SB2408 EnrolledLRB102 11366 BMS 16699 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 5. Energy Transition

 
5    Section 5-1. Short title. This Article may be cited as the
6Energy Transition Act. As used in this Article, "this Act"
7refers to this Article.
 
8    Section 5-5. Definitions. As used in this Act:
9    "Apprentice" means a participant in an apprenticeship
10program approved by and registered with the United States
11Department of Labor's Bureau of Apprenticeship and Training.
12    "Apprenticeship program" means an apprenticeship and
13training program approved by and registered with the United
14States Department of Labor's Bureau of Apprenticeship and
15Training.
16    "Black, indigenous, and people of color" or "BIPOC" means
17people who are members of the groups described in
18subparagraphs (a) through (e) of paragraph (A) of subsection
19(1) of Section 2 of the Business Enterprise for Minorities,
20Women, and Persons with Disabilities Act.
21    "Community-based organizations" means an organization
22that: (1) provides employment, skill development, or related

 

 

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1services to members of the community; (2) includes community
2colleges, nonprofits, and local governments; (3) has at least
3one main operating office in the community or region it
4serves; and (4) demonstrates relationships with local
5residents and other organizations serving the community.
6    "Department" means the Department of Commerce and Economic
7Opportunity, unless the text solely specifies a particular
8Department.
9    "Director" means the Director of Commerce and Economic
10Opportunity.
11    "Equity eligible contractor" or "eligible contractor"
12means:
13        (1) a business that is majority-owned by equity
14    investment eligible individuals or persons who are or have
15    been participants in the Clean Jobs Workforce Network
16    Program, Clean Energy Contractor Incubator Program,
17    Returning Residents Clean Jobs Training Program, Illinois
18    Climate Works Preapprenticeship Program, or Clean Energy
19    Primes Contractor Accelerator Program;
20        (2) a nonprofit or cooperative that is
21    majority-governed by equity investment eligible
22    individuals or persons who are or have been participants
23    in the Clean Jobs Workforce Network Program, Clean Energy
24    Contractor Incubator Program, Returning Residents Clean
25    Jobs Training Program, Illinois Climate Works
26    Preapprenticeship Program, or Clean Energy Primes

 

 

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1    Contractor Accelerator Program; or
2        (3) an equity investment eligible person or an
3    individual who is or has been a participant in the Clean
4    Jobs Workforce Network Program, Clean Energy Contractor
5    Incubator Program, Returning Residents Clean Jobs Training
6    Program, Illinois Climate Works Preapprenticeship Program,
7    or Clean Energy Primes Contractor Accelerator Program and
8    who is offering personal services as an independent
9    contractor.
10    "Equity focused populations" means (i) low-income persons;
11(ii) persons residing in equity investment eligible
12communities; (iii) persons who identify as black, indigenous,
13and people of color; (iv) formerly convicted persons; (v)
14persons who are or were in the child welfare system; (vi)
15energy workers; (vii) dependents of displaced energy workers;
16(viii) women; (ix) LGBTQ+, transgender, or gender
17nonconforming persons; (x) persons with disabilities; and (xi)
18members of any of these groups who are also youth.
19    "Equity investment eligible community" and "eligible
20community" are synonymous and mean the geographic areas
21throughout Illinois which would most benefit from equitable
22investments by the State designed to combat discrimination and
23foster sustainable economic growth. Specifically, the eligible
24community means the following areas:
25        (1) R3 Areas as established pursuant to Section 10-40
26    of the Cannabis Regulation and Tax Act, where residents

 

 

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1    have historically been excluded from economic
2    opportunities, including opportunities in the energy
3    sector; and
4        (2) Environmental justice communities, as defined by
5    the Illinois Power Agency pursuant to the Illinois Power
6    Agency Act, but excluding racial and ethnic indicators,
7    where residents have historically been subject to
8    disproportionate burdens of pollution, including pollution
9    from the energy sector.
10    "Equity investment eligible person" and "eligible person"
11are synonymous and mean the persons who would most benefit
12from equitable investments by the State designed to combat
13discrimination and foster sustainable economic growth.
14Specifically, eligible persons means the following people:
15        (1) persons whose primary residence is in an equity
16    investment eligible community;
17        (2) persons who are graduates of or currently enrolled
18    in the foster care system; or
19        (3) persons who were formerly incarcerated.
20    "Climate Works Hub" means a nonprofit organization
21selected by the Department to act as a workforce intermediary
22and to participate in the Illinois Climate Works
23Preapprenticeship Program. To qualify as a Climate Works Hub,
24the organization must demonstrate the following:
25        (1) the ability to effectively serve diverse and
26    underrepresented populations, including by providing

 

 

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1    employment services to such populations;
2        (2) experience with the construction and building
3    trades;
4        (3) the ability to recruit, prescreen, and provide
5    preapprenticeship training to prepare workers for
6    employment in the construction and building trades; and
7        (4) a plan to provide the following:
8            (A) preparatory classes;
9            (B) workplace readiness skills, such as resume
10        preparation and interviewing techniques;
11            (C) strategies for overcoming barriers to entry
12        and completion of an apprenticeship program; and
13            (D) any prerequisites for acceptance into an
14        apprenticeship program.
 
15    Section 5-10. Findings. The General Assembly finds that
16the clean energy sector is a growing area of the economy in the
17State of Illinois. The General Assembly further finds that
18State investment in the clean energy economy in Illinois can
19be a vehicle for expanding equitable access to public health,
20safety, a cleaner environment, quality jobs, and economic
21opportunity.
22    It is in the public policy interest of the State to ensure
23that Illinois residents from communities disproportionately
24impacted by climate change, communities facing coal plant or
25coal mine closures, and economically disadvantaged communities

 

 

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1and individuals experiencing barriers to employment have
2access to State programs and good jobs and career
3opportunities in growing sectors of the State economy. To
4promote those interests in the growing clean energy sector,
5the General Assembly hereby creates this Act to increase
6access to and opportunities for education, training, and
7support services these individuals need to succeed in the
8labor market generally and the clean energy sector
9specifically. The General Assembly further finds that the
10programs included in this Act are essential to equitable,
11statewide access to quality training, jobs, and economic
12opportunities across the clean energy sector.
 
13    Section 5-15. Regional Administrators.
14    (a) Subject to appropriation, the Department shall select
153 unique Regional Administrators: one Regional Administrator
16for coordination of the work in the Northern Illinois Program
17Delivery Area, one Regional Administrator for coordination of
18the work in the Central Illinois Program Delivery Area, and
19one Regional Administrator for coordination of the work in the
20Southern Illinois Program Delivery Area.
21    (b) The Regional Administrators shall have strong
22capabilities, experience, and knowledge related to program
23development and fiscal management; cultural and language
24competency needed to be effective in their respective
25communities to be served; expertise in working in and with

 

 

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1BIPOC and environmental justice communities; knowledge and
2experience in working with employer or sectoral partnerships,
3if applicable, in clean energy or related sectors; and
4awareness of industry trends and activities, workforce
5development best practices, regional workforce development
6needs, regional and industry employers, and community
7development. The Regional Administrators shall demonstrate a
8track record of strong partnerships with community-based
9organizations and labor organizations.
10    (c) The Regional Administrators shall work together to
11administer the implementation of the Clean Jobs Workforce
12Network Program, the Illinois Climate Works Preapprenticeship
13Program, the Clean Energy Contractor Incubator Program, and
14the Returning Resident Clean Jobs Training Program.
 
15    Section 5-20. Clean Jobs Workforce Network Program.
16    (a) As used in this Section, "Program" means the Clean
17Jobs Workforce Network Program.
18    (b) Subject to appropriation, the Department shall develop
19and, through Regional Administrators, administer the Clean
20Jobs Workforce Network Program to create a network of 13
21Program delivery Hub Sites with program elements delivered by
22community-based organizations and their subcontractors
23geographically distributed across the State including at least
24one Hub Site located in or near each of the following areas:
25Chicago (South Side), Chicago (Southwest and West Sides),

 

 

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1Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign,
2Danville, Decatur, Carbondale, East St. Louis, and Alton.
3    (c) In admitting program participants, for each workforce
4Hub Site, the Regional Administrators shall:
5        (1) in each Hub Site where the applicant pool allows:
6            (A) dedicate at least one-third of program
7        placements to applicants who reside in a geographic
8        area that is impacted by economic and environmental
9        challenges, defined as an area that is both (i) an R3
10        Area, as defined pursuant to Section 10-40 of the
11        Cannabis Regulation and Tax Act, and (ii) an
12        environmental justice community, as defined by the
13        Illinois Power Agency, excluding any racial or ethnic
14        indicators used by the agency unless and until the
15        constitutional basis for their inclusion in
16        determining program admissions is established. Among
17        applicants that satisfy these criteria, preference
18        shall be given to applicants who face barriers to
19        employment, such as low educational attainment, prior
20        involvement with the criminal legal system, and
21        language barriers; and applicants that are graduates
22        of or currently enrolled in the foster care system;
23        and
24            (B) dedicate at least two-thirds of program
25        placements to applicants that satisfy the criteria in
26        paragraph (1) or who reside in a geographic area that

 

 

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1        is impacted by economic or environmental challenges,
2        defined as an area that is either (i) an R3 Area, as
3        defined pursuant to Section 10-40 of the Cannabis
4        Regulation and Tax Act, or (ii) an environmental
5        justice community, as defined by the Illinois Power
6        Agency, excluding any racial or ethnic indicators used
7        by the agency unless and until the constitutional
8        basis for their inclusion in determining program
9        admissions is established. Among applicants that
10        satisfy these criteria, preference shall be given to
11        applicants who face barriers to employment, such as
12        low educational attainment, prior involvement with the
13        criminal legal system, and language barriers; and
14        applicants that are graduates of or currently enrolled
15        in the foster care system; and
16        (2) prioritize the remaining program placements for:
17    applicants who are displaced energy workers as defined in
18    the Energy Community Reinvestment Act; persons who face
19    barriers to employment, including low educational
20    attainment, prior involvement with the criminal legal
21    system, and language barriers; and applicants who are
22    graduates of or currently enrolled in the foster care
23    system, regardless of the applicant's area of residence.
24    The Department and Regional Administrators shall protect
25the confidentiality of any personal information provided by
26program applicants regarding the applicant's status as a

 

 

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1formerly incarcerated person or foster care recipient;
2however, the Department or Regional Administrators may publish
3aggregated data on the number of participants that were
4formerly incarcerated or foster care recipients so long as
5that publication protects the identities of those persons.
6    Any person who applies to the program may elect not to
7share with the Department or Regional Administrators whether
8he or she is a graduate or currently enrolled in the foster
9care system or was formerly convicted.
10    (d) Program elements for each Hub Site shall be provided
11by a community-based organization. The Department shall
12initially select a community-based organization in each Hub
13Site and shall subsequently select a community-based
14organization in each Hub Site every 3 years. Community-based
15organizations delivering program elements outlined in
16subsection (e) may provide all elements required or may
17subcontract to other entities for provision of portions of
18program elements, including, but not limited to,
19administrative soft and hard skills for program participants,
20delivery of specific training in the core curriculum, or
21provision of other support functions for program delivery
22compliance.
23    (e) The Clean Jobs Workforce Hubs Network shall:
24        (1) coordinate with Energy Transition Navigators: (i)
25    to increase participation in the Clean Jobs Workforce
26    Network Program and clean energy and related sector

 

 

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1    workforce and training opportunities; (ii) coordinate
2    recruitment, communications, and ongoing engagement with
3    potential employers, including, but not limited to,
4    activities such as job matchmaking initiatives, hosting
5    events such as job fairs, and collaborating with other Hub
6    Sites to identify and implement best practices for
7    employer engagement; and (iii) leverage community-based
8    organizations, educational institutions, and
9    community-based and labor-based training providers to
10    ensure program-eligible individuals across the State have
11    dedicated and sustained support to enter and complete the
12    career pipeline for clean energy and related sector jobs;
13        (2) develop formal partnerships, including formal
14    sector partnerships between community-based organizations
15    and entities that provide clean energy jobs, including
16    businesses, nonprofit organizations, and worker-owned
17    cooperatives, to ensure that Program participants have
18    priority access to employment training and hiring
19    opportunities; and
20        (3) implement the Clean Jobs Curriculum to provide,
21    including, but not limited to, training, certification
22    preparation, job readiness, and skill development,
23    including soft skills, math skills, technical skills,
24    certification test preparation, and other development
25    needed, to Program participants.
26    (f) Funding for the Program is subject to appropriation

 

 

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1from the Energy Transition Assistance Fund.
2    (g) The Department shall require submission of quarterly
3reports, including program performance metrics by each Hub
4Site to the Regional Administrator of their Program Delivery
5Area. Program performance metrics include, but are not limited
6to:
7        (1) demographic data, including racial, gender,
8    residency in eligible communities, and geographic
9    distribution data, on Program trainees entering and
10    graduating the Program;
11        (2) demographic data, including racial, gender,
12    residency in eligible communities, and geographic
13    distribution data, on Program trainees who are placed in
14    employment, including the percentages of trainees by race,
15    gender, and geographic categories in each individual job
16    type or category and whether employment is union,
17    nonunion, or nonunion via temporary agency;
18        (3) trainee job acquisition and retention statistics,
19    including the duration of employment (start and end dates
20    of hires) by race, gender, and geography;
21        (4) hourly wages, including hourly overtime pay rate,
22    and benefits of trainees placed into employment by race,
23    gender, and geography;
24        (5) percentage of jobs by race, gender, and geography
25    held by Program trainees or graduates that are full-time
26    equivalent positions, meaning that the position held is

 

 

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1    full-time, direct, and permanent based on 2,080 hours
2    worked per year (paid directly by the employer, whose
3    activities, schedule, and manner of work the employer
4    controls, and receives pay and benefits in the same manner
5    as permanent employees); and
6        (6) qualitative data consisting of open-ended
7    reporting on pertinent issues, including, but not limited
8    to, qualitative descriptions accompanying metrics or
9    identifying key successes and challenges.
10    (h) Within 3 years after the effective date of this Act,
11the Department shall select an independent evaluator to review
12and prepare a report on the performance of the Program and
13Regional Administrators.
 
14    Section 5-25. Clean Jobs Curriculum.
15    (a) As used in this Section, "clean energy jobs", subject
16to administrative rules, means jobs in the solar energy, wind
17energy, energy efficiency, energy storage, solar thermal,
18green hydrogen, geothermal, electric vehicle industries, other
19renewable energy industries, industries achieving emission
20reductions, and other related sectors including related
21industries that manufacture, develop, build, maintain, or
22provide ancillary services to renewable energy resources or
23energy efficiency products or services, including the
24manufacture and installation of healthier building materials
25that contain fewer hazardous chemicals. "Clean energy jobs"

 

 

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1includes administrative, sales, other support functions within
2these industries and other related sector industries.
3    (b) The Department shall convene a comprehensive
4stakeholder process that includes representatives from the
5State Board of Education, the Illinois Community College
6Board, the Department of Labor, community-based organizations,
7workforce development providers, labor unions, building
8trades, educational institutions, residents of BIPOC and
9low-income communities, residents of environmental justice
10communities, clean energy businesses, nonprofit organizations,
11worker-owned cooperatives, other groups that provide clean
12energy jobs opportunities, groups that provide construction
13and building trades job opportunities, and other participants
14to identify the career pathways and training curriculum needed
15for participants to be skilled, work ready, and able to enter
16clean energy jobs. The curriculum shall:
17        (1) identify the core training curricular competency
18    areas needed to prepare workers to enter clean energy and
19    related sector jobs;
20        (2) identify a set of required core cross-training
21    competencies provided in each training area for clean
22    energy jobs with the goal of enabling any trainee to
23    receive a standard set of skills common to multiple
24    training areas that would provide a foundation for
25    pursuing a career composed of multiple clean energy job
26    types;

 

 

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1        (3) include approaches to integrate broad occupational
2    training to provide career entry into the general
3    construction and building trades sector and any remedial
4    education and work readiness support necessary to achieve
5    educational and professional eligibility thresholds; and
6        (4) identify on-the-job training formats, where
7    relevant, and identify suggested trainer certification
8    standards, where relevant.
9    (c) The Department shall publish a report that includes
10the findings, recommendations, and core curriculum identified
11by the stakeholder group and shall post a copy of the report on
12its public website. The Department shall convene the process
13described to update and modify the recommended curriculum
14every 3 years to ensure the curriculum contents are current to
15the evolving clean energy industries, practices, and
16technologies.
17    (d) Organizations that receive funding to provide training
18under the Clean Jobs Workforce Network Program, including, but
19not limited to, community-based and labor-based training
20providers, and educational institutions must use the core
21curriculum that is developed under this Section.
 
