102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2248

 

Introduced 2/26/2021, by Sen. Jacqueline Y. Collins

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Power Agency Act. Makes changes in provisions concerning the Illinois Solar for All Program. Provides that the Illinois Power Agency shall make every effort to ensure that small and emerging businesses, particularly those located in low-income and environmental justice communities are able to participate in the Illinois Solar for All Program. Makes changes to incentive programs provided for under the Illinois Solar for All Program. Makes changes in provisions concerning legislative declarations and findings; definitions; and general powers and duties of the Agency. Amends the Public Utilities Act. Provides that the Illinois Commerce Commission shall open an investigation to deliberate, develop, and adopt a renewable energy access plan no later than December 31, 2022. Provides that within 90 days after the effective date of the amendatory Act, the Commission shall open a proceeding to update the interconnection standards and applicable utility tariffs and establish an interconnection working group. Makes changes in provisions concerning net electricity metering; distributed generation rebate; recovery of costs associated with the provision of delivery and other services; and provisions relating to procurement. Amends the Illinois Administrative Procedure Act. Permits the Illinois Commerce Commission to adopt emergency rules. Effective immediately.


LRB102 17406 SPS 22899 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2248LRB102 17406 SPS 22899 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Findings. The General Assembly finds that:
5    (a) The growing clean energy economy in Illinois can be a
6vehicle for expanding equitable access to public health,
7safety, a cleaner environment, quality jobs, economic
8opportunity, and wealth-building, particularly in economically
9disadvantaged communities and communities of black,
10indigenous, and people of color that have had to bear the
11disproportionate burden of dirty fossil fuel pollution.
12    (b) Placing Illinois on a path to 100% renewable energy is
13vital to a clean energy future. To bring this vision to
14fruition, our energy policy must prioritize a just transition
15that incentivizes renewable development and other
16carbon-reducing policies, such as energy efficiency,
17beneficial electrification, and peak demand reduction, while
18ensuring that the benefits and opportunities of a carbon-free
19future are accessible in economically disadvantaged
20communities, environmental justice communities, and
21communities of black, indigenous, and people of color.
 
22    Section 5. The Illinois Administrative Procedure Act is
23amended by adding Section 5-45.8 as follows:
 

 

 

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1    (5 ILCS 100/5-45.8 new)
2    Sec. 5-45.8. Emergency rulemaking; Public Utilities Act.
3To provide for the expeditious and timely implementation of
4this amendatory Act of the 102nd General Assembly, emergency
5rules may be adopted in accordance with Section 5-45 by the
6Illinois Commerce Commission to implement the changes made by
7this amendatory Act of the 102nd General Assembly to the
8Public Utilities Act. The adoption of emergency rules
9authorized by Section 5-45 and this Section is deemed to be
10necessary for the public interest, safety, and welfare.
 
11    Section 10. The Illinois Power Agency Act is amended by
12changing Sections 1-5, 1-10, 1-20, 1-56, and 1-75 as follows:
 
13    (20 ILCS 3855/1-5)
14    Sec. 1-5. Legislative declarations and findings. The
15General Assembly finds and declares:
16        (1) The health, welfare, and prosperity of all
17    Illinois residents citizens require the provision of
18    adequate, reliable, affordable, efficient, and
19    environmentally sustainable electric service at the lowest
20    total cost over time, taking into account any benefits of
21    price stability.
22        (1.5) To provide the highest quality of life for the
23    residents of Illinois, and to provide for a clean and

 

 

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1    healthy environment, it is the policy of this State to
2    rapidly transition to 100% renewable energy.
3        (2) (Blank).
4        (3) (Blank).
5        (4) It is necessary to improve the process of
6    procuring electricity to serve Illinois residents, to
7    promote investment in energy efficiency and
8    demand-response measures, and to maintain and support
9    development of clean coal technologies, generation
10    resources that operate at all hours of the day and under
11    all weather conditions, zero emission facilities, and
12    renewable resources.
13        (5) Procuring a diverse electricity supply portfolio
14    will ensure the lowest total cost over time for adequate,
15    reliable, efficient, and environmentally sustainable
16    electric service.
17        (6) Including renewable resources and zero emission
18    credits from zero emission facilities in that portfolio
19    will reduce long-term direct and indirect costs to
20    consumers by decreasing environmental impacts and by
21    avoiding or delaying the need for new generation,
22    transmission, and distribution infrastructure. Developing
23    new renewable energy resources in Illinois, including
24    brownfield solar projects and community solar projects,
25    will help to diversify Illinois electricity supply, avoid
26    and reduce pollution, reduce peak demand, and enhance

 

 

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1    public health and well-being of Illinois residents.
2        (7) Developing community solar projects in Illinois
3    will help to expand access to renewable energy resources
4    to more Illinois residents.
5        (8) Developing brownfield solar projects in Illinois
6    will help return blighted or contaminated land to
7    productive use while enhancing public health and the
8    well-being of Illinois residents, including those in
9    environmental justice communities.
10        (9) Energy efficiency, demand-response measures, zero
11    emission energy, and renewable energy are resources
12    currently underused in Illinois. These resources should be
13    used, when cost effective, to reduce costs to consumers,
14    improve reliability, and improve environmental quality and
15    public health.
16        (10) The State should encourage the use of advanced
17    clean coal technologies that capture and sequester carbon
18    dioxide emissions to advance environmental protection
19    goals and to demonstrate the viability of coal and
20    coal-derived fuels in a carbon-constrained economy.
21        (11) The General Assembly enacted Public Act 96-0795
22    to reform the State's purchasing processes, recognizing
23    that government procurement is susceptible to abuse if
24    structural and procedural safeguards are not in place to
25    ensure independence, insulation, oversight, and
26    transparency.

 

 

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1        (12) The principles that underlie the procurement
2    reform legislation apply also in the context of power
3    purchasing.
4        (13) To ensure that the benefits of installing
5    renewable resources are available to all Illinois
6    residents and located across the State, subject to
7    appropriation, it is necessary for the Illinois Power
8    Agency to provide public information and educational
9    resources on how residents can benefit from the expansion
10    of renewable energy in Illinois and participate in the
11    Illinois Solar for All Program established in Section 1-56
12    of this Act, the Adjustable Block Program established in
13    Section 1-75 of this Act, the job training programs
14    established by paragraph (1) of subsection (a) of Section
15    16-108.12 of the Public Utilities Act, and the programs
16    and resources established by the Clean Jobs Workforce and
17    Contractor Equity Act.
18    The General Assembly therefore finds that it is necessary
19to create the Illinois Power Agency and that the goals and
20objectives of that Agency are to accomplish each of the
21following:
22        (A) Develop electricity procurement plans to ensure
23    adequate, reliable, affordable, efficient, and
24    environmentally sustainable electric service at the lowest
25    total cost over time, taking into account any benefits of
26    price stability, for electric utilities that on December

 

 

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1    31, 2005 provided electric service to at least 100,000
2    customers in Illinois and for small multi-jurisdictional
3    electric utilities that (i) on December 31, 2005 served
4    less than 100,000 customers in Illinois and (ii) request a
5    procurement plan for their Illinois jurisdictional load.
6    The procurement plan shall be updated on an annual basis
7    and shall include renewable energy resources and,
8    beginning with the delivery year commencing June 1, 2017,
9    zero emission credits from zero emission facilities
10    sufficient to achieve the standards specified in this Act.
11        (B) Conduct the competitive procurement processes
12    identified in this Act.
13        (C) Develop electric generation and co-generation
14    facilities that use indigenous coal or renewable
15    resources, or both, financed with bonds issued by the
16    Illinois Finance Authority.
17        (D) Supply electricity from the Agency's facilities at
18    cost to one or more of the following: municipal electric
19    systems, governmental aggregators, or rural electric
20    cooperatives in Illinois.
21        (E) Ensure that the process of power procurement is
22    conducted in an ethical and transparent fashion, immune
23    from improper influence.
24        (F) Continue to review its policies and practices to
25    determine how best to meet its mission of providing the
26    lowest cost power to the greatest number of people, at any

 

 

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1    given point in time, in accordance with applicable law.
2        (G) Operate in a structurally insulated, independent,
3    and transparent fashion so that nothing impedes the
4    Agency's mission to secure power at the best prices the
5    market will bear, provided that the Agency meets all
6    applicable legal requirements.
7        (H) Implement renewable energy procurement and
8    training programs throughout the State to diversify
9    Illinois electricity supply, improve reliability, avoid
10    and reduce pollution, reduce peak demand, and enhance
11    public health and well-being of Illinois residents,
12    including low-income residents.
13(Source: P.A. 99-906, eff. 6-1-17.)
 
14    (20 ILCS 3855/1-10)
15    Sec. 1-10. Definitions.
16    "Agency" means the Illinois Power Agency.
17    "Agency loan agreement" means any agreement pursuant to
18which the Illinois Finance Authority agrees to loan the
19proceeds of revenue bonds issued with respect to a project to
20the Agency upon terms providing for loan repayment
21installments at least sufficient to pay when due all principal
22of, interest and premium, if any, on those revenue bonds, and
23providing for maintenance, insurance, and other matters in
24respect of the project.
25    "Authority" means the Illinois Finance Authority.

 

 

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1    "Brownfield site photovoltaic project" means photovoltaics
2that are:
3        (1) interconnected to an electric utility as defined
4    in this Section, a municipal utility as defined in this
5    Section, a public utility as defined in Section 3-105 of
6    the Public Utilities Act, or an electric cooperative, as
7    defined in Section 3-119 of the Public Utilities Act; and
8        (2) located at a site that is regulated by any of the
9    following entities under the following programs:
10            (A) the United States Environmental Protection
11        Agency under the federal Comprehensive Environmental
12        Response, Compensation, and Liability Act of 1980, as
13        amended;
14            (B) the United States Environmental Protection
15        Agency under the Corrective Action Program of the
16        federal Resource Conservation and Recovery Act, as
17        amended;
18            (C) the Illinois Environmental Protection Agency
19        under the Illinois Site Remediation Program; or
20            (D) the Illinois Environmental Protection Agency
21        under the Illinois Solid Waste Program.
22    "Clean coal facility" means an electric generating
23facility that uses primarily coal as a feedstock and that
24captures and sequesters carbon dioxide emissions at the
25following levels: at least 50% of the total carbon dioxide
26emissions that the facility would otherwise emit if, at the

 

 

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1time construction commences, the facility is scheduled to
2commence operation before 2016, at least 70% of the total
3carbon dioxide emissions that the facility would otherwise
4emit if, at the time construction commences, the facility is
5scheduled to commence operation during 2016 or 2017, and at
6least 90% of the total carbon dioxide emissions that the
7facility would otherwise emit if, at the time construction
8commences, the facility is scheduled to commence operation
9after 2017. The power block of the clean coal facility shall
10not exceed allowable emission rates for sulfur dioxide,
11nitrogen oxides, carbon monoxide, particulates and mercury for
12a natural gas-fired combined-cycle facility the same size as
13and in the same location as the clean coal facility at the time
14the clean coal facility obtains an approved air permit. All
15coal used by a clean coal facility shall have high volatile
16bituminous rank and greater than 1.7 pounds of sulfur per
17million btu content, unless the clean coal facility does not
18use gasification technology and was operating as a
19conventional coal-fired electric generating facility on June
201, 2009 (the effective date of Public Act 95-1027).
21    "Clean coal SNG brownfield facility" means a facility that
22(1) has commenced construction by July 1, 2015 on an urban
23brownfield site in a municipality with at least 1,000,000
24residents; (2) uses a gasification process to produce
25substitute natural gas; (3) uses coal as at least 50% of the
26total feedstock over the term of any sourcing agreement with a

 

 

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

 

 

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1        (1) is powered by wind, solar thermal energy,
2    photovoltaic cells or panels, biodiesel, crops and
3    untreated and unadulterated organic waste biomass, tree
4    waste, and hydropower that does not involve new
5    construction or significant expansion of hydropower dams;
6        (2) is interconnected at the distribution system level
7    of an electric utility as defined in this Section, a
8    municipal utility as defined in this Section that owns or
9    operates electric distribution facilities, a public
10    utility as defined in Section 3-105 of the Public
11    Utilities Act, or an electric cooperative, as defined in
12    Section 3-119 of the Public Utilities Act;
13        (3) credits the value of electricity generated by the
14    facility to the subscribers of the facility; and
15        (4) is limited in nameplate capacity to less than or
16    equal to 5,000 2,000 kilowatts.
17    "Costs incurred in connection with the development and
18construction of a facility" means:
19        (1) the cost of acquisition of all real property,
20    fixtures, and improvements in connection therewith and
21    equipment, personal property, and other property, rights,
22    and easements acquired that are deemed necessary for the
23    operation and maintenance of the facility;
24        (2) financing costs with respect to bonds, notes, and
25    other evidences of indebtedness of the Agency;
26        (3) all origination, commitment, utilization,

 

 

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1    facility, placement, underwriting, syndication, credit
2    enhancement, and rating agency fees;
3        (4) engineering, design, procurement, consulting,
4    legal, accounting, title insurance, survey, appraisal,
5    escrow, trustee, collateral agency, interest rate hedging,
6    interest rate swap, capitalized interest, contingency, as
7    required by lenders, and other financing costs, and other
8    expenses for professional services; and
9        (5) the costs of plans, specifications, site study and
10    investigation, installation, surveys, other Agency costs
11    and estimates of costs, and other expenses necessary or
12    incidental to determining the feasibility of any project,
13    together with such other expenses as may be necessary or
14    incidental to the financing, insuring, acquisition, and
15    construction of a specific project and starting up,
16    commissioning, and placing that project in operation.
17    "Delivery services" has the same definition as found in
18Section 16-102 of the Public Utilities Act.
19    "Delivery year" means the consecutive 12-month period
20beginning June 1 of a given year and ending May 31 of the
21following year.
22    "Department" means the Department of Commerce and Economic
23Opportunity.
24    "Director" means the Director of the Illinois Power
25Agency.
26    "Demand-response" means measures that decrease peak

 

 

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1electricity demand or shift demand from peak to off-peak
2periods.
3    "Distributed renewable energy generation device" means a
4device that is:
5        (1) powered by wind, solar thermal energy,
6    photovoltaic cells or panels, biodiesel, crops and
7    untreated and unadulterated organic waste biomass, tree
8    waste, and hydropower that does not involve new
9    construction or significant expansion of hydropower dams;
10        (2) interconnected at the distribution system level of
11    either an electric utility as defined in this Section, a
12    municipal utility as defined in this Section that owns or
13    operates electric distribution facilities, or a rural
14    electric cooperative as defined in Section 3-119 of the
15    Public Utilities Act;
16        (3) located on the customer side of the customer's
17    electric meter and is primarily used to offset that
18    customer's electricity load; and
19        (4) limited in nameplate capacity to less than or
20    equal to 2,000 kilowatts.
21    "Energy efficiency" means measures that reduce the amount
22of electricity or natural gas consumed in order to achieve a
23given end use. "Energy efficiency" includes voltage
24optimization measures that optimize the voltage at points on
25the electric distribution voltage system and thereby reduce
26electricity consumption by electric customers' end use

 

 

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

 

 

SB2248- 15 -LRB102 17406 SPS 22899 b

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

 

 

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1industrial lunchroom or office waste, landscape waste other
2than tree waste, railroad crossties, utility poles, or
3construction or demolition debris, other than untreated and
4unadulterated waste wood.
5    "Retail customer" has the same definition as found in
6Section 16-102 of the Public Utilities Act.
7    "Revenue bond" means any bond, note, or other evidence of
8indebtedness issued by the Authority, the principal and
9interest of which is payable solely from revenues or income
10derived from any project or activity of the Agency.
11    "Sequester" means permanent storage of carbon dioxide by
12injecting it into a saline aquifer, a depleted gas reservoir,
13or an oil reservoir, directly or through an enhanced oil
14recovery process that may involve intermediate storage,
15regardless of whether these activities are conducted by a
16clean coal facility, a clean coal SNG facility, a clean coal
17SNG brownfield facility, or a party with which a clean coal
18facility, clean coal SNG facility, or clean coal SNG
19brownfield facility has contracted for such purposes.
20    "Service area" has the same definition as found in Section
2116-102 of the Public Utilities Act.
22    "Sourcing agreement" means (i) in the case of an electric
23utility, an agreement between the owner of a clean coal
24facility and such electric utility, which agreement shall have
25terms and conditions meeting the requirements of paragraph (3)
26of subsection (d) of Section 1-75, (ii) in the case of an

 

 

SB2248- 17 -LRB102 17406 SPS 22899 b

1alternative retail electric supplier, an agreement between the
2owner of a clean coal facility and such alternative retail
3electric supplier, which agreement shall have terms and
4conditions meeting the requirements of Section 16-115(d)(5) of
5the Public Utilities Act, and (iii) in case of a gas utility,
6an agreement between the owner of a clean coal SNG brownfield
7facility and the gas utility, which agreement shall have the
8terms and conditions meeting the requirements of subsection
9(h-1) of Section 9-220 of the Public Utilities Act.
10    "Subscriber" means a person who (i) takes delivery service
11from an electric utility, and (ii) has a subscription of no
12less than 200 watts to a community renewable generation
13project that is located in the electric utility's service
14area. No subscriber's subscriptions may total more than 40% of
15the nameplate capacity of an individual community renewable
16generation project. Entities that are affiliated by virtue of
17a common parent shall not represent multiple subscriptions
18that total more than 40% of the nameplate capacity of an
19individual community renewable generation project.
20    "Subscription" means an interest in a community renewable
21generation project expressed in kilowatts, which is sized
22primarily to offset part or all of the subscriber's
23electricity usage.
24    "Substitute natural gas" or "SNG" means a gas manufactured
25by gasification of hydrocarbon feedstock, which is
26substantially interchangeable in use and distribution with

 

 

SB2248- 18 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 19 -LRB102 17406 SPS 22899 b

1the purpose of calculating net present values, a societal
2discount rate based on actual, long-term Treasury bond yields
3should be used. Notwithstanding anything to the contrary, the
4TRC test shall not include or take into account a calculation
5of market price suppression effects or demand reduction
6induced price effects.
7    "Utility-scale solar project" means an electric generating
8facility that:
9        (1) generates electricity using photovoltaic cells;
10    and
11        (2) has a nameplate capacity that is greater than
12    2,000 kilowatts.
13    "Utility-scale wind project" means an electric generating
14facility that:
15        (1) generates electricity using wind; and
16        (2) has a nameplate capacity that is greater than
17    2,000 kilowatts.
18    "Zero emission credit" means a tradable credit that
19represents the environmental attributes of one megawatt hour
20of energy produced from a zero emission facility.
21    "Zero emission facility" means a facility that: (1) is
22fueled by nuclear power; and (2) is interconnected with PJM
23Interconnection, LLC or the Midcontinent Independent System
24Operator, Inc., or their successors.
25(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
 

 

 

SB2248- 20 -LRB102 17406 SPS 22899 b

1    (20 ILCS 3855/1-20)
2    Sec. 1-20. General powers and duties of the Agency.
3    (a) The Agency is authorized to do each of the following:
4        (1) Develop electricity procurement plans to ensure
5    adequate, reliable, affordable, efficient, and
6    environmentally sustainable electric service at the lowest
7    total cost over time, taking into account any benefits of
8    price stability, for electric utilities that on December
9    31, 2005 provided electric service to at least 100,000
10    customers in Illinois and for small multi-jurisdictional
11    electric utilities that (A) on December 31, 2005 served
12    less than 100,000 customers in Illinois and (B) request a
13    procurement plan for their Illinois jurisdictional load.
14    Except as provided in paragraph (1.5) of this subsection
15    (a), the electricity procurement plans shall be updated on
16    an annual basis and shall include electricity generated
17    from renewable resources sufficient to achieve the
18    standards specified in this Act. Beginning with the
19    delivery year commencing June 1, 2017, develop procurement
20    plans to include zero emission credits generated from zero
21    emission facilities sufficient to achieve the standards
22    specified in this Act. Beginning with the procurement for
23    the delivery year commencing June 1, 2022, the Agency
24    shall for each year develop a plan, as part of its
25    procurement plan, to conduct a procurement of capacity
26    from qualified resources needed to meet capacity

 

 

SB2248- 21 -LRB102 17406 SPS 22899 b

1    requirements of the retail customers of electric utilities
2    that serve more than 3,000,000 retail customers and are
3    located in the PJM Interconnection, subject to the open
4    access tariff and manuals of PJM Interconnection and
5    approved by the Federal Energy Regulatory Commission. The
6    capacity procurement plan shall be updated annually and
7    shall include electricity generated from renewable
8    resources sufficient to achieve the renewable portfolio
9    standards as specified in this Act.
10        (1.5) Develop a long-term renewable resources
11    procurement plan in accordance with subsection (c) of
12    Section 1-75 of this Act for renewable energy credits in
13    amounts sufficient to achieve the standards specified in
14    this Act for delivery years commencing June 1, 2017 and
15    for the programs and renewable energy credits specified in
16    Section 1-56 of this Act. Electricity procurement plans
17    for delivery years commencing after May 31, 2017, shall
18    not include procurement of renewable energy resources.
19        (2) Conduct competitive procurement processes to
20    procure the supply resources identified in the electricity
21    procurement plan, pursuant to Section 16-111.5 of the
22    Public Utilities Act, and, for the delivery year
23    commencing June 1, 2017, conduct procurement processes to
24    procure zero emission credits from zero emission
25    facilities, under subsection (d-5) of Section 1-75 of this
26    Act.

