Sen. Michael E. Hastings

Filed: 3/30/2021

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1100

2    AMENDMENT NO. ______. Amend Senate Bill 1100 by replacing
3everything after the enacting clause with the following:
 
4
"Article 5. Energy Community Reinvestment Act

 
5    Section 5-1. Short title. This Article may be cited as the
6Energy Community Reinvestment Act. References in this Article
7to "this Act" mean this Article.
 
8    Section 5-5. Findings. The General Assembly finds that, as
9part of putting Illinois on a path to 100% renewable energy,
10the State of Illinois should ensure a just transition to that
11goal, providing support for the transition of Illinois'
12communities and workers impacted by closures or reduced use of
13fossil fuel power plants, nuclear power plants, or coal mines
14by allocating new economic development resources for business
15tax incentives, workforce training, site clean-up and reuse,

 

 

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

 

 

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1context otherwise requires:
2    "Agencies" or "State agencies" has the same meaning as
3"State agencies" under Section 1-7 of the Illinois State
4Auditing Act.
5    "Board" means the Empowerment Zone Board created in
6Section 5-20.
7    "Commission" means the Energy Transition Workforce
8Commission created in Section 5-45.
9    "Department" means the Department of Commerce and Economic
10Opportunity.
11    "Displaced energy worker" means an energy worker who has
12lost employment, or is anticipated by the Department to lose
13employment within the next 2 years, due to the reduced
14operation or closure of a fossil fuel power plant, nuclear
15power plant, or coal mine.
16    "Empowerment Zone" means an area of the State certified by
17the Department as an Empowerment Zone under this Act.
18    "Energy worker" means a person who has been employed
19full-time for a period of one year or longer, and within the
20previous 5 years, at a fossil fuel power plant, a nuclear power
21plant, or a coal mine located within the State of Illinois,
22whether or not they are employed by the owner of the power
23plant or mine. Energy workers are considered to be full-time
24if they work at least 35 hours per week for 45 weeks a year or
25the 1,820 work-hour equivalent with vacations, paid holidays,
26and sick time, but not overtime, included in this computation.

 

 

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1Classification of an individual as an energy worker continues
2for 5 years from the latest date of employment or the effective
3date of this Act, whichever is later.
4    "Environmental justice communities" shall have the meaning
5set forth in Section 1-56 of the Illinois Power Agency Act and
6the most recent Commission-approved long-term renewable
7resources procurement plan of the Illinois Power Agency.
8    "Fossil fuel power plant" means an electric generating
9facility powered by gas, coal, other fossil fuels, or a
10combination thereof.
11    "Local labor market area" means an economically integrated
12area within which individuals reside and find employment
13within a reasonable distance of their places of residence or
14can readily change jobs without changing their places of
15residence.
16    "Low-income" means persons and families whose income does
17not exceed 80% of area median income, adjusted for family size
18and revised every 2 years.
 
19    Section 5-15. Designation of Empowerment Zones.
20    (a) Purpose. It is the intent of the General Assembly that
21designation of a community as an Empowerment Zone shall be
22reserved for communities that have experienced economic or
23environmental hardship due to the transition to clean and
24renewable energy, including closure of fossil fuel power
25generation, reduction in coal mining and extraction, and the

 

 

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1failure to timely recognize the value of the clean attributes
2of nuclear generation. The purpose of this Section 5-15 is to
3establish an efficient and equitable process by which the
4Department and communities across the State may seek the
5designation of Empowerment Zones. The process conducted by the
6Department, the Board, and participating units of local
7government shall be as transparent and inclusive as is
8reasonably practical.
9    (b) Notification of local governments. Within 30 days
10after the effective date of this Act, the Department shall
11publish a notice on its website stating its intention to begin
12the review of potential locations for Empowerment Zone
13regional designations, and solicit information from the public
14on this topic. Within 45 days after the effective date of this
15Act, the Department shall submit a notice to the county board
16of each jurisdiction in which a fossil fuel power plant, coal
17mine, or nuclear power plant is, or was, within 30 years of the
18effective date of this Act, located, informing the local
19governments of their intention to develop a list of
20Empowerment Zones, providing a basic explanation of the
21benefits of designation as an Empowerment Zone, and informing
22them of participation opportunities in the designation
23process. The Department may notify other persons or local
24government units of this process at any time.
25    (c) Proposed list of Empowerment Zones. Within 120 days
26after the effective date of this Act, the Department shall

 

 

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1develop a proposed list of geographic regions in Illinois that
2qualify as Empowerment Zones. The Department shall work with
3the Illinois Environmental Protection Agency, the Commission
4on Environmental Justice, the Department of Labor, the
5Department of Natural Resources, and community organizations
6to identify regions impacted by the decline of coal
7generation, gas generation, nuclear generation, and coal
8mining to develop the recommended list of regions that qualify
9for Empowerment Zone designations. The Department shall
10furnish maps that identify the proposed boundaries of proposed
11Empowerment Zones, and include justification for the inclusion
12or exclusion of certain locations or regions. The proposed
13list shall be subject to the notice and comment process
14established in subsection (e).
15    (d) Criteria for designation as an Empowerment Zone. A
16region shall be proposed by the Department, and certified by
17the Board as an Empowerment Zone if it meets all of the
18following characteristics:
19        (1) the region is a contiguous area, provided that a
20    Zone area may exclude wholly surrounded territory within
21    its boundaries;
22        (2) the region satisfies any additional criteria
23    established by the Department consistent with the purposes
24    of this Act; and
25        (3) the region meets one or more of the following:
26            (A) the area contains a fossil fuel or nuclear

 

 

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1        power plant that was retired from service or has
2        significantly reduced service within 10 years before
3        the application for designation or will be retired or
4        have service significantly reduced within 5 years
5        following the application for designation;
6            (B) the area contains a coal mine that was closed
7        or had operations significantly reduced within 10
8        years before the application for designation or is
9        anticipated to be closed or have operations
10        significantly reduced within 5 years following the
11        application for designation; or
12            (C) the area contains a nuclear power plant that
13        was decommissioned, but continued storing nuclear
14        waste before the effective date of this Act.
15    (e) Review and comment process. After developing the
16proposed list of regions to be designated as Empowerment
17Zones, or proposing additions to the list, the Department
18shall conduct a 60-day public comment process, in partnership
19with the other agencies, departments, and units of local
20government where beneficial for the purposes of this Section.
21The public comment process shall include, at a minimum, 2
22public hearings that are accessible to working residents,
23shall prioritize the solicitation of feedback from
24environmental justice communities and communities directly
25impacted by the Empowerment Zone designation, and shall
26provide for the submission of written comments through the

 

 

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1Internet.
2    Within 30 days after concluding the public comment
3process, the Department shall modify or finalize the proposed
4list of geographic regions that qualify as Empowerment Zones
5and submit the list to the Empowerment Zone Board for approval
6or modification as described in Section 5-20.
7    (f) Local government self-designation. After the
8Department submits its first list of proposed Empowerment
9Zones to the Board, units of local government may, on an
10ongoing basis, submit applications to the Department to
11designate an area wholly or partially in their jurisdiction as
12an Empowerment Zone if the Department has not proposed the
13region as a potential Empowerment Zone to the Board. Multiple
14units of local government may submit a joint application for
15designation if the proposed region or regions fall partially
16or wholly within their combined jurisdictions. A unit of local
17government may submit an application to the Department if:
18        (1) the area meets the criteria for designation as an
19    Empowerment Zone established in subsection (d); and
20        (2) the unit of local government has conducted at
21    least one public hearing within the proposed Zone area
22    considering all of the following questions: (A) whether to
23    create the Zone; (B) what local plans, tax incentives, and
24    other programs should be established in connection with
25    the zone; and (C) what the boundaries of the Zone should
26    be; public notice of the hearing shall be published in at

 

 

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1    least one newspaper of general circulation within the Zone
2    area, not more than 21 days nor less than 7 days before the
3    hearing.
4    An application submitted under this subsection (f) shall
5include a certified copy of the ordinance designating the
6proposed Zone; a map of the proposed Empowerment Zone, showing
7existing streets and highways; an analysis, and any
8appropriate supporting documents and statistics, demonstrating
9that the proposed zone area is qualified in accordance with
10subsection (d); a statement detailing any tax, grant, and
11other financial incentives or benefits, and any programs, to
12be provided by the municipality or county to business
13enterprises within the Zone, which are not otherwise provided
14throughout the municipality or county; a statement setting
15forth the economic development and planning objectives for the
16Zone; an estimate of the economic impact of the Zone,
17considering all of the tax incentives, financial benefits and
18programs contemplated, upon the revenues of the municipality
19or county; a specific definition of the applicant's local
20labor market area; a transcript of all public hearings on the
21Zone; and any additional information as the Department may by
22rule require.
23    Within 60 days after receiving an application from a unit
24of local government, the Department shall review the
25application to determine whether the designated area qualifies
26as an Empowerment Zone under this Section, and submit its

 

 

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1recommendation to the Empowerment Zone Board including all
2necessary information and records for the Board to review, as
3described in Section 5-20. Within 7 days after submitting the
4recommendation to the Board, the Department shall provide a
5copy of its recommendation to the applicant, including all
6supporting documents and information submitted to the Board.
7    (g) Application process. The Department shall develop an
8ongoing application process for Empowerment Zone applications
9by units of local government. The application process shall be
10open through January 1, 2050. The Department, or any
11predecessor of the Department, may extend the application
12process beyond that date if it deems it is necessary or prudent
13to accomplish the purpose of this Act.
14    (h) Length of designation. An Empowerment Zone designation
15lasts for 10 years from the effective date of the designation
16and shall be subject to review by the Board after 10 years for
17an additional 10-year designation beginning on the expiration
18date of the Empowerment Zone. During the review process, the
19Board shall consider the costs incurred by the State and units
20of local government as a result of benefits received by the
21Empowerment Zone.
22    (i) Emergency rulemaking. The Department has emergency
23rulemaking authority for the purpose of implementation of this
24Section until 12 months after the effective date of this Act as
25provided under Section 5-45 of the Illinois Administrative
26Procedure Act.
 

 

 

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1    Section 5-20. Empowerment Zone Board.
2    (a) An Empowerment Zone Board is hereby created within the
3Department.
4    (b) The Board shall consist of 9 voting members, one of
5whom shall be the Director of the Department, or his or her
6designee, who shall serve as chairperson; one of whom shall be
7the Director of Revenue, or his or her designee; 3 of whom
8shall be members appointed by the Governor, with the advice
9and consent of the Senate; one of whom shall be appointed by
10the Speaker of the House of Representatives; one of whom shall
11be appointed by the President of the Senate; one of whom shall
12be appointed by the Minority Leader of the House; and one of
13whom shall be appointed by the Minority Leader of the Senate.
14Designees shall be appointed within 60 days after a vacancy.
15No fewer than 2 of the members shall consist of low-income
16residents or residents of environmental justice communities.
17At least 2 of the Board members shall be representatives of
18organized labor. At least one member shall be a representative
19of a community with a generation or mine closure. At least one
20member shall be a representative of the owner or operator of a
21coal plant that either closed in the past 3 years or has
22announced a closure. At least one member shall be a
23representative of the owner or operator of a nuclear plant
24that either closed or has announced a closure. All meetings
25shall be accessible, with rotating locations, call-in options,

 

 

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1and materials and agendas circulated well in advance, and
2there shall also be opportunities for input outside of
3meetings from those with limited capacity and ability to
4attend, via one-on-one meetings, surveys, and calls.
5    Board members shall serve without compensation, but may be
6reimbursed for necessary expenses incurred in the performance
7of their duties from funds appropriated for that purpose. Each
8member appointed shall have at least 5 years of experience in
9business development, economic development, or workforce
10training. The Department shall provide administrative support
11to the Board, including the selection of a Department staff
12member to serve as a Board Liaison between the Department and
13the Advisory Board.
14    (c) All final actions by the Board pursuant to this
15subsection (c) shall require approval by a simple majority of
16the Board. The Board shall have the following duties:
17        (1) reviewing applications and extensions for
18    designation as an Empowerment Zone, including Department
19    recommendations, testimony from public hearings, public
20    comment, and supporting materials;
21        (2) voting to approve, disapprove, or modify
22    applications for designation and extensions as an
23    Empowerment Zone;
24        (3) the approval of tax credits under the Empowerment
25    Zone Tax Credit Act; and
26        (4) modifying applications for designation or

 

 

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1    extensions as an Empowerment Zone before approval.
2    (d) Within 60 days after submission of applications or tax
3credits, pursuant to subsection (c) of this Section, to the
4Board by the Department, the Board shall approve, disapprove,
5or modify applications for certification of regions as
6Empowerment Zones. If the Board does not take final action on a
7submission within 60 days after the submission, the
8application submitted by the Department shall be considered
9approved, and the regions proposed in the application shall be
10certified as Empowerment Zones.
 
11    Section 5-25. Incentives for business enterprises located
12within an Empowerment Zone.
13    (a) Business enterprises located in Empowerment Zones are
14eligible to receive an investment credit subject to the
15requirements of paragraph (1) of subsection (f) of Section 201
16of the Illinois Income Tax Act.
17    (b) Business enterprises are eligible to purchase building
18materials exempt from use and occupation taxes to be
19incorporated into their development projects within the
20Empowerment Zone when purchased from a retailer within the
21Empowerment Zone under Section 5k-5 of the Retailers'
22Occupation Tax Act.
23    (c) Business enterprises located in an Empowerment Zone
24that meet the qualifications of Section 9-222.1B of the Public
25Utilities Act are exempt, in part or in whole, from State and

 

 

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1local taxes on gas and electricity.
 
2    Section 5-30. 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 an 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 5-35. Supporting impacted communities.
11    (a) No later than December 1, 2021, the Department shall
12develop a process for accepting applications from units of
13local government included in Empowerment Zones to mitigate the
14impact of an annual reduction of 30% or more in property tax
15revenue or other direct payments, or both, from fossil fuel
16power plants, nuclear 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 5-70, 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, nuclear power
16    plant, or coal mine to the unit of local government from
17    the most recent 3 taxable years before the reduction or
18    cessation of operation of the 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 power plant or coal mine operation. The
25    Department may choose to consider budget information from
26    prior years if doing so allows the Department to better

 

 

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1    measure the revenue impacts of the energy transition.
2        (3) The Department shall not provide funding under
3    this Program that exceeds the amount specified in this
4    paragraph (3) to any local government unit. Each unit of
5    local government shall not be granted by the Department a
6    total amount of funding over the lifetime of this Program,
7    for each power plant or coal mine, that is greater than 5
8    times the average annual sum of property tax payments and
9    other direct payments from the power plant or coal mine to
10    the unit of local government, calculated based on the most
11    recent 3 taxable years that occurred before the reduction
12    or cessation of operation of the power plant or coal mine.
13        (4) The Department may develop a payment schedule that
14    phases out support over time, based on its analysis of
15    available present and anticipated future funding in the
16    Energy Community Reinvestment Fund or other reasons
17    consistent with the purposes of this Act.
18        (5) If the total amount of qualified proposals exceeds
19    the available present and anticipated future funding in
20    the Energy Community Reinvestment Fund, the Department may
21    prorate payments to units of local government, or
22    prioritize communities for investment based on severity of
23    impact and environmental justice screens in coordination
24    with the Commission on Environmental Justice, and input
25    from stakeholders. The Department shall allocate funding
26    in an equitable and effective manner. Nothing in this Act

 

 

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1    shall be interpreted to infer that units of local
2    government have a right to revenue replacement from the
3    State.
4        (6) At least once every 2 years following the
5    allocation of funds for this program, the Department shall
6    publish a document available online detailing the
7    allocation of funds, including a map that shows the
8    geographic distribution of the funds and the locations of
9    Empowerment Zones.
10    (c) The Department shall contact all units of local
11government in Empowerment Zones and provide information on the
12application process for funding under this Section and a
13reasonable estimate of total funding that will be available
14for this program. The Department shall request that
15applications for funding contain the information necessary for
16the Department to evaluate the fiscal impact of the energy
17transition on communities located in Empowerment Zones;
18however the Department shall allow for reasonable flexibility
19in the applications to accommodate local government units that
20may have less resources available to prepare an application.
21The Department shall, to the extent practical, assist local
22government units in the application process.
23    (d) The Department shall develop rules to implement the
24provisions of this Section.
 
25    Section 5-40. Empowerment Task Forces.

 

 

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1    (a) The Department and the Board shall work with local
2stakeholders in Empowerment Zones to support the convening of
3local Empowerment Task Forces.
4    (b) Local Empowerment Task Forces shall include a broad
5range of local stakeholders to inform transition needs and
6include, at a minimum, elected representatives from municipal
7and State governments, operators of local power plants or
8mines, multiple representatives from community-based
9organizations, local environmental, fish, or wildlife groups,
10organized labor, and the Illinois Environmental Protection
11Agency.
12    (c) The Board shall put forward requests for proposals for
13third-party facilitators for Task Forces in prioritized
14Empowerment Zones based on need and those facing recent or
15near-term retirements of plants or mines.
16    (d) The Department shall work with local Task Forces to
17develop local transition plans that identify economic,
18workforce, and environmental health needs with strategies to
19mitigate energy transition impacts and any accompanying
20funding requests from the Energy Community Reinvestment Fund.
21    (e) As part of developing local transition plans, the
22Department shall work with third-party facilitators and Task
23Force members to gather and incorporate public comment and
24feedback into a finalized transition plan.
 
25    Section 5-45. Energy Transition Workforce Commission.

 

 

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1    (a) The Energy Transition Workforce Commission is hereby
2created within the Department of Commerce and Economic
3Opportunity.
4    (b) The Commission shall consist of the following members:
5        (1) the Director of Commerce and Economic Opportunity;
6        (2) the Director of Labor, or his or her designee, who
7    shall serve as chairperson; and
8        (3) 5 members appointed by the Governor, with the
9    advice and consent of the Senate, of which at least one
10    shall be a representative of a local labor organization,
11    at least one shall be a resident of an environmental
12    justice community, at least one shall be a representative
13    of a national labor organization, and at least one shall
14    be a representative of the administrator of the workforce
15    training program described in subsection (b) of Section
16    16-108.13 of the Public Utilities Act.
17    Designees shall be appointed within 60 days after a
18vacancy.
19    (c) Members of the Commission shall serve without
20compensation, but may be reimbursed for necessary expenses
21incurred in the performance of their duties from funds
22appropriated for that purpose. The Department of Commerce and
23Economic Opportunity shall provide administrative support to
24the Commission.
25    (d) Within 240 days after the effective date of this Act,
26the Commission shall produce an Energy Transition Workforce

 

 

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1Report regarding the anticipated impact of the energy
2transition and a comprehensive set of recommendations to
3address changes to the Illinois workforce during the period of
42020 through 2050, or a later year. The report shall contain
5the following elements, designed to be used for the programs
6created in this Act:
7        (1) Information related to the impact on current
8    workers, including:
9            (A) a comprehensive accounting of all employees
10        who currently work in fossil fuel energy generation,
11        nuclear energy generation, and coal mining in the
12        State; this shall include information on their
13        location, employer, salary ranges, full-time or
14        part-time status, nature of their work, educational
15        attainment, union status, and other factors the
16        Commission finds relevant; the Commission shall keep a
17        confidential list of these employees and the
18        information necessary to identify them for the purpose
19        of their eligibility to participate in programs
20        designed for their benefit;
21            (B) the anticipated schedule of closures of fossil
22        fuel power plants, nuclear power plants, and coal
23        mines across the State; when information is
24        unavailable to provide exact data, the report shall
25        include approximations based upon the best available
26        information;

 

 

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1            (C) an estimate of worker impacts due to scheduled
2        closures, including layoffs, early retirements, salary
3        changes, and other factors the Commission finds
4        relevant; and
5            (D) the likely outcome for workers who are
6        employed by facilities that are anticipated to close
7        or have significant layoffs during their tenure or
8        lifetime.
9        (2) Information regarding impact on communities and
10    local governments, including:
11            (A) changes in the revenue for units of local
12        government in areas that currently or recently have
13        had a closure or reduction in operation of a fossil
14        fuel power plant, nuclear power plant, coal mine, or
15        related industry;
16            (B) environmental impacts in areas that currently
17        or recently have had fossil fuel power plants, coal
18        mines, nuclear power plants, or related industry; and
19            (C) economic impacts of the energy transition,
20        including, but not limited to, the supply chain
21        impacts of the energy transition shift toward new
22        energy sources across the State.
23        (3) Information on emerging industries and State
24    economic development opportunities in regions that have
25    historically been the site of fossil fuel power plants,
26    nuclear power plants, or coal mining.

 

 

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1    (e) Following the completion of each report, or if the
2Department finds that it is prudent to begin before the
3completion of a report, the Department shall coordinate with
4the Commission to create a comprehensive draft plan for
5designing, maintaining, and funding programs established under
6this Act, including the Energy Workforce Development Program
7created under Section 5-50, the Energy Community Development
8Program created under Section 5-55, and the Displaced Energy
9Workers Bill of Rights provided under Section 5-60. The draft
10plan shall include, at a minimum, the following information:
11        (1) A detailed accounting of the anticipated costs for
12    each program and the anticipated amount of funding that
13    will be provided for each program.
14        (2) Information on the locations at which each program
15    shall have services provided; if this information is not
16    yet known by the Department at the time of the plan's
17    drafting, the Department shall generally explain how they
18    intend to determine the program locations.
19    Within 240 days after the effective date of this Act, the
20Department shall publish the draft plan online. The Department
21shall take public comments on the draft plan for a period of no
22less than 45 days and publish the final plan within 60 days
23after the closing of the comment period.
24    (f) The Department shall periodically review its findings
25in the developed reports and make modifications to the report
26and programs based on new findings. The Department shall

 

 

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1conduct a comprehensive reevaluation of the report, and
2publish a modified version along with a new draft plan, on each
3of the following years following initial publication: 2023;
42027; 2030; 2035; 2040; and any year thereafter which the
5Department determines is necessary or prudent.
 
6    Section 5-50. Energy Workforce Development Program.
7    (a) The purpose of the Energy Workforce Development
8Program is to proactively assist energy workers in their
9search for economic opportunity.
10    (b) The Director of Commerce and Economic Opportunity
11shall design, develop, and administer the Energy Workforce
12Development Program. The Energy Workforce Development Program
13shall include the following elements:
14        (1) comprehensive career services for displaced energy
15    workers, including advising displaced energy workers
16    looking for new positions on finding new employment or
17    preparing for retirement;
18        (2) communication services to provide displaced energy
19    workers advance notice of any power plant or coal mine
20    closures that are likely to result in a loss of employment
21    for the energy worker;
22        (3) administrative assistance for displaced energy
23    workers in applying for programs provided by the State,
24    the federal government, nonprofit organizations, or other
25    programs that are designed to offer career or financial

 

 

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1    assistance;
2        (4) the creation and maintenance of a registry of all
3    persons in Illinois who qualify as an energy worker to use
4    for coordination with programs created under this Act or
5    other benefits for those workers, including all
6    information necessary or beneficial for the implementation
7    of this Act;
8        (5) the management of funding for services outlined in
9    this Section; and
10        (6) financial advice for displaced energy workers
11    designed to assist workers with retirement, a change in
12    positions, pursuing an education, or other goals that the
13    energy worker has identified.
14    (c) In administering the Energy Workforce Development
15Program, the Department shall develop and implement the
16Program with the following goals:
17        (1) to use the recommendations and information
18    contained in the report created under Section 5-45 to
19    proactively plan for each phase of the energy transition
20    in Illinois;
21        (2) to increase access to the services contained in
22    this Program by locating services in different regions of
23    the State as dictated by the anticipated schedule of power
24    plant and coal mine closures and regional economic
25    changes;
26        (3) to maximize the efficiency of resources used;

 

 

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1        (4) to design the Energy Workforce Development Program
2    to work in collaboration with the Displaced Energy Workers
3    Bill of Rights; and
4        (5) any other goals identified by the Department.
 
5    Section 5-55. Energy Community Development Program.
6    (a) The purpose of the Energy Community Development
7Program is to proactively assist Empowerment Zone communities
8in their search for economic opportunities leading up to and
9after the closure of a fossil fuel power plant, nuclear power
10plant, or coal mine.
11    (b) The Director of Commerce and Economic Opportunity
12shall, subject to appropriation, administer the Energy
13Community Development Program. In administering the Energy
14Community Development Program, the Department shall:
15        (1) assist local governments in Empowerment Zones in
16    finding private and public sector partners to invest in
17    regional development;
18        (2) assist units of local government in finding and
19    negotiating terms with businesses willing to relocate or
20    open new enterprises in regions impacted;
21        (3) provide coordination services to connect
22    organizations or persons seeking to use tax credits
23    created under Act with units of local government;
24        (4) conduct outreach and educational events for
25    private sector organizations for the purpose of attracting

 

 

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1    investment in Empowerment Zones; and
2        (5) gather and incorporate public comment and feedback
3    so that local knowledge, priorities, and strengths help
4    shape and guide private and public development.
5    (c) In administering the Energy Community Development
6Program, the Department shall develop and implement the
7Program with the following goals:
8        (1) to increase private sector development in
9    Empowerment Zones;
10        (2) to replace and improve employment opportunities in
11    Empowerment Zones for community members;
12        (3) to provide resources for Empowerment Zone
13    communities across the State, and avoid geographic
14    preferences in the allocation of resources; and
15        (4) to create a healthful environment for community
16    members in Empowerment Zones.
 
17    Section 5-60. Displaced Energy Workers Bill of Rights.
18    (a) The Department shall implement the Displaced Energy
19Workers Bill of Rights and shall be responsible for the
20implementation of the Displaced Energy Workers Bill of Rights
21programs and rights created under this Section. The Department
22shall provide the following benefits to displaced energy
23workers listed in paragraphs (1) through (4) of this
24subsection:
25        (1) Advance notice of power plant or coal mine

 

 

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1    closure.
2            (A) The Department shall notify all energy workers
3        of the upcoming closure of any qualifying facility as
4        far in advance of the scheduled closing date as it can.
5            (B) In providing the advance notice described in
6        this paragraph (1), the Department shall take
7        reasonable steps to ensure that all displaced energy
8        workers are educated on the various programs available
9        through the Department to assist with the energy
10        transition.
11        (2) Employment assistance and career services. The
12    Department shall provide displaced energy workers with
13    assistance in finding new sources of employment through
14    the Energy Workforce Development Program established in
15    this Act.
16        (3) Full-tuition scholarship for Illinois institutions
17    and trade schools.
18            (A) The Department shall provide any displaced
19        energy worker with a full-tuition scholarship to any
20        of the following programs: (i) public universities in
21        this State; (ii) trade schools in this State; (iii)
22        community college programs in this State; or (iv)
23        union training programs in this State. The Department
24        may set cost caps on the maximum amount of tuition that
25        may be funded.
26            (B) The Department shall provide information and

 

 

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1        consultation to displaced energy workers on the
2        various educational opportunities available through
3        this Program, and advise workers on which
4        opportunities meet their needs and preferences.
5            (C) Displaced energy workers who are eligible for
6        scholarships created under this Section by the date of
7        their enrollment shall be considered eligible for
8        scholarship funding for up to 4 years or until
9        completion of their degree or certification, whichever
10        is the shorter duration.
11        (4) Financial Planning Services. Displaced energy
12    workers shall be entitled to services as described in the
13    energy worker Programs in this subsection, including
14    financial planning services.
15        (5) Insurance Alternatives. Displaced energy workers
16    shall be entitled to 24 months of insurance coverage that
17    (A) costs no more than the average monthly premium paid by
18    the worker over the last 12 months and (B) offers the same
19    level of benefits, including, but not limited to,
20    coverage, in-network providers, deductibles, and
21    copayments covered during the previous 12 months.
22    (b) The owners of power plants with a nameplate capacity
23of greater than 300 megawatts and the owners of coal mines
24located in Illinois shall be required to comply with the
25requirements set out in this subsection (b). The owners shall
26be required to take the following actions:

 

 

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1        (1) provide employment information for energy workers;
2    prior to the closure of an electric generating unit or
3    mine, the owners of the power plant or mine shall provide
4    energy workers information on whether there are employment
5    opportunities provided by their employer; and
6        (2) 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 5-65. 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 5-70. 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 have access to the
9resources required for the execution of the programs in the
10Energy Community Reinvestment Act.
11    The intent of the General Assembly is that the Energy
12Community Reinvestment Fund is able to provide all funding for
13development programs created in the Energy Community
14Reinvestment Act, and that no additional charge is borne by
15the taxpayers or utility customers of Illinois absent a
16deficiency.
17    (b) The Energy Community Reinvestment Fund is created as a
18special fund in the State treasury to be used by the Department
19for purposes provided under this Section. The Fund shall be
20used to fund programs specified under subsection (c). The
21objective of the Fund is to provide transition benefits as
22described in this Act to displaced energy workers and to bring
23economic development to communities in this State in a manner
24that equitably maximizes economic opportunity in all
25communities by increasing efficiency of resource allocation

 

 

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1across the programs listed in subsection (c). The Department
2shall include a description of its proposed approach to the
3design, administration, implementation, and evaluation of the
4Fund, as part of the Energy Transition Workforce Plan
5described in this Act. Contracts that will be paid with moneys
6in the Fund shall be executed by the Department.
7    (c) The Department shall be responsible for the
8administration of the Fund and shall allocate funding on the
9basis of priorities established in this Section. Each year,
10the Department shall determine the available amount of
11resources in the Fund that can be allocated to the programs
12identified in this Section, and allocate the funding
13accordingly. The Department shall, to the extent practical,
14consider both the short-term and long-term costs of the
15programs and allocate, save, or invest funding so that the
16Department is able to cover both the short-term and long-term
17costs of these programs using projected revenue.
18    The available funding for each year shall be allocated
19from the Fund in the following order of priority:
20        (1) for costs related to the Energy Community
21    Development programs in this Act, up to $2,000,000;
22        (2) for costs related to the Energy Workforce
23    Development programs and the Displaced Energy Workers Bill
24    of Rights in this Act, including all programs created by
25    the Energy Transition Workforce Commission, up to
26    $13,000,000 annually; and

 

 

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1        (3) for costs, up to $100,000,000 annually, to support
2    units of local government in Empowerment Zones, as
3    described in Section 5-35.
4    (d) The Department shall, on an ongoing basis, seek out
5and apply for funding from alternative sources to cover the
6costs of these programs. Alternative sources may include the
7federal government, other State programs, funding provided
8through subsection (d-16) of Section 1-75 of the Illinois
9Power Agency Act, private foundations, donors, or other
10opportunities for funding. The Department shall, as described
11in subsection (c), use any additional funding obtained for
12these programs to reduce or eliminate any costs borne by
13taxpayers and utility customers.
14    (e) Notwithstanding any other law to the contrary, the
15Energy Community Reinvestment Fund is not subject to sweeps,
16administrative chargebacks, or any other fiscal or budgetary
17maneuver that would in any way transfer any amounts from the
18Energy Community Reinvestment Fund into any other fund of the
19State.
20    (f) The Department is granted all powers necessary for the
21implementation of this Section.
 
22    Section 5-75. Administrative review. All final
23administrative decisions, including, but not limited to,
24funding allocation and rules issued by the Department under
25this Act are subject to judicial review under the

 

 

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1Administrative Review Law. No action may be commenced under
2this Section prior to 60 days after the complainant has given
3notice in writing of the action to the Department.
 
4
Article 10. Empowerment Zone Tax Credit Act

 
5    Section 10-1. Short title. This Article may be cited as
6the Empowerment Zone Tax Credit Act. References in this
7Article to "this Act" mean this Article.
 
8
Part 1.

 
9    Section 10-100. Definitions. As used in this Part 1:
10    "Applicant" means a person that is operating a business
11located within the State of Illinois and has applied for an
12income tax credit through a program under this Act.
13    "Basic wage" means compensation for employment that meets
14the prevailing wage standards as defined by the Department.
15    "Certificate" means the tax credit certificate issued by
16the Department under Section 10-125.
17    "Certificate of eligibility" means the certificate issued
18by the Department under Section 10-110.
19    "Credit" means the amount awarded by the Department to an
20applicant by issuance of a certificate under Section 10-125
21for each new full-time equivalent employee hired or job
22created.

 

 

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

 

 

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1    "New employee" means a full-time employee:
2        (1) who first became employed by an applicant within
3    the incentive period whose hire results in a net increase
4    in the applicant's full-time Illinois employees and who is
5    receiving a prevailing wage as compensation; and
6        (2) who was previously employed in a fossil fuel power
7    plant, nuclear power plant, or coal mine in the State of
8    Illinois that has since closed.
9    "New employee" does not include:
10        (1) a person who was previously employed in Illinois
11    by the applicant or a related member, unless the new
12    employee is hired for site remediation work; or
13        (2) a person who has a direct or indirect ownership
14    interest of at least 5% in the profits, capital, or value
15    of the applicant or a related member; or
16        (3) a person who has been hired to assist in the
17    production of fossil fuel derived energy directly or
18    indirectly, unless that person has been hired to assist in
19    the deconstruction of a fossil fuel power plant, the
20    deconstruction of a coal mine, the remediation of a site
21    formerly used for fossil fuel power production, or the
22    remediation of a coal mine.
23    "Noncompliance date" means, in the case of an applicant
24that is not complying with the requirements of this Act, the
25day following the last date upon which the taxpayer was in
26compliance with the requirements of this Act, as determined by

 

 

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1the Director under Section 10-135.
2    "Professional Employer Organization" has the same meaning
3as ascribed to that term under Section 5-5 of the Economic
4Development for a Growing Economy Tax Credit Act.
5"Professional Employer Organization" does not include a day
6and temporary labor service agency regulated under the Day and
7Temporary Labor Services Act.
8    "Related member" means a person that, with respect to the
9applicant's annual incentive period, is any one of the
10following:
11        (1) An individual, if the individual and the members
12    of the individual's family, as defined in Section 318 of
13    the Internal Revenue Code, own directly, indirectly,
14    beneficially, or constructively, in the aggregate, at
15    least 50% of the value of the outstanding profits,
16    capital, stock, or other ownership interest in the
17    applicant.
18        (2) A partnership, estate, or trust and any partner or
19    beneficiary, if the partnership, estate, or trust and its
20    partners or beneficiaries own directly, indirectly,
21    beneficially, or constructively, in the aggregate, at
22    least 50% of the profits, capital, stock, or other
23    ownership interest in the applicant.
24        (3) A corporation, and any party related to the
25    corporation, in a manner that would require an attribution
26    of stock from the corporation under the attribution rules

 

 

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1    of Section 318 of the Internal Revenue Code, if the
2    applicant and any other related member own, in the
3    aggregate, directly, indirectly, beneficially, or
4    constructively, at least 50% of the value of the
5    corporation's outstanding stock.
6        (4) A corporation and any party related to that
7    corporation in a manner that would require an attribution
8    of stock from the corporation to the party or from the
9    party to the corporation under the attribution rules of
10    Section 318 of the Internal Revenue Code, if the
11    corporation and all such related parties own, in the
12    aggregate, at least 50% of the profits, capital, stock, or
13    other ownership interest in the applicant.
14        (5) A person to or from whom there is attribution of
15    stock ownership in accordance with subsection (e) of
16    Section 1563 of the Internal Revenue Code, except that for
17    purposes of determining whether a person is a related
18    member under this paragraph (5):
19            (A) stock owned, directly or indirectly, by or for
20        a partnership shall be considered as owned by any
21        partner having an interest of 20% or more in either the
22        capital or profits of the partnership in proportion to
23        his or her interest in capital or profits, whichever
24        such proportion is the greater;
25            (B) stock owned, directly or indirectly, by or for
26        an estate or trust shall be considered as owned by any

 

 

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1        beneficiary who has an actuarial interest of 20% or
2        more in such stock, to the extent of such actuarial
3        interest. For purposes of this subparagraph, the
4        actuarial interest of each beneficiary shall be
5        determined by assuming the maximum exercise of
6        discretion by the fiduciary in favor of such
7        beneficiary and the maximum use of such stock to
8        satisfy his or her rights as a beneficiary; and
9            (C) stock owned, directly or indirectly, by or for
10        a corporation shall be considered as owned by any
11        person who owns 20% or more in value of its stock in
12        that proportion which the value of the stock which the
13        person so owns bears to the value of all the stock in
14        the corporation.
 
15    Section 10-105. Powers of the Department. The Department,
16in addition to those powers granted under the Civil
17Administrative Code of Illinois, is granted and shall have all
18the powers necessary or convenient to carry out and effectuate
19the purposes and provisions of this Act, including, but not
20limited to, power and authority to:
21        (1) Adopt rules deemed necessary and appropriate for
22    the administration of this Act; establish forms for
23    applications, notifications, contracts, or any other
24    agreements; and accept applications at any time during the
25    year and require that all applications be submitted

 

 

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1    electronically through the Internet.
2        (2) Provide guidance and assistance to applicants
3    under the provisions of this Act, and cooperate with
4    applicants to promote, foster, and support job creation
5    within this State.
6        (3) Enter into agreements and memoranda of
7    understanding for participation of and engage in
8    cooperation with agencies of the federal government, units
9    of local government, universities, research foundations or
10    institutions, regional economic development corporations,
11    or other organizations for the purposes of this Act.
12        (4) Gather information and conduct inquiries, in the
13    manner and by the methods it deems desirable, including,
14    without limitation, gathering information with respect to
15    applicants for the purpose of making any designations or
16    certifications necessary or desirable or to gather
17    information in furtherance of the purposes of this Act.
18        (5) Establish, negotiate, and effectuate any term,
19    agreement, or other document with any person necessary or
20    appropriate to accomplish the purposes of this Act, and
21    consent, subject to the provisions of any agreement with
22    another party, to the modification or restructuring of any
23    agreement to which the Department is a party.
24        (6) Provide for sufficient personnel to permit
25    administration, staffing, operation, and related support
26    required to adequately discharge its duties and

 

 

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

 

 

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1    conditions determined by the Director to be appropriate,
2    real or personal property that the Department may recover
3    as a result of these actions.
 
4    Section 10-110. Certificate of eligibility for tax credit.
5    (a) An applicant that has hired a former energy worker as a
6new employee during the incentive period may apply for a
7certificate of eligibility for the credit with respect to that
8position on or after the date of hire of the new employee. The
9date of hire shall be the first day on which the employee
10begins providing services for basic wage compensation.
11    (b) An applicant may apply for a certificate of
12eligibility for the credit for more than one new employee on or
13after the date of hire of each qualifying new employee.
14    (c) After receipt of an application under this Section,
15the Department shall issue a certificate of eligibility to the
16applicant that states the following:
17        (1) the date and time on which the application was
18    received by the Department and an identifying number
19    assigned to the applicant by the Department;
20        (2) the maximum amount of the credit the applicant
21    could potentially receive under this Act with respect to
22    the new employees listed on the application; and
23        (3) the maximum amount of the credit potentially
24    allowable on certificates of eligibility issued for
25    applications received prior to the application for which

 

 

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1    the certificate of eligibility is issued.
 
2    Section 10-115. Tax credit.
3    (a) Subject to the conditions set forth in this Act, an
4applicant is entitled to a credit against payment of taxes
5withheld under Section 704A of the Illinois Income Tax Act:
6        (1) for former energy workers hired as new employees
7    who the applicant hires and retains for a minimum of one
8    year; and
9        (2) in the amount of:
10            (A) 30% of the salary paid to the new employee for
11        employees hired and retained for between the time of
12        hiring and one year;
13            (B) 25% of the salary paid to the new employee for
14        employees hired and retained between one year and 2
15        years; and
16            (C) 20% of the salary paid to the new employee for
17        employees hired and retained between 2 years and 3
18        years.
19    (b) The Department shall make credit awards under this Act
20to further job creation.
21    (c) The credit shall be claimed for the first calendar
22year ending on or after the date on which the certificate is
23issued by the Department.
24    (d) The net increase in full-time Illinois employees,
25measured on an annual full-time equivalent basis, shall be the

 

 

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

 

 

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1been contracted to issue W-2s and make payment of taxes
2withheld under Section 704A of the Illinois Income Tax Act for
3new employees to retain the benefit of tax credits to which the
4applicant is otherwise entitled under this Act.
 
5    Section 10-120. Maximum amount of credits allowed. The
6Department shall limit the monetary amount of credits awarded
7under this Act to no more than $25,000,000 annually during the
8incentive period. If applications for a greater amount are
9received, credits shall be allowed on a first-come,
10first-served basis, based on the date on which each properly
11completed application for a certificate of eligibility is
12received by the Department. If more than one certificate of
13eligibility is received on the same day, the credits shall be
14awarded based on the time of submission for that particular
15day.
 
16    Section 10-125. Application for award of tax credit; tax
17credit certificate.
18    (a) On or after the conclusion of the 12-month period, or
19other period, after a new employee has been hired, for the
20purposes of subsection (a) of Section 10-115, an applicant
21shall file with the Department an application for award of a
22credit. The application shall include the following:
23        (1) the names, Social Security numbers, job
24    descriptions, salary or wage rates, and dates of hire of

 

 

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1    the new employees with respect to whom the credit is being
2    requested;
3        (2) a certification that each new employee listed has
4    been retained on the job for at least one year from the
5    date of hire;
6        (3) the number of new employees hired by the applicant
7    during the incentive period;
8        (4) the net increase in the number of full-time
9    Illinois employees of the applicant, including the new
10    employees listed in the request, between the beginning of
11    the incentive period and the dates on which the new
12    employees listed in the request were hired;
13        (5) an agreement that the Director is authorized to
14    verify with the appropriate State agencies the information
15    contained in the request before issuing a certificate to
16    the applicant; and
17        (6) any other information the Department determines to
18    be appropriate.
19    (b) Although an application may be filed at any time after
20the conclusion of the 12-month period after a new employee was
21hired, an application filed more than 90 days after the
22earliest date on which it could have been filed shall not be
23awarded any credit if, prior to the date it is filed, the
24Department has received applications under this Section for
25credits totaling more than $30,000,000.
26    (c) The Department shall issue a certificate to each

 

 

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1applicant awarded a credit under this Act. The certificate
2shall include the following:
3        (1) the name and taxpayer identification number of the
4    applicant;
5        (2) the date on which the certificate is issued;
6        (3) the credit amount that will be allowed; and
7        (4) any other information the Department determines to
8    be appropriate.
 
9    Section 10-130. Submission of tax credit certificate to
10the Department of Revenue. An applicant claiming a credit
11under this Act shall submit to the Department of Revenue a copy
12of each certificate issued under Section 10-125 with the first
13tax return for which the credit shown on the certificate is
14claimed. Failure to submit a copy of the certificate with the
15applicant's tax return shall not invalidate a claim for a
16credit.
 
17    Section 10-135. Administrative review.
18    (a) If the Director determines that an applicant who has
19received a credit under this Act is not complying with the
20requirements of this Act, the Director shall provide notice to
21the applicant of the alleged noncompliance, and allow the
22taxpayer a hearing under the provisions of the Illinois
23Administrative Procedure Act. If, after the notice and
24hearing, the Director determines that noncompliance exists,

 

 

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1the Director shall issue to the Department of Revenue notice
2to that effect, and state the date of noncompliance.
3    (b) All final administrative decisions, including, but not
4limited to, funding allocation and rules issued by the
5Department under this Act are subject to judicial review under
6the Administrative Review Law. No action may be commenced
7under this Section prior to 60 days after the complainant has
8given notice in writing of the action to the Department.
 
9    Section 10-140. Rules. The Department may adopt rules
10necessary to implement this Part 1. The rules may provide for
11recipients of credits under this Part 1 to be charged fees to
12cover administrative costs of the tax credit program.
 
13
Part 2.

 
14    Section 10-200. Definitions. As used in this Part 2:
15    "Agreement" means the agreement between a taxpayer and the
16Department entered into for a tax credit awarded under Section
1710-210.
18    "Applicant" means a taxpayer operating a business
19enterprise, as determined under the Energy Community
20Reinvestment Act, located within or that the business
21enterprise plans to locate within an Empowerment Zone.
22"Applicant" does not include a taxpayer who closes or
23substantially reduces an operation at one location in this

 

 

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1State and relocates substantially the same operation to a
2location in an Empowerment Zone. A taxpayer is not prohibited
3from expanding its operations at a location in an Empowerment
4Zone, provided that existing operations of a similar nature
5located within the State are not closed or substantially
6reduced. A taxpayer is also not prohibited from moving
7operations from one location in this State to an Empowerment
8Zone for the purpose of expanding the operation provided that
9the Department determines that expansion cannot reasonably be
10accommodated within the municipality in which the business is
11located, or in the case of a business located in an
12incorporated area of the county, within the county in which
13the business is located, after conferring with the chief
14elected official of the municipality or county and taking into
15consideration any evidence offered by the municipality or
16county regarding the ability to accommodate expansion within
17the municipality or county.
18    "Board" means the Empowerment Zone Board created under
19Section 5-20 of the Illinois Energy Community Reinvestment
20Act.
21    "Credit" means the amount agreed to between the Department
22and the Applicant under this Act, but not to exceed the lesser
23of: (1) the sum of (i) 50% of the incremental income tax
24attributable to new employees at the applicant's project and
25(ii) 10% of the training costs of new employees; or (2) 100% of
26the incremental income tax attributable to new employees at

 

 

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1the applicant's project. If the project is located in an
2underserved area, then the amount of the credit may not exceed
3the lesser of: (1) the sum of (i) 75% of the incremental income
4tax attributable to new employees at the applicant's project
5and (ii) 10% of the training costs of new employees; or (2)
6100% of the incremental income tax attributable to new
7employees at the applicant's project. If an applicant agrees
8to hire the required number of new employees, then the maximum
9amount of the credit for that applicant may be increased by an
10amount not to exceed 25% of the incremental income tax
11attributable to retained employees at the applicant's project;
12provided that, in order to receive the increase for retained
13employees, the applicant must provide the additional evidence
14required under paragraph (3) of subsection (c) of Section
1510-215.
16    "Department" means the Department of Commerce and Economic
17Opportunity.
18    "Director" means the Director of Commerce and Economic
19Opportunity.
20    "Full-time employee" means an individual who is employed
21for consideration for at least 35 hours each week or who
22renders any other standard of service generally accepted by
23industry custom or practice as full-time employment. An
24individual for whom a W-2 is issued by a Professional Employer
25Organization is a full-time employee if employed in the
26service of the applicant for consideration for at least 35

 

 

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1hours each week or who renders any other standard of service
2generally accepted by industry custom or practice as full-time
3employment to the applicant.
4    "Incremental income tax" means the total amount withheld
5during the taxable year from the compensation of new employees
6and, if applicable, retained employees under Article 7 of the
7Illinois Income Tax Act arising from employment at a project
8that is the subject of an agreement.
9    "New employee" means a full-time employee first employed
10by a taxpayer in the project that is the subject of an
11agreement and who is hired after the taxpayer enters into the
12agreement.
13    "New employee" does not include:
14        (1) an employee of the taxpayer who performs a job
15    that was previously performed by another employee, if that
16    job existed for at least 6 months before hiring the
17    employee;
18        (2) an employee of the taxpayer who was previously
19    employed in Illinois by a related member of the taxpayer
20    and whose employment was shifted to the taxpayer after the
21    taxpayer entered into the agreement; or
22        (3) a child, grandchild, parent, or spouse, other than
23    a spouse who is legally separated from the individual, of
24    any individual who has a direct or an indirect ownership
25    interest of at least 5% in the profits, capital, or value
26    of the taxpayer.

 

 

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1    Notwithstanding any other provisions of this Section, an
2employee may be considered a new employee under the agreement
3if the employee performs a job that was previously performed
4by an employee who was: (i) treated under the agreement as a
5new employee; and (ii) promoted by the taxpayer to another
6job.
7    Notwithstanding any other provisions of this Section, the
8Department may award a credit to an applicant with respect to
9an employee hired prior to the date of the agreement if: (i)
10the applicant is in receipt of a letter from the Department
11stating an intent to enter into a credit agreement; (ii) the
12letter described in item (i) of this paragraph is issued by the
13Department not later than 15 days after the effective date of
14this Act; and (iii) the employee was hired after the date the
15letter described in item (i) of this paragraph was issued.
16    "Pass-through entity" means an entity that is exempt from
17the tax under subsection (b) or (c) of Section 205 of the
18Illinois Income Tax Act.
19    "Related member" means a person that, with respect to the
20taxpayer during any portion of the taxable year, is any one of
21the following:
22        (1) An individual stockholder, if the stockholder and
23    the members of the stockholder's family, as defined in
24    Section 318 of the Internal Revenue Code, own directly,
25    indirectly, beneficially, or constructively, in the
26    aggregate, at least 50% of the value of the taxpayer's

 

 

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1    outstanding stock.
2        (2) A partnership, estate, or trust and any partner or
3    beneficiary, if the partnership, estate, or trust, and its
4    partners or beneficiaries own directly, indirectly,
5    beneficially, or constructively, in the aggregate, at
6    least 50% of the profits, capital, stock, or value of the
7    taxpayer.
8        (3) A corporation, and any party related to the
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 taxpayer
13    owns directly, indirectly, beneficially, or constructively
14    at least 50% of the value of the corporation's outstanding
15    stock.
16        (4) A corporation and any party related to that
17    corporation in a manner that would require an attribution
18    of stock from the corporation to the party or from the
19    party to the corporation under the attribution rules of
20    Section 318 of the Internal Revenue Code, if the
21    corporation and all such related parties own in the
22    aggregate at least 50% of the profits, capital, stock, or
23    value of the taxpayer.
24        (5) A person to or from whom there is attribution of
25    stock ownership in accordance with subsection (e) of
26    Section 1563 of the Internal Revenue Code, except that for

 

 

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1    purposes of determining whether a person is a related
2    member under this paragraph (5):
3            (A) stock owned, directly or indirectly, by or for
4        a partnership shall be considered as owned by any
5        partner having an interest of 20% or more in either the
6        capital or profits of the partnership in proportion to
7        his or her interest in capital or profits, whichever
8        such proportion is the greater;
9            (B) stock owned, directly or indirectly, by or for
10        an estate or trust shall be considered as owned by any
11        beneficiary who has an actuarial interest of 20% or
12        more in such stock, to the extent of such actuarial
13        interest. For purposes of this subparagraph, the
14        actuarial interest of each beneficiary shall be
15        determined by assuming the maximum exercise of
16        discretion by the fiduciary in favor of such
17        beneficiary and the maximum use of such stock to
18        satisfy his or her rights as a beneficiary; and
19            (C) stock owned, directly or indirectly, by or for
20        a corporation shall be considered as owned by any
21        person who owns 20% or more in value of its stock in
22        that proportion which the value of the stock which the
23        person so owns bears to the value of all the stock in
24        the corporation.
25    "Taxpayer" means an individual, corporation, partnership,
26or other entity that has any Illinois income tax liability.

 

 

10200SB1100sam001- 54 -LRB102 04924 SPS 24488 a

1    "Underserved area" means a geographic area that meets one
2or more of the following conditions:
3        (1) the area has a poverty rate of at least 20%
4    according to the latest federal decennial census;
5        (2) 75% or more of the children in the area
6    participate in the federal free lunch program according to
7    reported statistics from the State Board of Education;
8        (3) at least 20% of the households in the area receive
9    assistance under the Supplemental Nutrition Assistance
10    Program; or
11        (4) the area has an average unemployment rate, as
12    determined by the Department of Employment Security, that
13    is more than 120% of the national unemployment average, as
14    determined by the United States Department of Labor, for a
15    period of at least 2 consecutive calendar years preceding
16    the date of the application.
 
17    Section 10-205. Powers of the Department. The Department,
18in addition to those powers granted under the Civil
19Administrative Code of Illinois and Part 1 of this Act, is
20granted and has all the powers necessary or convenient to
21carry out and effectuate the purposes and provisions of this
22Act, including, but not limited to, power and authority to:
23        (1) Adopt rules deemed necessary and appropriate for
24    the administration of programs; 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.
3        (2) Provide and assist taxpayers pursuant to the
4    provisions of this Act, and cooperate with taxpayers that
5    are parties to agreements to promote, foster, and support
6    economic development, capital investment, and job creation
7    or retention within the Empowerment Zone.
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 as it deems desirable,
16    including, without limitation, gathering information with
17    respect to applicants for the purpose of making any
18    designations or certifications necessary or desirable or
19    to gather information to assist the Board with any
20    recommendation or guidance in the furtherance of the
21    purposes of this Act.
22        (5) Establish, negotiate and effectuate any term,
23    agreement or other document with any person, necessary or
24    appropriate to accomplish the purposes of this Act, and
25    consent, subject to the provisions of any agreement with
26    another party, to the modification or restructuring of any

 

 

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1    agreement to which the Department is a party.
2        (6) Fix, determine, charge, and collect any premiums,
3    fees, charges, costs, and expenses from applicants,
4    including, without limitation, any application fees,
5    commitment fees, program fees, financing charges, or
6    publication fees as deemed appropriate to pay expenses
7    necessary or incident to the administration, staffing, or
8    operation in connection with the Department's or Board's
9    activities under this Act, or for preparation,
10    implementation, and enforcement of the terms of the
11    agreement, or for consultation, advisory and legal fees,
12    and other costs. All fees and expenses incident thereto
13    shall be the responsibility of the applicant.
14        (7) Provide for sufficient personnel to permit
15    administration, staffing, operation, and related support
16    required to adequately discharge its duties and
17    responsibilities described in this Act from funds made
18    available through charges to applicants or from funds as
19    may be appropriated by the General Assembly for the
20    administration of this Act.
21        (8) Require applicants, upon written request, to issue
22    any necessary authorization to the appropriate federal,
23    State, or local authority for the release of information
24    concerning a project being considered under the provisions
25    of this Act, with the information requested to include,
26    but not be limited to, financial reports, returns, or

 

 

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1    records relating to the taxpayer or its project.
2        (9) Require that a taxpayer shall at all times keep
3    proper books of record and account in accordance with
4    generally accepted accounting principles consistently
5    applied, with the books, records, or papers related to the
6    agreement in the custody or control of the taxpayer open
7    for reasonable Department inspection and audits, and
8    including, without limitation, the making of copies of the
9    books, records, or papers, and the inspection or appraisal
10    of any of the taxpayer or project assets.
11        (10) Take whatever actions are necessary or
12    appropriate to protect the State's interest in the event
13    of bankruptcy, default, foreclosure, or noncompliance with
14    the terms and conditions of financial assistance or
15    participation required under this Act, including the power
16    to sell, dispose, lease, or rent, upon terms and
17    conditions determined by the Director to be appropriate,
18    real or personal property that the Department may receive
19    as a result of these actions.
 
20    Section 10-210. Tax credit awards.
21    (a) Subject to the conditions set forth in this Act, a
22taxpayer is entitled to a credit against or, as described in
23subsection (g), a payment toward taxes imposed pursuant to
24subsections (a) and (b) of Section 201 of the Illinois Income
25Tax Act that may be imposed on the taxpayer for a taxable year

 

 

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1beginning on or after January 1, 2019, if the taxpayer is
2awarded a credit by the Department under this Act for that
3taxable year.
4    (b) The Department shall make credit awards under this Act
5to foster job creation and the development of businesses in
6Empowerment Zones.
7    (c) A person that proposes a project to create new jobs and
8to invest in the development of a capital investment project
9in an Empowerment Zone must enter into an agreement with the
10Department for the credit under this Act.
11    (d) The credit shall be claimed for the taxable years
12specified in the agreement.
13    (e) The credit shall not exceed the incremental income tax
14attributable to the project that is the subject of the
15agreement.
16    (f) Nothing herein shall prohibit a tax credit award to an
17applicant that uses a Professional Employer Organization if
18all other award criteria are satisfied.
19    (g) A pass-through entity that has been awarded a credit
20under this Act, its shareholders, or its partners may treat
21some or all of the credit awarded under this Act as a tax
22payment for purposes of the Illinois Income Tax Act. In no
23event shall the amount of the award credited under this Act
24exceed the Illinois income tax liability of the pass-through
25entity or its shareholders or partners for the taxable year.
26    For the purposes of this subsection (g), "tax payment"

 

 

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1means a payment as described in Article 6 or Article 8 of the
2Illinois Income Tax Act or a composite payment made by a
3pass-through entity on behalf of any of its shareholders or
4partners to satisfy such shareholders' or partners' taxes
5imposed pursuant to subsections (a) and (b) of Section 201 of
6the Illinois Income Tax Act.
 
7    Section 10-215. Application for a project to create and
8retain new jobs and to develop new business enterprises.
9    (a) Any business enterprise proposing a capital investment
10project located or planned to be located in an Empowerment
11Zone may request consideration for designation of its project,
12by formal written letter of request or by formal application
13to the Department, in which the applicant states its intent to
14make at least a specified level of investment and intends to
15hire or retain a specified number of full-time employees at a
16designated location in Illinois. As circumstances require, the
17Department may require a formal application from an applicant
18and a formal letter of request for assistance.
19    (b) In order to qualify for credits under this Act, an
20applicant's project must:
21        (1) if the applicant has more than 100 employees,
22    involve an investment of at least $2,500,000 in capital
23    improvements to be placed in service within an Empowerment
24    Zone as a direct result of the project. If the applicant
25    has 100 or fewer employees, then there is no capital

 

 

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1    investment requirement; and
2        (2) if the applicant has more than 100 employees,
3    employ a number of new employees in the Empowerment Zone
4    equal to the lesser of: (A) 10% of the number of full-time
5    employees employed by the applicant world-wide on the date
6    the application is filed with the Department; or (B) 50
7    new employees. If the applicant has 100 or fewer
8    employees, employ a number of new employees in the State
9    equal to the lesser of: (A) 5% of the number of full-time
10    employees employed by the applicant world-wide on the date
11    the application is filed with the Department; or (B) 50
12    new employees.
13    (c) After receipt of an application, the Department shall
14review the application, make inquiries, and conduct studies in
15the manner and by the methods as it deems desirable, and
16consult with and make a recommendation to the Empowerment Zone
17Board created under the Energy Community Reinvestment Act. The
18Department and the Board shall make its recommendations and
19approvals based on whether they determine that all of the
20following conditions exist:
21        (1) The applicant's project will make the required
22    investment in the State and the applicant intends to hire
23    the required number of new employees in Illinois as a
24    result of that project, as described in this Act.
25        (2) The applicant's project is economically sound and
26    will benefit the people of the State of Illinois by

 

 

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1    increasing opportunities for employment and strengthening
2    the economy of Illinois.
3        (3) That, if not for the credit, the project would not
4    occur in Illinois or in the Empowerment Zone, which may be
5    demonstrated by evidence that receipt of the credit is
6    essential to the applicant's decision to create new jobs
7    in the State, such as the magnitude of the cost
8    differential between Illinois and a competing state.
9        (4) The political subdivisions affected by the project
10    have committed local incentives or other support with
11    respect to the project, considering local ability to
12    assist.
13        (5) Awarding the credit will result in an overall
14    positive fiscal impact to the State, as certified by the
15    Board using the best available data.
16        (6) The credit is not prohibited by Section 10-220.
17    (d) After approval by the Board, the Department may enter
18into an agreement with the applicant.
 
19    Section 10-220. Relocation of jobs to Empowerment Zone. A
20taxpayer is not entitled to claim the credit provided by this
21Act with respect to any jobs that the taxpayer relocates from
22one site in Illinois to another site in an Empowerment Zone. A
23taxpayer with respect to a qualifying project certified under
24the Corporate Headquarters Relocation Act, however, is not
25subject to the requirements of this Section, but is

 

 

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1nevertheless considered an applicant for purposes of this Act.
2Moreover, any full-time employee of an eligible business
3enterprise relocated to an Empowerment Zone in connection with
4that qualifying project is deemed to be a new employee for
5purposes of this Act. Determinations under this Section shall
6be made by the Department.
 
7    Section 10-225. Determination of the amount of credit. In
8determining the amount of credit that should be awarded, the
9Board shall provide guidance on, and the Department shall take
10into consideration, all of the following factors:
11        (1) the number and location of jobs created and
12    retained in relation to the economy of the Empowerment
13    Zone where the projected investment is to occur;
14        (2) the potential impact on the economy of the
15    Empowerment Zone;
16        (3) the incremental payroll attributable to the
17    project;
18        (4) the capital investment attributable to the
19    project;
20        (5) the amount of the average wage and benefits paid
21    by the applicant in relation to the wage and benefits of
22    the Empowerment Zone;
23        (6) the costs to Illinois and the affected political
24    subdivisions with respect to the project; and
25        (7) the financial assistance that is otherwise

 

 

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1    provided by Illinois and the affected political
2    subdivisions.
 
3    Section 10-230. Amount and duration of credit.
4    (a) The Department shall determine the amount and duration
5of the credit awarded under this Act. The duration of the
6credit may not exceed 10 taxable years. The credit may be
7stated as a percentage of the incremental income tax
8attributable to the applicant's project and may include a
9fixed dollar limitation. An agreement for the credit must be
10finalized and signed by all parties while the area in which the
11project is located is designated an Empowerment Zone. The
12credit may last longer than the applicable Empowerment Zone
13designation. Agreements entered into prior to the
14de-designation of an Empowerment Zone shall be honored for the
15length of the agreement.
16    (b) Notwithstanding subsection (a), and except as the
17credit may be applied in a carryover year as otherwise
18provided in this subsection (b), the credit may be applied
19against the State income tax liability in more than 10 taxable
20years, but not in more than 15 taxable years for an eligible
21green energy enterprise that: (i) qualifies under this Act and
22the Corporate Headquarters Relocation Act and has in fact
23undertaken a qualifying project within the time frame
24specified by the Department of Commerce and Economic
25Opportunity under that Act; and (ii) applies against its State

 

 

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1income tax liability, during the entire 15-year period, no
2more than 60% of the maximum credit per year that would
3otherwise be available under this Act.
4    Any credit that is unused in the year the credit is
5computed may be carried forward and applied to the tax
6liability of the 5 taxable years following the excess credit
7year. The credit shall be applied to the earliest year for
8which there is a tax liability. If there are credits from more
9than one tax year that are available to offset a liability, the
10earlier credit shall be applied first.
 
11    Section 10-235. Contents of agreements with applicants.
12The Department shall enter into an agreement with an applicant
13that is awarded a credit under this Act.
 
14    Section 10-240. Certificate of verification; submission to
15the Department of Revenue. A taxpayer claiming a credit under
16this Act shall submit to the Department of Revenue a copy of
17the Director's certificate of verification under this Act for
18the taxable year. Failure to submit a copy of the certificate
19with the taxpayer's tax return shall not invalidate a claim
20for a credit.
 
21    Section 10-245. Supplier diversity. Each taxpayer claiming
22a credit under this Act shall, no later than April 15 of each
23taxable year for which the taxpayer claims a credit under this

 

 

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1Act, submit to the Department of Commerce and Economic
2Opportunity an annual report containing the information
3described in subsections (b), (c), (d), and (e) of Section
45-117 of the Public Utilities Act. Those reports shall be
5submitted in the form and manner required by the Department of
6Commerce and Economic Opportunity.
 
7    Section 10-250. Pass-through entity. The shareholders or
8partners of a taxpayer that is a pass-through entity shall be
9entitled to the credit allowed under the agreement. The credit
10is in addition to any credit to which a shareholder or partner
11is otherwise entitled under a separate agreement under this
12Act. A pass-through entity and a shareholder or partner of the
13pass-through entity may not claim more than one credit under
14the same agreement.
 
15    Section 10-255. Rules. The Department may adopt rules
16necessary to implement this Part 2. The rules may provide for
17recipients of credits under this Part 2 to be charged fees to
18cover administrative costs of the tax credit program. Fees
19collected shall be deposited into the Energy Community
20Reinvestment Fund.
 
21    Section 10-260. Program terms and conditions.
22    (a) Any documentary materials or data made available or
23received by any member of a board or any agent or employee of

 

 

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1the Department shall be deemed confidential and shall not be
2deemed public records to the extent that the materials or data
3consists of trade secrets, commercial or financial information
4regarding the operation of the business conducted by the
5applicant for or recipient of any tax credit under this Act, or
6any information regarding the competitive position of a
7business in a particular field of endeavor.
8    (b) Nothing in this Act shall be construed as creating any
9rights in any applicant to enter into an agreement or in any
10person to challenge the terms of any agreement.
 
11
Article 90. Amendatory Provisions

 
12    Section 90-5. The Illinois Administrative Procedure Act is
13amended by adding Section 45-8 as follows:
 
14    (5 ILCS 100/45-8 new)
15    Sec. 45-8. Emergency rulemaking; Energy Community
16Reinvestment Act. To provide for the expeditious and timely
17implementation of the Energy Community Reinvestment Act,
18emergency rules may be adopted in accordance with Section 5-45
19by the Department of Commerce and Economic Opportunity to
20implement Section 5-15 of the Energy Community Reinvestment
21Act with respect to applications for designation as
22Empowerment Zones. The adoption of emergency rules authorized
23by Section 5-45 and this Section is deemed to be necessary for

 

 

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1the public interest, safety, and welfare.
 