22    Section 5-30. Energy Transition Barrier Reduction Program.
23    (a) As used in this Section, "Program" means the Energy
24Transition Barrier Reduction Program.
25    (b) Subject to appropriation, the Department shall create

 

 

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1and administer an Energy Transition Barrier Reduction Program.
2The Program shall be used to provide supportive services for
3individuals impacted by the energy transition. Services
4allowed are intended to help eligible individuals overcome
5financial and other barriers to participation in the Clean
6Jobs Workforce Network Program and the Illinois Climate Works
7Preapprenticeship Program.
8    (c) The Program shall be available to individuals eligible
9for participation in the Clean Jobs Workforce Network Program
10or Illinois Climate Works Preapprenticeship Program.
11    (d) The Department shall determine appropriate allowable
12program costs, elements, and financial supports to reduce
13barriers to successful participation in the Clean Jobs
14Workforce Program and the Illinois Climate Works
15Preapprenticeship Program for individuals eligible for these
16programs.
17    (e) Community-based organizations and other nonprofits
18selected by the Department shall provide supportive services
19described in this Section to eligible individuals
20participating in the Clean Jobs Workforce Network Program and
21Illinois Climate Works Preapprenticeship Program.
22    (f) The community-based organizations that provide support
23services under this Section shall coordinate with the Energy
24Transition Navigators to ensure eligible individuals have
25access to these services.
26    (g) Funding for the Program is subject to appropriation

 

 

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1from the Energy Transition Assistance Fund.
 
2    Section 5-35. Energy Transition Navigators.
3    (a) As used in this Section:
4    "Community-based provider" means a not-for-profit
5organization that has a history of serving low-wage or
6low-skilled workers or individuals from economically
7disadvantaged communities.
8    "Economically disadvantaged community" means areas of one
9or more census tracts where the average household income does
10not exceed 80% of the area median income.
11    (b) In order to engage eligible individuals to participate
12in the Clean Jobs Workforce Network Program, the Illinois
13Climate Works Preapprenticeship Program, Returning Residents
14Clean Jobs Program, Clean Energy Contractor Incubator Program,
15and Clean Energy Primes Contractor Accelerator Program and
16utilize the services offered under the Energy Transition
17Barrier Reduction Program, the Department shall, subject to
18appropriation, contract with community-based providers to
19serve as Energy Transition Navigators. Energy Transition
20Navigators shall provide education, outreach, and recruitment
21services to equity focused populations, prioritizing
22individuals eligible for the Clean Jobs Workforce Network
23Program or Illinois Climate Works Preapprenticeship Program,
24to make sure they are aware of and engaged in the statewide and
25local workforce development systems. Additional strategies may

 

 

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1include, but are not limited to, recruitment activities and
2events.
3    (c) For members of equity focused populations,
4prioritizing individuals eligible for the Clean Jobs Workforce
5Network Program or Illinois Climate Works Preapprenticeship
6Program, who may be interested in entrepreneurial pursuits,
7Energy Transition Navigators may connect these individuals
8with their area Small Business Development Center, Procurement
9Technical Assistance Centers, or economic development
10organization to engage in services, including, but not limited
11to, business consulting, business planning, regulatory
12compliance, marketing, training, accessing capital, government
13bid, and certification assistance.
14    (d) Energy Transition Navigators shall engage equity
15focused populations, prioritizing individuals eligible for the
16Clean Jobs Workforce Network Program or Illinois Climate Works
17Preapprenticeship Program, organizations working with these
18populations, local workforce innovation boards, and other
19relevant stakeholders to coordinate outreach initiatives to
20promote information regarding programs and services offered
21under the Clean Jobs Workforce Network Program, the Illinois
22Climate Works Preapprenticeship Program, and the Energy
23Transition Barrier Reduction Program. Energy Transition
24Navigators shall provide support where reasonable to
25individuals and entities applying for these services and
26programs.

 

 

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1    (e) Community education, outreach, and recruitment
2regarding the Clean Jobs Workforce Network Program, the
3Illinois Climate Works Preapprenticeship Program, and Energy
4Transition Barrier Reduction Program shall be targeted to the
5equity focused populations, prioritizing individuals eligible
6for the Clean Jobs Workforce Network Program or Illinois
7Climate Works Preapprenticeship Program.
8    (f) Community-based providers shall partner with
9educational institutions or organizations working with equity
10focused populations, local employers, labor unions, and others
11to identify members of equity focused populations in eligible
12communities who are unable to advance in their careers due to
13inadequate skills. Community-based providers shall provide
14information and consultation to equity focused populations,
15prioritizing individuals eligible for the Clean Jobs Workforce
16Network Program or Illinois Climate Works Preapprenticeship
17Program, on various educational opportunities and supportive
18services available to them.
19    (g) Community-based providers shall establish partnerships
20with employers, educational institutions, local economic
21development organizations, environmental justice
22organizations, trades groups, labor unions, and entities that
23provide jobs, including businesses and other nonprofit
24organizations, to target the skill needs of local industry.
25The community-based provider shall work with local workforce
26innovation boards and other relevant partners to develop skill

 

 

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1curriculum and career pathway support for disadvantaged
2individuals in equity focused populations, prioritizing
3individuals eligible for the Clean Jobs Workforce Network
4Program or Illinois Climate Works Preapprenticeship Program,
5that meets local employers' needs and establishes job
6placement opportunities after training.
7    (h) Funding for the Program is subject to appropriation
8from the Energy Transition Assistance Fund. Priority in
9awarding grants under this Section will be given to
10organizations that also have experience serving populations
11impacted by climate change.
12    (i) Each community-based organization that receives
13funding from the Department as an Energy Transition Navigator
14shall provide an annual report to the Department by April 1 of
15each calendar year. The annual report shall include the
16following information:
17        (1) a description of the community-based
18    organization's recruitment, screening, and training
19    efforts;
20        (2) the number of individuals who apply to,
21    participate in, and complete programs offered through the
22    Energy Transition Workforce Program, broken down by race,
23    gender, age, and location; and
24        (3) any other information deemed necessary by the
25    Department.
 

 

 

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1    Section 5-40. Illinois Climate Works Preapprenticeship
2Program.
3    (a) Subject to appropriation, the Department shall
4develop, and through Regional Administrators administer, the
5Illinois Climate Works Preapprenticeship Program. The goal of
6the Illinois Climate Works Preapprenticeship Program is to
7create a network of hubs throughout the State that will
8recruit, prescreen, and provide preapprenticeship skills
9training, for which participants may attend free of charge and
10receive a stipend, to create a qualified, diverse pipeline of
11workers who are prepared for careers in the construction and
12building trades and clean energy jobs opportunities therein.
13Upon completion of the Illinois Climate Works
14Preapprenticeship Program, the candidates will be connected to
15and prepared to successfully complete an apprenticeship
16program.
17    (b) Each Climate Works Hub that receives funding from the
18Energy Transition Assistance Fund shall provide an annual
19report to the Illinois Works Review Panel by April 1 of each
20calendar year. The annual report shall include the following
21information:
22        (1) a description of the Climate Works Hub's
23    recruitment, screening, and training efforts, including a
24    description of training related to construction and
25    building trades opportunities in clean energy jobs;
26        (2) the number of individuals who apply to,

 

 

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1    participate in, and complete the Climate Works Hub's
2    program, broken down by race, gender, age, and veteran
3    status;
4        (3) the number of the individuals referenced in
5    paragraph (2) of this subsection who are initially
6    accepted and placed into apprenticeship programs in the
7    construction and building trades; and
8        (4) the number of individuals referenced in paragraph
9    (2) of this subsection who remain in apprenticeship
10    programs in the construction and building trades or have
11    become journeymen one calendar year after their placement,
12    as referenced in paragraph (3) of this subsection.
13    (c) Subject to appropriation, the Department shall provide
14funding to 3 Climate Works Hubs throughout the State,
15including one to the Illinois Department of Transportation
16Region 1, one to the Illinois Department of Transportation
17Regions 2 and 3, and one to the Illinois Department of
18Transportation Regions 4 and 5. The Department shall initially
19select a community-based provider in each region and shall
20subsequently select a community-based provider in each region
21every 3 years.
22    (d) The Climate Works Hubs shall recruit, prescreen, and
23provide preapprenticeship training to equity investment
24eligible persons. This training shall include information
25related to opportunities and certifications relevant to clean
26energy jobs in the construction and building trades.

 

 

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1    (e) Funding for the Program is subject to appropriation
2from the Energy Transition Assistance Fund.
3    (f) The Department shall adopt any rules deemed necessary
4to implement this Section.
 
5    Section 5-45. Clean Energy Contractor Incubator Program.
6    (a) As used in this Section, "community-based
7organization" means a nonprofit organization, including an
8accredited public college or university that:
9        (1) has a history of providing business-related
10    assistance and knowledge to help entrepreneurs start, run,
11    and grow their businesses;
12        (2) has knowledge of construction and clean energy
13    trades;
14        (3) demonstrates relationships with local residents
15    and other organizations serving the community; and
16        (4) demonstrates the ability to effectively serve
17    diverse and underrepresented populations.
18    (b) Subject to appropriation, the Department shall
19develop, and through the Regional Administrators, administer
20the Clean Energy Contractor Incubator Program ("Program") to
21create a network of 13 Program delivery Hub Sites with program
22elements delivered by community-based organizations and their
23subcontractors geographically distributed across the State,
24including at least one Hub Site located in or near each of the
25following areas: Chicago (South Side), Chicago (Southwest and

 

 

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1West Sides), Waukegan, Rockford, Aurora, Joliet, Peoria,
2Champaign, Danville, Decatur, Carbondale, East St. Louis, and
3Alton.
4    (c) In admitting program participants, for each Contractor
5Incubator Hub Site the Regional Administrators shall:
6        (1) in each Hub Site where the applicant pool allows:
7            (A) dedicate at least one-third of program
8        placements to the owners of clean energy contractor
9        businesses and nonprofits who reside in a geographic
10        area that is impacted by economic and environmental
11        challenges, defined as an area that is both (i) an R3
12        Area, as defined pursuant to Section 10-40 of the
13        Cannabis Regulation and Tax Act, and (ii) an
14        environmental justice community, as defined by the
15        Illinois Power Agency, excluding any racial or ethnic
16        indicators used by the agency unless and until the
17        constitutional basis for their inclusion in
18        determining program admissions is established. Among
19        applicants that satisfy these criteria, preference
20        shall be given to applicants who face barriers to
21        employment, such as low educational attainment, prior
22        involvement with the criminal legal system, and
23        language barriers; and applicants that are graduates
24        of or currently enrolled in the foster care system;
25        and
26            (B) dedicate at least two-thirds of program

 

 

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1        placements to the owners of clean energy contractor
2        businesses and nonprofits that satisfy the criteria in
3        paragraph (1) or who reside in eligible communities.
4        Among applicants who live in eligible communities,
5        preference shall be given to applicants who face
6        barriers to employment, such as low educational
7        attainment, prior involvement with the criminal legal
8        system, and language barriers; and applicants that are
9        graduates of or currently enrolled in the foster care
10        system; and
11        (2) prioritize the remaining program placements for:
12    applicants who are displaced energy workers as defined in
13    the Energy Community Reinvestment Act; persons who face
14    barriers to employment, including low educational
15    attainment, prior involvement with the criminal legal
16    system, and language barriers; and applicants who are
17    graduates of or currently enrolled in the foster care
18    system, regardless of the applicants' area of residence.
19    Consideration shall also be given to any current or past
20participant in the Clean Jobs Workforce Network Program,
21Illinois Climate Works Preapprenticeship Program, or Returning
22Residents Clean Energy Jobs Training Program.
23    The Department and Regional Administrators shall protect
24the confidentiality of any personal information provided by
25program applicants regarding the applicant's status as a
26formerly incarcerated person or foster care recipient;

 

 

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1however, the Department or Regional Administrators may publish
2aggregated data on the number of participants that were
3formerly incarcerated or foster care recipients so long as
4that publication protects the identities of those persons.
5    Any person who applies to the program may elect not to
6share with the Department or Regional Administrators whether
7he or she is a graduate or currently enrolled in the foster
8care system or was formerly convicted.
9    (d) Program elements at each Hub Site shall be provided by
10a local community-based organization. The Department shall
11initially select a community-based organization in each Hub
12Site and shall subsequently select a community-based
13organization in each Hub Site every 3 years. Community-based
14organizations delivering program elements outlined in
15subsection (e) may provide all elements required or may
16subcontract to other entities for provision of portions of
17program elements, including, but not limited to,
18administrative soft and hard skills for program participants,
19delivery of specific training in the core curriculum, or
20provision of other support functions for program delivery
21compliance.
22    (e) The Clean Energy Contractor Incubator Program shall:
23        (1) provide access to low-cost capital for small clean
24    energy businesses and contractors;
25        (2) provide support for obtaining financial assurance,
26    including, but not limited to: bonding; back office

 

 

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1    services; insurance, permits, training and certifications;
2    business planning; and low-interest loans;
3        (3) train, mentor, and provide other support needed to
4    allow participant contractors to: (i) build their
5    businesses and connect to specific projects, (ii) register
6    as approved vendors, (iii) engage in approved vendor
7    subcontracting and qualified installer opportunities, (iv)
8    develop partnering and networking skills, (v) compete for
9    capital and other resources, and (vi) execute clean
10    energy-related project installations and subcontracts;
11        (4) ensure that participant contractors, community
12    partners, and potential contractor clients are aware of
13    and engaged in the Program;
14        (5) connect participant contractors with the
15    Department of Labor for resources, training, and technical
16    support on prevailing wage compliance;
17        (6) provide recruitment and ongoing engagement with
18    entities that hire contractors and subcontractors,
19    programs providing renewable energy resource-related
20    projects, incentive programs, and approved vendor and
21    qualified installer opportunities, including, but not
22    limited to, activities such as matchmaking, events, and
23    collaborating with other Hub Sites.
24    (f) Funding for the Program and independent evaluations as
25described in subsection (h) are subject to appropriation from
26the Energy Transition Assistance Fund.

 

 

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1    (g) The Department shall require submission of quarterly
2reports including program performance metrics by each Hub Site
3to the Regional Administrator of their Program Delivery Area.
4Program performance metrics include, but are not limited to:
5        (1) demographic data including: race, gender,
6    geographic location, R3 residency, Environmental Justice
7    Community residency, foster care system participation, and
8    justice-involvement for the owners of contractors
9    applying, accepted into, and graduating from the Program;
10        (2) the number of projects completed by participant
11    contractors, alone or in partnership, by race, gender,
12    geographic location, R3 residency, Environmental Justice
13    Community residency, foster care system participation, and
14    justice-involvement for the owners of contractors;
15        (3) the number of partnerships with participant
16    contractors that are expected to result in contracts for
17    work by the participant contractor, by race, gender,
18    geographic location, R3 residency, Environmental Justice
19    Community residency, foster care system participation, and
20    justice-involvement for the owners of contractors;
21        (4) changes in participant contractors' business
22    revenue, by race, gender, geographic location, R3
23    residency, Environmental Justice Community residency,
24    foster care system participation, and justice-involvement
25    for the owners of contractors;
26        (5) the number of new hires by participant

 

 

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1    contractors, by race, gender, geographic location, R3
2    residency, Environmental Justice Community residency,
3    foster care system participation, and justice-involvement;
4        (6) demographic data, including race, gender,
5    geographic location, R3 residency, Environmental Justice
6    Community residency, foster care system participation, and
7    justice-involvement, and average wage data, for new hires
8    by participant contractors;
9        (7) certifications held by participant contractors,
10    and number of participants holding each certification,
11    including, but not limited to, registration under the
12    Business Enterprise for Minorities, Women, and Persons
13    with Disabilities Act program and other programs intended
14    to certify BIPOC entities;
15        (8) the number of Program sessions attended by
16    participant contractors, aggregated by race; and
17        (9) indicators relevant for assessing the general
18    financial health of participant contractors.
19    (h) Within 3 years after the effective date of this Act,
20the Department shall select an independent evaluator to review
21and prepare a report on the performance of the Program and
22Regional Administrators. The report shall be posted publicly.
 
