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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Article 1. Findings | ||||||
5 | Section 1-5. Findings. The General Assembly finds that: | ||||||
6 | (a) The growing clean energy economy in Illinois can be a | ||||||
7 | vehicle for expanding equitable access to public health, | ||||||
8 | safety, a cleaner environment, quality jobs, economic | ||||||
9 | opportunity, and wealth-building, particularly in economically | ||||||
10 | disadvantaged communities and communities of black, | ||||||
11 | indigenous, and people of color that have had to bear the | ||||||
12 | disproportionate burden of dirty fossil fuel pollution. | ||||||
13 | (b) Placing Illinois on a path to 100% renewable energy is | ||||||
14 | vital to a clean energy future. To bring this vision to | ||||||
15 | fruition, our energy policy must prioritize a just transition | ||||||
16 | that incentivizes renewable development and other | ||||||
17 | carbon-reducing policies, such as energy efficiency, | ||||||
18 | beneficial electrification, and peak demand reduction, while | ||||||
19 | ensuring that the benefits and opportunities of a carbon-free | ||||||
20 | future are accessible in economically disadvantaged | ||||||
21 | communities, environmental justice communities, and | ||||||
22 | communities of black, indigenous, and people of color. | ||||||
23 | (c) In the wake of federal reversals on climate action, |
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1 | the State of Illinois should pursue immediate action on | ||||||
2 | policies that will ensure a just and responsible phase out of | ||||||
3 | fossil fuels from the power sector to reduce harmful emissions | ||||||
4 | from Illinois power plants, support power plant communities | ||||||
5 | and workers, and allow the clean energy economy to continue | ||||||
6 | growing in every corner of Illinois. | ||||||
7 | (d) Energy efficiency should form the basis of any robust | ||||||
8 | clean energy policy. It is the cheapest clean energy resource, | ||||||
9 | and efficiency upgrades help customers manage their energy | ||||||
10 | bills directly by reducing the energy they need, and | ||||||
11 | indirectly by holding demand and prices down statewide. | ||||||
12 | (e) The transportation sector is now the leading source of | ||||||
13 | carbon pollution in Illinois, responsible for roughly | ||||||
14 | one-third of all carbon emissions. The State of Illinois | ||||||
15 | should set forth an ambitious goal to remove the equivalent of | ||||||
16 | more than 1,000,000 gasoline and diesel-powered vehicles from | ||||||
17 | our roads by quickly implementing new policies that expand | ||||||
18 | access to transit, promote walking and biking mobility, and | ||||||
19 | increase electric vehicle adoption. If managed appropriately, | ||||||
20 | electric vehicle adoption will drastically reduce emissions | ||||||
21 | from transportation, and could save Illinois residents | ||||||
22 | billions of dollars. | ||||||
23 | (f) In addition to better air quality and a safer climate, | ||||||
24 | Illinois residents who do not use electric vehicles also | ||||||
25 | benefit from greater adoption through lower electric bills | ||||||
26 | resulting from the greater use of the electric grid during |
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1 | off-peak hours. | ||||||
2 | (g) The State of Illinois should set forth an ambitious | ||||||
3 | goal to transition all vehicle fleets operated by or on behalf | ||||||
4 | of public agencies to full electric power. The transition to | ||||||
5 | zero-emission fleets should be leveraged to promote increased | ||||||
6 | investment in domestic manufacturing capacity within the | ||||||
7 | emerging electric vehicle industry. The resulting new, | ||||||
8 | high-skilled production jobs can also provide pathways into | ||||||
9 | the middle class for racially, economically, and | ||||||
10 | geographically marginalized communities. When procuring | ||||||
11 | electric vehicles, public agencies shall use high-road | ||||||
12 | economic development standards, like the U.S. Employment Plan. | ||||||
13 | By using the U.S. Employment Plan or a Local Employment Plan, | ||||||
14 | public agencies will incentivize electric vehicle companies to | ||||||
15 | create and retain high-skilled manufacturing jobs with living | ||||||
16 | wages and benefits; invest in domestic manufacturing | ||||||
17 | facilities; and propose plans to recruit, train, and hire | ||||||
18 | workers who face structural barriers to family-sustaining jobs | ||||||
19 | and career pathways. | ||||||
20 | (h) Energy storage, such as batteries, can provide many | ||||||
21 | services to the electricity grid that benefit the grid, | ||||||
22 | including managing (or shaving) peak load, frequency | ||||||
23 | regulation, voltage support, reserve capacity, and black-start | ||||||
24 | capability. If that storage facilitates greater use of | ||||||
25 | renewables, it can allow for more clean energy to be | ||||||
26 | accessible, reduce pollution, and provide multiple benefits. |
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1 | (i) Illinois needs to adopt a broad-based policy approach | ||||||
2 | to decarbonize Illinois' electric sector (including | ||||||
3 | electricity production and consumption) in a just and | ||||||
4 | equitable manner that puts our State on track to phase out | ||||||
5 | carbon dioxide emitting power plants by 2030. | ||||||
6 | (j) Illinois' policy approach must ensure the reduction of | ||||||
7 | co-pollutant emissions that cause serious local health | ||||||
8 | impacts, prioritizing environmental justice communities near | ||||||
9 | power plants. | ||||||
10 | (k) As we decarbonize Illinois' electric sector, Illinois | ||||||
11 | must create new investment to stimulate the economic and | ||||||
12 | environmental well-being of communities disproportionately | ||||||
13 | impacted by the historical operation of, and recent or | ||||||
14 | expected closures of, fossil fuel power plants and coal mining | ||||||
15 | operations. | ||||||
16 | (l) On January 23, 2019, Governor Pritzker signed an | ||||||
17 | executive order committing Illinois as a signatory to the U.S. | ||||||
18 | Climate Alliance to reduce state-based greenhouse gas | ||||||
19 | emissions consistent with the 2015 Paris Agreement. This | ||||||
20 | commitment identifies natural and working lands as a principal | ||||||
21 | initiative to meet the associated carbon emissions reduction | ||||||
22 | targets for Illinois. As Illinois works to reduce carbon | ||||||
23 | emissions from the power generation and transportation | ||||||
24 | sectors, Illinois can also lead the nation in recognizing the | ||||||
25 | benefits of nature as a tool to both mitigate and adapt to | ||||||
26 | climate change. |
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1 | Article 5. Clean Jobs, Workforce and Contractor Equity Act | ||||||
2 | Part 1. Governance | ||||||
3 | Section 5-101. Short title. This Article may be cited as | ||||||
4 | the Clean Jobs, Workforce and Contractor Equity Act. | ||||||
5 | Section 5-105. Findings. | ||||||
6 | (a) The General Assembly finds that the clean energy jobs | ||||||
7 | sector, including renewables, energy efficiency, energy | ||||||
8 | storage, and other related fields, is a growing sector in the | ||||||
9 | State of Illinois and that programs to support a growing | ||||||
10 | workforce and robust businesses in this sector would benefit | ||||||
11 | from a centralized structure for community input and oversight | ||||||
12 | and regional program administration to reduce costs, support | ||||||
13 | knowledge sharing, and facilitate access to the programs. | ||||||
14 | (b) The General Assembly finds that the State of Illinois | ||||||
15 | should build upon the success of the Future Energy Jobs Act and | ||||||
16 | the Illinois Solar for All program by further expanding | ||||||
17 | statewide equitable access to quality training, jobs, and | ||||||
18 | economic opportunities across the entire clean energy sector | ||||||
19 | in and throughout Illinois, including solar, wind, energy | ||||||
20 | efficiency, transportation electrification, and other related | ||||||
21 | clean energy industries, especially for members of the | ||||||
22 | following communities across the State to enter and complete |
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1 | the career pipeline for clean energy jobs, with the goal of | ||||||
2 | serving all of the following groups distributed across the | ||||||
3 | network: (i) low-income persons and families; (ii) persons | ||||||
4 | residing in environmental justice communities; (iii) BIPOC | ||||||
5 | persons; (iv) justice-involved persons; (v) persons who are or | ||||||
6 | were in the child welfare system; (vi) energy workers; (vii) | ||||||
7 | members of any of these groups who are also women, | ||||||
8 | transgender, or gender nonconforming persons; and (viii) | ||||||
9 | members of any of these groups who are also youth, especially | ||||||
10 | those who have had to bear the disproportionate burden of | ||||||
11 | dirty fossil fuel pollution. The General Assembly further | ||||||
12 | finds that the programs included in the Clean Jobs, Workforce | ||||||
13 | and Contractor Equity Act are essential to equitable, | ||||||
14 | statewide access to quality training, jobs, and economic | ||||||
15 | opportunities across the clean energy sector. | ||||||
16 | (c) The General Assembly finds that the State of Illinois | ||||||
17 | should build upon the success of the Future Energy Jobs Act and | ||||||
18 | the Illinois Solar for All program by ensuring small, BIPOC | ||||||
19 | clean energy businesses and contractors have equitable access | ||||||
20 | to economic opportunities, including new clean energy jobs and | ||||||
21 | investment created by the growing clean energy sector in | ||||||
22 | Illinois. | ||||||
23 | (d) The General Assembly finds that serious challenges are | ||||||
24 | posed for Illinois small business owners due to income and | ||||||
25 | wealth disparities, that market barriers disproportionately | ||||||
26 | impact BIPOC contractors and small business owners, obtaining |
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1 | certifications and program qualifications are an essential | ||||||
2 | part of doing business in the clean energy economy and that | ||||||
3 | discriminatory lending policies limit these businesses' access | ||||||
4 | to capital. | ||||||
5 | (1) This finding is informed by a July 2020 analysis | ||||||
6 | of 2018 U.S. Census American Community Survey data by the | ||||||
7 | Center for American Progress which found that "while Black | ||||||
8 | Americans make up 13 percent of the U.S. population, they | ||||||
9 | own less than 2 percent of small businesses with | ||||||
10 | employees. By contrast, white Americans make up 60 percent | ||||||
11 | of the U.S. population but own 82 percent of small | ||||||
12 | employer firms. If Black Americans enjoyed the same | ||||||
13 | business ownership and success rates as their white | ||||||
14 | counterparts, there would be approximately 860,000 | ||||||
15 | additional Black-owned firms employing more than 10 | ||||||
16 | million people." (A Blueprint for Revamping the Minority | ||||||
17 | Business Development Agency, Center for American Progress | ||||||
18 | July 31, 2020). | ||||||
19 | (2) This finding is also informed by the Federal | ||||||
20 | Reserve Bank of Atlanta's December 2019 Small Business | ||||||
21 | Credit Survey which examined and found disparities in | ||||||
22 | reliance on personal funds/credit scores, loan application | ||||||
23 | outcomes, reliance on higher cost and lower transparency | ||||||
24 | credit products, loan approval rates and lender | ||||||
25 | satisfaction. The survey concluded "Minority-owned firms | ||||||
26 | more frequently reported financial challenges. |
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1 | Seventy-eight percent of Black-owned firms, and 69% of | ||||||
2 | Asian- and Hispanic-owned firms did so, compared to 62% of | ||||||
3 | White-owned businesses." (Small Business Credit Survey | ||||||
4 | 2019 Report on Minority-Owned Firms, Federal Reserve Bank | ||||||
5 | of Atlanta, December 2019). | ||||||
6 | (3) The General Assembly further finds that these | ||||||
7 | disparities continue as businesses develop. This finding | ||||||
8 | is informed by a December 2016 Stanford Institute for | ||||||
9 | Economic Policy Research study that concluded "We find | ||||||
10 | that African-American business ventures start smaller in | ||||||
11 | terms of overall financial capital and invest capital at a | ||||||
12 | slower rate in the years following startup. This means | ||||||
13 | that funding differences present at the firm's founding | ||||||
14 | persist and even worsen over time." | ||||||
15 | (4) For these reasons, the Illinois Clean Energy | ||||||
16 | Black, Indigenous, and People of Color Primes Contractor | ||||||
17 | Accelerator Program is narrowly tailored to encourage and | ||||||
18 | sustain the growth of BIPOC contractors in the Illinois | ||||||
19 | clean energy economy through individualized coaching, | ||||||
20 | specialized training, mentorships with established clean | ||||||
21 | energy firms, operational support, appropriate business | ||||||
22 | certifications and program enrollments and access to | ||||||
23 | capital. | ||||||
24 | (e) The General Assembly finds that the clean energy jobs | ||||||
25 | sector, including renewables, energy efficiency, energy | ||||||
26 | storage, and other related fields, is a growing sector in the |
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1 | State of Illinois, that returning residents will be well | ||||||
2 | served by considering employment in this field, and that the | ||||||
3 | residents of the State of Illinois will benefit from the | ||||||
4 | continued growth of jobs in this sector. | ||||||
5 | Section 5-110. Power of the Department. The Department may | ||||||
6 | adopt such rules as the Director deems necessary to carry out | ||||||
7 | the purposes of this Act. | ||||||
8 | Section 5-115. Definitions. As used in this Act: | ||||||
9 | "Advisory Board" means the Equity and Empowerment in Clean | ||||||
10 | Energy Advisory Board as established in this Act. | ||||||
11 | "Black, indigenous, and people of color" and "BIPOC" are | ||||||
12 | defined as people who are members of the groups described in | ||||||
13 | subparagraphs (a) through (e) of paragraph (A) of subsection | ||||||
14 | (1) of Section 2 of the Business Enterprise for Minorities, | ||||||
15 | Women, and Persons with Disabilities Act. | ||||||
16 | "Clean Energy Jobs" means jobs in the solar energy, wind | ||||||
17 | energy, energy efficiency, solar thermal, geothermal, and | ||||||
18 | electric vehicle industries, and other renewable energy | ||||||
19 | industries, including related industries that manufacture, | ||||||
20 | develop, build, maintain, or provide ancillary services to | ||||||
21 | renewable energy resources or energy efficiency products or | ||||||
22 | services, including the manufacture and installation of | ||||||
23 | healthier building materials that contain fewer hazardous | ||||||
24 | chemicals. "Clean Energy Jobs" include administrative, sales, |
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1 | and other support functions within these industries. | ||||||
2 | "Community-based organization" means an organization in | ||||||
3 | which: | ||||||
4 | (1) the majority of the governing body consists of | ||||||
5 | local residents; | ||||||
6 | (2) at least one main operating office is in the | ||||||
7 | community; | ||||||
8 | (3) priority issue areas are identified and defined by | ||||||
9 | local residents; | ||||||
10 | (4) solutions to address priority issues are developed | ||||||
11 | with local residents; and | ||||||
12 | (5) organizational program design, implementation, and | ||||||
13 | evaluation components have local residents intimately | ||||||
14 | involved in leadership positions in the organization. | ||||||
15 | "Department" means the Department of Commerce and Economic | ||||||
16 | Opportunity, unless the text solely specifies a particular | ||||||
17 | Department. | ||||||
18 | "Director" means the director of the Department of | ||||||
19 | Commerce and Economic Opportunity. | ||||||
20 | "Energy Efficiency" has the meaning set forth in Section | ||||||
21 | 1-10 of the Illinois Power Agency Act. | ||||||
22 | "Energy worker" has the meaning set forth in Section 20-10 | ||||||
23 | of the Energy Community Reinvestment Act. | ||||||
24 | "Environmental Justice Community" means the definition of | ||||||
25 | that term based on existing methodologies and findings, used | ||||||
26 | as may be updated by the Illinois Power Agency and its program |
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1 | administrator in the Illinois Solar for All program. | ||||||
2 | "Low-income" means persons and households whose income | ||||||
3 | does not exceed 80% of the area median income, adjusted for | ||||||
4 | family size and revised every 2 years. | ||||||
5 | "Primes Program Administrator" means the entity defined as | ||||||
6 | such by Part 15 of this Act. | ||||||
7 | "Regional Administrator" means the entities selected | ||||||
8 | according to Section 5-130 of this Act. | ||||||
9 | "Regional Primes Program Lead" means the entities defined | ||||||
10 | as such by Part 15 of this Act. | ||||||
11 | "Renewable energy resources" has the meaning set forth in | ||||||
12 | Section 1-10 of the Illinois Power Act. | ||||||
13 | Section 5-120. Purpose. The Equity and Empowerment in | ||||||
14 | Clean Energy Advisory Board shall be established to advise and | ||||||
15 | assist the Illinois Department of Commerce and Economic | ||||||
16 | Opportunity in its efforts to administer the following | ||||||
17 | programs as set forth in this Act: the Clean Jobs Workforce | ||||||
18 | Hubs Program; the Expanding Clean Energy Entrepreneurship and | ||||||
19 | Contractor Incubator Network Program; the Returning Residents | ||||||
20 | Clean Jobs Training Program; and the Illinois Clean Energy | ||||||
21 | Black, Indigenous, and People of Color Primes Contractor | ||||||
22 | Accelerator. The Illinois Department of Commerce and Economic | ||||||
23 | Opportunity shall contract with 3 Regional Administrators as | ||||||
24 | described in this Part to assist in the implementation of | ||||||
25 | several of these programs, and shall develop a system of |
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1 | performance management and corrective action applicable to | ||||||
2 | these programs. | ||||||
3 | Section 5-125. Equity and Empowerment in Clean Energy | ||||||
4 | Advisory Board. | ||||||
5 | (a) Purpose. To ensure success and equity in the clean | ||||||
6 | energy industry in Illinois, the General Assembly hereby | ||||||
7 | creates an Equity and Empowerment in Clean Energy Advisory | ||||||
8 | Board to oversee and advise the Department on the | ||||||
9 | administration of the following programs set forth in this | ||||||
10 | Act: | ||||||
11 | (1) the Clean Jobs Workforce Hubs Program; | ||||||
12 | (2) the Expanding Clean Energy Entrepreneurship and | ||||||
13 | Contractor Incubator Network Program; | ||||||
14 | (3) the Returning Residents Clean Jobs Training | ||||||
15 | Program; and | ||||||
16 | (4) the Illinois Clean Energy Black, Indigenous, and | ||||||
17 | People of Color Primes Contractor Accelerator. | ||||||
18 | (b) Meetings. The Department shall provide administrative | ||||||
19 | support for and convene the Equity and Empowerment in Clean | ||||||
20 | Energy Advisory Board within 90 days after the effective date | ||||||
21 | of this Act. The Department shall convene at least one meeting | ||||||
22 | of the Advisory Board every quarter. All meetings shall be | ||||||
23 | accessible, with rotating locations, call-in and | ||||||
24 | videoconference options, and materials and agendas circulated | ||||||
25 | well in advance, and there shall also be opportunities for |
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1 | input outside of meetings from those with limited capacity and | ||||||
2 | ability to attend, via one-on-one meetings, surveys, and calls | ||||||
3 | subject to compliance with the Open Meetings Act. | ||||||
4 | (c) Duties. The Advisory Board: | ||||||
5 | (1) shall review reported program performance metrics, | ||||||
6 | and may recommend harmonizing metrics across programs and | ||||||
7 | additional metrics for collection, including, but not | ||||||
8 | limited to, metrics tailored to a specific program or | ||||||
9 | program delivery area; | ||||||
10 | (2) shall ensure program performance metrics are | ||||||
11 | published and available to the public within 30 days after | ||||||
12 | each advisory board meeting. Program performance metrics | ||||||
13 | may be anonymized where necessary to prevent disclosure of | ||||||
14 | private information about individuals. The Department | ||||||
15 | shall also post Advisory Board meeting minutes on its | ||||||
16 | website within 14 days after Board approval; | ||||||
17 | (3) shall ensure that notices of open requests for | ||||||
18 | proposals and other business opportunities associated with | ||||||
19 | the programs are widely circulated and available in the | ||||||
20 | communities where each program is located and among | ||||||
21 | communities who benefit from the programs; | ||||||
22 | (4) shall develop recommendations at least once every | ||||||
23 | 3 months to aid the Department, program implementers, and | ||||||
24 | other program partners in tracking and improving the | ||||||
25 | performance of the Program; | ||||||
26 | (5) shall provide recommendations to the Department, |
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1 | program implementers, and other program partners to | ||||||
2 | troubleshoot emergent challenges and identify emergent | ||||||
3 | opportunities to improve the delivery of program elements | ||||||
4 | in addition to those captured in collected metrics. The | ||||||
5 | recommendations may be targeted toward any level or | ||||||
6 | geographic area of implementation; | ||||||
7 | (6) shall collaborate with the Board Liaison, | ||||||
8 | Department, and other program partners and vendors to | ||||||
9 | inform updates to the public about Advisory Board | ||||||
10 | activities; | ||||||
11 | (7) shall advise the Department, Regional | ||||||
12 | Administrators, and Primes Program Administrator on the | ||||||
13 | development of dispute resolution processes; and | ||||||
14 | (8) shall perform any other duties assigned to it by | ||||||
15 | this Act. | ||||||
16 | (d) Composition and Terms. The Department shall appoint | ||||||
17 | the Advisory Board within 90 days after the effective date of | ||||||
18 | this Act and shall appoint new Advisory Board members as | ||||||
19 | members' terms expire or members leave the Board. Members of | ||||||
20 | the Advisory Board shall serve without compensation, but may | ||||||
21 | be reimbursed for their reasonable and necessary expenses | ||||||
22 | incurred in performing their duties. The Department shall | ||||||
23 | provide administrative support to the Advisory Board, | ||||||
24 | including the selection of a Department staff member to serve | ||||||
25 | as a Board Liaison between the Department and the Advisory | ||||||
26 | Board. The Department shall appoint interim members to the |
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1 | Advisory Board upon departures of members. The Advisory Board | ||||||
2 | shall consist of the following 15 members that reflects the | ||||||
3 | diversity and demographics of the State of Illinois: | ||||||
4 | (1) 2 low-income persons residing in communities | ||||||
5 | listed in paragraphs (1) through (3) in subsection (b) of | ||||||
6 | Section 5-130 of this Part; | ||||||
7 | (2) 2 residents of Environmental Justice Communities | ||||||
8 | served by a Hub Site, as defined in Part 5 of this Act; | ||||||
9 | (3) one current or former participant trainee in the | ||||||
10 | Clean Energy Entrepreneurship and Contractor Incubator | ||||||
11 | Network Program. For the initial board term, the | ||||||
12 | Department may select a current or former participant of a | ||||||
13 | utility-supported contractor incubator program for this | ||||||
14 | position; | ||||||
15 | (4) 2 members from community-based organizations in | ||||||
16 | environmental justice communities and community-based | ||||||
17 | organizations serving low-income persons and families; | ||||||
18 | (5) 2 members who are policy or implementation experts | ||||||
19 | on small business development, contractor incubation, or | ||||||
20 | small business lending and financing needs; | ||||||
21 | (6) 2 members who are policy or implementation experts | ||||||
22 | on workforce development for populations and individuals | ||||||
23 | such as low-income persons and families, environmental | ||||||
24 | justice communities, BIPOC communities, justice-involved | ||||||
25 | persons, persons who are or were in the child welfare | ||||||
26 | system, energy workers, gender nonconforming and |
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1 | transgender individuals, and youth; | ||||||
2 | (7) 2 representatives of clean energy businesses, | ||||||
3 | nonprofit organizations, worker-owned cooperatives, and | ||||||
4 | other groups that provide clean energy contracting | ||||||
5 | opportunities; and | ||||||
6 | (8) 2 representatives of labor unions. | ||||||
7 | At any time, the Board must contain at least 4 members who | ||||||
8 | reside in each of the North, Central, and Southern sections of | ||||||
9 | Illinois. The terms of the initial members of the Advisory | ||||||
10 | Board shall be such that 5 members have initial 3-year terms, 5 | ||||||
11 | members have initial 2-year terms, and 5 members have initial | ||||||
12 | 1-year terms. After initial terms are complete, all members of | ||||||
13 | the Advisory Board shall have 3-year terms. A majority of | ||||||
14 | Board members shall constitute a quorum. | ||||||
15 | Section 5-130. Regional administrators. | ||||||
16 | (a) Within 180 days after the effective date of this Act, | ||||||
17 | the Department shall convene and complete a comprehensive | ||||||
18 | stakeholder process that includes, at minimum, representatives | ||||||
19 | from community-based organizations in environmental justice | ||||||
20 | communities, community-based organizations serving low-income | ||||||
21 | persons and families, community-based organizations serving | ||||||
22 | energy workers, and labor unions. The stakeholder process must | ||||||
23 | include measures for process transparency to be posted on the | ||||||
24 | Department website or initial program websites, such as a | ||||||
25 | timeline for key decision points, detailed criteria |
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1 | implementing requirements specified in subsection (b) of this | ||||||
2 | Section, and identification of opportunities for stakeholder | ||||||
3 | participation and review. After completing the stakeholder | ||||||
4 | process, the Department, in consultation with and with the | ||||||
5 | approval of the Advisory Board, shall select 3 Regional | ||||||
6 | Administrators to administer and coordinate the work of the | ||||||
7 | following programs set forth in this Act: | ||||||
8 | (1) the Clean Jobs Workforce Hubs Program; | ||||||
9 | (2) the Expanding Clean Energy Entrepreneurship and | ||||||
10 | Contractor Incubator Network Program; and | ||||||
11 | (3) the Returning Residents Clean Jobs Training | ||||||
12 | Program. | ||||||
13 | (b) The Department shall select 3 unique Regional | ||||||
14 | Administrators: one Regional Administrator for coordination of | ||||||
15 | the work in the Northern Illinois Program Delivery Area, one | ||||||
16 | Regional Administrator selected for coordination of the work | ||||||
17 | in the Central Illinois Program Delivery Area, and one | ||||||
18 | Regional Administrator selected for coordination of the work | ||||||
19 | in the Southern Illinois Program Delivery Area. For purposes | ||||||
20 | of this Act: | ||||||
21 | (1) The Northern Illinois Program Delivery Area | ||||||
22 | includes areas in or near Chicago (South Side), Chicago | ||||||
23 | (Southwest Side), Waukegan, Rockford, Aurora, Joliet, and | ||||||
24 | one of the 3 sites to be selected based on the gap analyses | ||||||
25 | described in subsection (b) of Section 5-515 of Part 5 of | ||||||
26 | this Act and subsection (b) of Section 5-1010 of Part 10 of |
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1 | this Act. | ||||||
2 | (2) The Central Illinois Program Delivery Area | ||||||
3 | includes areas in or near Peoria, Champaign, Danville, | ||||||
4 | Decatur, and one of the 3 sites to be selected based on the | ||||||
5 | gap analyses described in subsection (b) of Section 5-515 | ||||||
6 | of Part 5 of this Act and subsection (b) of Section 5-1010 | ||||||
7 | of Part 10 of this Act. | ||||||
8 | (3) The Southern Illinois Program Delivery Area | ||||||
9 | includes areas in or near Carbondale, East St. Louis, and | ||||||
10 | Alton, and one of the 3 sites to be selected based on the | ||||||
11 | gap analyses described in subsection (b) of Section 5-515 | ||||||
12 | of Part 5 of this Act and subsection (b) of Section 5-1010 | ||||||
13 | of Part 10 of this Act. | ||||||
14 | (c) The Regional Administrators shall have strong | ||||||
15 | capabilities, experience, and knowledge related to program | ||||||
16 | development and fiscal management; cultural and language | ||||||
17 | competency needed to be effective in their respective | ||||||
18 | communities to be served; expertise in working in and with | ||||||
19 | BIPOC and environmental justice communities; knowledge and | ||||||
20 | experience in working with providers of clean energy jobs; and | ||||||
21 | awareness of industry trends and activities, workforce | ||||||
22 | development best practices, regional workforce development | ||||||
23 | needs, regional and industry employers, and community | ||||||
24 | development. The Regional Administrators shall demonstrate a | ||||||
25 | track record of strong partnerships with community-based | ||||||
26 | organizations. |
| |||||||
| |||||||
1 | (d) The Regional Administrators shall work together to | ||||||
2 | coordinate the programs listed in paragraphs (1) through (3) | ||||||
3 | of subsection (a) to ensure execution, performance, | ||||||
4 | partnerships, marketing, and program access across the State | ||||||
5 | that is as consistent as possible while respecting regional | ||||||
6 | differences. The Regional Administrators shall work with | ||||||
7 | Program Administrators and partner community-based | ||||||
8 | organizations in their respective regions and Program Delivery | ||||||
9 | Areas to deliver these programs and shall establish mechanisms | ||||||
10 | to fund these partner community-based organizations for their | ||||||
11 | work on these programs. Each of the Regional Administrators | ||||||
12 | shall convene the community-based organizations delivering | ||||||
13 | program elements in their Program Delivery Areas for a meeting | ||||||
14 | once per quarter, at minimum, as well as monthly calls, at | ||||||
15 | minimum. Each year, the Department shall convene a meeting of | ||||||
16 | the Regional Administrators, contracted community-based | ||||||
17 | organizations, and subcontracted entities. | ||||||
18 | (e) The Department shall oversee the coordination | ||||||
19 | undertaken by all 3 Regional Administrators to ensure | ||||||
20 | high-quality and equivalent service provision statewide. The | ||||||
21 | Department shall require, at minimum, monthly coordination | ||||||
22 | meetings including the Department and all 3 Regional | ||||||
23 | Administrators to develop joint planning processes and | ||||||
24 | coordination mechanisms with each of the Regional | ||||||
25 | Administrators and among the 3 Regional Administrators such | ||||||
26 | that they are functioning effectively and delivering parallel |
| |||||||
| |||||||
1 | administration in their respective regions, and the Department | ||||||
2 | shall also work to create joint planning opportunities and | ||||||
3 | coordination mechanisms to enable the Regional Administrators | ||||||
4 | to collaborate, particularly enabling the Regional | ||||||
5 | Administrators to coordinate and collaborate to enhance | ||||||
6 | program delivery within their respective program delivery | ||||||
7 | areas. | ||||||
8 | (f) Regional Administrators shall present a regional | ||||||
9 | status report consisting of, at minimum, the performance | ||||||
10 | metrics detailed in the programs described in subsection (a) | ||||||
11 | of this Section to the Advisory Board at each of its quarterly | ||||||
12 | meetings. | ||||||
13 | (g) Regional Administrators shall take on additional | ||||||
14 | duties related to the program administration as assigned by | ||||||
15 | the Department. | ||||||
16 | Section 5-135. Corrective action. | ||||||
17 | (a) The Department shall maintain a performance management | ||||||
18 | system to support the Primes Program Administrator, Regional | ||||||
19 | administrators, and Regional Primes Program Leads in ensuring | ||||||
20 | effective and high-quality implementation of the programs | ||||||
21 | listed in Section 5-120 of this Part. | ||||||
22 | (b) If the Primes Program Administrator, a Regional | ||||||
23 | Administrator, a Regional Primes Program Lead or contracted | ||||||
24 | community-based organization or other vendor does not deliver | ||||||
25 | contractually obligated program elements, objectives, or |
| |||||||
| |||||||
1 | outcomes, even after multiple corrective action plans have | ||||||
2 | been implemented, the Department or, in the case of | ||||||
3 | community-based organizations or other vendors, the Regional | ||||||
4 | Administrator may place the organization on probationary | ||||||
5 | status, or as needed, terminate their services. The Department | ||||||
6 | shall develop procedures to enable Regional Administrators to | ||||||
7 | procure expedited replacement contracts to avoid any resulting | ||||||
8 | disruption to the affected programs. | ||||||
9 | (c) If the Primes Program Administrator, a Regional | ||||||
10 | Administrator, a Regional Primes Program Lead or contracted | ||||||
11 | community-based organization or other vendor does not deliver | ||||||
12 | contractually obligated program elements, objectives, or | ||||||
13 | outcomes after corrective action has been implemented, the | ||||||
14 | Department may take additional corrective action, including, | ||||||
15 | but not limited to, a legally binding dispute resolution | ||||||
16 | process. | ||||||
17 | (d) The Department, Primes Program Administrator, and | ||||||
18 | Regional Administrators shall develop uniform guidelines for | ||||||
19 | minimum components of corrective action plans, and guidelines | ||||||
20 | for when probationary status or termination is deemed | ||||||
21 | warranted for the Primes, Program Administrator, Regional | ||||||
22 | Administrators, a Regional Primes Program Lead, contracted | ||||||
23 | community-based organizations or other vendors. The | ||||||
24 | Department, Primes Program Administrator, and Regional | ||||||
25 | Administrators, with input from the Advisory Board, shall | ||||||
26 | develop a uniform, legally binding mechanism for dispute |
| |||||||
| |||||||
1 | resolution between contracted community-based organizations | ||||||
2 | and their subcontracted entities to be implemented under the | ||||||
3 | Primes Program Administrator, Regional Administrators or other | ||||||
4 | identified mediator.
| ||||||
5 | Section 5-140. Statewide program support lead. The | ||||||
6 | Department may contract with an outside vendor to assist with | ||||||
7 | program administration, contract management, management of | ||||||
8 | Regional Administrators, or other functions, as needed. | ||||||
9 | Section 5-145. Agreements. All agreements entered into | ||||||
10 | between the Department and entities for the purpose of | ||||||
11 | implementing the programs listed in Section 5-120 of this Part | ||||||
12 | shall contain provisions that provide for the implementation | ||||||
13 | of this Act. | ||||||
14 | Section 5-150. Administration; rules. The Department shall | ||||||
15 | administer this Act and shall adopt any rules necessary for | ||||||
16 | that purpose. | ||||||
17 | Part 5. Clean Jobs Workforce Hubs Network Program | ||||||
18 | Section 5-505. Definitions. As used in this Part: | ||||||
19 | "Program" means the Clean Jobs Workforce Hubs Network | ||||||
20 | Program. |
| |||||||
| |||||||
1 | Section 5-510. Clean Jobs Workforce Hubs Network Program. | ||||||
2 | (a) The Department shall develop, and through Regional | ||||||
3 | Program Administrators administer, the Clean Jobs Workforce | ||||||
4 | Hubs Network Program to create a network of 16 Program | ||||||
5 | delivery Hub Sites with program elements delivered by | ||||||
6 | community-based organizations and their subcontractors | ||||||
7 | geographically distributed across the State. | ||||||
8 | (b) The Program shall provide direct and sustained support | ||||||
9 | to members of one or more of the following members of | ||||||
10 | communities across the State to enter and complete the career | ||||||
11 | pipeline for clean energy jobs, with the goal of serving all of | ||||||
12 | the following groups distributed across the network: (i) | ||||||
13 | low-income persons; (ii) persons residing in environmental | ||||||
14 | justice communities; (iii) BIPOC persons; (iv) | ||||||
15 | justice-involved persons; (v) persons who are or were in the | ||||||
16 | child welfare system; (vi) energy workers; (vii) members of | ||||||
17 | any of these groups who are also women, transgender, or gender | ||||||
18 | nonconforming persons; and (viii) members of any of these | ||||||
19 | groups who are also youth. | ||||||
20 | (c) The Clean Jobs Workforce Hubs Network Program must: | ||||||
21 | (1) leverage community-based organizations, | ||||||
22 | educational institutions, and community-based and | ||||||
23 | labor-based training providers to ensure members of | ||||||
24 | disadvantaged communities across the State have dedicated | ||||||
25 | and sustained support to enter and complete the career | ||||||
26 | pipeline for clean energy jobs; and |
| |||||||
| |||||||
1 | (2) develop formal partnerships, including formal | ||||||
2 | sector partnerships between community-based organizations | ||||||
3 | and (i) trades groups, (ii) labor unions, and (iii) | ||||||
4 | entities that provide clean energy jobs, including | ||||||
5 | businesses, nonprofit organizations, and worker-owned | ||||||
6 | cooperatives to ensure that Program participants have | ||||||
7 | priority access to high-quality preapprenticeship, | ||||||
8 | apprenticeship, and other employment training and hiring | ||||||
9 | opportunities. | ||||||
10 | Section 5-515. Clean Jobs Workforce Hubs Network. | ||||||
11 | (a) The Department must develop and, through Regional | ||||||
12 | Administrators, administer the Clean Jobs Workforce Hubs | ||||||
13 | Network. | ||||||
14 | (b) The Clean Jobs Workforce Hubs Network shall be made up | ||||||
15 | of 16 Program delivery Hub Sites geographically distributed | ||||||
16 | across the State, including at least one Hub Site located in or | ||||||
17 | near each of the following areas: Chicago (South Side), | ||||||
18 | Chicago (Southwest Side), Waukegan, Rockford, Aurora, Joliet, | ||||||
19 | Peoria, Champaign, Danville, Decatur, Carbondale, East St. | ||||||
20 | Louis, and Alton. Three additional Hub Sites shall be | ||||||
21 | determined by the Department within 240 days after the | ||||||
22 | effective date of this Act based on a gap analysis identifying | ||||||
23 | areas with high concentrations of low-income residents, | ||||||
24 | environmental justice communities, and energy workers that are | ||||||
25 | otherwise underserved by the other 13 Hub Sites, as well as |
| |||||||
| |||||||
1 | review of advisory recommendations from the Advisory Board | ||||||
2 | specified in subsection (d) of Section 5-520. One of the | ||||||
3 | additional sites shall be located in the Northern Illinois | ||||||
4 | Program Delivery Area covering Northern Illinois, one of the | ||||||
5 | additional sites shall be located in the Central Illinois | ||||||
6 | Program Delivery Area covering Central Illinois, and one of | ||||||
7 | the additional sites shall be located in the Southern Illinois | ||||||
8 | Program Delivery Area covering Southern Illinois as specified | ||||||
9 | in Section 5-130 of Part 1 of this Act. | ||||||
10 | (c) Program elements at each Hub Site shall be provided by | ||||||
11 | a local community-based organization that shall be initially | ||||||
12 | competitively selected by the Department within 330 days after | ||||||
13 | the effective date of this Act and shall be subsequently | ||||||
14 | competitively selected by the Department every 5 years. | ||||||
15 | Community-based organizations delivering program elements | ||||||
16 | outlined in subsection (d) may provide all elements required | ||||||
17 | or may subcontract to other entities for provision of portions | ||||||
18 | of program elements, including, but not limited to, | ||||||
19 | administrative soft and hard skills for program participants, | ||||||
20 | delivery of specific training in the core curriculum, or | ||||||
21 | provision of other support functions for program delivery | ||||||
22 | compliance. The Department and the Regional Administrators, | ||||||
23 | with input from the Advisory Board, shall develop uniform | ||||||
24 | minimum contractual requirements for competitively selected | ||||||
25 | community-based organizations to provide the Program, uniform | ||||||
26 | minimum contractual requirements for all Program subcontracts, |
| |||||||
| |||||||
1 | and uniform templates for requests for proposals for all | ||||||
2 | Program subcontracts. | ||||||
3 | (d) The Clean Jobs Workforce Hubs Network shall provide | ||||||
4 | all of the following program elements: | ||||||
5 | (1) Community education and outreach about workforce | ||||||
6 | and training opportunities to ensure the following persons | ||||||
7 | are informed of clean energy workforce and training | ||||||
8 | opportunities: (i) low-income persons; (ii) persons | ||||||
9 | residing in environmental justice communities; (iii) BIPOC | ||||||
10 | persons; (iv) justice-involved persons; (v) persons who | ||||||
11 | are or were in the child welfare system; (vi) energy | ||||||
12 | workers; (vii) members of any of these groups who are also | ||||||
13 | women, transgender, or gender nonconforming persons; and | ||||||
14 | (viii) members of any of these groups who are also youth. | ||||||
15 | (2) Implementation of the Clean Jobs Curriculum, which | ||||||
16 | may include, but is not limited to training, | ||||||
17 | preapprenticeship, certification preparation, job | ||||||
18 | readiness, and skill development, including soft skills, | ||||||
19 | math skills, technical skills, certification test | ||||||
20 | preparation, and other development needed for Program | ||||||
21 | participant members of disadvantaged communities specified | ||||||
22 | in subsection (b) of Section 5-510. | ||||||
23 | (3) Development of strategies to ensure that | ||||||
24 | participant members of communities specified in subsection | ||||||
25 | (b) of Section 5-510 are invited, supported, and given | ||||||
26 | preference in applying for both community-based and |
| |||||||
| |||||||
1 | labor-based training opportunities, including | ||||||
2 | apprenticeship and preapprenticeship programs, as well as | ||||||
3 | degree and certificate credentials training programs. | ||||||
4 | Strategies shall include, but are not limited to, targeted | ||||||
5 | outreach and recruitment activities and events, and | ||||||
6 | strategies may include, but are not limited to, | ||||||
7 | articulation or matriculation agreements and memoranda of | ||||||
8 | understanding with community-based and labor-based | ||||||
9 | training opportunities, including preapprenticeship and | ||||||
10 | apprenticeship programs, as well as degree and certificate | ||||||
11 | credential training programs where relevant. | ||||||
12 | (4) A living wage-equivalent stipend program for | ||||||
13 | Program participants to compensate for time in clean | ||||||
14 | energy jobs-related training programs and help them pay | ||||||
15 | for necessary living expenses during the training. This | ||||||
16 | stipend shall be supplemented by funding for | ||||||
17 | transportation, child care, certification preparation and | ||||||
18 | testing fees, textbooks, tools and equipment, as well as | ||||||
19 | other services and supplies needed to reduce barriers to | ||||||
20 | their continued training and future employment during the | ||||||
21 | length of programs. | ||||||
22 | (5) Job readiness, placement, and retention support | ||||||
23 | services, which may include, but are not limited to, | ||||||
24 | assistance in creating a resume, training in professional | ||||||
25 | networking skills, training in job interview skills and | ||||||
26 | preparation, on-the-job support and counseling, conflict |
| |||||||
| |||||||
1 | resolution skills, financial literacy and coaching, and | ||||||
2 | training in how to find open positions and pursuing | ||||||
3 | opportunities to meet hiring contractors in training and | ||||||
4 | apprenticeship programs to connect trainees to both union | ||||||
5 | and nonunion career options with businesses, nonprofit | ||||||
6 | organizations, worker-owned cooperatives, and other | ||||||
7 | entities that provide clean energy jobs opportunities and | ||||||
8 | to provide a direct resource for industry to identify | ||||||
9 | qualified workers to meet program hiring or subcontracting | ||||||
10 | requirements including, the workforce equity building | ||||||
11 | actions required under Section 1-75 of the Illinois Power | ||||||
12 | Agency Act and Section 16-128B of the Public Utilities | ||||||
13 | Act. Placement activities shall include outreach to public | ||||||
14 | agencies and utilities, as well as outreach to businesses, | ||||||
15 | nonprofit organizations, worker-owned cooperatives, and | ||||||
16 | other entities that provide clean energy jobs | ||||||
17 | opportunities. | ||||||
18 | (6) Recruitment, communications, and ongoing | ||||||
19 | engagement with potential employers, including, but not | ||||||
20 | limited to, activities such as job matchmaking | ||||||
21 | initiatives, hosting events such as job fairs, and | ||||||
22 | collaborating with other Hub Sites to identify and | ||||||
23 | implement best practices for employer engagement. | ||||||
24 | (e) Within 90 days after the effective date of this Act, | ||||||
25 | the Department shall competitively select a community-based | ||||||
26 | organization to assist with pre-Program launch public |
| |||||||
| |||||||
1 | communications and stakeholder tracking, which shall begin | ||||||
2 | within 120 days after the effective date of this Act and shall | ||||||
3 | continue through Program launch. The Department may elect to | ||||||
4 | initiate pre-Program communication of updates to the public | ||||||
5 | between the effective date of this Act and competitive | ||||||
6 | selection of a community-based organization to assist. | ||||||
7 | Pre-Program launch communications and stakeholder tracking | ||||||
8 | functions shall include, but are not limited to: (1) | ||||||
9 | developing an initial email subscription list so that | ||||||
10 | interested stakeholders and interested members of the public | ||||||
11 | may sign up to receive email updates about the status of | ||||||
12 | Program implementation, (2) develop an initial basic website | ||||||
13 | including the initial email list subscription form and a page | ||||||
14 | where public pre-Program updates shall be posted, (3) develop | ||||||
15 | initial social media accounts where public pre-Program updates | ||||||
16 | shall be posted, and (4) coordinate with the Department, | ||||||
17 | Regional Administrators, and Advisory Board members to solicit | ||||||
18 | information for the purposes of updating the public, as | ||||||
19 | approved by the Department. Pre-Program updates shall include, | ||||||
20 | but are not limited to, information about implementation | ||||||
21 | timelines, selection of Hub Sites, selection of Advisory Board | ||||||
22 | members, selection of Regional Administrators, selection of | ||||||
23 | contracted organizations, updates from the Advisory Board, and | ||||||
24 | other significant Program Administration updates. Pre-Program | ||||||
25 | updates shall be disseminated to the public through the | ||||||
26 | website, email list, and social media accounts no less |
| |||||||
| |||||||
1 | frequently than once per month. Following Program launch, the | ||||||
2 | Department shall either (A) assume direct fulfillment of all | ||||||
3 | responsibilities of public communications and stakeholder | ||||||
4 | tracking directly or (B) elect to continue to competitively | ||||||
5 | select a community-based organization to continue these | ||||||
6 | functions and develop all initial functions into ongoing | ||||||
7 | Program functions. If the Department elects to continue to | ||||||
8 | competitively contract these functions, the Department may | ||||||
9 | either: (i) elect to extend the contract to the competitively | ||||||
10 | selected community-based organization delivering these | ||||||
11 | functions during the pre-Program launch period, and may do so | ||||||
12 | for a period to be determined by the Department, but to not | ||||||
13 | exceed 2 years following Program launch; or (ii) elect to | ||||||
14 | competitively select another community-based organization to | ||||||
15 | fulfill communications and stakeholder tracking functions. The | ||||||
16 | Department shall subsequently competitively select a | ||||||
17 | community-based organization to fulfill communications and | ||||||
18 | stakeholder tracking functions every 2 years. | ||||||
19 | Section 5-520. Regional administrators. | ||||||
20 | (a) The Clean Jobs Workforce Network Hubs Program shall be | ||||||
21 | administered by 3 Regional Administrators as described in | ||||||
22 | Section 5-130 of Part 1 of this Act. | ||||||
23 | (b) The Advisory Board shall have the duties given to it by | ||||||
24 | Part 1 of this Act as it relates to the Program. In addition, | ||||||
25 | the Advisory Board shall provide recommendations to the |
| |||||||
| |||||||
1 | Department to complement the gap analysis and selection of 3 | ||||||
2 | Primary Hub Sites as specified in Section 5-130 of Part 1 of | ||||||
3 | this Act. | ||||||
4 | (c) The Department shall require submission of quarterly | ||||||
5 | reports including program performance metrics by each Hub Site | ||||||
6 | to the Regional Administrator of their Program Delivery Area, | ||||||
7 | as specified in subsection (a) of Section 5-1015 of Part 10, in | ||||||
8 | a time and manner as prescribed by the Department. Each | ||||||
9 | Regional Administrator shall collect, track, and | ||||||
10 | simultaneously submit quarterly reports to the Department and | ||||||
11 | the members of the Advisory Board, including program | ||||||
12 | performance metrics reported in a format that allows for | ||||||
13 | review of the metrics both (i) for each individual Hub Site and | ||||||
14 | (ii) aggregated by Program Delivery Area. Each Regional | ||||||
15 | Administrator shall provide technical assistance to each | ||||||
16 | individual Hub Site in their Program Delivery Area in building | ||||||
17 | systems and capacity to collect data. Program Performance | ||||||
18 | metrics include, but are not limited to, the following | ||||||
19 | information collected for each Program trainee, where | ||||||
20 | applicable: | ||||||
21 | (1) demographic data, including racial, gender, and | ||||||
22 | geographic distribution data, on Program trainees entering | ||||||
23 | the Program; | ||||||
24 | (2) demographic data, including racial, gender, and | ||||||
25 | geographic distribution data, on Program trainees | ||||||
26 | graduating the Program; |
| |||||||
| |||||||
1 | (3) demographic data, including racial, gender, and | ||||||
2 | geographic distribution data, on Program trainees who are | ||||||
3 | placed in employment, including the percentages of | ||||||
4 | trainees by race, gender, and geographic categories in | ||||||
5 | each individual job type or category and whether | ||||||
6 | employment is union, nonunion, or nonunion via temp | ||||||
7 | agency; | ||||||
8 | (4) trainee job retention statistics, including the | ||||||
9 | duration of employment (start and end dates of hires) by | ||||||
10 | race, gender, and geography; | ||||||
11 | (5) hourly wages, including hourly overtime pay rate, | ||||||
12 | and benefits of trainees placed into employment by race, | ||||||
13 | gender, and geography; | ||||||
14 | (6) percentage of jobs by race, gender, and geography | ||||||
15 | held by Program trainees or graduates that are full-time | ||||||
16 | equivalent positions, meaning that the position held is | ||||||
17 | full-time, direct, and permanent based on 2,080 hours | ||||||
18 | worked per year (paid directly by the employer, whose | ||||||
19 | activities, schedule, and manner of work the employer | ||||||
20 | controls, and receives pay and benefits in the same manner | ||||||
21 | as permanent employees); and | ||||||
22 | (7) qualitative data consisting of open-ended | ||||||
23 | reporting on pertinent issues, including, but not limited | ||||||
24 | to, qualitative descriptions accompanying metrics or | ||||||
25 | identifying key successes and challenges. | ||||||
26 | The Department shall also, on a quarterly basis, make the |
| |||||||
| |||||||
1 | program performance metrics provided under this subsection (c) | ||||||
2 | available to the public on its website and on the Program | ||||||
3 | website. | ||||||
4 | (d) Within 3 years after the effective date of this Act, | ||||||
5 | and subsequently at least once every 3 years thereafter, the | ||||||
6 | Department shall select an independent evaluator to review and | ||||||
7 | prepare a report on the performance of the Program and the | ||||||
8 | Regional Administrators. The evaluation shall be based on, but | ||||||
9 | not limited to, the quantitative and qualitative program | ||||||
10 | performance metrics specified in subsection (g) and objective | ||||||
11 | criteria developed through a comprehensive public stakeholder | ||||||
12 | process. In preparing the report, the independent evaluator | ||||||
13 | shall include participation and recommendations from persons | ||||||
14 | including, but not limited to, members of the Advisory Board, | ||||||
15 | additional Program participants who are not already serving as | ||||||
16 | members of the Advisory Board, and additional Program | ||||||
17 | stakeholders including organizations in environmental justice | ||||||
18 | communities and organizations serving low-income persons and | ||||||
19 | families. The report shall include a summary of the evaluation | ||||||
20 | of the Program, as well as an appendix including a review of | ||||||
21 | submitted recommendations and a compilation of reported | ||||||
22 | program performance metrics for the period covered by the | ||||||
23 | evaluation. The report shall be posted publicly on the | ||||||
24 | Department's website and the Program website, and shall be | ||||||
25 | used, as needed, to improve implementation of the Program. | ||||||
26 | Between evaluation due dates, the Department shall maintain |
| |||||||
| |||||||
1 | the necessary records and information required to satisfy the | ||||||
2 | evaluation requirements. | ||||||
3 | Section 5-525. Clean jobs curriculum. | ||||||
4 | (a) Within 90 days after the effective date of this Act, | ||||||
5 | the Department shall convene a comprehensive stakeholder | ||||||
6 | process that includes representatives from the Illinois State | ||||||
7 | Board of Education, the Illinois Community College Board, the | ||||||
8 | Department of Labor, community-based organizations, workforce | ||||||
9 | development providers, labor unions, building trades, | ||||||
10 | educational institutions, residents of BIPOC and low-income | ||||||
11 | communities, residents of environmental justice communities, | ||||||
12 | as well as clean energy businesses, nonprofit organizations, | ||||||
13 | worker-owned cooperatives, other groups that provide clean | ||||||
14 | energy jobs opportunities, and other participants to identify | ||||||
15 | the career pathways and training curriculum needed to prepare | ||||||
16 | workers to enter clean energy jobs as defined in Section 5-115 | ||||||
17 | and build careers. The curriculum shall: | ||||||
18 | (1) identify the core training curricular competency | ||||||
19 | areas needed to prepare workers to enter clean energy jobs | ||||||
20 | as defined in Section 5-115, such as those included in, | ||||||
21 | but not limited to, the Multi-Craft Core Curriculum, U.S. | ||||||
22 | Department of Labor Employment and Training | ||||||
23 | Administration-sponsored CareerOneStop Renewable Energy | ||||||
24 | Competency Model, the Electric Vehicle Infrastructure | ||||||
25 | Training Program; |
| |||||||
| |||||||
1 | (2) identify a set of certifications relevant for | ||||||
2 | clean energy job types to be included in respective | ||||||
3 | training programs and used to inform core training | ||||||
4 | Curricular competency areas, such as, but not limited to, | ||||||
5 | North American Board of Certified Energy Practitioners | ||||||
6 | (NABCEP) Board Certifications, Interstate Renewable Energy | ||||||
7 | Council (IREC) Accredited Certificate Programs, American | ||||||
8 | Society of Heating, Refrigerating and Air-Conditioning | ||||||
9 | Engineers (ASHRAE) ANSI/ISO accreditation standard | ||||||
10 | certifications, Electric Vehicle Infrastructure Training | ||||||
11 | Program Certifications, and UL Certification for EV | ||||||
12 | infrastructure; | ||||||
13 | (3) identify a set of required core cross-training | ||||||
14 | competencies provided in each training area for clean | ||||||
15 | energy jobs with the goal of enabling any trainee to | ||||||
16 | receive a standard set of skills common to multiple | ||||||
17 | training areas that would provide a foundation for | ||||||
18 | pursuing a career composed of multiple clean energy job | ||||||
19 | types; | ||||||
20 | (4) include approaches to integrate broad occupational | ||||||
21 | training to provide career entry into the general | ||||||
22 | construction and building trades sector and any remedial | ||||||
23 | education and work readiness support necessary to achieve | ||||||
24 | educational and professional eligibility thresholds; | ||||||
25 | (5) identify, directly or through references to | ||||||
26 | external resources, career pathways for clean energy jobs |
| |||||||
| |||||||
1 | types, such as, but not limited to, pathways identified | ||||||
2 | in: IREC Careers in Climate Control Technology Map, IREC | ||||||
3 | Solar Career Map for Workforce Training, NABCEP | ||||||
4 | Certification Career Map, and U.S. Department of Labor's | ||||||
5 | Bureau of Labor Statistics Green Jobs Initiative; and | ||||||
6 | (6) identify on-the-job training formats, where | ||||||
7 | relevant; and identify suggested trainer certification | ||||||
8 | standards, where relevant. | ||||||
9 | (b) Within 180 days after the stakeholder process is | ||||||
10 | convened, the Department shall publish a report that includes | ||||||
11 | the findings, recommendations, and core curriculum identified | ||||||
12 | by the stakeholder group and shall post a copy of the report on | ||||||
13 | its public website. The Department shall convene the process | ||||||
14 | described to update and modify the recommended curriculum | ||||||
15 | every 3 years to ensure the curriculum contents are current to | ||||||
16 | the evolving clean energy industries, practices, and | ||||||
17 | technologies. | ||||||
18 | (c) Organizations that receive funding to provide training | ||||||
19 | under the Clean Jobs Workforce Hubs Network Program, | ||||||
20 | including, but not limited to, community-based and labor-based | ||||||
21 | training providers, and educational institutions must use the | ||||||
22 | core curriculum that is developed under this Section. | ||||||
23 | Section 5-530. Funding. To provide direct, sustained | ||||||
24 | support for the Program, the Department shall be responsible | ||||||
25 | for overseeing the development and implementation of the |
| |||||||
| |||||||
1 | Program, and each year shall, subject to appropriation, | ||||||
2 | allocate at least $1,000,000 to each of the 16 community-based | ||||||
3 | organizations providing program elements at the 16 Hub Sites | ||||||
4 | described in this Act, including for the purposes of providing | ||||||
5 | Program elements through subcontracted entities. Funding of | ||||||
6 | $26,000,000 for the Program shall be made available from the | ||||||
7 | Energy Community Reinvestment Fund. | ||||||
8 | Section 5-535. Administrative review. All final | ||||||
9 | administrative decisions, including, but not limited to, | ||||||
10 | funding allocation and rules issued, made by the Department | ||||||
11 | under this Part are subject to judicial review under the | ||||||
12 | Administrative Review Law and its rules. No action may be | ||||||
13 | commenced under this Section prior to 60 days after the | ||||||
14 | complainant has given notice in writing of the action to the | ||||||
15 | Department. | ||||||
16 | Part 10. Expanding Clean Energy Entrepreneurship | ||||||
17 | and Contractor Incubator Network Program | ||||||
18 | Section 5-1001. Definitions. As used in this Part: | ||||||
19 | "Program" means the Expanding Clean Energy | ||||||
20 | Entrepreneurship and Contractor Incubator Network Program. | ||||||
21 | Section 5-1005. Expanding Clean Energy Entrepreneurship | ||||||
22 | and Contractor Incubator Network Program. |
| |||||||
| |||||||
1 | (a) The Department shall develop and, through Regional | ||||||
2 | Program Administrators, administer the Expanding Clean Energy | ||||||
3 | Entrepreneurship and Contractor Incubator Network Program to | ||||||
4 | create a network of 16 Program delivery Hub Sites with program | ||||||
5 | elements delivered by community-based organizations and their | ||||||
6 | subcontractors geographically distributed across the State. | ||||||
7 | (b) The Program shall provide direct and sustained support | ||||||
8 | for the development and growth of BIPOC participant | ||||||
9 | contractors and provide the needed resources for entities to | ||||||
10 | be able to effectively compete for, gain, and execute clean | ||||||
11 | energy-related projects that create clean energy jobs. The | ||||||
12 | Program shall provide direct and sustained support for a | ||||||
13 | portion of disadvantaged BIPOC contractors in the Program who | ||||||
14 | are previous graduates of the Clean Jobs Workforce Hubs | ||||||
15 | Network Program to further develop wealth-building | ||||||
16 | opportunities, and career paths in clean energy contracting | ||||||
17 | and the creation of clean energy jobs. | ||||||
18 | Section 5-1010. Expanding Clean Energy Entrepreneurship | ||||||
19 | and Contractor Incubator Network. | ||||||
20 | (a) The Department shall develop and, through Regional | ||||||
21 | Program Administrators, administer the Expanding Clean Energy | ||||||
22 | Entrepreneurship and Contractor Incubators Network. | ||||||
23 | (b) The Clean Energy Entrepreneurship and Contractor | ||||||
24 | Incubator Network Program shall be made up of 16 Program | ||||||
25 | delivery Hub Sites geographically distributed across the |
| |||||||
| |||||||
1 | State, including at least one Hub Site located in or near each | ||||||
2 | of the following areas: Chicago (South Side), Chicago | ||||||
3 | (Southwest Side), Waukegan, Rockford, Aurora, Joliet, Peoria, | ||||||
4 | Champaign, Danville, Decatur, Carbondale, East St. Louis, and | ||||||
5 | Alton. Three additional sites shall be determined by the | ||||||
6 | Department within 240 days after the effective date of this | ||||||
7 | Act based on a gap analysis identifying areas with high | ||||||
8 | concentrations of low-income residents, environmental justice | ||||||
9 | communities, and energy workers that are otherwise underserved | ||||||
10 | by the other 13 Hub Sites, as well as review of advisory | ||||||
11 | recommendations from the Advisory Board. One of the additional | ||||||
12 | sites shall be located in the Northern Illinois Program | ||||||
13 | Delivery Area covering Northern Illinois, one of the | ||||||
14 | additional sites shall be located in the Central Illinois | ||||||
15 | Program Delivery Area covering Central Illinois, and one of | ||||||
16 | the additional sites shall be located in the Southern Illinois | ||||||
17 | Program Delivery Area covering Southern Illinois as specified | ||||||
18 | in Part 1 of this Act. | ||||||
19 | (c) Program elements at each Hub Site shall be provided by | ||||||
20 | a local community-based organization that shall be initially | ||||||
21 | competitively selected by the Department within 330 days after | ||||||
22 | the effective date of this Act and shall be subsequently | ||||||
23 | competitively selected by the Department every 5 years. | ||||||
24 | Community-based organizations delivering program elements | ||||||
25 | required in subsection (d) of this Section may provide all of | ||||||
26 | the elements required at each Hub Site or may subcontract to |
| |||||||
| |||||||
1 | other entities for the provision of portions of program | ||||||
2 | elements, including, but not limited to, administrative soft | ||||||
3 | and hard skills for program participants, delivery of training | ||||||
4 | in the core curriculum, or the provision of other support | ||||||
5 | functions for program delivery compliance. The Regional | ||||||
6 | Administrators, with input from the Program Advisory Board, | ||||||
7 | shall develop uniform minimum contractual requirements for | ||||||
8 | competitively selected community-based organizations to | ||||||
9 | provide the Program, uniform minimum contractual requirements | ||||||
10 | for all Program subcontracts, and uniform templates for | ||||||
11 | requests for proposals for all Program subcontracts. | ||||||
12 | (d) The Expanding Clean Energy Entrepreneurship and | ||||||
13 | Contractor Incubator Network Program shall provide the | ||||||
14 | following program elements: | ||||||
15 | (1) access to low-cost capital for small and BIPOC | ||||||
16 | clean energy businesses and contractors to be able to | ||||||
17 | compete on a level playing field with more established, | ||||||
18 | capitalized businesses across the entire clean energy | ||||||
19 | sector in Illinois, including solar, wind, energy | ||||||
20 | efficiency, transportation, electrification, solar | ||||||
21 | thermal, geothermal, and other renewable energy | ||||||
22 | industries; | ||||||
23 | (2) support for obtaining financial assurance, | ||||||
24 | including, but not limited to: bonding; back office | ||||||
25 | services; insurance, permits, training and certifications; | ||||||
26 | business planning; and other needs that will allow BIPOC |
| |||||||
| |||||||
1 | participant contractors to effectively compete for clean | ||||||
2 | energy-related projects, incentive programs, and approved | ||||||
3 | vendor and qualified installer opportunities; | ||||||
4 | (3) development, mentoring, training, networking, and | ||||||
5 | other support needed to allow BIPOC participant | ||||||
6 | contractors to: (i) build their businesses and connect to | ||||||
7 | specific projects, (ii) register as approved vendors where | ||||||
8 | applicable, (iii) engage in approved vendor subcontracting | ||||||
9 | and qualified installer opportunities, (iv) Develop | ||||||
10 | partnering and networking skills, (v) compete for capital | ||||||
11 | and other resources, and (vi) execute clean energy-related | ||||||
12 | project installations and subcontracts; | ||||||
13 | (4) outreach and communications capability to ensure | ||||||
14 | that BIPOC participant contractors, community partners, | ||||||
15 | and potential contractor clients are aware of and engaged | ||||||
16 | in the Program; | ||||||
17 | (5) prevailing wage compliance training and back | ||||||
18 | office support to implement prevailing wage practices; and | ||||||
19 | (6) recruitment, communications, and ongoing | ||||||
20 | engagement with potential entities that hire contractors | ||||||
21 | and subcontractors, and program administrators of programs | ||||||
22 | providing renewable energy resource-related projects, | ||||||
23 | incentive programs, and approved vendor and qualified | ||||||
24 | installer opportunities, including, but not limited to, | ||||||
25 | activities such as matchmaking initiatives, hosting | ||||||
26 | events, and collaborating with other Hub Sites to identify |
| |||||||
| |||||||
1 | and implement best practices for engagement. | ||||||
2 | (e) Within 90 days after the effective date of this Act, | ||||||
3 | the Department shall competitively select a community-based | ||||||
4 | organization to assist with pre-Program launch public | ||||||
5 | communications and stakeholder tracking, which shall begin | ||||||
6 | within 120 days after the effective date of this Act and shall | ||||||
7 | continue through Program launch. The Department may elect to | ||||||
8 | initiate pre-Program communication of updates to the public | ||||||
9 | between the effective date of this Act and competitive | ||||||
10 | selection of a community-based organization to assist. | ||||||
11 | Pre-Program launch communications and stakeholder tracking | ||||||
12 | functions shall include, but are not limited to, the | ||||||
13 | following: (1) developing an initial email subscription list | ||||||
14 | so that interested stakeholders and interested members of the | ||||||
15 | public may sign up to receive email updates about the status of | ||||||
16 | Program implementation, (2) develop an initial basic website | ||||||
17 | including the initial email list subscription form and a page | ||||||
18 | where public pre-Program updates shall be posted, (3) develop | ||||||
19 | initial social media accounts where public pre-Program updates | ||||||
20 | shall be posted, and (4) coordinate with the Department, | ||||||
21 | Regional Administrators, and Advisory Board members to solicit | ||||||
22 | information for the purposes of updating the public, as | ||||||
23 | approved by the Department. Pre-Program updates shall include, | ||||||
24 | but are not limited to, information about implementation | ||||||
25 | timelines, selection of Hub Sites, selection of Advisory Board | ||||||
26 | members, selection of Regional Administrators, selection of |
| |||||||
| |||||||
1 | contracted organizations, updates from the Advisory Board, and | ||||||
2 | other significant Program Administration updates. Pre-Program | ||||||
3 | updates shall be disseminated to the public through the | ||||||
4 | website, email list, and social media accounts no less | ||||||
5 | frequently than monthly. Following Program launch, the | ||||||
6 | Department shall either (A) assume direct fulfillment of all | ||||||
7 | responsibilities of public communications and stakeholder | ||||||
8 | tracking directly or (B) elect to continue contracting with a | ||||||
9 | competitively selected community-based organization to provide | ||||||
10 | these functions and develop all initial functions into ongoing | ||||||
11 | Program functions. If the Department elects to continue to | ||||||
12 | competitively contract these functions, the Department may | ||||||
13 | either (i) extend the contract to the competitively selected | ||||||
14 | community-based organization delivering the functions during | ||||||
15 | the pre-Program launch period, and may do so for a period to be | ||||||
16 | determined by the Department, but not to exceed 2 years | ||||||
17 | following Program launch, or (ii) elect to competitively | ||||||
18 | select another community-based organization to fulfill | ||||||
19 | communications and stakeholder tracking functions. The | ||||||
20 | Department shall subsequently competitively select a | ||||||
21 | community-based organization to fulfill communications and | ||||||
22 | stakeholder tracking functions once every 2 years. | ||||||
23 | Section 5-1015. Regional administrators. | ||||||
24 | (a) The Clean Energy Entrepreneurship and Contractor | ||||||
25 | Incubator Network Program shall be administered by 3 Regional |
| |||||||
| |||||||
1 | Administrators as described in Section 5-130 of Part 1 of this | ||||||
2 | Act. In addition, the Regional Administrators shall administer | ||||||
3 | the Departments loan and grant programs, where relevant, as | ||||||
4 | specified in subsection (a) of Section 5-1010 of this Part. | ||||||
5 | (b) The Advisory Board shall have the duties given to it by | ||||||
6 | the Part 1 of this Act as they relate to the Program. In | ||||||
7 | addition, the Advisory Board shall provide recommendations to | ||||||
8 | the Department to complement the gap analysis and selection of | ||||||
9 | 3 Primary Hub Sites as specified in Section 5-130 of Part 1 of | ||||||
10 | this Act. | ||||||
11 | (c) The Department shall require submission of quarterly | ||||||
12 | reports including program performance metrics by each Hub Site | ||||||
13 | to the Regional administrator of their Program Delivery Area | ||||||
14 | as specified in subsection (a) of Section 5-1015 in a time and | ||||||
15 | manner prescribed by the Department. Each Regional | ||||||
16 | Administrator shall collect, track, and simultaneously submit | ||||||
17 | quarterly reports to the Department and the Advisory Board, | ||||||
18 | including program performance metrics reported in a format | ||||||
19 | that allows for review of the metrics both (i) for each | ||||||
20 | individual Hub Site and (ii) aggregated by Program Delivery | ||||||
21 | Area. Each Regional Administrator shall provide technical | ||||||
22 | assistance to each individual Hub Site in their Program | ||||||
23 | Delivery Area in building systems and capacity to collect | ||||||
24 | data. Program performance metrics include, but are not limited | ||||||
25 | to, the following information collected for each Program | ||||||
26 | participant: |
| |||||||
| |||||||
1 | (1) demographic data, including racial, gender, and | ||||||
2 | geographic distribution data, on BIPOC participant | ||||||
3 | contractors entering and graduating the Program; | ||||||
4 | (2) number of projects completed by BIPOC participant | ||||||
5 | contractors, solo or in partnership; | ||||||
6 | (3) number of partnerships with BIPOC participant | ||||||
7 | contractors that are expected to result in contracts for | ||||||
8 | work by the BIPOC participant contractor; | ||||||
9 | (4) changes, including growth, in BIPOC participant | ||||||
10 | contractors' business revenue; | ||||||
11 | (5) number of new hires by BIPOC participant | ||||||
12 | contractors; | ||||||
13 | (6) demographic data, including racial, gender, and | ||||||
14 | geographic distribution data as well as average wage data, | ||||||
15 | for new hires by BIPOC participant contractors; | ||||||
16 | (7) demographic data, including racial, gender, and | ||||||
17 | geographic distribution data of ownership of BIPOC | ||||||
18 | participant contractors; | ||||||
19 | (8) certifications held by BIPOC participant | ||||||
20 | contractors, including, but not limited to, registration | ||||||
21 | under Business Enterprise for Minorities, Women, and | ||||||
22 | Persons with Disabilities Act program and other programs | ||||||
23 | intended to certify BIPOC entities; | ||||||
24 | (9) number of Program sessions attended by BIPOC | ||||||
25 | participant contractors; | ||||||
26 | (10) indicators relevant for assessing general |
| |||||||
| |||||||
1 | financial health of BIPOC participant contractors; and | ||||||
2 | (11) qualitative data consisting of open-ended | ||||||
3 | reporting on pertinent issues, including, but not limited | ||||||
4 | to, qualitative descriptions accompanying metrics or | ||||||
5 | identifying key successes and challenges. | ||||||
6 | The Department shall, on a quarterly basis, make program | ||||||
7 | performance metrics provided under this subsection (g) | ||||||
8 | available to the public on its website and on the Program | ||||||
9 | website. | ||||||
10 | (d) Within 3 years after the effective date of this Act, | ||||||
11 | and subsequently at least once every 3 years, the Department | ||||||
12 | shall select an independent evaluator to evaluate and prepare | ||||||
13 | a report on the performance of the Program and Regional | ||||||
14 | Administrators. The evaluation shall be based on the | ||||||
15 | quantitative and qualitative program performance metrics and | ||||||
16 | reports specified in subsection (g) and objective criteria | ||||||
17 | developed through a comprehensive public stakeholder process. | ||||||
18 | The process shall include participation and recommendations | ||||||
19 | from Program participants, Advisory Board members, additional | ||||||
20 | current and former Program participants who are not already | ||||||
21 | serving as members of the Advisory Board, and additional | ||||||
22 | Program stakeholders, including organizations in environmental | ||||||
23 | justice communities and serving low-income persons and | ||||||
24 | families. The report shall include a summary of the evaluation | ||||||
25 | of the Program, as well as an appendix that includes a review | ||||||
26 | of submitted recommendations and a compilation of reported |
| |||||||
| |||||||
1 | program performance metrics for the period covered by the | ||||||
2 | evaluation. The report shall be posted publicly on the | ||||||
3 | Department's website and shall be used, as needed, to improve | ||||||
4 | implementation of the Program. The Department shall maintain | ||||||
5 | the necessary information and records required to satisfy the | ||||||
6 | evaluation requirements. | ||||||
7 | Section 5-1020. Jobs and Environmental Justice Grant | ||||||
8 | Program. | ||||||
9 | (a) In order to provide upfront capital to support the | ||||||
10 | development of projects, businesses, community organizations, | ||||||
11 | and jobs creating opportunity for Black, Indigenous, and | ||||||
12 | People of Color, the Program shall create and administer a | ||||||
13 | Jobs and Environmental Justice Grant Program. The grant | ||||||
14 | program shall be designed to help remove barriers to project, | ||||||
15 | community, and business development caused by a lack of | ||||||
16 | capital. | ||||||
17 | (b) The grant program shall provide grant awards of up to | ||||||
18 | $1 million per application to support the development of | ||||||
19 | renewable energy resources as defined in Section 1-75 of the | ||||||
20 | Illinois Power Agency Act, and Energy Efficiency projects as | ||||||
21 | defined in Sections 8-103B and 8-104.1 of the Public Utilities | ||||||
22 | Act. The amount of a grant award shall be based on a project | ||||||
23 | size and scope. Grants shall be provided upfront, in advance | ||||||
24 | of other incentives, to provide businesses and organizations | ||||||
25 | with capital needed to plan, develop, and execute a project. |
| |||||||
| |||||||
1 | Grants shall be designed to coordinate with and supplement | ||||||
2 | existing incentive programs, such as the Adjustable Block | ||||||
3 | Program, the Solar for All Program, the Community Solar | ||||||
4 | Program, and renewable energy procurements as described in the | ||||||
5 | Illinois Power Agency Act, as well as utility Energy | ||||||
6 | Efficiency programs as described in Sections 8-103B and | ||||||
7 | 8-104.1 of the Public Utilities Act. | ||||||
8 | (c) Grants shall be awarded to businesses and nonprofit | ||||||
9 | organizations for costs related to the following activities | ||||||
10 | and project needs: | ||||||
11 | (1) planning and project development, including costs | ||||||
12 | for professional services such as architecture, design, | ||||||
13 | engineering, auditing, consulting, and developer services; | ||||||
14 | (2) project application, deposit, and approval; | ||||||
15 | (3) purchasing and leasing of land; | ||||||
16 | (4) permitting and zoning; | ||||||
17 | (5) interconnection application costs and fees, | ||||||
18 | studies, and expenses; | ||||||
19 | (6) equipment and supplies; | ||||||
20 | (7) community outreach, marketing, and engagement; | ||||||
21 | (8) staff and operations expenses. | ||||||
22 | (d) Grants shall be awarded for projects that meet the | ||||||
23 | following criteria: | ||||||
24 | (1) provide community benefit, defined as greater than | ||||||
25 | 50% of the project's energy provided or saved that | ||||||
26 | benefits low-income residents, not-for-profit |
| |||||||
| |||||||
1 | organizations providing services to low-income households, | ||||||
2 | affordable housing owners, or community-based limited | ||||||
3 | liability companies providing services to low-income | ||||||
4 | households. In the case of Community Solar projects, | ||||||
5 | projects must provide preferential or exclusive access for | ||||||
6 | local subscribers or donated power; | ||||||
7 | (2) are located in environmental justice communities, | ||||||
8 | as that term has been defined based on existing | ||||||
9 | methodologies and findings used by the Illinois Power | ||||||
10 | Agency and its Administrator of the Illinois Solar for All | ||||||
11 | Program; | ||||||
12 | (3) provide on-the-job training, as time and scope | ||||||
13 | permits; | ||||||
14 | (4) contract with contractors who are participating or | ||||||
15 | have participated in the Expanding Clean Energy | ||||||
16 | Entrepreneurship and Contractor Incubators Network | ||||||
17 | Program, or similar programs, for a minimum of 50% of | ||||||
18 | project costs; and | ||||||
19 | (5) employ a minimum of 51% of its workforce from | ||||||
20 | participants and graduates of the Clean Jobs Workforce | ||||||
21 | Hubs Network Program and Returning Residents Program as | ||||||
22 | described in this Act. | ||||||
23 | (e) Grants shall be awarded to applicants that meet the | ||||||
24 | following criteria: | ||||||
25 | (1) achieve a minimum of 105 points in the equity | ||||||
26 | points systems described in paragraph (7) of subsection |
| |||||||
| |||||||
1 | (c) of Section 1-75 of the Illinois Power Agency Act, or | ||||||
2 | meet the equity building criteria in paragraph (9.5) of | ||||||
3 | subsection (g) of Section 8-103B of the Public Utilities | ||||||
4 | Act or in paragraph (9.5) of subsection (j) of Section | ||||||
5 | 8-104.1 of the Public Utilities Act; and | ||||||
6 | (2) provide demonstrable proof of a historical or | ||||||
7 | future, and persisting, long-term partnership with the | ||||||
8 | community in which the project will be located. | ||||||
9 | (f) The application process for the grant program shall | ||||||
10 | not be burdensome on applicants, nor require extensive | ||||||
11 | technical knowledge, and be able to be completed on less than 4 | ||||||
12 | standard letter-sized pages. | ||||||
13 | (g) The Program shall coordinate its grant program with | ||||||
14 | the Clean Energy Jobs and Justice Fund to coordinate grants | ||||||
15 | under this program with low-interest and no-interest financing | ||||||
16 | opportunities offered by the fund. | ||||||
17 | (h) The grant program shall have a budget of $20,000,000 | ||||||
18 | per year, for a minimum of 4 years, and continued after that | ||||||
19 | until funds are no longer available or the program is ended by | ||||||
20 | the Department. | ||||||
21 | Section 5-1025. Funding. To provide direct, sustained | ||||||
22 | support for the Program, the Department shall be responsible | ||||||
23 | for overseeing the development and implementation of the | ||||||
24 | Program, and each year shall, subject to appropriation, | ||||||
25 | allocate at least $800,000 to each of the 16 community-based |
| |||||||
| |||||||
1 | organizations providing program elements at the 16 Hub Sites | ||||||
2 | described in this Act, including for the purposes of providing | ||||||
3 | program elements through subcontracted entities. Funding of | ||||||
4 | $21,000,000 per year for the Program shall be made available | ||||||
5 | from the Energy Community Reinvestment Fund, and funding of | ||||||
6 | $20,000,000 per year for the Jobs and Environmental Justice | ||||||
7 | Grant Program shall be made available from the Energy | ||||||
8 | Community Reinvestment Fund. | ||||||
9 | Section 5-1030. Administrative review. All final | ||||||
10 | administrative decisions, including, but not limited to | ||||||
11 | funding allocation and rules issued, made by the Department | ||||||
12 | under this Part are subject to judicial review under the | ||||||
13 | Administrative Review Law and its rules. No action may be | ||||||
14 | commenced under this Section prior to 60 days after the | ||||||
15 | complainant has given notice in writing of the action to the | ||||||
16 | Department. | ||||||
17 | Part 15. Illinois Clean Energy Black, Indigenous, and People | ||||||
18 | of Color Primes Contractor Accelerator | ||||||
19 | Section 5-1501. Definitions. As used in this Part: | ||||||
20 | "Approved Vendor" means the definition of that term used | ||||||
21 | and as may be updated by the Illinois Power Agency. | ||||||
22 | "Contractor Incubator" means an incubator authorized under | ||||||
23 | Part 10 of this Act. |
| |||||||
| |||||||
1 | "Illinois Clean Energy Jobs and Justice Fund" means the | ||||||
2 | fund created in the Illinois Clean Energy Jobs and Justice | ||||||
3 | Fund Act. | ||||||
4 | "Mentor Company" means a private company selected to | ||||||
5 | provide business mentorship to Program participants as | ||||||
6 | described in Section 5-1535 of this Part.
| ||||||
7 | "Minority Business" means a minority-owned business as | ||||||
8 | described in Section 2 of the Business Enterprise for | ||||||
9 | Minorities, Women, and Persons with Disabilities Act. | ||||||
10 | "Minority Business Enterprise certification" means the | ||||||
11 | certification or recognition certification affidavit from the | ||||||
12 | State of Illinois Department of Central Management Services | ||||||
13 | Business Enterprise Program or a program with equivalent | ||||||
14 | requirements more narrowly tailored to the needs of prime | ||||||
15 | contractors. | ||||||
16 | "Primes Program Administrator" means the entity or person | ||||||
17 | selected to be responsible for management of the Program as | ||||||
18 | established in Section 5-1505 of this Part. | ||||||
19 | "Regional Primes Program Lead" means the entity or person | ||||||
20 | selected to be responsible for management of the Program as | ||||||
21 | established in Section 5-1505 of this Part. | ||||||
22 | "Program" means the Illinois Clean Energy Black, | ||||||
23 | Indigenous, and People of Color Primes Contractor Accelerator | ||||||
24 | Program. | ||||||
25 | "Participant" means the persons and organizations selected | ||||||
26 | to participate in the Program. |
| |||||||
| |||||||
1 | "Returning Resident" is defined as in Part 20 of this Act. | ||||||
2 | "Workforce Hub" means a workforce training program | ||||||
3 | authorized under Part 5 of this Act. | ||||||
4 | Section 5-1505. Illinois Clean Energy Black, Indigenous, | ||||||
5 | and People of Color Primes Contractor Accelerator Program | ||||||
6 | components. | ||||||
7 | (a) The Department of Commerce and Economic Opportunity | ||||||
8 | shall create and implement, consistent with the requirements | ||||||
9 | of this Part, an Illinois Clean Energy Black, Indigenous, and | ||||||
10 | People of Color Primes Contractor Accelerator. The offerings | ||||||
11 | for Program participants shall include the following: | ||||||
12 | (1) a 5-year, 6-month progressive course of one-on-one | ||||||
13 | coaching designed to assist each participant in developing | ||||||
14 | an achievable five-year business plan, including review of | ||||||
15 | monthly metrics, advice on achieving the Program | ||||||
16 | participant's goals such as obtaining relevant business | ||||||
17 | certifications and preparing for prime contracting | ||||||
18 | opportunities; | ||||||
19 | (2) operational support grants not to exceed $1 | ||||||
20 | million annually; | ||||||
21 | (3) interest-free and low-interest loans available | ||||||
22 | through the Illinois Clean Energy Jobs and Justice Fund or | ||||||
23 | comparable financial mechanism; | ||||||
24 | (4) business coaching by outside consultants, based on | ||||||
25 | the participant's individual needs; |
| |||||||
| |||||||
1 | (5) a mentorship of approximately 2 years provided by | ||||||
2 | a qualified company in the participant's field; | ||||||
3 | (6) full access to Contractor Incubator services | ||||||
4 | including courses and workshops, informational briefings | ||||||
5 | about opportunities created by the Clean Energy Jobs Act | ||||||
6 | and other Illinois focused clean energy opportunities, | ||||||
7 | access to jobs and project portals, contractor networking, | ||||||
8 | job fairs, and monthly contractor cohort meetings; | ||||||
9 | (7) technical assistance with applying for Minority | ||||||
10 | Business Enterprise certification and other relevant | ||||||
11 | certifications as well as Approved Vendor status for | ||||||
12 | Illinois programs offered by utilities or other similar | ||||||
13 | entities; | ||||||
14 | (8) technical assistance with preparing bids and | ||||||
15 | Request for Proposal applications for programs created by | ||||||
16 | the Clean Energy Jobs Act and other Illinois focused clean | ||||||
17 | energy opportunities; | ||||||
18 | (9) opportunities to participate in procurement | ||||||
19 | programs organized by the Department to provide bulk | ||||||
20 | discounts on tools, equipment, and supplies; and | ||||||
21 | (10) opportunities to be listed in any relevant | ||||||
22 | directories and databases organized by the Department. | ||||||
23 | (b) The Department and Primes Program Administrator shall | ||||||
24 | coordinate Program events and training designed to connect the | ||||||
25 | Program participants with the programs created in Parts II and | ||||||
26 | III of this Act. |
| |||||||
| |||||||
1 | (c) The Department and Primes Program Administrator shall | ||||||
2 | coordinate with the Illinois Power Agency's Adjustable Block | ||||||
3 | Program and Illinois Solar For All program to connect Program | ||||||
4 | participants with funding opportunities created by the | ||||||
5 | Adjustable Block Program and Illinois Solar For All program. | ||||||
6 | (d) The Department and Primes Program Administrator shall | ||||||
7 | coordinate with the electric, gas and water utilities to | ||||||
8 | connect Program participants with Approved Vendor and other | ||||||
9 | service provider and incentive opportunities in areas | ||||||
10 | including energy efficiency and electric vehicles. | ||||||
11 | (e) The Department and Primes Program Administrator shall | ||||||
12 | coordinate financial development assistance programs such as | ||||||
13 | zero- and low-interest loans with the Illinois Clean Energy | ||||||
14 | Jobs and Justice Fund or a comparable financing mechanism. The | ||||||
15 | Department and Primes Program Administrator shall retain | ||||||
16 | authority to determine loan repayment terms and conditions. | ||||||
17 | Section 5-1510. Program administration. | ||||||
18 | (a) The Department shall, in consultation with the | ||||||
19 | Advisory Board, hire or contract a Primes Program | ||||||
20 | Administrator within 180 days after the effective date of this | ||||||
21 | Act. | ||||||
22 | (b) The Department shall select a Primes Program | ||||||
23 | Administrator with the following qualifications: | ||||||
24 | (1) experience running a large contractor-based or | ||||||
25 | Approved Vendor business in Illinois; |
| |||||||
| |||||||
1 | (2) experience coaching businesses; | ||||||
2 | (3) experience participating in or managing a | ||||||
3 | mentorship program; | ||||||
4 | (4) experience in the Illinois clean energy industry; | ||||||
5 | (5) experience working with diverse, underserved, and | ||||||
6 | environmental justice communities; and | ||||||
7 | (6) experience working with or participating in | ||||||
8 | businesses owned by BIPOC persons. | ||||||
9 | (c) Responsibilities of the Primes Program Administrator. | ||||||
10 | The Primes Program Administrator shall be responsible for the | ||||||
11 | following: | ||||||
12 | (1) managing the Regional Primes Program Leads to | ||||||
13 | develop an 18-month Program budget as well as a 6-year | ||||||
14 | forecast to guide expenditures in the regions; | ||||||
15 | (2) working with the Regional Primes Program Leads to | ||||||
16 | design a Program application including a shareable | ||||||
17 | description of how participants will be selected; | ||||||
18 | (3) working with the Regional Primes Program Leads and | ||||||
19 | the partners in the programs described in Parts 5 and 10 of | ||||||
20 | this Act to publicize the Program; | ||||||
21 | (4) working with the Regional Primes Program Leads and | ||||||
22 | the Advisory Board to implement the recommendations on | ||||||
23 | acceptance of potential Program participants and awarded | ||||||
24 | funding; | ||||||
25 | (5) working with the Regional Primes Program Leads to | ||||||
26 | design and implement a mentorship program including |
| |||||||
| |||||||
1 | stipend level recommendations and guidelines for any | ||||||
2 | Mentor Company-mentee profit sharing or purchased services | ||||||
3 | agreements; | ||||||
4 | (6) working with the Regional Primes Program Leads to | ||||||
5 | ensure participants are quickly on-boarded into the | ||||||
6 | Program and begin tapping Program resources; | ||||||
7 | (7) collecting and reporting metrics related to cohort | ||||||
8 | recruiting and formation to the Department and the | ||||||
9 | Advisory Board; | ||||||
10 | (8) reviewing the work plans and annual goals of all | ||||||
11 | participants. Reviewing all approved Mentor Companies and | ||||||
12 | the stipends they will be awarded; | ||||||
13 | (9) conducting an annual assessment of the mentorship | ||||||
14 | program including Mentor Company and mentee interviews, | ||||||
15 | Mentor Company and mentee satisfaction ratings, and input | ||||||
16 | from the Regional Primes Program Leads and creating a | ||||||
17 | consolidated report for Department and the Advisory Board; | ||||||
18 | (10) consolidating and reporting metrics related to | ||||||
19 | participant contractor engagement in other Illinois clean | ||||||
20 | energy programs such as the Adjustable Block Program, | ||||||
21 | Illinois Solar for All, and the utility-run energy | ||||||
22 | efficiency and electric vehicle programs; | ||||||
23 | (11) reviewing each participant's annual progress | ||||||
24 | through the Program and any recommendations from the | ||||||
25 | Regional Primes Program Lead about whether the participant | ||||||
26 | should continue in the Program, be considered a Program |
| |||||||
| |||||||
1 | graduate, and whether adjustments to ongoing and future | ||||||
2 | grant money, loans and Contractor Incubator service access | ||||||
3 | are needed; and | ||||||
4 | (12) other duties as required to effectively and | ||||||
5 | equitably administer the Program. | ||||||
6 | (d) Within 90 days after being hired, the Primes Program | ||||||
7 | Administrator, in consultation with the Department and the | ||||||
8 | Advisory Board, shall contract with 3 Regional Primes Program | ||||||
9 | Leads. The Regional Primes Program Leads will report directly | ||||||
10 | to the Primes Program Administrator. | ||||||
11 | (e) The Regional Primes Program Leads selected by the | ||||||
12 | Primes Program Administrator shall have the following | ||||||
13 | qualifications: | ||||||
14 | (1) experience running a large contracting or Approved | ||||||
15 | Vendor business in Illinois; | ||||||
16 | (2) experience in the Illinois clean energy industry; | ||||||
17 | (3) experience coaching businesses; | ||||||
18 | (4) experience with a mentorship program; | ||||||
19 | (5) relationships with suitable potential Mentor | ||||||
20 | Companies in the region; | ||||||
21 | (6) experience working with diverse, underserved, and | ||||||
22 | environmental justice communities; | ||||||
23 | (7) experience working with or participating in | ||||||
24 | businesses owned by BIPOC persons; and | ||||||
25 | (8) ability and willingness to be located within the | ||||||
26 | region they will be leading. |
| |||||||
| |||||||
1 | (f) The Regional Primes Program Leads shall have the | ||||||
2 | following responsibilities: | ||||||
3 | (1) developing Program marketing materials and working | ||||||
4 | with the Workforce Hubs and Contractor Incubators in the | ||||||
5 | region and their community partners to publicize the | ||||||
6 | Program. The budget shall include funds to pay | ||||||
7 | community-based organizations with a track record of | ||||||
8 | working with diverse, underserved, and environmental | ||||||
9 | justice communities to complete this work; | ||||||
10 | (2) recruiting qualified Program applicants; | ||||||
11 | (3) assisting Program applicants in understanding and | ||||||
12 | completing the application process; | ||||||
13 | (4) coordinating with the Department and the Advisory | ||||||
14 | Board to select qualified applicants for Program | ||||||
15 | participation and determine how to allocate funding among | ||||||
16 | selected participants; | ||||||
17 | (5) introducing participants to the Program offerings; | ||||||
18 | (6) upon entry of each Program participant and each | ||||||
19 | year thereafter, conducting a detailed assessment with | ||||||
20 | each participant to identify needed training, coaching, | ||||||
21 | and other Program services; | ||||||
22 | (7) upon entry of each Program participant and each | ||||||
23 | year thereafter, assisting each participant in developing | ||||||
24 | goals in terms of each Program element, and assessing | ||||||
25 | progress toward meeting the goals established in previous | ||||||
26 | years' work plans; |
| |||||||
| |||||||
1 | (8) assisting Program participants in receiving their | ||||||
2 | Minority Business Enterprise certification and any other | ||||||
3 | relevant certifications and Approved Vendor statuses; | ||||||
4 | (9) matching each participant with Contractor | ||||||
5 | Incubator offerings and individualized expert coaching, | ||||||
6 | including training on working with returning residents and | ||||||
7 | the second chance companies that employ them, as needed; | ||||||
8 | (10) pairing each Program participant with a Mentor | ||||||
9 | Company; | ||||||
10 | (11) facilitating connections between each Program | ||||||
11 | participant to potential subcontractors and employees; | ||||||
12 | (12) dispensing each participant's awarded operational | ||||||
13 | grant funding; | ||||||
14 | (13) connecting each participant to zero- and | ||||||
15 | low-interest loans from the Illinois Clean Energy Jobs and | ||||||
16 | Justice Fund or a comparable financing mechanism; | ||||||
17 | (14) ensuring that each participant applies for | ||||||
18 | appropriate project opportunities funded by the State of | ||||||
19 | Illinois or businesses or individuals located within | ||||||
20 | Illinois; | ||||||
21 | (15) reviewing each participant's progress through the | ||||||
22 | Program and making a recommendation to the Department and | ||||||
23 | the Advisory Board about whether the participant should | ||||||
24 | continue in the Program, be considered a Program graduate, | ||||||
25 | and whether adjustments to ongoing and future grant | ||||||
26 | funding, loans and related service access overseen by the |
| |||||||
| |||||||
1 | Advisory Board are needed; and | ||||||
2 | (16) other duties as required to effectively and | ||||||
3 | equitably administer the Program. | ||||||
4 | Section 5-1515. Eligibility for program participation. | ||||||
5 | (a) The Program will accept applications to become Program | ||||||
6 | participants from any person with the following | ||||||
7 | qualifications: | ||||||
8 | (1) 2 or more years of experience in a clean energy or | ||||||
9 | a related contracting field; | ||||||
10 | (2) at least $5,000 in annual business; and | ||||||
11 | (3) businesses with Minority Business Enterprise | ||||||
12 | certification or recognition certification affidavit from | ||||||
13 | the State of Illinois Department of Central Management | ||||||
14 | Services Business Enterprise program or that meet the | ||||||
15 | definition of a minority-owned business as described in | ||||||
16 | Section 2 of the Business Enterprise for Minorities, Women | ||||||
17 | and Persons with Disabilities Act. | ||||||
18 | (b) Applicants for Program participation shall be allowed | ||||||
19 | to reapply for a future cohort if they are not selected for | ||||||
20 | participation, and the Primes Program Administrator shall | ||||||
21 | inform each applicant of this option. | ||||||
22 | Section 5-1520. Participant selection. | ||||||
23 | (a) Each region will select a new cohort of participant | ||||||
24 | contractors every 18 months. |
| |||||||
| |||||||
1 | (b) Each regional cohort will include between 3 and 5 | ||||||
2 | participants. | ||||||
3 | (c) The application for positions as a program participant | ||||||
4 | shall be standardized across regions and require the following | ||||||
5 | information: | ||||||
6 | (1) company history, financial information, and | ||||||
7 | visibility; | ||||||
8 | (2) list of up to the 5 most recent years' projects | ||||||
9 | with basic information including customer names and | ||||||
10 | locations, partner names if any, community profit-sharing | ||||||
11 | arrangements if any, and total revenues, payroll expenses | ||||||
12 | and subcontracting expenses; | ||||||
13 | (3) list of future projects, if any, with same details | ||||||
14 | as the paragraph (2); | ||||||
15 | (4) a year-by-year plan showing how program-requested | ||||||
16 | operational grants, program-requested zero-interest and | ||||||
17 | low-interest loans and self-funding, private investments | ||||||
18 | and completed project profits will create growth for the | ||||||
19 | applicant company; and | ||||||
20 | (5) details on partnerships, including any | ||||||
21 | community-based organizations partnership for workforce | ||||||
22 | development, subscriber recruitment and conducting | ||||||
23 | information sessions as well as subcontracting | ||||||
24 | relationships and sources of private capital. Projected | ||||||
25 | spending shall be included for these items. | ||||||
26 | (d) Applicants will be scored up to 50 points based on the |
| |||||||
| |||||||
1 | components outlined in subsection (c). | ||||||
2 | (e) Application who designate themselves as energy | ||||||
3 | efficiency applicants can be awarded additional points as | ||||||
4 | follows: | ||||||
5 | (1) Up to 15 points based on projected hiring and | ||||||
6 | industry job creation via subcontracting year-by-year, | ||||||
7 | including description of wages, salaries and benefits; | ||||||
8 | (2) Up to 15 points based on a clear vision of growing | ||||||
9 | the business in a strategic way; | ||||||
10 | (3) Up to 10 points based on a clear vision of how | ||||||
11 | increased capitalization would benefit the business; | ||||||
12 | (4) Up to 10 points based on past project performance | ||||||
13 | in the areas of work quality, adherence to best practices | ||||||
14 | and demonstration of technical knowledge; | ||||||
15 | (f) Applications who do not designate themselves as energy | ||||||
16 | efficiency applicants pursuant to paragraph (e) of this | ||||||
17 | Section can be awarded additional points as follows: | ||||||
18 | (1) Up to 10 points based on outside capital and | ||||||
19 | capacity the applicant is anticipated to bring to project | ||||||
20 | development; | ||||||
21 | (2) Up to 10 points based on ratio of grants to loans | ||||||
22 | requested as a measure of how much of the risk the | ||||||
23 | applicant is willing to assume; | ||||||
24 | (3) Up to 10 points based on the anticipated revenues | ||||||
25 | from future projects; | ||||||
26 | (4) Up to 10 points based on projected hiring and |
| |||||||
| |||||||
1 | industry job creation via subcontracting year-by-year, | ||||||
2 | including description of wages, salaries and benefits; | ||||||
3 | (5) Up to 10 points based on any model proposed to | ||||||
4 | build wealth in the larger underserved community through | ||||||
5 | profit sharing, transfer of asset ownership (such as solar | ||||||
6 | panels) and other means. | ||||||
7 | (g) The Primes Program Administrator shall select Program | ||||||
8 | participants based on the application score, the Program's | ||||||
9 | ability to accommodate the requested grants and loans, and the | ||||||
10 | expectation of a contractor cohort that approximates the | ||||||
11 | racial diversity in the region. The Primes Program | ||||||
12 | Administrator shall cap contractors in the energy efficiency | ||||||
13 | sector at 50% of available cohort spots and 50% of available | ||||||
14 | grants and loans if possible. | ||||||
15 | (h) Regional Primes Program Leads shall review | ||||||
16 | applications, conduct one-on-one interviews, and, if possible, | ||||||
17 | visit work sites of promising candidates. | ||||||
18 | (i) Regional Primes Program Leads shall recommend a cohort | ||||||
19 | of selected contractors and a corresponding budget to the | ||||||
20 | Primes Program Administrator for final approval. Applicants | ||||||
21 | not recommended for approval are allowed to petition the | ||||||
22 | Primes Program Administrator, the Department and the Advisory | ||||||
23 | Board for consideration. | ||||||
24 | (j) Regional Primes Program Leads shall make cohort | ||||||
25 | recommendations to the Primes Program Administrator, the | ||||||
26 | Department and the Advisory Board. Applicants may be asked to |
| |||||||
| |||||||
1 | make a short presentation to the Department and the Advisory | ||||||
2 | Board prior to a final determination on acceptance. Final | ||||||
3 | selection of contractor participants rests with the | ||||||
4 | Department. | ||||||
5 | Section 5-1525. Metrics and goals for program | ||||||
6 | participants. | ||||||
7 | (a) Upon each participant's acceptance into the Program, | ||||||
8 | the Regional Primes Program Leads shall solicit, and Program | ||||||
9 | participants shall be required to provide, the following | ||||||
10 | information to prepare a baseline report on the Program | ||||||
11 | participant's business: | ||||||
12 | (1) information necessary to understand the financial | ||||||
13 | health of the Program participant; | ||||||
14 | (2) income from past project development; | ||||||
15 | (3) the certifications that the Program participant is | ||||||
16 | seeking to obtain; | ||||||
17 | (4) employee data including salaries, length of | ||||||
18 | service and demographics; | ||||||
19 | (5) subcontractor data including demographics (if | ||||||
20 | available or applicable); and | ||||||
21 | (6) community profit-sharing and joint ownership data | ||||||
22 | (if available or applicable). | ||||||
23 | (b) The Regional Primes Program Leads shall to the | ||||||
24 | greatest extent practical establish a monthly metric reporting | ||||||
25 | system with each of the participating contractors and track |
| |||||||
| |||||||
1 | the metrics for progress against the contractor's work plan | ||||||
2 | and Program goals. Regional Primes Program Leads shall | ||||||
3 | compile, and require Program participants to provide | ||||||
4 | information for, the following metrics on a monthly basis: | ||||||
5 | (1) information necessary to understand the financial | ||||||
6 | health of the Program participant; | ||||||
7 | (2) information about project development including | ||||||
8 | bids submitted, projects started, projects completed and | ||||||
9 | related project-based expenses and income, and the | ||||||
10 | percentage of projects where contractor is acting as the | ||||||
11 | prime contractor; | ||||||
12 | (3) the certifications that the Program participant is | ||||||
13 | seeking to obtain and progress in obtaining those | ||||||
14 | certifications; | ||||||
15 | (4) employee data including salaries, length of | ||||||
16 | service and demographics, as well as whether any newly | ||||||
17 | hired employees are graduates of programs contained in the | ||||||
18 | Clean Jobs Workforce Hub Act; | ||||||
19 | (5) subcontractor data (if applicable) including | ||||||
20 | demographics, details on salaries, length of service and | ||||||
21 | demographics of any industry jobs created, and whether the | ||||||
22 | subcontractors are participants in or graduates of | ||||||
23 | programs contained in Part 10 of this Act; | ||||||
24 | (6) community profit-sharing and joint ownership data | ||||||
25 | (if available or applicable); | ||||||
26 | (7) amounts of grants and loans provided through the |
| |||||||
| |||||||
1 | Program; | ||||||
2 | (8) log of completed Program activities including | ||||||
3 | personalized training, coaching, and approximate hours of | ||||||
4 | Program support; | ||||||
5 | (9) log of interaction with the participant's Mentor | ||||||
6 | Company and the participant's satisfaction with the Mentor | ||||||
7 | Company relationship; | ||||||
8 | (10) information on the Program participant's | ||||||
9 | satisfaction with Regional Primes Program Lead and the | ||||||
10 | Program overall; and | ||||||
11 | (11) Upon graduation from the Program, participants | ||||||
12 | shall continue to provide metric data outlined in (1), | ||||||
13 | (4), (5) and (6) annually for 10 years. | ||||||
14 | (c) In accordance with the goal of creating an | ||||||
15 | individualized experience for each participant, nonperformance | ||||||
16 | issues with Program participants will be addressed with | ||||||
17 | one-on-one coaching from the Regional Primes Program Lead and | ||||||
18 | necessary resources. Individual contractor performance issues | ||||||
19 | shall be reported up to the Primes Program Administrator on a | ||||||
20 | quarterly basis with issues designated as "resolved", "in | ||||||
21 | remediation", or "needing a resolution" as appropriate. | ||||||
22 | (d) Individual contractors can request assignment to a | ||||||
23 | different Mentor Company if warranted. | ||||||
24 | Section 5-1530. Regional cohort and program-level metrics | ||||||
25 | and goals. |
| |||||||
| |||||||
1 | (a) Regional Primes Program Leads shall report the | ||||||
2 | following metrics and progress on indicated goals to the | ||||||
3 | Primes Program Administrator on a timeline established by the | ||||||
4 | Primes Program Administrator: | ||||||
5 | (1) cohort recruiting efforts, including the geography | ||||||
6 | targeted, events held, budget allocated for recruiting, | ||||||
7 | and audience-appropriateness of language and graphics in | ||||||
8 | all Program materials; | ||||||
9 | (2) program applications received; | ||||||
10 | (3) participant selection data including racial and | ||||||
11 | geographic breakdown; | ||||||
12 | (4) program participants with ongoing issues as | ||||||
13 | described in subsection (c) of Section 5-1525 of this | ||||||
14 | Part; | ||||||
15 | (5) retention of participants in each cohort; | ||||||
16 | (6) total projects bid, started, and completed by | ||||||
17 | participants, including information about revenue, hiring, | ||||||
18 | and subcontractor relationships with projects; | ||||||
19 | (7) total certifications issued; | ||||||
20 | (8) employment data for contractor hires and industry | ||||||
21 | jobs created including demographic, salary, length of | ||||||
22 | service and geographic data; | ||||||
23 | (9) grants and loans distributed; | ||||||
24 | (10) hours logged in activities including the | ||||||
25 | mentorship program; and | ||||||
26 | (11) program participant satisfaction with the |
| |||||||
| |||||||
1 | Program. | ||||||
2 | (b) The Primes Program Administrator shall compile data at | ||||||
3 | both the regional level and the overall Program level and | ||||||
4 | create quarterly reports for the Department and the Advisory | ||||||
5 | Board and an annual report for the Illinois General Assembly. | ||||||
6 | Reporting provided to the Department and General Assembly will | ||||||
7 | be anonymized to protect the data of Program participants, | ||||||
8 | although some reporting by zip code or other geographic | ||||||
9 | segment may be included. It will highlight how the Program is | ||||||
10 | building wealth through increased revenues of participating | ||||||
11 | companies, new hiring, creation of industry jobs, increased | ||||||
12 | revenues of the larger pool of BIPOC subcontractors and | ||||||
13 | through community arrangements that provide for passive income | ||||||
14 | streams and asset ownership. | ||||||
15 | Section 5-1535. Mentorship Program | ||||||
16 | (a) The Regional Primes Program Leads shall recruit | ||||||
17 | private companies to serve as mentors to Program participants. | ||||||
18 | The primary role of the Mentor Companies shall be to assist | ||||||
19 | Program participants in succeeding in the clean energy | ||||||
20 | industry. | ||||||
21 | (b) The Primes Program Administrator may select Mentor | ||||||
22 | Companies with the following qualifications: | ||||||
23 | (1) excellent standing with state clean energy | ||||||
24 | programs; | ||||||
25 | (2) 4 or more years of experience in the field in which |
| |||||||
| |||||||
1 | they will serve as a Mentor Company; and | ||||||
2 | (3) a proven track record of success in the field in | ||||||
3 | which they will serve as a Mentor Company. | ||||||
4 | (c) The Regional Primes Program Leads shall collaborate | ||||||
5 | with Mentor Companies and the mentee Program participants to | ||||||
6 | create a plan for ongoing contact in opportunities such as | ||||||
7 | on-the-job training, site walkthroughs, business process and | ||||||
8 | structure walkthroughs, quality assurance and quality control | ||||||
9 | reviews, and other relevant activities. Mentor Companies may | ||||||
10 | identify what level of stipend they require. | ||||||
11 | (d) The Regional Primes Program Lead shall recommend the | ||||||
12 | Mentor Company-mentee pairings and associated Mentor Company | ||||||
13 | stipends to the Primes Program Administrator for approval. | ||||||
14 | (e) The Regional Primes Program Lead shall conduct an | ||||||
15 | annual review of each Mentor Company-mentee pairing and | ||||||
16 | recommend whether it continues for a second year and the level | ||||||
17 | of stipend that is appropriate. The review will also ensure | ||||||
18 | that any profit-sharing and purchased services agreements | ||||||
19 | adhere to the guidelines established by the Primes Program | ||||||
20 | Administrator. | ||||||
21 | Section 5-1540. Program budget. | ||||||
22 | (a) The Department shall allocate $3 million annually to | ||||||
23 | the Primes Program Administrator for each of the 3 regional | ||||||
24 | budgets from the Energy Community Reinvestment Fund. | ||||||
25 | (b) Each regional budget will be developed collaboratively |
| |||||||
| |||||||
1 | by the Primes Program Administrator and the corresponding | ||||||
2 | Regional Primes Program Lead. The budget will cover Program | ||||||
3 | administration, Program publicity and candidate recruitment, | ||||||
4 | training and certification costs, operational support grants | ||||||
5 | for Program participants, Mentor Company stipends and loan | ||||||
6 | loss reserves for contractor capitalization as well as other | ||||||
7 | costs the Primes Program Administrator deems to be necessary | ||||||
8 | or beneficial for the implementation of the Program. | ||||||
9 | (c) The Primes Program Administrator shall conduct | ||||||
10 | budgeting in conjunction with Illinois Clean Energy Jobs and | ||||||
11 | Justice Fund or comparable financing institution so that loan | ||||||
12 | loss reserves are sufficient to underwrite $7 million in | ||||||
13 | low-interest loans in each of the 3 regions. | ||||||
14 | (d) All available grant and loan funding should be made | ||||||
15 | available to Program participants in a timely fashion. | ||||||
16 | Part 20. Returning Residents Program | ||||||
17 | Section 5-2001. Purpose. The Returning Residents Clean | ||||||
18 | Jobs Training Program shall be established within the Illinois | ||||||
19 | Department of Commerce and Economic Opportunity in an effort | ||||||
20 | to assist inmates in their rehabilitation through training | ||||||
21 | that prepares them to successfully hold employment in the | ||||||
22 | clean energy jobs sector upon their release from | ||||||
23 | incarceration. |
| |||||||
| |||||||
1 | Section 5-2005. Definitions. As used in this Part: | ||||||
2 | "Commitment" means a judicially determined placement in | ||||||
3 | the custody of the Department of Corrections on the basis of | ||||||
4 | conviction or delinquency. | ||||||
5 | "Committed person" means a person committed to the | ||||||
6 | Department of Corrections. | ||||||
7 | "Correctional institution or facility" means a Department | ||||||
8 | of Corrections building or part of a Department of Corrections | ||||||
9 | building where committed persons are detained in a secure | ||||||
10 | manner. | ||||||
11 | "Discharge" means the end of a sentence or the final | ||||||
12 | termination of a detainee's physical commitment to and | ||||||
13 | confinement in the Department of Corrections. | ||||||
14 | "Program" means the clean energy jobs instruction | ||||||
15 | established by this Part. | ||||||
16 | "Program Administrator" means the person or entity | ||||||
17 | selected to administer and coordinate the work of the Illinois | ||||||
18 | Returning Residents Clean Jobs Training Program as established | ||||||
19 | in Section 5-2030 of this Part. | ||||||
20 | "Regional Administrator" means the person or entity | ||||||
21 | selected to administer and coordinate programs as described in | ||||||
22 | Section 5-130 of Part 1 of this Act. | ||||||
23 | "Returning resident" means any United States resident who | ||||||
24 | is: 17 years of age or older; in the physical custody of the | ||||||
25 | Department of Corrections and scheduled to be re-entering | ||||||
26 | society within 12 months. |
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1 | Section 5-2010. Program. | ||||||
2 | (a) General. The Returning Residents Clean Jobs Training | ||||||
3 | Program shall be based on a curriculum designed to be as | ||||||
4 | similar as practical to the Clean Energy Jobs Training | ||||||
5 | Programs available for persons not committed as established in | ||||||
6 | Part 5 of this Act. The program shall include structured | ||||||
7 | hands-on activities in correctional institutions or | ||||||
8 | facilities, including classroom spaces and outdoor spaces, to | ||||||
9 | instruct participants in the core curriculum established in | ||||||
10 | Part 5 of this Act. | ||||||
11 | (b) Connected Services. The program shall be designed and | ||||||
12 | operated to allow participants to graduate from the program as | ||||||
13 | hireable in the solar power and energy efficiency industries. | ||||||
14 | The program shall provide participants with the knowledge and | ||||||
15 | ability to access the necessary mental health, case | ||||||
16 | management, and other support services, both during the | ||||||
17 | program and after graduation, to ensure they are successful in | ||||||
18 | the clean energy jobs sector. | ||||||
19 | (c) Recruitment of Participants. The Program | ||||||
20 | Administrators shall implement a recruitment process to | ||||||
21 | educate committed persons on the benefits of the program and | ||||||
22 | how to enroll in the program. This recruitment process must | ||||||
23 | reach both men's correctional institutions and facilities and | ||||||
24 | women's correctional institutions and facilities. | ||||||
25 | (d) Connection to Employers. The Program Administrators |
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1 | shall be responsible for connecting program graduates with | ||||||
2 | potential employers in the solar power and energy efficiency | ||||||
3 | and related industries. The Regional Administrators shall | ||||||
4 | assist the Program Administrators with this task. | ||||||
5 | (e) Graduation. Participants who successfully complete all | ||||||
6 | assignments in the program shall be considered graduates and | ||||||
7 | shall receive a program graduation certificate, as well as any | ||||||
8 | certifications earned in the process. | ||||||
9 | Section 5-2015. Administrative rules; eligibility. | ||||||
10 | (a) A committed person in a correctional institution or | ||||||
11 | facility is eligible if the committed person: | ||||||
12 | (1) is not prohibited by Illinois statute from | ||||||
13 | entering a residence or public building as a result of a | ||||||
14 | previous conviction; | ||||||
15 | (2) is within 12 months of expected release; | ||||||
16 | (3) volunteers, or is recommended to participate, with | ||||||
17 | a strong interest in the program and in securing and | ||||||
18 | keeping a clean energy job upon completion of the program | ||||||
19 | and release; | ||||||
20 | (4) meets all program and testing requirements; | ||||||
21 | (5) is willing to follow all program requirements; and | ||||||
22 | (6) is willing to participate in all prescribed | ||||||
23 | program events including the required wrap-around/support | ||||||
24 | services. | ||||||
25 | (b) The Department of Corrections shall provide data |
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1 | needed to determine eligibility and work with the Program | ||||||
2 | Administrator to select individuals for the training program.
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3 | Section 5-2020. Program entry and testing requirements. To | ||||||
4 | enter the Returning Residents Clean Jobs Training Program, | ||||||
5 | committed persons must complete a simple application, undergo | ||||||
6 | an interview and coaching session, and pass the Test for Adult | ||||||
7 | Basic Education. The Returning Residents Clean Jobs Training | ||||||
8 | Program shall include a one week "pre" program boot camp that | ||||||
9 | ensures the candidates understand and are interested in | ||||||
10 | continuing the program. Candidates that successfully complete | ||||||
11 | the "pre" program boot camp shall continue to the full | ||||||
12 | program. | ||||||
13 | Section 5-2025. Administrative rules; drug testing. A | ||||||
14 | clean drug test is required to complete the Returning | ||||||
15 | Residents Clean Jobs Training Program. A drug test shall be | ||||||
16 | administered at least once prior to graduation, and, if | ||||||
17 | positive, it shall not result in immediate expulsion, but | ||||||
18 | outreach must be performed to offer assistance and mitigation. | ||||||
19 | An additional clean test is then required to complete the | ||||||
20 | program. | ||||||
21 | Section 5-2030. Curriculum and program administration. | ||||||
22 | (a) Curriculum. | ||||||
23 | (1) General. The Returning Residents Clean Jobs |
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1 | Training Program shall be based on a curriculum designed | ||||||
2 | to be as similar as practical to the Clean Energy Jobs | ||||||
3 | Training Programs available for persons not committed as | ||||||
4 | established in Part 5 of this Act, with a focus on | ||||||
5 | preparing graduates for employment in the solar power and | ||||||
6 | energy efficiency industries. | ||||||
7 | (2) Curriculum design and public comment. The | ||||||
8 | Department shall design a draft curriculum for the | ||||||
9 | implementation of the Returning Residents Clean Jobs | ||||||
10 | Training Program by making adjustments to the Clean Energy | ||||||
11 | Jobs Training Programs curriculum to meet in-facility | ||||||
12 | requirements. The Department shall consult with the | ||||||
13 | Department of Corrections to ensure all curriculum | ||||||
14 | elements may be available within Department of Corrections | ||||||
15 | facilities. The Department shall then publish the draft | ||||||
16 | curriculum no more than 120 days after the effective date | ||||||
17 | of this Act, and solicit public comments on the draft | ||||||
18 | curriculum for at least 30 days prior to beginning program | ||||||
19 | implementation. | ||||||
20 | (3) Curriculum goals and skills. Program participants | ||||||
21 | shall be instructed in skills that prepare them for | ||||||
22 | employment in the clean energy industry. The Program shall | ||||||
23 | focus on solar and energy efficiency training, including | ||||||
24 | both technical and soft skills necessary for success in | ||||||
25 | the field. | ||||||
26 | (A) Solar power training. Program participants |
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1 | shall receive training focused on accessing | ||||||
2 | opportunities in the solar industry and earning the | ||||||
3 | necessary certifications to work in the solar industry | ||||||
4 | as a solar tech including installation, maintenance, | ||||||
5 | technical work, and sales. | ||||||
6 | (B) Energy efficiency training. Program | ||||||
7 | participants shall receive training focused on | ||||||
8 | accessing opportunities in the energy efficiency | ||||||
9 | industry and earning the necessary certifications to | ||||||
10 | work in the energy efficiency industry through | ||||||
11 | training in building science principles, sales of | ||||||
12 | solar technology, installation, maintenance, and the | ||||||
13 | skills needed to become an energy auditor, building | ||||||
14 | analyst, or HVAC Tech. | ||||||
15 | (C) Additional hard and soft skills for clean | ||||||
16 | energy jobs. Training shall include, but is not | ||||||
17 | limited to, job readiness training, mental health | ||||||
18 | assessment and services, and addiction recovery | ||||||
19 | services. | ||||||
20 | (4) Guidebook. The Program Administrators shall | ||||||
21 | collaborate to create and publish a guidebook that allows | ||||||
22 | for the implementation of the curriculum and provides | ||||||
23 | information on all necessary and useful resources for | ||||||
24 | program participants and graduates. | ||||||
25 | (b) Program administration. | ||||||
26 | (1) Program administrators. |
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1 | (A) Within 210 days after the effective date of | ||||||
2 | this Act, the Department shall complete the following: | ||||||
3 | (i) Convene a comprehensive stakeholder | ||||||
4 | process that includes, at minimum, representatives | ||||||
5 | from community-based organizations in | ||||||
6 | environmental justice communities, | ||||||
7 | community-based organizations serving low-income | ||||||
8 | persons and families, community-based | ||||||
9 | organizations serving energy workers, and labor | ||||||
10 | unions, to seek input on the administration of | ||||||
11 | this program. | ||||||
12 | (ii) Gather input from the comprehensive | ||||||
13 | stakeholder process and publish a summary of the | ||||||
14 | input received during the stakeholder process, | ||||||
15 | along with an implementation plan incorporating | ||||||
16 | input from the stakeholder process on the | ||||||
17 | Department website or the initial Program website. | ||||||
18 | The implementation plans shall also be provided to | ||||||
19 | the Advisory Board. | ||||||
20 | (iii) Hold a 30-day public comment period | ||||||
21 | seeking input on the implementation plans. | ||||||
22 | (iv) In consultation with the Regional | ||||||
23 | Administrators and Advisory Board, select a | ||||||
24 | Program Administrator for each of the three | ||||||
25 | regions: North, Central, and South, to administer | ||||||
26 | and coordinate the work of the Illinois Returning |
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1 | Residents Clean Jobs Training Program. Candidates | ||||||
2 | shall be evaluated with input from the Advisory | ||||||
3 | Board. | ||||||
4 | (B) The Program Administrators shall have strong | ||||||
5 | capabilities, experience, and knowledge related to | ||||||
6 | program development and economic management; cultural | ||||||
7 | and language competency needed to be effective in the | ||||||
8 | respective communities to be served; expertise in | ||||||
9 | working in and with BIPOC and environmental justice | ||||||
10 | communities; knowledge and experience in working with | ||||||
11 | providers of clean energy jobs; and awareness of solar | ||||||
12 | power and energy efficiency industry trends and | ||||||
13 | activities, workforce development best practices, and | ||||||
14 | regional workforce development needs, and community | ||||||
15 | development. The Program Administrators shall | ||||||
16 | demonstrate a track record of strong partnerships with | ||||||
17 | community-based organizations. | ||||||
18 | (C) The Program Administrators shall coordinate | ||||||
19 | with Regional Administrators and the Clean Jobs | ||||||
20 | Workforce Hubs Network Program to ensure execution, | ||||||
21 | performance, partnerships, marketing, and program | ||||||
22 | access across the State that is as consistent as | ||||||
23 | possible while respecting regional differences. The | ||||||
24 | Program Administrators shall work with partner | ||||||
25 | community-based organizations in their respective | ||||||
26 | regions and Program Delivery Areas to deliver the |
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1 | Program. | ||||||
2 | (D) The Program Administrators shall collaborate | ||||||
3 | to create and publish an employer "Hiring Returning | ||||||
4 | Residents" handbook that includes benefits and | ||||||
5 | expectations of hiring returning residents, guidance | ||||||
6 | on how to recruit, hire, and retain returning | ||||||
7 | residents, guidance on how to access state and federal | ||||||
8 | tax credits and incentives, resources from federal and | ||||||
9 | state, guidance on how to update company policies to | ||||||
10 | support hiring and supporting returning residents, and | ||||||
11 | an understanding of the harm in one-size fits all | ||||||
12 | policies toward returning residents. The handbook | ||||||
13 | shall be updated every 5 years or more frequently if | ||||||
14 | needed to ensure its contents are accurate. The | ||||||
15 | handbook shall be made available on the Department's | ||||||
16 | website. | ||||||
17 | (E) The Program Administrators shall work with | ||||||
18 | potential employers and employers who hire graduates | ||||||
19 | to collect data needed to ensure program participant | ||||||
20 | success and to evaluate success of the program, | ||||||
21 | including, but not limited to: | ||||||
22 | (i) candidates interviewed and hiring status; | ||||||
23 | (ii) graduate employment status, such as hire | ||||||
24 | date, salary grade changes, hours worked, and | ||||||
25 | separation date; | ||||||
26 | (iii) key demographics by project or project |
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1 | category; and | ||||||
2 | (iv) continuing education and certifications | ||||||
3 | gained by program graduates. | ||||||
4 | The Program Administrators will work with | ||||||
5 | potential employers to promote company policies to | ||||||
6 | support hiring and supporting returning residents via | ||||||
7 | employee/employer liability, coverage, insurance, | ||||||
8 | bonding, training, hiring practices, and retention | ||||||
9 | support. The Program Administrator will provide | ||||||
10 | services such as, but not limited to, job coaching and | ||||||
11 | financial coaching to program graduates to support | ||||||
12 | their employment longevity. The Program Administrators | ||||||
13 | shall report data needed to ensure program participant | ||||||
14 | success and to evaluate success of the program to the | ||||||
15 | Department, Regional Administrators, and Advisory | ||||||
16 | Board. | ||||||
17 | (F) The Program Administrators shall identify | ||||||
18 | clean energy job opportunities and assist participants | ||||||
19 | in achieving employment. The program shall include at | ||||||
20 | least one job fair; include job placement discussions | ||||||
21 | with clean energy employers; establish a partnership | ||||||
22 | with Illinois solar energy businesses and trade | ||||||
23 | associations to identify solar employers that support | ||||||
24 | and hire returning residents, and; involve the | ||||||
25 | Department, Regional Administrators, and the Advisory | ||||||
26 | Board in finding employment for participants and |
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1 | graduates in the solar power and energy efficiency | ||||||
2 | industries. | ||||||
3 | (G) The Program Administrators shall work with | ||||||
4 | graduates to maintain contact, including quarterly | ||||||
5 | check-ins, and ensure access to the necessary mental | ||||||
6 | health, case management, and other support services, | ||||||
7 | both during the program and after graduation, to | ||||||
8 | ensure they are successful in the clean energy jobs | ||||||
9 | sector. | ||||||
10 | (2) Community Organizations. Program Administrators | ||||||
11 | may contract with local community-based organizations to | ||||||
12 | provide program elements at each facility. Contracts with | ||||||
13 | local community-based organizations shall be initially | ||||||
14 | competitively selected by the Department within 330 days | ||||||
15 | after the effective date of this Act and shall be | ||||||
16 | subsequently competitively selected by the Department | ||||||
17 | every 5 years. Community-based organizations delivering | ||||||
18 | the program elements outlined may provide all elements | ||||||
19 | required or may subcontract to other entities for the | ||||||
20 | provision of portions of program elements, including, but | ||||||
21 | not limited to, administrative soft and hard skills for | ||||||
22 | program participants, delivery of specific training(s) in | ||||||
23 | the core curriculum, or provision of other support | ||||||
24 | functions for program delivery compliance. The Department | ||||||
25 | and the Regional Administrators shall collaborate to | ||||||
26 | develop uniform minimum contractual requirements for |
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1 | competitively selected community-based organizations to | ||||||
2 | provide the Program, uniform minimum contractual | ||||||
3 | requirements for all Program subcontracts, and uniform | ||||||
4 | templates for Requests For Proposals for all Program | ||||||
5 | subcontracts. | ||||||
6 | (3) Scheduling and Delays. The Department should aim | ||||||
7 | to include training in conjunction with other pre-release | ||||||
8 | procedures and movements. Delays in a workshop being | ||||||
9 | provided shall not cause delays in discharge. Detainees | ||||||
10 | may not be prevented from attending workshops due to | ||||||
11 | staffing shortages, lockdowns, conflicts with family or | ||||||
12 | legal visits, court dates, medical appointments, | ||||||
13 | commissary visits, recreational sessions, dining, work, | ||||||
14 | class, or bathing schedules. In case of conflict or | ||||||
15 | staffing shortages, returning residents must be given full | ||||||
16 | opportunity to attend a workshop at a later time. | ||||||
17 | (4) Coordination with Clean Jobs Workforce Hubs | ||||||
18 | Network Program, established by Part 5 of this Act to | ||||||
19 | Provide Pre-Release Training. The Program Administrators | ||||||
20 | may establish shortened Clean Jobs Training Programs at | ||||||
21 | facilities that are designed to prepare and place | ||||||
22 | graduates in the Clean Jobs Workforce Hubs following | ||||||
23 | release from commitment. These programs may focus on | ||||||
24 | technical skills that prepare participants for clean | ||||||
25 | energy jobs as well as other generalized workforce and | ||||||
26 | life skills necessary for success. Any graduate of these |
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1 | programs must be guaranteed placement in a Clean Jobs | ||||||
2 | Workforce Hub training program. | ||||||
3 | Section 5-2035. Advisory Board and program management. | ||||||
4 | (a) The Advisory Board shall review the Returning | ||||||
5 | Residents Clean Jobs Training Program, implement and enforce | ||||||
6 | the policies and requirements of the program and the Program | ||||||
7 | Administrators, and review, approve, and make adjustments to | ||||||
8 | the implementation policies and deliverables of the Program | ||||||
9 | Administrators and other program implementers. The Advisory | ||||||
10 | Board shall ensure that metrics and a reporting structure are | ||||||
11 | in place to support successful implementation. These metrics | ||||||
12 | shall include, but are not limited to: | ||||||
13 | (1) demographics of each entering and graduating | ||||||
14 | class; | ||||||
15 | (2) percent of graduates employed at 6 and 12 months | ||||||
16 | after release; | ||||||
17 | (3) recidivism rate of program participants at 3 and 5 | ||||||
18 | years after release; and | ||||||
19 | (4) information on the type of employment, whether | ||||||
20 | full or part time or seasonal, and pay rates achieved by | ||||||
21 | program graduates. | ||||||
22 | The metrics and performance outcomes shall be shared with | ||||||
23 | the Department and with Program Administrators and | ||||||
24 | implementers for the program created by Part 5 of this Act. All | ||||||
25 | program implementers should have input before major changes to |
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1 | policy, metrics, or outcomes are determined. Program metrics | ||||||
2 | and performance outcomes shall be published on the | ||||||
3 | Department's website annually. | ||||||
4 | (b) The Director of the Department of Corrections shall | ||||||
5 | ensure that the wardens or superintendents of all correctional | ||||||
6 | institutions and facilities visibly post information on the | ||||||
7 | program in common areas of their respective institutions, | ||||||
8 | broadcast the same via in-house institutional information | ||||||
9 | television channels, and distribute updated information in a | ||||||
10 | timely, visible, and accessible manner. | ||||||
11 | (c) All program content and materials shall be distributed | ||||||
12 | annually to the Community Support Advisory Councils of the | ||||||
13 | Department of Corrections for use in re-entry programs across | ||||||
14 | this State. | ||||||
15 | Section 5-2040. Returning Residents Clean Jobs Training | ||||||
16 | Program monitoring and enforcement. | ||||||
17 | (a) The Director of Corrections shall ensure that wardens | ||||||
18 | or superintendents, program, educational, and security and | ||||||
19 | movement staff permit program workshops to take place, and | ||||||
20 | that returning residents are escorted to workshops in a | ||||||
21 | consistent and timely manner. | ||||||
22 | (b) Compliance with this Part shall be monitored by a | ||||||
23 | report published annually by the Department of Corrections | ||||||
24 | containing data, including numbers of returning residents who | ||||||
25 | enrolled in the program, numbers of returning residents who |
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1 | completed the program, and total numbers of individuals | ||||||
2 | discharged. Other data that shall be collected include the | ||||||
3 | number of people hired, the type of employment (full-time | ||||||
4 | versus part-time; permanent versus seasonal short-term | ||||||
5 | contract), the salary grade of people hired every 3 months, | ||||||
6 | certifications of people hired every 3 months, the demographic | ||||||
7 | mix of project teams per project, and the recidivism rate over | ||||||
8 | 3 to 5 years. Data shall be disaggregated by institution, | ||||||
9 | discharge, or residence address of resident, and other | ||||||
10 | factors. | ||||||
11 | Section 5-2045. Funding. The Funding for this program | ||||||
12 | shall be subject to appropriation from the Energy Community | ||||||
13 | Reinvestment Fund and other sources. The Director of the | ||||||
14 | Department of Commerce and Economic Opportunity may, upon | ||||||
15 | consultation with the Director of Corrections, allocate | ||||||
16 | funding to the Department of Corrections as necessary to | ||||||
17 | offset costs incurred by the Departments of Corrections in | ||||||
18 | program implementation. | ||||||
19 | Section 5-2050. Access. The program instructors and staff | ||||||
20 | shall have access to Department of Corrections institutions | ||||||
21 | and facilities as needed, including, but not limited to, | ||||||
22 | classroom space and outdoor space, with an expectation that | ||||||
23 | they shall follow all facility procedures and protocols. |
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1 | Article 10. Illinois Clean Energy | ||||||
2 | Jobs and Justice Fund Act | ||||||
3 | Section 10-1. Short title. This Article may be cited as | ||||||
4 | the Illinois Clean Energy Jobs and Justice Fund Act. | ||||||
5 | References in this Article to "this Act" mean this Article. | ||||||
6 | Section 10-5. Purpose. | ||||||
7 | The purpose of this Act is to promote the health, welfare, | ||||||
8 | and prosperity of all the residents of this State by ensuring | ||||||
9 | access to financial products that allow Illinois residents and | ||||||
10 | businesses to invest in clean energy. Furthermore, the | ||||||
11 | Illinois Clean Energy Jobs and Justice Fund, is designed to | ||||||
12 | fill the following purposes: | ||||||
13 | (1) Ensure that the benefits of the clean energy | ||||||
14 | economy are equitably distributed; | ||||||
15 | (2) Make clean energy accessible to all through the | ||||||
16 | provision of innovative financing opportunities and grants | ||||||
17 | for Minority Business Enterprises (MBE) and other | ||||||
18 | contractors of color, and for low-income, environmental | ||||||
19 | justice, and BIPOC communities and the businesses that | ||||||
20 | serve these communities; | ||||||
21 | (3) Prioritize the provision of public and private | ||||||
22 | capital for clean energy investment to MBEs and other | ||||||
23 | contractors of color, and to businesses serving | ||||||
24 | low-income, environmental justice, and BIPOC communities; |
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1 | (4) Accelerate the flow of private capital into clean | ||||||
2 | energy markets; | ||||||
3 | (5) Assist low-income, environmental justice, and | ||||||
4 | BIPOC community utility customers in paying for solar and | ||||||
5 | energy efficiency upgrades through energy cost savings; | ||||||
6 | (6) Increase access to no- and low-cost loans for MBE | ||||||
7 | and other contractors of color; | ||||||
8 | (7) Develop financing products designed to compensate | ||||||
9 | for historical and structural barriers preventing | ||||||
10 | low-income, environmental justice, and BIPOC communities | ||||||
11 | from accessing traditional financing; | ||||||
12 | (8) Leverage private investment in clean energy | ||||||
13 | projects and in projects developed by MBEs and other | ||||||
14 | contractors of color; and | ||||||
15 | (9) Pursue financial self-sustainability through | ||||||
16 | innovative financing products. | ||||||
17 | Section 10-10. Definitions. For the purpose of this act, | ||||||
18 | the following terms shall have the following definitions: | ||||||
19 | "Black, indigenous, and people of color" or "BIPOC" is | ||||||
20 | defined as people who are members of the groups described in | ||||||
21 | subparagraphs (a) through (e) of paragraph (A) of subsection | ||||||
22 | (1) of Section 2 of the Business Enterprise for Minorities, | ||||||
23 | Women, and Persons with Disabilities Act. | ||||||
24 | "Board" means the Board of Directors of the Illinois Clean | ||||||
25 | Energy Jobs and Justice Fund. |
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1 | "Contractor of color" means a business entity that is at | ||||||
2 | least 51% owned by one or more BIPOC persons, or in the case of | ||||||
3 | a corporation, at least 51% of the corporation's stock is | ||||||
4 | owned by one or more BIPOC persons; and the management and | ||||||
5 | daily business operations of which are controlled by one or | ||||||
6 | more of the BIPOC persons who own it. A contractor of color may | ||||||
7 | also be a nonprofit entity with a board of directors composed | ||||||
8 | of at least 51% BIPOC persons or a nonprofit entity certified | ||||||
9 | by the State of Illinois to be minority-led. | ||||||
10 | "Environmental justice communities" means the definition | ||||||
11 | of that term based on existing methodologies and findings used | ||||||
12 | by the Illinois Power Agency and its Administrator of the | ||||||
13 | Illinois Solar for All Program. | ||||||
14 | "Fund" means the Illinois Clean Energy Jobs and Justice | ||||||
15 | Fund. | ||||||
16 | "Low-income" means households whose income does not exceed | ||||||
17 | 80% of Area Median Income (AMI), adjusted for family size and | ||||||
18 | revised every 5 years. | ||||||
19 | "Low-income community" means a census tract where at least | ||||||
20 | half of households are low-income. | ||||||
21 | "Minority-owned business enterprise" or "MBE" means a | ||||||
22 | business certified as such by an authorized unit of government | ||||||
23 | or other authorized entity in Illinois. | ||||||
24 | "Municipality" means a city, village, or incorporated | ||||||
25 | town. | ||||||
26 | "Person" means any natural person, firm, partnership, |
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1 | corporation, either domestic or foreign, company, association, | ||||||
2 | limited liability company, joint stock company, or association | ||||||
3 | and includes any trustee, receiver, assignee, or personal | ||||||
4 | representative thereof. | ||||||
5 | Section 10-15. Clean Energy Jobs and Justice Fund. | ||||||
6 | (a) Formation. Not later than 30 days after the effective | ||||||
7 | date of this Act, there shall be incorporated a nonprofit | ||||||
8 | corporation to be known as the "Clean Energy Jobs and Justice | ||||||
9 | Fund." | ||||||
10 | (b) Limitation. The Fund shall not be an agency or | ||||||
11 | instrumentality of the State Government. | ||||||
12 | (c) Full faith and credit. The full faith and credit of the | ||||||
13 | State of Illinois shall not extend to the Fund. | ||||||
14 | (d) Nonprofit status. The Fund shall: | ||||||
15 | (1) Be an organization described in subsection (c) | ||||||
16 | Section 501 of the Internal Revenue Code of 1986 and | ||||||
17 | exempt from taxation under subsection (a) of Section 501 | ||||||
18 | of that Code; | ||||||
19 | (2) Ensure that no part of the income or assets of the | ||||||
20 | Fund shall inure to the benefit of any director, officer, | ||||||
21 | or employee, except as reasonable compensation for | ||||||
22 | services or reimbursement for expenses; and | ||||||
23 | (3) Not contribute to or otherwise support any | ||||||
24 | political party or candidate for elective office. |
| |||||||
| |||||||
1 | Section 10-20. Board of directors. | ||||||
2 | (a) Board composition. The Fund shall be managed by, and | ||||||
3 | its powers, functions, and duties shall be exercised through, | ||||||
4 | a board to be composed of 11 members. The initial members of | ||||||
5 | the Board shall be selected as follows: | ||||||
6 | (1) Appointed members. Five members shall be appointed | ||||||
7 | by the Governor within 60 days after the effective date of | ||||||
8 | this Act. Members of the board shall be broadly | ||||||
9 | representative of the communities that the Fund is | ||||||
10 | designed to serve. Of such members: | ||||||
11 | (i) at least one member shall be selected from | ||||||
12 | each of the following geographic regions in the State: | ||||||
13 | northeast, northwest, central, and southern; | ||||||
14 | (ii) at least one member shall have experience in | ||||||
15 | providing energy-related services to low-income, | ||||||
16 | environmental justice, or BIPOC communities; | ||||||
17 | (iii) At least one member shall own or be employed | ||||||
18 | by an MBE or BIPOC-owned business focused on the | ||||||
19 | deployment of clean energy; | ||||||
20 | (iv) at least one member shall be a policy or | ||||||
21 | implementation expert in serving low-income, | ||||||
22 | environmental justice or BIPOC communities or | ||||||
23 | individuals, including environmental justice | ||||||
24 | communities, BIPOC communities, justice-involved | ||||||
25 | persons, persons who are or were in the child welfare | ||||||
26 | system, displaced energy workers, gender nonconforming |
| |||||||
| |||||||
1 | and transgender individuals, or youth; and | ||||||
2 | (v) Board members can fulfill multiple criteria | ||||||
3 | (such as representing the southern region and a MBE or | ||||||
4 | BIPOC-owned business focused on the deployment of | ||||||
5 | clean energy). | ||||||
6 | (2) Elected members. Six members shall be elected | ||||||
7 | unanimously by the 5 members appointed pursuant to | ||||||
8 | subparagraph (A) within 120 days after the effective date | ||||||
9 | of this Act. Members of the board shall be broadly | ||||||
10 | representative of the communities that the Fund is | ||||||
11 | designed to serve. Of such members: | ||||||
12 | (i) at least one member shall be selected from | ||||||
13 | each of the following geographic regions in the State: | ||||||
14 | northeast, northwest, central, and southern; | ||||||
15 | (ii) at least one member shall be from a | ||||||
16 | community-based organization with a specific mission | ||||||
17 | to support racially and socioeconomically diverse | ||||||
18 | environmental justice communities; | ||||||
19 | (iii) at least one member shall own or be employed | ||||||
20 | by an MBE or BIPOC-owned business focused on the | ||||||
21 | deployment of clean energy; | ||||||
22 | (iv) at least one member shall be from an | ||||||
23 | organization specializing in providing energy-related | ||||||
24 | services to low-income, environmental justice, or | ||||||
25 | BIPOC communities; and | ||||||
26 | (v) Board members can fulfill multiple criteria |
| |||||||
| |||||||
1 | (such as representing the southern region and an MBE | ||||||
2 | or BIPOC-owned business focused on the deployment of | ||||||
3 | clean energy). | ||||||
4 | (3) Terms. The terms of the initial members of the | ||||||
5 | Board shall be as follows: | ||||||
6 | (A) The 5 members appointed and confirmed under | ||||||
7 | paragraph (1) of subsection (a) of this Section shall | ||||||
8 | have initial 5-year terms. | ||||||
9 | (B) Of the 6 members elected under paragraph (2) | ||||||
10 | of subsection (a) of this Section, 3 shall have | ||||||
11 | initial 4-year terms and 3 shall have initial 3-year | ||||||
12 | terms. | ||||||
13 | (b) Subsequent composition and terms. | ||||||
14 | (1) Except for the selection of the initial members of | ||||||
15 | the Board for their initial terms under paragraph (1) of | ||||||
16 | subsection (a) of this Section, the members of the Board | ||||||
17 | shall be elected by the members of the Board. | ||||||
18 | (2) Disqualification. A member of the Board shall be | ||||||
19 | disqualified from voting for any position on the Board for | ||||||
20 | which such member is a candidate. | ||||||
21 | (3) Terms. All members elected pursuant to paragraph | ||||||
22 | (2) of subsection (a) of this Section shall have a term of | ||||||
23 | 5 years. | ||||||
24 | (c) Qualifications. The members of the board shall be | ||||||
25 | broadly representative of the communities that the Fund is | ||||||
26 | designed to serve and shall collectively have expertise in |
| |||||||
| |||||||
1 | environmental justice, energy efficiency, distributed | ||||||
2 | renewable energy, workforce development, finance and | ||||||
3 | investments, clean transportation, and climate resilience. Of | ||||||
4 | such members: | ||||||
5 | (1) not fewer than 2 shall be selected from each of the | ||||||
6 | following geographic regions in the State: northeast, | ||||||
7 | northwest, central, and southern; | ||||||
8 | (2) not fewer than 2 shall be from an MBE or | ||||||
9 | BIPOC-owned business focused on the deployment of clean | ||||||
10 | energy; | ||||||
11 | (3) not fewer than 2 shall be from a community-based | ||||||
12 | organization with a specific mission to support racially | ||||||
13 | and socioeconomically diverse environmental justice | ||||||
14 | communities; and | ||||||
15 | (4) not fewer than 2 shall be from an organization | ||||||
16 | specializing in providing energy-related services to | ||||||
17 | low-income, environmental justice, or BIPOC communities. | ||||||
18 | (5) Members of the board can fulfill multiple criteria | ||||||
19 | (such as representing the southern region and an MBE or | ||||||
20 | BIPOC-owned business focused on the deployment of clean | ||||||
21 | energy). | ||||||
22 | (d) Restriction on membership. No officer or employee of | ||||||
23 | the State or any other level of government may be appointed or | ||||||
24 | elected as a member of the Board. | ||||||
25 | (e) Quorum. Seven members of the Board shall constitute a | ||||||
26 | quorum. |
| |||||||
| |||||||
1 | (f) Bylaws. The board shall adopt, and may amend, such | ||||||
2 | bylaws as are necessary for the proper management and | ||||||
3 | functioning of the Fund. Such bylaws shall include designation | ||||||
4 | of officers of the Fund and the duties of such officers. | ||||||
5 | (g) Restrictions. No person who is an employee in any | ||||||
6 | managerial or supervisory capacity, director, officer or agent | ||||||
7 | or who is a member of the immediate family of any such | ||||||
8 | employee, director, officer or agent of any public utility is | ||||||
9 | eligible to be a director. No director may hold any elective | ||||||
10 | position, be a candidate for any elective position, be a State | ||||||
11 | public official, be employed by the Illinois Commerce | ||||||
12 | Commission, or be employed in a governmental position exempt | ||||||
13 | from the Illinois Personnel Code. | ||||||
14 | (h) Director, Family Member Employment. No director, nor | ||||||
15 | member of his or her immediate family shall, either directly | ||||||
16 | or indirectly, be employed for compensation as a staff member | ||||||
17 | or consultant of the Fund. | ||||||
18 | (i) Meetings. The board shall hold regular meetings at | ||||||
19 | least once every 3 months on such dates and at such places as | ||||||
20 | it may determine. Meetings may be held by teleconference or | ||||||
21 | videoconference. Special meetings may be called by the | ||||||
22 | president or by a majority of the directors upon at least 7 | ||||||
23 | days' advance written notice. The act of the majority of the | ||||||
24 | directors, present at a meeting at which a quorum is present, | ||||||
25 | shall be the act of the board of directors unless the act of a | ||||||
26 | greater number is required by this Act or bylaws. A summary of |
| |||||||
| |||||||
1 | the minutes of every board meeting shall be made available to | ||||||
2 | each public library in the State upon request and to | ||||||
3 | individuals upon request. Board of Director meeting minutes | ||||||
4 | shall be posted on the Fund's website within 14 days after | ||||||
5 | Board approval of the minutes. | ||||||
6 | (j) Expenses. A director may not receive any compensation | ||||||
7 | for his or her services but shall be reimbursed for necessary | ||||||
8 | expenses, including travel expenses incurred in the discharge | ||||||
9 | of duties. The board shall establish standard allowances for | ||||||
10 | mileage, room and meals and the purposes for which such | ||||||
11 | allowances may be made and shall determine the reasonableness | ||||||
12 | and necessity for such reimbursements. | ||||||
13 | (k) In the event of a vacancy on the board, the board of | ||||||
14 | Directors shall appoint a temporary member, consistent with | ||||||
15 | the requirements of the board composition, to serve the | ||||||
16 | remainder of the term for the vacant seat. | ||||||
17 | (l) The board shall adopt rules for its own management and | ||||||
18 | government, including bylaws and a conflict of interest | ||||||
19 | policy. | ||||||
20 | (m) The board of directors of the Fund shall adopt written | ||||||
21 | procedures for: | ||||||
22 | (1) adopting an annual budget and plan of operations, | ||||||
23 | including a requirement of board approval before the | ||||||
24 | budget or plan may take effect; | ||||||
25 | (2) hiring, dismissing, promoting, and compensating | ||||||
26 | employees of the Fund, including an affirmative action |
| |||||||
| |||||||
1 | policy and a requirement of board approval before a | ||||||
2 | position may be created or a vacancy filled; | ||||||
3 | (3) acquiring real and personal property and personal | ||||||
4 | services, including a requirement of board approval for | ||||||
5 | any non-budgeted expenditure in excess of 5 thousand | ||||||
6 | dollars; | ||||||
7 | (4) contracting for financial, legal, bond | ||||||
8 | underwriting and other professional services, including | ||||||
9 | requirements that the Fund (i) solicit proposals at least | ||||||
10 | once every 3 years for each such service that it uses, and | ||||||
11 | (ii) ensure equitable contracting with diverse suppliers; | ||||||
12 | (5) issuing and retiring bonds, bond anticipation | ||||||
13 | notes, and other obligations of the Fund; and | ||||||
14 | (6) awarding loans, grants and other financial | ||||||
15 | assistance, including (i) eligibility criteria, the | ||||||
16 | application process and the role played by the Fund's | ||||||
17 | staff and board of directors, and (ii) ensuring racial | ||||||
18 | equity in the awarding of loans, grants, and other | ||||||
19 | financial assistance. | ||||||
20 | (n) The board shall develop a robust set of metrics to | ||||||
21 | measure the degree to which the program is meeting the | ||||||
22 | purposes set forth in Section 5-10 of this Act, and especially | ||||||
23 | measuring adherence to the racial equity purposes set forth | ||||||
24 | there, and a reporting format and schedule to be adhered to by | ||||||
25 | the Fund officers and staff. These metrics and reports shall | ||||||
26 | be posted quarterly on the Fund's website. |
| |||||||
| |||||||
1 | (o) The board of directors has the responsibility to make | ||||||
2 | program adjustments necessary to ensure the Clean Energy Jobs | ||||||
3 | and Justice Fund is meeting the purposes set forth in Section | ||||||
4 | 5-10 of this Act. Fund officers and staff and the board of | ||||||
5 | directors are responsible for ensuring capital providers and | ||||||
6 | Fund officers and staff, partners, and financial institutions | ||||||
7 | are held to state and federal standards for ethics and | ||||||
8 | predatory lending practices and shall immediately remove any | ||||||
9 | offending products and sponsoring organizations from Fund | ||||||
10 | participation. | ||||||
11 | (p) The board shall issue annually a report reviewing the | ||||||
12 | activities of the Fund in detail and shall provide a copy of | ||||||
13 | such report to the joint standing committees of the General | ||||||
14 | Assembly having cognizance of matters relating to energy and | ||||||
15 | commerce. The report shall be published on the Fund's website | ||||||
16 | within 3 days after its submission to the General Assembly.
| ||||||
17 | Section 10-25. Powers and duties. | ||||||
18 | (a) The Fund shall endeavor to perform the following | ||||||
19 | actions, but is not limited to these specified actions: | ||||||
20 | (1) Develop programs to finance and otherwise support | ||||||
21 | clean energy investment and projects as determined by the | ||||||
22 | Fund in keeping with the purposes of this Act. | ||||||
23 | (2) Support financing or other expenditures that | ||||||
24 | promote investment in clean energy sources in order to (i) | ||||||
25 | foster the development and commercialization of clean |
| |||||||
| |||||||
1 | energy projects, including projects serving low-income, | ||||||
2 | environmental justice, and BIPOC communities, and (ii) | ||||||
3 | support project development by MBE and other contractors | ||||||
4 | of color. | ||||||
5 | (3) Prioritize the provision of public and private | ||||||
6 | capital for clean energy investment to MBEs and other | ||||||
7 | contractors of color, and to clean energy investment in | ||||||
8 | low-income, environmental justice, and BIPOC communities. | ||||||
9 | (4) Provide access to grants, no-cost, and low-cost | ||||||
10 | loans to MBEs and other contractors of color, including | ||||||
11 | those participating in the Illinois Clean Energy Black, | ||||||
12 | Indigenous, and People of Color Primes Contractor | ||||||
13 | Accelerator Program. | ||||||
14 | (5) Provide financial assistance in the form of | ||||||
15 | grants, loans, loan guarantees or debt and equity | ||||||
16 | investments, as approved in accordance with written | ||||||
17 | procedures. | ||||||
18 | (6) Assume or take title to any real property, convey | ||||||
19 | or dispose of its assets and pledge its revenues to secure | ||||||
20 | any borrowing, convey or dispose of its assets and pledge | ||||||
21 | its revenues to secure any borrowing, for the purpose of | ||||||
22 | developing, acquiring, constructing, refinancing, | ||||||
23 | rehabilitating or improving its assets or supporting its | ||||||
24 | programs, provided each such borrowing or mortgage, unless | ||||||
25 | otherwise provided by the board or the Fund, shall be a | ||||||
26 | special obligation of the Fund, which obligation may be in |
| |||||||
| |||||||
1 | the form of bonds, bond anticipation notes or other | ||||||
2 | obligations which evidence an indebtedness to the extent | ||||||
3 | permitted under this chapter to Fund, refinance and refund | ||||||
4 | the same and provide for the rights of holders thereof, | ||||||
5 | and to secure the same by pledge of revenues, notes and | ||||||
6 | mortgages of others, and which shall be payable solely | ||||||
7 | from the assets, revenues and other resources of the Fund | ||||||
8 | and such bonds may be secured by a special capital reserve | ||||||
9 | Fund contributed to by the State. | ||||||
10 | (7) Contract with community-based organizations to | ||||||
11 | design and implement program marketing, communications, | ||||||
12 | and outreach to potential users of the Fund's products, | ||||||
13 | particularly potential users in low-income, environmental | ||||||
14 | justice, and BIPOC communities. These contracts shall | ||||||
15 | include funding to ensure that the contracted | ||||||
16 | community-based organizations provide materials and | ||||||
17 | outreach support, including payments for time and | ||||||
18 | expenses, to other community organizations, professional | ||||||
19 | organizations, and subcontractors that have an interest in | ||||||
20 | the Fund's financial products. | ||||||
21 | (8) Collect the following data and perform monthly and | ||||||
22 | quarterly reporting to the board in accordance with the | ||||||
23 | reporting format and schedule developed by the Board of | ||||||
24 | Directors: | ||||||
25 | (A) baseline data on capital sources/providers, | ||||||
26 | loan recipients, projects funded, loan terms, and |
| |||||||
| |||||||
1 | other relevant financial data; | ||||||
2 | (B) diversity and equity data (race, gender, | ||||||
3 | socioeconomic, geographic region, etc.); and | ||||||
4 | (C) program administration and servicing data.
| ||||||
5 | These reports shall be published to the Fund's website | ||||||
6 | monthly and quarterly. Reports published to the | ||||||
7 | website may be anonymized to protect the data of | ||||||
8 | individual program participants. | ||||||
9 | (9) Have the purposes as provided by resolution of the | ||||||
10 | Fund's board of directors, which purposes shall be | ||||||
11 | consistent with this Section and Section 5-10 of this Act. | ||||||
12 | No further action is required for the establishment of the | ||||||
13 | Fund, except the adoption of a resolution for the Fund. | ||||||
14 | (b) In addition to, and not in limitation of, any other | ||||||
15 | power of the Fund set forth in this Section or any other | ||||||
16 | provision of the general statutes, the Fund shall have and may | ||||||
17 | exercise the following powers in furtherance of or in carrying | ||||||
18 | out its purposes: | ||||||
19 | (1) have perpetual succession as a body corporate and | ||||||
20 | to adopt bylaws, policies and procedures for the | ||||||
21 | regulation of its affairs and the conduct of its business; | ||||||
22 | (2) make and enter into all contracts and agreements | ||||||
23 | that are necessary or incidental to the conduct of its | ||||||
24 | business; | ||||||
25 | (3) invest in, acquire, lease, purchase, own, manage, | ||||||
26 | hold, sell and dispose of real or personal property or any |
| |||||||
| |||||||
1 | interest therein; | ||||||
2 | (4) borrow money or guarantee a return to investors or | ||||||
3 | lenders; | ||||||
4 | (5) hold patents, copyrights, trademarks, marketing | ||||||
5 | rights, licenses or other rights in intellectual property; | ||||||
6 | (6) employ such assistants, agents, and employees as | ||||||
7 | may be necessary or desirable; establish all necessary or | ||||||
8 | appropriate personnel practices and policies, including | ||||||
9 | those relating to hiring, promotion, compensation and | ||||||
10 | retirement, and engage consultants, attorneys, financial | ||||||
11 | advisers, appraisers and other professional advisers as | ||||||
12 | may be necessary or desirable; | ||||||
13 | (7) invest any funds not needed for immediate use or | ||||||
14 | disbursement pursuant to investment policies adopted by | ||||||
15 | the Fund's board of directors; | ||||||
16 | (8) procure insurance against any loss or liability | ||||||
17 | with respect to its property or business of such types, in | ||||||
18 | such amounts and from such insurers as it deems desirable; | ||||||
19 | (9) enter into joint ventures and invest in, and | ||||||
20 | participate with any person, including, without | ||||||
21 | limitation, government entities and private corporations, | ||||||
22 | in the formation, ownership, management and operation of | ||||||
23 | business entities, including stock and nonstock | ||||||
24 | corporations, limited liability companies and general or | ||||||
25 | limited partnerships, formed to advance the purposes of | ||||||
26 | the Fund, provided members of the board of directors or |
| |||||||
| |||||||
1 | officers or employees of the Fund may serve as directors, | ||||||
2 | members or officers of any such business entity, and such | ||||||
3 | service shall be deemed to be in the discharge of the | ||||||
4 | duties or within the scope of the employment of any such | ||||||
5 | director, officer or employee, as the case may be, so long | ||||||
6 | as such director, officer or employee does not receive any | ||||||
7 | compensation or financial benefit as a result of serving | ||||||
8 | in such role; and | ||||||
9 | (10) all other acts necessary or convenient to carry | ||||||
10 | out the purposes of this Act. | ||||||
11 | (c) Before making any loan, loan guarantee, or such other | ||||||
12 | form of financing support or risk management for a clean | ||||||
13 | energy project, the Fund shall develop standards to govern the | ||||||
14 | administration of the Fund through rules, policies and | ||||||
15 | procedures that specify borrower eligibility, terms and | ||||||
16 | conditions of support, and other relevant criteria, standards, | ||||||
17 | or procedures. | ||||||
18 | (d) Capitalization. The Fund shall be capitalized with | ||||||
19 | $100 million from the Energy Community Reinvestment Fund | ||||||
20 | within the first year after the enacted date of this Act. The | ||||||
21 | Fund will receive additional capitalization of $40 million | ||||||
22 | each year thereafter. Funding sources specifically authorized | ||||||
23 | include, but are not limited to: | ||||||
24 | (1) funds repurposed from existing programs providing | ||||||
25 | financing support for clean energy projects, provided any | ||||||
26 | transfer of funds from such existing programs shall be |
| |||||||
| |||||||
1 | subject to approval by the General Assembly and shall be | ||||||
2 | used for expenses of financing, grants and loans; | ||||||
3 | (2) any federal funds that can be used for the | ||||||
4 | purposes specified in this Act; | ||||||
5 | (3) charitable gifts, grants, contributions as well as | ||||||
6 | loans from individuals, corporations, university | ||||||
7 | endowments and philanthropic foundations; and | ||||||
8 | (4) earnings and interest derived from financing | ||||||
9 | support activities for clean energy projects backed by the | ||||||
10 | Fund. | ||||||
11 | (e) The Fund may enter into agreements with private | ||||||
12 | sources to raise capital. | ||||||
13 | (f) The Fund may assess reasonable fees on its financing | ||||||
14 | activities to cover its reasonable costs and expenses, as | ||||||
15 | determined by the board. | ||||||
16 | (g) The Fund shall make information regarding the rates, | ||||||
17 | terms and conditions for all of its financing support | ||||||
18 | transactions available to the public for inspection, including | ||||||
19 | formal annual reviews by both a private auditor conducted | ||||||
20 | pursuant this Section and the Comptroller, and provide details | ||||||
21 | to the public on the Internet, provided public disclosure | ||||||
22 | shall be restricted for patentable ideas, trade secrets, | ||||||
23 | proprietary or confidential commercial or financial | ||||||
24 | information, disclosure of which may cause commercial harm to | ||||||
25 | a nongovernmental recipient of such financing support and for | ||||||
26 | other information exempt from public records disclosure. |
| |||||||
| |||||||
1 | (h) The powers enumerated in this Section shall be | ||||||
2 | interpreted broadly to effectuate the purposes established in | ||||||
3 | this Section and shall not be construed as a limitation of | ||||||
4 | powers. | ||||||
5 | Section 10-30. Primary responsibilities in early program | ||||||
6 | development. | ||||||
7 | (a) Consistent with the goals of this Act, the Fund has the | ||||||
8 | authority to pursue a broad range of financial products and | ||||||
9 | services. In early development of products and services | ||||||
10 | offered, the Fund should consider the following programs as | ||||||
11 | its initial set of investment initiatives: | ||||||
12 | (1) a solar lease, power-purchase agreement, or | ||||||
13 | loan-to-own product specifically designed to complement | ||||||
14 | and grow the Illinois Solar for All program; | ||||||
15 | (2) direct capitalization of contractors of color | ||||||
16 | participating in or graduating from the workforce and | ||||||
17 | business development programs established in the Clean | ||||||
18 | Jobs, Workforce and Contractor Equity Act; | ||||||
19 | (3) providing direct capitalization of community-based | ||||||
20 | projects in environmental justice communities through | ||||||
21 | upfront grants. Project applications should provide a | ||||||
22 | community benefit, align with environmental justice | ||||||
23 | communities, be in support of this Act's contractor and | ||||||
24 | workforce development goals, and support upfront planning, | ||||||
25 | development, and start up costs that often are not covered |
| |||||||
| |||||||
1 | prior to applying for program incentives and other loan | ||||||
2 | products; | ||||||
3 | (4) Providing loan loss reserve products to secure | ||||||
4 | stable and low-interest financing for individual projects | ||||||
5 | and portfolios consistent with the goals of this Act that | ||||||
6 | would be otherwise unable to receive financing; and | ||||||
7 | (5) offering financing and administrative services for | ||||||
8 | municipal utilities and rural electric cooperatives to | ||||||
9 | create their own version of the on-bill Equitable Energy | ||||||
10 | Upgrade Program such as the Pay As You Save program | ||||||
11 | developed by the Energy Efficiency Institute. | ||||||
12 | Section 10-35. Executive director and fund management. | ||||||
13 | (a) The executive director hired by the board shall have | ||||||
14 | the same qualifications as a director pursuant to subsection | ||||||
15 | (d) Section 10-10 of this Act. The executive director may not | ||||||
16 | be a candidate for the Board of Directors while serving as | ||||||
17 | executive director. The executive director must have 5 or more | ||||||
18 | years of experience in equitable and inclusive financing | ||||||
19 | serving racially and socioeconomically diverse communities. | ||||||
20 | (b) To hire the executive director, the board shall adhere | ||||||
21 | to any applicable State or federal law prohibiting | ||||||
22 | discrimination in employment. | ||||||
23 | (c) The board shall require all applicants for the | ||||||
24 | position of executive director of the Fund to file a financial | ||||||
25 | statement consistent with requirements established by the |
| |||||||
| |||||||
1 | board. The board shall require the executive director to file | ||||||
2 | a current statement annually. | ||||||
3 | (d) The Fund shall be administered by the executive | ||||||
4 | director and the staff and overseen by the Board of Directors. | ||||||
5 | Fund officers and staff shall receive training in how to best | ||||||
6 | provide services and support to low-income, environmental | ||||||
7 | justice, and BIPOC communities and on supporting borrowers | ||||||
8 | with loan applications, loan underwriting, and loan services. | ||||||
9 | Section 10-40. Dissolution. The Fund may dissolve or be | ||||||
10 | dissolved under the General Not for Profit Corporation Act. | ||||||
11 | Article 15. Community Energy, Climate, and Jobs Planning Act | ||||||
12 | Section 15-1. Short title. This Article may be cited as | ||||||
13 | the Community Energy, Climate, and Jobs Planning Act. | ||||||
14 | References in this Article to "this Act" mean
this Article. | ||||||
15 | Section 15-5. Findings. The General Assembly makes the | ||||||
16 | following findings: | ||||||
17 | (1) The health, welfare, and prosperity of Illinois | ||||||
18 | residents require that Illinois take all steps possible to | ||||||
19 | combat climate change, address harmful environmental | ||||||
20 | impacts deriving from the generation of electricity, | ||||||
21 | maximize quality job creation in the emerging clean energy | ||||||
22 | economy, ensure affordable utility service, equitable and |
| |||||||
| |||||||
1 | affordable access to transportation, and clean, safe, | ||||||
2 | affordable housing. | ||||||
3 | (2) The achievement of these goals will depend on | ||||||
4 | strong community engagement to ensure that programs and | ||||||
5 | policy solutions meet the needs of disparate communities. | ||||||
6 | (3) Ensuring that these goals are met without adverse | ||||||
7 | impacts on utility bill affordability, housing | ||||||
8 | affordability, and other essential services will depend on | ||||||
9 | the coordination of policies and programs within local | ||||||
10 | communities. | ||||||
11 | Section 15-10. Definitions. As used in this Act: | ||||||
12 | "Alternative energy improvement" means the installation or | ||||||
13 | upgrade of electrical wiring, outlets, or charging stations to | ||||||
14 | charge a motor vehicle that is fully or partially powered by | ||||||
15 | electricity; photovoltaic, energy storage, or thermal | ||||||
16 | resource; or any combination thereof. | ||||||
17 | "Disadvantaged worker" means an individual who is defined | ||||||
18 | as: (1) being homeless; (2) being a custodial single parent; | ||||||
19 | (3) being a recipient of public assistance; (4) lacking a high | ||||||
20 | school diploma or high school equivalency; (5) having a | ||||||
21 | criminal record or other involvement in the criminal justice | ||||||
22 | system; (6) suffering from chronic unemployment; (7) being | ||||||
23 | previously in the child welfare system; or (8) being a | ||||||
24 | veteran. | ||||||
25 | "Energy efficiency improvement" means equipment, devices, |
| |||||||
| |||||||
1 | or materials intended to decrease energy consumption or | ||||||
2 | promote a more efficient use of electricity, natural gas, | ||||||
3 | propane, or other forms of energy on property, including, but | ||||||
4 | not limited to, all of the following: | ||||||
5 | (1) insulation in walls, roofs, floors, foundations, | ||||||
6 | or heating and cooling distribution systems; | ||||||
7 | (2) storm windows and doors, multi-glazed windows and | ||||||
8 | doors, heat-absorbing or heat-reflective glazed and coated | ||||||
9 | window and door systems, and additional glazing, | ||||||
10 | reductions in glass area, and other window and door system | ||||||
11 | modifications that reduce energy consumption; | ||||||
12 | (3) automated energy control systems; | ||||||
13 | (4) high efficiency heating, ventilating, or | ||||||
14 | air-conditioning and distribution system modifications or | ||||||
15 | replacements; | ||||||
16 | (5) caulking, weather-stripping, and air sealing; | ||||||
17 | (6) replacement or modification of lighting fixtures | ||||||
18 | to reduce the energy use of the lighting system; | ||||||
19 | (7) energy controls or recovery systems; | ||||||
20 | (8) day lighting systems; | ||||||
21 | (9) any energy efficiency project, as defined in | ||||||
22 | Section 825-65 of the Illinois Finance Authority Act; and | ||||||
23 | (10) any other installation or modification of | ||||||
24 | equipment, devices, or materials approved as a utility | ||||||
25 | cost-saving measure by the governing body. | ||||||
26 | "Energy project" means the installation or modification of |
| |||||||
| |||||||
1 | an alternative energy improvement, energy efficiency | ||||||
2 | improvement, or water use improvement, or the acquisition, | ||||||
3 | installation, or improvement of a renewable energy system that | ||||||
4 | is affixed to a stabilized existing property (including new | ||||||
5 | construction). | ||||||
6 | "Governing body" means the county board or board of county | ||||||
7 | commissioners of a county or the city council or board of | ||||||
8 | trustees of a municipality. | ||||||
9 | "Local Employment Plan" means a bidding option that public | ||||||
10 | agencies may include in requests for proposals to incentivize | ||||||
11 | bidders to voluntarily plan to retain and create high-skilled | ||||||
12 | local manufacturing jobs; invest in preapprenticeship, | ||||||
13 | apprenticeship, and training opportunities; and develop | ||||||
14 | family-sustaining career pathways into clean energy industries | ||||||
15 | for disadvantaged workers in a specified local area. The Local | ||||||
16 | Employment Plan only applies to work that is not financed with | ||||||
17 | federal money. | ||||||
18 | "Local unit of government" means a county or municipality. | ||||||
19 | "Natural climate solutions" means conservation, | ||||||
20 | restoration, or improved land management actions that increase | ||||||
21 | carbon storage or avoid greenhouse gas emissions on natural | ||||||
22 | and working lands. | ||||||
23 | "Nature-based approaches for climate adaptation" means | ||||||
24 | actions that preserve, enhance, or expand functions provided | ||||||
25 | by nature that increase capacity to manage adverse conditions | ||||||
26 | created or exacerbated by climate change. "Nature-based |
| |||||||
| |||||||
1 | approaches for climate adaptation" includes, but is not | ||||||
2 | limited to, the restoration of native ecosystems, especially | ||||||
3 | floodplains; installation of bioswales, rain gardens, and | ||||||
4 | other green stormwater infrastructure; and practices that | ||||||
5 | increase soil health and reduce urban heat island effects. | ||||||
6 | "Public agency" means the State of Illinois or any of its | ||||||
7 | government bodies and subdivisions, including the various | ||||||
8 | counties, townships, municipalities, school districts, | ||||||
9 | educational service regions, special road districts, public | ||||||
10 | water supply districts, drainage districts, levee districts, | ||||||
11 | sewer districts, housing authorities, and transit agencies. | ||||||
12 | "Renewable energy resource" includes energy and its | ||||||
13 | associated renewable energy credit or renewable energy credits | ||||||
14 | from wind energy, solar thermal energy, geothermal energy, | ||||||
15 | photovoltaic cells and panels, biodiesel, anaerobic digestion, | ||||||
16 | and hydropower that does not involve new construction or | ||||||
17 | significant expansion of hydropower dams. For purposes of this | ||||||
18 | Act, landfill gas produced in the State is considered a | ||||||
19 | renewable energy resource. "Renewable energy resource" does | ||||||
20 | not include the incineration or burning of any solid material. | ||||||
21 | "Renewable energy system" means a fixture, product, | ||||||
22 | device, or interacting group of fixtures, products, or devices | ||||||
23 | on the customer's side of the meter that use one or more | ||||||
24 | renewable energy resources to generate electricity, and | ||||||
25 | specifically includes any renewable energy project, as defined | ||||||
26 | in Section 825-65 of the Illinois Finance Authority Act. |
| |||||||
| |||||||
1 | "U.S. Employment Plan" means a bidding option that public | ||||||
2 | agencies may include in requests for proposals to incentivize | ||||||
3 | bidders to voluntarily plan to retain and create high-skilled | ||||||
4 | U.S. manufacturing jobs; invest in preapprenticeship, | ||||||
5 | apprenticeship, and training opportunities; and develop | ||||||
6 | family-sustaining career pathways into clean energy industries | ||||||
7 | for disadvantaged workers throughout the U.S. The U.S. | ||||||
8 | Employment Plan only applies to work financed with federal | ||||||
9 | money. | ||||||
10 | "Water use improvement" means any fixture, product, | ||||||
11 | system, device, or interacting group thereof for or serving | ||||||
12 | any property that has the effect of conserving water resources | ||||||
13 | through improved water management, efficiency, or thermal | ||||||
14 | resource. | ||||||
15 | Section 15-15. Community Energy, Climate, and Jobs Plans; | ||||||
16 | creation. | ||||||
17 | (a) Pursuant to the procedures in Section 15-20, a local | ||||||
18 | unit of government may establish Community Energy, Climate, | ||||||
19 | and Jobs Plans and identify boundaries and areas covered by | ||||||
20 | the Plans. | ||||||
21 | (b) Community Energy, Climate, and Jobs Plans are intended | ||||||
22 | to aid local governments in developing a comprehensive | ||||||
23 | approach to combining different energy, climate, and jobs | ||||||
24 | programs and funding resources to achieve complementary | ||||||
25 | impact. An effective planning process may: |
| |||||||
| |||||||
1 | (1) help communities discover ways that their local | ||||||
2 | government, businesses, and residents can control their | ||||||
3 | energy use and bills; | ||||||
4 | (2) ensure a cost-effective transition away from | ||||||
5 | fossil fuels in the transportation sector; | ||||||
6 | (3) expand access to workforce development and job | ||||||
7 | training opportunities for disadvantaged workers in the | ||||||
8 | emerging clean energy economy; | ||||||
9 | (4) incentivize the creation and retention of quality | ||||||
10 | Illinois jobs (when federal funds are not involved) in the | ||||||
11 | emerging clean energy economy; | ||||||
12 | (5) incentivize the creation and retention of quality | ||||||
13 | U.S. jobs in the emerging clean energy economy; | ||||||
14 | (6) promote economic development through improvements | ||||||
15 | in community infrastructure, transit, and support for | ||||||
16 | local business; | ||||||
17 | (7) improve the health of Illinois communities by | ||||||
18 | reducing emissions, addressing existing brownfield areas, | ||||||
19 | and promoting the integration of distributed energy | ||||||
20 | resources; | ||||||
21 | (8) enable greater customer engagement, empowerment, | ||||||
22 | and options for energy services, and ultimately reduce | ||||||
23 | utility bills for Illinoisans; | ||||||
24 | (9) bring the benefits of grid modernization and the | ||||||
25 | deployment of distributed energy resources to economically | ||||||
26 | disadvantaged communities throughout Illinois; |
| |||||||
| |||||||
1 | (10) support existing Illinois policy goals promoting | ||||||
2 | energy efficiency, demand response, and investments in | ||||||
3 | renewable energy resources; | ||||||
4 | (11) enable communities to better respond to extreme | ||||||
5 | heat and cold emergencies; and | ||||||
6 | (12) explore opportunities to expand and improve | ||||||
7 | carbon sequestration, recreational amenities, wildlife | ||||||
8 | habitat, flood mitigation, agricultural production, | ||||||
9 | tourism, and similar co-benefits by deploying natural | ||||||
10 | climate solutions and nature-based approaches for climate | ||||||
11 | adaptation. | ||||||
12 | (c) A Community Energy, Climate, and Jobs Plan may include | ||||||
13 | discussion of: | ||||||
14 | (1) the demographics of the community, including | ||||||
15 | information on the mix of residential and commercial areas | ||||||
16 | and populations, ages, languages, education, and workforce | ||||||
17 | training, including an examination of the average utility | ||||||
18 | bills paid within the community by class and census area, | ||||||
19 | the percentage and locations of individuals requiring | ||||||
20 | energy assistance, and participation of community members | ||||||
21 | in other assistance programs; and also including an | ||||||
22 | examination of the community's energy use, whether of | ||||||
23 | electricity, natural gas, or other fuels and whether for | ||||||
24 | transportation or other purposes; | ||||||
25 | (2) the geography of the community, including the | ||||||
26 | amount of green space, brownfield sites, farmland, |
| |||||||
| |||||||
1 | waterways, flood zones, heat islands, areas for potential | ||||||
2 | development, location of critical infrastructure such as | ||||||
3 | emergency response facilities, health care and education | ||||||
4 | facilities, and public transportation routes; | ||||||
5 | (3) information on economic development opportunities, | ||||||
6 | commercial usage, and employment opportunities; | ||||||
7 | (4) the current status of zero-emission vehicles | ||||||
8 | operated by or on behalf of public agencies within the | ||||||
9 | community; and | ||||||
10 | (5) other topics deemed applicable by the community. | ||||||
11 | (d) A Community Energy, Climate, and Jobs Plan may address | ||||||
12 | the following areas: | ||||||
13 | (1) distributed energy resources, including energy | ||||||
14 | efficiency, demand response, dynamic pricing, energy | ||||||
15 | storage, and solar (thermal, rooftop, and community); | ||||||
16 | (2) building codes (both commercial and residential); | ||||||
17 | (3) vehicle miles traveled; | ||||||
18 | (4) transit options, including individual car | ||||||
19 | ownership, ride sharing, buses, trains, bicycles, and | ||||||
20 | pedestrian walkways; | ||||||
21 | (5) community assets related to extreme heat | ||||||
22 | emergencies, such as cooling and warming centers; | ||||||
23 | (6) public agency procurements of zero-emission, | ||||||
24 | electric vehicles; and | ||||||
25 | (7) networks of natural resources and infrastructure. | ||||||
26 | (e) A Community Energy, Climate, and Jobs Plan may |
| |||||||
| |||||||
1 | conclude with proposals to: | ||||||
2 | (1) increase the use of electricity as a | ||||||
3 | transportation fuel at multi-unit dwellings; | ||||||
4 | (2) maximize the system-wide benefits of | ||||||
5 | transportation electrification; | ||||||
6 | (3) direct public agencies to implement tools, such as | ||||||
7 | the U.S. Employment Plan or a Local Employment Plan, to | ||||||
8 | incentivize manufacturers in clean energy industries to | ||||||
9 | create and retain quality jobs and invest in training, | ||||||
10 | workforce development, and apprenticeship programs in | ||||||
11 | connection to a major contract; | ||||||
12 | (4) test innovative load management programs or rate | ||||||
13 | structures associated with the use of electric vehicles by | ||||||
14 | residential customers to achieve customer fuel cost | ||||||
15 | savings relative to gasoline or diesel fuels and to | ||||||
16 | optimize grid efficiency; | ||||||
17 | (5) increase the integration of distributed energy | ||||||
18 | resources in the community; | ||||||
19 | (6) significantly expand the percentage of net-zero | ||||||
20 | housing and net-zero buildings in the community; | ||||||
21 | (7) improve utility bill affordability; | ||||||
22 | (8) increase mass transit ridership; | ||||||
23 | (9) decrease vehicle miles traveled; | ||||||
24 | (10) reduce local emissions of greenhouse gases, NO x , | ||||||
25 | SO x , particulate matter, and other air pollutants; and | ||||||
26 | (11) improve community assets that help residents |
| |||||||
| |||||||
1 | respond to extreme heat and cold emergencies. | ||||||
2 | (f) A Community Energy, Climate, and Jobs Plan may be | ||||||
3 | administered by one or more program administrators or the | ||||||
4 | local unit of government. | ||||||
5 | (g) To be eligible for participation or funding through | ||||||
6 | the Clean Energy Empowerment Zone pilot projects, as provided | ||||||
7 | under Section 16-108.9 of the Public Utilities Act, or the | ||||||
8 | Carbon-Free Last Mile of Commutes Program, described in | ||||||
9 | Section 35 of the Electric Vehicle Act, a unit of local | ||||||
10 | government shall include in its Community Energy, Climate, and | ||||||
11 | Jobs Plans the information necessary for participation in | ||||||
12 | these programs and projects. | ||||||
13 | (1) Eligibility for funding or resources from the | ||||||
14 | Clean Energy Empowerment Zone pilot projects shall | ||||||
15 | require, at a minimum, the Plan to include information | ||||||
16 | necessary to determine whether the community qualifies as | ||||||
17 | a Clean Energy Empowerment Zone as described in Section | ||||||
18 | 16-108.9 of the Public Utilities Act. | ||||||
19 | (2) Eligibility for funding or resources from the | ||||||
20 | Carbon-Free Last Mile of Commutes Program as described in | ||||||
21 | Section 35 of the Electric Vehicle Act shall require, at a | ||||||
22 | minimum, the Plan to include: | ||||||
23 | (A) information that allows the Department of | ||||||
24 | Commerce and Economic Opportunity to assess current | ||||||
25 | transportation and public transit infrastructure | ||||||
26 | within the boundaries identified by the unit of local |
| |||||||
| |||||||
1 | government; and | ||||||
2 | (B) recommendations by the unit of local | ||||||
3 | government on how to use funds to increase carbon-free | ||||||
4 | last mile commuting. | ||||||
5 | (3) Units of local government may use previously | ||||||
6 | created Plans or reports to qualify for funding under this | ||||||
7 | subsection (g). The determination of which Plans qualify | ||||||
8 | shall be made liberally by the State agency or department | ||||||
9 | responsible for this determination, subject to the | ||||||
10 | conditions in paragraphs (1) and (2) of this subsection | ||||||
11 | (g). | ||||||
12 | Section 15-20. Community Energy, Climate, and Jobs | ||||||
13 | Planning process. | ||||||
14 | (a) An effective planning process shall engage with a | ||||||
15 | diverse set of stakeholders in local communities, including: | ||||||
16 | environmental justice organizations; economic development | ||||||
17 | organizations; faith-based nonprofit organizations; | ||||||
18 | educational institutions; interested residents; health care | ||||||
19 | institutions; tenant organizations; housing institutions, | ||||||
20 | developers, and owners; elected and appointed officials; and | ||||||
21 | representatives reflective of each local community. | ||||||
22 | (b) An effective planning process shall engage with | ||||||
23 | individual members of the community as much as possible to | ||||||
24 | ensure that the Plans receive input from as diverse a set of | ||||||
25 | perspectives as possible. |
| |||||||
| |||||||
1 | (c) Plan materials and meetings related to the Plan shall | ||||||
2 | be translated into languages that reflect the makeup of the | ||||||
3 | local community. | ||||||
4 | (d) The planning process shall be conducted in an ethical, | ||||||
5 | transparent fashion, and continually review its policies and | ||||||
6 | practices to determine how best to meet its objectives. | ||||||
7 | Section 15-25. Joint Community Energy, Climate, and Jobs | ||||||
8 | Plans. A local unit of government may join with any other local | ||||||
9 | unit of government, or with any public or private person, or | ||||||
10 | with any number or combination thereof, under the | ||||||
11 | Intergovernmental Cooperation Act, by contract or otherwise as | ||||||
12 | may be permitted by law, for the implementation of a Community | ||||||
13 | Energy, Climate, and Jobs Plan, in whole or in part. | ||||||
14 | Article 20. Energy Community Reinvestment Act | ||||||
15 | Section 20-1. Short title. This Article may be cited as | ||||||
16 | the Energy Community Reinvestment Act. References in this | ||||||
17 | Article to "this Act" mean
this Article. | ||||||
18 | Section 20-5. Findings. The General Assembly finds that, | ||||||
19 | as part of putting Illinois on a path to 100% renewable energy, | ||||||
20 | the State of Illinois should ensure a just transition to that | ||||||
21 | goal, providing support for the transition of Illinois' | ||||||
22 | communities and workers impacted by closures or reduced use of |
| |||||||
| |||||||
1 | fossil fuel power plants, nuclear power plants, or coal mines | ||||||
2 | by allocating new economic development resources for business | ||||||
3 | tax incentives, workforce training, site clean-up and reuse, | ||||||
4 | and local tax revenue replacement. | ||||||
5 | The General Assembly finds and declares that the health, | ||||||
6 | safety, and welfare of the people of this State are dependent | ||||||
7 | upon a healthy economy and vibrant communities; that the | ||||||
8 | closure of fossil fuel power plants, nuclear power plants, and | ||||||
9 | coal mines across the State have a significant impact on their | ||||||
10 | surrounding communities; that the expansion of renewable | ||||||
11 | energy creates significant job growth and contributes | ||||||
12 | significantly to the health, safety, and welfare of the people | ||||||
13 | of this State; that the continual encouragement, development, | ||||||
14 | growth, and expansion of renewable energy within the State | ||||||
15 | requires a cooperative and continuous partnership between | ||||||
16 | government and the renewable energy sector; and that there are | ||||||
17 | certain areas in this State that have lost, or will lose, jobs | ||||||
18 | due to the closure of fossil fuel power plants, nuclear power | ||||||
19 | plants, and coal mines and need the particular attention of | ||||||
20 | government, labor, and the residents of Illinois to help | ||||||
21 | attract new investment into these areas and directly aid the | ||||||
22 | local community and its residents. | ||||||
23 | Therefore, it is declared to be the purpose of this Act to | ||||||
24 | explore ways of stimulating the growth of new private | ||||||
25 | investment, including renewable energy investment, in this | ||||||
26 | State and to foster job growth in areas impacted by the closure |
| |||||||
| |||||||
1 | of coal energy plants, coal mines, and nuclear energy plants.
