SB1100sam001 102ND GENERAL ASSEMBLY

Sen. Michael E. Hastings

Filed: 3/30/2021

10200SB1100sam001 LRB102 04924 SPS 24488 a

AMENDMENT TO SENATE BILL 1100

AMENDMENT NO. ______. Amend Senate Bill 1100 by replacing everything after the enacting clause with the following:

"Article 5. Energy Community Reinvestment Act

Section 5-1. Short title. This Article may be cited as the Energy Community Reinvestment Act. References in this Article to "this Act" mean this Article.

Section 5-5. Findings. The General Assembly finds that, as part of putting Illinois on a path to 100% renewable energy, the State of Illinois should ensure a just transition to that goal, providing support for the transition of Illinois' communities and workers impacted by closures or reduced use of fossil fuel power plants, nuclear power plants, or coal mines by allocating new economic development resources for business tax incentives, workforce training, site clean-up and reuse, and local tax revenue replacement.

The General Assembly finds and declares that the health, safety, and welfare of the people of this State are dependent upon a healthy economy and vibrant communities; that the closure of fossil fuel power plants, nuclear power plants, and coal mines across the State have a significant impact on their surrounding communities; that the expansion of renewable energy creates job growth and contributes to the health, safety, and welfare of the people of this State; that the continual encouragement, development, growth, and expansion of renewable energy within the State requires a cooperative and continuous partnership between government and the renewable energy sector; and that there are certain areas in this State that have lost, or will lose, jobs due to the closure of fossil fuel power plants, nuclear power plants, and coal mines and need the particular attention of government, labor, and the residents of Illinois to help attract new investment into these areas and directly aid the local community and its residents.

Therefore, it is declared to be the purpose of this Act to explore ways of stimulating the growth of new private investment, including renewable energy investment, in this State and to foster job growth in areas impacted by the closure of coal energy plants, coal mines, and nuclear energy plants.

Section 5-10. Definitions. As used in this Act, unless the context otherwise requires:

"Agencies" or "State agencies" has the same meaning as "State agencies" under Section 1-7 of the Illinois State Auditing Act.

"Board" means the Empowerment Zone Board created in Section 5-20.

"Commission" means the Energy Transition Workforce Commission created in Section 5-45.

"Department" means the Department of Commerce and Economic Opportunity.

"Displaced energy worker" means an energy worker who has lost employment, or is anticipated by the Department to lose employment within the next 2 years, due to the reduced operation or closure of a fossil fuel power plant, nuclear power plant, or coal mine.

"Empowerment Zone" means an area of the State certified by the Department as an Empowerment Zone under this Act.

"Energy worker" means a person who has been employed full-time for a period of one year or longer, and within the previous 5 years, at a fossil fuel power plant, a nuclear power plant, or a coal mine located within the State of Illinois, whether or not they are employed by the owner of the power plant or mine. Energy workers are considered to be full-time if they work at least 35 hours per week for 45 weeks a year or the 1,820 work-hour equivalent with vacations, paid holidays, and sick time, but not overtime, included in this computation. Classification of an individual as an energy worker continues for 5 years from the latest date of employment or the effective date of this Act, whichever is later.

"Environmental justice communities" shall have the meaning set forth in Section 1-56 of the Illinois Power Agency Act and the most recent Commission-approved long-term renewable resources procurement plan of the Illinois Power Agency.

"Fossil fuel power plant" means an electric generating facility powered by gas, coal, other fossil fuels, or a combination thereof.

"Local labor market area" means an economically integrated area within which individuals reside and find employment within a reasonable distance of their places of residence or can readily change jobs without changing their places of residence.

"Low-income" means persons and families whose income does not exceed 80% of area median income, adjusted for family size and revised every 2 years.

Section 5-15. Designation of Empowerment Zones.

(a) Purpose. It is the intent of the General Assembly that designation of a community as an Empowerment Zone shall be reserved for communities that have experienced economic or environmental hardship due to the transition to clean and renewable energy, including closure of fossil fuel power generation, reduction in coal mining and extraction, and the failure to timely recognize the value of the clean attributes of nuclear generation. The purpose of this Section 5-15 is to establish an efficient and equitable process by which the Department and communities across the State may seek the designation of Empowerment Zones. The process conducted by the Department, the Board, and participating units of local government shall be as transparent and inclusive as is reasonably practical.

(b) Notification of local governments. Within 30 days after the effective date of this Act, the Department shall publish a notice on its website stating its intention to begin the review of potential locations for Empowerment Zone regional designations, and solicit information from the public on this topic. Within 45 days after the effective date of this Act, the Department shall submit a notice to the county board of each jurisdiction in which a fossil fuel power plant, coal mine, or nuclear power plant is, or was, within 30 years of the effective date of this Act, located, informing the local governments of their intention to develop a list of Empowerment Zones, providing a basic explanation of the benefits of designation as an Empowerment Zone, and informing them of participation opportunities in the designation process. The Department may notify other persons or local government units of this process at any time.

(c) Proposed list of Empowerment Zones. Within 120 days after the effective date of this Act, the Department shall develop a proposed list of geographic regions in Illinois that qualify as Empowerment Zones. The Department shall work with the Illinois Environmental Protection Agency, the Commission on Environmental Justice, the Department of Labor, the Department of Natural Resources, and community organizations to identify regions impacted by the decline of coal generation, gas generation, nuclear generation, and coal mining to develop the recommended list of regions that qualify for Empowerment Zone designations. The Department shall furnish maps that identify the proposed boundaries of proposed Empowerment Zones, and include justification for the inclusion or exclusion of certain locations or regions. The proposed list shall be subject to the notice and comment process established in subsection (e).

(d) Criteria for designation as an Empowerment Zone. A region shall be proposed by the Department, and certified by the Board as an Empowerment Zone if it meets all of the following characteristics:

(1) the region is a contiguous area, provided that a Zone area may exclude wholly surrounded territory within its boundaries;

(2) the region satisfies any additional criteria established by the Department consistent with the purposes of this Act; and

(3) the region meets one or more of the following:

(A) the area contains a fossil fuel or nuclear power plant that was retired from service or has significantly reduced service within 10 years before the application for designation or will be retired or have service significantly reduced within 5 years following the application for designation;

(B) the area contains a coal mine that was closed or had operations significantly reduced within 10 years before the application for designation or is anticipated to be closed or have operations significantly reduced within 5 years following the application for designation; or

(C) the area contains a nuclear power plant that was decommissioned, but continued storing nuclear waste before the effective date of this Act.

(e) Review and comment process. After developing the proposed list of regions to be designated as Empowerment Zones, or proposing additions to the list, the Department shall conduct a 60-day public comment process, in partnership with the other agencies, departments, and units of local government where beneficial for the purposes of this Section. The public comment process shall include, at a minimum, 2 public hearings that are accessible to working residents, shall prioritize the solicitation of feedback from environmental justice communities and communities directly impacted by the Empowerment Zone designation, and shall provide for the submission of written comments through the Internet.

Within 30 days after concluding the public comment process, the Department shall modify or finalize the proposed list of geographic regions that qualify as Empowerment Zones and submit the list to the Empowerment Zone Board for approval or modification as described in Section 5-20.

(f) Local government self-designation. After the Department submits its first list of proposed Empowerment Zones to the Board, units of local government may, on an ongoing basis, submit applications to the Department to designate an area wholly or partially in their jurisdiction as an Empowerment Zone if the Department has not proposed the region as a potential Empowerment Zone to the Board. Multiple units of local government may submit a joint application for designation if the proposed region or regions fall partially or wholly within their combined jurisdictions. A unit of local government may submit an application to the Department if:

(1) the area meets the criteria for designation as an Empowerment Zone established in subsection (d); and

(2) the unit of local government has conducted at least one public hearing within the proposed Zone area considering all of the following questions: (A) whether to create the Zone; (B) what local plans, tax incentives, and other programs should be established in connection with the zone; and (C) what the boundaries of the Zone should be; public notice of the hearing shall be published in at least one newspaper of general circulation within the Zone area, not more than 21 days nor less than 7 days before the hearing.

An application submitted under this subsection (f) shall include a certified copy of the ordinance designating the proposed Zone; a map of the proposed Empowerment Zone, showing existing streets and highways; an analysis, and any appropriate supporting documents and statistics, demonstrating that the proposed zone area is qualified in accordance with subsection (d); a statement detailing any tax, grant, and other financial incentives or benefits, and any programs, to be provided by the municipality or county to business enterprises within the Zone, which are not otherwise provided throughout the municipality or county; a statement setting forth the economic development and planning objectives for the Zone; an estimate of the economic impact of the Zone, considering all of the tax incentives, financial benefits and programs contemplated, upon the revenues of the municipality or county; a specific definition of the applicant's local labor market area; a transcript of all public hearings on the Zone; and any additional information as the Department may by rule require.

Within 60 days after receiving an application from a unit of local government, the Department shall review the application to determine whether the designated area qualifies as an Empowerment Zone under this Section, and submit its recommendation to the Empowerment Zone Board including all necessary information and records for the Board to review, as described in Section 5-20. Within 7 days after submitting the recommendation to the Board, the Department shall provide a copy of its recommendation to the applicant, including all supporting documents and information submitted to the Board.

(g) Application process. The Department shall develop an ongoing application process for Empowerment Zone applications by units of local government. The application process shall be open through January 1, 2050. The Department, or any predecessor of the Department, may extend the application process beyond that date if it deems it is necessary or prudent to accomplish the purpose of this Act.

(h) Length of designation. An Empowerment Zone designation lasts for 10 years from the effective date of the designation and shall be subject to review by the Board after 10 years for an additional 10-year designation beginning on the expiration date of the Empowerment Zone. During the review process, the Board shall consider the costs incurred by the State and units of local government as a result of benefits received by the Empowerment Zone.

(i) Emergency rulemaking. The Department has emergency rulemaking authority for the purpose of implementation of this Section until 12 months after the effective date of this Act as provided under Section 5-45 of the Illinois Administrative Procedure Act.

Section 5-20. Empowerment Zone Board.

(a) An Empowerment Zone Board is hereby created within the Department.

(b) The Board shall consist of 9 voting members, one of whom shall be the Director of the Department, or his or her designee, who shall serve as chairperson; one of whom shall be the Director of Revenue, or his or her designee; 3 of whom shall be members appointed by the Governor, with the advice and consent of the Senate; one of whom shall be appointed by the Speaker of the House of Representatives; one of whom shall be appointed by the President of the Senate; one of whom shall be appointed by the Minority Leader of the House; and one of whom shall be appointed by the Minority Leader of the Senate. Designees shall be appointed within 60 days after a vacancy. No fewer than 2 of the members shall consist of low-income residents or residents of environmental justice communities. At least 2 of the Board members shall be representatives of organized labor. At least one member shall be a representative of a community with a generation or mine closure. At least one member shall be a representative of the owner or operator of a coal plant that either closed in the past 3 years or has announced a closure. At least one member shall be a representative of the owner or operator of a nuclear plant that either closed or has announced a closure. All meetings shall be accessible, with rotating locations, call-in options, and materials and agendas circulated well in advance, and there shall also be opportunities for input outside of meetings from those with limited capacity and ability to attend, via one-on-one meetings, surveys, and calls.

Board members shall serve without compensation, but may be reimbursed for necessary expenses incurred in the performance of their duties from funds appropriated for that purpose. Each member appointed shall have at least 5 years of experience in business development, economic development, or workforce training. The Department shall provide administrative support to the Board, including the selection of a Department staff member to serve as a Board Liaison between the Department and the Advisory Board.

(c) All final actions by the Board pursuant to this subsection (c) shall require approval by a simple majority of the Board. The Board shall have the following duties:

(1) reviewing applications and extensions for designation as an Empowerment Zone, including Department recommendations, testimony from public hearings, public comment, and supporting materials;

(2) voting to approve, disapprove, or modify applications for designation and extensions as an Empowerment Zone;

(3) the approval of tax credits under the Empowerment Zone Tax Credit Act; and

(4) modifying applications for designation or extensions as an Empowerment Zone before approval.

(d) Within 60 days after submission of applications or tax credits, pursuant to subsection (c) of this Section, to the Board by the Department, the Board shall approve, disapprove, or modify applications for certification of regions as Empowerment Zones. If the Board does not take final action on a submission within 60 days after the submission, the application submitted by the Department shall be considered approved, and the regions proposed in the application shall be certified as Empowerment Zones.

Section 5-25. Incentives for business enterprises located within an Empowerment Zone.

(a) Business enterprises located in Empowerment Zones are eligible to receive an investment credit subject to the requirements of paragraph (1) of subsection (f) of Section 201 of the Illinois Income Tax Act.

(b) Business enterprises are eligible to purchase building materials exempt from use and occupation taxes to be incorporated into their development projects within the Empowerment Zone when purchased from a retailer within the Empowerment Zone under Section 5k-5 of the Retailers' Occupation Tax Act.

(c) Business enterprises located in an Empowerment Zone that meet the qualifications of Section 9-222.1B of the Public Utilities Act are exempt, in part or in whole, from State and local taxes on gas and electricity.

Section 5-30. State incentives regarding public services and physical infrastructure.

(a) The State Treasurer is authorized and encouraged to place deposits of State funds with financial institutions doing business in an Empowerment Zone.

(b) This Act does not restrict tax incentive financing under Division 74.4 of Article 11 of the Illinois Municipal Code.

Section 5-35. Supporting impacted communities.

(a) No later than December 1, 2021, the Department shall develop a process for accepting applications from units of local government included in Empowerment Zones to mitigate the impact of an annual reduction of 30% or more in property tax revenue or other direct payments, or both, from fossil fuel power plants, nuclear power plants, or coal mines to local governments due to the retirement, or reduced operation, of the power plant or mine that occurred after January 1, 2016. In the case of reduced operation, the proposal may only be accepted if the reduction in operation is reasonably expected to be permanent. The Department shall accept applications on an ongoing basis after beginning the program. Local government units may submit applications jointly.

(b) The Department shall use available funds from the Energy Community Reinvestment Fund, subject to the provisions of subsection (c) of Section 5-70, to provide payments to communities for a period of no longer than 5 years from the approval of their proposal, subject to the following restrictions:

(1) Payments shall be assessed based on need, taking into consideration the net amount of any increase in payments from any other State source, including, but not limited to, funding provided based on an evidence-based funding formula developed by the Illinois State Board of Education.

(2) The highest annual payment to the unit of local government cannot exceed the lower value of either (i) the average annual sum of property tax and other direct payments from the fossil fuel power plant, nuclear power plant, or coal mine to the unit of local government from the most recent 3 taxable years before the reduction or cessation of operation of the power plant or coal mine, or (ii)the difference between projected local government revenue for the years for which assistance is requested (taking into account reasonably anticipated new revenue sources) and the average local government revenue from the most recent 3 taxable years before the reduction or cessation of power plant or coal mine operation. The Department may choose to consider budget information from prior years if doing so allows the Department to better measure the revenue impacts of the energy transition.

(3) The Department shall not provide funding under this Program that exceeds the amount specified in this paragraph (3) to any local government unit. Each unit of local government shall not be granted by the Department a total amount of funding over the lifetime of this Program, for each power plant or coal mine, that is greater than 5 times the average annual sum of property tax payments and other direct payments from the power plant or coal mine to the unit of local government, calculated based on the most recent 3 taxable years that occurred before the reduction or cessation of operation of the power plant or coal mine.

(4) The Department may develop a payment schedule that phases out support over time, based on its analysis of available present and anticipated future funding in the Energy Community Reinvestment Fund or other reasons consistent with the purposes of this Act.

(5) If the total amount of qualified proposals exceeds the available present and anticipated future funding in the Energy Community Reinvestment Fund, the Department may prorate payments to units of local government, or prioritize communities for investment based on severity of impact and environmental justice screens in coordination with the Commission on Environmental Justice, and input from stakeholders. The Department shall allocate funding in an equitable and effective manner. Nothing in this Act shall be interpreted to infer that units of local government have a right to revenue replacement from the State.

(6) At least once every 2 years following the allocation of funds for this program, the Department shall publish a document available online detailing the allocation of funds, including a map that shows the geographic distribution of the funds and the locations of Empowerment Zones.

(c) The Department shall contact all units of local government in Empowerment Zones and provide information on the application process for funding under this Section and a reasonable estimate of total funding that will be available for this program. The Department shall request that applications for funding contain the information necessary for the Department to evaluate the fiscal impact of the energy transition on communities located in Empowerment Zones; however the Department shall allow for reasonable flexibility in the applications to accommodate local government units that may have less resources available to prepare an application. The Department shall, to the extent practical, assist local government units in the application process.

(d) The Department shall develop rules to implement the provisions of this Section.

Section 5-40. Empowerment Task Forces.

(a) The Department and the Board shall work with local stakeholders in Empowerment Zones to support the convening of local Empowerment Task Forces.

(b) Local Empowerment Task Forces shall include a broad range of local stakeholders to inform transition needs and include, at a minimum, elected representatives from municipal and State governments, operators of local power plants or mines, multiple representatives from community-based organizations, local environmental, fish, or wildlife groups, organized labor, and the Illinois Environmental Protection Agency.

(c) The Board shall put forward requests for proposals for third-party facilitators for Task Forces in prioritized Empowerment Zones based on need and those facing recent or near-term retirements of plants or mines.

(d) The Department shall work with local Task Forces to develop local transition plans that identify economic, workforce, and environmental health needs with strategies to mitigate energy transition impacts and any accompanying funding requests from the Energy Community Reinvestment Fund.

(e) As part of developing local transition plans, the Department shall work with third-party facilitators and Task Force members to gather and incorporate public comment and feedback into a finalized transition plan.

Section 5-45. Energy Transition Workforce Commission.

(a) The Energy Transition Workforce Commission is hereby created within the Department of Commerce and Economic Opportunity.

(b) The Commission shall consist of the following members:

(1) the Director of Commerce and Economic Opportunity;

(2) the Director of Labor, or his or her designee, who shall serve as chairperson; and

(3) 5 members appointed by the Governor, with the advice and consent of the Senate, of which at least one shall be a representative of a local labor organization, at least one shall be a resident of an environmental justice community, at least one shall be a representative of a national labor organization, and at least one shall be a representative of the administrator of the workforce training program described in subsection (b) of Section 16-108.13 of the Public Utilities Act.

Designees shall be appointed within 60 days after a vacancy.

(c) Members of the Commission shall serve without compensation, but may be reimbursed for necessary expenses incurred in the performance of their duties from funds appropriated for that purpose. The Department of Commerce and Economic Opportunity shall provide administrative support to the Commission.

(d) Within 240 days after the effective date of this Act, the Commission shall produce an Energy Transition Workforce Report regarding the anticipated impact of the energy transition and a comprehensive set of recommendations to address changes to the Illinois workforce during the period of 2020 through 2050, or a later year. The report shall contain the following elements, designed to be used for the programs created in this Act:

(1) Information related to the impact on current workers, including:

(A) a comprehensive accounting of all employees who currently work in fossil fuel energy generation, nuclear energy generation, and coal mining in the State; this shall include information on their location, employer, salary ranges, full-time or part-time status, nature of their work, educational attainment, union status, and other factors the Commission finds relevant; the Commission shall keep a confidential list of these employees and the information necessary to identify them for the purpose of their eligibility to participate in programs designed for their benefit;

(B) the anticipated schedule of closures of fossil fuel power plants, nuclear power plants, and coal mines across the State; when information is unavailable to provide exact data, the report shall include approximations based upon the best available information;

(C) an estimate of worker impacts due to scheduled closures, including layoffs, early retirements, salary changes, and other factors the Commission finds relevant; and

(D) the likely outcome for workers who are employed by facilities that are anticipated to close or have significant layoffs during their tenure or lifetime.

(2) Information regarding impact on communities and local governments, including:

(A) changes in the revenue for units of local government in areas that currently or recently have had a closure or reduction in operation of a fossil fuel power plant, nuclear power plant, coal mine, or related industry;

(B) environmental impacts in areas that currently or recently have had fossil fuel power plants, coal mines, nuclear power plants, or related industry; and

(C) economic impacts of the energy transition, including, but not limited to, the supply chain impacts of the energy transition shift toward new energy sources across the State.

(3) Information on emerging industries and State economic development opportunities in regions that have historically been the site of fossil fuel power plants, nuclear power plants, or coal mining.

(e) Following the completion of each report, or if the Department finds that it is prudent to begin before the completion of a report, the Department shall coordinate with the Commission to create a comprehensive draft plan for designing, maintaining, and funding programs established under this Act, including the Energy Workforce Development Program created under Section 5-50, the Energy Community Development Program created under Section 5-55, and the Displaced Energy Workers Bill of Rights provided under Section 5-60. The draft plan shall include, at a minimum, the following information:

(1) A detailed accounting of the anticipated costs for each program and the anticipated amount of funding that will be provided for each program.

(2) Information on the locations at which each program shall have services provided; if this information is not yet known by the Department at the time of the plan's drafting, the Department shall generally explain how they intend to determine the program locations.

Within 240 days after the effective date of this Act, the Department shall publish the draft plan online. The Department shall take public comments on the draft plan for a period of no less than 45 days and publish the final plan within 60 days after the closing of the comment period.

(f) The Department shall periodically review its findings in the developed reports and make modifications to the report and programs based on new findings. The Department shall conduct a comprehensive reevaluation of the report, and publish a modified version along with a new draft plan, on each of the following years following initial publication: 2023; 2027; 2030; 2035; 2040; and any year thereafter which the Department determines is necessary or prudent.

Section 5-50. Energy Workforce Development Program.

(a) The purpose of the Energy Workforce Development Program is to proactively assist energy workers in their search for economic opportunity.

(b) The Director of Commerce and Economic Opportunity shall design, develop, and administer the Energy Workforce Development Program. The Energy Workforce Development Program shall include the following elements:

(1) comprehensive career services for displaced energy workers, including advising displaced energy workers looking for new positions on finding new employment or preparing for retirement;

(2) communication services to provide displaced energy workers advance notice of any power plant or coal mine closures that are likely to result in a loss of employment for the energy worker;

(3) administrative assistance for displaced energy workers in applying for programs provided by the State, the federal government, nonprofit organizations, or other programs that are designed to offer career or financial assistance;

(4) the creation and maintenance of a registry of all persons in Illinois who qualify as an energy worker to use for coordination with programs created under this Act or other benefits for those workers, including all information necessary or beneficial for the implementation of this Act;

(5) the management of funding for services outlined in this Section; and

(6) financial advice for displaced energy workers designed to assist workers with retirement, a change in positions, pursuing an education, or other goals that the energy worker has identified.

(c) In administering the Energy Workforce Development Program, the Department shall develop and implement the Program with the following goals:

(1) to use the recommendations and information contained in the report created under Section 5-45 to proactively plan for each phase of the energy transition in Illinois;

(2) to increase access to the services contained in this Program by locating services in different regions of the State as dictated by the anticipated schedule of power plant and coal mine closures and regional economic changes;

(3) to maximize the efficiency of resources used;

(4) to design the Energy Workforce Development Program to work in collaboration with the Displaced Energy Workers Bill of Rights; and

(5) any other goals identified by the Department.

Section 5-55. Energy Community Development Program.

(a) The purpose of the Energy Community Development Program is to proactively assist Empowerment Zone communities in their search for economic opportunities leading up to and after the closure of a fossil fuel power plant, nuclear power plant, or coal mine.