2    Section 90-10. The Illinois Power Agency Act is amended by
3changing Sections 1-20, 1-56, and 1-75 and by adding 1-76 as
4follows:
 
5    (20 ILCS 3855/1-20)
6    Sec. 1-20. General powers of the Agency.
7    (a) The Agency is authorized to do each of the following:
8        (1) Develop electricity procurement plans to ensure
9    adequate, reliable, affordable, efficient, and
10    environmentally sustainable electric service at the lowest
11    total cost over time, taking into account any benefits of
12    price stability, for electric utilities that on December
13    31, 2005 provided electric service to at least 100,000
14    customers in Illinois and for small multi-jurisdictional
15    electric utilities that (A) on December 31, 2005 served
16    less than 100,000 customers in Illinois and (B) request a
17    procurement plan for their Illinois jurisdictional load.
18    Except as provided in paragraph (1.5) of this subsection
19    (a), the electricity procurement plans shall be updated on
20    an annual basis and shall include electricity generated
21    from renewable resources sufficient to achieve the
22    standards specified in this Act. Beginning with the
23    delivery year commencing June 1, 2017, develop procurement
24    plans to include zero emission credits generated from zero

 

 

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1    emission facilities sufficient to achieve the standards
2    specified in this Act. If the Commission approves an
3    electric utility's election pursuant to paragraph (6) of
4    subsection (b) of Section 16-111.5 of the Public Utilities
5    Act, then, beginning with the procurement for the first
6    delivery year approved in such election, the Agency shall
7    for each year develop a plan, as part of its procurement
8    plan, to conduct a procurement of capacity from qualified
9    resources needed to meet capacity requirements of all of
10    the retail customers of the electric utility, subject to
11    the open access tariff and manuals of PJM Interconnection,
12    LLC, or its successor. The Capacity Procurement Plan shall
13    be updated annually and shall include electricity
14    generated from renewable resources sufficient to achieve
15    the renewable portfolio standards as specified in this
16    Act.
17        (1.5) Develop a long-term renewable resources
18    procurement plan in accordance with subsection (c) of
19    Section 1-75 of this Act for renewable energy credits in
20    amounts sufficient to achieve the standards specified in
21    this Act for delivery years commencing June 1, 2017 and
22    for the programs and renewable energy credits specified in
23    Section 1-56 of this Act. Electricity procurement plans
24    for delivery years commencing after May 31, 2017, shall
25    not include procurement of renewable energy resources.
26        (2) Conduct competitive procurement processes to

 

 

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1    procure the supply resources identified in the electricity
2    procurement plan, pursuant to Section 16-111.5 of the
3    Public Utilities Act, and, for the delivery year
4    commencing June 1, 2017, conduct procurement processes to
5    procure zero emission credits from zero emission
6    facilities, under subsection (d-5) of Section 1-75 of this
7    Act.
8        (2.5) Beginning with the procurement for the 2017
9    delivery year, conduct competitive procurement processes
10    and implement programs to procure renewable energy credits
11    identified in the long-term renewable resources
12    procurement plan developed and approved under subsection
13    (c) of Section 1-75 of this Act and Section 16-111.5 of the
14    Public Utilities Act.
15        (3) Develop electric generation and cogeneration
16    co-generation facilities that use indigenous coal or
17    renewable resources, or both, financed with bonds issued
18    by the Illinois Finance Authority.
19        (4) Supply electricity from the Agency's facilities at
20    cost to one or more of the following: municipal electric
21    systems, governmental aggregators, or rural electric
22    cooperatives in Illinois.
23    (b) Except as otherwise limited by this Act, the Agency
24has all of the powers necessary or convenient to carry out the
25purposes and provisions of this Act, including without
26limitation, each of the following:

 

 

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1        (1) To have a corporate seal, and to alter that seal at
2    pleasure, and to use it by causing it or a facsimile to be
3    affixed or impressed or reproduced in any other manner.
4        (2) To use the services of the Illinois Finance
5    Authority necessary to carry out the Agency's purposes.
6        (3) To negotiate and enter into loan agreements and
7    other agreements with the Illinois Finance Authority.
8        (4) To obtain and employ personnel and hire
9    consultants that are necessary to fulfill the Agency's
10    purposes, and to make expenditures for that purpose within
11    the appropriations for that purpose.
12        (5) To purchase, receive, take by grant, gift, devise,
13    bequest, or otherwise, lease, or otherwise acquire, own,
14    hold, improve, employ, use, and otherwise deal in and
15    with, real or personal property whether tangible or
16    intangible, or any interest therein, within the State.
17        (6) To acquire real or personal property, whether
18    tangible or intangible, including without limitation
19    property rights, interests in property, franchises,
20    obligations, contracts, and debt and equity securities,
21    and to do so by the exercise of the power of eminent domain
22    in accordance with Section 1-21; except that any real
23    property acquired by the exercise of the power of eminent
24    domain must be located within the State.
25        (7) To sell, convey, lease, exchange, transfer,
26    abandon, or otherwise dispose of, or mortgage, pledge, or

 

 

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1    create a security interest in, any of its assets,
2    properties, or any interest therein, wherever situated.
3        (8) To purchase, take, receive, subscribe for, or
4    otherwise acquire, hold, make a tender offer for, vote,
5    employ, sell, lend, lease, exchange, transfer, or
6    otherwise dispose of, mortgage, pledge, or grant a
7    security interest in, use, and otherwise deal in and with,
8    bonds and other obligations, shares, or other securities
9    (or interests therein) issued by others, whether engaged
10    in a similar or different business or activity.
11        (9) To make and execute agreements, contracts, and
12    other instruments necessary or convenient in the exercise
13    of the powers and functions of the Agency under this Act,
14    including contracts with any person, including personal
15    service contracts, or with any local government, State
16    agency, or other entity; and all State agencies and all
17    local governments are authorized to enter into and do all
18    things necessary to perform any such agreement, contract,
19    or other instrument with the Agency. No such agreement,
20    contract, or other instrument shall exceed 40 years.
21        (10) To lend money, invest and reinvest its funds in
22    accordance with the Public Funds Investment Act, and take
23    and hold real and personal property as security for the
24    payment of funds loaned or invested.
25        (11) To borrow money at such rate or rates of interest
26    as the Agency may determine, issue its notes, bonds, or

 

 

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1    other obligations to evidence that indebtedness, and
2    secure any of its obligations by mortgage or pledge of its
3    real or personal property, machinery, equipment,
4    structures, fixtures, inventories, revenues, grants, and
5    other funds as provided or any interest therein, wherever
6    situated.
7        (12) To enter into agreements with the Illinois
8    Finance Authority to issue bonds whether or not the income
9    therefrom is exempt from federal taxation.
10        (13) To procure insurance against any loss in
11    connection with its properties or operations in such
12    amount or amounts and from such insurers, including the
13    federal government, as it may deem necessary or desirable,
14    and to pay any premiums therefor.
15        (14) To negotiate and enter into agreements with
16    trustees or receivers appointed by United States
17    bankruptcy courts or federal district courts or in other
18    proceedings involving adjustment of debts and authorize
19    proceedings involving adjustment of debts and authorize
20    legal counsel for the Agency to appear in any such
21    proceedings.
22        (15) To file a petition under Chapter 9 of Title 11 of
23    the United States Bankruptcy Code or take other similar
24    action for the adjustment of its debts.
25        (16) To enter into management agreements for the
26    operation of any of the property or facilities owned by

 

 

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1    the Agency.
2        (17) To enter into an agreement to transfer and to
3    transfer any land, facilities, fixtures, or equipment of
4    the Agency to one or more municipal electric systems,
5    governmental aggregators, or rural electric agencies or
6    cooperatives, for such consideration and upon such terms
7    as the Agency may determine to be in the best interest of
8    the citizens of Illinois.
9        (18) To enter upon any lands and within any building
10    whenever in its judgment it may be necessary for the
11    purpose of making surveys and examinations to accomplish
12    any purpose authorized by this Act.
13        (19) To maintain an office or offices at such place or
14    places in the State as it may determine.
15        (20) To request information, and to make any inquiry,
16    investigation, survey, or study that the Agency may deem
17    necessary to enable it effectively to carry out the
18    provisions of this Act.
19        (21) To accept and expend appropriations.
20        (22) To engage in any activity or operation that is
21    incidental to and in furtherance of efficient operation to
22    accomplish the Agency's purposes, including hiring
23    employees that the Director deems essential for the
24    operations of the Agency.
25        (23) To adopt, revise, amend, and repeal rules with
26    respect to its operations, properties, and facilities as

 

 

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1    may be necessary or convenient to carry out the purposes
2    of this Act, subject to the provisions of the Illinois
3    Administrative Procedure Act and Sections 1-22 and 1-35 of
4    this Act.
5        (24) To establish and collect charges and fees as
6    described in this Act.
7        (25) To conduct competitive gasification feedstock
8    procurement processes to procure the feedstocks for the
9    clean coal SNG brownfield facility in accordance with the
10    requirements of Section 1-78 of this Act.
11        (26) To review, revise, and approve sourcing
12    agreements and mediate and resolve disputes between gas
13    utilities and the clean coal SNG brownfield facility
14    pursuant to subsection (h-1) of Section 9-220 of the
15    Public Utilities Act.
16        (27) To request, review and accept proposals, execute
17    contracts, purchase renewable energy credits and otherwise
18    dedicate funds from the Illinois Power Agency Renewable
19    Energy Resources Fund to create and carry out the
20    objectives of the Illinois Solar for All program in
21    accordance with Section 1-56 of this Act.
22(Source: P.A. 99-906, eff. 6-1-17.)
 
23    (20 ILCS 3855/1-56)
24    Sec. 1-56. Illinois Power Agency Renewable Energy
25Resources Fund; Illinois Solar for All Program.

 

 

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1    (a) The Illinois Power Agency Renewable Energy Resources
2Fund is created as a special fund in the State treasury.
3    (b) The Illinois Power Agency Renewable Energy Resources
4Fund shall be administered by the Agency as described in this
5subsection (b), provided that the changes to this subsection
6(b) made by this amendatory Act of the 99th General Assembly
7shall not interfere with existing contracts under this
8Section.
9        (1) The Illinois Power Agency Renewable Energy
10    Resources Fund shall be used to purchase renewable energy
11    credits according to any approved procurement plan
12    developed by the Agency prior to June 1, 2017.
13        (2) The Illinois Power Agency Renewable Energy
14    Resources Fund shall also be used to create the Illinois
15    Solar for All Program, which shall include incentives for
16    low-income distributed generation and community solar
17    projects, and other associated approved expenditures. The
18    objectives of the Illinois Solar for All Program are to
19    bring photovoltaics to low-income communities in this
20    State in a manner that maximizes the development of new
21    photovoltaic generating facilities, to create a long-term,
22    low-income solar marketplace throughout this State, to
23    integrate, through interaction with stakeholders, with
24    existing energy efficiency initiatives, and to minimize
25    administrative costs. The Agency shall include a
26    description of its proposed approach to the design,

 

 

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1    administration, implementation and evaluation of the
2    Illinois Solar for All Program, as part of the long-term
3    renewable resources procurement plan authorized by
4    subsection (c) of Section 1-75 of this Act, and the
5    program shall be designed to grow the low-income solar
6    market. The Agency or utility, as applicable, shall
7    purchase renewable energy credits from the (i)
8    photovoltaic distributed renewable energy generation
9    projects and (ii) community solar projects that are
10    procured under procurement processes authorized by the
11    long-term renewable resources procurement plans approved
12    by the Commission.
13        The Illinois Solar for All Program shall include the
14    program offerings described in subparagraphs (A) through
15    (D) of this paragraph (2), which the Agency shall
16    implement through contracts with third-party providers
17    and, subject to appropriation, pay the approximate amounts
18    identified using monies available in the Illinois Power
19    Agency Renewable Energy Resources Fund. Each contract that
20    provides for the installation of solar facilities shall
21    provide that the solar facilities will produce energy and
22    economic benefits, at a level determined by the Agency to
23    be reasonable, for the participating low income customers.
24    The monies available in the Illinois Power Agency
25    Renewable Energy Resources Fund and not otherwise
26    committed to contracts executed under subsection (i) of

 

 

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1    this Section shall be allocated among the programs
2    described in this paragraph (2), as follows: 22.5% of
3    these funds shall be allocated to programs described in
4    subparagraph (A) of this paragraph (2), 37.5% of these
5    funds shall be allocated to programs described in
6    subparagraph (B) of this paragraph (2), 15% of these funds
7    shall be allocated to programs described in subparagraph
8    (C) of this paragraph (2), and 25% of these funds, but in
9    no event more than $50,000,000, shall be allocated to
10    programs described in subparagraph (D) of this paragraph
11    (2). The allocation of funds among subparagraphs (A), (B),
12    or (C) of this paragraph (2) may be changed if the Agency
13    or administrator, through delegated authority, determines
14    incentives in subparagraphs (A), (B), or (C) of this
15    paragraph (2) have not been adequately subscribed to fully
16    utilize the Illinois Power Agency Renewable Energy
17    Resources Fund. The determination shall include input
18    through a stakeholder process. The Agency shall annually
19    fund the program offerings described in subparagraphs (A)
20    through (D) of this paragraph (2) in an amount of not less
21    than $75,000,000 per year. If the moneys available in the
22    Illinois Power Agency Renewable Energy Resources Fund are
23    insufficient to meet this minimum funding requirement, the
24    Agency shall also use be implemented through contracts
25    funded from such additional amounts as are allocated to
26    one or more of the programs in the long-term renewable

 

 

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1    resources procurement plans as specified in subsection (c)
2    of Section 1-75 of this Act and subparagraph (O) of
3    paragraph (1) of such subsection (c). Beginning after the
4    effective date of this amendatory Act of the 102nd General
5    Assembly, the Agency's updates to its long-term renewable
6    resources procurement plan under Section 16-111.5 of the
7    Public Utilities Act shall set forth the Agency's detailed
8    plan to ensure that at least 80% of the funding available
9    to the Illinois Solar for All Program in a given delivery
10    year will be used and spent on the programs set forth in
11    this subsection (b).
12        Contracts that will be paid with funds in the Illinois
13    Power Agency Renewable Energy Resources Fund shall be
14    executed by the Agency. Contracts that will be paid with
15    funds collected by an electric utility shall be executed
16    by the electric utility.
17        Contracts under the Illinois Solar for All Program
18    shall include an approach, as set forth in the long-term
19    renewable resources procurement plans, to ensure the
20    wholesale market value of the energy is credited to
21    participating low-income customers or organizations and to
22    ensure tangible economic benefits flow directly to program
23    participants, except in the case of low-income
24    multi-family housing where the low-income customer does
25    not directly pay for energy. Priority shall be given to
26    projects that demonstrate meaningful involvement of

 

 

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1    low-income community members in designing the initial
2    proposals. Acceptable proposals to implement projects must
3    demonstrate the applicant's ability to conduct initial
4    community outreach, education, and recruitment of
5    low-income participants in the community. Projects must
6    include job training opportunities if available, and shall
7    endeavor to coordinate with the job training programs
8    described in paragraph (1) of subsection (a) of Section
9    16-108.12 of the Public Utilities Act.
10            (A) Low-income distributed generation incentive.
11        This program will provide incentives to low-income
12        customers, either directly or through solar providers,
13        to increase the participation of low-income households
14        in photovoltaic on-site distributed generation.
15        Companies participating in this program that install
16        solar panels shall commit to hiring job trainees for a
17        portion of their low-income installations, and an
18        administrator shall facilitate partnering the
19        companies that install solar panels with entities that
20        provide solar panel installation job training. It is a
21        goal of this program that a minimum of 25% of the
22        incentives for this program be allocated to projects
23        located within environmental justice communities.
24        Contracts entered into under this paragraph may be
25        entered into with an entity that will develop and
26        administer the program and shall also include

 

 

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1        contracts for renewable energy credits from the
2        photovoltaic distributed generation that is the
3        subject of the program, as set forth in the long-term
4        renewable resources procurement plan.
5            (B) Low-Income Community Solar Project Initiative.
6        Incentives shall be offered to low-income customers,
7        either directly or through developers, to increase the
8        participation of low-income subscribers of community
9        solar projects. The developer of each project shall
10        identify its partnership with community stakeholders
11        regarding the location, development, and participation
12        in the project, provided that nothing shall preclude a
13        project from including an anchor tenant that does not
14        qualify as low-income. Incentives should also be
15        offered to community solar projects that are 100%
16        low-income subscriber owned, which includes low-income
17        households, not-for-profit organizations, and
18        affordable housing owners. It is a goal of this
19        program that a minimum of 25% of the incentives for
20        this program be allocated to community photovoltaic
21        projects in environmental justice communities.
22        Contracts entered into under this paragraph may be
23        entered into with developers and shall also include
24        contracts for renewable energy credits related to the
25        program.
26            (C) Incentives for non-profits and public

 

 

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1        facilities. Under this program funds shall be used to
2        support on-site photovoltaic distributed renewable
3        energy generation devices to serve the load associated
4        with not-for-profit customers and to support
5        photovoltaic distributed renewable energy generation
6        that uses photovoltaic technology to serve the load
7        associated with public sector customers taking service
8        at public buildings. It is a goal of this program that
9        at least 25% of the incentives for this program be
10        allocated to projects located in environmental justice
11        communities. Contracts entered into under this
12        paragraph may be entered into with an entity that will
13        develop and administer the program or with developers
14        and shall also include contracts for renewable energy
15        credits related to the program.
16            (D) Low-Income Community Solar Pilot Projects.
17        Under this program, persons, including, but not
18        limited to, electric utilities, shall propose pilot
19        community solar projects. Community solar projects
20        proposed under this subparagraph (D) may exceed 2,000
21        kilowatts in nameplate capacity, but the amount paid
22        per project under this program may not exceed
23        $20,000,000. Pilot projects must result in economic
24        benefits for the members of the community in which the
25        project will be located. The proposed pilot project
26        must include a partnership with at least one

 

 

10200SB1100sam001- 82 -LRB102 04924 SPS 24488 a

1        community-based organization. Approved pilot projects
2        shall be competitively bid by the Agency, subject to
3        fair and equitable guidelines developed by the Agency.
4        Funding available under this subparagraph (D) may not
5        be distributed solely to a utility, and at least some
6        funds under this subparagraph (D) must include a
7        project partnership that includes community ownership
8        by the project subscribers. Contracts entered into
9        under this paragraph may be entered into with an
10        entity that will develop and administer the program or
11        with developers and shall also include contracts for
12        renewable energy credits related to the program. A
13        project proposed by a utility that is implemented
14        under this subparagraph (D) shall not be included in
15        the utility's rate base ratebase.
16        The requirement that a qualified person, as defined in
17    paragraph (1) of subsection (i) of this Section, install
18    photovoltaic devices does not apply to the Illinois Solar
19    for All Program described in this subsection (b).
20        (3) Costs associated with the Illinois Solar for All
21    Program and its components described in paragraph (2) of
22    this subsection (b), including, but not limited to, costs
23    associated with procuring experts, consultants, and the
24    program administrator referenced in this subsection (b)
25    and related incremental costs, and costs related to the
26    evaluation of the Illinois Solar for All Program, may be

 

 

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1    paid for using monies in the Illinois Power Agency
2    Renewable Energy Resources Fund, but the Agency or program
3    administrator shall strive to minimize costs in the
4    implementation of the program. The Agency shall purchase
5    renewable energy credits from generation that is the
6    subject of a contract under subparagraphs (A) through (D)
7    of this paragraph (2) of this subsection (b), and may pay
8    for such renewable energy credits through an upfront
9    payment per installed kilowatt of nameplate capacity paid
10    once the device is interconnected at the distribution
11    system level of the utility and is energized. The payment
12    shall be in exchange for an assignment of all renewable
13    energy credits generated by the system during the first 15
14    years of operation and shall be structured to overcome
15    barriers to participation in the solar market by the
16    low-income community. The incentives provided for in this
17    Section may be implemented through the pricing of
18    renewable energy credits where the prices paid for the
19    credits are higher than the prices from programs offered
20    under subsection (c) of Section 1-75 of this Act to
21    account for the incentives. The Agency shall ensure
22    collaboration with community agencies, and allocate up to
23    5% of the funds available under the Illinois Solar for All
24    Program to community-based groups to assist in grassroots
25    education efforts related to the Illinois Solar for All
26    Program. The Agency shall retire any renewable energy

 

 

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1    credits purchased from this program and the credits shall
2    count toward towards the obligation under subsection (c)
3    of Section 1-75 of this Act for the electric utility to
4    which the project is interconnected.
5        (4) The Agency shall, consistent with the requirements
6    of this subsection (b), propose the Illinois Solar for All
7    Program terms, conditions, and requirements, including the
8    prices to be paid for renewable energy credits, and which
9    prices may be determined through a formula, through the
10    development, review, and approval of the Agency's
11    long-term renewable resources procurement plan described
12    in subsection (c) of Section 1-75 of this Act and Section
13    16-111.5 of the Public Utilities Act. In the course of the
14    Commission proceeding initiated to review and approve the
15    plan, including the Illinois Solar for All Program
16    proposed by the Agency, a party may propose an additional
17    low-income solar or solar incentive program, or
18    modifications to the programs proposed by the Agency, and
19    the Commission may approve an additional program, or
20    modifications to the Agency's proposed program, if the
21    additional or modified program more effectively maximizes
22    the benefits to low-income customers after taking into
23    account all relevant factors, including, but not limited
24    to, the extent to which a competitive market for
25    low-income solar has developed. Following the Commission's
26    approval of the Illinois Solar for All Program, the Agency

 

 

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1    or a party may propose adjustments to the program terms,
2    conditions, and requirements, including the price offered
3    to new systems, to ensure the long-term viability and
4    success of the program. The Commission shall review and
5    approve any modifications to the program through the plan
6    revision process described in Section 16-111.5 of the
7    Public Utilities Act.
8        (5) The Agency shall issue a request for
9    qualifications for a third-party program administrator or
10    administrators to administer all or a portion of the
11    Illinois Solar for All Program. The third-party program
12    administrator shall be chosen through a competitive bid
13    process based on selection criteria and requirements
14    developed by the Agency, including, but not limited to,
15    experience in administering low-income energy programs and
16    overseeing statewide clean energy or energy efficiency
17    services. If the Agency retains a program administrator or
18    administrators to implement all or a portion of the
19    Illinois Solar for All Program, each administrator shall
20    periodically submit reports to the Agency and Commission
21    for each program that it administers, at appropriate
22    intervals to be identified by the Agency in its long-term
23    renewable resources procurement plan, provided that the
24    reporting interval is at least quarterly.
25        (6) The long-term renewable resources procurement plan
26    shall also provide for an independent evaluation of the

 

 

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1    Illinois Solar for All Program. At least every 2 years,
2    the Agency shall select an independent evaluator to review
3    and report on the Illinois Solar for All Program and the
4    performance of the third-party program administrator of
5    the Illinois Solar for All Program. The evaluation shall
6    be based on objective criteria developed through a public
7    stakeholder process. The process shall include feedback
8    and participation from Illinois Solar for All Program
9    stakeholders, including participants and organizations in
10    environmental justice and historically underserved
11    communities. The report shall include a summary of the
12    evaluation of the Illinois Solar for All Program based on
13    the stakeholder developed objective criteria. The report
14    shall include the number of projects installed; the total
15    installed capacity in kilowatts; the average cost per
16    kilowatt of installed capacity to the extent reasonably
17    obtainable by the Agency; the number of jobs or job
18    opportunities created; economic, social, and environmental
19    benefits created; and the total administrative costs
20    expended by the Agency and program administrator to
21    implement and evaluate the program. The report shall be
22    delivered to the Commission and posted on the Agency's
23    website, and shall be used, as needed, to revise the
24    Illinois Solar for All Program. The Commission shall also
25    consider the results of the evaluation as part of its
26    review of the long-term renewable resources procurement

 

 

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1    plan under subsection (c) of Section 1-75 of this Act.
2        (7) If additional funding for the programs described
3    in this subsection (b) is available under subsection (k)
4    of Section 16-108 of the Public Utilities Act, then the
5    Agency shall submit a procurement plan to the Commission
6    no later than September 1, 2018, that proposes how the
7    Agency will procure programs on behalf of the applicable
8    utility. After notice and hearing, the Commission shall
9    approve, or approve with modification, the plan no later
10    than November 1, 2018.
11    As used in this subsection (b), "low-income households"
12means persons and families whose income does not exceed 80% of
13area median income, adjusted for family size and revised every
145 years.
15    For the purposes of this subsection (b), the Agency shall
16define "environmental justice community" as part of long-term
17renewable resources procurement plan development, to ensure,
18to the extent practicable, compatibility with other agencies'
19definitions and may, for guidance, look to the definitions
20used by federal, state, or local governments.
21    (b-5) After the receipt of all payments required by
22Section 16-115D of the Public Utilities Act, no additional
23funds shall be deposited into the Illinois Power Agency
24Renewable Energy Resources Fund unless directed by order of
25the Commission.
26    (b-10) After the receipt of all payments required by

 

 

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1Section 16-115D of the Public Utilities Act and payment in
2full of all contracts executed by the Agency under subsections
3(b) and (i) of this Section, if the balance of the Illinois
4Power Agency Renewable Energy Resources Fund is under $5,000,
5then the Fund shall be inoperative and any remaining funds and
6any funds submitted to the Fund after that date, shall be
7transferred to the Supplemental Low-Income Energy Assistance
8Fund for use in the Low-Income Home Energy Assistance Program,
9as authorized by the Energy Assistance Act.
10    (c) (Blank).
11    (d) (Blank).
12    (e) All renewable energy credits procured using monies
13from the Illinois Power Agency Renewable Energy Resources Fund
14shall be permanently retired.
15    (f) The selection of one or more third-party program
16managers or administrators, the selection of the independent
17evaluator, and the procurement processes described in this
18Section are exempt from the requirements of the Illinois
19Procurement Code, under Section 20-10 of that Code.
20    (g) All disbursements from the Illinois Power Agency
21Renewable Energy Resources Fund shall be made only upon
22warrants of the Comptroller drawn upon the Treasurer as
23custodian of the Fund upon vouchers signed by the Director or
24by the person or persons designated by the Director for that
25purpose. The Comptroller is authorized to draw the warrant
26upon vouchers so signed. The Treasurer shall accept all

 

 

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1warrants so signed and shall be released from liability for
2all payments made on those warrants.
3    (h) The Illinois Power Agency Renewable Energy Resources
4Fund shall not be subject to sweeps, administrative charges,
5or chargebacks, including, but not limited to, those
6authorized under Section 8h of the State Finance Act, that
7would in any way result in the transfer of any funds from this
8Fund to any other fund of this State or in having any such
9funds utilized for any purpose other than the express purposes
10set forth in this Section.
11    (h-5) The Agency may assess fees to each bidder to recover
12the costs incurred in connection with a procurement process
13held under this Section. Fees collected from bidders shall be
14deposited into the Renewable Energy Resources Fund.
15    (i) Supplemental procurement process.
16        (1) Within 90 days after the effective date of this
17    amendatory Act of the 98th General Assembly, the Agency
18    shall develop a one-time supplemental procurement plan
19    limited to the procurement of renewable energy credits, if
20    available, from new or existing photovoltaics, including,
21    but not limited to, distributed photovoltaic generation.
22    Nothing in this subsection (i) requires procurement of
23    wind generation through the supplemental procurement.
24        Renewable energy credits procured from new
25    photovoltaics, including, but not limited to, distributed
26    photovoltaic generation, under this subsection (i) must be

 

 

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1    procured from devices installed by a qualified person. In
2    its supplemental procurement plan, the Agency shall
3    establish contractually enforceable mechanisms for
4    ensuring that the installation of new photovoltaics is
5    performed by a qualified person.
6        For the purposes of this paragraph (1), "qualified
7    person" means a person who performs installations of
8    photovoltaics, including, but not limited to, distributed
9    photovoltaic generation, and who: (A) has completed an
10    apprenticeship as a journeyman electrician from a United
11    States Department of Labor registered electrical
12    apprenticeship and training program and received a
13    certification of satisfactory completion; or (B) does not
14    currently meet the criteria under clause (A) of this
15    paragraph (1), but is enrolled in a United States
16    Department of Labor registered electrical apprenticeship
17    program, provided that the person is directly supervised
18    by a person who meets the criteria under clause (A) of this
19    paragraph (1); or (C) has obtained one of the following
20    credentials in addition to attesting to satisfactory
21    completion of at least 5 years or 8,000 hours of
22    documented hands-on electrical experience: (i) a North
23    American Board of Certified Energy Practitioners (NABCEP)
24    Installer Certificate for Solar PV; (ii) an Underwriters
25    Laboratories (UL) PV Systems Installer Certificate; (iii)
26    an Electronics Technicians Association, International

 

 

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1    (ETAI) Level 3 PV Installer Certificate; or (iv) an
2    Associate in Applied Science degree from an Illinois
3    Community College Board approved community college program
4    in renewable energy or a distributed generation
5    technology.
6        For the purposes of this paragraph (1), "directly
7    supervised" means that there is a qualified person who
8    meets the qualifications under clause (A) of this
9    paragraph (1) and who is available for supervision and
10    consultation regarding the work performed by persons under
11    clause (B) of this paragraph (1), including a final
12    inspection of the installation work that has been directly
13    supervised to ensure safety and conformity with applicable
14    codes.
15        For the purposes of this paragraph (1), "install"
16    means the major activities and actions required to
17    connect, in accordance with applicable building and
18    electrical codes, the conductors, connectors, and all
19    associated fittings, devices, power outlets, or
20    apparatuses mounted at the premises that are directly
21    involved in delivering energy to the premises' electrical
22    wiring from the photovoltaics, including, but not limited
23    to, to distributed photovoltaic generation.
24        The renewable energy credits procured pursuant to the
25    supplemental procurement plan shall be procured using up
26    to $30,000,000 from the Illinois Power Agency Renewable

 

 

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1    Energy Resources Fund. The Agency shall not plan to use
2    funds from the Illinois Power Agency Renewable Energy
3    Resources Fund in excess of the monies on deposit in such
4    fund or projected to be deposited into such fund. The
5    supplemental procurement plan shall ensure adequate,
6    reliable, affordable, efficient, and environmentally
7    sustainable renewable energy resources (including credits)
8    at the lowest total cost over time, taking into account
9    any benefits of price stability.
10        To the extent available, 50% of the renewable energy
11    credits procured from distributed renewable energy
12    generation shall come from devices of less than 25
13    kilowatts in nameplate capacity. Procurement of renewable
14    energy credits from distributed renewable energy
15    generation devices shall be done through multi-year
16    contracts of no less than 5 years. The Agency shall create
17    credit requirements for counterparties. In order to
18    minimize the administrative burden on contracting
19    entities, the Agency shall solicit the use of third
20    parties to aggregate distributed renewable energy. These
21    third parties shall enter into and administer contracts
22    with individual distributed renewable energy generation
23    device owners. An individual distributed renewable energy
24    generation device owner shall have the ability to measure
25    the output of his or her distributed renewable energy
26    generation device.

 

 

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1        In developing the supplemental procurement plan, the
2    Agency shall hold at least one workshop open to the public
3    within 90 days after the effective date of this amendatory
4    Act of the 98th General Assembly and shall consider any
5    comments made by stakeholders or the public. Upon
6    development of the supplemental procurement plan within
7    this 90-day period, copies of the supplemental procurement
8    plan shall be posted and made publicly available on the
9    Agency's and Commission's websites. All interested parties
10    shall have 14 days following the date of posting to
11    provide comment to the Agency on the supplemental
12    procurement plan. All comments submitted to the Agency
13    shall be specific, supported by data or other detailed
14    analyses, and, if objecting to all or a portion of the
15    supplemental procurement plan, accompanied by specific
16    alternative wording or proposals. All comments shall be
17    posted on the Agency's and Commission's websites. Within
18    14 days following the end of the 14-day review period, the
19    Agency shall revise the supplemental procurement plan as
20    necessary based on the comments received and file its
21    revised supplemental procurement plan with the Commission
22    for approval.
23        (2) Within 5 days after the filing of the supplemental
24    procurement plan at the Commission, any person objecting
25    to the supplemental procurement plan shall file an
26    objection with the Commission. Within 10 days after the

 

 

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1    filing, the Commission shall determine whether a hearing
2    is necessary. The Commission shall enter its order
3    confirming or modifying the supplemental procurement plan
4    within 90 days after the filing of the supplemental
5    procurement plan by the Agency.
6        (3) The Commission shall approve the supplemental
7    procurement plan of renewable energy credits to be
8    procured from new or existing photovoltaics, including,
9    but not limited to, distributed photovoltaic generation,
10    if the Commission determines that it will ensure adequate,
11    reliable, affordable, efficient, and environmentally
12    sustainable electric service in the form of renewable
13    energy credits at the lowest total cost over time, taking
14    into account any benefits of price stability.
15        (4) The supplemental procurement process under this
16    subsection (i) shall include each of the following
17    components:
18            (A) Procurement administrator. The Agency may
19        retain a procurement administrator in the manner set
20        forth in item (2) of subsection (a) of Section 1-75 of
21        this Act to conduct the supplemental procurement or
22        may elect to use the same procurement administrator
23        administering the Agency's annual procurement under
24        Section 1-75.
25            (B) Procurement monitor. The procurement monitor
26        retained by the Commission pursuant to Section

 

 

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1        16-111.5 of the Public Utilities Act shall:
2                (i) monitor interactions among the procurement
3            administrator and bidders and suppliers;
4                (ii) monitor and report to the Commission on
5            the progress of the supplemental procurement
6            process;
7                (iii) provide an independent confidential
8            report to the Commission regarding the results of
9            the procurement events;
10                (iv) assess compliance with the procurement
11            plan approved by the Commission for the
12            supplemental procurement process;
13                (v) preserve the confidentiality of supplier
14            and bidding information in a manner consistent
15            with all applicable laws, rules, regulations, and
16            tariffs;
17                (vi) provide expert advice to the Commission
18            and consult with the procurement administrator
19            regarding issues related to procurement process
20            design, rules, protocols, and policy-related
21            matters;
22                (vii) consult with the procurement
23            administrator regarding the development and use of
24            benchmark criteria, standard form contracts,
25            credit policies, and bid documents; and
26                (viii) perform, with respect to the

 

 

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1            supplemental procurement process, any other
2            procurement monitor duties specifically delineated
3            within subsection (i) of this Section.
4            (C) Solicitation, pre-qualification, and
5        registration of bidders. The procurement administrator
6        shall disseminate information to potential bidders to
7        promote a procurement event, notify potential bidders
8        that the procurement administrator may enter into a
9        post-bid price negotiation with bidders that meet the
10        applicable benchmarks, provide supply requirements,
11        and otherwise explain the competitive procurement
12        process. In addition to such other publication as the
13        procurement administrator determines is appropriate,
14        this information shall be posted on the Agency's and
15        the Commission's websites. The procurement
16        administrator shall also administer the
17        prequalification process, including evaluation of
18        credit worthiness, compliance with procurement rules,
19        and agreement to the standard form contract developed
20        pursuant to item (D) of this paragraph (4). The
21        procurement administrator shall then identify and
22        register bidders to participate in the procurement
23        event.
24            (D) Standard contract forms and credit terms and
25        instruments. The procurement administrator, in
26        consultation with the Agency, the Commission, and

 

 

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1        other interested parties and subject to Commission
2        oversight, shall develop and provide standard contract
3        forms for the supplier contracts that meet generally
4        accepted industry practices as well as include any
5        applicable State of Illinois terms and conditions that
6        are required for contracts entered into by an agency
7        of the State of Illinois. Standard credit terms and
8        instruments that meet generally accepted industry
9        practices shall be similarly developed. Contracts for
10        new photovoltaics shall include a provision attesting
11        that the supplier will use a qualified person for the
12        installation of the device pursuant to paragraph (1)
13        of subsection (i) of this Section. The procurement
14        administrator shall make available to the Commission
15        all written comments it receives on the contract
16        forms, credit terms, or instruments. If the
17        procurement administrator cannot reach agreement with
18        the parties as to the contract terms and conditions,
19        the procurement administrator must notify the
20        Commission of any disputed terms and the Commission
21        shall resolve the dispute. The terms of the contracts
22        shall not be subject to negotiation by winning
23        bidders, and the bidders must agree to the terms of the
24        contract in advance so that winning bids are selected
25        solely on the basis of price.
26            (E) Requests for proposals; competitive

 

 

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1        procurement process. The procurement administrator
2        shall design and issue requests for proposals to
3        supply renewable energy credits in accordance with the
4        supplemental procurement plan, as approved by the
5        Commission. The requests for proposals shall set forth
6        a procedure for sealed, binding commitment bidding
7        with pay-as-bid settlement, and provision for
8        selection of bids on the basis of price, provided,
9        however, that no bid shall be accepted if it exceeds
10        the benchmark developed pursuant to item (F) of this
11        paragraph (4).
12            (F) Benchmarks. Benchmarks for each product to be
13        procured shall be developed by the procurement
14        administrator in consultation with Commission staff,
15        the Agency, and the procurement monitor for use in
16        this supplemental procurement.
17            (G) A plan for implementing contingencies in the
18        event of supplier default, Commission rejection of
19        results, or any other cause.
20        (5) Within 2 business days after opening the sealed
21    bids, the procurement administrator shall submit a
22    confidential report to the Commission. The report shall
23    contain the results of the bidding for each of the
24    products along with the procurement administrator's
25    recommendation for the acceptance and rejection of bids
26    based on the price benchmark criteria and other factors

 

 

10200SB1100sam001- 99 -LRB102 04924 SPS 24488 a

1    observed in the process. The procurement monitor also
2    shall submit a confidential report to the Commission
3    within 2 business days after opening the sealed bids. The
4    report shall contain the procurement monitor's assessment
5    of bidder behavior in the process as well as an assessment
6    of the procurement administrator's compliance with the
7    procurement process and rules. The Commission shall review
8    the confidential reports submitted by the procurement
9    administrator and procurement monitor and shall accept or
10    reject the recommendations of the procurement
11    administrator within 2 business days after receipt of the
12    reports.
13        (6) Within 3 business days after the Commission
14    decision approving the results of a procurement event, the
15    Agency shall enter into binding contractual arrangements
16    with the winning suppliers using the standard form
17    contracts.
18        (7) The names of the successful bidders and the
19    average of the winning bid prices for each contract type
20    and for each contract term shall be made available to the
21    public within 2 days after the supplemental procurement
22    event. The Commission, the procurement monitor, the
23    procurement administrator, the Agency, and all
24    participants in the procurement process shall maintain the
25    confidentiality of all other supplier and bidding
26    information in a manner consistent with all applicable

 

 

10200SB1100sam001- 100 -LRB102 04924 SPS 24488 a

1    laws, rules, regulations, and tariffs. Confidential
2    information, including the confidential reports submitted
3    by the procurement administrator and procurement monitor
4    pursuant to this Section, shall not be made publicly
5    available and shall not be discoverable by any party in
6    any proceeding, absent a compelling demonstration of need,
7    nor shall those reports be admissible in any proceeding
8    other than one for law enforcement purposes.
9        (8) The supplemental procurement provided in this
10    subsection (i) shall not be subject to the requirements
11    and limitations of subsections (c) and (d) of this
12    Section.
13        (9) Expenses incurred in connection with the
14    procurement process held pursuant to this Section,
15    including, but not limited to, the cost of developing the
16    supplemental procurement plan, the procurement
17    administrator, procurement monitor, and the cost of the
18    retirement of renewable energy credits purchased pursuant
19    to the supplemental procurement shall be paid for from the
20    Illinois Power Agency Renewable Energy Resources Fund. The
21    Agency shall enter into an interagency agreement with the
22    Commission to reimburse the Commission for its costs
23    associated with the procurement monitor for the
24    supplemental procurement process.
25(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
 

 

 

10200SB1100sam001- 101 -LRB102 04924 SPS 24488 a

1    (20 ILCS 3855/1-75)
2    Sec. 1-75. Planning and Procurement Bureau. The Planning
3and Procurement Bureau has the following duties and
4responsibilities:
5    (a) The Planning and Procurement Bureau shall each year,
6beginning in 2008, develop procurement plans and conduct
7competitive procurement processes in accordance with the
8requirements of Section 16-111.5 of the Public Utilities Act
9for the eligible retail customers of electric utilities that
10on December 31, 2005 provided electric service to at least
11100,000 customers in Illinois. Beginning with the delivery
12year commencing on June 1, 2017, the Planning and Procurement
13Bureau shall develop plans and processes for the procurement
14of zero emission credits from zero emission facilities in
15accordance with the requirements of subsection (d-5) of this
16Section. The Planning and Procurement Bureau shall also
17develop procurement plans and conduct competitive procurement
18processes in accordance with the requirements of Section
1916-111.5 of the Public Utilities Act for the eligible retail
20customers of small multi-jurisdictional electric utilities
21that (i) on December 31, 2005 served less than 100,000
22customers in Illinois and (ii) request a procurement plan for
23their Illinois jurisdictional load. This Section shall not
24apply to a small multi-jurisdictional utility until such time
25as a small multi-jurisdictional utility requests the Agency to
26prepare a procurement plan for their Illinois jurisdictional

 

 

10200SB1100sam001- 102 -LRB102 04924 SPS 24488 a

1load. For the purposes of this Section, the term "eligible
2retail customers" has the same definition as found in Section
316-111.5(a) of the Public Utilities Act.
4    Beginning with the plan or plans to be implemented in the
52017 delivery year, the Agency shall no longer include the
6procurement of renewable energy resources in the annual
7procurement plans required by this subsection (a), except as
8provided in subsection (q) of Section 16-111.5 of the Public
9Utilities Act, and shall instead develop a long-term renewable
10resources procurement plan in accordance with subsection (c)
11of this Section and Section 16-111.5 of the Public Utilities
12Act.
13        (1) The Agency shall each year, beginning in 2008, as
14    needed, issue a request for qualifications for experts or
15    expert consulting firms to develop the procurement plans
16    in accordance with Section 16-111.5 of the Public
17    Utilities Act. In order to qualify an expert or expert
18    consulting firm must have:
19            (A) direct previous experience assembling
20        large-scale power supply plans or portfolios for
21        end-use customers;
22            (B) an advanced degree in economics, mathematics,
23        engineering, risk management, or a related area of
24        study;
25            (C) 10 years of experience in the electricity
26        sector, including managing supply risk;

 

 

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

 

 

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1        organizations;
2            (E) expertise in credit and contract protocols;
3            (F) adequate resources to perform and fulfill the
4        required functions and responsibilities; and
5            (G) the absence of a conflict of interest and
6        inappropriate bias for or against potential bidders or
7        the affected electric utilities.
8        (3) The Agency shall provide affected utilities and
9    other interested parties with the lists of qualified
10    experts or expert consulting firms identified through the
11    request for qualifications processes that are under
12    consideration to develop the procurement plans and to
13    serve as the procurement administrator. The Agency shall
14    also provide each qualified expert's or expert consulting
15    firm's response to the request for qualifications. All
16    information provided under this subparagraph shall also be
17    provided to the Commission. The Agency may provide by rule
18    for fees associated with supplying the information to
19    utilities and other interested parties. These parties
20    shall, within 5 business days, notify the Agency in
21    writing if they object to any experts or expert consulting
22    firms on the lists. Objections shall be based on:
23            (A) failure to satisfy qualification criteria;
24            (B) identification of a conflict of interest; or
25            (C) evidence of inappropriate bias for or against
26        potential bidders or the affected utilities.

 

 

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1        The Agency shall remove experts or expert consulting
2    firms from the lists within 10 days if there is a
3    reasonable basis for an objection and provide the updated
4    lists to the affected utilities and other interested
5    parties. If the Agency fails to remove an expert or expert
6    consulting firm from a list, an objecting party may seek
7    review by the Commission within 5 days thereafter by
8    filing a petition, and the Commission shall render a
9    ruling on the petition within 10 days. There is no right of
10    appeal of the Commission's ruling.
11        (4) The Agency shall issue requests for proposals to
12    the qualified experts or expert consulting firms to
13    develop a procurement plan for the affected utilities and
14    to serve as procurement administrator.
15        (5) The Agency shall select an expert or expert
16    consulting firm to develop procurement plans based on the
17    proposals submitted and shall award contracts of up to 5
18    years to those selected.
19        (6) The Agency shall select an expert or expert
20    consulting firm, with approval of the Commission, to serve
21    as procurement administrator based on the proposals
22    submitted. If the Commission rejects, within 5 days, the
23    Agency's selection, the Agency shall submit another
24    recommendation within 3 days based on the proposals
25    submitted. The Agency shall award a 5-year contract to the
26    expert or expert consulting firm so selected with

 

 

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1    Commission approval.
2    (b) The experts or expert consulting firms retained by the
3Agency shall, as appropriate, prepare procurement plans, and
4conduct a competitive procurement process as prescribed in
5Section 16-111.5 of the Public Utilities Act, to ensure
6adequate, reliable, affordable, efficient, and environmentally
7sustainable electric service at the lowest total cost over
8time, taking into account any benefits of price stability, for
9eligible retail customers of electric utilities that on
10December 31, 2005 provided electric service to at least
11100,000 customers in the State of Illinois, and for eligible
12Illinois retail customers of small multi-jurisdictional
13electric utilities that (i) on December 31, 2005 served less
14than 100,000 customers in Illinois and (ii) request a
15procurement plan for their Illinois jurisdictional load.
16    (c) Renewable portfolio standard.
17        (1)(A) The Agency shall develop a long-term renewable
18    resources procurement plan that shall include procurement
19    programs and competitive procurement events necessary to
20    meet the goals set forth in this subsection (c). The
21    initial long-term renewable resources procurement plan
22    shall be released for comment no later than 160 days after
23    June 1, 2017 (the effective date of Public Act 99-906).
24    The Agency shall review, and may revise on an expedited
25    basis, the long-term renewable resources procurement plan
26    at least every 2 years, which shall be conducted in

 

 

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1    conjunction with the procurement plan under Section
2    16-111.5 of the Public Utilities Act to the extent
3    practicable to minimize administrative expense. The
4    long-term renewable resources procurement plans shall be
5    subject to review and approval by the Commission under
6    Section 16-111.5 of the Public Utilities Act.
7        (B) Subject to subparagraph (F) of this paragraph (1),
8    the long-term renewable resources procurement plan shall
9    include the goals for procurement of renewable energy
10    credits to meet at least the following overall
11    percentages: 13% by the 2017 delivery year; increasing by
12    at least 1.5% each delivery year thereafter to at least
13    25% by the 2025 delivery year; and continuing at no less
14    than 25% for each delivery year thereafter. In the event
15    of a conflict between these goals and the new wind and new
16    photovoltaic procurement requirements described in items
17    (i) through (iii) of subparagraph (C) of this paragraph
18    (1), the long-term plan shall prioritize compliance with
19    the new wind and new photovoltaic procurement requirements
20    described in items (i) through (iii) of subparagraph (C)
21    of this paragraph (1) over the annual percentage targets
22    described in this subparagraph (B).
23        For the delivery year beginning June 1, 2017, the
24    procurement plan shall include cost-effective renewable
25    energy resources equal to at least 13% of each utility's
26    load for eligible retail customers and 13% of the

 

 

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

 

 

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1    shall be used to meet the goals set forth in this
2    subsection (c) for the delivery year.
3        Notwithstanding the provisions of this subparagraph
4    (B), the percentage goals identified in this subparagraph
5    for the procurement of cost-effective renewable energy
6    resources shall not apply after the delivery year ending
7    May 31, 2022.
8        (B-5) Beginning after the effective date of this
9    amendatory Act of the 102nd General Assembly, subject to
10    subparagraph (F) of this paragraph (1), the long-term
11    renewable resources procurement plan, as revised, shall
12    include the goal of procuring a total of 35,000,000
13    additional annual renewable energy credits by the delivery
14    year commencing June 1, 2030, which amount shall be
15    procured in accordance with subparagraph (C-5) of this
16    paragraph (1).
17        (C) Of the renewable energy credits procured under
18    this subsection (c), at least 75% shall come from wind and
19    photovoltaic projects. The long-term renewable resources
20    procurement plan described in subparagraph (A) of this
21    paragraph (1) shall include the procurement of renewable
22    energy credits in amounts equal to at least the following:
23            (i) By the end of the 2020 delivery year:
24                At least 2,000,000 renewable energy credits
25            for each delivery year shall come from new wind
26            projects; and

 

 

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

 

 

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

 

 

10200SB1100sam001- 112 -LRB102 04924 SPS 24488 a

1            paragraph (1).
2            For purposes of this Section:
3                "New wind projects" means wind renewable
4            energy facilities that are energized after June 1,
5            2017 for the delivery year commencing June 1, 2017
6            or within 3 years after the date the Commission
7            approves contracts for subsequent delivery years.
8                "New photovoltaic projects" means photovoltaic
9            renewable energy facilities that are energized
10            after June 1, 2017. Photovoltaic projects
11            developed under Section 1-56 of this Act shall not
12            apply toward towards the new photovoltaic project
13            requirements in this subparagraph (C).
14        Notwithstanding the provisions of this subparagraph
15    (C), the renewable energy credit procurement requirements
16    and goals of this subparagraph shall not apply after the
17    delivery year ending May 31, 2022.
18        (C-5) Beginning after the effective date of this
19    amendatory Act of the 102nd General Assembly, the
20    long-term renewable resources procurement plan described
21    in subparagraph (A) of this paragraph (1), as revised,
22    shall include the procurement of renewable energy credits
23    in amounts equal to at least 35,000,000 renewable energy
24    credits from wind and solar projects by the end of the
25    delivery year commencing June 1, 2030. Of that amount:
26            (i) at least 25,000,000 of the renewable energy

 

 

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1        credits shall be procured for electric utilities that
2        serve less than 3,000,000 retail customers but more
3        than 500,000 retail customers in the State; and
4            (ii) at least 10,000,000 of the renewable energy
5        credits shall be procured for electric utilities that
6        serve more than 3,000,000 retail customers in the
7        State.
8        The Agency's planning and procurement processes to
9    implement the provisions of this subparagraph (C-5) shall
10    conform to the requirements of subparagraph (I) of this
11    paragraph (1), and the Agency shall be permitted to use
12    those competitive procurement processes and programs
13    authorized by this paragraph (1) to effect such
14    implementation.
15        (D) Renewable energy credits shall be cost-effective
16    cost effective. For purposes of this subsection (c),
17    "cost-effective" "cost effective" means that the costs of
18    procuring renewable energy resources do not cause the
19    limit stated in subparagraph (E) of this paragraph (1) to
20    be exceeded and, for renewable energy credits procured
21    through a competitive procurement event, do not exceed
22    benchmarks based on market prices for like products in the
23    region. For purposes of this subsection (c), "like
24    products" means contracts for renewable energy credits
25    from the same or substantially similar technology, same or
26    substantially similar vintage (new or existing), the same

 

 

10200SB1100sam001- 114 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 115 -LRB102 04924 SPS 24488 a

1    (megawatt-hours) delivered by the electric utility in the
2    delivery year ending immediately prior to the procurement,
3    to all retail customers in its service territory. For
4    purposes of this subsection (c), the amount paid per
5    kilowatthour means the total amount paid for electric
6    service expressed on a per kilowatthour basis. For
7    purposes of this subsection (c), the total amount paid for
8    electric service includes without limitation amounts paid
9    for supply, transmission, distribution, surcharges, and
10    add-on taxes.
11        Notwithstanding the requirements of this subsection
12    (c), the total of renewable energy resources procured
13    under the procurement plan for any single year shall be
14    subject to the limitations of this subparagraph (E). Such
15    procurement shall be reduced for all retail customers
16    based on the amount necessary to limit the annual
17    estimated average net increase due to the costs of these
18    resources included in the amounts paid by eligible retail
19    customers in connection with electric service to no more
20    than the greater of 2.015% of the amount paid per
21    kilowatthour by those customers during the year ending May
22    31, 2007 or the incremental amount per kilowatthour paid
23    for these resources in 2011. Beginning with the delivery
24    year commencing June 1, 2022, the 2.015% of the amount
25    paid per kilowatthour by those customers during the year
26    ending May 31, 2022 is increased to 4.030%. To arrive at a

 

 

10200SB1100sam001- 116 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 117 -LRB102 04924 SPS 24488 a

1    following order:
2            (i) renewable energy credits under existing
3        contractual obligations;
4            (i-5) funding for the Illinois Solar for All
5        Program, as described in subparagraph (O) of this
6        paragraph (1);
7            (i-10) funding for the school solar program set
8        forth in item (iv) of subparagraph (K) and
9        subparagraph (K-10) of this paragraph (1);
10            (ii) renewable energy credits necessary to comply
11        with the new wind and new photovoltaic procurement
12        requirements described in items (i) through (iii) of
13        subparagraph (C) of this paragraph (1); and
14            (iii) renewable energy credits necessary to meet
15        the remaining requirements of this subsection (c).
16        (G) The following provisions shall apply to the
17    Agency's procurement of renewable energy credits under
18    this subsection (c):
19            (i) Notwithstanding whether a long-term renewable
20        resources procurement plan has been approved, the
21        Agency shall conduct an initial forward procurement
22        for renewable energy credits from new utility-scale
23        wind projects within 160 days after June 1, 2017 (the
24        effective date of Public Act 99-906). For the purposes
25        of this initial forward procurement, the Agency shall
26        solicit 15-year contracts for delivery of 1,000,000

 

 

10200SB1100sam001- 118 -LRB102 04924 SPS 24488 a

1        renewable energy credits delivered annually from new
2        utility-scale wind projects to begin delivery on June
3        1, 2019, if available, but not later than June 1, 2021,
4        unless the project has delays in the establishment of
5        an operating interconnection with the applicable
6        transmission or distribution system as a result of the
7        actions or inactions of the transmission or
8        distribution provider, or other causes for force
9        majeure as outlined in the procurement contract, in
10        which case, not later than June 1, 2022. Payments to
11        suppliers of renewable energy credits shall commence
12        upon delivery; however, for those contracts executed
13        after the effective date of this amendatory Act of the
14        102nd General Assembly, payments to a supplier of
15        renewable energy credits shall commence upon delivery
16        and after the supplier submits proof of compliance
17        with subsection (d-20) of this Section. Renewable
18        energy credits procured under this initial procurement
19        shall be included in the Agency's long-term plan and
20        shall apply to all renewable energy goals in this
21        subsection (c).
22            (ii) Notwithstanding whether a long-term renewable
23        resources procurement plan has been approved, the
24        Agency shall conduct an initial forward procurement
25        for renewable energy credits from new utility-scale
26        solar projects and brownfield site photovoltaic

 

 

10200SB1100sam001- 119 -LRB102 04924 SPS 24488 a

1        projects within one year after June 1, 2017 (the
2        effective date of Public Act 99-906). For the purposes
3        of this initial forward procurement, the Agency shall
4        solicit 15-year contracts for delivery of 1,000,000
5        renewable energy credits delivered annually from new
6        utility-scale solar projects and brownfield site
7        photovoltaic projects to begin delivery on June 1,
8        2019, if available, but not later than June 1, 2021,
9        unless the project has delays in the establishment of
10        an operating interconnection with the applicable
11        transmission or distribution system as a result of the
12        actions or inactions of the transmission or
13        distribution provider, or other causes for force
14        majeure as outlined in the procurement contract, in
15        which case, not later than June 1, 2022. The Agency may
16        structure this initial procurement in one or more
17        discrete procurement events. Payments to suppliers of
18        renewable energy credits shall commence upon delivery;
19        however, for those contracts executed after the
20        effective date of this amendatory Act of the 102nd
21        General Assembly, payments to a supplier of renewable
22        energy credits shall commence upon delivery and after
23        the supplier submits proof of compliance with
24        subsection (d-20) of this Section. Renewable energy
25        credits procured under this initial procurement shall
26        be included in the Agency's long-term plan and shall

 

 

10200SB1100sam001- 120 -LRB102 04924 SPS 24488 a

1        apply to all renewable energy goals in this subsection
2        (c).
3            (iii) Subsequent forward procurements for
4        utility-scale wind projects shall solicit at least
5        1,000,000 renewable energy credits delivered annually
6        per procurement event and shall be planned, scheduled,
7        and designed such that the cumulative amount of
8        renewable energy credits delivered from all new wind
9        projects in each delivery year shall not exceed the
10        Agency's projection of the cumulative amount of
11        renewable energy credits that will be delivered from
12        all new photovoltaic projects, including utility-scale
13        and distributed photovoltaic devices, in the same
14        delivery year at the time scheduled for wind contract
15        delivery.
16            (iv) If, at any time after the time set for
17        delivery of renewable energy credits pursuant to the
18        initial procurements in items (i) and (ii) of this
19        subparagraph (G), the cumulative amount of renewable
20        energy credits projected to be delivered from all new
21        wind projects in a given delivery year exceeds the
22        cumulative amount of renewable energy credits
23        projected to be delivered from all new photovoltaic
24        projects in that delivery year by 200,000 or more
25        renewable energy credits, then the Agency shall within
26        60 days adjust the procurement programs in the

 

 

10200SB1100sam001- 121 -LRB102 04924 SPS 24488 a

1        long-term renewable resources procurement plan to
2        ensure that the projected cumulative amount of
3        renewable energy credits to be delivered from all new
4        wind projects does not exceed the projected cumulative
5        amount of renewable energy credits to be delivered
6        from all new photovoltaic projects by 200,000 or more
7        renewable energy credits, provided that nothing in
8        this Section shall preclude the projected cumulative
9        amount of renewable energy credits to be delivered
10        from all new photovoltaic projects from exceeding the
11        projected cumulative amount of renewable energy
12        credits to be delivered from all new wind projects in
13        each delivery year and provided further that nothing
14        in this item (iv) shall require the curtailment of an
15        executed contract. The Agency shall update, on a
16        quarterly basis, its projection of the renewable
17        energy credits to be delivered from all projects in
18        each delivery year. Notwithstanding anything to the
19        contrary, the Agency may adjust the timing of
20        procurement events conducted under this subparagraph
21        (G). The long-term renewable resources procurement
22        plan shall set forth the process by which the
23        adjustments may be made.
24            (v) All procurements under this subparagraph (G)
25        shall comply with the geographic requirements in
26        subparagraph (I) of this paragraph (1) and shall

 

 

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1        follow the procurement processes and procedures
2        described in this Section and Section 16-111.5 of the
3        Public Utilities Act to the extent practicable, and
4        these processes and procedures may be expedited to
5        accommodate the schedule established by this
6        subparagraph (G).
7        (H) The procurement of renewable energy resources for
8    a given delivery year shall be reduced as described in
9    this subparagraph (H) if an alternative retail electric
10    supplier meets the requirements described in this
11    subparagraph (H).
12            (i) Within 45 days after June 1, 2017 (the
13        effective date of Public Act 99-906), an alternative
14        retail electric supplier or its successor shall submit
15        an informational filing to the Illinois Commerce
16        Commission certifying that, as of December 31, 2015,
17        the alternative retail electric supplier owned one or
18        more electric generating facilities that generates
19        renewable energy resources as defined in Section 1-10
20        of this Act, provided that such facilities are not
21        powered by wind or photovoltaics, and the facilities
22        generate one renewable energy credit for each
23        megawatthour of energy produced from the facility.
24            The informational filing shall identify each
25        facility that was eligible to satisfy the alternative
26        retail electric supplier's obligations under Section

 

 

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1        16-115D of the Public Utilities Act as described in
2        this item (i).
3            (ii) For a given delivery year, the alternative
4        retail electric supplier may elect to supply its
5        retail customers with renewable energy credits from
6        the facility or facilities described in item (i) of
7        this subparagraph (H) that continue to be owned by the
8        alternative retail electric supplier.
9            (iii) The alternative retail electric supplier
10        shall notify the Agency and the applicable utility, no
11        later than February 28 of the year preceding the
12        applicable delivery year or 15 days after June 1, 2017
13        (the effective date of Public Act 99-906), whichever
14        is later, of its election under item (ii) of this
15        subparagraph (H) to supply renewable energy credits to
16        retail customers of the utility. Such election shall
17        identify the amount of renewable energy credits to be
18        supplied by the alternative retail electric supplier
19        to the utility's retail customers and the source of
20        the renewable energy credits identified in the
21        informational filing as described in item (i) of this
22        subparagraph (H), subject to the following
23        limitations:
24                For the delivery year beginning June 1, 2018,
25            the maximum amount of renewable energy credits to
26            be supplied by an alternative retail electric

 

 

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1            supplier under this subparagraph (H) shall be 68%
2            multiplied by 25% multiplied by 14.5% multiplied
3            by the amount of metered electricity
4            (megawatt-hours) delivered by the alternative
5            retail electric supplier to Illinois retail
6            customers during the delivery year ending May 31,
7            2016.
8                For delivery years beginning June 1, 2019 and
9            each year thereafter, the maximum amount of
10            renewable energy credits to be supplied by an
11            alternative retail electric supplier under this
12            subparagraph (H) shall be 68% multiplied by 50%
13            multiplied by 16% multiplied by the amount of
14            metered electricity (megawatt-hours) delivered by
15            the alternative retail electric supplier to
16            Illinois retail customers during the delivery year
17            ending May 31, 2016, provided that the 16% value
18            shall increase by 1.5% each delivery year
19            thereafter to 25% by the delivery year beginning
20            June 1, 2025, and thereafter the 25% value shall
21            apply to each delivery year.
22            For each delivery year, the total amount of
23        renewable energy credits supplied by all alternative
24        retail electric suppliers under this subparagraph (H)
25        shall not exceed 9% of the Illinois target renewable
26        energy credit quantity. The Illinois target renewable

 

 

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1        energy credit quantity for the delivery year beginning
2        June 1, 2018 is 14.5% multiplied by the total amount of
3        metered electricity (megawatt-hours) delivered in the
4        delivery year immediately preceding that delivery
5        year, provided that the 14.5% shall increase by 1.5%
6        each delivery year thereafter to 25% by the delivery
7        year beginning June 1, 2025, and thereafter the 25%
8        value shall apply to each delivery year.
9            If the requirements set forth in items (i) through
10        (iii) of this subparagraph (H) are met, the charges
11        that would otherwise be applicable to the retail
12        customers of the alternative retail electric supplier
13        under paragraph (6) of this subsection (c) for the
14        applicable delivery year shall be reduced by the ratio
15        of the quantity of renewable energy credits supplied
16        by the alternative retail electric supplier compared
17        to that supplier's target renewable energy credit
18        quantity. The supplier's target renewable energy
19        credit quantity for the delivery year beginning June
20        1, 2018 is 14.5% multiplied by the total amount of
21        metered electricity (megawatt-hours) delivered by the
22        alternative retail supplier in that delivery year,
23        provided that the 14.5% shall increase by 1.5% each
24        delivery year thereafter to 25% by the delivery year
25        beginning June 1, 2025, and thereafter the 25% value
26        shall apply to each delivery year.

 

 

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1            On or before April 1 of each year, the Agency shall
2        annually publish a report on its website that
3        identifies the aggregate amount of renewable energy
4        credits supplied by alternative retail electric
5        suppliers under this subparagraph (H).
6        (I) The Agency shall design its long-term renewable
7    energy procurement plan to maximize the State's interest
8    in the health, safety, and welfare of its residents,
9    including but not limited to ensuring that the renewable
10    energy credits procured match the load of each utility
11    consistent with subsection (j) of this Section and in a
12    least-cost manner, which will advance the State's goals of
13    minimizing sulfur dioxide, nitrogen oxide, particulate
14    matter and other pollution that adversely affects public
15    health in this State, increasing fuel and resource
16    diversity in this State, enhancing the reliability and
17    resiliency of the electricity distribution system in this
18    State, meeting goals to limit carbon dioxide emissions
19    under federal or State law, and contributing to a cleaner
20    and healthier environment for the citizens of this State.
21    Therefore, in In order to further these legislative
22    purposes, renewable energy credits shall be eligible to be
23    counted toward the renewable energy requirements of this
24    subsection (c) if they are generated from facilities that
25    can deliver to the purchasing utility located in this
26    State. The Agency may qualify renewable energy credits

 

 

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1    from facilities located in states adjacent to Illinois if
2    the generator demonstrates and the Agency determines that
3    the operation of such facility or facilities will help
4    promote the State's interest in the health, safety, and
5    welfare of its residents based on the public interest
6    criteria described above. To ensure that the public
7    interest criteria are applied to the procurement and given
8    full 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 a
26    transparent schedule of prices and quantities to enable

 

 

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1    the photovoltaic market to scale up and for renewable
2    energy credit prices to adjust at a predictable rate over
3    time. The prices set by the Adjustable Block program can
4    be reflected as a set value or as the product of a formula.
5        The Adjustable Block program shall include for each
6    category of eligible projects: a schedule of standard
7    block purchase prices to be offered; a series of steps,
8    with associated nameplate capacity and purchase prices
9    that adjust from step to step; and automatic opening of
10    the next step as soon as the nameplate capacity and
11    available purchase prices for an open step are fully
12    committed or reserved. Only projects energized on or after
13    June 1, 2017 shall be eligible for the Adjustable Block
14    program. For each block group the Agency shall determine
15    the number of blocks, the amount of generation capacity in
16    each block, and the purchase price for each block,
17    provided that the purchase price provided and the total
18    amount of generation in all blocks for all block groups
19    shall be sufficient to meet the goals in this subsection
20    (c). The Agency may periodically review its prior
21    decisions establishing the number of blocks, the amount of
22    generation capacity in each block, and the purchase price
23    for each block, and may propose, on an expedited basis,
24    changes to these previously set values, including but not
25    limited to redistributing these amounts and the available
26    funds as necessary and appropriate, subject to Commission

 

 

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1    approval as part of the periodic plan revision process
2    described in Section 16-111.5 of the Public Utilities Act.
3    The Agency may define different block sizes, purchase
4    prices, or other distinct terms and conditions for
5    projects located in different utility service territories
6    if the Agency deems it necessary to meet the goals in this
7    subsection (c).
8        The Adjustable Block program shall include at least
9    the following block groups in at least the following
10    amounts, which may be adjusted upon review by the Agency
11    and approval by the Commission as described in this
12    subparagraph (K), all of which are subject to the
13    prioritization of the school solar program described in
14    subparagraph (K-10) of this paragraph (1):
15            (i) At least 25% from distributed renewable energy
16        generation devices with a nameplate capacity of no
17        more than 10 kilowatts.
18            (ii) At least 25% from distributed renewable
19        energy generation devices with a nameplate capacity of
20        more than 10 kilowatts and no more than 2,000
21        kilowatts. The Agency may create sub-categories within
22        this category to account for the differences between
23        projects for small commercial customers, large
24        commercial customers, and public or non-profit
25        customers.
26            (iii) At least 25% from photovoltaic community

 

 

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1        renewable generation projects.
2            (iv) Until the effective date of this amendatory
3        Act of the 102nd General Assembly, the The remaining
4        25% shall be allocated as specified by the Agency in
5        the long-term renewable resources procurement plan;
6        after the effective date of this amendatory Act of the
7        102nd General Assembly, such remaining 25% shall be
8        allocated to the school solar program described in
9        subparagraph (K-10) of this paragraph (1).
10        The Adjustable Block program shall be designed to
11    ensure that renewable energy credits are procured from
12    photovoltaic distributed renewable energy generation
13    devices and new photovoltaic community renewable energy
14    generation projects in diverse locations and are not
15    concentrated in a few geographic areas.
16        (K-5) Beginning immediately after the effective date
17    of this amendatory Act of the 102nd General Assembly, the
18    Agency shall develop and implement a scoring system to
19    evaluate and rank those new photovoltaic community
20    renewable energy generation projects that are submitted
21    under subparagraph (K) of this paragraph (1) when the
22    number of such submissions exceeds the applicable block
23    capacity under the Adjustable Block program. The scoring
24    system shall be designed to ensure that renewable energy
25    credits are procured from new photovoltaic community
26    renewable energy generation projects in diverse geographic

 

 

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1    locations while also maximizing the number of subscribers
2    that can subscribe to the projects. For each such project,
3    the Agency's scoring system shall consider, and assign a
4    numerical point value to, each of the following factors,
5    provided that factors (i) and (vi) shall be accorded the
6    most weight:
7            (i) Population Density: This factor shall consider
8        the population density of the township in which the
9        project will be located and award the highest point
10        value to those projects to be sited in townships with
11        the highest development density.
12            (ii) Subscriber Proximity: This factor shall award
13        a point value to those projects that have committed to
14        only serve subscribers located in the same township as
15        the project; for townships with fewer than 50,000
16        residents, subscribers from adjacent townships can be
17        included to satisfy this factor.
18            (iii) Community Impact: This factor shall award a
19        point value to those projects to be located in
20        environmental justice communities, as defined by the
21        Agency in its Long-Term Renewable Resources
22        Procurement Plan; low-income communities, where
23        consideration shall be given to the percentage of
24        households that earn an income of 80% or less of the
25        area median with projects to be located in communities
26        where greater than 50% of households earn 80% or less

 

 

10200SB1100sam001- 133 -LRB102 04924 SPS 24488 a

1        of the area median income shall be awarded the highest
2        point value; and Disproportionately Impacted Areas, as
3        defined by and identified under the Business
4        Interruption Grant program offered by the Department
5        of Commerce and Economic Opportunity to provide
6        economic relief to those small businesses most
7        impacted by the COVID-19 pandemic.
8            (iv) Workforce Equity: This factor shall account
9        for workforce equity achievements that are reflected
10        in the project's workforce, including, but not limited
11        to, employees who are or were foster children,
12        veterans, returning citizens, attendees of a Tier 1 or
13        Tier 2 school, as defined by subparagraph (K-10) of
14        this paragraph (1) or residents of a
15        Disproportionately Impacted Area as defined in factor
16        (vi) of this subparagraph (K-5). The employers of such
17        employees may include, but shall not be limited to,
18        the following: the Agency-approved entity that submits
19        the project application; the project's engineering,
20        procurement and construction firm; a supplier of the
21        project's components, materials and supplies; and the
22        project entity itself. The Agency shall award point
23        values based on the extent to which the project's
24        workforce reflects such equity achievements.
25            (v) Participant Savings: This factor shall account
26        for the extent to which the project will pass along its

 

 

10200SB1100sam001- 134 -LRB102 04924 SPS 24488 a

1        savings to low-income participants, and award the
2        highest point value to those projects that will pass
3        along 100% of the savings to such customers. For
4        purposes of this item (viii), "low-income" means
5        households whose income does not exceed 80% of area
6        median income.
7            (vi) Redevelopment Site: This factor shall award a
8        point value to those projects that will be located on
9        the site of a current or former conventional electric
10        generating facility, which, for purposes of this
11        subparagraph (K-5), includes coal-fired electric
12        generating facilities, gas-fired electric generating
13        facilities, and nuclear-fueled electric generating
14        facilities.
15            (vii) Preapprenticeship Program: This factor shall
16        account for the extent to which the project's
17        workforce and employees include graduates of the
18        preapprenticeship program set forth in subsection
19        (d-20) of this Section 1-75. The employers of such
20        employees may include, but shall not be limited to,
21        the following: the Agency-approved entity that submits
22        the project application; the project's engineering,
23        procurement and construction firm; a supplier of the
24        project's components, materials and supplies; and the
25        project entity itself. The Agency shall award point
26        values based on the number of such graduates that are

 

 

10200SB1100sam001- 135 -LRB102 04924 SPS 24488 a

1        employed through the project's workforce.
2        The Agency shall assign at least one point that may be
3    awarded under each factor, and the total point value to be
4    awarded under the factors shall be at least 7 points. In
5    order to be eligible to participate in an Adjustable Block
6    program procurement for new photovoltaic community
7    renewable energy generation projects held under
8    subparagraph (K) of this paragraph (1), the project must
9    receive a total score of at least 5 points from no fewer
10    than 3 separate factors. If 2 or more projects have the
11    same score, the Agency shall use a pay-as-bid auction
12    among such projects to fill any remaining block capacity.
13    However, if the size of the remaining block capacity is
14    constrained such that it can only accommodate one or more
15    projects below a certain size threshold, then the Agency
16    may only consider those projects that would not exceed the
17    remaining block capacity.
18        To the extent feasible and consistent with State and
19    federal law, the Agency's implementation of this
20    subparagraph (K-5) shall be designed to ensure that the
21    projects selected provide employment opportunities for all
22    segments of the population and workforce, including
23    minority-owned, female-owned, veteran-owned, and
24    disability-owned business enterprises, and shall not,
25    consistent with State and federal law, discriminate based
26    on race or socioeconomic status.