| ||||||
2 | Section 20-10. Definitions. As used in this Act, unless | ||||||
3 | the context otherwise requires:
| ||||||
4 | "State agencies" or "agencies" has the same meaning as | ||||||
5 | "State agencies" under Section 1-7 of the Illinois State | ||||||
6 | Auditing Act.
| ||||||
7 | "Board" means the Clean Energy Empowerment Zone Board | ||||||
8 | created in Section 20-20.
| ||||||
9 | "Clean Energy Empowerment Zone" or "Empowerment Zones" | ||||||
10 | means an area of the State certified by the Department as a | ||||||
11 | Clean Energy Empowerment Zone under this Act.
| ||||||
12 | "Commission" means the Energy Transition Workforce | ||||||
13 | Commission created in Section 20-45.
| ||||||
14 | "Department" means the Department of Commerce and Economic | ||||||
15 | Opportunity.
| ||||||
16 | "Displaced energy worker" means an energy worker who has | ||||||
17 | lost employment, or is anticipated by the Department to lose | ||||||
18 | employment within the next 2 years, due to the reduced | ||||||
19 | operation or closure of a fossil fuel power plant, nuclear | ||||||
20 | power plant, or coal mine. | ||||||
21 | "Energy worker" means a person who has been employed | ||||||
22 | full-time for a period of one year or longer, and within the | ||||||
23 | previous 5 years, at a fossil fuel power plant, a nuclear power | ||||||
24 | plant, or a coal mine located within the State of Illinois, | ||||||
25 | whether or not they are employed by the owner of the power |
| |||||||
| |||||||
1 | plant or mine. Energy workers are considered to be full-time | ||||||
2 | if they work at least 35 hours per week for 45 weeks a year or | ||||||
3 | the 1,820 work-hour equivalent with vacations, paid holidays, | ||||||
4 | and sick time, but not overtime, included in this computation. | ||||||
5 | Classification of an individual as an energy worker continues | ||||||
6 | for 5 years from the latest date of employment or the effective | ||||||
7 | date of this Act, whichever is later. | ||||||
8 | "Environmental justice communities" means the definition | ||||||
9 | of that term based on existing methodologies and findings, | ||||||
10 | used and as may be updated by the Illinois Power Agency and its | ||||||
11 | program administrator in the Illinois Solar for All Program. | ||||||
12 | "Fossil fuel power plant" means an electric generating | ||||||
13 | facility powered by gas, coal, other fossil fuels, or a | ||||||
14 | combination thereof. | ||||||
15 | "Low-income" means persons and families whose income does | ||||||
16 | not exceed 80% of area median income, adjusted for family size | ||||||
17 | and revised every 2 years. | ||||||
18 | "Local labor market area" means an economically integrated | ||||||
19 | area within which individuals reside and find employment | ||||||
20 | within a reasonable distance of their places of residence or | ||||||
21 | can readily change jobs without changing their places of | ||||||
22 | residence. | ||||||
23 | "Renewable energy enterprise" means a company that is | ||||||
24 | engaged in the production, manufacturing, distribution, or | ||||||
25 | development of renewable energy resources and associated | ||||||
26 | technologies. |
| |||||||
| |||||||
1 | "Renewable energy project" means a project conducted by a | ||||||
2 | renewable energy enterprise for the purpose of generating | ||||||
3 | renewable energy resources or energy storage. | ||||||
4 | "Renewable energy resources" has the meaning set forth in | ||||||
5 | Section 1-10 of the Illinois Power Agency Act. | ||||||
6 | "Rule" has the meaning set forth in Section 1-70 of the | ||||||
7 | Illinois Administrative Procedure Act.
| ||||||
8 | Section 20-15. Designation of Clean Energy Empowerment | ||||||
9 | Zones.
| ||||||
10 | (a) Purpose. It is the intent of the General Assembly that | ||||||
11 | designation of a community as a Clean Energy Empowerment Zone | ||||||
12 | shall be reserved for communities that have experienced | ||||||
13 | economic or environmental hardship due to the energy | ||||||
14 | transition or fossil fuel power generation and extraction. The | ||||||
15 | purpose of this Section 20-15 is to establish an efficient and | ||||||
16 | equitable process by which the Department and communities | ||||||
17 | across the State may seek the designation of Clean Energy | ||||||
18 | Empowerment Zones, thereby allowing for economic and | ||||||
19 | environmental benefits of the clean energy economy to be | ||||||
20 | obtained by communities that have been deprived of these | ||||||
21 | benefits. The process conducted by the Department, the Board, | ||||||
22 | and participating units of local government shall be as | ||||||
23 | transparent and inclusive as is reasonably practical. | ||||||
24 | (b) Notification of local governments. Within 30 days | ||||||
25 | after the effective date of this Act, the Department shall |
| |||||||
| |||||||
1 | publish a notice on its website stating its intention to begin | ||||||
2 | the review of potential locations for Clean Energy Empowerment | ||||||
3 | Zone regional designations, and solicit information from the | ||||||
4 | public on this topic. Within 45 days after the effective date | ||||||
5 | of this Act, the Department shall submit a notice to the county | ||||||
6 | board of each jurisdiction in which a fossil fuel power plant, | ||||||
7 | coal mine, or nuclear power plant is located, informing the | ||||||
8 | local governments of their intention to develop a list of | ||||||
9 | Clean Energy Empowerment Zones, providing a basic explanation | ||||||
10 | of the benefits of designation as a Clean Energy Empowerment | ||||||
11 | Zone, and informing them of participation opportunities in the | ||||||
12 | designation process. The Department may notify other persons | ||||||
13 | or local government units of this process at any time. | ||||||
14 | (c) Proposed list of Clean Energy Empowerment Zones. | ||||||
15 | Within 120 days after the effective date of this Act, the | ||||||
16 | Department of Commerce and Economic Opportunity shall develop | ||||||
17 | a proposed list of geographic regions in Illinois that qualify | ||||||
18 | as Clean Energy Empowerment Zones. The Department shall work | ||||||
19 | with the Illinois Environmental Protection Agency, the | ||||||
20 | Commission on Environmental Justice, the Department of Labor, | ||||||
21 | the Department of Natural Resources, and community | ||||||
22 | organizations to identify regions impacted by the decline of | ||||||
23 | coal generation, gas generation, nuclear generation, and coal | ||||||
24 | mining to develop the recommended list of regions that qualify | ||||||
25 | for Clean Energy Empowerment Zone designations. The Department | ||||||
26 | shall furnish maps that identify the proposed boundaries of |
| |||||||
| |||||||
1 | proposed Clean Energy Empowerment Zones, and include | ||||||
2 | justification for the inclusion or exclusion of certain | ||||||
3 | locations or regions. The proposed list shall be subject to | ||||||
4 | the notice and comment process established in subsection (e). | ||||||
5 | (d) Criteria for designation as a Clean Energy Empowerment | ||||||
6 | Zone. A region shall be proposed by the Department, and | ||||||
7 | certified by the Board as a Clean Energy Empowerment Zone if it | ||||||
8 | meets all of the following characteristics listed in | ||||||
9 | paragraphs (1) through (3) of this subsection (d). | ||||||
10 | (1) The region is a contiguous area, provided that a | ||||||
11 | Zone area may exclude wholly surrounded territory within | ||||||
12 | its boundaries; | ||||||
13 | (2) The region satisfies any additional criteria | ||||||
14 | established by the Department consistent with the purposes | ||||||
15 | of this Act; and | ||||||
16 | (3) The region meets one or more of the following: | ||||||
17 | (A) the area contains a fossil fuel or nuclear | ||||||
18 | power plant that was retired from service or has | ||||||
19 | significantly reduced service within 10 years before | ||||||
20 | the application for designation or will be retired or | ||||||
21 | have service significantly reduced within 5 years | ||||||
22 | following the application for designation; | ||||||
23 | (B) the area contains a coal mine that was closed | ||||||
24 | or had operations significantly reduced within 10 | ||||||
25 | years before the application for designation or is | ||||||
26 | anticipated to be closed or have operations |
| |||||||
| |||||||
1 | significantly reduced within 5 years following the | ||||||
2 | application for designation; or | ||||||
3 | (C) the area contains a nuclear power plant that | ||||||
4 | was decommissioned, but continued storing nuclear | ||||||
5 | waste before the effective date of this Act. | ||||||
6 | (e) Review and comment process. After developing the | ||||||
7 | proposed list of regions to be designated as Clean Energy | ||||||
8 | Empowerment Zones, or proposing additions to the list, the | ||||||
9 | Department shall conduct a 60-day public comment process, in | ||||||
10 | partnership with the other agencies, departments, and units of | ||||||
11 | local government where beneficial for the purposes of this | ||||||
12 | Section. The public comment process shall include, at a | ||||||
13 | minimum, 2 public hearings that are accessible to working | ||||||
14 | residents, shall prioritize the solicitation of feedback from | ||||||
15 | environmental justice communities and communities directly | ||||||
16 | impacted by the Clean Energy Empowerment Zone designation, and | ||||||
17 | shall provide for the submission of written comments through | ||||||
18 | the Internet. | ||||||
19 | Within 30 days after concluding the public comment | ||||||
20 | process, the Department shall modify or finalize the proposed | ||||||
21 | list of geographic regions that qualify as Clean Energy | ||||||
22 | Empowerment Zones and submit the list to the Clean Energy | ||||||
23 | Empowerment Zone Board for approval or modification as | ||||||
24 | described in Section 20-20. | ||||||
25 | (f) Local government self-designation. After the | ||||||
26 | Department submits its first list of proposed Clean Energy |
| |||||||
| |||||||
1 | Empowerment Zones to the Board, units of local government may, | ||||||
2 | on an ongoing basis, submit applications to the Department to | ||||||
3 | designate an area wholly or partially in their jurisdiction as | ||||||
4 | a Clean Energy Empowerment Zone if the Department has not | ||||||
5 | proposed the region as a potential Clean Energy Empowerment | ||||||
6 | Zone to the Board. Multiple units of local government may | ||||||
7 | submit a joint application for designation if the proposed | ||||||
8 | region or regions fall partially or wholly within their | ||||||
9 | combined jurisdictions. A unit of local government may submit | ||||||
10 | an application to the Department if: | ||||||
11 | (1) the area meets the criteria for designation as a | ||||||
12 | Clean Energy Empowerment Zone established in subsection | ||||||
13 | (d); and | ||||||
14 | (2) the unit of local government has conducted at | ||||||
15 | least one public hearing within the proposed Zone area | ||||||
16 | considering all of the following questions: (A) whether to | ||||||
17 | create the Zone; (B) what local plans, tax incentives, and | ||||||
18 | other programs should be established in connection with | ||||||
19 | the zone; and (C) what the boundaries of the Zone should | ||||||
20 | be. Public notice of the hearing shall be published in at | ||||||
21 | least one newspaper of general circulation within the Zone | ||||||
22 | area, not more than 21 days nor less than 7 days before the | ||||||
23 | hearing. | ||||||
24 | An application submitted under this subsection (f) shall | ||||||
25 | include a certified copy of the ordinance designating the | ||||||
26 | proposed Zone; a map of the proposed Clean Energy Empowerment |
| |||||||
| |||||||
1 | Zone, showing existing streets and highways; an analysis, and | ||||||
2 | any appropriate supporting documents and statistics, | ||||||
3 | demonstrating that the proposed zone area is qualified in | ||||||
4 | accordance with subsection (d); a statement detailing any tax, | ||||||
5 | grant, and other financial incentives or benefits, and any | ||||||
6 | programs, to be provided by the municipality or county to | ||||||
7 | renewable energy enterprises within the Zone, which are not | ||||||
8 | otherwise provided throughout the municipality or county; a | ||||||
9 | statement setting forth the economic development and planning | ||||||
10 | objectives for the Zone; an estimate of the economic impact of | ||||||
11 | the Zone, considering all of the tax incentives, financial | ||||||
12 | benefits and programs contemplated, upon the revenues of the | ||||||
13 | municipality or county; a specific definition of the | ||||||
14 | applicant's local labor market area; a transcript of all | ||||||
15 | public hearings on the Zone; and any additional information as | ||||||
16 | the Department may by rule require. | ||||||
17 | Within 60 days after receiving an application from a unit | ||||||
18 | of local government, the Department shall review the | ||||||
19 | application to determine whether the designated area qualifies | ||||||
20 | as a Clean Energy Empowerment Zone under this Section, and | ||||||
21 | submit its recommendation to the Clean Energy Empowerment Zone | ||||||
22 | Board including all necessary information and records for the | ||||||
23 | Board to review, as described in Section 20-20. Within 7 days | ||||||
24 | after submitting the recommendation to the Board, the | ||||||
25 | Department shall provide a copy of its recommendation to the | ||||||
26 | applicant, including all supporting documents and information |
| |||||||
| |||||||
1 | submitted to the Board. | ||||||
2 | (g) Application process. The Department shall, no later | ||||||
3 | than July 1, 2021, develop an ongoing application process for | ||||||
4 | Clean Energy Empowerment Zone applications by units of local | ||||||
5 | government. The application process shall be open during the | ||||||
6 | period of July 1, 2021 through January 1, 2050. The | ||||||
7 | Department, or any predecessor of the Department, may extend | ||||||
8 | the application process beyond that date if it deems it is | ||||||
9 | necessary or prudent to accomplish the purpose of this Act. | ||||||
10 | (h) Length of designation. A Clean Energy Empowerment Zone | ||||||
11 | designation lasts for 10 years from the effective date of the | ||||||
12 | designation and shall be subject to review by the Board after | ||||||
13 | 10 years for an additional 10-year designation beginning on | ||||||
14 | the expiration date of the Clean Energy Empowerment Zone. | ||||||
15 | During the review process, the Board shall consider the costs | ||||||
16 | incurred by the State and units of local government as a result | ||||||
17 | of benefits received by the Clean Energy Empowerment Zone. | ||||||
18 | (i) Emergency rulemaking. The Department has emergency | ||||||
19 | rulemaking authority for the purpose of implementation of this | ||||||
20 | Section until 12 months after the effective date of this Act as | ||||||
21 | provided under Section 5-45 of the Illinois Administrative | ||||||
22 | Procedure Act. | ||||||
23 | Section 20-20. Clean Energy Empowerment Zone Board.
| ||||||
24 | (a) A Clean Energy Empowerment Zone Board is hereby | ||||||
25 | created within the Department.
|
| |||||||
| |||||||
1 | (b) The Board shall consist of 8 voting members, one of | ||||||
2 | whom shall be the Director of Commerce and Economic | ||||||
3 | Opportunity, or his or her designee, who shall serve as | ||||||
4 | chairperson; one of whom shall be the Director of Revenue, or | ||||||
5 | his or her designee; 2 of whom shall be members appointed by | ||||||
6 | the Governor, with the advice and consent of the Senate; one of | ||||||
7 | whom shall be appointed by the Speaker of the House of | ||||||
8 | Representatives; one of whom shall be appointed by the | ||||||
9 | President of the Senate; one of whom shall be appointed by the | ||||||
10 | Minority Leader of the House; and one of whom shall be | ||||||
11 | appointed by the Minority Leader of the Senate. Designees | ||||||
12 | shall be appointed within 60 days after a vacancy. No fewer | ||||||
13 | than 4 of the 8 voting members shall consist of low-income | ||||||
14 | residents or residents of environmental justice communities. | ||||||
15 | At least one of the Board members shall be a representative of | ||||||
16 | organized labor. All meetings shall be accessible, with | ||||||
17 | rotating locations, call-in options, and materials and agendas | ||||||
18 | circulated well in advance, and there shall also be | ||||||
19 | opportunities for input outside of meetings from those with | ||||||
20 | limited capacity and ability to attend, via one-on-one | ||||||
21 | meetings, surveys, and calls. | ||||||
22 | Board members shall serve without compensation, but may be | ||||||
23 | reimbursed for necessary expenses incurred in the performance | ||||||
24 | of their duties from funds appropriated for that purpose. Each | ||||||
25 | member appointed shall have at least 5 years of experience in | ||||||
26 | business development or economic development. The Department |
| |||||||
| |||||||
1 | of Commerce and Economic Opportunity shall provide | ||||||
2 | administrative support to the Board, including the selection | ||||||
3 | of a Department staff member to serve as a Board Liaison | ||||||
4 | between the Department and the Advisory Board. | ||||||
5 | (c) All final actions by the Board pursuant to this | ||||||
6 | subsection (c) shall require approval by a simple majority of | ||||||
7 | the Board. The Board shall have the following duties: | ||||||
8 | (1) reviewing applications and extensions for | ||||||
9 | designation as a Clean Energy Empowerment Zone, including | ||||||
10 | Department recommendations, testimony from public | ||||||
11 | hearings, public comment, and supporting materials; | ||||||
12 | (2) voting to approve, disapprove, or modify | ||||||
13 | applications for designation and extensions as a Clean | ||||||
14 | Energy Empowerment Zones; | ||||||
15 | (3) the approval of tax credits under the Clean Energy | ||||||
16 | Empowerment Zone Tax Credit Act; and | ||||||
17 | (4) modifying applications for designation or | ||||||
18 | extensions as a Clean Energy Empowerment Zone before | ||||||
19 | approval. | ||||||
20 | (d) Deadlines for responses by the Board. Within 60 days | ||||||
21 | after submission of applications or tax credits, pursuant to | ||||||
22 | subsection (c) of this Section, to the Board by the | ||||||
23 | Department, the Board shall approve, disapprove, or modify | ||||||
24 | applications for certification of regions as Clean Energy | ||||||
25 | Empowerment Zones. If the Board does not take final action on a | ||||||
26 | submission within 60 days after the submission, the |
| |||||||
| |||||||
1 | application submitted by the Department shall be considered | ||||||
2 | approved, and the regions proposed in the application shall be | ||||||
3 | certified as Clean Energy Empowerment Zones. | ||||||
4 | Section 20-25. Incentives for renewable energy enterprises | ||||||
5 | located within a Clean Energy Empowerment Zone.
| ||||||
6 | (a) Renewable energy enterprises located in Clean Energy | ||||||
7 | Empowerment Zones are eligible to apply for a State income tax | ||||||
8 | credit under the Clean Energy Empowerment Zone Tax Credit Act.
| ||||||
9 | (b) Renewable energy enterprises located in Clean Energy | ||||||
10 | Empowerment Zones are eligible to receive an investment credit | ||||||
11 | subject to the requirements of paragraph (1) of subsection (f) | ||||||
12 | of Section 201 of the Illinois Income Tax Act.
| ||||||
13 | (c) Renewable energy enterprises are eligible to purchase | ||||||
14 | building materials exempt from use and occupation taxes to be | ||||||
15 | incorporated into their renewable energy projects within the | ||||||
16 | Clean Energy Empowerment Zone when purchased from a retailer | ||||||
17 | within the Clean Energy Empowerment Zone under Section 5k-5 of | ||||||
18 | the Retailers' Occupation Tax Act.
| ||||||
19 | (d) Renewable energy enterprises located in a Clean Energy | ||||||
20 | Empowerment Zone that meet the qualifications of Section | ||||||
21 | 9-222.1B of the Public Utilities Act are exempt, in part or in | ||||||
22 | whole, from State and local taxes on gas and electricity.
| ||||||
23 | (e) Preference for procurements shall be conducted by the | ||||||
24 | Illinois Power Agency as described in subparagraph (P) of | ||||||
25 | paragraph (1) of subsection (c) of Section 1-75 of the |
| |||||||
| |||||||
1 | Illinois Power Agency Act.
| ||||||
2 | Section 20-30. State incentives regarding public services | ||||||
3 | and physical infrastructure.
| ||||||
4 | (a) The State Treasurer is authorized and encouraged to | ||||||
5 | place deposits of State funds with financial institutions | ||||||
6 | doing business in a Clean Energy Empowerment Zone.
| ||||||
7 | (b) This Act does not restrict tax incentive financing | ||||||
8 | under Division 74.4 of Article 11 of the Illinois Municipal | ||||||
9 | Code.
| ||||||
10 | Section 20-35. Supporting impacted communities.
| ||||||
11 | (a) No later than July 1, 2021, the Department shall | ||||||
12 | develop a process for accepting applications from units of | ||||||
13 | local government included in Clean Energy Empowerment Zones to | ||||||
14 | mitigate the impact of an annual reduction of at least 30% in | ||||||
15 | the sum of property tax revenue or other direct payments, or | ||||||
16 | both, from fossil fuel power plants or coal mines to local | ||||||
17 | governments due to the retirement, or reduced operation, of | ||||||
18 | the power plant or mine that occurred after January 1, 2016. In | ||||||
19 | the case of reduced operation, the proposal may only be | ||||||
20 | accepted if the reduction in operation is reasonably expected | ||||||
21 | to be permanent. The Department shall accept applications on | ||||||
22 | an ongoing basis after beginning the program. Local government | ||||||
23 | units may submit applications jointly. | ||||||
24 | (b) The Department shall use available funds from the |
| |||||||
| |||||||
1 | Energy Community Reinvestment Fund, subject to the provisions | ||||||
2 | of subsection (c) of Section 20-70, to provide payments to | ||||||
3 | communities for a period of no longer than 5 years from the | ||||||
4 | approval of their proposal, subject to the following | ||||||
5 | restrictions: | ||||||
6 | (1) Payments shall be assessed based on need, taking | ||||||
7 | into consideration the net amount of any increase in | ||||||
8 | payments from any other State source, including, but not | ||||||
9 | limited to, funding provided based on an evidence-based | ||||||
10 | funding formula developed by the Illinois State Board of | ||||||
11 | Education. | ||||||
12 | (2) The highest annual payment to the unit of local | ||||||
13 | government cannot exceed the lower value of either (i) the | ||||||
14 | average annual sum of property tax and other direct | ||||||
15 | payments from the fossil fuel power plant or coal mine to | ||||||
16 | the unit of local government from the most recent 3 | ||||||
17 | taxable years before the reduction or cessation of | ||||||
18 | operation of the fossil fuel power plant or coal mine, or | ||||||
19 | (ii) the difference between projected local government | ||||||
20 | revenue for the years for which assistance is requested | ||||||
21 | (taking into account reasonably anticipated new revenue | ||||||
22 | sources) and the average local government revenue from the | ||||||
23 | most recent 3 taxable years before the reduction or | ||||||
24 | cessation of fossil fuel power plant or coal mine | ||||||
25 | operation. The Department may choose to consider budget | ||||||
26 | information from prior years if doing so allows the |
| |||||||
| |||||||
1 | Department to better measure the revenue impacts of the | ||||||
2 | energy transition. | ||||||
3 | (3) The Department shall not provide funding under | ||||||
4 | this Program that exceeds the amount specified in this | ||||||
5 | paragraph (3) to any local government unit. Each unit of | ||||||
6 | local government shall not be granted by the Department a | ||||||
7 | total amount of funding over the lifetime of this Program, | ||||||
8 | for each fossil fuel power plant or coal mine, that is | ||||||
9 | greater than 5 times the average annual sum of property | ||||||
10 | tax payments and other direct payments from the fossil | ||||||
11 | fuel power plant or coal mine to the unit of local | ||||||
12 | government, calculated based on the most recent 3 taxable | ||||||
13 | years that occurred before the reduction or cessation of | ||||||
14 | operation of the fossil fuel power plant or coal mine. | ||||||
15 | (4) The Department may develop a payment schedule that | ||||||
16 | phases out support over time, based on its analysis of | ||||||
17 | available present and anticipated future funding in the | ||||||
18 | Energy Community Reinvestment Fund or other reasons | ||||||
19 | consistent with the purposes of this Act. | ||||||
20 | (5) If the total amount of qualified proposals exceeds | ||||||
21 | the available present and anticipated future funding in | ||||||
22 | the Energy Community Reinvestment Fund, the Department may | ||||||
23 | prorate payments to units of local government, or | ||||||
24 | prioritize communities for investment based on an | ||||||
25 | environmental justice screen in coordination with the | ||||||
26 | Commission on Environmental Justice, and input from |
| |||||||
| |||||||
1 | stakeholders. The Department shall allocate funding in an | ||||||
2 | equitable and effective manner. Nothing in this Act shall | ||||||
3 | be interpreted to infer that units of local government | ||||||
4 | have a right to revenue replacement from the State. | ||||||
5 | (6) Funding allocated under this program may not be | ||||||
6 | used to support fossil fuel power plants, nuclear power | ||||||
7 | plants, or coal mines in any form. Any local government | ||||||
8 | unit that uses funds provided under this Act to support | ||||||
9 | fossil fuel power plants, nuclear power plants, or coal | ||||||
10 | mines shall reimburse the State for all funding used for | ||||||
11 | that purpose. If requested, the Department shall provide | ||||||
12 | guidance to local government units on whether a proposed | ||||||
13 | use of funds is considered a violation of this | ||||||
14 | requirement. | ||||||
15 | (7) At least once every 2 years following the | ||||||
16 | allocation of funds for this program, the Department shall | ||||||
17 | publish a document available online detailing the | ||||||
18 | allocation of funds, including a map that shows the | ||||||
19 | geographic distribution of the funds and the locations of | ||||||
20 | Clean Energy Empowerment Zones. | ||||||
21 | (c) The Department shall contact all units of local | ||||||
22 | government in Clean Energy Empowerment Zones and provide | ||||||
23 | information on the application process for funding under this | ||||||
24 | Section and a reasonable estimate of total funding that will | ||||||
25 | be available for this program. The Department shall request | ||||||
26 | that applications for funding contain the information |
| |||||||
| |||||||
1 | necessary for the Department to evaluate the fiscal impact of | ||||||
2 | the energy transition on communities located in Clean Energy | ||||||
3 | Empowerment Zones; however the Department shall allow for | ||||||
4 | reasonable flexibility in the applications to accommodate | ||||||
5 | local government units that may have less resources available | ||||||
6 | to prepare an application. The Department shall, to the extent | ||||||
7 | practical, assist local government units in the application | ||||||
8 | process. | ||||||
9 | (d) The Department shall develop rules to implement the | ||||||
10 | provisions of this Section. | ||||||
11 | Section 20-40. Clean Energy Empowerment Task Forces. | ||||||
12 | (a) The Department and the Board shall work with local | ||||||
13 | stakeholders in Clean Energy Empowerment Zones to support the | ||||||
14 | convening of local Clean Energy Empowerment Task Forces. | ||||||
15 | (b) Local Clean Energy Empowerment Task Forces shall | ||||||
16 | include a broad range of local stakeholders to inform | ||||||
17 | transition needs and include, at a minimum, elected | ||||||
18 | representatives from municipal and State governments, | ||||||
19 | operators of local power plants or mines, multiple | ||||||
20 | representatives from community-based organizations, local | ||||||
21 | environmental, fish, or wildlife groups, organized labor, and | ||||||
22 | the Illinois Environmental Protection Agency. | ||||||
23 | (c) The Board shall put forward requests for proposals for | ||||||
24 | third-party facilitators for Task Forces in prioritized Clean | ||||||
25 | Energy Empowerment Zones based on need and those facing recent |
| |||||||
| |||||||
1 | or near-term retirements of plants or mines. | ||||||
2 | (d) The Department shall work with local Task Forces to | ||||||
3 | develop local transition plans that identify economic, | ||||||
4 | workforce, and environmental health needs with strategies to | ||||||
5 | mitigate energy transition impacts and any accompanying | ||||||
6 | funding requests from the Energy Community Reinvestment Fund. | ||||||
7 | (e) As part of developing local transition plans, the | ||||||
8 | Department shall work with third-party facilitators and Task | ||||||
9 | Force members to gather and incorporate public comment and | ||||||
10 | feedback into a finalized transition plan. | ||||||
11 | (f) If the Department determines that a fossil fuel power | ||||||
12 | plant owner has failed to engage productively in stakeholder | ||||||
13 | meetings and with Clean Energy Empowerment Zone Task Forces, | ||||||
14 | the Department shall submit a notification to the Illinois | ||||||
15 | Environmental Protection Agency for enforcement actions and | ||||||
16 | the assessment of fees as described in Section 9.16 of the | ||||||
17 | Environmental Protection Act. | ||||||
18 | Section 20-45. Energy Transition Workforce Commission.
| ||||||
19 | (a) The Energy Transition Workforce Commission is hereby | ||||||
20 | created within the Department of Commerce and Economic | ||||||
21 | Opportunity.
| ||||||
22 | (b) The Commission shall consist of the following 8 | ||||||
23 | members: | ||||||
24 | (1) the Director of Commerce and Economic Opportunity, | ||||||
25 | or his or her designee, who shall serve as chairperson; |
| |||||||
| |||||||
1 | (2) the Director of Labor, or his or her designee; | ||||||
2 | (3) the 3 program administrators of the Clean Jobs | ||||||
3 | Workforce Hubs Program; and | ||||||
4 | (4) 3 members appointed by the Governor, with the | ||||||
5 | advice and consent of the Senate, of which at least one | ||||||
6 | shall be from organized labor and at least one shall be a | ||||||
7 | resident of an environmental justice community. | ||||||
8 | Designees shall be appointed within 60 days after a | ||||||
9 | vacancy. | ||||||
10 | (c) Members of the Commission shall serve without | ||||||
11 | compensation, but may be reimbursed for necessary expenses | ||||||
12 | incurred in the performance of their duties from funds | ||||||
13 | appropriated for that purpose. The Department of Commerce and | ||||||
14 | Economic Opportunity shall provide administrative support to | ||||||
15 | the Commission.
| ||||||
16 | (d) Within 120 days after the effective date of this Act, | ||||||
17 | the Commission shall produce an Energy Transition Workforce | ||||||
18 | Report regarding the anticipated impact of the energy | ||||||
19 | transition and a comprehensive set of recommendations to | ||||||
20 | address changes to the Illinois workforce during the period of | ||||||
21 | 2020 through 2050, or a later year. The report shall contain | ||||||
22 | the following elements, designed to be used for the programs | ||||||
23 | created in this Act:
| ||||||
24 | (1) Information related to the impact on current | ||||||
25 | workers, including:
| ||||||
26 | (A) a comprehensive accounting of all employees |
| |||||||
| |||||||
1 | who currently work in fossil fuel energy generation, | ||||||
2 | nuclear energy generation, and coal mining in the | ||||||
3 | State; this shall include information on their | ||||||
4 | location, employer, salary ranges, full-time or | ||||||
5 | part-time status, nature of their work, educational | ||||||
6 | attainment, union status, and other factors the | ||||||
7 | Commission finds relevant; the Commission shall keep a | ||||||
8 | confidential list of these employees and the | ||||||
9 | information necessary to identify them for the purpose | ||||||
10 | of their eligibility to participate in programs | ||||||
11 | designed for their benefit; | ||||||
12 | (B) the anticipated schedule of closures of fossil | ||||||
13 | fuel power plants, nuclear power plants, and coal | ||||||
14 | mines across the State; when information is | ||||||
15 | unavailable to provide exact data, the report shall | ||||||
16 | include approximations based upon the best available | ||||||
17 | information; | ||||||
18 | (C) an estimate of worker impacts due to scheduled | ||||||
19 | closures, including layoffs, early retirements, salary | ||||||
20 | changes, and other factors the Commission finds | ||||||
21 | relevant; and | ||||||
22 | (D) the likely outcome for workers who are | ||||||
23 | employed by facilities that are anticipated to close | ||||||
24 | or have significant layoffs during their tenure or | ||||||
25 | lifetime. | ||||||
26 | (2) Information regarding impact on communities and |
| |||||||
| |||||||
1 | local governments, including: | ||||||
2 | (A) changes in the revenue for units of local | ||||||
3 | government in areas that currently or recently have | ||||||
4 | had a closure or reduction in operation of a fossil | ||||||
5 | fuel power plant, nuclear power plant, coal mine, or | ||||||
6 | related industry; | ||||||
7 | (B) environmental impacts in areas that currently | ||||||
8 | or recently have had fossil fuel power plants, coal | ||||||
9 | mines, nuclear power plants, or related industry; and | ||||||
10 | (C) economic impacts of the energy transition, | ||||||
11 | including, but not limited to, the supply chain | ||||||
12 | impacts of the energy transition shift toward new | ||||||
13 | energy sources across the State. | ||||||
14 | (3) Information on emerging industries and State | ||||||
15 | economic development opportunities in regions that have | ||||||
16 | historically been the site of fossil fuel power plants, | ||||||
17 | nuclear power plants, or coal mining. | ||||||
18 | (e) Following the completion of each report, or if the | ||||||
19 | Department finds that it is prudent to begin before the | ||||||
20 | completion of a report, the Department shall coordinate with | ||||||
21 | the Commission to create a comprehensive draft plan for | ||||||
22 | designing, maintaining, and funding programs established under | ||||||
23 | this Act, including the Energy Workforce Development Program | ||||||
24 | created under Section 20-50, the Energy Community Development | ||||||
25 | Program created under Section 20-55, and the Displaced Energy | ||||||
26 | Workers Bill of Rights provided under Section 20-60. The draft |
| |||||||
| |||||||
1 | plan shall include, at a minimum, the following information: | ||||||
2 | (1) A detailed accounting of the anticipated costs for | ||||||
3 | each program and the anticipated amount of funding that | ||||||
4 | will be provided for each program. | ||||||
5 | (2) Information on the locations at which each program | ||||||
6 | shall have services provided. If this information is not | ||||||
7 | yet known by the Department at the time of the plan's | ||||||
8 | drafting, the Department shall generally explain how they | ||||||
9 | intend to determine the program locations. | ||||||
10 | Within 120 days after the effective date of this Act, the | ||||||
11 | Department shall publish the draft plan online. The Department | ||||||
12 | shall take public comments on the draft plan for a period of no | ||||||
13 | less than 45 days and publish the final plan within 30 days | ||||||
14 | after the closing of the comment period. | ||||||
15 | (f) The Department shall periodically review its findings | ||||||
16 | in the developed reports and make modifications to the report | ||||||
17 | and programs based on new findings. The Department shall | ||||||
18 | conduct a comprehensive reevaluation of the report, and | ||||||
19 | publish a modified version along with a new draft plan, on each | ||||||
20 | of the following years following initial publication: 2023; | ||||||
21 | 2027; 2030; 2035; 2040; and any year thereafter which the | ||||||
22 | Department determines is necessary or prudent.
| ||||||
23 | Section 20-50. Energy Workforce Development Program.
| ||||||
24 | (a) The purpose of the Energy Workforce Development | ||||||
25 | Program is to proactively assist energy workers in their |
| |||||||
| |||||||
1 | search for economic opportunity. | ||||||
2 | (b) The Director of Commerce and Economic Opportunity | ||||||
3 | shall design, develop, and administer the Energy Workforce | ||||||
4 | Development Program. The Energy Workforce Development Program | ||||||
5 | shall include the following elements: | ||||||
6 | (1) comprehensive career services for displaced energy | ||||||
7 | workers, including advising displaced energy workers | ||||||
8 | looking for new positions on finding new employment or | ||||||
9 | preparing for retirement; | ||||||
10 | (2) communication services to provide displaced energy | ||||||
11 | workers advance notice of any power plant or coal mine | ||||||
12 | closures that are likely to result in a loss of employment | ||||||
13 | for the energy worker; | ||||||
14 | (3) administrative assistance for displaced energy | ||||||
15 | workers in applying for programs provided by the State, | ||||||
16 | the federal government, nonprofit organizations, or other | ||||||
17 | programs that are designed to offer career or financial | ||||||
18 | assistance; | ||||||
19 | (4) the creation and maintenance of a registry of all | ||||||
20 | persons in Illinois who qualify as an energy worker to use | ||||||
21 | for coordination with programs created under this Act or | ||||||
22 | other benefits for those workers, including all | ||||||
23 | information necessary or beneficial for the implementation | ||||||
24 | of this Act; | ||||||
25 | (5) the management of funding for services outlined in | ||||||
26 | this Section; and |
| |||||||
| |||||||
1 | (6) financial advice for displaced energy workers | ||||||
2 | designed to assist workers with retirement, a change in | ||||||
3 | positions, pursuing an education, or other goals that the | ||||||
4 | energy worker has identified. | ||||||
5 | (c) In administering the Energy Workforce Development | ||||||
6 | Program, the Department shall develop and implement the | ||||||
7 | Program with the following goals:
| ||||||
8 | (1) to use the recommendations and information | ||||||
9 | contained in the report created under Section 20-45 to | ||||||
10 | proactively plan for each phase of the energy transition | ||||||
11 | in Illinois;
| ||||||
12 | (2) to increase access to the services contained in | ||||||
13 | this Program by locating services in different regions of | ||||||
14 | the State as dictated by the anticipated schedule of power | ||||||
15 | plant and coal mine closures and regional economic | ||||||
16 | changes; | ||||||
17 | (3) to maximize the efficiency of resources used;
| ||||||
18 | (4) to design the Energy Workforce Development Program | ||||||
19 | to work in collaboration with the Displaced Energy Workers | ||||||
20 | Bill of Rights; and
| ||||||
21 | (5) any other goals identified by the Department.
| ||||||
22 | Section 20-55. Energy Community Development Program.
| ||||||
23 | (a) The purpose of the Energy Community Development | ||||||
24 | Program is to proactively assist Clean Energy Empowerment Zone | ||||||
25 | communities in their search for economic opportunities leading |
| |||||||
| |||||||
1 | up to and after the closure of a fossil fuel power plant, | ||||||
2 | nuclear power plant, or coal mine. | ||||||
3 | (b) The Director of Commerce and Economic Opportunity | ||||||
4 | shall, subject to appropriation, administer the Energy | ||||||
5 | Community Development Program. In administering the Energy | ||||||
6 | Community Development Program, the Department shall: | ||||||
7 | (1) assist local governments in Clean Energy | ||||||
8 | Empowerment Zones in finding private and public sector | ||||||
9 | partners to invest in regional development; | ||||||
10 | (2) assist units of local government in finding and | ||||||
11 | negotiating terms with businesses willing to relocate or | ||||||
12 | open new enterprises in regions impacted; | ||||||
13 | (3) provide coordination services to connect | ||||||
14 | organizations or persons seeking to use tax credits | ||||||
15 | created under Act with units of local government; | ||||||
16 | (4) conduct outreach and educational events for | ||||||
17 | private sector organizations for the purpose of attracting | ||||||
18 | investment in Clean Energy Empowerment Zones; and | ||||||
19 | (5) gather and incorporate public comment and feedback | ||||||
20 | so that local knowledge, priorities, and strengths help | ||||||
21 | shape and guide private and public development. | ||||||
22 | (c) In administering the Energy Community Development | ||||||
23 | Program, the Department shall develop and implement the | ||||||
24 | Program with the following goals:
| ||||||
25 | (1) to increase private sector development in Clean | ||||||
26 | Energy Empowerment Zones;
|
| |||||||
| |||||||
1 | (2) to replace and improve employment opportunities in | ||||||
2 | Clean Energy Empowerment Zones for community members;
| ||||||
3 | (3) to provide resources for Clean Energy Empowerment | ||||||
4 | Zone communities across the State, and avoid geographic | ||||||
5 | preferences in the allocation of resources; and
| ||||||
6 | (4) to create a healthful environment for community | ||||||
7 | members in Clean Energy Empowerment Zones.
| ||||||
8 | Section 20-60. Displaced Energy Workers Bill of Rights.
| ||||||
9 | (a) The Department of Commerce and Economic Opportunity | ||||||
10 | shall implement the Displaced Energy Workers Bill of Rights | ||||||
11 | and shall be responsible for the implementation of the | ||||||
12 | Displaced Energy Workers Bill of Rights programs and rights | ||||||
13 | created under this Section. The Department shall provide the | ||||||
14 | following benefits to displaced energy workers listed in | ||||||
15 | paragraphs (1) through (4) of this subsection: | ||||||
16 | (1) Advance notice of power plant or coal mine | ||||||
17 | closure. | ||||||
18 | (A) The Department of Commerce and Economic | ||||||
19 | Opportunity shall notify all energy workers of the | ||||||
20 | upcoming closure of any qualifying facility at least 2 | ||||||
21 | years in advance of the scheduled closing date. | ||||||
22 | (B) In providing the advance notice described in | ||||||
23 | this paragraph (1), the Department shall take | ||||||
24 | reasonable steps to ensure that all displaced energy | ||||||
25 | workers are educated on the various programs available |
| |||||||
| |||||||
1 | through the Department to assist with the energy | ||||||
2 | transition. | ||||||
3 | (2) Employment assistance and career services. The | ||||||
4 | Department shall provide displaced energy workers with | ||||||
5 | assistance in finding new sources of employment through | ||||||
6 | the Energy Workforce Development Program established in | ||||||
7 | this Act. | ||||||
8 | (3) Full-tuition scholarship for Illinois institutions | ||||||
9 | and trade schools. | ||||||
10 | (A) The Department shall provide any displaced | ||||||
11 | energy worker with a full-tuition scholarship to any | ||||||
12 | of the following programs: (i) public universities in | ||||||
13 | this State; (ii) trade schools in this State; (iii) | ||||||
14 | community college programs in this State; or (iv) | ||||||
15 | union training programs in this State. The Department | ||||||
16 | may set cost caps on the maximum amount of tuition that | ||||||
17 | may be funded. | ||||||
18 | (B) The Department shall provide information and | ||||||
19 | consultation to displaced energy workers on the | ||||||
20 | various educational opportunities available through | ||||||
21 | this Program, and advise workers on which | ||||||
22 | opportunities meet their needs and preferences. | ||||||
23 | (C) Displaced energy workers who are eligible for | ||||||
24 | scholarships created under this Section by the date of | ||||||
25 | their enrollment shall be considered eligible for | ||||||
26 | scholarship funding for up to 4 years or until |
| |||||||
| |||||||
1 | completion of their degree or certification, whichever | ||||||
2 | is the shorter duration. | ||||||
3 | (4) Financial Planning Services. Displaced energy | ||||||
4 | workers shall be entitled to services as described in the | ||||||
5 | energy worker Programs in this subsection, including | ||||||
6 | financial planning services. | ||||||
7 | (b) The owners of power plants with a nameplate capacity | ||||||
8 | of greater than 300 megawatts and the owners of coal mines | ||||||
9 | located in Illinois shall be required to comply with the | ||||||
10 | requirements set out in this subsection (b). The owners shall | ||||||
11 | be required to take the following actions: | ||||||
12 | (1) provide employment information for energy workers; | ||||||
13 | prior to the closure of an electric generating unit or | ||||||
14 | mine, the owners of the power plant or mine shall provide | ||||||
15 | energy workers information on whether there are employment | ||||||
16 | opportunities provided by their employer; | ||||||
17 | (2) provide extended health insurance for displaced | ||||||
18 | energy workers who are former employees of the power plant | ||||||
19 | owner that (A) costs no more than the average monthly | ||||||
20 | premium paid by the worker over the last 12 months and (B) | ||||||
21 | offers the same level of benefits, including, but not | ||||||
22 | limited to, coverage, in-network providers, deductibles, | ||||||
23 | and copayments covered during the previous 12 months; | ||||||
24 | companies that sell energy into auctions managed by the | ||||||
25 | Illinois Power Agency shall be required to offer 2 years | ||||||
26 | of health insurance following closure of an electric |
| |||||||
| |||||||
1 | generating unit to employees who are not employed in new | ||||||
2 | positions that offer health insurance upon: (i) plant | ||||||
3 | closure; or (ii) employment termination; the Department | ||||||
4 | may require funding for health insurance to be provided in | ||||||
5 | advance of employment termination; and | ||||||
6 | (3) maintain responsible retirement account | ||||||
7 | portfolios; employees of qualifying facilities shall have | ||||||
8 | their retirement funds backed by financial tools that are | ||||||
9 | not economically dependent upon the success of their | ||||||
10 | employer's business. | ||||||
11 | Section 20-65. Consideration of energy worker employment.
| ||||||
12 | (a) All State departments and agencies shall conduct a | ||||||
13 | review of the Department of Commerce and Economic | ||||||
14 | Opportunity's registry of energy workers to determine whether | ||||||
15 | any qualified candidates are displaced energy workers before | ||||||
16 | making a final hiring decision for a position in State | ||||||
17 | employment. | ||||||
18 | (b) The Department of Commerce and Economic Opportunity | ||||||
19 | shall inform all State agencies and departments of the | ||||||
20 | obligations created by this Section and take steps to ensure | ||||||
21 | compliance. | ||||||
22 | (c) Nothing in this Section shall be interpreted to | ||||||
23 | indicate that the State is required to hire displaced energy | ||||||
24 | workers for any position. | ||||||
25 | (d) No part of this Section shall be interpreted to be in |
| |||||||
| |||||||
1 | conflict with federal or State civil rights or employment law. | ||||||
2 | Section 20-70. Energy Community Reinvestment Fund.
| ||||||
3 | (a) The General Assembly hereby declares that management | ||||||
4 | of several economic development programs requires a | ||||||
5 | consolidated funding source to improve resource efficiency. | ||||||
6 | The General Assembly specifically recognizes that properly | ||||||
7 | serving communities and workers impacted by the energy | ||||||
8 | transition requires that the Department of Commerce and | ||||||
9 | Economic Opportunity have access to the resources required for | ||||||
10 | the execution of the programs in the Clean Jobs Workforce Hubs | ||||||
11 | Program, the Expanding Clean Energy Entrepreneurship Program, | ||||||
12 | and the Energy Community Reinvestment Act.
| ||||||
13 | The intent of the General Assembly is that the Energy | ||||||
14 | Community Reinvestment Fund is able to provide all funding for | ||||||
15 | development programs created in the Clean Jobs Workforce Hubs | ||||||
16 | Program, the Expanding Clean Energy Entrepreneurship Program, | ||||||
17 | and the Energy Community Reinvestment Act, and that no | ||||||
18 | additional charge is borne by the taxpayers or ratepayers of | ||||||
19 | Illinois absent a deficiency.
| ||||||
20 | (b) The Energy Community Reinvestment Fund is created as a | ||||||
21 | special fund in the State treasury to be used by the Department | ||||||
22 | of Commerce and Economic Opportunity for purposes provided | ||||||
23 | under this Section. The Fund shall be used to fund programs | ||||||
24 | specified under subsection (c). The objective of the Fund is | ||||||
25 | to bring economic development to communities in this State in |
| |||||||
| |||||||
1 | a manner that equitably maximizes economic opportunity in all | ||||||
2 | communities by increasing efficiency of resource allocation | ||||||
3 | across the programs listed in subsection (c). The Department | ||||||
4 | shall include a description of its proposed approach to the | ||||||
5 | design, administration, implementation, and evaluation of the | ||||||
6 | Fund, as part of the Energy Transition Workforce Plan | ||||||
7 | described in this Act. Contracts that will be paid with moneys | ||||||
8 | in the Fund shall be executed by the Department.
| ||||||
9 | (c) The Department shall be responsible for the | ||||||
10 | administration of the Fund and shall allocate funding on the | ||||||
11 | basis of priorities established in this Section. Each year, | ||||||
12 | the Department shall determine the available amount of | ||||||
13 | resources in the Fund that can be allocated to the programs | ||||||
14 | identified in this Section, and allocate the funding | ||||||
15 | accordingly. The Department shall, to the extent practical, | ||||||
16 | consider both the short-term and long-term costs of the | ||||||
17 | programs and allocate, save, or invest funding so that the | ||||||
18 | Department is able to cover both the short-term and long-term | ||||||
19 | costs of these programs using projected revenue. | ||||||
20 | The available funding for each year shall be allocated | ||||||
21 | from the Fund in the following order of priority: | ||||||
22 | (1) for costs related to the Clean Jobs Workforce Hubs | ||||||
23 | program in Part 5 of the Clean Jobs, Workforce and | ||||||
24 | Contractor Equity Act, up to $26,000,000 annually or 26% | ||||||
25 | of the available funding, whichever is less; | ||||||
26 | (2) for costs related to the program described by Part |
| |||||||
| |||||||
1 | 10 of the Clean Energy, Workforce and Contractor Equity | ||||||
2 | Act, up to $21,000,000 annually or 21% of the available | ||||||
3 | funding, whichever is less; | ||||||
4 | (3) for costs related to the Energy Community | ||||||
5 | Development programs in this Act, up to $2,000,000 | ||||||
6 | annually or 2% of the available funding, whichever is | ||||||
7 | less; | ||||||
8 | (4) for costs related to the Energy Workforce | ||||||
9 | Development programs and the Displaced Energy Workers Bill | ||||||
10 | of Rights in this Act, including all programs created by | ||||||
11 | the Energy Transition Workforce Commission, up to | ||||||
12 | $13,000,000 annually or 21% of the available funding, | ||||||
13 | whichever is less. If 21% of the available funding is more | ||||||
14 | than $13,000,000, the amount over $13,000,000 is allocated | ||||||
15 | to the items in (1) through (3) by their relative | ||||||
16 | percentages until those programs are fully funded; | ||||||
17 | (5) for costs related to the Returning Residents Clean | ||||||
18 | Jobs Training Program described in Part 20 of the Clean | ||||||
19 | Jobs, Workforce and Contractor Equity Act, up to | ||||||
20 | $6,000,000 annually or 6% of the available funding, | ||||||
21 | whichever is less; | ||||||
22 | (6) for costs related to the Illinois Clean Energy | ||||||
23 | Black, Indigenous, and People of Color Primes Contractor | ||||||
24 | Accelerator Program described in Part 15 of the Clean | ||||||
25 | Jobs, Workforce and Contractor Equity Act, up to | ||||||
26 | $9,000,000 annually or 9% of the available funding, |
| |||||||
| |||||||
1 | whichever is less; | ||||||
2 | (7) for costs, up to $100,000,000 annually, to support | ||||||
3 | units of local government in Clean Energy Empowerment | ||||||
4 | Zones, as described in Section 20-35; | ||||||
5 | (8) if the programs identified in paragraphs (1) | ||||||
6 | through (7) are fully funded and the Department reasonably | ||||||
7 | predicts they will be adequately funded in future years, | ||||||
8 | the Department shall transfer an amount equal to the | ||||||
9 | year's tax credits awarded through the programs of up to | ||||||
10 | $22,500,000 annually go the General Revenue Fund to offset | ||||||
11 | revenue reductions from tax credits provided under the | ||||||
12 | Clean Energy Empowerment Zone Tax Credit Act; | ||||||
13 | (9) to support the Low Income Home Energy Assistance | ||||||
14 | Program, up to $30,000,000 annually, to support additional | ||||||
15 | costs from the Percentage of Income Payment Program | ||||||
16 | expansion and energy assistance expansion; | ||||||
17 | (10) for the initial capital funding of the Clean | ||||||
18 | Energy Jobs and Justice Fund, $100,000,000 in the year | ||||||
19 | 2022, or if the full funding is not available, the | ||||||
20 | Department may allocate these funds over several years as | ||||||
21 | quickly as is feasible; and | ||||||
22 | (11) if the programs identified in paragraphs (1) | ||||||
23 | through (10) are fully funded and the Department | ||||||
24 | reasonably predicts they shall be adequately funded in | ||||||
25 | future years, the Department shall transfer all surplus to | ||||||
26 | the General Revenue Fund. |
| |||||||
| |||||||
1 | (d) No later than June 1, 2021, and by June 1 of each year | ||||||
2 | thereafter, the Department shall submit a notification to the | ||||||
3 | Illinois Environmental Protection Agency for the purpose of | ||||||
4 | implementing the energy community reinvestment fee as | ||||||
5 | described in Section 9.16 of the Environmental Protection Act. | ||||||
6 | The notification shall include the revenue and spending | ||||||
7 | requirements for the programs identified under the Energy | ||||||
8 | Community Reinvestment Act for the upcoming fiscal year, as | ||||||
9 | well as the projected spending for all program years through | ||||||
10 | Fiscal Year 2036. The projected revenue and spending need | ||||||
11 | identified for any program year shall be no less than | ||||||
12 | $400,000,000 per year for the calendar years 2021 through 2025 | ||||||
13 | and $200,000,000 per year for all calendar years starting in | ||||||
14 | 2026 that the Illinois electric sector generates greenhouse | ||||||
15 | gas emissions. | ||||||
16 | (e) If there is a funding shortfall for items identified | ||||||
17 | in paragraphs (1) through (4) of subsection (c), the | ||||||
18 | Department shall submit a request for funds to applicable | ||||||
19 | electric utilities for funds collected under subsection (k) of | ||||||
20 | Section 1-75 of the Illinois Power Agency Act up to | ||||||
21 | $25,000,000 per year to cover the shortfall. Upon notification | ||||||
22 | by utilities that sufficient funds are available for use under | ||||||
23 | the terms of paragraph (7) of subsection (k) of Section 1-75 of | ||||||
24 | the Illinois Power Agency Act, the Department shall send an | ||||||
25 | invoice to the applicable utilities for the amount requested. | ||||||
26 | Upon receipt, the funds shall be deposited into the Energy |
| |||||||
| |||||||
1 | Community Reinvestment Fund. | ||||||
2 | (f) The Department shall, on an ongoing basis, seek out | ||||||
3 | and apply for funding from alternative sources to cover the | ||||||
4 | costs of these programs. Alternative sources may include the | ||||||
5 | federal government, other State programs, private foundations, | ||||||
6 | donors, or other opportunities for funding. The Department | ||||||
7 | shall, as described in subsection (c), use any additional | ||||||
8 | funding obtained for these programs to reduce or eliminate any | ||||||
9 | costs borne by taxpayers and ratepayers. Nothing in this | ||||||
10 | subsection (f) shall be interpreted to reduce or remove the | ||||||
11 | revenue requirements obtained by the Illinois Environmental | ||||||
12 | Protection Agency as described in subsection (d). | ||||||
13 | (g) Notwithstanding any other law to the contrary, the | ||||||
14 | Energy Community Reinvestment Fund is not subject to sweeps, | ||||||
15 | administrative chargebacks, or any other fiscal or budgetary | ||||||
16 | maneuver that would in any way transfer any amounts from the | ||||||
17 | Energy Community Reinvestment Fund into any other fund of the | ||||||
18 | State. | ||||||
19 | (h) The Department is granted all powers necessary for the | ||||||
20 | implementation of this Section. | ||||||
21 | Section 20-75. Administrative review. All final | ||||||
22 | administrative decisions, including, but not limited to, | ||||||
23 | funding allocation and rules issued by the Department under | ||||||
24 | this Act are subject to judicial review under the | ||||||
25 | Administrative Review Law. No action may be commenced under |
| |||||||
| |||||||
1 | this Section prior to 60 days after the complainant has given | ||||||
2 | notice in writing of the action to the Department. | ||||||
3 | Article 25. Clean Energy Empowerment Zone Tax Credit Act | ||||||
4 | Section 25-1. Short title. This Article may be cited as | ||||||
5 | the Clean Energy Empowerment Zone Tax Credit Act. References | ||||||
6 | in this Article to "this Act" mean this Article. | ||||||
7 | Part 1. | ||||||
8 | Section 25-100. Definitions. As used in this Part 1:
| ||||||
9 | "Applicant" means a person that is operating a business | ||||||
10 | located within the State of Illinois and has applied for an | ||||||
11 | income tax credit through a program under this Act.
| ||||||
12 | "Basic wage" means compensation for employment that meets | ||||||
13 | the prevailing wage standards as defined by the Department.
| ||||||
14 | "Certificate" means the tax credit certificate issued by | ||||||
15 | the Department under Section 25-125.
| ||||||
16 | "Certificate of eligibility" means the certificate issued | ||||||
17 | by the Department under Section 25-110.
| ||||||
18 | "Credit" means the amount awarded by the Department to an | ||||||
19 | applicant by issuance of a certificate under Section 25-125 | ||||||
20 | for each new full-time equivalent employee hired or job | ||||||
21 | created.
| ||||||
22 | "Department" means the Department of Commerce and Economic |
| |||||||
| |||||||
1 | Opportunity.
| ||||||
2 | "Director" means the Director of Commerce and Economic | ||||||
3 | Opportunity.
| ||||||
4 | "Former energy worker" means an individual who is | ||||||
5 | employed, or was employed, at a fossil fuel power plant, | ||||||
6 | nuclear power plant, or coal mine, and is listed in the | ||||||
7 | registry of energy workers developed by the Department of | ||||||
8 | Commerce and Economic Opportunity pursuant to Section 20-50 of | ||||||
9 | the Energy Community Reinvestment Act. | ||||||
10 | "Full-time employee" means an individual who is employed | ||||||
11 | at a prevailing wage for at least 35 hours each week, and | ||||||
12 | provided standard worker benefits, or who renders any other | ||||||
13 | standard of service generally accepted by industry custom or | ||||||
14 | practice as full-time employment. An individual for whom a W-2 | ||||||
15 | is issued by a Professional Employer Organization is a | ||||||
16 | full-time employee if he or she is employed in the service of | ||||||
17 | the applicant for a basic wage for at least 35 hours each week | ||||||
18 | or renders any other standard of service generally accepted by | ||||||
19 | industry custom or practice as full-time employment. For the | ||||||
20 | purposes of this Act, such an individual shall be considered a | ||||||
21 | full-time employee of the applicant.
| ||||||
22 | "Incentive period" means the period beginning on July 1 | ||||||
23 | and ending on June 30 of the following year. The first | ||||||
24 | incentive period shall begin on July 1, 2021 and the last | ||||||
25 | incentive period shall end on June 30, 2040.
| ||||||
26 | "New employee" means a full-time employee:
|
| |||||||
| |||||||
1 | (1) who first became employed by an applicant within | ||||||
2 | the incentive period whose hire results in a net increase | ||||||
3 | in the applicant's full-time Illinois employees and who is | ||||||
4 | receiving a prevailing wage as compensation; and | ||||||
5 | (2) who was previously employed in a fossil fuel power | ||||||
6 | plant, nuclear power plant, or coal mine in the State of | ||||||
7 | Illinois that has since closed or is a graduate of | ||||||
8 | training programs as established under Part 5 of the Clean | ||||||
9 | Jobs, Workforce and Contractor Equity Act. | ||||||
10 | "New employee" does not include:
| ||||||
11 | (1) a person who was previously employed in Illinois | ||||||
12 | by the applicant or a related member prior to the onset of | ||||||
13 | the incentive period, unless the new employee is hired for | ||||||
14 | site remediation work; or | ||||||
15 | (2) a person who has a direct or indirect ownership | ||||||
16 | interest of at least 5% in the profits, capital, or value | ||||||
17 | of the applicant or a related member; or | ||||||
18 | (3) a person who has been hired to assist in the | ||||||
19 | production of fossil fuel derived energy directly or | ||||||
20 | indirectly, unless that person has been hired to assist in | ||||||
21 | the deconstruction of a fossil fuel power plant, the | ||||||
22 | deconstruction of a coal mine, the remediation of a site | ||||||
23 | formerly used for fossil fuel power production, or the | ||||||
24 | remediation of a coal mine. | ||||||
25 | "Noncompliance date" means, in the case of an applicant | ||||||
26 | that is not complying with the requirements of this Act, the |
| |||||||
| |||||||
1 | day following the last date upon which the taxpayer was in | ||||||
2 | compliance with the requirements of this Act, as determined by | ||||||
3 | the Director under Section 25-135.
| ||||||
4 | "Professional Employer Organization" has the same meaning | ||||||
5 | as ascribed to that term under Section 5-5 of the Economic | ||||||
6 | Development for a Growing Economy Tax Credit Act. | ||||||
7 | "Professional Employer Organization" does not include a day | ||||||
8 | and temporary labor service agency regulated under the Day and | ||||||
9 | Temporary Labor Services Act.
| ||||||
10 | "Related member" means a person that, with respect to the | ||||||
11 | applicant during any portion of the incentive period, is any | ||||||
12 | one of the following:
| ||||||
13 | (1) An individual, if the individual and the members | ||||||
14 | of the individual's family, as defined in Section 318 of | ||||||
15 | the Internal Revenue Code, own directly, indirectly, | ||||||
16 | beneficially, or constructively, in the aggregate, at | ||||||
17 | least 50% of the value of the outstanding profits, | ||||||
18 | capital, stock, or other ownership interest in the | ||||||
19 | applicant.
| ||||||
20 | (2) A partnership, estate, or trust and any partner or | ||||||
21 | beneficiary, if the partnership, estate, or trust and its | ||||||
22 | partners or beneficiaries own directly, indirectly, | ||||||
23 | beneficially, or constructively, in the aggregate, at | ||||||
24 | least 50% of the profits, capital, stock, or other | ||||||
25 | ownership interest in the applicant.
| ||||||
26 | (3) A corporation, and any party related to the |
| |||||||
| |||||||
1 | corporation, in a manner that would require an attribution | ||||||
2 | of stock from the corporation under the attribution rules | ||||||
3 | of Section 318 of the Internal Revenue Code, if the | ||||||
4 | applicant and any other related member own, in the | ||||||
5 | aggregate, directly, indirectly, beneficially, or | ||||||
6 | constructively, at least 50% of the value of the | ||||||
7 | corporation's outstanding stock.
| ||||||
8 | (4) A corporation and any party related to that | ||||||
9 | corporation in a manner that would require an attribution | ||||||
10 | of stock from the corporation to the party or from the | ||||||
11 | party to the corporation under the attribution rules of | ||||||
12 | Section 318 of the Internal Revenue Code, if the | ||||||
13 | corporation and all such related parties own, in the | ||||||
14 | aggregate, at least 50% of the profits, capital, stock, or | ||||||
15 | other ownership interest in the applicant.
| ||||||
16 | (5) A person to or from whom there is attribution of | ||||||
17 | stock ownership in accordance with subsection (e) of | ||||||
18 | Section 1563 of the Internal Revenue Code, except that for | ||||||
19 | purposes of determining whether a person is a related | ||||||
20 | member under this paragraph (5):
| ||||||
21 | (A) stock owned, directly or indirectly, by or for | ||||||
22 | a partnership shall be considered as owned by any | ||||||
23 | partner having an interest of 20% or more in either the | ||||||
24 | capital or profits of the partnership in proportion to | ||||||
25 | his or her interest in capital or profits, whichever | ||||||
26 | such proportion is the greater;
|
| |||||||
| |||||||
1 | (B) stock owned, directly or indirectly, by or for | ||||||
2 | an estate or trust shall be considered as owned by any | ||||||
3 | beneficiary who has an actuarial interest of 20% or | ||||||
4 | more in such stock, to the extent of such actuarial | ||||||
5 | interest. For purposes of this subparagraph, the | ||||||
6 | actuarial interest of each beneficiary shall be | ||||||
7 | determined by assuming the maximum exercise of | ||||||
8 | discretion by the fiduciary in favor of such | ||||||
9 | beneficiary and the maximum use of such stock to | ||||||
10 | satisfy his or her rights as a beneficiary; and
| ||||||
11 | (C) stock owned, directly or indirectly, by or for | ||||||
12 | a corporation shall be considered as owned by any | ||||||
13 | person who owns 20% or more in value of its stock in | ||||||
14 | that proportion which the value of the stock which the | ||||||
15 | person so owns bears to the value of all the stock in | ||||||
16 | the corporation. | ||||||
17 | Section 25-105. Powers of the Department. The Department, | ||||||
18 | in addition to those powers granted under the Civil | ||||||
19 | Administrative Code of Illinois, is granted and shall have all | ||||||
20 | the powers necessary or convenient to carry out and effectuate | ||||||
21 | the purposes and provisions of this Act, including, but not | ||||||
22 | limited to, power and authority to:
| ||||||
23 | (1) Adopt rules deemed necessary and appropriate for | ||||||
24 | the administration of this Act; establish forms for | ||||||
25 | applications, notifications, contracts, or any other |
| |||||||
| |||||||
1 | agreements; and accept applications at any time during the | ||||||
2 | year and require that all applications be submitted | ||||||
3 | electronically through the Internet.
| ||||||
4 | (2) Provide guidance and assistance to applicants | ||||||
5 | under the provisions of this Act, and cooperate with | ||||||
6 | applicants to promote, foster, and support job creation | ||||||
7 | within this State.
| ||||||
8 | (3) Enter into agreements and memoranda of | ||||||
9 | understanding for participation of and engage in | ||||||
10 | cooperation with agencies of the federal government, units | ||||||
11 | of local government, universities, research foundations or | ||||||
12 | institutions, regional economic development corporations, | ||||||
13 | or other organizations for the purposes of this Act.
| ||||||
14 | (4) Gather information and conduct inquiries, in the | ||||||
15 | manner and by the methods it deems desirable, including, | ||||||
16 | without limitation, gathering information with respect to | ||||||
17 | applicants for the purpose of making any designations or | ||||||
18 | certifications necessary or desirable or to gather | ||||||
19 | information in furtherance of the purposes of this Act.
| ||||||
20 | (5) Establish, negotiate, and effectuate any term, | ||||||
21 | agreement, or other document with any person necessary or | ||||||
22 | appropriate to accomplish the purposes of this Act, and | ||||||
23 | consent, subject to the provisions of any agreement with | ||||||
24 | another party, to the modification or restructuring of any | ||||||
25 | agreement to which the Department is a party.
| ||||||
26 | (6) Provide for sufficient personnel to permit |
| |||||||
| |||||||
1 | administration, staffing, operation, and related support | ||||||
2 | required to adequately discharge its duties and | ||||||
3 | responsibilities described in this Act from funds made | ||||||
4 | available through charges to applicants or from funds as | ||||||
5 | may be appropriated by the General Assembly for the | ||||||
6 | administration of this Act.
| ||||||
7 | (7) Require applicants, upon written request, to issue | ||||||
8 | any necessary authorization to the appropriate federal, | ||||||
9 | State, or local authority or any other person for the | ||||||
10 | release to the Department of information requested by the | ||||||
11 | Department, with the information requested to include, but | ||||||
12 | not be limited to, financial reports, returns, or records | ||||||
13 | relating to the applicant or to the amount of credit | ||||||
14 | allowable under this Act.
| ||||||
15 | (8) Require that an applicant shall at all times keep | ||||||
16 | proper books of record and account in accordance with | ||||||
17 | generally accepted accounting principles consistently | ||||||
18 | applied, with the books, records, or papers related to the | ||||||
19 | agreement in the custody or control of the applicant open | ||||||
20 | for reasonable Department inspection and audits, and | ||||||
21 | including, without limitation, the making of copies of the | ||||||
22 | books, records, or papers.
| ||||||
23 | (9) Take whatever actions are necessary or appropriate | ||||||
24 | to protect the State's interest in the event of | ||||||
25 | bankruptcy, default, foreclosure, or noncompliance with | ||||||
26 | the terms and conditions of financial assistance or |
| |||||||
| |||||||
1 | participation required under this Act, including the power | ||||||
2 | to sell, dispose of, lease, or rent, upon terms and | ||||||
3 | conditions determined by the Director to be appropriate, | ||||||
4 | real or personal property that the Department may recover | ||||||
5 | as a result of these actions.
| ||||||
6 | Section 25-110. Certificate of eligibility for tax credit.
| ||||||
7 | (a) An applicant that has hired a former energy worker or a | ||||||
8 | graduate of training programs as established under the Clean | ||||||
9 | Jobs Workforce and Contractor Equity Act as a new employee | ||||||
10 | during the incentive period may apply for a certificate of | ||||||
11 | eligibility for the credit with respect to that position on or | ||||||
12 | after the date of hire of the new employee. The date of hire | ||||||
13 | shall be the first day on which the employee begins providing | ||||||
14 | services for basic wage compensation.
| ||||||
15 | (b) An applicant may apply for a certificate of | ||||||
16 | eligibility for the credit for more than one new employee on or | ||||||
17 | after the date of hire of each qualifying new employee.
| ||||||
18 | (c) After receipt of an application under this Section, | ||||||
19 | the Department shall issue a certificate of eligibility to the | ||||||
20 | applicant that states the following:
| ||||||
21 | (1) the date and time on which the application was | ||||||
22 | received by the Department and an identifying number | ||||||
23 | assigned to the applicant by the Department;
| ||||||
24 | (2) the maximum amount of the credit the applicant | ||||||
25 | could potentially receive under this Act with respect to |
| |||||||
| |||||||
1 | the new employees listed on the application; and
| ||||||
2 | (3) the maximum amount of the credit potentially | ||||||
3 | allowable on certificates of eligibility issued for | ||||||
4 | applications received prior to the application for which | ||||||
5 | the certificate of eligibility is issued.
| ||||||
6 | Section 25-115. Tax credit.
| ||||||
7 | (a) Subject to the conditions set forth in this Act, an | ||||||
8 | applicant is entitled to a credit against payment of taxes | ||||||
9 | withheld under Section 704A of the Illinois Income Tax Act:
| ||||||
10 | (1) for former energy workers or graduates of Clean | ||||||
11 | Jobs Workforce programs hired as new employees who the | ||||||
12 | applicant hires and retains for a minimum of one year; and
| ||||||
13 | (2) in the amount of:
| ||||||
14 | (A) 20% of the salary paid to the new employee for | ||||||
15 | employees hired and retained for between the time of | ||||||
16 | hiring and one year;
| ||||||
17 | (B) 15% of the salary paid to the new employee for | ||||||
18 | employees hired and retained between one year and 2 | ||||||
19 | years; and
| ||||||
20 | (C) 10% of the salary paid to the new employee for | ||||||
21 | employees hired and retained between 2 years and 3 | ||||||
22 | years.
| ||||||
23 | (b) The Department shall make credit awards under this Act | ||||||
24 | to further job creation.
| ||||||
25 | (c) The credit shall be claimed for the first calendar |
| |||||||
| |||||||
1 | year ending on or after the date on which the certificate is | ||||||
2 | issued by the Department.
| ||||||
3 | (d) The net increase in full-time Illinois employees, | ||||||
4 | measured on an annual full-time equivalent basis, shall be the | ||||||
5 | total number of full-time Illinois employees of the applicant | ||||||
6 | on the final day of the incentive period, minus the number of | ||||||
7 | full-time Illinois employees employed by the employer on the | ||||||
8 | first day of that same incentive period. For purposes of the | ||||||
9 | calculation, an employer that begins doing business in this | ||||||
10 | State during the incentive period, as determined by the | ||||||
11 | Director, shall be treated as having zero Illinois employees | ||||||
12 | on the first day of the incentive period.
| ||||||
13 | (e) The net increase in the number of full-time Illinois | ||||||
14 | employees of the applicant under subsection (d) must be | ||||||
15 | sustained continuously for at least 12 months, starting with | ||||||
16 | the date of hire of a new employee during the incentive period. | ||||||
17 | Eligibility for the credit does not depend on the continuous | ||||||
18 | employment of any particular individual. For purposes of this | ||||||
19 | subsection (e), if a new employee ceases to be employed before | ||||||
20 | the completion of the 12-month period for any reason, the net | ||||||
21 | increase in the number of full-time Illinois employees shall | ||||||
22 | be treated as continuous if a different new employee is hired | ||||||
23 | as a replacement within a reasonable time for the same | ||||||
24 | position. The new employees must be hired to fill positions | ||||||
25 | that the applicant reasonably anticipates will be available | ||||||
26 | for the new employee as a long-term position. For the purposes |
| |||||||
| |||||||
1 | of this subsection (e), "long-term position" means a position | ||||||
2 | that will be available for 3 years or longer.
| ||||||
3 | (f) The Department shall adopt rules to enable an | ||||||
4 | applicant for which a Professional Employer Organization has | ||||||
5 | been contracted to issue W-2s and make payment of taxes | ||||||
6 | withheld under Section 704A of the Illinois Income Tax Act for | ||||||
7 | new employees to retain the benefit of tax credits to which the | ||||||
8 | applicant is otherwise entitled under this Act.
| ||||||
9 | Section 25-120. Maximum amount of credits allowed. The | ||||||
10 | Department shall limit the monetary amount of credits awarded | ||||||
11 | under this Act to no more than $18,000,000 annually during the | ||||||
12 | incentive period. If applications for a greater amount are | ||||||
13 | received, credits shall be allowed on a first-come, | ||||||
14 | first-served basis, based on the date on which each properly | ||||||
15 | completed application for a certificate of eligibility is | ||||||
16 | received by the Department. If more than one certificate of | ||||||
17 | eligibility is received on the same day, the credits shall be | ||||||
18 | awarded based on the time of submission for that particular | ||||||
19 | day. | ||||||
20 | Section 25-125. Application for award of tax credit; tax | ||||||
21 | credit certificate.
| ||||||
22 | (a) On or after the conclusion of the 12-month period, or | ||||||
23 | other period, after a new employee has been hired, for the | ||||||
24 | purposes of subsection (a) of Section 25-115, an applicant |
| |||||||
| |||||||
1 | shall file with the Department an application for award of a | ||||||
2 | credit. The application shall include the following:
| ||||||
3 | (1) the names, Social Security numbers, job | ||||||
4 | descriptions, salary or wage rates, and dates of hire of | ||||||
5 | the new employees with respect to whom the credit is being | ||||||
6 | requested;
| ||||||
7 | (2) a certification that each new employee listed has | ||||||
8 | been retained on the job for at least one year from the | ||||||
9 | date of hire;
| ||||||
10 | (3) the number of new employees hired by the applicant | ||||||
11 | during the incentive period;
| ||||||
12 | (4) the net increase in the number of full-time | ||||||
13 | Illinois employees of the applicant, including the new | ||||||
14 | employees listed in the request, between the beginning of | ||||||
15 | the incentive period and the dates on which the new | ||||||
16 | employees listed in the request were hired;
| ||||||
17 | (5) an agreement that the Director is authorized to | ||||||
18 | verify with the appropriate State agencies the information | ||||||
19 | contained in the request before issuing a certificate to | ||||||
20 | the applicant; and
| ||||||
21 | (6) any other information the Department determines to | ||||||
22 | be appropriate.
| ||||||
23 | (b) Although an application may be filed at any time after | ||||||
24 | the conclusion of the 12-month period after a new employee was | ||||||
25 | hired, an application filed more than 90 days after the | ||||||
26 | earliest date on which it could have been filed shall not be |
| |||||||
| |||||||
1 | awarded any credit if, prior to the date it is filed, the | ||||||
2 | Department has received applications under this Section for | ||||||
3 | credits totaling more than $20,000,000.
| ||||||
4 | (c) The Department shall issue a certificate to each | ||||||
5 | applicant awarded a credit under this Act. The certificate | ||||||
6 | shall include the following:
| ||||||
7 | (1) the name and taxpayer identification number of the | ||||||
8 | applicant;
| ||||||
9 | (2) the date on which the certificate is issued;
| ||||||
10 | (3) the credit amount that will be allowed; and
| ||||||
11 | (4) any other information the Department determines to | ||||||
12 | be appropriate.
| ||||||
13 | Section 25-130. Submission of tax credit certificate to | ||||||
14 | the Department of Revenue. An applicant claiming a credit | ||||||
15 | under this Act shall submit to the Department of Revenue a copy | ||||||
16 | of each certificate issued under Section 25-125 with the first | ||||||
17 | tax return for which the credit shown on the certificate is | ||||||
18 | claimed. Failure to submit a copy of the certificate with the | ||||||
19 | applicant's tax return shall not invalidate a claim for a | ||||||
20 | credit. | ||||||
21 | Section 25-135. Administrative review. | ||||||
22 | (a) If the Director determines that an applicant who has | ||||||
23 | received a credit under this Act is not complying with the | ||||||
24 | requirements of this Act, the Director shall provide notice to |
| |||||||
| |||||||
1 | the applicant of the alleged noncompliance, and allow the | ||||||
2 | taxpayer a hearing under the provisions of the Illinois | ||||||
3 | Administrative Procedure Act. If, after the notice and | ||||||
4 | hearing, the Director determines that noncompliance exists, | ||||||
5 | the Director shall issue to the Department of Revenue notice | ||||||
6 | to that effect, and state the date of noncompliance. | ||||||
7 | (b) All final administrative decisions, including, but not | ||||||
8 | limited to, funding allocation and rules issued by the | ||||||
9 | Department under this Act are subject to judicial review under | ||||||
10 | the Administrative Review Law. No action may be commenced | ||||||
11 | under this Section prior to 60 days after the complainant has | ||||||
12 | given notice in writing of the action to the Department. | ||||||
13 | Section 25-140. Rules. The Department may adopt rules | ||||||
14 | necessary to implement this Part 1. The rules may provide for | ||||||
15 | recipients of credits under this Part 1 to be charged fees to | ||||||
16 | cover administrative costs of the tax credit program. | ||||||
17 | Part 2. | ||||||
18 | Section 25-200. Definitions.
As used in this Part 2:
| ||||||
19 | "Agreement" means the agreement between a taxpayer and the | ||||||
20 | Department entered into for a tax credit awarded under Section | ||||||
21 | 25-210.
| ||||||
22 | "Applicant" means a taxpayer operating a renewable energy | ||||||
23 | enterprise, as determined under the Energy Community |
| |||||||
| |||||||
1 | Reinvestment Act, located within or that the renewable energy | ||||||
2 | enterprise plans to locate within a Clean Energy Empowerment | ||||||
3 | Zone. "Applicant" does not include a taxpayer who closes or | ||||||
4 | substantially reduces an operation at one location in this | ||||||
5 | State and relocates substantially the same operation to a | ||||||
6 | location in a Clean Energy Empowerment Zone. A taxpayer is not | ||||||
7 | prohibited from expanding its operations at a location in a | ||||||
8 | Clean Energy Empowerment Zone, provided that existing | ||||||
9 | operations of a similar nature located within the State are | ||||||
10 | not closed or substantially reduced. A taxpayer is also not | ||||||
11 | prohibited from moving operations from one location in this | ||||||
12 | State to a Clean Energy Empowerment Zone for the purpose of | ||||||
13 | expanding the operation provided that the Department | ||||||
14 | determines that expansion cannot reasonably be accommodated | ||||||
15 | within the municipality in which the business is located, or | ||||||
16 | in the case of a business located in an incorporated area of | ||||||
17 | the county, within the county in which the business is | ||||||
18 | located, after conferring with the chief elected official of | ||||||
19 | the municipality or county and taking into consideration any | ||||||
20 | evidence offered by the municipality or county regarding the | ||||||
21 | ability to accommodate expansion within the municipality or | ||||||
22 | county.
| ||||||
23 | "Board" means the Clean Energy Empowerment Zone Board | ||||||
24 | created under Section 20-20 of the Illinois Energy Community | ||||||
25 | Reinvestment Act.
| ||||||
26 | "Credit" means the amount agreed to between the Department |
| |||||||
| |||||||
1 | and the Applicant under this Act, but not to exceed the lesser | ||||||
2 | of: (1) the sum of (i) 50% of the incremental income tax | ||||||
3 | attributable to new employees at the applicant's project and | ||||||
4 | (ii) 10% of the training costs of new employees; or (2) 100% of | ||||||
5 | the incremental income tax attributable to new employees at | ||||||
6 | the applicant's project. If the project is located in an | ||||||
7 | underserved area, then the amount of the credit may not exceed | ||||||
8 | the lesser of: (1) the sum of (i) 75% of the incremental income | ||||||
9 | tax attributable to new employees at the applicant's project | ||||||
10 | and (ii) 10% of the training costs of new employees; or (2) | ||||||
11 | 100% of the incremental income tax attributable to new | ||||||
12 | employees at the applicant's project. If an applicant agrees | ||||||
13 | to hire the required number of new employees, then the maximum | ||||||
14 | amount of the credit for that applicant may be increased by an | ||||||
15 | amount not to exceed 25% of the incremental income tax | ||||||
16 | attributable to retained employees at the applicant's project; | ||||||
17 | provided that, in order to receive the increase for retained | ||||||
18 | employees, the applicant must provide the additional evidence | ||||||
19 | required under paragraph (3) of subsection (c) of Section | ||||||
20 | 25-215.
| ||||||
21 | "Department" means the Department of Commerce and Economic | ||||||
22 | Opportunity.
| ||||||
23 | "Director" means the Director of Commerce and Economic | ||||||
24 | Opportunity.
| ||||||
25 | "Full-time employee" means an individual who is employed | ||||||
26 | for consideration for at least 35 hours each week or who |
| |||||||
| |||||||
1 | renders any other standard of service generally accepted by | ||||||
2 | industry custom or practice as full-time employment. An | ||||||
3 | individual for whom a W-2 is issued by a Professional Employer | ||||||
4 | Organization is a full-time employee if employed in the | ||||||
5 | service of the applicant for consideration for at least 35 | ||||||
6 | hours each week or who renders any other standard of service | ||||||
7 | generally accepted by industry custom or practice as full-time | ||||||
8 | employment to the applicant.
| ||||||
9 | "Incremental income tax" means the total amount withheld | ||||||
10 | during the taxable year from the compensation of new employees | ||||||
11 | and, if applicable, retained employees under Article 7 of the | ||||||
12 | Illinois Income Tax Act arising from employment at a project | ||||||
13 | that is the subject of an agreement.
| ||||||
14 | "New employee" means a full-time employee first employed | ||||||
15 | by a taxpayer in the project that is the subject of an | ||||||
16 | agreement and who is hired after the taxpayer enters into the | ||||||
17 | agreement.
| ||||||
18 | "New employee" does not include:
| ||||||
19 | (1) an employee of the taxpayer who performs a job | ||||||
20 | that was previously performed by another employee, if that | ||||||
21 | job existed for at least 6 months before hiring the | ||||||
22 | employee;
| ||||||
23 | (2) an employee of the taxpayer who was previously | ||||||
24 | employed in Illinois by a related member of the taxpayer | ||||||
25 | and whose employment was shifted to the taxpayer after the | ||||||
26 | taxpayer entered into the agreement; or
|
| |||||||
| |||||||
1 | (3) a child, grandchild, parent, or spouse, other than | ||||||
2 | a spouse who is legally separated from the individual, of | ||||||
3 | any individual who has a direct or an indirect ownership | ||||||
4 | interest of at least 5% in the profits, capital, or value | ||||||
5 | of the taxpayer.
| ||||||
6 | Notwithstanding any other provisions of this Section, an | ||||||
7 | employee may be considered a new employee under the agreement | ||||||
8 | if the employee performs a job that was previously performed | ||||||
9 | by an employee who was: (i) treated under the agreement as a | ||||||
10 | new employee; and (ii) promoted by the taxpayer to another | ||||||
11 | job.
| ||||||
12 | Notwithstanding any other provisions of this Section, the | ||||||
13 | Department may award a credit to an applicant with respect to | ||||||
14 | an employee hired prior to the date of the agreement if: (i) | ||||||
15 | the applicant is in receipt of a letter from the Department | ||||||
16 | stating an intent to enter into a credit agreement; (ii) the | ||||||
17 | letter described in item (i) of this paragraph is issued by the | ||||||
18 | Department not later than 15 days after the effective date of | ||||||
19 | this Act; and (iii) the employee was hired after the date the | ||||||
20 | letter described in item (i) of this paragraph was issued.
| ||||||
21 | "Pass-through entity" means an entity that is exempt from | ||||||
22 | the tax under subsection (b) or (c) of Section 205 of the | ||||||
23 | Illinois Income Tax Act.
| ||||||
24 | "Related member" means a person that, with respect to the | ||||||
25 | taxpayer during any portion of the taxable year, is any one of | ||||||
26 | the following:
|
| |||||||
| |||||||
1 | (1) An individual stockholder, if the stockholder and | ||||||
2 | the members of the stockholder's family, as defined in | ||||||
3 | Section 318 of the Internal Revenue Code, own directly, | ||||||
4 | indirectly, beneficially, or constructively, in the | ||||||
5 | aggregate, at least 50% of the value of the taxpayer's | ||||||
6 | outstanding stock.
| ||||||
7 | (2) A partnership, estate, or trust and any partner or | ||||||
8 | beneficiary, if the partnership, estate, or trust, and its | ||||||
9 | partners or beneficiaries own directly, indirectly, | ||||||
10 | beneficially, or constructively, in the aggregate, at | ||||||
11 | least 50% of the profits, capital, stock, or value of the | ||||||
12 | taxpayer.
| ||||||
13 | (3) A corporation, and any party related to the | ||||||
14 | corporation in a manner that would require an attribution | ||||||
15 | of stock from the corporation to the party or from the | ||||||
16 | party to the corporation under the attribution rules of | ||||||
17 | Section 318 of the Internal Revenue Code, if the taxpayer | ||||||
18 | owns directly, indirectly, beneficially, or constructively | ||||||
19 | at least 50% of the value of the corporation's outstanding | ||||||
20 | stock.
| ||||||
21 | (4) A corporation and any party related to that | ||||||
22 | corporation in a manner that would require an attribution | ||||||
23 | of stock from the corporation to the party or from the | ||||||
24 | party to the corporation under the attribution rules of | ||||||
25 | Section 318 of the Internal Revenue Code, if the | ||||||
26 | corporation and all such related parties own in the |
| |||||||
| |||||||
1 | aggregate at least 50% of the profits, capital, stock, or | ||||||
2 | value of the taxpayer.
| ||||||
3 | (5) A person to or from whom there is attribution of | ||||||
4 | stock ownership in accordance with subsection (e) of | ||||||
5 | Section 1563 of the Internal Revenue Code, except that for | ||||||
6 | purposes of determining whether a person is a related | ||||||
7 | member under this paragraph (5):
| ||||||
8 | (A) stock owned, directly or indirectly, by or for | ||||||
9 | a partnership shall be considered as owned by any | ||||||
10 | partner having an interest of 20% or more in either the | ||||||
11 | capital or profits of the partnership in proportion to | ||||||
12 | his or her interest in capital or profits, whichever | ||||||
13 | such proportion is the greater;
| ||||||
14 | (B) stock owned, directly or indirectly, by or for | ||||||
15 | an estate or trust shall be considered as owned by any | ||||||
16 | beneficiary who has an actuarial interest of 20% or | ||||||
17 | more in such stock, to the extent of such actuarial | ||||||
18 | interest. For purposes of this subparagraph, the | ||||||
19 | actuarial interest of each beneficiary shall be | ||||||
20 | determined by assuming the maximum exercise of | ||||||
21 | discretion by the fiduciary in favor of such | ||||||
22 | beneficiary and the maximum use of such stock to | ||||||
23 | satisfy his or her rights as a beneficiary; and
| ||||||
24 | (C) stock owned, directly or indirectly, by or for | ||||||
25 | a corporation shall be considered as owned by any | ||||||
26 | person who owns 20% or more in value of its stock in |
| |||||||
| |||||||
1 | that proportion which the value of the stock which the | ||||||
2 | person so owns bears to the value of all the stock in | ||||||
3 | the corporation.
| ||||||
4 | "Renewable energy" means solar energy, wind energy, water | ||||||
5 | energy, geothermal energy, bioenergy, or hydrogen fuel and | ||||||
6 | cells.
| ||||||
7 | "Renewable energy production facility" means a facility | ||||||
8 | owned by a company that is engaged in and used such a facility | ||||||
9 | for the production of solar energy, wind energy, water energy, | ||||||
10 | geothermal energy, bioenergy, or hydrogen fuel and cells.
| ||||||
11 | "Taxpayer" means an individual, corporation, partnership, | ||||||
12 | or other entity that has any Illinois income tax liability.
| ||||||
13 | "Underserved area" means a geographic area that meets one | ||||||
14 | or more of the following conditions:
| ||||||
15 | (1) the area has a poverty rate of at least 20% | ||||||
16 | according to the latest federal decennial census;
| ||||||
17 | (2) 75% or more of the children in the area | ||||||
18 | participate in the federal free lunch program according to | ||||||
19 | reported statistics from the State Board of Education;
| ||||||
20 | (3) at least 20% of the households in the area receive | ||||||
21 | assistance under the Supplemental Nutrition Assistance | ||||||
22 | Program; or
| ||||||
23 | (4) the area has an average unemployment rate, as | ||||||
24 | determined by the Department of Employment Security, that | ||||||
25 | is more than 120% of the national unemployment average, as | ||||||
26 | determined by the United States Department of Labor, for a |
| |||||||
| |||||||
1 | period of at least 2 consecutive calendar years preceding | ||||||
2 | the date of the application. | ||||||
3 | Section 25-205. Powers of the Department. The Department, | ||||||
4 | in addition to those powers granted under the Civil | ||||||
5 | Administrative Code of Illinois and Part 1 of this Act, is | ||||||
6 | granted and has all the powers necessary or convenient to | ||||||
7 | carry out and effectuate the purposes and provisions of this | ||||||
8 | Act, including, but not limited to, power and authority to:
| ||||||
9 | (a) Adopt rules deemed necessary and appropriate for the | ||||||
10 | administration of programs; establish forms for applications, | ||||||
11 | notifications, contracts, or any other agreements; and accept | ||||||
12 | applications at any time during the year.
| ||||||
13 | (b) Provide and assist taxpayers pursuant to the | ||||||
14 | provisions of this Act, and cooperate with taxpayers that are | ||||||
15 | parties to agreements to promote, foster, and support economic | ||||||
16 | development, capital investment, and job creation or retention | ||||||
17 | within the Clean Energy Empowerment Zone.
| ||||||
18 | (c) Enter into agreements and memoranda of understanding | ||||||
19 | for participation of and engage in cooperation with agencies | ||||||
20 | of the federal government, units of local government, | ||||||
21 | universities, research foundations or institutions, regional | ||||||
22 | economic development corporations, or other organizations for | ||||||
23 | the purposes of this Act.
| ||||||
24 | (d) Gather information and conduct inquiries, in the | ||||||
25 | manner and by the methods as it deems desirable, including, |
| |||||||
| |||||||
1 | without limitation, gathering information with respect to | ||||||
2 | applicants for the purpose of making any designations or | ||||||
3 | certifications necessary or desirable or to gather information | ||||||
4 | to assist the Board with any recommendation or guidance in the | ||||||
5 | furtherance of the purposes of this Act.
| ||||||
6 | (e) Establish, negotiate and effectuate any term, | ||||||
7 | agreement or other document with any person, necessary or | ||||||
8 | appropriate to accomplish the purposes of this Act, and | ||||||
9 | consent, subject to the provisions of any agreement with | ||||||
10 | another party, to the modification or restructuring of any | ||||||
11 | agreement to which the Department is a party.
| ||||||
12 | (f) Fix, determine, charge, and collect any premiums, | ||||||
13 | fees, charges, costs, and expenses from applicants, including, | ||||||
14 | without limitation, any application fees, commitment fees, | ||||||
15 | program fees, financing charges, or publication fees as deemed | ||||||
16 | appropriate to pay expenses necessary or incident to the | ||||||
17 | administration, staffing, or operation in connection with the | ||||||
18 | Department's or Board's activities under this Act, or for | ||||||
19 | preparation, implementation, and enforcement of the terms of | ||||||
20 | the agreement, or for consultation, advisory and legal fees, | ||||||
21 | and other costs. All fees and expenses incident thereto shall | ||||||
22 | be the responsibility of the applicant.
| ||||||
23 | (g) Provide for sufficient personnel to permit | ||||||
24 | administration, staffing, operation, and related support | ||||||
25 | required to adequately discharge its duties and | ||||||
26 | responsibilities described in this Act from funds made |
| |||||||
| |||||||
1 | available through charges to applicants or from funds as may | ||||||
2 | be appropriated by the General Assembly for the administration | ||||||
3 | of this Act.
| ||||||
4 | (h) Require applicants, upon written request, to issue any | ||||||
5 | necessary authorization to the appropriate federal, State, or | ||||||
6 | local authority for the release of information concerning a | ||||||
7 | project being considered under the provisions of this Act, | ||||||
8 | with the information requested to include, but not be limited | ||||||
9 | to, financial reports, returns, or records relating to the | ||||||
10 | taxpayer or its project.
| ||||||
11 | (i) Require that a taxpayer shall at all times keep proper | ||||||
12 | books of record and account in accordance with generally | ||||||
13 | accepted accounting principles consistently applied, with the | ||||||
14 | books, records, or papers related to the agreement in the | ||||||
15 | custody or control of the taxpayer open for reasonable | ||||||
16 | Department inspection and audits, and including, without | ||||||
17 | limitation, the making of copies of the books, records, or | ||||||
18 | papers, and the inspection or appraisal of any of the taxpayer | ||||||
19 | or project assets.
| ||||||
20 | (j) Take whatever actions are necessary or appropriate to | ||||||
21 | protect the State's interest in the event of bankruptcy, | ||||||
22 | default, foreclosure, or noncompliance with the terms and | ||||||
23 | conditions of financial assistance or participation required | ||||||
24 | under this Act, including the power to sell, dispose, lease, | ||||||
25 | or rent, upon terms and conditions determined by the Director | ||||||
26 | to be appropriate, real or personal property that the |
| |||||||
| |||||||
1 | Department may receive as a result of these actions. | ||||||
2 | Section 25-210. Tax credit awards.
| ||||||
3 | (a) Subject to the conditions set forth in this Act, a | ||||||
4 | taxpayer is entitled to a credit against or, as described in | ||||||
5 | subsection (g), a payment toward taxes imposed pursuant to | ||||||
6 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
7 | Tax Act that may be imposed on the taxpayer for a taxable year | ||||||
8 | beginning on or after January 1, 2019, if the taxpayer is | ||||||
9 | awarded a credit by the Department under this Act for that | ||||||
10 | taxable year.
| ||||||
11 | (b) The Department shall make credit awards under this Act | ||||||
12 | to foster job creation and the development of renewable energy | ||||||
13 | in Clean Energy Empowerment Zones.
| ||||||
14 | (c) A person that proposes a project to create new jobs and | ||||||
15 | to invest in the development of a renewable energy production | ||||||
16 | facility in a Clean Energy Empowerment Zone must enter into an | ||||||
17 | agreement with the Department for the credit under this Act. | ||||||
18 | (d) The credit shall be claimed for the taxable years | ||||||
19 | specified in the agreement.
| ||||||
20 | (e) The credit shall not exceed the incremental income tax | ||||||
21 | attributable to the project that is the subject of the | ||||||
22 | agreement.
| ||||||
23 | (f) Nothing herein shall prohibit a tax credit award to an | ||||||
24 | applicant that uses a Professional Employer Organization if | ||||||
25 | all other award criteria are satisfied.
|
| |||||||
| |||||||
1 | (g) A pass-through entity that has been awarded a credit | ||||||
2 | under this Act, its shareholders, or its partners may treat | ||||||
3 | some or all of the credit awarded under this Act as a tax | ||||||
4 | payment for purposes of the Illinois Income Tax Act. In no | ||||||
5 | event shall the amount of the award credited under this Act | ||||||
6 | exceed the Illinois income tax liability of the pass-through | ||||||
7 | entity or its shareholders or partners for the taxable year.
| ||||||
8 | For the purposes of this subsection (g), "tax payment" | ||||||
9 | means a payment as described in Article 6 or Article 8 of the | ||||||
10 | Illinois Income Tax Act or a composite payment made by a | ||||||
11 | pass-through entity on behalf of any of its shareholders or | ||||||
12 | partners to satisfy such shareholders' or partners' taxes | ||||||
13 | imposed pursuant to subsections (a) and (b) of Section 201 of | ||||||
14 | the Illinois Income Tax Act.
| ||||||
15 | Section 25-215. Application for a project to create and | ||||||
16 | retain new jobs and to develop renewable energy.
| ||||||
17 | (a) Any renewable energy enterprise proposing a project to | ||||||
18 | build a renewable energy production facility located or | ||||||
19 | planned to be located in a Clean Energy Empowerment Zone may | ||||||
20 | request consideration for designation of its project, by | ||||||
21 | formal written letter of request or by formal application to | ||||||
22 | the Department, in which the applicant states its intent to | ||||||
23 | make at least a specified level of investment and intends to | ||||||
24 | hire or retain a specified number of full-time employees at a | ||||||
25 | designated location in Illinois. As circumstances require, the |
| |||||||
| |||||||
1 | Department may require a formal application from an applicant | ||||||
2 | and a formal letter of request for assistance.
| ||||||
3 | (b) In order to qualify for credits under this Act, an | ||||||
4 | applicant's project must:
| ||||||
5 | (1) be for the purpose of producing renewable energy;
| ||||||
6 | (2) if the applicant has more than 100 employees, | ||||||
7 | involve an investment of at least $2,500,000 in capital | ||||||
8 | improvements to be placed in service within a Clean Energy | ||||||
9 | Empowerment Zone as a direct result of the project. If the | ||||||
10 | applicant has 100 or fewer employees, then there is no | ||||||
11 | capital investment requirement; and
| ||||||
12 | (3) if the applicant has more than 100 employees, | ||||||
13 | employ a number of new employees in the Clean Energy | ||||||
14 | Empowerment Zone equal to the lesser of (A) 10% of the | ||||||
15 | number of full-time employees employed by the applicant | ||||||
16 | world-wide on the date the application is filed with the | ||||||
17 | Department; or (B) 50 new employees. If the applicant has | ||||||
18 | 100 or fewer employees, employ a number of new employees | ||||||
19 | in the State equal to the lesser of (A) 5% of the number of | ||||||
20 | full-time employees employed by the applicant world-wide | ||||||
21 | on the date the application is filed with the Department | ||||||
22 | or (B) 50 New Employees. | ||||||
23 | (c) After receipt of an application, the Department shall | ||||||
24 | review the application, make inquiries, and conduct studies in | ||||||
25 | the manner and by the methods as it deems desirable, and | ||||||
26 | consult with and make a recommendation to the Clean Energy |
| |||||||
| |||||||
1 | Empowerment Zone Board created under the Energy Community | ||||||
2 | Reinvestment Act. The Department and the Board shall make its | ||||||
3 | recommendations and approvals based on whether they determine | ||||||
4 | that all of the following conditions exist: | ||||||
5 | (1) The applicant's project will make the required | ||||||
6 | investment in the State and the applicant intends to hire | ||||||
7 | the required number of new employees in Illinois as a | ||||||
8 | result of that project, as described in this Act. | ||||||
9 | (2) The applicant's project is economically sound and | ||||||
10 | will benefit the people of the State of Illinois by | ||||||
11 | increasing opportunities for employment and strengthening | ||||||
12 | the economy of Illinois. | ||||||
13 | (3) That, if not for the credit, the project would not | ||||||
14 | occur in Illinois or in the Clean Energy Empowerment Zone, | ||||||
15 | which may be demonstrated by evidence that receipt of the | ||||||
16 | credit is essential to the applicant's decision to create | ||||||
17 | new jobs in the State, such as the magnitude of the cost | ||||||
18 | differential between Illinois and a competing state;
| ||||||
19 | (4) The political subdivisions affected by the project | ||||||
20 | have committed local incentives or other support with | ||||||
21 | respect to the project, considering local ability to | ||||||
22 | assist.
| ||||||
23 | (5) Awarding the credit will result in an overall | ||||||
24 | positive fiscal impact to the State, as certified by the | ||||||
25 | Board using the best available data.
| ||||||
26 | (6) The credit is not prohibited by Section 25-225.
|
| |||||||
| |||||||
1 | (d) After approval by the Board, the Department may enter | ||||||
2 | into an agreement with the applicant.
| ||||||
3 | Section 25-225. Relocation of jobs to Clean Energy | ||||||
4 | Empowerment Zone. A taxpayer is not entitled to claim the | ||||||
5 | credit provided by this Act with respect to any jobs that the | ||||||
6 | taxpayer relocates from one site in Illinois to another site | ||||||
7 | in a Clean Energy Empowerment Zone. A taxpayer with respect to | ||||||
8 | a qualifying project certified under the Corporate | ||||||
9 | Headquarters Relocation Act, however, is not subject to the | ||||||
10 | requirements of this Section, but is nevertheless considered | ||||||
11 | an applicant for purposes of this Act. Moreover, any full-time | ||||||
12 | employee of an eligible renewable energy enterprise relocated | ||||||
13 | to a Clean Energy Empowerment Zone in connection with that | ||||||
14 | qualifying project is deemed to be a new employee for purposes | ||||||
15 | of this Act. Determinations under this Section shall be made | ||||||
16 | by the Department. | ||||||
17 | Section 25-230. Determination of the amount of credit. In | ||||||
18 | determining the amount of credit that should be awarded, the | ||||||
19 | Board shall provide guidance on, and the Department shall take | ||||||
20 | into consideration, all of the following factors:
| ||||||
21 | (1) the number and location of jobs created and | ||||||
22 | retained in relation to the economy of the Clean Energy | ||||||
23 | Empowerment Zone where the projected investment is to | ||||||
24 | occur;
|
| |||||||
| |||||||
1 | (2) the potential impact on the economy of the Clean | ||||||
2 | Energy Empowerment Zone;
| ||||||
3 | (3) the advancement of renewable energy in the Clean | ||||||
4 | Energy Empowerment Zone;
| ||||||
5 | (4) the incremental payroll attributable to the | ||||||
6 | project;
| ||||||
7 | (5) the capital investment attributable to the | ||||||
8 | project;
| ||||||
9 | (6) the amount of the average wage and benefits paid | ||||||
10 | by the applicant in relation to the wage and benefits of | ||||||
11 | the Clean Energy Empowerment Zone;
| ||||||
12 | (7) the costs to Illinois and the affected political | ||||||
13 | subdivisions with respect to the project; and
| ||||||
14 | (8) the financial assistance that is otherwise | ||||||
15 | provided by Illinois and the affected political | ||||||
16 | subdivisions.
| ||||||
17 | Section 25-235. Amount and duration of credit.
| ||||||
18 | (a) The Department shall determine the amount and duration | ||||||
19 | of the credit awarded under this Act. The duration of the | ||||||
20 | credit may not exceed 10 taxable years. The credit may be | ||||||
21 | stated as a percentage of the incremental income tax | ||||||
22 | attributable to the applicant's project and may include a | ||||||
23 | fixed dollar limitation. An agreement for the credit must be | ||||||
24 | finalized and signed by all parties while the area in which the | ||||||
25 | project is located is designated a Clean Energy Empowerment |
| |||||||
| |||||||
1 | Zone. The credit may last longer than the applicable Clean | ||||||
2 | Energy Empowerment Zone designation. Agreements entered into | ||||||
3 | prior to the de-designation of a Clean Energy Empowerment Zone | ||||||
4 | shall be honored for the length of the agreement.
| ||||||
5 | (b) Notwithstanding subsection (a), and except as the | ||||||
6 | credit may be applied in a carryover year as otherwise | ||||||
7 | provided in this subsection (b), the credit may be applied | ||||||
8 | against the State income tax liability in more than 10 taxable | ||||||
9 | years, but not in more than 15 taxable years for an eligible | ||||||
10 | green energy enterprise that: (i) qualifies under this Act and | ||||||
11 | the Corporate Headquarters Relocation Act and has in fact | ||||||
12 | undertaken a qualifying project within the time frame | ||||||
13 | specified by the Department of Commerce and Economic | ||||||
14 | Opportunity under that Act; and (ii) applies against its State | ||||||
15 | income tax liability, during the entire 15-year period, no | ||||||
16 | more than 60% of the maximum credit per year that would | ||||||
17 | otherwise be available under this Act.
| ||||||
18 | Any credit that is unused in the year the credit is | ||||||
19 | computed may be carried forward and applied to the tax | ||||||
20 | liability of the 5 taxable years following the excess credit | ||||||
21 | year. The credit shall be applied to the earliest year for | ||||||
22 | which there is a tax liability. If there are credits from more | ||||||
23 | than one tax year that are available to offset a liability, the | ||||||
24 | earlier credit shall be applied first.
| ||||||
25 | Section 25-240. Contents of agreements with applicants. |
| |||||||
| |||||||
1 | The Department shall enter into an agreement with an applicant | ||||||
2 | that is awarded a credit under this Act. | ||||||
3 | Section 25-245. Certificate of verification; submission to | ||||||
4 | the Department of Revenue. A taxpayer claiming a credit under | ||||||
5 | this Act shall submit to the Department of Revenue a copy of | ||||||
6 | the Director's certificate of verification under this Act for | ||||||
7 | the taxable year. Failure to submit a copy of the certificate | ||||||
8 | with the taxpayer's tax return shall not invalidate a claim | ||||||
9 | for a credit. | ||||||
10 | Section 25-250. Supplier diversity. Each taxpayer claiming | ||||||
11 | a credit under this Act shall, no later than April 15 of each | ||||||
12 | taxable year for which the taxpayer claims a credit under this | ||||||
13 | Act, submit to the Department of Commerce and Economic | ||||||
14 | Opportunity an annual report containing the information | ||||||
15 | described in subsections (b), (c), (d), and (e) of Section | ||||||
16 | 5-117 of the Public Utilities Act. Those reports shall be | ||||||
17 | submitted in the form and manner required by the Department of | ||||||
18 | Commerce and Economic Opportunity. | ||||||
19 | Section 25-255. Pass-through entity. The shareholders or | ||||||
20 | partners of a taxpayer that is a pass-through entity shall be | ||||||
21 | entitled to the credit allowed under the agreement. The credit | ||||||
22 | is in addition to any credit to which a shareholder or partner | ||||||
23 | is otherwise entitled under a separate agreement under this |
| |||||||
| |||||||
1 | Act. A pass-through entity and a shareholder or partner of the | ||||||
2 | pass-through entity may not claim more than one credit under | ||||||
3 | the same agreement. | ||||||
4 | Section 25-260. Rules. The Department may adopt rules | ||||||
5 | necessary to implement this Part 2. The rules may provide for | ||||||
6 | recipients of credits under this Part 2 to be charged fees to | ||||||
7 | cover administrative costs of the tax credit program. Fees | ||||||
8 | collected shall be deposited into the Energy Community | ||||||
9 | Reinvestment Fund. | ||||||
10 | Section 25-265. Program terms and conditions.
| ||||||
11 | (a) Any documentary materials or data made available or | ||||||
12 | received by any member of a board or any agent or employee of | ||||||
13 | the Department shall be deemed confidential and shall not be | ||||||
14 | deemed public records to the extent that the materials or data | ||||||
15 | consists of trade secrets, commercial or financial information | ||||||
16 | regarding the operation of the business conducted by the | ||||||
17 | applicant for or recipient of any tax credit under this Act, or | ||||||
18 | any information regarding the competitive position of a | ||||||
19 | business in a particular field of endeavor.
| ||||||
20 | (b) Nothing in this Act shall be construed as creating any | ||||||
21 | rights in any applicant to enter into an agreement or in any | ||||||
22 | person to challenge the terms of any agreement.
| ||||||
23 | Article 30. Coal Severance Fee Act |
| |||||||
| |||||||
1 | Section 30-1. Short title. This Article may be cited as | ||||||
2 | the Coal Severance Fee Act. References in this Article to | ||||||
3 | "this Act" mean
this Article. | ||||||
4 | Section 30-5. Coal severance fee. | ||||||
5 | (a) Definitions. As used in this Act: | ||||||
6 | "Department" means the Department of Revenue. | ||||||
7 | "Person" means any natural individual, firm, partnership, | ||||||
8 | association, joint stock company, joint adventure, public or | ||||||
9 | private corporation, limited liability company, or a receiver, | ||||||
10 | executor, trustee, guardian, or other representative appointed | ||||||
11 | by order of any court. | ||||||
12 | (b) Tax imposed. | ||||||
13 | (1) On and after June 1, 2021, there is hereby imposed | ||||||
14 | a tax upon any person engaged in the business of severing | ||||||
15 | or preparing coal for sale, profit, or commercial use, if | ||||||
16 | the coal is severed from a mine located in this State. The | ||||||
17 | rate of the tax imposed under this Section is 6% of the | ||||||
18 | gross value of the severed coal. | ||||||
19 | (2) The liability for the tax accrues at the time the | ||||||
20 | coal is severed. | ||||||
21 | (c) Payment and collection of tax. | ||||||
22 | (1) The tax imposed under this Act shall be due and | ||||||
23 | payable on or before the 20th day of the month following | ||||||
24 | the month in which the coal is severed. |
| |||||||
| |||||||
1 | (2) The State shall have a lien on all coal severed in | ||||||
2 | this State on or after June 1, 2021 to secure the payment | ||||||
3 | of the tax. | ||||||
4 | (d) Registration. A person who is subject to the tax | ||||||
5 | imposed under this Act shall register with the Department. | ||||||
6 | Application for a certificate of registration shall be made to | ||||||
7 | the Department upon forms furnished by the Department and | ||||||
8 | shall contain any reasonable information the Department may | ||||||
9 | require. Upon receipt of the application for a certificate of | ||||||
10 | registration in proper form, the Department shall issue to the | ||||||
11 | applicant a certificate of registration. | ||||||
12 | (e) Inspection of records by Department, subpoena power, | ||||||
13 | contempt. For the purpose of computing the amount of the tax | ||||||
14 | due under this Section, the Department has the following | ||||||
15 | powers: | ||||||
16 | (1) to require any person who is subject to this tax to | ||||||
17 | furnish any additional information deemed to be necessary | ||||||
18 | for the computation of the tax; | ||||||
19 | (2) to examine books, records, and files of such | ||||||
20 | person; and | ||||||
21 | (3) to issue subpoenas and examine witnesses under | ||||||
22 | oath. If any witness fails or refuses to appear at the | ||||||
23 | request of the Director, or if any witness refuses access | ||||||
24 | to books, records, or files, the circuit court of the | ||||||
25 | proper county, or the judge thereof, on application of the | ||||||
26 | Department, shall compel obedience by proceedings for |
| |||||||
| |||||||
1 | contempt, as in the case of disobedience of the | ||||||
2 | requirements of a subpoena issued from that court or a | ||||||
3 | refusal to testify therein. | ||||||
4 | (f) Returns. Each taxpayer shall make a return to the | ||||||
5 | Department showing the following: | ||||||
6 | (1) the name of the taxpayer; | ||||||
7 | (2) the address of the taxpayer's principal place of | ||||||
8 | business; | ||||||
9 | (3) the quantity of coal severed or prepared during | ||||||
10 | the month for which the return is filed; | ||||||
11 | (4) the gross value of the severed coal; | ||||||
12 | (5) the amount of tax due; | ||||||
13 | (6) the signature of the taxpayer; and | ||||||
14 | (7) any other reasonable information as the Department | ||||||
15 | may require. | ||||||
16 | (g) The return shall be filed on or before the 20th day of | ||||||
17 | the month after the month during which the coal is severed. The | ||||||
18 | Department may require any additional report or information it | ||||||
19 | deems necessary for the proper administration of this Act. | ||||||
20 | (h) Returns due under this Section shall be filed | ||||||
21 | electronically in the manner prescribed by the Department. | ||||||
22 | Taxpayers shall make all payments of the tax to the Department | ||||||
23 | under this Act by electronic funds transfer unless, as | ||||||
24 | provided by rule, the Department grants an exception upon | ||||||
25 | petition of a taxpayer. Returns must be accompanied by | ||||||
26 | appropriate computer generated magnetic media supporting |
| |||||||
| |||||||
1 | schedule data in the format required by the Department, | ||||||
2 | unless, as provided by rule, the Department grants an | ||||||
3 | exception upon petition of a taxpayer. | ||||||
4 | (i) Incorporation by reference. All of the provisions of | ||||||
5 | Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, 13 6a, 6b, | ||||||
6 | 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' | ||||||
7 | Occupation Tax Act which are not inconsistent with this Act, | ||||||
8 | and all provisions of the Uniform Penalty and Interest Act | ||||||
9 | shall apply, as far as practicable, to the subject matter of | ||||||
10 | this Act to the same extent as if such provisions were included | ||||||
11 | herein. | ||||||
12 | (j) Rulemaking. The Department is hereby authorized to | ||||||
13 | adopt rules as may be necessary to administer and enforce the | ||||||
14 | provisions of this Act. | ||||||
15 | (k) Distribution of proceeds. All moneys received by the | ||||||
16 | Department under this Act shall be paid into the Energy | ||||||
17 | Community Reinvestment Fund. | ||||||
18 | Article 35. Building Energy Performance Standard Act | ||||||
19 | Section 35-1. Short title. This Article may be cited as | ||||||
20 | the Building Energy Performance Standard Act. References in | ||||||
21 | this Article to "this Act" mean
this Article. | ||||||
22 | Section 35-5. Building Energy Performance Standard. | ||||||
23 | (a) The purpose of the Illinois Building Energy |
| |||||||
| |||||||
1 | Performance Standard is to decrease energy consumption, reduce | ||||||
2 | greenhouse gas emissions from existing buildings, and increase | ||||||
3 | economic growth and job creation by: | ||||||
4 | (1) creating a Building Energy Performance Standard | ||||||
5 | through a stakeholder engagement process; | ||||||
6 | (2) implementing the Building Energy Performance | ||||||
7 | Standard for all state-owned buildings; and | ||||||
8 | (3) creating a uniform Building Energy Performance | ||||||
9 | Standard that may be adopted by local jurisdictions and | ||||||
10 | may be applicable to publicly owned buildings or privately | ||||||
11 | owned buildings, or both. | ||||||
12 | (b) Within 90 days after the effective date of this Act, | ||||||
13 | the Illinois Office of Energy shall establish a Building | ||||||
14 | Energy Performance Standard Task Force to advise and provide | ||||||
15 | technical assistance and recommendations for the Illinois | ||||||
16 | Building Energy Performance Standard, which shall: | ||||||
17 | (A) advise the Illinois Office of Energy on creation | ||||||
18 | of an implementation plan for the Building Energy | ||||||
19 | Performance Standard; | ||||||
20 | (B) recommend amendments to proposed regulations | ||||||
21 | issued by the Illinois Office of Energy; | ||||||
22 | (C) recommend complementary programs or policies; and | ||||||
23 | (D) complete its tasks within one year of enactment. | ||||||
24 | The Task Force shall be composed of representatives, | ||||||
25 | or their designees, from the following entities: | ||||||
26 | (i) the Director of the Illinois Environmental |
| |||||||
| |||||||
1 | Protection Agency; | ||||||
2 | (ii) the Director of the Capital Development Board; | ||||||
3 | (iii) The Director of Central Management Services; | ||||||
4 | (iv) a minimum of one technical expert with extensive | ||||||
5 | knowledge of energy use in multiple existing commercial | ||||||
6 | building use types; | ||||||
7 | (v) a representative from the City of Chicago; | ||||||
8 | (vi) the Director of the Illinois Housing Development | ||||||
9 | Authority; | ||||||
10 | (vii) the Director of Commerce and Economic | ||||||
11 | Opportunity; | ||||||
12 | (viii) a representative from an environmental or | ||||||
13 | sustainability nonprofit organization; | ||||||
14 | (ix) a representative from each of the investor-owned | ||||||
15 | utilities in Illinois; | ||||||
16 | (x) a representative who is an affordable housing | ||||||
17 | advocate; | ||||||
18 | (xi) a representative from a market-rate multifamily | ||||||
19 | building; | ||||||
20 | (xii) a representative from a building owners and | ||||||
21 | managers association; | ||||||
22 | (xiii) a representative from a public university | ||||||
23 | system; | ||||||
24 | (xiv) a representative of a nonprofit or professional | ||||||
25 | association advocating for energy efficient buildings or a | ||||||
26 | low-carbon built environment; |
| |||||||
| |||||||
1 | (xvi) a representative of a business or entity that | ||||||
2 | provides energy efficiency or renewable energy services to | ||||||
3 | large buildings or affordable housing in the State; and | ||||||
4 | (xvii) other experts or organizations deemed necessary | ||||||
5 | by the Illinois Office of Energy. | ||||||
6 | (c) In establishing specific performance standards and | ||||||
7 | processes, the Illinois Office of Energy shall: | ||||||
8 | (1) require all buildings owned by the State of | ||||||
9 | Illinois to comply with the Building Energy Performance | ||||||
10 | Standard. State-owned buildings shall meet the following | ||||||
11 | timeline for compliance with Building Energy Performance | ||||||
12 | Standard: | ||||||
13 | (A) buildings over 50,000 gross square feet shall | ||||||
14 | comply no later than January 1, 2024; | ||||||
15 | (B) buildings over 25,000 gross square feet shall | ||||||
16 | comply no later than January 1, 2026; | ||||||
17 | (C) buildings over 10,000 gross square feet shall | ||||||
18 | comply no later than January 1, 2028; and | ||||||
19 | (D) buildings below 10,000 gross square feet are | ||||||
20 | not required to comply. | ||||||
21 | (2) require the property type energy use targets | ||||||
22 | established by the Illinois Building Energy Performance | ||||||
23 | Standard to be the minimum energy efficiency requirements | ||||||
24 | for any jurisdiction adopting a building energy | ||||||
25 | performance standard; | ||||||
26 | (3) with input from the Building Energy Performance |
| |||||||
| |||||||
1 | Standard Task Force, establish property types and building | ||||||
2 | energy performance standards for each property type, or an | ||||||
3 | equivalent metric for buildings that do not receive an | ||||||
4 | ENERGY STAR score, no later than January 1, 2023; | ||||||
5 | beginning every 5 years after January 1, 2023, the | ||||||
6 | Illinois Office of Energy shall review and assess the need | ||||||
7 | to update the energy performance standards for each | ||||||
8 | property type; | ||||||
9 | (4) establish reporting and data verification | ||||||
10 | requirements for buildings covered by Building Energy | ||||||
11 | Performance Standard, and establish requirements for | ||||||
12 | making reporting and data publicly available; | ||||||
13 | (5) establish that the Building Energy Performance | ||||||
14 | Standard for buildings that are eligible for an ENERGY | ||||||
15 | STAR score is no lower than the State median ENERGY STAR | ||||||
16 | score for buildings of each property type; | ||||||
17 | (6) establish penalty guidelines for buildings failing | ||||||
18 | to comply with the building energy performance | ||||||
19 | requirements; and | ||||||
20 | (7) if needed, establish exemption criteria, in | ||||||
21 | consultation with the Building Energy Performance Standard | ||||||
22 | Task Force, including: | ||||||
23 | (A) for qualifying affordable housing buildings to | ||||||
24 | delay compliance with the building energy performance | ||||||
25 | requirements for no more than 3 years if the owner | ||||||
26 | demonstrates, to the satisfaction of the Illinois |
| |||||||
| |||||||
1 | Office of Energy, financial distress, change of | ||||||
2 | ownership, vacancy, major renovation, pending | ||||||
3 | demolition, or other acceptable circumstances as | ||||||
4 | determined by the State of Illinois; and | ||||||
5 | (B) for qualifying buildings to delay compliance | ||||||
6 | with the building energy performance requirements for | ||||||
7 | up to 3 years if the owner demonstrates, to the | ||||||
8 | satisfaction of the State of Illinois, financial | ||||||
9 | distress, change of ownership, vacancy, major | ||||||
10 | renovation, pending demolition, or other acceptable | ||||||
11 | circumstances determined by the State of Illinois. | ||||||
12 | (d) In establishing specific performance standards, the | ||||||
13 | Illinois Office of Energy may consider: | ||||||
14 | (1) the existence of any historic buildings and any | ||||||
15 | restrictions related to the treatment of historic | ||||||
16 | buildings; | ||||||
17 | (2) the diversity of building uses and requirements; | ||||||
18 | and | ||||||
19 | (3) the impact on zoning regulations. | ||||||
20 | (e) The Illinois Office of Energy shall, no later than | ||||||
21 | January 1, 2023, create, and make publicly available, a | ||||||
22 | strategic implementation plan for State-owned buildings | ||||||
23 | complying with the Illinois Building Energy Performance | ||||||
24 | Standard. | ||||||
25 | (f) The Illinois Office of Energy shall post the strategic | ||||||
26 | implementation plan on its website. |
| |||||||
| |||||||
1 | Article 40. Public Utilities Intervenor Compensation Act | ||||||
2 | Section 40-1. Short title. This Article may be cited as | ||||||
3 | the Public Utilities Intervenor Compensation Act. References | ||||||
4 | in this Article to "this Act" mean
this Article. | ||||||
5 | Section 40-5. Findings. The General Assembly finds that: | ||||||
6 | (1) public participation is an important consideration | ||||||
7 | in Illinois Commerce Commission proceedings; | ||||||
8 | (2) public stakeholders face financial challenges in | ||||||
9 | participating at Illinois Commerce Commission proceedings, | ||||||
10 | including retaining legal representation and expert | ||||||
11 | witnesses; | ||||||
12 | (3) it is in the public interest to reduce barriers to | ||||||
13 | participation in Illinois Commerce Commission proceedings, | ||||||
14 | particularly for environmental justice and other public | ||||||
15 | interest organizations; | ||||||
16 | (4) provision of compensation for participating | ||||||
17 | organizations will improve Illinois Commerce Commission | ||||||
18 | proceedings and decisions, increase public engagement, and | ||||||
19 | encourage additional transparency. | ||||||
20 | Section 40-10. Definitions. As used in this Act: | ||||||
21 | "Commission" means the Illinois Commerce Commission. | ||||||
22 | "Compensation" means payment for all or part, as |
| |||||||
| |||||||
1 | determined by the Commission, of reasonable advocate's fees, | ||||||
2 | reasonable expert witness fees, and other reasonable costs of | ||||||
3 | preparation for and participation in a proceeding, and | ||||||
4 | includes the fees and costs of obtaining an award under this | ||||||
5 | article and of obtaining judicial review, if any. | ||||||
6 | "Contribution" means that the customer's presentation has | ||||||
7 | met the following standard: | ||||||
8 | (1) For any customer, the presentation has assisted | ||||||
9 | the Commission in the making of its order or decision | ||||||
10 | because the order or decision has adopted in whole or in | ||||||
11 | part one or more factual contentions, legal contentions, | ||||||
12 | or specific policy or procedural recommendations presented | ||||||
13 | by the customer. For any customer, where the customer's | ||||||
14 | participation has resulted in a contribution, even if the | ||||||
15 | decision adopts that customer's contention or | ||||||
16 | recommendations only in part, the Commission may award the | ||||||
17 | customer compensation for all reasonable advocate's fees, | ||||||
18 | reasonable expert fees, and other reasonable costs | ||||||
19 | incurred by the customer in preparing or presenting that | ||||||
20 | contention or recommendation. Participation by any | ||||||
21 | customer that materially supplements, complements, or | ||||||
22 | contributes to the presentation of another party, | ||||||
23 | including the Commission staff, that makes a contribution | ||||||
24 | to a Commission order or decision is fully eligible for | ||||||
25 | compensation. | ||||||
26 | (2) For customers with fewer than 3 attorneys on |
| |||||||
| |||||||
1 | staff, the customer introduces a relevant argument or | ||||||
2 | factual evidence into the docket, garners a response from | ||||||
3 | another party to the proceeding, and files briefs. | ||||||
4 | (3) For customers without attorneys on staff, the | ||||||
5 | customer introduces a relevant argument or factual | ||||||
6 | evidence into the docket. | ||||||
7 | "Customer" means any of the following: | ||||||
8 | (1) A participant representing consumers, customers, | ||||||
9 | or subscribers of any electrical, gas, telephone, or water | ||||||
10 | corporation that is subject to the jurisdiction of the | ||||||
11 | Commission. | ||||||
12 | (2) A representative who has been authorized by a | ||||||
13 | customer. | ||||||
14 | (3) A representative of a group or organization | ||||||
15 | authorized pursuant to its articles of incorporation or | ||||||
16 | bylaws to represent the interests of residential | ||||||
17 | customers, or to represent small commercial customers who | ||||||
18 | receive bundled electric service from an electrical | ||||||
19 | corporation. | ||||||
20 | (4) an organization representing environmental justice | ||||||
21 | communities. | ||||||
22 | "Customer" does not include any state, federal, or local | ||||||
23 | governmental agency, or any publicly owned public utility. | ||||||
24 | "Customer" must be a nonprofit organization. | ||||||
25 | "Environmental justice communities" means the definition | ||||||
26 | of that term based on existing methodologies and findings, |
| |||||||
| |||||||
1 | used and as may be updated by the Illinois Power Agency and its | ||||||
2 | program administrator in the Illinois Solar for All Program. | ||||||
3 | "Expert witness fees" means recorded or billed costs | ||||||
4 | incurred by a customer for an expert witness. | ||||||
5 | "Other reasonable costs" means reasonable out-of-pocket | ||||||
6 | expenses directly incurred by a customer that are directly | ||||||
7 | related to the contentions or recommendations made by the | ||||||
8 | customer that resulted in a contribution. | ||||||
9 | "Party" means any interested party, respondent public | ||||||
10 | utility, or Commission staff in a hearing or proceeding. | ||||||
11 | "Public utility" has the meaning ascribed to it in the | ||||||
12 | Public Utilities Act. | ||||||
13 | "Significant financial hardship" means either that the | ||||||
14 | customer cannot afford, without undue hardship, to pay the | ||||||
15 | costs of effective participation, including advocate's fees, | ||||||
16 | expert witness fees, and other reasonable costs of | ||||||
17 | participation, or that, in the case of a group or | ||||||
18 | organization, the economic interest of the individual members | ||||||
19 | of the group or organization is small in comparison to the | ||||||
20 | costs of effective participation in the proceeding. | ||||||
21 | Section 40-15. Intervenor compensation awards. The | ||||||
22 | Commission shall award reasonable advocate's fees, reasonable | ||||||
23 | expert witness fees, and other reasonable costs of preparation | ||||||
24 | for and participation in a hearing or proceeding to any | ||||||
25 | customer that complies with the procedures in Section 40-20 |
| |||||||
| |||||||
1 | and satisfies both of the following requirements: | ||||||
2 | (1) The customer's presentation makes a contribution | ||||||
3 | to the adoption, in whole or in part, of the Commission's | ||||||
4 | order or decision, as described in Section 40-10(b); and | ||||||
5 | (2) Participation or intervention without an award of | ||||||
6 | fees or costs imposes a significant financial hardship. | ||||||
7 | Section 40-20. Intervenor compensation award procedures. | ||||||
8 | (a)(1) A customer that intends to seek an award under this | ||||||
9 | article shall, within 30 days after the prehearing conference | ||||||
10 | is held, file and serve on all parties to the proceeding a | ||||||
11 | notice of intent to claim compensation. The Commission shall | ||||||
12 | determine the procedure to be used in cases in which: | ||||||
13 | (i) no prehearing conference is scheduled; | ||||||
14 | (ii) the Commission anticipates that the proceeding | ||||||
15 | will take less than 30 days; | ||||||
16 | (iii) the schedule would not reasonably allow parties | ||||||
17 | to identify issues within the time frame set forth in this | ||||||
18 | subsection; or | ||||||
19 | (iv) where new issues emerge after the time set for | ||||||
20 | filing. | ||||||
21 | (2)(i) The notice of intent to claim compensation shall | ||||||
22 | include both of the following: | ||||||
23 | (A) A statement of the nature and extent of the | ||||||
24 | customer's planned participation in the proceeding as far | ||||||
25 | as it is possible to set it out when the notice of intent |
| |||||||
| |||||||
1 | is filed. | ||||||
2 | (B) An itemized estimate of the compensation that the | ||||||
3 | customer expects to request, given the likely duration of | ||||||
4 | the proceeding as it appears at the time. | ||||||
5 | (ii) The notice of intent may also include a showing by the | ||||||
6 | customer that participation in the hearing or proceeding would | ||||||
7 | pose a significant financial hardship. Alternatively, such a | ||||||
8 | showing shall be included in the request submitted pursuant to | ||||||
9 | subsection (c). | ||||||
10 | (3) Within 15 days after service of the notice of intent to | ||||||
11 | claim compensation, the administrative law judge may direct | ||||||
12 | the staff, and may permit any other interested party, to file a | ||||||
13 | statement responding to the notice. | ||||||
14 | (b)(1) If the customer's showing of significant financial | ||||||
15 | hardship was included in the notice filed pursuant to | ||||||
16 | subsection (a), the administrative law judge shall issue | ||||||
17 | within 30 days thereafter a preliminary ruling addressing | ||||||
18 | whether the customer is eligible for an award of compensation. | ||||||
19 | The ruling shall address whether a showing of significant | ||||||
20 | financial hardship has been made. A finding of significant | ||||||
21 | financial hardship shall create a rebuttable presumption of | ||||||
22 | eligibility for compensation in other Commission proceedings | ||||||
23 | commencing within 2 years after the date of that finding. | ||||||
24 | (2) The administrative law judge may, in any event, issue | ||||||
25 | a ruling addressing issues raised by the notice of intent to | ||||||
26 | claim compensation. The ruling may point out similar |
| |||||||
| |||||||
1 | positions, areas of potential duplication in showings, | ||||||
2 | unrealistic expectation for compensation, and any other matter | ||||||
3 | that may affect the customer's ultimate claim for | ||||||
4 | compensation. Failure of the ruling to point out similar | ||||||
5 | positions or potential duplication or any other potential | ||||||
6 | impact on the ultimate claim for compensation shall not imply | ||||||
7 | approval of any claim for compensation. A finding of | ||||||
8 | significant financial hardship in no way ensures compensation. | ||||||
9 | Similarly, the failure of the customer to identify a specific | ||||||
10 | issue in the notice of intent or to precisely estimate | ||||||
11 | potential compensation shall not preclude an award of | ||||||
12 | reasonable compensation if a contribution is made. | ||||||
13 | (c) Following issuance of a final order or decision by the | ||||||
14 | Commission in the hearing or proceeding, a customer that has | ||||||
15 | been found, pursuant to subsection (b), to be eligible for an | ||||||
16 | award of compensation may file within 60 days a request for an | ||||||
17 | award. The request shall include at a minimum a detailed | ||||||
18 | description of services and expenditures and a description of | ||||||
19 | the customer's contribution to the hearing or proceeding. | ||||||
20 | Within 30 days after service of the request, the Commission | ||||||
21 | staff may file, and any other party may file, a response to the | ||||||
22 | request. | ||||||
23 | (d) The Commission may audit the records and books of the | ||||||
24 | customer to the extent necessary to verify the basis for the | ||||||
25 | award. The Commission shall preserve the confidentiality of | ||||||
26 | the customer's records in making its audit. Within 20 days |
| |||||||
| |||||||
1 | after completion of the audit, if any, the Commission shall | ||||||
2 | direct that an audit report shall be prepared and filed. Any | ||||||
3 | other party may file a response to the audit report within 20 | ||||||
4 | days thereafter. | ||||||
5 | (e) Within 75 days after the filing of a request for | ||||||
6 | compensation pursuant to subsection (c), or within 50 days | ||||||
7 | after the filing of an audit report, whichever occurs later, | ||||||
8 | the Commission shall issue a decision that determines whether | ||||||
9 | or not the customer has made a contribution to the final order | ||||||
10 | or decision in the hearing or proceeding. If the Commission | ||||||
11 | finds that the customer requesting compensation has made a | ||||||
12 | contribution, the Commission shall describe this contribution | ||||||
13 | and shall determine the amount of compensation to be paid. | ||||||
14 | Section 40-25. Calculation of intervenor compensation | ||||||
15 | awards. The computation of compensation awarded shall take | ||||||
16 | into consideration the market rates paid to persons of | ||||||
17 | comparable training and experience who offer similar services. | ||||||
18 | The compensation awarded may not exceed the comparable market | ||||||
19 | rate for services paid by the Commission or the public | ||||||
20 | utility, whichever is greater, to persons of comparable | ||||||
21 | training and experience who are offering similar services. | ||||||
22 | Section 40-30. Intervenor compensation payments and cost | ||||||
23 | recovery. An award made under this Act shall be paid by the | ||||||
24 | public utility that is the subject of the hearing, |
| |||||||
| |||||||
1 | investigation, or proceeding, as determined by the Commission, | ||||||
2 | within 30 days. Notwithstanding any other law, an award paid | ||||||
3 | by a public utility pursuant to this Act shall be allowed by | ||||||
4 | the Commission as an expense for the purpose of establishing | ||||||
5 | rates of the public utility. | ||||||
6 | Section 40-35. Denial of intervenor compensation payments. | ||||||
7 | The Commission shall deny any award to any customer that | ||||||
8 | attempts to delay or obstruct the orderly and timely | ||||||
9 | fulfillment of the Commission's responsibilities. | ||||||
10 | Section 40-40. Illinois Commerce Commission Intervenor | ||||||
11 | Compensation Fund. The Illinois Commerce Commission Intervenor | ||||||
12 | Compensation Fund is hereby created as a special fund in the | ||||||
13 | State treasury. The Commission shall administer the Illinois | ||||||
14 | Commerce Commission Intervenor Compensation Fund for use as | ||||||
15 | described in Section 40-45. An electric public utility with | ||||||
16 | 3,000,000 or more retail customers shall contribute $450,000 | ||||||
17 | to the Illinois Commerce Commission Intervenor Compensation | ||||||
18 | Fund within 60 days after the effective date of this Act. A | ||||||
19 | combined electric and gas public utility serving fewer than | ||||||
20 | 3,000,000 but more than 500,000 retail customers shall | ||||||
21 | contribute $225,000 to the Illinois Commerce Commission | ||||||
22 | Intervenor Compensation Fund within 60 days after the | ||||||
23 | effective date of this Act. A gas public utility with | ||||||
24 | 2,000,000 or more retail customers that is not a combined |
| |||||||
| |||||||
1 | electric and gas public utility shall contribute $225,000 to | ||||||
2 | the Illinois Commerce Commission Intervenor Compensation Fund | ||||||
3 | within 60 days after the effective date of this Act. A gas | ||||||
4 | public utility with fewer than 2,000,000 retail customers but | ||||||
5 | more than 300,000 retail customers that is not a combined | ||||||
6 | electric and gas public utility shall contribute $80,000 to | ||||||
7 | the Illinois Commerce Commission Intervenor Compensation Fund | ||||||
8 | within 60 days after the effective date of this Act. A gas | ||||||
9 | public utility with fewer than 300,000 retail customers that | ||||||
10 | is not a combined electric and gas public utility shall | ||||||
11 | contribute $20,000 to the Illinois Commerce Commission | ||||||
12 | Intervenor Compensation Fund within 60 days after the | ||||||
13 | effective date of this Act. | ||||||
14 | Section 40-45. Intervenor compensation pre-proceeding | ||||||
15 | grants. | ||||||
16 | (a) Any customer that applies for intervenor compensation | ||||||
17 | payments under subsection (a) of Section 40-20 may also, at | ||||||
18 | the same time, apply for a grant from the Illinois Commerce | ||||||
19 | Commission Intervenor Compensation Fund for the costs | ||||||
20 | described in its notice of intent to claim compensation. A | ||||||
21 | final decision regarding the grant shall be made at the time of | ||||||
22 | the preliminary ruling on intervenor compensation eligibility | ||||||
23 | in subsection (b) of Section 40-20. No pre-proceeding grant | ||||||
24 | shall be given to organizations who are not found to be | ||||||
25 | eligible for intervenor compensation. If granted, payments |
| |||||||
| |||||||
1 | must be made within 30 days to facilitate participation in the | ||||||
2 | proceeding. At the time of the final decision regarding the | ||||||
3 | grant, the Commission shall notify the customer of the | ||||||
4 | requirements to be awarded intervenor compensation and that, | ||||||
5 | if the customer does not prevail in receiving intervenor | ||||||
6 | compensation of at least the amount of the grant, the customer | ||||||
7 | will be expected to reimburse the Illinois Commerce Commission | ||||||
8 | Intervenor Compensation Fund for the remaining grant moneys on | ||||||
9 | a regular schedule within 5 years of the end of the proceeding. | ||||||
10 | After notification, the customer may accept or deny receipt of | ||||||
11 | the grant. | ||||||
12 | (b) To apply for a grant from the Illinois Commerce | ||||||
13 | Commission Intervenor Compensation Fund, the customer must | ||||||
14 | describe why prepayment of intervenor compensation is | ||||||
15 | necessary for it to participate in the proceeding and show | ||||||
16 | financial hardship sufficient that the customer cannot | ||||||
17 | reasonably be expected to participate without receiving a | ||||||
18 | grant. | ||||||
19 | (c) If a customer that receives a grant from the Illinois | ||||||
20 | Commerce Commission Intervenor Compensation Fund subsequently | ||||||
21 | prevails in receiving intervenor compensation, the public | ||||||
22 | utility paying intervenor compensation must reimburse the fund | ||||||
23 | for the amount of the grant. If the intervenor compensation | ||||||
24 | amount is larger than the grant, then the balance shall be paid | ||||||
25 | to the customer. If the amount of intervenor compensation is | ||||||
26 | less than the grant, then the customer must reimburse the |
| |||||||
| |||||||
1 | Illinois Commerce Commission Intervenor Compensation Fund for | ||||||
2 | the difference with payments made on a regular schedule within | ||||||
3 | 5 years after the end of the proceeding. | ||||||
4 | (d) If a customer that receives a grant from the Illinois | ||||||
5 | Commerce Commission Intervenor Compensation Fund does not | ||||||
6 | subsequently prevail in receiving intervenor compensation, | ||||||
7 | then the customer must reimburse the Illinois Commerce | ||||||
8 | Commission Intervenor Compensation Fund for the amount of the | ||||||
9 | grant with payments made on a regular schedule within 5 years | ||||||
10 | of the end of the proceeding. | ||||||
11 | Section 40-50. Rulemaking. The Commission shall adopt any | ||||||
12 | rules necessary to implement this Act. The Commission has the | ||||||
13 | authority to initiate an emergency rulemaking to adopt rules | ||||||
14 | regarding intervenor compensation if necessary to allow | ||||||
15 | customer participation in dockets implementing new statutes. | ||||||
16 | Article 45. Electric Vehicle Charging Act | ||||||
17 | Section 45-1. Short title. This Article may be cited the | ||||||
18 | Electric Vehicle Charging Act. References in this Article to | ||||||
19 | "this Act" mean this Article. | ||||||
20 | Section 45-5. Legislative intent. Electric vehicles are an | ||||||
21 | important tool to fight the climate crisis, tackle air | ||||||
22 | pollution, and provide safe, clean, and affordable personal |
| |||||||
| |||||||
1 | transportation. The State should encourage urgent and | ||||||
2 | widespread adoption of electric vehicles. Since most current | ||||||
3 | electric vehicle owners are single-family homeowners who | ||||||
4 | charge at home, providing access to home charging for those in | ||||||
5 | multi-unit dwellings is crucial to wider electric vehicle | ||||||
6 | adoption. This includes condominium unit owners and renters, | ||||||
7 | regardless of parking space ownership and regardless of | ||||||
8 | income. Therefore, a significant portion of parking spaces in | ||||||
9 | new and renovated residential and commercial developments must | ||||||
10 | be capable of electric vehicle charging. Additionally, renters | ||||||
11 | and condominium unit owners must be able to install charging | ||||||
12 | equipment for their cars under reasonable conditions. | ||||||
13 | Section 45-10. Applicability. This Act applies to new or | ||||||
14 | renovated residential or nonresidential buildings that have | ||||||
15 | parking spaces and are constructed or renovated after the | ||||||
16 | effective date of this Act. | ||||||
17 | Section 45-15. Definitions. As used in this Act: | ||||||
18 | "Association" has the meaning set forth in subsection (o) | ||||||
19 | of Section 2 of the Condominium Property Act or Section 1-5 of | ||||||
20 | the Common Interest Community Association Act, as applicable. | ||||||
21 | "Electric vehicle" means a vehicle that is powered by an | ||||||
22 | electric motor, runs on a rechargeable battery, and must be | ||||||
23 | plugged in to charge or charged wirelessly. | ||||||
24 | "Electric vehicle capable" means having an installed |
| |||||||
| |||||||
1 | electrical panel capacity with a dedicated branch circuit and | ||||||
2 | a continuous raceway from the panel to the future electric | ||||||
3 | vehicle parking space. | ||||||
4 | "Electric vehicle station" means a station that is | ||||||
5 | designed in compliance with the relevant building code and | ||||||
6 | delivers electricity from a source outside an electric vehicle | ||||||
7 | into one or more electric vehicles. | ||||||
8 | "Electric vehicle system" includes several charging points | ||||||
9 | simultaneously connecting several electric vehicles to the | ||||||
10 | electric vehicle charging station and any related equipment | ||||||
11 | needed to facilitate charging an electric vehicle. "Electric | ||||||
12 | vehicle charging system" means a device that is: | ||||||
13 | (1) used to provide electricity to an electric | ||||||
14 | vehicle; | ||||||
15 | (2) designed to ensure that a safe connection has been | ||||||
16 | made between the electric grid and the electric vehicle; | ||||||
17 | and | ||||||
18 | (3) able to communicate with the vehicle's control | ||||||
19 | system so that electricity flows at an appropriate voltage | ||||||
20 | and current level. An electric vehicle charging system may | ||||||
21 | be wall mounted or pedestal style, may provide multiple | ||||||
22 | cords to connect with electric vehicles, and shall: | ||||||
23 | (i) be certified by underwriters laboratories or | ||||||
24 | have been granted an equivalent certification; and | ||||||
25 | (ii) comply with the current version of Article | ||||||
26 | 625 of the National Electrical Code. |
| |||||||
| |||||||
1 | "Electric vehicle supply equipment" means a conductor, | ||||||
2 | including an ungrounded, grounded, and equipment grounding | ||||||
3 | conductor, and electric vehicle connectors, attachment plugs, | ||||||
4 | and all other fittings, devices, power outlets, and | ||||||
5 | apparatuses installed specifically for the purpose of | ||||||
6 | transferring energy between the premises wirings and the | ||||||
7 | electric vehicle. | ||||||
8 | "Electric vehicle ready" means a parking space that is | ||||||
9 | designed and constructed to include a fully-wired
circuit with | ||||||
10 | a 208-volt to 250-volt, rated no more than 50-ampere electric | ||||||
11 | vehicle charging receptacle outlet or termination point, | ||||||
12 | including the conduit, wiring, and electrical service capacity | ||||||
13 | necessary to serve that receptacle, to allow for future | ||||||
14 | electric vehicle supply equipment. | ||||||
15 | "Level 1" means a charging system that provides charging | ||||||
16 | through a 120-volt AC plug with a cord connector that meets the | ||||||
17 | SAE International J2954 standard or successor standard. | ||||||
18 | "Level 2" means a charging system that provides charging | ||||||
19 | through a 208-volt to 240-volt AC plug with a cord connector | ||||||
20 | that meets the SAE International J2954 standard or a successor | ||||||
21 | standard. | ||||||
22 | "New" means any newly constructed building and associated | ||||||
23 | newly constructed parking facility. | ||||||
24 | "Reasonable restriction" means a restriction that does not | ||||||
25 | significantly increase the cost of the electric vehicle | ||||||
26 | charging station or electric vehicle charging system or |
| |||||||
| |||||||
1 | significantly decrease its efficiency or specified | ||||||
2 | performance. | ||||||
3 | "Renovated" means altered or added where electrical | ||||||
4 | service capacity is increased. | ||||||
5 | Section 45-20. Residential requirements. A new or | ||||||
6 | renovated residential building shall have: | ||||||
7 | (1) 100% of its total parking spaces electric vehicle | ||||||
8 | ready, if there are one to 6 parking spaces; | ||||||
9 | (2) 100% of its total parking spaces electric vehicle | ||||||
10 | capable, of which at least 20% shall be electric vehicle | ||||||
11 | ready, if there are 6 to 23 parking spaces; or | ||||||
12 | (3) 100% of its total parking spaces electric vehicle | ||||||
13 | capable, if there are 24 or more parking spaces, of which | ||||||
14 | at least 5 spots shall be EV Ready. Additionally, if there | ||||||
15 | are 24 or more parking spaces, a new or renovated | ||||||
16 | residential building shall provide at least one parking | ||||||
17 | space with electric vehicle supply equipment installed, | ||||||
18 | and for each additional parking space with electric | ||||||
19 | vehicle supply equipment installed, the electric vehicle | ||||||
20 | ready requirement is decreased by 2%. | ||||||
21 | Where additional parking exists or is feasible, each | ||||||
22 | parking space shall be marked and signed for common use by | ||||||
23 | residents. A resident shall use an electric vehicle parking | ||||||
24 | space only when he or she is charging his or her electric | ||||||
25 | vehicle. |
| |||||||
| |||||||
1 | Section 45-25. Nonresidential requirements. A new or | ||||||
2 | renovated nonresidential building shall have 20% of its total | ||||||
3 | parking spaces electric vehicle ready. | ||||||
4 | Section 45-30. Electric vehicle charging station policy | ||||||
5 | for unit owners. | ||||||
6 | (a) Any covenant, restriction, or condition contained in | ||||||
7 | any deed, contract, security interest, or other instrument | ||||||
8 | affecting the transfer or sale of any interest in a | ||||||
9 | condominium or common interest community, and any provision of | ||||||
10 | a governing document that effectively prohibits or | ||||||
11 | unreasonably restricts the installation or use of an electric | ||||||
12 | vehicle charging station within a unit owner's unit or a | ||||||
13 | designated parking space, including, but not limited to, a | ||||||
14 | deeded parking space, a parking space in a unit owner's | ||||||
15 | exclusive use common area, or a parking space that is | ||||||
16 | specifically designated for use by a particular unit owner, or | ||||||
17 | is in conflict with this Section, is void and unenforceable. | ||||||
18 | (b) This Section does not apply to provisions that impose | ||||||
19 | a reasonable restriction on an electric vehicle charging | ||||||
20 | station. However, it is the policy of this State to promote, | ||||||
21 | encourage, and remove obstacles to the use of an electric | ||||||
22 | vehicle charging station. | ||||||
23 | (c) An electric vehicle charging station shall meet | ||||||
24 | applicable health and safety standards and requirements |
| |||||||
| |||||||
1 | imposed by State and local authorities, and all other | ||||||
2 | applicable zoning, land use, or other ordinances or land use | ||||||
3 | permits. | ||||||
4 | (d) If approval is required for the installation or use of | ||||||
5 | an electric vehicle charging station, the association shall | ||||||
6 | process and approve the application in the same manner as an | ||||||
7 | application for approval of an architectural modification to | ||||||
8 | the property, and the association shall not willfully avoid or | ||||||
9 | delay the adjudication of the application. The approval or | ||||||
10 | denial of an application shall be in writing. If an | ||||||
11 | application is not denied in writing within 60 days from the | ||||||
12 | date of the receipt of the application, the application shall | ||||||
13 | be deemed approved unless the delay is the result of a | ||||||
14 | reasonable request for additional information. | ||||||
15 | (e) If the electric vehicle charging station is to be | ||||||
16 | placed in a common area or exclusive use common area, as | ||||||
17 | designated by the condominium or common interest community | ||||||
18 | association, the following applies: | ||||||
19 | (1) The unit owner shall first obtain approval from | ||||||
20 | the association to install the electric vehicle charging | ||||||
21 | station and the association shall approve the installation | ||||||
22 | if the unit owner agrees, in writing, to: | ||||||
23 | (i) comply with the association's architectural | ||||||
24 | standards for the installation of the electric vehicle | ||||||
25 | charging station; | ||||||
26 | (ii) engage a licensed electrical contractor to |
| |||||||
| |||||||
1 | install the electric vehicle charging station; | ||||||
2 | (iii) within 14 days after approval, provide a | ||||||
3 | certificate of insurance that names the association as | ||||||
4 | an additional insured party under the unit owner's | ||||||
5 | insurance policy as required under paragraph (3); and | ||||||
6 | (iv) pay for both the costs associated with the | ||||||
7 | installation of and the electricity usage associated | ||||||
8 | with the electric vehicle charging station. | ||||||
9 | (2) The unit owner, and each successive unit owner of | ||||||
10 | the electric vehicle charging station, is responsible for: | ||||||
11 | (i) costs for damage to the electric vehicle | ||||||
12 | charging station, common area, exclusive use common | ||||||
13 | area, or separate interests resulting from the | ||||||
14 | installation, maintenance, repair, removal, or | ||||||
15 | replacement of the electric vehicle charging station; | ||||||
16 | (ii) costs for the maintenance, repair, and | ||||||
17 | replacement of the electric vehicle charging station | ||||||
18 | until it has been removed, and for the restoration of | ||||||
19 | the common area after removal; | ||||||
20 | (iii) costs of electricity associated with the | ||||||
21 | charging station, which shall be based on: | ||||||
22 | (A) an inexpensive submetering device; or | ||||||
23 | (B) a reasonable calculation of cost, based on | ||||||
24 | the average miles driven, efficiency of the | ||||||
25 | electric vehicle calculated by the United States | ||||||
26 | Environmental Protection Agency, and the cost of |
| |||||||
| |||||||
1 | electricity for the common area; and | ||||||
2 | (iv) disclosing to a prospective buyer the | ||||||
3 | existence of any electric vehicle charging station of | ||||||
4 | the unit owner and the related responsibilities of the | ||||||
5 | unit owner under this Section. | ||||||
6 | (3) The purpose of the costs under paragraph (2) is | ||||||
7 | for the reasonable reimbursement of electricity usage, and | ||||||
8 | shall not be set to deliberately exceed the reasonable | ||||||
9 | reimbursement. | ||||||
10 | (4) The unit owner of the electric vehicle charging | ||||||
11 | station, whether the electric vehicle charging station is | ||||||
12 | located within the common area or exclusive use common | ||||||
13 | area, shall, at all times, maintain a liability coverage | ||||||
14 | policy. The unit owner that submitted the application to | ||||||
15 | install the electric vehicle charging station shall | ||||||
16 | provide the association with the corresponding certificate | ||||||
17 | of insurance with 14 days after approval of the | ||||||
18 | application. The unit owner, and each successive unit | ||||||
19 | owner, shall provide the association with the certificate | ||||||
20 | of insurance annually thereafter. | ||||||
21 | (5) A unit owner is not required to maintain a | ||||||
22 | homeowner liability coverage policy for an existing | ||||||
23 | National Electrical Manufacturers Association standard | ||||||
24 | alternating current power plug. | ||||||
25 | (f) Except as provided in subsection (g), the installation | ||||||
26 | of an electric vehicle charging station for the exclusive use |
| |||||||
| |||||||
1 | of a unit owner in a common area that is not an exclusive use | ||||||
2 | common area shall be authorized by the association only if | ||||||
3 | installation in the unit owner's designated parking space is | ||||||
4 | impossible or unreasonably expensive. In such an event, the | ||||||
5 | association shall enter into a license agreement with the unit | ||||||
6 | owner for the use of the space in a common area, and the unit | ||||||
7 | owner shall comply with all of the requirements in subsection | ||||||
8 | (e). | ||||||
9 | (g) An association may install an electric vehicle | ||||||
10 | charging station in the common area for the use of all unit | ||||||
11 | owners and members of the association. The association shall | ||||||
12 | develop appropriate terms of use for the electric vehicle | ||||||
13 | charging station. | ||||||
14 | (h) An association may create a new parking space where | ||||||
15 | one did not previously exist to facilitate the installation of | ||||||
16 | an electric vehicle charging station. | ||||||
17 | (i) An association that willfully violates this Section | ||||||
18 | shall be liable to the unit owner for actual damages and shall | ||||||
19 | pay a civil penalty to the unit owner not to exceed $1,000. | ||||||
20 | (j) In any action by a unit owner requesting to have an | ||||||
21 | electric vehicle charging station installed and seeking to | ||||||
22 | enforce compliance with this Section, the court shall award | ||||||
23 | reasonable attorney's fees to a prevailing plaintiff. | ||||||
24 | Section 45-35. Electric vehicle charging system policy for | ||||||
25 | renters. |
| |||||||
| |||||||
1 | (a) Notwithstanding any provision in the lease to the | ||||||
2 | contrary, and subject to subsection (b): | ||||||
3 | (1) A tenant may install, at the tenant's expense for | ||||||
4 | the tenant's own use, a level 1 or level 2 electric vehicle | ||||||
5 | charging system on or in the leased premises. | ||||||
6 | (2) A landlord shall not assess or charge a tenant any | ||||||
7 | fee for the placement or use of an electric vehicle | ||||||
8 | charging system, except that: | ||||||
9 | (i) The landlord may: | ||||||
10 | (A) require reimbursement for the actual cost | ||||||
11 | of electricity provided by the landlord that was | ||||||
12 | used by the electric vehicle charging system; or | ||||||
13 | (B) charge a reasonable fee for access. If the | ||||||
14 | electric vehicle charging system is part of a | ||||||
15 | network for which a network fee is charged, the | ||||||
16 | landlord's reimbursement may include the amount of | ||||||
17 | the network fee. Nothing in this subparagraph | ||||||
18 | requires a landlord to impose upon a tenant a fee | ||||||
19 | or charge other than the rental payments specified | ||||||
20 | in the lease. | ||||||
21 | (ii) The landlord may require reimbursement for | ||||||
22 | the cost of the installation of the electric vehicle | ||||||
23 | charging system, including any additions or upgrades | ||||||
24 | to existing wiring directly attributable to the | ||||||
25 | requirements of the electric vehicle charging system, | ||||||
26 | if the landlord places or causes the electric vehicle |
| |||||||
| |||||||
1 | charging system to be placed at the request of the | ||||||
2 | tenant. | ||||||
3 | (iii) If the tenant desires to place an electric | ||||||
4 | vehicle charging system in an area accessible to other | ||||||
5 | tenants, the landlord may assess or charge the tenant | ||||||
6 | a reasonable fee to reserve a specific parking space | ||||||
7 | in which to install the electric vehicle charging | ||||||
8 | system. | ||||||
9 | (b) A landlord may require a tenant to comply with: | ||||||
10 | (1) bona fide safety requirements consistent with an | ||||||
11 | applicable building code or recognized safety standard for | ||||||
12 | the protection of persons and property; | ||||||
13 | (2) a requirement that the electric vehicle charging | ||||||
14 | system be registered with the landlord within 30 days | ||||||
15 | after installation; or | ||||||
16 | (3) reasonable aesthetic provisions that govern the | ||||||
17 | dimensions, placement, or external appearance of an | ||||||
18 | electric vehicle charging system. | ||||||
19 | (c) A tenant may place an electric vehicle charging system | ||||||
20 | in an area accessible to other tenants if: | ||||||
21 | (1) the electric vehicle charging system is in | ||||||
22 | compliance with all applicable requirements adopted by a | ||||||
23 | landlord under subsection (b); and | ||||||
24 | (2) the tenant agrees, in writing, to: | ||||||
25 | (i) comply with the landlord's design | ||||||
26 | specifications for the installation of an electric |
| |||||||
| |||||||
1 | vehicle charging system; | ||||||
2 | (ii) engage the services of a duly licensed and | ||||||
3 | registered electrical contractor familiar with the | ||||||
4 | installation and code requirements of an electric | ||||||
5 | vehicle charging system; and | ||||||
6 | (iii) provide, within 14 days after receiving the | ||||||
7 | landlord's consent for the installation, a certificate | ||||||
8 | of insurance naming the landlord as an additional | ||||||
9 | insured party on the tenant's renter's insurance | ||||||
10 | policy for any claim related to the installation, | ||||||
11 | maintenance, or use of the electric vehicle charging | ||||||
12 | system or, at the landlord's option, reimbursement to | ||||||
13 | the landlord for the actual cost of any increased | ||||||
14 | insurance premium amount attributable to the electric | ||||||
15 | vehicle charging system, notwithstanding any provision | ||||||
16 | to the contrary in the lease. The tenant shall provide | ||||||
17 | reimbursement for an increased insurance premium | ||||||
18 | amount within 14 days after the tenant receives the | ||||||
19 | landlord's invoice for the amount attributable to the | ||||||
20 | electric vehicle charging system. | ||||||
21 | (d) If the landlord consents to a tenant's installation of | ||||||
22 | an electric vehicle charging system on property accessible to | ||||||
23 | other tenants, including a parking space, carport, or garage | ||||||
24 | stall, then, unless otherwise specified in a written agreement | ||||||
25 | with the landlord: | ||||||
26 | (1) The tenant, and each successive tenant with |
| |||||||
| |||||||
1 | exclusive rights to the area where the electric vehicle | ||||||
2 | charging system is installed, is responsible for costs for | ||||||
3 | damages to the electric vehicle charging system and to any | ||||||
4 | other property of the landlord or another tenant resulting | ||||||
5 | from the installation, maintenance, repair, removal, or | ||||||
6 | replacement of the electric vehicle charging system. | ||||||
7 | (i) Costs under this paragraph shall be based on: | ||||||
8 | (A) an inexpensive submetering device; or | ||||||
9 | (B) a reasonable calculation of cost, based on | ||||||
10 | the average miles driven, efficiency of the | ||||||
11 | electric vehicle calculated by the United States | ||||||
12 | Environmental Protection Agency, and the cost of | ||||||
13 | electricity for the common area. | ||||||
14 | (ii) The purpose of the costs under this paragraph | ||||||
15 | is for reasonable reimbursement of electricity usage | ||||||
16 | and shall not be set to deliberately exceed that | ||||||
17 | reasonable reimbursement. | ||||||
18 | (2) Each successive tenant with exclusive rights to | ||||||
19 | the area where the electric vehicle charging system is | ||||||
20 | installed shall assume responsibility for the repair, | ||||||
21 | maintenance, removal, and replacement of the electric | ||||||
22 | vehicle charging system until the electric vehicle | ||||||
23 | charging system is removed. | ||||||
24 | (3) The tenant, and each successive tenant with | ||||||
25 | exclusive rights to the area where the electric vehicle | ||||||
26 | charging system is installed, shall, at all times, have |
| |||||||
| |||||||
1 | and maintain an insurance policy covering the obligations | ||||||
2 | of the tenant under this subsection and shall name the | ||||||
3 | landlord as an additional insured party under the policy. | ||||||
4 | (4) The tenant, and each successive tenant with | ||||||
5 | exclusive rights to the area where the electric vehicle | ||||||
6 | charging system is installed, is responsible for removing | ||||||
7 | the system if reasonably necessary or convenient for the | ||||||
8 | repair, maintenance, or replacement of any property of the | ||||||
9 | landlord, whether or not leased to another tenant. | ||||||
10 | (e) An electric vehicle charging system installed at the | ||||||
11 | tenant's cost is the property of the tenant. Upon termination | ||||||
12 | of the lease, if the electric vehicle charging system is | ||||||
13 | removable, the tenant may either remove it or sell it to the | ||||||
14 | landlord or another tenant for an agreed price. Nothing in | ||||||
15 | this subsection requires the landlord or another tenant to | ||||||
16 | purchase the electric vehicle charging system. | ||||||
17 | (f) A landlord that willfully violates this Section shall | ||||||
18 | be liable to the tenant for actual damages, and shall pay a | ||||||
19 | civil penalty to the tenant in an amount not to exceed $1,000. | ||||||
20 | (g) In any action by a tenant requesting to have an | ||||||
21 | electric vehicle charging system installed and seeking to | ||||||
22 | enforce compliance with this Section, the court shall award | ||||||
23 | reasonable attorney's fees to a prevailing plaintiff. | ||||||
24 | Article 90. Amendatory Provisions |
| |||||||
| |||||||
1 | Section 90-5. The Illinois Administrative Procedure Act is | ||||||
2 | amended by adding Sections 5-45.8, 5-45.9, and 5-49.10 as | ||||||
3 | follows: | ||||||
4 | (5 ILCS 100/5-45.8 new) | ||||||
5 | Sec. 5-45.8. Emergency rulemaking; Energy Community | ||||||
6 | Reinvestment Act. To provide for the expeditious and timely | ||||||
7 | implementation of the Energy Community Reinvestment Act, | ||||||
8 | emergency rules may be adopted in accordance with Section 5-45 | ||||||
9 | by the Department of Commerce and Economic Opportunity to | ||||||
10 | implement Section 20-15 of the Energy Community Reinvestment | ||||||
11 | Act with respect to applications for designation as Clean | ||||||
12 | Energy Empowerment Zones. The adoption of emergency rules | ||||||
13 | authorized by Section 5-45 and this Section is deemed to be | ||||||
14 | necessary for the public interest, safety, and welfare. | ||||||
15 | (5 ILCS 100/5-45.9 new) | ||||||
16 | Sec. 5-45.9. Emergency rulemaking; Public Utilities Act. | ||||||
17 | To provide for the expeditious and timely implementation of | ||||||
18 | this amendatory Act of the 102nd General Assembly, emergency | ||||||
19 | rules may be adopted in accordance with Section 5-45 by the | ||||||
20 | Illinois Commerce Commission to implement the changes made by | ||||||
21 | this amendatory Act of the 102nd General Assembly to the | ||||||
22 | Public Utilities Act. The adoption of emergency rules | ||||||
23 | authorized by Section 5-45 and this Section is deemed to be | ||||||
24 | necessary for the public interest, safety, and welfare. |
| |||||||
| |||||||
1 | (5 ILCS 100/5-49.10 new) | ||||||
2 | Sec. 5-49.10. Emergency rulemaking; Public Utilities | ||||||
3 | Intervenor Compensation Act. To provide for the expeditious | ||||||
4 | and timely implementation of the Public Utilities Intervenor | ||||||
5 | Compensation Act, emergency rules may be adopted in accordance | ||||||
6 | with Section 5-45 by the Illinois Commerce Commission to | ||||||
7 | implement the Public Utilities Intervenor Compensation Act. | ||||||
8 | The adoption of emergency rules authorized by Section 5-45 and | ||||||
9 | this Section is deemed to be necessary for the public | ||||||
10 | interest, safety, and welfare. | ||||||
11 | This Section is repealed on January 1, 2026. | ||||||
12 | Section 90-10. The Electric Vehicle Act is amended by | ||||||
13 | adding Sections 30, 35, and 40 as follows: | ||||||
14 | (20 ILCS 627/30 new) | ||||||
15 | Sec. 30. Electric Vehicle Access for All Program. | ||||||
16 | (a) Purpose. The General Assembly finds that it is | ||||||
17 | necessary to provide access to electric vehicles to residents | ||||||
18 | in communities for individuals whom car ownership is not an | ||||||
19 | option, affordable, or a preference, particularly for | ||||||
20 | environmental justice communities and low-income communities. | ||||||
21 | (b) Definitions. As used in this Section: | ||||||
22 | "Department" means the Department of Commerce and Economic | ||||||
23 | Opportunity. |
| |||||||
| |||||||
1 | "Environmental justice communities" means the definition | ||||||
2 | of that term based on existing methodologies and findings, | ||||||
3 | used and as may be updated by the Illinois Power Agency and its | ||||||
4 | program administrator in the Illinois Solar for All Program. | ||||||
5 | "Low-income" means persons and families whose income does | ||||||
6 | not exceed 80% of area median income, adjusted for family size | ||||||
7 | and revised every 2 years. | ||||||
8 | (c) Within 120 days after the effective date of this | ||||||
9 | amendatory Act of the 102nd General Assembly, and for a period | ||||||
10 | of not less than 36 months thereafter, the Department of | ||||||
11 | Commerce and Economic Opportunity shall establish and | ||||||
12 | implement an Electric Vehicle Access for All Program designed | ||||||
13 | to maximize opportunities for carbon-free transportation | ||||||
14 | across the State, particularly targeting environmental justice | ||||||
15 | and low-income communities, which shall include the following | ||||||
16 | initiatives: | ||||||
17 | (1) Car Sharing Program. The Department of Commerce | ||||||
18 | and Economic Opportunity shall develop and implement an | ||||||
19 | Electric Vehicle Car Sharing Program that provides | ||||||
20 | residents with opportunities to use electric vehicles | ||||||
21 | owned by third parties for occasional commutes, | ||||||
22 | employment, or other needs. | ||||||
23 | (2) Carbon-Free Last Mile of Commutes Program. The | ||||||
24 | Department shall develop a Program to address the "last | ||||||
25 | mile" of commutes, enabling a larger number of residents | ||||||
26 | to access public transportation, and reduce the pollution |
| |||||||
| |||||||
1 | impact of the entire commute. | ||||||
2 | (3) Community Energy, Climate, and Jobs Plans. The | ||||||
3 | Department shall dedicate a portion of funding for local | ||||||
4 | governments' eligible Community Energy, Climate, and Jobs | ||||||
5 | Plans that include Electric Vehicle Access for All Program | ||||||
6 | initiatives. To the extent possible, the Department shall | ||||||
7 | coordinate the Electric Vehicle Access for All Program | ||||||
8 | with the other programs established in this Act. | ||||||
9 | (4) Low-income rebate program. A rebate of up to | ||||||
10 | $4,000 at time of purchase shall be made available to | ||||||
11 | low-income residents of Illinois. | ||||||
12 | (i) Such rebates are only available for new | ||||||
13 | passenger battery electric vehicles at a prerebate | ||||||
14 | cost of $45,000 or less or for used battery electric | ||||||
15 | vehicles at a prerebate cost of $35,000 or less. This | ||||||
16 | cost cut off is exclusive of any electric | ||||||
17 | vehicle-specific rebates offered by any level of | ||||||
18 | government; if the cost of the electric vehicle would | ||||||
19 | be higher than the cut off-points mentioned above | ||||||
20 | without any electric vehicle-specific rebates, then | ||||||
21 | the vehicle is not eligible for rebates. | ||||||
22 | (ii) This low-income rebate may be combined with | ||||||
23 | other rebates for eligible vehicles and drivers. The | ||||||
24 | funds for this program shall be derived from 50% of the | ||||||
25 | Electric Vehicle Access for All Program funds, up to | ||||||
26 | $5,250,000 per year. The rebate may only be applied |
| |||||||
| |||||||
1 | one time per Vehicle Identification Number. The rebate | ||||||
2 | may only be used once per person in any 5-year period. | ||||||
3 | To be eligible for the low-income rebate, a purchaser | ||||||
4 | must be a resident of Illinois and provide proof of | ||||||
5 | residence at the time of purchase. The State shall | ||||||
6 | direct rebate recipients to local electric utilities | ||||||
7 | where additional charging equipment rebates may be | ||||||
8 | available. | ||||||
9 | (c) The Electric Vehicle Access for All Program and its | ||||||
10 | initiatives shall be designed to maximize opportunities for | ||||||
11 | carbon-free transportation across the State, particularly | ||||||
12 | targeting environmental justice and low-income communities, | ||||||
13 | and to provide grants to pilot programs with the purpose of | ||||||
14 | bridging public transportation gaps between residences and | ||||||
15 | employment locations. Eligible programs may include electric | ||||||
16 | shuttles, electric and nonelectric bicycle and scooter | ||||||
17 | sharing, electric vehicle sharing, and other carbon-free | ||||||
18 | alternatives. The Department of Commerce and Economic | ||||||
19 | Opportunity shall hire or select, through a competitive | ||||||
20 | bidding program, a program administrator to oversee and | ||||||
21 | administer the Program. | ||||||
22 | (d) In conducting the Program, the Department of Commerce | ||||||
23 | and Economic Opportunity shall partner with appropriate | ||||||
24 | transit agencies, employers, community organizations, local | ||||||
25 | governments, and other transportation services to increase the | ||||||
26 | number of employment, healthcare, civic, education, or |
| |||||||
| |||||||
1 | recreation locations reachable, in coordination with public | ||||||
2 | transit, with the addition of Electric Vehicle Access for All | ||||||
3 | Program initiatives and investments. The Department of | ||||||
4 | Commerce and Economic Opportunity shall additionally partner | ||||||
5 | with local governments engaging in Community Energy, Climate, | ||||||
6 | and Job Planning, as described in the Community Energy, | ||||||
7 | Climate, and Jobs Planning Act, to implement programs | ||||||
8 | efficiently with needs identified in Community Energy, | ||||||
9 | Climate, and Jobs Plans. | ||||||
10 | (e) Projects, programs, or other initiatives funded | ||||||
11 | through this Program must participate in time-of-use rates, | ||||||
12 | hourly pricing electric rates, charging plans or rates that | ||||||
13 | encourage off-peak charging, optimized charging programs, | ||||||
14 | demand response, or similar programs as part of a beneficial | ||||||
15 | electrification program, as provided under Section 16-107.8 of | ||||||
16 | the Public Utilities Act, to the extent practicable, to | ||||||
17 | minimize the impact to the electric grid of new electric | ||||||
18 | vehicle charging infrastructure and to use electricity at | ||||||
19 | times when renewable energy generation is highest. | ||||||
20 | (f) The Department of Commerce and Economic Opportunity | ||||||
21 | shall design the Program within the budget described under | ||||||
22 | Section 16-107.8 of the Public Utilities Act and invoice the | ||||||
23 | electric utilities specified in Section 16-107.8 of the Public | ||||||
24 | Utilities Act for the costs incurred in the execution of the | ||||||
25 | Program. | ||||||
26 | (g) The Department of Commerce and Economic Opportunity |
| |||||||
| |||||||
1 | shall report to the Governor and the General Assembly | ||||||
2 | regarding the effectiveness of the Program no later than | ||||||
3 | October 1, 2023. | ||||||
4 | (20 ILCS 627/35 new) | ||||||
5 | Sec. 35. Administrative review. All final administrative | ||||||
6 | decisions, including, but not limited to, funding allocation | ||||||
7 | and rules issued by the Department under this Act are subject | ||||||
8 | to judicial review under the Administrative Review Law. No | ||||||
9 | action may be commenced under this Section prior to 60 days | ||||||
10 | after the complainant has given notice in writing of the | ||||||
11 | action to the Department. | ||||||
12 | (20 ILCS 627/40 new) | ||||||
13 | Sec. 40. Authorized expenditure of State-controlled funds | ||||||
14 | to accelerate electric vehicle adoption. | ||||||
15 | (a) Within 120 days after the effective date of this | ||||||
16 | amendatory Act of the 102nd General Assembly, the | ||||||
17 | Environmental Protection Agency must initiate a comprehensive | ||||||
18 | stakeholder process to solicit input on the development of an | ||||||
19 | updated plan for expenditure of the remaining Volkswagen | ||||||
20 | Settlement Environment Mitigation Fund and for the use of the | ||||||
21 | $70,000,000 funds from Article 8, Section 25 of Public Act | ||||||
22 | 101-29. At a minimum, the stakeholder process shall include | ||||||
23 | representatives from community-based organizations in | ||||||
24 | environmental justice communities, community-based |
| |||||||
| |||||||
1 | organizations serving economically disadvantaged persons and | ||||||
2 | families, and community-based organizations focused on | ||||||
3 | transportation equality and access. These stakeholders shall | ||||||
4 | be representative of the entire State and located throughout | ||||||
5 | the State. The Environmental Protection Agency shall provide | ||||||
6 | administrative support for the stakeholder process and all | ||||||
7 | meetings shall be accessible with rotating locations, call-in | ||||||
8 | options, and materials and agendas circulated well in advance, | ||||||
9 | and there shall be opportunities for input outside of meetings | ||||||
10 | from those with limited capacity and ability to attend via | ||||||
11 | one-on-one meetings, surveys, and calls subject to compliance | ||||||
12 | with the Open Meetings Act. The plan should prioritize the | ||||||
13 | purchase of electric vehicles and equipment, including public | ||||||
14 | transit, school buses, and other public fleet vehicles and | ||||||
15 | spending should be prioritized toward economically | ||||||
16 | disadvantaged communities and environmental justice | ||||||
17 | communities. | ||||||
18 | (b) Within 9 months after the effective date of this | ||||||
19 | amendatory Act of the 102nd General Assembly, the | ||||||
20 | Environmental Protection Agency must publish a comprehensive | ||||||
21 | plan for both the use of the Volkswagen Settlement Environment | ||||||
22 | Mitigation Fund and for the $70,000,000 funds from Article 8, | ||||||
23 | Section 25 of Public Act 101-29, as amended, reappropriated | ||||||
24 | from the Build Illinois Bond Fund to the Environmental | ||||||
25 | Protection Agency for grants for transportation | ||||||
26 | electrification infrastructure projects; including, but not |
| |||||||
| |||||||
1 | limited to grants for the purpose of encouraging electric | ||||||
2 | vehicle charging infrastructure, prioritizing investments in | ||||||
3 | medium and heavy-duty charging, and electrifying public | ||||||
4 | transit, school bus transit, and vehicles operated by or on | ||||||
5 | behalf of public agencies. Those Volkswagen and capital funds | ||||||
6 | which are allocated to charging infrastructure must be spent | ||||||
7 | within 3 years of passage and at least 25% of those funds must | ||||||
8 | be spent per year until the funds are depleted. | ||||||
9 | (c) The Environmental Protection Agency shall issue | ||||||
10 | reports, to be posted on its public website and sent to the | ||||||
11 | Illinois Commerce Commission, summarizing all funds granted | ||||||
12 | and investments made using funds from the Volkswagen | ||||||
13 | Settlement Environmental Mitigation Fund, and all grants or | ||||||
14 | investments currently planned to be made from said fund but | ||||||
15 | not yet disbursed, at a minimum of the following 3 times: | ||||||
16 | (1) no later than 2 weeks prior to the first meeting of | ||||||
17 | the Plan Development Stakeholder Process initiated by the | ||||||
18 | Illinois Commerce Commission; | ||||||
19 | (2) no later than 6 months prior to the Initiating | ||||||
20 | Orders of the Multi-Year Integrated Grid Plan by the | ||||||
21 | Illinois Commerce Commission; and | ||||||
22 | (3) when the Fund has been fully spent, or when less | ||||||
23 | than $1,000,000 remains in the fund for a period of more | ||||||
24 | than 6 months. | ||||||
25 | Section 90-12. The Energy
Efficient Building Act is |
| |||||||
| |||||||
1 | amended by changing Sections 10, 15, 20, 30, and 45 and by | ||||||
2 | adding Section 55 as follows: | ||||||
3 | (20 ILCS 3125/10) | ||||||
4 | Sec. 10. Definitions.
| ||||||
5 | "Board" means the Capital Development Board.
| ||||||
6 | "Building" includes both residential buildings and | ||||||
7 | commercial buildings.
| ||||||
8 | "Code" means the latest published edition of the | ||||||
9 | International Code Council's International Energy Conservation | ||||||
10 | Code as adopted by the Board, including any published | ||||||
11 | supplements adopted by the Board and any amendments and | ||||||
12 | adaptations to the Code that are made by the
Board.
| ||||||
13 | "Commercial building" means any building except a building | ||||||
14 | that is a residential building, as defined in this Section. | ||||||
15 | "Department" means the Department of Commerce and Economic | ||||||
16 | Opportunity. | ||||||
17 | "Municipality" means any city, village, or incorporated | ||||||
18 | town.
| ||||||
19 | "Residential building" means (i) a detached one-family or | ||||||
20 | 2-family dwelling or (ii) any building that is 3 stories or | ||||||
21 | less in height above grade that contains multiple dwelling | ||||||
22 | units, in which the occupants reside on a primarily permanent | ||||||
23 | basis, such as a townhouse, a row house, an apartment house, a | ||||||
24 | convent, a monastery, a rectory, a fraternity or sorority | ||||||
25 | house, a dormitory, and a rooming house; provided, however, |
| |||||||
| |||||||
1 | that when applied to a building located within the boundaries | ||||||
2 | of a municipality having a population of 1,000,000 or more, | ||||||
3 | the term "residential building" means a building containing | ||||||
4 | one or more dwelling units, not exceeding 4 stories above | ||||||
5 | grade, where occupants are primarily permanent.
| ||||||
6 | "Site energy index" means a scalar published by the | ||||||
7 | Pacific Northwest National Laboratories representing the ratio | ||||||
8 | of the site energy performance of an evaluated code compared | ||||||
9 | to the site energy performance of the 2006 International | ||||||
10 | Energy Conservation Code. A site energy index includes only | ||||||
11 | conservation measures and excludes net energy credit for any | ||||||
12 | on-site or off-site energy production. | ||||||
13 | (Source: P.A. 101-144, eff. 7-26-19 .) | ||||||
14 | (20 ILCS 3125/15)
| ||||||
15 | Sec. 15. Energy Efficient Building Code. The Board, in | ||||||
16 | consultation with the Department, shall adopt the Code as | ||||||
17 | minimum
requirements for commercial buildings, applying to the | ||||||
18 | construction of, renovations to, and additions to all | ||||||
19 | commercial buildings in the State. The Board, in consultation | ||||||
20 | with the Department, shall also adopt the Code as the minimum | ||||||
21 | and maximum requirements for residential buildings, applying | ||||||
22 | to the construction of , renovations to, and additions to all | ||||||
23 | residential buildings in the State, except as provided for in | ||||||
24 | Section 45 of this Act. The Board may
appropriately adapt the | ||||||
25 | International Energy Conservation Code to apply to the
|
| |||||||
| |||||||
1 | particular economy, population distribution, geography, and | ||||||
2 | climate of the
State and construction therein, consistent with | ||||||
3 | the public policy
objectives of this Act.
| ||||||
4 | (Source: P.A. 96-778, eff. 8-28-09.) | ||||||
5 | (20 ILCS 3125/20)
| ||||||
6 | Sec. 20. Applicability.
| ||||||
7 | (a) The Board shall review and adopt the Code within one | ||||||
8 | year after its publication. The Code shall take effect within | ||||||
9 | 6 months after it is adopted by the Board, except that, | ||||||
10 | beginning January 1, 2012, the Code adopted in 2012 shall take | ||||||
11 | effect on January 1, 2013. Except as otherwise provided in | ||||||
12 | this Act, the Code shall apply
to (i) any new building or | ||||||
13 | structure in this State for which a building permit
| ||||||
14 | application is received by a municipality or county and (ii) | ||||||
15 | beginning on the effective date of this amendatory Act of the | ||||||
16 | 100th General Assembly, each State facility specified in | ||||||
17 | Section 4.01 of the Capital Development Board Act.