 

 

SB2248- 22 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 23 -LRB102 17406 SPS 22899 b

1        (4) To obtain and employ personnel and hire
2    consultants that are necessary to fulfill the Agency's
3    purposes, and to make expenditures for that purpose within
4    the appropriations for that purpose.
5        (5) To purchase, receive, take by grant, gift, devise,
6    bequest, or otherwise, lease, or otherwise acquire, own,
7    hold, improve, employ, use, and otherwise deal in and
8    with, real or personal property whether tangible or
9    intangible, or any interest therein, within the State.
10        (6) To acquire real or personal property, whether
11    tangible or intangible, including without limitation
12    property rights, interests in property, franchises,
13    obligations, contracts, and debt and equity securities,
14    and to do so by the exercise of the power of eminent domain
15    in accordance with Section 1-21; except that any real
16    property acquired by the exercise of the power of eminent
17    domain must be located within the State.
18        (7) To sell, convey, lease, exchange, transfer,
19    abandon, or otherwise dispose of, or mortgage, pledge, or
20    create a security interest in, any of its assets,
21    properties, or any interest therein, wherever situated.
22        (8) To purchase, take, receive, subscribe for, or
23    otherwise acquire, hold, make a tender offer for, vote,
24    employ, sell, lend, lease, exchange, transfer, or
25    otherwise dispose of, mortgage, pledge, or grant a
26    security interest in, use, and otherwise deal in and with,

 

 

SB2248- 24 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 25 -LRB102 17406 SPS 22899 b

1    Finance Authority to issue bonds whether or not the income
2    therefrom is exempt from federal taxation.
3        (13) To procure insurance against any loss in
4    connection with its properties or operations in such
5    amount or amounts and from such insurers, including the
6    federal government, as it may deem necessary or desirable,
7    and to pay any premiums therefor.
8        (14) To negotiate and enter into agreements with
9    trustees or receivers appointed by United States
10    bankruptcy courts or federal district courts or in other
11    proceedings involving adjustment of debts and authorize
12    proceedings involving adjustment of debts and authorize
13    legal counsel for the Agency to appear in any such
14    proceedings.
15        (15) To file a petition under Chapter 9 of Title 11 of
16    the United States Bankruptcy Code or take other similar
17    action for the adjustment of its debts.
18        (16) To enter into management agreements for the
19    operation of any of the property or facilities owned by
20    the Agency.
21        (17) To enter into an agreement to transfer and to
22    transfer any land, facilities, fixtures, or equipment of
23    the Agency to one or more municipal electric systems,
24    governmental aggregators, or rural electric agencies or
25    cooperatives, for such consideration and upon such terms
26    as the Agency may determine to be in the best interest of

 

 

SB2248- 26 -LRB102 17406 SPS 22899 b

1    the residents citizens of Illinois.
2        (18) To enter upon any lands and within any building
3    whenever in its judgment it may be necessary for the
4    purpose of making surveys and examinations to accomplish
5    any purpose authorized by this Act.
6        (19) To maintain an office or offices at such place or
7    places in the State as it may determine.
8        (20) To request information, and to make any inquiry,
9    investigation, survey, or study that the Agency may deem
10    necessary to enable it effectively to carry out the
11    provisions of this Act.
12        (21) To accept and expend appropriations.
13        (22) To engage in any activity or operation that is
14    incidental to and in furtherance of efficient operation to
15    accomplish the Agency's purposes, including hiring
16    employees that the Director deems essential for the
17    operations of the Agency.
18        (23) To adopt, revise, amend, and repeal rules with
19    respect to its operations, properties, and facilities as
20    may be necessary or convenient to carry out the purposes
21    of this Act, subject to the provisions of the Illinois
22    Administrative Procedure Act and Sections 1-22 and 1-35 of
23    this Act.
24        (24) To establish and collect charges and fees as
25    described in this Act.
26        (25) To conduct competitive gasification feedstock

 

 

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1    procurement processes to procure the feedstocks for the
2    clean coal SNG brownfield facility in accordance with the
3    requirements of Section 1-78 of this Act.
4        (26) To review, revise, and approve sourcing
5    agreements and mediate and resolve disputes between gas
6    utilities and the clean coal SNG brownfield facility
7    pursuant to subsection (h-1) of Section 9-220 of the
8    Public Utilities Act.
9        (27) To request, review and accept proposals, execute
10    contracts, purchase renewable energy credits and otherwise
11    dedicate funds from the Illinois Power Agency Renewable
12    Energy Resources Fund to create and carry out the
13    objectives of the Illinois Solar for All program in
14    accordance with Section 1-56 of this Act.
15(Source: P.A. 99-906, eff. 6-1-17.)
 
16    (20 ILCS 3855/1-56)
17    Sec. 1-56. Illinois Power Agency Renewable Energy
18Resources Fund; Illinois Solar for All Program.
19    (a) The Illinois Power Agency Renewable Energy Resources
20Fund is created as a special fund in the State treasury.
21    (b) The Illinois Power Agency Renewable Energy Resources
22Fund shall be administered by the Agency as described in this
23subsection (b), provided that the changes to this subsection
24(b) made by this amendatory Act of the 99th General Assembly
25shall not interfere with existing contracts under this

 

 

SB2248- 28 -LRB102 17406 SPS 22899 b

1Section.
2        (1) The Illinois Power Agency Renewable Energy
3    Resources Fund shall be used to purchase renewable energy
4    credits according to any approved procurement plan
5    developed by the Agency prior to June 1, 2017.
6        (2) The Illinois Power Agency Renewable Energy
7    Resources Fund shall also be used to create the Illinois
8    Solar for All Program, which shall include incentives for
9    low-income distributed generation and community solar
10    projects, and other associated approved expenditures. The
11    objectives of the Illinois Solar for All Program are to
12    bring photovoltaics to low-income communities in this
13    State in a manner that maximizes the development of new
14    photovoltaic generating facilities, to create a long-term,
15    low-income solar marketplace throughout this State, to
16    integrate, through interaction with stakeholders, with
17    existing energy efficiency initiatives, and to minimize
18    administrative costs. The Agency shall strive to ensure
19    that renewable energy credits procured through the
20    Illinois Solar for All Program and each of its subprograms
21    are purchased from projects across the breadth of
22    low-income and environmental justice communities in
23    Illinois, including both urban and rural communities, and
24    are neither concentrated in a few communities nor
25    excluding particular low-income or environmental justice
26    communities. The Agency shall include a description of its

 

 

SB2248- 29 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 30 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 31 -LRB102 17406 SPS 22899 b

1    (1) of such subsection (c).
2        Contracts that will be paid with funds in the Illinois
3    Power Agency Renewable Energy Resources Fund shall be
4    executed by the Agency. Contracts that will be paid with
5    funds collected by an electric utility shall be executed
6    by the electric utility.
7        Contracts under the Illinois Solar for All Program
8    shall include an approach, as set forth in the long-term
9    renewable resources procurement plans, to ensure the
10    wholesale market value of the energy is credited to
11    participating low-income customers or organizations and to
12    ensure tangible economic benefits flow directly to program
13    participants, except in the case of low-income
14    multi-family housing where the low-income customer does
15    not directly pay for energy. Priority shall be given to
16    projects that demonstrate meaningful involvement of
17    low-income community members in designing the initial
18    proposals. Acceptable proposals to implement projects must
19    demonstrate the applicant's ability to conduct initial
20    community outreach, education, and recruitment of
21    low-income participants in the community. Projects must
22    include job training opportunities if available, and shall
23    endeavor to coordinate with the job training programs
24    described in paragraph (1) of subsection (a) of Section
25    16-108.12 of the Public Utilities Act.
26        The Agency shall make every effort to ensure that

 

 

SB2248- 32 -LRB102 17406 SPS 22899 b

1    small and emerging businesses, particularly those located
2    in low-income and environmental justice communities are
3    able to participate in the Illinois Solar for All Program.
4    These efforts may include, but shall not be limited to,
5    proactive support from the program administrator,
6    different or preferred access to subprograms and
7    administrator-identified customers or grassroots
8    education provider-identified customers, and different
9    incentive levels. The Agency shall report on progress and
10    barriers to participation of small and emerging businesses
11    in the Illinois Solar for All Program at least once a year.
12    The report shall be made available on the Agency's website
13    and, in years when the Agency is updating its long-term
14    renewable resources procurement plan, included in that
15    plan.
16            (A) Low-income single-family and small multifamily
17        solar distributed generation incentive. This program
18        will provide incentives to low-income customers,
19        either directly or through solar providers, to
20        increase the participation of low-income households in
21        photovoltaic on-site distributed generation at
22        residential buildings containing one to 4 units.
23        Companies participating in this program that install
24        solar panels shall commit to hiring job trainees for a
25        portion of their low-income installations, and an
26        administrator shall facilitate partnering the

 

 

SB2248- 33 -LRB102 17406 SPS 22899 b

1        companies that install solar panels with entities that
2        provide solar panel installation job training. It is a
3        goal of this program that a minimum of 25% of the
4        incentives for this program be allocated to projects
5        located within environmental justice communities. The
6        Agency shall reserve a portion of this program for
7        projects that promote energy sovereignty through
8        ownership of projects by low-income households,
9        not-for-profit organizations providing services to
10        low-income households, affordable housing owners, or
11        community-based limited liability companies providing
12        services to low-income households. To count as
13        promoting energy sovereignty, 49% of the ownership
14        interest of the project must be held by low-income
15        households, not-for-profit organizations providing
16        direct services to low-income households, affordable
17        housing owners, or community-based limited liability
18        companies providing services to low-income households,
19        by no later than 6 years after the device is
20        interconnected at the distribution system level of the
21        utility and energized. Incentives for projects that
22        promote energy sovereignty may be higher than
23        incentives for equivalent projects that do not promote
24        energy sovereignty under this same program. Contracts
25        entered into under this paragraph may be entered into
26        with an entity that will develop and administer the

 

 

SB2248- 34 -LRB102 17406 SPS 22899 b

1        program and shall also include contracts for renewable
2        energy credits from the photovoltaic distributed
3        generation that is the subject of the program, as set
4        forth in the long-term renewable resources procurement
5        plan.
6            (B) Low-Income Community Solar Project Initiative.
7        Incentives shall be offered to low-income customers,
8        either directly or through developers, to increase the
9        participation of low-income subscribers of community
10        solar projects. The developer of each project shall
11        identify its partnership with community stakeholders
12        regarding the location, development, and participation
13        in the project, provided that nothing shall preclude a
14        project from including an anchor tenant that does not
15        qualify as low-income. Incentives should also be
16        offered to community solar projects that are 100%
17        low-income subscriber owned, which includes low-income
18        households, not-for-profit organizations, and
19        affordable housing owners. Companies participating in
20        this program that develop or install solar projects
21        shall commit to hiring job trainees for a portion of
22        their low-income installations, and an administrator
23        shall facilitate partnering the companies that install
24        solar projects with entities that provide solar
25        installation and related job training. It is a goal of
26        this program that a minimum of 25% of the incentives

 

 

SB2248- 35 -LRB102 17406 SPS 22899 b

1        for this program be allocated to community
2        photovoltaic projects in environmental justice
3        communities. The Agency shall reserve a portion of
4        this program for projects that promote energy
5        sovereignty through ownership of projects by
6        low-income households, not-for-profit organizations
7        providing services to low-income households,
8        affordable housing owners, or community-based limited
9        liability companies providing services to low-income
10        households. To count as promoting energy sovereignty,
11        49% of the ownership interest of the project must be
12        held by low-income subscribers, not-for-profit
13        organizations providing direct services to low-income
14        households, affordable housing owners, or
15        community-based limited liability companies providing
16        services to low-income households, by no later than 6
17        years after the device is interconnected at the
18        distribution system level of the utility and
19        energized. Incentives for projects that promote energy
20        sovereignty may be higher than incentives for
21        equivalent projects that do not promote energy
22        sovereignty under this same program. Contracts entered
23        into under this paragraph may be entered into with
24        developers and shall also include contracts for
25        renewable energy credits related to the program.
26            (C) Incentives for non-profits and public

 

 

SB2248- 36 -LRB102 17406 SPS 22899 b

1        facilities. Under this program funds shall be used to
2        support on-site photovoltaic distributed renewable
3        energy generation devices to serve the load associated
4        with not-for-profit customers and to support
5        photovoltaic distributed renewable energy generation
6        that uses photovoltaic technology to serve the load
7        associated with public sector customers taking service
8        at public buildings. Companies participating in this
9        program that develop or install solar projects shall
10        commit to hiring job trainees for a portion of their
11        low-income installations, and an administrator shall
12        facilitate partnering the companies that install solar
13        projects with entities that provide solar installation
14        and related job training. It is a goal of this program
15        that at least 25% of the incentives for this program be
16        allocated to projects located in environmental justice
17        communities. Contracts entered into under this
18        paragraph may be entered into with an entity that will
19        develop and administer the program or with developers
20        and shall also include contracts for renewable energy
21        credits related to the program.
22            (D) Low-Income Community Solar Pilot Projects.
23        Under this program, persons, including, but not
24        limited to, electric utilities, shall propose pilot
25        community solar projects. Community solar projects
26        proposed under this subparagraph (D) may exceed 2,000

 

 

SB2248- 37 -LRB102 17406 SPS 22899 b

1        kilowatts in nameplate capacity, but the amount paid
2        per project under this program may not exceed
3        $20,000,000. Pilot projects must result in economic
4        benefits for the members of the community in which the
5        project will be located. The proposed pilot project
6        must include a partnership with at least one
7        community-based organization. Approved pilot projects
8        shall be competitively bid by the Agency, subject to
9        fair and equitable guidelines developed by the Agency.
10        Funding available under this subparagraph (D) may not
11        be distributed solely to a utility, and at least some
12        funds under this subparagraph (D) must include a
13        project partnership that includes community ownership
14        by the project subscribers. Contracts entered into
15        under this paragraph may be entered into with an
16        entity that will develop and administer the program or
17        with developers and shall also include contracts for
18        renewable energy credits related to the program. A
19        project proposed by a utility that is implemented
20        under this subparagraph (D) shall not be included in
21        the utility's rate base ratebase.
22            (E) Low-income large multifamily solar incentive.
23        This program shall provide incentives to low-income
24        customers, either directly or through solar providers,
25        to increase the participation of low-income households
26        in photovoltaic on-site distributed generation at

 

 

SB2248- 38 -LRB102 17406 SPS 22899 b

1        residential buildings with 5 or more units. Companies
2        participating in this program that develop or install
3        solar projects shall commit to hiring job trainees for
4        a portion of their low-income installations, and an
5        administrator shall facilitate partnering the
6        companies that install solar projects with entities
7        that provide solar installation and related job
8        training. It is a goal of this program that a minimum
9        of 25% of the incentives for this program be allocated
10        to projects located within environmental justice
11        communities. The Agency shall reserve a portion of
12        this program for projects that promote energy
13        sovereignty through ownership of projects by
14        low-income households, not-for-profit organizations
15        providing services to low-income households,
16        affordable housing owners, or community-based limited
17        liability companies providing services to low-income
18        households. To count as promoting energy sovereignty,
19        49% of the ownership interest of the project must be
20        held by low-income households, not-for-profit
21        organizations providing direct services to low-income
22        households, affordable housing owners, or
23        community-based limited liability companies providing
24        services to low-income households, by no later than 6
25        years after the device is interconnected at the
26        distribution system level of the utility and

 

 

SB2248- 39 -LRB102 17406 SPS 22899 b

1        energized. Incentives for projects that promote energy
2        sovereignty may be higher than incentives for
3        equivalent projects that do not promote energy
4        sovereignty under this same program. Contracts entered
5        into under this paragraph may be entered into with an
6        entity that will develop and administer the program
7        and shall include contracts for renewable energy
8        credits from the photovoltaic distributed generation
9        that is the subject of the program, as set forth in the
10        long-term renewable resources procurement plan.
11        The requirement that a qualified person, as defined in
12    paragraph (1) of subsection (i) of this Section, install
13    photovoltaic devices does not apply to the Illinois Solar
14    for All Program described in this subsection (b).
15        (3) Costs associated with the Illinois Solar for All
16    Program and its components described in paragraph (2) of
17    this subsection (b), including, but not limited to, costs
18    associated with procuring experts, consultants, and the
19    program administrator referenced in this subsection (b)
20    and related incremental costs, costs related to income
21    verification and facilitating customer participation in
22    the program, and costs related to the evaluation of the
23    Illinois Solar for All Program, may be paid for using
24    monies in the Illinois Power Agency Renewable Energy
25    Resources Fund, but the Agency or program administrator
26    shall strive to minimize costs in the implementation of

 

 

SB2248- 40 -LRB102 17406 SPS 22899 b

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

 

 

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1    interconnected. The Agency may combine the funding for the
2    Adjustable Block Program established in subparagraph (K)
3    of paragraph (1) of subsection (c) of Section 1-75 and the
4    Illinois Solar for All Program to purchase renewable
5    energy credits from new photovoltaic projects that would
6    be eligible for either program so long as: the annual
7    ratepayer funds collected to purchase renewable resources
8    pursuant to subsection (c) of Section 1-75 is at least
9    double the amount collected in the 2019-2020 delivery
10    year, no more than 20% of any individual block within the
11    Adjustable Block Program is allocated to Solar for
12    All-eligible projects, and the funding sources for both
13    programs are the same for projects so funded. Any
14    renewable energy credits purchased from this program in
15    combination with the Adjustable Block Program shall count
16    toward the obligation for new photovoltaic projects under
17    subparagraph (C) of paragraph (1) of subsection (c) of
18    Section 1-75 of this Act. Any photovoltaic projects
19    selected for this program in combination with the
20    Adjustable Block Program are subject to the requirements
21    of the Illinois Solar for All Program and may receive
22    Illinois Solar for All Program pricing, with the Illinois
23    Solar for All Program budget covering the difference
24    between the renewable energy credit price from the
25    currently open block of the Adjustable Block Program and
26    the Solar for All renewable energy credit price. Illinois

 

 

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1    Solar for All subprograms providing funding for
2    installation of distributed renewable energy generation
3    devices shall use funding in this manner from Adjustable
4    Block Program distributed renewable energy generation
5    device blocks. The Illinois Solar for All Low-Income
6    Community Solar subprogram shall use funding in this
7    manner from the Adjustable Block Program community
8    renewable generation project blocks, if such blocks are
9    legally authorized. If no Adjustable Block Program
10    community renewable generation project block is currently
11    legally authorized and if a competitively procured
12    Community Solar Program is legally authorized under
13    Section 1-75 of this Act, then (i) a portion of the
14    utility-held renewable resources budget allocated by the
15    Agency to such competitive Community Solar Program each
16    year shall be reserved for the Solar for All Low-Income
17    Community Solar subprogram as if such budget came from an
18    Adjustable Block Program block for purposes of this
19    paragraph (3) and (ii) the average renewable energy credit
20    price of Community Solar Program selected projects from
21    the prior delivery year (or a shorter period, if a full
22    delivery year of the Community Solar Program has not been
23    completed) shall be used for allocating funding to the
24    Solar for All Low-Income Community Solar subprogram in
25    lieu of the Adjustable Block Program renewable energy
26    credit block price mentioned earlier in this paragraph

 

 

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

 

 

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

 

 

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

 

 

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1    delivered to the Commission and posted on the Agency's
2    website, and shall be used, as needed, to revise the
3    Illinois Solar for All Program. The Commission shall also
4    consider the results of the evaluation as part of its
5    review of the long-term renewable resources procurement
6    plan under subsection (c) of Section 1-75 of this Act.
7        (7) If additional funding for the programs described
8    in this subsection (b) is available under subsection (k)
9    of Section 16-108 of the Public Utilities Act, then the
10    Agency shall submit a procurement plan to the Commission
11    no later than September 1, 2018, that proposes how the
12    Agency will procure programs on behalf of the applicable
13    utility. After notice and hearing, the Commission shall
14    approve, or approve with modification, the plan no later
15    than November 1, 2018.
16        (8) As part of the development and update of the
17    long-term renewable resources procurement plan authorized
18    by subsection (c) of Section 1-75 of this Act, the Agency
19    shall plan for: (A) actions to refer customers from the
20    Illinois Solar for All Program to electric and natural gas
21    income-qualified energy efficiency programs, and vice
22    versa, with the goal of increasing participation in both
23    of these programs; (B) effective procedures for data
24    sharing, as needed, to effectuate referrals between the
25    Illinois Solar for All Program and both electric and
26    natural gas income-qualified energy efficiency programs,

 

 