23    Section 5-50. Returning Residents Clean Jobs Training
24Program.
25    (a) Subject to appropriation, the Department shall develop

 

 

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1and, in coordination with the Department of Corrections,
2administer the Returning Residents Clean Jobs Training
3Program.
4    (b) As used in this Section:
5    "Commitment" means a judicially determined placement in
6the custody of the Department of Corrections on the basis of a
7conviction.
8    "Committed person" means a person committed to the
9Department of Corrections.
10    "Community-based organization" means an organization that:
11        (1) provides employment, skill development, or related
12    services to members of the community;
13        (2) includes community colleges, nonprofits, and local
14    governments; and
15        (3) has a history of serving committed persons or
16    justice-involved persons.
17    "Correctional institution or facility" means a Department
18of Corrections building or part of a Department of Corrections
19building where committed persons are detained in a secure
20manner.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Discharge" means the end of a sentence or the final
24termination of a detainee's physical commitment to and
25confinement in the Department of Corrections.
26    "Program" means the Returning Residents Clean Jobs

 

 

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1Training Program.
2    "Program Administrator" means, for each Program Delivery
3Area, the administrator selected by the Department pursuant to
4paragraph (1) of subsection (g) of this Section.
5    "Returning resident" means any United States resident who
6is: (i) 17 years of age or older; (ii) in the physical custody
7of the Department of Corrections; and (iii) scheduled to be
8re-entering society within 36 months.
9    (c) Returning Residents Clean Jobs Training Program.
10        (1) Connected services. The Program shall prepare
11    graduates to work in the clean energy and related sector
12    jobs as defined in Section 5-25.
13        (2) Recruitment of participants. The Program
14    Administrators shall, in coordination with the Department
15    of Commerce and Economic Opportunity, educate committed
16    persons in both men's and women's correctional
17    institutions and facilities on the benefits of the Program
18    and how to enroll in the Program.
19        (3) Connection to employers. The Program
20    Administrators shall, with assistance from the Regional
21    Administrators, connect Program graduates with potential
22    employers in the clean energy jobs industries.
23        (4) Graduation. Participants who successfully complete
24    all assignments in the Program shall receive a Program
25    graduation certificate and any certifications or
26    credentials earned in the process.

 

 

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1        (5) Eligibility. A committed person in a correctional
2    institution or facility is eligible if the committed
3    person:
4            (i) is within 36 months of expected release;
5            (ii) consented in writing to participation in the
6        Program;
7            (iii) meets all Program and testing requirements;
8            (iv) is willing to follow all Program
9        requirements; and
10            (v) does not pose a safety and security risk for
11        the facility or any person.
12    The Department of Corrections shall have sole discretion
13to determine whether a committed person's participation in the
14Program poses a safety and security risk for the facility or
15any person. The Department of Corrections shall determine
16whether a committed person is eligible to participate in the
17Program.
18    (d) Program entry and testing requirements. To enter the
19Returning Residents Clean Jobs Training Program, committed
20persons must complete a simple application, undergo an
21interview and coaching session, and must score a minimum of a
226.0 or above on the Test for Adult Basic Education or the
23Illinois Community College Board approved assessment for
24determining basic skills deficiency. The Returning Residents
25Clean Jobs Training Program shall include a one-week
26pre-program orientation that ensures the candidates understand

 

 

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1and are interested in continuing the Program. Candidates that
2successfully complete the orientation may continue to the full
3Program.
4    (d-5) Training. Once approved for the new program,
5candidates must receive essential employability skills
6training as part of vocational or occupational training.
7Training must lead to certifications or credentials that
8prepare candidates for employment.
9    (e) Removal from the Program. The Department of
10Corrections may remove a committed person enrolled in the
11Program for violation of institutional rules; failure to
12participate or meet expectations of the Program; failure of a
13drug test; disruptive behavior; or for reasons of safety,
14security, and order of the facility.
15    (f) Drug testing. A clean drug test is required to
16complete the Returning Residents Clean Jobs Training Program.
17A drug test shall be administered at least once prior to
18graduation. The Department of Corrections shall be responsible
19for the drug testing of applicants.
20    (g) Curriculum.
21        (1) The Department of Commerce and Economic
22    Opportunity shall design a curriculum for the Program that
23    is as similar as practical to the Clean Jobs Curriculum
24    and meets in-facility requirements. The curriculum shall
25    focus on preparing graduates for employment in the clean
26    energy and related sector jobs as defined in Section 5-25.

 

 

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1    The Program shall include structured hands-on activities
2    in correctional institutions or facilities, including
3    classroom spaces and outdoor spaces, to instruct
4    participants in the core curriculum established in this
5    Act. The Department and the Department of Corrections
6    shall work together to ensure all curriculum elements may
7    be available within Department of Corrections facilities.
8        (2) The Program Administrators shall collaborate to
9    create and publish a guidebook that allows for the
10    implementation of the curriculum and provides information
11    on all necessary and useful resources for Program
12    participants and graduates.
13    (h) Program administration.
14        (1) The Department of Commerce and Economic
15    Opportunity shall select a Program Administrator for each
16    Program Delivery Area to administer and coordinate the
17    Program. The Program Administrators shall have strong
18    capabilities, experience, and knowledge related to program
19    development and economic management; cultural and language
20    competency needed to be effective in the communities to be
21    served; committed persons or justice-involved persons;
22    knowledge and experience in working with providers of
23    clean energy jobs; and awareness of clean energy and
24    related sector trends and activities, workforce
25    development best practices, regional workforce development
26    needs, and community development.

 

 

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1        The Program Administrator must pass a background check
2    administered by the Department of Corrections and be
3    approved by the Department of Corrections to work within a
4    secure facility prior to being hired by the Department of
5    Commerce and Economic Opportunity for a Program delivery
6    area.
7        (2) The Program Administrators shall:
8            (i) coordinate with Regional Administrators and
9        the Clean Jobs Workforce Network Program to ensure
10        that execution, performance, partnerships, marketing,
11        and Program access across the State consistent with
12        respecting regional differences;
13            (ii) work with community-based organizations
14        approved to provide industry-recognized credentials or
15        education institutions to deliver the Program;
16            (iii) collaborate to create and publish an
17        employer "Hiring Returning Residents" handbook that
18        includes benefits and expectations of hiring returning
19        residents, guidance on how to recruit, hire, and
20        retain returning residents, guidance on how to access
21        State and federal tax credits and incentives and State
22        and federal resources, guidance on how to update
23        company policies to support hiring and supporting
24        returning residents, and an understanding of the harm
25        in one-size-fits-all policies toward returning
26        residents. The handbook shall be updated every 5 years

 

 

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1        or more frequently if needed to ensure that its
2        contents are accurate. The handbook shall be made
3        available on the Department's website;
4            (iv) work with potential employers to promote
5        company policies to support hiring and supporting
6        returning residents via employee/employer liability,
7        coverage, insurance, bonding, training, hiring
8        practices, and retention support;
9            (v) provide services such as job coaching and
10        financial coaching to Program graduates to support
11        employment longevity; and
12            (vi) identify clean energy job opportunities and
13        assist participants in achieving employment. The
14        Program shall include at least one job fair; include
15        job placement discussions with clean energy employers;
16        establish a partnership with Illinois solar energy
17        businesses and trade associations to identify solar
18        employers that support and hire returning residents;
19        and involve the Department of Commerce and Economic
20        Opportunity, Regional Administrators, and the Advisory
21        Council in finding employment for participants and
22        graduates in the clean energy and related sector
23        industries.
24        (3) The Department shall select community-based
25    organizations to provide Program elements at each
26    facility. Community-based organizations shall be

 

 

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1    competitively selected by the Department of Commerce and
2    Economic Opportunity. Community-based organizations
3    delivering the Program elements outlined may provide all
4    elements required or may subcontract to other entities for
5    the provision of portions of Program elements. All
6    contractors who have regular interactions with committed
7    persons, regularly access a Department of Corrections
8    facility, or regularly access a committed person's
9    personal identifying information or other data elements
10    must pass a Department of Corrections background check
11    prior to being approved to administer the Program elements
12    at a facility.
13        (4) The Department of Corrections shall aim to include
14    training in conjunction with other pre-release procedures
15    and movements. Delays in a workshop being provided shall
16    not cause delays in discharge.
17        (5) The Program Administrators may establish shortened
18    Returning Resident Clean Jobs Training Programs to prepare
19    and place graduates in the Clean Jobs Workforce Network
20    Program or the Illinois Climate Works Preapprenticeship
21    Program following the graduate's release from commitment.
22    Graduates of these programs shall receive training that
23    leads to certification or credentials designed to lead to
24    employment and shall be prioritized for placement in a
25    Clean Jobs Workforce Hubs training program or the Illinois
26    Climate Works Preapprenticeship Program.

 

 

SB2408 Enrolled- 38 -LRB102 11366 BMS 16699 b

1        (6) The Director of Corrections shall:
2            (i) Ensure that the wardens or superintendents of
3        all correctional institutions and facilities visibly
4        post information on the Program in an accessible
5        manner for committed individuals.
6            (ii) Identify the institutions and facilities
7        within the Department of Corrections that will offer
8        the Program. The determination of which facility will
9        offer the Program shall be based on available
10        programming space, staffing, population, facility
11        mission, security concerns, and any other relevant
12        factor in determining suitable locations for the
13        Program.
14    (i) Performance metrics.
15        (1) The Program Administrators shall collect data to
16    evaluate and ensure Program and participant success,
17    including:
18            (i) the number of returning residents who enrolled
19        in the Program;
20            (ii) the number of returning residents who
21        completed the Program;
22            (iii) the total number of individuals discharged;
23            (iv) the demographics of each entering and
24        graduating class;
25            (v) the percentage of graduates employed at 6 and
26        12 months after release;

 

 

SB2408 Enrolled- 39 -LRB102 11366 BMS 16699 b

1            (vi) the recidivism rate of Program participants
2        at 3 and 5 years after release;
3            (vii) the candidates interviewed and hiring
4        status;
5            (viii) the graduate employment status, such as
6        hire date, pay rates, whether full-time, part-time, or
7        seasonal, and separation date; and
8            (ix) continuing education and certifications
9        gained by Program graduates.
10        (2) The Department of Commerce and Economic
11    Opportunity shall publish an annual report containing
12    these performance metrics. Data may be disaggregated by
13    institution, discharge, or residence address of resident,
14    and other factors.
15    (j) Funding. Funding for the Program is subject to
16appropriation from the Energy Transition Assistance Fund.
17Funding may be made available from other lawful sources,
18including donations, grants, and federal incentives.
19    (k) Access. The Program instructors and staff must pass a
20background check administered by the Department of Corrections
21prior to entering a Department of Corrections institution or
22facility. The Warden or Superintendent shall have the
23authority to deny a Program instructor or staff member entry
24into an institution or facility for safety and security
25concerns or failure to follow all facility procedures or
26protocols. A Program instructor or staff member administering

 

 

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1the Program may be terminated or have his or her contract
2canceled if the Program instructor or staff member is denied
3entry into an institution or facility for safety and security
4concerns.
 
5    Section 5-55. Clean Energy Primes Contractor Accelerator
6Program.
7    (a) As used in this Section:
8    "Approved vendor" means the definition of that term used
9and as may be updated by the Illinois Power Agency.
10    "Minority business" means a minority-owned business as
11defined in Section 2 of the Business Enterprise for
12Minorities, Women, and Persons with Disabilities Act.
13    "Minority Business Enterprise certification" means the
14certification or recognition certification affidavit from the
15State of Illinois Department of Central Management Services
16Business Enterprise Program or a program with equivalent
17requirements.
18    "Program" means the Clean Energy Primes Contractor
19Accelerator Program.
20    "Returning resident" has the meaning given to that term in
21Section 5-50 of this Act.
22    (b) Subject to appropriation, the Department shall
23develop, and through a Primes Program Administrator and
24Regional Primes Program Leads described in this Section,
25administer the Clean Energy Primes Contractor Accelerator

 

 

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1Program. The Program shall be administered in 3 program
2delivery areas: the Northern Illinois Program Delivery Area
3covering Northern Illinois, the Central Illinois Program
4Delivery Area covering Central Illinois, and the Southern
5Illinois Program Delivery Area covering Southern Illinois.
6Prior to developing the Program, the Department shall solicit
7public comments, with a 30-day comment period, to gather input
8on Program implementation and associated community outreach
9options.
10    (c) The Program shall be available to selected contractors
11who best meet the following criteria:
12        (1) 2 or more years of experience in a clean energy or
13    a related contracting field;
14        (2) at least $5,000 in annual business; and
15        (3) a substantial and demonstrated commitment of
16    investing in and partnering with individuals and
17    institutions in equity investment eligible communities.
18    (c-5) The Department shall develop scoring criteria to
19select contractors for the Program, which shall consider:
20        (1) projected hiring and industry job creation,
21    including wage and benefit expectations;
22        (2) a clear vision of strategic business growth and
23    how increased capitalization would benefit the business;
24        (3) past project work quality and demonstration of
25    technical knowledge;
26        (4) capacity the applicant is anticipated to bring to

 

 

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1    project development;
2        (5) willingness to assume risk;
3        (6) anticipated revenues from future projects;
4        (7) history of commitment to advancing equity as
5    demonstrated by, among other things, employment of or
6    ownership by equity investment eligible persons and a
7    history of partnership with equity focused community
8    organizations or government programs; and
9        (8) business models that build wealth in the larger
10    underserved community.
11    Applicants for Program participation shall be allowed to
12reapply for a future cohort if they are not selected, and the
13Primes Program Administrator shall inform each applicant of
14this option.
15    (d) The Department, in consultation with the Primes
16Program Administrator and Regional Primes Program Leads, shall
17select a new cohort of participant contractors from each
18Program Delivery Area every 18 months. Each regional cohort
19shall include between 3 and 5 participants. The Program shall
20cap contractors in the energy efficiency sector at 50% of
21available cohort spots and 50% of available grants and loans,
22if possible.
23    (e) The Department shall hire a Primes Program
24Administrator with experience in leading a large
25contractor-based business in Illinois; coaching and mentoring;
26the Illinois clean energy industry; and working with equity

 

 

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1investment eligible community members, organizations, and
2businesses.
3    (f) The Department shall select 3 Regional Primes Program
4Leads who shall report directly to the Primes Program
5Administrator. The Regional Primes Program Leads shall be
6located within their Program Delivery Area and have experience
7in leading a large contractor-based business in Illinois;
8coaching and mentoring; the Illinois clean energy industry;
9developing relationships with companies in the Program
10Delivery Area; and working with equity investment eligible
11community members, organizations, and businesses.
12    (g) The Department may determine how Program elements will
13be delivered or may contract with organizations with
14experience delivering the Program elements described in
15subsection (h) of this Section.
16    (h) The Clean Energy Primes Contractor Accelerator Program
17shall provide participants with:
18        (1) a 5-year, 6-month progressive course of one-on-one
19    coaching to assist each participant in developing an
20    achievable 5-year business plan, including review of
21    monthly metrics, and advice on achieving participant's
22    goals;
23        (2) operational support grants not to exceed
24    $1,000,000 annually to support the growth of participant
25    contractors with access to capital for upfront project
26    costs and pre-development funding, among others. The

 

 

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1    amount of the grant shall be based on anticipated project
2    size and scope;
3        (3) business coaching based on the participant's
4    needs;
5        (4) a mentorship of approximately 2 years provided by
6    a qualified company in the participant's field;
7        (5) access to Clean Energy Contractor Incubator
8    Program services;
9        (6) assistance with applying for Minority Business
10    Enterprise certification and other relevant certifications
11    and approved vendor status for programs offered by
12    utilities or other entities;
13        (7) assistance with preparing bids and Request for
14    Proposal applications;
15        (8) opportunities to be listed in any relevant
16    directories and databases organized by the Department of
17    Central Management Services;
18        (9) opportunities to connect with participants in
19    other Department programs;
20        (10) assistance connecting with and initiating
21    participation in the Illinois Power Agency's Adjustable
22    Block program, the Illinois Solar for All Program, and
23    utility programs; and
24        (11) financial development assistance programs such as
25    zero-interest and low-interest loans with the Climate Bank
26    as established by Article 850 of the Illinois Finance

 

 

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1    Authority Act or a comparable financing mechanism. The
2    Illinois Finance Authority shall retain authority to
3    determine loan repayment terms and conditions.
4    (i) The Primes Program Administrator shall:
5        (1) collect and report performance metrics as
6    described in this Section;
7        (2) review and assess:
8            (i) participant work plans and annual goals; and
9            (ii) the mentorship program, including approved
10        mentor companies and their stipend awards; and
11        (3) work with the Regional Primes Program Leads to
12    publicize the Program; design and implement a mentorship
13    program; and ensure participants are quickly on-boarded.
14    (j) The Regional Primes Program Leads shall:
15        (1) publicize the Program; the budget shall include
16    funds to pay community-based organizations with a track
17    record of working with equity investment eligible
18    communities to complete this work;
19        (2) recruit qualified Program applicants;
20        (3) assist Program applicants with the application
21    process;
22        (4) introduce participants to the Program offerings;
23        (5) conduct entry and annual assessments with
24    participants to identify training, coaching, and other
25    Program service needs;
26        (6) assist participants in developing goals on entry