In the case | ||||||
18 | of any addition, alteration, renovation, or repair to an | ||||||
19 | existing residential or commercial structure, the Code adopted | ||||||
20 | under this Act applies only to the portions of that structure | ||||||
21 | that are being added, altered, renovated, or repaired. The | ||||||
22 | changes made to this Section by this amendatory Act of the 97th | ||||||
23 | General Assembly shall in no way invalidate or otherwise | ||||||
24 | affect contracts entered into on or before the effective date | ||||||
25 | of this amendatory Act of the 97th General Assembly.
|
| |||||||
| |||||||
1 | (b) The following buildings shall be exempt from
the Code:
| ||||||
2 | (1) Buildings otherwise exempt from the provisions of | ||||||
3 | a locally adopted
building code and buildings that do not | ||||||
4 | contain a conditioned space.
| ||||||
5 | (2) Buildings that do not use either electricity or | ||||||
6 | fossil fuel for
comfort
conditioning. For purposes of | ||||||
7 | determining whether this exemption applies, a
building | ||||||
8 | will be presumed to be heated by electricity, even in the | ||||||
9 | absence of
equipment used for electric comfort heating, | ||||||
10 | whenever the building is provided
with electrical service | ||||||
11 | in excess of 100 amps, unless the code enforcement
| ||||||
12 | official determines that this electrical service is | ||||||
13 | necessary for purposes
other than providing electric | ||||||
14 | comfort heating.
| ||||||
15 | (3) Historic buildings. This exemption shall apply to | ||||||
16 | those buildings
that
are listed on the National Register | ||||||
17 | of Historic Places or the Illinois
Register of Historic | ||||||
18 | Places, and to those buildings that have been designated
| ||||||
19 | as historically significant by a local governing body that | ||||||
20 | is authorized to
make such designations.
| ||||||
21 | (4) (Blank). | ||||||
22 | (5) Other buildings specified as exempt by the | ||||||
23 | International Energy Conservation Code.
| ||||||
24 | (c) Additions, alterations, renovations, or repairs to an | ||||||
25 | existing building, building system, or portion thereof shall | ||||||
26 | conform to the provisions of the Code as they relate to new |
| |||||||
| |||||||
1 | construction without requiring the unaltered portion of the | ||||||
2 | existing building or building system to comply with the Code. | ||||||
3 | The following need not comply with the Code, provided that the | ||||||
4 | energy use of the building is not increased: (i) storm windows | ||||||
5 | installed over existing fenestration, (ii) glass-only | ||||||
6 | replacements in an existing sash and frame, (iii) existing | ||||||
7 | ceiling, wall, or floor cavities exposed during construction, | ||||||
8 | provided that these cavities are filled with insulation, and | ||||||
9 | (iv) construction where the existing roof, wall, or floor is | ||||||
10 | not exposed. | ||||||
11 | (d) A unit of local government that does not regulate | ||||||
12 | energy efficient building standards is not required to adopt, | ||||||
13 | enforce, or administer the Code; however, any energy efficient | ||||||
14 | building standards adopted by a unit of local government must | ||||||
15 | comply with this Act. If a unit of local government does not | ||||||
16 | regulate energy efficient building standards, any | ||||||
17 | construction, renovation, or addition to buildings or | ||||||
18 | structures is subject to the provisions contained in this Act. | ||||||
19 | (Source: P.A. 100-729, eff. 8-3-18.) | ||||||
20 | (20 ILCS 3125/30)
| ||||||
21 | Sec. 30. Enforcement. The
Board, in consultation with the | ||||||
22 | Department, shall
determine
procedures for compliance with the | ||||||
23 | Code. These procedures
may include but need not be
limited to | ||||||
24 | certification by a national, State, or local accredited energy
| ||||||
25 | conservation program or inspections from private |
| |||||||
| |||||||
1 | Code-certified inspectors
using the Code.
For purposes of the | ||||||
2 | Illinois Stretch Energy Code under Section 55 of this Act, the | ||||||
3 | Board shall allow and encourage, as an alternative compliance | ||||||
4 | mechanism, project certification by a nationally recognized | ||||||
5 | nonprofit certification organization specializing in | ||||||
6 | high-performance passive buildings and offering | ||||||
7 | climate-specific building energy standards that require equal | ||||||
8 | or better energy performance than the Illinois Stretch Energy | ||||||
9 | Code.
| ||||||
10 | (Source: P.A. 93-936, eff. 8-13-04.) | ||||||
11 | (20 ILCS 3125/45)
| ||||||
12 | Sec. 45. Home rule. | ||||||
13 | (a) (Blank)
No unit of local government, including any | ||||||
14 | home rule unit, may regulate energy efficient building | ||||||
15 | standards for commercial buildings in a manner that is less | ||||||
16 | stringent than the provisions contained in this Act .
| ||||||
17 | (b) No unit of local government, including any home rule | ||||||
18 | unit, may regulate energy efficient building standards for | ||||||
19 | residential or commercial buildings in a manner that is either | ||||||
20 | less or more stringent than the standards established pursuant | ||||||
21 | to this Act; provided, however, that the following entities | ||||||
22 | may regulate energy efficient building standards for | ||||||
23 | residential or commercial buildings in a manner that is more | ||||||
24 | stringent than the provisions contained in this Act: (i) a | ||||||
25 | unit of local government, including a home rule unit, that |
| |||||||
| |||||||
1 | has, on or before May 15, 2009, adopted or incorporated by | ||||||
2 | reference energy efficient building standards for residential | ||||||
3 | buildings that are equivalent to or more stringent than the | ||||||
4 | 2006 International Energy Conservation Code, (ii) a unit of | ||||||
5 | local government, including a home rule unit, that has, on or | ||||||
6 | before May 15, 2009, provided to the Capital Development | ||||||
7 | Board, as required by Section 10.18 of the Capital Development | ||||||
8 | Board Act, an identification of an energy efficient building | ||||||
9 | code or amendment that is equivalent to or more stringent than | ||||||
10 | the 2006 International Energy Conservation Code, (iii) a | ||||||
11 | municipality that has adopted the Illinois Stretch Energy | ||||||
12 | Code, and (iv) (iii) a municipality with a population of | ||||||
13 | 1,000,000 or more. | ||||||
14 | (c) No unit of local government, including any home rule | ||||||
15 | unit or unit of local government that is subject to State | ||||||
16 | regulation under the Code as provided in Section 15 of this | ||||||
17 | Act, may hereafter enact any annexation ordinance or | ||||||
18 | resolution, or require or enter into any annexation agreement, | ||||||
19 | that imposes energy efficient building standards for | ||||||
20 | residential or commercial buildings that are either less or | ||||||
21 | more stringent than the energy efficiency standards in effect, | ||||||
22 | at the time of construction, throughout the unit of local | ||||||
23 | government , except for the Illinois Stretch Energy Code . | ||||||
24 | (d) This Section is a denial
and limitation
of home rule | ||||||
25 | powers and functions under subsection (i) of Section 6
of | ||||||
26 | Article VII of the Illinois Constitution on the concurrent |
| |||||||
| |||||||
1 | exercise by home rule units of powers and functions exercised | ||||||
2 | by the State.
Nothing in this Section, however, prevents a | ||||||
3 | unit of local government from adopting an energy efficiency | ||||||
4 | code or standards for commercial buildings that are more | ||||||
5 | stringent than the Code under this Act.
| ||||||
6 | (Source: P.A. 99-639, eff. 7-28-16.) | ||||||
7 | (20 ILCS 3125/55 new) | ||||||
8 | Sec. 55. Illinois Stretch Energy Code. | ||||||
9 | (a) The Board, in consultation with the Department, shall | ||||||
10 | create and adopt the Illinois Stretch Energy Code, to allow | ||||||
11 | municipalities and projects authorized or funded by the Board | ||||||
12 | to achieve more energy efficiency in buildings than the | ||||||
13 | Illinois Energy Conservation Code through a consistent pathway | ||||||
14 | across the State. The Illinois Stretch Energy Code shall be | ||||||
15 | available for adoption by any municipality and shall set | ||||||
16 | minimum energy efficiency requirements, taking the place of | ||||||
17 | the Illinois Energy Conservation Code within any municipality | ||||||
18 | that adopts the Illinois Stretch Energy Code. | ||||||
19 | (b) The Illinois Stretch Energy Code shall have separate | ||||||
20 | components for commercial and residential buildings, which may | ||||||
21 | be adopted by the municipality jointly or separately. | ||||||
22 | (c) The Illinois Stretch Energy Code shall apply to all | ||||||
23 | projects to which an energy conservation code is applicable | ||||||
24 | that are authorized or funded in any part by the Board after | ||||||
25 | January 1, 2023. |
| |||||||
| |||||||
1 | (d) Development of the Illinois Stretch Energy Code shall | ||||||
2 | be completed and available for adoption by municipalities by | ||||||
3 | December 31, 2022. | ||||||
4 | (e) Consistent with the requirements under paragraph (2.5) | ||||||
5 | of subsection (g) of Section 8-103B of the Public Utilities | ||||||
6 | Act and under paragraph (2) of subsection (j) of Section | ||||||
7 | 8-104.1 of the Public Utilities Act, municipalities that adopt | ||||||
8 | the Illinois Stretch Energy Code may use utility programs to | ||||||
9 | support compliance with the Illinois Stretch Energy Code. The | ||||||
10 | amount of savings from such utility efforts that may be | ||||||
11 | counted toward achievement of their cumulative persisting | ||||||
12 | annual savings goals shall be based on reasonable estimates of | ||||||
13 | the increase in savings resulting from the utility efforts, | ||||||
14 | relative to reasonable approximations of what would have | ||||||
15 | occurred absent the utility involvement. | ||||||
16 | (f) The Illinois Stretch Energy Code's residential | ||||||
17 | components shall: | ||||||
18 | (1) apply to residential buildings as defined under | ||||||
19 | Section 10; | ||||||
20 | (2) set performance targets using a site energy index | ||||||
21 | with reductions relative to the 2006 International Energy | ||||||
22 | Conservation Code; and | ||||||
23 | (3) include stretch energy codes with site energy | ||||||
24 | index standards and adoption dates as follows: by no later | ||||||
25 | than December 31, 2022, the Board shall create and adopt a | ||||||
26 | stretch energy code with a site energy index no greater |
| |||||||
| |||||||
1 | than 0.50 of the 2006 International Energy Conservation | ||||||
2 | Code; by no later than December 31, 2025, the Board shall | ||||||
3 | create and adopt a stretch energy code with a site energy | ||||||
4 | index no greater than 0.40 of the 2006 International | ||||||
5 | Energy Conservation Code, unless the Board identifies | ||||||
6 | unanticipated burdens associated with the stretch energy | ||||||
7 | code adopted in 2022, in which case the Board may adopt a | ||||||
8 | stretch energy code with a site energy index no greater | ||||||
9 | than 0.42 of the 2006 International Energy Conservation | ||||||
10 | Code, provided that the more relaxed standard has a site | ||||||
11 | energy index that is at least 0.05 more restrictive than | ||||||
12 | the 2024 International Energy Conservation Code; by no | ||||||
13 | later than December 31, 2028, the Board shall create and | ||||||
14 | adopt a stretch energy code with a site energy index no | ||||||
15 | greater than 0.33 of the 2006 International Energy | ||||||
16 | Conservation Code, unless the Board identifies | ||||||
17 | unanticipated burdens associated with the stretch energy | ||||||
18 | code adopted in 2025, in which case the Board may adopt a | ||||||
19 | stretch energy code with a site energy index no greater | ||||||
20 | than 0.35 of the 2006 International Energy Conservation | ||||||
21 | Code, but only if that more relaxed standard has a site | ||||||
22 | energy index that is at least 0.05 more restrictive than | ||||||
23 | the 2027 International Energy Conservation Code; and by no | ||||||
24 | later than December 31, 2031, the Board shall create and | ||||||
25 | adopt a stretch energy code with a site energy index no | ||||||
26 | greater than 0.25 of the 2006 International Energy |
| |||||||
| |||||||
1 | Conservation Code. | ||||||
2 | (g) The Illinois Stretch Energy Code's commercial | ||||||
3 | components shall: | ||||||
4 | (1) apply to commercial buildings as defined under | ||||||
5 | Section 10; | ||||||
6 | (2) set performance targets using a site energy index | ||||||
7 | with reductions relative to the 2006 International Energy | ||||||
8 | Conservation Code; and | ||||||
9 | (3) include stretch energy codes with site energy | ||||||
10 | index standards and adoption dates as follows: by no later | ||||||
11 | than December 31, 2022, the Board shall create and adopt a | ||||||
12 | stretch energy code with a site energy index no greater | ||||||
13 | than 0.60 of the 2006 International Energy Conservation | ||||||
14 | Code; by no later than December 31, 2025, the Board shall | ||||||
15 | create and adopt a stretch energy code with a site energy | ||||||
16 | index no greater than 0.50 of the 2006 International | ||||||
17 | Energy Conservation Code; by no later than December 31, | ||||||
18 | 2028, the Board shall create and adopt a stretch energy | ||||||
19 | code with a site energy index no greater than 0.44 of the | ||||||
20 | 2006 International Energy Conservation Code; and by no | ||||||
21 | later than December 31, 2031, the Board shall create and | ||||||
22 | adopt a stretch energy code with a site energy index no | ||||||
23 | greater than 0.39 of the 2006 International Energy | ||||||
24 | Conservation Code. | ||||||
25 | (h) The process for the creation of the Illinois Stretch | ||||||
26 | Energy Code includes: |
| |||||||
| |||||||
1 | (1) within 60 days after the effective date of this | ||||||
2 | amendatory Act of the 102nd General Assembly, the Capital | ||||||
3 | Development Board shall establish an Illinois Stretch | ||||||
4 | Energy Code Task Force to advise and provide technical | ||||||
5 | assistance and recommendations to the Capital Development | ||||||
6 | Board for the Illinois Stretch Energy Code, which shall: | ||||||
7 | (A) advise the Capital Development Board on | ||||||
8 | creation of interim performance targets, code | ||||||
9 | requirements, and an implementation plan for the | ||||||
10 | Illinois Stretch Energy Code; | ||||||
11 | (B) recommend amendments to proposed rules issued | ||||||
12 | by the Capital Development Board; | ||||||
13 | (C) recommend complementary programs or policies; | ||||||
14 | (D) complete recommendations and development for | ||||||
15 | the Illinois Stretch Energy Code elements and | ||||||
16 | requirements by July 31, 2022; | ||||||
17 | (E) be composed of, but not limited to, | ||||||
18 | representatives, or their designees, from the | ||||||
19 | following entities: | ||||||
20 | (i) a representative from a group that | ||||||
21 | represents environmental justice; | ||||||
22 | (ii) a representative of a nonprofit or | ||||||
23 | professional association advocating for the | ||||||
24 | environment; | ||||||
25 | (iii) a representative of an organization | ||||||
26 | representing local governments in the metropolitan |
| |||||||
| |||||||
1 | Chicago region; | ||||||
2 | (iv) a representative of the City of Chicago; | ||||||
3 | (v) a representative of an organization | ||||||
4 | representing local governments outside the | ||||||
5 | metropolitan Chicago region; | ||||||
6 | (vi) a representative for the investor-owned | ||||||
7 | utilities of Illinois; | ||||||
8 | (vii) an energy-efficiency advocate with | ||||||
9 | technical expertise in single-family residential | ||||||
10 | buildings; | ||||||
11 | (viii) an energy-efficiency advocate with | ||||||
12 | technical expertise in commercial buildings; | ||||||
13 | (ix) an energy-efficiency advocate with | ||||||
14 | technical expertise in multifamily buildings, such | ||||||
15 | as an affordable housing developer; | ||||||
16 | (x) a representative from the architecture or | ||||||
17 | engineering industry; | ||||||
18 | (xi) a representative from a home builders | ||||||
19 | association; | ||||||
20 | (xii) a representative from the commercial | ||||||
21 | building industry; | ||||||
22 | (xiii) a representative of the enforcement | ||||||
23 | industry, such as a code official or energy rater; | ||||||
24 | (xiv) a representative of organized labor; and | ||||||
25 | (xv) other experts or organizations deemed | ||||||
26 | necessary by the Capital Development Board; and |
| |||||||
| |||||||
1 | (F) be co-chaired by: | ||||||
2 | (i) a representative of the environmental | ||||||
3 | community; | ||||||
4 | (ii) a representative of the environmental | ||||||
5 | justice community; and | ||||||
6 | (iii) a municipal representative. | ||||||
7 | (2) As part of its deliberations, the Illinois Stretch | ||||||
8 | Energy Code Task Force shall actively solicit input from | ||||||
9 | other energy code stakeholders and interested parties. | ||||||
10 | Section 90-15. The Illinois Power Agency Act is amended by | ||||||
11 | changing Sections 1-5, 1-10, 1-20, 1-56, and 1-75 as follows: | ||||||
12 | (20 ILCS 3855/1-5) | ||||||
13 | Sec. 1-5. Legislative declarations and findings. The | ||||||
14 | General Assembly finds and declares: | ||||||
15 | (1) The health, welfare, and prosperity of all | ||||||
16 | Illinois residents citizens require the provision of | ||||||
17 | adequate, reliable, affordable, efficient, and | ||||||
18 | environmentally sustainable electric service at the lowest | ||||||
19 | total cost over time, taking into account any benefits of | ||||||
20 | price stability. | ||||||
21 | (1.5) To provide the highest quality of life for the | ||||||
22 | residents of Illinois, and to provide for a clean and | ||||||
23 | healthy environment, it is the policy of this State to | ||||||
24 | rapidly transition to 100% renewable energy. |
| |||||||
| |||||||
1 | (2) (Blank). | ||||||
2 | (3) (Blank). | ||||||
3 | (4) It is necessary to improve the process of | ||||||
4 | procuring electricity to serve Illinois residents, to | ||||||
5 | promote investment in energy efficiency and | ||||||
6 | demand-response measures, and to maintain and support | ||||||
7 | development of clean coal technologies, generation | ||||||
8 | resources that operate at all hours of the day and under | ||||||
9 | all weather conditions, zero emission facilities, and | ||||||
10 | renewable resources. | ||||||
11 | (5) Procuring a diverse electricity supply portfolio | ||||||
12 | will ensure the lowest total cost over time for adequate, | ||||||
13 | reliable, efficient, and environmentally sustainable | ||||||
14 | electric service. | ||||||
15 | (6) Including renewable resources and zero emission | ||||||
16 | credits from zero emission facilities in that portfolio | ||||||
17 | will reduce long-term direct and indirect costs to | ||||||
18 | consumers by decreasing environmental impacts and by | ||||||
19 | avoiding or delaying the need for new generation, | ||||||
20 | transmission, and distribution infrastructure. Developing | ||||||
21 | new renewable energy resources in Illinois, including | ||||||
22 | brownfield solar projects and community solar projects, | ||||||
23 | will help to diversify Illinois electricity supply, avoid | ||||||
24 | and reduce pollution, reduce peak demand, and enhance | ||||||
25 | public health and well-being of Illinois residents. | ||||||
26 | (7) Developing community solar projects in Illinois |
| |||||||
| |||||||
1 | will help to expand access to renewable energy resources | ||||||
2 | to more Illinois residents. | ||||||
3 | (8) Developing brownfield solar projects in Illinois | ||||||
4 | will help return blighted or contaminated land to | ||||||
5 | productive use while enhancing public health and the | ||||||
6 | well-being of Illinois residents , including those in | ||||||
7 | environmental justice communities . | ||||||
8 | (9) Energy efficiency, demand-response measures, zero | ||||||
9 | emission energy, and renewable energy are resources | ||||||
10 | currently underused in Illinois. These resources should be | ||||||
11 | used, when cost effective, to reduce costs to consumers, | ||||||
12 | improve reliability, and improve environmental quality and | ||||||
13 | public health. | ||||||
14 | (10) The State should encourage the use of advanced | ||||||
15 | clean coal technologies that capture and sequester carbon | ||||||
16 | dioxide emissions to advance environmental protection | ||||||
17 | goals and to demonstrate the viability of coal and | ||||||
18 | coal-derived fuels in a carbon-constrained economy. | ||||||
19 | (11) The General Assembly enacted Public Act 96-0795 | ||||||
20 | to reform the State's purchasing processes, recognizing | ||||||
21 | that government procurement is susceptible to abuse if | ||||||
22 | structural and procedural safeguards are not in place to | ||||||
23 | ensure independence, insulation, oversight, and | ||||||
24 | transparency. | ||||||
25 | (12) The principles that underlie the procurement | ||||||
26 | reform legislation apply also in the context of power |
| |||||||
| |||||||
1 | purchasing. | ||||||
2 | (13) To ensure that the benefits of installing | ||||||
3 | renewable resources are available to all Illinois | ||||||
4 | residents and located across the State, subject to | ||||||
5 | appropriation, it is necessary for the Illinois Power | ||||||
6 | Agency to provide public information and educational | ||||||
7 | resources on how residents can benefit from the expansion | ||||||
8 | of renewable energy in Illinois and participate in the | ||||||
9 | Illinois Solar for All Program established in Section 1-56 | ||||||
10 | of this Act, the Adjustable Block Program established in | ||||||
11 | Section 1-75 of this Act, the job training programs | ||||||
12 | established by paragraph (1) of subsection (a) of Section | ||||||
13 | 16-108.12 of the Public Utilities Act, and the programs | ||||||
14 | and resources established by the Clean Jobs Workforce and | ||||||
15 | Contractor Equity Act. | ||||||
16 | The General Assembly therefore finds that it is necessary | ||||||
17 | to create the Illinois Power Agency and that the goals and | ||||||
18 | objectives of that Agency are to accomplish each of the | ||||||
19 | following: | ||||||
20 | (A) Develop electricity procurement plans to ensure | ||||||
21 | adequate, reliable, affordable, efficient, and | ||||||
22 | environmentally sustainable electric service at the lowest | ||||||
23 | total cost over time, taking into account any benefits of | ||||||
24 | price stability, for electric utilities that on December | ||||||
25 | 31, 2005 provided electric service to at least 100,000 | ||||||
26 | customers in Illinois and for small multi-jurisdictional |
| |||||||
| |||||||
1 | electric utilities that (i) on December 31, 2005 served | ||||||
2 | less than 100,000 customers in Illinois and (ii) request a | ||||||
3 | procurement plan for their Illinois jurisdictional load. | ||||||
4 | The procurement plan shall be updated on an annual basis | ||||||
5 | and shall include renewable energy resources and, | ||||||
6 | beginning with the delivery year commencing June 1, 2017, | ||||||
7 | zero emission credits from zero emission facilities | ||||||
8 | sufficient to achieve the standards specified in this Act. | ||||||
9 | (B) Conduct the competitive procurement processes | ||||||
10 | identified in this Act. | ||||||
11 | (C) Develop electric generation and co-generation | ||||||
12 | facilities that use indigenous coal or renewable | ||||||
13 | resources, or both, financed with bonds issued by the | ||||||
14 | Illinois Finance Authority. | ||||||
15 | (D) Supply electricity from the Agency's facilities at | ||||||
16 | cost to one or more of the following: municipal electric | ||||||
17 | systems, governmental aggregators, or rural electric | ||||||
18 | cooperatives in Illinois.
| ||||||
19 | (E) Ensure that the process of power procurement is | ||||||
20 | conducted in an ethical and transparent fashion, immune | ||||||
21 | from improper influence. | ||||||
22 | (F) Continue to review its policies and practices to | ||||||
23 | determine how best to meet its mission of providing the | ||||||
24 | lowest cost power to the greatest number of people, at any | ||||||
25 | given point in time, in accordance with applicable law. | ||||||
26 | (G) Operate in a structurally insulated, independent, |
| |||||||
| |||||||
1 | and transparent fashion so that nothing impedes the | ||||||
2 | Agency's mission to secure power at the best prices the | ||||||
3 | market will bear, provided that the Agency meets all | ||||||
4 | applicable legal requirements. | ||||||
5 | (H) Implement renewable energy procurement and | ||||||
6 | training programs throughout the State to diversify | ||||||
7 | Illinois electricity supply, improve reliability, avoid | ||||||
8 | and reduce pollution, reduce peak demand, and enhance | ||||||
9 | public health and well-being of Illinois residents, | ||||||
10 | including low-income residents. | ||||||
11 | (Source: P.A. 99-906, eff. 6-1-17 .)
| ||||||
12 | (20 ILCS 3855/1-10)
| ||||||
13 | Sec. 1-10. Definitions. | ||||||
14 | "Agency" means the Illinois Power Agency. | ||||||
15 | "Agency loan agreement" means any agreement pursuant to | ||||||
16 | which the Illinois Finance Authority agrees to loan the | ||||||
17 | proceeds of revenue bonds issued with respect to a project to | ||||||
18 | the Agency upon terms providing for loan repayment | ||||||
19 | installments at least sufficient to pay when due all principal | ||||||
20 | of, interest and premium, if any, on those revenue bonds, and | ||||||
21 | providing for maintenance, insurance, and other matters in | ||||||
22 | respect of the project. | ||||||
23 | "Authority" means the Illinois Finance Authority. | ||||||
24 | "Brownfield site photovoltaic project" means photovoltaics | ||||||
25 | that are: |
| |||||||
| |||||||
1 | (1) interconnected to an electric utility as defined | ||||||
2 | in this Section, a municipal utility as defined in this | ||||||
3 | Section, a public utility as defined in Section 3-105 of | ||||||
4 | the Public Utilities Act, or an electric cooperative, as | ||||||
5 | defined in Section 3-119 of the Public Utilities Act; and | ||||||
6 | (2) located at a site that is regulated by any of the | ||||||
7 | following entities under the following programs: | ||||||
8 | (A) the United States Environmental Protection | ||||||
9 | Agency under the federal Comprehensive Environmental | ||||||
10 | Response, Compensation, and Liability Act of 1980, as | ||||||
11 | amended; | ||||||
12 | (B) the United States Environmental Protection | ||||||
13 | Agency under the Corrective Action Program of the | ||||||
14 | federal Resource Conservation and Recovery Act, as | ||||||
15 | amended; | ||||||
16 | (C) the Illinois Environmental Protection Agency | ||||||
17 | under the Illinois Site Remediation Program; or | ||||||
18 | (D) the Illinois Environmental Protection Agency | ||||||
19 | under the Illinois Solid Waste Program. | ||||||
20 | "Clean coal facility" means an electric generating | ||||||
21 | facility that uses primarily coal as a feedstock and that | ||||||
22 | captures and sequesters carbon dioxide emissions at the | ||||||
23 | following levels: at least 50% of the total carbon dioxide | ||||||
24 | emissions that the facility would otherwise emit if, at the | ||||||
25 | time construction commences, the facility is scheduled to | ||||||
26 | commence operation before 2016, at least 70% of the total |
| |||||||
| |||||||
1 | carbon dioxide emissions that the facility would otherwise | ||||||
2 | emit if, at the time construction commences, the facility is | ||||||
3 | scheduled to commence operation during 2016 or 2017, and at | ||||||
4 | least 90% of the total carbon dioxide emissions that the | ||||||
5 | facility would otherwise emit if, at the time construction | ||||||
6 | commences, the facility is scheduled to commence operation | ||||||
7 | after 2017. The power block of the clean coal facility shall | ||||||
8 | not exceed allowable emission rates for sulfur dioxide, | ||||||
9 | nitrogen oxides, carbon monoxide, particulates and mercury for | ||||||
10 | a natural gas-fired combined-cycle facility the same size as | ||||||
11 | and in the same location as the clean coal facility at the time | ||||||
12 | the clean coal facility obtains an approved air permit. All | ||||||
13 | coal used by a clean coal facility shall have high volatile | ||||||
14 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
15 | million btu content, unless the clean coal facility does not | ||||||
16 | use gasification technology and was operating as a | ||||||
17 | conventional coal-fired electric generating facility on June | ||||||
18 | 1, 2009 (the effective date of Public Act 95-1027). | ||||||
19 | "Clean coal SNG brownfield facility" means a facility that | ||||||
20 | (1) has commenced construction by July 1, 2015 on an urban | ||||||
21 | brownfield site in a municipality with at least 1,000,000 | ||||||
22 | residents; (2) uses a gasification process to produce | ||||||
23 | substitute natural gas; (3) uses coal as at least 50% of the | ||||||
24 | total feedstock over the term of any sourcing agreement with a | ||||||
25 | utility and the remainder of the feedstock may be either | ||||||
26 | petroleum coke or coal, with all such coal having a high |
| |||||||
| |||||||
1 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
2 | million Btu content unless the facility reasonably determines
| ||||||
3 | that it is necessary to use additional petroleum coke to
| ||||||
4 | deliver additional consumer savings, in which case the
| ||||||
5 | facility shall use coal for at least 35% of the total
feedstock | ||||||
6 | over the term of any sourcing agreement; and (4) captures and | ||||||
7 | sequesters at least 85% of the total carbon dioxide emissions | ||||||
8 | that the facility would otherwise emit. | ||||||
9 | "Clean coal SNG facility" means a facility that uses a | ||||||
10 | gasification process to produce substitute natural gas, that | ||||||
11 | sequesters at least 90% of the total carbon dioxide emissions | ||||||
12 | that the facility would otherwise emit, that uses at least 90% | ||||||
13 | coal as a feedstock, with all such coal having a high | ||||||
14 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
15 | million btu content, and that has a valid and effective permit | ||||||
16 | to construct emission sources and air pollution control | ||||||
17 | equipment and approval with respect to the federal regulations | ||||||
18 | for Prevention of Significant Deterioration of Air Quality | ||||||
19 | (PSD) for the plant pursuant to the federal Clean Air Act; | ||||||
20 | provided, however, a clean coal SNG brownfield facility shall | ||||||
21 | not be a clean coal SNG facility. | ||||||
22 | "Commission" means the Illinois Commerce Commission. | ||||||
23 | "Community renewable generation project" means an electric | ||||||
24 | generating facility that: | ||||||
25 | (1) is powered by wind, solar thermal energy, | ||||||
26 | photovoltaic cells or panels, biodiesel, crops and |
| |||||||
| |||||||
1 | untreated and unadulterated organic waste biomass, tree | ||||||
2 | waste, and hydropower that does not involve new | ||||||
3 | construction or significant expansion of hydropower dams; | ||||||
4 | (2) is interconnected at the distribution system level | ||||||
5 | of an electric utility as defined in this Section, a | ||||||
6 | municipal utility as defined in this Section that owns or | ||||||
7 | operates electric distribution facilities, a public | ||||||
8 | utility as defined in Section 3-105 of the Public | ||||||
9 | Utilities Act, or an electric cooperative, as defined in | ||||||
10 | Section 3-119 of the Public Utilities Act; | ||||||
11 | (3) credits the value of electricity generated by the | ||||||
12 | facility to the subscribers of the facility; and | ||||||
13 | (4) is limited in nameplate capacity to less than or | ||||||
14 | equal to 5,000 2,000 kilowatts. | ||||||
15 | "Costs incurred in connection with the development and | ||||||
16 | construction of a facility" means: | ||||||
17 | (1) the cost of acquisition of all real property, | ||||||
18 | fixtures, and improvements in connection therewith and | ||||||
19 | equipment, personal property, and other property, rights, | ||||||
20 | and easements acquired that are deemed necessary for the | ||||||
21 | operation and maintenance of the facility; | ||||||
22 | (2) financing costs with respect to bonds, notes, and | ||||||
23 | other evidences of indebtedness of the Agency; | ||||||
24 | (3) all origination, commitment, utilization, | ||||||
25 | facility, placement, underwriting, syndication, credit | ||||||
26 | enhancement, and rating agency fees; |
| |||||||
| |||||||
1 | (4) engineering, design, procurement, consulting, | ||||||
2 | legal, accounting, title insurance, survey, appraisal, | ||||||
3 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
4 | interest rate swap, capitalized interest, contingency, as | ||||||
5 | required by lenders, and other financing costs, and other | ||||||
6 | expenses for professional services; and | ||||||
7 | (5) the costs of plans, specifications, site study and | ||||||
8 | investigation, installation, surveys, other Agency costs | ||||||
9 | and estimates of costs, and other expenses necessary or | ||||||
10 | incidental to determining the feasibility of any project, | ||||||
11 | together with such other expenses as may be necessary or | ||||||
12 | incidental to the financing, insuring, acquisition, and | ||||||
13 | construction of a specific project and starting up, | ||||||
14 | commissioning, and placing that project in operation. | ||||||
15 | "Delivery services" has the same definition as found in | ||||||
16 | Section 16-102 of the Public Utilities Act. | ||||||
17 | "Delivery year" means the consecutive 12-month period | ||||||
18 | beginning June 1 of a given year and ending May 31 of the | ||||||
19 | following year. | ||||||
20 | "Department" means the Department of Commerce and Economic | ||||||
21 | Opportunity. | ||||||
22 | "Director" means the Director of the Illinois Power | ||||||
23 | Agency. | ||||||
24 | "Demand-response" means measures that decrease peak | ||||||
25 | electricity demand or shift demand from peak to off-peak | ||||||
26 | periods. |
| |||||||
| |||||||
1 | "Distributed renewable energy generation device" means a | ||||||
2 | device that is: | ||||||
3 | (1) powered by wind, solar thermal energy, | ||||||
4 | photovoltaic cells or panels, biodiesel, crops and | ||||||
5 | untreated and unadulterated organic waste biomass, tree | ||||||
6 | waste, and hydropower that does not involve new | ||||||
7 | construction or significant expansion of hydropower dams; | ||||||
8 | (2) interconnected at the distribution system level of | ||||||
9 | either an electric utility as defined in this Section, a | ||||||
10 | municipal utility as defined in this Section that owns or | ||||||
11 | operates electric distribution facilities, or a rural | ||||||
12 | electric cooperative as defined in Section 3-119 of the | ||||||
13 | Public Utilities Act; | ||||||
14 | (3) located on the customer side of the customer's | ||||||
15 | electric meter and is primarily used to offset that | ||||||
16 | customer's electricity load; and | ||||||
17 | (4) limited in nameplate capacity to less than or | ||||||
18 | equal to 2,000 kilowatts. | ||||||
19 | "Energy efficiency" means measures that reduce the amount | ||||||
20 | of electricity or natural gas consumed in order to achieve a | ||||||
21 | given end use. "Energy efficiency" includes voltage | ||||||
22 | optimization measures that optimize the voltage at points on | ||||||
23 | the electric distribution voltage system and thereby reduce | ||||||
24 | electricity consumption by electric customers' end use | ||||||
25 | devices. "Energy efficiency" also includes measures that | ||||||
26 | reduce the total Btus of electricity, natural gas, and other |
| |||||||
| |||||||
1 | fuels needed to meet the end use or uses. | ||||||
2 | "Electric utility" has the same definition as found in | ||||||
3 | Section 16-102 of the Public Utilities Act. | ||||||
4 | "Facility" means an electric generating unit or a | ||||||
5 | co-generating unit that produces electricity along with | ||||||
6 | related equipment necessary to connect the facility to an | ||||||
7 | electric transmission or distribution system. | ||||||
8 | "Governmental aggregator" means one or more units of local | ||||||
9 | government that individually or collectively procure | ||||||
10 | electricity to serve residential retail electrical loads | ||||||
11 | located within its or their jurisdiction. | ||||||
12 | "Local government" means a unit of local government as | ||||||
13 | defined in Section 1 of Article VII of the Illinois | ||||||
14 | Constitution. | ||||||
15 | "Municipality" means a city, village, or incorporated | ||||||
16 | town. | ||||||
17 | "Municipal utility" means a public utility owned and | ||||||
18 | operated by any subdivision or municipal corporation of this | ||||||
19 | State. | ||||||
20 | "Nameplate capacity" means the aggregate inverter | ||||||
21 | nameplate capacity in kilowatts AC. | ||||||
22 | "Person" means any natural person, firm, partnership, | ||||||
23 | corporation, either domestic or foreign, company, association, | ||||||
24 | limited liability company, joint stock company, or association | ||||||
25 | and includes any trustee, receiver, assignee, or personal | ||||||
26 | representative thereof. |
| |||||||
| |||||||
1 | "Project" means the planning, bidding, and construction of | ||||||
2 | a facility. | ||||||
3 | "Public utility" has the same definition as found in | ||||||
4 | Section 3-105 of the Public Utilities Act. | ||||||
5 | "Real property" means any interest in land together with | ||||||
6 | all structures, fixtures, and improvements thereon, including | ||||||
7 | lands under water and riparian rights, any easements, | ||||||
8 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
9 | interests, together with any liens, judgments, mortgages, or | ||||||
10 | other claims or security interests related to real property. | ||||||
11 | "Renewable energy credit" means a tradable credit that | ||||||
12 | represents the environmental attributes of one megawatt hour | ||||||
13 | of energy produced from a renewable energy resource. | ||||||
14 | "Renewable energy resources" includes energy and its | ||||||
15 | associated renewable energy credit or renewable energy credits | ||||||
16 | from wind, solar thermal energy, photovoltaic cells and | ||||||
17 | panels, biodiesel, anaerobic digestion, crops and untreated | ||||||
18 | and unadulterated organic waste biomass, tree waste, and | ||||||
19 | hydropower that does not involve new construction or | ||||||
20 | significant expansion of hydropower dams. For purposes of this | ||||||
21 | Act, landfill gas produced in the State is considered a | ||||||
22 | renewable energy resource. "Renewable energy resources" does | ||||||
23 | not include the incineration or burning of tires, garbage, | ||||||
24 | general household, institutional, and commercial waste, | ||||||
25 | industrial lunchroom or office waste, landscape waste other | ||||||
26 | than tree waste , railroad crossties, utility poles, or |
| |||||||
| |||||||
1 | construction or demolition debris, other than untreated and | ||||||
2 | unadulterated waste wood. | ||||||
3 | "Retail customer" has the same definition as found in | ||||||
4 | Section 16-102 of the Public Utilities Act. | ||||||
5 | "Revenue bond" means any bond, note, or other evidence of | ||||||
6 | indebtedness issued by the Authority, the principal and | ||||||
7 | interest of which is payable solely from revenues or income | ||||||
8 | derived from any project or activity of the Agency. | ||||||
9 | "Sequester" means permanent storage of carbon dioxide by | ||||||
10 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
11 | or an oil reservoir, directly or through an enhanced oil | ||||||
12 | recovery process that may involve intermediate storage, | ||||||
13 | regardless of whether these activities are conducted by a | ||||||
14 | clean coal facility, a clean coal SNG facility, a clean coal | ||||||
15 | SNG brownfield facility, or a party with which a clean coal | ||||||
16 | facility, clean coal SNG facility, or clean coal SNG | ||||||
17 | brownfield facility has contracted for such purposes. | ||||||
18 | "Service area" has the same definition as found in Section | ||||||
19 | 16-102 of the Public Utilities Act. | ||||||
20 | "Sourcing agreement" means (i) in the case of an electric | ||||||
21 | utility, an agreement between the owner of a clean coal | ||||||
22 | facility and such electric utility, which agreement shall have | ||||||
23 | terms and conditions meeting the requirements of paragraph (3) | ||||||
24 | of subsection (d) of Section 1-75, (ii) in the case of an | ||||||
25 | alternative retail electric supplier, an agreement between the | ||||||
26 | owner of a clean coal facility and such alternative retail |
| |||||||
| |||||||
1 | electric supplier, which agreement shall have terms and | ||||||
2 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
3 | the Public Utilities Act, and (iii) in case of a gas utility, | ||||||
4 | an agreement between the owner of a clean coal SNG brownfield | ||||||
5 | facility and the gas utility, which agreement shall have the | ||||||
6 | terms and conditions meeting the requirements of subsection | ||||||
7 | (h-1) of Section 9-220 of the Public Utilities Act. | ||||||
8 | "Subscriber" means a person who (i) takes delivery service | ||||||
9 | from an electric utility, and (ii) has a subscription of no | ||||||
10 | less than 200 watts to a community renewable generation | ||||||
11 | project that is located in the electric utility's service | ||||||
12 | area. No subscriber's subscriptions may total more than 40% of | ||||||
13 | the nameplate capacity of an individual community renewable | ||||||
14 | generation project. Entities that are affiliated by virtue of | ||||||
15 | a common parent shall not represent multiple subscriptions | ||||||
16 | that total more than 40% of the nameplate capacity of an | ||||||
17 | individual community renewable generation project. | ||||||
18 | "Subscription" means an interest in a community renewable | ||||||
19 | generation project expressed in kilowatts, which is sized | ||||||
20 | primarily to offset part or all of the subscriber's | ||||||
21 | electricity usage. | ||||||
22 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
23 | by gasification of hydrocarbon feedstock, which is | ||||||
24 | substantially interchangeable in use and distribution with | ||||||
25 | conventional natural gas.
| ||||||
26 | "Total resource cost test" or "TRC test" means a standard |
| |||||||
| |||||||
1 | that is met if, for an investment in energy efficiency or | ||||||
2 | demand-response measures, the benefit-cost ratio is greater | ||||||
3 | than one. The benefit-cost ratio is the ratio of the net | ||||||
4 | present value of the total benefits of the program to the net | ||||||
5 | present value of the total costs as calculated over the | ||||||
6 | lifetime of the measures. A total resource cost test compares | ||||||
7 | the sum of avoided electric utility costs, representing the | ||||||
8 | benefits that accrue to the system and the participant in the | ||||||
9 | delivery of those efficiency measures and including avoided | ||||||
10 | costs associated with reduced use of natural gas or other | ||||||
11 | fuels, avoided costs associated with reduced water | ||||||
12 | consumption, and avoided costs associated with reduced | ||||||
13 | operation and maintenance costs, as well as other quantifiable | ||||||
14 | societal benefits, to the sum of all incremental costs of | ||||||
15 | end-use measures that are implemented due to the program | ||||||
16 | (including both utility and participant contributions), plus | ||||||
17 | costs to administer, deliver, and evaluate each demand-side | ||||||
18 | program, to quantify the net savings obtained by substituting | ||||||
19 | the demand-side program for supply resources. In calculating | ||||||
20 | avoided costs of power and energy that an electric utility | ||||||
21 | would otherwise have had to acquire, reasonable estimates | ||||||
22 | shall be included of financial costs likely to be imposed by | ||||||
23 | future regulations and legislation on emissions of greenhouse | ||||||
24 | gases. In discounting future societal costs and benefits for | ||||||
25 | the purpose of calculating net present values, a societal | ||||||
26 | discount rate based on actual, long-term Treasury bond yields |
| |||||||
| |||||||
1 | should be used. Notwithstanding anything to the contrary, the | ||||||
2 | TRC test shall not include or take into account a calculation | ||||||
3 | of market price suppression effects or demand reduction | ||||||
4 | induced price effects. | ||||||
5 | "Utility-scale solar project" means an electric generating | ||||||
6 | facility that: | ||||||
7 | (1) generates electricity using photovoltaic cells; | ||||||
8 | and | ||||||
9 | (2) has a nameplate capacity that is greater than | ||||||
10 | 2,000 kilowatts. | ||||||
11 | "Utility-scale wind project" means an electric generating | ||||||
12 | facility that: | ||||||
13 | (1) generates electricity using wind; and | ||||||
14 | (2) has a nameplate capacity that is greater than | ||||||
15 | 2,000 kilowatts. | ||||||
16 | "Zero emission credit" means a tradable credit that | ||||||
17 | represents the environmental attributes of one megawatt hour | ||||||
18 | of energy produced from a zero emission facility. | ||||||
19 | "Zero emission facility" means a facility that: (1) is | ||||||
20 | fueled by nuclear power; and (2) is interconnected with PJM | ||||||
21 | Interconnection, LLC or the Midcontinent Independent System | ||||||
22 | Operator, Inc., or their successors. | ||||||
23 | (Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17 .)
| ||||||
24 | (20 ILCS 3855/1-20) | ||||||
25 | Sec. 1-20. General powers and duties of the Agency. |
| |||||||
| |||||||
1 | (a) The Agency is authorized to do each of the following: | ||||||
2 | (1) Develop electricity procurement plans to ensure | ||||||
3 | adequate, reliable, affordable, efficient, and | ||||||
4 | environmentally sustainable electric service at the lowest | ||||||
5 | total cost over time, taking into account any benefits of | ||||||
6 | price stability, for electric utilities that on December | ||||||
7 | 31, 2005 provided electric service to at least 100,000 | ||||||
8 | customers in Illinois and for small multi-jurisdictional | ||||||
9 | electric utilities that (A) on December 31, 2005 served | ||||||
10 | less than 100,000 customers in Illinois and (B) request a | ||||||
11 | procurement plan for their Illinois jurisdictional load. | ||||||
12 | Except as provided in paragraph (1.5) of this subsection | ||||||
13 | (a), the electricity procurement plans shall be updated on | ||||||
14 | an annual basis and shall include electricity generated | ||||||
15 | from renewable resources sufficient to achieve the | ||||||
16 | standards specified in this Act. Beginning with the | ||||||
17 | delivery year commencing June 1, 2017, develop procurement | ||||||
18 | plans to include zero emission credits generated from zero | ||||||
19 | emission facilities sufficient to achieve the standards | ||||||
20 | specified in this Act. Beginning with the procurement for | ||||||
21 | the delivery year commencing June 1, 2022, the Agency | ||||||
22 | shall for each year develop a plan, as part of its | ||||||
23 | procurement plan, to conduct a procurement of capacity | ||||||
24 | from qualified resources needed to meet capacity | ||||||
25 | requirements of the retail customers of electric utilities | ||||||
26 | that serve more than 3,000,000 retail customers and are |
| |||||||
| |||||||
1 | located in the PJM Interconnection, subject to the open | ||||||
2 | access tariff and manuals of PJM Interconnection and | ||||||
3 | approved by the Federal Energy Regulatory Commission. The | ||||||
4 | capacity procurement plan shall be updated annually and | ||||||
5 | shall include electricity generated from renewable | ||||||
6 | resources sufficient to achieve the renewable portfolio | ||||||
7 | standards as specified in this Act. | ||||||
8 | (1.5) Develop a long-term renewable resources | ||||||
9 | procurement plan in accordance with subsection (c) of | ||||||
10 | Section 1-75 of this Act for renewable energy credits in | ||||||
11 | amounts sufficient to achieve the standards specified in | ||||||
12 | this Act for delivery years commencing June 1, 2017 and | ||||||
13 | for the programs and renewable energy credits specified in | ||||||
14 | Section 1-56 of this Act. Electricity procurement plans | ||||||
15 | for delivery years commencing after May 31, 2017, shall | ||||||
16 | not include procurement of renewable energy resources. | ||||||
17 | (2) Conduct competitive procurement processes to | ||||||
18 | procure the supply resources identified in the electricity | ||||||
19 | procurement plan, pursuant to Section 16-111.5 of the | ||||||
20 | Public Utilities Act, and, for the delivery year | ||||||
21 | commencing June 1, 2017, conduct procurement processes to | ||||||
22 | procure zero emission credits from zero emission | ||||||
23 | facilities, under subsection (d-5) of Section 1-75 of this | ||||||
24 | Act. | ||||||
25 | (2.5) Beginning with the procurement for the 2017 | ||||||
26 | delivery year, conduct competitive procurement processes |
| |||||||
| |||||||
1 | and implement programs to procure renewable energy credits | ||||||
2 | identified in the long-term renewable resources | ||||||
3 | procurement plan developed and approved under subsection | ||||||
4 | (c) of Section 1-75 of this Act and Section 16-111.5 of the | ||||||
5 | Public Utilities Act. | ||||||
6 | (3) Develop electric generation and co-generation | ||||||
7 | facilities that use indigenous coal or renewable | ||||||
8 | resources, or both, financed with bonds issued by the | ||||||
9 | Illinois Finance Authority. | ||||||
10 | (4) Supply electricity from the Agency's facilities at | ||||||
11 | cost to one or more of the following: municipal electric | ||||||
12 | systems, governmental aggregators, or rural electric | ||||||
13 | cooperatives in Illinois. | ||||||
14 | (b) Except as otherwise limited by this Act, the Agency | ||||||
15 | has all of the powers necessary or convenient to carry out the | ||||||
16 | purposes and provisions of this Act, including without | ||||||
17 | limitation, each of the following: | ||||||
18 | (1) To have a corporate seal, and to alter that seal at | ||||||
19 | pleasure, and to use it by causing it or a facsimile to be | ||||||
20 | affixed or impressed or reproduced in any other manner. | ||||||
21 | (2) To use the services of the Illinois Finance | ||||||
22 | Authority necessary to carry out the Agency's purposes. | ||||||
23 | (3) To negotiate and enter into loan agreements and | ||||||
24 | other agreements with the Illinois Finance Authority. | ||||||
25 | (4) To obtain and employ personnel and hire | ||||||
26 | consultants that are necessary to fulfill the Agency's |
| |||||||
| |||||||
1 | purposes, and to make expenditures for that purpose within | ||||||
2 | the appropriations for that purpose. | ||||||
3 | (5) To purchase, receive, take by grant, gift, devise, | ||||||
4 | bequest, or otherwise, lease, or otherwise acquire, own, | ||||||
5 | hold, improve, employ, use, and otherwise deal in and | ||||||
6 | with, real or personal property whether tangible or | ||||||
7 | intangible, or any interest therein, within the State. | ||||||
8 | (6) To acquire real or personal property, whether | ||||||
9 | tangible or intangible, including without limitation | ||||||
10 | property rights, interests in property, franchises, | ||||||
11 | obligations, contracts, and debt and equity securities, | ||||||
12 | and to do so by the exercise of the power of eminent domain | ||||||
13 | in accordance with Section 1-21; except that any real | ||||||
14 | property acquired by the exercise of the power of eminent | ||||||
15 | domain must be located within the State. | ||||||
16 | (7) To sell, convey, lease, exchange, transfer, | ||||||
17 | abandon, or otherwise dispose of, or mortgage, pledge, or | ||||||
18 | create a security interest in, any of its assets, | ||||||
19 | properties, or any interest therein, wherever situated. | ||||||
20 | (8) To purchase, take, receive, subscribe for, or | ||||||
21 | otherwise acquire, hold, make a tender offer for, vote, | ||||||
22 | employ, sell, lend, lease, exchange, transfer, or | ||||||
23 | otherwise dispose of, mortgage, pledge, or grant a | ||||||
24 | security interest in, use, and otherwise deal in and with, | ||||||
25 | bonds and other obligations, shares, or other securities | ||||||
26 | (or interests therein) issued by others, whether engaged |
| |||||||
| |||||||
1 | in a similar or different business or activity. | ||||||
2 | (9) To make and execute agreements, contracts, and | ||||||
3 | other instruments necessary or convenient in the exercise | ||||||
4 | of the powers and functions of the Agency under this Act, | ||||||
5 | including contracts with any person, including personal | ||||||
6 | service contracts, or with any local government, State | ||||||
7 | agency, or other entity; and all State agencies and all | ||||||
8 | local governments are authorized to enter into and do all | ||||||
9 | things necessary to perform any such agreement, contract, | ||||||
10 | or other instrument with the Agency. No such agreement, | ||||||
11 | contract, or other instrument shall exceed 40 years. | ||||||
12 | (10) To lend money, invest and reinvest its funds in | ||||||
13 | accordance with the Public Funds Investment Act, and take | ||||||
14 | and hold real and personal property as security for the | ||||||
15 | payment of funds loaned or invested. | ||||||
16 | (11) To borrow money at such rate or rates of interest | ||||||
17 | as the Agency may determine, issue its notes, bonds, or | ||||||
18 | other obligations to evidence that indebtedness, and | ||||||
19 | secure any of its obligations by mortgage or pledge of its | ||||||
20 | real or personal property, machinery, equipment, | ||||||
21 | structures, fixtures, inventories, revenues, grants, and | ||||||
22 | other funds as provided or any interest therein, wherever | ||||||
23 | situated. | ||||||
24 | (12) To enter into agreements with the Illinois | ||||||
25 | Finance Authority to issue bonds whether or not the income | ||||||
26 | therefrom is exempt from federal taxation. |
| |||||||
| |||||||
1 | (13) To procure insurance against any loss in | ||||||
2 | connection with its properties or operations in such | ||||||
3 | amount or amounts and from such insurers, including the | ||||||
4 | federal government, as it may deem necessary or desirable, | ||||||
5 | and to pay any premiums therefor. | ||||||
6 | (14) To negotiate and enter into agreements with | ||||||
7 | trustees or receivers appointed by United States | ||||||
8 | bankruptcy courts or federal district courts or in other | ||||||
9 | proceedings involving adjustment of debts and authorize | ||||||
10 | proceedings involving adjustment of debts and authorize | ||||||
11 | legal counsel for the Agency to appear in any such | ||||||
12 | proceedings. | ||||||
13 | (15) To file a petition under Chapter 9 of Title 11 of | ||||||
14 | the United States Bankruptcy Code or take other similar | ||||||
15 | action for the adjustment of its debts. | ||||||
16 | (16) To enter into management agreements for the | ||||||
17 | operation of any of the property or facilities owned by | ||||||
18 | the Agency. | ||||||
19 | (17) To enter into an agreement to transfer and to | ||||||
20 | transfer any land, facilities, fixtures, or equipment of | ||||||
21 | the Agency to one or more municipal electric systems, | ||||||
22 | governmental aggregators, or rural electric agencies or | ||||||
23 | cooperatives, for such consideration and upon such terms | ||||||
24 | as the Agency may determine to be in the best interest of | ||||||
25 | the residents citizens of Illinois. | ||||||
26 | (18) To enter upon any lands and within any building |
| |||||||
| |||||||
1 | whenever in its judgment it may be necessary for the | ||||||
2 | purpose of making surveys and examinations to accomplish | ||||||
3 | any purpose authorized by this Act. | ||||||
4 | (19) To maintain an office or offices at such place or | ||||||
5 | places in the State as it may determine. | ||||||
6 | (20) To request information, and to make any inquiry, | ||||||
7 | investigation, survey, or study that the Agency may deem | ||||||
8 | necessary to enable it effectively to carry out the | ||||||
9 | provisions of this Act. | ||||||
10 | (21) To accept and expend appropriations. | ||||||
11 | (22) To engage in any activity or operation that is | ||||||
12 | incidental to and in furtherance of efficient operation to | ||||||
13 | accomplish the Agency's purposes, including hiring | ||||||
14 | employees that the Director deems essential for the | ||||||
15 | operations of the Agency. | ||||||
16 | (23) To adopt, revise, amend, and repeal rules with | ||||||
17 | respect to its operations, properties, and facilities as | ||||||
18 | may be necessary or convenient to carry out the purposes | ||||||
19 | of this Act, subject to the provisions of the Illinois | ||||||
20 | Administrative Procedure Act and Sections 1-22 and 1-35 of | ||||||
21 | this Act. | ||||||
22 | (24) To establish and collect charges and fees as | ||||||
23 | described in this Act.
| ||||||
24 | (25) To conduct competitive gasification feedstock | ||||||
25 | procurement processes to procure the feedstocks for the | ||||||
26 | clean coal SNG brownfield facility in accordance with the |
| |||||||
| |||||||
1 | requirements of Section 1-78 of this Act. | ||||||
2 | (26) To review, revise, and approve sourcing | ||||||
3 | agreements and mediate and resolve disputes between gas | ||||||
4 | utilities and the clean coal SNG brownfield facility | ||||||
5 | pursuant to subsection (h-1) of Section 9-220 of the | ||||||
6 | Public Utilities Act. | ||||||
7 | (27) To request, review and accept proposals, execute | ||||||
8 | contracts, purchase renewable energy credits and otherwise | ||||||
9 | dedicate funds from the Illinois Power Agency Renewable | ||||||
10 | Energy Resources Fund to create and carry out the | ||||||
11 | objectives of the Illinois Solar for All program in | ||||||
12 | accordance with Section 1-56 of this Act. | ||||||
13 | (c) In conducting the procurement of electricity, | ||||||
14 | capacity, or other products, the Agency shall not procure any | ||||||
15 | products or services from persons or organizations that are in | ||||||
16 | violation of the Displaced Energy Workers Bill of Rights, as | ||||||
17 | provided under the Energy Community Reinvestment Act, at the | ||||||
18 | time of the procurement event. | ||||||
19 | (Source: P.A. 99-906, eff. 6-1-17 .) | ||||||
20 | (20 ILCS 3855/1-56) | ||||||
21 | Sec. 1-56. Illinois Power Agency Renewable Energy | ||||||
22 | Resources Fund; Illinois Solar for All Program. | ||||||
23 | (a) The Illinois Power Agency Renewable Energy Resources | ||||||
24 | Fund is created as a special fund in the State treasury. | ||||||
25 | (b) The Illinois Power Agency Renewable Energy Resources |
| |||||||
| |||||||
1 | Fund shall be administered by the Agency as described in this | ||||||
2 | subsection (b), provided that the changes to this subsection | ||||||
3 | (b) made by this amendatory Act of the 99th General Assembly | ||||||
4 | shall not interfere with existing contracts under this | ||||||
5 | Section. | ||||||
6 | (1) The Illinois Power Agency Renewable Energy | ||||||
7 | Resources Fund shall be used to purchase renewable energy | ||||||
8 | credits according to any approved procurement plan | ||||||
9 | developed by the Agency prior to June 1, 2017. | ||||||
10 | (2) The Illinois Power Agency Renewable Energy | ||||||
11 | Resources Fund shall also be used to create the Illinois | ||||||
12 | Solar for All Program, which shall include incentives for | ||||||
13 | low-income distributed generation and community solar | ||||||
14 | projects, and other associated approved expenditures. The | ||||||
15 | objectives of the Illinois Solar for All Program are to | ||||||
16 | bring photovoltaics to low-income communities in this | ||||||
17 | State in a manner that maximizes the development of new | ||||||
18 | photovoltaic generating facilities, to create a long-term, | ||||||
19 | low-income solar marketplace throughout this State, to | ||||||
20 | integrate, through interaction with stakeholders, with | ||||||
21 | existing energy efficiency initiatives, and to minimize | ||||||
22 | administrative costs. The Agency shall strive to ensure | ||||||
23 | that renewable energy credits procured through the | ||||||
24 | Illinois Solar for All Program and each of its subprograms | ||||||
25 | are purchased from projects across the breadth of | ||||||
26 | low-income and environmental justice communities in |
| |||||||
| |||||||
1 | Illinois, including both urban and rural communities, and | ||||||
2 | are neither concentrated in a few communities nor | ||||||
3 | excluding particular low-income or environmental justice | ||||||
4 | communities. The Agency shall include a description of its | ||||||
5 | proposed approach to the design, administration, | ||||||
6 | implementation and evaluation of the Illinois Solar for | ||||||
7 | All Program, as part of the long-term renewable resources | ||||||
8 | procurement plan authorized by subsection (c) of Section | ||||||
9 | 1-75 of this Act, and the program shall be designed to grow | ||||||
10 | the low-income solar market. The Agency or utility, as | ||||||
11 | applicable, shall purchase renewable energy credits from | ||||||
12 | the (i) photovoltaic distributed renewable energy | ||||||
13 | generation projects and (ii) community solar projects that | ||||||
14 | are procured under procurement processes authorized by the | ||||||
15 | long-term renewable resources procurement plans approved | ||||||
16 | by the Commission. | ||||||
17 | The Illinois Solar for All Program shall include the | ||||||
18 | program offerings described in subparagraphs (A) through | ||||||
19 | (E) (D) of this paragraph (2), which the Agency shall | ||||||
20 | implement through contracts with third-party providers | ||||||
21 | and, subject to appropriation, pay the approximate amounts | ||||||
22 | identified using monies available in the Illinois Power | ||||||
23 | Agency Renewable Energy Resources Fund. Each contract that | ||||||
24 | provides for the installation of solar facilities shall | ||||||
25 | provide that the solar facilities will produce energy and | ||||||
26 | economic benefits, at a level determined by the Agency to |
| |||||||
| |||||||
1 | be reasonable, for the participating low income customers. | ||||||
2 | The monies available in the Illinois Power Agency | ||||||
3 | Renewable Energy Resources Fund and not otherwise | ||||||
4 | committed to contracts executed under subsection (i) of | ||||||
5 | this Section shall be allocated among the programs | ||||||
6 | described in this paragraph (2), as follows: 22.5% of | ||||||
7 | these funds shall be allocated to programs described in | ||||||
8 | subparagraphs subparagraph (A) and (E) of this paragraph | ||||||
9 | (2), 37.5% of these funds shall be allocated to programs | ||||||
10 | described in subparagraph (B) of this paragraph (2), 15% | ||||||
11 | of these funds shall be allocated to programs described in | ||||||
12 | subparagraph (C) of this paragraph (2), and 25% of these | ||||||
13 | funds, but in no event more than $50,000,000, shall be | ||||||
14 | allocated to programs described in subparagraph (D) of | ||||||
15 | this paragraph (2). The allocation of funds among | ||||||
16 | subparagraphs (A), (B), or (C) , and (E) of this paragraph | ||||||
17 | (2) may be changed if the Agency or administrator, through | ||||||
18 | delegated authority, determines incentives in subparagraph | ||||||
19 | subparagraphs (A), (B), or (C) , or (E) of this paragraph | ||||||
20 | (2) have not been adequately subscribed to fully utilize | ||||||
21 | the Illinois Power Agency Renewable Energy Resources Fund. | ||||||
22 | The determination of reallocation shall include | ||||||
23 | consideration of input obtained input through a | ||||||
24 | stakeholder process. The program offerings described in | ||||||
25 | subparagraphs (A) through (E) (D) of this paragraph (2) | ||||||
26 | shall also be implemented through contracts funded from |
| |||||||
| |||||||
1 | such additional amounts as are allocated to one or more of | ||||||
2 | the programs in the long-term renewable resources | ||||||
3 | procurement plans as specified in subsection (c) of | ||||||
4 | Section 1-75 of this Act and subparagraph (O) of paragraph | ||||||
5 | (1) of such subsection (c). | ||||||
6 | Contracts that will be paid with funds in the Illinois | ||||||
7 | Power Agency Renewable Energy Resources Fund shall be | ||||||
8 | executed by the Agency. Contracts that will be paid with | ||||||
9 | funds collected by an electric utility shall be executed | ||||||
10 | by the electric utility. | ||||||
11 | Contracts under the Illinois Solar for All Program | ||||||
12 | shall include an approach, as set forth in the long-term | ||||||
13 | renewable resources procurement plans, to ensure the | ||||||
14 | wholesale market value of the energy is credited to | ||||||
15 | participating low-income customers or organizations and to | ||||||
16 | ensure tangible economic benefits flow directly to program | ||||||
17 | participants, except in the case of low-income | ||||||
18 | multi-family housing where the low-income customer does | ||||||
19 | not directly pay for energy. Priority shall be given to | ||||||
20 | projects that demonstrate meaningful involvement of | ||||||
21 | low-income community members in designing the initial | ||||||
22 | proposals. Acceptable proposals to implement projects must | ||||||
23 | demonstrate the applicant's ability to conduct initial | ||||||
24 | community outreach, education, and recruitment of | ||||||
25 | low-income participants in the community. Projects must | ||||||
26 | include job training opportunities if available, and shall |
| |||||||
| |||||||
1 | endeavor to coordinate with the job training programs | ||||||
2 | described in paragraph (1) of subsection (a) of Section | ||||||
3 | 16-108.12 of the Public Utilities Act. | ||||||
4 | The Agency shall make every effort to ensure that | ||||||
5 | small and emerging businesses, particularly those located | ||||||
6 | in low-income and environmental justice communities are | ||||||
7 | able to participate in the Illinois Solar for All Program. | ||||||
8 | These efforts may include, but shall not be limited to, | ||||||
9 | proactive support from the program administrator, | ||||||
10 | different or preferred access to subprograms and | ||||||
11 | administrator-identified customers or grassroots | ||||||
12 | education provider-identified customers, and different | ||||||
13 | incentive levels. The Agency shall report on progress and | ||||||
14 | barriers to participation of small and emerging businesses | ||||||
15 | in the Illinois Solar for All Program at least once a year. | ||||||
16 | The report shall be made available on the Agency's website | ||||||
17 | and, in years when the Agency is updating its long-term | ||||||
18 | renewable resources procurement plan, included in that | ||||||
19 | plan. | ||||||
20 | (A) Low-income single-family and small multifamily | ||||||
21 | solar distributed generation incentive. This program | ||||||
22 | will provide incentives to low-income customers, | ||||||
23 | either directly or through solar providers, to | ||||||
24 | increase the participation of low-income households in | ||||||
25 | photovoltaic on-site distributed generation at | ||||||
26 | residential buildings containing one to 4 units . |
| |||||||
| |||||||
1 | Companies participating in this program that install | ||||||
2 | solar panels shall commit to hiring job trainees for a | ||||||
3 | portion of their low-income installations, and an | ||||||
4 | administrator shall facilitate partnering the | ||||||
5 | companies that install solar panels with entities that | ||||||
6 | provide solar panel installation job training. It is a | ||||||
7 | goal of this program that a minimum of 25% of the | ||||||
8 | incentives for this program be allocated to projects | ||||||
9 | located within environmental justice communities. The | ||||||
10 | Agency shall reserve a portion of this program for | ||||||
11 | projects that promote energy sovereignty through | ||||||
12 | ownership of projects by low-income households, | ||||||
13 | not-for-profit organizations providing services to | ||||||
14 | low-income households, affordable housing owners, or | ||||||
15 | community-based limited liability companies providing | ||||||
16 | services to low-income households. To count as | ||||||
17 | promoting energy sovereignty, 49% of the ownership | ||||||
18 | interest of the project must be held by low-income | ||||||
19 | households, not-for-profit organizations providing | ||||||
20 | direct services to low-income households, affordable | ||||||
21 | housing owners, or community-based limited liability | ||||||
22 | companies providing services to low-income households, | ||||||
23 | by no later than 6 years after the device is | ||||||
24 | interconnected at the distribution system level of the | ||||||
25 | utility and energized. Incentives for projects that | ||||||
26 | promote energy sovereignty may be higher than |
| |||||||
| |||||||
1 | incentives for equivalent projects that do not promote | ||||||
2 | energy sovereignty under this same program. Contracts | ||||||
3 | entered into under this paragraph may be entered into | ||||||
4 | with an entity that will develop and administer the | ||||||
5 | program and shall also include contracts for renewable | ||||||
6 | energy credits from the photovoltaic distributed | ||||||
7 | generation that is the subject of the program, as set | ||||||
8 | forth in the long-term renewable resources procurement | ||||||
9 | plan. | ||||||
10 | (B) Low-Income Community Solar Project Initiative. | ||||||
11 | Incentives shall be offered to low-income customers, | ||||||
12 | either directly or through developers, to increase the | ||||||
13 | participation of low-income subscribers of community | ||||||
14 | solar projects. The developer of each project shall | ||||||
15 | identify its partnership with community stakeholders | ||||||
16 | regarding the location, development, and participation | ||||||
17 | in the project, provided that nothing shall preclude a | ||||||
18 | project from including an anchor tenant that does not | ||||||
19 | qualify as low-income . Incentives should also be | ||||||
20 | offered to community solar projects that are 100% | ||||||
21 | low-income subscriber owned, which includes low-income | ||||||
22 | households, not-for-profit organizations, and | ||||||
23 | affordable housing owners . Companies participating in | ||||||
24 | this program that develop or install solar projects | ||||||
25 | shall commit to hiring job trainees for a portion of | ||||||
26 | their low-income installations, and an administrator |
| |||||||
| |||||||
1 | shall facilitate partnering the companies that install | ||||||
2 | solar projects with entities that provide solar | ||||||
3 | installation and related job training. It is a goal of | ||||||
4 | this program that a minimum of 25% of the incentives | ||||||
5 | for this program be allocated to community | ||||||
6 | photovoltaic projects in environmental justice | ||||||
7 | communities. The Agency shall reserve a portion of | ||||||
8 | this program for projects that promote energy | ||||||
9 | sovereignty through ownership of projects by | ||||||
10 | low-income households, not-for-profit organizations | ||||||
11 | providing services to low-income households, | ||||||
12 | affordable housing owners, or community-based limited | ||||||
13 | liability companies providing services to low-income | ||||||
14 | households. To count as promoting energy sovereignty, | ||||||
15 | 49% of the ownership interest of the project must be | ||||||
16 | held by low-income subscribers, not-for-profit | ||||||
17 | organizations providing direct services to low-income | ||||||
18 | households, affordable housing owners, or | ||||||
19 | community-based limited liability companies providing | ||||||
20 | services to low-income households, by no later than 6 | ||||||
21 | years after the device is interconnected at the | ||||||
22 | distribution system level of the utility and | ||||||
23 | energized. Incentives for projects that promote energy | ||||||
24 | sovereignty may be higher than incentives for | ||||||
25 | equivalent projects that do not promote energy | ||||||
26 | sovereignty under this same program. Contracts entered |
| |||||||
| |||||||
1 | into under this paragraph may be entered into with | ||||||
2 | developers and shall also include contracts for | ||||||
3 | renewable energy credits related to the program. | ||||||
4 | (C) Incentives for non-profits and public | ||||||
5 | facilities. Under this program funds shall be used to | ||||||
6 | support on-site photovoltaic distributed renewable | ||||||
7 | energy generation devices to serve the load associated | ||||||
8 | with not-for-profit customers and to support | ||||||
9 | photovoltaic distributed renewable energy generation | ||||||
10 | that uses photovoltaic technology to serve the load | ||||||
11 | associated with public sector customers taking service | ||||||
12 | at public buildings. Companies participating in this | ||||||
13 | program that develop or install solar projects shall | ||||||
14 | commit to hiring job trainees for a portion of their | ||||||
15 | low-income installations, and an administrator shall | ||||||
16 | facilitate partnering the companies that install solar | ||||||
17 | projects with entities that provide solar installation | ||||||
18 | and related job training. It is a goal of this program | ||||||
19 | that at least 25% of the incentives for this program be | ||||||
20 | allocated to projects located in environmental justice | ||||||
21 | communities. Contracts entered into under this | ||||||
22 | paragraph may be entered into with an entity that will | ||||||
23 | develop and administer the program or with developers | ||||||
24 | and shall also include contracts for renewable energy | ||||||
25 | credits related to the program. | ||||||
26 | (D) Low-Income Community Solar Pilot Projects. |
| |||||||
| |||||||
1 | Under this program, persons, including, but not | ||||||
2 | limited to, electric utilities, shall propose pilot | ||||||
3 | community solar projects. Community solar projects | ||||||
4 | proposed under this subparagraph (D) may exceed 2,000 | ||||||
5 | kilowatts in nameplate capacity, but the amount paid | ||||||
6 | per project under this program may not exceed | ||||||
7 | $20,000,000. Pilot projects must result in economic | ||||||
8 | benefits for the members of the community in which the | ||||||
9 | project will be located. The proposed pilot project | ||||||
10 | must include a partnership with at least one | ||||||
11 | community-based organization. Approved pilot projects | ||||||
12 | shall be competitively bid by the Agency, subject to | ||||||
13 | fair and equitable guidelines developed by the Agency. | ||||||
14 | Funding available under this subparagraph (D) may not | ||||||
15 | be distributed solely to a utility, and at least some | ||||||
16 | funds under this subparagraph (D) must include a | ||||||
17 | project partnership that includes community ownership | ||||||
18 | by the project subscribers. Contracts entered into | ||||||
19 | under this paragraph may be entered into with an | ||||||
20 | entity that will develop and administer the program or | ||||||
21 | with developers and shall also include contracts for | ||||||
22 | renewable energy credits related to the program. A | ||||||
23 | project proposed by a utility that is implemented | ||||||
24 | under this subparagraph (D) shall not be included in | ||||||
25 | the utility's rate base ratebase . | ||||||
26 | (E) Low-income large multifamily solar incentive. |
| |||||||
| |||||||
1 | This program shall provide incentives to low-income | ||||||
2 | customers, either directly or through solar providers, | ||||||
3 | to increase the participation of low-income households | ||||||
4 | in photovoltaic on-site distributed generation at | ||||||
5 | residential buildings with 5 or more units. Companies | ||||||
6 | participating in this program that develop or install | ||||||
7 | solar projects shall commit to hiring job trainees for | ||||||
8 | a portion of their low-income installations, and an | ||||||
9 | administrator shall facilitate partnering the | ||||||
10 | companies that install solar projects with entities | ||||||
11 | that provide solar installation and related job | ||||||
12 | training. It is a goal of this program that a minimum | ||||||
13 | of 25% of the incentives for this program be allocated | ||||||
14 | to projects located within environmental justice | ||||||
15 | communities. The Agency shall reserve a portion of | ||||||
16 | this program for projects that promote energy | ||||||
17 | sovereignty through ownership of projects by | ||||||
18 | low-income households, not-for-profit organizations | ||||||
19 | providing services to low-income households, | ||||||
20 | affordable housing owners, or community-based limited | ||||||
21 | liability companies providing services to low-income | ||||||
22 | households. To count as promoting energy sovereignty, | ||||||
23 | 49% of the ownership interest of the project must be | ||||||
24 | held by low-income households, not-for-profit | ||||||
25 | organizations providing direct services to low-income | ||||||
26 | households, affordable housing owners, or |
| |||||||
| |||||||
1 | community-based limited liability companies providing | ||||||
2 | services to low-income households, by no later than 6 | ||||||
3 | years after the device is interconnected at the | ||||||
4 | distribution system level of the utility and | ||||||
5 | energized. Incentives for projects that promote energy | ||||||
6 | sovereignty may be higher than incentives for | ||||||
7 | equivalent projects that do not promote energy | ||||||
8 | sovereignty under this same program. Contracts entered | ||||||
9 | into under this paragraph may be entered into with an | ||||||
10 | entity that will develop and administer the program | ||||||
11 | and shall include contracts for renewable energy | ||||||
12 | credits from the photovoltaic distributed generation | ||||||
13 | that is the subject of the program, as set forth in the | ||||||
14 | long-term renewable resources procurement plan. | ||||||
15 | The requirement that a qualified person, as defined in | ||||||
16 | paragraph (1) of subsection (i) of this Section, install | ||||||
17 | photovoltaic devices does not apply to the Illinois Solar | ||||||
18 | for All Program described in this subsection (b). | ||||||
19 | (3) Costs associated with the Illinois Solar for All | ||||||
20 | Program and its components described in paragraph (2) of | ||||||
21 | this subsection (b), including, but not limited to, costs | ||||||
22 | associated with procuring experts, consultants, and the | ||||||
23 | program administrator referenced in this subsection (b) | ||||||
24 | and related incremental costs, costs related to income | ||||||
25 | verification and facilitating customer participation in | ||||||
26 | the program, and costs related to the evaluation of the |
| |||||||
| |||||||
1 | Illinois Solar for All Program, may be paid for using | ||||||
2 | monies in the Illinois Power Agency Renewable Energy | ||||||
3 | Resources Fund, but the Agency or program administrator | ||||||
4 | shall strive to minimize costs in the implementation of | ||||||
5 | the program. The Agency shall purchase renewable energy | ||||||
6 | credits from generation that is the subject of a contract | ||||||
7 | under subparagraphs (A) through (E) (D) of this paragraph | ||||||
8 | (2) of this subsection (b), and may pay for such renewable | ||||||
9 | energy credits through an upfront payment per installed | ||||||
10 | kilowatt of nameplate capacity paid once the device is | ||||||
11 | interconnected at the distribution system level of the | ||||||
12 | utility and is energized. The payment shall be in exchange | ||||||
13 | for an assignment of all renewable energy credits | ||||||
14 | generated by the system during the first 15 years of | ||||||
15 | operation and shall be structured to overcome barriers to | ||||||
16 | participation in the solar market by the low-income | ||||||
17 | community. The incentives provided for in this Section may | ||||||
18 | be implemented through the pricing of renewable energy | ||||||
19 | credits where the prices paid for the credits are higher | ||||||
20 | than the prices from programs offered under subsection (c) | ||||||
21 | of Section 1-75 of this Act to account for the incentives. | ||||||
22 | The Agency shall ensure collaboration with community | ||||||
23 | agencies, and allocate up to 5% of the funds available | ||||||
24 | under the Illinois Solar for All Program to | ||||||
25 | community-based groups to assist in grassroots education | ||||||
26 | efforts related to the Illinois Solar for All Program. The |
| |||||||
| |||||||
1 | Agency shall retire any renewable energy credits purchased | ||||||
2 | from this program and the credits shall count towards the | ||||||
3 | obligation under subsection (c) of Section 1-75 of this | ||||||
4 | Act for the electric utility to which the project is | ||||||
5 | interconnected. The Agency may combine the funding for the | ||||||
6 | Adjustable Block Program established in subparagraph (K) | ||||||
7 | of paragraph (1) of subsection (c) of Section 1-75 and the | ||||||
8 | Illinois Solar for All Program to purchase renewable | ||||||
9 | energy credits from new photovoltaic projects that would | ||||||
10 | be eligible for either program so long as: the annual | ||||||
11 | ratepayer funds collected to purchase renewable resources | ||||||
12 | pursuant to subsection (c) of Section 1-75 is at least | ||||||
13 | double the amount collected in the 2019-2020 delivery | ||||||
14 | year, no more than 20% of any individual block within the | ||||||
15 | Adjustable Block Program is allocated to Solar for | ||||||
16 | All-eligible projects, and the funding sources for both | ||||||
17 | programs are the same for projects so funded. Any | ||||||
18 | renewable energy credits purchased from this program in | ||||||
19 | combination with the Adjustable Block Program shall count | ||||||
20 | toward the obligation for new photovoltaic projects under | ||||||
21 | subparagraph (C) of paragraph (1) of subsection (c) of | ||||||
22 | Section 1-75 of this Act. Any photovoltaic projects | ||||||
23 | selected for this program in combination with the | ||||||
24 | Adjustable Block Program are subject to the requirements | ||||||
25 | of the Illinois Solar for All Program and may receive | ||||||
26 | Illinois Solar for All Program pricing, with the Illinois |
| |||||||
| |||||||
1 | Solar for All Program budget covering the difference | ||||||
2 | between the renewable energy credit price from the | ||||||
3 | currently open block of the Adjustable Block Program and | ||||||
4 | the Solar for All renewable energy credit price. Illinois | ||||||
5 | Solar for All subprograms providing funding for | ||||||
6 | installation of distributed renewable energy generation | ||||||
7 | devices shall use funding in this manner from Adjustable | ||||||
8 | Block Program distributed renewable energy generation | ||||||
9 | device blocks. The Illinois Solar for All Low-Income | ||||||
10 | Community Solar subprogram shall use funding in this | ||||||
11 | manner from the Adjustable Block Program community | ||||||
12 | renewable generation project blocks, if such blocks are | ||||||
13 | legally authorized. If no Adjustable Block Program | ||||||
14 | community renewable generation project block is currently | ||||||
15 | legally authorized and if a competitively procured | ||||||
16 | Community Solar Program is legally authorized under | ||||||
17 | Section 1-75 of this Act, then (i) a portion of the | ||||||
18 | utility-held renewable resources budget allocated by the | ||||||
19 | Agency to such competitive Community Solar Program each | ||||||
20 | year shall be reserved for the Solar for All Low-Income | ||||||
21 | Community Solar subprogram as if such budget came from an | ||||||
22 | Adjustable Block Program block for purposes of this | ||||||
23 | paragraph (3) and (ii) the average renewable energy credit | ||||||
24 | price of Community Solar Program selected projects from | ||||||
25 | the prior delivery year (or a shorter period, if a full | ||||||
26 | delivery year of the Community Solar Program has not been |
| |||||||
| |||||||
1 | completed) shall be used for allocating funding to the | ||||||
2 | Solar for All Low-Income Community Solar subprogram in | ||||||
3 | lieu of the Adjustable Block Program renewable energy | ||||||
4 | credit block price mentioned earlier in this paragraph | ||||||
5 | (3). The Agency shall try to manage program capacities and | ||||||
6 | budgets to make the fullest use of this option to | ||||||
7 | accommodate Solar for All project applications. | ||||||
8 | (4) The Agency shall, consistent with the requirements | ||||||
9 | of this subsection (b), propose the Illinois Solar for All | ||||||
10 | Program terms, conditions, and requirements, including the | ||||||
11 | prices to be paid for renewable energy credits, and which | ||||||
12 | prices may be determined through a formula, through the | ||||||
13 | development, review, and approval of the Agency's | ||||||
14 | long-term renewable resources procurement plan described | ||||||
15 | in subsection (c) of Section 1-75 of this Act and Section | ||||||
16 | 16-111.5 of the Public Utilities Act. In the course of the | ||||||
17 | Commission proceeding initiated to review and approve the | ||||||
18 | plan, including the Illinois Solar for All Program | ||||||
19 | proposed by the Agency, a party may propose an additional | ||||||
20 | low-income solar or solar incentive program, or | ||||||
21 | modifications to the programs proposed by the Agency, and | ||||||
22 | the Commission may approve an additional program, or | ||||||
23 | modifications to the Agency's proposed program, if the | ||||||
24 | additional or modified program more effectively maximizes | ||||||
25 | the benefits to low-income customers after taking into | ||||||
26 | account all relevant factors, including, but not limited |
| |||||||
| |||||||
1 | to, the extent to which a competitive market for | ||||||
2 | low-income solar has developed. Following the Commission's | ||||||
3 | approval of the Illinois Solar for All Program, the Agency | ||||||
4 | or a party may propose adjustments to the program terms, | ||||||
5 | conditions, and requirements, including the price offered | ||||||
6 | to new systems, to ensure the long-term viability and | ||||||
7 | success of the program. The Commission shall review and | ||||||
8 | approve any modifications to the program through the plan | ||||||
9 | revision process described in Section 16-111.5 of the | ||||||
10 | Public Utilities Act. | ||||||
11 | (5) The Agency shall issue a request for | ||||||
12 | qualifications for a third-party program administrator or | ||||||
13 | administrators to administer all or a portion of the | ||||||
14 | Illinois Solar for All Program. The third-party program | ||||||
15 | administrator shall be chosen through a competitive bid | ||||||
16 | process based on selection criteria and requirements | ||||||
17 | developed by the Agency, including, but not limited to, | ||||||
18 | experience in administering low-income energy programs and | ||||||
19 | overseeing statewide clean energy or energy efficiency | ||||||
20 | services. If the Agency retains a program administrator or | ||||||
21 | administrators to implement all or a portion of the | ||||||
22 | Illinois Solar for All Program, each administrator shall | ||||||
23 | periodically submit reports to the Agency and Commission | ||||||
24 | for each program that it administers, at appropriate | ||||||
25 | intervals to be identified by the Agency in its long-term | ||||||
26 | renewable resources procurement plan, provided that the |
| |||||||
| |||||||
1 | reporting interval is at least quarterly. Administration | ||||||
2 | of the Illinois Solar for All Program shall include | ||||||
3 | facilitation of the partnering of companies that develop | ||||||
4 | or install solar projects through this program or any | ||||||
5 | other Illinois program with graduates of Illinois-based | ||||||
6 | job training programs, particularly graduates who reside | ||||||
7 | in environmental justice communities. | ||||||
8 | (6) The long-term renewable resources procurement plan | ||||||
9 | shall also provide for an independent evaluation of the | ||||||
10 | Illinois Solar for All Program. At least every 2 years, | ||||||
11 | the Agency shall select an independent evaluator to review | ||||||
12 | and report on the Illinois Solar for All Program and the | ||||||
13 | performance of the third-party program administrator of | ||||||
14 | the Illinois Solar for All Program. The evaluation shall | ||||||
15 | be based on objective criteria developed through a public | ||||||
16 | stakeholder process. The process shall include feedback | ||||||
17 | and participation from Illinois Solar for All Program | ||||||
18 | stakeholders, including participants and organizations in | ||||||
19 | environmental justice and historically underserved | ||||||
20 | communities. The report shall include a summary of the | ||||||
21 | evaluation of the Illinois Solar for All Program based on | ||||||
22 | the stakeholder developed objective criteria. The report | ||||||
23 | shall include the number of projects installed; the total | ||||||
24 | installed capacity in kilowatts; the average cost per | ||||||
25 | kilowatt of installed capacity to the extent reasonably | ||||||
26 | obtainable by the Agency; the number of jobs or job |
| |||||||
| |||||||
1 | opportunities created; economic, social, and environmental | ||||||
2 | benefits created; and the total administrative costs | ||||||
3 | expended by the Agency and program administrator to | ||||||
4 | implement and evaluate the program. The report shall be | ||||||
5 | delivered to the Commission and posted on the Agency's | ||||||
6 | website, and shall be used, as needed, to revise the | ||||||
7 | Illinois Solar for All Program. The Commission shall also | ||||||
8 | consider the results of the evaluation as part of its | ||||||
9 | review of the long-term renewable resources procurement | ||||||
10 | plan under subsection (c) of Section 1-75 of this Act. | ||||||
11 | (7) If additional funding for the programs described | ||||||
12 | in this subsection (b) is available under subsection (k) | ||||||
13 | of Section 16-108 of the Public Utilities Act, then the | ||||||
14 | Agency shall submit a procurement plan to the Commission | ||||||
15 | no later than September 1, 2018, that proposes how the | ||||||
16 | Agency will procure programs on behalf of the applicable | ||||||
17 | utility. After notice and hearing, the Commission shall | ||||||
18 | approve, or approve with modification, the plan no later | ||||||
19 | than November 1, 2018. | ||||||
20 | (8) As part of the development and update of the | ||||||
21 | long-term renewable resources procurement plan authorized | ||||||
22 | by subsection (c) of Section 1-75 of this Act, the Agency | ||||||
23 | shall plan for: (A) actions to refer customers from the | ||||||
24 | Illinois Solar for All Program to electric and natural gas | ||||||
25 | income-qualified energy efficiency programs, and vice | ||||||
26 | versa, with the goal of increasing participation in both |
| |||||||
| |||||||
1 | of these programs; (B) effective procedures for data | ||||||
2 | sharing, as needed, to effectuate referrals between the | ||||||
3 | Illinois Solar for All Program and both electric and | ||||||
4 | natural gas income-qualified energy efficiency programs, | ||||||
5 | including sharing customer information directly with the | ||||||
6 | utilities, as needed and appropriate; and (C) efforts to | ||||||
7 | identify any existing deferred maintenance programs for | ||||||
8 | which prospective Solar for All customers may be eligible | ||||||
9 | and connect prospective customers for whom deferred | ||||||
10 | maintenance is or may be a barrier to solar installation | ||||||
11 | to those programs. | ||||||
12 | As used in this subsection (b), "low-income households" | ||||||
13 | means persons and families whose income does not exceed 80% of | ||||||
14 | area median income, adjusted for family size and revised every | ||||||
15 | 5 years. | ||||||
16 | For the purposes of this subsection (b), the Agency shall | ||||||
17 | define "environmental justice community" based on | ||||||
18 | methodologies and findings established by the Illinois Power | ||||||
19 | Agency and its Administrator for the Illinois Solar for All | ||||||
20 | Program in its initial long-term renewable resources | ||||||
21 | procurement plan and updated by the Illinois Power Agency and | ||||||
22 | its Administrator for the Illinois Solar for All Program as | ||||||
23 | part of the long-term renewable resources procurement plan | ||||||
24 | update as part of long-term renewable resources procurement | ||||||
25 | plan development, to ensure, to the extent practicable, | ||||||
26 | compatibility with other agencies' definitions and may, for |
| |||||||
| |||||||
1 | guidance, look to the definitions used by federal, state, or | ||||||
2 | local governments . | ||||||
3 | (b-5) After the receipt of all payments required by | ||||||
4 | Section 16-115D of the Public Utilities Act, no additional | ||||||
5 | funds shall be deposited into the Illinois Power Agency | ||||||
6 | Renewable Energy Resources Fund unless directed by order of | ||||||
7 | the Commission. | ||||||
8 | (b-10) After the receipt of all payments required by | ||||||
9 | Section 16-115D of the Public Utilities Act and payment in | ||||||
10 | full of all contracts executed by the Agency under subsections | ||||||
11 | (b) and (i) of this Section, if the balance of the Illinois | ||||||
12 | Power Agency Renewable Energy Resources Fund is under $5,000, | ||||||
13 | then the Fund shall be inoperative and any remaining funds and | ||||||
14 | any funds submitted to the Fund after that date, shall be | ||||||
15 | transferred to the Supplemental Low-Income Energy Assistance | ||||||
16 | Fund for use in the Low-Income Home Energy Assistance Program, | ||||||
17 | as authorized by the Energy Assistance Act. | ||||||
18 | (c) (Blank). | ||||||
19 | (d) (Blank). | ||||||
20 | (e) All renewable energy credits procured using monies | ||||||
21 | from the Illinois Power Agency Renewable Energy Resources Fund | ||||||
22 | shall be permanently retired. | ||||||
23 | (f) The selection of one or more third-party program | ||||||
24 | managers or administrators, the selection of the independent | ||||||
25 | evaluator, and the procurement processes described in this | ||||||
26 | Section are exempt from the requirements of the Illinois |
| |||||||
| |||||||
1 | Procurement Code, under Section 20-10 of that Code. | ||||||
2 | (g) All disbursements from the Illinois Power Agency | ||||||
3 | Renewable Energy Resources Fund shall be made only upon | ||||||
4 | warrants of the Comptroller drawn upon the Treasurer as | ||||||
5 | custodian of the Fund upon vouchers signed by the Director or | ||||||
6 | by the person or persons designated by the Director for that | ||||||
7 | purpose. The Comptroller is authorized to draw the warrant | ||||||
8 | upon vouchers so signed. The Treasurer shall accept all | ||||||
9 | warrants so signed and shall be released from liability for | ||||||
10 | all payments made on those warrants. | ||||||
11 | (h) The Illinois Power Agency Renewable Energy Resources | ||||||
12 | Fund shall not be subject to sweeps, administrative charges, | ||||||
13 | or chargebacks, including, but not limited to, those | ||||||
14 | authorized under Section 8h of the State Finance Act, that | ||||||
15 | would in any way result in the transfer of any funds from this | ||||||
16 | Fund to any other fund of this State or in having any such | ||||||
17 | funds utilized for any purpose other than the express purposes | ||||||
18 | set forth in this Section.
| ||||||
19 | (h-5) The Agency may assess fees to each bidder to recover | ||||||
20 | the costs incurred in connection with a procurement process | ||||||
21 | held under this Section. Fees collected from bidders shall be | ||||||
22 | deposited into the Renewable Energy Resources Fund. | ||||||
23 | (i) Supplemental procurement process. | ||||||
24 | (1) Within 90 days after the effective date of this | ||||||
25 | amendatory Act of the 98th General Assembly, the Agency | ||||||
26 | shall develop a one-time supplemental procurement plan |
| |||||||
| |||||||
1 | limited to the procurement of renewable energy credits, if | ||||||
2 | available, from new or existing photovoltaics, including, | ||||||
3 | but not limited to, distributed photovoltaic generation. | ||||||
4 | Nothing in this subsection (i) requires procurement of | ||||||
5 | wind generation through the supplemental procurement. | ||||||
6 | Renewable energy credits procured from new | ||||||
7 | photovoltaics, including, but not limited to, distributed | ||||||
8 | photovoltaic generation, under this subsection (i) must be | ||||||
9 | procured from devices installed by a qualified person. In | ||||||
10 | its supplemental procurement plan, the Agency shall | ||||||
11 | establish contractually enforceable mechanisms for | ||||||
12 | ensuring that the installation of new photovoltaics is | ||||||
13 | performed by a qualified person. | ||||||
14 | For the purposes of this paragraph (1), "qualified | ||||||
15 | person" means a person who performs installations of | ||||||
16 | photovoltaics, including, but not limited to, distributed | ||||||
17 | photovoltaic generation, and who: (A) has completed an | ||||||
18 | apprenticeship as a journeyman electrician from a United | ||||||
19 | States Department of Labor registered electrical | ||||||
20 | apprenticeship and training program and received a | ||||||
21 | certification of satisfactory completion; or (B) does not | ||||||
22 | currently meet the criteria under clause (A) of this | ||||||
23 | paragraph (1), but is enrolled in a United States | ||||||
24 | Department of Labor registered electrical apprenticeship | ||||||
25 | program, provided that the person is directly supervised | ||||||
26 | by a person who meets the criteria under clause (A) of this |
| |||||||
| |||||||
1 | paragraph (1); or (C) has obtained one of the following | ||||||
2 | credentials in addition to attesting to satisfactory | ||||||
3 | completion of at least 5 years or 8,000 hours of | ||||||
4 | documented hands-on electrical experience: (i) a North | ||||||
5 | American Board of Certified Energy Practitioners (NABCEP) | ||||||
6 | Installer Certificate for Solar PV; (ii) an Underwriters | ||||||
7 | Laboratories (UL) PV Systems Installer Certificate; (iii) | ||||||
8 | an Electronics Technicians Association, International | ||||||
9 | (ETAI) Level 3 PV Installer Certificate; or (iv) an | ||||||
10 | Associate in Applied Science degree from an Illinois | ||||||
11 | Community College Board approved community college program | ||||||
12 | in renewable energy or a distributed generation | ||||||
13 | technology. | ||||||
14 | For the purposes of this paragraph (1), "directly | ||||||
15 | supervised" means that there is a qualified person who | ||||||
16 | meets the qualifications under clause (A) of this | ||||||
17 | paragraph (1) and who is available for supervision and | ||||||
18 | consultation regarding the work performed by persons under | ||||||
19 | clause (B) of this paragraph (1), including a final | ||||||
20 | inspection of the installation work that has been directly | ||||||
21 | supervised to ensure safety and conformity with applicable | ||||||
22 | codes. | ||||||
23 | For the purposes of this paragraph (1), "install" | ||||||
24 | means the major activities and actions required to | ||||||
25 | connect, in accordance with applicable building and | ||||||
26 | electrical codes, the conductors, connectors, and all |
| |||||||
| |||||||
1 | associated fittings, devices, power outlets, or | ||||||
2 | apparatuses mounted at the premises that are directly | ||||||
3 | involved in delivering energy to the premises' electrical | ||||||
4 | wiring from the photovoltaics, including, but not limited | ||||||
5 | to, to distributed photovoltaic generation. | ||||||
6 | The renewable energy credits procured pursuant to the | ||||||
7 | supplemental procurement plan shall be procured using up | ||||||
8 | to $30,000,000 from the Illinois Power Agency Renewable | ||||||
9 | Energy Resources Fund. The Agency shall not plan to use | ||||||
10 | funds from the Illinois Power Agency Renewable Energy | ||||||
11 | Resources Fund in excess of the monies on deposit in such | ||||||
12 | fund or projected to be deposited into such fund. The | ||||||
13 | supplemental procurement plan shall ensure adequate, | ||||||
14 | reliable, affordable, efficient, and environmentally | ||||||
15 | sustainable renewable energy resources (including credits) | ||||||
16 | at the lowest total cost over time, taking into account | ||||||
17 | any benefits of price stability. | ||||||
18 | To the extent available, 50% of the renewable energy | ||||||
19 | credits procured from distributed renewable energy | ||||||
20 | generation shall come from devices of less than 25 | ||||||
21 | kilowatts in nameplate capacity. Procurement of renewable | ||||||
22 | energy credits from distributed renewable energy | ||||||
23 | generation devices shall be done through multi-year | ||||||
24 | contracts of no less than 5 years. The Agency shall create | ||||||
25 | credit requirements for counterparties. In order to | ||||||
26 | minimize the administrative burden on contracting |
| |||||||
| |||||||
1 | entities, the Agency shall solicit the use of third | ||||||
2 | parties to aggregate distributed renewable energy. These | ||||||
3 | third parties shall enter into and administer contracts | ||||||
4 | with individual distributed renewable energy generation | ||||||
5 | device owners. An individual distributed renewable energy | ||||||
6 | generation device owner shall
have the ability to measure | ||||||
7 | the output of his or her distributed renewable energy | ||||||
8 | generation device. | ||||||
9 | In developing the supplemental procurement plan, the | ||||||
10 | Agency shall hold at least one workshop open to the public | ||||||
11 | within 90 days after the effective date of this amendatory | ||||||
12 | Act of the 98th General Assembly and shall consider any | ||||||
13 | comments made by stakeholders or the public. Upon | ||||||
14 | development of the supplemental procurement plan within | ||||||
15 | this 90-day period, copies of the supplemental procurement | ||||||
16 | plan shall be posted and made publicly available on the | ||||||
17 | Agency's and Commission's websites. All interested parties | ||||||
18 | shall have 14 days following the date of posting to | ||||||
19 | provide comment to the Agency on the supplemental | ||||||
20 | procurement plan. All comments submitted to the Agency | ||||||
21 | shall be specific, supported by data or other detailed | ||||||
22 | analyses, and, if objecting to all or a portion of the | ||||||
23 | supplemental procurement plan, accompanied by specific | ||||||
24 | alternative wording or proposals. All comments shall be | ||||||
25 | posted on the Agency's and Commission's websites. Within | ||||||
26 | 14 days following the end of the 14-day review period, the |
| |||||||
| |||||||
1 | Agency shall revise the supplemental procurement plan as | ||||||
2 | necessary based on the comments received and file its | ||||||
3 | revised supplemental procurement plan with the Commission | ||||||
4 | for approval. | ||||||
5 | (2) Within 5 days after the filing of the supplemental | ||||||
6 | procurement plan at the Commission, any person objecting | ||||||
7 | to the supplemental procurement plan shall file an | ||||||
8 | objection with the Commission. Within 10 days after the | ||||||
9 | filing, the Commission shall determine whether a hearing | ||||||
10 | is necessary. The Commission shall enter its order | ||||||
11 | confirming or modifying the supplemental procurement plan | ||||||
12 | within 90 days after the filing of the supplemental | ||||||
13 | procurement plan by the Agency. | ||||||
14 | (3) The Commission shall approve the supplemental | ||||||
15 | procurement plan of renewable energy credits to be | ||||||
16 | procured from new or existing photovoltaics, including, | ||||||
17 | but not limited to, distributed photovoltaic generation, | ||||||
18 | if the Commission determines that it will ensure adequate, | ||||||
19 | reliable, affordable, efficient, and environmentally | ||||||
20 | sustainable electric service in the form of renewable | ||||||
21 | energy credits at the lowest total cost over time, taking | ||||||
22 | into account any benefits of price stability. | ||||||
23 | (4) The supplemental procurement process under this | ||||||
24 | subsection (i) shall include each of the following | ||||||
25 | components: | ||||||
26 | (A) Procurement administrator. The Agency may |
| |||||||
| |||||||
1 | retain a procurement administrator in the manner set | ||||||
2 | forth in item (2) of subsection (a) of Section 1-75 of | ||||||
3 | this Act to conduct the supplemental procurement or | ||||||
4 | may elect to use the same procurement administrator | ||||||
5 | administering the Agency's annual procurement under | ||||||
6 | Section 1-75. | ||||||
7 | (B) Procurement monitor. The procurement monitor | ||||||
8 | retained by the Commission pursuant to Section | ||||||
9 | 16-111.5 of the Public Utilities Act shall: | ||||||
10 | (i) monitor interactions among the procurement | ||||||
11 | administrator and bidders and suppliers; | ||||||
12 | (ii) monitor and report to the Commission on | ||||||
13 | the progress of the supplemental procurement | ||||||
14 | process; | ||||||
15 | (iii) provide an independent confidential | ||||||
16 | report to the Commission regarding the results of | ||||||
17 | the procurement events; | ||||||
18 | (iv) assess compliance with the procurement | ||||||
19 | plan approved by the Commission for the | ||||||
20 | supplemental procurement process; | ||||||
21 | (v) preserve the confidentiality of supplier | ||||||
22 | and bidding information in a manner consistent | ||||||
23 | with all applicable laws, rules, regulations, and | ||||||
24 | tariffs; | ||||||
25 | (vi) provide expert advice to the Commission | ||||||
26 | and consult with the procurement administrator |
| |||||||
| |||||||
1 | regarding issues related to procurement process | ||||||
2 | design, rules, protocols, and policy-related | ||||||
3 | matters; | ||||||
4 | (vii) consult with the procurement | ||||||
5 | administrator regarding the development and use of | ||||||
6 | benchmark criteria, standard form contracts, | ||||||
7 | credit policies, and bid documents; and | ||||||
8 | (viii) perform, with respect to the | ||||||
9 | supplemental procurement process, any other | ||||||
10 | procurement monitor duties specifically delineated | ||||||
11 | within subsection (i) of this Section. | ||||||
12 | (C) Solicitation, pre-qualification, and | ||||||
13 | registration of bidders. The procurement administrator | ||||||
14 | shall disseminate information to potential bidders to | ||||||
15 | promote a procurement event, notify potential bidders | ||||||
16 | that the procurement administrator may enter into a | ||||||
17 | post-bid price negotiation with bidders that meet the | ||||||
18 | applicable benchmarks, provide supply requirements, | ||||||
19 | and otherwise explain the competitive procurement | ||||||
20 | process. In addition to such other publication as the | ||||||
21 | procurement administrator determines is appropriate, | ||||||
22 | this information shall be posted on the Agency's and | ||||||
23 | the Commission's websites. The procurement | ||||||
24 | administrator shall also administer the | ||||||
25 | prequalification process, including evaluation of | ||||||
26 | credit worthiness, compliance with procurement rules, |
| |||||||
| |||||||
1 | and agreement to the standard form contract developed | ||||||
2 | pursuant to item (D) of this paragraph (4). The | ||||||
3 | procurement administrator shall then identify and | ||||||
4 | register bidders to participate in the procurement | ||||||
5 | event. | ||||||
6 | (D) Standard contract forms and credit terms and | ||||||
7 | instruments. The procurement administrator, in | ||||||
8 | consultation with the Agency, the Commission, and | ||||||
9 | other interested parties and subject to Commission | ||||||
10 | oversight, shall develop and provide standard contract | ||||||
11 | forms for the supplier contracts that meet generally | ||||||
12 | accepted industry practices as well as include any | ||||||
13 | applicable State of Illinois terms and conditions that | ||||||
14 | are required for contracts entered into by an agency | ||||||
15 | of the State of Illinois. Standard credit terms and | ||||||
16 | instruments that meet generally accepted industry | ||||||
17 | practices shall be similarly developed. Contracts for | ||||||
18 | new photovoltaics shall include a provision attesting | ||||||
19 | that the supplier will use a qualified person for the | ||||||
20 | installation of the device pursuant to paragraph (1) | ||||||
21 | of subsection (i) of this Section. The procurement | ||||||
22 | administrator shall make available to the Commission | ||||||
23 | all written comments it receives on the contract | ||||||
24 | forms,
credit terms, or instruments. If the | ||||||
25 | procurement administrator cannot reach agreement with | ||||||
26 | the parties as to the contract terms and conditions, |
| |||||||
| |||||||
1 | the procurement administrator must notify the | ||||||
2 | Commission of any disputed terms and the Commission | ||||||
3 | shall resolve the dispute. The terms of the contracts | ||||||
4 | shall not be subject to negotiation by winning | ||||||
5 | bidders, and the bidders must agree to the terms of the | ||||||
6 | contract in advance so that winning bids are selected | ||||||
7 | solely on the basis of price. | ||||||
8 | (E) Requests for proposals; competitive | ||||||
9 | procurement process. The procurement administrator | ||||||
10 | shall design and issue requests for proposals to | ||||||
11 | supply renewable energy credits in accordance with the | ||||||
12 | supplemental procurement plan, as approved by the | ||||||
13 | Commission. The requests for proposals shall set forth | ||||||
14 | a procedure for sealed, binding commitment bidding | ||||||
15 | with pay-as-bid settlement, and provision for | ||||||
16 | selection of bids on the basis of price, provided, | ||||||
17 | however, that no bid shall be accepted if it exceeds | ||||||
18 | the benchmark developed pursuant to item (F) of this | ||||||
19 | paragraph (4). | ||||||
20 | (F) Benchmarks. Benchmarks for each product to be | ||||||
21 | procured shall be developed by the procurement | ||||||
22 | administrator in consultation with Commission staff, | ||||||
23 | the Agency, and the procurement monitor for use in | ||||||
24 | this supplemental procurement. | ||||||
25 | (G) A plan for implementing contingencies in the | ||||||
26 | event of supplier default, Commission rejection of |
| |||||||
| |||||||
1 | results, or any other cause. | ||||||
2 | (5) Within 2 business days after opening the sealed | ||||||
3 | bids, the procurement administrator shall submit a | ||||||
4 | confidential report to the Commission. The report shall | ||||||
5 | contain the results of the bidding for each of the | ||||||
6 | products along with the procurement administrator's | ||||||
7 | recommendation for the acceptance and rejection of bids | ||||||
8 | based on the price benchmark criteria and other factors | ||||||
9 | observed in the process. The procurement monitor also | ||||||
10 | shall submit a confidential report to the Commission | ||||||
11 | within 2 business days after opening the sealed bids. The | ||||||
12 | report shall contain the procurement monitor's assessment | ||||||
13 | of bidder behavior in the process as well as an assessment | ||||||
14 | of the procurement administrator's compliance with the | ||||||
15 | procurement process and rules. The Commission shall review | ||||||
16 | the confidential reports submitted by the procurement | ||||||
17 | administrator and procurement monitor and shall accept or | ||||||
18 | reject the recommendations of the procurement | ||||||
19 | administrator within 2 business days after receipt of the | ||||||
20 | reports. | ||||||
21 | (6) Within 3 business days after the Commission | ||||||
22 | decision approving the results of a procurement event, the | ||||||
23 | Agency shall enter into binding contractual arrangements | ||||||
24 | with the winning suppliers using the standard form | ||||||
25 | contracts. | ||||||
26 | (7) The names of the successful bidders and the |
| |||||||
| |||||||
1 | average of the winning bid prices for each contract type | ||||||
2 | and for each contract term shall be made available to the | ||||||
3 | public within 2 days after the supplemental procurement | ||||||
4 | event. The Commission, the procurement monitor, the | ||||||
5 | procurement administrator, the Agency, and all | ||||||
6 | participants in the procurement process shall maintain the | ||||||
7 | confidentiality of all other supplier and bidding | ||||||
8 | information in a manner consistent with all applicable | ||||||
9 | laws, rules, regulations, and tariffs. Confidential | ||||||
10 | information, including the confidential reports submitted | ||||||
11 | by the procurement administrator and procurement monitor | ||||||
12 | pursuant to this Section, shall not be made publicly | ||||||
13 | available and shall not be discoverable by any party in | ||||||
14 | any proceeding, absent a compelling demonstration of need, | ||||||
15 | nor shall those reports be admissible in any proceeding | ||||||
16 | other than one for law enforcement purposes. | ||||||
17 | (8) The supplemental procurement provided in this | ||||||
18 | subsection (i) shall not be subject to the requirements | ||||||
19 | and limitations of subsections (c) and (d) of this | ||||||
20 | Section. | ||||||
21 | (9) Expenses incurred in connection with the | ||||||
22 | procurement process held pursuant to this Section, | ||||||
23 | including, but not limited to, the cost of developing the | ||||||
24 | supplemental procurement plan, the procurement | ||||||
25 | administrator, procurement monitor, and the cost of the | ||||||
26 | retirement of renewable energy credits purchased pursuant |
| |||||||
| |||||||
1 | to the supplemental procurement shall be paid for from the | ||||||
2 | Illinois Power Agency Renewable Energy Resources Fund. The | ||||||
3 | Agency shall enter into an interagency agreement with the | ||||||
4 | Commission to reimburse the Commission for its costs | ||||||
5 | associated with the procurement monitor for the | ||||||
6 | supplemental procurement process. | ||||||
7 | (Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17 .) | ||||||
8 | (20 ILCS 3855/1-75) | ||||||
9 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
10 | and Procurement Bureau has the following duties and | ||||||
11 | responsibilities: | ||||||
12 | (a) The Planning and Procurement Bureau shall each year, | ||||||
13 | beginning in 2008, develop procurement plans and conduct | ||||||
14 | competitive procurement processes in accordance with the | ||||||
15 | requirements of Section 16-111.5 of the Public Utilities Act | ||||||
16 | for the eligible retail customers of electric utilities that | ||||||
17 | on December 31, 2005 provided electric service to at least | ||||||
18 | 100,000 customers in Illinois. Beginning with the delivery | ||||||
19 | year commencing on June 1, 2017, the Planning and Procurement | ||||||
20 | Bureau shall develop plans and processes for the procurement | ||||||
21 | of zero emission credits from zero emission facilities in | ||||||
22 | accordance with the requirements of subsection (d-5) of this | ||||||
23 | Section. The Planning and Procurement Bureau shall also | ||||||
24 | develop procurement plans and conduct competitive procurement | ||||||
25 | processes in accordance with the requirements of Section |
| |||||||
| |||||||
1 | 16-111.5 of the Public Utilities Act for the eligible retail | ||||||
2 | customers of small multi-jurisdictional electric utilities | ||||||
3 | that (i) on December 31, 2005 served less than 100,000 | ||||||
4 | customers in Illinois and (ii) request a procurement plan for | ||||||
5 | their Illinois jurisdictional load. This Section shall not | ||||||
6 | apply to a small multi-jurisdictional utility until such time | ||||||
7 | as a small multi-jurisdictional utility requests the Agency to | ||||||
8 | prepare a procurement plan for their Illinois jurisdictional | ||||||
9 | load. For the purposes of this Section, the term "eligible | ||||||
10 | retail customers" has the same definition as found in Section | ||||||
11 | 16-111.5(a) of the Public Utilities Act. | ||||||
12 | Beginning with the plan or plans to be implemented in the | ||||||
13 | 2017 delivery year, the Agency shall no longer include the | ||||||
14 | procurement of renewable energy resources in the annual | ||||||
15 | procurement plans required by this subsection (a), except as | ||||||
16 | provided in subsection (q) of Section 16-111.5 of the Public | ||||||
17 | Utilities Act and subsection (j) of this Section , and shall | ||||||
18 | instead develop a long-term renewable resources procurement | ||||||
19 | plan in accordance with subsection (c) of this Section and | ||||||
20 | Section 16-111.5 of the Public Utilities Act. | ||||||
21 | (1) The Agency shall each year, beginning in 2008, as | ||||||
22 | needed, issue a request for qualifications for experts or | ||||||
23 | expert consulting firms to develop the procurement plans | ||||||
24 | in accordance with Section 16-111.5 of the Public | ||||||
25 | Utilities Act. In order to qualify an expert or expert | ||||||
26 | consulting firm must have: |
| |||||||
| |||||||
1 | (A) direct previous experience assembling | ||||||
2 | large-scale power supply plans or portfolios for | ||||||
3 | end-use customers; | ||||||
4 | (B) an advanced degree in economics, mathematics, | ||||||
5 | engineering, risk management, or a related area of | ||||||
6 | study; | ||||||
7 | (C) 10 years of experience in the electricity | ||||||
8 | sector, including managing supply risk; | ||||||
9 | (D) expertise in wholesale electricity market | ||||||
10 | rules, including those established by the Federal | ||||||
11 | Energy Regulatory Commission and regional transmission | ||||||
12 | organizations; | ||||||
13 | (E) expertise in credit protocols and familiarity | ||||||
14 | with contract protocols; | ||||||
15 | (F) adequate resources to perform and fulfill the | ||||||
16 | required functions and responsibilities; and | ||||||
17 | (G) the absence of a conflict of interest and | ||||||
18 | inappropriate bias for or against potential bidders or | ||||||
19 | the affected electric utilities. | ||||||
20 | (2) The Agency shall each year, as needed, issue a | ||||||
21 | request for qualifications for a procurement administrator | ||||||
22 | to conduct the competitive procurement processes in | ||||||
23 | accordance with Section 16-111.5 of the Public Utilities | ||||||
24 | Act. In order to qualify an expert or expert consulting | ||||||
25 | firm must have: | ||||||
26 | (A) direct previous experience administering a |
| |||||||
| |||||||
1 | large-scale competitive procurement process; | ||||||
2 | (B) an advanced degree in economics, mathematics, | ||||||
3 | engineering, or a related area of study; | ||||||
4 | (C) 10 years of experience in the electricity | ||||||
5 | sector, including risk management experience; | ||||||
6 | (D) expertise in wholesale electricity market | ||||||
7 | rules, including those established by the Federal | ||||||
8 | Energy Regulatory Commission and regional transmission | ||||||
9 | organizations; | ||||||
10 | (E) expertise in credit and contract protocols; | ||||||
11 | (F) adequate resources to perform and fulfill the | ||||||
12 | required functions and responsibilities; and | ||||||
13 | (G) the absence of a conflict of interest and | ||||||
14 | inappropriate bias for or against potential bidders or | ||||||
15 | the affected electric utilities. | ||||||
16 | (3) The Agency shall provide affected utilities and | ||||||
17 | other interested parties with the lists of qualified | ||||||
18 | experts or expert consulting firms identified through the | ||||||
19 | request for qualifications processes that are under | ||||||
20 | consideration to develop the procurement plans and to | ||||||
21 | serve as the procurement administrator. The Agency shall | ||||||
22 | also provide each qualified expert's or expert consulting | ||||||
23 | firm's response to the request for qualifications. All | ||||||
24 | information provided under this subparagraph shall also be | ||||||
25 | provided to the Commission. The Agency may provide by rule | ||||||
26 | for fees associated with supplying the information to |
| |||||||
| |||||||
1 | utilities and other interested parties. These parties | ||||||
2 | shall, within 5 business days, notify the Agency in | ||||||
3 | writing if they object to any experts or expert consulting | ||||||
4 | firms on the lists. Objections shall be based on: | ||||||
5 | (A) failure to satisfy qualification criteria; | ||||||
6 | (B) identification of a conflict of interest; or | ||||||
7 | (C) evidence of inappropriate bias for or against | ||||||
8 | potential bidders or the affected utilities. | ||||||
9 | The Agency shall remove experts or expert consulting | ||||||
10 | firms from the lists within 10 days if there is a | ||||||
11 | reasonable basis for an objection and provide the updated | ||||||
12 | lists to the affected utilities and other interested | ||||||
13 | parties. If the Agency fails to remove an expert or expert | ||||||
14 | consulting firm from a list, an objecting party may seek | ||||||
15 | review by the Commission within 5 days thereafter by | ||||||
16 | filing a petition, and the Commission shall render a | ||||||
17 | ruling on the petition within 10 days. There is no right of | ||||||
18 | appeal of the Commission's ruling. | ||||||
19 | (4) The Agency shall issue requests for proposals to | ||||||
20 | the qualified experts or expert consulting firms to | ||||||
21 | develop a procurement plan for the affected utilities and | ||||||
22 | to serve as procurement administrator. | ||||||
23 | (5) The Agency shall select an expert or expert | ||||||
24 | consulting firm to develop procurement plans based on the | ||||||
25 | proposals submitted and shall award contracts of up to 5 | ||||||
26 | years to those selected. |
| |||||||
| |||||||
1 | (6) The Agency shall select an expert or expert | ||||||
2 | consulting firm, with approval of the Commission, to serve | ||||||
3 | as procurement administrator based on the proposals | ||||||
4 | submitted. If the Commission rejects, within 5 days, the | ||||||
5 | Agency's selection, the Agency shall submit another | ||||||
6 | recommendation within 3 days based on the proposals | ||||||
7 | submitted. The Agency shall award a 5-year contract to the | ||||||
8 | expert or expert consulting firm so selected with | ||||||
9 | Commission approval. | ||||||
10 | (b) The experts or expert consulting firms retained by the | ||||||
11 | Agency shall, as appropriate, prepare procurement plans, and | ||||||
12 | conduct a competitive procurement process as prescribed in | ||||||
13 | Section 16-111.5 of the Public Utilities Act, to ensure | ||||||
14 | adequate, reliable, affordable, efficient, and environmentally | ||||||
15 | sustainable electric service at the lowest total cost over | ||||||
16 | time, taking into account any benefits of price stability, for | ||||||
17 | eligible retail customers of electric utilities that on | ||||||
18 | December 31, 2005 provided electric service to at least | ||||||
19 | 100,000 customers in the State of Illinois, and for eligible | ||||||
20 | Illinois retail customers of small multi-jurisdictional | ||||||
21 | electric utilities that (i) on December 31, 2005 served less | ||||||
22 | than 100,000 customers in Illinois and (ii) request a | ||||||
23 | procurement plan for their Illinois jurisdictional load. | ||||||
24 | (c) Renewable portfolio standard. | ||||||
25 | (1)(A) The Agency shall develop a long-term renewable | ||||||
26 | resources procurement plan that shall include procurement |
| |||||||
| |||||||
1 | programs and competitive procurement events necessary to | ||||||
2 | meet the goals set forth in this subsection (c). The | ||||||
3 | initial long-term renewable resources procurement plan | ||||||
4 | shall be released for comment no later than 160 days after | ||||||
5 | June 1, 2017 (the effective date of Public Act 99-906). | ||||||
6 | The Agency shall review, and may revise on an expedited | ||||||
7 | basis, the long-term renewable resources procurement plan | ||||||
8 | at least every 2 years, which shall be conducted in | ||||||
9 | conjunction with the procurement plan under Section | ||||||
10 | 16-111.5 of the Public Utilities Act to the extent | ||||||
11 | practicable to minimize administrative expense. No later
| ||||||
12 | than 90 days after the effective date of this amendatory | ||||||
13 | Act of the 102nd General Assembly, the Agency shall | ||||||
14 | release for comment a
revision to the long-term renewable | ||||||
15 | resources procurement
plan, updating only elements of the | ||||||
16 | most recently approved
plan as needed to comply with this | ||||||
17 | amendatory Act of the
102nd General Assembly. 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 | ||||||
25 | percentages: 13% by the 2017 delivery year; increasing by | ||||||
26 | at least 1.5% each delivery year thereafter to at least |
| |||||||
| |||||||
1 | 25% by the 2025 delivery year; increasing by at least 4% | ||||||
2 | each delivery year
after the 2025 delivery year to at | ||||||
3 | least 45% by 2030;
increasing by at least 3% each delivery | ||||||
4 | year after the 2030
delivery year to at least 60% by 2035, | ||||||
5 | 75% by 2040, and 90%
by 2045; increasing by at least 2% | ||||||
6 | each delivery year after
the 2045 delivery year to 100% by | ||||||
7 | the 2050 delivery year and continuing at 100% no less than | ||||||
8 | 25% for each delivery year thereafter. In the event of a | ||||||
9 | conflict between these goals and the new wind and new | ||||||
10 | photovoltaic procurement requirements described in items | ||||||
11 | (i) through (iii) of subparagraph (C) of this paragraph | ||||||
12 | (1), the long-term plan shall prioritize compliance with | ||||||
13 | the new wind and new photovoltaic procurement requirements | ||||||
14 | described in items (i) through (iii) of subparagraph (C) | ||||||
15 | of this paragraph (1) over the annual percentage targets | ||||||
16 | described in this subparagraph (B). The Agency shall not | ||||||
17 | comply with the
annual percentage targets described in | ||||||
18 | this subparagraph
(B) by procuring renewable energy | ||||||
19 | credits on the spot
market that are unlikely to lead to the | ||||||
20 | development of new
renewable resources. | ||||||
21 | For the delivery year beginning June 1, 2017, the | ||||||
22 | procurement plan shall include cost-effective renewable | ||||||
23 | energy resources equal to at least 13% of each utility's | ||||||
24 | load for eligible retail customers and 13% of the | ||||||
25 | applicable portion of each utility's load for retail | ||||||
26 | customers who are not eligible retail customers, which |
| |||||||
| |||||||
1 | applicable portion shall equal 50% of the utility's load | ||||||
2 | for retail customers who are not eligible retail customers | ||||||
3 | on February 28, 2017. | ||||||
4 | For the delivery year beginning June 1, 2018, the | ||||||
5 | procurement plan shall include cost-effective renewable | ||||||
6 | energy resources equal to at least 14.5% of each utility's | ||||||
7 | load for eligible retail customers and 14.5% of the | ||||||
8 | applicable portion of each utility's load for retail | ||||||
9 | customers who are not eligible retail customers, which | ||||||
10 | applicable portion shall equal 75% of the utility's load | ||||||
11 | for retail customers who are not eligible retail customers | ||||||
12 | on February 28, 2017. | ||||||
13 | For the delivery year beginning June 1, 2019, and for | ||||||
14 | each year thereafter, the procurement plans shall include | ||||||
15 | cost-effective renewable energy resources equal to a | ||||||
16 | minimum percentage of each utility's load for all retail | ||||||
17 | customers as follows: 16% by June 1, 2019; increasing by | ||||||
18 | 1.5% each year thereafter to 25% by June 1, 2025; | ||||||
19 | increasing by at least 4% each year thereafter to at least
| ||||||
20 | 45% by June 1, 2030; increasing by at least 3% each year
| ||||||
21 | thereafter to at least 90% by June 1, 2045; increasing by
| ||||||
22 | at least 2% each year thereafter to at least 100% by June
| ||||||
23 | 1, 2050 and 25% by June 1, 2026 and each year thereafter. | ||||||
24 | For each delivery year, the Agency shall first | ||||||
25 | recognize each utility's obligations for that delivery | ||||||
26 | year under existing contracts. Any renewable energy |
| |||||||
| |||||||
1 | credits under existing contracts, including renewable | ||||||
2 | energy credits as part of renewable energy resources, | ||||||
3 | shall be used to meet the goals set forth in this | ||||||
4 | subsection (c) for the delivery year. | ||||||
5 | (C) Of the renewable energy credits procured under | ||||||
6 | this subsection (c), at least 75% shall come from wind and | ||||||
7 | photovoltaic projects. The long-term renewable resources | ||||||
8 | procurement plan described in subparagraph (A) of this | ||||||
9 | paragraph (1) shall include the procurement of renewable | ||||||
10 | energy credits in amounts equal to at least the following : | ||||||
11 | at least 5,000,000 renewable energy credits from
| ||||||
12 | new wind and new photovoltaic projects for each
| ||||||
13 | delivery year by the end of the delivery year | ||||||
14 | beginning
June 1, 2020, unless the project has delays | ||||||
15 | in the
establishment of an operating interconnection | ||||||
16 | with the
applicable transmission or distribution | ||||||
17 | system as a
result of the actions or inactions of the | ||||||
18 | transmission
or distribution provider, or other causes | ||||||
19 | for force
majeure as outlined in the procurement | ||||||
20 | contract, in
which case, not later than June 1, 2022; | ||||||
21 | at least 13,000,000 renewable energy credits from
| ||||||
22 | new wind and new photovoltaic projects for each
| ||||||
23 | delivery year by the end of the delivery year | ||||||
24 | beginning
June 1, 2021; | ||||||
25 | at least 18,000,000 renewable energy credits from
| ||||||
26 | new wind and new photovoltaic projects for each
|
| |||||||
| |||||||
1 | delivery year by the end of the delivery year | ||||||
2 | beginning
June 1, 2022; | ||||||
3 | at least 23,000,000 renewable energy credits from
| ||||||
4 | new wind and new photovoltaic projects for each
| ||||||
5 | delivery year by the end of the delivery year | ||||||
6 | beginning June 1, 2023; | ||||||
7 | at least 28,000,000 renewable energy credits from
| ||||||
8 | new wind and new photovoltaic projects for each
| ||||||
9 | delivery year by the end of the delivery year | ||||||
10 | beginning
June 1, 2024; | ||||||
11 | at least 33,000,000 renewable energy credits from
| ||||||
12 | new wind and new photovoltaic projects for each
| ||||||
13 | delivery year by the end of the delivery year | ||||||
14 | beginning
June 1, 2025; | ||||||
15 | at least 38,000,000 renewable energy credits from
| ||||||
16 | new wind and new photovoltaic projects for each
| ||||||
17 | delivery year by the end of the delivery year | ||||||
18 | beginning
June 1, 2026; | ||||||
19 | at least 43,000,000 renewable energy credits from
| ||||||
20 | new wind and new photovoltaic projects for each
| ||||||
21 | delivery year by the end of the delivery year | ||||||
22 | beginning
June 1, 2027; | ||||||
23 | at least 48,000,000 renewable energy credits from
| ||||||
24 | new wind and new photovoltaic projects for each
| ||||||
25 | delivery year by the end of the delivery year | ||||||
26 | beginning
June 1, 2028; |
| |||||||
| |||||||
1 | at least 53,000,000 renewable energy credits from
| ||||||
2 | new wind and new photovoltaic projects for each
| ||||||
3 | delivery year by the end of the delivery year | ||||||
4 | beginning
June 1, 2029; and | ||||||
5 | at least 58,000,000 renewable energy credits from | ||||||
6 | new wind and new photovoltaic projects for each
| ||||||
7 | delivery year by the end of the delivery year | ||||||
8 | beginning
June 1, 2030. | ||||||
9 | (i) By the end of the 2020 delivery year: | ||||||
10 | At least 2,000,000 renewable energy credits | ||||||
11 | for each delivery year shall come from new wind | ||||||
12 | projects; and | ||||||
13 | Of the renewable energy credits procured from | ||||||
14 | new
wind and new photovoltaic projects for each | ||||||
15 | delivery
year At least 2,000,000 renewable energy | ||||||
16 | credits for each delivery year shall come from new | ||||||
17 | photovoltaic projects; of that amount , to the | ||||||
18 | extent possible, the Agency shall procure 50% from | ||||||
19 | new wind projects and 50%
from new photovoltaic | ||||||
20 | projects. Of the amount to be
procured from new | ||||||
21 | photovoltaic projects, the Agency
shall procure, | ||||||
22 | to the extent reasonably practicable : at least 33% | ||||||
23 | 50% from distributed and community solar | ||||||
24 | photovoltaic projects using the programs program | ||||||
25 | outlined in subparagraphs subparagraph (K) and (N) | ||||||
26 | of this paragraph (1) through the 2021 delivery |
| |||||||
| |||||||
1 | year,
increasing ratably beginning in the 2022 | ||||||
2 | delivery year
to at least 50% by the 2038 delivery | ||||||
3 | year and for each
delivery year thereafter from | ||||||
4 | distributed renewable energy generation devices or | ||||||
5 | community renewable generation projects; at least | ||||||
6 | 40% from utility-scale solar projects; at least 7% | ||||||
7 | 2% from brownfield site photovoltaic projects that | ||||||
8 | are not community renewable generation projects; | ||||||
9 | and the remainder shall be determined through the | ||||||
10 | long-term planning process described in | ||||||
11 | subparagraph (A) of this paragraph (1). | ||||||
12 | In developing the long-term renewable resources
| ||||||
13 | procurement plan, the Agency shall consider other
| ||||||
14 | approaches, in addition to competitive procurements,
that | ||||||
15 | can be used to procure renewable energy credits
from | ||||||
16 | brownfield site photovoltaic projects and thereby
help | ||||||
17 | return blighted or contaminated land to
productive use | ||||||
18 | while enhancing public health and the
well-being of | ||||||
19 | Illinois residents, including those in
environmental | ||||||
20 | justice communities, as defined using
existing | ||||||
21 | methodologies and findings used by the
Illinois Power | ||||||
22 | Agency and its Administrator in its
Illinois Solar for All | ||||||
23 | Program. | ||||||
24 | Of the amount of renewable energy credits to be
| ||||||
25 | procured from either distributed or community solar
| ||||||
26 | photovoltaic projects using the programs outlined in
|
| |||||||
| |||||||
1 | subparagraph (K) of this paragraph (1), the
long-term plan | ||||||
2 | developed through the process described
in subparagraph | ||||||
3 | (A) of this paragraph (1) shall use
the following initial | ||||||
4 | breakdown, which may be adjusted
upon review by the Agency | ||||||
5 | and approval by the
Commission: | ||||||
6 | (i) at least 25% from distributed renewable energy | ||||||
7 | generation devices with a nameplate
capacity of no | ||||||
8 | more than 25 kilowatts; | ||||||
9 | (ii) at least 25% from distributed renewable
| ||||||
10 | energy generation devices with a nameplate
capacity of | ||||||
11 | more than 25 kilowatts and no more than
2,000 | ||||||
12 | kilowatts; | ||||||
13 | (iii) at least 25% from photovoltaic community
| ||||||
14 | renewable generation projects; and | ||||||
15 | (iv) the remaining 25% shall be allocated as
| ||||||
16 | specified by the Agency in the long-term renewable
| ||||||
17 | resources procurement plan. | ||||||
18 | The ratable procurement of new renewable resources
| ||||||
19 | discussed in this subparagraph (C) shall involve
annual | ||||||
20 | procurements of new wind and new photovoltaic
projects | ||||||
21 | and, in the case of the Adjustable Block
Program created | ||||||
22 | by subparagraph (K) of this paragraph (1), the annual | ||||||
23 | release of new blocks of capacity each
year with the goal | ||||||
24 | of encouraging stability and steady
growth in the | ||||||
25 | renewable resources market and avoiding
boom-bust cycles. | ||||||
26 | (ii) By the end of the 2025 delivery year: |
| |||||||
| |||||||
1 | At least 3,000,000 renewable energy credits | ||||||
2 | for each delivery year shall come from new wind | ||||||
3 | projects; and | ||||||
4 | At least 3,000,000 renewable energy credits | ||||||
5 | for each delivery year shall come from new | ||||||
6 | photovoltaic projects; of that amount, to the | ||||||
7 | extent possible, the Agency shall procure: at | ||||||
8 | least 50% from solar photovoltaic projects using | ||||||
9 | the program outlined in subparagraph (K) of this | ||||||
10 | paragraph (1) from distributed renewable energy | ||||||
11 | devices or community renewable generation | ||||||
12 | projects; at least 40% from utility-scale solar | ||||||
13 | projects; at least 2% from brownfield site | ||||||
14 | photovoltaic projects that are not community | ||||||
15 | renewable generation projects; and the remainder | ||||||
16 | shall be determined through the long-term planning | ||||||
17 | process described in subparagraph (A) of this | ||||||
18 | paragraph (1). | ||||||
19 | (iii) By the end of the 2030 delivery year: | ||||||
20 | At least 4,000,000 renewable energy credits | ||||||
21 | for each delivery year shall come from new wind | ||||||
22 | projects; and | ||||||
23 | At least 4,000,000 renewable energy credits | ||||||
24 | for each delivery year shall come from new | ||||||
25 | photovoltaic projects; of that amount, to the | ||||||
26 | extent possible, the Agency shall procure: at |
| |||||||
| |||||||
1 | least 50% from solar photovoltaic projects using | ||||||
2 | the program outlined in subparagraph (K) of this | ||||||
3 | paragraph (1) from distributed renewable energy | ||||||
4 | devices or community renewable generation | ||||||
5 | projects; at least 40% from utility-scale solar | ||||||
6 | projects; at least 2% from brownfield site | ||||||
7 | photovoltaic projects that are not community | ||||||
8 | renewable generation projects; and the remainder | ||||||
9 | shall be determined through the long-term planning | ||||||
10 | process described in subparagraph (A) of this | ||||||
11 | paragraph (1). | ||||||
12 | For purposes of this Section: | ||||||
13 | "New wind projects" means wind renewable | ||||||
14 | energy facilities that are energized after June 1, | ||||||
15 | 2017 for the delivery year commencing June 1, 2017 | ||||||
16 | or within 3 years after the date the Commission | ||||||
17 | approves contracts for subsequent delivery years. | ||||||
18 | "New photovoltaic projects" means photovoltaic | ||||||
19 | renewable energy facilities that are energized | ||||||
20 | after June 1, 2017. Photovoltaic projects | ||||||
21 | developed under Section 1-56 of this Act shall not | ||||||
22 | apply towards the new photovoltaic project | ||||||
23 | requirements in this subparagraph (C) unless they
| ||||||
24 | are purchased in combination with the Adjustable
| ||||||
25 | Block Program established in subparagraph (K) of
| ||||||
26 | this paragraph (1), as described in paragraph
|
| |||||||
| |||||||
1 | (3.5) of subsection (b) of Section 1-56 of this
| ||||||
2 | Act . | ||||||
3 | (D) Renewable energy credits shall be cost effective. | ||||||
4 | For purposes of this subsection (c), "cost effective" | ||||||
5 | means that the costs of procuring renewable energy | ||||||
6 | resources do not cause the limit stated in subparagraph | ||||||
7 | (E) of this paragraph (1) to be exceeded and, for | ||||||
8 | renewable energy credits procured through a competitive | ||||||
9 | procurement event, do not exceed benchmarks based on | ||||||
10 | market prices for like products in the region. For | ||||||
11 | purposes of this subsection (c), "like products" means | ||||||
12 | contracts for renewable energy credits from the same or | ||||||
13 | substantially similar technology, same or substantially | ||||||
14 | similar vintage (new or existing), the same or | ||||||
15 | substantially similar quantity, and the same or | ||||||
16 | substantially similar contract length and structure. | ||||||
17 | Benchmarks shall be developed by the procurement | ||||||
18 | administrator, in consultation with the Commission staff, | ||||||
19 | Agency staff, and the procurement monitor and shall be | ||||||
20 | subject to Commission review and approval. If price | ||||||
21 | benchmarks for like products in the region are not | ||||||
22 | available, the procurement administrator shall establish | ||||||
23 | price benchmarks based on publicly available data on | ||||||
24 | regional technology costs and expected current and future | ||||||
25 | regional energy prices. The benchmarks in this Section | ||||||
26 | shall not be used to curtail or otherwise reduce |
| |||||||
| |||||||
1 | contractual obligations entered into by or through the | ||||||
2 | Agency prior to June 1, 2017 (the effective date of Public | ||||||
3 | Act 99-906). | ||||||
4 | (E) For purposes of this subsection (c), the required | ||||||
5 | procurement of cost-effective renewable energy resources | ||||||
6 | for a particular year commencing prior to June 1, 2017 | ||||||
7 | shall be measured as a percentage of the actual amount of | ||||||
8 | electricity (megawatt-hours) supplied by the electric | ||||||
9 | utility to eligible retail customers in the delivery year | ||||||
10 | ending immediately prior to the procurement, and, for | ||||||
11 | delivery years commencing on and after June 1, 2017, the | ||||||
12 | required procurement of cost-effective renewable energy | ||||||
13 | resources for a particular year shall be measured as a | ||||||
14 | percentage of the actual amount of electricity | ||||||
15 | (megawatt-hours) delivered by the electric utility in the | ||||||
16 | delivery year ending immediately prior to the procurement, | ||||||
17 | to all retail customers in its service territory. For | ||||||
18 | purposes of this subsection (c), the amount paid per | ||||||
19 | kilowatthour means the total amount paid for electric | ||||||
20 | service expressed on a per kilowatthour basis. For | ||||||
21 | purposes of this subsection (c), the total amount paid for | ||||||
22 | electric service includes without limitation amounts paid | ||||||
23 | for supply, transmission, distribution, surcharges, and | ||||||
24 | add-on taxes. | ||||||
25 | Notwithstanding the requirements of this subsection | ||||||
26 | (c), the total of renewable energy resources procured |
| |||||||
| |||||||
1 | under the procurement plan for any single year shall be | ||||||
2 | subject to the limitations of this subparagraph (E). Until | ||||||
3 | the
delivery year beginning June 1, 2023, such Such | ||||||
4 | procurement shall be reduced for all retail customers | ||||||
5 | based on the amount necessary to limit the annual | ||||||
6 | estimated average net increase due to the costs of these | ||||||
7 | resources included in the amounts paid by eligible retail | ||||||
8 | customers in connection with electric service to no more | ||||||
9 | than the greater of 2.67% 2.015% of the amount paid per | ||||||
10 | kilowatthour by those customers during the year ending May | ||||||
11 | 31, 2009 2007 or the incremental amount per kilowatthour | ||||||
12 | paid for these resources in 2011. Beginning with the | ||||||
13 | delivery year
beginning June 1, 2023, such procurement | ||||||
14 | shall be reduced
for all retail customers based on the | ||||||
15 | amount necessary to
limit the annual estimated average net | ||||||
16 | increase due to the
costs of these resources included in | ||||||
17 | the amounts paid by
eligible retail customers in | ||||||
18 | connection with electric
service to no more than the | ||||||
19 | greater of 4.88% of the amount
paid per kilowatt hour by | ||||||
20 | those customers during the year
ending May 31, 2009 or the | ||||||
21 | incremental amount per
kilowatt hour paid for these | ||||||
22 | resources in 2011. To arrive at a maximum dollar amount of | ||||||
23 | renewable energy resources to be procured for the | ||||||
24 | particular delivery year, the resulting per kilowatthour | ||||||
25 | amount shall be applied to the actual amount of | ||||||
26 | kilowatthours of electricity delivered, or applicable |
| |||||||
| |||||||
1 | portion of such amount as specified in paragraph (1) of | ||||||
2 | this subsection (c), as applicable, by the electric | ||||||
3 | utility in the delivery year immediately prior to the | ||||||
4 | procurement to all retail customers in its service | ||||||
5 | territory. The calculations required by this subparagraph | ||||||
6 | (E) shall be made only once for each delivery year at the | ||||||
7 | time that the renewable energy resources are procured. | ||||||
8 | Once the determination as to the amount of renewable | ||||||
9 | energy resources to procure is made based on the | ||||||
10 | calculations set forth in this subparagraph (E) and the | ||||||
11 | contracts procuring those amounts are executed, no | ||||||
12 | subsequent rate impact determinations shall be made and no | ||||||
13 | adjustments to those contract amounts shall be allowed. | ||||||
14 | All costs incurred under such contracts shall be fully | ||||||
15 | recoverable by the electric utility as provided in this | ||||||
16 | Section. | ||||||
17 | (F) If the limitation on the amount of renewable | ||||||
18 | energy resources procured in subparagraph (E) of this | ||||||
19 | paragraph (1) prevents the Agency from meeting all of the | ||||||
20 | goals in this subsection (c), the Agency's long-term plan | ||||||
21 | shall prioritize compliance with the requirements of this | ||||||
22 | subsection (c) regarding renewable energy credits in the | ||||||
23 | following order: | ||||||
24 | (i) renewable energy credits under existing | ||||||
25 | contractual obligations; | ||||||
26 | (i-5) funding for the Illinois Solar for All |
| |||||||
| |||||||
1 | Program, as described in subparagraph (O) of this | ||||||
2 | paragraph (1); | ||||||
3 | (ii) renewable energy credits necessary to comply | ||||||
4 | with the new wind and new photovoltaic procurement | ||||||
5 | requirements described in items (i) through (iii) of | ||||||
6 | subparagraph (C) of this paragraph (1); and | ||||||
7 | (iii) renewable energy credits necessary to meet | ||||||
8 | the remaining requirements of this subsection (c). | ||||||
9 | (G) The following provisions shall apply to the | ||||||
10 | Agency's procurement of renewable energy credits under | ||||||
11 | this subsection (c): | ||||||
12 | (i) Notwithstanding whether a long-term renewable | ||||||
13 | resources procurement plan has been approved, the | ||||||
14 | Agency shall conduct an initial forward procurement | ||||||
15 | for renewable energy credits from new utility-scale | ||||||
16 | wind projects within 160 days after June 1, 2017 (the | ||||||
17 | effective date of Public Act 99-906). For the purposes | ||||||
18 | of this initial forward procurement, the Agency shall | ||||||
19 | solicit 15-year contracts for delivery of 1,000,000 | ||||||
20 | renewable energy credits delivered annually from new | ||||||
21 | utility-scale wind projects to begin delivery on June | ||||||
22 | 1, 2019, if available, but not later than June 1, 2021, | ||||||
23 | unless the project has delays in the establishment of | ||||||
24 | an operating interconnection with the applicable | ||||||
25 | transmission or distribution system as a result of the | ||||||
26 | actions or inactions of the transmission or |
| |||||||
| |||||||
1 | distribution provider, or other causes for force | ||||||
2 | majeure as outlined in the procurement contract, in | ||||||
3 | which case, not later than June 1, 2022. Payments to | ||||||
4 | suppliers of renewable energy credits shall commence | ||||||
5 | upon delivery. Renewable energy credits procured under | ||||||
6 | this initial procurement shall be included in the | ||||||
7 | Agency's long-term plan and shall apply to all | ||||||
8 | renewable energy goals in this subsection (c). | ||||||
9 | (ii) Notwithstanding whether a long-term renewable | ||||||
10 | resources procurement plan has been approved, the | ||||||
11 | Agency shall conduct an initial forward procurement | ||||||
12 | for renewable energy credits from new utility-scale | ||||||
13 | solar projects and brownfield site photovoltaic | ||||||
14 | projects within one year 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 solar projects and brownfield site | ||||||
20 | photovoltaic projects to begin delivery on June 1, | ||||||
21 | 2019, if available, but not later than June 1, 2021, | ||||||
22 | unless the project has delays in the establishment of | ||||||
23 | an operating interconnection with the applicable | ||||||
24 | transmission or distribution system as a result of the | ||||||
25 | actions or inactions of the transmission or | ||||||
26 | distribution provider, or other causes for force |
| |||||||
| |||||||
1 | majeure as outlined in the procurement contract, in | ||||||
2 | which case, not later than June 1, 2022. The Agency may | ||||||
3 | structure this initial procurement in one or more | ||||||
4 | discrete procurement events. Payments to suppliers of | ||||||
5 | renewable energy credits shall commence upon delivery. | ||||||
6 | Renewable energy credits procured under this initial | ||||||
7 | procurement shall be included in the Agency's | ||||||
8 | long-term plan and shall apply to all renewable energy | ||||||
9 | goals in this subsection (c). | ||||||
10 | (iii) Notwithstanding whether the Commission has
| ||||||
11 | approved the periodic long-term renewable resources
| ||||||
12 | procurement plan revision described in Section
| ||||||
13 | 16-111.5 of the Public Utilities Act, the Agency shall
| ||||||
14 | conduct at least one subsequent forward procurement
| ||||||
15 | for renewable energy credits from new utility-scale
| ||||||
16 | wind projects, new utility-scale solar, and new
| ||||||
17 | brownfield site photovoltaic projects within 120 days
| ||||||
18 | after the effective date of this amendatory Act of the
| ||||||
19 | 102nd General Assembly in quantities needed to meet | ||||||
20 | the
requirements of subparagraph (C) through the | ||||||
21 | delivery year beginning June 1, 2021. The Agency shall | ||||||
22 | also release additional blocks of capacity into the | ||||||
23 | Adjustable Block Program, as needed to sustain the | ||||||
24 | market for distributed renewable energy generation | ||||||
25 | devices with nameplate capacities both smaller and | ||||||
26 | larger than 25 kilowatts through the subsequent |
| |||||||
| |||||||
1 | long-term renewable resources procurement plan | ||||||
2 | revision process, within 120 days after the effective | ||||||
3 | date of this amendatory Act of the 102nd General | ||||||
4 | Assembly notwithstanding whether the Commission has | ||||||
5 | approved the periodic long-term renewable resources | ||||||
6 | procurement plan revision described in Section | ||||||
7 | 16-111.5 of the Public Utilities Act. Subsequent | ||||||
8 | forward procurements for utility-scale wind projects | ||||||
9 | shall solicit at least 1,000,000 renewable energy | ||||||
10 | credits delivered annually per procurement event and | ||||||
11 | shall be planned, scheduled, and designed such that | ||||||
12 | the cumulative amount of renewable energy credits | ||||||
13 | delivered from all new wind projects in each delivery | ||||||
14 | year shall not exceed the Agency's projection of the | ||||||
15 | cumulative amount of renewable energy credits that | ||||||
16 | will be delivered from all new photovoltaic projects, | ||||||
17 | including utility-scale and distributed photovoltaic | ||||||
18 | devices, in the same delivery year at the time | ||||||
19 | scheduled for wind contract delivery. | ||||||
20 | (iv) If, at any time after the time set for | ||||||
21 | delivery of renewable energy credits pursuant to the | ||||||
22 | initial procurements in items (i) and (ii) of this | ||||||
23 | subparagraph (G), the cumulative amount of renewable | ||||||
24 | energy credits projected to be delivered from all new | ||||||
25 | wind projects in a given delivery year exceeds the | ||||||
26 | cumulative amount of renewable energy credits |
| |||||||
| |||||||
1 | projected to be delivered from all new photovoltaic | ||||||
2 | projects in that delivery year by 200,000 or more | ||||||
3 | renewable energy credits, then the Agency shall within | ||||||
4 | 60 days adjust the procurement programs in the | ||||||
5 | long-term renewable resources procurement plan to | ||||||
6 | ensure that the projected cumulative amount of | ||||||
7 | renewable energy credits to be delivered from all new | ||||||
8 | wind projects does not exceed the projected cumulative | ||||||
9 | amount of renewable energy credits to be delivered | ||||||
10 | from all new photovoltaic projects by 200,000 or more | ||||||
11 | renewable energy credits, provided that nothing in | ||||||
12 | this Section shall preclude the projected cumulative | ||||||
13 | amount of renewable energy credits to be delivered | ||||||
14 | from all new photovoltaic projects from exceeding the | ||||||
15 | projected cumulative amount of renewable energy | ||||||
16 | credits to be delivered from all new wind projects in | ||||||
17 | each delivery year and provided further that nothing | ||||||
18 | in this item (iv) shall require the curtailment of an | ||||||
19 | executed contract. The Agency shall update, on a | ||||||
20 | quarterly basis, its projection of the renewable | ||||||
21 | energy credits to be delivered from all projects in | ||||||
22 | each delivery year. Notwithstanding anything to the | ||||||
23 | contrary, the Agency may adjust the timing of | ||||||
24 | procurement events conducted under this subparagraph | ||||||
25 | (G). The long-term renewable resources procurement | ||||||
26 | plan shall set forth the process by which the |
| |||||||
| |||||||
1 | adjustments may be made. | ||||||
2 | (iv) (v) All procurements under this subparagraph | ||||||
3 | (G) shall comply with the geographic requirements in | ||||||
4 | subparagraph (I) of this paragraph (1) and shall | ||||||
5 | follow the procurement processes and procedures | ||||||
6 | described in this Section and Section 16-111.5 of the | ||||||
7 | Public Utilities Act to the extent practicable, and | ||||||
8 | these processes and procedures may be expedited to | ||||||
9 | accommodate the schedule established by this | ||||||
10 | subparagraph (G). | ||||||
11 | (H) The procurement of renewable energy resources for | ||||||
12 | a given delivery year shall be reduced as described in | ||||||
13 | this subparagraph (H) if an alternative retail electric | ||||||
14 | supplier meets the requirements described in this | ||||||
15 | subparagraph (H). | ||||||
16 | (i) Within 45 days after June 1, 2017 (the | ||||||
17 | effective date of Public Act 99-906), an alternative | ||||||
18 | retail electric supplier or its successor shall submit | ||||||
19 | an informational filing to the Illinois Commerce | ||||||
20 | Commission certifying that, as of December 31, 2015, | ||||||
21 | the alternative retail electric supplier owned one or | ||||||
22 | more electric generating facilities that generates | ||||||
23 | renewable energy resources as defined in Section 1-10 | ||||||
24 | of this Act, provided that such facilities are not | ||||||
25 | powered by wind or photovoltaics, and the facilities | ||||||
26 | generate one renewable energy credit for each |
| |||||||
| |||||||
1 | megawatthour of energy produced from the facility. | ||||||
2 | The informational filing shall identify each | ||||||
3 | facility that was eligible to satisfy the alternative | ||||||
4 | retail electric supplier's obligations under Section | ||||||
5 | 16-115D of the Public Utilities Act as described in | ||||||
6 | this item (i). | ||||||
7 | (ii) For a given delivery year, the alternative | ||||||
8 | retail electric supplier may elect to supply its | ||||||
9 | retail customers with renewable energy credits from | ||||||
10 | the facility or facilities described in item (i) of | ||||||
11 | this subparagraph (H) that continue to be owned by the | ||||||
12 | alternative retail electric supplier. | ||||||
13 | (iii) The alternative retail electric supplier | ||||||
14 | shall notify the Agency and the applicable utility, no | ||||||
15 | later than February 28 of the year preceding the | ||||||
16 | applicable delivery year or 15 days after June 1, 2017 | ||||||
17 | (the effective date of Public Act 99-906), whichever | ||||||
18 | is later, of its election under item (ii) of this | ||||||
19 | subparagraph (H) to supply renewable energy credits to | ||||||
20 | retail customers of the utility. Such election shall | ||||||
21 | identify the amount of renewable energy credits to be | ||||||
22 | supplied by the alternative retail electric supplier | ||||||
23 | to the utility's retail customers and the source of | ||||||
24 | the renewable energy credits identified in the | ||||||
25 | informational filing as described in item (i) of this | ||||||
26 | subparagraph (H), subject to the following |
| |||||||
| |||||||
1 | limitations: | ||||||
2 | For the delivery year beginning June 1, 2018, | ||||||
3 | the maximum amount of renewable energy credits to | ||||||
4 | be supplied by an alternative retail electric | ||||||
5 | supplier under this subparagraph (H) shall be 68% | ||||||
6 | multiplied by 25% multiplied by 14.5% multiplied | ||||||
7 | by the amount of metered electricity | ||||||
8 | (megawatt-hours) delivered by the alternative | ||||||
9 | retail electric supplier to Illinois retail | ||||||
10 | customers during the delivery year ending May 31, | ||||||
11 | 2016. | ||||||
12 | For delivery years beginning June 1, 2019 and | ||||||
13 | each year thereafter, the maximum amount of | ||||||
14 | renewable energy credits to be supplied by an | ||||||
15 | alternative retail electric supplier under this | ||||||
16 | subparagraph (H) shall be 68% multiplied by 50% | ||||||
17 | multiplied by 16% multiplied by the amount of | ||||||
18 | metered electricity (megawatt-hours) delivered by | ||||||
19 | the alternative retail electric supplier to | ||||||
20 | Illinois retail customers during the delivery year | ||||||
21 | ending May 31, 2016, provided that the 16% value | ||||||
22 | shall increase by 1.5% each delivery year | ||||||
23 | thereafter to 25% by the delivery year beginning | ||||||
24 | June 1, 2025, and thereafter the 25% value shall | ||||||
25 | apply to each delivery year. | ||||||
26 | For each delivery year, the total amount of |
| |||||||
| |||||||
1 | renewable energy credits supplied by all alternative | ||||||
2 | retail electric suppliers under this subparagraph (H) | ||||||
3 | shall not exceed 9% of the Illinois target renewable | ||||||
4 | energy credit quantity. The Illinois target renewable | ||||||
5 | energy credit quantity for the delivery year beginning | ||||||
6 | June 1, 2018 is 14.5% multiplied by the total amount of | ||||||
7 | metered electricity (megawatt-hours) delivered in the | ||||||
8 | delivery year immediately preceding that delivery | ||||||
9 | year, provided that the 14.5% shall increase by 1.5% | ||||||
10 | each delivery year thereafter to 25% by the delivery | ||||||
11 | year beginning June 1, 2025, and thereafter the 25% | ||||||
12 | value shall apply to each delivery year. | ||||||
13 | If the requirements set forth in items (i) through | ||||||
14 | (iii) of this subparagraph (H) are met, the charges | ||||||
15 | that would otherwise be applicable to the retail | ||||||
16 | customers of the alternative retail electric supplier | ||||||
17 | under paragraph (6) of this subsection (c) for the | ||||||
18 | applicable delivery year shall be reduced by the ratio | ||||||
19 | of the quantity of renewable energy credits supplied | ||||||
20 | by the alternative retail electric supplier compared | ||||||
21 | to that supplier's target renewable energy credit | ||||||
22 | quantity. The supplier's target renewable energy | ||||||
23 | credit quantity for the delivery year beginning June | ||||||
24 | 1, 2018 is 14.5% multiplied by the total amount of | ||||||
25 | metered electricity (megawatt-hours) delivered by the | ||||||
26 | alternative retail supplier in that delivery year, |
| |||||||
| |||||||
1 | provided that the 14.5% shall increase by 1.5% each | ||||||
2 | delivery year thereafter to 25% by the delivery year | ||||||
3 | beginning June 1, 2025, and thereafter the 25% value | ||||||
4 | shall apply to each delivery year. | ||||||
5 | On or before April 1 of each year, the Agency shall | ||||||
6 | annually publish a report on its website that | ||||||
7 | identifies the aggregate amount of renewable energy | ||||||
8 | credits supplied by alternative retail electric | ||||||
9 | suppliers under this subparagraph (H). | ||||||
10 | (I) The Agency shall design its long-term renewable | ||||||
11 | energy procurement plan to maximize the State's interest | ||||||
12 | in the health, safety, and welfare of its residents, | ||||||
13 | including but not limited to minimizing sulfur dioxide, | ||||||
14 | nitrogen oxide, particulate matter and other pollution | ||||||
15 | that adversely affects public health in this State, | ||||||
16 | increasing fuel and resource diversity in this State, | ||||||
17 | enhancing the reliability and resiliency of the | ||||||
18 | electricity distribution system in this State, meeting | ||||||
19 | goals to limit carbon dioxide emissions under federal or | ||||||
20 | State law, and contributing to a cleaner and healthier | ||||||
21 | environment for the residents citizens of this State. In | ||||||
22 | order to further these legislative purposes, renewable | ||||||
23 | energy credits shall be eligible to be counted toward the | ||||||
24 | renewable energy requirements of this subsection (c) if | ||||||
25 | they are generated from facilities located in this State. | ||||||
26 | The Agency may qualify renewable energy credits from |
| |||||||
| |||||||
1 | facilities located in states adjacent to Illinois if the | ||||||
2 | generator demonstrates and the Agency determines that the | ||||||
3 | operation of such facility or facilities will help promote | ||||||
4 | the State's interest in the health, safety, and welfare of | ||||||
5 | its residents based on the public interest criteria | ||||||
6 | described above. To ensure that the public interest | ||||||
7 | criteria are applied to the procurement and given full | ||||||
8 | effect, the Agency's long-term procurement plan shall | ||||||
9 | describe in detail how each public interest factor shall | ||||||
10 | be considered and weighted for facilities located in | ||||||
11 | states adjacent to Illinois. | ||||||
12 | (J) In order to promote the competitive development of | ||||||
13 | renewable energy resources in furtherance of the State's | ||||||
14 | interest in the health, safety, and welfare of its | ||||||
15 | residents, renewable energy credits shall not be eligible | ||||||
16 | to be counted toward the renewable energy requirements of | ||||||
17 | this subsection (c) if they are sourced from a generating | ||||||
18 | unit whose costs were being recovered through rates | ||||||
19 | regulated by this State or any other state or states on or | ||||||
20 | after January 1, 2017. Each contract executed to purchase | ||||||
21 | renewable energy credits under this subsection (c) shall | ||||||
22 | provide for the contract's termination if the costs of the | ||||||
23 | generating unit supplying the renewable energy credits | ||||||
24 | subsequently begin to be recovered through rates regulated | ||||||
25 | by this State or any other state or states; and each | ||||||
26 | contract shall further provide that, in that event, the |
| |||||||
| |||||||
1 | supplier of the credits must return 110% of all payments | ||||||
2 | received under the contract. Amounts returned under the | ||||||
3 | requirements of this subparagraph (J) shall be retained by | ||||||
4 | the utility and all of these amounts shall be used for the | ||||||
5 | procurement of additional renewable energy credits from | ||||||
6 | new wind or new photovoltaic resources as defined in this | ||||||
7 | subsection (c). The long-term plan shall provide that | ||||||
8 | these renewable energy credits shall be procured in the | ||||||
9 | next procurement event. | ||||||
10 | Notwithstanding the limitations of this subparagraph | ||||||
11 | (J), renewable energy credits sourced from generating | ||||||
12 | units that are constructed, purchased, owned, or leased by | ||||||
13 | an electric utility as part of an approved project, | ||||||
14 | program, or pilot under Section 1-56 of this Act shall be | ||||||
15 | eligible to be counted toward the renewable energy | ||||||
16 | requirements of this subsection (c), regardless of how the | ||||||
17 | costs of these units are recovered. | ||||||
18 | (K) The long-term renewable resources procurement plan | ||||||
19 | developed by the Agency in accordance with subparagraph | ||||||
20 | (A) of this paragraph (1) shall include an Adjustable | ||||||
21 | Block program for the procurement of renewable energy | ||||||
22 | credits from new photovoltaic projects that are | ||||||
23 | distributed renewable energy generation devices or new | ||||||
24 | photovoltaic community renewable generation projects . The | ||||||
25 | Adjustable Block program shall be designed to provide for | ||||||
26 | the steady,
predictable, and sustainable growth of new |
| |||||||
| |||||||
1 | solar
photovoltaic development in Illinois. To this end, | ||||||
2 | the
Adjustable Block program shall provide a transparent | ||||||
3 | annual schedule of prices and quantities to enable the | ||||||
4 | photovoltaic market to scale up and for renewable energy | ||||||
5 | credit prices to adjust at a predictable rate over time. | ||||||
6 | The prices set by the Adjustable Block program can be | ||||||
7 | reflected as a set value or as the product of a formula. | ||||||
8 | The Adjustable Block program shall include for each | ||||||
9 | category of eligible projects: a schedule of standard | ||||||
10 | block purchase prices to be offered; a series of steps, | ||||||
11 | with associated nameplate capacity and purchase prices | ||||||
12 | that adjust from step to step; and automatic opening of | ||||||
13 | the next step as soon as the nameplate capacity and | ||||||
14 | available purchase prices for an open step are fully | ||||||
15 | committed or reserved. Only projects energized on or after | ||||||
16 | June 1, 2017 shall be eligible for the Adjustable Block | ||||||
17 | program. The
Agency shall develop program features and | ||||||
18 | implementation
processes that create consistent market | ||||||
19 | signals, making
the program predictable and sustainable | ||||||
20 | for solar industry
companies, thus allowing them to scale | ||||||
21 | up long-term hiring
and investment activities. For each | ||||||
22 | block group the Agency shall determine the number of | ||||||
23 | blocks, the amount of generation capacity in each block, | ||||||
24 | and the purchase price for each block, provided that the | ||||||
25 | purchase price provided and the total amount of generation | ||||||
26 | in all blocks for all block groups shall be sufficient to |
| |||||||
| |||||||
1 | meet the goals in this subsection (c). The Agency shall | ||||||
2 | establish program
eligibility requirements that ensure | ||||||
3 | that projects that
enter the program are sufficiently | ||||||
4 | mature to indicate a
demonstrable path to completion. The | ||||||
5 | Agency may periodically review its prior decisions | ||||||
6 | establishing the number of blocks, the amount of | ||||||
7 | generation capacity in each block, and the purchase price | ||||||
8 | for each block, and may propose, on an expedited basis, | ||||||
9 | changes to these previously set values, including but not | ||||||
10 | limited to redistributing these amounts and the available | ||||||
11 | funds as necessary and appropriate, subject to Commission | ||||||
12 | approval as part of the periodic plan revision process | ||||||
13 | described in Section 16-111.5 of the Public Utilities Act. | ||||||
14 | The Agency may define different block sizes, purchase | ||||||
15 | prices, or other distinct terms and conditions for | ||||||
16 | projects located in different utility service territories | ||||||
17 | if the Agency deems it necessary to meet the goals in this | ||||||
18 | subsection (c). | ||||||
19 | The Adjustable Block program shall include at least | ||||||
20 | the following block groups in at least the following | ||||||
21 | amounts , which may be adjusted upon review by the Agency | ||||||
22 | and approval by the Commission as described in this | ||||||
23 | subparagraph (K): | ||||||
24 | (i) At least 25% from distributed renewable energy | ||||||
25 | generation devices with a nameplate capacity of no | ||||||
26 | more than 25 10 kilowatts. |
| |||||||
| |||||||
1 | (ii) At least 25% from distributed renewable | ||||||
2 | energy generation devices with a nameplate capacity of | ||||||
3 | more than 25 10 kilowatts and no more than 2,000 | ||||||
4 | kilowatts. The Agency may create sub-categories within | ||||||
5 | this category to account for the differences between | ||||||
6 | projects for small commercial customers, large | ||||||
7 | commercial customers, and public or non-profit | ||||||
8 | customers. | ||||||
9 | (iii) other block groups as specified by the | ||||||
10 | Agency
and approved by the Commission in the long-term
| ||||||
11 | renewable resources procurement plan in order to meet | ||||||
12 | the goals of this subsection (c) At least 25% from | ||||||
13 | photovoltaic community renewable generation projects . | ||||||
14 | (iv) The remaining 25% shall be allocated as | ||||||
15 | specified by the Agency in the long-term renewable | ||||||
16 | resources procurement plan. | ||||||
17 | The Adjustable Block program shall be designed to | ||||||
18 | ensure that renewable energy credits are procured from | ||||||
19 | photovoltaic distributed renewable energy generation | ||||||
20 | devices and new photovoltaic community renewable energy | ||||||
21 | generation projects in diverse locations , including urban
| ||||||
22 | and rural areas, and are not concentrated in a few | ||||||
23 | geographic areas or excluding particular geographic areas . | ||||||
24 | The Adjustable Block program shall reserve 15% of each | ||||||
25 | block's capacity at the block's pricing to be available | ||||||
26 | for qualified vendors that are participants in the |
| |||||||
| |||||||
1 | Illinois Clean Energy Black, Indigenous, and People of | ||||||
2 | Color Contractor Accelerator, as described in the Clean | ||||||
3 | Jobs, Workforce and Contractor Equity Act, and a total of | ||||||
4 | 40% of each block's capacity at the block's price to be | ||||||
5 | available for qualified vendors that score no less than | ||||||
6 | 105 points in the equity points system described in | ||||||
7 | subparagraphs (A) through (H) of paragraph (7) of this | ||||||
8 | subsection (c). Nothing in this paragraph shall prohibit | ||||||
9 | the opening of additional blocks for the unreserved | ||||||
10 | capacity of each block. Beginning with the first update to | ||||||
11 | the Long-Term Renewable Resources Procurement Plan after | ||||||
12 | December 31, 2024, the Agency shall review the reserved | ||||||
13 | capacity level for future blocks. In developing its annual | ||||||
14 | budgets, the Agency shall project the amount of | ||||||
15 | development in each block, at the prices of each block, | ||||||
16 | expected to occur in the budget timeframe. | ||||||
17 | Immediately upon the effective date of this amendatory
| ||||||
18 | Act of the 102nd General Assembly, the Adjustable Block
| ||||||
19 | Program shall stop accepting applications from community
| ||||||
20 | renewable generation projects and shall stop allocating
| ||||||
21 | capacity remaining in open or future blocks to community
| ||||||
22 | renewable generation projects. | ||||||
23 | (L) The procurement of photovoltaic renewable energy | ||||||
24 | credits under the Adjustable Block Program established
| ||||||
25 | under items (i) through (iv) of subparagraph (K) and the
| ||||||
26 | Community Solar Program established under subparagraph (N) |
| |||||||
| |||||||
1 | of this paragraph (1) shall be subject to the following | ||||||
2 | contract and payment terms: | ||||||
3 | (i) The Agency shall procure contracts of at least | ||||||
4 | 15 years in length. | ||||||
5 | (ii) For those renewable energy credits that | ||||||
6 | qualify and are procured from projects with a | ||||||
7 | nameplate
capacity of no more than 10 kilowatts under | ||||||
8 | item (i) of subparagraph (K) of this paragraph (1) , | ||||||
9 | the renewable energy credit purchase price shall be | ||||||
10 | paid in full by the contracting utilities at the time | ||||||
11 | that the facility producing the renewable energy | ||||||
12 | credits is interconnected at the distribution system | ||||||
13 | level of the utility and energized. The electric | ||||||
14 | utility shall receive and retire all renewable energy | ||||||
15 | credits generated by the project for the first 15 | ||||||
16 | years of operation. | ||||||
17 | (iii) For those renewable energy credits that | ||||||
18 | qualify and are procured from projects with a | ||||||
19 | nameplate
capacity of more than 10 kilowatts but no | ||||||
20 | more than 200
kilowatts or, if approved at the | ||||||
21 | recommendation of the Agency in its long-term plan, | ||||||
22 | from projects that include a community ownership | ||||||
23 | component or are owned by a nonprofit or public entity | ||||||
24 | under item (ii) and (iii) of subparagraph (K) of this | ||||||
25 | paragraph (1) and any additional categories of | ||||||
26 | distributed generation included in the long-term |
| |||||||
| |||||||
1 | renewable resources procurement plan and approved by | ||||||
2 | the Commission , 20 percent of the renewable energy | ||||||
3 | credit purchase price shall be paid by the contracting | ||||||
4 | utilities at the time that the facility producing the | ||||||
5 | renewable energy credits is interconnected at the | ||||||
6 | distribution system level of the utility and | ||||||
7 | energized. The remaining portion shall be paid ratably | ||||||
8 | over the subsequent 4-year period. The electric | ||||||
9 | utility shall receive and retire all renewable energy | ||||||
10 | credits generated by the project for the first 15 | ||||||
11 | years of operation. | ||||||
12 | (iv) For those renewable energy credits that
| ||||||
13 | qualify and are procured from all other projects under
| ||||||
14 | subparagraph (K) or (N) of this paragraph (1), the
| ||||||
15 | renewable energy credit purchase price shall be paid | ||||||
16 | by
the contracting utilities over the 15-year life of | ||||||
17 | the
contract. The electric utility shall receive and
| ||||||
18 | retire all renewable energy credits generated by the
| ||||||
19 | project for the first 15 years of operation. | ||||||
20 | (v) (iv) Each contract shall include provisions to | ||||||
21 | ensure the delivery of the renewable energy credits | ||||||
22 | for the full term of the contract. | ||||||
23 | (vi) (v) The utility shall be the counterparty to | ||||||
24 | the contracts executed under this subparagraph (L) | ||||||
25 | that are approved by the Commission under the process | ||||||
26 | described in Section 16-111.5 of the Public Utilities |
| |||||||
| |||||||
1 | Act. No contract shall be executed for an amount that | ||||||
2 | is less than one renewable energy credit per year. | ||||||
3 | (vii) (vi) If, at any time, approved applications | ||||||
4 | for the Adjustable Block program exceed funds | ||||||
5 | collected by the electric utility or would cause the | ||||||
6 | Agency to exceed the limitation described in | ||||||
7 | subparagraph (E) of this paragraph (1) on the amount | ||||||
8 | of renewable energy resources that may be procured, | ||||||
9 | then the Agency shall consider future uncommitted | ||||||
10 | funds to be reserved for these contracts on a | ||||||
11 | first-come, first-served basis, with the delivery of | ||||||
12 | renewable energy credits required beginning at the | ||||||
13 | time that the reserved funds become available. | ||||||
14 | (viii) (vii) Nothing in this Section shall require | ||||||
15 | the utility to advance any payment or pay any amounts | ||||||
16 | that exceed , in a given delivery year, (i) the actual | ||||||
17 | amount of revenues collected by the utility in the | ||||||
18 | delivery year and unspent available revenues from | ||||||
19 | prior delivery years, in both cases under paragraph | ||||||
20 | (6) of this subsection (c) and subsection (k) of | ||||||
21 | Section 16-108 of the Public Utilities Act and (ii) | ||||||
22 | other utility-held funds authorized for renewables | ||||||
23 | procurement by order of the Illinois Commerce | ||||||
24 | Commission. Contracts , and contracts executed under | ||||||
25 | this Section shall expressly incorporate this | ||||||
26 | limitation. |
| |||||||
| |||||||
1 | (ix) Notwithstanding items (ii), (iii), and (iv)
| ||||||
2 | of this subparagraph (L), the Agency shall not be
| ||||||
3 | restricted from offering additional payment structures
| ||||||
4 | if it determines that such adjustments will better
| ||||||
5 | achieve the goals of this subsection (c), as
| ||||||
6 | prioritized in subparagraph (F) of this paragraph (1) | ||||||
7 | of this subsection (c). Any such adjustments shall be | ||||||
8 | approved by the
Commission as a long-term plan | ||||||
9 | amendment under Section
16-111.5 of the Public | ||||||
10 | Utilities Act. | ||||||
11 | (x) Notwithstanding other requirements of this | ||||||
12 | subparagraph (L), no modification shall be required to | ||||||
13 | Adjustable Block Program contracts if they were | ||||||
14 | already executed before new contract forms are | ||||||
15 | implemented under the revised long-term plan that | ||||||
16 | follows this amendatory Act of the 102nd General | ||||||
17 | Assembly, as described in subparagraph (A) of this | ||||||
18 | paragraph (1). | ||||||
19 | (M) The Agency shall be authorized to retain one or | ||||||
20 | more experts or expert consulting firms to develop, | ||||||
21 | administer, implement, operate, and evaluate the | ||||||
22 | Adjustable Block program described in subparagraph (K) of | ||||||
23 | this paragraph (1), and the Agency shall retain the | ||||||
24 | consultant or consultants in the same manner, to the | ||||||
25 | extent practicable, as the Agency retains others to | ||||||
26 | administer provisions of this Act, including, but not |
| |||||||
| |||||||
1 | limited to, the procurement administrator. The selection | ||||||
2 | of experts and expert consulting firms and the procurement | ||||||
3 | process described in this subparagraph (M) are exempt from | ||||||
4 | the requirements of Section 20-10 of the Illinois | ||||||
5 | Procurement Code, under Section 20-10 of that Code. The | ||||||
6 | Agency shall strive to minimize administrative expenses in | ||||||
7 | the implementation of the Adjustable Block program. | ||||||
8 | The Agency and its consultant or consultants shall | ||||||
9 | monitor block activity, share program activity with | ||||||