(b) The Director of Commerce and Economic Opportunity shall, subject to appropriation, administer the Energy Community Development Program. In administering the Energy Community Development Program, the Department shall:

(1) assist local governments in Empowerment Zones in finding private and public sector partners to invest in regional development;

(2) assist units of local government in finding and negotiating terms with businesses willing to relocate or open new enterprises in regions impacted;

(3) provide coordination services to connect organizations or persons seeking to use tax credits created under Act with units of local government;

(4) conduct outreach and educational events for private sector organizations for the purpose of attracting investment in Empowerment Zones; and

(5) gather and incorporate public comment and feedback so that local knowledge, priorities, and strengths help shape and guide private and public development.

(c) In administering the Energy Community Development Program, the Department shall develop and implement the Program with the following goals:

(1) to increase private sector development in Empowerment Zones;

(2) to replace and improve employment opportunities in Empowerment Zones for community members;

(3) to provide resources for Empowerment Zone communities across the State, and avoid geographic preferences in the allocation of resources; and

(4) to create a healthful environment for community members in Empowerment Zones.

Section 5-60. Displaced Energy Workers Bill of Rights.

(a) The Department shall implement the Displaced Energy Workers Bill of Rights and shall be responsible for the implementation of the Displaced Energy Workers Bill of Rights programs and rights created under this Section. The Department shall provide the following benefits to displaced energy workers listed in paragraphs (1) through (4) of this subsection:

(1) Advance notice of power plant or coal mine closure.

(A) The Department shall notify all energy workers of the upcoming closure of any qualifying facility as far in advance of the scheduled closing date as it can.

(B) In providing the advance notice described in this paragraph (1), the Department shall take reasonable steps to ensure that all displaced energy workers are educated on the various programs available through the Department to assist with the energy transition.

(2) Employment assistance and career services. The Department shall provide displaced energy workers with assistance in finding new sources of employment through the Energy Workforce Development Program established in this Act.

(3) Full-tuition scholarship for Illinois institutions and trade schools.

(A) The Department shall provide any displaced energy worker with a full-tuition scholarship to any of the following programs: (i) public universities in this State; (ii) trade schools in this State; (iii) community college programs in this State; or (iv) union training programs in this State. The Department may set cost caps on the maximum amount of tuition that may be funded.

(B) The Department shall provide information and consultation to displaced energy workers on the various educational opportunities available through this Program, and advise workers on which opportunities meet their needs and preferences.

(C) Displaced energy workers who are eligible for scholarships created under this Section by the date of their enrollment shall be considered eligible for scholarship funding for up to 4 years or until completion of their degree or certification, whichever is the shorter duration.

(4) Financial Planning Services. Displaced energy workers shall be entitled to services as described in the energy worker Programs in this subsection, including financial planning services.

(5) Insurance Alternatives. Displaced energy workers shall be entitled to 24 months of insurance coverage that (A) costs no more than the average monthly premium paid by the worker over the last 12 months and (B) offers the same level of benefits, including, but not limited to, coverage, in-network providers, deductibles, and copayments covered during the previous 12 months.

(b) The owners of power plants with a nameplate capacity of greater than 300 megawatts and the owners of coal mines located in Illinois shall be required to comply with the requirements set out in this subsection (b). The owners shall be required to take the following actions:

(1) provide employment information for energy workers; prior to the closure of an electric generating unit or mine, the owners of the power plant or mine shall provide energy workers information on whether there are employment opportunities provided by their employer; and

(2) maintain responsible retirement account portfolios; employees of qualifying facilities shall have their retirement funds backed by financial tools that are not economically dependent upon the success of their employer's business.

Section 5-65. Consideration of energy worker employment.

(a) All State departments and agencies shall conduct a review of the Department of Commerce and Economic Opportunity's registry of energy workers to determine whether any qualified candidates are displaced energy workers before making a final hiring decision for a position in State employment.

(b) The Department of Commerce and Economic Opportunity shall inform all State agencies and departments of the obligations created by this Section and take steps to ensure compliance.

(c) Nothing in this Section shall be interpreted to indicate that the State is required to hire displaced energy workers for any position.

(d) No part of this Section shall be interpreted to be in conflict with federal or State civil rights or employment law.

Section 5-70. Energy Community Reinvestment Fund.

(a) The General Assembly hereby declares that management of several economic development programs requires a consolidated funding source to improve resource efficiency. The General Assembly specifically recognizes that properly serving communities and workers impacted by the energy transition requires that the Department have access to the resources required for the execution of the programs in the Energy Community Reinvestment Act.

The intent of the General Assembly is that the Energy Community Reinvestment Fund is able to provide all funding for development programs created in the Energy Community Reinvestment Act, and that no additional charge is borne by the taxpayers or utility customers of Illinois absent a deficiency.

(b) The Energy Community Reinvestment Fund is created as a special fund in the State treasury to be used by the Department for purposes provided under this Section. The Fund shall be used to fund programs specified under subsection (c). The objective of the Fund is to provide transition benefits as described in this Act to displaced energy workers and to bring economic development to communities in this State in a manner that equitably maximizes economic opportunity in all communities by increasing efficiency of resource allocation across the programs listed in subsection (c). The Department shall include a description of its proposed approach to the design, administration, implementation, and evaluation of the Fund, as part of the Energy Transition Workforce Plan described in this Act. Contracts that will be paid with moneys in the Fund shall be executed by the Department.

(c) The Department shall be responsible for the administration of the Fund and shall allocate funding on the basis of priorities established in this Section. Each year, the Department shall determine the available amount of resources in the Fund that can be allocated to the programs identified in this Section, and allocate the funding accordingly. The Department shall, to the extent practical, consider both the short-term and long-term costs of the programs and allocate, save, or invest funding so that the Department is able to cover both the short-term and long-term costs of these programs using projected revenue.

The available funding for each year shall be allocated from the Fund in the following order of priority:

(1) for costs related to the Energy Community Development programs in this Act, up to $2,000,000;

(2) for costs related to the Energy Workforce Development programs and the Displaced Energy Workers Bill of Rights in this Act, including all programs created by the Energy Transition Workforce Commission, up to $13,000,000 annually; and

(3) for costs, up to $100,000,000 annually, to support units of local government in Empowerment Zones, as described in Section 5-35.

(d) The Department shall, on an ongoing basis, seek out and apply for funding from alternative sources to cover the costs of these programs. Alternative sources may include the federal government, other State programs, funding provided through subsection (d-16) of Section 1-75 of the Illinois Power Agency Act, private foundations, donors, or other opportunities for funding. The Department shall, as described in subsection (c), use any additional funding obtained for these programs to reduce or eliminate any costs borne by taxpayers and utility customers.

(e) Notwithstanding any other law to the contrary, the Energy Community Reinvestment Fund is not subject to sweeps, administrative chargebacks, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Energy Community Reinvestment Fund into any other fund of the State.

(f) The Department is granted all powers necessary for the implementation of this Section.

Section 5-75. Administrative review. All final administrative decisions, including, but not limited to, funding allocation and rules issued by the Department under this Act are subject to judicial review under the Administrative Review Law. No action may be commenced under this Section prior to 60 days after the complainant has given notice in writing of the action to the Department.

Article 10. Empowerment Zone Tax Credit Act

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

Part 1.

Section 10-100. Definitions. As used in this Part 1:

"Applicant" means a person that is operating a business located within the State of Illinois and has applied for an income tax credit through a program under this Act.

"Basic wage" means compensation for employment that meets the prevailing wage standards as defined by the Department.

"Certificate" means the tax credit certificate issued by the Department under Section 10-125.

"Certificate of eligibility" means the certificate issued by the Department under Section 10-110.

"Credit" means the amount awarded by the Department to an applicant by issuance of a certificate under Section 10-125 for each new full-time equivalent employee hired or job created.

"Department" means the Department of Commerce and Economic Opportunity.

"Director" means the Director of Commerce and Economic Opportunity.

"Former energy worker" means an individual who is employed, or was employed, at a fossil fuel power plant, nuclear power plant, or coal mine, and is listed in the registry of energy workers developed by the Department of Commerce and Economic Opportunity pursuant to Section 5-50 of the Energy Community Reinvestment Act.

"Full-time employee" means an individual who is employed at a prevailing wage for at least 35 hours each week, and provided standard worker benefits, or who renders any other standard of service generally accepted by industry custom or practice as full-time employment. An individual for whom a W-2 is issued by a Professional Employer Organization is a full-time employee if he or she is employed in the service of the applicant for a basic wage for at least 35 hours each week or renders any other standard of service generally accepted by industry custom or practice as full-time employment. For the purposes of this Act, such an individual shall be considered a full-time employee of the applicant.

"Incentive period" means the period beginning on July 1 and ending on June 30 of the following year. The first incentive period shall begin on July 1, 2021 and the last incentive period shall end on June 30, 2040.

"New employee" means a full-time employee:

(1) who first became employed by an applicant within the incentive period whose hire results in a net increase in the applicant's full-time Illinois employees and who is receiving a prevailing wage as compensation; and

(2) who was previously employed in a fossil fuel power plant, nuclear power plant, or coal mine in the State of Illinois that has since closed.

"New employee" does not include:

(1) a person who was previously employed in Illinois by the applicant or a related member, unless the new employee is hired for site remediation work; or

(2) a person who has a direct or indirect ownership interest of at least 5% in the profits, capital, or value of the applicant or a related member; or

(3) a person who has been hired to assist in the production of fossil fuel derived energy directly or indirectly, unless that person has been hired to assist in the deconstruction of a fossil fuel power plant, the deconstruction of a coal mine, the remediation of a site formerly used for fossil fuel power production, or the remediation of a coal mine.

"Noncompliance date" means, in the case of an applicant that is not complying with the requirements of this Act, the day following the last date upon which the taxpayer was in compliance with the requirements of this Act, as determined by the Director under Section 10-135.

"Professional Employer Organization" has the same meaning as ascribed to that term under Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act. "Professional Employer Organization" does not include a day and temporary labor service agency regulated under the Day and Temporary Labor Services Act.

"Related member" means a person that, with respect to the applicant's annual incentive period, is any one of the following:

(1) An individual, if the individual and the members of the individual's family, as defined in Section 318 of the Internal Revenue Code, own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the outstanding profits, capital, stock, or other ownership interest in the applicant.

(2) A partnership, estate, or trust and any partner or beneficiary, if the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the profits, capital, stock, or other ownership interest in the applicant.

(3) A corporation, and any party related to the corporation, in a manner that would require an attribution of stock from the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the applicant and any other related member own, in the aggregate, directly, indirectly, beneficially, or constructively, at least 50% of the value of the corporation's outstanding stock.

(4) A corporation and any party related to that corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the corporation and all such related parties own, in the aggregate, at least 50% of the profits, capital, stock, or other ownership interest in the applicant.

(5) A person to or from whom there is attribution of stock ownership in accordance with subsection (e) of Section 1563 of the Internal Revenue Code, except that for purposes of determining whether a person is a related member under this paragraph (5):

(A) stock owned, directly or indirectly, by or for a partnership shall be considered as owned by any partner having an interest of 20% or more in either the capital or profits of the partnership in proportion to his or her interest in capital or profits, whichever such proportion is the greater;

(B) stock owned, directly or indirectly, by or for an estate or trust shall be considered as owned by any beneficiary who has an actuarial interest of 20% or more in such stock, to the extent of such actuarial interest. For purposes of this subparagraph, the actuarial interest of each beneficiary shall be determined by assuming the maximum exercise of discretion by the fiduciary in favor of such beneficiary and the maximum use of such stock to satisfy his or her rights as a beneficiary; and

(C) stock owned, directly or indirectly, by or for a corporation shall be considered as owned by any person who owns 20% or more in value of its stock in that proportion which the value of the stock which the person so owns bears to the value of all the stock in the corporation.

Section 10-105. Powers of the Department. The Department, in addition to those powers granted under the Civil Administrative Code of Illinois, is granted and shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this Act, including, but not limited to, power and authority to:

(1) Adopt rules deemed necessary and appropriate for the administration of this Act; establish forms for applications, notifications, contracts, or any other agreements; and accept applications at any time during the year and require that all applications be submitted electronically through the Internet.

(2) Provide guidance and assistance to applicants under the provisions of this Act, and cooperate with applicants to promote, foster, and support job creation within this State.

(3) Enter into agreements and memoranda of understanding for participation of and engage in cooperation with agencies of the federal government, units of local government, universities, research foundations or institutions, regional economic development corporations, or other organizations for the purposes of this Act.

(4) Gather information and conduct inquiries, in the manner and by the methods it deems desirable, including, without limitation, gathering information with respect to applicants for the purpose of making any designations or certifications necessary or desirable or to gather information in furtherance of the purposes of this Act.

(5) Establish, negotiate, and effectuate any term, agreement, or other document with any person necessary or appropriate to accomplish the purposes of this Act, and consent, subject to the provisions of any agreement with another party, to the modification or restructuring of any agreement to which the Department is a party.

(6) Provide for sufficient personnel to permit administration, staffing, operation, and related support required to adequately discharge its duties and responsibilities described in this Act from funds made available through charges to applicants or from funds as may be appropriated by the General Assembly for the administration of this Act.

(7) Require applicants, upon written request, to issue any necessary authorization to the appropriate federal, State, or local authority or any other person for the release to the Department of information requested by the Department, with the information requested to include, but not be limited to, financial reports, returns, or records relating to the applicant or to the amount of credit allowable under this Act.

(8) Require that an applicant shall at all times keep proper books of record and account in accordance with generally accepted accounting principles consistently applied, with the books, records, or papers related to the agreement in the custody or control of the applicant open for reasonable Department inspection and audits, and including, without limitation, the making of copies of the books, records, or papers.

(9) Take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of financial assistance or participation required under this Act, including the power to sell, dispose of, lease, or rent, upon terms and conditions determined by the Director to be appropriate, real or personal property that the Department may recover as a result of these actions.

Section 10-110. Certificate of eligibility for tax credit.

(a) An applicant that has hired a former energy worker as a new employee during the incentive period may apply for a certificate of eligibility for the credit with respect to that position on or after the date of hire of the new employee. The date of hire shall be the first day on which the employee begins providing services for basic wage compensation.

(b) An applicant may apply for a certificate of eligibility for the credit for more than one new employee on or after the date of hire of each qualifying new employee.

(c) After receipt of an application under this Section, the Department shall issue a certificate of eligibility to the applicant that states the following:

(1) the date and time on which the application was received by the Department and an identifying number assigned to the applicant by the Department;

(2) the maximum amount of the credit the applicant could potentially receive under this Act with respect to the new employees listed on the application; and

(3) the maximum amount of the credit potentially allowable on certificates of eligibility issued for applications received prior to the application for which the certificate of eligibility is issued.

Section 10-115. Tax credit.

(a) Subject to the conditions set forth in this Act, an applicant is entitled to a credit against payment of taxes withheld under Section 704A of the Illinois Income Tax Act:

(1) for former energy workers hired as new employees who the applicant hires and retains for a minimum of one year; and

(2) in the amount of:

(A) 30% of the salary paid to the new employee for employees hired and retained for between the time of hiring and one year;

(B) 25% of the salary paid to the new employee for employees hired and retained between one year and 2 years; and

(C) 20% of the salary paid to the new employee for employees hired and retained between 2 years and 3 years.

(b) The Department shall make credit awards under this Act to further job creation.

(c) The credit shall be claimed for the first calendar year ending on or after the date on which the certificate is issued by the Department.

(d) The net increase in full-time Illinois employees, measured on an annual full-time equivalent basis, shall be the total number of full-time Illinois employees of the applicant on the final day of the incentive period, minus the number of full-time Illinois employees employed by the employer on the first day of that same incentive period. For purposes of the calculation, an employer that begins doing business in this State during the incentive period, as determined by the Director, shall be treated as having zero Illinois employees on the first day of the incentive period.

(e) The net increase in the number of full-time Illinois employees of the applicant under subsection (d) must be sustained continuously for at least 12 months, starting with the date of hire of a new employee during the incentive period. Eligibility for the credit does not depend on the continuous employment of any particular individual. For purposes of this subsection (e), if a new employee ceases to be employed before the completion of the 12-month period for any reason, the net increase in the number of full-time Illinois employees shall be treated as continuous if a different new employee is hired as a replacement within a reasonable time for the same position. The new employees must be hired to fill positions that the applicant reasonably anticipates will be available for the new employee as a long-term position. For the purposes of this subsection (e), "long-term position" means a position that will be available for 3 years or longer.

(f) The Department shall adopt rules to enable an applicant for which a Professional Employer Organization has been contracted to issue W-2s and make payment of taxes withheld under Section 704A of the Illinois Income Tax Act for new employees to retain the benefit of tax credits to which the applicant is otherwise entitled under this Act.

Section 10-120. Maximum amount of credits allowed. The Department shall limit the monetary amount of credits awarded under this Act to no more than $25,000,000 annually during the incentive period. If applications for a greater amount are received, credits shall be allowed on a first-come, first-served basis, based on the date on which each properly completed application for a certificate of eligibility is received by the Department. If more than one certificate of eligibility is received on the same day, the credits shall be awarded based on the time of submission for that particular day.

Section 10-125. Application for award of tax credit; tax credit certificate.

(a) On or after the conclusion of the 12-month period, or other period, after a new employee has been hired, for the purposes of subsection (a) of Section 10-115, an applicant shall file with the Department an application for award of a credit. The application shall include the following:

(1) the names, Social Security numbers, job descriptions, salary or wage rates, and dates of hire of the new employees with respect to whom the credit is being requested;

(2) a certification that each new employee listed has been retained on the job for at least one year from the date of hire;

(3) the number of new employees hired by the applicant during the incentive period;

(4) the net increase in the number of full-time Illinois employees of the applicant, including the new employees listed in the request, between the beginning of the incentive period and the dates on which the new employees listed in the request were hired;

(5) an agreement that the Director is authorized to verify with the appropriate State agencies the information contained in the request before issuing a certificate to the applicant; and

(6) any other information the Department determines to be appropriate.

(b) Although an application may be filed at any time after the conclusion of the 12-month period after a new employee was hired, an application filed more than 90 days after the earliest date on which it could have been filed shall not be awarded any credit if, prior to the date it is filed, the Department has received applications under this Section for credits totaling more than $30,000,000.

(c) The Department shall issue a certificate to each applicant awarded a credit under this Act. The certificate shall include the following:

(1) the name and taxpayer identification number of the applicant;

(2) the date on which the certificate is issued;

(3) the credit amount that will be allowed; and

(4) any other information the Department determines to be appropriate.

Section 10-130. Submission of tax credit certificate to the Department of Revenue. An applicant claiming a credit under this Act shall submit to the Department of Revenue a copy of each certificate issued under Section 10-125 with the first tax return for which the credit shown on the certificate is claimed. Failure to submit a copy of the certificate with the applicant's tax return shall not invalidate a claim for a credit.

Section 10-135. Administrative review.

(a) If the Director determines that an applicant who has received a credit under this Act is not complying with the requirements of this Act, the Director shall provide notice to the applicant of the alleged noncompliance, and allow the taxpayer a hearing under the provisions of the Illinois Administrative Procedure Act. If, after the notice and hearing, the Director determines that noncompliance exists, the Director shall issue to the Department of Revenue notice to that effect, and state the date of noncompliance.

(b) All final administrative decisions, including, but not limited to, funding allocation and rules issued by the Department under this Act are subject to judicial review under the Administrative Review Law. No action may be commenced under this Section prior to 60 days after the complainant has given notice in writing of the action to the Department.

Section 10-140. Rules. The Department may adopt rules necessary to implement this Part 1. The rules may provide for recipients of credits under this Part 1 to be charged fees to cover administrative costs of the tax credit program.

Part 2.

Section 10-200. Definitions. As used in this Part 2:

"Agreement" means the agreement between a taxpayer and the Department entered into for a tax credit awarded under Section 10-210.

"Applicant" means a taxpayer operating a business enterprise, as determined under the Energy Community Reinvestment Act, located within or that the business enterprise plans to locate within an Empowerment Zone. "Applicant" does not include a taxpayer who closes or substantially reduces an operation at one location in this State and relocates substantially the same operation to a location in an Empowerment Zone. A taxpayer is not prohibited from expanding its operations at a location in an Empowerment Zone, provided that existing operations of a similar nature located within the State are not closed or substantially reduced. A taxpayer is also not prohibited from moving operations from one location in this State to an Empowerment Zone for the purpose of expanding the operation provided that the Department determines that expansion cannot reasonably be accommodated within the municipality in which the business is located, or in the case of a business located in an incorporated area of the county, within the county in which the business is located, after conferring with the chief elected official of the municipality or county and taking into consideration any evidence offered by the municipality or county regarding the ability to accommodate expansion within the municipality or county.

"Board" means the Empowerment Zone Board created under Section 5-20 of the Illinois Energy Community Reinvestment Act.

"Credit" means the amount agreed to between the Department and the Applicant under this Act, but not to exceed the lesser of: (1) the sum of (i) 50% of the incremental income tax attributable to new employees at the applicant's project and (ii) 10% of the training costs of new employees; or (2) 100% of the incremental income tax attributable to new employees at the applicant's project. If the project is located in an underserved area, then the amount of the credit may not exceed the lesser of: (1) the sum of (i) 75% of the incremental income tax attributable to new employees at the applicant's project and (ii) 10% of the training costs of new employees; or (2) 100% of the incremental income tax attributable to new employees at the applicant's project. If an applicant agrees to hire the required number of new employees, then the maximum amount of the credit for that applicant may be increased by an amount not to exceed 25% of the incremental income tax attributable to retained employees at the applicant's project; provided that, in order to receive the increase for retained employees, the applicant must provide the additional evidence required under paragraph (3) of subsection (c) of Section 10-215.

"Department" means the Department of Commerce and Economic Opportunity.

"Director" means the Director of Commerce and Economic Opportunity.

"Full-time employee" means an individual who is employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment. An individual for whom a W-2 is issued by a Professional Employer Organization is a full-time employee if employed in the service of the applicant for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment to the applicant.

"Incremental income tax" means the total amount withheld during the taxable year from the compensation of new employees and, if applicable, retained employees under Article 7 of the Illinois Income Tax Act arising from employment at a project that is the subject of an agreement.

"New employee" means a full-time employee first employed by a taxpayer in the project that is the subject of an agreement and who is hired after the taxpayer enters into the agreement.

"New employee" does not include:

(1) an employee of the taxpayer who performs a job that was previously performed by another employee, if that job existed for at least 6 months before hiring the employee;

(2) an employee of the taxpayer who was previously employed in Illinois by a related member of the taxpayer and whose employment was shifted to the taxpayer after the taxpayer entered into the agreement; or

(3) a child, grandchild, parent, or spouse, other than a spouse who is legally separated from the individual, of any individual who has a direct or an indirect ownership interest of at least 5% in the profits, capital, or value of the taxpayer.

Notwithstanding any other provisions of this Section, an employee may be considered a new employee under the agreement if the employee performs a job that was previously performed by an employee who was: (i) treated under the agreement as a new employee; and (ii) promoted by the taxpayer to another job.