 

 

10200SB1100sam001- 136 -LRB102 04924 SPS 24488 a

1        (K-10) School Solar Program. Beginning on the
2    effective date of this amendatory Act of the 102nd General
3    Assembly, and notwithstanding anything to the contrary,
4    the Agency's updates to its long-term renewable resources
5    procurement plan pursuant to item (ii) of subparagraph (B)
6    of paragraph (5) of subsection (b) of Section 16-111.5 of
7    the Public Utilities Act shall allocate, for each
8    applicable delivery year, at least 25% of the Adjustable
9    Block program's available funding to the procurement of
10    renewable energy credits from photovoltaic distributed
11    renewable energy generation devices installed at public
12    schools throughout the State. Such procurements shall be
13    designed to support the installation of at least 2.5
14    gigawatts of photovoltaic distributed renewable energy
15    generation devices at public schools by 2030. To ensure
16    that the State remains on track to achieve this goal, and
17    to relieve oversubscriptions to this program, the Agency
18    shall allocate to a given delivery year or years more than
19    25% of the funding available for the Adjustable Block
20    program for such delivery year or years. If the Agency
21    finds that a procurement under this subparagraph (K-10) is
22    oversubscribed such that the number of eligible projects
23    exceeds the available funding, the Agency shall prioritize
24    the procurement of renewable energy credits from
25    photovoltaic distributed renewable energy generation
26    devices installed at public schools based on a scoring

 

 

10200SB1100sam001- 137 -LRB102 04924 SPS 24488 a

1    system that takes into account, and gives the highest
2    prioritization to, the following factors:
3            (i) projects located within environmental justice
4        communities or within Organizational Units that fall
5        within Tier 1 or Tier 2, which criteria shall be given
6        the highest of all priorities;
7            (ii) projects that serve greater than 90% of a
8        school facility's electricity usage;
9            (iii) projects that are done in coordination with
10        significant energy efficiency efforts; and
11            (iv) projects that support decarbonization of
12        heating systems and transportation.
13        The Agency shall also include in such a scoring system
14    those additional criteria from items (i) through (vii) of
15    subparagraph (K-5) of this paragraph (1) that are
16    reasonably helpful in advancing the goals of this
17    subparagraph (K-10).
18        For purposes of this subparagraph (K-10):
19            "Distributed renewable energy generation device"
20        shall have the meaning set forth in Section 1-10 of
21        this Act, except that the 2,000 kilowatts limitation
22        on nameplate capacity imposed by paragraph (4) of such
23        definition shall be increased to 5,000 kilowatts;
24            "Environmental justice communities" shall have the
25        meaning set forth in the Agency's Long-Term Renewable
26        Resources Procurement Plan;

 

 

10200SB1100sam001- 138 -LRB102 04924 SPS 24488 a

1            "Organization Unit", "Tier 1", and "Tier 2" shall
2        have the meanings set forth in Section 18-8.15 of the
3        School Code; and
4            "Public schools" shall have the meaning set forth
5        in Section 1-3 of the School Code.
6        The Agency's update to its long-term renewable
7    resources procurement plan to incorporate the procurement
8    described in this subparagraph (K-10) shall also include
9    the proposed quantities or blocks, pricing, and contract
10    terms applicable to the procurement; however, the price
11    shall not be set at an amount that is less than $60 per
12    renewable energy credit and the contract length shall be
13    for 25 years. The Agency shall establish pricing and
14    payment terms for the renewable energy credits procured
15    pursuant to this subparagraph (K-10) that make it feasible
16    and affordable for public schools to install photovoltaic
17    distributed renewable energy devices on their premises,
18    including, but not limited to, those public schools
19    subject to the prioritization provisions of this
20    subparagraph. In no event shall the contract payment term
21    period extend beyond the period set forth in item (iii) of
22    subparagraph (L) of this paragraph (1), and the Agency
23    shall be permitted to shorten this period in order to
24    achieve the objectives identified in this subparagraph
25    (K-10).
26        (L) The procurement of photovoltaic renewable energy

 

 

10200SB1100sam001- 139 -LRB102 04924 SPS 24488 a

1    credits under items (i) through (iv) of subparagraph (K)
2    of this paragraph (1) shall be subject to the following
3    contract and payment terms:
4            (i) The Agency shall procure contracts of at least
5        15 years in length.
6            (ii) For those renewable energy credits that
7        qualify and are procured under item (i) of
8        subparagraph (K) of this paragraph (1), the renewable
9        energy credit purchase price shall be paid in full by
10        the contracting utilities at the time that the
11        facility producing the renewable energy credits is
12        interconnected at the distribution system level of the
13        utility and energized; however, for those contracts
14        executed after the effective date of this amendatory
15        Act of the 102nd General Assembly, such purchase price
16        shall be paid in full by the contracting utilities at
17        the time that the facility producing the renewable
18        energy credits is interconnected at the distribution
19        system level of the utility and energized and after
20        the supplier submits proof of compliance with
21        subsection (d-20) of this Section. The electric
22        utility shall receive and retire all renewable energy
23        credits generated by the project for the first 15
24        years of operation.
25            (iii) For those renewable energy credits that
26        qualify and are procured under item (ii) and (iii) of

 

 

10200SB1100sam001- 140 -LRB102 04924 SPS 24488 a

1        subparagraph (K) of this paragraph (1) and any
2        additional categories of distributed generation
3        included in the long-term renewable resources
4        procurement plan and approved by the Commission, 20
5        percent of the renewable energy credit purchase price
6        shall be paid by the contracting utilities at the time
7        that the facility producing the renewable energy
8        credits is interconnected at the distribution system
9        level of the utility and energized; however, for those
10        contracts executed after the effective date of this
11        amendatory Act of the 102nd General Assembly, such
12        purchase price shall be paid by the contracting
13        utilities at the time that the facility producing the
14        renewable energy credits is interconnected at the
15        distribution system level of the utility and energized
16        and after the supplier submits proof of compliance
17        with subsection (d-20) of this Section. The remaining
18        portion shall be paid ratably over the subsequent
19        4-year period. The electric utility shall receive and
20        retire all renewable energy credits generated by the
21        project for the first 15 years of operation.
22            (iv) Each contract shall include provisions to
23        ensure the delivery of the renewable energy credits
24        for the full term of the contract.
25            (v) The utility shall be the counterparty to the
26        contracts executed under this subparagraph (L) that

 

 

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

 

 

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

 

 

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1    capacity block, or other program element that do not
2    deviate from the Commission's approved value by more than
3    25% shall take effect immediately and are not subject to
4    Commission review and approval. Program modifications to
5    any price, capacity block, or other program element that
6    deviate more than 25% from the Commission's approved value
7    must be approved by the Commission as a long-term plan
8    amendment under Section 16-111.5 of the Public Utilities
9    Act. The Agency shall consider stakeholder feedback when
10    making adjustments to the Adjustable Block design and
11    shall notify stakeholders in advance of any planned
12    changes.
13        (N) The long-term renewable resources procurement plan
14    required by this subsection (c) shall include a community
15    renewable generation program. The Agency shall establish
16    the terms, conditions, and program requirements for
17    community renewable generation projects with a goal to
18    expand renewable energy generating facility access to a
19    broader group of energy consumers, to ensure robust
20    participation opportunities for residential and small
21    commercial customers and those who cannot install
22    renewable energy on their own properties. Any plan
23    approved by the Commission shall allow subscriptions to
24    community renewable generation projects to be portable and
25    transferable. For purposes of this subparagraph (N),
26    "portable" means that subscriptions may be retained by the

 

 

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1    subscriber even if the subscriber relocates or changes its
2    address within the same utility service territory; and
3    "transferable" means that a subscriber may assign or sell
4    subscriptions to another person within the same utility
5    service territory.
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 purchase renewable energy credits
12    from subscribed shares of photovoltaic community renewable
13    generation projects through the Adjustable Block program
14    described in subparagraph (K) of this paragraph (1) or
15    through the Illinois Solar for All Program described in
16    Section 1-56 of this Act. The electric utility shall
17    purchase any unsubscribed energy from community renewable
18    generation projects that are Qualifying Facilities ("QF")
19    under the electric utility's tariff for purchasing the
20    output from QFs under Public Utilities Regulatory Policies
21    Act of 1978.
22        The owners of and any subscribers to a community
23    renewable generation project shall not be considered
24    public utilities or alternative retail electricity
25    suppliers under the Public Utilities Act solely as a
26    result of their interest in or subscription to a community

 

 

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1    renewable generation project and shall not be required to
2    become an alternative retail electric supplier by
3    participating in a community renewable generation project
4    with a public utility.
5        (O) For the delivery year beginning June 1, 2018, the
6    long-term renewable resources procurement plan required by
7    this subsection (c) shall provide for the Agency to
8    procure contracts to continue offering the Illinois Solar
9    for All Program described in subsection (b) of Section
10    1-56 of this Act, and the contracts approved by the
11    Commission shall be executed by the utilities that are
12    subject to this subsection (c). The long-term renewable
13    resources procurement plan shall allocate $75,000,000 5%
14    of the funds available under the plan for the applicable
15    delivery year, or $10,000,000 per delivery year, whichever
16    is greater, to fund the programs, and the plan shall
17    determine the amount of funding to be apportioned to the
18    programs identified in subsection (b) of Section 1-56 of
19    this Act; provided that for the delivery years beginning
20    June 1, 2017, June 1, 2021, and June 1, 2025, the long-term
21    renewable resources procurement plan shall allocate
22    $85,000,000 10% of the funds available under the plan for
23    the applicable delivery year, or $20,000,000 per delivery
24    year, whichever is greater, and $10,000,000 of such funds
25    in such year shall be used by an electric utility that
26    serves more than 3,000,000 retail customers in the State

 

 

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1    to implement a Commission-approved plan under Section
2    16-108.12 of the Public Utilities Act. In making the
3    determinations required under this subparagraph (O), the
4    Commission shall consider the experience and performance
5    under the programs and any evaluation reports. The
6    Commission shall also provide for an independent
7    evaluation of those programs on a periodic basis that are
8    funded under this subparagraph (O).
9        The Agency shall be permitted to revise its long-term
10    renewable resources procurement plan to conform its
11    provisions to the changes made by this amendatory Act of
12    the 102nd General Assembly and shall submit the revised
13    plan to the Commission as a compliance filing.
14        (2) (Blank).
15        (3) (Blank).
16        (4) The electric utility shall retire all renewable
17    energy credits used to comply with the standard.
18        (5) Beginning with the 2010 delivery year and ending
19    June 1, 2017, an electric utility subject to this
20    subsection (c) shall apply the lesser of the maximum
21    alternative compliance payment rate or the most recent
22    estimated alternative compliance payment rate for its
23    service territory for the corresponding compliance period,
24    established pursuant to subsection (d) of Section 16-115D
25    of the Public Utilities Act to its retail customers that
26    take service pursuant to the electric utility's hourly

 

 

10200SB1100sam001- 147 -LRB102 04924 SPS 24488 a

1    pricing tariff or tariffs. The electric utility shall
2    retain all amounts collected as a result of the
3    application of the alternative compliance payment rate or
4    rates to such customers, and, beginning in 2011, the
5    utility shall include in the information provided under
6    item (1) of subsection (d) of Section 16-111.5 of the
7    Public Utilities Act the amounts collected under the
8    alternative compliance payment rate or rates for the prior
9    year ending May 31. Notwithstanding any limitation on the
10    procurement of renewable energy resources imposed by item
11    (2) of this subsection (c), the Agency shall increase its
12    spending on the purchase of renewable energy resources to
13    be procured by the electric utility for the next plan year
14    by an amount equal to the amounts collected by the utility
15    under the alternative compliance payment rate or rates in
16    the prior year ending May 31.
17        (6) The electric utility shall be entitled to recover
18    all of its costs associated with the procurement of
19    renewable energy credits under plans approved under this
20    Section and Section 16-111.5 of the Public Utilities Act.
21    These costs shall include associated reasonable expenses
22    for implementing the procurement programs, including, but
23    not limited to, the costs of administering and evaluating
24    the Adjustable Block program, through an automatic
25    adjustment clause tariff in accordance with subsection (k)
26    of Section 16-108 of the Public Utilities Act.

 

 

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1        (7) Renewable energy credits procured from new
2    photovoltaic projects or new distributed renewable energy
3    generation devices under this Section after June 1, 2017
4    (the effective date of Public Act 99-906) must be procured
5    from devices installed by a qualified person in compliance
6    with the requirements of Section 16-128A of the Public
7    Utilities Act and any rules or regulations adopted
8    thereunder. Beginning after the effective date of this
9    amendatory Act of the 102nd General Assembly, the Agency
10    shall require, prior to participating in a procurement
11    held under this Section, that each proposed new
12    photovoltaic project or new distributed renewable energy
13    generation device demonstrate that the installer of such
14    project or device is a qualified person under and in
15    compliance with Section 16-128A and any rules adopted
16    thereunder. Each such project or device that is selected
17    in a procurement shall be required to certify to the
18    Agency that it was installed by such qualified person, and
19    the Agency shall notify the applicable electric utility of
20    whether the project or device provided the certification.
21    The electric utility's contract with each such project or
22    device shall require that the utility receive notice from
23    the Agency that the certification requirement has been met
24    prior to the utility initiating any payment to the project
25    or device under the contract. No payment shall be due
26    under the contract if the project or device was not

 

 

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1    installed by a qualified person under Section 16-128A and
2    any rules adopted thereunder.
3        In meeting the renewable energy requirements of this
4    subsection (c), to the extent feasible and consistent with
5    State and federal law, the renewable energy credit
6    procurements, Adjustable Block solar program, and
7    community renewable generation program shall provide
8    employment opportunities for all segments of the
9    population and workforce, including minority-owned
10    businesses, women-owned businesses, veteran-owned
11    businesses, and businesses owned by a person with a
12    disability and female-owned business enterprises, and
13    shall not, consistent with State and federal law,
14    discriminate based on race or socioeconomic status.
15    (d) Clean coal portfolio standard.
16        (1) The procurement plans shall include electricity
17    generated using clean coal. Each utility shall enter into
18    one or more sourcing agreements with the initial clean
19    coal facility, as provided in paragraph (3) of this
20    subsection (d), covering electricity generated by the
21    initial clean coal facility representing at least 5% of
22    each utility's total supply to serve the load of eligible
23    retail customers in 2015 and each year thereafter, as
24    described in paragraph (3) of this subsection (d), subject
25    to the limits specified in paragraph (2) of this
26    subsection (d). It is the goal of the State that by January

 

 

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1    1, 2025, 25% of the electricity used in the State shall be
2    generated by cost-effective clean coal facilities. For
3    purposes of this subsection (d), "cost-effective" means
4    that the expenditures pursuant to such sourcing agreements
5    do not cause the limit stated in paragraph (2) of this
6    subsection (d) to be exceeded and do not exceed cost-based
7    benchmarks, which shall be developed to assess all
8    expenditures pursuant to such sourcing agreements covering
9    electricity generated by clean coal facilities, other than
10    the initial clean coal facility, by the procurement
11    administrator, in consultation with the Commission staff,
12    Agency staff, and the procurement monitor and shall be
13    subject to Commission review and approval.
14        A utility party to a sourcing agreement shall
15    immediately retire any emission credits that it receives
16    in connection with the electricity covered by such
17    agreement.
18        Utilities shall maintain adequate records documenting
19    the purchases under the sourcing agreement to comply with
20    this subsection (d) and shall file an accounting with the
21    load forecast that must be filed with the Agency by July 15
22    of each year, in accordance with subsection (d) of Section
23    16-111.5 of the Public Utilities Act.
24        A utility shall be deemed to have complied with the
25    clean coal portfolio standard specified in this subsection
26    (d) if the utility enters into a sourcing agreement as

 

 

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1    required by this subsection (d).
2        (2) For purposes of this subsection (d), the required
3    execution of sourcing agreements with the initial clean
4    coal facility for a particular year shall be measured as a
5    percentage of the actual amount of electricity
6    (megawatt-hours) supplied by the electric utility to
7    eligible retail customers in the planning year ending
8    immediately prior to the agreement's execution. For
9    purposes of this subsection (d), the amount paid per
10    kilowatthour means the total amount paid for electric
11    service expressed on a per kilowatthour basis. For
12    purposes of this subsection (d), the total amount paid for
13    electric service includes without limitation amounts paid
14    for supply, transmission, distribution, surcharges and
15    add-on taxes.
16        Notwithstanding the requirements of this subsection
17    (d), the total amount paid under sourcing agreements with
18    clean coal facilities pursuant to the procurement plan for
19    any given year shall be reduced by an amount necessary to
20    limit the annual estimated average net increase due to the
21    costs of these resources included in the amounts paid by
22    eligible retail customers in connection with electric
23    service to:
24            (A) in 2010, no more than 0.5% of the amount paid
25        per kilowatthour by those customers during the year
26        ending May 31, 2009;

 

 

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1            (B) in 2011, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2010 or 1% of the amount
4        paid per kilowatthour by those customers during the
5        year ending May 31, 2009;
6            (C) in 2012, the greater of an additional 0.5% of
7        the amount paid per kilowatthour by those customers
8        during the year ending May 31, 2011 or 1.5% of the
9        amount paid per kilowatthour by those customers during
10        the year ending May 31, 2009;
11            (D) in 2013, the greater of an additional 0.5% of
12        the amount paid per kilowatthour by those customers
13        during the year ending May 31, 2012 or 2% of the amount
14        paid per kilowatthour by those customers during the
15        year ending May 31, 2009; and
16            (E) thereafter, the total amount paid under
17        sourcing agreements with clean coal facilities
18        pursuant to the procurement plan for any single year
19        shall be reduced by an amount necessary to limit the
20        estimated average net increase due to the cost of
21        these resources included in the amounts paid by
22        eligible retail customers in connection with electric
23        service to no more than the greater of (i) 2.015% of
24        the amount paid per kilowatthour by those customers
25        during the year ending May 31, 2009 or (ii) the
26        incremental amount per kilowatthour paid for these

 

 

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1        resources in 2013. These requirements may be altered
2        only as provided by statute.
3        No later than June 30, 2015, the Commission shall
4    review the limitation on the total amount paid under
5    sourcing agreements, if any, with clean coal facilities
6    pursuant to this subsection (d) and report to the General
7    Assembly its findings as to whether that limitation unduly
8    constrains the amount of electricity generated by
9    cost-effective clean coal facilities that is covered by
10    sourcing agreements.
11        (3) Initial clean coal facility. In order to promote
12    development of clean coal facilities in Illinois, each
13    electric utility subject to this Section shall execute a
14    sourcing agreement to source electricity from a proposed
15    clean coal facility in Illinois (the "initial clean coal
16    facility") that will have a nameplate capacity of at least
17    500 MW when commercial operation commences, that has a
18    final Clean Air Act permit on June 1, 2009 (the effective
19    date of Public Act 95-1027), and that will meet the
20    definition of clean coal facility in Section 1-10 of this
21    Act when commercial operation commences. The sourcing
22    agreements with this initial clean coal facility shall be
23    subject to both approval of the initial clean coal
24    facility by the General Assembly and satisfaction of the
25    requirements of paragraph (4) of this subsection (d) and
26    shall be executed within 90 days after any such approval

 

 

10200SB1100sam001- 154 -LRB102 04924 SPS 24488 a

1    by the General Assembly. The Agency and the Commission
2    shall have authority to inspect all books and records
3    associated with the initial clean coal facility during the
4    term of such a sourcing agreement. A utility's sourcing
5    agreement for electricity produced by the initial clean
6    coal facility shall include:
7            (A) a formula contractual price (the "contract
8        price") approved pursuant to paragraph (4) of this
9        subsection (d), which shall:
10                (i) be determined using a cost of service
11            methodology employing either a level or deferred
12            capital recovery component, based on a capital
13            structure consisting of 45% equity and 55% debt,
14            and a return on equity as may be approved by the
15            Federal Energy Regulatory Commission, which in any
16            case may not exceed the lower of 11.5% or the rate
17            of return approved by the General Assembly
18            pursuant to paragraph (4) of this subsection (d);
19            and
20                (ii) provide that all miscellaneous net
21            revenue, including but not limited to net revenue
22            from the sale of emission allowances, if any,
23            substitute natural gas, if any, grants or other
24            support provided by the State of Illinois or the
25            United States Government, firm transmission
26            rights, if any, by-products produced by the

 

 

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1            facility, energy or capacity derived from the
2            facility and not covered by a sourcing agreement
3            pursuant to paragraph (3) of this subsection (d)
4            or item (5) of subsection (d) of Section 16-115 of
5            the Public Utilities Act, whether generated from
6            the synthesis gas derived from coal, from SNG, or
7            from natural gas, shall be credited against the
8            revenue requirement for this initial clean coal
9            facility;
10            (B) power purchase provisions, which shall:
11                (i) provide that the utility party to such
12            sourcing agreement shall pay the contract price
13            for electricity delivered under such sourcing
14            agreement;
15                (ii) require delivery of electricity to the
16            regional transmission organization market of the
17            utility that is party to such sourcing agreement;
18                (iii) require the utility party to such
19            sourcing agreement to buy from the initial clean
20            coal facility in each hour an amount of energy
21            equal to all clean coal energy made available from
22            the initial clean coal facility during such hour
23            times a fraction, the numerator of which is such
24            utility's retail market sales of electricity
25            (expressed in kilowatthours sold) in the State
26            during the prior calendar month and the

 

 

10200SB1100sam001- 156 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 157 -LRB102 04924 SPS 24488 a

1            during the prior calendar month and the
2            denominator of which is the total retail market
3            sales of electricity (expressed in kilowatthours
4            sold) in the State by utilities during such prior
5            month and the sales of electricity (expressed in
6            kilowatthours sold) in the State by alternative
7            retail electric suppliers during such prior month
8            that are subject to the requirements of this
9            subsection (d) and paragraph (5) of subsection (d)
10            of Section 16-115 of the Public Utilities Act,
11            provided that the amount paid by the utility in
12            any year will be limited by paragraph (2) of this
13            subsection (d);
14                (ii) provide that the utility's payment
15            obligation in respect of the quantity of
16            electricity determined pursuant to the preceding
17            clause (i) shall be limited to an amount equal to
18            (1) the difference between the contract price
19            determined pursuant to subparagraph (A) of
20            paragraph (3) of this subsection (d) and the
21            day-ahead price for electricity delivered to the
22            regional transmission organization market of the
23            utility that is party to such sourcing agreement
24            (or any successor delivery point at which such
25            utility's supply obligations are financially
26            settled on an hourly basis) (the "reference

 

 

10200SB1100sam001- 158 -LRB102 04924 SPS 24488 a

1            price") on the day preceding the day on which the
2            electricity is delivered to the initial clean coal
3            facility busbar, multiplied by (2) the quantity of
4            electricity determined pursuant to the preceding
5            clause (i); and
6                (iii) not require the utility to take physical
7            delivery of the electricity produced by the
8            facility;
9            (D) general provisions, which shall:
10                (i) specify a term of no more than 30 years,
11            commencing on the commercial operation date of the
12            facility;
13                (ii) provide that utilities shall maintain
14            adequate records documenting purchases under the
15            sourcing agreements entered into to comply with
16            this subsection (d) and shall file an accounting
17            with the load forecast that must be filed with the
18            Agency by July 15 of each year, in accordance with
19            subsection (d) of Section 16-111.5 of the Public
20            Utilities Act;
21                (iii) provide that all costs associated with
22            the initial clean coal facility will be
23            periodically reported to the Federal Energy
24            Regulatory Commission and to purchasers in
25            accordance with applicable laws governing
26            cost-based wholesale power contracts;

 

 

10200SB1100sam001- 159 -LRB102 04924 SPS 24488 a

1                (iv) permit the Illinois Power Agency to
2            assume ownership of the initial clean coal
3            facility, without monetary consideration and
4            otherwise on reasonable terms acceptable to the
5            Agency, if the Agency so requests no less than 3
6            years prior to the end of the stated contract
7            term;
8                (v) require the owner of the initial clean
9            coal facility to provide documentation to the
10            Commission each year, starting in the facility's
11            first year of commercial operation, accurately
12            reporting the quantity of carbon emissions from
13            the facility that have been captured and
14            sequestered and report any quantities of carbon
15            released from the site or sites at which carbon
16            emissions were sequestered in prior years, based
17            on continuous monitoring of such sites. If, in any
18            year after the first year of commercial operation,
19            the owner of the facility fails to demonstrate
20            that the initial clean coal facility captured and
21            sequestered at least 50% of the total carbon
22            emissions that the facility would otherwise emit
23            or that sequestration of emissions from prior
24            years has failed, resulting in the release of
25            carbon dioxide into the atmosphere, the owner of
26            the facility must offset excess emissions. Any

 

 

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1            such carbon offsets must be permanent, additional,
2            verifiable, real, located within the State of
3            Illinois, and legally and practicably enforceable.
4            The cost of such offsets for the facility that are
5            not recoverable shall not exceed $15 million in
6            any given year. No costs of any such purchases of
7            carbon offsets may be recovered from a utility or
8            its customers. All carbon offsets purchased for
9            this purpose and any carbon emission credits
10            associated with sequestration of carbon from the
11            facility must be permanently retired. The initial
12            clean coal facility shall not forfeit its
13            designation as a clean coal facility if the
14            facility fails to fully comply with the applicable
15            carbon sequestration requirements in any given
16            year, provided the requisite offsets are
17            purchased. However, the Attorney General, on
18            behalf of the People of the State of Illinois, may
19            specifically enforce the facility's sequestration
20            requirement and the other terms of this contract
21            provision. Compliance with the sequestration
22            requirements and offset purchase requirements
23            specified in paragraph (3) of this subsection (d)
24            shall be reviewed annually by an independent
25            expert retained by the owner of the initial clean
26            coal facility, with the advance written approval

 

 

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1            of the Attorney General. The Commission may, in
2            the course of the review specified in item (vii),
3            reduce the allowable return on equity for the
4            facility if the facility willfully fails to comply
5            with the carbon capture and sequestration
6            requirements set forth in this item (v);
7                (vi) include limits on, and accordingly
8            provide for modification of, the amount the
9            utility is required to source under the sourcing
10            agreement consistent with paragraph (2) of this
11            subsection (d);
12                (vii) require Commission review: (1) to
13            determine the justness, reasonableness, and
14            prudence of the inputs to the formula referenced
15            in subparagraphs (A)(i) through (A)(iii) of
16            paragraph (3) of this subsection (d), prior to an
17            adjustment in those inputs including, without
18            limitation, the capital structure and return on
19            equity, fuel costs, and other operations and
20            maintenance costs and (2) to approve the costs to
21            be passed through to customers under the sourcing
22            agreement by which the utility satisfies its
23            statutory obligations. Commission review shall
24            occur no less than every 3 years, regardless of
25            whether any adjustments have been proposed, and
26            shall be completed within 9 months;

 

 

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1                (viii) limit the utility's obligation to such
2            amount as the utility is allowed to recover
3            through tariffs filed with the Commission,
4            provided that neither the clean coal facility nor
5            the utility waives any right to assert federal
6            preemption pre-emption or any other argument in
7            response to a purported disallowance of recovery
8            costs;
9                (ix) limit the utility's or alternative retail
10            electric supplier's obligation to incur any
11            liability until such time as the facility is in
12            commercial operation and generating power and
13            energy and such power and energy is being
14            delivered to the facility busbar;
15                (x) provide that the owner or owners of the
16            initial clean coal facility, which is the
17            counterparty to such sourcing agreement, shall
18            have the right from time to time to elect whether
19            the obligations of the utility party thereto shall
20            be governed by the power purchase provisions or
21            the contract for differences provisions;
22                (xi) append documentation showing that the
23            formula rate and contract, insofar as they relate
24            to the power purchase provisions, have been
25            approved by the Federal Energy Regulatory
26            Commission pursuant to Section 205 of the Federal

 

 

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1            Power Act;
2                (xii) provide that any changes to the terms of
3            the contract, insofar as such changes relate to
4            the power purchase provisions, are subject to
5            review under the public interest standard applied
6            by the Federal Energy Regulatory Commission
7            pursuant to Sections 205 and 206 of the Federal
8            Power Act; and
9                (xiii) conform with customary lender
10            requirements in power purchase agreements used as
11            the basis for financing non-utility generators.
12        (4) Effective date of sourcing agreements with the
13    initial clean coal facility. Any proposed sourcing
14    agreement with the initial clean coal facility shall not
15    become effective unless the following reports are prepared
16    and submitted and authorizations and approvals obtained:
17            (i) Facility cost report. The owner of the initial
18        clean coal facility shall submit to the Commission,
19        the Agency, and the General Assembly a front-end
20        engineering and design study, a facility cost report,
21        method of financing (including but not limited to
22        structure and associated costs), and an operating and
23        maintenance cost quote for the facility (collectively
24        "facility cost report"), which shall be prepared in
25        accordance with the requirements of this paragraph (4)
26        of subsection (d) of this Section, and shall provide

 

 

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1        the Commission and the Agency access to the work
2        papers, relied upon documents, and any other backup
3        documentation related to the facility cost report.
4            (ii) Commission report. Within 6 months following
5        receipt of the facility cost report, the Commission,
6        in consultation with the Agency, shall submit a report
7        to the General Assembly setting forth its analysis of
8        the facility cost report. Such report shall include,
9        but not be limited to, a comparison of the costs
10        associated with electricity generated by the initial
11        clean coal facility to the costs associated with
12        electricity generated by other types of generation
13        facilities, an analysis of the rate impacts on
14        residential and small business customers over the life
15        of the sourcing agreements, and an analysis of the
16        likelihood that the initial clean coal facility will
17        commence commercial operation by and be delivering
18        power to the facility's busbar by 2016. To assist in
19        the preparation of its report, the Commission, in
20        consultation with the Agency, may hire one or more
21        experts or consultants, the costs of which shall be
22        paid for by the owner of the initial clean coal
23        facility. The Commission and Agency may begin the
24        process of selecting such experts or consultants prior
25        to receipt of the facility cost report.
26            (iii) General Assembly approval. The proposed

 

 

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1        sourcing agreements shall not take effect unless,
2        based on the facility cost report and the Commission's
3        report, the General Assembly enacts authorizing
4        legislation approving (A) the projected price, stated
5        in cents per kilowatthour, to be charged for
6        electricity generated by the initial clean coal
7        facility, (B) the projected impact on residential and
8        small business customers' bills over the life of the
9        sourcing agreements, and (C) the maximum allowable
10        return on equity for the project; and
11            (iv) Commission review. If the General Assembly
12        enacts authorizing legislation pursuant to
13        subparagraph (iii) approving a sourcing agreement, the
14        Commission shall, within 90 days of such enactment,
15        complete a review of such sourcing agreement. During
16        such time period, the Commission shall implement any
17        directive of the General Assembly, resolve any
18        disputes between the parties to the sourcing agreement
19        concerning the terms of such agreement, approve the
20        form of such agreement, and issue an order finding
21        that the sourcing agreement is prudent and reasonable.
22        The facility cost report shall be prepared as follows:
23            (A) The facility cost report shall be prepared by
24        duly licensed engineering and construction firms
25        detailing the estimated capital costs payable to one
26        or more contractors or suppliers for the engineering,

 

 

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1        procurement and construction of the components
2        comprising the initial clean coal facility and the
3        estimated costs of operation and maintenance of the
4        facility. The facility cost report shall include:
5                (i) an estimate of the capital cost of the
6            core plant based on one or more front end
7            engineering and design studies for the
8            gasification island and related facilities. The
9            core plant shall include all civil, structural,
10            mechanical, electrical, control, and safety
11            systems.
12                (ii) an estimate of the capital cost of the
13            balance of the plant, including any capital costs
14            associated with sequestration of carbon dioxide
15            emissions and all interconnects and interfaces
16            required to operate the facility, such as
17            transmission of electricity, construction or
18            backfeed power supply, pipelines to transport
19            substitute natural gas or carbon dioxide, potable
20            water supply, natural gas supply, water supply,
21            water discharge, landfill, access roads, and coal
22            delivery.
23            The quoted construction costs shall be expressed
24        in nominal dollars as of the date that the quote is
25        prepared and shall include capitalized financing costs
26        during construction, taxes, insurance, and other

 

 

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1        owner's costs, and an assumed escalation in materials
2        and labor beyond the date as of which the construction
3        cost quote is expressed.
4            (B) The front end engineering and design study for
5        the gasification island and the cost study for the
6        balance of plant shall include sufficient design work
7        to permit quantification of major categories of
8        materials, commodities and labor hours, and receipt of
9        quotes from vendors of major equipment required to
10        construct and operate the clean coal facility.
11            (C) The facility cost report shall also include an
12        operating and maintenance cost quote that will provide
13        the estimated cost of delivered fuel, personnel,
14        maintenance contracts, chemicals, catalysts,
15        consumables, spares, and other fixed and variable
16        operations and maintenance costs. The delivered fuel
17        cost estimate will be provided by a recognized third
18        party expert or experts in the fuel and transportation
19        industries. The balance of the operating and
20        maintenance cost quote, excluding delivered fuel
21        costs, will be developed based on the inputs provided
22        by duly licensed engineering and construction firms
23        performing the construction cost quote, potential
24        vendors under long-term service agreements and plant
25        operating agreements, or recognized third party plant
26        operator or operators.

 

 

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1            The operating and maintenance cost quote
2        (including the cost of the front end engineering and
3        design study) shall be expressed in nominal dollars as
4        of the date that the quote is prepared and shall
5        include taxes, insurance, and other owner's costs, and
6        an assumed escalation in materials and labor beyond
7        the date as of which the operating and maintenance
8        cost quote is expressed.
9            (D) The facility cost report shall also include an
10        analysis of the initial clean coal facility's ability
11        to deliver power and energy into the applicable
12        regional transmission organization markets and an
13        analysis of the expected capacity factor for the
14        initial clean coal facility.
15            (E) Amounts paid to third parties unrelated to the
16        owner or owners of the initial clean coal facility to
17        prepare the core plant construction cost quote,
18        including the front end engineering and design study,
19        and the operating and maintenance cost quote will be
20        reimbursed through Coal Development Bonds.
21        (5) Re-powering and retrofitting coal-fired power
22    plants previously owned by Illinois utilities to qualify
23    as clean coal facilities. During the 2009 procurement
24    planning process and thereafter, the Agency and the
25    Commission shall consider sourcing agreements covering
26    electricity generated by power plants that were previously

 

 

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1    owned by Illinois utilities and that have been or will be
2    converted into clean coal facilities, as defined by
3    Section 1-10 of this Act. Pursuant to such procurement
4    planning process, the owners of such facilities may
5    propose to the Agency sourcing agreements with utilities
6    and alternative retail electric suppliers required to
7    comply with subsection (d) of this Section and item (5) of
8    subsection (d) of Section 16-115 of the Public Utilities
9    Act, covering electricity generated by such facilities. In
10    the case of sourcing agreements that are power purchase
11    agreements, the contract price for electricity sales shall
12    be established on a cost of service basis. In the case of
13    sourcing agreements that are contracts for differences,
14    the contract price from which the reference price is
15    subtracted shall be established on a cost of service
16    basis. The Agency and the Commission may approve any such
17    utility sourcing agreements that do not exceed cost-based
18    benchmarks developed by the procurement administrator, in
19    consultation with the Commission staff, Agency staff and
20    the procurement monitor, subject to Commission review and
21    approval. The Commission shall have authority to inspect
22    all books and records associated with these clean coal
23    facilities during the term of any such contract.
24        (6) Costs incurred under this subsection (d) or
25    pursuant to a contract entered into under this subsection
26    (d) shall be deemed prudently incurred and reasonable in

 

 

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1    amount and the electric utility shall be entitled to full
2    cost recovery pursuant to the tariffs filed with the
3    Commission.
4    (d-5) Zero emission standard.
5        (1) Beginning with the delivery year commencing on
6    June 1, 2017, the Agency shall, for electric utilities
7    that serve at least 100,000 retail customers in this
8    State, procure contracts with zero emission facilities
9    that are reasonably capable of generating cost-effective
10    zero emission credits in an amount approximately equal to
11    16% of the actual amount of electricity delivered by each
12    electric utility to retail customers in the State during
13    calendar year 2014. For an electric utility serving fewer
14    than 100,000 retail customers in this State that
15    requested, under Section 16-111.5 of the Public Utilities
16    Act, that the Agency procure power and energy for all or a
17    portion of the utility's Illinois load for the delivery
18    year commencing June 1, 2016, the Agency shall procure
19    contracts with zero emission facilities that are
20    reasonably capable of generating cost-effective zero
21    emission credits in an amount approximately equal to 16%
22    of the portion of power and energy to be procured by the
23    Agency for the utility. The duration of the contracts
24    procured under this subsection (d-5) shall be for a term
25    of 10 years ending May 31, 2027. The quantity of zero
26    emission credits to be procured under the contracts shall

 

 

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1    be all of the zero emission credits generated by the zero
2    emission facility in each delivery year; however, if the
3    zero emission facility is owned by more than one entity,
4    then the quantity of zero emission credits to be procured
5    under the contracts shall be the amount of zero emission
6    credits that are generated from the portion of the zero
7    emission facility that is owned by the winning supplier.
8        The 16% value identified in this paragraph (1) is the
9    average of the percentage targets in subparagraph (B) of
10    paragraph (1) of subsection (c) of this Section for the 5
11    delivery years beginning June 1, 2017.
12        The procurement process shall be subject to the
13    following provisions:
14            (A) Those zero emission facilities that intend to
15        participate in the procurement shall submit to the
16        Agency the following eligibility information for each
17        zero emission facility on or before the date
18        established by the Agency:
19                (i) the in-service date and remaining useful
20            life of the zero emission facility;
21                (ii) the amount of power generated annually
22            for each of the years 2005 through 2015, and the
23            projected zero emission credits to be generated
24            over the remaining useful life of the zero
25            emission facility, which shall be used to
26            determine the capability of each facility;

 

 

10200SB1100sam001- 172 -LRB102 04924 SPS 24488 a

1                (iii) the annual zero emission facility cost
2            projections, expressed on a per megawatthour
3            basis, over the next 6 delivery years, which shall
4            include the following: operation and maintenance
5            expenses; fully allocated overhead costs, which
6            shall be allocated using the methodology developed
7            by the Institute for Nuclear Power Operations;
8            fuel expenditures; non-fuel capital expenditures;
9            spent fuel expenditures; a return on working
10            capital; the cost of operational and market risks
11            that could be avoided by ceasing operation; and
12            any other costs necessary for continued
13            operations, provided that "necessary" means, for
14            purposes of this item (iii), that the costs could
15            reasonably be avoided only by ceasing operations
16            of the zero emission facility; and
17                (iv) a commitment to continue operating, for
18            the duration of the contract or contracts executed
19            under the procurement held under this subsection
20            (d-5), the zero emission facility that produces
21            the zero emission credits to be procured in the
22            procurement.
23            The information described in item (iii) of this
24        subparagraph (A) may be submitted on a confidential
25        basis and shall be treated and maintained by the
26        Agency, the procurement administrator, and the

 

 

10200SB1100sam001- 173 -LRB102 04924 SPS 24488 a

1        Commission as confidential and proprietary and exempt
2        from disclosure under subparagraphs (a) and (g) of
3        paragraph (1) of Section 7 of the Freedom of
4        Information Act. The Office of Attorney General shall
5        have access to, and maintain the confidentiality of,
6        such information pursuant to Section 6.5 of the
7        Attorney General Act.
8            (B) The price for each zero emission credit
9        procured under this subsection (d-5) for each delivery
10        year shall be in an amount that equals the Social Cost
11        of Carbon, expressed on a price per megawatthour
12        basis. However, to ensure that the procurement remains
13        affordable to retail customers in this State if
14        electricity prices increase, the price in an
15        applicable delivery year shall be reduced below the
16        Social Cost of Carbon by the amount ("Price
17        Adjustment") by which the market price index for the
18        applicable delivery year exceeds the baseline market
19        price index for the consecutive 12-month period ending
20        May 31, 2016. If the Price Adjustment is greater than
21        or equal to the Social Cost of Carbon in an applicable
22        delivery year, then no payments shall be due in that
23        delivery year. The components of this calculation are
24        defined as follows:
25                (i) Social Cost of Carbon: The Social Cost of
26            Carbon is $16.50 per megawatthour, which is based

 

 

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1            on the U.S. Interagency Working Group on Social
2            Cost of Carbon's price in the August 2016
3            Technical Update using a 3% discount rate,
4            adjusted for inflation for each year of the
5            program. Beginning with the delivery year
6            commencing June 1, 2023, the price per
7            megawatthour shall increase by $1 per
8            megawatthour, and continue to increase by an
9            additional $1 per megawatthour each delivery year
10            thereafter.
11                (ii) Baseline market price index: The baseline
12            market price index for the consecutive 12-month
13            period ending May 31, 2016 is $31.40 per
14            megawatthour, which is based on the sum of (aa)
15            the average day-ahead energy price across all
16            hours of such 12-month period at the PJM
17            Interconnection LLC Northern Illinois Hub, (bb)
18            50% multiplied by the Base Residual Auction, or
19            its successor, capacity price for the rest of the
20            RTO zone group determined by PJM Interconnection
21            LLC, divided by 24 hours per day, and (cc) 50%
22            multiplied by the Planning Resource Auction, or
23            its successor, capacity price for Zone 4
24            determined by the Midcontinent Independent System
25            Operator, Inc., divided by 24 hours per day.
26                (iii) Market price index: The market price

 

 

10200SB1100sam001- 175 -LRB102 04924 SPS 24488 a

1            index for a delivery year shall be the sum of
2            projected energy prices and projected capacity
3            prices determined as follows:
4                    (aa) Projected energy prices: the
5                projected energy prices for the applicable
6                delivery year shall be calculated once for the
7                year using the forward market price for the
8                PJM Interconnection, LLC Northern Illinois
9                Hub. The forward market price shall be
10                calculated as follows: the energy forward
11                prices for each month of the applicable
12                delivery year averaged for each trade date
13                during the calendar year immediately preceding
14                that delivery year to produce a single energy
15                forward price for the delivery year. The
16                forward market price calculation shall use
17                data published by the Intercontinental
18                Exchange, or its successor.
19                    (bb) Projected capacity prices:
20                        (I) For the delivery years commencing
21                    June 1, 2017, June 1, 2018, and June 1,
22                    2019, the projected capacity price shall
23                    be equal to the sum of (1) 50% multiplied
24                    by the Base Residual Auction, or its
25                    successor, price for the rest of the RTO
26                    zone group as determined by PJM

 

 

10200SB1100sam001- 176 -LRB102 04924 SPS 24488 a

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

 

 

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1                    is determined by the Midcontinent
2                    Independent System Operator, Inc.
3            For purposes of this subsection (d-5):
4                "Rest of the RTO" and "ComEd Zone" shall have
5            the meaning ascribed to them by PJM
6            Interconnection, LLC.
7                "RTO" means regional transmission
8            organization.
9            (C) No later than 45 days after June 1, 2017 (the
10        effective date of Public Act 99-906), the Agency shall
11        publish its proposed zero emission standard
12        procurement plan. The plan shall be consistent with
13        the provisions of this paragraph (1) and shall provide
14        that winning bids shall be selected based on public
15        interest criteria that include, but are not limited
16        to, minimizing carbon dioxide emissions that result
17        from electricity consumed in Illinois and minimizing
18        sulfur dioxide, nitrogen oxide, and particulate matter
19        emissions that adversely affect the citizens of this
20        State. In particular, the selection of winning bids
21        shall take into account the incremental environmental
22        benefits resulting from the procurement, such as any
23        existing environmental benefits that are preserved by
24        the procurements held under Public Act 99-906 and
25        would cease to exist if the procurements were not
26        held, including the preservation of zero emission

 

 

10200SB1100sam001- 178 -LRB102 04924 SPS 24488 a

1        facilities. The plan shall also describe in detail how
2        each public interest factor shall be considered and
3        weighted in the bid selection process to ensure that
4        the public interest criteria are applied to the
5        procurement and given full effect.
6            For purposes of developing the plan, the Agency
7        shall consider any reports issued by a State agency,
8        board, or commission under House Resolution 1146 of
9        the 98th General Assembly and paragraph (4) of
10        subsection (d) of this Section, as well as publicly
11        available analyses and studies performed by or for
12        regional transmission organizations that serve the
13        State and their independent market monitors.
14            Upon publishing of the zero emission standard
15        procurement plan, copies of the plan shall be posted
16        and made publicly available on the Agency's website.
17        All interested parties shall have 10 days following
18        the date of posting to provide comment to the Agency on
19        the plan. All comments shall be posted to the Agency's
20        website. Following the end of the comment period, but
21        no more than 60 days later than June 1, 2017 (the
22        effective date of Public Act 99-906), the Agency shall
23        revise the plan as necessary based on the comments
24        received and file its zero emission standard
25        procurement plan with the Commission.
26            If the Commission determines that the plan will

 

 

10200SB1100sam001- 179 -LRB102 04924 SPS 24488 a

1        result in the procurement of cost-effective zero
2        emission credits, then the Commission shall, after
3        notice and hearing, but no later than 45 days after the
4        Agency filed the plan, approve the plan or approve
5        with modification. For purposes of this subsection
6        (d-5), "cost-effective" "cost effective" means the
7        projected costs of procuring zero emission credits
8        from zero emission facilities do not cause the limit
9        stated in paragraph (2) of this subsection to be
10        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 citizens of
22            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

 

 

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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    (d-9) Findings related to changes made by this amendatory
10Act of the 102nd General Assembly.
11        (1) Findings. The General Assembly finds that:
12            (A) the health, welfare, and prosperity of all
13        Illinois citizens require that the State of Illinois
14        act to avoid and not increase carbon emissions from
15        electric generation sources while continuing to ensure
16        affordable, stable, and reliable electricity to all
17        citizens;
18            (B) climate changes threaten all of Illinois'
19        residents and communities, due to effects ranging from
20        more frequent flooding to rising temperatures and
21        increasingly severe weather;
22            (C) in light of those challenges, the State must
23        transition to a clean energy future and put itself on a
24        path toward 100% clean energy by 2030;
25            (D) in furtherance of this target, it is also a
26        goal of the State that 100% of the capacity procured

 

 

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1        for retail customers shall be sourced from clean
2        energy resources by 2035;
3            (E) to ensure that Illinois' clean energy
4        investments are designed to achieve the State's clean
5        energy goals while maximizing the environmental and
6        health benefits to Illinoisans, it is critical that
7        the State procure clean energy attributes from clean
8        energy resources capable of producing clean energy at
9        times of day that correspond to the pattern of retail
10        electric consumption; otherwise, production by clean
11        energy resources will not replace production by fossil
12        generation, contrary to Illinois' environmental goals;
13            (F) Illinois' clean energy goals, plans, and
14        procurements must account for the differences between
15        the northern and southern regions of the State,
16        including, but not limited to, geography, population
17        density, patterns of electric usage, and the mix of
18        generation resources in the respective regions;
19            (G) no regional or nationwide program currently
20        imposes a carbon price on all electricity consumed by
21        Illinois's retail electric customers, resulting in
22        economic incentives that are inadequate to preserve
23        existing clean energy resources or construct new clean
24        energy resources on the scale that is required for the
25        State to meet its climate change and environmental
26        goals in either region of the State;

 

 

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1            (H) a State level carbon price is worthy of
2        further study but its efficacy may be limited;
3            (I) although a regional or nationwide carbon
4        pricing regime may be enacted in the future, the
5        urgency of the clean energy and carbon emissions
6        challenge requires action now to recognize the carbon
7        mitigation value that existing and new clean energy
8        resources provide to the State;
9            (J) existing zero emission facilities are among
10        the most reliable sources of clean energy and, because
11        they do not depend on intermittent weather conditions
12        to produce, these facilities can reliably generate
13        carbon-free electricity during all hours of the day,
14        resulting in a close correspondence with the pattern
15        of retail electric consumption;
16            (K) existing clean energy resources currently
17        provide the northern region of the State the ability
18        to achieve greater than a 90% match between customer
19        load and clean generation on an hourly basis;
20            (L) absent immediate action by the State to
21        preserve existing clean energy resources, those
22        resources may retire, new clean energy resources may
23        not be built, and the electric generation needs of
24        Illinois' retail customers may be met instead by
25        facilities that emit significant amounts of carbon
26        pollution and other harmful air pollutants at a high

 

 

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1        social and economic cost;
2            (M) these outcomes would create a significant and
3        imminent risk that the State will materially regress
4        from its current ability to achieve greater than a 90%
5        match between customer load and clean generation, and
6        further halt any progress toward achieving the State's
7        100% clean energy goals by 2030;
8            (N) the State can avoid the health, environmental,
9        economic risks to Illinois families and businesses
10        that would result from inaction while still taking
11        steps to ensure that the electric retail rates paid by
12        Illinois customers are affordable and stable;
13            (O) the State has successfully balanced the
14        objectives of environmental and climate progress with
15        retail-rate affordability and stability in its
16        implementation of existing clean energy and emissions
17        avoidance programs such as the zero emission credit
18        program and renewable portfolio standard program set
19        forth in Section 1-75 of the Illinois Power Agency
20        Act;
21            (P) the zero emission credit program is presently
22        limited to an amount approximately equal to 16% of the
23        power and energy to be procured by the Illinois Power
24        Agency for electric utilities that serve at least
25        100,000 retail customers in this State and the
26        renewable portfolio standard is presently limited to

 

 

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1        procuring cost-effective renewable energy resources
2        equal to a minimum of 25% of electric utility retail
3        load by June 1, 2025, which are inadequate in size to
4        meet the State's present challenges;
5            (Q) building upon the example and success of these
6        programs, implementing a carbon mitigation credit
7        program is necessary in advance of any regional or
8        national action on carbon pricing; and
9            (R) it is in the immediate interest of the People
10        of the State of Illinois for the State to exercise its
11        rights under federal and State law to preserve
12        existing clean energy resources and encourage the
13        development of new clean energy resources while
14        protecting electric retail customers from future
15        increases in retail rates and retail-rate instability
16        that will result in the absence of State action.
17        (2) Policy. Consistent with its findings, the General
18    Assembly declares that it is the policy of the State of
19    Illinois that:
20            (A) the carbon emissions resulting from retail
21        electric service in Illinois should not increase while
22        efforts to form a regional or nationwide carbon
23        pricing regime continue;
24            (B) the State should act to avoid a major setback
25        to its climate and environmental goals that would
26        result from the retirement of existing clean energy

 

 

10200SB1100sam001- 194 -LRB102 04924 SPS 24488 a

1        facilities;
2            (C) the State should preserve and build upon the
3        successes of the zero emission credit program and
4        renewable portfolio standard program set forth in
5        Section 1-75 of the Illinois Power Agency Act;
6            (D) the State should encourage the continued
7        operation of clean and zero emission electric
8        generation resources that minimize the carbon dioxide
9        emissions that result from electricity consumed in
10        Illinois and minimize sulfur dioxide, nitrogen oxide,
11        and particulate matter emissions that adversely affect
12        the citizens of this State;
13            (E) the State's programs and procurements to
14        mitigate carbon emissions, such as the carbon
15        mitigation credit program, should prioritize the
16        preservation of those existing clean energy resources
17        that are most capable of reliably generating power
18        consistently throughout all hours of the day to best
19        match the customers' usage patterns reflected in each
20        electric utility's load shape so that the resources
21        that are preserved are resources that are capable of
22        operating at the time that customers' load occurs;
23            (F) the retail customer protection mechanisms
24        implemented as part of the carbon mitigation credit
25        program should protect retail customers against retail
26        price increases that may result from the

 

 

10200SB1100sam001- 195 -LRB102 04924 SPS 24488 a

1        implementation of a regional or nationwide carbon
2        price, and should promote electric retail-rate
3        stability, predictability, and affordability for the
4        benefit of the State's retail customers;
5            (G) the State should also ensure that its carbon
6        mitigation credit program, as well as other
7        initiatives to reduce carbon emissions, are designed
8        to provide retail customers with the most benefits and
9        value at the lowest cost, which includes, but is not
10        limited to, ensuring that generation resources
11        receiving State support are capable of meeting
12        customer demand reliably throughout all hours of the
13        day;
14            (H) the State should require that carbon
15        mitigation credits be cost-effective and that their
16        cost not exceed price benchmarks for like products or
17        the amounts paid by eligible retail customers for
18        renewable energy resource procurements; and
19            (I) the carbon mitigation credit program should
20        work in harmony with all State and federal
21        requirements imposed on electric utilities and
22        electric generating facilities.
23    (d-10)(1) In order to promote the State's transition to a
24clean energy economy while also mitigating the potential for
25retail-rate instability associated with initiating the
26regulation of carbon emissions, and notwithstanding any other

 

 

10200SB1100sam001- 196 -LRB102 04924 SPS 24488 a

1provision of this Act or the Public Utilities Act, each
2electric utility that serves more than 3,000,000 retail
3customers in this State shall enter into contracts with clean
4energy resources that are procured by the Agency and approved
5by the Commission pursuant to this subsection (d-10). The
6Agency shall conduct procurement events to procure contracts
7with clean energy resources that are reasonably capable of
8generating cost-effective carbon mitigation credits in the
9amounts identified in this subsection (d-10). Such contracts
10shall also include the retail customer protections described
11in this subsection (d-10), including, but not limited to,
12those set forth in paragraphs (3), (3.5), and (8) of this
13subsection (d-10) to mitigate retail-rate increases that may
14otherwise result from the regulation of carbon emissions. The
15contracts shall be entered into as the result of a competitive
16procurement event or events, and, to the extent that any
17provisions of this Act or Section 16-111.5 of the Public
18Utilities Act do not conflict with this subsection (d-10),
19such provisions shall apply to the procurement event or
20events.
21    Beginning with the delivery year commencing June 1, 2022,
22the Agency shall seek to procure approximately 74,000,000
23cost-effective carbon mitigation credits, which is needed to
24maintain current levels of clean energy generation and to
25ensure 100% clean energy by 2030.
26    For purposes of this Section:

 

 

10200SB1100sam001- 197 -LRB102 04924 SPS 24488 a

1    "Carbon mitigation credit" means a tradable credit that
2represents the carbon emission reduction attributes of one
3megawatt-hour of energy produced from a clean energy resource.
4    "Clean energy resource" means renewable energy resources
5interconnected to PJM Interconnection, LLC, and zero emission
6facilities interconnected to PJM Interconnection, LLC.
7    (1.5) This paragraph (1.5) applies to each electric
8utility that serves more than 3,000,000 retail customers in
9the State. No later than 36 months prior to the termination
10date of the contract or contracts executed by such electric
11utility for the purchase of zero emission credits under
12subsection (d-5) of this Section, the Agency shall be
13permitted to timely conduct an additional procurement or
14procurements under this subsection (d-10) to procure
15approximately 11,600,000 carbon mitigation credits. Such
16procurement or procurements for carbon mitigation credits
17shall be subject to the requirements of this subsection (d-10)
18to the extent practicable, and the contracts for such carbon
19mitigation credits shall be designed to commence, and require
20delivery beginning, immediately after the termination date of
21the contracts executed pursuant to subsection (d-5) of this
22Section.
23    (2) Each clean energy resource that intends to participate
24in a procurement shall be required to demonstrate financial
25need, which shall be accomplished by submitting to the Agency
26the following information for the resource on or before the

 

 

10200SB1100sam001- 198 -LRB102 04924 SPS 24488 a

1date established by the Agency:
2        (A) the in-service date and remaining useful life of
3    the clean energy resource;
4        (B) the amount of power generated annually for each of
5    the past 10 years, which shall be used to determine the
6    capability of each facility;
7        (C) the clean energy resource's annual cost
8    projections, expressed on a per megawatt-hour basis, over
9    the next 4 delivery years, which shall include the
10    following, as applicable: operation and maintenance
11    expenses; fully allocated overhead costs, which, for clean
12    energy resources that are zero emission facilities, shall
13    be allocated using the methodology developed by the
14    Institute for Nuclear Power Operations; fuel expenditures;
15    nonfuel capital expenditures; spent fuel expenditures; a
16    return on working capital; the cost of operational and
17    market risks that could be avoided by ceasing operation;
18    and any other costs necessary for continued operations,
19    provided that "necessary" means, for purposes of this
20    subparagraph (C), that the costs could reasonably be
21    avoided only by ceasing operations of the clean energy
22    resource;
23        (D) the clean energy resource's annual revenue
24    projections, expressed on a per megawatt-hour basis, over
25    the next 4 delivery years, which shall include the
26    following categories, as applicable: energy; capacity;

 

 

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1    ancillary services; renewable energy credits; zero
2    emission credits; and the benefits of production tax
3    credits and investment tax credits; and
4        (E) a commitment to continue operating, for the
5    duration of the contract or contracts executed under the
6    procurement held under this subsection (d-10), the clean
7    energy resource that is the subject of the contract,
8    except in the event of force majeure or catastrophic
9    equipment failure.
10    Eligible resources must have an in-service date no later
11than the date established by the Agency for the data
12submission required by this paragraph (2).
13    The information described in subparagraph (C) of this
14paragraph (2) may be submitted on a confidential basis and
15shall be treated and maintained by the Agency, the procurement
16administrator, and the Commission as confidential and
17proprietary and exempt from disclosure under subparagraphs (a)
18and (g) of paragraph (1) of Section 7 of the Freedom of
19Information Act. The Office of Attorney General shall have
20access to, and maintain the confidentiality of, such
21information pursuant to Section 6.5 of the Attorney General
22Act.
23    No later than 14 days after a clean energy resource
24submits the information required by subparagraphs (A) through
25(E) of this paragraph (2), the Agency shall notify the
26resource of whether it is eligible to participate in the

 

 

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1procurement based on the requisite showing of financial need.
2    (3) The Agency shall solicit bids for the contracts
3described in this subsection (d-10) from clean energy
4resources authorized to participate in a procurement as
5determined under paragraph (2) of this subsection (d-10). The
6contracts procured pursuant to a procurement event shall
7reflect, and be subject to, the following terms, requirements,
8and limitations:
9        (A) Except as provided in paragraph (8) or (9) of this
10    subsection (d-10), contracts shall extend for a term of 10
11    delivery years.
12        (B) The contracts are not energy or capacity sales
13    contracts requiring physical delivery; contracts shall
14    only require delivery of carbon mitigation credits.
15        (C)(i) The price-per-megawatt-hour to be paid under a
16    contract for a given delivery year shall be equal to an
17    accepted bid price less the sum of:
18            (aa) the energy price for the PJM Interconnection,
19        LLC, Northern Illinois Hub; and
20            (bb) the Base Residual Auction capacity price for
21        the ComEd zone as determined by PJM Interconnection,
22        LLC, divided by 24 hours per day.
23        (ii) However, after the first 2 delivery years under
24    the contract, the value used in subitem (bb) of item (i) of
25    this subparagraph (C) shall be zero for any delivery year
26    in which the following 2 conditions are met during that

 

 

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1    delivery year:
2            (aa) PJM Interconnection, LLC applies the Minimum
3        Offer Price Rule to state-subsidized resources that
4        are selling environmental attributes; and
5            (bb) the State has not adopted and implemented a
6        PJM Interconnection, LLC Fixed Resource Requirement
7        Alternative.
8        (D) If the price-per-megawatt-hour calculation
9    performed under subparagraph (C) of this paragraph (3) for
10    a given delivery month results in a net positive value,
11    then the electric utility counterparty to the contract
12    shall multiply such net value by the applicable contract
13    quantity and remit the amount to the supplier. If such
14    calculation does not result in a net positive value, the
15    contract payment or payments will be determined according
16    to paragraph (8) of this subsection (d-10).
17    (3.5) Notwithstanding the provisions of this subsection
18(d-10), the Agency shall calculate a price-per-megawatt-hour
19value that reflects, and is derived from, the current
20forecasted market price of energy plus a portion of the
21societal costs and harms borne by Illinoisans as a result of
22carbon and other harmful emissions, and the Agency shall not
23accept bids for the first delivery year of contracts executed
24pursuant to paragraph (3) of this subsection (d-10) that
25exceed such value. Following the first delivery year of the
26contract, the calculation performed under this paragraph (3.5)

 

 

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1shall be subject to a 2% price escalator for each subsequent
2year of the contract term.
3    (4) Costs incurred by the electric utility pursuant to a
4contract authorized by this subsection (d-10) shall be deemed
5prudently incurred and reasonable in amount, and the electric
6utility shall be entitled to full cost recovery pursuant to a
7tariff or tariffs filed with the Commission.
8    (5) No later than 45 days after the effective date of this
9amendatory Act of the 102nd General Assembly, the Agency shall
10publish its proposed carbon mitigation procurement plan. The
11Plan shall provide that winning bids shall be selected by
12taking into consideration which resources best match
13customers' usage patterns as reflected in the utility's load
14shape and based on public interest criteria that include, but
15are not limited to, minimizing carbon dioxide emissions that
16result from electricity consumed in Illinois and minimizing
17sulfur dioxide, nitrogen oxide, and particulate matter
18emissions that adversely affect the citizens of this State.
19The selection of winning bids shall also take into account the
20incremental environmental benefits resulting from the
21procurement or procurements, such as any existing
22environmental benefits that are preserved by a procurement
23held under this subsection (d-10) and would cease to exist if
24the procurement were not held, including the preservation of
25clean energy resources. For those bidders having the same
26public interest criteria score, the relative ranking of such

 

 

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1bidders shall be determined by price. The plan shall describe
2in detail how each public interest factor shall be considered
3and weighted in the bid selection process to ensure that the
4public interest criteria are applied to the procurement.
5    Upon publishing of the carbon mitigation procurement plan,
6copies of the plan shall be posted and made publicly available
7on the Agency's website. All interested parties shall have 10
8days following the date of posting to provide comment to the
9Agency on the plan. All comments shall be posted to the
10Agency's website. Following the end of the comment period, but
11no more than 60 days later than the effective date of this
12amendatory Act of the 102nd General Assembly, the Agency shall
13revise the plan as necessary based on the comments received
14and file its carbon mitigation procurement plan with the
15Commission.
16    If the Commission determines that the plan is likely to
17result in the procurement of cost-effective carbon mitigation
18credits, then the Commission shall, after notice and hearing,
19but no later than 45 days after the Agency filed the plan,
20approve the plan or approve it with modification. For purposes
21of this subsection (d-10), "cost-effective" means carbon
22mitigation credits that are procured from clean energy
23resources at prices that are within the limits specified in
24paragraphs (3) and (3.5) of this subsection.
25    (6) As part of the Commission's review and acceptance or
26rejection of procurement results, the Commission shall, in its

 

 

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1public notice of successful bidders:
2        (A) identify how the winning bids match customers'
3    usage patterns as reflected in the utility's load shape
4    and satisfy the public interest criteria of minimizing
5    carbon dioxide emissions that result from electricity
6    consumed in Illinois and minimizing sulfur dioxide,
7    nitrogen oxide, and particulate matter emissions that
8    adversely affect the citizens of this State;
9        (B) identify how the winning bids provide incremental
10    environmental benefits resulting from the procurement,
11    including any existing environmental benefits that are
12    preserved by a procurement held under this amendatory Act
13    of the 102nd General Assembly and would have ceased to
14    exist if the procurement had not been held, such as the
15    preservation of clean energy resources;
16        (C) quantify the environmental benefit of preserving
17    the resources identified in subparagraph (B) of this
18    paragraph (6), including the following:
19            (i) the value of avoided greenhouse gas emissions
20        measured as the product of the clean energy resources'
21        output over the contract term multiplied by the U.S.
22        Environmental Protection Agency eGrid subregion carbon
23        dioxide emission rate and the U.S. Interagency Working
24        Group on Social Cost of Carbon's price in the August
25        2016 Technical Update using a 3% discount rate,
26        adjusted for inflation for each delivery year; and

 

 

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1            (ii) the costs of replacement with other clean
2        energy resources, including wind, photovoltaic, and
3        storage.
4    (7) The initial procurement described in this subsection
5(d-10) for the delivery year commencing June 1, 2022,
6including, but not limited to, the execution of all contracts
7procured, shall be completed no later than November 20, 2021.
8Based on the effective date of this amendatory Act of the 102nd
9General Assembly, the Agency and Commission may, as
10appropriate, modify the various dates and timelines under this
11subsection (d-10) to ensure compliance with the contract
12execution deadline set forth in this paragraph (7). The
13procurement and plan approval processes required by this
14subsection (d-10) shall be conducted in conjunction with the
15procurement and plan approval processes required by subsection
16(c) of this Section and Section 16-111.5 of the Public
17Utilities Act, to the extent practicable. Notwithstanding
18whether a procurement event is conducted under Section
1916-111.5 of the Public Utilities Act, the Agency shall
20immediately initiate a procurement process on the effective
21date of this amendatory Act of the 102nd General Assembly.
22    (8) To protect retail customers from retail-rate
23instability that may arise upon the initiation of carbon
24emissions regulation, if the price-per-megawatt-hour
25calculation performed under subparagraph (C) of paragraph (3)
26of this subsection (d-10) for a given delivery month results

 

 

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1in a net negative value, then the supplier counterparty to the
2contract shall multiply such net value by the applicable
3contract quantity and remit such amount to the electric
4utility counterparty. The electric utility shall reflect such
5amounts remitted by suppliers as a credit on its retail
6customer bills as soon as practicable.
7    Prior to May 31 of the ninth delivery year of a given
8contract, the Agency shall determine, for each contract, if
9retail customers have received cumulative bill credits under
10this paragraph (8) in an amount that is at least equal to the
11cumulative payments such customers have funded under
12subparagraph (D) of paragraph (3) of this subsection (d-10).
13If the amount of such bill credits is at least equal to the
14amount of such payments, then the contract will terminate
15after May 31 of the tenth delivery year, pursuant to its terms.
16If the amount of such bill credits is less than the amount of
17such payments and the contract price is expected to be less
18than the amounts subtracted under subitems (aa) and (bb) of
19item (i) of subparagraph (C) of paragraph (3) of this
20subsection (d-10) for the subsequent delivery year, then the
21contract term will automatically be extended for one delivery
22year, and the Agency shall again perform the calculations
23described in this paragraph (8) prior to May 31 of the tenth
24delivery year in order to determine whether such bill credits
25are at least equal to such costs. This one-year extension
26process shall continue until such time that the bill credits

 

 