 

 

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1    and annually, and assessing progress toward meeting the
2    goals;
3        (7) establish a metric reporting system with each
4    participant and track the metrics for progress against the
5    contractor's work plan and Program goals;
6        (8) assist participants in receiving their Minority
7    Business Enterprise certification and any other relevant
8    certifications and approved vendor statuses;
9        (9) match participants with Clean Energy Contractor
10    Incubator Program offerings and individualized expert
11    coaching, including training on working with returning
12    residents and companies that employ them;
13        (10) pair participants with a mentor company;
14        (11) facilitate connections between participants and
15    potential subcontractors and employees;
16        (12) dispense a participant's awarded operational
17    grant funding;
18        (13) connect participants to zero-interest and
19    low-interest loans from the Climate Bank as established by
20    Article 850 of the Illinois Finance Authority Act or a
21    comparable financing mechanism;
22        (14) encourage participants to apply for appropriate
23    State and private business opportunities;
24        (15) review a participant's progress and make a
25    recommendation to the Department about whether the
26    participant should continue in the Program, be considered

 

 

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1    a Program graduate, and whether adjustments should be made
2    to a participant's grant funding, loans, and related
3    services;
4        (16) solicit information from participants, which
5    participants shall be required to provide, necessary to
6    understand the participant's business, including financial
7    and income information, certifications that the
8    participant is seeking to obtain, and ownership, employee,
9    and subcontractor data, including compensation, length of
10    service, and demographics; and
11        (17) other duties as required.
12    (k) Performance metrics. The Primes Program Administrator
13and Regional Primes Program Leads shall collaborate to collect
14and report the following metrics quarterly to the Department
15and Advisory Council:
16        (1) demographic information on cohort recruiting and
17    formation, including racial, gender, geographic
18    distribution data, and data on the number and percentage
19    of R3 residents, environmental justice community
20    residents, foster care alumni, and formerly convicted
21    persons who are cohort applicants and admitted
22    participants;
23        (2) participant contractor engagement in other
24    Illinois clean energy programs such as the Adjustable
25    Block program, Illinois Solar for All Program, and the
26    utility-run energy efficiency and electric vehicle

 

 

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1    programs;
2        (3) retention of participants in each cohort;
3        (4) total projects bid, started, and completed by
4    participants, including information about revenue, hiring,
5    and subcontractor relationships with projects;
6        (5) certifications issued;
7        (6) employment data for contractor hires and industry
8    jobs created, including demographic, salary, length of
9    service, and geographic data;
10        (7) grants and loans distributed; and
11        (8) participant satisfaction with the Program.
12    The metrics in paragraphs (2), (4), and (6) shall be
13collected from Program participants and graduates for 10 years
14from their entrance into the Program to help the Department
15and Program Administrators understand the Program's long-term
16effect.
17    Data should be anonymized where needed to protect
18participant privacy.
19    The Department shall make such reports publicly available
20on its website.
21    (l) Mentorship Program.
22        (1) The Regional Primes Program Leads shall recruit,
23    and the Primes Program Administrator shall select, with
24    approval from the Department, private companies with the
25    following qualifications to mentor participants and assist
26    them in succeeding in the clean energy industry:

 

 

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1            (i) excellent standing with state clean energy
2        programs;
3            (ii) 4 or more years of experience in their field;
4        and
5            (iii) a proven track record of success in their
6        field.
7        (2) Mentor companies may receive a stipend, determined
8    by the Department, for their participation. Mentor
9    companies may identify what level of stipend they require.
10        (3) The Primes Program Administrator shall develop
11    guidelines for mentor company-mentee profit sharing or
12    purchased services agreements.
13        (4) The Regional Primes Program Leads shall:
14            (i) collaborate with mentor companies and
15        participants to create a plan for ongoing contact such
16        as on-the-job training, site walkthroughs, business
17        process and structure walkthroughs, quality assurance
18        and quality control reviews, and other relevant
19        activities;
20            (ii) recommend the mentor company-mentee pairings
21        and associated mentor company stipends for approval;
22            (iii) conduct an annual review of each mentor
23        company-mentee pairing and recommend whether the
24        pairing continues for a second year and the level of
25        stipend that is appropriate. The review shall also
26        ensure that any profit sharing and purchased services

 

 

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1        agreements adhere to the guidelines established by the
2        Primes Program Administrator.
3        (5) Contractors may request reassignment to a new
4    mentor company.
5    (m) Disparity study. The Program Administrator shall
6cooperate with the Illinois Power Agency in the conduct of a
7disparity study, as described in subsection (c-15) of Section
81-75 of the Illinois Power Agency Act, and in the effectuation
9of appropriate remedies necessary to address any
10discrimination that such study may find. Potential remedies
11shall include, but not be limited to, race-conscious remedies
12to rapidly eliminate discrimination faced by minority
13businesses and works in the industry this Program serves,
14consistent with the law. Remedies shall be developed through
15consultation with individuals, companies, and organizations
16that have expertise on discrimination faced in the market and
17potential legally permissible remedies for addressing it.
18Notwithstanding any other requirement of this Section, the
19Program Administrator shall modify program participation
20criteria or goals as soon as the report has been published, in
21such a way as is consistent with state and federal law, to
22rapidly eliminate discrimination on minority businesses and
23workers in the industry this Program serves by setting
24standards for Program participation. This study will be paid
25for with funds from the Energy Transition Assistance Fund or
26any other lawful source.

 

 

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1    (n) Program budget.
2        (1) The Department may allocate up to $3,000,000
3    annually to the Primes Program Administrator for each of
4    the 3 regional budgets from the Energy Transition
5    Assistance Fund.
6        (2) The Primes Program Administrator shall work with
7    the Illinois Finance Authority and the Climate Bank as
8    established by Article 850 of the Illinois Finance
9    Authority Act or comparable financing institution so that
10    loan loss reserves may be sufficient to underwrite
11    $7,000,000 in low-interest loans in each of the 3 Program
12    delivery areas.
13        (3) Any grant and loan funding shall be made available
14    to participants in a timely fashion.
 
15    Section 5-60. Jobs and Environmental Justice Grant
16Program.
17    (a) In order to provide upfront capital to support the
18development of projects, businesses, community organizations,
19and jobs creating opportunity for historically disadvantaged
20populations, and to provide seed capital to support community
21ownership of renewable energy projects, the Department of
22Commerce and Economic Opportunity shall create and administer
23a Jobs and Environmental Justice Grant Program. The grant
24program shall be designed to help remove barriers to project,
25community, and business development caused by a lack of

 

 

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1capital.
2    (b) The grant program shall provide grant awards of up to
3$1,000,000 per application to support the development of
4renewable energy resources as defined in Section 1-10 of the
5Illinois Power Agency Act, and energy efficiency measures as
6defined in Section 8-103B of the Public Utilities Act. The
7amount of a grant award shall be based on a project's size and
8scope. Grants shall be provided upfront, in advance of other
9incentives, to provide businesses, organizations, and
10community groups with capital needed to plan, develop, and
11execute a project. Grants shall be designed to coordinate with
12and supplement existing incentive programs, such as the
13Adjustable Block program, the Illinois Solar for All Program,
14the community renewable generation projects, and renewable
15energy procurements as described in the Illinois Power Agency
16Act, as well as utility energy efficiency measures as
17described in Section 8-103B of the Public Utilities Act.
18    (c) The Jobs and Environmental Justice Grant Program shall
19include 2 subprograms:
20        (1) the Equitable Energy Future Grant Program; and
21        (2) the Community Solar Energy Sovereignty Grant
22    Program.
23    (d) The Equitable Energy Future Grant Program is designed
24to provide seed funding and pre-development funding
25opportunities for equity eligible contractors.
26        (1) The Equitable Energy Future Grant shall be awarded

 

 

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1    to businesses and nonprofit organizations for costs
2    related to the following activities and project needs:
3            (i) planning and project development, including
4        costs for professional services such as architecture,
5        design, engineering, auditing, consulting, and
6        developer services;
7            (ii) project application, deposit, and approval;
8            (iii) purchasing and leasing of land;
9            (iv) permitting and zoning;
10            (v) interconnection application costs and fees,
11        studies, and expenses;
12            (vi) equipment and supplies;
13            (vii) community outreach, marketing, and
14        engagement; and
15            (viii) staff and operations expenses.
16        (2) Grants shall be awarded to projects that most
17    effectively provide opportunities for equity eligible
18    contractors and equity investment eligible communities,
19    and should consider the following criteria:
20            (i) projects that provide community benefits,
21        which are projects that have one or more of the
22        following characteristics: (A) greater than 50% of the
23        project's energy provided or saved benefits low-income
24        residents, or (B) the project benefits not-for-profit
25        organizations providing services to low-income
26        households, affordable housing owners, or

 

 

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1        community-based limited liability companies providing
2        services to low-income households;
3            (ii) projects that are located in equity
4        investment eligible communities;
5            (iii) projects that provide on-the-job training;
6            (iv) projects that contract with contractors who
7        are participating or have participated in the Clean
8        Energy Contractor Incubator Program, Clean Energy
9        Primes Contractor Accelerator Program, or similar
10        programs; and
11            (v) projects employ a minimum of 51% of its
12        workforce from participants and graduates of the Clean
13        Jobs Workforce Network Program, Illinois Climate Works
14        Preapprenticeship Program, and Returning Residents
15        Clean Jobs Training Program.
16        (3) Grants shall be awarded to applicants that meet
17    the following criteria:
18            (i) are equity eligible contractors per the equity
19        accountability systems described in subsection (c-10)
20        of Section 1-75 of the Illinois Power Agency Act, or
21        meet the equity building criteria in paragraph (9.5)
22        of subsection (g) of Section 8-103B of the Public
23        Utilities Act; and
24            (ii) provide demonstrable proof of a historical or
25        future, and persisting, long-term partnership with the
26        community in which the project will be located.

 

 

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1    (e) The Community Solar Energy Sovereignty Grant Program
2shall be designed to support the pre-development and
3development of community solar projects that promote community
4ownership and energy sovereignty.
5        (1) Grants shall be awarded to applicants that best
6    demonstrate the ability and intent to create community
7    ownership and other local community benefits, including
8    local community wealth building via community renewable
9    generation projects. Grants shall be prioritized to
10    applicants for whom:
11            (i) the proposed project is located in and
12        supporting an equity investment eligible community or
13        communities; and
14            (ii) the proposed project provides additional
15        benefits for participating low-income households.
16        (2) Grant funds shall be awarded to support project
17    pre-development work and may also be awarded to support
18    the development of programs and entities to assist in the
19    long-term governance, management, and maintenance of
20    community solar projects, such as community solar
21    cooperatives. For example, funds may be awarded for:
22            (i) early stage project planning;
23            (ii) project team organization;
24            (iii) site identification;
25            (iv) organizing a project business model and
26        securing financing;

 

 

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1            (v) procurement and contracting;
2            (vi) customer outreach and enrollment;
3            (vii) preliminary site assessments;
4            (viii) development of cooperative or community
5        ownership model; and
6            (ix) development of project models that allocate
7        benefits to equity investment eligible communities.
8        (3) Grant recipients shall submit reports to the
9    Department at the end of the grant term on the activities
10    pursued under their grant and any lessons learned for
11    publication on the Department's website so that other
12    energy sovereignty projects may learn from their
13    experience.
14        (4) Eligible applicants shall include community-based
15    organizations, as defined in the Illinois Power Agency's
16    long-term renewable resources procurement plan, or
17    technical service providers working in direct partnership
18    with community-based organizations.
19        (5) The amount of a grant shall be based on a projects'
20    size and scope. Grants shall allow for a significant
21    portion, or the entirety, of the grant value to be made
22    upfront, in advance of other incentives, to ensure
23    businesses and organizations have the capital needed to
24    plan, develop, and execute a project.
25    (f) The application process for both subprograms shall not
26be burdensome on applicants, nor require extensive technical

 

 

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1knowledge, and shall be able to be completed on less than 4
2standard letter-sized pages.
3    (g) These grant subprograms may be coordinated with
4low-interest and no-interest financing opportunities offered
5through the Clean Energy Jobs and Justice Fund.
6    (h) The grant subprograms may have a budget of up to
7$34,000,000 per year. No more than 25% of the allocated budget
8shall go to the Community Solar Energy Sovereignty Grant
9Program.
 
10    Section 5-65. Energy Workforce Advisory Council.
11    (a) The Energy Workforce Advisory Council is hereby
12created within the Department.
13    (b) The Council shall consist of the following voting
14members appointed by the Governor with the advice and consent
15of the Senate, chosen to ensure diverse geographic
16representation:
17        (1) two members representing trade associations
18    representing companies active in the clean energy
19    industries;
20        (2) two members representing a labor union;
21        (3) one member who has participated in the workforce
22    development programs created under this Act;
23        (4) two members representing higher education;
24        (5) two members representing economic development
25    organizations;

 

 

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1        (6) two members representing local workforce
2    innovation boards;
3        (7) two residents of environmental justice
4    communities;
5        (8) three members from community-based organizations
6    in environmental justice communities and community-based
7    organizations serving low-income persons and families;
8        (9) two members who are policy or implementation
9    experts on small business development, contractor
10    incubation, or small business lending and financing needs;
11        (10) two members who are policy or implementation
12    experts on workforce development for populations and
13    individuals such as low-income persons and families,
14    environmental justice communities, BIPOC communities,
15    formerly convicted persons, persons who are or were in the
16    child welfare system, energy workers, gender nonconforming
17    and transgender individuals, and youth; and
18        (11) two representatives of clean energy businesses,
19    nonprofit organizations, or other groups that provide
20    clean energy.
21    The President of the Senate, the Minority Leader of the
22Senate, the Speaker of the House of Representatives, and the
23Minority Leader of the House of Representatives shall each
24appoint 2 nonvoting members of the Council.
25    (c) The Council shall:
26        (1) coordinate and inform on worker and contractor

 

 

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1    support priorities beyond current federal, State, local,
2    and private programs and resources;
3        (2) advise and produce recommendations for further
4    federal, State, and local programs and activities;
5        (3) fulfill other duties determined by the Council to
6    further the success of the Workforce Hubs, Incubators, and
7    Returning Residents Programs;
8        (4) review program performance metrics;
9        (5) provide recommendations to the Department on the
10    administration of the following programs:
11            (i) the Clean Jobs Workforce Network Program;
12            (ii) the Illinois Climate Works Preapprenticeship
13        Program;
14            (iii) the Clean Energy Contractor Incubator
15        Program;
16            (iv) the Returning Residents Clean Jobs Training
17        Program; and
18            (v) the Clean Energy Primes Contractor Accelerator
19        Program;
20        (6) recommend outreach opportunities to ensure that
21    program contracting, training, and other opportunities are
22    widely publicized;
23        (7) participate in independent program evaluations;
24    and
25        (8) assist the Department by providing insight into
26    how relevant State, local, and federal programs are viewed

 

 

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1    by residents, businesses, and institutions within their
2    respective communities.
3    (d) The Council shall conduct its first meeting within 30
4days after all members have been appointed. The Council shall
5meet quarterly after its first meeting. Additional hearings
6and public meetings are permitted at the discretion of the
7members. The Council may meet in person or through video or
8audio conference. Meeting times may be varied to accommodate
9Council member schedules.
10    (e) Members shall serve without compensation and shall be
11reimbursed for reasonable expenses incurred in the performance
12of their duties from funds appropriated for that purpose.
 
13    Section 5-90. Repealer. This Act is repealed 24 years
14after the effective date of this Act.
 
15    Section 5-95. The Illinois Finance Authority Act is
16amended by changing Sections 801-1, 801-5, 801-10, and 801-40
17and adding Article 850 as follows:
 
18    (20 ILCS 3501/801-1)
19    Sec. 801-1. Short Title. Articles 801 through 850 845 of
20this Act may be cited as the Illinois Finance Authority Act.
21References to "this Act" in Articles 801 through 850 845 are
22references to the Illinois Finance Authority Act.
23(Source: P.A. 95-331, eff. 8-21-07.)
 

