HB0804 EngrossedLRB102 10881 SPS 16211 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
7vehicle for expanding equitable access to public health,
8safety, a cleaner environment, quality jobs, economic
9opportunity, and wealth-building, particularly in economically
10disadvantaged communities and communities of black,
11indigenous, and people of color that have had to bear the
12disproportionate burden of dirty fossil fuel pollution.
13    (b) Placing Illinois on a path to 100% renewable energy is
14vital to a clean energy future. To bring this vision to
15fruition, our energy policy must prioritize a just transition
16that incentivizes renewable development and other
17carbon-reducing policies, such as energy efficiency,
18beneficial electrification, and peak demand reduction, while
19ensuring that the benefits and opportunities of a carbon-free
20future are accessible in economically disadvantaged
21communities, environmental justice communities, and
22communities of black, indigenous, and people of color.
23    (c) In the wake of federal reversals on climate action,

 

 

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1the State of Illinois should pursue immediate action on
2policies that will ensure a just and responsible phase out of
3fossil fuels from the power sector to reduce harmful emissions
4from Illinois power plants, support power plant communities
5and workers, and allow the clean energy economy to continue
6growing in every corner of Illinois.
7    (d) Energy efficiency should form the basis of any robust
8clean energy policy. It is the cheapest clean energy resource,
9and efficiency upgrades help customers manage their energy
10bills directly by reducing the energy they need, and
11indirectly by holding demand and prices down statewide.
12    (e) The transportation sector is now the leading source of
13carbon pollution in Illinois, responsible for roughly
14one-third of all carbon emissions. The State of Illinois
15should set forth an ambitious goal to remove the equivalent of
16more than 1,000,000 gasoline and diesel-powered vehicles from
17our roads by quickly implementing new policies that expand
18access to transit, promote walking and biking mobility, and
19increase electric vehicle adoption. If managed appropriately,
20electric vehicle adoption will drastically reduce emissions
21from transportation, and could save Illinois residents
22billions of dollars.
23    (f) In addition to better air quality and a safer climate,
24Illinois residents who do not use electric vehicles also
25benefit from greater adoption through lower electric bills
26resulting from the greater use of the electric grid during

 

 

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1off-peak hours.
2    (g) The State of Illinois should set forth an ambitious
3goal to transition all vehicle fleets operated by or on behalf
4of public agencies to full electric power. The transition to
5zero-emission fleets should be leveraged to promote increased
6investment in domestic manufacturing capacity within the
7emerging electric vehicle industry. The resulting new,
8high-skilled production jobs can also provide pathways into
9the middle class for racially, economically, and
10geographically marginalized communities. When procuring
11electric vehicles, public agencies shall use high-road
12economic development standards, like the U.S. Employment Plan.
13By using the U.S. Employment Plan or a Local Employment Plan,
14public agencies will incentivize electric vehicle companies to
15create and retain high-skilled manufacturing jobs with living
16wages and benefits; invest in domestic manufacturing
17facilities; and propose plans to recruit, train, and hire
18workers who face structural barriers to family-sustaining jobs
19and career pathways.
20    (h) Energy storage, such as batteries, can provide many
21services to the electricity grid that benefit the grid,
22including managing (or shaving) peak load, frequency
23regulation, voltage support, reserve capacity, and black-start
24capability. If that storage facilitates greater use of
25renewables, it can allow for more clean energy to be
26accessible, reduce pollution, and provide multiple benefits.

 

 

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1    (i) Illinois needs to adopt a broad-based policy approach
2to decarbonize Illinois' electric sector (including
3electricity production and consumption) in a just and
4equitable manner that puts our State on track to phase out
5carbon dioxide emitting power plants by 2030.
6    (j) Illinois' policy approach must ensure the reduction of
7co-pollutant emissions that cause serious local health
8impacts, prioritizing environmental justice communities near
9power plants.
10    (k) As we decarbonize Illinois' electric sector, Illinois
11must create new investment to stimulate the economic and
12environmental well-being of communities disproportionately
13impacted by the historical operation of, and recent or
14expected closures of, fossil fuel power plants and coal mining
15operations.
16    (l) On January 23, 2019, Governor Pritzker signed an
17executive order committing Illinois as a signatory to the U.S.
18Climate Alliance to reduce state-based greenhouse gas
19emissions consistent with the 2015 Paris Agreement. This
20commitment identifies natural and working lands as a principal
21initiative to meet the associated carbon emissions reduction
22targets for Illinois. As Illinois works to reduce carbon
23emissions from the power generation and transportation
24sectors, Illinois can also lead the nation in recognizing the
25benefits of nature as a tool to both mitigate and adapt to
26climate 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
4the Clean Jobs, Workforce and Contractor Equity Act.
 
5    Section 5-105. Findings.
6    (a) The General Assembly finds that the clean energy jobs
7sector, including renewables, energy efficiency, energy
8storage, and other related fields, is a growing sector in the
9State of Illinois and that programs to support a growing
10workforce and robust businesses in this sector would benefit
11from a centralized structure for community input and oversight
12and regional program administration to reduce costs, support
13knowledge sharing, and facilitate access to the programs.
14    (b) The General Assembly finds that the State of Illinois
15should build upon the success of the Future Energy Jobs Act and
16the Illinois Solar for All program by further expanding
17statewide equitable access to quality training, jobs, and
18economic opportunities across the entire clean energy sector
19in and throughout Illinois, including solar, wind, energy
20efficiency, transportation electrification, and other related
21clean energy industries, especially for members of the
22following communities across the State to enter and complete

 

 

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1the career pipeline for clean energy jobs, with the goal of
2serving all of the following groups distributed across the
3network: (i) low-income persons and families; (ii) persons
4residing in environmental justice communities; (iii) BIPOC
5persons; (iv) justice-involved persons; (v) persons who are or
6were in the child welfare system; (vi) energy workers; (vii)
7members of any of these groups who are also women,
8transgender, or gender nonconforming persons; and (viii)
9members of any of these groups who are also youth, especially
10those who have had to bear the disproportionate burden of
11dirty fossil fuel pollution. The General Assembly further
12finds that the programs included in the Clean Jobs, Workforce
13and Contractor Equity Act are essential to equitable,
14statewide access to quality training, jobs, and economic
15opportunities across the clean energy sector.
16    (c) The General Assembly finds that the State of Illinois
17should build upon the success of the Future Energy Jobs Act and
18the Illinois Solar for All program by ensuring small, BIPOC
19clean energy businesses and contractors have equitable access
20to economic opportunities, including new clean energy jobs and
21investment created by the growing clean energy sector in
22Illinois.
23    (d) The General Assembly finds that serious challenges are
24posed for Illinois small business owners due to income and
25wealth disparities, that market barriers disproportionately
26impact BIPOC contractors and small business owners, obtaining

 

 

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1certifications and program qualifications are an essential
2part of doing business in the clean energy economy and that
3discriminatory lending policies limit these businesses' access
4to 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
25sector, including renewables, energy efficiency, energy
26storage, and other related fields, is a growing sector in the

 

 

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1State of Illinois, that returning residents will be well
2served by considering employment in this field, and that the
3residents of the State of Illinois will benefit from the
4continued growth of jobs in this sector.
 
5    Section 5-110. Power of the Department. The Department may
6adopt such rules as the Director deems necessary to carry out
7the purposes of this Act.
 
8    Section 5-115. Definitions. As used in this Act:
9    "Advisory Board" means the Equity and Empowerment in Clean
10Energy Advisory Board as established in this Act.
11    "Black, indigenous, and people of color" and "BIPOC" are
12defined as people who are members of the groups described in
13subparagraphs (a) through (e) of paragraph (A) of subsection
14(1) of Section 2 of the Business Enterprise for Minorities,
15Women, and Persons with Disabilities Act.
16    "Clean Energy Jobs" means jobs in the solar energy, wind
17energy, energy efficiency, solar thermal, geothermal, and
18electric vehicle industries, and other renewable energy
19industries, including related industries that manufacture,
20develop, build, maintain, or provide ancillary services to
21renewable energy resources or energy efficiency products or
22services, including the manufacture and installation of
23healthier building materials that contain fewer hazardous
24chemicals. "Clean Energy Jobs" include administrative, sales,

 

 

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1and other support functions within these industries.
2    "Community-based organization" means an organization in
3which:
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
16Opportunity, unless the text solely specifies a particular
17Department.
18    "Director" means the director of the Department of
19Commerce and Economic Opportunity.
20    "Energy Efficiency" has the meaning set forth in Section
211-10 of the Illinois Power Agency Act.
22    "Energy worker" has the meaning set forth in Section 20-10
23of the Energy Community Reinvestment Act.
24    "Environmental Justice Community" means the definition of
25that term based on existing methodologies and findings, used
26as may be updated by the Illinois Power Agency and its program

 

 

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1administrator in the Illinois Solar for All program.
2    "Low-income" means persons and households whose income
3does not exceed 80% of the area median income, adjusted for
4family size and revised every 2 years.
5    "Primes Program Administrator" means the entity defined as
6such by Part 15 of this Act.
7    "Regional Administrator" means the entities selected
8according to Section 5-130 of this Act.
9    "Regional Primes Program Lead" means the entities defined
10as such by Part 15 of this Act.
11    "Renewable energy resources" has the meaning set forth in
12Section 1-10 of the Illinois Power Act.
 
13    Section 5-120. Purpose. The Equity and Empowerment in
14Clean Energy Advisory Board shall be established to advise and
15assist the Illinois Department of Commerce and Economic
16Opportunity in its efforts to administer the following
17programs as set forth in this Act: the Clean Jobs Workforce
18Hubs Program; the Expanding Clean Energy Entrepreneurship and
19Contractor Incubator Network Program; the Returning Residents
20Clean Jobs Training Program; and the Illinois Clean Energy
21Black, Indigenous, and People of Color Primes Contractor
22Accelerator. The Illinois Department of Commerce and Economic
23Opportunity shall contract with 3 Regional Administrators as
24described in this Part to assist in the implementation of
25several of these programs, and shall develop a system of

 

 

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1performance management and corrective action applicable to
2these programs.
 
3    Section 5-125. Equity and Empowerment in Clean Energy
4Advisory Board.
5    (a) Purpose. To ensure success and equity in the clean
6energy industry in Illinois, the General Assembly hereby
7creates an Equity and Empowerment in Clean Energy Advisory
8Board to oversee and advise the Department on the
9administration of the following programs set forth in this
10Act:
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
19support for and convene the Equity and Empowerment in Clean
20Energy Advisory Board within 90 days after the effective date
21of this Act. The Department shall convene at least one meeting
22of the Advisory Board every quarter. All meetings shall be
23accessible, with rotating locations, call-in and
24videoconference options, and materials and agendas circulated
25well in advance, and there shall also be opportunities for

 

 

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1input outside of meetings from those with limited capacity and
2ability to attend, via one-on-one meetings, surveys, and calls
3subject 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
17the Advisory Board within 90 days after the effective date of
18this Act and shall appoint new Advisory Board members as
19members' terms expire or members leave the Board. Members of
20the Advisory Board shall serve without compensation, but may
21be reimbursed for their reasonable and necessary expenses
22incurred in performing their duties. The Department shall
23provide administrative support to the Advisory Board,
24including the selection of a Department staff member to serve
25as a Board Liaison between the Department and the Advisory
26Board. The Department shall appoint interim members to the

 

 

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1Advisory Board upon departures of members. The Advisory Board
2shall consist of the following 15 members that reflects the
3diversity 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
8reside in each of the North, Central, and Southern sections of
9Illinois. The terms of the initial members of the Advisory
10Board shall be such that 5 members have initial 3-year terms, 5
11members have initial 2-year terms, and 5 members have initial
121-year terms. After initial terms are complete, all members of
13the Advisory Board shall have 3-year terms. A majority of
14Board members shall constitute a quorum.
 
15    Section 5-130. Regional administrators.
16    (a) Within 180 days after the effective date of this Act,
17the Department shall convene and complete a comprehensive
18stakeholder process that includes, at minimum, representatives
19from community-based organizations in environmental justice
20communities, community-based organizations serving low-income
21persons and families, community-based organizations serving
22energy workers, and labor unions. The stakeholder process must
23include measures for process transparency to be posted on the
24Department website or initial program websites, such as a
25timeline for key decision points, detailed criteria

 

 

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1implementing requirements specified in subsection (b) of this
2Section, and identification of opportunities for stakeholder
3participation and review. After completing the stakeholder
4process, the Department, in consultation with and with the
5approval of the Advisory Board, shall select 3 Regional
6Administrators to administer and coordinate the work of the
7following 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
14Administrators: one Regional Administrator for coordination of
15the work in the Northern Illinois Program Delivery Area, one
16Regional Administrator selected for coordination of the work
17in the Central Illinois Program Delivery Area, and one
18Regional Administrator selected for coordination of the work
19in the Southern Illinois Program Delivery Area. For purposes
20of 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
15capabilities, experience, and knowledge related to program
16development and fiscal management; cultural and language
17competency needed to be effective in their respective
18communities to be served; expertise in working in and with
19BIPOC and environmental justice communities; knowledge and
20experience in working with providers of clean energy jobs; and
21awareness of industry trends and activities, workforce
22development best practices, regional workforce development
23needs, regional and industry employers, and community
24development. The Regional Administrators shall demonstrate a
25track record of strong partnerships with community-based
26organizations.

 

 

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1    (d) The Regional Administrators shall work together to
2coordinate the programs listed in paragraphs (1) through (3)
3of subsection (a) to ensure execution, performance,
4partnerships, marketing, and program access across the State
5that is as consistent as possible while respecting regional
6differences. The Regional Administrators shall work with
7Program Administrators and partner community-based
8organizations in their respective regions and Program Delivery
9Areas to deliver these programs and shall establish mechanisms
10to fund these partner community-based organizations for their
11work on these programs. Each of the Regional Administrators
12shall convene the community-based organizations delivering
13program elements in their Program Delivery Areas for a meeting
14once per quarter, at minimum, as well as monthly calls, at
15minimum. Each year, the Department shall convene a meeting of
16the Regional Administrators, contracted community-based
17organizations, and subcontracted entities.
18    (e) The Department shall oversee the coordination
19undertaken by all 3 Regional Administrators to ensure
20high-quality and equivalent service provision statewide. The
21Department shall require, at minimum, monthly coordination
22meetings including the Department and all 3 Regional
23Administrators to develop joint planning processes and
24coordination mechanisms with each of the Regional
25Administrators and among the 3 Regional Administrators such
26that they are functioning effectively and delivering parallel

 

 

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1administration in their respective regions, and the Department
2shall also work to create joint planning opportunities and
3coordination mechanisms to enable the Regional Administrators
4to collaborate, particularly enabling the Regional
5Administrators to coordinate and collaborate to enhance
6program delivery within their respective program delivery
7areas.
8    (f) Regional Administrators shall present a regional
9status report consisting of, at minimum, the performance
10metrics detailed in the programs described in subsection (a)
11of this Section to the Advisory Board at each of its quarterly
12meetings.
13    (g) Regional Administrators shall take on additional
14duties related to the program administration as assigned by
15the Department.
 
16    Section 5-135. Corrective action.
17    (a) The Department shall maintain a performance management
18system to support the Primes Program Administrator, Regional
19administrators, and Regional Primes Program Leads in ensuring
20effective and high-quality implementation of the programs
21listed in Section 5-120 of this Part.
22    (b) If the Primes Program Administrator, a Regional
23Administrator, a Regional Primes Program Lead or contracted
24community-based organization or other vendor does not deliver
25contractually obligated program elements, objectives, or

 

 

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1outcomes, even after multiple corrective action plans have
2been implemented, the Department or, in the case of
3community-based organizations or other vendors, the Regional
4Administrator may place the organization on probationary
5status, or as needed, terminate their services. The Department
6shall develop procedures to enable Regional Administrators to
7procure expedited replacement contracts to avoid any resulting
8disruption to the affected programs.
9    (c) If the Primes Program Administrator, a Regional
10Administrator, a Regional Primes Program Lead or contracted
11community-based organization or other vendor does not deliver
12contractually obligated program elements, objectives, or
13outcomes after corrective action has been implemented, the
14Department may take additional corrective action, including,
15but not limited to, a legally binding dispute resolution
16process.
17    (d) The Department, Primes Program Administrator, and
18Regional Administrators shall develop uniform guidelines for
19minimum components of corrective action plans, and guidelines
20for when probationary status or termination is deemed
21warranted for the Primes, Program Administrator, Regional
22Administrators, a Regional Primes Program Lead, contracted
23community-based organizations or other vendors. The
24Department, Primes Program Administrator, and Regional
25Administrators, with input from the Advisory Board, shall
26develop a uniform, legally binding mechanism for dispute

 

 

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1resolution between contracted community-based organizations
2and their subcontracted entities to be implemented under the
3Primes Program Administrator, Regional Administrators or other
4identified mediator.
 
5    Section 5-140. Statewide program support lead. The
6Department may contract with an outside vendor to assist with
7program administration, contract management, management of
8Regional Administrators, or other functions, as needed.
 
9    Section 5-145. Agreements. All agreements entered into
10between the Department and entities for the purpose of
11implementing the programs listed in Section 5-120 of this Part
12shall contain provisions that provide for the implementation
13of this Act.
 
14    Section 5-150. Administration; rules. The Department shall
15administer this Act and shall adopt any rules necessary for
16that 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
20Program.
 

 

 

HB0804 Engrossed- 23 -LRB102 10881 SPS 16211 b

1    Section 5-510. Clean Jobs Workforce Hubs Network Program.
2    (a) The Department shall develop, and through Regional
3Program Administrators administer, the Clean Jobs Workforce
4Hubs Network Program to create a network of 16 Program
5delivery Hub Sites with program elements delivered by
6community-based organizations and their subcontractors
7geographically distributed across the State.
8    (b) The Program shall provide direct and sustained support
9to members of one or more of the following members of
10communities across the State to enter and complete the career
11pipeline for clean energy jobs, with the goal of serving all of
12the following groups distributed across the network: (i)
13low-income persons; (ii) persons residing in environmental
14justice communities; (iii) BIPOC persons; (iv)
15justice-involved persons; (v) persons who are or were in the
16child welfare system; (vi) energy workers; (vii) members of
17any of these groups who are also women, transgender, or gender
18nonconforming persons; and (viii) members of any of these
19groups 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

 

 

HB0804 Engrossed- 24 -LRB102 10881 SPS 16211 b

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
12Administrators, administer the Clean Jobs Workforce Hubs
13Network.
14    (b) The Clean Jobs Workforce Hubs Network shall be made up
15of 16 Program delivery Hub Sites geographically distributed
16across the State, including at least one Hub Site located in or
17near each of the following areas: Chicago (South Side),
18Chicago (Southwest Side), Waukegan, Rockford, Aurora, Joliet,
19Peoria, Champaign, Danville, Decatur, Carbondale, East St.
20Louis, and Alton. Three additional Hub Sites shall be
21determined by the Department within 240 days after the
22effective date of this Act based on a gap analysis identifying
23areas with high concentrations of low-income residents,
24environmental justice communities, and energy workers that are
25otherwise underserved by the other 13 Hub Sites, as well as

 

 

HB0804 Engrossed- 25 -LRB102 10881 SPS 16211 b

1review of advisory recommendations from the Advisory Board
2specified in subsection (d) of Section 5-520. One of the
3additional sites shall be located in the Northern Illinois
4Program Delivery Area covering Northern Illinois, one of the
5additional sites shall be located in the Central Illinois
6Program Delivery Area covering Central Illinois, and one of
7the additional sites shall be located in the Southern Illinois
8Program Delivery Area covering Southern Illinois as specified
9in Section 5-130 of Part 1 of this Act.
10    (c) Program elements at each Hub Site shall be provided by
11a local community-based organization that shall be initially
12competitively selected by the Department within 330 days after
13the effective date of this Act and shall be subsequently
14competitively selected by the Department every 5 years.
15Community-based organizations delivering program elements
16outlined in subsection (d) may provide all elements required
17or may subcontract to other entities for provision of portions
18of program elements, including, but not limited to,
19administrative soft and hard skills for program participants,
20delivery of specific training in the core curriculum, or
21provision of other support functions for program delivery
22compliance. The Department and the Regional Administrators,
23with input from the Advisory Board, shall develop uniform
24minimum contractual requirements for competitively selected
25community-based organizations to provide the Program, uniform
26minimum contractual requirements for all Program subcontracts,

 

 

HB0804 Engrossed- 26 -LRB102 10881 SPS 16211 b

1and uniform templates for requests for proposals for all
2Program subcontracts.
3    (d) The Clean Jobs Workforce Hubs Network shall provide
4all 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

 

 

HB0804 Engrossed- 27 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 28 -LRB102 10881 SPS 16211 b

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,
25the Department shall competitively select a community-based
26organization to assist with pre-Program launch public

 

 

HB0804 Engrossed- 29 -LRB102 10881 SPS 16211 b

1communications and stakeholder tracking, which shall begin
2within 120 days after the effective date of this Act and shall
3continue through Program launch. The Department may elect to
4initiate pre-Program communication of updates to the public
5between the effective date of this Act and competitive
6selection of a community-based organization to assist.
7Pre-Program launch communications and stakeholder tracking
8functions shall include, but are not limited to: (1)
9developing an initial email subscription list so that
10interested stakeholders and interested members of the public
11may sign up to receive email updates about the status of
12Program implementation, (2) develop an initial basic website
13including the initial email list subscription form and a page
14where public pre-Program updates shall be posted, (3) develop
15initial social media accounts where public pre-Program updates
16shall be posted, and (4) coordinate with the Department,
17Regional Administrators, and Advisory Board members to solicit
18information for the purposes of updating the public, as
19approved by the Department. Pre-Program updates shall include,
20but are not limited to, information about implementation
21timelines, selection of Hub Sites, selection of Advisory Board
22members, selection of Regional Administrators, selection of
23contracted organizations, updates from the Advisory Board, and
24other significant Program Administration updates. Pre-Program
25updates shall be disseminated to the public through the
26website, email list, and social media accounts no less

 

 

HB0804 Engrossed- 30 -LRB102 10881 SPS 16211 b

1frequently than once per month. Following Program launch, the
2Department shall either (A) assume direct fulfillment of all
3responsibilities of public communications and stakeholder
4tracking directly or (B) elect to continue to competitively
5select a community-based organization to continue these
6functions and develop all initial functions into ongoing
7Program functions. If the Department elects to continue to
8competitively contract these functions, the Department may
9either: (i) elect to extend the contract to the competitively
10selected community-based organization delivering these
11functions during the pre-Program launch period, and may do so
12for a period to be determined by the Department, but to not
13exceed 2 years following Program launch; or (ii) elect to
14competitively select another community-based organization to
15fulfill communications and stakeholder tracking functions. The
16Department shall subsequently competitively select a
17community-based organization to fulfill communications and
18stakeholder tracking functions every 2 years.
 
19    Section 5-520. Regional administrators.
20    (a) The Clean Jobs Workforce Network Hubs Program shall be
21administered by 3 Regional Administrators as described in
22Section 5-130 of Part 1 of this Act.
23    (b) The Advisory Board shall have the duties given to it by
24Part 1 of this Act as it relates to the Program. In addition,
25the Advisory Board shall provide recommendations to the

 

 

HB0804 Engrossed- 31 -LRB102 10881 SPS 16211 b

1Department to complement the gap analysis and selection of 3
2Primary Hub Sites as specified in Section 5-130 of Part 1 of
3this Act.
4    (c) The Department shall require submission of quarterly
5reports including program performance metrics by each Hub Site
6to the Regional Administrator of their Program Delivery Area,
7as specified in subsection (a) of Section 5-1015 of Part 10, in
8a time and manner as prescribed by the Department. Each
9Regional Administrator shall collect, track, and
10simultaneously submit quarterly reports to the Department and
11the members of the Advisory Board, including program
12performance metrics reported in a format that allows for
13review of the metrics both (i) for each individual Hub Site and
14(ii) aggregated by Program Delivery Area. Each Regional
15Administrator shall provide technical assistance to each
16individual Hub Site in their Program Delivery Area in building
17systems and capacity to collect data. Program Performance
18metrics include, but are not limited to, the following
19information collected for each Program trainee, where
20applicable:
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;

 

 

HB0804 Engrossed- 32 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 33 -LRB102 10881 SPS 16211 b

1program performance metrics provided under this subsection (c)
2available to the public on its website and on the Program
3website.
4    (d) Within 3 years after the effective date of this Act,
5and subsequently at least once every 3 years thereafter, the
6Department shall select an independent evaluator to review and
7prepare a report on the performance of the Program and the
8Regional Administrators. The evaluation shall be based on, but
9not limited to, the quantitative and qualitative program
10performance metrics specified in subsection (g) and objective
11criteria developed through a comprehensive public stakeholder
12process. In preparing the report, the independent evaluator
13shall include participation and recommendations from persons
14including, but not limited to, members of the Advisory Board,
15additional Program participants who are not already serving as
16members of the Advisory Board, and additional Program
17stakeholders including organizations in environmental justice
18communities and organizations serving low-income persons and
19families. The report shall include a summary of the evaluation
20of the Program, as well as an appendix including a review of
21submitted recommendations and a compilation of reported
22program performance metrics for the period covered by the
23evaluation. The report shall be posted publicly on the
24Department's website and the Program website, and shall be
25used, as needed, to improve implementation of the Program.
26Between evaluation due dates, the Department shall maintain

 

 

HB0804 Engrossed- 34 -LRB102 10881 SPS 16211 b

1the necessary records and information required to satisfy the
2evaluation requirements.
 
3    Section 5-525. Clean jobs curriculum.
4    (a) Within 90 days after the effective date of this Act,
5the Department shall convene a comprehensive stakeholder
6process that includes representatives from the Illinois State
7Board of Education, the Illinois Community College Board, the
8Department of Labor, community-based organizations, workforce
9development providers, labor unions, building trades,
10educational institutions, residents of BIPOC and low-income
11communities, residents of environmental justice communities,
12as well as clean energy businesses, nonprofit organizations,
13worker-owned cooperatives, other groups that provide clean
14energy jobs opportunities, and other participants to identify
15the career pathways and training curriculum needed to prepare
16workers to enter clean energy jobs as defined in Section 5-115
17and 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;

 

 

HB0804 Engrossed- 35 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 36 -LRB102 10881 SPS 16211 b

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
10convened, the Department shall publish a report that includes
11the findings, recommendations, and core curriculum identified
12by the stakeholder group and shall post a copy of the report on
13its public website. The Department shall convene the process
14described to update and modify the recommended curriculum
15every 3 years to ensure the curriculum contents are current to
16the evolving clean energy industries, practices, and
17technologies.
18    (c) Organizations that receive funding to provide training
19under the Clean Jobs Workforce Hubs Network Program,
20including, but not limited to, community-based and labor-based
21training providers, and educational institutions must use the
22core curriculum that is developed under this Section.
 
23    Section 5-530. Funding. To provide direct, sustained
24support for the Program, the Department shall be responsible
25for overseeing the development and implementation of the

 

 

HB0804 Engrossed- 37 -LRB102 10881 SPS 16211 b

1Program, and each year shall, subject to appropriation,
2allocate at least $1,000,000 to each of the 16 community-based
3organizations providing program elements at the 16 Hub Sites
4described in this Act, including for the purposes of providing
5Program elements through subcontracted entities. Funding of
6$26,000,000 for the Program shall be made available from the
7Energy Community Reinvestment Fund.
 
8    Section 5-535. Administrative review. All final
9administrative decisions, including, but not limited to,
10funding allocation and rules issued, made by the Department
11under this Part are subject to judicial review under the
12Administrative Review Law and its rules. No action may be
13commenced under this Section prior to 60 days after the
14complainant has given notice in writing of the action to the
15Department.
 
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
20Entrepreneurship and Contractor Incubator Network Program.
 
21    Section 5-1005. Expanding Clean Energy Entrepreneurship
22and Contractor Incubator Network Program.

 

 

HB0804 Engrossed- 38 -LRB102 10881 SPS 16211 b

1    (a) The Department shall develop and, through Regional
2Program Administrators, administer the Expanding Clean Energy
3Entrepreneurship and Contractor Incubator Network Program to
4create a network of 16 Program delivery Hub Sites with program
5elements delivered by community-based organizations and their
6subcontractors geographically distributed across the State.
7    (b) The Program shall provide direct and sustained support
8for the development and growth of BIPOC participant
9contractors and provide the needed resources for entities to
10be able to effectively compete for, gain, and execute clean
11energy-related projects that create clean energy jobs. The
12Program shall provide direct and sustained support for a
13portion of disadvantaged BIPOC contractors in the Program who
14are previous graduates of the Clean Jobs Workforce Hubs
15Network Program to further develop wealth-building
16opportunities, and career paths in clean energy contracting
17and the creation of clean energy jobs.
 
18    Section 5-1010. Expanding Clean Energy Entrepreneurship
19and Contractor Incubator Network.
20    (a) The Department shall develop and, through Regional
21Program Administrators, administer the Expanding Clean Energy
22Entrepreneurship and Contractor Incubators Network.
23    (b) The Clean Energy Entrepreneurship and Contractor
24Incubator Network Program shall be made up of 16 Program
25delivery Hub Sites geographically distributed across the

 

 

HB0804 Engrossed- 39 -LRB102 10881 SPS 16211 b

1State, including at least one Hub Site located in or near each
2of the following areas: Chicago (South Side), Chicago
3(Southwest Side), Waukegan, Rockford, Aurora, Joliet, Peoria,
4Champaign, Danville, Decatur, Carbondale, East St. Louis, and
5Alton. Three additional sites shall be determined by the
6Department within 240 days after the effective date of this
7Act based on a gap analysis identifying areas with high
8concentrations of low-income residents, environmental justice
9communities, and energy workers that are otherwise underserved
10by the other 13 Hub Sites, as well as review of advisory
11recommendations from the Advisory Board. One of the additional
12sites shall be located in the Northern Illinois Program
13Delivery Area covering Northern Illinois, one of the
14additional sites shall be located in the Central Illinois
15Program Delivery Area covering Central Illinois, and one of
16the additional sites shall be located in the Southern Illinois
17Program Delivery Area covering Southern Illinois as specified
18in Part 1 of this Act.
19    (c) Program elements at each Hub Site shall be provided by
20a local community-based organization that shall be initially
21competitively selected by the Department within 330 days after
22the effective date of this Act and shall be subsequently
23competitively selected by the Department every 5 years.
24Community-based organizations delivering program elements
25required in subsection (d) of this Section may provide all of
26the elements required at each Hub Site or may subcontract to

 

 

HB0804 Engrossed- 40 -LRB102 10881 SPS 16211 b

1other entities for the provision of portions of program
2elements, including, but not limited to, administrative soft
3and hard skills for program participants, delivery of training
4in the core curriculum, or the provision of other support
5functions for program delivery compliance. The Regional
6Administrators, with input from the Program Advisory Board,
7shall develop uniform minimum contractual requirements for
8competitively selected community-based organizations to
9provide the Program, uniform minimum contractual requirements
10for all Program subcontracts, and uniform templates for
11requests for proposals for all Program subcontracts.
12    (d) The Expanding Clean Energy Entrepreneurship and
13Contractor Incubator Network Program shall provide the
14following 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

 

 

HB0804 Engrossed- 41 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 42 -LRB102 10881 SPS 16211 b

1    and implement best practices for engagement.
2    (e) Within 90 days after the effective date of this Act,
3the Department shall competitively select a community-based
4organization to assist with pre-Program launch public
5communications and stakeholder tracking, which shall begin
6within 120 days after the effective date of this Act and shall
7continue through Program launch. The Department may elect to
8initiate pre-Program communication of updates to the public
9between the effective date of this Act and competitive
10selection of a community-based organization to assist.
11Pre-Program launch communications and stakeholder tracking
12functions shall include, but are not limited to, the
13following: (1) developing an initial email subscription list
14so that interested stakeholders and interested members of the
15public may sign up to receive email updates about the status of
16Program implementation, (2) develop an initial basic website
17including the initial email list subscription form and a page
18where public pre-Program updates shall be posted, (3) develop
19initial social media accounts where public pre-Program updates
20shall be posted, and (4) coordinate with the Department,
21Regional Administrators, and Advisory Board members to solicit
22information for the purposes of updating the public, as
23approved by the Department. Pre-Program updates shall include,
24but are not limited to, information about implementation
25timelines, selection of Hub Sites, selection of Advisory Board
26members, selection of Regional Administrators, selection of

 

 

HB0804 Engrossed- 43 -LRB102 10881 SPS 16211 b

1contracted organizations, updates from the Advisory Board, and
2other significant Program Administration updates. Pre-Program
3updates shall be disseminated to the public through the
4website, email list, and social media accounts no less
5frequently than monthly. Following Program launch, the
6Department shall either (A) assume direct fulfillment of all
7responsibilities of public communications and stakeholder
8tracking directly or (B) elect to continue contracting with a
9competitively selected community-based organization to provide
10these functions and develop all initial functions into ongoing
11Program functions. If the Department elects to continue to
12competitively contract these functions, the Department may
13either (i) extend the contract to the competitively selected
14community-based organization delivering the functions during
15the pre-Program launch period, and may do so for a period to be
16determined by the Department, but not to exceed 2 years
17following Program launch, or (ii) elect to competitively
18select another community-based organization to fulfill
19communications and stakeholder tracking functions. The
20Department shall subsequently competitively select a
21community-based organization to fulfill communications and
22stakeholder tracking functions once every 2 years.
 
23    Section 5-1015. Regional administrators.
24    (a) The Clean Energy Entrepreneurship and Contractor
25Incubator Network Program shall be administered by 3 Regional

 

 

HB0804 Engrossed- 44 -LRB102 10881 SPS 16211 b

1Administrators as described in Section 5-130 of Part 1 of this
2Act. In addition, the Regional Administrators shall administer
3the Departments loan and grant programs, where relevant, as
4specified in subsection (a) of Section 5-1010 of this Part.
5    (b) The Advisory Board shall have the duties given to it by
6the Part 1 of this Act as they relate to the Program. In
7addition, the Advisory Board shall provide recommendations to
8the Department to complement the gap analysis and selection of
93 Primary Hub Sites as specified in Section 5-130 of Part 1 of
10this Act.
11    (c) The Department shall require submission of quarterly
12reports including program performance metrics by each Hub Site
13to the Regional administrator of their Program Delivery Area
14as specified in subsection (a) of Section 5-1015 in a time and
15manner prescribed by the Department. Each Regional
16Administrator shall collect, track, and simultaneously submit
17quarterly reports to the Department and the Advisory Board,
18including program performance metrics reported in a format
19that allows for review of the metrics both (i) for each
20individual Hub Site and (ii) aggregated by Program Delivery
21Area. Each Regional Administrator shall provide technical
22assistance to each individual Hub Site in their Program
23Delivery Area in building systems and capacity to collect
24data. Program performance metrics include, but are not limited
25to, the following information collected for each Program
26participant:

 

 

HB0804 Engrossed- 45 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 46 -LRB102 10881 SPS 16211 b

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
7performance metrics provided under this subsection (g)
8available to the public on its website and on the Program
9website.
10    (d) Within 3 years after the effective date of this Act,
11and subsequently at least once every 3 years, the Department
12shall select an independent evaluator to evaluate and prepare
13a report on the performance of the Program and Regional
14Administrators. The evaluation shall be based on the
15quantitative and qualitative program performance metrics and
16reports specified in subsection (g) and objective criteria
17developed through a comprehensive public stakeholder process.
18The process shall include participation and recommendations
19from Program participants, Advisory Board members, additional
20current and former Program participants who are not already
21serving as members of the Advisory Board, and additional
22Program stakeholders, including organizations in environmental
23justice communities and serving low-income persons and
24families. The report shall include a summary of the evaluation
25of the Program, as well as an appendix that includes a review
26of submitted recommendations and a compilation of reported

 

 

HB0804 Engrossed- 47 -LRB102 10881 SPS 16211 b

1program performance metrics for the period covered by the
2evaluation. The report shall be posted publicly on the
3Department's website and shall be used, as needed, to improve
4implementation of the Program. The Department shall maintain
5the necessary information and records required to satisfy the
6evaluation requirements.
 
7    Section 5-1020. Jobs and Environmental Justice Grant
8Program.
9    (a) In order to provide upfront capital to support the
10development of projects, businesses, community organizations,
11and jobs creating opportunity for Black, Indigenous, and
12People of Color, the Program shall create and administer a
13Jobs and Environmental Justice Grant Program. The grant
14program shall be designed to help remove barriers to project,
15community, and business development caused by a lack of
16capital.
17    (b) The grant program shall provide grant awards of up to
18$1 million per application to support the development of
19renewable energy resources as defined in Section 1-75 of the
20Illinois Power Agency Act, and Energy Efficiency projects as
21defined in Sections 8-103B and 8-104.1 of the Public Utilities
22Act. The amount of a grant award shall be based on a project
23size and scope. Grants shall be provided upfront, in advance
24of other incentives, to provide businesses and organizations
25with capital needed to plan, develop, and execute a project.

 

 

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1Grants shall be designed to coordinate with and supplement
2existing incentive programs, such as the Adjustable Block
3Program, the Solar for All Program, the Community Solar
4Program, and renewable energy procurements as described in the
5Illinois Power Agency Act, as well as utility Energy
6Efficiency programs as described in Sections 8-103B and
78-104.1 of the Public Utilities Act.
8    (c) Grants shall be awarded to businesses and nonprofit
9organizations for costs related to the following activities
10and 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
23following 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

 

 

HB0804 Engrossed- 49 -LRB102 10881 SPS 16211 b

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
24following criteria:
25        (1) achieve a minimum of 105 points in the equity
26    points systems described in paragraph (7) of subsection

 

 

HB0804 Engrossed- 50 -LRB102 10881 SPS 16211 b

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
10not be burdensome on applicants, nor require extensive
11technical knowledge, and be able to be completed on less than 4
12standard letter-sized pages.
13    (g) The Program shall coordinate its grant program with
14the Clean Energy Jobs and Justice Fund to coordinate grants
15under this program with low-interest and no-interest financing
16opportunities offered by the fund.
17    (h) The grant program shall have a budget of $20,000,000
18per year, for a minimum of 4 years, and continued after that
19until funds are no longer available or the program is ended by
20the Department.
 
21    Section 5-1025. Funding. To provide direct, sustained
22support for the Program, the Department shall be responsible
23for overseeing the development and implementation of the
24Program, and each year shall, subject to appropriation,
25allocate at least $800,000 to each of the 16 community-based

 

 

HB0804 Engrossed- 51 -LRB102 10881 SPS 16211 b

1organizations providing program elements at the 16 Hub Sites
2described in this Act, including for the purposes of providing
3program elements through subcontracted entities. Funding of
4$21,000,000 per year for the Program shall be made available
5from the Energy Community Reinvestment Fund, and funding of
6$20,000,000 per year for the Jobs and Environmental Justice
7Grant Program shall be made available from the Energy
8Community Reinvestment Fund.
 
9    Section 5-1030. Administrative review. All final
10administrative decisions, including, but not limited to
11funding allocation and rules issued, made by the Department
12under this Part are subject to judicial review under the
13Administrative Review Law and its rules. No action may be
14commenced under this Section prior to 60 days after the
15complainant has given notice in writing of the action to the
16Department.
 
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
21and as may be updated by the Illinois Power Agency.
22    "Contractor Incubator" means an incubator authorized under
23Part 10 of this Act.

 

 

HB0804 Engrossed- 52 -LRB102 10881 SPS 16211 b

1    "Illinois Clean Energy Jobs and Justice Fund" means the
2fund created in the Illinois Clean Energy Jobs and Justice
3Fund Act.
4    "Mentor Company" means a private company selected to
5provide business mentorship to Program participants as
6described in Section 5-1535 of this Part.
7    "Minority Business" means a minority-owned business as
8described in Section 2 of the Business Enterprise for
9Minorities, Women, and Persons with Disabilities Act.
10    "Minority Business Enterprise certification" means the
11certification or recognition certification affidavit from the
12State of Illinois Department of Central Management Services
13Business Enterprise Program or a program with equivalent
14requirements more narrowly tailored to the needs of prime
15contractors.
16    "Primes Program Administrator" means the entity or person
17selected to be responsible for management of the Program as
18established in Section 5-1505 of this Part.
19    "Regional Primes Program Lead" means the entity or person
20selected to be responsible for management of the Program as
21established in Section 5-1505 of this Part.
22    "Program" means the Illinois Clean Energy Black,
23Indigenous, and People of Color Primes Contractor Accelerator
24Program.
25    "Participant" means the persons and organizations selected
26to participate in the Program.

 

 

HB0804 Engrossed- 53 -LRB102 10881 SPS 16211 b

1    "Returning Resident" is defined as in Part 20 of this Act.
2    "Workforce Hub" means a workforce training program
3authorized under Part 5 of this Act.
 
4    Section 5-1505. Illinois Clean Energy Black, Indigenous,
5and People of Color Primes Contractor Accelerator Program
6components.
7    (a) The Department of Commerce and Economic Opportunity
8shall create and implement, consistent with the requirements
9of this Part, an Illinois Clean Energy Black, Indigenous, and
10People of Color Primes Contractor Accelerator. The offerings
11for 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;

 

 

HB0804 Engrossed- 54 -LRB102 10881 SPS 16211 b

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
24coordinate Program events and training designed to connect the
25Program participants with the programs created in Parts II and
26III of this Act.

 

 

HB0804 Engrossed- 55 -LRB102 10881 SPS 16211 b

1    (c) The Department and Primes Program Administrator shall
2coordinate with the Illinois Power Agency's Adjustable Block
3Program and Illinois Solar For All program to connect Program
4participants with funding opportunities created by the
5Adjustable Block Program and Illinois Solar For All program.
6    (d) The Department and Primes Program Administrator shall
7coordinate with the electric, gas and water utilities to
8connect Program participants with Approved Vendor and other
9service provider and incentive opportunities in areas
10including energy efficiency and electric vehicles.
11    (e) The Department and Primes Program Administrator shall
12coordinate financial development assistance programs such as
13zero- and low-interest loans with the Illinois Clean Energy
14Jobs and Justice Fund or a comparable financing mechanism. The
15Department and Primes Program Administrator shall retain
16authority to determine loan repayment terms and conditions.
 
17    Section 5-1510. Program administration.
18    (a) The Department shall, in consultation with the
19Advisory Board, hire or contract a Primes Program
20Administrator within 180 days after the effective date of this
21Act.
22    (b) The Department shall select a Primes Program
23Administrator with the following qualifications:
24        (1) experience running a large contractor-based or
25    Approved Vendor business in Illinois;

 

 

HB0804 Engrossed- 56 -LRB102 10881 SPS 16211 b

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.
10The Primes Program Administrator shall be responsible for the
11following:
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

 

 

HB0804 Engrossed- 57 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 58 -LRB102 10881 SPS 16211 b

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
7Administrator, in consultation with the Department and the
8Advisory Board, shall contract with 3 Regional Primes Program
9Leads. The Regional Primes Program Leads will report directly
10to the Primes Program Administrator.
11    (e) The Regional Primes Program Leads selected by the
12Primes Program Administrator shall have the following
13qualifications:
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.

 

 

HB0804 Engrossed- 59 -LRB102 10881 SPS 16211 b

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;

 

 

HB0804 Engrossed- 60 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 61 -LRB102 10881 SPS 16211 b

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
6participants from any person with the following
7qualifications:
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
24contractors every 18 months.

 

 

HB0804 Engrossed- 62 -LRB102 10881 SPS 16211 b

1    (b) Each regional cohort will include between 3 and 5
2participants.
3    (c) The application for positions as a program participant
4shall be standardized across regions and require the following
5information:
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

 

 

HB0804 Engrossed- 63 -LRB102 10881 SPS 16211 b

1components outlined in subsection (c).
2    (e) Application who designate themselves as energy
3efficiency applicants can be awarded additional points as
4follows:
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
16efficiency applicants pursuant to paragraph (e) of this
17Section 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

 

 

HB0804 Engrossed- 64 -LRB102 10881 SPS 16211 b

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
8participants based on the application score, the Program's
9ability to accommodate the requested grants and loans, and the
10expectation of a contractor cohort that approximates the
11racial diversity in the region. The Primes Program
12Administrator shall cap contractors in the energy efficiency
13sector at 50% of available cohort spots and 50% of available
14grants and loans if possible.
15    (h) Regional Primes Program Leads shall review
16applications, conduct one-on-one interviews, and, if possible,
17visit work sites of promising candidates.
18    (i) Regional Primes Program Leads shall recommend a cohort
19of selected contractors and a corresponding budget to the
20Primes Program Administrator for final approval. Applicants
21not recommended for approval are allowed to petition the
22Primes Program Administrator, the Department and the Advisory
23Board for consideration.
24    (j) Regional Primes Program Leads shall make cohort
25recommendations to the Primes Program Administrator, the
26Department and the Advisory Board. Applicants may be asked to

 

 

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1make a short presentation to the Department and the Advisory
2Board prior to a final determination on acceptance. Final
3selection of contractor participants rests with the
4Department.
 
5    Section 5-1525. Metrics and goals for program
6participants.
7    (a) Upon each participant's acceptance into the Program,
8the Regional Primes Program Leads shall solicit, and Program
9participants shall be required to provide, the following
10information to prepare a baseline report on the Program
11participant'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
24greatest extent practical establish a monthly metric reporting
25system with each of the participating contractors and track

 

 

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1the metrics for progress against the contractor's work plan
2and Program goals. Regional Primes Program Leads shall
3compile, and require Program participants to provide
4information 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

 

 

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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
15individualized experience for each participant, nonperformance
16issues with Program participants will be addressed with
17one-on-one coaching from the Regional Primes Program Lead and
18necessary resources. Individual contractor performance issues
19shall be reported up to the Primes Program Administrator on a
20quarterly basis with issues designated as "resolved", "in
21remediation", or "needing a resolution" as appropriate.
22    (d) Individual contractors can request assignment to a
23different Mentor Company if warranted.
 
24    Section 5-1530. Regional cohort and program-level metrics
25and goals.

 

 

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1    (a) Regional Primes Program Leads shall report the
2following metrics and progress on indicated goals to the
3Primes Program Administrator on a timeline established by the
4Primes 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

 

 

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1    Program.
2    (b) The Primes Program Administrator shall compile data at
3both the regional level and the overall Program level and
4create quarterly reports for the Department and the Advisory
5Board and an annual report for the Illinois General Assembly.
6Reporting provided to the Department and General Assembly will
7be anonymized to protect the data of Program participants,
8although some reporting by zip code or other geographic
9segment may be included. It will highlight how the Program is
10building wealth through increased revenues of participating
11companies, new hiring, creation of industry jobs, increased
12revenues of the larger pool of BIPOC subcontractors and
13through community arrangements that provide for passive income
14streams and asset ownership.
 
15    Section 5-1535. Mentorship Program
16    (a) The Regional Primes Program Leads shall recruit
17private companies to serve as mentors to Program participants.
18The primary role of the Mentor Companies shall be to assist
19Program participants in succeeding in the clean energy
20industry.
21    (b) The Primes Program Administrator may select Mentor
22Companies 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

 

 

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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
5with Mentor Companies and the mentee Program participants to
6create a plan for ongoing contact in opportunities such as
7on-the-job training, site walkthroughs, business process and
8structure walkthroughs, quality assurance and quality control
9reviews, and other relevant activities. Mentor Companies may
10identify what level of stipend they require.
11    (d) The Regional Primes Program Lead shall recommend the
12Mentor Company-mentee pairings and associated Mentor Company
13stipends to the Primes Program Administrator for approval.
14    (e) The Regional Primes Program Lead shall conduct an
15annual review of each Mentor Company-mentee pairing and
16recommend whether it continues for a second year and the level
17of stipend that is appropriate. The review will also ensure
18that any profit-sharing and purchased services agreements
19adhere to the guidelines established by the Primes Program
20Administrator.
 
21    Section 5-1540. Program budget.
22    (a) The Department shall allocate $3 million annually to
23the Primes Program Administrator for each of the 3 regional
24budgets from the Energy Community Reinvestment Fund.
25    (b) Each regional budget will be developed collaboratively

 

 

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1by the Primes Program Administrator and the corresponding
2Regional Primes Program Lead. The budget will cover Program
3administration, Program publicity and candidate recruitment,
4training and certification costs, operational support grants
5for Program participants, Mentor Company stipends and loan
6loss reserves for contractor capitalization as well as other
7costs the Primes Program Administrator deems to be necessary
8or beneficial for the implementation of the Program.
9    (c) The Primes Program Administrator shall conduct
10budgeting in conjunction with Illinois Clean Energy Jobs and
11Justice Fund or comparable financing institution so that loan
12loss reserves are sufficient to underwrite $7 million in
13low-interest loans in each of the 3 regions.
14    (d) All available grant and loan funding should be made
15available to Program participants in a timely fashion.
 
16
Part 20. Returning Residents Program

 
17    Section 5-2001. Purpose. The Returning Residents Clean
18Jobs Training Program shall be established within the Illinois
19Department of Commerce and Economic Opportunity in an effort
20to assist inmates in their rehabilitation through training
21that prepares them to successfully hold employment in the
22clean energy jobs sector upon their release from
23incarceration.
 

 

 

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1    Section 5-2005. Definitions. As used in this Part:
2    "Commitment" means a judicially determined placement in
3the custody of the Department of Corrections on the basis of
4conviction or delinquency.
5    "Committed person" means a person committed to the
6Department of Corrections.
7    "Correctional institution or facility" means a Department
8of Corrections building or part of a Department of Corrections
9building where committed persons are detained in a secure
10manner.
11    "Discharge" means the end of a sentence or the final
12termination of a detainee's physical commitment to and
13confinement in the Department of Corrections.
14    "Program" means the clean energy jobs instruction
15established by this Part.
16    "Program Administrator" means the person or entity
17selected to administer and coordinate the work of the Illinois
18Returning Residents Clean Jobs Training Program as established
19in Section 5-2030 of this Part.
20    "Regional Administrator" means the person or entity
21selected to administer and coordinate programs as described in
22Section 5-130 of Part 1 of this Act.
23    "Returning resident" means any United States resident who
24is: 17 years of age or older; in the physical custody of the
25Department of Corrections and scheduled to be re-entering
26society within 12 months.
 

 

 

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1    Section 5-2010. Program.
2    (a) General. The Returning Residents Clean Jobs Training
3Program shall be based on a curriculum designed to be as
4similar as practical to the Clean Energy Jobs Training
5Programs available for persons not committed as established in
6Part 5 of this Act. The program shall include structured
7hands-on activities in correctional institutions or
8facilities, including classroom spaces and outdoor spaces, to
9instruct participants in the core curriculum established in
10Part 5 of this Act.
11    (b) Connected Services. The program shall be designed and
12operated to allow participants to graduate from the program as
13hireable in the solar power and energy efficiency industries.
14The program shall provide participants with the knowledge and
15ability to access the necessary mental health, case
16management, and other support services, both during the
17program and after graduation, to ensure they are successful in
18the clean energy jobs sector.
19    (c) Recruitment of Participants. The Program
20Administrators shall implement a recruitment process to
21educate committed persons on the benefits of the program and
22how to enroll in the program. This recruitment process must
23reach both men's correctional institutions and facilities and
24women's correctional institutions and facilities.
25    (d) Connection to Employers. The Program Administrators

 

 

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1shall be responsible for connecting program graduates with
2potential employers in the solar power and energy efficiency
3and related industries. The Regional Administrators shall
4assist the Program Administrators with this task.
5    (e) Graduation. Participants who successfully complete all
6assignments in the program shall be considered graduates and
7shall receive a program graduation certificate, as well as any
8certifications earned in the process.
 
9    Section 5-2015. Administrative rules; eligibility.
10    (a) A committed person in a correctional institution or
11facility 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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1needed to determine eligibility and work with the Program
2Administrator to select individuals for the training program.
 
3    Section 5-2020. Program entry and testing requirements.To
4enter the Returning Residents Clean Jobs Training Program,
5committed persons must complete a simple application, undergo
6an interview and coaching session, and pass the Test for Adult
7Basic Education. The Returning Residents Clean Jobs Training
8Program shall include a one week "pre" program boot camp that
9ensures the candidates understand and are interested in
10continuing the program. Candidates that successfully complete
11the "pre" program boot camp shall continue to the full
12program.
 
13    Section 5-2025. Administrative rules; drug testing. A
14clean drug test is required to complete the Returning
15Residents Clean Jobs Training Program. A drug test shall be
16administered at least once prior to graduation, and, if
17positive, it shall not result in immediate expulsion, but
18outreach must be performed to offer assistance and mitigation.
19An additional clean test is then required to complete the
20program.
 
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.

 

 

HB0804 Engrossed- 78 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 81 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 83 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 84 -LRB102 10881 SPS 16211 b

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
5Residents Clean Jobs Training Program, implement and enforce
6the policies and requirements of the program and the Program
7Administrators, and review, approve, and make adjustments to
8the implementation policies and deliverables of the Program
9Administrators and other program implementers. The Advisory
10Board shall ensure that metrics and a reporting structure are
11in place to support successful implementation. These metrics
12shall 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
23the Department and with Program Administrators and
24implementers for the program created by Part 5 of this Act. All
25program implementers should have input before major changes to

 

 

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1policy, metrics, or outcomes are determined. Program metrics
2and performance outcomes shall be published on the
3Department's website annually.
4    (b) The Director of the Department of Corrections shall
5ensure that the wardens or superintendents of all correctional
6institutions and facilities visibly post information on the
7program in common areas of their respective institutions,
8broadcast the same via in-house institutional information
9television channels, and distribute updated information in a
10timely, visible, and accessible manner.
11    (c) All program content and materials shall be distributed
12annually to the Community Support Advisory Councils of the
13Department of Corrections for use in re-entry programs across
14this State.
 
15    Section 5-2040. Returning Residents Clean Jobs Training
16Program monitoring and enforcement.
17    (a) The Director of Corrections shall ensure that wardens
18or superintendents, program, educational, and security and
19movement staff permit program workshops to take place, and
20that returning residents are escorted to workshops in a
21consistent and timely manner.
22    (b) Compliance with this Part shall be monitored by a
23report published annually by the Department of Corrections
24containing data, including numbers of returning residents who
25enrolled in the program, numbers of returning residents who

 

 

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1completed the program, and total numbers of individuals
2discharged. Other data that shall be collected include the
3number of people hired, the type of employment (full-time
4versus part-time; permanent versus seasonal short-term
5contract), the salary grade of people hired every 3 months,
6certifications of people hired every 3 months, the demographic
7mix of project teams per project, and the recidivism rate over
83 to 5 years. Data shall be disaggregated by institution,
9discharge, or residence address of resident, and other
10factors.
 
11    Section 5-2045. Funding. The Funding for this program
12shall be subject to appropriation from the Energy Community
13Reinvestment Fund and other sources. The Director of the
14Department of Commerce and Economic Opportunity may, upon
15consultation with the Director of Corrections, allocate
16funding to the Department of Corrections as necessary to
17offset costs incurred by the Departments of Corrections in
18program implementation.
 
19    Section 5-2050. Access. The program instructors and staff
20shall have access to Department of Corrections institutions
21and facilities as needed, including, but not limited to,
22classroom space and outdoor space, with an expectation that
23they shall follow all facility procedures and protocols.
 