Notwithstanding any other provisions of this Section, the Department may award a credit to an applicant with respect to an employee hired prior to the date of the agreement if: (i) the applicant is in receipt of a letter from the Department stating an intent to enter into a credit agreement; (ii) the letter described in item (i) of this paragraph is issued by the Department not later than 15 days after the effective date of this Act; and (iii) the employee was hired after the date the letter described in item (i) of this paragraph was issued.

"Pass-through entity" means an entity that is exempt from the tax under subsection (b) or (c) of Section 205 of the Illinois Income Tax Act.

"Related member" means a person that, with respect to the taxpayer during any portion of the taxable year, is any one of the following:

(1) An individual stockholder, if the stockholder and the members of the stockholder's family, as defined in Section 318 of the Internal Revenue Code, own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the taxpayer's outstanding stock.

(2) A partnership, estate, or trust and any partner or beneficiary, if the partnership, estate, or trust, and its partners or beneficiaries own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the profits, capital, stock, or value of the taxpayer.

(3) A corporation, and any party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the taxpayer owns directly, indirectly, beneficially, or constructively at least 50% of the value of the corporation's outstanding stock.

(4) A corporation and any party related to that corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the corporation and all such related parties own in the aggregate at least 50% of the profits, capital, stock, or value of the taxpayer.

(5) A person to or from whom there is attribution of stock ownership in accordance with subsection (e) of Section 1563 of the Internal Revenue Code, except that for purposes of determining whether a person is a related member under this paragraph (5):

(A) stock owned, directly or indirectly, by or for a partnership shall be considered as owned by any partner having an interest of 20% or more in either the capital or profits of the partnership in proportion to his or her interest in capital or profits, whichever such proportion is the greater;

(B) stock owned, directly or indirectly, by or for an estate or trust shall be considered as owned by any beneficiary who has an actuarial interest of 20% or more in such stock, to the extent of such actuarial interest. For purposes of this subparagraph, the actuarial interest of each beneficiary shall be determined by assuming the maximum exercise of discretion by the fiduciary in favor of such beneficiary and the maximum use of such stock to satisfy his or her rights as a beneficiary; and

(C) stock owned, directly or indirectly, by or for a corporation shall be considered as owned by any person who owns 20% or more in value of its stock in that proportion which the value of the stock which the person so owns bears to the value of all the stock in the corporation.

"Taxpayer" means an individual, corporation, partnership, or other entity that has any Illinois income tax liability.

"Underserved area" means a geographic area that meets one or more of the following conditions:

(1) the area has a poverty rate of at least 20% according to the latest federal decennial census;

(2) 75% or more of the children in the area participate in the federal free lunch program according to reported statistics from the State Board of Education;

(3) at least 20% of the households in the area receive assistance under the Supplemental Nutrition Assistance Program; or

(4) the area has an average unemployment rate, as determined by the Department of Employment Security, that is more than 120% of the national unemployment average, as determined by the United States Department of Labor, for a period of at least 2 consecutive calendar years preceding the date of the application.

Section 10-205. Powers of the Department. The Department, in addition to those powers granted under the Civil Administrative Code of Illinois and Part 1 of this Act, is granted and has all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this Act, including, but not limited to, power and authority to:

(1) Adopt rules deemed necessary and appropriate for the administration of programs; establish forms for applications, notifications, contracts, or any other agreements; and accept applications at any time during the year.

(2) Provide and assist taxpayers pursuant to the provisions of this Act, and cooperate with taxpayers that are parties to agreements to promote, foster, and support economic development, capital investment, and job creation or retention within the Empowerment Zone.

(3) Enter into agreements and memoranda of understanding for participation of and engage in cooperation with agencies of the federal government, units of local government, universities, research foundations or institutions, regional economic development corporations, or other organizations for the purposes of this Act.

(4) Gather information and conduct inquiries, in the manner and by the methods as it deems desirable, including, without limitation, gathering information with respect to applicants for the purpose of making any designations or certifications necessary or desirable or to gather information to assist the Board with any recommendation or guidance in the furtherance of the purposes of this Act.

(5) Establish, negotiate and effectuate any term, agreement or other document with any person, necessary or appropriate to accomplish the purposes of this Act, and consent, subject to the provisions of any agreement with another party, to the modification or restructuring of any agreement to which the Department is a party.

(6) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses from applicants, including, without limitation, any application fees, commitment fees, program fees, financing charges, or publication fees as deemed appropriate to pay expenses necessary or incident to the administration, staffing, or operation in connection with the Department's or Board's activities under this Act, or for preparation, implementation, and enforcement of the terms of the agreement, or for consultation, advisory and legal fees, and other costs. All fees and expenses incident thereto shall be the responsibility of the applicant.

(7) Provide for sufficient personnel to permit administration, staffing, operation, and related support required to adequately discharge its duties and responsibilities described in this Act from funds made available through charges to applicants or from funds as may be appropriated by the General Assembly for the administration of this Act.

(8) Require applicants, upon written request, to issue any necessary authorization to the appropriate federal, State, or local authority for the release of information concerning a project being considered under the provisions of this Act, with the information requested to include, but not be limited to, financial reports, returns, or records relating to the taxpayer or its project.

(9) Require that a taxpayer shall at all times keep proper books of record and account in accordance with generally accepted accounting principles consistently applied, with the books, records, or papers related to the agreement in the custody or control of the taxpayer open for reasonable Department inspection and audits, and including, without limitation, the making of copies of the books, records, or papers, and the inspection or appraisal of any of the taxpayer or project assets.

(10) Take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of financial assistance or participation required under this Act, including the power to sell, dispose, lease, or rent, upon terms and conditions determined by the Director to be appropriate, real or personal property that the Department may receive as a result of these actions.

Section 10-210. Tax credit awards.

(a) Subject to the conditions set forth in this Act, a taxpayer is entitled to a credit against or, as described in subsection (g), a payment toward taxes imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act that may be imposed on the taxpayer for a taxable year beginning on or after January 1, 2019, if the taxpayer is awarded a credit by the Department under this Act for that taxable year.

(b) The Department shall make credit awards under this Act to foster job creation and the development of businesses in Empowerment Zones.

(c) A person that proposes a project to create new jobs and to invest in the development of a capital investment project in an Empowerment Zone must enter into an agreement with the Department for the credit under this Act.

(d) The credit shall be claimed for the taxable years specified in the agreement.

(e) The credit shall not exceed the incremental income tax attributable to the project that is the subject of the agreement.

(f) Nothing herein shall prohibit a tax credit award to an applicant that uses a Professional Employer Organization if all other award criteria are satisfied.

(g) A pass-through entity that has been awarded a credit under this Act, its shareholders, or its partners may treat some or all of the credit awarded under this Act as a tax payment for purposes of the Illinois Income Tax Act. In no event shall the amount of the award credited under this Act exceed the Illinois income tax liability of the pass-through entity or its shareholders or partners for the taxable year.

For the purposes of this subsection (g), "tax payment" means a payment as described in Article 6 or Article 8 of the Illinois Income Tax Act or a composite payment made by a pass-through entity on behalf of any of its shareholders or partners to satisfy such shareholders' or partners' taxes imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act.

Section 10-215. Application for a project to create and retain new jobs and to develop new business enterprises.

(a) Any business enterprise proposing a capital investment project located or planned to be located in an Empowerment Zone may request consideration for designation of its project, by formal written letter of request or by formal application to the Department, in which the applicant states its intent to make at least a specified level of investment and intends to hire or retain a specified number of full-time employees at a designated location in Illinois. As circumstances require, the Department may require a formal application from an applicant and a formal letter of request for assistance.

(b) In order to qualify for credits under this Act, an applicant's project must:

(1) if the applicant has more than 100 employees, involve an investment of at least $2,500,000 in capital improvements to be placed in service within an Empowerment Zone as a direct result of the project. If the applicant has 100 or fewer employees, then there is no capital investment requirement; and

(2) if the applicant has more than 100 employees, employ a number of new employees in the Empowerment Zone equal to the lesser of: (A) 10% of the number of full-time employees employed by the applicant world-wide on the date the application is filed with the Department; or (B) 50 new employees. If the applicant has 100 or fewer employees, employ a number of new employees in the State equal to the lesser of: (A) 5% of the number of full-time employees employed by the applicant world-wide on the date the application is filed with the Department; or (B) 50 new employees.

(c) After receipt of an application, the Department shall review the application, make inquiries, and conduct studies in the manner and by the methods as it deems desirable, and consult with and make a recommendation to the Empowerment Zone Board created under the Energy Community Reinvestment Act. The Department and the Board shall make its recommendations and approvals based on whether they determine that all of the following conditions exist:

(1) The applicant's project will make the required investment in the State and the applicant intends to hire the required number of new employees in Illinois as a result of that project, as described in this Act.

(2) The applicant's project is economically sound and will benefit the people of the State of Illinois by increasing opportunities for employment and strengthening the economy of Illinois.

(3) That, if not for the credit, the project would not occur in Illinois or in the Empowerment Zone, which may be demonstrated by evidence that receipt of the credit is essential to the applicant's decision to create new jobs in the State, such as the magnitude of the cost differential between Illinois and a competing state.

(4) The political subdivisions affected by the project have committed local incentives or other support with respect to the project, considering local ability to assist.

(5) Awarding the credit will result in an overall positive fiscal impact to the State, as certified by the Board using the best available data.

(6) The credit is not prohibited by Section 10-220.

(d) After approval by the Board, the Department may enter into an agreement with the applicant.

Section 10-220. Relocation of jobs to Empowerment Zone. A taxpayer is not entitled to claim the credit provided by this Act with respect to any jobs that the taxpayer relocates from one site in Illinois to another site in an Empowerment Zone. A taxpayer with respect to a qualifying project certified under the Corporate Headquarters Relocation Act, however, is not subject to the requirements of this Section, but is nevertheless considered an applicant for purposes of this Act. Moreover, any full-time employee of an eligible business enterprise relocated to an Empowerment Zone in connection with that qualifying project is deemed to be a new employee for purposes of this Act. Determinations under this Section shall be made by the Department.

Section 10-225. Determination of the amount of credit. In determining the amount of credit that should be awarded, the Board shall provide guidance on, and the Department shall take into consideration, all of the following factors:

(1) the number and location of jobs created and retained in relation to the economy of the Empowerment Zone where the projected investment is to occur;

(2) the potential impact on the economy of the Empowerment Zone;

(3) the incremental payroll attributable to the project;

(4) the capital investment attributable to the project;

(5) the amount of the average wage and benefits paid by the applicant in relation to the wage and benefits of the Empowerment Zone;

(6) the costs to Illinois and the affected political subdivisions with respect to the project; and

(7) the financial assistance that is otherwise provided by Illinois and the affected political subdivisions.

Section 10-230. Amount and duration of credit.

(a) The Department shall determine the amount and duration of the credit awarded under this Act. The duration of the credit may not exceed 10 taxable years. The credit may be stated as a percentage of the incremental income tax attributable to the applicant's project and may include a fixed dollar limitation. An agreement for the credit must be finalized and signed by all parties while the area in which the project is located is designated an Empowerment Zone. The credit may last longer than the applicable Empowerment Zone designation. Agreements entered into prior to the de-designation of an Empowerment Zone shall be honored for the length of the agreement.

(b) Notwithstanding subsection (a), and except as the credit may be applied in a carryover year as otherwise provided in this subsection (b), the credit may be applied against the State income tax liability in more than 10 taxable years, but not in more than 15 taxable years for an eligible green energy enterprise that: (i) qualifies under this Act and the Corporate Headquarters Relocation Act and has in fact undertaken a qualifying project within the time frame specified by the Department of Commerce and Economic Opportunity under that Act; and (ii) applies against its State income tax liability, during the entire 15-year period, no more than 60% of the maximum credit per year that would otherwise be available under this Act.

Any credit that is unused in the year the credit is computed may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, the earlier credit shall be applied first.

Section 10-235. Contents of agreements with applicants. The Department shall enter into an agreement with an applicant that is awarded a credit under this Act.

Section 10-240. Certificate of verification; submission to the Department of Revenue. A taxpayer claiming a credit under this Act shall submit to the Department of Revenue a copy of the Director's certificate of verification under this Act for the taxable year. Failure to submit a copy of the certificate with the taxpayer's tax return shall not invalidate a claim for a credit.

Section 10-245. Supplier diversity. Each taxpayer claiming a credit under this Act shall, no later than April 15 of each taxable year for which the taxpayer claims a credit under this Act, submit to the Department of Commerce and Economic Opportunity an annual report containing the information described in subsections (b), (c), (d), and (e) of Section 5-117 of the Public Utilities Act. Those reports shall be submitted in the form and manner required by the Department of Commerce and Economic Opportunity.

Section 10-250. Pass-through entity. The shareholders or partners of a taxpayer that is a pass-through entity shall be entitled to the credit allowed under the agreement. The credit is in addition to any credit to which a shareholder or partner is otherwise entitled under a separate agreement under this Act. A pass-through entity and a shareholder or partner of the pass-through entity may not claim more than one credit under the same agreement.

Section 10-255. Rules. The Department may adopt rules necessary to implement this Part 2. The rules may provide for recipients of credits under this Part 2 to be charged fees to cover administrative costs of the tax credit program. Fees collected shall be deposited into the Energy Community Reinvestment Fund.

Section 10-260. Program terms and conditions.

(a) Any documentary materials or data made available or received by any member of a board or any agent or employee of the Department shall be deemed confidential and shall not be deemed public records to the extent that the materials or data consists of trade secrets, commercial or financial information regarding the operation of the business conducted by the applicant for or recipient of any tax credit under this Act, or any information regarding the competitive position of a business in a particular field of endeavor.

(b) Nothing in this Act shall be construed as creating any rights in any applicant to enter into an agreement or in any person to challenge the terms of any agreement.

Article 90. Amendatory Provisions

Section 90-5. The Illinois Administrative Procedure Act is amended by adding Section 45-8 as follows:

(5 ILCS 100/45-8 new)

Sec. 45-8. Emergency rulemaking; Energy Community Reinvestment Act. To provide for the expeditious and timely implementation of the Energy Community Reinvestment Act, emergency rules may be adopted in accordance with Section 5-45 by the Department of Commerce and Economic Opportunity to implement Section 5-15 of the Energy Community Reinvestment Act with respect to applications for designation as Empowerment Zones. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

Section 90-10. The Illinois Power Agency Act is amended by changing Sections 1-20, 1-56, and 1-75 and by adding 1-76 as follows:

(20 ILCS 3855/1-20)

Sec. 1-20. General powers of the Agency.

(a) The Agency is authorized to do each of the following:

(1) Develop electricity procurement plans to ensure adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time, taking into account any benefits of price stability, for electric utilities that on December 31, 2005 provided electric service to at least 100,000 customers in Illinois and for small multi-jurisdictional electric utilities that (A) on December 31, 2005 served less than 100,000 customers in Illinois and (B) request a procurement plan for their Illinois jurisdictional load. Except as provided in paragraph (1.5) of this subsection (a), the electricity procurement plans shall be updated on an annual basis and shall include electricity generated from renewable resources sufficient to achieve the standards specified in this Act. Beginning with the delivery year commencing June 1, 2017, develop procurement plans to include zero emission credits generated from zero emission facilities sufficient to achieve the standards specified in this Act. If the Commission approves an electric utility's election pursuant to paragraph (6) of subsection (b) of Section 16-111.5 of the Public Utilities Act, then, beginning with the procurement for the first delivery year approved in such election, the Agency shall for each year develop a plan, as part of its procurement plan, to conduct a procurement of capacity from qualified resources needed to meet capacity requirements of all of the retail customers of the electric utility, subject to the open access tariff and manuals of PJM Interconnection, LLC, or its successor. The Capacity Procurement Plan shall be updated annually and shall include electricity generated from renewable resources sufficient to achieve the renewable portfolio standards as specified in this Act.

(1.5) Develop a long-term renewable resources procurement plan in accordance with subsection (c) of Section 1-75 of this Act for renewable energy credits in amounts sufficient to achieve the standards specified in this Act for delivery years commencing June 1, 2017 and for the programs and renewable energy credits specified in Section 1-56 of this Act. Electricity procurement plans for delivery years commencing after May 31, 2017, shall not include procurement of renewable energy resources.

(2) Conduct competitive procurement processes to procure the supply resources identified in the electricity procurement plan, pursuant to Section 16-111.5 of the Public Utilities Act, and, for the delivery year commencing June 1, 2017, conduct procurement processes to procure zero emission credits from zero emission facilities, under subsection (d-5) of Section 1-75 of this Act.

(2.5) Beginning with the procurement for the 2017 delivery year, conduct competitive procurement processes and implement programs to procure renewable energy credits identified in the long-term renewable resources procurement plan developed and approved under subsection (c) of Section 1-75 of this Act and Section 16-111.5 of the Public Utilities Act.

(3) Develop electric generation and cogeneration co-generation facilities that use indigenous coal or renewable resources, or both, financed with bonds issued by the Illinois Finance Authority.

(4) Supply electricity from the Agency's facilities at cost to one or more of the following: municipal electric systems, governmental aggregators, or rural electric cooperatives in Illinois.

(b) Except as otherwise limited by this Act, the Agency has all of the powers necessary or convenient to carry out the purposes and provisions of this Act, including without limitation, each of the following:

(1) To have a corporate seal, and to alter that seal at pleasure, and to use it by causing it or a facsimile to be affixed or impressed or reproduced in any other manner.

(2) To use the services of the Illinois Finance Authority necessary to carry out the Agency's purposes.

(3) To negotiate and enter into loan agreements and other agreements with the Illinois Finance Authority.

(4) To obtain and employ personnel and hire consultants that are necessary to fulfill the Agency's purposes, and to make expenditures for that purpose within the appropriations for that purpose.

(5) To purchase, receive, take by grant, gift, devise, bequest, or otherwise, lease, or otherwise acquire, own, hold, improve, employ, use, and otherwise deal in and with, real or personal property whether tangible or intangible, or any interest therein, within the State.

(6) To acquire real or personal property, whether tangible or intangible, including without limitation property rights, interests in property, franchises, obligations, contracts, and debt and equity securities, and to do so by the exercise of the power of eminent domain in accordance with Section 1-21; except that any real property acquired by the exercise of the power of eminent domain must be located within the State.

(7) To sell, convey, lease, exchange, transfer, abandon, or otherwise dispose of, or mortgage, pledge, or create a security interest in, any of its assets, properties, or any interest therein, wherever situated.

(8) To purchase, take, receive, subscribe for, or otherwise acquire, hold, make a tender offer for, vote, employ, sell, lend, lease, exchange, transfer, or otherwise dispose of, mortgage, pledge, or grant a security interest in, use, and otherwise deal in and with, bonds and other obligations, shares, or other securities (or interests therein) issued by others, whether engaged in a similar or different business or activity.

(9) To make and execute agreements, contracts, and other instruments necessary or convenient in the exercise of the powers and functions of the Agency under this Act, including contracts with any person, including personal service contracts, or with any local government, State agency, or other entity; and all State agencies and all local governments are authorized to enter into and do all things necessary to perform any such agreement, contract, or other instrument with the Agency. No such agreement, contract, or other instrument shall exceed 40 years.

(10) To lend money, invest and reinvest its funds in accordance with the Public Funds Investment Act, and take and hold real and personal property as security for the payment of funds loaned or invested.

(11) To borrow money at such rate or rates of interest as the Agency may determine, issue its notes, bonds, or other obligations to evidence that indebtedness, and secure any of its obligations by mortgage or pledge of its real or personal property, machinery, equipment, structures, fixtures, inventories, revenues, grants, and other funds as provided or any interest therein, wherever situated.

(12) To enter into agreements with the Illinois Finance Authority to issue bonds whether or not the income therefrom is exempt from federal taxation.

(13) To procure insurance against any loss in connection with its properties or operations in such amount or amounts and from such insurers, including the federal government, as it may deem necessary or desirable, and to pay any premiums therefor.

(14) To negotiate and enter into agreements with trustees or receivers appointed by United States bankruptcy courts or federal district courts or in other proceedings involving adjustment of debts and authorize proceedings involving adjustment of debts and authorize legal counsel for the Agency to appear in any such proceedings.

(15) To file a petition under Chapter 9 of Title 11 of the United States Bankruptcy Code or take other similar action for the adjustment of its debts.

(16) To enter into management agreements for the operation of any of the property or facilities owned by the Agency.

(17) To enter into an agreement to transfer and to transfer any land, facilities, fixtures, or equipment of the Agency to one or more municipal electric systems, governmental aggregators, or rural electric agencies or cooperatives, for such consideration and upon such terms as the Agency may determine to be in the best interest of the citizens of Illinois.

(18) To enter upon any lands and within any building whenever in its judgment it may be necessary for the purpose of making surveys and examinations to accomplish any purpose authorized by this Act.

(19) To maintain an office or offices at such place or places in the State as it may determine.

(20) To request information, and to make any inquiry, investigation, survey, or study that the Agency may deem necessary to enable it effectively to carry out the provisions of this Act.

(21) To accept and expend appropriations.

(22) To engage in any activity or operation that is incidental to and in furtherance of efficient operation to accomplish the Agency's purposes, including hiring employees that the Director deems essential for the operations of the Agency.

(23) To adopt, revise, amend, and repeal rules with respect to its operations, properties, and facilities as may be necessary or convenient to carry out the purposes of this Act, subject to the provisions of the Illinois Administrative Procedure Act and Sections 1-22 and 1-35 of this Act.

(24) To establish and collect charges and fees as described in this Act.

(25) To conduct competitive gasification feedstock procurement processes to procure the feedstocks for the clean coal SNG brownfield facility in accordance with the requirements of Section 1-78 of this Act.

(26) To review, revise, and approve sourcing agreements and mediate and resolve disputes between gas utilities and the clean coal SNG brownfield facility pursuant to subsection (h-1) of Section 9-220 of the Public Utilities Act.

(27) To request, review and accept proposals, execute contracts, purchase renewable energy credits and otherwise dedicate funds from the Illinois Power Agency Renewable Energy Resources Fund to create and carry out the objectives of the Illinois Solar for All program in accordance with Section 1-56 of this Act.

(Source: P.A. 99-906, eff. 6-1-17.)

(20 ILCS 3855/1-56)

Sec. 1-56. Illinois Power Agency Renewable Energy Resources Fund; Illinois Solar for All Program.

(a) The Illinois Power Agency Renewable Energy Resources Fund is created as a special fund in the State treasury.

(b) The Illinois Power Agency Renewable Energy Resources Fund shall be administered by the Agency as described in this subsection (b), provided that the changes to this subsection (b) made by this amendatory Act of the 99th General Assembly shall not interfere with existing contracts under this Section.

(1) The Illinois Power Agency Renewable Energy Resources Fund shall be used to purchase renewable energy credits according to any approved procurement plan developed by the Agency prior to June 1, 2017.

(2) The Illinois Power Agency Renewable Energy Resources Fund shall also be used to create the Illinois Solar for All Program, which shall include incentives for low-income distributed generation and community solar projects, and other associated approved expenditures. The objectives of the Illinois Solar for All Program are to bring photovoltaics to low-income communities in this State in a manner that maximizes the development of new photovoltaic generating facilities, to create a long-term, low-income solar marketplace throughout this State, to integrate, through interaction with stakeholders, with existing energy efficiency initiatives, and to minimize administrative costs. The Agency shall include a description of its proposed approach to the design, administration, implementation and evaluation of the Illinois Solar for All Program, as part of the long-term renewable resources procurement plan authorized by subsection (c) of Section 1-75 of this Act, and the program shall be designed to grow the low-income solar market. The Agency or utility, as applicable, shall purchase renewable energy credits from the (i) photovoltaic distributed renewable energy generation projects and (ii) community solar projects that are procured under procurement processes authorized by the long-term renewable resources procurement plans approved by the Commission.