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1    including sharing customer information directly with the
2    utilities, as needed and appropriate; and (C) efforts to
3    identify any existing deferred maintenance programs for
4    which prospective Solar for All customers may be eligible
5    and connect prospective customers for whom deferred
6    maintenance is or may be a barrier to solar installation
7    to those programs.
8    As used in this subsection (b), "low-income households"
9means persons and families whose income does not exceed 80% of
10area median income, adjusted for family size and revised every
115 years.
12    For the purposes of this subsection (b), the Agency shall
13define "environmental justice community" based on
14methodologies and findings established by the Illinois Power
15Agency and its Administrator for the Illinois Solar for All
16Program in its initial long-term renewable resources
17procurement plan and updated by the Illinois Power Agency and
18its Administrator for the Illinois Solar for All Program as
19part of the long-term renewable resources procurement plan
20update as part of long-term renewable resources procurement
21plan development, to ensure, to the extent practicable,
22compatibility with other agencies' definitions and may, for
23guidance, look to the definitions used by federal, state, or
24local governments.
25    (b-5) After the receipt of all payments required by
26Section 16-115D of the Public Utilities Act, no additional

 

 

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

 

 

SB2248- 49 -LRB102 17406 SPS 22899 b

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

 

 

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

 

 

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1    American Board of Certified Energy Practitioners (NABCEP)
2    Installer Certificate for Solar PV; (ii) an Underwriters
3    Laboratories (UL) PV Systems Installer Certificate; (iii)
4    an Electronics Technicians Association, International
5    (ETAI) Level 3 PV Installer Certificate; or (iv) an
6    Associate in Applied Science degree from an Illinois
7    Community College Board approved community college program
8    in renewable energy or a distributed generation
9    technology.
10        For the purposes of this paragraph (1), "directly
11    supervised" means that there is a qualified person who
12    meets the qualifications under clause (A) of this
13    paragraph (1) and who is available for supervision and
14    consultation regarding the work performed by persons under
15    clause (B) of this paragraph (1), including a final
16    inspection of the installation work that has been directly
17    supervised to ensure safety and conformity with applicable
18    codes.
19        For the purposes of this paragraph (1), "install"
20    means the major activities and actions required to
21    connect, in accordance with applicable building and
22    electrical codes, the conductors, connectors, and all
23    associated fittings, devices, power outlets, or
24    apparatuses mounted at the premises that are directly
25    involved in delivering energy to the premises' electrical
26    wiring from the photovoltaics, including, but not limited

 

 

SB2248- 52 -LRB102 17406 SPS 22899 b

1    to, to distributed photovoltaic generation.
2        The renewable energy credits procured pursuant to the
3    supplemental procurement plan shall be procured using up
4    to $30,000,000 from the Illinois Power Agency Renewable
5    Energy Resources Fund. The Agency shall not plan to use
6    funds from the Illinois Power Agency Renewable Energy
7    Resources Fund in excess of the monies on deposit in such
8    fund or projected to be deposited into such fund. The
9    supplemental procurement plan shall ensure adequate,
10    reliable, affordable, efficient, and environmentally
11    sustainable renewable energy resources (including credits)
12    at the lowest total cost over time, taking into account
13    any benefits of price stability.
14        To the extent available, 50% of the renewable energy
15    credits procured from distributed renewable energy
16    generation shall come from devices of less than 25
17    kilowatts in nameplate capacity. Procurement of renewable
18    energy credits from distributed renewable energy
19    generation devices shall be done through multi-year
20    contracts of no less than 5 years. The Agency shall create
21    credit requirements for counterparties. In order to
22    minimize the administrative burden on contracting
23    entities, the Agency shall solicit the use of third
24    parties to aggregate distributed renewable energy. These
25    third parties shall enter into and administer contracts
26    with individual distributed renewable energy generation

 

 

SB2248- 53 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 54 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 55 -LRB102 17406 SPS 22899 b

1        administering the Agency's annual procurement under
2        Section 1-75.
3            (B) Procurement monitor. The procurement monitor
4        retained by the Commission pursuant to Section
5        16-111.5 of the Public Utilities Act shall:
6                (i) monitor interactions among the procurement
7            administrator and bidders and suppliers;
8                (ii) monitor and report to the Commission on
9            the progress of the supplemental procurement
10            process;
11                (iii) provide an independent confidential
12            report to the Commission regarding the results of
13            the procurement events;
14                (iv) assess compliance with the procurement
15            plan approved by the Commission for the
16            supplemental procurement process;
17                (v) preserve the confidentiality of supplier
18            and bidding information in a manner consistent
19            with all applicable laws, rules, regulations, and
20            tariffs;
21                (vi) provide expert advice to the Commission
22            and consult with the procurement administrator
23            regarding issues related to procurement process
24            design, rules, protocols, and policy-related
25            matters;
26                (vii) consult with the procurement

 

 

SB2248- 56 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 57 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 58 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 59 -LRB102 17406 SPS 22899 b

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

 

 

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

 

 

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1    associated with the procurement monitor for the
2    supplemental procurement process.
3(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
 
4    (20 ILCS 3855/1-75)
5    Sec. 1-75. Planning and Procurement Bureau. The Planning
6and Procurement Bureau has the following duties and
7responsibilities:
8    (a) The Planning and Procurement Bureau shall each year,
9beginning in 2008, develop procurement plans and conduct
10competitive procurement processes in accordance with the
11requirements of Section 16-111.5 of the Public Utilities Act
12for the eligible retail customers of electric utilities that
13on December 31, 2005 provided electric service to at least
14100,000 customers in Illinois. Beginning with the delivery
15year commencing on June 1, 2017, the Planning and Procurement
16Bureau shall develop plans and processes for the procurement
17of zero emission credits from zero emission facilities in
18accordance with the requirements of subsection (d-5) of this
19Section. The Planning and Procurement Bureau shall also
20develop procurement plans and conduct competitive procurement
21processes in accordance with the requirements of Section
2216-111.5 of the Public Utilities Act for the eligible retail
23customers of small multi-jurisdictional electric utilities
24that (i) on December 31, 2005 served less than 100,000
25customers in Illinois and (ii) request a procurement plan for

 

 

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1their Illinois jurisdictional load. This Section shall not
2apply to a small multi-jurisdictional utility until such time
3as a small multi-jurisdictional utility requests the Agency to
4prepare a procurement plan for their Illinois jurisdictional
5load. For the purposes of this Section, the term "eligible
6retail customers" has the same definition as found in Section
716-111.5(a) of the Public Utilities Act.
8    Beginning with the plan or plans to be implemented in the
92017 delivery year, the Agency shall no longer include the
10procurement of renewable energy resources in the annual
11procurement plans required by this subsection (a), except as
12provided in subsection (q) of Section 16-111.5 of the Public
13Utilities Act and subsection (j) of this Section, and shall
14instead develop a long-term renewable resources procurement
15plan in accordance with subsection (c) of this Section and
16Section 16-111.5 of the Public Utilities Act.
17        (1) The Agency shall each year, beginning in 2008, as
18    needed, issue a request for qualifications for experts or
19    expert consulting firms to develop the procurement plans
20    in accordance with Section 16-111.5 of the Public
21    Utilities Act. In order to qualify an expert or expert
22    consulting firm must have:
23            (A) direct previous experience assembling
24        large-scale power supply plans or portfolios for
25        end-use customers;
26            (B) an advanced degree in economics, mathematics,

 

 

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

 

 

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

 

 

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

 

 

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1    Agency's selection, the Agency shall submit another
2    recommendation within 3 days based on the proposals
3    submitted. The Agency shall award a 5-year contract to the
4    expert or expert consulting firm so selected with
5    Commission approval.
6    (b) The experts or expert consulting firms retained by the
7Agency shall, as appropriate, prepare procurement plans, and
8conduct a competitive procurement process as prescribed in
9Section 16-111.5 of the Public Utilities Act, to ensure
10adequate, reliable, affordable, efficient, and environmentally
11sustainable electric service at the lowest total cost over
12time, taking into account any benefits of price stability, for
13eligible retail customers of electric utilities that on
14December 31, 2005 provided electric service to at least
15100,000 customers in the State of Illinois, and for eligible
16Illinois retail customers of small multi-jurisdictional
17electric utilities that (i) on December 31, 2005 served less
18than 100,000 customers in Illinois and (ii) request a
19procurement plan for their Illinois jurisdictional load.
20    (c) Renewable portfolio standard.
21        (1)(A) The Agency shall develop a long-term renewable
22    resources procurement plan that shall include procurement
23    programs and competitive procurement events necessary to
24    meet the goals set forth in this subsection (c). The
25    initial long-term renewable resources procurement plan
26    shall be released for comment no later than 160 days after

 

 

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1    June 1, 2017 (the effective date of Public Act 99-906).
2    The Agency shall review, and may revise on an expedited
3    basis, the long-term renewable resources procurement plan
4    at least every 2 years, which shall be conducted in
5    conjunction with the procurement plan under Section
6    16-111.5 of the Public Utilities Act to the extent
7    practicable to minimize administrative expense. No later
8    than 90 days after the effective date of this amendatory
9    Act of the 102nd General Assembly, the Agency shall
10    release for comment a revision to the long-term renewable
11    resources procurement plan, updating only elements of the
12    most recently approved plan as needed to comply with this
13    amendatory Act of the 102nd General Assembly. The
14    long-term renewable resources procurement plans shall be
15    subject to review and approval by the Commission under
16    Section 16-111.5 of the Public Utilities Act.
17        (B) Subject to subparagraph (F) of this paragraph (1),
18    the long-term renewable resources procurement plan shall
19    include the goals for procurement of renewable energy
20    credits to meet at least the following overall
21    percentages: 13% by the 2017 delivery year; increasing by
22    at least 1.5% each delivery year thereafter to at least
23    25% by the 2025 delivery year; increasing by at least 4%
24    each delivery year after the 2025 delivery year to at
25    least 45% by 2030; increasing by at least 3% each delivery
26    year after the 2030 delivery year to at least 60% by 2035,

 

 

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1    75% by 2040, and 90% by 2045; increasing by at least 2%
2    each delivery year after the 2045 delivery year to 100% by
3    the 2050 delivery year and continuing at 100% no less than
4    25% for each delivery year thereafter. In the event of a
5    conflict between these goals and the new wind and new
6    photovoltaic procurement requirements described in items
7    (i) through (iii) of subparagraph (C) of this paragraph
8    (1), the long-term plan shall prioritize compliance with
9    the new wind and new photovoltaic procurement requirements
10    described in items (i) through (iii) of subparagraph (C)
11    of this paragraph (1) over the annual percentage targets
12    described in this subparagraph (B). The Agency shall not
13    comply with the annual percentage targets described in
14    this subparagraph (B) by procuring renewable energy
15    credits on the spot market that are unlikely to lead to the
16    development of new renewable resources.
17        For the delivery year beginning June 1, 2017, the
18    procurement plan shall include cost-effective renewable
19    energy resources equal to at least 13% of each utility's
20    load for eligible retail customers and 13% of the
21    applicable portion of each utility's load for retail
22    customers who are not eligible retail customers, which
23    applicable portion shall equal 50% of the utility's load
24    for retail customers who are not eligible retail customers
25    on February 28, 2017.
26        For the delivery year beginning June 1, 2018, the

 

 

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

 

 

SB2248- 70 -LRB102 17406 SPS 22899 b

1        (C) Of the renewable energy credits procured under
2    this subsection (c), at least 75% shall come from wind and
3    photovoltaic projects. The long-term renewable resources
4    procurement plan described in subparagraph (A) of this
5    paragraph (1) shall include the procurement of renewable
6    energy credits in amounts equal to at least the following:
7            at least 5,000,000 renewable energy credits from
8        new wind and new photovoltaic projects for each
9        delivery year by the end of the delivery year
10        beginning June 1, 2020, unless the project has delays
11        in the establishment of an operating interconnection
12        with the applicable transmission or distribution
13        system as a result of the actions or inactions of the
14        transmission or distribution provider, or other causes
15        for force majeure as outlined in the procurement
16        contract, in which case, not later than June 1, 2022;
17            at least 13,000,000 renewable energy credits from
18        new wind and new photovoltaic projects for each
19        delivery year by the end of the delivery year
20        beginning June 1, 2021;
21            at least 18,000,000 renewable energy credits from
22        new wind and new photovoltaic projects for each
23        delivery year by the end of the delivery year
24        beginning June 1, 2022;
25            at least 23,000,000 renewable energy credits from
26        new wind and new photovoltaic projects for each

 

 

SB2248- 71 -LRB102 17406 SPS 22899 b

1        delivery year by the end of the delivery year
2        beginning June 1, 2023;
3            at least 28,000,000 renewable energy credits from
4        new wind and new photovoltaic projects for each
5        delivery year by the end of the delivery year
6        beginning June 1, 2024;
7            at least 33,000,000 renewable energy credits from
8        new wind and new photovoltaic projects for each
9        delivery year by the end of the delivery year
10        beginning June 1, 2025;
11            at least 38,000,000 renewable energy credits from
12        new wind and new photovoltaic projects for each
13        delivery year by the end of the delivery year
14        beginning June 1, 2026;
15            at least 43,000,000 renewable energy credits from
16        new wind and new photovoltaic projects for each
17        delivery year by the end of the delivery year
18        beginning June 1, 2027;
19            at least 48,000,000 renewable energy credits from
20        new wind and new photovoltaic projects for each
21        delivery year by the end of the delivery year
22        beginning June 1, 2028;
23            at least 53,000,000 renewable energy credits from
24        new wind and new photovoltaic projects for each
25        delivery year by the end of the delivery year
26        beginning June 1, 2029; and

 

 

SB2248- 72 -LRB102 17406 SPS 22899 b

1            at least 58,000,000 renewable energy credits from
2        new wind and new photovoltaic projects for each
3        delivery year by the end of the delivery year
4        beginning June 1, 2030.
5            (i) By the end of the 2020 delivery year:
6                At least 2,000,000 renewable energy credits
7            for each delivery year shall come from new wind
8            projects; and
9                Of the renewable energy credits procured from
10            new wind and new photovoltaic projects for each
11            delivery year At least 2,000,000 renewable energy
12            credits for each delivery year shall come from new
13            photovoltaic projects; of that amount, to the
14            extent possible, the Agency shall procure 50% from
15            new wind projects and 50% from new photovoltaic
16            projects. Of the amount to be procured from new
17            photovoltaic projects, the Agency shall procure,
18            to the extent reasonably practicable: at least 33%
19            50% from distributed and community solar
20            photovoltaic projects using the programs program
21            outlined in subparagraphs subparagraph (K) and (N)
22            of this paragraph (1) through the 2021 delivery
23            year, increasing ratably beginning in the 2022
24            delivery year to at least 50% by the 2038 delivery
25            year and for each delivery year thereafter from
26            distributed renewable energy generation devices or

 

 

SB2248- 73 -LRB102 17406 SPS 22899 b

1            community renewable generation projects; at least
2            40% from utility-scale solar projects; at least 7%
3            2% from brownfield site photovoltaic projects that
4            are not community renewable generation projects;
5            and the remainder shall be determined through the
6            long-term planning process described in
7            subparagraph (A) of this paragraph (1).
8        In developing the long-term renewable resources
9    procurement plan, the Agency shall consider other
10    approaches, in addition to competitive procurements, that
11    can be used to procure renewable energy credits from
12    brownfield site photovoltaic projects and thereby help
13    return blighted or contaminated land to productive use
14    while enhancing public health and the well-being of
15    Illinois residents, including those in environmental
16    justice communities, as defined using existing
17    methodologies and findings used by the Illinois Power
18    Agency and its Administrator in its Illinois Solar for All
19    Program.
20        Of the amount of renewable energy credits to be
21    procured from either distributed or community solar
22    photovoltaic projects using the programs outlined in
23    subparagraph (K) of this paragraph (1), the long-term plan
24    developed through the process described in subparagraph
25    (A) of this paragraph (1) shall use the following initial
26    breakdown, which may be adjusted upon review by the Agency

 

 

SB2248- 74 -LRB102 17406 SPS 22899 b

1    and approval by the Commission:
2            (i) at least 25% from distributed renewable energy
3        generation devices with a nameplate capacity of no
4        more than 25 kilowatts;
5            (ii) at least 25% from distributed renewable
6        energy generation devices with a nameplate capacity of
7        more than 25 kilowatts and no more than 2,000
8        kilowatts;
9            (iii) at least 25% from photovoltaic community
10        renewable generation projects; and
11            (iv) the remaining 25% shall be allocated as
12        specified by the Agency in the long-term renewable
13        resources procurement plan.
14        The ratable procurement of new renewable resources
15    discussed in this subparagraph (C) shall involve annual
16    procurements of new wind and new photovoltaic projects
17    and, in the case of the Adjustable Block Program created
18    by subparagraph (K) of this paragraph (1), the annual
19    release of new blocks of capacity each year with the goal
20    of encouraging stability and steady growth in the
21    renewable resources market and avoiding boom-bust cycles.
22            (ii) By the end of the 2025 delivery year:
23                At least 3,000,000 renewable energy credits
24            for each delivery year shall come from new wind
25            projects; and
26                At least 3,000,000 renewable energy credits

 

 

SB2248- 75 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 76 -LRB102 17406 SPS 22899 b

1            projects; at least 40% from utility-scale solar
2            projects; at least 2% from brownfield site
3            photovoltaic projects that are not community
4            renewable generation projects; and the remainder
5            shall be determined through the long-term planning
6            process described in subparagraph (A) of this
7            paragraph (1).
8            For purposes of this Section:
9                "New wind projects" means wind renewable
10            energy facilities that are energized after June 1,
11            2017 for the delivery year commencing June 1, 2017
12            or within 3 years after the date the Commission
13            approves contracts for subsequent delivery years.
14                "New photovoltaic projects" means photovoltaic
15            renewable energy facilities that are energized
16            after June 1, 2017. Photovoltaic projects
17            developed under Section 1-56 of this Act shall not
18            apply towards the new photovoltaic project
19            requirements in this subparagraph (C) unless they
20            are purchased in combination with the Adjustable
21            Block Program established in subparagraph (K) of
22            this paragraph (1), as described in paragraph
23            (3.5) of subsection (b) of Section 1-56 of this
24            Act.
25        (D) Renewable energy credits shall be cost effective.
26    For purposes of this subsection (c), "cost effective"

 

 

SB2248- 77 -LRB102 17406 SPS 22899 b

1    means that the costs of procuring renewable energy
2    resources do not cause the limit stated in subparagraph
3    (E) of this paragraph (1) to be exceeded and, for
4    renewable energy credits procured through a competitive
5    procurement event, do not exceed benchmarks based on
6    market prices for like products in the region. For
7    purposes of this subsection (c), "like products" means
8    contracts for renewable energy credits from the same or
9    substantially similar technology, same or substantially
10    similar vintage (new or existing), the same or
11    substantially similar quantity, and the same or
12    substantially similar contract length and structure.
13    Benchmarks shall be developed by the procurement
14    administrator, in consultation with the Commission staff,
15    Agency staff, and the procurement monitor and shall be
16    subject to Commission review and approval. If price
17    benchmarks for like products in the region are not
18    available, the procurement administrator shall establish
19    price benchmarks based on publicly available data on
20    regional technology costs and expected current and future
21    regional energy prices. The benchmarks in this Section
22    shall not be used to curtail or otherwise reduce
23    contractual obligations entered into by or through the
24    Agency prior to June 1, 2017 (the effective date of Public
25    Act 99-906).
26        (E) For purposes of this subsection (c), the required

 

 

SB2248- 78 -LRB102 17406 SPS 22899 b

1    procurement of cost-effective renewable energy resources
2    for a particular year commencing prior to June 1, 2017
3    shall be measured as a percentage of the actual amount of
4    electricity (megawatt-hours) supplied by the electric
5    utility to eligible retail customers in the delivery year
6    ending immediately prior to the procurement, and, for
7    delivery years commencing on and after June 1, 2017, the
8    required procurement of cost-effective renewable energy
9    resources for a particular year shall be measured as a
10    percentage of the actual amount of electricity
11    (megawatt-hours) delivered by the electric utility in the
12    delivery year ending immediately prior to the procurement,
13    to all retail customers in its service territory. For
14    purposes of this subsection (c), the amount paid per
15    kilowatthour means the total amount paid for electric
16    service expressed on a per kilowatthour basis. For
17    purposes of this subsection (c), the total amount paid for
18    electric service includes without limitation amounts paid
19    for supply, transmission, distribution, surcharges, and
20    add-on taxes.
21        Notwithstanding the requirements of this subsection
22    (c), the total of renewable energy resources procured
23    under the procurement plan for any single year shall be
24    subject to the limitations of this subparagraph (E). Until
25    the delivery year beginning June 1, 2023, such Such
26    procurement shall be reduced for all retail customers

 

 

SB2248- 79 -LRB102 17406 SPS 22899 b

1    based on the amount necessary to limit the annual
2    estimated average net increase due to the costs of these
3    resources included in the amounts paid by eligible retail
4    customers in connection with electric service to no more
5    than the greater of 2.67% 2.015% of the amount paid per
6    kilowatthour by those customers during the year ending May
7    31, 2009 2007 or the incremental amount per kilowatthour
8    paid for these resources in 2011. Beginning with the
9    delivery year beginning June 1, 2023, such procurement
10    shall be reduced for all retail customers based on the
11    amount necessary to limit the annual estimated average net
12    increase due to the costs of these resources included in
13    the amounts paid by eligible retail customers in
14    connection with electric service to no more than the
15    greater of 4.88% of the amount paid per kilowatt hour by
16    those customers during the year ending May 31, 2009 or the
17    incremental amount per kilowatt hour paid for these
18    resources in 2011. To arrive at a maximum dollar amount of
19    renewable energy resources to be procured for the
20    particular delivery year, the resulting per kilowatthour
21    amount shall be applied to the actual amount of
22    kilowatthours of electricity delivered, or applicable
23    portion of such amount as specified in paragraph (1) of
24    this subsection (c), as applicable, by the electric
25    utility in the delivery year immediately prior to the
26    procurement to all retail customers in its service