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1are at least equal to such costs, at which time the contract
2will terminate at the end of the one-year extension period.
3Notwithstanding the provisions of this paragraph (8), in no
4event shall the total contract term exceed 15 years or, in the
5case of a zero emission facility, the duration of its
6operating license from the Nuclear Regulatory Commission.
7    (9) No later than 24 months prior to the Base Residual
8Auction for the delivery year commencing June 1, 2030, the
9Agency shall review and assess the current state of law,
10policy, and the economics of new clean energy resources to
11evaluate whether an extension of the contract term for those
12contracts procured in the first procurement event held under
13this subsection (d-10) would be the most cost-effective way to
14achieve Illinois' carbon reduction and cost reduction goals
15for subsequent delivery years. Should the Agency determine an
16extension is its preferred way to achieve the goals, the
17Agency shall propose such extension to the Commission in its
18annual procurement plan and, if approved, shall direct the
19utility to offer contract extensions.
20    (10) The provisions of this paragraph (10) apply to each
21electric utility that serves less than 3,000,000 retail
22customers but more than 100,000 retail customers in the State.
23Beginning 24 months prior to the termination date of the
24contract or contracts executed by such electric utility for
25the purchase of zero emission credits under subsection (d-5)
26of this Section, the Agency shall be permitted to timely

 

 

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1conduct an additional procurement or procurements under this
2subsection (d-10) to procure approximately 9,000,000 carbon
3mitigation credits. Such procurement or procurements for
4carbon mitigation credits shall be subject to the requirements
5of this subsection (d-10) to the extent practicable, and the
6contracts for such carbon mitigation credits shall be designed
7to commence, and require delivery beginning, immediately after
8the termination date of the contracts executed pursuant to
9subsection (d-5) of this Section. The Agency shall procure
10contracts for carbon mitigation credits pursuant to this
11paragraph (10) if it concludes, after review and assessment of
12the current state of law, policy, and the economics of new
13clean energy resources, that such procurement would be a
14cost-effective way to achieve Illinois' carbon reduction and
15cost reduction goals for subsequent delivery years. For
16purposes of this paragraph (10), and notwithstanding anything
17to the contrary, "carbon mitigation credit" means a tradable
18credit that represents the carbon emission reduction
19attributes of one megawatt-hour of energy produced from a
20renewable energy resource interconnected to Midcontinent
21Independent System Operator, Inc. or a zero emission facility
22interconnected to Midcontinent Independent System Operator,
23Inc.
24    (d-15)(1) The General Assembly finds and declares that all
25citizens of the State should benefit from the implementation
26and achievement of the State's clean energy policies, goals,

 

 

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1and procurements described in this amendatory Act of the 102nd
2General Assembly. The General Assembly recognizes that
3although the transition to a clean energy future will benefit
4all Illinoisans, the transition has required, and will
5continue to require, investment from Illinoisans, which is
6typically made through the payment of various charges included
7on their electric utility bills. The General Assembly further
8recognizes that this investment has increased over the past
9decade in step with the State's escalating clean energy
10targets, which are reflected in Illinois' energy efficiency
11portfolio standard, renewable energy portfolio standard, zero
12emission portfolio standard, and any other procurements of
13clean energy attributes conducted by the Agency on behalf of
14electric utilities.
15    Because monthly utility bills often comprise a higher
16percentage of low-income and moderate-income households'
17monthly budgets compared to other households, the General
18Assembly further finds that the increased costs associated
19with the transition to clean energy can be particularly
20difficult for these households to absorb. To ensure that
21Illinois' transition to a clean energy future does not
22adversely impact the State's low-income and moderate-income
23citizens in a disproportionate manner, the General Assembly
24finds and declares that electric utilities should be permitted
25to implement measures designed to address that inequity.
26    (2) Each electric utility that serves more than 500,000

 

 

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1retail customers in the State shall be permitted, at the
2utility's election, to prepare and administer a clean energy
3equity plan that conforms to the requirements of this
4paragraph (2). Each plan shall be implemented on a calendar
5year basis, and shall be designed to use 95% of the funds
6projected to be deposited into the account established
7pursuant to paragraph (5) of this subsection (d-15) and
8available during the applicable year to provide the following
9assistance:
10        (A) 75% of the funds shall be used to provide
11    assistance to residential retail customers as follows:
12            (i) The funds shall first be used by the electric
13        utility to assist low-income and moderate-income
14        retail customers through the Supplemental Arrearage
15        Reduction Program authorized under paragraph (5.5) of
16        subsection (c) of Section 18 of the Energy Assistance
17        Act. Notwithstanding the provisions of such paragraph,
18        the electric utility shall be permitted to modify and
19        expand the eligibility and participation terms set
20        forth in such paragraph for the purposes of using the
21        additional funding available pursuant to this
22        paragraph (2) and maximizing the Program's reach and
23        effectiveness, including, but not limited to, an
24        expansion of assistance that would increase the number
25        of low-income and moderate-income families receiving
26        bill credits that reduce or eliminate their utility

 

 

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1        bill arrearages. These credits will provide a path for
2        the utility's most vulnerable customers to become
3        current on their utility bills, which also benefits
4        all of the utility's customers through the reduction
5        of uncollectible expense associated with unpaid
6        arrearages.
7            (ii) If a portion of the funds allocated to item
8        (i) of this subparagraph (A) remains unspent after the
9        close of a calendar year, then the utility shall remit
10        such portion to the Department of Revenue for deposit
11        in the Supplemental Low-Income Energy Assistance Fund,
12        which shall be used to provide additional funding to
13        the utility's Percentage of Income Payment Plan
14        implemented pursuant to Section 18 of the Energy
15        Assistance Act.
16        (B) 25% of the funds shall be used for small
17    commercial retail customers and retail customers that are
18    not-for-profit organizations, as follows:
19            (i) The utility may establish general assistance
20        programs, including, but not limited to, arrearage
21        reduction programs, and the details of the program or
22        programs shall be set forth in one or more tariffs
23        filed with the Commission.
24            (ii) If a portion of the funds allocated to item
25        (i) of this subparagraph (B) remains unspent after the
26        close of a calendar year, then the utility shall use

 

 

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1        such portion to increase the funding under item (i) of
2        subparagraph (A) of this paragraph (2).
3    For purposes of this subsection (d-15), "small commercial
4retail customer" means a nonresidential retail customer of an
5electric utility that has a maximum demand of no more than 100
6kilowatts; however, if the utility projects, by August 31 of a
7given year, that the annual funding available under this
8subparagraph (B) will not be fully used, then the utility may
9increase such maximum demand limitation to no more than 400
10kilowatts.
11    The utility may coordinate with Local Administrative
12Agencies, as defined in Section 18 of the Energy Assistance
13Act, to notify and enroll customers in the programs and
14funding described in this paragraph (2).
15    (3) An electric utility that elects to develop and
16implement the plan described in paragraph (2) of this
17subsection (d-15) shall be permitted to establish the amount
18of funding to be available under the plan during a given year,
19provided that such amount does not exceed $30,000,000 per year
20for a utility that serves more than 3,000,000 retail customers
21in the State and $15,000,000 per year for a utility that serves
22less than 3,000,000 retail customers but more than 500,000
23retail customers in the State.
24    (4)(A) Nothing in this Act, the Public Utilities Act, or
25any other law of this State shall preclude or prevent an
26electric utility that is subject to the procurement required

 

 

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1by subsection (d-10) of this Section from negotiating or
2requiring terms in new contracts executed with winning bidders
3under which those winning bidder counterparties fund the plans
4described in paragraph (2) of this subsection (d-15) in an
5amount up to $0.32 per megawatt-hour procured from clean
6energy resources; however, the generation resource that is the
7subject of the contract must have a nameplate capacity that is
8greater than 2,000 kilowatts.
9    (B) If an electric utility elects to include the contract
10terms described in subparagraph (A) of this paragraph (4),
11then the contracts shall specify that the money owed by
12winning bidder counterparties pursuant to such terms shall be
13allocated, on an annual basis, to those electric utilities
14that elect to administer a clean energy equity plan pursuant
15to paragraph (2) of this subsection (d-15). The electric
16utility counterparty to the contracts shall also specify in
17such contracts an equitable allocation methodology to be used
18for annually apportioning such money to those electric
19utilities administering plans pursuant to such paragraph (2)
20based on the number of retail customers served by each utility
21that elects to administer a clean energy equity plan pursuant
22to such paragraph (2).
23    (C) If an electric utility elects to include the contract
24terms described in subparagraph (A) of this paragraph (4),
25then the contracts shall also address the mechanism or
26mechanisms by which the money allocated to funding the plans

 

 

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1will be transferred or deposited into the account or accounts
2of each utility established pursuant to paragraph (5) of this
3subsection (d-15). For an electric utility that is the
4counterparty to a contract, this mechanism may include, but is
5not limited to, the utility depositing the plan funding
6amounts due, and allocated to it, under the contract and
7reducing, by the same amount, the payments otherwise due to
8the winning bidder under the contract. The mechanism selected
9for a given contract, including, but not limited to, any
10transfers, deposits, or reductions in payments thereunder,
11shall not reduce, or otherwise impact, the total contract cost
12to be recovered from retail customers.
13    (D) It shall not be imprudent or unreasonable for an
14electric utility to include the plan funding contract terms
15authorized by subparagraph (A) of this paragraph (4) in
16contracts executed pursuant to subsection (d-10) of this
17Section, and such inclusion shall not be a basis for the
18Commission to disallow the recovery of any or all of the
19contract cost from retail customers, even though such a
20contract term may result in a higher cost than the electric
21utility or customers otherwise would pay.
22    Notwithstanding the provisions of this paragraph (4),
23nothing in this Section prohibits the utility from seeking
24Commission approval to also recover amounts that exceed the
25values set forth in subparagraph (A) of this paragraph (4).
26    (E) If an electric utility elects to require the contract

 

 

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1term or terms authorized by this paragraph (4), it shall
2notify the Agency to include the term or terms in the
3applicable request for proposals. The electric utility and
4Agency shall coordinate expeditiously to implement the
5utility's elections, and the Agency shall not impede such
6implementation.
7    (5) Each electric utility shall deposit into a separate
8interest bearing account of a financial institution the
9amounts allocated or received under this subsection (d-15) for
10the purpose of funding and administering the plan described in
11paragraph (2) of this subsection (d-15). The electric utility
12shall be reimbursed from the account for the administrative
13costs that it incurs to administer and manage the account. Any
14taxes due on the funds in the account, or the interest earned
15on it, will be paid from the account. The money in this account
16shall not be subject to appropriation.
17    (6) No later than 90 days after the close of each year
18during which a plan authorized by paragraph (2) of this
19subsection (d-15) was in effect and implemented, each electric
20utility subject to the requirements of this subsection (d-15)
21shall submit a report to the Commission identifying the
22following for the immediately preceding year: (i) the total
23funds available to fund the plan, including the amounts
24deposited into the account established under paragraph (5) of
25this subsection (d-15); (ii) the interest earned on the
26account; (iii) the administrative fees and taxes paid from the

 

 

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1account; (iv) descriptions of the programs offered, and
2amounts disbursed, under paragraph (2) of this subsection
3(d-15); and (v) the planned disposition of any funds not fully
4disbursed during the year and, if applicable, any prior years.
5    (7) If any provision within this subsection (d-15) is
6found by a court of competent jurisdiction to be invalid,
7illegal or unenforceable, the remaining provisions of this
8amendatory Act of the 102nd General Assembly shall not in any
9way be affected or impaired.
10    (d-16)(1) The General Assembly finds and declares that it
11is critical that the State provide support for the transition
12of Illinois' communities and workers impacted or displaced by
13the implementation and achievement of clean energy policies,
14goals, and procurements, including those described in this
15amendatory Act of the 102nd General Assembly. While this
16transition to a clean energy future is vital to protecting the
17health, safety, and economic security of all Illinoisans, the
18General Assembly recognizes that it is necessary to implement
19a variety of measures to attract new businesses to these
20communities, offer training for impacted workers, and provide
21economic support for impacted communities and workers during
22this transition period. These new measures are set forth in
23the Energy Community Reinvestment Act and Empowerment Zone Tax
24Credit Act of this amendatory Act of the 102nd General
25Assembly, and the General Assembly finds and declares that
26electric utilities should be permitted to implement the

 

 

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1provisions of this subsection (d-16) to support these efforts.
2    (2)(A) Nothing in this Act, the Public Utilities Act, or
3any other law of this State shall preclude or prevent an
4electric utility that is subject to the procurements required
5by subsection (c) of this Section from negotiating or
6requiring terms in new contracts executed with winning bidders
7under which those winning bidder counterparties fund the
8Energy Community Reinvestment Fund in amounts to be determined
9in coordination with the Agency and Department of Commerce and
10Economic Opportunity; however, those renewable energy
11resources that are the subject of the contracts, other than
12community renewable generation projects, must have a nameplate
13capacity that is greater than 2,000 kilowatts, and the
14provisions of this subsection (d-16) shall not apply to
15contracts for renewable energy credits that are procured under
16subparagraph (K-10) of paragraph (1) of subsection (c) of this
17Section.
18    (B) If an electric utility elects to include the contract
19terms described in subparagraph (A) of this paragraph (2),
20then the contracts shall also address the mechanism or
21mechanisms by which the money allocated to funding the Energy
22Community Reinvestment Fund will be transferred or deposited
23into the Fund. This mechanism may include, but is not limited
24to, the utility depositing the funding amounts due under the
25contract and reducing, by the same amount, the payments
26otherwise due to the winning bidder under the contract. The

 

 

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1mechanism selected for a given contract, including, but not
2limited to, any transfers, deposits, or reductions in payments
3thereunder, shall not reduce, or otherwise impact, the total
4contract cost to be recovered from retail customers.
5    (C) It shall not be imprudent or unreasonable for an
6electric utility to include the Energy Community Reinvestment
7Fund funding contract terms authorized by subparagraph (A) of
8this paragraph (2) in contracts executed pursuant to
9subsection (c) of this Section, and such inclusion shall not
10be a basis for the Commission to disallow the recovery of any
11or all of the contract cost from retail customers, even though
12such a contract term may result in a higher cost than the
13electric utility or customers otherwise would pay.
14    Notwithstanding the provisions of this paragraph (2),
15nothing in this Section prohibits the utility from seeking
16Commission approval to also recover amounts that exceed the
17funding amounts established pursuant to subparagraph (A) of
18this paragraph (2).
19    (D) If an electric utility elects to require the contract
20term or terms authorized by this paragraph (2), it shall
21notify the Agency to include the term or terms in the
22applicable request for proposals. The electric utility and
23Agency shall coordinate expeditiously to implement the
24utility's elections, and the Agency shall not impede such
25implementation.
26    (3) If any provision within this subsection (d-16) is

 

 

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1found by a court of competent jurisdiction to be invalid,
2illegal or unenforceable, the remaining provisions of this
3amendatory Act of the 102nd General Assembly shall not in any
4way be affected or impaired.
5    (d-20)(1) Definitions. For purposes of this subsection
6(d-20):
7    "Construction" means any constructing, altering,
8reconstructing, repairing, rehabilitating, refinishing,
9refurbishing, remodeling, remediating, renovating, custom
10fabricating, maintaining, securing, landscaping, improving,
11drilling, testing, moving, wrecking, painting, decorating,
12demolishing, and adding to or subtracting from any building,
13structure, highway, roadway, street, bridge, alley, sewer,
14ditch, water works, parking facility, railroad, excavation or
15other structure, project, development, other real improvement,
16or any part thereof, whether or not the performance of the work
17herein described involves the addition to, or fabrication
18into, any structure, project, development, real property or
19improvement herein described.
20    "Construction Employee" means persons performing
21construction.
22    "Subsidized facility" means a planned or existing facility
23that is selected to receive a subsidy through the Agency
24programs and procurements under Section 1-56 of this Act,
25subsection (c) of this Section, or subsection (d-10) of this
26Section.

 

 

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1    "Subsidized supplier" means a supplier whose planned or
2existing facility is selected to receive a subsidy through the
3Agency programs and procurements under Section 1-56 of this
4Act, subsection (c) of this Section, or subsection (d-10) of
5this Section.
6    (2) All construction performed on a subsidized facility
7shall be subject to the requirements for public works in
8accordance with the Illinois Prevailing Wage Act and as set
9forth in this subsection.
10    (3) Each subsidized supplier shall require that all
11construction performed by the supplier, its contractors, or
12its subcontractors relating to a subsidized facility is
13performed by construction employees receiving an amount for
14that work equal to or greater than the general prevailing rate
15of hourly wages and benefits, as that term is defined in
16Section 3 of the Illinois Prevailing Wage Act.
17    Each subsidized supplier shall, and shall require its
18contractors or subcontractors that perform construction at any
19subsidized facility to:
20        (A) make and keep, for a period of not less than 5
21    years from the date of the last payment on a contract or
22    subcontract for construction, records of all construction
23    employees employed by them for work on or within the
24    subsidized facility; the records shall include each
25    employee's name, address, race, gender, telephone number
26    when available, if applicable years of residency in

 

 

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1    Illinois, classification or classifications of labor, the
2    rate of hourly wages paid in each pay period for work at
3    the subsidized facility, the number of hours worked each
4    day, and the starting and ending times of work each day, at
5    the subsidized facility; and
6        (B) no later than the fifteenth day of each calendar
7    month file a certified payroll for work at the subsidized
8    facility for the immediately preceding month with the
9    Department of Labor and provide an informational copy to
10    the Agency.
11    (4) Each subsidized supplier shall require any contractors
12and subcontractors performing construction at a subsidized
13facility to comply with the responsible bidder requirements of
14Section 30-22 of the Illinois Procurement Code.
15    (5) Except for those construction projects related to
16facilities described in item (i) of subparagraph (K) of
17paragraph (1) of subsection (c) of this Section, a subsidized
18supplier shall require any contractors and subcontractors
19performing a construction project at a subsidized facility to
20enter into a project labor agreement with the building and
21construction trades council or multiple labor organizations
22with geographic jurisdiction over the location of the project.
23    (6)(A) Each subsidized supplier shall participate in an
24apprenticeship program, registered with and recognized by the
25United States Department of Labor, related to all construction
26at a subsidized facility. Each subsidized supplier shall

 

 

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1additionally require its contractors or subcontractors that
2perform construction at a subsidized facility to participate
3in such an apprenticeship program related to all construction
4at that facility.
5    (B) The apprenticeship program shall have a goal that
6apprentices will perform the lesser of 10% of the total labor
7hours actually worked in each prevailing wage classification
8or 10% of the estimated labor hours in each prevailing wage
9classification.
10    (C) The Agency may reduce or waive the goals set forth in
11item (B) of paragraph (5) of subsection (d-20) of this Section
12before or during the term of the contract under Section 1-56 of
13this Act or subsections (c) or (d-10) of this Section if the
14Agency, after public hearing, finds that insufficient
15apprentices are available or the reasonable and necessary
16requirements of the contract or subcontract do not allow the
17goal to be met.
18    (D) Each supplier shall submit, and shall require
19contractors and subcontractors to submit, a certification to
20the Department of Labor that such entity has either met the
21apprentice labor hours goal set forth in item (B) of paragraph
22(5) of subsection (d-20) of this Section or received a
23reduction or waiver pursuant to item (C) of paragraph (5) of
24subsection (d-20) of this Section.
25    (7) Contractors and subcontractors of subsidized suppliers
26are subject to the rules and regulations established by the

 

 

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1Department of Commerce and Economic Opportunity in accordance
2with Section 20-15 of the Illinois Works Jobs Program Act for
3construction at subsidized facilities.
4    (8)(A) Workforce Diversity. The Agency shall require each
5subsidized supplier to report monthly on the diversity of its
6workforce within each of its subsidized facilities. The report
7shall also present the diversity of the community in which a
8subsidized facility is located and shall outline the efforts
9the supplier is taking to achieve a workforce that reflects
10the diversity of the community for each such facility. If a
11supplier fails to meet or maintain compliance with the
12reporting requirements of this subparagraph (A) and
13subparagraph (A) of paragraph (3) of this subsection (d-20)
14the supplier is not eligible to receive payment during the
15period of noncompliance. The Agency shall notify the
16contracting utility, at such time, that the supplier is not
17eligible to receive payment. Contracts entered into pursuant
18to Section 1-56 of this Act, subsection (c) of this Section or
19subsection (d-10) of this Section shall reflect that payments
20shall be suspended upon any noncompliance notice from the
21Agency until the Agency notifies the utility that the period
22of noncompliance has ended.
23    (B) Subsidized suppliers shall strive with respect to any
24subsidized facility to achieve a workforce at that facility
25that reflects the diversity of the community in which such
26facility is located. In each reporting period, the supplier

 

 

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1shall outline the efforts it is taking to achieve for each such
2facility a workforce that reflects the diversity of the
3community.
4    (9) Where not otherwise prohibited by applicable law, each
5subsidized supplier shall, with respect to such employees
6assigned to work on the premises of a subsidized facility who
7are not otherwise members of an existing bargaining unit
8cognizable under the National Labor Relations Act, agree to
9labor neutrality and card check procedures with any union that
10seeks to represent such employees. The supplier shall also
11only use on-site contractors or subcontractors who agree to be
12bound by similar provisions, if requested by any union that
13seeks to represent the on-site contractor or subcontractor's
14employees who are assigned to work on the premises of a
15subsidized facility.
16    (10) The requirements of this subsection (d-20) of this
17Section shall be construed to avoid preemption under federal
18law. The primary purpose of Sections 1-56 of this Act,
19subsection (c) of this Section, and subsection (d-10) of this
20Section is to advance the State's clean energy goals.
21Accordingly, the invalidity of any provision in this
22subsection (d-20) shall not affect the validity of the
23remaining provisions in this subsection (d-20), nor the
24validity of Sections 1-56 of this Act, subsection (c) of this
25Section, or subsection (d-10) of this Section.
26    (d-25) To ensure that the State's policy goals set forth

 

 

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1in subsection (d-9) of this Section are achieved, the
2Governor, on behalf of the State, shall be authorized to join,
3and execute agreements with, one or more regional, national or
4international market-based programs designed to reduce carbon
5emissions.
6    (d-30) As set forth in subsection (d-9) of this Section,
7this amendatory Act of the 102nd General Assembly is designed
8to mitigate increases in carbon emissions and preserve
9existing clean energy resources during this current period of
10uncertainty regarding a future transition to a regional or
11national carbon pricing regime. To ensure that the State's
12implementation of the policies articulated in such subsection
13(d-9) remain on track during this period, the Agency, in
14consultation with the Commission and Illinois Environmental
15Protection Agency, shall prepare a study analyzing additional
16least-cost means of achieving the State's carbon reduction
17goals that are incremental to those required by this
18amendatory Act of the 102nd General Assembly.
19    (e) The draft procurement plans are subject to public
20comment, as required by Section 16-111.5 of the Public
21Utilities Act.
22    (f) The Agency shall submit the final procurement plan to
23the Commission. The Agency shall revise a procurement plan if
24the Commission determines that it does not meet the standards
25set forth in Section 16-111.5 of the Public Utilities Act.
26    (g) The Agency shall assess fees to each affected utility

 

 

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1to recover the costs incurred in preparation of the annual
2procurement plan for the utility.
3    (h) The Agency shall assess fees to each bidder to recover
4the costs incurred in connection with a competitive
5procurement process.
6    (i) A renewable energy credit, carbon emission credit, or
7zero emission credit, or carbon mitigation credit can only be
8used once to comply with a single portfolio or other standard
9as set forth in subsection (c), subsection (d), or subsection
10(d-5), or subsection (d-10) of this Section, respectively. A
11renewable energy credit, carbon emission credit, or zero
12emission credit, or carbon mitigation credit cannot be used to
13satisfy the requirements of more than one standard. If more
14than one type of credit is issued for the same megawatt hour of
15energy, only one credit can be used to satisfy the
16requirements of a single standard. After such use, the credit
17must be retired together with any other credits issued for the
18same megawatt hour of energy.
19    (j) Each electric utility subject to the procurement
20requirements set forth in subsection (c), (d-5), or (d-10) of
21this Section shall perform an analysis, updated annually for
22each delivery year, of the extent to which the renewable
23energy credits, zero emission credits, and carbon mitigation
24credits it has purchased under contracts procured by the
25Agency pursuant to such subsection or subsections, as
26applicable, are generated during those times that correspond

 

 

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1to the pattern of retail electric consumption in the utility's
2service territory. Each electric utility's analysis shall also
3identify the characteristics of additional renewable energy
4resources whose generation of renewable energy credits would
5best match, and increase the level of correlation to, the
6pattern of retail electric consumption in the utility's
7service territory. The Agency shall identify the date by which
8each electric utility must submit such analysis to the Agency
9each year.
10    Based on the analyses submitted by electric utilities
11pursuant to this subsection (j), the Agency's planning and
12procurement processes conducted for those procurements
13authorized and held under this Section shall include an
14analysis, updated annually for each delivery year, that
15identifies, as applicable, the renewable energy resources,
16zero emission facilities, and clean energy resources that are
17capable of producing clean energy during those times that
18correspond to the pattern of retail electric consumption.
19    (k) Capacity procurement.
20        (1) Beginning no earlier than the delivery year
21    commencing June 1, 2023, and insofar as permitted under
22    federal law, this subsection (k) grants the Agency
23    authority to procure capacity for an electric utility that
24    serves more than 3,000,000 retail customers in the State,
25    is a member of PJM Interconnection, LLC, and elects to use
26    the Fixed Resource Requirement Alternative as provided for

 

 

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1    in the Open Access Transmission Tariff, Reliability
2    Assurance Agreement, and manuals of PJM Interconnection,
3    LLC or its successors, provided that such election is
4    approved by the Commission pursuant to paragraph (6) of
5    subsection (b) of Section 16-111.5 of the Public Utilities
6    Act. Upon the Commission's approval of such election, the
7    Agency shall develop a procurement plan consistent with
8    the requirements of this subsection (k) and paragraph (7)
9    of such subsection (b) for the procurement of capacity in
10    amounts necessary to ensure the electric utility's
11    resource adequacy pursuant to PJM Interconnection LLC's
12    federally mandated requirements. The Agency shall, for
13    each such utility, conduct Capacity Procurement auctions
14    as necessary to meet the electric utility's resource
15    obligations for all of its retail customers. Such auctions
16    shall also be designed to achieve the objectives set forth
17    in this subsection (k) for the duration of the electric
18    utility's election of the Fixed Resource Requirement
19    Alternative.
20        In this subsection (k):
21        "Fixed Resource Requirement", "Fixed Resource
22    Requirement Alternative", "Fixed Resource Requirement
23    Service Area" (or "FRR Service Area"), "Load Serving
24    Entities", and "Open Access Transmission Tariff" shall
25    have the meanings as provided for in the Open Access
26    Transmission Tariff, Reliability Assurance Agreement, and

 

 

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1    manuals of PJM Interconnection, LLC, or its successor, as
2    that Agreement may be updated from time to time.
3        "Obligation Peak Load" shall have the meaning set
4    forth in PJM Manual 18: PJM Capacity Market, of PJM
5    Interconnection, LLC, or its successor, as such Manual may
6    be updated from time to time.
7        (2) The draft procurement plan is subject to public
8    comment, as required by Section 16-111.5 of the Public
9    Utilities Act.
10        (3) The Agency shall design the Capacity Procurement
11    Plan to achieve the following objectives:
12            (A) Through one or more auctions that procure
13        capacity for one or more years, meet the electric
14        utility's resource obligation under the Fixed Resource
15        Requirement Alternative as provided for in the Open
16        Access Transmission Tariff, Reliability Assurance
17        Agreement, and manuals of PJM Interconnection, LLC or
18        its successors for all of its retail customers while
19        maximizing benefits that meet the State's public
20        interest in the health, safety and welfare of its
21        residents, including, but not limited to:
22        significantly reduced emissions in the State from
23        power generation sources; consumer savings; and those
24        interests described in subparagraph (I) of paragraph
25        (1) of subsection (c) of Section 1-75 of the Illinois
26        Power Agency Act.

 

 

10200SB1100sam001- 230 -LRB102 04924 SPS 24488 a

1            (B) At least 80% of the capacity procured should
2        be carbon emission-free by 2030 and 100% of the
3        capacity procured should be carbon emission-free by
4        2035 but the Agency should always work toward the goal
5        of including as much carbon emission-free capacity as
6        it reasonably can procure.
7        (4) As part of its Capacity Procurement Plans, the
8    Agency may implement an auction for an optional bundled
9    product which includes payments to resources that provide
10    both capacity and renewable energy credits. Renewable
11    energy resources are eligible to participate in auctions
12    conducted to implement Capacity Procurement Plans only if
13    they are eligible to participate in auctions pursuant to
14    subparagraph (J) of paragraph (1) of subsection (c) of
15    Section 1-75 of the Illinois Power Agency Act.
16        (4.5) Notwithstanding the provisions of subsection (i)
17    of this Section, a generating facility that has executed a
18    contract to supply renewable energy credits, zero emission
19    credits, or carbon mitigation credits pursuant to a
20    procurement conducted under this Section shall not be
21    precluded from participating in a capacity auction
22    conducted by the Agency under this subsection (k) and
23    paragraph (6) of subsection (b) of Section 16-111.5 of the
24    Public Utilities Act. To ensure that zero emission
25    facilities and clean energy resources are not paid twice
26    for the environmental attributes reflected in any zero

 

 

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1    emission credits and carbon mitigation credits supplied
2    under contracts previously executed pursuant to subsection
3    (d-5) and (d-10) of this Section, respectively, the
4    capacity price paid to such facilities and resources under
5    contracts executed pursuant to this subsection (k) and
6    such paragraph (6) shall, for the applicable delivery
7    year, be the Base Residual Auction capacity price
8    calculated under subitem (bb) of item (i) of subparagraph
9    (C) of paragraph (3) of such subsection (d-10), divided by
10    24 hours per day.
11        (5) The Capacity Procurement Plans shall address load
12    forecasting, billing, and settlement as follows:
13            (A) The Plan shall identify whether PJM
14        Interconnection, LLC or the electric utility for which
15        the capacity is being procured shall serve as the
16        administrator for billing and settlement purposes. PJM
17        Interconnection, LLC, or its successor, shall be given
18        the right of first refusal to serve as the
19        administrator for billing and settlement purposes. The
20        administrator for billing and settlement purposes
21        shall perform its role in a competitively neutral
22        manner.
23            (B) Each Load Serving Entity shall provide to the
24        electric utility or the administrator for billing and
25        settlement purposes, as applicable, information needed
26        by the electric utility or administrator to perform

 

 

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1        its responsibilities. This information shall be
2        provided, and shall be maintained by the electric
3        utility or the administrator, as applicable, on a
4        confidential basis, including maintaining the
5        information so that it cannot be accessed by personnel
6        of the electric utility or administrator responsible
7        for wholesale or retail power marketing or sales.
8            (C) The administrator for billing and settlement
9        purposes shall apportion the total procured capacity
10        among each of the Load Serving Entities. For each Load
11        Serving Entity, this apportionment shall be calculated
12        as the ratio of the Load Serving Entity's daily
13        Obligation Peak Load in the applicable FRR Service
14        Area divided by the sum of the daily Obligation Peak
15        Loads for all Load Serving Entities in the applicable
16        FRR Service Area, after reducing each Load Serving
17        Entity's daily Obligation Peak Load in the applicable
18        FRR Service Area by the quantity of its preexisting
19        capacity commitments. The administrator for billing
20        and settlement purposes shall bill each Load Serving
21        Entity daily for its apportioned share of the
22        purchased capacity, using the weighted average of the
23        capacity prices specified in the capacity contracts.
24        The Capacity Procurement Plan shall provide for the
25        transfer of revenues collected from each Load Serving
26        Entity to the electric utility that is the

 

 

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1        counterparty to the capacity contract entered into as
2        a result of the procurement. Nothing in this
3        subsection (k) shall impair the ability of the Load
4        Serving Entity to allocate, bill, and collect the
5        capacity costs billed to it under this subparagraph
6        (C) in the manner of its own choosing from the retail
7        customers it serves.
8            (D) If a Load Serving Entity elects to self-supply
9        its capacity obligation for its customers pursuant to
10        Schedule 8.1.D(9) of the PJM Reliability Assurance
11        Agreement or its successor, the capacity plan that the
12        Load Serving Entity is required to provide to the
13        electric utility shall include capacity that meets the
14        PJM Minimum Internal Resource Requirement and such
15        other Capacity Procurement Plan requirements that are
16        not inconsistent with the Minimum Internal Resource
17        Requirement, including, but not limited to, a
18        requirement that all, or a specific portion, of the
19        capacity be carbon-free capacity, as specified in the
20        Capacity Procurement Plan.
21        (6) The provisions of this subsection (k) are not
22    intended to conflict with federal rules, regulations, or
23    laws. If any part of this subsection (k) conflicts with
24    federal rules, regulations, or laws, the federal
25    provisions shall control to the extent of the conflict.
26(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;

 

 

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1101-113, eff. 1-1-20.)
 
2    (20 ILCS 3855/1-76 new)
3    Sec. 1-76. Coal Plant Retirement Advisory Committee.
4Within 60 days after the effective date of this amendatory Act
5of the 102nd General Assembly, the Coal Plant Retirement
6Advisory Committee shall be established, which shall consist
7of 11 total members, with each member possessing either
8technical, business or workforce training expertise related to
9the displacement of employees of coal-fired electric
10generating facilities that are closing. Of the 11 members, 5
11shall be appointed by the Governor, one shall be appointed by
12the Speaker of the House, one shall be appointed by the
13Minority Leader of the House, one shall be appointed by the
14President of the Senate, one shall be appointed by the
15Minority Leader of the Senate, one shall be appointed by the
16Director of the Illinois Department of Labor, and one shall be
17appointed by the Chair of the Illinois Community College
18Board. Of the Governor's 5 appointments, at least one must
19represent a local labor organization that represents employees
20impacted by a coal-fired electric generating facility closure,
21at least one must represent a national labor organization, at
22least one must represent a local chamber of commerce impacted
23by a coal-fired electric generating facility closure, and at
24least one must represent a municipality that is impacted by a
25coal-fired electric generating facility closure.

 

 

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1    The Governor shall designate one of the members of the
2Committee to serve as chairman, and that person shall serve as
3the chairman at the pleasure of the Governor. The members
4shall not be compensated for serving on the Coal Plant
5Retirement Advisory Committee. The Committee shall have the
6following duties:
7        (1) Investigate how the closure of coal-fired electric
8    generating facilities in the State will impact the
9    employees of those facilities, including, but not limited
10    to, the following:
11            (A) the potential for such employees to secure
12        future employment at a level of compensation that is
13        commensurate with, or higher than, the compensation
14        paid by the closing coal-fired electric generating
15        facilities; such future employment may include, but is
16        not limited to, the clean energy industry;
17            (B) the need for such employees to obtain
18        additional training in order to secure the future
19        employment and compensation levels described in
20        subparagraph (A) of this paragraph (1) and the cost,
21        availability, accessibility and duration of such
22        additional training;
23            (C) the potential that the future employment and
24        compensation levels described in subparagraph (A) of
25        this paragraph (1) could be obtained in the same
26        communities where the employees live at the time of

 

 

10200SB1100sam001- 236 -LRB102 04924 SPS 24488 a

1        the plant closure;
2            (D) the impact on the local community of the loss
3        of the tax revenues from the coal-fired electric
4        generating facility and the men and women employed
5        there; and
6            (E) the impact on the local community if the
7        employees and their families are required to leave to
8        find suitable alternative employment at acceptable
9        compensation levels.
10        (2) Submit a report to the Governor, Speaker of the
11    House, Minority Leader of the House, President of the
12    Senate, and Minority Leader of the Senate that sets forth
13    the Committee's findings regarding the matters
14    investigated pursuant to paragraph (1) of this Section.
 
15    Section 90-15. The State Finance Act is amended by adding
16Section 5.935 as follows:
 
17    (30 ILCS 105/5.935 new)
18    Sec. 5.935. The Energy Community Reinvestment Fund.
 
19    Section 90-20. The Illinois Works Jobs Program Act is
20amended by changing Sections 20-10 and 20-15 as follows:
 
21    (30 ILCS 559/20-10)
22    Sec. 20-10. Definitions.

 

 

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1    "Apprentice" means a participant in an apprenticeship
2program approved by and registered with the United States
3Department of Labor's Bureau of Apprenticeship and Training.
4    "Apprenticeship program" means an apprenticeship and
5training program approved by and registered with the United
6States Department of Labor's Bureau of Apprenticeship and
7Training.
8    "Bid credit" means a virtual dollar for a contractor or
9subcontractor to use toward future bids on contracts with the
10State for public works projects.
11    "Community-based organization" means a nonprofit
12organization, including an accredited public college or
13university, selected by the Department to participate in the
14Illinois Works Preapprenticeship Program. To qualify as a
15"community-based organization", the organization must
16demonstrate the following:
17        (1) the ability to effectively serve diverse and
18    underrepresented populations, including by providing
19    employment services to such populations;
20        (2) knowledge of the construction and building trades
21    or, as applicable, trades supporting public utility
22    projects and operations;
23        (3) the ability to recruit, prescreen, and provide
24    preapprenticeship training to prepare workers for
25    employment in the construction and building trades or, as
26    applicable, trades supporting public utility projects and

 

 

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1    operations; and
2        (4) a plan to provide the following:
3            (A) preparatory classes;
4            (B) workplace readiness skills, such as resume
5        preparation and interviewing techniques;
6            (C) strategies for overcoming barriers to entry
7        and completion of an apprenticeship program; and
8            (D) any prerequisites for acceptance into an
9        apprenticeship program.
10    "Contractor" means a person, corporation, partnership,
11limited liability company, or joint venture entering into a
12contract to construct a public work.
13    "Department" means the Department of Commerce and Economic
14Opportunity.
15    "Labor hours" means the total hours for workers who are
16receiving an hourly wage and who are directly employed for the
17public works project. "Labor hours" includes hours performed
18by workers employed by the contractor and subcontractors on
19the public works project. "Labor hours" does not include hours
20worked by the forepersons, superintendents, owners, and
21workers who are not subject to prevailing wage requirements.
22    "Minorities" means minority persons as defined in the
23Business Enterprise for Minorities, Women, and Persons with
24Disabilities Act.
25    "Public utility" has the meaning set forth in Section
263-105 of the Public Utilities Act.

 

 

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1    "Public works" means all projects, contracted or funded by
2the State or any agency of the State, in whole or in part, from
3appropriated capital funds, that constitute public works under
4the Prevailing Wage Act.
5    "Subcontractor" means a person, corporation, partnership,
6limited liability company, or joint venture that has
7contracted with the contractor to perform all or part of the
8work to construct a public work by a contractor.
9    "Underrepresented populations" means populations
10identified by the Department that historically have had
11barriers to entry or advancement in the workforce.
12"Underrepresented populations" includes, but is not limited
13to, minorities, women, and veterans.
14(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)
 
15    (30 ILCS 559/20-15)
16    Sec. 20-15. Illinois Works Preapprenticeship Program;
17Illinois Works Bid Credit Program.
18    (a) The Illinois Works Preapprenticeship Program is
19established and shall be administered by the Department. The
20goal of the Illinois Works Preapprenticeship Program is to
21create a network of community-based organizations throughout
22the State that will recruit, prescreen, and provide
23preapprenticeship skills training, for which participants may
24attend free of charge and receive a stipend, to create a
25qualified, diverse pipeline of workers who are prepared for

 

 

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1careers in the construction and building trades and, as
2provided in subsection (f) of this Section, trades supporting
3public utility projects and operations. Upon completion of the
4Illinois Works Preapprenticeship Program, the candidates will
5be skilled and work-ready.
6    (b) There is created the Illinois Works Fund, a special
7fund in the State treasury. The Illinois Works Fund shall be
8administered by the Department. The Illinois Works Fund shall
9be used to provide funding for community-based organizations
10throughout the State. In addition to any other transfers or
11deposits that may be provided for by law, on and after July 1,
122019 at the direction of the Director of the Governor's Office
13of Management and Budget, the State Comptroller shall direct
14and the State Treasurer shall transfer amounts not exceeding a
15total of $25,000,000 from the Rebuild Illinois Projects Fund
16to the Illinois Works Fund.
17    (c) Each community-based organization that receives
18funding from the Illinois Works Fund shall provide an annual
19report to the Illinois Works Review Panel by April 1 of each
20calendar year. The annual report shall include the following
21information:
22        (1) a description of the community-based
23    organization's recruitment, screening, and training
24    efforts;
25        (2) the number of individuals who apply to,
26    participate in, and complete the community-based

 

 

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1    organization's program, broken down by race, gender, age,
2    and veteran status; and
3        (3) the number of the individuals referenced in item
4    (2) of this subsection who are initially accepted and
5    placed into apprenticeship programs in the construction
6    and building trades or, as applicable, trades supporting
7    public utility projects and operations.
8    (d) The Department shall create and administer the
9Illinois Works Bid Credit Program that shall provide economic
10incentives, through bid credits, to encourage contractors and
11subcontractors to provide contracting and employment
12opportunities to historically underrepresented populations in
13the construction industry.
14    The Illinois Works Bid Credit Program shall allow
15contractors and subcontractors to earn bid credits for use
16toward future bids for public works projects contracted by the
17State or an agency of the State in order to increase the
18chances that the contractor and the subcontractors will be
19selected.
20    Contractors or subcontractors may be eligible for bid
21credits for employing apprentices who have completed the
22Illinois Works Preapprenticeship Program on public works
23projects contracted by the State or any agency of the State.
24Contractors or subcontractors shall earn bid credits at a rate
25established by the Department and based on labor hours worked
26on State-contracted public works projects by apprentices who

 

 

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1have completed the Illinois Works Preapprenticeship Program.
2The Department shall establish the rate by rule and shall
3publish it on the Department's website. The rule may include
4maximum bid credits allowed per contractor, per subcontractor,
5per apprentice, per bid, or per year.
6    The Illinois Works Credit Bank is hereby created and shall
7be administered by the Department. The Illinois Works Credit
8Bank shall track the bid credits.
9    A contractor or subcontractor who has been awarded bid
10credits under any other State program for employing
11apprentices who have completed the Illinois Works
12Preapprenticeship Program is not eligible to receive bid
13credits under the Illinois Works Bid Credit Program relating
14to the same contract.
15    The Department shall report to the Illinois Works Review
16Panel the following: (i) the number of bid credits awarded by
17the Department; (ii) the number of bid credits submitted by
18the contractor or subcontractor to the agency administering
19the public works contract; and (iii) the number of bid credits
20accepted by the agency for such contract. Any agency that
21awards bid credits pursuant to the Illinois Works Credit Bank
22Program shall report to the Department the number of bid
23credits it accepted for the public works contract.
24    Upon a finding that a contractor or subcontractor has
25reported falsified records to the Department in order to
26fraudulently obtain bid credits, the Department may bar the

 

 

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1contractor or subcontractor from participating in the Illinois
2Works Bid Credit Program and may suspend the contractor or
3subcontractor from bidding on or participating in any public
4works project. False or fraudulent claims for payment relating
5to false bid credits may be subject to damages and penalties
6under applicable law.
7    (e) The Department shall adopt any rules deemed necessary
8to implement this Section. In order to provide for the
9expeditious and timely implementation of this Act, the
10Department may adopt emergency rules. The adoption of
11emergency rules authorized by this subsection is deemed to be
12necessary for the public interest, safety, and welfare.
13    (f) Notwithstanding the provisions of this Act, the
14$5,000,000 deposited into the Illinois Works Fund pursuant to
15subsection (k) of Section 16-108 of the Public Utilities Act
16shall be used solely for the purpose of funding activities to
17recruit, prescreen, and provide preapprenticeship skills
18training, which participants may attend free of charge and
19receive a stipend, to create a qualified, diverse pipeline of
20workers who are prepared for careers in trades supporting
21public utility projects and operations.
22(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)
 
23    Section 90-25. The School Construction Law is amended by
24changing Section 5-40 as follows:
 

 

 

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1    (105 ILCS 230/5-40)
2    Sec. 5-40. Supervision of school construction projects;
3green projects. The Capital Development Board shall exercise
4general supervision over school construction projects financed
5pursuant to this Article. School districts, however, must be
6allowed to choose the architect and engineer for their school
7construction projects, and no project may be disapproved by
8the State Board of Education or the Capital Development Board
9solely due to a school district's selection of an architect or
10engineer.
11    With respect to those school construction projects for
12which a school district first applies for a grant on or after
13July 1, 2007, the school construction project must receive
14certification from the United States Green Building Council's
15Leadership in Energy and Environmental Design Green Building
16Rating System or the Green Building Initiative's Green Globes
17Green Building Rating System or must meet green building
18standards of the Capital Development Board and its Green
19Building Advisory Committee. With respect to those school
20construction projects for which a school district applies for
21a grant on or after July 1, 2009, the school construction
22project must receive silver certification from the United
23States Green Building Council's Leadership in Energy and
24Environmental Design Green Building Rating System unless all
25of the following are met:
26        (1) the application submitted can be categorized as a

 

 

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1    capital need prioritized under item (1) of Section 5-30 of
2    this Law;
3        (2) the renovation or replacement school construction
4    project is less than 40% replacement cost, or the project
5    has been granted a waiver by the Capital Development Board
6    in consultation with the State Board of Education in
7    accordance with rules promulgated pursuant to this Law;
8        (3) the school construction project is located in a
9    county that borders the Mississippi River with a
10    population of more than 33,000 and less than 34,000,
11    according to the 2010 decennial census;
12        (4) the school district for which the school
13    construction grant will be issued has no more than 1,100
14    students, with the relevant school facility housing no
15    more than 700 students;
16        (5) the facilities for which the school construction
17    grant will be used have been condemned as of July 23, 2012;
18    and
19        (6) the application for the school construction grant
20    has been approved prior to the effective date of this
21    amendatory Act of the 98th General Assembly.
22    With respect to those public school construction projects
23for public schools as defined by Section 1-3 of the School Code
24that are within the service territory of an electric utility
25as defined by Section 16-102 of the Public Utilities Act that
26is serving over 500,000 retail customers in this State, and

 

 

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1for which a public school district applies for a grant under
2this Section 5-40 on or after June 1, 2023, the district must
3submit a copy of the applicable Public Schools Carbon-Free
4Assessment report as provided for in Section 8-402.2 of the
5Public Utilities Act or, if no such Public Schools Carbon-Free
6Assessment has been performed, request the applicable utility
7to perform such a Public Schools Carbon-Free Assessment and
8submit a copy of the Public Schools Carbon-Free Assessment
9report promptly when it becomes available. The Public Schools
10Carbon-Free Assessment report shall include a mechanical
11insulation evaluation inspection and inspection of the
12building envelope. The district must demonstrate how the
13construction project is designed and managed to achieve the
14goals that all public elementary and secondary school
15facilities in the State are able to be powered by clean energy
16by 2030 and for such facilities to achieve carbon-free energy
17sources for space heat, water heat, and transportation by
182050.
19(Source: P.A. 98-623, eff. 1-7-14.)
 
20    Section 90-30. The Public Utilities Act is amended by
21changing Sections 8-103B, 9-222.1, 16-108, 16-111.5, 16-122,
22and 16-123 and by adding Sections 8-106, 8-107, 8-108, 8-218,
238-402.2, 8-411, 8-511.1, 8-512, 8-514, 9-201.1, 9-201.2,
249-232, 9-247, 16-108.13, and 16-140 as follows:
 

 

 

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1    (220 ILCS 5/8-103B)
2    Sec. 8-103B. Energy efficiency and demand-response
3measures.
4    (a) It is the policy of the State that electric utilities
5are required to use cost-effective energy efficiency and
6demand-response measures to reduce delivery load. Requiring
7investment in cost-effective energy efficiency and
8demand-response measures will reduce direct and indirect costs
9to consumers by decreasing environmental impacts and by
10avoiding or delaying the need for new generation,
11transmission, and distribution infrastructure. It serves the
12public interest to allow electric utilities to recover costs
13for reasonably and prudently incurred expenditures for energy
14efficiency and demand-response measures. As used in this
15Section, "cost-effective" means that the measures satisfy the
16total resource cost test. The low-income measures described in
17subsection (c) of this Section shall not be required to meet
18the total resource cost test. For purposes of this Section,
19the terms "energy-efficiency", "demand-response", "electric
20utility", and "total resource cost test" have the meanings set
21forth in the Illinois Power Agency Act.
22    (a-5) This Section applies to electric utilities serving
23more than 500,000 retail customers in the State for those
24multi-year plans commencing after December 31, 2017.
25    (b) For purposes of this Section, electric utilities
26subject to this Section that serve more than 3,000,000 retail

 

 

10200SB1100sam001- 248 -LRB102 04924 SPS 24488 a

1customers in the State shall be deemed to have achieved a
2cumulative persisting annual savings of 6.6% from energy
3efficiency measures and programs implemented during the period
4beginning January 1, 2012 and ending December 31, 2017, which
5percent is based on the deemed average weather normalized
6sales of electric power and energy during calendar years 2014,
72015, and 2016 of 88,000,000 MWhs. For the purposes of this
8subsection (b) and subsection (b-5), the 88,000,000 MWhs of
9deemed electric power and energy sales shall be reduced by the
10number of MWhs equal to the sum of the annual consumption of
11customers that are exempt from subsections (a) through (j) of
12this Section under subsection (l) of this Section, as averaged
13across the calendar years 2014, 2015, and 2016. After 2017,
14the deemed value of cumulative persisting annual savings from
15energy efficiency measures and programs implemented during the
16period beginning January 1, 2012 and ending December 31, 2017,
17shall be reduced each year, as follows, and the applicable
18value shall be applied to and count toward the utility's
19achievement of the cumulative persisting annual savings goals
20set forth in subsection (b-5):
21        (1) 5.8% deemed cumulative persisting annual savings
22    for the year ending December 31, 2018;
23        (2) 5.2% deemed cumulative persisting annual savings
24    for the year ending December 31, 2019;
25        (3) 4.5% deemed cumulative persisting annual savings
26    for the year ending December 31, 2020;

 

 

10200SB1100sam001- 249 -LRB102 04924 SPS 24488 a

1        (4) 4.0% deemed cumulative persisting annual savings
2    for the year ending December 31, 2021;
3        (5) 3.5% deemed cumulative persisting annual savings
4    for the year ending December 31, 2022;
5        (6) 3.1% deemed cumulative persisting annual savings
6    for the year ending December 31, 2023;
7        (7) 2.8% deemed cumulative persisting annual savings
8    for the year ending December 31, 2024;
9        (8) 2.5% deemed cumulative persisting annual savings
10    for the year ending December 31, 2025;
11        (9) 2.3% deemed cumulative persisting annual savings
12    for the year ending December 31, 2026;
13        (10) 2.1% deemed cumulative persisting annual savings
14    for the year ending December 31, 2027;
15        (11) 1.8% deemed cumulative persisting annual savings
16    for the year ending December 31, 2028;
17        (12) 1.7% deemed cumulative persisting annual savings
18    for the year ending December 31, 2029; and
19        (13) 1.5% deemed cumulative persisting annual savings
20    for the year ending December 31, 2030.
21    For purposes of this Section, "cumulative persisting
22annual savings" means the total electric energy savings in a
23given year from measures installed in that year or in previous
24years, but no earlier than January 1, 2012, that are still
25operational and providing savings in that year because the
26measures have not yet reached the end of their useful lives.

 

 

10200SB1100sam001- 250 -LRB102 04924 SPS 24488 a

1    (b-5) Beginning in 2018, electric utilities subject to
2this Section that serve more than 3,000,000 retail customers
3in the State shall achieve the following cumulative persisting
4annual savings goals, as modified by subsection (f) of this
5Section and as compared to the deemed baseline of 88,000,000
6MWhs of electric power and energy sales set forth in
7subsection (b), as reduced by the number of MWhs equal to the
8sum of the annual consumption of customers that are exempt
9from subsections (a) through (j) of this Section under
10subsection (l) of this Section as averaged across the calendar
11years 2014, 2015, and 2016, through the implementation of
12energy efficiency measures during the applicable year and in
13prior years, but no earlier than January 1, 2012:
14        (1) 7.8% cumulative persisting annual savings for the
15    year ending December 31, 2018;
16        (2) 9.1% cumulative persisting annual savings for the
17    year ending December 31, 2019;
18        (3) 10.4% cumulative persisting annual savings for the
19    year ending December 31, 2020;
20        (4) 11.8% cumulative persisting annual savings for the
21    year ending December 31, 2021;
22        (5) 13.1% cumulative persisting annual savings for the
23    year ending December 31, 2022;
24        (6) 14.4% cumulative persisting annual savings for the
25    year ending December 31, 2023;
26        (7) 15.7% cumulative persisting annual savings for the

 

 

10200SB1100sam001- 251 -LRB102 04924 SPS 24488 a

1    year ending December 31, 2024;
2        (8) 17% cumulative persisting annual savings for the
3    year ending December 31, 2025;
4        (9) 17.9% cumulative persisting annual savings for the
5    year ending December 31, 2026;
6        (10) 18.8% cumulative persisting annual savings for
7    the year ending December 31, 2027;
8        (11) 19.7% cumulative persisting annual savings for
9    the year ending December 31, 2028;
10        (12) 20.6% cumulative persisting annual savings for
11    the year ending December 31, 2029; and
12        (13) 21.5% cumulative persisting annual savings for
13    the year ending December 31, 2030.
14    (b-10) For purposes of this Section, electric utilities
15subject to this Section that serve less than 3,000,000 retail
16customers but more than 500,000 retail customers in the State
17shall be deemed to have achieved a cumulative persisting
18annual savings of 6.6% from energy efficiency measures and
19programs implemented during the period beginning January 1,
202012 and ending December 31, 2017, which is based on the deemed
21average weather normalized sales of electric power and energy
22during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
23For the purposes of this subsection (b-10) and subsection
24(b-15), the 36,900,000 MWhs of deemed electric power and
25energy sales shall be reduced by the number of MWhs equal to
26the sum of the annual consumption of customers that are exempt

 

 

10200SB1100sam001- 252 -LRB102 04924 SPS 24488 a

1from subsections (a) through (j) of this Section under
2subsection (l) of this Section, as averaged across the
3calendar years 2014, 2015, and 2016. After 2017, the deemed
4value of cumulative persisting annual savings from energy
5efficiency measures and programs implemented during the period
6beginning January 1, 2012 and ending December 31, 2017, shall
7be reduced each year, as follows, and the applicable value
8shall be applied to and count toward the utility's achievement
9of the cumulative persisting annual savings goals set forth in
10subsection (b-15):
11        (1) 5.8% deemed cumulative persisting annual savings
12    for the year ending December 31, 2018;
13        (2) 5.2% deemed cumulative persisting annual savings
14    for the year ending December 31, 2019;
15        (3) 4.5% deemed cumulative persisting annual savings
16    for the year ending December 31, 2020;
17        (4) 4.0% deemed cumulative persisting annual savings
18    for the year ending December 31, 2021;
19        (5) 3.5% deemed cumulative persisting annual savings
20    for the year ending December 31, 2022;
21        (6) 3.1% deemed cumulative persisting annual savings
22    for the year ending December 31, 2023;
23        (7) 2.8% deemed cumulative persisting annual savings
24    for the year ending December 31, 2024;
25        (8) 2.5% deemed cumulative persisting annual savings
26    for the year ending December 31, 2025;

 

 

10200SB1100sam001- 253 -LRB102 04924 SPS 24488 a

1        (9) 2.3% deemed cumulative persisting annual savings
2    for the year ending December 31, 2026;
3        (10) 2.1% deemed cumulative persisting annual savings
4    for the year ending December 31, 2027;
5        (11) 1.8% deemed cumulative persisting annual savings
6    for the year ending December 31, 2028;
7        (12) 1.7% deemed cumulative persisting annual savings
8    for the year ending December 31, 2029; and
9        (13) 1.5% deemed cumulative persisting annual savings
10    for the year ending December 31, 2030.
11    (b-15) Beginning in 2018, electric utilities subject to
12this Section that serve less than 3,000,000 retail customers
13but more than 500,000 retail customers in the State shall
14achieve the following cumulative persisting annual savings
15goals, as modified by subsection (b-20) and subsection (f) of
16this Section and as compared to the deemed baseline as reduced
17by the number of MWhs equal to the sum of the annual
18consumption of customers that are exempt from subsections (a)
19through (j) of this Section under subsection (l) of this
20Section as averaged across the calendar years 2014, 2015, and
212016, through the implementation of energy efficiency measures
22during the applicable year and in prior years, but no earlier
23than January 1, 2012:
24        (1) 7.4% cumulative persisting annual savings for the
25    year ending December 31, 2018;
26        (2) 8.2% cumulative persisting annual savings for the

 

 

10200SB1100sam001- 254 -LRB102 04924 SPS 24488 a

1    year ending December 31, 2019;
2        (3) 9.0% cumulative persisting annual savings for the
3    year ending December 31, 2020;
4        (4) 9.8% cumulative persisting annual savings for the
5    year ending December 31, 2021;
6        (5) 10.6% cumulative persisting annual savings for the
7    year ending December 31, 2022;
8        (6) 11.4% cumulative persisting annual savings for the
9    year ending December 31, 2023;
10        (7) 12.2% cumulative persisting annual savings for the
11    year ending December 31, 2024;
12        (8) 13% cumulative persisting annual savings for the
13    year ending December 31, 2025;
14        (9) 13.6% cumulative persisting annual savings for the
15    year ending December 31, 2026;
16        (10) 14.2% cumulative persisting annual savings for
17    the year ending December 31, 2027;
18        (11) 14.8% cumulative persisting annual savings for
19    the year ending December 31, 2028;
20        (12) 15.4% cumulative persisting annual savings for
21    the year ending December 31, 2029; and
22        (13) 16% cumulative persisting annual savings for the
23    year ending December 31, 2030.
24    The difference between the cumulative persisting annual
25savings goal for the applicable calendar year and the
26cumulative persisting annual savings goal for the immediately

 

 

10200SB1100sam001- 255 -LRB102 04924 SPS 24488 a

1preceding calendar year is 0.8% for the period of January 1,
22018 through December 31, 2025 and 0.6% for the period of
3January 1, 2026 through December 31, 2030.
4    (b-20) Each electric utility subject to this Section may
5include cost-effective voltage optimization measures in its
6plans submitted under subsections (f) and (g) of this Section,
7and the costs incurred by a utility to implement the measures
8under a Commission-approved plan shall be recovered under the
9provisions of Article IX or Section 16-108.5 of this Act. For
10purposes of this Section, the measure life of voltage
11optimization measures shall be 15 years. The measure life
12period is independent of the depreciation rate of the voltage
13optimization assets deployed.
14    Within 270 days after June 1, 2017 (the effective date of
15Public Act 99-906), an electric utility that serves less than
163,000,000 retail customers but more than 500,000 retail
17customers in the State shall file a plan with the Commission
18that identifies the cost-effective voltage optimization
19investment the electric utility plans to undertake through
20December 31, 2024. The Commission, after notice and hearing,
21shall approve or approve with modification the plan within 120
22days after the plan's filing and, in the order approving or
23approving with modification the plan, the Commission shall
24adjust the applicable cumulative persisting annual savings
25goals set forth in subsection (b-15) to reflect any amount of
26cost-effective energy savings approved by the Commission that

 

 

10200SB1100sam001- 256 -LRB102 04924 SPS 24488 a

1is greater than or less than the following cumulative
2persisting annual savings values attributable to voltage
3optimization for the applicable year:
4        (1) 0.0% of cumulative persisting annual savings for
5    the year ending December 31, 2018;
6        (2) 0.17% of cumulative persisting annual savings for
7    the year ending December 31, 2019;
8        (3) 0.17% of cumulative persisting annual savings for
9    the year ending December 31, 2020;
10        (4) 0.33% of cumulative persisting annual savings for
11    the year ending December 31, 2021;
12        (5) 0.5% of cumulative persisting annual savings for
13    the year ending December 31, 2022;
14        (6) 0.67% of cumulative persisting annual savings for
15    the year ending December 31, 2023;
16        (7) 0.83% of cumulative persisting annual savings for
17    the year ending December 31, 2024; and
18        (8) 1.0% of cumulative persisting annual savings for
19    the year ending December 31, 2025.
20    (b-25) In the event an electric utility jointly offers an
21energy efficiency measure or program with a gas utility under
22plans approved under this Section and Section 8-104 of this
23Act, the electric utility may continue offering the program,
24including the gas energy efficiency measures, in the event the
25gas utility discontinues funding the program. In that event,
26the energy savings value associated with such other fuels

 

 

10200SB1100sam001- 257 -LRB102 04924 SPS 24488 a

1shall be converted to electric energy savings on an equivalent
2Btu basis for the premises. However, the electric utility
3shall prioritize programs for low-income residential customers
4to the extent practicable. An electric utility may recover the
5costs of offering the gas energy efficiency measures under
6this subsection (b-25).
7    For those energy efficiency measures or programs that save
8both electricity and other fuels but are not jointly offered
9with a gas utility under plans approved under this Section and
10Section 8-104 or not offered with an affiliated gas utility
11under paragraph (6) of subsection (f) of Section 8-104 of this
12Act, the electric utility may count savings of fuels other
13than electricity toward the achievement of its annual savings
14goal, and the energy savings value associated with such other
15fuels shall be converted to electric energy savings on an
16equivalent Btu basis at the premises.
17    In no event shall more than 10% of each year's applicable
18annual incremental goal as defined in paragraph (7) of
19subsection (g) of this Section be met through savings of fuels
20other than electricity.
21    (c) Electric utilities shall be responsible for overseeing
22the design, development, and filing of energy efficiency plans
23with the Commission and may, as part of that implementation,
24outsource various aspects of program development and
25implementation. A minimum of 10%, for electric utilities that
26serve more than 3,000,000 retail customers in the State, and a

 

 

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1minimum of 7%, for electric utilities that serve less than
23,000,000 retail customers but more than 500,000 retail
3customers in the State, of the utility's entire portfolio
4funding level for a given year shall be used to procure
5cost-effective energy efficiency measures from units of local
6government, municipal corporations, school districts, public
7housing, and community college districts, provided that a
8minimum percentage of available funds shall be used to procure
9energy efficiency from public housing, which percentage shall
10be equal to public housing's share of public building energy
11consumption.
12    The utilities shall also implement energy efficiency
13measures targeted at low-income households, which, for
14purposes of this Section, shall be defined as households at or
15below 80% of area median income, and expenditures to implement
16the measures shall be no less than $25,000,000 per year for
17electric utilities that serve more than 3,000,000 retail
18customers in the State and no less than $8,350,000 per year for
19electric utilities that serve less than 3,000,000 retail
20customers but more than 500,000 retail customers in the State.
21Beginning with the multi-year plan commencing January 1, 2022,
22such minimum annual expenditures shall be increased to
23$50,000,000 and $16,700,000, respectively. Each electric
24utility subject to the requirements of this Section shall be
25permitted, as necessary, to revise its multi-year plan that
26was filed with the Commission prior to the effective date of

 

 

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1this amendatory Act of the 102nd General Assembly but has not
2yet been approved by the Commission on the effective date of
3this amendatory Act of the 102nd General Assembly; if the
4utility's plan was already approved by the Commission before
5such effective date, or it is impractical to revise the plan
6prior to the deadline for Commission approval due to
7insufficient time, the utility shall be permitted, as
8necessary, to submit a compliance filing that modifies the
9plan and its programs as needed to implement the increase in
10low-income expenditures required by this amendatory Act of the
11102nd General Assembly.
12    Each electric utility shall assess opportunities to
13implement cost-effective energy efficiency measures and
14programs through a public housing authority or authorities
15located in its service territory. If such opportunities are
16identified, the utility shall propose such measures and
17programs to address the opportunities. Expenditures to address
18such opportunities shall be credited toward the minimum
19procurement and expenditure requirements set forth in this
20subsection (c).
21    Implementation of energy efficiency measures and programs
22targeted at low-income households should be contracted, when
23it is practicable, to independent third parties that have
24demonstrated capabilities to serve such households, with a
25preference for not-for-profit entities and government agencies
26that have existing relationships with or experience serving

 

 

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1low-income communities in the State.
2    Each electric utility shall develop and implement
3reporting procedures that address and assist in determining
4the amount of energy savings that can be applied to the
5low-income procurement and expenditure requirements set forth
6in this subsection (c).
7    The electric utilities shall also convene a low-income
8energy efficiency advisory committee to assist in the design
9and evaluation of the low-income energy efficiency programs.
10The committee shall be comprised of the electric utilities
11subject to the requirements of this Section, the gas utilities
12subject to the requirements of Section 8-104 of this Act, the
13utilities' low-income energy efficiency implementation
14contractors, and representatives of community-based
15organizations.
16    (d) Notwithstanding any other provision of law to the
17contrary, a utility providing approved energy efficiency
18measures and, if applicable, demand-response measures in the
19State shall be permitted to recover all reasonable and
20prudently incurred costs of those measures from all retail
21customers, except as provided in subsection (l) of this
22Section, as follows, provided that nothing in this subsection
23(d) permits the double recovery of such costs from customers:
24        (1) The utility may recover its costs through an
25    automatic adjustment clause tariff filed with and approved
26    by the Commission. The tariff shall be established outside

 

 

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1    the context of a general rate case. Each year the
2    Commission shall initiate a review to reconcile any
3    amounts collected with the actual costs and to determine
4    the required adjustment to the annual tariff factor to
5    match annual expenditures. To enable the financing of the
6    incremental capital expenditures, including regulatory
7    assets, for electric utilities that serve less than
8    3,000,000 retail customers but more than 500,000 retail
9    customers in the State, the utility's actual year-end
10    capital structure that includes a common equity ratio,
11    excluding goodwill, of up to and including 50% of the
12    total capital structure shall be deemed reasonable and
13    used to set rates.
14        (2) A utility may recover its costs through an energy
15    efficiency formula rate approved by the Commission under a
16    filing under subsections (f) and (g) of this Section,
17    which shall specify the cost components that form the
18    basis of the rate charged to customers with sufficient
19    specificity to operate in a standardized manner and be
20    updated annually with transparent information that
21    reflects the utility's actual costs to be recovered during
22    the applicable rate year, which is the period beginning
23    with the first billing day of January and extending
24    through the last billing day of the following December.
25    The energy efficiency formula rate shall be implemented
26    through a tariff filed with the Commission under

 

 

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1    subsections (f) and (g) of this Section that is consistent
2    with the provisions of this paragraph (2) and that shall
3    be applicable to all delivery services customers. The
4    Commission shall conduct an investigation of the tariff in
5    a manner consistent with the provisions of this paragraph
6    (2), subsections (f) and (g) of this Section, and the
7    provisions of Article IX of this Act to the extent they do
8    not conflict with this paragraph (2). The energy
9    efficiency formula rate approved by the Commission shall
10    remain in effect at the discretion of the utility and
11    shall do the following:
12            (A) Provide for the recovery of the utility's
13        actual costs incurred under this Section that are
14        prudently incurred and reasonable in amount consistent
15        with Commission practice and law. The sole fact that a
16        cost differs from that incurred in a prior calendar
17        year or that an investment is different from that made
18        in a prior calendar year shall not imply the
19        imprudence or unreasonableness of that cost or
20        investment.
21            (B) Reflect the utility's actual year-end capital
22        structure for the applicable calendar year, excluding
23        goodwill, subject to a determination of prudence and
24        reasonableness consistent with Commission practice and
25        law. To enable the financing of the incremental
26        capital expenditures, including regulatory assets, for

 

 

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1        electric utilities that serve less than 3,000,000
2        retail customers but more than 500,000 retail
3        customers in the State, a participating electric
4        utility's actual year-end capital structure that
5        includes a common equity ratio, excluding goodwill, of
6        up to and including 50% of the total capital structure
7        shall be deemed reasonable and used to set rates.
8            (C) Include a cost of equity, which shall be
9        calculated as the sum of the following:
10                (i) the average for the applicable calendar
11            year of the monthly average yields of 30-year U.S.
12            Treasury bonds published by the Board of Governors
13            of the Federal Reserve System in its weekly H.15
14            Statistical Release or successor publication; and
15                (ii) 580 basis points.
16            At such time as the Board of Governors of the
17        Federal Reserve System ceases to include the monthly
18        average yields of 30-year U.S. Treasury bonds in its
19        weekly H.15 Statistical Release or successor
20        publication, the monthly average yields of the U.S.
21        Treasury bonds then having the longest duration
22        published by the Board of Governors in its weekly H.15
23        Statistical Release or successor publication shall
24        instead be used for purposes of this paragraph (2).
25            (D) Permit and set forth protocols, subject to a
26        determination of prudence and reasonableness

 

 

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1        consistent with Commission practice and law, for the
2        following:
3                (i) recovery of incentive compensation expense
4            that is based on the achievement of operational
5            metrics, including metrics related to budget
6            controls, outage duration and frequency, safety,
7            customer service, efficiency and productivity, and
8            environmental compliance; however, this protocol
9            shall not apply if such expense related to costs
10            incurred under this Section is recovered under
11            Article IX or Section 16-108.5 of this Act;
12            incentive compensation expense that is based on
13            net income or an affiliate's earnings per share
14            shall not be recoverable under the energy
15            efficiency formula rate;
16                (ii) recovery of pension and other
17            post-employment benefits expense, provided that
18            such costs are supported by an actuarial study;
19            however, this protocol shall not apply if such
20            expense related to costs incurred under this
21            Section is recovered under Article IX or Section
22            16-108.5 of this Act;
23                (iii) recovery of existing regulatory assets
24            over the periods previously authorized by the
25            Commission;
26                (iv) as described in subsection (e),

 

 

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1            amortization of costs incurred under this Section;
2            and
3                (v) projected, weather normalized billing
4            determinants for the applicable rate year.
5            (E) Provide for an annual reconciliation, as
6        described in paragraph (3) of this subsection (d),
7        less any deferred taxes related to the reconciliation,
8        with interest at an annual rate of return equal to the
9        utility's weighted average cost of capital, including
10        a revenue conversion factor calculated to recover or
11        refund all additional income taxes that may be payable
12        or receivable as a result of that return, of the energy
13        efficiency revenue requirement reflected in rates for
14        each calendar year, beginning with the calendar year
15        in which the utility files its energy efficiency
16        formula rate tariff under this paragraph (2), with
17        what the revenue requirement would have been had the
18        actual cost information for the applicable calendar
19        year been available at the filing date.
20        The utility shall file, together with its tariff, the
21    projected costs to be incurred by the utility during the
22    rate year under the utility's multi-year plan approved
23    under subsections (f) and (g) of this Section, including,
24    but not limited to, the projected capital investment costs
25    and projected regulatory asset balances with
26    correspondingly updated depreciation and amortization

 

 

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1    reserves and expense, that shall populate the energy
2    efficiency formula rate and set the initial rates under
3    the formula.
4        The Commission shall review the proposed tariff in
5    conjunction with its review of a proposed multi-year plan,
6    as specified in paragraph (5) of subsection (g) of this
7    Section. The review shall be based on the same evidentiary
8    standards, including, but not limited to, those concerning
9    the prudence and reasonableness of the costs incurred by
10    the utility, the Commission applies in a hearing to review
11    a filing for a general increase in rates under Article IX
12    of this Act. The initial rates shall take effect beginning
13    with the January monthly billing period following the
14    Commission's approval.
15        The tariff's rate design and cost allocation across
16    customer classes shall be consistent with the utility's
17    automatic adjustment clause tariff in effect on June 1,
18    2017 (the effective date of Public Act 99-906); however,
19    the Commission may revise the tariff's rate design and
20    cost allocation in subsequent proceedings under paragraph
21    (3) of this subsection (d).
22        If the energy efficiency formula rate is terminated,
23    the then current rates shall remain in effect until such
24    time as the energy efficiency costs are incorporated into
25    new rates that are set under this subsection (d) or
26    Article IX of this Act, subject to retroactive rate

 

 

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1    adjustment, with interest, to reconcile rates charged with
2    actual costs.
3        (3) The provisions of this paragraph (3) shall only
4    apply to an electric utility that has elected to file an
5    energy efficiency formula rate under paragraph (2) of this
6    subsection (d). Subsequent to the Commission's issuance of
7    an order approving the utility's energy efficiency formula
8    rate structure and protocols, and initial rates under
9    paragraph (2) of this subsection (d), the utility shall
10    file, on or before June 1 of each year, with the Chief
11    Clerk of the Commission its updated cost inputs to the
12    energy efficiency formula rate for the applicable rate
13    year and the corresponding new charges, as well as the
14    information described in paragraph (9) of subsection (g)
15    of this Section. Each such filing shall conform to the
16    following requirements and include the following
17    information:
18            (A) The inputs to the energy efficiency formula
19        rate for the applicable rate year shall be based on the
20        projected costs to be incurred by the utility during
21        the rate year under the utility's multi-year plan
22        approved under subsections (f) and (g) of this
23        Section, including, but not limited to, projected
24        capital investment costs and projected regulatory
25        asset balances with correspondingly updated
26        depreciation and amortization reserves and expense.