 

 

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1    (20 ILCS 3501/801-5)
2    Sec. 801-5. Findings and declaration of policy. The
3General Assembly hereby finds, determines and declares:
4    (a) that there are a number of existing State authorities
5authorized to issue bonds to alleviate the conditions and
6promote the objectives set forth below; and to provide a
7stronger, better coordinated development effort, it is
8determined to be in the interest of promoting the health,
9safety, morals and general welfare of all the people of the
10State to consolidate certain of such existing authorities into
11one finance authority;
12    (b) that involuntary unemployment affects the health,
13safety, morals and general welfare of the people of the State
14of Illinois;
15    (c) that the economic burdens resulting from involuntary
16unemployment fall in part upon the State in the form of public
17assistance and reduced tax revenues, and in the event the
18unemployed worker and his family migrate elsewhere to find
19work, may also fall upon the municipalities and other taxing
20districts within the areas of unemployment in the form of
21reduced tax revenues, thereby endangering their financial
22ability to support necessary governmental services for their
23remaining inhabitants;
24    (d) that a vigorous growing economy is the basic source of
25job opportunities;

 

 

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1    (e) that protection against involuntary unemployment, its
2economic burdens and the spread of economic stagnation can
3best be provided by promoting, attracting, stimulating and
4revitalizing industry, manufacturing and commerce in the
5State;
6    (f) that the State has a responsibility to help create a
7favorable climate for new and improved job opportunities for
8its citizens by encouraging the development of commercial
9businesses and industrial and manufacturing plants within the
10State;
11    (g) that increased availability of funds for construction
12of new facilities and the expansion and improvement of
13existing facilities for industrial, commercial and
14manufacturing facilities will provide for new and continued
15employment in the construction industry and alleviate the
16burden of unemployment;
17    (h) that in the absence of direct governmental subsidies
18the unaided operations of private enterprise do not provide
19sufficient resources for residential construction,
20rehabilitation, rental or purchase, and that support from
21housing related commercial facilities is one means of
22stimulating residential construction, rehabilitation, rental
23and purchase;
24    (i) that it is in the public interest and the policy of
25this State to foster and promote by all reasonable means the
26provision of adequate capital markets and facilities for

 

 

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1borrowing money by units of local government, and for the
2financing of their respective public improvements and other
3governmental purposes within the State from proceeds of bonds
4or notes issued by those governmental units; and to assist
5local governmental units in fulfilling their needs for those
6purposes by use of creation of indebtedness;
7    (j) that it is in the public interest and the policy of
8this State to the extent possible, to reduce the costs of
9indebtedness to taxpayers and residents of this State and to
10encourage continued investor interest in the purchase of bonds
11or notes of governmental units as sound and preferred
12securities for investment; and to encourage governmental units
13to continue their independent undertakings of public
14improvements and other governmental purposes and the financing
15thereof, and to assist them in those activities by making
16funds available at reduced interest costs for orderly
17financing of those purposes, especially during periods of
18restricted credit or money supply, and particularly for those
19governmental units not otherwise able to borrow for those
20purposes;
21    (k) that in this State the following conditions exist: (i)
22an inadequate supply of funds at interest rates sufficiently
23low to enable persons engaged in agriculture in this State to
24pursue agricultural operations at present levels; (ii) that
25such inability to pursue agricultural operations lessens the
26supply of agricultural commodities available to fulfill the

 

 

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1needs of the citizens of this State; (iii) that such inability
2to continue operations decreases available employment in the
3agricultural sector of the State and results in unemployment
4and its attendant problems; (iv) that such conditions prevent
5the acquisition of an adequate capital stock of farm equipment
6and machinery, much of which is manufactured in this State,
7therefore impairing the productivity of agricultural land and,
8further, causing unemployment or lack of appropriate increase
9in employment in such manufacturing; (v) that such conditions
10are conducive to consolidation of acreage of agricultural land
11with fewer individuals living and farming on the traditional
12family farm; (vi) that these conditions result in a loss in
13population, unemployment and movement of persons from rural to
14urban areas accompanied by added costs to communities for
15creation of new public facilities and services; (vii) that
16there have been recurrent shortages of funds for agricultural
17purposes from private market sources at reasonable rates of
18interest; (viii) that these shortages have made the sale and
19purchase of agricultural land to family farmers a virtual
20impossibility in many parts of the State; (ix) that the
21ordinary operations of private enterprise have not in the past
22corrected these conditions; and (x) that a stable supply of
23adequate funds for agricultural financing is required to
24encourage family farmers in an orderly and sustained manner
25and to reduce the problems described above;
26    (l) that for the benefit of the people of the State of

 

 

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1Illinois, the conduct and increase of their commerce, the
2protection and enhancement of their welfare, the development
3of continued prosperity and the improvement of their health
4and living conditions it is essential that all the people of
5the State be given the fullest opportunity to learn and to
6develop their intellectual and mental capacities and skills;
7that to achieve these ends it is of the utmost importance that
8private institutions of higher education within the State be
9provided with appropriate additional means to assist the
10people of the State in achieving the required levels of
11learning and development of their intellectual and mental
12capacities and skills and that cultural institutions within
13the State be provided with appropriate additional means to
14expand the services and resources which they offer for the
15cultural, intellectual, scientific, educational and artistic
16enrichment of the people of the State;
17    (m) that in order to foster civic and neighborhood pride,
18citizens require access to facilities such as educational
19institutions, recreation, parks and open spaces, entertainment
20and sports, a reliable transportation network, cultural
21facilities and theaters and other facilities as authorized by
22this Act, and that it is in the best interests of the State to
23lower the costs of all such facilities by providing financing
24through the State;
25    (n) that to preserve and protect the health of the
26citizens of the State, and lower the costs of health care, that

 

 

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1financing for health facilities should be provided through the
2State; and it is hereby declared to be the policy of the State,
3in the interest of promoting the health, safety, morals and
4general welfare of all the people of the State, to address the
5conditions noted above, to increase job opportunities and to
6retain existing jobs in the State, by making available through
7the Illinois Finance Authority, hereinafter created, funds for
8the development, improvement and creation of industrial,
9housing, local government, educational, health, public purpose
10and other projects; to issue its bonds and notes to make funds
11at reduced rates and on more favorable terms for borrowing by
12local governmental units through the purchase of the bonds or
13notes of the governmental units; and to make or acquire loans
14for the acquisition and development of agricultural
15facilities; to provide financing for private institutions of
16higher education, cultural institutions, health facilities and
17other facilities and projects as authorized by this Act; and
18to grant broad powers to the Illinois Finance Authority to
19accomplish and to carry out these policies of the State which
20are in the public interest of the State and of its taxpayers
21and residents;
22    (o) that providing financing alternatives for projects
23that are located outside the State that are owned, operated,
24leased, managed by, or otherwise affiliated with, institutions
25located within the State would promote the economy of the
26State for the benefit of the health, welfare, safety, trade,

 

 

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1commerce, industry, and economy of the people of the State by
2creating employment opportunities in the State and lowering
3the cost of accessing healthcare, private education, or
4cultural institutions in the State by reducing the cost of
5financing or operating those projects; and
6    (p) that the realization of the objectives of the
7Authority identified in this Act including, without
8limitation, those designed (1) to assist and enable veterans,
9minorities, women and disabled individuals to own and operate
10small businesses; (2) to assist in the delivery of
11agricultural assistance; and (3) to aid, assist, and encourage
12economic growth and development within this State, will be
13enhanced by empowering the Authority to purchase loan
14participations from participating lenders; .
15    (q) that climate change threatens the health, welfare, and
16prosperity of all the residents of the State;
17    (r) combating climate change is necessary to preserve and
18enhance the health, welfare, and prosperity of all the
19residents of the State;
20    (s) that the promotion of the development and
21implementation of clean energy is necessary to combat climate
22change and is hereby declared to be the policy of the State;
23and
24    (t) that designating the Authority as the "Climate Bank"
25to aid in all respects with providing financial assistance,
26programs, and products to finance and otherwise develop and

 

 

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1implement equitable clean energy opportunities in the State to
2mitigate or adapt to the negative consequences of climate
3change in an equitable manner will further the clean energy
4policy of the State.
5(Source: P.A. 100-919, eff. 8-17-18.)
 
6    (20 ILCS 3501/801-10)
7    Sec. 801-10. Definitions. The following terms, whenever
8used or referred to in this Act, shall have the following
9meanings, except in such instances where the context may
10clearly indicate otherwise:
11    (a) The term "Authority" means the Illinois Finance
12Authority created by this Act.
13    (b) The term "project" means an industrial project, clean
14energy project, conservation project, housing project, public
15purpose project, higher education project, health facility
16project, cultural institution project, municipal bond program
17project, PACE Project, agricultural facility or agribusiness,
18and "project" may include any combination of one or more of the
19foregoing undertaken jointly by any person with one or more
20other persons.
21    (c) The term "public purpose project" means (i) any
22project or facility, including without limitation land,
23buildings, structures, machinery, equipment and all other real
24and personal property, which is authorized or required by law
25to be acquired, constructed, improved, rehabilitated,

 

 

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1reconstructed, replaced or maintained by any unit of
2government or any other lawful public purpose, including
3provision of working capital, which is authorized or required
4by law to be undertaken by any unit of government or (ii) costs
5incurred and other expenditures, including expenditures for
6management, investment, or working capital costs, incurred in
7connection with the reform, consolidation, or implementation
8of the transition process as described in Articles 22B and 22C
9of the Illinois Pension Code.
10    (d) The term "industrial project" means the acquisition,
11construction, refurbishment, creation, development or
12redevelopment of any facility, equipment, machinery, real
13property or personal property for use by any instrumentality
14of the State or its political subdivisions, for use by any
15person or institution, public or private, for profit or not
16for profit, or for use in any trade or business, including, but
17not limited to, any industrial, manufacturing, clean energy,
18or commercial enterprise that is located within or outside the
19State, provided that, with respect to a project involving
20property located outside the State, the property must be
21owned, operated, leased or managed by an entity located within
22the State or an entity affiliated with an entity located
23within the State, and which is (1) a capital project or clean
24energy project, including, but not limited to: (i) land and
25any rights therein, one or more buildings, structures or other
26improvements, machinery and equipment, whether now existing or

 

 

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1hereafter acquired, and whether or not located on the same
2site or sites; (ii) all appurtenances and facilities
3incidental to the foregoing, including, but not limited to,
4utilities, access roads, railroad sidings, track, docking and
5similar facilities, parking facilities, dockage, wharfage,
6railroad roadbed, track, trestle, depot, terminal, switching
7and signaling or related equipment, site preparation and
8landscaping; and (iii) all non-capital costs and expenses
9relating thereto or (2) any addition to, renovation,
10rehabilitation or improvement of a capital project or a clean
11energy project, or (3) any activity or undertaking within or
12outside the State, provided that, with respect to a project
13involving property located outside the State, the property
14must be owned, operated, leased or managed by an entity
15located within the State or an entity affiliated with an
16entity located within the State, which the Authority
17determines will aid, assist or encourage economic growth,
18development or redevelopment within the State or any area
19thereof, will promote the expansion, retention or
20diversification of employment opportunities within the State
21or any area thereof or will aid in stabilizing or developing
22any industry or economic sector of the State economy. The term
23"industrial project" also means the production of motion
24pictures.
25    (e) The term "bond" or "bonds" shall include bonds, notes
26(including bond, grant or revenue anticipation notes),

 

 

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1certificates and/or other evidences of indebtedness
2representing an obligation to pay money, including refunding
3bonds.
4    (f) The terms "lease agreement" and "loan agreement" shall
5mean: (i) an agreement whereby a project acquired by the
6Authority by purchase, gift or lease is leased to any person,
7corporation or unit of local government which will use or
8cause the project to be used as a project as heretofore defined
9upon terms providing for lease rental payments at least
10sufficient to pay when due all principal of, interest and
11premium, if any, on any bonds of the Authority issued with
12respect to such project, providing for the maintenance,
13insuring and operation of the project on terms satisfactory to
14the Authority, providing for disposition of the project upon
15termination of the lease term, including purchase options or
16abandonment of the premises, and such other terms as may be
17deemed desirable by the Authority, or (ii) any agreement
18pursuant to which the Authority agrees to loan the proceeds of
19its bonds issued with respect to a project or other funds of
20the Authority to any person which will use or cause the project
21to be used as a project as heretofore defined upon terms
22providing for loan repayment installments at least sufficient
23to pay when due all principal of, interest and premium, if any,
24on any bonds of the Authority, if any, issued with respect to
25the project, and providing for maintenance, insurance and
26other matters as may be deemed desirable by the Authority.

 

 

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1    (g) The term "financial aid" means the expenditure of
2Authority funds or funds provided by the Authority through the
3issuance of its bonds, notes or other evidences of
4indebtedness or from other sources for the development,
5construction, acquisition or improvement of a project.
6    (h) The term "person" means an individual, corporation,
7unit of government, business trust, estate, trust, partnership
8or association, 2 or more persons having a joint or common
9interest, or any other legal entity.
10    (i) The term "unit of government" means the federal
11government, the State or unit of local government, a school
12district, or any agency or instrumentality, office, officer,
13department, division, bureau, commission, college or
14university thereof.
15    (j) The term "health facility" means: (a) any public or
16private institution, place, building, or agency required to be
17licensed under the Hospital Licensing Act; (b) any public or
18private institution, place, building, or agency required to be
19licensed under the Nursing Home Care Act, the Specialized
20Mental Health Rehabilitation Act of 2013, the ID/DD Community
21Care Act, or the MC/DD Act; (c) any public or licensed private
22hospital as defined in the Mental Health and Developmental
23Disabilities Code; (d) any such facility exempted from such
24licensure when the Director of Public Health attests that such
25exempted facility meets the statutory definition of a facility
26subject to licensure; (e) any other public or private health

 

 

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1service institution, place, building, or agency which the
2Director of Public Health attests is subject to certification
3by the Secretary, U.S. Department of Health and Human Services
4under the Social Security Act, as now or hereafter amended, or
5which the Director of Public Health attests is subject to
6standard-setting by a recognized public or voluntary
7accrediting or standard-setting agency; (f) any public or
8private institution, place, building or agency engaged in
9providing one or more supporting services to a health
10facility; (g) any public or private institution, place,
11building or agency engaged in providing training in the
12healing arts, including, but not limited to, schools of
13medicine, dentistry, osteopathy, optometry, podiatry, pharmacy
14or nursing, schools for the training of x-ray, laboratory or
15other health care technicians and schools for the training of
16para-professionals in the health care field; (h) any public or
17private congregate, life or extended care or elderly housing
18facility or any public or private home for the aged or infirm,
19including, without limitation, any Facility as defined in the
20Life Care Facilities Act; (i) any public or private mental,
21emotional or physical rehabilitation facility or any public or
22private educational, counseling, or rehabilitation facility or
23home, for those persons with a developmental disability, those
24who are physically ill or disabled, the emotionally disturbed,
25those persons with a mental illness or persons with learning
26or similar disabilities or problems; (j) any public or private

 

 

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1alcohol, drug or substance abuse diagnosis, counseling
2treatment or rehabilitation facility, (k) any public or
3private institution, place, building or agency licensed by the
4Department of Children and Family Services or which is not so
5licensed but which the Director of Children and Family
6Services attests provides child care, child welfare or other
7services of the type provided by facilities subject to such
8licensure; (l) any public or private adoption agency or
9facility; and (m) any public or private blood bank or blood
10center. "Health facility" also means a public or private
11structure or structures suitable primarily for use as a
12laboratory, laundry, nurses or interns residence or other
13housing or hotel facility used in whole or in part for staff,
14employees or students and their families, patients or
15relatives of patients admitted for treatment or care in a
16health facility, or persons conducting business with a health
17facility, physician's facility, surgicenter, administration
18building, research facility, maintenance, storage or utility
19facility and all structures or facilities related to any of
20the foregoing or required or useful for the operation of a
21health facility, including parking or other facilities or
22other supporting service structures required or useful for the
23orderly conduct of such health facility. "Health facility"
24also means, with respect to a project located outside the
25State, any public or private institution, place, building, or
26agency which provides services similar to those described

 

 

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1above, provided that such project is owned, operated, leased
2or managed by a participating health institution located
3within the State, or a participating health institution
4affiliated with an entity located within the State.
5    (k) The term "participating health institution" means (i)
6a private corporation or association or (ii) a public entity
7of this State, in either case authorized by the laws of this
8State or the applicable state to provide or operate a health
9facility as defined in this Act and which, pursuant to the
10provisions of this Act, undertakes the financing, construction
11or acquisition of a project or undertakes the refunding or
12refinancing of obligations, loans, indebtedness or advances as
13provided in this Act.
14    (l) The term "health facility project", means a specific
15health facility work or improvement to be financed or
16refinanced (including without limitation through reimbursement
17of prior expenditures), acquired, constructed, enlarged,
18remodeled, renovated, improved, furnished, or equipped, with
19funds provided in whole or in part hereunder, any accounts
20receivable, working capital, liability or insurance cost or
21operating expense financing or refinancing program of a health
22facility with or involving funds provided in whole or in part
23hereunder, or any combination thereof.
24    (m) The term "bond resolution" means the resolution or
25resolutions authorizing the issuance of, or providing terms
26and conditions related to, bonds issued under this Act and