 

 

HB0804 Engrossed- 87 -LRB102 10881 SPS 16211 b

1
Article 10. Illinois Clean Energy
2
Jobs and Justice Fund Act

 
3    Section 10-1. Short title. This Article may be cited as
4the Illinois Clean Energy Jobs and Justice Fund Act.
5References 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,
8and prosperity of all the residents of this State by ensuring
9access to financial products that allow Illinois residents and
10businesses to invest in clean energy. Furthermore, the
11Illinois Clean Energy Jobs and Justice Fund, is designed to
12fill 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,
18the following terms shall have the following definitions:
19    "Black, indigenous, and people of color" or "BIPOC" is
20defined as people who are members of the groups described in
21subparagraphs (a) through (e) of paragraph (A) of subsection
22(1) of Section 2 of the Business Enterprise for Minorities,
23Women, and Persons with Disabilities Act.
24    "Board" means the Board of Directors of the Illinois Clean
25Energy Jobs and Justice Fund.

 

 

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1    "Contractor of color" means a business entity that is at
2least 51% owned by one or more BIPOC persons, or in the case of
3a corporation, at least 51% of the corporation's stock is
4owned by one or more BIPOC persons; and the management and
5daily business operations of which are controlled by one or
6more of the BIPOC persons who own it. A contractor of color may
7also be a nonprofit entity with a board of directors composed
8of at least 51% BIPOC persons or a nonprofit entity certified
9by the State of Illinois to be minority-led.
10    "Environmental justice communities" means the definition
11of that term based on existing methodologies and findings used
12by the Illinois Power Agency and its Administrator of the
13Illinois Solar for All Program.
14    "Fund" means the Illinois Clean Energy Jobs and Justice
15Fund.
16    "Low-income" means households whose income does not exceed
1780% of Area Median Income (AMI), adjusted for family size and
18revised every 5 years.
19    "Low-income community" means a census tract where at least
20half of households are low-income.
21    "Minority-owned business enterprise" or "MBE" means a
22business certified as such by an authorized unit of government
23or other authorized entity in Illinois.
24    "Municipality" means a city, village, or incorporated
25town.
26    "Person" means any natural person, firm, partnership,

 

 

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1corporation, either domestic or foreign, company, association,
2limited liability company, joint stock company, or association
3and includes any trustee, receiver, assignee, or personal
4representative thereof.
 
5    Section 10-15. Clean Energy Jobs and Justice Fund.
6    (a) Formation. Not later than 30 days after the effective
7date of this Act, there shall be incorporated a nonprofit
8corporation to be known as the "Clean Energy Jobs and Justice
9Fund."
10    (b) Limitation. The Fund shall not be an agency or
11instrumentality of the State Government.
12    (c) Full faith and credit. The full faith and credit of the
13State 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.
 

 

 

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1    Section 10-20. Board of directors.
2    (a) Board composition. The Fund shall be managed by, and
3its powers, functions, and duties shall be exercised through,
4a board to be composed of 11 members. The initial members of
5the 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

 

 

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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

 

 

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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
25broadly representative of the communities that the Fund is
26designed to serve and shall collectively have expertise in

 

 

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1environmental justice, energy efficiency, distributed
2renewable energy, workforce development, finance and
3investments, clean transportation, and climate resilience. Of
4such 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
23the State or any other level of government may be appointed or
24elected as a member of the Board.
25    (e) Quorum. Seven members of the Board shall constitute a
26quorum.

 

 

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1    (f) Bylaws. The board shall adopt, and may amend, such
2bylaws as are necessary for the proper management and
3functioning of the Fund. Such bylaws shall include designation
4of officers of the Fund and the duties of such officers.
5    (g) Restrictions. No person who is an employee in any
6managerial or supervisory capacity, director, officer or agent
7or who is a member of the immediate family of any such
8employee, director, officer or agent of any public utility is
9eligible to be a director. No director may hold any elective
10position, be a candidate for any elective position, be a State
11public official, be employed by the Illinois Commerce
12Commission, or be employed in a governmental position exempt
13from the Illinois Personnel Code.
14    (h) Director, Family Member Employment. No director, nor
15member of his or her immediate family shall, either directly
16or indirectly, be employed for compensation as a staff member
17or consultant of the Fund.
18    (i) Meetings. The board shall hold regular meetings at
19least once every 3 months on such dates and at such places as
20it may determine. Meetings may be held by teleconference or
21videoconference. Special meetings may be called by the
22president or by a majority of the directors upon at least 7
23days' advance written notice. The act of the majority of the
24directors, present at a meeting at which a quorum is present,
25shall be the act of the board of directors unless the act of a
26greater number is required by this Act or bylaws. A summary of

 

 

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1the minutes of every board meeting shall be made available to
2each public library in the State upon request and to
3individuals upon request. Board of Director meeting minutes
4shall be posted on the Fund's website within 14 days after
5Board approval of the minutes.
6    (j) Expenses. A director may not receive any compensation
7for his or her services but shall be reimbursed for necessary
8expenses, including travel expenses incurred in the discharge
9of duties. The board shall establish standard allowances for
10mileage, room and meals and the purposes for which such
11allowances may be made and shall determine the reasonableness
12and necessity for such reimbursements.
13    (k) In the event of a vacancy on the board, the board of
14Directors shall appoint a temporary member, consistent with
15the requirements of the board composition, to serve the
16remainder of the term for the vacant seat.
17    (l) The board shall adopt rules for its own management and
18government, including bylaws and a conflict of interest
19policy.
20    (m) The board of directors of the Fund shall adopt written
21procedures 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

 

 

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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
21measure the degree to which the program is meeting the
22purposes set forth in Section 5-10 of this Act, and especially
23measuring adherence to the racial equity purposes set forth
24there, and a reporting format and schedule to be adhered to by
25the Fund officers and staff. These metrics and reports shall
26be posted quarterly on the Fund's website.

 

 

HB0804 Engrossed- 98 -LRB102 10881 SPS 16211 b

1    (o) The board of directors has the responsibility to make
2program adjustments necessary to ensure the Clean Energy Jobs
3and Justice Fund is meeting the purposes set forth in Section
45-10 of this Act. Fund officers and staff and the board of
5directors are responsible for ensuring capital providers and
6Fund officers and staff, partners, and financial institutions
7are held to state and federal standards for ethics and
8predatory lending practices and shall immediately remove any
9offending products and sponsoring organizations from Fund
10participation.
11    (p) The board shall issue annually a report reviewing the
12activities of the Fund in detail and shall provide a copy of
13such report to the joint standing committees of the General
14Assembly having cognizance of matters relating to energy and
15commerce. The report shall be published on the Fund's website
16within 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
19actions, 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

 

 

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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

 

 

HB0804 Engrossed- 100 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 101 -LRB102 10881 SPS 16211 b

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
15power of the Fund set forth in this Section or any other
16provision of the general statutes, the Fund shall have and may
17exercise the following powers in furtherance of or in carrying
18out 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

 

 

HB0804 Engrossed- 102 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 103 -LRB102 10881 SPS 16211 b

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
12form of financing support or risk management for a clean
13energy project, the Fund shall develop standards to govern the
14administration of the Fund through rules, policies and
15procedures that specify borrower eligibility, terms and
16conditions of support, and other relevant criteria, standards,
17or procedures.
18    (d) Capitalization. The Fund shall be capitalized with
19$100 million from the Energy Community Reinvestment Fund
20within the first year after the enacted date of this Act. The
21Fund will receive additional capitalization of $40 million
22each year thereafter. Funding sources specifically authorized
23include, 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

 

 

HB0804 Engrossed- 104 -LRB102 10881 SPS 16211 b

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
12sources to raise capital.
13    (f) The Fund may assess reasonable fees on its financing
14activities to cover its reasonable costs and expenses, as
15determined by the board.
16    (g) The Fund shall make information regarding the rates,
17terms and conditions for all of its financing support
18transactions available to the public for inspection, including
19formal annual reviews by both a private auditor conducted
20pursuant this Section and the Comptroller, and provide details
21to the public on the Internet, provided public disclosure
22shall be restricted for patentable ideas, trade secrets,
23proprietary or confidential commercial or financial
24information, disclosure of which may cause commercial harm to
25a nongovernmental recipient of such financing support and for
26other information exempt from public records disclosure.

 

 

HB0804 Engrossed- 105 -LRB102 10881 SPS 16211 b

1    (h) The powers enumerated in this Section shall be
2interpreted broadly to effectuate the purposes established in
3this Section and shall not be construed as a limitation of
4powers.
 
5    Section 10-30. Primary responsibilities in early program
6development.
7    (a) Consistent with the goals of this Act, the Fund has the
8authority to pursue a broad range of financial products and
9services. In early development of products and services
10offered, the Fund should consider the following programs as
11its 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

 

 

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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
14the same qualifications as a director pursuant to subsection
15(d) Section 10-10 of this Act. The executive director may not
16be a candidate for the Board of Directors while serving as
17executive director. The executive director must have 5 or more
18years of experience in equitable and inclusive financing
19serving racially and socioeconomically diverse communities.
20    (b) To hire the executive director, the board shall adhere
21to any applicable State or federal law prohibiting
22discrimination in employment.
23    (c) The board shall require all applicants for the
24position of executive director of the Fund to file a financial
25statement consistent with requirements established by the

 

 

HB0804 Engrossed- 107 -LRB102 10881 SPS 16211 b

1board. The board shall require the executive director to file
2a current statement annually.
3    (d) The Fund shall be administered by the executive
4director and the staff and overseen by the Board of Directors.
5Fund officers and staff shall receive training in how to best
6provide services and support to low-income, environmental
7justice, and BIPOC communities and on supporting borrowers
8with loan applications, loan underwriting, and loan services.
 
9    Section 10-40. Dissolution. The Fund may dissolve or be
10dissolved 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
13the Community Energy, Climate, and Jobs Planning Act.
14References in this Article to "this Act" mean this Article.
 
15    Section 15-5. Findings. The General Assembly makes the
16following 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

 

 

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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
13upgrade of electrical wiring, outlets, or charging stations to
14charge a motor vehicle that is fully or partially powered by
15electricity; photovoltaic, energy storage, or thermal
16resource; or any combination thereof.
17    "Disadvantaged worker" means an individual who is defined
18as: (1) being homeless; (2) being a custodial single parent;
19(3) being a recipient of public assistance; (4) lacking a high
20school diploma or high school equivalency; (5) having a
21criminal record or other involvement in the criminal justice
22system; (6) suffering from chronic unemployment; (7) being
23previously in the child welfare system; or (8) being a
24veteran.
25    "Energy efficiency improvement" means equipment, devices,

 

 

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1or materials intended to decrease energy consumption or
2promote a more efficient use of electricity, natural gas,
3propane, or other forms of energy on property, including, but
4not 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

 

 

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1an alternative energy improvement, energy efficiency
2improvement, or water use improvement, or the acquisition,
3installation, or improvement of a renewable energy system that
4is affixed to a stabilized existing property (including new
5construction).
6    "Governing body" means the county board or board of county
7commissioners of a county or the city council or board of
8trustees of a municipality.
9    "Local Employment Plan" means a bidding option that public
10agencies may include in requests for proposals to incentivize
11bidders to voluntarily plan to retain and create high-skilled
12local manufacturing jobs; invest in preapprenticeship,
13apprenticeship, and training opportunities; and develop
14family-sustaining career pathways into clean energy industries
15for disadvantaged workers in a specified local area. The Local
16Employment Plan only applies to work that is not financed with
17federal money.
18    "Local unit of government" means a county or municipality.
19    "Natural climate solutions" means conservation,
20restoration, or improved land management actions that increase
21carbon storage or avoid greenhouse gas emissions on natural
22and working lands.
23    "Nature-based approaches for climate adaptation" means
24actions that preserve, enhance, or expand functions provided
25by nature that increase capacity to manage adverse conditions
26created or exacerbated by climate change. "Nature-based

 

 

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1approaches for climate adaptation" includes, but is not
2limited to, the restoration of native ecosystems, especially
3floodplains; installation of bioswales, rain gardens, and
4other green stormwater infrastructure; and practices that
5increase soil health and reduce urban heat island effects.
6    "Public agency" means the State of Illinois or any of its
7government bodies and subdivisions, including the various
8counties, townships, municipalities, school districts,
9educational service regions, special road districts, public
10water supply districts, drainage districts, levee districts,
11sewer districts, housing authorities, and transit agencies.
12    "Renewable energy resource" includes energy and its
13associated renewable energy credit or renewable energy credits
14from wind energy, solar thermal energy, geothermal energy,
15photovoltaic cells and panels, biodiesel, anaerobic digestion,
16and hydropower that does not involve new construction or
17significant expansion of hydropower dams. For purposes of this
18Act, landfill gas produced in the State is considered a
19renewable energy resource. "Renewable energy resource" does
20not include the incineration or burning of any solid material.
21    "Renewable energy system" means a fixture, product,
22device, or interacting group of fixtures, products, or devices
23on the customer's side of the meter that use one or more
24renewable energy resources to generate electricity, and
25specifically includes any renewable energy project, as defined
26in Section 825-65 of the Illinois Finance Authority Act.

 

 

HB0804 Engrossed- 112 -LRB102 10881 SPS 16211 b

1    "U.S. Employment Plan" means a bidding option that public
2agencies may include in requests for proposals to incentivize
3bidders to voluntarily plan to retain and create high-skilled
4U.S. manufacturing jobs; invest in preapprenticeship,
5apprenticeship, and training opportunities; and develop
6family-sustaining career pathways into clean energy industries
7for disadvantaged workers throughout the U.S. The U.S.
8Employment Plan only applies to work financed with federal
9money.
10    "Water use improvement" means any fixture, product,
11system, device, or interacting group thereof for or serving
12any property that has the effect of conserving water resources
13through improved water management, efficiency, or thermal
14resource.
 
15    Section 15-15. Community Energy, Climate, and Jobs Plans;
16creation.
17    (a) Pursuant to the procedures in Section 15-20, a local
18unit of government may establish Community Energy, Climate,
19and Jobs Plans and identify boundaries and areas covered by
20the Plans.
21    (b) Community Energy, Climate, and Jobs Plans are intended
22to aid local governments in developing a comprehensive
23approach to combining different energy, climate, and jobs
24programs and funding resources to achieve complementary
25impact. An effective planning process may:

 

 

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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;

 

 

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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
13discussion 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,

 

 

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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
12the 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

 

 

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1conclude 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, NOx,
25    SOx, particulate matter, and other air pollutants; and
26        (11) improve community assets that help residents

 

 

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1    respond to extreme heat and cold emergencies.
2    (f) A Community Energy, Climate, and Jobs Plan may be
3administered by one or more program administrators or the
4local unit of government.
5    (g) To be eligible for participation or funding through
6the Clean Energy Empowerment Zone pilot projects, as provided
7under Section 16-108.9 of the Public Utilities Act, or the
8Carbon-Free Last Mile of Commutes Program, described in
9Section 35 of the Electric Vehicle Act, a unit of local
10government shall include in its Community Energy, Climate, and
11Jobs Plans the information necessary for participation in
12these 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

 

 

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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
13Planning process.
14    (a) An effective planning process shall engage with a
15diverse set of stakeholders in local communities, including:
16environmental justice organizations; economic development
17organizations; faith-based nonprofit organizations;
18educational institutions; interested residents; health care
19institutions; tenant organizations; housing institutions,
20developers, and owners; elected and appointed officials; and
21representatives reflective of each local community.
22    (b) An effective planning process shall engage with
23individual members of the community as much as possible to
24ensure that the Plans receive input from as diverse a set of
25perspectives as possible.

 

 

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1    (c) Plan materials and meetings related to the Plan shall
2be translated into languages that reflect the makeup of the
3local community.
4    (d) The planning process shall be conducted in an ethical,
5transparent fashion, and continually review its policies and
6practices to determine how best to meet its objectives.
 
7    Section 15-25. Joint Community Energy, Climate, and Jobs
8Plans. A local unit of government may join with any other local
9unit of government, or with any public or private person, or
10with any number or combination thereof, under the
11Intergovernmental Cooperation Act, by contract or otherwise as
12may be permitted by law, for the implementation of a Community
13Energy, 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
16the Energy Community Reinvestment Act. References in this
17Article to "this Act" mean this Article.
 
18    Section 20-5. Findings. The General Assembly finds that,
19as part of putting Illinois on a path to 100% renewable energy,
20the State of Illinois should ensure a just transition to that
21goal, providing support for the transition of Illinois'
22communities and workers impacted by closures or reduced use of

 

 

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1fossil fuel power plants, nuclear power plants, or coal mines
2by allocating new economic development resources for business
3tax incentives, workforce training, site clean-up and reuse,
4and local tax revenue replacement.
5    The General Assembly finds and declares that the health,
6safety, and welfare of the people of this State are dependent
7upon a healthy economy and vibrant communities; that the
8closure of fossil fuel power plants, nuclear power plants, and
9coal mines across the State have a significant impact on their
10surrounding communities; that the expansion of renewable
11energy creates significant job growth and contributes
12significantly to the health, safety, and welfare of the people
13of this State; that the continual encouragement, development,
14growth, and expansion of renewable energy within the State
15requires a cooperative and continuous partnership between
16government and the renewable energy sector; and that there are
17certain areas in this State that have lost, or will lose, jobs
18due to the closure of fossil fuel power plants, nuclear power
19plants, and coal mines and need the particular attention of
20government, labor, and the residents of Illinois to help
21attract new investment into these areas and directly aid the
22local community and its residents.
23    Therefore, it is declared to be the purpose of this Act to
24explore ways of stimulating the growth of new private
25investment, including renewable energy investment, in this
26State and to foster job growth in areas impacted by the closure

 

 

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1of coal energy plants, coal mines, and nuclear energy plants.
 
2    Section 20-10. Definitions. As used in this Act, unless
3the context otherwise requires:
4    "State agencies" or "agencies" has the same meaning as
5"State agencies" under Section 1-7 of the Illinois State
6Auditing Act.
7    "Board" means the Clean Energy Empowerment Zone Board
8created in Section 20-20.
9    "Clean Energy Empowerment Zone" or "Empowerment Zones"
10means an area of the State certified by the Department as a
11Clean Energy Empowerment Zone under this Act.
12    "Commission" means the Energy Transition Workforce
13Commission created in Section 20-45.
14    "Department" means the Department of Commerce and Economic
15Opportunity.
16    "Displaced energy worker" means an energy worker who has
17lost employment, or is anticipated by the Department to lose
18employment within the next 2 years, due to the reduced
19operation or closure of a fossil fuel power plant, nuclear
20power plant, or coal mine.
21    "Energy worker" means a person who has been employed
22full-time for a period of one year or longer, and within the
23previous 5 years, at a fossil fuel power plant, a nuclear power
24plant, or a coal mine located within the State of Illinois,
25whether or not they are employed by the owner of the power

 

 

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1plant or mine. Energy workers are considered to be full-time
2if they work at least 35 hours per week for 45 weeks a year or
3the 1,820 work-hour equivalent with vacations, paid holidays,
4and sick time, but not overtime, included in this computation.
5Classification of an individual as an energy worker continues
6for 5 years from the latest date of employment or the effective
7date of this Act, whichever is later.
8    "Environmental justice communities" means the definition
9of that term based on existing methodologies and findings,
10used and as may be updated by the Illinois Power Agency and its
11program administrator in the Illinois Solar for All Program.
12    "Fossil fuel power plant" means an electric generating
13facility powered by gas, coal, other fossil fuels, or a
14combination thereof.
15    "Low-income" means persons and families whose income does
16not exceed 80% of area median income, adjusted for family size
17and revised every 2 years.
18    "Local labor market area" means an economically integrated
19area within which individuals reside and find employment
20within a reasonable distance of their places of residence or
21can readily change jobs without changing their places of
22residence.
23    "Renewable energy enterprise" means a company that is
24engaged in the production, manufacturing, distribution, or
25development of renewable energy resources and associated
26technologies.

 

 

HB0804 Engrossed- 123 -LRB102 10881 SPS 16211 b

1    "Renewable energy project" means a project conducted by a
2renewable energy enterprise for the purpose of generating
3renewable energy resources or energy storage.
4    "Renewable energy resources" has the meaning set forth in
5Section 1-10 of the Illinois Power Agency Act.
6    "Rule" has the meaning set forth in Section 1-70 of the
7Illinois Administrative Procedure Act.
 
8    Section 20-15. Designation of Clean Energy Empowerment
9Zones.
10    (a) Purpose. It is the intent of the General Assembly that
11designation of a community as a Clean Energy Empowerment Zone
12shall be reserved for communities that have experienced
13economic or environmental hardship due to the energy
14transition or fossil fuel power generation and extraction. The
15purpose of this Section 20-15 is to establish an efficient and
16equitable process by which the Department and communities
17across the State may seek the designation of Clean Energy
18Empowerment Zones, thereby allowing for economic and
19environmental benefits of the clean energy economy to be
20obtained by communities that have been deprived of these
21benefits. The process conducted by the Department, the Board,
22and participating units of local government shall be as
23transparent and inclusive as is reasonably practical.
24    (b) Notification of local governments. Within 30 days
25after the effective date of this Act, the Department shall

 

 

HB0804 Engrossed- 124 -LRB102 10881 SPS 16211 b

1publish a notice on its website stating its intention to begin
2the review of potential locations for Clean Energy Empowerment
3Zone regional designations, and solicit information from the
4public on this topic. Within 45 days after the effective date
5of this Act, the Department shall submit a notice to the county
6board of each jurisdiction in which a fossil fuel power plant,
7coal mine, or nuclear power plant is located, informing the
8local governments of their intention to develop a list of
9Clean Energy Empowerment Zones, providing a basic explanation
10of the benefits of designation as a Clean Energy Empowerment
11Zone, and informing them of participation opportunities in the
12designation process. The Department may notify other persons
13or local government units of this process at any time.
14    (c) Proposed list of Clean Energy Empowerment Zones.
15Within 120 days after the effective date of this Act, the
16Department of Commerce and Economic Opportunity shall develop
17a proposed list of geographic regions in Illinois that qualify
18as Clean Energy Empowerment Zones. The Department shall work
19with the Illinois Environmental Protection Agency, the
20Commission on Environmental Justice, the Department of Labor,
21the Department of Natural Resources, and community
22organizations to identify regions impacted by the decline of
23coal generation, gas generation, nuclear generation, and coal
24mining to develop the recommended list of regions that qualify
25for Clean Energy Empowerment Zone designations. The Department
26shall furnish maps that identify the proposed boundaries of

 

 

HB0804 Engrossed- 125 -LRB102 10881 SPS 16211 b

1proposed Clean Energy Empowerment Zones, and include
2justification for the inclusion or exclusion of certain
3locations or regions. The proposed list shall be subject to
4the notice and comment process established in subsection (e).
5    (d) Criteria for designation as a Clean Energy Empowerment
6Zone. A region shall be proposed by the Department, and
7certified by the Board as a Clean Energy Empowerment Zone if it
8meets all of the following characteristics listed in
9paragraphs (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

 

 

HB0804 Engrossed- 126 -LRB102 10881 SPS 16211 b

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
7proposed list of regions to be designated as Clean Energy
8Empowerment Zones, or proposing additions to the list, the
9Department shall conduct a 60-day public comment process, in
10partnership with the other agencies, departments, and units of
11local government where beneficial for the purposes of this
12Section. The public comment process shall include, at a
13minimum, 2 public hearings that are accessible to working
14residents, shall prioritize the solicitation of feedback from
15environmental justice communities and communities directly
16impacted by the Clean Energy Empowerment Zone designation, and
17shall provide for the submission of written comments through
18the Internet.
19    Within 30 days after concluding the public comment
20process, the Department shall modify or finalize the proposed
21list of geographic regions that qualify as Clean Energy
22Empowerment Zones and submit the list to the Clean Energy
23Empowerment Zone Board for approval or modification as
24described in Section 20-20.
25    (f) Local government self-designation. After the
26Department submits its first list of proposed Clean Energy

 

 

HB0804 Engrossed- 127 -LRB102 10881 SPS 16211 b

1Empowerment Zones to the Board, units of local government may,
2on an ongoing basis, submit applications to the Department to
3designate an area wholly or partially in their jurisdiction as
4a Clean Energy Empowerment Zone if the Department has not
5proposed the region as a potential Clean Energy Empowerment
6Zone to the Board. Multiple units of local government may
7submit a joint application for designation if the proposed
8region or regions fall partially or wholly within their
9combined jurisdictions. A unit of local government may submit
10an 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
25include a certified copy of the ordinance designating the
26proposed Zone; a map of the proposed Clean Energy Empowerment

 

 

HB0804 Engrossed- 128 -LRB102 10881 SPS 16211 b

1Zone, showing existing streets and highways; an analysis, and
2any appropriate supporting documents and statistics,
3demonstrating that the proposed zone area is qualified in
4accordance with subsection (d); a statement detailing any tax,
5grant, and other financial incentives or benefits, and any
6programs, to be provided by the municipality or county to
7renewable energy enterprises within the Zone, which are not
8otherwise provided throughout the municipality or county; a
9statement setting forth the economic development and planning
10objectives for the Zone; an estimate of the economic impact of
11the Zone, considering all of the tax incentives, financial
12benefits and programs contemplated, upon the revenues of the
13municipality or county; a specific definition of the
14applicant's local labor market area; a transcript of all
15public hearings on the Zone; and any additional information as
16the Department may by rule require.
17    Within 60 days after receiving an application from a unit
18of local government, the Department shall review the
19application to determine whether the designated area qualifies
20as a Clean Energy Empowerment Zone under this Section, and
21submit its recommendation to the Clean Energy Empowerment Zone
22Board including all necessary information and records for the
23Board to review, as described in Section 20-20. Within 7 days
24after submitting the recommendation to the Board, the
25Department shall provide a copy of its recommendation to the
26applicant, including all supporting documents and information

 

 

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1submitted to the Board.
2    (g) Application process. The Department shall, no later
3than July 1, 2021, develop an ongoing application process for
4Clean Energy Empowerment Zone applications by units of local
5government. The application process shall be open during the
6period of July 1, 2021 through January 1, 2050. The
7Department, or any predecessor of the Department, may extend
8the application process beyond that date if it deems it is
9necessary or prudent to accomplish the purpose of this Act.
10    (h) Length of designation. A Clean Energy Empowerment Zone
11designation lasts for 10 years from the effective date of the
12designation and shall be subject to review by the Board after
1310 years for an additional 10-year designation beginning on
14the expiration date of the Clean Energy Empowerment Zone.
15During the review process, the Board shall consider the costs
16incurred by the State and units of local government as a result
17of benefits received by the Clean Energy Empowerment Zone.
18    (i) Emergency rulemaking. The Department has emergency
19rulemaking authority for the purpose of implementation of this
20Section until 12 months after the effective date of this Act as
21provided under Section 5-45 of the Illinois Administrative
22Procedure Act.
 
23    Section 20-20. Clean Energy Empowerment Zone Board.
24    (a) A Clean Energy Empowerment Zone Board is hereby
25created within the Department.

 

 

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1    (b) The Board shall consist of 8 voting members, one of
2whom shall be the Director of Commerce and Economic
3Opportunity, or his or her designee, who shall serve as
4chairperson; one of whom shall be the Director of Revenue, or
5his or her designee; 2 of whom shall be members appointed by
6the Governor, with the advice and consent of the Senate; one of
7whom shall be appointed by the Speaker of the House of
8Representatives; one of whom shall be appointed by the
9President of the Senate; one of whom shall be appointed by the
10Minority Leader of the House; and one of whom shall be
11appointed by the Minority Leader of the Senate. Designees
12shall be appointed within 60 days after a vacancy. No fewer
13than 4 of the 8 voting members shall consist of low-income
14residents or residents of environmental justice communities.
15At least one of the Board members shall be a representative of
16organized labor. All meetings shall be accessible, with
17rotating locations, call-in options, and materials and agendas
18circulated well in advance, and there shall also be
19opportunities for input outside of meetings from those with
20limited capacity and ability to attend, via one-on-one
21meetings, surveys, and calls.
22    Board members shall serve without compensation, but may be
23reimbursed for necessary expenses incurred in the performance
24of their duties from funds appropriated for that purpose. Each
25member appointed shall have at least 5 years of experience in
26business development or economic development. The Department

 

 

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1of Commerce and Economic Opportunity shall provide
2administrative support to the Board, including the selection
3of a Department staff member to serve as a Board Liaison
4between the Department and the Advisory Board.
5    (c) All final actions by the Board pursuant to this
6subsection (c) shall require approval by a simple majority of
7the 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
21after submission of applications or tax credits, pursuant to
22subsection (c) of this Section, to the Board by the
23Department, the Board shall approve, disapprove, or modify
24applications for certification of regions as Clean Energy
25Empowerment Zones. If the Board does not take final action on a
26submission within 60 days after the submission, the

 

 

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1application submitted by the Department shall be considered
2approved, and the regions proposed in the application shall be
3certified as Clean Energy Empowerment Zones.
 
4    Section 20-25. Incentives for renewable energy enterprises
5located within a Clean Energy Empowerment Zone.
6    (a) Renewable energy enterprises located in Clean Energy
7Empowerment Zones are eligible to apply for a State income tax
8credit under the Clean Energy Empowerment Zone Tax Credit Act.
9    (b) Renewable energy enterprises located in Clean Energy
10Empowerment Zones are eligible to receive an investment credit
11subject to the requirements of paragraph (1) of subsection (f)
12of Section 201 of the Illinois Income Tax Act.
13    (c) Renewable energy enterprises are eligible to purchase
14building materials exempt from use and occupation taxes to be
15incorporated into their renewable energy projects within the
16Clean Energy Empowerment Zone when purchased from a retailer
17within the Clean Energy Empowerment Zone under Section 5k-5 of
18the Retailers' Occupation Tax Act.
19    (d) Renewable energy enterprises located in a Clean Energy
20Empowerment Zone that meet the qualifications of Section
219-222.1B of the Public Utilities Act are exempt, in part or in
22whole, from State and local taxes on gas and electricity.
23    (e) Preference for procurements shall be conducted by the
24Illinois Power Agency as described in subparagraph (P) of
25paragraph (1) of subsection (c) of Section 1-75 of the

 

 

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1Illinois Power Agency Act.
 
2    Section 20-30. State incentives regarding public services
3and physical infrastructure.
4    (a) The State Treasurer is authorized and encouraged to
5place deposits of State funds with financial institutions
6doing business in a Clean Energy Empowerment Zone.
7    (b) This Act does not restrict tax incentive financing
8under Division 74.4 of Article 11 of the Illinois Municipal
9Code.
 
10    Section 20-35. Supporting impacted communities.
11    (a) No later than July 1, 2021, the Department shall
12develop a process for accepting applications from units of
13local government included in Clean Energy Empowerment Zones to
14mitigate the impact of an annual reduction of at least 30% in
15the sum of property tax revenue or other direct payments, or
16both, from fossil fuel power plants or coal mines to local
17governments due to the retirement, or reduced operation, of
18the power plant or mine that occurred after January 1, 2016. In
19the case of reduced operation, the proposal may only be
20accepted if the reduction in operation is reasonably expected
21to be permanent. The Department shall accept applications on
22an ongoing basis after beginning the program. Local government
23units may submit applications jointly.
24    (b) The Department shall use available funds from the

 

 

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1Energy Community Reinvestment Fund, subject to the provisions
2of subsection (c) of Section 20-70, to provide payments to
3communities for a period of no longer than 5 years from the
4approval of their proposal, subject to the following
5restrictions:
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

 

 

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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

 

 

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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
22government in Clean Energy Empowerment Zones and provide
23information on the application process for funding under this
24Section and a reasonable estimate of total funding that will
25be available for this program. The Department shall request
26that applications for funding contain the information

 

 

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1necessary for the Department to evaluate the fiscal impact of
2the energy transition on communities located in Clean Energy
3Empowerment Zones; however the Department shall allow for
4reasonable flexibility in the applications to accommodate
5local government units that may have less resources available
6to prepare an application. The Department shall, to the extent
7practical, assist local government units in the application
8process.
9    (d) The Department shall develop rules to implement the
10provisions of this Section.
 
11    Section 20-40. Clean Energy Empowerment Task Forces.
12    (a) The Department and the Board shall work with local
13stakeholders in Clean Energy Empowerment Zones to support the
14convening of local Clean Energy Empowerment Task Forces.
15    (b) Local Clean Energy Empowerment Task Forces shall
16include a broad range of local stakeholders to inform
17transition needs and include, at a minimum, elected
18representatives from municipal and State governments,
19operators of local power plants or mines, multiple
20representatives from community-based organizations, local
21environmental, fish, or wildlife groups, organized labor, and
22the Illinois Environmental Protection Agency.
23    (c) The Board shall put forward requests for proposals for
24third-party facilitators for Task Forces in prioritized Clean
25Energy Empowerment Zones based on need and those facing recent

 

 

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1or near-term retirements of plants or mines.
2    (d) The Department shall work with local Task Forces to
3develop local transition plans that identify economic,
4workforce, and environmental health needs with strategies to
5mitigate energy transition impacts and any accompanying
6funding requests from the Energy Community Reinvestment Fund.
7    (e) As part of developing local transition plans, the
8Department shall work with third-party facilitators and Task
9Force members to gather and incorporate public comment and
10feedback into a finalized transition plan.
11    (f) If the Department determines that a fossil fuel power
12plant owner has failed to engage productively in stakeholder
13meetings and with Clean Energy Empowerment Zone Task Forces,
14the Department shall submit a notification to the Illinois
15Environmental Protection Agency for enforcement actions and
16the assessment of fees as described in Section 9.16 of the
17Environmental Protection Act.
 
18    Section 20-45. Energy Transition Workforce Commission.
19    (a) The Energy Transition Workforce Commission is hereby
20created within the Department of Commerce and Economic
21Opportunity.
22    (b) The Commission shall consist of the following 8
23members:
24        (1) the Director of Commerce and Economic Opportunity,
25    or his or her designee, who shall serve as chairperson;

 

 

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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
9vacancy.
10    (c) Members of the Commission shall serve without
11compensation, but may be reimbursed for necessary expenses
12incurred in the performance of their duties from funds
13appropriated for that purpose. The Department of Commerce and
14Economic Opportunity shall provide administrative support to
15the Commission.
16    (d) Within 120 days after the effective date of this Act,
17the Commission shall produce an Energy Transition Workforce
18Report regarding the anticipated impact of the energy
19transition and a comprehensive set of recommendations to
20address changes to the Illinois workforce during the period of
212020 through 2050, or a later year. The report shall contain
22the following elements, designed to be used for the programs
23created in this Act:
24        (1) Information related to the impact on current
25    workers, including:
26            (A) a comprehensive accounting of all employees

 

 

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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

 

 

HB0804 Engrossed- 141 -LRB102 10881 SPS 16211 b

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
19Department finds that it is prudent to begin before the
20completion of a report, the Department shall coordinate with
21the Commission to create a comprehensive draft plan for
22designing, maintaining, and funding programs established under
23this Act, including the Energy Workforce Development Program
24created under Section 20-50, the Energy Community Development
25Program created under Section 20-55, and the Displaced Energy
26Workers Bill of Rights provided under Section 20-60. The draft

 

 

HB0804 Engrossed- 142 -LRB102 10881 SPS 16211 b

1plan 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
11Department shall publish the draft plan online. The Department
12shall take public comments on the draft plan for a period of no
13less than 45 days and publish the final plan within 30 days
14after the closing of the comment period.
15    (f) The Department shall periodically review its findings
16in the developed reports and make modifications to the report
17and programs based on new findings. The Department shall
18conduct a comprehensive reevaluation of the report, and
19publish a modified version along with a new draft plan, on each
20of the following years following initial publication: 2023;
212027; 2030; 2035; 2040; and any year thereafter which the
22Department determines is necessary or prudent.
 
23    Section 20-50. Energy Workforce Development Program.
24    (a) The purpose of the Energy Workforce Development
25Program is to proactively assist energy workers in their

 

 

HB0804 Engrossed- 143 -LRB102 10881 SPS 16211 b

1search for economic opportunity.
2    (b) The Director of Commerce and Economic Opportunity
3shall design, develop, and administer the Energy Workforce
4Development Program. The Energy Workforce Development Program
5shall 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

 

 

HB0804 Engrossed- 144 -LRB102 10881 SPS 16211 b

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
6Program, the Department shall develop and implement the
7Program 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
24Program is to proactively assist Clean Energy Empowerment Zone
25communities in their search for economic opportunities leading

 

 

HB0804 Engrossed- 145 -LRB102 10881 SPS 16211 b

1up to and after the closure of a fossil fuel power plant,
2nuclear power plant, or coal mine.
3    (b) The Director of Commerce and Economic Opportunity
4shall, subject to appropriation, administer the Energy
5Community Development Program. In administering the Energy
6Community 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
23Program, the Department shall develop and implement the
24Program with the following goals:
25        (1) to increase private sector development in Clean
26    Energy Empowerment Zones;

 

 

HB0804 Engrossed- 146 -LRB102 10881 SPS 16211 b

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
10shall implement the Displaced Energy Workers Bill of Rights
11and shall be responsible for the implementation of the
12Displaced Energy Workers Bill of Rights programs and rights
13created under this Section. The Department shall provide the
14following benefits to displaced energy workers listed in
15paragraphs (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

 

 

HB0804 Engrossed- 147 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 148 -LRB102 10881 SPS 16211 b

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
8of greater than 300 megawatts and the owners of coal mines
9located in Illinois shall be required to comply with the
10requirements set out in this subsection (b). The owners shall
11be 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

 

 

HB0804 Engrossed- 149 -LRB102 10881 SPS 16211 b

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
13review of the Department of Commerce and Economic
14Opportunity's registry of energy workers to determine whether
15any qualified candidates are displaced energy workers before
16making a final hiring decision for a position in State
17employment.
18    (b) The Department of Commerce and Economic Opportunity
19shall inform all State agencies and departments of the
20obligations created by this Section and take steps to ensure
21compliance.
22    (c) Nothing in this Section shall be interpreted to
23indicate that the State is required to hire displaced energy
24workers for any position.
25    (d) No part of this Section shall be interpreted to be in

 

 

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1conflict 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
4of several economic development programs requires a
5consolidated funding source to improve resource efficiency.
6The General Assembly specifically recognizes that properly
7serving communities and workers impacted by the energy
8transition requires that the Department of Commerce and
9Economic Opportunity have access to the resources required for
10the execution of the programs in the Clean Jobs Workforce Hubs
11Program, the Expanding Clean Energy Entrepreneurship Program,
12and the Energy Community Reinvestment Act.
13    The intent of the General Assembly is that the Energy
14Community Reinvestment Fund is able to provide all funding for
15development programs created in the Clean Jobs Workforce Hubs
16Program, the Expanding Clean Energy Entrepreneurship Program,
17and the Energy Community Reinvestment Act, and that no
18additional charge is borne by the taxpayers or ratepayers of
19Illinois absent a deficiency.
20    (b) The Energy Community Reinvestment Fund is created as a
21special fund in the State treasury to be used by the Department
22of Commerce and Economic Opportunity for purposes provided
23under this Section. The Fund shall be used to fund programs
24specified under subsection (c). The objective of the Fund is
25to bring economic development to communities in this State in

 

 

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1a manner that equitably maximizes economic opportunity in all
2communities by increasing efficiency of resource allocation
3across the programs listed in subsection (c). The Department
4shall include a description of its proposed approach to the
5design, administration, implementation, and evaluation of the
6Fund, as part of the Energy Transition Workforce Plan
7described in this Act. Contracts that will be paid with moneys
8in the Fund shall be executed by the Department.
9    (c) The Department shall be responsible for the
10administration of the Fund and shall allocate funding on the
11basis of priorities established in this Section. Each year,
12the Department shall determine the available amount of
13resources in the Fund that can be allocated to the programs
14identified in this Section, and allocate the funding
15accordingly. The Department shall, to the extent practical,
16consider both the short-term and long-term costs of the
17programs and allocate, save, or invest funding so that the
18Department is able to cover both the short-term and long-term
19costs of these programs using projected revenue.
20    The available funding for each year shall be allocated
21from 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

 

 

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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,

 

 

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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.

 

 

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1    (d) No later than June 1, 2021, and by June 1 of each year
2thereafter, the Department shall submit a notification to the
3Illinois Environmental Protection Agency for the purpose of
4implementing the energy community reinvestment fee as
5described in Section 9.16 of the Environmental Protection Act.
6The notification shall include the revenue and spending
7requirements for the programs identified under the Energy
8Community Reinvestment Act for the upcoming fiscal year, as
9well as the projected spending for all program years through
10Fiscal Year 2036. The projected revenue and spending need
11identified for any program year shall be no less than
12$400,000,000 per year for the calendar years 2021 through 2025
13and $200,000,000 per year for all calendar years starting in
142026 that the Illinois electric sector generates greenhouse
15gas emissions.
16    (e) If there is a funding shortfall for items identified
17in paragraphs (1) through (4) of subsection (c), the
18Department shall submit a request for funds to applicable
19electric utilities for funds collected under subsection (k) of
20Section 1-75 of the Illinois Power Agency Act up to
21$25,000,000 per year to cover the shortfall. Upon notification
22by utilities that sufficient funds are available for use under
23the terms of paragraph (7) of subsection (k) of Section 1-75 of
24the Illinois Power Agency Act, the Department shall send an
25invoice to the applicable utilities for the amount requested.
26Upon receipt, the funds shall be deposited into the Energy

 

 

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1Community Reinvestment Fund.
2    (f) The Department shall, on an ongoing basis, seek out
3and apply for funding from alternative sources to cover the
4costs of these programs. Alternative sources may include the
5federal government, other State programs, private foundations,
6donors, or other opportunities for funding. The Department
7shall, as described in subsection (c), use any additional
8funding obtained for these programs to reduce or eliminate any
9costs borne by taxpayers and ratepayers. Nothing in this
10subsection (f) shall be interpreted to reduce or remove the
11revenue requirements obtained by the Illinois Environmental
12Protection Agency as described in subsection (d).
13    (g) Notwithstanding any other law to the contrary, the
14Energy Community Reinvestment Fund is not subject to sweeps,
15administrative chargebacks, or any other fiscal or budgetary
16maneuver that would in any way transfer any amounts from the
17Energy Community Reinvestment Fund into any other fund of the
18State.
19    (h) The Department is granted all powers necessary for the
20implementation of this Section.
 
21    Section 20-75. Administrative review. All final
22administrative decisions, including, but not limited to,
23funding allocation and rules issued by the Department under
24this Act are subject to judicial review under the
25Administrative Review Law. No action may be commenced under

 

 

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1this Section prior to 60 days after the complainant has given
2notice 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
5the Clean Energy Empowerment Zone Tax Credit Act. References
6in 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
10located within the State of Illinois and has applied for an
11income tax credit through a program under this Act.
12    "Basic wage" means compensation for employment that meets
13the prevailing wage standards as defined by the Department.
14    "Certificate" means the tax credit certificate issued by
15the Department under Section 25-125.
16    "Certificate of eligibility" means the certificate issued
17by the Department under Section 25-110.
18    "Credit" means the amount awarded by the Department to an
19applicant by issuance of a certificate under Section 25-125
20for each new full-time equivalent employee hired or job
21created.
22    "Department" means the Department of Commerce and Economic

 

 

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1Opportunity.
2    "Director" means the Director of Commerce and Economic
3Opportunity.
4    "Former energy worker" means an individual who is
5employed, or was employed, at a fossil fuel power plant,
6nuclear power plant, or coal mine, and is listed in the
7registry of energy workers developed by the Department of
8Commerce and Economic Opportunity pursuant to Section 20-50 of
9the Energy Community Reinvestment Act.
10    "Full-time employee" means an individual who is employed
11at a prevailing wage for at least 35 hours each week, and
12provided standard worker benefits, or who renders any other
13standard of service generally accepted by industry custom or
14practice as full-time employment. An individual for whom a W-2
15is issued by a Professional Employer Organization is a
16full-time employee if he or she is employed in the service of
17the applicant for a basic wage for at least 35 hours each week
18or renders any other standard of service generally accepted by
19industry custom or practice as full-time employment. For the
20purposes of this Act, such an individual shall be considered a
21full-time employee of the applicant.
22    "Incentive period" means the period beginning on July 1
23and ending on June 30 of the following year. The first
24incentive period shall begin on July 1, 2021 and the last
25incentive period shall end on June 30, 2040.
26    "New employee" means a full-time employee:

 

 

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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
26that is not complying with the requirements of this Act, the

 

 

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1day following the last date upon which the taxpayer was in
2compliance with the requirements of this Act, as determined by
3the Director under Section 25-135.
4    "Professional Employer Organization" has the same meaning
5as ascribed to that term under Section 5-5 of the Economic
6Development for a Growing Economy Tax Credit Act.
7"Professional Employer Organization" does not include a day
8and temporary labor service agency regulated under the Day and
9Temporary Labor Services Act.
10    "Related member" means a person that, with respect to the
11applicant during any portion of the incentive period, is any
12one 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

 

 

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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;

 

 

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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,
18in addition to those powers granted under the Civil
19Administrative Code of Illinois, is granted and shall have all
20the powers necessary or convenient to carry out and effectuate
21the purposes and provisions of this Act, including, but not
22limited 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

 

 

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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

 

 

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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

 

 

HB0804 Engrossed- 164 -LRB102 10881 SPS 16211 b

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
8graduate of training programs as established under the Clean
9Jobs Workforce and Contractor Equity Act as a new employee
10during the incentive period may apply for a certificate of
11eligibility for the credit with respect to that position on or
12after the date of hire of the new employee. The date of hire
13shall be the first day on which the employee begins providing
14services for basic wage compensation.
15    (b) An applicant may apply for a certificate of
16eligibility for the credit for more than one new employee on or
17after the date of hire of each qualifying new employee.
18    (c) After receipt of an application under this Section,
19the Department shall issue a certificate of eligibility to the
20applicant 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

 

 

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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
8applicant is entitled to a credit against payment of taxes
9withheld 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
24to further job creation.
25    (c) The credit shall be claimed for the first calendar

 

 

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1year ending on or after the date on which the certificate is
2issued by the Department.
3    (d) The net increase in full-time Illinois employees,
4measured on an annual full-time equivalent basis, shall be the
5total number of full-time Illinois employees of the applicant
6on the final day of the incentive period, minus the number of
7full-time Illinois employees employed by the employer on the
8first day of that same incentive period. For purposes of the
9calculation, an employer that begins doing business in this
10State during the incentive period, as determined by the
11Director, shall be treated as having zero Illinois employees
12on the first day of the incentive period.
13    (e) The net increase in the number of full-time Illinois
14employees of the applicant under subsection (d) must be
15sustained continuously for at least 12 months, starting with
16the date of hire of a new employee during the incentive period.
17Eligibility for the credit does not depend on the continuous
18employment of any particular individual. For purposes of this
19subsection (e), if a new employee ceases to be employed before
20the completion of the 12-month period for any reason, the net
21increase in the number of full-time Illinois employees shall
22be treated as continuous if a different new employee is hired
23as a replacement within a reasonable time for the same
24position. The new employees must be hired to fill positions
25that the applicant reasonably anticipates will be available
26for the new employee as a long-term position. For the purposes

 

 

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1of this subsection (e), "long-term position" means a position
2that will be available for 3 years or longer.
3    (f) The Department shall adopt rules to enable an
4applicant for which a Professional Employer Organization has
5been contracted to issue W-2s and make payment of taxes
6withheld under Section 704A of the Illinois Income Tax Act for
7new employees to retain the benefit of tax credits to which the
8applicant is otherwise entitled under this Act.
 
9    Section 25-120. Maximum amount of credits allowed. The
10Department shall limit the monetary amount of credits awarded
11under this Act to no more than $18,000,000 annually during the
12incentive period. If applications for a greater amount are
13received, credits shall be allowed on a first-come,
14first-served basis, based on the date on which each properly
15completed application for a certificate of eligibility is
16received by the Department. If more than one certificate of
17eligibility is received on the same day, the credits shall be
18awarded based on the time of submission for that particular
19day.
 
20    Section 25-125. Application for award of tax credit; tax
21credit certificate.
22    (a) On or after the conclusion of the 12-month period, or
23other period, after a new employee has been hired, for the
24purposes of subsection (a) of Section 25-115, an applicant

 

 

HB0804 Engrossed- 168 -LRB102 10881 SPS 16211 b

1shall file with the Department an application for award of a
2credit. 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
24the conclusion of the 12-month period after a new employee was
25hired, an application filed more than 90 days after the
26earliest date on which it could have been filed shall not be

 

 

HB0804 Engrossed- 169 -LRB102 10881 SPS 16211 b

1awarded any credit if, prior to the date it is filed, the
2Department has received applications under this Section for
3credits totaling more than $20,000,000.
4    (c) The Department shall issue a certificate to each
5applicant awarded a credit under this Act. The certificate
6shall 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
14the Department of Revenue. An applicant claiming a credit
15under this Act shall submit to the Department of Revenue a copy
16of each certificate issued under Section 25-125 with the first
17tax return for which the credit shown on the certificate is
18claimed. Failure to submit a copy of the certificate with the
19applicant's tax return shall not invalidate a claim for a
20credit.
 
21    Section 25-135. Administrative review.
22    (a) If the Director determines that an applicant who has
23received a credit under this Act is not complying with the
24requirements of this Act, the Director shall provide notice to

 

 

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1the applicant of the alleged noncompliance, and allow the
2taxpayer a hearing under the provisions of the Illinois
3Administrative Procedure Act. If, after the notice and
4hearing, the Director determines that noncompliance exists,
5the Director shall issue to the Department of Revenue notice
6to that effect, and state the date of noncompliance.
7    (b) All final administrative decisions, including, but not
8limited to, funding allocation and rules issued by the
9Department under this Act are subject to judicial review under
10the Administrative Review Law. No action may be commenced
11under this Section prior to 60 days after the complainant has
12given notice in writing of the action to the Department.
 
13    Section 25-140. Rules. The Department may adopt rules
14necessary to implement this Part 1. The rules may provide for
15recipients of credits under this Part 1 to be charged fees to
16cover 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
20Department entered into for a tax credit awarded under Section
2125-210.
22    "Applicant" means a taxpayer operating a renewable energy
23enterprise, as determined under the Energy Community

 

 

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1Reinvestment Act, located within or that the renewable energy
2enterprise plans to locate within a Clean Energy Empowerment
3Zone. "Applicant" does not include a taxpayer who closes or
4substantially reduces an operation at one location in this
5State and relocates substantially the same operation to a
6location in a Clean Energy Empowerment Zone. A taxpayer is not
7prohibited from expanding its operations at a location in a
8Clean Energy Empowerment Zone, provided that existing
9operations of a similar nature located within the State are
10not closed or substantially reduced. A taxpayer is also not
11prohibited from moving operations from one location in this
12State to a Clean Energy Empowerment Zone for the purpose of
13expanding the operation provided that the Department
14determines that expansion cannot reasonably be accommodated
15within the municipality in which the business is located, or
16in the case of a business located in an incorporated area of
17the county, within the county in which the business is
18located, after conferring with the chief elected official of
19the municipality or county and taking into consideration any
20evidence offered by the municipality or county regarding the
21ability to accommodate expansion within the municipality or
22county.
23    "Board" means the Clean Energy Empowerment Zone Board
24created under Section 20-20 of the Illinois Energy Community
25Reinvestment Act.
26    "Credit" means the amount agreed to between the Department

 

 

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1and the Applicant under this Act, but not to exceed the lesser
2of: (1) the sum of (i) 50% of the incremental income tax
3attributable to new employees at the applicant's project and
4(ii) 10% of the training costs of new employees; or (2) 100% of
5the incremental income tax attributable to new employees at
6the applicant's project. If the project is located in an
7underserved area, then the amount of the credit may not exceed
8the lesser of: (1) the sum of (i) 75% of the incremental income
9tax attributable to new employees at the applicant's project
10and (ii) 10% of the training costs of new employees; or (2)
11100% of the incremental income tax attributable to new
12employees at the applicant's project. If an applicant agrees
13to hire the required number of new employees, then the maximum
14amount of the credit for that applicant may be increased by an
15amount not to exceed 25% of the incremental income tax
16attributable to retained employees at the applicant's project;
17provided that, in order to receive the increase for retained
18employees, the applicant must provide the additional evidence
19required under paragraph (3) of subsection (c) of Section
2025-215.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Director" means the Director of Commerce and Economic
24Opportunity.
25    "Full-time employee" means an individual who is employed
26for consideration for at least 35 hours each week or who

 

 

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1renders any other standard of service generally accepted by
2industry custom or practice as full-time employment. An
3individual for whom a W-2 is issued by a Professional Employer
4Organization is a full-time employee if employed in the
5service of the applicant for consideration for at least 35
6hours each week or who renders any other standard of service
7generally accepted by industry custom or practice as full-time
8employment to the applicant.
9    "Incremental income tax" means the total amount withheld
10during the taxable year from the compensation of new employees
11and, if applicable, retained employees under Article 7 of the
12Illinois Income Tax Act arising from employment at a project
13that is the subject of an agreement.
14    "New employee" means a full-time employee first employed
15by a taxpayer in the project that is the subject of an
16agreement and who is hired after the taxpayer enters into the
17agreement.
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

 

 

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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
7employee may be considered a new employee under the agreement
8if the employee performs a job that was previously performed
9by an employee who was: (i) treated under the agreement as a
10new employee; and (ii) promoted by the taxpayer to another
11job.
12    Notwithstanding any other provisions of this Section, the
13Department may award a credit to an applicant with respect to
14an employee hired prior to the date of the agreement if: (i)
15the applicant is in receipt of a letter from the Department
16stating an intent to enter into a credit agreement; (ii) the
17letter described in item (i) of this paragraph is issued by the
18Department not later than 15 days after the effective date of
19this Act; and (iii) the employee was hired after the date the
20letter described in item (i) of this paragraph was issued.
21    "Pass-through entity" means an entity that is exempt from
22the tax under subsection (b) or (c) of Section 205 of the
23Illinois Income Tax Act.
24    "Related member" means a person that, with respect to the
25taxpayer during any portion of the taxable year, is any one of
26the following:

 

 

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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

 

 

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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

 

 

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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
5energy, geothermal energy, bioenergy, or hydrogen fuel and
6cells.
7    "Renewable energy production facility" means a facility
8owned by a company that is engaged in and used such a facility
9for the production of solar energy, wind energy, water energy,
10geothermal energy, bioenergy, or hydrogen fuel and cells.
11    "Taxpayer" means an individual, corporation, partnership,
12or other entity that has any Illinois income tax liability.
13    "Underserved area" means a geographic area that meets one
14or 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

 

 

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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,
4in addition to those powers granted under the Civil
5Administrative Code of Illinois and Part 1 of this Act, is
6granted and has all the powers necessary or convenient to
7carry out and effectuate the purposes and provisions of this
8Act, including, but not limited to, power and authority to:
9    (a) Adopt rules deemed necessary and appropriate for the
10administration of programs; establish forms for applications,
11notifications, contracts, or any other agreements; and accept
12applications at any time during the year.
13    (b) Provide and assist taxpayers pursuant to the
14provisions of this Act, and cooperate with taxpayers that are
15parties to agreements to promote, foster, and support economic
16development, capital investment, and job creation or retention
17within the Clean Energy Empowerment Zone.
18    (c) Enter into agreements and memoranda of understanding
19for participation of and engage in cooperation with agencies
20of the federal government, units of local government,
21universities, research foundations or institutions, regional
22economic development corporations, or other organizations for
23the purposes of this Act.
24    (d) Gather information and conduct inquiries, in the
25manner and by the methods as it deems desirable, including,

 

 

HB0804 Engrossed- 179 -LRB102 10881 SPS 16211 b

1without limitation, gathering information with respect to
2applicants for the purpose of making any designations or
3certifications necessary or desirable or to gather information
4to assist the Board with any recommendation or guidance in the
5furtherance of the purposes of this Act.
6    (e) Establish, negotiate and effectuate any term,
7agreement or other document with any person, necessary or
8appropriate to accomplish the purposes of this Act, and
9consent, subject to the provisions of any agreement with
10another party, to the modification or restructuring of any
11agreement to which the Department is a party.
12    (f) Fix, determine, charge, and collect any premiums,
13fees, charges, costs, and expenses from applicants, including,
14without limitation, any application fees, commitment fees,
15program fees, financing charges, or publication fees as deemed
16appropriate to pay expenses necessary or incident to the
17administration, staffing, or operation in connection with the
18Department's or Board's activities under this Act, or for
19preparation, implementation, and enforcement of the terms of
20the agreement, or for consultation, advisory and legal fees,
21and other costs. All fees and expenses incident thereto shall
22be the responsibility of the applicant.
23    (g) Provide for sufficient personnel to permit
24administration, staffing, operation, and related support
25required to adequately discharge its duties and
26responsibilities described in this Act from funds made

 

 

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1available through charges to applicants or from funds as may
2be appropriated by the General Assembly for the administration
3of this Act.
4    (h) Require applicants, upon written request, to issue any
5necessary authorization to the appropriate federal, State, or
6local authority for the release of information concerning a
7project being considered under the provisions of this Act,
8with the information requested to include, but not be limited
9to, financial reports, returns, or records relating to the
10taxpayer or its project.
11    (i) Require that a taxpayer shall at all times keep proper
12books of record and account in accordance with generally
13accepted accounting principles consistently applied, with the
14books, records, or papers related to the agreement in the
15custody or control of the taxpayer open for reasonable
16Department inspection and audits, and including, without
17limitation, the making of copies of the books, records, or
18papers, and the inspection or appraisal of any of the taxpayer
19or project assets.
20    (j) Take whatever actions are necessary or appropriate to
21protect the State's interest in the event of bankruptcy,
22default, foreclosure, or noncompliance with the terms and
23conditions of financial assistance or participation required
24under this Act, including the power to sell, dispose, lease,
25or rent, upon terms and conditions determined by the Director
26to be appropriate, real or personal property that the

 

 

HB0804 Engrossed- 181 -LRB102 10881 SPS 16211 b

1Department 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
4taxpayer is entitled to a credit against or, as described in
5subsection (g), a payment toward taxes imposed pursuant to
6subsections (a) and (b) of Section 201 of the Illinois Income
7Tax Act that may be imposed on the taxpayer for a taxable year
8beginning on or after January 1, 2019, if the taxpayer is
9awarded a credit by the Department under this Act for that
10taxable year.
11    (b) The Department shall make credit awards under this Act
12to foster job creation and the development of renewable energy
13in Clean Energy Empowerment Zones.
14    (c) A person that proposes a project to create new jobs and
15to invest in the development of a renewable energy production
16facility in a Clean Energy Empowerment Zone must enter into an
17agreement with the Department for the credit under this Act.
18    (d) The credit shall be claimed for the taxable years
19specified in the agreement.
20    (e) The credit shall not exceed the incremental income tax
21attributable to the project that is the subject of the
22agreement.
23    (f) Nothing herein shall prohibit a tax credit award to an
24applicant that uses a Professional Employer Organization if
25all other award criteria are satisfied.