The Illinois Solar for All Program shall include the program offerings described in subparagraphs (A) through (D) of this paragraph (2), which the Agency shall implement through contracts with third-party providers and, subject to appropriation, pay the approximate amounts identified using monies available in the Illinois Power Agency Renewable Energy Resources Fund. Each contract that provides for the installation of solar facilities shall provide that the solar facilities will produce energy and economic benefits, at a level determined by the Agency to be reasonable, for the participating low income customers. The monies available in the Illinois Power Agency Renewable Energy Resources Fund and not otherwise committed to contracts executed under subsection (i) of this Section shall be allocated among the programs described in this paragraph (2), as follows: 22.5% of these funds shall be allocated to programs described in subparagraph (A) of this paragraph (2), 37.5% of these funds shall be allocated to programs described in subparagraph (B) of this paragraph (2), 15% of these funds shall be allocated to programs described in subparagraph (C) of this paragraph (2), and 25% of these funds, but in no event more than $50,000,000, shall be allocated to programs described in subparagraph (D) of this paragraph (2). The allocation of funds among subparagraphs (A), (B), or (C) of this paragraph (2) may be changed if the Agency or administrator, through delegated authority, determines incentives in subparagraphs (A), (B), or (C) of this paragraph (2) have not been adequately subscribed to fully utilize the Illinois Power Agency Renewable Energy Resources Fund. The determination shall include input through a stakeholder process. The Agency shall annually fund the program offerings described in subparagraphs (A) through (D) of this paragraph (2) in an amount of not less than $75,000,000 per year. If the moneys available in the Illinois Power Agency Renewable Energy Resources Fund are insufficient to meet this minimum funding requirement, the Agency shall also use be implemented through contracts funded from such additional amounts as are allocated to one or more of the programs in the long-term renewable resources procurement plans as specified in subsection (c) of Section 1-75 of this Act and subparagraph (O) of paragraph (1) of such subsection (c). Beginning after the effective date of this amendatory Act of the 102nd General Assembly, the Agency's updates to its long-term renewable resources procurement plan under Section 16-111.5 of the Public Utilities Act shall set forth the Agency's detailed plan to ensure that at least 80% of the funding available to the Illinois Solar for All Program in a given delivery year will be used and spent on the programs set forth in this subsection (b).

Contracts that will be paid with funds in the Illinois Power Agency Renewable Energy Resources Fund shall be executed by the Agency. Contracts that will be paid with funds collected by an electric utility shall be executed by the electric utility.

Contracts under the Illinois Solar for All Program shall include an approach, as set forth in the long-term renewable resources procurement plans, to ensure the wholesale market value of the energy is credited to participating low-income customers or organizations and to ensure tangible economic benefits flow directly to program participants, except in the case of low-income multi-family housing where the low-income customer does not directly pay for energy. Priority shall be given to projects that demonstrate meaningful involvement of low-income community members in designing the initial proposals. Acceptable proposals to implement projects must demonstrate the applicant's ability to conduct initial community outreach, education, and recruitment of low-income participants in the community. Projects must include job training opportunities if available, and shall endeavor to coordinate with the job training programs described in paragraph (1) of subsection (a) of Section 16-108.12 of the Public Utilities Act.

(A) Low-income distributed generation incentive. This program will provide incentives to low-income customers, either directly or through solar providers, to increase the participation of low-income households in photovoltaic on-site distributed generation. Companies participating in this program that install solar panels shall commit to hiring job trainees for a portion of their low-income installations, and an administrator shall facilitate partnering the companies that install solar panels with entities that provide solar panel installation job training. It is a goal of this program that a minimum of 25% of the incentives for this program be allocated to projects located within environmental justice communities. Contracts entered into under this paragraph may be entered into with an entity that will develop and administer the program and shall also include contracts for renewable energy credits from the photovoltaic distributed generation that is the subject of the program, as set forth in the long-term renewable resources procurement plan.

(B) Low-Income Community Solar Project Initiative. Incentives shall be offered to low-income customers, either directly or through developers, to increase the participation of low-income subscribers of community solar projects. The developer of each project shall identify its partnership with community stakeholders regarding the location, development, and participation in the project, provided that nothing shall preclude a project from including an anchor tenant that does not qualify as low-income. Incentives should also be offered to community solar projects that are 100% low-income subscriber owned, which includes low-income households, not-for-profit organizations, and affordable housing owners. It is a goal of this program that a minimum of 25% of the incentives for this program be allocated to community photovoltaic projects in environmental justice communities. Contracts entered into under this paragraph may be entered into with developers and shall also include contracts for renewable energy credits related to the program.

(C) Incentives for non-profits and public facilities. Under this program funds shall be used to support on-site photovoltaic distributed renewable energy generation devices to serve the load associated with not-for-profit customers and to support photovoltaic distributed renewable energy generation that uses photovoltaic technology to serve the load associated with public sector customers taking service at public buildings. It is a goal of this program that at least 25% of the incentives for this program be allocated to projects located in environmental justice communities. Contracts entered into under this paragraph may be entered into with an entity that will develop and administer the program or with developers and shall also include contracts for renewable energy credits related to the program.

(D) Low-Income Community Solar Pilot Projects. Under this program, persons, including, but not limited to, electric utilities, shall propose pilot community solar projects. Community solar projects proposed under this subparagraph (D) may exceed 2,000 kilowatts in nameplate capacity, but the amount paid per project under this program may not exceed $20,000,000. Pilot projects must result in economic benefits for the members of the community in which the project will be located. The proposed pilot project must include a partnership with at least one community-based organization. Approved pilot projects shall be competitively bid by the Agency, subject to fair and equitable guidelines developed by the Agency. Funding available under this subparagraph (D) may not be distributed solely to a utility, and at least some funds under this subparagraph (D) must include a project partnership that includes community ownership by the project subscribers. Contracts entered into under this paragraph may be entered into with an entity that will develop and administer the program or with developers and shall also include contracts for renewable energy credits related to the program. A project proposed by a utility that is implemented under this subparagraph (D) shall not be included in the utility's rate base ratebase.

The requirement that a qualified person, as defined in paragraph (1) of subsection (i) of this Section, install photovoltaic devices does not apply to the Illinois Solar for All Program described in this subsection (b).

(3) Costs associated with the Illinois Solar for All Program and its components described in paragraph (2) of this subsection (b), including, but not limited to, costs associated with procuring experts, consultants, and the program administrator referenced in this subsection (b) and related incremental costs, and costs related to the evaluation of the Illinois Solar for All Program, may be paid for using monies in the Illinois Power Agency Renewable Energy Resources Fund, but the Agency or program administrator shall strive to minimize costs in the implementation of the program. The Agency shall purchase renewable energy credits from generation that is the subject of a contract under subparagraphs (A) through (D) of this paragraph (2) of this subsection (b), and may pay for such renewable energy credits through an upfront payment per installed kilowatt of nameplate capacity paid once the device is interconnected at the distribution system level of the utility and is energized. The payment shall be in exchange for an assignment of all renewable energy credits generated by the system during the first 15 years of operation and shall be structured to overcome barriers to participation in the solar market by the low-income community. The incentives provided for in this Section may be implemented through the pricing of renewable energy credits where the prices paid for the credits are higher than the prices from programs offered under subsection (c) of Section 1-75 of this Act to account for the incentives. The Agency shall ensure collaboration with community agencies, and allocate up to 5% of the funds available under the Illinois Solar for All Program to community-based groups to assist in grassroots education efforts related to the Illinois Solar for All Program. The Agency shall retire any renewable energy credits purchased from this program and the credits shall count toward towards the obligation under subsection (c) of Section 1-75 of this Act for the electric utility to which the project is interconnected.

(4) The Agency shall, consistent with the requirements of this subsection (b), propose the Illinois Solar for All Program terms, conditions, and requirements, including the prices to be paid for renewable energy credits, and which prices may be determined through a formula, through the development, review, and approval of the Agency's long-term renewable resources procurement plan described in subsection (c) of Section 1-75 of this Act and Section 16-111.5 of the Public Utilities Act. In the course of the Commission proceeding initiated to review and approve the plan, including the Illinois Solar for All Program proposed by the Agency, a party may propose an additional low-income solar or solar incentive program, or modifications to the programs proposed by the Agency, and the Commission may approve an additional program, or modifications to the Agency's proposed program, if the additional or modified program more effectively maximizes the benefits to low-income customers after taking into account all relevant factors, including, but not limited to, the extent to which a competitive market for low-income solar has developed. Following the Commission's approval of the Illinois Solar for All Program, the Agency or a party may propose adjustments to the program terms, conditions, and requirements, including the price offered to new systems, to ensure the long-term viability and success of the program. The Commission shall review and approve any modifications to the program through the plan revision process described in Section 16-111.5 of the Public Utilities Act.

(5) The Agency shall issue a request for qualifications for a third-party program administrator or administrators to administer all or a portion of the Illinois Solar for All Program. The third-party program administrator shall be chosen through a competitive bid process based on selection criteria and requirements developed by the Agency, including, but not limited to, experience in administering low-income energy programs and overseeing statewide clean energy or energy efficiency services. If the Agency retains a program administrator or administrators to implement all or a portion of the Illinois Solar for All Program, each administrator shall periodically submit reports to the Agency and Commission for each program that it administers, at appropriate intervals to be identified by the Agency in its long-term renewable resources procurement plan, provided that the reporting interval is at least quarterly.

(6) The long-term renewable resources procurement plan shall also provide for an independent evaluation of the Illinois Solar for All Program. At least every 2 years, the Agency shall select an independent evaluator to review and report on the Illinois Solar for All Program and the performance of the third-party program administrator of the Illinois Solar for All Program. The evaluation shall be based on objective criteria developed through a public stakeholder process. The process shall include feedback and participation from Illinois Solar for All Program stakeholders, including participants and organizations in environmental justice and historically underserved communities. The report shall include a summary of the evaluation of the Illinois Solar for All Program based on the stakeholder developed objective criteria. The report shall include the number of projects installed; the total installed capacity in kilowatts; the average cost per kilowatt of installed capacity to the extent reasonably obtainable by the Agency; the number of jobs or job opportunities created; economic, social, and environmental benefits created; and the total administrative costs expended by the Agency and program administrator to implement and evaluate the program. The report shall be delivered to the Commission and posted on the Agency's website, and shall be used, as needed, to revise the Illinois Solar for All Program. The Commission shall also consider the results of the evaluation as part of its review of the long-term renewable resources procurement plan under subsection (c) of Section 1-75 of this Act.

(7) If additional funding for the programs described in this subsection (b) is available under subsection (k) of Section 16-108 of the Public Utilities Act, then the Agency shall submit a procurement plan to the Commission no later than September 1, 2018, that proposes how the Agency will procure programs on behalf of the applicable utility. After notice and hearing, the Commission shall approve, or approve with modification, the plan no later than November 1, 2018.

As used in this subsection (b), "low-income households" means persons and families whose income does not exceed 80% of area median income, adjusted for family size and revised every 5 years.

For the purposes of this subsection (b), the Agency shall define "environmental justice community" as part of long-term renewable resources procurement plan development, to ensure, to the extent practicable, compatibility with other agencies' definitions and may, for guidance, look to the definitions used by federal, state, or local governments.

(b-5) After the receipt of all payments required by Section 16-115D of the Public Utilities Act, no additional funds shall be deposited into the Illinois Power Agency Renewable Energy Resources Fund unless directed by order of the Commission.

(b-10) After the receipt of all payments required by Section 16-115D of the Public Utilities Act and payment in full of all contracts executed by the Agency under subsections (b) and (i) of this Section, if the balance of the Illinois Power Agency Renewable Energy Resources Fund is under $5,000, then the Fund shall be inoperative and any remaining funds and any funds submitted to the Fund after that date, shall be transferred to the Supplemental Low-Income Energy Assistance Fund for use in the Low-Income Home Energy Assistance Program, as authorized by the Energy Assistance Act.

(c) (Blank).

(d) (Blank).

(e) All renewable energy credits procured using monies from the Illinois Power Agency Renewable Energy Resources Fund shall be permanently retired.

(f) The selection of one or more third-party program managers or administrators, the selection of the independent evaluator, and the procurement processes described in this Section are exempt from the requirements of the Illinois Procurement Code, under Section 20-10 of that Code.

(g) All disbursements from the Illinois Power Agency Renewable Energy Resources Fund shall be made only upon warrants of the Comptroller drawn upon the Treasurer as custodian of the Fund upon vouchers signed by the Director or by the person or persons designated by the Director for that purpose. The Comptroller is authorized to draw the warrant upon vouchers so signed. The Treasurer shall accept all warrants so signed and shall be released from liability for all payments made on those warrants.

(h) The Illinois Power Agency Renewable Energy Resources Fund shall not be subject to sweeps, administrative charges, or chargebacks, including, but not limited to, those authorized under Section 8h of the State Finance Act, that would in any way result in the transfer of any funds from this Fund to any other fund of this State or in having any such funds utilized for any purpose other than the express purposes set forth in this Section.

(h-5) The Agency may assess fees to each bidder to recover the costs incurred in connection with a procurement process held under this Section. Fees collected from bidders shall be deposited into the Renewable Energy Resources Fund.

(i) Supplemental procurement process.

(1) Within 90 days after the effective date of this amendatory Act of the 98th General Assembly, the Agency shall develop a one-time supplemental procurement plan limited to the procurement of renewable energy credits, if available, from new or existing photovoltaics, including, but not limited to, distributed photovoltaic generation. Nothing in this subsection (i) requires procurement of wind generation through the supplemental procurement.

Renewable energy credits procured from new photovoltaics, including, but not limited to, distributed photovoltaic generation, under this subsection (i) must be procured from devices installed by a qualified person. In its supplemental procurement plan, the Agency shall establish contractually enforceable mechanisms for ensuring that the installation of new photovoltaics is performed by a qualified person.

For the purposes of this paragraph (1), "qualified person" means a person who performs installations of photovoltaics, including, but not limited to, distributed photovoltaic generation, and who: (A) has completed an apprenticeship as a journeyman electrician from a United States Department of Labor registered electrical apprenticeship and training program and received a certification of satisfactory completion; or (B) does not currently meet the criteria under clause (A) of this paragraph (1), but is enrolled in a United States Department of Labor registered electrical apprenticeship program, provided that the person is directly supervised by a person who meets the criteria under clause (A) of this paragraph (1); or (C) has obtained one of the following credentials in addition to attesting to satisfactory completion of at least 5 years or 8,000 hours of documented hands-on electrical experience: (i) a North American Board of Certified Energy Practitioners (NABCEP) Installer Certificate for Solar PV; (ii) an Underwriters Laboratories (UL) PV Systems Installer Certificate; (iii) an Electronics Technicians Association, International (ETAI) Level 3 PV Installer Certificate; or (iv) an Associate in Applied Science degree from an Illinois Community College Board approved community college program in renewable energy or a distributed generation technology.

For the purposes of this paragraph (1), "directly supervised" means that there is a qualified person who meets the qualifications under clause (A) of this paragraph (1) and who is available for supervision and consultation regarding the work performed by persons under clause (B) of this paragraph (1), including a final inspection of the installation work that has been directly supervised to ensure safety and conformity with applicable codes.

For the purposes of this paragraph (1), "install" means the major activities and actions required to connect, in accordance with applicable building and electrical codes, the conductors, connectors, and all associated fittings, devices, power outlets, or apparatuses mounted at the premises that are directly involved in delivering energy to the premises' electrical wiring from the photovoltaics, including, but not limited to, to distributed photovoltaic generation.

The renewable energy credits procured pursuant to the supplemental procurement plan shall be procured using up to $30,000,000 from the Illinois Power Agency Renewable Energy Resources Fund. The Agency shall not plan to use funds from the Illinois Power Agency Renewable Energy Resources Fund in excess of the monies on deposit in such fund or projected to be deposited into such fund. The supplemental procurement plan shall ensure adequate, reliable, affordable, efficient, and environmentally sustainable renewable energy resources (including credits) at the lowest total cost over time, taking into account any benefits of price stability.

To the extent available, 50% of the renewable energy credits procured from distributed renewable energy generation shall come from devices of less than 25 kilowatts in nameplate capacity. Procurement of renewable energy credits from distributed renewable energy generation devices shall be done through multi-year contracts of no less than 5 years. The Agency shall create credit requirements for counterparties. In order to minimize the administrative burden on contracting entities, the Agency shall solicit the use of third parties to aggregate distributed renewable energy. These third parties shall enter into and administer contracts with individual distributed renewable energy generation device owners. An individual distributed renewable energy generation device owner shall have the ability to measure the output of his or her distributed renewable energy generation device.

In developing the supplemental procurement plan, the Agency shall hold at least one workshop open to the public within 90 days after the effective date of this amendatory Act of the 98th General Assembly and shall consider any comments made by stakeholders or the public. Upon development of the supplemental procurement plan within this 90-day period, copies of the supplemental procurement plan shall be posted and made publicly available on the Agency's and Commission's websites. All interested parties shall have 14 days following the date of posting to provide comment to the Agency on the supplemental procurement plan. All comments submitted to the Agency shall be specific, supported by data or other detailed analyses, and, if objecting to all or a portion of the supplemental procurement plan, accompanied by specific alternative wording or proposals. All comments shall be posted on the Agency's and Commission's websites. Within 14 days following the end of the 14-day review period, the Agency shall revise the supplemental procurement plan as necessary based on the comments received and file its revised supplemental procurement plan with the Commission for approval.

(2) Within 5 days after the filing of the supplemental procurement plan at the Commission, any person objecting to the supplemental procurement plan shall file an objection with the Commission. Within 10 days after the filing, the Commission shall determine whether a hearing is necessary. The Commission shall enter its order confirming or modifying the supplemental procurement plan within 90 days after the filing of the supplemental procurement plan by the Agency.

(3) The Commission shall approve the supplemental procurement plan of renewable energy credits to be procured from new or existing photovoltaics, including, but not limited to, distributed photovoltaic generation, if the Commission determines that it will ensure adequate, reliable, affordable, efficient, and environmentally sustainable electric service in the form of renewable energy credits at the lowest total cost over time, taking into account any benefits of price stability.

(4) The supplemental procurement process under this subsection (i) shall include each of the following components:

(A) Procurement administrator. The Agency may retain a procurement administrator in the manner set forth in item (2) of subsection (a) of Section 1-75 of this Act to conduct the supplemental procurement or may elect to use the same procurement administrator administering the Agency's annual procurement under Section 1-75.

(B) Procurement monitor. The procurement monitor retained by the Commission pursuant to Section 16-111.5 of the Public Utilities Act shall:

(i) monitor interactions among the procurement administrator and bidders and suppliers;

(ii) monitor and report to the Commission on the progress of the supplemental procurement process;

(iii) provide an independent confidential report to the Commission regarding the results of the procurement events;

(iv) assess compliance with the procurement plan approved by the Commission for the supplemental procurement process;

(v) preserve the confidentiality of supplier and bidding information in a manner consistent with all applicable laws, rules, regulations, and tariffs;

(vi) provide expert advice to the Commission and consult with the procurement administrator regarding issues related to procurement process design, rules, protocols, and policy-related matters;

(vii) consult with the procurement administrator regarding the development and use of benchmark criteria, standard form contracts, credit policies, and bid documents; and

(viii) perform, with respect to the supplemental procurement process, any other procurement monitor duties specifically delineated within subsection (i) of this Section.

(C) Solicitation, pre-qualification, and registration of bidders. The procurement administrator shall disseminate information to potential bidders to promote a procurement event, notify potential bidders that the procurement administrator may enter into a post-bid price negotiation with bidders that meet the applicable benchmarks, provide supply requirements, and otherwise explain the competitive procurement process. In addition to such other publication as the procurement administrator determines is appropriate, this information shall be posted on the Agency's and the Commission's websites. The procurement administrator shall also administer the prequalification process, including evaluation of credit worthiness, compliance with procurement rules, and agreement to the standard form contract developed pursuant to item (D) of this paragraph (4). The procurement administrator shall then identify and register bidders to participate in the procurement event.

(D) Standard contract forms and credit terms and instruments. The procurement administrator, in consultation with the Agency, the Commission, and other interested parties and subject to Commission oversight, shall develop and provide standard contract forms for the supplier contracts that meet generally accepted industry practices as well as include any applicable State of Illinois terms and conditions that are required for contracts entered into by an agency of the State of Illinois. Standard credit terms and instruments that meet generally accepted industry practices shall be similarly developed. Contracts for new photovoltaics shall include a provision attesting that the supplier will use a qualified person for the installation of the device pursuant to paragraph (1) of subsection (i) of this Section. The procurement administrator shall make available to the Commission all written comments it receives on the contract forms, credit terms, or instruments. If the procurement administrator cannot reach agreement with the parties as to the contract terms and conditions, the procurement administrator must notify the Commission of any disputed terms and the Commission shall resolve the dispute. The terms of the contracts shall not be subject to negotiation by winning bidders, and the bidders must agree to the terms of the contract in advance so that winning bids are selected solely on the basis of price.

(E) Requests for proposals; competitive procurement process. The procurement administrator shall design and issue requests for proposals to supply renewable energy credits in accordance with the supplemental procurement plan, as approved by the Commission. The requests for proposals shall set forth a procedure for sealed, binding commitment bidding with pay-as-bid settlement, and provision for selection of bids on the basis of price, provided, however, that no bid shall be accepted if it exceeds the benchmark developed pursuant to item (F) of this paragraph (4).

(F) Benchmarks. Benchmarks for each product to be procured shall be developed by the procurement administrator in consultation with Commission staff, the Agency, and the procurement monitor for use in this supplemental procurement.

(G) A plan for implementing contingencies in the event of supplier default, Commission rejection of results, or any other cause.

(5) Within 2 business days after opening the sealed bids, the procurement administrator shall submit a confidential report to the Commission. The report shall contain the results of the bidding for each of the products along with the procurement administrator's recommendation for the acceptance and rejection of bids based on the price benchmark criteria and other factors observed in the process. The procurement monitor also shall submit a confidential report to the Commission within 2 business days after opening the sealed bids. The report shall contain the procurement monitor's assessment of bidder behavior in the process as well as an assessment of the procurement administrator's compliance with the procurement process and rules. The Commission shall review the confidential reports submitted by the procurement administrator and procurement monitor and shall accept or reject the recommendations of the procurement administrator within 2 business days after receipt of the reports.

(6) Within 3 business days after the Commission decision approving the results of a procurement event, the Agency shall enter into binding contractual arrangements with the winning suppliers using the standard form contracts.

(7) The names of the successful bidders and the average of the winning bid prices for each contract type and for each contract term shall be made available to the public within 2 days after the supplemental procurement event. The Commission, the procurement monitor, the procurement administrator, the Agency, and all participants in the procurement process shall maintain the confidentiality of all other supplier and bidding information in a manner consistent with all applicable laws, rules, regulations, and tariffs. Confidential information, including the confidential reports submitted by the procurement administrator and procurement monitor pursuant to this Section, shall not be made publicly available and shall not be discoverable by any party in any proceeding, absent a compelling demonstration of need, nor shall those reports be admissible in any proceeding other than one for law enforcement purposes.