 

 

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1        The filing shall also include a reconciliation of the
2        energy efficiency revenue requirement that was in
3        effect for the prior rate year (as set by the cost
4        inputs for the prior rate year) with the actual
5        revenue requirement for the prior rate year
6        (determined using a year-end rate base) that uses
7        amounts reflected in the applicable FERC Form 1 that
8        reports the actual costs for the prior rate year. Any
9        over-collection or under-collection indicated by such
10        reconciliation shall be reflected as a credit against,
11        or recovered as an additional charge to, respectively,
12        with interest calculated at a rate equal to the
13        utility's weighted average cost of capital approved by
14        the Commission for the prior rate year, the charges
15        for the applicable rate year. Such over-collection or
16        under-collection shall be adjusted to remove any
17        deferred taxes related to the reconciliation, for
18        purposes of calculating interest at an annual rate of
19        return equal to the utility's weighted average cost of
20        capital approved by the Commission for the prior rate
21        year, including a revenue conversion factor calculated
22        to recover or refund all additional income taxes that
23        may be payable or receivable as a result of that
24        return. Each reconciliation shall be certified by the
25        participating utility in the same manner that FERC
26        Form 1 is certified. The filing shall also include the

 

 

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1        charge or credit, if any, resulting from the
2        calculation required by subparagraph (E) of paragraph
3        (2) of this subsection (d).
4            Notwithstanding any other provision of law to the
5        contrary, the intent of the reconciliation is to
6        ultimately reconcile both the revenue requirement
7        reflected in rates for each calendar year, beginning
8        with the calendar year in which the utility files its
9        energy efficiency formula rate tariff under paragraph
10        (2) of this subsection (d), with what the revenue
11        requirement determined using a year-end rate base for
12        the applicable calendar year would have been had the
13        actual cost information for the applicable calendar
14        year been available at the filing date.
15            For purposes of this Section, "FERC Form 1" means
16        the Annual Report of Major Electric Utilities,
17        Licensees and Others that electric utilities are
18        required to file with the Federal Energy Regulatory
19        Commission under the Federal Power Act, Sections 3,
20        4(a), 304 and 209, modified as necessary to be
21        consistent with 83 Ill. Admin. Code Part 415 as of May
22        1, 2011. Nothing in this Section is intended to allow
23        costs that are not otherwise recoverable to be
24        recoverable by virtue of inclusion in FERC Form 1.
25            (B) The new charges shall take effect beginning on
26        the first billing day of the following January billing

 

 

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1        period and remain in effect through the last billing
2        day of the next December billing period regardless of
3        whether the Commission enters upon a hearing under
4        this paragraph (3).
5            (C) The filing shall include relevant and
6        necessary data and documentation for the applicable
7        rate year. Normalization adjustments shall not be
8        required.
9        Within 45 days after the utility files its annual
10    update of cost inputs to the energy efficiency formula
11    rate, the Commission shall with reasonable notice,
12    initiate a proceeding concerning whether the projected
13    costs to be incurred by the utility and recovered during
14    the applicable rate year, and that are reflected in the
15    inputs to the energy efficiency formula rate, are
16    consistent with the utility's approved multi-year plan
17    under subsections (f) and (g) of this Section and whether
18    the costs incurred by the utility during the prior rate
19    year were prudent and reasonable. The Commission shall
20    also have the authority to investigate the information and
21    data described in paragraph (9) of subsection (g) of this
22    Section, including the proposed adjustment to the
23    utility's return on equity component of its weighted
24    average cost of capital. During the course of the
25    proceeding, each objection shall be stated with
26    particularity and evidence provided in support thereof,

 

 

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1    after which the utility shall have the opportunity to
2    rebut the evidence. Discovery shall be allowed consistent
3    with the Commission's Rules of Practice, which Rules of
4    Practice shall be enforced by the Commission or the
5    assigned administrative law judge. The Commission shall
6    apply the same evidentiary standards, including, but not
7    limited to, those concerning the prudence and
8    reasonableness of the costs incurred by the utility,
9    during the proceeding as it would apply in a proceeding to
10    review a filing for a general increase in rates under
11    Article IX of this Act. The Commission shall not, however,
12    have the authority in a proceeding under this paragraph
13    (3) to consider or order any changes to the structure or
14    protocols of the energy efficiency formula rate approved
15    under paragraph (2) of this subsection (d). In a
16    proceeding under this paragraph (3), the Commission shall
17    enter its order no later than the earlier of 195 days after
18    the utility's filing of its annual update of cost inputs
19    to the energy efficiency formula rate or December 15. The
20    utility's proposed return on equity calculation, as
21    described in paragraphs (7) through (9) of subsection (g)
22    of this Section, shall be deemed the final, approved
23    calculation on December 15 of the year in which it is filed
24    unless the Commission enters an order on or before
25    December 15, after notice and hearing, that modifies such
26    calculation consistent with this Section. The Commission's

 

 

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1    determinations of the prudence and reasonableness of the
2    costs incurred, and determination of such return on equity
3    calculation, for the applicable calendar year shall be
4    final upon entry of the Commission's order and shall not
5    be subject to reopening, reexamination, or collateral
6    attack in any other Commission proceeding, case, docket,
7    order, rule, or regulation; however, nothing in this
8    paragraph (3) shall prohibit a party from petitioning the
9    Commission to rehear or appeal to the courts the order
10    under the provisions of this Act.
11    (e) Beginning on June 1, 2017 (the effective date of
12Public Act 99-906), a utility subject to the requirements of
13this Section may elect to defer, as a regulatory asset, up to
14the full amount of its expenditures incurred under this
15Section for each annual period, including, but not limited to,
16any expenditures incurred above the funding level set by
17subsection (f) of this Section for a given year. The total
18expenditures deferred as a regulatory asset in a given year
19shall be amortized and recovered over a period that is equal to
20the weighted average of the energy efficiency measure lives
21implemented for that year that are reflected in the regulatory
22asset. The unamortized balance shall be recognized as of
23December 31 for a given year. The utility shall also earn a
24return on the total of the unamortized balances of all of the
25energy efficiency regulatory assets, less any deferred taxes
26related to those unamortized balances, at an annual rate equal

 

 

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1to the utility's weighted average cost of capital that
2includes, based on a year-end capital structure, the utility's
3actual cost of debt for the applicable calendar year and a cost
4of equity, which shall be calculated as the sum of the (i) the
5average for the applicable calendar year of the monthly
6average yields of 30-year U.S. Treasury bonds published by the
7Board of Governors of the Federal Reserve System in its weekly
8H.15 Statistical Release or successor publication; and (ii)
9580 basis points, including a revenue conversion factor
10calculated to recover or refund all additional income taxes
11that may be payable or receivable as a result of that return.
12Capital investment costs shall be depreciated and recovered
13over their useful lives consistent with generally accepted
14accounting principles. The weighted average cost of capital
15shall be applied to the capital investment cost balance, less
16any accumulated depreciation and accumulated deferred income
17taxes, as of December 31 for a given year.
18    When an electric utility creates a regulatory asset under
19the provisions of this Section, the costs are recovered over a
20period during which customers also receive a benefit which is
21in the public interest. Accordingly, it is the intent of the
22General Assembly that an electric utility that elects to
23create a regulatory asset under the provisions of this Section
24shall recover all of the associated costs as set forth in this
25Section. After the Commission has approved the prudence and
26reasonableness of the costs that comprise the regulatory

 

 

10200SB1100sam001- 274 -LRB102 04924 SPS 24488 a

1asset, the electric utility shall be permitted to recover all
2such costs, and the value and recoverability through rates of
3the associated regulatory asset shall not be limited, altered,
4impaired, or reduced.
5    (f) Beginning in 2017, each electric utility shall file an
6energy efficiency plan with the Commission to meet the energy
7efficiency standards for the next applicable multi-year period
8beginning January 1 of the year following the filing,
9according to the schedule set forth in paragraphs (1) through
10(3) of this subsection (f). If a utility does not file such a
11plan on or before the applicable filing deadline for the plan,
12it shall face a penalty of $100,000 per day until the plan is
13filed.
14        (1) No later than 30 days after June 1, 2017 (the
15    effective date of Public Act 99-906), each electric
16    utility shall file a 4-year energy efficiency plan
17    commencing on January 1, 2018 that is designed to achieve
18    the cumulative persisting annual savings goals specified
19    in paragraphs (1) through (4) of subsection (b-5) of this
20    Section or in paragraphs (1) through (4) of subsection
21    (b-15) of this Section, as applicable, through
22    implementation of energy efficiency measures; however, the
23    goals may be reduced if the utility's expenditures are
24    limited pursuant to subsection (m) of this Section or, for
25    a utility that serves less than 3,000,000 retail
26    customers, if each of the following conditions are met:

 

 

10200SB1100sam001- 275 -LRB102 04924 SPS 24488 a

1    (A) the plan's analysis and forecasts of the utility's
2    ability to acquire energy savings demonstrate that
3    achievement of such goals is not cost-effective cost
4    effective; and (B) the amount of energy savings achieved
5    by the utility as determined by the independent evaluator
6    for the most recent year for which savings have been
7    evaluated preceding the plan filing was less than the
8    average annual amount of savings required to achieve the
9    goals for the applicable 4-year plan period. Except as
10    provided in subsection (m) of this Section, annual
11    increases in cumulative persisting annual savings goals
12    during the applicable 4-year plan period shall not be
13    reduced to amounts that are less than the maximum amount
14    of cumulative persisting annual savings that is forecast
15    to be cost-effectively achievable during the 4-year plan
16    period. The Commission shall review any proposed goal
17    reduction as part of its review and approval of the
18    utility's proposed plan.
19        (2) No later than March 1, 2021, each electric utility
20    shall file a 4-year energy efficiency plan commencing on
21    January 1, 2022 that is designed to achieve the cumulative
22    persisting annual savings goals specified in paragraphs
23    (5) through (8) of subsection (b-5) of this Section or in
24    paragraphs (5) through (8) of subsection (b-15) of this
25    Section, as applicable, through implementation of energy
26    efficiency measures; however, the goals may be reduced if

 

 

10200SB1100sam001- 276 -LRB102 04924 SPS 24488 a

1    the utility's expenditures are limited pursuant to
2    subsection (m) of this Section or, each of the following
3    conditions are met: (A) the plan's analysis and forecasts
4    of the utility's ability to acquire energy savings
5    demonstrate that achievement of such goals is not
6    cost-effective cost effective; and (B) the amount of
7    energy savings achieved by the utility as determined by
8    the independent evaluator for the most recent year for
9    which savings have been evaluated preceding the plan
10    filing was less than the average annual amount of savings
11    required to achieve the goals for the applicable 4-year
12    plan period. Except as provided in subsection (m) of this
13    Section, annual increases in cumulative persisting annual
14    savings goals during the applicable 4-year plan period
15    shall not be reduced to amounts that are less than the
16    maximum amount of cumulative persisting annual savings
17    that is forecast to be cost-effectively achievable during
18    the 4-year plan period. The Commission shall review any
19    proposed goal reduction as part of its review and approval
20    of the utility's proposed plan.
21        (3) No later than March 1, 2025, each electric utility
22    shall file a 5-year energy efficiency plan commencing on
23    January 1, 2026 that is designed to achieve the cumulative
24    persisting annual savings goals specified in paragraphs
25    (9) through (13) of subsection (b-5) of this Section or in
26    paragraphs (9) through (13) of subsection (b-15) of this

 

 

10200SB1100sam001- 277 -LRB102 04924 SPS 24488 a

1    Section, as applicable, through implementation of energy
2    efficiency measures; however, the goals may be reduced if
3    the utility's expenditures are limited pursuant to
4    subsection (m) of this Section or, each of the following
5    conditions are met: (A) the plan's analysis and forecasts
6    of the utility's ability to acquire energy savings
7    demonstrate that achievement of such goals is not
8    cost-effective cost effective; and (B) the amount of
9    energy savings achieved by the utility as determined by
10    the independent evaluator for the most recent year for
11    which savings have been evaluated preceding the plan
12    filing was less than the average annual amount of savings
13    required to achieve the goals for the applicable 5-year
14    plan period. Except as provided in subsection (m) of this
15    Section, annual increases in cumulative persisting annual
16    savings goals during the applicable 5-year plan period
17    shall not be reduced to amounts that are less than the
18    maximum amount of cumulative persisting annual savings
19    that is forecast to be cost-effectively achievable during
20    the 5-year plan period. The Commission shall review any
21    proposed goal reduction as part of its review and approval
22    of the utility's proposed plan.
23    Each utility's plan shall set forth the utility's
24proposals to meet the energy efficiency standards identified
25in subsection (b-5) or (b-15), as applicable and as such
26standards may have been modified under this subsection (f),

 

 

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1taking into account the unique circumstances of the utility's
2service territory. For those plans commencing on January 1,
32018, the Commission shall seek public comment on the
4utility's plan and shall issue an order approving or
5disapproving each plan no later than 105 days after June 1,
62017 (the effective date of Public Act 99-906). For those
7plans commencing after December 31, 2021, the Commission shall
8seek public comment on the utility's plan and shall issue an
9order approving or disapproving each plan within 6 months
10after its submission. If the Commission disapproves a plan,
11the Commission shall, within 30 days, describe in detail the
12reasons for the disapproval and describe a path by which the
13utility may file a revised draft of the plan to address the
14Commission's concerns satisfactorily. If the utility does not
15refile with the Commission within 60 days, the utility shall
16be subject to penalties at a rate of $100,000 per day until the
17plan is filed. This process shall continue, and penalties
18shall accrue, until the utility has successfully filed a
19portfolio of energy efficiency and demand-response measures.
20Penalties shall be deposited into the Energy Efficiency Trust
21Fund.
22    (g) In submitting proposed plans and funding levels under
23subsection (f) of this Section to meet the savings goals
24identified in subsection (b-5) or (b-15) of this Section, as
25applicable, the utility shall:
26        (1) Demonstrate that its proposed energy efficiency

 

 

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1    measures will achieve the applicable requirements that are
2    identified in subsection (b-5) or (b-15) of this Section,
3    as modified by subsection (f) of this Section.
4        (2) Present specific proposals to implement new
5    building and appliance standards that have been placed
6    into effect.
7        (3) Demonstrate that its overall portfolio of
8    measures, not including low-income programs described in
9    subsection (c) of this Section, is cost-effective using
10    the total resource cost test or complies with paragraphs
11    (1) through (3) of subsection (f) of this Section and
12    represents a diverse cross-section of opportunities for
13    customers of all rate classes, other than those customers
14    described in subsection (l) of this Section, to
15    participate in the programs. Individual measures need not
16    be cost-effective cost effective.
17        (4) Present a third-party energy efficiency
18    implementation program subject to the following
19    requirements:
20            (A) beginning with the year commencing January 1,
21        2019, electric utilities that serve more than
22        3,000,000 retail customers in the State shall fund
23        third-party energy efficiency programs in an amount
24        that is no less than $25,000,000 per year, and
25        electric utilities that serve less than 3,000,000
26        retail customers but more than 500,000 retail

 

 

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1        customers in the State shall fund third-party energy
2        efficiency programs in an amount that is no less than
3        $8,350,000 per year;
4            (B) during 2018, the utility shall conduct a
5        solicitation process for purposes of requesting
6        proposals from third-party vendors for those
7        third-party energy efficiency programs to be offered
8        during one or more of the years commencing January 1,
9        2019, January 1, 2020, and January 1, 2021; for those
10        multi-year plans commencing on January 1, 2022 and
11        January 1, 2026, the utility shall conduct a
12        solicitation process during 2021 and 2025,
13        respectively, for purposes of requesting proposals
14        from third-party vendors for those third-party energy
15        efficiency programs to be offered during one or more
16        years of the respective multi-year plan period; for
17        each solicitation process, the utility shall identify
18        the sector, technology, or geographical area for which
19        it is seeking requests for proposals;
20            (C) the utility shall propose the bidder
21        qualifications, performance measurement process, and
22        contract structure, which must include a performance
23        payment mechanism and general terms and conditions;
24        the proposed qualifications, process, and structure
25        shall be subject to Commission approval; and
26            (D) the utility shall retain an independent third

 

 

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1        party to score the proposals received through the
2        solicitation process described in this paragraph (4),
3        rank them according to their cost per lifetime
4        kilowatt-hours saved, and assemble the portfolio of
5        third-party programs.
6        The electric utility shall recover all costs
7    associated with Commission-approved, third-party
8    administered programs regardless of the success of those
9    programs.
10        (4.5) Implement cost-effective demand-response
11    measures to reduce peak demand by 0.1% over the prior year
12    for eligible retail customers, as defined in Section
13    16-111.5 of this Act, and for customers that elect hourly
14    service from the utility pursuant to Section 16-107 of
15    this Act, provided those customers have not been declared
16    competitive. This requirement continues until December 31,
17    2026.
18        (5) Include a proposed or revised cost-recovery tariff
19    mechanism, as provided for under subsection (d) of this
20    Section, to fund the proposed energy efficiency and
21    demand-response measures and to ensure the recovery of the
22    prudently and reasonably incurred costs of
23    Commission-approved programs.
24        (6) Provide for an annual independent evaluation of
25    the performance of the cost-effectiveness of the utility's
26    portfolio of measures, as well as a full review of the

 

 

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1    multi-year plan results of the broader net program impacts
2    and, to the extent practical, for adjustment of the
3    measures on a going-forward basis as a result of the
4    evaluations. The resources dedicated to evaluation shall
5    not exceed 3% of portfolio resources in any given year.
6        (7) For electric utilities that serve more than
7    3,000,000 retail customers in the State:
8            (A) Through December 31, 2025, provide for an
9        adjustment to the return on equity component of the
10        utility's weighted average cost of capital calculated
11        under subsection (d) of this Section:
12                (i) If the independent evaluator determines
13            that the utility achieved a cumulative persisting
14            annual savings that is less than the applicable
15            annual incremental goal, then the return on equity
16            component shall be reduced by a maximum of 200
17            basis points in the event that the utility
18            achieved no more than 75% of such goal. If the
19            utility achieved more than 75% of the applicable
20            annual incremental goal but less than 100% of such
21            goal, then the return on equity component shall be
22            reduced by 8 basis points for each percent by
23            which the utility failed to achieve the goal.
24                (ii) If the independent evaluator determines
25            that the utility achieved a cumulative persisting
26            annual savings that is more than the applicable

 

 

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1            annual incremental goal, then the return on equity
2            component shall be increased by a maximum of 200
3            basis points in the event that the utility
4            achieved at least 125% of such goal. If the
5            utility achieved more than 100% of the applicable
6            annual incremental goal but less than 125% of such
7            goal, then the return on equity component shall be
8            increased by 8 basis points for each percent by
9            which the utility achieved above the goal. If the
10            applicable annual incremental goal was reduced
11            under paragraphs (1) or (2) of subsection (f) of
12            this Section, then the following adjustments shall
13            be made to the calculations described in this item
14            (ii):
15                    (aa) the calculation for determining
16                achievement that is at least 125% of the
17                applicable annual incremental goal shall use
18                the unreduced applicable annual incremental
19                goal to set the value; and
20                    (bb) the calculation for determining
21                achievement that is less than 125% but more
22                than 100% of the applicable annual incremental
23                goal shall use the reduced applicable annual
24                incremental goal to set the value for 100%
25                achievement of the goal and shall use the
26                unreduced goal to set the value for 125%

 

 

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1                achievement. The 8 basis point value shall
2                also be modified, as necessary, so that the
3                200 basis points are evenly apportioned among
4                each percentage point value between 100% and
5                125% achievement.
6            (B) For the period January 1, 2026 through
7        December 31, 2030, provide for an adjustment to the
8        return on equity component of the utility's weighted
9        average cost of capital calculated under subsection
10        (d) of this Section:
11                (i) If the independent evaluator determines
12            that the utility achieved a cumulative persisting
13            annual savings that is less than the applicable
14            annual incremental goal, then the return on equity
15            component shall be reduced by a maximum of 200
16            basis points in the event that the utility
17            achieved no more than 66% of such goal. If the
18            utility achieved more than 66% of the applicable
19            annual incremental goal but less than 100% of such
20            goal, then the return on equity component shall be
21            reduced by 6 basis points for each percent by
22            which the utility failed to achieve the goal.
23                (ii) If the independent evaluator determines
24            that the utility achieved a cumulative persisting
25            annual savings that is more than the applicable
26            annual incremental goal, then the return on equity

 

 

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1            component shall be increased by a maximum of 200
2            basis points in the event that the utility
3            achieved at least 134% of such goal. If the
4            utility achieved more than 100% of the applicable
5            annual incremental goal but less than 134% of such
6            goal, then the return on equity component shall be
7            increased by 6 basis points for each percent by
8            which the utility achieved above the goal. If the
9            applicable annual incremental goal was reduced
10            under paragraph (3) of subsection (f) of this
11            Section, then the following adjustments shall be
12            made to the calculations described in this item
13            (ii):
14                    (aa) the calculation for determining
15                achievement that is at least 134% of the
16                applicable annual incremental goal shall use
17                the unreduced applicable annual incremental
18                goal to set the value; and
19                    (bb) the calculation for determining
20                achievement that is less than 134% but more
21                than 100% of the applicable annual incremental
22                goal shall use the reduced applicable annual
23                incremental goal to set the value for 100%
24                achievement of the goal and shall use the
25                unreduced goal to set the value for 134%
26                achievement. The 6 basis point value shall

 

 

10200SB1100sam001- 286 -LRB102 04924 SPS 24488 a

1                also be modified, as necessary, so that the
2                200 basis points are evenly apportioned among
3                each percentage point value between 100% and
4                134% achievement.
5        (7.5) For purposes of this Section, the term
6    "applicable annual incremental goal" means the difference
7    between the cumulative persisting annual savings goal for
8    the calendar year that is the subject of the independent
9    evaluator's determination and the cumulative persisting
10    annual savings goal for the immediately preceding calendar
11    year, as such goals are defined in subsections (b-5) and
12    (b-15) of this Section and as these goals may have been
13    modified as provided for under subsection (b-20) and
14    paragraphs (1) through (3) of subsection (f) of this
15    Section. Under subsections (b), (b-5), (b-10), and (b-15)
16    of this Section, a utility must first replace energy
17    savings from measures that have reached the end of their
18    measure lives and would otherwise have to be replaced to
19    meet the applicable savings goals identified in subsection
20    (b-5) or (b-15) of this Section before any progress toward
21    towards achievement of its applicable annual incremental
22    goal may be counted. Notwithstanding anything else set
23    forth in this Section, the difference between the actual
24    annual incremental savings achieved in any given year,
25    including the replacement of energy savings from measures
26    that have expired, and the applicable annual incremental

 

 

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1    goal shall not affect adjustments to the return on equity
2    for subsequent calendar years under this subsection (g).
3        (8) For electric utilities that serve less than
4    3,000,000 retail customers but more than 500,000 retail
5    customers in the State:
6            (A) Through December 31, 2025, the applicable
7        annual incremental goal shall be compared to the
8        annual incremental savings as determined by the
9        independent evaluator.
10                (i) The return on equity component shall be
11            reduced by 8 basis points for each percent by
12            which the utility did not achieve 84.4% of the
13            applicable annual incremental goal.
14                (ii) The return on equity component shall be
15            increased by 8 basis points for each percent by
16            which the utility exceeded 100% of the applicable
17            annual incremental goal.
18                (iii) The return on equity component shall not
19            be increased or decreased if the annual
20            incremental savings as determined by the
21            independent evaluator is greater than 84.4% of the
22            applicable annual incremental goal and less than
23            100% of the applicable annual incremental goal.
24                (iv) The return on equity component shall not
25            be increased or decreased by an amount greater
26            than 200 basis points pursuant to this

 

 

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1            subparagraph (A).
2            (B) For the period of January 1, 2026 through
3        December 31, 2030, the applicable annual incremental
4        goal shall be compared to the annual incremental
5        savings as 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) If the applicable annual incremental goal was
19        reduced under paragraphs (1), (2) or (3) of subsection
20        (f) of this Section, then the following adjustments
21        shall be made to the calculations described in
22        subparagraphs (A) and (B) of this paragraph (8):
23                (i) The calculation for determining
24            achievement that is at least 125% or 134%, as
25            applicable, of the applicable annual incremental
26            goal shall use the unreduced applicable annual

 

 

10200SB1100sam001- 289 -LRB102 04924 SPS 24488 a

1            incremental goal to set the value.
2                (ii) For the period through December 31, 2025,
3            the calculation for determining achievement that
4            is less than 125% but more than 100% of the
5            applicable annual incremental goal shall use the
6            reduced applicable annual incremental goal to set
7            the value for 100% achievement of the goal and
8            shall use the unreduced goal to set the value for
9            125% achievement. The 8 basis point value shall
10            also be modified, as necessary, so that the 200
11            basis points are evenly apportioned among each
12            percentage point value between 100% and 125%
13            achievement.
14                (iii) For the period of January 1, 2026
15            through December 31, 2030, the calculation for
16            determining achievement that is less than 134% but
17            more than 100% of the applicable annual
18            incremental goal shall use the reduced applicable
19            annual incremental goal to set the value for 100%
20            achievement of the goal and shall use the
21            unreduced goal to set the value for 125%
22            achievement. The 6 basis point value shall also be
23            modified, as necessary, so that the 200 basis
24            points are evenly apportioned among each
25            percentage point value between 100% and 134%
26            achievement.

 

 

10200SB1100sam001- 290 -LRB102 04924 SPS 24488 a

1        (9) The utility shall submit the energy savings data
2    to the independent evaluator no later than 30 days after
3    the close of the plan year. The independent evaluator
4    shall determine the cumulative persisting annual savings
5    for a given plan year no later than 120 days after the
6    close of the plan year. The utility shall submit an
7    informational filing to the Commission no later than 160
8    days after the close of the plan year that attaches the
9    independent evaluator's final report identifying the
10    cumulative persisting annual savings for the year and
11    calculates, under paragraph (7) or (8) of this subsection
12    (g), as applicable, any resulting change to the utility's
13    return on equity component of the weighted average cost of
14    capital applicable to the next plan year beginning with
15    the January monthly billing period and extending through
16    the December monthly billing period. However, if the
17    utility recovers the costs incurred under this Section
18    under paragraphs (2) and (3) of subsection (d) of this
19    Section, then the utility shall not be required to submit
20    such informational filing, and shall instead submit the
21    information that would otherwise be included in the
22    informational filing as part of its filing under paragraph
23    (3) of such subsection (d) that is due on or before June 1
24    of each year.
25        For those utilities that must submit the informational
26    filing, the Commission may, on its own motion or by

 

 

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1    petition, initiate an investigation of such filing,
2    provided, however, that the utility's proposed return on
3    equity calculation shall be deemed the final, approved
4    calculation on December 15 of the year in which it is filed
5    unless the Commission enters an order on or before
6    December 15, after notice and hearing, that modifies such
7    calculation consistent with this Section.
8        The adjustments to the return on equity component
9    described in paragraphs (7) and (8) of this subsection (g)
10    shall be applied as described in such paragraphs through a
11    separate tariff mechanism, which shall be filed by the
12    utility under subsections (f) and (g) of this Section.
13    (h) No more than 6% of energy efficiency and
14demand-response program revenue may be allocated for research,
15development, or pilot deployment of new equipment or measures.
16    (i) When practicable, electric utilities shall incorporate
17advanced metering infrastructure data into the planning,
18implementation, and evaluation of energy efficiency measures
19and programs, subject to the data privacy and confidentiality
20protections of applicable law.
21    (j) The independent evaluator shall follow the guidelines
22and use the savings set forth in Commission-approved energy
23efficiency policy manuals and technical reference manuals, as
24each may be updated from time to time. Until such time as
25measure life values for energy efficiency measures implemented
26for low-income households under subsection (c) of this Section

 

 

10200SB1100sam001- 292 -LRB102 04924 SPS 24488 a

1are incorporated into such Commission-approved manuals, the
2low-income measures shall have the same measure life values
3that are established for same measures implemented in
4households that are not low-income households.
5    (k) Notwithstanding any provision of law to the contrary,
6an electric utility subject to the requirements of this
7Section may file a tariff cancelling an automatic adjustment
8clause tariff in effect under this Section or Section 8-103,
9which shall take effect no later than one business day after
10the date such tariff is filed. Thereafter, the utility shall
11be authorized to defer and recover its expenditures incurred
12under this Section through a new tariff authorized under
13subsection (d) of this Section or in the utility's next rate
14case under Article IX or Section 16-108.5 of this Act, with
15interest at an annual rate equal to the utility's weighted
16average cost of capital as approved by the Commission in such
17case. If the utility elects to file a new tariff under
18subsection (d) of this Section, the utility may file the
19tariff within 10 days after June 1, 2017 (the effective date of
20Public Act 99-906), and the cost inputs to such tariff shall be
21based on the projected costs to be incurred by the utility
22during the calendar year in which the new tariff is filed and
23that were not recovered under the tariff that was cancelled as
24provided for in this subsection. Such costs shall include
25those incurred or to be incurred by the utility under its
26multi-year plan approved under subsections (f) and (g) of this

 

 

10200SB1100sam001- 293 -LRB102 04924 SPS 24488 a

1Section, including, but not limited to, projected capital
2investment costs and projected regulatory asset balances with
3correspondingly updated depreciation and amortization reserves
4and expense. The Commission shall, after notice and hearing,
5approve, or approve with modification, such tariff and cost
6inputs no later than 75 days after the utility filed the
7tariff, provided that such approval, or approval with
8modification, shall be consistent with the provisions of this
9Section to the extent they do not conflict with this
10subsection (k). The tariff approved by the Commission shall
11take effect no later than 5 days after the Commission enters
12its order approving the tariff.
13    No later than 60 days after the effective date of the
14tariff cancelling the utility's automatic adjustment clause
15tariff, the utility shall file a reconciliation that
16reconciles the moneys collected under its automatic adjustment
17clause tariff with the costs incurred during the period
18beginning June 1, 2016 and ending on the date that the electric
19utility's automatic adjustment clause tariff was cancelled. In
20the event the reconciliation reflects an under-collection, the
21utility shall recover the costs as specified in this
22subsection (k). If the reconciliation reflects an
23over-collection, the utility shall apply the amount of such
24over-collection as a one-time credit to retail customers'
25bills.
26    (l) For the calendar years covered by a multi-year plan

 

 

10200SB1100sam001- 294 -LRB102 04924 SPS 24488 a

1commencing after December 31, 2017, subsections (a) through
2(j) of this Section do not apply to any retail customers of an
3electric utility that serves more than 3,000,000 retail
4customers in the State and whose total highest 30 minute
5demand was more than 10,000 kilowatts, or any retail customers
6of an electric utility that serves less than 3,000,000 retail
7customers but more than 500,000 retail customers in the State
8and whose total highest 15 minute demand was more than 10,000
9kilowatts. For purposes of this subsection (l), "retail
10customer" has the meaning set forth in Section 16-102 of this
11Act. A determination of whether this subsection is applicable
12to a customer shall be made for each multi-year plan beginning
13after December 31, 2017. The criteria for determining whether
14this subsection (l) is applicable to a retail customer shall
15be based on the 12 consecutive billing periods prior to the
16start of the first year of each such multi-year plan.
17    (m) Notwithstanding the requirements of this Section, as
18part of a proceeding to approve a multi-year plan under
19subsections (f) and (g) of this Section, the Commission shall
20reduce the amount of energy efficiency measures implemented
21for any single year, and whose costs are recovered under
22subsection (d) of this Section, by an amount necessary to
23limit the estimated average net increase due to the cost of the
24measures to no more than
25        (1) 3.5% for each of the 4 years beginning January 1,
26    2018,

 

 

10200SB1100sam001- 295 -LRB102 04924 SPS 24488 a

1        (2) 3.75% for each of the 4 years beginning January 1,
2    2022, and
3        (3) 4% for each of the 5 years beginning January 1,
4    2026,
5of the average amount paid per kilowatthour by residential
6eligible retail customers during calendar year 2015. To
7determine the total amount that may be spent by an electric
8utility in any single year, the applicable percentage of the
9average amount paid per kilowatthour shall be multiplied by
10the total amount of energy delivered by such electric utility
11in the calendar year 2015, adjusted to reflect the proportion
12of the utility's load attributable to customers who are exempt
13from subsections (a) through (j) of this Section under
14subsection (l) of this Section. For purposes of this
15subsection (m), the amount paid per kilowatthour includes,
16without limitation, estimated amounts paid for supply,
17transmission, distribution, surcharges, and add-on taxes. For
18purposes of this Section, "eligible retail customers" shall
19have the meaning set forth in Section 16-111.5 of this Act.
20Once the Commission has approved a plan under subsections (f)
21and (g) of this Section, no subsequent rate impact
22determinations shall be made.
23(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
 
24    (220 ILCS 5/8-106 new)
25    Sec. 8-106. Beneficial Electrification Portfolio Standard.

 

 

10200SB1100sam001- 296 -LRB102 04924 SPS 24488 a

1    (a) It is the policy of the State that electric utilities
2serving more than 3,000,000 retail customers in the State
3should develop and implement beneficial electrification
4portfolios to use and subsidize cost-effective carbon
5reduction measures to reduce carbon dioxide emissions in the
6State.
7    Requiring investment in cost-effective carbon reduction
8measures will reduce direct and indirect costs to consumers by
9decreasing environmental impacts. It also serves the public
10interest to allow electric utilities subject to the
11requirements of this Section to recover costs for reasonably
12and prudently incurred expenditures for carbon reduction
13measures.
14    The potential scope of beneficial electrification measures
15is broad, but transportation electrification and related
16infrastructure should be the primary initial focus.
17    Emissions of carbon dioxide and other source pollutants
18from the transportation sector have, in 2016, surpassed the
19electric generation sector, and constitute a grave threat to
20the health and well-being of citizens of Illinois.
21    Widespread transportation electrification across all
22vehicle types, including light-duty vehicles, medium-duty
23vehicles, and heavy-duty vehicles, is necessary to reduce such
24emissions and to improve air quality, and at the same time
25provide benefits to consumers and optimize the utilization of
26the electric grid.

 

 

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1    The lack of adequate electric vehicle infrastructure,
2including publicly available charging stations, is one of the
3biggest impediments to the further adoption of electric
4vehicles in Illinois.
5    It is the goal of the State to have at least 1,500,000
6internal combustion engine vehicles replaced with electric
7vehicles by 2030.
8    Electric utilities play a central role in enabling vehicle
9market transformation, providing electric vehicle programs and
10associated infrastructure, and delivering electricity.
11    A broad ecosystem of stakeholders must play a critical
12role in advancing beneficial electrification to meet the
13State's carbon, equity, and economic goals, including
14competitive third-party market providers including electric
15vehicle service providers, technology companies, other private
16businesses, local governments, and nonprofits. Together, this
17group can foster innovation at all levels of the State to
18ensure Illinois' place as a national and global leader on
19electrification.
20    Public health, and especially respiratory health issues,
21should be adequately considered in any beneficial
22electrification plan.
23    The needs of low-income households, disproportionately
24impacted communities, and environmental justice communities
25throughout the State, including, but not limited to, rural
26communities, also need to be considered in any beneficial

 

 

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1electrification plan.
2    As used in this Section:
3    "Cost-effective" means that the measures satisfy the total
4resource cost test. The low-income measures described in
5subsection (c) of this Section, as well as those measures
6described in Section 8-107 and 8-108 of this Act, shall not be
7required to meet the total resource cost test.
8    "Carbon reduction measures" means measures that reduce the
9amount of carbon dioxide emitted in order to achieve a given
10end use.
11    "Electric utility" has the meaning given to that term in
12Section 16-102 of the Public Utilities Act.
13    "Total resource cost test" or "TRC test" means a standard
14that is met if, for an investment in carbon reduction
15measures, the benefit-cost ratio is greater than one. The
16benefit-cost ratio is the ratio of the net present value of the
17total benefits of the measure to the net present value of the
18total costs as calculated over the lifetime of the measure. A
19total resource cost test compares the sum of the avoided
20Social Cost of Carbon, reductions in healthcare costs, and
21fuel savings, as well as other quantifiable societal benefits,
22to the sum of all incremental costs of the end-use measure that
23is implemented due to the Beneficial Electrification Portfolio
24Standard (including both utility and participant
25contributions), plus costs to administer, deliver, and
26evaluate the carbon reduction measure, to quantify the net

 

 

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1savings obtained by substituting the carbon reduction measure
2for the baseline measure. The analysis shall take reasonably
3effective steps to seek to quantify societal benefits. As used
4in this Section, the "Social Cost of Carbon" equals $62 per ton
5for the year ending December 31, 2022, which is based on the
6U.S. Interagency Working Group on Social Cost of Carbon's
7price in the August 2016 Technical Update using a 2.5%
8discount rate. For each year of the Beneficial Electrification
9Portfolio Standard commencing after December 31, 2022, the
10Social Cost of Carbon shall be adjusted for inflation for each
11year of the Portfolio at the rate of 2% per annum.
12    (a-5) This Section applies to electric utilities serving
13more than 3,000,000 retail customers in this State.
14    (b) Beginning in 2023, each plan shall be designed to
15achieve the following cumulative persisting annual carbon
16reduction goals through the implementation of carbon reduction
17measures during the applicable year and in prior years:
18        (1) 20,000 cumulative persisting annual tons of
19    avoided carbon for the year ending December 31, 2023;
20        (2) 50,000 cumulative persisting annual tons of
21    avoided carbon for the year ending December 31, 2024;
22        (3) 125,000 cumulative persisting annual tons of
23    avoided carbon for the year ending December 31, 2025;
24        (4) 250,000 cumulative persisting annual tons of
25    avoided carbon for the year ending December 31, 2026;
26        (5) 400,000 cumulative persisting annual tons of

 

 

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1    avoided carbon for the year ending December 31, 2027;
2        (6) 650,000 cumulative persisting annual tons of
3    avoided carbon for the year ending December 31, 2028;
4        (7) 1,100,000 cumulative persisting annual tons of
5    avoided carbon for the year ending December 31, 2029;
6        (8) 1,650,000 cumulative persisting annual tons of
7    avoided carbon for the year ending December 31, 2030;
8        (9) 2,300,000 cumulative persisting annual tons of
9    avoided carbon for the year ending December 31, 2031;
10        (10) 3,000,000 cumulative persisting annual tons of
11    avoided carbon for the year ending December 31, 2032;
12        (11) 4,000,000 cumulative persisting annual tons of
13    avoided carbon for the year ending December 31, 2033; and
14        (12) 5,000,000 cumulative persisting annual tons of
15    avoided carbon for the year ending December 31, 2034.
16    As used in this Section, "cumulative persisting annual
17carbon reduction" and "cumulative persisting annual tons of
18avoided carbon" means the total reduction in carbon emissions
19in a given year from measures installed in that year or in
20previous years, but no earlier than January 1, 2023, that are
21still operational and providing reductions in that year
22because the measures have not yet reached the end of their
23useful lives.
24    (c) Electric utilities shall be responsible for overseeing
25the design, development, and filing of beneficial
26electrification plans with the Commission, plan

 

 

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1implementation, and may, as part of that implementation,
2outsource various aspects of program development and
3implementation. A minimum of 30% of the utility's entire
4portfolio funding level for a given year shall be used to
5implement carbon reduction measures targeted at low-income
6households, disproportionately impacted communities, and
7environmental justice communities, and expenditures to
8implement those measures shall be no less than $30,000,000 per
9year. A minimum of 10% of the utility's entire portfolio
10funding level for a given year shall be used to procure
11cost-effective carbon reduction measures from units of local
12government, municipal corporations, school districts, public
13housing, and community college districts, provided that a
14minimum percentage of available funds shall be used to procure
15carbon reduction measures from public housing and public
16schools, which percentage shall be equal to public housing's
17and public schools' share of public building energy
18consumption.
19    As used in this Section, "low-income households" means
20households whose income does not exceed 80% of the area median
21income, and "environmental justice communities" has the
22meaning set forth in Section 1-56 of the Illinois Power Agency
23Act and defined by the most recent Commission-approved
24Long-Term Renewable Resources Procurement Plan of the Illinois
25Power Agency.
26    The amount of the subsidy paid to a retail customer for a

 

 

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1carbon reduction measure shall equal the avoided Social Cost
2of Carbon as calculated and discounted over the life of the
3measure.
4    (d) Notwithstanding any other provision of law to the
5contrary, a utility providing approved carbon reduction
6measures in the State under this Section shall be permitted to
7recover all reasonable and prudently incurred costs of those
8measures from all retail customers, provided that nothing in
9this subsection (d) permits the double recovery of such costs
10from 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.
19        (2) A utility, alternatively, may recover its costs
20    through a beneficial electrification formula rate approved
21    by the Commission under a filing under subsections (f) and
22    (g) of this Section or under a separate filing, which
23    shall specify the cost components that form the basis of
24    the rate charged to customers with sufficient specificity
25    to operate in a standardized manner and be updated
26    annually with transparent information that reflects the

 

 

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1    utility's actual costs to be recovered during the
2    applicable rate year, which is the period beginning with
3    the first billing day of January and extending through the
4    last billing day of the following December. The beneficial
5    electrification formula rate shall be implemented through
6    a tariff filed with the Commission under subsections (f)
7    and (g) of this Section that is consistent with the
8    provisions of this paragraph (2) and that applies to all
9    delivery services customers. The Commission shall conduct
10    an investigation of the tariff in a manner consistent with
11    the provisions of this paragraph (2), subsections (f) and
12    (g) of this Section, and the provisions of Article IX of
13    this Act to the extent they do not conflict with this
14    paragraph (2). The beneficial electrification formula rate
15    approved by the Commission shall remain in effect at the
16    discretion of the utility and shall do the following:
17            (A) Provide for the recovery of the utility's
18        actual costs incurred under this Section that are
19        prudently incurred and reasonable in amount consistent
20        with Commission practice and law. The sole fact that a
21        cost differs from that incurred in a prior calendar
22        year or that an investment is different from that made
23        in a prior calendar year shall not imply the
24        imprudence or unreasonableness of that cost or
25        investment.
26            (B) Reflect the utility's actual year-end capital

 

 

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1        structure for the applicable calendar year, excluding
2        goodwill, subject to a determination of prudence and
3        reasonableness consistent with Commission practice and
4        law.
5            (C) Include a cost of equity, which shall be
6        calculated as the sum of the following:
7                (i) the average for the applicable calendar
8            year of the monthly average yields of 30-year U.S.
9            Treasury bonds published by the Board of Governors
10            of the Federal Reserve System in its weekly H.15
11            Statistical Release or successor publication; and
12                (ii) 580 basis points.
13            However, if the cost of equity as calculated under
14        this subparagraph (C) is greater than the national
15        average cost of equity for the rate year by 50 basis
16        points or more, then the Illinois Commerce Commission
17        shall include a cost of equity at a rate equal to the
18        national average cost of equity as calculated under
19        this subparagraph (C) plus 50 basis points. For
20        purposes of this paragraph (2), the national average
21        cost of equity for a rate year shall be the simple
22        average of the cost of equity approved in each order of
23        a state regulatory commission, other than the
24        Commission, issued during that rate year that applies
25        to retail electric service provided by an
26        investor-owned public utility company operating in the

 

 

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1        United States. No order shall be excluded from the
2        national average cost of equity calculated under this
3        subparagraph (C) on the grounds that it is subject to
4        rehearing or appeal. If, for any rate year, there are
5        fewer than 15 applicable orders of state regulatory
6        commissions with which to compute the average cost of
7        equity, the Commission shall include in the
8        calculation of the national average the number of
9        state regulatory orders from the prior year or years
10        necessary to reach a total of 15, beginning with the
11        most recently issued and proceeding in reverse
12        chronological order. Notwithstanding anything to the
13        contrary, the Commission shall not be permitted to
14        approve a cost of equity that is more than 100 basis
15        points below the national average cost of equity for
16        the rate year.
17            At such time as the Board of Governors of the
18        Federal Reserve System ceases to include the monthly
19        average yields of 30-year U.S. Treasury bonds in its
20        weekly H.15 Statistical Release or successor
21        publication, the monthly average yields of the U.S.
22        Treasury bonds then having the longest duration
23        published by the Board of Governors in its weekly H.15
24        Statistical Release or successor publication shall
25        instead be used for purposes of this paragraph (2).
26            (D) Permit and set forth protocols, subject to a

 

 

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1        determination of prudence and reasonableness
2        consistent with Commission practice and law, for the
3        following:
4                (i) recovery of incentive compensation expense
5            that is based on the achievement of operational
6            metrics, including metrics related to budget
7            controls, outage duration and frequency, safety,
8            customer service, efficiency and productivity, and
9            environmental compliance; however, this protocol
10            shall not apply if such expense related to costs
11            incurred under this Section is recovered under
12            Article IX or Section 16-108.5 of this Act;
13            incentive compensation expense that is based on
14            net income or an affiliate's earnings per share
15            shall not be recoverable under the beneficial
16            electrification formula rate;
17                (ii) recovery of pension and other
18            post-employment benefits expense, provided that
19            such costs are supported by an actuarial study;
20            however, this protocol shall not apply if such
21            expense related to costs incurred under this
22            Section is recovered under Article IX or Section
23            16 108.5 of this Act;
24                (iii) recovery of existing regulatory assets
25            over the periods previously authorized by the
26            Commission;

 

 

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1                (iv) as described in subsection (e),
2            amortization of costs incurred under this Section;
3            and
4                (v) projected, weather normalized billing
5            determinants for the applicable rate year.
6            (E) Provide for an annual reconciliation, as
7        described in paragraph (3) of this subsection (d),
8        less any deferred taxes related to the reconciliation,
9        with interest at an annual rate of return equal to the
10        utility's weighted average cost of capital, including
11        a revenue conversion factor calculated to recover or
12        refund all additional income taxes that may be payable
13        or receivable as a result of that return, of the
14        beneficial electrification revenue requirement
15        reflected in rates for each calendar year, beginning
16        with the calendar year in which the utility files its
17        beneficial electrification formula rate tariff under
18        this paragraph (2), with what the revenue requirement
19        would have been had the actual cost information for
20        the applicable calendar year been available at the
21        filing date.
22            The utility shall file, together with its tariff,
23        the projected costs to be incurred by the utility
24        during the rate year under the utility's multi-year
25        plan approved under subsections (f) and (g) of this
26        Section, including, but not limited to, the projected

 

 

10200SB1100sam001- 308 -LRB102 04924 SPS 24488 a

1        capital investment costs and projected regulatory
2        asset balances with correspondingly updated
3        depreciation and amortization reserves and expense,
4        that shall populate the beneficial electrification
5        formula rate and set the initial rates under the
6        formula.
7            The Commission shall, as applicable, review the
8        proposed tariff in conjunction with its review of a
9        proposed multi-year plan, as specified in subsections
10        (f) and (g) of this Section. The review shall be based
11        on the same evidentiary standards, including, but not
12        limited to, those concerning the prudence and
13        reasonableness of the costs incurred by the utility,
14        the Commission applies in a hearing to review a filing
15        for a general increase in rates under Article IX of
16        this Act. The initial rates shall take effect
17        beginning with the January monthly billing period
18        following the Commission's approval.
19            The tariff's rate design and cost allocation
20        across customer classes shall be consistent with the
21        utility's tariff in effect pursuant to subsection (d)
22        of Section 8 103B of this Act on the effective date of
23        this amendatory Act of the 102nd General Assembly;
24        however, the Commission may revise the tariff's rate
25        design and cost allocation in subsequent proceedings
26        under paragraph (3) of this subsection (d).

 

 

10200SB1100sam001- 309 -LRB102 04924 SPS 24488 a

1            If the beneficial electrification formula rate is
2        terminated, the then-current rates shall remain in
3        effect until the carbon reduction costs are
4        incorporated into new rates that are set under this
5        subsection (d) or Article IX of this Act, subject to
6        retroactive rate adjustment, with interest, to
7        reconcile rates charged with actual costs.
8        (3) This paragraph (3) applies only to an electric
9    utility that has elected to file a beneficial
10    electrification formula rate under paragraph (2) of this
11    subsection (d). Subsequent to the Commission's issuance of
12    an order approving the utility's beneficial
13    electrification formula rate structure and protocols, and
14    initial rates, the utility shall file, on or before June 1
15    of each year, with the Chief Clerk of the Commission its
16    updated cost inputs to the beneficial electrification
17    formula rate for the applicable rate year and the
18    corresponding new charges. Each such filing shall conform
19    to the following requirements and include the following
20    information:
21            (A) The inputs to the beneficial electrification
22        formula rate for the applicable rate year shall be
23        based on the projected costs to be incurred by the
24        utility during the rate year under the utility's
25        multi-year plan approved under subsections (f) and (g)
26        of this Section, including, but not limited to,

 

 

10200SB1100sam001- 310 -LRB102 04924 SPS 24488 a

1        projected capital investment costs and projected
2        regulatory asset balances with correspondingly updated
3        depreciation and amortization reserves and expense.
4        The filing shall also include a reconciliation of the
5        beneficial electrification revenue requirement that
6        was in effect for the prior rate year (as set by the
7        cost inputs for the prior rate year) with the actual
8        revenue requirement for the prior rate year
9        (determined using a year-end rate base) that uses
10        amounts reflected in the applicable Federal Energy
11        Regulatory Commission (FERC) Form 1 that reports the
12        utility's actual costs for the prior rate year. Any
13        over-collection or under-collection indicated by such
14        reconciliation shall be reflected as a credit against,
15        or recovered as an additional charge to, respectively,
16        with interest calculated at a rate equal to the
17        utility's weighted average cost of capital approved by
18        the Commission for the prior rate year, the charges
19        for the applicable rate year. Such over-collection or
20        under-collection shall be adjusted to remove any
21        deferred taxes related to the reconciliation, for
22        purposes of calculating interest at an annual rate of
23        return equal to the utility's weighted average cost of
24        capital approved by the Commission for the prior rate
25        year, including a revenue conversion factor calculated
26        to recover or refund all additional income taxes that

 

 

10200SB1100sam001- 311 -LRB102 04924 SPS 24488 a

1        may be payable or receivable as a result of that
2        return. Each reconciliation shall be certified by the
3        participating utility in the same manner that FERC
4        Form 1 is certified. The filing shall also include the
5        charge or credit, if any, resulting from the
6        calculation required by subparagraph (E) of paragraph
7        (2) of this subsection (d).
8            Except as provided in paragraph (4) of this
9        subsection (d), and notwithstanding any other
10        provision of law to the contrary, the intent of the
11        reconciliation is to ultimately reconcile both the
12        revenue requirement reflected in rates for each
13        calendar year, beginning with the calendar year in
14        which the utility files its beneficial electrification
15        formula rate tariff under paragraph (2) of this
16        subsection (d), with what the revenue requirement
17        determined using a year-end rate base for the
18        applicable calendar year would have been had the
19        actual cost information for the applicable calendar
20        year been available at the filing date.
21            For purposes of this Section, "FERC Form 1" means
22        the Annual Report of Major Electric Utilities,
23        Licensees and Others that electric utilities are
24        required to file with the Federal Energy Regulatory
25        Commission under the Federal Power Act, Sections 3,
26        4(a), 304 and 209, modified as necessary to be

 

 

10200SB1100sam001- 312 -LRB102 04924 SPS 24488 a

1        consistent with 83 Ill. Adm. Code Part 415 as of May 1,
2        2011. Nothing in this Section is intended to allow
3        costs that are not otherwise recoverable to be
4        recoverable by virtue of inclusion in FERC Form 1.
5            (B) The new charges shall take effect beginning on
6        the first billing day of the following January billing
7        period and remain in effect through the last billing
8        day of the next December billing period regardless of
9        whether the Commission enters upon a hearing under
10        this paragraph (3).
11            (C) The filing shall include relevant and
12        necessary data and documentation for the applicable
13        rate year. Normalization adjustments shall not be
14        required.
15        Within 45 days after the utility files its annual
16    update of cost inputs to the beneficial electrification
17    formula rate, the Commission shall with reasonable notice,
18    initiate a proceeding concerning whether the projected
19    costs to be incurred by the utility and recovered during
20    the applicable rate year, and that are reflected in the
21    inputs to the beneficial electrification formula rate, are
22    consistent with the utility's approved multi-year plan
23    under subsections (f) and (g) of this Section and whether
24    the costs incurred by the utility during the prior rate
25    year were prudent and reasonable. During the course of the
26    proceeding, each objection shall be stated with

 

 

10200SB1100sam001- 313 -LRB102 04924 SPS 24488 a

1    particularity and evidence provided in support thereof,
2    after which the utility shall have the opportunity to
3    rebut the evidence. Discovery shall be allowed consistent
4    with the Commission's Rules of Practice, which Rules of
5    Practice shall be enforced by the Commission or the
6    assigned hearing examiner. The Commission shall apply the
7    same evidentiary standards, including, but not limited to,
8    those concerning the prudence and reasonableness of the
9    costs incurred by the utility, during the proceeding as it
10    would apply in a proceeding to review a filing for a
11    general increase in rates under Article IX of this Act.
12    The Commission shall not, however, have the authority in a
13    proceeding under this paragraph (3) to consider or order
14    any changes to the structure or protocols of the
15    beneficial electrification formula rate approved under
16    paragraph (2) of this subsection (d). In a proceeding
17    under this paragraph (3), the Commission shall enter its
18    order no later than the earlier of 195 days after the
19    utility's filing of its annual update of cost inputs to
20    the beneficial electrification formula rate or December
21    15. The Commission's determinations of the prudence and
22    reasonableness of the costs incurred, and determination of
23    such return on equity calculation, for the applicable
24    calendar year shall be final upon entry of the
25    Commission's order and shall not be subject to reopening,
26    reexamination, or collateral attack in any other

 

 

10200SB1100sam001- 314 -LRB102 04924 SPS 24488 a

1    Commission proceeding, case, docket, order, rule, or
2    regulation; however, nothing in this paragraph (3) shall
3    prohibit a party from petitioning the Commission to rehear
4    or appeal to the courts the order under the provisions of
5    this Act.
6        (4) Notwithstanding the provisions of paragraphs (2)
7    and (3) of this subsection (d), an electric utility shall
8    be authorized to retain funds collected but not spent
9    during a given year for the purpose of using the unspent
10    funds during the subsequent 2-year period. If unspent
11    funds related to a given year still remain after the
12    passage of such 2-year period, then the utility may
13    transfer such funds to one of the following programs: the
14    Public Transportation Electrification Subsidies Program
15    set forth in Section 8-108 of this Act; an electric car
16    sharing program that serves primarily low-income
17    customers; or an electric vehicle program that benefits
18    low-income customers. If the funds are not so transferred
19    or a portion otherwise remains after such transfer, then
20    such funds shall be included, and credited back to
21    customers, in the next annual update filing submitted
22    under paragraph (3) of this subsection (d).
23        If an electric utility elects to retain funds as
24    authorized by this paragraph (4), the utility's tariff and
25    annual update filing under paragraphs (2) and (3) of this
26    subsection (d) shall conform to the provisions of this

 

 

10200SB1100sam001- 315 -LRB102 04924 SPS 24488 a

1    paragraph (4). In addition, the electric utility shall
2    deposit into a separate interest bearing account of a
3    financial institution the retained funds. Any interest
4    earned shall be credited back to retail customers under
5    the reconciliation proceeding provided for in this
6    subsection (d), provided that the electric utility shall
7    first be reimbursed from the interest for the
8    administrative costs that it incurs to administer and
9    manage the account. Any taxes due on the funds in the
10    account, or interest earned on it, will be paid from the
11    account or, if insufficient moneys are available in the
12    account, from the money collected under the tariffed
13    charges authorized by this Section.
14    (e) Beginning on the effective date of this amendatory Act
15of the 102nd General Assembly, a utility subject to this
16Section may elect to defer, as a regulatory asset, up to the
17full amount of its expenditures incurred under this Section
18for each annual period, including, but not limited to, any
19expenditures incurred above the funding level set by
20subsection (f) of this Section for a given year. The total
21expenditures deferred as a regulatory asset in a given year
22shall be amortized and recovered over a period that is equal to
23the weighted average of the carbon reduction measure lives
24implemented for that year that are reflected in the regulatory
25asset. The unamortized balance shall be recognized as of
26December 31 for a given year. The utility shall also earn a

 

 

10200SB1100sam001- 316 -LRB102 04924 SPS 24488 a

1return on the total of the unamortized balances of all of the
2beneficial electrification regulatory assets, less any
3deferred taxes related to those unamortized balances, at an
4annual rate equal to the utility's weighted average cost of
5capital that includes, based on a year-end capital structure,
6the utility's actual cost of debt for the applicable calendar
7year and a cost of equity, which shall be calculated in
8accordance with the calculations set forth in subparagraph (C)
9of paragraph (2) of subsection (d) of this Section. Capital
10investments shall be depreciated and recovered over their
11useful lives consistent with generally accepted accounting
12principles. The weighted average cost of capital shall be
13applied to the capital investment cost balance, less any
14accumulated depreciation and accumulated deferred income
15taxes, as of December 31 for a given year.
16    When an electric utility creates a regulatory asset under
17the provisions of this Section, the costs are recovered over a
18period during which customers also receive a benefit which is
19in the public interest. Accordingly, it is the intent of the
20General Assembly that an electric utility that elects to
21create a regulatory asset under the provisions of this Section
22shall recover all of the associated costs as set forth in this
23Section. After the Commission has approved the prudence and
24reasonableness of the costs that comprise the regulatory
25asset, the electric utility shall be permitted to recover all
26such costs, and the value and recoverability through rates of

 

 

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1the associated regulatory asset shall not be limited, altered,
2impaired, or reduced.
3    (f) By no later than March 31, 2022, each electric utility
4subject to this Section shall file a beneficial
5electrification plan with the Commission that is designed to
6achieve the carbon reduction standards for the next applicable
7multi-year period beginning January 1 of the year following
8the filing, according to the schedule set forth in paragraphs
9(1) through (3) of this subsection (f).
10        (1) No later than March 31, 2022, each electric
11    utility shall file a 4-year beneficial electrification
12    plan commencing on January 1, 2023, that is designed to
13    achieve the cumulative persisting annual carbon reduction
14    goals specified in paragraphs (1) through (4) of
15    subsection (b) of this Section through implementation of
16    carbon reduction measures. Cost-effective subsidies shall
17    be the primary means of implementation of the plan. The
18    utility, in developing such a plan, shall conduct a
19    stakeholder input process. The utility, in developing such
20    a plan, shall consider, but not be limited to, the
21    following subjects: transportation electrification
22    measures including, but not limited to, electric vehicle
23    and electric vehicle infrastructure and services market
24    development; end-use cases such as vehicle fleets,
25    transportation network companies, residential,
26    multifamily dwelling, low-income households,

 

 

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1    environmental justice communities, public transportation
2    (including school buses), and level 2 and direct current
3    fast charging sites; flexibility mechanisms such as
4    banking; infrastructure interoperability and open
5    protocols; and education and outreach.
6        (2) No later than March 1, 2026, each electric utility
7    shall file a 4-year beneficial electrification plan
8    commencing on January 1, 2027, that is designed to achieve
9    the cumulative persisting annual carbon reduction goals
10    specified in paragraphs (5) through (8) of subsection (b)
11    of this Section through implementation of carbon reduction
12    measures.
13        (3) No later than March 1, 2030, each electric utility
14    shall file a 4-year beneficial electrification plan
15    commencing on January 1, 2031, that is designed to achieve
16    the cumulative persisting annual carbon reduction goals
17    specified in paragraphs (9) through (12) of subsection (b)
18    of this Section through implementation of carbon reduction
19    measures.
20    Each utility's plan shall set forth the utility's
21proposals to meet the carbon reduction standards identified in
22subsection (b), taking into account the unique circumstances
23of the utility's service territory. For those plans commencing
24on January 1, 2023, the Commission shall seek public comment
25and comments of other applicable State agencies on the
26utility's plan and shall issue an order approving or modifying

 

 

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1each plan no later than October 31, 2022. The electric utility
2shall bear the burden of proof that its plan complies with this
3Section in such Commission review. The Commission, in making
4its determination on the utility's plan, shall consider, along
5with all other applicable factors and principles, the prudence
6and reasonability of the design and likely effectiveness of
7the plan to meet the cumulative persisting annual carbon
8reduction goals of subsection (b) of this Section; the
9reliability, resilience, safety, and use (including
10optimization of use) of the distribution grid; reliability and
11resilience needs of customers, electric vehicle
12electrification infrastructure, and electric vehicle service
13providers; economic development benefits of measures, such as
14job creation; and the needs of low-income households,
15disproportionately impacted communities and environmental
16justice communities throughout the State, including, but not
17limited to, rural communities.
18    For those plans commencing after December 31, 2026, the
19Commission shall seek public comment on each utility's plan,
20and shall issue an order approving, modifying, or disapproving
21each plan within 6 months after its submission. If the
22Commission disapproves a plan, the Commission shall, within 30
23days, describe in detail the reasons for the disapproval and
24describe a path by which the utility may file a revised draft
25of the plan to address the Commission's concerns
26satisfactorily.

 

 

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1    (g) In submitting proposed plans and funding levels under
2subsection (f) of this Section to meet the carbon reduction
3goals identified in subsection (b), the utility shall:
4        (1) Demonstrate that its proposed carbon reduction
5    measures will achieve the applicable requirements that are
6    identified in subsection (b) of this Section.
7        (2) Rank the proposed carbon reduction measures based
8    on their total resource cost test benefit-cost ratio
9    values.
10        (3) Demonstrate that its overall portfolio of
11    measures, not including low-income programs described in
12    subsection (c) of this Section and in Sections 8-107 and 8
13    108 of this Act, is cost-effective using the total
14    resource cost test and represents a diverse cross-section
15    of opportunities for customers of all rate classes to
16    participate in the programs. Individual measures need not
17    be cost-effective. The low-income measures described in
18    subsection (c) of this Section, as well as those described
19    in Section 8 107 and 8-108 of this Act, shall not be
20    required to meet the total resource cost test.
21        (4) Be authorized, at its election, to include a
22    proposed or revised cost-recovery tariff mechanism, as
23    provided for under subsection (d) of this Section, to fund
24    the proposed carbon reduction measures and to ensure the
25    recovery of the prudently and reasonably incurred costs of
26    Commission-approved programs.