 

 

HB0804 Engrossed- 182 -LRB102 10881 SPS 16211 b

1    (g) A pass-through entity that has been awarded a credit
2under this Act, its shareholders, or its partners may treat
3some or all of the credit awarded under this Act as a tax
4payment for purposes of the Illinois Income Tax Act. In no
5event shall the amount of the award credited under this Act
6exceed the Illinois income tax liability of the pass-through
7entity or its shareholders or partners for the taxable year.
8    For the purposes of this subsection (g), "tax payment"
9means a payment as described in Article 6 or Article 8 of the
10Illinois Income Tax Act or a composite payment made by a
11pass-through entity on behalf of any of its shareholders or
12partners to satisfy such shareholders' or partners' taxes
13imposed pursuant to subsections (a) and (b) of Section 201 of
14the Illinois Income Tax Act.
 
15    Section 25-215. Application for a project to create and
16retain new jobs and to develop renewable energy.
17    (a) Any renewable energy enterprise proposing a project to
18build a renewable energy production facility located or
19planned to be located in a Clean Energy Empowerment Zone may
20request consideration for designation of its project, by
21formal written letter of request or by formal application to
22the Department, in which the applicant states its intent to
23make at least a specified level of investment and intends to
24hire or retain a specified number of full-time employees at a
25designated location in Illinois. As circumstances require, the

 

 

HB0804 Engrossed- 183 -LRB102 10881 SPS 16211 b

1Department may require a formal application from an applicant
2and a formal letter of request for assistance.
3    (b) In order to qualify for credits under this Act, an
4applicant'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
24review the application, make inquiries, and conduct studies in
25the manner and by the methods as it deems desirable, and
26consult with and make a recommendation to the Clean Energy

 

 

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1Empowerment Zone Board created under the Energy Community
2Reinvestment Act. The Department and the Board shall make its
3recommendations and approvals based on whether they determine
4that 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.

 

 

HB0804 Engrossed- 185 -LRB102 10881 SPS 16211 b

1    (d) After approval by the Board, the Department may enter
2into an agreement with the applicant.
 
3    Section 25-225. Relocation of jobs to Clean Energy
4Empowerment Zone. A taxpayer is not entitled to claim the
5credit provided by this Act with respect to any jobs that the
6taxpayer relocates from one site in Illinois to another site
7in a Clean Energy Empowerment Zone. A taxpayer with respect to
8a qualifying project certified under the Corporate
9Headquarters Relocation Act, however, is not subject to the
10requirements of this Section, but is nevertheless considered
11an applicant for purposes of this Act. Moreover, any full-time
12employee of an eligible renewable energy enterprise relocated
13to a Clean Energy Empowerment Zone in connection with that
14qualifying project is deemed to be a new employee for purposes
15of this Act. Determinations under this Section shall be made
16by the Department.
 
17    Section 25-230. Determination of the amount of credit. In
18determining the amount of credit that should be awarded, the
19Board shall provide guidance on, and the Department shall take
20into 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;

 

 

HB0804 Engrossed- 186 -LRB102 10881 SPS 16211 b

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
19of the credit awarded under this Act. The duration of the
20credit may not exceed 10 taxable years. The credit may be
21stated as a percentage of the incremental income tax
22attributable to the applicant's project and may include a
23fixed dollar limitation. An agreement for the credit must be
24finalized and signed by all parties while the area in which the
25project is located is designated a Clean Energy Empowerment

 

 

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1Zone. The credit may last longer than the applicable Clean
2Energy Empowerment Zone designation. Agreements entered into
3prior to the de-designation of a Clean Energy Empowerment Zone
4shall be honored for the length of the agreement.
5    (b) Notwithstanding subsection (a), and except as the
6credit may be applied in a carryover year as otherwise
7provided in this subsection (b), the credit may be applied
8against the State income tax liability in more than 10 taxable
9years, but not in more than 15 taxable years for an eligible
10green energy enterprise that: (i) qualifies under this Act and
11the Corporate Headquarters Relocation Act and has in fact
12undertaken a qualifying project within the time frame
13specified by the Department of Commerce and Economic
14Opportunity under that Act; and (ii) applies against its State
15income tax liability, during the entire 15-year period, no
16more than 60% of the maximum credit per year that would
17otherwise be available under this Act.
18    Any credit that is unused in the year the credit is
19computed may be carried forward and applied to the tax
20liability of the 5 taxable years following the excess credit
21year. The credit shall be applied to the earliest year for
22which there is a tax liability. If there are credits from more
23than one tax year that are available to offset a liability, the
24earlier credit shall be applied first.
 
25    Section 25-240. Contents of agreements with applicants.

 

 

HB0804 Engrossed- 188 -LRB102 10881 SPS 16211 b

1The Department shall enter into an agreement with an applicant
2that is awarded a credit under this Act.
 
3    Section 25-245. Certificate of verification; submission to
4the Department of Revenue. A taxpayer claiming a credit under
5this Act shall submit to the Department of Revenue a copy of
6the Director's certificate of verification under this Act for
7the taxable year. Failure to submit a copy of the certificate
8with the taxpayer's tax return shall not invalidate a claim
9for a credit.
 
10    Section 25-250. Supplier diversity. Each taxpayer claiming
11a credit under this Act shall, no later than April 15 of each
12taxable year for which the taxpayer claims a credit under this
13Act, submit to the Department of Commerce and Economic
14Opportunity an annual report containing the information
15described in subsections (b), (c), (d), and (e) of Section
165-117 of the Public Utilities Act. Those reports shall be
17submitted in the form and manner required by the Department of
18Commerce and Economic Opportunity.
 
19    Section 25-255. Pass-through entity. The shareholders or
20partners of a taxpayer that is a pass-through entity shall be
21entitled to the credit allowed under the agreement. The credit
22is in addition to any credit to which a shareholder or partner
23is otherwise entitled under a separate agreement under this

 

 

HB0804 Engrossed- 189 -LRB102 10881 SPS 16211 b

1Act. A pass-through entity and a shareholder or partner of the
2pass-through entity may not claim more than one credit under
3the same agreement.
 
4    Section 25-260. Rules. The Department may adopt rules
5necessary to implement this Part 2. The rules may provide for
6recipients of credits under this Part 2 to be charged fees to
7cover administrative costs of the tax credit program. Fees
8collected shall be deposited into the Energy Community
9Reinvestment Fund.
 
10    Section 25-265. Program terms and conditions.
11    (a) Any documentary materials or data made available or
12received by any member of a board or any agent or employee of
13the Department shall be deemed confidential and shall not be
14deemed public records to the extent that the materials or data
15consists of trade secrets, commercial or financial information
16regarding the operation of the business conducted by the
17applicant for or recipient of any tax credit under this Act, or
18any information regarding the competitive position of a
19business in a particular field of endeavor.
20    (b) Nothing in this Act shall be construed as creating any
21rights in any applicant to enter into an agreement or in any
22person to challenge the terms of any agreement.
 
23
Article 30. Coal Severance Fee Act

 

 

 

HB0804 Engrossed- 190 -LRB102 10881 SPS 16211 b

1    Section 30-1. Short title. This Article may be cited as
2the 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,
8association, joint stock company, joint adventure, public or
9private corporation, limited liability company, or a receiver,
10executor, trustee, guardian, or other representative appointed
11by 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.

 

 

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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
5imposed under this Act shall register with the Department.
6Application for a certificate of registration shall be made to
7the Department upon forms furnished by the Department and
8shall contain any reasonable information the Department may
9require. Upon receipt of the application for a certificate of
10registration in proper form, the Department shall issue to the
11applicant a certificate of registration.
12    (e) Inspection of records by Department, subpoena power,
13contempt. For the purpose of computing the amount of the tax
14due under this Section, the Department has the following
15powers:
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

 

 

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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
5Department 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
17the month after the month during which the coal is severed. The
18Department may require any additional report or information it
19deems necessary for the proper administration of this Act.
20    (h) Returns due under this Section shall be filed
21electronically in the manner prescribed by the Department.
22Taxpayers shall make all payments of the tax to the Department
23under this Act by electronic funds transfer unless, as
24provided by rule, the Department grants an exception upon
25petition of a taxpayer. Returns must be accompanied by
26appropriate computer generated magnetic media supporting

 

 

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1schedule data in the format required by the Department,
2unless, as provided by rule, the Department grants an
3exception upon petition of a taxpayer.
4    (i) Incorporation by reference. All of the provisions of
5Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, 13 6a, 6b,
66c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
7Occupation Tax Act which are not inconsistent with this Act,
8and all provisions of the Uniform Penalty and Interest Act
9shall apply, as far as practicable, to the subject matter of
10this Act to the same extent as if such provisions were included
11herein.
12    (j) Rulemaking. The Department is hereby authorized to
13adopt rules as may be necessary to administer and enforce the
14provisions of this Act.
15    (k) Distribution of proceeds. All moneys received by the
16Department under this Act shall be paid into the Energy
17Community Reinvestment Fund.
 
18
Article 35. Building Energy Performance Standard Act

 
19    Section 35-1. Short title. This Article may be cited as
20the Building Energy Performance Standard Act. References in
21this Article to "this Act" mean this Article.
 
22    Section 35-5. Building Energy Performance Standard.
23    (a) The purpose of the Illinois Building Energy

 

 

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1Performance Standard is to decrease energy consumption, reduce
2greenhouse gas emissions from existing buildings, and increase
3economic 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,
13the Illinois Office of Energy shall establish a Building
14Energy Performance Standard Task Force to advise and provide
15technical assistance and recommendations for the Illinois
16Building 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,
25or their designees, from the following entities:
26        (i) the Director of the Illinois Environmental

 

 

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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;

 

 

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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
7processes, 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

 

 

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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

 

 

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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
13Illinois 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
21January 1, 2023, create, and make publicly available, a
22strategic implementation plan for State-owned buildings
23complying with the Illinois Building Energy Performance
24Standard.
25    (f) The Illinois Office of Energy shall post the strategic
26implementation plan on its website.
 

 

 

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1
Article 40. Public Utilities Intervenor Compensation Act

 
2    Section 40-1. Short title. This Article may be cited as
3the Public Utilities Intervenor Compensation Act. References
4in 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

 

 

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1determined by the Commission, of reasonable advocate's fees,
2reasonable expert witness fees, and other reasonable costs of
3preparation for and participation in a proceeding, and
4includes the fees and costs of obtaining an award under this
5article and of obtaining judicial review, if any.
6    "Contribution" means that the customer's presentation has
7met 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

 

 

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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
23governmental agency, or any publicly owned public utility.
24"Customer" must be a nonprofit organization.
25    "Environmental justice communities" means the definition
26of that term based on existing methodologies and findings,

 

 

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1used and as may be updated by the Illinois Power Agency and its
2program administrator in the Illinois Solar for All Program.
3    "Expert witness fees" means recorded or billed costs
4incurred by a customer for an expert witness.
5    "Other reasonable costs" means reasonable out-of-pocket
6expenses directly incurred by a customer that are directly
7related to the contentions or recommendations made by the
8customer that resulted in a contribution.
9    "Party" means any interested party, respondent public
10utility, or Commission staff in a hearing or proceeding.
11    "Public utility" has the meaning ascribed to it in the
12Public Utilities Act.
13    "Significant financial hardship" means either that the
14customer cannot afford, without undue hardship, to pay the
15costs of effective participation, including advocate's fees,
16expert witness fees, and other reasonable costs of
17participation, or that, in the case of a group or
18organization, the economic interest of the individual members
19of the group or organization is small in comparison to the
20costs of effective participation in the proceeding.
 
21    Section 40-15. Intervenor compensation awards. The
22Commission shall award reasonable advocate's fees, reasonable
23expert witness fees, and other reasonable costs of preparation
24for and participation in a hearing or proceeding to any
25customer that complies with the procedures in Section 40-20

 

 

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1and 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
9article shall, within 30 days after the prehearing conference
10is held, file and serve on all parties to the proceeding a
11notice of intent to claim compensation. The Commission shall
12determine 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
22include 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

 

 

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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
6customer that participation in the hearing or proceeding would
7pose a significant financial hardship. Alternatively, such a
8showing shall be included in the request submitted pursuant to
9subsection (c).
10    (3) Within 15 days after service of the notice of intent to
11claim compensation, the administrative law judge may direct
12the staff, and may permit any other interested party, to file a
13statement responding to the notice.
14    (b)(1) If the customer's showing of significant financial
15hardship was included in the notice filed pursuant to
16subsection (a), the administrative law judge shall issue
17within 30 days thereafter a preliminary ruling addressing
18whether the customer is eligible for an award of compensation.
19The ruling shall address whether a showing of significant
20financial hardship has been made. A finding of significant
21financial hardship shall create a rebuttable presumption of
22eligibility for compensation in other Commission proceedings
23commencing within 2 years after the date of that finding.
24    (2) The administrative law judge may, in any event, issue
25a ruling addressing issues raised by the notice of intent to
26claim compensation. The ruling may point out similar

 

 

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1positions, areas of potential duplication in showings,
2unrealistic expectation for compensation, and any other matter
3that may affect the customer's ultimate claim for
4compensation. Failure of the ruling to point out similar
5positions or potential duplication or any other potential
6impact on the ultimate claim for compensation shall not imply
7approval of any claim for compensation. A finding of
8significant financial hardship in no way ensures compensation.
9Similarly, the failure of the customer to identify a specific
10issue in the notice of intent or to precisely estimate
11potential compensation shall not preclude an award of
12reasonable compensation if a contribution is made.
13    (c) Following issuance of a final order or decision by the
14Commission in the hearing or proceeding, a customer that has
15been found, pursuant to subsection (b), to be eligible for an
16award of compensation may file within 60 days a request for an
17award. The request shall include at a minimum a detailed
18description of services and expenditures and a description of
19the customer's contribution to the hearing or proceeding.
20Within 30 days after service of the request, the Commission
21staff may file, and any other party may file, a response to the
22request.
23    (d) The Commission may audit the records and books of the
24customer to the extent necessary to verify the basis for the
25award. The Commission shall preserve the confidentiality of
26the customer's records in making its audit. Within 20 days

 

 

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1after completion of the audit, if any, the Commission shall
2direct that an audit report shall be prepared and filed. Any
3other party may file a response to the audit report within 20
4days thereafter.
5    (e) Within 75 days after the filing of a request for
6compensation pursuant to subsection (c), or within 50 days
7after the filing of an audit report, whichever occurs later,
8the Commission shall issue a decision that determines whether
9or not the customer has made a contribution to the final order
10or decision in the hearing or proceeding. If the Commission
11finds that the customer requesting compensation has made a
12contribution, the Commission shall describe this contribution
13and shall determine the amount of compensation to be paid.
 
14    Section 40-25. Calculation of intervenor compensation
15awards. The computation of compensation awarded shall take
16into consideration the market rates paid to persons of
17comparable training and experience who offer similar services.
18The compensation awarded may not exceed the comparable market
19rate for services paid by the Commission or the public
20utility, whichever is greater, to persons of comparable
21training and experience who are offering similar services.
 
22    Section 40-30. Intervenor compensation payments and cost
23recovery. An award made under this Act shall be paid by the
24public utility that is the subject of the hearing,

 

 

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1investigation, or proceeding, as determined by the Commission,
2within 30 days. Notwithstanding any other law, an award paid
3by a public utility pursuant to this Act shall be allowed by
4the Commission as an expense for the purpose of establishing
5rates of the public utility.
 
6    Section 40-35. Denial of intervenor compensation payments.
7The Commission shall deny any award to any customer that
8attempts to delay or obstruct the orderly and timely
9fulfillment of the Commission's responsibilities.
 
10    Section 40-40. Illinois Commerce Commission Intervenor
11Compensation Fund. The Illinois Commerce Commission Intervenor
12Compensation Fund is hereby created as a special fund in the
13State treasury. The Commission shall administer the Illinois
14Commerce Commission Intervenor Compensation Fund for use as
15described in Section 40-45. An electric public utility with
163,000,000 or more retail customers shall contribute $450,000
17to the Illinois Commerce Commission Intervenor Compensation
18Fund within 60 days after the effective date of this Act. A
19combined electric and gas public utility serving fewer than
203,000,000 but more than 500,000 retail customers shall
21contribute $225,000 to the Illinois Commerce Commission
22Intervenor Compensation Fund within 60 days after the
23effective date of this Act. A gas public utility with
242,000,000 or more retail customers that is not a combined

 

 

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1electric and gas public utility shall contribute $225,000 to
2the Illinois Commerce Commission Intervenor Compensation Fund
3within 60 days after the effective date of this Act. A gas
4public utility with fewer than 2,000,000 retail customers but
5more than 300,000 retail customers that is not a combined
6electric and gas public utility shall contribute $80,000 to
7the Illinois Commerce Commission Intervenor Compensation Fund
8within 60 days after the effective date of this Act. A gas
9public utility with fewer than 300,000 retail customers that
10is not a combined electric and gas public utility shall
11contribute $20,000 to the Illinois Commerce Commission
12Intervenor Compensation Fund within 60 days after the
13effective date of this Act.
 
14    Section 40-45. Intervenor compensation pre-proceeding
15grants.
16    (a) Any customer that applies for intervenor compensation
17payments under subsection (a) of Section 40-20 may also, at
18the same time, apply for a grant from the Illinois Commerce
19Commission Intervenor Compensation Fund for the costs
20described in its notice of intent to claim compensation. A
21final decision regarding the grant shall be made at the time of
22the preliminary ruling on intervenor compensation eligibility
23in subsection (b) of Section 40-20. No pre-proceeding grant
24shall be given to organizations who are not found to be
25eligible for intervenor compensation. If granted, payments

 

 

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1must be made within 30 days to facilitate participation in the
2proceeding. At the time of the final decision regarding the
3grant, the Commission shall notify the customer of the
4requirements to be awarded intervenor compensation and that,
5if the customer does not prevail in receiving intervenor
6compensation of at least the amount of the grant, the customer
7will be expected to reimburse the Illinois Commerce Commission
8Intervenor Compensation Fund for the remaining grant moneys on
9a regular schedule within 5 years of the end of the proceeding.
10After notification, the customer may accept or deny receipt of
11the grant.
12    (b) To apply for a grant from the Illinois Commerce
13Commission Intervenor Compensation Fund, the customer must
14describe why prepayment of intervenor compensation is
15necessary for it to participate in the proceeding and show
16financial hardship sufficient that the customer cannot
17reasonably be expected to participate without receiving a
18grant.
19    (c) If a customer that receives a grant from the Illinois
20Commerce Commission Intervenor Compensation Fund subsequently
21prevails in receiving intervenor compensation, the public
22utility paying intervenor compensation must reimburse the fund
23for the amount of the grant. If the intervenor compensation
24amount is larger than the grant, then the balance shall be paid
25to the customer. If the amount of intervenor compensation is
26less than the grant, then the customer must reimburse the

 

 

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1Illinois Commerce Commission Intervenor Compensation Fund for
2the difference with payments made on a regular schedule within
35 years after the end of the proceeding.
4    (d) If a customer that receives a grant from the Illinois
5Commerce Commission Intervenor Compensation Fund does not
6subsequently prevail in receiving intervenor compensation,
7then the customer must reimburse the Illinois Commerce
8Commission Intervenor Compensation Fund for the amount of the
9grant with payments made on a regular schedule within 5 years
10of the end of the proceeding.
 
11    Section 40-50. Rulemaking. The Commission shall adopt any
12rules necessary to implement this Act. The Commission has the
13authority to initiate an emergency rulemaking to adopt rules
14regarding intervenor compensation if necessary to allow
15customer 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
18Electric Vehicle Charging Act. References in this Article to
19"this Act" mean this Article.
 
20    Section 45-5. Legislative intent. Electric vehicles are an
21important tool to fight the climate crisis, tackle air
22pollution, and provide safe, clean, and affordable personal

 

 

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1transportation. The State should encourage urgent and
2widespread adoption of electric vehicles. Since most current
3electric vehicle owners are single-family homeowners who
4charge at home, providing access to home charging for those in
5multi-unit dwellings is crucial to wider electric vehicle
6adoption. This includes condominium unit owners and renters,
7regardless of parking space ownership and regardless of
8income. Therefore, a significant portion of parking spaces in
9new and renovated residential and commercial developments must
10be capable of electric vehicle charging. Additionally, renters
11and condominium unit owners must be able to install charging
12equipment for their cars under reasonable conditions.
 
13    Section 45-10. Applicability. This Act applies to new or
14renovated residential or nonresidential buildings that have
15parking spaces and are constructed or renovated after the
16effective date of this Act.
 
17    Section 45-15. Definitions. As used in this Act:
18    "Association" has the meaning set forth in subsection (o)
19of Section 2 of the Condominium Property Act or Section 1-5 of
20the Common Interest Community Association Act, as applicable.
21    "Electric vehicle" means a vehicle that is powered by an
22electric motor, runs on a rechargeable battery, and must be
23plugged in to charge or charged wirelessly.
24    "Electric vehicle capable" means having an installed

 

 

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1electrical panel capacity with a dedicated branch circuit and
2a continuous raceway from the panel to the future electric
3vehicle parking space.
4    "Electric vehicle station" means a station that is
5designed in compliance with the relevant building code and
6delivers electricity from a source outside an electric vehicle
7into one or more electric vehicles.
8    "Electric vehicle system" includes several charging points
9simultaneously connecting several electric vehicles to the
10electric vehicle charging station and any related equipment
11needed to facilitate charging an electric vehicle. "Electric
12vehicle 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.

 

 

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1    "Electric vehicle supply equipment" means a conductor,
2including an ungrounded, grounded, and equipment grounding
3conductor, and electric vehicle connectors, attachment plugs,
4and all other fittings, devices, power outlets, and
5apparatuses installed specifically for the purpose of
6transferring energy between the premises wirings and the
7electric vehicle.
8    "Electric vehicle ready" means a parking space that is
9designed and constructed to include a fully-wired circuit with
10a 208-volt to 250-volt, rated no more than 50-ampere electric
11vehicle charging receptacle outlet or termination point,
12including the conduit, wiring, and electrical service capacity
13necessary to serve that receptacle, to allow for future
14electric vehicle supply equipment.
15    "Level 1" means a charging system that provides charging
16through a 120-volt AC plug with a cord connector that meets the
17SAE International J2954 standard or successor standard.
18    "Level 2" means a charging system that provides charging
19through a 208-volt to 240-volt AC plug with a cord connector
20that meets the SAE International J2954 standard or a successor
21standard.
22    "New" means any newly constructed building and associated
23newly constructed parking facility.
24    "Reasonable restriction" means a restriction that does not
25significantly increase the cost of the electric vehicle
26charging station or electric vehicle charging system or

 

 

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1significantly decrease its efficiency or specified
2performance.
3    "Renovated" means altered or added where electrical
4service capacity is increased.
 
5    Section 45-20. Residential requirements. A new or
6renovated 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
22parking space shall be marked and signed for common use by
23residents. A resident shall use an electric vehicle parking
24space only when he or she is charging his or her electric
25vehicle.
 

 

 

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1    Section 45-25. Nonresidential requirements. A new or
2renovated nonresidential building shall have 20% of its total
3parking spaces electric vehicle ready.
 
4    Section 45-30. Electric vehicle charging station policy
5for unit owners.
6    (a) Any covenant, restriction, or condition contained in
7any deed, contract, security interest, or other instrument
8affecting the transfer or sale of any interest in a
9condominium or common interest community, and any provision of
10a governing document that effectively prohibits or
11unreasonably restricts the installation or use of an electric
12vehicle charging station within a unit owner's unit or a
13designated parking space, including, but not limited to, a
14deeded parking space, a parking space in a unit owner's
15exclusive use common area, or a parking space that is
16specifically designated for use by a particular unit owner, or
17is in conflict with this Section, is void and unenforceable.
18    (b) This Section does not apply to provisions that impose
19a reasonable restriction on an electric vehicle charging
20station. However, it is the policy of this State to promote,
21encourage, and remove obstacles to the use of an electric
22vehicle charging station.
23    (c) An electric vehicle charging station shall meet
24applicable health and safety standards and requirements

 

 

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1imposed by State and local authorities, and all other
2applicable zoning, land use, or other ordinances or land use
3permits.
4    (d) If approval is required for the installation or use of
5an electric vehicle charging station, the association shall
6process and approve the application in the same manner as an
7application for approval of an architectural modification to
8the property, and the association shall not willfully avoid or
9delay the adjudication of the application. The approval or
10denial of an application shall be in writing. If an
11application is not denied in writing within 60 days from the
12date of the receipt of the application, the application shall
13be deemed approved unless the delay is the result of a
14reasonable request for additional information.
15    (e) If the electric vehicle charging station is to be
16placed in a common area or exclusive use common area, as
17designated by the condominium or common interest community
18association, 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

 

 

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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

 

 

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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
26of an electric vehicle charging station for the exclusive use

 

 

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1of a unit owner in a common area that is not an exclusive use
2common area shall be authorized by the association only if
3installation in the unit owner's designated parking space is
4impossible or unreasonably expensive. In such an event, the
5association shall enter into a license agreement with the unit
6owner for the use of the space in a common area, and the unit
7owner shall comply with all of the requirements in subsection
8(e).
9    (g) An association may install an electric vehicle
10charging station in the common area for the use of all unit
11owners and members of the association. The association shall
12develop appropriate terms of use for the electric vehicle
13charging station.
14    (h) An association may create a new parking space where
15one did not previously exist to facilitate the installation of
16an electric vehicle charging station.
17    (i) An association that willfully violates this Section
18shall be liable to the unit owner for actual damages and shall
19pay 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
21electric vehicle charging station installed and seeking to
22enforce compliance with this Section, the court shall award
23reasonable attorney's fees to a prevailing plaintiff.
 
24    Section 45-35. Electric vehicle charging system policy for
25renters.

 

 

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1    (a) Notwithstanding any provision in the lease to the
2contrary, 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

 

 

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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
20in 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

 

 

HB0804 Engrossed- 222 -LRB102 10881 SPS 16211 b

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
22an electric vehicle charging system on property accessible to
23other tenants, including a parking space, carport, or garage
24stall, then, unless otherwise specified in a written agreement
25with the landlord:
26        (1) The tenant, and each successive tenant with

 

 

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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

 

 

HB0804 Engrossed- 224 -LRB102 10881 SPS 16211 b

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
11tenant's cost is the property of the tenant. Upon termination
12of the lease, if the electric vehicle charging system is
13removable, the tenant may either remove it or sell it to the
14landlord or another tenant for an agreed price. Nothing in
15this subsection requires the landlord or another tenant to
16purchase the electric vehicle charging system.
17    (f) A landlord that willfully violates this Section shall
18be liable to the tenant for actual damages, and shall pay a
19civil penalty to the tenant in an amount not to exceed $1,000.
20    (g) In any action by a tenant requesting to have an
21electric vehicle charging system installed and seeking to
22enforce compliance with this Section, the court shall award
23reasonable attorney's fees to a prevailing plaintiff.
 
24
Article 90. Amendatory Provisions

 

 

 

HB0804 Engrossed- 225 -LRB102 10881 SPS 16211 b

1    Section 90-5. The Illinois Administrative Procedure Act is
2amended by adding Sections 5-45.8, 5-45.9, and 5-49.10 as
3follows:
 
4    (5 ILCS 100/5-45.8 new)
5    Sec. 5-45.8. Emergency rulemaking; Energy Community
6Reinvestment Act. To provide for the expeditious and timely
7implementation of the Energy Community Reinvestment Act,
8emergency rules may be adopted in accordance with Section 5-45
9by the Department of Commerce and Economic Opportunity to
10implement Section 20-15 of the Energy Community Reinvestment
11Act with respect to applications for designation as Clean
12Energy Empowerment Zones. The adoption of emergency rules
13authorized by Section 5-45 and this Section is deemed to be
14necessary 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.
17To provide for the expeditious and timely implementation of
18this amendatory Act of the 102nd General Assembly, emergency
19rules may be adopted in accordance with Section 5-45 by the
20Illinois Commerce Commission to implement the changes made by
21this amendatory Act of the 102nd General Assembly to the
22Public Utilities Act. The adoption of emergency rules
23authorized by Section 5-45 and this Section is deemed to be
24necessary for the public interest, safety, and welfare.
 

 

 

HB0804 Engrossed- 226 -LRB102 10881 SPS 16211 b

1    (5 ILCS 100/5-49.10 new)
2    Sec. 5-49.10. Emergency rulemaking; Public Utilities
3Intervenor Compensation Act. To provide for the expeditious
4and timely implementation of the Public Utilities Intervenor
5Compensation Act, emergency rules may be adopted in accordance
6with Section 5-45 by the Illinois Commerce Commission to
7implement the Public Utilities Intervenor Compensation Act.
8The adoption of emergency rules authorized by Section 5-45 and
9this Section is deemed to be necessary for the public
10interest, safety, and welfare.
11    This Section is repealed on January 1, 2026.
 
12    Section 90-10. The Electric Vehicle Act is amended by
13adding 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
17necessary to provide access to electric vehicles to residents
18in communities for individuals whom car ownership is not an
19option, affordable, or a preference, particularly for
20environmental justice communities and low-income communities.
21    (b) Definitions. As used in this Section:
22    "Department" means the Department of Commerce and Economic
23Opportunity.

 

 

HB0804 Engrossed- 227 -LRB102 10881 SPS 16211 b

1    "Environmental justice communities" means the definition
2of that term based on existing methodologies and findings,
3used and as may be updated by the Illinois Power Agency and its
4program administrator in the Illinois Solar for All Program.
5    "Low-income" means persons and families whose income does
6not exceed 80% of area median income, adjusted for family size
7and revised every 2 years.
8    (c) Within 120 days after the effective date of this
9amendatory Act of the 102nd General Assembly, and for a period
10of not less than 36 months thereafter, the Department of
11Commerce and Economic Opportunity shall establish and
12implement an Electric Vehicle Access for All Program designed
13to maximize opportunities for carbon-free transportation
14across the State, particularly targeting environmental justice
15and low-income communities, which shall include the following
16initiatives:
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

 

 

HB0804 Engrossed- 228 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 229 -LRB102 10881 SPS 16211 b

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
10initiatives shall be designed to maximize opportunities for
11carbon-free transportation across the State, particularly
12targeting environmental justice and low-income communities,
13and to provide grants to pilot programs with the purpose of
14bridging public transportation gaps between residences and
15employment locations. Eligible programs may include electric
16shuttles, electric and nonelectric bicycle and scooter
17sharing, electric vehicle sharing, and other carbon-free
18alternatives. The Department of Commerce and Economic
19Opportunity shall hire or select, through a competitive
20bidding program, a program administrator to oversee and
21administer the Program.
22    (d) In conducting the Program, the Department of Commerce
23and Economic Opportunity shall partner with appropriate
24transit agencies, employers, community organizations, local
25governments, and other transportation services to increase the
26number of employment, healthcare, civic, education, or

 

 

HB0804 Engrossed- 230 -LRB102 10881 SPS 16211 b

1recreation locations reachable, in coordination with public
2transit, with the addition of Electric Vehicle Access for All
3Program initiatives and investments. The Department of
4Commerce and Economic Opportunity shall additionally partner
5with local governments engaging in Community Energy, Climate,
6and Job Planning, as described in the Community Energy,
7Climate, and Jobs Planning Act, to implement programs
8efficiently with needs identified in Community Energy,
9Climate, and Jobs Plans.
10    (e) Projects, programs, or other initiatives funded
11through this Program must participate in time-of-use rates,
12hourly pricing electric rates, charging plans or rates that
13encourage off-peak charging, optimized charging programs,
14demand response, or similar programs as part of a beneficial
15electrification program, as provided under Section 16-107.8 of
16the Public Utilities Act, to the extent practicable, to
17minimize the impact to the electric grid of new electric
18vehicle charging infrastructure and to use electricity at
19times when renewable energy generation is highest.
20    (f) The Department of Commerce and Economic Opportunity
21shall design the Program within the budget described under
22Section 16-107.8 of the Public Utilities Act and invoice the
23electric utilities specified in Section 16-107.8 of the Public
24Utilities Act for the costs incurred in the execution of the
25Program.
26    (g) The Department of Commerce and Economic Opportunity

 

 

HB0804 Engrossed- 231 -LRB102 10881 SPS 16211 b

1shall report to the Governor and the General Assembly
2regarding the effectiveness of the Program no later than
3October 1, 2023.
 
4    (20 ILCS 627/35 new)
5    Sec. 35. Administrative review. All final administrative
6decisions, including, but not limited to, funding allocation
7and rules issued by the Department under this Act are subject
8to judicial review under the Administrative Review Law. No
9action may be commenced under this Section prior to 60 days
10after the complainant has given notice in writing of the
11action to the Department.
 
12    (20 ILCS 627/40 new)
13    Sec. 40. Authorized expenditure of State-controlled funds
14to accelerate electric vehicle adoption.
15    (a) Within 120 days after the effective date of this
16amendatory Act of the 102nd General Assembly, the
17Environmental Protection Agency must initiate a comprehensive
18stakeholder process to solicit input on the development of an
19updated plan for expenditure of the remaining Volkswagen
20Settlement Environment Mitigation Fund and for the use of the
21$70,000,000 funds from Article 8, Section 25 of Public Act
22101-29. At a minimum, the stakeholder process shall include
23representatives from community-based organizations in
24environmental justice communities, community-based

 

 

HB0804 Engrossed- 232 -LRB102 10881 SPS 16211 b

1organizations serving economically disadvantaged persons and
2families, and community-based organizations focused on
3transportation equality and access. These stakeholders shall
4be representative of the entire State and located throughout
5the State. The Environmental Protection Agency shall provide
6administrative support for the stakeholder process and all
7meetings shall be accessible with rotating locations, call-in
8options, and materials and agendas circulated well in advance,
9and there shall be opportunities for input outside of meetings
10from those with limited capacity and ability to attend via
11one-on-one meetings, surveys, and calls subject to compliance
12with the Open Meetings Act. The plan should prioritize the
13purchase of electric vehicles and equipment, including public
14transit, school buses, and other public fleet vehicles and
15spending should be prioritized toward economically
16disadvantaged communities and environmental justice
17communities.
18    (b) Within 9 months after the effective date of this
19amendatory Act of the 102nd General Assembly, the
20Environmental Protection Agency must publish a comprehensive
21plan for both the use of the Volkswagen Settlement Environment
22Mitigation Fund and for the $70,000,000 funds from Article 8,
23Section 25 of Public Act 101-29, as amended, reappropriated
24from the Build Illinois Bond Fund to the Environmental
25Protection Agency for grants for transportation
26electrification infrastructure projects; including, but not

 

 

HB0804 Engrossed- 233 -LRB102 10881 SPS 16211 b

1limited to grants for the purpose of encouraging electric
2vehicle charging infrastructure, prioritizing investments in
3medium and heavy-duty charging, and electrifying public
4transit, school bus transit, and vehicles operated by or on
5behalf of public agencies. Those Volkswagen and capital funds
6which are allocated to charging infrastructure must be spent
7within 3 years of passage and at least 25% of those funds must
8be spent per year until the funds are depleted.
9    (c) The Environmental Protection Agency shall issue
10reports, to be posted on its public website and sent to the
11Illinois Commerce Commission, summarizing all funds granted
12and investments made using funds from the Volkswagen
13Settlement Environmental Mitigation Fund, and all grants or
14investments currently planned to be made from said fund but
15not 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

 

 

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1amended by changing Sections 10, 15, 20, 30, and 45 and by
2adding 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
7commercial buildings.
8    "Code" means the latest published edition of the
9International Code Council's International Energy Conservation
10Code as adopted by the Board, including any published
11supplements adopted by the Board and any amendments and
12adaptations to the Code that are made by the Board.
13    "Commercial building" means any building except a building
14that is a residential building, as defined in this Section.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Municipality" means any city, village, or incorporated
18town.
19    "Residential building" means (i) a detached one-family or
202-family dwelling or (ii) any building that is 3 stories or
21less in height above grade that contains multiple dwelling
22units, in which the occupants reside on a primarily permanent
23basis, such as a townhouse, a row house, an apartment house, a
24convent, a monastery, a rectory, a fraternity or sorority
25house, a dormitory, and a rooming house; provided, however,

 

 

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1that when applied to a building located within the boundaries
2of a municipality having a population of 1,000,000 or more,
3the term "residential building" means a building containing
4one or more dwelling units, not exceeding 4 stories above
5grade, where occupants are primarily permanent.
6    "Site energy index" means a scalar published by the
7Pacific Northwest National Laboratories representing the ratio
8of the site energy performance of an evaluated code compared
9to the site energy performance of the 2006 International
10Energy Conservation Code. A site energy index includes only
11conservation measures and excludes net energy credit for any
12on-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
16consultation with the Department, shall adopt the Code as
17minimum requirements for commercial buildings, applying to the
18construction of, renovations to, and additions to all
19commercial buildings in the State. The Board, in consultation
20with the Department, shall also adopt the Code as the minimum
21and maximum requirements for residential buildings, applying
22to the construction of, renovations to, and additions to all
23residential buildings in the State, except as provided for in
24Section 45 of this Act. The Board may appropriately adapt the
25International Energy Conservation Code to apply to the

 

 

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1particular economy, population distribution, geography, and
2climate of the State and construction therein, consistent with
3the 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
8year after its publication. The Code shall take effect within
96 months after it is adopted by the Board, except that,
10beginning January 1, 2012, the Code adopted in 2012 shall take
11effect on January 1, 2013. Except as otherwise provided in
12this Act, the Code shall apply to (i) any new building or
13structure in this State for which a building permit
14application is received by a municipality or county and (ii)
15beginning on the effective date of this amendatory Act of the
16100th General Assembly, each State facility specified in
17Section 4.01 of the Capital Development Board Act. In the case
18of any addition, alteration, renovation, or repair to an
19existing residential or commercial structure, the Code adopted
20under this Act applies only to the portions of that structure
21that are being added, altered, renovated, or repaired. The
22changes made to this Section by this amendatory Act of the 97th
23General Assembly shall in no way invalidate or otherwise
24affect contracts entered into on or before the effective date
25of this amendatory Act of the 97th General Assembly.

 

 

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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
25existing building, building system, or portion thereof shall
26conform to the provisions of the Code as they relate to new

 

 

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1construction without requiring the unaltered portion of the
2existing building or building system to comply with the Code.
3The following need not comply with the Code, provided that the
4energy use of the building is not increased: (i) storm windows
5installed over existing fenestration, (ii) glass-only
6replacements in an existing sash and frame, (iii) existing
7ceiling, wall, or floor cavities exposed during construction,
8provided that these cavities are filled with insulation, and
9(iv) construction where the existing roof, wall, or floor is
10not exposed.
11    (d) A unit of local government that does not regulate
12energy efficient building standards is not required to adopt,
13enforce, or administer the Code; however, any energy efficient
14building standards adopted by a unit of local government must
15comply with this Act. If a unit of local government does not
16regulate energy efficient building standards, any
17construction, renovation, or addition to buildings or
18structures 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
22Department, shall determine procedures for compliance with the
23Code. These procedures may include but need not be limited to
24certification by a national, State, or local accredited energy
25conservation program or inspections from private

 

 

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1Code-certified inspectors using the Code. For purposes of the
2Illinois Stretch Energy Code under Section 55 of this Act, the
3Board shall allow and encourage, as an alternative compliance
4mechanism, project certification by a nationally recognized
5nonprofit certification organization specializing in
6high-performance passive buildings and offering
7climate-specific building energy standards that require equal
8or better energy performance than the Illinois Stretch Energy
9Code.
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
14home rule unit, may regulate energy efficient building
15standards for commercial buildings in a manner that is less
16stringent than the provisions contained in this Act.
17    (b) No unit of local government, including any home rule
18unit, may regulate energy efficient building standards for
19residential or commercial buildings in a manner that is either
20less or more stringent than the standards established pursuant
21to this Act; provided, however, that the following entities
22may regulate energy efficient building standards for
23residential or commercial buildings in a manner that is more
24stringent than the provisions contained in this Act: (i) a
25unit of local government, including a home rule unit, that

 

 

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1has, on or before May 15, 2009, adopted or incorporated by
2reference energy efficient building standards for residential
3buildings that are equivalent to or more stringent than the
42006 International Energy Conservation Code, (ii) a unit of
5local government, including a home rule unit, that has, on or
6before May 15, 2009, provided to the Capital Development
7Board, as required by Section 10.18 of the Capital Development
8Board Act, an identification of an energy efficient building
9code or amendment that is equivalent to or more stringent than
10the 2006 International Energy Conservation Code, (iii) a
11municipality that has adopted the Illinois Stretch Energy
12Code, and (iv) (iii) a municipality with a population of
131,000,000 or more.
14    (c) No unit of local government, including any home rule
15unit or unit of local government that is subject to State
16regulation under the Code as provided in Section 15 of this
17Act, may hereafter enact any annexation ordinance or
18resolution, or require or enter into any annexation agreement,
19that imposes energy efficient building standards for
20residential or commercial buildings that are either less or
21more stringent than the energy efficiency standards in effect,
22at the time of construction, throughout the unit of local
23government, except for the Illinois Stretch Energy Code.
24    (d) This Section is a denial and limitation of home rule
25powers and functions under subsection (i) of Section 6 of
26Article VII of the Illinois Constitution on the concurrent

 

 

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1exercise by home rule units of powers and functions exercised
2by the State. Nothing in this Section, however, prevents a
3unit of local government from adopting an energy efficiency
4code or standards for commercial buildings that are more
5stringent 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
10create and adopt the Illinois Stretch Energy Code, to allow
11municipalities and projects authorized or funded by the Board
12to achieve more energy efficiency in buildings than the
13Illinois Energy Conservation Code through a consistent pathway
14across the State. The Illinois Stretch Energy Code shall be
15available for adoption by any municipality and shall set
16minimum energy efficiency requirements, taking the place of
17the Illinois Energy Conservation Code within any municipality
18that adopts the Illinois Stretch Energy Code.
19    (b) The Illinois Stretch Energy Code shall have separate
20components for commercial and residential buildings, which may
21be adopted by the municipality jointly or separately.
22    (c) The Illinois Stretch Energy Code shall apply to all
23projects to which an energy conservation code is applicable
24that are authorized or funded in any part by the Board after
25January 1, 2023.

 

 

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1    (d) Development of the Illinois Stretch Energy Code shall
2be completed and available for adoption by municipalities by
3December 31, 2022.
4    (e) Consistent with the requirements under paragraph (2.5)
5of subsection (g) of Section 8-103B of the Public Utilities
6Act and under paragraph (2) of subsection (j) of Section
78-104.1 of the Public Utilities Act, municipalities that adopt
8the Illinois Stretch Energy Code may use utility programs to
9support compliance with the Illinois Stretch Energy Code. The
10amount of savings from such utility efforts that may be
11counted toward achievement of their cumulative persisting
12annual savings goals shall be based on reasonable estimates of
13the increase in savings resulting from the utility efforts,
14relative to reasonable approximations of what would have
15occurred absent the utility involvement.
16    (f) The Illinois Stretch Energy Code's residential
17components 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

 

 

HB0804 Engrossed- 243 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 244 -LRB102 10881 SPS 16211 b

1    Conservation Code.
2    (g) The Illinois Stretch Energy Code's commercial
3components 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
26Energy Code includes:

 

 

HB0804 Engrossed- 245 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 246 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 247 -LRB102 10881 SPS 16211 b

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
11changing 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
14General 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.

 

 

HB0804 Engrossed- 248 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 249 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 250 -LRB102 10881 SPS 16211 b

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
17to create the Illinois Power Agency and that the goals and
18objectives of that Agency are to accomplish each of the
19following:
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

 

 

HB0804 Engrossed- 251 -LRB102 10881 SPS 16211 b

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,

 

 

HB0804 Engrossed- 252 -LRB102 10881 SPS 16211 b

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
16which the Illinois Finance Authority agrees to loan the
17proceeds of revenue bonds issued with respect to a project to
18the Agency upon terms providing for loan repayment
19installments at least sufficient to pay when due all principal
20of, interest and premium, if any, on those revenue bonds, and
21providing for maintenance, insurance, and other matters in
22respect of the project.
23    "Authority" means the Illinois Finance Authority.
24    "Brownfield site photovoltaic project" means photovoltaics
25that are:

 

 

HB0804 Engrossed- 253 -LRB102 10881 SPS 16211 b

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
21facility that uses primarily coal as a feedstock and that
22captures and sequesters carbon dioxide emissions at the
23following levels: at least 50% of the total carbon dioxide
24emissions that the facility would otherwise emit if, at the
25time construction commences, the facility is scheduled to
26commence operation before 2016, at least 70% of the total

 

 

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1carbon dioxide emissions that the facility would otherwise
2emit if, at the time construction commences, the facility is
3scheduled to commence operation during 2016 or 2017, and at
4least 90% of the total carbon dioxide emissions that the
5facility would otherwise emit if, at the time construction
6commences, the facility is scheduled to commence operation
7after 2017. The power block of the clean coal facility shall
8not exceed allowable emission rates for sulfur dioxide,
9nitrogen oxides, carbon monoxide, particulates and mercury for
10a natural gas-fired combined-cycle facility the same size as
11and in the same location as the clean coal facility at the time
12the clean coal facility obtains an approved air permit. All
13coal used by a clean coal facility shall have high volatile
14bituminous rank and greater than 1.7 pounds of sulfur per
15million btu content, unless the clean coal facility does not
16use gasification technology and was operating as a
17conventional coal-fired electric generating facility on June
181, 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
21brownfield site in a municipality with at least 1,000,000
22residents; (2) uses a gasification process to produce
23substitute natural gas; (3) uses coal as at least 50% of the
24total feedstock over the term of any sourcing agreement with a
25utility and the remainder of the feedstock may be either
26petroleum coke or coal, with all such coal having a high

 

 

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1bituminous rank and greater than 1.7 pounds of sulfur per
2million Btu content unless the facility reasonably determines
3that it is necessary to use additional petroleum coke to
4deliver additional consumer savings, in which case the
5facility shall use coal for at least 35% of the total feedstock
6over the term of any sourcing agreement; and (4) captures and
7sequesters at least 85% of the total carbon dioxide emissions
8that the facility would otherwise emit.
9    "Clean coal SNG facility" means a facility that uses a
10gasification process to produce substitute natural gas, that
11sequesters at least 90% of the total carbon dioxide emissions
12that the facility would otherwise emit, that uses at least 90%
13coal as a feedstock, with all such coal having a high
14bituminous rank and greater than 1.7 pounds of sulfur per
15million btu content, and that has a valid and effective permit
16to construct emission sources and air pollution control
17equipment and approval with respect to the federal regulations
18for Prevention of Significant Deterioration of Air Quality
19(PSD) for the plant pursuant to the federal Clean Air Act;
20provided, however, a clean coal SNG brownfield facility shall
21not be a clean coal SNG facility.
22    "Commission" means the Illinois Commerce Commission.
23    "Community renewable generation project" means an electric
24generating facility that:
25        (1) is powered by wind, solar thermal energy,
26    photovoltaic cells or panels, biodiesel, crops and

 

 

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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
16construction 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;

 

 

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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
16Section 16-102 of the Public Utilities Act.
17    "Delivery year" means the consecutive 12-month period
18beginning June 1 of a given year and ending May 31 of the
19following year.
20    "Department" means the Department of Commerce and Economic
21Opportunity.
22    "Director" means the Director of the Illinois Power
23Agency.
24    "Demand-response" means measures that decrease peak
25electricity demand or shift demand from peak to off-peak
26periods.

 

 

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1    "Distributed renewable energy generation device" means a
2device 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
20of electricity or natural gas consumed in order to achieve a
21given end use. "Energy efficiency" includes voltage
22optimization measures that optimize the voltage at points on
23the electric distribution voltage system and thereby reduce
24electricity consumption by electric customers' end use
25devices. "Energy efficiency" also includes measures that
26reduce the total Btus of electricity, natural gas, and other

 

 

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1fuels needed to meet the end use or uses.
2    "Electric utility" has the same definition as found in
3Section 16-102 of the Public Utilities Act.
4    "Facility" means an electric generating unit or a
5co-generating unit that produces electricity along with
6related equipment necessary to connect the facility to an
7electric transmission or distribution system.
8    "Governmental aggregator" means one or more units of local
9government that individually or collectively procure
10electricity to serve residential retail electrical loads
11located within its or their jurisdiction.
12    "Local government" means a unit of local government as
13defined in Section 1 of Article VII of the Illinois
14Constitution.
15    "Municipality" means a city, village, or incorporated
16town.
17    "Municipal utility" means a public utility owned and
18operated by any subdivision or municipal corporation of this
19State.
20    "Nameplate capacity" means the aggregate inverter
21nameplate capacity in kilowatts AC.
22    "Person" means any natural person, firm, partnership,
23corporation, either domestic or foreign, company, association,
24limited liability company, joint stock company, or association
25and includes any trustee, receiver, assignee, or personal
26representative thereof.

 

 

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1    "Project" means the planning, bidding, and construction of
2a facility.
3    "Public utility" has the same definition as found in
4Section 3-105 of the Public Utilities Act.
5    "Real property" means any interest in land together with
6all structures, fixtures, and improvements thereon, including
7lands under water and riparian rights, any easements,
8covenants, licenses, leases, rights-of-way, uses, and other
9interests, together with any liens, judgments, mortgages, or
10other claims or security interests related to real property.
11    "Renewable energy credit" means a tradable credit that
12represents the environmental attributes of one megawatt hour
13of energy produced from a renewable energy resource.
14    "Renewable energy resources" includes energy and its
15associated renewable energy credit or renewable energy credits
16from wind, solar thermal energy, photovoltaic cells and
17panels, biodiesel, anaerobic digestion, crops and untreated
18and unadulterated organic waste biomass, tree waste, and
19hydropower that does not involve new construction or
20significant expansion of hydropower dams. For purposes of this
21Act, landfill gas produced in the State is considered a
22renewable energy resource. "Renewable energy resources" does
23not include the incineration or burning of tires, garbage,
24general household, institutional, and commercial waste,
25industrial lunchroom or office waste, landscape waste other
26than tree waste, railroad crossties, utility poles, or

 

 

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1construction or demolition debris, other than untreated and
2unadulterated waste wood.
3    "Retail customer" has the same definition as found in
4Section 16-102 of the Public Utilities Act.
5    "Revenue bond" means any bond, note, or other evidence of
6indebtedness issued by the Authority, the principal and
7interest of which is payable solely from revenues or income
8derived from any project or activity of the Agency.
9    "Sequester" means permanent storage of carbon dioxide by
10injecting it into a saline aquifer, a depleted gas reservoir,
11or an oil reservoir, directly or through an enhanced oil
12recovery process that may involve intermediate storage,
13regardless of whether these activities are conducted by a
14clean coal facility, a clean coal SNG facility, a clean coal
15SNG brownfield facility, or a party with which a clean coal
16facility, clean coal SNG facility, or clean coal SNG
17brownfield facility has contracted for such purposes.
18    "Service area" has the same definition as found in Section
1916-102 of the Public Utilities Act.
20    "Sourcing agreement" means (i) in the case of an electric
21utility, an agreement between the owner of a clean coal
22facility and such electric utility, which agreement shall have
23terms and conditions meeting the requirements of paragraph (3)
24of subsection (d) of Section 1-75, (ii) in the case of an
25alternative retail electric supplier, an agreement between the
26owner of a clean coal facility and such alternative retail

 

 

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1electric supplier, which agreement shall have terms and
2conditions meeting the requirements of Section 16-115(d)(5) of
3the Public Utilities Act, and (iii) in case of a gas utility,
4an agreement between the owner of a clean coal SNG brownfield
5facility and the gas utility, which agreement shall have the
6terms 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
9from an electric utility, and (ii) has a subscription of no
10less than 200 watts to a community renewable generation
11project that is located in the electric utility's service
12area. No subscriber's subscriptions may total more than 40% of
13the nameplate capacity of an individual community renewable
14generation project. Entities that are affiliated by virtue of
15a common parent shall not represent multiple subscriptions
16that total more than 40% of the nameplate capacity of an
17individual community renewable generation project.
18    "Subscription" means an interest in a community renewable
19generation project expressed in kilowatts, which is sized
20primarily to offset part or all of the subscriber's
21electricity usage.
22    "Substitute natural gas" or "SNG" means a gas manufactured
23by gasification of hydrocarbon feedstock, which is
24substantially interchangeable in use and distribution with
25conventional natural gas.
26    "Total resource cost test" or "TRC test" means a standard

 

 

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1that is met if, for an investment in energy efficiency or
2demand-response measures, the benefit-cost ratio is greater
3than one. The benefit-cost ratio is the ratio of the net
4present value of the total benefits of the program to the net
5present value of the total costs as calculated over the
6lifetime of the measures. A total resource cost test compares
7the sum of avoided electric utility costs, representing the
8benefits that accrue to the system and the participant in the
9delivery of those efficiency measures and including avoided
10costs associated with reduced use of natural gas or other
11fuels, avoided costs associated with reduced water
12consumption, and avoided costs associated with reduced
13operation and maintenance costs, as well as other quantifiable
14societal benefits, to the sum of all incremental costs of
15end-use measures that are implemented due to the program
16(including both utility and participant contributions), plus
17costs to administer, deliver, and evaluate each demand-side
18program, to quantify the net savings obtained by substituting
19the demand-side program for supply resources. In calculating
20avoided costs of power and energy that an electric utility
21would otherwise have had to acquire, reasonable estimates
22shall be included of financial costs likely to be imposed by
23future regulations and legislation on emissions of greenhouse
24gases. In discounting future societal costs and benefits for
25the purpose of calculating net present values, a societal
26discount rate based on actual, long-term Treasury bond yields

 

 

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1should be used. Notwithstanding anything to the contrary, the
2TRC test shall not include or take into account a calculation
3of market price suppression effects or demand reduction
4induced price effects.
5    "Utility-scale solar project" means an electric generating
6facility 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
12facility 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
17represents the environmental attributes of one megawatt hour
18of energy produced from a zero emission facility.
19    "Zero emission facility" means a facility that: (1) is
20fueled by nuclear power; and (2) is interconnected with PJM
21Interconnection, LLC or the Midcontinent Independent System
22Operator, 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.