(8) The supplemental procurement provided in this subsection (i) shall not be subject to the requirements and limitations of subsections (c) and (d) of this Section.

(9) Expenses incurred in connection with the procurement process held pursuant to this Section, including, but not limited to, the cost of developing the supplemental procurement plan, the procurement administrator, procurement monitor, and the cost of the retirement of renewable energy credits purchased pursuant to the supplemental procurement shall be paid for from the Illinois Power Agency Renewable Energy Resources Fund. The Agency shall enter into an interagency agreement with the Commission to reimburse the Commission for its costs associated with the procurement monitor for the supplemental procurement process.

(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)

(20 ILCS 3855/1-75)

Sec. 1-75. Planning and Procurement Bureau. The Planning and Procurement Bureau has the following duties and responsibilities:

(a) The Planning and Procurement Bureau shall each year, beginning in 2008, develop procurement plans and conduct competitive procurement processes in accordance with the requirements of Section 16-111.5 of the Public Utilities Act for the eligible retail customers of electric utilities that on December 31, 2005 provided electric service to at least 100,000 customers in Illinois. Beginning with the delivery year commencing on June 1, 2017, the Planning and Procurement Bureau shall develop plans and processes for the procurement of zero emission credits from zero emission facilities in accordance with the requirements of subsection (d-5) of this Section. The Planning and Procurement Bureau shall also develop procurement plans and conduct competitive procurement processes in accordance with the requirements of Section 16-111.5 of the Public Utilities Act for the eligible retail customers of small multi-jurisdictional electric utilities that (i) on December 31, 2005 served less than 100,000 customers in Illinois and (ii) request a procurement plan for their Illinois jurisdictional load. This Section shall not apply to a small multi-jurisdictional utility until such time as a small multi-jurisdictional utility requests the Agency to prepare a procurement plan for their Illinois jurisdictional load. For the purposes of this Section, the term "eligible retail customers" has the same definition as found in Section 16-111.5(a) of the Public Utilities Act.

Beginning with the plan or plans to be implemented in the 2017 delivery year, the Agency shall no longer include the procurement of renewable energy resources in the annual procurement plans required by this subsection (a), except as provided in subsection (q) of Section 16-111.5 of the Public Utilities Act, and shall instead develop a long-term renewable resources procurement plan in accordance with subsection (c) of this Section and Section 16-111.5 of the Public Utilities Act.

(1) The Agency shall each year, beginning in 2008, as needed, issue a request for qualifications for experts or expert consulting firms to develop the procurement plans in accordance with Section 16-111.5 of the Public Utilities Act. In order to qualify an expert or expert consulting firm must have:

(A) direct previous experience assembling large-scale power supply plans or portfolios for end-use customers;

(B) an advanced degree in economics, mathematics, engineering, risk management, or a related area of study;

(C) 10 years of experience in the electricity sector, including managing supply risk;

(D) expertise in wholesale electricity market rules, including those established by the Federal Energy Regulatory Commission and regional transmission organizations;

(E) expertise in credit protocols and familiarity with contract protocols;

(F) adequate resources to perform and fulfill the required functions and responsibilities; and

(G) the absence of a conflict of interest and inappropriate bias for or against potential bidders or the affected electric utilities.

(2) The Agency shall each year, as needed, issue a request for qualifications for a procurement administrator to conduct the competitive procurement processes in accordance with Section 16-111.5 of the Public Utilities Act. In order to qualify an expert or expert consulting firm must have:

(A) direct previous experience administering a large-scale competitive procurement process;

(B) an advanced degree in economics, mathematics, engineering, or a related area of study;

(C) 10 years of experience in the electricity sector, including risk management experience;

(D) expertise in wholesale electricity market rules, including those established by the Federal Energy Regulatory Commission and regional transmission organizations;

(E) expertise in credit and contract protocols;

(F) adequate resources to perform and fulfill the required functions and responsibilities; and

(G) the absence of a conflict of interest and inappropriate bias for or against potential bidders or the affected electric utilities.

(3) The Agency shall provide affected utilities and other interested parties with the lists of qualified experts or expert consulting firms identified through the request for qualifications processes that are under consideration to develop the procurement plans and to serve as the procurement administrator. The Agency shall also provide each qualified expert's or expert consulting firm's response to the request for qualifications. All information provided under this subparagraph shall also be provided to the Commission. The Agency may provide by rule for fees associated with supplying the information to utilities and other interested parties. These parties shall, within 5 business days, notify the Agency in writing if they object to any experts or expert consulting firms on the lists. Objections shall be based on:

(A) failure to satisfy qualification criteria;

(B) identification of a conflict of interest; or

(C) evidence of inappropriate bias for or against potential bidders or the affected utilities.

The Agency shall remove experts or expert consulting firms from the lists within 10 days if there is a reasonable basis for an objection and provide the updated lists to the affected utilities and other interested parties. If the Agency fails to remove an expert or expert consulting firm from a list, an objecting party may seek review by the Commission within 5 days thereafter by filing a petition, and the Commission shall render a ruling on the petition within 10 days. There is no right of appeal of the Commission's ruling.

(4) The Agency shall issue requests for proposals to the qualified experts or expert consulting firms to develop a procurement plan for the affected utilities and to serve as procurement administrator.

(5) The Agency shall select an expert or expert consulting firm to develop procurement plans based on the proposals submitted and shall award contracts of up to 5 years to those selected.

(6) The Agency shall select an expert or expert consulting firm, with approval of the Commission, to serve as procurement administrator based on the proposals submitted. If the Commission rejects, within 5 days, the Agency's selection, the Agency shall submit another recommendation within 3 days based on the proposals submitted. The Agency shall award a 5-year contract to the expert or expert consulting firm so selected with Commission approval.

(b) The experts or expert consulting firms retained by the Agency shall, as appropriate, prepare procurement plans, and conduct a competitive procurement process as prescribed in Section 16-111.5 of the Public Utilities Act, to ensure adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost over time, taking into account any benefits of price stability, for eligible retail customers of electric utilities that on December 31, 2005 provided electric service to at least 100,000 customers in the State of Illinois, and for eligible Illinois retail customers of small multi-jurisdictional electric utilities that (i) on December 31, 2005 served less than 100,000 customers in Illinois and (ii) request a procurement plan for their Illinois jurisdictional load.

(c) Renewable portfolio standard.

(1)(A) The Agency shall develop a long-term renewable resources procurement plan that shall include procurement programs and competitive procurement events necessary to meet the goals set forth in this subsection (c). The initial long-term renewable resources procurement plan shall be released for comment no later than 160 days after June 1, 2017 (the effective date of Public Act 99-906). The Agency shall review, and may revise on an expedited basis, the long-term renewable resources procurement plan at least every 2 years, which shall be conducted in conjunction with the procurement plan under Section 16-111.5 of the Public Utilities Act to the extent practicable to minimize administrative expense. The long-term renewable resources procurement plans shall be subject to review and approval by the Commission under Section 16-111.5 of the Public Utilities Act.

(B) Subject to subparagraph (F) of this paragraph (1), the long-term renewable resources procurement plan shall include the goals for procurement of renewable energy credits to meet at least the following overall percentages: 13% by the 2017 delivery year; increasing by at least 1.5% each delivery year thereafter to at least 25% by the 2025 delivery year; and continuing at no less than 25% for each delivery year thereafter. In the event of a conflict between these goals and the new wind and new photovoltaic procurement requirements described in items (i) through (iii) of subparagraph (C) of this paragraph (1), the long-term plan shall prioritize compliance with the new wind and new photovoltaic procurement requirements described in items (i) through (iii) of subparagraph (C) of this paragraph (1) over the annual percentage targets described in this subparagraph (B).

For the delivery year beginning June 1, 2017, the procurement plan shall include cost-effective renewable energy resources equal to at least 13% of each utility's load for eligible retail customers and 13% of the applicable portion of each utility's load for retail customers who are not eligible retail customers, which applicable portion shall equal 50% of the utility's load for retail customers who are not eligible retail customers on February 28, 2017.

For the delivery year beginning June 1, 2018, the procurement plan shall include cost-effective renewable energy resources equal to at least 14.5% of each utility's load for eligible retail customers and 14.5% of the applicable portion of each utility's load for retail customers who are not eligible retail customers, which applicable portion shall equal 75% of the utility's load for retail customers who are not eligible retail customers on February 28, 2017.

For the delivery year beginning June 1, 2019, and for each year thereafter, the procurement plans shall include cost-effective renewable energy resources equal to a minimum percentage of each utility's load for all retail customers as follows: 16% by June 1, 2019; increasing by 1.5% each year thereafter to 25% by June 1, 2025; and 25% by June 1, 2026 and each year thereafter.

For each delivery year, the Agency shall first recognize each utility's obligations for that delivery year under existing contracts. Any renewable energy credits under existing contracts, including renewable energy credits as part of renewable energy resources, shall be used to meet the goals set forth in this subsection (c) for the delivery year.

Notwithstanding the provisions of this subparagraph (B), the percentage goals identified in this subparagraph for the procurement of cost-effective renewable energy resources shall not apply after the delivery year ending May 31, 2022.

(B-5) Beginning after the effective date of this amendatory Act of the 102nd General Assembly, subject to subparagraph (F) of this paragraph (1), the long-term renewable resources procurement plan, as revised, shall include the goal of procuring a total of 35,000,000 additional annual renewable energy credits by the delivery year commencing June 1, 2030, which amount shall be procured in accordance with subparagraph (C-5) of this paragraph (1).

(C) Of the renewable energy credits procured under this subsection (c), at least 75% shall come from wind and photovoltaic projects. The long-term renewable resources procurement plan described in subparagraph (A) of this paragraph (1) shall include the procurement of renewable energy credits in amounts equal to at least the following:

(i) By the end of the 2020 delivery year:

At least 2,000,000 renewable energy credits for each delivery year shall come from new wind projects; and

At least 2,000,000 renewable energy credits for each delivery year shall come from new photovoltaic projects; of that amount, to the extent possible, the Agency shall procure: at least 50% from solar photovoltaic projects using the program outlined in subparagraph (K) of this paragraph (1) from distributed renewable energy generation devices or community renewable generation projects; at least 40% from utility-scale solar projects; at least 2% from brownfield site photovoltaic projects that are not community renewable generation projects; and the remainder shall be determined through the long-term planning process described in subparagraph (A) of this paragraph (1).

(ii) By the end of the 2025 delivery year:

At least 3,000,000 renewable energy credits for each delivery year shall come from new wind projects; and

At least 3,000,000 renewable energy credits for each delivery year shall come from new photovoltaic projects; of that amount, to the extent possible, the Agency shall procure: at least 50% from solar photovoltaic projects using the program outlined in subparagraph (K) of this paragraph (1) from distributed renewable energy devices or community renewable generation projects; at least 40% from utility-scale solar projects; at least 2% from brownfield site photovoltaic projects that are not community renewable generation projects; and the remainder shall be determined through the long-term planning process described in subparagraph (A) of this paragraph (1).

(iii) By the end of the 2030 delivery year:

At least 4,000,000 renewable energy credits for each delivery year shall come from new wind projects; and

At least 4,000,000 renewable energy credits for each delivery year shall come from new photovoltaic projects; of that amount, to the extent possible, the Agency shall procure: at least 50% from solar photovoltaic projects using the program outlined in subparagraph (K) of this paragraph (1) from distributed renewable energy devices or community renewable generation projects; at least 40% from utility-scale solar projects; at least 2% from brownfield site photovoltaic projects that are not community renewable generation projects; and the remainder shall be determined through the long-term planning process described in subparagraph (A) of this paragraph (1).

For purposes of this Section:

"New wind projects" means wind renewable energy facilities that are energized after June 1, 2017 for the delivery year commencing June 1, 2017 or within 3 years after the date the Commission approves contracts for subsequent delivery years.

"New photovoltaic projects" means photovoltaic renewable energy facilities that are energized after June 1, 2017. Photovoltaic projects developed under Section 1-56 of this Act shall not apply toward towards the new photovoltaic project requirements in this subparagraph (C).

Notwithstanding the provisions of this subparagraph (C), the renewable energy credit procurement requirements and goals of this subparagraph shall not apply after the delivery year ending May 31, 2022.

(C-5) Beginning after the effective date of this amendatory Act of the 102nd General Assembly, the long-term renewable resources procurement plan described in subparagraph (A) of this paragraph (1), as revised, shall include the procurement of renewable energy credits in amounts equal to at least 35,000,000 renewable energy credits from wind and solar projects by the end of the delivery year commencing June 1, 2030. Of that amount:

(i) at least 25,000,000 of the renewable energy credits shall be procured for electric utilities that serve less than 3,000,000 retail customers but more than 500,000 retail customers in the State; and

(ii) at least 10,000,000 of the renewable energy credits shall be procured for electric utilities that serve more than 3,000,000 retail customers in the State.

The Agency's planning and procurement processes to implement the provisions of this subparagraph (C-5) shall conform to the requirements of subparagraph (I) of this paragraph (1), and the Agency shall be permitted to use those competitive procurement processes and programs authorized by this paragraph (1) to effect such implementation.

(D) Renewable energy credits shall be cost-effective cost effective. For purposes of this subsection (c), "cost-effective" "cost effective" means that the costs of procuring renewable energy resources do not cause the limit stated in subparagraph (E) of this paragraph (1) to be exceeded and, for renewable energy credits procured through a competitive procurement event, do not exceed benchmarks based on market prices for like products in the region. For purposes of this subsection (c), "like products" means contracts for renewable energy credits from the same or substantially similar technology, same or substantially similar vintage (new or existing), the same or substantially similar quantity, and the same or substantially similar contract length and structure. Benchmarks shall be developed by the procurement administrator, in consultation with the Commission staff, Agency staff, and the procurement monitor and shall be subject to Commission review and approval. If price benchmarks for like products in the region are not available, the procurement administrator shall establish price benchmarks based on publicly available data on regional technology costs and expected current and future regional energy prices. The benchmarks in this Section shall not be used to curtail or otherwise reduce contractual obligations entered into by or through the Agency prior to June 1, 2017 (the effective date of Public Act 99-906).

(E) For purposes of this subsection (c), the required procurement of cost-effective renewable energy resources for a particular year commencing prior to June 1, 2017 shall be measured as a percentage of the actual amount of electricity (megawatt-hours) supplied by the electric utility to eligible retail customers in the delivery year ending immediately prior to the procurement, and, for delivery years commencing on and after June 1, 2017, the required procurement of cost-effective renewable energy resources for a particular year shall be measured as a percentage of the actual amount of electricity (megawatt-hours) delivered by the electric utility in the delivery year ending immediately prior to the procurement, to all retail customers in its service territory. For purposes of this subsection (c), the amount paid per kilowatthour means the total amount paid for electric service expressed on a per kilowatthour basis. For purposes of this subsection (c), the total amount paid for electric service includes without limitation amounts paid for supply, transmission, distribution, surcharges, and add-on taxes.

Notwithstanding the requirements of this subsection (c), the total of renewable energy resources procured under the procurement plan for any single year shall be subject to the limitations of this subparagraph (E). Such procurement shall be reduced for all retail customers based on the amount necessary to limit the annual estimated average net increase due to the costs of these resources included in the amounts paid by eligible retail customers in connection with electric service to no more than the greater of 2.015% of the amount paid per kilowatthour by those customers during the year ending May 31, 2007 or the incremental amount per kilowatthour paid for these resources in 2011. Beginning with the delivery year commencing June 1, 2022, the 2.015% of the amount paid per kilowatthour by those customers during the year ending May 31, 2022 is increased to 4.030%. To arrive at a maximum dollar amount of renewable energy resources to be procured for the particular delivery year, the resulting per kilowatthour amount shall be applied to the actual amount of kilowatthours of electricity delivered, or applicable portion of such amount as specified in paragraph (1) of this subsection (c), as applicable, by the electric utility in the delivery year immediately prior to the procurement to all retail customers in its service territory. The calculations required by this subparagraph (E) shall be made only once for each delivery year at the time that the renewable energy resources are procured. Once the determination as to the amount of renewable energy resources to procure is made based on the calculations set forth in this subparagraph (E) and the contracts procuring those amounts are executed, no subsequent rate impact determinations shall be made and no adjustments to those contract amounts shall be allowed. All costs incurred under such contracts shall be fully recoverable by the electric utility as provided in this Section.

(F) If the limitation on the amount of renewable energy resources procured in subparagraph (E) of this paragraph (1) prevents the Agency from meeting all of the goals in this subsection (c), the Agency's long-term plan shall prioritize compliance with the requirements of this subsection (c) regarding renewable energy credits in the following order:

(i) renewable energy credits under existing contractual obligations;

(i-5) funding for the Illinois Solar for All Program, as described in subparagraph (O) of this paragraph (1);

(i-10) funding for the school solar program set forth in item (iv) of subparagraph (K) and subparagraph (K-10) of this paragraph (1);

(ii) renewable energy credits necessary to comply with the new wind and new photovoltaic procurement requirements described in items (i) through (iii) of subparagraph (C) of this paragraph (1); and

(iii) renewable energy credits necessary to meet the remaining requirements of this subsection (c).

(G) The following provisions shall apply to the Agency's procurement of renewable energy credits under this subsection (c):

(i) Notwithstanding whether a long-term renewable resources procurement plan has been approved, the Agency shall conduct an initial forward procurement for renewable energy credits from new utility-scale wind projects within 160 days after June 1, 2017 (the effective date of Public Act 99-906). For the purposes of this initial forward procurement, the Agency shall solicit 15-year contracts for delivery of 1,000,000 renewable energy credits delivered annually from new utility-scale wind projects to begin delivery on June 1, 2019, if available, but not later than June 1, 2021, unless the project has delays in the establishment of an operating interconnection with the applicable transmission or distribution system as a result of the actions or inactions of the transmission or distribution provider, or other causes for force majeure as outlined in the procurement contract, in which case, not later than June 1, 2022. Payments to suppliers of renewable energy credits shall commence upon delivery; however, for those contracts executed after the effective date of this amendatory Act of the 102nd General Assembly, payments to a supplier of renewable energy credits shall commence upon delivery and after the supplier submits proof of compliance with subsection (d-20) of this Section. Renewable energy credits procured under this initial procurement shall be included in the Agency's long-term plan and shall apply to all renewable energy goals in this subsection (c).

(ii) Notwithstanding whether a long-term renewable resources procurement plan has been approved, the Agency shall conduct an initial forward procurement for renewable energy credits from new utility-scale solar projects and brownfield site photovoltaic projects within one year after June 1, 2017 (the effective date of Public Act 99-906). For the purposes of this initial forward procurement, the Agency shall solicit 15-year contracts for delivery of 1,000,000 renewable energy credits delivered annually from new utility-scale solar projects and brownfield site photovoltaic projects to begin delivery on June 1, 2019, if available, but not later than June 1, 2021, unless the project has delays in the establishment of an operating interconnection with the applicable transmission or distribution system as a result of the actions or inactions of the transmission or distribution provider, or other causes for force majeure as outlined in the procurement contract, in which case, not later than June 1, 2022. The Agency may structure this initial procurement in one or more discrete procurement events. Payments to suppliers of renewable energy credits shall commence upon delivery; however, for those contracts executed after the effective date of this amendatory Act of the 102nd General Assembly, payments to a supplier of renewable energy credits shall commence upon delivery and after the supplier submits proof of compliance with subsection (d-20) of this Section. Renewable energy credits procured under this initial procurement shall be included in the Agency's long-term plan and shall apply to all renewable energy goals in this subsection (c).

(iii) Subsequent forward procurements for utility-scale wind projects shall solicit at least 1,000,000 renewable energy credits delivered annually per procurement event and shall be planned, scheduled, and designed such that the cumulative amount of renewable energy credits delivered from all new wind projects in each delivery year shall not exceed the Agency's projection of the cumulative amount of renewable energy credits that will be delivered from all new photovoltaic projects, including utility-scale and distributed photovoltaic devices, in the same delivery year at the time scheduled for wind contract delivery.

(iv) If, at any time after the time set for delivery of renewable energy credits pursuant to the initial procurements in items (i) and (ii) of this subparagraph (G), the cumulative amount of renewable energy credits projected to be delivered from all new wind projects in a given delivery year exceeds the cumulative amount of renewable energy credits projected to be delivered from all new photovoltaic projects in that delivery year by 200,000 or more renewable energy credits, then the Agency shall within 60 days adjust the procurement programs in the long-term renewable resources procurement plan to ensure that the projected cumulative amount of renewable energy credits to be delivered from all new wind projects does not exceed the projected cumulative amount of renewable energy credits to be delivered from all new photovoltaic projects by 200,000 or more renewable energy credits, provided that nothing in this Section shall preclude the projected cumulative amount of renewable energy credits to be delivered from all new photovoltaic projects from exceeding the projected cumulative amount of renewable energy credits to be delivered from all new wind projects in each delivery year and provided further that nothing in this item (iv) shall require the curtailment of an executed contract. The Agency shall update, on a quarterly basis, its projection of the renewable energy credits to be delivered from all projects in each delivery year. Notwithstanding anything to the contrary, the Agency may adjust the timing of procurement events conducted under this subparagraph (G). The long-term renewable resources procurement plan shall set forth the process by which the adjustments may be made.

(v) All procurements under this subparagraph (G) shall comply with the geographic requirements in subparagraph (I) of this paragraph (1) and shall follow the procurement processes and procedures described in this Section and Section 16-111.5 of the Public Utilities Act to the extent practicable, and these processes and procedures may be expedited to accommodate the schedule established by this subparagraph (G).

(H) The procurement of renewable energy resources for a given delivery year shall be reduced as described in this subparagraph (H) if an alternative retail electric supplier meets the requirements described in this subparagraph (H).

(i) Within 45 days after June 1, 2017 (the effective date of Public Act 99-906), an alternative retail electric supplier or its successor shall submit an informational filing to the Illinois Commerce Commission certifying that, as of December 31, 2015, the alternative retail electric supplier owned one or more electric generating facilities that generates renewable energy resources as defined in Section 1-10 of this Act, provided that such facilities are not powered by wind or photovoltaics, and the facilities generate one renewable energy credit for each megawatthour of energy produced from the facility.

The informational filing shall identify each facility that was eligible to satisfy the alternative retail electric supplier's obligations under Section 16-115D of the Public Utilities Act as described in this item (i).

(ii) For a given delivery year, the alternative retail electric supplier may elect to supply its retail customers with renewable energy credits from the facility or facilities described in item (i) of this subparagraph (H) that continue to be owned by the alternative retail electric supplier.

(iii) The alternative retail electric supplier shall notify the Agency and the applicable utility, no later than February 28 of the year preceding the applicable delivery year or 15 days after June 1, 2017 (the effective date of Public Act 99-906), whichever is later, of its election under item (ii) of this subparagraph (H) to supply renewable energy credits to retail customers of the utility. Such election shall identify the amount of renewable energy credits to be supplied by the alternative retail electric supplier to the utility's retail customers and the source of the renewable energy credits identified in the informational filing as described in item (i) of this subparagraph (H), subject to the following limitations:

For the delivery year beginning June 1, 2018, the maximum amount of renewable energy credits to be supplied by an alternative retail electric supplier under this subparagraph (H) shall be 68% multiplied by 25% multiplied by 14.5% multiplied by the amount of metered electricity (megawatt-hours) delivered by the alternative retail electric supplier to Illinois retail customers during the delivery year ending May 31, 2016.