10 | stakeholders and conduct regularly scheduled meetings to | ||||||
11 | discuss program activity and market conditions. If | ||||||
12 | necessary, the Agency may make prospective administrative | ||||||
13 | adjustments to the Adjustable Block program design, such | ||||||
14 | as redistributing available funds or making adjustments to | ||||||
15 | purchase prices as necessary to achieve the goals of this | ||||||
16 | subsection (c). Program modifications to any price, | ||||||
17 | capacity block, or other program element that do not | ||||||
18 | deviate from the Commission's approved value by more than | ||||||
19 | 25% shall take effect immediately and are not subject to | ||||||
20 | Commission review and approval. Program modifications to | ||||||
21 | any price, capacity block, or other program element that | ||||||
22 | deviate more than 25% from the Commission's approved value | ||||||
23 | must be approved by the Commission as a long-term plan | ||||||
24 | amendment under Section 16-111.5 of the Public Utilities | ||||||
25 | Act. The Agency shall consider stakeholder feedback when | ||||||
26 | making adjustments to the Adjustable Block design and |
| |||||||
| |||||||
1 | shall notify stakeholders in advance of any planned | ||||||
2 | changes. | ||||||
3 | Immediately upon the effective date of this amendatory
| ||||||
4 | Act of the 102nd General Assembly, the Agency shall
| ||||||
5 | consider whether changes to Adjustable Block Program
| ||||||
6 | elements of less than 25% can and should be adopted to
| ||||||
7 | bring the Adjustable Block Program in line with the | ||||||
8 | updated
goals and targets of this subsection (c). | ||||||
9 | (N) The long-term renewable resources procurement plan | ||||||
10 | required by this subsection (c) shall include a Community
| ||||||
11 | Solar Program for solar photovoltaic community renewable | ||||||
12 | generation projects and may include additional community
| ||||||
13 | renewable generation programs or procurements open to
| ||||||
14 | other or additional renewable technology program . The | ||||||
15 | Agency shall establish the terms, conditions, and program | ||||||
16 | requirements for the Community Solar Program and for any
| ||||||
17 | other program or procurement for community renewable | ||||||
18 | generation projects with a goal to expand renewable energy | ||||||
19 | generating facility access to a broader group of energy | ||||||
20 | consumers, to ensure robust participation opportunities | ||||||
21 | for residential and small commercial customers and those | ||||||
22 | who cannot install renewable energy on their own | ||||||
23 | properties , create opportunities for subscribers to
| ||||||
24 | participate in local renewables projects in both urban and
| ||||||
25 | rural communities across the State, enable communities to
| ||||||
26 | self-organize their own renewables projects, and increase
|
| |||||||
| |||||||
1 | community ownership of renewables projects . Any plan | ||||||
2 | approved by the Commission shall allow subscriptions to | ||||||
3 | community renewable generation projects to be portable and | ||||||
4 | transferable. For purposes of this subparagraph (N) : | ||||||
5 | "Community" means: | ||||||
6 | (i) a social unit in which people come | ||||||
7 | together
regularly to effect change; | ||||||
8 | (ii) a social unit in which participants are | ||||||
9 | marked
by a cooperative spirit, a common purpose, | ||||||
10 | or
shared interests or characteristics; or | ||||||
11 | (iii) a space understood by its residents to | ||||||
12 | be
delineated through geographic boundaries or
| ||||||
13 | landmarks. | ||||||
14 | "Community benefit" means: | ||||||
15 | (i) a range of services and activities that
| ||||||
16 | provide affirmative, economic, environmental,
| ||||||
17 | social, cultural, or physical value to a
| ||||||
18 | community; or | ||||||
19 | (ii) a mechanism that enables economic | ||||||
20 | development,
high-quality employment, and | ||||||
21 | education
opportunities for local workers and | ||||||
22 | residents, or
formal monitoring and oversight | ||||||
23 | structures such that community members may ensure | ||||||
24 | that those
services and activities respond to | ||||||
25 | local knowledge
and needs. | ||||||
26 | "Community ownership" means an arrangement in
|
| |||||||
| |||||||
1 | which: | ||||||
2 | (i) an electric generating facility is, or | ||||||
3 | over
time will be, in significant part, owned
| ||||||
4 | collectively by members of the community to which
| ||||||
5 | an electric generating facility provides benefits; | ||||||
6 | (ii) members of that community participate in
| ||||||
7 | decisions regarding the governance, operation,
| ||||||
8 | maintenance, and upgrades of and to that facility;
| ||||||
9 | and | ||||||
10 | (iii) members of that community benefit from | ||||||
11 | regular
use of that facility. | ||||||
12 | "Portable" , "portable" means that subscriptions | ||||||
13 | may be retained by the subscriber even if the | ||||||
14 | subscriber relocates or changes its address within the | ||||||
15 | same utility service territory . | ||||||
16 | "Stakeholder" means any person or entity with a
| ||||||
17 | declared or conceivable interest in a project. | ||||||
18 | "Transferable" ; and "transferable" means that a | ||||||
19 | subscriber may assign or sell subscriptions to another | ||||||
20 | person within the same utility service territory. | ||||||
21 | The Community Solar Program established under this
| ||||||
22 | subparagraph (N) shall be designed to give preference to | ||||||
23 | the procurement of renewable energy credits from projects | ||||||
24 | that
meet one or more of the following community criteria | ||||||
25 | for a
portion of the overall renewable energy credits to | ||||||
26 | be
procured under the Community Solar Program: |
| |||||||
| |||||||
1 | (i) include community ownership; | ||||||
2 | (ii) are put forward by approved vendors or
| ||||||
3 | companies that take higher numbers of the equity
| ||||||
4 | actions described in paragraph (7) of this subsection
| ||||||
5 | (c); | ||||||
6 | (iii) provide additional community benefit, beyond
| ||||||
7 | project participation as a subscriber; | ||||||
8 | (iv) ensure meaningful involvement in project
| ||||||
9 | organization and development by nonprofit
| ||||||
10 | organizations, public entities, or community members; | ||||||
11 | (v) increase the geographic diversity of projects
| ||||||
12 | in the Community Solar Program; | ||||||
13 | (vi) are also brownfield site photovoltaic
| ||||||
14 | projects; | ||||||
15 | (vii) ensure engagement in project operations and
| ||||||
16 | management by nonprofit organizations, public
| ||||||
17 | entities, or community members; or | ||||||
18 | (viii) serve only local subscribers. | ||||||
19 | Terms and guidance within these criteria that are not
| ||||||
20 | defined in this subparagraph (N) shall be defined by the
| ||||||
21 | Agency, with stakeholder input, during the development of
| ||||||
22 | the Agency's long-term renewable resources procurement | ||||||
23 | plan. | ||||||
24 | The Community Solar Program shall procure renewable
| ||||||
25 | energy credits in the following manner: | ||||||
26 | (1) For a portion
of the overall renewable energy |
| |||||||
| |||||||
1 | credits to be procured
under the Community Solar | ||||||
2 | Program, the Agency shall
initiate a request for | ||||||
3 | projects that serve a minimum of 50%
residential and | ||||||
4 | small business subscribers and maximize
the community | ||||||
5 | criteria in this subparagraph (N). The Agency
shall | ||||||
6 | score all projects submitted under this request for
| ||||||
7 | projects based on their ability to meet the community
| ||||||
8 | criteria. Both projects that better meet individual
| ||||||
9 | criteria as well as projects that address a higher | ||||||
10 | number
of criteria shall receive a higher score. The | ||||||
11 | Agency shall
also consider renewable energy credit | ||||||
12 | price when
qualifying and scoring projects. The Agency | ||||||
13 | shall select
the highest scoring projects to advance, | ||||||
14 | subject to budget
availability, reserving a portion of | ||||||
15 | the capacity selected
through the request for those | ||||||
16 | projects that include a
community ownership component. | ||||||
17 | (2) Once projects that
maximize the community | ||||||
18 | criteria have been selected, the
Agency shall initiate | ||||||
19 | a procurement for the remaining
renewable energy | ||||||
20 | credits from photovoltaic community
renewable | ||||||
21 | generation projects needed to meet the goals of
| ||||||
22 | subparagraph (C) of this paragraph (1). The Agency | ||||||
23 | shall
strive to procure renewable energy credits | ||||||
24 | through the
Community Solar Program 4 times per | ||||||
25 | delivery year. This manner of procuring renewable | ||||||
26 | energy credits for the
Community Solar Program may be |
| |||||||
| |||||||
1 | adjusted upon review by the
Agency and approval by the | ||||||
2 | Commission through the long-term
renewable resources | ||||||
3 | procurement plan update process in
order to better | ||||||
4 | meet the goals of this subsection (c) and
the | ||||||
5 | requirements of this subparagraph (N). | ||||||
6 | Electric utilities shall provide a monetary credit to | ||||||
7 | a subscriber's subsequent bill for service for the | ||||||
8 | proportional output of a community renewable generation | ||||||
9 | project attributable to that subscriber as specified in | ||||||
10 | Section 16-107.5 of the Public Utilities Act. | ||||||
11 | The Agency shall procure purchase renewable energy | ||||||
12 | credits from subscribed shares of photovoltaic community | ||||||
13 | renewable generation projects through the Community Solar
| ||||||
14 | Program described in this subparagraph (N) Adjustable | ||||||
15 | Block program described in subparagraph (K) of this | ||||||
16 | paragraph (1) or through the Illinois Solar for All | ||||||
17 | Program described in Section 1-56 of this Act. The Agency | ||||||
18 | shall
procure renewable energy credits from unsubscribed | ||||||
19 | shares
of photovoltaic community renewable generation | ||||||
20 | projects
that have achieved a subscription level of 80% or | ||||||
21 | higher at
the average winning price from the most recent | ||||||
22 | procurement
of renewable energy credits from utility-scale | ||||||
23 | solar
photovoltaic projects or another amount established
| ||||||
24 | through the long-term planning process described in
| ||||||
25 | subparagraph (A) of this paragraph (1) of this subsection | ||||||
26 | (c). The electric utility shall purchase any unsubscribed |
| |||||||
| |||||||
1 | energy from community renewable generation projects that | ||||||
2 | are Qualifying Facilities ("QF") under the electric | ||||||
3 | utility's tariff for purchasing the output from QFs under | ||||||
4 | Public Utilities Regulatory Policies Act of 1978. | ||||||
5 | The owners of and any subscribers to a community | ||||||
6 | renewable generation project shall not be considered | ||||||
7 | public utilities or alternative retail electricity | ||||||
8 | suppliers under the Public Utilities Act solely as a | ||||||
9 | result of their interest in or subscription to a community | ||||||
10 | renewable generation project and shall not be required to | ||||||
11 | become an alternative retail electric supplier by | ||||||
12 | participating in a community renewable generation project | ||||||
13 | with a public utility. | ||||||
14 | (O) For the delivery year beginning June 1, 2018, the | ||||||
15 | long-term renewable resources procurement plan required by | ||||||
16 | this subsection (c) shall provide for the Agency to | ||||||
17 | procure contracts to continue offering the Illinois Solar | ||||||
18 | for All Program described in subsection (b) of Section | ||||||
19 | 1-56 of this Act, and the contracts approved by the | ||||||
20 | Commission shall be executed by the utilities that are | ||||||
21 | subject to this subsection (c). The long-term renewable | ||||||
22 | resources procurement plan shall allocate 5% of the funds | ||||||
23 | available under the plan for the applicable delivery year, | ||||||
24 | or $10,000,000 per delivery year, whichever is greater, to | ||||||
25 | fund the programs, and the plan shall determine the amount | ||||||
26 | of funding to be apportioned to the programs identified in |
| |||||||
| |||||||
1 | subsection (b) of Section 1-56 of this Act; provided that | ||||||
2 | for the delivery years beginning June 1, 2017, June 1, | ||||||
3 | 2021, and June 1, 2025, the long-term renewable resources | ||||||
4 | procurement plan shall allocate 10% of the funds available | ||||||
5 | under the plan for the applicable delivery year, or | ||||||
6 | $20,000,000 per delivery year, whichever is greater, and | ||||||
7 | $10,000,000 of such funds in such year shall be used by an | ||||||
8 | electric utility that serves more than 3,000,000 retail | ||||||
9 | customers in the State to implement a Commission-approved | ||||||
10 | plan under Section 16-108.12 of the Public Utilities Act. | ||||||
11 | In making the determinations required under this | ||||||
12 | subparagraph (O), the Commission shall consider the | ||||||
13 | experience and performance under the programs and any | ||||||
14 | evaluation reports. The Commission shall also provide for | ||||||
15 | an independent evaluation of those programs on a periodic | ||||||
16 | basis that are funded under this subparagraph (O). | ||||||
17 | (P) The Agency shall give preference to the | ||||||
18 | procurement of
renewable energy credits from new | ||||||
19 | utility-scale
photovoltaic and wind projects that provide | ||||||
20 | additional
land use and environmental benefits such as: | ||||||
21 | (i) agriculture-friendly benefits; | ||||||
22 | (ii) pollinator-friendly site practices as
| ||||||
23 | identified in the Pollinator-Friendly Solar Site Act; | ||||||
24 | (iii) brownfield redevelopment, through location
| ||||||
25 | at sites regulated under any of the programs | ||||||
26 | identified as a brownfield site photovoltaic project |
| |||||||
| |||||||
1 | under
Section 1-10; | ||||||
2 | (iv) vegetative buffers, which are areas
| ||||||
3 | consisting of perennial vegetation, excluding invasive
| ||||||
4 | plants and noxious weeds, adjacent to a body of water
| ||||||
5 | that protects the water resources from runoff
| ||||||
6 | pollution, and stabilizes soils, shores, and banks to
| ||||||
7 | protect or provide riparian corridors; | ||||||
8 | (v) commitment to land use practices that result | ||||||
9 | in
carbon sequestration; | ||||||
10 | (vi) land use, design, siting, and construction | ||||||
11 | practices that minimize interference
with natural | ||||||
12 | habitat and wildlife; and | ||||||
13 | (vii) other land use or environmental benefits
| ||||||
14 | identified by the Agency with input from stakeholders
| ||||||
15 | received during the long-term renewable resources
| ||||||
16 | procurement plan revision process. | ||||||
17 | (1.5) No Later than May 31, 2022, all Illinois | ||||||
18 | electric
cooperatives and municipal utilities shall | ||||||
19 | develop a plan
to ensure that their members and customers | ||||||
20 | have access to
renewable energy on a reasonably equivalent | ||||||
21 | basis to all
other residents in the State, including the | ||||||
22 | overall
percentage goals listed in subparagraph (A) of | ||||||
23 | paragraph
(1) of this Section and the carbon-free | ||||||
24 | resources goals of
subsection (k) of this Section 1-75. | ||||||
25 | These plans shall be
developed through a public process | ||||||
26 | involving municipal
utility and cooperative members, |
| |||||||
| |||||||
1 | customers, and other members of the public, and shall be | ||||||
2 | filed with the Illinois
Commerce Commission at least every | ||||||
3 | 2 years. | ||||||
4 | (2) (Blank). | ||||||
5 | (3) (Blank). | ||||||
6 | (4) The electric utility shall retire all renewable | ||||||
7 | energy credits used to comply with the standard. | ||||||
8 | (5) Beginning with the 2010 delivery year and ending | ||||||
9 | June 1, 2017, an electric utility subject to this | ||||||
10 | subsection (c) shall apply the lesser of the maximum | ||||||
11 | alternative compliance payment rate or the most recent | ||||||
12 | estimated alternative compliance payment rate for its | ||||||
13 | service territory for the corresponding compliance period, | ||||||
14 | established pursuant to subsection (d) of Section 16-115D | ||||||
15 | of the Public Utilities Act to its retail customers that | ||||||
16 | take service pursuant to the electric utility's hourly | ||||||
17 | pricing tariff or tariffs. The electric utility shall | ||||||
18 | retain all amounts collected as a result of the | ||||||
19 | application of the alternative compliance payment rate or | ||||||
20 | rates to such customers, and, beginning in 2011, the | ||||||
21 | utility shall include in the information provided under | ||||||
22 | item (1) of subsection (d) of Section 16-111.5 of the | ||||||
23 | Public Utilities Act the amounts collected under the | ||||||
24 | alternative compliance payment rate or rates for the prior | ||||||
25 | year ending May 31. Notwithstanding any limitation on the | ||||||
26 | procurement of renewable energy resources imposed by item |
| |||||||
| |||||||
1 | (2) of this subsection (c), the Agency shall increase its | ||||||
2 | spending on the purchase of renewable energy resources to | ||||||
3 | be procured by the electric utility for the next plan year | ||||||
4 | by an amount equal to the amounts collected by the utility | ||||||
5 | under the alternative compliance payment rate or rates in | ||||||
6 | the prior year ending May 31. | ||||||
7 | (6) The electric utility shall be entitled to recover | ||||||
8 | all of its costs associated with the procurement of | ||||||
9 | renewable energy credits under plans approved under this | ||||||
10 | Section and Section 16-111.5 of the Public Utilities Act. | ||||||
11 | These costs shall include associated reasonable expenses | ||||||
12 | for implementing the procurement programs, including, but | ||||||
13 | not limited to, the costs of administering and evaluating | ||||||
14 | the Adjustable Block program, through an automatic | ||||||
15 | adjustment clause tariff in accordance with subsection (k) | ||||||
16 | of Section 16-108 of the Public Utilities Act. | ||||||
17 | (7) Renewable energy credits procured from new | ||||||
18 | photovoltaic projects or new distributed renewable energy | ||||||
19 | generation devices under this Section after June 1, 2017 | ||||||
20 | (the effective date of Public Act 99-906) must be procured | ||||||
21 | from devices installed by a qualified person in compliance | ||||||
22 | with the requirements of Section 16-128A of the Public | ||||||
23 | Utilities Act and any rules or regulations adopted | ||||||
24 | thereunder. | ||||||
25 | In meeting the renewable energy requirements of this | ||||||
26 | subsection (c), to the extent feasible and consistent with |
| |||||||
| |||||||
1 | State and federal law, the renewable energy credit | ||||||
2 | procurements, Adjustable Block solar program, and | ||||||
3 | community renewable generation program , and Illinois Solar
| ||||||
4 | for All Program shall provide employment opportunities for | ||||||
5 | all segments of the population and workforce, including | ||||||
6 | black, indigenous, and people of color-owned | ||||||
7 | minority-owned and women-owned female-owned business | ||||||
8 | enterprises , as well as black, indigenous, and people of | ||||||
9 | color-owned and women-owned
worker-owned cooperatives or | ||||||
10 | other such employee-owned entities , and shall not, | ||||||
11 | consistent with State and federal law, discriminate based | ||||||
12 | on race or socioeconomic status. | ||||||
13 | Specifically, as the Agency conducts competitive | ||||||
14 | procurement processes and implements programs to procure | ||||||
15 | renewable energy credits identified in the long-term | ||||||
16 | renewable resources procurement plan, the Agency must give | ||||||
17 | preference to the procurement of renewable energy credits | ||||||
18 | from those entities, including approved vendors, | ||||||
19 | companies, nonprofit organizations, and worker-owned | ||||||
20 | cooperatives, as described in the equity actions points | ||||||
21 | calculation in this paragraph (7). Entities from whom the | ||||||
22 | Agency procures renewable energy credits shall comply with | ||||||
23 | submitting an annual report of elements described in the | ||||||
24 | equity actions points calculation in this paragraph (7) | ||||||
25 | for the first 3 years after the year of the procurement | ||||||
26 | event in which renewable energy credits were procured on |
| |||||||
| |||||||
1 | June 1 of each applicable year. For the purposes of this | ||||||
2 | subsection (c): | ||||||
3 | "BIPOC" and "black, indigenous, and people of color" | ||||||
4 | are identical in meaning and have the same definition as | ||||||
5 | used in the Clean Jobs, Workforce and Contractor Equity | ||||||
6 | Act. | ||||||
7 | "Labor peace agreement" means an agreement between an | ||||||
8 | entity and any labor organization recognized under the | ||||||
9 | National Labor Relations Act, referred to in this Act as a | ||||||
10 | bona fide labor organization, that may prohibit labor | ||||||
11 | organizations and members from engaging in picketing, work | ||||||
12 | stoppages, boycotts, and any other economic interference | ||||||
13 | with the entity. This agreement means that the entity has | ||||||
14 | agreed not to disrupt efforts by the bona fide labor | ||||||
15 | organization to communicate with, and attempt to organize | ||||||
16 | and represent, the entity's employees. The agreement shall | ||||||
17 | provide a bona fide labor organization access at | ||||||
18 | reasonable times to areas in which the entity's employees | ||||||
19 | work, for the purpose of meeting with employees to discuss | ||||||
20 | their right to representation, employment rights under | ||||||
21 | State law, and terms and conditions of employment. This | ||||||
22 | type of agreement shall not mandate a particular method of | ||||||
23 | election or certification of the bona fide labor | ||||||
24 | organization. | ||||||
25 | "Energy worker" has the meaning set forth in Section | ||||||
26 | 20-10 of the Energy Community Reinvestment Act. |
| |||||||
| |||||||
1 | The Illinois Power Agency, using alternative bidding | ||||||
2 | procedures as provided for in subsection (i) of Section | ||||||
3 | 20-10 of the Illinois Procurement Code, shall track and | ||||||
4 | award equity actions in bids for the renewable energy | ||||||
5 | credit procurements, Adjustable Block solar program, | ||||||
6 | community renewable generation program, and Illinois Solar | ||||||
7 | for All Program using a points system totaling a maximum | ||||||
8 | of 260 points. This system shall consider both equity | ||||||
9 | actions to meet the goals described in paragraph (7), and | ||||||
10 | the bid prices, as follows: | ||||||
11 | (A) Hiring Equity Action (up to 20 points): | ||||||
12 | awarded based on the percentage of the company's or | ||||||
13 | entity's workforce (measured by full-time equivalents | ||||||
14 | as defined by the Government Accountability Office of | ||||||
15 | the United States Congress) who are BIPOC and who are | ||||||
16 | paid at or above the prevailing wage; one point shall | ||||||
17 | be awarded for each 5% of the workforce which is | ||||||
18 | composed of BIPOC who are also paid at or above the | ||||||
19 | prevailing wage, up to a maximum of 20 points. | ||||||
20 | (B) Clean Jobs Workforce Hubs Action and Returning | ||||||
21 | Residents Action (up to 20 points): awarded based on | ||||||
22 | the percentage of the workers associated with the | ||||||
23 | project who are graduates or trainees from the Clean | ||||||
24 | Jobs Workforce Hubs Network Program, or the Returning | ||||||
25 | Residents Clean Jobs Training Program, or equivalent | ||||||
26 | certification, and paid at or above the prevailing |
| |||||||
| |||||||
1 | wage; one point shall be awarded for each 5% of the | ||||||
2 | workforce which is composed of Clean Jobs Workforce | ||||||
3 | Hubs Network Program graduates or trainees or | ||||||
4 | Returning Residents Clean Jobs Training Program | ||||||
5 | graduates or trainees who are also paid a living wage, | ||||||
6 | up to a maximum of 20 points. | ||||||
7 | (C) Minority Business Enterprise Action (30 | ||||||
8 | points): being an entity defined as a minority-owned | ||||||
9 | business under Section 2 of the Business Enterprise | ||||||
10 | for Minorities, Women, and Persons with Disabilities | ||||||
11 | Act or (ii) an entity, including a business, a | ||||||
12 | nonprofit, or a worker-owned cooperative registered | ||||||
13 | with other state, regional, or local programs intended | ||||||
14 | to certify minority-owned businesses. | ||||||
15 | (D) Contracting Equity Action (20 points): awarded | ||||||
16 | based on the percentage of the company's or entity's | ||||||
17 | subcontractors or vendors that are BIPOC-owned | ||||||
18 | businesses, defined as a minority owned-business or a | ||||||
19 | woman-owned business under Section 2 of the Business | ||||||
20 | Enterprise for Minorities, Women, and Persons with | ||||||
21 | Disabilities Act, or awarded based on the percentage | ||||||
22 | of the subcontracted workers associated with the | ||||||
23 | project, including from all subcontractors and vendors | ||||||
24 | that are Black, indigenous, and people of color who | ||||||
25 | are paid at or above the prevailing wage; 5 points | ||||||
26 | shall be awarded for each 10% of either subcontractors |
| |||||||
| |||||||
1 | or subcontractors' workers who are Black, indigenous, | ||||||
2 | and people of color, whichever is greater, up to a | ||||||
3 | maximum of 20 points. Bids may not be eligible for | ||||||
4 | points under this subjection unless they plan to use | ||||||
5 | subcontractors. If a company or entity does not use | ||||||
6 | subcontractors, points awarded for the Contracting | ||||||
7 | Equity Action shall be equivalent to the point value | ||||||
8 | awarded for the Hiring Equity Action under | ||||||
9 | subparagraph (A). | ||||||
10 | (E) Expanding Clean Energy Entrepreneurship Action | ||||||
11 | (20 points): awarded to entities who are current or | ||||||
12 | former participant contractors in the Expanding Clean | ||||||
13 | Energy Entrepreneurship and Contractor Incubators | ||||||
14 | Network Program or current or former participants in | ||||||
15 | the Illinois Clean Energy Black, Indigenous, and | ||||||
16 | People of Color Primes Contractor Accelerator Program. | ||||||
17 | (F) Community Benefits Action (15 points): (i) for | ||||||
18 | projects 100 kW in size or larger, project has an | ||||||
19 | executed Community Benefits Agreement that could | ||||||
20 | include, but is not limited to, a commitment to hire | ||||||
21 | local workers, union workers, energy workers | ||||||
22 | transitioning to clean energy jobs, Clean Jobs | ||||||
23 | Workforce Hubs Network Program graduates, or current | ||||||
24 | or former participant contractors in the Expanding | ||||||
25 | Clean Energy Entrepreneurship and Contractor | ||||||
26 | Incubators Network Program a commitment to pay workers |
| |||||||
| |||||||
1 | at or above the prevailing wage, and a commitment to | ||||||
2 | give communities ownership opportunities in clean | ||||||
3 | energy projects; and (ii) for projects under 100 kW in | ||||||
4 | size, companies pay their workforces at or above the | ||||||
5 | prevailing wage. | ||||||
6 | (G) Small Business Action (15 points): company's | ||||||
7 | workforce is composed of 3 or fewer full-time | ||||||
8 | employees (measured by full-time equivalents as | ||||||
9 | defined by the Government Accountability Office of the | ||||||
10 | United States Congress). | ||||||
11 | (H) Labor Peace Agreement Action (10 points): (i) | ||||||
12 | for a bidder with 20 or more employees: the bidder | ||||||
13 | attests that the bidder has entered into a labor peace | ||||||
14 | agreement, will abide by the terms of the agreement, | ||||||
15 | and will submit a copy of the page of the labor peace | ||||||
16 | agreement that contains the signatures of the union | ||||||
17 | representative and the installer, or (ii) for a bidder | ||||||
18 | that is a party to a labor peace agreement with a bona | ||||||
19 | fide labor organization that currently represents, or | ||||||
20 | is actively seeking to represent energy efficiency | ||||||
21 | installers and other workers in Illinois, or (iii) the | ||||||
22 | bidder submits an attestation affirming that the | ||||||
23 | bidder will use best efforts to use union labor in the | ||||||
24 | bidder's projects and in the construction or retrofit | ||||||
25 | of the facilities associated with the bidder's | ||||||
26 | renewable energy operations, where applicable. |
| |||||||
| |||||||
1 | (I) Price of bid (130 points): as scored by the | ||||||
2 | Illinois Power Agency. | ||||||
3 | Bids scoring fewer than 135 points shall not be | ||||||
4 | awarded contracts. | ||||||
5 | (8) To the greatest extent practical, the Agency shall
| ||||||
6 | give preference to the procurement of renewable energy | ||||||
7 | credits
from proposed utility-scale projects that are | ||||||
8 | located in
Clean Energy Empowerment Zones as defined in | ||||||
9 | the Energy
Community Reinvestment Act. If this paragraph | ||||||
10 | (8)
conflicts with other provisions of law or the Agency
| ||||||
11 | determines that full compliance with this paragraph (8)
| ||||||
12 | would be unreasonably costly or administratively
| ||||||
13 | impractical, the Agency shall be authorized to propose
| ||||||
14 | alternative approaches to achieve development of renewable
| ||||||
15 | energy resources in Clean Energy Empowerment Zones or seek
| ||||||
16 | an exemption from this requirement from the Commission. | ||||||
17 | (d) Clean coal portfolio standard. | ||||||
18 | (1) The procurement plans shall include electricity | ||||||
19 | generated using clean coal. Each utility shall enter into | ||||||
20 | one or more sourcing agreements with the initial clean | ||||||
21 | coal facility, as provided in paragraph (3) of this | ||||||
22 | subsection (d), covering electricity generated by the | ||||||
23 | initial clean coal facility representing at least 5% of | ||||||
24 | each utility's total supply to serve the load of eligible | ||||||
25 | retail customers in 2015 and each year thereafter, as | ||||||
26 | described in paragraph (3) of this subsection (d), subject |
| |||||||
| |||||||
1 | to the limits specified in paragraph (2) of this | ||||||
2 | subsection (d). It is the goal of the State that by January | ||||||
3 | 1, 2025, 25% of the electricity used in the State shall be | ||||||
4 | generated by cost-effective clean coal facilities. For | ||||||
5 | purposes of this subsection (d), "cost-effective" means | ||||||
6 | that the expenditures pursuant to such sourcing agreements | ||||||
7 | do not cause the limit stated in paragraph (2) of this | ||||||
8 | subsection (d) to be exceeded and do not exceed cost-based | ||||||
9 | benchmarks, which shall be developed to assess all | ||||||
10 | expenditures pursuant to such sourcing agreements covering | ||||||
11 | electricity generated by clean coal facilities, other than | ||||||
12 | the initial clean coal facility, by the procurement | ||||||
13 | administrator, in consultation with the Commission staff, | ||||||
14 | Agency staff, and the procurement monitor and shall be | ||||||
15 | subject to Commission review and approval. | ||||||
16 | A utility party to a sourcing agreement shall | ||||||
17 | immediately retire any emission credits that it receives | ||||||
18 | in connection with the electricity covered by such | ||||||
19 | agreement. | ||||||
20 | Utilities shall maintain adequate records documenting | ||||||
21 | the purchases under the sourcing agreement to comply with | ||||||
22 | this subsection (d) and shall file an accounting with the | ||||||
23 | load forecast that must be filed with the Agency by July 15 | ||||||
24 | of each year, in accordance with subsection (d) of Section | ||||||
25 | 16-111.5 of the Public Utilities Act. | ||||||
26 | A utility shall be deemed to have complied with the |
| |||||||
| |||||||
1 | clean coal portfolio standard specified in this subsection | ||||||
2 | (d) if the utility enters into a sourcing agreement as | ||||||
3 | required by this subsection (d). | ||||||
4 | (2) For purposes of this subsection (d), the required | ||||||
5 | execution of sourcing agreements with the initial clean | ||||||
6 | coal facility for a particular year shall be measured as a | ||||||
7 | percentage of the actual amount of electricity | ||||||
8 | (megawatt-hours) supplied by the electric utility to | ||||||
9 | eligible retail customers in the planning year ending | ||||||
10 | immediately prior to the agreement's execution. For | ||||||
11 | purposes of this subsection (d), the amount paid per | ||||||
12 | kilowatthour means the total amount paid for electric | ||||||
13 | service expressed on a per kilowatthour basis. For | ||||||
14 | purposes of this subsection (d), the total amount paid for | ||||||
15 | electric service includes without limitation amounts paid | ||||||
16 | for supply, transmission, distribution, surcharges and | ||||||
17 | add-on taxes. | ||||||
18 | Notwithstanding the requirements of this subsection | ||||||
19 | (d), the total amount paid under sourcing agreements with | ||||||
20 | clean coal facilities pursuant to the procurement plan for | ||||||
21 | any given year shall be reduced by an amount necessary to | ||||||
22 | limit the annual estimated average net increase due to the | ||||||
23 | costs of these resources included in the amounts paid by | ||||||
24 | eligible retail customers in connection with electric | ||||||
25 | service to: | ||||||
26 | (A) in 2010, no more than 0.5% of the amount paid |
| |||||||
| |||||||
1 | per kilowatthour by those customers during the year | ||||||
2 | ending May 31, 2009; | ||||||
3 | (B) in 2011, the greater of an additional 0.5% of | ||||||
4 | the amount paid per kilowatthour by those customers | ||||||
5 | during the year ending May 31, 2010 or 1% of the amount | ||||||
6 | paid per kilowatthour by those customers during the | ||||||
7 | year ending May 31, 2009; | ||||||
8 | (C) in 2012, the greater of an additional 0.5% of | ||||||
9 | the amount paid per kilowatthour by those customers | ||||||
10 | during the year ending May 31, 2011 or 1.5% of the | ||||||
11 | amount paid per kilowatthour by those customers during | ||||||
12 | the year ending May 31, 2009; | ||||||
13 | (D) in 2013, the greater of an additional 0.5% of | ||||||
14 | the amount paid per kilowatthour by those customers | ||||||
15 | during the year ending May 31, 2012 or 2% of the amount | ||||||
16 | paid per kilowatthour by those customers during the | ||||||
17 | year ending May 31, 2009; and | ||||||
18 | (E) thereafter, the total amount paid under | ||||||
19 | sourcing agreements with clean coal facilities | ||||||
20 | pursuant to the procurement plan for any single year | ||||||
21 | shall be reduced by an amount necessary to limit the | ||||||
22 | estimated average net increase due to the cost of | ||||||
23 | these resources included in the amounts paid by | ||||||
24 | eligible retail customers in connection with electric | ||||||
25 | service to no more than the greater of (i) 2.015% of | ||||||
26 | the amount paid per kilowatthour by those customers |
| |||||||
| |||||||
1 | during the year ending May 31, 2009 or (ii) the | ||||||
2 | incremental amount per kilowatthour paid for these | ||||||
3 | resources in 2013. These requirements may be altered | ||||||
4 | only as provided by statute. | ||||||
5 | No later than June 30, 2015, the Commission shall | ||||||
6 | review the limitation on the total amount paid under | ||||||
7 | sourcing agreements, if any, with clean coal facilities | ||||||
8 | pursuant to this subsection (d) and report to the General | ||||||
9 | Assembly its findings as to whether that limitation unduly | ||||||
10 | constrains the amount of electricity generated by | ||||||
11 | cost-effective clean coal facilities that is covered by | ||||||
12 | sourcing agreements. | ||||||
13 | (3) Initial clean coal facility. In order to promote | ||||||
14 | development of clean coal facilities in Illinois, each | ||||||
15 | electric utility subject to this Section shall execute a | ||||||
16 | sourcing agreement to source electricity from a proposed | ||||||
17 | clean coal facility in Illinois (the "initial clean coal | ||||||
18 | facility") that will have a nameplate capacity of at least | ||||||
19 | 500 MW when commercial operation commences, that has a | ||||||
20 | final Clean Air Act permit on June 1, 2009 (the effective | ||||||
21 | date of Public Act 95-1027), and that will meet the | ||||||
22 | definition of clean coal facility in Section 1-10 of this | ||||||
23 | Act when commercial operation commences. The sourcing | ||||||
24 | agreements with this initial clean coal facility shall be | ||||||
25 | subject to both approval of the initial clean coal | ||||||
26 | facility by the General Assembly and satisfaction of the |
| |||||||
| |||||||
1 | requirements of paragraph (4) of this subsection (d) and | ||||||
2 | shall be executed within 90 days after any such approval | ||||||
3 | by the General Assembly. The Agency and the Commission | ||||||
4 | shall have authority to inspect all books and records | ||||||
5 | associated with the initial clean coal facility during the | ||||||
6 | term of such a sourcing agreement. A utility's sourcing | ||||||
7 | agreement for electricity produced by the initial clean | ||||||
8 | coal facility shall include: | ||||||
9 | (A) a formula contractual price (the "contract | ||||||
10 | price") approved pursuant to paragraph (4) of this | ||||||
11 | subsection (d), which shall: | ||||||
12 | (i) be determined using a cost of service | ||||||
13 | methodology employing either a level or deferred | ||||||
14 | capital recovery component, based on a capital | ||||||
15 | structure consisting of 45% equity and 55% debt, | ||||||
16 | and a return on equity as may be approved by the | ||||||
17 | Federal Energy Regulatory Commission, which in any | ||||||
18 | case may not exceed the lower of 11.5% or the rate | ||||||
19 | of return approved by the General Assembly | ||||||
20 | pursuant to paragraph (4) of this subsection (d); | ||||||
21 | and | ||||||
22 | (ii) provide that all miscellaneous net | ||||||
23 | revenue, including but not limited to net revenue | ||||||
24 | from the sale of emission allowances, if any, | ||||||
25 | substitute natural gas, if any, grants or other | ||||||
26 | support provided by the State of Illinois or the |
| |||||||
| |||||||
1 | United States Government, firm transmission | ||||||
2 | rights, if any, by-products produced by the | ||||||
3 | facility, energy or capacity derived from the | ||||||
4 | facility and not covered by a sourcing agreement | ||||||
5 | pursuant to paragraph (3) of this subsection (d) | ||||||
6 | or item (5) of subsection (d) of Section 16-115 of | ||||||
7 | the Public Utilities Act, whether generated from | ||||||
8 | the synthesis gas derived from coal, from SNG, or | ||||||
9 | from natural gas, shall be credited against the | ||||||
10 | revenue requirement for this initial clean coal | ||||||
11 | facility; | ||||||
12 | (B) power purchase provisions, which shall: | ||||||
13 | (i) provide that the utility party to such | ||||||
14 | sourcing agreement shall pay the contract price | ||||||
15 | for electricity delivered under such sourcing | ||||||
16 | agreement; | ||||||
17 | (ii) require delivery of electricity to the | ||||||
18 | regional transmission organization market of the | ||||||
19 | utility that is party to such sourcing agreement; | ||||||
20 | (iii) require the utility party to such | ||||||
21 | sourcing agreement to buy from the initial clean | ||||||
22 | coal facility in each hour an amount of energy | ||||||
23 | equal to all clean coal energy made available from | ||||||
24 | the initial clean coal facility during such hour | ||||||
25 | times a fraction, the numerator of which is such | ||||||
26 | utility's retail market sales of electricity |
| |||||||
| |||||||
1 | (expressed in kilowatthours sold) in the State | ||||||
2 | during the prior calendar month and the | ||||||
3 | denominator of which is the total retail market | ||||||
4 | sales of electricity (expressed in kilowatthours | ||||||
5 | sold) in the State by utilities during such prior | ||||||
6 | month and the sales of electricity (expressed in | ||||||
7 | kilowatthours sold) in the State by alternative | ||||||
8 | retail electric suppliers during such prior month | ||||||
9 | that are subject to the requirements of this | ||||||
10 | subsection (d) and paragraph (5) of subsection (d) | ||||||
11 | of Section 16-115 of the Public Utilities Act, | ||||||
12 | provided that the amount purchased by the utility | ||||||
13 | in any year will be limited by paragraph (2) of | ||||||
14 | this subsection (d); and | ||||||
15 | (iv) be considered pre-existing contracts in | ||||||
16 | such utility's procurement plans for eligible | ||||||
17 | retail customers; | ||||||
18 | (C) contract for differences provisions, which | ||||||
19 | shall: | ||||||
20 | (i) require the utility party to such sourcing | ||||||
21 | agreement to contract with the initial clean coal | ||||||
22 | facility in each hour with respect to an amount of | ||||||
23 | energy equal to all clean coal energy made | ||||||
24 | available from the initial clean coal facility | ||||||
25 | during such hour times a fraction, the numerator | ||||||
26 | of which is such utility's retail market sales of |
| |||||||
| |||||||
1 | electricity (expressed in kilowatthours sold) in | ||||||
2 | the utility's service territory in the State | ||||||
3 | during the prior calendar month and the | ||||||
4 | denominator of which is the total retail market | ||||||
5 | sales of electricity (expressed in kilowatthours | ||||||
6 | sold) in the State by utilities during such prior | ||||||
7 | month and the sales of electricity (expressed in | ||||||
8 | kilowatthours sold) in the State by alternative | ||||||
9 | retail electric suppliers during such prior month | ||||||
10 | that are subject to the requirements of this | ||||||
11 | subsection (d) and paragraph (5) of subsection (d) | ||||||
12 | of Section 16-115 of the Public Utilities Act, | ||||||
13 | provided that the amount paid by the utility in | ||||||
14 | any year will be limited by paragraph (2) of this | ||||||
15 | subsection (d); | ||||||
16 | (ii) provide that the utility's payment | ||||||
17 | obligation in respect of the quantity of | ||||||
18 | electricity determined pursuant to the preceding | ||||||
19 | clause (i) shall be limited to an amount equal to | ||||||
20 | (1) the difference between the contract price | ||||||
21 | determined pursuant to subparagraph (A) of | ||||||
22 | paragraph (3) of this subsection (d) and the | ||||||
23 | day-ahead price for electricity delivered to the | ||||||
24 | regional transmission organization market of the | ||||||
25 | utility that is party to such sourcing agreement | ||||||
26 | (or any successor delivery point at which such |
| |||||||
| |||||||
1 | utility's supply obligations are financially | ||||||
2 | settled on an hourly basis) (the "reference | ||||||
3 | price") on the day preceding the day on which the | ||||||
4 | electricity is delivered to the initial clean coal | ||||||
5 | facility busbar, multiplied by (2) the quantity of | ||||||
6 | electricity determined pursuant to the preceding | ||||||
7 | clause (i); and | ||||||
8 | (iii) not require the utility to take physical | ||||||
9 | delivery of the electricity produced by the | ||||||
10 | facility; | ||||||
11 | (D) general provisions, which shall: | ||||||
12 | (i) specify a term of no more than 30 years, | ||||||
13 | commencing on the commercial operation date of the | ||||||
14 | facility; | ||||||
15 | (ii) provide that utilities shall maintain | ||||||
16 | adequate records documenting purchases under the | ||||||
17 | sourcing agreements entered into to comply with | ||||||
18 | this subsection (d) and shall file an accounting | ||||||
19 | with the load forecast that must be filed with the | ||||||
20 | Agency by July 15 of each year, in accordance with | ||||||
21 | subsection (d) of Section 16-111.5 of the Public | ||||||
22 | Utilities Act; | ||||||
23 | (iii) provide that all costs associated with | ||||||
24 | the initial clean coal facility will be | ||||||
25 | periodically reported to the Federal Energy | ||||||
26 | Regulatory Commission and to purchasers in |
| |||||||
| |||||||
1 | accordance with applicable laws governing | ||||||
2 | cost-based wholesale power contracts; | ||||||
3 | (iv) permit the Illinois Power Agency to | ||||||
4 | assume ownership of the initial clean coal | ||||||
5 | facility, without monetary consideration and | ||||||
6 | otherwise on reasonable terms acceptable to the | ||||||
7 | Agency, if the Agency so requests no less than 3 | ||||||
8 | years prior to the end of the stated contract | ||||||
9 | term; | ||||||
10 | (v) require the owner of the initial clean | ||||||
11 | coal facility to provide documentation to the | ||||||
12 | Commission each year, starting in the facility's | ||||||
13 | first year of commercial operation, accurately | ||||||
14 | reporting the quantity of carbon emissions from | ||||||
15 | the facility that have been captured and | ||||||
16 | sequestered and report any quantities of carbon | ||||||
17 | released from the site or sites at which carbon | ||||||
18 | emissions were sequestered in prior years, based | ||||||
19 | on continuous monitoring of such sites. If, in any | ||||||
20 | year after the first year of commercial operation, | ||||||
21 | the owner of the facility fails to demonstrate | ||||||
22 | that the initial clean coal facility captured and | ||||||
23 | sequestered at least 50% of the total carbon | ||||||
24 | emissions that the facility would otherwise emit | ||||||
25 | or that sequestration of emissions from prior | ||||||
26 | years has failed, resulting in the release of |
| |||||||
| |||||||
1 | carbon dioxide into the atmosphere, the owner of | ||||||
2 | the facility must offset excess emissions. Any | ||||||
3 | such carbon offsets must be permanent, additional, | ||||||
4 | verifiable, real, located within the State of | ||||||
5 | Illinois, and legally and practicably enforceable. | ||||||
6 | The cost of such offsets for the facility that are | ||||||
7 | not recoverable shall not exceed $15 million in | ||||||
8 | any given year. No costs of any such purchases of | ||||||
9 | carbon offsets may be recovered from a utility or | ||||||
10 | its customers. All carbon offsets purchased for | ||||||
11 | this purpose and any carbon emission credits | ||||||
12 | associated with sequestration of carbon from the | ||||||
13 | facility must be permanently retired. The initial | ||||||
14 | clean coal facility shall not forfeit its | ||||||
15 | designation as a clean coal facility if the | ||||||
16 | facility fails to fully comply with the applicable | ||||||
17 | carbon sequestration requirements in any given | ||||||
18 | year, provided the requisite offsets are | ||||||
19 | purchased. However, the Attorney General, on | ||||||
20 | behalf of the People of the State of Illinois, may | ||||||
21 | specifically enforce the facility's sequestration | ||||||
22 | requirement and the other terms of this contract | ||||||
23 | provision. Compliance with the sequestration | ||||||
24 | requirements and offset purchase requirements | ||||||
25 | specified in paragraph (3) of this subsection (d) | ||||||
26 | shall be reviewed annually by an independent |
| |||||||
| |||||||
1 | expert retained by the owner of the initial clean | ||||||
2 | coal facility, with the advance written approval | ||||||
3 | of the Attorney General. The Commission may, in | ||||||
4 | the course of the review specified in item (vii), | ||||||
5 | reduce the allowable return on equity for the | ||||||
6 | facility if the facility willfully fails to comply | ||||||
7 | with the carbon capture and sequestration | ||||||
8 | requirements set forth in this item (v); | ||||||
9 | (vi) include limits on, and accordingly | ||||||
10 | provide for modification of, the amount the | ||||||
11 | utility is required to source under the sourcing | ||||||
12 | agreement consistent with paragraph (2) of this | ||||||
13 | subsection (d); | ||||||
14 | (vii) require Commission review: (1) to | ||||||
15 | determine the justness, reasonableness, and | ||||||
16 | prudence of the inputs to the formula referenced | ||||||
17 | in subparagraphs (A)(i) through (A)(iii) of | ||||||
18 | paragraph (3) of this subsection (d), prior to an | ||||||
19 | adjustment in those inputs including, without | ||||||
20 | limitation, the capital structure and return on | ||||||
21 | equity, fuel costs, and other operations and | ||||||
22 | maintenance costs and (2) to approve the costs to | ||||||
23 | be passed through to customers under the sourcing | ||||||
24 | agreement by which the utility satisfies its | ||||||
25 | statutory obligations. Commission review shall | ||||||
26 | occur no less than every 3 years, regardless of |
| |||||||
| |||||||
1 | whether any adjustments have been proposed, and | ||||||
2 | shall be completed within 9 months; | ||||||
3 | (viii) limit the utility's obligation to such | ||||||
4 | amount as the utility is allowed to recover | ||||||
5 | through tariffs filed with the Commission, | ||||||
6 | provided that neither the clean coal facility nor | ||||||
7 | the utility waives any right to assert federal | ||||||
8 | pre-emption or any other argument in response to a | ||||||
9 | purported disallowance of recovery costs; | ||||||
10 | (ix) limit the utility's or alternative retail | ||||||
11 | electric supplier's obligation to incur any | ||||||
12 | liability until such time as the facility is in | ||||||
13 | commercial operation and generating power and | ||||||
14 | energy and such power and energy is being | ||||||
15 | delivered to the facility busbar; | ||||||
16 | (x) provide that the owner or owners of the | ||||||
17 | initial clean coal facility, which is the | ||||||
18 | counterparty to such sourcing agreement, shall | ||||||
19 | have the right from time to time to elect whether | ||||||
20 | the obligations of the utility party thereto shall | ||||||
21 | be governed by the power purchase provisions or | ||||||
22 | the contract for differences provisions; | ||||||
23 | (xi) append documentation showing that the | ||||||
24 | formula rate and contract, insofar as they relate | ||||||
25 | to the power purchase provisions, have been | ||||||
26 | approved by the Federal Energy Regulatory |
| |||||||
| |||||||
1 | Commission pursuant to Section 205 of the Federal | ||||||
2 | Power Act; | ||||||
3 | (xii) provide that any changes to the terms of | ||||||
4 | the contract, insofar as such changes relate to | ||||||
5 | the power purchase provisions, are subject to | ||||||
6 | review under the public interest standard applied | ||||||
7 | by the Federal Energy Regulatory Commission | ||||||
8 | pursuant to Sections 205 and 206 of the Federal | ||||||
9 | Power Act; and | ||||||
10 | (xiii) conform with customary lender | ||||||
11 | requirements in power purchase agreements used as | ||||||
12 | the basis for financing non-utility generators. | ||||||
13 | (4) Effective date of sourcing agreements with the | ||||||
14 | initial clean coal facility. Any proposed sourcing | ||||||
15 | agreement with the initial clean coal facility shall not | ||||||
16 | become effective unless the following reports are prepared | ||||||
17 | and submitted and authorizations and approvals obtained: | ||||||
18 | (i) Facility cost report. The owner of the initial | ||||||
19 | clean coal facility shall submit to the Commission, | ||||||
20 | the Agency, and the General Assembly a front-end | ||||||
21 | engineering and design study, a facility cost report, | ||||||
22 | method of financing (including but not limited to | ||||||
23 | structure and associated costs), and an operating and | ||||||
24 | maintenance cost quote for the facility (collectively | ||||||
25 | "facility cost report"), which shall be prepared in | ||||||
26 | accordance with the requirements of this paragraph (4) |
| |||||||
| |||||||
1 | of subsection (d) of this Section, and shall provide | ||||||
2 | the Commission and the Agency access to the work | ||||||
3 | papers, relied upon documents, and any other backup | ||||||
4 | documentation related to the facility cost report. | ||||||
5 | (ii) Commission report. Within 6 months following | ||||||
6 | receipt of the facility cost report, the Commission, | ||||||
7 | in consultation with the Agency, shall submit a report | ||||||
8 | to the General Assembly setting forth its analysis of | ||||||
9 | the facility cost report. Such report shall include, | ||||||
10 | but not be limited to, a comparison of the costs | ||||||
11 | associated with electricity generated by the initial | ||||||
12 | clean coal facility to the costs associated with | ||||||
13 | electricity generated by other types of generation | ||||||
14 | facilities, an analysis of the rate impacts on | ||||||
15 | residential and small business customers over the life | ||||||
16 | of the sourcing agreements, and an analysis of the | ||||||
17 | likelihood that the initial clean coal facility will | ||||||
18 | commence commercial operation by and be delivering | ||||||
19 | power to the facility's busbar by 2016. To assist in | ||||||
20 | the preparation of its report, the Commission, in | ||||||
21 | consultation with the Agency, may hire one or more | ||||||
22 | experts or consultants, the costs of which shall be | ||||||
23 | paid for by the owner of the initial clean coal | ||||||
24 | facility. The Commission and Agency may begin the | ||||||
25 | process of selecting such experts or consultants prior | ||||||
26 | to receipt of the facility cost report. |
| |||||||
| |||||||
1 | (iii) General Assembly approval. The proposed | ||||||
2 | sourcing agreements shall not take effect unless, | ||||||
3 | based on the facility cost report and the Commission's | ||||||
4 | report, the General Assembly enacts authorizing | ||||||
5 | legislation approving (A) the projected price, stated | ||||||
6 | in cents per kilowatthour, to be charged for | ||||||
7 | electricity generated by the initial clean coal | ||||||
8 | facility, (B) the projected impact on residential and | ||||||
9 | small business customers' bills over the life of the | ||||||
10 | sourcing agreements, and (C) the maximum allowable | ||||||
11 | return on equity for the project; and | ||||||
12 | (iv) Commission review. If the General Assembly | ||||||
13 | enacts authorizing legislation pursuant to | ||||||
14 | subparagraph (iii) approving a sourcing agreement, the | ||||||
15 | Commission shall, within 90 days of such enactment, | ||||||
16 | complete a review of such sourcing agreement. During | ||||||
17 | such time period, the Commission shall implement any | ||||||
18 | directive of the General Assembly, resolve any | ||||||
19 | disputes between the parties to the sourcing agreement | ||||||
20 | concerning the terms of such agreement, approve the | ||||||
21 | form of such agreement, and issue an order finding | ||||||
22 | that the sourcing agreement is prudent and reasonable. | ||||||
23 | The facility cost report shall be prepared as follows: | ||||||
24 | (A) The facility cost report shall be prepared by | ||||||
25 | duly licensed engineering and construction firms | ||||||
26 | detailing the estimated capital costs payable to one |
| |||||||
| |||||||
1 | or more contractors or suppliers for the engineering, | ||||||
2 | procurement and construction of the components | ||||||
3 | comprising the initial clean coal facility and the | ||||||
4 | estimated costs of operation and maintenance of the | ||||||
5 | facility. The facility cost report shall include: | ||||||
6 | (i) an estimate of the capital cost of the | ||||||
7 | core plant based on one or more front end | ||||||
8 | engineering and design studies for the | ||||||
9 | gasification island and related facilities. The | ||||||
10 | core plant shall include all civil, structural, | ||||||
11 | mechanical, electrical, control, and safety | ||||||
12 | systems. | ||||||
13 | (ii) an estimate of the capital cost of the | ||||||
14 | balance of the plant, including any capital costs | ||||||
15 | associated with sequestration of carbon dioxide | ||||||
16 | emissions and all interconnects and interfaces | ||||||
17 | required to operate the facility, such as | ||||||
18 | transmission of electricity, construction or | ||||||
19 | backfeed power supply, pipelines to transport | ||||||
20 | substitute natural gas or carbon dioxide, potable | ||||||
21 | water supply, natural gas supply, water supply, | ||||||
22 | water discharge, landfill, access roads, and coal | ||||||
23 | delivery. | ||||||
24 | The quoted construction costs shall be expressed | ||||||
25 | in nominal dollars as of the date that the quote is | ||||||
26 | prepared and shall include capitalized financing costs |
| |||||||
| |||||||
1 | during construction,
taxes, insurance, and other | ||||||
2 | owner's costs, and an assumed escalation in materials | ||||||
3 | and labor beyond the date as of which the construction | ||||||
4 | cost quote is expressed. | ||||||
5 | (B) The front end engineering and design study for | ||||||
6 | the gasification island and the cost study for the | ||||||
7 | balance of plant shall include sufficient design work | ||||||
8 | to permit quantification of major categories of | ||||||
9 | materials, commodities and labor hours, and receipt of | ||||||
10 | quotes from vendors of major equipment required to | ||||||
11 | construct and operate the clean coal facility. | ||||||
12 | (C) The facility cost report shall also include an | ||||||
13 | operating and maintenance cost quote that will provide | ||||||
14 | the estimated cost of delivered fuel, personnel, | ||||||
15 | maintenance contracts, chemicals, catalysts, | ||||||
16 | consumables, spares, and other fixed and variable | ||||||
17 | operations and maintenance costs. The delivered fuel | ||||||
18 | cost estimate will be provided by a recognized third | ||||||
19 | party expert or experts in the fuel and transportation | ||||||
20 | industries. The balance of the operating and | ||||||
21 | maintenance cost quote, excluding delivered fuel | ||||||
22 | costs, will be developed based on the inputs provided | ||||||
23 | by duly licensed engineering and construction firms | ||||||
24 | performing the construction cost quote, potential | ||||||
25 | vendors under long-term service agreements and plant | ||||||
26 | operating agreements, or recognized third party plant |
| |||||||
| |||||||
1 | operator or operators. | ||||||
2 | The operating and maintenance cost quote | ||||||
3 | (including the cost of the front end engineering and | ||||||
4 | design study) shall be expressed in nominal dollars as | ||||||
5 | of the date that the quote is prepared and shall | ||||||
6 | include taxes, insurance, and other owner's costs, and | ||||||
7 | an assumed escalation in materials and labor beyond | ||||||
8 | the date as of which the operating and maintenance | ||||||
9 | cost quote is expressed. | ||||||
10 | (D) The facility cost report shall also include an | ||||||
11 | analysis of the initial clean coal facility's ability | ||||||
12 | to deliver power and energy into the applicable | ||||||
13 | regional transmission organization markets and an | ||||||
14 | analysis of the expected capacity factor for the | ||||||
15 | initial clean coal facility. | ||||||
16 | (E) Amounts paid to third parties unrelated to the | ||||||
17 | owner or owners of the initial clean coal facility to | ||||||
18 | prepare the core plant construction cost quote, | ||||||
19 | including the front end engineering and design study, | ||||||
20 | and the operating and maintenance cost quote will be | ||||||
21 | reimbursed through Coal Development Bonds. | ||||||
22 | (5) Re-powering and retrofitting coal-fired power | ||||||
23 | plants previously owned by Illinois utilities to qualify | ||||||
24 | as clean coal facilities. During the 2009 procurement | ||||||
25 | planning process and thereafter, the Agency and the | ||||||
26 | Commission shall consider sourcing agreements covering |
| |||||||
| |||||||
1 | electricity generated by power plants that were previously | ||||||
2 | owned by Illinois utilities and that have been or will be | ||||||
3 | converted into clean coal facilities, as defined by | ||||||
4 | Section 1-10 of this Act. Pursuant to such procurement | ||||||
5 | planning process, the owners of such facilities may | ||||||
6 | propose to the Agency sourcing agreements with utilities | ||||||
7 | and alternative retail electric suppliers required to | ||||||
8 | comply with subsection (d) of this Section and item (5) of | ||||||
9 | subsection (d) of Section 16-115 of the Public Utilities | ||||||
10 | Act, covering electricity generated by such facilities. In | ||||||
11 | the case of sourcing agreements that are power purchase | ||||||
12 | agreements, the contract price for electricity sales shall | ||||||
13 | be established on a cost of service basis. In the case of | ||||||
14 | sourcing agreements that are contracts for differences, | ||||||
15 | the contract price from which the reference price is | ||||||
16 | subtracted shall be established on a cost of service | ||||||
17 | basis. The Agency and the Commission may approve any such | ||||||
18 | utility sourcing agreements that do not exceed cost-based | ||||||
19 | benchmarks developed by the procurement administrator, in | ||||||
20 | consultation with the Commission staff, Agency staff and | ||||||
21 | the procurement monitor, subject to Commission review and | ||||||
22 | approval. The Commission shall have authority to inspect | ||||||
23 | all books and records associated with these clean coal | ||||||
24 | facilities during the term of any such contract. | ||||||
25 | (6) Costs incurred under this subsection (d) or | ||||||
26 | pursuant to a contract entered into under this subsection |
| |||||||
| |||||||
1 | (d) shall be deemed prudently incurred and reasonable in | ||||||
2 | amount and the electric utility shall be entitled to full | ||||||
3 | cost recovery pursuant to the tariffs filed with the | ||||||
4 | Commission. | ||||||
5 | (d-5) Zero emission standard. | ||||||
6 | (1) Beginning with the delivery year commencing on | ||||||
7 | June 1, 2017, the Agency shall, for electric utilities | ||||||
8 | that serve at least 100,000 retail customers in this | ||||||
9 | State, procure contracts with zero emission facilities | ||||||
10 | that are reasonably capable of generating cost-effective | ||||||
11 | zero emission credits in an amount approximately equal to | ||||||
12 | 16% of the actual amount of electricity delivered by each | ||||||
13 | electric utility to retail customers in the State during | ||||||
14 | calendar year 2014. For an electric utility serving fewer | ||||||
15 | than 100,000 retail customers in this State that | ||||||
16 | requested, under Section 16-111.5 of the Public Utilities | ||||||
17 | Act, that the Agency procure power and energy for all or a | ||||||
18 | portion of the utility's Illinois load for the delivery | ||||||
19 | year commencing June 1, 2016, the Agency shall procure | ||||||
20 | contracts with zero emission facilities that are | ||||||
21 | reasonably capable of generating cost-effective zero | ||||||
22 | emission credits in an amount approximately equal to 16% | ||||||
23 | of the portion of power and energy to be procured by the | ||||||
24 | Agency for the utility. The duration of the contracts | ||||||
25 | procured under this subsection (d-5) shall be for a term | ||||||
26 | of 10 years ending May 31, 2027. The quantity of zero |
| |||||||
| |||||||
1 | emission credits to be procured under the contracts shall | ||||||
2 | be all of the zero emission credits generated by the zero | ||||||
3 | emission facility in each delivery year; however, if the | ||||||
4 | zero emission facility is owned by more than one entity, | ||||||
5 | then the quantity of zero emission credits to be procured | ||||||
6 | under the contracts shall be the amount of zero emission | ||||||
7 | credits that are generated from the portion of the zero | ||||||
8 | emission facility that is owned by the winning supplier. | ||||||
9 | The 16% value identified in this paragraph (1) is the | ||||||
10 | average of the percentage targets in subparagraph (B) of | ||||||
11 | paragraph (1) of subsection (c) of this Section for the 5 | ||||||
12 | delivery years beginning June 1, 2017. | ||||||
13 | The procurement process shall be subject to the | ||||||
14 | following provisions: | ||||||
15 | (A) Those zero emission facilities that intend to | ||||||
16 | participate in the procurement shall submit to the | ||||||
17 | Agency the following eligibility information for each | ||||||
18 | zero emission facility on or before the date | ||||||
19 | established by the Agency: | ||||||
20 | (i) the in-service date and remaining useful | ||||||
21 | life of the zero emission facility; | ||||||
22 | (ii) the amount of power generated annually | ||||||
23 | for each of the years 2005 through 2015, and the | ||||||
24 | projected zero emission credits to be generated | ||||||
25 | over the remaining useful life of the zero | ||||||
26 | emission facility, which shall be used to |
| |||||||
| |||||||
1 | determine the capability of each facility; | ||||||
2 | (iii) the annual zero emission facility cost | ||||||
3 | projections, expressed on a per megawatthour | ||||||
4 | basis, over the next 6 delivery years, which shall | ||||||
5 | include the following: operation and maintenance | ||||||
6 | expenses; fully allocated overhead costs, which | ||||||
7 | shall be allocated using the methodology developed | ||||||
8 | by the Institute for Nuclear Power Operations; | ||||||
9 | fuel expenditures; non-fuel capital expenditures; | ||||||
10 | spent fuel expenditures; a return on working | ||||||
11 | capital; the cost of operational and market risks | ||||||
12 | that could be avoided by ceasing operation; and | ||||||
13 | any other costs necessary for continued | ||||||
14 | operations, provided that "necessary" means, for | ||||||
15 | purposes of this item (iii), that the costs could | ||||||
16 | reasonably be avoided only by ceasing operations | ||||||
17 | of the zero emission facility; and | ||||||
18 | (iv) a commitment to continue operating, for | ||||||
19 | the duration of the contract or contracts executed | ||||||
20 | under the procurement held under this subsection | ||||||
21 | (d-5), the zero emission facility that produces | ||||||
22 | the zero emission credits to be procured in the | ||||||
23 | procurement. | ||||||
24 | The information described in item (iii) of this | ||||||
25 | subparagraph (A) may be submitted on a confidential | ||||||
26 | basis and shall be treated and maintained by the |
| |||||||
| |||||||
1 | Agency, the procurement administrator, and the | ||||||
2 | Commission as confidential and proprietary and exempt | ||||||
3 | from disclosure under subparagraphs (a) and (g) of | ||||||
4 | paragraph (1) of Section 7 of the Freedom of | ||||||
5 | Information Act. The Office of Attorney General shall | ||||||
6 | have access to, and maintain the confidentiality of, | ||||||
7 | such information pursuant to Section 6.5 of the | ||||||
8 | Attorney General Act. | ||||||
9 | (B) The price for each zero emission credit | ||||||
10 | procured under this subsection (d-5) for each delivery | ||||||
11 | year shall be in an amount that equals the Social Cost | ||||||
12 | of Carbon, expressed on a price per megawatthour | ||||||
13 | basis. However, to ensure that the procurement remains | ||||||
14 | affordable to retail customers in this State if | ||||||
15 | electricity prices increase, the price in an | ||||||
16 | applicable delivery year shall be reduced below the | ||||||
17 | Social Cost of Carbon by the amount ("Price | ||||||
18 | Adjustment") by which the market price index for the | ||||||
19 | applicable delivery year exceeds the baseline market | ||||||
20 | price index for the consecutive 12-month period ending | ||||||
21 | May 31, 2016. If the Price Adjustment is greater than | ||||||
22 | or equal to the Social Cost of Carbon in an applicable | ||||||
23 | delivery year, then no payments shall be due in that | ||||||
24 | delivery year. The components of this calculation are | ||||||
25 | defined as follows: | ||||||
26 | (i) Social Cost of Carbon: The Social Cost of |
| |||||||
| |||||||
1 | Carbon is $16.50 per megawatthour, which is based | ||||||
2 | on the U.S. Interagency Working Group on Social | ||||||
3 | Cost of Carbon's price in the August 2016 | ||||||
4 | Technical Update using a 3% discount rate, | ||||||
5 | adjusted for inflation for each year of the | ||||||
6 | program. Beginning with the delivery year | ||||||
7 | commencing June 1, 2023, the price per | ||||||
8 | megawatthour shall increase by $1 per | ||||||
9 | megawatthour, and continue to increase by an | ||||||
10 | additional $1 per megawatthour each delivery year | ||||||
11 | thereafter. | ||||||
12 | (ii) Baseline market price index: The baseline | ||||||
13 | market price index for the consecutive 12-month | ||||||
14 | period ending May 31, 2016 is $31.40 per | ||||||
15 | megawatthour, which is based on the sum of (aa) | ||||||
16 | the average day-ahead energy price across all | ||||||
17 | hours of such 12-month period at the PJM | ||||||
18 | Interconnection LLC Northern Illinois Hub, (bb) | ||||||
19 | 50% multiplied by the Base Residual Auction, or | ||||||
20 | its successor, capacity price for the rest of the | ||||||
21 | RTO zone group determined by PJM Interconnection | ||||||
22 | LLC, divided by 24 hours per day, and (cc) 50% | ||||||
23 | multiplied by the Planning Resource Auction, or | ||||||
24 | its successor, capacity price for Zone 4 | ||||||
25 | determined by the Midcontinent Independent System | ||||||
26 | Operator, Inc., divided by 24 hours per day. |
| |||||||
| |||||||
1 | (iii) Market price index: The market price | ||||||
2 | index for a delivery year shall be the sum of | ||||||
3 | projected energy prices and projected capacity | ||||||
4 | prices determined as follows: | ||||||
5 | (aa) Projected energy prices: the | ||||||
6 | projected energy prices for the applicable | ||||||
7 | delivery year shall be calculated once for the | ||||||
8 | year using the forward market price for the | ||||||
9 | PJM Interconnection, LLC Northern Illinois | ||||||
10 | Hub. The forward market price shall be | ||||||
11 | calculated as follows: the energy forward | ||||||
12 | prices for each month of the applicable | ||||||
13 | delivery year averaged for each trade date | ||||||
14 | during the calendar year immediately preceding | ||||||
15 | that delivery year to produce a single energy | ||||||
16 | forward price for the delivery year. The | ||||||
17 | forward market price calculation shall use | ||||||
18 | data published by the Intercontinental | ||||||
19 | Exchange, or its successor. | ||||||
20 | (bb) Projected capacity prices: | ||||||
21 | (I) For the delivery years commencing | ||||||
22 | June 1, 2017, June 1, 2018, and June 1, | ||||||
23 | 2019, the projected capacity price shall | ||||||
24 | be equal to the sum of (1) 50% multiplied | ||||||
25 | by the Base Residual Auction, or its | ||||||
26 | successor, price for the rest of the RTO |
| |||||||
| |||||||
1 | zone group as determined by PJM | ||||||
2 | Interconnection LLC, divided by 24 hours | ||||||
3 | per day and, (2) 50% multiplied by the | ||||||
4 | resource auction price determined in the | ||||||
5 | resource auction administered by the | ||||||
6 | Midcontinent Independent System Operator, | ||||||
7 | Inc., in which the largest percentage of | ||||||
8 | load cleared for Local Resource Zone 4, | ||||||
9 | divided by 24 hours per day, and where | ||||||
10 | such price is determined by the | ||||||
11 | Midcontinent Independent System Operator, | ||||||
12 | Inc. | ||||||
13 | (II) For the delivery year commencing | ||||||
14 | June 1, 2020, and each year thereafter, | ||||||
15 | the projected capacity price shall be | ||||||
16 | equal to the sum of (1) 50% multiplied by | ||||||
17 | the Base Residual Auction, or its | ||||||
18 | successor, price for the ComEd zone as | ||||||
19 | determined by PJM Interconnection LLC, | ||||||
20 | divided by 24 hours per day, and (2) 50% | ||||||
21 | multiplied by the resource auction price | ||||||
22 | determined in the resource auction | ||||||
23 | administered by the Midcontinent | ||||||
24 | Independent System Operator, Inc., in | ||||||
25 | which the largest percentage of load | ||||||
26 | cleared for Local Resource Zone 4, divided |
| |||||||
| |||||||
1 | by 24 hours per day, and where such price | ||||||
2 | is determined by the Midcontinent | ||||||
3 | Independent System Operator, Inc. | ||||||
4 | For purposes of this subsection (d-5): | ||||||
5 | "Rest of the RTO" and "ComEd Zone" shall have | ||||||
6 | the meaning ascribed to them by PJM | ||||||
7 | Interconnection, LLC. | ||||||
8 | "RTO" means regional transmission | ||||||
9 | organization. | ||||||
10 | (C) No later than 45 days after June 1, 2017 (the | ||||||
11 | effective date of Public Act 99-906), the Agency shall | ||||||
12 | publish its proposed zero emission standard | ||||||
13 | procurement plan. The plan shall be consistent with | ||||||
14 | the provisions of this paragraph (1) and shall provide | ||||||
15 | that winning bids shall be selected based on public | ||||||
16 | interest criteria that include, but are not limited | ||||||
17 | to, minimizing carbon dioxide emissions that result | ||||||
18 | from electricity consumed in Illinois and minimizing | ||||||
19 | sulfur dioxide, nitrogen oxide, and particulate matter | ||||||
20 | emissions that adversely affect the residents citizens | ||||||
21 | of this State. In particular, the selection of winning | ||||||
22 | bids shall take into account the incremental | ||||||
23 | environmental benefits resulting from the procurement, | ||||||
24 | such as any existing environmental benefits that are | ||||||
25 | preserved by the procurements held under Public Act | ||||||
26 | 99-906 and would cease to exist if the procurements |
| |||||||
| |||||||
1 | were not held, including the preservation of zero | ||||||
2 | emission facilities. The plan shall also describe in | ||||||
3 | detail how each public interest factor shall be | ||||||
4 | considered and weighted in the bid selection process | ||||||
5 | to ensure that the public interest criteria are | ||||||
6 | applied to the procurement and given full effect. | ||||||
7 | For purposes of developing the plan, the Agency | ||||||
8 | shall consider any reports issued by a State agency, | ||||||
9 | board, or commission under House Resolution 1146 of | ||||||
10 | the 98th General Assembly and paragraph (4) of | ||||||
11 | subsection (d) of this Section, as well as publicly | ||||||
12 | available analyses and studies performed by or for | ||||||
13 | regional transmission organizations that serve the | ||||||
14 | State and their independent market monitors. | ||||||
15 | Upon publishing of the zero emission standard | ||||||
16 | procurement plan, copies of the plan shall be posted | ||||||
17 | and made publicly available on the Agency's website. | ||||||
18 | All interested parties shall have 10 days following | ||||||
19 | the date of posting to provide comment to the Agency on | ||||||
20 | the plan. All comments shall be posted to the Agency's | ||||||
21 | website. Following the end of the comment period, but | ||||||
22 | no more than 60 days later than June 1, 2017 (the | ||||||
23 | effective date of Public Act 99-906), the Agency shall | ||||||
24 | revise the plan as necessary based on the comments | ||||||
25 | received and file its zero emission standard | ||||||
26 | procurement plan with the Commission. |
| |||||||
| |||||||
1 | If the Commission determines that the plan will | ||||||
2 | result in the procurement of cost-effective zero | ||||||
3 | emission credits, then the Commission shall, after | ||||||
4 | notice and hearing, but no later than 45 days after the | ||||||
5 | Agency filed the plan, approve the plan or approve | ||||||
6 | with modification. For purposes of this subsection | ||||||
7 | (d-5), "cost effective" means the projected costs of | ||||||
8 | procuring zero emission credits from zero emission | ||||||
9 | facilities do not cause the limit stated in paragraph | ||||||
10 | (2) of this subsection to be exceeded. | ||||||
11 | (C-5) As part of the Commission's review and | ||||||
12 | acceptance or rejection of the procurement results, | ||||||
13 | the Commission shall, in its public notice of | ||||||
14 | successful bidders: | ||||||
15 | (i) identify how the winning bids satisfy the | ||||||
16 | public interest criteria described in subparagraph | ||||||
17 | (C) of this paragraph (1) of minimizing carbon | ||||||
18 | dioxide emissions that result from electricity | ||||||
19 | consumed in Illinois and minimizing sulfur | ||||||
20 | dioxide, nitrogen oxide, and particulate matter | ||||||
21 | emissions that adversely affect the residents | ||||||
22 | citizens of this State; | ||||||
23 | (ii) specifically address how the selection of | ||||||
24 | winning bids takes into account the incremental | ||||||
25 | environmental benefits resulting from the | ||||||
26 | procurement, including any existing environmental |
| |||||||
| |||||||
1 | benefits that are preserved by the procurements | ||||||
2 | held under Public Act 99-906 and would have ceased | ||||||
3 | to exist if the procurements had not been held, | ||||||
4 | such as the preservation of zero emission | ||||||
5 | facilities; | ||||||
6 | (iii) quantify the environmental benefit of | ||||||
7 | preserving the resources identified in item (ii) | ||||||
8 | of this subparagraph (C-5), including the | ||||||
9 | following: | ||||||
10 | (aa) the value of avoided greenhouse gas | ||||||
11 | emissions measured as the product of the zero | ||||||
12 | emission facilities' output over the contract | ||||||
13 | term multiplied by the U.S. Environmental | ||||||
14 | Protection Agency eGrid subregion carbon | ||||||
15 | dioxide emission rate and the U.S. Interagency | ||||||
16 | Working Group on Social Cost of Carbon's price | ||||||
17 | in the August 2016 Technical Update using a 3% | ||||||
18 | discount rate, adjusted for inflation for each | ||||||
19 | delivery year; and | ||||||
20 | (bb) the costs of replacement with other | ||||||
21 | zero carbon dioxide resources, including wind | ||||||
22 | and photovoltaic, based upon the simple | ||||||
23 | average of the following: | ||||||
24 | (I) the price, or if there is more | ||||||
25 | than one price, the average of the prices, | ||||||
26 | paid for renewable energy credits from new |
| |||||||
| |||||||
1 | utility-scale wind projects in the | ||||||
2 | procurement events specified in item (i) | ||||||
3 | of subparagraph (G) of paragraph (1) of | ||||||
4 | subsection (c) of this Section; and | ||||||
5 | (II) the price, or if there is more | ||||||
6 | than one price, the average of the prices, | ||||||
7 | paid for renewable energy credits from new | ||||||
8 | utility-scale solar projects and | ||||||
9 | brownfield site photovoltaic projects in | ||||||
10 | the procurement events specified in item | ||||||
11 | (ii) of subparagraph (G) of paragraph (1) | ||||||
12 | of subsection (c) of this Section and, | ||||||
13 | after January 1, 2015, renewable energy | ||||||
14 | credits from photovoltaic distributed | ||||||
15 | generation projects in procurement events | ||||||
16 | held under subsection (c) of this Section. | ||||||
17 | Each utility shall enter into binding contractual | ||||||
18 | arrangements with the winning suppliers. | ||||||
19 | The procurement described in this subsection | ||||||
20 | (d-5), including, but not limited to, the execution of | ||||||
21 | all contracts procured, shall be completed no later | ||||||
22 | than May 10, 2017. Based on the effective date of | ||||||
23 | Public Act 99-906, the Agency and Commission may, as | ||||||
24 | appropriate, modify the various dates and timelines | ||||||
25 | under this subparagraph and subparagraphs (C) and (D) | ||||||
26 | of this paragraph (1). The procurement and plan |
| |||||||
| |||||||
1 | approval processes required by this subsection (d-5) | ||||||
2 | shall be conducted in conjunction with the procurement | ||||||
3 | and plan approval processes required by subsection (c) | ||||||
4 | of this Section and Section 16-111.5 of the Public | ||||||
5 | Utilities Act, to the extent practicable. | ||||||
6 | Notwithstanding whether a procurement event is | ||||||
7 | conducted under Section 16-111.5 of the Public | ||||||
8 | Utilities Act, the Agency shall immediately initiate a | ||||||
9 | procurement process on June 1, 2017 (the effective | ||||||
10 | date of Public Act 99-906). | ||||||
11 | (D) Following the procurement event described in | ||||||
12 | this paragraph (1) and consistent with subparagraph | ||||||
13 | (B) of this paragraph (1), the Agency shall calculate | ||||||
14 | the payments to be made under each contract for the | ||||||
15 | next delivery year based on the market price index for | ||||||
16 | that delivery year. The Agency shall publish the | ||||||
17 | payment calculations no later than May 25, 2017 and | ||||||
18 | every May 25 thereafter. | ||||||
19 | (E) Notwithstanding the requirements of this | ||||||
20 | subsection (d-5), the contracts executed under this | ||||||
21 | subsection (d-5) shall provide that the zero emission | ||||||
22 | facility may, as applicable, suspend or terminate | ||||||
23 | performance under the contracts in the following | ||||||
24 | instances: | ||||||
25 | (i) A zero emission facility shall be excused | ||||||
26 | from its performance under the contract for any |
| |||||||
| |||||||
1 | cause beyond the control of the resource, | ||||||
2 | including, but not restricted to, acts of God, | ||||||
3 | flood, drought, earthquake, storm, fire, | ||||||
4 | lightning, epidemic, war, riot, civil disturbance | ||||||
5 | or disobedience, labor dispute, labor or material | ||||||
6 | shortage, sabotage, acts of public enemy, | ||||||
7 | explosions, orders, regulations or restrictions | ||||||
8 | imposed by governmental, military, or lawfully | ||||||
9 | established civilian authorities, which, in any of | ||||||
10 | the foregoing cases, by exercise of commercially | ||||||
11 | reasonable efforts the zero emission facility | ||||||
12 | could not reasonably have been expected to avoid, | ||||||
13 | and which, by the exercise of commercially | ||||||
14 | reasonable efforts, it has been unable to | ||||||
15 | overcome. In such event, the zero emission | ||||||
16 | facility shall be excused from performance for the | ||||||
17 | duration of the event, including, but not limited | ||||||
18 | to, delivery of zero emission credits, and no | ||||||
19 | payment shall be due to the zero emission facility | ||||||
20 | during the duration of the event. | ||||||
21 | (ii) A zero emission facility shall be | ||||||
22 | permitted to terminate the contract if legislation | ||||||
23 | is enacted into law by the General Assembly that | ||||||
24 | imposes or authorizes a new tax, special | ||||||
25 | assessment, or fee on the generation of | ||||||
26 | electricity, the ownership or leasehold of a |
| |||||||
| |||||||
1 | generating unit, or the privilege or occupation of | ||||||
2 | such generation, ownership, or leasehold of | ||||||
3 | generation units by a zero emission facility. | ||||||
4 | However, the provisions of this item (ii) do not | ||||||
5 | apply to any generally applicable tax, special | ||||||
6 | assessment or fee, or requirements imposed by | ||||||
7 | federal law. | ||||||
8 | (iii) A zero emission facility shall be | ||||||
9 | permitted to terminate the contract in the event | ||||||
10 | that the resource requires capital expenditures in | ||||||
11 | excess of $40,000,000 that were neither known nor | ||||||
12 | reasonably foreseeable at the time it executed the | ||||||
13 | contract and that a prudent owner or operator of | ||||||
14 | such resource would not undertake. | ||||||
15 | (iv) A zero emission facility shall be | ||||||
16 | permitted to terminate the contract in the event | ||||||
17 | the Nuclear Regulatory Commission terminates the | ||||||
18 | resource's license. | ||||||
19 | (F) If the zero emission facility elects to | ||||||
20 | terminate a contract under subparagraph (E) of this | ||||||
21 | paragraph (1), then the Commission shall reopen the | ||||||
22 | docket in which the Commission approved the zero | ||||||
23 | emission standard procurement plan under subparagraph | ||||||
24 | (C) of this paragraph (1) and, after notice and | ||||||
25 | hearing, enter an order acknowledging the contract | ||||||
26 | termination election if such termination is consistent |
| |||||||
| |||||||
1 | with the provisions of this subsection (d-5). | ||||||
2 | (2) For purposes of this subsection (d-5), the amount | ||||||
3 | paid per kilowatthour means the total amount paid for | ||||||
4 | electric service expressed on a per kilowatthour basis. | ||||||
5 | For purposes of this subsection (d-5), the total amount | ||||||
6 | paid for electric service includes, without limitation, | ||||||
7 | amounts paid for supply, transmission, distribution, | ||||||
8 | surcharges, and add-on taxes. | ||||||
9 | Notwithstanding the requirements of this subsection | ||||||
10 | (d-5), the contracts executed under this subsection (d-5) | ||||||
11 | shall provide that the total of zero emission credits | ||||||
12 | procured under a procurement plan shall be subject to the | ||||||
13 | limitations of this paragraph (2). For each delivery year, | ||||||
14 | the contractual volume receiving payments in such year | ||||||
15 | shall be reduced for all retail customers based on the | ||||||
16 | amount necessary to limit the net increase that delivery | ||||||
17 | year to the costs of those credits included in the amounts | ||||||
18 | paid by eligible retail customers in connection with | ||||||
19 | electric service to no more than 1.65% of the amount paid | ||||||
20 | per kilowatthour by eligible retail customers during the | ||||||
21 | year ending May 31, 2009. The result of this computation | ||||||
22 | shall apply to and reduce the procurement for all retail | ||||||
23 | customers, and all those customers shall pay the same | ||||||
24 | single, uniform cents per kilowatthour charge under | ||||||
25 | subsection (k) of Section 16-108 of the Public Utilities | ||||||
26 | Act. To arrive at a maximum dollar amount of zero emission |
| |||||||
| |||||||
1 | credits to be paid for the particular delivery year, the | ||||||
2 | resulting per kilowatthour amount shall be applied to the | ||||||
3 | actual amount of kilowatthours of electricity delivered by | ||||||
4 | the electric utility in the delivery year immediately | ||||||
5 | prior to the procurement, to all retail customers in its | ||||||
6 | service territory. Unpaid contractual volume for any | ||||||
7 | delivery year shall be paid in any subsequent delivery | ||||||
8 | year in which such payments can be made without exceeding | ||||||
9 | the amount specified in this paragraph (2). The | ||||||
10 | calculations required by this paragraph (2) shall be made | ||||||
11 | only once for each procurement plan year. Once the | ||||||
12 | determination as to the amount of zero emission credits to | ||||||
13 | be paid is made based on the calculations set forth in this | ||||||
14 | paragraph (2), no subsequent rate impact determinations | ||||||
15 | shall be made and no adjustments to those contract amounts | ||||||
16 | shall be allowed. All costs incurred under those contracts | ||||||
17 | and in implementing this subsection (d-5) shall be | ||||||
18 | recovered by the electric utility as provided in this | ||||||
19 | Section. | ||||||
20 | No later than June 30, 2019, the Commission shall | ||||||
21 | review the limitation on the amount of zero emission | ||||||
22 | credits procured under this subsection (d-5) and report to | ||||||
23 | the General Assembly its findings as to whether that | ||||||
24 | limitation unduly constrains the procurement of | ||||||
25 | cost-effective zero emission credits. | ||||||
26 | (3) Six years after the execution of a contract under |
| |||||||
| |||||||
1 | this subsection (d-5), the Agency shall determine whether | ||||||
2 | the actual zero emission credit payments received by the | ||||||
3 | supplier over the 6-year period exceed the Average ZEC | ||||||
4 | Payment. In addition, at the end of the term of a contract | ||||||
5 | executed under this subsection (d-5), or at the time, if | ||||||
6 | any, a zero emission facility's contract is terminated | ||||||
7 | under subparagraph (E) of paragraph (1) of this subsection | ||||||
8 | (d-5), then the Agency shall determine whether the actual | ||||||
9 | zero emission credit payments received by the supplier | ||||||
10 | over the term of the contract exceed the Average ZEC | ||||||
11 | Payment, after taking into account any amounts previously | ||||||
12 | credited back to the utility under this paragraph (3). If | ||||||
13 | the Agency determines that the actual zero emission credit | ||||||
14 | payments received by the supplier over the relevant period | ||||||
15 | exceed the Average ZEC Payment, then the supplier shall | ||||||
16 | credit the difference back to the utility. The amount of | ||||||
17 | the credit shall be remitted to the applicable electric | ||||||
18 | utility no later than 120 days after the Agency's | ||||||
19 | determination, which the utility shall reflect as a credit | ||||||
20 | on its retail customer bills as soon as practicable; | ||||||
21 | however, the credit remitted to the utility shall not | ||||||
22 | exceed the total amount of payments received by the | ||||||
23 | facility under its contract. | ||||||
24 | For purposes of this Section, the Average ZEC Payment | ||||||
25 | shall be calculated by multiplying the quantity of zero | ||||||
26 | emission credits delivered under the contract times the |
| |||||||
| |||||||
1 | average contract price. The average contract price shall | ||||||
2 | be determined by subtracting the amount calculated under | ||||||
3 | subparagraph (B) of this paragraph (3) from the amount | ||||||
4 | calculated under subparagraph (A) of this paragraph (3), | ||||||
5 | as follows: | ||||||
6 | (A) The average of the Social Cost of Carbon, as | ||||||
7 | defined in subparagraph (B) of paragraph (1) of this | ||||||
8 | subsection (d-5), during the term of the contract. | ||||||
9 | (B) The average of the market price indices, as | ||||||
10 | defined in subparagraph (B) of paragraph (1) of this | ||||||
11 | subsection (d-5), during the term of the contract, | ||||||
12 | minus the baseline market price index, as defined in | ||||||
13 | subparagraph (B) of paragraph (1) of this subsection | ||||||
14 | (d-5). | ||||||
15 | If the subtraction yields a negative number, then the | ||||||
16 | Average ZEC Payment shall be zero. | ||||||
17 | (4) Cost-effective zero emission credits procured from | ||||||
18 | zero emission facilities shall satisfy the applicable | ||||||
19 | definitions set forth in Section 1-10 of this Act. | ||||||
20 | (5) The electric utility shall retire all zero | ||||||
21 | emission credits used to comply with the requirements of | ||||||
22 | this subsection (d-5). | ||||||
23 | (6) Electric utilities shall be entitled to recover | ||||||
24 | all of the costs associated with the procurement of zero | ||||||
25 | emission credits through an automatic adjustment clause | ||||||
26 | tariff in accordance with subsection (k) and (m) of |
| |||||||
| |||||||
1 | Section 16-108 of the Public Utilities Act, and the | ||||||
2 | contracts executed under this subsection (d-5) shall | ||||||
3 | provide that the utilities' payment obligations under such | ||||||
4 | contracts shall be reduced if an adjustment is required | ||||||
5 | under subsection (m) of Section 16-108 of the Public | ||||||
6 | Utilities Act. | ||||||
7 | (7) This subsection (d-5) shall become inoperative on | ||||||
8 | January 1, 2028. | ||||||
9 | (e) The draft procurement plans are subject to public | ||||||
10 | comment, as required by Section 16-111.5 of the Public | ||||||
11 | Utilities Act. | ||||||
12 | (f) The Agency shall submit the final procurement plan to | ||||||
13 | the Commission. The Agency shall revise a procurement plan if | ||||||
14 | the Commission determines that it does not meet the standards | ||||||
15 | set forth in Section 16-111.5 of the Public Utilities Act. | ||||||
16 | (g) The Agency shall assess fees to each affected utility | ||||||
17 | to recover the costs incurred in preparation of the annual | ||||||
18 | procurement plan for the utility. | ||||||
19 | (h) The Agency shall assess fees to each bidder to recover | ||||||
20 | the costs incurred in connection with a competitive | ||||||
21 | procurement process.
| ||||||
22 | (i) A renewable energy credit, carbon emission credit, or | ||||||
23 | zero emission credit can only be used once to comply with a | ||||||
24 | single portfolio or other standard as set forth in subsection | ||||||
25 | (c), subsection (d), or subsection (d-5) of this Section, | ||||||
26 | respectively. A renewable energy credit, carbon emission |
| |||||||
| |||||||
1 | credit, or zero emission credit cannot be used to satisfy the | ||||||
2 | requirements of more than one standard. If more than one type | ||||||
3 | of credit is issued for the same megawatt hour of energy, only | ||||||
4 | one credit can be used to satisfy the requirements of a single | ||||||
5 | standard. After such use, the credit must be retired together | ||||||
6 | with any other credits issued for the same megawatt hour of | ||||||
7 | energy. | ||||||
8 | (j) Renewable energy supply. | ||||||
9 | (1) Beginning with the energy to be delivered in the | ||||||
10 | delivery year commencing on June 1, 2023, the Agency shall | ||||||
11 | assess the feasibility of procuring cost-effective, | ||||||
12 | long-term contracts for energy supply from renewable | ||||||
13 | energy projects, in accordance with the requirements of | ||||||
14 | Section 16-111.5 of the Public Utilities Act for the | ||||||
15 | eligible retail customers of electric utilities that on | ||||||
16 | December 31, 2005 provided electric service to at least | ||||||
17 | 100,000 customers in Illinois. | ||||||
18 | (2) Long-term contracts as described in this | ||||||
19 | subsection (j) shall refer to contracts that are | ||||||
20 | preferably no less than a 15-year period, but in no case | ||||||
21 | less than a 5-year period. | ||||||
22 | (3) The Agency shall evaluate energy supply | ||||||
23 | procurements that enable greater achievement, or more | ||||||
24 | cost-effective achievement, of the renewable energy goals | ||||||
25 | in this Section, including through coordination or | ||||||
26 | bundling with procurements of renewable energy credits, or |
| |||||||
| |||||||
1 | capacity from renewable energy resources, as provided | ||||||
2 | under subparagraph (P) of subsection (c) of this Section, | ||||||
3 | or capacity from renewable energy resources, as provided | ||||||
4 | under subsection (k) of this Section. | ||||||
5 | (4) The Agency shall include in its annual procurement | ||||||
6 | plan the results of this assessment and any recommended | ||||||
7 | procurements. The Agency shall, at a minimum, reevaluate | ||||||
8 | its assessment every 3 years, incorporating new | ||||||
9 | information from updated data, including, but not limited | ||||||
10 | to, the results of its procurements, competitive market | ||||||
11 | trends, and energy procurements in other states. | ||||||
12 | (k) Capacity procurement. | ||||||
13 | (1) This Section grants the Illinois Power Agency the | ||||||
14 | sole authority to conduct auctions for the purpose of | ||||||
15 | procuring capacity if a public utility in the State elects | ||||||
16 | to use the Fixed Resource Requirement Alternative as | ||||||
17 | provided for in the Open Access Transmission Tariff, | ||||||
18 | Reliability Assurance Agreement, and manuals of PJM | ||||||
19 | Interconnection, LLC or its successors, and that election | ||||||
20 | is approved by the Illinois Commerce Commission. Where the | ||||||
21 | election is approved by the Illinois Commerce Commission, | ||||||
22 | the Illinois Power Agency shall develop a procurement plan | ||||||
23 | for the procurement of capacity in amounts necessary to | ||||||
24 | ensure the public utility's resource adequacy pursuant to | ||||||
25 | PJM's federally-mandated requirements. The Agency is | ||||||
26 | authorized to conduct Capacity Procurement auctions as |
| |||||||
| |||||||
1 | necessary to meet the public utility's resource | ||||||
2 | obligations while achieving the objectives set forth in | ||||||
3 | this Section for the duration of the public utility's | ||||||
4 | election of the Fixed Resource Requirement Alternative. | ||||||
5 | (2) The draft procurement plan is subject to public | ||||||
6 | comment, as required by Section 16-111.5 of the Public | ||||||
7 | Utilities Act. | ||||||
8 | (3) The Agency shall design the Capacity Procurement | ||||||
9 | Plan to achieve the following objectives: | ||||||
10 | (i) Through one or more auctions which procure | ||||||
11 | capacity for one or more years, meets the public | ||||||
12 | utility's resource obligation under the Fixed Resource | ||||||
13 | Requirement Alternative while maximizing benefits that | ||||||
14 | meet the State's public interest in the health, safety | ||||||
15 | and welfare of its residents, including, but not | ||||||
16 | limited to: significantly reduced emissions in the | ||||||
17 | State from power generation sources; consumer savings; | ||||||
18 | and those interests described in subparagraph (I) of | ||||||
19 | paragraph (1) of subsection (c) of Section 1-75 of the | ||||||
20 | Illinois Power Agency Act. | ||||||
21 | (ii) Implements a limiter on auction payments to | ||||||
22 | all resources that are not renewable energy resources, | ||||||
23 | demand response, or energy efficiency resources. The | ||||||
24 | limiter shall be imposed on all other resources such | ||||||
25 | that total payments under the auction ensure consumer | ||||||
26 | savings at an amount no less than 5% below a baseline |
| |||||||
| |||||||
1 | of previous years' payments. | ||||||
2 | (iii) Implements a limiter on participating | ||||||
3 | carbon-emitting resources such that emissions decrease | ||||||
4 | below a baseline of previous years' emissions. | ||||||
5 | (4) As part of its Capacity Procurement plans, the | ||||||
6 | Agency may implement an auction for an optional bundled | ||||||
7 | product which includes payments to resources that provide | ||||||
8 | both capacity and renewable energy credits. Renewable | ||||||
9 | energy resources that are not eligible to participate in | ||||||
10 | auctions pursuant to subparagraph (J) of paragraph (1) of | ||||||
11 | subsection (c) of Section 1-75 of the Illinois Power | ||||||
12 | Agency Act are not eligible to participate in auctions | ||||||
13 | conducted to implement Capacity Procurement plans. | ||||||
14 | (Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19; | ||||||
15 | 101-113, eff. 1-1-20 .) | ||||||
16 | Section 90-20. The State Finance Act is amended by adding | ||||||
17 | Sections 5.935, 5.936, 5.937 and as follows: | ||||||
18 | (30 ILCS 105/5.935 new) | ||||||
19 | Sec. 5.935. The Energy Community Reinvestment Fund. | ||||||
20 | (30 ILCS 105/5.936 new) | ||||||
21 | Sec. 5.936. The Illinois Commerce Commission Intervenor | ||||||
22 | Compensation Fund. |
| |||||||
| |||||||
1 | (30 ILCS 105/5.937 new) | ||||||
2 | Sec. 5.937. The Illinois Clean Energy Jobs and Justice | ||||||
3 | Fund. | ||||||
4 | Section 90-25. The Illinois Income Tax Act is amended by | ||||||
5 | changing Section 201 as follows:
| ||||||
6 | (35 ILCS 5/201)
| ||||||
7 | (Text of Section without the changes made by P.A. 101-8, | ||||||
8 | which did not take effect (see Section 99 of P.A. 101-8)) | ||||||
9 | Sec. 201. Tax imposed. | ||||||
10 | (a) In general. A tax measured by net income is hereby | ||||||
11 | imposed on every
individual, corporation, trust and estate for | ||||||
12 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
13 | of earning or receiving income in or
as a resident of this | ||||||
14 | State. Such tax shall be in addition to all other
occupation or | ||||||
15 | privilege taxes imposed by this State or by any municipal
| ||||||
16 | corporation or political subdivision thereof. | ||||||
17 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
18 | Section shall be
determined as follows, except as adjusted by | ||||||
19 | subsection (d-1): | ||||||
20 | (1) In the case of an individual, trust or estate, for | ||||||
21 | taxable years
ending prior to July 1, 1989, an amount | ||||||
22 | equal to 2 1/2% of the taxpayer's
net income for the | ||||||
23 | taxable year. | ||||||
24 | (2) In the case of an individual, trust or estate, for |
| |||||||
| |||||||
1 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
2 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
3 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
4 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
5 | 3% of the
taxpayer's net income for the period after June | ||||||
6 | 30, 1989, as calculated
under Section 202.3. | ||||||
7 | (3) In the case of an individual, trust or estate, for | ||||||
8 | taxable years
beginning after June 30, 1989, and ending | ||||||
9 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
10 | taxpayer's net
income for the taxable year. | ||||||
11 | (4) In the case of an individual, trust, or estate, | ||||||
12 | for taxable years beginning prior to January 1, 2011, and | ||||||
13 | ending after December 31, 2010, an amount equal to the sum | ||||||
14 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
15 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
16 | (ii) 5% of the taxpayer's net income for the period after | ||||||
17 | December 31, 2010, as calculated under Section 202.5. | ||||||
18 | (5) In the case of an individual, trust, or estate, | ||||||
19 | for taxable years beginning on or after January 1, 2011, | ||||||
20 | and ending prior to January 1, 2015, an amount equal to 5% | ||||||
21 | of the taxpayer's net income for the taxable year. | ||||||
22 | (5.1) In the case of an individual, trust, or estate, | ||||||
23 | for taxable years beginning prior to January 1, 2015, and | ||||||
24 | ending after December 31, 2014, an amount equal to the sum | ||||||
25 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
26 | to January 1, 2015, as calculated under Section 202.5, and |
| |||||||
| |||||||
1 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
2 | after December 31, 2014, as calculated under Section | ||||||
3 | 202.5. | ||||||
4 | (5.2) In the case of an individual, trust, or estate, | ||||||
5 | for taxable years beginning on or after January 1, 2015, | ||||||
6 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
7 | of the taxpayer's net income for the taxable year. | ||||||
8 | (5.3) In the case of an individual, trust, or estate, | ||||||
9 | for taxable years beginning prior to July 1, 2017, and | ||||||
10 | ending after June 30, 2017, an amount equal to the sum of | ||||||
11 | (i) 3.75% of the taxpayer's net income for the period | ||||||
12 | prior to July 1, 2017, as calculated under Section 202.5, | ||||||
13 | and (ii) 4.95% of the taxpayer's net income for the period | ||||||
14 | after June 30, 2017, as calculated under Section 202.5. | ||||||
15 | (5.4) In the case of an individual, trust, or estate, | ||||||
16 | for taxable years beginning on or after July 1, 2017, an | ||||||
17 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
18 | taxable year. | ||||||
19 | (6) In the case of a corporation, for taxable years
| ||||||
20 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
21 | taxpayer's net income for the taxable year. | ||||||
22 | (7) In the case of a corporation, for taxable years | ||||||
23 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
24 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
25 | taxpayer's net income for the period prior to July 1, | ||||||
26 | 1989,
as calculated under Section 202.3, and (ii) 4.8% of |
| |||||||
| |||||||
1 | the taxpayer's net
income for the period after June 30, | ||||||
2 | 1989, as calculated under Section
202.3. | ||||||
3 | (8) In the case of a corporation, for taxable years | ||||||
4 | beginning after
June 30, 1989, and ending prior to January | ||||||
5 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
6 | income for the
taxable year. | ||||||
7 | (9) In the case of a corporation, for taxable years | ||||||
8 | beginning prior to January 1, 2011, and ending after | ||||||
9 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
10 | of the taxpayer's net income for the period prior to | ||||||
11 | January 1, 2011, as calculated under Section 202.5, and | ||||||
12 | (ii) 7% of the taxpayer's net income for the period after | ||||||
13 | December 31, 2010, as calculated under Section 202.5. | ||||||
14 | (10) In the case of a corporation, for taxable years | ||||||
15 | beginning on or after January 1, 2011, and ending prior to | ||||||
16 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
17 | net income for the taxable year. | ||||||
18 | (11) In the case of a corporation, for taxable years | ||||||
19 | beginning prior to January 1, 2015, and ending after | ||||||
20 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
21 | the taxpayer's net income for the period prior to January | ||||||
22 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
23 | of the taxpayer's net income for the period after December | ||||||
24 | 31, 2014, as calculated under Section 202.5. | ||||||
25 | (12) In the case of a corporation, for taxable years | ||||||
26 | beginning on or after January 1, 2015, and ending prior to |
| |||||||
| |||||||
1 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
2 | net income for the taxable year. | ||||||
3 | (13) In the case of a corporation, for taxable years | ||||||
4 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
5 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
6 | taxpayer's net income for the period prior to July 1, | ||||||
7 | 2017, as calculated under Section 202.5, and (ii) 7% of | ||||||
8 | the taxpayer's net income for the period after June 30, | ||||||
9 | 2017, as calculated under Section 202.5. | ||||||
10 | (14) In the case of a corporation, for taxable years | ||||||
11 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
12 | of the taxpayer's net income for the taxable year. | ||||||
13 | The rates under this subsection (b) are subject to the | ||||||
14 | provisions of Section 201.5. | ||||||
15 | (b-5) Surcharge; sale or exchange of assets, properties, | ||||||
16 | and intangibles of organization gaming licensees. For each of | ||||||
17 | taxable years 2019 through 2027, a surcharge is imposed on all | ||||||
18 | taxpayers on income arising from the sale or exchange of | ||||||
19 | capital assets, depreciable business property, real property | ||||||
20 | used in the trade or business, and Section 197 intangibles (i) | ||||||
21 | of an organization licensee under the Illinois Horse Racing | ||||||
22 | Act of 1975 and (ii) of an organization gaming licensee under | ||||||
23 | the Illinois Gambling Act. The amount of the surcharge is | ||||||
24 | equal to the amount of federal income tax liability for the | ||||||
25 | taxable year attributable to those sales and exchanges. The | ||||||
26 | surcharge imposed shall not apply if: |
| |||||||
| |||||||
1 | (1) the organization gaming license, organization | ||||||
2 | license, or racetrack property is transferred as a result | ||||||
3 | of any of the following: | ||||||
4 | (A) bankruptcy, a receivership, or a debt | ||||||
5 | adjustment initiated by or against the initial | ||||||
6 | licensee or the substantial owners of the initial | ||||||
7 | licensee; | ||||||
8 | (B) cancellation, revocation, or termination of | ||||||
9 | any such license by the Illinois Gaming Board or the | ||||||
10 | Illinois Racing Board; | ||||||
11 | (C) a determination by the Illinois Gaming Board | ||||||
12 | that transfer of the license is in the best interests | ||||||
13 | of Illinois gaming; | ||||||
14 | (D) the death of an owner of the equity interest in | ||||||
15 | a licensee; | ||||||
16 | (E) the acquisition of a controlling interest in | ||||||
17 | the stock or substantially all of the assets of a | ||||||
18 | publicly traded company; | ||||||
19 | (F) a transfer by a parent company to a wholly | ||||||
20 | owned subsidiary; or | ||||||
21 | (G) the transfer or sale to or by one person to | ||||||
22 | another person where both persons were initial owners | ||||||
23 | of the license when the license was issued; or | ||||||
24 | (2) the controlling interest in the organization | ||||||
25 | gaming license, organization license, or racetrack | ||||||
26 | property is transferred in a transaction to lineal |
| |||||||
| |||||||
1 | descendants in which no gain or loss is recognized or as a | ||||||
2 | result of a transaction in accordance with Section 351 of | ||||||
3 | the Internal Revenue Code in which no gain or loss is | ||||||
4 | recognized; or | ||||||
5 | (3) live horse racing was not conducted in 2010 at a | ||||||
6 | racetrack located within 3 miles of the Mississippi River | ||||||
7 | under a license issued pursuant to the Illinois Horse | ||||||
8 | Racing Act of 1975. | ||||||
9 | The transfer of an organization gaming license, | ||||||
10 | organization license, or racetrack property by a person other | ||||||
11 | than the initial licensee to receive the organization gaming | ||||||
12 | license is not subject to a surcharge. The Department shall | ||||||
13 | adopt rules necessary to implement and administer this | ||||||
14 | subsection. | ||||||
15 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
16 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
17 | income
tax, there is also hereby imposed the Personal Property | ||||||
18 | Tax Replacement
Income Tax measured by net income on every | ||||||
19 | corporation (including Subchapter
S corporations), partnership | ||||||
20 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
21 | Such taxes are imposed on the privilege of earning or
| ||||||
22 | receiving income in or as a resident of this State. The | ||||||
23 | Personal Property
Tax Replacement Income Tax shall be in | ||||||
24 | addition to the income tax imposed
by subsections (a) and (b) | ||||||
25 | of this Section and in addition to all other
occupation or | ||||||
26 | privilege taxes imposed by this State or by any municipal
|
| |||||||
| |||||||
1 | corporation or political subdivision thereof. | ||||||
2 | (d) Additional Personal Property Tax Replacement Income | ||||||
3 | Tax Rates.
The personal property tax replacement income tax | ||||||
4 | imposed by this subsection
and subsection (c) of this Section | ||||||
5 | in the case of a corporation, other
than a Subchapter S | ||||||
6 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
7 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
8 | income for the taxable year, except that
beginning on January | ||||||
9 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
10 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
11 | partnership, trust or a Subchapter S corporation shall be an | ||||||
12 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
13 | for the taxable year. | ||||||
14 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
15 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
16 | Illinois Insurance Code,
whose state or country of domicile | ||||||
17 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
18 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
19 | are 50% or more of its total insurance
premiums as determined | ||||||
20 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
21 | that for purposes of this determination premiums from | ||||||
22 | reinsurance do
not include premiums from inter-affiliate | ||||||
23 | reinsurance arrangements),
beginning with taxable years ending | ||||||
24 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
25 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
26 | increased) to the rate at which the total amount of tax imposed |
| |||||||
| |||||||
1 | under this Act,
net of all credits allowed under this Act, | ||||||
2 | shall equal (i) the total amount of
tax that would be imposed | ||||||
3 | on the foreign insurer's net income allocable to
Illinois for | ||||||
4 | the taxable year by such foreign insurer's state or country of
| ||||||
5 | domicile if that net income were subject to all income taxes | ||||||
6 | and taxes
measured by net income imposed by such foreign | ||||||
7 | insurer's state or country of
domicile, net of all credits | ||||||
8 | allowed or (ii) a rate of zero if no such tax is
imposed on | ||||||
9 | such income by the foreign insurer's state of domicile.
For | ||||||
10 | the purposes of this subsection (d-1), an inter-affiliate | ||||||
11 | includes a
mutual insurer under common management. | ||||||
12 | (1) For the purposes of subsection (d-1), in no event | ||||||
13 | shall the sum of the
rates of tax imposed by subsections | ||||||
14 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
15 | (A) the total amount of tax imposed on such | ||||||
16 | foreign insurer under
this Act for a taxable year, net | ||||||
17 | of all credits allowed under this Act, plus | ||||||
18 | (B) the privilege tax imposed by Section 409 of | ||||||
19 | the Illinois Insurance
Code, the fire insurance | ||||||
20 | company tax imposed by Section 12 of the Fire
| ||||||
21 | Investigation Act, and the fire department taxes | ||||||
22 | imposed under Section 11-10-1
of the Illinois | ||||||
23 | Municipal Code, | ||||||
24 | equals 1.25% for taxable years ending prior to December | ||||||
25 | 31, 2003, or
1.75% for taxable years ending on or after | ||||||
26 | December 31, 2003, of the net
taxable premiums written for |
| |||||||
| |||||||
1 | the taxable year,
as described by subsection (1) of | ||||||
2 | Section 409 of the Illinois Insurance Code.
This paragraph | ||||||
3 | will in no event increase the rates imposed under | ||||||
4 | subsections
(b) and (d). | ||||||
5 | (2) Any reduction in the rates of tax imposed by this | ||||||
6 | subsection shall be
applied first against the rates | ||||||
7 | imposed by subsection (b) and only after the
tax imposed | ||||||
8 | by subsection (a) net of all credits allowed under this | ||||||
9 | Section
other than the credit allowed under subsection (i) | ||||||
10 | has been reduced to zero,
against the rates imposed by | ||||||
11 | subsection (d). | ||||||
12 | This subsection (d-1) is exempt from the provisions of | ||||||
13 | Section 250. | ||||||
14 | (e) Investment credit. A taxpayer shall be allowed a | ||||||
15 | credit
against the Personal Property Tax Replacement Income | ||||||
16 | Tax for
investment in qualified property. | ||||||
17 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
18 | of
the basis of qualified property placed in service | ||||||
19 | during the taxable year,
provided such property is placed | ||||||
20 | in service on or after
July 1, 1984. There shall be allowed | ||||||
21 | an additional credit equal
to .5% of the basis of | ||||||
22 | qualified property placed in service during the
taxable | ||||||
23 | year, provided such property is placed in service on or
| ||||||
24 | after July 1, 1986, and the taxpayer's base employment
| ||||||
25 | within Illinois has increased by 1% or more over the | ||||||
26 | preceding year as
determined by the taxpayer's employment |
| |||||||
| |||||||
1 | records filed with the
Illinois Department of Employment | ||||||
2 | Security. Taxpayers who are new to
Illinois shall be | ||||||
3 | deemed to have met the 1% growth in base employment for
the | ||||||
4 | first year in which they file employment records with the | ||||||
5 | Illinois
Department of Employment Security. The provisions | ||||||
6 | added to this Section by
Public Act 85-1200 (and restored | ||||||
7 | by Public Act 87-895) shall be
construed as declaratory of | ||||||
8 | existing law and not as a new enactment. If,
in any year, | ||||||
9 | the increase in base employment within Illinois over the
| ||||||
10 | preceding year is less than 1%, the additional credit | ||||||
11 | shall be limited to that
percentage times a fraction, the | ||||||
12 | numerator of which is .5% and the denominator
of which is | ||||||
13 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
14 | not be
allowed to the extent that it would reduce a | ||||||
15 | taxpayer's liability in any tax
year below zero, nor may | ||||||
16 | any credit for qualified property be allowed for any
year | ||||||
17 | other than the year in which the property was placed in | ||||||
18 | service in
Illinois. For tax years ending on or after | ||||||
19 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
20 | credit shall be allowed for the tax year in
which the | ||||||
21 | property is placed in service, or, if the amount of the | ||||||
22 | credit
exceeds the tax liability for that year, whether it | ||||||
23 | exceeds the original
liability or the liability as later | ||||||
24 | amended, such excess may be carried
forward and applied to | ||||||
25 | the tax liability of the 5 taxable years following
the | ||||||
26 | excess credit years if the taxpayer (i) makes investments |
| |||||||
| |||||||
1 | which cause
the creation of a minimum of 2,000 full-time | ||||||
2 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
3 | enterprise zone established pursuant to the Illinois
| ||||||
4 | Enterprise Zone Act and (iii) is certified by the | ||||||
5 | Department of Commerce
and Community Affairs (now | ||||||
6 | Department of Commerce and Economic Opportunity) as | ||||||
7 | complying with the requirements specified in
clause (i) | ||||||
8 | and (ii) by July 1, 1986. The Department of Commerce and
| ||||||
9 | Community Affairs (now Department of Commerce and Economic | ||||||
10 | Opportunity) shall notify the Department of Revenue of all | ||||||
11 | such
certifications immediately. For tax years ending | ||||||
12 | after December 31, 1988,
the credit shall be allowed for | ||||||
13 | the tax year in which the property is
placed in service, | ||||||
14 | or, if the amount of the credit exceeds the tax
liability | ||||||
15 | for that year, whether it exceeds the original liability | ||||||
16 | or the
liability as later amended, such excess may be | ||||||
17 | carried forward and applied
to the tax liability of the 5 | ||||||
18 | taxable years following the excess credit
years. The | ||||||
19 | credit shall be applied to the earliest year for which | ||||||
20 | there is
a liability. If there is credit from more than one | ||||||
21 | tax year that is
available to offset a liability, earlier | ||||||
22 | credit shall be applied first. | ||||||
23 | (2) The term "qualified property" means property | ||||||
24 | which: | ||||||
25 | (A) is tangible, whether new or used, including | ||||||
26 | buildings and structural
components of buildings and |
| |||||||
| |||||||
1 | signs that are real property, but not including
land | ||||||
2 | or improvements to real property that are not a | ||||||
3 | structural component of a
building such as | ||||||
4 | landscaping, sewer lines, local access roads, fencing, | ||||||
5 | parking
lots, and other appurtenances; | ||||||
6 | (B) is depreciable pursuant to Section 167 of the | ||||||
7 | Internal Revenue Code,
except that "3-year property" | ||||||
8 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
9 | eligible for the credit provided by this subsection | ||||||
10 | (e); | ||||||
11 | (C) is acquired by purchase as defined in Section | ||||||
12 | 179(d) of
the Internal Revenue Code; | ||||||
13 | (D) is used in Illinois by a taxpayer who is | ||||||
14 | primarily engaged in
manufacturing, or in mining coal | ||||||
15 | or fluorite, or in retailing, or was placed in service | ||||||
16 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
17 | Zone established pursuant to the River Edge | ||||||
18 | Redevelopment Zone Act; and | ||||||
19 | (E) has not previously been used in Illinois in | ||||||
20 | such a manner and by
such a person as would qualify for | ||||||
21 | the credit provided by this subsection
(e) or | ||||||
22 | subsection (f). | ||||||
23 | (3) For purposes of this subsection (e), | ||||||
24 | "manufacturing" means
the material staging and production | ||||||
25 | of tangible personal property by
procedures commonly | ||||||
26 | regarded as manufacturing, processing, fabrication, or
|
| |||||||
| |||||||
1 | assembling which changes some existing material into new | ||||||
2 | shapes, new
qualities, or new combinations. For purposes | ||||||
3 | of this subsection
(e) the term "mining" shall have the | ||||||
4 | same meaning as the term "mining" in
Section 613(c) of the | ||||||
5 | Internal Revenue Code. For purposes of this subsection
| ||||||
6 | (e), the term "retailing" means the sale of tangible | ||||||
7 | personal property for use or consumption and not for | ||||||
8 | resale, or
services rendered in conjunction with the sale | ||||||
9 | of tangible personal property for use or consumption and | ||||||
10 | not for resale. For purposes of this subsection (e), | ||||||
11 | "tangible personal property" has the same meaning as when | ||||||
12 | that term is used in the Retailers' Occupation Tax Act, | ||||||
13 | and, for taxable years ending after December 31, 2008, | ||||||
14 | does not include the generation, transmission, or | ||||||
15 | distribution of electricity. | ||||||
16 | (4) The basis of qualified property shall be the basis
| ||||||
17 | used to compute the depreciation deduction for federal | ||||||
18 | income tax purposes. | ||||||
19 | (5) If the basis of the property for federal income | ||||||
20 | tax depreciation
purposes is increased after it has been | ||||||
21 | placed in service in Illinois by
the taxpayer, the amount | ||||||
22 | of such increase shall be deemed property placed
in | ||||||
23 | service on the date of such increase in basis. | ||||||
24 | (6) The term "placed in service" shall have the same
| ||||||
25 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
26 | (7) If during any taxable year, any property ceases to
|
| |||||||
| |||||||
1 | be qualified property in the hands of the taxpayer within | ||||||
2 | 48 months after
being placed in service, or the situs of | ||||||
3 | any qualified property is
moved outside Illinois within 48 | ||||||
4 | months after being placed in service, the
Personal | ||||||
5 | Property Tax Replacement Income Tax for such taxable year | ||||||
6 | shall be
increased. Such increase shall be determined by | ||||||
7 | (i) recomputing the
investment credit which would have | ||||||
8 | been allowed for the year in which
credit for such | ||||||
9 | property was originally allowed by eliminating such
| ||||||
10 | property from such computation and, (ii) subtracting such | ||||||
11 | recomputed credit
from the amount of credit previously | ||||||
12 | allowed. For the purposes of this
paragraph (7), a | ||||||
13 | reduction of the basis of qualified property resulting
| ||||||
14 | from a redetermination of the purchase price shall be | ||||||
15 | deemed a disposition
of qualified property to the extent | ||||||
16 | of such reduction. | ||||||
17 | (8) Unless the investment credit is extended by law, | ||||||
18 | the
basis of qualified property shall not include costs | ||||||
19 | incurred after
December 31, 2018, except for costs | ||||||
20 | incurred pursuant to a binding
contract entered into on or | ||||||
21 | before December 31, 2018. | ||||||
22 | (9) Each taxable year ending before December 31, 2000, | ||||||
23 | a partnership may
elect to pass through to its
partners | ||||||
24 | the credits to which the partnership is entitled under | ||||||
25 | this subsection
(e) for the taxable year. A partner may | ||||||
26 | use the credit allocated to him or her
under this |
| |||||||
| |||||||
1 | paragraph only against the tax imposed in subsections (c) | ||||||
2 | and (d) of
this Section. If the partnership makes that | ||||||
3 | election, those credits shall be
allocated among the | ||||||
4 | partners in the partnership in accordance with the rules
| ||||||
5 | set forth in Section 704(b) of the Internal Revenue Code, | ||||||
6 | and the rules
promulgated under that Section, and the | ||||||
7 | allocated amount of the credits shall
be allowed to the | ||||||
8 | partners for that taxable year. The partnership shall make
| ||||||
9 | this election on its Personal Property Tax Replacement | ||||||
10 | Income Tax return for
that taxable year. The election to | ||||||
11 | pass through the credits shall be
irrevocable. | ||||||
12 | For taxable years ending on or after December 31, | ||||||
13 | 2000, a
partner that qualifies its
partnership for a | ||||||
14 | subtraction under subparagraph (I) of paragraph (2) of
| ||||||
15 | subsection (d) of Section 203 or a shareholder that | ||||||
16 | qualifies a Subchapter S
corporation for a subtraction | ||||||
17 | under subparagraph (S) of paragraph (2) of
subsection (b) | ||||||
18 | of Section 203 shall be allowed a credit under this | ||||||
19 | subsection
(e) equal to its share of the credit earned | ||||||
20 | under this subsection (e) during
the taxable year by the | ||||||
21 | partnership or Subchapter S corporation, determined in
| ||||||
22 | accordance with the determination of income and | ||||||
23 | distributive share of
income under Sections 702 and 704 | ||||||
24 | and Subchapter S of the Internal Revenue
Code. This | ||||||
25 | paragraph is exempt from the provisions of Section 250. | ||||||
26 | (f) Investment credit; Enterprise Zone; River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone. | ||||||
2 | (1) A taxpayer shall be allowed a credit against the | ||||||
3 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
4 | investment in qualified
property which is placed in | ||||||
5 | service in an Enterprise Zone created
pursuant to the | ||||||
6 | Illinois Enterprise Zone Act or, for property placed in | ||||||
7 | service on or after July 1, 2006, a River Edge | ||||||
8 | Redevelopment Zone established pursuant to the River Edge | ||||||
9 | Redevelopment Zone Act. For partners, shareholders
of | ||||||
10 | Subchapter S corporations, and owners of limited liability | ||||||
11 | companies,
if the liability company is treated as a | ||||||
12 | partnership for purposes of
federal and State income | ||||||
13 | taxation, there shall be allowed a credit under
this | ||||||
14 | subsection (f) to be determined in accordance with the | ||||||
15 | determination
of income and distributive share of income | ||||||
16 | under Sections 702 and 704 and
Subchapter S of the | ||||||
17 | Internal Revenue Code. The credit shall be .5% of the
| ||||||
18 | basis for such property. The credit shall be available | ||||||
19 | only in the taxable
year in which the property is placed in | ||||||
20 | service in the Enterprise Zone or River Edge Redevelopment | ||||||
21 | Zone and
shall not be allowed to the extent that it would | ||||||
22 | reduce a taxpayer's
liability for the tax imposed by | ||||||
23 | subsections (a) and (b) of this Section to
below zero. For | ||||||
24 | tax years ending on or after December 31, 1985, the credit
| ||||||
25 | shall be allowed for the tax year in which the property is | ||||||
26 | placed in
service, or, if the amount of the credit exceeds |
| |||||||
| |||||||
1 | the tax liability for that
year, whether it exceeds the | ||||||
2 | original liability or the liability as later
amended, such | ||||||
3 | excess may be carried forward and applied to the tax
| ||||||
4 | liability of the 5 taxable years following the excess | ||||||
5 | credit year.
The credit shall be applied to the earliest | ||||||
6 | year for which there is a
liability. If there is credit | ||||||
7 | from more than one tax year that is available
to offset a | ||||||
8 | liability, the credit accruing first in time shall be | ||||||
9 | applied
first. | ||||||
10 | (2) The term qualified property means property which: | ||||||
11 | (A) is tangible, whether new or used, including | ||||||
12 | buildings and
structural components of buildings; | ||||||
13 | (B) is depreciable pursuant to Section 167 of the | ||||||
14 | Internal Revenue
Code, except that "3-year property" | ||||||
15 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
16 | eligible for the credit provided by this subsection | ||||||
17 | (f); | ||||||
18 | (C) is acquired by purchase as defined in Section | ||||||
19 | 179(d) of
the Internal Revenue Code; | ||||||
20 | (D) is used in the Enterprise Zone or River Edge | ||||||
21 | Redevelopment Zone by the taxpayer; and | ||||||
22 | (E) has not been previously used in Illinois in | ||||||
23 | such a manner and by
such a person as would qualify for | ||||||
24 | the credit provided by this subsection
(f) or | ||||||
25 | subsection (e). | ||||||
26 | (3) The basis of qualified property shall be the basis |
| |||||||
| |||||||
1 | used to compute
the depreciation deduction for federal | ||||||
2 | income tax purposes. | ||||||
3 | (4) If the basis of the property for federal income | ||||||
4 | tax depreciation
purposes is increased after it has been | ||||||
5 | placed in service in the Enterprise
Zone or River Edge | ||||||
6 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
7 | increase shall be deemed property
placed in service on the | ||||||
8 | date of such increase in basis. | ||||||
9 | (5) The term "placed in service" shall have the same | ||||||
10 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
11 | (6) If during any taxable year, any property ceases to | ||||||
12 | be qualified
property in the hands of the taxpayer within | ||||||
13 | 48 months after being placed
in service, or the situs of | ||||||
14 | any qualified property is moved outside the
Enterprise | ||||||
15 | Zone or River Edge Redevelopment Zone within 48 months | ||||||
16 | after being placed in service, the tax
imposed under | ||||||
17 | subsections (a) and (b) of this Section for such taxable | ||||||
18 | year
shall be increased. Such increase shall be determined | ||||||
19 | by (i) recomputing
the investment credit which would have | ||||||
20 | been allowed for the year in which
credit for such | ||||||
21 | property was originally allowed by eliminating such
| ||||||
22 | property from such computation, and (ii) subtracting such | ||||||
23 | recomputed credit
from the amount of credit previously | ||||||
24 | allowed. For the purposes of this
paragraph (6), a | ||||||
25 | reduction of the basis of qualified property resulting
| ||||||
26 | from a redetermination of the purchase price shall be |
| |||||||
| |||||||
1 | deemed a disposition
of qualified property to the extent | ||||||
2 | of such reduction. | ||||||
3 | (7) There shall be allowed an additional credit equal | ||||||
4 | to 0.5% of the basis of qualified property placed in | ||||||
5 | service during the taxable year in a River Edge | ||||||
6 | Redevelopment Zone, provided such property is placed in | ||||||
7 | service on or after July 1, 2006, and the taxpayer's base | ||||||
8 | employment within Illinois has increased by 1% or more | ||||||
9 | over the preceding year as determined by the taxpayer's | ||||||
10 | employment records filed with the Illinois Department of | ||||||
11 | Employment Security. Taxpayers who are new to Illinois | ||||||
12 | shall be deemed to have met the 1% growth in base | ||||||
13 | employment for the first year in which they file | ||||||
14 | employment records with the Illinois Department of | ||||||
15 | Employment Security. If, in any year, the increase in base | ||||||
16 | employment within Illinois over the preceding year is less | ||||||
17 | than 1%, the additional credit shall be limited to that | ||||||
18 | percentage times a fraction, the numerator of which is | ||||||
19 | 0.5% and the denominator of which is 1%, but shall not | ||||||
20 | exceed 0.5%.
| ||||||
21 | (8) For taxable years beginning on or after January 1, | ||||||
22 | 2021, there shall be allowed an Enterprise Zone | ||||||
23 | construction jobs credit against the taxes imposed under | ||||||
24 | subsections (a) and (b) of this Section as provided in | ||||||
25 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
26 | The credit or credits may not reduce the taxpayer's |
| |||||||
| |||||||
1 | liability to less than zero. If the amount of the credit or | ||||||
2 | credits exceeds the taxpayer's liability, the excess may | ||||||
3 | be carried forward and applied against the taxpayer's | ||||||
4 | liability in succeeding calendar years in the same manner | ||||||
5 | provided under paragraph (4) of Section 211 of this Act. | ||||||
6 | The credit or credits shall be applied to the earliest | ||||||
7 | year for which there is a tax liability. If there are | ||||||
8 | credits from more than one taxable year that are available | ||||||
9 | to offset a liability, the earlier credit shall be applied | ||||||
10 | first. | ||||||
11 | For partners, shareholders of Subchapter S | ||||||
12 | corporations, and owners of limited liability companies, | ||||||
13 | if the liability company is treated as a partnership for | ||||||
14 | the purposes of federal and State income taxation, there | ||||||
15 | shall be allowed a credit under this Section to be | ||||||
16 | determined in accordance with the determination of income | ||||||
17 | and distributive share of income under Sections 702 and | ||||||
18 | 704 and Subchapter S of the Internal Revenue Code. | ||||||
19 | The total aggregate amount of credits awarded under | ||||||
20 | the Blue Collar Jobs Act (Article 20 of Public Act 101-9 | ||||||
21 | this amendatory Act of the 101st General Assembly ) shall | ||||||
22 | not exceed $20,000,000 in any State fiscal year . | ||||||
23 | This paragraph (8) is exempt from the provisions of | ||||||
24 | Section 250. | ||||||
25 | (g) (Blank). | ||||||
26 | (h) Investment credit; High Impact Business. |
| |||||||
| |||||||
1 | (1) Subject to subsections (b) and (b-5) of Section
| ||||||
2 | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall | ||||||
3 | be allowed a credit
against the tax imposed by subsections | ||||||
4 | (a) and (b) of this Section for
investment in qualified
| ||||||
5 | property which is placed in service by a Department of | ||||||
6 | Commerce and Economic Opportunity
designated High Impact | ||||||
7 | Business. The credit shall be .5% of the basis
for such | ||||||
8 | property. The credit shall not be available (i) until the | ||||||
9 | minimum
investments in qualified property set forth in | ||||||
10 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
11 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
12 | time authorized in subsection (b-5) of the Illinois
| ||||||
13 | Enterprise Zone Act for entities designated as High Impact | ||||||
14 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
15 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
16 | Act, and shall not be allowed to the extent that it would
| ||||||
17 | reduce a taxpayer's liability for the tax imposed by | ||||||
18 | subsections (a) and (b) of
this Section to below zero. The | ||||||
19 | credit applicable to such investments shall be
taken in | ||||||
20 | the taxable year in which such investments have been | ||||||
21 | completed. The
credit for additional investments beyond | ||||||
22 | the minimum investment by a designated
high impact | ||||||
23 | business authorized under subdivision (a)(3)(A) of Section | ||||||
24 | 5.5 of
the Illinois Enterprise Zone Act shall be available | ||||||
25 | only in the taxable year in
which the property is placed in | ||||||
26 | service and shall not be allowed to the extent
that it |
| |||||||
| |||||||
1 | would reduce a taxpayer's liability for the tax imposed by | ||||||
2 | subsections
(a) and (b) of this Section to below zero.
For | ||||||
3 | tax years ending on or after December 31, 1987, the credit | ||||||
4 | shall be
allowed for the tax year in which the property is | ||||||
5 | placed in service, or, if
the amount of the credit exceeds | ||||||
6 | the tax liability for that year, whether
it exceeds the | ||||||
7 | original liability or the liability as later amended, such
| ||||||
8 | excess may be carried forward and applied to the tax | ||||||
9 | liability of the 5
taxable years following the excess | ||||||
10 | credit year. The credit shall be
applied to the earliest | ||||||
11 | year for which there is a liability. If there is
credit | ||||||
12 | from more than one tax year that is available to offset a | ||||||
13 | liability,
the credit accruing first in time shall be | ||||||
14 | applied first. | ||||||
15 | Changes made in this subdivision (h)(1) by Public Act | ||||||
16 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
17 | reflect existing law. | ||||||
18 | (2) The term qualified property means property which: | ||||||
19 | (A) is tangible, whether new or used, including | ||||||
20 | buildings and
structural components of buildings; | ||||||
21 | (B) is depreciable pursuant to Section 167 of the | ||||||
22 | Internal Revenue
Code, except that "3-year property" | ||||||
23 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
24 | eligible for the credit provided by this subsection | ||||||
25 | (h); | ||||||
26 | (C) is acquired by purchase as defined in Section |
| |||||||
| |||||||
1 | 179(d) of the
Internal Revenue Code; and | ||||||
2 | (D) is not eligible for the Enterprise Zone | ||||||
3 | Investment Credit provided
by subsection (f) of this | ||||||
4 | Section. | ||||||
5 | (3) The basis of qualified property shall be the basis | ||||||
6 | used to compute
the depreciation deduction for federal | ||||||
7 | income tax purposes. | ||||||
8 | (4) If the basis of the property for federal income | ||||||
9 | tax depreciation
purposes is increased after it has been | ||||||
10 | placed in service in a federally
designated Foreign Trade | ||||||
11 | Zone or Sub-Zone located in Illinois by the taxpayer,
the | ||||||
12 | amount of such increase shall be deemed property placed in | ||||||
13 | service on
the date of such increase in basis. | ||||||
14 | (5) The term "placed in service" shall have the same | ||||||
15 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
16 | (6) If during any taxable year ending on or before | ||||||
17 | December 31, 1996,
any property ceases to be qualified
| ||||||
18 | property in the hands of the taxpayer within 48 months | ||||||
19 | after being placed
in service, or the situs of any | ||||||
20 | qualified property is moved outside
Illinois within 48 | ||||||
21 | months after being placed in service, the tax imposed
| ||||||
22 | under subsections (a) and (b) of this Section for such | ||||||
23 | taxable year shall
be increased. Such increase shall be | ||||||
24 | determined by (i) recomputing the
investment credit which | ||||||
25 | would have been allowed for the year in which
credit for | ||||||
26 | such property was originally allowed by eliminating such
|
| |||||||
| |||||||
1 | property from such computation, and (ii) subtracting such | ||||||
2 | recomputed credit
from the amount of credit previously | ||||||
3 | allowed. For the purposes of this
paragraph (6), a | ||||||
4 | reduction of the basis of qualified property resulting
| ||||||
5 | from a redetermination of the purchase price shall be | ||||||
6 | deemed a disposition
of qualified property to the extent | ||||||
7 | of such reduction. | ||||||
8 | (7) Beginning with tax years ending after December 31, | ||||||
9 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
10 | subsection (h) and thereby is
granted a tax abatement and | ||||||
11 | the taxpayer relocates its entire facility in
violation of | ||||||
12 | the explicit terms and length of the contract under | ||||||
13 | Section
18-183 of the Property Tax Code, the tax imposed | ||||||
14 | under subsections
(a) and (b) of this Section shall be | ||||||
15 | increased for the taxable year
in which the taxpayer | ||||||
16 | relocated its facility by an amount equal to the
amount of | ||||||
17 | credit received by the taxpayer under this subsection (h). | ||||||
18 | (h-5) High Impact Business construction constructions jobs | ||||||
19 | credit. For taxable years beginning on or after January 1, | ||||||
20 | 2021, there shall also be allowed a High Impact Business | ||||||
21 | construction jobs credit against the tax imposed under | ||||||
22 | subsections (a) and (b) of this Section as provided in | ||||||
23 | subsections (i) and (j) of Section 5.5 of the Illinois | ||||||
24 | Enterprise Zone Act. | ||||||
25 | The credit or credits may not reduce the taxpayer's | ||||||
26 | liability to less than zero. If the amount of the credit or |
| |||||||
| |||||||
1 | credits exceeds the taxpayer's liability, the excess may be | ||||||
2 | carried forward and applied against the taxpayer's liability | ||||||
3 | in succeeding calendar years in the manner provided under | ||||||
4 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
5 | shall be applied to the earliest year for which there is a tax | ||||||
6 | liability. If there are credits from more than one taxable | ||||||
7 | year that are available to offset a liability, the earlier | ||||||
8 | credit shall be applied first. | ||||||
9 | For partners, shareholders of Subchapter S corporations, | ||||||
10 | and owners of limited liability companies, if the liability | ||||||
11 | company is treated as a partnership for the purposes of | ||||||
12 | federal and State income taxation, there shall be allowed a | ||||||
13 | credit under this Section to be determined in accordance with | ||||||
14 | the determination of income and distributive share of income | ||||||
15 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
16 | Revenue Code. | ||||||
17 | The total aggregate amount of credits awarded under the | ||||||
18 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
19 | amendatory Act of the 101st General Assembly ) shall not exceed | ||||||
20 | $20,000,000 in any State fiscal year . | ||||||
21 | This subsection (h-5) is exempt from the provisions of | ||||||
22 | Section 250. | ||||||
23 | (i) Credit for Personal Property Tax Replacement Income | ||||||
24 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
25 | shall be allowed
against the tax imposed by
subsections (a) | ||||||
26 | and (b) of this Section for the tax imposed by subsections (c)
|
| |||||||
| |||||||
1 | and (d) of this Section. This credit shall be computed by | ||||||
2 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
3 | Section by a fraction, the numerator
of which is base income | ||||||
4 | allocable to Illinois and the denominator of which is
Illinois | ||||||
5 | base income, and further multiplying the product by the tax | ||||||
6 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
7 | Any credit earned on or after December 31, 1986 under
this | ||||||
8 | subsection which is unused in the year
the credit is computed | ||||||
9 | because it exceeds the tax liability imposed by
subsections | ||||||
10 | (a) and (b) for that year (whether it exceeds the original
| ||||||
11 | liability or the liability as later amended) may be carried | ||||||
12 | forward and
applied to the tax liability imposed by | ||||||
13 | subsections (a) and (b) of the 5
taxable years following the | ||||||
14 | excess credit year, provided that no credit may
be carried | ||||||
15 | forward to any year ending on or
after December 31, 2003. This | ||||||
16 | credit shall be
applied first to the earliest year for which | ||||||
17 | there is a liability. If
there is a credit under this | ||||||
18 | subsection from more than one tax year that is
available to | ||||||
19 | offset a liability the earliest credit arising under this
| ||||||
20 | subsection shall be applied first. | ||||||
21 | If, during any taxable year ending on or after December | ||||||
22 | 31, 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
23 | Section for which a taxpayer
has claimed a credit under this | ||||||
24 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
25 | shall also be reduced. Such reduction shall be
determined by | ||||||
26 | recomputing the credit to take into account the reduced tax
|
| |||||||
| |||||||
1 | imposed by subsections (c) and (d). If any portion of the
| ||||||
2 | reduced amount of credit has been carried to a different | ||||||
3 | taxable year, an
amended return shall be filed for such | ||||||
4 | taxable year to reduce the amount of
credit claimed. | ||||||
5 | (j) Training expense credit. Beginning with tax years | ||||||
6 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
7 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
8 | imposed by subsections (a) and (b) under this Section
for all | ||||||
9 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
10 | the taxpayer in Illinois or Illinois residents employed
| ||||||
11 | outside of Illinois by a taxpayer, for educational or | ||||||
12 | vocational training in
semi-technical or technical fields or | ||||||
13 | semi-skilled or skilled fields, which
were deducted from gross | ||||||
14 | income in the computation of taxable income. The
credit | ||||||
15 | against the tax imposed by subsections (a) and (b) shall be | ||||||
16 | 1.6% of
such training expenses. For partners, shareholders of | ||||||
17 | subchapter S
corporations, and owners of limited liability | ||||||
18 | companies, if the liability
company is treated as a | ||||||
19 | partnership for purposes of federal and State income
taxation, | ||||||
20 | there shall be allowed a credit under this subsection (j) to be
| ||||||
21 | determined in accordance with the determination of income and | ||||||
22 | distributive
share of income under Sections 702 and 704 and | ||||||
23 | subchapter S of the Internal
Revenue Code. | ||||||
24 | Any credit allowed under this subsection which is unused | ||||||
25 | in the year
the credit is earned may be carried forward to each | ||||||
26 | of the 5 taxable
years following the year for which the credit |
| |||||||
| |||||||
1 | is first computed until it is
used. This credit shall be | ||||||
2 | applied first to the earliest year for which
there is a | ||||||
3 | liability. If there is a credit under this subsection from | ||||||
4 | more
than one tax year that is available to offset a liability , | ||||||
5 | the earliest
credit arising under this subsection shall be | ||||||
6 | applied first. No carryforward
credit may be claimed in any | ||||||
7 | tax year ending on or after
December 31, 2003. | ||||||
8 | (k) Research and development credit. For tax years ending | ||||||
9 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
10 | beginning again for tax years ending on or after December 31, | ||||||
11 | 2004, and ending prior to January 1, 2027, a taxpayer shall be
| ||||||
12 | allowed a credit against the tax imposed by subsections (a) | ||||||
13 | and (b) of this
Section for increasing research activities in | ||||||
14 | this State. The credit
allowed against the tax imposed by | ||||||
15 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
16 | qualifying expenditures for increasing research activities
in | ||||||
17 | this State. For partners, shareholders of subchapter S | ||||||
18 | corporations, and
owners of limited liability companies, if | ||||||
19 | the liability company is treated as a
partnership for purposes | ||||||
20 | of federal and State income taxation, there shall be
allowed a | ||||||
21 | credit under this subsection to be determined in accordance | ||||||
22 | with the
determination of income and distributive share of | ||||||
23 | income under Sections 702 and
704 and subchapter S of the | ||||||
24 | Internal Revenue Code. | ||||||
25 | For purposes of this subsection, "qualifying expenditures" | ||||||
26 | means the
qualifying expenditures as defined for the federal |
| |||||||
| |||||||
1 | credit for increasing
research activities which would be | ||||||
2 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
3 | which are conducted in this State, "qualifying
expenditures | ||||||
4 | for increasing research activities in this State" means the
| ||||||
5 | excess of qualifying expenditures for the taxable year in | ||||||
6 | which incurred
over qualifying expenditures for the base | ||||||
7 | period, "qualifying expenditures
for the base period" means | ||||||
8 | the average of the qualifying expenditures for
each year in | ||||||
9 | the base period, and "base period" means the 3 taxable years
| ||||||
10 | immediately preceding the taxable year for which the | ||||||
11 | determination is
being made. | ||||||
12 | Any credit in excess of the tax liability for the taxable | ||||||
13 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
14 | unused credit shown on its final completed return carried over | ||||||
15 | as a credit
against the tax liability for the following 5 | ||||||
16 | taxable years or until it has
been fully used, whichever | ||||||
17 | occurs first; provided that no credit earned in a tax year | ||||||
18 | ending prior to December 31, 2003 may be carried forward to any | ||||||
19 | year ending on or after December 31, 2003. | ||||||
20 | If an unused credit is carried forward to a given year from | ||||||
21 | 2 or more
earlier years, that credit arising in the earliest | ||||||
22 | year will be applied
first against the tax liability for the | ||||||
23 | given year. If a tax liability for
the given year still | ||||||
24 | remains, the credit from the next earliest year will
then be | ||||||
25 | applied, and so on, until all credits have been used or no tax
| ||||||
26 | liability for the given year remains. Any remaining unused |
| |||||||
| |||||||
1 | credit or
credits then will be carried forward to the next | ||||||
2 | following year in which a
tax liability is incurred, except | ||||||
3 | that no credit can be carried forward to
a year which is more | ||||||
4 | than 5 years after the year in which the expense for
which the | ||||||
5 | credit is given was incurred. | ||||||
6 | No inference shall be drawn from Public Act 91-644 this | ||||||
7 | amendatory Act of the 91st General
Assembly in construing this | ||||||
8 | Section for taxable years beginning before January
1, 1999. | ||||||
9 | It is the intent of the General Assembly that the research | ||||||
10 | and development credit under this subsection (k) shall apply | ||||||
11 | continuously for all tax years ending on or after December 31, | ||||||
12 | 2004 and ending prior to January 1, 2027, including, but not | ||||||
13 | limited to, the period beginning on January 1, 2016 and ending | ||||||
14 | on July 6, 2017 ( the effective date of Public Act 100-22) this | ||||||
15 | amendatory Act of the 100th General Assembly . All actions | ||||||
16 | taken in reliance on the continuation of the credit under this | ||||||
17 | subsection (k) by any taxpayer are hereby validated. | ||||||
18 | (l) Environmental Remediation Tax Credit. | ||||||
19 | (i) For tax years ending after December 31, 1997 and | ||||||
20 | on or before
December 31, 2001, a taxpayer shall be | ||||||
21 | allowed a credit against the tax
imposed by subsections | ||||||
22 | (a) and (b) of this Section for certain amounts paid
for | ||||||
23 | unreimbursed eligible remediation costs, as specified in | ||||||
24 | this subsection.
For purposes of this Section, | ||||||
25 | "unreimbursed eligible remediation costs" means
costs | ||||||
26 | approved by the Illinois Environmental Protection Agency |
| |||||||
| |||||||
1 | ("Agency") under
Section 58.14 of the Environmental | ||||||
2 | Protection Act that were paid in performing
environmental | ||||||
3 | remediation at a site for which a No Further Remediation | ||||||
4 | Letter
was issued by the Agency and recorded under Section | ||||||
5 | 58.10 of the Environmental
Protection Act. The credit must | ||||||
6 | be claimed for the taxable year in which
Agency approval | ||||||
7 | of the eligible remediation costs is granted. The credit | ||||||
8 | is
not available to any taxpayer if the taxpayer or any | ||||||
9 | related party caused or
contributed to, in any material | ||||||
10 | respect, a release of regulated substances on,
in, or | ||||||
11 | under the site that was identified and addressed by the | ||||||
12 | remedial
action pursuant to the Site Remediation Program | ||||||
13 | of the Environmental Protection
Act. After the Pollution | ||||||
14 | Control Board rules are adopted pursuant to the
Illinois | ||||||
15 | Administrative Procedure Act for the administration and | ||||||
16 | enforcement of
Section 58.9 of the Environmental | ||||||
17 | Protection Act, determinations as to credit
availability | ||||||
18 | for purposes of this Section shall be made consistent with | ||||||
19 | those
rules. For purposes of this Section, "taxpayer" | ||||||
20 | includes a person whose tax
attributes the taxpayer has | ||||||
21 | succeeded to under Section 381 of the Internal
Revenue | ||||||
22 | Code and "related party" includes the persons disallowed a | ||||||
23 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
24 | Section 267 of the Internal
Revenue Code by virtue of | ||||||
25 | being a related taxpayer, as well as any of its
partners. | ||||||
26 | The credit allowed against the tax imposed by subsections |
| |||||||
| |||||||
1 | (a) and
(b) shall be equal to 25% of the unreimbursed | ||||||
2 | eligible remediation costs in
excess of $100,000 per site, | ||||||
3 | except that the $100,000 threshold shall not apply
to any | ||||||
4 | site contained in an enterprise zone as determined by the | ||||||
5 | Department of
Commerce and Community Affairs (now | ||||||
6 | Department of Commerce and Economic Opportunity). The | ||||||
7 | total credit allowed shall not exceed
$40,000 per year | ||||||
8 | with a maximum total of $150,000 per site. For partners | ||||||
9 | and
shareholders of subchapter S corporations, there shall | ||||||
10 | be allowed a credit
under this subsection to be determined | ||||||
11 | in accordance with the determination of
income and | ||||||
12 | distributive share of income under Sections 702 and 704 | ||||||
13 | and
subchapter S of the Internal Revenue Code. | ||||||
14 | (ii) A credit allowed under this subsection that is | ||||||
15 | unused in the year
the credit is earned may be carried | ||||||
16 | forward to each of the 5 taxable years
following the year | ||||||
17 | for which the credit is first earned until it is used.
The | ||||||
18 | term "unused credit" does not include any amounts of | ||||||
19 | unreimbursed eligible
remediation costs in excess of the | ||||||
20 | maximum credit per site authorized under
paragraph (i). | ||||||
21 | This credit shall be applied first to the earliest year
| ||||||
22 | for which there is a liability. If there is a credit under | ||||||
23 | this subsection
from more than one tax year that is | ||||||
24 | available to offset a liability, the
earliest credit | ||||||
25 | arising under this subsection shall be applied first. A
| ||||||
26 | credit allowed under this subsection may be sold to a |
| |||||||
| |||||||
1 | buyer as part of a sale
of all or part of the remediation | ||||||
2 | site for which the credit was granted. The
purchaser of a | ||||||
3 | remediation site and the tax credit shall succeed to the | ||||||
4 | unused
credit and remaining carry-forward period of the | ||||||
5 | seller. To perfect the
transfer, the assignor shall record | ||||||
6 | the transfer in the chain of title for the
site and provide | ||||||
7 | written notice to the Director of the Illinois Department | ||||||
8 | of
Revenue of the assignor's intent to sell the | ||||||
9 | remediation site and the amount of
the tax credit to be | ||||||
10 | transferred as a portion of the sale. In no event may a
| ||||||
11 | credit be transferred to any taxpayer if the taxpayer or a | ||||||
12 | related party would
not be eligible under the provisions | ||||||
13 | of subsection (i). | ||||||
14 | (iii) For purposes of this Section, the term "site" | ||||||
15 | shall have the same
meaning as under Section 58.2 of the | ||||||
16 | Environmental Protection Act. | ||||||
17 | (m) Education expense credit. Beginning with tax years | ||||||
18 | ending after
December 31, 1999, a taxpayer who
is the | ||||||
19 | custodian of one or more qualifying pupils shall be allowed a | ||||||
20 | credit
against the tax imposed by subsections (a) and (b) of | ||||||
21 | this Section for
qualified education expenses incurred on | ||||||
22 | behalf of the qualifying pupils.
The credit shall be equal to | ||||||
23 | 25% of qualified education expenses, but in no
event may the | ||||||
24 | total credit under this subsection claimed by a
family that is | ||||||
25 | the
custodian of qualifying pupils exceed (i) $500 for tax | ||||||
26 | years ending prior to December 31, 2017, and (ii) $750 for tax |
| |||||||
| |||||||
1 | years ending on or after December 31, 2017. In no event shall a | ||||||
2 | credit under
this subsection reduce the taxpayer's liability | ||||||
3 | under this Act to less than
zero. Notwithstanding any other | ||||||
4 | provision of law, for taxable years beginning on or after | ||||||
5 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
6 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
7 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
8 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
9 | of all other taxpayers. This subsection is exempt from the | ||||||
10 | provisions of Section 250 of this
Act. | ||||||
11 | For purposes of this subsection: | ||||||
12 | "Qualifying pupils" means individuals who (i) are | ||||||
13 | residents of the State of
Illinois, (ii) are under the age of | ||||||
14 | 21 at the close of the school year for
which a credit is | ||||||
15 | sought, and (iii) during the school year for which a credit
is | ||||||
16 | sought were full-time pupils enrolled in a kindergarten | ||||||
17 | through twelfth
grade education program at any school, as | ||||||
18 | defined in this subsection. | ||||||
19 | "Qualified education expense" means the amount incurred
on | ||||||
20 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
21 | book fees, and
lab fees at the school in which the pupil is | ||||||
22 | enrolled during the regular school
year. | ||||||
23 | "School" means any public or nonpublic elementary or | ||||||
24 | secondary school in
Illinois that is in compliance with Title | ||||||
25 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
26 | satisfies the requirements of Section 26-1 of the
School Code, |
| |||||||
| |||||||
1 | except that nothing shall be construed to require a child to
| ||||||
2 | attend any particular public or nonpublic school to qualify | ||||||
3 | for the credit
under this Section. | ||||||
4 | "Custodian" means, with respect to qualifying pupils, an | ||||||
5 | Illinois resident
who is a parent, the parents, a legal | ||||||
6 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
7 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
8 | credit.
| ||||||
9 | (i) For tax years ending on or after December 31, | ||||||
10 | 2006, a taxpayer shall be allowed a credit against the tax | ||||||
11 | imposed by subsections (a) and (b) of this Section for | ||||||
12 | certain amounts paid for unreimbursed eligible remediation | ||||||
13 | costs, as specified in this subsection. For purposes of | ||||||
14 | this Section, "unreimbursed eligible remediation costs" | ||||||
15 | means costs approved by the Illinois Environmental | ||||||
16 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
17 | Environmental Protection Act that were paid in performing | ||||||
18 | environmental remediation at a site within a River Edge | ||||||
19 | Redevelopment Zone for which a No Further Remediation | ||||||
20 | Letter was issued by the Agency and recorded under Section | ||||||
21 | 58.10 of the Environmental Protection Act. The credit must | ||||||
22 | be claimed for the taxable year in which Agency approval | ||||||
23 | of the eligible remediation costs is granted. The credit | ||||||
24 | is not available to any taxpayer if the taxpayer or any | ||||||
25 | related party caused or contributed to, in any material | ||||||
26 | respect, a release of regulated substances on, in, or |
| |||||||
| |||||||
1 | under the site that was identified and addressed by the | ||||||
2 | remedial action pursuant to the Site Remediation Program | ||||||
3 | of the Environmental Protection Act. Determinations as to | ||||||
4 | credit availability for purposes of this Section shall be | ||||||
5 | made consistent with rules adopted by the Pollution | ||||||
6 | Control Board pursuant to the Illinois Administrative | ||||||
7 | Procedure Act for the administration and enforcement of | ||||||
8 | Section 58.9 of the Environmental Protection Act. For | ||||||
9 | purposes of this Section, "taxpayer" includes a person | ||||||
10 | whose tax attributes the taxpayer has succeeded to under | ||||||
11 | Section 381 of the Internal Revenue Code and "related | ||||||
12 | party" includes the persons disallowed a deduction for | ||||||
13 | losses by paragraphs (b), (c), and (f)(1) of Section 267 | ||||||
14 | of the Internal Revenue Code by virtue of being a related | ||||||
15 | taxpayer, as well as any of its partners. The credit | ||||||
16 | allowed against the tax imposed by subsections (a) and (b) | ||||||
17 | shall be equal to 25% of the unreimbursed eligible | ||||||
18 | remediation costs in excess of $100,000 per site. | ||||||
19 | (ii) A credit allowed under this subsection that is | ||||||
20 | unused in the year the credit is earned may be carried | ||||||
21 | forward to each of the 5 taxable years following the year | ||||||
22 | for which the credit is first earned until it is used. This | ||||||
23 | credit shall be applied first to the earliest year for | ||||||
24 | which there is a liability. If there is a credit under this | ||||||
25 | subsection from more than one tax year that is available | ||||||
26 | to offset a liability, the earliest credit arising under |
| |||||||
| |||||||
1 | this subsection shall be applied first. A credit allowed | ||||||
2 | under this subsection may be sold to a buyer as part of a | ||||||
3 | sale of all or part of the remediation site for which the | ||||||
4 | credit was granted. The purchaser of a remediation site | ||||||
5 | and the tax credit shall succeed to the unused credit and | ||||||
6 | remaining carry-forward period of the seller. To perfect | ||||||
7 | the transfer, the assignor shall record the transfer in | ||||||
8 | the chain of title for the site and provide written notice | ||||||
9 | to the Director of the Illinois Department of Revenue of | ||||||
10 | the assignor's intent to sell the remediation site and the | ||||||
11 | amount of the tax credit to be transferred as a portion of | ||||||
12 | the sale. In no event may a credit be transferred to any | ||||||
13 | taxpayer if the taxpayer or a related party would not be | ||||||
14 | eligible under the provisions of subsection (i). | ||||||
15 | (iii) For purposes of this Section, the term "site" | ||||||
16 | shall have the same meaning as under Section 58.2 of the | ||||||
17 | Environmental Protection Act. | ||||||
18 | (o) For each of taxable years during the Compassionate Use | ||||||
19 | of Medical Cannabis Program, a surcharge is imposed on all | ||||||
20 | taxpayers on income arising from the sale or exchange of | ||||||
21 | capital assets, depreciable business property, real property | ||||||
22 | used in the trade or business, and Section 197 intangibles of | ||||||
23 | an organization registrant under the Compassionate Use of | ||||||
24 | Medical Cannabis Program Act. The amount of the surcharge is | ||||||
25 | equal to the amount of federal income tax liability for the | ||||||
26 | taxable year attributable to those sales and exchanges. The |
| |||||||
| |||||||
1 | surcharge imposed does not apply if: | ||||||
2 | (1) the medical cannabis cultivation center | ||||||
3 | registration, medical cannabis dispensary registration, or | ||||||
4 | the property of a registration is transferred as a result | ||||||
5 | of any of the following: | ||||||
6 | (A) bankruptcy, a receivership, or a debt | ||||||
7 | adjustment initiated by or against the initial | ||||||
8 | registration or the substantial owners of the initial | ||||||
9 | registration; | ||||||
10 | (B) cancellation, revocation, or termination of | ||||||
11 | any registration by the Illinois Department of Public | ||||||
12 | Health; | ||||||
13 | (C) a determination by the Illinois Department of | ||||||
14 | Public Health that transfer of the registration is in | ||||||
15 | the best interests of Illinois qualifying patients as | ||||||
16 | defined by the Compassionate Use of Medical Cannabis | ||||||
17 | Program Act; | ||||||
18 | (D) the death of an owner of the equity interest in | ||||||
19 | a registrant; | ||||||
20 | (E) the acquisition of a controlling interest in | ||||||
21 | the stock or substantially all of the assets of a | ||||||
22 | publicly traded company; | ||||||
23 | (F) a transfer by a parent company to a wholly | ||||||
24 | owned subsidiary; or | ||||||
25 | (G) the transfer or sale to or by one person to | ||||||
26 | another person where both persons were initial owners |
| |||||||
| |||||||
1 | of the registration when the registration was issued; | ||||||
2 | or | ||||||
3 | (2) the cannabis cultivation center registration, | ||||||
4 | medical cannabis dispensary registration, or the | ||||||
5 | controlling interest in a registrant's property is | ||||||
6 | transferred in a transaction to lineal descendants in | ||||||
7 | which no gain or loss is recognized or as a result of a | ||||||
8 | transaction in accordance with Section 351 of the Internal | ||||||
9 | Revenue Code in which no gain or loss is recognized. | ||||||
10 | (Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31, | ||||||
11 | eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; | ||||||
12 | revised 11-18-20.) | ||||||
13 | (Text of Section with the changes made by P.A. 101-8, | ||||||
14 | which did not take effect (see Section 99 of P.A. 101-8))
| ||||||
15 | Sec. 201. Tax imposed. | ||||||
16 | (a) In general. A tax measured by net income is hereby | ||||||
17 | imposed on every
individual, corporation, trust and estate for | ||||||
18 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
19 | of earning or receiving income in or
as a resident of this | ||||||
20 | State. Such tax shall be in addition to all other
occupation or | ||||||
21 | privilege taxes imposed by this State or by any municipal
| ||||||
22 | corporation or political subdivision thereof. | ||||||
23 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
24 | Section shall be
determined as follows, except as adjusted by | ||||||
25 | subsection (d-1): |
| |||||||
| |||||||
1 | (1) In the case of an individual, trust or estate, for | ||||||
2 | taxable years
ending prior to July 1, 1989, an amount | ||||||
3 | equal to 2 1/2% of the taxpayer's
net income for the | ||||||
4 | taxable year. | ||||||
5 | (2) In the case of an individual, trust or estate, for | ||||||
6 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
7 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
8 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
9 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
10 | 3% of the
taxpayer's net income for the period after June | ||||||
11 | 30, 1989, as calculated
under Section 202.3. | ||||||
12 | (3) In the case of an individual, trust or estate, for | ||||||
13 | taxable years
beginning after June 30, 1989, and ending | ||||||
14 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
15 | taxpayer's net
income for the taxable year. | ||||||
16 | (4) In the case of an individual, trust, or estate, | ||||||
17 | for taxable years beginning prior to January 1, 2011, and | ||||||
18 | ending after December 31, 2010, an amount equal to the sum | ||||||
19 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
20 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
21 | (ii) 5% of the taxpayer's net income for the period after | ||||||
22 | December 31, 2010, as calculated under Section 202.5. | ||||||
23 | (5) In the case of an individual, trust, or estate, | ||||||
24 | for taxable years beginning on or after January 1, 2011, | ||||||
25 | and ending prior to January 1, 2015, an amount equal to 5% | ||||||
26 | of the taxpayer's net income for the taxable year. |
| |||||||
| |||||||
1 | (5.1) In the case of an individual, trust, or estate, | ||||||
2 | for taxable years beginning prior to January 1, 2015, and | ||||||
3 | ending after December 31, 2014, an amount equal to the sum | ||||||
4 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
5 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
6 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
7 | after December 31, 2014, as calculated under Section | ||||||
8 | 202.5. | ||||||
9 | (5.2) In the case of an individual, trust, or estate, | ||||||
10 | for taxable years beginning on or after January 1, 2015, | ||||||
11 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
12 | of the taxpayer's net income for the taxable year. | ||||||
13 | (5.3) In the case of an individual, trust, or estate, | ||||||
14 | for taxable years beginning prior to July 1, 2017, and | ||||||
15 | ending after June 30, 2017, an amount equal to the sum of | ||||||
16 | (i) 3.75% of the taxpayer's net income for the period | ||||||
17 | prior to July 1, 2017, as calculated under Section 202.5, | ||||||
18 | and (ii) 4.95% of the taxpayer's net income for the period | ||||||
19 | after June 30, 2017, as calculated under Section 202.5. | ||||||
20 | (5.4) In the case of an individual, trust, or estate, | ||||||
21 | for taxable years beginning on or after July 1, 2017 and | ||||||
22 | beginning prior to January 1, 2021, an amount equal to | ||||||
23 | 4.95% of the taxpayer's net income for the taxable year. | ||||||
24 | (5.5) In the case of an individual, trust, or estate, | ||||||
25 | for taxable years beginning on or after January 1, 2021, | ||||||
26 | an amount calculated under the rate structure set forth in |
| |||||||
| |||||||
1 | Section 201.1. | ||||||
2 | (6) In the case of a corporation, for taxable years
| ||||||
3 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
4 | taxpayer's net income for the taxable year. | ||||||
5 | (7) In the case of a corporation, for taxable years | ||||||
6 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
7 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
8 | taxpayer's net income for the period prior to July 1, | ||||||
9 | 1989,
as calculated under Section 202.3, and (ii) 4.8% of | ||||||
10 | the taxpayer's net
income for the period after June 30, | ||||||
11 | 1989, as calculated under Section
202.3. | ||||||
12 | (8) In the case of a corporation, for taxable years | ||||||
13 | beginning after
June 30, 1989, and ending prior to January | ||||||
14 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
15 | income for the
taxable year. | ||||||
16 | (9) In the case of a corporation, for taxable years | ||||||
17 | beginning prior to January 1, 2011, and ending after | ||||||
18 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
19 | of the taxpayer's net income for the period prior to | ||||||
20 | January 1, 2011, as calculated under Section 202.5, and | ||||||
21 | (ii) 7% of the taxpayer's net income for the period after | ||||||
22 | December 31, 2010, as calculated under Section 202.5. | ||||||
23 | (10) In the case of a corporation, for taxable years | ||||||
24 | beginning on or after January 1, 2011, and ending prior to | ||||||
25 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
26 | net income for the taxable year. |
| |||||||
| |||||||
1 | (11) In the case of a corporation, for taxable years | ||||||
2 | beginning prior to January 1, 2015, and ending after | ||||||
3 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
4 | the taxpayer's net income for the period prior to January | ||||||
5 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
6 | of the taxpayer's net income for the period after December | ||||||
7 | 31, 2014, as calculated under Section 202.5. | ||||||
8 | (12) In the case of a corporation, for taxable years | ||||||
9 | beginning on or after January 1, 2015, and ending prior to | ||||||
10 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
11 | net income for the taxable year. | ||||||
12 | (13) In the case of a corporation, for taxable years | ||||||
13 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
14 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
15 | taxpayer's net income for the period prior to July 1, | ||||||
16 | 2017, as calculated under Section 202.5, and (ii) 7% of | ||||||
17 | the taxpayer's net income for the period after June 30, | ||||||
18 | 2017, as calculated under Section 202.5. | ||||||
19 | (14) In the case of a corporation, for taxable years | ||||||
20 | beginning on or after July 1, 2017 and beginning prior to | ||||||
21 | January 1, 2021, an amount equal to 7% of the taxpayer's | ||||||
22 | net income for the taxable year. | ||||||
23 | (15) In the case of a corporation, for taxable years | ||||||
24 | beginning on or after January 1, 2021, an amount equal to | ||||||
25 | 7.99% of the taxpayer's net income for the taxable year. | ||||||
26 | The rates under this subsection (b) are subject to the |
| |||||||
| |||||||
1 | provisions of Section 201.5. | ||||||
2 | (b-5) Surcharge; sale or exchange of assets, properties, | ||||||
3 | and intangibles of organization gaming licensees. For each of | ||||||
4 | taxable years 2019 through 2027, a surcharge is imposed on all | ||||||
5 | taxpayers on income arising from the sale or exchange of | ||||||
6 | capital assets, depreciable business property, real property | ||||||
7 | used in the trade or business, and Section 197 intangibles (i) | ||||||
8 | of an organization licensee under the Illinois Horse Racing | ||||||
9 | Act of 1975 and (ii) of an organization gaming licensee under | ||||||
10 | the Illinois Gambling Act. The amount of the surcharge is | ||||||
11 | equal to the amount of federal income tax liability for the | ||||||
12 | taxable year attributable to those sales and exchanges. The | ||||||
13 | surcharge imposed shall not apply if: | ||||||
14 | (1) the organization gaming license, organization | ||||||
15 | license, or racetrack property is transferred as a result | ||||||
16 | of any of the following: | ||||||
17 | (A) bankruptcy, a receivership, or a debt | ||||||
18 | adjustment initiated by or against the initial | ||||||
19 | licensee or the substantial owners of the initial | ||||||
20 | licensee; | ||||||
21 | (B) cancellation, revocation, or termination of | ||||||
22 | any such license by the Illinois Gaming Board or the | ||||||
23 | Illinois Racing Board; | ||||||
24 | (C) a determination by the Illinois Gaming Board | ||||||
25 | that transfer of the license is in the best interests | ||||||
26 | of Illinois gaming; |
| |||||||
| |||||||
1 | (D) the death of an owner of the equity interest in | ||||||
2 | a licensee; | ||||||
3 | (E) the acquisition of a controlling interest in | ||||||
4 | the stock or substantially all of the assets of a | ||||||
5 | publicly traded company; | ||||||
6 | (F) a transfer by a parent company to a wholly | ||||||
7 | owned subsidiary; or | ||||||
8 | (G) the transfer or sale to or by one person to | ||||||
9 | another person where both persons were initial owners | ||||||
10 | of the license when the license was issued; or | ||||||
11 | (2) the controlling interest in the organization | ||||||
12 | gaming license, organization license, or racetrack | ||||||
13 | property is transferred in a transaction to lineal | ||||||
14 | descendants in which no gain or loss is recognized or as a | ||||||
15 | result of a transaction in accordance with Section 351 of | ||||||
16 | the Internal Revenue Code in which no gain or loss is | ||||||
17 | recognized; or | ||||||
18 | (3) live horse racing was not conducted in 2010 at a | ||||||
19 | racetrack located within 3 miles of the Mississippi River | ||||||
20 | under a license issued pursuant to the Illinois Horse | ||||||
21 | Racing Act of 1975. | ||||||
22 | The transfer of an organization gaming license, | ||||||
23 | organization license, or racetrack property by a person other | ||||||
24 | than the initial licensee to receive the organization gaming | ||||||
25 | license is not subject to a surcharge. The Department shall | ||||||
26 | adopt rules necessary to implement and administer this |
| |||||||
| |||||||
1 | subsection. | ||||||
2 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
3 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
4 | income
tax, there is also hereby imposed the Personal Property | ||||||
5 | Tax Replacement
Income Tax measured by net income on every | ||||||
6 | corporation (including Subchapter
S corporations), partnership | ||||||
7 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
8 | Such taxes are imposed on the privilege of earning or
| ||||||
9 | receiving income in or as a resident of this State. The | ||||||
10 | Personal Property
Tax Replacement Income Tax shall be in | ||||||
11 | addition to the income tax imposed
by subsections (a) and (b) | ||||||
12 | of this Section and in addition to all other
occupation or | ||||||
13 | privilege taxes imposed by this State or by any municipal
| ||||||
14 | corporation or political subdivision thereof. | ||||||
15 | (d) Additional Personal Property Tax Replacement Income | ||||||
16 | Tax Rates.
The personal property tax replacement income tax | ||||||
17 | imposed by this subsection
and subsection (c) of this Section | ||||||
18 | in the case of a corporation, other
than a Subchapter S | ||||||
19 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
20 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
21 | income for the taxable year, except that
beginning on January | ||||||
22 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
23 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
24 | partnership, trust or a Subchapter S corporation shall be an | ||||||
25 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
26 | for the taxable year. |
| |||||||
| |||||||
1 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
2 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
3 | Illinois Insurance Code,
whose state or country of domicile | ||||||
4 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
5 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
6 | are 50% or more of its total insurance
premiums as determined | ||||||
7 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
8 | that for purposes of this determination premiums from | ||||||
9 | reinsurance do
not include premiums from inter-affiliate | ||||||
10 | reinsurance arrangements),
beginning with taxable years ending | ||||||
11 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
12 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
13 | increased) to the rate at which the total amount of tax imposed | ||||||
14 | under this Act,
net of all credits allowed under this Act, | ||||||
15 | shall equal (i) the total amount of
tax that would be imposed | ||||||
16 | on the foreign insurer's net income allocable to
Illinois for | ||||||
17 | the taxable year by such foreign insurer's state or country of
| ||||||
18 | domicile if that net income were subject to all income taxes | ||||||
19 | and taxes
measured by net income imposed by such foreign | ||||||
20 | insurer's state or country of
domicile, net of all credits | ||||||
21 | allowed or (ii) a rate of zero if no such tax is
imposed on | ||||||
22 | such income by the foreign insurer's state of domicile.
For | ||||||
23 | the purposes of this subsection (d-1), an inter-affiliate | ||||||
24 | includes a
mutual insurer under common management. | ||||||
25 | (1) For the purposes of subsection (d-1), in no event | ||||||
26 | shall the sum of the
rates of tax imposed by subsections |
| |||||||
| |||||||
1 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
2 | (A) the total amount of tax imposed on such | ||||||
3 | foreign insurer under
this Act for a taxable year, net | ||||||
4 | of all credits allowed under this Act, plus | ||||||
5 | (B) the privilege tax imposed by Section 409 of | ||||||
6 | the Illinois Insurance
Code, the fire insurance | ||||||
7 | company tax imposed by Section 12 of the Fire
| ||||||
8 | Investigation Act, and the fire department taxes | ||||||
9 | imposed under Section 11-10-1
of the Illinois | ||||||
10 | Municipal Code, | ||||||
11 | equals 1.25% for taxable years ending prior to December | ||||||
12 | 31, 2003, or
1.75% for taxable years ending on or after | ||||||
13 | December 31, 2003, of the net
taxable premiums written for | ||||||
14 | the taxable year,
as described by subsection (1) of | ||||||
15 | Section 409 of the Illinois Insurance Code.