 

 

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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

 

 

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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

 

 

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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
15has all of the powers necessary or convenient to carry out the
16purposes and provisions of this Act, including without
17limitation, 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

 

 

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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

 

 

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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.

 

 

HB0804 Engrossed- 270 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 271 -LRB102 10881 SPS 16211 b

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

 

 

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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,
14capacity, or other products, the Agency shall not procure any
15products or services from persons or organizations that are in
16violation of the Displaced Energy Workers Bill of Rights, as
17provided under the Energy Community Reinvestment Act, at the
18time 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
22Resources Fund; Illinois Solar for All Program.
23    (a) The Illinois Power Agency Renewable Energy Resources
24Fund is created as a special fund in the State treasury.
25    (b) The Illinois Power Agency Renewable Energy Resources

 

 

HB0804 Engrossed- 273 -LRB102 10881 SPS 16211 b

1Fund shall be administered by the Agency as described in this
2subsection (b), provided that the changes to this subsection
3(b) made by this amendatory Act of the 99th General Assembly
4shall not interfere with existing contracts under this
5Section.
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

 

 

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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

 

 

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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

 

 

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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

 

 

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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.

 

 

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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

 

 

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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

 

 

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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

 

 

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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.

 

 

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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.

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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"
13means persons and families whose income does not exceed 80% of
14area median income, adjusted for family size and revised every
155 years.
16    For the purposes of this subsection (b), the Agency shall
17define "environmental justice community" based on
18methodologies and findings established by the Illinois Power
19Agency and its Administrator for the Illinois Solar for All
20Program in its initial long-term renewable resources
21procurement plan and updated by the Illinois Power Agency and
22its Administrator for the Illinois Solar for All Program as
23part of the long-term renewable resources procurement plan
24update as part of long-term renewable resources procurement
25plan development, to ensure, to the extent practicable,
26compatibility with other agencies' definitions and may, for

 

 

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1guidance, look to the definitions used by federal, state, or
2local governments.
3    (b-5) After the receipt of all payments required by
4Section 16-115D of the Public Utilities Act, no additional
5funds shall be deposited into the Illinois Power Agency
6Renewable Energy Resources Fund unless directed by order of
7the Commission.
8    (b-10) After the receipt of all payments required by
9Section 16-115D of the Public Utilities Act and payment in
10full of all contracts executed by the Agency under subsections
11(b) and (i) of this Section, if the balance of the Illinois
12Power Agency Renewable Energy Resources Fund is under $5,000,
13then the Fund shall be inoperative and any remaining funds and
14any funds submitted to the Fund after that date, shall be
15transferred to the Supplemental Low-Income Energy Assistance
16Fund for use in the Low-Income Home Energy Assistance Program,
17as authorized by the Energy Assistance Act.
18    (c) (Blank).
19    (d) (Blank).
20    (e) All renewable energy credits procured using monies
21from the Illinois Power Agency Renewable Energy Resources Fund
22shall be permanently retired.
23    (f) The selection of one or more third-party program
24managers or administrators, the selection of the independent
25evaluator, and the procurement processes described in this
26Section are exempt from the requirements of the Illinois

 

 

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1Procurement Code, under Section 20-10 of that Code.
2    (g) All disbursements from the Illinois Power Agency
3Renewable Energy Resources Fund shall be made only upon
4warrants of the Comptroller drawn upon the Treasurer as
5custodian of the Fund upon vouchers signed by the Director or
6by the person or persons designated by the Director for that
7purpose. The Comptroller is authorized to draw the warrant
8upon vouchers so signed. The Treasurer shall accept all
9warrants so signed and shall be released from liability for
10all payments made on those warrants.
11    (h) The Illinois Power Agency Renewable Energy Resources
12Fund shall not be subject to sweeps, administrative charges,
13or chargebacks, including, but not limited to, those
14authorized under Section 8h of the State Finance Act, that
15would in any way result in the transfer of any funds from this
16Fund to any other fund of this State or in having any such
17funds utilized for any purpose other than the express purposes
18set forth in this Section.
19    (h-5) The Agency may assess fees to each bidder to recover
20the costs incurred in connection with a procurement process
21held under this Section. Fees collected from bidders shall be
22deposited 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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,

 

 

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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,

 

 

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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

 

 

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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

 

 

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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

 

 

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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
10and Procurement Bureau has the following duties and
11responsibilities:
12    (a) The Planning and Procurement Bureau shall each year,
13beginning in 2008, develop procurement plans and conduct
14competitive procurement processes in accordance with the
15requirements of Section 16-111.5 of the Public Utilities Act
16for the eligible retail customers of electric utilities that
17on December 31, 2005 provided electric service to at least
18100,000 customers in Illinois. Beginning with the delivery
19year commencing on June 1, 2017, the Planning and Procurement
20Bureau shall develop plans and processes for the procurement
21of zero emission credits from zero emission facilities in
22accordance with the requirements of subsection (d-5) of this
23Section. The Planning and Procurement Bureau shall also
24develop procurement plans and conduct competitive procurement
25processes in accordance with the requirements of Section

 

 

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116-111.5 of the Public Utilities Act for the eligible retail
2customers of small multi-jurisdictional electric utilities
3that (i) on December 31, 2005 served less than 100,000
4customers in Illinois and (ii) request a procurement plan for
5their Illinois jurisdictional load. This Section shall not
6apply to a small multi-jurisdictional utility until such time
7as a small multi-jurisdictional utility requests the Agency to
8prepare a procurement plan for their Illinois jurisdictional
9load. For the purposes of this Section, the term "eligible
10retail customers" has the same definition as found in Section
1116-111.5(a) of the Public Utilities Act.
12    Beginning with the plan or plans to be implemented in the
132017 delivery year, the Agency shall no longer include the
14procurement of renewable energy resources in the annual
15procurement plans required by this subsection (a), except as
16provided in subsection (q) of Section 16-111.5 of the Public
17Utilities Act and subsection (j) of this Section, and shall
18instead develop a long-term renewable resources procurement
19plan in accordance with subsection (c) of this Section and
20Section 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:

 

 

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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

 

 

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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

 

 

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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.

 

 

HB0804 Engrossed- 311 -LRB102 10881 SPS 16211 b

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
11Agency shall, as appropriate, prepare procurement plans, and
12conduct a competitive procurement process as prescribed in
13Section 16-111.5 of the Public Utilities Act, to ensure
14adequate, reliable, affordable, efficient, and environmentally
15sustainable electric service at the lowest total cost over
16time, taking into account any benefits of price stability, for
17eligible retail customers of electric utilities that on
18December 31, 2005 provided electric service to at least
19100,000 customers in the State of Illinois, and for eligible
20Illinois retail customers of small multi-jurisdictional
21electric utilities that (i) on December 31, 2005 served less
22than 100,000 customers in Illinois and (ii) request a
23procurement 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

 

 

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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

 

 

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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

 

 

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

 

 

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1    credits under existing contracts, including renewable
2    energy credits as part of renewable energy resources,
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

 

 

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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;

 

 

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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

 

 

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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

 

 

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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:

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

HB0804 Engrossed- 324 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 325 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 326 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 327 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 328 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 329 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 330 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 331 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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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

 

 

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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,

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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.

 

 

HB0804 Engrossed- 340 -LRB102 10881 SPS 16211 b

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

 

 

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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)

 

 

HB0804 Engrossed- 342 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 344 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 345 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 346 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 347 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 348 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 349 -LRB102 10881 SPS 16211 b

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:

 

 

HB0804 Engrossed- 350 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 351 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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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

 

 

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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

 

 

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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,

 

 

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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

 

 

HB0804 Engrossed- 357 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 359 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 360 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 362 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 363 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 364 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 365 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 366 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 367 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 368 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 369 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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)

 

 

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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.

 

 

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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

 

 

HB0804 Engrossed- 381 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 383 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 384 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 385 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 386 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 387 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 388 -LRB102 10881 SPS 16211 b

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

 

 

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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.

 

 

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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

 

 

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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

 

 

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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

 

 

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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.

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

HB0804 Engrossed- 403 -LRB102 10881 SPS 16211 b

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

 

 

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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
10comment, as required by Section 16-111.5 of the Public
11Utilities Act.
12    (f) The Agency shall submit the final procurement plan to
13the Commission. The Agency shall revise a procurement plan if
14the Commission determines that it does not meet the standards
15set forth in Section 16-111.5 of the Public Utilities Act.
16    (g) The Agency shall assess fees to each affected utility
17to recover the costs incurred in preparation of the annual
18procurement plan for the utility.
19    (h) The Agency shall assess fees to each bidder to recover
20the costs incurred in connection with a competitive
21procurement process.
22    (i) A renewable energy credit, carbon emission credit, or
23zero emission credit can only be used once to comply with a
24single portfolio or other standard as set forth in subsection
25(c), subsection (d), or subsection (d-5) of this Section,
26respectively. A renewable energy credit, carbon emission

 

 

HB0804 Engrossed- 405 -LRB102 10881 SPS 16211 b

1credit, or zero emission credit cannot be used to satisfy the
2requirements of more than one standard. If more than one type
3of credit is issued for the same megawatt hour of energy, only
4one credit can be used to satisfy the requirements of a single
5standard. After such use, the credit must be retired together
6with any other credits issued for the same megawatt hour of
7energy.
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

 

 

HB0804 Engrossed- 406 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 407 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 408 -LRB102 10881 SPS 16211 b

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;
15101-113, eff. 1-1-20.)
 
16    Section 90-20. The State Finance Act is amended by adding
17Sections 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
22Compensation Fund.
 

 

 

HB0804 Engrossed- 409 -LRB102 10881 SPS 16211 b

1    (30 ILCS 105/5.937 new)
2    Sec. 5.937. The Illinois Clean Energy Jobs and Justice
3Fund.
 
4    Section 90-25. The Illinois Income Tax Act is amended by
5changing Section 201 as follows:
 
6    (35 ILCS 5/201)
7    (Text of Section without the changes made by P.A. 101-8,
8which 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
11imposed on every individual, corporation, trust and estate for
12each taxable year ending after July 31, 1969 on the privilege
13of earning or receiving income in or as a resident of this
14State. Such tax shall be in addition to all other occupation or
15privilege taxes imposed by this State or by any municipal
16corporation or political subdivision thereof.
17    (b) Rates. The tax imposed by subsection (a) of this
18Section shall be determined as follows, except as adjusted by
19subsection (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

 

 

HB0804 Engrossed- 410 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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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

 

 

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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
14provisions of Section 201.5.
15    (b-5) Surcharge; sale or exchange of assets, properties,
16and intangibles of organization gaming licensees. For each of
17taxable years 2019 through 2027, a surcharge is imposed on all
18taxpayers on income arising from the sale or exchange of
19capital assets, depreciable business property, real property
20used in the trade or business, and Section 197 intangibles (i)
21of an organization licensee under the Illinois Horse Racing
22Act of 1975 and (ii) of an organization gaming licensee under
23the Illinois Gambling Act. The amount of the surcharge is
24equal to the amount of federal income tax liability for the
25taxable year attributable to those sales and exchanges. The
26surcharge imposed shall not apply if:

 

 

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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

 

 

HB0804 Engrossed- 415 -LRB102 10881 SPS 16211 b

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,
10organization license, or racetrack property by a person other
11than the initial licensee to receive the organization gaming
12license is not subject to a surcharge. The Department shall
13adopt rules necessary to implement and administer this
14subsection.
15    (c) Personal Property Tax Replacement Income Tax.
16Beginning on July 1, 1979 and thereafter, in addition to such
17income tax, there is also hereby imposed the Personal Property
18Tax Replacement Income Tax measured by net income on every
19corporation (including Subchapter S corporations), partnership
20and trust, for each taxable year ending after June 30, 1979.
21Such taxes are imposed on the privilege of earning or
22receiving income in or as a resident of this State. The
23Personal Property Tax Replacement Income Tax shall be in
24addition to the income tax imposed by subsections (a) and (b)
25of this Section and in addition to all other occupation or
26privilege taxes imposed by this State or by any municipal

 

 

HB0804 Engrossed- 416 -LRB102 10881 SPS 16211 b

1corporation or political subdivision thereof.
2    (d) Additional Personal Property Tax Replacement Income
3Tax Rates. The personal property tax replacement income tax
4imposed by this subsection and subsection (c) of this Section
5in the case of a corporation, other than a Subchapter S
6corporation and except as adjusted by subsection (d-1), shall
7be an additional amount equal to 2.85% of such taxpayer's net
8income for the taxable year, except that beginning on January
91, 1981, and thereafter, the rate of 2.85% specified in this
10subsection shall be reduced to 2.5%, and in the case of a
11partnership, trust or a Subchapter S corporation shall be an
12additional amount equal to 1.5% of such taxpayer's net income
13for the taxable year.
14    (d-1) Rate reduction for certain foreign insurers. In the
15case of a foreign insurer, as defined by Section 35A-5 of the
16Illinois Insurance Code, whose state or country of domicile
17imposes on insurers domiciled in Illinois a retaliatory tax
18(excluding any insurer whose premiums from reinsurance assumed
19are 50% or more of its total insurance premiums as determined
20under paragraph (2) of subsection (b) of Section 304, except
21that for purposes of this determination premiums from
22reinsurance do not include premiums from inter-affiliate
23reinsurance arrangements), beginning with taxable years ending
24on or after December 31, 1999, the sum of the rates of tax
25imposed by subsections (b) and (d) shall be reduced (but not
26increased) to the rate at which the total amount of tax imposed

 

 

HB0804 Engrossed- 417 -LRB102 10881 SPS 16211 b

1under this Act, net of all credits allowed under this Act,
2shall equal (i) the total amount of tax that would be imposed
3on the foreign insurer's net income allocable to Illinois for
4the taxable year by such foreign insurer's state or country of
5domicile if that net income were subject to all income taxes
6and taxes measured by net income imposed by such foreign
7insurer's state or country of domicile, net of all credits
8allowed or (ii) a rate of zero if no such tax is imposed on
9such income by the foreign insurer's state of domicile. For
10the purposes of this subsection (d-1), an inter-affiliate
11includes 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

 

 

HB0804 Engrossed- 418 -LRB102 10881 SPS 16211 b

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
13Section 250.
14    (e) Investment credit. A taxpayer shall be allowed a
15credit against the Personal Property Tax Replacement Income
16Tax 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

 

 

HB0804 Engrossed- 419 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 420 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 421 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 422 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 423 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 424 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 425 -LRB102 10881 SPS 16211 b

1Redevelopment 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

 

 

HB0804 Engrossed- 426 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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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

 

 

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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.

 

 

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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

 

 

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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

 

 

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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

 

 

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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
19credit. For taxable years beginning on or after January 1,
202021, there shall also be allowed a High Impact Business
21construction jobs credit against the tax imposed under
22subsections (a) and (b) of this Section as provided in
23subsections (i) and (j) of Section 5.5 of the Illinois
24Enterprise Zone Act.
25    The credit or credits may not reduce the taxpayer's
26liability to less than zero. If the amount of the credit or

 

 

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1credits exceeds the taxpayer's liability, the excess may be
2carried forward and applied against the taxpayer's liability
3in succeeding calendar years in the manner provided under
4paragraph (4) of Section 211 of this Act. The credit or credits
5shall be applied to the earliest year for which there is a tax
6liability. If there are credits from more than one taxable
7year that are available to offset a liability, the earlier
8credit shall be applied first.
9    For partners, shareholders of Subchapter S corporations,
10and owners of limited liability companies, if the liability
11company is treated as a partnership for the purposes of
12federal and State income taxation, there shall be allowed a
13credit under this Section to be determined in accordance with
14the determination of income and distributive share of income
15under Sections 702 and 704 and Subchapter S of the Internal
16Revenue Code.
17    The total aggregate amount of credits awarded under the
18Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
19amendatory 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
22Section 250.
23    (i) Credit for Personal Property Tax Replacement Income
24Tax. For tax years ending prior to December 31, 2003, a credit
25shall be allowed against the tax imposed by subsections (a)
26and (b) of this Section for the tax imposed by subsections (c)

 

 

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1and (d) of this Section. This credit shall be computed by
2multiplying the tax imposed by subsections (c) and (d) of this
3Section by a fraction, the numerator of which is base income
4allocable to Illinois and the denominator of which is Illinois
5base income, and further multiplying the product by the tax
6rate imposed by subsections (a) and (b) of this Section.
7    Any credit earned on or after December 31, 1986 under this
8subsection which is unused in the year the credit is computed
9because it exceeds the tax liability imposed by subsections
10(a) and (b) for that year (whether it exceeds the original
11liability or the liability as later amended) may be carried
12forward and applied to the tax liability imposed by
13subsections (a) and (b) of the 5 taxable years following the
14excess credit year, provided that no credit may be carried
15forward to any year ending on or after December 31, 2003. This
16credit shall be applied first to the earliest year for which
17there is a liability. If there is a credit under this
18subsection from more than one tax year that is available to
19offset a liability the earliest credit arising under this
20subsection shall be applied first.
21    If, during any taxable year ending on or after December
2231, 1986, the tax imposed by subsections (c) and (d) of this
23Section for which a taxpayer has claimed a credit under this
24subsection (i) is reduced, the amount of credit for such tax
25shall also be reduced. Such reduction shall be determined by
26recomputing the credit to take into account the reduced tax

 

 

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1imposed by subsections (c) and (d). If any portion of the
2reduced amount of credit has been carried to a different
3taxable year, an amended return shall be filed for such
4taxable year to reduce the amount of credit claimed.
5    (j) Training expense credit. Beginning with tax years
6ending on or after December 31, 1986 and prior to December 31,
72003, a taxpayer shall be allowed a credit against the tax
8imposed by subsections (a) and (b) under this Section for all
9amounts paid or accrued, on behalf of all persons employed by
10the taxpayer in Illinois or Illinois residents employed
11outside of Illinois by a taxpayer, for educational or
12vocational training in semi-technical or technical fields or
13semi-skilled or skilled fields, which were deducted from gross
14income in the computation of taxable income. The credit
15against the tax imposed by subsections (a) and (b) shall be
161.6% of such training expenses. For partners, shareholders of
17subchapter S corporations, and owners of limited liability
18companies, if the liability company is treated as a
19partnership for purposes of federal and State income taxation,
20there shall be allowed a credit under this subsection (j) to be
21determined in accordance with the determination of income and
22distributive share of income under Sections 702 and 704 and
23subchapter S of the Internal Revenue Code.
24    Any credit allowed under this subsection which is unused
25in the year the credit is earned may be carried forward to each
26of the 5 taxable years following the year for which the credit

 

 

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1is first computed until it is used. This credit shall be
2applied first to the earliest year for which there is a
3liability. If there is a credit under this subsection from
4more than one tax year that is available to offset a liability,
5the earliest credit arising under this subsection shall be
6applied first. No carryforward credit may be claimed in any
7tax year ending on or after December 31, 2003.
8    (k) Research and development credit. For tax years ending
9after July 1, 1990 and prior to December 31, 2003, and
10beginning again for tax years ending on or after December 31,
112004, and ending prior to January 1, 2027, a taxpayer shall be
12allowed a credit against the tax imposed by subsections (a)
13and (b) of this Section for increasing research activities in
14this State. The credit allowed against the tax imposed by
15subsections (a) and (b) shall be equal to 6 1/2% of the
16qualifying expenditures for increasing research activities in
17this State. For partners, shareholders of subchapter S
18corporations, and owners of limited liability companies, if
19the liability company is treated as a partnership for purposes
20of federal and State income taxation, there shall be allowed a
21credit under this subsection to be determined in accordance
22with the determination of income and distributive share of
23income under Sections 702 and 704 and subchapter S of the
24Internal Revenue Code.
25    For purposes of this subsection, "qualifying expenditures"
26means the qualifying expenditures as defined for the federal

 

 

HB0804 Engrossed- 438 -LRB102 10881 SPS 16211 b

1credit for increasing research activities which would be
2allowable under Section 41 of the Internal Revenue Code and
3which are conducted in this State, "qualifying expenditures
4for increasing research activities in this State" means the
5excess of qualifying expenditures for the taxable year in
6which incurred over qualifying expenditures for the base
7period, "qualifying expenditures for the base period" means
8the average of the qualifying expenditures for each year in
9the base period, and "base period" means the 3 taxable years
10immediately preceding the taxable year for which the
11determination is being made.
12    Any credit in excess of the tax liability for the taxable
13year may be carried forward. A taxpayer may elect to have the
14unused credit shown on its final completed return carried over
15as a credit against the tax liability for the following 5
16taxable years or until it has been fully used, whichever
17occurs first; provided that no credit earned in a tax year
18ending prior to December 31, 2003 may be carried forward to any
19year ending on or after December 31, 2003.
20    If an unused credit is carried forward to a given year from
212 or more earlier years, that credit arising in the earliest
22year will be applied first against the tax liability for the
23given year. If a tax liability for the given year still
24remains, the credit from the next earliest year will then be
25applied, and so on, until all credits have been used or no tax
26liability for the given year remains. Any remaining unused

 

 

HB0804 Engrossed- 439 -LRB102 10881 SPS 16211 b

1credit or credits then will be carried forward to the next
2following year in which a tax liability is incurred, except
3that no credit can be carried forward to a year which is more
4than 5 years after the year in which the expense for which the
5credit is given was incurred.
6    No inference shall be drawn from Public Act 91-644 this
7amendatory Act of the 91st General Assembly in construing this
8Section for taxable years beginning before January 1, 1999.
9    It is the intent of the General Assembly that the research
10and development credit under this subsection (k) shall apply
11continuously for all tax years ending on or after December 31,
122004 and ending prior to January 1, 2027, including, but not
13limited to, the period beginning on January 1, 2016 and ending
14on July 6, 2017 (the effective date of Public Act 100-22) this
15amendatory Act of the 100th General Assembly. All actions
16taken in reliance on the continuation of the credit under this
17subsection (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

 

 

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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

 

 

HB0804 Engrossed- 441 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 442 -LRB102 10881 SPS 16211 b

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
18ending after December 31, 1999, a taxpayer who is the
19custodian of one or more qualifying pupils shall be allowed a
20credit against the tax imposed by subsections (a) and (b) of
21this Section for qualified education expenses incurred on
22behalf of the qualifying pupils. The credit shall be equal to
2325% of qualified education expenses, but in no event may the
24total credit under this subsection claimed by a family that is
25the custodian of qualifying pupils exceed (i) $500 for tax
26years ending prior to December 31, 2017, and (ii) $750 for tax

 

 

HB0804 Engrossed- 443 -LRB102 10881 SPS 16211 b

1years ending on or after December 31, 2017. In no event shall a
2credit under this subsection reduce the taxpayer's liability
3under this Act to less than zero. Notwithstanding any other
4provision of law, for taxable years beginning on or after
5January 1, 2017, no taxpayer may claim a credit under this
6subsection (m) if the taxpayer's adjusted gross income for the
7taxable year exceeds (i) $500,000, in the case of spouses
8filing a joint federal tax return or (ii) $250,000, in the case
9of all other taxpayers. This subsection is exempt from the
10provisions of Section 250 of this Act.
11    For purposes of this subsection:
12    "Qualifying pupils" means individuals who (i) are
13residents of the State of Illinois, (ii) are under the age of
1421 at the close of the school year for which a credit is
15sought, and (iii) during the school year for which a credit is
16sought were full-time pupils enrolled in a kindergarten
17through twelfth grade education program at any school, as
18defined in this subsection.
19    "Qualified education expense" means the amount incurred on
20behalf of a qualifying pupil in excess of $250 for tuition,
21book fees, and lab fees at the school in which the pupil is
22enrolled during the regular school year.
23    "School" means any public or nonpublic elementary or
24secondary school in Illinois that is in compliance with Title
25VI of the Civil Rights Act of 1964 and attendance at which
26satisfies the requirements of Section 26-1 of the School Code,

 

 

HB0804 Engrossed- 444 -LRB102 10881 SPS 16211 b

1except that nothing shall be construed to require a child to
2attend any particular public or nonpublic school to qualify
3for the credit under this Section.
4    "Custodian" means, with respect to qualifying pupils, an
5Illinois resident who is a parent, the parents, a legal
6guardian, or the legal guardians of the qualifying pupils.
7    (n) River Edge Redevelopment Zone site remediation tax
8credit.
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

 

 

HB0804 Engrossed- 445 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 446 -LRB102 10881 SPS 16211 b

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
19of Medical Cannabis Program, a surcharge is imposed on all
20taxpayers on income arising from the sale or exchange of
21capital assets, depreciable business property, real property
22used in the trade or business, and Section 197 intangibles of
23an organization registrant under the Compassionate Use of
24Medical Cannabis Program Act. The amount of the surcharge is
25equal to the amount of federal income tax liability for the
26taxable year attributable to those sales and exchanges. The

 

 

HB0804 Engrossed- 447 -LRB102 10881 SPS 16211 b

1surcharge 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

 

 

HB0804 Engrossed- 448 -LRB102 10881 SPS 16211 b

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,
11eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19;
12revised 11-18-20.)
 
13    (Text of Section with the changes made by P.A. 101-8,
14which 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
17imposed on every individual, corporation, trust and estate for
18each taxable year ending after July 31, 1969 on the privilege
19of earning or receiving income in or as a resident of this
20State. Such tax shall be in addition to all other occupation or
21privilege taxes imposed by this State or by any municipal
22corporation or political subdivision thereof.
23    (b) Rates. The tax imposed by subsection (a) of this
24Section shall be determined as follows, except as adjusted by
25subsection (d-1):

 

 

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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.

 

 

HB0804 Engrossed- 450 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 451 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 452 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 453 -LRB102 10881 SPS 16211 b

1provisions of Section 201.5.
2    (b-5) Surcharge; sale or exchange of assets, properties,
3and intangibles of organization gaming licensees. For each of
4taxable years 2019 through 2027, a surcharge is imposed on all
5taxpayers on income arising from the sale or exchange of
6capital assets, depreciable business property, real property
7used in the trade or business, and Section 197 intangibles (i)
8of an organization licensee under the Illinois Horse Racing
9Act of 1975 and (ii) of an organization gaming licensee under
10the Illinois Gambling Act. The amount of the surcharge is
11equal to the amount of federal income tax liability for the
12taxable year attributable to those sales and exchanges. The
13surcharge 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;

 

 

HB0804 Engrossed- 454 -LRB102 10881 SPS 16211 b

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,
23organization license, or racetrack property by a person other
24than the initial licensee to receive the organization gaming
25license is not subject to a surcharge. The Department shall
26adopt rules necessary to implement and administer this

 

 

HB0804 Engrossed- 455 -LRB102 10881 SPS 16211 b

1subsection.
2    (c) Personal Property Tax Replacement Income Tax.
3Beginning on July 1, 1979 and thereafter, in addition to such
4income tax, there is also hereby imposed the Personal Property
5Tax Replacement Income Tax measured by net income on every
6corporation (including Subchapter S corporations), partnership
7and trust, for each taxable year ending after June 30, 1979.
8Such taxes are imposed on the privilege of earning or
9receiving income in or as a resident of this State. The
10Personal Property Tax Replacement Income Tax shall be in
11addition to the income tax imposed by subsections (a) and (b)
12of this Section and in addition to all other occupation or
13privilege taxes imposed by this State or by any municipal
14corporation or political subdivision thereof.
15    (d) Additional Personal Property Tax Replacement Income
16Tax Rates. The personal property tax replacement income tax
17imposed by this subsection and subsection (c) of this Section
18in the case of a corporation, other than a Subchapter S
19corporation and except as adjusted by subsection (d-1), shall
20be an additional amount equal to 2.85% of such taxpayer's net
21income for the taxable year, except that beginning on January
221, 1981, and thereafter, the rate of 2.85% specified in this
23subsection shall be reduced to 2.5%, and in the case of a
24partnership, trust or a Subchapter S corporation shall be an
25additional amount equal to 1.5% of such taxpayer's net income
26for the taxable year.

 

 

HB0804 Engrossed- 456 -LRB102 10881 SPS 16211 b

1    (d-1) Rate reduction for certain foreign insurers. In the
2case of a foreign insurer, as defined by Section 35A-5 of the
3Illinois Insurance Code, whose state or country of domicile
4imposes on insurers domiciled in Illinois a retaliatory tax
5(excluding any insurer whose premiums from reinsurance assumed
6are 50% or more of its total insurance premiums as determined
7under paragraph (2) of subsection (b) of Section 304, except
8that for purposes of this determination premiums from
9reinsurance do not include premiums from inter-affiliate
10reinsurance arrangements), beginning with taxable years ending
11on or after December 31, 1999, the sum of the rates of tax
12imposed by subsections (b) and (d) shall be reduced (but not
13increased) to the rate at which the total amount of tax imposed
14under this Act, net of all credits allowed under this Act,
15shall equal (i) the total amount of tax that would be imposed
16on the foreign insurer's net income allocable to Illinois for
17the taxable year by such foreign insurer's state or country of
18domicile if that net income were subject to all income taxes
19and taxes measured by net income imposed by such foreign
20insurer's state or country of domicile, net of all credits
21allowed or (ii) a rate of zero if no such tax is imposed on
22such income by the foreign insurer's state of domicile. For
23the purposes of this subsection (d-1), an inter-affiliate
24includes 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

 

 

HB0804 Engrossed- 457 -LRB102 10881 SPS 16211 b

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
26Section 250.

 

 

HB0804 Engrossed- 458 -LRB102 10881 SPS 16211 b

1    (e) Investment credit. A taxpayer shall be allowed a
2credit against the Personal Property Tax Replacement Income
3Tax 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

 

 

HB0804 Engrossed- 459 -LRB102 10881 SPS 16211 b

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,

 

 

HB0804 Engrossed- 460 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 461 -LRB102 10881 SPS 16211 b

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,

 

 

HB0804 Engrossed- 462 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 463 -LRB102 10881 SPS 16211 b

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

 

 

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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
14Redevelopment 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,

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

HB0804 Engrossed- 470 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 471 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 472 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 473 -LRB102 10881 SPS 16211 b

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
8credit. For taxable years beginning on or after January 1,
92021, there shall also be allowed a High Impact Business
10construction jobs credit against the tax imposed under
11subsections (a) and (b) of this Section as provided in
12subsections (i) and (j) of Section 5.5 of the Illinois
13Enterprise Zone Act.
14    The credit or credits may not reduce the taxpayer's
15liability to less than zero. If the amount of the credit or
16credits exceeds the taxpayer's liability, the excess may be
17carried forward and applied against the taxpayer's liability
18in succeeding calendar years in the manner provided under
19paragraph (4) of Section 211 of this Act. The credit or credits
20shall be applied to the earliest year for which there is a tax
21liability. If there are credits from more than one taxable
22year that are available to offset a liability, the earlier
23credit shall be applied first.
24    For partners, shareholders of Subchapter S corporations,
25and owners of limited liability companies, if the liability
26company is treated as a partnership for the purposes of

 

 

HB0804 Engrossed- 474 -LRB102 10881 SPS 16211 b

1federal and State income taxation, there shall be allowed a
2credit under this Section to be determined in accordance with
3the determination of income and distributive share of income
4under Sections 702 and 704 and Subchapter S of the Internal
5Revenue Code.
6    The total aggregate amount of credits awarded under the
7Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
8amendatory 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
11Section 250.
12    (i) Credit for Personal Property Tax Replacement Income
13Tax. For tax years ending prior to December 31, 2003, a credit
14shall be allowed against the tax imposed by subsections (a)
15and (b) of this Section for the tax imposed by subsections (c)
16and (d) of this Section. This credit shall be computed by
17multiplying the tax imposed by subsections (c) and (d) of this
18Section by a fraction, the numerator of which is base income
19allocable to Illinois and the denominator of which is Illinois
20base income, and further multiplying the product by the tax
21rate imposed by subsections (a) and (b) of this Section.
22    Any credit earned on or after December 31, 1986 under this
23subsection which is unused in the year the credit is computed
24because it exceeds the tax liability imposed by subsections
25(a) and (b) for that year (whether it exceeds the original
26liability or the liability as later amended) may be carried

 

 

HB0804 Engrossed- 475 -LRB102 10881 SPS 16211 b

1forward and applied to the tax liability imposed by
2subsections (a) and (b) of the 5 taxable years following the
3excess credit year, provided that no credit may be carried
4forward to any year ending on or after December 31, 2003. This
5credit shall be applied first to the earliest year for which
6there is a liability. If there is a credit under this
7subsection from more than one tax year that is available to
8offset a liability the earliest credit arising under this
9subsection shall be applied first.
10    If, during any taxable year ending on or after December
1131, 1986, the tax imposed by subsections (c) and (d) of this
12Section for which a taxpayer has claimed a credit under this
13subsection (i) is reduced, the amount of credit for such tax
14shall also be reduced. Such reduction shall be determined by
15recomputing the credit to take into account the reduced tax
16imposed by subsections (c) and (d). If any portion of the
17reduced amount of credit has been carried to a different
18taxable year, an amended return shall be filed for such
19taxable year to reduce the amount of credit claimed.
20    (j) Training expense credit. Beginning with tax years
21ending on or after December 31, 1986 and prior to December 31,
222003, a taxpayer shall be allowed a credit against the tax
23imposed by subsections (a) and (b) under this Section for all
24amounts paid or accrued, on behalf of all persons employed by
25the taxpayer in Illinois or Illinois residents employed
26outside of Illinois by a taxpayer, for educational or

 

 

HB0804 Engrossed- 476 -LRB102 10881 SPS 16211 b

1vocational training in semi-technical or technical fields or
2semi-skilled or skilled fields, which were deducted from gross
3income in the computation of taxable income. The credit
4against the tax imposed by subsections (a) and (b) shall be
51.6% of such training expenses. For partners, shareholders of
6subchapter S corporations, and owners of limited liability
7companies, if the liability company is treated as a
8partnership for purposes of federal and State income taxation,
9there shall be allowed a credit under this subsection (j) to be
10determined in accordance with the determination of income and
11distributive share of income under Sections 702 and 704 and
12subchapter S of the Internal Revenue Code.
13    Any credit allowed under this subsection which is unused
14in the year the credit is earned may be carried forward to each
15of the 5 taxable years following the year for which the credit
16is first computed until it is used. This credit shall be
17applied first to the earliest year for which there is a
18liability. If there is a credit under this subsection from
19more than one tax year that is available to offset a liability,
20the earliest credit arising under this subsection shall be
21applied first. No carryforward credit may be claimed in any
22tax year ending on or after December 31, 2003.
23    (k) Research and development credit. For tax years ending
24after July 1, 1990 and prior to December 31, 2003, and
25beginning again for tax years ending on or after December 31,
262004, and ending prior to January 1, 2027, a taxpayer shall be

 

 

HB0804 Engrossed- 477 -LRB102 10881 SPS 16211 b

1allowed a credit against the tax imposed by subsections (a)
2and (b) of this Section for increasing research activities in
3this State. The credit allowed against the tax imposed by
4subsections (a) and (b) shall be equal to 6 1/2% of the
5qualifying expenditures for increasing research activities in
6this State. For partners, shareholders of subchapter S
7corporations, and owners of limited liability companies, if
8the liability company is treated as a partnership for purposes
9of federal and State income taxation, there shall be allowed a
10credit under this subsection to be determined in accordance
11with the determination of income and distributive share of
12income under Sections 702 and 704 and subchapter S of the
13Internal Revenue Code.
14    For purposes of this subsection, "qualifying expenditures"
15means the qualifying expenditures as defined for the federal
16credit for increasing research activities which would be
17allowable under Section 41 of the Internal Revenue Code and
18which are conducted in this State, "qualifying expenditures
19for increasing research activities in this State" means the
20excess of qualifying expenditures for the taxable year in
21which incurred over qualifying expenditures for the base
22period, "qualifying expenditures for the base period" means
23the average of the qualifying expenditures for each year in
24the base period, and "base period" means the 3 taxable years
25immediately preceding the taxable year for which the
26determination is being made.

 

 

HB0804 Engrossed- 478 -LRB102 10881 SPS 16211 b

1    Any credit in excess of the tax liability for the taxable
2year may be carried forward. A taxpayer may elect to have the
3unused credit shown on its final completed return carried over
4as a credit against the tax liability for the following 5
5taxable years or until it has been fully used, whichever
6occurs first; provided that no credit earned in a tax year
7ending prior to December 31, 2003 may be carried forward to any
8year ending on or after December 31, 2003.
9    If an unused credit is carried forward to a given year from
102 or more earlier years, that credit arising in the earliest
11year will be applied first against the tax liability for the
12given year. If a tax liability for the given year still
13remains, the credit from the next earliest year will then be
14applied, and so on, until all credits have been used or no tax
15liability for the given year remains. Any remaining unused
16credit or credits then will be carried forward to the next
17following year in which a tax liability is incurred, except
18that no credit can be carried forward to a year which is more
19than 5 years after the year in which the expense for which the
20credit is given was incurred.
21    No inference shall be drawn from Public Act 91-644 this
22amendatory Act of the 91st General Assembly in construing this
23Section for taxable years beginning before January 1, 1999.
24    It is the intent of the General Assembly that the research
25and development credit under this subsection (k) shall apply
26continuously for all tax years ending on or after December 31,

 

 

HB0804 Engrossed- 479 -LRB102 10881 SPS 16211 b

12004 and ending prior to January 1, 2027, including, but not
2limited to, the period beginning on January 1, 2016 and ending
3on July 6, 2017 (the effective date of Public Act 100-22) this
4amendatory Act of the 100th General Assembly. All actions
5taken in reliance on the continuation of the credit under this
6subsection (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

 

 

HB0804 Engrossed- 480 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 481 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 482 -LRB102 10881 SPS 16211 b

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
7ending after December 31, 1999, a taxpayer who is the
8custodian of one or more qualifying pupils shall be allowed a
9credit against the tax imposed by subsections (a) and (b) of
10this Section for qualified education expenses incurred on
11behalf of the qualifying pupils. The credit shall be equal to
1225% of qualified education expenses, but in no event may the
13total credit under this subsection claimed by a family that is
14the custodian of qualifying pupils exceed (i) $500 for tax
15years ending prior to December 31, 2017, and (ii) $750 for tax
16years ending on or after December 31, 2017. In no event shall a
17credit under this subsection reduce the taxpayer's liability
18under this Act to less than zero. Notwithstanding any other
19provision of law, for taxable years beginning on or after
20January 1, 2017, no taxpayer may claim a credit under this
21subsection (m) if the taxpayer's adjusted gross income for the
22taxable year exceeds (i) $500,000, in the case of spouses
23filing a joint federal tax return or (ii) $250,000, in the case
24of all other taxpayers. This subsection is exempt from the
25provisions of Section 250 of this Act.
26    For purposes of this subsection:

 

 

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1    "Qualifying pupils" means individuals who (i) are
2residents of the State of Illinois, (ii) are under the age of
321 at the close of the school year for which a credit is
4sought, and (iii) during the school year for which a credit is
5sought were full-time pupils enrolled in a kindergarten
6through twelfth grade education program at any school, as
7defined in this subsection.
8    "Qualified education expense" means the amount incurred on
9behalf of a qualifying pupil in excess of $250 for tuition,
10book fees, and lab fees at the school in which the pupil is
11enrolled during the regular school year.
12    "School" means any public or nonpublic elementary or
13secondary school in Illinois that is in compliance with Title
14VI of the Civil Rights Act of 1964 and attendance at which
15satisfies the requirements of Section 26-1 of the School Code,
16except that nothing shall be construed to require a child to
17attend any particular public or nonpublic school to qualify
18for the credit under this Section.
19    "Custodian" means, with respect to qualifying pupils, an
20Illinois resident who is a parent, the parents, a legal
21guardian, or the legal guardians of the qualifying pupils.
22    (n) River Edge Redevelopment Zone site remediation tax
23credit.
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

 

 

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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

 

 

HB0804 Engrossed- 485 -LRB102 10881 SPS 16211 b

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

 

 

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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
8of Medical Cannabis Program, a surcharge is imposed on all
9taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles of
12an organization registrant under the Compassionate Use of
13Medical Cannabis Program Act. The amount of the surcharge is
14equal to the amount of federal income tax liability for the
15taxable year attributable to those sales and exchanges. The
16surcharge 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

 

 

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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
26effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;

 

 

HB0804 Engrossed- 488 -LRB102 10881 SPS 16211 b

1101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.)
 
2    Section 90-30. The Retailers' Occupation Tax Act is
3amended by adding Section 5k-5 as follows:
 
4    (35 ILCS 120/5k-5 new)
5    Sec. 5k-5. Building materials exemption; Clean Energy
6Empowerment Zone. Each retailer who makes a sale of building
7materials to be incorporated into renewable energy projects in
8a Clean Energy Empowerment Zone established under the Energy
9Community Reinvestment Act may deduct receipts from such sales
10when calculating the tax imposed by this Act. A renewable
11energy enterprise or other entity shall not make tax-free
12purchases under this Section unless it has an active exemption
13certificate at the time of purchase, which shall be issued by
14the Department in a form prescribed by the Department. The
15Department shall adopt by rule all other requirements
16necessary for the implementation and operation of this
17Section.
 
18    Section 90-35. The School Code is amended by adding
19Section 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

 

 

HB0804 Engrossed- 489 -LRB102 10881 SPS 16211 b

1growing and important sector of the State's economy and that
2significant job opportunity exists in the sector. Consistent
3with the Clean Jobs, Workforce and Contractor Equity Act, the
4Board shall participate in the development of the clean energy
5jobs curriculum convened by the Department of Commerce and
6Economic Opportunity. The Board shall identify and
7collaboratively with stakeholders identified by the Board
8develop curriculum based on anticipated clean energy job
9availability and growth including participation from
10stakeholders engaged in delivering existing clean energy jobs
11workforce development programs in Illinois, specifically those
12programs tailored to members of economically disadvantaged
13communities, members of environmental justice communities,
14communities of color, persons with a criminal record, persons
15who are or were in the child welfare system, displaced energy
16workers, and members of any of these groups who are also women
17or transgender persons, as well as including youth. Clean
18energy jobs considered shall be consistent with "clean energy
19jobs" as defined in the Clean Jobs, Workforce and Contractor
20Equity Act, including, but not limited to, solar photovoltaic,
21solar thermal, wind energy, energy efficiency, site
22assessment, sales, and back office.
23    (b) In the development of the clean energy jobs
24curriculum, the Board shall consider broad occupational
25training applicable to the general construction sector as well
26as sector-specific skills, including training on the

 

 

HB0804 Engrossed- 490 -LRB102 10881 SPS 16211 b

1manufacture and installation of healthier building materials
2that contain fewer hazardous chemicals.
3    (c) Consideration should be given to inclusion of skills
4applicable to trainees for whom secondary and higher education
5has not been available.
 
6    Section 90-40. The Public Utilities Act is amended by
7changing Sections 2-107, 8-103B, 9-220.3, 9-227, 10-104,
816-107, 16-107.5, 16-107.6, 16-111.5, and 16-128B and by
9adding Sections 4-604, 4-605, 8-104.1, 8-512, 9-222.1B,
1016-105.17, 16-107.7, 16-107.8, 16-108, 16-108.5, 16-108.9,
1116-108.18, 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
14Springfield, but the Commission may, with the approval of the
15Governor, establish and maintain branch offices at places
16other than the seat of government. Such office shall be open
17for business between the hours of 8:30 a.m. and 5:00 p.m.
18throughout the year, and one or more responsible persons to be
19designated by the executive director shall be on duty at all
20times in immediate charge thereof.
21    The Commission shall hold stated meetings at least once a
22month and may hold such special meetings as it may deem
23necessary at any place within the State. At each regular and
24special meeting that is open to the public, members of the

 

 

HB0804 Engrossed- 491 -LRB102 10881 SPS 16211 b

1public shall be afforded time, subject to reasonable
2constraints, to make comments to or to ask questions of the
3Commission. In any contested or rulemaking proceeding, at the
4request of any party or at least 5 members of the public, the
5Commission shall hold at least one public hearing, at a time
6and place accessible and convenient for affected customers to
7participate, where members of the public are invited to
8participate and present public comments in accordance with 2
9Ill. Adm. Code 1700.10. The hearing must take place at least 30
10days prior to the Commission's final order on the case.
11    The Commission shall provide a web site and a toll-free
12telephone number to accept comments from Illinois residents
13regarding any matter under the auspices of the Commission or
14before the Commission. The Commission staff shall report, in a
15manner established by the Commission that is consistent with
16the Commission's rules regarding ex parte communications, to
17the full Commission comments and suggestions received through
18both venues before all relevant votes of the Commission.
19    The Commission may, for the authentication of its records,
20process and proceedings, adopt, keep and use a common seal, of
21which seal judicial notice shall be taken in all courts of this
22State; and any process, notice, order or other paper which the
23Commission may be authorized by law to issue shall be deemed
24sufficient if signed and certified by the Chairman of the
25Commission or his or her designee, either by hand or by
26facsimile, and with such seal attached; and all acts, orders,

 

 

HB0804 Engrossed- 492 -LRB102 10881 SPS 16211 b

1proceedings, rules, entries, minutes, schedules and records of
2the Commission, and all reports and documents filed with the
3Commission, may be proved in any court of this State by a copy
4thereof, certified to by the Chairman of the Commission, with
5the seal of the Commission attached.
6    Notwithstanding any other provision of this Section, the
7Commission's established procedures for accepting testimony
8from Illinois residents on matters pending before the
9Commission shall be consistent with the Commission's rules
10regarding 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
14ethical conduct and transparency.
15    (a) It is the policy of this State that, as regulated,
16monopoly entities providing essential services, public
17utilities must adhere to the highest standards of ethical
18conduct. Recent events have demonstrated that at least one
19public utility in this State has not adhered to the standards
20of conduct expected by the State, and as such, has failed to
21ensure safe, reliable service for customers at reasonable,
22affordable rates. The General Assembly finds this breach of
23the public trust, which has resulted in unreasonable rates for
24some public utility customers, to be exceptionally concerning.
25    (b) It is in the public interest to ensure ethical public

 

 

HB0804 Engrossed- 493 -LRB102 10881 SPS 16211 b

1utility conduct of the highest standards. It is therefore
2necessary for the public interest, safety, and welfare of the
3State and of public utility customers to develop rigorous
4ethical standards with limitations on and heightened scrutiny
5of public utility actions, expenditures and contracting, and
6to provide increased transparency to ensure ethical public
7utility conduct. The standards set forth in this Section and
8in the Illinois Administrative Code rules implementing this
9Section shall apply, to the extent practicable, to electric
10and natural gas public utilities and their holding or parent
11companies, affiliates, and service companies. The Commission
12shall have the authority to create rules and emergency rules,
13where applicable, to effectuate this Section.
14    (c) Public Utility Ethics Inspector. To ensure public
15utilities meet the highest level of ethical standards,
16including, but not limited to, those standards described in
17this Section, the Commission shall, within 60 days after the
18effective date of this amendatory Act of the 102nd General
19Assembly, establish an Accountability Division at the
20Commission, and shall create a new position at the Commission
21of Public Utility Ethics Inspector whose responsibilities
22shall 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

 

 

HB0804 Engrossed- 494 -LRB102 10881 SPS 16211 b

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
19employment of the Public Utility Ethics Inspector by the
20Commission, the Public Utility Ethics Inspector shall
21establish new positions at the Illinois Commerce Commission
22within the Accountability Division of independent monitors for
23each public utility in the State. The role of the independent
24monitors shall be to oversee electric and natural gas public
25utilities' compliance with the standards described in this
26Section, with 83 Illinois Administrative Code, and with any

 

 

HB0804 Engrossed- 495 -LRB102 10881 SPS 16211 b

1other portion of the Code or any statutory obligation
2regarding standards of ethical conduct. The independent
3monitors may also have other duties as deemed appropriate by
4the Public Utility Ethics Inspector. Independent monitors
5shall:
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

 

 

HB0804 Engrossed- 496 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 497 -LRB102 10881 SPS 16211 b

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
5after the effective date of this amendatory Act of the 102nd
6General Assembly, each public utility in the State shall
7establish a new position of Chief Compliance and Ethics
8Officer. The Chief Compliance and Ethics Officer shall be
9employed by the public utility but shall serve as a liaison
10between the public utility and the public utility's
11independent monitor. The Chief Compliance and Ethics Officer
12shall be responsible for ensuring the public utility complies
13with the highest standards of ethical conduct, including, but
14not limited to, complying with the standards described in this
15Section, in the Illinois Administrative Code, and in any other
16applicable authority. The Chief Compliance and Ethics Officer
17shall oversee the creation and implementation of training for
18every director, officer, employee, contractor, consultant,
19lobbyist, vendor, agent, and business partner of the public
20utility on applicable ethics guidelines. The Chief Compliance
21and Ethics Officer shall oversee the creation and
22implementation of a centralized reporting system for which
23every director, officer, employee, contractor, consultant,
24lobbyist, vendor, agent, and business partner shall have
25training and submission access. The reporting system shall, at
26minimum, be used to document every instance of communication

 

 

HB0804 Engrossed- 498 -LRB102 10881 SPS 16211 b

1with a public official or their staff, and shall be designed to
2ensure efficient review by the independent monitor for
3potential violations of the standards in this Section and in
4the Illinois Administrative Code. The Chief Compliance and
5Ethics Officer shall oversee the ongoing monitoring of all
6contractors, consultants or vendors who are contracted for the
7purpose of carrying out lobbying or other duties that involve
8interacting with public officials or their staff to ensure
9their continued compliance with the applicable ethical
10standards and to ensure they are providing value to the
11business.
12    The Chief Compliance and Ethics Officer shall establish at
13the public utility internal controls, codes, policies,
14procedures, practices, and reporting to comply with the
15standards in this Section and in the Illinois Administrative
16Code, 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.