For delivery years beginning June 1, 2019 and each year thereafter, the maximum amount of renewable energy credits to be supplied by an alternative retail electric supplier under this subparagraph (H) shall be 68% multiplied by 50% multiplied by 16% multiplied by the amount of metered electricity (megawatt-hours) delivered by the alternative retail electric supplier to Illinois retail customers during the delivery year ending May 31, 2016, provided that the 16% value shall increase by 1.5% each delivery year thereafter to 25% by the delivery year beginning June 1, 2025, and thereafter the 25% value shall apply to each delivery year.

For each delivery year, the total amount of renewable energy credits supplied by all alternative retail electric suppliers under this subparagraph (H) shall not exceed 9% of the Illinois target renewable energy credit quantity. The Illinois target renewable energy credit quantity for the delivery year beginning June 1, 2018 is 14.5% multiplied by the total amount of metered electricity (megawatt-hours) delivered in the delivery year immediately preceding that delivery year, provided that the 14.5% shall increase by 1.5% each delivery year thereafter to 25% by the delivery year beginning June 1, 2025, and thereafter the 25% value shall apply to each delivery year.

If the requirements set forth in items (i) through (iii) of this subparagraph (H) are met, the charges that would otherwise be applicable to the retail customers of the alternative retail electric supplier under paragraph (6) of this subsection (c) for the applicable delivery year shall be reduced by the ratio of the quantity of renewable energy credits supplied by the alternative retail electric supplier compared to that supplier's target renewable energy credit quantity. The supplier's target renewable energy credit quantity for the delivery year beginning June 1, 2018 is 14.5% multiplied by the total amount of metered electricity (megawatt-hours) delivered by the alternative retail supplier in that delivery year, provided that the 14.5% shall increase by 1.5% each delivery year thereafter to 25% by the delivery year beginning June 1, 2025, and thereafter the 25% value shall apply to each delivery year.

On or before April 1 of each year, the Agency shall annually publish a report on its website that identifies the aggregate amount of renewable energy credits supplied by alternative retail electric suppliers under this subparagraph (H).

(I) The Agency shall design its long-term renewable energy procurement plan to maximize the State's interest in the health, safety, and welfare of its residents, including but not limited to ensuring that the renewable energy credits procured match the load of each utility consistent with subsection (j) of this Section and in a least-cost manner, which will advance the State's goals of minimizing sulfur dioxide, nitrogen oxide, particulate matter and other pollution that adversely affects public health in this State, increasing fuel and resource diversity in this State, enhancing the reliability and resiliency of the electricity distribution system in this State, meeting goals to limit carbon dioxide emissions under federal or State law, and contributing to a cleaner and healthier environment for the citizens of this State. Therefore, in In order to further these legislative purposes, renewable energy credits shall be eligible to be counted toward the renewable energy requirements of this subsection (c) if they are generated from facilities that can deliver to the purchasing utility located in this State. The Agency may qualify renewable energy credits from facilities located in states adjacent to Illinois if the generator demonstrates and the Agency determines that the operation of such facility or facilities will help promote the State's interest in the health, safety, and welfare of its residents based on the public interest criteria described above. To ensure that the public interest criteria are applied to the procurement and given full effect, the Agency's long-term procurement plan shall describe in detail how each public interest factor shall be considered and weighted for facilities located in states adjacent to Illinois.

(J) In order to promote the competitive development of renewable energy resources in furtherance of the State's interest in the health, safety, and welfare of its residents, renewable energy credits shall not be eligible to be counted toward the renewable energy requirements of this subsection (c) if they are sourced from a generating unit whose costs were being recovered through rates regulated by this State or any other state or states on or after January 1, 2017. Each contract executed to purchase renewable energy credits under this subsection (c) shall provide for the contract's termination if the costs of the generating unit supplying the renewable energy credits subsequently begin to be recovered through rates regulated by this State or any other state or states; and each contract shall further provide that, in that event, the supplier of the credits must return 110% of all payments received under the contract. Amounts returned under the requirements of this subparagraph (J) shall be retained by the utility and all of these amounts shall be used for the procurement of additional renewable energy credits from new wind or new photovoltaic resources as defined in this subsection (c). The long-term plan shall provide that these renewable energy credits shall be procured in the next procurement event.

Notwithstanding the limitations of this subparagraph (J), renewable energy credits sourced from generating units that are constructed, purchased, owned, or leased by an electric utility as part of an approved project, program, or pilot under Section 1-56 of this Act shall be eligible to be counted toward the renewable energy requirements of this subsection (c), regardless of how the costs of these units are recovered.

(K) The long-term renewable resources procurement plan developed by the Agency in accordance with subparagraph (A) of this paragraph (1) shall include an Adjustable Block program for the procurement of renewable energy credits from new photovoltaic projects that are distributed renewable energy generation devices or new photovoltaic community renewable generation projects. The Adjustable Block program shall be designed to provide a transparent schedule of prices and quantities to enable the photovoltaic market to scale up and for renewable energy credit prices to adjust at a predictable rate over time. The prices set by the Adjustable Block program can be reflected as a set value or as the product of a formula.

The Adjustable Block program shall include for each category of eligible projects: a schedule of standard block purchase prices to be offered; a series of steps, with associated nameplate capacity and purchase prices that adjust from step to step; and automatic opening of the next step as soon as the nameplate capacity and available purchase prices for an open step are fully committed or reserved. Only projects energized on or after June 1, 2017 shall be eligible for the Adjustable Block program. For each block group the Agency shall determine the number of blocks, the amount of generation capacity in each block, and the purchase price for each block, provided that the purchase price provided and the total amount of generation in all blocks for all block groups shall be sufficient to meet the goals in this subsection (c). The Agency may periodically review its prior decisions establishing the number of blocks, the amount of generation capacity in each block, and the purchase price for each block, and may propose, on an expedited basis, changes to these previously set values, including but not limited to redistributing these amounts and the available funds as necessary and appropriate, subject to Commission approval as part of the periodic plan revision process described in Section 16-111.5 of the Public Utilities Act. The Agency may define different block sizes, purchase prices, or other distinct terms and conditions for projects located in different utility service territories if the Agency deems it necessary to meet the goals in this subsection (c).

The Adjustable Block program shall include at least the following block groups in at least the following amounts, which may be adjusted upon review by the Agency and approval by the Commission as described in this subparagraph (K), all of which are subject to the prioritization of the school solar program described in subparagraph (K-10) of this paragraph (1):

(i) At least 25% from distributed renewable energy generation devices with a nameplate capacity of no more than 10 kilowatts.

(ii) At least 25% from distributed renewable energy generation devices with a nameplate capacity of more than 10 kilowatts and no more than 2,000 kilowatts. The Agency may create sub-categories within this category to account for the differences between projects for small commercial customers, large commercial customers, and public or non-profit customers.

(iii) At least 25% from photovoltaic community renewable generation projects.

(iv) Until the effective date of this amendatory Act of the 102nd General Assembly, the The remaining 25% shall be allocated as specified by the Agency in the long-term renewable resources procurement plan; after the effective date of this amendatory Act of the 102nd General Assembly, such remaining 25% shall be allocated to the school solar program described in subparagraph (K-10) of this paragraph (1).

The Adjustable Block program shall be designed to ensure that renewable energy credits are procured from photovoltaic distributed renewable energy generation devices and new photovoltaic community renewable energy generation projects in diverse locations and are not concentrated in a few geographic areas.

(K-5) Beginning immediately after the effective date of this amendatory Act of the 102nd General Assembly, the Agency shall develop and implement a scoring system to evaluate and rank those new photovoltaic community renewable energy generation projects that are submitted under subparagraph (K) of this paragraph (1) when the number of such submissions exceeds the applicable block capacity under the Adjustable Block program. The scoring system shall be designed to ensure that renewable energy credits are procured from new photovoltaic community renewable energy generation projects in diverse geographic locations while also maximizing the number of subscribers that can subscribe to the projects. For each such project, the Agency's scoring system shall consider, and assign a numerical point value to, each of the following factors, provided that factors (i) and (vi) shall be accorded the most weight:

(i) Population Density: This factor shall consider the population density of the township in which the project will be located and award the highest point value to those projects to be sited in townships with the highest development density.

(ii) Subscriber Proximity: This factor shall award a point value to those projects that have committed to only serve subscribers located in the same township as the project; for townships with fewer than 50,000 residents, subscribers from adjacent townships can be included to satisfy this factor.

(iii) Community Impact: This factor shall award a point value to those projects to be located in environmental justice communities, as defined by the Agency in its Long-Term Renewable Resources Procurement Plan; low-income communities, where consideration shall be given to the percentage of households that earn an income of 80% or less of the area median with projects to be located in communities where greater than 50% of households earn 80% or less of the area median income shall be awarded the highest point value; and Disproportionately Impacted Areas, as defined by and identified under the Business Interruption Grant program offered by the Department of Commerce and Economic Opportunity to provide economic relief to those small businesses most impacted by the COVID-19 pandemic.

(iv) Workforce Equity: This factor shall account for workforce equity achievements that are reflected in the project's workforce, including, but not limited to, employees who are or were foster children, veterans, returning citizens, attendees of a Tier 1 or Tier 2 school, as defined by subparagraph (K-10) of this paragraph (1) or residents of a Disproportionately Impacted Area as defined in factor (vi) of this subparagraph (K-5). The employers of such employees may include, but shall not be limited to, the following: the Agency-approved entity that submits the project application; the project's engineering, procurement and construction firm; a supplier of the project's components, materials and supplies; and the project entity itself. The Agency shall award point values based on the extent to which the project's workforce reflects such equity achievements.

(v) Participant Savings: This factor shall account for the extent to which the project will pass along its savings to low-income participants, and award the highest point value to those projects that will pass along 100% of the savings to such customers. For purposes of this item (viii), "low-income" means households whose income does not exceed 80% of area median income.

(vi) Redevelopment Site: This factor shall award a point value to those projects that will be located on the site of a current or former conventional electric generating facility, which, for purposes of this subparagraph (K-5), includes coal-fired electric generating facilities, gas-fired electric generating facilities, and nuclear-fueled electric generating facilities.

(vii) Preapprenticeship Program: This factor shall account for the extent to which the project's workforce and employees include graduates of the preapprenticeship program set forth in subsection (d-20) of this Section 1-75. The employers of such employees may include, but shall not be limited to, the following: the Agency-approved entity that submits the project application; the project's engineering, procurement and construction firm; a supplier of the project's components, materials and supplies; and the project entity itself. The Agency shall award point values based on the number of such graduates that are employed through the project's workforce.

The Agency shall assign at least one point that may be awarded under each factor, and the total point value to be awarded under the factors shall be at least 7 points. In order to be eligible to participate in an Adjustable Block program procurement for new photovoltaic community renewable energy generation projects held under subparagraph (K) of this paragraph (1), the project must receive a total score of at least 5 points from no fewer than 3 separate factors. If 2 or more projects have the same score, the Agency shall use a pay-as-bid auction among such projects to fill any remaining block capacity. However, if the size of the remaining block capacity is constrained such that it can only accommodate one or more projects below a certain size threshold, then the Agency may only consider those projects that would not exceed the remaining block capacity.

To the extent feasible and consistent with State and federal law, the Agency's implementation of this subparagraph (K-5) shall be designed to ensure that the projects selected provide employment opportunities for all segments of the population and workforce, including minority-owned, female-owned, veteran-owned, and disability-owned business enterprises, and shall not, consistent with State and federal law, discriminate based on race or socioeconomic status.

(K-10) School Solar Program. Beginning on the effective date of this amendatory Act of the 102nd General Assembly, and notwithstanding anything to the contrary, the Agency's updates to its long-term renewable resources procurement plan pursuant to item (ii) of subparagraph (B) of paragraph (5) of subsection (b) of Section 16-111.5 of the Public Utilities Act shall allocate, for each applicable delivery year, at least 25% of the Adjustable Block program's available funding to the procurement of renewable energy credits from photovoltaic distributed renewable energy generation devices installed at public schools throughout the State. Such procurements shall be designed to support the installation of at least 2.5 gigawatts of photovoltaic distributed renewable energy generation devices at public schools by 2030. To ensure that the State remains on track to achieve this goal, and to relieve oversubscriptions to this program, the Agency shall allocate to a given delivery year or years more than 25% of the funding available for the Adjustable Block program for such delivery year or years. If the Agency finds that a procurement under this subparagraph (K-10) is oversubscribed such that the number of eligible projects exceeds the available funding, the Agency shall prioritize the procurement of renewable energy credits from photovoltaic distributed renewable energy generation devices installed at public schools based on a scoring system that takes into account, and gives the highest prioritization to, the following factors:

(i) projects located within environmental justice communities or within Organizational Units that fall within Tier 1 or Tier 2, which criteria shall be given the highest of all priorities;

(ii) projects that serve greater than 90% of a school facility's electricity usage;

(iii) projects that are done in coordination with significant energy efficiency efforts; and

(iv) projects that support decarbonization of heating systems and transportation.

The Agency shall also include in such a scoring system those additional criteria from items (i) through (vii) of subparagraph (K-5) of this paragraph (1) that are reasonably helpful in advancing the goals of this subparagraph (K-10).

For purposes of this subparagraph (K-10):

"Distributed renewable energy generation device" shall have the meaning set forth in Section 1-10 of this Act, except that the 2,000 kilowatts limitation on nameplate capacity imposed by paragraph (4) of such definition shall be increased to 5,000 kilowatts;

"Environmental justice communities" shall have the meaning set forth in the Agency's Long-Term Renewable Resources Procurement Plan;

"Organization Unit", "Tier 1", and "Tier 2" shall have the meanings set forth in Section 18-8.15 of the School Code; and

"Public schools" shall have the meaning set forth in Section 1-3 of the School Code.

The Agency's update to its long-term renewable resources procurement plan to incorporate the procurement described in this subparagraph (K-10) shall also include the proposed quantities or blocks, pricing, and contract terms applicable to the procurement; however, the price shall not be set at an amount that is less than $60 per renewable energy credit and the contract length shall be for 25 years. The Agency shall establish pricing and payment terms for the renewable energy credits procured pursuant to this subparagraph (K-10) that make it feasible and affordable for public schools to install photovoltaic distributed renewable energy devices on their premises, including, but not limited to, those public schools subject to the prioritization provisions of this subparagraph. In no event shall the contract payment term period extend beyond the period set forth in item (iii) of subparagraph (L) of this paragraph (1), and the Agency shall be permitted to shorten this period in order to achieve the objectives identified in this subparagraph (K-10).

(L) The procurement of photovoltaic renewable energy credits under items (i) through (iv) of subparagraph (K) of this paragraph (1) shall be subject to the following contract and payment terms:

(i) The Agency shall procure contracts of at least 15 years in length.

(ii) For those renewable energy credits that qualify and are procured under item (i) of subparagraph (K) of this paragraph (1), the renewable energy credit purchase price shall be paid in full by the contracting utilities at the time that the facility producing the renewable energy credits is interconnected at the distribution system level of the utility and energized; however, for those contracts executed after the effective date of this amendatory Act of the 102nd General Assembly, such purchase price shall be paid in full by the contracting utilities at the time that the facility producing the renewable energy credits is interconnected at the distribution system level of the utility and energized and after the supplier submits proof of compliance with subsection (d-20) of this Section. The electric utility shall receive and retire all renewable energy credits generated by the project for the first 15 years of operation.

(iii) For those renewable energy credits that qualify and are procured under item (ii) and (iii) of subparagraph (K) of this paragraph (1) and any additional categories of distributed generation included in the long-term renewable resources procurement plan and approved by the Commission, 20 percent of the renewable energy credit purchase price shall be paid by the contracting utilities at the time that the facility producing the renewable energy credits is interconnected at the distribution system level of the utility and energized; however, for those contracts executed after the effective date of this amendatory Act of the 102nd General Assembly, such purchase price shall be paid by the contracting utilities at the time that the facility producing the renewable energy credits is interconnected at the distribution system level of the utility and energized and after the supplier submits proof of compliance with subsection (d-20) of this Section. The remaining portion shall be paid ratably over the subsequent 4-year period. The electric utility shall receive and retire all renewable energy credits generated by the project for the first 15 years of operation.

(iv) Each contract shall include provisions to ensure the delivery of the renewable energy credits for the full term of the contract.

(v) The utility shall be the counterparty to the contracts executed under this subparagraph (L) that are approved by the Commission under the process described in Section 16-111.5 of the Public Utilities Act. No contract shall be executed for an amount that is less than one renewable energy credit per year.

(vi) If, at any time, approved applications for the Adjustable Block program exceed funds collected by the electric utility or would cause the Agency to exceed the limitation described in subparagraph (E) of this paragraph (1) on the amount of renewable energy resources that may be procured, then the Agency shall consider future uncommitted funds to be reserved for these contracts on a first-come, first-served basis, with the delivery of renewable energy credits required beginning at the time that the reserved funds become available.

(vii) Nothing in this Section shall require the utility to advance any payment or pay any amounts that exceed the actual amount of revenues collected by the utility under paragraph (6) of this subsection (c) and subsection (k) of Section 16-108 of the Public Utilities Act, and contracts executed under this Section shall expressly incorporate this limitation.

The procurement of renewable energy credits under subparagraph (K-10) of this paragraph (1) shall also be subject to the contract and payment terms set forth in items (i) through (vii) of this subparagraph (L) to the extent the terms do not conflict with the provisions or intent of subparagraph (K-10).

(M) The Agency shall be authorized to retain one or more experts or expert consulting firms to develop, administer, implement, operate, and evaluate the Adjustable Block program described in subparagraph (K) of this paragraph (1), and the Agency shall retain the consultant or consultants in the same manner, to the extent practicable, as the Agency retains others to administer provisions of this Act, including, but not limited to, the procurement administrator. The selection of experts and expert consulting firms and the procurement process described in this subparagraph (M) are exempt from the requirements of Section 20-10 of the Illinois Procurement Code, under Section 20-10 of that Code. The Agency shall strive to minimize administrative expenses in the implementation of the Adjustable Block program.

The Agency and its consultant or consultants shall monitor block activity, share program activity with stakeholders and conduct regularly scheduled meetings to discuss program activity and market conditions. If necessary, the Agency may make prospective administrative adjustments to the Adjustable Block program design, such as redistributing available funds or making adjustments to purchase prices as necessary to achieve the goals of this subsection (c). Program modifications to any price, capacity block, or other program element that do not deviate from the Commission's approved value by more than 25% shall take effect immediately and are not subject to Commission review and approval. Program modifications to any price, capacity block, or other program element that deviate more than 25% from the Commission's approved value must be approved by the Commission as a long-term plan amendment under Section 16-111.5 of the Public Utilities Act. The Agency shall consider stakeholder feedback when making adjustments to the Adjustable Block design and shall notify stakeholders in advance of any planned changes.

(N) The long-term renewable resources procurement plan required by this subsection (c) shall include a community renewable generation program. The Agency shall establish the terms, conditions, and program requirements for community renewable generation projects with a goal to expand renewable energy generating facility access to a broader group of energy consumers, to ensure robust participation opportunities for residential and small commercial customers and those who cannot install renewable energy on their own properties. Any plan approved by the Commission shall allow subscriptions to community renewable generation projects to be portable and transferable. For purposes of this subparagraph (N), "portable" means that subscriptions may be retained by the subscriber even if the subscriber relocates or changes its address within the same utility service territory; and "transferable" means that a subscriber may assign or sell subscriptions to another person within the same utility service territory.

Electric utilities shall provide a monetary credit to a subscriber's subsequent bill for service for the proportional output of a community renewable generation project attributable to that subscriber as specified in Section 16-107.5 of the Public Utilities Act.

The Agency shall purchase renewable energy credits from subscribed shares of photovoltaic community renewable generation projects through the Adjustable Block program described in subparagraph (K) of this paragraph (1) or through the Illinois Solar for All Program described in Section 1-56 of this Act. The electric utility shall purchase any unsubscribed energy from community renewable generation projects that are Qualifying Facilities ("QF") under the electric utility's tariff for purchasing the output from QFs under Public Utilities Regulatory Policies Act of 1978.

The owners of and any subscribers to a community renewable generation project shall not be considered public utilities or alternative retail electricity suppliers under the Public Utilities Act solely as a result of their interest in or subscription to a community renewable generation project and shall not be required to become an alternative retail electric supplier by participating in a community renewable generation project with a public utility.

(O) For the delivery year beginning June 1, 2018, the long-term renewable resources procurement plan required by this subsection (c) shall provide for the Agency to procure contracts to continue offering the Illinois Solar for All Program described in subsection (b) of Section 1-56 of this Act, and the contracts approved by the Commission shall be executed by the utilities that are subject to this subsection (c). The long-term renewable resources procurement plan shall allocate $75,000,000 5% of the funds available under the plan for the applicable delivery year, or $10,000,000 per delivery year, whichever is greater, to fund the programs, and the plan shall determine the amount of funding to be apportioned to the programs identified in subsection (b) of Section 1-56 of this Act; provided that for the delivery years beginning June 1, 2017, June 1, 2021, and June 1, 2025, the long-term renewable resources procurement plan shall allocate $85,000,000 10% of the funds available under the plan for the applicable delivery year, or $20,000,000 per delivery year, whichever is greater, and $10,000,000 of such funds in such year shall be used by an electric utility that serves more than 3,000,000 retail customers in the State to implement a Commission-approved plan under Section 16-108.12 of the Public Utilities Act. In making the determinations required under this subparagraph (O), the Commission shall consider the experience and performance under the programs and any evaluation reports. The Commission shall also provide for an independent evaluation of those programs on a periodic basis that are funded under this subparagraph (O).

The Agency shall be permitted to revise its long-term renewable resources procurement plan to conform its provisions to the changes made by this amendatory Act of the 102nd General Assembly and shall submit the revised plan to the Commission as a compliance filing.

(2) (Blank).

(3) (Blank).

(4) The electric utility shall retire all renewable energy credits used to comply with the standard.

(5) Beginning with the 2010 delivery year and ending June 1, 2017, an electric utility subject to this subsection (c) shall apply the lesser of the maximum alternative compliance payment rate or the most recent estimated alternative compliance payment rate for its service territory for the corresponding compliance period, established pursuant to subsection (d) of Section 16-115D of the Public Utilities Act to its retail customers that take service pursuant to the electric utility's hourly pricing tariff or tariffs. The electric utility shall retain all amounts collected as a result of the application of the alternative compliance payment rate or rates to such customers, and, beginning in 2011, the utility shall include in the information provided under item (1) of subsection (d) of Section 16-111.5 of the Public Utilities Act the amounts collected under the alternative compliance payment rate or rates for the prior year ending May 31. Notwithstanding any limitation on the procurement of renewable energy resources imposed by item (2) of this subsection (c), the Agency shall increase its spending on the purchase of renewable energy resources to be procured by the electric utility for the next plan year by an amount equal to the amounts collected by the utility under the alternative compliance payment rate or rates in the prior year ending May 31.

(6) The electric utility shall be entitled to recover all of its costs associated with the procurement of renewable energy credits under plans approved under this Section and Section 16-111.5 of the Public Utilities Act. These costs shall include associated reasonable expenses for implementing the procurement programs, including, but not limited to, the costs of administering and evaluating the Adjustable Block program, through an automatic adjustment clause tariff in accordance with subsection (k) of Section 16-108 of the Public Utilities Act.