 

 

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

 

 

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1        requirements described in items (i) through (iii) of
2        subparagraph (C) of this paragraph (1); and
3            (iii) renewable energy credits necessary to meet
4        the remaining requirements of this subsection (c).
5        (G) The following provisions shall apply to the
6    Agency's procurement of renewable energy credits under
7    this subsection (c):
8            (i) Notwithstanding whether a long-term renewable
9        resources procurement plan has been approved, the
10        Agency shall conduct an initial forward procurement
11        for renewable energy credits from new utility-scale
12        wind projects within 160 days after June 1, 2017 (the
13        effective date of Public Act 99-906). For the purposes
14        of this initial forward procurement, the Agency shall
15        solicit 15-year contracts for delivery of 1,000,000
16        renewable energy credits delivered annually from new
17        utility-scale wind projects to begin delivery on June
18        1, 2019, if available, but not later than June 1, 2021,
19        unless the project has delays in the establishment of
20        an operating interconnection with the applicable
21        transmission or distribution system as a result of the
22        actions or inactions of the transmission or
23        distribution provider, or other causes for force
24        majeure as outlined in the procurement contract, in
25        which case, not later than June 1, 2022. Payments to
26        suppliers of renewable energy credits shall commence

 

 

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

 

 

SB2248- 83 -LRB102 17406 SPS 22899 b

1        renewable energy credits shall commence upon delivery.
2        Renewable energy credits procured under this initial
3        procurement shall be included in the Agency's
4        long-term plan and shall apply to all renewable energy
5        goals in this subsection (c).
6            (iii) Notwithstanding whether the Commission has
7        approved the periodic long-term renewable resources
8        procurement plan revision described in Section
9        16-111.5 of the Public Utilities Act, the Agency shall
10        conduct at least one subsequent forward procurement
11        for renewable energy credits from new utility-scale
12        wind projects, new utility-scale solar, and new
13        brownfield site photovoltaic projects within 120 days
14        after the effective date of this amendatory Act of the
15        102nd General Assembly in quantities needed to meet
16        the requirements of subparagraph (C) through the
17        delivery year beginning June 1, 2021. The Agency shall
18        also release additional blocks of capacity into the
19        Adjustable Block Program, as needed to sustain the
20        market for distributed renewable energy generation
21        devices with nameplate capacities both smaller and
22        larger than 25 kilowatts through the subsequent
23        long-term renewable resources procurement plan
24        revision process, within 120 days after the effective
25        date of this amendatory Act of the 102nd General
26        Assembly notwithstanding whether the Commission has

 

 

SB2248- 84 -LRB102 17406 SPS 22899 b

1        approved the periodic long-term renewable resources
2        procurement plan revision described in Section
3        16-111.5 of the Public Utilities Act. Subsequent
4        forward procurements for utility-scale wind projects
5        shall solicit at least 1,000,000 renewable energy
6        credits delivered annually per procurement event and
7        shall be planned, scheduled, and designed such that
8        the cumulative amount of renewable energy credits
9        delivered from all new wind projects in each delivery
10        year shall not exceed the Agency's projection of the
11        cumulative amount of renewable energy credits that
12        will be delivered from all new photovoltaic projects,
13        including utility-scale and distributed photovoltaic
14        devices, in the same delivery year at the time
15        scheduled for wind contract delivery.
16            (iv) If, at any time after the time set for
17        delivery of renewable energy credits pursuant to the
18        initial procurements in items (i) and (ii) of this
19        subparagraph (G), the cumulative amount of renewable
20        energy credits projected to be delivered from all new
21        wind projects in a given delivery year exceeds the
22        cumulative amount of renewable energy credits
23        projected to be delivered from all new photovoltaic
24        projects in that delivery year by 200,000 or more
25        renewable energy credits, then the Agency shall within
26        60 days adjust the procurement programs in the

 

 

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

 

 

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

 

 

SB2248- 87 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 88 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 89 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 90 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 91 -LRB102 17406 SPS 22899 b

1    its residents based on the public interest criteria
2    described above. To ensure that the public interest
3    criteria are applied to the procurement and given full
4    effect, the Agency's long-term procurement plan shall
5    describe in detail how each public interest factor shall
6    be considered and weighted for facilities located in
7    states adjacent to Illinois.
8        (J) In order to promote the competitive development of
9    renewable energy resources in furtherance of the State's
10    interest in the health, safety, and welfare of its
11    residents, renewable energy credits shall not be eligible
12    to be counted toward the renewable energy requirements of
13    this subsection (c) if they are sourced from a generating
14    unit whose costs were being recovered through rates
15    regulated by this State or any other state or states on or
16    after January 1, 2017. Each contract executed to purchase
17    renewable energy credits under this subsection (c) shall
18    provide for the contract's termination if the costs of the
19    generating unit supplying the renewable energy credits
20    subsequently begin to be recovered through rates regulated
21    by this State or any other state or states; and each
22    contract shall further provide that, in that event, the
23    supplier of the credits must return 110% of all payments
24    received under the contract. Amounts returned under the
25    requirements of this subparagraph (J) shall be retained by
26    the utility and all of these amounts shall be used for the

 

 

SB2248- 92 -LRB102 17406 SPS 22899 b

1    procurement of additional renewable energy credits from
2    new wind or new photovoltaic resources as defined in this
3    subsection (c). The long-term plan shall provide that
4    these renewable energy credits shall be procured in the
5    next procurement event.
6        Notwithstanding the limitations of this subparagraph
7    (J), renewable energy credits sourced from generating
8    units that are constructed, purchased, owned, or leased by
9    an electric utility as part of an approved project,
10    program, or pilot under Section 1-56 of this Act shall be
11    eligible to be counted toward the renewable energy
12    requirements of this subsection (c), regardless of how the
13    costs of these units are recovered.
14        (K) The long-term renewable resources procurement plan
15    developed by the Agency in accordance with subparagraph
16    (A) of this paragraph (1) shall include an Adjustable
17    Block program for the procurement of renewable energy
18    credits from new photovoltaic projects that are
19    distributed renewable energy generation devices or new
20    photovoltaic community renewable generation projects. The
21    Adjustable Block program shall be designed to provide for
22    the steady, predictable, and sustainable growth of new
23    solar photovoltaic development in Illinois. To this end,
24    the Adjustable Block program shall provide a transparent
25    annual schedule of prices and quantities to enable the
26    photovoltaic market to scale up and for renewable energy

 

 

SB2248- 93 -LRB102 17406 SPS 22899 b

1    credit prices to adjust at a predictable rate over time.
2    The prices set by the Adjustable Block program can be
3    reflected as a set value or as the product of a formula.
4        The Adjustable Block program shall include for each
5    category of eligible projects: a schedule of standard
6    block purchase prices to be offered; a series of steps,
7    with associated nameplate capacity and purchase prices
8    that adjust from step to step; and automatic opening of
9    the next step as soon as the nameplate capacity and
10    available purchase prices for an open step are fully
11    committed or reserved. Only projects energized on or after
12    June 1, 2017 shall be eligible for the Adjustable Block
13    program. The Agency shall develop program features and
14    implementation processes that create consistent market
15    signals, making the program predictable and sustainable
16    for solar industry companies, thus allowing them to scale
17    up long-term hiring and investment activities. For each
18    block group the Agency shall determine the number of
19    blocks, the amount of generation capacity in each block,
20    and the purchase price for each block, provided that the
21    purchase price provided and the total amount of generation
22    in all blocks for all block groups shall be sufficient to
23    meet the goals in this subsection (c). The Agency shall
24    establish program eligibility requirements that ensure
25    that projects that enter the program are sufficiently
26    mature to indicate a demonstrable path to completion. The

 

 

SB2248- 94 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 95 -LRB102 17406 SPS 22899 b

1        this category to account for the differences between
2        projects for small commercial customers, large
3        commercial customers, and public or non-profit
4        customers.
5            (iii) other block groups as specified by the
6        Agency and approved by the Commission in the long-term
7        renewable resources procurement plan in order to meet
8        the goals of this subsection (c) At least 25% from
9        photovoltaic community renewable generation projects.
10            (iv) The remaining 25% shall be allocated as
11        specified by the Agency in the long-term renewable
12        resources procurement plan.
13        The Adjustable Block program shall be designed to
14    ensure that renewable energy credits are procured from
15    photovoltaic distributed renewable energy generation
16    devices and new photovoltaic community renewable energy
17    generation projects in diverse locations, including urban
18    and rural areas, and are not concentrated in a few
19    geographic areas or excluding particular geographic areas.
20        The Adjustable Block program shall reserve a total of
21    40% of each block's capacity at the block's price to be
22    available for qualified vendors that score no less than
23    105 points in the equity points system described in
24    subparagraphs (A) through (H) of paragraph (7) of this
25    subsection (c). Nothing in this paragraph shall prohibit
26    the opening of additional blocks for the unreserved

 

 

SB2248- 96 -LRB102 17406 SPS 22899 b

1    capacity of each block. Beginning with the first update to
2    the Long-Term Renewable Resources Procurement Plan after
3    December 31, 2024, the Agency shall review the reserved
4    capacity level for future blocks. In developing its annual
5    budgets, the Agency shall project the amount of
6    development in each block, at the prices of each block,
7    expected to occur in the budget timeframe.
8        Immediately upon the effective date of this amendatory
9    Act of the 102nd General Assembly, the Adjustable Block
10    Program shall stop accepting applications from community
11    renewable generation projects and shall stop allocating
12    capacity remaining in open or future blocks to community
13    renewable generation projects.
14        (L) The procurement of photovoltaic renewable energy
15    credits under the Adjustable Block Program established
16    under items (i) through (iv) of subparagraph (K) and the
17    Community Solar Program established under subparagraph (N)
18    of this paragraph (1) shall be subject to the following
19    contract and payment terms:
20            (i) The Agency shall procure contracts of at least
21        15 years in length.
22            (ii) For those renewable energy credits that
23        qualify and are procured from projects with a
24        nameplate capacity of no more than 10 kilowatts under
25        item (i) of subparagraph (K) of this paragraph (1),
26        the renewable energy credit purchase price shall be

 

 

SB2248- 97 -LRB102 17406 SPS 22899 b

1        paid in full by the contracting utilities at the time
2        that the facility producing the renewable energy
3        credits is interconnected at the distribution system
4        level of the utility and energized. The electric
5        utility shall receive and retire all renewable energy
6        credits generated by the project for the first 15
7        years of operation.
8            (iii) For those renewable energy credits that
9        qualify and are procured from projects with a
10        nameplate capacity of more than 10 kilowatts but no
11        more than 200 kilowatts or, if approved at the
12        recommendation of the Agency in its long-term plan,
13        from projects that include a community ownership
14        component or are owned by a nonprofit or public entity
15        under item (ii) and (iii) of subparagraph (K) of this
16        paragraph (1) and any additional categories of
17        distributed generation included in the long-term
18        renewable resources procurement plan and approved by
19        the Commission, 20 percent of the renewable energy
20        credit purchase price shall be paid by the contracting
21        utilities at the time that the facility producing the
22        renewable energy credits is interconnected at the
23        distribution system level of the utility and
24        energized. The remaining portion shall be paid ratably
25        over the subsequent 4-year period. The electric
26        utility shall receive and retire all renewable energy

 

 

SB2248- 98 -LRB102 17406 SPS 22899 b

1        credits generated by the project for the first 15
2        years of operation.
3            (iv) For those renewable energy credits that
4        qualify and are procured from all other projects under
5        subparagraph (K) or (N) of this paragraph (1), the
6        renewable energy credit purchase price shall be paid
7        by the contracting utilities over the 15-year life of
8        the contract. The electric utility shall receive and
9        retire all renewable energy credits generated by the
10        project for the first 15 years of operation.
11            (v) (iv) Each contract shall include provisions to
12        ensure the delivery of the renewable energy credits
13        for the full term of the contract.
14            (vi) (v) The utility shall be the counterparty to
15        the contracts executed under this subparagraph (L)
16        that are approved by the Commission under the process
17        described in Section 16-111.5 of the Public Utilities
18        Act. No contract shall be executed for an amount that
19        is less than one renewable energy credit per year.
20            (vii) (vi) If, at any time, approved applications
21        for the Adjustable Block program exceed funds
22        collected by the electric utility or would cause the
23        Agency to exceed the limitation described in
24        subparagraph (E) of this paragraph (1) on the amount
25        of renewable energy resources that may be procured,
26        then the Agency shall consider future uncommitted

 

 

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1        funds to be reserved for these contracts on a
2        first-come, first-served basis, with the delivery of
3        renewable energy credits required beginning at the
4        time that the reserved funds become available.
5            (viii) (vii) Nothing in this Section shall require
6        the utility to advance any payment or pay any amounts
7        that exceed, in a given delivery year, (i) the actual
8        amount of revenues collected by the utility in the
9        delivery year and unspent available revenues from
10        prior delivery years, in both cases under paragraph
11        (6) of this subsection (c) and subsection (k) of
12        Section 16-108 of the Public Utilities Act and (ii)
13        other utility-held funds authorized for renewables
14        procurement by order of the Illinois Commerce
15        Commission. Contracts , and contracts executed under
16        this Section shall expressly incorporate this
17        limitation.
18            (ix) Notwithstanding items (ii), (iii), and (iv)
19        of this subparagraph (L), the Agency shall not be
20        restricted from offering additional payment structures
21        if it determines that such adjustments will better
22        achieve the goals of this subsection (c), as
23        prioritized in subparagraph (F) of this paragraph (1)
24        of this subsection (c). Any such adjustments shall be
25        approved by the Commission as a long-term plan
26        amendment under Section 16-111.5 of the Public

 

 

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1        Utilities Act.
2            (x) Notwithstanding other requirements of this
3        subparagraph (L), no modification shall be required to
4        Adjustable Block Program contracts if they were
5        already executed before new contract forms are
6        implemented under the revised long-term plan that
7        follows this amendatory Act of the 102nd General
8        Assembly, as described in subparagraph (A) of this
9        paragraph (1).
10        (M) The Agency shall be authorized to retain one or
11    more experts or expert consulting firms to develop,
12    administer, implement, operate, and evaluate the
13    Adjustable Block program described in subparagraph (K) of
14    this paragraph (1), and the Agency shall retain the
15    consultant or consultants in the same manner, to the
16    extent practicable, as the Agency retains others to
17    administer provisions of this Act, including, but not
18    limited to, the procurement administrator. The selection
19    of experts and expert consulting firms and the procurement
20    process described in this subparagraph (M) are exempt from
21    the requirements of Section 20-10 of the Illinois
22    Procurement Code, under Section 20-10 of that Code. The
23    Agency shall strive to minimize administrative expenses in
24    the implementation of the Adjustable Block program.
25        The Agency and its consultant or consultants shall
26    monitor block activity, share program activity with

 

 

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1    stakeholders and conduct regularly scheduled meetings to
2    discuss program activity and market conditions. If
3    necessary, the Agency may make prospective administrative
4    adjustments to the Adjustable Block program design, such
5    as redistributing available funds or making adjustments to
6    purchase prices as necessary to achieve the goals of this
7    subsection (c). Program modifications to any price,
8    capacity block, or other program element that do not
9    deviate from the Commission's approved value by more than
10    25% shall take effect immediately and are not subject to
11    Commission review and approval. Program modifications to
12    any price, capacity block, or other program element that
13    deviate more than 25% from the Commission's approved value
14    must be approved by the Commission as a long-term plan
15    amendment under Section 16-111.5 of the Public Utilities
16    Act. The Agency shall consider stakeholder feedback when
17    making adjustments to the Adjustable Block design and
18    shall notify stakeholders in advance of any planned
19    changes.
20        Immediately upon the effective date of this amendatory
21    Act of the 102nd General Assembly, the Agency shall
22    consider whether changes to Adjustable Block Program
23    elements of less than 25% can and should be adopted to
24    bring the Adjustable Block Program in line with the
25    updated goals and targets of this subsection (c).
26        (N) The long-term renewable resources procurement plan

 

 

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1    required by this subsection (c) shall include a Community
2    Solar Program for solar photovoltaic community renewable
3    generation projects and may include additional community
4    renewable generation programs or procurements open to
5    other or additional renewable technology program. The
6    Agency shall establish the terms, conditions, and program
7    requirements for the Community Solar Program and for any
8    other program or procurement for community renewable
9    generation projects with a goal to expand renewable energy
10    generating facility access to a broader group of energy
11    consumers, to ensure robust participation opportunities
12    for residential and small commercial customers and those
13    who cannot install renewable energy on their own
14    properties, create opportunities for subscribers to
15    participate in local renewables projects in both urban and
16    rural communities across the State, enable communities to
17    self-organize their own renewables projects, and increase
18    community ownership of renewables projects. Any plan
19    approved by the Commission shall allow subscriptions to
20    community renewable generation projects to be portable and
21    transferable. For purposes of this subparagraph (N):
22            "Community" means:
23                (i) a social unit in which people come
24            together regularly to effect change;
25                (ii) a social unit in which participants are
26            marked by a cooperative spirit, a common purpose,

 

 

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1            or shared interests or characteristics; or
2                (iii) a space understood by its residents to
3            be delineated through geographic boundaries or
4            landmarks.
5            "Community benefit" means:
6                (i) a range of services and activities that
7            provide affirmative, economic, environmental,
8            social, cultural, or physical value to a
9            community; or
10                (ii) a mechanism that enables economic
11            development, high-quality employment, and
12            education opportunities for local workers and
13            residents, or formal monitoring and oversight
14            structures such that community members may ensure
15            that those services and activities respond to
16            local knowledge and needs.
17            "Community ownership" means an arrangement in
18        which:
19                (i) an electric generating facility is, or
20            over time will be, in significant part, owned
21            collectively by members of the community to which
22            an electric generating facility provides benefits;
23                (ii) members of that community participate in
24            decisions regarding the governance, operation,
25            maintenance, and upgrades of and to that facility;
26            and

 

 

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1                (iii) members of that community benefit from
2            regular use of that facility.
3            "Portable" , "portable" means that subscriptions
4        may be retained by the subscriber even if the
5        subscriber relocates or changes its address within the
6        same utility service territory.
7            "Stakeholder" means any person or entity with a
8        declared or conceivable interest in a project.
9            "Transferable" ; and "transferable" means that a
10        subscriber may assign or sell subscriptions to another
11        person within the same utility service territory.
12        The Community Solar Program established under this
13    subparagraph (N) shall be designed to give preference to
14    the procurement of renewable energy credits from projects
15    that meet one or more of the following community criteria
16    for a portion of the overall renewable energy credits to
17    be procured under the Community Solar Program:
18            (i) include community ownership;
19            (ii) are put forward by approved vendors or
20        companies that take higher numbers of the equity
21        actions described in paragraph (7) of this subsection
22        (c);
23            (iii) provide additional community benefit, beyond
24        project participation as a subscriber;
25            (iv) ensure meaningful involvement in project
26        organization and development by nonprofit

 

 

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1        organizations, public entities, or community members;
2            (v) increase the geographic diversity of projects
3        in the Community Solar Program;
4            (vi) are also brownfield site photovoltaic
5        projects;
6            (vii) ensure engagement in project operations and
7        management by nonprofit organizations, public
8        entities, or community members; or
9            (viii) serve only local subscribers.
10        Terms and guidance within these criteria that are not
11    defined in this subparagraph (N) shall be defined by the
12    Agency, with stakeholder input, during the development of
13    the Agency's long-term renewable resources procurement
14    plan.
15        The Community Solar Program shall procure renewable
16    energy credits in the following manner:
17            (1) For a portion of the overall renewable energy
18        credits to be procured under the Community Solar
19        Program, the Agency shall initiate a request for
20        projects that serve a minimum of 50% residential and
21        small business subscribers and maximize the community
22        criteria in this subparagraph (N). The Agency shall
23        score all projects submitted under this request for
24        projects based on their ability to meet the community
25        criteria. Both projects that better meet individual
26        criteria as well as projects that address a higher

 

 

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1        number of criteria shall receive a higher score. The
2        Agency shall also consider renewable energy credit
3        price when qualifying and scoring projects. The Agency
4        shall select the highest scoring projects to advance,
5        subject to budget availability, reserving a portion of
6        the capacity selected through the request for those
7        projects that include a community ownership component.
8            (2) Once projects that maximize the community
9        criteria have been selected, the Agency shall initiate
10        a procurement for the remaining renewable energy
11        credits from photovoltaic community renewable
12        generation projects needed to meet the goals of
13        subparagraph (C) of this paragraph (1). The Agency
14        shall strive to procure renewable energy credits
15        through the Community Solar Program 4 times per
16        delivery year. This manner of procuring renewable
17        energy credits for the Community Solar Program may be
18        adjusted upon review by the Agency and approval by the
19        Commission through the long-term renewable resources
20        procurement plan update process in order to better
21        meet the goals of this subsection (c) and the
22        requirements of this subparagraph (N).
23        Electric utilities shall provide a monetary credit to
24    a subscriber's subsequent bill for service for the
25    proportional output of a community renewable generation
26    project attributable to that subscriber as specified in