 

 

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1    (h) No more than 6% of beneficial electrification program
2revenue may be allocated for research, development, or pilot
3deployment of new equipment or measures.
4    (i) When practicable, electric utilities shall incorporate
5advanced metering infrastructure data into the planning,
6implementation, and evaluation of carbon reduction measures
7and programs, subject to the data privacy and confidentiality
8protections of applicable law.
9    (j)(1) Definitions. For purposes of this subsection (j):
10        (A) "Construction" means any constructing, altering,
11    reconstructing, repairing, rehabilitating, refinishing,
12    refurbishing, remodeling, remediating, renovating, custom
13    fabricating, maintaining, securing, landscaping,
14    improving, drilling, testing, moving, wrecking, painting,
15    decorating, demolishing, and adding to or subtracting from
16    any building, structure, highway, roadway, street, bridge,
17    alley, sewer, ditch, water works, parking facility,
18    railroad, excavation or other structure, project,
19    development, other real improvement, or any part thereof,
20    whether or not the performance of the work herein
21    described involves the addition to, or fabrication into,
22    any structure, project, development, real property or
23    improvement herein described.
24        (B) "Construction Employee" means persons performing
25    construction.
26        (C) "Subsidized provider" means a participant in a

 

 

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1    measure or program offered under an approved beneficial
2    electrification plan that engages in construction in the
3    course of the measure or program. For purposes of this
4    subsection (j), a "measure or program offered under an
5    approved beneficial electrification plan" includes
6    measures and programs offered under this Section and
7    Sections 8-107 and 8-108 of this Act pursuant to a plan
8    approved under this Section, and electric vehicle charging
9    station programs offered under a plan approved pursuant to
10    Section 8-218 of this Act.
11    (2) All construction performed by a subsidized provider in
12the course of a measure or program offered under an approved
13beneficial electrification plan shall be subject to the
14requirements for public works in accordance with the Illinois
15Prevailing Wage Act and as set forth in this subsection (j).
16    (3) Each subsidized provider shall require that all
17construction performed by the provider, its contractors, or
18its subcontractors in the course of a measure or program
19offered under an approved beneficial electrification plan is
20performed by construction employees receiving an amount for
21that work equal to or greater than the general prevailing rate
22of hourly wages and benefits, as that term is defined in
23Section 3 of the Illinois Prevailing Wage Act.
24    Each subsidized provider shall, and shall require its
25contractors or subcontractors that perform construction in the
26course of a measure or program offered under an approved

 

 

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1beneficial electrification plan to:
2        (A) make and keep, for a period of not less than 5
3    years from the date of the last payment on a contract or
4    subcontract for construction, records of all construction
5    employees employed by them for work on or within the
6    subsidized facility; the records shall include each
7    employee's name, address, race, gender, telephone number
8    when available, if applicable years of residency in
9    Illinois, classification or classifications of labor, the
10    rate of hourly wages paid in each pay period for work at
11    the subsidized facility, the number of hours worked each
12    day, and the starting and ending times of work each day, at
13    the subsidized facility; and
14        (B) no later than the fifteenth day of each calendar
15    month file a certified payroll for work at the subsidized
16    facility for the immediately preceding month with the
17    Department of Labor and provide an informational copy to
18    the Commission.
19    (4) Each subsidized provider shall require any contractors
20and subcontractors performing construction in the course of a
21measure or program offered under an approved beneficial
22electrification plan to comply with the responsible bidder
23requirements of Section 30-22 of the Illinois Procurement
24Code.
25    (5) A subsidized provider shall require any contractors
26and subcontractors performing a construction project in the

 

 

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1course of a measure or program offered under an approved
2beneficial electrification plan to enter into a project labor
3agreement with the building and construction trades council or
4relevant labor organization with geographic jurisdiction over
5the location of the project.
6    (6)(A) Each subsidized provider shall participate in an
7apprenticeship program, registered with and recognized by the
8United States Department of Labor, related to all construction
9in the course of a measure or program offered under an approved
10beneficial electrification plan. Each subsidized provider
11shall additionally require its contractors or subcontractors
12that perform construction in the course of a measure or
13program offered under an approved beneficial electrification
14plan to participate in such an apprenticeship program related
15to all construction at that facility.
16    (B) The apprenticeship program shall have a goal of that
17apprentices will perform the lesser of 10% of the total labor
18hours actually worked in each prevailing wage classification
19or 10% of the estimated labor hours in each prevailing wage
20classification.
21    (C) The Commission may reduce or waive the goals set forth
22in subparagraph (B) of this paragraph (6) before or during the
23term of the contract under this Section if the Commission,
24after public hearing, finds that insufficient apprentices are
25available or the reasonable and necessary requirements of the
26contract or subcontract do not allow the goal to be met.

 

 

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1    (D) Each supplier shall submit, and shall require
2contractors and subcontractors to submit, a certification to
3the Department of Labor that such entity has either met the
4apprentice labor hours goal set forth in subparagraph (B) of
5this paragraph (6) or received a reduction or waiver pursuant
6to subparagraph (C) of this paragraph (6).
7    (7) Contractors and subcontractors of subsidized providers
8are subject to the rules and regulations established by the
9Department of Commerce and Economic Opportunity in accordance
10with Section 20-15 of the Illinois Works Jobs Program Act for
11construction at subsidized facilities.
12    (8)(A) Workforce Diversity. The Commission shall require
13each subsidized provider to report monthly on the diversity of
14its workforce as related to the applicable measure or program
15offered under an approved beneficial electrification plan. The
16report shall also present the diversity of the community in
17which a subsidized provider is located and shall outline the
18efforts the provider is taking to achieve a workforce that
19reflects the diversity of the community. If a provider fails
20to meet or maintain compliance with the reporting requirements
21of this subparagraph (A) and subparagraph (A) of paragraph (3)
22of this subsection (j) the provider is not eligible to receive
23payment during the period of noncompliance. The Commission
24shall notify the utility, at such time, that the supplier is
25not eligible to receive payment. Contracts entered into
26pursuant this Section, Sections 8-107 and 8-108 of this Act,

 

 

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1and electric vehicle charging station programs offered under a
2plan approved pursuant to Section 8-218 of this Act shall
3reflect that payments shall be suspended upon any
4noncompliance notice from the Commission until the Commission
5notifies the utility that the period of noncompliance has
6ended.
7    (B) Subsidized providers shall strive with respect to any
8measure or program offered under an approved beneficial
9electrification plan to achieve a workforce at that facility
10that reflects the diversity of the community in which such
11facility is located. In each reporting period, the supplier
12shall outline the efforts it is taking to achieve a workforce
13that reflects the diversity of the community.
14    (9) Where not otherwise prohibited by applicable law, each
15subsidized provider shall, with respect to such employees
16assigned to work on a measure or program offered under an
17approved beneficial electrification plan who are not otherwise
18members of an existing bargaining unit cognizable under the
19National Labor Relations Act, agree to labor neutrality and
20card check procedures with any union that seeks to represent
21such employees. The provider shall also only use on-site
22contractors or subcontractors who agree to be bound by similar
23provisions, if requested by any union that seeks to represent
24the on-site contractor or subcontractor's employees who are
25assigned to work on the measure or program offered under an
26approved beneficial electrification plan.

 

 

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1    (10) The requirements of this subsection (j) of this
2Section shall be construed to avoid preemption under federal
3law. The primary purpose of this Section is to advance the
4State's clean energy goals. Accordingly, the invalidity of any
5provision in this subsection (j) shall not affect the validity
6of the remaining provisions in this Section.
7    (11) To the extent feasible and consistent with State and
8federal law, the implementation of this Section should provide
9opportunities for all segments of the population and workforce
10to participate, including minority-owned, female-owned,
11veteran-owned, and disability-owned business enterprises, and
12shall not, consistent with State and federal law, discriminate
13based on race or socioeconomic status.
 
14    (220 ILCS 5/8-107 new)
15    Sec. 8-107. Supplemental Low-Income Transportation
16Electrification Subsidy Program.
17    (a) The General Assembly finds that the transportation
18sector is the leading source of carbon pollution in Illinois
19and is responsible for roughly one-third of all carbon
20emissions in the State. The General Assembly further finds
21that the provisions of this amendatory Act of the 102nd
22General Assembly will transform the Illinois transportation
23sector by subsidizing electrification and drive the State
24toward a carbon-free future. The General Assembly also finds
25and declares that these benefits should be accessible to all

 

 

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1citizens of this State, and therefore authorizes electric
2utilities to offer to eligible low-income households the
3transportation electrification subsidies described in this
4Section.
5    For purposes of this Section, "low-income household" shall
6have the meaning set forth in Section 8-106 of this Act.
7    (b) Electric utilities subject to the requirements of
8Section 8-106 of this Act shall offer the following subsidies
9to low-income households during each year of the beneficial
10electrification portfolio standard mandated by Section 8-106
11of this Act:
12        (1) a subsidy for the purchase of a new or pre-owned
13    electric vehicle or new or pre-owned hybrid vehicle that
14    is powered by both electricity and gasoline; and
15        (2) a subsidy for a pre-owned internal combustion
16    engine vehicle propelled by gasoline or diesel fuel that
17    is turned in at the time of the purchase of a vehicle
18    described in paragraph (1) of this subsection (b) that
19    will also receive a subsidy pursuant to such paragraph
20    (1).
21    The amount of each subsidy identified in this subsection
22(b) shall be equal to the avoided social cost of carbon
23associated with the vehicle that is the subject of the
24subsidy, discounted over the life of the vehicle, and must be
25issued to a retail customer of the utility. To be eligible for
26a subsidy under paragraph (2) of this subsection (b), the

 

 

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1vehicle to be turned in must be registered to the same retail
2customer that is purchasing a vehicle and receiving a subsidy
3under paragraph (1) of this subsection (b).
4    (c)(1) An electric utility subject to the requirements of
5this Section shall include its proposal for implementing the
6requirements of this Section, including, but not limited to,
7its methodology or methodologies for calculating the subsidies
8described in paragraphs (1) and (2) of subsection (b) of this
9Section, as part of its proposed beneficial electrification
10plan submitted pursuant to Section 8-106 of this Act. For each
11year of such a plan, the electric utility shall be authorized
12to issue subsidies under this Section in an amount that is
13equal to up to 20% of the funds allocated under the plan during
14that year for subsidies associated with new or pre-owned
15electric vehicles and new or pre-owned hybrid vehicles powered
16by both electricity and gasoline. The utility's administrative
17and implementation costs incurred under this Section shall not
18be subject to or included in such 20% limitation, and shall be
19recovered pursuant to subsection (d) of this Section.
20    (2) If the electric utility did not issue the maximum
21amount of subsidies for a given year, as calculated under
22paragraph (1) of this subsection (c), then the utility shall
23be authorized to use the unspent funds during the subsequent
242-year period for purposes of issuing additional subsidies. If
25the unspent funds related to a given year still remain after
26the passage of such 2-year period, then the utility may

 

 

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1transfer such funds to one of the following programs: the
2Public Transportation Electrification Program set forth in
3Section 8-108 of this Act; an electric car sharing program
4that serves primarily low-income customers; or an electric
5vehicle program that benefits low-income customers. The
6application of unspent funds during a future year shall not
7reduce the maximum amount of subsidies that may be issued for
8such year, as calculated under paragraph (1) of this
9subsection (c), or otherwise limit the utility's ability to
10issue subsidies in an amount equal to the maximum amount
11calculated under such paragraph (1) notwithstanding whether
12unspent funds are also available to issue additional
13subsidies.
14    (d) An electric utility subject to the requirements of
15this Section shall be permitted, under subsection (e) of
16Section 8-106 of this Act, to defer, as a regulatory asset, all
17of the costs it incurs under this Section. The utility shall be
18permitted to recover such costs through the cost-recovery
19tariff established under subsection (d) of Section 8-106 of
20this Act.
21    (e) To the extent feasible and consistent with State and
22federal law, the implementation of this Section should provide
23opportunities for all segments of the population and workforce
24to participate, including minority-owned, female-owned,
25veteran-owned, and disability-owned business enterprises, and
26shall not, consistent with State and federal law, discriminate

 

 

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1based on race or socioeconomic status.
 
2    (220 ILCS 5/8-108 new)
3    Sec. 8-108. Public Transportation Electrification Subsidy
4Program.
5    (a) Electric utilities subject to the requirements of
6Section 8-106 of this Act shall also offer subsidies to
7governmental entity retail customers for their purchase of
8all-electric buses that provide service on routes primarily
9serving low-income households or environmental justice
10communities. The amount of the subsidy for each all-electric
11bus shall be $300,000 and may be applied toward the purchase
12price of the bus, costs associated with the purchase,
13installation, and interconnection of electric vehicle charging
14station infrastructure, or costs associated with the ownership
15or operation of such all-electric bus or such electric vehicle
16charging station infrastructure. Each electric utility subject
17to the requirements of this Section shall issue a maximum
18total of $150,000,000 in such subsidies during a 5-year period
19commencing on January 1, 2023, and the program shall be
20designed to issue, on average, $30,000,000 in subsidies during
21each year of the 5-year period. The utility's administrative
22and implementation costs incurred under this Section shall not
23be subject to or included in this maximum total amount and
24shall be recovered pursuant to subsection (c) of this Section.
25    As used in this Section:

 

 

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1    "Governmental entity" includes municipalities and units of
2local government, as defined in Section 1 of Article VII of the
3Illinois Constitution, and school districts, as that term is
4used in the School Code.
5    "Low-income households" has the meaning set forth in
6Section 8-106 of this Act.
7    "Environmental justice communities" has the meaning given
8that term in Section 1-56 of the Illinois Power Agency Act and
9the most recent Commission-approved long-term renewable
10resources procurement plans of the Illinois Power Agency.
11    (b) An electric utility subject to the requirements of
12this Section shall include its proposal for implementing the
13requirements of this Section as part of each proposed
14beneficial electrification plan submitted pursuant to Section
158-106 that will be in effect during the 5-year period that the
16public transportation electrification program described in
17this Section will be in effect.
18    (c) An electric utility subject to the requirements of
19this Section shall be permitted, under subsection (e) of
20Section 8-106 of this Act, to defer, as a regulatory asset, all
21of the costs it incurs under this Section, and the costs shall
22be amortized over a 10-year period. The utility shall be
23permitted to recover such costs through the cost-recovery
24tariff established under subsection (d) of Section 8-106 of
25this Act.
26    (d) To the extent feasible and consistent with State and

 

 

10200SB1100sam001- 333 -LRB102 04924 SPS 24488 a

1federal law, the implementation of this Section should provide
2opportunities for all segments of the population and workforce
3to participate, including minority-owned, female-owned,
4veteran-owned, and disability-owned business enterprises, and
5shall not, consistent with State and federal law, discriminate
6based on race or socioeconomic status.
 
7    (220 ILCS 5/8-218 new)
8    Sec. 8-218. Clean Energy Integrated Distribution Plan.
9    (a) The General Assembly finds and declares that the
10citizens and businesses of this State of Illinois would be
11well served by the development of electric vehicle charging
12infrastructure and other investments in distribution
13infrastructure in this State, which would bring economic
14benefits and environmental benefits and further expand access
15to electric vehicle charging infrastructure and other
16distribution system upgrades at an affordable cost to Illinois
17residents. To that end, the General Assembly seeks to
18encourage efficient and cost-effective development of and
19investment in electric vehicle charging infrastructure and
20identification of investment opportunities on the utility
21distribution system. Accordingly, the General Assembly finds
22that, notwithstanding other provisions of this Act to the
23contrary, the State of Illinois would be well served by
24prudent and reasonable electric utility investments in, and
25ownership, management and operation of, energy storage

 

 

10200SB1100sam001- 334 -LRB102 04924 SPS 24488 a

1facilities, electric vehicle charging infrastructure, and
2other potential distribution system upgrades.
3    (b) In this Section:
4    "Electric utility" has the meaning given to that term in
5Section 16-102 of this Act.
6    "Electric vehicle charging station" has the meaning given
7to that term in 83 Ill. Adm. Code 469.10.
8    "Governmental entity" has the meaning given to that term
9in Section 1-5 of the State Officials and Employees Ethics
10Act.
11    "Interconnection equipment" means a group of components or
12an integrated system that connects an electric vehicle
13charging station with the electric utility's distribution
14system. Interconnection equipment also includes make-ready
15investments, which include, but are not limited to,
16investments in (i) all interface equipment, including
17switchgear, protective devices, inverters or other interface
18devices required to connect the electric vehicle charging
19station to the electric utility's distribution system, (ii)
20all trenching, wiring, and paneling required to connect the
21customer's meter to the electric vehicle charging station, and
22(iii) the foundation and insulating materials for the electric
23vehicle charging station charging infrastructure.
24Interconnection equipment may be installed as part of an
25integrated equipment package that includes an electric vehicle
26charging station.

 

 

10200SB1100sam001- 335 -LRB102 04924 SPS 24488 a

1    "Interconnection facilities" means facilities and
2equipment required by the electric utility to accommodate the
3interconnection of an electric vehicle charging station.
4Collectively, interconnection facilities include all
5facilities and equipment between the electric vehicle charging
6station's interconnection equipment and the point of
7interconnection, including any modifications, additions, or
8upgrades necessary to physically and electrically interconnect
9the electric vehicle charging station to the electric
10distribution system. Interconnection facilities are sole use
11facilities and do not include system upgrades.
12    (c) As part of its Clean Energy Integrated Distribution
13Plan submitted pursuant to subsection (f) of this Section, an
14electric utility that serves more than 500,000 retail
15customers in this State that plans for, constructs, installs,
16controls, owns, manages, or operates energy storage facilities
17for the primary purpose of facilitating stable and reliable
18distribution service must include a proposed mechanism, to be
19incorporated within the utility's delivery services rates, to
20credit the monetary value of power and energy stored by such
21energy storage facilities against the delivery services
22requirement. Nothing in this Section is intended to alter or
23limit an electric utility's ability to continue to (i)
24undertake the activities related to energy storage facilities
25that are described in this subsection (c) and (ii) recover its
26reasonable and prudently incurred costs for those activities,

 

 

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1as distribution assets, through the electric utility's rates
2for delivery service established pursuant to Article IX or
3Article XVI of this Act.
4    (d) Without obtaining any approvals from the Commission,
5other than as required under this Section, or any other
6agency, including, but not limited to, approvals otherwise
7required under Section 8-406 of this Act, regardless of
8whether any such approval would otherwise be required, an
9electric utility that serves more than 500,000 retail
10customers in this State is authorized to, but is not required
11to, plan for, construct, install, control, own, manage, or
12operate electric vehicle charging infrastructure, including,
13but not limited to, electric vehicle charging stations within
14their service territories. Such an electric utility may
15construct electric vehicle charging infrastructure on private
16property or publicly owned property in a manner consistent
17with this subsection (d) and subsection (f) of this Section,
18as applicable; however, the Commission may not authorize an
19electric utility under Section 8-509 of this Act to acquire
20property rights by eminent domain for the construction of any
21electric vehicle charging station. Notwithstanding anything to
22the contrary, it is the intent of this subsection (d) and
23applicable provisions of subsection (f) of this Section to
24develop a robust market for charging stations in the State
25that provides a wide range of providers and options for
26consumers. While it is critical that electric utilities

 

 

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1facilitate the development of the market, it is not the intent
2of this subsection (d) and such applicable provisions of
3subsection (f) that utilities will generally need to provide
4charging stations or charging services, except in those
5limited areas where the market fails to develop.
6    An electric utility shall be allowed to recover all
7reasonable and prudent costs associated with investment in the
8electric vehicle charging infrastructure, including, but not
9limited to, costs to plan for, construct, install, control,
10own, manage, or operate under this subsection (d) and, as
11applicable, subsection (f) of this Section through the
12applicable provisions of this Article VIII, Article IX or
13Article XVI of this Act.
14    Notwithstanding any other provision of this Act to the
15contrary, such electric utility shall be permitted to recover
16all reasonable and prudent costs incurred under this
17subsection (d) and applicable provisions of subsection (f) of
18this Section, including, but not limited to, any costs
19incurred to make any location ready for installation and
20connection of an electric vehicle charging station to the
21distribution system; the costs incurred to provide the rebates
22identified in a plan filed pursuant to subsection (f) of this
23Section; the costs incurred to undertake the education and
24engagement activities authorized under this subsection (d) and
25applicable provisions of subsection (f) of this Section; and
26other costs incurred by the utility to comply with and

 

 

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1implement the requirements of this subsection (d) and
2applicable provisions of subsection (f) of this Section,
3including any amounts that reasonably exceed any estimates
4provided as part of the plan filed pursuant to subsection (f)
5of this Section.
6    An electric utility that serves more than 500,000 retail
7customers in this State is authorized to recover any costs
8identified in this subsection (d), including any costs to
9implement any plan approved by the Commission pursuant to
10subsections (f) and (g) of this Section, by way of a tariff or
11tariffs approved by the Commission, consistent with the
12following provisions:
13        (1) An electric utility subject to this Section shall
14    be permitted to recover all reasonable and prudently
15    incurred costs incurred to make any location identified
16    pursuant to this subsection (d) and subsection (f) of this
17    Section ready for installation and connection of an
18    electric vehicle charging station to the distribution
19    system through its delivery service rates. Allowances for
20    interconnection equipment and interconnection facilities,
21    up to and including $1,500 per kilowatt of connected
22    electric vehicle charging station equipment shall be
23    deemed reasonable. For purposes of implementing programs
24    pursuant to this subsection (d) and applicable provisions
25    of subsection (f) of this Section, for each such program,
26    the utility shall be required to provide and install all

 

 

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1    interconnection equipment and interconnection facilities
2    located on the utility side of the meter and may, at its
3    sole discretion, provide and install the interconnection
4    equipment and interconnection facilities located on the
5    customer side of the meter. Nothing in this Section shall
6    limit the Commission's authority to authorize higher
7    allowances.
8        (2) Beginning on the effective date of this amendatory
9    Act of this 102nd General Assembly, an electric utility
10    that serves more than 500,000 retail customers in this
11    State shall have authority to defer up to the full amount
12    of its costs incurred under this subsection (d) and
13    applicable provisions of subsection (f) of this Section as
14    a regulatory asset to be amortized over a 15-year period.
15    The unamortized balance shall be recognized as of December
16    31 for a given year. The utility shall also earn a return
17    on the total of the unamortized balance of the regulatory
18    asset authorized under this subsection (d), less any
19    deferred taxes related to the unamortized balance, at an
20    annual rate equal to the utility's weighted average cost
21    of capital that includes, based on a year-end capital
22    structure, the utility's actual cost of debt for the
23    applicable calendar year and a cost of equity, which shall
24    be determined using the cost of equity approved in the
25    most recent general rate case under Section 9-201 of this
26    Act, provided that the common equity ratio shall not

 

 

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1    exceed the common equity ratio approved in the most recent
2    general rate case under Section 9-201, and the actual cost
3    of capital structure components other than common equity,
4    and shall calculate the amount of any over-collection or
5    under-collection for such period.
6        (3) It is the intent of the General Assembly that an
7    electric utility that elects to create a regulatory asset
8    under this subsection (d) shall recover all of the
9    associated costs, including, but not limited to, its cost
10    of capital as set forth in this subsection (d). After the
11    Commission has approved, as set forth in this Section, the
12    prudence and reasonableness of the costs that comprise the
13    regulatory asset, the electric utility shall be permitted
14    to recover all such costs, and the value and
15    recoverability through rates of the associated regulatory
16    asset shall not be limited, altered, impaired, or reduced.
17        (4) Notwithstanding paragraph (2) of this subsection
18    (d), an electric utility that serves more than 500,000
19    retail customers in this State may, at its election,
20    recover some or all of the costs it incurs under this
21    subsection (d) and applicable provisions of subsection (f)
22    of this Section as part of a filing for a general increase
23    in rates under Article IX of this Act, as part of an annual
24    filing to update a performance-based formula rate under
25    subsection (d) of Section 16-108.5 of this Act or
26    subsection (d) of Section 8-103B, or through an automatic

 

 

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1    adjustment clause tariff; provided that nothing in this
2    paragraph (4) permits the double recovery of such costs
3    from customers. Such costs shall be allocated across all
4    classes of retail customers in proportion to delivery
5    service revenue requirement attributed to a class. If the
6    electric utility elects to recover the costs it incurs
7    under this subsection (d) through an automatic adjustment
8    clause tariff, the utility may file its proposed tariff
9    together with the plan it files under subsection (f) of
10    this Section or at a later time. The proposed tariff shall
11    provide for an annual reconciliation, less any deferred
12    taxes related to the reconciliation, with interest at an
13    annual rate of return equal to the utility's weighted
14    average cost of capital as calculated under paragraph (2)
15    of this subsection (d), including a revenue conversion
16    factor calculated to recover or refund all additional
17    income taxes that may be payable or receivable as a result
18    of that return, of the revenue requirement reflected in
19    rates for each calendar year, beginning with the calendar
20    year in which the utility files its automatic adjustment
21    clause tariff under this subsection (d), with what the
22    revenue requirement would have been had the actual cost
23    information for the applicable calendar year been
24    available at the filing date. The tariff may permit
25    recovery of costs through a single cents-per-kilowatthour
26    charge applicable to each retail class. The Commission

 

 

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1    shall review the proposed tariff and may make changes to
2    the tariff that are consistent with this Section and with
3    the Commission's authority under Article IX of this Act,
4    subject to notice and hearing, as required. Following
5    notice and hearing, as required, the Commission shall
6    issue an order approving, or approving with modification,
7    such tariff no later than 240 days after the electric
8    utility files its tariff.
9Any electric vehicle charging infrastructure, including, but
10not limited to, an electric vehicle charging station,
11constructed, installed, controlled, owned, managed, or
12operated by an electric utility pursuant to this subsection
13(d) shall be treated as jurisdictional distribution plant
14assets for ratemaking purposes. The investment in, and the
15costs to construct, install, control, own, manage, or operate,
16electric vehicle charging infrastructure owned by the electric
17utility shall be fully recovered in delivery service rates.
18The electric utility shall charge market-based service
19charges, pursuant to a tariff on file with the Commission, and
20any revenue from service charges for use of electric vehicle
21charging stations shall be credited to distribution customers
22in the applicable ratemaking process.
23    (e) No later than 150 days after the effective date of this
24amendatory Act of the 102nd General Assembly, each electric
25utility that serves more than 500,000 retail customers in the
26State shall file a petition with the Commission requesting

 

 

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1approval of a tariff that sets forth the terms and conditions
2of a program to be offered to the utility's retail customers
3that are governmental entities. Each such utility shall offer
4a program that provides and installs some or all of the
5interconnection equipment and interconnection facilities for
6electric vehicle charging stations owned or operated by such
7governmental entities that are located on the premises, or
8within the corporate limits, of the governmental entity, as
9applicable. For each such program the utility shall be
10required to provide and install all interconnection equipment
11and interconnection facilities located on the utility side of
12the meter and may, at its sole discretion, provide and install
13the interconnection equipment and interconnection facilities
14located on the customer side of the meter. Allowances for
15interconnection equipment and interconnection facilities up to
16and including $2,500 per kilowatt of connected electric
17vehicle charging station equipment shall be deemed reasonable.
18Nothing in this Section shall limit the Commission's authority
19to authorize higher allowances. Interconnection facilities
20under the program, and all installations, shall be subject to
21the installer certification requirements of subsection (d) of
22Section 16-128A of this Act and Part 469 of Title 83 of the
23Illinois Administrative Code.
24    The Commission shall review the proposed tariff submitted
25pursuant to this subsection (e) and may make changes to the
26tariff that are consistent with this subsection (e) and with

 

 

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1the Commission's authority under Article IX of this Act,
2subject to notice and hearing. Following notice and hearing,
3the Commission shall issue an order approving, or approving
4with modification, such tariff no later than 150 days after
5the utility files its petition and tariff. No later than 60
6days after the Commission enters an order, or order on
7rehearing, whichever is later, approving an electric utility's
8proposed tariff under this subsection (e), the electric
9utility shall provide notice to its governmental entity retail
10customers of the electric vehicle charging station
11installation services program under this subsection (e).
12    (f) An electric utility that serves more than 500,000
13retail customers in this State shall file with the Commission
14a Clean Energy Integrated Distribution Plan, the purpose of
15which shall be to identify the planned investment authorized
16by this Section to be made in energy storage facilities,
17electric vehicle charging infrastructure, and other potential
18investments in utility distribution infrastructure in the
19electric utility's service territory during a 5-calendar-year
20period commencing on the calendar year following the
21Commission's approval of the Clean Energy Integrated
22Distribution Plan. An electric utility subject to this
23subsection (f) shall file its initial Clean Energy Integrated
24Distribution Plan within 150 days of the electric utility's
25initial Article IX filing pursuant to Section 9-201.1. Clean
26Energy Integrated Distribution Plans shall be subject to

 

 

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1Commission review and approval pursuant to the provisions of
2subsection (g) of this Section. The electric utility shall be
3responsible for the development and submission its Clean
4Energy Integrated Distribution Plan to the Commission, which
5shall conform to the provisions of this subsection (f):
6        (1) An electric utility's Clean Energy Integrated
7    Distribution Plan shall include:
8            (A) An electric vehicle charging infrastructure
9        deployment and charging facility rebate plan, the
10        purpose of which shall be to encourage the adoption of
11        electric vehicles in this State. The proposed electric
12        vehicle charging infrastructure deployment and
13        charging facility rebate plan shall conform to the
14        provisions of paragraph (2) of this subsection (f). An
15        electric utility's initial Clean Energy Integrated
16        Distribution Plan must include an electric vehicle
17        charging infrastructure deployment and charging
18        facility rebate plan. If the electric utility
19        determines no additional investment in electric
20        vehicle charging infrastructure is needed pursuant to
21        this subsection (f) to encourage the cost-effective
22        adoption of electric vehicles in this State in a
23        subsequent plan, the electric utility shall provide
24        the basis for such determination and report on the
25        level of investment made since enactment of this
26        amendatory Act of the 102nd General Assembly in the

 

 

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1        utility's subsequent Clean Energy Integrated
2        Distribution Plan filing.
3            (B) For an electric utility that serves less than
4        3,000,000 retail customers but more than 500,000
5        retail customers in this State, a plan to initiate a
6        request for proposals for third parties to propose
7        investments that could be made in a least-cost manner
8        as alternatives to capacity expansion of the utility
9        distribution system through technologies, including,
10        but not limited to, energy storage or other
11        alternatives. An electric utility subject to this
12        subparagraph (B) shall recover all reasonable and
13        prudent costs associated with running the request for
14        proposal and conducting the selection process
15        notwithstanding whether any proposed bid is approved.
16            (C) For an electric utility that serves more than
17        3,000,000 retail customers in the State, an
18        informational update on any actions undertaken
19        pursuant to Section 8-411 of this Act.
20        (2) The electric utility's electric vehicle charging
21    infrastructure deployment and charging facility rebate
22    plan for the 5-calendar-year period of its Clean Energy
23    Integrated Distribution Plan shall identify a system of
24    publicly accessible electric vehicle charging stations and
25    a schedule of rebates that would be available to: retail
26    customers taking delivery service from the electric

 

 

10200SB1100sam001- 347 -LRB102 04924 SPS 24488 a

1    utility at an address in the electric utility's service
2    territory; and any third party that would construct, own
3    or operate a publicly accessible electric vehicle charging
4    station.
5        An electric utility's electric vehicle charging
6    infrastructure deployment and charging facility rebate
7    plan shall include, at a minimum, the following categories
8    of information regarding the proposed deployment of
9    electric vehicle charging stations:
10            (A) Identification of existing publicly accessible
11        electric vehicle charging station infrastructure
12        installed in the electric utility's service territory.
13            (B) Sufficient detail to identify the proposed
14        general location and type of electric vehicle charging
15        station infrastructure that could be installed on
16        private or publicly owned land along proposed electric
17        vehicle charging corridors or other public spaces
18        within the electric utility's service territory,
19        including the general identification of any proposed
20        location and type of electric vehicle charging station
21        infrastructure that the electric utility proposes to
22        be part of the third-party request for proposals
23        process set forth in subparagraph (D) of this
24        paragraph (2);
25            (C) Proposed rebates for electric vehicle charging
26        infrastructure or facilities to be offered by the

 

 

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1        electric utility to any retail customer within the
2        utility's service territory. The Clean Energy
3        Integrated Distribution Plan must include the
4        following information:
5                (i) Identification of rebates to be made
6            available to residential customers, nonresidential
7            customers and multi-family residential buildings
8            that install home electric vehicle charging
9            facilities subsequent to the effective date of
10            this amendatory Act of this 102nd General
11            Assembly.
12                (ii) Identification of rebates designed to
13            promote the use of electric vehicles serving
14            low-income or moderate-income communities,
15            including, but not limited to, any rebates
16            available to shared electric vehicles, ride share
17            electric vehicles and to public transportation
18            fleets or school districts using electric
19            vehicles.
20                (iii) The manner and timing of the payment of
21            the proposed rebates; however, the rebates
22            identified pursuant to this subparagraph (C) may
23            be paid through a monthly bill credit spread
24            fairly and reasonably across a 12-month period,
25            and provided that any customer receiving a rebate
26            must sign up for and remain on a 3-part delivery

 

 

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1            service rate, if available.
2                (iv) The electric utility's estimated budget
3            to develop and implement an education and
4            engagement strategy that encourages the adoption
5            of electric vehicles in the electric utility's
6            service territory, including, but not limited to,
7            programs to be delivered to third-party entities
8            such as car dealerships and elementary, middle,
9            and high schools to educate and promote the
10            adoption of electric vehicles.
11            (D) A proposed request for proposals process, to
12        be managed by the electric utility, for third parties
13        to compete for utility rebates for the construction,
14        ownership, and operation of the electric vehicle
15        charging stations at specified locations within the
16        electric utility's service territory. An electric
17        utility shall have the option to plan for, construct,
18        install, control, own, manage, or operate any electric
19        vehicle charging infrastructure at any location
20        identified for inclusion in the request for proposals
21        which no third-party bid was received or awarded under
22        the criteria identified pursuant to item (iii) of this
23        subparagraph (D). The request for proposals process
24        shall address at least the following information:
25                (i) Criteria for identifying locations where
26            the utility will seek requests for proposals to

 

 

10200SB1100sam001- 350 -LRB102 04924 SPS 24488 a

1            construct, own and operate electric vehicle
2            charging stations.
3                (ii) Requirements for electric vehicle
4            charging station infrastructure owners and
5            operators regarding construction, installation,
6            operation, and maintenance for each proposed
7            general location.
8                (iii) Criteria by which the bids will be
9            reviewed and assessed; provided, however, that
10            bids shall address the proposed ownership and
11            ongoing operation of the electric vehicle charging
12            station. Bids may be contingent on securing state
13            or federal funds, including any tax incentives,
14            available for electric vehicle charging station
15            development or deployment.
16                (iv) Process for making rebates available to
17            electric vehicle charging station winning bidders.
18            The process for making rebates available to
19            winning bidders shall be designed to encourage
20            participation in the request for proposals process
21            and actual construction, installation, ownership,
22            and operation of the electric vehicle charging
23            station at each proposed location.
24        Notwithstanding anything to the contrary, it is the
25    intent of this subsection (f) and applicable provisions of
26    subsection (d) of this Section to develop a robust market

 

 

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1    for charging stations in the State that provides a wide
2    range of providers and options for consumers. While it is
3    critical that electric utilities facilitate the
4    development of the market, it is not the intent of this
5    subsection (f) and such applicable provisions of
6    subsection (d) that utilities will generally need to
7    provide charging stations or charging services, except in
8    those limited areas where the market fails to develop.
9        (3) For electric utilities that serve more than
10    3,000,000 retail customers in this State, a plan for the
11    deployment of energy storage for the 5 year period of the
12    Clean Energy Integrated Distribution Plan, including, as
13    applicable, storage proposed to be deployed under Section
14    8-411 of this Act.
15        (4) For electric utilities that serve less than
16    3,000,000 retail customers but more than 500,000 retail
17    customers in this State, a proposal to initiate a request
18    for proposals for third parties to propose investments
19    that could be made in a least-cost manner as alternatives
20    to capacity expansion of the utility distribution system
21    through technologies, including, but not limited to,
22    energy storage or other alternatives. The utility's plan
23    shall include:
24            (A) The process that the electric utility used to
25        identify circuits on its distribution system, which
26        will be the subject of a request for proposals

 

 

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1        process.
2            (B) The locations of the circuits identified
3        pursuant to the proposed process described in this
4        paragraph (4).
5            (C) The estimated timeline for the issuance of the
6        request for proposals, bidder qualifications, and
7        estimated project start dates.
8            (D) The electric utility's bid evaluation criteria
9        and process for approving bids, provided that the
10        electric utility may, at its discretion, apply
11        selection criteria in the request for proposals to
12        determine whether the proposed investment would be the
13        least-cost option when compared to other distribution
14        system upgrades that could be made on the proposed
15        circuit by the electric utility.
16    After approval of the initial Clean Energy Integrated
17Distribution Plan, an electric utility subject to this
18subsection (f) shall file a Clean Energy Integrated
19Distribution Plan for subsequent 5-calendar-year planning
20periods no later than 510 days prior to the expiration of the
21then-current Commission-approved plan.
22    An electric utility implementing a plan approved pursuant
23to subsection (g) of this Section, may update its plan at any
24time by filing such an update with the Commission in the same
25docket in which the Commission originally approved the plan.
26Any update filing made pursuant to this subsection (f) must

 

 

10200SB1100sam001- 353 -LRB102 04924 SPS 24488 a

1identify the updates to be implemented and any updates shall
2be deemed approved as reasonable 45 days after the filing
3unless the Commission initiates an investigation into the
4updated actions. Any final order regarding the investigation
5initiated pursuant to an electric utility's update filing must
6be issued within 150 days of the initiating order.
7    (g) The Commission shall review a Clean Energy Integrated
8Distribution Plan filed pursuant to subsection (f) of this
9Section to confirm the plan includes the information required
10by subparagraphs (A) through (C) of paragraph (1) of
11subsection (f) of this Section, as applicable, and shall issue
12its final order either approving the plan or approving the
13plan as modified within 150 days of the electric utility's
14filing.
15        (1) Except as provided in this Section, the Commission
16    shall apply the same evidentiary standards, including, but
17    not limited to, those concerning the prudence and
18    reasonableness of the costs incurred by the utility, in
19    the hearing as it would apply in a hearing to review a
20    filing for a general increase in rates under Article IX of
21    this Act. The Commission shall not, however, have the
22    authority in a proceeding under this subsection (g) to
23    consider or order any changes to any prior plans approved
24    by the Commission. The Commission's approval of a plan for
25    the applicable 5-calendar-year period shall be final upon
26    entry of the Commission's order and shall not be subject

 

 

10200SB1100sam001- 354 -LRB102 04924 SPS 24488 a

1    to reopening, reexamination, or collateral attack in any
2    other Commission proceeding, case, docket, order, rule or
3    regulation, provided, however, that nothing in this
4    subsection (g) shall prohibit a party from petitioning the
5    Commission to rehear or appeal to the courts the order
6    pursuant to the provisions of this Act.
7        (2) The Commission's order issued pursuant this
8    subsection (g) shall address whether the electric
9    utility's proposed level of investment pursuant to
10    subparagraph (A) of paragraph (1) of subsection (f) of
11    this Section reasonably meets the requirements set forth
12    in such subparagraph. The Commission shall either approve
13    the proposed level of investment or modify the proposed
14    level of investment and approve the proposed level of
15    investment as modified. If the Commission finds that the
16    proposed level of investment reasonably serves the purpose
17    outlined in such subparagraph, the Commission shall
18    approve the utility's proposed activities and the electric
19    utility shall implement the planned activities in
20    accordance with the Commission approval. If the Commission
21    modifies the proposed level of investment, the electric
22    utility shall notify the Commission in writing within 90
23    days of service of the Commission's order modifying the
24    proposal as to whether the electric utility accepts the
25    Commission's modifications. If the electric utility
26    notifies the Commission in writing that it does not accept

 

 

10200SB1100sam001- 355 -LRB102 04924 SPS 24488 a

1    the Commission's modifications, the electric utility shall
2    have no further obligations with respect to the proposals
3    filed pursuant to subparagraph (A) of paragraph (1) and
4    paragraph (2) of subsection (f) of this Section, including
5    any obligation to implement the proposals as modified and
6    may, at its discretion, file a new proposal with the
7    Commission in a subsequent Clean Energy Integrated
8    Distribution Plan, including an update authorized under
9    this Section.
10        (3) The Commission's order issued pursuant this
11    subsection (g) shall address whether the proposed process
12    identified by an electric utility that serves less than
13    3,000,000 retail customers but more than 500,000 retail
14    customers in this State pursuant to subparagraph (B) of
15    paragraph (1) of subsection (f) of this Section is
16    reasonable. The Commission shall either approve the
17    proposal or modify the proposal and then approve the
18    proposal as modified. If the Commission finds that the
19    proposal complies with the requirements of such
20    subparagraph (B), the Commission shall approve the
21    utility's proposal. If the Commission modifies the
22    proposal, the electric utility shall notify the Commission
23    in writing within 90 days of service of the Commission's
24    order modifying and approving the proposal as to whether
25    the electric utility accepts the Commission's
26    modifications. If the electric utility notifies the

 

 

10200SB1100sam001- 356 -LRB102 04924 SPS 24488 a

1    Commission in writing that it does not accept the
2    Commission's modifications, the electric utility shall
3    have no further obligations with respect to the proposals
4    filed pursuant to such subparagraph (B), including any
5    obligation to implement the proposals as modified and may,
6    at its discretion, file a new proposal with the Commission
7    in a subsequent Clean Energy Integrated Distribution Plan.
8        (4) Upon approval by the Commission and, when
9    applicable, acceptance by the electric utility of any
10    modification and approval by the Commission of its Clean
11    Energy Integrated Distribution Plan, no further approvals
12    by the Commission other than those approvals set forth in
13    this Section shall be necessary.
14    In addition to the plan authorized by subsection (f) of
15this Section, as approved pursuant to this subsection (g), an
16electric utility that serves more than 500,000 retail
17customers in this State shall be permitted to administer
18programs designed to encourage or incentivize the adoption of
19electric vehicles by Illinois electric consumers, and such
20programs shall not be prohibited by the Commission as
21promotional practices under any rules or policies of the
22Commission, including, but not limited to, 83 Ill. Adm. Code
23Part 275.
 
24    (220 ILCS 5/8-402.2 new)
25    Sec. 8-402.2. Public Schools Carbon-Free Assessment

 

 

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1programs.
2    (a) Within one year after the effective date of this
3amendatory Act of the 102nd General Assembly, each electric
4utility serving over 500,000 retail customers in this State
5shall implement a Public Schools Carbon-Free Assessment
6program.
7    (b) Each utility's Public Schools Carbon-Free Assessment
8program shall include the following requirements:
9        (1) Each plan shall be designed to offer within the
10    utility's service territory to assist public schools, as
11    defined by Section 1-3 of the School Code, to increase the
12    efficiency of their energy usage, to reduce the carbon
13    emissions associated with their energy usage, and to move
14    toward a goal of public schools being carbon-free in their
15    energy usage by 2030. The program shall include a target
16    of completing Public Schools Carbon-Free Assessment for
17    all public schools in the utility's service territory by
18    December 31, 2029.
19        (2) The Public Schools Carbon-Free Assessment shall be
20    generally standardized Assessment but may incorporate
21    flexibility to reflect the circumstances of individual
22    public schools and public school districts.
23        (3) The Public Schools Carbon-Free Assessment shall
24    include, but not be limited to, comprehensive analyses of
25    the following subjects:
26            (A) The top energy efficiency savings

 

 

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1        opportunities for the public school, by energy saved;
2            (B) The total achievable solar energy potential on
3        or nearby a public school's premises and able to
4        provide power to a school;
5            (C) The infrastructure required to support
6        electrification of the facility's space heating and
7        water heating needs;
8            (D) The infrastructure requirements to support
9        electrification of a school's transportation needs;
10        and
11            (E) The investments required to achieve a WELL
12        Certification or similar certification as determined
13        through methods developed and updated by the
14        International WELL Building Institute or similar or
15        successor organizations.
16        (4) The Public Schools Carbon-Free Assessment also
17    shall include, but not be limited to, mechanical
18    insulation evaluation inspection and inspection of the
19    building envelope(s).
20        (5) With respect to those public school construction
21    projects for public schools within the service territory
22    of a utility serving over 500,000 retail customers in this
23    State and for which a public school district applies for a
24    grant under Section 5-40 of the School Construction Law on
25    or after June 1, 2023, the district must submit a copy of
26    the applicable Public Schools Carbon-Free Assessment

 

 

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1    report, or, if no such Public Schools Carbon-Free
2    Assessment has been performed, request the applicable
3    utility to perform such a Public Schools Carbon-Free
4    Assessment and submit a copy of the Public Schools
5    Carbon-Free Assessment report promptly when it becomes
6    available. The Public Schools Carbon-Free Assessment
7    report shall include a mechanical insulation evaluation
8    inspection and inspection of the building envelopes. The
9    district must demonstrate how the construction project is
10    designed and managed to achieve the goals that all public
11    elementary and secondary school facilities in the State
12    are able to be powered by clean energy by 2030, and for
13    such facilities to achieve carbon-free energy sources for
14    space heat, water heat, and transportation by 2050.
15        (6) The results of each Public Schools Carbon-Free
16    Assessment shall be memorialized by the utility or by a
17    third party acting on behalf of the utility in a usable
18    report form and shall be provided to the applicable public
19    school. Each utility shall be required to retain a copy of
20    each Public Schools Carbon-Free Assessment report and to
21    provide confidential copies of each report to the Illinois
22    Power Agency and the Illinois Capital Development Board
23    within 3 months of its completion.
24        (7) The Public School Carbon-Free Assessment shall be
25    conducted in coordination with each utility's energy
26    efficiency and demand-response plans under Sections 8-103,

 

 

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1    8-103A, and 8-103B of this Act, to the extent applicable.
2    Nothing in this Section is intended to modify or require
3    modification of those plans. However, the utility may
4    request a modification of a plan approved by the
5    Commission, and the Commission may approve the requested
6    modification, if the modification is consistent with the
7    provisions of this Section and Section 8-103B of this Act.
8        (8) If there are no other providers of assessments
9    that are substantively the same as those being performed
10    by utilities pursuant to this Section by 2024, a utility
11    that has a Public Schools Carbon-Free Assessment program
12    may offer assessments to public schools that are not
13    served by a utility subject to this Section at the
14    utility's cost.
15        (9) The Public Schools Carbon-Free Assessment shall be
16    offered to and performed for public schools in the
17    utility's service territory on a complementary basis by
18    each utility, with no Assessment fee charged to the public
19    schools for the Assessments. Nothing in this Section is
20    intended to prohibit the utility from recovering through
21    rates approved by the Commission the utility's prudent and
22    reasonable costs of complying with this Section.
 
23    (220 ILCS 5/8-411 new)
24    Sec. 8-411. Public solicitation process.
25    (a) The General Assembly finds that the electric industry

 

 

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1is undergoing rapid transformation, including fundamental
2changes regarding how electricity is generated, procured, and
3delivered and how customers are choosing to participate in the
4supply and delivery of electricity to and from the electric
5grid. Building upon the State's goals to increase the
6procurement of electricity from renewable energy resources,
7including distributed generation and storage devices, the
8General Assembly finds that it is now necessary to study how
9electric utility distribution system capacity expansion
10projects could be deferred or eliminated by procuring
11alternative solutions that employ distributed generation and
12storage devices. Specifically, the General Assembly finds that
13these alternative solutions may present opportunities to
14relieve capacity constraints on the distribution system that
15would otherwise require utility capital investment. The
16General Assembly therefore finds that it is beneficial to
17undertake the program described in this Section to explore a
18variety of objectives, including, but not limited to, the
19extent to which alternative solutions to upgrading the
20conventional electric grid using distributed generation and
21storage devices can defer or eliminate utility capital
22investment and reduce costs.
23    As used in this Section:
24    "Alternative solutions" means distributed generation, as
25that term is defined in Section 16-107.6 of this Act, that has
26not been compensated under Section 16-107.6, and storage

 

 

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1devices, which, for purposes of this Section, shall mean a
2battery or other electricity storage device that is
3interconnected to the distribution system of the electric
4utility and has not been compensated under a separate program
5or provision of this amendatory Act of the 102nd General
6Assembly.
7    "Electric utility" has the meaning given to that term in
8Section 16-102 of this Act.
9    (b) An electric utility serving more than 3,000,000 retail
10customers in Illinois shall, under the program described in
11this Section, conduct public solicitation processes to procure
12alternative solutions that will defer or eliminate electric
13utility distribution system capacity expansion projects. The
14utility's program shall be designed to procure alternative
15solutions for up to 4 distribution system capacity expansion
16projects, each of which is the utility's estimated to cost
17complete is at least $5,000,000, during the 5-year period of
18the program, and the projects shall be located throughout the
19utility's service territory. Notwithstanding the
20implementation of the program described in this Section,
21nothing in this Section limits the utility's ability to
22otherwise procure or invest in electric utility distribution
23system capacity expansion projects.
24    (c) Each electric utility subject to the requirements of
25this Section shall submit to the Commission the utility's plan
26for developing and conducting a third-party request for

 

 

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1proposals process for purposes of procuring alternative
2solutions that will defer or eliminate distribution system
3capacity expansion projects. Such a plan shall include, but
4not be limited to, the following:
5        (1) a description of the types of projects within
6    years 3 to 5 of the utility's planning cycle for which the
7    utility will seek alternative solutions, including the
8    screening criteria and associated minimum score or
9    threshold that the utility will apply to determine whether
10    a particular distribution system capacity expansion
11    project is eligible to be bid out under the request for
12    proposal process established by the plan;
13        (2) the bidder qualifications and bidding criteria;
14    and
15        (3) the bid evaluation process.
16    The plan shall also set forth the process by which the
17utility will provide notice to potential bidders of eligible
18projects and the publishing of requests for proposals. The
19utility must update the list of eligible projects, at a
20minimum, on an annual basis. The list of eligible projects, as
21updated, shall also identify those ineligible projects that
22did not achieve the screening criteria's minimum score or
23threshold, provided that the identification of ineligible
24projects shall be limited to those falling within a band that
25does not exceed 35% of the screening criteria's minimum score
26or threshold.

 

 

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1    Within 120 days after the utility files its plan under
2this subsection (c), the Commission shall review and, after
3notice and hearing, enter an order approving the plan if it
4finds that the plan conforms to the requirements of this
5Section or, if the Commission finds that the plan does not
6conform to the requirements of this Section, the Commission
7must enter an order describing in detail the reasons for not
8approving the plan. The utility may resubmit its plan to
9address the Commission's concerns, and the Commission shall
10expeditiously review and by order approve the revised plan if
11it finds that the plan conforms to the requirements of this
12Section, provided that such order shall be entered no later
13than 90 days after the utility resubmits its plan.
14    No later than 90 days after the close of the first year of
15the program, the utility shall submit a report to the
16Commission that includes any updates to the plan, a schedule
17for the procurement of alternative solutions for any proposed
18projects for the next plan year, the expenditures made for the
19prior plan year, and an evaluation of the extent to which the
20objectives of this program are being achieved. No later than
2190 days after the close of the fifth and final year of the
22program, the utility shall submit a report to the Commission
23that includes the expenditures made for the prior plan year
24and cumulatively and an evaluation of the extent to which the
25objectives of this program were achieved during the fifth year
26and cumulatively.

 

 

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1    (d) The costs of the program that are incurred by the
2electric utility, including, but not limited to, the projects
3procured pursuant to a plan approved by the Commission
4pursuant to subsection (c) of this Section, shall be recovered
5pursuant to Article IX or Section 16-108.5 of this Act. The
6recovery of the costs incurred for each project shall occur
7over a period of time that is equal to the life of the asset or
8assets being procured and may be capitalized by the electric
9utility.
10    (e) Each alternative solution procured pursuant to this
11Section shall also be reflected in the calculation of the
12distributed generation rebate values calculated under
13subsection (e) of Section 16-107.6 of this Act. No later than
1430 days after the electric utility executes a contract with
15the winning bidder of an alternative solution, the utility
16shall submit an informational filing to the Commission in the
17docket established under subsection (e) of Section 16-107.6.
18The informational filing shall describe the scope, size,
19location, cost, and impacts of the alternative solution
20procured by the utility. No later than 60 days after the
21electric utility submits such informational filing, the
22Commission shall calculate a revised distributed generation
23rebate value for each geographic area impacted by the
24alternative solution.
25    (f) To the extent feasible and consistent with State and
26federal law, the investments under the plan should provide

 

 

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1employment opportunities for all segments of the population
2and workforce, including minority-owned, female-owned,
3veteran-owned, and disability-owned business enterprises, and
4shall not, consistent with State and federal law, discriminate
5based on race or socioeconomic status.
 
6    (220 ILCS 5/8-511.1 new)
7    Sec. 8-511.1. Utility data reporting requirement.
8    (a) Each electric utility that serves more than 3,000,000
9retail customers in the State shall file with the Commission
10annually by April 15 a report that includes the following:
11        (1) the number and duration of curtailment events that
12    are not related to demand response;
13        (2) the number of nonsummer peak events;
14        (3) the average load shape by customer class;
15        (4) the amount of line losses and copy of most recent
16    line loss study;
17        (5) the average number of customers with arrearages
18    and the average amount of arrearages, by customer class;
19        (6) the number of disconnections due to arrearages per
20    customer class and the number of reconnections per
21    customer class, by month;
22        (7) the number and duration of light load events; and
23        (8) the number and duration of peak load events.
24    (b) Each utility shall file with the Commission monthly a
25report that includes the number of disconnections due to

 

 

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1arrearages per customer class and the number of reconnections
2per customer class for the prior month.
 
3    (220 ILCS 5/8-512 new)
4    Sec. 8-512. Utility plant disclosure and workshop process.
5    (a) Beginning in the first calendar year following the
6year in which this amendatory Act of the 102nd General
7Assembly takes effect, each electric utility that serves more
8than 500,000 customers in this State shall, within 90 days
9after the close of each of the electric utility's fiscal
10quarters, submit to the Commission a report that summarizes
11the additions to utility plant that were placed into service
12during the prior quarter, which for purposes of the report
13shall be the most recently closed fiscal quarter. The report
14shall also summarize the utility plant the electric utility
15projects it will place into service through the end of the
16calendar year in which the report is filed. The information
17provided pursuant to this Section is intended to be
18informational and to provide a preliminary view of costs and
19investments, which may change. Accordingly, the information
20provided pursuant to this Section shall not be binding on the
21utility and shall not be the basis for a finding in any
22Commission proceeding of imprudence, unreasonableness, or lack
23of use or usefulness of any individual or aggregate level of
24utility plant or other investment or expenditure addressed.
25Within 7 days after receiving a quarterly report, the

 

 

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1Commission shall timely make such report available to the
2public by posting it on the Commission's website.
3    Each quarterly report shall include the following detail:
4        (1) the total dollar value of the additions to utility
5    plant placed in service during the prior quarter;
6        (2) a list of the major investment categories the
7    utility used to manage its routine standing operational
8    activities during the prior quarter including the total
9    dollar amount for the work reflected in each investment
10    category in which utility plant in service is equal to or
11    greater than $2,000,000 for a utility that serves more
12    than 3,000,000 customers in the State or $500,000 for a
13    utility that serves less than 3,000,000 retails customers
14    but more than 500,000 retail customers in the State as of
15    the last day of the quarterly reporting period, as well as
16    a summary description of each investment category;
17        (3) a list of the projects which the utility has
18    identified by a unique investment tracking number for
19    utility plant placed in service during the prior quarter
20    for utility plant placed in service with a total dollar
21    value as of the last day of the quarterly reporting period
22    that is equal to or greater than $2,000,000 for a utility
23    that serves more than 3,000,000 customers in the State or
24    $500,000 for a utility that serves less than 3,000,000
25    retails customers but more than $500,000 retail customers
26    in the State, as well as a summary of each project;

 

 

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1        (4) the estimated total dollar value of the additions
2    to utility plant projected to be placed in service through
3    the end of the calendar year in which the report is filed;
4        (5) a list of the major investment categories the
5    utility used to manage its routine standing operational
6    activities with utility plant projected to be placed in
7    service through the end of the calendar year in which the
8    report is filed, including the total dollar amount for the
9    work reflected in each investment category in which
10    utility plant in service is projected to be equal to or
11    greater than $2,000,000 for a utility that serves more
12    than 3,000,000 customers in the State or $500,000 for a
13    utility that serves less than 3,000,000 retails customers
14    but more than 500,000 retail customers in the State, as
15    well as a summary description of each investment category;
16    and
17        (6) a list of the projects for which the utility has
18    identified by a unique investment tracking number for
19    utility plant projected to be placed in service through
20    the end of the calendar year in which the report is filed
21    with an estimated dollar value that is equal to or greater
22    than $2,000,000 for a utility that serves more than
23    3,000,000 customers in the State or $500,000 for a utility
24    that serves less than 3,000,000 retails customers but more
25    than $500,000 retail customers in the State, as well as a
26    summary description of each project.

 

 

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1    (b) To promote the transparency of the utility plant
2investments planned over a 5-year planning period by an
3electric utility subject to the requirements of this Section,
4the Commission shall convene a triennial workshop process for
5each such utility for the sole purpose of establishing an
6open, inclusive, and cooperative educational forum regarding
7such investments. The workshop process must be designed to
8provide participants with information about the electric
9utility's distribution system investment plans over a 5-year
10period, beginning with the year in which the workshop is held.
11    It is a goal of the State that this workshop process will
12educate and equip interested stakeholders so that they can
13effectively and efficiently provide feedback and input to the
14electric utility. As part of the workshop process, the
15electric utility shall submit to the Commission, for
16informational purposes only, the electric utility's utility
17plant investment plan for the 5-year period beginning in the
18year in which the workshop is held. The Commission shall make
19public the utility plant investment plan by posting it on the
20Commission's website, set the location and time of any
21workshop to be held as part of the triennial workshop process,
22and establish a data request process, consistent with the
23Commission's rules, that affords workshop participants
24opportunities to submit data requests to the utility, and
25receive responses, prior to the workshop, regarding the
26information described in subsection (a) of this Section. Upon

 

 

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1the written request of a workshop participant, the utility
2shall also present at a given workshop at least one
3appropriate company representative who can address the
4specific written questions or written categories of questions
5identified in advance by the workshop participant regarding
6the utility plant investment plan. The information provided as
7part of the workshop process pursuant to this Section is
8intended to be informational and to provide a preliminary view
9of costs and investments, which may change. Accordingly, the
10information provided pursuant to this Section shall not be
11binding on the utility and shall not be the basis for a finding
12in any Commission proceeding of imprudence, unreasonableness,
13or lack of use or usefulness of any individual or aggregate
14level of utility plant or other investment or expenditure
15addressed.
16    (c) The projections, estimates, plans, and forward-looking
17information that are provided pursuant to subsections (a) and
18(b) of this Section are for educational and planning purposes,
19and are intended to be illustrative of the investments that
20the utility proposes to make as of the time of submittal.
21Nothing in this Section precludes, or is intended to limit, a
22utility's ability to modify and update its projections,
23estimates, plans, and forward-looking information previously
24submitted pursuant to such subsections in order to reflect
25stakeholder input or other new or updated information and
26analysis, including, but not limited to, changes in specific

 

 

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1investment needs, customer electric use patterns, customer
2applications and preferences, and commercially available
3equipment and technologies. The reports and plans submitted
4pursuant to this Section are intended to be flexible planning
5tools, and are expected to evolve as new information becomes
6available.
7    (d) No later than 90 days following the close of the first
8triennial workshop processes conducted under this Section,
9Commission staff shall prepare and submit a report to the
10Commission summarizing the workshop process required by
11subsection (b) of this Section, including the number of
12workshops, locations of the workshops, length of the workshop
13process, topics and issues addressed, number of data requests
14submitted, identification of participants, and the successes,
15challenges, and any opportunities for improvement. The staff
16report shall also include a recommendation regarding whether
17the Commission should initiate a proceeding to address and
18resolve any outstanding workshop process-related issues
19identified by staff.
 
20    (220 ILCS 5/8-514 new)
21    Sec. 8-514. Performance metrics.
22    (a) The General Assembly finds that the electric industry
23in Illinois has made significant advances in reliability and
24in other areas important to meeting customers' electricity
25needs. The electric industry is undergoing rapid

 

 

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1transformation, including fundamental changes in how
2electricity is generated, procured, and delivered and how
3customers are choosing to participate in the supply and
4delivery of electricity to and from the electric grid.
5Building upon the State's goals to increase the procurement of
6electricity from renewable energy resources, including
7distributed generation and storage devices, the General
8Assembly finds that electric utilities should not only
9maintain the advancements and achievements they have made, but
10they should make cost-effective investments that support
11moving forward on Illinois' clean energy policies, including
12at a minimum investments designed to integrate distributed
13energy resources through deployment of telemetry equipment and
14infrastructure with no-latency or low-latency, implement and
15comply with critical infrastructure protection standards,
16plans, and industry best practices, and support, and mitigate
17the impacts of, the system demands of electric vehicle
18charging and other electrification. The General Assembly finds
19that performance-based metrics will align the utility's
20incentives with its customers and the State, and should be
21adopted to ensure that Illinois continues to move forward with
22efficient and effective grid modernization.
23    (b) No later than 30 days after an electric utility files a
24tariff pursuant to Section 9-201.1 of this Act, the electric
25utility shall file a petition with the Commission seeking
26approval of metrics and a tariff mechanism as described in

 

 

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1this Section. For each such utility, the Commission shall
2approve, based on the substantial evidence proffered in the
3proceeding initiated pursuant to this subsection (b), at least
49, but no more than 11, metrics designed to maintain
5performance values and targets, or to achieve incremental
6improvements over baseline performance values and targets,
7over a performance period of up to 10 years. For each utility,
8the metrics approved by the Commission shall include at least
91, but no more than 3, metrics from each of the categories of
10performance set forth in paragraphs (1) through (8) of this
11subsection (b); however, nothing in this Section is intended
12to require that different electric utilities must be subject
13to the same metrics.
14        (1) Metrics designed to measure the reliability of the
15    electric service provided by the utility, which may
16    include, but are not limited to, the utility's performance
17    related to the frequency and duration of service
18    interruptions and restoration of service following an
19    interruption. The utility's achievement toward this metric
20    shall incorporate automatic restorations that incorporate
21    the features of new technology, including, but not limited
22    to, smart switches, microgrid and community energy
23    storage.
24        (2) Metrics designed to measure the average round-trip
25    time, in milliseconds, for connected devices with advanced
26    telemetry, as measured from the control center to end

 

 

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1    devices.
2        (3) Metrics designed to measure the utility's customer
3    service performance, which may include, but are not
4    limited to, the abandoned call rate or first call
5    resolution rate for calls placed to the utility's call
6    center and the average service reliability index for those
7    customers that have interconnected a distributed renewable
8    energy generation device to the utility's distribution
9    system and are lawfully taking service under an applicable
10    tariff.
11        (4) Metrics designed to measure the utility's
12    performance related to the interconnection process.
13        (5) Metrics designed to measure the utility's
14    performance related to achievement of environmental
15    objectives, which may include, but are not limited to, a
16    reduction in the utility's overall greenhouse gas
17    emissions.
18        (6) Job creation: design a performance metric
19    measuring the number of full-time equivalent jobs created
20    as a result of this amendatory Act of the 102nd General
21    Assembly.
22        (7) Metrics designed to measure the utility's
23    performance related to community, education, or job
24    training activities and initiatives.
25        (8) Opportunities for minority-owned, female-owned,
26    veteran-owned, and disability-owned business enterprises:

 

 

10200SB1100sam001- 376 -LRB102 04924 SPS 24488 a

1    design a performance metric regarding the creation of
2    opportunities for minority-owned, female-owned,
3    veteran-owned, and disability-owned business enterprises
4    consistent with State and federal law.
5    For purposes of this Section, "full-time equivalent jobs"
6includes direct jobs, contractor positions, and induced jobs,
7as these terms have been defined by the electric utility in its
8annual reports submitted to the Commission under subsection
9(b) of Section 16-108.5 of this Act.
10    The metrics proposed pursuant to this Section shall be
11presented with particularity and supported by substantial
12evidence, and may include additional categories of performance
13beyond those listed in paragraphs (1) through (8) of this
14subsection (b). The metrics proposed and approved under this
15subsection (b) shall prioritize the importance of maintaining
16a reliable and resilient electric grid, as enabled by the
17near-instantaneous communication of advanced telemetry
18technologies. To the extent applicable and practicable, the
19metrics proposed and approved shall also be consistent with,
20and support achievement of, the State's clean energy policies,
21which require electric utilities to make cost-effective
22investments designed to (i) reduce peak demand in the
23utility's service territory, (ii) integrate distributed energy
24resources through deployment of telemetry equipment and
25infrastructure with no-latency or low-latency, (iii) fully
26implement and comply with critical infrastructure protection

 

 

10200SB1100sam001- 377 -LRB102 04924 SPS 24488 a

1standards, plans, and industry best practices, (iv) support,
2and mitigate the impacts of, the system demands of electric
3vehicle charging and other electrification, and (v) consider
4alternatives to traditional distribution system investment,
5such as distributed energy resources, to address changing
6system demands. The Commission shall not approve a metric that
7is reasonably expected to have the effect of reducing the
8workforce.
9    Where a metric approved pursuant to this subsection (b)
10includes a performance period that is less than 10 years, no
11later than 180 days prior to the expiration of such metric the
12applicable electric utility shall request that the Commission
13initiate a hearing to approve another metric pursuant to this
14paragraph to replace such metric upon or subsequent to its
15expiration.
16    (c) Each metric shall include performance goals for each
17year of the applicable performance period, which shall be
18designed to demonstrate that the electric utility is on track
19to achieve the performance goal for the metric at the end of
20the applicable performance period. Each metric performance
21period shall commence on January 1, 2023.
22    Notwithstanding anything to the contrary, electric
23utilities subject to the requirements of this Section shall be
24permitted to file revisions to their applicable tariffs for
25purposes of achieving the metrics and annual goals and targets
26set forth in this Section.

 

 

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1    (d) (1) In the proceeding initiated pursuant to subsection
2(b) this Section, the Commission shall also approve, based on
3the substantial evidence proffered in the proceeding,
4financial incentives and penalties applicable to the metrics
5described in paragraphs (1) through (6) of such subsection
6(b). The maximum total basis point adjustment associated with
7the metrics approved by the Commission pursuant to subsection
8(b) shall not exceed, in total, a 70 basis point decrease or 60
9basis point increase for a given year. Each of the metrics
10established pursuant to paragraphs (1) through (6) of such
11subsection (b) may have an associated financial incentive or
12financial penalty, or both, for a given year, provided that
13the difference between any such incentive or penalty for a
14given metric in a given year shall not exceed 15 basis points.
15    (2) The metrics and performance goals set forth in, and
16approved under, subsections (b) and (c) of this Section are
17based on the assumptions that the utility may fully implement
18the technology and equipment, and make the investments,
19required to achieve the metrics and performance goals. If the
20utility is unable to meet the metrics and performance goals
21for such reasons, then the utility shall be permitted to file a
22petition with the Commission requesting that the utility be
23excused from compliance with the applicable performance goal
24or goals. The burden of proof shall be on the utility, and the
25utility's petition shall be supported by substantial evidence.
26No later than 90 days after the utility files its petition, the

 

 

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1Commission shall, after notice and hearing, enter its order
2approving or denying, in whole or in part, the utility's
3petition based on the extent to which the utility demonstrated
4that its achievement of the affected metrics and performance
5goals was hindered by unanticipated technology or equipment
6implementation delays, or other investment impediments, that
7were reasonably outside of the utility's control.
8    (3) The adjustment to the utility's cost of equity
9required by this subsection (d) shall be applied as described
10in this Section for the 12-month period in which the
11performance occurred through a separate tariff mechanism,
12which shall be filed by the utility together with its metrics.
13The tariff mechanism shall make provision for the application
14of such adjustment in conjunction with the applicable annual
15proceeding conducted pursuant to Section 9-201.2 of this Act,
16as well as address application of such adjustment in a year or
17years where no such proceeding is conducted.
18    (e) Notwithstanding the provisions of subsections (b)
19through (d) of this Section, the Commission shall be permitted
20to approve one or more additional metrics that are consistent
21with, and support the achievement of, the State's clean energy
22policies, including, but not limited to, those policies that
23require electric utilities to make cost-effective investments
24designed to (i) reduce peak demand in the utility's service
25territory, (ii) integrate distributed energy resources through
26deployment of telemetry equipment and infrastructure with

 

 

10200SB1100sam001- 380 -LRB102 04924 SPS 24488 a

1no-latency or low-latency, (iii) fully implement and comply
2with critical infrastructure protection standards, plans, and
3industry best practices, (iv) support, and mitigate the
4impacts of, the system demands of electric vehicle charging
5and other electrification, and (v) consider alternatives to
6traditional distribution system investment, such as
7distributed energy resources, to address changing system
8demands. Any such additional metric shall be proposed in the
9proceeding initiated pursuant to subsection (b) of this
10Section, and shall be supported by substantial evidence. No
11financial penalty shall apply to any metric proposed and
12approved pursuant to this subsection (e); however, the
13Commission may approve a financial incentive associated with
14any such additional metric.
15    (f) No later than 180 days after the utility files its
16metrics, or December 1 of the year in which the utility files,
17whichever is earlier, the Commission shall, after notice and
18hearing, enter an order approving, or approving with
19modification, the utility's metrics and tariff.
20    (g) On or before March 1 of each subsequent year, each
21electric utility shall file a report with the Commission that
22includes, among other things, a description of how the
23electric utility performed under each metric, an
24identification of any extraordinary events that adversely
25impacted the utility's performance, and calculation of the
26performance adjustments established under subsection (d) of

 

 

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1this Section. No later than 10 days after a utility files its
2report, the Commission shall have the authority to initiate an
3investigation of the report. If the Commission enters upon an
4investigation, it shall, after notice and hearing, enter its
5order approving, or approving with modification, the report no
6later than 60 days after the utility filed its report. If the
7Commission does not initiate an investigation of the report
8within 10 days after it is filed, the report shall be deemed
9accepted. Any adjustment to the utility's cost of equity
10component of its tariff in accordance with this Section shall
11be applied beginning with the next rate year.
 