This paragraph | ||||||
16 | will in no event increase the rates imposed under | ||||||
17 | subsections
(b) and (d). | ||||||
18 | (2) Any reduction in the rates of tax imposed by this | ||||||
19 | subsection shall be
applied first against the rates | ||||||
20 | imposed by subsection (b) and only after the
tax imposed | ||||||
21 | by subsection (a) net of all credits allowed under this | ||||||
22 | Section
other than the credit allowed under subsection (i) | ||||||
23 | has been reduced to zero,
against the rates imposed by | ||||||
24 | subsection (d). | ||||||
25 | This subsection (d-1) is exempt from the provisions of | ||||||
26 | Section 250. |
| |||||||
| |||||||
1 | (e) Investment credit. A taxpayer shall be allowed a | ||||||
2 | credit
against the Personal Property Tax Replacement Income | ||||||
3 | Tax for
investment in qualified property. | ||||||
4 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
5 | of
the basis of qualified property placed in service | ||||||
6 | during the taxable year,
provided such property is placed | ||||||
7 | in service on or after
July 1, 1984. There shall be allowed | ||||||
8 | an additional credit equal
to .5% of the basis of | ||||||
9 | qualified property placed in service during the
taxable | ||||||
10 | year, provided such property is placed in service on or
| ||||||
11 | after July 1, 1986, and the taxpayer's base employment
| ||||||
12 | within Illinois has increased by 1% or more over the | ||||||
13 | preceding year as
determined by the taxpayer's employment | ||||||
14 | records filed with the
Illinois Department of Employment | ||||||
15 | Security. Taxpayers who are new to
Illinois shall be | ||||||
16 | deemed to have met the 1% growth in base employment for
the | ||||||
17 | first year in which they file employment records with the | ||||||
18 | Illinois
Department of Employment Security. The provisions | ||||||
19 | added to this Section by
Public Act 85-1200 (and restored | ||||||
20 | by Public Act 87-895) shall be
construed as declaratory of | ||||||
21 | existing law and not as a new enactment. If,
in any year, | ||||||
22 | the increase in base employment within Illinois over the
| ||||||
23 | preceding year is less than 1%, the additional credit | ||||||
24 | shall be limited to that
percentage times a fraction, the | ||||||
25 | numerator of which is .5% and the denominator
of which is | ||||||
26 | 1%, but shall not exceed .5%. The investment credit shall |
| |||||||
| |||||||
1 | not be
allowed to the extent that it would reduce a | ||||||
2 | taxpayer's liability in any tax
year below zero, nor may | ||||||
3 | any credit for qualified property be allowed for any
year | ||||||
4 | other than the year in which the property was placed in | ||||||
5 | service in
Illinois. For tax years ending on or after | ||||||
6 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
7 | credit shall be allowed for the tax year in
which the | ||||||
8 | property is placed in service, or, if the amount of the | ||||||
9 | credit
exceeds the tax liability for that year, whether it | ||||||
10 | exceeds the original
liability or the liability as later | ||||||
11 | amended, such excess may be carried
forward and applied to | ||||||
12 | the tax liability of the 5 taxable years following
the | ||||||
13 | excess credit years if the taxpayer (i) makes investments | ||||||
14 | which cause
the creation of a minimum of 2,000 full-time | ||||||
15 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
16 | enterprise zone established pursuant to the Illinois
| ||||||
17 | Enterprise Zone Act and (iii) is certified by the | ||||||
18 | Department of Commerce
and Community Affairs (now | ||||||
19 | Department of Commerce and Economic Opportunity) as | ||||||
20 | complying with the requirements specified in
clause (i) | ||||||
21 | and (ii) by July 1, 1986. The Department of Commerce and
| ||||||
22 | Community Affairs (now Department of Commerce and Economic | ||||||
23 | Opportunity) shall notify the Department of Revenue of all | ||||||
24 | such
certifications immediately. For tax years ending | ||||||
25 | after December 31, 1988,
the credit shall be allowed for | ||||||
26 | the tax year in which the property is
placed in service, |
| |||||||
| |||||||
1 | or, if the amount of the credit exceeds the tax
liability | ||||||
2 | for that year, whether it exceeds the original liability | ||||||
3 | or the
liability as later amended, such excess may be | ||||||
4 | carried forward and applied
to the tax liability of the 5 | ||||||
5 | taxable years following the excess credit
years. The | ||||||
6 | credit shall be applied to the earliest year for which | ||||||
7 | there is
a liability. If there is credit from more than one | ||||||
8 | tax year that is
available to offset a liability, earlier | ||||||
9 | credit shall be applied first. | ||||||
10 | (2) The term "qualified property" means property | ||||||
11 | which: | ||||||
12 | (A) is tangible, whether new or used, including | ||||||
13 | buildings and structural
components of buildings and | ||||||
14 | signs that are real property, but not including
land | ||||||
15 | or improvements to real property that are not a | ||||||
16 | structural component of a
building such as | ||||||
17 | landscaping, sewer lines, local access roads, fencing, | ||||||
18 | parking
lots, and other appurtenances; | ||||||
19 | (B) is depreciable pursuant to Section 167 of the | ||||||
20 | Internal Revenue Code,
except that "3-year property" | ||||||
21 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
22 | eligible for the credit provided by this subsection | ||||||
23 | (e); | ||||||
24 | (C) is acquired by purchase as defined in Section | ||||||
25 | 179(d) of
the Internal Revenue Code; | ||||||
26 | (D) is used in Illinois by a taxpayer who is |
| |||||||
| |||||||
1 | primarily engaged in
manufacturing, or in mining coal | ||||||
2 | or fluorite, or in retailing, or was placed in service | ||||||
3 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
4 | Zone established pursuant to the River Edge | ||||||
5 | Redevelopment Zone Act; and | ||||||
6 | (E) has not previously been used in Illinois in | ||||||
7 | such a manner and by
such a person as would qualify for | ||||||
8 | the credit provided by this subsection
(e) or | ||||||
9 | subsection (f). | ||||||
10 | (3) For purposes of this subsection (e), | ||||||
11 | "manufacturing" means
the material staging and production | ||||||
12 | of tangible personal property by
procedures commonly | ||||||
13 | regarded as manufacturing, processing, fabrication, or
| ||||||
14 | assembling which changes some existing material into new | ||||||
15 | shapes, new
qualities, or new combinations. For purposes | ||||||
16 | of this subsection
(e) the term "mining" shall have the | ||||||
17 | same meaning as the term "mining" in
Section 613(c) of the | ||||||
18 | Internal Revenue Code. For purposes of this subsection
| ||||||
19 | (e), the term "retailing" means the sale of tangible | ||||||
20 | personal property for use or consumption and not for | ||||||
21 | resale, or
services rendered in conjunction with the sale | ||||||
22 | of tangible personal property for use or consumption and | ||||||
23 | not for resale. For purposes of this subsection (e), | ||||||
24 | "tangible personal property" has the same meaning as when | ||||||
25 | that term is used in the Retailers' Occupation Tax Act, | ||||||
26 | and, for taxable years ending after December 31, 2008, |
| |||||||
| |||||||
1 | does not include the generation, transmission, or | ||||||
2 | distribution of electricity. | ||||||
3 | (4) The basis of qualified property shall be the basis
| ||||||
4 | used to compute the depreciation deduction for federal | ||||||
5 | income tax purposes. | ||||||
6 | (5) If the basis of the property for federal income | ||||||
7 | tax depreciation
purposes is increased after it has been | ||||||
8 | placed in service in Illinois by
the taxpayer, the amount | ||||||
9 | of such increase shall be deemed property placed
in | ||||||
10 | service on the date of such increase in basis. | ||||||
11 | (6) The term "placed in service" shall have the same
| ||||||
12 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
13 | (7) If during any taxable year, any property ceases to
| ||||||
14 | be qualified property in the hands of the taxpayer within | ||||||
15 | 48 months after
being placed in service, or the situs of | ||||||
16 | any qualified property is
moved outside Illinois within 48 | ||||||
17 | months after being placed in service, the
Personal | ||||||
18 | Property Tax Replacement Income Tax for such taxable year | ||||||
19 | shall be
increased. Such increase shall be determined by | ||||||
20 | (i) recomputing the
investment credit which would have | ||||||
21 | been allowed for the year in which
credit for such | ||||||
22 | property was originally allowed by eliminating such
| ||||||
23 | property from such computation and, (ii) subtracting such | ||||||
24 | recomputed credit
from the amount of credit previously | ||||||
25 | allowed. For the purposes of this
paragraph (7), a | ||||||
26 | reduction of the basis of qualified property resulting
|
| |||||||
| |||||||
1 | from a redetermination of the purchase price shall be | ||||||
2 | deemed a disposition
of qualified property to the extent | ||||||
3 | of such reduction. | ||||||
4 | (8) Unless the investment credit is extended by law, | ||||||
5 | the
basis of qualified property shall not include costs | ||||||
6 | incurred after
December 31, 2018, except for costs | ||||||
7 | incurred pursuant to a binding
contract entered into on or | ||||||
8 | before December 31, 2018. | ||||||
9 | (9) Each taxable year ending before December 31, 2000, | ||||||
10 | a partnership may
elect to pass through to its
partners | ||||||
11 | the credits to which the partnership is entitled under | ||||||
12 | this subsection
(e) for the taxable year. A partner may | ||||||
13 | use the credit allocated to him or her
under this | ||||||
14 | paragraph only against the tax imposed in subsections (c) | ||||||
15 | and (d) of
this Section. If the partnership makes that | ||||||
16 | election, those credits shall be
allocated among the | ||||||
17 | partners in the partnership in accordance with the rules
| ||||||
18 | set forth in Section 704(b) of the Internal Revenue Code, | ||||||
19 | and the rules
promulgated under that Section, and the | ||||||
20 | allocated amount of the credits shall
be allowed to the | ||||||
21 | partners for that taxable year. The partnership shall make
| ||||||
22 | this election on its Personal Property Tax Replacement | ||||||
23 | Income Tax return for
that taxable year. The election to | ||||||
24 | pass through the credits shall be
irrevocable. | ||||||
25 | For taxable years ending on or after December 31, | ||||||
26 | 2000, a
partner that qualifies its
partnership for a |
| |||||||
| |||||||
1 | subtraction under subparagraph (I) of paragraph (2) of
| ||||||
2 | subsection (d) of Section 203 or a shareholder that | ||||||
3 | qualifies a Subchapter S
corporation for a subtraction | ||||||
4 | under subparagraph (S) of paragraph (2) of
subsection (b) | ||||||
5 | of Section 203 shall be allowed a credit under this | ||||||
6 | subsection
(e) equal to its share of the credit earned | ||||||
7 | under this subsection (e) during
the taxable year by the | ||||||
8 | partnership or Subchapter S corporation, determined in
| ||||||
9 | accordance with the determination of income and | ||||||
10 | distributive share of
income under Sections 702 and 704 | ||||||
11 | and Subchapter S of the Internal Revenue
Code. This | ||||||
12 | paragraph is exempt from the provisions of Section 250. | ||||||
13 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
14 | Redevelopment Zone ; Clean Energy Empowerment Zone . | ||||||
15 | (1) A taxpayer shall be allowed a credit against the | ||||||
16 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
17 | investment in qualified
property which is placed in | ||||||
18 | service in an Enterprise Zone created
pursuant to the | ||||||
19 | Illinois Enterprise Zone Act or, for property placed in | ||||||
20 | service on or after July 1, 2006, a River Edge | ||||||
21 | Redevelopment Zone established pursuant to the River Edge | ||||||
22 | Redevelopment Zone Act , or for investment in renewable | ||||||
23 | energy enterprises located in Clean Energy Empowerment | ||||||
24 | Zones created pursuant to the Energy Community | ||||||
25 | Reinvestment Act . For partners, shareholders
of Subchapter | ||||||
26 | S corporations, and owners of limited liability companies,
|
| |||||||
| |||||||
1 | if the liability company is treated as a partnership for | ||||||
2 | purposes of
federal and State income taxation, there shall | ||||||
3 | be allowed a credit under
this subsection (f) to be | ||||||
4 | determined in accordance with the determination
of income | ||||||
5 | and distributive share of income under Sections 702 and | ||||||
6 | 704 and
Subchapter S of the Internal Revenue Code. The | ||||||
7 | credit shall be .5% of the
basis for such property. The | ||||||
8 | credit shall be available only in the taxable
year in | ||||||
9 | which the property is placed in service in the Enterprise | ||||||
10 | Zone or River Edge Redevelopment Zone and
shall not be | ||||||
11 | allowed to the extent that it would reduce a taxpayer's
| ||||||
12 | liability for the tax imposed by subsections (a) and (b) | ||||||
13 | of this Section to
below zero. For tax years ending on or | ||||||
14 | after December 31, 1985, the credit
shall be allowed for | ||||||
15 | the tax year in which the property is placed in
service, | ||||||
16 | or, if the amount of the credit exceeds the tax liability | ||||||
17 | for that
year, whether it exceeds the original liability | ||||||
18 | or the liability as later
amended, such excess may be | ||||||
19 | carried forward and applied to the tax
liability of the 5 | ||||||
20 | taxable years following the excess credit year.
The credit | ||||||
21 | shall be applied to the earliest year for which there is a
| ||||||
22 | liability. If there is credit from more than one tax year | ||||||
23 | that is available
to offset a liability, the credit | ||||||
24 | accruing first in time shall be applied
first. | ||||||
25 | (2) The term qualified property means property which: | ||||||
26 | (A) is tangible, whether new or used, including |
| |||||||
| |||||||
1 | buildings and
structural components of buildings; | ||||||
2 | (B) is depreciable pursuant to Section 167 of the | ||||||
3 | Internal Revenue
Code, except that "3-year property" | ||||||
4 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
5 | eligible for the credit provided by this subsection | ||||||
6 | (f); | ||||||
7 | (C) is acquired by purchase as defined in Section | ||||||
8 | 179(d) of
the Internal Revenue Code; | ||||||
9 | (D) is used in the Enterprise Zone or River Edge | ||||||
10 | Redevelopment Zone by the taxpayer; and | ||||||
11 | (E) has not been previously used in Illinois in | ||||||
12 | such a manner and by
such a person as would qualify for | ||||||
13 | the credit provided by this subsection
(f) or | ||||||
14 | subsection (e). | ||||||
15 | (3) The basis of qualified property shall be the basis | ||||||
16 | used to compute
the depreciation deduction for federal | ||||||
17 | income tax purposes. | ||||||
18 | (4) If the basis of the property for federal income | ||||||
19 | tax depreciation
purposes is increased after it has been | ||||||
20 | placed in service in the Enterprise
Zone or River Edge | ||||||
21 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
22 | increase shall be deemed property
placed in service on the | ||||||
23 | date of such increase in basis. | ||||||
24 | (5) The term "placed in service" shall have the same | ||||||
25 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
26 | (6) If during any taxable year, any property ceases to |
| |||||||
| |||||||
1 | be qualified
property in the hands of the taxpayer within | ||||||
2 | 48 months after being placed
in service, or the situs of | ||||||
3 | any qualified property is moved outside the
Enterprise | ||||||
4 | Zone or River Edge Redevelopment Zone within 48 months | ||||||
5 | after being placed in service, the tax
imposed under | ||||||
6 | subsections (a) and (b) of this Section for such taxable | ||||||
7 | year
shall be increased. Such increase shall be determined | ||||||
8 | by (i) recomputing
the investment credit which would have | ||||||
9 | been allowed for the year in which
credit for such | ||||||
10 | property was originally allowed by eliminating such
| ||||||
11 | property from such computation, and (ii) subtracting such | ||||||
12 | recomputed credit
from the amount of credit previously | ||||||
13 | allowed. For the purposes of this
paragraph (6), a | ||||||
14 | reduction of the basis of qualified property resulting
| ||||||
15 | from a redetermination of the purchase price shall be | ||||||
16 | deemed a disposition
of qualified property to the extent | ||||||
17 | of such reduction. | ||||||
18 | (7) There shall be allowed an additional credit equal | ||||||
19 | to 0.5% of the basis of qualified property placed in | ||||||
20 | service during the taxable year in a River Edge | ||||||
21 | Redevelopment Zone, provided such property is placed in | ||||||
22 | service on or after July 1, 2006, and the taxpayer's base | ||||||
23 | employment within Illinois has increased by 1% or more | ||||||
24 | over the preceding year as determined by the taxpayer's | ||||||
25 | employment records filed with the Illinois Department of | ||||||
26 | Employment Security. Taxpayers who are new to Illinois |
| |||||||
| |||||||
1 | shall be deemed to have met the 1% growth in base | ||||||
2 | employment for the first year in which they file | ||||||
3 | employment records with the Illinois Department of | ||||||
4 | Employment Security. If, in any year, the increase in base | ||||||
5 | employment within Illinois over the preceding year is less | ||||||
6 | than 1%, the additional credit shall be limited to that | ||||||
7 | percentage times a fraction, the numerator of which is | ||||||
8 | 0.5% and the denominator of which is 1%, but shall not | ||||||
9 | exceed 0.5%.
| ||||||
10 | (8) For taxable years beginning on or after January 1, | ||||||
11 | 2021, there shall be allowed an Enterprise Zone | ||||||
12 | construction jobs credit against the taxes imposed under | ||||||
13 | subsections (a) and (b) of this Section as provided in | ||||||
14 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
15 | The credit or credits may not reduce the taxpayer's | ||||||
16 | liability to less than zero. If the amount of the credit or | ||||||
17 | credits exceeds the taxpayer's liability, the excess may | ||||||
18 | be carried forward and applied against the taxpayer's | ||||||
19 | liability in succeeding calendar years in the same manner | ||||||
20 | provided under paragraph (4) of Section 211 of this Act. | ||||||
21 | The credit or credits shall be applied to the earliest | ||||||
22 | year for which there is a tax liability. If there are | ||||||
23 | credits from more than one taxable year that are available | ||||||
24 | to offset a liability, the earlier credit shall be applied | ||||||
25 | first. | ||||||
26 | For partners, shareholders of Subchapter S |
| |||||||
| |||||||
1 | corporations, and owners of limited liability companies, | ||||||
2 | if the liability company is treated as a partnership for | ||||||
3 | the purposes of federal and State income taxation, there | ||||||
4 | shall be allowed a credit under this Section to be | ||||||
5 | determined in accordance with the determination of income | ||||||
6 | and distributive share of income under Sections 702 and | ||||||
7 | 704 and Subchapter S of the Internal Revenue Code. | ||||||
8 | The total aggregate amount of credits awarded under | ||||||
9 | the Blue Collar Jobs Act (Article 20 of Public Act 101-9 | ||||||
10 | this amendatory Act of the 101st General Assembly ) shall | ||||||
11 | not exceed $20,000,000 in any State fiscal year . | ||||||
12 | This paragraph (8) is exempt from the provisions of | ||||||
13 | Section 250. | ||||||
14 | (g) (Blank). | ||||||
15 | (h) Investment credit; High Impact Business. | ||||||
16 | (1) Subject to subsections (b) and (b-5) of Section
| ||||||
17 | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall | ||||||
18 | be allowed a credit
against the tax imposed by subsections | ||||||
19 | (a) and (b) of this Section for
investment in qualified
| ||||||
20 | property which is placed in service by a Department of | ||||||
21 | Commerce and Economic Opportunity
designated High Impact | ||||||
22 | Business. The credit shall be .5% of the basis
for such | ||||||
23 | property. The credit shall not be available (i) until the | ||||||
24 | minimum
investments in qualified property set forth in | ||||||
25 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
26 | Enterprise Zone Act have been satisfied
or (ii) until the |
| |||||||
| |||||||
1 | time authorized in subsection (b-5) of the Illinois
| ||||||
2 | Enterprise Zone Act for entities designated as High Impact | ||||||
3 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
4 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
5 | Act, and shall not be allowed to the extent that it would
| ||||||
6 | reduce a taxpayer's liability for the tax imposed by | ||||||
7 | subsections (a) and (b) of
this Section to below zero. The | ||||||
8 | credit applicable to such investments shall be
taken in | ||||||
9 | the taxable year in which such investments have been | ||||||
10 | completed. The
credit for additional investments beyond | ||||||
11 | the minimum investment by a designated
high impact | ||||||
12 | business authorized under subdivision (a)(3)(A) of Section | ||||||
13 | 5.5 of
the Illinois Enterprise Zone Act shall be available | ||||||
14 | only in the taxable year in
which the property is placed in | ||||||
15 | service and shall not be allowed to the extent
that it | ||||||
16 | would reduce a taxpayer's liability for the tax imposed by | ||||||
17 | subsections
(a) and (b) of this Section to below zero.
For | ||||||
18 | tax years ending on or after December 31, 1987, the credit | ||||||
19 | shall be
allowed for the tax year in which the property is | ||||||
20 | placed in service, or, if
the amount of the credit exceeds | ||||||
21 | the tax liability for that year, whether
it exceeds the | ||||||
22 | original liability or the liability as later amended, such
| ||||||
23 | excess may be carried forward and applied to the tax | ||||||
24 | liability of the 5
taxable years following the excess | ||||||
25 | credit year. The credit shall be
applied to the earliest | ||||||
26 | year for which there is a liability. If there is
credit |
| |||||||
| |||||||
1 | from more than one tax year that is available to offset a | ||||||
2 | liability,
the credit accruing first in time shall be | ||||||
3 | applied first. | ||||||
4 | Changes made in this subdivision (h)(1) by Public Act | ||||||
5 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
6 | reflect existing law. | ||||||
7 | (2) The term qualified property means property which: | ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and
structural components of buildings; | ||||||
10 | (B) is depreciable pursuant to Section 167 of the | ||||||
11 | Internal Revenue
Code, except that "3-year property" | ||||||
12 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
13 | eligible for the credit provided by this subsection | ||||||
14 | (h); | ||||||
15 | (C) is acquired by purchase as defined in Section | ||||||
16 | 179(d) of the
Internal Revenue Code; and | ||||||
17 | (D) is not eligible for the Enterprise Zone | ||||||
18 | Investment Credit provided
by subsection (f) of this | ||||||
19 | Section. | ||||||
20 | (3) The basis of qualified property shall be the basis | ||||||
21 | used to compute
the depreciation deduction for federal | ||||||
22 | income tax purposes. | ||||||
23 | (4) If the basis of the property for federal income | ||||||
24 | tax depreciation
purposes is increased after it has been | ||||||
25 | placed in service in a federally
designated Foreign Trade | ||||||
26 | Zone or Sub-Zone located in Illinois by the taxpayer,
the |
| |||||||
| |||||||
1 | amount of such increase shall be deemed property placed in | ||||||
2 | service on
the date of such increase in basis. | ||||||
3 | (5) The term "placed in service" shall have the same | ||||||
4 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
5 | (6) If during any taxable year ending on or before | ||||||
6 | December 31, 1996,
any property ceases to be qualified
| ||||||
7 | property in the hands of the taxpayer within 48 months | ||||||
8 | after being placed
in service, or the situs of any | ||||||
9 | qualified property is moved outside
Illinois within 48 | ||||||
10 | months after being placed in service, the tax imposed
| ||||||
11 | under subsections (a) and (b) of this Section for such | ||||||
12 | taxable year shall
be increased. Such increase shall be | ||||||
13 | determined by (i) recomputing the
investment credit which | ||||||
14 | would have been allowed for the year in which
credit for | ||||||
15 | such property was originally allowed by eliminating such
| ||||||
16 | property from such computation, and (ii) subtracting such | ||||||
17 | recomputed credit
from the amount of credit previously | ||||||
18 | allowed. For the purposes of this
paragraph (6), a | ||||||
19 | reduction of the basis of qualified property resulting
| ||||||
20 | from a redetermination of the purchase price shall be | ||||||
21 | deemed a disposition
of qualified property to the extent | ||||||
22 | of such reduction. | ||||||
23 | (7) Beginning with tax years ending after December 31, | ||||||
24 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
25 | subsection (h) and thereby is
granted a tax abatement and | ||||||
26 | the taxpayer relocates its entire facility in
violation of |
| |||||||
| |||||||
1 | the explicit terms and length of the contract under | ||||||
2 | Section
18-183 of the Property Tax Code, the tax imposed | ||||||
3 | under subsections
(a) and (b) of this Section shall be | ||||||
4 | increased for the taxable year
in which the taxpayer | ||||||
5 | relocated its facility by an amount equal to the
amount of | ||||||
6 | credit received by the taxpayer under this subsection (h). | ||||||
7 | (h-5) High Impact Business construction constructions jobs | ||||||
8 | credit. For taxable years beginning on or after January 1, | ||||||
9 | 2021, there shall also be allowed a High Impact Business | ||||||
10 | construction jobs credit against the tax imposed under | ||||||
11 | subsections (a) and (b) of this Section as provided in | ||||||
12 | subsections (i) and (j) of Section 5.5 of the Illinois | ||||||
13 | Enterprise Zone Act. | ||||||
14 | The credit or credits may not reduce the taxpayer's | ||||||
15 | liability to less than zero. If the amount of the credit or | ||||||
16 | credits exceeds the taxpayer's liability, the excess may be | ||||||
17 | carried forward and applied against the taxpayer's liability | ||||||
18 | in succeeding calendar years in the manner provided under | ||||||
19 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
20 | shall be applied to the earliest year for which there is a tax | ||||||
21 | liability. If there are credits from more than one taxable | ||||||
22 | year that are available to offset a liability, the earlier | ||||||
23 | credit shall be applied first. | ||||||
24 | For partners, shareholders of Subchapter S corporations, | ||||||
25 | and owners of limited liability companies, if the liability | ||||||
26 | company is treated as a partnership for the purposes of |
| |||||||
| |||||||
1 | federal and State income taxation, there shall be allowed a | ||||||
2 | credit under this Section to be determined in accordance with | ||||||
3 | the determination of income and distributive share of income | ||||||
4 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
5 | Revenue Code. | ||||||
6 | The total aggregate amount of credits awarded under the | ||||||
7 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
8 | amendatory Act of the 101st General Assembly ) shall not exceed | ||||||
9 | $20,000,000 in any State fiscal year . | ||||||
10 | This subsection (h-5) is exempt from the provisions of | ||||||
11 | Section 250. | ||||||
12 | (i) Credit for Personal Property Tax Replacement Income | ||||||
13 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
14 | shall be allowed
against the tax imposed by
subsections (a) | ||||||
15 | and (b) of this Section for the tax imposed by subsections (c)
| ||||||
16 | and (d) of this Section. This credit shall be computed by | ||||||
17 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
18 | Section by a fraction, the numerator
of which is base income | ||||||
19 | allocable to Illinois and the denominator of which is
Illinois | ||||||
20 | base income, and further multiplying the product by the tax | ||||||
21 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
22 | Any credit earned on or after December 31, 1986 under
this | ||||||
23 | subsection which is unused in the year
the credit is computed | ||||||
24 | because it exceeds the tax liability imposed by
subsections | ||||||
25 | (a) and (b) for that year (whether it exceeds the original
| ||||||
26 | liability or the liability as later amended) may be carried |
| |||||||
| |||||||
1 | forward and
applied to the tax liability imposed by | ||||||
2 | subsections (a) and (b) of the 5
taxable years following the | ||||||
3 | excess credit year, provided that no credit may
be carried | ||||||
4 | forward to any year ending on or
after December 31, 2003. This | ||||||
5 | credit shall be
applied first to the earliest year for which | ||||||
6 | there is a liability. If
there is a credit under this | ||||||
7 | subsection from more than one tax year that is
available to | ||||||
8 | offset a liability the earliest credit arising under this
| ||||||
9 | subsection shall be applied first. | ||||||
10 | If, during any taxable year ending on or after December | ||||||
11 | 31, 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
12 | Section for which a taxpayer
has claimed a credit under this | ||||||
13 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
14 | shall also be reduced. Such reduction shall be
determined by | ||||||
15 | recomputing the credit to take into account the reduced tax
| ||||||
16 | imposed by subsections (c) and (d). If any portion of the
| ||||||
17 | reduced amount of credit has been carried to a different | ||||||
18 | taxable year, an
amended return shall be filed for such | ||||||
19 | taxable year to reduce the amount of
credit claimed. | ||||||
20 | (j) Training expense credit. Beginning with tax years | ||||||
21 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
22 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
23 | imposed by subsections (a) and (b) under this Section
for all | ||||||
24 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
25 | the taxpayer in Illinois or Illinois residents employed
| ||||||
26 | outside of Illinois by a taxpayer, for educational or |
| |||||||
| |||||||
1 | vocational training in
semi-technical or technical fields or | ||||||
2 | semi-skilled or skilled fields, which
were deducted from gross | ||||||
3 | income in the computation of taxable income. The
credit | ||||||
4 | against the tax imposed by subsections (a) and (b) shall be | ||||||
5 | 1.6% of
such training expenses. For partners, shareholders of | ||||||
6 | subchapter S
corporations, and owners of limited liability | ||||||
7 | companies, if the liability
company is treated as a | ||||||
8 | partnership for purposes of federal and State income
taxation, | ||||||
9 | there shall be allowed a credit under this subsection (j) to be
| ||||||
10 | determined in accordance with the determination of income and | ||||||
11 | distributive
share of income under Sections 702 and 704 and | ||||||
12 | subchapter S of the Internal
Revenue Code. | ||||||
13 | Any credit allowed under this subsection which is unused | ||||||
14 | in the year
the credit is earned may be carried forward to each | ||||||
15 | of the 5 taxable
years following the year for which the credit | ||||||
16 | is first computed until it is
used. This credit shall be | ||||||
17 | applied first to the earliest year for which
there is a | ||||||
18 | liability. If there is a credit under this subsection from | ||||||
19 | more
than one tax year that is available to offset a liability , | ||||||
20 | the earliest
credit arising under this subsection shall be | ||||||
21 | applied first. No carryforward
credit may be claimed in any | ||||||
22 | tax year ending on or after
December 31, 2003. | ||||||
23 | (k) Research and development credit. For tax years ending | ||||||
24 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
25 | beginning again for tax years ending on or after December 31, | ||||||
26 | 2004, and ending prior to January 1, 2027, a taxpayer shall be
|
| |||||||
| |||||||
1 | allowed a credit against the tax imposed by subsections (a) | ||||||
2 | and (b) of this
Section for increasing research activities in | ||||||
3 | this State. The credit
allowed against the tax imposed by | ||||||
4 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
5 | qualifying expenditures for increasing research activities
in | ||||||
6 | this State. For partners, shareholders of subchapter S | ||||||
7 | corporations, and
owners of limited liability companies, if | ||||||
8 | the liability company is treated as a
partnership for purposes | ||||||
9 | of federal and State income taxation, there shall be
allowed a | ||||||
10 | credit under this subsection to be determined in accordance | ||||||
11 | with the
determination of income and distributive share of | ||||||
12 | income under Sections 702 and
704 and subchapter S of the | ||||||
13 | Internal Revenue Code. | ||||||
14 | For purposes of this subsection, "qualifying expenditures" | ||||||
15 | means the
qualifying expenditures as defined for the federal | ||||||
16 | credit for increasing
research activities which would be | ||||||
17 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
18 | which are conducted in this State, "qualifying
expenditures | ||||||
19 | for increasing research activities in this State" means the
| ||||||
20 | excess of qualifying expenditures for the taxable year in | ||||||
21 | which incurred
over qualifying expenditures for the base | ||||||
22 | period, "qualifying expenditures
for the base period" means | ||||||
23 | the average of the qualifying expenditures for
each year in | ||||||
24 | the base period, and "base period" means the 3 taxable years
| ||||||
25 | immediately preceding the taxable year for which the | ||||||
26 | determination is
being made. |
| |||||||
| |||||||
1 | Any credit in excess of the tax liability for the taxable | ||||||
2 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
3 | unused credit shown on its final completed return carried over | ||||||
4 | as a credit
against the tax liability for the following 5 | ||||||
5 | taxable years or until it has
been fully used, whichever | ||||||
6 | occurs first; provided that no credit earned in a tax year | ||||||
7 | ending prior to December 31, 2003 may be carried forward to any | ||||||
8 | year ending on or after December 31, 2003. | ||||||
9 | If an unused credit is carried forward to a given year from | ||||||
10 | 2 or more
earlier years, that credit arising in the earliest | ||||||
11 | year will be applied
first against the tax liability for the | ||||||
12 | given year. If a tax liability for
the given year still | ||||||
13 | remains, the credit from the next earliest year will
then be | ||||||
14 | applied, and so on, until all credits have been used or no tax
| ||||||
15 | liability for the given year remains. Any remaining unused | ||||||
16 | credit or
credits then will be carried forward to the next | ||||||
17 | following year in which a
tax liability is incurred, except | ||||||
18 | that no credit can be carried forward to
a year which is more | ||||||
19 | than 5 years after the year in which the expense for
which the | ||||||
20 | credit is given was incurred. | ||||||
21 | No inference shall be drawn from Public Act 91-644 this | ||||||
22 | amendatory Act of the 91st General
Assembly in construing this | ||||||
23 | Section for taxable years beginning before January
1, 1999. | ||||||
24 | It is the intent of the General Assembly that the research | ||||||
25 | and development credit under this subsection (k) shall apply | ||||||
26 | continuously for all tax years ending on or after December 31, |
| |||||||
| |||||||
1 | 2004 and ending prior to January 1, 2027, including, but not | ||||||
2 | limited to, the period beginning on January 1, 2016 and ending | ||||||
3 | on July 6, 2017 ( the effective date of Public Act 100-22) this | ||||||
4 | amendatory Act of the 100th General Assembly . All actions | ||||||
5 | taken in reliance on the continuation of the credit under this | ||||||
6 | subsection (k) by any taxpayer are hereby validated. | ||||||
7 | (l) Environmental Remediation Tax Credit. | ||||||
8 | (i) For tax years ending after December 31, 1997 and | ||||||
9 | on or before
December 31, 2001, a taxpayer shall be | ||||||
10 | allowed a credit against the tax
imposed by subsections | ||||||
11 | (a) and (b) of this Section for certain amounts paid
for | ||||||
12 | unreimbursed eligible remediation costs, as specified in | ||||||
13 | this subsection.
For purposes of this Section, | ||||||
14 | "unreimbursed eligible remediation costs" means
costs | ||||||
15 | approved by the Illinois Environmental Protection Agency | ||||||
16 | ("Agency") under
Section 58.14 of the Environmental | ||||||
17 | Protection Act that were paid in performing
environmental | ||||||
18 | remediation at a site for which a No Further Remediation | ||||||
19 | Letter
was issued by the Agency and recorded under Section | ||||||
20 | 58.10 of the Environmental
Protection Act. The credit must | ||||||
21 | be claimed for the taxable year in which
Agency approval | ||||||
22 | of the eligible remediation costs is granted. The credit | ||||||
23 | is
not available to any taxpayer if the taxpayer or any | ||||||
24 | related party caused or
contributed to, in any material | ||||||
25 | respect, a release of regulated substances on,
in, or | ||||||
26 | under the site that was identified and addressed by the |
| |||||||
| |||||||
1 | remedial
action pursuant to the Site Remediation Program | ||||||
2 | of the Environmental Protection
Act. After the Pollution | ||||||
3 | Control Board rules are adopted pursuant to the
Illinois | ||||||
4 | Administrative Procedure Act for the administration and | ||||||
5 | enforcement of
Section 58.9 of the Environmental | ||||||
6 | Protection Act, determinations as to credit
availability | ||||||
7 | for purposes of this Section shall be made consistent with | ||||||
8 | those
rules. For purposes of this Section, "taxpayer" | ||||||
9 | includes a person whose tax
attributes the taxpayer has | ||||||
10 | succeeded to under Section 381 of the Internal
Revenue | ||||||
11 | Code and "related party" includes the persons disallowed a | ||||||
12 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
13 | Section 267 of the Internal
Revenue Code by virtue of | ||||||
14 | being a related taxpayer, as well as any of its
partners. | ||||||
15 | The credit allowed against the tax imposed by subsections | ||||||
16 | (a) and
(b) shall be equal to 25% of the unreimbursed | ||||||
17 | eligible remediation costs in
excess of $100,000 per site, | ||||||
18 | except that the $100,000 threshold shall not apply
to any | ||||||
19 | site contained in an enterprise zone as determined by the | ||||||
20 | Department of
Commerce and Community Affairs (now | ||||||
21 | Department of Commerce and Economic Opportunity). The | ||||||
22 | total credit allowed shall not exceed
$40,000 per year | ||||||
23 | with a maximum total of $150,000 per site. For partners | ||||||
24 | and
shareholders of subchapter S corporations, there shall | ||||||
25 | be allowed a credit
under this subsection to be determined | ||||||
26 | in accordance with the determination of
income and |
| |||||||
| |||||||
1 | distributive share of income under Sections 702 and 704 | ||||||
2 | and
subchapter S of the Internal Revenue Code. | ||||||
3 | (ii) A credit allowed under this subsection that is | ||||||
4 | unused in the year
the credit is earned may be carried | ||||||
5 | forward to each of the 5 taxable years
following the year | ||||||
6 | for which the credit is first earned until it is used.
The | ||||||
7 | term "unused credit" does not include any amounts of | ||||||
8 | unreimbursed eligible
remediation costs in excess of the | ||||||
9 | maximum credit per site authorized under
paragraph (i). | ||||||
10 | This credit shall be applied first to the earliest year
| ||||||
11 | for which there is a liability. If there is a credit under | ||||||
12 | this subsection
from more than one tax year that is | ||||||
13 | available to offset a liability, the
earliest credit | ||||||
14 | arising under this subsection shall be applied first. A
| ||||||
15 | credit allowed under this subsection may be sold to a | ||||||
16 | buyer as part of a sale
of all or part of the remediation | ||||||
17 | site for which the credit was granted. The
purchaser of a | ||||||
18 | remediation site and the tax credit shall succeed to the | ||||||
19 | unused
credit and remaining carry-forward period of the | ||||||
20 | seller. To perfect the
transfer, the assignor shall record | ||||||
21 | the transfer in the chain of title for the
site and provide | ||||||
22 | written notice to the Director of the Illinois Department | ||||||
23 | of
Revenue of the assignor's intent to sell the | ||||||
24 | remediation site and the amount of
the tax credit to be | ||||||
25 | transferred as a portion of the sale. In no event may a
| ||||||
26 | credit be transferred to any taxpayer if the taxpayer or a |
| |||||||
| |||||||
1 | related party would
not be eligible under the provisions | ||||||
2 | of subsection (i). | ||||||
3 | (iii) For purposes of this Section, the term "site" | ||||||
4 | shall have the same
meaning as under Section 58.2 of the | ||||||
5 | Environmental Protection Act. | ||||||
6 | (m) Education expense credit. Beginning with tax years | ||||||
7 | ending after
December 31, 1999, a taxpayer who
is the | ||||||
8 | custodian of one or more qualifying pupils shall be allowed a | ||||||
9 | credit
against the tax imposed by subsections (a) and (b) of | ||||||
10 | this Section for
qualified education expenses incurred on | ||||||
11 | behalf of the qualifying pupils.
The credit shall be equal to | ||||||
12 | 25% of qualified education expenses, but in no
event may the | ||||||
13 | total credit under this subsection claimed by a
family that is | ||||||
14 | the
custodian of qualifying pupils exceed (i) $500 for tax | ||||||
15 | years ending prior to December 31, 2017, and (ii) $750 for tax | ||||||
16 | years ending on or after December 31, 2017. In no event shall a | ||||||
17 | credit under
this subsection reduce the taxpayer's liability | ||||||
18 | under this Act to less than
zero. Notwithstanding any other | ||||||
19 | provision of law, for taxable years beginning on or after | ||||||
20 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
21 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
22 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
23 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
24 | of all other taxpayers. This subsection is exempt from the | ||||||
25 | provisions of Section 250 of this
Act. | ||||||
26 | For purposes of this subsection: |
| |||||||
| |||||||
1 | "Qualifying pupils" means individuals who (i) are | ||||||
2 | residents of the State of
Illinois, (ii) are under the age of | ||||||
3 | 21 at the close of the school year for
which a credit is | ||||||
4 | sought, and (iii) during the school year for which a credit
is | ||||||
5 | sought were full-time pupils enrolled in a kindergarten | ||||||
6 | through twelfth
grade education program at any school, as | ||||||
7 | defined in this subsection. | ||||||
8 | "Qualified education expense" means the amount incurred
on | ||||||
9 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
10 | book fees, and
lab fees at the school in which the pupil is | ||||||
11 | enrolled during the regular school
year. | ||||||
12 | "School" means any public or nonpublic elementary or | ||||||
13 | secondary school in
Illinois that is in compliance with Title | ||||||
14 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
15 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
16 | except that nothing shall be construed to require a child to
| ||||||
17 | attend any particular public or nonpublic school to qualify | ||||||
18 | for the credit
under this Section. | ||||||
19 | "Custodian" means, with respect to qualifying pupils, an | ||||||
20 | Illinois resident
who is a parent, the parents, a legal | ||||||
21 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
22 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
23 | credit.
| ||||||
24 | (i) For tax years ending on or after December 31, | ||||||
25 | 2006, a taxpayer shall be allowed a credit against the tax | ||||||
26 | imposed by subsections (a) and (b) of this Section for |
| |||||||
| |||||||
1 | certain amounts paid for unreimbursed eligible remediation | ||||||
2 | costs, as specified in this subsection. For purposes of | ||||||
3 | this Section, "unreimbursed eligible remediation costs" | ||||||
4 | means costs approved by the Illinois Environmental | ||||||
5 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
6 | Environmental Protection Act that were paid in performing | ||||||
7 | environmental remediation at a site within a River Edge | ||||||
8 | Redevelopment Zone for which a No Further Remediation | ||||||
9 | Letter was issued by the Agency and recorded under Section | ||||||
10 | 58.10 of the Environmental Protection Act. The credit must | ||||||
11 | be claimed for the taxable year in which Agency approval | ||||||
12 | of the eligible remediation costs is granted. The credit | ||||||
13 | is not available to any taxpayer if the taxpayer or any | ||||||
14 | related party caused or contributed to, in any material | ||||||
15 | respect, a release of regulated substances on, in, or | ||||||
16 | under the site that was identified and addressed by the | ||||||
17 | remedial action pursuant to the Site Remediation Program | ||||||
18 | of the Environmental Protection Act. Determinations as to | ||||||
19 | credit availability for purposes of this Section shall be | ||||||
20 | made consistent with rules adopted by the Pollution | ||||||
21 | Control Board pursuant to the Illinois Administrative | ||||||
22 | Procedure Act for the administration and enforcement of | ||||||
23 | Section 58.9 of the Environmental Protection Act. For | ||||||
24 | purposes of this Section, "taxpayer" includes a person | ||||||
25 | whose tax attributes the taxpayer has succeeded to under | ||||||
26 | Section 381 of the Internal Revenue Code and "related |
| |||||||
| |||||||
1 | party" includes the persons disallowed a deduction for | ||||||
2 | losses by paragraphs (b), (c), and (f)(1) of Section 267 | ||||||
3 | of the Internal Revenue Code by virtue of being a related | ||||||
4 | taxpayer, as well as any of its partners. The credit | ||||||
5 | allowed against the tax imposed by subsections (a) and (b) | ||||||
6 | shall be equal to 25% of the unreimbursed eligible | ||||||
7 | remediation costs in excess of $100,000 per site. | ||||||
8 | (ii) A credit allowed under this subsection that is | ||||||
9 | unused in the year the credit is earned may be carried | ||||||
10 | forward to each of the 5 taxable years following the year | ||||||
11 | for which the credit is first earned until it is used. This | ||||||
12 | credit shall be applied first to the earliest year for | ||||||
13 | which there is a liability. If there is a credit under this | ||||||
14 | subsection from more than one tax year that is available | ||||||
15 | to offset a liability, the earliest credit arising under | ||||||
16 | this subsection shall be applied first. A credit allowed | ||||||
17 | under this subsection may be sold to a buyer as part of a | ||||||
18 | sale of all or part of the remediation site for which the | ||||||
19 | credit was granted. The purchaser of a remediation site | ||||||
20 | and the tax credit shall succeed to the unused credit and | ||||||
21 | remaining carry-forward period of the seller. To perfect | ||||||
22 | the transfer, the assignor shall record the transfer in | ||||||
23 | the chain of title for the site and provide written notice | ||||||
24 | to the Director of the Illinois Department of Revenue of | ||||||
25 | the assignor's intent to sell the remediation site and the | ||||||
26 | amount of the tax credit to be transferred as a portion of |
| |||||||
| |||||||
1 | the sale. In no event may a credit be transferred to any | ||||||
2 | taxpayer if the taxpayer or a related party would not be | ||||||
3 | eligible under the provisions of subsection (i). | ||||||
4 | (iii) For purposes of this Section, the term "site" | ||||||
5 | shall have the same meaning as under Section 58.2 of the | ||||||
6 | Environmental Protection Act. | ||||||
7 | (o) For each of taxable years during the Compassionate Use | ||||||
8 | of Medical Cannabis Program, a surcharge is imposed on all | ||||||
9 | taxpayers on income arising from the sale or exchange of | ||||||
10 | capital assets, depreciable business property, real property | ||||||
11 | used in the trade or business, and Section 197 intangibles of | ||||||
12 | an organization registrant under the Compassionate Use of | ||||||
13 | Medical Cannabis Program Act. The amount of the surcharge is | ||||||
14 | equal to the amount of federal income tax liability for the | ||||||
15 | taxable year attributable to those sales and exchanges. The | ||||||
16 | surcharge imposed does not apply if: | ||||||
17 | (1) the medical cannabis cultivation center | ||||||
18 | registration, medical cannabis dispensary registration, or | ||||||
19 | the property of a registration is transferred as a result | ||||||
20 | of any of the following: | ||||||
21 | (A) bankruptcy, a receivership, or a debt | ||||||
22 | adjustment initiated by or against the initial | ||||||
23 | registration or the substantial owners of the initial | ||||||
24 | registration; | ||||||
25 | (B) cancellation, revocation, or termination of | ||||||
26 | any registration by the Illinois Department of Public |
| |||||||
| |||||||
1 | Health; | ||||||
2 | (C) a determination by the Illinois Department of | ||||||
3 | Public Health that transfer of the registration is in | ||||||
4 | the best interests of Illinois qualifying patients as | ||||||
5 | defined by the Compassionate Use of Medical Cannabis | ||||||
6 | Program Act; | ||||||
7 | (D) the death of an owner of the equity interest in | ||||||
8 | a registrant; | ||||||
9 | (E) the acquisition of a controlling interest in | ||||||
10 | the stock or substantially all of the assets of a | ||||||
11 | publicly traded company; | ||||||
12 | (F) a transfer by a parent company to a wholly | ||||||
13 | owned subsidiary; or | ||||||
14 | (G) the transfer or sale to or by one person to | ||||||
15 | another person where both persons were initial owners | ||||||
16 | of the registration when the registration was issued; | ||||||
17 | or | ||||||
18 | (2) the cannabis cultivation center registration, | ||||||
19 | medical cannabis dispensary registration, or the | ||||||
20 | controlling interest in a registrant's property is | ||||||
21 | transferred in a transaction to lineal descendants in | ||||||
22 | which no gain or loss is recognized or as a result of a | ||||||
23 | transaction in accordance with Section 351 of the Internal | ||||||
24 | Revenue Code in which no gain or loss is recognized. | ||||||
25 | (Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for | ||||||
26 | effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
| |||||||
| |||||||
1 | 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.) | ||||||
2 | Section 90-30. The Retailers' Occupation Tax Act is | ||||||
3 | amended by adding Section 5k-5 as follows: | ||||||
4 | (35 ILCS 120/5k-5 new) | ||||||
5 | Sec. 5k-5. Building materials exemption; Clean Energy | ||||||
6 | Empowerment Zone. Each retailer who makes a sale of building | ||||||
7 | materials to be incorporated into renewable energy projects in | ||||||
8 | a Clean Energy Empowerment Zone established under the Energy | ||||||
9 | Community Reinvestment Act may deduct receipts from such sales | ||||||
10 | when calculating the tax imposed by this Act. A renewable | ||||||
11 | energy enterprise or other entity shall not make tax-free | ||||||
12 | purchases under this Section unless it has an active exemption | ||||||
13 | certificate at the time of purchase, which shall be issued by | ||||||
14 | the Department in a form prescribed by the Department. The | ||||||
15 | Department shall adopt by rule all other requirements | ||||||
16 | necessary for the implementation and operation of this | ||||||
17 | Section. | ||||||
18 | Section 90-35. The School Code is amended by adding | ||||||
19 | Section 2-3.182 as follows: | ||||||
20 | (105 ILCS 5/2-3.182 new) | ||||||
21 | Sec. 2-3.182. Clean energy jobs curriculum. | ||||||
22 | (a) The General Assembly recognizes that clean energy is a |
| |||||||
| |||||||
1 | growing and important sector of the State's economy and that | ||||||
2 | significant job opportunity exists in the sector. Consistent | ||||||
3 | with the Clean Jobs, Workforce and Contractor Equity Act, the | ||||||
4 | Board shall participate in the development of the clean energy | ||||||
5 | jobs curriculum convened by the Department of Commerce and | ||||||
6 | Economic Opportunity. The Board shall identify and | ||||||
7 | collaboratively with stakeholders identified by the Board | ||||||
8 | develop curriculum based on anticipated clean energy job | ||||||
9 | availability and growth including participation from | ||||||
10 | stakeholders engaged in delivering existing clean energy jobs | ||||||
11 | workforce development programs in Illinois, specifically those | ||||||
12 | programs tailored to members of economically disadvantaged | ||||||
13 | communities, members of environmental justice communities, | ||||||
14 | communities of color, persons with a criminal record, persons | ||||||
15 | who are or were in the child welfare system, displaced energy | ||||||
16 | workers, and members of any of these groups who are also women | ||||||
17 | or transgender persons, as well as including youth. Clean | ||||||
18 | energy jobs considered shall be consistent with "clean energy | ||||||
19 | jobs" as defined in the Clean Jobs, Workforce and Contractor | ||||||
20 | Equity Act, including, but not limited to, solar photovoltaic, | ||||||
21 | solar thermal, wind energy, energy efficiency, site | ||||||
22 | assessment, sales, and back office. | ||||||
23 | (b) In the development of the clean energy jobs | ||||||
24 | curriculum, the Board shall consider broad occupational | ||||||
25 | training applicable to the general construction sector as well | ||||||
26 | as sector-specific skills, including training on the |
| |||||||
| |||||||
1 | manufacture and installation of healthier building materials | ||||||
2 | that contain fewer hazardous chemicals. | ||||||
3 | (c) Consideration should be given to inclusion of skills | ||||||
4 | applicable to trainees for whom secondary and higher education | ||||||
5 | has not been available. | ||||||
6 | Section 90-40. The Public Utilities Act is amended by | ||||||
7 | changing Sections 2-107, 8-103B, 9-220.3, 9-227, 10-104, | ||||||
8 | 16-107, 16-107.5, 16-107.6, 16-111.5, and 16-128B and by | ||||||
9 | adding Sections 4-604, 4-605, 8-104.1, 8-512, 9-222.1B, | ||||||
10 | 16-105.17, 16-107.7, 16-107.8, 16-108, 16-108.5, 16-108.9, | ||||||
11 | 16-108.18, 16-111.10, and 16-131 as follows:
| ||||||
12 | (220 ILCS 5/2-107) (from Ch. 111 2/3, par. 2-107)
| ||||||
13 | Sec. 2-107. The office of the Commission shall be in | ||||||
14 | Springfield, but
the Commission may, with the approval of the | ||||||
15 | Governor, establish and
maintain branch offices at places | ||||||
16 | other than the seat of government.
Such office shall be open | ||||||
17 | for business between the hours of 8:30 a.m.
and 5:00 p.m. | ||||||
18 | throughout the year, and one or more responsible persons
to be | ||||||
19 | designated by the executive director shall be on duty
at all | ||||||
20 | times in immediate charge thereof.
| ||||||
21 | The Commission shall hold stated meetings at least once a | ||||||
22 | month and
may hold such special meetings as it may deem | ||||||
23 | necessary at any place
within the State. At each regular and | ||||||
24 | special meeting that is open to the public, members of the |
| |||||||
| |||||||
1 | public shall be afforded time, subject to reasonable | ||||||
2 | constraints, to make comments to or to ask questions of the | ||||||
3 | Commission. In any contested or rulemaking proceeding, at the | ||||||
4 | request of any party or at least 5 members of the public, the | ||||||
5 | Commission shall hold at least one public hearing, at a time | ||||||
6 | and place accessible and convenient for affected customers to | ||||||
7 | participate, where members of the public are invited to | ||||||
8 | participate and present public comments in accordance with 2 | ||||||
9 | Ill. Adm. Code 1700.10. The hearing must take place at least 30 | ||||||
10 | days prior to the Commission's final order on the case. | ||||||
11 | The Commission shall provide a web site and a toll-free | ||||||
12 | telephone number to accept comments from Illinois residents | ||||||
13 | regarding any matter under the auspices of the Commission or | ||||||
14 | before the Commission. The Commission staff shall report, in a | ||||||
15 | manner established by the Commission that is consistent with | ||||||
16 | the Commission's rules regarding ex parte communications, to | ||||||
17 | the full Commission comments and suggestions received through | ||||||
18 | both venues before all relevant votes of the Commission.
| ||||||
19 | The Commission may, for the authentication of its records, | ||||||
20 | process
and proceedings, adopt, keep and use a common seal, of | ||||||
21 | which seal
judicial notice shall be taken in all courts of this | ||||||
22 | State; and any
process, notice, order or other paper which the | ||||||
23 | Commission may be
authorized by law to issue shall be deemed | ||||||
24 | sufficient if signed and
certified by the Chairman of the | ||||||
25 | Commission or his or her designee, either
by hand or by | ||||||
26 | facsimile, and with such
seal attached; and all acts, orders, |
| |||||||
| |||||||
1 | proceedings, rules, entries,
minutes, schedules and records of | ||||||
2 | the Commission, and all reports and
documents filed with the | ||||||
3 | Commission, may be proved in any court of this
State by a copy | ||||||
4 | thereof, certified to by the Chairman of the
Commission, with | ||||||
5 | the seal of the Commission attached. | ||||||
6 | Notwithstanding any other provision of this Section, the | ||||||
7 | Commission's established procedures for accepting testimony | ||||||
8 | from Illinois residents on matters pending before the | ||||||
9 | Commission shall be consistent with the Commission's rules | ||||||
10 | regarding ex parte communications and due process.
| ||||||
11 | (Source: P.A. 95-127, eff. 8-13-07.)
| ||||||
12 | (220 ILCS 5/4-604 new) | ||||||
13 | Sec. 4-604. Electric and natural gas public utilities | ||||||
14 | ethical conduct and transparency. | ||||||
15 | (a) It is the policy of this State that, as regulated, | ||||||
16 | monopoly entities providing essential services, public | ||||||
17 | utilities must adhere to the highest standards of ethical | ||||||
18 | conduct. Recent events have demonstrated that at least one | ||||||
19 | public utility in this State has not adhered to the standards | ||||||
20 | of conduct expected by the State, and as such, has failed to | ||||||
21 | ensure safe, reliable service for customers at reasonable, | ||||||
22 | affordable rates. The General Assembly finds this breach of | ||||||
23 | the public trust, which has resulted in unreasonable rates for | ||||||
24 | some public utility customers, to be exceptionally concerning. | ||||||
25 | (b) It is in the public interest to ensure ethical public |
| |||||||
| |||||||
1 | utility conduct of the highest standards. It is therefore | ||||||
2 | necessary for the public interest, safety, and welfare of the | ||||||
3 | State and of public utility customers to develop rigorous | ||||||
4 | ethical standards with limitations on and heightened scrutiny | ||||||
5 | of public utility actions, expenditures and contracting, and | ||||||
6 | to provide increased transparency to ensure ethical public | ||||||
7 | utility conduct. The standards set forth in this Section and | ||||||
8 | in the Illinois Administrative Code rules implementing this | ||||||
9 | Section shall apply, to the extent practicable, to electric | ||||||
10 | and natural gas public utilities and their holding or parent | ||||||
11 | companies, affiliates, and service companies. The Commission | ||||||
12 | shall have the authority to create rules and emergency rules, | ||||||
13 | where applicable, to effectuate this Section. | ||||||
14 | (c) Public Utility Ethics Inspector. To ensure public | ||||||
15 | utilities meet the highest level of ethical standards, | ||||||
16 | including, but not limited to, those standards described in | ||||||
17 | this Section, the Commission shall, within 60 days after the | ||||||
18 | effective date of this amendatory Act of the 102nd General | ||||||
19 | Assembly, establish an Accountability Division at the | ||||||
20 | Commission, and shall create a new position at the Commission | ||||||
21 | of Public Utility Ethics Inspector whose responsibilities | ||||||
22 | shall include: | ||||||
23 | (1) hire and oversee independent monitors, as | ||||||
24 | described in subsection (d); | ||||||
25 | (2) oversee development and publication of annual | ||||||
26 | ethics audits of electric and natural gas public utilities |
| |||||||
| |||||||
1 | by independent monitors; | ||||||
2 | (3) supervise each independent monitor's monitoring, | ||||||
3 | auditing, investigation, enforcement, reporting, and | ||||||
4 | disciplinary activities, in addition to any other actions | ||||||
5 | required of the independent monitors. In the event an | ||||||
6 | independent monitor or the Public Utility Ethics Inspector | ||||||
7 | finds a public utility has not complied with the standards | ||||||
8 | set forth in this Section, or with administrative rules | ||||||
9 | implementing this Section, the Public Utility Ethics | ||||||
10 | Inspector shall detail such deficiencies in a report to | ||||||
11 | the Commission and shall include a recommendation for | ||||||
12 | Commission action. The Public Utility Ethics Inspector | ||||||
13 | shall report to the Executive Director of the Illinois | ||||||
14 | Commerce Commission. The Public Utility Ethics Inspector | ||||||
15 | shall have the authority to hire additional staff for the | ||||||
16 | Accountability Division as deemed necessary to fulfill the | ||||||
17 | duties of this Section. | ||||||
18 | (d) Independent monitors. Within 90 days after the | ||||||
19 | employment of the Public Utility Ethics Inspector by the | ||||||
20 | Commission, the Public Utility Ethics Inspector shall | ||||||
21 | establish new positions at the Illinois Commerce Commission | ||||||
22 | within the Accountability Division of independent monitors for | ||||||
23 | each public utility in the State. The role of the independent | ||||||
24 | monitors shall be to oversee electric and natural gas public | ||||||
25 | utilities' compliance with the standards described in this | ||||||
26 | Section, with 83 Illinois Administrative Code, and with any |
| |||||||
| |||||||
1 | other portion of the Code or any statutory obligation | ||||||
2 | regarding standards of ethical conduct. The independent | ||||||
3 | monitors may also have other duties as deemed appropriate by | ||||||
4 | the Public Utility Ethics Inspector. Independent monitors | ||||||
5 | shall: | ||||||
6 | (1) Work in coordination with the public utility's | ||||||
7 | Chief Compliance and Ethics Officer, as described in | ||||||
8 | subsection (e), to ensure the public utility complies with | ||||||
9 | the standards of conduct described in this Section, in the | ||||||
10 | Illinois Administrative Code, and any other applicable | ||||||
11 | authority, through investigation, enforcement, reporting, | ||||||
12 | and disciplinary activities. | ||||||
13 | (2) Document violations of the standards in this | ||||||
14 | Section or in related sections of the Illinois | ||||||
15 | Administrative Code and, in coordination with the | ||||||
16 | utility's Chief Compliance and Ethics Officer, ensure | ||||||
17 | appropriate internal disciplinary actions and transparent | ||||||
18 | reporting to the Commission.
In the event of violations of | ||||||
19 | the standards in this Section or in related sections of | ||||||
20 | the Illinois Administrative Code where the public utility | ||||||
21 | does not take disciplinary action, or where that action is | ||||||
22 | not aligned with the recommendation of the independent | ||||||
23 | monitor, the independent monitor shall, within 30 days, | ||||||
24 | report the violation, the independent monitor's | ||||||
25 | recommended disciplinary action, and the public utility's | ||||||
26 | actual disciplinary action, to the Public Utilities Ethics |
| |||||||
| |||||||
1 | Inspector, who shall, within 30 days, file a report with | ||||||
2 | the Commission describing the violation and related | ||||||
3 | recommendations. | ||||||
4 | (3) Recommend to the public utility any new internal | ||||||
5 | controls, policies, practices or procedures the public | ||||||
6 | utility should undertake in order to ensure compliance | ||||||
7 | with this Section and with related sections of the | ||||||
8 | Illinois Administrative Code. | ||||||
9 | (4) At least annually, the independent monitor for a | ||||||
10 | public utility shall publish an ethics audit to be filed | ||||||
11 | with the Commission. The ethics audit shall describe the | ||||||
12 | public utility's internal controls, policies, practices, | ||||||
13 | and procedures to comply with the standards in this | ||||||
14 | Section and in the Illinois Administrative Code, and shall | ||||||
15 | document all instances of noncompliance. If internal | ||||||
16 | disciplinary actions were taken related to ethical conduct | ||||||
17 | governed by this Section or related Illinois | ||||||
18 | Administrative Code, the report shall also describe the | ||||||
19 | conduct and the responsive disciplinary actions taken. The | ||||||
20 | independent monitor shall also describe any | ||||||
21 | recommendations the independent monitor has made to the | ||||||
22 | public utility regarding standards of ethics, and the | ||||||
23 | public utility's responses to those recommendations. The | ||||||
24 | report shall be made public and redactions shall be | ||||||
25 | limited to the maximum extent practicable. Only | ||||||
26 | information which is critical to system security shall be |
| |||||||
| |||||||
1 | redacted; information in which the public utility claims a | ||||||
2 | business interest shall not be deemed confidential or | ||||||
3 | redacted. | ||||||
4 | (e) Chief Compliance and Ethics Officers. Within 60 days | ||||||
5 | after the effective date of this amendatory Act of the 102nd | ||||||
6 | General Assembly, each public utility in the State shall | ||||||
7 | establish a new position of Chief Compliance and Ethics | ||||||
8 | Officer. The Chief Compliance and Ethics Officer shall be | ||||||
9 | employed by the public utility but shall serve as a liaison | ||||||
10 | between the public utility and the public utility's | ||||||
11 | independent monitor. The Chief Compliance and Ethics Officer | ||||||
12 | shall be responsible for ensuring the public utility complies | ||||||
13 | with the highest standards of ethical conduct, including, but | ||||||
14 | not limited to, complying with the standards described in this | ||||||
15 | Section, in the Illinois Administrative Code, and in any other | ||||||
16 | applicable authority. The Chief Compliance and Ethics Officer | ||||||
17 | shall oversee the creation and implementation of training for | ||||||
18 | every director, officer, employee, contractor, consultant, | ||||||
19 | lobbyist, vendor, agent, and business partner of the public | ||||||
20 | utility on applicable ethics guidelines. The Chief Compliance | ||||||
21 | and Ethics Officer shall oversee the creation and | ||||||
22 | implementation of a centralized reporting system for which | ||||||
23 | every director, officer, employee, contractor, consultant, | ||||||
24 | lobbyist, vendor, agent, and business partner shall have | ||||||
25 | training and submission access. The reporting system shall, at | ||||||
26 | minimum, be used to document every instance of communication |
| |||||||
| |||||||
1 | with a public official or their staff, and shall be designed to | ||||||
2 | ensure efficient review by the independent monitor for | ||||||
3 | potential violations of the standards in this Section and in | ||||||
4 | the Illinois Administrative Code. The Chief Compliance and | ||||||
5 | Ethics Officer shall oversee the ongoing monitoring of all | ||||||
6 | contractors, consultants or vendors who are contracted for the | ||||||
7 | purpose of carrying out lobbying or other duties that involve | ||||||
8 | interacting with public officials or their staff to ensure | ||||||
9 | their continued compliance with the applicable ethical | ||||||
10 | standards and to ensure they are providing value to the | ||||||
11 | business. | ||||||
12 | The Chief Compliance and Ethics Officer shall establish at | ||||||
13 | the public utility internal controls, codes, policies, | ||||||
14 | procedures, practices, and reporting to comply with the | ||||||
15 | standards in this Section and in the Illinois Administrative | ||||||
16 | Code, including, but not limited to: | ||||||
17 | (i) A public utility shall ensure it has a system of | ||||||
18 | financial and accounting procedures, internal controls, | ||||||
19 | and practices reasonably designed to ensure the | ||||||
20 | maintenance of fair and accurate books, records, and | ||||||
21 | accounts. This system should be designed to provide | ||||||
22 | reasonable assurances that transactions are recorded as | ||||||
23 | necessary to permit preparation of financial statements in | ||||||
24 | conformity with generally accepted accounting principles | ||||||
25 | or any other criteria applicable to such statements, and | ||||||
26 | to maintain accountability for assets. |
| |||||||
| |||||||
1 | (ii) A public utility shall conduct periodic risk | ||||||
2 | assessments and shall enforce, amend, and implement new | ||||||
3 | internal controls, policies, procedures and practices | ||||||
4 | based on those assessments. | ||||||
5 | (iii) A public utility shall implement mechanisms | ||||||
6 | designed to ensure that its compliance code, internal | ||||||
7 | controls, policies and procedures are effectively | ||||||
8 | communicated to all directors, officers, employees, | ||||||
9 | contractors, consultants, lobbyists, vendors, agents and | ||||||
10 | business partners. | ||||||
11 | (iv) A public utility shall ensure that its directors | ||||||
12 | and senior management provide strong, explicit, and | ||||||
13 | visible support and commitment to its corporate policy | ||||||
14 | against violations of U.S. and state law. | ||||||
15 | (v) A public utility shall implement mechanisms | ||||||
16 | designed to effectively enforce its compliance code, | ||||||
17 | controls, policies, practices and procedures, including | ||||||
18 | appropriately providing incentive for compliance and | ||||||
19 | disciplining violations. Such procedures, controls, | ||||||
20 | policies, and practices shall be applied consistently and | ||||||
21 | fairly, regardless of the position held by, or the | ||||||
22 | importance of, the director, officer, or employee. | ||||||
23 | (vi) A public utility shall implement procedures to | ||||||
24 | ensure that, where misconduct is discovered, reasonable | ||||||
25 | steps are taken to remedy the harm resulting from such | ||||||
26 | misconduct, including disciplinary action, reporting to |
| |||||||
| |||||||
1 | the Commission, and assessing and modifying as appropriate | ||||||
2 | the internal controls, code, policies, practices and | ||||||
3 | procedures necessary to ensure the compliance program is | ||||||
4 | effective. | ||||||
5 | The Chief Compliance and Ethics Officer shall be | ||||||
6 | responsible for reporting to the public utility's independent | ||||||
7 | monitor any conduct that is in violation of the standards set | ||||||
8 | forth in this Section or in violation of sections of the | ||||||
9 | Illinois Administrative Code implementing these rules and any | ||||||
10 | other authority governing the public utility's ethical | ||||||
11 | conduct, including disciplinary action taken in response. In | ||||||
12 | coordination with the public utility's independent monitor, | ||||||
13 | the Chief Compliance and Ethics Officer shall be responsible | ||||||
14 | for internal disciplinary actions at the public utility for | ||||||
15 | violations of such standards. | ||||||
16 | At least annually, the Chief Compliance and Ethics | ||||||
17 | Officer, in coordination with the independent monitor, shall | ||||||
18 | review the utility's internal controls, policies, practices | ||||||
19 | and procedures for their continued effectiveness to ensure the | ||||||
20 | highest standards of ethical conduct among the public | ||||||
21 | utility's directors, officers, employees, contractors, | ||||||
22 | consultants, lobbyists, vendors, agents and business partners. | ||||||
23 | (f) A public utility shall, within 90 days after this | ||||||
24 | amendatory act of the 102nd General Assembly, develop and | ||||||
25 | implement internal controls, policies, and procedures to | ||||||
26 | achieve the following objectives: |
| |||||||
| |||||||
1 | (i) No public utility may allow a contractor, | ||||||
2 | consultant, or vendor who is contracted for the purpose of | ||||||
3 | carrying out lobbying pursuant to the Lobbyist | ||||||
4 | Registration Act or other duties that involve interacting | ||||||
5 | with elected officials or their staff to subcontract any | ||||||
6 | portion of that work. | ||||||
7 | (ii) Electric and natural gas public utilities shall | ||||||
8 | require contractors, consultants, or vendors who are | ||||||
9 | contracted for the purpose of carrying out lobbying | ||||||
10 | pursuant to the Lobbyist Registration Act or other duties | ||||||
11 | that involve interacting with public officials or their | ||||||
12 | staff to provide detailed invoices and reports describing | ||||||
13 | activities taken and amounts billed for such activities, | ||||||
14 | including: 1) time spent; 2) amount charged for activity, | ||||||
15 | if any; 3) all person(s) involved; 4) summary description | ||||||
16 | of discussions or exchanges, oral, written, electronic, or | ||||||
17 | otherwise; and 5) anything of value requested or | ||||||
18 | solicited, or provided to public officials or their staff, | ||||||
19 | including hiring requests. Such invoices and reports shall | ||||||
20 | be entered into a database accessible by, at minimum, the | ||||||
21 | Chief Compliance and Ethics Officer and the public | ||||||
22 | utility's independent monitor. No contracts shall be paid | ||||||
23 | without a detailed invoice. Where anything of value is | ||||||
24 | requested, received, given, or exchanged with a public | ||||||
25 | official or their staff, such invoice or report must be | ||||||
26 | explicitly reviewed by the independent monitor and the |
| |||||||
| |||||||
1 | Chief Compliance and Ethics Officer within 45 days after | ||||||
2 | the activity. No invoice related to the request, receipt, | ||||||
3 | gift, or exchange of something of value shall be paid | ||||||
4 | until that review is complete and the activity is | ||||||
5 | determined to be in compliance with ethical standards. | ||||||
6 | (iii) The hiring of contractors, consultants or | ||||||
7 | vendors who are contracted for the purpose of carrying out | ||||||
8 | lobbying pursuant to the Lobbyist Registration Act or | ||||||
9 | other duties that involve interacting with public | ||||||
10 | officials or their staff shall be reviewed and approved by | ||||||
11 | the Chief Compliance and Ethics Officer. The Chief | ||||||
12 | Compliance and Ethics Officer shall not approve any | ||||||
13 | contract or engagement until it has found there are no | ||||||
14 | conflicts of interest related to public officials. The | ||||||
15 | Chief Compliance and Ethics Officer shall oversee annual | ||||||
16 | or more frequent audits of every contractor, consultant, | ||||||
17 | or vendor who is contracted for the purpose of carrying | ||||||
18 | out lobbying or other duties that involve interacting with | ||||||
19 | public officials or their staff for continued review of | ||||||
20 | potential conflicts of interest related to elected | ||||||
21 | officials. The Chief Compliance and Ethics Officer shall | ||||||
22 | ensure that every contractor, consultant and vendor is | ||||||
23 | providing value to the business and providing detailed | ||||||
24 | invoices describing work done pursuant to paragraph (ii) | ||||||
25 | subsection (f). | ||||||
26 | (iv) All requests for anything of value made to a |
| |||||||
| |||||||
1 | public utility or its directors, officers, employees, | ||||||
2 | contractors, consultants, lobbyists, vendors, agents and | ||||||
3 | business partners by a public official or their staff | ||||||
4 | shall be recorded in a database accessible by the | ||||||
5 | independent monitor and the Company's Chief Ethics and | ||||||
6 | Compliance Officer within 2 business days after the | ||||||
7 | request. No action may be taken in response to such a | ||||||
8 | request until the request has been reviewed and approved | ||||||
9 | by the independent monitor and the Chief Ethics and | ||||||
10 | Compliance Officer. | ||||||
11 | (g) The Commission shall, within 60 days after the | ||||||
12 | effective date of this Amendatory Act of the 102nd General | ||||||
13 | Assembly, initiate an emergency rulemaking to add additional | ||||||
14 | requirements to Title 83 of the Illinois Administrative Code | ||||||
15 | to accomplish the following objectives: | ||||||
16 | (i) No director, officer, employee, contractor, | ||||||
17 | consultant, lobbyist, vendor, agent, representative, or | ||||||
18 | business partner of a public utility may meet privately | ||||||
19 | with any Commissioner or employee of the Illinois Commerce | ||||||
20 | Commission regarding any topic or issue anticipated to be | ||||||
21 | the subject of a contested hearing within the next 365 | ||||||
22 | days. Any such anticipated meetings shall be open to the | ||||||
23 | public and communicated to consumer, community, and | ||||||
24 | environmental advocates. | ||||||
25 | (ii) Communication between any director, officer, | ||||||
26 | employee, contractor, consultant, lobbyist, vendor, agent, |
| |||||||
| |||||||
1 | representative, or business partner of a public utility | ||||||
2 | and any Commissioner or employee of the Illinois Commerce | ||||||
3 | Commission on a topic or issue anticipated to be the | ||||||
4 | subject of a contested hearing within the next 365 days | ||||||
5 | shall be reported in a publicly available central | ||||||
6 | database. | ||||||
7 | (h) All reports from the Public Utilities Ethics Inspector | ||||||
8 | to the Commission shall be made public and redactions shall be | ||||||
9 | limited to the maximum extent practicable. Only information | ||||||
10 | which is critical to system security shall be redacted; | ||||||
11 | information in which the public utility claims a business | ||||||
12 | interest shall not be deemed confidential or redacted. The | ||||||
13 | Public Utilities Ethics Inspector shall establish a procedure | ||||||
14 | for making unredacted reports available to interested | ||||||
15 | stakeholders who establish good cause that receipt of an | ||||||
16 | unredacted report is in the public interest. | ||||||
17 | Adoption and implementation of these emergency rules is | ||||||
18 | deemed to be necessary for the public interest, safety, and | ||||||
19 | welfare. | ||||||
20 | (i) Noncompliance. In the event the Public Utility Ethics | ||||||
21 | Inspector finds a public utility does not comply with any | ||||||
22 | portion of this Section, or with the rules effectuated by this | ||||||
23 | Section, the Public Utility Ethics Inspector shall issue a | ||||||
24 | Report to the Commission detailing the public utility's | ||||||
25 | deficiencies. The Commission shall have authority to open an | ||||||
26 | investigation and shall order remediation and penalties as |
| |||||||
| |||||||
1 | appropriate. | ||||||
2 | (j) Each year, each public utility in the State shall | ||||||
3 | remit amounts necessary for the State to pay the wages, | ||||||
4 | overhead, travel expenses, and other costs of that public | ||||||
5 | utility's independent monitor as well as that public utility's | ||||||
6 | proportional share, by number of customers, of the Public | ||||||
7 | Utility Ethics Inspector's wages, overhead, travel expenses, | ||||||
8 | and other costs. These expenses shall not be recoverable in | ||||||
9 | rates. | ||||||
10 | (k) A public utility's costs of complying with these | ||||||
11 | requirements, including wages and other operating expenses, | ||||||
12 | shall not be recoverable in rates. | ||||||
13 | (l) Where a public utility is the subject of a federal or | ||||||
14 | State criminal investigation, or where the Commission | ||||||
15 | initiates an investigation against a public utility for any | ||||||
16 | violation of the standards set forth in this Section or | ||||||
17 | Illinois Administrative Rules implementing this Section, the | ||||||
18 | utility's costs related to such investigation shall not be | ||||||
19 | recoverable in rates. | ||||||
20 | (220 ILCS 5/4-605 new) | ||||||
21 | Sec. 4-605. Restitution for misconduct. | ||||||
22 | (a) It is the policy of this State that public utility | ||||||
23 | ethical and criminal misconduct shall not be tolerated. The | ||||||
24 | General Assembly finds it necessary to collect restitution, to | ||||||
25 | be distributed as described in subsection (d), from a public |
| |||||||
| |||||||
1 | utility who has been found guilty of violations of criminal | ||||||
2 | law or who has entered into a Deferred Prosecution Agreement | ||||||
3 | that details violations of criminal law. | ||||||
4 | (b) In light of such violations, the Illinois Commerce | ||||||
5 | Commission shall, within 150 days after the effective date of | ||||||
6 | this amendatory Act of the 102nd General Assembly, initiate an | ||||||
7 | investigation into amounts necessary to be refunded to | ||||||
8 | customers to restore funds to the State and to ratepayers that | ||||||
9 | were collected by the electric public utility Commonwealth | ||||||
10 | Edison Company as a result of ethical misconduct. The | ||||||
11 | investigation shall conclude no later than 270 days following | ||||||
12 | initiation, and shall be conducted as a contested proceeding. | ||||||
13 | The investigation shall calculate benefits received by the | ||||||
14 | public utility that were instituted as a result of illegal and | ||||||
15 | unethical conduct, as set forth in the Deferred Prosecution | ||||||
16 | Agreement of July 16, 2020 between the United States Attorney | ||||||
17 | for the Northern District of Illinois and Commonwealth Edison | ||||||
18 | Company, for passage of the Energy Infrastructure | ||||||
19 | Modernization Act of 2011. The amount shall be no less than the | ||||||
20 | total return on equity recovered for investments in | ||||||
21 | infrastructure made pursuant to paragraph (1) of subsection | ||||||
22 | (b) of Section 16-108.5 of this Act. | ||||||
23 | (c) Pursuant to subsection (d), the investigation shall | ||||||
24 | calculate a schedule for remittance to state funds and to | ||||||
25 | ratepayers, over a period of no more than 4 years, to be paid | ||||||
26 | by the public utility from profits, returns, or shareholder |
| |||||||
| |||||||
1 | dollars. No costs related to the investigation, restitution, | ||||||
2 | or refunds may be recoverable through rates. | ||||||
3 | (d) Funds collected pursuant to this Section shall be | ||||||
4 | repaid by the public utility
in the following manner: | ||||||
5 | (1) 25% shall be contributed to expand the Percentage | ||||||
6 | of Income Payment Program; | ||||||
7 | (2) 25%, or no less than $20 million annually, shall | ||||||
8 | be contributed to the Energy Community Reinvestment Fund | ||||||
9 | to support the Jobs and Environmental Justice Grant | ||||||
10 | Program, as described in the Expanding Clean Energy | ||||||
11 | Entrepreneurship Program of the Clean Jobs, Workforce and | ||||||
12 | Contractor Equity Act; and | ||||||
13 | (3) the remaining percentage of funds collected shall | ||||||
14 | be provided as a per-kilowatt-hour credit to the public | ||||||
15 | utility's ratepayers. | ||||||
16 | (220 ILCS 5/8-103B) | ||||||
17 | Sec. 8-103B. Energy efficiency and demand-response | ||||||
18 | measures. | ||||||
19 | (a) It is the policy of the State that electric utilities | ||||||
20 | are required to use cost-effective energy efficiency and | ||||||
21 | demand-response measures to reduce delivery load. Requiring | ||||||
22 | investment in cost-effective energy efficiency and | ||||||
23 | demand-response measures will reduce direct and indirect costs | ||||||
24 | to consumers by decreasing environmental impacts and by | ||||||
25 | avoiding or delaying the need for new generation, |
| |||||||
| |||||||
1 | transmission, and distribution infrastructure. It serves the | ||||||
2 | public interest to allow electric utilities to recover costs | ||||||
3 | for reasonably and prudently incurred expenditures for energy | ||||||
4 | efficiency and demand-response measures. As used in this | ||||||
5 | Section, "cost-effective" means that the measures satisfy the | ||||||
6 | total resource cost test. The low-income measures described in | ||||||
7 | subsection (c) of this Section shall not be required to meet | ||||||
8 | the total resource cost test. For purposes of this Section, | ||||||
9 | the terms "energy-efficiency", "demand-response", "electric | ||||||
10 | utility", and "total resource cost test" have the meanings set | ||||||
11 | forth in the Illinois Power Agency Act. "Black, indigenous, | ||||||
12 | and people of color" and "BIPOC" means people who are members | ||||||
13 | of the groups described in subparagraphs (a) through (e) of | ||||||
14 | paragraph (A) of subsection (1) of Section 2 of the Business | ||||||
15 | Enterprise for Minorities, Women, and Persons with | ||||||
16 | Disabilities Act. "Expanding Clean Energy Entrepreneurship and | ||||||
17 | Contractor Incubator Network Program," "Clean Energy Black, | ||||||
18 | Indigenous, and People of Color Primes Contractor | ||||||
19 | Accelerator," "Returning Resident Clean Energy Training | ||||||
20 | Program," and "Clean Energy Workforce Training Hubs Program" | ||||||
21 | are as set forth in the Clean Jobs, Workforce and Contractor | ||||||
22 | Equity Act. | ||||||
23 | (a-5) This Section applies to electric utilities serving | ||||||
24 | more than 500,000 retail customers in the State for those | ||||||
25 | multi-year plans commencing after December 31, 2017. | ||||||
26 | (b) For purposes of this Section, electric utilities |
| |||||||
| |||||||
1 | subject to this Section that serve more than 3,000,000 retail | ||||||
2 | customers in the State shall be deemed to have achieved a | ||||||
3 | cumulative persisting annual savings of 6.6% from energy | ||||||
4 | efficiency measures and programs implemented during the period | ||||||
5 | beginning January 1, 2012 and ending December 31, 2017, which | ||||||
6 | percent is based on the deemed average weather normalized | ||||||
7 | sales of electric power and energy during calendar years 2014, | ||||||
8 | 2015, and 2016 of 88,000,000 MWhs. For the purposes of this | ||||||
9 | subsection (b) and subsection (b-5), the 88,000,000 MWhs of | ||||||
10 | deemed electric power and energy sales shall be reduced by the | ||||||
11 | number of MWhs equal to the sum of the annual consumption of | ||||||
12 | customers that are exempt from subsections (a) through (j) of | ||||||
13 | this Section under subsection (l) of this Section, as averaged | ||||||
14 | across the calendar years 2014, 2015, and 2016. After 2017, | ||||||
15 | the deemed value of cumulative persisting annual savings from | ||||||
16 | energy efficiency measures and programs implemented during the | ||||||
17 | period beginning January 1, 2012 and ending December 31, 2017, | ||||||
18 | shall be reduced each year, as follows, and the applicable | ||||||
19 | value shall be applied to and count toward the utility's | ||||||
20 | achievement of the cumulative persisting annual savings goals | ||||||
21 | set forth in subsection (b-5): | ||||||
22 | (1) 5.8% deemed cumulative persisting annual savings | ||||||
23 | for the year ending December 31, 2018; | ||||||
24 | (2) 5.2% deemed cumulative persisting annual savings | ||||||
25 | for the year ending December 31, 2019; | ||||||
26 | (3) 4.5% deemed cumulative persisting annual savings |
| |||||||
| |||||||
1 | for the year ending December 31, 2020; | ||||||
2 | (4) 4.0% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2021; | ||||||
4 | (5) 3.5% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2022; | ||||||
6 | (6) 3.1% deemed cumulative persisting annual savings | ||||||
7 | for the year ending December 31, 2023; | ||||||
8 | (7) 2.8% deemed cumulative persisting annual savings | ||||||
9 | for the year ending December 31, 2024; | ||||||
10 | (8) 2.5% deemed cumulative persisting annual savings | ||||||
11 | for the year ending December 31, 2025; | ||||||
12 | (9) 2.3% deemed cumulative persisting annual savings | ||||||
13 | for the year ending December 31, 2026; | ||||||
14 | (10) 2.1% deemed cumulative persisting annual savings | ||||||
15 | for the year ending December 31, 2027; | ||||||
16 | (11) 1.8% deemed cumulative persisting annual savings | ||||||
17 | for the year ending December 31, 2028; | ||||||
18 | (12) 1.7% deemed cumulative persisting annual savings | ||||||
19 | for the year ending December 31, 2029; and | ||||||
20 | (13) 1.5% deemed cumulative persisting annual savings | ||||||
21 | for the year ending December 31, 2030 ; . | ||||||
22 | (14) 1.3% deemed cumulative persisting annual savings | ||||||
23 | for the year ending December 31, 2031; | ||||||
24 | (15) 1.1% deemed cumulative persisting annual savings | ||||||
25 | for the year ending December 31, 2032; | ||||||
26 | (16) 0.9% deemed cumulative persisting annual savings |
| |||||||
| |||||||
1 | for the year ending December 31, 2033; | ||||||
2 | (17) 0.7% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2034; | ||||||
4 | (18) 0.5% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2035; | ||||||
6 | (19) 0.4% deemed cumulative persisting annual savings | ||||||
7 | for the year ending December 31, 2036; | ||||||
8 | (20) 0.3% deemed cumulative persisting annual savings | ||||||
9 | for the year ending December 31, 2037; | ||||||
10 | (21) 0.2% deemed cumulative persisting annual savings | ||||||
11 | for the year ending December 31, 2038; | ||||||
12 | (22) 0.1% deemed cumulative persisting annual savings | ||||||
13 | for the year ending December 31, 2039; and | ||||||
14 | (23) 0.0% deemed cumulative persisting annual savings | ||||||
15 | for the year ending December 31, 2040 and all subsequent | ||||||
16 | years. | ||||||
17 | For purposes of this Section, "cumulative persisting | ||||||
18 | annual savings" means the total electric energy savings in a | ||||||
19 | given year from measures installed in that year or in previous | ||||||
20 | years, but no earlier than January 1, 2012, that are still | ||||||
21 | operational and providing savings in that year because the | ||||||
22 | measures have not yet reached the end of their useful lives. | ||||||
23 | (b-5) Beginning in 2018, electric utilities subject to | ||||||
24 | this Section that serve more than 3,000,000 retail customers | ||||||
25 | in the State shall achieve the following cumulative persisting | ||||||
26 | annual savings goals, as modified by subsection (f) of this |
| |||||||
| |||||||
1 | Section and as compared to the deemed baseline of 88,000,000 | ||||||
2 | MWhs of electric power and energy sales set forth in | ||||||
3 | subsection (b), as reduced by the number of MWhs equal to the | ||||||
4 | sum of the annual consumption of customers that are exempt | ||||||
5 | from subsections (a) through (j) of this Section under | ||||||
6 | subsection (l) of this Section as averaged across the calendar | ||||||
7 | years 2014, 2015, and 2016, through the implementation of | ||||||
8 | energy efficiency measures during the applicable year and in | ||||||
9 | prior years, but no earlier than January 1, 2012: | ||||||
10 | (1) 7.8% cumulative persisting annual savings for the | ||||||
11 | year ending December 31, 2018; | ||||||
12 | (2) 9.1% cumulative persisting annual savings for the | ||||||
13 | year ending December 31, 2019; | ||||||
14 | (3) 10.4% cumulative persisting annual savings for the | ||||||
15 | year ending December 31, 2020; | ||||||
16 | (4) 11.8% cumulative persisting annual savings for the | ||||||
17 | year ending December 31, 2021; | ||||||
18 | (5) 13.1% cumulative persisting annual savings for the | ||||||
19 | year ending December 31, 2022; | ||||||
20 | (6) 14.4% cumulative persisting annual savings for the | ||||||
21 | year ending December 31, 2023; | ||||||
22 | (7) 15.7% cumulative persisting annual savings for the | ||||||
23 | year ending December 31, 2024; | ||||||
24 | (8) 17% cumulative persisting annual savings for the | ||||||
25 | year ending December 31, 2025; | ||||||
26 | (9) 17.9% cumulative persisting annual savings for the |
| |||||||
| |||||||
1 | year ending December 31, 2026; | ||||||
2 | (10) 18.8% cumulative persisting annual savings for | ||||||
3 | the year ending December 31, 2027; | ||||||
4 | (11) 19.7% cumulative persisting annual savings for | ||||||
5 | the year ending December 31, 2028; | ||||||
6 | (12) 20.6% cumulative persisting annual savings for | ||||||
7 | the year ending December 31, 2029; and | ||||||
8 | (13) 21.5% cumulative persisting annual savings for | ||||||
9 | the year ending December 31, 2030. | ||||||
10 | No later than December 31, 2021, the Illinois Commerce | ||||||
11 | Commission shall establish additional cumulative persisting | ||||||
12 | annual savings goals for the years 2031 through 2035. No later | ||||||
13 | than December 31, 2024, the Illinois Commerce Commission shall | ||||||
14 | establish additional cumulative persisting annual savings | ||||||
15 | goals for the years 2036 through 2040. The Commission shall | ||||||
16 | also establish additional cumulative persisting annual savings | ||||||
17 | goals every 5 years thereafter to ensure utilities always have | ||||||
18 | goals that extend at least 11 years into the future. The | ||||||
19 | cumulative persisting annual savings goals beyond the year | ||||||
20 | 2030 shall increase by 0.9 percentage points per year, absent | ||||||
21 | a Commission decision to initiate a proceeding to consider | ||||||
22 | establishing goals that increase by more or less than that | ||||||
23 | amount. Such a proceeding must be conducted in accordance with | ||||||
24 | the procedures described in subsection (f) of this Section. If | ||||||
25 | such a proceeding is initiated, the cumulative persisting | ||||||
26 | annual savings goals established by the Commission through |
| |||||||
| |||||||
1 | that proceeding shall reflect the Commission's best estimate | ||||||
2 | of the maximum amount of additional savings that are forecast | ||||||
3 | to be cost-effectively achievable unless such best estimates | ||||||
4 | would result in goals that represent less than 0.5 percentage | ||||||
5 | point annual increases in total cumulative persisting annual | ||||||
6 | savings. The Commission may only establish goals that | ||||||
7 | represent less than 0.5 percentage point annual increases in | ||||||
8 | cumulative persisting annual savings if it can demonstrate, | ||||||
9 | based on clear and convincing evidence and through independent | ||||||
10 | analysis, that 0.5 percentage point increases are not | ||||||
11 | cost-effectively achievable. The Commission shall inform its | ||||||
12 | decision based on an energy efficiency potential study that | ||||||
13 | conforms to the requirements of subsection (f-5) of this | ||||||
14 | Section. | ||||||
15 | (b-10) For purposes of this Section, electric utilities | ||||||
16 | subject to this Section that serve less than 3,000,000 retail | ||||||
17 | customers but more than 500,000 retail customers in the State | ||||||
18 | shall be deemed to have achieved a cumulative persisting | ||||||
19 | annual savings of 6.6% from energy efficiency measures and | ||||||
20 | programs implemented during the period beginning January 1, | ||||||
21 | 2012 and ending December 31, 2017, which is based on the deemed | ||||||
22 | average weather normalized sales of electric power and energy | ||||||
23 | during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. | ||||||
24 | For the purposes of this subsection (b-10) and subsection | ||||||
25 | (b-15), the 36,900,000 MWhs of deemed electric power and | ||||||
26 | energy sales shall be reduced by the number of MWhs equal to |
| |||||||
| |||||||
1 | the sum of the annual consumption of customers that are exempt | ||||||
2 | from subsections (a) through (j) of this Section under | ||||||
3 | subsection (l) of this Section, as averaged across the | ||||||
4 | calendar years 2014, 2015, and 2016. After 2017, the deemed | ||||||
5 | value of cumulative persisting annual savings from energy | ||||||
6 | efficiency measures and programs implemented during the period | ||||||
7 | beginning January 1, 2012 and ending December 31, 2017, shall | ||||||
8 | be reduced each year, as follows, and the applicable value | ||||||
9 | shall be applied to and count toward the utility's achievement | ||||||
10 | of the cumulative persisting annual savings goals set forth in | ||||||
11 | subsection (b-15): | ||||||
12 | (1) 5.8% deemed cumulative persisting annual savings | ||||||
13 | for the year ending December 31, 2018; | ||||||
14 | (2) 5.2% deemed cumulative persisting annual savings | ||||||
15 | for the year ending December 31, 2019; | ||||||
16 | (3) 4.5% deemed cumulative persisting annual savings | ||||||
17 | for the year ending December 31, 2020; | ||||||
18 | (4) 4.0% deemed cumulative persisting annual savings | ||||||
19 | for the year ending December 31, 2021; | ||||||
20 | (5) 3.5% deemed cumulative persisting annual savings | ||||||
21 | for the year ending December 31, 2022; | ||||||
22 | (6) 3.1% deemed cumulative persisting annual savings | ||||||
23 | for the year ending December 31, 2023; | ||||||
24 | (7) 2.8% deemed cumulative persisting annual savings | ||||||
25 | for the year ending December 31, 2024; | ||||||
26 | (8) 2.5% deemed cumulative persisting annual savings |
| |||||||
| |||||||
1 | for the year ending December 31, 2025; | ||||||
2 | (9) 2.3% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2026; | ||||||
4 | (10) 2.1% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2027; | ||||||
6 | (11) 1.8% deemed cumulative persisting annual savings | ||||||
7 | for the year ending December 31, 2028; | ||||||
8 | (12) 1.7% deemed cumulative persisting annual savings | ||||||
9 | for the year ending December 31, 2029; and | ||||||
10 | (13) 1.5% deemed cumulative persisting annual savings | ||||||
11 | for the year ending December 31, 2030 ; . | ||||||
12 | (14) 1.3% deemed cumulative persisting annual savings | ||||||
13 | for the year ending December 31, 2031; | ||||||
14 | (15) 1.1% deemed cumulative persisting annual savings | ||||||
15 | for the year ending December 31, 2032; | ||||||
16 | (16) 0.9% deemed cumulative persisting annual savings | ||||||
17 | for the year ending December 31, 2033; | ||||||
18 | (17) 0.7% deemed cumulative persisting annual savings | ||||||
19 | for the year ending December 31, 2034; | ||||||
20 | (18) 0.5% deemed cumulative persisting annual savings | ||||||
21 | for the year ending December 31, 2035; | ||||||
22 | (19) 0.4% deemed cumulative persisting annual savings | ||||||
23 | for the year ending December 31, 2036; | ||||||
24 | (20) 0.3% deemed cumulative persisting annual savings | ||||||
25 | for the year ending December 31, 2037; | ||||||
26 | (21) 0.2% deemed cumulative persisting annual savings |
| |||||||
| |||||||
1 | for the year ending December 31, 2038; | ||||||
2 | (22) 0.1% deemed cumulative persisting annual savings | ||||||
3 | for the year ending December 31, 2039; and | ||||||
4 | (23) 0.0% deemed cumulative persisting annual savings | ||||||
5 | for the year ending December 31, 2040 and all subsequent | ||||||
6 | years. | ||||||
7 | (b-15) Beginning in 2018, electric utilities subject to | ||||||
8 | this Section that serve less than 3,000,000 retail customers | ||||||
9 | but more than 500,000 retail customers in the State shall | ||||||
10 | achieve the following cumulative persisting annual savings | ||||||
11 | goals , as modified by subsection (b-20) and subsection (f) of | ||||||
12 | this Section and as compared to the deemed baseline as reduced | ||||||
13 | by the number of MWhs equal to the sum of the annual | ||||||
14 | consumption of customers that are exempt from subsections (a) | ||||||
15 | through (j) of this Section under subsection (l) of this | ||||||
16 | Section as averaged across the calendar years 2014, 2015, and | ||||||
17 | 2016, through the implementation of energy efficiency measures | ||||||
18 | during the applicable year and in prior years, but no earlier | ||||||
19 | than January 1, 2012: | ||||||
20 | (1) 7.4% cumulative persisting annual savings for the | ||||||
21 | year ending December 31, 2018; | ||||||
22 | (2) 8.2% cumulative persisting annual savings for the | ||||||
23 | year ending December 31, 2019; | ||||||
24 | (3) 9.0% cumulative persisting annual savings for the | ||||||
25 | year ending December 31, 2020; | ||||||
26 | (4) 9.8% cumulative persisting annual savings for the |
| |||||||
| |||||||
1 | year ending December 31, 2021; | ||||||
2 | (5) 10.6% cumulative persisting annual savings for the | ||||||
3 | year ending December 31, 2022; | ||||||
4 | (6) 11.4% cumulative persisting annual savings for the | ||||||
5 | year ending December 31, 2023; | ||||||
6 | (7) 12.2% cumulative persisting annual savings for the | ||||||
7 | year ending December 31, 2024; | ||||||
8 | (8) 13% cumulative persisting annual savings for the | ||||||
9 | year ending December 31, 2025; | ||||||
10 | (9) 13.6% cumulative persisting annual savings for the | ||||||
11 | year ending December 31, 2026; | ||||||
12 | (10) 14.2% cumulative persisting annual savings for | ||||||
13 | the year ending December 31, 2027; | ||||||
14 | (11) 14.8% cumulative persisting annual savings for | ||||||
15 | the year ending December 31, 2028; | ||||||
16 | (12) 15.4% cumulative persisting annual savings for | ||||||
17 | the year ending December 31, 2029; and | ||||||
18 | (13) 16% cumulative persisting annual savings for the | ||||||
19 | year ending December 31, 2030. | ||||||
20 | No later than December 31, 2021, the Illinois Commerce | ||||||
21 | Commission shall establish additional cumulative persisting | ||||||
22 | annual savings goals for the years 2031 through 2035. No later | ||||||
23 | than December 31, 2024, the Illinois Commerce Commission shall | ||||||
24 | establish additional cumulative persisting annual savings | ||||||
25 | goals for the years 2036 through 2040. The Commission shall | ||||||
26 | also establish additional cumulative persisting annual savings |
| |||||||
| |||||||
1 | goals every 5 years thereafter to ensure utilities always have | ||||||
2 | goals that extend at least 11 years into the future. The | ||||||
3 | cumulative persisting annual savings goals beyond the year | ||||||
4 | 2030 shall increase by 0.6 percentage points per year, absent | ||||||
5 | a Commission decision to initiate a proceeding to consider | ||||||
6 | establishing goals that increase by more or less than that | ||||||
7 | amount. Such a proceeding must be conducted in accordance with | ||||||
8 | the procedures described in subsection (f) of this Section. If | ||||||
9 | such a proceeding is initiated, the cumulative persisting | ||||||
10 | annual savings goals established by the Commission through | ||||||
11 | that proceeding shall reflect the Commission's best estimate | ||||||
12 | of the maximum amount of additional savings that are forecast | ||||||
13 | to be cost-effectively achievable unless such best estimates | ||||||
14 | would result in goals that represent less than 0.4 percentage | ||||||
15 | point annual increases in total cumulative persisting annual | ||||||
16 | savings. The Commission may only establish goals that | ||||||
17 | represent less than 0.4 percentage point annual increases in | ||||||
18 | cumulative persisting annual savings if it can demonstrate, | ||||||
19 | based on clear and convincing evidence and through independent | ||||||
20 | analysis, that 0.4 percentage point increases are not | ||||||
21 | cost-effectively achievable. The Commission shall inform its | ||||||
22 | decision based on an energy efficiency potential study that | ||||||
23 | conforms to the requirements of subsection (f-5) of this | ||||||
24 | Section. | ||||||
25 | The difference between the cumulative persisting annual | ||||||
26 | savings goal for the applicable calendar year and the |
| |||||||
| |||||||
1 | cumulative persisting annual savings goal for the immediately | ||||||
2 | preceding calendar year is 0.8% for the period of January 1, | ||||||
3 | 2018 through December 31, 2025 and 0.6% for the period of | ||||||
4 | January 1, 2026 through December 31, 2030. | ||||||
5 | (b-20) Each electric utility subject to this Section may | ||||||
6 | include cost-effective voltage optimization measures in its | ||||||
7 | plans submitted under subsections (f) and (g) of this Section, | ||||||
8 | and the costs incurred by a utility to implement the measures | ||||||
9 | under a Commission-approved plan shall be recovered under the | ||||||
10 | provisions of Article IX or Section 16-108.5 of this Act. For | ||||||
11 | purposes of this Section, the measure life of voltage | ||||||
12 | optimization measures shall be 15 years. The measure life | ||||||
13 | period is independent of the depreciation rate of the voltage | ||||||
14 | optimization assets deployed. Utilities may claim savings from | ||||||
15 | voltage optimization on circuits for more than 15 years if | ||||||
16 | they can demonstrate that they have made additional | ||||||
17 | investments necessary to enable voltage optimization savings | ||||||
18 | to continue beyond 15 years. Such demonstrations must be | ||||||
19 | subject to the review of independent evaluation. | ||||||
20 | Within 270 days after June 1, 2017 (the effective date of | ||||||
21 | Public Act 99-906), an electric utility that serves less than | ||||||
22 | 3,000,000 retail customers but more than 500,000 retail | ||||||
23 | customers in the State shall file a plan with the Commission | ||||||
24 | that identifies the cost-effective voltage optimization | ||||||
25 | investment the electric utility plans to undertake through | ||||||
26 | December 31, 2024. The Commission, after notice and hearing, |
| |||||||
| |||||||
1 | shall approve or approve with modification the plan within 120 | ||||||
2 | days after the plan's filing and, in the order approving or | ||||||
3 | approving with modification the plan, the Commission shall | ||||||
4 | adjust the applicable cumulative persisting annual savings | ||||||
5 | goals set forth in subsection (b-15) to reflect any amount of | ||||||
6 | cost-effective energy savings approved by the Commission that | ||||||
7 | is greater than or less than the following cumulative | ||||||
8 | persisting annual savings values attributable to voltage | ||||||
9 | optimization for the applicable year: | ||||||
10 | (1) 0.0% of cumulative persisting annual savings for | ||||||
11 | the year ending December 31, 2018; | ||||||
12 | (2) 0.17% of cumulative persisting annual savings for | ||||||
13 | the year ending December 31, 2019; | ||||||
14 | (3) 0.17% of cumulative persisting annual savings for | ||||||
15 | the year ending December 31, 2020; | ||||||
16 | (4) 0.33% of cumulative persisting annual savings for | ||||||
17 | the year ending December 31, 2021; | ||||||
18 | (5) 0.5% of cumulative persisting annual savings for | ||||||
19 | the year ending December 31, 2022; | ||||||
20 | (6) 0.67% of cumulative persisting annual savings for | ||||||
21 | the year ending December 31, 2023; | ||||||
22 | (7) 0.83% of cumulative persisting annual savings for | ||||||
23 | the year ending December 31, 2024; and | ||||||
24 | (8) 1.0% of cumulative persisting annual savings for | ||||||
25 | the year ending December 31, 2025 and all subsequent | ||||||
26 | years . |
| |||||||
| |||||||
1 | (b-25) In the event an electric utility jointly offers an | ||||||
2 | energy efficiency measure or program with a gas utility under | ||||||
3 | plans approved under this Section and Section 8-104 of this | ||||||
4 | Act, the electric utility may continue offering the program, | ||||||
5 | including the gas energy efficiency measures, in the event the | ||||||
6 | gas utility discontinues funding the program. In that event, | ||||||
7 | the energy savings value associated with such other fuels | ||||||
8 | shall be converted to electric energy savings on an equivalent | ||||||
9 | Btu basis for the premises. However, the electric utility | ||||||
10 | shall prioritize programs for low-income residential customers | ||||||
11 | to the extent practicable. An electric utility may recover the | ||||||
12 | costs of offering the gas energy efficiency measures under | ||||||
13 | this subsection (b-25). | ||||||
14 | For those energy efficiency measures or programs that save | ||||||
15 | both electricity and other fuels but are not jointly offered | ||||||
16 | with a gas utility under plans approved under this Section and | ||||||
17 | Section 8-104 or not offered with an affiliated gas utility | ||||||
18 | under paragraph (6) of subsection (f) of Section 8-104 of this | ||||||
19 | Act, the electric utility may count savings of fuels other | ||||||
20 | than electricity toward the achievement of its annual savings | ||||||
21 | goal, and the energy savings value associated with such other | ||||||
22 | fuels shall be converted to electric energy savings on an | ||||||
23 | equivalent Btu basis at the premises. | ||||||
24 | In no event shall more than 10% of each year's applicable | ||||||
25 | annual total savings requirement incremental goal as defined | ||||||
26 | in paragraph (7.5) (7) of subsection (g) of this Section be met |
| |||||||
| |||||||
1 | through savings of fuels other than electricity. | ||||||
2 | (b-27) Beginning in 2022, an electric utility may offer | ||||||
3 | and promote measures that electrify space heating, water | ||||||
4 | heating, cooling, drying, cooking, industrial processes, and | ||||||
5 | other building and industrial end uses that would otherwise be | ||||||
6 | served by combustion of fossil fuel at the premises, provided | ||||||
7 | that the electrification measures reduce total energy | ||||||
8 | consumption at the premises. The electric utility may count | ||||||
9 | the reduction in energy consumption at the premises toward | ||||||
10 | achievement of its annual savings goals. The reduction in | ||||||
11 | energy consumption at the premises shall be calculated as the | ||||||
12 | difference between: (A) the reduction in Btu consumption of | ||||||
13 | fossil fuels as a result of electrification, converted to | ||||||
14 | kilowatt-hour equivalents by dividing by 3,412 Btu's per | ||||||
15 | kilowatt hour; and (B) the increase in kilowatt hours of | ||||||
16 | electricity consumption resulting from the displacement of | ||||||
17 | fossil fuel consumption as a result of electrification. An | ||||||
18 | electric utility may recover the costs of offering and | ||||||
19 | promoting electrification measures under this subsection | ||||||
20 | (b-27). | ||||||
21 | In no event shall electrification savings counted toward | ||||||
22 | each year's applicable annual total savings requirement, as | ||||||
23 | defined in paragraph (7.5) of subsection (g) of this Section, | ||||||
24 | be greater than: | ||||||
25 | (1) 5% per year for each year from 2022 through 2025; | ||||||
26 | (2) 10% per year for each year from 2026 through 2029; |
| |||||||
| |||||||
1 | and | ||||||
2 | (3) 15% per year for 2030 and all subsequent years. | ||||||
3 | In addition, a minimum of 25% of all electrification savings | ||||||
4 | counted toward a utility's applicable annual total savings | ||||||
5 | requirement must be from electrification of end uses in | ||||||
6 | low-income housing. The limitations on electrification savings | ||||||
7 | that may be counted toward a utility's annual savings goals | ||||||
8 | are separate from and in addition to the subsection (b-25) | ||||||
9 | limitations governing the counting of the other fuel savings | ||||||
10 | resulting from efficiency measures and programs. | ||||||
11 | As part of the annual informational filing to the | ||||||
12 | Commission that is required under paragraph (9) of subsection | ||||||
13 | (g) of this Section, each utility shall identify the specific | ||||||
14 | electrification measures offered under this subjection (b-27); | ||||||
15 | the quantity of each electrification measure that was | ||||||
16 | installed by its customers; the average total cost, average | ||||||
17 | utility cost, average reduction in fossil fuel consumption, | ||||||
18 | and average increase in electricity consumption associated | ||||||
19 | with each electrification measure; the portion of | ||||||
20 | installations of each electrification measure that were in | ||||||
21 | low-income single-family housing, low-income multifamily | ||||||
22 | housing, non-low-income single-family housing, non-low-income | ||||||
23 | multifamily housing, commercial buildings, and industrial | ||||||
24 | facilities; and the quantity of savings associated with each | ||||||
25 | measure category in each customer category that are being | ||||||
26 | counted toward the utility's applicable annual total savings |
| |||||||
| |||||||
1 | requirement. | ||||||
2 | (c) Electric utilities shall be responsible for overseeing | ||||||
3 | the design, development, and filing of energy efficiency plans | ||||||
4 | with the Commission and may, as part of that implementation, | ||||||
5 | outsource various aspects of program development and | ||||||
6 | implementation. A minimum of 10%, for electric utilities that | ||||||
7 | serve more than 3,000,000 retail customers in the State, and a | ||||||
8 | minimum of 7%, for electric utilities that serve less than | ||||||
9 | 3,000,000 retail customers but more than 500,000 retail | ||||||
10 | customers in the State, of the utility's entire portfolio | ||||||
11 | funding level for a given year shall be used to procure | ||||||
12 | cost-effective energy efficiency measures from units of local | ||||||
13 | government, municipal corporations, school districts, public | ||||||
14 | housing, and community college districts , and buildings owned | ||||||
15 | by nonprofit organizations , provided that a minimum percentage | ||||||
16 | of available funds shall be used to procure energy efficiency | ||||||
17 | from public housing, which percentage shall be equal to public | ||||||
18 | housing's share of public building energy consumption. | ||||||
19 | The utilities shall also implement energy efficiency | ||||||
20 | measures targeted at low-income households, which, for | ||||||
21 | purposes of this Section, shall be defined as households at or | ||||||
22 | below 80% of area median income, and expenditures to implement | ||||||
23 | the measures shall be no less than $40,000,000 $25,000,000 per | ||||||
24 | year for electric utilities that serve more than 3,000,000 | ||||||
25 | retail customers in the State and no less than $13,000,000 | ||||||
26 | $8,350,000 per year for electric utilities that serve less |
| |||||||
| |||||||
1 | than 3,000,000 retail customers but more than 500,000 retail | ||||||
2 | customers in the State. The ratio of spending on efficiency | ||||||
3 | programs targeted at low-income multifamily buildings to | ||||||
4 | spending on efficiency programs targeted at low-income | ||||||
5 | single-family buildings shall be designed to achieve levels of | ||||||
6 | savings from each building type that are approximately | ||||||
7 | proportional to the magnitude of cost-effective lifetime | ||||||
8 | savings potential in each building type. | ||||||
9 | The utilities shall work to bundle low-income energy | ||||||
10 | efficiency offerings with other programs that serve low-income | ||||||
11 | households to maximize the benefits going to these households. | ||||||
12 | The utilities shall market and implement low-income energy | ||||||
13 | efficiency programs in coordination with low-income assistance | ||||||
14 | programs, Solar for All, and weatherization whenever | ||||||
15 | practicable. The program implementer shall walk the customer | ||||||
16 | through the enrollment process for any programs for which the | ||||||
17 | customer is eligible. The utilities shall also pilot targeting | ||||||
18 | customers with high arrearages, high energy intensity (ratio | ||||||
19 | of energy usage divided by home or unit square footage), or | ||||||
20 | energy assistance programs with energy efficiency offerings, | ||||||
21 | and then track reduction in arrearages as a result of the | ||||||
22 | targeting. This targeting and bundling of low-income energy | ||||||
23 | programs shall be offered to both low-income single-family and | ||||||
24 | multifamily customers (owners and residents). | ||||||
25 | The utilities shall also implement a health and safety | ||||||
26 | fund of a minimum of 0.5% of the total portfolio budget, for |
| |||||||
| |||||||
1 | electric utilities that serve more than 3,000,000 retail | ||||||
2 | customers in the State, and a minimum of 0.5% of the total | ||||||
3 | portfolio budget, for electric utilities that serve less than | ||||||
4 | 3,000,000 retail customers but more than 500,000 retail | ||||||
5 | customers in the State, of the utility's entire portfolio | ||||||
6 | funding level for a given year, that shall be used for the | ||||||
7 | purpose of making grants for technical assistance, | ||||||
8 | construction, reconstruction, improvement, or repair of | ||||||
9 | buildings to facilitate their participation in the energy | ||||||
10 | efficiency programs targeted at low-income single-family and | ||||||
11 | multifamily households. These funds may also be used for the | ||||||
12 | purpose of making grants for technical assistance, | ||||||
13 | construction, reconstruction, improvement, or repair of the | ||||||
14 | following buildings to facilitate their participation in the | ||||||
15 | energy efficiency programs created by this Section: (1) | ||||||
16 | buildings that are owned or operated by registered 501(c)(3) | ||||||
17 | public charities; and (2) day care centers, day care homes, or | ||||||
18 | group day care homes, as defined under 89 Ill. Adm. Code Part | ||||||
19 | 406, 407, or 408, respectively. Utilities shall also ensure | ||||||
20 | that thermal insulating materials used for energy efficiency | ||||||
21 | programs targeted at low-income single-family and multifamily | ||||||
22 | households do not contain any substance that is a Category 1 | ||||||
23 | respiratory sensitizer as defined by Appendix A to 29 CFR | ||||||
24 | 1910.1200 (Health Hazard Criteria: A.4 Respiratory or Skin | ||||||
25 | Sensitization) that was intentionally added or is present at | ||||||
26 | greater than 0.1% (1000 ppm) by weight in the product. |
| |||||||
| |||||||
1 | Each electric utility shall assess opportunities to | ||||||
2 | implement cost-effective energy efficiency measures and | ||||||
3 | programs through a public housing authority or authorities | ||||||
4 | located in its service territory. If such opportunities are | ||||||
5 | identified, the utility shall propose such measures and | ||||||
6 | programs to address the opportunities. Expenditures to address | ||||||
7 | such opportunities shall be credited toward the minimum | ||||||
8 | procurement and expenditure requirements set forth in this | ||||||
9 | subsection (c). | ||||||
10 | Implementation of energy efficiency measures and programs | ||||||
11 | targeted at low-income households should be contracted, when | ||||||
12 | it is practicable, to independent third parties that have | ||||||
13 | demonstrated capabilities to serve such households, with a | ||||||
14 | preference for not-for-profit entities and government agencies | ||||||
15 | that have existing relationships with or experience serving | ||||||
16 | low-income communities in the State. | ||||||
17 | Each electric utility shall develop and implement | ||||||
18 | reporting procedures that address and assist in determining | ||||||
19 | the amount of energy savings that can be applied to the | ||||||
20 | low-income procurement and expenditure requirements set forth | ||||||
21 | in this subsection (c). Each electric utility shall also track | ||||||
22 | the types and quantities or volumes of insulation and air | ||||||
23 | sealing materials, and their associated energy saving | ||||||
24 | benefits, installed in energy efficiency programs targeted at | ||||||
25 | low-income single-family and multifamily households. | ||||||
26 | The electric utilities shall participate in also convene a |
| |||||||
| |||||||
1 | low-income energy efficiency accountability advisory committee | ||||||
2 | ("the committee"), which will directly inform to assist in the | ||||||
3 | design , implementation, and evaluation of the low-income and | ||||||
4 | public-housing energy efficiency programs. The committee shall | ||||||
5 | be comprised of the electric utilities subject to the | ||||||
6 | requirements of this Section, the gas utilities subject to the | ||||||
7 | requirements of Section 8-104.1 8-104 of this Act, the | ||||||
8 | utilities' low-income energy efficiency implementation | ||||||
9 | contractors, nonprofit organizations, community action | ||||||
10 | agencies, advocacy groups, State and local governmental | ||||||
11 | agencies, public-housing organizations, and representatives of | ||||||
12 | community-based organizations , especially those living in or | ||||||
13 | working with environmental justice communities and BIPOC | ||||||
14 | communities. The committee shall be composed of 2 | ||||||
15 | geographically differentiated subcommittees: one for | ||||||
16 | stakeholders in northern Illinois and one for stakeholders in | ||||||
17 | central and southern Illinois. The subcommittees shall meet | ||||||
18 | together at least twice per year . | ||||||
19 | There shall be one statewide leadership committee led by | ||||||
20 | and composed of community-based organizations that are | ||||||
21 | representative of BIPOC and environmental justice communities | ||||||
22 | and that includes equitable representation from BIPOC | ||||||
23 | communities. The leadership committee shall be composed of an | ||||||
24 | equal number of representatives from the 2 subcommittees. The | ||||||
25 | subcommittees shall address specific programs and issues, with | ||||||
26 | the leadership committee convening targeted workgroups as |
| |||||||
| |||||||
1 | needed. The leadership committee may elect to work with an | ||||||
2 | independent facilitator to solicit and organize feedback, | ||||||
3 | recommendations and meeting participation from a wide variety | ||||||
4 | of community-based stakeholders. If a facilitator is used, | ||||||
5 | they shall be fair and responsive to the needs of all | ||||||
6 | stakeholders involved in the committee. | ||||||
7 | All committee meetings must be accessible, with rotating | ||||||
8 | locations if meetings are held in-person, virtual | ||||||
9 | participation options, and materials and agendas circulated | ||||||
10 | well in advance. | ||||||
11 | There shall also be opportunities for direct input by | ||||||
12 | committee members outside of committee meetings, such as via | ||||||
13 | individual meetings, surveys, emails and calls, to ensure | ||||||
14 | robust participation by stakeholders with limited capacity and | ||||||
15 | ability to attend committee meetings. Committee meetings shall | ||||||
16 | emphasize opportunities to bundle and coordinate delivery of | ||||||
17 | low-income energy efficiency with other programs that serve | ||||||
18 | low-income communities, such as Solar for All and bill payment | ||||||
19 | assistance programs. Meetings shall include educational | ||||||
20 | opportunities for stakeholders to learn more about these | ||||||
21 | additional offerings, and the committee shall assist in | ||||||
22 | figuring out the best methods for coordinated delivery and | ||||||
23 | implementation of offerings when serving low-income | ||||||
24 | communities. The committee shall directly and equitably | ||||||
25 | influence and inform utility low-income and public-housing | ||||||
26 | energy efficiency programs and priorities. Participating |
| |||||||
| |||||||
1 | utilities shall implement recommendations from the committee | ||||||
2 | whenever possible. | ||||||
3 | Participating utilities shall track and report how input | ||||||
4 | from the committee has led to new approaches and changes in | ||||||
5 | their energy efficiency portfolios. This reporting shall occur | ||||||
6 | at committee meetings and in quarterly energy efficiency | ||||||
7 | reports to the Stakeholder Advisory Group and Illinois | ||||||
8 | Commerce Commission, and other relevant reporting mechanisms. | ||||||
9 | Participating utilities shall also report on relevant equity | ||||||
10 | data and metrics requested by the committee, such as energy | ||||||
11 | burden data, geographic, racial, and other relevant | ||||||
12 | demographic data on where programs are being delivered and | ||||||
13 | what populations programs are serving. | ||||||
14 | The Illinois Commerce Commission shall oversee and have | ||||||
15 | relevant staff participate in the committee. The committee | ||||||
16 | shall have a budget of 0.25% of each utility's entire | ||||||
17 | efficiency portfolio funding for a given year. The budget | ||||||
18 | shall be overseen by the Commission. The budget shall be used | ||||||
19 | to provide grants for community-based organizations serving on | ||||||
20 | the leadership committee, stipends for community-based | ||||||
21 | organizations participating in the committee, grants for | ||||||
22 | community-based organizations to do energy efficiency outreach | ||||||
23 | and education, and relevant meeting needs as determined by the | ||||||
24 | leadership committee. The education and outreach shall | ||||||
25 | include, but is not limited to, basic energy efficiency | ||||||
26 | education, information about low-income energy efficiency |
| |||||||
| |||||||
1 | programs, and information on the committee's purpose, | ||||||
2 | structure, and activities. | ||||||
3 | (d) Notwithstanding any other provision of law to the | ||||||
4 | contrary, a utility providing approved energy efficiency | ||||||
5 | measures and, if applicable, demand-response measures in the | ||||||
6 | State shall be permitted to recover all reasonable and | ||||||
7 | prudently incurred costs of those measures from all retail | ||||||
8 | customers, except as provided in subsection (l) of this | ||||||
9 | Section, as follows, provided that nothing in this subsection | ||||||
10 | (d) permits the double recovery of such costs from customers: | ||||||
11 | (1) The utility may recover its costs through an | ||||||
12 | automatic adjustment clause tariff filed with and approved | ||||||
13 | by the Commission. The tariff shall be established outside | ||||||
14 | the context of a general rate case. Each year the | ||||||
15 | Commission shall initiate a review to reconcile any | ||||||
16 | amounts collected with the actual costs and to determine | ||||||
17 | the required adjustment to the annual tariff factor to | ||||||
18 | match annual expenditures. To enable the financing of the | ||||||
19 | incremental capital expenditures, including regulatory | ||||||
20 | assets, for electric utilities that serve less than | ||||||
21 | 3,000,000 retail customers but more than 500,000 retail | ||||||
22 | customers in the State, the utility's actual year-end | ||||||
23 | capital structure that includes a common equity ratio, | ||||||
24 | excluding goodwill, of up to and including 50% of the | ||||||
25 | total capital structure shall be deemed reasonable and | ||||||
26 | used to set rates. |
| |||||||
| |||||||
1 | (2) A utility may recover its costs through an energy | ||||||
2 | efficiency formula rate approved by the Commission under a | ||||||
3 | filing under subsections (f) and (g) of this Section, | ||||||
4 | which shall specify the cost components that form the | ||||||
5 | basis of the rate charged to customers with sufficient | ||||||
6 | specificity to operate in a standardized manner and be | ||||||
7 | updated annually with transparent information that | ||||||
8 | reflects the utility's actual costs to be recovered during | ||||||
9 | the applicable rate year, which is the period beginning | ||||||
10 | with the first billing day of January and extending | ||||||
11 | through the last billing day of the following December. | ||||||
12 | The energy efficiency formula rate shall be implemented | ||||||
13 | through a tariff filed with the Commission under | ||||||
14 | subsections (f) and (g) of this Section that is consistent | ||||||
15 | with the provisions of this paragraph (2) and that shall | ||||||
16 | be applicable to all delivery services customers. The | ||||||
17 | Commission shall conduct an investigation of the tariff in | ||||||
18 | a manner consistent with the provisions of this paragraph | ||||||
19 | (2), subsections (f) and (g) of this Section, and the | ||||||
20 | provisions of Article IX of this Act to the extent they do | ||||||
21 | not conflict with this paragraph (2). The energy | ||||||
22 | efficiency formula rate approved by the Commission shall | ||||||
23 | remain in effect at the discretion of the utility and | ||||||
24 | shall do the following: | ||||||
25 | (A) Provide for the recovery of the utility's | ||||||
26 | actual costs incurred under this Section that are |
| |||||||
| |||||||
1 | prudently incurred and reasonable in amount consistent | ||||||
2 | with Commission practice and law. The sole fact that a | ||||||
3 | cost differs from that incurred in a prior calendar | ||||||
4 | year or that an investment is different from that made | ||||||
5 | in a prior calendar year shall not imply the | ||||||
6 | imprudence or unreasonableness of that cost or | ||||||
7 | investment. | ||||||
8 | (B) Reflect the utility's actual year-end capital | ||||||
9 | structure for the applicable calendar year, excluding | ||||||
10 | goodwill, subject to a determination of prudence and | ||||||
11 | reasonableness consistent with Commission practice and | ||||||
12 | law. To enable the financing of the incremental | ||||||
13 | capital expenditures, including regulatory assets, for | ||||||
14 | electric utilities that serve less than 3,000,000 | ||||||
15 | retail customers but more than 500,000 retail | ||||||
16 | customers in the State, a participating electric | ||||||
17 | utility's actual year-end capital structure that | ||||||
18 | includes a common equity ratio, excluding goodwill, of | ||||||
19 | up to and including 50% of the total capital structure | ||||||
20 | shall be deemed reasonable and used to set rates. | ||||||
21 | (C) Include a cost of equity, which shall be | ||||||
22 | calculated as the sum of the following: | ||||||
23 | (i) the average for the applicable calendar | ||||||
24 | year of the monthly average yields of 30-year U.S. | ||||||
25 | Treasury bonds published by the Board of Governors | ||||||
26 | of the Federal Reserve System in its weekly H.15 |
| |||||||
| |||||||
1 | Statistical Release or successor publication; and | ||||||
2 | (ii) 580 basis points. | ||||||
3 | At such time as the Board of Governors of the | ||||||
4 | Federal Reserve System ceases to include the monthly | ||||||
5 | average yields of 30-year U.S. Treasury bonds in its | ||||||
6 | weekly H.15 Statistical Release or successor | ||||||
7 | publication, the monthly average yields of the U.S. | ||||||
8 | Treasury bonds then having the longest duration | ||||||
9 | published by the Board of Governors in its weekly H.15 | ||||||
10 | Statistical Release or successor publication shall | ||||||
11 | instead be used for purposes of this paragraph (2). | ||||||
12 | (D) Permit and set forth protocols, subject to a | ||||||
13 | determination of prudence and reasonableness | ||||||
14 | consistent with Commission practice and law, for the | ||||||
15 | following: | ||||||
16 | (i) recovery of incentive compensation expense | ||||||
17 | that is based on the achievement of operational | ||||||
18 | metrics, including metrics related to budget | ||||||
19 | controls, outage duration and frequency, safety, | ||||||
20 | customer service, efficiency and productivity, and | ||||||
21 | environmental compliance; however, this protocol | ||||||
22 | shall not apply if such expense related to costs | ||||||
23 | incurred under this Section is recovered under | ||||||
24 | Article IX or Section 16-108.5 of this Act; | ||||||
25 | incentive compensation expense that is based on | ||||||
26 | net income or an affiliate's earnings per share |
| |||||||
| |||||||
1 | shall not be recoverable under the
energy | ||||||
2 | efficiency formula rate; | ||||||
3 | (ii) recovery of pension and other | ||||||
4 | post-employment benefits expense, provided that | ||||||
5 | such costs are supported by an actuarial study; | ||||||
6 | however, this protocol shall not apply if such | ||||||
7 | expense related to costs incurred under this | ||||||
8 | Section is recovered under Article IX or Section | ||||||
9 | 16-108.5 of this Act; | ||||||
10 | (iii) recovery of existing regulatory assets | ||||||
11 | over the periods previously authorized by the | ||||||
12 | Commission; | ||||||
13 | (iv) as described in subsection (e), | ||||||
14 | amortization of costs incurred under this Section; | ||||||
15 | and | ||||||
16 | (v) projected, weather normalized billing | ||||||
17 | determinants for the applicable rate year. | ||||||
18 | (E) Provide for an annual reconciliation, as | ||||||
19 | described in paragraph (3) of this subsection (d), | ||||||
20 | less any deferred taxes related to the reconciliation, | ||||||
21 | with interest at an annual rate of return equal to the | ||||||
22 | utility's weighted average cost of capital, including | ||||||
23 | a revenue conversion factor calculated to recover or | ||||||
24 | refund all additional income taxes that may be payable | ||||||
25 | or receivable as a result of that return, of the energy | ||||||
26 | efficiency revenue requirement reflected in rates for |
| |||||||
| |||||||
1 | each calendar year, beginning with the calendar year | ||||||
2 | in which the utility files its energy efficiency | ||||||
3 | formula rate tariff under this paragraph (2), with | ||||||
4 | what the revenue requirement would have been had the | ||||||
5 | actual cost information for the applicable calendar | ||||||
6 | year been available at the filing date. | ||||||
7 | The utility shall file, together with its tariff, the | ||||||
8 | projected costs to be incurred by the utility during the | ||||||
9 | rate year under the utility's multi-year plan approved | ||||||
10 | under subsections (f) and (g) of this Section, including, | ||||||
11 | but not limited to, the projected capital investment costs | ||||||
12 | and projected regulatory asset balances with | ||||||
13 | correspondingly updated depreciation and amortization | ||||||
14 | reserves and expense, that shall populate the energy | ||||||
15 | efficiency formula rate and set the initial rates under | ||||||
16 | the formula. | ||||||
17 | The Commission shall review the proposed tariff in | ||||||
18 | conjunction with its review of a proposed multi-year plan, | ||||||
19 | as specified in paragraph (5) of subsection (g) of this | ||||||
20 | Section. The review shall be based on the same evidentiary | ||||||
21 | standards, including, but not limited to, those concerning | ||||||
22 | the prudence and reasonableness of the costs incurred by | ||||||
23 | the utility, the Commission applies in a hearing to review | ||||||
24 | a filing for a general increase in rates under Article IX | ||||||
25 | of this Act. The initial rates shall take effect beginning | ||||||
26 | with the January monthly billing period following the |
| |||||||
| |||||||
1 | Commission's approval. | ||||||
2 | The tariff's rate design and cost allocation across | ||||||
3 | customer classes shall be consistent with the utility's | ||||||
4 | automatic adjustment clause tariff in effect on June 1, | ||||||
5 | 2017 (the effective date of Public Act 99-906); however, | ||||||
6 | the Commission may revise the tariff's rate design and | ||||||
7 | cost allocation in subsequent proceedings under paragraph | ||||||
8 | (3) of this subsection (d). | ||||||
9 | If the energy efficiency formula rate is terminated, | ||||||
10 | the then current rates shall remain in effect until such | ||||||
11 | time as the energy efficiency costs are incorporated into | ||||||
12 | new rates that are set under this subsection (d) or | ||||||
13 | Article IX of this Act, subject to retroactive rate | ||||||
14 | adjustment, with interest, to reconcile rates charged with | ||||||
15 | actual costs. | ||||||
16 | (3) The provisions of this paragraph (3) shall only | ||||||
17 | apply to an electric utility that has elected to file an | ||||||
18 | energy efficiency formula rate under paragraph (2) of this | ||||||
19 | subsection (d). Subsequent to the Commission's issuance of | ||||||
20 | an order approving the utility's energy efficiency formula | ||||||
21 | rate structure and protocols, and initial rates under | ||||||
22 | paragraph (2) of this subsection (d), the utility shall | ||||||
23 | file, on or before June 1 of each year, with the Chief | ||||||
24 | Clerk of the Commission its updated cost inputs to the | ||||||
25 | energy efficiency formula rate for the applicable rate | ||||||
26 | year and the corresponding new charges, as well as the |
| |||||||
| |||||||
1 | information described in paragraph (9) of subsection (g) | ||||||
2 | of this Section. Each such filing shall conform to the | ||||||
3 | following requirements and include the following | ||||||
4 | information: | ||||||
5 | (A) The inputs to the energy efficiency formula | ||||||
6 | rate for the applicable rate year shall be based on the | ||||||
7 | projected costs to be incurred by the utility during | ||||||
8 | the rate year under the utility's multi-year plan | ||||||
9 | approved under subsections (f) and (g) of this | ||||||
10 | Section, including, but not limited to, projected | ||||||
11 | capital investment costs and projected regulatory | ||||||
12 | asset balances with correspondingly updated | ||||||
13 | depreciation and amortization reserves and expense. | ||||||
14 | The filing shall also include a reconciliation of the | ||||||
15 | energy efficiency revenue requirement that was in | ||||||
16 | effect for the prior rate year (as set by the cost | ||||||
17 | inputs for the prior rate year) with the actual | ||||||
18 | revenue requirement for the prior rate year | ||||||
19 | (determined using a year-end rate base) that uses | ||||||
20 | amounts reflected in the applicable FERC Form 1 that | ||||||
21 | reports the actual costs for the prior rate year. Any | ||||||
22 | over-collection or under-collection indicated by such | ||||||
23 | reconciliation shall be reflected as a credit against, | ||||||
24 | or recovered as an additional charge to, respectively, | ||||||
25 | with interest calculated at a rate equal to the | ||||||
26 | utility's weighted average cost of capital approved by |
| |||||||
| |||||||
1 | the Commission for the prior rate year, the charges | ||||||
2 | for the applicable rate year. Such over-collection or | ||||||
3 | under-collection shall be adjusted to remove any | ||||||
4 | deferred taxes related to the reconciliation, for | ||||||
5 | purposes of calculating interest at an annual rate of | ||||||
6 | return equal to the utility's weighted average cost of | ||||||
7 | capital approved by the Commission for the prior rate | ||||||
8 | year, including a revenue conversion factor calculated | ||||||
9 | to recover or refund all additional income taxes that | ||||||
10 | may be payable or receivable as a result of that | ||||||
11 | return. Each reconciliation shall be certified by the | ||||||
12 | participating utility in the same manner that FERC | ||||||
13 | Form 1 is certified. The filing shall also include the | ||||||
14 | charge or credit, if any, resulting from the | ||||||
15 | calculation required by subparagraph (E) of paragraph | ||||||
16 | (2) of this subsection (d). | ||||||
17 | Notwithstanding any other provision of law to the | ||||||
18 | contrary, the intent of the reconciliation is to | ||||||
19 | ultimately reconcile both the revenue requirement | ||||||
20 | reflected in rates for each calendar year, beginning | ||||||
21 | with the calendar year in which the utility files its | ||||||
22 | energy efficiency formula rate tariff under paragraph | ||||||
23 | (2) of this subsection (d), with what the revenue | ||||||
24 | requirement determined using a year-end rate base for | ||||||
25 | the applicable calendar year would have been had the | ||||||
26 | actual cost information for the applicable calendar |
| |||||||
| |||||||
1 | year been available at the filing date. | ||||||
2 | For purposes of this Section, "FERC Form 1" means | ||||||
3 | the Annual Report of Major Electric Utilities, | ||||||
4 | Licensees and Others that electric utilities are | ||||||
5 | required to file with the Federal Energy Regulatory | ||||||
6 | Commission under the Federal Power Act, Sections 3, | ||||||
7 | 4(a), 304 and 209, modified as necessary to be | ||||||
8 | consistent with 83 Ill. Admin. Code Part 415 as of May | ||||||
9 | 1, 2011. Nothing in this Section is intended to allow | ||||||
10 | costs that are not otherwise recoverable to be | ||||||
11 | recoverable by virtue of inclusion in FERC Form 1. | ||||||
12 | (B) The new charges shall take effect beginning on | ||||||
13 | the first billing day of the following January billing | ||||||
14 | period and remain in effect through the last billing | ||||||
15 | day of the next December billing period regardless of | ||||||
16 | whether the Commission enters upon a hearing under | ||||||
17 | this paragraph (3). | ||||||
18 | (C) The filing shall include relevant and | ||||||
19 | necessary data and documentation for the applicable | ||||||
20 | rate year. Normalization adjustments shall not be | ||||||
21 | required. | ||||||
22 | Within 45 days after the utility files its annual | ||||||
23 | update of cost inputs to the energy efficiency formula | ||||||
24 | rate, the Commission shall with reasonable notice, | ||||||
25 | initiate a proceeding concerning whether the projected | ||||||
26 | costs to be incurred by the utility and recovered during |
| |||||||
| |||||||
1 | the applicable rate year, and that are reflected in the | ||||||
2 | inputs to the energy efficiency formula rate, are | ||||||
3 | consistent with the utility's approved multi-year plan | ||||||
4 | under subsections (f) and (g) of this Section and whether | ||||||
5 | the costs incurred by the utility during the prior rate | ||||||
6 | year were prudent and reasonable. The Commission shall | ||||||
7 | also have the authority to investigate the information and | ||||||
8 | data described in paragraph (9) of subsection (g) of this | ||||||
9 | Section, including the proposed adjustment to the | ||||||
10 | utility's return on equity component of its weighted | ||||||
11 | average cost of capital. During the course of the | ||||||
12 | proceeding, each objection shall be stated with | ||||||
13 | particularity and evidence provided in support thereof, | ||||||
14 | after which the utility shall have the opportunity to | ||||||
15 | rebut the evidence. Discovery shall be allowed consistent | ||||||
16 | with the Commission's Rules of Practice, which Rules of | ||||||
17 | Practice shall be enforced by the Commission or the | ||||||
18 | assigned administrative law judge. The Commission shall | ||||||
19 | apply the same evidentiary standards, including, but not | ||||||
20 | limited to, those concerning the prudence and | ||||||
21 | reasonableness of the costs incurred by the utility, | ||||||
22 | during the proceeding as it would apply in a proceeding to | ||||||
23 | review a filing for a general increase in rates under | ||||||
24 | Article IX of this Act. The Commission shall not, however, | ||||||
25 | have the authority in a proceeding under this paragraph | ||||||
26 | (3) to consider or order any changes to the structure or |
| |||||||
| |||||||
1 | protocols of the energy efficiency formula rate approved | ||||||
2 | under paragraph (2) of this subsection (d). In a | ||||||
3 | proceeding under this paragraph (3), the Commission shall | ||||||
4 | enter its order no later than the earlier of 195 days after | ||||||
5 | the utility's filing of its annual update of cost inputs | ||||||
6 | to the energy efficiency formula rate or December 15. The | ||||||
7 | utility's proposed return on equity calculation, as | ||||||
8 | described in paragraphs (7) through (9) of subsection (g) | ||||||
9 | of this Section, shall be deemed the final, approved | ||||||
10 | calculation on December 15 of the year in which it is filed | ||||||
11 | unless the Commission enters an order on or before | ||||||
12 | December 15, after notice and hearing, that modifies such | ||||||
13 | calculation consistent with this Section. The Commission's | ||||||
14 | determinations of the prudence and reasonableness of the | ||||||
15 | costs incurred, and determination of such return on equity | ||||||
16 | calculation, for the applicable calendar year shall be | ||||||
17 | final upon entry of the Commission's order and shall not | ||||||
18 | be subject to reopening, reexamination, or collateral | ||||||
19 | attack in any other Commission proceeding, case, docket, | ||||||
20 | order, rule, or regulation; however, nothing in this | ||||||
21 | paragraph (3) shall prohibit a party from petitioning the | ||||||
22 | Commission to rehear or appeal to the courts the order | ||||||
23 | under the provisions of this Act. | ||||||
24 | (e)
Beginning on June 1, 2017 (the effective date of | ||||||
25 | Public Act 99-906), a utility subject to the requirements of | ||||||
26 | this Section may elect to defer, as a regulatory asset, up to |
| |||||||
| |||||||
1 | the full amount of its expenditures incurred under this | ||||||
2 | Section for each annual period, including, but not limited to, | ||||||
3 | any expenditures incurred above the funding level set by | ||||||
4 | subsection (f) of this Section for a given year. The total | ||||||
5 | expenditures deferred as a regulatory asset in a given year | ||||||
6 | shall be amortized and recovered over a period that is equal to | ||||||
7 | the weighted average of the energy efficiency measure lives | ||||||
8 | implemented for that year that are reflected in the regulatory | ||||||
9 | asset. The unamortized balance shall be recognized as of | ||||||
10 | December 31 for a given year. The utility shall also earn a | ||||||
11 | return on the total of the unamortized balances of all of the | ||||||
12 | energy efficiency regulatory assets, less any deferred taxes | ||||||
13 | related to those unamortized balances, at an annual rate equal | ||||||
14 | to the utility's weighted average cost of capital that | ||||||
15 | includes, based on a year-end capital structure, the utility's | ||||||
16 | actual cost of debt for the applicable calendar year and a cost | ||||||
17 | of equity, which shall be calculated as the sum of the (i) the | ||||||
18 | average for the applicable calendar year of the monthly | ||||||
19 | average yields of 30-year U.S. Treasury bonds published by the | ||||||
20 | Board of Governors of the Federal Reserve System in its weekly | ||||||
21 | H.15 Statistical Release or successor publication; and (ii) | ||||||
22 | 580 basis points, including a revenue conversion factor | ||||||
23 | calculated to recover or refund all additional income taxes | ||||||
24 | that may be payable or receivable as a result of that return. | ||||||
25 | Capital investment costs shall be depreciated and recovered | ||||||
26 | over their useful lives consistent with generally accepted |
| |||||||
| |||||||
1 | accounting principles. The weighted average cost of capital | ||||||
2 | shall be applied to the capital investment cost balance, less | ||||||
3 | any accumulated depreciation and accumulated deferred income | ||||||
4 | taxes, as of December 31 for a given year. | ||||||
5 | When an electric utility creates a regulatory asset under | ||||||
6 | the provisions of this Section, the costs are recovered over a | ||||||
7 | period during which customers also receive a benefit which is | ||||||
8 | in the public interest. Accordingly, it is the intent of the | ||||||
9 | General Assembly that an electric utility that elects to | ||||||
10 | create a regulatory asset under the provisions of this Section | ||||||
11 | shall recover all of the associated costs as set forth in this | ||||||
12 | Section. After the Commission has approved the prudence and | ||||||
13 | reasonableness of the costs that comprise the regulatory | ||||||
14 | asset, the electric utility shall be permitted to recover all | ||||||
15 | such costs, and the value and recoverability through rates of | ||||||
16 | the associated regulatory asset shall not be limited, altered, | ||||||
17 | impaired, or reduced. | ||||||
18 | (f) Beginning in 2017, each electric utility shall file an | ||||||
19 | energy efficiency plan with the Commission to meet the energy | ||||||
20 | efficiency standards for the next applicable multi-year period | ||||||
21 | beginning January 1 of the year following the filing, | ||||||
22 | according to the schedule set forth in paragraphs (1) through | ||||||
23 | (3) of this subsection (f). If a utility does not file such a | ||||||
24 | plan on or before the applicable filing deadline for the plan, | ||||||
25 | it shall face a penalty of $100,000 per day until the plan is | ||||||
26 | filed. |
| |||||||
| |||||||
1 | (1) No later than 30 days after June 1, 2017 (the | ||||||
2 | effective date of Public Act 99-906), each electric | ||||||
3 | utility shall file a 4-year energy efficiency plan | ||||||
4 | commencing on January 1, 2018 that is designed to achieve | ||||||
5 | the cumulative persisting annual savings goals specified | ||||||
6 | in paragraphs (1) through (4) of subsection (b-5) of this | ||||||
7 | Section or in paragraphs (1) through (4) of subsection | ||||||
8 | (b-15) of this Section, as applicable, through | ||||||
9 | implementation of energy efficiency measures; however, the | ||||||
10 | goals may be reduced if the utility's expenditures are | ||||||
11 | limited pursuant to subsection (m) of this Section or, for | ||||||
12 | a utility that serves less than 3,000,000 retail | ||||||
13 | customers, if each of the following conditions are met: | ||||||
14 | (A) the plan's analysis and forecasts of the utility's | ||||||
15 | ability to acquire energy savings demonstrate that | ||||||
16 | achievement of such goals is not cost effective; and (B) | ||||||
17 | the amount of energy savings achieved by the utility as | ||||||
18 | determined by the independent evaluator for the most | ||||||
19 | recent year for which savings have been evaluated | ||||||
20 | preceding the plan filing was less than the average annual | ||||||
21 | amount of savings required to achieve the goals for the | ||||||
22 | applicable 4-year plan period. Except as provided in | ||||||
23 | subsection (m) of this Section, annual increases in | ||||||
24 | cumulative persisting annual savings goals during the | ||||||
25 | applicable 4-year plan period shall not be reduced to | ||||||
26 | amounts that are less than the maximum amount of |
| |||||||
| |||||||
1 | cumulative persisting annual savings that is forecast to | ||||||
2 | be cost-effectively achievable during the 4-year plan | ||||||
3 | period. The Commission shall review any proposed goal | ||||||
4 | reduction as part of its review and approval of the | ||||||
5 | utility's proposed plan. | ||||||
6 | (2) No later than March 1, 2021, each electric utility | ||||||
7 | shall file a 4-year energy efficiency plan commencing on | ||||||
8 | January 1, 2022 that is designed to achieve the cumulative | ||||||
9 | persisting annual savings goals specified in paragraphs | ||||||
10 | (5) through (8) of subsection (b-5) of this Section or in | ||||||
11 | paragraphs (5) through (8) of subsection (b-15) of this | ||||||
12 | Section, as applicable, through implementation of energy | ||||||
13 | efficiency measures; however, the goals may be reduced if | ||||||
14 | either (1) clear and convincing evidence demonstrates, | ||||||
15 | through independent analysis, that the expenditure limits
| ||||||
16 | in subsection (m) of this Section preclude full | ||||||
17 | achievement of the goals or (2) the utility's expenditures | ||||||
18 | are limited pursuant to subsection (m) of this Section or, | ||||||
19 | each of the following conditions are met: (A) the plan's | ||||||
20 | analysis and forecasts of the utility's ability to acquire | ||||||
21 | energy savings demonstrate by clear and convincing | ||||||
22 | evidence and through independent analysis that achievement | ||||||
23 | of such goals is not cost effective; and (B) the amount of | ||||||
24 | energy savings achieved by the utility as determined by | ||||||
25 | the independent evaluator for the most recent year for | ||||||
26 | which savings have been evaluated preceding the plan |
| |||||||
| |||||||
1 | filing was less than the average annual amount of savings | ||||||
2 | required to achieve the goals for the applicable 4-year | ||||||
3 | plan period. If there is any significant uncertainty | ||||||
4 | regarding whether achieving the savings goals specified in | ||||||
5 | paragraph (b-5) or (b-15) of this Section is possible both | ||||||
6 | cost-effectively and within the expenditure limits in | ||||||
7 | subsection (m), such savings goals shall not be reduced. | ||||||
8 | Except as provided in subsection (m) of this Section, | ||||||
9 | annual increases in cumulative persisting annual savings | ||||||
10 | goals during the applicable 4-year plan period shall not | ||||||
11 | be reduced to amounts that are less than the maximum | ||||||
12 | amount of cumulative persisting annual savings that is | ||||||
13 | forecast to be cost-effectively achievable during the | ||||||
14 | 4-year plan period. The Commission shall review any | ||||||
15 | proposed goal reduction as part of its review and approval | ||||||
16 | of the utility's proposed plan , taking into account the | ||||||
17 | results of the potential study required by subsection | ||||||
18 | (f-5) of this Section . | ||||||
19 | (3) No later than March 1, 2025, each electric utility | ||||||
20 | shall file a 4-year 5-year energy efficiency plan | ||||||
21 | commencing on January 1, 2026 that is designed to achieve | ||||||
22 | the cumulative persisting annual savings goals specified | ||||||
23 | in paragraphs (9) through (12) (13) of subsection (b-5) of | ||||||
24 | this Section or in paragraphs (9) through (12) (13) of | ||||||
25 | subsection (b-15) of this Section, as applicable, through | ||||||
26 | implementation of energy efficiency measures; however, the |
| |||||||
| |||||||
1 | goals may be reduced if either (1) clear and convincing | ||||||
2 | evidence demonstrates, through independent analysis, that | ||||||
3 | the expenditure limits in subsection (m) of this Section | ||||||
4 | preclude full achievement of the goals or (2) the | ||||||
5 | utility's expenditures are limited pursuant to subsection | ||||||
6 | (m) of this Section or, each of the following conditions | ||||||
7 | are met: (A) the plan's analysis and forecasts of the | ||||||
8 | utility's ability to acquire energy savings demonstrate by | ||||||
9 | clear and convincing evidence and through independent | ||||||
10 | analysis that achievement of such goals is not cost | ||||||
11 | effective; and (B) the amount of energy savings achieved | ||||||
12 | by the utility as determined by the independent evaluator | ||||||
13 | for the most recent year for which savings have been | ||||||
14 | evaluated preceding the plan filing was less than the | ||||||
15 | average annual amount of savings required to achieve the | ||||||
16 | goals for the applicable 4-year 5-year plan period. If | ||||||
17 | there is any significant uncertainty regarding whether | ||||||
18 | achieving the savings goals specified in paragraphs (b-5) | ||||||
19 | or (b-15) of this Section is possible both | ||||||
20 | cost-effectively and within the expenditure limits in | ||||||
21 | subsection (m), such savings goals shall not be reduced. | ||||||
22 | Except as provided in subsection (m) of this Section, | ||||||
23 | annual increases in cumulative persisting annual savings | ||||||
24 | goals during the applicable 4-year 5-year plan period | ||||||
25 | shall not be reduced to amounts that are less than the | ||||||
26 | maximum amount of cumulative persisting annual savings |
| |||||||
| |||||||
1 | that is forecast to be cost-effectively achievable during | ||||||
2 | the 4-year 5-year plan period. The Commission shall review | ||||||
3 | any proposed goal reduction as part of its review and | ||||||
4 | approval of the utility's proposed plan , taking into | ||||||
5 | account the results of the potential study required by | ||||||
6 | subsection (f-5) of this Section . | ||||||
7 | (4) No later than March 1, 2029, and every 4 years | ||||||
8 | thereafter, each electric utility shall file a 4-year | ||||||
9 | energy efficiency plan commencing on January 1, 2030, and | ||||||
10 | every 4 years thereafter, respectively, that is designed | ||||||
11 | to achieve the cumulative persisting annual savings goals | ||||||
12 | established by the Illinois Commerce Commission pursuant | ||||||
13 | to direction of subsections (b-5) and (b-15) of this | ||||||
14 | Section, as applicable, through implementation of energy | ||||||
15 | efficiency measures; however, the goals may be reduced if | ||||||
16 | either (1) clear and convincing evidence and independent | ||||||
17 | analysis demonstrates that the expenditure limits in | ||||||
18 | subsection (m) of this Section preclude full achievement | ||||||
19 | of the goals or (2) each of the following conditions are | ||||||
20 | met: (A) the plan's analysis and forecasts of the | ||||||
21 | utility's ability to acquire energy savings demonstrate by | ||||||
22 | clear and convincing evidence and through independent | ||||||
23 | analysis that achievement of such goals is not | ||||||
24 | cost-effective; and (B) the amount of energy savings | ||||||
25 | achieved by the utility as determined by the independent | ||||||
26 | evaluator for the most recent year for which savings have |
| |||||||
| |||||||
1 | been evaluated preceding the plan filing was less than the | ||||||
2 | average annual amount of savings required to achieve the | ||||||
3 | goals for the applicable 4-year plan period. If there is | ||||||
4 | any significant uncertainty regarding whether achieving | ||||||
5 | the savings goals specified in paragraphs (b-5) or (b-15) | ||||||
6 | of this Section is possible both cost-effectively and | ||||||
7 | within the expenditure limits in subsection (m), such | ||||||
8 | savings goals shall not be reduced. Except as provided in | ||||||
9 | subsection (m) of this Section, annual increases in | ||||||
10 | cumulative persisting annual savings goals during the | ||||||
11 | applicable 4-year plan period shall not be reduced to | ||||||
12 | amounts that are less than the maximum amount of | ||||||
13 | cumulative persisting annual savings that is forecast to | ||||||
14 | be cost-effectively achievable during the 4-year plan | ||||||
15 | period. The Commission shall review any proposed goal | ||||||
16 | reduction as part of its review and approval of the | ||||||
17 | utility's proposed plan. | ||||||
18 | Each utility's plan shall set forth the utility's | ||||||
19 | proposals to meet the energy efficiency standards identified | ||||||
20 | in subsection (b-5) or (b-15), as applicable and as such | ||||||
21 | standards may have been modified under this subsection (f), | ||||||
22 | taking into account the unique circumstances of the utility's | ||||||
23 | service territory and results of an energy efficiency | ||||||
24 | potential study as described in subsection (f-5) of this | ||||||
25 | Section . For those plans commencing on January 1, 2018, the | ||||||
26 | Commission shall seek public comment on the utility's plan and |
| |||||||
| |||||||
1 | shall issue an order approving or disapproving each plan no | ||||||
2 | later than 105 days after June 1, 2017 (the effective date of | ||||||
3 | Public Act 99-906). For those plans commencing after December | ||||||
4 | 31, 2021, the Commission shall seek public comment on the | ||||||
5 | utility's plan and shall issue an order approving or | ||||||
6 | disapproving each plan within 6 months after its submission. | ||||||
7 | If the Commission disapproves a plan, the Commission shall, | ||||||
8 | within 30 days, describe in detail the reasons for the | ||||||
9 | disapproval and describe a path by which the utility may file a | ||||||
10 | revised draft of the plan to address the Commission's concerns | ||||||
11 | satisfactorily. If the utility does not refile with the | ||||||
12 | Commission within 60 days, the utility shall be subject to | ||||||
13 | penalties at a rate of $100,000 per day until the plan is | ||||||
14 | filed. This process shall continue, and penalties shall | ||||||
15 | accrue, until the utility has successfully filed a portfolio | ||||||
16 | of energy efficiency and demand-response measures. Penalties | ||||||
17 | shall be deposited into the Energy Efficiency Trust Fund. | ||||||
18 | (f-5) Energy efficiency potential study. An energy | ||||||
19 | efficiency potential study shall be commissioned and overseen | ||||||
20 | by the Illinois Commerce Commission. The potential study shall | ||||||
21 | be a dual fuel study, addressing both gas and electric | ||||||
22 | efficiency potential, such that the requirements both in this | ||||||
23 | subsection (f-5) and in subsection (j-5) of Section 8-104.1 | ||||||
24 | are met in an integrated and cost-efficient manner. The | ||||||
25 | potential study shall be reviewed as part of the approval of a | ||||||
26 | utility's plan filed pursuant to subsection (f) of this |
| |||||||
| |||||||
1 | Section. The potential study shall be designed and conducted | ||||||
2 | with input from a Potential Study Stakeholder Committee | ||||||
3 | established by the Commission. This Committee shall be | ||||||
4 | composed of representatives from each electric utility, the | ||||||
5 | Illinois Attorney General's office, at least 2 environmental | ||||||
6 | stakeholders, at least one community-based organization, and | ||||||
7 | additional parties representing consumers. The Committee shall | ||||||
8 | provide input, at a minimum, into the scope of work for the | ||||||
9 | studies, the selection of vendors to perform the studies in | ||||||
10 | accordance with appropriate confidentiality and conflict of | ||||||
11 | interest provisions, and draft work products. The Committee | ||||||
12 | shall make best efforts to achieve consensus on the key | ||||||
13 | elements of the potential study, including: | ||||||
14 | (i) savings potential from efficiency measures and | ||||||
15 | program concepts that are known at the time of the study; | ||||||
16 | (ii) likely emergence of new technology or new program | ||||||
17 | concepts that could emerge; | ||||||
18 | (iii) likely savings potential from efficiency | ||||||
19 | measures that may be unique to individual industries or | ||||||
20 | individual facilities; and | ||||||
21 | (iv) the experience of other similar utilities, areas | ||||||
22 | and jurisdictions in maximizing achievement of | ||||||
23 | cost-effective savings. | ||||||
24 | When the Committee is not able to reach consensus, the | ||||||
25 | Commission shall make the final decision. | ||||||
26 | (g) In submitting proposed plans and funding levels under |
| |||||||
| |||||||
1 | subsection (f) of this Section to meet the savings goals | ||||||
2 | identified in subsection (b-5) or (b-15) of this Section, as | ||||||
3 | applicable, the utility shall: | ||||||
4 | (1) Demonstrate that its proposed energy efficiency | ||||||
5 | measures will achieve the applicable requirements that are | ||||||
6 | identified in subsection (b-5) or (b-15) of this Section, | ||||||
7 | as modified by subsection (f) of this Section. | ||||||
8 | (2) (Blank). Present specific proposals to implement | ||||||
9 | new building and appliance standards that have been placed | ||||||
10 | into effect. | ||||||
11 | (2.5) Demonstrate consideration of program options for | ||||||
12 | (A) advancing new building codes, appliance standards, and | ||||||
13 | municipal regulations governing existing and new building | ||||||
14 | efficiency improvements and (B) supporting efforts to | ||||||
15 | improve compliance with new building codes, appliance | ||||||
16 | standards and municipal regulations, as potentially | ||||||
17 | cost-effective means of acquiring energy savings to count | ||||||
18 | toward savings goals. | ||||||
19 | (3) Demonstrate that its overall portfolio of | ||||||
20 | measures, not including low-income programs described in | ||||||
21 | subsection (c) of this Section, is cost-effective using | ||||||
22 | the total resource cost test or complies with paragraphs | ||||||
23 | (1) through (3) of subsection (f) of this Section and | ||||||
24 | represents a diverse cross-section of opportunities for | ||||||
25 | customers of all rate classes, other than those customers | ||||||
26 | described in subsection (l) of this Section, to |
| |||||||
| |||||||
1 | participate in the programs. Individual measures need not | ||||||
2 | be cost effective. | ||||||
3 | (3.5) Demonstrate that the utility's plan integrates | ||||||
4 | the delivery of energy efficiency programs with natural | ||||||
5 | gas efficiency programs, programs promoting distributed | ||||||
6 | solar, programs promoting demand response and other | ||||||
7 | efforts to address bill payment issues, including, but not | ||||||
8 | limited to, LIHEAP and the Percentage of Income Payment | ||||||
9 | Plan, to the extent such integration is practical and has | ||||||
10 | the potential to enhance customer engagement, minimize | ||||||
11 | market confusion, or reduce administrative costs. | ||||||
12 | (4) Present a third-party energy efficiency | ||||||
13 | implementation program subject to the following | ||||||
14 | requirements: | ||||||
15 | (A) beginning with the year commencing January 1, | ||||||
16 | 2019, electric utilities that serve more than | ||||||
17 | 3,000,000 retail customers in the State shall fund | ||||||
18 | third-party energy efficiency programs in an amount | ||||||
19 | that is no less than $25,000,000 per year, and | ||||||
20 | electric utilities that serve less than 3,000,000 | ||||||
21 | retail customers but more than 500,000 retail | ||||||
22 | customers in the State shall fund third-party energy | ||||||
23 | efficiency programs in an amount that is no less than | ||||||
24 | $8,350,000 per year; | ||||||
25 | (B) during 2018, the utility shall conduct a | ||||||
26 | solicitation process for purposes of requesting |
| |||||||
| |||||||
1 | proposals from third-party vendors for those | ||||||
2 | third-party energy efficiency programs to be offered | ||||||
3 | during one or more of the years commencing January 1, | ||||||
4 | 2019, January 1, 2020, and January 1, 2021; for those | ||||||
5 | multi-year plans commencing on January 1, 2022 and | ||||||
6 | January 1, 2026, the utility shall conduct a | ||||||
7 | solicitation process during 2021 and 2025, | ||||||
8 | respectively, for purposes of requesting proposals | ||||||
9 | from third-party vendors for those third-party energy | ||||||
10 | efficiency programs to be offered during one or more | ||||||
11 | years of the respective multi-year plan period; for | ||||||
12 | each solicitation process, the utility shall identify | ||||||
13 | the sector, technology, or geographical area for which | ||||||
14 | it is seeking requests for proposals; the solicitation | ||||||
15 | process must be either for programs that fill gaps in | ||||||
16 | the utility's program portfolio or for programs that | ||||||
17 | target business sectors, building types, geographies, | ||||||
18 | or other specific parts of its customer base with | ||||||
19 | initiatives that would be more effective at reaching | ||||||
20 | these customer segments than the utilities' programs | ||||||
21 | filed in its energy efficiency plans; | ||||||
22 | (C) the utility shall propose the bidder | ||||||
23 | qualifications, performance measurement process, and | ||||||
24 | contract structure, which must include a performance | ||||||
25 | payment mechanism and general terms and conditions; | ||||||
26 | the proposed qualifications, process, and structure |
| |||||||
| |||||||
1 | shall be subject to Commission approval; and | ||||||
2 | (D) the utility shall retain an independent third | ||||||
3 | party to score the proposals received through the | ||||||
4 | solicitation process described in this paragraph (4), | ||||||
5 | rank them according to their cost per lifetime | ||||||
6 | kilowatt-hours saved, and assemble the portfolio of | ||||||
7 | third-party programs. | ||||||
8 | The electric utility shall recover all costs | ||||||
9 | associated with Commission-approved, third-party | ||||||
10 | administered programs regardless of the success of those | ||||||
11 | programs. | ||||||
12 | (4.5) Implement cost-effective demand-response | ||||||
13 | measures to reduce peak demand by 0.1% over the prior year | ||||||
14 | for eligible retail customers, as defined in Section | ||||||
15 | 16-111.5 of this Act, and for customers that elect hourly | ||||||
16 | service from the utility pursuant to Section 16-107 of | ||||||
17 | this Act, provided those customers have not been declared | ||||||
18 | competitive. This requirement continues until December 31, | ||||||
19 | 2026. | ||||||
20 | (5) Include a proposed or revised cost-recovery tariff | ||||||
21 | mechanism, as provided for under subsection (d) of this | ||||||
22 | Section, to fund the proposed energy efficiency and | ||||||
23 | demand-response measures and to ensure the recovery of the | ||||||
24 | prudently and reasonably incurred costs of | ||||||
25 | Commission-approved programs. | ||||||
26 | (6) Provide for an annual independent evaluation of |
| |||||||
| |||||||
1 | the performance of the cost-effectiveness of the utility's | ||||||
2 | portfolio of measures, as well as a full review of the | ||||||
3 | multi-year plan results of the broader net program impacts | ||||||
4 | and, to the extent practical, for adjustment of the | ||||||
5 | measures on a going-forward basis as a result of the | ||||||
6 | evaluations. The resources dedicated to evaluation shall | ||||||
7 | not exceed 3% of portfolio resources in any given year. | ||||||
8 | (7) For electric utilities that serve more than | ||||||
9 | 3,000,000 retail customers in the State: | ||||||
10 | (A) Through December 31, 2025, provide for an | ||||||
11 | adjustment to the return on equity component of the | ||||||
12 | utility's weighted average cost of capital calculated | ||||||
13 | under subsection (d) of this Section: | ||||||
14 | (i) If the independent evaluator determines | ||||||
15 | that the utility achieved a cumulative persisting | ||||||
16 | annual savings that is less than the applicable | ||||||
17 | annual incremental goal, then the return on equity | ||||||
18 | component shall be reduced by a maximum of 200 | ||||||
19 | basis points in the event that the utility | ||||||
20 | achieved no more than 75% of such goal. If the | ||||||
21 | utility achieved more than 75% of the applicable | ||||||
22 | annual incremental goal but less than 100% of such | ||||||
23 | goal, then the return on equity component shall be | ||||||
24 | reduced by 8 basis points for each percent by | ||||||
25 | which the utility failed to achieve the goal. | ||||||
26 | (ii) If the independent evaluator determines |
| |||||||
| |||||||
1 | that the utility achieved a cumulative persisting | ||||||
2 | annual savings that is more than the applicable | ||||||
3 | annual incremental goal, then the return on equity | ||||||
4 | component shall be increased by a maximum of 200 | ||||||
5 | basis points in the event that the utility | ||||||
6 | achieved at least 125% of such goal. If the | ||||||
7 | utility achieved more than 100% of the applicable | ||||||
8 | annual incremental goal but less than 125% of such | ||||||
9 | goal, then the return on equity component shall be | ||||||
10 | increased by 8 basis points for each percent by | ||||||
11 | which the utility achieved above the goal. If the | ||||||
12 | applicable annual incremental goal was reduced | ||||||
13 | under paragraphs (1) or (2) of subsection (f) of | ||||||
14 | this Section, then the following adjustments shall | ||||||
15 | be made to the calculations described in this item | ||||||
16 | (ii): | ||||||
17 | (aa) the calculation for determining | ||||||
18 | achievement that is at least 125% of the | ||||||
19 | applicable annual incremental goal shall use | ||||||
20 | the unreduced applicable annual incremental | ||||||
21 | goal to set the value; and | ||||||
22 | (bb) the calculation for determining | ||||||
23 | achievement that is less than 125% but more | ||||||
24 | than 100% of the applicable annual incremental | ||||||
25 | goal shall use the reduced applicable annual | ||||||
26 | incremental goal to set the value for 100% |
| |||||||
| |||||||
1 | achievement of the goal and shall use the | ||||||
2 | unreduced goal to set the value for 125% | ||||||
3 | achievement. The 8 basis point value shall | ||||||
4 | also be modified, as necessary, so that the | ||||||
5 | 200 basis points are evenly apportioned among | ||||||
6 | each percentage point value between 100% and | ||||||
7 | 125% achievement. | ||||||
8 | (B) For the period January 1, 2026 through | ||||||
9 | December 31, 2029 and in all subsequent 4-year periods | ||||||
10 | 2030 , provide for an adjustment to the return on | ||||||
11 | equity component of the utility's weighted average | ||||||
12 | cost of capital calculated under subsection (d) of | ||||||
13 | this Section: | ||||||
14 | (i) If the independent evaluator determines | ||||||
15 | that the utility achieved a cumulative persisting | ||||||
16 | annual savings that is less than the applicable | ||||||
17 | annual incremental goal, then the return on equity | ||||||
18 | component shall be reduced by a maximum of 200 | ||||||
19 | basis points in the event that the utility | ||||||
20 | achieved no more than 66% of such goal. If the | ||||||
21 | utility achieved more than 66% of the applicable | ||||||
22 | annual incremental goal but less than 100% of such | ||||||
23 | goal, then the return on equity component shall be | ||||||
24 | reduced by 6 basis points for each percent by | ||||||
25 | which the utility failed to achieve the goal. | ||||||
26 | (ii) If the independent evaluator determines |
| |||||||
| |||||||
1 | that the utility achieved a cumulative persisting | ||||||
2 | annual savings that is more than the applicable | ||||||
3 | annual incremental goal, then the return on equity | ||||||
4 | component shall be increased by a maximum of 200 | ||||||
5 | basis points in the event that the utility | ||||||
6 | achieved at least 134% of such goal. If the | ||||||
7 | utility achieved more than 100% of the applicable | ||||||
8 | annual incremental goal but less than 134% of such | ||||||
9 | goal, then the return on equity component shall be | ||||||
10 | increased by 6 basis points for each percent by | ||||||
11 | which the utility achieved above the goal. If the | ||||||
12 | applicable annual incremental goal was reduced | ||||||
13 | under paragraph (3) of subsection (f) of this | ||||||
14 | Section, then the following adjustments shall be | ||||||
15 | made to the calculations described in this item | ||||||
16 | (ii): | ||||||
17 | (aa) the calculation for determining | ||||||
18 | achievement that is at least 134% of the | ||||||
19 | applicable annual incremental goal shall use | ||||||
20 | the unreduced applicable annual incremental | ||||||
21 | goal to set the value; and | ||||||
22 | (bb) the calculation for determining | ||||||
23 | achievement that is less than 134% but more | ||||||
24 | than 100% of the applicable annual incremental | ||||||
25 | goal shall use the reduced applicable annual | ||||||
26 | incremental goal to set the value for 100% |
| |||||||
| |||||||
1 | achievement of the goal and shall use the | ||||||
2 | unreduced goal to set the value for 134% | ||||||
3 | achievement. The 6 basis point value shall | ||||||
4 | also be modified, as necessary, so that the | ||||||
5 | 200 basis points are evenly apportioned among | ||||||
6 | each percentage point value between 100% and | ||||||
7 | 134% achievement. | ||||||
8 | (C) Notwithstanding the provisions of | ||||||
9 | subparagraphs (A) and (B) of this paragraph (7), if | ||||||
10 | the applicable annual incremental goal for an electric | ||||||
11 | utility is ever less than 0.6% of deemed average | ||||||
12 | weather normalized sales of electric power and energy | ||||||
13 | during calendar years 2014, 2015, and 2016, an | ||||||
14 | adjustment to the return on equity component of the | ||||||
15 | utility's weighted average cost of capital calculated | ||||||
16 | under subsection (d) of this Section shall be made as | ||||||
17 | follows: | ||||||
18 | (i) If the independent evaluator determines | ||||||
19 | that the utility achieved a cumulative persisting | ||||||
20 | annual savings that is less than would have been | ||||||
21 | achieved had the applicable annual incremental | ||||||
22 | goal been achieved, then the return on equity | ||||||
23 | component shall be reduced by a maximum of 200 | ||||||
24 | basis points if the utility achieved no more than | ||||||
25 | 75% of its applicable annual total savings | ||||||
26 | requirement as defined in paragraph (7.5) of this |
| |||||||
| |||||||
1 | subsection. If the utility achieved more than 75% | ||||||
2 | of the applicable annual total savings requirement | ||||||
3 | but less than 100% of such goal, then the return on | ||||||
4 | equity component shall be reduced by 8 basis | ||||||
5 | points for each percent by which the utility | ||||||
6 | failed to achieve the goal. | ||||||
7 | (ii) If the independent evaluator determines | ||||||
8 | that the utility achieved a cumulative persisting | ||||||
9 | annual savings that is more than would have been | ||||||
10 | achieved had the applicable annual incremental | ||||||
11 | goal been achieved, then the return on equity | ||||||
12 | component shall be increased by a maximum of 200 | ||||||
13 | basis points if the utility achieved at least 125% | ||||||
14 | of its applicable annual total savings | ||||||
15 | requirement. If the utility achieved more than | ||||||
16 | 100% of the applicable annual total savings | ||||||
17 | requirement but less than 125% of such goal, then | ||||||
18 | the return on equity component shall be increased | ||||||
19 | by 8 basis points for each percent by which the | ||||||
20 | utility achieved above the applicable annual total | ||||||
21 | savings requirement. If the applicable annual | ||||||
22 | incremental goal was reduced under paragraphs (1) | ||||||
23 | or (2) of subsection (f) of this Section, then the | ||||||
24 | following adjustments shall be made to the | ||||||
25 | calculations described in this item (ii): | ||||||
26 | (aa) the calculation for determining |
| |||||||
| |||||||
1 | achievement that is at least 125% of the | ||||||
2 | applicable annual total savings requirement | ||||||
3 | shall use the unreduced applicable annual | ||||||
4 | incremental goal to set the value; and | ||||||
5 | (bb) the calculation for determining | ||||||
6 | achievement that is less than 125% but more | ||||||
7 | than 100% of the applicable annual total | ||||||
8 | savings requirement shall use the reduced | ||||||
9 | applicable annual incremental goal to set the | ||||||
10 | value for 100% achievement of the goal and | ||||||
11 | shall use the unreduced goal to set the value | ||||||
12 | for 125% achievement. The 8 basis point value | ||||||
13 | shall also be modified, as necessary, so that | ||||||
14 | the 200 basis points are evenly apportioned | ||||||
15 | among each percentage point value between 100% | ||||||
16 | and 125% achievement. | ||||||
17 | (7.5) For purposes of this Section, the term | ||||||
18 | "applicable
annual incremental goal" means the difference | ||||||
19 | between the
cumulative persisting annual savings goal for | ||||||
20 | the calendar
year that is the subject of the independent | ||||||
21 | evaluator's
determination and the cumulative persisting | ||||||
22 | annual savings
goal for the immediately preceding calendar | ||||||
23 | year, as such
goals are defined in subsections (b-5) and | ||||||
24 | (b-15) of this
Section and as these goals may have been | ||||||
25 | modified as
provided for under subsection (b-20) and | ||||||
26 | paragraphs (1)
through (3) of subsection (f) of this |
| |||||||
| |||||||
1 | Section. Under
subsections (b), (b-5), (b-10), and (b-15) | ||||||
2 | of this Section,
a utility must first replace energy | ||||||
3 | savings from measures
that have expired reached the end of | ||||||
4 | their measure lives and would
otherwise have to be | ||||||
5 | replaced to meet the applicable
savings goals identified | ||||||
6 | in subsection (b-5) or (b-15) of this Section before any | ||||||
7 | progress towards achievement of its
applicable annual | ||||||
8 | incremental goal may be counted. Savings may expire | ||||||
9 | because measures installed in previous years have reached | ||||||
10 | the end of their lives, because measures installed in | ||||||
11 | previous years are producing lower savings in the current | ||||||
12 | year than in the previous year, or for other reasons | ||||||
13 | identified by independent evaluators.