 

 

HB0804 Engrossed- 499 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 500 -LRB102 10881 SPS 16211 b

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
6responsible for reporting to the public utility's independent
7monitor any conduct that is in violation of the standards set
8forth in this Section or in violation of sections of the
9Illinois Administrative Code implementing these rules and any
10other authority governing the public utility's ethical
11conduct, including disciplinary action taken in response. In
12coordination with the public utility's independent monitor,
13the Chief Compliance and Ethics Officer shall be responsible
14for internal disciplinary actions at the public utility for
15violations of such standards.
16    At least annually, the Chief Compliance and Ethics
17Officer, in coordination with the independent monitor, shall
18review the utility's internal controls, policies, practices
19and procedures for their continued effectiveness to ensure the
20highest standards of ethical conduct among the public
21utility's directors, officers, employees, contractors,
22consultants, lobbyists, vendors, agents and business partners.
23    (f) A public utility shall, within 90 days after this
24amendatory act of the 102nd General Assembly, develop and
25implement internal controls, policies, and procedures to
26achieve the following objectives:

 

 

HB0804 Engrossed- 501 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 502 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 503 -LRB102 10881 SPS 16211 b

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
12effective date of this Amendatory Act of the 102nd General
13Assembly, initiate an emergency rulemaking to add additional
14requirements to Title 83 of the Illinois Administrative Code
15to 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,

 

 

HB0804 Engrossed- 504 -LRB102 10881 SPS 16211 b

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
8to the Commission shall be made public and redactions shall be
9limited to the maximum extent practicable. Only information
10which is critical to system security shall be redacted;
11information in which the public utility claims a business
12interest shall not be deemed confidential or redacted. The
13Public Utilities Ethics Inspector shall establish a procedure
14for making unredacted reports available to interested
15stakeholders who establish good cause that receipt of an
16unredacted report is in the public interest.
17    Adoption and implementation of these emergency rules is
18deemed to be necessary for the public interest, safety, and
19welfare.
20    (i) Noncompliance. In the event the Public Utility Ethics
21Inspector finds a public utility does not comply with any
22portion of this Section, or with the rules effectuated by this
23Section, the Public Utility Ethics Inspector shall issue a
24Report to the Commission detailing the public utility's
25deficiencies. The Commission shall have authority to open an
26investigation and shall order remediation and penalties as

 

 

HB0804 Engrossed- 505 -LRB102 10881 SPS 16211 b

1appropriate.
2    (j) Each year, each public utility in the State shall
3remit amounts necessary for the State to pay the wages,
4overhead, travel expenses, and other costs of that public
5utility's independent monitor as well as that public utility's
6proportional share, by number of customers, of the Public
7Utility Ethics Inspector's wages, overhead, travel expenses,
8and other costs. These expenses shall not be recoverable in
9rates.
10    (k) A public utility's costs of complying with these
11requirements, including wages and other operating expenses,
12shall not be recoverable in rates.
13    (l) Where a public utility is the subject of a federal or
14State criminal investigation, or where the Commission
15initiates an investigation against a public utility for any
16violation of the standards set forth in this Section or
17Illinois Administrative Rules implementing this Section, the
18utility's costs related to such investigation shall not be
19recoverable 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
23ethical and criminal misconduct shall not be tolerated. The
24General Assembly finds it necessary to collect restitution, to
25be distributed as described in subsection (d), from a public

 

 

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1utility who has been found guilty of violations of criminal
2law or who has entered into a Deferred Prosecution Agreement
3that details violations of criminal law.
4    (b) In light of such violations, the Illinois Commerce
5Commission shall, within 150 days after the effective date of
6this amendatory Act of the 102nd General Assembly, initiate an
7investigation into amounts necessary to be refunded to
8customers to restore funds to the State and to ratepayers that
9were collected by the electric public utility Commonwealth
10Edison Company as a result of ethical misconduct. The
11investigation shall conclude no later than 270 days following
12initiation, and shall be conducted as a contested proceeding.
13The investigation shall calculate benefits received by the
14public utility that were instituted as a result of illegal and
15unethical conduct, as set forth in the Deferred Prosecution
16Agreement of July 16, 2020 between the United States Attorney
17for the Northern District of Illinois and Commonwealth Edison
18Company, for passage of the Energy Infrastructure
19Modernization Act of 2011. The amount shall be no less than the
20total return on equity recovered for investments in
21infrastructure 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
24calculate a schedule for remittance to state funds and to
25ratepayers, over a period of no more than 4 years, to be paid
26by the public utility from profits, returns, or shareholder

 

 

HB0804 Engrossed- 507 -LRB102 10881 SPS 16211 b

1dollars. No costs related to the investigation, restitution,
2or refunds may be recoverable through rates.
3    (d) Funds collected pursuant to this Section shall be
4repaid 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
18measures.
19    (a) It is the policy of the State that electric utilities
20are required to use cost-effective energy efficiency and
21demand-response measures to reduce delivery load. Requiring
22investment in cost-effective energy efficiency and
23demand-response measures will reduce direct and indirect costs
24to consumers by decreasing environmental impacts and by
25avoiding or delaying the need for new generation,

 

 

HB0804 Engrossed- 508 -LRB102 10881 SPS 16211 b

1transmission, and distribution infrastructure. It serves the
2public interest to allow electric utilities to recover costs
3for reasonably and prudently incurred expenditures for energy
4efficiency and demand-response measures. As used in this
5Section, "cost-effective" means that the measures satisfy the
6total resource cost test. The low-income measures described in
7subsection (c) of this Section shall not be required to meet
8the total resource cost test. For purposes of this Section,
9the terms "energy-efficiency", "demand-response", "electric
10utility", and "total resource cost test" have the meanings set
11forth in the Illinois Power Agency Act. "Black, indigenous,
12and people of color" and "BIPOC" means people who are members
13of the groups described in subparagraphs (a) through (e) of
14paragraph (A) of subsection (1) of Section 2 of the Business
15Enterprise for Minorities, Women, and Persons with
16Disabilities Act. "Expanding Clean Energy Entrepreneurship and
17Contractor Incubator Network Program," "Clean Energy Black,
18Indigenous, and People of Color Primes Contractor
19Accelerator," "Returning Resident Clean Energy Training
20Program," and "Clean Energy Workforce Training Hubs Program"
21are as set forth in the Clean Jobs, Workforce and Contractor
22Equity Act.
23    (a-5) This Section applies to electric utilities serving
24more than 500,000 retail customers in the State for those
25multi-year plans commencing after December 31, 2017.
26    (b) For purposes of this Section, electric utilities

 

 

HB0804 Engrossed- 509 -LRB102 10881 SPS 16211 b

1subject to this Section that serve more than 3,000,000 retail
2customers in the State shall be deemed to have achieved a
3cumulative persisting annual savings of 6.6% from energy
4efficiency measures and programs implemented during the period
5beginning January 1, 2012 and ending December 31, 2017, which
6percent is based on the deemed average weather normalized
7sales of electric power and energy during calendar years 2014,
82015, and 2016 of 88,000,000 MWhs. For the purposes of this
9subsection (b) and subsection (b-5), the 88,000,000 MWhs of
10deemed electric power and energy sales shall be reduced by the
11number of MWhs equal to the sum of the annual consumption of
12customers that are exempt from subsections (a) through (j) of
13this Section under subsection (l) of this Section, as averaged
14across the calendar years 2014, 2015, and 2016. After 2017,
15the deemed value of cumulative persisting annual savings from
16energy efficiency measures and programs implemented during the
17period beginning January 1, 2012 and ending December 31, 2017,
18shall be reduced each year, as follows, and the applicable
19value shall be applied to and count toward the utility's
20achievement of the cumulative persisting annual savings goals
21set 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

 

 

HB0804 Engrossed- 510 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 511 -LRB102 10881 SPS 16211 b

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
18annual savings" means the total electric energy savings in a
19given year from measures installed in that year or in previous
20years, but no earlier than January 1, 2012, that are still
21operational and providing savings in that year because the
22measures have not yet reached the end of their useful lives.
23    (b-5) Beginning in 2018, electric utilities subject to
24this Section that serve more than 3,000,000 retail customers
25in the State shall achieve the following cumulative persisting
26annual savings goals, as modified by subsection (f) of this

 

 

HB0804 Engrossed- 512 -LRB102 10881 SPS 16211 b

1Section and as compared to the deemed baseline of 88,000,000
2MWhs of electric power and energy sales set forth in
3subsection (b), as reduced by the number of MWhs equal to the
4sum of the annual consumption of customers that are exempt
5from subsections (a) through (j) of this Section under
6subsection (l) of this Section as averaged across the calendar
7years 2014, 2015, and 2016, through the implementation of
8energy efficiency measures during the applicable year and in
9prior 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

 

 

HB0804 Engrossed- 513 -LRB102 10881 SPS 16211 b

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
11Commission shall establish additional cumulative persisting
12annual savings goals for the years 2031 through 2035. No later
13than December 31, 2024, the Illinois Commerce Commission shall
14establish additional cumulative persisting annual savings
15goals for the years 2036 through 2040. The Commission shall
16also establish additional cumulative persisting annual savings
17goals every 5 years thereafter to ensure utilities always have
18goals that extend at least 11 years into the future. The
19cumulative persisting annual savings goals beyond the year
202030 shall increase by 0.9 percentage points per year, absent
21a Commission decision to initiate a proceeding to consider
22establishing goals that increase by more or less than that
23amount. Such a proceeding must be conducted in accordance with
24the procedures described in subsection (f) of this Section. If
25such a proceeding is initiated, the cumulative persisting
26annual savings goals established by the Commission through

 

 

HB0804 Engrossed- 514 -LRB102 10881 SPS 16211 b

1that proceeding shall reflect the Commission's best estimate
2of the maximum amount of additional savings that are forecast
3to be cost-effectively achievable unless such best estimates
4would result in goals that represent less than 0.5 percentage
5point annual increases in total cumulative persisting annual
6savings. The Commission may only establish goals that
7represent less than 0.5 percentage point annual increases in
8cumulative persisting annual savings if it can demonstrate,
9based on clear and convincing evidence and through independent
10analysis, that 0.5 percentage point increases are not
11cost-effectively achievable. The Commission shall inform its
12decision based on an energy efficiency potential study that
13conforms to the requirements of subsection (f-5) of this
14Section.
15    (b-10) For purposes of this Section, electric utilities
16subject to this Section that serve less than 3,000,000 retail
17customers but more than 500,000 retail customers in the State
18shall be deemed to have achieved a cumulative persisting
19annual savings of 6.6% from energy efficiency measures and
20programs implemented during the period beginning January 1,
212012 and ending December 31, 2017, which is based on the deemed
22average weather normalized sales of electric power and energy
23during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
24For the purposes of this subsection (b-10) and subsection
25(b-15), the 36,900,000 MWhs of deemed electric power and
26energy sales shall be reduced by the number of MWhs equal to

 

 

HB0804 Engrossed- 515 -LRB102 10881 SPS 16211 b

1the sum of the annual consumption of customers that are exempt
2from subsections (a) through (j) of this Section under
3subsection (l) of this Section, as averaged across the
4calendar years 2014, 2015, and 2016. After 2017, the deemed
5value of cumulative persisting annual savings from energy
6efficiency measures and programs implemented during the period
7beginning January 1, 2012 and ending December 31, 2017, shall
8be reduced each year, as follows, and the applicable value
9shall be applied to and count toward the utility's achievement
10of the cumulative persisting annual savings goals set forth in
11subsection (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

 

 

HB0804 Engrossed- 516 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 517 -LRB102 10881 SPS 16211 b

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
8this Section that serve less than 3,000,000 retail customers
9but more than 500,000 retail customers in the State shall
10achieve the following cumulative persisting annual savings
11goals, as modified by subsection (b-20) and subsection (f) of
12this Section and as compared to the deemed baseline as reduced
13by the number of MWhs equal to the sum of the annual
14consumption of customers that are exempt from subsections (a)
15through (j) of this Section under subsection (l) of this
16Section as averaged across the calendar years 2014, 2015, and
172016, through the implementation of energy efficiency measures
18during the applicable year and in prior years, but no earlier
19than 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

 

 

HB0804 Engrossed- 518 -LRB102 10881 SPS 16211 b

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
21Commission shall establish additional cumulative persisting
22annual savings goals for the years 2031 through 2035. No later
23than December 31, 2024, the Illinois Commerce Commission shall
24establish additional cumulative persisting annual savings
25goals for the years 2036 through 2040. The Commission shall
26also establish additional cumulative persisting annual savings

 

 

HB0804 Engrossed- 519 -LRB102 10881 SPS 16211 b

1goals every 5 years thereafter to ensure utilities always have
2goals that extend at least 11 years into the future. The
3cumulative persisting annual savings goals beyond the year
42030 shall increase by 0.6 percentage points per year, absent
5a Commission decision to initiate a proceeding to consider
6establishing goals that increase by more or less than that
7amount. Such a proceeding must be conducted in accordance with
8the procedures described in subsection (f) of this Section. If
9such a proceeding is initiated, the cumulative persisting
10annual savings goals established by the Commission through
11that proceeding shall reflect the Commission's best estimate
12of the maximum amount of additional savings that are forecast
13to be cost-effectively achievable unless such best estimates
14would result in goals that represent less than 0.4 percentage
15point annual increases in total cumulative persisting annual
16savings. The Commission may only establish goals that
17represent less than 0.4 percentage point annual increases in
18cumulative persisting annual savings if it can demonstrate,
19based on clear and convincing evidence and through independent
20analysis, that 0.4 percentage point increases are not
21cost-effectively achievable. The Commission shall inform its
22decision based on an energy efficiency potential study that
23conforms to the requirements of subsection (f-5) of this
24Section.
25    The difference between the cumulative persisting annual
26savings goal for the applicable calendar year and the

 

 

HB0804 Engrossed- 520 -LRB102 10881 SPS 16211 b

1cumulative persisting annual savings goal for the immediately
2preceding calendar year is 0.8% for the period of January 1,
32018 through December 31, 2025 and 0.6% for the period of
4January 1, 2026 through December 31, 2030.
5    (b-20) Each electric utility subject to this Section may
6include cost-effective voltage optimization measures in its
7plans submitted under subsections (f) and (g) of this Section,
8and the costs incurred by a utility to implement the measures
9under a Commission-approved plan shall be recovered under the
10provisions of Article IX or Section 16-108.5 of this Act. For
11purposes of this Section, the measure life of voltage
12optimization measures shall be 15 years. The measure life
13period is independent of the depreciation rate of the voltage
14optimization assets deployed. Utilities may claim savings from
15voltage optimization on circuits for more than 15 years if
16they can demonstrate that they have made additional
17investments necessary to enable voltage optimization savings
18to continue beyond 15 years. Such demonstrations must be
19subject to the review of independent evaluation.
20    Within 270 days after June 1, 2017 (the effective date of
21Public Act 99-906), an electric utility that serves less than
223,000,000 retail customers but more than 500,000 retail
23customers in the State shall file a plan with the Commission
24that identifies the cost-effective voltage optimization
25investment the electric utility plans to undertake through
26December 31, 2024. The Commission, after notice and hearing,

 

 

HB0804 Engrossed- 521 -LRB102 10881 SPS 16211 b

1shall approve or approve with modification the plan within 120
2days after the plan's filing and, in the order approving or
3approving with modification the plan, the Commission shall
4adjust the applicable cumulative persisting annual savings
5goals set forth in subsection (b-15) to reflect any amount of
6cost-effective energy savings approved by the Commission that
7is greater than or less than the following cumulative
8persisting annual savings values attributable to voltage
9optimization 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.

 

 

HB0804 Engrossed- 522 -LRB102 10881 SPS 16211 b

1    (b-25) In the event an electric utility jointly offers an
2energy efficiency measure or program with a gas utility under
3plans approved under this Section and Section 8-104 of this
4Act, the electric utility may continue offering the program,
5including the gas energy efficiency measures, in the event the
6gas utility discontinues funding the program. In that event,
7the energy savings value associated with such other fuels
8shall be converted to electric energy savings on an equivalent
9Btu basis for the premises. However, the electric utility
10shall prioritize programs for low-income residential customers
11to the extent practicable. An electric utility may recover the
12costs of offering the gas energy efficiency measures under
13this subsection (b-25).
14    For those energy efficiency measures or programs that save
15both electricity and other fuels but are not jointly offered
16with a gas utility under plans approved under this Section and
17Section 8-104 or not offered with an affiliated gas utility
18under paragraph (6) of subsection (f) of Section 8-104 of this
19Act, the electric utility may count savings of fuels other
20than electricity toward the achievement of its annual savings
21goal, and the energy savings value associated with such other
22fuels shall be converted to electric energy savings on an
23equivalent Btu basis at the premises.
24    In no event shall more than 10% of each year's applicable
25annual total savings requirement incremental goal as defined
26in paragraph (7.5) (7) of subsection (g) of this Section be met

 

 

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1through savings of fuels other than electricity.
2    (b-27) Beginning in 2022, an electric utility may offer
3and promote measures that electrify space heating, water
4heating, cooling, drying, cooking, industrial processes, and
5other building and industrial end uses that would otherwise be
6served by combustion of fossil fuel at the premises, provided
7that the electrification measures reduce total energy
8consumption at the premises. The electric utility may count
9the reduction in energy consumption at the premises toward
10achievement of its annual savings goals. The reduction in
11energy consumption at the premises shall be calculated as the
12difference between: (A) the reduction in Btu consumption of
13fossil fuels as a result of electrification, converted to
14kilowatt-hour equivalents by dividing by 3,412 Btu's per
15kilowatt hour; and (B) the increase in kilowatt hours of
16electricity consumption resulting from the displacement of
17fossil fuel consumption as a result of electrification. An
18electric utility may recover the costs of offering and
19promoting electrification measures under this subsection
20(b-27).
21    In no event shall electrification savings counted toward
22each year's applicable annual total savings requirement, as
23defined in paragraph (7.5) of subsection (g) of this Section,
24be 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;

 

 

HB0804 Engrossed- 524 -LRB102 10881 SPS 16211 b

1    and
2        (3) 15% per year for 2030 and all subsequent years.
3In addition, a minimum of 25% of all electrification savings
4counted toward a utility's applicable annual total savings
5requirement must be from electrification of end uses in
6low-income housing. The limitations on electrification savings
7that may be counted toward a utility's annual savings goals
8are separate from and in addition to the subsection (b-25)
9limitations governing the counting of the other fuel savings
10resulting from efficiency measures and programs.
11    As part of the annual informational filing to the
12Commission that is required under paragraph (9) of subsection
13(g) of this Section, each utility shall identify the specific
14electrification measures offered under this subjection (b-27);
15the quantity of each electrification measure that was
16installed by its customers; the average total cost, average
17utility cost, average reduction in fossil fuel consumption,
18and average increase in electricity consumption associated
19with each electrification measure; the portion of
20installations of each electrification measure that were in
21low-income single-family housing, low-income multifamily
22housing, non-low-income single-family housing, non-low-income
23multifamily housing, commercial buildings, and industrial
24facilities; and the quantity of savings associated with each
25measure category in each customer category that are being
26counted toward the utility's applicable annual total savings

 

 

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1requirement.
2    (c) Electric utilities shall be responsible for overseeing
3the design, development, and filing of energy efficiency plans
4with the Commission and may, as part of that implementation,
5outsource various aspects of program development and
6implementation. A minimum of 10%, for electric utilities that
7serve more than 3,000,000 retail customers in the State, and a
8minimum of 7%, for electric utilities that serve less than
93,000,000 retail customers but more than 500,000 retail
10customers in the State, of the utility's entire portfolio
11funding level for a given year shall be used to procure
12cost-effective energy efficiency measures from units of local
13government, municipal corporations, school districts, public
14housing, and community college districts, and buildings owned
15by nonprofit organizations, provided that a minimum percentage
16of available funds shall be used to procure energy efficiency
17from public housing, which percentage shall be equal to public
18housing's share of public building energy consumption.
19    The utilities shall also implement energy efficiency
20measures targeted at low-income households, which, for
21purposes of this Section, shall be defined as households at or
22below 80% of area median income, and expenditures to implement
23the measures shall be no less than $40,000,000 $25,000,000 per
24year for electric utilities that serve more than 3,000,000
25retail customers in the State and no less than $13,000,000
26$8,350,000 per year for electric utilities that serve less

 

 

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1than 3,000,000 retail customers but more than 500,000 retail
2customers in the State. The ratio of spending on efficiency
3programs targeted at low-income multifamily buildings to
4spending on efficiency programs targeted at low-income
5single-family buildings shall be designed to achieve levels of
6savings from each building type that are approximately
7proportional to the magnitude of cost-effective lifetime
8savings potential in each building type.
9    The utilities shall work to bundle low-income energy
10efficiency offerings with other programs that serve low-income
11households to maximize the benefits going to these households.
12The utilities shall market and implement low-income energy
13efficiency programs in coordination with low-income assistance
14programs, Solar for All, and weatherization whenever
15practicable. The program implementer shall walk the customer
16through the enrollment process for any programs for which the
17customer is eligible. The utilities shall also pilot targeting
18customers with high arrearages, high energy intensity (ratio
19of energy usage divided by home or unit square footage), or
20energy assistance programs with energy efficiency offerings,
21and then track reduction in arrearages as a result of the
22targeting. This targeting and bundling of low-income energy
23programs shall be offered to both low-income single-family and
24multifamily customers (owners and residents).
25    The utilities shall also implement a health and safety
26fund of a minimum of 0.5% of the total portfolio budget, for

 

 

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1electric utilities that serve more than 3,000,000 retail
2customers in the State, and a minimum of 0.5% of the total
3portfolio budget, for electric utilities that serve less than
43,000,000 retail customers but more than 500,000 retail
5customers in the State, of the utility's entire portfolio
6funding level for a given year, that shall be used for the
7purpose of making grants for technical assistance,
8construction, reconstruction, improvement, or repair of
9buildings to facilitate their participation in the energy
10efficiency programs targeted at low-income single-family and
11multifamily households. These funds may also be used for the
12purpose of making grants for technical assistance,
13construction, reconstruction, improvement, or repair of the
14following buildings to facilitate their participation in the
15energy efficiency programs created by this Section: (1)
16buildings that are owned or operated by registered 501(c)(3)
17public charities; and (2) day care centers, day care homes, or
18group day care homes, as defined under 89 Ill. Adm. Code Part
19406, 407, or 408, respectively. Utilities shall also ensure
20that thermal insulating materials used for energy efficiency
21programs targeted at low-income single-family and multifamily
22households do not contain any substance that is a Category 1
23respiratory sensitizer as defined by Appendix A to 29 CFR
241910.1200 (Health Hazard Criteria: A.4 Respiratory or Skin
25Sensitization) that was intentionally added or is present at
26greater than 0.1% (1000 ppm) by weight in the product.

 

 

HB0804 Engrossed- 528 -LRB102 10881 SPS 16211 b

1    Each electric utility shall assess opportunities to
2implement cost-effective energy efficiency measures and
3programs through a public housing authority or authorities
4located in its service territory. If such opportunities are
5identified, the utility shall propose such measures and
6programs to address the opportunities. Expenditures to address
7such opportunities shall be credited toward the minimum
8procurement and expenditure requirements set forth in this
9subsection (c).
10    Implementation of energy efficiency measures and programs
11targeted at low-income households should be contracted, when
12it is practicable, to independent third parties that have
13demonstrated capabilities to serve such households, with a
14preference for not-for-profit entities and government agencies
15that have existing relationships with or experience serving
16low-income communities in the State.
17    Each electric utility shall develop and implement
18reporting procedures that address and assist in determining
19the amount of energy savings that can be applied to the
20low-income procurement and expenditure requirements set forth
21in this subsection (c). Each electric utility shall also track
22the types and quantities or volumes of insulation and air
23sealing materials, and their associated energy saving
24benefits, installed in energy efficiency programs targeted at
25low-income single-family and multifamily households.
26    The electric utilities shall participate in also convene a

 

 

HB0804 Engrossed- 529 -LRB102 10881 SPS 16211 b

1low-income energy efficiency accountability advisory committee
2("the committee"), which will directly inform to assist in the
3design, implementation, and evaluation of the low-income and
4public-housing energy efficiency programs. The committee shall
5be comprised of the electric utilities subject to the
6requirements of this Section, the gas utilities subject to the
7requirements of Section 8-104.1 8-104 of this Act, the
8utilities' low-income energy efficiency implementation
9contractors, nonprofit organizations, community action
10agencies, advocacy groups, State and local governmental
11agencies, public-housing organizations, and representatives of
12community-based organizations, especially those living in or
13working with environmental justice communities and BIPOC
14communities. The committee shall be composed of 2
15geographically differentiated subcommittees: one for
16stakeholders in northern Illinois and one for stakeholders in
17central and southern Illinois. The subcommittees shall meet
18together at least twice per year.
19    There shall be one statewide leadership committee led by
20and composed of community-based organizations that are
21representative of BIPOC and environmental justice communities
22and that includes equitable representation from BIPOC
23communities. The leadership committee shall be composed of an
24equal number of representatives from the 2 subcommittees. The
25subcommittees shall address specific programs and issues, with
26the leadership committee convening targeted workgroups as

 

 

HB0804 Engrossed- 530 -LRB102 10881 SPS 16211 b

1needed. The leadership committee may elect to work with an
2independent facilitator to solicit and organize feedback,
3recommendations and meeting participation from a wide variety
4of community-based stakeholders. If a facilitator is used,
5they shall be fair and responsive to the needs of all
6stakeholders involved in the committee.
7     All committee meetings must be accessible, with rotating
8locations if meetings are held in-person, virtual
9participation options, and materials and agendas circulated
10well in advance.
11    There shall also be opportunities for direct input by
12committee members outside of committee meetings, such as via
13individual meetings, surveys, emails and calls, to ensure
14robust participation by stakeholders with limited capacity and
15ability to attend committee meetings. Committee meetings shall
16emphasize opportunities to bundle and coordinate delivery of
17low-income energy efficiency with other programs that serve
18low-income communities, such as Solar for All and bill payment
19assistance programs. Meetings shall include educational
20opportunities for stakeholders to learn more about these
21additional offerings, and the committee shall assist in
22figuring out the best methods for coordinated delivery and
23implementation of offerings when serving low-income
24communities. The committee shall directly and equitably
25influence and inform utility low-income and public-housing
26energy efficiency programs and priorities. Participating

 

 

HB0804 Engrossed- 531 -LRB102 10881 SPS 16211 b

1utilities shall implement recommendations from the committee
2whenever possible.
3    Participating utilities shall track and report how input
4from the committee has led to new approaches and changes in
5their energy efficiency portfolios. This reporting shall occur
6at committee meetings and in quarterly energy efficiency
7reports to the Stakeholder Advisory Group and Illinois
8Commerce Commission, and other relevant reporting mechanisms.
9Participating utilities shall also report on relevant equity
10data and metrics requested by the committee, such as energy
11burden data, geographic, racial, and other relevant
12demographic data on where programs are being delivered and
13what populations programs are serving.
14    The Illinois Commerce Commission shall oversee and have
15relevant staff participate in the committee. The committee
16shall have a budget of 0.25% of each utility's entire
17efficiency portfolio funding for a given year. The budget
18shall be overseen by the Commission. The budget shall be used
19to provide grants for community-based organizations serving on
20the leadership committee, stipends for community-based
21organizations participating in the committee, grants for
22community-based organizations to do energy efficiency outreach
23and education, and relevant meeting needs as determined by the
24leadership committee. The education and outreach shall
25include, but is not limited to, basic energy efficiency
26education, information about low-income energy efficiency

 

 

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1programs, and information on the committee's purpose,
2structure, and activities.
3    (d) Notwithstanding any other provision of law to the
4contrary, a utility providing approved energy efficiency
5measures and, if applicable, demand-response measures in the
6State shall be permitted to recover all reasonable and
7prudently incurred costs of those measures from all retail
8customers, except as provided in subsection (l) of this
9Section, 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.

 

 

HB0804 Engrossed- 533 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 534 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 535 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 536 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 537 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 538 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 539 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 540 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 541 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 542 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 543 -LRB102 10881 SPS 16211 b

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
25Public Act 99-906), a utility subject to the requirements of
26this Section may elect to defer, as a regulatory asset, up to

 

 

HB0804 Engrossed- 544 -LRB102 10881 SPS 16211 b

1the full amount of its expenditures incurred under this
2Section for each annual period, including, but not limited to,
3any expenditures incurred above the funding level set by
4subsection (f) of this Section for a given year. The total
5expenditures deferred as a regulatory asset in a given year
6shall be amortized and recovered over a period that is equal to
7the weighted average of the energy efficiency measure lives
8implemented for that year that are reflected in the regulatory
9asset. The unamortized balance shall be recognized as of
10December 31 for a given year. The utility shall also earn a
11return on the total of the unamortized balances of all of the
12energy efficiency regulatory assets, less any deferred taxes
13related to those unamortized balances, at an annual rate equal
14to the utility's weighted average cost of capital that
15includes, based on a year-end capital structure, the utility's
16actual cost of debt for the applicable calendar year and a cost
17of equity, which shall be calculated as the sum of the (i) the
18average for the applicable calendar year of the monthly
19average yields of 30-year U.S. Treasury bonds published by the
20Board of Governors of the Federal Reserve System in its weekly
21H.15 Statistical Release or successor publication; and (ii)
22580 basis points, including a revenue conversion factor
23calculated to recover or refund all additional income taxes
24that may be payable or receivable as a result of that return.
25Capital investment costs shall be depreciated and recovered
26over their useful lives consistent with generally accepted

 

 

HB0804 Engrossed- 545 -LRB102 10881 SPS 16211 b

1accounting principles. The weighted average cost of capital
2shall be applied to the capital investment cost balance, less
3any accumulated depreciation and accumulated deferred income
4taxes, as of December 31 for a given year.
5    When an electric utility creates a regulatory asset under
6the provisions of this Section, the costs are recovered over a
7period during which customers also receive a benefit which is
8in the public interest. Accordingly, it is the intent of the
9General Assembly that an electric utility that elects to
10create a regulatory asset under the provisions of this Section
11shall recover all of the associated costs as set forth in this
12Section. After the Commission has approved the prudence and
13reasonableness of the costs that comprise the regulatory
14asset, the electric utility shall be permitted to recover all
15such costs, and the value and recoverability through rates of
16the associated regulatory asset shall not be limited, altered,
17impaired, or reduced.
18    (f) Beginning in 2017, each electric utility shall file an
19energy efficiency plan with the Commission to meet the energy
20efficiency standards for the next applicable multi-year period
21beginning January 1 of the year following the filing,
22according to the schedule set forth in paragraphs (1) through
23(3) of this subsection (f). If a utility does not file such a
24plan on or before the applicable filing deadline for the plan,
25it shall face a penalty of $100,000 per day until the plan is
26filed.

 

 

HB0804 Engrossed- 546 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 547 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 549 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 550 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 551 -LRB102 10881 SPS 16211 b

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
19proposals to meet the energy efficiency standards identified
20in subsection (b-5) or (b-15), as applicable and as such
21standards may have been modified under this subsection (f),
22taking into account the unique circumstances of the utility's
23service territory and results of an energy efficiency
24potential study as described in subsection (f-5) of this
25Section. For those plans commencing on January 1, 2018, the
26Commission shall seek public comment on the utility's plan and

 

 

HB0804 Engrossed- 552 -LRB102 10881 SPS 16211 b

1shall issue an order approving or disapproving each plan no
2later than 105 days after June 1, 2017 (the effective date of
3Public Act 99-906). For those plans commencing after December
431, 2021, the Commission shall seek public comment on the
5utility's plan and shall issue an order approving or
6disapproving each plan within 6 months after its submission.
7If the Commission disapproves a plan, the Commission shall,
8within 30 days, describe in detail the reasons for the
9disapproval and describe a path by which the utility may file a
10revised draft of the plan to address the Commission's concerns
11satisfactorily. If the utility does not refile with the
12Commission within 60 days, the utility shall be subject to
13penalties at a rate of $100,000 per day until the plan is
14filed. This process shall continue, and penalties shall
15accrue, until the utility has successfully filed a portfolio
16of energy efficiency and demand-response measures. Penalties
17shall be deposited into the Energy Efficiency Trust Fund.
18    (f-5) Energy efficiency potential study. An energy
19efficiency potential study shall be commissioned and overseen
20by the Illinois Commerce Commission. The potential study shall
21be a dual fuel study, addressing both gas and electric
22efficiency potential, such that the requirements both in this
23subsection (f-5) and in subsection (j-5) of Section 8-104.1
24are met in an integrated and cost-efficient manner. The
25potential study shall be reviewed as part of the approval of a
26utility's plan filed pursuant to subsection (f) of this

 

 

HB0804 Engrossed- 553 -LRB102 10881 SPS 16211 b

1Section. The potential study shall be designed and conducted
2with input from a Potential Study Stakeholder Committee
3established by the Commission. This Committee shall be
4composed of representatives from each electric utility, the
5Illinois Attorney General's office, at least 2 environmental
6stakeholders, at least one community-based organization, and
7additional parties representing consumers. The Committee shall
8provide input, at a minimum, into the scope of work for the
9studies, the selection of vendors to perform the studies in
10accordance with appropriate confidentiality and conflict of
11interest provisions, and draft work products. The Committee
12shall make best efforts to achieve consensus on the key
13elements 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
25Commission shall make the final decision.
26    (g) In submitting proposed plans and funding levels under

 

 

HB0804 Engrossed- 554 -LRB102 10881 SPS 16211 b

1subsection (f) of this Section to meet the savings goals
2identified in subsection (b-5) or (b-15) of this Section, as
3applicable, 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

 

 

HB0804 Engrossed- 555 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 556 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 557 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 558 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 559 -LRB102 10881 SPS 16211 b

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%

 

 

HB0804 Engrossed- 560 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 561 -LRB102 10881 SPS 16211 b

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%

 

 

HB0804 Engrossed- 562 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 563 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 564 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 565 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 566 -LRB102 10881 SPS 16211 b

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).

 

 

HB0804 Engrossed- 567 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 568 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 569 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 570 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 571 -LRB102 10881 SPS 16211 b

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)

 

 

HB0804 Engrossed- 572 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 573 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 574 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 575 -LRB102 10881 SPS 16211 b

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
21demand-response program revenue may be allocated for research,
22development, or pilot deployment of new equipment or measures.
23    (i) When practicable, electric utilities shall incorporate
24advanced metering infrastructure data into the planning,
25implementation, and evaluation of energy efficiency measures
26and programs, subject to the data privacy and confidentiality

 

 

HB0804 Engrossed- 576 -LRB102 10881 SPS 16211 b

1protections of applicable law.
2    (j) The independent evaluator shall follow the guidelines
3and use the savings set forth in Commission-approved energy
4efficiency policy manuals and technical reference manuals, as
5each may be updated from time to time. Until such time as
6measure life values for energy efficiency measures implemented
7for low-income households under subsection (c) of this Section
8are incorporated into such Commission-approved manuals, the
9low-income measures shall have the same measure life values
10that are established for same measures implemented in
11households that are not low-income households.
12    (k) Notwithstanding any provision of law to the contrary,
13an electric utility subject to the requirements of this
14Section may file a tariff cancelling an automatic adjustment
15clause tariff in effect under this Section or Section 8-103,
16which shall take effect no later than one business day after
17the date such tariff is filed. Thereafter, the utility shall
18be authorized to defer and recover its expenditures incurred
19under this Section through a new tariff authorized under
20subsection (d) of this Section or in the utility's next rate
21case under Article IX or Section 16-108.5 of this Act, with
22interest at an annual rate equal to the utility's weighted
23average cost of capital as approved by the Commission in such
24case. If the utility elects to file a new tariff under
25subsection (d) of this Section, the utility may file the
26tariff within 10 days after June 1, 2017 (the effective date of

 

 

HB0804 Engrossed- 577 -LRB102 10881 SPS 16211 b

1Public Act 99-906), and the cost inputs to such tariff shall be
2based on the projected costs to be incurred by the utility
3during the calendar year in which the new tariff is filed and
4that were not recovered under the tariff that was cancelled as
5provided for in this subsection. Such costs shall include
6those incurred or to be incurred by the utility under its
7multi-year plan approved under subsections (f) and (g) of this
8Section, including, but not limited to, projected capital
9investment costs and projected regulatory asset balances with
10correspondingly updated depreciation and amortization reserves
11and expense. The Commission shall, after notice and hearing,
12approve, or approve with modification, such tariff and cost
13inputs no later than 75 days after the utility filed the
14tariff, provided that such approval, or approval with
15modification, shall be consistent with the provisions of this
16Section to the extent they do not conflict with this
17subsection (k). The tariff approved by the Commission shall
18take effect no later than 5 days after the Commission enters
19its order approving the tariff.
20    No later than 60 days after the effective date of the
21tariff cancelling the utility's automatic adjustment clause
22tariff, the utility shall file a reconciliation that
23reconciles the moneys collected under its automatic adjustment
24clause tariff with the costs incurred during the period
25beginning June 1, 2016 and ending on the date that the electric
26utility's automatic adjustment clause tariff was cancelled. In

 

 

HB0804 Engrossed- 578 -LRB102 10881 SPS 16211 b

1the event the reconciliation reflects an under-collection, the
2utility shall recover the costs as specified in this
3subsection (k). If the reconciliation reflects an
4over-collection, the utility shall apply the amount of such
5over-collection as a one-time credit to retail customers'
6bills.
7    (l) (Blank). For the calendar years covered by a
8multi-year plan commencing after December 31, 2017,
9subsections (a) through (j) of this Section do not apply to any
10retail customers of an electric utility that serves more than
113,000,000 retail customers in the State and whose total
12highest 30 minute demand was more than 10,000 kilowatts, or
13any retail customers of an electric utility that serves less
14than 3,000,000 retail customers but more than 500,000 retail
15customers in the State and whose total highest 15 minute
16demand was more than 10,000 kilowatts. For purposes of this
17subsection (l), "retail customer" has the meaning set forth in
18Section 16-102 of this Act. A determination of whether this
19subsection is applicable to a customer shall be made for each
20multi-year plan beginning after December 31, 2017. The
21criteria for determining whether this subsection (l) is
22applicable to a retail customer shall be based on the 12
23consecutive billing periods prior to the start of the first
24year of each such multi-year plan.
25    (m) Notwithstanding the requirements of this Section, as
26part of a proceeding to approve a multi-year plan under

 

 

HB0804 Engrossed- 579 -LRB102 10881 SPS 16211 b

1subsections (f) and (g) of this Section if the multi-year plan
2has been designed to maximize savings, but does not meet the
3cost cap limitations of this subsection, the Commission shall
4reduce the amount of energy efficiency measures implemented
5for any single year, and whose costs are recovered under
6subsection (d) of this Section, by an amount necessary to
7limit the estimated average net increase due to the cost of the
8measures 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,
20of the average amount paid per kilowatthour by residential
21eligible retail customers during calendar year 2015. An
22electric utility may plan to spend up to 10% more in any year
23during an applicable multi-year plan period to
24cost-effectively achieve additional savings so long as the
25average over the applicable multi-year plan period does not
26exceed the percentages defined in items (1) through (5). To

 

 

HB0804 Engrossed- 580 -LRB102 10881 SPS 16211 b

1determine the total amount that may be spent by an electric
2utility in any single year, the applicable percentage of the
3average amount paid per kilowatthour shall be multiplied by
4the total amount of energy delivered by such electric utility
5in the calendar year 2015, adjusted to reflect the proportion
6of the utility's load attributable to customers who are exempt
7from subsections (a) through (j) of this Section under
8subsection (l) of this Section. For purposes of this
9subsection (m), the amount paid per kilowatthour includes,
10without limitation, estimated amounts paid for supply,
11transmission, distribution, surcharges, and add-on taxes. For
12purposes of this Section, "eligible retail customers" shall
13have the meaning set forth in Section 16-111.5 of this Act.
14Once the Commission has approved a plan under subsections (f)
15and (g) of this Section, no subsequent rate impact
16determinations 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
21required to use cost-effective energy efficiency to reduce
22delivery load. Requiring investment in cost-effective energy
23efficiency will reduce direct and indirect costs to consumers
24by decreasing environmental impacts and by reducing the amount
25of natural gas that needs to be purchased and avoiding or

 

 

HB0804 Engrossed- 581 -LRB102 10881 SPS 16211 b

1delaying the need for new transmission, distribution, storage
2and other related infrastructure. It serves the public
3interest to allow gas utilities to recover costs for
4reasonably and prudently incurred expenditures for energy
5efficiency measures.
6    (b) In this Section:
7    "Cost-effective" means that the measures satisfy the total
8resource cost test that, for purposes of this Section, means a
9standard that is met if, for an investment in energy
10efficiency, the benefit-cost ratio is greater than one. The
11benefit-cost ratio is the ratio of the net present value of the
12total benefits of the measures to the net present value of the
13total costs as calculated over the lifetime of the measures.
14The total resource cost test compares the sum of avoided
15natural gas utility costs, representing the benefits that
16accrue to the natural gas system and the participant in the
17delivery of those efficiency measures and including avoided
18costs associated with the use of electricity or other fuels,
19avoided cost associated with reduced water consumption, and
20avoided costs associated with reduced operation and
21maintenance costs, as well as other quantifiable societal
22benefits, to the sum of all incremental costs of end-use
23measures (including both utility and participant
24contributions), plus costs to administer, deliver, and
25evaluate each demand-side measure, to quantify the net savings
26obtained by substituting demand-side measures for supply

 

 

HB0804 Engrossed- 582 -LRB102 10881 SPS 16211 b

1resources. In calculating avoided costs, reasonable estimates
2shall be included for financial costs likely to be imposed by
3future regulation of emissions of greenhouse gases. In
4discounting future societal costs and benefits for the purpose
5of calculating net present values, a societal discount rate
6based on actual, long-term Treasury bond yields shall be used.
7The low-income measures described in subsection (f) of this
8Section shall not be required to meet the total resource cost
9test.
10    "Cumulative persisting annual savings" means the total gas
11energy savings in a given year from measures installed in that
12year or in previous years, but no earlier than January 1, 2022,
13that are still operational and providing savings in that year
14because the measures have not yet reached the end of their
15useful lives.
16    "Energy efficiency" means measures that reduce the amount
17of energy required to achieve a given end use. "Energy
18efficiency" also includes measures that reduce the total Btus
19of electricity and natural gas needed to meet the end use or
20uses. "Black, indigenous, and people of color" and "BIPOC"
21means people who are members of the groups described in
22subparagraphs (a) through (e) of paragraph (A) of subsection
23(1) of Section 2 of the Business Enterprise for Minorities,
24Women, and Persons with Disabilities Act. "Expanding Clean
25Energy Entrepreneurship and Contractor Incubator Network
26Program," "Clean Energy Black, Indigenous, and People of Color

 

 

HB0804 Engrossed- 583 -LRB102 10881 SPS 16211 b

1Primes Contractor Accelerator," "Returning Resident Clean
2Energy Training Program," and "Clean Energy Workforce Training
3Hubs Program" are as set forth in the Clean Jobs, Workforce and
4Contractor Equity Act.
5    (c) This Section applies to all gas distribution utilities
6in the State for those multi-year plans that include energy
7efficiency programs commencing after December 31, 2022.
8    (d) Beginning in 2023, gas utilities subject to this
9Section shall achieve the following cumulative persisting
10annual savings goals, as compared to a deemed baseline
11equivalent to the utility's average annual therm throughput in
122016 through 2020 through the implementation of energy
13efficiency measures during the applicable year and in prior
14years, 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;

 

 

HB0804 Engrossed- 584 -LRB102 10881 SPS 16211 b

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
20Commission shall establish additional cumulative persisting
21annual savings goals for the years 2037 through 2041. The
22Commission shall also establish additional cumulative
23persisting annual savings goals every 5 years thereafter to
24ensure utilities always have goals that extend at least 11
25years into the future. The cumulative persisting annual
26savings goals beyond the year 2035 shall increase by 0.6

 

 

HB0804 Engrossed- 585 -LRB102 10881 SPS 16211 b

1percentage points per year absent a Commission decision to
2initiate a proceeding to consider establishing goals that
3increase by more or less than that amount. Such a proceeding
4must be conducted in accordance with the procedures described
5in subsection (f) of this Section. If such a proceeding is
6initiated, the cumulative persisting annual savings goals
7established by the Commission through that proceeding shall
8reflect the Commission's best estimate of the maximum amount
9of additional gas savings that are forecast to be
10cost-effectively achievable unless such best estimates would
11result in goals that represent less than 0.4 percentage point
12annual increases in total cumulative persisting annual
13savings. The Commission may only establish goals that
14represent less than 0.4 percentage point annual increases in
15cumulative persisting annual savings if it can demonstrate,
16based on clear and convincing evidence, that 0.4 percentage
17point increases are not cost-effectively achievable. The
18Commission shall inform its decision based on an energy
19efficiency potential study that conforms to the requirements
20of subsection (j-5) of this Section.
21    (e) If a gas utility jointly offers an energy efficiency
22measure or program with an electric utility under plans
23approved under this Section and Section 8-103B of this Act,
24the gas utility may continue offering the program, including
25the electric energy efficiency measures, if the electric
26utility discontinues funding the program. In that event, the

 

 

HB0804 Engrossed- 586 -LRB102 10881 SPS 16211 b

1energy-savings value associated with such other fuels shall be
2converted to gas energy savings on an equivalent Btu basis for
3the premises. However, the gas utility shall prioritize
4programs for low-income residential customers to the extent
5practicable. A gas utility may recover the costs of offering
6the gas energy efficiency measures under this subsection (e).
7    For those energy efficiency measures or programs that save
8both gas and other fuels but are not jointly offered with an
9electric utility under plans approved under this Section and
10Section 8-103B, the gas utility may count savings of fuels
11other than gas toward the achievement of its annual savings
12goal, and the energy-savings value associated with such other
13fuels shall be converted to gas energy savings on an
14equivalent Btu basis at the premises.
15    In no event shall more than 10% of each year's applicable
16annual total savings requirement as defined in paragraph (8)
17of subsection (j) of this Section be met through savings of
18fuels other than gas.
19    (f) Gas utilities are responsible for overseeing the
20design, development, and filing of energy efficiency plans
21with the Commission and may, as part of that implementation,
22outsource various aspects of program development and
23implementation. A minimum of 10% of the utility's entire
24portfolio funding level for a given year shall be used to
25procure cost-effective energy efficiency measures from units
26of local government, municipal corporations, school districts,

 

 

HB0804 Engrossed- 587 -LRB102 10881 SPS 16211 b

1public housing, community college districts, and
2nonprofit-owned buildings provided that a minimum percentage
3of available funds shall be used to procure energy efficiency
4from public housing, which percentage shall be equal to public
5housing's share of public building energy consumption.
6    The utilities shall also implement energy efficiency
7measures targeted at low-income single-family and multifamily
8households, which, as used in this Section, means households
9at or below 80% of area median income, and expenditures to
10implement the measures shall be no less than 25% of the
11utility's total efficiency portfolio budget.
12    At least 70% of spending on programs targeted at
13low-income households shall go toward integrated whole
14building efficiency programs, as defined in subsection (g), or
15individual measures that reduce space heating needs through
16improvements to the building envelope, heating distribution
17systems, or heating system controls. In implementing these
18programs, utilities shall ensure that thermal insulating
19materials used in the building envelope do not contain any
20substance that is a Category 1 respiratory sensitizer as
21defined by Appendix A to 29 CFR 1910.1200 (Health Hazard
22Criteria: A.4 Respiratory or Skin Sensitization) that was
23intentionally added or is present at greater than 0.1% (1000
24ppm) by weight in the product. Programs targeted at low-income
25households, which address single-family and multifamily
26buildings shall be treated such that forecast savings to be

 

 

HB0804 Engrossed- 588 -LRB102 10881 SPS 16211 b

1achieved in each building type are approximately in
2proportional to the magnitude of cost-effective energy
3efficiency opportunities in these respective building types.
4    Each gas utility shall assess opportunities to implement
5cost-effective energy efficiency measures and programs through
6a public-housing authority or authorities located in its
7service territory. If such opportunities are identified, the
8utility shall propose such measures and programs to address
9the opportunities. Expenditures to address such opportunities
10shall be credited toward the minimum procurement and
11expenditure requirements set forth in this subsection (f).
12    Implementation of energy efficiency measures and programs
13targeted at low-income households shall be contracted, when it
14is practical, to independent third parties that have
15demonstrated capabilities to serve such households, with a
16preference for not-for-profit entities and government agencies
17that have existing relationships with or experience serving
18low-income communities in the State.
19    Each gas utility shall develop and implement reporting
20procedures that address and assist in determining the amount
21of energy savings that can be applied to the low-income
22procurement and expenditure requirements set forth in this
23subsection (f). Each gas utility shall also track the types
24and quantities or volumes of insulation and air sealing
25materials, and their associated energy saving benefits,
26installed in energy efficiency programs targeted at low-income

 

 

HB0804 Engrossed- 589 -LRB102 10881 SPS 16211 b

1single-family and multifamily households.
2    Each gas utility shall implement a health and safety fund
3of a minimum of 0.5% of the utility's entire portfolio funding
4level for a given year, that shall be used for the purpose of
5making grants for technical assistance, construction,
6reconstruction, improvement, or repair of buildings to
7facilitate their participation in the energy efficiency
8programs targeted at low-income single-family and multifamily
9households. These funds may also be used for the purpose of
10making grants for technical assistance, construction,
11reconstruction, improvement, or repair of the following
12buildings to facilitate their participation in the energy
13efficiency programs created by this Section: (1) buildings
14that are owned or operated by registered 501(c)(3) public
15charities; and (2) day care centers, day care homes, or group
16day care homes, as defined by 89 Ill. Adm. Code Part 406, 407,
17or 408, respectively.
18    The gas utilities shall participate in a low-income energy
19efficiency accountability committee ("the committee"), which
20will directly inform the design, implementation, and
21evaluation of the low-income and public-housing energy
22efficiency programs. The committee shall be composed of the
23electric utilities subject to the requirements of Section
248-103B of this Act, the gas utilities subject to the
25requirements of this Section, the utilities' low-income energy
26efficiency implementation contractors, nonprofit

 

 

HB0804 Engrossed- 590 -LRB102 10881 SPS 16211 b

1organizations, community action agencies, advocacy groups,
2State and local governmental agencies, public-housing
3organizations, and representatives of community-based
4organizations, especially those living in or working with
5environmental justice communities and BIPOC communities. The
6committee shall be composed of a statewide leadership
7committee and 2 geographically differentiated subcommittees:
8one for stakeholders in northern Illinois and one for
9stakeholders in central and southern Illinois. The
10subcommittees shall meet together at least twice per year.
11    There shall be a statewide leadership committee led by and
12composed of community-based organizations that are
13representative of BIPOC and environmental justice communities
14and that includes equitable representation from BIPOC
15communities. The leadership committee shall be composed of an
16equal number of representatives from the 2 subcommittees.
17    The subcommittees shall address specific programs and
18issues, with the leadership committee convening targeted
19workgroups as needed. The leadership committee may elect to
20work with an independent facilitator to solicit and organize
21feedback, recommendations and meeting participation from a
22wide variety of community-based stakeholders. If a facilitator
23is used, they shall be fair and responsive to the needs of all
24stakeholders involved in the committee.
25    All committee meetings must be accessible, with rotating
26locations if meetings are held in-person, virtual

 

 

HB0804 Engrossed- 591 -LRB102 10881 SPS 16211 b

1participation options, and materials and agendas circulated
2well in advance.
3    There shall also be opportunities for direct input by
4committee members outside of committee meetings, such as via
5individual meetings, surveys, emails and calls, to ensure
6robust participation by stakeholders with limited capacity and
7ability to attend committee meetings. Committee meetings shall
8emphasize opportunities to bundle and coordinate delivery of
9low-income energy efficiency with other programs that serve
10low-income communities, such as Solar for All and bill payment
11assistance programs. Meetings shall include educational
12opportunities for stakeholders to learn more about these
13additional offerings, and the committee shall assist in
14figuring out the best methods for coordinated delivery and
15implementation of offerings when serving low-income
16communities. The committee shall directly and equitably
17influence and inform utility low-income and public-housing
18energy efficiency programs and priorities.
19    Participating utilities shall implement recommendations
20from the committee whenever possible. Participating utilities
21shall track and report how input from the committee has led to
22new approaches and changes in their energy efficiency
23portfolios. This reporting shall occur at committee meetings
24and in quarterly energy efficiency reports to the Stakeholder
25Advisory Group and Illinois Commerce Commission, and other
26relevant reporting mechanisms. Participating utilities shall

 

 

HB0804 Engrossed- 592 -LRB102 10881 SPS 16211 b

1also report on relevant equity data and metrics requested by
2the committee, such as energy burden data, geographic, racial,
3and other relevant demographic data on where programs are
4being delivered and what populations programs are serving.
5    The Illinois Commerce Commission shall oversee and have
6relevant staff participate in the committee. The committee
7shall have a budget of 0.25% of each utility's entire
8efficiency portfolio funding for a given year. The budget
9shall be overseen by the Commission. The budget shall be used
10to provide grants for community-based organizations serving on
11the leadership committee, stipends for community-based
12organizations participating in the committee, grants for
13community-based organizations to do energy efficiency outreach
14and education, and relevant meeting needs as determined by the
15leadership committee. The education and outreach shall
16include, but is not limited to, basic energy efficiency
17education, information about low-income energy efficiency
18programs, and information on the committee's purpose,
19structure, and activities.
20    (g) At least 50% of the entire efficiency program
21portfolio budget shall be spent on any combination of (1)
22heating energy savings from integrated, residential or
23nonresidential, new or existing whole building efficiency
24programs; and (2) individual heating measures in residential
25or nonresidential buildings, new or existing, that reduce the
26amount of space heating needs through improvements to the

 

 

HB0804 Engrossed- 593 -LRB102 10881 SPS 16211 b

1efficiency of building envelopes (including, but not limited
2to, insulation measures, efficient windows and air leakage
3reduction), improvements to systems for distributing heat
4(including, but not limited to, duct leakage reduction, duct
5insulation or pipe insulation) in buildings, improvements to
6ventilation systems (including, but not limited to heat
7recovery ventilation and demand control ventilation measures)
8or improvements to controls of heating equipment (including,
9but not limited to, advanced thermostats). Spending on
10efficient furnaces, efficient boilers, or other efficient
11heating equipment measures outside of or separate from
12integrated whole building efficiency programs is permitted
13within the efficiency program portfolio, but does not count
14toward the minimum spending requirement in this subsection
15(g). Spending on integrated whole building efficiency programs
16targeted to low-income customers, as well as spending on
17individual building envelope, heating distribution system,
18ventilation system and heating system control measures
19installed in low-income homes does count toward this
20requirement. The portion of portfolio spending on program
21marketing, training of installers, audits of buildings,
22inspections of work performed, and other administrative and
23technical expenses that are clearly tied to promotion and
24delivery of integrated whole building efficiency programs or
25installation of individual building envelope, heating
26distribution system, ventilation system or heating system

 

 

HB0804 Engrossed- 594 -LRB102 10881 SPS 16211 b

1control measures shall count toward this requirement. If this
2minimum requirement is not met, any performance incentive
3earned under paragraph (7) of subsection (j) should be reduced
4by the percentage point level of shortfall in meeting this
5requirement; if the utility is subject to a performance
6penalty, then the magnitude of the penalty shall be increased
7by the percentage point shortfall in meeting this requirement.
8    As used in this subsection (g), "integrated whole building
9efficiency programs" means programs designed to optimize the
10heating efficiency of buildings by comprehensively and
11simultaneously addressing cost-effective energy-savings
12opportunities associated with heating equipment, heating
13distribution systems, heating system controls, ventilation
14systems and building envelopes; such programs may be targeted
15to existing buildings or to construction of new buildings.
16    (h) Notwithstanding any other provision of law to the
17contrary, a utility providing approved energy efficiency
18measures in the State shall be permitted to recover all
19reasonable and prudently incurred costs of those measures from
20all distribution system customers, provided that nothing in
21this subsection (h) permits the double recovery of such costs
22from customers.
23    (i) Beginning in 2022, each gas utility shall file an
24energy efficiency plan with the Commission to meet the energy
25efficiency standards for the next applicable multi-year period
26beginning January 1 of the year following the filing,

 

 

HB0804 Engrossed- 595 -LRB102 10881 SPS 16211 b

1according to the schedule set forth in paragraphs (1) through
2(5) of this subsection (i). If a utility does not file such a
3plan on or before the applicable filing deadline for the plan,
4it shall face a penalty of $100,000 per day until the plan is
5filed.
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

 

 

HB0804 Engrossed- 596 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 597 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 598 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 599 -LRB102 10881 SPS 16211 b

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
5proposals to meet the energy efficiency standards identified
6in subsection (d). The Commission shall seek public comment on
7the utility's plan and shall issue an order approving or
8disapproving each plan within 6 months after its submission.
9If the Commission disapproves a plan, the Commission shall,
10within 30 days, describe in detail the reasons for the
11disapproval and describe a path by which the utility may file a
12revised draft of the plan to address the Commission's concerns
13satisfactorily. If the utility does not refile with the
14Commission within 60 days, the utility shall be subject to
15penalties at a rate of $100,000 per day until the plan is
16filed. This process shall continue, and penalties shall
17accrue, until the utility has successfully filed a portfolio
18of energy efficiency measures. Penalties shall be deposited
19into the Energy Efficiency Trust Fund.
20    (j) In submitting proposed plans and funding levels under
21subsection (i) of this Section to meet the savings goals
22identified 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

 

 

HB0804 Engrossed- 600 -LRB102 10881 SPS 16211 b

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:

 

 

HB0804 Engrossed- 601 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 602 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 603 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 604 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 605 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 606 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 607 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 608 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 609 -LRB102 10881 SPS 16211 b

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
25efficiency potential study shall be commissioned and overseen
26by the Illinois Commerce Commission. The potential study shall

 

 

HB0804 Engrossed- 610 -LRB102 10881 SPS 16211 b

1be a dual fuel study, addressing both gas and electric
2efficiency potential, such that the requirements both in this
3subsection (j-5) and in subsection (f-5) of Section 8-103B are
4met in an integrated and cost-efficient manner. The potential
5study shall be designed and conducted with input from a
6Potential Study Stakeholder Committee established by the
7Commission. This Committee shall be composed of
8representatives from each electric utility, the Illinois
9Attorney General's office, at least 2 environmental
10stakeholders, at least one community-based organization, and
11additional parties representing consumers. The Committee shall
12provide input, at a minimum, into the scope of work for the
13studies, the selection of vendors to perform the studies in
14accordance with appropriate confidentiality and conflict of
15interest provisions, and draft work products. The Committee
16shall make best efforts to achieve consensus on the key
17elements 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

 

 

HB0804 Engrossed- 611 -LRB102 10881 SPS 16211 b

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
6Commission shall make the final decision.
7    (k) No more than 6% of energy efficiency and
8demand-response program revenue may be allocated for research,
9development, or pilot deployment of new equipment or measures.
10    (l) When practical, gas utilities shall incorporate
11advanced metering infrastructure data into the planning,
12implementation, and evaluation of energy efficiency measures
13and programs, subject to the data privacy and confidentiality
14protections of applicable law.
15    (m) The independent evaluator shall follow the guidelines
16and use the savings set forth in Commission-approved energy
17efficiency policy manuals and technical reference manuals, as
18each may be updated from time to time. Until measure life
19values for energy efficiency measures implemented for
20low-income households under subsection (f) of this Section are
21incorporated into such Commission-approved manuals, the
22low-income measures shall have the same measure life values
23that are established for same measures implemented in
24households that are not low-income households.
 