 

 

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1includes, where appropriate, any trust agreement, trust
2indenture, indenture of mortgage or deed of trust providing
3terms and conditions for such bonds.
4    (n) The term "property" means any real, personal or mixed
5property, whether tangible or intangible, or any interest
6therein, including, without limitation, any real estate,
7leasehold interests, appurtenances, buildings, easements,
8equipment, furnishings, furniture, improvements, machinery,
9rights of way, structures, accounts, contract rights or any
10interest therein.
11    (o) The term "revenues" means, with respect to any
12project, the rents, fees, charges, interest, principal
13repayments, collections and other income or profit derived
14therefrom.
15    (p) The term "higher education project" means, in the case
16of a private institution of higher education, an educational
17facility to be acquired, constructed, enlarged, remodeled,
18renovated, improved, furnished, or equipped, or any
19combination thereof.
20    (q) The term "cultural institution project" means, in the
21case of a cultural institution, a cultural facility to be
22acquired, constructed, enlarged, remodeled, renovated,
23improved, furnished, or equipped, or any combination thereof.
24    (r) The term "educational facility" means any property
25located within the State, or any property located outside the
26State, provided that, if the property is located outside the

 

 

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1State, it must be owned, operated, leased or managed by an
2entity located within the State or an entity affiliated with
3an entity located within the State, in each case constructed
4or acquired before or after the effective date of this Act,
5which is or will be, in whole or in part, suitable for the
6instruction, feeding, recreation or housing of students, the
7conducting of research or other work of a private institution
8of higher education, the use by a private institution of
9higher education in connection with any educational, research
10or related or incidental activities then being or to be
11conducted by it, or any combination of the foregoing,
12including, without limitation, any such property suitable for
13use as or in connection with any one or more of the following:
14an academic facility, administrative facility, agricultural
15facility, assembly hall, athletic facility, auditorium,
16boating facility, campus, communication facility, computer
17facility, continuing education facility, classroom, dining
18hall, dormitory, exhibition hall, fire fighting facility, fire
19prevention facility, food service and preparation facility,
20gymnasium, greenhouse, health care facility, hospital,
21housing, instructional facility, laboratory, library,
22maintenance facility, medical facility, museum, offices,
23parking area, physical education facility, recreational
24facility, research facility, stadium, storage facility,
25student union, study facility, theatre or utility.
26    (s) The term "cultural facility" means any property

 

 

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1located within the State, or any property located outside the
2State, provided that, if the property is located outside the
3State, it must be owned, operated, leased or managed by an
4entity located within the State or an entity affiliated with
5an entity located within the State, in each case constructed
6or acquired before or after the effective date of this Act,
7which is or will be, in whole or in part, suitable for the
8particular purposes or needs of a cultural institution,
9including, without limitation, any such property suitable for
10use as or in connection with any one or more of the following:
11an administrative facility, aquarium, assembly hall,
12auditorium, botanical garden, exhibition hall, gallery,
13greenhouse, library, museum, scientific laboratory, theater or
14zoological facility, and shall also include, without
15limitation, books, works of art or music, animal, plant or
16aquatic life or other items for display, exhibition or
17performance. The term "cultural facility" includes buildings
18on the National Register of Historic Places which are owned or
19operated by nonprofit entities.
20    (t) "Private institution of higher education" means a
21not-for-profit educational institution which is not owned by
22the State or any political subdivision, agency,
23instrumentality, district or municipality thereof, which is
24authorized by law to provide a program of education beyond the
25high school level and which:
26        (1) Admits as regular students only individuals having

 

 

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1    a certificate of graduation from a high school, or the
2    recognized equivalent of such a certificate;
3        (2) Provides an educational program for which it
4    awards a bachelor's degree, or provides an educational
5    program, admission into which is conditioned upon the
6    prior attainment of a bachelor's degree or its equivalent,
7    for which it awards a postgraduate degree, or provides not
8    less than a 2-year program which is acceptable for full
9    credit toward such a degree, or offers a 2-year program in
10    engineering, mathematics, or the physical or biological
11    sciences which is designed to prepare the student to work
12    as a technician and at a semiprofessional level in
13    engineering, scientific, or other technological fields
14    which require the understanding and application of basic
15    engineering, scientific, or mathematical principles or
16    knowledge;
17        (3) Is accredited by a nationally recognized
18    accrediting agency or association or, if not so
19    accredited, is an institution whose credits are accepted,
20    on transfer, by not less than 3 institutions which are so
21    accredited, for credit on the same basis as if transferred
22    from an institution so accredited, and holds an unrevoked
23    certificate of approval under the Private College Act from
24    the Board of Higher Education, or is qualified as a
25    "degree granting institution" under the Academic Degree
26    Act; and

 

 

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1        (4) Does not discriminate in the admission of students
2    on the basis of race or color. "Private institution of
3    higher education" also includes any "academic
4    institution".
5    (u) The term "academic institution" means any
6not-for-profit institution which is not owned by the State or
7any political subdivision, agency, instrumentality, district
8or municipality thereof, which institution engages in, or
9facilitates academic, scientific, educational or professional
10research or learning in a field or fields of study taught at a
11private institution of higher education. Academic institutions
12include, without limitation, libraries, archives, academic,
13scientific, educational or professional societies,
14institutions, associations or foundations having such
15purposes.
16    (v) The term "cultural institution" means any
17not-for-profit institution which is not owned by the State or
18any political subdivision, agency, instrumentality, district
19or municipality thereof, which institution engages in the
20cultural, intellectual, scientific, educational or artistic
21enrichment of the people of the State. Cultural institutions
22include, without limitation, aquaria, botanical societies,
23historical societies, libraries, museums, performing arts
24associations or societies, scientific societies and zoological
25societies.
26    (w) The term "affiliate" means, with respect to financing

 

 

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1of an agricultural facility or an agribusiness, any lender,
2any person, firm or corporation controlled by, or under common
3control with, such lender, and any person, firm or corporation
4controlling such lender.
5    (x) The term "agricultural facility" means land, any
6building or other improvement thereon or thereto, and any
7personal properties deemed necessary or suitable for use,
8whether or not now in existence, in farming, ranching, the
9production of agricultural commodities (including, without
10limitation, the products of aquaculture, hydroponics and
11silviculture) or the treating, processing or storing of such
12agricultural commodities when such activities are customarily
13engaged in by farmers as a part of farming and which land,
14building, improvement or personal property is located within
15the State, or is located outside the State, provided that, if
16such property is located outside the State, it must be owned,
17operated, leased, or managed by an entity located within the
18State or an entity affiliated with an entity located within
19the State.
20    (y) The term "lender" with respect to financing of an
21agricultural facility or an agribusiness, means any federal or
22State chartered bank, Federal Land Bank, Production Credit
23Association, Bank for Cooperatives, federal or State chartered
24savings and loan association or building and loan association,
25Small Business Investment Company or any other institution
26qualified within this State to originate and service loans,

 

 

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1including, but without limitation to, insurance companies,
2credit unions and mortgage loan companies. "Lender" also means
3a wholly owned subsidiary of a manufacturer, seller or
4distributor of goods or services that makes loans to
5businesses or individuals, commonly known as a "captive
6finance company".
7    (z) The term "agribusiness" means any sole proprietorship,
8limited partnership, co-partnership, joint venture,
9corporation or cooperative which operates or will operate a
10facility located within the State or outside the State,
11provided that, if any facility is located outside the State,
12it must be owned, operated, leased, or managed by an entity
13located within the State or an entity affiliated with an
14entity located within the State, that is related to the
15processing of agricultural commodities (including, without
16limitation, the products of aquaculture, hydroponics and
17silviculture) or the manufacturing, production or construction
18of agricultural buildings, structures, equipment, implements,
19and supplies, or any other facilities or processes used in
20agricultural production. Agribusiness includes but is not
21limited to the following:
22        (1) grain handling and processing, including grain
23    storage, drying, treatment, conditioning, mailing and
24    packaging;
25        (2) seed and feed grain development and processing;
26        (3) fruit and vegetable processing, including

 

 

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1    preparation, canning and packaging;
2        (4) processing of livestock and livestock products,
3    dairy products, poultry and poultry products, fish or
4    apiarian products, including slaughter, shearing,
5    collecting, preparation, canning and packaging;
6        (5) fertilizer and agricultural chemical
7    manufacturing, processing, application and supplying;
8        (6) farm machinery, equipment and implement
9    manufacturing and supplying;
10        (7) manufacturing and supplying of agricultural
11    commodity processing machinery and equipment, including
12    machinery and equipment used in slaughter, treatment,
13    handling, collecting, preparation, canning or packaging of
14    agricultural commodities;
15        (8) farm building and farm structure manufacturing,
16    construction and supplying;
17        (9) construction, manufacturing, implementation,
18    supplying or servicing of irrigation, drainage and soil
19    and water conservation devices or equipment;
20        (10) fuel processing and development facilities that
21    produce fuel from agricultural commodities or byproducts;
22        (11) facilities and equipment for processing and
23    packaging agricultural commodities specifically for
24    export;
25        (12) facilities and equipment for forestry product
26    processing and supplying, including sawmilling operations,

 

 

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1    wood chip operations, timber harvesting operations, and
2    manufacturing of prefabricated buildings, paper, furniture
3    or other goods from forestry products;
4        (13) facilities and equipment for research and
5    development of products, processes and equipment for the
6    production, processing, preparation or packaging of
7    agricultural commodities and byproducts.
8    (aa) The term "asset" with respect to financing of any
9agricultural facility or any agribusiness, means, but is not
10limited to the following: cash crops or feed on hand;
11livestock held for sale; breeding stock; marketable bonds and
12securities; securities not readily marketable; accounts
13receivable; notes receivable; cash invested in growing crops;
14net cash value of life insurance; machinery and equipment;
15cars and trucks; farm and other real estate including life
16estates and personal residence; value of beneficial interests
17in trusts; government payments or grants; and any other
18assets.
19    (bb) The term "liability" with respect to financing of any
20agricultural facility or any agribusiness shall include, but
21not be limited to the following: accounts payable; notes or
22other indebtedness owed to any source; taxes; rent; amounts
23owed on real estate contracts or real estate mortgages;
24judgments; accrued interest payable; and any other liability.
25    (cc) The term "Predecessor Authorities" means those
26authorities as described in Section 845-75.

 

 

SB2408 Enrolled- 85 -LRB102 11366 BMS 16699 b

1    (dd) The term "housing project" means a specific work or
2improvement located within the State or outside the State and
3undertaken to provide residential dwelling accommodations,
4including the acquisition, construction or rehabilitation of
5lands, buildings and community facilities and in connection
6therewith to provide nonhousing facilities which are part of
7the housing project, including land, buildings, improvements,
8equipment and all ancillary facilities for use for offices,
9stores, retirement homes, hotels, financial institutions,
10service, health care, education, recreation or research
11establishments, or any other commercial purpose which are or
12are to be related to a housing development, provided that any
13work or improvement located outside the State is owned,
14operated, leased or managed by an entity located within the
15State, or any entity affiliated with an entity located within
16the State.
17    (ee) The term "conservation project" means any project
18including the acquisition, construction, rehabilitation,
19maintenance, operation, or upgrade that is intended to create
20or expand open space or to reduce energy usage through
21efficiency measures. For the purpose of this definition, "open
22space" has the definition set forth under Section 10 of the
23Illinois Open Land Trust Act.
24    (ff) The term "significant presence" means the existence
25within the State of the national or regional headquarters of
26an entity or group or such other facility of an entity or group

 

 

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1of entities where a significant amount of the business
2functions are performed for such entity or group of entities.
3    (gg) The term "municipal bond issuer" means the State or
4any other state or commonwealth of the United States, or any
5unit of local government, school district, agency or
6instrumentality, office, department, division, bureau,
7commission, college or university thereof located in the State
8or any other state or commonwealth of the United States.
9    (hh) The term "municipal bond program project" means a
10program for the funding of the purchase of bonds, notes or
11other obligations issued by or on behalf of a municipal bond
12issuer.
13    (ii) The term "participating lender" means any trust
14company, bank, savings bank, credit union, merchant bank,
15investment bank, broker, investment trust, pension fund,
16building and loan association, savings and loan association,
17insurance company, venture capital company, or other
18institution approved by the Authority which provides a portion
19of the financing for a project.
20    (jj) The term "loan participation" means any loan in which
21the Authority co-operates with a participating lender to
22provide all or a portion of the financing for a project.
23    (kk) The term "PACE Project" means an energy project as
24defined in Section 5 of the Property Assessed Clean Energy
25Act.
26    (ll) The term "clean energy" means energy generation that

 

 

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1is substantially free (90% or more) of carbon dioxide
2emissions by design or operations, or that otherwise
3contributes to the reduction in emissions of environmentally
4hazardous materials or reduces the volume of environmentally
5dangerous materials.
6    (mm) The term "clean energy project" means the
7acquisition, construction, refurbishment, creation,
8development or redevelopment of any facility, equipment,
9machinery, real property, or personal property for use by the
10State or any unit of local government, school district, agency
11or instrumentality, office, department, division, bureau,
12commission, college, or university of the State, for use by
13any person or institution, public or private, for profit or
14not for profit, or for use in any trade or business, which the
15Authority determines will aid, assist, or encourage the
16development or implementation of clean energy in the State, or
17as otherwise contemplated by Article 850.
18    (nn) The term "Climate Bank" means the Authority in the
19exercise of those powers conferred on it by this Act related to
20clean energy or clean water, drinking water, or wastewater
21treatment.
22    (oo) "equity investment eligible community" and "eligible
23community" mean the geographic areas throughout Illinois that
24would most benefit from equitable investments by the State
25designed to combat discrimination. Specifically, the eligible
26communities shall be defined as the following areas:

 

 

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1        (1) R3 Areas as established pursuant to Section 10-40
2    of the Cannabis Regulation and Tax Act, where residents
3    have historically been excluded from economic
4    opportunities, including opportunities in the energy
5    sector; and
6        (2) Environmental justice communities, as defined by
7    the Illinois Power Agency pursuant to the Illinois Power
8    Agency Act, where residents have historically been subject
9    to disproportionate burdens of pollution, including
10    pollution from the energy sector.
11    (pp) "Equity investment eligible person" and "eligible
12person" mean the persons who would most benefit from equitable
13investments by the State designed to combat discrimination.
14Specifically, eligible persons means the following people:
15        (1) persons whose primary residence is in an equity
16    investment eligible community;
17        (2) persons who are graduates of or currently enrolled
18    in the foster care system; or
19        (3) persons who were formerly incarcerated.
20    (qq) "Environmental justice community" means the
21definition of that term based on existing methodologies and
22findings used and as may be updated by the Illinois Power
23Agency and its program administrator in the Illinois Solar for
24All Program.
25(Source: P.A. 100-919, eff. 8-17-18; 101-610, eff. 1-1-20.)
 