Notwithstanding | ||||||
14 | anything else set forth in this Section,
the difference | ||||||
15 | between the actual annual incremental
savings achieved in | ||||||
16 | any given year, including the
replacement of energy | ||||||
17 | savings from measures that have
expired, and the | ||||||
18 | applicable annual incremental goal shall
not affect | ||||||
19 | adjustments to the return on equity for
subsequent | ||||||
20 | calendar years under this subsection (g). | ||||||
21 | In this Section, "applicable annual total savings | ||||||
22 | requirement" means the total amount of new annual savings | ||||||
23 | that the utility must achieve in any given year to achieve | ||||||
24 | the applicable annual incremental goal. This is equal to | ||||||
25 | the applicable annual incremental goal plus the total new | ||||||
26 | annual savings that are required to replace savings that |
| |||||||
| |||||||
1 | expired in or at the end of the previous year. | ||||||
2 | (8) For electric utilities that serve less than | ||||||
3 | 3,000,000 retail customers but more than 500,000 retail | ||||||
4 | customers in the State: | ||||||
5 | (A) Through December 31, 2025, the applicable | ||||||
6 | annual incremental goal shall be compared to the | ||||||
7 | annual incremental savings as determined by the | ||||||
8 | independent evaluator. | ||||||
9 | (i) The return on equity component shall be | ||||||
10 | reduced by 8 basis points for each percent by | ||||||
11 | which the utility did not achieve 84.4% of the | ||||||
12 | applicable annual incremental goal. | ||||||
13 | (ii) The return on equity component shall be | ||||||
14 | increased by 8 basis points for each percent by | ||||||
15 | which the utility exceeded 100% of the applicable | ||||||
16 | annual incremental goal. | ||||||
17 | (iii) The return on equity component shall not | ||||||
18 | be increased or decreased if the annual | ||||||
19 | incremental savings as determined by the | ||||||
20 | independent evaluator is greater than 84.4% of the | ||||||
21 | applicable annual incremental goal and less than | ||||||
22 | 100% of the applicable annual incremental goal. | ||||||
23 | (iv) The return on equity component shall not | ||||||
24 | be increased or decreased by an amount greater | ||||||
25 | than 200 basis points pursuant to this | ||||||
26 | subparagraph (A). |
| |||||||
| |||||||
1 | (B) For the period of January 1, 2026 through | ||||||
2 | December 31, 2029 and in all subsequent 4-year periods | ||||||
3 | 2030 , the applicable annual incremental goal shall be | ||||||
4 | compared to the annual incremental savings as | ||||||
5 | determined by the independent evaluator. | ||||||
6 | (i) The return on equity component shall be | ||||||
7 | reduced by 6 basis points for each percent by | ||||||
8 | which the utility did not achieve 100% of the | ||||||
9 | applicable annual incremental goal. | ||||||
10 | (ii) The return on equity component shall be | ||||||
11 | increased by 6 basis points for each percent by | ||||||
12 | which the utility exceeded 100% of the applicable | ||||||
13 | annual incremental goal. | ||||||
14 | (iii) The return on equity component shall not | ||||||
15 | be increased or decreased by an amount greater | ||||||
16 | than 200 basis points pursuant to this | ||||||
17 | subparagraph (B). | ||||||
18 | (C) Notwithstanding provisions in subparagraphs | ||||||
19 | (A) and (B) of paragraph (7) of this subsection, if the | ||||||
20 | applicable annual incremental goal for an electric | ||||||
21 | utility is ever less than 0.6% of deemed average | ||||||
22 | weather normalized sales of electric power and energy | ||||||
23 | during calendar years 2014, 2015 and 2016, an | ||||||
24 | adjustment to the return on equity component of the | ||||||
25 | utility's weighted average cost of capital calculated | ||||||
26 | under subsection (d) of this Section shall be made as |
| |||||||
| |||||||
1 | follows: | ||||||
2 | (i) The return on equity component shall be | ||||||
3 | reduced by 8 basis points for each percent by | ||||||
4 | which the utility did not achieve 100% of the | ||||||
5 | applicable annual total savings requirement. | ||||||
6 | (ii) The return on equity component shall be | ||||||
7 | increased by 8 basis points for each percent by | ||||||
8 | which the utility exceeded 100% of the applicable | ||||||
9 | annual total savings requirement. | ||||||
10 | (iii) The return on equity component shall not | ||||||
11 | be increased or decreased by an amount greater | ||||||
12 | than 200 basis points pursuant to this | ||||||
13 | subparagraph (C). | ||||||
14 | (D) (C) If the applicable annual incremental goal | ||||||
15 | was reduced under paragraphs (1), (2) , or (3) , or (4) | ||||||
16 | of subsection (f) of this Section, then the following | ||||||
17 | adjustments shall be made to the calculations | ||||||
18 | described in subparagraphs (A) , and (B) , and (C) of | ||||||
19 | this paragraph (8): | ||||||
20 | (i) The calculation for determining | ||||||
21 | achievement that is at least 125% or 134%, as | ||||||
22 | applicable, of the applicable annual incremental | ||||||
23 | goal or the applicable annual total savings | ||||||
24 | requirement, as applicable, shall use the | ||||||
25 | unreduced applicable annual incremental goal to | ||||||
26 | set the value. |
| |||||||
| |||||||
1 | (ii) For the period through December 31, 2025, | ||||||
2 | the calculation for determining achievement that | ||||||
3 | is less than 125% but more than 100% of the | ||||||
4 | applicable annual incremental goal or the | ||||||
5 | applicable annual total savings requirement, as | ||||||
6 | applicable, shall use the reduced applicable | ||||||
7 | annual incremental goal to set the value for 100% | ||||||
8 | achievement of the goal and shall use the | ||||||
9 | unreduced goal to set the value for 125% | ||||||
10 | achievement. The 8 basis point value shall also be | ||||||
11 | modified, as necessary, so that the 200 basis | ||||||
12 | points are evenly apportioned among each | ||||||
13 | percentage point value between 100% and 125% | ||||||
14 | achievement. | ||||||
15 | (iii) For the period of January 1, 2026 | ||||||
16 | through December 31, 2029 and all subsequent | ||||||
17 | 4-year periods, the calculation for determining | ||||||
18 | achievement that is less than 125% or 134%, as | ||||||
19 | applicable, but more than 100% of the applicable | ||||||
20 | annual incremental goal or the applicable annual | ||||||
21 | total savings requirement, as applicable, shall | ||||||
22 | use the reduced applicable annual incremental goal | ||||||
23 | to set the value for 100% achievement of the goal | ||||||
24 | and shall use the unreduced goal to set the value | ||||||
25 | for 125% achievement. The 6 or 8 basis point | ||||||
26 | values, as applicable, shall also be modified, as |
| |||||||
| |||||||
1 | necessary, so that the 200 basis points are evenly | ||||||
2 | apportioned among each percentage point value | ||||||
3 | between 100% and 125% or between 100% and 134% | ||||||
4 | achievement, as applicable 2030, the calculation | ||||||
5 | for determining achievement that is less than 134% | ||||||
6 | but more than 100% of the applicable annual | ||||||
7 | incremental goal shall use the reduced applicable | ||||||
8 | annual incremental goal to set the value for 100% | ||||||
9 | achievement of the goal and shall use the | ||||||
10 | unreduced goal to set the value for 125% | ||||||
11 | achievement. The 6 basis point value shall also be | ||||||
12 | modified, as necessary, so that the 200 basis | ||||||
13 | points are evenly apportioned among each | ||||||
14 | percentage point value between 100% and 134% | ||||||
15 | achievement . | ||||||
16 | (9) The utility shall submit the energy savings data | ||||||
17 | to the independent evaluator no later than 30 days after | ||||||
18 | the close of the plan year. The independent evaluator | ||||||
19 | shall determine the cumulative persisting annual savings | ||||||
20 | for a given plan year , as well as an estimate of job | ||||||
21 | impacts and other macroeconomic impacts of the efficiency | ||||||
22 | programs for that year, no later than 120 days after the | ||||||
23 | close of the plan year. The utility shall submit an | ||||||
24 | informational filing to the Commission no later than 160 | ||||||
25 | days after the close of the plan year that attaches the | ||||||
26 | independent evaluator's final report identifying the |
| |||||||
| |||||||
1 | cumulative persisting annual savings for the year and | ||||||
2 | calculates, under paragraph (7) or (8) of this subsection | ||||||
3 | (g), as applicable, any resulting change to the utility's | ||||||
4 | return on equity component of the weighted average cost of | ||||||
5 | capital applicable to the next plan year beginning with | ||||||
6 | the January monthly billing period and extending through | ||||||
7 | the December monthly billing period. However, if the | ||||||
8 | utility recovers the costs incurred under this Section | ||||||
9 | under paragraphs (2) and (3) of subsection (d) of this | ||||||
10 | Section, then the utility shall not be required to submit | ||||||
11 | such informational filing, and shall instead submit the | ||||||
12 | information that would otherwise be included in the | ||||||
13 | informational filing as part of its filing under paragraph | ||||||
14 | (3) of such subsection (d) that is due on or before June 1 | ||||||
15 | of each year. | ||||||
16 | For those utilities that must submit the informational | ||||||
17 | filing, the Commission may, on its own motion or by | ||||||
18 | petition, initiate an investigation of such filing, | ||||||
19 | provided, however, that the utility's proposed return on | ||||||
20 | equity calculation shall be deemed the final, approved | ||||||
21 | calculation on December 15 of the year in which it is filed | ||||||
22 | unless the Commission enters an order on or before | ||||||
23 | December 15, after notice and hearing, that modifies such | ||||||
24 | calculation consistent with this Section. | ||||||
25 | The adjustments to the return on equity component | ||||||
26 | described in paragraphs (7) and (8) of this subsection (g) |
| |||||||
| |||||||
1 | shall be applied as described in such paragraphs through a | ||||||
2 | separate tariff mechanism, which shall be filed by the | ||||||
3 | utility under subsections (f) and (g) of this Section. | ||||||
4 | (9.5) The utility must demonstrate how it will ensure | ||||||
5 | that program implementation contractors and energy | ||||||
6 | efficiency installation vendors will meet multiple | ||||||
7 | workforce equity building criteria, including, but not | ||||||
8 | limited to: | ||||||
9 | (i) Ensuring that an amount of program portfolio | ||||||
10 | incentive funding proportional to the population of | ||||||
11 | BIPOC persons within the utility's territory, as | ||||||
12 | updated every 2 years, is administered or installed by | ||||||
13 | energy efficiency installation vendors who meet one of | ||||||
14 | the following criteria: | ||||||
15 | (aa) certified under Section 2 of the Business | ||||||
16 | Enterprise for Minorities, Women, and Persons with | ||||||
17 | Disabilities Act; or | ||||||
18 | (bb) certified by another municipal, state, | ||||||
19 | federal, or other certification for disadvantaged | ||||||
20 | businesses; or | ||||||
21 | (cc) submit an affidavit showing that the | ||||||
22 | vendor meets the eligibility criteria for a | ||||||
23 | certification program such as those in subdivision | ||||||
24 | (aa) or (bb); or | ||||||
25 | (dd) if the vendor is a nonprofit, meet any of | ||||||
26 | the criteria in subdivision (aa), (bb), or (cc) or |
| |||||||
| |||||||
1 | is controlled by a board of directors that | ||||||
2 | consists of 51% or greater individuals who are | ||||||
3 | minorities, women, or persons with a disability as | ||||||
4 | defined by the Business Enterprise for Minorities, | ||||||
5 | Women, and Persons with a Disability Act. | ||||||
6 | (ii) Ensuring that program implementation | ||||||
7 | contractors and energy efficiency installation vendors | ||||||
8 | pay employees working on energy efficiency programs at | ||||||
9 | or above the prevailing wage rate when such a wage rate | ||||||
10 | has been published by the Illinois Department of Labor | ||||||
11 | and pay employees working on energy efficiency | ||||||
12 | programs at or above the median wage rate for a similar | ||||||
13 | job description in the nearest metropolitan area when | ||||||
14 | there is no applicable published prevailing wage rate. | ||||||
15 | If necessary, utilities may conduct surveys to | ||||||
16 | establish the median wage rate for a given job | ||||||
17 | description. Utilities shall establish reporting | ||||||
18 | procedures for vendors that ensure compliance with | ||||||
19 | this subsection, but are structured to avoid, wherever | ||||||
20 | possible, placing an undue administrative burden on | ||||||
21 | vendors. | ||||||
22 | (iii) Ensuring that program implementation | ||||||
23 | contractor employees and energy efficiency | ||||||
24 | installation vendor employees are proportional to the | ||||||
25 | population of BIPOC persons, within the utility's | ||||||
26 | territory, as updated every 2 years. |
| |||||||
| |||||||
1 | (iv) Ensuring that 30% or more of the energy | ||||||
2 | efficiency installation vendor employees working for | ||||||
3 | vendors reporting to each program implementation | ||||||
4 | contractor are graduates of or trainees in the Clean | ||||||
5 | Energy Workforce Training Hubs programs, Returning | ||||||
6 | Residents Clean Jobs training programs, or similar | ||||||
7 | programs offering equivalent certifications. | ||||||
8 | (v) Ensuring that vendors who are very small | ||||||
9 | businesses of 5 or fewer full-time employees, | ||||||
10 | businesses that have completed or are participating in | ||||||
11 | the Expanding Clean Energy Entrepreneurship and | ||||||
12 | Contractor Incubator Network Program, and businesses | ||||||
13 | that have completed or are participating in the | ||||||
14 | Illinois Clean Energy Black, Indigenous, and People of | ||||||
15 | Color Primes Contractor Accelerator, receive a | ||||||
16 | substantial portion of program portfolio funding. | ||||||
17 | Utility plans to achieve this shall include efforts to | ||||||
18 | provide the necessary training and administrative | ||||||
19 | support needed for very small businesses to meet | ||||||
20 | utility-mandated training, certification, insurance, | ||||||
21 | and security-related contract requirements. | ||||||
22 | (9.6) Utilities shall collect data necessary to ensure | ||||||
23 | compliance with paragraph (9.5) no less than quarterly and | ||||||
24 | shall communicate progress toward compliance with | ||||||
25 | paragraph (9.5) to program implementation contractors and | ||||||
26 | energy efficiency installation vendors no less than |
| |||||||
| |||||||
1 | quarterly. When it seems unlikely that the criteria in | ||||||
2 | paragraph (9.5) will be met, utilities shall work with | ||||||
3 | relevant vendors, providing education, training, and other | ||||||
4 | resources needed to ensure compliance and, where | ||||||
5 | necessary, adjusting or terminating work with vendors that | ||||||
6 | cannot assist with compliance. | ||||||
7 | (10) Utilities required to implement efficiency | ||||||
8 | programs under subsections (b-5) and (b-10) shall report | ||||||
9 | annually to the Illinois Commerce Commission and the | ||||||
10 | General Assembly on how hiring, contracting, job training, | ||||||
11 | and other practices related to its energy efficiency | ||||||
12 | programs enhance the diversity of vendors working on such | ||||||
13 | programs. These reports must include data on vendor and | ||||||
14 | employee diversity, including data on the implementation | ||||||
15 | of paragraphs (9.5) and (9.6). If the utility is not | ||||||
16 | meeting the requirements of paragraphs (9.5) and (9.6), | ||||||
17 | the utility shall submit a plan to adjust their activities | ||||||
18 | so that they meet the requirements of paragraphs (9.5) and | ||||||
19 | (9.6) within the following year. | ||||||
20 | (h) No more than 6% of energy efficiency and | ||||||
21 | demand-response program revenue may be allocated for research, | ||||||
22 | development, or pilot deployment of new equipment or measures.
| ||||||
23 | (i) When practicable, electric utilities shall incorporate | ||||||
24 | advanced metering infrastructure data into the planning, | ||||||
25 | implementation, and evaluation of energy efficiency measures | ||||||
26 | and programs, subject to the data privacy and confidentiality |
| |||||||
| |||||||
1 | protections of applicable law. | ||||||
2 | (j) The independent evaluator shall follow the guidelines | ||||||
3 | and use the savings set forth in Commission-approved energy | ||||||
4 | efficiency policy manuals and technical reference manuals, as | ||||||
5 | each may be updated from time to time. Until such time as | ||||||
6 | measure life values for energy efficiency measures implemented | ||||||
7 | for low-income households under subsection (c) of this Section | ||||||
8 | are incorporated into such Commission-approved manuals, the | ||||||
9 | low-income measures shall have the same measure life values | ||||||
10 | that are established for same measures implemented in | ||||||
11 | households that are not low-income households. | ||||||
12 | (k) Notwithstanding any provision of law to the contrary, | ||||||
13 | an electric utility subject to the requirements of this | ||||||
14 | Section may file a tariff cancelling an automatic adjustment | ||||||
15 | clause tariff in effect under this Section or Section 8-103, | ||||||
16 | which shall take effect no later than one business day after | ||||||
17 | the date such tariff is filed. Thereafter, the utility shall | ||||||
18 | be authorized to defer and recover its expenditures incurred | ||||||
19 | under this Section through a new tariff authorized under | ||||||
20 | subsection (d) of this Section or in the utility's next rate | ||||||
21 | case under Article IX or Section 16-108.5 of this Act, with | ||||||
22 | interest at an annual rate equal to the utility's weighted | ||||||
23 | average cost of capital as approved by the Commission in such | ||||||
24 | case. If the utility elects to file a new tariff under | ||||||
25 | subsection (d) of this Section, the utility may file the | ||||||
26 | tariff within 10 days after June 1, 2017 (the effective date of |
| |||||||
| |||||||
1 | Public Act 99-906), and the cost inputs to such tariff shall be | ||||||
2 | based on the projected costs to be incurred by the utility | ||||||
3 | during the calendar year in which the new tariff is filed and | ||||||
4 | that were not recovered under the tariff that was cancelled as | ||||||
5 | provided for in this subsection. Such costs shall include | ||||||
6 | those incurred or to be incurred by the utility under its | ||||||
7 | multi-year plan approved under subsections (f) and (g) of this | ||||||
8 | Section, including, but not limited to, projected capital | ||||||
9 | investment costs and projected regulatory asset balances with | ||||||
10 | correspondingly updated depreciation and amortization reserves | ||||||
11 | and expense. The Commission shall, after notice and hearing, | ||||||
12 | approve, or approve with modification, such tariff and cost | ||||||
13 | inputs no later than 75 days after the utility filed the | ||||||
14 | tariff, provided that such approval, or approval with | ||||||
15 | modification, shall be consistent with the provisions of this | ||||||
16 | Section to the extent they do not conflict with this | ||||||
17 | subsection (k). The tariff approved by the Commission shall | ||||||
18 | take effect no later than 5 days after the Commission enters | ||||||
19 | its order approving the tariff. | ||||||
20 | No later than 60 days after the effective date of the | ||||||
21 | tariff cancelling the utility's automatic adjustment clause | ||||||
22 | tariff, the utility shall file a reconciliation that | ||||||
23 | reconciles the moneys collected under its automatic adjustment | ||||||
24 | clause tariff with the costs incurred during the period | ||||||
25 | beginning June 1, 2016 and ending on the date that the electric | ||||||
26 | utility's automatic adjustment clause tariff was cancelled. In |
| |||||||
| |||||||
1 | the event the reconciliation reflects an under-collection, the | ||||||
2 | utility shall recover the costs as specified in this | ||||||
3 | subsection (k). If the reconciliation reflects an | ||||||
4 | over-collection, the utility shall apply the amount of such | ||||||
5 | over-collection as a one-time credit to retail customers' | ||||||
6 | bills. | ||||||
7 | (l) (Blank). For the calendar years covered by a | ||||||
8 | multi-year plan commencing after December 31, 2017, | ||||||
9 | subsections (a) through (j) of this Section do not apply to any | ||||||
10 | retail customers of an electric utility that serves more than | ||||||
11 | 3,000,000 retail customers in the State and whose total | ||||||
12 | highest 30 minute demand was more than 10,000 kilowatts, or | ||||||
13 | any retail customers of an electric utility that serves less | ||||||
14 | than 3,000,000 retail customers but more than 500,000 retail | ||||||
15 | customers in the State and whose total highest 15 minute | ||||||
16 | demand was more than 10,000 kilowatts. For purposes of this | ||||||
17 | subsection (l), "retail customer" has the meaning set forth in | ||||||
18 | Section 16-102 of this Act. A determination of whether this | ||||||
19 | subsection is applicable to a customer shall be made for each | ||||||
20 | multi-year plan beginning after December 31, 2017. The | ||||||
21 | criteria for determining whether this subsection (l) is | ||||||
22 | applicable to a retail customer shall be based on the 12 | ||||||
23 | consecutive billing periods prior to the start of the first | ||||||
24 | year of each such multi-year plan. | ||||||
25 | (m) Notwithstanding the requirements of this Section, as | ||||||
26 | part of a proceeding to approve a multi-year plan under |
| |||||||
| |||||||
1 | subsections (f) and (g) of this Section if the multi-year plan | ||||||
2 | has been designed to maximize savings, but does not meet the | ||||||
3 | cost cap limitations of this subsection , the Commission shall | ||||||
4 | reduce the amount of energy efficiency measures implemented | ||||||
5 | for any single year, and whose costs are recovered under | ||||||
6 | subsection (d) of this Section, by an amount necessary to | ||||||
7 | limit the estimated average net increase due to the cost of the | ||||||
8 | measures to no more than | ||||||
9 | (1) 3.5% for each of the 4 years beginning January 1, | ||||||
10 | 2018, | ||||||
11 | (2) (blank), 3.75% for each of the 4 years beginning | ||||||
12 | January 1, 2022, and | ||||||
13 | (3) 4% for each of the 4 5 years beginning January 1, | ||||||
14 | 2022 2026 , | ||||||
15 | (4) 4.25% for the 4 years beginning January 1, 2026, | ||||||
16 | and | ||||||
17 | (5) 4.25% plus an increase sufficient to account for | ||||||
18 | the rate of inflation between January 1, 2026 and January | ||||||
19 | 1 of the first year of each subsequent 4-year plan cycle, | ||||||
20 | of the average amount paid per kilowatthour by residential | ||||||
21 | eligible retail customers during calendar year 2015. An | ||||||
22 | electric utility may plan to spend up to 10% more in any year | ||||||
23 | during an applicable multi-year plan period to | ||||||
24 | cost-effectively achieve additional savings so long as the | ||||||
25 | average over the applicable multi-year plan period does not | ||||||
26 | exceed the percentages defined in items (1) through (5). To |
| |||||||
| |||||||
1 | determine the total amount that may be spent by an electric | ||||||
2 | utility in any single year, the applicable percentage of the | ||||||
3 | average amount paid per kilowatthour shall be multiplied by | ||||||
4 | the total amount of energy delivered by such electric utility | ||||||
5 | in the calendar year 2015, adjusted to reflect the proportion | ||||||
6 | of the utility's load attributable to customers who are exempt | ||||||
7 | from subsections (a) through (j) of this Section under | ||||||
8 | subsection (l) of this Section . For purposes of this | ||||||
9 | subsection (m), the amount paid per kilowatthour includes,
| ||||||
10 | without limitation, estimated amounts paid for supply,
| ||||||
11 | transmission, distribution, surcharges, and add-on taxes. For | ||||||
12 | purposes of this Section, "eligible retail customers" shall | ||||||
13 | have the meaning set forth in Section 16-111.5 of this Act. | ||||||
14 | Once the Commission has approved a plan under subsections (f) | ||||||
15 | and (g) of this Section, no subsequent rate impact | ||||||
16 | determinations shall be made.
| ||||||
17 | (Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.) | ||||||
18 | (220 ILCS 5/8-104.1 new) | ||||||
19 | Sec. 8-104.1. Gas utilities; annual savings goals. | ||||||
20 | (a) It is the policy of the State that gas utilities are | ||||||
21 | required to use cost-effective energy efficiency to reduce | ||||||
22 | delivery load. Requiring investment in cost-effective energy | ||||||
23 | efficiency will reduce direct and indirect costs to consumers | ||||||
24 | by decreasing environmental impacts and by reducing the amount | ||||||
25 | of natural gas that needs to be purchased and avoiding or |
| |||||||
| |||||||
1 | delaying the need for new transmission, distribution, storage | ||||||
2 | and other related infrastructure. It serves the public | ||||||
3 | interest to allow gas utilities to recover costs for | ||||||
4 | reasonably and prudently incurred expenditures for energy | ||||||
5 | efficiency measures. | ||||||
6 | (b) In this Section: | ||||||
7 | "Cost-effective" means that the measures satisfy the total | ||||||
8 | resource cost test that, for purposes of this Section, means a | ||||||
9 | standard that is met if, for an investment in energy | ||||||
10 | efficiency, the benefit-cost ratio is greater than one. The | ||||||
11 | benefit-cost ratio is the ratio of the net present value of the | ||||||
12 | total benefits of the measures to the net present value of the | ||||||
13 | total costs as calculated over the lifetime of the measures. | ||||||
14 | The total resource cost test compares the sum of avoided | ||||||
15 | natural gas utility costs, representing the benefits that | ||||||
16 | accrue to the natural gas system and the participant in the | ||||||
17 | delivery of those efficiency measures and including avoided | ||||||
18 | costs associated with the use of electricity or other fuels, | ||||||
19 | avoided cost associated with reduced water consumption, and | ||||||
20 | avoided costs associated with reduced operation and | ||||||
21 | maintenance costs, as well as other quantifiable societal | ||||||
22 | benefits, to the sum of all incremental costs of end-use | ||||||
23 | measures (including both utility and participant | ||||||
24 | contributions), plus costs to administer, deliver, and | ||||||
25 | evaluate each demand-side measure, to quantify the net savings | ||||||
26 | obtained by substituting demand-side measures for supply |
| |||||||
| |||||||
1 | resources. In calculating avoided costs, reasonable estimates | ||||||
2 | shall be included for financial costs likely to be imposed by | ||||||
3 | future regulation of emissions of greenhouse gases. In | ||||||
4 | discounting future societal costs and benefits for the purpose | ||||||
5 | of calculating net present values, a societal discount rate | ||||||
6 | based on actual, long-term Treasury bond yields shall be used. | ||||||
7 | The low-income measures described in subsection (f) of this | ||||||
8 | Section shall not be required to meet the total resource cost | ||||||
9 | test. | ||||||
10 | "Cumulative persisting annual savings" means the total gas | ||||||
11 | energy savings in a given year from measures installed in that | ||||||
12 | year or in previous years, but no earlier than January 1, 2022, | ||||||
13 | that are still operational and providing savings in that year | ||||||
14 | because the measures have not yet reached the end of their | ||||||
15 | useful lives. | ||||||
16 | "Energy efficiency" means measures that reduce the amount | ||||||
17 | of energy required to achieve a given end use. "Energy | ||||||
18 | efficiency" also includes measures that reduce the total Btus | ||||||
19 | of electricity and natural gas needed to meet the end use or | ||||||
20 | uses. "Black, indigenous, and people of color" and "BIPOC" | ||||||
21 | means people who are members of the groups described in | ||||||
22 | subparagraphs (a) through (e) of paragraph (A) of subsection | ||||||
23 | (1) of Section 2 of the Business Enterprise for Minorities, | ||||||
24 | Women, and Persons with Disabilities Act. "Expanding Clean | ||||||
25 | Energy Entrepreneurship and Contractor Incubator Network | ||||||
26 | Program," "Clean Energy Black, Indigenous, and People of Color |
| |||||||
| |||||||
1 | Primes Contractor Accelerator," "Returning Resident Clean | ||||||
2 | Energy Training Program," and "Clean Energy Workforce Training | ||||||
3 | Hubs Program" are as set forth in the Clean Jobs, Workforce and | ||||||
4 | Contractor Equity Act. | ||||||
5 | (c) This Section applies to all gas distribution utilities | ||||||
6 | in the State for those multi-year plans that include energy | ||||||
7 | efficiency programs commencing after December 31, 2022. | ||||||
8 | (d) Beginning in 2023, gas utilities subject to this | ||||||
9 | Section shall achieve the following cumulative persisting | ||||||
10 | annual savings goals, as compared to a deemed baseline | ||||||
11 | equivalent to the utility's average annual therm throughput in | ||||||
12 | 2016 through 2020 through the implementation of energy | ||||||
13 | efficiency measures during the applicable year and in prior | ||||||
14 | years, but no earlier than January 1, 2023: | ||||||
15 | (1) 1.2% cumulative persisting annual savings for the | ||||||
16 | year ending December 31, 2023; | ||||||
17 | (2) 2.1% cumulative persisting annual savings for the | ||||||
18 | year ending December 31, 2024; | ||||||
19 | (3) 3.0% cumulative persisting annual savings for the | ||||||
20 | year ending December 31, 2025; | ||||||
21 | (4) 3.9% cumulative persisting annual savings for the | ||||||
22 | year ending December 31, 2026; | ||||||
23 | (5) 4.8% cumulative persisting annual savings for the | ||||||
24 | year ending December 31, 2027; | ||||||
25 | (6) 5.7% cumulative persisting annual savings for the | ||||||
26 | year ending December 31, 2028; |
| |||||||
| |||||||
1 | (7) 6.6% cumulative persisting annual savings for the | ||||||
2 | year ending December 31, 2029; | ||||||
3 | (8) 7.4% cumulative persisting annual savings for the | ||||||
4 | year ending December 31, 2030; | ||||||
5 | (9) 8.2% cumulative persisting annual savings for the | ||||||
6 | year ending December 31, 2031; | ||||||
7 | (10) 9.0% cumulative persisting annual savings for the | ||||||
8 | year ending December 31, 2032; | ||||||
9 | (11) 9.8% cumulative persisting annual savings for the | ||||||
10 | year ending December 31, 2033; | ||||||
11 | (12) 10.6% cumulative persisting annual savings for | ||||||
12 | the year ending December 31, 2034; | ||||||
13 | (13) 11.4% cumulative persisting annual savings for | ||||||
14 | the year ending December 31, 2035; | ||||||
15 | (14) 12.1% cumulative persisting annual savings for | ||||||
16 | the year ending December 31, 2036; and | ||||||
17 | (15) 12.8% cumulative persisting annual savings for | ||||||
18 | the year ending December 31, 2037. | ||||||
19 | No later than December 31, 2025, the Illinois Commerce | ||||||
20 | Commission shall establish additional cumulative persisting | ||||||
21 | annual savings goals for the years 2037 through 2041. The | ||||||
22 | Commission shall also establish additional cumulative | ||||||
23 | persisting annual savings goals every 5 years thereafter to | ||||||
24 | ensure utilities always have goals that extend at least 11 | ||||||
25 | years into the future. The cumulative persisting annual | ||||||
26 | savings goals beyond the year 2035 shall increase by 0.6 |
| |||||||
| |||||||
1 | percentage points per year absent a Commission decision to | ||||||
2 | initiate a proceeding to consider establishing goals that | ||||||
3 | increase by more or less than that amount. Such a proceeding | ||||||
4 | must be conducted in accordance with the procedures described | ||||||
5 | in subsection (f) of this Section. If such a proceeding is | ||||||
6 | initiated, the cumulative persisting annual savings goals | ||||||
7 | established by the Commission through that proceeding shall | ||||||
8 | reflect the Commission's best estimate of the maximum amount | ||||||
9 | of additional gas savings that are forecast to be | ||||||
10 | cost-effectively achievable unless such best estimates would | ||||||
11 | result in goals that represent less than 0.4 percentage point | ||||||
12 | annual increases in total cumulative persisting annual | ||||||
13 | savings. The Commission may only establish goals that | ||||||
14 | represent less than 0.4 percentage point annual increases in | ||||||
15 | cumulative persisting annual savings if it can demonstrate, | ||||||
16 | based on clear and convincing evidence, that 0.4 percentage | ||||||
17 | point increases are not cost-effectively achievable. The | ||||||
18 | Commission shall inform its decision based on an energy | ||||||
19 | efficiency potential study that conforms to the requirements | ||||||
20 | of subsection (j-5) of this Section. | ||||||
21 | (e) If a gas utility jointly offers an energy efficiency | ||||||
22 | measure or program with an electric utility under plans | ||||||
23 | approved under this Section and Section 8-103B of this Act, | ||||||
24 | the gas utility may continue offering the program, including | ||||||
25 | the electric energy efficiency measures, if the electric | ||||||
26 | utility discontinues funding the program. In that event, the |
| |||||||
| |||||||
1 | energy-savings value associated with such other fuels shall be | ||||||
2 | converted to gas energy savings on an equivalent Btu basis for | ||||||
3 | the premises. However, the gas utility shall prioritize | ||||||
4 | programs for low-income residential customers to the extent | ||||||
5 | practicable. A gas utility may recover the costs of offering | ||||||
6 | the gas energy efficiency measures under this subsection (e). | ||||||
7 | For those energy efficiency measures or programs that save | ||||||
8 | both gas and other fuels but are not jointly offered with an | ||||||
9 | electric utility under plans approved under this Section and | ||||||
10 | Section 8-103B, the gas utility may count savings of fuels | ||||||
11 | other than gas toward the achievement of its annual savings | ||||||
12 | goal, and the energy-savings value associated with such other | ||||||
13 | fuels shall be converted to gas energy savings on an | ||||||
14 | equivalent Btu basis at the premises. | ||||||
15 | In no event shall more than 10% of each year's applicable | ||||||
16 | annual total savings requirement as defined in paragraph (8) | ||||||
17 | of subsection (j) of this Section be met through savings of | ||||||
18 | fuels other than gas. | ||||||
19 | (f) Gas utilities are responsible for overseeing the | ||||||
20 | design, development, and filing of energy efficiency plans | ||||||
21 | with the Commission and may, as part of that implementation, | ||||||
22 | outsource various aspects of program development and | ||||||
23 | implementation. A minimum of 10% of the utility's entire | ||||||
24 | portfolio funding level for a given year shall be used to | ||||||
25 | procure cost-effective energy efficiency measures from units | ||||||
26 | of local government, municipal corporations, school districts, |
| |||||||
| |||||||
1 | public housing, community college districts, and | ||||||
2 | nonprofit-owned buildings provided that a minimum percentage | ||||||
3 | of available funds shall be used to procure energy efficiency | ||||||
4 | from public housing, which percentage shall be equal to public | ||||||
5 | housing's share of public building energy consumption. | ||||||
6 | The utilities shall also implement energy efficiency | ||||||
7 | measures targeted at low-income single-family and multifamily | ||||||
8 | households, which, as used in this Section, means households | ||||||
9 | at or below 80% of area median income, and expenditures to | ||||||
10 | implement the measures shall be no less than 25% of the | ||||||
11 | utility's total efficiency portfolio budget. | ||||||
12 | At least 70% of spending on programs targeted at | ||||||
13 | low-income households shall go toward integrated whole | ||||||
14 | building efficiency programs, as defined in subsection (g), or | ||||||
15 | individual measures that reduce space heating needs through | ||||||
16 | improvements to the building envelope, heating distribution | ||||||
17 | systems, or heating system controls. In implementing these | ||||||
18 | programs, utilities shall ensure that thermal insulating | ||||||
19 | materials used in the building envelope do not contain any | ||||||
20 | substance that is a Category 1 respiratory sensitizer as | ||||||
21 | defined by Appendix A to 29 CFR 1910.1200 (Health Hazard | ||||||
22 | Criteria: A.4 Respiratory or Skin Sensitization) that was | ||||||
23 | intentionally added or is present at greater than 0.1% (1000 | ||||||
24 | ppm) by weight in the product. Programs targeted at low-income | ||||||
25 | households, which address single-family and multifamily | ||||||
26 | buildings shall be treated such that forecast savings to be |
| |||||||
| |||||||
1 | achieved in each building type are approximately in | ||||||
2 | proportional to the magnitude of cost-effective energy | ||||||
3 | efficiency opportunities in these respective building types. | ||||||
4 | Each gas utility shall assess opportunities to implement | ||||||
5 | cost-effective energy efficiency measures and programs through | ||||||
6 | a public-housing authority or authorities located in its | ||||||
7 | service territory. If such opportunities are identified, the | ||||||
8 | utility shall propose such measures and programs to address | ||||||
9 | the opportunities. Expenditures to address such opportunities | ||||||
10 | shall be credited toward the minimum procurement and | ||||||
11 | expenditure requirements set forth in this subsection (f). | ||||||
12 | Implementation of energy efficiency measures and programs | ||||||
13 | targeted at low-income households shall be contracted, when it | ||||||
14 | is practical, to independent third parties that have | ||||||
15 | demonstrated capabilities to serve such households, with a | ||||||
16 | preference for not-for-profit entities and government agencies | ||||||
17 | that have existing relationships with or experience serving | ||||||
18 | low-income communities in the State. | ||||||
19 | Each gas utility shall develop and implement reporting | ||||||
20 | procedures that address and assist in determining the amount | ||||||
21 | of energy savings that can be applied to the low-income | ||||||
22 | procurement and expenditure requirements set forth in this | ||||||
23 | subsection (f). Each gas utility shall also track the types | ||||||
24 | and quantities or volumes of insulation and air sealing | ||||||
25 | materials, and their associated energy saving benefits, | ||||||
26 | installed in energy efficiency programs targeted at low-income |
| |||||||
| |||||||
1 | single-family and multifamily households. | ||||||
2 | Each gas utility shall implement a health and safety fund | ||||||
3 | of a minimum of 0.5% of the utility's entire portfolio funding | ||||||
4 | level for a given year, that shall be used for the purpose of | ||||||
5 | making grants for technical assistance, construction, | ||||||
6 | reconstruction, improvement, or repair of buildings to | ||||||
7 | facilitate their participation in the energy efficiency | ||||||
8 | programs targeted at low-income single-family and multifamily | ||||||
9 | households. These funds may also be used for the purpose of | ||||||
10 | making grants for technical assistance, construction, | ||||||
11 | reconstruction, improvement, or repair of the following | ||||||
12 | buildings to facilitate their participation in the energy | ||||||
13 | efficiency programs created by this Section: (1) buildings | ||||||
14 | that are owned or operated by registered 501(c)(3) public | ||||||
15 | charities; and (2) day care centers, day care homes, or group | ||||||
16 | day care homes, as defined by 89 Ill. Adm. Code Part 406, 407, | ||||||
17 | or 408, respectively. | ||||||
18 | The gas utilities shall participate in a low-income energy | ||||||
19 | efficiency accountability committee ("the committee"), which | ||||||
20 | will directly inform the design, implementation, and | ||||||
21 | evaluation of the low-income and public-housing energy | ||||||
22 | efficiency programs. The committee shall be composed of the | ||||||
23 | electric utilities subject to the requirements of Section | ||||||
24 | 8-103B of this Act, the gas utilities subject to the | ||||||
25 | requirements of this Section, the utilities' low-income energy | ||||||
26 | efficiency implementation contractors, nonprofit |
| |||||||
| |||||||
1 | organizations, community action agencies, advocacy groups, | ||||||
2 | State and local governmental agencies, public-housing | ||||||
3 | organizations, and representatives of community-based | ||||||
4 | organizations, especially those living in or working with | ||||||
5 | environmental justice communities and BIPOC communities. The | ||||||
6 | committee shall be composed of a statewide leadership | ||||||
7 | committee and 2 geographically differentiated subcommittees: | ||||||
8 | one for stakeholders in northern Illinois and one for | ||||||
9 | stakeholders in central and southern Illinois. The | ||||||
10 | subcommittees shall meet together at least twice per year. | ||||||
11 | There shall be a statewide leadership committee led by and | ||||||
12 | composed of community-based organizations that are | ||||||
13 | representative of BIPOC and environmental justice communities | ||||||
14 | and that includes equitable representation from BIPOC | ||||||
15 | communities. The leadership committee shall be composed of an | ||||||
16 | equal number of representatives from the 2 subcommittees. | ||||||
17 | The subcommittees shall address specific programs and | ||||||
18 | issues, with the leadership committee convening targeted | ||||||
19 | workgroups as needed. The leadership committee may elect to | ||||||
20 | work with an independent facilitator to solicit and organize | ||||||
21 | feedback, recommendations and meeting participation from a | ||||||
22 | wide variety of community-based stakeholders. If a facilitator | ||||||
23 | is used, they shall be fair and responsive to the needs of all | ||||||
24 | stakeholders involved in the committee. | ||||||
25 | All committee meetings must be accessible, with rotating | ||||||
26 | locations if meetings are held in-person, virtual |
| |||||||
| |||||||
1 | participation options, and materials and agendas circulated | ||||||
2 | well in advance. | ||||||
3 | There shall also be opportunities for direct input by | ||||||
4 | committee members outside of committee meetings, such as via | ||||||
5 | individual meetings, surveys, emails and calls, to ensure | ||||||
6 | robust participation by stakeholders with limited capacity and | ||||||
7 | ability to attend committee meetings. Committee meetings shall | ||||||
8 | emphasize opportunities to bundle and coordinate delivery of | ||||||
9 | low-income energy efficiency with other programs that serve | ||||||
10 | low-income communities, such as Solar for All and bill payment | ||||||
11 | assistance programs. Meetings shall include educational | ||||||
12 | opportunities for stakeholders to learn more about these | ||||||
13 | additional offerings, and the committee shall assist in | ||||||
14 | figuring out the best methods for coordinated delivery and | ||||||
15 | implementation of offerings when serving low-income | ||||||
16 | communities. The committee shall directly and equitably | ||||||
17 | influence and inform utility low-income and public-housing | ||||||
18 | energy efficiency programs and priorities. | ||||||
19 | Participating utilities shall implement recommendations | ||||||
20 | from the committee whenever possible.
Participating utilities | ||||||
21 | shall track and report how input from the committee has led to | ||||||
22 | new approaches and changes in their energy efficiency | ||||||
23 | portfolios. This reporting shall occur at committee meetings | ||||||
24 | and in quarterly energy efficiency reports to the Stakeholder | ||||||
25 | Advisory Group and Illinois Commerce Commission, and other | ||||||
26 | relevant reporting mechanisms. Participating utilities shall |
| |||||||
| |||||||
1 | also report on relevant equity data and metrics requested by | ||||||
2 | the committee, such as energy burden data, geographic, racial, | ||||||
3 | and other relevant demographic data on where programs are | ||||||
4 | being delivered and what populations programs are serving. | ||||||
5 | The Illinois Commerce Commission shall oversee and have | ||||||
6 | relevant staff participate in the committee. The committee | ||||||
7 | shall have a budget of 0.25% of each utility's entire | ||||||
8 | efficiency portfolio funding for a given year. The budget | ||||||
9 | shall be overseen by the Commission. The budget shall be used | ||||||
10 | to provide grants for community-based organizations serving on | ||||||
11 | the leadership committee, stipends for community-based | ||||||
12 | organizations participating in the committee, grants for | ||||||
13 | community-based organizations to do energy efficiency outreach | ||||||
14 | and education, and relevant meeting needs as determined by the | ||||||
15 | leadership committee. The education and outreach shall | ||||||
16 | include, but is not limited to, basic energy efficiency | ||||||
17 | education, information about low-income energy efficiency | ||||||
18 | programs, and information on the committee's purpose, | ||||||
19 | structure, and activities. | ||||||
20 | (g) At least 50% of the entire efficiency program | ||||||
21 | portfolio budget shall be spent on any combination of (1) | ||||||
22 | heating energy savings from integrated, residential or | ||||||
23 | nonresidential, new or existing whole building efficiency | ||||||
24 | programs; and (2) individual heating measures in residential | ||||||
25 | or nonresidential buildings, new or existing, that reduce the | ||||||
26 | amount of space heating needs through improvements to the |
| |||||||
| |||||||
1 | efficiency of building envelopes (including, but not limited | ||||||
2 | to, insulation measures, efficient windows and air leakage | ||||||
3 | reduction), improvements to systems for distributing heat | ||||||
4 | (including, but not limited to, duct leakage reduction, duct | ||||||
5 | insulation or pipe insulation) in buildings, improvements to | ||||||
6 | ventilation systems (including, but not limited to heat | ||||||
7 | recovery ventilation and demand control ventilation measures) | ||||||
8 | or improvements to controls of heating equipment (including, | ||||||
9 | but not limited to, advanced thermostats). Spending on | ||||||
10 | efficient furnaces, efficient boilers, or other efficient | ||||||
11 | heating equipment measures outside of or separate from | ||||||
12 | integrated whole building efficiency programs is permitted | ||||||
13 | within the efficiency program portfolio, but does not count | ||||||
14 | toward the minimum spending requirement in this subsection | ||||||
15 | (g). Spending on integrated whole building efficiency programs | ||||||
16 | targeted to low-income customers, as well as spending on | ||||||
17 | individual building envelope, heating distribution system, | ||||||
18 | ventilation system and heating system control measures | ||||||
19 | installed in low-income homes does count toward this | ||||||
20 | requirement. The portion of portfolio spending on program | ||||||
21 | marketing, training of installers, audits of buildings, | ||||||
22 | inspections of work performed, and other administrative and | ||||||
23 | technical expenses that are clearly tied to promotion and | ||||||
24 | delivery of integrated whole building efficiency programs or | ||||||
25 | installation of individual building envelope, heating | ||||||
26 | distribution system, ventilation system or heating system |
| |||||||
| |||||||
1 | control measures shall count toward this requirement. If this | ||||||
2 | minimum requirement is not met, any performance incentive | ||||||
3 | earned under paragraph (7) of subsection (j) should be reduced | ||||||
4 | by the percentage point level of shortfall in meeting this | ||||||
5 | requirement; if the utility is subject to a performance | ||||||
6 | penalty, then the magnitude of the penalty shall be increased | ||||||
7 | by the percentage point shortfall in meeting this requirement. | ||||||
8 | As used in this subsection (g), "integrated whole building | ||||||
9 | efficiency programs" means programs designed to optimize the | ||||||
10 | heating efficiency of buildings by comprehensively and | ||||||
11 | simultaneously addressing cost-effective energy-savings | ||||||
12 | opportunities associated with heating equipment, heating | ||||||
13 | distribution systems, heating system controls, ventilation | ||||||
14 | systems and building envelopes; such programs may be targeted | ||||||
15 | to existing buildings or to construction of new buildings. | ||||||
16 | (h) Notwithstanding any other provision of law to the | ||||||
17 | contrary, a utility providing approved energy efficiency | ||||||
18 | measures in the State shall be permitted to recover all | ||||||
19 | reasonable and prudently incurred costs of those measures from | ||||||
20 | all distribution system customers, provided that nothing in | ||||||
21 | this subsection (h) permits the double recovery of such costs | ||||||
22 | from customers. | ||||||
23 | (i) Beginning in 2022, each gas utility shall file an | ||||||
24 | energy efficiency plan with the Commission to meet the energy | ||||||
25 | efficiency standards for the next applicable multi-year period | ||||||
26 | beginning January 1 of the year following the filing, |
| |||||||
| |||||||
1 | according to the schedule set forth in paragraphs (1) through | ||||||
2 | (5) of this subsection (i). If a utility does not file such a | ||||||
3 | plan on or before the applicable filing deadline for the plan, | ||||||
4 | it shall face a penalty of $100,000 per day until the plan is | ||||||
5 | filed. | ||||||
6 | (1) No later March 1, 2022, each gas utility shall | ||||||
7 | file a 3-year energy efficiency plan commencing on January | ||||||
8 | 1, 2023 that is designed to achieve the cumulative | ||||||
9 | persisting annual savings goals specified in paragraphs | ||||||
10 | (1) through (3) of subsection (d) of this Section through | ||||||
11 | implementation of energy efficiency measures; however, the | ||||||
12 | goals may be reduced if the plan's analysis and forecasts | ||||||
13 | of the utility's ability to acquire energy savings | ||||||
14 | demonstrate beyond a reasonable doubt that achievement of | ||||||
15 | such goals is not cost-effective. Annual increases in | ||||||
16 | cumulative persisting annual savings goals during the | ||||||
17 | applicable 3-year plan period shall not be reduced to | ||||||
18 | amounts that are less than the maximum amount of | ||||||
19 | cumulative persisting annual savings that is forecast to | ||||||
20 | be cost-effectively achievable during the 3-year plan | ||||||
21 | period. The Commission shall review any proposed goal | ||||||
22 | reduction as part of its review and approval of the | ||||||
23 | utility's proposed plan, taking into account the results | ||||||
24 | of the potential study required by subsection (j-5) of | ||||||
25 | this Section. | ||||||
26 | (2) No later than March 1, 2025, each gas utility |
| |||||||
| |||||||
1 | shall file a 4-year energy efficiency plan commencing on | ||||||
2 | January 1, 2026 that is designed to achieve the cumulative | ||||||
3 | persisting annual savings goals specified in paragraphs | ||||||
4 | (4) through (7) of subsection (d) of this Section through | ||||||
5 | implementation of energy efficiency measures; however, the | ||||||
6 | goals may be reduced if each of the following conditions | ||||||
7 | are met: (A) the plan's analysis and forecasts of the | ||||||
8 | utility's ability to acquire energy savings demonstrate | ||||||
9 | beyond a reasonable doubt that achievement of such goals | ||||||
10 | is not cost-effective; and (B) the amount of energy | ||||||
11 | savings achieved by the utility as determined by the | ||||||
12 | independent evaluator for the most recent year for which | ||||||
13 | savings have been evaluated preceding the plan filing was | ||||||
14 | less than the average annual amount of savings required to | ||||||
15 | achieve the goals for the applicable 4-year plan period. | ||||||
16 | Annual increases in cumulative persisting annual savings | ||||||
17 | goals during the applicable 4-year plan period shall not | ||||||
18 | be reduced to amounts that are less than the maximum | ||||||
19 | amount of cumulative persisting annual savings that is | ||||||
20 | forecast to be cost-effectively achievable during the | ||||||
21 | 4-year plan period. The Commission shall review any | ||||||
22 | proposed goal reduction as part of its review and approval | ||||||
23 | of the utility's proposed plan, taking into account the | ||||||
24 | results of the potential study required by subsection | ||||||
25 | (j-5) of this Section. | ||||||
26 | (3) No later than March 1, 2029, each gas utility |
| |||||||
| |||||||
1 | shall file a 4-year energy efficiency plan commencing on | ||||||
2 | January 1, 2030 that is designed to achieve the cumulative | ||||||
3 | persisting annual savings goals specified in paragraphs | ||||||
4 | (8) through (11) of subsection (d) of this Section through | ||||||
5 | implementation of energy efficiency measures; however, the | ||||||
6 | goals may be reduced if each of the following conditions | ||||||
7 | are met: (A) the plan's analysis and forecasts of the | ||||||
8 | utility's ability to acquire energy savings demonstrate | ||||||
9 | beyond a reasonable doubt that achievement of such goals | ||||||
10 | is not cost-effective; and (B) the amount of energy | ||||||
11 | savings achieved by the utility as determined by the | ||||||
12 | independent evaluator for the most recent year for which | ||||||
13 | savings have been evaluated preceding the plan filing was | ||||||
14 | less than the average annual amount of savings required to | ||||||
15 | achieve the goals for the applicable 4-year plan period. | ||||||
16 | Annual increases in cumulative persisting annual savings | ||||||
17 | goals during the applicable 4-year plan period shall not | ||||||
18 | be reduced to amounts that are less than the maximum | ||||||
19 | amount of cumulative persisting annual savings that is | ||||||
20 | forecast to be cost-effectively achievable during the | ||||||
21 | 4-year plan period. The Commission shall review any | ||||||
22 | proposed goal reduction as part of its review and approval | ||||||
23 | of the utility's proposed plan, taking into account the | ||||||
24 | results of the potential study required by subsection | ||||||
25 | (j-5) of this Section. | ||||||
26 | (4) No later than March 1, beginning in 2033 and each 4 |
| |||||||
| |||||||
1 | years thereafter, each gas utility shall file a 4-year | ||||||
2 | energy efficiency plan commencing on January 1, beginning | ||||||
3 | in 2034 and each 4-year period thereafter, that is | ||||||
4 | designed to achieve the cumulative persisting annual | ||||||
5 | savings goals specified in paragraphs (12) through (15) of | ||||||
6 | subsection (d), as well as goals for subsequent years that | ||||||
7 | are established by the Illinois Commerce Commission | ||||||
8 | pursuant to direction of subsection (d) of this Section, | ||||||
9 | through implementation of energy efficiency measures; | ||||||
10 | however, the goals may be reduced if each of the following | ||||||
11 | conditions are met: (A) the plan's analysis and forecasts | ||||||
12 | of the utility's ability to acquire energy savings | ||||||
13 | demonstrate beyond a reasonable doubt that achievement of | ||||||
14 | such goals is not cost-effective; and (B) the amount of | ||||||
15 | energy savings achieved by the utility as determined by | ||||||
16 | the independent evaluator for the most recent year for | ||||||
17 | which savings have been evaluated preceding the plan | ||||||
18 | filing was less than the average annual amount of savings | ||||||
19 | required to achieve the goals for the applicable 4-year | ||||||
20 | plan period. Annual increases in cumulative persisting | ||||||
21 | annual savings goals during the applicable 4-year plan | ||||||
22 | period shall not be reduced to amounts that are less than | ||||||
23 | the maximum amount of cumulative persisting annual savings | ||||||
24 | that is forecast to be cost-effectively achievable during | ||||||
25 | the 4-year plan period. The Commission shall review any | ||||||
26 | proposed goal reduction as part of its review and approval |
| |||||||
| |||||||
1 | of the utility's proposed plan, taking into account the | ||||||
2 | results of the potential study required by subsection | ||||||
3 | (j-5) of this Section. | ||||||
4 | Each utility's plan shall set forth the utility's | ||||||
5 | proposals to meet the energy efficiency standards identified | ||||||
6 | in subsection (d). The Commission shall seek public comment on | ||||||
7 | the utility's plan and shall issue an order approving or | ||||||
8 | disapproving each plan within 6 months after its submission. | ||||||
9 | If the Commission disapproves a plan, the Commission shall, | ||||||
10 | within 30 days, describe in detail the reasons for the | ||||||
11 | disapproval and describe a path by which the utility may file a | ||||||
12 | revised draft of the plan to address the Commission's concerns | ||||||
13 | satisfactorily. If the utility does not refile with the | ||||||
14 | Commission within 60 days, the utility shall be subject to | ||||||
15 | penalties at a rate of $100,000 per day until the plan is | ||||||
16 | filed. This process shall continue, and penalties shall | ||||||
17 | accrue, until the utility has successfully filed a portfolio | ||||||
18 | of energy efficiency measures. Penalties shall be deposited | ||||||
19 | into the Energy Efficiency Trust Fund. | ||||||
20 | (j) In submitting proposed plans and funding levels under | ||||||
21 | subsection (i) of this Section to meet the savings goals | ||||||
22 | identified in subsection (d), the utility shall: | ||||||
23 | (1) Demonstrate that its proposed energy efficiency | ||||||
24 | measures will achieve the applicable requirements that are | ||||||
25 | identified in subsection (d) of this Section. | ||||||
26 | (2) Demonstrate consideration of program options for |
| |||||||
| |||||||
1 | (A) advancing new building codes, appliance standards, and | ||||||
2 | municipal regulations governing existing and new building | ||||||
3 | efficiency improvements and (B) supporting efforts to | ||||||
4 | improve compliance with new building codes, appliance | ||||||
5 | standards and municipal regulations, as potentially | ||||||
6 | cost-effective means of acquiring energy savings to count | ||||||
7 | toward savings goals. | ||||||
8 | (3) Demonstrate that its overall portfolio of | ||||||
9 | measures, not including low-income programs described in | ||||||
10 | subsection (f) of this Section, is cost-effective using | ||||||
11 | the total resource cost test, complies with subsection (i) | ||||||
12 | of this Section and represents a diverse cross-section of | ||||||
13 | opportunities for customers of all rate classes, to | ||||||
14 | participate in the programs. Individual measures need not | ||||||
15 | be cost-effective. | ||||||
16 | (3.5) Demonstrate that the utility's plan integrates | ||||||
17 | the delivery of energy efficiency programs with electric | ||||||
18 | efficiency programs and other efforts to address bill | ||||||
19 | payment issues, including, but not limited to, LIHEAP and | ||||||
20 | the Percent Income Payment Plan, to the extent such | ||||||
21 | integration is practical and has the potential to enhance | ||||||
22 | customer engagement, minimize market confusion, or reduce | ||||||
23 | administrative costs. | ||||||
24 | (4) Present a third-party energy efficiency | ||||||
25 | implementation program subject to the following | ||||||
26 | requirements: |
| |||||||
| |||||||
1 | (A) Beginning with the year commencing January 1, | ||||||
2 | 2024, gas utilities shall fund third-party energy | ||||||
3 | efficiency programs in an amount that is no less than | ||||||
4 | 10% of total efficiency portfolio budgets per year. | ||||||
5 | (B) For the multi-year plans commencing on January | ||||||
6 | 1, 2023, the utility shall conduct a solicitation | ||||||
7 | process during 2023 for purposes of requesting | ||||||
8 | proposals from third-party vendors for those | ||||||
9 | third-party energy efficiency programs to be offered | ||||||
10 | during one or more years of the last 2 years of the | ||||||
11 | 2023 to 2025 plan period. For the solicitation | ||||||
12 | process, the utility shall identify the sector, | ||||||
13 | technology, or a geographic area for which it is | ||||||
14 | seeking requests for proposals. The solicitation | ||||||
15 | process must be for programs that fill gaps in the | ||||||
16 | utility's program portfolio or target business | ||||||
17 | sectors, building types, geographies or other specific | ||||||
18 | parts of its customer base with initiatives that would | ||||||
19 | be more effective at reaching these customer segments | ||||||
20 | than the utilities' programs filed in its energy | ||||||
21 | efficiency plans. | ||||||
22 | (C) For multi-year plans commencing on January 1, | ||||||
23 | 2026, January 1, 2030, and every 4 years thereafter, | ||||||
24 | the utility shall conduct a solicitation process | ||||||
25 | during 2025, 2029, and every 4 years thereafter, | ||||||
26 | respectively, for purposes of requesting proposals |
| |||||||
| |||||||
1 | from third-party vendors for those third-party energy | ||||||
2 | efficiency programs to be offered during one or more | ||||||
3 | years of the respective multi-year plan period; for | ||||||
4 | each solicitation process, the utility shall identify | ||||||
5 | the sector, technology, or geographic area for which | ||||||
6 | it is seeking requests for proposals; the solicitation | ||||||
7 | process must be for programs that fill gaps in the | ||||||
8 | utility's program portfolio or target business | ||||||
9 | sectors, building types, geographies or other specific | ||||||
10 | parts of its customer base with initiatives that would | ||||||
11 | be more effective at reaching these customer segments | ||||||
12 | than the utilities' programs filed in its energy | ||||||
13 | efficiency plans. | ||||||
14 | (D) The utility shall propose the bidder | ||||||
15 | qualifications, performance measurement process, and | ||||||
16 | contract structure, which must include a performance | ||||||
17 | payment mechanism and general terms and conditions; | ||||||
18 | the proposed qualifications, process, and structure | ||||||
19 | shall be subject to Commission approval. | ||||||
20 | (E) The utility shall retain an independent third | ||||||
21 | party to score the proposals received through the | ||||||
22 | solicitation process described in this paragraph (4), | ||||||
23 | rank them according to their cost per lifetime | ||||||
24 | kilowatt hours saved, and assemble the portfolio of | ||||||
25 | third-party programs. | ||||||
26 | The gas utility shall recover all costs associated |
| |||||||
| |||||||
1 | with Commission-approved, third-party administered | ||||||
2 | programs regardless of the success of those programs. | ||||||
3 | (5) Include a proposed or revised cost-recovery | ||||||
4 | mechanism, as provided for under subsection (h) of this | ||||||
5 | Section, to fund the proposed energy efficiency measures | ||||||
6 | and to ensure the recovery of the prudently and reasonably | ||||||
7 | incurred costs of Commission-approved programs. | ||||||
8 | (6) Provide for an annual independent evaluation of | ||||||
9 | the performance of the cost-effectiveness of the utility's | ||||||
10 | portfolio of measures, as well as a full review of the | ||||||
11 | multi-year plan results of the broader net program impacts | ||||||
12 | and, to the extent practical, for adjustment of the | ||||||
13 | measures on a going-forward basis as a result of the | ||||||
14 | evaluations. The resources dedicated to evaluation shall | ||||||
15 | not exceed 3% of portfolio resources in any given year. | ||||||
16 | (7) Each gas utility shall be eligible to earn a | ||||||
17 | shareholder incentive for effective implementation of its | ||||||
18 | efficiency programs. The incentive shall be tied to each | ||||||
19 | utility's annual energy efficiency spending and its | ||||||
20 | savings relative to its applicable annual total savings | ||||||
21 | requirement as defined in paragraph (8) of this subsection | ||||||
22 | (j). There shall be no incentive if the independent | ||||||
23 | evaluator determines the utility failed to achieve savings | ||||||
24 | equal to at least 85% of its applicable annual total | ||||||
25 | savings requirement. The utility shall earn an incentive | ||||||
26 | equal 0.5% of total annual efficiency spending in the year |
| |||||||
| |||||||
1 | being evaluated for every one percentage point above 85% | ||||||
2 | up to 100% of its applicable annual total savings | ||||||
3 | requirement that the utility achieved in that year, such | ||||||
4 | that the utility shall earn an incentive equal to 7.5% of | ||||||
5 | spending for meeting 100% of its applicable annual total | ||||||
6 | savings requirement. The utility shall earn an additional | ||||||
7 | 0.3% of spending for every one percentage point above 100% | ||||||
8 | of its applicable annual total savings requirement | ||||||
9 | achieved, with a maximum incentive of 15% for achieving | ||||||
10 | 125% of its applicable annual total savings requirement. | ||||||
11 | (7.5) In this Section, "applicable annual incremental | ||||||
12 | goal" means the difference between the cumulative | ||||||
13 | persisting annual savings goal for the calendar year that | ||||||
14 | is the subject of the independent evaluator's | ||||||
15 | determination and the cumulative persisting annual savings | ||||||
16 | goal for the immediately preceding calendar year, as such | ||||||
17 | goals are defined in subsection (d) of this Section. Under | ||||||
18 | subsection (d) of this Section, a utility must first | ||||||
19 | replace energy savings from measures that have expired and | ||||||
20 | would otherwise have to be replaced to meet the applicable | ||||||
21 | savings goals identified in subsection (d) of this Section | ||||||
22 | before any progress toward achievement of its applicable | ||||||
23 | annual incremental goal may be counted. Savings may expire | ||||||
24 | because measures installed in previous years have reached | ||||||
25 | the end of their lives, because measures installed in | ||||||
26 | previous years are producing lower savings in the current |
| |||||||
| |||||||
1 | year than in the previous year or for other reasons | ||||||
2 | identified by independent evaluators. Notwithstanding | ||||||
3 | anything else set forth in this Section, the difference | ||||||
4 | between the actual annual incremental savings achieved in | ||||||
5 | any given year, including the replacement of energy | ||||||
6 | savings that have expired, and the applicable annual | ||||||
7 | incremental goal shall not affect adjustments to the | ||||||
8 | return on equity for subsequent calendar years under this | ||||||
9 | subsection (j). | ||||||
10 | (8) In this Section, "applicable annual total savings | ||||||
11 | requirement" means the total amount of new annual savings | ||||||
12 | that the utility must achieve in any given year to achieve | ||||||
13 | the applicable annual incremental goal. This shall be | ||||||
14 | equal to the applicable annual incremental goal plus the | ||||||
15 | total new annual savings that are required to replace | ||||||
16 | savings that expired in or at the end of the previous year. | ||||||
17 | (9) The utility shall submit the energy-savings data | ||||||
18 | to the independent evaluator no later than 30 days after | ||||||
19 | the close of the plan year. The independent evaluator | ||||||
20 | shall determine the cumulative persisting annual savings | ||||||
21 | and the utility's performance relative to its applicable | ||||||
22 | annual total savings requirement for a given plan year no | ||||||
23 | later than 120 days after the close of the plan year. The | ||||||
24 | independent evaluator must also estimate the job impacts | ||||||
25 | and other macroeconomic impacts of the utility's | ||||||
26 | efficiency programs. The utility shall submit an |
| |||||||
| |||||||
1 | informational filing to the Commission no later than 160 | ||||||
2 | days after the close of the plan year that attaches the | ||||||
3 | independent evaluator's final report identifying the | ||||||
4 | cumulative persisting annual savings for the year and | ||||||
5 | calculates, under paragraph (7) of this subsection (j), as | ||||||
6 | applicable, the magnitude of any shareholder incentive | ||||||
7 | that the utility has earned. | ||||||
8 | (9.5) The utility must demonstrate how it will ensure | ||||||
9 | that program implementation contractors and energy | ||||||
10 | efficiency installation vendors will meet multiple | ||||||
11 | workforce equity building criteria, including, but not | ||||||
12 | limited to: | ||||||
13 | (i) Ensuring that an amount of program portfolio | ||||||
14 | incentive funding proportional to the population of | ||||||
15 | BIPOC persons within the utility's territory, as | ||||||
16 | updated every 2 years, is administered or installed by | ||||||
17 | energy efficiency installation vendors who meet one of | ||||||
18 | the following criteria: | ||||||
19 | (aa) certified under Section 2 of the Business | ||||||
20 | Enterprise for Minorities, Women, and Persons with | ||||||
21 | Disabilities Act; or | ||||||
22 | (bb) certified by another municipal, state, | ||||||
23 | federal, or other certification for disadvantaged | ||||||
24 | businesses; or | ||||||
25 | (cc) submit an affidavit showing that the | ||||||
26 | vendor meets the eligibility criteria for a |
| |||||||
| |||||||
1 | certification program such as those in subdivision | ||||||
2 | (aa) or (bb); or | ||||||
3 | (dd) if the vendor is a nonprofit, meet any of | ||||||
4 | the criteria in subdivision (aa), (bb), or (cc) or | ||||||
5 | is controlled by a board of directors that | ||||||
6 | consists of 51% or greater BIPOC persons. | ||||||
7 | (ii) Ensuring that program implementation | ||||||
8 | contractors and energy efficiency installation vendors | ||||||
9 | pay employees working on energy efficiency programs at | ||||||
10 | or above the prevailing wage rate when such a wage rate | ||||||
11 | has been published by the Illinois Department of Labor | ||||||
12 | and pay employees working on energy efficiency | ||||||
13 | programs at or above the median wage rate for a similar | ||||||
14 | job description in the nearest metropolitan area when | ||||||
15 | there is no applicable published prevailing wage rate. | ||||||
16 | If necessary, utilities may conduct surveys to | ||||||
17 | establish the median wage rate for a given job | ||||||
18 | description. Utilities shall establish reporting | ||||||
19 | procedures for vendors that ensure compliance with | ||||||
20 | this subsection, but are structured to avoid, wherever | ||||||
21 | possible, placing an undue administrative burden on | ||||||
22 | vendors. | ||||||
23 | (iii) Ensuring that program implementation | ||||||
24 | contractor employees and energy efficiency | ||||||
25 | installation vendor employees are proportional to the | ||||||
26 | population of people of color, as defined in |
| |||||||
| |||||||
1 | subparagraphs (a) through (e) of paragraph (A)(1) of | ||||||
2 | Section 2 of the Business Enterprise for Minorities, | ||||||
3 | Women, and Persons with Disabilities Act, within the | ||||||
4 | utility's territory, as updated every 2 years. | ||||||
5 | (iv) Ensuring that 30% or more of the energy | ||||||
6 | efficiency installation vendor employees working for | ||||||
7 | vendors reporting to each program implementation | ||||||
8 | contractor are graduates of or trainees in the Clean | ||||||
9 | Energy Workforce Training Hubs programs, Returning | ||||||
10 | Residents Clean Jobs Training programs, or similar | ||||||
11 | programs offering equivalent certifications. | ||||||
12 | (v) Ensuring that vendors who are very small | ||||||
13 | businesses of 5 or fewer full-time employees, | ||||||
14 | businesses that have completed or are participating in | ||||||
15 | the Expanding Clean Energy Entrepreneurship and | ||||||
16 | Contractor Incubator Network Program, and businesses | ||||||
17 | that have completed or are participating in the | ||||||
18 | Illinois Clean Energy Black, Indigenous, and People of | ||||||
19 | Color Primes Contractor Accelerator, receive a | ||||||
20 | substantial portion of program portfolio funding. | ||||||
21 | Utility plans to achieve this shall include efforts to | ||||||
22 | provide the necessary training and administrative | ||||||
23 | support needed for very small businesses to meet | ||||||
24 | utility-mandated training, certification, insurance, | ||||||
25 | and security-related contract requirements. | ||||||
26 | (9.6) Utilities shall collect data necessary to ensure |
| |||||||
| |||||||
1 | compliance with paragraph (9.5) no less than quarterly and | ||||||
2 | shall communicate progress toward compliance with | ||||||
3 | paragraph (9.5) to program implementation contractors and | ||||||
4 | energy efficiency installation vendors no less than | ||||||
5 | quarterly. When it seems unlikely that the criteria in | ||||||
6 | paragraph (9.5) will be met, utilities shall work with | ||||||
7 | relevant vendors, providing education, training, and other | ||||||
8 | resources needed to ensure compliance and, where | ||||||
9 | necessary, adjusting or terminating work with vendors that | ||||||
10 | cannot assist with compliance. | ||||||
11 | (10) A utility required to implement efficiency | ||||||
12 | programs under this Section shall report annually to the | ||||||
13 | Illinois Commerce Commission and the General Assembly on | ||||||
14 | how hiring, contracting, job training, and other practices | ||||||
15 | related to its energy efficiency programs enhance the | ||||||
16 | diversity of vendors working on such programs. These | ||||||
17 | reports must include data on vendor and employee | ||||||
18 | diversity, including data on the implementation of | ||||||
19 | paragraphs (9.5) and (9.6). If the utility is not meeting | ||||||
20 | the requirements of paragraphs (9.5) and (9.6), the | ||||||
21 | utility shall submit a plan to adjust their activities so | ||||||
22 | that they meet the requirements of paragraphs (9.5) and | ||||||
23 | (9.6) within the following year. | ||||||
24 | (j-5) Energy efficiency potential study. An energy | ||||||
25 | efficiency potential study shall be commissioned and overseen | ||||||
26 | by the Illinois Commerce Commission. The potential study shall |
| |||||||
| |||||||
1 | be a dual fuel study, addressing both gas and electric | ||||||
2 | efficiency potential, such that the requirements both in this | ||||||
3 | subsection (j-5) and in subsection (f-5) of Section 8-103B are | ||||||
4 | met in an integrated and cost-efficient manner. The potential | ||||||
5 | study shall be designed and conducted with input from a | ||||||
6 | Potential Study Stakeholder Committee established by the | ||||||
7 | Commission. This Committee shall be composed of | ||||||
8 | representatives from each electric utility, the Illinois | ||||||
9 | Attorney General's office, at least 2 environmental | ||||||
10 | stakeholders, at least one community-based organization, and | ||||||
11 | additional parties representing consumers. The Committee shall | ||||||
12 | provide input, at a minimum, into the scope of work for the | ||||||
13 | studies, the selection of vendors to perform the studies in | ||||||
14 | accordance with appropriate confidentiality and conflict of | ||||||
15 | interest provisions, and draft work products. The Committee | ||||||
16 | shall make best efforts to achieve consensus on the key | ||||||
17 | elements of the potential study, including: | ||||||
18 | (i) savings potential from efficiency measures and | ||||||
19 | program concepts that are known at the time of the study; | ||||||
20 | (ii) likely emergence of new technology or new program | ||||||
21 | concepts that could emerge, including proxies for new | ||||||
22 | technologies or program concepts that cannot be | ||||||
23 | specifically named, identified, or characterized at the | ||||||
24 | time of the study; | ||||||
25 | (iii) likely savings potential from efficiency | ||||||
26 | measures that may be unique to individual industries or |
| |||||||
| |||||||
1 | individual facilities; and | ||||||
2 | (iv) the experience of other similar utilities, areas | ||||||
3 | and jurisdictions in maximizing achievement of | ||||||
4 | cost-effective savings. | ||||||
5 | When the committee is not able to reach consensus, the | ||||||
6 | Commission shall make the final decision. | ||||||
7 | (k) No more than 6% of energy efficiency and | ||||||
8 | demand-response program revenue may be allocated for research, | ||||||
9 | development, or pilot deployment of new equipment or measures. | ||||||
10 | (l) When practical, gas utilities shall incorporate | ||||||
11 | advanced metering infrastructure data into the planning, | ||||||
12 | implementation, and evaluation of energy efficiency measures | ||||||
13 | and programs, subject to the data privacy and confidentiality | ||||||
14 | protections of applicable law. | ||||||
15 | (m) The independent evaluator shall follow the guidelines | ||||||
16 | and use the savings set forth in Commission-approved energy | ||||||
17 | efficiency policy manuals and technical reference manuals, as | ||||||
18 | each may be updated from time to time. Until measure life | ||||||
19 | values for energy efficiency measures implemented for | ||||||
20 | low-income households under subsection (f) of this Section are | ||||||
21 | incorporated into such Commission-approved manuals, the | ||||||
22 | low-income measures shall have the same measure life values | ||||||
23 | that are established for same measures implemented in | ||||||
24 | households that are not low-income households. | ||||||
25 | (220 ILCS 5/8-512 new) |
| |||||||
| |||||||
1 | Sec. 8-512. Renewable energy access plan. | ||||||
2 | (a) It is the policy of this State to promote | ||||||
3 | cost-effective transmission system development that ensures | ||||||
4 | reliability of the electric transmission system, lowers carbon | ||||||
5 | emissions, minimizes long-term costs for consumers, and | ||||||
6 | supports the electric policy goals of this State. | ||||||
7 | The General Assembly finds that: | ||||||
8 | (1) Transmission planning, primarily for reliability | ||||||
9 | purposes, but also for economic and public policy reasons | ||||||
10 | is conducted by regional transmission organizations in | ||||||
11 | which transmission-owning Illinois utilities and other | ||||||
12 | stakeholders are members. | ||||||
13 | (2) Order No. 1000 of the Federal Energy Regulatory | ||||||
14 | Commission requires regional transmission organizations to | ||||||
15 | plan for transmission system needs in light of state | ||||||
16 | public policies, and to accept input from states during | ||||||
17 | the transmission system planning processes. | ||||||
18 | (3) The State of Illinois does not currently have a | ||||||
19 | comprehensive power and environmental policy planning | ||||||
20 | process to identify transmission infrastructure needs that | ||||||
21 | can serve as a vital input into the regional and | ||||||
22 | inter-regional transmission organization planning | ||||||
23 | processes conducted under Order No. 1000 and other laws. | ||||||
24 | (4) This State is an electricity generation and power | ||||||
25 | transmission hub, and can leverage that position to invest | ||||||
26 | in infrastructure that enables new and existing Illinois |
| |||||||
| |||||||
1 | generators to meet the public policy goals of the State of | ||||||
2 | Illinois and of interconnected states while | ||||||
3 | cost-effectively supporting tens of thousands of jobs in | ||||||
4 | the renewable energy sector in this State. | ||||||
5 | (5) The nation cannot readily access this State's | ||||||
6 | low-cost, clean electric power, and this State is hindered | ||||||
7 | in its ability to develop and support its low-carbon | ||||||
8 | economy and keep electricity prices low in Illinois and | ||||||
9 | interconnected states. | ||||||
10 | (6) Existing transmission infrastructure may constrain | ||||||
11 | the State's achievement of 100% renewable energy by 2050, | ||||||
12 | a carbon-free power sector by 2030, and an expanded use of | ||||||
13 | electric vehicles in a just and equitable way. | ||||||
14 | (7) Transmission system congestion within this State | ||||||
15 | and the regional transmission organizations serving this | ||||||
16 | State limits the ability of this State's existing and new | ||||||
17 | electric generation facilities that do not emit carbon | ||||||
18 | dioxide, including renewable energy resources and zero | ||||||
19 | emission facilities, to serve the public policy goals of | ||||||
20 | this State and other states, which constrains investment | ||||||
21 | in this State. | ||||||
22 | (8) Investment in infrastructure to support existing | ||||||
23 | and new electric generation facilities that do not emit | ||||||
24 | carbon dioxide, including renewable energy resources and | ||||||
25 | zero emission facilities, stimulates significant economic | ||||||
26 | development and job growth in this State, as well as |
| |||||||
| |||||||
1 | creates environmental and public health benefits in this | ||||||
2 | State. | ||||||
3 | (9) Creating a forward-looking plan for this State's | ||||||
4 | electric transmission infrastructure, as opposed to | ||||||
5 | relying on case-by-case development and repeated marginal | ||||||
6 | upgrades, will achieve a lower-cost system for Illinois' | ||||||
7 | electricity customers. A forward-looking plan can also | ||||||
8 | help integrate and achieve a comprehensive set of | ||||||
9 | objectives and multiple state, regional, and national | ||||||
10 | policy goals. | ||||||
11 | (10) Alternatives to overhead electric transmission | ||||||
12 | lines can achieve cost-effective resolution of system | ||||||
13 | impacts, and warrant investigation of the circumstances | ||||||
14 | those alternatives should be considered and approved. The | ||||||
15 | alternatives are likely to be beneficial as investment in | ||||||
16 | electric transmission infrastructure moves forward. | ||||||
17 | (b) Consistent with the findings identified in subsection | ||||||
18 | (a), the Commission shall open an investigation to deliberate, | ||||||
19 | develop, and adopt a renewable energy access plan no later | ||||||
20 | than December 31, 2022. To assist and support the Commission | ||||||
21 | in the development of the plan, the Commission shall retain | ||||||
22 | the services of technical and policy experts with relevant | ||||||
23 | fields of expertise, solicit technical and policy analysis | ||||||
24 | from the public, and provide for a 120-day open public comment | ||||||
25 | period after publication of a draft report, which shall be | ||||||
26 | published no later than 90 days after the comment period ends. |
| |||||||
| |||||||
1 | The plan shall, at a minimum, do the following: | ||||||
2 | (1) designate renewable energy access plan zones | ||||||
3 | throughout this State in areas in which renewable energy | ||||||
4 | resources and suitable land areas are sufficient to | ||||||
5 | develop generating capacity from renewable energy | ||||||
6 | technologies; | ||||||
7 | (2) develop a plan to achieve transmission capacity | ||||||
8 | necessary to deliver to electric customers in Illinois and | ||||||
9 | other states, in a manner that is most beneficial and | ||||||
10 | cost-effective to the customers, the electric output from | ||||||
11 | renewable energy technologies in the renewable energy | ||||||
12 | access plan zones; | ||||||
13 | (3) use this State's position as an electricity | ||||||
14 | generation and power transmission hub to create new | ||||||
15 | investment in this State's renewable energy resources; | ||||||
16 | (4) introduce and consider programs, policies, and | ||||||
17 | electric transmission projects that can be adopted within | ||||||
18 | this State and advocated for at regional transmission | ||||||
19 | organizations, that promote the cost-effective delivery of | ||||||
20 | power from renewable energy resources interconnected to | ||||||
21 | the bulk electric system to meet the renewable portfolio | ||||||
22 | standard targets under subsection (c) of Section 1-75 of | ||||||
23 | the Illinois Power Agency Act, and to meet current and | ||||||
24 | future public policy goals of other states, the region, or | ||||||
25 | the nation; | ||||||
26 | (5) introduce and consider proposals to improve |
| |||||||
| |||||||
1 | regional transmission organizations' regional and | ||||||
2 | interregional system planning processes and an analysis of | ||||||
3 | how those proposals would improve reliability and | ||||||
4 | cost-effective delivery of electricity in Illinois and the | ||||||
5 | region; | ||||||
6 | (6) the Commission's specific findings, based on | ||||||
7 | technical and policy analysis, regarding locations of | ||||||
8 | renewable energy access plan zones, the transmission | ||||||
9 | system developments needed to cost-effectively achieve the | ||||||
10 | public policy goals identified herein, any recommended | ||||||
11 | policies to initiate within this State, or recommended | ||||||
12 | advocacy at regional transmission organizations; and | ||||||
13 | (7) the Commission's conclusions and proposed | ||||||
14 | recommendations based on its analysis. | ||||||
15 | (c) No later than December 31, 2025, and in each | ||||||
16 | odd-numbered year thereafter, the Commission shall open an | ||||||
17 | investigation to deliberate, develop, and adopt an updated | ||||||
18 | renewable energy access plan that, at a minimum, evaluates the | ||||||
19 | implementation and effectiveness of the renewable energy | ||||||
20 | access plan, recommends improvements to the renewable energy | ||||||
21 | access plan, and provides changes to transmission capacity | ||||||
22 | necessary to deliver electric output from the renewable energy | ||||||
23 | access plan zones. | ||||||
24 | (220 ILCS 5/9-220.3) | ||||||
25 | (Section scheduled to be repealed on December 31, 2023) |
| |||||||
| |||||||
1 | Sec. 9-220.3. Natural gas surcharges authorized. | ||||||
2 | (a) Tariff. | ||||||
3 | (1) Pursuant to Section 9-201 of this Act, a natural | ||||||
4 | gas utility serving more than 700,000 customers may file a | ||||||
5 | tariff for a surcharge which adjusts rates and charges to | ||||||
6 | provide for recovery of costs associated with investments | ||||||
7 | in qualifying infrastructure plant, independent of any | ||||||
8 | other matters related to the utility's revenue | ||||||
9 | requirement. | ||||||
10 | (2) Within 30 days after the effective date of this | ||||||
11 | amendatory Act of the 98th General Assembly, the | ||||||
12 | Commission shall adopt emergency rules to implement the | ||||||
13 | provisions of this amendatory Act of the 98th General | ||||||
14 | Assembly. The utility may file with the Commission tariffs | ||||||
15 | implementing the provisions of this amendatory Act of the | ||||||
16 | 98th General Assembly after the effective date of the | ||||||
17 | emergency rules authorized by subsection (i). | ||||||
18 | (3) The Commission shall issue an order approving, or | ||||||
19 | approving with modification to ensure compliance with this | ||||||
20 | Section, the tariff no later than 120 days after such | ||||||
21 | filing of the tariffs filed pursuant to this Section. The | ||||||
22 | utility shall have 7 days following the date of service of | ||||||
23 | the order to notify the Commission in writing whether it | ||||||
24 | will accept any modifications so identified in the order | ||||||
25 | or whether it has elected not to proceed with the tariff. | ||||||
26 | If the order includes no modifications or if the utility |
| |||||||
| |||||||
1 | notifies the Commission that it will accept such | ||||||
2 | modifications, the tariff shall take effect on the first | ||||||
3 | day of the calendar year in which the Commission issues | ||||||
4 | the order, subject to petitions for rehearing and | ||||||
5 | appellate procedures. After the tariff takes effect, the | ||||||
6 | utility may, upon 10 days' notice to the Commission, file | ||||||
7 | to withdraw the tariff at any time, and the Commission | ||||||
8 | shall approve such filing without suspension or hearing, | ||||||
9 | subject to a final reconciliation as provided in | ||||||
10 | subsection (e) of this Section. | ||||||
11 | (4) When a natural gas utility withdraws the surcharge | ||||||
12 | tariff, the utility shall not recover any additional | ||||||
13 | charges through the surcharge approved pursuant to this | ||||||
14 | Section, subject to the resolution of the final | ||||||
15 | reconciliation pursuant to subsection (e) of this Section. | ||||||
16 | The utility's qualifying infrastructure investment net of | ||||||
17 | accumulated depreciation may be transferred to the natural | ||||||
18 | gas utility's rate base in the utility's next general rate | ||||||
19 | case. The utility's delivery base rates in effect upon | ||||||
20 | withdrawal of the surcharge tariff shall not be adjusted | ||||||
21 | at the time the surcharge tariff is withdrawn. | ||||||
22 | (5) A natural gas utility that is subject to its | ||||||
23 | delivery base rates being fixed at their current rates | ||||||
24 | pursuant to a Commission order entered in Docket No. | ||||||
25 | 11-0046, notwithstanding the effective date of its tariff | ||||||
26 | authorized pursuant to this Section, shall reflect in a |
| |||||||
| |||||||
1 | tariff surcharge only those projects placed in service | ||||||
2 | after the fixed rate period of the merger agreement has | ||||||
3 | expired by its terms. | ||||||
4 | (b) For purposes of this Section, "qualifying | ||||||
5 | infrastructure plant" includes only plant additions placed in | ||||||
6 | service not reflected in the rate base used to establish the | ||||||
7 | utility's delivery base rates. "Costs associated with | ||||||
8 | investments in qualifying infrastructure plant" shall include | ||||||
9 | a return on qualifying infrastructure plant and recovery of | ||||||
10 | depreciation and amortization expense on qualifying | ||||||
11 | infrastructure plant, net of the depreciation included in the | ||||||
12 | utility's base rates on any plant retired in conjunction with | ||||||
13 | the installation of the qualifying infrastructure plant. | ||||||
14 | Collectively the "qualifying infrastructure plant" and "costs | ||||||
15 | associated with investments in qualifying infrastructure | ||||||
16 | plant" are referred to as the "qualifying infrastructure | ||||||
17 | investment" and that are related to one or more of the | ||||||
18 | following: | ||||||
19 | (1) the installation of facilities to retire and | ||||||
20 | replace underground natural gas facilities, including | ||||||
21 | facilities appurtenant to facilities constructed of those | ||||||
22 | materials such as meters, regulators, and services, and | ||||||
23 | that are constructed of cast iron, wrought iron, ductile | ||||||
24 | iron, unprotected coated steel, unprotected bare steel, | ||||||
25 | mechanically coupled steel, copper, Cellulose Acetate | ||||||
26 | Butyrate (CAB) plastic, pre-1973 DuPont Aldyl "A" |
| |||||||
| |||||||
1 | polyethylene, PVC, or other types of materials identified | ||||||
2 | by a State or federal governmental agency as being prone | ||||||
3 | to leakage; | ||||||
4 | (2) the relocation of meters from inside customers' | ||||||
5 | facilities to outside; | ||||||
6 | (3) the upgrading of the gas distribution system from | ||||||
7 | a low pressure to a medium pressure system, including | ||||||
8 | installation of high-pressure facilities to support the | ||||||
9 | upgrade; | ||||||
10 | (4) modernization investments by a combination | ||||||
11 | utility, as defined in subsection (b) of Section 16-108.5 | ||||||
12 | of this Act, to install: | ||||||
13 | (A) advanced gas meters in connection with the | ||||||
14 | installation of advanced electric meters pursuant to | ||||||
15 | Sections 16-108.5 and 16-108.6 of this Act; and | ||||||
16 | (B) the communications hardware and software and | ||||||
17 | associated system software that creates a network | ||||||
18 | between advanced gas meters and utility business | ||||||
19 | systems and allows the collection and distribution of | ||||||
20 | gas-related information to customers and other parties | ||||||
21 | in addition to providing information to the utility | ||||||
22 | itself; | ||||||
23 | (5) replacing high-pressure transmission pipelines and | ||||||
24 | associated facilities identified as having a higher risk | ||||||
25 | of leakage or failure or installing or replacing | ||||||
26 | high-pressure transmission pipelines and associated |
| |||||||
| |||||||
1 | facilities to establish records and maximum allowable | ||||||
2 | operating pressures; | ||||||
3 | (6) replacing difficult to locate mains and service | ||||||
4 | pipes and associated facilities; and | ||||||
5 | (7) replacing or installing transmission and | ||||||
6 | distribution regulator stations, regulators, valves, and | ||||||
7 | associated facilities to establish over-pressure | ||||||
8 | protection. | ||||||
9 | With respect to the installation of the facilities | ||||||
10 | identified in paragraph (1) of subsection (b) of this Section, | ||||||
11 | the natural gas utility shall determine priorities for such | ||||||
12 | installation with consideration of projects either: (i) | ||||||
13 | integral to a general government public facilities improvement | ||||||
14 | program or (ii) ranked in the highest risk categories in the | ||||||
15 | utility's most recent Distribution Integrity Management Plan | ||||||
16 | where removal or replacement is the remedial measure. | ||||||
17 | (c) Qualifying infrastructure investment, defined in | ||||||
18 | subsection (b) of this Section, recoverable through a tariff | ||||||
19 | authorized by subsection (a) of this Section, shall not | ||||||
20 | include costs or expenses incurred in the ordinary course of | ||||||
21 | business for the ongoing or routine operations of the utility, | ||||||
22 | including, but not limited to: | ||||||
23 | (1) operating and maintenance costs; and | ||||||
24 | (2) costs of facilities that are revenue-producing, | ||||||
25 | which means facilities that are constructed or installed | ||||||
26 | for the purpose of serving new customers. |
| |||||||
| |||||||
1 | (d) Gas utility commitments. A natural gas utility that | ||||||
2 | has in effect a natural gas surcharge tariff pursuant to this | ||||||
3 | Section shall: | ||||||
4 | (1) recognize that the General Assembly identifies | ||||||
5 | improved public safety and reliability of natural gas | ||||||
6 | facilities as the cornerstone upon which this Section is | ||||||
7 | designed, and qualifying projects should be encouraged, | ||||||
8 | selected, and prioritized based on these factors; and | ||||||
9 | (2) provide information to the Commission as requested | ||||||
10 | to demonstrate that (i) the projects included in the | ||||||
11 | tariff are indeed qualifying projects and (ii) the | ||||||
12 | projects are selected and prioritized taking into account | ||||||
13 | improved public safety and reliability. | ||||||
14 | (3) The amount of qualifying infrastructure investment | ||||||
15 | eligible for recovery under the tariff in the applicable | ||||||
16 | calendar year is limited to the lesser of (i) the actual | ||||||
17 | qualifying infrastructure plant placed in service in the | ||||||
18 | applicable calendar year and (ii) the difference by which | ||||||
19 | total plant additions in the applicable calendar year | ||||||
20 | exceed the baseline amount, and subject to the limitation | ||||||
21 | in subsection (g) of this Section. A natural gas utility | ||||||
22 | can recover the costs of qualifying infrastructure | ||||||
23 | investments through an approved surcharge tariff from the | ||||||
24 | beginning of each calendar year subject to the | ||||||
25 | reconciliation initiated under paragraph (2) of subsection | ||||||
26 | (e) of this Section, during which the Commission may make |
| |||||||
| |||||||
1 | adjustments to ensure that the limits defined in this | ||||||
2 | paragraph are not exceeded. Further, if total plant | ||||||
3 | additions in a calendar year do not exceed the baseline | ||||||
4 | amount in the applicable calendar year, the Commission, | ||||||
5 | during the reconciliation initiated under paragraph (2) of | ||||||
6 | subsection (e) of this Section for the applicable calendar | ||||||
7 | year, shall adjust the amount of qualifying infrastructure | ||||||
8 | investment eligible for recovery under the tariff to zero. | ||||||
9 | (4) For purposes of this Section, "baseline amount" | ||||||
10 | means an amount equal to the utility's average of total | ||||||
11 | depreciation expense, as reported on page 336, column (b) | ||||||
12 | of the utility's ILCC Form 21, for the calendar years 2006 | ||||||
13 | through 2010. | ||||||
14 | (e) Review of investment. | ||||||
15 | (1) The amount of qualifying infrastructure investment | ||||||
16 | shall be shown on an Information Sheet supplemental to the | ||||||
17 | surcharge tariff and filed with the Commission monthly or | ||||||
18 | some other time period at the option of the utility. The | ||||||
19 | Information Sheet shall be accompanied by data showing the | ||||||
20 | calculation of the qualifying infrastructure investment | ||||||
21 | adjustment. Unless otherwise ordered by the Commission, | ||||||
22 | each qualifying infrastructure investment adjustment shown | ||||||
23 | on an Information Sheet shall become effective pursuant to | ||||||
24 | the utility's approved tariffs. | ||||||
25 | (2) For each calendar year in which a surcharge tariff | ||||||
26 | is in effect, the natural gas utility shall file a |
| |||||||
| |||||||
1 | petition with the Commission to initiate hearings to | ||||||
2 | reconcile amounts billed under each surcharge authorized | ||||||
3 | pursuant to this Section with the actual prudently | ||||||
4 | incurred costs recoverable under this tariff in the | ||||||
5 | preceding year. The petition filed by the natural gas | ||||||
6 | utility shall include testimony and schedules that support | ||||||
7 | the accuracy and the prudence of the qualifying | ||||||
8 | infrastructure investment for the calendar year being | ||||||
9 | reconciled. The petition filed shall also include the | ||||||
10 | number of jobs attributable to the natural gas surcharge | ||||||
11 | tariff as required by rule. The review of the utility's | ||||||
12 | investment shall include identification and review of all | ||||||
13 | plant that was ranked within the highest risk categories | ||||||
14 | in that utility's most recent Distribution Integrity | ||||||
15 | Management Plan. | ||||||
16 | (f) The rate of return applied shall be the overall rate of | ||||||
17 | return authorized by the Commission in the utility's last gas | ||||||
18 | rate case. | ||||||
19 | (g) The cumulative amount of increases billed under the | ||||||
20 | surcharge, since the utility's most recent delivery service | ||||||
21 | rate order, shall not exceed an annual average 4% of the | ||||||
22 | utility's delivery base rate revenues, but shall not exceed | ||||||
23 | 5.5% in any given year. On the effective date of new delivery | ||||||
24 | base rates, the surcharge shall be reduced to zero with | ||||||
25 | respect to qualifying infrastructure investment that is | ||||||
26 | transferred to the rate base used to establish the utility's |
| |||||||
| |||||||
1 | delivery base rates, provided that the utility may continue to | ||||||
2 | charge or refund any reconciliation adjustment determined | ||||||
3 | pursuant to subsection (e) of this Section. | ||||||
4 | (h) If a gas utility obtains a surcharge tariff under this | ||||||
5 | Section 9-220.3, then it and its affiliates are excused from | ||||||
6 | the rate case filing requirements contained in Sections | ||||||
7 | 9-220(h) and 9-220(h-1). In the event a natural gas utility, | ||||||
8 | prior to the effective date of this amendatory Act of the 98th | ||||||
9 | General Assembly, made a rate case filing that is still | ||||||
10 | pending on the effective date of this amendatory Act of the | ||||||
11 | 98th General Assembly, the natural gas utility may, at the | ||||||
12 | time it files its surcharge tariff with the Commission, also | ||||||
13 | file a notice with the Commission to withdraw its rate case | ||||||
14 | filing. Any affiliate of such natural gas utility may also | ||||||
15 | file to withdraw its rate case filing. Upon receipt of such | ||||||
16 | notice, the Commission shall dismiss the rate case filing with | ||||||
17 | prejudice and such tariffs and the record related thereto | ||||||
18 | shall not be the subject of any further hearing, | ||||||
19 | investigation, or proceeding of any kind related to rates for | ||||||
20 | gas delivery services. Notwithstanding the foregoing, a | ||||||
21 | natural gas utility shall not be permitted to withdraw a rate | ||||||
22 | case filing for which a proposed order recommending a rate | ||||||
23 | reduction is pending. A natural gas utility shall not be | ||||||
24 | permitted to withdraw the gas delivery services tariffs that | ||||||
25 | are the subject of Commission Docket Nos. 12-0511/12-0512 | ||||||
26 | (cons.). None of the costs incurred for the withdrawn rate |
| |||||||
| |||||||
1 | case are recoverable from ratepayers. | ||||||
2 | (i) The Commission shall promulgate rules and regulations | ||||||
3 | to carry out the provisions of this Section under the | ||||||
4 | emergency rulemaking provisions set forth in Section 5-45 of | ||||||
5 | the Illinois Administrative Procedure Act, and such emergency | ||||||
6 | rules shall be effective no later than 30 days after the | ||||||
7 | effective date of this amendatory Act of the 98th General | ||||||
8 | Assembly. | ||||||
9 | (j) Utilities that have elected to recover qualifying | ||||||
10 | infrastructure investment costs pursuant to this Section shall | ||||||
11 | file annually their Distribution Integrity Management Plan | ||||||
12 | (DIMP) with the Commission no later than June 1 of each year | ||||||
13 | the utility has said tariff in effect. The DIMP shall include | ||||||
14 | the following information: | ||||||
15 | (1) Baseline Distribution System Data: Information | ||||||
16 | such as demand, system pressures and flows, and metering | ||||||
17 | infrastructure. | ||||||
18 | (2) Financial Data: historical and projected spending | ||||||
19 | on distribution system infrastructure. | ||||||
20 | (3) Scenario Analysis: Discussion of projected changes | ||||||
21 | in usage over time. | ||||||
22 | (4) Descriptions of all qualifying infrastructure | ||||||
23 | investment proposed for the coming year. | ||||||
24 | (k) Within 45 days after filing, the Commission shall, | ||||||
25 | with reasonable notice, open an investigation to consider | ||||||
26 | whether the Plan meets the objectives set forth in this |
| |||||||
| |||||||
1 | subsection and contains the information required by subsection | ||||||
2 | (j). The Commission shall issue a final order approving the | ||||||
3 | Plan, with any modifications the Commission deems reasonable | ||||||
4 | and appropriate to achieve the goals of this Section, within | ||||||
5 | 270 days after the Plan filing. The investigation shall assess | ||||||
6 | whether the DIMP: | ||||||
7 | (1) ensures optimized use of utility infrastructure | ||||||
8 | assets and resources to minimize total system costs; | ||||||
9 | (2) enables greater customer engagement, empowerment, | ||||||
10 | and options for services; | ||||||
11 | (3) to the maximum extent possible, achieves and or | ||||||
12 | supports the achievement of greenhouse gas emissions | ||||||
13 | reductions as described by Section 9.10 of the | ||||||
14 | Environmental Protection Act; and | ||||||
15 | (4) supports existing Illinois policy goals promoting | ||||||
16 | energy efficiency. | ||||||
17 | The Commission process shall maximize the sharing of | ||||||
18 | information, ensure robust stakeholder participation, and | ||||||
19 | recognize the responsibility of the utility to ultimately | ||||||
20 | manage the grid in a safe, reliable manner. | ||||||
21 | (l) (j) This Section is repealed December 31, 2023.
| ||||||
22 | (Source: P.A. 98-57, eff. 7-5-13.) | ||||||
23 | (220 ILCS 5/9-222.1B new) | ||||||
24 | Sec. 9-222.1B. Clean Energy Empowerment Zone exemption. A | ||||||
25 | renewable energy enterprise that is located within a Clean |
| |||||||
| |||||||
1 | Energy Empowerment Zone established under the Energy Community | ||||||
2 | Reinvestment Act shall be exempt from the additional charges | ||||||
3 | added to the renewable energy enterprise's utility bills as a | ||||||
4 | pass-on of municipal and State utility taxes under Sections | ||||||
5 | 9-221 and 9-222 of this Act, to the extent such charges are | ||||||
6 | exempted by ordinance adopted in accordance with paragraph (e) | ||||||
7 | of Section 8-11-2 of the Illinois Municipal Code in the case of | ||||||
8 | municipal utility taxes, and to the extent such charges are | ||||||
9 | exempted by the percentage specified by the Department of | ||||||
10 | Commerce and Economic Opportunity in the case of State utility | ||||||
11 | taxes, provided such renewable energy enterprise meets the | ||||||
12 | following criteria: | ||||||
13 | (1) it (i) makes investments that cause the creation
| ||||||
14 | of a minimum of 200 full-time equivalent jobs in Illinois; | ||||||
15 | (ii) makes investments of at least $175,000,000 that cause | ||||||
16 | the creation of a minimum of 150 full-time equivalent jobs | ||||||
17 | in Illinois; (iii) makes investments that cause the | ||||||
18 | retention of a minimum of 300 full-time equivalent jobs in | ||||||
19 | the manufacturing sector, as defined by the North American | ||||||
20 | Industry Classification System, in an area in Illinois in | ||||||
21 | which the unemployment rate is above 9% and makes an | ||||||
22 | application to the Department within 3 months after the | ||||||
23 | effective date of this amendatory Act of the 102nd General | ||||||
24 | Assembly and certifies relocation of the 300 full-time | ||||||
25 | equivalent jobs within 48 months after the application; or | ||||||
26 | (iv) makes investments that cause the retention of a |
| |||||||
| |||||||
1 | minimum of 1,000 full-time jobs in Illinois; | ||||||
2 | (2) it is located in a Clean Energy Empowerment Zone | ||||||
3 | established under the Energy Community Reinvestment Act; | ||||||
4 | and | ||||||
5 | (3) it is certified by the Department of Commerce and
| ||||||
6 | Economic Opportunity as complying with the requirements | ||||||
7 | specified in clauses (1) and (2) of this Section. | ||||||
8 | The Department of Commerce and Economic Opportunity shall | ||||||
9 | determine the period during which such exemption from the | ||||||
10 | charges imposed under Section 9-222 is in effect which shall | ||||||
11 | not exceed 30 years or the term of the Clean Energy Empowerment | ||||||
12 | Zone, whichever period is shorter, except that the exemption | ||||||
13 | period for a renewable energy enterprise qualifying under item | ||||||
14 | (iii) of clause (1) of this Section shall not exceed 30 years. | ||||||
15 | The Department of Commerce and Economic Opportunity has | ||||||
16 | the power to adopt rules to carry out the provisions of this | ||||||
17 | Section including procedures for complying with the | ||||||
18 | requirements specified in clauses (1) and (2) of this Section | ||||||
19 | and procedures for applying for the exemptions authorized | ||||||
20 | under this Section; to define the amounts and types of | ||||||
21 | eligible investments that a renewable energy enterprise must | ||||||
22 | make in order to receive State utility tax exemptions pursuant | ||||||
23 | to Sections 9-222 and 9-222.1 of this Act; to approve such | ||||||
24 | utility tax exemptions for renewable energy enterprise whose | ||||||
25 | investments are not yet placed in service; and to require that | ||||||
26 | renewable energy enterprise granted tax exemptions repay the |
| |||||||
| |||||||
1 | exempted tax should the renewable energy enterprise fail to | ||||||
2 | comply with the terms and conditions of the certification. | ||||||
3 | However, no renewable energy enterprise shall be required, as | ||||||
4 | a condition for certification under clause (3) of this | ||||||
5 | Section, to attest that its decision to invest under clause | ||||||
6 | (1) of this Section and to locate under clause (2) of this | ||||||
7 | Section is predicated upon the availability of the exemptions | ||||||
8 | authorized by this Section. | ||||||
9 | A renewable energy enterprise shall be exempt, in whole or | ||||||
10 | in part, from the pass-on charges of municipal utility taxes | ||||||
11 | imposed under Section 9-221, only if it meets the criteria | ||||||
12 | specified in clauses (1) through (3) of this Section and the | ||||||
13 | municipality has adopted an ordinance authorizing the | ||||||
14 | exemption under paragraph (e) of Section 8-11-2 of the | ||||||
15 | Illinois Municipal Code. Upon certification of the renewable | ||||||
16 | energy enterprise by the Department of Commerce and Economic | ||||||
17 | Opportunity, the Department of Commerce and Economic | ||||||
18 | Opportunity shall notify the Department of Revenue of such | ||||||
19 | certification. The Department of Revenue shall notify the | ||||||
20 | public utilities of the exemption status of renewable energy | ||||||
21 | enterprises from the pass-on charges of State and municipal | ||||||
22 | utility taxes. Such exemption status shall be effective within | ||||||
23 | 3 months after certification of the renewable energy | ||||||
24 | enterprise.
| ||||||
25 | (220 ILCS 5/9-227) (from Ch. 111 2/3, par. 9-227)
|
| |||||||
| |||||||
1 | Sec. 9-227.
It is the policy of this State to encourage | ||||||
2 | electric and natural gas public utilities to promote the | ||||||
3 | welfare of this State and their communities through donations | ||||||
4 | made from the utility's shareholder profits rather than by | ||||||
5 | using ratepayer funds. Such contributions shall not be | ||||||
6 | recoverable through the public utility's rates. It shall be | ||||||
7 | proper for the Commission to consider as an
operating expense, | ||||||
8 | for the purpose of determining whether a rate or other
charge | ||||||
9 | or classification is sufficient, donations made by a public | ||||||
10 | utility
for the public welfare or for charitable scientific, | ||||||
11 | religious or
educational purposes, provided that such | ||||||
12 | donations are reasonable in amount.
In determining the | ||||||
13 | reasonableness of such donations, the Commission may
not | ||||||
14 | establish, by rule, a presumption that any particular portion | ||||||
15 | of an
otherwise reasonable amount may not be considered as an | ||||||
16 | operating expense.
The Commission shall be prohibited from | ||||||
17 | disallowing by rule, as an
operating expense, any portion of a | ||||||
18 | reasonable donation for public welfare
or charitable purposes.
| ||||||
19 | (Source: P.A. 85-122.)
| ||||||
20 | (220 ILCS 5/10-104) (from Ch. 111 2/3, par. 10-104)
| ||||||
21 | Sec. 10-104. Public hearings. | ||||||
22 | (a) As used in this Section, "major case" includes: | ||||||
23 | (1) rate cases; | ||||||
24 | (2) rulemakings; | ||||||
25 | (3) other proceedings with a significant effect on |
| |||||||
| |||||||
1 | rates; | ||||||
2 | (4) large infrastructure projects with significant | ||||||
3 | nonrate impacts on communities near their location; | ||||||
4 | (5) new programs; | ||||||
5 | (6) any planning dockets related to energy efficiency, | ||||||
6 | renewable energy, and interconnection infrastructure; and | ||||||
7 | (7) any other docketed or undocketed proceedings for | ||||||
8 | which the Commission feels that robust public engagement | ||||||
9 | is needed. | ||||||
10 | (b) When the outcome of a major case would have effects | ||||||
11 | statewide, or have any significant effects outside the | ||||||
12 | territory of the utility or utilities involved in the case, | ||||||
13 | the Commission shall hold at least 5 public hearings
for the | ||||||
14 | purpose of receiving public comment on each such major case.
| ||||||
15 | One of these hearings must be in the Chicago metropolitan | ||||||
16 | area. One of these hearings must be in Springfield. The | ||||||
17 | remaining 3 hearings must be outside of the Chicago | ||||||
18 | metropolitan area and Springfield. One of the hearings shall | ||||||
19 | be held within the county in which the subject matter of the | ||||||
20 | hearing is situated, if it is situated within one county. When | ||||||
21 | the outcome of a major case would have effects only within the | ||||||
22 | territory of one utility, the Commission shall hold at least 5 | ||||||
23 | public hearings at a variety of geographic locations within | ||||||
24 | the utility's territory. The locations shall be chosen to give | ||||||
25 | a wide variety of stakeholders the best opportunity to | ||||||
26 | participate in the hearings. The Commission may combine public |
| |||||||
| |||||||
1 | hearings for multiple major cases into one event at a single | ||||||
2 | venue, where practicable and compliant with all other | ||||||
3 | requirements. | ||||||
4 | (c) The public hearings shall be held at times that make | ||||||
5 | them accessible to the public, including to residents who work | ||||||
6 | during the day. The public hearings shall be held at locations | ||||||
7 | easily accessible, whenever possible, by public | ||||||
8 | transportation. The public hearings shall be held at locations | ||||||
9 | with wheelchair access. Upon request, a sign language | ||||||
10 | interpreter or other equivalent assistance for the hearing | ||||||
11 | impaired shall be provided. Upon request, translation services | ||||||
12 | shall be provided. Translation services may include real-time | ||||||
13 | telephone-based or other real-time translation services. All | ||||||
14 | written materials distributed at public hearings by the | ||||||
15 | Commission or utilities must be available at the hearing in | ||||||
16 | Spanish and, upon request and reasonable notice, other | ||||||
17 | languages. Call-in options shall be provided. | ||||||
18 | (d) At least 3 commissioners shall attend each public | ||||||
19 | hearing in person. | ||||||
20 | (e) Public hearings under this Section are subject to the | ||||||
21 | Open Meetings Act. | ||||||
22 | (f) The Commission may collect a reasonable fee from the | ||||||
23 | affected utility to offset the cost of public hearings, | ||||||
24 | including the cost of staffing. Within 30 days after the | ||||||
25 | effective date of this amendatory Act of the 102nd General | ||||||
26 | Assembly, the Commission shall set the amount of the fee and |
| |||||||
| |||||||
1 | shall update the amount of the fee no less often than every 3 | ||||||
2 | years thereafter. All fees charged and collected by the | ||||||
3 | Commission shall be paid promptly after the receipt of the | ||||||
4 | same, accompanied by a detailed statement thereof, into the | ||||||
5 | Public Utility Fund in the State treasury. All hearings before | ||||||
6 | the Commission or any commissioner or administrative law judge
| ||||||
7 | shall be held within the county in which the subject
matter of | ||||||
8 | the hearing is situated, or if the subject matter of the | ||||||
9 | hearing
is situated in more than one county, then at a place or | ||||||
10 | places designated
by the Commission, or agreed upon by the | ||||||
11 | parties in interest, within one or
more such counties, or at | ||||||
12 | the place which in the judgment of the Commission
shall be most | ||||||
13 | convenient to the parties to be heard.
| ||||||
14 | (Source: P.A. 100-840, eff. 8-13-18.)
| ||||||
15 | (220 ILCS 5/16-105.17 new) | ||||||
16 | Sec. 16-105.17. Multi-year integrated grid plan. | ||||||
17 | (a) Findings and Purpose. The General Assembly finds that | ||||||
18 | better aligning regulated utility operations, expenditures and | ||||||
19 | investments with public benefit goals including safety; | ||||||
20 | reliability; efficiency; affordability; equity; emissions | ||||||
21 | reductions; and expansion of clean distributed energy | ||||||
22 | resources, is critical to ensuring that Illinois residents and | ||||||
23 | businesses do not suffer economic and environmental harm from | ||||||
24 | the State's energy systems and to maximize the potential | ||||||
25 | benefits from utility expenditures. To that end, it is the |
| |||||||
| |||||||
1 | policy of the State of Illinois to promote inclusive, | ||||||
2 | comprehensive, transparent, cost-effective distribution | ||||||
3 | system planning that minimizes long-term costs for Illinois | ||||||
4 | customers and supports the achievement of state renewable | ||||||
5 | energy development and other clean energy, public health, and | ||||||
6 | environmental policy goals. Utility distribution system | ||||||
7 | expenditures, programs, investments and policies must be | ||||||
8 | evaluated in coordination with these goals. In particular, the | ||||||
9 | General Assembly finds that: | ||||||
10 | (1) Illinois' electricity distribution system must | ||||||
11 | cost-effectively integrate renewable energy resources, | ||||||
12 | including utility-scale renewable energy resources, | ||||||
13 | community renewable generation and distributed renewable | ||||||
14 | energy resources, support beneficial electrification | ||||||
15 | including electric vehicle use and adoption, promote | ||||||
16 | opportunities for third-party investment in | ||||||
17 | nontraditional, grid-related technologies and resources | ||||||
18 | such as batteries, solar photovoltaic panels and smart | ||||||
19 | thermostats, reduce energy usage generally and especially | ||||||
20 | during times of greatest reliance on fossil fuels, and | ||||||
21 | enhance customer engagement opportunities. | ||||||
22 | (2) Inclusive distribution system planning is an | ||||||
23 | essential tool for the Illinois Commerce Commission, | ||||||
24 | public utilities, and stakeholders to effectively | ||||||
25 | coordinate environmental, consumer, reliability and equity | ||||||
26 | goals at fair and reasonable costs, and for ensuring |
| |||||||
| |||||||
1 | transparent utility accountability for meeting those | ||||||
2 | goals. | ||||||
3 | (3) Any planning process should advance Illinois | ||||||
4 | energy policy goals while ensuring utility investments are | ||||||
5 | cost-effective. Such a process should maximize the sharing | ||||||
6 | of information, ensure robust stakeholder participation, | ||||||
7 | and recognize the responsibility of the utility to | ||||||
8 | ultimately manage the grid in a safe, reliable manner. | ||||||
9 | (4) Since the passage of the Energy Infrastructure | ||||||
10 | Modernization Act in 2011, Illinois consumers have | ||||||
11 | invested billions of dollars toward electric utility grid | ||||||
12 | modernization. In the absence of a transparent | ||||||
13 | distribution planning process, however, those investments | ||||||
14 | have not served customers' best interests, have failed to | ||||||
15 | promote the expansion of clean distributed energy | ||||||
16 | resources, and have failed to advance equity and | ||||||
17 | environmental justice. | ||||||
18 | (5) The traditional regulatory model rewards utilities | ||||||
19 | for increasing capital expenditures by basing allowed | ||||||
20 | revenues on the value of the rate base, resulting in an | ||||||
21 | incentive for ever-increasing capital investments. The | ||||||
22 | General Assembly is concerned that the existing regulatory | ||||||
23 | model does not align the interests of customers, the | ||||||
24 | State, and utilities because it does not encourage | ||||||
25 | utilities to systematically analyze and consider | ||||||
26 | nontraditional solutions to utility, customer and grid |
| |||||||
| |||||||
1 | needs that may be more efficient and cost effective, and | ||||||
2 | less environmentally harmful than traditional solutions. | ||||||
3 | Nontraditional solutions include distributed energy | ||||||
4 | resources owned or implemented by customers and | ||||||
5 | independent third parties, controllable load, beneficial | ||||||
6 | electrification, or rate design that rewards efficient | ||||||
7 | energy use, for example. | ||||||
8 | (6) The General Assembly also finds that Illinois | ||||||
9 | utilities' current processes for planning their | ||||||
10 | distribution system are not reasonably accessible or | ||||||
11 | transparent to individuals and communities who pay for and | ||||||
12 | are affected by the utilities' distribution system assets, | ||||||
13 | and that more inclusive and accessible distribution system | ||||||
14 | planning processes would be in the interests of all | ||||||
15 | Illinois residents, but especially those residents | ||||||
16 | historically most negatively impacted by unsafe or | ||||||
17 | environmentally harmful energy infrastructure. | ||||||
18 | (7) The General Assembly finds it would be beneficial | ||||||
19 | to require utilities to demonstrate how their spending | ||||||
20 | promotes identified state energy goals, such as | ||||||
21 | integrating renewable energy; empowering customers; | ||||||
22 | supporting electric vehicles, beneficial electrification | ||||||
23 | and energy storage; achieving equity goals; and | ||||||
24 | maintaining reliability. | ||||||
25 | The General Assembly therefore directs the utilities to | ||||||
26 | implement distribution system planning in order to accelerate |
| |||||||
| |||||||
1 | progress on Illinois clean energy and environmental goals and | ||||||
2 | hold electric utilities publicly accountable for their | ||||||
3 | performance. | ||||||
4 | (b) Definitions. As used in this Section: | ||||||
5 | "Commission" means the Illinois Commerce Commission. | ||||||
6 | "Demand response" means measures that decrease peak | ||||||
7 | electricity demand or shift demand from peak to off-peak | ||||||
8 | periods. | ||||||
9 | "Distributed energy resources" or "DER" means a wide range | ||||||
10 | of technologies that are located on the customer side of the | ||||||
11 | customer's electric meter and can provide value to the | ||||||
12 | distribution system, including, but not limited to, | ||||||
13 | distributed generation, energy storage, electric vehicles, and | ||||||
14 | demand response technologies. | ||||||
15 | "Environmental justice communities" means the definition | ||||||
16 | of that term based on existing methodologies and findings, | ||||||
17 | used and as may be updated by the Illinois Power Agency and its | ||||||
18 | Program Administrator in the Illinois Solar for All Program. | ||||||
19 | (c) Application. This Section applies to electric | ||||||
20 | utilities serving more than 500,000 retail customers in the | ||||||
21 | State. | ||||||
22 | (d) Objectives. The Multi-Year Integrated Grid Plan ("the | ||||||
23 | Plan") shall be designed to: | ||||||
24 | (1) ensure coordination of the State's renewable | ||||||
25 | energy goals, climate and environmental goals, utility | ||||||
26 | distribution system investments, and programs, policies |
| |||||||
| |||||||
1 | and investments described in this Section to maximize the | ||||||
2 | benefits of each while ensuring utility expenditures are | ||||||
3 | cost-effective; | ||||||
4 | (2) bring the benefits of grid modernization and clean | ||||||
5 | energy, including, but not limited to, deployment of | ||||||
6 | distributed energy resources, to ratepayers in | ||||||
7 | economically disadvantaged and environmental justice | ||||||
8 | communities throughout Illinois, with at least 40% of | ||||||
9 | these benefits being allocated to these ratepayers; | ||||||
10 | (3) enable greater customer engagement, empowerment, | ||||||
11 | and options for energy services; | ||||||
12 | (4) reduce grid congestion, minimize the time and | ||||||
13 | expense associated with interconnection, and increase the | ||||||
14 | capacity of the distribution grid to host increasing | ||||||
15 | levels of distributed energy resources, to facilitate | ||||||
16 | availability and development of distributed energy | ||||||
17 | resources, particularly in locations that enhance consumer | ||||||
18 | and environmental benefits; | ||||||
19 | (5) ensure opportunities for robust public | ||||||
20 | participation through open, transparent planning | ||||||
21 | processes; | ||||||
22 | (6) provide for the analysis of the cost-effectiveness | ||||||
23 | of proposed system investments, which takes into account | ||||||
24 | environmental costs and benefits; | ||||||
25 | (7) to the maximum extent possible, achieve or support | ||||||
26 | the achievement of Illinois environmental goals, including |
| |||||||
| |||||||
1 | those described in Section 9.10 of the Environmental | ||||||
2 | Protection Act, Section 1-75 of the Illinois Power Agency | ||||||
3 | Act, and emissions reductions required to improve the | ||||||
4 | health, safety and prosperity of all Illinois residents; | ||||||
5 | (8) support existing Illinois policy goals promoting | ||||||
6 | distributed energy resources and investments in renewable | ||||||
7 | energy resources; and | ||||||
8 | (9) provide sufficient public information to the | ||||||
9 | Commission, stakeholders, and market participants in order | ||||||
10 | to enable nonemitting customer-owned or third-party | ||||||
11 | distributed energy resources, acting individually or in | ||||||
12 | aggregate, to seamlessly and easily connect to the grid; | ||||||
13 | provide grid benefits; support grid services; and achieve | ||||||
14 | environmental outcomes, without necessarily requiring | ||||||
15 | utility ownership or unreasonable control over those | ||||||
16 | resources, and enable those resources to act as | ||||||
17 | alternatives to utility capital investments. | ||||||
18 | (e) Plan Development Stakeholder Process. No later than | ||||||
19 | February 1, 2022, the Illinois Commerce Commission shall | ||||||
20 | initiate a series of no fewer than 6 workshops which shall | ||||||
21 | inform the filing requirements for, and contents of, the | ||||||
22 | Multi-Year Integrated Grid Plans to be filed by electric | ||||||
23 | utilities subject to this Section. The series of workshops | ||||||
24 | shall be 11 months in length, concluding no later than | ||||||
25 | December 31, 2022. The workshops shall be facilitated by an | ||||||
26 | independent third-party facilitator selected by Staff of the |
| |||||||
| |||||||
1 | Illinois Commerce Commission and approved by the Executive | ||||||
2 | Director of the Illinois Commerce Commission. | ||||||
3 | (1) The workshops shall be designed to achieve the | ||||||
4 | following objectives: | ||||||
5 | (i) review utilities' past, current and planned | ||||||
6 | capital investments and all supporting data; | ||||||
7 | (ii) review utilities' historic and projected | ||||||
8 | load; | ||||||
9 | (iii) review how utilities plan to invest in their | ||||||
10 | distribution system in order to meet the system's | ||||||
11 | projected needs; | ||||||
12 | (iv) review locational data on reliability, | ||||||
13 | service quality, program participation and investment, | ||||||
14 | provided by the utilities; | ||||||
15 | (v) integrate input from diverse stakeholders, | ||||||
16 | including representatives from environmental justice | ||||||
17 | communities, geographically diverse communities, | ||||||
18 | low-income representatives, consumer representatives, | ||||||
19 | environmental representatives, organized labor | ||||||
20 | representatives, third-party technology providers, and | ||||||
21 | utilities; | ||||||
22 | (vi) consider proposals from utilities and | ||||||
23 | stakeholders on programs and policies necessary to | ||||||
24 | achieve the objectives in subsection (d) of this | ||||||
25 | Section; and | ||||||
26 | (vii) develop detailed filing requirements |
| |||||||
| |||||||
1 | applicable to each component of the utilities' | ||||||
2 | Multi-Year Integrated Grid Plan filings under | ||||||
3 | paragraph (2) of subsection (f) of this Section. | ||||||
4 | (2) To the extent any of the information in | ||||||
5 | subparagraphs (i) through (iv) of paragraph (1) of this | ||||||
6 | subsection is designated as confidential because | ||||||
7 | disclosure of such threatens the security of critical | ||||||
8 | system infrastructure, that information shall be redacted | ||||||
9 | as necessary but made available to parties who agree in | ||||||
10 | writing to abide by confidentiality agreements as approved | ||||||
11 | by the Office of General Counsel of the Illinois Commerce | ||||||
12 | Commission. Information appropriately designated as | ||||||
13 | confidential shall only include that which is critical to | ||||||
14 | system security, and shall not include that information in | ||||||
15 | which the electric utility claims a proprietary business | ||||||
16 | interest. | ||||||
17 | (3) Workshops should be organized and facilitated in a | ||||||
18 | manner that encourages representation from diverse | ||||||
19 | stakeholders, ensuring equitable opportunities for | ||||||
20 | participation, without requiring formal intervention or | ||||||
21 | representation by an attorney. Workshops should be held | ||||||
22 | during both day and evening hours, in a variety of | ||||||
23 | locations around the State, and should allow remote | ||||||
24 | participation. | ||||||
25 | (4) Utilities shall provide system data, including | ||||||
26 | data described in subparagraphs (i) through (iv) of |
| |||||||
| |||||||
1 | paragraph (1) of subsection (e), at a time prior to the | ||||||
2 | start of workshops to allow interested stakeholders to | ||||||
3 | reasonably review data before attending workshops. To | ||||||
4 | facilitate public feedback, the administrator facilitating | ||||||
5 | the workshops shall, throughout the workshop process, | ||||||
6 | develop questions for stakeholder input on topics being | ||||||
7 | considered. This may include, but is not limited to: | ||||||
8 | design of the workshop process, locational data and | ||||||
9 | information provided by utilities, alignment of plans, | ||||||
10 | programs, investments and objectives, and other topics as | ||||||
11 | deemed appropriate by the Commission facilitation staff. | ||||||
12 | Stakeholder feedback shall not be limited to these | ||||||
13 | questions. | ||||||
14 | (5) Workshops shall not be considered settlement | ||||||
15 | negotiations, compromise negotiations, or offers to | ||||||
16 | compromise for the purposes of Illinois Rule of Evidence | ||||||
17 | 408. All materials shared as a part of the workshop | ||||||
18 | process shall be made publicly available on a website made | ||||||
19 | available by the Commission. | ||||||
20 | (6) On conclusion of the workshops, the Commission | ||||||
21 | shall open a comment period that allows interested and | ||||||
22 | diverse stakeholders to submit comments and | ||||||
23 | recommendations regarding the utilities' Multi-Year | ||||||
24 | Integrated Grid Plan filings. Based on the workshop | ||||||
25 | process and stakeholder comments and recommendations | ||||||
26 | offered verbally or in writing during the workshops and in |
| |||||||
| |||||||
1 | writing during the comment period following the workshops, | ||||||
2 | the independent third-party facilitator shall prepare a | ||||||
3 | report, to be submitted to the Commission no later than | ||||||
4 | February 1, 2022, describing the stakeholders, | ||||||
5 | discussions, proposals, and areas of consensus and | ||||||
6 | disagreement from the workshop process, and making | ||||||
7 | recommendations to the Commission regarding the utilities' | ||||||
8 | Multi-Year Integrated Grid Plan filings. Interested | ||||||
9 | stakeholders shall have an opportunity to provide comment | ||||||
10 | on the independent third-party facilitator Report. | ||||||
11 | (7) Based on discussions in the workshops, the Staff | ||||||
12 | Report, and stakeholder comments and recommendations made | ||||||
13 | during and following the workshop process, the Commission | ||||||
14 | shall issue Initiating Orders no later than April 1, 2022, | ||||||
15 | requiring the electric utilities subject to this Section | ||||||
16 | to file the first Multi-Year Integrated Grid Plan no later | ||||||
17 | than June 1, 2022. The Initiating Orders shall specify the | ||||||
18 | requirements applicable to the utilities' Multi-Year | ||||||
19 | Integrated Grid Plans, above and beyond any requirements | ||||||
20 | described in paragraph (2) of subsection (f) of this | ||||||
21 | Section, and shall: | ||||||
22 | (i) analyze and identify specific programs, | ||||||
23 | policies, and initiatives, among those that were | ||||||
24 | raised during the workshop process, that the utilities | ||||||
25 | must implement as a part of their Multi-Year | ||||||
26 | Integrated Grid Plans; and |
| |||||||
| |||||||
1 | (ii) specify types of analyses and calculations | ||||||
2 | the utilities shall perform, as well as scenarios they | ||||||
3 | must analyze and (where applicable) specific | ||||||
4 | assumptions they must use in the development of their | ||||||
5 | Multi-Year Integrated Grid Plans. | ||||||
6 | (f) Multi-Year Integrated Grid Plan. | ||||||
7 | (1) Design Objectives. Pursuant to this subsection (f) | ||||||
8 | of this Section 1and the Initiating Orders of the | ||||||
9 | Commission, to be filed no later than April 1, 2022, and | ||||||
10 | for each subsequent Plan thereafter, each electric utility | ||||||
11 | subject to this Section shall, no later than June 1, 2022, | ||||||
12 | submit its first Multi-Year Integrated Grid Plan. While | ||||||
13 | each Multi-Year Integrated Grid Plan will include a | ||||||
14 | long-term, ten-year planning horizon, the Initial Plan | ||||||
15 | shall be in effect from June 1, 2023 through May 31, 2026. | ||||||
16 | Each Plan shall: | ||||||
17 | (i) incorporate requirements established by the | ||||||
18 | Commission in its Initiating Order; and | ||||||
19 | (ii) Propose programs, policies and plans designed | ||||||
20 | to optimize achievement of the objectives set forth in | ||||||
21 | subsection (d) of this Section. | ||||||
22 | To the extent practicable and reasonable, all | ||||||
23 | programs, policies and initiatives proposed by the utility | ||||||
24 | in its plan should be informed by stakeholder input | ||||||
25 | received during the workshop process pursuant to | ||||||
26 | subsection (e) of this Section. Where specific stakeholder |
| |||||||
| |||||||
1 | input has not been incorporated in proposed programs, | ||||||
2 | policies, and plans, the electric utility shall provide an | ||||||
3 | explanation as to why that input was not incorporated. | ||||||
4 | (2) Plan Components. In order to ensure electric | ||||||
5 | utilities' ability to meet the goals and objectives set | ||||||
6 | forth in this Section, the Multi-Year Integrated Grid | ||||||
7 | Plans must include, at minimum, the following information: | ||||||
8 | (i) Baseline Distribution System Data. A detailed | ||||||
9 | description of the current operating conditions for | ||||||
10 | the distribution system, including a detailed | ||||||
11 | description, with supporting data, of: system | ||||||
12 | conditions, including asset age and useful life, | ||||||
13 | ratings, loadings, and other characteristics, as well | ||||||
14 | as: | ||||||
15 | (A) modeling software currently used and | ||||||
16 | planned software deployments; | ||||||
17 | (B) the distribution system annual loss | ||||||
18 | percentage for the prior year (average of 12 | ||||||
19 | monthly loss percentages); | ||||||
20 | (C) the maximum hourly coincident load (kW) | ||||||
21 | for the distribution system as measured at the | ||||||
22 | interface between the transmission and | ||||||
23 | distribution system; | ||||||
24 | (D) total distribution substation capacity in | ||||||
25 | kVa; | ||||||
26 | (E) total distribution transformer capacity in |
| |||||||
| |||||||
1 | kVa; | ||||||
2 | (F) total miles of overhead distribution wire; | ||||||
3 | (G) total miles of underground distribution | ||||||
4 | wire; | ||||||
5 | (H) current and expected reliability measures; | ||||||
6 | (I) detailed listing of all high-voltage and | ||||||
7 | low-voltage substations and circuits including, at | ||||||
8 | minimum, the following for each substation and | ||||||
9 | circuit: age, remaining useful life, capacity | ||||||
10 | rating, historical peak demand, historical | ||||||
11 | interval data, historic annual peak load growth, | ||||||
12 | forecast future annual peak load growth, | ||||||
13 | historical outages and voltage violations, | ||||||
14 | distribution system reliability events, | ||||||
15 | anticipated or modeled violations, existing and | ||||||
16 | planned visibility and measurement (feeder-level | ||||||
17 | and time) data, monitoring and control | ||||||
18 | capabilities, daytime minimum load, and other | ||||||
19 | characteristics as necessary to allow the | ||||||
20 | Commission and stakeholders to analyze system data | ||||||
21 | for the purposes of achieving the goals of this | ||||||
22 | Section; | ||||||
23 | (J) distributed energy resource deployment by | ||||||
24 | type, size, customer class, and geographic | ||||||
25 | dispersion; and | ||||||
26 | (K) total number and nameplate capacity of |
| |||||||
| |||||||
1 | distributed energy resources that completed | ||||||
2 | interconnection to the system in each of the prior | ||||||
3 | 5 years, including average time to process | ||||||
4 | interconnection applications for each type of | ||||||
5 | resource and interconnection level. | ||||||
6 | (ii) Distribution System Planning Process. A | ||||||
7 | detailed description of the electric utility's | ||||||
8 | distribution system planning process including, but | ||||||
9 | not limited to: any process required by a regional | ||||||
10 | transmission organization; forecasts, inputs and | ||||||
11 | assumptions of future total load and future peak | ||||||
12 | demand; planned infrastructure investments and | ||||||
13 | underlying assumptions regarding the necessity of such | ||||||
14 | investments; the electric utility's identification of | ||||||
15 | investments associated with the Commission's renewable | ||||||
16 | energy access plan, pursuant to Section 8-512 of this | ||||||
17 | Act; and other relevant details for the ten-year | ||||||
18 | planning horizon. | ||||||
19 | (iii) Hosting Capacity and Interconnection | ||||||
20 | Analysis. A hosting capacity analysis which includes a | ||||||
21 | detailed and current analysis of how much capacity is | ||||||
22 | available on each substation, circuit and node for | ||||||
23 | integrating renewable and distributed energy resources | ||||||
24 | as allowed by thermal ratings, protection system | ||||||
25 | limits, power quality standards, and safety standards. | ||||||
26 | This section must include: circuit-level maps and |
| |||||||
| |||||||
1 | downloadable data sets for public use; an assessment | ||||||
2 | of how anticipated investments (for as far into the | ||||||
3 | future as the utility has planned investments) will | ||||||
4 | impact the analysis; and a narrative discussion of how | ||||||
5 | the hosting capacity analysis advances customer-sited | ||||||
6 | distributed energy resources, including in particular | ||||||
7 | electric vehicles, electric storage systems and | ||||||
8 | photovoltaic resources. | ||||||
9 | (iv) Scenario Analysis and Load Forecasting. | ||||||
10 | Detailed load forecasts for the following 10 years at | ||||||
11 | the substation and circuit level, using dynamic load | ||||||
12 | forecasting (forecasting using multiple scenarios and | ||||||
13 | probabilistic planning) and accounting for the impacts | ||||||
14 | of anticipated energy efficiency programs, demand | ||||||
15 | response programs, distributed energy resources, | ||||||
16 | electric vehicle adoption, and other known or | ||||||
17 | anticipated variables. This section shall also include | ||||||
18 | a detailed description of the electric utility's | ||||||
19 | anticipated capacity, thermal, voltage or other grid | ||||||
20 | constraints for the following 3-year period, including | ||||||
21 | modifications or upgrades to the system required to | ||||||
22 | accommodate anticipated future load and distributed | ||||||
23 | energy resource adoption. This section shall also | ||||||
24 | include a discussion of the development of base-case, | ||||||
25 | medium and high scenarios of distributed energy | ||||||
26 | resource deployment, reflecting a reasonable mix of |
| |||||||
| |||||||
1 | individual distributed energy resource adoption and | ||||||
2 | aggregated or bundled distributed energy resource | ||||||
3 | service types, and detailed information on the | ||||||
4 | methodologies used to develop those scenarios. | ||||||
5 | (v) Grid Value Analysis. An evaluation of the | ||||||
6 | short- and long-run benefits and costs of distributed | ||||||
7 | energy resources located on the distribution system, | ||||||
8 | including, but not limited to, the locational, | ||||||
9 | temporal, and performance-based benefits and costs of | ||||||
10 | distributed energy resources. This evaluation shall be | ||||||
11 | based on the reductions or increases in local | ||||||
12 | generation capacity needs, avoided or increased | ||||||
13 | investments in distribution infrastructure, avoided or | ||||||
14 | increased line-losses, voltage support and ancillary | ||||||
15 | services, safety benefits, reliability benefits, | ||||||
16 | resilience benefits, and any other savings, benefits | ||||||
17 | or value the distributed energy resources individually | ||||||
18 | or in aggregate provide to the distribution system or | ||||||
19 | costs to ratepayers of the electric utility. The | ||||||
20 | utility shall use the results of this evaluation to | ||||||
21 | inform its analysis of Solution Sourcing | ||||||
22 | Opportunities, including nonwires alternatives, under | ||||||
23 | subparagraph (H) of paragraph (2) subsection (f) of | ||||||
24 | this Section. The Commission may use the data produced | ||||||
25 | through this evaluation to, among other use-cases, | ||||||
26 | establish tariffs and compensation for distributed |
| |||||||
| |||||||
1 | energy resources interconnecting to the utility's | ||||||
2 | distribution system, including rebates provided by the | ||||||
3 | electric utility pursuant to Section 16-107.6 of this | ||||||
4 | Act. | ||||||
5 | (vi) Utility System Investment Plan. A detailed | ||||||
6 | description of historic distribution system capital | ||||||
7 | investments for the preceding 5 years and planned | ||||||
8 | capital investments for the following 10 years, as | ||||||
9 | well as load forecasts and all other data supporting | ||||||
10 | those investments. This section shall include | ||||||
11 | projected costs, scope of work, prioritization of | ||||||
12 | work, sequencing of investments, and explanations of | ||||||
13 | how planned investments will meet the objectives | ||||||
14 | described in subsection (d). | ||||||
15 | (vii) Utility Operations Plan. A detailed | ||||||
16 | description of historic distribution system operations | ||||||
17 | and maintenance expenditures for the preceding 5 years | ||||||
18 | and of planned operations and maintenance expenditures | ||||||
19 | for the following 10 years, as well as the data, | ||||||
20 | reasoning and explanation supporting planned | ||||||
21 | expenditures. This section shall also include a | ||||||
22 | description of total costs spent on distributed energy | ||||||
23 | resource interconnection review and commissioning | ||||||
24 | (including application review, responding to | ||||||
25 | inquiries, metering, testing and other costs), as well | ||||||
26 | as interconnection fees and charges to customers and |
| |||||||
| |||||||
1 | installers of distributed energy resources, including | ||||||
2 | (application, metering and make-ready fees), broken | ||||||
3 | down by type of generation and category or level of | ||||||
4 | interconnection review, over each of the preceding 5 | ||||||
5 | years. | ||||||
6 | (viii) Solution Sourcing Opportunities. | ||||||
7 | Identification of potential cost-effective solutions | ||||||
8 | from nontraditional and third-party owned investments | ||||||
9 | that could meet anticipated grid needs, including, but | ||||||
10 | not limited to: distributed energy resource | ||||||
11 | procurements, tariffs or contracts, programmatic | ||||||
12 | solutions, rate design options, technologies or | ||||||
13 | programs that facilitate load flexibility, nonwires | ||||||
14 | alternatives, and other solutions that are intended to | ||||||
15 | meet the objectives described at subsection (d). It is | ||||||
16 | the policy of this State that cost-effective | ||||||
17 | third-party or customer-owned distributed energy | ||||||
18 | resources shall be prioritized because those resources | ||||||
19 | create robust competition and customer choice. | ||||||
20 | (ix) Interoperability Plan. A detailed description | ||||||
21 | of the utility's interoperability plan, which must | ||||||
22 | describe the manner in which the electric utility's | ||||||
23 | current and planned distribution system investments | ||||||
24 | will work together and exchange information and data, | ||||||
25 | the extent to which the utility is implementing open | ||||||
26 | standards and interfaces with third-party distributed |
| |||||||
| |||||||
1 | energy resource owners and aggregators, and the | ||||||
2 | utility's plan for interoperability testing and | ||||||
3 | certification. | ||||||
4 | (x) Flexibility Analysis. A detailed analysis of | ||||||
5 | current and projected flexible resources, including | ||||||
6 | resource type, size (in MW and MWh), location and | ||||||
7 | environmental impact, as well as anticipated needs | ||||||
8 | that can be met using flexible resources (including, | ||||||
9 | but not limited to, peak load reduction, managing ramp | ||||||
10 | needs, storing excess generation, and avoiding | ||||||
11 | unnecessary transmission expenditures). | ||||||
12 | (xi) Equity Requirements. A description of, | ||||||
13 | exclusive of low-income rate relief programs and other | ||||||
14 | income-qualified programs, how the utility is ensuring | ||||||
15 | that at least 40% of benefits from programs, policies, | ||||||
16 | and initiatives proposed in their Multi-Year | ||||||
17 | Integrated Grid Plan will be directed to ratepayers in | ||||||
18 | low-income and environmental justice communities. This | ||||||
19 | should include locational reporting, at the | ||||||
20 | census-tract level, on distribution system | ||||||
21 | investments, program participation, and reliability | ||||||
22 | and service quality data. | ||||||
23 | (3) To the extent any information in utilities' | ||||||
24 | Multi-Year Integrated Grid Plans is designated as | ||||||
25 | confidential because disclosure of such threatens the | ||||||
26 | security of critical system infrastructure, that |
| |||||||
| |||||||
1 | information shall be redacted as necessary but made | ||||||
2 | available to parties who agree in writing to abide by | ||||||
3 | confidentiality requirements as approved by the Office of | ||||||
4 | General Counsel of the Illinois Commerce Commission. | ||||||
5 | Information appropriately designated as confidential shall | ||||||
6 | only include that which is critical to system security, | ||||||
7 | and shall not include that information in which the | ||||||
8 | electric utility claims only a proprietary business | ||||||
9 | interest. | ||||||
10 | (4) Comprehensive Consideration of Related Plans, | ||||||
11 | Tariffs, Programs and Policies. It is the policy of this | ||||||
12 | State that holistic consideration of all related | ||||||
13 | investments, planning processes, tariffs, rate design | ||||||
14 | options, programs, and other utility policies and plans | ||||||
15 | shall be required. To that end, the Commission shall | ||||||
16 | consider, comprehensively, the impact of all related | ||||||
17 | plans, tariffs, programs and policies on the Plan and on | ||||||
18 | each other, including: | ||||||
19 | (i) time-of-use pricing program, pursuant to | ||||||
20 | Section 16-107.7 of this Act, hourly pricing program, | ||||||
21 | pursuant to Section 16-107 of this Act, and any other | ||||||
22 | time-variant or dynamic pricing program; | ||||||
23 | (ii) distributed generation rebate, pursuant to | ||||||
24 | Section 16-107.6 of this Act; | ||||||
25 | (iii) net electricity metering, pursuant to | ||||||
26 | Section 16-107.5 of this Act; |
| |||||||
| |||||||
1 | (iv) energy efficiency programs, pursuant to | ||||||
2 | Section 8-103B of this Act; | ||||||
3 | (v) Electric Vehicle Access for All programs, | ||||||
4 | pursuant to Section 30 of the Electric Vehicle Act; | ||||||
5 | (vi) beneficial electrification programs, pursuant to Section | ||||||
6 | 16-107.8 of this Act;
(vii) Clean Energy Empowerment Zone | ||||||
7 | Pilot Projects, pursuant to Section 16-108.9 of this Act; | ||||||
8 | (viii) Equitable Energy Upgrade Program, pursuant | ||||||
9 | to Section 16-111.10 of this Act; and | ||||||
10 | (ix) other plans, programs and policies that are | ||||||
11 | relevant to distribution grid investments, costs | ||||||
12 | planning, etc. | ||||||
13 | The Plan shall comprehensively detail the relationship | ||||||
14 | between these plans, tariffs, and programs and the Plan | ||||||
15 | and to the electric utility's achievement of the | ||||||
16 | objectives in subsection (d). The Plan shall be designed | ||||||
17 | to coordinate each of these plans, programs and tariffs | ||||||
18 | with the electric utility's long-term distribution system | ||||||
19 | investment planning in order to maximize the benefits of | ||||||
20 | each. | ||||||
21 | (5) Hearing Procedure. The Initiating Order for the | ||||||
22 | Initial Multi-Year Integrated Grid Plan, as well as each | ||||||
23 | electric utility's subsequent Integrated Grid Plans under | ||||||
24 | subsection (g), shall begin a contested proceeding as | ||||||
25 | described in subsection d of Section 10-101.1 of this Act. | ||||||
26 | (i) In evaluating a utility's Plan, the Commission |
| |||||||
| |||||||
1 | shall consider, at minimum, whether the Plan: | ||||||
2 | (A) meets the objectives of this Section; | ||||||
3 | (B) includes the components in paragraph (2) | ||||||
4 | of subsection (f) of this Section; | ||||||
5 | (C) incorporates input from interested | ||||||
6 | stakeholders, including parties and people who | ||||||
7 | offer public comment; | ||||||
8 | (D) considers nontraditional and | ||||||
9 | nonutility-owned investment alternatives that can | ||||||
10 | meet grid needs and provide additional benefits | ||||||
11 | (including consumer, economic and environmental | ||||||
12 | benefits) beyond comparable, traditional | ||||||
13 | utility-planned capital investments; | ||||||
14 | (E) equitably benefits environmental justice | ||||||
15 | communities; and | ||||||
16 | (F) maximizes consumer, environmental, | ||||||
17 | economic and community benefits. | ||||||
18 | (ii) The Commission, after notice and hearing, | ||||||
19 | shall modify each electric utility's Plan as necessary | ||||||
20 | to comply with the objectives of this Section. The | ||||||
21 | Commission may approve, or modify and approve, a Plan | ||||||
22 | only if it finds that the Plan is reasonable, complies | ||||||
23 | with the objectives and requirements of this Section, | ||||||
24 | and reasonably incorporates input from parties. The | ||||||
25 | Commission's approval of any Plan does not constitute | ||||||
26 | approval, or any adjudication of the prudence or |
| |||||||
| |||||||
1 | reasonableness, of any expenditures associated with | ||||||
2 | the Plan. The Commission may reject each electric | ||||||
3 | utility's Plan if it finds that the Plan does not | ||||||
4 | comply with the objectives and requirements of this | ||||||
5 | Section. Where the Commission enters an Order | ||||||
6 | rejecting a Plan, the utility must refile a Plan | ||||||
7 | within 3 months after that Order, and until the | ||||||
8 | Commission approves a Plan, the utility's existing | ||||||
9 | Plan will remain in effect. | ||||||
10 | (iii) For all Integrated Grid Plan filings, the | ||||||
11 | Commission shall enter an order no later than 9 months | ||||||
12 | after the date of filing. | ||||||
13 | (iv) Each electric utility shall file its proposed | ||||||
14 | Initial Multi-Year Integrated Grid Plan no later than | ||||||
15 | June 1, 2022. Prior to that date and following the | ||||||
16 | Initiating Order, the Commission shall initiate a case | ||||||
17 | management conference and shall take any appropriate | ||||||
18 | steps to begin meaningful consideration of issues, | ||||||
19 | including enabling interested parties to begin | ||||||
20 | conducting discovery. | ||||||
21 | (6) Implementation Plans. | ||||||
22 | (i) As part of its order approving a utility's | ||||||
23 | Multi-Year Integrated Grid Plan, including any | ||||||
24 | modifications required, the Commission shall create a | ||||||
25 | subsequent implementation plan docket, or multiple | ||||||
26 | implementation plan dockets, if the Commission |
| |||||||
| |||||||
1 | determines that multiple dockets would be preferable, | ||||||
2 | to consider the utility's detailed plans for: | ||||||
3 | (A) acquiring the level of demand response | ||||||
4 | resources specified in its approved Multi-Year | ||||||
5 | Integrated Grid Plan; | ||||||
6 | (B) acquiring the level of load flexibility or | ||||||
7 | energy storage resources specified in its approved | ||||||
8 | Multi-Year Integrated Grid Plan; | ||||||
9 | (C) achieving the level of transportation, | ||||||
10 | building and industry electrification specified in | ||||||
11 | its approved Multi-Year Integrated Grid Plan, or | ||||||
12 | implementing optimized charging or other | ||||||
13 | beneficial electrification programs; | ||||||
14 | (D) developing any of the plans, tariffs, | ||||||
15 | programs or policies required by paragraph (4) of | ||||||
16 | subsection (e) and additionally required by the | ||||||
17 | Commission in its Order regarding the Multi-Year | ||||||
18 | Integrated Grid Plan; and | ||||||
19 | (E) developing the Hosting Capacity and | ||||||
20 | Interconnection Analysis required by paragraph (2) | ||||||
21 | of subsection (f); | ||||||
22 | (F) developing a process to screen, analyze | ||||||
23 | and procure nonwires alternatives; and | ||||||
24 | (G) addressing any other topic or resource | ||||||
25 | area covered by the utility's Multi-Year | ||||||
26 | Integrated Grid Plan for which the Commission |
| |||||||
| |||||||
1 | considers it important and necessary to receive | ||||||
2 | and approve a greater level of detail regarding | ||||||
3 | the utility's plans. | ||||||
4 | (ii) Each implementation plan shall include a | ||||||
5 | detailed explanation of: | ||||||
6 | (A) the projected costs (investments and | ||||||
7 | expenses) and benefits of each plan or program to | ||||||
8 | be considered in the implementation plan, | ||||||
9 | including related financial incentives, marketing, | ||||||
10 | and administration; | ||||||
11 | (B) categories and sub-categories of resources | ||||||
12 | or services to be acquired to achieve the | ||||||
13 | objectives in the Multi-Year Integrated Grid Plan | ||||||
14 | (for example, the implementation plan for demand | ||||||
15 | response shall identify the different types of | ||||||
16 | demand response resources that will collectively | ||||||
17 | be pursued to achieve the total level of demand | ||||||
18 | response capability approved in the Plan); | ||||||
19 | (C) the marketing, customer recruitment and | ||||||
20 | engagement, financial incentive, procurement | ||||||
21 | approach and other important elements of the plan | ||||||
22 | or program, including efforts to cultivate | ||||||
23 | qualifying customers in low-income and | ||||||
24 | environmental justice communities; | ||||||
25 | (D) an explanation of how the proposed plans | ||||||
26 | or programs will be able to achieve the objective |
| |||||||
| |||||||
1 | in the Multi-Year Integrated Grid Plan; | ||||||
2 | (E) an analysis of how, exclusive of | ||||||
3 | low-income rate relief and other income-qualified | ||||||
4 | programs, the implementation plan will contribute | ||||||
5 | to the Multi-year Integrated Grid Plan's | ||||||
6 | requirement that at least 40% of benefits from | ||||||
7 | programs, policies, and initiatives will be | ||||||
8 | directed to low-income and environmental justice | ||||||
9 | communities; | ||||||
10 | (F) a discussion of any risk in the utility's | ||||||
11 | ability to acquire the planned levels of resource | ||||||
12 | acquisition within the approved budget, as well as | ||||||
13 | contingency plans for addressing such risks; and | ||||||
14 | (G) a plan for periodic (but at least | ||||||
15 | quarterly) engagement with stakeholders on the | ||||||
16 | rollout and implementation of the implementation | ||||||
17 | plans in order to inform them of plans and | ||||||
18 | progress, as well as to solicit input on | ||||||
19 | opportunities for improving plans and | ||||||
20 | implementation or on ways to modify plans as | ||||||
21 | needed. | ||||||
22 | (iii) The implementation plan dockets shall be | ||||||
23 | contested proceedings, with opportunities for | ||||||
24 | discovery and filing of testimony by interested | ||||||
25 | stakeholders. Each utility shall file its | ||||||
26 | implementation plans within 90 days after approval, |
| |||||||
| |||||||
1 | with any modifications, of its Multi-Year Integrated | ||||||
2 | Grid Plan. | ||||||
3 | (g) Subsequent Multi-Year Integrated Grid Plans. No later | ||||||
4 | than June 1, 2025 and every 4 years thereafter, each electric | ||||||
5 | utility subject to this Section shall file a new Multi-Year | ||||||
6 | Integrated Grid Plan for the subsequent 4 delivery years after | ||||||
7 | the completion of the then-effective Plan. Each Plan shall | ||||||
8 | meet the requirements described in subsection (f), and shall | ||||||
9 | be preceded by a workshop process which meets the same | ||||||
10 | requirements described in subsection (e). If appropriate, the | ||||||
11 | Commission may require additional implementation dockets to | ||||||
12 | follow Subsequent Multi-Year Integrated Grid Plan filings.
| ||||||
13 | (220 ILCS 5/16-107)
| ||||||
14 | Sec. 16-107. Real-time pricing.
| ||||||
15 | (a) Each electric utility shall file, on or before May 1,
| ||||||
16 | 1998, a tariff or tariffs which allow nonresidential retail
| ||||||
17 | customers in the electric utility's service area to elect
| ||||||
18 | real-time pricing beginning October 1, 1998.
| ||||||
19 | (b) Each electric utility shall file, on or before May 1,
| ||||||
20 | 2000, a tariff or tariffs which allow residential retail
| ||||||
21 | customers in the electric utility's service area to elect
| ||||||
22 | real-time pricing beginning October 1, 2000.
| ||||||
23 | (b-5) Each electric utility shall file a tariff or tariffs | ||||||
24 | allowing residential retail customers in the electric | ||||||
25 | utility's service area to elect real-time pricing beginning |
| |||||||
| |||||||
1 | January 2, 2007. The Commission may, after notice and hearing, | ||||||
2 | approve the tariff or tariffs. A tariff or tariffs approved | ||||||
3 | pursuant to this subsection (b-5) shall, at a minimum, | ||||||
4 | describe (i) the methodology for determining the market price | ||||||
5 | of energy to be reflected in the real-time rate and (ii) the | ||||||
6 | manner in which customers who elect real-time pricing will be | ||||||
7 | provided with ready access to hourly market prices, including, | ||||||
8 | but not limited to, day-ahead hourly energy prices. A customer | ||||||
9 | who elects real-time pricing under a tariff approved under | ||||||
10 | this subsection (b-5) and thereafter terminates the election | ||||||
11 | shall not return to taking service under the tariff for a | ||||||
12 | period of 12 months following the date on which the customer | ||||||
13 | terminated real-time pricing. However, this limitation shall | ||||||
14 | cease to apply on such date that the provision of electric | ||||||
15 | power and energy is declared competitive under Section 16-113 | ||||||
16 | of this Act for the customer group or groups to which this | ||||||
17 | subsection (b-5) applies. | ||||||
18 | A proceeding under this subsection (b-5) may not exceed | ||||||
19 | 120 days in length.
| ||||||
20 | (b-10) Each electric utility providing real-time pricing | ||||||
21 | pursuant to subsection (b-5) shall install a meter capable of | ||||||
22 | recording hourly interval energy use at the service location | ||||||
23 | of each customer that elects real-time pricing pursuant to | ||||||
24 | this subsection. | ||||||
25 | (b-15) If the Commission issues an order pursuant to | ||||||
26 | subsection (b-5), the affected electric utility shall contract |
| |||||||
| |||||||
1 | with an entity not affiliated with the electric utility to | ||||||
2 | serve as a program administrator to develop and implement a | ||||||
3 | program to provide consumer outreach, enrollment, and | ||||||
4 | education concerning real-time pricing and to establish and | ||||||
5 | administer an information system and technical and other | ||||||
6 | customer assistance that is necessary to enable customers to | ||||||
7 | manage electricity use. The program administrator: (i) shall | ||||||
8 | be selected and compensated by the electric utility, subject | ||||||
9 | to Commission approval; (ii) shall have demonstrated technical | ||||||
10 | and managerial competence in the development and | ||||||
11 | administration of demand management programs; and (iii) may | ||||||
12 | develop and implement risk management, energy efficiency, and | ||||||
13 | other services related to energy use management for which the | ||||||
14 | program administrator shall be compensated by participants in | ||||||
15 | the program receiving such services. The electric utility | ||||||
16 | shall provide the program administrator with all information | ||||||
17 | and assistance necessary to perform the program | ||||||
18 | administrator's duties, including, but not limited to, | ||||||
19 | customer, account, and energy use data. The electric utility | ||||||
20 | shall permit the program administrator to include inserts in | ||||||
21 | residential customer bills 2 times per year to assist with | ||||||
22 | customer outreach and enrollment. | ||||||
23 | The program administrator shall submit an annual report to | ||||||
24 | the electric utility no later than April 1 of each year | ||||||
25 | describing the operation and results of the program, including | ||||||
26 | information concerning the number and types of customers using |
| |||||||
| |||||||
1 | real-time pricing, changes in customers' energy use patterns, | ||||||
2 | an assessment of the value of the program to both participants | ||||||
3 | and non-participants, and recommendations concerning | ||||||
4 | modification of the program and the tariff or tariffs filed | ||||||
5 | under subsection (b-5). This report shall be filed by the | ||||||
6 | electric utility with the Commission within 30 days of receipt | ||||||
7 | and shall be available to the public on the Commission's web | ||||||
8 | site. | ||||||
9 | (b-20) The Commission shall monitor the performance of | ||||||
10 | programs established pursuant to subsection (b-15) and shall | ||||||
11 | order the termination or modification of a program if it | ||||||
12 | determines that the program is not, after a reasonable period | ||||||
13 | of time for development not to exceed 4 years, resulting in net | ||||||
14 | benefits to the residential customers of the electric utility.
| ||||||
15 | (b-25) An electric utility shall be entitled to recover | ||||||
16 | reasonable costs incurred in complying with this Section, | ||||||
17 | provided that recovery of the costs is fairly apportioned | ||||||
18 | among its residential customers as provided in this subsection | ||||||
19 | (b-25). The electric utility may apportion costs on the | ||||||
20 | residential customers who elect real-time pricing, but may | ||||||
21 | also impose some of the costs of real-time pricing on | ||||||
22 | customers who do not elect real-time pricing.
| ||||||
23 | (c) The electric utility's tariff or tariffs filed
| ||||||
24 | pursuant to this Section shall be subject to Article IX.
| ||||||
25 | (d) This Section does not apply to any electric utility | ||||||
26 | providing service to 100,000 or fewer customers.
|
| |||||||
| |||||||
1 | (e) Eligible customers shall include, but are not limited | ||||||
2 | to, customers participating in net electricity metering under | ||||||
3 | the terms of Section 16-107.5 of this Act. | ||||||
4 | (Source: P.A. 99-906, eff. 6-1-17 .)
| ||||||
5 | (220 ILCS 5/16-107.5)
| ||||||
6 | Sec. 16-107.5. Net electricity metering. | ||||||
7 | (a) The General Assembly Legislature finds and declares | ||||||
8 | that a program to provide net electricity
metering, as defined | ||||||
9 | in this Section,
for eligible customers can encourage private | ||||||
10 | investment in renewable energy
resources, stimulate
economic | ||||||
11 | growth, enhance the continued diversification of Illinois' | ||||||
12 | energy
resource mix, and protect
the Illinois environment. The | ||||||
13 | General Assembly further finds and declares that ensuring a | ||||||
14 | smooth, predictable transition from full net metering of the | ||||||
15 | retail electricity rate to the distributed generation rebate | ||||||
16 | described in Section 16-107.6 of this Act is important to | ||||||
17 | achieve these legislative goals. In implementing the | ||||||
18 | investigation discussed in subsection (e) of Section 16-107.6 | ||||||
19 | of this Act and the transition discussed in subsection (n) of | ||||||
20 | this Section 16-107.5, the Commission shall ensure that | ||||||
21 | distributed generation customers are fairly compensated for | ||||||
22 | the benefits and services that customer-sited distributed | ||||||
23 | generation provides and that the distributed generation market | ||||||
24 | in Illinois continues to experience stable growth for both | ||||||
25 | small and large customers.
|
| |||||||
| |||||||
1 | (b) As used in this Section : , | ||||||
2 | (i) " Community community renewable generation project" has | ||||||
3 | shall have the meaning set forth in Section 1-10 of the | ||||||
4 | Illinois Power Agency Act . ; | ||||||
5 | "Delivery service provider" means a public utility as | ||||||
6 | defined in subsection (a) of Section 3-105 of this Act. | ||||||
7 | "Electricity provider" means an electric utility or | ||||||
8 | alternative retail electric supplier providing energy supply. | ||||||
9 | (ii) " Eligible eligible customer" means a retail
customer | ||||||
10 | or retail customers with that owns or operates a
solar, wind, | ||||||
11 | or other eligible renewable electrical generating facility | ||||||
12 | with a rated capacity of not more than
2,000 kilowatts that is
| ||||||
13 | located on the customer's or customers' side of the billing | ||||||
14 | meter premises and is intended primarily to offset the | ||||||
15 | customer's or customers'
own current or future electrical | ||||||
16 | requirements when accounting for shading, orientation, and | ||||||
17 | other siting factors that can reasonably be expected to alter | ||||||
18 | an eligible renewable electrical generating facility's | ||||||
19 | generation output. An eligible customer does not need to own | ||||||
20 | the solar, wind, or other eligible renewable electrical | ||||||
21 | generating facility. Subscribers to community renewable | ||||||
22 | generation projects shall also be considered eligible | ||||||
23 | customers for the purpose of this Section, including | ||||||
24 | subscribers to community renewable generation projects that | ||||||
25 | are larger than 2,000 kilowatts. ; (iii) "electricity provider" | ||||||
26 | means an electric utility or alternative retail electric |
| |||||||
| |||||||
1 | supplier; | ||||||
2 | (iv) " Eligible eligible renewable electrical generating | ||||||
3 | facility" means a generator , which may include the co-location | ||||||
4 | of an energy storage system, that is interconnected under | ||||||
5 | rules adopted by the Commission and is powered by solar | ||||||
6 | electric energy, wind, dedicated crops grown for electricity | ||||||
7 | generation, agricultural residues, untreated and unadulterated | ||||||
8 | wood waste, landscape trimmings, livestock manure, anaerobic | ||||||
9 | digestion of livestock or food processing waste, fuel cells or | ||||||
10 | microturbines powered by renewable fuels, or hydroelectric | ||||||
11 | energy . ; | ||||||
12 | "Energy storage system" means commercially available | ||||||
13 | technology that is capable of absorbing energy and storing it | ||||||
14 | for a period of time for use at a later time, including, but | ||||||
15 | not limited to, electrochemical, thermal, and | ||||||
16 | electromechanical technologies, and may be interconnected on | ||||||
17 | the customer's side of the billing meter or interconnected via | ||||||
18 | its own meter. | ||||||
19 | "Future electrical requirements" means the reasonable | ||||||
20 | anticipation of load growth, such as from the addition of an | ||||||
21 | electric vehicle, the addition of electric space heating or | ||||||
22 | water heating, modeled electrical requirements upon occupation | ||||||
23 | of a new or vacant property, as well as other reasonable | ||||||
24 | expectations of future electrical use. | ||||||
25 | (v) " Net net electricity metering" (or "net metering") | ||||||
26 | means the
measurement, during the
billing period applicable to |
| |||||||
| |||||||
1 | an eligible customer, of the net amount of
electricity | ||||||
2 | supplied by an
electricity provider to the customer customer's | ||||||
3 | premises or provided to the electricity provider by the | ||||||
4 | customer or subscriber . ; | ||||||
5 | "Statewide net metering penetration" means the sum of | ||||||
6 | nameplate capacity of all net metering facilities in the | ||||||
7 | State, excluding community renewable generation projects, | ||||||
8 | divided by the sum of peak demand of electricity delivered by | ||||||
9 | each delivery service provider (with the peak identified | ||||||
10 | independently for each provider) in the State during the | ||||||
11 | previous year. | ||||||
12 | (vi) " Subscriber subscriber " has shall have the meaning as | ||||||
13 | set forth in Section 1-10 of the Illinois Power Agency Act . ; | ||||||
14 | and | ||||||
15 | (vii) " Subscription subscription " has shall have the | ||||||
16 | meaning set forth in Section 1-10 of the Illinois Power Agency | ||||||
17 | Act.
| ||||||
18 | (c) A net metering facility shall be equipped with | ||||||
19 | metering equipment that can measure the flow of electricity in | ||||||
20 | both directions at the same rate. | ||||||
21 | (1) For eligible customers whose electric service has | ||||||
22 | not been declared competitive pursuant to Section 16-113 | ||||||
23 | of this Act as of July 1, 2011 and whose electric delivery | ||||||
24 | service is provided and measured on a kilowatt-hour basis | ||||||
25 | and electric supply service is not provided based on | ||||||
26 | hourly pricing, this shall typically be accomplished |
| |||||||
| |||||||
1 | through use of a single, bi-directional meter. If the | ||||||
2 | eligible customer's existing electric revenue meter does | ||||||
3 | not meet this requirement, the electricity provider shall | ||||||
4 | arrange for the local electric utility or a meter service | ||||||
5 | provider to install and maintain a new revenue meter at | ||||||
6 | the electricity provider's expense, which may be the smart | ||||||
7 | meter described by subsection (b) of Section 16-108.5 of | ||||||
8 | this Act. | ||||||
9 | (2) For eligible customers whose electric service has | ||||||
10 | not been declared competitive pursuant to Section 16-113 | ||||||
11 | of this Act as of July 1, 2011 and whose electric delivery | ||||||
12 | service is provided and measured on a kilowatt demand | ||||||
13 | basis and electric supply service is not provided based on | ||||||
14 | hourly pricing, this shall typically be accomplished | ||||||
15 | through use of a dual channel meter capable of measuring | ||||||
16 | the flow of electricity both into and out of the | ||||||
17 | customer's facility at the same rate and ratio. If such | ||||||
18 | customer's existing electric revenue meter does not meet | ||||||
19 | this requirement, then the electricity provider shall | ||||||
20 | arrange for the local electric utility or a meter service | ||||||
21 | provider to install and maintain a new revenue meter at | ||||||
22 | the electricity provider's expense, which may be the smart | ||||||
23 | meter described by subsection (b) of Section 16-108.5 of | ||||||
24 | this Act. | ||||||
25 | (3) For all other eligible customers, until such time | ||||||
26 | as the local electric utility installs a smart meter, as |
| |||||||
| |||||||
1 | described by subsection (b) of Section 16-108.5 of this | ||||||
2 | Act, the electricity provider may arrange for the local | ||||||
3 | electric utility or a meter service provider to install | ||||||
4 | and maintain metering equipment capable of measuring the | ||||||
5 | flow of electricity both into and out of the customer's | ||||||
6 | facility at the same rate and ratio, typically through the | ||||||
7 | use of a dual channel meter. If the eligible customer's | ||||||
8 | existing electric revenue meter does not meet this | ||||||
9 | requirement, then the costs of installing such equipment | ||||||
10 | shall be paid for by the customer.
| ||||||
11 | (d) An electricity provider shall
measure and charge or | ||||||
12 | credit for the net
electricity supplied to eligible customers | ||||||
13 | or provided by eligible customers whose electric service has | ||||||
14 | not been declared competitive pursuant to Section 16-113 of | ||||||
15 | this Act as of July 1, 2011 and whose electric delivery service | ||||||
16 | is provided and measured on a kilowatt-hour basis and electric | ||||||
17 | supply service is not provided based on hourly pricing in
the | ||||||
18 | following manner:
| ||||||
19 | (1) If the amount of electricity used by the customer | ||||||
20 | during the billing
period exceeds the
amount of | ||||||
21 | electricity produced by the customer, the electricity | ||||||
22 | provider shall charge the customer for the net electricity | ||||||
23 | supplied to and used
by the customer as provided in | ||||||
24 | subsection (e-5) of this Section.
| ||||||
25 | (2) If the amount of electricity produced by a | ||||||
26 | customer during the billing period exceeds the amount of |
| |||||||
| |||||||
1 | electricity used by the customer during that billing | ||||||
2 | period, the electricity provider supplying that customer | ||||||
3 | shall apply a 1:1 kilowatt-hour credit to a subsequent | ||||||
4 | bill for service to the customer for the net electricity | ||||||
5 | supplied to the electricity provider. The electricity | ||||||
6 | provider shall continue to carry over any excess | ||||||
7 | kilowatt-hour credits earned and apply those credits to | ||||||
8 | subsequent billing periods to offset any | ||||||
9 | customer-generator consumption in those billing periods | ||||||
10 | until all credits are used or until the end of the | ||||||
11 | annualized period.
| ||||||
12 | (3) At the end of the year or annualized over the | ||||||
13 | period that service is supplied by means of net metering, | ||||||
14 | or in the event that the retail customer terminates | ||||||
15 | service with the electricity provider prior to the end of | ||||||
16 | the year or the annualized period, any remaining credits | ||||||
17 | in the customer's account shall expire.
| ||||||
18 | (d-5) An electricity provider shall measure and charge or | ||||||
19 | credit for the net electricity
supplied to eligible customers | ||||||
20 | or provided by eligible customers whose electric service has | ||||||
21 | not
been declared competitive pursuant to Section 16-113 of | ||||||
22 | this Act as of July 1, 2011 and whose electric delivery
service | ||||||
23 | is provided and measured on a kilowatt-hour basis and electric | ||||||
24 | supply service is provided
based on hourly pricing or | ||||||
25 | time-of-use rates in the following manner: | ||||||
26 | (1) If the amount of electricity used by the customer |
| |||||||
| |||||||
1 | during any hourly or time-of-use period exceeds the amount | ||||||
2 | of electricity produced by the customer, the electricity | ||||||
3 | provider shall charge the customer for the net electricity | ||||||
4 | supplied to and used by the customer according to the | ||||||
5 | terms of the contract or tariff to which the same customer | ||||||
6 | would be assigned to or be eligible for if the customer was | ||||||
7 | not a net metering customer. | ||||||
8 | (2) If the amount of electricity produced by a | ||||||
9 | customer during any hourly period or time-of-use period | ||||||
10 | exceeds the amount of electricity used by the customer | ||||||
11 | during that hourly period or time-of-use period , the | ||||||
12 | energy provider shall apply a credit for the net | ||||||
13 | kilowatt-hours produced in such period. The credit shall | ||||||
14 | consist of an energy credit and a delivery service credit. | ||||||
15 | The energy
credit shall be valued at the same price per | ||||||
16 | kilowatt-hour as the electric service provider
would | ||||||
17 | charge for kilowatt-hour energy sales during that same | ||||||
18 | hourly or time-of-use period. The delivery credit shall be | ||||||
19 | equal to the net kilowatt-hours produced in such hourly or | ||||||
20 | time-of-use period times a credit that reflects all | ||||||
21 | kilowatt-hour based charges in the customer's electric | ||||||
22 | service rate, excluding energy charges. | ||||||
23 | (e) An electricity provider shall measure and charge or | ||||||
24 | credit for the net electricity supplied to eligible customers | ||||||
25 | whose electric service has not been declared competitive | ||||||
26 | pursuant to Section 16-113 of this Act as of July 1, 2011 and |
| |||||||
| |||||||
1 | whose electric delivery service is provided and measured on a | ||||||
2 | kilowatt demand basis and electric supply service is not | ||||||
3 | provided based on hourly pricing in the following manner: | ||||||
4 | (1) If the amount of electricity used by the customer | ||||||
5 | during the billing period exceeds the amount of | ||||||
6 | electricity produced by the customer, then the electricity | ||||||
7 | provider shall charge the customer for the net electricity | ||||||
8 | supplied to and used by the customer as provided in | ||||||
9 | subsection (e-5) of this Section. The customer shall | ||||||
10 | remain responsible for all taxes, fees, and utility | ||||||
11 | delivery charges that would otherwise be applicable to the | ||||||
12 | net amount of electricity used by the customer. | ||||||
13 | (2) If the amount of electricity produced by a | ||||||
14 | customer during the billing period exceeds the amount of | ||||||
15 | electricity used by the customer during that billing | ||||||
16 | period, then the electricity provider supplying that | ||||||
17 | customer shall apply a 1:1 kilowatt-hour credit that | ||||||
18 | reflects the kilowatt-hour based charges in the customer's | ||||||
19 | electric service rate to a subsequent bill for service to | ||||||
20 | the customer for the net electricity supplied to the | ||||||
21 | electricity provider. The electricity provider shall | ||||||
22 | continue to carry over any excess kilowatt-hour credits | ||||||
23 | earned and apply those credits to subsequent billing | ||||||
24 | periods to offset any customer-generator consumption in | ||||||
25 | those billing periods until all credits are used or until | ||||||
26 | the end of the annualized period. |
| |||||||
| |||||||
1 | (3) At the end of the year or annualized over the | ||||||
2 | period that service is supplied by means of net metering, | ||||||
3 | or in the event that the retail customer terminates | ||||||
4 | service with the electricity provider prior to the end of | ||||||
5 | the year or the annualized period, any remaining credits | ||||||
6 | in the customer's account shall expire. | ||||||
7 | (e-5) An electricity provider shall provide electric | ||||||
8 | service to eligible customers who utilize net metering at | ||||||
9 | non-discriminatory rates that are identical, with respect to | ||||||
10 | rate structure, retail rate components, and any monthly | ||||||
11 | charges, to the rates that the customer would be charged if not | ||||||
12 | a net metering customer. An electricity provider shall not | ||||||
13 | charge net metering customers any fee or charge or require | ||||||
14 | additional equipment, insurance, or any other requirements not | ||||||
15 | specifically authorized by interconnection standards | ||||||
16 | authorized by the Commission, unless the fee, charge, or other | ||||||
17 | requirement would apply to other similarly situated customers | ||||||
18 | who are not net metering customers. The customer will remain | ||||||
19 | responsible for all taxes, fees, and utility delivery charges | ||||||
20 | that would otherwise be applicable to the net amount of | ||||||
21 | electricity used by the customer. Subsections (c) through (e) | ||||||
22 | of this Section shall not be construed to prevent an | ||||||
23 | arms-length agreement between an electricity provider and an | ||||||
24 | eligible customer that sets forth different prices, terms, and | ||||||
25 | conditions for the provision of net metering service, | ||||||
26 | including, but not limited to, the provision of the |
| |||||||
| |||||||
1 | appropriate metering equipment for non-residential customers.
| ||||||
2 | (f) Notwithstanding the requirements of subsections (c) | ||||||
3 | through (e-5) of this Section, an electricity provider must | ||||||
4 | require dual-channel metering for customers operating eligible | ||||||
5 | renewable electrical generating facilities with a nameplate | ||||||
6 | rating up to 2,000 kilowatts and to whom the provisions of | ||||||
7 | neither subsection (d), (d-5), nor (e) of this Section apply. | ||||||
8 | In such cases, electricity charges and credits shall be | ||||||
9 | determined as follows:
| ||||||
10 | (1) The electricity provider shall assess and the | ||||||
11 | customer remains responsible for all taxes, fees, and | ||||||
12 | utility delivery charges that would otherwise be | ||||||
13 | applicable to the gross amount of kilowatt-hours supplied | ||||||
14 | to the eligible customer by the electricity provider. | ||||||
15 | (2) Each month that service is supplied by means of | ||||||
16 | dual-channel metering, the electricity provider shall | ||||||
17 | compensate the eligible customer for any excess | ||||||
18 | kilowatt-hour credits at the electricity provider's | ||||||
19 | avoided cost of electricity supply over the monthly period | ||||||
20 | or as otherwise specified by the terms of a power-purchase | ||||||
21 | agreement negotiated between the customer and electricity | ||||||
22 | provider. | ||||||
23 | (3) For all eligible net metering customers taking | ||||||
24 | service from an electricity provider under contracts or | ||||||
25 | tariffs employing hourly or time of use rates, any monthly | ||||||
26 | consumption of electricity shall be calculated according |
| |||||||
| |||||||
1 | to the terms of the contract or tariff to which the same | ||||||
2 | customer would be assigned to or be eligible for if the | ||||||
3 | customer was not a net metering customer. When those same | ||||||
4 | customer-generators are net generators during any discrete | ||||||
5 | hourly or time of use period, the net kilowatt-hours | ||||||
6 | produced shall be valued at the same price per | ||||||
7 | kilowatt-hour as the electric service provider would | ||||||
8 | charge for retail kilowatt-hour sales during that same | ||||||
9 | time of use period.
| ||||||
10 | (g) For purposes of federal and State laws providing | ||||||
11 | renewable energy credits or greenhouse gas credits, the | ||||||
12 | eligible customer shall be treated as owning and having title | ||||||
13 | to the renewable energy attributes, renewable energy credits, | ||||||
14 | and greenhouse gas emission credits related to any electricity | ||||||
15 | produced by the qualified generating unit. The electricity | ||||||
16 | provider may not condition participation in a net metering | ||||||
17 | program on the signing over of a customer's renewable energy | ||||||
18 | credits; provided, however, this subsection (g) shall not be | ||||||
19 | construed to prevent an arms-length agreement between an | ||||||
20 | electricity provider and an eligible customer that sets forth | ||||||
21 | the ownership or title of the credits.
| ||||||
22 | (h) Within 120 days after the effective date of this
| ||||||
23 | amendatory Act of the 95th General Assembly, the Commission | ||||||
24 | shall establish standards for net metering and, if the | ||||||
25 | Commission has not already acted on its own initiative, | ||||||
26 | standards for the interconnection of eligible renewable |
| |||||||
| |||||||
1 | generating equipment to the utility system. The | ||||||
2 | interconnection standards shall address any procedural | ||||||
3 | barriers, delays, and administrative costs associated with the | ||||||
4 | interconnection of customer-generation while ensuring the | ||||||
5 | safety and reliability of the units and the electric utility | ||||||
6 | system. The Commission shall consider the Institute of | ||||||
7 | Electrical and Electronics Engineers (IEEE) Standard 1547 and | ||||||
8 | the issues of (i) reasonable and fair fees and costs, (ii) | ||||||
9 | clear timelines for major milestones in the interconnection | ||||||
10 | process, (iii) nondiscriminatory terms of agreement, and (iv) | ||||||
11 | any best practices for interconnection of distributed | ||||||
12 | generation.
| ||||||
13 | (h-3) On and after the effective date of this amendatory | ||||||
14 | Act of the 102nd General Assembly, it is the policy of the | ||||||
15 | State that: | ||||||
16 | (1) Electric utilities must provide interconnection | ||||||
17 | customers with a detailed accounting of the components of | ||||||
18 | the utility's cost to study and perform system upgrades, | ||||||
19 | with itemized lists of equipment costs, labor costs, | ||||||
20 | engineering costs, and administrative costs associated | ||||||
21 | with the study or system upgrade. | ||||||
22 | (2) An electric utility that has failed to meet an | ||||||
23 | interconnection timeline by more than 20 days is subject | ||||||
24 | to a penalty of $1,000 for each day over 20 days past the | ||||||
25 | applicable date upon which the utility action was due. | ||||||
26 | (3) The Illinois Commerce Commission shall, within 60 |
| |||||||
| |||||||
1 | days after the effective date of this amendatory Act of | ||||||
2 | the 102nd General Assembly, hire or contract with an | ||||||
3 | independent grid engineer to address delays and disputes | ||||||
4 | between the utility and the interconnection customer. | ||||||
5 | Specifically, this independent engineer shall: | ||||||
6 | (A) review utility cost estimates at the request | ||||||
7 | of interconnection customers; | ||||||
8 | (B) resolve technical disputes between utilities | ||||||
9 | and interconnection customers regarding necessary | ||||||
10 | upgrades and costs thereof; | ||||||
11 | (C) authorize customers to self-supply | ||||||
12 | interconnection studies when the electric utility is | ||||||
13 | unable to provide such studies at a reasonable cost | ||||||
14 | and schedule; and | ||||||
15 | (D) authorize customers to self-build system | ||||||
16 | upgrades consistent with electric utility standards | ||||||
17 | when the electric utility cannot provide such upgrades | ||||||
18 | and interconnection facilities at a reasonable cost | ||||||
19 | and schedule. | ||||||
20 | The process to hire or contract with an independent | ||||||
21 | grid engineer described in this paragraph (3) is exempt | ||||||
22 | from the requirements of the Illinois Procurement Code, | ||||||
23 | pursuant to Section 20-10 of that Code. | ||||||
24 | (h-5) Within 90 days after the effective date of this | ||||||
25 | amendatory Act of the 102nd General Assembly, the Commission | ||||||
26 | shall open a proceeding to update the interconnection |
| |||||||
| |||||||
1 | standards and applicable utility tariffs. For the public | ||||||
2 | interest, safety, and welfare of Illinois residents, the | ||||||
3 | Commission may adopt emergency rules under Section 5-45 of the | ||||||
4 | Illinois Administrative Procedure Act to implement the | ||||||
5 | requirements of subsection (h-3) and this subsection (h-5). In | ||||||
6 | addition to the requirements of subsection (h-3), the | ||||||
7 | Commission shall also revise the standards to address critical | ||||||
8 | standards for interconnection and the following issues: | ||||||
9 | (1) transparency and accuracy of costs, both direct | ||||||
10 | and indirect, while maintaining system security through | ||||||
11 | the effective management of confidentiality agreements; | ||||||
12 | (2) standardization of typical costs associated with | ||||||
13 | interconnection; | ||||||
14 | (3) transparency of the interconnection queue or | ||||||
15 | queues and hosting capacity; | ||||||
16 | (4) development of hosting capacity maps that enable | ||||||
17 | greater visibility to customers about the locations with | ||||||
18 | the greatest need or availability for distributed | ||||||
19 | generation; | ||||||
20 | (5) predictability of the queue management process and | ||||||
21 | enforcement of timelines; | ||||||
22 | (6) ability to undertake group interconnection studies | ||||||
23 | and share interconnection costs among multiple applicants; | ||||||
24 | (7) minimum requirements for application to the | ||||||
25 | interconnection process and throughout the interconnection | ||||||
26 | process to avoid queue clogging behavior; |
| |||||||
| |||||||
1 | (8) requirements that the electric utility performing | ||||||
2 | the interconnection study justify its interconnection | ||||||
3 | study cost and the estimates of costs for identified | ||||||
4 | upgrades, and to cap payments required by the | ||||||
5 | interconnection customer for the electric utility | ||||||
6 | installed facilities to the lesser of +50% of the | ||||||
7 | Feasibility Study estimate, +25% of the System Impact | ||||||
8 | Study estimate, or +10% of the Facilities Study estimate; | ||||||
9 | (9) facilitation of the deployment of energy storage | ||||||
10 | systems while ensuring the continued grid safety and | ||||||
11 | reliability of the system, including addressing the | ||||||
12 | following: | ||||||
13 | (A) treatment of energy storage systems as | ||||||
14 | generation for purposes of the interconnection, | ||||||
15 | ownership, and operation; | ||||||
16 | (B) fair study assumptions that reflect the | ||||||
17 | operational profile of the energy storage device; | ||||||
18 | (C) streamlined notification-only interconnection | ||||||
19 | requirements for nonexporting systems that meet | ||||||
20 | utility criteria for safety and reliability, as is | ||||||
21 | determined through a robust stakeholder process; and | ||||||
22 | (D) enabling exports from customer-sited energy | ||||||
23 | storage systems for participation either in utility | ||||||
24 | programs or wholesale markets; | ||||||
25 | (10) establishment of a dispute resolution process | ||||||
26 | designed to address instances of unreasonable impediments |
| |||||||
| |||||||
1 | by the electric utility to the critical standards for | ||||||
2 | interconnection enumerated in paragraphs (1) through (9) | ||||||
3 | of this subsection (h-5). The Commission shall make | ||||||
4 | available adequate Commission staff for this dispute | ||||||
5 | resolution process to ensure that matters are decided on | ||||||
6 | an expedited basis; and | ||||||
7 | (11) other policies, processes, tariffs, and standards | ||||||
8 | associated with interconnection, including the creation of | ||||||
9 | standards and processes that support the achievement of | ||||||
10 | the objectives in subparagraph (K) of paragraph (1) of | ||||||
11 | subsection (c) of Section 1-75 of the Illinois Power | ||||||
12 | Agency Act | ||||||
13 | As part of this proceeding initiated under this subsection | ||||||
14 | (h-5), the Commission shall establish an interconnection | ||||||
15 | working group. The working group shall include representatives | ||||||
16 | from electric utilities, developers of renewable electric | ||||||
17 | generating facilities, representatives of interconnection | ||||||
18 | customers, Commission staff, and other stakeholders. The | ||||||
19 | working group shall be facilitated by Commission staff. The | ||||||
20 | working group shall examine and make recommendations regarding | ||||||
21 | best practices for interconnection process and customer | ||||||
22 | service for interconnecting customer adopting distributed | ||||||
23 | energy resources, including energy storage, interconnection of | ||||||
24 | new technologies, including smart inverters and energy | ||||||
25 | storage, and, without limitation, other technical, policy, and | ||||||
26 | tariff issues related to and affecting interconnection |
| |||||||
| |||||||
1 | performance and customer service. | ||||||
2 | The working group shall report to the Commission on | ||||||
3 | changes to interconnection rules and tariffs and any other | ||||||
4 | recommendations as determined by the working group within 6 | ||||||
5 | months after its first meeting. The report shall include | ||||||
6 | positions and recommendations of the working group and | ||||||
7 | individual working group members. The report of the working | ||||||
8 | group shall be entered into evidence in the rulemaking process | ||||||
9 | mandated by this subsection (h-5). The working group shall be | ||||||
10 | reconvened one year following the enactment of the rules | ||||||
11 | adopted pursuant to this subsection (h-5) to recommend any | ||||||
12 | additional changes and assess the performance of the rules in | ||||||
13 | meeting the goals as described above. | ||||||
14 | (i) All electricity providers shall begin to offer net | ||||||
15 | metering
no later than April 1,
2008.
| ||||||
16 | (j) An electricity provider shall provide net metering to | ||||||
17 | eligible
customers until both of the following occur: (i) the | ||||||
18 | statewide net metering penetration equals 5% and (ii) the | ||||||
19 | Commission approves the utility tariffs prescribed by | ||||||
20 | subsection (e) of Section 16-107.6 of this Act that make | ||||||
21 | distributed generation rebates available to all eligible | ||||||
22 | customers, including residential customers, and those tariffs | ||||||
23 | go into effect. After that time the load of its net metering | ||||||
24 | customers equals 5% of
the total peak demand supplied by
that | ||||||
25 | electricity provider during the
previous year. After such time | ||||||
26 | as the load of the electricity provider's net metering |
| |||||||
| |||||||
1 | customers equals 5% of the total peak demand supplied by that | ||||||
2 | electricity provider during the previous year , eligible | ||||||
3 | customers that begin taking net metering shall no longer be | ||||||
4 | eligible for netting of delivery service credits as described | ||||||
5 | in subsection (n) of this Section only be eligible for netting | ||||||
6 | of energy .
| ||||||
7 | (k) Each electricity provider shall maintain records and | ||||||
8 | report annually to the Commission the total number of net | ||||||
9 | metering customers served by the provider, as well as the | ||||||
10 | type, capacity, and energy sources of the generating systems | ||||||
11 | used by the net metering customers. Nothing in this Section | ||||||
12 | shall limit the ability of an electricity provider to request | ||||||
13 | the redaction of information deemed by the Commission to be | ||||||
14 | confidential business information. | ||||||
15 | (l)(1) Notwithstanding the definition of "eligible | ||||||
16 | customer" in item (ii) of subsection (b) of this Section, each | ||||||
17 | electricity provider shall allow net metering as set forth in | ||||||
18 | this subsection (l) and for the following projects:
| ||||||
19 | (A) properties owned or leased by multiple customers | ||||||
20 | that contribute to the operation of an eligible renewable | ||||||
21 | electrical generating facility through an ownership or | ||||||
22 | leasehold interest of at least 200 watts in such facility, | ||||||
23 | such as a community-owned wind project, a community-owned | ||||||
24 | biomass project, a community-owned solar project, or a | ||||||
25 | community methane digester processing livestock waste from | ||||||
26 | multiple sources, provided that the facility is also |
| |||||||
| |||||||
1 | located within the utility's service territory;
| ||||||
2 | (B) individual units, apartments, or properties | ||||||
3 | located in a single building that are owned or leased by | ||||||
4 | multiple customers and collectively served by a common | ||||||
5 | eligible renewable electrical generating facility, such as | ||||||
6 | an office or apartment building, a shopping center or | ||||||
7 | strip mall served by photovoltaic panels on the roof; and
| ||||||
8 | (C) subscriptions to community renewable generation | ||||||
9 | projects , including community renewable generation | ||||||
10 | projects on the customer's side of the billing meter of a | ||||||
11 | host facility and partially used for the customer's own | ||||||
12 | load . | ||||||
13 | In addition, the nameplate capacity of the eligible | ||||||
14 | renewable electric generating facility that serves the demand | ||||||
15 | of the properties, units, or apartments identified in | ||||||
16 | paragraphs (1) and (2) of this subsection (l) shall not exceed | ||||||
17 | 2,000 kilowatts in nameplate capacity in total.