25    (220 ILCS 5/8-512 new)

 

 

HB0804 Engrossed- 612 -LRB102 10881 SPS 16211 b

1    Sec. 8-512. Renewable energy access plan.
2    (a) It is the policy of this State to promote
3cost-effective transmission system development that ensures
4reliability of the electric transmission system, lowers carbon
5emissions, minimizes long-term costs for consumers, and
6supports 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

 

 

HB0804 Engrossed- 613 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 614 -LRB102 10881 SPS 16211 b

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,
19develop, and adopt a renewable energy access plan no later
20than December 31, 2022. To assist and support the Commission
21in the development of the plan, the Commission shall retain
22the services of technical and policy experts with relevant
23fields of expertise, solicit technical and policy analysis
24from the public, and provide for a 120-day open public comment
25period after publication of a draft report, which shall be
26published no later than 90 days after the comment period ends.

 

 

HB0804 Engrossed- 615 -LRB102 10881 SPS 16211 b

1The 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

 

 

HB0804 Engrossed- 616 -LRB102 10881 SPS 16211 b

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
16odd-numbered year thereafter, the Commission shall open an
17investigation to deliberate, develop, and adopt an updated
18renewable energy access plan that, at a minimum, evaluates the
19implementation and effectiveness of the renewable energy
20access plan, recommends improvements to the renewable energy
21access plan, and provides changes to transmission capacity
22necessary to deliver electric output from the renewable energy
23access plan zones.
 
24    (220 ILCS 5/9-220.3)
25    (Section scheduled to be repealed on December 31, 2023)

 

 

HB0804 Engrossed- 617 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 618 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 619 -LRB102 10881 SPS 16211 b

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
5infrastructure plant" includes only plant additions placed in
6service not reflected in the rate base used to establish the
7utility's delivery base rates. "Costs associated with
8investments in qualifying infrastructure plant" shall include
9a return on qualifying infrastructure plant and recovery of
10depreciation and amortization expense on qualifying
11infrastructure plant, net of the depreciation included in the
12utility's base rates on any plant retired in conjunction with
13the installation of the qualifying infrastructure plant.
14Collectively the "qualifying infrastructure plant" and "costs
15associated with investments in qualifying infrastructure
16plant" are referred to as the "qualifying infrastructure
17investment" and that are related to one or more of the
18following:
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"

 

 

HB0804 Engrossed- 620 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 621 -LRB102 10881 SPS 16211 b

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
10identified in paragraph (1) of subsection (b) of this Section,
11the natural gas utility shall determine priorities for such
12installation with consideration of projects either: (i)
13integral to a general government public facilities improvement
14program or (ii) ranked in the highest risk categories in the
15utility's most recent Distribution Integrity Management Plan
16where removal or replacement is the remedial measure.
17    (c) Qualifying infrastructure investment, defined in
18subsection (b) of this Section, recoverable through a tariff
19authorized by subsection (a) of this Section, shall not
20include costs or expenses incurred in the ordinary course of
21business for the ongoing or routine operations of the utility,
22including, 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.

 

 

HB0804 Engrossed- 622 -LRB102 10881 SPS 16211 b

1    (d) Gas utility commitments. A natural gas utility that
2has in effect a natural gas surcharge tariff pursuant to this
3Section 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

 

 

HB0804 Engrossed- 623 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 624 -LRB102 10881 SPS 16211 b

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
17return authorized by the Commission in the utility's last gas
18rate case.
19    (g) The cumulative amount of increases billed under the
20surcharge, since the utility's most recent delivery service
21rate order, shall not exceed an annual average 4% of the
22utility's delivery base rate revenues, but shall not exceed
235.5% in any given year. On the effective date of new delivery
24base rates, the surcharge shall be reduced to zero with
25respect to qualifying infrastructure investment that is
26transferred to the rate base used to establish the utility's

 

 

HB0804 Engrossed- 625 -LRB102 10881 SPS 16211 b

1delivery base rates, provided that the utility may continue to
2charge or refund any reconciliation adjustment determined
3pursuant to subsection (e) of this Section.
4    (h) If a gas utility obtains a surcharge tariff under this
5Section 9-220.3, then it and its affiliates are excused from
6the rate case filing requirements contained in Sections
79-220(h) and 9-220(h-1). In the event a natural gas utility,
8prior to the effective date of this amendatory Act of the 98th
9General Assembly, made a rate case filing that is still
10pending on the effective date of this amendatory Act of the
1198th General Assembly, the natural gas utility may, at the
12time it files its surcharge tariff with the Commission, also
13file a notice with the Commission to withdraw its rate case
14filing. Any affiliate of such natural gas utility may also
15file to withdraw its rate case filing. Upon receipt of such
16notice, the Commission shall dismiss the rate case filing with
17prejudice and such tariffs and the record related thereto
18shall not be the subject of any further hearing,
19investigation, or proceeding of any kind related to rates for
20gas delivery services. Notwithstanding the foregoing, a
21natural gas utility shall not be permitted to withdraw a rate
22case filing for which a proposed order recommending a rate
23reduction is pending. A natural gas utility shall not be
24permitted to withdraw the gas delivery services tariffs that
25are the subject of Commission Docket Nos. 12-0511/12-0512
26(cons.). None of the costs incurred for the withdrawn rate

 

 

HB0804 Engrossed- 626 -LRB102 10881 SPS 16211 b

1case are recoverable from ratepayers.
2    (i) The Commission shall promulgate rules and regulations
3to carry out the provisions of this Section under the
4emergency rulemaking provisions set forth in Section 5-45 of
5the Illinois Administrative Procedure Act, and such emergency
6rules shall be effective no later than 30 days after the
7effective date of this amendatory Act of the 98th General
8Assembly.
9    (j) Utilities that have elected to recover qualifying
10infrastructure investment costs pursuant to this Section shall
11file annually their Distribution Integrity Management Plan
12(DIMP) with the Commission no later than June 1 of each year
13the utility has said tariff in effect. The DIMP shall include
14the 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,
25with reasonable notice, open an investigation to consider
26whether the Plan meets the objectives set forth in this

 

 

HB0804 Engrossed- 627 -LRB102 10881 SPS 16211 b

1subsection and contains the information required by subsection
2(j). The Commission shall issue a final order approving the
3Plan, with any modifications the Commission deems reasonable
4and appropriate to achieve the goals of this Section, within
5270 days after the Plan filing. The investigation shall assess
6whether 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
18information, ensure robust stakeholder participation, and
19recognize the responsibility of the utility to ultimately
20manage 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
25renewable energy enterprise that is located within a Clean

 

 

HB0804 Engrossed- 628 -LRB102 10881 SPS 16211 b

1Energy Empowerment Zone established under the Energy Community
2Reinvestment Act shall be exempt from the additional charges
3added to the renewable energy enterprise's utility bills as a
4pass-on of municipal and State utility taxes under Sections
59-221 and 9-222 of this Act, to the extent such charges are
6exempted by ordinance adopted in accordance with paragraph (e)
7of Section 8-11-2 of the Illinois Municipal Code in the case of
8municipal utility taxes, and to the extent such charges are
9exempted by the percentage specified by the Department of
10Commerce and Economic Opportunity in the case of State utility
11taxes, provided such renewable energy enterprise meets the
12following 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

 

 

HB0804 Engrossed- 629 -LRB102 10881 SPS 16211 b

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
9determine the period during which such exemption from the
10charges imposed under Section 9-222 is in effect which shall
11not exceed 30 years or the term of the Clean Energy Empowerment
12Zone, whichever period is shorter, except that the exemption
13period 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
16the power to adopt rules to carry out the provisions of this
17Section including procedures for complying with the
18requirements specified in clauses (1) and (2) of this Section
19and procedures for applying for the exemptions authorized
20under this Section; to define the amounts and types of
21eligible investments that a renewable energy enterprise must
22make in order to receive State utility tax exemptions pursuant
23to Sections 9-222 and 9-222.1 of this Act; to approve such
24utility tax exemptions for renewable energy enterprise whose
25investments are not yet placed in service; and to require that
26renewable energy enterprise granted tax exemptions repay the

 

 

HB0804 Engrossed- 630 -LRB102 10881 SPS 16211 b

1exempted tax should the renewable energy enterprise fail to
2comply with the terms and conditions of the certification.
3However, no renewable energy enterprise shall be required, as
4a condition for certification under clause (3) of this
5Section, to attest that its decision to invest under clause
6(1) of this Section and to locate under clause (2) of this
7Section is predicated upon the availability of the exemptions
8authorized by this Section.
9    A renewable energy enterprise shall be exempt, in whole or
10in part, from the pass-on charges of municipal utility taxes
11imposed under Section 9-221, only if it meets the criteria
12specified in clauses (1) through (3) of this Section and the
13municipality has adopted an ordinance authorizing the
14exemption under paragraph (e) of Section 8-11-2 of the
15Illinois Municipal Code. Upon certification of the renewable
16energy enterprise by the Department of Commerce and Economic
17Opportunity, the Department of Commerce and Economic
18Opportunity shall notify the Department of Revenue of such
19certification. The Department of Revenue shall notify the
20public utilities of the exemption status of renewable energy
21enterprises from the pass-on charges of State and municipal
22utility taxes. Such exemption status shall be effective within
233 months after certification of the renewable energy
24enterprise.
 
25    (220 ILCS 5/9-227)  (from Ch. 111 2/3, par. 9-227)

 

 

HB0804 Engrossed- 631 -LRB102 10881 SPS 16211 b

1    Sec. 9-227. It is the policy of this State to encourage
2electric and natural gas public utilities to promote the
3welfare of this State and their communities through donations
4made from the utility's shareholder profits rather than by
5using ratepayer funds. Such contributions shall not be
6recoverable through the public utility's rates. It shall be
7proper for the Commission to consider as an operating expense,
8for the purpose of determining whether a rate or other charge
9or classification is sufficient, donations made by a public
10utility for the public welfare or for charitable scientific,
11religious or educational purposes, provided that such
12donations are reasonable in amount. In determining the
13reasonableness of such donations, the Commission may not
14establish, by rule, a presumption that any particular portion
15of an otherwise reasonable amount may not be considered as an
16operating expense. The Commission shall be prohibited from
17disallowing by rule, as an operating expense, any portion of a
18reasonable 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

 

 

HB0804 Engrossed- 632 -LRB102 10881 SPS 16211 b

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
11statewide, or have any significant effects outside the
12territory of the utility or utilities involved in the case,
13the Commission shall hold at least 5 public hearings for the
14purpose of receiving public comment on each such major case.
15One of these hearings must be in the Chicago metropolitan
16area. One of these hearings must be in Springfield. The
17remaining 3 hearings must be outside of the Chicago
18metropolitan area and Springfield. One of the hearings shall
19be held within the county in which the subject matter of the
20hearing is situated, if it is situated within one county. When
21the outcome of a major case would have effects only within the
22territory of one utility, the Commission shall hold at least 5
23public hearings at a variety of geographic locations within
24the utility's territory. The locations shall be chosen to give
25a wide variety of stakeholders the best opportunity to
26participate in the hearings. The Commission may combine public

 

 

HB0804 Engrossed- 633 -LRB102 10881 SPS 16211 b

1hearings for multiple major cases into one event at a single
2venue, where practicable and compliant with all other
3requirements.
4    (c) The public hearings shall be held at times that make
5them accessible to the public, including to residents who work
6during the day. The public hearings shall be held at locations
7easily accessible, whenever possible, by public
8transportation. The public hearings shall be held at locations
9with wheelchair access. Upon request, a sign language
10interpreter or other equivalent assistance for the hearing
11impaired shall be provided. Upon request, translation services
12shall be provided. Translation services may include real-time
13telephone-based or other real-time translation services. All
14written materials distributed at public hearings by the
15Commission or utilities must be available at the hearing in
16Spanish and, upon request and reasonable notice, other
17languages. Call-in options shall be provided.
18    (d) At least 3 commissioners shall attend each public
19hearing in person.
20    (e) Public hearings under this Section are subject to the
21Open Meetings Act.
22    (f) The Commission may collect a reasonable fee from the
23affected utility to offset the cost of public hearings,
24including the cost of staffing. Within 30 days after the
25effective date of this amendatory Act of the 102nd General
26Assembly, the Commission shall set the amount of the fee and

 

 

HB0804 Engrossed- 634 -LRB102 10881 SPS 16211 b

1shall update the amount of the fee no less often than every 3
2years thereafter. All fees charged and collected by the
3Commission shall be paid promptly after the receipt of the
4same, accompanied by a detailed statement thereof, into the
5Public Utility Fund in the State treasury. All hearings before
6the Commission or any commissioner or administrative law judge
7shall be held within the county in which the subject matter of
8the hearing is situated, or if the subject matter of the
9hearing is situated in more than one county, then at a place or
10places designated by the Commission, or agreed upon by the
11parties in interest, within one or more such counties, or at
12the place which in the judgment of the Commission shall be most
13convenient 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
18better aligning regulated utility operations, expenditures and
19investments with public benefit goals including safety;
20reliability; efficiency; affordability; equity; emissions
21reductions; and expansion of clean distributed energy
22resources, is critical to ensuring that Illinois residents and
23businesses do not suffer economic and environmental harm from
24the State's energy systems and to maximize the potential
25benefits from utility expenditures. To that end, it is the

 

 

HB0804 Engrossed- 635 -LRB102 10881 SPS 16211 b

1policy of the State of Illinois to promote inclusive,
2comprehensive, transparent, cost-effective distribution
3system planning that minimizes long-term costs for Illinois
4customers and supports the achievement of state renewable
5energy development and other clean energy, public health, and
6environmental policy goals. Utility distribution system
7expenditures, programs, investments and policies must be
8evaluated in coordination with these goals. In particular, the
9General 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

 

 

HB0804 Engrossed- 636 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 637 -LRB102 10881 SPS 16211 b

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
26implement distribution system planning in order to accelerate

 

 

HB0804 Engrossed- 638 -LRB102 10881 SPS 16211 b

1progress on Illinois clean energy and environmental goals and
2hold electric utilities publicly accountable for their
3performance.
4    (b) Definitions. As used in this Section:
5    "Commission" means the Illinois Commerce Commission.
6    "Demand response" means measures that decrease peak
7electricity demand or shift demand from peak to off-peak
8periods.
9    "Distributed energy resources" or "DER" means a wide range
10of technologies that are located on the customer side of the
11customer's electric meter and can provide value to the
12distribution system, including, but not limited to,
13distributed generation, energy storage, electric vehicles, and
14demand response technologies.
15    "Environmental justice communities" means the definition
16of that term based on existing methodologies and findings,
17used and as may be updated by the Illinois Power Agency and its
18Program Administrator in the Illinois Solar for All Program.
19    (c) Application. This Section applies to electric
20utilities serving more than 500,000 retail customers in the
21State.
22    (d) Objectives. The Multi-Year Integrated Grid Plan ("the
23Plan") 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

 

 

HB0804 Engrossed- 639 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 640 -LRB102 10881 SPS 16211 b

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
19February 1, 2022, the Illinois Commerce Commission shall
20initiate a series of no fewer than 6 workshops which shall
21inform the filing requirements for, and contents of, the
22Multi-Year Integrated Grid Plans to be filed by electric
23utilities subject to this Section. The series of workshops
24shall be 11 months in length, concluding no later than
25December 31, 2022. The workshops shall be facilitated by an
26independent third-party facilitator selected by Staff of the

 

 

HB0804 Engrossed- 641 -LRB102 10881 SPS 16211 b

1Illinois Commerce Commission and approved by the Executive
2Director 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

 

 

HB0804 Engrossed- 642 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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;

 

 

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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
616-107.8 of this Act; (vii) Clean Energy Empowerment Zone
7Pilot 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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,

 

 

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1        with any modifications, of its Multi-Year Integrated
2        Grid Plan.
3    (g) Subsequent Multi-Year Integrated Grid Plans. No later
4than June 1, 2025 and every 4 years thereafter, each electric
5utility subject to this Section shall file a new Multi-Year
6Integrated Grid Plan for the subsequent 4 delivery years after
7the completion of the then-effective Plan. Each Plan shall
8meet the requirements described in subsection (f), and shall
9be preceded by a workshop process which meets the same
10requirements described in subsection (e). If appropriate, the
11Commission may require additional implementation dockets to
12follow 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,
161998, a tariff or tariffs which allow nonresidential retail
17customers in the electric utility's service area to elect
18real-time pricing beginning October 1, 1998.
19    (b) Each electric utility shall file, on or before May 1,
202000, a tariff or tariffs which allow residential retail
21customers in the electric utility's service area to elect
22real-time pricing beginning October 1, 2000.
23    (b-5) Each electric utility shall file a tariff or tariffs
24allowing residential retail customers in the electric
25utility's service area to elect real-time pricing beginning

 

 

HB0804 Engrossed- 662 -LRB102 10881 SPS 16211 b

1January 2, 2007. The Commission may, after notice and hearing,
2approve the tariff or tariffs. A tariff or tariffs approved
3pursuant to this subsection (b-5) shall, at a minimum,
4describe (i) the methodology for determining the market price
5of energy to be reflected in the real-time rate and (ii) the
6manner in which customers who elect real-time pricing will be
7provided with ready access to hourly market prices, including,
8but not limited to, day-ahead hourly energy prices. A customer
9who elects real-time pricing under a tariff approved under
10this subsection (b-5) and thereafter terminates the election
11shall not return to taking service under the tariff for a
12period of 12 months following the date on which the customer
13terminated real-time pricing. However, this limitation shall
14cease to apply on such date that the provision of electric
15power and energy is declared competitive under Section 16-113
16of this Act for the customer group or groups to which this
17subsection (b-5) applies.
18    A proceeding under this subsection (b-5) may not exceed
19120 days in length.
20    (b-10) Each electric utility providing real-time pricing
21pursuant to subsection (b-5) shall install a meter capable of
22recording hourly interval energy use at the service location
23of each customer that elects real-time pricing pursuant to
24this subsection.
25    (b-15) If the Commission issues an order pursuant to
26subsection (b-5), the affected electric utility shall contract

 

 

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1with an entity not affiliated with the electric utility to
2serve as a program administrator to develop and implement a
3program to provide consumer outreach, enrollment, and
4education concerning real-time pricing and to establish and
5administer an information system and technical and other
6customer assistance that is necessary to enable customers to
7manage electricity use. The program administrator: (i) shall
8be selected and compensated by the electric utility, subject
9to Commission approval; (ii) shall have demonstrated technical
10and managerial competence in the development and
11administration of demand management programs; and (iii) may
12develop and implement risk management, energy efficiency, and
13other services related to energy use management for which the
14program administrator shall be compensated by participants in
15the program receiving such services. The electric utility
16shall provide the program administrator with all information
17and assistance necessary to perform the program
18administrator's duties, including, but not limited to,
19customer, account, and energy use data. The electric utility
20shall permit the program administrator to include inserts in
21residential customer bills 2 times per year to assist with
22customer outreach and enrollment.
23    The program administrator shall submit an annual report to
24the electric utility no later than April 1 of each year
25describing the operation and results of the program, including
26information concerning the number and types of customers using

 

 

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1real-time pricing, changes in customers' energy use patterns,
2an assessment of the value of the program to both participants
3and non-participants, and recommendations concerning
4modification of the program and the tariff or tariffs filed
5under subsection (b-5). This report shall be filed by the
6electric utility with the Commission within 30 days of receipt
7and shall be available to the public on the Commission's web
8site.
9    (b-20) The Commission shall monitor the performance of
10programs established pursuant to subsection (b-15) and shall
11order the termination or modification of a program if it
12determines that the program is not, after a reasonable period
13of time for development not to exceed 4 years, resulting in net
14benefits to the residential customers of the electric utility.
15    (b-25) An electric utility shall be entitled to recover
16reasonable costs incurred in complying with this Section,
17provided that recovery of the costs is fairly apportioned
18among its residential customers as provided in this subsection
19(b-25). The electric utility may apportion costs on the
20residential customers who elect real-time pricing, but may
21also impose some of the costs of real-time pricing on
22customers who do not elect real-time pricing.
23    (c) The electric utility's tariff or tariffs filed
24pursuant to this Section shall be subject to Article IX.
25    (d) This Section does not apply to any electric utility
26providing service to 100,000 or fewer customers.

 

 

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1    (e) Eligible customers shall include, but are not limited
2to, customers participating in net electricity metering under
3the 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
8that a program to provide net electricity metering, as defined
9in this Section, for eligible customers can encourage private
10investment in renewable energy resources, stimulate economic
11growth, enhance the continued diversification of Illinois'
12energy resource mix, and protect the Illinois environment. The
13General Assembly further finds and declares that ensuring a
14smooth, predictable transition from full net metering of the
15retail electricity rate to the distributed generation rebate
16described in Section 16-107.6 of this Act is important to
17achieve these legislative goals. In implementing the
18investigation discussed in subsection (e) of Section 16-107.6
19of this Act and the transition discussed in subsection (n) of
20this Section 16-107.5, the Commission shall ensure that
21distributed generation customers are fairly compensated for
22the benefits and services that customer-sited distributed
23generation provides and that the distributed generation market
24in Illinois continues to experience stable growth for both
25small and large customers.

 

 

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1    (b) As used in this Section: ,
2    (i) "Community community renewable generation project" has
3shall have the meaning set forth in Section 1-10 of the
4Illinois Power Agency Act. ;
5    "Delivery service provider" means a public utility as
6defined in subsection (a) of Section 3-105 of this Act.
7    "Electricity provider" means an electric utility or
8alternative retail electric supplier providing energy supply.
9    (ii) "Eligible eligible customer" means a retail customer
10or retail customers with that owns or operates a solar, wind,
11or other eligible renewable electrical generating facility
12with a rated capacity of not more than 2,000 kilowatts that is
13located on the customer's or customers' side of the billing
14meter premises and is intended primarily to offset the
15customer's or customers' own current or future electrical
16requirements when accounting for shading, orientation, and
17other siting factors that can reasonably be expected to alter
18an eligible renewable electrical generating facility's
19generation output. An eligible customer does not need to own
20the solar, wind, or other eligible renewable electrical
21generating facility. Subscribers to community renewable
22generation projects shall also be considered eligible
23customers for the purpose of this Section, including
24subscribers to community renewable generation projects that
25are larger than 2,000 kilowatts. ; (iii) "electricity provider"
26means an electric utility or alternative retail electric

 

 

HB0804 Engrossed- 667 -LRB102 10881 SPS 16211 b

1supplier;
2    (iv) "Eligible eligible renewable electrical generating
3facility" means a generator, which may include the co-location
4of an energy storage system, that is interconnected under
5rules adopted by the Commission and is powered by solar
6electric energy, wind, dedicated crops grown for electricity
7generation, agricultural residues, untreated and unadulterated
8wood waste, landscape trimmings, livestock manure, anaerobic
9digestion of livestock or food processing waste, fuel cells or
10microturbines powered by renewable fuels, or hydroelectric
11energy. ;
12    "Energy storage system" means commercially available
13technology that is capable of absorbing energy and storing it
14for a period of time for use at a later time, including, but
15not limited to, electrochemical, thermal, and
16electromechanical technologies, and may be interconnected on
17the customer's side of the billing meter or interconnected via
18its own meter.
19    "Future electrical requirements" means the reasonable
20anticipation of load growth, such as from the addition of an
21electric vehicle, the addition of electric space heating or
22water heating, modeled electrical requirements upon occupation
23of a new or vacant property, as well as other reasonable
24expectations of future electrical use.
25    (v) "Net net electricity metering" (or "net metering")
26means the measurement, during the billing period applicable to

 

 

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1an eligible customer, of the net amount of electricity
2supplied by an electricity provider to the customer customer's
3premises or provided to the electricity provider by the
4customer or subscriber. ;
5    "Statewide net metering penetration" means the sum of
6nameplate capacity of all net metering facilities in the
7State, excluding community renewable generation projects,
8divided by the sum of peak demand of electricity delivered by
9each delivery service provider (with the peak identified
10independently for each provider) in the State during the
11previous year.
12    (vi) "Subscriber subscriber" has shall have the meaning as
13set forth in Section 1-10 of the Illinois Power Agency Act. ;
14and
15    (vii) "Subscription subscription" has shall have the
16meaning set forth in Section 1-10 of the Illinois Power Agency
17Act.
18    (c) A net metering facility shall be equipped with
19metering equipment that can measure the flow of electricity in
20both 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

 

 

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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

 

 

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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
12credit for the net electricity supplied to eligible customers
13or provided by eligible customers whose electric service has
14not been declared competitive pursuant to Section 16-113 of
15this Act as of July 1, 2011 and whose electric delivery service
16is provided and measured on a kilowatt-hour basis and electric
17supply service is not provided based on hourly pricing in the
18following 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

 

 

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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
19credit for the net electricity supplied to eligible customers
20or provided by eligible customers whose electric service has
21not been declared competitive pursuant to Section 16-113 of
22this Act as of July 1, 2011 and whose electric delivery service
23is provided and measured on a kilowatt-hour basis and electric
24supply service is provided based on hourly pricing or
25time-of-use rates in the following manner:
26        (1) If the amount of electricity used by the customer

 

 

HB0804 Engrossed- 672 -LRB102 10881 SPS 16211 b

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
24credit for the net electricity supplied to eligible customers
25whose electric service has not been declared competitive
26pursuant to Section 16-113 of this Act as of July 1, 2011 and

 

 

HB0804 Engrossed- 673 -LRB102 10881 SPS 16211 b

1whose electric delivery service is provided and measured on a
2kilowatt demand basis and electric supply service is not
3provided 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.

 

 

HB0804 Engrossed- 674 -LRB102 10881 SPS 16211 b

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
8service to eligible customers who utilize net metering at
9non-discriminatory rates that are identical, with respect to
10rate structure, retail rate components, and any monthly
11charges, to the rates that the customer would be charged if not
12a net metering customer. An electricity provider shall not
13charge net metering customers any fee or charge or require
14additional equipment, insurance, or any other requirements not
15specifically authorized by interconnection standards
16authorized by the Commission, unless the fee, charge, or other
17requirement would apply to other similarly situated customers
18who are not net metering customers. The customer will remain
19responsible for all taxes, fees, and utility delivery charges
20that would otherwise be applicable to the net amount of
21electricity used by the customer. Subsections (c) through (e)
22of this Section shall not be construed to prevent an
23arms-length agreement between an electricity provider and an
24eligible customer that sets forth different prices, terms, and
25conditions for the provision of net metering service,
26including, but not limited to, the provision of the

 

 

HB0804 Engrossed- 675 -LRB102 10881 SPS 16211 b

1appropriate metering equipment for non-residential customers.
2    (f) Notwithstanding the requirements of subsections (c)
3through (e-5) of this Section, an electricity provider must
4require dual-channel metering for customers operating eligible
5renewable electrical generating facilities with a nameplate
6rating up to 2,000 kilowatts and to whom the provisions of
7neither subsection (d), (d-5), nor (e) of this Section apply.
8In such cases, electricity charges and credits shall be
9determined 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

 

 

HB0804 Engrossed- 676 -LRB102 10881 SPS 16211 b

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
11renewable energy credits or greenhouse gas credits, the
12eligible customer shall be treated as owning and having title
13to the renewable energy attributes, renewable energy credits,
14and greenhouse gas emission credits related to any electricity
15produced by the qualified generating unit. The electricity
16provider may not condition participation in a net metering
17program on the signing over of a customer's renewable energy
18credits; provided, however, this subsection (g) shall not be
19construed to prevent an arms-length agreement between an
20electricity provider and an eligible customer that sets forth
21the ownership or title of the credits.
22    (h) Within 120 days after the effective date of this
23amendatory Act of the 95th General Assembly, the Commission
24shall establish standards for net metering and, if the
25Commission has not already acted on its own initiative,
26standards for the interconnection of eligible renewable

 

 

HB0804 Engrossed- 677 -LRB102 10881 SPS 16211 b

1generating equipment to the utility system. The
2interconnection standards shall address any procedural
3barriers, delays, and administrative costs associated with the
4interconnection of customer-generation while ensuring the
5safety and reliability of the units and the electric utility
6system. The Commission shall consider the Institute of
7Electrical and Electronics Engineers (IEEE) Standard 1547 and
8the issues of (i) reasonable and fair fees and costs, (ii)
9clear timelines for major milestones in the interconnection
10process, (iii) nondiscriminatory terms of agreement, and (iv)
11any best practices for interconnection of distributed
12generation.
13    (h-3) On and after the effective date of this amendatory
14Act of the 102nd General Assembly, it is the policy of the
15State 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

 

 

HB0804 Engrossed- 678 -LRB102 10881 SPS 16211 b

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
25amendatory Act of the 102nd General Assembly, the Commission
26shall open a proceeding to update the interconnection

 

 

HB0804 Engrossed- 679 -LRB102 10881 SPS 16211 b

1standards and applicable utility tariffs. For the public
2interest, safety, and welfare of Illinois residents, the
3Commission may adopt emergency rules under Section 5-45 of the
4Illinois Administrative Procedure Act to implement the
5requirements of subsection (h-3) and this subsection (h-5). In
6addition to the requirements of subsection (h-3), the
7Commission shall also revise the standards to address critical
8standards 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;

 

 

HB0804 Engrossed- 680 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 681 -LRB102 10881 SPS 16211 b

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
15working group. The working group shall include representatives
16from electric utilities, developers of renewable electric
17generating facilities, representatives of interconnection
18customers, Commission staff, and other stakeholders. The
19working group shall be facilitated by Commission staff. The
20working group shall examine and make recommendations regarding
21best practices for interconnection process and customer
22service for interconnecting customer adopting distributed
23energy resources, including energy storage, interconnection of
24new technologies, including smart inverters and energy
25storage, and, without limitation, other technical, policy, and
26tariff issues related to and affecting interconnection

 

 

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1performance and customer service.
2    The working group shall report to the Commission on
3changes to interconnection rules and tariffs and any other
4recommendations as determined by the working group within 6
5months after its first meeting. The report shall include
6positions and recommendations of the working group and
7individual working group members. The report of the working
8group shall be entered into evidence in the rulemaking process
9mandated by this subsection (h-5). The working group shall be
10reconvened one year following the enactment of the rules
11adopted pursuant to this subsection (h-5) to recommend any
12additional changes and assess the performance of the rules in
13meeting the goals as described above.
14    (i) All electricity providers shall begin to offer net
15metering no later than April 1, 2008.
16    (j) An electricity provider shall provide net metering to
17eligible customers until both of the following occur: (i) the
18statewide net metering penetration equals 5% and (ii) the
19Commission approves the utility tariffs prescribed by
20subsection (e) of Section 16-107.6 of this Act that make
21distributed generation rebates available to all eligible
22customers, including residential customers, and those tariffs
23go into effect. After that time the load of its net metering
24customers equals 5% of the total peak demand supplied by that
25electricity provider during the previous year. After such time
26as the load of the electricity provider's net metering

 

 

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1customers equals 5% of the total peak demand supplied by that
2electricity provider during the previous year, eligible
3customers that begin taking net metering shall no longer be
4eligible for netting of delivery service credits as described
5in subsection (n) of this Section only be eligible for netting
6of energy.
7    (k) Each electricity provider shall maintain records and
8report annually to the Commission the total number of net
9metering customers served by the provider, as well as the
10type, capacity, and energy sources of the generating systems
11used by the net metering customers. Nothing in this Section
12shall limit the ability of an electricity provider to request
13the redaction of information deemed by the Commission to be
14confidential business information.
15    (l)(1) Notwithstanding the definition of "eligible
16customer" in item (ii) of subsection (b) of this Section, each
17electricity provider shall allow net metering as set forth in
18this 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

 

 

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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
14renewable electric generating facility that serves the demand
15of the properties, units, or apartments identified in
16paragraphs (1) and (2) of this subsection (l) shall not exceed
172,000 kilowatts in nameplate capacity in total. Any eligible
18renewable electrical generating facility or community
19renewable generation project that is powered by photovoltaic
20electric energy and installed after the effective date of this
21amendatory Act of the 99th General Assembly must be installed
22by a qualified person in compliance with the requirements of
23Section 16-128A of the Public Utilities Act and any rules or
24regulations adopted thereunder.
25    (2) Notwithstanding anything to the contrary, an
26electricity provider shall provide credits for the electricity

 

 

HB0804 Engrossed- 685 -LRB102 10881 SPS 16211 b

1produced by the projects described in paragraph (1) of this
2subsection (l). The electricity provider shall provide credits
3that include at least energy supply, capacity, transmission,
4and the purchased electricity adjustment, as applicable, at
5the subscriber's energy supply rate on the subscriber's
6monthly bill equal to the subscriber's share of the production
7of electricity from the project, as determined by paragraph
8(3) of this subsection (l).
9    (3) For the purposes of facilitating net metering, the
10owner or operator of the eligible renewable electrical
11generating facility or community renewable generation project
12shall be responsible for determining the amount of the credit
13that each customer or subscriber participating in a project
14under this subsection (l) is to receive in the following
15manner:
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

 

 

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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

 

 

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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
12the meter of a host facility, the determination of the
13quantity of energy eligible for crediting to participating
14customers or subscribers of the community renewable generation
15project shall be based on any energy production of the project
16that exceeds the host's instantaneous on-site consumption
17during the applicable billing period.
18    (l-5) Within 90 days after the effective date of this
19amendatory Act of the 102nd General Assembly this amendatory
20Act of the 99th General Assembly, each electric utility
21subject to this Section shall file a tariff to implement the
22provisions of subsection (l) of this Section, which shall,
23consistent with the provisions of subsection (l), describe the
24terms and conditions under which owners or operators of
25qualifying properties, units, or apartments may participate in
26net metering. The Commission shall approve, or approve with

 

 

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1modification, the tariff within 120 days after the effective
2date of this amendatory Act of the 102nd General Assembly this
3amendatory Act of the 99th General Assembly.
4    (m) Nothing in this Section shall affect the right of an
5electricity provider to continue to provide, or the right of a
6retail customer to continue to receive service pursuant to a
7contract for electric service between the electricity provider
8and the retail customer in accordance with the prices, terms,
9and conditions provided for in that contract. Either the
10electricity provider or the customer may require compliance
11with the prices, terms, and conditions of the contract.
12    (n) At such time, if any, that statewide net metering
13penetration equals 5% the load of the electricity provider's
14net metering customers equals 5% of the total peak demand
15supplied by that electricity provider during the previous
16year, as specified in subsection (j) of this Section, and the
17distributed generation rebate tariff for the electricity
18utility prescribed by subsection (e) of Section 16-107.6 of
19this Act has gone into effect and the rebate is approved and
20available to eligible customers, the net metering services
21described in subsections (d), (d-5), (e), (e-5), and (f) of
22this Section shall no longer be offered, except as to those
23eligible renewable generating facilities for which retail
24customers that are receiving net metering service under these
25subsections at the time the net metering services under those
26subsections are no longer offered; those systems shall

 

 

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1continue to receive net metering services described in
2subsections (d), (d-5), (e), (e-5), and (f) of this Section
3for the lifetime of the system, regardless of whether those
4retail customers change electricity providers or whether the
5retail customer benefiting from the system changes. Those
6retail customers that begin taking net metering service after
7the date that net metering services are no longer offered
8under such subsections shall be subject to the provisions set
9forth in the following paragraphs (1) through (3) of this
10subsection (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

 

 

HB0804 Engrossed- 690 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 691 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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1amendatory Act of the 102nd General Assembly, each electric
2utility subject to this Section shall file a tariff that
3shall, consistent with the provisions of this Section, propose
4the terms and conditions under which an eligible customer may
5participate in net metering. The Commission shall approve, or
6approve with modification based on a stakeholder process, the
7tariff within 120 days after the effective date of this
8amendatory Act of the 102nd General Assembly. Each electric
9utility shall file any changes to terms as a subsequent tariff
10for approval or approval with modifications from the
11Commission.
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
17technologies that are located on the customer side of the
18customer's electric meter and can provide value to the
19distribution system, including, but not limited to,
20distributed generation, energy storage, electric vehicles, and
21demand response technologies.
22    "Smart inverter" means a device that converts direct
23current into alternating current and meets the IEEE 1547-2018
24equipment standards. Until devices that meet the IEEE
251547-2018 standard are available, devices that meet the UL

 

 

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11741 SA standard are acceptable can autonomously contribute to
2grid support during excursions from normal operating voltage
3and frequency conditions by providing each of the following:
4dynamic reactive and real power support, voltage and frequency
5ride-through, ramp rate controls, communication systems with
6ability to accept external commands, and other functions from
7the electric utility.
8    "Subscriber" has the meaning set forth in Section 1-10 of
9the Illinois Power Agency Act.
10    "Subscription" has the meaning set forth in Section 1-10
11of the Illinois Power Agency Act.
12    "Threshold date" means the date on which statewide net
13metering penetration equals 5% the load of an electricity
14provider's net metering customers equals 5% of the total peak
15demand supplied by that electricity provider during the
16previous year, as specified under subsection (j) of Section
1716-107.5 of this Act.
18    (b) An electric utility that serves more than 200,000
19customers in the State shall file a petition with the
20Commission requesting approval of the utility's tariff to
21provide a rebate to a retail customer who owns or operates
22distributed 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

 

 

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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"
10shall satisfy the definition of distributed renewable energy
11generation device set forth in Section 1-10 of the Illinois
12Power Agency Act to the extent such definition is consistent
13with the requirements of this Section.
14    In addition, any new photovoltaic distributed generation
15that is installed after the effective date of this amendatory
16Act of the 99th General Assembly must be installed by a
17qualified person, as defined by subsection (i) of Section 1-56
18of the Illinois Power Agency Act.
19    The tariff shall provide that the smart inverter
20associated with the distributed generation shall provide
21autonomous responses to grid conditions through its default
22settings as approved by the Commission utility shall be
23permitted to operate and control the smart inverter associated
24with the distributed generation that is the subject of the
25rebate for the purpose of preserving reliability during
26distribution system reliability events and shall address the

 

 

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1terms and conditions of the operation and the compensation
2associated with the operation. Nothing in this Section shall
3negate or supersede Institute of Electrical and Electronics
4Engineers equipment interconnection requirements or standards
5or other similar standards or requirements. The tariff shall
6not limit the ability of the smart inverter or other
7distributed energy resource to provide wholesale market
8products such as regulation, demand response, or other
9services, or limit the ability of the owner of the smart
10inverter or the other distributed energy resource to receive
11compensation for providing those wholesale market products or
12services. The tariff shall also provide for additional uses of
13the smart inverter that shall be separately compensated and
14which may include, but are not limited to, voltage and VAR
15support, regulation, and other grid services. As part of the
16proceeding described in subsection (e) of this Section, the
17Commission shall review and determine whether smart inverters
18can provide any additional uses or services. If the Commission
19determines that an additional use or service would be
20beneficial, the Commission shall determine the terms and
21conditions of the operation and how the use or service should
22be separately compensated.
23    (c) The proposed tariff authorized by subsection (b) of
24this Section shall include the following participation terms
25and formulae to calculate the value of the rebates to be
26applied under this Section for distributed generation that

 

 

HB0804 Engrossed- 697 -LRB102 10881 SPS 16211 b

1satisfies the criteria set forth in subsection (b) of this
2Section:
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

 

 

HB0804 Engrossed- 698 -LRB102 10881 SPS 16211 b

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

 

 

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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
5submitted under subsections (b) and (c) of this Section and
6may make changes to the tariff that are consistent with this
7Section and with the Commission's authority under Article IX
8of this Act, subject to notice and hearing. Following notice
9and hearing, the Commission shall issue an order approving, or
10approving with modification, such tariff no later than 240
11days after the utility files its tariff.
12    (e) When statewide the total generating capacity of the
13electricity provider's net metering penetration, as defined in
14Section 16-107.5, customers is equal to 3%, the Commission
15shall open an investigation into a an annual process and
16formula for calculating the compensation value of rebates for
17the retail customers described in subsections (b) and (f) of
18this Section that submit rebate applications after the
19threshold date for an electric utility that elected to file a
20tariff pursuant to this Section. The investigation shall
21include, at minimum, diverse sets of stakeholders, a review of
22best practices in calculating the value of distributed energy
23resource benefits, and assessments of present and future
24technological capabilities of distributed energy resources.
25Compensation shall reflect all known and measurable values of
26the distributed energy resources over their full expected

 

 

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1useful lives. Compensation shall reflect, but shall not be
2limited to, any geographic, time-based, performance-based, and
3other benefits of distributed energy resources, as well as
4technological capabilities and present and future grid needs.
5The Commission's final order concluding this investigation
6shall establish a formula for the compensation of distributed
7energy resources, and an initial set of inputs for that
8formula. The Commission's final order concluding this
9proceeding shall also direct the utilities to update the
10formula, on an annual basis, with inputs derived from their
11integrated grid plans developed pursuant to Section 16-105.17.
12The Commission shall also determine, as a part of its
13investigation under this subsection, whether distributed
14energy resources can provide any additional beneficial uses or
15services through utility-controlled responses to grid
16conditions. If the Commission determines that distributed
17energy resources can provide additional beneficial uses or
18services, the Commission shall determine the terms and
19conditions for the operation and compensation of those uses
20and services. That compensation shall be above and beyond any
21rebate that the distributed energy resource receives. diverse
22sets of stakeholders, calculations for valuing distributed
23energy resource benefits to the grid based on best practices,
24and assessments of present and future technological
25capabilities of distributed energy resources. The value of
26such rebates shall reflect the value of the distributed

 

 

HB0804 Engrossed- 701 -LRB102 10881 SPS 16211 b

1generation to the distribution system at the location at which
2it is interconnected, taking into account the geographic,
3time-based, and performance-based benefits, as well as
4technological capabilities and present and future grid needs.
5The Commission shall consider the electric utility's
6integrated grid plan developed pursuant to Section 16-105.17
7of this Act to help identify the value of distributed energy
8resources for the purpose of calculating the rebates described
9in this subsection. The Commission shall determine additional
10compensation for distributed generation that creates savings
11and value on the distribution system by being co-located or in
12close proximity to electric vehicle charging infrastructure in
13use by medium-duty and heavy-duty vehicles, primarily serving
14environmental justice communities, as outlined in the utility
15integrated grid planning process under Section 16-105.17 of
16this Act. No later than 10 days after the Commission enters its
17final order under this subsection (e), each the utility shall
18file its tariff or tariffs in compliance with the order,
19including new tariffs for the recovery of costs incurred under
20this subsection (e) that shall provide for volumetric-based
21cost recovery, and the Commission shall approve, or approve
22with modification, the tariff or tariffs within 240 45 days
23after the utility's filing. For those rebate applications
24filed after the threshold date but before the utility's tariff
25or tariffs filed pursuant to this subsection (e) take effect,
26the value of the rebate shall remain at the value established

 

 

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1in subsection (c) of this Section until the tariff is
2approved. As part of the process, the Commission shall ensure
3that the distributed generation rebate results in stable
4growth of both small and large distributed generation projects
5in Illinois as provided in subsection (j) of Section 16-107.5
6of this Act, with particular attention to impacts to the
7growth of residential distributed generation customers. The
8Commission has the authority to establish interim rebate
9values for part or all of a utility's service territory to
10ensure transparency and stability of compensation for
11distributed energy resources in the utility's service
12territory.
13    (f) Notwithstanding any provision of this Act to the
14contrary, the owner, developer, or subscriber of a generation
15facility that is part of a net metering program provided under
16subsection (l) of Section 16-107.5 shall also be eligible to
17apply for the rebate described in this Section. A subscriber
18to the generation facility may apply for a rebate in the amount
19of the subscriber's subscription only if the owner, developer,
20or previous subscriber to the same panel or panels has not
21already submitted an application, and, regardless of whether
22the subscriber is a residential or non-residential customer,
23may be allowed the amount identified in paragraph (1) of
24subsection (c) or in subsection (e) of this Section applicable
25to such customer on the date that the application is
26submitted. An application for a rebate for a portion of a

 

 

HB0804 Engrossed- 703 -LRB102 10881 SPS 16211 b

1project described in this subsection (f) may be submitted at
2or after the time that a related request for net metering is
3made.
4    (g) No later than 60 days after the utility receives an
5application for a rebate under its tariff approved under
6subsection (d) or (e) of this Section, the utility shall issue
7a rebate to the applicant under the terms of the tariff. In the
8event the application is incomplete or the utility is
9otherwise unable to calculate the payment based on the
10information provided by the owner, the utility shall issue the
11payment no later than 60 days after the application is
12complete or all requested information is received.
13    (h) An electric utility shall recover from its retail
14customers all of the costs of the rebates made under a tariff
15or tariffs approved under subsection (d) of placed into effect
16under this Section, including, but not limited to, the value
17of the rebates and all costs incurred by the utility to comply
18with and implement subsections (b) and (c) of this Section,
19but not including costs incurred by the utility to comply with
20and implement subsection (e) of this Section, consistent with
21the 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

 

 

HB0804 Engrossed- 704 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 705 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 706 -LRB102 10881 SPS 16211 b

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
24customers, on a volumetric basis, all of the costs of the
25rebates made under a tariff or tariffs placed into effect
26under subsection (e) of this Section, including, but not

 

 

HB0804 Engrossed- 707 -LRB102 10881 SPS 16211 b

1limited to, the value of the rebates and all costs incurred by
2the utility to comply with and implement subsection (e) of
3this 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

 

 

HB0804 Engrossed- 708 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 709 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 710 -LRB102 10881 SPS 16211 b

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
12an order, or order on rehearing, whichever is later, approving
13an electric utility's proposed tariff under subsection (d) of
14this Section, the electric utility shall provide notice of the
15availability of rebates under this Section. Subsequent to the
16utility's notice, any entity that offers in the State, for
17sale or lease, distributed generation and estimates the dollar
18saving attributable to such distributed generation shall
19provide estimates based on both delivery service credits, if
20applicable and if available under Section 16-107.5 of this
21Act, 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

 

 

HB0804 Engrossed- 711 -LRB102 10881 SPS 16211 b

1pricing plans can lower energy costs for consumers and reduce
2grid costs as well as help Illinois achieve its energy policy
3goals by improving load shape, encouraging energy
4conservation, and shifting usage away from periods where
5fossil fuels are used to meet peak demand. Further, by
6providing consumers information relating the costs of service
7to the time of energy usage, time-of-use rates can help
8consumers reduce their energy bills by using electricity when
9it is less costly. Time-of-use rates can help allocate
10electricity system costs more accurately and thus equitably to
11those who cause costs. Such rates can reduce the need for
12ramping resources and increase the grid's ability to
13cost-effectively integrate greater quantities of variable
14renewable energy and distributed energy resources.
15    (b) An electric utility that has a tariff in effect under
16Section 16-108.5 as of the effective date of this amendatory
17Act of the 102nd General Assembly shall also offer at least one
18market-based, time-of-use rate for eligible retail customers
19that choose to take power and energy supply service from the
20utility. The utility shall file its time-of-use rate tariff no
21later than 120 days after the effective date of this
22amendatory Act of the 102nd General Assembly, and each utility
23subject to this requirement shall implement the requirements
24of this paragraph by filing a tariff with the Commission. The
25tariff or tariffs shall be subject to the following
26provisions:

 

 

HB0804 Engrossed- 712 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 713 -LRB102 10881 SPS 16211 b

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,
14customers participating in net electricity metering under the
15terms of Section 16-107.5.
16    (c) The Commission shall, after notice and hearing,
17approve the tariff or tariffs with modifications the
18Commission finds necessary to improve the program design,
19customer participation in the program, or coordination with
20existing utility pricing programs, energy efficiency programs,
21demand response programs, and any other programs supporting
22Illinois energy policy goals and the integration of
23distributed energy resources. The Commission shall also
24consider how the proposed time-of-use rate design reflects the
25system costs and usage patterns of the utility. A proceeding
26under this subsection may not exceed 120 days in length.

 

 

HB0804 Engrossed- 714 -LRB102 10881 SPS 16211 b

1    (d) If the Commission issues an order pursuant to this
2subsection, the affected electric utility shall contract with
3an entity not affiliated with the electric utility to serve as
4a program administrator to develop and implement a program to
5provide consumer outreach, enrollment, and education
6concerning time-of-use pricing and to establish and administer
7an information system and technical and other customer
8assistance that is necessary to enable customers to manage
9electricity use. The program administrator: (i) shall be
10selected and compensated by the electric utility, subject to
11Commission approval; (ii) shall have demonstrated technical
12and managerial competence in the development and
13administration of demand management programs; and (iii) may
14develop and implement risk management, energy efficiency, and
15other services related to energy use management for which the
16program administrator shall be compensated by participants in
17the program receiving such services. The electric utility
18shall provide the program administrator with all information
19and assistance necessary to perform the program
20administrator's duties, including, but not limited to,
21customer, account, and energy use data. The electric utility
22shall permit the program administrator to include inserts in
23residential customer bills 2 times per year to assist with
24customer outreach and enrollment.
25    The program administrator shall submit an annual report to
26the electric utility no later than April 1 of each year

 

 

HB0804 Engrossed- 715 -LRB102 10881 SPS 16211 b

1describing the operation and results of the program, including
2information concerning the number and types of customers using
3the program, changes in customers' energy use patterns, an
4assessment of the value of the program to both participants
5and nonparticipants, and recommendations concerning
6modification of the program and the tariff or tariffs filed
7under this Section. This report shall be filed by the electric
8utility with the Commission within 30 days after receipt and
9shall be available to the public on the Commission's website.
10    (e) Once the tariff or tariffs has been in effect for 24
11months, the Commission may, upon complaint, petition, or its
12own initiative, open a proceeding to investigate whether
13changes or modifications to the tariff or tariffs, program
14administration and any other program design element is
15necessary to achieve the goals described in subsection (a) of
16this Section. Such a proceeding may not last more than 120 days
17from the date upon which the investigation is opened by
18Commission order.
19    (f) An electric utility shall be entitled to recover
20reasonable costs incurred in complying with this Section,
21provided that recovery of the costs is fairly apportioned
22among its residential customers.
23    (g) The electric utility's tariff or tariffs filed
24pursuant to this Section shall be subject to the provisions of
25Article IX of this Act insofar as they do not conflict with
26this Section.