 

 

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1    Section 16-107.5 of the Public Utilities Act.
2        The Agency shall procure purchase renewable energy
3    credits from subscribed shares of photovoltaic community
4    renewable generation projects through the Community Solar
5    Program described in this subparagraph (N) Adjustable
6    Block program described in subparagraph (K) of this
7    paragraph (1) or through the Illinois Solar for All
8    Program described in Section 1-56 of this Act. The Agency
9    shall procure renewable energy credits from unsubscribed
10    shares of photovoltaic community renewable generation
11    projects that have achieved a subscription level of 80% or
12    higher at the average winning price from the most recent
13    procurement of renewable energy credits from utility-scale
14    solar photovoltaic projects or another amount established
15    through the long-term planning process described in
16    subparagraph (A) of this paragraph (1) of this subsection
17    (c). The electric utility shall purchase any unsubscribed
18    energy from community renewable generation projects that
19    are Qualifying Facilities ("QF") under the electric
20    utility's tariff for purchasing the output from QFs under
21    Public Utilities Regulatory Policies Act of 1978.
22        The owners of and any subscribers to a community
23    renewable generation project shall not be considered
24    public utilities or alternative retail electricity
25    suppliers under the Public Utilities Act solely as a
26    result of their interest in or subscription to a community

 

 

SB2248- 108 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 109 -LRB102 17406 SPS 22899 b

1    plan under Section 16-108.12 of the Public Utilities Act.
2    In making the determinations required under this
3    subparagraph (O), the Commission shall consider the
4    experience and performance under the programs and any
5    evaluation reports. The Commission shall also provide for
6    an independent evaluation of those programs on a periodic
7    basis that are funded under this subparagraph (O).
8        (P) The Agency shall give preference to the
9    procurement of renewable energy credits from new
10    utility-scale photovoltaic and wind projects that provide
11    additional land use and environmental benefits such as:
12            (i) agriculture-friendly benefits;
13            (ii) pollinator-friendly site practices as
14        identified in the Pollinator-Friendly Solar Site Act;
15            (iii) brownfield redevelopment, through location
16        at sites regulated under any of the programs
17        identified as a brownfield site photovoltaic project
18        under Section 1-10;
19            (iv) vegetative buffers, which are areas
20        consisting of perennial vegetation, excluding invasive
21        plants and noxious weeds, adjacent to a body of water
22        that protects the water resources from runoff
23        pollution, and stabilizes soils, shores, and banks to
24        protect or provide riparian corridors;
25            (v) commitment to land use practices that result
26        in carbon sequestration;

 

 

SB2248- 110 -LRB102 17406 SPS 22899 b

1            (vi) land use, design, siting, and construction
2        practices that minimize interference with natural
3        habitat and wildlife; and
4            (vii) other land use or environmental benefits
5        identified by the Agency with input from stakeholders
6        received during the long-term renewable resources
7        procurement plan revision process.
8        (1.5) No Later than May 31, 2022, all Illinois
9    electric cooperatives and municipal utilities shall
10    develop a plan to ensure that their members and customers
11    have access to renewable energy on a reasonably equivalent
12    basis to all other residents in the State, including the
13    overall percentage goals listed in subparagraph (A) of
14    paragraph (1) of this Section and the carbon-free
15    resources goals of subsection (k) of this Section 1-75.
16    These plans shall be developed through a public process
17    involving municipal utility and cooperative members,
18    customers, and other members of the public, and shall be
19    filed with the Illinois Commerce Commission at least every
20    2 years.
21        (2) (Blank).
22        (3) (Blank).
23        (4) The electric utility shall retire all renewable
24    energy credits used to comply with the standard.
25        (5) Beginning with the 2010 delivery year and ending
26    June 1, 2017, an electric utility subject to this

 

 

SB2248- 111 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 112 -LRB102 17406 SPS 22899 b

1    Section and Section 16-111.5 of the Public Utilities Act.
2    These costs shall include associated reasonable expenses
3    for implementing the procurement programs, including, but
4    not limited to, the costs of administering and evaluating
5    the Adjustable Block program, through an automatic
6    adjustment clause tariff in accordance with subsection (k)
7    of Section 16-108 of the Public Utilities Act.
8        (7) Renewable energy credits procured from new
9    photovoltaic projects or new distributed renewable energy
10    generation devices under this Section after June 1, 2017
11    (the effective date of Public Act 99-906) must be procured
12    from devices installed by a qualified person in compliance
13    with the requirements of Section 16-128A of the Public
14    Utilities Act and any rules or regulations adopted
15    thereunder.
16        In meeting the renewable energy requirements of this
17    subsection (c), to the extent feasible and consistent with
18    State and federal law, the renewable energy credit
19    procurements, Adjustable Block solar program, and
20    community renewable generation program, and Illinois Solar
21    for All Program shall provide employment opportunities for
22    all segments of the population and workforce, including
23    black, indigenous, and people of color-owned
24    minority-owned and women-owned female-owned business
25    enterprises, as well as black, indigenous, and people of
26    color-owned and women-owned worker-owned cooperatives or

 

 

SB2248- 113 -LRB102 17406 SPS 22899 b

1    other such employee-owned entities, and shall not,
2    consistent with State and federal law, discriminate based
3    on race or socioeconomic status.
4        Specifically, as the Agency conducts competitive
5    procurement processes and implements programs to procure
6    renewable energy credits identified in the long-term
7    renewable resources procurement plan, the Agency must give
8    preference to the procurement of renewable energy credits
9    from those entities, including approved vendors,
10    companies, nonprofit organizations, and worker-owned
11    cooperatives, as described in the equity actions points
12    calculation in this paragraph (7). Entities from whom the
13    Agency procures renewable energy credits shall comply with
14    submitting an annual report of elements described in the
15    equity actions points calculation in this paragraph (7)
16    for the first 3 years after the year of the procurement
17    event in which renewable energy credits were procured on
18    June 1 of each applicable year. For the purposes of this
19    subsection (c):
20        "BIPOC" and "black, indigenous, and people of color"
21    are defined as people who are members of the groups
22    described in subparagraphs (a) through (e) of paragraph
23    (A) of subsection (1) of Section 2 of the Business
24    Enterprise for Minorities, Women, and Persons with
25    Disabilities Act.
26        "Labor peace agreement" means an agreement between an

 

 

SB2248- 114 -LRB102 17406 SPS 22899 b

1    entity and any labor organization recognized under the
2    National Labor Relations Act, referred to in this Act as a
3    bona fide labor organization, that may prohibit labor
4    organizations and members from engaging in picketing, work
5    stoppages, boycotts, and any other economic interference
6    with the entity. This agreement means that the entity has
7    agreed not to disrupt efforts by the bona fide labor
8    organization to communicate with, and attempt to organize
9    and represent, the entity's employees. The agreement shall
10    provide a bona fide labor organization access at
11    reasonable times to areas in which the entity's employees
12    work, for the purpose of meeting with employees to discuss
13    their right to representation, employment rights under
14    State law, and terms and conditions of employment. This
15    type of agreement shall not mandate a particular method of
16    election or certification of the bona fide labor
17    organization.
18        "Energy worker" means a person who has been employed
19    full-time for a period of one year or longer, and within
20    the previous 5 years, at a fossil fuel power plant, a
21    nuclear power plant, or a coal mine located within the
22    State of Illinois, whether or not they are employed by the
23    owner of the power plant or mine. Energy workers are
24    considered to be full-time if they work at least 35 hours
25    per week for 45 weeks a year or the 1,820 work-hour
26    equivalent with vacations, paid holidays, and sick time,

 

 

SB2248- 115 -LRB102 17406 SPS 22899 b

1    but not overtime, included in this computation.
2    Classification of an individual as an energy worker
3    continues for 5 years from the latest date of employment
4    or the effective date of this Act, whichever is later.
5        The Illinois Power Agency, using alternative bidding
6    procedures as provided for in subsection (i) of Section
7    20-10 of the Illinois Procurement Code, shall track and
8    award equity actions in bids for the renewable energy
9    credit procurements, Adjustable Block solar program,
10    community renewable generation program, and Illinois Solar
11    for All Program using a points system totaling a maximum
12    of 260 points. This system shall consider both equity
13    actions to meet the goals described in paragraph (7), and
14    the bid prices, as follows:
15            (A) Hiring Equity Action (up to 20 points):
16        awarded based on the percentage of the company's or
17        entity's workforce (measured by full-time equivalents
18        as defined by the Government Accountability Office of
19        the United States Congress) who are BIPOC and who are
20        paid at or above the prevailing wage; one point shall
21        be awarded for each 5% of the workforce which is
22        composed of BIPOC who are also paid at or above the
23        prevailing wage, up to a maximum of 20 points.
24            (B) Clean Jobs Workforce and Returning Residents
25        Action (up to 20 points): awarded based on the
26        percentage of the workers associated with the project

 

 

SB2248- 116 -LRB102 17406 SPS 22899 b

1        who are graduates or trainees from equity-focused
2        workforce training programs designated by the Illinois
3        Power Agency, or have equivalent certification, and
4        paid at or above the prevailing wage; one point shall
5        be awarded for each 5% of the workforce which is
6        composed of such graduates or trainees, up to a
7        maximum of 20 points.
8            (C) Minority Business Enterprise Action (30
9        points): being an entity defined as a minority-owned
10        business under Section 2 of the Business Enterprise
11        for Minorities, Women, and Persons with Disabilities
12        Act or (ii) an entity, including a business, a
13        nonprofit, or a worker-owned cooperative registered
14        with other state, regional, or local programs intended
15        to certify minority-owned businesses.
16            (D) Contracting Equity Action (20 points): awarded
17        based on the percentage of the company's or entity's
18        subcontractors or vendors that are BIPOC-owned
19        businesses, defined as a minority owned-business or a
20        woman-owned business under Section 2 of the Business
21        Enterprise for Minorities, Women, and Persons with
22        Disabilities Act, or awarded based on the percentage
23        of the subcontracted workers associated with the
24        project, including from all subcontractors and vendors
25        that are Black, indigenous, and people of color who
26        are paid at or above the prevailing wage; 5 points

 

 

SB2248- 117 -LRB102 17406 SPS 22899 b

1        shall be awarded for each 10% of either subcontractors
2        or subcontractors' workers who are Black, indigenous,
3        and people of color, whichever is greater, up to a
4        maximum of 20 points. Bids may not be eligible for
5        points under this subjection unless they plan to use
6        subcontractors. If a company or entity does not use
7        subcontractors, points awarded for the Contracting
8        Equity Action shall be equivalent to the point value
9        awarded for the Hiring Equity Action under
10        subparagraph (A).
11            (E) Expanding Clean Energy Entrepreneurship Action
12        (20 points): awarded to entities who are current or
13        former participants in contractor incubator programs
14        or entrepreneurship programs designated by the
15        Illinois Power Agency, or have equivalent
16        qualification.
17            (F) Community Benefits Action (15 points): (i) for
18        projects 100 kW in size or larger, project has an
19        executed Community Benefits Agreement that could
20        include, but is not limited to a commitment to hire
21        local workers, union workers, energy workers
22        transitioning to clean energy jobs, graduates or
23        trainees from equity-focused workforce training
24        programs designated by the Illinois Power Agency, or
25        current or former participants in contractor incubator
26        programs or entrepreneurship programs designated by

 

 

SB2248- 118 -LRB102 17406 SPS 22899 b

1        the Illinois Power Agency, or have equivalent
2        qualifications, a commitment to pay workers at or
3        above the prevailing wage; and a commitment to give
4        communities ownership opportunities in electric
5        vehicle projects, where relevant; and (ii) for
6        projects under 100 kW in size, companies pay their
7        workforces at or above the prevailing wage.
8            (G) Small Business Action (15 points): company's
9        workforce is composed of 3 or fewer full-time
10        employees (measured by full-time equivalents as
11        defined by the Government Accountability Office of the
12        United States Congress).
13            (H) Labor Peace Agreement Action (10 points): (i)
14        for a bidder with 20 or more employees: the bidder
15        attests that the bidder has entered into a labor peace
16        agreement, will abide by the terms of the agreement,
17        and will submit a copy of the page of the labor peace
18        agreement that contains the signatures of the union
19        representative and the installer, or (ii) for a bidder
20        that is a party to a labor peace agreement with a bona
21        fide labor organization that currently represents, or
22        is actively seeking to represent energy efficiency
23        installers and other workers in Illinois, or (iii) the
24        bidder submits an attestation affirming that the
25        bidder will use best efforts to use union labor in the
26        bidder's projects and in the construction or retrofit

 

 

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1        of the facilities associated with the bidder's
2        renewable energy operations, where applicable.
3            (I) Price of bid (130 points): as scored by the
4        Illinois Power Agency.
5        Bids scoring fewer than 135 points shall not be
6    awarded contracts.
7    (d) Clean coal portfolio standard.
8        (1) The procurement plans shall include electricity
9    generated using clean coal. Each utility shall enter into
10    one or more sourcing agreements with the initial clean
11    coal facility, as provided in paragraph (3) of this
12    subsection (d), covering electricity generated by the
13    initial clean coal facility representing at least 5% of
14    each utility's total supply to serve the load of eligible
15    retail customers in 2015 and each year thereafter, as
16    described in paragraph (3) of this subsection (d), subject
17    to the limits specified in paragraph (2) of this
18    subsection (d). It is the goal of the State that by January
19    1, 2025, 25% of the electricity used in the State shall be
20    generated by cost-effective clean coal facilities. For
21    purposes of this subsection (d), "cost-effective" means
22    that the expenditures pursuant to such sourcing agreements
23    do not cause the limit stated in paragraph (2) of this
24    subsection (d) to be exceeded and do not exceed cost-based
25    benchmarks, which shall be developed to assess all
26    expenditures pursuant to such sourcing agreements covering

 

 

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

 

 

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

 

 

SB2248- 122 -LRB102 17406 SPS 22899 b

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

 

 

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

 

 

SB2248- 124 -LRB102 17406 SPS 22899 b

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

 

 

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

 

 

SB2248- 126 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 127 -LRB102 17406 SPS 22899 b

1            subsection (d) and paragraph (5) of subsection (d)
2            of Section 16-115 of the Public Utilities Act,
3            provided that the amount paid by the utility in
4            any year will be limited by paragraph (2) of this
5            subsection (d);
6                (ii) provide that the utility's payment
7            obligation in respect of the quantity of
8            electricity determined pursuant to the preceding
9            clause (i) shall be limited to an amount equal to
10            (1) the difference between the contract price
11            determined pursuant to subparagraph (A) of
12            paragraph (3) of this subsection (d) and the
13            day-ahead price for electricity delivered to the
14            regional transmission organization market of the
15            utility that is party to such sourcing agreement
16            (or any successor delivery point at which such
17            utility's supply obligations are financially
18            settled on an hourly basis) (the "reference
19            price") on the day preceding the day on which the
20            electricity is delivered to the initial clean coal
21            facility busbar, multiplied by (2) the quantity of
22            electricity determined pursuant to the preceding
23            clause (i); and
24                (iii) not require the utility to take physical
25            delivery of the electricity produced by the
26            facility;

 

 

SB2248- 128 -LRB102 17406 SPS 22899 b

1            (D) general provisions, which shall:
2                (i) specify a term of no more than 30 years,
3            commencing on the commercial operation date of the
4            facility;
5                (ii) provide that utilities shall maintain
6            adequate records documenting purchases under the
7            sourcing agreements entered into to comply with
8            this subsection (d) and shall file an accounting
9            with the load forecast that must be filed with the
10            Agency by July 15 of each year, in accordance with
11            subsection (d) of Section 16-111.5 of the Public
12            Utilities Act;
13                (iii) provide that all costs associated with
14            the initial clean coal facility will be
15            periodically reported to the Federal Energy
16            Regulatory Commission and to purchasers in
17            accordance with applicable laws governing
18            cost-based wholesale power contracts;
19                (iv) permit the Illinois Power Agency to
20            assume ownership of the initial clean coal
21            facility, without monetary consideration and
22            otherwise on reasonable terms acceptable to the
23            Agency, if the Agency so requests no less than 3
24            years prior to the end of the stated contract
25            term;
26                (v) require the owner of the initial clean

 

 

SB2248- 129 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 130 -LRB102 17406 SPS 22899 b

1            this purpose and any carbon emission credits
2            associated with sequestration of carbon from the
3            facility must be permanently retired. The initial
4            clean coal facility shall not forfeit its
5            designation as a clean coal facility if the
6            facility fails to fully comply with the applicable
7            carbon sequestration requirements in any given
8            year, provided the requisite offsets are
9            purchased. However, the Attorney General, on
10            behalf of the People of the State of Illinois, may
11            specifically enforce the facility's sequestration
12            requirement and the other terms of this contract
13            provision. Compliance with the sequestration
14            requirements and offset purchase requirements
15            specified in paragraph (3) of this subsection (d)
16            shall be reviewed annually by an independent
17            expert retained by the owner of the initial clean
18            coal facility, with the advance written approval
19            of the Attorney General. The Commission may, in
20            the course of the review specified in item (vii),
21            reduce the allowable return on equity for the
22            facility if the facility willfully fails to comply
23            with the carbon capture and sequestration
24            requirements set forth in this item (v);
25                (vi) include limits on, and accordingly
26            provide for modification of, the amount the

 

 

SB2248- 131 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 132 -LRB102 17406 SPS 22899 b

1            electric supplier's obligation to incur any
2            liability until such time as the facility is in
3            commercial operation and generating power and
4            energy and such power and energy is being
5            delivered to the facility busbar;
6                (x) provide that the owner or owners of the
7            initial clean coal facility, which is the
8            counterparty to such sourcing agreement, shall
9            have the right from time to time to elect whether
10            the obligations of the utility party thereto shall
11            be governed by the power purchase provisions or
12            the contract for differences provisions;
13                (xi) append documentation showing that the
14            formula rate and contract, insofar as they relate
15            to the power purchase provisions, have been
16            approved by the Federal Energy Regulatory
17            Commission pursuant to Section 205 of the Federal
18            Power Act;
19                (xii) provide that any changes to the terms of
20            the contract, insofar as such changes relate to
21            the power purchase provisions, are subject to
22            review under the public interest standard applied
23            by the Federal Energy Regulatory Commission
24            pursuant to Sections 205 and 206 of the Federal
25            Power Act; and
26                (xiii) conform with customary lender

 

 

SB2248- 133 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 134 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 135 -LRB102 17406 SPS 22899 b

1        return on equity for the project; and
2            (iv) Commission review. If the General Assembly
3        enacts authorizing legislation pursuant to
4        subparagraph (iii) approving a sourcing agreement, the
5        Commission shall, within 90 days of such enactment,
6        complete a review of such sourcing agreement. During
7        such time period, the Commission shall implement any
8        directive of the General Assembly, resolve any
9        disputes between the parties to the sourcing agreement
10        concerning the terms of such agreement, approve the
11        form of such agreement, and issue an order finding
12        that the sourcing agreement is prudent and reasonable.
13        The facility cost report shall be prepared as follows:
14            (A) The facility cost report shall be prepared by
15        duly licensed engineering and construction firms
16        detailing the estimated capital costs payable to one
17        or more contractors or suppliers for the engineering,
18        procurement and construction of the components
19        comprising the initial clean coal facility and the
20        estimated costs of operation and maintenance of the
21        facility. The facility cost report shall include:
22                (i) an estimate of the capital cost of the
23            core plant based on one or more front end
24            engineering and design studies for the
25            gasification island and related facilities. The
26            core plant shall include all civil, structural,

 

 

SB2248- 136 -LRB102 17406 SPS 22899 b

1            mechanical, electrical, control, and safety
2            systems.
3                (ii) an estimate of the capital cost of the
4            balance of the plant, including any capital costs
5            associated with sequestration of carbon dioxide
6            emissions and all interconnects and interfaces
7            required to operate the facility, such as
8            transmission of electricity, construction or
9            backfeed power supply, pipelines to transport
10            substitute natural gas or carbon dioxide, potable
11            water supply, natural gas supply, water supply,
12            water discharge, landfill, access roads, and coal
13            delivery.
14            The quoted construction costs shall be expressed
15        in nominal dollars as of the date that the quote is
16        prepared and shall include capitalized financing costs
17        during construction, taxes, insurance, and other
18        owner's costs, and an assumed escalation in materials
19        and labor beyond the date as of which the construction
20        cost quote is expressed.
21            (B) The front end engineering and design study for
22        the gasification island and the cost study for the
23        balance of plant shall include sufficient design work
24        to permit quantification of major categories of
25        materials, commodities and labor hours, and receipt of
26        quotes from vendors of major equipment required to

 

 

SB2248- 137 -LRB102 17406 SPS 22899 b

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

 

 