 

 

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1    (20 ILCS 3501/801-40)
2    Sec. 801-40. In addition to the powers otherwise
3authorized by law and in addition to the foregoing general
4corporate powers, the Authority shall also have the following
5additional specific powers to be exercised in furtherance of
6the purposes of this Act.
7    (a) The Authority shall have power (i) to accept grants,
8loans or appropriations from the federal government or the
9State, or any agency or instrumentality thereof, or, in the
10case of clean energy projects, any not-for-profit
11philanthropic or other charitable organization, public or
12private, to be used for the operating expenses of the
13Authority, or for any purposes of the Authority, including the
14making of direct loans of such funds with respect to projects,
15and (ii) to enter into any agreement with the federal
16government or the State, or any agency or instrumentality
17thereof, in relationship to such grants, loans or
18appropriations.
19    (b) The Authority shall have power to procure and enter
20into contracts for any type of insurance and indemnity
21agreements covering loss or damage to property from any cause,
22including loss of use and occupancy, or covering any other
23insurable risk.
24    (c) The Authority shall have the continuing power to issue
25bonds for its corporate purposes. Bonds may be issued by the
26Authority in one or more series and may provide for the payment

 

 

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1of any interest deemed necessary on such bonds, of the costs of
2issuance of such bonds, of any premium on any insurance, or of
3the cost of any guarantees, letters of credit or other similar
4documents, may provide for the funding of the reserves deemed
5necessary in connection with such bonds, and may provide for
6the refunding or advance refunding of any bonds or for
7accounts deemed necessary in connection with any purpose of
8the Authority. The bonds may bear interest payable at any time
9or times and at any rate or rates, notwithstanding any other
10provision of law to the contrary, and such rate or rates may be
11established by an index or formula which may be implemented or
12established by persons appointed or retained therefor by the
13Authority, or may bear no interest or may bear interest
14payable at maturity or upon redemption prior to maturity, may
15bear such date or dates, may be payable at such time or times
16and at such place or places, may mature at any time or times
17not later than 40 years from the date of issuance, may be sold
18at public or private sale at such time or times and at such
19price or prices, may be secured by such pledges, reserves,
20guarantees, letters of credit, insurance contracts or other
21similar credit support or liquidity instruments, may be
22executed in such manner, may be subject to redemption prior to
23maturity, may provide for the registration of the bonds, and
24may be subject to such other terms and conditions all as may be
25provided by the resolution or indenture authorizing the
26issuance of such bonds. The holder or holders of any bonds

 

 

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1issued by the Authority may bring suits at law or proceedings
2in equity to compel the performance and observance by any
3person or by the Authority or any of its agents or employees of
4any contract or covenant made with the holders of such bonds
5and to compel such person or the Authority and any of its
6agents or employees to perform any duties required to be
7performed for the benefit of the holders of any such bonds by
8the provision of the resolution authorizing their issuance,
9and to enjoin such person or the Authority and any of its
10agents or employees from taking any action in conflict with
11any such contract or covenant. Notwithstanding the form and
12tenor of any such bonds and in the absence of any express
13recital on the face thereof that it is non-negotiable, all
14such bonds shall be negotiable instruments. Pending the
15preparation and execution of any such bonds, temporary bonds
16may be issued as provided by the resolution. The bonds shall be
17sold by the Authority in such manner as it shall determine. The
18bonds may be secured as provided in the authorizing resolution
19by the receipts, revenues, income and other available funds of
20the Authority and by any amounts derived by the Authority from
21the loan agreement or lease agreement with respect to the
22project or projects; and bonds may be issued as general
23obligations of the Authority payable from such revenues, funds
24and obligations of the Authority as the bond resolution shall
25provide, or may be issued as limited obligations with a claim
26for payment solely from such revenues, funds and obligations

 

 

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1as the bond resolution shall provide. The Authority may grant
2a specific pledge or assignment of and lien on or security
3interest in such rights, revenues, income, or amounts and may
4grant a specific pledge or assignment of and lien on or
5security interest in any reserves, funds or accounts
6established in the resolution authorizing the issuance of
7bonds. Any such pledge, assignment, lien or security interest
8for the benefit of the holders of the Authority's bonds shall
9be valid and binding from the time the bonds are issued without
10any physical delivery or further act, and shall be valid and
11binding as against and prior to the claims of all other parties
12having claims against the Authority or any other person
13irrespective of whether the other parties have notice of the
14pledge, assignment, lien or security interest. As evidence of
15such pledge, assignment, lien and security interest, the
16Authority may execute and deliver a mortgage, trust agreement,
17indenture or security agreement or an assignment thereof. A
18remedy for any breach or default of the terms of any such
19agreement by the Authority may be by mandamus proceedings in
20any court of competent jurisdiction to compel the performance
21and compliance therewith, but the agreement may prescribe by
22whom or on whose behalf such action may be instituted. It is
23expressly understood that the Authority may, but need not,
24acquire title to any project with respect to which it
25exercises its authority.
26    (d) With respect to the powers granted by this Act, the

 

 

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1Authority may adopt rules and regulations prescribing the
2procedures by which persons may apply for assistance under
3this Act. Nothing herein shall be deemed to preclude the
4Authority, prior to the filing of any formal application, from
5conducting preliminary discussions and investigations with
6respect to the subject matter of any prospective application.
7    (e) The Authority shall have power to acquire by purchase,
8lease, gift or otherwise any property or rights therein from
9any person useful for its purposes, whether improved for the
10purposes of any prospective project, or unimproved. The
11Authority may also accept any donation of funds for its
12purposes from any such source. The Authority shall have no
13independent power of condemnation but may acquire any property
14or rights therein obtained upon condemnation by any other
15authority, governmental entity or unit of local government
16with such power.
17    (f) The Authority shall have power to develop, construct
18and improve either under its own direction, or through
19collaboration with any approved applicant, or to acquire
20through purchase or otherwise, any project, using for such
21purpose the proceeds derived from the sale of its bonds or from
22governmental loans or grants, and to hold title in the name of
23the Authority to such projects.
24    (g) The Authority shall have power to lease pursuant to a
25lease agreement any project so developed and constructed or
26acquired to the approved tenant on such terms and conditions

 

 

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1as may be appropriate to further the purposes of this Act and
2to maintain the credit of the Authority. Any such lease may
3provide for either the Authority or the approved tenant to
4assume initially, in whole or in part, the costs of
5maintenance, repair and improvements during the leasehold
6period. In no case, however, shall the total rentals from any
7project during any initial leasehold period or the total loan
8repayments to be made pursuant to any loan agreement, be less
9than an amount necessary to return over such lease or loan
10period (1) all costs incurred in connection with the
11development, construction, acquisition or improvement of the
12project and for repair, maintenance and improvements thereto
13during the period of the lease or loan; provided, however,
14that the rentals or loan repayments need not include costs met
15through the use of funds other than those obtained by the
16Authority through the issuance of its bonds or governmental
17loans; (2) a reasonable percentage additive to be agreed upon
18by the Authority and the borrower or tenant to cover a properly
19allocable portion of the Authority's general expenses,
20including, but not limited to, administrative expenses,
21salaries and general insurance, and (3) an amount sufficient
22to pay when due all principal of, interest and premium, if any
23on, any bonds issued by the Authority with respect to the
24project. The portion of total rentals payable under clause (3)
25of this subsection (g) shall be deposited in such special
26accounts, including all sinking funds, acquisition or

 

 

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1construction funds, debt service and other funds as provided
2by any resolution, mortgage or trust agreement of the
3Authority pursuant to which any bond is issued.
4    (h) The Authority has the power, upon the termination of
5any leasehold period of any project, to sell or lease for a
6further term or terms such project on such terms and
7conditions as the Authority shall deem reasonable and
8consistent with the purposes of the Act. The net proceeds from
9all such sales and the revenues or income from such leases
10shall be used to satisfy any indebtedness of the Authority
11with respect to such project and any balance may be used to pay
12any expenses of the Authority or be used for the further
13development, construction, acquisition or improvement of
14projects. In the event any project is vacated by a tenant prior
15to the termination of the initial leasehold period, the
16Authority shall sell or lease the facilities of the project on
17the most advantageous terms available. The net proceeds of any
18such disposition shall be treated in the same manner as the
19proceeds from sales or the revenues or income from leases
20subsequent to the termination of any initial leasehold period.
21    (i) The Authority shall have the power to make loans, or to
22purchase loan participations in loans made, to persons to
23finance a project, to enter into loan agreements or agreements
24with participating lenders with respect thereto, and to accept
25guarantees from persons of its loans or the resultant
26evidences of obligations of the Authority.

 

 

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1    (j) The Authority may fix, determine, charge and collect
2any premiums, fees, charges, costs and expenses, including,
3without limitation, any application fees, commitment fees,
4program fees, financing charges or publication fees from any
5person in connection with its activities under this Act.
6    (k) In addition to the funds established as provided
7herein, the Authority shall have the power to create and
8establish such reserve funds and accounts as may be necessary
9or desirable to accomplish its purposes under this Act and to
10deposit its available monies into the funds and accounts.
11    (l) At the request of the governing body of any unit of
12local government, the Authority is authorized to market such
13local government's revenue bond offerings by preparing bond
14issues for sale, advertising for sealed bids, receiving bids
15at its offices, making the award to the bidder that offers the
16most favorable terms or arranging for negotiated placements or
17underwritings of such securities. The Authority may, at its
18discretion, offer for concurrent sale the revenue bonds of
19several local governments. Sales by the Authority of revenue
20bonds under this Section shall in no way imply State guarantee
21of such debt issue. The Authority may require such financial
22information from participating local governments as it deems
23necessary in order to carry out the purposes of this
24subsection (1).
25    (m) The Authority may make grants to any county to which
26Division 5-37 of the Counties Code is applicable to assist in

 

 

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1the financing of capital development, construction and
2renovation of new or existing facilities for hospitals and
3health care facilities under that Act. Such grants may only be
4made from funds appropriated for such purposes from the Build
5Illinois Bond Fund.
6    (n) The Authority may establish an urban development
7action grant program for the purpose of assisting
8municipalities in Illinois which are experiencing severe
9economic distress to help stimulate economic development
10activities needed to aid in economic recovery. The Authority
11shall determine the types of activities and projects for which
12the urban development action grants may be used, provided that
13such projects and activities are broadly defined to include
14all reasonable projects and activities the primary objectives
15of which are the development of viable urban communities,
16including decent housing and a suitable living environment,
17and expansion of economic opportunity, principally for persons
18of low and moderate incomes. The Authority shall enter into
19grant agreements from monies appropriated for such purposes
20from the Build Illinois Bond Fund. The Authority shall monitor
21the use of the grants, and shall provide for audits of the
22funds as well as recovery by the Authority of any funds
23determined to have been spent in violation of this subsection
24(n) or any rule or regulation promulgated hereunder. The
25Authority shall provide technical assistance with regard to
26the effective use of the urban development action grants. The

 

 

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1Authority shall file an annual report to the General Assembly
2concerning the progress of the grant program.
3    (o) The Authority may establish a Housing Partnership
4Program whereby the Authority provides zero-interest loans to
5municipalities for the purpose of assisting in the financing
6of projects for the rehabilitation of affordable multi-family
7housing for low and moderate income residents. The Authority
8may provide such loans only upon a municipality's providing
9evidence that it has obtained private funding for the
10rehabilitation project. The Authority shall provide 3 State
11dollars for every 7 dollars obtained by the municipality from
12sources other than the State of Illinois. The loans shall be
13made from monies appropriated for such purpose from the Build
14Illinois Bond Fund. The total amount of loans available under
15the Housing Partnership Program shall not exceed $30,000,000.
16State loan monies under this subsection shall be used only for
17the acquisition and rehabilitation of existing buildings
18containing 4 or more dwelling units. The terms of any loan made
19by the municipality under this subsection shall require
20repayment of the loan to the municipality upon any sale or
21other transfer of the project. In addition, the Authority may
22use any moneys appropriated for such purpose from the Build
23Illinois Bond Fund, including funds loaned under this
24subsection and repaid as principal or interest, and investment
25income on such funds, to make the loans authorized by
26subsection (z), without regard to any restrictions or

 

 

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1limitations provided in this subsection.
2    (p) The Authority may award grants to universities and
3research institutions, research consortiums and other
4not-for-profit entities for the purposes of: remodeling or
5otherwise physically altering existing laboratory or research
6facilities, expansion or physical additions to existing
7laboratory or research facilities, construction of new
8laboratory or research facilities or acquisition of modern
9equipment to support laboratory or research operations
10provided that such grants (i) be used solely in support of
11project and equipment acquisitions which enhance technology
12transfer, and (ii) not constitute more than 60 percent of the
13total project or acquisition cost.
14    (q) Grants may be awarded by the Authority to units of
15local government for the purpose of developing the appropriate
16infrastructure or defraying other costs to the local
17government in support of laboratory or research facilities
18provided that such grants may not exceed 40% of the cost to the
19unit of local government.
20    (r) In addition to the powers granted to the Authority
21under subsection (i), and in all cases supplemental to it, the
22Authority may establish a direct loan program to make loans
23to, or may purchase participations in loans made by
24participating lenders to, individuals, partnerships,
25corporations, or other business entities for the purpose of
26financing an industrial project, as defined in Section 801-10

 

 

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1of this Act. For the purposes of such program and not by way of
2limitation on any other program of the Authority, including,
3without limitation, programs established under subsection (i),
4the Authority shall have the power to issue bonds, notes, or
5other evidences of indebtedness including commercial paper for
6purposes of providing a fund of capital from which it may make
7such loans. The Authority shall have the power to use any
8appropriations from the State made especially for the
9Authority's direct loan program, or moneys at any time held by
10the Authority under this Act outside the State treasury in the
11custody of either the Treasurer of the Authority or a trustee
12or depository appointed by the Authority, for additional
13capital to make such loans or purchase such loan
14participations, or for the purposes of reserve funds or
15pledged funds which secure the Authority's obligations of
16repayment of any bond, note or other form of indebtedness
17established for the purpose of providing capital for which it
18intends to make such loans or purchase such loan
19participations. For the purpose of obtaining such capital, the
20Authority may also enter into agreements with financial
21institutions, participating lenders, and other persons for the
22purpose of administering a loan participation program, selling
23loans or developing a secondary market for such loans or loan
24participations. Loans made under the direct loan program
25specifically established under this subsection (r), including
26loans under such program made by participating lenders in

 

 

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1which the Authority purchases a participation, may be in an
2amount not to exceed $600,000 and shall be made for a portion
3of an industrial project which does not exceed 50% of the total
4project. No loan may be made by the Authority unless approved
5by the affirmative vote of at least 8 members of the board. The
6Authority shall establish procedures and publish rules which
7shall provide for the submission, review, and analysis of each
8direct loan and loan participation application and which shall
9preserve the ability of each board member and the Executive
10Director, as applicable, to reach an individual business
11judgment regarding the propriety of each direct loan or loan
12participation. The collective discretion of the board to
13approve or disapprove each loan shall be unencumbered. The
14Authority may establish and collect such fees and charges,
15determine and enforce such terms and conditions, and charge
16such interest rates as it determines to be necessary and
17appropriate to the successful administration of the direct
18loan program, including purchasing loan participations. The
19Authority may require such interests in collateral and such
20guarantees as it determines are necessary to protect the
21Authority's interest in the repayment of the principal and
22interest of each loan and loan participation made under the
23direct loan program. The restrictions established under this
24subsection (r) shall not be applicable to any loan or loan
25participation made under subsection (i) or to any loan or loan
26participation made under any other Section of this Act.

 

 

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1    (s) The Authority may guarantee private loans to third
2parties up to a specified dollar amount in order to promote
3economic development in this State.
4    (t) The Authority may adopt rules and regulations as may
5be necessary or advisable to implement the powers conferred by
6this Act.
7    (u) The Authority shall have the power to issue bonds,
8notes or other evidences of indebtedness, which may be used to
9make loans to units of local government which are authorized
10to enter into loan agreements and other documents and to issue
11bonds, notes and other evidences of indebtedness for the
12purpose of financing the protection of storm sewer outfalls,
13the construction of adequate storm sewer outfalls, and the
14provision for flood protection of sanitary sewage treatment
15plans, in counties that have established a stormwater
16management planning committee in accordance with Section
175-1062 of the Counties Code. Any such loan shall be made by the
18Authority pursuant to the provisions of Section 820-5 to
19820-60 of this Act. The unit of local government shall pay back
20to the Authority the principal amount of the loan, plus annual
21interest as determined by the Authority. The Authority shall
22have the power, subject to appropriations by the General
23Assembly, to subsidize or buy down a portion of the interest on
24such loans, up to 4% per annum.
25    (v) The Authority may accept security interests as
26provided in Sections 11-3 and 11-3.3 of the Illinois Public

 

 

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1Aid Code.
2    (w) Moral Obligation. In the event that the Authority
3determines that monies of the Authority will not be sufficient
4for the payment of the principal of and interest on its bonds
5during the next State fiscal year, the Chairperson, as soon as
6practicable, shall certify to the Governor the amount required
7by the Authority to enable it to pay such principal of and
8interest on the bonds. The Governor shall submit the amount so
9certified to the General Assembly as soon as practicable, but
10no later than the end of the current State fiscal year. This
11subsection shall apply only to any bonds or notes as to which
12the Authority shall have determined, in the resolution
13authorizing the issuance of the bonds or notes, that this
14subsection shall apply. Whenever the Authority makes such a
15determination, that fact shall be plainly stated on the face
16of the bonds or notes and that fact shall also be reported to
17the Governor. In the event of a withdrawal of moneys from a
18reserve fund established with respect to any issue or issues
19of bonds of the Authority to pay principal or interest on those
20bonds, the Chairperson of the Authority, as soon as
21practicable, shall certify to the Governor the amount required
22to restore the reserve fund to the level required in the
23resolution or indenture securing those bonds. The Governor
24shall submit the amount so certified to the General Assembly
25as soon as practicable, but no later than the end of the
26current State fiscal year. The Authority shall obtain written

 

 

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1approval from the Governor for any bonds and notes to be issued
2under this Section. In addition to any other bonds authorized
3to be issued under Sections 825-60, 825-65(e), 830-25 and
4845-5, the principal amount of Authority bonds outstanding
5issued under this Section 801-40(w) or under 20 ILCS 3850/1-80
6or 30 ILCS 360/2-6(c), which have been assumed by the
7Authority, shall not exceed $150,000,000. This subsection (w)
8shall in no way be applied to any bonds issued by the Authority
9on behalf of the Illinois Power Agency under Section 825-90 of
10this Act.
11    (x) The Authority may enter into agreements or contracts
12with any person necessary or appropriate to place the payment
13obligations of the Authority under any of its bonds in whole or
14in part on any interest rate basis, cash flow basis, or other
15basis desired by the Authority, including without limitation
16agreements or contracts commonly known as "interest rate swap
17agreements", "forward payment conversion agreements", and
18"futures", or agreements or contracts to exchange cash flows
19or a series of payments, or agreements or contracts, including
20without limitation agreements or contracts commonly known as
21"options", "puts", or "calls", to hedge payment, rate spread,
22or similar exposure; provided that any such agreement or
23contract shall not constitute an obligation for borrowed money
24and shall not be taken into account under Section 845-5 of this
25Act or any other debt limit of the Authority or the State of
26Illinois.