 

 

HB0804 Engrossed- 716 -LRB102 10881 SPS 16211 b

1    (h) This Section does not apply to any electric utility
2providing 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
6reliance on fossil fuels, reduce pollution from the
7transportation sector, increase access to electrification for
8all consumers, and ensure that electric vehicle adoption and
9increased electricity usage and demand do not place
10significant additional burdens on the electric system and
11create benefits for Illinois residents.
12    (b) As used in this Section:
13    "Beneficial electrification programs" means programs that
14lower carbon dioxide emissions, replace fossil fuel use,
15create cost savings, improve electric grid operations, reduce
16increases to peak demand, improve electric usage load shape,
17and align electric usage with times of renewable generation.
18All beneficial electrification programs shall provide for
19incentives such that customers are induced to use electricity
20at times of low overall system usage or at times when
21generation from renewable energy sources is high. "Beneficial
22electrification programs" include a portfolio of the
23following:
24        (1) time-of-use electric rates;
25        (2) hourly pricing electric rates;

 

 

HB0804 Engrossed- 717 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 718 -LRB102 10881 SPS 16211 b

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
11forth in Clean Jobs, Workforce and Contractor Equity Act.
12    "Displaced energy worker" has the meaning set forth in
13Section 20-10 of the Energy Community Reinvestment Act.
14    "Environmental justice communities" means the definition
15of that term based on existing methodologies and findings,
16used and as may be updated by the Illinois Power Agency and its
17program administrator in the Illinois Solar for All Program.
18    "Labor peace agreement" means an agreement between an
19entity and any labor organization recognized under the
20National Labor Relations Act, referred to in this Act as a bona
21fide labor organization, that may prohibit labor organizations
22and members from engaging in picketing, work stoppages,
23boycotts, and any other economic interference with the entity.
24This agreement means that the entity has agreed not to disrupt
25efforts by the bona fide labor organization to communicate
26with, and attempt to organize and represent, the entity's

 

 

HB0804 Engrossed- 719 -LRB102 10881 SPS 16211 b

1employees. The agreement shall provide a bona fide labor
2organization access at reasonable times to areas in which the
3entity's employees work, for the purpose of meeting with
4employees to discuss their right to representation, employment
5rights under State law, and terms and conditions of
6employment. This type of agreement shall not mandate a
7particular method of election or certification of the bona
8fide labor organization.
9    "Low-income" means persons and families whose income does
10not exceed 80% of area median income, adjusted for family size
11and revised every 2 years.
12    "Optimized charging programs" mean programs whereby owners
13of electric vehicles can set their vehicles to be charged
14based on the electric system's current demand, retail or
15wholesale market rates, incentives, the carbon or other
16pollution intensity of the electric generation mix, the
17provision of grid services, efficient use of the electric
18grid, or the availability of clean energy generation.
19Optimized charging programs may be operated by utilities as
20well as third parties.
21    "BIPOC" and "black, indigenous, and people of color" are
22identical in meaning and have the same definition as used in
23the Clean Jobs, Workforce and Contractor Equity Act.
24    (c) No later than November 30, 2021, electric utilities
25serving greater than 500,000 customers in the State shall
26initiate a stakeholder workshop process to solicit input on

 

 

HB0804 Engrossed- 720 -LRB102 10881 SPS 16211 b

1the design of beneficial electrification programs that the
2utility shall offer. The stakeholder workshop process shall
3take into consideration the benefits of electric vehicle
4adoption 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
26discrete beneficial electrification programs and shall provide

 

 

HB0804 Engrossed- 721 -LRB102 10881 SPS 16211 b

1estimates of the costs and benefits of those programs in the
2workshops. The process shall be open and transparent with
3inclusion of stakeholder interests, including stakeholders
4representing environmental justice and low-income communities.
5    (d) No later than May 31, 2022, electric utilities serving
6greater than 500,000 customers in the State shall file a
7Beneficial Electrification Plan with the Illinois Commerce
8Commission for programs that start no later than January 1,
92023. The Beneficial Electrification Plan shall specifically
10address, 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

 

 

HB0804 Engrossed- 722 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 723 -LRB102 10881 SPS 16211 b

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
9under subsection (d) shall include at least the following
10programs:
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%

 

 

HB0804 Engrossed- 724 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 725 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 726 -LRB102 10881 SPS 16211 b

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
5electric utility's (if serving more than 500,000 customers)
6Beneficial Electrification Plan to determine if the proposed
7plan is cost-beneficial. The plan shall be determined to be
8cost-beneficial if the total cost of beneficial
9electrification expenditures is less than the net present
10value of increased electricity costs (defined as marginal
11avoided energy, avoided capacity, and avoided transmission and
12distribution system costs) avoided by programs under the plan,
13the net present value of reductions in other customer energy
14costs, and the societal value of reduced carbon emissions and
15surface-level pollutants, particularly in environmental
16justice communities. The calculation of costs and benefits
17should be based on net impacts. The Commission shall review
18the Plan and determine whether the portfolio of programs or
19initiatives as a whole is optimized to address all key policy
20objectives, including: maximizing total energy cost savings,
21maximizing rate reductions so that nonparticipants can
22benefit, facilitating better grid management, maximizing
23carbon emission reductions, reducing other harmful emissions
24and particularly localized emissions in economically
25disadvantaged and environmental justice communities, and
26addressing environmental justice interests by ensuring there

 

 

HB0804 Engrossed- 727 -LRB102 10881 SPS 16211 b

1are significant opportunities for residents and businesses in
2environmental justice communities to directly participate in
3and benefit from programs.
4    (g) Any electric utility serving more than 500,000
5customers shall update its Beneficial Electrification Plan
6every 3 years and, beginning with the first update, shall
7develop the Plan in conjunction with the distribution system
8planning process described in Section 16-105.17 of this Act,
9including incorporation of stakeholder feedback from that
10process.
11    (h) For utilities serving more than 3,000,000 retail
12customers in the State, the annual total cost of all programs
13and initiatives in the Beneficial Electrification Plan shall
14not exceed $50,000,000 per year and shall be recovered
15volumetrically from all retail customers as an operating
16expense in its Multi-Year Rate Plan. For utilities serving
17less than 3,000,000 retail customers, but more than 500,000
18retail customers, the annual total cost of all programs and
19initiatives in the Beneficial Electrification Plan shall not
20exceed $21,000,000 per year and shall be recovered
21volumetrically from all retail customers as an operating
22expense in its Multi-Year Rate Plan.
23    (i) In meeting the requirements of this Section, to the
24extent feasible and consistent with State and federal law, all
25beneficial electrification programs included in Beneficial
26Electrification Plans shall provide employment opportunities

 

 

HB0804 Engrossed- 728 -LRB102 10881 SPS 16211 b

1for all segments of the population and workforce, including
2BIPOC-owned and women-owned business enterprises, as well as
3BIPOC-owned and women-owned worker-owned cooperatives or other
4such employee-owned entities, and shall not, consistent with
5State and federal law, discriminate based on race or
6socioeconomic status.
7    Specifically, to the extent feasible and consistent with
8State and federal law, as utilities conduct selection and
9contracting of businesses, nonprofit organizations, or
10worker-owned cooperatives for implementation of beneficial
11electrification programs or projects providing electrification
12for vehicles and associated electric vehicle infrastructure,
13utilities must give preference to businesses, nonprofit
14organizations, or worker-owned cooperatives as described in
15the workforce equity actions points calculation as specified
16in this subsection (i). Utilities shall track and award equity
17actions in selection of businesses, nonprofit organizations,
18or worker-owned cooperatives, using a points system totaling a
19maximum of 235 points. This system shall consider both equity
20actions to meet the goals described in this Section and the bid
21prices, as specified in paragraphs (1) through (9) of this
22subsection (i). Businesses, nonprofit organizations, and
23worker-owned cooperatives that are selected and contracted for
24implementation of beneficial electrification programs or
25projects providing electrification for vehicles and associated
26electric vehicle infrastructure by utilities shall submit no

 

 

HB0804 Engrossed- 729 -LRB102 10881 SPS 16211 b

1later than June 1 of each applicable year an annual report of
2elements described in the equity actions points calculation in
3paragraphs (1) through (9) of this subsection (i) for the
4first 3 years after the year in which installation contracts
5were awarded.
6    (1) Hiring Equity Action (up to 20 points): awarded based
7on the percentage of the company's or entity's workforce
8(measured by full-time equivalents as defined by the
9Government Accountability Office of the United States
10Congress) are black, indigenous, and people of color and are
11paid at or above the prevailing wage. One point shall be
12awarded for each 5% of the workforce which is composed of BIPOC
13persons who are also paid at or above the prevailing wage, up
14to a maximum of 20 points.
15    (2) Clean Jobs Workforce Hubs and Returning Residents
16Action (up to 20 points): awarded based on the percentage of
17the workers associated with the project who are graduates or
18trainees from the Clean Jobs Workforce Hubs Network Program,
19or the Returning Residents Clean Jobs Training Program, or
20equivalent certification, and paid at or above the prevailing
21wage; one point shall be awarded for each 5% of the workforce
22which is composed of Clean Jobs Workforce Hubs Network Program
23graduates or trainees or Returning Residents Clean Jobs
24Training Program graduates or trainees who are also paid a
25living wage, up to a maximum of 20 points.
26    (3) BIPOC Business Enterprise Action (30 points): being

 

 

HB0804 Engrossed- 730 -LRB102 10881 SPS 16211 b

1(i) an entity defined as a minority-owned business under
2Section 2 of the Business Enterprise for Minorities, Women,
3and Persons with Disabilities Act or (ii) an entity, including
4a business, a nonprofit, or a worker-owned cooperative
5registered with other state, regional, or local programs
6intended to certify minority-owned entities.
7    (4) Contracting Equity Action (20 points): awarded based
8on the percentage of the company's or entity's subcontractors
9or vendors are entities defined as a minority-owned business
10or a women-owned business under Section 2 of the Business
11Enterprise for Minorities, Women, and Persons with
12Disabilities Act or on the percentage of the subcontracted
13workers associated with the project, including from all
14subcontractors and vendors, are BIPOC persons (members of a
15racial or ethnic minority group) paid at or above the
16prevailing wage; 5 points shall be awarded for each 10% of
17either subcontractors or subcontractors' workers who are BIPOC
18persons, whichever is greater, up to a maximum of 20 points. If
19a company or entity does not use subcontractors or vendors,
20points awarded for the Contracting Equity Action shall be
21equivalent to the point value awarded for the Hiring Equity
22Action under paragraph(1).
23    (5) Expanding Clean Energy Entrepreneurship Action (20
24points): awarded to entities who are current or former
25disadvantaged participant contractors in the Expanding Clean
26Energy Entrepreneurship and Contractor Incubators Network

 

 

HB0804 Engrossed- 731 -LRB102 10881 SPS 16211 b

1Program or current or former participants in the Illinois
2Clean Energy Black, Indigenous, and People of Color Primes
3Contractor Accelerator Program.
4    (6) Community Benefits Action (15 points): (i) for
5projects 100 kW in size or larger, project has an executed
6Community Benefits Agreement that could include, but is not
7limited to a commitment to hire local workers, union workers,
8energy workers transitioning to clean energy jobs, Clean Jobs
9Workforce Hubs Network Program graduates, or current or former
10disadvantaged participant contractors in the Expanding Clean
11Energy Entrepreneurship and Contractor Incubators Network
12Program; a commitment to pay workers at or above the
13prevailing wage; and a commitment to give communities
14ownership opportunities in electric vehicle projects, where
15relevant; and (ii) for projects under 100 kW in size,
16companies pay their workforces at or above the prevailing
17wage.
18    (7) Small Business Action (15 points): the entity's
19workforce is composed of 3 or fewer full-time employees
20(measured by full-time equivalents as defined by the
21Government Accountability Office of the United States
22Congress).
23    (8) Labor Peace Agreements Action (10 points): (i) for an
24installer with 20 or more employees: the installer attests
25that the installer has entered into a labor peace agreement,
26will abide by the terms of the agreement, and will submit a

 

 

HB0804 Engrossed- 732 -LRB102 10881 SPS 16211 b

1copy of the page of the labor peace agreement that contains the
2signatures of the union representative and the installer, or
3(ii) for an installer that is a party to a labor peace
4agreement with a bona fide labor organization that currently
5represents, or is actively seeking to represent electric
6vehicle infrastructure and equipment installers and other
7workers in Illinois, or (iii) the installer submits an
8attestation affirming that the installer will use best efforts
9to use union labor in the installer's projects and in the
10construction or retrofit of the facilities associated with the
11installer's electric vehicle infrastructure and equipment
12operations, where applicable.
13    (9) Price of bid (130 points): as scored by utilities
14awarding contracts to electric vehicle installers.
15    Bids scoring fewer than 135 points shall not be awarded
16contracts.
 
17    (220 ILCS 5/16-108)
18    Sec. 16-108. Recovery of costs associated with the
19provision of delivery and other services.
20    (a) An electric utility shall file a delivery services
21tariff with the Commission at least 210 days prior to the date
22that it is required to begin offering such services pursuant
23to this Act. An electric utility shall provide the components
24of delivery services that are subject to the jurisdiction of
25the Federal Energy Regulatory Commission at the same prices,

 

 

HB0804 Engrossed- 733 -LRB102 10881 SPS 16211 b

1terms and conditions set forth in its applicable tariff as
2approved or allowed into effect by that Commission. The
3Commission shall otherwise have the authority pursuant to
4Article IX to review, approve, and modify the prices, terms
5and conditions of those components of delivery services not
6subject to the jurisdiction of the Federal Energy Regulatory
7Commission, including the authority to determine the extent to
8which such delivery services should be offered on an unbundled
9basis. In making any such determination the Commission shall
10consider, at a minimum, the effect of additional unbundling on
11(i) the objective of just and reasonable rates, (ii) electric
12utility employees, and (iii) the development of competitive
13markets for electric energy services in Illinois.
14    (b) The Commission shall enter an order approving, or
15approving as modified, the delivery services tariff no later
16than 30 days prior to the date on which the electric utility
17must commence offering such services. The Commission may
18subsequently modify such tariff pursuant to this Act.
19    (c) The electric utility's tariffs shall define the
20classes of its customers for purposes of delivery services
21charges. Delivery services shall be priced and made available
22to all retail customers electing delivery services in each
23such class on a nondiscriminatory basis regardless of whether
24the retail customer chooses the electric utility, an affiliate
25of the electric utility, or another entity as its supplier of
26electric power and energy. Charges for delivery services shall

 

 

HB0804 Engrossed- 734 -LRB102 10881 SPS 16211 b

1be cost based, and shall allow the electric utility to recover
2the costs of providing delivery services through its charges
3to its delivery service customers that use the facilities and
4services associated with such costs. Such costs shall include
5the costs of owning, operating and maintaining transmission
6and distribution facilities. The Commission shall also be
7authorized to consider whether, and if so to what extent, the
8following costs are appropriately included in the electric
9utility's delivery services rates: (i) the costs of that
10portion of generation facilities used for the production and
11absorption of reactive power in order that retail customers
12located in the electric utility's service area can receive
13electric power and energy from suppliers other than the
14electric utility, and (ii) the costs associated with the use
15and redispatch of generation facilities to mitigate
16constraints on the transmission or distribution system in
17order that retail customers located in the electric utility's
18service area can receive electric power and energy from
19suppliers other than the electric utility. Nothing in this
20subsection shall be construed as directing the Commission to
21allocate any of the costs described in (i) or (ii) that are
22found to be appropriately included in the electric utility's
23delivery services rates to any particular customer group or
24geographic area in setting delivery services rates.
25    (d) The Commission shall establish charges, terms and
26conditions for delivery services that are just and reasonable

 

 

HB0804 Engrossed- 735 -LRB102 10881 SPS 16211 b

1and shall take into account customer impacts when establishing
2such charges. In establishing charges, terms and conditions
3for delivery services, the Commission shall take into account
4voltage level differences. A retail customer shall have the
5option to request to purchase electric service at any delivery
6service voltage reasonably and technically feasible from the
7electric facilities serving that customer's premises provided
8that there are no significant adverse impacts upon system
9reliability or system efficiency. A retail customer shall also
10have the option to request to purchase electric service at any
11point of delivery that is reasonably and technically feasible
12provided that there are no significant adverse impacts on
13system reliability or efficiency. Such requests shall not be
14unreasonably denied.
15    (e) Electric utilities shall recover the costs of
16installing, operating or maintaining facilities for the
17particular benefit of one or more delivery services customers,
18including without limitation any costs incurred in complying
19with a customer's request to be served at a different voltage
20level, directly from the retail customer or customers for
21whose benefit the costs were incurred, to the extent such
22costs are not recovered through the charges referred to in
23subsections (c) and (d) of this Section.
24    (f) An electric utility shall be entitled but not required
25to implement transition charges in conjunction with the
26offering of delivery services pursuant to Section 16-104. If

 

 

HB0804 Engrossed- 736 -LRB102 10881 SPS 16211 b

1an electric utility implements transition charges, it shall
2implement such charges for all delivery services customers and
3for all customers described in subsection (h), but shall not
4implement transition charges for power and energy that a
5retail customer takes from cogeneration or self-generation
6facilities located on that retail customer's premises, if such
7facilities 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

 

 

HB0804 Engrossed- 737 -LRB102 10881 SPS 16211 b

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).
24If a generation facility located at a retail customer's
25premises does not meet the above criteria, an electric utility
26implementing transition charges shall implement a transition

 

 

HB0804 Engrossed- 738 -LRB102 10881 SPS 16211 b

1charge until December 31, 2006 for any power and energy taken
2by such retail customer from such facility as if such power and
3energy had been delivered by the electric utility. Provided,
4however, that an industrial retail customer that is taking
5power from a generation facility that does not meet the above
6criteria but that is located on such customer's premises will
7not be subject to a transition charge for the power and energy
8taken by such retail customer from such generation facility if
9the facility does not serve any other retail customer and
10either was installed on behalf of the customer and for its own
11use prior to January 1, 1997, or is both predominantly fueled
12by byproducts of such customer's manufacturing process at such
13premises and sells or offers an average of 300 megawatts or
14more of electricity produced from such generation facility
15into the wholesale market. Such charges shall be calculated as
16provided in Section 16-102, and shall be collected on each
17kilowatt-hour delivered under a delivery services tariff to a
18retail customer from the date the customer first takes
19delivery services until December 31, 2006 except as provided
20in subsection (h) of this Section. Provided, however, that an
21electric utility, other than an electric utility providing
22service to at least 1,000,000 customers in this State on
23January 1, 1999, shall be entitled to petition for entry of an
24order by the Commission authorizing the electric utility to
25implement transition charges for an additional period ending
26no later than December 31, 2008. The electric utility shall

 

 

HB0804 Engrossed- 739 -LRB102 10881 SPS 16211 b

1file its petition with supporting evidence no earlier than 16
2months, and no later than 12 months, prior to December 31,
32006. The Commission shall hold a hearing on the electric
4utility's petition and shall enter its order no later than 8
5months after the petition is filed. The Commission shall
6determine whether and to what extent the electric utility
7shall be authorized to implement transition charges for an
8additional period. The Commission may authorize the electric
9utility to implement transition charges for some or all of the
10additional period, and shall determine the mitigation factors
11to be used in implementing such transition charges; provided,
12that the Commission shall not authorize mitigation factors
13less than 110% of those in effect during the 12 months ended
14December 31, 2006. In making its determination, the Commission
15shall consider the following factors: the necessity to
16implement transition charges for an additional period in order
17to maintain the financial integrity of the electric utility;
18the prudence of the electric utility's actions in reducing its
19costs since the effective date of this amendatory Act of 1997;
20the ability of the electric utility to provide safe, adequate
21and reliable service to retail customers in its service area;
22and the impact on competition of allowing the electric utility
23to implement transition charges for the additional period.
24    (g) The electric utility shall file tariffs that establish
25the transition charges to be paid by each class of customers to
26the electric utility in conjunction with the provision of

 

 

HB0804 Engrossed- 740 -LRB102 10881 SPS 16211 b

1delivery services. The electric utility's tariffs shall define
2the classes of its customers for purposes of calculating
3transition charges. The electric utility's tariffs shall
4provide for the calculation of transition charges on a
5customer-specific basis for any retail customer whose average
6monthly maximum electrical demand on the electric utility's
7system during the 6 months with the customer's highest monthly
8maximum electrical demands equals or exceeds 3.0 megawatts for
9electric utilities having more than 1,000,000 customers, and
10for other electric utilities for any customer that has an
11average monthly maximum electrical demand on the electric
12utility's system of one megawatt or more, and (A) for which
13there exists data on the customer's usage during the 3 years
14preceding the date that the customer became eligible to take
15delivery services, or (B) for which there does not exist data
16on the customer's usage during the 3 years preceding the date
17that the customer became eligible to take delivery services,
18if in the electric utility's reasonable judgment there exists
19comparable usage information or a sufficient basis to develop
20such information, and further provided that the electric
21utility can require customers for which an individual
22calculation is made to sign contracts that set forth the
23transition charges to be paid by the customer to the electric
24utility pursuant to the tariff.
25    (h) An electric utility shall also be entitled to file
26tariffs that allow it to collect transition charges from

 

 

HB0804 Engrossed- 741 -LRB102 10881 SPS 16211 b

1retail customers in the electric utility's service area that
2do not take delivery services but that take electric power or
3energy from an alternative retail electric supplier or from an
4electric utility other than the electric utility in whose
5service area the customer is located. Such charges shall be
6calculated, in accordance with the definition of transition
7charges in Section 16-102, for the period of time that the
8customer would be obligated to pay transition charges if it
9were taking delivery services, except that no deduction for
10delivery services revenues shall be made in such calculation,
11and usage data from the customer's class shall be used where
12historical usage data is not available for the individual
13customer. The customer shall be obligated to pay such charges
14on a lump sum basis on or before the date on which the customer
15commences to take service from the alternative retail electric
16supplier or other electric utility, provided, that the
17electric utility in whose service area the customer is located
18shall offer the customer the option of signing a contract
19pursuant to which the customer pays such charges ratably over
20the period in which the charges would otherwise have applied.
21    (i) An electric utility shall be entitled to add to the
22bills of delivery services customers charges pursuant to
23Sections 9-221, 9-222 (except as provided in Section 9-222.1),
24and Section 16-114 of this Act, Section 5-5 of the Electricity
25Infrastructure Maintenance Fee Law, Section 6-5 of the
26Renewable Energy, Energy Efficiency, and Coal Resources

 

 

HB0804 Engrossed- 742 -LRB102 10881 SPS 16211 b

1Development Law of 1997, and Section 13 of the Energy
2Assistance Act.
3    (j) If a retail customer that obtains electric power and
4energy from cogeneration or self-generation facilities
5installed for its own use on or before January 1, 1997,
6subsequently takes service from an alternative retail electric
7supplier or an electric utility other than the electric
8utility in whose service area the customer is located for any
9portion of the customer's electric power and energy
10requirements formerly obtained from those facilities
11(including that amount purchased from the utility in lieu of
12such generation and not as standby power purchases, under a
13cogeneration displacement tariff in effect as of the effective
14date of this amendatory Act of 1997), the transition charges
15otherwise applicable pursuant to subsections (f), (g), or (h)
16of this Section shall not be applicable in any year to that
17portion of the customer's electric power and energy
18requirements formerly obtained from those facilities,
19provided, that for purposes of this subsection (j), such
20portion shall not exceed the average number of kilowatt-hours
21per year obtained from the cogeneration or self-generation
22facilities during the 3 years prior to the date on which the
23customer became eligible for delivery services, except as
24provided in subsection (f) of Section 16-110.
25    (k) The electric utility shall be entitled to recover
26through tariffed charges all of the costs associated with the

 

 

HB0804 Engrossed- 743 -LRB102 10881 SPS 16211 b

1purchase of zero emission credits from zero emission
2facilities to meet the requirements of subsection (d-5) of
3Section 1-75 of the Illinois Power Agency Act. Such costs
4shall include the costs of procuring the zero emission
5credits, as well as the reasonable costs that the utility
6incurs as part of the procurement processes and to implement
7and comply with plans and processes approved by the Commission
8under such subsection (d-5). The costs shall be allocated
9across all retail customers through a single, uniform cents
10per kilowatt-hour charge applicable to all retail customers,
11which shall appear as a separate line item on each customer's
12bill. Beginning June 1, 2017, the electric utility shall be
13entitled to recover through tariffed charges all of the costs
14associated with the purchase of renewable energy resources to
15meet the long-term goals and targets of the renewable energy
16resource standards of subsection (c) of Section 1-75 of the
17Illinois Power Agency Act, under procurement plans as approved
18in accordance with that Section and Section 16-111.5 of this
19Act. Such costs shall include the costs of procuring the
20renewable energy resources, as well as the reasonable costs
21that the utility incurs as part of the procurement processes
22and to implement and comply with plans and processes approved
23by the Commission under such Sections. The costs associated
24with the purchase of renewable energy resources shall be
25allocated across all retail customers in proportion to the
26amount of renewable energy resources the utility procures for

 

 

HB0804 Engrossed- 744 -LRB102 10881 SPS 16211 b

1such customers through a single, uniform cents per
2kilowatt-hour charge applicable to such retail customers,
3which shall appear as a separate line item on each such
4customer's bill.
5    Notwithstanding whether the Commission has approved the
6initial long-term renewable resources procurement plan as of
7June 1, 2017, an electric utility shall place new tariffed
8charges into effect beginning with the June 2017 monthly
9billing period, to the extent practicable, to begin recovering
10the costs of procuring renewable energy resources, as those
11charges are calculated under the limitations described in
12subparagraph (E) of paragraph (1) of subsection (c) of Section
131-75 of the Illinois Power Agency Act. Notwithstanding the
14date on which the utility places such new tariffed charges
15into effect, the utility shall be permitted to collect the
16charges under such tariff as if the tariff had been in effect
17beginning with the first day of the June 2017 monthly billing
18period. Money collected from customers for the procurement of
19renewable energy resources in a given delivery may be spent by
20the utility for the procurement of renewable resources over
21any of the following 5 delivery years, after which money shall
22be credited back to retail customers, provided that up to
23$170,000,000 of funds collected, but not used, in a given
24delivery year are first made available to the Illinois Solar
25for All Program established under subsection (b) of Section
261-56 of the Illinois Power Agency Act to cover budget

 

 

HB0804 Engrossed- 745 -LRB102 10881 SPS 16211 b

1shortfalls due to unexpected fluctuations in the amount of
2money available to that Program from the Illinois Power Agency
3Renewable Energy Resources Fund. The electric utility shall
4spend all money collected in earlier delivery years that has
5not yet been returned to customers, first, before spending
6money collected in later delivery years. The For the delivery
7years commencing June 1, 2017, June 1, 2018, and June 1, 2019,
8the electric utility shall deposit into a separate interest
9bearing account of a financial institution the monies
10collected under the tariffed charges. Any interest earned
11shall be credited back to retail customers under the
12reconciliation proceeding provided for in this subsection (k),
13provided that the electric utility shall first be reimbursed
14from the interest for the administrative costs that it incurs
15to administer and manage the account. Any taxes due on the
16funds in the account, or interest earned on it, will be paid
17from the account or, if insufficient monies are available in
18the account, from the monies collected under the tariffed
19charges to recover the costs of procuring renewable energy
20resources. Monies deposited in the account shall be subject to
21the review, reconciliation, and true-up process described in
22this subsection (k) that is applicable to the funds collected
23and costs incurred for the procurement of renewable energy
24resources.
25    The electric utility shall be entitled to recover all of
26the costs identified in this subsection (k) through automatic

 

 

HB0804 Engrossed- 746 -LRB102 10881 SPS 16211 b

1adjustment clause tariffs applicable to all of the utility's
2retail customers that allow the electric utility to adjust its
3tariffed charges consistent with this subsection (k). The
4determination as to whether any excess funds were collected
5during a given delivery year for the purchase of renewable
6energy resources, and the crediting of any excess funds back
7to retail customers, shall not be made until after the close of
8the delivery year, which will ensure that the maximum amount
9of funds is available to implement the approved long-term
10renewable resources procurement plan during a given delivery
11year. The electric utility's collections under such automatic
12adjustment clause tariffs to recover the costs of renewable
13energy resources and zero emission credits from zero emission
14facilities shall be subject to separate annual review,
15reconciliation, and true-up against actual costs by the
16Commission under a procedure that shall be specified in the
17electric utility's automatic adjustment clause tariffs and
18that shall be approved by the Commission in connection with
19its approval of such tariffs. The procedure shall provide that
20any difference between the electric utility's collections for
21zero emission credits under the automatic adjustment charges
22for an annual period and the electric utility's actual costs
23of renewable energy resources and zero emission credits from
24zero emission facilities for that same annual period shall be
25refunded to or collected from, as applicable, the electric
26utility's retail customers in subsequent periods.

 

 

HB0804 Engrossed- 747 -LRB102 10881 SPS 16211 b

1    Nothing in this subsection (k) is intended to affect,
2limit, or change the right of the electric utility to recover
3the costs associated with the procurement of renewable energy
4resources for periods commencing before, on, or after June 1,
52017, as otherwise provided in the Illinois Power Agency Act.
6    Notwithstanding anything to the contrary, the Commission
7shall not conduct an annual review, reconciliation, and
8true-up associated with renewable energy resources'
9collections and costs for the delivery years commencing June
101, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and
11shall instead conduct a single review, reconciliation, and
12true-up associated with renewable energy resources'
13collections and costs for the 4-year period beginning June 1,
142017 and ending May 31, 2021, provided that the review,
15reconciliation, and true-up shall not be initiated until after
16August 31, 2021. During the 4-year period, the utility shall
17be permitted to collect and retain funds under this subsection
18(k) and to purchase renewable energy resources under an
19approved long-term renewable resources procurement plan using
20those funds regardless of the delivery year in which the funds
21were collected during the 4-year period.
22    If the amount of funds collected during the delivery year
23commencing June 1, 2017, exceeds the costs incurred during
24that delivery year, then up to half of this excess amount, as
25calculated on June 1, 2018, may be used to fund the programs
26under subsection (b) of Section 1-56 of the Illinois Power

 

 

HB0804 Engrossed- 748 -LRB102 10881 SPS 16211 b

1Agency Act in the same proportion the programs are funded
2under that subsection (b). However, any amount identified
3under this subsection (k) to fund programs under subsection
4(b) of Section 1-56 of the Illinois Power Agency Act shall be
5reduced if it exceeds the funding shortfall. For purposes of
6this Section, "funding shortfall" means the difference between
7$200,000,000 and the amount appropriated by the General
8Assembly to the Illinois Power Agency Renewable Energy
9Resources Fund during the period that commences on the
10effective date of this amendatory act of the 99th General
11Assembly and ends on August 1, 2018.
12    If the amount of funds collected during the delivery year
13commencing June 1, 2018, exceeds the costs incurred during
14that delivery year, then up to half of this excess amount, as
15calculated on June 1, 2019, may be used to fund the programs
16under subsection (b) of Section 1-56 of the Illinois Power
17Agency Act in the same proportion the programs are funded
18under that subsection (b). However, any amount identified
19under this subsection (k) to fund programs under subsection
20(b) of Section 1-56 of the Illinois Power Agency Act shall be
21reduced if it exceeds the funding shortfall.
22    If the amount of funds collected during the delivery year
23commencing June 1, 2019, exceeds the costs incurred during
24that delivery year, then up to half of this excess amount, as
25calculated on June 1, 2020, may be used to fund the programs
26under subsection (b) of Section 1-56 of the Illinois Power

 

 

HB0804 Engrossed- 749 -LRB102 10881 SPS 16211 b

1Agency Act in the same proportion the programs are funded
2under that subsection (b). However, any amount identified
3under this subsection (k) to fund programs under subsection
4(b) of Section 1-56 of the Illinois Power Agency Act shall be
5reduced if it exceeds the funding shortfall.
6    The funding available under this subsection (k), if any,
7for the programs described under subsection (b) of Section
81-56 of the Illinois Power Agency Act shall not reduce the
9amount of funding for the programs described in subparagraph
10(O) of paragraph (1) of subsection (c) of Section 1-75 of the
11Illinois Power Agency Act. If funding is available under this
12subsection (k) for programs described under subsection (b) of
13Section 1-56 of the Illinois Power Agency Act, then the
14long-term renewable resources plan shall provide for the
15Agency to procure contracts in an amount that does not exceed
16the funding, and the contracts approved by the Commission
17shall be executed by the applicable utility or utilities.
18    (l) A utility that has terminated any contract executed
19under subsection (d-5) of Section 1-75 of the Illinois Power
20Agency Act shall be entitled to recover any remaining balance
21associated with the purchase of zero emission credits prior to
22such termination, and such utility shall also apply a credit
23to its retail customer bills in the event of any
24over-collection.
25        (m)(1) An electric utility that recovers its costs of
26    procuring zero emission credits from zero emission

 

 

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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

 

 

HB0804 Engrossed- 751 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 752 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 753 -LRB102 10881 SPS 16211 b

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
5modernization; regulatory reform.
6    (a) (Blank).
7    (b) For purposes of this Section, "participating utility"
8means an electric utility or a combination utility serving
9more than 1,000,000 customers in Illinois that voluntarily
10elects and commits to undertake (i) the infrastructure
11investment program consisting of the commitments and
12obligations described in this subsection (b) and (ii) the
13customer assistance program consisting of the commitments and
14obligations described in subsection (b-10) of this Section,
15notwithstanding any other provisions of this Act and without
16obtaining any approvals from the Commission or any other
17agency other than as set forth in this Section, regardless of
18whether any such approval would otherwise be required.
19"Combination utility" means a utility that, as of January 1,
202011, provided electric service to at least one million retail
21customers in Illinois and gas service to at least 500,000
22retail customers in Illinois. A participating utility shall
23recover the expenditures made under the infrastructure
24investment program through the ratemaking process, including,
25but not limited to, the performance-based formula rate and

 

 

HB0804 Engrossed- 754 -LRB102 10881 SPS 16211 b

1process set forth in this Section.
2    During the infrastructure investment program's peak
3program year, a participating utility other than a combination
4utility shall create 2,000 full-time equivalent jobs in
5Illinois, and a participating utility that is a combination
6utility shall create 450 full-time equivalent jobs in Illinois
7related to the provision of electric service. These jobs shall
8include direct jobs, contractor positions, and induced jobs,
9but shall not include any portion of a job commitment, not
10specifically contingent on an amendatory Act of the 97th
11General Assembly becoming law, between a participating utility
12and a labor union that existed on December 30, 2011 (the
13effective date of Public Act 97-646) and that has not yet been
14fulfilled. A portion of the full-time equivalent jobs created
15by each participating utility shall include incremental
16personnel hired subsequent to December 30, 2011 (the effective
17date of Public Act 97-646). For purposes of this Section,
18"peak program year" means the consecutive 12-month period with
19the highest number of full-time equivalent jobs that occurs
20between the beginning of investment year 2 and the end of
21investment year 4.
22    A participating utility shall meet one of the following
23commitments, 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

 

 

HB0804 Engrossed- 755 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 756 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 757 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 758 -LRB102 10881 SPS 16211 b

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
25upgrades" shall have the meaning set forth in subsection (a)
26of Section 16-108.6 of this Act.

 

 

HB0804 Engrossed- 759 -LRB102 10881 SPS 16211 b

1    The investments in the infrastructure investment program
2described in this subsection (b) shall be incremental to the
3participating utility's annual capital investment program, as
4defined by, for purposes of this subsection (b), the
5participating utility's average capital spend for calendar
6years 2008, 2009, and 2010 as reported in the applicable
7Federal Energy Regulatory Commission (FERC) Form 1; provided
8that where one or more utilities have merged, the average
9capital spend shall be determined using the aggregate of the
10merged utilities' capital spend reported in FERC Form 1 for
11the years 2008, 2009, and 2010. A participating utility may
12add reasonable construction ramp-up and ramp-down time to the
13investment periods specified in this subsection (b). For each
14such investment period, the ramp-up and ramp-down time shall
15not exceed a total of 6 months.
16    Within 60 days after filing a tariff under subsection (c)
17of this Section, a participating utility shall submit to the
18Commission its plan, including scope, schedule, and staffing,
19for satisfying its infrastructure investment program
20commitments pursuant to this subsection (b). The submitted
21plan shall include a schedule and staffing plan for the next
22calendar year. The plan shall also include a plan for the
23creation, operation, and administration of a Smart Grid test
24bed as described in subsection (c) of Section 16-108.8. The
25plan need not allocate the work equally over the respective
26periods, but should allocate material increments throughout

 

 

HB0804 Engrossed- 760 -LRB102 10881 SPS 16211 b

1such periods commensurate with the work to be undertaken. No
2later than April 1 of each subsequent year, the utility shall
3submit to the Commission a report that includes any updates to
4the plan, a schedule for the next calendar year, the
5expenditures made for the prior calendar year and
6cumulatively, and the number of full-time equivalent jobs
7created for the prior calendar year and cumulatively. If the
8utility is materially deficient in satisfying a schedule or
9staffing plan, then the report must also include a corrective
10action plan to address the deficiency. The fact that the plan,
11implementation of the plan, or a schedule changes shall not
12imply the imprudence or unreasonableness of the infrastructure
13investment program, plan, or schedule. Further, no later than
1445 days following the last day of the first, second, and third
15quarters of each year of the plan, a participating utility
16shall submit to the Commission a verified quarterly report for
17the prior quarter that includes (i) the total number of
18full-time equivalent jobs created during the prior quarter,
19(ii) the total number of employees as of the last day of the
20prior quarter, (iii) the total number of full-time equivalent
21hours in each job classification or job title, (iv) the total
22number of incremental employees and contractors in support of
23the investments undertaken pursuant to this subsection (b) for
24the prior quarter, and (v) any other information that the
25Commission may require by rule.
26    With respect to the participating utility's peak job

 

 

HB0804 Engrossed- 761 -LRB102 10881 SPS 16211 b

1commitment, if, after considering the utility's corrective
2action plan and compliance thereunder, the Commission enters
3an order finding, after notice and hearing, that a
4participating utility did not satisfy its peak job commitment
5described in this subsection (b) for reasons that are
6reasonably within its control, then the Commission shall also
7determine, after consideration of the evidence, including, but
8not limited to, evidence submitted by the Department of
9Commerce and Economic Opportunity and the utility, the
10deficiency in the number of full-time equivalent jobs during
11the peak program year due to such failure. The Commission
12shall notify the Department of any proceeding that is
13initiated pursuant to this paragraph. For each full-time
14equivalent job deficiency during the peak program year that
15the Commission finds as set forth in this paragraph, the
16participating utility shall, within 30 days after the entry of
17the Commission's order, pay $6,000 to a fund for training
18grants administered under Section 605-800 of the Department of
19Commerce and Economic Opportunity Law, which shall not be a
20recoverable expense.
21    With respect to the participating utility's investment
22amount commitments, if, after considering the utility's
23corrective action plan and compliance thereunder, the
24Commission enters an order finding, after notice and hearing,
25that a participating utility is not satisfying its investment
26amount commitments described in this subsection (b), then the

 

 

HB0804 Engrossed- 762 -LRB102 10881 SPS 16211 b

1utility shall no longer be eligible to annually update the
2performance-based formula rate tariff pursuant to subsection
3(d) of this Section. In such event, the then current rates
4shall remain in effect until such time as new rates are set
5pursuant to Article IX of this Act, subject to retroactive
6adjustment, with interest, to reconcile rates charged with
7actual costs.
8    If the Commission finds that a participating utility is no
9longer eligible to update the performance-based formula rate
10tariff pursuant to subsection (d) of this Section, or the
11performance-based formula rate is otherwise terminated, then
12the participating utility's voluntary commitments and
13obligations under this subsection (b) shall immediately
14terminate, except for the utility's obligation to pay an
15amount already owed to the fund for training grants pursuant
16to a Commission order.
17    In meeting the obligations of this subsection (b), to the
18extent feasible and consistent with State and federal law, the
19investments under the infrastructure investment program should
20provide employment opportunities for all segments of the
21population and workforce, including black, indigenous, and
22people of color-owned and women-owned minority-owned and
23female-owned business enterprises, and shall not, consistent
24with State and federal law, discriminate based on race or
25socioeconomic status.
26    (b-5) Nothing in this Section shall prohibit the

 

 

HB0804 Engrossed- 763 -LRB102 10881 SPS 16211 b

1Commission from investigating the prudence and reasonableness
2of the expenditures made under the infrastructure investment
3program during the annual review required by subsection (d) of
4this Section and shall, as part of such investigation,
5determine whether the utility's actual costs under the program
6are prudent and reasonable. The fact that a participating
7utility invests more than the minimum amounts specified in
8subsection (b) of this Section or its plan shall not imply
9imprudence or unreasonableness.
10    If the participating utility finds that it is implementing
11its plan for satisfying the infrastructure investment program
12commitments described in subsection (b) of this Section at a
13cost below the estimated amounts specified in subsection (b)
14of this Section, then the utility may file a petition with the
15Commission requesting that it be permitted to satisfy its
16commitments by spending less than the estimated amounts
17specified in subsection (b) of this Section. The Commission
18shall, after notice and hearing, enter its order approving, or
19approving as modified, or denying each such petition within
20150 days after the filing of the petition.
21    In no event, absent General Assembly approval, shall the
22capital investment costs incurred by a participating utility
23other than a combination utility in satisfying its
24infrastructure investment program commitments described in
25subsection (b) of this Section exceed $3,000,000,000 or, for a
26participating utility that is a combination utility,

 

 

HB0804 Engrossed- 764 -LRB102 10881 SPS 16211 b

1$720,000,000. If the participating utility's updated cost
2estimates for satisfying its infrastructure investment program
3commitments described in subsection (b) of this Section exceed
4the limitation imposed by this subsection (b-5), then it shall
5submit a report to the Commission that identifies the
6increased costs and explains the reason or reasons for the
7increased costs no later than the year in which the utility
8estimates it will exceed the limitation. The Commission shall
9review the report and shall, within 90 days after the
10participating utility files the report, report to the General
11Assembly its findings regarding the participating utility's
12report. If the General Assembly does not amend the limitation
13imposed by this subsection (b-5), then the utility may modify
14its plan so as not to exceed the limitation imposed by this
15subsection (b-5) and may propose corresponding changes to the
16metrics established pursuant to subparagraphs (5) through (8)
17of subsection (f) of this Section, and the Commission may
18modify the metrics and incremental savings goals established
19pursuant to subsection (f) of this Section accordingly.
20    (b-10) All participating utilities shall make
21contributions for an energy low-income and support program in
22accordance with this subsection. Beginning no later than 180
23days after a participating utility files a performance-based
24formula rate tariff pursuant to subsection (c) of this
25Section, or beginning no later than January 1, 2012 if such
26utility files such performance-based formula rate tariff

 

 

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1within 14 days of December 30, 2011 (the effective date of
2Public Act 97-646), and without obtaining any approvals from
3the Commission or any other agency other than as set forth in
4this Section, regardless of whether any such approval would
5otherwise be required, a participating utility other than a
6combination utility shall pay $10,000,000 per year for 5 years
7and a participating utility that is a combination utility
8shall pay $1,000,000 per year for 10 years to the energy
9low-income and support program, which is intended to fund
10customer assistance programs with the primary purpose being
11avoidance of imminent disconnection. Such programs may
12include:
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

 

 

HB0804 Engrossed- 766 -LRB102 10881 SPS 16211 b

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
14this subsection (b-10) shall not be a recoverable expense. A
15participating utility may elect to fund either new or existing
16customer assistance programs, including, but not limited to,
17those that are administered by the utility.
18    Programs that use funds that are provided by a
19participating utility to reduce utility bills may be
20implemented through tariffs that are filed with and reviewed
21by the Commission. If a utility elects to file tariffs with the
22Commission to implement all or a portion of the programs,
23those tariffs shall, regardless of the date actually filed, be
24deemed accepted and approved, and shall become effective on
25December 30, 2011 (the effective date of Public Act 97-646).
26The participating utilities whose customers benefit from the

 

 

HB0804 Engrossed- 767 -LRB102 10881 SPS 16211 b

1funds that are disbursed as contemplated in this Section shall
2file annual reports documenting the disbursement of those
3funds with the Commission. The Commission has the authority to
4audit disbursement of the funds to ensure they were disbursed
5consistently with this Section.
6    If the Commission finds that a participating utility is no
7longer eligible to update the performance-based formula rate
8tariff pursuant to subsection (d) of this Section, or the
9performance-based formula rate is otherwise terminated, then
10the participating utility's voluntary commitments and
11obligations under this subsection (b-10) shall immediately
12terminate.
13    (c) A participating utility may elect to recover its
14delivery services costs through a performance-based formula
15rate approved by the Commission, which shall specify the cost
16components that form the basis of the rate charged to
17customers with sufficient specificity to operate in a
18standardized manner and be updated annually with transparent
19information that reflects the utility's actual costs to be
20recovered during the applicable rate year, which is the period
21beginning with the first billing day of January and extending
22through the last billing day of the following December. In the
23event the utility recovers a portion of its costs through
24automatic adjustment clause tariffs on October 26, 2011 (the
25effective date of Public Act 97-616), the utility may elect to
26continue to recover these costs through such tariffs, but then

 

 

HB0804 Engrossed- 768 -LRB102 10881 SPS 16211 b

1these costs shall not be recovered through the
2performance-based formula rate. In the event the participating
3utility, prior to December 30, 2011 (the effective date of
4Public Act 97-646), filed electric delivery services tariffs
5with the Commission pursuant to Section 9-201 of this Act that
6are related to the recovery of its electric delivery services
7costs that are still pending on December 30, 2011 (the
8effective date of Public Act 97-646), the participating
9utility shall, at the time it files its performance-based
10formula rate tariff with the Commission, also file a notice of
11withdrawal with the Commission to withdraw the electric
12delivery services tariffs previously filed pursuant to Section
139-201 of this Act. Upon receipt of such notice, the Commission
14shall dismiss with prejudice any docket that had been
15initiated to investigate the electric delivery services
16tariffs filed pursuant to Section 9-201 of this Act, and such
17tariffs and the record related thereto shall not be the
18subject of any further hearing, investigation, or proceeding
19of any kind related to rates for electric delivery services.
20    The performance-based formula rate shall be implemented
21through a tariff filed with the Commission consistent with the
22provisions of this subsection (c) that shall be applicable to
23all delivery services customers. The Commission shall initiate
24and conduct an investigation of the tariff in a manner
25consistent with the provisions of this subsection (c) and the
26provisions of Article IX of this Act to the extent they do not

 

 

HB0804 Engrossed- 769 -LRB102 10881 SPS 16211 b

1conflict with this subsection (c). Except in the case where
2the Commission finds, after notice and hearing, that a
3participating utility is not satisfying its investment amount
4commitments under subsection (b) of this Section, the
5performance-based formula rate shall remain in effect at the
6discretion of the utility. The performance-based formula rate
7approved 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

 

 

HB0804 Engrossed- 770 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 771 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 772 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 773 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 774 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 775 -LRB102 10881 SPS 16211 b

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
13data based on its most recently filed FERC Form 1, plus
14projected plant additions and correspondingly updated
15depreciation reserve and expense for the calendar year in
16which the tariff and data are filed, that shall populate the
17performance-based formula rate and set the initial delivery
18services rates under the formula. For purposes of this
19Section, "FERC Form 1" means the Annual Report of Major
20Electric Utilities, Licensees and Others that electric
21utilities are required to file with the Federal Energy
22Regulatory Commission under the Federal Power Act, Sections 3,
234(a), 304 and 209, modified as necessary to be consistent with
2483 Ill. Admin. Code Part 415 as of May 1, 2011. Nothing in this
25Section is intended to allow costs that are not otherwise
26recoverable to be recoverable by virtue of inclusion in FERC

 

 

HB0804 Engrossed- 776 -LRB102 10881 SPS 16211 b

1Form 1.
2    After the utility files its proposed performance-based
3formula rate structure and protocols and initial rates, the
4Commission shall initiate a docket to review the filing. The
5Commission shall enter an order approving, or approving as
6modified, the performance-based formula rate, including the
7initial rates, as just and reasonable within 270 days after
8the date on which the tariff was filed, or, if the tariff is
9filed within 14 days after October 26, 2011 (the effective
10date of Public Act 97-616), then by May 31, 2012. Such review
11shall be based on the same evidentiary standards, including,
12but not limited to, those concerning the prudence and
13reasonableness of the costs incurred by the utility, the
14Commission applies in a hearing to review a filing for a
15general increase in rates under Article IX of this Act. The
16initial rates shall take effect within 30 days after the
17Commission's order approving the performance-based formula
18rate tariff.
19    Until such time as the Commission approves a different
20rate design and cost allocation pursuant to subsection (e) of
21this Section, rate design and cost allocation across customer
22classes shall be consistent with the Commission's most recent
23order regarding the participating utility's request for a
24general increase in its delivery services rates.
25    Subsequent changes to the performance-based formula rate
26structure or protocols shall be made as set forth in Section

 

 

HB0804 Engrossed- 777 -LRB102 10881 SPS 16211 b

19-201 of this Act, but nothing in this subsection (c) is
2intended to limit the Commission's authority under Article IX
3and other provisions of this Act to initiate an investigation
4of a participating utility's performance-based formula rate
5tariff, provided that any such changes shall be consistent
6with paragraphs (1) through (6) of this subsection (c). Any
7change ordered by the Commission shall be made at the same time
8new rates take effect following the Commission's next order
9pursuant to subsection (d) of this Section, provided that the
10new rates take effect no less than 30 days after the date on
11which the Commission issues an order adopting the change.
12    A participating utility that files a tariff pursuant to
13this subsection (c) must submit a one-time $200,000 filing fee
14at the time the Chief Clerk of the Commission accepts the
15filing, which shall be a recoverable expense.
16    In the event the performance-based formula rate is
17terminated, the then current rates shall remain in effect
18until such time as new rates are set pursuant to Article IX of
19this Act, subject to retroactive rate adjustment, with
20interest, to reconcile rates charged with actual costs. At
21such time that the performance-based formula rate is
22terminated, the participating utility's voluntary commitments
23and obligations under subsection (b) of this Section shall
24immediately terminate, except for the utility's obligation to
25pay an amount already owed to the fund for training grants
26pursuant to a Commission order issued under subsection (b) of

 

 

HB0804 Engrossed- 778 -LRB102 10881 SPS 16211 b

1this Section.
2    (d) Subsequent to the Commission's issuance of an order
3approving the utility's performance-based formula rate
4structure and protocols, and initial rates under subsection
5(c) of this Section, the utility shall file, on or before May 1
6of each year, with the Chief Clerk of the Commission its
7updated cost inputs to the performance-based formula rate for
8the applicable rate year and the corresponding new charges.
9Each such filing shall conform to the following requirements
10and 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

 

 

HB0804 Engrossed- 779 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 780 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 781 -LRB102 10881 SPS 16211 b

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
9of cost inputs to the performance-based formula rate, the
10Commission shall have the authority, either upon complaint or
11its own initiative, but with reasonable notice, to enter upon
12a hearing concerning the prudence and reasonableness of the
13costs incurred by the utility to be recovered during the
14applicable rate year that are reflected in the inputs to the
15performance-based formula rate derived from the utility's FERC
16Form 1. During the course of the hearing, each objection shall
17be stated with particularity and evidence provided in support
18thereof, after which the utility shall have the opportunity to
19rebut the evidence. Discovery shall be allowed consistent with
20the Commission's Rules of Practice, which Rules shall be
21enforced by the Commission or the assigned administrative law
22judge. The Commission shall apply the same evidentiary
23standards, including, but not limited to, those concerning the
24prudence and reasonableness of the costs incurred by the
25utility, in the hearing as it would apply in a hearing to
26review a filing for a general increase in rates under Article

 

 

HB0804 Engrossed- 782 -LRB102 10881 SPS 16211 b

1IX of this Act. The Commission shall not, however, have the
2authority in a proceeding under this subsection (d) to
3consider or order any changes to the structure or protocols of
4the performance-based formula rate approved pursuant to
5subsection (c) of this Section. In a proceeding under this
6subsection (d), the Commission shall enter its order no later
7than the earlier of 240 days after the utility's filing of its
8annual update of cost inputs to the performance-based formula
9rate or December 31. The Commission's determinations of the
10prudence and reasonableness of the costs incurred for the
11applicable calendar year shall be final upon entry of the
12Commission's order and shall not be subject to reopening,
13reexamination, or collateral attack in any other Commission
14proceeding, case, docket, order, rule or regulation, provided,
15however, that nothing in this subsection (d) shall prohibit a
16party from petitioning the Commission to rehear or appeal to
17the courts the order pursuant to the provisions of this Act.
18    In the event the Commission does not, either upon
19complaint or its own initiative, enter upon a hearing within
2045 days after the utility files the annual update of cost
21inputs to its performance-based formula rate, then the costs
22incurred for the applicable calendar year shall be deemed
23prudent and reasonable, and the filed charges shall not be
24subject to reopening, reexamination, or collateral attack in
25any other proceeding, case, docket, order, rule, or
26regulation.