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1        analysis of the initial clean coal facility's ability
2        to deliver power and energy into the applicable
3        regional transmission organization markets and an
4        analysis of the expected capacity factor for the
5        initial clean coal facility.
6            (E) Amounts paid to third parties unrelated to the
7        owner or owners of the initial clean coal facility to
8        prepare the core plant construction cost quote,
9        including the front end engineering and design study,
10        and the operating and maintenance cost quote will be
11        reimbursed through Coal Development Bonds.
12        (5) Re-powering and retrofitting coal-fired power
13    plants previously owned by Illinois utilities to qualify
14    as clean coal facilities. During the 2009 procurement
15    planning process and thereafter, the Agency and the
16    Commission shall consider sourcing agreements covering
17    electricity generated by power plants that were previously
18    owned by Illinois utilities and that have been or will be
19    converted into clean coal facilities, as defined by
20    Section 1-10 of this Act. Pursuant to such procurement
21    planning process, the owners of such facilities may
22    propose to the Agency sourcing agreements with utilities
23    and alternative retail electric suppliers required to
24    comply with subsection (d) of this Section and item (5) of
25    subsection (d) of Section 16-115 of the Public Utilities
26    Act, covering electricity generated by such facilities. In

 

 

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1    the case of sourcing agreements that are power purchase
2    agreements, the contract price for electricity sales shall
3    be established on a cost of service basis. In the case of
4    sourcing agreements that are contracts for differences,
5    the contract price from which the reference price is
6    subtracted shall be established on a cost of service
7    basis. The Agency and the Commission may approve any such
8    utility sourcing agreements that do not exceed cost-based
9    benchmarks developed by the procurement administrator, in
10    consultation with the Commission staff, Agency staff and
11    the procurement monitor, subject to Commission review and
12    approval. The Commission shall have authority to inspect
13    all books and records associated with these clean coal
14    facilities during the term of any such contract.
15        (6) Costs incurred under this subsection (d) or
16    pursuant to a contract entered into under this subsection
17    (d) shall be deemed prudently incurred and reasonable in
18    amount and the electric utility shall be entitled to full
19    cost recovery pursuant to the tariffs filed with the
20    Commission.
21    (d-5) Zero emission standard.
22        (1) Beginning with the delivery year commencing on
23    June 1, 2017, the Agency shall, for electric utilities
24    that serve at least 100,000 retail customers in this
25    State, procure contracts with zero emission facilities
26    that are reasonably capable of generating cost-effective

 

 

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1    zero emission credits in an amount approximately equal to
2    16% of the actual amount of electricity delivered by each
3    electric utility to retail customers in the State during
4    calendar year 2014. For an electric utility serving fewer
5    than 100,000 retail customers in this State that
6    requested, under Section 16-111.5 of the Public Utilities
7    Act, that the Agency procure power and energy for all or a
8    portion of the utility's Illinois load for the delivery
9    year commencing June 1, 2016, the Agency shall procure
10    contracts with zero emission facilities that are
11    reasonably capable of generating cost-effective zero
12    emission credits in an amount approximately equal to 16%
13    of the portion of power and energy to be procured by the
14    Agency for the utility. The duration of the contracts
15    procured under this subsection (d-5) shall be for a term
16    of 10 years ending May 31, 2027. The quantity of zero
17    emission credits to be procured under the contracts shall
18    be all of the zero emission credits generated by the zero
19    emission facility in each delivery year; however, if the
20    zero emission facility is owned by more than one entity,
21    then the quantity of zero emission credits to be procured
22    under the contracts shall be the amount of zero emission
23    credits that are generated from the portion of the zero
24    emission facility that is owned by the winning supplier.
25        The 16% value identified in this paragraph (1) is the
26    average of the percentage targets in subparagraph (B) of

 

 

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1    paragraph (1) of subsection (c) of this Section for the 5
2    delivery years beginning June 1, 2017.
3        The procurement process shall be subject to the
4    following provisions:
5            (A) Those zero emission facilities that intend to
6        participate in the procurement shall submit to the
7        Agency the following eligibility information for each
8        zero emission facility on or before the date
9        established by the Agency:
10                (i) the in-service date and remaining useful
11            life of the zero emission facility;
12                (ii) the amount of power generated annually
13            for each of the years 2005 through 2015, and the
14            projected zero emission credits to be generated
15            over the remaining useful life of the zero
16            emission facility, which shall be used to
17            determine the capability of each facility;
18                (iii) the annual zero emission facility cost
19            projections, expressed on a per megawatthour
20            basis, over the next 6 delivery years, which shall
21            include the following: operation and maintenance
22            expenses; fully allocated overhead costs, which
23            shall be allocated using the methodology developed
24            by the Institute for Nuclear Power Operations;
25            fuel expenditures; non-fuel capital expenditures;
26            spent fuel expenditures; a return on working

 

 

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1            capital; the cost of operational and market risks
2            that could be avoided by ceasing operation; and
3            any other costs necessary for continued
4            operations, provided that "necessary" means, for
5            purposes of this item (iii), that the costs could
6            reasonably be avoided only by ceasing operations
7            of the zero emission facility; and
8                (iv) a commitment to continue operating, for
9            the duration of the contract or contracts executed
10            under the procurement held under this subsection
11            (d-5), the zero emission facility that produces
12            the zero emission credits to be procured in the
13            procurement.
14            The information described in item (iii) of this
15        subparagraph (A) may be submitted on a confidential
16        basis and shall be treated and maintained by the
17        Agency, the procurement administrator, and the
18        Commission as confidential and proprietary and exempt
19        from disclosure under subparagraphs (a) and (g) of
20        paragraph (1) of Section 7 of the Freedom of
21        Information Act. The Office of Attorney General shall
22        have access to, and maintain the confidentiality of,
23        such information pursuant to Section 6.5 of the
24        Attorney General Act.
25            (B) The price for each zero emission credit
26        procured under this subsection (d-5) for each delivery

 

 

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1        year shall be in an amount that equals the Social Cost
2        of Carbon, expressed on a price per megawatthour
3        basis. However, to ensure that the procurement remains
4        affordable to retail customers in this State if
5        electricity prices increase, the price in an
6        applicable delivery year shall be reduced below the
7        Social Cost of Carbon by the amount ("Price
8        Adjustment") by which the market price index for the
9        applicable delivery year exceeds the baseline market
10        price index for the consecutive 12-month period ending
11        May 31, 2016. If the Price Adjustment is greater than
12        or equal to the Social Cost of Carbon in an applicable
13        delivery year, then no payments shall be due in that
14        delivery year. The components of this calculation are
15        defined as follows:
16                (i) Social Cost of Carbon: The Social Cost of
17            Carbon is $16.50 per megawatthour, which is based
18            on the U.S. Interagency Working Group on Social
19            Cost of Carbon's price in the August 2016
20            Technical Update using a 3% discount rate,
21            adjusted for inflation for each year of the
22            program. Beginning with the delivery year
23            commencing June 1, 2023, the price per
24            megawatthour shall increase by $1 per
25            megawatthour, and continue to increase by an
26            additional $1 per megawatthour each delivery year

 

 

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1            thereafter.
2                (ii) Baseline market price index: The baseline
3            market price index for the consecutive 12-month
4            period ending May 31, 2016 is $31.40 per
5            megawatthour, which is based on the sum of (aa)
6            the average day-ahead energy price across all
7            hours of such 12-month period at the PJM
8            Interconnection LLC Northern Illinois Hub, (bb)
9            50% multiplied by the Base Residual Auction, or
10            its successor, capacity price for the rest of the
11            RTO zone group determined by PJM Interconnection
12            LLC, divided by 24 hours per day, and (cc) 50%
13            multiplied by the Planning Resource Auction, or
14            its successor, capacity price for Zone 4
15            determined by the Midcontinent Independent System
16            Operator, Inc., divided by 24 hours per day.
17                (iii) Market price index: The market price
18            index for a delivery year shall be the sum of
19            projected energy prices and projected capacity
20            prices determined as follows:
21                    (aa) Projected energy prices: the
22                projected energy prices for the applicable
23                delivery year shall be calculated once for the
24                year using the forward market price for the
25                PJM Interconnection, LLC Northern Illinois
26                Hub. The forward market price shall be

 

 

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1                calculated as follows: the energy forward
2                prices for each month of the applicable
3                delivery year averaged for each trade date
4                during the calendar year immediately preceding
5                that delivery year to produce a single energy
6                forward price for the delivery year. The
7                forward market price calculation shall use
8                data published by the Intercontinental
9                Exchange, or its successor.
10                    (bb) Projected capacity prices:
11                        (I) For the delivery years commencing
12                    June 1, 2017, June 1, 2018, and June 1,
13                    2019, the projected capacity price shall
14                    be equal to the sum of (1) 50% multiplied
15                    by the Base Residual Auction, or its
16                    successor, price for the rest of the RTO
17                    zone group as determined by PJM
18                    Interconnection LLC, divided by 24 hours
19                    per day and, (2) 50% multiplied by the
20                    resource auction price determined in the
21                    resource auction administered by the
22                    Midcontinent Independent System Operator,
23                    Inc., in which the largest percentage of
24                    load cleared for Local Resource Zone 4,
25                    divided by 24 hours per day, and where
26                    such price is determined by the

 

 

SB2248- 146 -LRB102 17406 SPS 22899 b

1                    Midcontinent Independent System Operator,
2                    Inc.
3                        (II) For the delivery year commencing
4                    June 1, 2020, and each year thereafter,
5                    the projected capacity price shall be
6                    equal to the sum of (1) 50% multiplied by
7                    the Base Residual Auction, or its
8                    successor, price for the ComEd zone as
9                    determined by PJM Interconnection LLC,
10                    divided by 24 hours per day, and (2) 50%
11                    multiplied by the resource auction price
12                    determined in the resource auction
13                    administered by the Midcontinent
14                    Independent System Operator, Inc., in
15                    which the largest percentage of load
16                    cleared for Local Resource Zone 4, divided
17                    by 24 hours per day, and where such price
18                    is determined by the Midcontinent
19                    Independent System Operator, Inc.
20            For purposes of this subsection (d-5):
21                "Rest of the RTO" and "ComEd Zone" shall have
22            the meaning ascribed to them by PJM
23            Interconnection, LLC.
24                "RTO" means regional transmission
25            organization.
26            (C) No later than 45 days after June 1, 2017 (the

 

 

SB2248- 147 -LRB102 17406 SPS 22899 b

1        effective date of Public Act 99-906), the Agency shall
2        publish its proposed zero emission standard
3        procurement plan. The plan shall be consistent with
4        the provisions of this paragraph (1) and shall provide
5        that winning bids shall be selected based on public
6        interest criteria that include, but are not limited
7        to, minimizing carbon dioxide emissions that result
8        from electricity consumed in Illinois and minimizing
9        sulfur dioxide, nitrogen oxide, and particulate matter
10        emissions that adversely affect the residents citizens
11        of this State. In particular, the selection of winning
12        bids shall take into account the incremental
13        environmental benefits resulting from the procurement,
14        such as any existing environmental benefits that are
15        preserved by the procurements held under Public Act
16        99-906 and would cease to exist if the procurements
17        were not held, including the preservation of zero
18        emission facilities. The plan shall also describe in
19        detail how each public interest factor shall be
20        considered and weighted in the bid selection process
21        to ensure that the public interest criteria are
22        applied to the procurement and given full effect.
23            For purposes of developing the plan, the Agency
24        shall consider any reports issued by a State agency,
25        board, or commission under House Resolution 1146 of
26        the 98th General Assembly and paragraph (4) of

 

 

SB2248- 148 -LRB102 17406 SPS 22899 b

1        subsection (d) of this Section, as well as publicly
2        available analyses and studies performed by or for
3        regional transmission organizations that serve the
4        State and their independent market monitors.
5            Upon publishing of the zero emission standard
6        procurement plan, copies of the plan shall be posted
7        and made publicly available on the Agency's website.
8        All interested parties shall have 10 days following
9        the date of posting to provide comment to the Agency on
10        the plan. All comments shall be posted to the Agency's
11        website. Following the end of the comment period, but
12        no more than 60 days later than June 1, 2017 (the
13        effective date of Public Act 99-906), the Agency shall
14        revise the plan as necessary based on the comments
15        received and file its zero emission standard
16        procurement plan with the Commission.
17            If the Commission determines that the plan will
18        result in the procurement of cost-effective zero
19        emission credits, then the Commission shall, after
20        notice and hearing, but no later than 45 days after the
21        Agency filed the plan, approve the plan or approve
22        with modification. For purposes of this subsection
23        (d-5), "cost effective" means the projected costs of
24        procuring zero emission credits from zero emission
25        facilities do not cause the limit stated in paragraph
26        (2) of this subsection to be exceeded.

 

 

SB2248- 149 -LRB102 17406 SPS 22899 b

1            (C-5) As part of the Commission's review and
2        acceptance or rejection of the procurement results,
3        the Commission shall, in its public notice of
4        successful bidders:
5                (i) identify how the winning bids satisfy the
6            public interest criteria described in subparagraph
7            (C) of this paragraph (1) of minimizing carbon
8            dioxide emissions that result from electricity
9            consumed in Illinois and minimizing sulfur
10            dioxide, nitrogen oxide, and particulate matter
11            emissions that adversely affect the residents
12            citizens of this State;
13                (ii) specifically address how the selection of
14            winning bids takes into account the incremental
15            environmental benefits resulting from the
16            procurement, including any existing environmental
17            benefits that are preserved by the procurements
18            held under Public Act 99-906 and would have ceased
19            to exist if the procurements had not been held,
20            such as the preservation of zero emission
21            facilities;
22                (iii) quantify the environmental benefit of
23            preserving the resources identified in item (ii)
24            of this subparagraph (C-5), including the
25            following:
26                    (aa) the value of avoided greenhouse gas

 

 

SB2248- 150 -LRB102 17406 SPS 22899 b

1                emissions measured as the product of the zero
2                emission facilities' output over the contract
3                term multiplied by the U.S. Environmental
4                Protection Agency eGrid subregion carbon
5                dioxide emission rate and the U.S. Interagency
6                Working Group on Social Cost of Carbon's price
7                in the August 2016 Technical Update using a 3%
8                discount rate, adjusted for inflation for each
9                delivery year; and
10                    (bb) the costs of replacement with other
11                zero carbon dioxide resources, including wind
12                and photovoltaic, based upon the simple
13                average of the following:
14                        (I) the price, or if there is more
15                    than one price, the average of the prices,
16                    paid for renewable energy credits from new
17                    utility-scale wind projects in the
18                    procurement events specified in item (i)
19                    of subparagraph (G) of paragraph (1) of
20                    subsection (c) of this Section; and
21                        (II) the price, or if there is more
22                    than one price, the average of the prices,
23                    paid for renewable energy credits from new
24                    utility-scale solar projects and
25                    brownfield site photovoltaic projects in
26                    the procurement events specified in item

 

 

SB2248- 151 -LRB102 17406 SPS 22899 b

1                    (ii) of subparagraph (G) of paragraph (1)
2                    of subsection (c) of this Section and,
3                    after January 1, 2015, renewable energy
4                    credits from photovoltaic distributed
5                    generation projects in procurement events
6                    held under subsection (c) of this Section.
7            Each utility shall enter into binding contractual
8        arrangements with the winning suppliers.
9            The procurement described in this subsection
10        (d-5), including, but not limited to, the execution of
11        all contracts procured, shall be completed no later
12        than May 10, 2017. Based on the effective date of
13        Public Act 99-906, the Agency and Commission may, as
14        appropriate, modify the various dates and timelines
15        under this subparagraph and subparagraphs (C) and (D)
16        of this paragraph (1). The procurement and plan
17        approval processes required by this subsection (d-5)
18        shall be conducted in conjunction with the procurement
19        and plan approval processes required by subsection (c)
20        of this Section and Section 16-111.5 of the Public
21        Utilities Act, to the extent practicable.
22        Notwithstanding whether a procurement event is
23        conducted under Section 16-111.5 of the Public
24        Utilities Act, the Agency shall immediately initiate a
25        procurement process on June 1, 2017 (the effective
26        date of Public Act 99-906).

 

 

SB2248- 152 -LRB102 17406 SPS 22899 b

1            (D) Following the procurement event described in
2        this paragraph (1) and consistent with subparagraph
3        (B) of this paragraph (1), the Agency shall calculate
4        the payments to be made under each contract for the
5        next delivery year based on the market price index for
6        that delivery year. The Agency shall publish the
7        payment calculations no later than May 25, 2017 and
8        every May 25 thereafter.
9            (E) Notwithstanding the requirements of this
10        subsection (d-5), the contracts executed under this
11        subsection (d-5) shall provide that the zero emission
12        facility may, as applicable, suspend or terminate
13        performance under the contracts in the following
14        instances:
15                (i) A zero emission facility shall be excused
16            from its performance under the contract for any
17            cause beyond the control of the resource,
18            including, but not restricted to, acts of God,
19            flood, drought, earthquake, storm, fire,
20            lightning, epidemic, war, riot, civil disturbance
21            or disobedience, labor dispute, labor or material
22            shortage, sabotage, acts of public enemy,
23            explosions, orders, regulations or restrictions
24            imposed by governmental, military, or lawfully
25            established civilian authorities, which, in any of
26            the foregoing cases, by exercise of commercially

 

 

SB2248- 153 -LRB102 17406 SPS 22899 b

1            reasonable efforts the zero emission facility
2            could not reasonably have been expected to avoid,
3            and which, by the exercise of commercially
4            reasonable efforts, it has been unable to
5            overcome. In such event, the zero emission
6            facility shall be excused from performance for the
7            duration of the event, including, but not limited
8            to, delivery of zero emission credits, and no
9            payment shall be due to the zero emission facility
10            during the duration of the event.
11                (ii) A zero emission facility shall be
12            permitted to terminate the contract if legislation
13            is enacted into law by the General Assembly that
14            imposes or authorizes a new tax, special
15            assessment, or fee on the generation of
16            electricity, the ownership or leasehold of a
17            generating unit, or the privilege or occupation of
18            such generation, ownership, or leasehold of
19            generation units by a zero emission facility.
20            However, the provisions of this item (ii) do not
21            apply to any generally applicable tax, special
22            assessment or fee, or requirements imposed by
23            federal law.
24                (iii) A zero emission facility shall be
25            permitted to terminate the contract in the event
26            that the resource requires capital expenditures in

 

 

SB2248- 154 -LRB102 17406 SPS 22899 b

1            excess of $40,000,000 that were neither known nor
2            reasonably foreseeable at the time it executed the
3            contract and that a prudent owner or operator of
4            such resource would not undertake.
5                (iv) A zero emission facility shall be
6            permitted to terminate the contract in the event
7            the Nuclear Regulatory Commission terminates the
8            resource's license.
9            (F) If the zero emission facility elects to
10        terminate a contract under subparagraph (E) of this
11        paragraph (1), then the Commission shall reopen the
12        docket in which the Commission approved the zero
13        emission standard procurement plan under subparagraph
14        (C) of this paragraph (1) and, after notice and
15        hearing, enter an order acknowledging the contract
16        termination election if such termination is consistent
17        with the provisions of this subsection (d-5).
18        (2) For purposes of this subsection (d-5), the amount
19    paid per kilowatthour means the total amount paid for
20    electric service expressed on a per kilowatthour basis.
21    For purposes of this subsection (d-5), the total amount
22    paid for electric service includes, without limitation,
23    amounts paid for supply, transmission, distribution,
24    surcharges, and add-on taxes.
25        Notwithstanding the requirements of this subsection
26    (d-5), the contracts executed under this subsection (d-5)

 

 

SB2248- 155 -LRB102 17406 SPS 22899 b

1    shall provide that the total of zero emission credits
2    procured under a procurement plan shall be subject to the
3    limitations of this paragraph (2). For each delivery year,
4    the contractual volume receiving payments in such year
5    shall be reduced for all retail customers based on the
6    amount necessary to limit the net increase that delivery
7    year to the costs of those credits included in the amounts
8    paid by eligible retail customers in connection with
9    electric service to no more than 1.65% of the amount paid
10    per kilowatthour by eligible retail customers during the
11    year ending May 31, 2009. The result of this computation
12    shall apply to and reduce the procurement for all retail
13    customers, and all those customers shall pay the same
14    single, uniform cents per kilowatthour charge under
15    subsection (k) of Section 16-108 of the Public Utilities
16    Act. To arrive at a maximum dollar amount of zero emission
17    credits to be paid for the particular delivery year, the
18    resulting per kilowatthour amount shall be applied to the
19    actual amount of kilowatthours of electricity delivered by
20    the electric utility in the delivery year immediately
21    prior to the procurement, to all retail customers in its
22    service territory. Unpaid contractual volume for any
23    delivery year shall be paid in any subsequent delivery
24    year in which such payments can be made without exceeding
25    the amount specified in this paragraph (2). The
26    calculations required by this paragraph (2) shall be made

 

 