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

In meeting the renewable energy requirements of this subsection (c), to the extent feasible and consistent with State and federal law, the renewable energy credit procurements, Adjustable Block solar program, and community renewable generation program shall provide employment opportunities for all segments of the population and workforce, including minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by a person with a disability and female-owned business enterprises, and shall not, consistent with State and federal law, discriminate based on race or socioeconomic status.

(d) Clean coal portfolio standard.

(1) The procurement plans shall include electricity generated using clean coal. Each utility shall enter into one or more sourcing agreements with the initial clean coal facility, as provided in paragraph (3) of this subsection (d), covering electricity generated by the initial clean coal facility representing at least 5% of each utility's total supply to serve the load of eligible retail customers in 2015 and each year thereafter, as described in paragraph (3) of this subsection (d), subject to the limits specified in paragraph (2) of this subsection (d). It is the goal of the State that by January 1, 2025, 25% of the electricity used in the State shall be generated by cost-effective clean coal facilities. For purposes of this subsection (d), "cost-effective" means that the expenditures pursuant to such sourcing agreements do not cause the limit stated in paragraph (2) of this subsection (d) to be exceeded and do not exceed cost-based benchmarks, which shall be developed to assess all expenditures pursuant to such sourcing agreements covering electricity generated by clean coal facilities, other than the initial clean coal facility, by the procurement administrator, in consultation with the Commission staff, Agency staff, and the procurement monitor and shall be subject to Commission review and approval.

A utility party to a sourcing agreement shall immediately retire any emission credits that it receives in connection with the electricity covered by such agreement.

Utilities shall maintain adequate records documenting the purchases under the sourcing agreement to comply with this subsection (d) and shall file an accounting with the load forecast that must be filed with the Agency by July 15 of each year, in accordance with subsection (d) of Section 16-111.5 of the Public Utilities Act.

A utility shall be deemed to have complied with the clean coal portfolio standard specified in this subsection (d) if the utility enters into a sourcing agreement as required by this subsection (d).

(2) For purposes of this subsection (d), the required execution of sourcing agreements with the initial clean coal facility for a particular year shall be measured as a percentage of the actual amount of electricity (megawatt-hours) supplied by the electric utility to eligible retail customers in the planning year ending immediately prior to the agreement's execution. For purposes of this subsection (d), the amount paid per kilowatthour means the total amount paid for electric service expressed on a per kilowatthour basis. For purposes of this subsection (d), the total amount paid for electric service includes without limitation amounts paid for supply, transmission, distribution, surcharges and add-on taxes.

Notwithstanding the requirements of this subsection (d), the total amount paid under sourcing agreements with clean coal facilities pursuant to the procurement plan for any given year shall be reduced by an amount necessary to limit the annual estimated average net increase due to the costs of these resources included in the amounts paid by eligible retail customers in connection with electric service to:

(A) in 2010, no more than 0.5% of the amount paid per kilowatthour by those customers during the year ending May 31, 2009;

(B) in 2011, the greater of an additional 0.5% of the amount paid per kilowatthour by those customers during the year ending May 31, 2010 or 1% of the amount paid per kilowatthour by those customers during the year ending May 31, 2009;

(C) in 2012, the greater of an additional 0.5% of the amount paid per kilowatthour by those customers during the year ending May 31, 2011 or 1.5% of the amount paid per kilowatthour by those customers during the year ending May 31, 2009;

(D) in 2013, the greater of an additional 0.5% of the amount paid per kilowatthour by those customers during the year ending May 31, 2012 or 2% of the amount paid per kilowatthour by those customers during the year ending May 31, 2009; and

(E) thereafter, the total amount paid under sourcing agreements with clean coal facilities pursuant to the procurement plan for any single year shall be reduced by an amount necessary to limit the estimated average net increase due to the cost of these resources included in the amounts paid by eligible retail customers in connection with electric service to no more than the greater of (i) 2.015% of the amount paid per kilowatthour by those customers during the year ending May 31, 2009 or (ii) the incremental amount per kilowatthour paid for these resources in 2013. These requirements may be altered only as provided by statute.

No later than June 30, 2015, the Commission shall review the limitation on the total amount paid under sourcing agreements, if any, with clean coal facilities pursuant to this subsection (d) and report to the General Assembly its findings as to whether that limitation unduly constrains the amount of electricity generated by cost-effective clean coal facilities that is covered by sourcing agreements.

(3) Initial clean coal facility. In order to promote development of clean coal facilities in Illinois, each electric utility subject to this Section shall execute a sourcing agreement to source electricity from a proposed clean coal facility in Illinois (the "initial clean coal facility") that will have a nameplate capacity of at least 500 MW when commercial operation commences, that has a final Clean Air Act permit on June 1, 2009 (the effective date of Public Act 95-1027), and that will meet the definition of clean coal facility in Section 1-10 of this Act when commercial operation commences. The sourcing agreements with this initial clean coal facility shall be subject to both approval of the initial clean coal facility by the General Assembly and satisfaction of the requirements of paragraph (4) of this subsection (d) and shall be executed within 90 days after any such approval by the General Assembly. The Agency and the Commission shall have authority to inspect all books and records associated with the initial clean coal facility during the term of such a sourcing agreement. A utility's sourcing agreement for electricity produced by the initial clean coal facility shall include:

(A) a formula contractual price (the "contract price") approved pursuant to paragraph (4) of this subsection (d), which shall:

(i) be determined using a cost of service methodology employing either a level or deferred capital recovery component, based on a capital structure consisting of 45% equity and 55% debt, and a return on equity as may be approved by the Federal Energy Regulatory Commission, which in any case may not exceed the lower of 11.5% or the rate of return approved by the General Assembly pursuant to paragraph (4) of this subsection (d); and

(ii) provide that all miscellaneous net revenue, including but not limited to net revenue from the sale of emission allowances, if any, substitute natural gas, if any, grants or other support provided by the State of Illinois or the United States Government, firm transmission rights, if any, by-products produced by the facility, energy or capacity derived from the facility and not covered by a sourcing agreement pursuant to paragraph (3) of this subsection (d) or item (5) of subsection (d) of Section 16-115 of the Public Utilities Act, whether generated from the synthesis gas derived from coal, from SNG, or from natural gas, shall be credited against the revenue requirement for this initial clean coal facility;

(B) power purchase provisions, which shall:

(i) provide that the utility party to such sourcing agreement shall pay the contract price for electricity delivered under such sourcing agreement;

(ii) require delivery of electricity to the regional transmission organization market of the utility that is party to such sourcing agreement;

(iii) require the utility party to such sourcing agreement to buy from the initial clean coal facility in each hour an amount of energy equal to all clean coal energy made available from the initial clean coal facility during such hour times a fraction, the numerator of which is such utility's retail market sales of electricity (expressed in kilowatthours sold) in the State during the prior calendar month and the denominator of which is the total retail market sales of electricity (expressed in kilowatthours sold) in the State by utilities during such prior month and the sales of electricity (expressed in kilowatthours sold) in the State by alternative retail electric suppliers during such prior month that are subject to the requirements of this subsection (d) and paragraph (5) of subsection (d) of Section 16-115 of the Public Utilities Act, provided that the amount purchased by the utility in any year will be limited by paragraph (2) of this subsection (d); and

(iv) be considered preexisting pre-existing contracts in such utility's procurement plans for eligible retail customers;

(C) contract for differences provisions, which shall:

(i) require the utility party to such sourcing agreement to contract with the initial clean coal facility in each hour with respect to an amount of energy equal to all clean coal energy made available from the initial clean coal facility during such hour times a fraction, the numerator of which is such utility's retail market sales of electricity (expressed in kilowatthours sold) in the utility's service territory in the State during the prior calendar month and the denominator of which is the total retail market sales of electricity (expressed in kilowatthours sold) in the State by utilities during such prior month and the sales of electricity (expressed in kilowatthours sold) in the State by alternative retail electric suppliers during such prior month that are subject to the requirements of this subsection (d) and paragraph (5) of subsection (d) of Section 16-115 of the Public Utilities Act, provided that the amount paid by the utility in any year will be limited by paragraph (2) of this subsection (d);

(ii) provide that the utility's payment obligation in respect of the quantity of electricity determined pursuant to the preceding clause (i) shall be limited to an amount equal to (1) the difference between the contract price determined pursuant to subparagraph (A) of paragraph (3) of this subsection (d) and the day-ahead price for electricity delivered to the regional transmission organization market of the utility that is party to such sourcing agreement (or any successor delivery point at which such utility's supply obligations are financially settled on an hourly basis) (the "reference price") on the day preceding the day on which the electricity is delivered to the initial clean coal facility busbar, multiplied by (2) the quantity of electricity determined pursuant to the preceding clause (i); and

(iii) not require the utility to take physical delivery of the electricity produced by the facility;

(D) general provisions, which shall:

(i) specify a term of no more than 30 years, commencing on the commercial operation date of the facility;

(ii) provide that utilities shall maintain adequate records documenting purchases under the sourcing agreements entered into to comply with this subsection (d) and shall file an accounting with the load forecast that must be filed with the Agency by July 15 of each year, in accordance with subsection (d) of Section 16-111.5 of the Public Utilities Act;

(iii) provide that all costs associated with the initial clean coal facility will be periodically reported to the Federal Energy Regulatory Commission and to purchasers in accordance with applicable laws governing cost-based wholesale power contracts;

(iv) permit the Illinois Power Agency to assume ownership of the initial clean coal facility, without monetary consideration and otherwise on reasonable terms acceptable to the Agency, if the Agency so requests no less than 3 years prior to the end of the stated contract term;

(v) require the owner of the initial clean coal facility to provide documentation to the Commission each year, starting in the facility's first year of commercial operation, accurately reporting the quantity of carbon emissions from the facility that have been captured and sequestered and report any quantities of carbon released from the site or sites at which carbon emissions were sequestered in prior years, based on continuous monitoring of such sites. If, in any year after the first year of commercial operation, the owner of the facility fails to demonstrate that the initial clean coal facility captured and sequestered at least 50% of the total carbon emissions that the facility would otherwise emit or that sequestration of emissions from prior years has failed, resulting in the release of carbon dioxide into the atmosphere, the owner of the facility must offset excess emissions. Any such carbon offsets must be permanent, additional, verifiable, real, located within the State of Illinois, and legally and practicably enforceable. The cost of such offsets for the facility that are not recoverable shall not exceed $15 million in any given year. No costs of any such purchases of carbon offsets may be recovered from a utility or its customers. All carbon offsets purchased for this purpose and any carbon emission credits associated with sequestration of carbon from the facility must be permanently retired. The initial clean coal facility shall not forfeit its designation as a clean coal facility if the facility fails to fully comply with the applicable carbon sequestration requirements in any given year, provided the requisite offsets are purchased. However, the Attorney General, on behalf of the People of the State of Illinois, may specifically enforce the facility's sequestration requirement and the other terms of this contract provision. Compliance with the sequestration requirements and offset purchase requirements specified in paragraph (3) of this subsection (d) shall be reviewed annually by an independent expert retained by the owner of the initial clean coal facility, with the advance written approval of the Attorney General. The Commission may, in the course of the review specified in item (vii), reduce the allowable return on equity for the facility if the facility willfully fails to comply with the carbon capture and sequestration requirements set forth in this item (v);

(vi) include limits on, and accordingly provide for modification of, the amount the utility is required to source under the sourcing agreement consistent with paragraph (2) of this subsection (d);

(vii) require Commission review: (1) to determine the justness, reasonableness, and prudence of the inputs to the formula referenced in subparagraphs (A)(i) through (A)(iii) of paragraph (3) of this subsection (d), prior to an adjustment in those inputs including, without limitation, the capital structure and return on equity, fuel costs, and other operations and maintenance costs and (2) to approve the costs to be passed through to customers under the sourcing agreement by which the utility satisfies its statutory obligations. Commission review shall occur no less than every 3 years, regardless of whether any adjustments have been proposed, and shall be completed within 9 months;

(viii) limit the utility's obligation to such amount as the utility is allowed to recover through tariffs filed with the Commission, provided that neither the clean coal facility nor the utility waives any right to assert federal preemption pre-emption or any other argument in response to a purported disallowance of recovery costs;

(ix) limit the utility's or alternative retail electric supplier's obligation to incur any liability until such time as the facility is in commercial operation and generating power and energy and such power and energy is being delivered to the facility busbar;

(x) provide that the owner or owners of the initial clean coal facility, which is the counterparty to such sourcing agreement, shall have the right from time to time to elect whether the obligations of the utility party thereto shall be governed by the power purchase provisions or the contract for differences provisions;

(xi) append documentation showing that the formula rate and contract, insofar as they relate to the power purchase provisions, have been approved by the Federal Energy Regulatory Commission pursuant to Section 205 of the Federal Power Act;

(xii) provide that any changes to the terms of the contract, insofar as such changes relate to the power purchase provisions, are subject to review under the public interest standard applied by the Federal Energy Regulatory Commission pursuant to Sections 205 and 206 of the Federal Power Act; and

(xiii) conform with customary lender requirements in power purchase agreements used as the basis for financing non-utility generators.

(4) Effective date of sourcing agreements with the initial clean coal facility. Any proposed sourcing agreement with the initial clean coal facility shall not become effective unless the following reports are prepared and submitted and authorizations and approvals obtained:

(i) Facility cost report. The owner of the initial clean coal facility shall submit to the Commission, the Agency, and the General Assembly a front-end engineering and design study, a facility cost report, method of financing (including but not limited to structure and associated costs), and an operating and maintenance cost quote for the facility (collectively "facility cost report"), which shall be prepared in accordance with the requirements of this paragraph (4) of subsection (d) of this Section, and shall provide the Commission and the Agency access to the work papers, relied upon documents, and any other backup documentation related to the facility cost report.

(ii) Commission report. Within 6 months following receipt of the facility cost report, the Commission, in consultation with the Agency, shall submit a report to the General Assembly setting forth its analysis of the facility cost report. Such report shall include, but not be limited to, a comparison of the costs associated with electricity generated by the initial clean coal facility to the costs associated with electricity generated by other types of generation facilities, an analysis of the rate impacts on residential and small business customers over the life of the sourcing agreements, and an analysis of the likelihood that the initial clean coal facility will commence commercial operation by and be delivering power to the facility's busbar by 2016. To assist in the preparation of its report, the Commission, in consultation with the Agency, may hire one or more experts or consultants, the costs of which shall be paid for by the owner of the initial clean coal facility. The Commission and Agency may begin the process of selecting such experts or consultants prior to receipt of the facility cost report.

(iii) General Assembly approval. The proposed sourcing agreements shall not take effect unless, based on the facility cost report and the Commission's report, the General Assembly enacts authorizing legislation approving (A) the projected price, stated in cents per kilowatthour, to be charged for electricity generated by the initial clean coal facility, (B) the projected impact on residential and small business customers' bills over the life of the sourcing agreements, and (C) the maximum allowable return on equity for the project; and

(iv) Commission review. If the General Assembly enacts authorizing legislation pursuant to subparagraph (iii) approving a sourcing agreement, the Commission shall, within 90 days of such enactment, complete a review of such sourcing agreement. During such time period, the Commission shall implement any directive of the General Assembly, resolve any disputes between the parties to the sourcing agreement concerning the terms of such agreement, approve the form of such agreement, and issue an order finding that the sourcing agreement is prudent and reasonable.

The facility cost report shall be prepared as follows:

(A) The facility cost report shall be prepared by duly licensed engineering and construction firms detailing the estimated capital costs payable to one or more contractors or suppliers for the engineering, procurement and construction of the components comprising the initial clean coal facility and the estimated costs of operation and maintenance of the facility. The facility cost report shall include:

(i) an estimate of the capital cost of the core plant based on one or more front end engineering and design studies for the gasification island and related facilities. The core plant shall include all civil, structural, mechanical, electrical, control, and safety systems.

(ii) an estimate of the capital cost of the balance of the plant, including any capital costs associated with sequestration of carbon dioxide emissions and all interconnects and interfaces required to operate the facility, such as transmission of electricity, construction or backfeed power supply, pipelines to transport substitute natural gas or carbon dioxide, potable water supply, natural gas supply, water supply, water discharge, landfill, access roads, and coal delivery.

The quoted construction costs shall be expressed in nominal dollars as of the date that the quote is prepared and shall include capitalized financing costs during construction, taxes, insurance, and other owner's costs, and an assumed escalation in materials and labor beyond the date as of which the construction cost quote is expressed.

(B) The front end engineering and design study for the gasification island and the cost study for the balance of plant shall include sufficient design work to permit quantification of major categories of materials, commodities and labor hours, and receipt of quotes from vendors of major equipment required to construct and operate the clean coal facility.

(C) The facility cost report shall also include an operating and maintenance cost quote that will provide the estimated cost of delivered fuel, personnel, maintenance contracts, chemicals, catalysts, consumables, spares, and other fixed and variable operations and maintenance costs. The delivered fuel cost estimate will be provided by a recognized third party expert or experts in the fuel and transportation industries. The balance of the operating and maintenance cost quote, excluding delivered fuel costs, will be developed based on the inputs provided by duly licensed engineering and construction firms performing the construction cost quote, potential vendors under long-term service agreements and plant operating agreements, or recognized third party plant operator or operators.

The operating and maintenance cost quote (including the cost of the front end engineering and design study) shall be expressed in nominal dollars as of the date that the quote is prepared and shall include taxes, insurance, and other owner's costs, and an assumed escalation in materials and labor beyond the date as of which the operating and maintenance cost quote is expressed.

(D) The facility cost report shall also include an analysis of the initial clean coal facility's ability to deliver power and energy into the applicable regional transmission organization markets and an analysis of the expected capacity factor for the initial clean coal facility.

(E) Amounts paid to third parties unrelated to the owner or owners of the initial clean coal facility to prepare the core plant construction cost quote, including the front end engineering and design study, and the operating and maintenance cost quote will be reimbursed through Coal Development Bonds.

(5) Re-powering and retrofitting coal-fired power plants previously owned by Illinois utilities to qualify as clean coal facilities. During the 2009 procurement planning process and thereafter, the Agency and the Commission shall consider sourcing agreements covering electricity generated by power plants that were previously owned by Illinois utilities and that have been or will be converted into clean coal facilities, as defined by Section 1-10 of this Act. Pursuant to such procurement planning process, the owners of such facilities may propose to the Agency sourcing agreements with utilities and alternative retail electric suppliers required to comply with subsection (d) of this Section and item (5) of subsection (d) of Section 16-115 of the Public Utilities Act, covering electricity generated by such facilities. In the case of sourcing agreements that are power purchase agreements, the contract price for electricity sales shall be established on a cost of service basis. In the case of sourcing agreements that are contracts for differences, the contract price from which the reference price is subtracted shall be established on a cost of service basis. The Agency and the Commission may approve any such utility sourcing agreements that do not exceed cost-based benchmarks developed by the procurement administrator, in consultation with the Commission staff, Agency staff and the procurement monitor, subject to Commission review and approval. The Commission shall have authority to inspect all books and records associated with these clean coal facilities during the term of any such contract.

(6) Costs incurred under this subsection (d) or pursuant to a contract entered into under this subsection (d) shall be deemed prudently incurred and reasonable in amount and the electric utility shall be entitled to full cost recovery pursuant to the tariffs filed with the Commission.

(d-5) Zero emission standard.

(1) Beginning with the delivery year commencing on June 1, 2017, the Agency shall, for electric utilities that serve at least 100,000 retail customers in this State, procure contracts with zero emission facilities that are reasonably capable of generating cost-effective zero emission credits in an amount approximately equal to 16% of the actual amount of electricity delivered by each electric utility to retail customers in the State during calendar year 2014. For an electric utility serving fewer than 100,000 retail customers in this State that requested, under Section 16-111.5 of the Public Utilities Act, that the Agency procure power and energy for all or a portion of the utility's Illinois load for the delivery year commencing June 1, 2016, the Agency shall procure contracts with zero emission facilities that are reasonably capable of generating cost-effective zero emission credits in an amount approximately equal to 16% of the portion of power and energy to be procured by the Agency for the utility. The duration of the contracts procured under this subsection (d-5) shall be for a term of 10 years ending May 31, 2027. The quantity of zero emission credits to be procured under the contracts shall be all of the zero emission credits generated by the zero emission facility in each delivery year; however, if the zero emission facility is owned by more than one entity, then the quantity of zero emission credits to be procured under the contracts shall be the amount of zero emission credits that are generated from the portion of the zero emission facility that is owned by the winning supplier.

The 16% value identified in this paragraph (1) is the average of the percentage targets in subparagraph (B) of paragraph (1) of subsection (c) of this Section for the 5 delivery years beginning June 1, 2017.

The procurement process shall be subject to the following provisions:

(A) Those zero emission facilities that intend to participate in the procurement shall submit to the Agency the following eligibility information for each zero emission facility on or before the date established by the Agency:

(i) the in-service date and remaining useful life of the zero emission facility;

(ii) the amount of power generated annually for each of the years 2005 through 2015, and the projected zero emission credits to be generated over the remaining useful life of the zero emission facility, which shall be used to determine the capability of each facility;

(iii) the annual zero emission facility cost projections, expressed on a per megawatthour basis, over the next 6 delivery years, which shall include the following: operation and maintenance expenses; fully allocated overhead costs, which shall be allocated using the methodology developed by the Institute for Nuclear Power Operations; fuel expenditures; non-fuel capital expenditures; spent fuel expenditures; a return on working capital; the cost of operational and market risks that could be avoided by ceasing operation; and any other costs necessary for continued operations, provided that "necessary" means, for purposes of this item (iii), that the costs could reasonably be avoided only by ceasing operations of the zero emission facility; and

(iv) a commitment to continue operating, for the duration of the contract or contracts executed under the procurement held under this subsection (d-5), the zero emission facility that produces the zero emission credits to be procured in the procurement.

The information described in item (iii) of this subparagraph (A) may be submitted on a confidential basis and shall be treated and maintained by the Agency, the procurement administrator, and the Commission as confidential and proprietary and exempt from disclosure under subparagraphs (a) and (g) of paragraph (1) of Section 7 of the Freedom of Information Act. The Office of Attorney General shall have access to, and maintain the confidentiality of, such information pursuant to Section 6.5 of the Attorney General Act.

(B) The price for each zero emission credit procured under this subsection (d-5) for each delivery year shall be in an amount that equals the Social Cost of Carbon, expressed on a price per megawatthour basis. However, to ensure that the procurement remains affordable to retail customers in this State if electricity prices increase, the price in an applicable delivery year shall be reduced below the Social Cost of Carbon by the amount ("Price Adjustment") by which the market price index for the applicable delivery year exceeds the baseline market price index for the consecutive 12-month period ending May 31, 2016. If the Price Adjustment is greater than or equal to the Social Cost of Carbon in an applicable delivery year, then no payments shall be due in that delivery year. The components of this calculation are defined as follows:

(i) Social Cost of Carbon: The Social Cost of Carbon is $16.50 per megawatthour, which is based on the U.S. Interagency Working Group on Social Cost of Carbon's price in the August 2016 Technical Update using a 3% discount rate, adjusted for inflation for each year of the program. Beginning with the delivery year commencing June 1, 2023, the price per megawatthour shall increase by $1 per megawatthour, and continue to increase by an additional $1 per megawatthour each delivery year thereafter.