12    (220 ILCS 5/9-201.1 new)
13    Sec. 9-201.1. Electric rate reform.
14    (a) Beginning on the effective date of this amendatory Act
15of the 102nd General Assembly and as set forth in this Section,
16each electric utility that is a participating utility, as
17defined in Section 16-108.5 of this Act, will begin to
18transition back to a traditional general rate case recovery
19process and tariff to replace its formula rate tariff
20previously approved under such Section. It is the intent of
21the General Assembly that these electric utilities maintain
22the advancements and achievements in electric service
23reliability and continue to make cost-effective investments to
24support Illinois clean energy policies, including at a minimum
25investments designed to (i) reduce peak demand in the

 

 

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1utility's service territory, (ii) integrate distributed energy
2resources through deployment of telemetry equipment and
3infrastructure with no-latency or low-latency, (iii) fully
4implement and comply with critical infrastructure protection
5standards, plans, and industry best practices, (iv) support,
6and mitigate the impacts of, the system demands of electric
7vehicle charging and other electrification, and (v) consider
8alternatives to traditional distribution system investment,
9such as distributed energy resources, to address changing
10system demands. To ensure timely Commission review of these,
11and all other, distribution system costs incurred by an
12electric utility, and to avoid the regulatory lag, sudden rate
13increases that can occur under traditional ratemaking, and
14mitigate the rate impacts of large utility expenses, electric
15utilities that are participating utilities shall transition to
16the ratemaking mechanisms prescribed in this Section.
17    (b) Beginning on the effective date of this amendatory Act
18of the 102nd General Assembly, electric utilities subject to
19the requirements of this Section shall be permitted to file a
20general rate case under Section 9-201 of this Act that
21includes, and is consistent with, the terms and conditions of
22this subsection (b); in no event shall such an electric
23utility submit its initial general rate case filing authorized
24under this Section to the Commission later than 180 days after
25the date on which the utility was no longer eligible to update
26its performance-based formula rate as set forth in subsection

 

 

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1(h) of Section 16-108.5 of this Act. Each initial general rate
2case filed by an electric utility subject to the requirements
3of this Section, and any subsequently filed rate case, shall
4be designed to recover its actual costs of delivery services
5through tariffs applied to all of the utility's retail
6customers. Notwithstanding anything to the contrary, each such
7rate case filing shall be subject to the following terms and
8conditions:
9        (1) Without limiting a utility's test year period
10    options as authorized by the Commission's rules, the
11    electric utility may elect that the general rate case
12    filing use a modified test year period, as defined in this
13    paragraph (1), in order to avoid dramatic shifts in rates
14    that would otherwise occur due solely to the use of a
15    particular test year period to set the rates that differs
16    from the basis on which rates have been set in recent
17    years. The modified test year period shall consist of
18    final data for the most recent full historical calendar
19    year, plus projected plant additions and correspondingly
20    updated depreciation reserve and expense for the calendar
21    year in which the general rate case and data are filed.
22        (2) The cost of equity component approved by the
23    Commission shall be consistent with Commission practice
24    and law, but shall not exceed the 70th percentile, or fall
25    below the 30th percentile, of the national average cost of
26    equity for the most recently completed calendar year prior

 

 

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1    to the year in which the general rate case is filed. For
2    purposes of this Section, the national average cost of
3    equity shall be the simple average of the cost of equity
4    approved in each order of a state regulatory commission,
5    other than the Commission, issued during the applicable
6    calendar year that applies to retail electric service
7    provided by an investor-owned public utility company
8    operating in the United States. No order shall be excluded
9    from the national average cost of equity calculated under
10    this paragraph (2) on the grounds that it is subject to
11    rehearing or appeal. If, for any applicable year, there
12    are fewer than 15 applicable orders of state regulatory
13    commission with which to compute the average cost of
14    equity, the Commission shall include in the calculation of
15    the national average the number of state regulatory orders
16    from the prior year or years necessary to reach a total of
17    15, beginning with the most recently issued and proceeding
18    in reverse chronological order.
19        (3) The utility's actual year-end or forecasted
20    year-end capital structure, as applicable, that includes a
21    common equity ratio, excluding goodwill, of up to and
22    including 54% of the total capital structure shall be
23    deemed reasonable and used to set rates.
24    (c) The data submitted by an electric utility in support
25of its general rate case filing shall be based on the utility's
26applicable filed Federal Energy Regulatory Commission (FERC)

 

 

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1Form 1, to the extent practicable and to the extent the
2utility's test year period is based on a historical, calendar
3year test year. For purposes of this subsection (c), "FERC
4Form 1" means the Annual Report of Major Electric Utilities,
5Licensees and Others that electric utilities are required to
6file with the Federal Energy Regulatory Commission under the
7Federal Power Act, Sections 3, 4(a), 304, and 209, modified as
8necessary to be consistent with 83 Ill. Adm. Code Part 415 as
9of December 1, 2020. Nothing in this Section is intended to
10allow costs that are not otherwise recoverable to be
11recoverable by virtue of inclusion in FERC Form 1.
12    (d) Each electric utility subject to the requirements of
13this Section shall also be subject to the requirements of
14Sections 8-514 and 9-201.2 of this Act.
15    (e) In any general rate case filing made in compliance
16with subsection (b) of this Section that seeks an increase in
17delivery services rates, an electric utility may propose a
18rate phase-in plan that the Commission shall either approve
19without modification or deny in its final order approving the
20new delivery services rates. A proposed rate phase-in plan
21under this subsection (e) must allow the new delivery services
22rates to be implemented in no more than 2 steps, as follows: in
23the first step, at least 50% of the approved rate increase must
24be reflected in rates, and, in the second step, 100% of the
25rate increase must be reflected in rates. The second step's
26rates must take effect no later than 12 months after the first

 

 

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1step's rates were placed into effect. The portion of the
2approved rate increase not implemented in the first step shall
3be recorded on the electric utility's books as a regulatory
4asset, and shall accrue a carrying cost equal to the weighted
5average cost of capital applicable to the new delivery
6services rates. This portion shall be recovered, with such
7carrying costs, through a surcharge applied to retail customer
8bills that (i) begins no later than 12 months after the date on
9which the second step's rates went into effect and (ii) is
10applied over a period not to exceed 24 months.
11    (f) To mitigate the impact of large expenses on customers,
12an electric utility subject to Section 9-201.1 of this Act may
13elect, in any proceeding under Section 9-201 or Section
149-201.2 of this Act, as applicable, to amortize, over a 5-year
15period, each charge or credit that exceeds the applicable
16amount identified in this Section and that relates to a
17workforce reduction program's severance costs, changes in
18accounting rules, changes in law, compliance with any
19Commission-initiated audit, or a single storm or other similar
20expense, provided that any unamortized balance shall be
21reflected in rate base. An electric utility that serves more
22than 3,000,000 customers in the State may amortize the full
23amount of each such charge or credit that exceeds $10,000,000
24in the applicable period, and an electric utility that serves
25less than 3,000,000 customers in the State may amortize the
26full amount of each such charge or credit that exceeds

 

 

10200SB1100sam001- 387 -LRB102 04924 SPS 24488 a

1$3,700,000 in the applicable period. For purposes of this
2Section, changes in law includes any enactment, repeal, or
3amendment in a law, ordinance, rule, regulation,
4interpretation, permit, license, consent, or order, including
5those relating to taxes, accounting, or to environmental
6matters, or in the interpretation or application thereof by
7any governmental authority occurring after the effective date
8of this amendatory Act of the 102nd General Assembly.
 
9    (220 ILCS 5/9-201.2 new)
10    Sec. 9-201.2. Standards and compliance investigation.
11    (a)(1) The provisions of this Section apply to electric
12utilities that are subject to the provisions of Section
139-201.1 of this Act. Each such electric utility shall file, on
14or before the date prescribed in subsection (b) or (c) of this
15Section, as applicable, a petition with the Commission to
16initiate the standards and compliance investigation proceeding
17proceedings required by this Section. During each such
18proceeding, the Commission shall:
19        (A) investigate and verify, for the applicable
20    calendar year, that the rates charged by the utility under
21    the tariff or tariffs placed into effect pursuant to
22    Section 9-201 or Section 16-108.5 of this Act, as
23    applicable, were consistent with this Act, Commission
24    rules and regulations, and the Commission order or orders
25    establishing or approving those rates;

 

 

10200SB1100sam001- 388 -LRB102 04924 SPS 24488 a

1        (B) examine, during the course of the proceeding, the
2    prudence and reasonableness of the actual costs incurred
3    by the utility during the applicable calendar year that
4    were recovered in rates placed into effect pursuant to
5    Section 9-201 or Section 16-108.5, as applicable, as well
6    as determine the original cost of plant in service as of
7    the end of the applicable calendar year;
8        (C) compare the revenue requirement or requirements
9    established by the rate order or orders in effect from
10    time to time during the applicable calendar year (weighted
11    as applicable) with the actual revenue requirement for
12    such year, which shall be determined using the following:
13            (i) Commission-approved prudent and reasonable
14        actual costs for the applicable year;
15            (ii) a year-end rate base for the applicable year;
16            (iii) the cost of equity, as modified by any
17        adjustments required pursuant to Section 8-514 of this
18        Act, that, at the time of filing the petition to
19        initiate the investigation under subsection (b) or (c)
20        of this Section, as applicable, was approved by the
21        Commission for the utility in its most recent general
22        rate case under Section 9-201 of this Act; and
23            (iv) the utility's actual year-end capital
24        structure for the applicable calendar year, provided
25        that the common equity ratio shall not exceed the
26        common equity ratio that, at the time of filing the

 

 

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1        petition to initiate the investigation under
2        subsection (b) or (c) of this Section, as applicable,
3        was approved by the Commission for the utility in its
4        most recent general rate case under Section 9-201; and
5        (D) calculate the amount of any over-collection or
6    under-collection for such year, which such amount, as
7    approved by the Commission, shall be reflected as a credit
8    against, or recovered as an additional charge to,
9    respectively, with interest calculated at a rate equal to
10    the utility's weighted average cost of capital approved by
11    the Commission for the applicable calendar year, the
12    charges for the next calendar year.
13    (2)(A) The data submitted by an electric utility in
14support of its filings made pursuant to this Section shall be
15based on the utility's applicable filed Federal Energy
16Regulatory Commission (FERC) Form 1, to the extent
17practicable. For purposes of this Section, "FERC Form 1" has
18the meaning set forth in Section 9-201.1 of this Act. Nothing
19in this Section is intended to allow costs that are not
20otherwise recoverable to be recoverable by virtue of inclusion
21in FERC Form 1.
22    (B) Except as provided in subparagraph (A) of this
23paragraph (2), all filings made pursuant to this Section shall
24otherwise include relevant and necessary data and
25documentation that are consistent with the Commission's rules
26applicable to a filing for a general rate increase or any rules

 

 

10200SB1100sam001- 390 -LRB102 04924 SPS 24488 a

1adopted by the Commission to implement this Section.
2Normalization adjustments shall not be required.
3    (3) The Commission shall apply the same evidentiary
4standards, including, but not limited to, those concerning the
5prudence and reasonableness of the costs incurred by the
6utility, to a utility's filing under this Section that are
7applicable to a general rate case filed under Section 9-201 of
8this Act, and shall, after notice and hearing, issue its order
9approving, or approving as modified, the utility's petition no
10later than 210 days after the utility's filing. Except as
11provided in subsection (b) of this Section, the new charges
12shall take effect beginning with the next January monthly
13billing period and remain in effect for 12 months through the
14December monthly billing period.
15    (4) The Commission's determinations of the prudence and
16reasonableness of the costs incurred for the applicable year,
17and of the original cost of plant in service as of the end of
18the applicable calendar year, shall be final upon entry of the
19Commission's order and shall not be subject to reopening,
20reexamination, or collateral attack in any other Commission
21proceeding, case, docket, order, rule or regulation; however,
22nothing in this Section shall prohibit a party from
23petitioning the Commission to rehear or appeal to the courts
24the order pursuant to the provisions of this Act.
25    (b)(1) Except as provided in paragraph (2) of this
26subsection (b), the first annual standards and compliance

 

 

10200SB1100sam001- 391 -LRB102 04924 SPS 24488 a

1investigation proceeding or proceedings conducted under
2subsection (a) of this Section shall determine the final
3accounting and retroactive rate adjustment required by Section
416-108.5 of the Act that applies when an electric utility is no
5longer eligible to annually update its performance-based
6formula rate. Each such utility shall file its first petition
7initiating such proceeding no later than 16 months after the
8date on which the Commission entered its order approving, or
9approving with modification, the utility's most recent update
10to the cost inputs of its performance-based formula rate under
11Section 16-108.5, regardless of whether the utility has filed,
12or the Commission has entered an order approving, a general
13rate case pursuant to Section 9-201 of this Act.
14    The final accounting and retroactive rate adjustment shall
15address each full or partial calendar year period that the
16electric utility's rates remained in effect pursuant to the
17Commission's most recent order under Section 16-108.5 and
18until the time that the utility's new delivery services rates
19took effect pursuant to tariffs placed into effect under
20Section 9-201 of this Act. The electric utility may elect to
21include each such full or partial calendar year period in its
22first annual standards and compliance investigation filing
23submitted pursuant to this subparagraph (A). Alternatively,
24the utility may elect to include only a single full or partial
25calendar period in such filing, and address any remaining full
26or partial calendar year periods requiring a final accounting

 

 

10200SB1100sam001- 392 -LRB102 04924 SPS 24488 a

1and retroactive rate adjustment in a subsequent filing or
2filings submitted pursuant to this subparagraph (A).
3    The provisions and calculation set forth in subsection (a)
4of this Section shall apply to the proceeding or proceedings
5filed in accordance with this paragraph (1); however,
6notwithstanding the provisions of item (v) of subparagraph (C)
7of paragraph (1) or paragraph (3) of subsection (a) of this
8Section, an electric utility shall be permitted to propose to
9the Commission, for one or more of the calendar years included
10in the final accounting and applicable retroactive rate
11adjustment, that any under-collection applicable to that year
12or years be recovered over a period not less than 12 months,
13but not to exceed 36 months. The Commission may approve the
14proposal if it finds that the extended period would lead to
15just and reasonable rates and is in the public interest.
16    (2) Notwithstanding the provisions of paragraph (1) of
17this subsection (b), if at the time an electric utility files
18its first general rate case pursuant to Section 9-201 of this
19Act after the effective date of this amendatory Act of the
20102nd General Assembly, the electric utility has in effect
21Commission-approved tariffs setting forth the final accounting
22and retroactive rate adjustment terms required by Section
2316-108.5 of this Act, the electric utility may instead elect
24to proceed with such final accounting and retroactive rate
25adjustment in a proceeding conducted pursuant to the terms of
26those tariffs rather than in a proceeding conducted pursuant

 

 

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1to the provisions of this Section, and the provisions of this
2Section, other than this paragraph (2) of subsection (b),
3shall not apply to such final accounting and retroactive rate
4adjustment. Additionally, an electric utility that has in
5effect such tariffs may further elect to revise such tariffs
6to:
7        (A) provide that the final accounting and retroactive
8    rate adjustment terms for a given calendar year shall use
9    the cost of common equity and capital structure
10    determinations made by the Commission in its final order
11    in a general rate case filed under Section 9-201 of this
12    Act after the effective date of this amendatory Act of the
13    102nd General Assembly where such final order has been
14    entered on or before the date that the electric utility
15    files its proposed accounting and reconciliation for such
16    year, provided that the common equity ratio in the capital
17    structure may not exceed the electric utility's actual
18    year-end common equity ratio for the applicable calendar
19    year; and
20        (B) permit the electric utility, at its option, to
21    recover any under-collection applicable to the second
22    calendar year reconciled under such final accounting and
23    retroactive rate adjustment terms over a period not less
24    than 12 months, but not to exceed 36 months.
25    (c) Following the electric utility's annual standards and
26investigation proceeding or proceedings submitted pursuant to

 

 

10200SB1100sam001- 394 -LRB102 04924 SPS 24488 a

1subsection (b) of this Section, the utility shall annually
2file a petition to initiate a standards and compliance
3investigation proceeding for each calendar year during which
4delivery services rates were in effect pursuant to a
5Commission order approving the utility's general rate case
6under Section 9-201 of this Act that was issued after the
7effective date of this amendatory Act of the 102nd General
8Assembly. The utility shall annually file the petition no
9later than 120 days following the end of each such calendar
10year. The annual standards and compliance investigation
11proceeding requirement set forth in this subsection (c) shall
12remain in effect for a given electric utility through December
1331, 2027, or the date on which the Commission enters its final
14order in the fifth such proceeding, whichever date is later,
15and shall also apply to new tariffs placed into effect during
16such period to implement any subsequent general rate case
17orders issued by the Commission for a utility subject to this
18Section.
19    (d) An electric utility subject to the requirements of
20this Section shall be required to file a petition to initiate a
21standards and compliance investigation proceeding for the
22first calendar year that its delivery services rates are in
23effect pursuant to a general rate case order issued by the
24Commission after December 31, 2027. The electric utility shall
25notify the Commission in writing prior to the date on which
26such delivery services rates take effect regarding if the

 

 

10200SB1100sam001- 395 -LRB102 04924 SPS 24488 a

1electric utility elects to also be required to file a
2subsequent petition or petitions to initiate a standards and
3compliance investigation proceeding for each subsequent
4calendar year or years during which its delivery services
5rates are in effect pursuant to the same general rate case
6order. If the utility makes this election, it shall be
7required to file any petition or petitions to initiate a
8standards and compliance investigation proceeding for any
9subsequent calendar year or years during which its delivery
10services rates are in effect pursuant to the same general rate
11case order.
12    (e) Electric utilities subject to the requirements of this
13Section shall be permitted to file new or revised tariffs to
14comply with the provisions of, and Commission orders entered
15pursuant to, this Section.
 
16    (220 ILCS 5/9-222.1)  (from Ch. 111 2/3, par. 9-222.1)
17    Sec. 9-222.1. A business enterprise which is located
18within an area designated by a county or municipality as an
19enterprise zone pursuant to the Illinois Enterprise Zone Act,
20located in an Empowerment Zone pursuant to the Energy
21Community Reinvestment Act, or located in a federally
22designated Foreign Trade Zone or Sub-Zone shall be exempt from
23the additional charges added to the business enterprise's
24utility bills as a pass-on of municipal and State utility
25taxes under Sections 9-221 and 9-222 of this Act, to the extent

 

 

10200SB1100sam001- 396 -LRB102 04924 SPS 24488 a

1such charges are exempted by ordinance adopted in accordance
2with paragraph (e) of Section 8-11-2 of the Illinois Municipal
3Code in the case of municipal utility taxes, and to the extent
4such charges are exempted by the percentage specified by the
5Department of Commerce and Economic Opportunity in the case of
6State utility taxes, provided such business enterprise meets
7the following criteria:
8        (1) it (i) makes investments which cause the creation
9    of a minimum of 200 full-time equivalent jobs in Illinois;
10    (ii) makes investments of at least $175,000,000 which
11    cause the creation of a minimum of 150 full-time
12    equivalent jobs in Illinois; (iii) makes investments that
13    cause the retention of a minimum of 300 full-time
14    equivalent jobs in the manufacturing sector, as defined by
15    the North American Industry Classification System, in an
16    area in Illinois in which the unemployment rate is above
17    9% and makes an application to the Department within 3
18    months after the effective date of this amendatory Act of
19    the 96th General Assembly and certifies relocation of the
20    300 full-time equivalent jobs within 48 months after the
21    application; (iv) makes investments which cause the
22    retention of a minimum of 1,000 full-time jobs in
23    Illinois; or (v) makes an application to the Department
24    within 2 months after the effective date of this
25    amendatory Act of the 96th General Assembly and makes
26    investments that cause the retention of a minimum of 500

 

 

10200SB1100sam001- 397 -LRB102 04924 SPS 24488 a

1    full-time equivalent jobs in 2009 and 2010, 675 full-time
2    jobs in Illinois in 2011, 850 full-time jobs in 2012, and
3    750 full-time jobs per year in 2013 through 2017, in the
4    manufacturing sector as defined by the North American
5    Industry Classification System; and
6        (2) it is either (i) located in an Enterprise Zone
7    established pursuant to the Illinois Enterprise Zone Act,
8    (ii) located in an Empowerment Zone pursuant to the Energy
9    Community Reinvestment Act, or (iii) (ii) located in a
10    federally designated Foreign Trade Zone or Sub-Zone and is
11    designated a High Impact Business by the Department of
12    Commerce and Economic Opportunity; and
13        (3) it is certified by the Department of Commerce and
14    Economic Opportunity as complying with the requirements
15    specified in clauses (1) and (2) of this Section.
16    The Department of Commerce and Economic Opportunity shall
17determine the period during which such exemption from the
18charges imposed under Section 9-222 is in effect which shall
19not exceed 30 years or the certified term of the enterprise
20zone, whichever period is shorter, except that the exemption
21period for a business enterprise qualifying under item (iii)
22of clause (1) of this Section shall not exceed 30 years.
23    The Department of Commerce and Economic Opportunity shall
24have the power to promulgate rules and regulations to carry
25out the provisions of this Section including procedures for
26complying with the requirements specified in clauses (1) and

 

 

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1(2) of this Section and procedures for applying for the
2exemptions authorized under this Section; to define the
3amounts and types of eligible investments which business
4enterprises must make in order to receive State utility tax
5exemptions pursuant to Sections 9-222 and 9-222.1 of this Act;
6to approve such utility tax exemptions for business
7enterprises whose investments are not yet placed in service;
8and to require that business enterprises granted tax
9exemptions repay the exempted tax should the business
10enterprise fail to comply with the terms and conditions of the
11certification. However, no business enterprise shall be
12required, as a condition for certification under clause (3) of
13this Section, to attest that its decision to invest under
14clause (1) of this Section and to locate under clause (2) of
15this Section is predicated upon the availability of the
16exemptions authorized by this Section.
17    A business enterprise shall be exempt, in whole or in
18part, from the pass-on charges of municipal utility taxes
19imposed under Section 9-221, only if it meets the criteria
20specified in clauses (1) through (3) of this Section and the
21municipality has adopted an ordinance authorizing the
22exemption under paragraph (e) of Section 8-11-2 of the
23Illinois Municipal Code. Upon certification of the business
24enterprises by the Department of Commerce and Economic
25Opportunity, the Department of Commerce and Economic
26Opportunity shall notify the Department of Revenue of such

 

 

10200SB1100sam001- 399 -LRB102 04924 SPS 24488 a

1certification. The Department of Revenue shall notify the
2public utilities of the exemption status of business
3enterprises from the pass-on charges of State and municipal
4utility taxes. Such exemption status shall be effective within
53 months after certification of the business enterprise.
6(Source: P.A. 97-818, eff. 7-16-12; 98-321, eff. 8-12-13.)
 
7    (220 ILCS 5/9-232 new)
8    Sec. 9-232. General rate case filing and revenue-neutral
9rate design.
10    (a) Beginning on the effective date of this amendatory Act
11of the 102nd General Assembly, a public utility that files a
12general rate case pursuant to Section 9-201 of this Act may
13elect to omit the rate design component of such filing and
14subsequently separately file this component with the
15Commission, subject to the requirements of subsections (b) and
16(c) of this Section.
17    (b) General rate case filing. If the utility makes the
18election described in this Section, then the following
19provisions apply to the general rate case filing made under
20Section 9-201 of this Act:
21        (1) The filing shall be consistent with the rate
22    design and cost allocation across customer classes
23    approved in the Commission's most recent order regarding
24    the utility's request for a general adjustment to its
25    rates under this Section or in the Commission's most

 

 

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1    recent order entered under Section 9-201 or subsection (e)
2    of Section 16-108.5 of this Act, as applicable.
3        (2) The second suspension period of no more than 6
4    months that is identified in subsection (b) of Section
5    9-201 of this Act shall be reduced to a period not to
6    exceed 3 months.
7    (c) Revenue-neutral rate design. If the utility makes the
8election described in this Section, then the following
9provisions apply to the separate filing of the revenue-neutral
10rate design component:
11        (1) No later than one year after the tariffs
12    implementing the general rate case filing described in
13    subsection (b) of this Section are placed into effect, the
14    utility shall make a filing with the Commission that
15    proposes changes to the tariffs to incorporate the
16    findings of any final rate design orders of the Commission
17    applicable to the utility and entered subsequent to the
18    Commission's approval of the tariffs; if no such orders
19    have been entered, then the utility's filing may either
20    propose revenue-neutral tariff changes or refile the
21    existing tariffs without change, which shall present the
22    Commission with an opportunity to suspend the tariffs and
23    consider revenue-neutral tariff changes related to rate
24    design. The Commission shall, after notice and hearing,
25    enter its order approving, or approving with modification,
26    the proposed changes to the tariffs within 240 days after

 

 

10200SB1100sam001- 401 -LRB102 04924 SPS 24488 a

1    the utility's filing. Any changes ordered by the
2    Commission shall become effective at the commencement of
3    the first January monthly billing period that begins no
4    earlier than 30 days after the Commission issues its order
5    adopting such changes.
6        (2) Following Commission approval under paragraph (1)
7    of this subsection (c), the utility shall make a filing
8    with the Commission during each subsequent 3-year period
9    that either proposes revenue-neutral tariff changes or
10    refiles the existing tariffs without change, which shall
11    present the Commission with an opportunity to suspend the
12    tariffs and consider revenue-neutral tariff changes
13    related to rate design. The requirements of this paragraph
14    (2) shall terminate at the time that the utility files a
15    general rate case that includes the rate design component.
 
16    (220 ILCS 5/9-247 new)
17    Sec. 9-247. Expanding bill payment options.
18    (a) The General Assembly finds that, given the growth of
19e-commerce and the common use of online payment mechanisms by
20individual consumers and households, residential customers of
21electric utilities with over 500,000 retail customers in this
22State should be able to pay their utility bills through
23accepted online methods without having to pay transaction fees
24for using that mode of payment. Residential customers' use of
25other accepted modes of paying bills of such utilities also

 

 

10200SB1100sam001- 402 -LRB102 04924 SPS 24488 a

1should not result in transaction fees based on the mode,
2especially because some modes tend disproportionately to be
3used by low-income or unbanked customers. Such electric
4utilities also should undertake practical efforts to expand
5transaction fee-free payment options for low-income and
6unbanked residential customers.
7    For purposes of this Section, "electric utility" and
8"retail customer" have the meanings set forth in Section
916-102 of this Act, and "residential customer" has the meaning
10set forth in Section 16-103.1 of this Act.
11    (b) No later than 240 days after the effective date of this
12amendatory Act of the 102nd General Assembly, electric
13utilities with over 500,000 retail customers in this State:
14(1) shall cease charging residential customers a transaction
15fee or charge based on whether the customer pays their utility
16bill through accepted online payment mechanisms and (2) shall
17not charge residential customers any transaction fee or charge
18based on which accepted payment mode the customer selects.
19    (c) No later than 240 days after the effective date of this
20amendatory Act of the 102nd General Assembly, each electric
21utility with over 500,000 retail customers in this State shall
22submit to the Illinois Commerce Commission the utility's plan
23for expanding, in a reasonable, practical, and cost-effective
24manner, transaction fee-free utility bill payment options for
25low-income and unbanked residential customers. Within 180 days
26after the utility files its plan under this subsection (c),

 

 

10200SB1100sam001- 403 -LRB102 04924 SPS 24488 a

1the Commission shall review and, after notice and hearing,
2enter an order approving the plan if it finds that the plan
3conforms to the requirements of this Section or, if the
4Commission finds that the plan does not conform to the
5requirements of this Section, the Commission must enter an
6order describing in detail the reasons for not approving the
7plan. The utility may resubmit its plan to address the
8Commission's concerns, and the Commission shall expeditiously
9review and by order approve the revised plan if it finds that
10the plan conforms to the requirements of this Section,
11provided that such order shall be entered no later than 90 days
12after the utility resubmits its plan.
13    (d) Nothing in this Section is intended to prohibit the
14utility from recovering through rates approved by the
15Commission the utility's prudent and reasonable costs.
 
16    (220 ILCS 5/16-108)
17    Sec. 16-108. Recovery of costs associated with the
18provision of delivery and other services.
19    (a) An electric utility shall file a delivery services
20tariff with the Commission at least 210 days prior to the date
21that it is required to begin offering such services pursuant
22to this Act. An electric utility shall provide the components
23of delivery services that are subject to the jurisdiction of
24the Federal Energy Regulatory Commission at the same prices,
25terms and conditions set forth in its applicable tariff as

 

 

10200SB1100sam001- 404 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 405 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 406 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 407 -LRB102 04924 SPS 24488 a

1implement such charges for all delivery services customers and
2for all customers described in subsection (h), but shall not
3implement transition charges for power and energy that a
4retail customer takes from cogeneration or self-generation
5facilities located on that retail customer's premises, if such
6facilities meet the following criteria:
7        (i) the cogeneration or self-generation facilities
8    serve a single retail customer and are located on that
9    retail customer's premises (for purposes of this
10    subparagraph and subparagraph (ii), an industrial or
11    manufacturing retail customer and a third party contractor
12    that is served by such industrial or manufacturing
13    customer through such retail customer's own electrical
14    distribution facilities under the circumstances described
15    in subsection (vi) of the definition of "alternative
16    retail electric supplier" set forth in Section 16-102,
17    shall be considered a single retail customer);
18        (ii) the cogeneration or self-generation facilities
19    either (A) are sized pursuant to generally accepted
20    engineering standards for the retail customer's electrical
21    load at that premises (taking into account standby or
22    other reliability considerations related to that retail
23    customer's operations at that site) or (B) if the facility
24    is a cogeneration facility located on the retail
25    customer's premises, the retail customer is the thermal
26    host for that facility and the facility has been designed

 

 

10200SB1100sam001- 408 -LRB102 04924 SPS 24488 a

1    to meet that retail customer's thermal energy requirements
2    resulting in electrical output beyond that retail
3    customer's electrical demand at that premises, comply with
4    the operating and efficiency standards applicable to
5    "qualifying facilities" specified in title 18 Code of
6    Federal Regulations Section 292.205 as in effect on the
7    effective date of this amendatory Act of 1999;
8        (iii) the retail customer on whose premises the
9    facilities are located either has an exclusive right to
10    receive, and corresponding obligation to pay for, all of
11    the electrical capacity of the facility, or in the case of
12    a cogeneration facility that has been designed to meet the
13    retail customer's thermal energy requirements at that
14    premises, an identified amount of the electrical capacity
15    of the facility, over a minimum 5-year period; and
16        (iv) if the cogeneration facility is sized for the
17    retail customer's thermal load at that premises but
18    exceeds the electrical load, any sales of excess power or
19    energy are made only at wholesale, are subject to the
20    jurisdiction of the Federal Energy Regulatory Commission,
21    and are not for the purpose of circumventing the
22    provisions of this subsection (f).
23If a generation facility located at a retail customer's
24premises does not meet the above criteria, an electric utility
25implementing transition charges shall implement a transition
26charge until December 31, 2006 for any power and energy taken

 

 

10200SB1100sam001- 409 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 410 -LRB102 04924 SPS 24488 a

1months, and no later than 12 months, prior to December 31,
22006. The Commission shall hold a hearing on the electric
3utility's petition and shall enter its order no later than 8
4months after the petition is filed. The Commission shall
5determine whether and to what extent the electric utility
6shall be authorized to implement transition charges for an
7additional period. The Commission may authorize the electric
8utility to implement transition charges for some or all of the
9additional period, and shall determine the mitigation factors
10to be used in implementing such transition charges; provided,
11that the Commission shall not authorize mitigation factors
12less than 110% of those in effect during the 12 months ended
13December 31, 2006. In making its determination, the Commission
14shall consider the following factors: the necessity to
15implement transition charges for an additional period in order
16to maintain the financial integrity of the electric utility;
17the prudence of the electric utility's actions in reducing its
18costs since the effective date of this amendatory Act of 1997;
19the ability of the electric utility to provide safe, adequate
20and reliable service to retail customers in its service area;
21and the impact on competition of allowing the electric utility
22to implement transition charges for the additional period.
23    (g) The electric utility shall file tariffs that establish
24the transition charges to be paid by each class of customers to
25the electric utility in conjunction with the provision of
26delivery services. The electric utility's tariffs shall define

 

 

10200SB1100sam001- 411 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 412 -LRB102 04924 SPS 24488 a

1do not take delivery services but that take electric power or
2energy from an alternative retail electric supplier or from an
3electric utility other than the electric utility in whose
4service area the customer is located. Such charges shall be
5calculated, in accordance with the definition of transition
6charges in Section 16-102, for the period of time that the
7customer would be obligated to pay transition charges if it
8were taking delivery services, except that no deduction for
9delivery services revenues shall be made in such calculation,
10and usage data from the customer's class shall be used where
11historical usage data is not available for the individual
12customer. The customer shall be obligated to pay such charges
13on a lump sum basis on or before the date on which the customer
14commences to take service from the alternative retail electric
15supplier or other electric utility, provided, that the
16electric utility in whose service area the customer is located
17shall offer the customer the option of signing a contract
18pursuant to which the customer pays such charges ratably over
19the period in which the charges would otherwise have applied.
20    (i) An electric utility shall be entitled to add to the
21bills of delivery services customers charges pursuant to
22Sections 9-221, 9-222 (except as provided in Section 9-222.1),
23and Section 16-114 of this Act, Section 5-5 of the Electricity
24Infrastructure Maintenance Fee Law, Section 6-5 of the
25Renewable Energy, Energy Efficiency, and Coal Resources
26Development Law of 1997, and Section 13 of the Energy

 

 

10200SB1100sam001- 413 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 414 -LRB102 04924 SPS 24488 a

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

 

 

10200SB1100sam001- 415 -LRB102 04924 SPS 24488 a

1customers, which shall appear as a separate line item on each
2such customer's bill.
3    Notwithstanding whether the Commission has approved the
4initial long-term renewable resources procurement plan as of
5June 1, 2017, an electric utility shall place new tariffed
6charges into effect beginning with the June 2017 monthly
7billing period, to the extent practicable, to begin recovering
8the costs of procuring renewable energy resources, as those
9charges are calculated under the limitations described in
10subparagraph (E) of paragraph (1) of subsection (c) of Section
111-75 of the Illinois Power Agency Act. Notwithstanding the
12date on which the utility places such new tariffed charges
13into effect, the utility shall be permitted to collect the
14charges under such tariff as if the tariff had been in effect
15beginning with the first day of the June 2017 monthly billing
16period. For the delivery years commencing June 1, 2017, June
171, 2018, and June 1, 2019, and June 1, 2020, the electric
18utility shall deposit into a separate interest bearing account
19of a financial institution the monies collected under the
20tariffed charges. Any interest earned shall be credited back
21to retail customers under the reconciliation proceeding
22provided for in this subsection (k), provided that the
23electric utility shall first be reimbursed from the interest
24for the administrative costs that it incurs to administer and
25manage the account. Any taxes due on the funds in the account,
26or interest earned on it, will be paid from the account or, if

 

 

10200SB1100sam001- 416 -LRB102 04924 SPS 24488 a

1insufficient monies are available in the account, from the
2monies collected under the tariffed charges to recover the
3costs of procuring renewable energy resources. Monies
4deposited in the account shall be subject to the review,
5reconciliation, and true-up process described in this
6subsection (k) that is applicable to the funds collected and
7costs incurred for the procurement of renewable energy
8resources.
9    The electric utility shall be entitled to recover all of
10the costs identified in this subsection (k) through automatic
11adjustment clause tariffs applicable to all of the utility's
12retail customers that allow the electric utility to adjust its
13tariffed charges consistent with this subsection (k). The
14determination as to whether any excess funds were collected
15during a given delivery year for the purchase of renewable
16energy resources, and the crediting of any excess funds back
17to retail customers, shall not be made until after the close of
18the delivery year, and the total amount to be paid by the
19electric utility under each contract for the purchase of
20renewable energy credits that is executed pursuant to
21paragraph (1) of subsection (c) of Section 1-75 of the
22Illinois Power Agency Act shall be subtracted from any excess
23funds, regardless of when the payment or payments are due
24under such contracts, so that funding is available for such
25payment, which will ensure that the maximum amount of funds is
26available to implement the approved long-term renewable

 

 

10200SB1100sam001- 417 -LRB102 04924 SPS 24488 a

1resources procurement plan during a given delivery year. The
2electric utility's collections under such automatic adjustment
3clause tariffs to recover the costs of renewable energy
4resources and zero emission credits from zero emission
5facilities shall be subject to separate annual review,
6reconciliation, and true-up against actual costs by the
7Commission under a procedure that shall be specified in the
8electric utility's automatic adjustment clause tariffs and
9that shall be approved by the Commission in connection with
10its approval of such tariffs. The procedure shall provide that
11any difference between the electric utility's collections
12under the automatic adjustment charges for an annual period
13and the electric utility's actual costs of renewable energy
14resources and zero emission credits from zero emission
15facilities for that same annual period shall be refunded to or
16collected from, as applicable, the electric utility's retail
17customers in subsequent periods.
18    Nothing in this subsection (k) is intended to affect,
19limit, or change the right of the electric utility to recover
20the costs associated with the procurement of renewable energy
21resources for periods commencing before, on, or after June 1,
222017, as otherwise provided in the Illinois Power Agency Act.
23    Notwithstanding anything to the contrary, the Commission
24shall not conduct an annual review, reconciliation, and
25true-up associated with renewable energy resources'
26collections and costs for the delivery years commencing June

 

 

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11, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and June
21, 2021, and shall instead conduct a single review,
3reconciliation, and true-up associated with renewable energy
4resources' collections and costs for the 5-year 4-year period
5beginning June 1, 2017 and ending May 31, 2022 2021, provided
6that the review, reconciliation, and true-up shall not be
7initiated until after August 31, 2022 2021. During the 5-year
84-year period, the utility shall be permitted to collect and
9retain funds under this subsection (k) and to purchase
10renewable energy resources under an approved long-term
11renewable resources procurement plan using those funds
12regardless of the delivery year in which the funds were
13collected during the 5-year 4-year period. Notwithstanding
14anything to the contrary, (i) immediately after the effective
15date of this amendatory Act of the 102nd General Assembly, the
16Agency shall be permitted to use a combined total of
17$100,000,000 of such retained utility funds for purposes of
18funding the Illinois Solar for All Program under subsection
19(b) of Section 1-56 of the Public Utilities Act, and (ii) no
20later than 60 days after the effective date of this amendatory
21Act of the 102nd General Assembly, a combined total of
22$5,000,000 of such retained utility funds shall be deposited
23by the utilities in the Illinois Works Fund for the purposes
24and activities described in subsection (f) of Section 20-15 of
25the Illinois Works Jobs Act Program Act. Each electric
26utility's pro rata portion of such $5,000,000 shall be

 

 

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1calculated in accordance with the electric utility renewable
2energy credit cost allocation percentages identified in the
3Agency's most recent long-term renewable resources procurement
4plan approved by the Commission.
5    If the amount of funds collected during the delivery year
6commencing June 1, 2017, exceeds the costs incurred during
7that delivery year, then up to half of this excess amount, as
8calculated on June 1, 2018, may be used to fund the programs
9under subsection (b) of Section 1-56 of the Illinois Power
10Agency Act in the same proportion the programs are funded
11under that subsection (b). However, any amount identified
12under this subsection (k) to fund programs under subsection
13(b) of Section 1-56 of the Illinois Power Agency Act shall be
14reduced if it exceeds the funding shortfall. For purposes of
15this Section, "funding shortfall" means the difference between
16$200,000,000 and the amount appropriated by the General
17Assembly to the Illinois Power Agency Renewable Energy
18Resources Fund during the period that commences on the
19effective date of this amendatory act of the 99th General
20Assembly and ends on August 1, 2018.
21    If the amount of funds collected during the delivery year
22commencing June 1, 2018, exceeds the costs incurred during
23that delivery year, then up to half of this excess amount, as
24calculated on June 1, 2019, may be used to fund the programs
25under subsection (b) of Section 1-56 of the Illinois Power
26Agency Act in the same proportion the programs are funded

 

 

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1under that subsection (b). However, any amount identified
2under this subsection (k) to fund programs under subsection
3(b) of Section 1-56 of the Illinois Power Agency Act shall be
4reduced if it exceeds the funding shortfall.
5    If the amount of funds collected during the delivery year
6commencing June 1, 2019, exceeds the costs incurred during
7that delivery year, then up to half of this excess amount, as
8calculated on June 1, 2020, may be used to fund the programs
9under subsection (b) of Section 1-56 of the Illinois Power
10Agency Act in the same proportion the programs are funded
11under that subsection (b). However, any amount identified
12under this subsection (k) to fund programs under subsection
13(b) of Section 1-56 of the Illinois Power Agency Act shall be
14reduced if it exceeds the funding shortfall.
15    If the amount of funds collected during the delivery year
16commencing June 1, 2020, exceeds the costs incurred during
17that delivery year, then up to half of this excess amount, as
18calculated on June 1, 2021, may be used to fund the programs
19under subsection (b) of Section 1-56 of the Illinois Power
20Agency Act in the same proportion the programs are funded
21under that subsection (b). However, any amount identified
22under this subsection (k) to fund programs under subsection
23(b) of Section 1-56 of the Illinois Power Agency Act shall be
24reduced if it exceeds the funding shortfall.
25    The funding available under this subsection (k), if any,
26for the programs described under subsection (b) of Section

 

 

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11-56 of the Illinois Power Agency Act shall not reduce the
2amount of funding for the programs described in subparagraph
3(O) of paragraph (1) of subsection (c) of Section 1-75 of the
4Illinois Power Agency Act. If funding is available under this
5subsection (k) for programs described under subsection (b) of
6Section 1-56 of the Illinois Power Agency Act, then the
7long-term renewable resources plan shall provide for the
8Agency to procure contracts in an amount that does not exceed
9the funding, and the contracts approved by the Commission
10shall be executed by the applicable utility or utilities.
11    (l) A utility that has terminated any contract executed
12under subsection (d-5) of Section 1-75 of the Illinois Power
13Agency Act shall be entitled to recover any remaining balance
14associated with the purchase of zero emission credits prior to
15such termination, and such utility shall also apply a credit
16to its retail customer bills in the event of any
17over-collection.
18        (m)(1) An electric utility that recovers its costs of
19    procuring zero emission credits from zero emission
20    facilities through a cents-per-kilowatthour charge under
21    to subsection (k) of this Section shall be subject to the
22    requirements of this subsection (m). Notwithstanding
23    anything to the contrary, such electric utility shall,
24    beginning on April 30, 2018, and each April 30 thereafter
25    until April 30, 2026, calculate whether any reduction must
26    be applied to such cents-per-kilowatthour charge that is

 

 

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1    paid by retail customers of the electric utility that are
2    exempt from subsections (a) through (j) of Section 8-103B
3    of this Act under subsection (l) of Section 8-103B. Such
4    charge shall be reduced for such customers for the next
5    delivery year commencing on June 1 based on the amount
6    necessary, if any, to limit the annual estimated average
7    net increase for the prior calendar year due to the future
8    energy investment costs to no more than 1.3% of 5.98 cents
9    per kilowatt-hour, which is the average amount paid per
10    kilowatthour for electric service during the year ending
11    December 31, 2015 by Illinois industrial retail customers,
12    as reported to the Edison Electric Institute.
13        The calculations required by this subsection (m) shall
14    be made only once for each year, and no subsequent rate
15    impact determinations shall be made.
16        (2) For purposes of this Section, "future energy
17    investment costs" shall be calculated by subtracting the
18    cents-per-kilowatthour charge identified in subparagraph
19    (A) of this paragraph (2) from the sum of the
20    cents-per-kilowatthour charges identified in subparagraph
21    (B) of this paragraph (2):
22            (A) The cents-per-kilowatthour charge identified
23        in the electric utility's tariff placed into effect
24        under Section 8-103 of the Public Utilities Act that,
25        on December 1, 2016, was applicable to those retail
26        customers that are exempt from subsections (a) through

 

 

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1        (j) of Section 8-103B of this Act under subsection (l)
2        of Section 8-103B.
3            (B) The sum of the following
4        cents-per-kilowatthour charges applicable to those
5        retail customers that are exempt from subsections (a)
6        through (j) of Section 8-103B of this Act under
7        subsection (l) of Section 8-103B, provided that if one
8        or more of the following charges has been in effect and
9        applied to such customers for more than one calendar
10        year, then each charge shall be equal to the average of
11        the charges applied over a period that commences with
12        the calendar year ending December 31, 2017 and ends
13        with the most recently completed calendar year prior
14        to the calculation required by this subsection (m):
15                (i) the cents-per-kilowatthour charge to
16            recover the costs incurred by the utility under
17            subsection (d-5) of Section 1-75 of the Illinois
18            Power Agency Act, adjusted for any reductions
19            required under this subsection (m); and
20                (ii) the cents-per-kilowatthour charge to
21            recover the costs incurred by the utility under
22            Section 16-107.6 of the Public Utilities Act.
23            If no charge was applied for a given calendar year
24        under item (i) or (ii) of this subparagraph (B), then
25        the value of the charge for that year shall be zero.
26        (3) If a reduction is required by the calculation

 

 

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1    performed under this subsection (m), then the amount of
2    the reduction shall be multiplied by the number of years
3    reflected in the averages calculated under subparagraph
4    (B) of paragraph (2) of this subsection (m). Such
5    reduction shall be applied to the cents-per-kilowatthour
6    charge that is applicable to those retail customers that
7    are exempt from subsections (a) through (j) of Section
8    8-103B of this Act under subsection (l) of Section 8-103B
9    beginning with the next delivery year commencing after the
10    date of the calculation required by this subsection (m).
11        (4) The electric utility shall file a notice with the
12    Commission on May 1 of 2018 and each May 1 thereafter until
13    May 1, 2026 containing the reduction, if any, which must
14    be applied for the delivery year which begins in the year
15    of the filing. The notice shall contain the calculations
16    made pursuant to this Section. By October 1 of each year
17    beginning in 2018, each electric utility shall notify the
18    Commission if it appears, based on an estimate of the
19    calculation required in this subsection (m), that a
20    reduction will be required in the next year.
21(Source: P.A. 99-906, eff. 6-1-17.)
 
22    (220 ILCS 5/16-108.13 new)
23    Sec. 16-108.13. Energy industry workforce development and
24job training program.
25    (a) The General Assembly finds and declares that

 

 

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1forward-thinking workforce development and job training
2programs are needed to support the infrastructure investments
3modernizing Illinois' electric grid and the adoption and
4deployment of cost-effective distributed energy resources
5throughout the State, which stimulate economic growth, enhance
6the continued diversification of Illinois' energy resource
7mix, and protect the Illinois environment. Specifically, job
8training programs that develop the skills needed to strengthen
9the State's workforce will ensure it is poised to take
10advantage of the jobs being created in new and innovative
11fields and technologies related to the energy industry. The
12General Assembly also finds that job training programs should
13bring together electric utilities and charitable organizations
14that provide direct and sustained support for all members of
15the communities in need, including members of economically
16disadvantaged communities, environmental justice communities,
17disproportionately impacted areas, returning citizens, foster
18care communities, and displaced fossil fuel and nuclear plant
19workers to enter and complete the pipeline for energy
20industry-related jobs.
21    The General Assembly further finds that the State's
22electric utilities are developing, or already implementing,
23successful workforce development and job training programs
24that are needed to support the clean energy jobs created by
25this amendatory Act of the General Assembly and those created
26by Public Act 99-906. Electric utilities that are already

 

 

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1implementing these programs have demonstrated great success in
2expanding job opportunities for local minority candidates.
3Among the benefits and features of the workforce development
4and job training programs already being offered by electric
5utilities, the General Assembly finds that the multi-month
6training programs effectively bring together utilities,
7businesses, labor, and community organizations to develop the
8skills needed to strengthen the State's workforce and ensure
9it is well-positioned to take advantage of the quality
10construction, solar power, and energy efficiency jobs being
11created in new and innovative clean energy-related fields.
12    The General Assembly therefore finds that the electric
13utilities subject to the requirements of this Section should
14expand their workforce development and job training programs,
15in partnership with charitable organizations, for the purpose
16of teaching program participants the skills required to apply
17and qualify for jobs in clean energy-related fields, as set
18forth in this Section.
19    (b) An electric utility that serves more than 3,000,000
20customers in the State shall file with the Commission the
21utility's plan to expand its existing workforce development
22and job training program that provides training for energy
23industry-related jobs. Each plan shall commence within 90 days
24after the issuance of the Commission's order approving the
25utility's plan, and shall extend for a 10-year period
26following the date of commencement. Each annual period or year

 

 

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1under the plan shall conform to the 365 day period established
2by the date the plan commenced.
3    Each plan shall include the following components:
4        (1) One or more partnerships with a charitable
5    organization for purposes of implementing the plan;
6        (2) The training programs to be offered under the
7    plan, which shall focus on the skills needed to succeed in
8    clean energy-related fields; at least 10 job training
9    sessions shall be held throughout the State per year, and
10    each session shall target a minimum of 24 participants per
11    session, provided that at least 2 of the 10 job training
12    sessions shall be held in counties with a population
13    greater than 3,000,000, and target a minimum of 48
14    participants;
15        (3) Creation of a robust and diverse talent pipeline
16    consistent with subsection (a) of this Section; and
17        (4) Funding by the utility in an amount of not less
18    than $5,000,000 per year that is allocated to
19    participating charitable organizations to cover their
20    administrative costs and costs of providing services or
21    stipends to participants to assist participants with the
22    expenses related to attending a job training session,
23    including, but not limited to, the following:
24    transportation, child care, temporary relocation, and lost
25    wages due to attendance.
26    The electric utility shall be responsible for the design,

 

 

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1development, and filing of its plan with the Commission under
2this subsection, and may, as part of that implementation,
3outsource various aspects of program development and
4implementation, including, but not limited to, the charitable
5organizations identified in paragraph (1) of this subsection.
6    (c) The utility's annual costs to fund charitable
7organizations pursuant to paragraph (4) of subsection (b) of
8this Section shall be recovered from the amounts collected by
9the utility under its tariff placed into effect under
10subsection (k) of Section 16-108 of this Act to recover the
11costs of renewable energy resources. The utility shall be
12entitled to net its funding costs incurred under such
13paragraph (4) against such amounts collected under subsection
14(k) of Section 16-108 and to retain those netted amounts to
15fully recover its funding costs incurred under such paragraph
16(4).
 
17    (220 ILCS 5/16-111.5)
18    Sec. 16-111.5. Provisions relating to procurement.
19    (a) An electric utility that on December 31, 2005 served
20at least 100,000 customers in Illinois shall procure power and
21energy for its eligible retail customers in accordance with
22the applicable provisions set forth in Section 1-75 of the
23Illinois Power Agency Act and this Section. Beginning with the
24delivery year commencing on June 1, 2017, such electric
25utility shall also procure zero emission credits from zero

 

 

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1emission facilities in accordance with the applicable
2provisions set forth in Section 1-75 of the Illinois Power
3Agency Act, and, for years beginning on or after June 1, 2017,
4the utility shall procure renewable energy resources in
5accordance with the applicable provisions set forth in Section
61-75 of the Illinois Power Agency Act and this Section.
7Beginning with the delivery year that is the subject of an
8electric utility's election approved by the Commission
9pursuant to paragraph (6) of subsection (b) of this Section,
10as applicable, such electric utility shall procure capacity
11for all of its retail customers in accordance with the
12applicable provisions set forth in this Section and subsection
13(k) of Section 1-75 of the Illinois Power Agency Act. A small
14multi-jurisdictional electric utility that on December 31,
152005 served less than 100,000 customers in Illinois may elect
16to procure power and energy for all or a portion of its
17eligible Illinois retail customers in accordance with the
18applicable provisions set forth in this Section and Section
191-75 of the Illinois Power Agency Act. This Section shall not
20apply to a small multi-jurisdictional utility until such time
21as a small multi-jurisdictional utility requests the Illinois
22Power Agency to prepare a procurement plan for its eligible
23retail customers. "Eligible retail customers" for the purposes
24of this Section means those retail customers that purchase
25power and energy from the electric utility under fixed-price
26bundled service tariffs, other than those retail customers

 

 

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1whose service is declared or deemed competitive under Section
216-113 and those other customer groups specified in this
3Section, including self-generating customers, customers
4electing hourly pricing, or those customers who are otherwise
5ineligible for fixed-price bundled tariff service. For those
6customers that are excluded from the procurement plan's
7electric supply service requirements, and the utility shall
8procure any supply requirements, including capacity, ancillary
9services, and hourly priced energy, in the applicable markets
10as needed to serve those customers, provided that the utility
11may include in its procurement plan load requirements for the
12load that is associated with those retail customers whose
13service has been declared or deemed competitive pursuant to
14Section 16-113 of this Act to the extent that those customers
15are purchasing power and energy during one of the transition
16periods identified in subsection (b) of Section 16-113 of this
17Act.
18    (b) A procurement plan shall be prepared for each electric
19utility consistent with the applicable requirements of the
20Illinois Power Agency Act and this Section. For purposes of
21this Section, Illinois electric utilities that are affiliated
22by virtue of a common parent company are considered to be a
23single electric utility. Small multi-jurisdictional utilities
24may request a procurement plan for a portion of or all of its
25Illinois load. Each procurement plan shall analyze the
26projected balance of supply and demand for those retail

 

 

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1customers to be included in the plan's electric supply service
2requirements over a 5-year period, with the first planning
3year beginning on June 1 of the year following the year in
4which the plan is filed. The plan shall specifically identify,
5if applicable, the carbon-free capacity to be procured, as
6described in Section 1-75 of the Illinois Power Agency Act,
7and the wholesale products to be procured following plan
8approval, and shall follow all the requirements set forth in
9the Public Utilities Act and all applicable State and federal
10laws, statutes, rules, or regulations, as well as Commission
11orders. Nothing in this Section precludes consideration of
12contracts longer than 5 years and related forecast data.
13Unless specified otherwise in this Section, in the procurement
14plan or in the implementing tariff, any procurement occurring
15in accordance with this plan shall be competitively bid
16through a request for proposals process. Approval and
17implementation of the procurement plan shall be subject to
18review and approval by the Commission according to the
19provisions set forth in this Section. A procurement plan shall
20include each of the following components:
21        (1) Hourly load analysis. This analysis shall include:
22            (i) multi-year historical analysis of hourly
23        loads;
24            (ii) switching trends and competitive retail
25        market analysis;
26            (iii) known or projected changes to future loads;

 

 

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1        and
2            (iv) growth forecasts by customer class.
3        (2) Analysis of the impact of any demand side and
4    renewable energy initiatives. This analysis shall include:
5            (i) the impact of demand response programs and
6        energy efficiency programs, both current and
7        projected; for small multi-jurisdictional utilities,
8        the impact of demand response and energy efficiency
9        programs approved pursuant to Section 8-408 of this
10        Act, both current and projected; and
11            (ii) supply side needs that are projected to be
12        offset by purchases of renewable energy resources, if
13        any.
14        (3) A plan for meeting the expected load requirements
15    that will not be met through preexisting contracts. This
16    plan shall include:
17            (i) definitions of the different Illinois retail
18        customer classes for which supply is being purchased;
19            (ii) the proposed mix of demand-response products
20        for which contracts will be executed during the next
21        year. For small multi-jurisdictional electric
22        utilities that on December 31, 2005 served fewer than
23        100,000 customers in Illinois, these shall be defined
24        as demand-response products offered in an energy
25        efficiency plan approved pursuant to Section 8-408 of
26        this Act. The cost-effective demand-response measures

 

 

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1        shall be procured whenever the cost is lower than
2        procuring comparable capacity products, provided that
3        such products shall:
4                (A) be procured by a demand-response provider
5            from those retail customers included in the plan's
6            electric supply service requirements;
7                (B) at least satisfy the demand-response
8            requirements of the regional transmission
9            organization market in which the utility's service
10            territory is located, including, but not limited
11            to, any applicable capacity or dispatch
12            requirements;
13                (C) provide for customers' participation in
14            the stream of benefits produced by the
15            demand-response products;
16                (D) provide for reimbursement by the
17            demand-response provider of the utility for any
18            costs incurred as a result of the failure of the
19            supplier of such products to perform its
20            obligations thereunder; and
21                (E) meet the same credit requirements as apply
22            to suppliers of capacity, in the applicable
23            regional transmission organization market;
24            (iii) monthly forecasted system supply
25        requirements, including expected minimum, maximum, and
26        average values for the planning period;

 

 

10200SB1100sam001- 434 -LRB102 04924 SPS 24488 a

1            (iv) the proposed mix and selection of standard
2        wholesale products for which contracts will be
3        executed during the next year, separately or in
4        combination, to meet that portion of its load
5        requirements not met through preexisting pre-existing
6        contracts, including but not limited to monthly 5 x 16
7        peak period block energy, monthly off-peak wrap
8        energy, monthly 7 x 24 energy, annual 5 x 16 energy,
9        annual off-peak wrap energy, annual 7 x 24 energy,
10        monthly capacity, annual capacity, peak load capacity
11        obligations, capacity purchase plan, and ancillary
12        services;
13            (v) proposed term structures for each wholesale
14        product type included in the proposed procurement plan
15        portfolio of products; and
16            (vi) an assessment of the price risk, load
17        uncertainty, and other factors that are associated
18        with the proposed procurement plan; this assessment,
19        to the extent possible, shall include an analysis of
20        the following factors: contract terms, time frames for
21        securing products or services, fuel costs, weather
22        patterns, transmission costs, market conditions, and
23        the governmental regulatory environment; the proposed
24        procurement plan shall also identify alternatives for
25        those portfolio measures that are identified as having
26        significant price risk; and .