SB2248- 156 -LRB102 17406 SPS 22899 b

1    only once for each procurement plan year. Once the
2    determination as to the amount of zero emission credits to
3    be paid is made based on the calculations set forth in this
4    paragraph (2), no subsequent rate impact determinations
5    shall be made and no adjustments to those contract amounts
6    shall be allowed. All costs incurred under those contracts
7    and in implementing this subsection (d-5) shall be
8    recovered by the electric utility as provided in this
9    Section.
10        No later than June 30, 2019, the Commission shall
11    review the limitation on the amount of zero emission
12    credits procured under this subsection (d-5) and report to
13    the General Assembly its findings as to whether that
14    limitation unduly constrains the procurement of
15    cost-effective zero emission credits.
16        (3) Six years after the execution of a contract under
17    this subsection (d-5), the Agency shall determine whether
18    the actual zero emission credit payments received by the
19    supplier over the 6-year period exceed the Average ZEC
20    Payment. In addition, at the end of the term of a contract
21    executed under this subsection (d-5), or at the time, if
22    any, a zero emission facility's contract is terminated
23    under subparagraph (E) of paragraph (1) of this subsection
24    (d-5), then the Agency shall determine whether the actual
25    zero emission credit payments received by the supplier
26    over the term of the contract exceed the Average ZEC

 

 

SB2248- 157 -LRB102 17406 SPS 22899 b

1    Payment, after taking into account any amounts previously
2    credited back to the utility under this paragraph (3). If
3    the Agency determines that the actual zero emission credit
4    payments received by the supplier over the relevant period
5    exceed the Average ZEC Payment, then the supplier shall
6    credit the difference back to the utility. The amount of
7    the credit shall be remitted to the applicable electric
8    utility no later than 120 days after the Agency's
9    determination, which the utility shall reflect as a credit
10    on its retail customer bills as soon as practicable;
11    however, the credit remitted to the utility shall not
12    exceed the total amount of payments received by the
13    facility under its contract.
14        For purposes of this Section, the Average ZEC Payment
15    shall be calculated by multiplying the quantity of zero
16    emission credits delivered under the contract times the
17    average contract price. The average contract price shall
18    be determined by subtracting the amount calculated under
19    subparagraph (B) of this paragraph (3) from the amount
20    calculated under subparagraph (A) of this paragraph (3),
21    as follows:
22            (A) The average of the Social Cost of Carbon, as
23        defined in subparagraph (B) of paragraph (1) of this
24        subsection (d-5), during the term of the contract.
25            (B) The average of the market price indices, as
26        defined in subparagraph (B) of paragraph (1) of this

 

 

SB2248- 158 -LRB102 17406 SPS 22899 b

1        subsection (d-5), during the term of the contract,
2        minus the baseline market price index, as defined in
3        subparagraph (B) of paragraph (1) of this subsection
4        (d-5).
5        If the subtraction yields a negative number, then the
6    Average ZEC Payment shall be zero.
7        (4) Cost-effective zero emission credits procured from
8    zero emission facilities shall satisfy the applicable
9    definitions set forth in Section 1-10 of this Act.
10        (5) The electric utility shall retire all zero
11    emission credits used to comply with the requirements of
12    this subsection (d-5).
13        (6) Electric utilities shall be entitled to recover
14    all of the costs associated with the procurement of zero
15    emission credits through an automatic adjustment clause
16    tariff in accordance with subsection (k) and (m) of
17    Section 16-108 of the Public Utilities Act, and the
18    contracts executed under this subsection (d-5) shall
19    provide that the utilities' payment obligations under such
20    contracts shall be reduced if an adjustment is required
21    under subsection (m) of Section 16-108 of the Public
22    Utilities Act.
23        (7) This subsection (d-5) shall become inoperative on
24    January 1, 2028.
25    (e) The draft procurement plans are subject to public
26comment, as required by Section 16-111.5 of the Public

 

 

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1Utilities Act.
2    (f) The Agency shall submit the final procurement plan to
3the Commission. The Agency shall revise a procurement plan if
4the Commission determines that it does not meet the standards
5set forth in Section 16-111.5 of the Public Utilities Act.
6    (g) The Agency shall assess fees to each affected utility
7to recover the costs incurred in preparation of the annual
8procurement plan for the utility.
9    (h) The Agency shall assess fees to each bidder to recover
10the costs incurred in connection with a competitive
11procurement process.
12    (i) A renewable energy credit, carbon emission credit, or
13zero emission credit can only be used once to comply with a
14single portfolio or other standard as set forth in subsection
15(c), subsection (d), or subsection (d-5) of this Section,
16respectively. A renewable energy credit, carbon emission
17credit, or zero emission credit cannot be used to satisfy the
18requirements of more than one standard. If more than one type
19of credit is issued for the same megawatt hour of energy, only
20one credit can be used to satisfy the requirements of a single
21standard. After such use, the credit must be retired together
22with any other credits issued for the same megawatt hour of
23energy.
24    (j) Renewable energy supply.
25        (1) Beginning with the energy to be delivered in the
26    delivery year commencing on June 1, 2023, the Agency shall

 

 

SB2248- 160 -LRB102 17406 SPS 22899 b

1    assess the feasibility of procuring cost-effective,
2    long-term contracts for energy supply from renewable
3    energy projects, in accordance with the requirements of
4    Section 16-111.5 of the Public Utilities Act for the
5    eligible retail customers of electric utilities that on
6    December 31, 2005 provided electric service to at least
7    100,000 customers in Illinois.
8        (2) Long-term contracts as described in this
9    subsection (j) shall refer to contracts that are
10    preferably no less than a 15-year period, but in no case
11    less than a 5-year period.
12        (3) The Agency shall evaluate energy supply
13    procurements that enable greater achievement, or more
14    cost-effective achievement, of the renewable energy goals
15    in this Section, including through coordination or
16    bundling with procurements of renewable energy credits, or
17    capacity from renewable energy resources, as provided
18    under subparagraph (P) of subsection (c) of this Section,
19    or capacity from renewable energy resources, as provided
20    under subsection (k) of this Section.
21        (4) The Agency shall include in its annual procurement
22    plan the results of this assessment and any recommended
23    procurements. The Agency shall, at a minimum, reevaluate
24    its assessment every 3 years, incorporating new
25    information from updated data, including, but not limited
26    to, the results of its procurements, competitive market

 

 

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1    trends, and energy procurements in other states.
2    (k) Capacity procurement.
3        (1) This Section grants the Illinois Power Agency the
4    sole authority to conduct auctions for the purpose of
5    procuring capacity if a public utility in the State elects
6    to use the Fixed Resource Requirement Alternative as
7    provided for in the Open Access Transmission Tariff,
8    Reliability Assurance Agreement, and manuals of PJM
9    Interconnection, LLC or its successors, and that election
10    is approved by the Illinois Commerce Commission. Where the
11    election is approved by the Illinois Commerce Commission,
12    the Illinois Power Agency shall develop a procurement plan
13    for the procurement of capacity in amounts necessary to
14    ensure the public utility's resource adequacy pursuant to
15    PJM's federally-mandated requirements. The Agency is
16    authorized to conduct Capacity Procurement auctions as
17    necessary to meet the public utility's resource
18    obligations while achieving the objectives set forth in
19    this Section for the duration of the public utility's
20    election of the Fixed Resource Requirement Alternative.
21        (2) The draft procurement plan is subject to public
22    comment, as required by Section 16-111.5 of the Public
23    Utilities Act.
24        (3) The Agency shall design the Capacity Procurement
25    Plan to achieve the following objectives:
26            (i) Through one or more auctions which procure

 

 

SB2248- 162 -LRB102 17406 SPS 22899 b

1        capacity for one or more years, meets the public
2        utility's resource obligation under the Fixed Resource
3        Requirement Alternative while maximizing benefits that
4        meet the State's public interest in the health, safety
5        and welfare of its residents, including, but not
6        limited to: significantly reduced emissions in the
7        State from power generation sources; consumer savings;
8        and those interests described in subparagraph (I) of
9        paragraph (1) of subsection (c) of Section 1-75 of the
10        Illinois Power Agency Act.
11            (ii) Implements a limiter on auction payments to
12        all resources that are not renewable energy resources,
13        demand response, or energy efficiency resources. The
14        limiter shall be imposed on all other resources such
15        that total payments under the auction ensure consumer
16        savings at an amount no less than 5% below a baseline
17        of previous years' payments.
18            (iii) Implements a limiter on participating
19        carbon-emitting resources such that emissions decrease
20        below a baseline of previous years' emissions.
21        (4) As part of its Capacity Procurement plans, the
22    Agency may implement an auction for an optional bundled
23    product which includes payments to resources that provide
24    both capacity and renewable energy credits. Renewable
25    energy resources that are not eligible to participate in
26    auctions pursuant to subparagraph (J) of paragraph (1) of

 

 

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1    subsection (c) of Section 1-75 of the Illinois Power
2    Agency Act are not eligible to participate in auctions
3    conducted to implement Capacity Procurement plans.
4(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
5101-113, eff. 1-1-20.)
 
6    Section 15. The Public Utilities Act is amended by
7changing Sections 16-107.5, 16-107.6, 16-108, and 16-111.5 and
8by adding Sections 8-512 and 16-131 as follows:
 
9    (220 ILCS 5/8-512 new)
10    Sec. 8-512. Renewable energy access plan.
11    (a) It is the policy of this State to promote
12cost-effective transmission system development that ensures
13reliability of the electric transmission system, lowers carbon
14emissions, minimizes long-term costs for consumers, and
15supports the electric policy goals of this State.
16    The General Assembly finds that:
17        (1) Transmission planning, primarily for reliability
18    purposes, but also for economic and public policy reasons
19    is conducted by regional transmission organizations in
20    which transmission-owning Illinois utilities and other
21    stakeholders are members.
22        (2) Order No. 1000 of the Federal Energy Regulatory
23    Commission requires regional transmission organizations to
24    plan for transmission system needs in light of state

 

 

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1    public policies, and to accept input from states during
2    the transmission system planning processes.
3        (3) The State of Illinois does not currently have a
4    comprehensive power and environmental policy planning
5    process to identify transmission infrastructure needs that
6    can serve as a vital input into the regional and
7    inter-regional transmission organization planning
8    processes conducted under Order No. 1000 and other laws.
9        (4) This State is an electricity generation and power
10    transmission hub, and can leverage that position to invest
11    in infrastructure that enables new and existing Illinois
12    generators to meet the public policy goals of the State of
13    Illinois and of interconnected states while
14    cost-effectively supporting tens of thousands of jobs in
15    the renewable energy sector in this State.
16        (5) The nation cannot readily access this State's
17    low-cost, clean electric power, and this State is hindered
18    in its ability to develop and support its low-carbon
19    economy and keep electricity prices low in Illinois and
20    interconnected states.
21        (6) Existing transmission infrastructure may constrain
22    the State's achievement of 100% renewable energy by 2050,
23    a carbon-free power sector by 2030, and an expanded use of
24    electric vehicles in a just and equitable way.
25        (7) Transmission system congestion within this State
26    and the regional transmission organizations serving this

 

 

SB2248- 165 -LRB102 17406 SPS 22899 b

1    State limits the ability of this State's existing and new
2    electric generation facilities that do not emit carbon
3    dioxide, including renewable energy resources and zero
4    emission facilities, to serve the public policy goals of
5    this State and other states, which constrains investment
6    in this State.
7        (8) Investment in infrastructure to support existing
8    and new electric generation facilities that do not emit
9    carbon dioxide, including renewable energy resources and
10    zero emission facilities, stimulates significant economic
11    development and job growth in this State, as well as
12    creates environmental and public health benefits in this
13    State.
14        (9) Creating a forward-looking plan for this State's
15    electric transmission infrastructure, as opposed to
16    relying on case-by-case development and repeated marginal
17    upgrades, will achieve a lower-cost system for Illinois'
18    electricity customers. A forward-looking plan can also
19    help integrate and achieve a comprehensive set of
20    objectives and multiple state, regional, and national
21    policy goals.
22        (10) Alternatives to overhead electric transmission
23    lines can achieve cost-effective resolution of system
24    impacts, and warrant investigation of the circumstances
25    those alternatives should be considered and approved. The
26    alternatives are likely to be beneficial as investment in

 

 

SB2248- 166 -LRB102 17406 SPS 22899 b

1    electric transmission infrastructure moves forward.
2    (b) Consistent with the findings identified in subsection
3(a), the Commission shall open an investigation to deliberate,
4develop, and adopt a renewable energy access plan no later
5than December 31, 2022. To assist and support the Commission
6in the development of the plan, the Commission shall retain
7the services of technical and policy experts with relevant
8fields of expertise, solicit technical and policy analysis
9from the public, and provide for a 120-day open public comment
10period after publication of a draft report, which shall be
11published no later than 90 days after the comment period ends.
12The plan shall, at a minimum, do the following:
13        (1) designate renewable energy access plan zones
14    throughout this State in areas in which renewable energy
15    resources and suitable land areas are sufficient to
16    develop generating capacity from renewable energy
17    technologies;
18        (2) develop a plan to achieve transmission capacity
19    necessary to deliver to electric customers in Illinois and
20    other states, in a manner that is most beneficial and
21    cost-effective to the customers, the electric output from
22    renewable energy technologies in the renewable energy
23    access plan zones;
24        (3) use this State's position as an electricity
25    generation and power transmission hub to create new
26    investment in this State's renewable energy resources;

 

 

SB2248- 167 -LRB102 17406 SPS 22899 b

1        (4) introduce and consider programs, policies, and
2    electric transmission projects that can be adopted within
3    this State and advocated for at regional transmission
4    organizations, that promote the cost-effective delivery of
5    power from renewable energy resources interconnected to
6    the bulk electric system to meet the renewable portfolio
7    standard targets under subsection (c) of Section 1-75 of
8    the Illinois Power Agency Act, and to meet current and
9    future public policy goals of other states, the region, or
10    the nation;
11        (5) introduce and consider proposals to improve
12    regional transmission organizations' regional and
13    interregional system planning processes and an analysis of
14    how those proposals would improve reliability and
15    cost-effective delivery of electricity in Illinois and the
16    region;
17        (6) the Commission's specific findings, based on
18    technical and policy analysis, regarding locations of
19    renewable energy access plan zones, the transmission
20    system developments needed to cost-effectively achieve the
21    public policy goals identified herein, any recommended
22    policies to initiate within this State, or recommended
23    advocacy at regional transmission organizations; and
24        (7) the Commission's conclusions and proposed
25    recommendations based on its analysis.
26    (c) No later than December 31, 2025, and in each

 

 

SB2248- 168 -LRB102 17406 SPS 22899 b

1odd-numbered year thereafter, the Commission shall open an
2investigation to deliberate, develop, and adopt an updated
3renewable energy access plan that, at a minimum, evaluates the
4implementation and effectiveness of the renewable energy
5access plan, recommends improvements to the renewable energy
6access plan, and provides changes to transmission capacity
7necessary to deliver electric output from the renewable energy
8access plan zones.
 
9    (220 ILCS 5/16-107.5)
10    Sec. 16-107.5. Net electricity metering.
11    (a) The General Assembly Legislature finds and declares
12that a program to provide net electricity metering, as defined
13in this Section, for eligible customers can encourage private
14investment in renewable energy resources, stimulate economic
15growth, enhance the continued diversification of Illinois'
16energy resource mix, and protect the Illinois environment. The
17General Assembly further finds and declares that ensuring a
18smooth, predictable transition from full net metering of the
19retail electricity rate to the distributed generation rebate
20described in Section 16-107.6 of this Act is important to
21achieve these legislative goals. In implementing the
22investigation discussed in subsection (e) of Section 16-107.6
23of this Act and the transition discussed in subsection (n) of
24this Section 16-107.5, the Commission shall ensure that
25distributed generation customers are fairly compensated for

 

 

SB2248- 169 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 170 -LRB102 17406 SPS 22899 b

1customers for the purpose of this Section, including
2subscribers to community renewable generation projects that
3are larger than 2,000 kilowatts. ; (iii) "electricity provider"
4means an electric utility or alternative retail electric
5supplier;
6    (iv) "Eligible eligible renewable electrical generating
7facility" means a generator, which may include the co-location
8of an energy storage system, that is interconnected under
9rules adopted by the Commission and is powered by solar
10electric energy, wind, dedicated crops grown for electricity
11generation, agricultural residues, untreated and unadulterated
12wood waste, landscape trimmings, livestock manure, anaerobic
13digestion of livestock or food processing waste, fuel cells or
14microturbines powered by renewable fuels, or hydroelectric
15energy. ;
16    "Energy storage system" means commercially available
17technology that is capable of absorbing energy and storing it
18for a period of time for use at a later time, including, but
19not limited to, electrochemical, thermal, and
20electromechanical technologies, and may be interconnected on
21the customer's side of the billing meter or interconnected via
22its own meter.
23    "Future electrical requirements" means the reasonable
24anticipation of load growth, such as from the addition of an
25electric vehicle, the addition of electric space heating or
26water heating, modeled electrical requirements upon occupation

 

 

SB2248- 171 -LRB102 17406 SPS 22899 b

1of a new or vacant property, as well as other reasonable
2expectations of future electrical use.
3    (v) "Net net electricity metering" (or "net metering")
4means the measurement, during the billing period applicable to
5an eligible customer, of the net amount of electricity
6supplied by an electricity provider to the customer customer's
7premises or provided to the electricity provider by the
8customer or subscriber. ;
9    "Statewide net metering penetration" means the sum of
10nameplate capacity of all net metering facilities in the
11State, excluding community renewable generation projects,
12divided by the sum of peak demand of electricity delivered by
13each delivery service provider (with the peak identified
14independently for each provider) in the State during the
15previous year.
16    (vi) "Subscriber subscriber" has shall have the meaning as
17set forth in Section 1-10 of the Illinois Power Agency Act. ;
18and
19    (vii) "Subscription subscription" has shall have the
20meaning set forth in Section 1-10 of the Illinois Power Agency
21Act.
22    (c) A net metering facility shall be equipped with
23metering equipment that can measure the flow of electricity in
24both directions at the same rate.
25        (1) For eligible customers whose electric service has
26    not been declared competitive pursuant to Section 16-113

 

 

SB2248- 172 -LRB102 17406 SPS 22899 b

1    of this Act as of July 1, 2011 and whose electric delivery
2    service is provided and measured on a kilowatt-hour basis
3    and electric supply service is not provided based on
4    hourly pricing, this shall typically be accomplished
5    through use of a single, bi-directional meter. If the
6    eligible customer's existing electric revenue meter does
7    not meet this requirement, the electricity provider shall
8    arrange for the local electric utility or a meter service
9    provider to install and maintain a new revenue meter at
10    the electricity provider's expense, which may be the smart
11    meter described by subsection (b) of Section 16-108.5 of
12    this Act.
13        (2) For eligible customers whose electric service has
14    not been declared competitive pursuant to Section 16-113
15    of this Act as of July 1, 2011 and whose electric delivery
16    service is provided and measured on a kilowatt demand
17    basis and electric supply service is not provided based on
18    hourly pricing, this shall typically be accomplished
19    through use of a dual channel meter capable of measuring
20    the flow of electricity both into and out of the
21    customer's facility at the same rate and ratio. If such
22    customer's existing electric revenue meter does not meet
23    this requirement, then the electricity provider shall
24    arrange for the local electric utility or a meter service
25    provider to install and maintain a new revenue meter at
26    the electricity provider's expense, which may be the smart

 

 

SB2248- 173 -LRB102 17406 SPS 22899 b

1    meter described by subsection (b) of Section 16-108.5 of
2    this Act.
3        (3) For all other eligible customers, until such time
4    as the local electric utility installs a smart meter, as
5    described by subsection (b) of Section 16-108.5 of this
6    Act, the electricity provider may arrange for the local
7    electric utility or a meter service provider to install
8    and maintain metering equipment capable of measuring the
9    flow of electricity both into and out of the customer's
10    facility at the same rate and ratio, typically through the
11    use of a dual channel meter. If the eligible customer's
12    existing electric revenue meter does not meet this
13    requirement, then the costs of installing such equipment
14    shall be paid for by the customer.
15    (d) An electricity provider shall measure and charge or
16credit for the net electricity supplied to eligible customers
17or provided by eligible customers whose electric service has
18not been declared competitive pursuant to Section 16-113 of
19this Act as of July 1, 2011 and whose electric delivery service
20is provided and measured on a kilowatt-hour basis and electric
21supply service is not provided based on hourly pricing in the
22following manner:
23        (1) If the amount of electricity used by the customer
24    during the billing period exceeds the amount of
25    electricity produced by the customer, the electricity
26    provider shall charge the customer for the net electricity

 

 

SB2248- 174 -LRB102 17406 SPS 22899 b

1    supplied to and used by the customer as provided in
2    subsection (e-5) of this Section.
3        (2) If the amount of electricity produced by a
4    customer during the billing period exceeds the amount of
5    electricity used by the customer during that billing
6    period, the electricity provider supplying that customer
7    shall apply a 1:1 kilowatt-hour credit to a subsequent
8    bill for service to the customer for the net electricity
9    supplied to the electricity provider. The electricity
10    provider shall continue to carry over any excess
11    kilowatt-hour credits earned and apply those credits to
12    subsequent billing periods to offset any
13    customer-generator consumption in those billing periods
14    until all credits are used or until the end of the
15    annualized period.
16        (3) At the end of the year or annualized over the
17    period that service is supplied by means of net metering,
18    or in the event that the retail customer terminates
19    service with the electricity provider prior to the end of
20    the year or the annualized period, any remaining credits
21    in the customer's account shall expire.
22    (d-5) An electricity provider shall measure and charge or
23credit for the net electricity supplied to eligible customers
24or provided by eligible customers whose electric service has
25not been declared competitive pursuant to Section 16-113 of
26this Act as of July 1, 2011 and whose electric delivery service

 

 

SB2248- 175 -LRB102 17406 SPS 22899 b

1is provided and measured on a kilowatt-hour basis and electric
2supply service is provided based on hourly pricing or
3time-of-use rates in the following manner:
4        (1) If the amount of electricity used by the customer
5    during any hourly or time-of-use period exceeds the amount
6    of electricity produced by the customer, the electricity
7    provider shall charge the customer for the net electricity
8    supplied to and used by the customer according to the
9    terms of the contract or tariff to which the same customer
10    would be assigned to or be eligible for if the customer was
11    not a net metering customer.
12        (2) If the amount of electricity produced by a
13    customer during any hourly period or time-of-use period
14    exceeds the amount of electricity used by the customer
15    during that hourly period or time-of-use period, the
16    energy provider shall apply a credit for the net
17    kilowatt-hours produced in such period. The credit shall
18    consist of an energy credit and a delivery service credit.
19    The energy credit shall be valued at the same price per
20    kilowatt-hour as the electric service provider would
21    charge for kilowatt-hour energy sales during that same
22    hourly or time-of-use period. The delivery credit shall be
23    equal to the net kilowatt-hours produced in such hourly or
24    time-of-use period times a credit that reflects all
25    kilowatt-hour based charges in the customer's electric
26    service rate, excluding energy charges.