Any eligible | ||||||
18 | renewable electrical generating facility or community | ||||||
19 | renewable generation project that is powered by photovoltaic | ||||||
20 | electric energy and installed after the effective date of this | ||||||
21 | amendatory Act of the 99th General Assembly must be installed | ||||||
22 | by a qualified person in compliance with the requirements of | ||||||
23 | Section 16-128A of the Public Utilities Act and any rules or | ||||||
24 | regulations adopted thereunder. | ||||||
25 | (2) Notwithstanding anything to the contrary, an | ||||||
26 | electricity provider shall provide credits for the electricity |
| |||||||
| |||||||
1 | produced by the projects described in paragraph (1) of this | ||||||
2 | subsection (l). The electricity provider shall provide credits | ||||||
3 | that include at least energy supply, capacity, transmission, | ||||||
4 | and the purchased electricity adjustment, as applicable, at | ||||||
5 | the subscriber's energy supply rate on the subscriber's | ||||||
6 | monthly bill equal to the subscriber's share of the production | ||||||
7 | of electricity from the project, as determined by paragraph | ||||||
8 | (3) of this subsection (l). | ||||||
9 | (3) For the purposes of facilitating net metering, the | ||||||
10 | owner or operator of the eligible renewable electrical | ||||||
11 | generating facility or community renewable generation project | ||||||
12 | shall be responsible for determining the amount of the credit | ||||||
13 | that each customer or subscriber participating in a project | ||||||
14 | under this subsection (l) is to receive in the following | ||||||
15 | manner:
| ||||||
16 | (A) The owner or operator shall, on a monthly basis, | ||||||
17 | provide to the electric utility the kilowatthours of | ||||||
18 | generation attributable to each of the utility's retail | ||||||
19 | customers and subscribers participating in projects under | ||||||
20 | this subsection (l) in accordance with the customer's or | ||||||
21 | subscriber's share of the eligible renewable electric | ||||||
22 | generating facility's or community renewable generation | ||||||
23 | project's output of power and energy for such month. The | ||||||
24 | owner or operator shall electronically transmit such | ||||||
25 | calculations and associated documentation to the electric | ||||||
26 | utility, in a format or method set forth in the applicable |
| |||||||
| |||||||
1 | tariff, on a monthly basis so that the electric utility | ||||||
2 | can reflect the monetary credits on customers' and | ||||||
3 | subscribers' electric utility bills. The electric utility | ||||||
4 | shall be permitted to revise its tariffs to implement the | ||||||
5 | provisions of this amendatory Act of the 102nd General | ||||||
6 | Assembly this amendatory Act of the 99th General Assembly . | ||||||
7 | The owner or operator shall separately provide the | ||||||
8 | electric utility with the documentation detailing the | ||||||
9 | calculations supporting the credit in the manner set forth | ||||||
10 | in the applicable tariff. | ||||||
11 | (B) For those participating customers and subscribers | ||||||
12 | who receive their energy supply from an alternative retail | ||||||
13 | electric supplier, the electric utility shall remit to the | ||||||
14 | applicable alternative retail electric supplier the | ||||||
15 | information provided under subparagraph (A) of this | ||||||
16 | paragraph (3) for such customers and subscribers in a | ||||||
17 | manner set forth in such alternative retail electric | ||||||
18 | supplier's net metering program, or as otherwise agreed | ||||||
19 | between the utility and the alternative retail electric | ||||||
20 | supplier. The alternative retail electric supplier shall | ||||||
21 | then submit to the utility the amount of the charges for | ||||||
22 | power and energy to be applied to such customers and | ||||||
23 | subscribers, including the amount of the credit associated | ||||||
24 | with net metering. | ||||||
25 | (C) A participating customer or subscriber may provide | ||||||
26 | authorization as required by applicable law that directs |
| |||||||
| |||||||
1 | the electric utility to submit information to the owner or | ||||||
2 | operator of the eligible renewable electrical generating | ||||||
3 | facility or community renewable generation project to | ||||||
4 | which the customer or subscriber has an ownership or | ||||||
5 | leasehold interest or a subscription. Such information | ||||||
6 | shall be limited to the components of the net metering | ||||||
7 | credit calculated under this subsection (l), including the | ||||||
8 | bill credit rate, total kilowatthours, and total monetary | ||||||
9 | credit value applied to the customer's or subscriber's | ||||||
10 | bill for the monthly billing period. | ||||||
11 | For community renewable generation projects located behind | ||||||
12 | the meter of a host facility, the determination of the | ||||||
13 | quantity of energy eligible for crediting to participating | ||||||
14 | customers or subscribers of the community renewable generation | ||||||
15 | project shall be based on any energy production of the project | ||||||
16 | that exceeds the host's instantaneous on-site consumption | ||||||
17 | during the applicable billing period. | ||||||
18 | (l-5) Within 90 days after the effective date of this | ||||||
19 | amendatory Act of the 102nd General Assembly this amendatory | ||||||
20 | Act of the 99th General Assembly , each electric utility | ||||||
21 | subject to this Section shall file a tariff to implement the | ||||||
22 | provisions of subsection (l) of this Section, which shall, | ||||||
23 | consistent with the provisions of subsection (l), describe the | ||||||
24 | terms and conditions under which owners or operators of | ||||||
25 | qualifying properties, units, or apartments may participate in | ||||||
26 | net metering. The Commission shall approve, or approve with |
| |||||||
| |||||||
1 | modification, the tariff within 120 days after the effective | ||||||
2 | date of this amendatory Act of the 102nd General Assembly this | ||||||
3 | amendatory Act of the 99th General Assembly . | ||||||
4 | (m) Nothing in this Section shall affect the right of an | ||||||
5 | electricity provider to continue to provide, or the right of a | ||||||
6 | retail customer to continue to receive service pursuant to a | ||||||
7 | contract for electric service between the electricity provider | ||||||
8 | and the retail customer in accordance with the prices, terms, | ||||||
9 | and conditions provided for in that contract. Either the | ||||||
10 | electricity provider or the customer may require compliance | ||||||
11 | with the prices, terms, and conditions of the contract.
| ||||||
12 | (n) At such time, if any, that statewide net metering | ||||||
13 | penetration equals 5% the load of the electricity provider's | ||||||
14 | net metering customers equals 5% of the total peak demand | ||||||
15 | supplied by that electricity provider during the previous | ||||||
16 | year , as specified in subsection (j) of this Section, and the | ||||||
17 | distributed generation rebate tariff for the electricity | ||||||
18 | utility prescribed by subsection (e) of Section 16-107.6 of | ||||||
19 | this Act has gone into effect and the rebate is approved and | ||||||
20 | available to eligible customers, the net metering services | ||||||
21 | described in subsections (d), (d-5), (e), (e-5), and (f) of | ||||||
22 | this Section shall no longer be offered, except as to those | ||||||
23 | eligible renewable generating facilities for which retail | ||||||
24 | customers that are receiving net metering service under these | ||||||
25 | subsections at the time the net metering services under those | ||||||
26 | subsections are no longer offered ; those systems shall |
| |||||||
| |||||||
1 | continue to receive net metering services described in | ||||||
2 | subsections (d), (d-5), (e), (e-5), and (f) of this Section | ||||||
3 | for the lifetime of the system, regardless of whether those | ||||||
4 | retail customers change electricity providers or whether the | ||||||
5 | retail customer benefiting from the system changes . Those | ||||||
6 | retail customers that begin taking net metering service after | ||||||
7 | the date that net metering services are no longer offered | ||||||
8 | under such subsections shall be subject to the provisions set | ||||||
9 | forth in the following paragraphs (1) through (3) of this | ||||||
10 | subsection (n): | ||||||
11 | (1) An electricity provider shall charge or credit for | ||||||
12 | the net electricity supplied to eligible customers or | ||||||
13 | provided by eligible customers whose electric supply | ||||||
14 | service is not provided based on hourly pricing in the | ||||||
15 | following manner: | ||||||
16 | (A) If the amount of electricity used by the | ||||||
17 | customer during the billing period exceeds the amount | ||||||
18 | of electricity produced by the customer, then the | ||||||
19 | electricity provider shall charge the customer for the | ||||||
20 | net kilowatt-hour based electricity charges reflected | ||||||
21 | in the customer's electric service rate supplied to | ||||||
22 | and used by the customer as provided in paragraph (3) | ||||||
23 | of this subsection (n). | ||||||
24 | (B) If the amount of electricity produced by a | ||||||
25 | customer during the billing period exceeds the amount | ||||||
26 | of electricity used by the customer during that |
| |||||||
| |||||||
1 | billing period, then the electricity provider | ||||||
2 | supplying that customer shall apply a 1:1 | ||||||
3 | kilowatt-hour energy credit that reflects the | ||||||
4 | kilowatt-hour based energy charges in the customer's | ||||||
5 | electric service rate to a subsequent bill for service | ||||||
6 | to the customer for the net electricity supplied to | ||||||
7 | the electricity provider. The electricity provider | ||||||
8 | shall continue to carry over any excess kilowatt-hour | ||||||
9 | energy credits earned and apply those credits to | ||||||
10 | subsequent billing periods to offset any | ||||||
11 | customer-generator consumption in those billing | ||||||
12 | periods until all credits are used or until the end of | ||||||
13 | the annualized period. | ||||||
14 | (C) At the end of the year or annualized over the | ||||||
15 | period that service is supplied by means of net | ||||||
16 | metering, or in the event that the retail customer | ||||||
17 | terminates service with the electricity provider prior | ||||||
18 | to the end of the year or the annualized period, any | ||||||
19 | remaining credits in the customer's account shall | ||||||
20 | expire. | ||||||
21 | (2) An electricity provider shall charge or credit for | ||||||
22 | the net electricity supplied to eligible customers or | ||||||
23 | provided by eligible customers whose electric supply | ||||||
24 | service is provided based on hourly pricing in the | ||||||
25 | following manner: | ||||||
26 | (A) If the amount of electricity used by the |
| |||||||
| |||||||
1 | customer during any hourly period exceeds the amount | ||||||
2 | of electricity produced by the customer, then the | ||||||
3 | electricity provider shall charge the customer for the | ||||||
4 | net electricity supplied to and used by the customer | ||||||
5 | as provided in paragraph (3) of this subsection (n). | ||||||
6 | (B) If the amount of electricity produced by a | ||||||
7 | customer during any hourly period exceeds the amount | ||||||
8 | of electricity used by the customer during that hourly | ||||||
9 | period, the energy provider shall calculate an energy | ||||||
10 | credit for the net kilowatt-hours produced in such | ||||||
11 | period. The value of the energy credit shall be | ||||||
12 | calculated using the same price per kilowatt-hour as | ||||||
13 | the electric service provider would charge for | ||||||
14 | kilowatt-hour energy sales during that same hourly | ||||||
15 | period. | ||||||
16 | (3) An electricity provider shall provide electric | ||||||
17 | service to eligible customers who utilize net metering at | ||||||
18 | non-discriminatory rates that are identical, with respect | ||||||
19 | to rate structure, retail rate components, and any monthly | ||||||
20 | charges, to the rates that the customer would be charged | ||||||
21 | if not a net metering customer. An electricity provider | ||||||
22 | shall charge the customer for the net electricity supplied | ||||||
23 | to and used by the customer according to the terms of the | ||||||
24 | contract or tariff to which the same customer would be | ||||||
25 | assigned or be eligible for if the customer was not a net | ||||||
26 | metering customer. An electricity provider shall not |
| |||||||
| |||||||
1 | charge net metering customers any fee or charge or require | ||||||
2 | additional equipment, insurance, or any other requirements | ||||||
3 | not specifically authorized by interconnection standards | ||||||
4 | authorized by the Commission, unless the fee, charge, or | ||||||
5 | other requirement would apply to other similarly situated | ||||||
6 | customers who are not net metering customers. The charge | ||||||
7 | or credit that the customer receives for net electricity | ||||||
8 | shall be at a rate equal to the customer's energy supply | ||||||
9 | rate. The customer remains responsible for the gross | ||||||
10 | amount of delivery services charges, supply-related | ||||||
11 | charges that are kilowatt based, and all taxes and fees | ||||||
12 | related to such charges. The customer also remains | ||||||
13 | responsible for all taxes and fees that would otherwise be | ||||||
14 | applicable to the net amount of electricity used by the | ||||||
15 | customer. Paragraphs (1) and (2) of this subsection (n) | ||||||
16 | shall not be construed to prevent an arms-length agreement | ||||||
17 | between an electricity provider and an eligible customer | ||||||
18 | that sets forth different prices, terms, and conditions | ||||||
19 | for the provision of net metering service, including, but | ||||||
20 | not limited to, the provision of the appropriate metering | ||||||
21 | equipment for non-residential customers. Nothing in this | ||||||
22 | paragraph (3) shall be interpreted to mandate that a | ||||||
23 | utility that is only required to provide delivery services | ||||||
24 | to a given customer must also sell electricity to such | ||||||
25 | customer.
| ||||||
26 | (o) Within 90 days after the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 102nd General Assembly, each electric | ||||||
2 | utility subject to this Section shall file a tariff that | ||||||
3 | shall, consistent with the provisions of this Section, propose | ||||||
4 | the terms and conditions under which an eligible customer may | ||||||
5 | participate in net metering. The Commission shall approve, or | ||||||
6 | approve with modification based on a stakeholder process, the | ||||||
7 | tariff within 120 days after the effective date of this | ||||||
8 | amendatory Act of the 102nd General Assembly. Each electric | ||||||
9 | utility shall file any changes to terms as a subsequent tariff | ||||||
10 | for approval or approval with modifications from the | ||||||
11 | Commission. | ||||||
12 | (Source: P.A. 99-906, eff. 6-1-17 .) | ||||||
13 | (220 ILCS 5/16-107.6) | ||||||
14 | Sec. 16-107.6. Distributed generation rebate. | ||||||
15 | (a) In this Section: | ||||||
16 | "Distributed energy resource" means a wide range of | ||||||
17 | technologies that are located on the customer side of the | ||||||
18 | customer's electric meter and can provide value to the | ||||||
19 | distribution system, including, but not limited to, | ||||||
20 | distributed generation, energy storage, electric vehicles, and | ||||||
21 | demand response technologies. | ||||||
22 | "Smart inverter" means a device that converts direct | ||||||
23 | current
into alternating current and meets the IEEE 1547-2018 | ||||||
24 | equipment standards. Until devices that meet the IEEE | ||||||
25 | 1547-2018 standard are available, devices that meet the UL |
| |||||||
| |||||||
1 | 1741 SA standard are acceptable can autonomously contribute to | ||||||
2 | grid support during excursions from normal operating voltage | ||||||
3 | and frequency conditions by providing each of the following: | ||||||
4 | dynamic reactive and real power support, voltage and frequency | ||||||
5 | ride-through, ramp rate controls, communication systems with | ||||||
6 | ability to accept external commands, and other functions from | ||||||
7 | the electric utility . | ||||||
8 | "Subscriber" has the meaning set forth in Section 1-10 of | ||||||
9 | the Illinois Power Agency Act. | ||||||
10 | "Subscription" has the meaning set forth in Section 1-10 | ||||||
11 | of the Illinois Power Agency Act. | ||||||
12 | "Threshold date" means the date on which statewide net | ||||||
13 | metering penetration equals 5% the load of an electricity | ||||||
14 | provider's net metering customers equals 5% of the total peak | ||||||
15 | demand supplied by that electricity provider during the | ||||||
16 | previous year , as specified under subsection (j) of Section | ||||||
17 | 16-107.5 of this Act. | ||||||
18 | (b) An electric utility that serves more than 200,000 | ||||||
19 | customers in the State shall file a petition with the | ||||||
20 | Commission requesting approval of the utility's tariff to | ||||||
21 | provide a rebate to a retail customer who owns or operates | ||||||
22 | distributed generation that meets the following criteria: | ||||||
23 | (1) has a nameplate generating capacity no greater | ||||||
24 | than 2,000 kilowatts and is primarily used to offset that | ||||||
25 | customer's electricity load; | ||||||
26 | (2) is located on the customer's side of the billing |
| |||||||
| |||||||
1 | meter premises , for the customer's own use, and not for | ||||||
2 | commercial use or sales, including, but not limited to, | ||||||
3 | wholesale sales of electric power and energy; | ||||||
4 | (3) is located in the electric utility's service | ||||||
5 | territory; and | ||||||
6 | (4) is interconnected under rules adopted by the | ||||||
7 | Commission by means of the inverter or smart inverter | ||||||
8 | required by this Section, as applicable. | ||||||
9 | For purposes of this Section, "distributed generation" | ||||||
10 | shall satisfy the definition of distributed renewable energy | ||||||
11 | generation device set forth in Section 1-10 of the Illinois | ||||||
12 | Power Agency Act to the extent such definition is consistent | ||||||
13 | with the requirements of this Section. | ||||||
14 | In addition, any new photovoltaic distributed generation | ||||||
15 | that is installed after the effective date of this amendatory | ||||||
16 | Act of the 99th General Assembly must be installed by a | ||||||
17 | qualified person, as defined by subsection (i) of Section 1-56 | ||||||
18 | of the Illinois Power Agency Act. | ||||||
19 | The tariff shall provide that the smart inverter | ||||||
20 | associated with the distributed generation shall provide | ||||||
21 | autonomous responses to grid conditions through its default | ||||||
22 | settings as approved by the Commission utility shall be | ||||||
23 | permitted to operate and control the smart inverter associated | ||||||
24 | with the distributed generation that is the subject of the | ||||||
25 | rebate for the purpose of preserving reliability during | ||||||
26 | distribution system reliability events and shall address the |
| |||||||
| |||||||
1 | terms and conditions of the operation and the compensation | ||||||
2 | associated with the operation . Nothing in this Section shall | ||||||
3 | negate or supersede Institute of Electrical and Electronics | ||||||
4 | Engineers equipment interconnection requirements or standards | ||||||
5 | or other similar standards or requirements. The tariff shall | ||||||
6 | not limit the ability of the smart inverter or other | ||||||
7 | distributed energy resource to provide wholesale market | ||||||
8 | products such as regulation, demand response, or other | ||||||
9 | services, or limit the ability of the owner of the smart | ||||||
10 | inverter or the other distributed energy resource to receive | ||||||
11 | compensation for providing those wholesale market products or | ||||||
12 | services. The tariff shall also provide for additional uses of | ||||||
13 | the smart inverter that shall be separately compensated and | ||||||
14 | which may include, but are not limited to, voltage and VAR | ||||||
15 | support, regulation, and other grid services. As part of the | ||||||
16 | proceeding described in subsection (e) of this Section, the | ||||||
17 | Commission shall review and determine whether smart inverters | ||||||
18 | can provide any additional uses or services. If the Commission | ||||||
19 | determines that an additional use or service would be | ||||||
20 | beneficial, the Commission shall determine the terms and | ||||||
21 | conditions of the operation and how the use or service should | ||||||
22 | be separately compensated. | ||||||
23 | (c) The proposed tariff authorized by subsection (b) of | ||||||
24 | this Section shall include the following participation terms | ||||||
25 | and formulae to calculate the value of the rebates to be | ||||||
26 | applied under this Section for distributed generation that |
| |||||||
| |||||||
1 | satisfies the criteria set forth in subsection (b) of this | ||||||
2 | Section: | ||||||
3 | (1) Until the utility's tariff or tariffs setting the | ||||||
4 | new compensation values established under subsection (e) | ||||||
5 | take effect utility files its tariff or tariffs to place | ||||||
6 | into effect the rebate values established by the | ||||||
7 | Commission under subsection (e) of this Section , | ||||||
8 | non-residential customers that are taking service under a | ||||||
9 | net metering program offered by an electricity provider | ||||||
10 | under the terms of Section 16-107.5 of this Act may apply | ||||||
11 | for a rebate as provided for in this Section. The value of | ||||||
12 | the rebate shall be $250 per kilowatt of nameplate | ||||||
13 | generating capacity, measured as nominal DC power output, | ||||||
14 | of a non-residential customer's distributed generation. | ||||||
15 | (2) After the utility's tariff or tariffs setting the | ||||||
16 | new rebate values established under subsection (e) (d) of | ||||||
17 | this Section take effect, retail customers may, as | ||||||
18 | applicable, make the following elections: | ||||||
19 | (A) Residential customers that are taking service | ||||||
20 | under a net metering program offered by an electricity | ||||||
21 | provider under the terms of Section 16-107.5 of this | ||||||
22 | Act on the threshold date may elect to either continue | ||||||
23 | to take such service under the terms of such program as | ||||||
24 | in effect on such threshold date for the useful life of | ||||||
25 | the customer's eligible renewable electric generating | ||||||
26 | facility as defined in such Section, or file an |
| |||||||
| |||||||
1 | application to receive a rebate under the terms of | ||||||
2 | this Section, provided that such application must be | ||||||
3 | submitted within 6 months after the effective date of | ||||||
4 | the tariff approved under subsection (d) of this | ||||||
5 | Section. The value of the rebate shall be the amount | ||||||
6 | established by the Commission and reflected in the | ||||||
7 | utility's tariff approved pursuant to subsection (e) | ||||||
8 | of this Section. | ||||||
9 | (B) Non-residential customers that are taking | ||||||
10 | service under a net metering program offered by an | ||||||
11 | electricity provider under the terms of Section | ||||||
12 | 16-107.5 of this Act on the threshold date may apply | ||||||
13 | for a rebate as provided for in this Section. The value | ||||||
14 | of the rebate shall be the amount established by the | ||||||
15 | Commission and reflected in the utility's tariff | ||||||
16 | pursuant to subsection (e) of this Section. | ||||||
17 | (3) Upon approval of a rebate application submitted | ||||||
18 | under this subsection (c), the retail customer shall no | ||||||
19 | longer be entitled to receive any delivery service credits | ||||||
20 | for the excess electricity generated by its facility and | ||||||
21 | shall be subject to the provisions of subsection (n) of | ||||||
22 | Section 16-107.5 of this Act. | ||||||
23 | (4) To be eligible for a rebate described in this | ||||||
24 | subsection (c), customers who begin taking service after | ||||||
25 | the effective date of this amendatory Act of the 99th | ||||||
26 | General Assembly under a net metering program offered by |
| |||||||
| |||||||
1 | an electricity provider under the terms of Section | ||||||
2 | 16-107.5 of this Act must have a smart inverter associated | ||||||
3 | with the customer's distributed generation. | ||||||
4 | (d) The Commission shall review the proposed tariff | ||||||
5 | submitted under subsections (b) and (c) of this Section and | ||||||
6 | may make changes to the tariff that are consistent with this | ||||||
7 | Section and with the Commission's authority under Article IX | ||||||
8 | of this Act, subject to notice and hearing. Following notice | ||||||
9 | and hearing, the Commission shall issue an order approving, or | ||||||
10 | approving with modification, such tariff no later than 240 | ||||||
11 | days after the utility files its tariff. | ||||||
12 | (e) When statewide the total generating capacity of the | ||||||
13 | electricity provider's net metering penetration, as defined in | ||||||
14 | Section 16-107.5, customers is equal to 3%, the Commission | ||||||
15 | shall open an investigation into a an annual process and | ||||||
16 | formula for calculating the compensation value of rebates for | ||||||
17 | the retail customers described in subsections (b) and (f) of | ||||||
18 | this Section that submit rebate applications after the | ||||||
19 | threshold date for an electric utility that elected to file a | ||||||
20 | tariff pursuant to this Section . The investigation shall | ||||||
21 | include , at minimum, diverse sets of stakeholders, a review of | ||||||
22 | best practices in calculating the value of distributed energy | ||||||
23 | resource benefits, and assessments of present and future | ||||||
24 | technological capabilities of distributed energy resources. | ||||||
25 | Compensation shall reflect all known and measurable values of | ||||||
26 | the distributed energy resources over their full expected |
| |||||||
| |||||||
1 | useful lives. Compensation shall reflect, but shall not be | ||||||
2 | limited to, any geographic, time-based, performance-based, and | ||||||
3 | other benefits of distributed energy resources, as well as | ||||||
4 | technological capabilities and present and future grid needs. | ||||||
5 | The Commission's final order concluding this
investigation | ||||||
6 | shall establish a formula for the compensation of
distributed | ||||||
7 | energy resources, and an initial set of inputs for
that | ||||||
8 | formula. The Commission's final order concluding this | ||||||
9 | proceeding shall also direct the utilities to update the | ||||||
10 | formula, on an annual basis, with inputs derived from their | ||||||
11 | integrated grid plans developed pursuant to Section 16-105.17. | ||||||
12 | The Commission shall also determine, as a part of its | ||||||
13 | investigation under this subsection, whether distributed | ||||||
14 | energy resources can provide any additional beneficial uses or | ||||||
15 | services through utility-controlled responses to grid | ||||||
16 | conditions. If the Commission determines that distributed | ||||||
17 | energy resources can provide additional beneficial uses or | ||||||
18 | services, the Commission shall determine the terms and | ||||||
19 | conditions for the operation and compensation of those uses | ||||||
20 | and services. That compensation shall be above and beyond any | ||||||
21 | rebate that the distributed energy resource receives. diverse | ||||||
22 | sets of stakeholders, calculations for valuing distributed | ||||||
23 | energy resource benefits to the grid based on best practices, | ||||||
24 | and assessments of present and future technological | ||||||
25 | capabilities of distributed energy resources. The value of | ||||||
26 | such rebates shall reflect the value of the distributed |
| |||||||
| |||||||
1 | generation to the distribution system at the location at which | ||||||
2 | it is interconnected, taking into account the geographic, | ||||||
3 | time-based, and performance-based benefits, as well as | ||||||
4 | technological capabilities and present and future grid needs. | ||||||
5 | The Commission shall consider the electric utility's | ||||||
6 | integrated grid plan developed pursuant to Section 16-105.17 | ||||||
7 | of this Act to help identify the value of distributed energy | ||||||
8 | resources for the purpose of calculating the rebates described | ||||||
9 | in this subsection. The Commission shall determine additional | ||||||
10 | compensation for distributed generation that creates savings | ||||||
11 | and value on the distribution system by being co-located or in | ||||||
12 | close proximity to electric vehicle charging infrastructure in | ||||||
13 | use by medium-duty and heavy-duty vehicles, primarily serving | ||||||
14 | environmental justice communities, as outlined in the utility | ||||||
15 | integrated grid planning process under Section 16-105.17 of | ||||||
16 | this Act.
No later than 10 days after the Commission enters its | ||||||
17 | final order under this subsection (e), each the utility shall | ||||||
18 | file its tariff or tariffs in compliance with the order, | ||||||
19 | including new tariffs for the recovery of costs incurred under | ||||||
20 | this subsection (e) that shall provide for volumetric-based | ||||||
21 | cost recovery, and the Commission shall approve, or approve | ||||||
22 | with modification, the tariff or tariffs within 240 45 days | ||||||
23 | after the utility's filing. For those rebate applications | ||||||
24 | filed after the threshold date but before the utility's tariff | ||||||
25 | or tariffs filed pursuant to this subsection (e) take effect, | ||||||
26 | the value of the rebate shall remain at the value established |
| |||||||
| |||||||
1 | in subsection (c) of this Section until the tariff is | ||||||
2 | approved. As part of the process, the Commission shall ensure | ||||||
3 | that the distributed generation rebate results in stable | ||||||
4 | growth of both small and large distributed generation projects | ||||||
5 | in Illinois as provided in subsection (j) of Section 16-107.5 | ||||||
6 | of this Act, with particular attention to impacts to the | ||||||
7 | growth of residential distributed generation customers. The | ||||||
8 | Commission has the authority to establish interim rebate | ||||||
9 | values for part or all of a utility's service territory to | ||||||
10 | ensure transparency and stability of compensation for | ||||||
11 | distributed energy resources in the utility's service | ||||||
12 | territory. | ||||||
13 | (f) Notwithstanding any provision of this Act to the | ||||||
14 | contrary, the owner, developer, or subscriber of a generation | ||||||
15 | facility that is part of a net metering program provided under | ||||||
16 | subsection (l) of Section 16-107.5 shall also be eligible to | ||||||
17 | apply for the rebate described in this Section. A subscriber | ||||||
18 | to the generation facility may apply for a rebate in the amount | ||||||
19 | of the subscriber's subscription only if the owner, developer, | ||||||
20 | or previous subscriber to the same panel or panels has not | ||||||
21 | already submitted an application, and, regardless of whether | ||||||
22 | the subscriber is a residential or non-residential customer, | ||||||
23 | may be allowed the amount identified in paragraph (1) of | ||||||
24 | subsection (c) or in subsection (e) of this Section applicable | ||||||
25 | to such customer on the date that the application is | ||||||
26 | submitted. An application for a rebate for a portion of a |
| |||||||
| |||||||
1 | project described in this subsection (f) may be submitted at | ||||||
2 | or after the time that a related request for net metering is | ||||||
3 | made. | ||||||
4 | (g) No later than 60 days after the utility receives an | ||||||
5 | application for a rebate under its tariff approved under | ||||||
6 | subsection (d) or (e) of this Section, the utility shall issue | ||||||
7 | a rebate to the applicant under the terms of the tariff. In the | ||||||
8 | event the application is incomplete or the utility is | ||||||
9 | otherwise unable to calculate the payment based on the | ||||||
10 | information provided by the owner, the utility shall issue the | ||||||
11 | payment no later than 60 days after the application is | ||||||
12 | complete or all requested information is received. | ||||||
13 | (h) An electric utility shall recover from its retail | ||||||
14 | customers all of the costs of the rebates made under a tariff | ||||||
15 | or tariffs approved under subsection (d) of placed into effect | ||||||
16 | under this Section, including, but not limited to, the value | ||||||
17 | of the rebates and all costs incurred by the utility to comply | ||||||
18 | with and implement subsections (b) and (c) of this Section, | ||||||
19 | but not including costs incurred by the utility to comply with | ||||||
20 | and implement subsection (e) of this Section, consistent with | ||||||
21 | the following provisions: | ||||||
22 | (1) The utility shall defer the full amount of its | ||||||
23 | costs incurred under this Section as a regulatory asset. | ||||||
24 | The total costs deferred as a regulatory asset shall be | ||||||
25 | amortized over a 15-year period. The unamortized balance | ||||||
26 | shall be recognized as of December 31 for a given year. The |
| |||||||
| |||||||
1 | utility shall also earn a return on the total of the | ||||||
2 | unamortized balance of the regulatory assets, less any | ||||||
3 | deferred taxes related to the unamortized balance, at an | ||||||
4 | annual rate equal to the utility's weighted average cost | ||||||
5 | of capital that includes, based on a year-end capital | ||||||
6 | structure, the utility's actual cost of debt for the | ||||||
7 | applicable calendar year and a cost of equity, which shall | ||||||
8 | be calculated as the sum of (i) the average for the | ||||||
9 | applicable calendar year of the monthly average yields of | ||||||
10 | 30-year U.S. Treasury bonds published by the Board of | ||||||
11 | Governors of the Federal Reserve System in its weekly H.15 | ||||||
12 | Statistical Release or successor publication; and (ii) 580 | ||||||
13 | basis points, including a revenue conversion factor | ||||||
14 | calculated to recover or refund all additional income | ||||||
15 | taxes that may be payable or receivable as a result of that | ||||||
16 | return. | ||||||
17 | When an electric utility creates a regulatory asset | ||||||
18 | under the provisions of this Section, the costs are | ||||||
19 | recovered over a period during which customers also | ||||||
20 | receive a benefit, which is in the public interest. | ||||||
21 | Accordingly, it is the intent of the General Assembly that | ||||||
22 | an electric utility that elects to create a regulatory | ||||||
23 | asset under the provisions of this Section shall recover | ||||||
24 | all of the associated costs, including, but not limited | ||||||
25 | to, its cost of capital as set forth in this Section. After | ||||||
26 | the Commission has approved the prudence and |
| |||||||
| |||||||
1 | reasonableness of the costs that comprise the regulatory | ||||||
2 | asset, the electric utility shall be permitted to recover | ||||||
3 | all such costs, and the value and recoverability through | ||||||
4 | rates of the associated regulatory asset shall not be | ||||||
5 | limited, altered, impaired, or reduced. To enable the | ||||||
6 | financing of the incremental capital expenditures, | ||||||
7 | including regulatory assets, for electric utilities that | ||||||
8 | serve less than 3,000,000 retail customers but more than | ||||||
9 | 500,000 retail customers in the State, the utility's | ||||||
10 | actual year-end capital structure that includes a common | ||||||
11 | equity ratio, excluding goodwill, of up to and including | ||||||
12 | 50% of the total capital structure shall be deemed | ||||||
13 | reasonable and used to set rates. | ||||||
14 | (2) The utility, at its election, may recover all of | ||||||
15 | the costs it incurs under this Section as part of a filing | ||||||
16 | for a general increase in rates under Article IX of this | ||||||
17 | Act, as part of an annual filing to update a | ||||||
18 | performance-based formula rate under subsection (d) of | ||||||
19 | Section 16-108.5 of this Act, or through an automatic | ||||||
20 | adjustment clause tariff, provided that nothing in this | ||||||
21 | paragraph (2) permits the double recovery of such costs | ||||||
22 | from customers. If the utility elects to recover the costs | ||||||
23 | it incurs under this Section through an automatic | ||||||
24 | adjustment clause tariff, the utility may file its | ||||||
25 | proposed tariff together with the tariff it files under | ||||||
26 | subsection (b) of this Section or at a later time. The |
| |||||||
| |||||||
1 | proposed tariff shall provide for an annual | ||||||
2 | reconciliation, less any deferred taxes related to the | ||||||
3 | reconciliation, with interest at an annual rate of return | ||||||
4 | equal to the utility's weighted average cost of capital as | ||||||
5 | calculated under paragraph (1) of this subsection (h), | ||||||
6 | including a revenue conversion factor calculated to | ||||||
7 | recover or refund all additional income taxes that may be | ||||||
8 | payable or receivable as a result of that return, of the | ||||||
9 | revenue requirement reflected in rates for each calendar | ||||||
10 | year, beginning with the calendar year in which the | ||||||
11 | utility files its automatic adjustment clause tariff under | ||||||
12 | this subsection (h), with what the revenue requirement | ||||||
13 | would have been had the actual cost information for the | ||||||
14 | applicable calendar year been available at the filing | ||||||
15 | date. The Commission shall review the proposed tariff and | ||||||
16 | may make changes to the tariff that are consistent with | ||||||
17 | this Section and with the Commission's authority under | ||||||
18 | Article IX of this Act, subject to notice and hearing. | ||||||
19 | Following notice and hearing, the Commission shall issue | ||||||
20 | an order approving, or approving with modification, such | ||||||
21 | tariff no later than 240 days after the utility files its | ||||||
22 | tariff. | ||||||
23 | (i) An electric utility shall recover from its retail | ||||||
24 | customers, on a volumetric basis, all of the costs of the | ||||||
25 | rebates made under a tariff or tariffs placed into effect | ||||||
26 | under subsection (e) of this Section, including, but not |
| |||||||
| |||||||
1 | limited to, the value of the rebates and all costs incurred by | ||||||
2 | the utility to comply with and implement subsection (e) of | ||||||
3 | this Section, consistent with the following provisions: | ||||||
4 | (1) The utility may defer a portion of its costs as a | ||||||
5 | regulatory asset. The Commission shall determine the | ||||||
6 | portion that may be appropriately deferred as a regulatory | ||||||
7 | asset. Factors that the Commission shall consider in | ||||||
8 | determining the portion of costs that shall be deferred as | ||||||
9 | a regulatory asset include, but are not limited to: (i) | ||||||
10 | whether and the extent to which a cost effectively | ||||||
11 | deferred or avoided other distribution system costs; (ii) | ||||||
12 | the extent to which a cost provides environmental | ||||||
13 | benefits; (iii) the extent to which a cost improves system | ||||||
14 | reliability or resilience; (iv) the electric utility's | ||||||
15 | distribution system plan developed pursuant to Section | ||||||
16 | 16-108.17 of this Act; and (v) such other factors as the | ||||||
17 | Commission deems appropriate. The remainder of costs shall | ||||||
18 | be deemed an operating expense and shall be recoverable if | ||||||
19 | found prudent and reasonable by the Commission. | ||||||
20 | The total costs deferred as a regulatory asset shall | ||||||
21 | be amortized over a 15-year period. The unamortized | ||||||
22 | balance shall be recognized as of December 31 for a given | ||||||
23 | year. The utility shall also earn a return on the total of | ||||||
24 | the unamortized balance of the regulatory assets, less any | ||||||
25 | deferred taxes related to the unamortized balance, at an | ||||||
26 | annual rate equal to the utility's weighted average cost |
| |||||||
| |||||||
1 | of capital that includes, based on a year-end capital | ||||||
2 | structure, the utility's actual cost of debt for the | ||||||
3 | applicable calendar year and a cost of equity, which shall | ||||||
4 | be calculated as the sum of: (I) the average for the | ||||||
5 | applicable calendar year of the monthly average yields of | ||||||
6 | 30-year U.S. Treasury bonds published by the Board of | ||||||
7 | Governors of the Federal Reserve System in its weekly H.15 | ||||||
8 | Statistical Release or successor publication; and (II) 580 | ||||||
9 | basis points, including a revenue conversion factor | ||||||
10 | calculated to recover or refund all additional income | ||||||
11 | taxes that may be payable or receivable as a result of that | ||||||
12 | return. | ||||||
13 | When an electric utility creates a regulatory asset | ||||||
14 | under the provisions of this subsection (i), the costs are | ||||||
15 | recovered over a period during which customers also | ||||||
16 | receive a benefit, which is in the public interest. | ||||||
17 | Accordingly, it is the intent of the General Assembly that | ||||||
18 | an electric utility that elects to create a regulatory | ||||||
19 | asset under the provisions of this Section shall recover | ||||||
20 | all of the associated costs, including, but not limited | ||||||
21 | to, its cost of capital as set forth in this Section. After | ||||||
22 | the Commission has approved the prudence and | ||||||
23 | reasonableness of the costs that comprise the regulatory | ||||||
24 | asset, the electric utility shall be permitted to recover | ||||||
25 | all such costs, and the value and recoverability through | ||||||
26 | rates of the associated regulatory asset shall not be |
| |||||||
| |||||||
1 | limited, altered, impaired, or reduced. To enable the | ||||||
2 | financing of the incremental capital expenditures, | ||||||
3 | including regulatory assets, for electric utilities that | ||||||
4 | serve less than 3,000,000 retail customers but more than | ||||||
5 | 500,000 retail customers in the State, the utility's | ||||||
6 | actual year-end capital structure that includes a common | ||||||
7 | equity ratio, excluding goodwill, of up to and including | ||||||
8 | 50% of the total capital structure shall be deemed | ||||||
9 | reasonable and used to set rates. | ||||||
10 | (2) The utility may recover all of the costs through | ||||||
11 | an automatic adjustment clause tariff, on a volumetric | ||||||
12 | basis. The utility may file its proposed cost-recovery | ||||||
13 | tariff together with the tariff it files under subsection | ||||||
14 | (e) of this Section or at a later time. The proposed tariff | ||||||
15 | shall provide for an annual reconciliation, less any | ||||||
16 | deferred taxes related to the reconciliation, with | ||||||
17 | interest at an annual rate of return equal to the | ||||||
18 | utility's weighted average cost of capital as calculated | ||||||
19 | under paragraph (1) of this subsection (i), including a | ||||||
20 | revenue conversion factor calculated to recover or refund | ||||||
21 | all additional income taxes that may be payable or | ||||||
22 | receivable as a result of that return, of the revenue | ||||||
23 | requirement reflected in rates for each calendar year, | ||||||
24 | beginning with the calendar year in which the utility | ||||||
25 | files its automatic adjustment clause tariff under this | ||||||
26 | subsection (i), with what the revenue requirement would |
| |||||||
| |||||||
1 | have been had the actual cost information for the | ||||||
2 | applicable calendar year been available at the filing | ||||||
3 | date. The Commission shall review the proposed tariff and | ||||||
4 | may make changes to the tariff that are consistent with | ||||||
5 | this Section and with the Commission's authority under | ||||||
6 | Article IX of this Act, subject to notice and hearing. | ||||||
7 | Following notice and hearing, the Commission shall issue | ||||||
8 | an order approving, or approving with modification, such | ||||||
9 | tariff no later than 240 days after the utility files its | ||||||
10 | tariff. | ||||||
11 | (j) (i) No later than 90 days after the Commission enters | ||||||
12 | an order, or order on rehearing, whichever is later, approving | ||||||
13 | an electric utility's proposed tariff under subsection (d) of | ||||||
14 | this Section, the electric utility shall provide notice of the | ||||||
15 | availability of rebates under this Section. Subsequent to the | ||||||
16 | utility's notice, any entity that offers in the State, for | ||||||
17 | sale or lease, distributed generation and estimates the dollar | ||||||
18 | saving attributable to such distributed generation shall | ||||||
19 | provide estimates based on both delivery service credits , if | ||||||
20 | applicable and if available under Section 16-107.5 of this | ||||||
21 | Act, and the rebates available under this Section.
| ||||||
22 | (Source: P.A. 99-906, eff. 6-1-17 .) | ||||||
23 | (220 ILCS 5/16-107.7 new) | ||||||
24 | Sec. 16-107.7. Residential time-of-use pricing. | ||||||
25 | (a) The General Assembly finds that time-of-use rates and |
| |||||||
| |||||||
1 | pricing plans can lower energy costs for consumers and reduce | ||||||
2 | grid costs as well as help Illinois achieve its energy policy | ||||||
3 | goals by improving load shape, encouraging energy | ||||||
4 | conservation, and shifting usage away from periods where | ||||||
5 | fossil fuels are used to meet peak demand. Further, by | ||||||
6 | providing consumers information relating the costs of service | ||||||
7 | to the time of energy usage, time-of-use rates can help | ||||||
8 | consumers reduce their energy bills by using electricity when | ||||||
9 | it is less costly. Time-of-use rates can help allocate | ||||||
10 | electricity system costs more accurately and thus equitably to | ||||||
11 | those who cause costs. Such rates can reduce the need for | ||||||
12 | ramping resources and increase the grid's ability to | ||||||
13 | cost-effectively integrate greater quantities of variable | ||||||
14 | renewable energy and distributed energy resources. | ||||||
15 | (b) An electric utility that has a tariff in effect under | ||||||
16 | Section 16-108.5 as of the effective date of this amendatory | ||||||
17 | Act of the 102nd General Assembly shall also offer at least one | ||||||
18 | market-based, time-of-use rate for eligible retail customers | ||||||
19 | that choose to take power and energy supply service from the | ||||||
20 | utility. The utility shall file its time-of-use rate tariff no | ||||||
21 | later than 120 days after the effective date of this | ||||||
22 | amendatory Act of the 102nd General Assembly, and each utility | ||||||
23 | subject to this requirement shall implement the requirements | ||||||
24 | of this paragraph by filing a tariff with the Commission. The | ||||||
25 | tariff or tariffs shall be subject to the following | ||||||
26 | provisions: |
| |||||||
| |||||||
1 | (1) If more than one tariff is proposed, at least one | ||||||
2 | tariff shall include at least 3 time blocks: a peak time | ||||||
3 | block defined as 2 p.m. to 7 p.m. on nonholiday weekdays or | ||||||
4 | the 5 consecutive hours best reflecting the highest system | ||||||
5 | peak demands, an off-peak time block defined as 10 a.m. to | ||||||
6 | 2 p.m. and 7 p.m. to 10 p.m. on nonholiday weekdays or the | ||||||
7 | 7 total hours, occurring in some combination before and | ||||||
8 | after the peak period, which reflect the next highest | ||||||
9 | system peak demands, and a super-off-peak time block | ||||||
10 | defined as all other hours including weekend days. | ||||||
11 | 2) This tariff shall strive to achieve price ratios | ||||||
12 | between the blocks as follows: the super-off-peak time | ||||||
13 | block price shall be no less than zero but no greater than | ||||||
14 | one-half of the price of the off-peak time block price, | ||||||
15 | and the off-peak time block price shall be no greater than | ||||||
16 | one-half of the price of the peak time block price. | ||||||
17 | (3) The time-of-use rate shall include the costs of | ||||||
18 | electric capacity, costs of transmission services, and | ||||||
19 | charges for network integration transmission service, | ||||||
20 | transmission enhancement, and locational reliability, as | ||||||
21 | these terms are defined in the PJM Interconnection LLC | ||||||
22 | Open Access Transmission Tariff and manuals on January 1, | ||||||
23 | 2019, within the prices for each time block and seasonal | ||||||
24 | block in which the associated costs generally are | ||||||
25 | incurred. If the Open Access Transmission Tariff or | ||||||
26 | manuals subsequently renames those terms, the services |
| |||||||
| |||||||
1 | reflected under those terms shall continue to be included | ||||||
2 | in the time-of-use rate described in this paragraph (2). | ||||||
3 | (4) Adjustments to the charges set by the tariff may | ||||||
4 | be made on a semi-annual basis, as follows: each May and | ||||||
5 | November, the utility shall submit to the Commission, | ||||||
6 | through an informational filing, its updated charges, and | ||||||
7 | such charges shall take effect beginning with the June | ||||||
8 | monthly billing period and December monthly billing | ||||||
9 | period, respectively. | ||||||
10 | (5) The tariff shall include a purchased energy | ||||||
11 | adjustment to fully recover the supply costs for the | ||||||
12 | customers taking service under this tariff. | ||||||
13 | "Eligible customers" includes, but is not limited to, | ||||||
14 | customers participating in net electricity metering under the | ||||||
15 | terms of Section 16-107.5. | ||||||
16 | (c) The Commission shall, after notice and hearing, | ||||||
17 | approve the tariff or tariffs with modifications the | ||||||
18 | Commission finds necessary to improve the program design, | ||||||
19 | customer participation in the program, or coordination with | ||||||
20 | existing utility pricing programs, energy efficiency programs, | ||||||
21 | demand response programs, and any other programs supporting | ||||||
22 | Illinois energy policy goals and the integration of | ||||||
23 | distributed energy resources. The Commission shall also | ||||||
24 | consider how the proposed time-of-use rate design reflects the | ||||||
25 | system costs and usage patterns of the utility. A proceeding | ||||||
26 | under this subsection may not exceed 120 days in length. |
| |||||||
| |||||||
1 | (d) If the Commission issues an order pursuant to this | ||||||
2 | subsection, the affected electric utility shall contract with | ||||||
3 | an entity not affiliated with the electric utility to serve as | ||||||
4 | a program administrator to develop and implement a program to | ||||||
5 | provide consumer outreach, enrollment, and education | ||||||
6 | concerning time-of-use pricing and to establish and administer | ||||||
7 | an information system and technical and other customer | ||||||
8 | assistance that is necessary to enable customers to manage | ||||||
9 | electricity use. The program administrator: (i) shall be | ||||||
10 | selected and compensated by the electric utility, subject to | ||||||
11 | Commission approval; (ii) shall have demonstrated technical | ||||||
12 | and managerial competence in the development and | ||||||
13 | administration of demand management programs; and (iii) may | ||||||
14 | develop and implement risk management, energy efficiency, and | ||||||
15 | other services related to energy use management for which the | ||||||
16 | program administrator shall be compensated by participants in | ||||||
17 | the program receiving such services. The electric utility | ||||||
18 | shall provide the program administrator with all information | ||||||
19 | and assistance necessary to perform the program | ||||||
20 | administrator's duties, including, but not limited to, | ||||||
21 | customer, account, and energy use data. The electric utility | ||||||
22 | shall permit the program administrator to include inserts in | ||||||
23 | residential customer bills 2 times per year to assist with | ||||||
24 | customer outreach and enrollment. | ||||||
25 | The program administrator shall submit an annual report to | ||||||
26 | the electric utility no later than April 1 of each year |
| |||||||
| |||||||
1 | describing the operation and results of the program, including | ||||||
2 | information concerning the number and types of customers using | ||||||
3 | the program, changes in customers' energy use patterns, an | ||||||
4 | assessment of the value of the program to both participants | ||||||
5 | and nonparticipants, and recommendations concerning | ||||||
6 | modification of the program and the tariff or tariffs filed | ||||||
7 | under this Section. This report shall be filed by the electric | ||||||
8 | utility with the Commission within 30 days after receipt and | ||||||
9 | shall be available to the public on the Commission's website. | ||||||
10 | (e) Once the tariff or tariffs has been in effect for 24 | ||||||
11 | months, the Commission may, upon complaint, petition, or its | ||||||
12 | own initiative, open a proceeding to investigate whether | ||||||
13 | changes or modifications to the tariff or tariffs, program | ||||||
14 | administration and any other program design element is | ||||||
15 | necessary to achieve the goals described in subsection (a) of | ||||||
16 | this Section. Such a proceeding may not last more than 120 days | ||||||
17 | from the date upon which the investigation is opened by | ||||||
18 | Commission order. | ||||||
19 | (f) An electric utility shall be entitled to recover | ||||||
20 | reasonable costs incurred in complying with this Section, | ||||||
21 | provided that recovery of the costs is fairly apportioned | ||||||
22 | among its residential customers. | ||||||
23 | (g) The electric utility's tariff or tariffs filed | ||||||
24 | pursuant to this Section shall be subject to the provisions of | ||||||
25 | Article IX of this Act insofar as they do not conflict with | ||||||
26 | this Section. |
| |||||||
| |||||||
1 | (h) This Section does not apply to any electric utility | ||||||
2 | providing service to 100,000 or fewer customers. | ||||||
3 | (220 ILCS 5/16-107.8 new) | ||||||
4 | Sec. 16-107.8. Beneficial electrification. | ||||||
5 | (a) It is the intent of the General Assembly to decrease | ||||||
6 | reliance on fossil fuels, reduce pollution from the | ||||||
7 | transportation sector, increase access to electrification for | ||||||
8 | all consumers, and ensure that electric vehicle adoption and | ||||||
9 | increased electricity usage and demand do not place | ||||||
10 | significant additional burdens on the electric system and | ||||||
11 | create benefits for Illinois residents. | ||||||
12 | (b) As used in this Section: | ||||||
13 | "Beneficial electrification programs" means programs that | ||||||
14 | lower carbon dioxide emissions, replace fossil fuel use, | ||||||
15 | create cost savings, improve electric grid operations, reduce | ||||||
16 | increases to peak demand, improve electric usage load shape, | ||||||
17 | and align electric usage with times of renewable generation. | ||||||
18 | All beneficial electrification programs shall provide for | ||||||
19 | incentives such that customers are induced to use electricity | ||||||
20 | at times of low overall system usage or at times when | ||||||
21 | generation from renewable energy sources is high. "Beneficial | ||||||
22 | electrification programs" include a portfolio of the | ||||||
23 | following: | ||||||
24 | (1) time-of-use electric rates; | ||||||
25 | (2) hourly pricing electric rates; |
| |||||||
| |||||||
1 | (3) charging plans or rates set by electric vehicle | ||||||
2 | service providers that encourage off-peak charging; | ||||||
3 | (4) optimized charging programs or programs that | ||||||
4 | encourage charging at times beneficial to the electric | ||||||
5 | grid; | ||||||
6 | (5) demand-response programs specifically related to | ||||||
7 | electrification efforts; | ||||||
8 | (6) incentives for electrification and associated | ||||||
9 | infrastructure tied to using electricity at beneficial | ||||||
10 | times; | ||||||
11 | (7) incentives for electrification and associated | ||||||
12 | infrastructure targeted to medium-duty and heavy-duty | ||||||
13 | vehicles used by transit agencies; | ||||||
14 | (8) incentives for electrification and associated | ||||||
15 | infrastructure targeted to school buses; | ||||||
16 | (9) incentives for electrification and associated | ||||||
17 | infrastructure for medium-duty and heavy-duty government | ||||||
18 | and private fleet vehicles; | ||||||
19 | (10) low-income programs that provide access to | ||||||
20 | electric vehicles for communities where car ownership or | ||||||
21 | new car ownership is not common; | ||||||
22 | (11) incentives for electrification in low-income and | ||||||
23 | environmental justice communities; | ||||||
24 | (12) incentives or programs to enable quicker adoption | ||||||
25 | of electric vehicles by developing public charging | ||||||
26 | stations in dense areas, workplaces, and in low-income |
| |||||||
| |||||||
1 | communities; | ||||||
2 | (13) incentives or programs to develop electric | ||||||
3 | vehicles infrastructure to ensure electric vehicles can | ||||||
4 | travel statewide, filling the gaps in deployment, | ||||||
5 | particularly in rural areas or along highway corridors; | ||||||
6 | (14) incentives or planning to encourage the | ||||||
7 | development in close proximity of electrification and | ||||||
8 | renewable energy generation to reduce grid impacts; and | ||||||
9 | (15) other such programs as defined by the Commission. | ||||||
10 | "Disadvantaged participant contractor" has the meaning set | ||||||
11 | forth in Clean Jobs, Workforce and Contractor Equity Act. | ||||||
12 | "Displaced energy worker" has the meaning set forth in | ||||||
13 | Section 20-10 of the Energy Community Reinvestment Act. | ||||||
14 | "Environmental justice communities" means the definition | ||||||
15 | of that term based on existing methodologies and findings, | ||||||
16 | used and as may be updated by the Illinois Power Agency and its | ||||||
17 | program administrator in the Illinois Solar for All Program. | ||||||
18 | "Labor peace agreement" means an agreement between an | ||||||
19 | entity and any labor organization recognized under the | ||||||
20 | National Labor Relations Act, referred to in this Act as a bona | ||||||
21 | fide labor organization, that may prohibit labor organizations | ||||||
22 | and members from engaging in picketing, work stoppages, | ||||||
23 | boycotts, and any other economic interference with the entity. | ||||||
24 | This agreement means that the entity has agreed not to disrupt | ||||||
25 | efforts by the bona fide labor organization to communicate | ||||||
26 | with, and attempt to organize and represent, the entity's |
| |||||||
| |||||||
1 | employees. The agreement shall provide a bona fide labor | ||||||
2 | organization access at reasonable times to areas in which the | ||||||
3 | entity's employees work, for the purpose of meeting with | ||||||
4 | employees to discuss their right to representation, employment | ||||||
5 | rights under State law, and terms and conditions of | ||||||
6 | employment. This type of agreement shall not mandate a | ||||||
7 | particular method of election or certification of the bona | ||||||
8 | fide labor organization. | ||||||
9 | "Low-income" means persons and families whose income does | ||||||
10 | not exceed 80% of area median income, adjusted for family size | ||||||
11 | and revised every 2 years. | ||||||
12 | "Optimized charging programs" mean programs whereby owners | ||||||
13 | of electric vehicles can set their vehicles to be charged | ||||||
14 | based on the electric system's current demand, retail or | ||||||
15 | wholesale market rates, incentives, the carbon or other | ||||||
16 | pollution intensity of the electric generation mix, the | ||||||
17 | provision of grid services, efficient use of the electric | ||||||
18 | grid, or the availability of clean energy generation. | ||||||
19 | Optimized charging programs may be operated by utilities as | ||||||
20 | well as third parties. | ||||||
21 | "BIPOC" and "black, indigenous, and people of color" are | ||||||
22 | identical in meaning and have the same definition as used in | ||||||
23 | the Clean Jobs, Workforce and Contractor Equity Act. | ||||||
24 | (c) No later than November 30, 2021, electric utilities | ||||||
25 | serving greater than 500,000 customers in the State shall | ||||||
26 | initiate a stakeholder workshop process to solicit input on |
| |||||||
| |||||||
1 | the design of beneficial electrification programs that the | ||||||
2 | utility shall offer. The stakeholder workshop process shall | ||||||
3 | take into consideration the benefits of electric vehicle | ||||||
4 | adoption and barriers to adoption, including: | ||||||
5 | (1) the benefit of lower bills for customers who do | ||||||
6 | not charge electric vehicles; | ||||||
7 | (2) benefits from electric vehicle usage of the | ||||||
8 | distribution system; | ||||||
9 | (3) the avoidance and reduction in capacity costs from | ||||||
10 | optimized charging and off-peak charging; | ||||||
11 | (4) energy price and cost reductions; and | ||||||
12 | (5) environmental benefits, including greenhouse gas | ||||||
13 | emission and other pollution reductions. | ||||||
14 | (6) current barriers to mass-market adoption, | ||||||
15 | including cost of ownership and availability of charging | ||||||
16 | stations; | ||||||
17 | (7) benefits of and incentives for medium-duty and | ||||||
18 | heavy-duty fleet vehicle electrification; | ||||||
19 | (8) opportunities for environmental justice and | ||||||
20 | low-income communities to benefit from electrification. | ||||||
21 | The workshops should consider barriers, incentives, | ||||||
22 | enabling rate structures, and other opportunities for the | ||||||
23 | bill reduction and environmental benefits described in | ||||||
24 | this subsection. | ||||||
25 | Stakeholders and the electric utilities shall propose | ||||||
26 | discrete beneficial electrification programs and shall provide |
| |||||||
| |||||||
1 | estimates of the costs and benefits of those programs in the | ||||||
2 | workshops. The process shall be open and transparent with | ||||||
3 | inclusion of stakeholder interests, including stakeholders | ||||||
4 | representing environmental justice and low-income communities. | ||||||
5 | (d) No later than May 31, 2022, electric utilities serving | ||||||
6 | greater than 500,000 customers in the State shall file a | ||||||
7 | Beneficial Electrification Plan with the Illinois Commerce | ||||||
8 | Commission for programs that start no later than January 1, | ||||||
9 | 2023. The Beneficial Electrification Plan shall specifically | ||||||
10 | address, at a minimum, the following: | ||||||
11 | (1) the development and implementation of time-of-use | ||||||
12 | rates and their benefit for electric vehicle users and for | ||||||
13 | all customers; | ||||||
14 | (2) the development of optimized charging programs to | ||||||
15 | achieve savings identified, and new contracts and | ||||||
16 | compensation for services in those programs, through | ||||||
17 | signals that allow electric vehicle charging to respond to | ||||||
18 | local system conditions, manage critical peak periods, | ||||||
19 | serve as a demand response or peak resource, and maximize | ||||||
20 | renewable energy use and integration into the grid; | ||||||
21 | (3) plans to address environmental justice interests | ||||||
22 | and the provision of opportunities for residents and | ||||||
23 | businesses in environmental justice communities to | ||||||
24 | directly benefit from transportation electrification; | ||||||
25 | (4) financial and other challenges to electric vehicle | ||||||
26 | usage in low-income communities, and strategies for |
| |||||||
| |||||||
1 | overcoming those challenges, particularly in communities | ||||||
2 | and for people for whom car ownership is not an option; | ||||||
3 | (5) plans to increase access to Level 3 Public | ||||||
4 | Electric Vehicle Charging Infrastructure located along | ||||||
5 | transportation corridors to serve vehicles that need | ||||||
6 | quicker charging times and vehicles of persons who have no | ||||||
7 | other access to charging infrastructure, regardless of | ||||||
8 | whether those projects participate in optimized charging | ||||||
9 | programs; | ||||||
10 | (6) opportunities for coordination and cohesion with | ||||||
11 | electric vehicle and electric vehicle charging equipment | ||||||
12 | incentives established by any agency, department, board, | ||||||
13 | or commission of the State of Illinois, any other unit of | ||||||
14 | government in the State, any national programs, or any | ||||||
15 | unit of the federal government; | ||||||
16 | (7) ideas for the development of online tools, | ||||||
17 | applications, and data sharing that provide essential | ||||||
18 | information to those charging electric vehicles, and | ||||||
19 | enable an automated charging response to price signals, | ||||||
20 | emission signals, real-time renewable generation | ||||||
21 | production, and other Commission-approved or | ||||||
22 | customer-desired indicators of beneficial charging times; | ||||||
23 | and | ||||||
24 | (8) an outline of proposed customer education | ||||||
25 | measures, including a shadow billing option to allow | ||||||
26 | customers to compare current and historical monthly bills |
| |||||||
| |||||||
1 | under different rate plans, cost calculators to compare | ||||||
2 | electric vehicles costs with internal combustion engine | ||||||
3 | vehicle costs, the use of utility communications for | ||||||
4 | proactive customer engagement on electric vehicles, rate | ||||||
5 | and cost comparison information materials for car dealers | ||||||
6 | and their customers, and direct outreach to diverse | ||||||
7 | communities through community and other organizations. | ||||||
8 | (e) The initial Beneficial Electrification Plans submitted | ||||||
9 | under subsection (d) shall include at least the following | ||||||
10 | programs: | ||||||
11 | (1) Electric Vehicle Access for All Program. Electric | ||||||
12 | utilities that serve more than 3,000,000 retail customers | ||||||
13 | in the State shall reimburse $7,500,000 per year, or 15% | ||||||
14 | of the total plan budget, to the Department of Commerce | ||||||
15 | and Economic Opportunity for programs developed under the | ||||||
16 | Electric Vehicle Access for All Program. Electric | ||||||
17 | utilities that serve less than 3,000,000 retail customers | ||||||
18 | but more than 500,000 retail customers in the State shall | ||||||
19 | reimburse $3,150,000, or 15% of the total plan budget, to | ||||||
20 | the Department of Commerce and Economic Opportunity for | ||||||
21 | programs developed under the Electric Vehicle for All | ||||||
22 | Program. | ||||||
23 | (2) Medium-Duty and Heavy-Duty Vehicle Charging | ||||||
24 | Programs. Electric utilities that serve more than | ||||||
25 | 3,000,000 retail customers in the State must offer a | ||||||
26 | rebate program that averages $25,000,000 per year, or 50% |
| |||||||
| |||||||
1 | of the program budget, for the duration of the plan for | ||||||
2 | rebates to government entity retail customers to support | ||||||
3 | the electrification of public transit, as well as | ||||||
4 | government, commercial and school bus fleet vehicles. | ||||||
5 | Electric utilities that serve less than 3,000,000 retail | ||||||
6 | customers but more than 500,000 retail customers in the | ||||||
7 | State shall reimburse $10,500,000, or 50% of the program | ||||||
8 | budget, for the duration of the plan for rebates to | ||||||
9 | government entity retail customers to support the | ||||||
10 | electrification of public transit, as well as government, | ||||||
11 | commercial and school bus fleet vehicles. Rebates for | ||||||
12 | public transit agencies must be used toward the purchase | ||||||
13 | and installation of all-electric transit buses, the | ||||||
14 | purchase and installation of electric vehicle charging | ||||||
15 | infrastructure, or necessary supporting infrastructure, to | ||||||
16 | be used in transit routes that primarily serve low-income | ||||||
17 | communities or environmental justice communities. The | ||||||
18 | amount of the rebate should be designed to cover the | ||||||
19 | expected capital gap and needs of Illinois transit | ||||||
20 | agencies. Rebates for government, commercial, or other | ||||||
21 | retail customers to support the electrification of fleets | ||||||
22 | and school buses must be used toward the purchase and | ||||||
23 | installation of electric transit or school buses, electric | ||||||
24 | vehicle charging infrastructure, or necessary supporting | ||||||
25 | infrastructure, for vehicles that primarily serve or | ||||||
26 | travel through low-income communities or environmental |
| |||||||
| |||||||
1 | justice communities. Recipients of rebates under this | ||||||
2 | paragraph must participate in an optimized charging | ||||||
3 | program. Operations, whether private or public, that | ||||||
4 | primarily serve governmental or educational institutions, | ||||||
5 | shall be prioritized over commercial vehicle operations | ||||||
6 | that do not primarily serve a governmental or educational | ||||||
7 | institution. | ||||||
8 | (3) Mass-market program. All electric utilities | ||||||
9 | serving more than 500,000 customers may spend up to the | ||||||
10 | remaining plan budget each year on rebates that support | ||||||
11 | the widespread adoption and integration of electric | ||||||
12 | vehicles. Electric utilities serving more than 500,000 | ||||||
13 | customers may offer a rebate program that offers retail | ||||||
14 | customers a rebate of up to $500 for the purchase or | ||||||
15 | installation of electric vehicle charging infrastructure, | ||||||
16 | provided that the customer takes electric service under an | ||||||
17 | hourly pricing program or a time-of-use rate, or | ||||||
18 | participates in an optimized charging program. Further, | ||||||
19 | electric utilities serving more than 500,000 customers | ||||||
20 | shall offer a rebate program to incentivize the purchase | ||||||
21 | and installation of publicly accessible electric vehicle | ||||||
22 | charging stations throughout its service territory, with a | ||||||
23 | prioritization for workplace charging and public charging | ||||||
24 | in dense urban areas and in low-income communities. | ||||||
25 | Finally, electric utilities serving more than 500,000 | ||||||
26 | customers shall offer a rebate program to incentivize the |
| |||||||
| |||||||
1 | development of publicly accessible fast charging stations | ||||||
2 | targeted to fill the gaps in deployment, and along State | ||||||
3 | highway corridors. | ||||||
4 | (f) The Commission shall open an investigation into the | ||||||
5 | electric utility's (if serving more than 500,000 customers) | ||||||
6 | Beneficial Electrification Plan to determine if the proposed | ||||||
7 | plan is cost-beneficial. The plan shall be determined to be | ||||||
8 | cost-beneficial if the total cost of beneficial | ||||||
9 | electrification expenditures is less than the net present | ||||||
10 | value of increased electricity costs (defined as marginal | ||||||
11 | avoided energy, avoided capacity, and avoided transmission and | ||||||
12 | distribution system costs) avoided by programs under the plan, | ||||||
13 | the net present value of reductions in other customer energy | ||||||
14 | costs, and the societal value of reduced carbon emissions and | ||||||
15 | surface-level pollutants, particularly in environmental | ||||||
16 | justice communities. The calculation of costs and benefits | ||||||
17 | should be based on net impacts. The Commission shall review | ||||||
18 | the Plan and determine whether the portfolio of programs or | ||||||
19 | initiatives as a whole is optimized to address all key policy | ||||||
20 | objectives, including: maximizing total energy cost savings, | ||||||
21 | maximizing rate reductions so that nonparticipants can | ||||||
22 | benefit, facilitating better grid management, maximizing | ||||||
23 | carbon emission reductions, reducing other harmful emissions | ||||||
24 | and particularly localized emissions in economically | ||||||
25 | disadvantaged and environmental justice communities, and | ||||||
26 | addressing environmental justice interests by ensuring there |
| |||||||
| |||||||
1 | are significant opportunities for residents and businesses in | ||||||
2 | environmental justice communities to directly participate in | ||||||
3 | and benefit from programs. | ||||||
4 | (g) Any electric utility serving more than 500,000 | ||||||
5 | customers shall update its Beneficial Electrification Plan | ||||||
6 | every 3 years and, beginning with the first update, shall | ||||||
7 | develop the Plan in conjunction with the distribution system | ||||||
8 | planning process described in Section 16-105.17 of this Act, | ||||||
9 | including incorporation of stakeholder feedback from that | ||||||
10 | process. | ||||||
11 | (h) For utilities serving more than 3,000,000 retail | ||||||
12 | customers in the State, the annual total cost of all programs | ||||||
13 | and initiatives in the Beneficial Electrification Plan shall | ||||||
14 | not exceed $50,000,000 per year and shall be recovered | ||||||
15 | volumetrically from all retail customers as an operating | ||||||
16 | expense in its Multi-Year Rate Plan. For utilities serving | ||||||
17 | less than 3,000,000 retail customers, but more than 500,000 | ||||||
18 | retail customers, the annual total cost of all programs and | ||||||
19 | initiatives in the Beneficial Electrification Plan shall not | ||||||
20 | exceed $21,000,000 per year and shall be recovered | ||||||
21 | volumetrically from all retail customers as an operating | ||||||
22 | expense in its Multi-Year Rate Plan. | ||||||
23 | (i) In meeting the requirements of this Section, to the | ||||||
24 | extent feasible and consistent with State and federal law, all | ||||||
25 | beneficial electrification programs included in Beneficial | ||||||
26 | Electrification Plans shall provide employment opportunities |
| |||||||
| |||||||
1 | for all segments of the population and workforce, including | ||||||
2 | BIPOC-owned and women-owned business enterprises, as well as | ||||||
3 | BIPOC-owned and women-owned worker-owned cooperatives or other | ||||||
4 | such employee-owned entities, and shall not, consistent with | ||||||
5 | State and federal law, discriminate based on race or | ||||||
6 | socioeconomic status. | ||||||
7 | Specifically, to the extent feasible and consistent with | ||||||
8 | State and federal law, as utilities conduct selection and | ||||||
9 | contracting of businesses, nonprofit organizations, or | ||||||
10 | worker-owned cooperatives for implementation of beneficial | ||||||
11 | electrification programs or projects providing electrification | ||||||
12 | for vehicles and associated electric vehicle infrastructure, | ||||||
13 | utilities must give preference to businesses, nonprofit | ||||||
14 | organizations, or worker-owned cooperatives as described in | ||||||
15 | the workforce equity actions points calculation as specified | ||||||
16 | in this subsection (i). Utilities shall track and award equity | ||||||
17 | actions in selection of businesses, nonprofit organizations, | ||||||
18 | or worker-owned cooperatives, using a points system totaling a | ||||||
19 | maximum of 235 points. This system shall consider both equity | ||||||
20 | actions to meet the goals described in this Section and the bid | ||||||
21 | prices, as specified in paragraphs (1) through (9) of this | ||||||
22 | subsection (i). Businesses, nonprofit organizations, and | ||||||
23 | worker-owned cooperatives that are selected and contracted for | ||||||
24 | implementation of beneficial electrification programs or | ||||||
25 | projects providing electrification for vehicles and associated | ||||||
26 | electric vehicle infrastructure by utilities shall submit no |
| |||||||
| |||||||
1 | later than June 1 of each applicable year an annual report of | ||||||
2 | elements described in the equity actions points calculation in | ||||||
3 | paragraphs (1) through (9) of this subsection (i) for the | ||||||
4 | first 3 years after the year in which installation contracts | ||||||
5 | were awarded. | ||||||
6 | (1) Hiring Equity Action (up to 20 points): awarded based | ||||||
7 | on the percentage of the company's or entity's workforce | ||||||
8 | (measured by full-time equivalents as defined by the | ||||||
9 | Government Accountability Office of the United States | ||||||
10 | Congress) are black, indigenous, and people of color and are | ||||||
11 | paid at or above the prevailing wage. One point shall be | ||||||
12 | awarded for each 5% of the workforce which is composed of BIPOC | ||||||
13 | persons who are also paid at or above the prevailing wage, up | ||||||
14 | to a maximum of 20 points. | ||||||
15 | (2) Clean Jobs Workforce Hubs and Returning Residents | ||||||
16 | Action (up to 20 points): awarded based on the percentage of | ||||||
17 | the workers associated with the project who are graduates or | ||||||
18 | trainees from the Clean Jobs Workforce Hubs Network Program, | ||||||
19 | or the Returning Residents Clean Jobs Training Program, or | ||||||
20 | equivalent certification, and paid at or above the prevailing | ||||||
21 | wage; one point shall be awarded for each 5% of the workforce | ||||||
22 | which is composed of Clean Jobs Workforce Hubs Network Program | ||||||
23 | graduates or trainees or Returning Residents Clean Jobs | ||||||
24 | Training Program graduates or trainees who are also paid a | ||||||
25 | living wage, up to a maximum of 20 points. | ||||||
26 | (3) BIPOC Business Enterprise Action (30 points): being |
| |||||||
| |||||||
1 | (i) an entity defined as a minority-owned business under | ||||||
2 | Section 2 of the Business Enterprise for Minorities, Women, | ||||||
3 | and Persons with Disabilities Act or (ii) an entity, including | ||||||
4 | a business, a nonprofit, or a worker-owned cooperative | ||||||
5 | registered with other state, regional, or local programs | ||||||
6 | intended to certify minority-owned entities. | ||||||
7 | (4) Contracting Equity Action (20 points): awarded based | ||||||
8 | on the percentage of the company's or entity's subcontractors | ||||||
9 | or vendors are entities defined as a minority-owned business | ||||||
10 | or a women-owned business under Section 2 of the Business | ||||||
11 | Enterprise for Minorities, Women, and Persons with | ||||||
12 | Disabilities Act or on the percentage of the subcontracted | ||||||
13 | workers associated with the project, including from all | ||||||
14 | subcontractors and vendors, are BIPOC persons (members of a | ||||||
15 | racial or ethnic minority group) paid at or above the | ||||||
16 | prevailing wage; 5 points shall be awarded for each 10% of | ||||||
17 | either subcontractors or subcontractors' workers who are BIPOC | ||||||
18 | persons, whichever is greater, up to a maximum of 20 points. If | ||||||
19 | a company or entity does not use subcontractors or vendors, | ||||||
20 | points awarded for the Contracting Equity Action shall be | ||||||
21 | equivalent to the point value awarded for the Hiring Equity | ||||||
22 | Action under paragraph(1). | ||||||
23 | (5) Expanding Clean Energy Entrepreneurship Action (20 | ||||||
24 | points): awarded to entities who are current or former | ||||||
25 | disadvantaged participant contractors in the Expanding Clean | ||||||
26 | Energy Entrepreneurship and Contractor Incubators Network |
| |||||||
| |||||||
1 | Program or current or former participants in the Illinois | ||||||
2 | Clean Energy Black, Indigenous, and People of Color Primes | ||||||
3 | Contractor Accelerator Program. | ||||||
4 | (6) Community Benefits Action (15 points): (i) for | ||||||
5 | projects 100 kW in size or larger, project has an executed | ||||||
6 | Community Benefits Agreement that could include, but is not | ||||||
7 | limited to a commitment to hire local workers, union workers, | ||||||
8 | energy workers transitioning to clean energy jobs, Clean Jobs | ||||||
9 | Workforce Hubs Network Program graduates, or current or former | ||||||
10 | disadvantaged participant contractors in the Expanding Clean | ||||||
11 | Energy Entrepreneurship and Contractor Incubators Network | ||||||
12 | Program; a commitment to pay workers at or above the | ||||||
13 | prevailing wage; and a commitment to give communities | ||||||
14 | ownership opportunities in electric vehicle projects, where | ||||||
15 | relevant; and (ii) for projects under 100 kW in size, | ||||||
16 | companies pay their workforces at or above the prevailing | ||||||
17 | wage. | ||||||
18 | (7) Small Business Action (15 points): the entity's | ||||||
19 | workforce is composed of 3 or fewer full-time employees | ||||||
20 | (measured by full-time equivalents as defined by the | ||||||
21 | Government Accountability Office of the United States | ||||||
22 | Congress). | ||||||
23 | (8) Labor Peace Agreements Action (10 points): (i) for an | ||||||
24 | installer with 20 or more employees: the installer attests | ||||||
25 | that the installer has entered into a labor peace agreement, | ||||||
26 | will abide by the terms of the agreement, and will submit a |
| |||||||
| |||||||
1 | copy of the page of the labor peace agreement that contains the | ||||||
2 | signatures of the union representative and the installer, or | ||||||
3 | (ii) for an installer that is a party to a labor peace | ||||||
4 | agreement with a bona fide labor organization that currently | ||||||
5 | represents, or is actively seeking to represent electric | ||||||
6 | vehicle infrastructure and equipment installers and other | ||||||
7 | workers in Illinois, or (iii) the installer submits an | ||||||
8 | attestation affirming that the installer will use best efforts | ||||||
9 | to use union labor in the installer's projects and in the | ||||||
10 | construction or retrofit of the facilities associated with the | ||||||
11 | installer's electric vehicle infrastructure and equipment | ||||||
12 | operations, where applicable. | ||||||
13 | (9) Price of bid (130 points): as scored by utilities | ||||||
14 | awarding contracts to electric vehicle installers. | ||||||
15 | Bids scoring fewer than 135 points shall not be awarded | ||||||
16 | contracts.
| ||||||
17 | (220 ILCS 5/16-108)
| ||||||
18 | Sec. 16-108. Recovery of costs associated with the
| ||||||
19 | provision of delivery and other services. | ||||||
20 | (a) An electric utility shall file a delivery services
| ||||||
21 | tariff with the Commission at least 210 days prior to the date
| ||||||
22 | that it is required to begin offering such services pursuant
| ||||||
23 | to this Act. An electric utility shall provide the components
| ||||||
24 | of delivery services that are subject to the jurisdiction of
| ||||||
25 | the Federal Energy Regulatory Commission at the same prices,
|
| |||||||
| |||||||
1 | terms and conditions set forth in its applicable tariff as
| ||||||
2 | approved or allowed into effect by that Commission. The
| ||||||
3 | Commission shall otherwise have the authority pursuant to | ||||||
4 | Article IX to review,
approve, and modify the prices, terms | ||||||
5 | and conditions of those
components of delivery services not | ||||||
6 | subject to the
jurisdiction of the Federal Energy Regulatory | ||||||
7 | Commission,
including the authority to determine the extent to | ||||||
8 | which such
delivery services should be offered on an unbundled | ||||||
9 | basis. In making any such
determination the Commission shall | ||||||
10 | consider, at a minimum, the effect of
additional unbundling on | ||||||
11 | (i) the objective of just and reasonable rates, (ii)
electric | ||||||
12 | utility employees, and (iii) the development of competitive | ||||||
13 | markets
for electric energy services in Illinois.
| ||||||
14 | (b) The Commission shall enter an order approving, or
| ||||||
15 | approving as modified, the delivery services tariff no later
| ||||||
16 | than 30 days prior to the date on which the electric utility
| ||||||
17 | must commence offering such services. The Commission may
| ||||||
18 | subsequently modify such tariff pursuant to this Act.
| ||||||
19 | (c) The electric utility's
tariffs shall define the | ||||||
20 | classes of its customers for purposes
of delivery services | ||||||
21 | charges. Delivery services shall be priced and made
available | ||||||
22 | to all retail customers electing delivery services in each | ||||||
23 | such class
on a nondiscriminatory basis regardless of whether | ||||||
24 | the retail customer chooses
the electric utility, an affiliate | ||||||
25 | of the electric utility, or another entity
as its supplier of | ||||||
26 | electric power and energy. Charges for delivery services
shall |
| |||||||
| |||||||
1 | be cost based,
and shall allow the electric utility to recover | ||||||
2 | the costs of
providing delivery services through its charges | ||||||
3 | to its
delivery service customers that use the facilities and
| ||||||
4 | services associated with such costs.
Such costs shall include | ||||||
5 | the
costs of owning, operating and maintaining transmission | ||||||
6 | and
distribution facilities. The Commission shall also be
| ||||||
7 | authorized to consider whether, and if so to what extent, the
| ||||||
8 | following costs are appropriately included in the electric
| ||||||
9 | utility's delivery services rates: (i) the costs of that
| ||||||
10 | portion of generation facilities used for the production and
| ||||||
11 | absorption of reactive power in order that retail customers
| ||||||
12 | located in the electric utility's service area can receive
| ||||||
13 | electric power and energy from suppliers other than the
| ||||||
14 | electric utility, and (ii) the costs associated with the use
| ||||||
15 | and redispatch of generation facilities to mitigate
| ||||||
16 | constraints on the transmission or distribution system in
| ||||||
17 | order that retail customers located in the electric utility's
| ||||||
18 | service area can receive electric power and energy from
| ||||||
19 | suppliers other than the electric utility. Nothing in this
| ||||||
20 | subsection shall be construed as directing the Commission to
| ||||||
21 | allocate any of the costs described in (i) or (ii) that are
| ||||||
22 | found to be appropriately included in the electric utility's
| ||||||
23 | delivery services rates to any particular customer group or
| ||||||
24 | geographic area in setting delivery services rates.
| ||||||
25 | (d) The Commission shall establish charges, terms and
| ||||||
26 | conditions for delivery services that are just and reasonable
|
| |||||||
| |||||||
1 | and shall take into account customer impacts when establishing
| ||||||
2 | such charges. In establishing charges, terms and conditions
| ||||||
3 | for delivery services, the Commission shall take into account
| ||||||
4 | voltage level differences. A retail customer shall have the
| ||||||
5 | option to request to purchase electric service at any delivery
| ||||||
6 | service voltage reasonably and technically feasible from the
| ||||||
7 | electric facilities serving that customer's premises provided
| ||||||
8 | that there are no significant adverse impacts upon system
| ||||||
9 | reliability or system efficiency. A retail customer shall
also | ||||||
10 | have the option to request to purchase electric service
at any | ||||||
11 | point of delivery that is reasonably and technically
feasible | ||||||
12 | provided that there are no significant adverse
impacts on | ||||||
13 | system reliability or efficiency. Such requests
shall not be | ||||||
14 | unreasonably denied.
| ||||||
15 | (e) Electric utilities shall recover the costs of
| ||||||
16 | installing, operating or maintaining facilities for the
| ||||||
17 | particular benefit of one or more delivery services customers,
| ||||||
18 | including without limitation any costs incurred in complying
| ||||||
19 | with a customer's request to be served at a different voltage
| ||||||
20 | level, directly from the retail customer or customers for
| ||||||
21 | whose benefit the costs were incurred, to the extent such
| ||||||
22 | costs are not recovered through the charges referred to in
| ||||||
23 | subsections (c) and (d) of this Section.
| ||||||
24 | (f) An electric utility shall be entitled but not
required | ||||||
25 | to implement transition charges in conjunction with
the | ||||||
26 | offering of delivery services pursuant to Section 16-104.
If |
| |||||||
| |||||||
1 | an electric utility implements transition charges, it shall | ||||||
2 | implement such
charges for all delivery services customers and | ||||||
3 | for all customers described in
subsection (h), but shall not | ||||||
4 | implement transition charges for power and
energy that a | ||||||
5 | retail customer takes from cogeneration or self-generation
| ||||||
6 | facilities located on that retail customer's premises, if such | ||||||
7 | facilities meet
the following criteria:
| ||||||
8 | (i) the cogeneration or self-generation facilities | ||||||
9 | serve a single retail
customer and are located on that | ||||||
10 | retail customer's premises (for purposes of
this | ||||||
11 | subparagraph and subparagraph (ii), an industrial or | ||||||
12 | manufacturing retail
customer and a third party contractor | ||||||
13 | that is served by such industrial or
manufacturing | ||||||
14 | customer through such retail customer's own electrical
| ||||||
15 | distribution facilities under the circumstances described | ||||||
16 | in subsection (vi) of
the definition of "alternative | ||||||
17 | retail electric supplier" set forth in Section
16-102, | ||||||
18 | shall be considered a single retail customer);
| ||||||
19 | (ii) the cogeneration or self-generation facilities | ||||||
20 | either (A) are sized
pursuant to generally accepted | ||||||
21 | engineering standards for the retail customer's
electrical | ||||||
22 | load at that premises (taking into account standby or | ||||||
23 | other
reliability considerations related to that retail | ||||||
24 | customer's operations at that
site) or (B) if the facility | ||||||
25 | is a cogeneration facility located on the retail
| ||||||
26 | customer's premises, the retail customer is the thermal |
| |||||||
| |||||||
1 | host for that facility
and the facility has been designed | ||||||
2 | to meet that retail customer's thermal
energy requirements | ||||||
3 | resulting in electrical output beyond that retail
| ||||||
4 | customer's electrical demand at that premises, comply with | ||||||
5 | the operating and
efficiency standards applicable to | ||||||
6 | "qualifying facilities" specified in title
18 Code of | ||||||
7 | Federal Regulations Section 292.205 as in effect on the | ||||||
8 | effective
date of this amendatory Act of 1999;
| ||||||
9 | (iii) the retail customer on whose premises the | ||||||
10 | facilities are located
either has an exclusive right to | ||||||
11 | receive, and corresponding obligation to pay
for, all of | ||||||
12 | the electrical capacity of the facility, or in the case of | ||||||
13 | a
cogeneration facility that has been designed to meet the | ||||||
14 | retail customer's
thermal energy requirements at that | ||||||
15 | premises, an identified amount of the
electrical capacity | ||||||
16 | of the facility, over a minimum 5-year period; and
| ||||||
17 | (iv) if the cogeneration facility is sized for the
| ||||||
18 | retail customer's thermal load at that premises but | ||||||
19 | exceeds the electrical
load, any sales of excess power or | ||||||
20 | energy are made only at wholesale, are
subject to the | ||||||
21 | jurisdiction of the Federal Energy Regulatory Commission, | ||||||
22 | and
are not for the purpose of circumventing the | ||||||
23 | provisions of this subsection (f).
| ||||||
24 | If a generation facility located at a retail customer's | ||||||
25 | premises does not meet
the above criteria, an electric utility | ||||||
26 | implementing
transition charges shall implement a transition |
| |||||||
| |||||||
1 | charge until December 31, 2006
for any power and energy taken | ||||||
2 | by such retail customer from such facility as if
such power and | ||||||
3 | energy had been delivered by the electric utility. Provided,
| ||||||
4 | however, that an industrial retail customer that is taking | ||||||
5 | power from a
generation facility that does not meet the above | ||||||
6 | criteria but that is located
on such customer's premises will | ||||||
7 | not be subject to a transition charge for the
power and energy | ||||||
8 | taken by such retail customer from such generation facility if
| ||||||
9 | the facility does not serve any other retail customer and | ||||||
10 | either was installed
on behalf of the customer and for its own | ||||||
11 | use prior to January 1, 1997, or is
both predominantly fueled | ||||||
12 | by byproducts of such customer's manufacturing
process at such | ||||||
13 | premises and sells or offers an average of 300 megawatts or
| ||||||
14 | more of electricity produced from such generation facility | ||||||
15 | into the wholesale
market.
Such charges
shall be calculated as | ||||||
16 | provided in Section
16-102, and shall be collected
on each | ||||||
17 | kilowatt-hour delivered under a
delivery services tariff to a | ||||||
18 | retail customer from the date
the customer first takes | ||||||
19 | delivery services until December 31,
2006 except as provided | ||||||
20 | in subsection (h) of this Section.
Provided, however, that an | ||||||
21 | electric utility, other than an electric utility
providing | ||||||
22 | service to at least 1,000,000 customers in this State on | ||||||
23 | January 1,
1999,
shall be entitled to petition for
entry of an | ||||||
24 | order by the Commission authorizing the electric utility to
| ||||||
25 | implement transition charges for an additional period ending | ||||||
26 | no later than
December 31, 2008. The electric utility shall |
| |||||||
| |||||||
1 | file its petition with
supporting evidence no earlier than 16 | ||||||
2 | months, and no later than 12 months,
prior to December 31, | ||||||
3 | 2006. The Commission shall hold a hearing on the
electric | ||||||
4 | utility's petition and shall enter its order no later than 8 | ||||||
5 | months
after the petition is filed. The Commission shall | ||||||
6 | determine whether and to
what extent the electric utility | ||||||
7 | shall be authorized to implement transition
charges for an | ||||||
8 | additional period. The Commission may authorize the electric
| ||||||
9 | utility to implement transition charges for some or all of the | ||||||
10 | additional
period, and shall determine the mitigation factors | ||||||
11 | to be used in implementing
such transition charges; provided, | ||||||
12 | that the Commission shall not authorize
mitigation factors | ||||||
13 | less than 110% of those in effect during the 12 months ended
| ||||||
14 | December 31, 2006. In making its determination, the Commission | ||||||
15 | shall consider
the following factors: the necessity to | ||||||
16 | implement transition charges for an
additional period in order | ||||||
17 | to maintain the financial integrity of the electric
utility; | ||||||
18 | the prudence of the electric utility's actions in reducing its | ||||||
19 | costs
since the effective date of this amendatory Act of 1997; | ||||||
20 | the ability of the
electric utility to provide safe, adequate | ||||||
21 | and reliable service to retail
customers in its service area; | ||||||
22 | and the impact on competition of allowing the
electric utility | ||||||
23 | to implement transition charges for the additional period.
| ||||||
24 | (g) The electric utility shall file tariffs that
establish | ||||||
25 | the transition charges to be paid by each class of
customers to | ||||||
26 | the electric utility in conjunction with the
provision of |
| |||||||
| |||||||
1 | delivery services. The electric utility's tariffs
shall define | ||||||
2 | the classes of its customers for purposes of
calculating | ||||||
3 | transition charges. The electric utility's tariffs
shall | ||||||
4 | provide for the calculation of transition charges on a
| ||||||
5 | customer-specific basis for any retail customer whose average
| ||||||
6 | monthly maximum electrical demand on the electric utility's
| ||||||
7 | system during the 6 months with the customer's highest monthly
| ||||||
8 | maximum electrical demands equals or exceeds 3.0 megawatts for
| ||||||
9 | electric utilities having more than 1,000,000 customers, and
| ||||||
10 | for other electric utilities for any customer that has an
| ||||||
11 | average monthly maximum electrical demand on the electric
| ||||||
12 | utility's system of one megawatt or more, and (A) for which
| ||||||
13 | there exists data on the customer's usage during the 3 years
| ||||||
14 | preceding the date that the customer became eligible to take
| ||||||
15 | delivery services, or (B) for which there does not exist data
| ||||||
16 | on the customer's usage during the 3 years preceding the date
| ||||||
17 | that the customer became eligible to take delivery services,
| ||||||
18 | if in the electric utility's reasonable judgment there exists
| ||||||
19 | comparable usage information or a sufficient basis to develop
| ||||||
20 | such information, and further provided that the electric
| ||||||
21 | utility can require customers for which an individual
| ||||||
22 | calculation is made to sign contracts that set forth the
| ||||||
23 | transition charges to be paid by the customer to the electric
| ||||||
24 | utility pursuant to the tariff.
| ||||||
25 | (h) An electric utility shall also be entitled to file
| ||||||
26 | tariffs that allow it to collect transition charges from
|
| |||||||
| |||||||
1 | retail customers in the electric utility's service area that
| ||||||
2 | do not take delivery services but that take electric power or
| ||||||
3 | energy from an alternative retail electric supplier or from an
| ||||||
4 | electric utility other than the electric utility in whose
| ||||||
5 | service area the customer is located. Such charges shall be
| ||||||
6 | calculated, in accordance with the definition of transition
| ||||||
7 | charges in Section 16-102, for the period of time that the
| ||||||
8 | customer would be obligated to pay transition charges if it
| ||||||
9 | were taking delivery services, except that no deduction for
| ||||||
10 | delivery services revenues shall be made in such calculation,
| ||||||
11 | and usage data from the customer's class shall be used where
| ||||||
12 | historical usage data is not available for the individual
| ||||||
13 | customer. The customer shall be obligated to pay such charges
| ||||||
14 | on a lump sum basis on or before the date on which the
customer | ||||||
15 | commences to take service from the alternative retail
electric | ||||||
16 | supplier or other electric utility, provided, that
the | ||||||
17 | electric utility in whose service area the customer is
located | ||||||
18 | shall offer the customer the option of signing a
contract | ||||||
19 | pursuant to which the customer pays such charges
ratably over | ||||||
20 | the period in which the charges would otherwise
have applied.
| ||||||
21 | (i) An electric utility shall be entitled to add to the
| ||||||
22 | bills of delivery services customers charges pursuant to
| ||||||
23 | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | ||||||
24 | and Section
16-114 of this Act, Section 5-5 of the Electricity | ||||||
25 | Infrastructure Maintenance
Fee Law, Section 6-5 of the | ||||||
26 | Renewable Energy, Energy Efficiency, and Coal
Resources |
| |||||||
| |||||||
1 | Development Law of 1997, and Section 13 of the Energy | ||||||
2 | Assistance Act.
| ||||||
3 | (j) If a retail customer that obtains electric power and
| ||||||
4 | energy from cogeneration or self-generation facilities
| ||||||
5 | installed for its own use on or before January 1, 1997,
| ||||||
6 | subsequently takes service from an alternative retail electric
| ||||||
7 | supplier or an electric utility other than the electric
| ||||||
8 | utility in whose service area the customer is located for any
| ||||||
9 | portion of the customer's electric power and energy
| ||||||
10 | requirements formerly obtained from those facilities | ||||||
11 | (including that amount
purchased from the utility in lieu of | ||||||
12 | such generation and not as standby power
purchases, under a | ||||||
13 | cogeneration displacement tariff in effect as of the
effective | ||||||
14 | date of this amendatory Act of 1997), the
transition charges | ||||||
15 | otherwise applicable pursuant to subsections (f), (g), or
(h) | ||||||
16 | of this Section shall not be applicable
in any year to that | ||||||
17 | portion of the customer's electric power
and energy | ||||||
18 | requirements formerly obtained from those
facilities, | ||||||
19 | provided, that for purposes of this subsection
(j), such | ||||||
20 | portion shall not exceed the average number of
kilowatt-hours | ||||||
21 | per year obtained from the cogeneration or
self-generation | ||||||
22 | facilities during the 3 years prior to the
date on which the | ||||||
23 | customer became eligible for delivery
services, except as | ||||||
24 | provided in subsection (f) of Section
16-110.
| ||||||
25 | (k) The electric utility shall be entitled to recover | ||||||
26 | through tariffed charges all of the costs associated with the |
| |||||||
| |||||||
1 | purchase of zero emission credits from zero emission | ||||||
2 | facilities to meet the requirements of subsection (d-5) of | ||||||
3 | Section 1-75 of the Illinois Power Agency Act. Such costs | ||||||
4 | shall include the costs of procuring the zero emission | ||||||
5 | credits, as well as the reasonable costs that the utility | ||||||
6 | incurs as part of the procurement processes and to implement | ||||||
7 | and comply with plans and processes approved by the Commission | ||||||
8 | under such subsection (d-5). The costs shall be allocated | ||||||
9 | across all retail customers through a single, uniform cents | ||||||
10 | per kilowatt-hour charge applicable to all retail customers, | ||||||
11 | which shall appear as a separate line item on each customer's | ||||||
12 | bill. Beginning June 1, 2017, the electric utility shall be | ||||||
13 | entitled to recover through tariffed charges all of the costs | ||||||
14 | associated with the purchase of renewable energy resources to | ||||||
15 | meet the long-term goals and targets of the renewable energy | ||||||
16 | resource standards of subsection (c) of Section 1-75 of the | ||||||
17 | Illinois Power Agency Act, under procurement plans as approved | ||||||
18 | in accordance with that Section and Section 16-111.5 of this | ||||||
19 | Act. Such costs shall include the costs of procuring the | ||||||
20 | renewable energy resources, as well as the reasonable costs | ||||||
21 | that the utility incurs as part of the procurement processes | ||||||
22 | and to implement and comply with plans and processes approved | ||||||
23 | by the Commission under such Sections. The costs associated | ||||||
24 | with the purchase of renewable energy resources shall be | ||||||
25 | allocated across all retail customers in proportion to the | ||||||
26 | amount of renewable energy resources the utility procures for |
| |||||||
| |||||||
1 | such customers through a single, uniform cents per | ||||||
2 | kilowatt-hour charge applicable to such retail customers, | ||||||
3 | which shall appear as a separate line item on each such | ||||||
4 | customer's bill. | ||||||
5 | Notwithstanding whether the Commission has approved the | ||||||
6 | initial long-term renewable resources procurement plan as of | ||||||
7 | June 1, 2017, an electric utility shall place new tariffed | ||||||
8 | charges into effect beginning with the June 2017 monthly | ||||||
9 | billing period, to the extent practicable, to begin recovering | ||||||
10 | the costs of procuring renewable energy resources, as those | ||||||
11 | charges are calculated under the limitations described in | ||||||
12 | subparagraph (E) of paragraph (1) of subsection (c) of Section | ||||||
13 | 1-75 of the Illinois Power Agency Act. Notwithstanding the | ||||||
14 | date on which the utility places such new tariffed charges | ||||||
15 | into effect, the utility shall be permitted to collect the | ||||||
16 | charges under such tariff as if the tariff had been in effect | ||||||
17 | beginning with the first day of the June 2017 monthly billing | ||||||
18 | period. Money collected from customers for the procurement of | ||||||
19 | renewable energy resources in a given delivery may be spent by | ||||||
20 | the utility for the procurement of renewable resources over | ||||||
21 | any of the following 5 delivery years, after which money shall | ||||||
22 | be credited back to retail customers, provided that up to | ||||||
23 | $170,000,000 of funds collected, but not used, in a given | ||||||
24 | delivery year are first made available to the Illinois Solar | ||||||
25 | for All Program established under subsection (b) of Section | ||||||
26 | 1-56 of the Illinois Power Agency Act to cover budget |
| |||||||
| |||||||
1 | shortfalls due to unexpected fluctuations in the amount of | ||||||
2 | money available to that Program from the Illinois Power Agency | ||||||
3 | Renewable Energy Resources Fund. The electric utility shall | ||||||
4 | spend all money collected in earlier delivery years that has | ||||||
5 | not yet been returned to customers, first, before spending | ||||||
6 | money collected in later delivery years. The For the delivery | ||||||
7 | years commencing June 1, 2017, June 1, 2018, and June 1, 2019, | ||||||
8 | the electric utility shall deposit into a separate interest | ||||||
9 | bearing account of a financial institution the monies | ||||||
10 | collected under the tariffed charges. Any interest earned | ||||||
11 | shall be credited back to retail customers under the | ||||||
12 | reconciliation proceeding provided for in this subsection (k), | ||||||
13 | provided that the electric utility shall first be reimbursed | ||||||
14 | from the interest for the administrative costs that it incurs | ||||||
15 | to administer and manage the account. Any taxes due on the | ||||||
16 | funds in the account, or interest earned on it, will be paid | ||||||
17 | from the account or, if insufficient monies are available in | ||||||
18 | the account, from the monies collected under the tariffed | ||||||
19 | charges to recover the costs of procuring renewable energy | ||||||
20 | resources. Monies deposited in the account shall be subject to | ||||||
21 | the review, reconciliation, and true-up process described in | ||||||
22 | this subsection (k) that is applicable to the funds collected | ||||||
23 | and costs incurred for the procurement of renewable energy | ||||||
24 | resources. | ||||||
25 | The electric utility shall be entitled to recover all of | ||||||
26 | the costs identified in this subsection (k) through automatic |
| |||||||
| |||||||
1 | adjustment clause tariffs applicable to all of the utility's | ||||||
2 | retail customers that allow the electric utility to adjust its | ||||||
3 | tariffed charges consistent with this subsection (k). The | ||||||
4 | determination as to whether any excess funds were collected | ||||||
5 | during a given delivery year for the purchase of renewable | ||||||
6 | energy resources, and the crediting of any excess funds back | ||||||
7 | to retail customers, shall not be made until after the close of | ||||||
8 | the delivery year, which will ensure that the maximum amount | ||||||
9 | of funds is available to implement the approved long-term | ||||||
10 | renewable resources procurement plan during a given delivery | ||||||
11 | year. The electric utility's collections under such automatic | ||||||
12 | adjustment clause tariffs to recover the costs of renewable | ||||||
13 | energy resources and zero emission credits from zero emission | ||||||
14 | facilities shall be subject to separate annual review, | ||||||
15 | reconciliation, and true-up against actual costs by the | ||||||
16 | Commission under a procedure that shall be specified in the | ||||||
17 | electric utility's automatic adjustment clause tariffs and | ||||||
18 | that shall be approved by the Commission in connection with | ||||||
19 | its approval of such tariffs. The procedure shall provide that | ||||||
20 | any difference between the electric utility's collections for | ||||||
21 | zero emission credits under the automatic adjustment charges | ||||||
22 | for an annual period and the electric utility's actual costs | ||||||
23 | of renewable energy resources and zero emission credits from | ||||||
24 | zero emission facilities for that same annual period shall be | ||||||
25 | refunded to or collected from, as applicable, the electric | ||||||
26 | utility's retail customers in subsequent periods. |
| |||||||
| |||||||
1 | Nothing in this subsection (k) is intended to affect, | ||||||
2 | limit, or change the right of the electric utility to recover | ||||||
3 | the costs associated with the procurement of renewable energy | ||||||
4 | resources for periods commencing before, on, or after June 1, | ||||||
5 | 2017, as otherwise provided in the Illinois Power Agency Act. | ||||||
6 | Notwithstanding anything to the contrary, the Commission | ||||||
7 | shall not conduct an annual review, reconciliation, and | ||||||
8 | true-up associated with renewable energy resources' | ||||||
9 | collections and costs for the delivery years commencing June | ||||||
10 | 1, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and | ||||||
11 | shall instead conduct a single review, reconciliation, and | ||||||
12 | true-up associated with renewable energy resources' | ||||||
13 | collections and costs for the 4-year period beginning June 1, | ||||||
14 | 2017 and ending May 31, 2021, provided that the review, | ||||||
15 | reconciliation, and true-up shall not be initiated until after | ||||||
16 | August 31, 2021. During the 4-year period, the utility shall | ||||||
17 | be permitted to collect and retain funds under this subsection | ||||||
18 | (k) and to purchase renewable energy resources under an | ||||||
19 | approved long-term renewable resources procurement plan using | ||||||
20 | those funds regardless of the delivery year in which the funds | ||||||
21 | were collected during the 4-year period. | ||||||
22 | If the amount of funds collected during the delivery year | ||||||
23 | commencing June 1, 2017, exceeds the costs incurred during | ||||||
24 | that delivery year, then up to half of this excess amount, as | ||||||
25 | calculated on June 1, 2018, may be used to fund the programs | ||||||
26 | under subsection (b) of Section 1-56 of the Illinois Power |
| |||||||
| |||||||
1 | Agency Act in the same proportion the programs are funded | ||||||
2 | under that subsection (b). However, any amount identified | ||||||
3 | under this subsection (k) to fund programs under subsection | ||||||
4 | (b) of Section 1-56 of the Illinois Power Agency Act shall be | ||||||
5 | reduced if it exceeds the funding shortfall. For purposes of | ||||||
6 | this Section, "funding shortfall" means the difference between | ||||||
7 | $200,000,000 and the amount appropriated by the General | ||||||
8 | Assembly to the Illinois Power Agency Renewable Energy | ||||||
9 | Resources Fund during the period that commences on the | ||||||
10 | effective date of this amendatory act of the 99th General | ||||||
11 | Assembly and ends on August 1, 2018. | ||||||
12 | If the amount of funds collected during the delivery year | ||||||
13 | commencing June 1, 2018, exceeds the costs incurred during | ||||||
14 | that delivery year, then up to half of this excess amount, as | ||||||
15 | calculated on June 1, 2019, may be used to fund the programs | ||||||
16 | under subsection (b) of Section 1-56 of the Illinois Power | ||||||
17 | Agency Act in the same proportion the programs are funded | ||||||
18 | under that subsection (b). However, any amount identified | ||||||
19 | under this subsection (k) to fund programs under subsection | ||||||
20 | (b) of Section 1-56 of the Illinois Power Agency Act shall be | ||||||
21 | reduced if it exceeds the funding shortfall. | ||||||
22 | If the amount of funds collected during the delivery year | ||||||
23 | commencing June 1, 2019, exceeds the costs incurred during | ||||||
24 | that delivery year, then up to half of this excess amount, as | ||||||
25 | calculated on June 1, 2020, may be used to fund the programs | ||||||
26 | under subsection (b) of Section 1-56 of the Illinois Power |
| |||||||
| |||||||
1 | Agency Act in the same proportion the programs are funded | ||||||
2 | under that subsection (b). However, any amount identified | ||||||
3 | under this subsection (k) to fund programs under subsection | ||||||
4 | (b) of Section 1-56 of the Illinois Power Agency Act shall be | ||||||
5 | reduced if it exceeds the funding shortfall. | ||||||
6 | The funding available under this subsection (k), if any, | ||||||
7 | for the programs described under subsection (b) of Section | ||||||
8 | 1-56 of the Illinois Power Agency Act shall not reduce the | ||||||
9 | amount of funding for the programs described in subparagraph | ||||||
10 | (O) of paragraph (1) of subsection (c) of Section 1-75 of the | ||||||
11 | Illinois Power Agency Act. If funding is available under this | ||||||
12 | subsection (k) for programs described under subsection (b) of | ||||||
13 | Section 1-56 of the Illinois Power Agency Act, then the | ||||||
14 | long-term renewable resources plan shall provide for the | ||||||
15 | Agency to procure contracts in an amount that does not exceed | ||||||
16 | the funding, and the contracts approved by the Commission | ||||||
17 | shall be executed by the applicable utility or utilities. | ||||||
18 | (l) A utility that has terminated any contract executed | ||||||
19 | under subsection (d-5) of Section 1-75 of the Illinois Power | ||||||
20 | Agency Act shall be entitled to recover any remaining balance | ||||||
21 | associated with the purchase of zero emission credits prior to | ||||||
22 | such termination, and such utility shall also apply a credit | ||||||
23 | to its retail customer bills in the event of any | ||||||
24 | over-collection. | ||||||
25 | (m)(1) An electric utility that recovers its costs of | ||||||
26 | procuring zero emission credits from zero emission |
| |||||||
| |||||||
1 | facilities through a cents-per-kilowatthour charge under | ||||||
2 | to subsection (k) of this Section shall be subject to the | ||||||
3 | requirements of this subsection (m). Notwithstanding | ||||||
4 | anything to the contrary, such electric utility shall, | ||||||
5 | beginning on April 30, 2018, and each April 30 thereafter | ||||||
6 | until April 30, 2026, calculate whether any reduction must | ||||||
7 | be applied to such cents-per-kilowatthour charge that is | ||||||
8 | paid by retail customers of the electric utility that are | ||||||
9 | exempt from subsections (a) through (j) of Section 8-103B | ||||||
10 | of this Act under subsection (l) of Section 8-103B. Such | ||||||
11 | charge shall be reduced for such customers for the next | ||||||
12 | delivery year commencing on June 1 based on the amount | ||||||
13 | necessary, if any, to limit the annual estimated average | ||||||
14 | net increase for the prior calendar year due to the future | ||||||
15 | energy investment costs to no more than 1.3% of 5.98 cents | ||||||
16 | per kilowatt-hour, which is the average amount paid per | ||||||
17 | kilowatthour for electric service during the year ending | ||||||
18 | December 31, 2015 by Illinois industrial retail customers, | ||||||
19 | as reported to the Edison Electric Institute. | ||||||
20 | The calculations required by this subsection (m) shall | ||||||
21 | be made only once for each year, and no subsequent rate | ||||||
22 | impact determinations shall be made. | ||||||
23 | (2) For purposes of this Section, "future energy | ||||||
24 | investment costs" shall be calculated by subtracting the | ||||||
25 | cents-per-kilowatthour charge identified in subparagraph | ||||||
26 | (A) of this paragraph (2) from the sum of the |
| |||||||
| |||||||
1 | cents-per-kilowatthour charges identified in subparagraph | ||||||
2 | (B) of this paragraph (2): | ||||||
3 | (A) The cents-per-kilowatthour charge identified | ||||||
4 | in the electric utility's tariff placed into effect | ||||||
5 | under Section 8-103 of the Public Utilities Act that, | ||||||
6 | on December 1, 2016, was applicable to those retail | ||||||
7 | customers that are exempt from subsections (a) through | ||||||
8 | (j) of Section 8-103B of this Act under subsection (l) | ||||||
9 | of Section 8-103B. | ||||||
10 | (B) The sum of the following | ||||||
11 | cents-per-kilowatthour charges applicable to those | ||||||
12 | retail customers that are exempt from subsections (a) | ||||||
13 | through (j) of Section 8-103B of this Act under | ||||||
14 | subsection (l) of Section 8-103B, provided that if one | ||||||
15 | or more of the following charges has been in effect and | ||||||
16 | applied to such customers for more than one calendar | ||||||
17 | year, then each charge shall be equal to the average of | ||||||
18 | the charges applied over a period that commences with | ||||||
19 | the calendar year ending December 31, 2017 and ends | ||||||
20 | with the most recently completed calendar year prior | ||||||
21 | to the calculation required by this subsection (m): | ||||||
22 | (i) the cents-per-kilowatthour charge to | ||||||
23 | recover the costs incurred by the utility under | ||||||
24 | subsection (d-5) of Section 1-75 of the Illinois | ||||||
25 | Power Agency Act, adjusted for any reductions | ||||||
26 | required under this subsection (m); and |
| |||||||
| |||||||
1 | (ii) the cents-per-kilowatthour charge to | ||||||
2 | recover the costs incurred by the utility under | ||||||
3 | Section 16-107.6 of the Public Utilities Act. | ||||||
4 | If no charge was applied for a given calendar year | ||||||
5 | under item (i) or (ii) of this subparagraph (B), then | ||||||
6 | the value of the charge for that year shall be zero. | ||||||
7 | (3) If a reduction is required by the calculation | ||||||
8 | performed under this subsection (m), then the amount of | ||||||
9 | the reduction shall be multiplied by the number of years | ||||||
10 | reflected in the averages calculated under subparagraph | ||||||
11 | (B) of paragraph (2) of this subsection (m). Such | ||||||
12 | reduction shall be applied to the cents-per-kilowatthour | ||||||
13 | charge that is applicable to those retail customers that | ||||||
14 | are exempt from subsections (a) through (j) of Section | ||||||
15 | 8-103B of this Act under subsection (l) of Section 8-103B | ||||||
16 | beginning with the next delivery year commencing after the | ||||||
17 | date of the calculation required by this subsection (m). | ||||||
18 | (4) The electric utility shall file a notice with the | ||||||
19 | Commission on May 1 of 2018 and each May 1 thereafter until | ||||||
20 | May 1, 2026 containing the reduction, if any, which must | ||||||
21 | be applied for the delivery year which begins in the year | ||||||
22 | of the filing. The notice shall contain the calculations | ||||||
23 | made pursuant to this Section. By October 1 of each year | ||||||
24 | beginning in 2018, each electric utility shall notify the | ||||||
25 | Commission if it appears, based on an estimate of the | ||||||
26 | calculation required in this subsection (m), that a |
| |||||||
| |||||||
1 | reduction will be required in the next year. | ||||||
2 | (Source: P.A. 99-906, eff. 6-1-17 .)
| ||||||
3 | (220 ILCS 5/16-108.5) | ||||||
4 | Sec. 16-108.5. Infrastructure investment and | ||||||
5 | modernization; regulatory reform. | ||||||
6 | (a) (Blank). | ||||||
7 | (b) For purposes of this Section, "participating utility" | ||||||
8 | means an electric utility or a combination utility serving | ||||||
9 | more than 1,000,000 customers in Illinois that voluntarily | ||||||
10 | elects and commits to undertake (i) the infrastructure | ||||||
11 | investment program consisting of the commitments and | ||||||
12 | obligations described in this subsection (b) and (ii) the | ||||||
13 | customer assistance program consisting of the commitments and | ||||||
14 | obligations described in subsection (b-10) of this Section, | ||||||
15 | notwithstanding any other provisions of this Act and without | ||||||
16 | obtaining any approvals from the Commission or any other | ||||||
17 | agency other than as set forth in this Section, regardless of | ||||||
18 | whether any such approval would otherwise be required. | ||||||
19 | "Combination utility" means a utility that, as of January 1, | ||||||
20 | 2011, provided electric service to at least one million retail | ||||||
21 | customers in Illinois and gas service to at least 500,000 | ||||||
22 | retail customers in Illinois. A participating utility shall | ||||||
23 | recover the expenditures made under the infrastructure | ||||||
24 | investment program through the ratemaking process, including, | ||||||
25 | but not limited to, the performance-based formula rate and |
| |||||||
| |||||||
1 | process set forth in this Section. | ||||||
2 | During the infrastructure investment program's peak | ||||||
3 | program year, a participating utility other than a combination | ||||||
4 | utility shall create 2,000 full-time equivalent jobs in | ||||||
5 | Illinois, and a participating utility that is a combination | ||||||
6 | utility shall create 450 full-time equivalent jobs in Illinois | ||||||
7 | related to the provision of electric service. These jobs shall | ||||||
8 | include direct jobs, contractor positions, and induced jobs, | ||||||
9 | but shall not include any portion of a job commitment, not | ||||||
10 | specifically contingent on an amendatory Act of the 97th | ||||||
11 | General Assembly becoming law, between a participating utility | ||||||
12 | and a labor union that existed on December 30, 2011 (the | ||||||
13 | effective date of Public Act 97-646) and that has not yet been | ||||||
14 | fulfilled. A portion of the full-time equivalent jobs created | ||||||
15 | by each participating utility shall include incremental | ||||||
16 | personnel hired subsequent to December 30, 2011 (the effective | ||||||
17 | date of Public Act 97-646). For purposes of this Section, | ||||||
18 | "peak program year" means the consecutive 12-month period with | ||||||
19 | the highest number of full-time equivalent jobs that occurs | ||||||
20 | between the beginning of investment year 2 and the end of | ||||||
21 | investment year 4. | ||||||
22 | A participating utility shall meet one of the following | ||||||
23 | commitments, as applicable: | ||||||
24 | (1) Beginning no later than 180 days after a | ||||||
25 | participating utility other than a combination utility | ||||||
26 | files a performance-based formula rate tariff pursuant to |
| |||||||
| |||||||
1 | subsection (c) of this Section, or, beginning no later | ||||||
2 | than January 1, 2012 if such utility files such | ||||||
3 | performance-based formula rate tariff within 14 days of | ||||||
4 | October 26, 2011 (the effective date of Public Act | ||||||
5 | 97-616), the participating utility shall, except as | ||||||
6 | provided in subsection (b-5): | ||||||
7 | (A) over a 5-year period, invest an estimated | ||||||
8 | $1,300,000,000 in electric system upgrades, | ||||||
9 | modernization projects, and training facilities, | ||||||
10 | including, but not limited to: | ||||||
11 | (i) distribution infrastructure improvements | ||||||
12 | totaling an estimated $1,000,000,000, including | ||||||
13 | underground residential distribution cable | ||||||
14 | injection and replacement and mainline cable | ||||||
15 | system refurbishment and replacement projects; | ||||||
16 | (ii) training facility construction or upgrade | ||||||
17 | projects totaling an estimated $10,000,000, | ||||||
18 | provided that, at a minimum, one such facility | ||||||
19 | shall be located in a municipality having a | ||||||
20 | population of more than 2 million residents and | ||||||
21 | one such facility shall be located in a | ||||||
22 | municipality having a population of more than | ||||||
23 | 150,000 residents but fewer than 170,000 | ||||||
24 | residents; any such new facility located in a | ||||||
25 | municipality having a population of more than 2 | ||||||
26 | million residents must be designed for the purpose |
| |||||||
| |||||||
1 | of obtaining, and the owner of the facility shall | ||||||
2 | apply for, certification under the United States | ||||||
3 | Green Building Council's Leadership in Energy | ||||||
4 | Efficiency Design Green Building Rating System; | ||||||
5 | (iii) wood pole inspection, treatment, and | ||||||
6 | replacement programs; | ||||||
7 | (iv) an estimated $200,000,000 for reducing | ||||||
8 | the susceptibility of certain circuits to | ||||||
9 | storm-related damage, including, but not limited | ||||||
10 | to, high winds, thunderstorms, and ice storms; | ||||||
11 | improvements may include, but are not limited to, | ||||||
12 | overhead to underground conversion and other | ||||||
13 | engineered outcomes for circuits; the | ||||||
14 | participating utility shall prioritize the | ||||||
15 | selection of circuits based on each circuit's | ||||||
16 | historical susceptibility to storm-related damage | ||||||
17 | and the ability to provide the greatest customer | ||||||
18 | benefit upon completion of the improvements; to be | ||||||
19 | eligible for improvement, the participating | ||||||
20 | utility's ability to maintain proper tree | ||||||
21 | clearances surrounding the overhead circuit must | ||||||
22 | not have
been impeded by third parties; and | ||||||
23 | (B) over a 10-year period, invest an estimated | ||||||
24 | $1,300,000,000 to upgrade and modernize its | ||||||
25 | transmission and distribution infrastructure and in | ||||||
26 | Smart Grid electric system upgrades, including, but |
| |||||||
| |||||||
1 | not limited to: | ||||||
2 | (i) additional smart meters; | ||||||
3 | (ii) distribution automation; | ||||||
4 | (iii) associated cyber secure data | ||||||
5 | communication network; and | ||||||
6 | (iv) substation micro-processor relay | ||||||
7 | upgrades. | ||||||
8 | (2) Beginning no later than 180 days after a | ||||||
9 | participating utility that is a combination utility files | ||||||
10 | a performance-based formula rate tariff pursuant to | ||||||
11 | subsection (c) of this Section, or, beginning no later | ||||||
12 | than January 1, 2012 if such utility files such | ||||||
13 | performance-based formula rate tariff within 14 days of | ||||||
14 | October 26, 2011 (the effective date of Public Act | ||||||
15 | 97-616), the participating utility shall, except as | ||||||
16 | provided in subsection (b-5): | ||||||
17 | (A) over a 10-year period, invest an estimated | ||||||
18 | $265,000,000 in electric system upgrades, | ||||||
19 | modernization projects, and training facilities, | ||||||
20 | including, but not limited to: | ||||||
21 | (i) distribution infrastructure improvements | ||||||
22 | totaling an estimated $245,000,000, which may | ||||||
23 | include bulk supply substations, transformers, | ||||||
24 | reconductoring, and rebuilding overhead | ||||||
25 | distribution and sub-transmission lines, | ||||||
26 | underground residential distribution cable |
| |||||||
| |||||||
1 | injection and replacement and mainline cable | ||||||
2 | system refurbishment and replacement projects; | ||||||
3 | (ii) training facility construction or upgrade | ||||||
4 | projects totaling an estimated $1,000,000; any | ||||||
5 | such new facility must be designed for the purpose | ||||||
6 | of obtaining, and the owner of the facility shall | ||||||
7 | apply for, certification under the United States | ||||||
8 | Green Building Council's Leadership in Energy | ||||||
9 | Efficiency Design Green Building Rating System; | ||||||
10 | and | ||||||
11 | (iii) wood pole inspection, treatment, and | ||||||
12 | replacement programs; and | ||||||
13 | (B) over a 10-year period, invest an estimated | ||||||
14 | $360,000,000 to upgrade and modernize its transmission | ||||||
15 | and distribution infrastructure and in Smart Grid | ||||||
16 | electric system upgrades, including, but not limited | ||||||
17 | to: | ||||||
18 | (i) additional smart meters; | ||||||
19 | (ii) distribution automation; | ||||||
20 | (iii) associated cyber secure data | ||||||
21 | communication network; and | ||||||
22 | (iv) substation micro-processor relay | ||||||
23 | upgrades. | ||||||
24 | For purposes of this Section, "Smart Grid electric system | ||||||
25 | upgrades" shall have the meaning set forth in subsection (a) | ||||||
26 | of Section 16-108.6 of this Act. |
| |||||||
| |||||||
1 | The investments in the infrastructure investment program | ||||||
2 | described in this subsection (b) shall be incremental to the | ||||||
3 | participating utility's annual capital investment program, as | ||||||
4 | defined by, for purposes of this subsection (b), the | ||||||
5 | participating utility's average capital spend for calendar | ||||||
6 | years 2008, 2009, and 2010 as reported in the applicable | ||||||
7 | Federal Energy Regulatory Commission (FERC) Form 1; provided | ||||||
8 | that where one or more utilities have merged, the average | ||||||
9 | capital spend shall be determined using the aggregate of the | ||||||
10 | merged utilities' capital spend reported in FERC Form 1 for | ||||||
11 | the years 2008, 2009, and 2010. A participating utility may | ||||||
12 | add reasonable construction ramp-up and ramp-down time to the | ||||||
13 | investment periods specified in this subsection (b). For each | ||||||
14 | such investment period, the ramp-up and ramp-down time shall | ||||||
15 | not exceed a total of 6 months. | ||||||
16 | Within 60 days after filing a tariff under subsection (c) | ||||||
17 | of this Section, a participating utility shall submit to the | ||||||
18 | Commission its plan, including scope, schedule, and staffing, | ||||||
19 | for satisfying its infrastructure investment program | ||||||
20 | commitments pursuant to this subsection (b). The submitted | ||||||
21 | plan shall include a schedule and staffing plan for the next | ||||||
22 | calendar year. The plan shall also include a plan for the | ||||||
23 | creation, operation, and administration of a Smart Grid test | ||||||
24 | bed as described in subsection (c) of Section 16-108.8. The | ||||||
25 | plan need not allocate the work equally over the respective | ||||||
26 | periods, but should allocate material increments throughout |
| |||||||
| |||||||
1 | such periods commensurate with the work to be undertaken. No | ||||||
2 | later than April 1 of each subsequent year, the utility shall | ||||||
3 | submit to the Commission a report that includes any updates to | ||||||
4 | the plan, a schedule for the next calendar year, the | ||||||
5 | expenditures made for the prior calendar year and | ||||||
6 | cumulatively, and the number of full-time equivalent jobs | ||||||
7 | created for the prior calendar year and cumulatively. If the | ||||||
8 | utility is materially deficient in satisfying a schedule or | ||||||
9 | staffing plan, then the report must also include a corrective | ||||||
10 | action plan to address the deficiency. The fact that the plan, | ||||||
11 | implementation of the plan, or a schedule changes shall not | ||||||
12 | imply the imprudence or unreasonableness of the infrastructure | ||||||
13 | investment program, plan, or schedule. Further, no later than | ||||||
14 | 45 days following the last day of the first, second, and third | ||||||
15 | quarters of each year of the plan, a participating utility | ||||||
16 | shall submit to the Commission a verified quarterly report for | ||||||
17 | the prior quarter that includes (i) the total number of | ||||||
18 | full-time equivalent jobs created during the prior quarter, | ||||||
19 | (ii) the total number of employees as of the last day of the | ||||||
20 | prior quarter, (iii) the total number of full-time equivalent | ||||||
21 | hours in each job classification or job title, (iv) the total | ||||||
22 | number of incremental employees and contractors in support of | ||||||
23 | the investments undertaken pursuant to this subsection (b) for | ||||||
24 | the prior quarter, and (v) any other information that the | ||||||
25 | Commission may require by rule. | ||||||
26 | With respect to the participating utility's peak job |
| |||||||
| |||||||
1 | commitment, if, after considering the utility's corrective | ||||||
2 | action plan and compliance thereunder, the Commission enters | ||||||
3 | an order finding, after notice and hearing, that a | ||||||
4 | participating utility did not satisfy its peak job commitment | ||||||
5 | described in this subsection (b) for reasons that are | ||||||
6 | reasonably within its control, then the Commission shall also | ||||||
7 | determine, after consideration of the evidence, including, but | ||||||
8 | not limited to, evidence submitted by the Department of | ||||||
9 | Commerce and Economic Opportunity and the utility, the | ||||||
10 | deficiency in the number of full-time equivalent jobs during | ||||||
11 | the peak program year due to such failure. The Commission | ||||||
12 | shall notify the Department of any proceeding that is | ||||||
13 | initiated pursuant to this paragraph. For each full-time | ||||||
14 | equivalent job deficiency during the peak program year that | ||||||
15 | the Commission finds as set forth in this paragraph, the | ||||||
16 | participating utility shall, within 30 days after the entry of | ||||||
17 | the Commission's order, pay $6,000 to a fund for training | ||||||
18 | grants administered under Section 605-800 of the Department of | ||||||
19 | Commerce and Economic Opportunity Law, which shall not be a | ||||||
20 | recoverable expense. | ||||||
21 | With respect to the participating utility's investment | ||||||
22 | amount commitments, if, after considering the utility's | ||||||
23 | corrective action plan and compliance thereunder, the | ||||||
24 | Commission enters an order finding, after notice and hearing, | ||||||
25 | that a participating utility is not satisfying its investment | ||||||
26 | amount commitments described in this subsection (b), then the |
| |||||||
| |||||||
1 | utility shall no longer be eligible to annually update the | ||||||
2 | performance-based formula rate tariff pursuant to subsection | ||||||
3 | (d) of this Section. In such event, the then current rates | ||||||
4 | shall remain in effect until such time as new rates are set | ||||||
5 | pursuant to Article IX of this Act, subject to retroactive | ||||||
6 | adjustment, with interest, to reconcile rates charged with | ||||||
7 | actual costs. | ||||||
8 | If the Commission finds that a participating utility is no | ||||||
9 | longer eligible to update the performance-based formula rate | ||||||
10 | tariff pursuant to subsection (d) of this Section, or the | ||||||
11 | performance-based formula rate is otherwise terminated, then | ||||||
12 | the participating utility's voluntary commitments and | ||||||
13 | obligations under this subsection (b) shall immediately | ||||||
14 | terminate, except for the utility's obligation to pay an | ||||||
15 | amount already owed to the fund for training grants pursuant | ||||||
16 | to a Commission order. | ||||||
17 | In meeting the obligations of this subsection (b), to the | ||||||
18 | extent feasible and consistent with State and federal law, the | ||||||
19 | investments under the infrastructure investment program should | ||||||
20 | provide employment opportunities for all segments of the | ||||||
21 | population and workforce, including black, indigenous, and | ||||||
22 | people of color-owned and women-owned minority-owned and | ||||||
23 | female-owned business enterprises, and shall not, consistent | ||||||
24 | with State and federal law, discriminate based on race or | ||||||
25 | socioeconomic status. | ||||||
26 | (b-5) Nothing in this Section shall prohibit the |
| |||||||
| |||||||
1 | Commission from investigating the prudence and reasonableness | ||||||
2 | of the expenditures made under the infrastructure investment | ||||||
3 | program during the annual review required by subsection (d) of | ||||||
4 | this Section and shall, as part of such investigation, | ||||||
5 | determine whether the utility's actual costs under the program | ||||||
6 | are prudent and reasonable. The fact that a participating | ||||||
7 | utility invests more than the minimum amounts specified in | ||||||
8 | subsection (b) of this Section or its plan shall not imply | ||||||
9 | imprudence or unreasonableness. | ||||||
10 | If the participating utility finds that it is implementing | ||||||
11 | its plan for satisfying the infrastructure investment program | ||||||
12 | commitments described in subsection (b) of this Section at a | ||||||
13 | cost below the estimated amounts specified in subsection (b) | ||||||
14 | of this Section, then the utility may file a petition with the | ||||||
15 | Commission requesting that it be permitted to satisfy its | ||||||
16 | commitments by spending less than the estimated amounts | ||||||
17 | specified in subsection (b) of this Section. The Commission | ||||||
18 | shall, after notice and hearing, enter its order approving, or | ||||||
19 | approving as modified, or denying each such petition within | ||||||
20 | 150 days after the filing of the petition. | ||||||
21 | In no event, absent General Assembly approval, shall the | ||||||
22 | capital investment costs incurred by a participating utility | ||||||
23 | other than a combination utility in satisfying its | ||||||
24 | infrastructure investment program commitments described in | ||||||
25 | subsection (b) of this Section exceed $3,000,000,000 or, for a | ||||||
26 | participating utility that is a combination utility, |
| |||||||
| |||||||
1 | $720,000,000. If the participating utility's updated cost | ||||||
2 | estimates for satisfying its infrastructure investment program | ||||||
3 | commitments described in subsection (b) of this Section exceed | ||||||
4 | the limitation imposed by this subsection (b-5), then it shall | ||||||
5 | submit a report to the Commission that identifies the | ||||||
6 | increased costs and explains the reason or reasons for the | ||||||
7 | increased costs no later than the year in which the utility | ||||||
8 | estimates it will exceed the limitation. The Commission shall | ||||||
9 | review the report and shall, within 90 days after the | ||||||
10 | participating utility files the report, report to the General | ||||||
11 | Assembly its findings regarding the participating utility's | ||||||
12 | report. If the General Assembly does not amend the limitation | ||||||
13 | imposed by this subsection (b-5), then the utility may modify | ||||||
14 | its plan so as not to exceed the limitation imposed by this | ||||||
15 | subsection (b-5) and may propose corresponding changes to the | ||||||
16 | metrics established pursuant to subparagraphs (5) through (8) | ||||||
17 | of subsection (f) of this Section, and the Commission may | ||||||
18 | modify the metrics and incremental savings goals established | ||||||
19 | pursuant to subsection (f) of this Section accordingly. | ||||||
20 | (b-10) All participating utilities shall make | ||||||
21 | contributions for an energy low-income and support program in | ||||||
22 | accordance with this subsection. Beginning no later than 180 | ||||||
23 | days after a participating utility files a performance-based | ||||||
24 | formula rate tariff pursuant to subsection (c) of this | ||||||
25 | Section, or beginning no later than January 1, 2012 if such | ||||||
26 | utility files such performance-based formula rate tariff |
| |||||||
| |||||||
1 | within 14 days of December 30, 2011 (the effective date of | ||||||
2 | Public Act 97-646), and without obtaining any approvals from | ||||||
3 | the Commission or any other agency other than as set forth in | ||||||
4 | this Section, regardless of whether any such approval would | ||||||
5 | otherwise be required, a participating utility other than a | ||||||
6 | combination utility shall pay $10,000,000 per year for 5 years | ||||||
7 | and a participating utility that is a combination utility | ||||||
8 | shall pay $1,000,000 per year for 10 years to the energy | ||||||
9 | low-income and support program, which is intended to fund | ||||||
10 | customer assistance programs with the primary purpose being | ||||||
11 | avoidance of
imminent disconnection. Such programs may | ||||||
12 | include: | ||||||
13 | (1) a residential hardship program that may partner | ||||||
14 | with community-based
organizations, including senior | ||||||
15 | citizen organizations, and provides grants to low-income | ||||||
16 | residential customers, including low-income senior | ||||||
17 | citizens, who demonstrate a hardship; | ||||||
18 | (2) a program that provides grants and other bill | ||||||
19 | payment concessions to veterans with disabilities who | ||||||
20 | demonstrate a hardship and members of the armed services | ||||||
21 | or reserve forces of the United States or members of the | ||||||
22 | Illinois National Guard who are on active duty pursuant to | ||||||
23 | an executive order of the President of the United States, | ||||||
24 | an act of the Congress of the United States, or an order of | ||||||
25 | the Governor and who demonstrate a
hardship; | ||||||
26 | (3) a budget assistance program that provides tools |
| |||||||
| |||||||
1 | and education to low-income senior citizens to assist them | ||||||
2 | with obtaining information regarding energy usage and
| ||||||
3 | effective means of managing energy costs; | ||||||
4 | (4) a non-residential special hardship program that | ||||||
5 | provides grants to non-residential customers such as small | ||||||
6 | businesses and non-profit organizations that demonstrate a | ||||||
7 | hardship, including those providing services to senior | ||||||
8 | citizen and low-income customers; and | ||||||
9 | (5) a performance-based assistance program that | ||||||
10 | provides grants to encourage residential customers to make | ||||||
11 | on-time payments by matching a portion of the customer's | ||||||
12 | payments or providing credits towards arrearages. | ||||||
13 | The payments made by a participating utility pursuant to | ||||||
14 | this subsection (b-10) shall not be a recoverable expense. A | ||||||
15 | participating utility may elect to fund either new or existing | ||||||
16 | customer assistance programs, including, but not limited to, | ||||||
17 | those that are administered by the utility. | ||||||
18 | Programs that use funds that are provided by a | ||||||
19 | participating utility to reduce utility bills may be | ||||||
20 | implemented through tariffs that are filed with and reviewed | ||||||
21 | by the Commission. If a utility elects to file tariffs with the | ||||||
22 | Commission to implement all or a portion of the programs, | ||||||
23 | those tariffs shall, regardless of the date actually filed, be | ||||||
24 | deemed accepted and approved, and shall become effective on | ||||||
25 | December 30, 2011 (the effective date of Public Act 97-646). | ||||||
26 | The participating utilities whose customers benefit from the |
| |||||||
| |||||||
1 | funds that are disbursed as contemplated in this Section shall | ||||||
2 | file annual reports documenting the disbursement of those | ||||||
3 | funds with the Commission. The Commission has the authority to | ||||||
4 | audit disbursement of the funds to ensure they were disbursed | ||||||
5 | consistently with this Section. | ||||||
6 | If the Commission finds that a participating utility is no | ||||||
7 | longer eligible to update the performance-based formula rate | ||||||
8 | tariff pursuant to subsection (d) of this Section, or the | ||||||
9 | performance-based formula rate is otherwise terminated, then | ||||||
10 | the participating utility's voluntary commitments and | ||||||
11 | obligations under this subsection (b-10) shall immediately | ||||||
12 | terminate. | ||||||
13 | (c) A participating utility may elect to recover its | ||||||
14 | delivery services costs through a performance-based formula | ||||||
15 | rate approved by the Commission, which shall specify the cost | ||||||
16 | components that form the basis of the rate charged to | ||||||
17 | customers with sufficient specificity to operate in a | ||||||
18 | standardized manner and be updated annually with transparent | ||||||
19 | information that reflects the utility's actual costs to be | ||||||
20 | recovered during the applicable rate year, which is the period | ||||||
21 | beginning with the first billing day of January and extending | ||||||
22 | through the last billing day of the following December. In the | ||||||
23 | event the utility recovers a portion of its costs through | ||||||
24 | automatic adjustment clause tariffs on October 26, 2011 (the | ||||||
25 | effective date of Public Act 97-616), the utility may elect to | ||||||
26 | continue to recover these costs through such tariffs, but then |
| |||||||
| |||||||
1 | these costs shall not be recovered through the | ||||||
2 | performance-based formula rate. In the event the participating | ||||||
3 | utility, prior to December 30, 2011 (the effective date of | ||||||
4 | Public Act 97-646), filed electric delivery services tariffs | ||||||
5 | with the Commission pursuant to Section 9-201 of this Act that | ||||||
6 | are related to the recovery of its electric delivery services | ||||||
7 | costs that are still pending on December 30, 2011 (the | ||||||
8 | effective date of Public Act 97-646), the participating | ||||||
9 | utility shall, at the time it files its performance-based | ||||||
10 | formula rate tariff with the Commission, also file a notice of | ||||||
11 | withdrawal with the Commission to withdraw the electric | ||||||
12 | delivery services tariffs previously filed pursuant to Section | ||||||
13 | 9-201 of this Act. Upon receipt of such notice, the Commission | ||||||
14 | shall dismiss with prejudice any docket that had been | ||||||
15 | initiated to investigate the electric delivery services | ||||||
16 | tariffs filed pursuant to Section 9-201 of this Act, and such | ||||||
17 | tariffs and the record related thereto shall not be the | ||||||
18 | subject of any further hearing, investigation, or proceeding | ||||||
19 | of any kind related to rates for electric delivery services. | ||||||
20 | The performance-based formula rate shall be implemented | ||||||
21 | through a tariff filed with the Commission consistent with the | ||||||
22 | provisions of this subsection (c) that shall be applicable to | ||||||
23 | all delivery services customers. The Commission shall initiate | ||||||
24 | and conduct an investigation of the tariff in a manner | ||||||
25 | consistent with the provisions of this subsection (c) and the | ||||||
26 | provisions of Article IX of this Act to the extent they do not |
| |||||||
| |||||||
1 | conflict with this subsection (c). Except in the case where | ||||||
2 | the Commission finds, after notice and hearing, that a | ||||||
3 | participating utility is not satisfying its investment amount | ||||||
4 | commitments under subsection (b) of this Section, the | ||||||
5 | performance-based formula rate shall remain in effect at the | ||||||
6 | discretion of the utility. The performance-based formula rate | ||||||
7 | approved by the Commission shall do the following: | ||||||
8 | (1) Provide for the recovery of the utility's actual | ||||||
9 | costs of delivery services that are prudently incurred and | ||||||
10 | reasonable in amount consistent with Commission practice | ||||||
11 | and law. The sole fact that a cost differs from that | ||||||
12 | incurred in a prior calendar year or that an investment is | ||||||
13 | different from that made in a prior calendar year shall | ||||||
14 | not imply the imprudence or unreasonableness of that cost | ||||||
15 | or investment. | ||||||
16 | (2) Reflect the utility's actual year-end capital | ||||||
17 | structure for the applicable calendar year, excluding | ||||||
18 | goodwill, subject to a determination of prudence and | ||||||
19 | reasonableness consistent with Commission practice and | ||||||
20 | law. To enable the financing of the incremental capital | ||||||
21 | expenditures, including regulatory assets, for electric | ||||||
22 | utilities that serve less than 3,000,000 retail customers | ||||||
23 | but more than 500,000 retail customers in the State, a | ||||||
24 | participating electric utility's actual year-end capital | ||||||
25 | structure that includes a common equity ratio, excluding | ||||||
26 | goodwill, of up to and including 50% of the total capital |
| |||||||
| |||||||
1 | structure shall be deemed reasonable and used to set | ||||||
2 | rates. | ||||||
3 | (3) Include a cost of equity, which shall be | ||||||
4 | calculated as the sum of the following: | ||||||
5 | (A) the average for the applicable calendar year | ||||||
6 | of the monthly average yields of 30-year U.S. Treasury | ||||||
7 | bonds published by the Board of Governors of the | ||||||
8 | Federal Reserve System in its weekly H.15 Statistical | ||||||
9 | Release or successor publication; and | ||||||
10 | (B) 580 basis points. | ||||||
11 | At such time as the Board of Governors of the Federal | ||||||
12 | Reserve System ceases to include the monthly average | ||||||
13 | yields of 30-year U.S. Treasury bonds in its weekly H.15 | ||||||
14 | Statistical Release or successor publication, the monthly | ||||||
15 | average yields of the U.S. Treasury bonds then having the | ||||||
16 | longest duration published by the Board of Governors in | ||||||
17 | its weekly H.15 Statistical Release or successor | ||||||
18 | publication shall instead be used for purposes of this | ||||||
19 | paragraph (3). | ||||||
20 | (4) Permit and set forth protocols, subject to a | ||||||
21 | determination of prudence and reasonableness consistent | ||||||
22 | with Commission practice and law, for the following: | ||||||
23 | (A) recovery of incentive compensation expense | ||||||
24 | that is based on the achievement of operational | ||||||
25 | metrics, including metrics related to budget controls, | ||||||
26 | outage duration and frequency, safety, customer |
| |||||||
| |||||||
1 | service, efficiency and productivity, and | ||||||
2 | environmental compliance. Incentive compensation | ||||||
3 | expense that is based on net income or an affiliate's | ||||||
4 | earnings per share shall not be recoverable under the | ||||||
5 | performance-based formula rate; | ||||||
6 | (B) recovery of pension and other post-employment | ||||||
7 | benefits expense, provided that such costs are | ||||||
8 | supported by an actuarial study; | ||||||
9 | (C) recovery of severance costs, provided that if | ||||||
10 | the amount is over $3,700,000 for a participating | ||||||
11 | utility that is a combination utility or $10,000,000 | ||||||
12 | for a participating utility that serves more than 3 | ||||||
13 | million retail customers, then the full amount shall | ||||||
14 | be amortized consistent with subparagraph (F) of this | ||||||
15 | paragraph (4); | ||||||
16 | (D) investment return at a rate equal to the | ||||||
17 | utility's weighted average cost of long-term debt, on | ||||||
18 | the pension assets as, and in the amount, reported in | ||||||
19 | Account 186 (or in such other Account or Accounts as | ||||||
20 | such asset may subsequently be recorded) of the | ||||||
21 | utility's most recently filed FERC Form 1, net of | ||||||
22 | deferred tax benefits; | ||||||
23 | (E) recovery of the expenses related to the | ||||||
24 | Commission proceeding under this subsection (c) to | ||||||
25 | approve this performance-based formula rate and | ||||||
26 | initial rates or to subsequent proceedings related to |
| |||||||
| |||||||
1 | the formula, provided that the recovery shall be | ||||||
2 | amortized over a 3-year period; recovery of expenses | ||||||
3 | related to the annual Commission proceedings under | ||||||
4 | subsection (d) of this Section to review the inputs to | ||||||
5 | the performance-based formula rate shall be expensed | ||||||
6 | and recovered through the performance-based formula | ||||||
7 | rate; | ||||||
8 | (F) amortization over a 5-year period of the full | ||||||
9 | amount of each charge or credit that exceeds | ||||||
10 | $3,700,000 for a participating utility that is a | ||||||
11 | combination utility or $10,000,000 for a participating | ||||||
12 | utility that serves more than 3 million retail | ||||||
13 | customers in the applicable calendar year and that | ||||||
14 | relates to a workforce reduction program's severance | ||||||
15 | costs, changes in accounting rules, changes in law, | ||||||
16 | compliance with any Commission-initiated audit, or a | ||||||
17 | single storm or other similar expense, provided that | ||||||
18 | any unamortized balance shall be reflected in rate | ||||||
19 | base. For purposes of this subparagraph (F), changes | ||||||
20 | in law includes any enactment, repeal, or amendment in | ||||||
21 | a law, ordinance, rule, regulation, interpretation, | ||||||
22 | permit, license, consent, or order, including those | ||||||
23 | relating to taxes, accounting, or to environmental | ||||||
24 | matters, or in the interpretation or application | ||||||
25 | thereof by any governmental authority occurring after | ||||||
26 | October 26, 2011 (the effective date of Public Act |
| |||||||
| |||||||
1 | 97-616); | ||||||
2 | (G) recovery of existing regulatory assets over | ||||||
3 | the periods previously authorized by the Commission; | ||||||
4 | (H) historical weather normalized billing | ||||||
5 | determinants; and | ||||||
6 | (I) allocation methods for common costs. | ||||||
7 | (5) Provide that if the participating utility's earned | ||||||
8 | rate of return on common equity related to the provision | ||||||
9 | of delivery services for the prior rate year (calculated | ||||||
10 | using costs and capital structure approved by the | ||||||
11 | Commission as provided in subparagraph (2) of this | ||||||
12 | subsection (c), consistent with this Section, in | ||||||
13 | accordance with Commission rules and orders, including, | ||||||
14 | but not limited to, adjustments for goodwill, and after | ||||||
15 | any Commission-ordered disallowances and taxes) is more | ||||||
16 | than 50 basis points higher than the rate of return on | ||||||
17 | common equity calculated pursuant to paragraph (3) of this | ||||||
18 | subsection (c) (after adjusting for any penalties to the | ||||||
19 | rate of return on common equity applied pursuant to the | ||||||
20 | performance metrics provision of subsection (f) of this | ||||||
21 | Section), then the participating utility shall apply a | ||||||
22 | credit through the performance-based formula rate that | ||||||
23 | reflects an amount equal to the value of that portion of | ||||||
24 | the earned rate of return on common equity that is more | ||||||
25 | than 50 basis points higher than the rate of return on | ||||||
26 | common equity calculated pursuant to paragraph (3) of this |
| |||||||
| |||||||
1 | subsection (c) (after adjusting for any penalties to the | ||||||
2 | rate of return on common equity applied pursuant to the | ||||||
3 | performance metrics provision of subsection (f) of this | ||||||
4 | Section) for the prior rate year, adjusted for taxes. If | ||||||
5 | the participating utility's earned rate of return on | ||||||
6 | common equity related to the provision of delivery | ||||||
7 | services for the prior rate year (calculated using costs | ||||||
8 | and capital structure approved by the Commission as | ||||||
9 | provided in subparagraph (2) of this subsection (c), | ||||||
10 | consistent with this Section, in accordance with | ||||||
11 | Commission rules and orders, including, but not limited | ||||||
12 | to, adjustments for goodwill, and after any | ||||||
13 | Commission-ordered disallowances and taxes) is more than | ||||||
14 | 50 basis points less than the return on common equity | ||||||
15 | calculated pursuant to paragraph (3) of this subsection | ||||||
16 | (c) (after adjusting for any penalties to the rate of | ||||||
17 | return on common equity applied pursuant to the | ||||||
18 | performance metrics provision of subsection (f) of this | ||||||
19 | Section), then the participating utility shall apply a | ||||||
20 | charge through the performance-based formula rate that | ||||||
21 | reflects an amount equal to the value of that portion of | ||||||
22 | the earned rate of return on common equity that is more | ||||||
23 | than 50 basis points less than the rate of return on common | ||||||
24 | equity calculated pursuant to paragraph (3) of this | ||||||
25 | subsection (c) (after adjusting for any penalties to the | ||||||
26 | rate of return on common equity applied pursuant to the |
| |||||||
| |||||||
1 | performance metrics provision of subsection (f) of this | ||||||
2 | Section) for the prior rate year, adjusted for taxes. | ||||||
3 | (6) Provide for an annual reconciliation, as described | ||||||
4 | in subsection (d) of this Section, with interest, of the | ||||||
5 | revenue requirement reflected in rates for each calendar | ||||||
6 | year, beginning with the calendar year in which the | ||||||
7 | utility files its performance-based formula rate tariff | ||||||
8 | pursuant to subsection (c) of this Section, with what the | ||||||
9 | revenue requirement would have been had the actual cost | ||||||
10 | information for the applicable calendar year been | ||||||
11 | available at the filing date. | ||||||
12 | The utility shall file, together with its tariff, final | ||||||
13 | data based on its most recently filed FERC Form 1, plus | ||||||
14 | projected plant additions and correspondingly updated | ||||||
15 | depreciation reserve and expense for the calendar year in | ||||||
16 | which the tariff and data are filed, that shall populate the | ||||||
17 | performance-based formula rate and set the initial delivery | ||||||
18 | services rates under the formula. For purposes of this | ||||||
19 | Section, "FERC Form 1" means the Annual Report of Major | ||||||
20 | Electric Utilities, Licensees and Others that electric | ||||||
21 | utilities are required to file with the Federal Energy | ||||||
22 | Regulatory Commission under the Federal Power Act, Sections 3, | ||||||
23 | 4(a), 304 and 209, modified as necessary to be consistent with | ||||||
24 | 83 Ill. Admin. Code Part 415 as of May 1, 2011. Nothing in this | ||||||
25 | Section is intended to allow costs that are not otherwise | ||||||
26 | recoverable to be recoverable by virtue of inclusion in FERC |
| |||||||
| |||||||
1 | Form 1. | ||||||
2 | After the utility files its proposed performance-based | ||||||
3 | formula rate structure and protocols and initial rates, the | ||||||
4 | Commission shall initiate a docket to review the filing. The | ||||||
5 | Commission shall enter an order approving, or approving as | ||||||
6 | modified, the performance-based formula rate, including the | ||||||
7 | initial rates, as just and reasonable within 270 days after | ||||||
8 | the date on which the tariff was filed, or, if the tariff is | ||||||
9 | filed within 14 days after October 26, 2011 (the effective | ||||||
10 | date of Public Act 97-616), then by May 31, 2012. Such review | ||||||
11 | shall be based on the same evidentiary standards, including, | ||||||
12 | but not limited to, those concerning the prudence and | ||||||
13 | reasonableness of the costs incurred by the utility, the | ||||||
14 | Commission applies in a hearing to review a filing for a | ||||||
15 | general increase in rates under Article IX of this Act. The | ||||||
16 | initial rates shall take effect within 30 days after the | ||||||
17 | Commission's order approving the performance-based formula | ||||||
18 | rate tariff. | ||||||
19 | Until such time as the Commission approves a different | ||||||
20 | rate design and cost allocation pursuant to subsection (e) of | ||||||
21 | this Section, rate design and cost allocation across customer | ||||||
22 | classes shall be consistent with the Commission's most recent | ||||||
23 | order regarding the participating utility's request for a | ||||||
24 | general increase in its delivery services rates. | ||||||
25 | Subsequent changes to the performance-based formula rate | ||||||
26 | structure or protocols shall be made as set forth in Section |
| |||||||
| |||||||
1 | 9-201 of this Act, but nothing in this subsection (c) is | ||||||
2 | intended to limit the Commission's authority under Article IX | ||||||
3 | and other provisions of this Act to initiate an investigation | ||||||
4 | of a participating utility's performance-based formula rate | ||||||
5 | tariff, provided that any such changes shall be consistent | ||||||
6 | with paragraphs (1) through (6) of this subsection (c). Any | ||||||
7 | change ordered by the Commission shall be made at the same time | ||||||
8 | new rates take effect following the Commission's next order | ||||||
9 | pursuant to subsection (d) of this Section, provided that the | ||||||
10 | new rates take effect no less than 30 days after the date on | ||||||
11 | which the Commission issues an order adopting the change. | ||||||
12 | A participating utility that files a tariff pursuant to | ||||||
13 | this subsection (c) must submit a one-time $200,000 filing fee | ||||||
14 | at the time the Chief Clerk of the Commission accepts the | ||||||
15 | filing, which shall be a recoverable expense. | ||||||
16 | In the event the performance-based formula rate is | ||||||
17 | terminated, the then current rates shall remain in effect | ||||||
18 | until such time as new rates are set pursuant to Article IX of | ||||||
19 | this Act, subject to retroactive rate adjustment, with | ||||||
20 | interest, to reconcile rates charged with actual costs. At | ||||||
21 | such time that the performance-based formula rate is | ||||||
22 | terminated, the participating utility's voluntary commitments | ||||||
23 | and obligations under subsection (b) of this Section shall | ||||||
24 | immediately terminate, except for the utility's obligation to | ||||||
25 | pay an amount already owed to the fund for training grants | ||||||
26 | pursuant to a Commission order issued under subsection (b) of |
| |||||||
| |||||||
1 | this Section. | ||||||
2 | (d) Subsequent to the Commission's issuance of an order | ||||||
3 | approving the utility's performance-based formula rate | ||||||
4 | structure and protocols, and initial rates under subsection | ||||||
5 | (c) of this Section, the utility shall file, on or before May 1 | ||||||
6 | of each year, with the Chief Clerk of the Commission its | ||||||
7 | updated cost inputs to the performance-based formula rate for | ||||||
8 | the applicable rate year and the corresponding new charges. | ||||||
9 | Each such filing shall conform to the following requirements | ||||||
10 | and include the following information: | ||||||
11 | (1) The inputs to the performance-based formula rate | ||||||
12 | for the applicable rate year shall be based on final | ||||||
13 | historical data reflected in the utility's most recently | ||||||
14 | filed annual FERC Form 1 plus projected plant additions | ||||||
15 | and correspondingly updated depreciation reserve and | ||||||
16 | expense for the calendar year in which the inputs are | ||||||
17 | filed. The filing shall also include a reconciliation of | ||||||
18 | the revenue requirement that was in effect for the prior | ||||||
19 | rate year (as set by the cost inputs for the prior rate | ||||||
20 | year) with the actual revenue requirement for the prior | ||||||
21 | rate year (determined using a year-end rate base) that | ||||||
22 | uses amounts reflected in the applicable FERC Form 1 that | ||||||
23 | reports the actual costs for the prior rate year. Any | ||||||
24 | over-collection or under-collection indicated by such | ||||||
25 | reconciliation shall be reflected as a credit against, or | ||||||
26 | recovered as an additional charge to, respectively, with |
| |||||||
| |||||||
1 | interest calculated at a rate equal to the utility's | ||||||
2 | weighted average cost of capital approved by the | ||||||
3 | Commission for the prior rate year, the charges for the | ||||||
4 | applicable rate year. Provided, however, that the first | ||||||
5 | such reconciliation shall be for the calendar year in | ||||||
6 | which the utility files its performance-based formula rate | ||||||
7 | tariff pursuant to subsection (c) of this Section and | ||||||
8 | shall reconcile (i) the revenue requirement or | ||||||
9 | requirements established by the rate order or orders in | ||||||
10 | effect from time to time during such calendar year | ||||||
11 | (weighted, as applicable) with (ii) the revenue | ||||||
12 | requirement determined using a year-end rate base for that | ||||||
13 | calendar year calculated pursuant to the performance-based | ||||||
14 | formula rate using (A) actual costs for that year as | ||||||
15 | reflected in the applicable FERC Form 1, and (B) for the | ||||||
16 | first such reconciliation only, the cost of equity, which | ||||||
17 | shall be calculated as the sum of 590 basis points plus the | ||||||
18 | average for the applicable calendar year of the monthly | ||||||
19 | average yields of 30-year U.S. Treasury bonds published by | ||||||
20 | the Board of Governors of the Federal Reserve System in | ||||||
21 | its weekly H.15 Statistical Release or successor | ||||||
22 | publication. The first such reconciliation is not intended | ||||||
23 | to provide for the recovery of costs previously excluded | ||||||
24 | from rates based on a prior Commission order finding of | ||||||
25 | imprudence or unreasonableness. Each reconciliation shall | ||||||
26 | be certified by the participating utility in the same |
| |||||||
| |||||||
1 | manner that FERC Form 1 is certified. The filing shall | ||||||
2 | also include the charge or credit, if any, resulting from | ||||||
3 | the calculation required by paragraph (6) of subsection | ||||||
4 | (c) of this Section. | ||||||
5 | Notwithstanding anything that may be to the contrary, | ||||||
6 | the intent of the reconciliation is to ultimately | ||||||
7 | reconcile the revenue requirement reflected in rates for | ||||||
8 | each calendar year, beginning with the calendar year in | ||||||
9 | which the utility files its performance-based formula rate | ||||||
10 | tariff pursuant to subsection (c) of this Section, with | ||||||
11 | what the revenue requirement determined using a year-end | ||||||
12 | rate base for the applicable calendar year would have been | ||||||
13 | had the actual cost information for the applicable | ||||||
14 | calendar year been available at the filing date. | ||||||
15 | (2) The new charges shall take effect beginning on the | ||||||
16 | first billing day of the following January billing period | ||||||
17 | and remain in effect through the last billing day of the | ||||||
18 | next December billing period regardless of whether the | ||||||
19 | Commission enters upon a hearing pursuant to this | ||||||
20 | subsection (d). | ||||||
21 | (3) The filing shall include relevant and necessary | ||||||
22 | data and documentation for the applicable rate year that | ||||||
23 | is consistent with the Commission's rules applicable to a | ||||||
24 | filing for a general increase in rates or any rules | ||||||
25 | adopted by the Commission to implement this Section. | ||||||
26 | Normalization adjustments shall not be required. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Section or Act | ||||||
2 | or any rule or other requirement adopted by the | ||||||
3 | Commission, a participating utility that is a combination | ||||||
4 | utility with more than one rate zone shall not be required | ||||||
5 | to file a separate set of such data and documentation for | ||||||
6 | each rate zone and may combine such data and documentation | ||||||
7 | into a single set of schedules. | ||||||
8 | Within 45 days after the utility files its annual update | ||||||
9 | of cost inputs to the performance-based formula rate, the | ||||||
10 | Commission shall have the authority, either upon complaint or | ||||||
11 | its own initiative, but with reasonable notice, to enter upon | ||||||
12 | a hearing concerning the prudence and reasonableness of the | ||||||
13 | costs incurred by the utility to be recovered during the | ||||||
14 | applicable rate year that are reflected in the inputs to the | ||||||
15 | performance-based formula rate derived from the utility's FERC | ||||||
16 | Form 1. During the course of the hearing, each objection shall | ||||||
17 | be stated with particularity and evidence provided in support | ||||||
18 | thereof, after which the utility shall have the opportunity to | ||||||
19 | rebut the evidence. Discovery shall be allowed consistent with | ||||||
20 | the Commission's Rules of Practice, which Rules shall be | ||||||
21 | enforced by the Commission or the assigned administrative law | ||||||
22 | judge. The Commission shall apply the same evidentiary | ||||||
23 | standards, including, but not limited to, those concerning the | ||||||
24 | prudence and reasonableness of the costs incurred by the | ||||||
25 | utility, in the hearing as it would apply in a hearing to | ||||||
26 | review a filing for a general increase in rates under Article |
| |||||||
| |||||||
1 | IX of this Act. The Commission shall not, however, have the | ||||||
2 | authority in a proceeding under this subsection (d) to | ||||||
3 | consider or order any changes to the structure or protocols of | ||||||
4 | the performance-based formula rate approved pursuant to | ||||||
5 | subsection (c) of this Section. In a proceeding under this | ||||||
6 | subsection (d), the Commission shall enter its order no later | ||||||
7 | than the earlier of 240 days after the utility's filing of its | ||||||
8 | annual update of cost inputs to the performance-based formula | ||||||
9 | rate or December 31. The Commission's determinations of the | ||||||
10 | prudence and reasonableness of the costs incurred for the | ||||||
11 | applicable calendar year shall be final upon entry of the | ||||||
12 | Commission's order and shall not be subject to reopening, | ||||||
13 | reexamination, or collateral attack in any other Commission | ||||||
14 | proceeding, case, docket, order, rule or regulation, provided, | ||||||
15 | however, that nothing in this subsection (d) shall prohibit a | ||||||
16 | party from petitioning the Commission to rehear or appeal to | ||||||
17 | the courts the order pursuant to the provisions of this Act. | ||||||
18 | In the event the Commission does not, either upon | ||||||
19 | complaint or its own initiative, enter upon a hearing within | ||||||
20 | 45 days after the utility files the annual update of cost | ||||||
21 | inputs to its performance-based formula rate, then the costs | ||||||
22 | incurred for the applicable calendar year shall be deemed | ||||||
23 | prudent and reasonable, and the filed charges shall not be | ||||||
24 | subject to reopening, reexamination, or collateral attack in | ||||||
25 | any other proceeding, case, docket, order, rule, or | ||||||
26 | regulation. |
| |||||||
| |||||||
1 | A participating utility's first filing of the updated cost | ||||||
2 | inputs, and any Commission investigation of such inputs | ||||||
3 | pursuant to this subsection (d) shall proceed notwithstanding | ||||||
4 | the fact that the Commission's investigation under subsection | ||||||
5 | (c) of this Section is still pending and notwithstanding any | ||||||
6 | other law, order, rule, or Commission practice to the | ||||||
7 | contrary. | ||||||
8 | (e) Nothing in subsections (c) or (d) of this Section | ||||||
9 | shall prohibit the Commission from investigating, or a | ||||||
10 | participating utility from filing, revenue-neutral tariff | ||||||
11 | changes related to rate design of a performance-based formula | ||||||
12 | rate that has been placed into effect for the utility. | ||||||
13 | Following approval of a participating utility's | ||||||
14 | performance-based formula rate tariff pursuant to subsection | ||||||
15 | (c) of this Section, the utility shall make a filing with the | ||||||
16 | Commission within one year after the effective date of the | ||||||
17 | performance-based formula rate tariff that proposes changes to | ||||||
18 | the tariff to incorporate the findings of any final rate | ||||||
19 | design orders of the Commission applicable to the | ||||||
20 | participating utility and entered subsequent to the | ||||||
21 | Commission's approval of the tariff. The Commission shall, | ||||||
22 | after notice and hearing, enter its order approving, or | ||||||
23 | approving with modification, the proposed changes to the | ||||||
24 | performance-based formula rate tariff within 240 days after | ||||||
25 | the utility's filing. Following such approval, the utility | ||||||
26 | shall make a filing with the Commission during each subsequent |
| |||||||
| |||||||
1 | 3-year period that either proposes revenue-neutral tariff | ||||||
2 | changes or re-files the existing tariffs without change, which | ||||||
3 | shall present the Commission with an opportunity to suspend | ||||||
4 | the tariffs and consider revenue-neutral tariff changes | ||||||
5 | related to rate design. | ||||||
6 | (f) Within 30 days after the filing of a tariff pursuant to | ||||||
7 | subsection (c) of this Section, each participating utility | ||||||
8 | shall develop and file with the Commission multi-year metrics | ||||||
9 | designed to achieve, ratably (i.e., in equal segments) over a | ||||||
10 | 10-year period, improvement over baseline performance values | ||||||
11 | as follows: | ||||||
12 | (1) Twenty percent improvement in the System Average | ||||||
13 | Interruption Frequency Index, using a baseline of the | ||||||
14 | average of the data from 2001 through 2010. | ||||||
15 | (2) Fifteen percent improvement in the system Customer | ||||||
16 | Average Interruption Duration Index, using a baseline of | ||||||
17 | the average of the data from 2001 through 2010. | ||||||
18 | (3) For a participating utility other than a | ||||||
19 | combination utility, 20% improvement in the System Average | ||||||
20 | Interruption Frequency Index for its Southern Region, | ||||||
21 | using a baseline of the average of the data from 2001 | ||||||
22 | through 2010. For purposes of this paragraph (3), Southern | ||||||
23 | Region shall have the meaning set forth in the | ||||||
24 | participating utility's most recent report filed pursuant | ||||||
25 | to Section 16-125 of this Act. | ||||||
26 | (3.5) For a participating utility other than a |
| |||||||
| |||||||
1 | combination utility, 20% improvement in the System Average | ||||||
2 | Interruption Frequency Index for its Northeastern Region, | ||||||
3 | using a baseline of the average of the data from 2001 | ||||||
4 | through 2010. For purposes of this paragraph (3.5), | ||||||
5 | Northeastern Region shall have the meaning set forth in | ||||||
6 | the participating utility's most recent report filed | ||||||
7 | pursuant to Section 16-125 of this Act. | ||||||
8 | (4) Seventy-five percent improvement in the total | ||||||
9 | number of customers who exceed the service reliability | ||||||
10 | targets as set forth in subparagraphs (A) through (C) of | ||||||
11 | paragraph (4) of subsection (b) of 83 Ill. Admin. Code | ||||||
12 | Part 411.140 as of May 1, 2011, using 2010 as the baseline | ||||||
13 | year. | ||||||
14 | (5) Reduction in issuance of estimated electric bills: | ||||||
15 | 90% improvement for a participating utility other than a | ||||||
16 | combination utility, and 56% improvement for a | ||||||
17 | participating utility that is a combination utility, using | ||||||
18 | a baseline of the average number of estimated bills for | ||||||
19 | the years 2008 through 2010. | ||||||
20 | (6) Consumption on inactive meters: 90% improvement | ||||||
21 | for a participating utility other than a combination | ||||||
22 | utility, and 56% improvement for a participating utility | ||||||
23 | that is a combination utility, using a baseline of the | ||||||
24 | average unbilled kilowatthours for the years 2009 and | ||||||
25 | 2010. | ||||||
26 | (7) Unaccounted for energy: 50% improvement for a |
| |||||||
| |||||||
1 | participating utility other than a combination utility | ||||||
2 | using a baseline of the non-technical line loss | ||||||
3 | unaccounted for energy kilowatthours for the year 2009. | ||||||
4 | (8) Uncollectible expense: reduce uncollectible | ||||||
5 | expense by at least $30,000,000 for a participating | ||||||
6 | utility other than a combination utility and by at least | ||||||
7 | $3,500,000 for a participating utility that is a | ||||||
8 | combination utility, using a baseline of the average | ||||||
9 | uncollectible expense for the years 2008 through 2010. | ||||||
10 | (9) Opportunities for black, indigenous, and people of | ||||||
11 | color-owned and women-owned minority-owned and | ||||||
12 | female-owned business enterprises: design a performance | ||||||
13 | metric regarding the creation of opportunities for black, | ||||||
14 | indigenous, and people of color-owned and women-owned | ||||||
15 | minority-owned and female-owned business enterprises | ||||||
16 | consistent with State and federal law using a base | ||||||
17 | performance value of the percentage of the participating | ||||||
18 | utility's capital expenditures that were paid to black, | ||||||
19 | indigenous, and people of color-owned and women-owned | ||||||
20 | minority-owned and female-owned business enterprises in | ||||||
21 | 2010. | ||||||
22 | The definitions set forth in 83 Ill. Admin. Code Part | ||||||
23 | 411.20 as of May 1, 2011 shall be used for purposes of | ||||||
24 | calculating performance under paragraphs (1) through (3.5) of | ||||||
25 | this subsection (f), provided, however, that the participating | ||||||
26 | utility may exclude up to 9 extreme weather event days from |
| |||||||
| |||||||
1 | such calculation for each year, and provided further that the
| ||||||
2 | participating utility shall exclude 9 extreme weather event | ||||||
3 | days when calculating each year of the baseline period to the | ||||||
4 | extent that there are 9 such days in a given year of the | ||||||
5 | baseline period. For purposes of this Section, an extreme | ||||||
6 | weather event day is a 24-hour calendar day (beginning at | ||||||
7 | 12:00 a.m. and ending at 11:59 p.m.) during which any weather | ||||||
8 | event (e.g., storm, tornado) caused interruptions for 10,000 | ||||||
9 | or more of the participating utility's customers for 3 hours | ||||||
10 | or more. If there are more than 9 extreme weather event days in | ||||||
11 | a year, then the utility may choose no more than 9 extreme | ||||||
12 | weather event days to exclude, provided that the same extreme | ||||||
13 | weather event days are excluded from each of the calculations | ||||||
14 | performed under paragraphs (1) through (3.5) of this | ||||||
15 | subsection (f). | ||||||
16 | The metrics shall include incremental performance goals | ||||||
17 | for each year of the 10-year period, which shall be designed to | ||||||
18 | demonstrate that the utility is on track to achieve the | ||||||
19 | performance goal in each category at the end of the 10-year | ||||||
20 | period. The utility shall elect when the 10-year period shall | ||||||
21 | commence for the metrics set forth in subparagraphs (1) | ||||||
22 | through (4) and (9) of this subsection (f), provided that it | ||||||
23 | begins no later than 14 months following the date on which the | ||||||
24 | utility begins investing pursuant to subsection (b) of this | ||||||
25 | Section, and when the 10-year period shall commence for the | ||||||
26 | metrics set forth in subparagraphs (5) through (8) of this |
| |||||||
| |||||||
1 | subsection (f), provided that it begins no later than 14 | ||||||
2 | months following the date on which the Commission enters its | ||||||
3 | order approving the utility's Advanced Metering Infrastructure | ||||||
4 | Deployment Plan pursuant to subsection (c) of Section 16-108.6 | ||||||
5 | of this Act. | ||||||
6 | The metrics and performance goals set forth in | ||||||
7 | subparagraphs (5) through (8) of this subsection (f) are based | ||||||
8 | on the assumptions that the participating utility may fully | ||||||
9 | implement the technology described in subsection (b) of this | ||||||
10 | Section, including utilizing the full functionality of such | ||||||
11 | technology and that there is no requirement for personal | ||||||
12 | on-site notification. If the utility is unable to meet the | ||||||
13 | metrics and performance goals set forth in subparagraphs (5) | ||||||
14 | through (8) of this subsection (f) for such reasons, and the | ||||||
15 | Commission so finds after notice and hearing, then the utility | ||||||
16 | shall be excused from compliance, but only to the limited | ||||||
17 | extent achievement of the affected metrics and performance | ||||||
18 | goals was hindered by the less than full implementation. | ||||||
19 | (f-5) The financial penalties applicable to the metrics | ||||||
20 | described in subparagraphs (1) through (8) of subsection (f) | ||||||
21 | of this Section, as applicable, shall be applied through an | ||||||
22 | adjustment to the participating utility's return on equity of | ||||||
23 | no more than a total of 30 basis points in each of the first 3 | ||||||
24 | years, of no more than a total of 34 basis points
in each of | ||||||
25 | the 3 years thereafter, and of no more than a total of 38 basis | ||||||
26 | points in each
of the 4 years thereafter, as follows: |
| |||||||
| |||||||
1 | (1) With respect to each of the incremental annual | ||||||
2 | performance goals established pursuant to paragraph (1) of | ||||||
3 | subsection (f) of this Section, | ||||||
4 | (A) for each year that a participating utility | ||||||
5 | other than a combination utility does not achieve the | ||||||
6 | annual goal, the participating utility's return on | ||||||
7 | equity shall be reduced as
follows: during years 1 | ||||||
8 | through 3, by 5 basis points; during years 4 through 6, | ||||||
9 | by 6 basis points; and during years 7 through 10, by 7 | ||||||
10 | basis points; and | ||||||
11 | (B) for each year that a participating utility | ||||||
12 | that is a combination utility does not achieve the | ||||||
13 | annual goal, the participating utility's return on | ||||||
14 | equity shall be reduced as follows: during years 1 | ||||||
15 | through 3, by 10 basis points; during years 4 through | ||||||
16 | 6, by 12
basis points; and during years 7 through 10, | ||||||
17 | by 14 basis points. | ||||||
18 | (2) With respect to each of the incremental annual | ||||||
19 | performance goals established pursuant to paragraph (2) of | ||||||
20 | subsection (f) of this Section, for each year that the | ||||||
21 | participating utility does not achieve each such goal, the | ||||||
22 | participating utility's return on equity shall be reduced | ||||||
23 | as follows: during years 1 through 3, by 5 basis points; | ||||||
24 | during years 4
through 6, by 6 basis points; and during | ||||||
25 | years 7 through 10, by 7 basis points. | ||||||
26 | (3) With respect to each of the incremental annual |
| |||||||
| |||||||
1 | performance goals established
pursuant to paragraphs (3) | ||||||
2 | and (3.5) of subsection (f) of this Section, for each year | ||||||
3 | that a participating utility other than a combination | ||||||
4 | utility does not achieve both such
goals, the | ||||||
5 | participating utility's return on equity shall be reduced | ||||||
6 | as follows: during years 1 through 3, by 5 basis points; | ||||||
7 | during years 4 through 6, by 6 basis points; and during | ||||||
8 | years 7 through 10, by 7 basis points. | ||||||
9 | (4) With respect to each of the incremental annual | ||||||
10 | performance goals established
pursuant to paragraph (4) of | ||||||
11 | subsection (f) of this Section, for each year that the | ||||||
12 | participating utility does not achieve each such goal, the | ||||||
13 | participating utility's return
on equity shall be reduced | ||||||
14 | as follows: during years 1 through 3, by 5 basis points;
| ||||||
15 | during years 4 through 6, by 6 basis points; and during | ||||||
16 | years 7 through 10, by 7 basis points. | ||||||
17 | (5) With respect to each of the incremental annual | ||||||
18 | performance goals established pursuant to subparagraph (5) | ||||||
19 | of subsection (f) of this Section, for each year that the | ||||||
20 | participating utility does not achieve at least 95% of | ||||||
21 | each such goal, the participating utility's return on | ||||||
22 | equity shall be reduced by 5 basis points for each such | ||||||
23 | unachieved goal. | ||||||
24 | (6) With respect to each of the incremental annual | ||||||
25 | performance goals established pursuant to paragraphs (6), | ||||||
26 | (7), and (8) of subsection (f) of this Section, as |
| |||||||
| |||||||
1 | applicable, which together measure non-operational | ||||||
2 | customer savings and benefits
relating to the | ||||||
3 | implementation of the Advanced Metering Infrastructure | ||||||
4 | Deployment
Plan, as defined in Section 16-108.6 of this | ||||||
5 | Act, the performance under each such goal shall be | ||||||
6 | calculated in terms of the percentage of the goal | ||||||
7 | achieved. The percentage of goal achieved for each of the | ||||||
8 | goals shall be aggregated, and an average percentage value | ||||||
9 | calculated, for each year of the 10-year period. If the | ||||||
10 | utility does not achieve an average percentage value in a | ||||||
11 | given year of at least 95%, the participating utility's | ||||||
12 | return on equity shall be reduced by 5 basis points. | ||||||
13 | The financial penalties shall be applied as described in | ||||||
14 | this subsection (f-5) for the 12-month period in which the | ||||||
15 | deficiency occurred through a separate tariff mechanism, which | ||||||
16 | shall be filed by the utility together with its metrics. In the | ||||||
17 | event the formula rate tariff established pursuant to | ||||||
18 | subsection (c) of this Section terminates, the utility's | ||||||
19 | obligations under subsection (f) of this Section and this | ||||||
20 | subsection (f-5) shall also terminate, provided, however, that | ||||||
21 | the tariff mechanism established pursuant to subsection (f) of | ||||||
22 | this Section and this subsection (f-5) shall remain in effect | ||||||
23 | until any penalties due and owing at the time of such | ||||||
24 | termination are applied. | ||||||
25 | The Commission shall, after notice and hearing, enter an | ||||||
26 | order within 120 days after the metrics are filed approving, |
| |||||||
| |||||||
1 | or approving with modification, a participating utility's | ||||||
2 | tariff or mechanism to satisfy the metrics set forth in | ||||||
3 | subsection (f) of this Section. On June 1 of each subsequent | ||||||
4 | year, each participating utility shall file a report with the | ||||||
5 | Commission that includes, among other things, a description of | ||||||
6 | how the participating utility performed under each metric and | ||||||
7 | an identification of any extraordinary events that adversely | ||||||
8 | impacted the utility's performance. Whenever a participating | ||||||
9 | utility does not satisfy the metrics required pursuant to | ||||||
10 | subsection (f) of this Section, the Commission shall, after | ||||||
11 | notice and hearing, enter an order approving financial | ||||||
12 | penalties in accordance with this subsection (f-5). The | ||||||
13 | Commission-approved financial penalties shall be applied | ||||||
14 | beginning with the next rate year. Nothing in this Section | ||||||
15 | shall authorize the Commission to reduce or otherwise obviate | ||||||
16 | the imposition of financial penalties for failing to achieve | ||||||
17 | one or more of the metrics established pursuant to | ||||||
18 | subparagraph (1) through (4) of subsection (f) of this | ||||||
19 | Section. | ||||||
20 | (g) On or before July 31, 2014, each participating utility | ||||||
21 | shall file a report with the Commission that sets forth the | ||||||
22 | average annual increase in the average amount paid per | ||||||
23 | kilowatthour for residential eligible retail customers, | ||||||
24 | exclusive of the effects of energy efficiency programs, | ||||||
25 | comparing the 12-month period ending May 31, 2012; the | ||||||
26 | 12-month period ending May 31, 2013; and the 12-month period |
| |||||||
| |||||||
1 | ending May 31, 2014. For a participating utility that is a | ||||||
2 | combination utility with more than one rate zone, the weighted | ||||||
3 | average aggregate increase shall be provided. The report shall | ||||||
4 | be filed together with a statement from an independent auditor | ||||||
5 | attesting to the accuracy of the report. The cost of the | ||||||
6 | independent auditor shall be borne by the participating | ||||||
7 | utility and shall not be a recoverable expense. "The average | ||||||
8 | amount paid per kilowatthour" shall be based on the | ||||||
9 | participating utility's tariffed rates actually in effect and | ||||||
10 | shall not be calculated using any hypothetical rate or | ||||||
11 | adjustments to actual charges (other than as specified for | ||||||
12 | energy efficiency) as an input. | ||||||
13 | In the event that the average annual increase exceeds 2.5% | ||||||
14 | as calculated pursuant to this subsection (g), then Sections | ||||||
15 | 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other | ||||||
16 | than this subsection, shall be inoperative as they relate to | ||||||
17 | the utility and its service area as of the date of the report | ||||||
18 | due to be submitted pursuant to this subsection and the | ||||||
19 | utility shall no longer be eligible to annually update the | ||||||
20 | performance-based formula rate tariff pursuant to subsection | ||||||
21 | (d) of this Section. In such event, the then current rates | ||||||
22 | shall remain in effect until such time as new rates are set | ||||||
23 | pursuant to Article IX of this Act, subject to retroactive | ||||||
24 | adjustment, with interest, to reconcile rates charged with | ||||||
25 | actual costs, and the participating utility's voluntary | ||||||
26 | commitments and obligations under subsection (b) of this |
| |||||||
| |||||||
1 | Section shall immediately terminate, except for the utility's | ||||||
2 | obligation to pay an amount already owed to the fund for | ||||||
3 | training grants pursuant to a Commission order issued under | ||||||
4 | subsection (b) of this Section. | ||||||
5 | In the event that the average annual increase is 2.5% or | ||||||
6 | less as calculated pursuant to this subsection (g), then the | ||||||
7 | performance-based formula rate shall remain in effect as set | ||||||
8 | forth in this Section. | ||||||
9 | For purposes of this Section, the amount per kilowatthour | ||||||
10 | means the total amount paid for electric service expressed on | ||||||
11 | a per kilowatthour basis, and the total amount paid for | ||||||
12 | electric service includes without limitation amounts paid for | ||||||
13 | supply, transmission, distribution, surcharges, and add-on | ||||||
14 | taxes exclusive of any increases in taxes or new taxes imposed | ||||||
15 | after October 26, 2011 (the effective date of Public Act | ||||||
16 | 97-616). For purposes of this Section, "eligible retail | ||||||
17 | customers" shall have the meaning set forth in Section | ||||||
18 | 16-111.5 of this Act. | ||||||
19 | The fact that this Section becomes inoperative as set | ||||||
20 | forth in this subsection shall not be construed to mean that | ||||||
21 | the Commission may reexamine or otherwise reopen prudence or | ||||||
22 | reasonableness determinations already made. | ||||||
23 | (h) By December 31, 2017, the Commission shall prepare and | ||||||
24 | file with the General Assembly a report on the infrastructure | ||||||
25 | program and the performance-based formula rate. The report | ||||||
26 | shall include the change in the average amount per |
| |||||||
| |||||||
1 | kilowatthour paid by residential customers between June 1, | ||||||
2 | 2011 and May 31, 2017. If the change in the total average rate | ||||||
3 | paid exceeds 2.5% compounded annually, the Commission shall | ||||||
4 | include in the report an analysis that shows the portion of the | ||||||
5 | change due to the delivery services component and the portion | ||||||
6 | of the change due to the supply component of the rate. The | ||||||
7 | report shall include separate sections for each participating | ||||||
8 | utility. | ||||||
9 | Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of | ||||||
10 | this Act, other than this subsection (h), are inoperative | ||||||
11 | after December 31, 2021 2022 for every participating utility | ||||||
12 | (except for subsection (g) of Section 16-108.6, which is | ||||||
13 | inoperative after December 31, 2022) , after which time a | ||||||
14 | participating utility shall no longer be eligible to annually | ||||||
15 | update the performance-based formula rate tariff pursuant to | ||||||
16 | subsection (d) of this Section. At such time, the then current | ||||||
17 | rates shall remain in effect until such time as new rates are | ||||||
18 | set pursuant to Article IX of this Act, subject to retroactive | ||||||
19 | adjustment, with interest, to reconcile rates charged with | ||||||
20 | actual costs. | ||||||
21 | The fact that this Section becomes inoperative as set | ||||||
22 | forth in this subsection shall not be construed to mean that | ||||||
23 | the Commission may reexamine or otherwise reopen prudence or | ||||||
24 | reasonableness determinations already made. | ||||||
25 | (i) While a participating utility may use, develop, and | ||||||
26 | maintain broadband systems and the delivery of broadband |
| |||||||
| |||||||
1 | services, voice-over-internet-protocol services, | ||||||
2 | telecommunications services, and cable and video programming | ||||||
3 | services for use in providing delivery services and Smart Grid | ||||||
4 | functionality or application to its retail customers, | ||||||
5 | including, but not limited to, the installation, | ||||||
6 | implementation and maintenance of Smart Grid electric system | ||||||
7 | upgrades as defined in Section 16-108.6 of this Act, a | ||||||
8 | participating utility is prohibited from offering to its | ||||||
9 | retail customers broadband services or the delivery of | ||||||
10 | broadband services, voice-over-internet-protocol services, | ||||||
11 | telecommunications services, or cable or video programming | ||||||
12 | services, unless they are part of a service directly related | ||||||
13 | to delivery services or Smart Grid functionality or | ||||||
14 | applications as defined in Section 16-108.6 of this Act, and | ||||||
15 | from recovering the costs of such offerings from retail | ||||||
16 | customers. | ||||||
17 | (j) Nothing in this Section is intended to legislatively | ||||||
18 | overturn the opinion issued in Commonwealth Edison Co. v. Ill. | ||||||
19 | Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137, | ||||||
20 | 1-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App. | ||||||
21 | Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be | ||||||
22 | construed as creating a contract between the General Assembly | ||||||
23 | and the participating utility, and shall not establish a | ||||||
24 | property right in the participating utility.