(ii) Baseline market price index: The baseline market price index for the consecutive 12-month period ending May 31, 2016 is $31.40 per megawatthour, which is based on the sum of (aa) the average day-ahead energy price across all hours of such 12-month period at the PJM Interconnection LLC Northern Illinois Hub, (bb) 50% multiplied by the Base Residual Auction, or its successor, capacity price for the rest of the RTO zone group determined by PJM Interconnection LLC, divided by 24 hours per day, and (cc) 50% multiplied by the Planning Resource Auction, or its successor, capacity price for Zone 4 determined by the Midcontinent Independent System Operator, Inc., divided by 24 hours per day.

(iii) Market price index: The market price index for a delivery year shall be the sum of projected energy prices and projected capacity prices determined as follows:

(aa) Projected energy prices: the projected energy prices for the applicable delivery year shall be calculated once for the year using the forward market price for the PJM Interconnection, LLC Northern Illinois Hub. The forward market price shall be calculated as follows: the energy forward prices for each month of the applicable delivery year averaged for each trade date during the calendar year immediately preceding that delivery year to produce a single energy forward price for the delivery year. The forward market price calculation shall use data published by the Intercontinental Exchange, or its successor.

(bb) Projected capacity prices:

(I) For the delivery years commencing June 1, 2017, June 1, 2018, and June 1, 2019, the projected capacity price shall be equal to the sum of (1) 50% multiplied by the Base Residual Auction, or its successor, price for the rest of the RTO zone group as determined by PJM Interconnection LLC, divided by 24 hours per day and, (2) 50% multiplied by the resource auction price determined in the resource auction administered by the Midcontinent Independent System Operator, Inc., in which the largest percentage of load cleared for Local Resource Zone 4, divided by 24 hours per day, and where such price is determined by the Midcontinent Independent System Operator, Inc.

(II) For the delivery year commencing June 1, 2020, and each year thereafter, the projected capacity price shall be equal to the sum of (1) 50% multiplied by the Base Residual Auction, or its successor, price for the ComEd zone as determined by PJM Interconnection LLC, divided by 24 hours per day, and (2) 50% multiplied by the resource auction price determined in the resource auction administered by the Midcontinent Independent System Operator, Inc., in which the largest percentage of load cleared for Local Resource Zone 4, divided by 24 hours per day, and where such price is determined by the Midcontinent Independent System Operator, Inc.

For purposes of this subsection (d-5):

"Rest of the RTO" and "ComEd Zone" shall have the meaning ascribed to them by PJM Interconnection, LLC.

"RTO" means regional transmission organization.

(C) No later than 45 days after June 1, 2017 (the effective date of Public Act 99-906), the Agency shall publish its proposed zero emission standard procurement plan. The plan shall be consistent with the provisions of this paragraph (1) and shall provide that winning bids shall be selected based on public interest criteria that include, but are not limited to, minimizing carbon dioxide emissions that result from electricity consumed in Illinois and minimizing sulfur dioxide, nitrogen oxide, and particulate matter emissions that adversely affect the citizens of this State. In particular, the selection of winning bids shall take into account the incremental environmental benefits resulting from the procurement, such as any existing environmental benefits that are preserved by the procurements held under Public Act 99-906 and would cease to exist if the procurements were not held, including the preservation of zero emission facilities. The plan shall also describe in detail how each public interest factor shall be considered and weighted in the bid selection process to ensure that the public interest criteria are applied to the procurement and given full effect.

For purposes of developing the plan, the Agency shall consider any reports issued by a State agency, board, or commission under House Resolution 1146 of the 98th General Assembly and paragraph (4) of subsection (d) of this Section, as well as publicly available analyses and studies performed by or for regional transmission organizations that serve the State and their independent market monitors.

Upon publishing of the zero emission standard procurement plan, copies of the plan shall be posted and made publicly available on the Agency's website. All interested parties shall have 10 days following the date of posting to provide comment to the Agency on the plan. All comments shall be posted to the Agency's website. Following the end of the comment period, but no more than 60 days later than June 1, 2017 (the effective date of Public Act 99-906), the Agency shall revise the plan as necessary based on the comments received and file its zero emission standard procurement plan with the Commission.

If the Commission determines that the plan will result in the procurement of cost-effective zero emission credits, then the Commission shall, after notice and hearing, but no later than 45 days after the Agency filed the plan, approve the plan or approve with modification. For purposes of this subsection (d-5), "cost-effective" "cost effective" means the projected costs of procuring zero emission credits from zero emission facilities do not cause the limit stated in paragraph (2) of this subsection to be exceeded.

(C-5) As part of the Commission's review and acceptance or rejection of the procurement results, the Commission shall, in its public notice of successful bidders:

(i) identify how the winning bids satisfy the public interest criteria described in subparagraph (C) of this paragraph (1) of minimizing carbon dioxide emissions that result from electricity consumed in Illinois and minimizing sulfur dioxide, nitrogen oxide, and particulate matter emissions that adversely affect the citizens of this State;

(ii) specifically address how the selection of winning bids takes into account the incremental environmental benefits resulting from the procurement, including any existing environmental benefits that are preserved by the procurements held under Public Act 99-906 and would have ceased to exist if the procurements had not been held, such as the preservation of zero emission facilities;

(iii) quantify the environmental benefit of preserving the resources identified in item (ii) of this subparagraph (C-5), including the following:

(aa) the value of avoided greenhouse gas emissions measured as the product of the zero emission facilities' output over the contract term multiplied by the U.S. Environmental Protection Agency eGrid subregion carbon dioxide emission rate and the U.S. Interagency Working Group on Social Cost of Carbon's price in the August 2016 Technical Update using a 3% discount rate, adjusted for inflation for each delivery year; and

(bb) the costs of replacement with other zero carbon dioxide resources, including wind and photovoltaic, based upon the simple average of the following:

(I) the price, or if there is more than one price, the average of the prices, paid for renewable energy credits from new utility-scale wind projects in the procurement events specified in item (i) of subparagraph (G) of paragraph (1) of subsection (c) of this Section; and

(II) the price, or if there is more than one price, the average of the prices, paid for renewable energy credits from new utility-scale solar projects and brownfield site photovoltaic projects in the procurement events specified in item (ii) of subparagraph (G) of paragraph (1) of subsection (c) of this Section and, after January 1, 2015, renewable energy credits from photovoltaic distributed generation projects in procurement events held under subsection (c) of this Section.

Each utility shall enter into binding contractual arrangements with the winning suppliers.

The procurement described in this subsection (d-5), including, but not limited to, the execution of all contracts procured, shall be completed no later than May 10, 2017. Based on the effective date of Public Act 99-906, the Agency and Commission may, as appropriate, modify the various dates and timelines under this subparagraph and subparagraphs (C) and (D) of this paragraph (1). The procurement and plan approval processes required by this subsection (d-5) shall be conducted in conjunction with the procurement and plan approval processes required by subsection (c) of this Section and Section 16-111.5 of the Public Utilities Act, to the extent practicable. Notwithstanding whether a procurement event is conducted under Section 16-111.5 of the Public Utilities Act, the Agency shall immediately initiate a procurement process on June 1, 2017 (the effective date of Public Act 99-906).

(D) Following the procurement event described in this paragraph (1) and consistent with subparagraph (B) of this paragraph (1), the Agency shall calculate the payments to be made under each contract for the next delivery year based on the market price index for that delivery year. The Agency shall publish the payment calculations no later than May 25, 2017 and every May 25 thereafter.

(E) Notwithstanding the requirements of this subsection (d-5), the contracts executed under this subsection (d-5) shall provide that the zero emission facility may, as applicable, suspend or terminate performance under the contracts in the following instances:

(i) A zero emission facility shall be excused from its performance under the contract for any cause beyond the control of the resource, including, but not restricted to, acts of God, flood, drought, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, acts of public enemy, explosions, orders, regulations or restrictions imposed by governmental, military, or lawfully established civilian authorities, which, in any of the foregoing cases, by exercise of commercially reasonable efforts the zero emission facility could not reasonably have been expected to avoid, and which, by the exercise of commercially reasonable efforts, it has been unable to overcome. In such event, the zero emission facility shall be excused from performance for the duration of the event, including, but not limited to, delivery of zero emission credits, and no payment shall be due to the zero emission facility during the duration of the event.

(ii) A zero emission facility shall be permitted to terminate the contract if legislation is enacted into law by the General Assembly that imposes or authorizes a new tax, special assessment, or fee on the generation of electricity, the ownership or leasehold of a generating unit, or the privilege or occupation of such generation, ownership, or leasehold of generation units by a zero emission facility. However, the provisions of this item (ii) do not apply to any generally applicable tax, special assessment or fee, or requirements imposed by federal law.

(iii) A zero emission facility shall be permitted to terminate the contract in the event that the resource requires capital expenditures in excess of $40,000,000 that were neither known nor reasonably foreseeable at the time it executed the contract and that a prudent owner or operator of such resource would not undertake.

(iv) A zero emission facility shall be permitted to terminate the contract in the event the Nuclear Regulatory Commission terminates the resource's license.

(F) If the zero emission facility elects to terminate a contract under subparagraph (E) of this paragraph (1), then the Commission shall reopen the docket in which the Commission approved the zero emission standard procurement plan under subparagraph (C) of this paragraph (1) and, after notice and hearing, enter an order acknowledging the contract termination election if such termination is consistent with the provisions of this subsection (d-5).

(2) For purposes of this subsection (d-5), the amount paid per kilowatthour means the total amount paid for electric service expressed on a per kilowatthour basis. For purposes of this subsection (d-5), the total amount paid for electric service includes, without limitation, amounts paid for supply, transmission, distribution, surcharges, and add-on taxes.

Notwithstanding the requirements of this subsection (d-5), the contracts executed under this subsection (d-5) shall provide that the total of zero emission credits procured under a procurement plan shall be subject to the limitations of this paragraph (2). For each delivery year, the contractual volume receiving payments in such year shall be reduced for all retail customers based on the amount necessary to limit the net increase that delivery year to the costs of those credits included in the amounts paid by eligible retail customers in connection with electric service to no more than 1.65% of the amount paid per kilowatthour by eligible retail customers during the year ending May 31, 2009. The result of this computation shall apply to and reduce the procurement for all retail customers, and all those customers shall pay the same single, uniform cents per kilowatthour charge under subsection (k) of Section 16-108 of the Public Utilities Act. To arrive at a maximum dollar amount of zero emission credits to be paid for the particular delivery year, the resulting per kilowatthour amount shall be applied to the actual amount of kilowatthours of electricity delivered by the electric utility in the delivery year immediately prior to the procurement, to all retail customers in its service territory. Unpaid contractual volume for any delivery year shall be paid in any subsequent delivery year in which such payments can be made without exceeding the amount specified in this paragraph (2). The calculations required by this paragraph (2) shall be made only once for each procurement plan year. Once the determination as to the amount of zero emission credits to be paid is made based on the calculations set forth in this paragraph (2), no subsequent rate impact determinations shall be made and no adjustments to those contract amounts shall be allowed. All costs incurred under those contracts and in implementing this subsection (d-5) shall be recovered by the electric utility as provided in this Section.

No later than June 30, 2019, the Commission shall review the limitation on the amount of zero emission credits procured under this subsection (d-5) and report to the General Assembly its findings as to whether that limitation unduly constrains the procurement of cost-effective zero emission credits.

(3) Six years after the execution of a contract under this subsection (d-5), the Agency shall determine whether the actual zero emission credit payments received by the supplier over the 6-year period exceed the Average ZEC Payment. In addition, at the end of the term of a contract executed under this subsection (d-5), or at the time, if any, a zero emission facility's contract is terminated under subparagraph (E) of paragraph (1) of this subsection (d-5), then the Agency shall determine whether the actual zero emission credit payments received by the supplier over the term of the contract exceed the Average ZEC Payment, after taking into account any amounts previously credited back to the utility under this paragraph (3). If the Agency determines that the actual zero emission credit payments received by the supplier over the relevant period exceed the Average ZEC Payment, then the supplier shall credit the difference back to the utility. The amount of the credit shall be remitted to the applicable electric utility no later than 120 days after the Agency's determination, which the utility shall reflect as a credit on its retail customer bills as soon as practicable; however, the credit remitted to the utility shall not exceed the total amount of payments received by the facility under its contract.

For purposes of this Section, the Average ZEC Payment shall be calculated by multiplying the quantity of zero emission credits delivered under the contract times the average contract price. The average contract price shall be determined by subtracting the amount calculated under subparagraph (B) of this paragraph (3) from the amount calculated under subparagraph (A) of this paragraph (3), as follows:

(A) The average of the Social Cost of Carbon, as defined in subparagraph (B) of paragraph (1) of this subsection (d-5), during the term of the contract.

(B) The average of the market price indices, as defined in subparagraph (B) of paragraph (1) of this subsection (d-5), during the term of the contract, minus the baseline market price index, as defined in subparagraph (B) of paragraph (1) of this subsection (d-5).

If the subtraction yields a negative number, then the Average ZEC Payment shall be zero.

(4) Cost-effective zero emission credits procured from zero emission facilities shall satisfy the applicable definitions set forth in Section 1-10 of this Act.

(5) The electric utility shall retire all zero emission credits used to comply with the requirements of this subsection (d-5).

(6) Electric utilities shall be entitled to recover all of the costs associated with the procurement of zero emission credits through an automatic adjustment clause tariff in accordance with subsection (k) and (m) of Section 16-108 of the Public Utilities Act, and the contracts executed under this subsection (d-5) shall provide that the utilities' payment obligations under such contracts shall be reduced if an adjustment is required under subsection (m) of Section 16-108 of the Public Utilities Act.

(7) This subsection (d-5) shall become inoperative on January 1, 2028.

(d-9) Findings related to changes made by this amendatory Act of the 102nd General Assembly.

(1) Findings. The General Assembly finds that:

(A) the health, welfare, and prosperity of all Illinois citizens require that the State of Illinois act to avoid and not increase carbon emissions from electric generation sources while continuing to ensure affordable, stable, and reliable electricity to all citizens;

(B) climate changes threaten all of Illinois' residents and communities, due to effects ranging from more frequent flooding to rising temperatures and increasingly severe weather;

(C) in light of those challenges, the State must transition to a clean energy future and put itself on a path toward 100% clean energy by 2030;

(D) in furtherance of this target, it is also a goal of the State that 100% of the capacity procured for retail customers shall be sourced from clean energy resources by 2035;

(E) to ensure that Illinois' clean energy investments are designed to achieve the State's clean energy goals while maximizing the environmental and health benefits to Illinoisans, it is critical that the State procure clean energy attributes from clean energy resources capable of producing clean energy at times of day that correspond to the pattern of retail electric consumption; otherwise, production by clean energy resources will not replace production by fossil generation, contrary to Illinois' environmental goals;

(F) Illinois' clean energy goals, plans, and procurements must account for the differences between the northern and southern regions of the State, including, but not limited to, geography, population density, patterns of electric usage, and the mix of generation resources in the respective regions;

(G) no regional or nationwide program currently imposes a carbon price on all electricity consumed by Illinois's retail electric customers, resulting in economic incentives that are inadequate to preserve existing clean energy resources or construct new clean energy resources on the scale that is required for the State to meet its climate change and environmental goals in either region of the State;

(H) a State level carbon price is worthy of further study but its efficacy may be limited;

(I) although a regional or nationwide carbon pricing regime may be enacted in the future, the urgency of the clean energy and carbon emissions challenge requires action now to recognize the carbon mitigation value that existing and new clean energy resources provide to the State;

(J) existing zero emission facilities are among the most reliable sources of clean energy and, because they do not depend on intermittent weather conditions to produce, these facilities can reliably generate carbon-free electricity during all hours of the day, resulting in a close correspondence with the pattern of retail electric consumption;

(K) existing clean energy resources currently provide the northern region of the State the ability to achieve greater than a 90% match between customer load and clean generation on an hourly basis;

(L) absent immediate action by the State to preserve existing clean energy resources, those resources may retire, new clean energy resources may not be built, and the electric generation needs of Illinois' retail customers may be met instead by facilities that emit significant amounts of carbon pollution and other harmful air pollutants at a high social and economic cost;

(M) these outcomes would create a significant and imminent risk that the State will materially regress from its current ability to achieve greater than a 90% match between customer load and clean generation, and further halt any progress toward achieving the State's 100% clean energy goals by 2030;

(N) the State can avoid the health, environmental, economic risks to Illinois families and businesses that would result from inaction while still taking steps to ensure that the electric retail rates paid by Illinois customers are affordable and stable;

(O) the State has successfully balanced the objectives of environmental and climate progress with retail-rate affordability and stability in its implementation of existing clean energy and emissions avoidance programs such as the zero emission credit program and renewable portfolio standard program set forth in Section 1-75 of the Illinois Power Agency Act;

(P) the zero emission credit program is presently limited to an amount approximately equal to 16% of the power and energy to be procured by the Illinois Power Agency for electric utilities that serve at least 100,000 retail customers in this State and the renewable portfolio standard is presently limited to procuring cost-effective renewable energy resources equal to a minimum of 25% of electric utility retail load by June 1, 2025, which are inadequate in size to meet the State's present challenges;

(Q) building upon the example and success of these programs, implementing a carbon mitigation credit program is necessary in advance of any regional or national action on carbon pricing; and

(R) it is in the immediate interest of the People of the State of Illinois for the State to exercise its rights under federal and State law to preserve existing clean energy resources and encourage the development of new clean energy resources while protecting electric retail customers from future increases in retail rates and retail-rate instability that will result in the absence of State action.

(2) Policy. Consistent with its findings, the General Assembly declares that it is the policy of the State of Illinois that:

(A) the carbon emissions resulting from retail electric service in Illinois should not increase while efforts to form a regional or nationwide carbon pricing regime continue;

(B) the State should act to avoid a major setback to its climate and environmental goals that would result from the retirement of existing clean energy facilities;

(C) the State should preserve and build upon the successes of the zero emission credit program and renewable portfolio standard program set forth in Section 1-75 of the Illinois Power Agency Act;

(D) the State should encourage the continued operation of clean and zero emission electric generation resources that minimize the carbon dioxide emissions that result from electricity consumed in Illinois and minimize sulfur dioxide, nitrogen oxide, and particulate matter emissions that adversely affect the citizens of this State;

(E) the State's programs and procurements to mitigate carbon emissions, such as the carbon mitigation credit program, should prioritize the preservation of those existing clean energy resources that are most capable of reliably generating power consistently throughout all hours of the day to best match the customers' usage patterns reflected in each electric utility's load shape so that the resources that are preserved are resources that are capable of operating at the time that customers' load occurs;

(F) the retail customer protection mechanisms implemented as part of the carbon mitigation credit program should protect retail customers against retail price increases that may result from the implementation of a regional or nationwide carbon price, and should promote electric retail-rate stability, predictability, and affordability for the benefit of the State's retail customers;

(G) the State should also ensure that its carbon mitigation credit program, as well as other initiatives to reduce carbon emissions, are designed to provide retail customers with the most benefits and value at the lowest cost, which includes, but is not limited to, ensuring that generation resources receiving State support are capable of meeting customer demand reliably throughout all hours of the day;

(H) the State should require that carbon mitigation credits be cost-effective and that their cost not exceed price benchmarks for like products or the amounts paid by eligible retail customers for renewable energy resource procurements; and

(I) the carbon mitigation credit program should work in harmony with all State and federal requirements imposed on electric utilities and electric generating facilities.

(d-10)(1) In order to promote the State's transition to a clean energy economy while also mitigating the potential for retail-rate instability associated with initiating the regulation of carbon emissions, and notwithstanding any other provision of this Act or the Public Utilities Act, each electric utility that serves more than 3,000,000 retail customers in this State shall enter into contracts with clean energy resources that are procured by the Agency and approved by the Commission pursuant to this subsection (d-10). The Agency shall conduct procurement events to procure contracts with clean energy resources that are reasonably capable of generating cost-effective carbon mitigation credits in the amounts identified in this subsection (d-10). Such contracts shall also include the retail customer protections described in this subsection (d-10), including, but not limited to, those set forth in paragraphs (3), (3.5), and (8) of this subsection (d-10) to mitigate retail-rate increases that may otherwise result from the regulation of carbon emissions. The contracts shall be entered into as the result of a competitive procurement event or events, and, to the extent that any provisions of this Act or Section 16-111.5 of the Public Utilities Act do not conflict with this subsection (d-10), such provisions shall apply to the procurement event or events.

Beginning with the delivery year commencing June 1, 2022, the Agency shall seek to procure approximately 74,000,000 cost-effective carbon mitigation credits, which is needed to maintain current levels of clean energy generation and to ensure 100% clean energy by 2030.

For purposes of this Section:

"Carbon mitigation credit" means a tradable credit that represents the carbon emission reduction attributes of one megawatt-hour of energy produced from a clean energy resource.

"Clean energy resource" means renewable energy resources interconnected to PJM Interconnection, LLC, and zero emission facilities interconnected to PJM Interconnection, LLC.

(1.5) This paragraph (1.5) applies to each electric utility that serves more than 3,000,000 retail customers in the State. No later than 36 months prior to the termination date of the contract or contracts executed by such electric utility for the purchase of zero emission credits under subsection (d-5) of this Section, the Agency shall be permitted to timely conduct an additional procurement or procurements under this subsection (d-10) to procure approximately 11,600,000 carbon mitigation credits. Such procurement or procurements for carbon mitigation credits shall be subject to the requirements of this subsection (d-10) to the extent practicable, and the contracts for such carbon mitigation credits shall be designed to commence, and require delivery beginning, immediately after the termination date of the contracts executed pursuant to subsection (d-5) of this Section.

(2) Each clean energy resource that intends to participate in a procurement shall be required to demonstrate financial need, which shall be accomplished by submitting to the Agency the following information for the resource on or before the date established by the Agency:

(A) the in-service date and remaining useful life of the clean energy resource;

(B) the amount of power generated annually for each of the past 10 years, which shall be used to determine the capability of each facility;

(C) the clean energy resource's annual cost projections, expressed on a per megawatt-hour basis, over the next 4 delivery years, which shall include the following, as applicable: operation and maintenance expenses; fully allocated overhead costs, which, for clean energy resources that are zero emission facilities, shall be allocated using the methodology developed by the Institute for Nuclear Power Operations; fuel expenditures; nonfuel capital expenditures; spent fuel expenditures; a return on working capital; the cost of operational and market risks that could be avoided by ceasing operation; and any other costs necessary for continued operations, provided that "necessary" means, for purposes of this subparagraph (C), that the costs could reasonably be avoided only by ceasing operations of the clean energy resource;

(D) the clean energy resource's annual revenue projections, expressed on a per megawatt-hour basis, over the next 4 delivery years, which shall include the following categories, as applicable: energy; capacity; ancillary services; renewable energy credits; zero emission credits; and the benefits of production tax credits and investment tax credits; and

(E) a commitment to continue operating, for the duration of the contract or contracts executed under the procurement held under this subsection (d-10), the clean energy resource that is the subject of the contract, except in the event of force majeure or catastrophic equipment failure.

Eligible resources must have an in-service date no later than the date established by the Agency for the data submission required by this paragraph (2).

The information described in subparagraph (C) of this 14