 

 

SB2248- 176 -LRB102 17406 SPS 22899 b

1    (e) An electricity provider shall measure and charge or
2credit for the net electricity supplied to eligible customers
3whose electric service has not been declared competitive
4pursuant to Section 16-113 of this Act as of July 1, 2011 and
5whose electric delivery service is provided and measured on a
6kilowatt demand basis and electric supply service is not
7provided based on hourly pricing in the following manner:
8        (1) If the amount of electricity used by the customer
9    during the billing period exceeds the amount of
10    electricity produced by the customer, then the electricity
11    provider shall charge the customer for the net electricity
12    supplied to and used by the customer as provided in
13    subsection (e-5) of this Section. The customer shall
14    remain responsible for all taxes, fees, and utility
15    delivery charges that would otherwise be applicable to the
16    net amount of electricity used by the customer.
17        (2) If the amount of electricity produced by a
18    customer during the billing period exceeds the amount of
19    electricity used by the customer during that billing
20    period, then the electricity provider supplying that
21    customer shall apply a 1:1 kilowatt-hour credit that
22    reflects the kilowatt-hour based charges in the customer's
23    electric service rate to a subsequent bill for service to
24    the customer for the net electricity supplied to the
25    electricity provider. The electricity provider shall
26    continue to carry over any excess kilowatt-hour credits

 

 

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1    earned and apply those credits to subsequent billing
2    periods to offset any customer-generator consumption in
3    those billing periods until all credits are used or until
4    the end of the annualized period.
5        (3) At the end of the year or annualized over the
6    period that service is supplied by means of net metering,
7    or in the event that the retail customer terminates
8    service with the electricity provider prior to the end of
9    the year or the annualized period, any remaining credits
10    in the customer's account shall expire.
11    (e-5) An electricity provider shall provide electric
12service to eligible customers who utilize net metering at
13non-discriminatory rates that are identical, with respect to
14rate structure, retail rate components, and any monthly
15charges, to the rates that the customer would be charged if not
16a net metering customer. An electricity provider shall not
17charge net metering customers any fee or charge or require
18additional equipment, insurance, or any other requirements not
19specifically authorized by interconnection standards
20authorized by the Commission, unless the fee, charge, or other
21requirement would apply to other similarly situated customers
22who are not net metering customers. The customer will remain
23responsible for all taxes, fees, and utility delivery charges
24that would otherwise be applicable to the net amount of
25electricity used by the customer. Subsections (c) through (e)
26of this Section shall not be construed to prevent an

 

 

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1arms-length agreement between an electricity provider and an
2eligible customer that sets forth different prices, terms, and
3conditions for the provision of net metering service,
4including, but not limited to, the provision of the
5appropriate metering equipment for non-residential customers.
6    (f) Notwithstanding the requirements of subsections (c)
7through (e-5) of this Section, an electricity provider must
8require dual-channel metering for customers operating eligible
9renewable electrical generating facilities with a nameplate
10rating up to 2,000 kilowatts and to whom the provisions of
11neither subsection (d), (d-5), nor (e) of this Section apply.
12In such cases, electricity charges and credits shall be
13determined as follows:
14        (1) The electricity provider shall assess and the
15    customer remains responsible for all taxes, fees, and
16    utility delivery charges that would otherwise be
17    applicable to the gross amount of kilowatt-hours supplied
18    to the eligible customer by the electricity provider.
19        (2) Each month that service is supplied by means of
20    dual-channel metering, the electricity provider shall
21    compensate the eligible customer for any excess
22    kilowatt-hour credits at the electricity provider's
23    avoided cost of electricity supply over the monthly period
24    or as otherwise specified by the terms of a power-purchase
25    agreement negotiated between the customer and electricity
26    provider.

 

 

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1        (3) For all eligible net metering customers taking
2    service from an electricity provider under contracts or
3    tariffs employing hourly or time of use rates, any monthly
4    consumption of electricity shall be calculated according
5    to the terms of the contract or tariff to which the same
6    customer would be assigned to or be eligible for if the
7    customer was not a net metering customer. When those same
8    customer-generators are net generators during any discrete
9    hourly or time of use period, the net kilowatt-hours
10    produced shall be valued at the same price per
11    kilowatt-hour as the electric service provider would
12    charge for retail kilowatt-hour sales during that same
13    time of use period.
14    (g) For purposes of federal and State laws providing
15renewable energy credits or greenhouse gas credits, the
16eligible customer shall be treated as owning and having title
17to the renewable energy attributes, renewable energy credits,
18and greenhouse gas emission credits related to any electricity
19produced by the qualified generating unit. The electricity
20provider may not condition participation in a net metering
21program on the signing over of a customer's renewable energy
22credits; provided, however, this subsection (g) shall not be
23construed to prevent an arms-length agreement between an
24electricity provider and an eligible customer that sets forth
25the ownership or title of the credits.
26    (h) Within 120 days after the effective date of this

 

 

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1amendatory Act of the 95th General Assembly, the Commission
2shall establish standards for net metering and, if the
3Commission has not already acted on its own initiative,
4standards for the interconnection of eligible renewable
5generating equipment to the utility system. The
6interconnection standards shall address any procedural
7barriers, delays, and administrative costs associated with the
8interconnection of customer-generation while ensuring the
9safety and reliability of the units and the electric utility
10system. The Commission shall consider the Institute of
11Electrical and Electronics Engineers (IEEE) Standard 1547 and
12the issues of (i) reasonable and fair fees and costs, (ii)
13clear timelines for major milestones in the interconnection
14process, (iii) nondiscriminatory terms of agreement, and (iv)
15any best practices for interconnection of distributed
16generation.
17    (h-3) On and after the effective date of this amendatory
18Act of the 102nd General Assembly, it is the policy of the
19State that:
20        (1) Electric utilities must provide interconnection
21    customers with a detailed accounting of the components of
22    the utility's cost to study and perform system upgrades,
23    with itemized lists of equipment costs, labor costs,
24    engineering costs, and administrative costs associated
25    with the study or system upgrade.
26        (2) An electric utility that has failed to meet an

 

 

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1    interconnection timeline by more than 20 days is subject
2    to a penalty of $1,000 for each day over 20 days past the
3    applicable date upon which the utility action was due.
4        (3) The Illinois Commerce Commission shall, within 60
5    days after the effective date of this amendatory Act of
6    the 102nd General Assembly, hire or contract with an
7    independent grid engineer to address delays and disputes
8    between the utility and the interconnection customer.
9    Specifically, this independent engineer shall:
10            (A) review utility cost estimates at the request
11        of interconnection customers;
12            (B) resolve technical disputes between utilities
13        and interconnection customers regarding necessary
14        upgrades and costs thereof;
15            (C) authorize customers to self-supply
16        interconnection studies when the electric utility is
17        unable to provide such studies at a reasonable cost
18        and schedule; and
19            (D) authorize customers to self-build system
20        upgrades consistent with electric utility standards
21        when the electric utility cannot provide such upgrades
22        and interconnection facilities at a reasonable cost
23        and schedule.
24        The process to hire or contract with an independent
25    grid engineer described in this paragraph (3) is exempt
26    from the requirements of the Illinois Procurement Code,

 

 

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1    pursuant to Section 20-10 of that Code.
2    (h-5) Within 90 days after the effective date of this
3amendatory Act of the 102nd General Assembly, the Commission
4shall open a proceeding to update the interconnection
5standards and applicable utility tariffs. For the public
6interest, safety, and welfare of Illinois residents, the
7Commission may adopt emergency rules under Section 5-45 of the
8Illinois Administrative Procedure Act to implement the
9requirements of subsection (h-3) and this subsection (h-5). In
10addition to the requirements of subsection (h-3), the
11Commission shall also revise the standards to address critical
12standards for interconnection and the following issues:
13        (1) transparency and accuracy of costs, both direct
14    and indirect, while maintaining system security through
15    the effective management of confidentiality agreements;
16        (2) standardization of typical costs associated with
17    interconnection;
18        (3) transparency of the interconnection queue or
19    queues and hosting capacity;
20        (4) development of hosting capacity maps that enable
21    greater visibility to customers about the locations with
22    the greatest need or availability for distributed
23    generation;
24        (5) predictability of the queue management process and
25    enforcement of timelines;
26        (6) ability to undertake group interconnection studies

 

 

SB2248- 183 -LRB102 17406 SPS 22899 b

1    and share interconnection costs among multiple applicants;
2        (7) minimum requirements for application to the
3    interconnection process and throughout the interconnection
4    process to avoid queue clogging behavior;
5        (8) requirements that the electric utility performing
6    the interconnection study justify its interconnection
7    study cost and the estimates of costs for identified
8    upgrades, and to cap payments required by the
9    interconnection customer for the electric utility
10    installed facilities to the lesser of +50% of the
11    Feasibility Study estimate, +25% of the System Impact
12    Study estimate, or +10% of the Facilities Study estimate;
13        (9) facilitation of the deployment of energy storage
14    systems while ensuring the continued grid safety and
15    reliability of the system, including addressing the
16    following:
17            (A) treatment of energy storage systems as
18        generation for purposes of the interconnection,
19        ownership, and operation;
20            (B) fair study assumptions that reflect the
21        operational profile of the energy storage device;
22            (C) streamlined notification-only interconnection
23        requirements for nonexporting systems that meet
24        utility criteria for safety and reliability, as is
25        determined through a robust stakeholder process; and
26            (D) enabling exports from customer-sited energy

 

 

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1        storage systems for participation either in utility
2        programs or wholesale markets;
3        (10) establishment of a dispute resolution process
4    designed to address instances of unreasonable impediments
5    by the electric utility to the critical standards for
6    interconnection enumerated in paragraphs (1) through (9)
7    of this subsection (h-5). The Commission shall make
8    available adequate Commission staff for this dispute
9    resolution process to ensure that matters are decided on
10    an expedited basis; and
11        (11) other policies, processes, tariffs, and standards
12    associated with interconnection, including the creation of
13    standards and processes that support the achievement of
14    the objectives in subparagraph (K) of paragraph (1) of
15    subsection (c) of Section 1-75 of the Illinois Power
16    Agency Act
17    As part of this proceeding initiated under this subsection
18(h-5), the Commission shall establish an interconnection
19working group. The working group shall include representatives
20from electric utilities, developers of renewable electric
21generating facilities, representatives of interconnection
22customers, Commission staff, and other stakeholders. The
23working group shall be facilitated by Commission staff. The
24working group shall examine and make recommendations regarding
25best practices for interconnection process and customer
26service for interconnecting customer adopting distributed

 

 

SB2248- 185 -LRB102 17406 SPS 22899 b

1energy resources, including energy storage, interconnection of
2new technologies, including smart inverters and energy
3storage, and, without limitation, other technical, policy, and
4tariff issues related to and affecting interconnection
5performance and customer service.
6    The working group shall report to the Commission on
7changes to interconnection rules and tariffs and any other
8recommendations as determined by the working group within 6
9months after its first meeting. The report shall include
10positions and recommendations of the working group and
11individual working group members. The report of the working
12group shall be entered into evidence in the rulemaking process
13mandated by this subsection (h-5). The working group shall be
14reconvened one year following the enactment of the rules
15adopted pursuant to this subsection (h-5) to recommend any
16additional changes and assess the performance of the rules in
17meeting the goals as described above.
18    (i) All electricity providers shall begin to offer net
19metering no later than April 1, 2008.
20    (j) An electricity provider shall provide net metering to
21eligible customers until both of the following occur: (i) the
22statewide net metering penetration equals 5% and (ii) the
23Commission approves the utility tariffs prescribed by
24subsection (e) of Section 16-107.6 of this Act that make
25distributed generation rebates available to all eligible
26customers, including residential customers, and those tariffs

 

 

SB2248- 186 -LRB102 17406 SPS 22899 b

1go into effect. After that time the load of its net metering
2customers equals 5% of the total peak demand supplied by that
3electricity provider during the previous year. After such time
4as the load of the electricity provider's net metering
5customers equals 5% of the total peak demand supplied by that
6electricity provider during the previous year, eligible
7customers that begin taking net metering shall no longer be
8eligible for netting of delivery service credits as described
9in subsection (n) of this Section only be eligible for netting
10of energy.
11    (k) Each electricity provider shall maintain records and
12report annually to the Commission the total number of net
13metering customers served by the provider, as well as the
14type, capacity, and energy sources of the generating systems
15used by the net metering customers. Nothing in this Section
16shall limit the ability of an electricity provider to request
17the redaction of information deemed by the Commission to be
18confidential business information.
19    (l)(1) Notwithstanding the definition of "eligible
20customer" in item (ii) of subsection (b) of this Section, each
21electricity provider shall allow net metering as set forth in
22this subsection (l) and for the following projects:
23        (A) properties owned or leased by multiple customers
24    that contribute to the operation of an eligible renewable
25    electrical generating facility through an ownership or
26    leasehold interest of at least 200 watts in such facility,

 

 

SB2248- 187 -LRB102 17406 SPS 22899 b

1    such as a community-owned wind project, a community-owned
2    biomass project, a community-owned solar project, or a
3    community methane digester processing livestock waste from
4    multiple sources, provided that the facility is also
5    located within the utility's service territory;
6        (B) individual units, apartments, or properties
7    located in a single building that are owned or leased by
8    multiple customers and collectively served by a common
9    eligible renewable electrical generating facility, such as
10    an office or apartment building, a shopping center or
11    strip mall served by photovoltaic panels on the roof; and
12        (C) subscriptions to community renewable generation
13    projects, including community renewable generation
14    projects on the customer's side of the billing meter of a
15    host facility and partially used for the customer's own
16    load.
17    In addition, the nameplate capacity of the eligible
18renewable electric generating facility that serves the demand
19of the properties, units, or apartments identified in
20paragraphs (1) and (2) of this subsection (l) shall not exceed
212,000 kilowatts in nameplate capacity in total. Any eligible
22renewable electrical generating facility or community
23renewable generation project that is powered by photovoltaic
24electric energy and installed after the effective date of this
25amendatory Act of the 99th General Assembly must be installed
26by a qualified person in compliance with the requirements of

 

 

SB2248- 188 -LRB102 17406 SPS 22899 b

1Section 16-128A of the Public Utilities Act and any rules or
2regulations adopted thereunder.
3    (2) Notwithstanding anything to the contrary, an
4electricity provider shall provide credits for the electricity
5produced by the projects described in paragraph (1) of this
6subsection (l). The electricity provider shall provide credits
7that include at least energy supply, capacity, transmission,
8and the purchased electricity adjustment, as applicable, at
9the subscriber's energy supply rate on the subscriber's
10monthly bill equal to the subscriber's share of the production
11of electricity from the project, as determined by paragraph
12(3) of this subsection (l).
13    (3) For the purposes of facilitating net metering, the
14owner or operator of the eligible renewable electrical
15generating facility or community renewable generation project
16shall be responsible for determining the amount of the credit
17that each customer or subscriber participating in a project
18under this subsection (l) is to receive in the following
19manner:
20        (A) The owner or operator shall, on a monthly basis,
21    provide to the electric utility the kilowatthours of
22    generation attributable to each of the utility's retail
23    customers and subscribers participating in projects under
24    this subsection (l) in accordance with the customer's or
25    subscriber's share of the eligible renewable electric
26    generating facility's or community renewable generation

 

 

SB2248- 189 -LRB102 17406 SPS 22899 b

1    project's output of power and energy for such month. The
2    owner or operator shall electronically transmit such
3    calculations and associated documentation to the electric
4    utility, in a format or method set forth in the applicable
5    tariff, on a monthly basis so that the electric utility
6    can reflect the monetary credits on customers' and
7    subscribers' electric utility bills. The electric utility
8    shall be permitted to revise its tariffs to implement the
9    provisions of this amendatory Act of the 102nd General
10    Assembly this amendatory Act of the 99th General Assembly.
11    The owner or operator shall separately provide the
12    electric utility with the documentation detailing the
13    calculations supporting the credit in the manner set forth
14    in the applicable tariff.
15        (B) For those participating customers and subscribers
16    who receive their energy supply from an alternative retail
17    electric supplier, the electric utility shall remit to the
18    applicable alternative retail electric supplier the
19    information provided under subparagraph (A) of this
20    paragraph (3) for such customers and subscribers in a
21    manner set forth in such alternative retail electric
22    supplier's net metering program, or as otherwise agreed
23    between the utility and the alternative retail electric
24    supplier. The alternative retail electric supplier shall
25    then submit to the utility the amount of the charges for
26    power and energy to be applied to such customers and

 

 

SB2248- 190 -LRB102 17406 SPS 22899 b

1    subscribers, including the amount of the credit associated
2    with net metering.
3        (C) A participating customer or subscriber may provide
4    authorization as required by applicable law that directs
5    the electric utility to submit information to the owner or
6    operator of the eligible renewable electrical generating
7    facility or community renewable generation project to
8    which the customer or subscriber has an ownership or
9    leasehold interest or a subscription. Such information
10    shall be limited to the components of the net metering
11    credit calculated under this subsection (l), including the
12    bill credit rate, total kilowatthours, and total monetary
13    credit value applied to the customer's or subscriber's
14    bill for the monthly billing period.
15    For community renewable generation projects located behind
16the meter of a host facility, the determination of the
17quantity of energy eligible for crediting to participating
18customers or subscribers of the community renewable generation
19project shall be based on any energy production of the project
20that exceeds the host's instantaneous on-site consumption
21during the applicable billing period.
22    (l-5) Within 90 days after the effective date of this
23amendatory Act of the 102nd General Assembly this amendatory
24Act of the 99th General Assembly, each electric utility
25subject to this Section shall file a tariff to implement the
26provisions of subsection (l) of this Section, which shall,

 

 

SB2248- 191 -LRB102 17406 SPS 22899 b

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

 

 

SB2248- 192 -LRB102 17406 SPS 22899 b

1eligible renewable generating facilities for which retail
2customers that are receiving net metering service under these
3subsections at the time the net metering services under those
4subsections are no longer offered; those systems shall
5continue to receive net metering services described in
6subsections (d), (d-5), (e), (e-5), and (f) of this Section
7for the lifetime of the system, regardless of whether those
8retail customers change electricity providers or whether the
9retail customer benefiting from the system changes. Those
10retail customers that begin taking net metering service after
11the date that net metering services are no longer offered
12under such subsections shall be subject to the provisions set
13forth in the following paragraphs (1) through (3) of this
14subsection (n):
15        (1) An electricity provider shall charge or credit for
16    the net electricity supplied to eligible customers or
17    provided by eligible customers whose electric supply
18    service is not provided based on hourly pricing in the
19    following manner:
20            (A) If the amount of electricity used by the
21        customer during the billing period exceeds the amount
22        of electricity produced by the customer, then the
23        electricity provider shall charge the customer for the
24        net kilowatt-hour based electricity charges reflected
25        in the customer's electric service rate supplied to
26        and used by the customer as provided in paragraph (3)

 

 

SB2248- 193 -LRB102 17406 SPS 22899 b

1        of this subsection (n).
2            (B) If the amount of electricity produced by a
3        customer during the billing period exceeds the amount
4        of electricity used by the customer during that
5        billing period, then the electricity provider
6        supplying that customer shall apply a 1:1
7        kilowatt-hour energy credit that reflects the
8        kilowatt-hour based energy charges in the customer's
9        electric service rate to a subsequent bill for service
10        to the customer for the net electricity supplied to
11        the electricity provider. The electricity provider
12        shall continue to carry over any excess kilowatt-hour
13        energy credits earned and apply those credits to
14        subsequent billing periods to offset any
15        customer-generator consumption in those billing
16        periods until all credits are used or until the end of
17        the annualized period.
18            (C) At the end of the year or annualized over the
19