 

 

HB0804 Engrossed- 783 -LRB102 10881 SPS 16211 b

1    A participating utility's first filing of the updated cost
2inputs, and any Commission investigation of such inputs
3pursuant to this subsection (d) shall proceed notwithstanding
4the fact that the Commission's investigation under subsection
5(c) of this Section is still pending and notwithstanding any
6other law, order, rule, or Commission practice to the
7contrary.
8    (e) Nothing in subsections (c) or (d) of this Section
9shall prohibit the Commission from investigating, or a
10participating utility from filing, revenue-neutral tariff
11changes related to rate design of a performance-based formula
12rate that has been placed into effect for the utility.
13Following approval of a participating utility's
14performance-based formula rate tariff pursuant to subsection
15(c) of this Section, the utility shall make a filing with the
16Commission within one year after the effective date of the
17performance-based formula rate tariff that proposes changes to
18the tariff to incorporate the findings of any final rate
19design orders of the Commission applicable to the
20participating utility and entered subsequent to the
21Commission's approval of the tariff. The Commission shall,
22after notice and hearing, enter its order approving, or
23approving with modification, the proposed changes to the
24performance-based formula rate tariff within 240 days after
25the utility's filing. Following such approval, the utility
26shall make a filing with the Commission during each subsequent

 

 

HB0804 Engrossed- 784 -LRB102 10881 SPS 16211 b

13-year period that either proposes revenue-neutral tariff
2changes or re-files the existing tariffs without change, which
3shall present the Commission with an opportunity to suspend
4the tariffs and consider revenue-neutral tariff changes
5related to rate design.
6    (f) Within 30 days after the filing of a tariff pursuant to
7subsection (c) of this Section, each participating utility
8shall develop and file with the Commission multi-year metrics
9designed to achieve, ratably (i.e., in equal segments) over a
1010-year period, improvement over baseline performance values
11as 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

 

 

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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

 

 

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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
23411.20 as of May 1, 2011 shall be used for purposes of
24calculating performance under paragraphs (1) through (3.5) of
25this subsection (f), provided, however, that the participating
26utility may exclude up to 9 extreme weather event days from

 

 

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1such calculation for each year, and provided further that the
2participating utility shall exclude 9 extreme weather event
3days when calculating each year of the baseline period to the
4extent that there are 9 such days in a given year of the
5baseline period. For purposes of this Section, an extreme
6weather event day is a 24-hour calendar day (beginning at
712:00 a.m. and ending at 11:59 p.m.) during which any weather
8event (e.g., storm, tornado) caused interruptions for 10,000
9or more of the participating utility's customers for 3 hours
10or more. If there are more than 9 extreme weather event days in
11a year, then the utility may choose no more than 9 extreme
12weather event days to exclude, provided that the same extreme
13weather event days are excluded from each of the calculations
14performed under paragraphs (1) through (3.5) of this
15subsection (f).
16    The metrics shall include incremental performance goals
17for each year of the 10-year period, which shall be designed to
18demonstrate that the utility is on track to achieve the
19performance goal in each category at the end of the 10-year
20period. The utility shall elect when the 10-year period shall
21commence for the metrics set forth in subparagraphs (1)
22through (4) and (9) of this subsection (f), provided that it
23begins no later than 14 months following the date on which the
24utility begins investing pursuant to subsection (b) of this
25Section, and when the 10-year period shall commence for the
26metrics set forth in subparagraphs (5) through (8) of this

 

 

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1subsection (f), provided that it begins no later than 14
2months following the date on which the Commission enters its
3order approving the utility's Advanced Metering Infrastructure
4Deployment Plan pursuant to subsection (c) of Section 16-108.6
5of this Act.
6    The metrics and performance goals set forth in
7subparagraphs (5) through (8) of this subsection (f) are based
8on the assumptions that the participating utility may fully
9implement the technology described in subsection (b) of this
10Section, including utilizing the full functionality of such
11technology and that there is no requirement for personal
12on-site notification. If the utility is unable to meet the
13metrics and performance goals set forth in subparagraphs (5)
14through (8) of this subsection (f) for such reasons, and the
15Commission so finds after notice and hearing, then the utility
16shall be excused from compliance, but only to the limited
17extent achievement of the affected metrics and performance
18goals was hindered by the less than full implementation.
19    (f-5) The financial penalties applicable to the metrics
20described in subparagraphs (1) through (8) of subsection (f)
21of this Section, as applicable, shall be applied through an
22adjustment to the participating utility's return on equity of
23no more than a total of 30 basis points in each of the first 3
24years, of no more than a total of 34 basis points in each of
25the 3 years thereafter, and of no more than a total of 38 basis
26points in each of the 4 years thereafter, as follows:

 

 

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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

 

 

HB0804 Engrossed- 790 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 791 -LRB102 10881 SPS 16211 b

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
14this subsection (f-5) for the 12-month period in which the
15deficiency occurred through a separate tariff mechanism, which
16shall be filed by the utility together with its metrics. In the
17event the formula rate tariff established pursuant to
18subsection (c) of this Section terminates, the utility's
19obligations under subsection (f) of this Section and this
20subsection (f-5) shall also terminate, provided, however, that
21the tariff mechanism established pursuant to subsection (f) of
22this Section and this subsection (f-5) shall remain in effect
23until any penalties due and owing at the time of such
24termination are applied.
25    The Commission shall, after notice and hearing, enter an
26order within 120 days after the metrics are filed approving,

 

 

HB0804 Engrossed- 792 -LRB102 10881 SPS 16211 b

1or approving with modification, a participating utility's
2tariff or mechanism to satisfy the metrics set forth in
3subsection (f) of this Section. On June 1 of each subsequent
4year, each participating utility shall file a report with the
5Commission that includes, among other things, a description of
6how the participating utility performed under each metric and
7an identification of any extraordinary events that adversely
8impacted the utility's performance. Whenever a participating
9utility does not satisfy the metrics required pursuant to
10subsection (f) of this Section, the Commission shall, after
11notice and hearing, enter an order approving financial
12penalties in accordance with this subsection (f-5). The
13Commission-approved financial penalties shall be applied
14beginning with the next rate year. Nothing in this Section
15shall authorize the Commission to reduce or otherwise obviate
16the imposition of financial penalties for failing to achieve
17one or more of the metrics established pursuant to
18subparagraph (1) through (4) of subsection (f) of this
19Section.
20    (g) On or before July 31, 2014, each participating utility
21shall file a report with the Commission that sets forth the
22average annual increase in the average amount paid per
23kilowatthour for residential eligible retail customers,
24exclusive of the effects of energy efficiency programs,
25comparing the 12-month period ending May 31, 2012; the
2612-month period ending May 31, 2013; and the 12-month period

 

 

HB0804 Engrossed- 793 -LRB102 10881 SPS 16211 b

1ending May 31, 2014. For a participating utility that is a
2combination utility with more than one rate zone, the weighted
3average aggregate increase shall be provided. The report shall
4be filed together with a statement from an independent auditor
5attesting to the accuracy of the report. The cost of the
6independent auditor shall be borne by the participating
7utility and shall not be a recoverable expense. "The average
8amount paid per kilowatthour" shall be based on the
9participating utility's tariffed rates actually in effect and
10shall not be calculated using any hypothetical rate or
11adjustments to actual charges (other than as specified for
12energy efficiency) as an input.
13    In the event that the average annual increase exceeds 2.5%
14as calculated pursuant to this subsection (g), then Sections
1516-108.5, 16-108.6, 16-108.7, and 16-108.8 of this Act, other
16than this subsection, shall be inoperative as they relate to
17the utility and its service area as of the date of the report
18due to be submitted pursuant to this subsection and the
19utility shall no longer be eligible to annually update the
20performance-based formula rate tariff pursuant to subsection
21(d) of this Section. In such event, the then current rates
22shall remain in effect until such time as new rates are set
23pursuant to Article IX of this Act, subject to retroactive
24adjustment, with interest, to reconcile rates charged with
25actual costs, and the participating utility's voluntary
26commitments and obligations under subsection (b) of this

 

 

HB0804 Engrossed- 794 -LRB102 10881 SPS 16211 b

1Section shall immediately terminate, except for the utility's
2obligation to pay an amount already owed to the fund for
3training grants pursuant to a Commission order issued under
4subsection (b) of this Section.
5    In the event that the average annual increase is 2.5% or
6less as calculated pursuant to this subsection (g), then the
7performance-based formula rate shall remain in effect as set
8forth in this Section.
9    For purposes of this Section, the amount per kilowatthour
10means the total amount paid for electric service expressed on
11a per kilowatthour basis, and the total amount paid for
12electric service includes without limitation amounts paid for
13supply, transmission, distribution, surcharges, and add-on
14taxes exclusive of any increases in taxes or new taxes imposed
15after October 26, 2011 (the effective date of Public Act
1697-616). For purposes of this Section, "eligible retail
17customers" shall have the meaning set forth in Section
1816-111.5 of this Act.
19    The fact that this Section becomes inoperative as set
20forth in this subsection shall not be construed to mean that
21the Commission may reexamine or otherwise reopen prudence or
22reasonableness determinations already made.
23    (h) By December 31, 2017, the Commission shall prepare and
24file with the General Assembly a report on the infrastructure
25program and the performance-based formula rate. The report
26shall include the change in the average amount per

 

 

HB0804 Engrossed- 795 -LRB102 10881 SPS 16211 b

1kilowatthour paid by residential customers between June 1,
22011 and May 31, 2017. If the change in the total average rate
3paid exceeds 2.5% compounded annually, the Commission shall
4include in the report an analysis that shows the portion of the
5change due to the delivery services component and the portion
6of the change due to the supply component of the rate. The
7report shall include separate sections for each participating
8utility.
9    Sections 16-108.5, 16-108.6, 16-108.7, and 16-108.8 of
10this Act, other than this subsection (h), are inoperative
11after December 31, 2021 2022 for every participating utility
12(except for subsection (g) of Section 16-108.6, which is
13inoperative after December 31, 2022), after which time a
14participating utility shall no longer be eligible to annually
15update the performance-based formula rate tariff pursuant to
16subsection (d) of this Section. At such time, the then current
17rates shall remain in effect until such time as new rates are
18set pursuant to Article IX of this Act, subject to retroactive
19adjustment, with interest, to reconcile rates charged with
20actual costs.
21    The fact that this Section becomes inoperative as set
22forth in this subsection shall not be construed to mean that
23the Commission may reexamine or otherwise reopen prudence or
24reasonableness determinations already made.
25    (i) While a participating utility may use, develop, and
26maintain broadband systems and the delivery of broadband

 

 

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1services, voice-over-internet-protocol services,
2telecommunications services, and cable and video programming
3services for use in providing delivery services and Smart Grid
4functionality or application to its retail customers,
5including, but not limited to, the installation,
6implementation and maintenance of Smart Grid electric system
7upgrades as defined in Section 16-108.6 of this Act, a
8participating utility is prohibited from offering to its
9retail customers broadband services or the delivery of
10broadband services, voice-over-internet-protocol services,
11telecommunications services, or cable or video programming
12services, unless they are part of a service directly related
13to delivery services or Smart Grid functionality or
14applications as defined in Section 16-108.6 of this Act, and
15from recovering the costs of such offerings from retail
16customers.
17    (j) Nothing in this Section is intended to legislatively
18overturn the opinion issued in Commonwealth Edison Co. v. Ill.
19Commerce Comm'n, Nos. 2-08-0959, 2-08-1037, 2-08-1137,
201-08-3008, 1-08-3030, 1-08-3054, 1-08-3313 cons. (Ill. App.
21Ct. 2d Dist. Sept. 30, 2010). Public Act 97-616 shall not be
22construed as creating a contract between the General Assembly
23and the participating utility, and shall not establish a
24property right in the participating utility.
25    (k) The changes made in subsections (c) and (d) of this
26Section by Public Act 98-15 are intended to be a restatement

 

 

HB0804 Engrossed- 797 -LRB102 10881 SPS 16211 b

1and clarification of existing law, and intended to give
2binding effect to the provisions of House Resolution 1157
3adopted by the House of Representatives of the 97th General
4Assembly and Senate Resolution 821 adopted by the Senate of
5the 97th General Assembly that are reflected in paragraph (3)
6of this subsection. In addition, Public Act 98-15 preempts and
7supersedes any final Commission orders entered in Docket Nos.
811-0721, 12-0001, 12-0293, and 12-0321 to the extent
9inconsistent 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

 

 

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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,

 

 

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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
5been in full compliance with all requirements of subsection
6(b) of this Section, subsection (c) of this Section, Section
716-108.6 of this Act, and all Commission orders entered
8pursuant to Sections 16-108.5 and 16-108.6 of this Act, up to
9and including May 22, 2013 (the effective date of Public Act
1098-15). The Commission shall not undertake any investigation
11of such compliance and no penalty shall be assessed or adverse
12action taken against a participating utility for noncompliance
13with Commission orders associated with subsection (b) of this
14Section, subsection (c) of this Section, and Section 16-108.6
15of this Act prior to such date. Each participating utility
16other than a combination utility shall be permitted, without
17penalty, a period of 12 months after such effective date to
18take actions required to ensure its infrastructure investment
19program is in compliance with subsection (b) of this Section
20and with Section 16-108.6 of this Act. Provided further, the
21following subparagraphs shall apply to a participating utility
22other 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

 

 

HB0804 Engrossed- 800 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 801 -LRB102 10881 SPS 16211 b

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
7Commission pursuant to this subsection (l) shall take into
8consideration procurement times for meters and other equipment
9and operational issues. Nothing in Public Act 98-15 shall
10shorten or extend the end dates for the 5-year or 10-year
11periods set forth in subsection (b) of this Section or Section
1216-108.6 of this Act. Nothing in this subsection is intended
13to address whether a participating utility has, or has not,
14satisfied any or all of the metrics and performance goals
15established pursuant to subsection (f) of this Section.
16    (m) The provisions of Public Act 98-15 are severable under
17Section 1.31 of the Statute on Statutes.
18(Source: P.A. 99-143, eff. 7-27-15; 99-642, eff. 7-28-16;
1999-906, 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
22projects.
23    (a) The General Assembly finds that it is important to
24support the rapid transition in the energy sector to put
25Illinois on a path to 100% renewable energy. This will require

 

 

HB0804 Engrossed- 802 -LRB102 10881 SPS 16211 b

1leveraging new technologies and solutions to support grid
2reliability to address issues such as the shift from large,
3centralized, fossil generation to wind, solar, and distributed
4energy resources. To that end, the General Assembly sees the
5need for developing pilot projects in Clean Energy Empowerment
6Zones that enhance reliability while facilitating the
7transition toward clean energy.
8    (b) An electric utility serving more than 100,000 retail
9customers may propose one or more Clean Energy Empowerment
10Zone pilot projects to the Illinois Commerce Commission to
11conduct a competitive procurement for independently owned
12energy storage systems to be located in Clean Energy
13Empowerment Zones. The Commission shall evaluate the projects
14based on their ability to address present and future
15reliability needs identified by the Midcontinent Independent
16System Operator, PJM Interconnection, electric utilities, or
17independent analysts. In addition to supporting reliability, a
18qualifying project must support the transition toward or
19development of clean energy.
20    (c) The Clean Energy Empowerment Zones described in this
21Section shall be the same as defined by the Department of
22Commerce and Economic Opportunity in the Energy Community
23Reinvestment Act.
24    (d) The Clean Energy Empowerment Zone pilot projects shall
25closely coordinate with actual and expected development of new
26wind projects and new solar projects as described in Section

 

 

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11-75 of the Illinois Power Agency Act, electric vehicle
2adoption, and Community Energy, Climate, and Jobs Plans as
3defined in the Community Energy, Climate, and Jobs Planning
4Act.
5    (e) Upon approval of a Clean Energy Empowerment Zone pilot
6project by the Illinois Commerce Commission, an electric
7utility is authorized to enter into a distribution services
8contract with new energy storage system projects in accordance
9with the approved project. Nothing in this Section or in the
10distribution services contract shall preclude the energy
11storage project from providing additional wholesale market
12services.
13    (f) An electric utility that elects to undertake the
14investment described in subsection (b) of this Section may, at
15its election, recover the costs of such investment through an
16automatic adjustment clause tariff or through a delivery
17services charge regardless of how the costs are classified on
18the utility's books and records of account.
19    (g) To the extent feasible and consistent with State and
20federal law, the investments made pursuant to this Section
21shall provide employment opportunities for former workers in
22fossil fuel industries and participants in the Clean Jobs
23Workforce Hubs as defined in the Clean Jobs, Workforce and
24Contractor Equity Act.
25    (h) Nothing in this Section is intended to limit the
26ability of any other entity to develop, construct, or install

 

 

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1an energy storage system. In addition, nothing in this Section
2is intended to limit or alter otherwise applicable
3interconnection 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
7improving the alignment of utility customer and company
8interests is critical to ensuring that Illinois residents and
9businesses have the opportunity to optimize existing utility
10infrastructure and do not suffer economic and environmental
11harm from the State's energy systems. This realignment is
12critical to ensure the ongoing viability of Illinois electric
13utilities, as they face an increasing need to rapidly adopt
14business models and strategies that enable new innovations and
15customer choices. Furthermore, the General Assembly finds that
16this realignment has entered a period of extraordinary
17urgency, given the expected rapid growth of distributed energy
18resources, electric vehicles, and other new technologies that
19substantially change the makeup of the grid. Moreover, urgency
20of action to address increasing threats from climate change
21and to assist communities that have borne a disproportionate
22impact from air pollution, greenhouse gas emissions, and
23energy burdens requires immediate and significant change to
24the business model under which utilities in Illinois have
25functioned. Providing incentive for necessary changes through

 

 

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1a new holistic, performance-based structure for ratemaking
2will enable alignment of utility, customer, community and
3environmental goals. In particular, the General Assembly finds
4that:
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:

 

 

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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
25electricity demand or shift demand from peak to off-peak
26periods.

 

 

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1    "Distributed energy resources" or "DER" means a wide range
2of technologies that are located on the customer side of the
3customer's electric meter and can provide value to the
4distribution system, including, but not limited to,
5distributed generation, energy storage, electric vehicles, and
6demand response technologies.
7    "Economically disadvantaged communities" means areas of
8one or more census tracts where average household income does
9not exceed 80% of area median income.
10    "Environmental justice communities" means the definition
11of that term based on existing methodologies and findings,
12used and as may be updated by the Illinois Power Agency and its
13Program Administrator in the Illinois Solar for All Program.
14    "Performance-based regulation or ratemaking" or "PBR"
15means a regulatory approach that aligns utility interests with
16customer and societal interests through regulatory mechanisms
17that motivate utilities to improve operations, increase
18program effectiveness, better manage business expenses, and
19align system performance with identified societal or policy
20goals.
21    (c) Objectives. The comprehensive PBR framework should be
22designed 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;

 

 

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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
24of PBR mechanisms that collectively accomplish the objectives
25set forth in subsection (c). Those mechanisms may include, but
26are not limited to:

 

 

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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

 

 

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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.

 

 

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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

 

 

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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

 

 

HB0804 Engrossed- 813 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 815 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 816 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 817 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 819 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 820 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 821 -LRB102 10881 SPS 16211 b

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,

 

 

HB0804 Engrossed- 822 -LRB102 10881 SPS 16211 b

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
94-month workshop process no later than March 1, 2022 for the
10purpose of informing the enactment of metrics. The workshop
11shall be facilitated by Staff of the Illinois Commerce
12Commission, and shall be organized and facilitated in a manner
13that encourages representation from diverse stakeholders,
14ensuring equitable opportunities for participation, without
15requiring formal intervention or representation by an
16attorney. Following the workshop, the Commission shall
17establish initial tracking and performance metrics in a
18docketed proceeding that shall be filed by the electric
19utility by July 2, 2022. The initial tracking and performance
20metrics shall be in place for the period of the first
21Multi-Year Rate Plan. The proceeding shall conclude, and the
22commission shall issue an order in the matter, no later than
23April 1, 2023.
24    Unless the tracking metrics in subparagraph (3) of
25paragraph (A) and performance metrics in subparagraph (3) of
26paragraph (B) of subsection (f) of this Section are found by

 

 

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1the Commission during initial metric-setting proceeding to not
2meet the requirements set forth in this Section, the
3Commission shall approve these metrics, and it shall establish
4calculations and goals for the tracking metrics set forth in
5subparagraph (3) of paragraph (A) of subsection (f) of this
6Section and calculations, targets, and incentives for the
7tracking metrics set forth in subparagraph (3) of paragraph
8(B) of subsection (f) of this Section. If the Commission finds
9that the metrics set forth in subparagraph (3) of paragraph
10(A) and subparagraph (3) of paragraph (B) of subsection (f) of
11this Section do not meet the requirements set forth in this
12Section, then the Commission shall approve substitute metrics.
13The Commission may also approve additional tracking and
14performance metrics as appropriate if they meet the
15requirements set forth in this Section.
16    Initial Performance Metrics shall include at a minimum,
17but 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
23tracking and performance metrics in future Annual Performance
24Evaluation proceedings to further measure achievement of the
25outcomes set forth in paragraph (2) of subsection (f) of this
26Section and the other goals and requirements of this Section.

 

 

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1    The Commission shall also evaluate metrics that were
2established in prior Annual Performance Evaluation proceedings
3under the procedures set forth in subsection (i) to determine
4if adjustments are required to improve the likelihood of the
5outcomes described in paragraph (2) of subsection (f). For
6metrics that were established in prior Annual Performance
7Evaluation proceedings and that the Commission elects to
8continue, the design of these metrics, including the goals of
9tracking metrics and the targets and incentive levels and
10structures of performance metrics, may be adjusted pursuant to
11the requirements in this Section. The Commission may also
12phase out tracking and performance metrics that were
13established in prior Annual Performance Evaluation proceedings
14if these metrics no longer meet the requirements of this
15Section or if they are rendered obsolete by the changing needs
16and technology of an evolving grid. Additionally, performance
17metrics that no longer require an incentive to create improved
18utility performance may become tracking metrics.
19    In service of the outcomes set forth in paragraph (2) of
20subsection (f), it is the intent of the General Assembly that
21the Commission in future Annual Performance Evaluation
22proceedings establish the tracking metrics and performance
23metrics set forth in subparagraph (A) and subparagraph (B) of
24paragraph (3) of subsection (f) of this Section when these
25metrics would be compliant with the requirements set forth in
26this Section.

 

 

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1    (i) Annual Performance Evaluation. On June 1 of each year,
2following the approval of the first Multi-Year Rate Plan and
3its initial delivery year, the Commission shall open an Annual
4Performance Evaluation proceeding to evaluate the utilities'
5performance on their metric targets during the delivery year
6just completed and accordingly determine rewards or penalties
7or both to be reflected in rates in the following calendar
8year.
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:

 

 

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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

 

 

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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

 

 

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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

 

 

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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
12at least 100,000 customers in Illinois shall procure power and
13energy for its eligible retail customers in accordance with
14the applicable provisions set forth in Section 1-75 of the
15Illinois Power Agency Act and this Section. Beginning with the
16delivery year commencing on June 1, 2017, such electric
17utility shall also procure zero emission credits from zero
18emission facilities in accordance with the applicable
19provisions set forth in Section 1-75 of the Illinois Power
20Agency Act, and, for years beginning on or after June 1, 2017,
21the utility shall procure renewable energy resources in
22accordance with the applicable provisions set forth in Section
231-75 of the Illinois Power Agency Act and this Section.
24Beginning with the delivery year commencing June 1, 2023, an
25electric utility that, on December 31, 2005, served at least

 

 

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13,000,000 customers in Illinois shall procure capacity for its
2retail customers in accordance with the applicable provisions
3set forth in Section 1-75 of the Illinois Power Agency Act and
4this Section. A small multi-jurisdictional electric utility
5that on December 31, 2005 served less than 100,000 customers
6in Illinois may elect to procure power and energy for all or a
7portion of its eligible Illinois retail customers in
8accordance with the applicable provisions set forth in this
9Section and Section 1-75 of the Illinois Power Agency Act.
10This Section shall not apply to a small multi-jurisdictional
11utility until such time as a small multi-jurisdictional
12utility requests the Illinois Power Agency to prepare a
13procurement plan for its eligible retail customers. "Eligible
14retail customers" for the purposes of this Section means those
15retail customers that purchase power and energy from the
16electric utility under fixed-price bundled service tariffs,
17other than those retail customers whose service is declared or
18deemed competitive under Section 16-113 and those other
19customer groups specified in this Section, including
20self-generating customers, customers electing hourly pricing,
21or those customers who are otherwise ineligible for
22fixed-price bundled tariff service. For those customers that
23are excluded from the procurement plan's electric supply
24service requirements, and the utility shall procure any supply
25requirements, including capacity, ancillary services, and
26hourly priced energy, in the applicable markets as needed to

 

 

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1serve those customers, provided that the utility may include
2in its procurement plan load requirements for the load that is
3associated with those retail customers whose service has been
4declared or deemed competitive pursuant to Section 16-113 of
5this Act to the extent that those customers are purchasing
6power and energy during one of the transition periods
7identified in subsection (b) of Section 16-113 of this Act.
8    (b) A procurement plan shall be prepared for each electric
9utility consistent with the applicable requirements of the
10Illinois Power Agency Act and this Section. For purposes of
11this Section, Illinois electric utilities that are affiliated
12by virtue of a common parent company are considered to be a
13single electric utility. Small multi-jurisdictional utilities
14may request a procurement plan for a portion of or all of its
15Illinois load. Each procurement plan shall analyze the
16projected balance of supply and demand for those retail
17customers to be included in the plan's electric supply service
18requirements over a 5-year period, with the first planning
19year beginning on June 1 of the year following the year in
20which the plan is filed. The plan shall specifically identify
21the carbon-free capacity to be procured, as described in
22Section 1-75 of the Illinois Power Agency Act, and the
23wholesale products to be procured following plan approval, and
24shall follow all the requirements set forth in the Public
25Utilities Act and all applicable State and federal laws,
26statutes, rules, or regulations, as well as Commission orders.

 

 

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1Nothing in this Section precludes consideration of contracts
2longer than 5 years and related forecast data. Unless
3specified otherwise in this Section, in the procurement plan
4or in the implementing tariff, any procurement occurring in
5accordance with this plan shall be competitively bid through a
6request for proposals process. Approval and implementation of
7the procurement plan shall be subject to review and approval
8by the Commission according to the provisions set forth in
9this Section. A procurement plan shall include each of the
10following 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

 

 

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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

 

 

HB0804 Engrossed- 834 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 835 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 836 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 838 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

HB0804 Engrossed- 840 -LRB102 10881 SPS 16211 b

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.

 

 

HB0804 Engrossed- 841 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 842 -LRB102 10881 SPS 16211 b

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
22the Illinois Power Agency Act and subsection (e) of this
23Section shall be administered by a procurement administrator
24and monitored by a procurement monitor.
25        (1) The procurement administrator shall:
26            (i) design the final procurement process in

 

 

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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

 

 

HB0804 Engrossed- 844 -LRB102 10881 SPS 16211 b

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

 

 

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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
14process 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.

 

 

HB0804 Engrossed- 846 -LRB102 10881 SPS 16211 b

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

 

 

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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
19following 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

HB0804 Engrossed- 852 -LRB102 10881 SPS 16211 b

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,
20the procurement administrator shall submit a confidential
21report to the Commission. The report shall contain the results
22of the bidding for each of the products along with the
23procurement administrator's recommendation for the acceptance
24and rejection of bids based on the price benchmark criteria
25and other factors observed in the process. The procurement
26monitor also shall submit a confidential report to the

 

 

HB0804 Engrossed- 853 -LRB102 10881 SPS 16211 b

1Commission within 2 business days after opening the sealed
2bids. The report shall contain the procurement monitor's
3assessment of bidder behavior in the process as well as an
4assessment of the procurement administrator's compliance with
5the procurement process and rules. The Commission shall review
6the confidential reports submitted by the procurement
7administrator and procurement monitor, and shall accept or
8reject the recommendations of the procurement administrator
9within 2 business days after receipt of the reports.
10    (g) Within 3 business days after the Commission decision
11approving the results of a procurement event, the utility
12shall enter into binding contractual arrangements with the
13winning suppliers using the standard form contracts; except
14that the utility shall not be required either directly or
15indirectly to execute the contracts if a tariff that is
16consistent with subsection (l) of this Section has not been
17approved and placed into effect for that utility.
18    (h) The names of the successful bidders and the load
19weighted average of the winning bid prices for each contract
20type and for each contract term shall be made available to the
21public at the time of Commission approval of a procurement
22event. The Commission, the procurement monitor, the
23procurement administrator, the Illinois Power Agency, and all
24participants in the procurement process shall maintain the
25confidentiality of all other supplier and bidding information
26in a manner consistent with all applicable laws, rules,

 

 

HB0804 Engrossed- 854 -LRB102 10881 SPS 16211 b

1regulations, and tariffs. Confidential information, including
2the confidential reports submitted by the procurement
3administrator and procurement monitor pursuant to subsection
4(f) of this Section, shall not be made publicly available and
5shall not be discoverable by any party in any proceeding,
6absent a compelling demonstration of need, nor shall those
7reports be admissible in any proceeding other than one for law
8enforcement purposes.
9    (i) Within 2 business days after a Commission decision
10approving the results of a procurement event or such other
11date as may be required by the Commission from time to time,
12the utility shall file for informational purposes with the
13Commission its actual or estimated retail supply charges, as
14applicable, by customer supply group reflecting the costs
15associated with the procurement and computed in accordance
16with the tariffs filed pursuant to subsection (l) of this
17Section and approved by the Commission.
18    (j) Within 60 days following August 28, 2007 (the
19effective date of Public Act 95-481), each electric utility
20that on December 31, 2005 provided electric service to at
21least 100,000 customers in Illinois shall prepare and file
22with the Commission an initial procurement plan, which shall
23conform in all material respects to the requirements of the
24procurement plan set forth in subsection (b); provided,
25however, that the Illinois Power Agency Act shall not apply to
26the initial procurement plan prepared pursuant to this

 

 

HB0804 Engrossed- 855 -LRB102 10881 SPS 16211 b

1subsection. The initial procurement plan shall identify the
2portfolio of power and energy products to be procured and
3delivered for the period June 2008 through May 2009, and shall
4identify the proposed procurement administrator, who shall
5have the same experience and expertise as is required of a
6procurement administrator hired pursuant to Section 1-75 of
7the Illinois Power Agency Act. Copies of the procurement plan
8shall be posted and made publicly available on the
9Commission's website. The initial procurement plan may include
10contracts 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

 

 

HB0804 Engrossed- 856 -LRB102 10881 SPS 16211 b

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
12under this Section, including, but not limited to, the costs
13of procuring power and energy demand-response resources under
14this Section. The utility shall file with the initial
15procurement plan its proposed tariffs through which its costs
16of procuring power that are incurred pursuant to a
17Commission-approved procurement plan and those other costs
18identified in this subsection (l), will be recovered. The
19tariffs shall include a formula rate or charge designed to
20pass through both the costs incurred by the utility in
21procuring a supply of electric power and energy for the
22applicable customer classes with no mark-up or return on the
23price paid by the utility for that supply, plus any just and
24reasonable costs that the utility incurs in arranging and
25providing for the supply of electric power and energy. The
26formula rate or charge shall also contain provisions that

 

 

HB0804 Engrossed- 857 -LRB102 10881 SPS 16211 b

1ensure that its application does not result in over or under
2recovery due to changes in customer usage and demand patterns,
3and that provide for the correction, on at least an annual
4basis, of any accounting errors that may occur. A utility
5shall recover through the tariff all reasonable costs incurred
6to implement or comply with any procurement plan that is
7developed and put into effect pursuant to Section 1-75 of the
8Illinois Power Agency Act and this Section, including any fees
9assessed by the Illinois Power Agency, costs associated with
10load balancing, and contingency plan costs. The electric
11utility shall also recover its full costs of procuring
12electric supply for which it contracted before the effective
13date of this Section in conjunction with the provision of full
14requirements service under fixed-price bundled service tariffs
15subsequent to December 31, 2006. All such costs shall be
16deemed to have been prudently incurred. The pass-through
17tariffs that are filed and approved pursuant to this Section
18shall not be subject to review under, or in any way limited by,
19Section 16-111(i) of this Act. All of the costs incurred by the
20electric utility associated with the purchase of zero emission
21credits in accordance with subsection (d-5) of Section 1-75 of
22the Illinois Power Agency Act and, beginning June 1, 2017, all
23of the costs incurred by the electric utility associated with
24the purchase of renewable energy resources in accordance with
25Sections 1-56 and 1-75 of the Illinois Power Agency Act, shall
26be recovered through the electric utility's tariffed charges

 

 

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1applicable to all of its retail customers, as specified in
2subsection (k) of Section 16-108 of this Act, and shall not be
3recovered through the electric utility's tariffed charges for
4electric power and energy supply to its eligible retail
5customers.
6    (m) The Commission has the authority to adopt rules to
7carry out the provisions of this Section. For the public
8interest, safety, and welfare, the Commission also has
9authority to adopt rules to carry out the provisions of this
10Section on an emergency basis immediately following August 28,
112007 (the effective date of Public Act 95-481).
12    (n) Notwithstanding any other provision of this Act, any
13affiliated electric utilities that submit a single procurement
14plan covering their combined needs may procure for those
15combined needs in conjunction with that plan, and may enter
16jointly into power supply contracts, purchases, and other
17procurement arrangements, and allocate capacity and energy and
18cost responsibility therefor among themselves in proportion to
19their requirements.
20    (o) On or before June 1 of each year, the Commission shall
21hold an informal hearing for the purpose of receiving comments
22on the prior year's procurement process and any
23recommendations for change.
24    (p) An electric utility subject to this Section may
25propose to invest, lease, own, or operate an electric
26generation facility as part of its procurement plan, provided

 

 

HB0804 Engrossed- 859 -LRB102 10881 SPS 16211 b

1the utility demonstrates that such facility is the least-cost
2option to provide electric service to those retail customers
3included in the plan's electric supply service requirements.
4If the facility is shown to be the least-cost option and is
5included in a procurement plan prepared in accordance with
6Section 1-75 of the Illinois Power Agency Act and this
7Section, then the electric utility shall make a filing
8pursuant to Section 8-406 of this Act, and may request of the
9Commission any statutory relief required thereunder. If the
10Commission grants all of the necessary approvals for the
11proposed facility, such supply shall thereafter be considered
12as a pre-existing contract under subsection (b) of this
13Section. The Commission shall in any order approving a
14proposal under this subsection specify how the utility will
15recover the prudently incurred costs of investing in, leasing,
16owning, or operating such generation facility through just and
17reasonable rates charged to those retail customers included in
18the plan's electric supply service requirements. Cost recovery
19for facilities included in the utility's procurement plan
20pursuant to this subsection shall not be subject to review
21under or in any way limited by the provisions of Section
2216-111(i) of this Act. Nothing in this Section is intended to
23prohibit a utility from filing for a fuel adjustment clause as
24is otherwise permitted under Section 9-220 of this Act.
25    (q) If the Illinois Power Agency filed with the
26Commission, under Section 16-111.5 of this Act, its proposed

 

 

HB0804 Engrossed- 860 -LRB102 10881 SPS 16211 b

1procurement plan for the period commencing June 1, 2017, and
2the Commission has not yet entered its final order approving
3the plan on or before the effective date of this amendatory Act
4of the 99th General Assembly, then the Illinois Power Agency
5shall file a notice of withdrawal with the Commission, after
6the effective date of this amendatory Act of the 99th General
7Assembly, to withdraw the proposed procurement of renewable
8energy resources to be approved under the plan, other than the
9procurement of renewable energy credits from distributed
10renewable energy generation devices using funds previously
11collected from electric utilities' retail customers that take
12service pursuant to electric utilities' hourly pricing tariff
13or tariffs and, for an electric utility that serves less than
14100,000 retail customers in the State, other than the
15procurement of renewable energy credits from distributed
16renewable energy generation devices. Upon receipt of the
17notice, the Commission shall enter an order that approves the
18withdrawal of the proposed procurement of renewable energy
19resources from the plan. The initially proposed procurement of
20renewable energy resources shall not be approved or be the
21subject of any further hearing, investigation, proceeding, or
22order of any kind.
23    This amendatory Act of the 99th General Assembly preempts
24and supersedes any order entered by the Commission that
25approved the Illinois Power Agency's procurement plan for the
26period commencing June 1, 2017, to the extent it is

 

 

HB0804 Engrossed- 861 -LRB102 10881 SPS 16211 b

1inconsistent with the provisions of this amendatory Act of the
299th General Assembly. To the extent any previously entered
3order approved the procurement of renewable energy resources,
4the portion of that order approving the procurement shall be
5void, other than the procurement of renewable energy credits
6from distributed renewable energy generation devices using
7funds previously collected from electric utilities' retail
8customers that take service under electric utilities' hourly
9pricing tariff or tariffs and, for an electric utility that
10serves less than 100,000 retail customers in the State, other
11than the procurement of renewable energy credits for
12distributed 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
17homes and businesses can contribute to the creation of a clean
18energy economy, conservation of natural resources, and
19reliability of the electricity grid through the installation
20of cost-effective renewable energy generation, energy
21efficiency, and energy storage systems. Further, a large
22portion of Illinois residents and businesses that would
23benefit from the installation of energy efficiency, storage,
24and renewable energy generation systems are unable to purchase
25systems due to capital or credit barriers. This State should

 

 

HB0804 Engrossed- 862 -LRB102 10881 SPS 16211 b

1pursue options to enable many more Illinoisans to access the
2health, environmental, and financial benefits of new clean
3energy technology.
4    (b) As used in this Section:
5    "Commission" means the Illinois Commerce Commission.
6    "Energy project" means renewable energy generation
7systems, including solar projects, energy efficiency upgrades,
8energy storage systems, or any combination thereof.
9    "The Fund" means the Clean Energy Jobs and Justice Fund
10established in the Illinois Clean Energy Jobs and Justice Fund
11Act.
12    "Program" means the Equitable Energy Upgrade Program
13established under subsection (c).
14    "Utility" means electric utilities providing services
15under this Act.
16    (c) The Illinois Commerce Commission shall open an
17investigation into and direct all electric utilities in this
18State to adopt an Equitable Energy Upgrade Program that
19permits customers to finance the construction of energy
20projects through an optional tariff payable directly through
21their utility bill, modeled after the Pay As You Save system,
22developed by the Energy Efficiency Institute. The Program
23model shall enable utilities to offer to make investments in
24energy projects to customer properties with low-cost capital
25and use an opt-in tariff to recover the costs. The Program
26shall be designed to provide customers with immediate

 

 

HB0804 Engrossed- 863 -LRB102 10881 SPS 16211 b

1financial savings if they choose to participate. The Program
2shall allow residential electric utility customers that own
3the property, or renters that have permission of the property
4owner, for which they subscribe to utility service to agree to
5the installation of an energy project. The Program shall
6ensure:
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
24Program guidelines with the anticipated schedule of Program
25availability as follows:
26        (1) Year 1. Beginning in the first year of operation,

 

 

HB0804 Engrossed- 864 -LRB102 10881 SPS 16211 b

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,
14the 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

 

 

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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
26Program conditions established under this Section, each

 

 

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1utility subject to the requirements of this Section shall
2submit an informational filing to the Commission that
3describes its plan for implementing the provisions of this
4Section. If the Commission finds that the submission does not
5properly comply with the statutory or regulatory requirements
6of the Program, the Commission may require that the utility
7make modifications to its filing.
8    (g) An independent process evaluation shall be conducted
9after one year of the Program's operation. An independent
10impact evaluation shall be conducted after 3 years of
11operation, excluding one-time startup costs and results from
12the first 12 months of the Program. The Commission shall
13convene an advisory council of stakeholders, including
14representation of low-income and environmental justice
15community members to make recommendations in response to the
16findings of the independent evaluation.
17    (h) The Equitable Energy Upgrade Program shall be designed
18using PAYS system guidelines to be cost-effective for
19customers. Only projects that are deemed to be cost-effective
20and can be reasonably expected to ensure customer savings are
21eligible for funding through the Program, unless, as specified
22in paragraph (1) of subsection (c), customers able to make
23upfront copayments to installers buy down the cost of projects
24so they can be deemed cost-effective.
25    (i) Eligible customers must be:
26        (1) property renters with permission of the property

 

 

HB0804 Engrossed- 867 -LRB102 10881 SPS 16211 b

1    owner; or
2        (2) property owners.
3    (j) Calculation of project cost-effectiveness shall be
4based 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
15after the Pay As You Save system, by which Program
16participants finance energy projects using the savings that
17the energy project creates with a tariffed on-bill program.
18Eligible projects shall not create personal debt for the
19customer, result in a lien in the event of nonpayment, or
20require customers to pay monthly charges for any upgrade that
21fails and is not repaired within 21 days. The utility may
22restart charges once the upgrade is repaired and functioning
23and extend the term of payments to recover its costs for missed
24payments and deferred cost recovery, providing the upgrade
25continues to function.
26    (l) Any energy project that is defective or damaged due to

 

 

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1no fault of the participant must be either replaced or
2repaired with parts that meet industry standards at the cost
3of the utility or vendor, as specified by the Commission, and
4charges shall be suspended until repairs or replacement is
5completed. The Commission may establish, increase, or replace
6the requirements imposed in this subsection. The Commission
7may determine that this responsibility is best handled by
8participating project vendors in the form of insurance,
9contractual guarantees, or other mechanisms, and issue rules
10detailing this requirement. In no case will customers be
11charged monthly payments for upgrades that are no longer
12functioning.
13    (m) In the event of nonpayment, the remaining balance due
14to pay off the system shall remain with the utility meter at an
15upgraded location. The Commission shall establish conditions
16subject to this constraint in the event of nonpayment that are
17in accordance with the PAYS system.
18    (n) If the demand by utility customers exceeds the Program
19capital supply in a given year, utilities shall ensure that
2050% of participants are: (1) customers in neighborhoods where
21a majority of households make 150% or less of area median
22income; or (2) residents of environmental justice communities.
23    (o) Utilities shall endeavor to inform customers about the
24availability of the Program, their potential eligibility for
25participation in the Program, and whether they are likely to
26save money on the basis of an estimate conducted using

 

 

HB0804 Engrossed- 869 -LRB102 10881 SPS 16211 b

1variables consistent with the Program that the utility has at
2its disposal. The Commission may establish guidelines by which
3utilities must abide by this directive and alternatives if the
4Commission deems utilities' efforts as inadequate.
5    (p) Subject to Commission specifications established in
6subsection (c), each utility shall work with certified project
7vendors selected using a request for proposals process to
8establish the terms and processes under which a utility can
9install eligible renewable energy generation and energy
10storage systems using the capital to fit the Equitable Energy
11Upgrade model. The certified project vendor shall explain and
12offer the approved upgrades to customers and shall assist
13customers in applying for financing through the Equitable
14Energy Upgrade Program. As part of the process, vendors shall
15also provide participants with information about any other
16relevant incentives that may be available.
17    (q) An electric utility shall recover all of the prudently
18incurred costs of offering a program approved by the
19Commission under this Section. For investor-owned utilities,
20shareholder incentives will be proportional to meeting
21Commission approved thresholds for the number of customers
22served and the amount of its investments in those locations.
23    (r) The Illinois Commerce Commission shall adopt all rules
24necessary for the administration of this Section.
 
25    (220 ILCS 5/16-128B)

 

 

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1    Sec. 16-128B. Qualified energy efficiency installers.
2    (a) Within 18 months after the effective date of this
3amendatory Act of the 99th General Assembly, the Commission
4shall adopt rules, including emergency rules, establishing a
5process for entities installing energy efficiency measures to
6certify compliance with the requirements of this Section.
7    The process shall include an option to complete the
8certification electronically by completing forms on-line. An
9entity installing energy efficiency measures shall be
10permitted to complete the certification after the subject work
11has been completed.
12    The Commission shall maintain on its website a list of
13entities installing energy efficiency measures that have
14successfully completed the certification process.
15    (b) In addition to any authority granted to the Commission
16under 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

 

 

HB0804 Engrossed- 871 -LRB102 10881 SPS 16211 b

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
6with a rebate or other energy efficiency incentive for a
7measure that exceeds a minimal amount determined by the
8Commission unless the customer provides the electric utility
9with (1) a certification that the person installing the energy
10efficiency measure was a self-installer; or (2) evidence that
11the energy efficiency measure was installed by an entity
12certified under this Section that is also in good standing
13with 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

 

 

HB0804 Engrossed- 872 -LRB102 10881 SPS 16211 b

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
17be deposited into the Public Utility Fund and used to fund the
18Commission's compliance with the obligations imposed by this
19Section.
20    (f) The rules adopted under this Section shall specify the
21initial dates for compliance with the rules.
22    (g) For purposes of this Section, entities installing
23energy efficiency measures shall endeavor to support the
24diversity goals of this State by attracting, developing,
25retaining, and providing opportunities to employees of all
26backgrounds and by supporting women-owned female-owned, black,

 

 

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1indigenous, and people of color-owned minority-owned, and
2veteran-owned, and small businesses, and nonprofit
3organizations, 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
9Section 3.4 of the Electric Supplier Act.
10    "Municipal utility" means a public utility that is owned
11and operated by any political subdivision or municipal
12corporation of this State or owned by such an entity and
13operated by any lessee or any operating agent thereof.
14    "Public utility" has the definition set forth in Section
153-105 of this Act.
16    (b) Customers shall have the right to, and the Commission
17shall protect the rights of customers to, produce, consume,
18and store their own energy without discriminatory
19repercussions from a public utility, electric cooperative, or
20municipal utility, regardless of whether that energy is
21produced via a system that is owned outright, leased, or
22financed through a behind-the-meter solar power-purchase
23agreement 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

 

 

HB0804 Engrossed- 874 -LRB102 10881 SPS 16211 b

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
23utility customer who produces, consumes, and stores his or her
24own energy shall not face discriminatory rate design, fees,
25treatment, or excessive compliance requirements as provided by
26paragraph (3) of subsection (n) of Section 16-107.5.

 

 

HB0804 Engrossed- 875 -LRB102 10881 SPS 16211 b

1    (d) A public utility, electric cooperative, or municipal
2utility customer shall have a right to appeal any decision
3related to self-generation and storage that violates these
4rights to self-generation and non-discrimination pursuant to
5the provisions of this Section through a complaint process.
6    (e) The Illinois Commerce Commission shall adopt all rules
7necessary for the administration of this Section.
 
8    Section 90-45. The Environmental Protection Act is amended
9by changing Section 9.10 and by adding Section 9.18 as
10follows:
 
11    (415 ILCS 5/9.10)
12    Sec. 9.10. Fossil fuel-powered electric generating units
13Fossil 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
17identical in meaning and have the same definition as used in
18the Clean Jobs, Workforce and Contractor Equity Act.
19    "Emissions" means greenhouse gases, particulate matter,
20mercury, nitrogen oxides, sulfur dioxide, and any other
21pollutant that the Agency deems appropriate for regulation to
22protect health or land in the State.
23    "Frontline community" means any community or municipality
24within a 3-mile radius of a fossil fuel-powered electric

 

 

HB0804 Engrossed- 876 -LRB102 10881 SPS 16211 b

1generating unit.
2    "Meaningful involvement" means: (1) potentially affected
3populations have an appropriate opportunity to participate in
4decisions about a proposed regulatory action that may affect
5their environment or health; (2) the populations'
6contributions can influence the EPA's rulemaking decisions;
7(3) the concerns of all participants involved shall be
8considered in the decision-making process; and (4) the IEPA
9shall seek out and facilitate the involvement of populations
10potentially 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

 

 

HB0804 Engrossed- 877 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 878 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 879 -LRB102 10881 SPS 16211 b

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
14the General Assembly contained in subsection (a) of this
15Section, the Agency shall, within 180 days after the effective
16date of this amendatory Act of the 102nd General Assembly,
17initiate a rulemaking to amend Title 35 of the Illinois
18Administrative Code to establish annual declining greenhouse
19gas pollution caps and caps on co-pollutants, including, but
20not limited to, particulate matter (including both PM10 and
21PM2.5), mercury, nitrogen oxides, and sulfur dioxide, beginning
22in 2023 from all fossil fuel-powered electric generating units
23(including, but not limited to, coal-fired, coal-derived,
24oil-fired, combustion turbine, integrated gasification
25combined cycle, and cogeneration facilities with a nameplate
26capacity that exceeds 25 MW) so as to progressively eliminate

 

 

HB0804 Engrossed- 880 -LRB102 10881 SPS 16211 b

1all emissions of those pollutants from Illinois' electric
2sector by the year 2030. No later than one year after receipt
3of the Agency's proposal under this Section, the Board shall
4adopt rules setting out declining annual emissions caps for
5greenhouse gases (CO2 equivalent) and co-pollutants,
6including, but not limited to, particulate matter (including
7both PM10 and PM2.5), mercury, nitrogen oxides, and sulfur
8dioxide, for each individual fossil fuel-powered electric
9generating unit in Illinois as well as aggregate annual
10statewide emissions caps. The Board may set different
11declining caps for each plant, but caps must decline to zero
12emissions for all plants by 2030. As part of its rulemaking
13proposal, 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

 

 

HB0804 Engrossed- 881 -LRB102 10881 SPS 16211 b

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;

 

 

HB0804 Engrossed- 882 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 883 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 884 -LRB102 10881 SPS 16211 b

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

 

 

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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

 

 

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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.
7before September 30, 2004, but not before September 30, 2003,
8issue to the House and Senate Committees on Environment and
9Energy findings that address the potential need for the
10control or reduction of emissions from fossil fuel-fired
11electric generating plants, including the following
12provisions:
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

 

 

HB0804 Engrossed- 887 -LRB102 10881 SPS 16211 b

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,
21considering also energy supply, reliability and costs, the
22role of renewable forms of energy, and developments in federal
23law and regulations that may affect any state actions, prior
24to making final decisions in Illinois.
25    (c) Nothing in this Section is intended to or should be
26interpreted in a manner to limit or restrict the authority of

 

 

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1the Illinois Environmental Protection Agency to propose, or
2the Illinois Pollution Control Board to adopt, any regulations
3applicable or that may become applicable to the facilities
4covered by this Section that are required by federal law and
5other Illinois laws.
6    (d) The Agency may file proposed rules with the Board to
7effectuate the goals set forth in subsection (b) its findings
8provided to the Senate Committee on Environment and Energy and
9the House Committee on Environment and Energy in accordance
10with subsection (b) of this Section. Any such proposal shall
11not be submitted sooner than 90 days after the issuance of the
12findings provided for in subsection (b) of this Section. The
13Board shall take action on any such proposal within one year of
14the 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

 

 

HB0804 Engrossed- 889 -LRB102 10881 SPS 16211 b

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)

 

 

HB0804 Engrossed- 890 -LRB102 10881 SPS 16211 b

1    Sec. 9.18. Energy community reinvestment fee.
2    (a) As used in this Section:
3    "Carbon dioxide equivalent" means a unit of measure
4denoting the amount of emissions from a greenhouse gas,
5expressed as the amount of carbon dioxide by weight that
6produces the same global warming impact.
7    "Fossil fuel generating plant" means an electric
8generating unit or a co-generating unit that produces
9electricity using fossil fuels.
10    "Payment period" means the three-month period of time
11during which emissions are measured for the purpose of
12quarterly 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

 

 

HB0804 Engrossed- 891 -LRB102 10881 SPS 16211 b

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.
19The Agency shall establish procedures for the collection of
20energy community reinvestment fees. Energy community
21reinvestment fees shall be paid at least quarterly (once every
223 months) by owners of all fossil fuel generating plants in
23Illinois, based on the share of each plant's contribution to
24the total amount of air pollution emitted by all fossil fuel
25generating plants in that payment period, as determined by the
26Agency and described in this subsection (c).

 

 

HB0804 Engrossed- 892 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 893 -LRB102 10881 SPS 16211 b

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.
26If the Agency receives notification from the Department of

 

 

HB0804 Engrossed- 894 -LRB102 10881 SPS 16211 b

1Commerce and Economic Opportunity that a plant owner has
2failed to engage productively in stakeholder meetings and with
3Clean Energy Empowerment Zone Task Forces, as described in the
4Energy Community Reinvestment Act, an enforcement action may
5be brought under Section 31 of this Act. In addition to any
6other relief that may be obtained as part of the enforcement
7action, the Agency may seek to recover the avoided engagement
8fees. The avoided engagement fees shall be calculated as
9double the amount that is owed by the plant owner under
10subsection (c) for the current payment period, and subsequent
11payment periods, until the Department of Commerce and Economic
12Opportunity sends notification to the Agency that the plant
13owner is in compliance with the stakeholder engagement
14requirements of the Energy Community Reinvestment Act. Avoided
15engagement fees (which, for clarity, are in addition to fees
16collected under subsection (c)) shall be deposited into the
17Energy Community Reinvestment Fund to be directed solely to
18support the local community's own planning efforts and
19investments, and the Agency shall transmit a notification to
20the Department of Commerce and Economic Opportunity of the
21amount collected, and the plant owner responsible.
22    (e) If a plant owner subject to a fee under this Section
23fails to pay the fee within 90 days after its due date, or
24makes the fee payment from an account with insufficient funds
25to cover the amount of the fee payment, the Agency shall notify
26the plant owner of the failure to pay the fee. If the plant

 

 

HB0804 Engrossed- 895 -LRB102 10881 SPS 16211 b

1owner fails to pay the fee within 60 days after such
2notification, the Agency may, by written notice, immediately
3revoke the air pollution operating permit. Failure of the
4Agency to notify the plant owner of failure to pay a fee due
5under this Section, or the payment of the fee from an account
6with insufficient funds to cover the amount of the fee
7payment, does not excuse or alter the duty of the plant owner
8to comply with the provisions of this Section.
9    (f) No later than November 30 of each year, the Agency
10shall submit a report to the Department of Commerce and
11Economic Opportunity describing the amount of fees collected
12from each fossil fuel-powered electric generating unit, the
13status of any delinquencies, and the total amount expected to
14be collected.
15    (g) Nothing in this Section shall be interpreted to mean
16that the sum owed by each fossil fuel generating plant due to
17the energy community reinvestment fee is equal to or greater
18than the financial valuation of the total harm created by air
19pollution 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

 

 

HB0804 Engrossed- 896 -LRB102 10881 SPS 16211 b

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

 

 

HB0804 Engrossed- 897 -LRB102 10881 SPS 16211 b

1    excluded or impaired by this Section.
 
2    (415 ILCS 5/9.15 rep.)
3    Section 90-50. The Environmental Protection Act is amended
4by repealing Section 9.15.
 
5    Section 90-55. The Illinois Nuclear Facility Safety Act is
6amended 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
11assesses and collects property taxes.
12    "Qualifying Nuclear Facility" means a facility playing or
13having played a direct role in the operation of commercial
14nuclear power reactors for the generation of electricity;
15including facilities used to process radioactive materials for
16nuclear fuel fabrication, nuclear power reactors, high-level
17and low-level radioactive waste treatment sites, and storage
18and disposal locations.
19    "Qualifying Nuclear Operator" means any entity that
20operates or has in the past 50 years operated a Qualifying
21Nuclear Facility.
22    (b) Notwithstanding any other provision of law to the
23contrary, any local taxing body may establish and collect an

 

 

HB0804 Engrossed- 898 -LRB102 10881 SPS 16211 b

1annual Nuclear Impact Fee from Qualifying Nuclear Facility
2within the boundaries of that local taxing body.
3    (c) The Nuclear Impact Fee shall be charged to the
4Qualifying Nuclear Operator.
5    (d) The Nuclear Impact Fee may only be applied
6prospectively on or after the effective date of this
7amendatory Act of the 102nd General Assembly, and may not be
8applied retroactively to a date before which this amendatory
9Act is passed.
10    (e) The Nuclear Impact Fee permission granted to local
11taxing bodies under these rules shall expire separately for
12each individual local taxing body. That date of expiration of
13the Nuclear Impact Fee permission for each local taxing body
14shall be either exactly 30 years after the effective date of
15this amendatory Act of the 102nd General Assembly, or 10 years
16following the permanent shutdown of the Qualifying Nuclear
17Facility from which the local taxing body collected property
18taxes, whichever date is later.
19    (f) In any calendar year, a local taxing body may not
20impose a Nuclear Impact Fee that exceeds 25% of the average
21annual amount of property taxes, or payments in lieu of taxes,
22paid to that local taxing body by the Qualifying Nuclear
23Facility over the most recent 5-year period that the
24Qualifying Nuclear Facility has been operational.
25    (g) Any failure by the Qualifying Nuclear Operator to pay
26a Nuclear Impact Fee within 180 days after the fee payment

 

 

HB0804 Engrossed- 899 -LRB102 10881 SPS 16211 b

1deadline shall be deemed a failure to comply, and shall
2automatically require the Qualifying Nuclear Operator to pay
3the Local Entity double the otherwise-allowable property
4taxes, up to 50% of the average annual amount of property taxes
5paid over the most recent 5-year period that the Qualifying
6Nuclear Facility was operational.
7    (h) To establish a Nuclear Impact Fee, the local taxing
8body shall adopt a resolution or ordinance describing the
9public need for economic transition, the annual amount of the
10fee, the Qualifying Nuclear Facility, the Qualifying Nuclear
11Operator to be assessed, and a description of projected
12expenses for the fee for the period the fee is in effect. The
13local taxing body shall conduct a public hearing before
14adopting a resolution or ordinance imposing a Nuclear Impact
15Fee permitted under this Section. The hearing shall be held
16within the boundaries of the local taxing body. Public notice
17of the time, place, and purpose of the hearing shall be given
18at least 10 business days before the date of the hearing.
19    (i) A local taxing body shall include in its resolution or
20ordinance the method for collection of payment of a Nuclear
21Impact Fee. A county which has adopted a resolution or
22ordinance imposing a Nuclear Impact Fee may collect such Fees
23in the regular property tax bills of the county. The county
24collector of the county in which a local taxing body has
25adopted a resolution or ordinance imposing a Nuclear Impact
26Fee may bill and collect such Fees with the regular property

 

 

HB0804 Engrossed- 900 -LRB102 10881 SPS 16211 b

1tax bills of the county if requested by a local taxing body
2within its jurisdiction.
3    (j) The revenue collected through the Nuclear Impact Fee
4by a local taxing body shall only be used for the purposes of
5supporting the "economic transition" of local communities that
6have experienced the closure of a Qualifying Nuclear Facility
7or will experience a Qualifying Nuclear Facility in the
8future. "Economic transition" uses may include tax base
9replacement, workforce development, public school funding,
10essential public service, or sustainable infrastructure
11projects.
12    (k) The revenue collected under this Section shall not be
13used either directly or indirectly to aid, subsidize, enact,
14support, or otherwise enable investment in any electricity
15generation infrastructure that processes or can process fossil
16or nuclear fuels.
17    (l) No later than November 30 of each calendar year, each
18local taxing body collecting a Nuclear Impact Fee pursuant to
19this Section shall remit to the Department of Revenue for
20deposit in the Energy Community Reinvestment Fund 20% of the
21annual revenue collection from any Nuclear Impact Fees in
22order to help fund state programs that support economic
23transition and workforce development, showing such information
24as the Department of Revenue may reasonably require.
25    (m) No later than November 30 of each calendar year, each
26local taxing body collecting a Nuclear Impact Fee pursuant to

 

 

HB0804 Engrossed- 901 -LRB102 10881 SPS 16211 b

1this Section shall submit to the Department of Commerce and
2Economic Opportunity and the Agency a report detailing the
3total amount of funds collected from any Nuclear Impact Fees,
4the planned expenditure of the funds, the coordination of
5expenditure with any Department economic transition activities
6and investments, copies of any adoption of or amendments to
7resolutions or ordinances impacting the assessment of Nuclear
8Impact Fees, and a certification of the remittance of the
9State portion of the funds collected to the Department of
10Revenue.
11    (n) The Department of Commerce and Economic Opportunity
12may establish such rules as it deems necessary to implement
13this Section.
 
14    Section 90-60. The Prevailing Wage Act is amended by
15adding Section 3.3 as follows:
 
16    (820 ILCS 130/3.3 new)
17    Sec. 3.3. Job classifications. The Department of Labor
18must, within 60 days after the effective date of this
19amendatory Act of the 102nd General Assembly, identify job
20categories for laborers, mechanics, and other workers employed
21in the provision of programs created or altered by this Act,
22for which the Department has not already set a prevailing rate
23of wages.
24    The Department of Labor must, within 240 days after the

 

 

HB0804 Engrossed- 902 -LRB102 10881 SPS 16211 b

1effective date of this amendatory Act of the 102nd General
2Assembly, set a prevailing rate of wages for each identified
3job category.
 
4
Article 99. Nonacceleration; Effective Date

 
5    Section 99-95. No acceleration or delay. Where this Act
6makes changes in a statute that is represented in this Act by
7text that is not yet or no longer in effect (for example, a
8Section represented by multiple versions), the use of that
9text does not accelerate or delay the taking effect of (i) the
10changes made by this Act or (ii) provisions derived from any
11other Public Act.
 
12    Section 99-99. Effective date. This Act takes effect upon
13becoming law.

 

 

HB0804 Engrossed- 903 -LRB102 10881 SPS 16211 b

1 INDEX
2 Statutes amended in order of appearance
3    New Act
4    5 ILCS 100/5-45.8 new
5    5 ILCS 100/5-45.9 new
6    5 ILCS 100/5-49.10 new
7    20 ILCS 627/30 new
8    20 ILCS 627/35 new
9    20 ILCS 627/40 new
10    20 ILCS 3125/10
11    20 ILCS 3125/15
12    20 ILCS 3125/20
13    20 ILCS 3125/30
14    20 ILCS 3125/45
15    20 ILCS 3125/55 new
16    20 ILCS 3855/1-5
17    20 ILCS 3855/1-10
18    20 ILCS 3855/1-20
19    20 ILCS 3855/1-56
20    20 ILCS 3855/1-75
21    30 ILCS 105/5.935 new
22    30 ILCS 105/5.936 new
23    30 ILCS 105/5.937 new
24    35 ILCS 5/201
25    35 ILCS 120/5k-5 new

 

 

HB0804 Engrossed- 904 -LRB102 10881 SPS 16211 b

1    105 ILCS 5/2-3.182 new
2    220 ILCS 5/2-107from Ch. 111 2/3, par. 2-107
3    220 ILCS 5/4-604 new
4    220 ILCS 5/4-605 new
5    220 ILCS 5/8-103B
6    220 ILCS 5/8-104.1 new
7    220 ILCS 5/8-512 new
8    220 ILCS 5/9-220.3
9    220 ILCS 5/9-222.1B new
10    220 ILCS 5/9-227from Ch. 111 2/3, par. 9-227
11    220 ILCS 5/10-104from Ch. 111 2/3, par. 10-104
12    220 ILCS 5/16-105.17 new
13    220 ILCS 5/16-107
14    220 ILCS 5/16-107.5
15    220 ILCS 5/16-107.6
16    220 ILCS 5/16-107.7 new
17    220 ILCS 5/16-107.8 new
18    220 ILCS 5/16-108
19    220 ILCS 5/16-108.5
20    220 ILCS 5/16-108.9 new
21    220 ILCS 5/16-108.18 new
22    220 ILCS 5/16-111.5
23    220 ILCS 5/16-111.10 new
24    220 ILCS 5/16-128B
25    220 ILCS 5/16-131 new
26    415 ILCS 5/9.10

 

 

HB0804 Engrossed- 905 -LRB102 10881 SPS 16211 b

1    415 ILCS 5/9.18 new
2    415 ILCS 5/9.15 rep.
3    420 ILCS 10/10 new
4    820 ILCS 130/3.3 new