 

 

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1            (vii) if applicable, the amount of capacity
2        procured for each year through the procurements in
3        subsection (k) of Section 1-75 of the Illinois Power
4        Agency Act and this Section, and the amount of
5        capacity to be procured from each procurement during
6        the next year.
7        (4) Proposed procedures for balancing loads. The
8    procurement plan shall include, for load requirements
9    included in the procurement plan, the process for (i)
10    hourly balancing of supply and demand and (ii) the
11    criteria for portfolio re-balancing in the event of
12    significant shifts in load.
13        (5) Long-Term Renewable Resources Procurement Plan.
14    The Agency shall prepare a long-term renewable resources
15    procurement plan for the procurement of renewable energy
16    credits under Sections 1-56 and 1-75 of the Illinois Power
17    Agency Act for delivery beginning in the 2017 delivery
18    year.
19            (i) The initial long-term renewable resources
20        procurement plan and all subsequent revisions shall be
21        subject to review and approval by the Commission. For
22        the purposes of this Section, "delivery year" has the
23        same meaning as in Section 1-10 of the Illinois Power
24        Agency Act. For purposes of this Section, "Agency"
25        shall mean the Illinois Power Agency.
26            (ii) The long-term renewable resources planning

 

 

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1        process shall be conducted as follows:
2                (A) Electric utilities shall provide a range
3            of load forecasts to the Illinois Power Agency
4            within 45 days of the Agency's request for
5            forecasts, which request shall specify the length
6            and conditions for the forecasts including, but
7            not limited to, the quantity of distributed
8            generation expected to be interconnected for each
9            year.
10                (B) The Agency shall publish for comment the
11            initial long-term renewable resources procurement
12            plan no later than 120 days after the effective
13            date of this amendatory Act of the 99th General
14            Assembly and shall review, and may revise, the
15            plan at least every 2 years thereafter. To the
16            extent practicable, the Agency shall review and
17            propose any revisions to the long-term renewable
18            energy resources procurement plan in conjunction
19            with the Agency's other planning and approval
20            processes conducted under this Section. The
21            initial long-term renewable resources procurement
22            plan shall:
23                    (aa) Identify the procurement programs and
24                competitive procurement events consistent with
25                the applicable requirements of the Illinois
26                Power Agency Act. The plan, and any revisions

 

 

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1                thereto, and shall be designed to achieve the
2                goals set forth in subsection (c) of Section
3                1-75 of that Act, and shall also allocate and
4                use, for each year of the plan, a material
5                portion of any balance of unspent and
6                uncommitted funds collected during prior years
7                that are still retained by the utility under
8                subsection (k) of Section 16-108 of this Act.
9                Such balance need not be allocated equally
10                over the planning horizon, but a material
11                portion of such funding should be allocated
12                and used for each year of the planning
13                horizon.
14                    (bb) Include a schedule for procurements
15                for renewable energy credits from
16                utility-scale wind projects, utility-scale
17                solar projects, and brownfield site
18                photovoltaic projects consistent with
19                subparagraph (G) of paragraph (1) of
20                subsection (c) of Section 1-75 of the Illinois
21                Power Agency Act.
22                    (cc) Identify the process whereby the
23                Agency will submit to the Commission for
24                review and approval the proposed contracts to
25                implement the programs required by such plan.
26                Copies of the initial long-term renewable

 

 

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1            resources procurement plan and all subsequent
2            revisions shall be posted and made publicly
3            available on the Agency's and Commission's
4            websites, and copies shall also be provided to
5            each affected electric utility. An affected
6            utility and other interested parties shall have 45
7            days following the date of posting to provide
8            comment to the Agency on the initial long-term
9            renewable resources procurement plan and all
10            subsequent revisions. All comments submitted to
11            the Agency shall be specific, supported by data or
12            other detailed analyses, and, if objecting to all
13            or a portion of the procurement plan, accompanied
14            by specific alternative wording or proposals. All
15            comments shall be posted on the Agency's and
16            Commission's websites. During this 45-day comment
17            period, the Agency shall hold at least one public
18            hearing within each utility's service area that is
19            subject to the requirements of this paragraph (5)
20            for the purpose of receiving public comment.
21            Within 21 days following the end of the 45-day
22            review period, the Agency may revise the long-term
23            renewable resources procurement plan based on the
24            comments received and shall file the plan with the
25            Commission for review and approval.
26                (C) Within 14 days after the filing of the

 

 

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1            initial long-term renewable resources procurement
2            plan or any subsequent revisions, any person
3            objecting to the plan may file an objection with
4            the Commission. Within 21 days after the filing of
5            the plan, the Commission shall determine whether a
6            hearing is necessary. The Commission shall enter
7            its order confirming or modifying the initial
8            long-term renewable resources procurement plan or
9            any subsequent revisions within 120 days after the
10            filing of the plan by the Illinois Power Agency.
11                (D) The Commission shall approve the initial
12            long-term renewable resources procurement plan and
13            any subsequent revisions, including expressly the
14            forecast used in the plan and taking into account
15            that funding will be limited to the amount of
16            revenues actually collected by the utilities, if
17            the Commission determines that the plan will
18            reasonably and prudently accomplish the
19            requirements of Section 1-56 and subsection (c) of
20            Section 1-75 of the Illinois Power Agency Act. The
21            Commission shall also approve the process for the
22            submission, review, and approval of the proposed
23            contracts to procure renewable energy credits or
24            implement the programs authorized by the
25            Commission pursuant to a long-term renewable
26            resources procurement plan approved under this

 

 

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1            Section.
2            (iii) The Agency or third parties contracted by
3        the Agency shall implement all programs authorized by
4        the Commission in an approved long-term renewable
5        resources procurement plan without further review and
6        approval by the Commission. Third parties shall not
7        begin implementing any programs or receive any payment
8        under this Section until the Commission has approved
9        the contract or contracts under the process authorized
10        by the Commission in item (D) of subparagraph (ii) of
11        paragraph (5) of this subsection (b) and the third
12        party and the Agency or utility, as applicable, have
13        executed the contract. For those renewable energy
14        credits subject to procurement through a competitive
15        bid process under the plan or under the initial
16        forward procurements for wind and solar resources
17        described in subparagraph (G) of paragraph (1) of
18        subsection (c) of Section 1-75 of the Illinois Power
19        Agency Act, the Agency shall follow the procurement
20        process specified in the provisions relating to
21        electricity procurement in subsections (e) through (i)
22        of this Section.
23            (iv) An electric utility shall recover its costs
24        associated with the procurement of renewable energy
25        credits under this Section through an automatic
26        adjustment clause tariff under subsection (k) of

 

 

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1        Section 16-108 of this Act. A utility shall not be
2        required to advance any payment or pay any amounts
3        under this Section that exceed the actual amount of
4        revenues collected by the utility under paragraph (6)
5        of subsection (c) of Section 1-75 of the Illinois
6        Power Agency Act and subsection (k) of Section 16-108
7        of this Act, and contracts executed under this Section
8        shall expressly incorporate this limitation.
9            (v) For the public interest, safety, and welfare,
10        the Agency and the Commission may adopt rules to carry
11        out the provisions of this Section on an emergency
12        basis immediately following the effective date of this
13        amendatory Act of the 99th General Assembly.
14            (vi) On or before July 1 of each year, the
15        Commission shall hold an informal hearing for the
16        purpose of receiving comments on the prior year's
17        procurement process and any recommendations for
18        change.
19        (6) Fixed Resource Requirement Alternative Election.
20    The Commission shall, after notice and hearing, approve an
21    electric utility's request for approval of an election to
22    use the Fixed Resource Requirement Alternative as provided
23    for in the Open Access Transmission Tariff, Reliability
24    Assurance Agreement, and manuals of PJM Interconnection,
25    LLC or its successors if it determines that the election
26    serves as means of satisfying the PJM resource adequacy

 

 

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1    requirements. The Commission shall issue its final order
2    no later than 90 days after receipt of the electric
3    utility's petition. The fact that an electric utility
4    declines to make the election described in this paragraph
5    and paragraph (1) of subsection (k) of Section 1-75 of the
6    Illinois Power Agency Act cannot, and shall not, serve as
7    a basis for any Commission finding of imprudence,
8    unreasonableness, or disallowance in any Commission
9    proceeding.
10        (7) Capacity Procurement Plan.
11            (i) No later than 90 days after an electric
12        utility's notice of election of the Fixed Resource
13        Requirement Alternative as provided for in the Open
14        Access Transmission Tariff, Reliability Assurance
15        Agreement, and manuals of PJM Interconnection, LLC or
16        its successors is approved by the Commission, the
17        Agency shall publish for public comment a draft
18        Capacity Procurement Plan pursuant to subsection (k)
19        of Section 1-75 of the Illinois Power Agency Act. The
20        Agency shall conduct at least one public workshop to
21        elicit input regarding development of the Plan. The
22        Agency shall provide 60 days for public comment on the
23        draft Plan, and within 30 days of the deadline for
24        comment shall submit the Plan to the Commission.
25            (ii) After providing appropriate opportunities for
26        objection, proposed modifications, and hearing, the

 

 

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1        Commission shall enter its order approving or
2        modifying the Plan within 60 days after the filing of
3        the Plan by the Agency. The Commission shall approve
4        the Plan if it meets the objectives set forth in
5        subsection (k) of Section 1-75 of the Illinois Power
6        Agency Act. If the Plan does not meet those
7        objectives, the Commission shall modify the Plan or
8        shall provide specific direction to the Agency to
9        modify and resubmit the Plan within 30 days.
10    (c) The procurement process set forth in Section 1-75 of
11the Illinois Power Agency Act and subsection (e) of this
12Section shall be administered by a procurement administrator
13and monitored by a procurement monitor.
14        (1) The procurement administrator shall:
15            (i) design the final procurement process in
16        accordance with Section 1-75 of the Illinois Power
17        Agency Act and subsection (e) of this Section
18        following Commission approval of the procurement plan;
19            (ii) develop benchmarks in accordance with
20        subsection (e)(3) to be used to evaluate bids; these
21        benchmarks shall be submitted to the Commission for
22        review and approval on a confidential basis prior to
23        the procurement event;
24            (iii) serve as the interface between the electric
25        utility and suppliers;
26            (iv) manage the bidder pre-qualification and

 

 

10200SB1100sam001- 444 -LRB102 04924 SPS 24488 a

1        registration process;
2            (v) obtain the electric utilities' agreement to
3        the final form of all supply contracts and credit
4        collateral agreements;
5            (vi) administer the request for proposals process;
6            (vii) have the discretion to negotiate to
7        determine whether bidders are willing to lower the
8        price of bids that meet the benchmarks approved by the
9        Commission; any post-bid negotiations with bidders
10        shall be limited to price only and shall be completed
11        within 24 hours after opening the sealed bids and
12        shall be conducted in a fair and unbiased manner; in
13        conducting the negotiations, there shall be no
14        disclosure of any information derived from proposals
15        submitted by competing bidders; if information is
16        disclosed to any bidder, it shall be provided to all
17        competing bidders;
18            (viii) maintain confidentiality of supplier and
19        bidding information in a manner consistent with all
20        applicable laws, rules, regulations, and tariffs;
21            (ix) submit a confidential report to the
22        Commission recommending acceptance or rejection of
23        bids;
24            (x) notify the utility of contract counterparties
25        and contract specifics; and
26            (xi) administer related contingency procurement

 

 

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1        events.
2        (2) The procurement monitor, who shall be retained by
3    the Commission, shall:
4            (i) monitor interactions among the procurement
5        administrator, suppliers, and utility;
6            (ii) monitor and report to the Commission on the
7        progress of the procurement process;
8            (iii) provide an independent confidential report
9        to the Commission regarding the results of the
10        procurement event;
11            (iv) assess compliance with the procurement plans
12        approved by the Commission for each utility that on
13        December 31, 2005 provided electric service to at
14        least 100,000 customers in Illinois and for each small
15        multi-jurisdictional utility that on December 31, 2005
16        served less than 100,000 customers in Illinois;
17            (v) preserve the confidentiality of supplier and
18        bidding information in a manner consistent with all
19        applicable laws, rules, regulations, and tariffs;
20            (vi) provide expert advice to the Commission and
21        consult with the procurement administrator regarding
22        issues related to procurement process design, rules,
23        protocols, and policy-related matters; and
24            (vii) consult with the procurement administrator
25        regarding the development and use of benchmark
26        criteria, standard form contracts, credit policies,

 

 

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1        and bid documents.
2    (d) Except as provided in subsection (j), the planning
3process shall be conducted as follows:
4        (1) Beginning in 2008, each Illinois utility procuring
5    power pursuant to this Section shall annually provide a
6    range of load forecasts to the Illinois Power Agency by
7    July 15 of each year, or such other date as may be required
8    by the Commission or Agency. The load forecasts shall
9    cover the 5-year procurement planning period for the next
10    procurement plan and shall include hourly data
11    representing a high-load, low-load, and expected-load
12    scenario for the load of those retail customers included
13    in the plan's electric supply service requirements. The
14    utility shall provide supporting data and assumptions for
15    each of the scenarios.
16        (2) Beginning in 2008, the Illinois Power Agency shall
17    prepare a procurement plan by August 15th of each year, or
18    such other date as may be required by the Commission. The
19    procurement plan shall identify the portfolio of
20    demand-response and power and energy products to be
21    procured. Cost-effective demand-response measures shall be
22    procured as set forth in item (iii) of subsection (b) of
23    this Section. Copies of the procurement plan shall be
24    posted and made publicly available on the Agency's and
25    Commission's websites, and copies shall also be provided
26    to each affected electric utility. An affected utility

 

 

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1    shall have 30 days following the date of posting to
2    provide comment to the Agency on the procurement plan.
3    Other interested entities also may comment on the
4    procurement plan. All comments submitted to the Agency
5    shall be specific, supported by data or other detailed
6    analyses, and, if objecting to all or a portion of the
7    procurement plan, accompanied by specific alternative
8    wording or proposals. All comments shall be posted on the
9    Agency's and Commission's websites. During this 30-day
10    comment period, the Agency shall hold at least one public
11    hearing within each utility's service area for the purpose
12    of receiving public comment on the procurement plan.
13    Within 14 days following the end of the 30-day review
14    period, the Agency shall revise the procurement plan as
15    necessary based on the comments received and file the
16    procurement plan with the Commission and post the
17    procurement plan on the websites.
18        (3) Within 5 days after the filing of the procurement
19    plan, any person objecting to the procurement plan shall
20    file an objection with the Commission. Within 10 days
21    after the filing, the Commission shall determine whether a
22    hearing is necessary. The Commission shall enter its order
23    confirming or modifying the procurement plan within 90
24    days after the filing of the procurement plan by the
25    Illinois Power Agency.
26        (4) The Commission shall approve the procurement plan,

 

 

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1    including expressly the forecast used in the procurement
2    plan, if the Commission determines that it will 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.
7    (e) The procurement process shall include each of the
8following components:
9        (1) Solicitation, pre-qualification, and registration
10    of bidders. The procurement administrator shall
11    disseminate information to potential bidders to promote a
12    procurement event, notify potential bidders that the
13    procurement administrator may enter into a post-bid price
14    negotiation with bidders that meet the applicable
15    benchmarks, provide supply requirements, and otherwise
16    explain the competitive procurement process. In addition
17    to such other publication as the procurement administrator
18    determines is appropriate, this information shall be
19    posted on the Illinois Power Agency's and the Commission's
20    websites. The procurement administrator shall also
21    administer the prequalification process, including
22    evaluation of credit worthiness, compliance with
23    procurement rules, and agreement to the standard form
24    contract developed pursuant to paragraph (2) of this
25    subsection (e). The procurement administrator shall then
26    identify and register bidders to participate in the

 

 

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1    procurement event.
2        (2) Standard contract forms and credit terms and
3    instruments. The procurement administrator, in
4    consultation with the utilities, the Commission, and other
5    interested parties and subject to Commission oversight,
6    shall develop and provide standard contract forms for the
7    supplier contracts that meet generally accepted industry
8    practices. Standard credit terms and instruments that meet
9    generally accepted industry practices shall be similarly
10    developed. The procurement administrator shall make
11    available to the Commission all written comments it
12    receives on the contract forms, credit terms, or
13    instruments. If the procurement administrator cannot reach
14    agreement with the applicable electric utility as to the
15    contract terms and conditions, the procurement
16    administrator must notify the Commission of any disputed
17    terms and the Commission shall resolve the dispute. The
18    terms of the contracts shall not be subject to negotiation
19    by winning bidders, and the bidders must agree to the
20    terms of the contract in advance so that winning bids are
21    selected solely on the basis of price.
22        (3) Establishment of a market-based price benchmark.
23    As part of the development of the procurement process, the
24    procurement administrator, in consultation with the
25    Commission staff, Agency staff, and the procurement
26    monitor, shall establish benchmarks for evaluating the

 

 

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1    final prices in the contracts for each of the products
2    that will be procured through the procurement process. The
3    benchmarks shall be based on price data for similar
4    products for the same delivery period and same delivery
5    hub, or other delivery hubs after adjusting for that
6    difference. The price benchmarks may also be adjusted to
7    take into account differences between the information
8    reflected in the underlying data sources and the specific
9    products and procurement process being used to procure
10    power for the Illinois utilities. The benchmarks shall be
11    confidential but shall be provided to, and will be subject
12    to Commission review and approval, prior to a procurement
13    event.
14        (4) Request for proposals competitive procurement
15    process. The procurement administrator shall design and
16    issue a request for proposals to supply electricity in
17    accordance with each utility's procurement plan, as
18    approved by the Commission. The request for proposals
19    shall set forth a procedure for sealed, binding commitment
20    bidding with pay-as-bid settlement, and provision for
21    selection of bids on the basis of price.
22        (5) A plan for implementing contingencies in the event
23    of supplier default or failure of the procurement process
24    to fully meet the expected load requirement due to
25    insufficient supplier participation, Commission rejection
26    of results, or any other cause.

 

 

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1            (i) Event of supplier default: In the event of
2        supplier default, the utility shall review the
3        contract of the defaulting supplier to determine if
4        the amount of supply is 200 megawatts or greater, and
5        if there are more than 60 days remaining of the
6        contract term. If both of these conditions are met,
7        and the default results in termination of the
8        contract, the utility shall immediately notify the
9        Illinois Power Agency that a request for proposals
10        must be issued to procure replacement power, and the
11        procurement administrator shall run an additional
12        procurement event. If the contracted supply of the
13        defaulting supplier is less than 200 megawatts or
14        there are less than 60 days remaining of the contract
15        term, the utility shall procure power and energy from
16        the applicable regional transmission organization
17        market, including ancillary services, capacity, and
18        day-ahead or real time energy, or both, for the
19        duration of the contract term to replace the
20        contracted supply; provided, however, that if a needed
21        product is not available through the regional
22        transmission organization market it shall be purchased
23        from the wholesale market.
24            (ii) Failure of the procurement process to fully
25        meet the expected load requirement: If the procurement
26        process fails to fully meet the expected load

 

 

10200SB1100sam001- 452 -LRB102 04924 SPS 24488 a

1        requirement due to insufficient supplier participation
2        or due to a Commission rejection of the procurement
3        results, the procurement administrator, the
4        procurement monitor, and the Commission staff shall
5        meet within 10 days to analyze potential causes of low
6        supplier interest or causes for the Commission
7        decision. If changes are identified that would likely
8        result in increased supplier participation, or that
9        would address concerns causing the Commission to
10        reject the results of the prior procurement event, the
11        procurement administrator may implement those changes
12        and rerun the request for proposals process according
13        to a schedule determined by those parties and
14        consistent with Section 1-75 of the Illinois Power
15        Agency Act and this subsection. In any event, a new
16        request for proposals process shall be implemented by
17        the procurement administrator within 90 days after the
18        determination that the procurement process has failed
19        to fully meet the expected load requirement.
20            (iii) In all cases where there is insufficient
21        supply provided under contracts awarded through the
22        procurement process to fully meet the electric
23        utility's load requirement, the utility shall meet the
24        load requirement by procuring power and energy from
25        the applicable regional transmission organization
26        market, including ancillary services, capacity, and

 

 

10200SB1100sam001- 453 -LRB102 04924 SPS 24488 a

1        day-ahead or real time energy, or both; provided,
2        however, that if a needed product is not available
3        through the regional transmission organization market
4        it shall be purchased from the wholesale market.
5        (6) The procurement process described in this
6    subsection is exempt from the requirements of the Illinois
7    Procurement Code, pursuant to Section 20-10 of that Code.
8    (f) Within 2 business days after opening the sealed bids,
9the procurement administrator shall submit a confidential
10report to the Commission. The report shall contain the results
11of the bidding for each of the products along with the
12procurement administrator's recommendation for the acceptance
13and rejection of bids based on the price benchmark criteria
14and other factors observed in the process. The procurement
15monitor also shall submit a confidential report to the
16Commission within 2 business days after opening the sealed
17bids. The report shall contain the procurement monitor's
18assessment of bidder behavior in the process as well as an
19assessment of the procurement administrator's compliance with
20the procurement process and rules. The Commission shall review
21the confidential reports submitted by the procurement
22administrator and procurement monitor, and shall accept or
23reject the recommendations of the procurement administrator
24within 2 business days after receipt of the reports.
25    (g) Within 3 business days after the Commission decision
26approving the results of a procurement event, the utility

 

 

10200SB1100sam001- 454 -LRB102 04924 SPS 24488 a

1shall enter into binding contractual arrangements with the
2winning suppliers using the standard form contracts; except
3that the utility shall not be required either directly or
4indirectly to execute the contracts if a tariff that is
5consistent with subsection (l) of this Section has not been
6approved and placed into effect for that utility.
7    (h) The names of the successful bidders and the load
8weighted average of the winning bid prices for each contract
9type and for each contract term shall be made available to the
10public at the time of Commission approval of a procurement
11event. The Commission, the procurement monitor, the
12procurement administrator, the Illinois Power Agency, and all
13participants in the procurement process shall maintain the
14confidentiality of all other supplier and bidding information
15in a manner consistent with all applicable laws, rules,
16regulations, and tariffs. Confidential information, including
17the confidential reports submitted by the procurement
18administrator and procurement monitor pursuant to subsection
19(f) of this Section, shall not be made publicly available and
20shall not be discoverable by any party in any proceeding,
21absent a compelling demonstration of need, nor shall those
22reports be admissible in any proceeding other than one for law
23enforcement purposes.
24    (i) Within 2 business days after a Commission decision
25approving the results of a procurement event or such other
26date as may be required by the Commission from time to time,

 

 

10200SB1100sam001- 455 -LRB102 04924 SPS 24488 a

1the utility shall file for informational purposes with the
2Commission its actual or estimated retail supply charges, as
3applicable, by customer supply group reflecting the costs
4associated with the procurement and computed in accordance
5with the tariffs filed pursuant to subsection (l) of this
6Section and approved by the Commission.
7    (j) Within 60 days following August 28, 2007 (the
8effective date of Public Act 95-481), each electric utility
9that on December 31, 2005 provided electric service to at
10least 100,000 customers in Illinois shall prepare and file
11with the Commission an initial procurement plan, which shall
12conform in all material respects to the requirements of the
13procurement plan set forth in subsection (b); provided,
14however, that the Illinois Power Agency Act shall not apply to
15the initial procurement plan prepared pursuant to this
16subsection. The initial procurement plan shall identify the
17portfolio of power and energy products to be procured and
18delivered for the period June 2008 through May 2009, and shall
19identify the proposed procurement administrator, who shall
20have the same experience and expertise as is required of a
21procurement administrator hired pursuant to Section 1-75 of
22the Illinois Power Agency Act. Copies of the procurement plan
23shall be posted and made publicly available on the
24Commission's website. The initial procurement plan may include
25contracts for renewable resources that extend beyond May 2009.
26        (i) Within 14 days following filing of the initial

 

 

10200SB1100sam001- 456 -LRB102 04924 SPS 24488 a

1    procurement plan, any person may file a detailed objection
2    with the Commission contesting the procurement plan
3    submitted by the electric utility. All objections to the
4    electric utility's plan shall be specific, supported by
5    data or other detailed analyses. The electric utility may
6    file a response to any objections to its procurement plan
7    within 7 days after the date objections are due to be
8    filed. Within 7 days after the date the utility's response
9    is due, the Commission shall determine whether a hearing
10    is necessary. If it determines that a hearing is
11    necessary, it shall require the hearing to be completed
12    and issue an order on the procurement plan within 60 days
13    after the filing of the procurement plan by the electric
14    utility.
15        (ii) The order shall approve or modify the procurement
16    plan, approve an independent procurement administrator,
17    and approve or modify the electric utility's tariffs that
18    are proposed with the initial procurement plan. The
19    Commission shall approve the procurement plan if the
20    Commission determines that it will ensure adequate,
21    reliable, affordable, efficient, and environmentally
22    sustainable electric service at the lowest total cost over
23    time, taking into account any benefits of price stability.
24    (k) (Blank).
25    (k-5) (Blank).
26    (l) An electric utility shall recover its costs incurred

 

 

10200SB1100sam001- 457 -LRB102 04924 SPS 24488 a

1under this Section, including, but not limited to, the costs
2of procuring power and energy demand-response resources under
3this Section. The utility shall file with the initial
4procurement plan its proposed tariffs through which its costs
5of procuring power that are incurred pursuant to a
6Commission-approved procurement plan and those other costs
7identified in this subsection (l), will be recovered. The
8tariffs shall include a formula rate or charge designed to
9pass through both the costs incurred by the utility in
10procuring a supply of electric power and energy for the
11applicable customer classes with no mark-up or return on the
12price paid by the utility for that supply, plus any just and
13reasonable costs that the utility incurs in arranging and
14providing for the supply of electric power and energy. The
15formula rate or charge shall also contain provisions that
16ensure that its application does not result in over or under
17recovery due to changes in customer usage and demand patterns,
18and that provide for the correction, on at least an annual
19basis, of any accounting errors that may occur. A utility
20shall recover through the tariff all reasonable costs incurred
21to implement or comply with any procurement plan that is
22developed and put into effect pursuant to Section 1-75 of the
23Illinois Power Agency Act and this Section, including any fees
24assessed by the Illinois Power Agency, costs associated with
25load balancing, and contingency plan costs. The electric
26utility shall also recover its full costs of procuring

 

 

10200SB1100sam001- 458 -LRB102 04924 SPS 24488 a

1electric supply for which it contracted before the effective
2date of this Section in conjunction with the provision of full
3requirements service under fixed-price bundled service tariffs
4subsequent to December 31, 2006. All such costs shall be
5deemed to have been prudently incurred. The pass-through
6tariffs that are filed and approved pursuant to this Section
7shall not be subject to review under, or in any way limited by,
8Section 16-111(i) of this Act. All of the costs incurred by the
9electric utility associated with the purchase of zero emission
10credits in accordance with subsection (d-5) of Section 1-75 of
11the Illinois Power Agency Act and, beginning June 1, 2017, all
12of the costs incurred by the electric utility associated with
13the purchase of renewable energy resources in accordance with
14Sections 1-56 and 1-75 of the Illinois Power Agency Act, shall
15be recovered through the electric utility's tariffed charges
16applicable to all of its retail customers, as specified in
17subsection (k) of Section 16-108 of this Act, and shall not be
18recovered through the electric utility's tariffed charges for
19electric power and energy supply to its eligible retail
20customers.
21    (m) The Commission has the authority to adopt rules to
22carry out the provisions of this Section. For the public
23interest, safety, and welfare, the Commission also has
24authority to adopt rules to carry out the provisions of this
25Section on an emergency basis immediately following August 28,
262007 (the effective date of Public Act 95-481).

 

 

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1    (n) Notwithstanding any other provision of this Act, any
2affiliated electric utilities that submit a single procurement
3plan covering their combined needs may procure for those
4combined needs in conjunction with that plan, and may enter
5jointly into power supply contracts, purchases, and other
6procurement arrangements, and allocate capacity and energy and
7cost responsibility therefor among themselves in proportion to
8their requirements.
9    (o) On or before June 1 of each year, the Commission shall
10hold an informal hearing for the purpose of receiving comments
11on the prior year's procurement process and any
12recommendations for change.
13    (p) An electric utility subject to this Section may
14propose to invest, lease, own, or operate an electric
15generation facility as part of its procurement plan, provided
16the utility demonstrates that such facility is the least-cost
17option to provide electric service to those retail customers
18included in the plan's electric supply service requirements.
19If the facility is shown to be the least-cost option and is
20included in a procurement plan prepared in accordance with
21Section 1-75 of the Illinois Power Agency Act and this
22Section, then the electric utility shall make a filing
23pursuant to Section 8-406 of this Act, and may request of the
24Commission any statutory relief required thereunder. If the
25Commission grants all of the necessary approvals for the
26proposed facility, such supply shall thereafter be considered

 

 

10200SB1100sam001- 460 -LRB102 04924 SPS 24488 a

1as a preexisting pre-existing contract under subsection (b) of
2this Section. The Commission shall in any order approving a
3proposal under this subsection specify how the utility will
4recover the prudently incurred costs of investing in, leasing,
5owning, or operating such generation facility through just and
6reasonable rates charged to those retail customers included in
7the plan's electric supply service requirements. Cost recovery
8for facilities included in the utility's procurement plan
9pursuant to this subsection shall not be subject to review
10under or in any way limited by the provisions of Section
1116-111(i) of this Act. Nothing in this Section is intended to
12prohibit a utility from filing for a fuel adjustment clause as
13is otherwise permitted under Section 9-220 of this Act.
14    (q) If the Illinois Power Agency filed with the
15Commission, under Section 16-111.5 of this Act, its proposed
16procurement plan for the period commencing June 1, 2017, and
17the Commission has not yet entered its final order approving
18the plan on or before the effective date of this amendatory Act
19of the 99th General Assembly, then the Illinois Power Agency
20shall file a notice of withdrawal with the Commission, after
21the effective date of this amendatory Act of the 99th General
22Assembly, to withdraw the proposed procurement of renewable
23energy resources to be approved under the plan, other than the
24procurement of renewable energy credits from distributed
25renewable energy generation devices using funds previously
26collected from electric utilities' retail customers that take

 

 

10200SB1100sam001- 461 -LRB102 04924 SPS 24488 a

1service pursuant to electric utilities' hourly pricing tariff
2or tariffs and, for an electric utility that serves less than
3100,000 retail customers in the State, other than the
4procurement of renewable energy credits from distributed
5renewable energy generation devices. Upon receipt of the
6notice, the Commission shall enter an order that approves the
7withdrawal of the proposed procurement of renewable energy
8resources from the plan. The initially proposed procurement of
9renewable energy resources shall not be approved or be the
10subject of any further hearing, investigation, proceeding, or
11order of any kind.
12    This amendatory Act of the 99th General Assembly preempts
13and supersedes any order entered by the Commission that
14approved the Illinois Power Agency's procurement plan for the
15period commencing June 1, 2017, to the extent it is
16inconsistent with the provisions of this amendatory Act of the
1799th General Assembly. To the extent any previously entered
18order approved the procurement of renewable energy resources,
19the portion of that order approving the procurement shall be
20void, other than the procurement of renewable energy credits
21from distributed renewable energy generation devices using
22funds previously collected from electric utilities' retail
23customers that take service under electric utilities' hourly
24pricing tariff or tariffs and, for an electric utility that
25serves less than 100,000 retail customers in the State, other
26than the procurement of renewable energy credits for

 

 

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1distributed renewable energy generation devices.
2(Source: P.A. 99-906, eff. 6-1-17.)
 
3    (220 ILCS 5/16-122)
4    Sec. 16-122. Customer information.
5    (a) Upon the request of a retail customer, or a person who
6presents verifiable authorization and is acting as the
7customer's agent, and payment of a reasonable fee, electric
8utilities shall provide to the customer or its authorized
9agent the customer's billing and usage data.
10    Within one year after the effective date of this
11amendatory Act of the 102nd General Assembly, each electric
12utility with over 500,000 retail customers in this State shall
13submit to the Commission the utility's plan to offer to retail
14customers, on a pilot basis, a selection of programs intended
15to securely provide to customers or customers' authorized
16energy management partners such customers' energy usage
17information on a near real time basis to enable such customers
18to more easily and effectively manage their energy
19consumption, including, but not limited to, the purposes of
20assisting such customers to lower their energy usage and
21reduce the carbon emissions associated with their energy
22usage. The utility's pilot design shall include, but not be
23limited to, reasonable efforts to encourage participation by
24retail customers that are public schools, especially public
25schools located within environmental justice communities or

 

 

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1within Organizational Units that fall within Tier 1 or Tier 2.
2For purposes of this Section, "public schools" shall have the
3meaning set forth in Section 1-3 of the School Code,
4"Organizational Unit", "Tier 1", and "Tier 2" shall have the
5meanings set forth in Section 18-8.15 of the School Code and
6"environmental justice community" shall have the meaning set
7forth in Section 1-56 of the Illinois Power Agency's Act.
8Within 210 days after the utility files its pilot program plan
9under this subsection (a), the Commission shall review and,
10after notice and hearing, enter an order approving the plan if
11it finds that the plan conforms to the requirements of this
12Section or, if the Commission finds that the plan does not
13conform to the requirements of this Section, the Commission
14must enter an order describing in detail the reasons for not
15approving the plan. The utility must resubmit its pilot
16program plan to address the Commission's concerns, and the
17Commission shall expeditiously review and by order approve the
18revised plan if it finds that the plan conforms to the
19requirements of this Section, provided that such order shall
20be entered no later than 120 days after the utility resubmits
21its plan.
22    The approved pilot program plan shall provide for the
23duration of the pilot program and a deadline for the utility to
24file a report on the results of the pilot with the Commission.
25The utility, contemporaneously with the filing of the report,
26shall file a proposed implementation plan for programs that

 

 

10200SB1100sam001- 464 -LRB102 04924 SPS 24488 a

1were found to be secure, cost-effective, and of interest to
2customers. Within 210 days after the utility files its
3implementation program plan under this subsection (a), the
4Commission shall review and, after notice and hearing, enter
5an order approving the plan if it finds that the plan conforms
6to the requirements of this Section or, if the Commission
7finds that the plan does not conform to the requirements of
8this Section, the Commission must enter an order describing in
9detail the reasons for not approving the plan. The utility may
10resubmit its implementation plan to address the Commission's
11concerns, and the Commission shall expeditiously review and by
12order approve the revised plan if it finds that the plan
13conforms to the requirements of this Section, provided that
14such order shall be entered no later than 120 days after the
15utility resubmits its plan.
16    In addition, within 2 years after the effective date of
17this amendatory Act of the 102nd General Assembly, each
18electric utility with over 500,000 retail customers in this
19State shall offer on its website a functionality that allows
20customers to access and use their billing and usage
21information to directly evaluate different bill impacts that
22would result from the application of that information to such
23other rates for which the customer is eligible.
24    (b) Upon request from any alternative retail electric
25supplier and payment of a reasonable fee, an electric utility
26serving retail customers in its service area shall make

 

 

10200SB1100sam001- 465 -LRB102 04924 SPS 24488 a

1available generic information concerning the usage, load shape
2curve or other general characteristics of customers by rate
3classification. Provided however, no customer-specific
4customer specific billing, usage or load shape data shall be
5provided under this subsection unless authorization to provide
6such information is provided by the customer pursuant to
7subsection (a) of this Section.
8    (c) Upon request from a unit of local government and
9payment of a reasonable fee, an electric utility shall make
10available information concerning the usage, load shape curves,
11and other characteristics of customers by customer
12classification and location within the boundaries of the unit
13of local government, however, no customer-specific customer
14specific billing, usage, or load shape data shall be provided
15under this subsection unless authorization to provide that
16information is provided by the customer.
17    (d) All such customer information shall be made available
18in a timely fashion in an electronic format, if available.
19(Source: P.A. 92-585, eff. 6-26-02.)
 
20    (220 ILCS 5/16-123)
21    Sec. 16-123. Establishment of customer information centers
22for electric utilities and alternative retail electric
23suppliers.
24    (a) All electric utilities and alternative retail electric
25suppliers shall be required to maintain a customer call center

 

 

10200SB1100sam001- 466 -LRB102 04924 SPS 24488 a

1where customers can reach a representative and receive current
2information. Customers shall periodically be notified on how
3to reach the call center. The Commission shall have the
4authority to establish reporting requirements for such
5centers.
6    Within 180 days after the effective date of this
7amendatory Act of the 102nd General Assembly, the Illinois
8Commerce Commission shall initiate a rulemaking to establish
9rules under which each electric utility serving over 500,000
10retail customers in this State shall prepare and submit
11periodic confidential report to the Illinois Commerce
12Commission and the Attorney General that compiles data
13regarding instances in which the utility's customers or other
14members of the public have complained to the utility about
15conduct of alternative retail electric suppliers as defined by
16Section 16-102 of this Act and agents, brokers, and
17consultants engaged in the procurement or sale of retail
18electricity supply for third parties as defined by subsection
19(b) of Section 16-115. Such confidential reports shall
20include, but not be limited to, information reflecting the
21number of complaints; the alternative retail electric
22supplier, agents, brokers, or consultants involved; and the
23general nature of the conduct. The electric utility, in
24collecting and compiling the applicable data and in preparing
25and submitting the confidential reports, shall not be deemed
26in any way to have stated, warranted, verified, or attested to

 

 

10200SB1100sam001- 467 -LRB102 04924 SPS 24488 a

1the accuracy of the information provided by customers that is
2reflected in the reports.
3    (a-5) Within 90 days after the effective date of this
4amendatory Act of the 102nd General Assembly, electric
5utilities serving over 500,000 retail customers in this State
6shall commence a collaborative process with community-based
7organizations to design and implement a consumer protection
8program that offers education to customers on identifying and
9protecting themselves against consumer fraud and scams.
10    (b) Notwithstanding anything to the contrary, an electric
11utility may:
12        (1) disclose the current utility electric supply price
13    to a retail customer who takes electric power and energy
14    supply service from an alternative retail electric
15    supplier;
16        (2) disclose the supply price the customer is paying
17    as reflected on the customer's bill, if known;
18        (3) furnish to a retail customer a list of frequently
19    asked questions to be used by the retail customer in
20    evaluating electric power and energy supply rate offers by
21    alternative retail electric suppliers; this list may
22    include, but is not limited to, the following:
23            (A) length of the contract;
24            (B) the price per kilowatt hour, and whether the
25        contract price is fixed or variable, and if variable,
26        the circumstances under which the price may change;

 

 

10200SB1100sam001- 468 -LRB102 04924 SPS 24488 a

1            (C) whether penalties or early termination fees
2        apply if the customer terminates the contract before
3        the expiration of its term; and
4            (D) whether the customer may be subject to any
5        other adjustments, penalties, surcharges, or costs
6        beyond the electric power and energy supply rate; and
7        (4) provide to a retail customer education information
8    published by the Office of Retail Market Development and
9    the Office of the Attorney General regarding the selection
10    and evaluation of electric power and energy supply rate
11    offers by alternative retail electric suppliers.
12(Source: P.A. 101-590, eff. 1-1-20.)
 
13    (220 ILCS 5/16-140 new)
14    Sec. 16-140. Combustion Engine New Sale Transition Task
15Force. Within 180 days after the effective date of this
16amendatory Act of the 102nd General Assembly, the Combustion
17Engine New Sale Transition Task Force shall be established,
18which shall consist of 11 total members, with each member
19possessing either technical or business expertise related to
20transportation electrification, carbon reduction, societal
21impacts of carbon emissions or technology transition. Of the
2211 members, 5 shall be appointed by the Governor, one shall be
23appointed by the Speaker of the House of Representatives, one
24shall be appointed by the Minority Leader of the House of
25Representatives, one shall be appointed by the President of

 

 

10200SB1100sam001- 469 -LRB102 04924 SPS 24488 a

1the Senate, one shall be appointed by the Minority Leader of
2the Senate, one shall be appointed by the Director of the
3Illinois Environmental Protection Agency, and one shall be
4appointed by the Director of the Department of Transportation.
5Of the Governor's 5 appointments, at least one must represent
6an auto manufacturer or auto manufacturing industry
7organization, at least one must represent a national labor
8organization, at least one must be a health care professional;
9and at least one must represent a group that represents
10low-income families and individuals.
11    The Governor shall designate one of the members of the
12Committee to serve as chairman, and that person shall serve as
13the chairman at the pleasure of the Governor. The members
14shall not be compensated for serving on the Task Force. The
15Task Force shall have the following duties:
16        (1) Investigate whether the State should prohibit the
17    sale of all or certain categories of new combustion engine
18    vehicles by a date or dates certain and, if so, whether a
19    phased approach or different methodology should be used.
20        (2) File a report with the Governor and the General
21    Assembly that sets forth the Task Force's findings
22    regarding the matters investigated pursuant to paragraph
23    (1).
 
24    Section 90-35. The Energy Assistance Act is amended by
25changing Sections 6, 13, and 18 and by adding Section 20 as

 

 

10200SB1100sam001- 470 -LRB102 04924 SPS 24488 a

1follows:
 
2    (305 ILCS 20/6)  (from Ch. 111 2/3, par. 1406)
3    Sec. 6. Eligibility, Conditions of Participation, and
4Energy Assistance.
5    (a) Any person who is a resident of the State of Illinois
6and whose household income is not greater than an amount
7determined annually by the Department, in consultation with
8the Policy Advisory Council, may apply for assistance pursuant
9to this Act in accordance with regulations promulgated by the
10Department. In setting the annual eligibility level, the
11Department shall consider the amount of available funding and
12may not set a limit higher than 150% of the federal nonfarm
13poverty level as established by the federal Office of
14Management and Budget or 60% of the State median income for the
15current fiscal year as established by the U.S. Department of
16Health and Human Services; except that for the period from the
17effective date of this amendatory Act of the 101st General
18Assembly through June 30, 2021, the Department may establish
19limits not higher than 200% of that poverty level. The
20Department, in consultation with the Policy Advisory Council,
21may adjust the percentage of poverty level annually in
22accordance with federal guidelines and based on funding
23availability.
24    (b) Applicants who qualify for assistance pursuant to
25subsection (a) of this Section shall, subject to appropriation

 

 

10200SB1100sam001- 471 -LRB102 04924 SPS 24488 a

1from the General Assembly and subject to availability of funds
2to the Department, receive energy assistance as provided by
3this Act. The Department, upon receipt of monies authorized
4pursuant to this Act for energy assistance, shall commit funds
5for each qualified applicant in an amount determined by the
6Department. In determining the amounts of assistance to be
7provided to or on behalf of a qualified applicant, the
8Department shall ensure that the highest amounts of assistance
9go to households with the greatest energy costs in relation to
10household income. The Department shall include factors such as
11energy costs, household size, household income, and region of
12the State when determining individual household benefits. In
13setting assistance levels, the Department shall attempt to
14provide assistance to approximately the same number of
15households who participated in the 1991 Residential Energy
16Assistance Partnership Program. Such assistance levels shall
17be adjusted annually on the basis of funding availability and
18energy costs. In promulgating rules for the administration of
19this Section the Department shall assure that a minimum of 1/3
20of funds available for benefits to eligible households with
21the lowest incomes and that elderly households, households
22with children under the age of 6 years old, and households with
23persons with disabilities are offered a priority application
24period.
25    (c) If the applicant is not a customer of record of an
26energy provider for energy services or an applicant for such

 

 

10200SB1100sam001- 472 -LRB102 04924 SPS 24488 a

1service, such applicant shall receive a direct energy
2assistance payment in an amount established by the Department
3for all such applicants under this Act; provided, however,
4that such an applicant must have rental expenses for housing
5greater than 30% of household income.
6    (c-1) This subsection shall apply only in cases where: (1)
7the applicant is not a customer of record of an energy provider
8because energy services are provided by the owner of the unit
9as a portion of the rent; (2) the applicant resides in housing
10subsidized or developed with funds provided under the Rental
11Housing Support Program Act or under a similar locally funded
12rent subsidy program, or is the voucher holder who resides in a
13rental unit within the State of Illinois and whose monthly
14rent is subsidized by the tenant-based Housing Choice Voucher
15Program under Section 8 of the U.S. Housing Act of 1937; and
16(3) the rental expenses for housing are no more than 30% of
17household income. In such cases, the household may apply for
18an energy assistance payment under this Act and the owner of
19the housing unit shall cooperate with the applicant by
20providing documentation of the energy costs for that unit. Any
21compensation paid to the energy provider who supplied energy
22services to the household shall be paid on behalf of the owner
23of the housing unit providing energy services to the
24household. The Department shall report annually to the General
25Assembly on the number of households receiving energy
26assistance under this subsection and the cost of such

 

 

10200SB1100sam001- 473 -LRB102 04924 SPS 24488 a

1assistance. The provisions of this subsection (c-1), other
2than this sentence, are inoperative after August 31, 2012.
3    (d) If the applicant is a customer of an energy provider,
4such applicant shall receive energy assistance in an amount
5established by the Department for all such applicants under
6this Act, such amount to be paid by the Department to the
7energy provider supplying winter energy service to such
8applicant. Such applicant shall:
9        (i) make all reasonable efforts to apply to any other
10    appropriate source of public energy assistance; and
11        (ii) sign a waiver permitting the Department to
12    receive income information from any public or private
13    agency providing income or energy assistance and from any
14    employer, whether public or private.
15    (e) Any qualified applicant pursuant to this Section may
16receive or have paid on such applicant's behalf an emergency
17assistance payment to enable such applicant to obtain access
18to winter energy services. Any such payments shall be made in
19accordance with regulations of the Department.
20    (f) The Department may, if sufficient funds are available,
21provide additional benefits to certain qualified applicants:
22        (i) for the reduction of past due amounts owed to
23    energy providers; and
24        (ii) to assist the household in responding to
25    excessively high summer temperatures or energy costs.
26    Households containing elderly members, children, a person

 

 

10200SB1100sam001- 474 -LRB102 04924 SPS 24488 a

1    with a disability, or a person with a medical need for
2    conditioned air shall receive priority for receipt of such
3    benefits.
4(Source: P.A. 101-636, eff. 6-10-20.)
 
5    (305 ILCS 20/13)
6    (Section scheduled to be repealed on January 1, 2025)
7    Sec. 13. Supplemental Low-Income Energy Assistance Fund.
8    (a) The Supplemental Low-Income Energy Assistance Fund is
9hereby created as a special fund in the State treasury.
10Notwithstanding anything to the contrary, the Supplemental
11Low-Income Energy Assistance Fund is not subject to sweeps,
12administrative charge-backs, or any other fiscal or budgetary
13maneuver that would in any way transfer any amounts from the
14Supplemental Low-Income Energy Assistance Fund into any other
15fund of the State Treasury. The Supplemental Low-Income Energy
16Assistance Fund is authorized to receive moneys from voluntary
17donations from individuals, foundations, corporations, and
18other sources, moneys received pursuant to Section 17, and, by
19statutory deposit, the moneys collected pursuant to this
20Section. The Fund is also authorized to receive voluntary
21donations from individuals, foundations, corporations, and
22other sources. Subject to appropriation, the Department shall
23use moneys from the Supplemental Low-Income Energy Assistance
24Fund for payments to electric or gas public utilities,
25municipal electric or gas utilities, and electric cooperatives

 

 

10200SB1100sam001- 475 -LRB102 04924 SPS 24488 a

1on behalf of their customers who are participants in the
2program authorized by Sections 4 and 18 of this Act, for the
3provision of weatherization services and for administration of
4the Supplemental Low-Income Energy Assistance Fund. The yearly
5expenditures for weatherization may not exceed 10% of the
6amount collected during the year pursuant to this Section,
7except when unspent funds from the Supplemental Low-Income
8Energy Assistance Fund are reallocated from a previous year;
9any unspent balance of the 10% weatherization allowance may be
10used for weatherization expenses in the year they are
11reallocated. The yearly administrative expenses of the
12Supplemental Low-Income Energy Assistance Fund may not exceed
1312.5% 10% of the amount collected during that year pursuant to
14this Section, except when unspent funds from the Supplemental
15Low-Income Energy Assistance Fund are reallocated from a
16previous year; any unspent balance of the 12.5% 10%
17administrative allowance may be utilized for administrative
18expenses in the year they are reallocated. Moneys deposited
19into the Supplemental Low-Income Energy Assistance Fund, other
20than those deposited pursuant to subsection (g) of this
21Section, are not subject to the percentage limitations
22applicable to yearly weatherization and administrative
23expenses set forth in this subsection (a).
24    (b) Notwithstanding the provisions of Section 16-111 of
25the Public Utilities Act but subject to subsection (k) of this
26Section, each public utility, electric cooperative, as defined

 

 

10200SB1100sam001- 476 -LRB102 04924 SPS 24488 a

1in Section 3.4 of the Electric Supplier Act, and municipal
2utility, as referenced in Section 3-105 of the Public
3Utilities Act, that is engaged in the delivery of electricity
4or the distribution of natural gas within the State of
5Illinois shall, effective January 1, 1998, assess each of its
6customer accounts a monthly Energy Assistance Charge for the
7Supplemental Low-Income Energy Assistance Fund. The delivering
8public utility, municipal electric or gas utility, or electric
9or gas cooperative for a self-assessing purchaser remains
10subject to the collection of the fee imposed by this Section.
11The monthly charge shall be as follows:
12        (1) $0.48 per month on each account for residential
13    electric service;
14        (2) $0.48 per month on each account for residential
15    gas service;
16        (3) $4.80 per month on each account for
17    non-residential electric service which had less than 10
18    megawatts of peak demand during the previous calendar
19    year;
20        (4) $4.80 per month on each account for
21    non-residential gas service which had distributed to it
22    less than 4,000,000 therms of gas during the previous
23    calendar year;
24        (5) $360 per month on each account for non-residential
25    electric service which had 10 megawatts or greater of peak
26    demand during the previous calendar year; and

 

 

10200SB1100sam001- 477 -LRB102 04924 SPS 24488 a

1        (6) $360 per month on each account for non-residential
2    gas service which had 4,000,000 or more therms of gas
3    distributed to it during the previous calendar year.
4    The incremental change to such charges imposed by this
5amendatory Act of the 96th General Assembly shall not (i) be
6used for any purpose other than to directly assist customers
7and (ii) be applicable to utilities serving less than 100,000
8customers in Illinois on January 1, 2009.
9    In addition, electric and gas utilities have committed,
10and shall contribute, a one-time payment of $22 million to the
11Fund, within 10 days after the effective date of the tariffs
12established pursuant to Sections 16-111.8 and 19-145 of the
13Public Utilities Act to be used for the Department's cost of
14implementing the programs described in Section 18 of this
15amendatory Act of the 96th General Assembly, the Arrearage
16Reduction Program described in Section 18, and the programs
17described in Section 8-105 of the Public Utilities Act. If a
18utility elects not to file a rider within 90 days after the
19effective date of this amendatory Act of the 96th General
20Assembly, then the contribution from such utility shall be
21made no later than February 1, 2010.
22    (c) For purposes of this Section:
23        (1) "residential electric service" means electric
24    utility service for household purposes delivered to a
25    dwelling of 2 or fewer units which is billed under a
26    residential rate, or electric utility service for

 

 

10200SB1100sam001- 478 -LRB102 04924 SPS 24488 a

1    household purposes delivered to a dwelling unit or units
2    which is billed under a residential rate and is registered
3    by a separate meter for each dwelling unit;
4        (2) "residential gas service" means gas utility
5    service for household purposes distributed to a dwelling
6    of 2 or fewer units which is billed under a residential
7    rate, or gas utility service for household purposes
8    distributed to a dwelling unit or units which is billed
9    under a residential rate and is registered by a separate
10    meter for each dwelling unit;
11        (3) "non-residential electric service" means electric
12    utility service which is not residential electric service;
13    and
14        (4) "non-residential gas service" means gas utility
15    service which is not residential gas service.
16    (d) Within 30 days after the effective date of this
17amendatory Act of the 96th General Assembly, each public
18utility engaged in the delivery of electricity or the
19distribution of natural gas shall file with the Illinois
20Commerce Commission tariffs incorporating the Energy
21Assistance Charge in other charges stated in such tariffs,
22which shall become effective no later than the beginning of
23the first billing cycle following such filing.
24    (e) The Energy Assistance Charge assessed by electric and
25gas public utilities shall be considered a charge for public
26utility service.

 

 

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1    (f) By the 20th day of the month following the month in
2which the charges imposed by the Section were collected, each
3public utility, municipal utility, and electric cooperative
4shall remit to the Department of Revenue all moneys received
5as payment of the Energy Assistance Charge on a return
6prescribed and furnished by the Department of Revenue showing
7such information as the Department of Revenue may reasonably
8require; provided, however, that a utility offering an
9Arrearage Reduction Program or Supplemental Arrearage
10Reduction Program pursuant to Section 18 of this Act shall be
11entitled to net those amounts necessary to fund and recover
12the costs of such Programs as authorized by that Section that
13is no more than the incremental change in such Energy
14Assistance Charge authorized by Public Act 96-33. If a
15customer makes a partial payment, a public utility, municipal
16utility, or electric cooperative may elect either: (i) to
17apply such partial payments first to amounts owed to the
18utility or cooperative for its services and then to payment
19for the Energy Assistance Charge or (ii) to apply such partial
20payments on a pro rata pro-rata basis between amounts owed to
21the utility or cooperative for its services and to payment for
22the Energy Assistance Charge.
23    If any payment provided for in this Section exceeds the
24distributor's liabilities under this Act, as shown on an
25original return, the Department may authorize the distributor
26to credit such excess payment against liability subsequently

 

 

10200SB1100sam001- 480 -LRB102 04924 SPS 24488 a

1to be remitted to the Department under this Act, in accordance
2with reasonable rules adopted by the Department. If the
3Department subsequently determines that all or any part of the
4credit taken was not actually due to the distributor, the
5distributor's discount shall be reduced by an amount equal to
6the difference between the discount as applied to the credit
7taken and that actually due, and that distributor shall be
8liable for penalties and interest on such difference.
9    (g) The Department of Revenue shall deposit into the
10Supplemental Low-Income Energy Assistance Fund all moneys
11remitted to it in accordance with subsection (f) of this
12Section; provided, however, that the amounts remitted by each
13utility shall be used to provide assistance to that utility's
14customers. The utilities shall coordinate with the Department
15to establish an equitable and practical methodology for
16implementing this subsection (g) beginning with the 2010
17program year.
18    (h) On or before December 31, 2002, the Department shall
19prepare a report for the General Assembly on the expenditure
20of funds appropriated from the Low-Income Energy Assistance
21Block Grant Fund for the program authorized under Section 4 of
22this Act.
23    (i) The Department of Revenue may establish such rules as
24it deems necessary to implement this Section.
25    (j) The Department of Commerce and Economic Opportunity
26may establish such rules as it deems necessary to implement

 

 

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1this Section.
2    (k) The charges imposed by this Section shall only apply
3to customers of municipal electric or gas utilities and
4electric or gas cooperatives if the municipal electric or gas
5utility or electric or gas cooperative makes an affirmative
6decision to impose the charge. If a municipal electric or gas
7utility or an electric cooperative makes an affirmative
8decision to impose the charge provided by this Section, the
9municipal electric or gas utility or electric cooperative
10shall inform the Department of Revenue in writing of such
11decision when it begins to impose the charge. If a municipal
12electric or gas utility or electric or gas cooperative does
13not assess this charge, the Department may not use funds from
14the Supplemental Low-Income Energy Assistance Fund to provide
15benefits to its customers under the program authorized by
16Section 4 of this Act.
17    In its use of federal funds under this Act, the Department
18may not cause a disproportionate share of those federal funds
19to benefit customers of systems which do not assess the charge
20provided by this Section.
21    This Section is repealed on January 1, 2025 unless renewed
22by action of the General Assembly.
23(Source: P.A. 99-457, eff. 1-1-16; 99-906, eff. 6-1-17;
2499-933, eff. 1-27-17; 100-863, eff. 8-14-18; 100-1171, eff.
251-4-19.)
 

 

 

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1    (305 ILCS 20/18)
2    Sec. 18. Financial assistance; payment plans.
3    (a) The Percentage of Income Payment Plan (PIPP or PIP
4Plan) is hereby created as a mandatory bill payment assistance
5program for low-income residential customers of utilities
6serving more than 100,000 retail customers as of January 1,
72009. The PIP Plan will:
8        (1) bring participants' gas and electric bills into
9    the range of affordability;
10        (2) provide incentives for participants to make timely
11    payments;
12        (3) encourage participants to reduce usage and
13    participate in conservation and energy efficiency measures
14    that reduce the customer's bill and payment requirements;
15    and
16        (4) identify participants whose homes are most in need
17    of weatherization; and .
18        (5) endeavor to maximize participation and spend at
19    least 80% of the funding available for the year.
20    (b) For purposes of this Section:
21        (1) "LIHEAP" means the energy assistance program
22    established under the Illinois Energy Assistance Act and
23    the Low-Income Home Energy Assistance Act of 1981.
24        (2) "Plan participant" is an eligible participant who
25    is also eligible for the PIPP and who will receive either a
26    percentage of income payment credit under the PIPP

 

 

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1    criteria set forth in this Act or a benefit pursuant to
2    Section 4 of this Act. Plan participants are a subset of
3    eligible participants.
4        (3) "Pre-program arrears" means the amount a plan
5    participant owes for gas or electric service at the time
6    the participant is determined to be eligible for the PIPP
7    or the program set forth in Section 4 of this Act.
8        (4) "Eligible participant" means any person who has
9    applied for, been accepted and is receiving residential
10    service from a gas or electric utility and who is also
11    eligible for LIHEAP or otherwise satisfies the eligibility
12    criteria set forth in paragraph (1) of subsection (c) of
13    this Section.
14        
15    (c) The PIP Plan shall be administered as follows:
16        (1) The Department shall coordinate with Local
17    Administrative Agencies (LAAs), to determine eligibility
18    for the Illinois Low Income Home Energy Assistance Program
19    (LIHEAP) pursuant to the Energy Assistance Act, provided
20    that eligible income shall be no more than 150% of the
21    poverty level or 60% of the State median income, except
22    that for the period from the effective date of this
23    amendatory Act of the 101st General Assembly through June
24    30, 2021, eligible income shall be no more than 200% of the
25    poverty level. Applicants will be screened to determine
26    whether the applicant's projected payments for electric

 

 

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1    service or natural gas service over a 12-month period
2    exceed the criteria established in this Section. The
3    Department, in consultation with the Policy Advisory
4    Council, may adjust the percentage of poverty level
5    annually to determine income eligibility. Adjustments
6    authorized by this provision may not exclude To maintain
7    the financial integrity of the program, the Department may
8    limit eligibility to households with income below 125% of
9    the poverty level. Nothing in this Section is intended to
10    limit the ability of utilities to assist in the referral,
11    identification, or screening of applicants.
12        (2) The Department shall establish the percentage of
13    income formula to determine the amount of a monthly
14    credit, not to exceed $150 per month per household, not to
15    exceed $1,800 annually; however, for the period from the
16    effective date of this amendatory Act of the 101st General
17    Assembly through June 30, 2021, the monthly credit for
18    participants with eligible income over 100% of the poverty
19    level may be as much as $200 per month per household, not
20    to exceed $2,400 annually, and, the monthly credit for
21    participants with eligible income 100% or less of the
22    poverty level may be as much as $250 per month per
23    household, not to exceed $3,000 annually. Credits will be
24    applied to PIP Plan participants' utility bills based on
25    the portion of the bill that is the responsibility of the
26    participant provided that the percentage shall be no more

 

 

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1    than a total of 6% of the relevant income for gas and
2    electric utility bills combined, but in any event no less
3    than $10 per month, unless the household does not pay
4    directly for heat, in which case its payment shall be 2.4%
5    of income but in any event no less than $5 per month. The
6    Department may establish a minimum credit amount based on
7    the cost of administering the program and may deny credits
8    to otherwise eligible participants if the cost of
9    administering the credit exceeds the actual amount of any
10    monthly credit to a participant. If the participant takes
11    both gas and electric service, 66.67% of the credit shall
12    be allocated to the entity that provides the participant's
13    primary energy supply for heating. Each participant shall
14    enter into a levelized payment plan for, as applicable,
15    gas and electric service and such plans shall be
16    implemented by the utility so that a participant's usage
17    and required payments are reviewed and adjusted regularly,
18    but no more frequently than quarterly. Nothing in this
19    Section is intended to prohibit a customer, who is
20    otherwise eligible for LIHEAP, from participating in the
21    program described in Section 4 of this Act. Eligible
22    participants who receive such a benefit shall be
23    considered plan participants and shall be eligible to
24    participate in the Arrearage Reduction Program described
25    in item (5) of this subsection (c).
26        (3) The Department shall remit, through the LAAs, to

 

 

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1    the utility or participating alternative supplier that
2    portion of the plan participant's bill that is not the
3    responsibility of the participant. In the event that the
4    Department fails to timely remit payment to the utility,
5    the utility shall be entitled to recover all costs related
6    to such nonpayment through the automatic adjustment clause
7    tariffs established pursuant to Section 16-111.8 and
8    Section 19-145 of the Public Utilities Act. For purposes
9    of this item (3) of this subsection (c), payment is due on
10    the date specified on the participant's bill. The
11    Department, the Department of Revenue and LAAs shall adopt
12    processes that provide for the timely payment required by
13    this item (3) of this subsection (c).
14        (4) A plan participant is responsible for all actual
15    charges for utility service in excess of the PIPP credit.
16    Pre-program arrears that are included in the Arrearage
17    Reduction Program described in item (5) of this subsection
18    (c) shall not be included in the calculation of the
19    levelized payment plan. Emergency or crisis assistance
20    payments shall not affect the amount of any PIPP credit to
21    which a participant is entitled.
22        (5) Electric and gas utilities subject to this Section
23    shall implement an Arrearage Reduction Program (ARP) for
24    plan participants as follows: for each month that a plan
25    participant timely pays his or her utility bill, the
26    utility shall apply a credit to a portion of the

 

 

10200SB1100sam001- 487 -LRB102 04924 SPS 24488 a

1    participant's pre-program arrears, if any, equal to
2    one-twelfth of such arrearage provided that the total
3    amount of arrearage credits shall equal no more than
4    $1,000 annually for each participant for gas and no more
5    than $1,000 annually for each participant for electricity.
6    In the third year of the PIPP, the Department, in
7    consultation with the Policy Advisory Council established
8    pursuant to Section 5 of this Act, shall determine by rule
9    an appropriate per participant total cap on such amounts,
10    if any. Those plan participants participating in the ARP
11    shall not be subject to the imposition of any additional
12    late payment fees on pre-program arrears covered by the
13    ARP. In all other respects, the utility shall bill and
14    collect the monthly bill of a plan participant pursuant to
15    the same rules, regulations, programs and policies as
16    applicable to residential customers generally.
17    Participation in the Arrearage Reduction Program shall be
18    limited to the maximum amount of funds available as set
19    forth in subsection (f) of Section 13 of this Act. In the
20    event any donated funds under Section 13 of this Act are
21    specifically designated for the purpose of funding the
22    ARP, the Department shall remit such amounts to the
23    utilities upon verification that such funds are needed to
24    fund the ARP. Nothing in this Section shall preclude a
25    utility from continuing to implement, and apply credits
26    under, an ARP in the event that the PIPP or LIHEAP is

 

 

10200SB1100sam001- 488 -LRB102 04924 SPS 24488 a

1    suspended due to lack of funding such that the plan
2    participant does not receive a benefit under either the
3    PIPP or LIHEAP.
4        (5.5) In addition to the ARP described in paragraph
5    (5) of this subsection (c), utilities may also implement a
6    Supplemental Arrearage Reduction Program (SARP) for
7    eligible participants who are not able to become plan
8    participants due to PIPP timing or funding constraints. If
9    a utility elects to implement a SARP, it shall be
10    administered as follows: for each month that a SARP
11    participant timely pays his or her utility bill, the
12    utility shall apply a credit to a portion of the
13    participant's pre-program arrears, if any, equal to
14    one-twelfth of such arrearage, provided that the utility
15    may limit the total amount of arrearage credits to no more
16    than $1,000 annually for each participant for gas and no
17    more than $1,000 annually for each participant for
18    electricity. SARP participants shall not be subject to the
19    imposition of any additional late payment fees on
20    pre-program arrears covered by the SARP. In all other
21    respects, the utility shall bill and collect the monthly
22    bill of a SARP participant under the same rules,
23    regulations, programs, and policies as applicable to
24    residential customers generally. Participation in the SARP
25    shall be limited to the maximum amount of funds available
26    as set forth in subsection (f) of Section 13 of this Act

 

 

10200SB1100sam001- 489 -LRB102 04924 SPS 24488 a

1    and any applicable funds available pursuant to subsection
2    (d-15) of the Illinois Power Agency Act. In the event any
3    donated funds under Section 13 of this Act are
4    specifically designated for the purpose of funding the
5    SARP, the Department shall remit such amounts to the
6    utilities upon verification that such funds are needed to
7    fund the SARP.
8        (6) The Department may terminate a plan participant's
9    eligibility for the PIP Plan upon notification by the
10    utility that the participant's monthly utility payment is
11    more than 75 45 days past due. One-twelfth of a customer's
12    arrearage shall be deducted from the total arrearage owed
13    for each on-time payment made by the customer.
14        (7) The Department, in consultation with the Policy
15    Advisory Council, may adjust the number of PIP Plan
16    participants annually, if necessary, to match the
17    availability of funds. Any plan participant who qualifies
18    for a PIPP credit under a utility's PIPP shall be entitled
19    to participate in and receive a credit under such
20    utility's ARP for so long as such utility has ARP funds
21    available, regardless of whether the customer's
22    participation under another utility's PIPP or ARP has been
23    curtailed or limited because of a lack of funds.
24        (8) The Department shall fully implement the PIPP at
25    the earliest possible date it is able to effectively
26    administer the PIPP. Within 90 days of the effective date

 

 

10200SB1100sam001- 490 -LRB102 04924 SPS 24488 a

1    of this amendatory Act of the 96th General Assembly, the
2    Department shall, in consultation with utility companies,
3    participating alternative suppliers, LAAs and the Illinois
4    Commerce Commission (Commission), issue a detailed
5    implementation plan which shall include detailed testing
6    protocols and analysis of the capacity for implementation
7    by the LAAs and utilities. Such consultation process also
8    shall address how to implement the PIPP in the most
9    cost-effective and timely manner, and shall identify
10    opportunities for relying on the expertise of utilities,
11    LAAs and the Commission. Following the implementation of
12    the testing protocols, the Department shall issue a
13    written report on the feasibility of full or gradual
14    implementation. The PIPP shall be fully implemented by
15    September 1, 2011, but may be phased in prior to that date.
16        (9) As part of the screening process established under
17    item (1) of this subsection (c), the Department and LAAs
18    shall assess whether any energy efficiency or demand
19    response measures are available to the plan participant at
20    no cost, and if so, the participant shall enroll in any
21    such program for which he or she is eligible. The LAAs
22    shall assist the participant in the applicable enrollment
23    or application process.
24        (10) Each alternative retail electric and gas supplier
25    serving residential customers shall elect whether to
26    participate in the PIPP or ARP described in this Section.

 

 

10200SB1100sam001- 491 -LRB102 04924 SPS 24488 a

1    Any such supplier electing to participate in the PIPP
2    shall provide to the Department such information as the
3    Department may require, including, without limitation,
4    information sufficient for the Department to determine the
5    proportionate allocation of credits between the
6    alternative supplier and the utility. If a utility in
7    whose service territory an alternative supplier serves
8    customers contributes money to the ARP fund which is not
9    recovered from ratepayers, then an alternative supplier
10    which participates in ARP in that utility's service
11    territory shall also contribute to the ARP fund in an
12    amount that is commensurate with the number of alternative
13    supplier customers who elect to participate in the
14    program.
15        (11) The PIPP shall be designed and implemented each
16    year to maximize participation and spend at least 80% of
17    the funding available for the year.
18    (d) The Department, in consultation with the Policy
19Advisory Council, shall develop and implement a program to
20educate customers about the PIP Plan and about their rights
21and responsibilities under the percentage of income component.
22The Department, in consultation with the Policy Advisory
23Council, shall establish a process that LAAs shall use to
24contact customers in jeopardy of losing eligibility due to
25late payments. The Department shall ensure that LAAs are
26adequately funded to perform all necessary educational tasks.

 

 

10200SB1100sam001- 492 -LRB102 04924 SPS 24488 a

1    (e) The PIPP shall be administered in a manner which
2ensures that credits to plan participants will not be counted
3as income or as a resource in other means-tested assistance
4programs for low-income households or otherwise result in the
5loss of federal or State assistance dollars for low-income
6households.
7    (f) In order to ensure that implementation costs are
8minimized, the Department and utilities shall work together to
9identify cost-effective ways to transfer information
10electronically and to employ available protocols that will
11minimize their respective administrative costs as follows:
12        (1) The Commission may require utilities to provide
13    such information on customer usage and billing and payment
14    information as required by the Department to implement the
15    PIP Plan and to provide written notices and communications
16    to plan participants.
17        (2) Each utility and participating alternative
18    supplier shall file annual reports with the Department and
19    the Commission that cumulatively summarize and update
20    program information as required by the Commission's rules.
21    The reports shall track implementation costs and contain
22    such information as is necessary to evaluate the success
23    of the PIPP.
24        (3) The Department shall annually prepare and submit a
25    report to the General Assembly, Commission, and Policy
26    Advisory Council that identifies the following amounts for

 

 

10200SB1100sam001- 493 -LRB102 04924 SPS 24488 a

1    the most recently completed year: total moneys collected
2    under subsection (b) of Section 13 of this Act for all
3    PIPPs implemented in the State; total moneys allocated to
4    each utility for implementation of its PIPP, including an
5    accounting of the moneys allocated to each county in the
6    utility's service territory; total moneys disbursed to
7    each utility's customers at a county level; and total
8    moneys allocated to each utility for other purposes,
9    including an accounting of moneys allocated to each county
10    in the utility's service territory and a description of
11    each such other purpose. The Commission shall publish each
12    report prepared pursuant to this paragraph (3) on its
13    website.
14        (4) The Department and the Commission shall have the
15    authority to promulgate rules and regulations necessary to
16    execute and administer the provisions of this Section.
17    (g) Each utility shall be entitled to recover reasonable
18administrative and operational costs incurred to comply with
19this Section from the Supplemental Low Income Energy
20Assistance Fund. The utility may net such costs against monies
21it would otherwise remit to the Funds, and each utility shall
22include in the annual report required under subsection (f) of
23this Section an accounting for the funds collected.
24(Source: P.A. 101-636, eff. 6-10-20.)
 
25    (305 ILCS 20/20 new)

 

 

10200SB1100sam001- 494 -LRB102 04924 SPS 24488 a

1    Sec. 20. Availability to low-income residents. All
2programs offered pursuant to this Act shall be available to
3eligible low-income Illinois residents who qualify for
4assistance under Sections 6 and 18 of this Act, regardless of
5immigration status, using the Supplemental Low-Income Energy
6Assistance Fund for customers of utilities and vendors that
7collect the Energy Assistance Charge and pay into the
8Supplemental Low-Income Energy Assistance Fund.
 
9    Section 90-40. The Consumer Fraud and Deceptive Business
10Practices Act is amended by adding Section 2WWW as follows:
 
11    (815 ILCS 505/2WWW new)
12    Sec. 2WWW. Renewable energy providers and community energy
13subscription providers.
14    (a) As used in this Section:
15    "Community energy subscription provider" is a person who
16enters into agreements with consumers for subscriptions to
17community renewable generation projects.
18    "Community renewable generation project" has the meaning
19set forth in Section 1-10 of the Illinois Power Agency Act.
20    "Electric service provider" has the meaning given that
21phrase in Section 6.5 of the Attorney General Act.
22    "Electric utility" has the meaning set forth in Section
2316-102 of the Public Utilities Act.
24    "Public utility" has the meaning set forth in Section

 

 

10200SB1100sam001- 495 -LRB102 04924 SPS 24488 a

13-105 of the Public Utilities Act.
2    "Renewable energy provider" is a person who enters into
3agreements with consumers for the provision of energy from
4renewable energy resources or physical renewable energy
5resources systems, including, but not limited to, rooftop
6photovoltaic, wind, or geothermal systems.
7    "Renewable energy resources" has the meaning set forth in
8Section 1-10 of the Illinois Power Agency Act.
9    (b) (1) A renewable energy provider or a community energy
10subscription provider that enters into an agreement with a
11consumer for (i) the provision of energy from renewable energy
12resources, (ii) installation of a physical renewable energy
13resources system, including, but not limited to, a rooftop
14photovoltaic, a wind, or a geothermal system, or (iii) a
15subscription to a community renewable generation project,
16shall be subject to the provisions of this Section.
17    (2) Prior to executing any such agreement described in
18paragraph (1) of this subsection (b) through a sale, lease,
19mortgage, financing instrument, purchase power agreement, or
20other contractual arrangement, or executing a change in a
21consumer's selection of a provider of electric service, the
22renewable energy provider or a community energy subscription
23provider must first fully and clearly discloses all material
24terms and conditions of the offer to the consumer in plain
25language, including, but not limited to, the following: (i)
26the total price and, where applicable, the monthly and annual

 

 

10200SB1100sam001- 496 -LRB102 04924 SPS 24488 a

1price; (ii) whether the total price is fixed or variable;
2(iii) if a variable price, an explanation of how the price will
3adjust; (iv) whether there is a termination fee and, if so, an
4explanation of when it applies and in what amounts; (v) the
5terms of any warranty; and (vi) the date and method by which
6the consumer may cancel the transaction or agreement.
7    Prior to entering into a transaction in which a consumer's
8electric supplier is switched, the renewable energy provider
9or community subscription provider must confirm the consumer's
10consent in accordance with one of the methods described in
11Section 2EE of this Act.
12    (c) It shall be a violation of this Section for a renewable
13energy provider or a community energy subscription provider to
14make false or misleading statements about the cost or the
15terms of a transaction that is subject to this Section.
16    (d) (1) A renewable energy provider or a community energy
17subscription provider shall not use the name of a public
18utility in any manner that is deceptive or misleading,
19including, but not limited to, implying or otherwise leading a
20consumer to believe that it is soliciting on behalf of or is an
21agent of a utility.
22    (2) A renewable energy provider or a community energy
23subscription provider shall not state or otherwise imply that
24the renewable energy provider or a community energy
25subscription provider is employed by, representing, endorsed
26by, or acting on behalf of a public utility or public utility

 

 

10200SB1100sam001- 497 -LRB102 04924 SPS 24488 a

1program, a consumer group or consumer group program, or a
2governmental body, unless the renewable energy provider or
3community energy subscription provider has entered into a
4contractual arrangement with the governmental body and has
5been authorized by the governmental body to make the
6statements.
7    (e) Complaints may be filed with the Illinois Commerce
8Commission under this Section (i) by a consumer who engaged in
9a transaction with, or whose electric provider was switched
10by, a renewable energy provider or community energy
11subscription provider who acted in a manner not in compliance
12with this Section or (ii) by the Illinois Commerce Commission
13on its own motion when it appears to the Commission that a
14renewable energy provider or a community energy subscription
15provider has provided service in a manner not in compliance
16with this Section. If, after notice and hearing, the
17Commission finds that a renewable energy provider or a
18community energy subscription provider has violated this
19Section, the consumer shall be permitted to cancel the
20contract without any penalty or termination fee, and the
21Commission may in its discretion do any one or more of the
22following:
23        (1) Require the violating renewable energy provider or
24    community energy subscription provider to refund to the
25    consumer the charges collected in excess of those that
26    would have been charged by the consumer's authorized

 

 

10200SB1100sam001- 498 -LRB102 04924 SPS 24488 a

1    electric service provider.
2        (2) Require the violating renewable energy provider or
3    community energy subscription provider to pay to the
4    consumer's authorized electric service provider the amount
5    the authorized electric service provider would have
6    collected for the electric service. The Commission is
7    authorized to reduce this payment by any amount already
8    paid by the violating provider to the consumer's
9    authorized provider for electric service.
10        (3) Require the violating renewable energy provider or
11    community energy subscription provider to pay a fine of up
12    to $1,000 into the Public Utility Fund for each repeated
13    and intentional violation of this Section.
14        (4) Issue a cease and desist order.
15    (f) The provisions of this Section do not apply to public
16utilities.
 
17
Article 99. Effective Date

 
18    Section 99-99. Effective date. This Act takes effect upon
19becoming law.".