| ||||||
25 | (k) The changes made in subsections (c) and (d) of this | ||||||
26 | Section by Public Act 98-15 are intended to be a restatement |
| |||||||
| |||||||
1 | and clarification of existing law, and intended to give | ||||||
2 | binding effect to the provisions of House Resolution 1157 | ||||||
3 | adopted by the House of Representatives of the 97th General | ||||||
4 | Assembly and Senate Resolution 821 adopted by the Senate of | ||||||
5 | the 97th General Assembly that are reflected in paragraph (3) | ||||||
6 | of this subsection. In addition, Public Act 98-15 preempts and | ||||||
7 | supersedes any final Commission orders entered in Docket Nos. | ||||||
8 | 11-0721, 12-0001, 12-0293, and 12-0321 to the extent | ||||||
9 | inconsistent with the amendatory language added to subsections | ||||||
10 | (c) and (d). | ||||||
11 | (1) No earlier than 5 business days after May 22, 2013 | ||||||
12 | (the effective date of Public Act 98-15), each | ||||||
13 | participating utility shall file any tariff changes | ||||||
14 | necessary to implement the amendatory language set forth | ||||||
15 | in subsections (c) and (d) of this Section by Public Act | ||||||
16 | 98-15 and a revised revenue requirement under the | ||||||
17 | participating utility's performance-based formula rate. | ||||||
18 | The Commission shall enter a final order approving such | ||||||
19 | tariff changes and revised revenue requirement within 21 | ||||||
20 | days after the participating utility's filing. | ||||||
21 | (2) Notwithstanding anything that may be to the | ||||||
22 | contrary, a participating utility may file a tariff to | ||||||
23 | retroactively recover its previously unrecovered actual | ||||||
24 | costs of delivery service that are no longer subject to | ||||||
25 | recovery through a reconciliation adjustment under | ||||||
26 | subsection (d) of this Section. This retroactive recovery |
| |||||||
| |||||||
1 | shall include any derivative adjustments resulting from | ||||||
2 | the changes to subsections (c) and (d) of this Section by | ||||||
3 | Public Act 98-15. Such tariff shall allow the utility to | ||||||
4 | assess, on current customer bills over a period of 12 | ||||||
5 | monthly billing periods, a charge or credit related to | ||||||
6 | those unrecovered costs with interest at the utility's | ||||||
7 | weighted average cost of capital during the period in | ||||||
8 | which those costs were unrecovered. A participating | ||||||
9 | utility may file a tariff that implements a retroactive | ||||||
10 | charge or credit as described in this paragraph for | ||||||
11 | amounts not otherwise included in the tariff filing | ||||||
12 | provided for in paragraph (1) of this subsection (k). The | ||||||
13 | Commission shall enter a final order approving such tariff | ||||||
14 | within 21 days after the participating utility's filing. | ||||||
15 | (3) The tariff changes described in paragraphs (1) and | ||||||
16 | (2) of this subsection (k) shall relate only to, and be | ||||||
17 | consistent with, the following provisions of Public Act | ||||||
18 | 98-15: paragraph (2) of subsection (c) regarding year-end | ||||||
19 | capital structure, subparagraph (D) of paragraph (4) of | ||||||
20 | subsection (c) regarding pension assets, and subsection | ||||||
21 | (d) regarding the reconciliation components related to | ||||||
22 | year-end rate base and interest calculated at a rate equal | ||||||
23 | to the utility's weighted average cost of capital. | ||||||
24 | (4) Nothing in this subsection is intended to effect a | ||||||
25 | dismissal of or otherwise affect an appeal from any final | ||||||
26 | Commission orders entered in Docket Nos. 11-0721, 12-0001, |
| |||||||
| |||||||
1 | 12-0293, and 12-0321 other than to the extent of the | ||||||
2 | amendatory language contained in subsections (c) and (d) | ||||||
3 | of this Section of Public Act 98-15. | ||||||
4 | (l) Each participating utility shall be deemed to have | ||||||
5 | been in full compliance with all requirements of subsection | ||||||
6 | (b) of this Section, subsection (c) of this Section, Section | ||||||
7 | 16-108.6 of this Act, and all Commission orders entered | ||||||
8 | pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to | ||||||
9 | and including May 22, 2013 (the effective date of Public Act | ||||||
10 | 98-15). The Commission shall not undertake any investigation | ||||||
11 | of such compliance and no penalty shall be assessed or adverse | ||||||
12 | action taken against a participating utility for noncompliance | ||||||
13 | with Commission orders associated with subsection (b) of this | ||||||
14 | Section, subsection (c) of this Section, and Section 16-108.6 | ||||||
15 | of this Act prior to such date. Each participating utility | ||||||
16 | other than a combination utility shall be permitted, without | ||||||
17 | penalty, a period of 12 months after such effective date to | ||||||
18 | take actions required to ensure its infrastructure investment | ||||||
19 | program is in compliance with subsection (b) of this Section | ||||||
20 | and with Section 16-108.6 of this Act. Provided further, the | ||||||
21 | following subparagraphs shall apply to a participating utility | ||||||
22 | other than a combination utility: | ||||||
23 | (A) if the Commission has initiated a proceeding | ||||||
24 | pursuant to subsection (e) of Section 16-108.6 of this Act | ||||||
25 | that is pending as of May 22, 2013 (the effective date of | ||||||
26 | Public Act 98-15), then the order entered in such |
| |||||||
| |||||||
1 | proceeding shall, after notice and hearing, accelerate the | ||||||
2 | commencement of the meter deployment schedule approved in | ||||||
3 | the final Commission order on rehearing entered in Docket | ||||||
4 | No. 12-0298; | ||||||
5 | (B) if the Commission has entered an order pursuant to | ||||||
6 | subsection (e) of Section 16-108.6 of this Act prior to | ||||||
7 | May 22, 2013 (the effective date of Public Act 98-15) that | ||||||
8 | does not accelerate the commencement of the meter | ||||||
9 | deployment schedule approved in the final Commission order | ||||||
10 | on rehearing entered in Docket No. 12-0298, then the | ||||||
11 | utility shall file with the Commission, within 45 days | ||||||
12 | after such effective date, a plan for accelerating the | ||||||
13 | commencement of the utility's meter deployment schedule | ||||||
14 | approved in the final Commission order on rehearing | ||||||
15 | entered in Docket No. 12-0298; the Commission shall reopen | ||||||
16 | the proceeding in which it entered its order pursuant to | ||||||
17 | subsection (e) of Section 16-108.6 of this Act and shall, | ||||||
18 | after notice and hearing, enter an amendatory order that | ||||||
19 | approves or approves as modified such accelerated plan | ||||||
20 | within 90 days after the utility's filing; or | ||||||
21 | (C) if the Commission has not initiated a proceeding | ||||||
22 | pursuant to subsection (e) of Section 16-108.6 of this Act | ||||||
23 | prior to May 22, 2013 (the effective date of Public Act | ||||||
24 | 98-15), then the utility shall file with the Commission, | ||||||
25 | within 45 days after such effective date, a plan for | ||||||
26 | accelerating the commencement of the utility's meter |
| |||||||
| |||||||
1 | deployment schedule approved in the final Commission order | ||||||
2 | on rehearing entered in Docket No. 12-0298 and the | ||||||
3 | Commission shall, after notice and hearing, approve or | ||||||
4 | approve as modified such plan within 90 days after the | ||||||
5 | utility's filing. | ||||||
6 | Any schedule for meter deployment approved by the | ||||||
7 | Commission pursuant to this subsection (l) shall take into | ||||||
8 | consideration procurement times for meters and other equipment | ||||||
9 | and operational issues. Nothing in Public Act 98-15 shall | ||||||
10 | shorten or extend the end dates for the 5-year or 10-year | ||||||
11 | periods set forth in subsection (b) of this Section or Section | ||||||
12 | 16-108.6 of this Act. Nothing in this subsection is intended | ||||||
13 | to address whether a participating utility has, or has not, | ||||||
14 | satisfied any or all of the metrics and performance goals | ||||||
15 | established pursuant to subsection (f) of this Section. | ||||||
16 | (m) The provisions of Public Act 98-15 are severable under | ||||||
17 | Section 1.31 of the Statute on Statutes. | ||||||
18 | (Source: P.A. 99-143, eff. 7-27-15; 99-642, eff. 7-28-16; | ||||||
19 | 99-906, eff. 6-1-17; 100-840, eff. 8-13-18.) | ||||||
20 | (220 ILCS 5/16-108.9 new) | ||||||
21 | Sec. 16-108.9. Clean Energy Empowerment Zone pilot | ||||||
22 | projects. | ||||||
23 | (a) The General Assembly finds that it is important to | ||||||
24 | support the rapid transition in the energy sector to put | ||||||
25 | Illinois on a path to 100% renewable energy. This will require |
| |||||||
| |||||||
1 | leveraging new technologies and solutions to support grid | ||||||
2 | reliability to address issues such as the shift from large, | ||||||
3 | centralized, fossil generation to wind, solar, and distributed | ||||||
4 | energy resources. To that end, the General Assembly sees the | ||||||
5 | need for developing pilot projects in Clean Energy Empowerment | ||||||
6 | Zones that enhance reliability while facilitating the | ||||||
7 | transition toward clean energy. | ||||||
8 | (b) An electric utility serving more than 100,000 retail | ||||||
9 | customers may propose one or more Clean Energy Empowerment | ||||||
10 | Zone pilot projects to the Illinois Commerce Commission to | ||||||
11 | conduct a competitive procurement for independently owned | ||||||
12 | energy storage systems to be located in Clean Energy | ||||||
13 | Empowerment Zones. The Commission shall evaluate the projects | ||||||
14 | based on their ability to address present and future | ||||||
15 | reliability needs identified by the Midcontinent Independent | ||||||
16 | System Operator, PJM Interconnection, electric utilities, or | ||||||
17 | independent analysts. In addition to supporting reliability, a | ||||||
18 | qualifying project must support the transition toward or | ||||||
19 | development of clean energy. | ||||||
20 | (c) The Clean Energy Empowerment Zones described in this | ||||||
21 | Section shall be the same as defined by the Department of | ||||||
22 | Commerce and Economic Opportunity in the Energy Community | ||||||
23 | Reinvestment Act. | ||||||
24 | (d) The Clean Energy Empowerment Zone pilot projects shall | ||||||
25 | closely coordinate with actual and expected development of new | ||||||
26 | wind projects and new solar projects as described in Section |
| |||||||
| |||||||
1 | 1-75 of the Illinois Power Agency Act, electric vehicle | ||||||
2 | adoption, and Community Energy, Climate, and Jobs Plans as | ||||||
3 | defined in the Community Energy, Climate, and Jobs Planning | ||||||
4 | Act. | ||||||
5 | (e) Upon approval of a Clean Energy Empowerment Zone pilot | ||||||
6 | project by the Illinois Commerce Commission, an electric | ||||||
7 | utility is authorized to enter into a distribution services | ||||||
8 | contract with new energy storage system projects in accordance | ||||||
9 | with the approved project. Nothing in this Section or in the | ||||||
10 | distribution services contract shall preclude the energy | ||||||
11 | storage project from providing additional wholesale market | ||||||
12 | services. | ||||||
13 | (f) An electric utility that elects to undertake the | ||||||
14 | investment described in subsection (b) of this Section may, at | ||||||
15 | its election, recover the costs of such investment through an | ||||||
16 | automatic adjustment clause tariff or through a delivery | ||||||
17 | services charge regardless of how the costs are classified on | ||||||
18 | the utility's books and records of account. | ||||||
19 | (g) To the extent feasible and consistent with State and | ||||||
20 | federal law, the investments made pursuant to this Section | ||||||
21 | shall provide employment opportunities for former workers in | ||||||
22 | fossil fuel industries and participants in the Clean Jobs | ||||||
23 | Workforce Hubs as defined in the Clean Jobs, Workforce and | ||||||
24 | Contractor Equity Act. | ||||||
25 | (h) Nothing in this Section is intended to limit the | ||||||
26 | ability of any other entity to develop, construct, or install |
| |||||||
| |||||||
1 | an energy storage system. In addition, nothing in this Section | ||||||
2 | is intended to limit or alter otherwise applicable | ||||||
3 | interconnection requirements. | ||||||
4 | (220 ILCS 5/16-108.18 new) | ||||||
5 | Sec. 16-108.18. Performance-based ratemaking. | ||||||
6 | (a) Findings and Purpose. The General Assembly finds that | ||||||
7 | improving the alignment of utility customer and company | ||||||
8 | interests is critical to ensuring that Illinois residents and | ||||||
9 | businesses have the opportunity to optimize existing utility | ||||||
10 | infrastructure and do not suffer economic and environmental | ||||||
11 | harm from the State's energy systems. This realignment is | ||||||
12 | critical to ensure the ongoing viability of Illinois electric | ||||||
13 | utilities, as they face an increasing need to rapidly adopt | ||||||
14 | business models and strategies that enable new innovations and | ||||||
15 | customer choices. Furthermore, the General Assembly finds that | ||||||
16 | this realignment has entered a period of extraordinary | ||||||
17 | urgency, given the expected rapid growth of distributed energy | ||||||
18 | resources, electric vehicles, and other new technologies that | ||||||
19 | substantially change the makeup of the grid. Moreover, urgency | ||||||
20 | of action to address increasing threats from climate change | ||||||
21 | and to assist communities that have borne a disproportionate | ||||||
22 | impact from air pollution, greenhouse gas emissions, and | ||||||
23 | energy burdens requires immediate and significant change to | ||||||
24 | the business model under which utilities in Illinois have | ||||||
25 | functioned. Providing incentive for necessary changes through |
| |||||||
| |||||||
1 | a new holistic, performance-based structure for ratemaking | ||||||
2 | will enable alignment of utility, customer, community and | ||||||
3 | environmental goals. In particular, the General Assembly finds | ||||||
4 | that: | ||||||
5 | (1) The traditional regulatory model rewards utilities | ||||||
6 | for increasing capital expenditures by basing allowed | ||||||
7 | revenues on the value of the rate base, irrespective of | ||||||
8 | utility performance. This compact does not align the | ||||||
9 | interests of customers and utilities because it may result | ||||||
10 | in a bias toward expending utility capital in ways that | ||||||
11 | may displace more efficient or cost-effective options, | ||||||
12 | such as distributed energy resources owned by customers or | ||||||
13 | projects implemented by independent third parties that can | ||||||
14 | meet grid needs. | ||||||
15 | (2) Traditional regulation also rewards utilities for | ||||||
16 | selling higher volumes of electricity through the | ||||||
17 | throughput incentive. This model unnecessarily increases | ||||||
18 | customer costs and pollution and is therefore in neither | ||||||
19 | ratepayers' nor the State's interest. | ||||||
20 | (3) Though Illinois has taken some measures to move | ||||||
21 | utilities to performance-based ratemaking through the | ||||||
22 | establishment of performance incentives and a | ||||||
23 | performance-based formula rate under the Energy | ||||||
24 | Infrastructure Modernization Act, these measures have not | ||||||
25 | been transformative in urgently moving electric utilities | ||||||
26 | toward the State's ambitious energy policy goals: |
| |||||||
| |||||||
1 | protecting a healthy environment and climate, improving | ||||||
2 | public health, and creating quality jobs and economic | ||||||
3 | opportunities including wealth building, especially in | ||||||
4 | economically disadvantaged communities and BIPOC | ||||||
5 | communities. Rather, they have resulted in excess utility | ||||||
6 | profits without meaningful improvements in customer | ||||||
7 | experience, rates, or equity. | ||||||
8 | (4) The General Assembly therefore directs the | ||||||
9 | Illinois Commerce Commission to complete a transition to a | ||||||
10 | comprehensive performance-based regulation framework for | ||||||
11 | electric utilities with more than 500,000 customers. The | ||||||
12 | breadth of this framework should remake existing utility | ||||||
13 | regulations to position Illinois electric utilities to | ||||||
14 | effectively and efficiently achieve current and | ||||||
15 | anticipated future energy needs of this State. | ||||||
16 | (5) It is the intent of the General Assembly that over | ||||||
17 | time the comprehensive performance-based regulation | ||||||
18 | framework will progressively reduce the direct link | ||||||
19 | between utility revenues and traditional investment levels | ||||||
20 | and increasingly tie revenues to performance. | ||||||
21 | (b) Definitions. | ||||||
22 | As used in this Section: | ||||||
23 | "Commission" means the Illinois Commerce Commission. | ||||||
24 | "Demand response" means measures that decrease peak | ||||||
25 | electricity demand or shift demand from peak to off-peak | ||||||
26 | periods. |
| |||||||
| |||||||
1 | "Distributed energy resources" or "DER" means a wide range | ||||||
2 | of technologies that are located on the customer side of the | ||||||
3 | customer's electric meter and can provide value to the | ||||||
4 | distribution system, including, but not limited to, | ||||||
5 | distributed generation, energy storage, electric vehicles, and | ||||||
6 | demand response technologies. | ||||||
7 | "Economically disadvantaged communities" means areas of | ||||||
8 | one or more census tracts where average household income does | ||||||
9 | not exceed 80% of area median income. | ||||||
10 | "Environmental justice communities" means the definition | ||||||
11 | of that term based on existing methodologies and findings, | ||||||
12 | used and as may be updated by the Illinois Power Agency and its | ||||||
13 | Program Administrator in the Illinois Solar for All Program. | ||||||
14 | "Performance-based regulation or ratemaking" or "PBR" | ||||||
15 | means a regulatory approach that aligns utility interests with | ||||||
16 | customer and societal interests through regulatory mechanisms | ||||||
17 | that motivate utilities to improve operations, increase | ||||||
18 | program effectiveness, better manage business expenses, and | ||||||
19 | align system performance with identified societal or policy | ||||||
20 | goals. | ||||||
21 | (c) Objectives. The comprehensive PBR framework should be | ||||||
22 | designed to accomplish the following objectives: | ||||||
23 | (1) incentivize utilities to pursue cost-effective | ||||||
24 | solutions to meet customer needs; | ||||||
25 | (2) decarbonize utility systems at a pace that meets | ||||||
26 | or exceeds state climate goals; |
| |||||||
| |||||||
1 | (3) remove utility incentives to grow energy sales, | ||||||
2 | except where sales growth is determined to be aligned with | ||||||
3 | state policy goals; | ||||||
4 | (4) reduce the link between utility expenditures and | ||||||
5 | collected revenue and eliminate embedded utility | ||||||
6 | preferences for one type of expenditure over another for | ||||||
7 | the same service; | ||||||
8 | (5) incentivize utilities to undertake the most | ||||||
9 | effective expenditures for assets or services, whether | ||||||
10 | self-supplied by the utility or through third-party | ||||||
11 | contracting, to deliver high-quality service to customers | ||||||
12 | at least cost; | ||||||
13 | (6) maintain the affordability, safety, and | ||||||
14 | reliability of electric power supply; and | ||||||
15 | (7) incentivize utilities to pursue equitable access | ||||||
16 | to high-quality customer service, affordable rates, DER | ||||||
17 | interconnection, and the benefits of grid modernization | ||||||
18 | and clean energy for ratepayers in environmental justice | ||||||
19 | and economically disadvantaged communities. Additionally, | ||||||
20 | motivate utilities to sustain a diverse workforce, | ||||||
21 | supplier procurement base and, for relevant programs, | ||||||
22 | approved vendor pools. | ||||||
23 | (d) The comprehensive PBR framework should comprise a set | ||||||
24 | of PBR mechanisms that collectively accomplish the objectives | ||||||
25 | set forth in subsection (c). Those mechanisms may include, but | ||||||
26 | are not limited to: |
| |||||||
| |||||||
1 | (1) multiyear rate plans and associated features, as | ||||||
2 | set forth in subsection (e) of this Section; | ||||||
3 | (2) revenue decoupling, as set forth in paragraph (11) | ||||||
4 | of subsection (e) of this Section; | ||||||
5 | (3) shared savings mechanisms; | ||||||
6 | (4) performance incentive mechanisms, as set forth in | ||||||
7 | subsection (f) of this Section; | ||||||
8 | (5) changes to the accounting treatment of capital and | ||||||
9 | operating expenditures; and | ||||||
10 | (6) changes to rate design, as set forth in Section | ||||||
11 | paragraph 10 of subsection (e) of this Section. | ||||||
12 | (e) Multi-year Rate Plan. | ||||||
13 | (1) If an electric utility has a performance-based | ||||||
14 | formula rate in effect under Section 16-108.5 as of | ||||||
15 | December 31, 2020, then the utility shall file a petition | ||||||
16 | proposing tariffs implementing a four-year Multi-year Rate | ||||||
17 | Plan as provided in this Section no later than July 1, 2022 | ||||||
18 | for delivery service rates to be effective from June 1, | ||||||
19 | 2023 through May 31, 2027. The Commission shall issue an | ||||||
20 | order approving, approving as modified, or rejecting the | ||||||
21 | utility's plan no later than June 1, 2023. If the | ||||||
22 | Commission rejects the utility's plan, the deadline to | ||||||
23 | approve the plan or approve it as modified shall be | ||||||
24 | extended to 4 months from the date of the rejection. The | ||||||
25 | term "Multi-year Rate Plan" refers to a plan establishing | ||||||
26 | the rates the utility may charge for each delivery year of |
| |||||||
| |||||||
1 | the four-year period to be covered by the plan. The net | ||||||
2 | revenue requirement reflected in rates in effect on | ||||||
3 | December 31, 2021 for the electric utility shall remain in | ||||||
4 | effect until new rates are approved under the Multi-year | ||||||
5 | Rate Plan, and no additional annual reconciliation under | ||||||
6 | Section 16-108.5 shall be made. | ||||||
7 | (2) A utility proposing a Multi-year Rate Plan shall | ||||||
8 | provide a description of the utility's major planned | ||||||
9 | investments, which shall include at a minimum all | ||||||
10 | investments of $1 million or greater over the plan period. | ||||||
11 | Planned investments must conform to the goals established | ||||||
12 | in the Multi-year Integrated Grid Plan described in | ||||||
13 | section 16-105.17 of this Act. | ||||||
14 | (3) The Multi-year Rate Plan shall be implemented | ||||||
15 | through a tariff filed with the Commission consistent with | ||||||
16 | the provisions of this paragraph (3) that shall apply to | ||||||
17 | all delivery service customers. The Commission shall | ||||||
18 | initiate and conduct an investigation of the tariff in a | ||||||
19 | manner consistent with the provisions of this paragraph | ||||||
20 | (3) and the provisions of Article IX of this Act to the | ||||||
21 | extent they do not conflict with this paragraph (3). The | ||||||
22 | Multi-year Rate Plan approved by the Commission shall do | ||||||
23 | the following: | ||||||
24 | (A) Provide for the recovery of the utility's | ||||||
25 | forecasted rate base, based on a budget forecast or a | ||||||
26 | fixed escalation rate, individually or in combination. |
| |||||||
| |||||||
1 | The forecasted rate base must include the utility's | ||||||
2 | planned capital investments and investment-related | ||||||
3 | costs, including income tax impacts, depreciation, and | ||||||
4 | property taxes prudently incurred and reasonable in | ||||||
5 | amount consistent with Commission practice and law. | ||||||
6 | The budgeting process must be iterative, be rigorous, | ||||||
7 | and lead to forecasts that reasonably represent the | ||||||
8 | utility's investments during the forecasted period. | ||||||
9 | (B) For the first Multi-year Rate Plan, reflect | ||||||
10 | year-end capital structure that includes a common | ||||||
11 | equity ratio, excluding goodwill, of no more than 50% | ||||||
12 | of the total capital structure shall be deemed | ||||||
13 | reasonable and prudent and used to set rates. | ||||||
14 | (C) For the first Multi-year Rate Plan, include a | ||||||
15 | cost of equity, which shall be calculated as the sum of | ||||||
16 | the following: | ||||||
17 | (i) the average for the applicable calendar | ||||||
18 | year of the monthly average yields of 30-year U.S. | ||||||
19 | Treasury bonds published by the Board of Governors | ||||||
20 | of the Federal Reserve System in its weekly H.15 | ||||||
21 | Statistical Release or successor publication; and | ||||||
22 | (ii) 530 basis points. | ||||||
23 | At such time as the Board of Governors of the | ||||||
24 | Federal Reserve System ceases to include the monthly | ||||||
25 | average yields of 30-year U.S. Treasury bonds in its | ||||||
26 | weekly H.15 Statistical Release or successor |
| |||||||
| |||||||
1 | publication, the monthly average yields of the U.S. | ||||||
2 | Treasury bonds then having the longest duration | ||||||
3 | published by the Board of Governors in its weekly H.15 | ||||||
4 | Statistical Release or successor publication shall | ||||||
5 | instead be used for purposes of this subparagraph (C). | ||||||
6 | (D) For subsequent Multi-year Rate Plans, the cost | ||||||
7 | of equity and capital structure shall be established | ||||||
8 | by the Commission and shall be set to reflect a | ||||||
9 | risk-adjusted return compared to the prevailing cost | ||||||
10 | of capital and comparable investments in the economy, | ||||||
11 | including U.S. Treasury rates, upon which additional | ||||||
12 | earning opportunities and penalties can be provided to | ||||||
13 | reflect utility performance against identified | ||||||
14 | outcomes. | ||||||
15 | (E) Recovery of operations and maintenance | ||||||
16 | expenses, based on projected costs, an | ||||||
17 | electricity-related price index or other formula. | ||||||
18 | (F) Amortize the amount of unprotected | ||||||
19 | property-related excess accumulated deferred income | ||||||
20 | taxes in rates as of December 31, 2022 over a period of | ||||||
21 | 5 years. | ||||||
22 | (G) Disallow recovery of charitable contributions. | ||||||
23 | (H) Allow recovery of pension and other | ||||||
24 | post-employment benefits expense only if such costs | ||||||
25 | are demonstrated to be funded by ratepayers. | ||||||
26 | (I) Allow recovery of incentive compensation |
| |||||||
| |||||||
1 | expense that is based on the achievement of | ||||||
2 | operational metrics, including metrics related to | ||||||
3 | budget controls, outage duration and frequency, | ||||||
4 | safety, customer service, efficiency and productivity, | ||||||
5 | environmental compliance and attainment of | ||||||
6 | environmental goals, and other goals and metrics | ||||||
7 | approved by the Commission. Incentive compensation | ||||||
8 | expense that is based on net income or an affiliate's | ||||||
9 | earnings per share shall not be recoverable; | ||||||
10 | (4) Rates charged under the Multi-Year Rate Plan must | ||||||
11 | be based only upon the utility's reasonable and prudent | ||||||
12 | costs of service over the term of the plan, as determined | ||||||
13 | by the Commission, provided that the costs are not being | ||||||
14 | recovered elsewhere in rates. Rate adjustments authorized | ||||||
15 | by the Commission may continue outside of a plan | ||||||
16 | authorized under this Section to the extent such costs are | ||||||
17 | not recovered elsewhere in rates. The burden of proof | ||||||
18 | shall be on the electric utility to establish the prudence | ||||||
19 | of investments and expenditures and to establish that such | ||||||
20 | investments are reasonably necessary to meet the | ||||||
21 | requirements of the most recently approved Multi-Year | ||||||
22 | Integrated Grid Plan described in Section 16-105.17 of | ||||||
23 | this Act. The sole fact that a cost differs from that | ||||||
24 | incurred in a prior period or that an investment is | ||||||
25 | different from that described the Multi-year Integrated | ||||||
26 | Grid Plan shall not imply the imprudence or |
| |||||||
| |||||||
1 | unreasonableness of that cost or investment. The sole fact | ||||||
2 | that an investment is the same or similar to that | ||||||
3 | described in the Multi-Year Integrated Grid Plan shall not | ||||||
4 | imply prudence and reasonableness. | ||||||
5 | (5) To facilitate public transparency, all materials, | ||||||
6 | data, testimony, schedules, etc. shall be provided to the | ||||||
7 | Commission in an editable, machine-readable electronic | ||||||
8 | format including .doc, .docx, .xls, .xlsx, and similar, | ||||||
9 | but not including .pdf or .exif. Should utilities | ||||||
10 | designate any materials "confidential," they shall have an | ||||||
11 | affirmative duty to explain why the particular information | ||||||
12 | is marked confidential. In determining prudence and | ||||||
13 | reasonableness of rates, the Commission shall also | ||||||
14 | consider each public comment filed in the docket. | ||||||
15 | (6) The Commission may, by order, establish terms, | ||||||
16 | conditions, and procedures for a Multi-year Rate Plan | ||||||
17 | necessary to implement this Section and ensure that rates | ||||||
18 | remain just and reasonable during the course of the plan, | ||||||
19 | including terms and procedures for rate adjustment. At any | ||||||
20 | time prior to conclusion of a Multi-year Rate Plan, the | ||||||
21 | Commission, upon its own motion or upon petition of any | ||||||
22 | party, may initiate a proceeding to examine the | ||||||
23 | reasonableness of the utility's rates under the plan, and | ||||||
24 | adjust rates as necessary. | ||||||
25 | (7) Capital True-up. The utility shall propose an | ||||||
26 | annual capital true-up mechanism that provides a refund to |
| |||||||
| |||||||
1 | customers if the utility's actual capital-related revenue | ||||||
2 | requirement is less in total in any of the Multi-Year Rate | ||||||
3 | Plan delivery years than the Commission authorizes for | ||||||
4 | that year. Conversely, if the Company's actual | ||||||
5 | capital-related revenue requirement is more in total in | ||||||
6 | the Multi-year Rate Plan delivery year than the Commission | ||||||
7 | authorizes for that year, the Company cannot surcharge | ||||||
8 | customers to collect any under recovery. | ||||||
9 | (8) A participating utility that files a tariff | ||||||
10 | pursuant to paragraph (3) of this subsection (e) must | ||||||
11 | submit a one-time $200,000 filing fee at the time the | ||||||
12 | Chief Clerk of the Commission accepts the filing, which | ||||||
13 | shall be a recoverable expense. | ||||||
14 | (9) Subsequent Multi-Year Rate Plans. An electric | ||||||
15 | utility operating under the Multi-Year Rate Plan shall | ||||||
16 | file a new Multi-Year Rate Plan at least 210 days prior to | ||||||
17 | the end of the initial Multi-Year Rate Plan, and every 4 | ||||||
18 | years thereafter, with a rate-effective date of the | ||||||
19 | proposed tariffs such that, after the Commission | ||||||
20 | suspension period, the rates would take effect immediately | ||||||
21 | at the close of the final year of the initial Multi-Year | ||||||
22 | Rate Plan. In subsequent Multi-Year Rate Plans, as in the | ||||||
23 | initial plans, utilities and stakeholders may propose | ||||||
24 | additional metrics that achieve the outcomes described in | ||||||
25 | paragraph (2) of subsection (f) of this Section. | ||||||
26 | (10) Rate Design. The Commission shall approve tariffs |
| |||||||
| |||||||
1 | as part of each Multi-Year Rate Plan establishing rate | ||||||
2 | design for all delivery service customers. These shall | ||||||
3 | expand the rate options available to customers, including, | ||||||
4 | but not limited to, an affordability rate for low-income | ||||||
5 | residential customers, a time-of-use rate, an electric | ||||||
6 | vehicle rate, and a peak time savings rate. | ||||||
7 | (11) Decoupling. The Commission may, by order, approve | ||||||
8 | a tariff filed by an electric utility that provides for | ||||||
9 | decoupling of sales and revenues to mitigate the impact on | ||||||
10 | public utilities of the energy-savings goals and to reduce | ||||||
11 | a utility's disincentive to promote energy efficiency | ||||||
12 | under Section 16-111.5B of this Act without adversely | ||||||
13 | affecting utility ratepayers. In its consideration of a | ||||||
14 | proposed decoupling tariff, the Commission shall consider | ||||||
15 | a mechanism that triggers the periodic adjustment to rates | ||||||
16 | when the changes in revenue would result in a change | ||||||
17 | within a certain percentage, an earnings band to share | ||||||
18 | revenues that exceed the authorized return, or other | ||||||
19 | mechanisms that reduce the size and frequency of rate | ||||||
20 | adjustments. | ||||||
21 | (f) Performance Incentive Mechanisms. | ||||||
22 | (1) The Commission shall establish performance | ||||||
23 | incentive mechanisms in order to better tie utility | ||||||
24 | revenues to performance and customer benefits, accelerate | ||||||
25 | progress on Illinois energy and other goals, and hold | ||||||
26 | utilities publicly accountable. The Commission shall |
| |||||||
| |||||||
1 | develop metrics, which are observable and measurable | ||||||
2 | indicators of system or utility performance, in order to | ||||||
3 | create performance incentive mechanisms. Specifically, the | ||||||
4 | Commission shall establish: | ||||||
5 | (A) Tracking metrics, which will be used for | ||||||
6 | measuring and reporting utility performance. | ||||||
7 | (B) Performance metrics, which will be used for | ||||||
8 | financially incentivizing improved utility | ||||||
9 | performance. | ||||||
10 | (2) Outcomes of Metrics. The Commission shall approve | ||||||
11 | tracking and performance metrics that encourage | ||||||
12 | cost-effective, equitable utility achievement of the | ||||||
13 | following outcomes: | ||||||
14 | (A) Affordability. Achieve affordable customer | ||||||
15 | energy costs and utility bills, with particular | ||||||
16 | emphasis on keeping lower-income households' bills | ||||||
17 | within a manageable portion of their income. | ||||||
18 | (B) Pollution Reduction. Minimize emissions of | ||||||
19 | greenhouse gases and pollutants that harm human | ||||||
20 | health, particularly in environmental justice and | ||||||
21 | economically disadvantaged communities, through both | ||||||
22 | (A) minimizing emissions per kilowatt-hour of | ||||||
23 | electricity consumed; and (B) minimizing total | ||||||
24 | emissions, including by accelerating electrification | ||||||
25 | of transportation, buildings and industries where such | ||||||
26 | electrification results in net reductions, across all |
| |||||||
| |||||||
1 | fuels and over the life of electrification measures, | ||||||
2 | of greenhouse gases and other pollutants. | ||||||
3 | (C) Flexibility. Enhance the grid's flexibility to | ||||||
4 | adapt to increased deployment of nondispatchable | ||||||
5 | resources; improve the ability and performance of the | ||||||
6 | grid on load balancing; and address uncertainty around | ||||||
7 | future customer needs, future environmental concerns, | ||||||
8 | emerging technology, changes in costs of technology | ||||||
9 | and service, and other factors. | ||||||
10 | (D) Reliability. Meet high standards of overall | ||||||
11 | and locational reliability. | ||||||
12 | (E) Customer Experience. Deliver customer service | ||||||
13 | quality, customer engagement, and customer access to | ||||||
14 | utility system information. | ||||||
15 | (F) Equity. Maximize and prioritize the allocation | ||||||
16 | of grid planning benefits to environmental justice and | ||||||
17 | economically disadvantaged customers and communities. | ||||||
18 | Sustain a diverse workforce, supplier procurement base | ||||||
19 | and, for relevant programs, approved vendor pools. | ||||||
20 | (G) Cost-effectiveness. Ensure rates reflect cost | ||||||
21 | savings attributable to grid modernization and | ||||||
22 | integration of distributed energy resources that allow | ||||||
23 | the utility to defer or forgo traditional grid | ||||||
24 | investments that would otherwise be required. | ||||||
25 | It is the intent of the General Assembly that these | ||||||
26 | outcomes shall guide the development of metrics even as |
| |||||||
| |||||||
1 | the grid, along with its associated technologies and | ||||||
2 | policies, evolves. It is also the intent of the General | ||||||
3 | Assembly that the limitation of total costs to customers | ||||||
4 | and the promotion of ethical and transparent practices by | ||||||
5 | utilities, as well as the role that flexible load and | ||||||
6 | distributed energy resources can play in advancing the | ||||||
7 | outcomes, be considered in the establishment of metrics. | ||||||
8 | (3) Metrics Requirements. | ||||||
9 | (A) Tracking Metrics. Tracking metrics shall | ||||||
10 | entail a description of the metric, a calculation | ||||||
11 | method, and a data collection method. The Commission | ||||||
12 | shall approve tracking metrics that measure | ||||||
13 | achievement of at least one of the outcomes set forth | ||||||
14 | in paragraph (2) and are supported by sufficient | ||||||
15 | stakeholder input. Tracking metrics should measure | ||||||
16 | outcomes and actual results and projections where | ||||||
17 | possible. | ||||||
18 | (B) Performance Metrics. Performance metrics shall | ||||||
19 | entail a description of the metric, a calculation | ||||||
20 | method, a data collection method, annual binding | ||||||
21 | performance targets, and monetary incentives (rewards | ||||||
22 | or penalties or both, depending on the metric) for | ||||||
23 | utilities' achievement of or failure to achieve their | ||||||
24 | performance targets. The Commission shall approve | ||||||
25 | performance metrics that (i) measure achievement of | ||||||
26 | the outcomes set forth in paragraph (2); (ii) are |
| |||||||
| |||||||
1 | supported by sufficient stakeholder input; (iii) have | ||||||
2 | one year of tracking data collected in a consistent | ||||||
3 | manner and verifiable by an independent evaluator in
| ||||||
4 | order to establish a baseline; and (iv) require an | ||||||
5 | incentive (reward or penalty or both) to create
| ||||||
6 | improved utility performance. While a single | ||||||
7 | performance metric may measure achievement of more | ||||||
8 | than one of the outcomes set forth in paragraph (2), | ||||||
9 | and such metrics should be valued, the Commission | ||||||
10 | shall not approve multiple performance metrics that | ||||||
11 | measure achievement identical or near-identical | ||||||
12 | results. Performance metrics should measure outcomes | ||||||
13 | and actual, rather than projected, results where | ||||||
14 | possible. | ||||||
15 | (C) Performance targets. For metrics where | ||||||
16 | progressive improvement is desirable, performance | ||||||
17 | targets shall increase annually and shall require | ||||||
18 | utilities to perform beyond "business as usual," as | ||||||
19 | determined by baseline tracking data and | ||||||
20 | high-confidence projections. Increases to a target | ||||||
21 | shall be considered in light of other metrics, | ||||||
22 | cost-effectiveness, and other factors the Commission | ||||||
23 | deems appropriate. | ||||||
24 | (D) Performance incentives. The Commission shall | ||||||
25 | determine whether and to what extent each performance | ||||||
26 | metric shall offer a reward, penalty, or both to a |
| |||||||
| |||||||
1 | utility. For metrics where a reward is offered, and | ||||||
2 | that reward is a cash payment, the reward shall be | ||||||
3 | calculated as a percentage of net benefits from the | ||||||
4 | outcome, net of costs to customers. The Commission | ||||||
5 | shall develop a methodology to calculate net benefits | ||||||
6 | that includes societal costs and benefits. | ||||||
7 | In determining the appropriate level of a reward | ||||||
8 | or penalty, the Commission shall consider: the extent | ||||||
9 | to which the amount is likely to encourage the utility | ||||||
10 | to achieve the performance target in the least cost | ||||||
11 | manner; the value of benefits to customers, the grid, | ||||||
12 | and the environment from achievement of the | ||||||
13 | performance target, including in particular benefits | ||||||
14 | to environmental justice and economically | ||||||
15 | disadvantaged communities; customer bill | ||||||
16 | affordability; the utility's revenue requirement; and | ||||||
17 | other such factors that the Commission deems | ||||||
18 | appropriate. The consideration of these factors shall | ||||||
19 | result in an incentive level that ensures benefits | ||||||
20 | exceed costs for customers. | ||||||
21 | The rewards or penalties shall be calculated based | ||||||
22 | on the electric utility achieving performance targets. | ||||||
23 | In determining the specific rewards or penalties, the | ||||||
24 | Commission shall give proportionate weight to the | ||||||
25 | following set of metrics: affordability, | ||||||
26 | cost-effectiveness, pollution reduction, flexibility, |
| |||||||
| |||||||
1 | customer experience, reliability, and equity. | ||||||
2 | It is the intent of the General Assembly that over | ||||||
3 | time the utility's cost of equity shall be | ||||||
4 | progressively reduced while the opportunity to grow | ||||||
5 | earnings as a result of achieving performance targets | ||||||
6 | shall be progressively increased as the Commission | ||||||
7 | establishes new performance metrics. | ||||||
8 | (g) Initial Metrics. The Commission shall initiate a | ||||||
9 | 4-month workshop process no later than March 1, 2022 for the | ||||||
10 | purpose of informing the enactment of metrics. The workshop | ||||||
11 | shall be facilitated by Staff of the Illinois Commerce | ||||||
12 | Commission, and shall be organized and facilitated in a manner | ||||||
13 | that encourages representation from diverse stakeholders, | ||||||
14 | ensuring equitable opportunities for participation, without | ||||||
15 | requiring formal intervention or representation by an | ||||||
16 | attorney. Following the workshop, the Commission shall | ||||||
17 | establish initial tracking and performance metrics in a | ||||||
18 | docketed proceeding that shall be filed by the electric | ||||||
19 | utility by July 2, 2022. The initial tracking and performance | ||||||
20 | metrics shall be in place for the period of the first | ||||||
21 | Multi-Year Rate Plan. The proceeding shall conclude, and the | ||||||
22 | commission shall issue an order in the matter, no later than | ||||||
23 | April 1, 2023. | ||||||
24 | Unless the tracking metrics in subparagraph (3) of | ||||||
25 | paragraph (A) and performance metrics in subparagraph (3) of | ||||||
26 | paragraph (B) of subsection (f) of this Section are found by |
| |||||||
| |||||||
1 | the Commission during initial metric-setting proceeding to not | ||||||
2 | meet the requirements set forth in this Section, the | ||||||
3 | Commission shall approve these metrics, and it shall establish | ||||||
4 | calculations and goals for the tracking metrics set forth in | ||||||
5 | subparagraph (3) of paragraph (A) of subsection (f) of this | ||||||
6 | Section and calculations, targets, and incentives for the | ||||||
7 | tracking metrics set forth in subparagraph (3) of paragraph | ||||||
8 | (B) of subsection (f) of this Section. If the Commission finds | ||||||
9 | that the metrics set forth in subparagraph (3) of paragraph | ||||||
10 | (A) and subparagraph (3) of paragraph (B) of subsection (f) of | ||||||
11 | this Section do not meet the requirements set forth in this | ||||||
12 | Section, then the Commission shall approve substitute metrics. | ||||||
13 | The Commission may also approve additional tracking and | ||||||
14 | performance metrics as appropriate if they meet the | ||||||
15 | requirements set forth in this Section. | ||||||
16 | Initial Performance Metrics shall include at a minimum, | ||||||
17 | but not limited to, the following: | ||||||
18 | (1) system Average Interruption Frequency Index; | ||||||
19 | (2) customer Average Interruption Duration Index; and | ||||||
20 | (3) peak load reductions enabled by demand response | ||||||
21 | programs. | ||||||
22 | (h) Future Metrics. The Commission shall establish new | ||||||
23 | tracking and performance metrics in future Annual Performance | ||||||
24 | Evaluation proceedings to further measure achievement of the | ||||||
25 | outcomes set forth in paragraph (2) of subsection (f) of this | ||||||
26 | Section and the other goals and requirements of this Section. |
| |||||||
| |||||||
1 | The Commission shall also evaluate metrics that were | ||||||
2 | established in prior Annual Performance Evaluation proceedings | ||||||
3 | under the procedures set forth in subsection (i) to determine | ||||||
4 | if adjustments are required to improve the likelihood of the | ||||||
5 | outcomes described in paragraph (2) of subsection (f). For | ||||||
6 | metrics that were established in prior Annual Performance | ||||||
7 | Evaluation proceedings and that the Commission elects to | ||||||
8 | continue, the design of these metrics, including the goals of | ||||||
9 | tracking metrics and the targets and incentive levels and | ||||||
10 | structures of performance metrics, may be adjusted pursuant to | ||||||
11 | the requirements in this Section. The Commission may also | ||||||
12 | phase out tracking and performance metrics that were | ||||||
13 | established in prior Annual Performance Evaluation proceedings | ||||||
14 | if these metrics no longer meet the requirements of this | ||||||
15 | Section or if they are rendered obsolete by the changing needs | ||||||
16 | and technology of an evolving grid. Additionally, performance | ||||||
17 | metrics that no longer require an incentive to create improved | ||||||
18 | utility performance may become tracking metrics. | ||||||
19 | In service of the outcomes set forth in paragraph (2) of | ||||||
20 | subsection (f), it is the intent of the General Assembly that | ||||||
21 | the Commission in future Annual Performance Evaluation | ||||||
22 | proceedings establish the tracking metrics and performance | ||||||
23 | metrics set forth in subparagraph (A) and subparagraph (B) of | ||||||
24 | paragraph (3) of subsection (f) of this Section when these | ||||||
25 | metrics would be compliant with the requirements set forth in | ||||||
26 | this Section. |
| |||||||
| |||||||
1 | (i) Annual Performance Evaluation. On June 1 of each year, | ||||||
2 | following the approval of the first Multi-Year Rate Plan and | ||||||
3 | its initial delivery year, the Commission shall open an Annual | ||||||
4 | Performance Evaluation proceeding to evaluate the utilities' | ||||||
5 | performance on their metric targets during the delivery year | ||||||
6 | just completed and accordingly determine rewards or penalties | ||||||
7 | or both to be reflected in rates in the following calendar | ||||||
8 | year. | ||||||
9 | (1) Utility Reporting. On April 1 of each year, prior | ||||||
10 | to the Annual Performance Evaluation proceeding, each | ||||||
11 | participating utility shall file a Performance Evaluation | ||||||
12 | Report with the Commission that includes a description of | ||||||
13 | and all data supporting how the participating utility | ||||||
14 | performed under each tracking and performance metric and | ||||||
15 | an identification of any extraordinary events that | ||||||
16 | adversely impacted the utility's performance. The | ||||||
17 | Performance Evaluation Report shall be verified by an | ||||||
18 | independent evaluator as set out in paragraph (3) of this | ||||||
19 | subsection (i) and shall include both a report made to the | ||||||
20 | Commission and a short, public-facing scorecard that makes | ||||||
21 | this information publicly accessible and easily | ||||||
22 | understandable. The Commission shall post each scorecard | ||||||
23 | upon receipt on the Commission's web page in an | ||||||
24 | easily-accessible location. The format of the report and | ||||||
25 | the scorecard shall be consistent across utilities and | ||||||
26 | shall include: |
| |||||||
| |||||||
1 | (A) a list of metrics to which the utility is | ||||||
2 | subject; | ||||||
3 | (B) the previous delivery year's calculation | ||||||
4 | methods and performance on metrics if applicable; | ||||||
5 | (C) the current delivery year's calculation | ||||||
6 | methods and a detailed description of the effect of | ||||||
7 | any differences; | ||||||
8 | (D) the current-year goals for tracking metrics | ||||||
9 | and current-year targets for performance metrics; | ||||||
10 | (E) the current year's performance on metrics | ||||||
11 | targets; | ||||||
12 | (F) a summary of the investments and programs | ||||||
13 | undertaken in order to achieve those metrics targets; | ||||||
14 | and
(G) the annual goals and targets for the remaining | ||||||
15 | years of the current Multi-year Rate Plan period. | ||||||
16 | Within 30 days after the Commission's Order in the | ||||||
17 | utility's Annual Performance Evaluation and Adjustment | ||||||
18 | filing, the utility shall update the public scorecard with | ||||||
19 | any changes required by the Commission and the revised | ||||||
20 | scorecard shall be posted on the Commission's website. | ||||||
21 | (2) Public Workshops. Preceding each Annual | ||||||
22 | Performance Evaluation, no later than April 1 each year, | ||||||
23 | the Commission shall initiate a two-month workshop | ||||||
24 | process. The workshops shall be facilitated by Staff of | ||||||
25 | the Illinois Commerce Commission, and shall be organized | ||||||
26 | and facilitated in a manner that encourages representation |
| |||||||
| |||||||
1 | from diverse stakeholders, ensuring equitable | ||||||
2 | opportunities for participation, without requiring formal | ||||||
3 | intervention or representation by an attorney. During | ||||||
4 | these workshops, each electric utility shall publicly | ||||||
5 | present its performance on tracking and performance | ||||||
6 | metrics following the requirements set forth in paragraph | ||||||
7 | (1) of this subsection (i). The electric utility shall | ||||||
8 | also explain how it has holistically considered the plans, | ||||||
9 | programs, tariffs and policies and its Multi-Year | ||||||
10 | Integrated Grid Plan in order to achieve its metric | ||||||
11 | targets. Members of the public shall have opportunity for | ||||||
12 | comment and feedback. A summary of that feedback shall be | ||||||
13 | provided in an exhibit submitted by Staff of the Illinois | ||||||
14 | Commerce Commission in the Annual Performance Evaluation. | ||||||
15 | (3) Independent Evaluation. The electric utility shall | ||||||
16 | provide for an annual independent evaluation of its | ||||||
17 | performance on metrics. The independent evaluator shall | ||||||
18 | review the utility's assumptions, baselines, targets, | ||||||
19 | calculation methodologies, and other relevant information, | ||||||
20 | especially ensuring that the utility's data for | ||||||
21 | establishing baselines matches actual performance, and | ||||||
22 | shall provide a Report to the Commission in each Annual | ||||||
23 | Performance Evaluation describing the results. The | ||||||
24 | independent evaluator shall present this Report as | ||||||
25 | evidence as a nonparty participant. The independent | ||||||
26 | evaluator shall be hired through a competitive bidding |
| |||||||
| |||||||
1 | process. | ||||||
2 | The Commission shall consider the Report of the | ||||||
3 | independent evaluator in determining the utility's | ||||||
4 | achievement of performance targets. Discrepancies between | ||||||
5 | the utility's assumptions, baselines, targets, or | ||||||
6 | calculations and those of the independent evaluator shall | ||||||
7 | be closely scrutinized by the Commission. If the | ||||||
8 | Commission finds that the utility's reported data for any | ||||||
9 | metric or metrics significantly deviates from the data | ||||||
10 | reported by the independent evaluator, then the Commission | ||||||
11 | shall order the utility to revise its data collection and | ||||||
12 | calculation process within 60 days, with specifications | ||||||
13 | where appropriate. | ||||||
14 | (4) Performance Adjustment. The Commission shall, | ||||||
15 | after notice and hearing in the Annual Performance | ||||||
16 | Evaluation proceeding, enter an order approving the | ||||||
17 | utility's performance adjustment based on its achievement | ||||||
18 | of or failure to achieve its performance targets no later | ||||||
19 | than December 31 each year. The Commission-approved | ||||||
20 | penalties or rewards shall be applied beginning with the | ||||||
21 | next calendar year. Nothing in this Section shall | ||||||
22 | authorize the Commission to reduce or otherwise obviate | ||||||
23 | the imposition of financial rewards or penalties for | ||||||
24 | achieving or failing to achieve one or more of the | ||||||
25 | utility's performance targets. | ||||||
26 | (5) Revisions to Metrics. While tracking and |
| |||||||
| |||||||
1 | performance metrics, along with their associated goals, | ||||||
2 | targets, and incentives, shall not be changed outside of | ||||||
3 | the Annual Performance Evaluation, the Commission may open | ||||||
4 | an investigation into the methodology, including | ||||||
5 | assumptions and calculations, used to measure or quantify | ||||||
6 | progress toward goals and targets in the Annual | ||||||
7 | Performance Evaluation at the request of an intervening | ||||||
8 | party. | ||||||
9 | (220 ILCS 5/16-111.5) | ||||||
10 | Sec. 16-111.5. Provisions relating to procurement. | ||||||
11 | (a) An electric utility that on December 31, 2005 served | ||||||
12 | at least 100,000 customers in Illinois shall procure power and | ||||||
13 | energy for its eligible retail customers in accordance with | ||||||
14 | the applicable provisions set forth in Section 1-75 of the | ||||||
15 | Illinois Power Agency Act and this Section. Beginning with the | ||||||
16 | delivery year commencing on June 1, 2017, such electric | ||||||
17 | utility shall also procure zero emission credits from zero | ||||||
18 | emission facilities in accordance with the applicable | ||||||
19 | provisions set forth in Section 1-75 of the Illinois Power | ||||||
20 | Agency Act, and, for years beginning on or after June 1, 2017, | ||||||
21 | the utility shall procure renewable energy resources in | ||||||
22 | accordance with the applicable provisions set forth in Section | ||||||
23 | 1-75 of the Illinois Power Agency Act and this Section. | ||||||
24 | Beginning with the delivery year commencing June 1, 2023, an | ||||||
25 | electric utility that, on December 31, 2005, served at least |
| |||||||
| |||||||
1 | 3,000,000 customers in Illinois shall procure capacity for its | ||||||
2 | retail customers in accordance with the applicable provisions | ||||||
3 | set forth in Section 1-75 of the Illinois Power Agency Act and | ||||||
4 | this Section. A small multi-jurisdictional electric utility | ||||||
5 | that on December 31, 2005 served less than 100,000 customers | ||||||
6 | in Illinois may elect to procure power and energy for all or a | ||||||
7 | portion of its eligible Illinois retail customers in | ||||||
8 | accordance with the applicable provisions set forth in this | ||||||
9 | Section and Section 1-75 of the Illinois Power Agency Act. | ||||||
10 | This Section shall not apply to a small multi-jurisdictional | ||||||
11 | utility until such time as a small multi-jurisdictional | ||||||
12 | utility requests the Illinois Power Agency to prepare a | ||||||
13 | procurement plan for its eligible retail customers. "Eligible | ||||||
14 | retail customers" for the purposes of this Section means those | ||||||
15 | retail customers that purchase power and energy from the | ||||||
16 | electric utility under fixed-price bundled service tariffs, | ||||||
17 | other than those retail customers whose service is declared or | ||||||
18 | deemed competitive under Section 16-113 and those other | ||||||
19 | customer groups specified in this Section, including | ||||||
20 | self-generating customers, customers electing hourly pricing, | ||||||
21 | or those customers who are otherwise ineligible for | ||||||
22 | fixed-price bundled tariff service. For those customers that | ||||||
23 | are excluded from the procurement plan's electric supply | ||||||
24 | service requirements, and the utility shall procure any supply | ||||||
25 | requirements, including capacity, ancillary services, and | ||||||
26 | hourly priced energy, in the applicable markets as needed to |
| |||||||
| |||||||
1 | serve those customers, provided that the utility may include | ||||||
2 | in its procurement plan load requirements for the load that is | ||||||
3 | associated with those retail customers whose service has been | ||||||
4 | declared or deemed competitive pursuant to Section 16-113 of | ||||||
5 | this Act to the extent that those customers are purchasing | ||||||
6 | power and energy during one of the transition periods | ||||||
7 | identified in subsection (b) of Section 16-113 of this Act. | ||||||
8 | (b) A procurement plan shall be prepared for each electric | ||||||
9 | utility consistent with the applicable requirements of the | ||||||
10 | Illinois Power Agency Act and this Section. For purposes of | ||||||
11 | this Section, Illinois electric utilities that are affiliated | ||||||
12 | by virtue of a common parent company are considered to be a | ||||||
13 | single electric utility. Small multi-jurisdictional utilities | ||||||
14 | may request a procurement plan for a portion of or all of its | ||||||
15 | Illinois load. Each procurement plan shall analyze the | ||||||
16 | projected balance of supply and demand for those retail | ||||||
17 | customers to be included in the plan's electric supply service | ||||||
18 | requirements over a 5-year period, with the first planning | ||||||
19 | year beginning on June 1 of the year following the year in | ||||||
20 | which the plan is filed. The plan shall specifically identify | ||||||
21 | the carbon-free capacity to be procured, as described in | ||||||
22 | Section 1-75 of the Illinois Power Agency Act, and the | ||||||
23 | wholesale products to be procured following plan approval , and | ||||||
24 | shall follow all the requirements set forth in the Public | ||||||
25 | Utilities Act and all applicable State and federal laws, | ||||||
26 | statutes, rules, or regulations, as well as Commission orders. |
| |||||||
| |||||||
1 | Nothing in this Section precludes consideration of contracts | ||||||
2 | longer than 5 years and related forecast data. Unless | ||||||
3 | specified otherwise in this Section, in the procurement plan | ||||||
4 | or in the implementing tariff, any procurement occurring in | ||||||
5 | accordance with this plan shall be competitively bid through a | ||||||
6 | request for proposals process. Approval and implementation of | ||||||
7 | the procurement plan shall be subject to review and approval | ||||||
8 | by the Commission according to the provisions set forth in | ||||||
9 | this Section. A procurement plan shall include each of the | ||||||
10 | following components: | ||||||
11 | (1) Hourly load analysis. This analysis shall include: | ||||||
12 | (i) multi-year historical analysis of hourly | ||||||
13 | loads; | ||||||
14 | (ii) switching trends and competitive retail | ||||||
15 | market analysis; | ||||||
16 | (iii) known or projected changes to future loads; | ||||||
17 | and | ||||||
18 | (iv) growth forecasts by customer class. | ||||||
19 | (2) Analysis of the impact of any demand side and | ||||||
20 | renewable energy initiatives. This analysis shall include: | ||||||
21 | (i) the impact of demand response programs and | ||||||
22 | energy efficiency programs, both current and | ||||||
23 | projected; for small multi-jurisdictional utilities, | ||||||
24 | the impact of demand response and energy efficiency | ||||||
25 | programs approved pursuant to Section 8-408 of this | ||||||
26 | Act, both current and projected; and |
| |||||||
| |||||||
1 | (ii) supply side needs that are projected to be | ||||||
2 | offset by purchases of renewable energy resources, if | ||||||
3 | any. | ||||||
4 | (3) A plan for meeting the expected load requirements | ||||||
5 | that will not be met through preexisting contracts. This | ||||||
6 | plan shall include: | ||||||
7 | (i) definitions of the different Illinois retail | ||||||
8 | customer classes for which supply is being purchased; | ||||||
9 | (ii) the proposed mix of demand-response products | ||||||
10 | for which contracts will be executed during the next | ||||||
11 | year. For small multi-jurisdictional electric | ||||||
12 | utilities that on December 31, 2005 served fewer than | ||||||
13 | 100,000 customers in Illinois, these shall be defined | ||||||
14 | as demand-response products offered in an energy | ||||||
15 | efficiency plan approved pursuant to Section 8-408 of | ||||||
16 | this Act. The cost-effective demand-response measures | ||||||
17 | shall be procured whenever the cost is lower than | ||||||
18 | procuring comparable capacity products, provided that | ||||||
19 | such products shall: | ||||||
20 | (A) be procured by a demand-response provider | ||||||
21 | from those retail customers included in the plan's | ||||||
22 | electric supply service requirements; | ||||||
23 | (B) at least satisfy the demand-response | ||||||
24 | requirements of the regional transmission | ||||||
25 | organization market in which the utility's service | ||||||
26 | territory is located, including, but not limited |
| |||||||
| |||||||
1 | to, any applicable capacity or dispatch | ||||||
2 | requirements; | ||||||
3 | (C) provide for customers' participation in | ||||||
4 | the stream of benefits produced by the | ||||||
5 | demand-response products; | ||||||
6 | (D) provide for reimbursement by the | ||||||
7 | demand-response provider of the utility for any | ||||||
8 | costs incurred as a result of the failure of the | ||||||
9 | supplier of such products to perform its | ||||||
10 | obligations thereunder; and | ||||||
11 | (E) meet the same credit requirements as apply | ||||||
12 | to suppliers of capacity, in the applicable | ||||||
13 | regional transmission organization market; | ||||||
14 | (iii) monthly forecasted system supply | ||||||
15 | requirements, including expected minimum, maximum, and | ||||||
16 | average values for the planning period; | ||||||
17 | (iv) the proposed mix and selection of standard | ||||||
18 | wholesale products for which contracts will be | ||||||
19 | executed during the next year, separately or in | ||||||
20 | combination, to meet that portion of its load | ||||||
21 | requirements not met through pre-existing contracts, | ||||||
22 | including , but not limited to , monthly 5 x 16 peak | ||||||
23 | period block energy, monthly off-peak wrap energy, | ||||||
24 | monthly 7 x 24 energy, annual 5 x 16 energy, annual | ||||||
25 | off-peak wrap energy, annual 7 x 24 energy, monthly | ||||||
26 | capacity, annual capacity, peak load capacity |
| |||||||
| |||||||
1 | obligations, capacity purchase plan, and ancillary | ||||||
2 | services; | ||||||
3 | (v) proposed term structures for each wholesale | ||||||
4 | product type included in the proposed procurement plan | ||||||
5 | portfolio of products; and | ||||||
6 | (vi) an assessment of the price risk, load | ||||||
7 | uncertainty, and other factors that are associated | ||||||
8 | with the proposed procurement plan; this assessment, | ||||||
9 | to the extent possible, shall include an analysis of | ||||||
10 | the following factors: contract terms, time frames for | ||||||
11 | securing products or services, fuel costs, weather | ||||||
12 | patterns, transmission costs, market conditions, and | ||||||
13 | the governmental regulatory environment; the proposed | ||||||
14 | procurement plan shall also identify alternatives for | ||||||
15 | those portfolio measures that are identified as having | ||||||
16 | significant price risk ; and . | ||||||
17 | (vii) the amount of capacity procured for each | ||||||
18 | year through the procurements in subsection (k) of | ||||||
19 | Section 1-75 of the Illinois Power Agency Act and this | ||||||
20 | Section, and the amount of capacity to be procured | ||||||
21 | from each procurement during the next year. | ||||||
22 | (4) Proposed procedures for balancing loads. The | ||||||
23 | procurement plan shall include, for load requirements | ||||||
24 | included in the procurement plan, the process for (i) | ||||||
25 | hourly balancing of supply and demand and (ii) the | ||||||
26 | criteria for portfolio re-balancing in the event of |
| |||||||
| |||||||
1 | significant shifts in load. | ||||||
2 | (5) Long-Term Renewable Resources Procurement Plan. | ||||||
3 | The Agency shall prepare a long-term renewable resources | ||||||
4 | procurement plan for the procurement of renewable energy | ||||||
5 | credits under Sections 1-56 and 1-75 of the Illinois Power | ||||||
6 | Agency Act for delivery beginning in the 2017 delivery | ||||||
7 | year. | ||||||
8 | (i) The initial long-term renewable resources | ||||||
9 | procurement plan and all subsequent revisions shall be | ||||||
10 | subject to review and approval by the Commission. For | ||||||
11 | the purposes of this Section, "delivery year" has the | ||||||
12 | same meaning as in Section 1-10 of the Illinois Power | ||||||
13 | Agency Act. For purposes of this Section, "Agency" | ||||||
14 | shall mean the Illinois Power Agency. | ||||||
15 | (ii) The long-term renewable resources planning | ||||||
16 | process shall be conducted as follows: | ||||||
17 | (A) Electric utilities shall provide a range | ||||||
18 | of load forecasts to the Illinois Power Agency | ||||||
19 | within 45 days of the Agency's request for | ||||||
20 | forecasts, which request shall specify the length | ||||||
21 | and conditions for the forecasts including, but | ||||||
22 | not limited to, the quantity of distributed | ||||||
23 | generation expected to be interconnected for each | ||||||
24 | year. | ||||||
25 | (B) The Agency shall publish for comment the | ||||||
26 | initial long-term renewable resources procurement |
| |||||||
| |||||||
1 | plan no later than 120 days after the effective | ||||||
2 | date of this amendatory Act of the 99th General | ||||||
3 | Assembly and shall review, and may revise, the | ||||||
4 | plan at least every 2 years thereafter. To the | ||||||
5 | extent practicable, the Agency shall review and | ||||||
6 | propose any revisions to the long-term renewable | ||||||
7 | energy resources procurement plan in conjunction | ||||||
8 | with the Agency's other planning and approval | ||||||
9 | processes conducted under this Section. The | ||||||
10 | initial long-term renewable resources procurement | ||||||
11 | plan shall: | ||||||
12 | (aa) Identify the procurement programs and | ||||||
13 | competitive procurement events consistent with | ||||||
14 | the applicable requirements of the Illinois | ||||||
15 | Power Agency Act and shall be designed to | ||||||
16 | achieve the goals set forth in subsection (c) | ||||||
17 | of Section 1-75 of that Act. | ||||||
18 | (bb) Include a schedule for procurements | ||||||
19 | for renewable energy credits from | ||||||
20 | utility-scale wind projects, utility-scale | ||||||
21 | solar projects, and brownfield site | ||||||
22 | photovoltaic projects consistent with | ||||||
23 | subparagraph (G) of paragraph (1) of | ||||||
24 | subsection (c) of Section 1-75 of the Illinois | ||||||
25 | Power Agency Act. | ||||||
26 | (cc) Identify the process whereby the |
| |||||||
| |||||||
1 | Agency will submit to the Commission for | ||||||
2 | review and approval the proposed contracts to | ||||||
3 | implement the programs required by such plan. | ||||||
4 | Copies of the initial long-term renewable | ||||||
5 | resources procurement plan and all subsequent | ||||||
6 | revisions shall be posted and made publicly | ||||||
7 | available on the Agency's and Commission's | ||||||
8 | websites, and copies shall also be provided to | ||||||
9 | each affected electric utility. An affected | ||||||
10 | utility and other interested parties shall have 45 | ||||||
11 | days following the date of posting to provide | ||||||
12 | comment to the Agency on the initial long-term | ||||||
13 | renewable resources procurement plan and all | ||||||
14 | subsequent revisions. All comments submitted to | ||||||
15 | the Agency shall be specific, supported by data or | ||||||
16 | other detailed analyses, and, if objecting to all | ||||||
17 | or a portion of the procurement plan, accompanied | ||||||
18 | by specific alternative wording or proposals. All | ||||||
19 | comments shall be posted on the Agency's and | ||||||
20 | Commission's websites. During this 45-day comment | ||||||
21 | period, the Agency shall hold at least one public | ||||||
22 | hearing within each utility's service area that is | ||||||
23 | subject to the requirements of this paragraph (5) | ||||||
24 | for the purpose of receiving public comment. | ||||||
25 | Within 21 days following the end of the 45-day | ||||||
26 | review period, the Agency may revise the long-term |
| |||||||
| |||||||
1 | renewable resources procurement plan based on the | ||||||
2 | comments received and shall file the plan with the | ||||||
3 | Commission for review and approval. | ||||||
4 | (C) Within 14 days after the filing of the | ||||||
5 | initial long-term renewable resources procurement | ||||||
6 | plan or any subsequent revisions, any person | ||||||
7 | objecting to the plan may file an objection with | ||||||
8 | the Commission. Within 21 days after the filing of | ||||||
9 | the plan, the Commission shall determine whether a | ||||||
10 | hearing is necessary. The Commission shall enter | ||||||
11 | its order confirming or modifying the initial | ||||||
12 | long-term renewable resources procurement plan or | ||||||
13 | any subsequent revisions within 120 days after the | ||||||
14 | filing of the plan by the Illinois Power Agency. | ||||||
15 | (D) The Commission shall approve the initial | ||||||
16 | long-term renewable resources procurement plan and | ||||||
17 | any subsequent revisions, including expressly the | ||||||
18 | forecast used in the plan and taking into account | ||||||
19 | that funding will be limited to the amount of | ||||||
20 | revenues actually collected by the utilities, if | ||||||
21 | the Commission determines that the plan will | ||||||
22 | reasonably and prudently accomplish the | ||||||
23 | requirements of Section 1-56 and subsection (c) of | ||||||
24 | Section 1-75 of the Illinois Power Agency Act. The | ||||||
25 | Commission shall also approve the process for the | ||||||
26 | submission, review, and approval of the proposed |
| |||||||
| |||||||
1 | contracts to procure renewable energy credits or | ||||||
2 | implement the programs authorized by the | ||||||
3 | Commission pursuant to a long-term renewable | ||||||
4 | resources procurement plan approved under this | ||||||
5 | Section. | ||||||
6 | (iii) The Agency or third parties contracted by | ||||||
7 | the Agency shall implement all programs authorized by | ||||||
8 | the Commission in an approved long-term renewable | ||||||
9 | resources procurement plan without further review and | ||||||
10 | approval by the Commission. Third parties shall not | ||||||
11 | begin implementing any programs or receive any payment | ||||||
12 | under this Section until the Commission has approved | ||||||
13 | the contract or contracts under the process authorized | ||||||
14 | by the Commission in item (D) of subparagraph (ii) of | ||||||
15 | paragraph (5) of this subsection (b) and the third | ||||||
16 | party and the Agency or utility, as applicable, have | ||||||
17 | executed the contract. For those renewable energy | ||||||
18 | credits subject to procurement through a competitive | ||||||
19 | bid process under the plan or under the initial | ||||||
20 | forward procurements for wind and solar resources | ||||||
21 | described in subparagraph (G) of paragraph (1) of | ||||||
22 | subsection (c) of Section 1-75 of the Illinois Power | ||||||
23 | Agency Act, the Agency shall follow the procurement | ||||||
24 | process specified in the provisions relating to | ||||||
25 | electricity procurement in subsections (e) through (i) | ||||||
26 | of this Section. |
| |||||||
| |||||||
1 | (iv) An electric utility shall recover its costs | ||||||
2 | associated with the procurement of renewable energy | ||||||
3 | credits under this Section through an automatic | ||||||
4 | adjustment clause tariff under subsection (k) of | ||||||
5 | Section 16-108 of this Act. A utility shall not be | ||||||
6 | required to advance any payment or pay any amounts | ||||||
7 | under this Section that exceed the actual amount of | ||||||
8 | revenues collected by the utility under paragraph (6) | ||||||
9 | of subsection (c) of Section 1-75 of the Illinois | ||||||
10 | Power Agency Act and subsection (k) of Section 16-108 | ||||||
11 | of this Act, and contracts executed under this Section | ||||||
12 | shall expressly incorporate this limitation. | ||||||
13 | (v) For the public interest, safety, and welfare, | ||||||
14 | the Agency and the Commission may adopt rules to carry | ||||||
15 | out the provisions of this Section on an emergency | ||||||
16 | basis immediately following the effective date of this | ||||||
17 | amendatory Act of the 99th General Assembly. | ||||||
18 | (vi) On or before July 1 of each year, the | ||||||
19 | Commission shall hold an informal hearing for the | ||||||
20 | purpose of receiving comments on the prior year's | ||||||
21 | procurement process and any recommendations for | ||||||
22 | change. | ||||||
23 | (6) Capacity Procurement Plan. | ||||||
24 | (i) No later than 90 days after notice by a public | ||||||
25 | utility of election of the Fixed Resource Requirement | ||||||
26 | Alternative and Illinois Commerce Commission approval |
| |||||||
| |||||||
1 | of same, the Illinois Power Agency shall publish for | ||||||
2 | public comment a draft Capacity Procurement Plan | ||||||
3 | pursuant to subsection (k) of Section 1-75 of the | ||||||
4 | Illinois Power Agency Act. The Agency shall conduct at | ||||||
5 | least one public workshop to elicit input regarding | ||||||
6 | development of the Plan. The Agency shall provide 60 | ||||||
7 | days for public comment on the draft Plan, and within | ||||||
8 | 30 days after the deadline for comment shall submit | ||||||
9 | the Plan to the Illinois Commerce Commission. | ||||||
10 | (ii) After providing appropriate opportunities for | ||||||
11 | objection and hearing, the Commission shall enter its | ||||||
12 | order approving or modifying the Plan within 60 days | ||||||
13 | after the filing of the plan by the Illinois Power | ||||||
14 | Agency. The Commission shall approve the Plan if it | ||||||
15 | meets the objectives set forth in subsection (k) of | ||||||
16 | Section 1-75 of the Illinois Power Agency Act. If the | ||||||
17 | Plan does not meet those objectives, the Commission | ||||||
18 | shall modify the Plan or shall provide specific | ||||||
19 | direction to the Agency to modify and resubmit the | ||||||
20 | Plan within 30 days. | ||||||
21 | (c) The procurement process set forth in Section 1-75 of | ||||||
22 | the Illinois Power Agency Act and subsection (e) of this | ||||||
23 | Section shall be administered by a procurement administrator | ||||||
24 | and monitored by a procurement monitor. | ||||||
25 | (1) The procurement administrator shall: | ||||||
26 | (i) design the final procurement process in |
| |||||||
| |||||||
1 | accordance with Section 1-75 of the Illinois Power | ||||||
2 | Agency Act and subsection (e) of this Section | ||||||
3 | following Commission approval of the procurement plan; | ||||||
4 | (ii) develop benchmarks in accordance with | ||||||
5 | subsection (e)(3) to be used to evaluate bids; these | ||||||
6 | benchmarks shall be submitted to the Commission for | ||||||
7 | review and approval on a confidential basis prior to | ||||||
8 | the procurement event; | ||||||
9 | (iii) serve as the interface between the electric | ||||||
10 | utility and suppliers; | ||||||
11 | (iv) manage the bidder pre-qualification and | ||||||
12 | registration process; | ||||||
13 | (v) obtain the electric utilities' agreement to | ||||||
14 | the final form of all supply contracts and credit | ||||||
15 | collateral agreements; | ||||||
16 | (vi) administer the request for proposals process; | ||||||
17 | (vii) have the discretion to negotiate to | ||||||
18 | determine whether bidders are willing to lower the | ||||||
19 | price of bids that meet the benchmarks approved by the | ||||||
20 | Commission; any post-bid negotiations with bidders | ||||||
21 | shall be limited to price only and shall be completed | ||||||
22 | within 24 hours after opening the sealed bids and | ||||||
23 | shall be conducted in a fair and unbiased manner; in | ||||||
24 | conducting the negotiations, there shall be no | ||||||
25 | disclosure of any information derived from proposals | ||||||
26 | submitted by competing bidders; if information is |
| |||||||
| |||||||
1 | disclosed to any bidder, it shall be provided to all | ||||||
2 | competing bidders; | ||||||
3 | (viii) maintain confidentiality of supplier and | ||||||
4 | bidding information in a manner consistent with all | ||||||
5 | applicable laws, rules, regulations, and tariffs; | ||||||
6 | (ix) submit a confidential report to the | ||||||
7 | Commission recommending acceptance or rejection of | ||||||
8 | bids; | ||||||
9 | (x) notify the utility of contract counterparties | ||||||
10 | and contract specifics; and | ||||||
11 | (xi) administer related contingency procurement | ||||||
12 | events. | ||||||
13 | (2) The procurement monitor, who shall be retained by | ||||||
14 | the Commission, shall: | ||||||
15 | (i) monitor interactions among the procurement | ||||||
16 | administrator, suppliers, and utility; | ||||||
17 | (ii) monitor and report to the Commission on the | ||||||
18 | progress of the procurement process; | ||||||
19 | (iii) provide an independent confidential report | ||||||
20 | to the Commission regarding the results of the | ||||||
21 | procurement event; | ||||||
22 | (iv) assess compliance with the procurement plans | ||||||
23 | approved by the Commission for each utility that on | ||||||
24 | December 31, 2005 provided electric service to at | ||||||
25 | least 100,000 customers in Illinois and for each small | ||||||
26 | multi-jurisdictional utility that on December 31, 2005 |
| |||||||
| |||||||
1 | served less than 100,000 customers in Illinois; | ||||||
2 | (v) preserve the confidentiality of supplier and | ||||||
3 | bidding information in a manner consistent with all | ||||||
4 | applicable laws, rules, regulations, and tariffs; | ||||||
5 | (vi) provide expert advice to the Commission and | ||||||
6 | consult with the procurement administrator regarding | ||||||
7 | issues related to procurement process design, rules, | ||||||
8 | protocols, and policy-related matters; and | ||||||
9 | (vii) consult with the procurement administrator | ||||||
10 | regarding the development and use of benchmark | ||||||
11 | criteria, standard form contracts, credit policies, | ||||||
12 | and bid documents. | ||||||
13 | (d) Except as provided in subsection (j), the planning | ||||||
14 | process shall be conducted as follows: | ||||||
15 | (1) Beginning in 2008, each Illinois utility procuring | ||||||
16 | power pursuant to this Section shall annually provide a | ||||||
17 | range of load forecasts to the Illinois Power Agency by | ||||||
18 | July 15 of each year, or such other date as may be required | ||||||
19 | by the Commission or Agency. The load forecasts shall | ||||||
20 | cover the 5-year procurement planning period for the next | ||||||
21 | procurement plan and shall include hourly data | ||||||
22 | representing a high-load, low-load, and expected-load | ||||||
23 | scenario for the load of those retail customers included | ||||||
24 | in the plan's electric supply service requirements. The | ||||||
25 | utility shall provide supporting data and assumptions for | ||||||
26 | each of the scenarios.
|
| |||||||
| |||||||
1 | (2) Beginning in 2008, the Illinois Power Agency shall | ||||||
2 | prepare a procurement plan by August 15th of each year, or | ||||||
3 | such other date as may be required by the Commission. The | ||||||
4 | procurement plan shall identify the portfolio of | ||||||
5 | demand-response and power and energy products to be | ||||||
6 | procured. Cost-effective demand-response measures shall be | ||||||
7 | procured as set forth in item (iii) of subsection (b) of | ||||||
8 | this Section. Copies of the procurement plan shall be | ||||||
9 | posted and made publicly available on the Agency's and | ||||||
10 | Commission's websites, and copies shall also be provided | ||||||
11 | to each affected electric utility. An affected utility | ||||||
12 | shall have 30 days following the date of posting to | ||||||
13 | provide comment to the Agency on the procurement plan. | ||||||
14 | Other interested entities also may comment on the | ||||||
15 | procurement plan. All comments submitted to the Agency | ||||||
16 | shall be specific, supported by data or other detailed | ||||||
17 | analyses, and, if objecting to all or a portion of the | ||||||
18 | procurement plan, accompanied by specific alternative | ||||||
19 | wording or proposals. All comments shall be posted on the | ||||||
20 | Agency's and Commission's websites. During this 30-day | ||||||
21 | comment period, the Agency shall hold at least one public | ||||||
22 | hearing within each utility's service area for the purpose | ||||||
23 | of receiving public comment on the procurement plan. | ||||||
24 | Within 14 days following the end of the 30-day review | ||||||
25 | period, the Agency shall revise the procurement plan as | ||||||
26 | necessary based on the comments received and file the |
| |||||||
| |||||||
1 | procurement plan with the Commission and post the | ||||||
2 | procurement plan on the websites. | ||||||
3 | (3) Within 5 days after the filing of the procurement | ||||||
4 | plan, any person objecting to the procurement plan shall | ||||||
5 | file an objection with the Commission. Within 10 days | ||||||
6 | after the filing, the Commission shall determine whether a | ||||||
7 | hearing is necessary. The Commission shall enter its order | ||||||
8 | confirming or modifying the procurement plan within 90 | ||||||
9 | days after the filing of the procurement plan by the | ||||||
10 | Illinois Power Agency. | ||||||
11 | (4) The Commission shall approve the procurement plan, | ||||||
12 | including expressly the forecast used in the procurement | ||||||
13 | plan, if the Commission determines that it will ensure | ||||||
14 | adequate, reliable, affordable, efficient, and | ||||||
15 | environmentally sustainable electric service at the lowest | ||||||
16 | total cost over time, taking into account any benefits of | ||||||
17 | price stability. | ||||||
18 | (e) The procurement process shall include each of the | ||||||
19 | following components: | ||||||
20 | (1) Solicitation, pre-qualification, and registration | ||||||
21 | of bidders. The procurement administrator shall | ||||||
22 | disseminate information to potential bidders to promote a | ||||||
23 | procurement event, notify potential bidders that the | ||||||
24 | procurement administrator may enter into a post-bid price | ||||||
25 | negotiation with bidders that meet the applicable | ||||||
26 | benchmarks, provide supply requirements, and otherwise |
| |||||||
| |||||||
1 | explain the competitive procurement process. In addition | ||||||
2 | to such other publication as the procurement administrator | ||||||
3 | determines is appropriate, this information shall be | ||||||
4 | posted on the Illinois Power Agency's and the Commission's | ||||||
5 | websites. The procurement administrator shall also | ||||||
6 | administer the prequalification process, including | ||||||
7 | evaluation of credit worthiness, compliance with | ||||||
8 | procurement rules, and agreement to the standard form | ||||||
9 | contract developed pursuant to paragraph (2) of this | ||||||
10 | subsection (e). The procurement administrator shall then | ||||||
11 | identify and register bidders to participate in the | ||||||
12 | procurement event. | ||||||
13 | (2) Standard contract forms and credit terms and | ||||||
14 | instruments. The procurement administrator, in | ||||||
15 | consultation with the utilities, the Commission, and other | ||||||
16 | interested parties and subject to Commission oversight, | ||||||
17 | shall develop and provide standard contract forms for the | ||||||
18 | supplier contracts that meet generally accepted industry | ||||||
19 | practices. Standard credit terms and instruments that meet | ||||||
20 | generally accepted industry practices shall be similarly | ||||||
21 | developed. The procurement administrator shall make | ||||||
22 | available to the Commission all written comments it | ||||||
23 | receives on the contract forms, credit terms, or | ||||||
24 | instruments. If the procurement administrator cannot reach | ||||||
25 | agreement with the applicable electric utility as to the | ||||||
26 | contract terms and conditions, the procurement |
| |||||||
| |||||||
1 | administrator must notify the Commission of any disputed | ||||||
2 | terms and the Commission shall resolve the dispute. The | ||||||
3 | terms of the contracts shall not be subject to negotiation | ||||||
4 | by winning bidders, and the bidders must agree to the | ||||||
5 | terms of the contract in advance so that winning bids are | ||||||
6 | selected solely on the basis of price. | ||||||
7 | (3) Establishment of a market-based price benchmark. | ||||||
8 | As part of the development of the procurement process, the | ||||||
9 | procurement administrator, in consultation with the | ||||||
10 | Commission staff, Agency staff, and the procurement | ||||||
11 | monitor, shall establish benchmarks for evaluating the | ||||||
12 | final prices in the contracts for each of the products | ||||||
13 | that will be procured through the procurement process. The | ||||||
14 | benchmarks shall be based on price data for similar | ||||||
15 | products for the same delivery period and same delivery | ||||||
16 | hub, or other delivery hubs after adjusting for that | ||||||
17 | difference. The price benchmarks may also be adjusted to | ||||||
18 | take into account differences between the information | ||||||
19 | reflected in the underlying data sources and the specific | ||||||
20 | products and procurement process being used to procure | ||||||
21 | power for the Illinois utilities. The benchmarks shall be | ||||||
22 | confidential but shall be provided to, and will be subject | ||||||
23 | to Commission review and approval, prior to a procurement | ||||||
24 | event. | ||||||
25 | (4) Request for proposals competitive procurement | ||||||
26 | process. The procurement administrator shall design and |
| |||||||
| |||||||
1 | issue a request for proposals to supply electricity in | ||||||
2 | accordance with each utility's procurement plan, as | ||||||
3 | approved by the Commission. The request for proposals | ||||||
4 | shall set forth a procedure for sealed, binding commitment | ||||||
5 | bidding with pay-as-bid settlement, and provision for | ||||||
6 | selection of bids on the basis of price. | ||||||
7 | (5) A plan for implementing contingencies in the event | ||||||
8 | of supplier default or failure of the procurement process | ||||||
9 | to fully meet the expected load requirement due to | ||||||
10 | insufficient supplier participation, Commission rejection | ||||||
11 | of results, or any other cause. | ||||||
12 | (i) Event of supplier default: In the event of | ||||||
13 | supplier default, the utility shall review the | ||||||
14 | contract of the defaulting supplier to determine if | ||||||
15 | the amount of supply is 200 megawatts or greater, and | ||||||
16 | if there are more than 60 days remaining of the | ||||||
17 | contract term. If both of these conditions are met, | ||||||
18 | and the default results in termination of the | ||||||
19 | contract, the utility shall immediately notify the | ||||||
20 | Illinois Power Agency that a request for proposals | ||||||
21 | must be issued to procure replacement power, and the | ||||||
22 | procurement administrator shall run an additional | ||||||
23 | procurement event. If the contracted supply of the | ||||||
24 | defaulting supplier is less than 200 megawatts or | ||||||
25 | there are less than 60 days remaining of the contract | ||||||
26 | term, the utility shall procure power and energy from |
| |||||||
| |||||||
1 | the applicable regional transmission organization | ||||||
2 | market, including ancillary services, capacity, and | ||||||
3 | day-ahead or real time energy, or both, for the | ||||||
4 | duration of the contract term to replace the | ||||||
5 | contracted supply; provided, however, that if a needed | ||||||
6 | product is not available through the regional | ||||||
7 | transmission organization market it shall be purchased | ||||||
8 | from the wholesale market. | ||||||
9 | (ii) Failure of the procurement process to fully | ||||||
10 | meet the expected load requirement: If the procurement | ||||||
11 | process fails to fully meet the expected load | ||||||
12 | requirement due to insufficient supplier participation | ||||||
13 | or due to a Commission rejection of the procurement | ||||||
14 | results, the procurement administrator, the | ||||||
15 | procurement monitor, and the Commission staff shall | ||||||
16 | meet within 10 days to analyze potential causes of low | ||||||
17 | supplier interest or causes for the Commission | ||||||
18 | decision. If changes are identified that would likely | ||||||
19 | result in increased supplier participation, or that | ||||||
20 | would address concerns causing the Commission to | ||||||
21 | reject the results of the prior procurement event, the | ||||||
22 | procurement administrator may implement those changes | ||||||
23 | and rerun the request for proposals process according | ||||||
24 | to a schedule determined by those parties and | ||||||
25 | consistent with Section 1-75 of the Illinois Power | ||||||
26 | Agency Act and this subsection. In any event, a new |
| |||||||
| |||||||
1 | request for proposals process shall be implemented by | ||||||
2 | the procurement administrator within 90 days after the | ||||||
3 | determination that the procurement process has failed | ||||||
4 | to fully meet the expected load requirement. | ||||||
5 | (iii) In all cases where there is insufficient | ||||||
6 | supply provided under contracts awarded through the | ||||||
7 | procurement process to fully meet the electric | ||||||
8 | utility's load requirement, the utility shall meet the | ||||||
9 | load requirement by procuring power and energy from | ||||||
10 | the applicable regional transmission organization | ||||||
11 | market, including ancillary services, capacity, and | ||||||
12 | day-ahead or real time energy, or both; provided, | ||||||
13 | however, that if a needed product is not available | ||||||
14 | through the regional transmission organization market | ||||||
15 | it shall be purchased from the wholesale market. | ||||||
16 | (6) The procurement process described in this | ||||||
17 | subsection is exempt from the requirements of the Illinois | ||||||
18 | Procurement Code, pursuant to Section 20-10 of that Code. | ||||||
19 | (f) Within 2 business days after opening the sealed bids, | ||||||
20 | the procurement administrator shall submit a confidential | ||||||
21 | report to the Commission. The report shall contain the results | ||||||
22 | of the bidding for each of the products along with the | ||||||
23 | procurement administrator's recommendation for the acceptance | ||||||
24 | and rejection of bids based on the price benchmark criteria | ||||||
25 | and other factors observed in the process. The procurement | ||||||
26 | monitor also shall submit a confidential report to the |
| |||||||
| |||||||
1 | Commission within 2 business days after opening the sealed | ||||||
2 | bids. The report shall contain the procurement monitor's | ||||||
3 | assessment of bidder behavior in the process as well as an | ||||||
4 | assessment of the procurement administrator's compliance with | ||||||
5 | the procurement process and rules. The Commission shall review | ||||||
6 | the confidential reports submitted by the procurement | ||||||
7 | administrator and procurement monitor, and shall accept or | ||||||
8 | reject the recommendations of the procurement administrator | ||||||
9 | within 2 business days after receipt of the reports. | ||||||
10 | (g) Within 3 business days after the Commission decision | ||||||
11 | approving the results of a procurement event, the utility | ||||||
12 | shall enter into binding contractual arrangements with the | ||||||
13 | winning suppliers using the standard form contracts; except | ||||||
14 | that the utility shall not be required either directly or | ||||||
15 | indirectly to execute the contracts if a tariff that is | ||||||
16 | consistent with subsection (l) of this Section has not been | ||||||
17 | approved and placed into effect for that utility. | ||||||
18 | (h) The names of the successful bidders and the load | ||||||
19 | weighted average of the winning bid prices for each contract | ||||||
20 | type and for each contract term shall be made available to the | ||||||
21 | public at the time of Commission approval of a procurement | ||||||
22 | event. The Commission, the procurement monitor, the | ||||||
23 | procurement administrator, the Illinois Power Agency, and all | ||||||
24 | participants in the procurement process shall maintain the | ||||||
25 | confidentiality of all other supplier and bidding information | ||||||
26 | in a manner consistent with all applicable laws, rules, |
| |||||||
| |||||||
1 | regulations, and tariffs. Confidential information, including | ||||||
2 | the confidential reports submitted by the procurement | ||||||
3 | administrator and procurement monitor pursuant to subsection | ||||||
4 | (f) of this Section, shall not be made publicly available and | ||||||
5 | shall not be discoverable by any party in any proceeding, | ||||||
6 | absent a compelling demonstration of need, nor shall those | ||||||
7 | reports be admissible in any proceeding other than one for law | ||||||
8 | enforcement purposes. | ||||||
9 | (i) Within 2 business days after a Commission decision | ||||||
10 | approving the results of a procurement event or such other | ||||||
11 | date as may be required by the Commission from time to time, | ||||||
12 | the utility shall file for informational purposes with the | ||||||
13 | Commission its actual or estimated retail supply charges, as | ||||||
14 | applicable, by customer supply group reflecting the costs | ||||||
15 | associated with the procurement and computed in accordance | ||||||
16 | with the tariffs filed pursuant to subsection (l) of this | ||||||
17 | Section and approved by the Commission. | ||||||
18 | (j) Within 60 days following August 28, 2007 (the | ||||||
19 | effective date of Public Act 95-481), each electric utility | ||||||
20 | that on December 31, 2005 provided electric service to at | ||||||
21 | least 100,000 customers in Illinois shall prepare and file | ||||||
22 | with the Commission an initial procurement plan, which shall | ||||||
23 | conform in all material respects to the requirements of the | ||||||
24 | procurement plan set forth in subsection (b); provided, | ||||||
25 | however, that the Illinois Power Agency Act shall not apply to | ||||||
26 | the initial procurement plan prepared pursuant to this |
| |||||||
| |||||||
1 | subsection. The initial procurement plan shall identify the | ||||||
2 | portfolio of power and energy products to be procured and | ||||||
3 | delivered for the period June 2008 through May 2009, and shall | ||||||
4 | identify the proposed procurement administrator, who shall | ||||||
5 | have the same experience and expertise as is required of a | ||||||
6 | procurement administrator hired pursuant to Section 1-75 of | ||||||
7 | the Illinois Power Agency Act. Copies of the procurement plan | ||||||
8 | shall be posted and made publicly available on the | ||||||
9 | Commission's website. The initial procurement plan may include | ||||||
10 | contracts for renewable resources that extend beyond May 2009. | ||||||
11 | (i) Within 14 days following filing of the initial | ||||||
12 | procurement plan, any person may file a detailed objection | ||||||
13 | with the Commission contesting the procurement plan | ||||||
14 | submitted by the electric utility. All objections to the | ||||||
15 | electric utility's plan shall be specific, supported by | ||||||
16 | data or other detailed analyses. The electric utility may | ||||||
17 | file a response to any objections to its procurement plan | ||||||
18 | within 7 days after the date objections are due to be | ||||||
19 | filed. Within 7 days after the date the utility's response | ||||||
20 | is due, the Commission shall determine whether a hearing | ||||||
21 | is necessary. If it determines that a hearing is | ||||||
22 | necessary, it shall require the hearing to be completed | ||||||
23 | and issue an order on the procurement plan within 60 days | ||||||
24 | after the filing of the procurement plan by the electric | ||||||
25 | utility. | ||||||
26 | (ii) The order shall approve or modify the procurement |
| |||||||
| |||||||
1 | plan, approve an independent procurement administrator, | ||||||
2 | and approve or modify the electric utility's tariffs that | ||||||
3 | are proposed with the initial procurement plan. The | ||||||
4 | Commission shall approve the procurement plan if the | ||||||
5 | Commission determines that it will ensure adequate, | ||||||
6 | reliable, affordable, efficient, and environmentally | ||||||
7 | sustainable electric service at the lowest total cost over | ||||||
8 | time, taking into account any benefits of price stability. | ||||||
9 | (k) (Blank). | ||||||
10 | (k-5) (Blank). | ||||||
11 | (l) An electric utility shall recover its costs incurred | ||||||
12 | under this Section, including, but not limited to, the costs | ||||||
13 | of procuring power and energy demand-response resources under | ||||||
14 | this Section. The utility shall file with the initial | ||||||
15 | procurement plan its proposed tariffs through which its costs | ||||||
16 | of procuring power that are incurred pursuant to a | ||||||
17 | Commission-approved procurement plan and those other costs | ||||||
18 | identified in this subsection (l), will be recovered. The | ||||||
19 | tariffs shall include a formula rate or charge designed to | ||||||
20 | pass through both the costs incurred by the utility in | ||||||
21 | procuring a supply of electric power and energy for the | ||||||
22 | applicable customer classes with no mark-up or return on the | ||||||
23 | price paid by the utility for that supply, plus any just and | ||||||
24 | reasonable costs that the utility incurs in arranging and | ||||||
25 | providing for the supply of electric power and energy. The | ||||||
26 | formula rate or charge shall also contain provisions that |
| |||||||
| |||||||
1 | ensure that its application does not result in over or under | ||||||
2 | recovery due to changes in customer usage and demand patterns, | ||||||
3 | and that provide for the correction, on at least an annual | ||||||
4 | basis, of any accounting errors that may occur. A utility | ||||||
5 | shall recover through the tariff all reasonable costs incurred | ||||||
6 | to implement or comply with any procurement plan that is | ||||||
7 | developed and put into effect pursuant to Section 1-75 of the | ||||||
8 | Illinois Power Agency Act and this Section, including any fees | ||||||
9 | assessed by the Illinois Power Agency, costs associated with | ||||||
10 | load balancing, and contingency plan costs. The electric | ||||||
11 | utility shall also recover its full costs of procuring | ||||||
12 | electric supply for which it contracted before the effective | ||||||
13 | date of this Section in conjunction with the provision of full | ||||||
14 | requirements service under fixed-price bundled service tariffs | ||||||
15 | subsequent to December 31, 2006. All such costs shall be | ||||||
16 | deemed to have been prudently incurred. The pass-through | ||||||
17 | tariffs that are filed and approved pursuant to this Section | ||||||
18 | shall not be subject to review under, or in any way limited by, | ||||||
19 | Section 16-111(i) of this Act. All of the costs incurred by the | ||||||
20 | electric utility associated with the purchase of zero emission | ||||||
21 | credits in accordance with subsection (d-5) of Section 1-75 of | ||||||
22 | the Illinois Power Agency Act and, beginning June 1, 2017, all | ||||||
23 | of the costs incurred by the electric utility associated with | ||||||
24 | the purchase of renewable energy resources in accordance with | ||||||
25 | Sections 1-56 and 1-75 of the Illinois Power Agency Act, shall | ||||||
26 | be recovered through the electric utility's tariffed charges |
| |||||||
| |||||||
1 | applicable to all of its retail customers, as specified in | ||||||
2 | subsection (k) of Section 16-108 of this Act, and shall not be | ||||||
3 | recovered through the electric utility's tariffed charges for | ||||||
4 | electric power and energy supply to its eligible retail | ||||||
5 | customers. | ||||||
6 | (m) The Commission has the authority to adopt rules to | ||||||
7 | carry out the provisions of this Section. For the public | ||||||
8 | interest, safety, and welfare, the Commission also has | ||||||
9 | authority to adopt rules to carry out the provisions of this | ||||||
10 | Section on an emergency basis immediately following August 28, | ||||||
11 | 2007 (the effective date of Public Act 95-481). | ||||||
12 | (n) Notwithstanding any other provision of this Act, any | ||||||
13 | affiliated electric utilities that submit a single procurement | ||||||
14 | plan covering their combined needs may procure for those | ||||||
15 | combined needs in conjunction with that plan, and may enter | ||||||
16 | jointly into power supply contracts, purchases, and other | ||||||
17 | procurement arrangements, and allocate capacity and energy and | ||||||
18 | cost responsibility therefor among themselves in proportion to | ||||||
19 | their requirements. | ||||||
20 | (o) On or before June 1 of each year, the Commission shall | ||||||
21 | hold an informal hearing for the purpose of receiving comments | ||||||
22 | on the prior year's procurement process and any | ||||||
23 | recommendations for change.
| ||||||
24 | (p) An electric utility subject to this Section may | ||||||
25 | propose to invest, lease, own, or operate an electric | ||||||
26 | generation facility as part of its procurement plan, provided |
| |||||||
| |||||||
1 | the utility demonstrates that such facility is the least-cost | ||||||
2 | option to provide electric service to those retail customers | ||||||
3 | included in the plan's electric supply service requirements. | ||||||
4 | If the facility is shown to be the least-cost option and is | ||||||
5 | included in a procurement plan prepared in accordance with | ||||||
6 | Section 1-75 of the Illinois Power Agency Act and this | ||||||
7 | Section, then the electric utility shall make a filing | ||||||
8 | pursuant to Section 8-406 of this Act, and may request of the | ||||||
9 | Commission any statutory relief required thereunder. If the | ||||||
10 | Commission grants all of the necessary approvals for the | ||||||
11 | proposed facility, such supply shall thereafter be considered | ||||||
12 | as a pre-existing contract under subsection (b) of this | ||||||
13 | Section. The Commission shall in any order approving a | ||||||
14 | proposal under this subsection specify how the utility will | ||||||
15 | recover the prudently incurred costs of investing in, leasing, | ||||||
16 | owning, or operating such generation facility through just and | ||||||
17 | reasonable rates charged to those retail customers included in | ||||||
18 | the plan's electric supply service requirements. Cost recovery | ||||||
19 | for facilities included in the utility's procurement plan | ||||||
20 | pursuant to this subsection shall not be subject to review | ||||||
21 | under or in any way limited by the provisions of Section | ||||||
22 | 16-111(i) of this Act. Nothing in this Section is intended to | ||||||
23 | prohibit a utility from filing for a fuel adjustment clause as | ||||||
24 | is otherwise permitted under Section 9-220 of this Act.
| ||||||
25 | (q) If the Illinois Power Agency filed with the | ||||||
26 | Commission, under Section 16-111.5 of this Act, its proposed |
| |||||||
| |||||||
1 | procurement plan for the period commencing June 1, 2017, and | ||||||
2 | the Commission has not yet entered its final order approving | ||||||
3 | the plan on or before the effective date of this amendatory Act | ||||||
4 | of the 99th General Assembly, then the Illinois Power Agency | ||||||
5 | shall file a notice of withdrawal with the Commission, after | ||||||
6 | the effective date of this amendatory Act of the 99th General | ||||||
7 | Assembly, to withdraw the proposed procurement of renewable | ||||||
8 | energy resources to be approved under the plan, other than the | ||||||
9 | procurement of renewable energy credits from distributed | ||||||
10 | renewable energy generation devices using funds previously | ||||||
11 | collected from electric utilities' retail customers that take | ||||||
12 | service pursuant to electric utilities' hourly pricing tariff | ||||||
13 | or tariffs and, for an electric utility that serves less than | ||||||
14 | 100,000 retail customers in the State, other than the | ||||||
15 | procurement of renewable energy credits from distributed | ||||||
16 | renewable energy generation devices. Upon receipt of the | ||||||
17 | notice, the Commission shall enter an order that approves the | ||||||
18 | withdrawal of the proposed procurement of renewable energy | ||||||
19 | resources from the plan. The initially proposed procurement of | ||||||
20 | renewable energy resources shall not be approved or be the | ||||||
21 | subject of any further hearing, investigation, proceeding, or | ||||||
22 | order of any kind. | ||||||
23 | This amendatory Act of the 99th General Assembly preempts | ||||||
24 | and supersedes any order entered by the Commission that | ||||||
25 | approved the Illinois Power Agency's procurement plan for the | ||||||
26 | period commencing June 1, 2017, to the extent it is |
| |||||||
| |||||||
1 | inconsistent with the provisions of this amendatory Act of the | ||||||
2 | 99th General Assembly. To the extent any previously entered | ||||||
3 | order approved the procurement of renewable energy resources, | ||||||
4 | the portion of that order approving the procurement shall be | ||||||
5 | void, other than the procurement of renewable energy credits | ||||||
6 | from distributed renewable energy generation devices using | ||||||
7 | funds previously collected from electric utilities' retail | ||||||
8 | customers that take service under electric utilities' hourly | ||||||
9 | pricing tariff or tariffs and, for an electric utility that | ||||||
10 | serves less than 100,000 retail customers in the State, other | ||||||
11 | than the procurement of renewable energy credits for | ||||||
12 | distributed renewable energy generation devices. | ||||||
13 | (Source: P.A. 99-906, eff. 6-1-17 .) | ||||||
14 | (220 ILCS 5/16-111.10 new) | ||||||
15 | Sec. 16-111.10. Equitable Energy Upgrade Program. | ||||||
16 | (a) The General Assembly finds and declares that Illinois | ||||||
17 | homes and businesses can contribute to the creation of a clean | ||||||
18 | energy economy, conservation of natural resources, and | ||||||
19 | reliability of the electricity grid through the installation | ||||||
20 | of cost-effective renewable energy generation, energy | ||||||
21 | efficiency, and energy storage systems. Further, a large | ||||||
22 | portion of Illinois residents and businesses that would | ||||||
23 | benefit from the installation of energy efficiency, storage, | ||||||
24 | and renewable energy generation systems are unable to purchase | ||||||
25 | systems due to capital or credit barriers. This State should |
| |||||||
| |||||||
1 | pursue options to enable many more Illinoisans to access the | ||||||
2 | health, environmental, and financial benefits of new clean | ||||||
3 | energy technology. | ||||||
4 | (b) As used in this Section: | ||||||
5 | "Commission" means the Illinois Commerce Commission. | ||||||
6 | "Energy project" means renewable energy generation | ||||||
7 | systems, including solar projects, energy efficiency upgrades, | ||||||
8 | energy storage systems, or any combination thereof. | ||||||
9 | "The Fund" means the Clean Energy Jobs and Justice Fund | ||||||
10 | established in the Illinois Clean Energy Jobs and Justice Fund | ||||||
11 | Act. | ||||||
12 | "Program" means the Equitable Energy Upgrade Program | ||||||
13 | established under subsection (c). | ||||||
14 | "Utility" means electric utilities providing services | ||||||
15 | under this Act. | ||||||
16 | (c) The Illinois Commerce Commission shall open an | ||||||
17 | investigation into and direct all electric utilities in this | ||||||
18 | State to adopt an Equitable Energy Upgrade Program that | ||||||
19 | permits customers to finance the construction of energy | ||||||
20 | projects through an optional tariff payable directly through | ||||||
21 | their utility bill, modeled after the Pay As You Save system, | ||||||
22 | developed by the Energy Efficiency Institute. The Program | ||||||
23 | model shall enable utilities to offer to make investments in | ||||||
24 | energy projects to customer properties with low-cost capital | ||||||
25 | and use an opt-in tariff to recover the costs. The Program | ||||||
26 | shall be designed to provide customers with immediate |
| |||||||
| |||||||
1 | financial savings if they choose to participate. The Program | ||||||
2 | shall allow residential electric utility customers that own | ||||||
3 | the property, or renters that have permission of the property | ||||||
4 | owner, for which they subscribe to utility service to agree to | ||||||
5 | the installation of an energy project. The Program shall | ||||||
6 | ensure: | ||||||
7 | (1) eligible projects do not require upfront payments; | ||||||
8 | however, customers may pay down the costs for projects | ||||||
9 | with a payment to the installing contractor in order to | ||||||
10 | qualify projects that would otherwise require upfront | ||||||
11 | payments; | ||||||
12 | (2) eligible projects have sufficient estimated | ||||||
13 | savings and estimated lifespan to produce significant, | ||||||
14 | immediate net savings; | ||||||
15 | (3) participants shall agree the utility can recover | ||||||
16 | its costs for the projects at their location by paying for | ||||||
17 | the project through an optional tariff directly through | ||||||
18 | the participant's electricity bill, allowing participants | ||||||
19 | to benefit from installation of energy projects without | ||||||
20 | traditional loans; and | ||||||
21 | (4) accessibility by lower-income residents and | ||||||
22 | environmental justice community residents. | ||||||
23 | (d) Program rollout. The Commission shall establish | ||||||
24 | Program guidelines with the anticipated schedule of Program | ||||||
25 | availability as follows: | ||||||
26 | (1) Year 1. Beginning in the first year of operation, |
| |||||||
| |||||||
1 | each utility is required to obtain low-cost capital of at | ||||||
2 | least $20,000,000 annually for investments in energy | ||||||
3 | projects. | ||||||
4 | (2) Year 2. Beginning in the second year of operation, | ||||||
5 | each utility is required to obtain low-cost capital for | ||||||
6 | investments in energy projects of at least $40,000,000 | ||||||
7 | annually. | ||||||
8 | (3) Year 3. Beginning in the third year of operation, | ||||||
9 | each utility is required to obtain low-cost capital for | ||||||
10 | investments in as many systems as customers demand, | ||||||
11 | subject to available capital provided by the utility, | ||||||
12 | State, or other lenders. | ||||||
13 | (e) In the design of the Equitable Energy Upgrade Program, | ||||||
14 | the Commission shall: | ||||||
15 | (1) Within 270 days after the effective date of this | ||||||
16 | amendatory Act of the 102nd General Assembly, convene a | ||||||
17 | workshop during which interested participants may discuss | ||||||
18 | issues and submit comments related to the Program. | ||||||
19 | (2) Establish Program guidelines for implementation of | ||||||
20 | the Program in accordance with Pay As You Save Essential | ||||||
21 | Elements and Minimum Program Requirements that electric | ||||||
22 | utilities must abide by when implementing the Program. | ||||||
23 | Program guidelines established by the Commission shall | ||||||
24 | include the following elements: | ||||||
25 | (A) Capital funds. The Commission shall establish | ||||||
26 | conditions under which utilities secure capital to |
| |||||||
| |||||||
1 | fund the energy projects. The Commission may allow | ||||||
2 | utilities to raise capital independently, work with | ||||||
3 | third-party lenders to secure the capital for | ||||||
4 | participants, or a combination thereof. Any process | ||||||
5 | the Commission approves must use a market mechanism to | ||||||
6 | identify the least costly sources of capital funds so | ||||||
7 | as to pass on maximum savings to participants. The | ||||||
8 | State of Illinois or the Clean Energy Jobs and Justice | ||||||
9 | Fund may also choose to provide capital for this | ||||||
10 | Program. | ||||||
11 | (B) Customer protections. Customer protection | ||||||
12 | guidelines should be designed consistent with PAYS | ||||||
13 | Essential Elements and Minimum Program Requirements. | ||||||
14 | (C) Energy project vendors. The Commission shall | ||||||
15 | establish conditions by which utilities may connect | ||||||
16 | Program participants to energy project vendors. In | ||||||
17 | setting conditions for connection, the Commission may | ||||||
18 | prioritize vendors that have a history of good | ||||||
19 | relations with the State including vendors that have | ||||||
20 | hired participants from State-created job training | ||||||
21 | programs. | ||||||
22 | (D) Guarantee that conservative estimates of | ||||||
23 | financial savings will immediately and significantly | ||||||
24 | exceed Program costs for Program participants. | ||||||
25 | (f) Within 120 days after the Commission releases the | ||||||
26 | Program conditions established under this Section, each |
| |||||||
| |||||||
1 | utility subject to the requirements of this Section shall | ||||||
2 | submit an informational filing to the Commission that | ||||||
3 | describes its plan for implementing the provisions of this | ||||||
4 | Section. If the Commission finds that the submission does not | ||||||
5 | properly comply with the statutory or regulatory requirements | ||||||
6 | of the Program, the Commission may require that the utility | ||||||
7 | make modifications to its filing. | ||||||
8 | (g) An independent process evaluation shall be conducted | ||||||
9 | after one year of the Program's operation. An independent | ||||||
10 | impact evaluation shall be conducted after 3 years of | ||||||
11 | operation, excluding one-time startup costs and results from | ||||||
12 | the first 12 months of the Program. The Commission shall | ||||||
13 | convene an advisory council of stakeholders, including | ||||||
14 | representation of low-income and environmental justice | ||||||
15 | community members to make recommendations in response to the | ||||||
16 | findings of the independent evaluation. | ||||||
17 | (h) The Equitable Energy Upgrade Program shall be designed | ||||||
18 | using PAYS system guidelines to be cost-effective for | ||||||
19 | customers. Only projects that are deemed to be cost-effective | ||||||
20 | and can be reasonably expected to ensure customer savings are | ||||||
21 | eligible for funding through the Program, unless, as specified | ||||||
22 | in paragraph (1) of subsection (c), customers able to make | ||||||
23 | upfront copayments to installers buy down the cost of projects | ||||||
24 | so they can be deemed cost-effective. | ||||||
25 | (i) Eligible customers must be: | ||||||
26 | (1) property renters with permission of the property |
| |||||||
| |||||||
1 | owner; or | ||||||
2 | (2) property owners. | ||||||
3 | (j) Calculation of project cost-effectiveness shall be | ||||||
4 | based upon PAYS system requirements. | ||||||
5 | (1) The calculation of cost-effectiveness must be | ||||||
6 | conducted by an objective process approved by the | ||||||
7 | Commission and based on rates in effect at the time of | ||||||
8 | installation. | ||||||
9 | (2) A project shall be considered cost-effective only | ||||||
10 | if it is estimated to produce significant immediate net | ||||||
11 | savings, not counting copayments voluntarily made by | ||||||
12 | customers. The Commission may establish guidelines by | ||||||
13 | which this required savings is estimated. | ||||||
14 | (k) The Equitable Energy Upgrade Program should be modeled | ||||||
15 | after the Pay As You Save system, by which Program | ||||||
16 | participants finance energy projects using the savings that | ||||||
17 | the energy project creates with a tariffed on-bill program. | ||||||
18 | Eligible projects shall not create personal debt for the | ||||||
19 | customer, result in a lien in the event of nonpayment, or | ||||||
20 | require customers to pay monthly charges for any upgrade that | ||||||
21 | fails and is not repaired within 21 days. The utility may | ||||||
22 | restart charges once the upgrade is repaired and functioning | ||||||
23 | and extend the term of payments to recover its costs for missed | ||||||
24 | payments and deferred cost recovery, providing the upgrade | ||||||
25 | continues to function. | ||||||
26 | (l) Any energy project that is defective or damaged due to |
| |||||||
| |||||||
1 | no fault of the participant must be either replaced or | ||||||
2 | repaired with parts that meet industry standards at the cost | ||||||
3 | of the utility or vendor, as specified by the Commission, and | ||||||
4 | charges shall be suspended until repairs or replacement is | ||||||
5 | completed. The Commission may establish, increase, or replace | ||||||
6 | the requirements imposed in this subsection. The Commission | ||||||
7 | may determine that this responsibility is best handled by | ||||||
8 | participating project vendors in the form of insurance, | ||||||
9 | contractual guarantees, or other mechanisms, and issue rules | ||||||
10 | detailing this requirement. In no case will customers be | ||||||
11 | charged monthly payments for upgrades that are no longer | ||||||
12 | functioning. | ||||||
13 | (m) In the event of nonpayment, the remaining balance due | ||||||
14 | to pay off the system shall remain with the utility meter at an | ||||||
15 | upgraded location. The Commission shall establish conditions | ||||||
16 | subject to this constraint in the event of nonpayment that are | ||||||
17 | in accordance with the PAYS system. | ||||||
18 | (n) If the demand by utility customers exceeds the Program | ||||||
19 | capital supply in a given year, utilities shall ensure that | ||||||
20 | 50% of participants are: (1) customers in neighborhoods where | ||||||
21 | a majority of households make 150% or less of area median | ||||||
22 | income; or (2) residents of environmental justice communities. | ||||||
23 | (o) Utilities shall endeavor to inform customers about the | ||||||
24 | availability of the Program, their potential eligibility for | ||||||
25 | participation in the Program, and whether they are likely to | ||||||
26 | save money on the basis of an estimate conducted using |
| |||||||
| |||||||
1 | variables consistent with the Program that the utility has at | ||||||
2 | its disposal. The Commission may establish guidelines by which | ||||||
3 | utilities must abide by this directive and alternatives if the | ||||||
4 | Commission deems utilities' efforts as inadequate. | ||||||
5 | (p) Subject to Commission specifications established in | ||||||
6 | subsection (c), each utility shall work with certified project | ||||||
7 | vendors selected using a request for proposals process to | ||||||
8 | establish the terms and processes under which a utility can | ||||||
9 | install eligible renewable energy generation and energy | ||||||
10 | storage systems using the capital to fit the Equitable Energy | ||||||
11 | Upgrade model. The certified project vendor shall explain and | ||||||
12 | offer the approved upgrades to customers and shall assist | ||||||
13 | customers in applying for financing through the Equitable | ||||||
14 | Energy Upgrade Program. As part of the process, vendors shall | ||||||
15 | also provide participants with information about any other | ||||||
16 | relevant incentives that may be available. | ||||||
17 | (q) An electric utility shall recover all of the prudently | ||||||
18 | incurred costs of offering a program approved by the | ||||||
19 | Commission under this Section. For investor-owned utilities, | ||||||
20 | shareholder incentives will be proportional to meeting | ||||||
21 | Commission approved thresholds for the number of customers | ||||||
22 | served and the amount of its investments in those locations. | ||||||
23 | (r) The Illinois Commerce Commission shall adopt all rules | ||||||
24 | necessary for the administration of this Section. | ||||||
25 | (220 ILCS 5/16-128B) |
| |||||||
| |||||||
1 | Sec. 16-128B. Qualified energy efficiency installers. | ||||||
2 | (a) Within 18 months after the effective date of this | ||||||
3 | amendatory Act of the 99th General Assembly, the Commission | ||||||
4 | shall adopt rules, including emergency rules, establishing a | ||||||
5 | process for entities installing energy efficiency measures to | ||||||
6 | certify compliance with the requirements of this Section. | ||||||
7 | The process shall include an option to complete the | ||||||
8 | certification electronically by completing forms on-line. An | ||||||
9 | entity installing energy efficiency measures shall be | ||||||
10 | permitted to complete the certification after the subject work | ||||||
11 | has been completed. | ||||||
12 | The Commission shall maintain on its website a list of | ||||||
13 | entities installing energy efficiency measures that have | ||||||
14 | successfully completed the certification process. | ||||||
15 | (b) In addition to any authority granted to the Commission | ||||||
16 | under this Act, the Commission may: | ||||||
17 | (1) determine which entities are subject to | ||||||
18 | certification under this Section; | ||||||
19 | (2) impose reasonable certification fees and | ||||||
20 | penalties; | ||||||
21 | (3) adopt disciplinary procedures; | ||||||
22 | (4) investigate any and all activities subject to this | ||||||
23 | Section, including violations thereof; | ||||||
24 | (5) adopt procedures to issue or renew, or to refuse | ||||||
25 | to issue or renew, a certification or to revoke, suspend, | ||||||
26 | place on probation, reprimand, or otherwise discipline a |
| |||||||
| |||||||
1 | certified entity under this Act or take other enforcement | ||||||
2 | action against an entity subject to this Section; and | ||||||
3 | (6) prescribe forms to be issued for the | ||||||
4 | administration and enforcement of this Section. | ||||||
5 | (c) An electric utility may not provide a retail customer | ||||||
6 | with a rebate or other energy efficiency incentive for a | ||||||
7 | measure that exceeds a minimal amount determined by the | ||||||
8 | Commission unless the customer provides the electric utility | ||||||
9 | with (1) a certification that the person installing the energy | ||||||
10 | efficiency measure was a self-installer; or (2) evidence that | ||||||
11 | the energy efficiency measure was installed by an entity | ||||||
12 | certified under this Section that is also in good standing | ||||||
13 | with the Commission. | ||||||
14 | (d) The Commission shall: | ||||||
15 | (1) require entities installing energy efficiency | ||||||
16 | measures to be certified to do business and to be bonded in | ||||||
17 | this State; | ||||||
18 | (2) ensure that entities installing energy efficiency | ||||||
19 | measures have the requisite knowledge, skill, training, | ||||||
20 | experience, and competence to perform functions in a safe | ||||||
21 | and reliable manner as required under subsection (a) of | ||||||
22 | Section 16-128 of this Act; | ||||||
23 | (3) ensure that entities installing energy efficiency | ||||||
24 | measures conform to applicable building and electrical | ||||||
25 | codes; | ||||||
26 | (4) ensure that all entities installing energy |
| |||||||
| |||||||
1 | efficiency measures meet recognized industry standards as | ||||||
2 | the Commission deems appropriate; | ||||||
3 | (5) include any additional requirements that the | ||||||
4 | Commission deems reasonable to ensure that entities | ||||||
5 | installing energy efficiency measures meet adequate | ||||||
6 | training, financial, and competency requirements; | ||||||
7 | (6) ensure that all entities installing energy | ||||||
8 | efficiency measures obtain certificates of insurance in | ||||||
9 | sufficient amounts and coverages that the Commission so | ||||||
10 | determines; and | ||||||
11 | (7) identify and determine the training or other | ||||||
12 | programs by which persons or entities may obtain the | ||||||
13 | requisite training, skill, or experience necessary to | ||||||
14 | achieve and maintain compliance with the requirements of | ||||||
15 | this Section. | ||||||
16 | (e) Fees and penalties collected under this Section shall | ||||||
17 | be deposited into the Public Utility Fund and used to fund the | ||||||
18 | Commission's compliance with the obligations imposed by this | ||||||
19 | Section. | ||||||
20 | (f) The rules adopted under this Section shall specify the | ||||||
21 | initial dates for compliance with the rules. | ||||||
22 | (g) For purposes of this Section, entities installing | ||||||
23 | energy efficiency measures shall endeavor to support the | ||||||
24 | diversity goals of this State by attracting, developing, | ||||||
25 | retaining, and providing opportunities to employees of all | ||||||
26 | backgrounds and by supporting women-owned female-owned , black, |
| |||||||
| |||||||
1 | indigenous, and people of color-owned minority-owned , and | ||||||
2 | veteran-owned , and small businesses , and nonprofit | ||||||
3 | organizations, worker-owned cooperatives, and other entities .
| ||||||
4 | (Source: P.A. 99-906, eff. 6-1-17 .) | ||||||
5 | (220 ILCS 5/16-131 new) | ||||||
6 | Sec. 16-131. Right to self-generate electricity. | ||||||
7 | (a) As used in this Section: | ||||||
8 | "Electric cooperative" has the meaning set forth in | ||||||
9 | Section 3.4 of the Electric Supplier Act. | ||||||
10 | "Municipal utility" means a public utility that is owned | ||||||
11 | and operated by any political subdivision or municipal | ||||||
12 | corporation of this State or owned by such an entity and | ||||||
13 | operated by any lessee or any operating agent thereof. | ||||||
14 | "Public utility" has the definition set forth in Section | ||||||
15 | 3-105 of this Act. | ||||||
16 | (b) Customers shall have the right to, and the Commission | ||||||
17 | shall protect the rights of customers to, produce, consume, | ||||||
18 | and store their own energy without discriminatory | ||||||
19 | repercussions from a public utility, electric cooperative, or | ||||||
20 | municipal utility, regardless of whether that energy is | ||||||
21 | produced via a system that is owned outright, leased, or | ||||||
22 | financed through a behind-the-meter solar power-purchase | ||||||
23 | agreement or other means. This includes customers' rights to: | ||||||
24 | (1) generate, consume, and export renewable energy and | ||||||
25 | reduce his or her use of electricity obtained from the |
| |||||||
| |||||||
1 | grid; | ||||||
2 | (2) use technology to store energy at his or her | ||||||
3 | residence; | ||||||
4 | (3) connect his or her electrical system that | ||||||
5 | generates renewable energy, stores energy, or any | ||||||
6 | combination thereof, with the electricity meter on the | ||||||
7 | customer's premises that is provided by a public utility, | ||||||
8 | electric cooperative, or municipal utility: | ||||||
9 | (A) in a timely manner; | ||||||
10 | (B) in accordance with requirements established by | ||||||
11 | the electric utility to ensure the safety of utility | ||||||
12 | workers; and | ||||||
13 | (C) after providing written notice to the electric | ||||||
14 | utility providing service in the service territory, | ||||||
15 | installing a nomenclature plate on the electrical | ||||||
16 | meter panel and meeting all applicable state and local | ||||||
17 | safety and electrical code requirements associated | ||||||
18 | with installing a parallel distributed generation | ||||||
19 | system; and | ||||||
20 | (4) receive fair credit for energy exported to the | ||||||
21 | grid. | ||||||
22 | (c) A public utility, electric cooperative, or municipal | ||||||
23 | utility customer who produces, consumes, and stores his or her | ||||||
24 | own energy shall not face discriminatory rate design, fees, | ||||||
25 | treatment, or excessive compliance requirements as provided by | ||||||
26 | paragraph (3) of subsection (n) of Section 16-107.5. |
| |||||||
| |||||||
1 | (d) A public utility, electric cooperative, or municipal | ||||||
2 | utility customer shall have a right to appeal any decision | ||||||
3 | related to self-generation and storage that violates these | ||||||
4 | rights to self-generation and non-discrimination pursuant to | ||||||
5 | the provisions of this Section through a complaint process. | ||||||
6 | (e) The Illinois Commerce Commission shall adopt all rules | ||||||
7 | necessary for the administration of this Section. | ||||||
8 | Section 90-45. The Environmental Protection Act is amended | ||||||
9 | by changing Section 9.10 and by adding Section 9.18 as | ||||||
10 | follows:
| ||||||
11 | (415 ILCS 5/9.10)
| ||||||
12 | Sec. 9.10. Fossil fuel-powered electric generating units | ||||||
13 | Fossil fuel-fired electric generating plants .
| ||||||
14 | (a) As used in this Section: | ||||||
15 | "Board" means the Illinois Pollution Control Board. | ||||||
16 | "BIPOC" and "black, indigenous, and people of color" are | ||||||
17 | identical in meaning and have the same definition as used in | ||||||
18 | the Clean Jobs, Workforce and Contractor Equity Act. | ||||||
19 | "Emissions" means greenhouse gases, particulate matter, | ||||||
20 | mercury, nitrogen oxides, sulfur dioxide, and any other | ||||||
21 | pollutant that the Agency deems appropriate for regulation to | ||||||
22 | protect health or land in the State. | ||||||
23 | "Frontline community" means any community or municipality | ||||||
24 | within a 3-mile radius of a fossil fuel-powered electric |
| |||||||
| |||||||
1 | generating unit. | ||||||
2 | "Meaningful involvement" means: (1) potentially affected | ||||||
3 | populations have an appropriate opportunity to participate in | ||||||
4 | decisions about a proposed regulatory action that may affect | ||||||
5 | their environment or health; (2) the populations' | ||||||
6 | contributions can influence the EPA's rulemaking decisions; | ||||||
7 | (3) the concerns of all participants involved shall be | ||||||
8 | considered in the decision-making process; and (4) the IEPA | ||||||
9 | shall seek out and facilitate the involvement of populations | ||||||
10 | potentially affected by the IEPA's proposed regulatory action. | ||||||
11 | (a-1) (a) The General Assembly finds and declares that:
| ||||||
12 | (1) fossil fuel-powered electric generating units | ||||||
13 | fossil fuel-fired electric generating plants are a | ||||||
14 | significant source
of air emissions in this State and have | ||||||
15 | become the subject of a number of
important new studies of | ||||||
16 | their effects on the public health;
| ||||||
17 | (2) existing state and federal policies, that allow | ||||||
18 | older plants that meet
federal standards to operate | ||||||
19 | without meeting the more stringent requirements
applicable | ||||||
20 | to new plants, are being questioned on the basis of their
| ||||||
21 | environmental impacts and the economic distortions such | ||||||
22 | policies cause in
a deregulated energy market;
| ||||||
23 | (3) fossil fuel-powered electric generating units | ||||||
24 | fossil fuel-fired electric generating plants are, or may | ||||||
25 | be,
affected by a number of regulatory programs, some of | ||||||
26 | which are under review
or development on the state and |
| |||||||
| |||||||
1 | national levels, and to a certain extent the
international | ||||||
2 | level, including the federal acid rain program, | ||||||
3 | tropospheric
ozone, mercury
and other hazardous pollutant | ||||||
4 | control requirements, regional haze, and global
warming;
| ||||||
5 | (4) scientific uncertainty regarding the formation of | ||||||
6 | certain components
of regional haze and the air quality | ||||||
7 | modeling that predict impacts of
control measures requires | ||||||
8 | careful consideration of the timing of the
control of some | ||||||
9 | of the pollutants from these facilities, particularly | ||||||
10 | sulfur
dioxides and nitrogen oxides that each interact | ||||||
11 | with ammonia and other
substances in the atmosphere;
| ||||||
12 | (5) the development of energy policies to promote a | ||||||
13 | safe, sufficient,
reliable, and affordable energy supply | ||||||
14 | on the state and national levels is
being affected by the | ||||||
15 | on-going deregulation of the power generation industry
and | ||||||
16 | the evolving energy markets;
| ||||||
17 | (6) the Governor's formation of an Energy Cabinet and | ||||||
18 | the development of a
State energy policy calls for actions | ||||||
19 | by the Agency and the Board that are in
harmony with the | ||||||
20 | energy needs and policy of the State, while protecting the
| ||||||
21 | public health and the environment;
| ||||||
22 | (7) reducing greenhouse gas emissions and other air | ||||||
23 | pollutants such as particulate matter, sulfur dioxide, and | ||||||
24 | nitrogen oxide is critical to improving the health and | ||||||
25 | welfare of Illinois residents by decreasing respiratory | ||||||
26 | diseases, cardiovascular diseases, and related |
| |||||||
| |||||||
1 | mortalities; lowering customers' energy costs; and | ||||||
2 | responding to the growing impacts of climate change from | ||||||
3 | fossil fuel generation; | ||||||
4 | (8) through reductions in harmful emissions and | ||||||
5 | strategic planning for Illinois residents currently | ||||||
6 | employed by and communities reliant on fossil fuel-powered | ||||||
7 | electric generating units, eliminating greenhouse gas | ||||||
8 | emissions from the electricity generation sector is a | ||||||
9 | priority for the State; | ||||||
10 | (9) The House of Representatives of the 100th General | ||||||
11 | Assembly recognized this problem and, in adopting House | ||||||
12 | Resolution 490 on June 26, 2017, it supported the Paris | ||||||
13 | Climate Agreement and urged the State of Illinois to join | ||||||
14 | the United States Climate Alliance and develop a plan to | ||||||
15 | achieve 100% clean energy by 2045;
| ||||||
16 | (7) Illinois coal is an abundant resource and an | ||||||
17 | important component of
Illinois' economy whose use should | ||||||
18 | be encouraged to the greatest extent
possible consistent | ||||||
19 | with protecting the public health and the environment;
| ||||||
20 | (8) renewable forms of energy should be promoted as an | ||||||
21 | important element
of the energy and environmental policies | ||||||
22 | of the State and that it is a goal of
the State that at | ||||||
23 | least 5% of the State's energy production and use be | ||||||
24 | derived
from renewable forms of energy by 2010 and at | ||||||
25 | least 15% from renewable forms
of energy by 2020;
| ||||||
26 | (10) (9) efforts on the state and federal levels are |
| |||||||
| |||||||
1 | underway to consider the
multiple environmental | ||||||
2 | regulations affecting electric generating plants in
order | ||||||
3 | to improve the ability of government and the affected | ||||||
4 | industry to engage
in effective planning through the use | ||||||
5 | of multi-pollutant strategies; and
| ||||||
6 | (11) (10) these issues, taken together, call for a | ||||||
7 | comprehensive review of the
impact of these facilities on | ||||||
8 | the public health, considering also the energy
supply, | ||||||
9 | reliability, and costs, the role of renewable forms of | ||||||
10 | energy, and the
developments in federal law and | ||||||
11 | regulations that may affect any state actions,
prior to | ||||||
12 | making final decisions in Illinois.
| ||||||
13 | (b) Taking into account the findings and declarations of | ||||||
14 | the General
Assembly contained in subsection (a) of this | ||||||
15 | Section, the Agency shall, within 180 days after the effective | ||||||
16 | date of this amendatory Act of the 102nd General Assembly, | ||||||
17 | initiate a rulemaking to amend Title 35 of the Illinois | ||||||
18 | Administrative Code to establish annual declining greenhouse | ||||||
19 | gas pollution caps and caps on co-pollutants, including, but | ||||||
20 | not limited to, particulate matter (including both PM 10 and | ||||||
21 | PM 2.5 ), mercury, nitrogen oxides, and sulfur dioxide, beginning | ||||||
22 | in 2023 from all fossil fuel-powered electric generating units | ||||||
23 | (including, but not limited to, coal-fired, coal-derived, | ||||||
24 | oil-fired, combustion turbine, integrated gasification | ||||||
25 | combined cycle, and cogeneration facilities with a nameplate | ||||||
26 | capacity that exceeds 25 MW) so as to progressively eliminate |
| |||||||
| |||||||
1 | all emissions of those pollutants from Illinois' electric | ||||||
2 | sector by the year 2030. No later than one year after receipt | ||||||
3 | of the Agency's proposal under this Section, the Board shall | ||||||
4 | adopt rules setting out declining annual emissions caps for | ||||||
5 | greenhouse gases (CO 2 equivalent) and co-pollutants, | ||||||
6 | including, but not limited to, particulate matter (including | ||||||
7 | both PM 10 and PM 2.5 ), mercury, nitrogen oxides, and sulfur | ||||||
8 | dioxide, for each individual fossil fuel-powered electric | ||||||
9 | generating unit in Illinois as well as aggregate annual | ||||||
10 | statewide emissions caps. The Board may set different | ||||||
11 | declining caps for each plant, but caps must decline to zero | ||||||
12 | emissions for all plants by 2030. As part of its rulemaking | ||||||
13 | proposal, the Agency shall: | ||||||
14 | (1) ensure that power plants located near densely | ||||||
15 | populated and environmental justice communities and those | ||||||
16 | with sulfur dioxide emission rates above 0.0007 pounds per | ||||||
17 | million Btu are prioritized for more rapid, mandatory, | ||||||
18 | plant-specific emissions reductions for both greenhouse | ||||||
19 | gases and co-pollutants; | ||||||
20 | (2) develop an environmental justice analysis, in | ||||||
21 | partnership with the Illinois Commission on Environmental | ||||||
22 | Justice and with frontline community feedback, to inform a | ||||||
23 | draft rule proposal and identification of power plants of | ||||||
24 | particular concern requiring priority emissions | ||||||
25 | reductions. This analysis shall include a cumulative | ||||||
26 | impacts assessment and use existing methodologies and |
| |||||||
| |||||||
1 | findings, used and as may be updated by the Illinois Power | ||||||
2 | Agency and its Administrator in its Illinois Solar for All | ||||||
3 | Program, taking into account the following factors: | ||||||
4 | (A) Population density; | ||||||
5 | (B) National-Scale Air Toxics Assessment (NATA) | ||||||
6 | air toxics cancer risk; | ||||||
7 | (C) NATA respiratory hazard index; | ||||||
8 | (D) NATA diesel PM; | ||||||
9 | (E) particulate matter; | ||||||
10 | (F) ozone; | ||||||
11 | (G) traffic proximity and volume; | ||||||
12 | (H) lead paint indicator; | ||||||
13 | (I) proximity to Risk Management Plan sites; | ||||||
14 | (J) proximity to Hazardous Waste Treatment, | ||||||
15 | Storage, and Disposal Facilities; | ||||||
16 | (K) proximity to National Priorities List sites; | ||||||
17 | (L) Wastewater Dischargers Indicator; | ||||||
18 | (M) percent low-income; | ||||||
19 | (N) percent black, indigenous, and people of | ||||||
20 | color; | ||||||
21 | (O) percent less than a high school education; | ||||||
22 | (P) linguistic isolation; | ||||||
23 | (Q) age (individuals under age 5 or over 64); | ||||||
24 | (R) number of asthma-related emergency department | ||||||
25 | visits; and | ||||||
26 | (S) frequency of low birth weight infants; |
| |||||||
| |||||||
1 | (3) conduct a robust and inclusive stakeholder process | ||||||
2 | prior to initiating a rulemaking proceeding before the | ||||||
3 | Illinois Pollution Control Board that ensures the | ||||||
4 | meaningful participation of Illinois residents, especially | ||||||
5 | those most impacted by fossil fuel-powered electric | ||||||
6 | generating units. To ensure meaningful involvement in its | ||||||
7 | stakeholder process, the agency shall: | ||||||
8 | (A) include a formal public comment period with at | ||||||
9 | least 4 public hearings located in communities | ||||||
10 | geographically dispersed, where fossil fuel-powered | ||||||
11 | electric generating units are located; | ||||||
12 | (B) ensure full and fair access for working | ||||||
13 | residents by providing opportunity for public comment | ||||||
14 | outside the workday; and | ||||||
15 | (C) issue a responsiveness summary with a draft | ||||||
16 | rulemaking briefly describing and responding to, at a | ||||||
17 | minimum, all frontline community comments raised | ||||||
18 | during the stakeholder process and public comment | ||||||
19 | period; | ||||||
20 | (4) participate in strategic planning efforts with the | ||||||
21 | Department of Commerce and Economic Opportunity to | ||||||
22 | identify needs and initiatives for communities and workers | ||||||
23 | economically impacted by the decline in fossil fuel | ||||||
24 | generation; | ||||||
25 | (5) evaluate individual units using the criteria above | ||||||
26 | and set appropriate annually declining caps for emission |
| |||||||
| |||||||
1 | reductions, which ultimately result in caps of zero | ||||||
2 | emissions from all fossil fuel-powered electric generating | ||||||
3 | units by January 1, 2030; | ||||||
4 | (6) include provisions to allow owners or operators of | ||||||
5 | fossil fuel-powered electric generating units to continue | ||||||
6 | operating while using their best efforts to resolve any | ||||||
7 | reliability requirements with regional grid operators and | ||||||
8 | cease operations as soon as practicable in situations | ||||||
9 | where achieving the emission reductions required by the | ||||||
10 | Agency's rulemaking proposal necessitates that a | ||||||
11 | particular unit cease operations and a regional grid | ||||||
12 | operator determines that operation of that unit is | ||||||
13 | required to continue to maintain transmission reliability. | ||||||
14 | The Agency's rulemaking proposal shall include mechanisms | ||||||
15 | designed to limit, to the extent possible, any such | ||||||
16 | disruption to the State's emission reduction program, | ||||||
17 | including an evaluation of when and how advanced notice of | ||||||
18 | intended unit closures should be given to regional grid | ||||||
19 | operators; and | ||||||
20 | (7) establish emissions caps for (i) individual fossil | ||||||
21 | fuel-powered electric generating units and (ii) the entire | ||||||
22 | electric sector. The emissions caps shall include all | ||||||
23 | emissions, including greenhouse gases and co-pollutants. | ||||||
24 | (A) Annual aggregate electric sector emissions | ||||||
25 | caps. The aggregate emissions cap shall apply to the | ||||||
26 | entire Illinois electric sector and include the sum of |
| |||||||
| |||||||
1 | emissions from all fossil fuel-powered electric | ||||||
2 | generating units. The Agency shall establish a | ||||||
3 | schedule through which the aggregate cap shall decline | ||||||
4 | annually. A baseline amount shall be calculated by | ||||||
5 | averaging the emissions from 2017, 2018, and 2019 of | ||||||
6 | plants operating as of the effective date of this | ||||||
7 | amendatory Act of the 102nd General Assembly. To | ||||||
8 | ensure consistent progress toward the goal of | ||||||
9 | eliminating all emissions from Illinois' electric | ||||||
10 | sector by 2030, the annual aggregate emissions cap | ||||||
11 | shall decrease each year by no less than 7% of the | ||||||
12 | baseline amount. | ||||||
13 | (B) Annual unit-specific emissions caps. Annual | ||||||
14 | emissions caps shall apply to each fossil fuel-powered | ||||||
15 | electric generating unit in the State and be | ||||||
16 | consistent with achieving the aggregate emissions cap. | ||||||
17 | Starting in 2023, the annual emissions cap for each | ||||||
18 | plant shall be no greater than the highest emissions | ||||||
19 | amount from any of the 3 previous years of operation. | ||||||
20 | If a plant first became operational less than 3 years | ||||||
21 | before being subject to a unit-specific emissions cap, | ||||||
22 | then the annual emissions cap for such a plant shall be | ||||||
23 | no greater than its previous year of operation; or if a | ||||||
24 | fossil fuel-powered electric generating unit has been | ||||||
25 | operational less than one year, then the Agency shall | ||||||
26 | set a cap that is consistent with achieving the |
| |||||||
| |||||||
1 | aggregate emissions cap and the goal of eliminating | ||||||
2 | all emissions from Illinois' electric sector by 2030. | ||||||
3 | (C) Annual report. Each year, the Agency shall | ||||||
4 | prepare and publish a report on the implementation, | ||||||
5 | review, and updating of the schedules regulating | ||||||
6 | annual emissions caps as described in this subsection. | ||||||
7 | This report shall include: | ||||||
8 | (i) an accounting of all greenhouse gas and | ||||||
9 | co-pollutant caps on, and actual emissions from, | ||||||
10 | individual plants demonstrating the Agency's | ||||||
11 | implementation of the requirements in this | ||||||
12 | subsection; and | ||||||
13 | (ii) an accounting of the aggregate declining | ||||||
14 | cap schedules demonstrating the adequacy of the | ||||||
15 | schedules to achieve net-zero emissions in the | ||||||
16 | electric sector by 2030, and any changes to the | ||||||
17 | schedules. | ||||||
18 | In addition to the information required under | ||||||
19 | items (i) and (ii), the 2025 report shall include a | ||||||
20 | review of the Agency's rules regulating annual | ||||||
21 | greenhouse gas pollution and co-pollutant caps in | ||||||
22 | light of projected emissions for the remaining years | ||||||
23 | until 2030 and demonstrate the adequacy of its rules | ||||||
24 | and policies to achieve net-zero emissions in the | ||||||
25 | electric sector by 2030. Should the Agency conclude | ||||||
26 | its current rules and policies are insufficient to |
| |||||||
| |||||||
1 | eliminate emissions from all fossil fuel-powered | ||||||
2 | electric generating units by January 1, 2030 and | ||||||
3 | comply with all other requirements in this Section, it | ||||||
4 | shall initiate a rulemaking no later than 180 days | ||||||
5 | from reaching this conclusion amending its rules to do | ||||||
6 | so. | ||||||
7 | before
September 30, 2004, but not before September 30, 2003, | ||||||
8 | issue to the House and
Senate Committees on Environment and | ||||||
9 | Energy findings that address the potential
need for the | ||||||
10 | control or reduction of emissions from fossil fuel-fired | ||||||
11 | electric
generating plants, including the following | ||||||
12 | provisions:
| ||||||
13 | (1) reduction of nitrogen oxide emissions, as | ||||||
14 | appropriate, with
consideration of maximum annual | ||||||
15 | emissions rate limits or establishment of an
emissions | ||||||
16 | trading program and with consideration of the developments | ||||||
17 | in federal
law and
regulations that may affect any State | ||||||
18 | action, prior to making final decisions
in Illinois;
| ||||||
19 | (2) reduction of sulfur dioxide emissions, as | ||||||
20 | appropriate, with
consideration of maximum annual | ||||||
21 | emissions rate limits or establishment of an
emissions | ||||||
22 | trading program and with consideration of the developments | ||||||
23 | in federal
law and regulations that may affect any State | ||||||
24 | action, prior to making final
decisions in Illinois;
| ||||||
25 | (3) incentives to promote renewable sources of energy | ||||||
26 | consistent with
item (8) of subsection (a) of this |
| |||||||
| |||||||
1 | Section;
| ||||||
2 | (4) reduction of mercury as appropriate, consideration | ||||||
3 | of
the availability of control technology, industry | ||||||
4 | practice requirements, or
incentive programs, or some | ||||||
5 | combination of these approaches that are sufficient
to | ||||||
6 | prevent unacceptable local impacts from individual | ||||||
7 | facilities and with
consideration of the developments in | ||||||
8 | federal law and
regulations that may affect any state | ||||||
9 | action, prior to making final decisions
in Illinois; and
| ||||||
10 | (5) establishment of a banking system, consistent with | ||||||
11 | the United States
Department of Energy's voluntary | ||||||
12 | reporting system, for certifying credits for
voluntary | ||||||
13 | offsets of emissions of greenhouse gases, as identified by | ||||||
14 | the United
States Environmental Protection Agency, or | ||||||
15 | other voluntary reductions of
greenhouse gases. Such | ||||||
16 | reduction efforts may include, but are not limited to,
| ||||||
17 | carbon sequestration, technology-based control measures, | ||||||
18 | energy efficiency
measures, and the use of renewable | ||||||
19 | energy sources.
| ||||||
20 | The Agency shall consider the impact on the public health, | ||||||
21 | considering also
energy supply, reliability and costs, the | ||||||
22 | role of renewable forms of energy,
and developments in federal | ||||||
23 | law and regulations that may affect any state
actions, prior | ||||||
24 | to making final decisions in Illinois.
| ||||||
25 | (c) Nothing in this Section is intended to or should be | ||||||
26 | interpreted in a
manner to limit or restrict the authority of |
| |||||||
| |||||||
1 | the Illinois Environmental
Protection Agency to propose, or | ||||||
2 | the Illinois Pollution Control Board to
adopt, any regulations | ||||||
3 | applicable or that may become applicable to the
facilities | ||||||
4 | covered by this Section that are required by federal law and | ||||||
5 | other Illinois laws .
| ||||||
6 | (d) The Agency may file proposed rules with the Board to | ||||||
7 | effectuate the goals set forth in subsection (b) its
findings | ||||||
8 | provided to the Senate Committee on Environment and Energy and | ||||||
9 | the
House Committee on Environment and Energy in accordance | ||||||
10 | with subsection (b) of
this Section. Any such proposal shall | ||||||
11 | not be submitted sooner than 90 days
after the issuance of the | ||||||
12 | findings provided for in subsection (b) of this
Section . The | ||||||
13 | Board shall take action on any such proposal within one year of
| ||||||
14 | the Agency's filing of the proposed rules.
| ||||||
15 | (e) Enforcement. | ||||||
16 | (1) Any person may file with the Board a complaint, | ||||||
17 | following the procedures contained in subsection (d) of | ||||||
18 | Section 31 of this Act, against any person, the State of | ||||||
19 | Illinois, or any government official for failure to | ||||||
20 | perform any act or nondiscretionary duty under this | ||||||
21 | Section or for allegedly violating this Section, any rule | ||||||
22 | or regulation adopted under this Section, any permit or | ||||||
23 | term or condition of a permit related to this Section, or | ||||||
24 | any Board order issued pursuant to this Section. Any | ||||||
25 | person shall have standing in an action under this Section | ||||||
26 | before the Board. Any person may intervene as a party as a |
| |||||||
| |||||||
1 | matter of right in any legal action concerning this | ||||||
2 | Section, whichever the forum, if he or she is or may be | ||||||
3 | adversely affected by any failure to perform any act or | ||||||
4 | nondiscretionary duty under this Section or any alleged | ||||||
5 | violation of this Section, any rule or regulation adopted | ||||||
6 | under this Section, any permit or term or condition of a | ||||||
7 | permit, or any Board order, by any person, the State of | ||||||
8 | Illinois, or any government official. | ||||||
9 | (2) In an action brought pursuant to this Section, any | ||||||
10 | person may request, and the Board or court may grant, | ||||||
11 | injunctive relief, damages (including reasonable attorney | ||||||
12 | and expert witness fees), and any other remedy available | ||||||
13 | pursuant to Sections 33 or 42 of this Act. The Board or | ||||||
14 | court may, if a temporary restraining order or preliminary | ||||||
15 | injunction is sought, require the filing of a bond or | ||||||
16 | equivalent security in accordance with the Illinois Code | ||||||
17 | of Civil Procedure. | ||||||
18 | (3) No existing civil or criminal remedy shall be | ||||||
19 | excluded or impaired by this Section. This Section shall | ||||||
20 | apply only to those electrical generating units
that are | ||||||
21 | subject to the provisions of Subpart W of Part 217 of Title | ||||||
22 | 35 of
the Illinois Administrative Code, as promulgated by | ||||||
23 | the Illinois Pollution
Control Board on December 21, 2000.
| ||||||
24 | (Source: P.A. 92-12, eff. 7-1-01; 92-279, eff. 8-7-01.)
| ||||||
25 | (415 ILCS 5/9.18 new) |
| |||||||
| |||||||
1 | Sec. 9.18. Energy community reinvestment fee. | ||||||
2 | (a) As used in this Section: | ||||||
3 | "Carbon dioxide equivalent" means a unit of measure | ||||||
4 | denoting the amount of emissions from a greenhouse gas, | ||||||
5 | expressed as the amount of carbon dioxide by weight that | ||||||
6 | produces the same global warming impact. | ||||||
7 | "Fossil fuel generating plant" means an electric | ||||||
8 | generating unit or a co-generating unit that produces | ||||||
9 | electricity using fossil fuels. | ||||||
10 | "Payment period" means the three-month period of time | ||||||
11 | during which emissions are measured for the purpose of | ||||||
12 | quarterly fee calculation. | ||||||
13 | (b) The General Assembly finds and declares that: | ||||||
14 | (1) the negative effects of fossil fuel-powered | ||||||
15 | electric generating units on human health, environmental | ||||||
16 | quality, and the climate of our planet require Illinois to | ||||||
17 | swiftly retire all such plants and shift to 100% renewable | ||||||
18 | energy; | ||||||
19 | (2) communities located near fossil fuel-powered | ||||||
20 | electric generating units have experienced these health | ||||||
21 | and environmental impacts most acutely; | ||||||
22 | (3) communities located near fossil fuel-powered | ||||||
23 | electric generating units will also experience economic | ||||||
24 | challenges as these plants retire; | ||||||
25 | (4) the assessment of a fee on the emissions of fossil | ||||||
26 | fuel generating plants will lower the exposure of |
| |||||||
| |||||||
1 | surrounding communities to harmful air pollutants by | ||||||
2 | providing incentive for fossil fuel generating plants to | ||||||
3 | reduce emissions; | ||||||
4 | (5) it is in the public interest that communities | ||||||
5 | located near fossil fuel-fired electric generating plants | ||||||
6 | should receive support in the form of economic | ||||||
7 | reinvestment, as recompense for the negative impacts of | ||||||
8 | the operation of fossil fuel-fired electric generating | ||||||
9 | plants, to invest in clean energy developments that reduce | ||||||
10 | the cumulative impacts of air pollution thus protecting | ||||||
11 | the public health, and as a means for creating new | ||||||
12 | economic growth and opportunity which is needed when the | ||||||
13 | plants retire; and | ||||||
14 | (6) this support should be paid for by the owners and | ||||||
15 | operators of fossil fuel-fired electric generating plants, | ||||||
16 | the operation of which caused harm to the surrounding | ||||||
17 | communities. | ||||||
18 | (c) Calculation of the Energy Community Reinvestment Fee. | ||||||
19 | The Agency shall establish procedures for the collection of | ||||||
20 | energy community reinvestment fees. Energy community | ||||||
21 | reinvestment fees shall be paid at least quarterly (once every | ||||||
22 | 3 months) by owners of all fossil fuel generating plants in | ||||||
23 | Illinois, based on the share of each plant's contribution to | ||||||
24 | the total amount of air pollution emitted by all fossil fuel | ||||||
25 | generating plants in that payment period, as determined by the | ||||||
26 | Agency and described in this subsection (c). |
| |||||||
| |||||||
1 | (1) Pollution Calculation. The energy community | ||||||
2 | reinvestment fee shall be calculated to reflect the | ||||||
3 | pollution burden from fossil fuel generating plants, based | ||||||
4 | on the total emissions of greenhouse gases. The fee shall | ||||||
5 | be calculated based solely on emissions of carbon dioxide, | ||||||
6 | methane, and nitrous oxide measured in carbon dioxide | ||||||
7 | equivalent tons. The exclusive use of carbon dioxide, | ||||||
8 | methane, and nitrous oxide in the calculation of the fee | ||||||
9 | is designed to reflect the overall pollution impact from | ||||||
10 | each fossil fuel generating plant by using these | ||||||
11 | pollutants as a proximate measurement of overall | ||||||
12 | emissions. | ||||||
13 | (2) Fee Calculation. The Agency shall calculate the | ||||||
14 | fee owed by each fossil fuel generating plant owner for | ||||||
15 | each payment period by dividing (A) the total emissions of | ||||||
16 | carbon dioxide equivalents in tons by each plant as | ||||||
17 | described under paragraph (1) of this subsection (c) by | ||||||
18 | (B) the total emissions of carbon dioxide equivalents in | ||||||
19 | tons of all fossil fuel generating plants subject to the | ||||||
20 | energy community reinvestment fee, and multiplying that | ||||||
21 | figure by (C) the portion of the annual revenue | ||||||
22 | requirements, established in subsection (d) of Section | ||||||
23 | 20-70 of the Energy Community Reinvestment Act, for that | ||||||
24 | payment period. | ||||||
25 | (3) Right to Fee Reduction. The owner of each plant | ||||||
26 | liable to pay the energy community reinvestment fee shall |
| |||||||
| |||||||
1 | have the right to reduce its liability based on | ||||||
2 | electricity production as described in this paragraph (3). | ||||||
3 | If requested, the total amount owed each payment period | ||||||
4 | for any plant shall be no greater than the total amount of | ||||||
5 | kilowatt hours of electricity produced by the plant during | ||||||
6 | the payment period multiplied by one cent per kilowatt | ||||||
7 | hour, adjusted for inflation from the year this Act takes | ||||||
8 | effect. Upon request by a plant owner the Agency shall | ||||||
9 | adjust the total amount owed for each payment period by | ||||||
10 | the amount necessary to reflect a maximum cost calculated | ||||||
11 | based on electricity production. | ||||||
12 | (4) Notification by the Agency. The first payment | ||||||
13 | period shall begin June 1, 2021. No later than September | ||||||
14 | 1, 2021, and every 3 months thereafter on the first of the | ||||||
15 | month, the Agency shall notify each fossil fuel generating | ||||||
16 | plant owner of the fee calculated pursuant to paragraph | ||||||
17 | (2) of this subsection (c) for the quarterly period just | ||||||
18 | concluded. | ||||||
19 | (5) Fee Collection. Plant owners shall remit payment | ||||||
20 | of their fee to the Agency within 30 days after the close | ||||||
21 | of each payment period, as established by the Agency. | ||||||
22 | Funds collected from the energy community reinvestment fee | ||||||
23 | shall be deposited into the Energy Community Reinvestment | ||||||
24 | Fund. | ||||||
25 | (d) Clean Energy Empowerment Zone Task Force involvement. | ||||||
26 | If the Agency receives notification from the Department of |
| |||||||
| |||||||
1 | Commerce and Economic Opportunity that a plant owner has | ||||||
2 | failed to engage productively in stakeholder meetings and with | ||||||
3 | Clean Energy Empowerment Zone Task Forces, as described in the | ||||||
4 | Energy Community Reinvestment Act, an enforcement action may | ||||||
5 | be brought under Section 31 of this Act. In addition to any | ||||||
6 | other relief that may be obtained as part of the enforcement | ||||||
7 | action, the Agency may seek to recover the avoided engagement | ||||||
8 | fees. The avoided engagement fees shall be calculated as | ||||||
9 | double the amount that is owed by the plant owner under | ||||||
10 | subsection (c) for the current payment period, and subsequent | ||||||
11 | payment periods, until the Department of Commerce and Economic | ||||||
12 | Opportunity sends notification to the Agency that the plant | ||||||
13 | owner is in compliance with the stakeholder engagement | ||||||
14 | requirements of the Energy Community Reinvestment Act. Avoided | ||||||
15 | engagement fees (which, for clarity, are in addition to fees | ||||||
16 | collected under subsection (c)) shall be deposited into the | ||||||
17 | Energy Community Reinvestment Fund to be directed solely to | ||||||
18 | support the local community's own planning efforts and | ||||||
19 | investments, and the Agency shall transmit a notification to | ||||||
20 | the Department of Commerce and Economic Opportunity of the | ||||||
21 | amount collected, and the plant owner responsible. | ||||||
22 | (e) If a plant owner subject to a fee under this Section | ||||||
23 | fails to pay the fee within 90 days after its due date, or | ||||||
24 | makes the fee payment from an account with insufficient funds | ||||||
25 | to cover the amount of the fee payment, the Agency shall notify | ||||||
26 | the plant owner of the failure to pay the fee. If the plant |
| |||||||
| |||||||
1 | owner fails to pay the fee within 60 days after such | ||||||
2 | notification, the Agency may, by written notice, immediately | ||||||
3 | revoke the air pollution operating permit. Failure of the | ||||||
4 | Agency to notify the plant owner of failure to pay a fee due | ||||||
5 | under this Section, or the payment of the fee from an account | ||||||
6 | with insufficient funds to cover the amount of the fee | ||||||
7 | payment, does not excuse or alter the duty of the plant owner | ||||||
8 | to comply with the provisions of this Section. | ||||||
9 | (f) No later than November 30 of each year, the Agency | ||||||
10 | shall submit a report to the Department of Commerce and | ||||||
11 | Economic Opportunity describing the amount of fees collected | ||||||
12 | from each fossil fuel-powered electric generating unit, the | ||||||
13 | status of any delinquencies, and the total amount expected to | ||||||
14 | be collected. | ||||||
15 | (g) Nothing in this Section shall be interpreted to mean | ||||||
16 | that the sum owed by each fossil fuel generating plant due to | ||||||
17 | the energy community reinvestment fee is equal to or greater | ||||||
18 | than the financial valuation of the total harm created by air | ||||||
19 | pollution from each plant. | ||||||
20 | (h) Enforcement. | ||||||
21 | (1) Any person may file with the Board a complaint, | ||||||
22 | following the procedures contained in subsection (d) of | ||||||
23 | Section 31 of this Act, against any person, the State of | ||||||
24 | Illinois, or any government official for failure to | ||||||
25 | perform any act or nondiscretionary duty under this | ||||||
26 | Section or for allegedly violating this Section, any rule |
| |||||||
| |||||||
1 | or regulation adopted under this Section, any permit or | ||||||
2 | term or condition of a permit related to this Section, or | ||||||
3 | any Board order issued pursuant to this Section. Any | ||||||
4 | person shall have standing in an action under this Section | ||||||
5 | before the Board. Any person may intervene as a party as a | ||||||
6 | matter of right in any legal action concerning this | ||||||
7 | Section, whichever the forum, if he or she is or may be | ||||||
8 | adversely affected by any failure to perform any act or | ||||||
9 | nondiscretionary duty under this Section or any alleged | ||||||
10 | violation of this Section, any rule or regulation adopted | ||||||
11 | under this Section, any permit or term or condition of a | ||||||
12 | permit, or any Board order, by any person, the State of | ||||||
13 | Illinois, or any government official. Any person with | ||||||
14 | standing to commence an action pursuant to subsection (e) | ||||||
15 | of Section 9.10 shall have standing to pursue enforcement | ||||||
16 | under this Section. | ||||||
17 | (2) In an action brought pursuant to this Section, any | ||||||
18 | person may request, and the Board or court may grant, | ||||||
19 | injunctive relief, damages (including reasonable attorney | ||||||
20 | and expert witness fees), and any other remedy available | ||||||
21 | pursuant to Sections 33 or 42 of this Act. The Board or | ||||||
22 | court may, if a temporary restraining order or preliminary | ||||||
23 | injunction is sought, require the filing of a bond or | ||||||
24 | equivalent security in accordance with the Illinois Code | ||||||
25 | of Civil Procedure. | ||||||
26 | (3) No existing civil or criminal remedy shall be |
| |||||||
| |||||||
1 | excluded or impaired by this Section. | ||||||
2 | (415 ILCS 5/9.15 rep.) | ||||||
3 | Section 90-50. The Environmental Protection Act is amended | ||||||
4 | by repealing Section 9.15. | ||||||
5 | Section 90-55. The Illinois Nuclear Facility Safety Act is | ||||||
6 | amended by adding Section 10 as follows: | ||||||
7 | (420 ILCS 10/10 new) | ||||||
8 | Sec. 10. Local government nuclear impact fees. | ||||||
9 | (a) As used in this Section: | ||||||
10 | "Local taxing body" means any unit of government that | ||||||
11 | assesses and collects property taxes. | ||||||
12 | "Qualifying Nuclear Facility" means a facility playing or | ||||||
13 | having played a direct role in the operation of commercial | ||||||
14 | nuclear power reactors for the generation of electricity; | ||||||
15 | including facilities used to process radioactive materials for | ||||||
16 | nuclear fuel fabrication, nuclear power reactors, high-level | ||||||
17 | and low-level radioactive waste treatment sites, and storage | ||||||
18 | and disposal locations. | ||||||
19 | "Qualifying Nuclear Operator" means any entity that | ||||||
20 | operates or has in the past 50 years operated a Qualifying | ||||||
21 | Nuclear Facility. | ||||||
22 | (b) Notwithstanding any other provision of law to the | ||||||
23 | contrary, any local taxing body may establish and collect an |
| |||||||
| |||||||
1 | annual Nuclear Impact Fee from Qualifying Nuclear Facility | ||||||
2 | within the boundaries of that local taxing body. | ||||||
3 | (c) The Nuclear Impact Fee shall be charged to the | ||||||
4 | Qualifying Nuclear Operator. | ||||||
5 | (d) The Nuclear Impact Fee may only be applied | ||||||
6 | prospectively on or after the effective date of this | ||||||
7 | amendatory Act of the 102nd General Assembly, and may not be | ||||||
8 | applied retroactively to a date before which this amendatory | ||||||
9 | Act is passed. | ||||||
10 | (e) The Nuclear Impact Fee permission granted to local | ||||||
11 | taxing bodies under these rules shall expire separately for | ||||||
12 | each individual local taxing body. That date of expiration of | ||||||
13 | the Nuclear Impact Fee permission for each local taxing body | ||||||
14 | shall be either exactly 30 years after the effective date of | ||||||
15 | this amendatory Act of the 102nd General Assembly, or 10 years | ||||||
16 | following the permanent shutdown of the Qualifying Nuclear | ||||||
17 | Facility from which the local taxing body collected property | ||||||
18 | taxes, whichever date is later. | ||||||
19 | (f) In any calendar year, a local taxing body may not | ||||||
20 | impose a Nuclear Impact Fee that exceeds 25% of the average | ||||||
21 | annual amount of property taxes, or payments in lieu of taxes, | ||||||
22 | paid to that local taxing body by the Qualifying Nuclear | ||||||
23 | Facility over the most recent 5-year period that the | ||||||
24 | Qualifying Nuclear Facility has been operational. | ||||||
25 | (g) Any failure by the Qualifying Nuclear Operator to pay | ||||||
26 | a Nuclear Impact Fee within 180 days after the fee payment |
| |||||||
| |||||||
1 | deadline shall be deemed a failure to comply, and shall | ||||||
2 | automatically require the Qualifying Nuclear Operator to pay | ||||||
3 | the Local Entity double the otherwise-allowable property | ||||||
4 | taxes, up to 50% of the average annual amount of property taxes | ||||||
5 | paid over the most recent 5-year period that the Qualifying | ||||||
6 | Nuclear Facility was operational. | ||||||
7 | (h) To establish a Nuclear Impact Fee, the local taxing | ||||||
8 | body shall adopt a resolution or ordinance describing the | ||||||
9 | public need for economic transition, the annual amount of the | ||||||
10 | fee, the Qualifying Nuclear Facility, the Qualifying Nuclear | ||||||
11 | Operator to be assessed, and a description of projected | ||||||
12 | expenses for the fee for the period the fee is in effect. The | ||||||
13 | local taxing body shall conduct a public hearing before | ||||||
14 | adopting a resolution or ordinance imposing a Nuclear Impact | ||||||
15 | Fee permitted under this Section. The hearing shall be held | ||||||
16 | within the boundaries of the local taxing body. Public notice | ||||||
17 | of the time, place, and purpose of the hearing shall be given | ||||||
18 | at least 10 business days before the date of the hearing. | ||||||
19 | (i) A local taxing body shall include in its resolution or | ||||||
20 | ordinance the method for collection of payment of a Nuclear | ||||||
21 | Impact Fee. A county which has adopted a resolution or | ||||||
22 | ordinance imposing a Nuclear Impact Fee may collect such Fees | ||||||
23 | in the regular property tax bills of the county. The county | ||||||
24 | collector of the county in which a local taxing body has | ||||||
25 | adopted a resolution or ordinance imposing a Nuclear Impact | ||||||
26 | Fee may bill and collect such Fees with the regular property |
| |||||||
| |||||||
1 | tax bills of the county if requested by a local taxing body | ||||||
2 | within its jurisdiction. | ||||||
3 | (j) The revenue collected through the Nuclear Impact Fee | ||||||
4 | by a local taxing body shall only be used for the purposes of | ||||||
5 | supporting the "economic transition" of local communities that | ||||||
6 | have experienced the closure of a Qualifying Nuclear Facility | ||||||
7 | or will experience a Qualifying Nuclear Facility in the | ||||||
8 | future. "Economic transition" uses may include tax base | ||||||
9 | replacement, workforce development, public school funding, | ||||||
10 | essential public service, or sustainable infrastructure | ||||||
11 | projects. | ||||||
12 | (k) The revenue collected under this Section shall not be | ||||||
13 | used either directly or indirectly to aid, subsidize, enact, | ||||||
14 | support, or otherwise enable investment in any electricity | ||||||
15 | generation infrastructure that processes or can process fossil | ||||||
16 | or nuclear fuels. | ||||||
17 | (l) No later than November 30 of each calendar year, each | ||||||
18 | local taxing body collecting a Nuclear Impact Fee pursuant to | ||||||
19 | this Section shall remit to the Department of Revenue for | ||||||
20 | deposit in the Energy Community Reinvestment Fund 20% of the | ||||||
21 | annual revenue collection from any Nuclear Impact Fees in | ||||||
22 | order to help fund state programs that support economic | ||||||
23 | transition and workforce development, showing such information | ||||||
24 | as the Department of Revenue may reasonably require. | ||||||
25 | (m) No later than November 30 of each calendar year, each | ||||||
26 | local taxing body collecting a Nuclear Impact Fee pursuant to |
| |||||||
| |||||||
1 | this Section shall submit to the Department of Commerce and | ||||||
2 | Economic Opportunity and the Agency a report detailing the | ||||||
3 | total amount of funds collected from any Nuclear Impact Fees, | ||||||
4 | the planned expenditure of the funds, the coordination of | ||||||
5 | expenditure with any Department economic transition activities | ||||||
6 | and investments, copies of any adoption of or amendments to | ||||||
7 | resolutions or ordinances impacting the assessment of Nuclear | ||||||
8 | Impact Fees, and a certification of the remittance of the | ||||||
9 | State portion of the funds collected to the Department of | ||||||
10 | Revenue. | ||||||
11 | (n) The Department of Commerce and Economic Opportunity | ||||||
12 | may establish such rules as it deems necessary to implement | ||||||
13 | this Section. | ||||||
14 | Section 90-60. The Prevailing Wage Act is amended by | ||||||
15 | adding Section 3.3 as follows: | ||||||
16 | (820 ILCS 130/3.3 new) | ||||||
17 | Sec. 3.3. Job classifications. The Department of Labor | ||||||
18 | must, within 60 days after the effective date of this | ||||||
19 | amendatory Act of the 102nd General Assembly, identify job | ||||||
20 | categories for laborers, mechanics, and other workers employed | ||||||
21 | in the provision of programs created or altered by this Act, | ||||||
22 | for which the Department has not already set a prevailing rate | ||||||
23 | of wages. | ||||||
24 | The Department of Labor must, within 240 days after the |
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1 | effective date of this amendatory Act of the 102nd General | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Assembly, set a prevailing rate of wages for each identified | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | job category. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Article 99. Nonacceleration; Effective Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Section 99-95. No acceleration or delay. Where this Act | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | makes changes in a statute that is represented in this Act by | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | text that is not yet or no longer in effect (for example, a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Section represented by multiple versions), the use of that | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | text does not accelerate or delay the taking effect of (i) the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | changes made by this Act or (ii) provisions derived from any | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | other Public Act.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | Section 99-99. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | becoming law.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||