 

 

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1    (y) The Authority shall publish summaries of projects and
2actions approved by the members of the Authority on its
3website. These summaries shall include, but not be limited to,
4information regarding the:
5        (1) project;
6        (2) Board's action or actions;
7        (3) purpose of the project;
8        (4) Authority's program and contribution;
9        (5) volume cap;
10        (6) jobs retained;
11        (7) projected new jobs;
12        (8) construction jobs created;
13        (9) estimated sources and uses of funds;
14        (10) financing summary;
15        (11) project summary;
16        (12) business summary;
17        (13) ownership or economic disclosure statement;
18        (14) professional and financial information;
19        (15) service area; and
20        (16) legislative district.
21    The disclosure of information pursuant to this subsection
22shall comply with the Freedom of Information Act.
23    (z) Consistent with the findings and declaration of policy
24set forth in item (j) of Section 801-5 of this Act, the
25Authority shall have the power to make loans to the Police
26Officers' Pension Investment Fund authorized by Section

 

 

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122B-120 of the Illinois Pension Code and to make loans to the
2Firefighters' Pension Investment Fund authorized by Section
322C-120 of the Illinois Pension Code. Notwithstanding anything
4in this Act to the contrary, loans authorized by Section
522B-120 and Section 22C-120 of the Illinois Pension Code may
6be made from any of the Authority's funds, including, but not
7limited to, funds in its Illinois Housing Partnership Program
8Fund, its Industrial Project Insurance Fund, or its Illinois
9Venture Investment Fund.
10(Source: P.A. 100-919, eff. 8-17-18; 101-610, eff. 1-1-20.)
 
11    (20 ILCS 3501/Art. 850 heading new)
12
ARTICLE 850
13
GENERAL PROVISIONS

 
14    (20 ILCS 3501/850-5 new)
15    Sec. 850-5. Climate Bank. The General Assembly designates
16the Authority as the Climate Bank to aid in all respects with
17providing financial assistance, programs, and products to
18finance and otherwise develop and facilitate opportunities to
19develop clean energy and provide clean water, drinking water,
20and wastewater treatment in the State. Nothing in this Section
21shall be deemed to supersede powers and regulatory duties
22conferred to other State agencies or governmental units.
 
23    (20 ILCS 3501/850-10 new)

 

 

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1    Sec. 850-10. Powers and duties.
2    (a) The Authority shall have the powers enumerated in this
3Act to assist in the development and implementation of clean
4energy in the State. The powers enumerated in this Article
5shall be in addition to all other powers of the Authority
6conferred in this Act, including those related to clean energy
7and the provision of clean water, drinking water, and
8wastewater treatment. The powers of the Authority to issue
9bonds, notes, and other obligations to finance loans
10administered by the Illinois Environmental Protection Agency
11under the Public Water Supply Loan Program or the Water
12Pollution Control Loan Program or other similar programs shall
13not be limited or otherwise affected by this amendatory Act of
14the 102nd General Assembly.
15    (b) In its role as the Climate Bank of the State, the
16Authority shall have the power to: (i) administer programs and
17funds appropriated by the General Assembly for clean energy
18projects in eligible communities and environmental justice
19communities or owned by eligible persons, (ii) support
20investment in the clean energy and clean water, drinking
21water, and wastewater treatment, (iii) support and otherwise
22promote investment in clean energy projects to foster the
23growth, development, and commercialization of clean energy
24projects and related enterprises, and (iv) stimulate demand
25for clean energy and the development of clean energy projects.
26    (c) In addition to, and not in limitation of, any other

 

 

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1power of the Authority set forth in this Section or any other
2provisions of the general statutes, the Authority shall have
3and may exercise the following powers in furtherance of or in
4carrying out its clean energy powers and purposes:
5        (1) To enter into joint ventures and invest in and
6    participate with any person, including, without
7    limitation, government entities and private corporations,
8    engaged primarily in the development of clean energy
9    projects, provided that members of the Authority or
10    officers may serve as directors, members, or officers of
11    any such business entity, and such service shall be deemed
12    to be in the discharge of the duties or within the scope of
13    the employment of any such member or officer, or Authority
14    or officers, as the case may be, so long as such member or
15    officer does not receive any compensation or direct or
16    indirect financial benefit as a result of serving in such
17    role.
18        (2) To utilize funding sources, including, but not
19    limited to:
20            (A) funds repurposed from existing programs
21        providing financing support for clean energy projects,
22        provided any transfer of funds from such existing
23        programs shall be subject to approval by the General
24        Assembly and shall be used for expenses of financing,
25        grants, and loans;
26            (B) any federal funds that can be used for clean

 

 

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1        energy purposes;
2            (C) charitable gifts, grants, and contributions as
3        well as loans from individuals, corporations,
4        university endowment funds, and philanthropic
5        foundations for clean energy projects or for the
6        provision of clean water, drinking water, and
7        wastewater treatment; and
8            (D) earnings and interest derived from financing
9        support activities for clean energy projects financed
10        by the Authority.
11        (3) To enter into contracts with private sources to
12    raise capital.
13    (d) The Authority may finance working capital, refinance
14outstanding indebtedness of any person, and otherwise assist
15in the investment of equity from any source, public or
16private, in connection with clean energy projects or any other
17projects authorized by this Act.
18    (e) The Authority may assess reasonable fees on its
19financing activities to cover its reasonable costs and
20expenses, as determined by the Authority.
21    (f) The Authority shall make information regarding the
22rates, terms and conditions for all of its financing support
23transactions available to the public for inspection, including
24formal annual reviews by both a private auditor and the
25Comptroller, and providing details to the public on the
26Internet, provided public disclosure shall be restricted for

 

 

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1patentable ideas, trade secrets, and proprietary or
2confidential commercial or financial information, disclosure
3of which may cause commercial harm to a nongovernmental
4recipient of such financing support and for other information
5exempt from public records disclosure pursuant to Section
61-210.
 
7    (20 ILCS 3501/850-15 new)
8    Sec. 850-15. Purposes; Climate Bank. In its role as the
9Climate Bank for the State, the Authority shall consider the
10following purposes:
11        (1) the distribution of the benefits of clean energy
12    in an equitable manner, including by evaluating benefits
13    to eligible communities and equity investment eligible
14    persons;
15        (2) making clean energy accessible to all, especially
16    eligible persons, through financing opportunities and
17    grants for minority-owned businesses, as defined in the
18    Business Enterprise for Minorities, Women, and Persons
19    with Disabilities Act, and for low-income communities,
20    eligible communities, environmental justice communities,
21    and the businesses that serve these communities; and
22        (3) accelerating the investment of private capital
23    into clean energy projects in a manner reflective of the
24    geographic, racial, ethnic, gender, and income-level
25    diversity of the State.
 

 

 

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1
Article 10. Energy Community Reinvestment Act

 
2    Section 10-1. Short title. This Article may be cited as
3the Energy Community Reinvestment Act. References in this
4Article to "this Act" mean this Article.
 
5    Section 10-5. Findings. The General Assembly finds that,
6as part of putting Illinois on a path to 100% renewable energy,
7the State of Illinois should ensure a just transition to that
8goal, providing support for the transition of Illinois'
9communities and workers impacted by closures or reduced use of
10fossil fuel power plants, nuclear power plants, or coal mines
11by allocating new economic development resources for business
12tax incentives, workforce training, site clean-up and reuse,
13and local tax revenue replacement.
14    The General Assembly finds and declares that the health,
15safety, and welfare of the people of this State are dependent
16upon a healthy economy and vibrant communities; that the
17closure of fossil fuel power plants, nuclear power plants, and
18coal mines across this State have a significant impact on
19their surrounding communities; that the expansion of renewable
20energy creates job growth and contributes to the health,
21safety, and welfare of the people of this State; that the
22continual encouragement, development, growth, and expansion of
23renewable energy within this State requires a cooperative and

 

 

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1continuous partnership between government and the renewable
2energy sector; and that there are certain areas in this State
3that have lost, or will lose, jobs due to the closure of fossil
4fuel power plants, nuclear power plants, and coal mines and
5need the particular attention of government, labor, and the
6residents of Illinois to help attract new investment into
7these areas and directly aid the local community and its
8residents.
9    Therefore, it is declared to be the purpose of this Act to
10explore ways of stimulating the growth of new private
11investment, including renewable energy investment, in this
12State and to foster job growth in areas impacted by the closure
13of coal energy plants, coal mines, and nuclear energy plants.
 
14    Section 10-10. Definitions. As used in this Act, unless
15the context otherwise requires:
16    "Agencies" or "State agencies" has the same meaning as
17"State agencies" under Section 1-7 of the Illinois State
18Auditing Act.
19    "Commission" means the Energy Transition Workforce
20Commission created in Section 10-15.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Displaced energy worker" means an energy worker who has
24lost employment, or is anticipated by the Department to lose
25employment within the next 5 years, due to the reduced

 

 

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1operation or closure of a fossil fuel power plant, nuclear
2power plant, or coal mine.
3    "Energy worker" means a person who has been employed
4full-time for a period of one year or longer, and within the
5previous 5 years, at a fossil fuel power plant, a nuclear power
6plant, or a coal mine located within the State of Illinois,
7whether or not they are employed by the owner of the power
8plant or mine. Energy workers are considered to be full-time
9if they work at least 35 hours per week for 45 weeks a year or
10the 1,820 work-hour equivalent with vacations, paid holidays,
11and sick time, but not overtime, included in this computation.
12Classification of an individual as an energy worker continues
13for 5 years from the latest date of employment or the effective
14date of this Act, whichever is later.
15    "Environmental justice communities" shall have the meaning
16set forth in Section 1-56 of the Illinois Power Agency Act and
17the most recent Commission-approved long-term renewable
18resources procurement plan of the Illinois Power Agency.
19    "Investor-owned electric generating plant" means an
20electric generating unit or fossil fuel-fired unit that has a
21nameplate capacity or serves a generator that has a nameplate
22capacity greater than 25Mwe and that produces electricity,
23including, but not limited to, coal-fired, coal-derived,
24oil-fired, natural gas-fired, and cogeneration units.
25    "Local labor market area" means an economically integrated
26area within which individuals reside and find employment

 

 

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1within a reasonable distance of their places of residence or
2can readily change jobs without changing their places of
3residence.
4    "Low-income" means persons and families whose income does
5not exceed 80% of area median income, adjusted for family size
6and revised every 2 years.
7    "Renewable energy enterprise" means a company that is
8engaged in the production, manufacturing, distribution, or
9development of renewable energy resources and associated
10technologies.
11    "Renewable energy project" means a project conducted by a
12renewable energy enterprise for the purpose of generating
13renewable energy resources or energy storage.
14    "Renewable energy resources" has the meaning set forth in
15Section 1-10 of the Illinois Power Agency Act.
16    "Rule" has the meaning set forth in Section 1-70 of the
17Illinois Administrative Procedure Act.
 
18    Section 10-15. Energy Transition Workforce Commission.
19    (a) The Energy Transition Workforce Commission is hereby
20created within the Department of Commerce and Economic
21Opportunity.
22    (b) The Commission shall consist of the following members:
23        (1) the Director of Commerce and Economic Opportunity;
24        (2) the Director of Labor, or his or her designee, who
25    shall serve as chairperson;

 

 

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1        (3) 5 members appointed by the Governor, with the
2    advice and consent of the Senate, of which at least one
3    shall be a representative of a local labor organization,
4    at least one shall be a resident of an environmental
5    justice community, at least one shall be a representative
6    of a national labor organization, and at least one shall
7    be a representative of the administrator of workforce
8    training programs created by this Act. Designees shall be
9    appointed within 60 days after a vacancy; and
10        (4) the 3 Regional Administrators selected under
11    Section 5-15 of the Energy Transition Act.
12    (c) Members of the Commission shall serve without
13compensation, but may be reimbursed for necessary expenses
14incurred in the performance of their duties from funds
15appropriated for that purpose. The Department of Commerce and
16Economic Opportunity shall provide administrative support to
17the Commission.
18    (d) Within 240 days after the effective date of this Act,
19and in consultation with the Department of Revenue and the
20Environmental Protection Agency, the Commission shall produce
21an Energy Transition Workforce Report regarding the
22anticipated impact of the energy transition and a
23comprehensive set of recommendations to address changes to the
24Illinois workforce during the period of 2020 through 2050, or
25a later year. The report shall contain the following elements,
26designed to be used for the programs created in this Act:

 

 

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1        (1) Information related to the impact on current
2    workers, including:
3            (A) a comprehensive accounting of all employees
4        who currently work in fossil fuel energy generation,
5        nuclear energy generation, and coal mining in the
6        State; upon receipt of the employee's written
7        authorization for the employer's release of such
8        information to the Commission, this shall include
9        information on their location, employer, salary
10        ranges, full-time or part-time status, nature of their
11        work, educational attainment, union status, and other
12        factors the Commission finds relevant;
13            (B) the anticipated schedule of closures of fossil
14        fuel power plants, nuclear power plants, and coal
15        mines across the State; when information is
16        unavailable to provide exact data, the report shall
17        include approximations based upon the best available
18        information; and
19            (C) an estimate of worker impacts due to scheduled
20        closures, including layoffs, early retirements, salary
21        changes, and other factors the Commission finds
22        relevant.
23        (2) Information regarding impact on communities and
24    local governments, including:
25            (A) changes in the revenue for units of local
26        government in areas that currently or recently have

 

 

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1        had a closure or reduction in operation of a fossil
2        fuel power plant, nuclear power plant, coal mine, or
3        related industry;
4            (B) environmental impacts in areas that currently
5        or recently have had fossil fuel power plants, coal
6        mines, nuclear power plants, or related industry; and
7            (C) economic impacts of the energy transition,
8        including, but not limited to, the supply chain
9        impacts of the energy transition shift toward new
10        energy sources across the State.
11        (3) Information on emerging industries and State
12    economic development opportunities in regions that have
13    historically been the site of fossil fuel power plants,
14    nuclear power plants, or coal mining.
15    (e) The Department shall periodically review its findings
16in the developed reports and make modifications to the report
17and programs based on new findings. The Department shall
18conduct a comprehensive reevaluation of the report, and
19publish a modified version, on each of the following years
20following initial publication: 2023; 2027; 2030; 2035; 2040;
21and any year thereafter which the Department determines is
22necessary or prudent.
 
23    Section 10-20. Energy Transition Community Grants.
24    (a) Subject to appropriation, the Department shall
25establish an Energy Transition Community Grant Program to

 

 

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1award grants to promote economic development in eligible
2communities.
3    (b) Funds shall be made available from the Energy
4Transition Assistance Fund to the Department to provide these
5grants.
6    (c) Communities eligible to receive these grants must meet
7one or more of the following:
8        (1) the area contains a fossil fuel or nuclear power
9    plant that was retired from service or has significantly
10    reduced service within 6 years before the application for
11    designation or will be retired or have service
12    significantly reduced within 6 years following the
13    application for designation;
14        (2) the area contains a coal mine that was closed or
15    had operations significantly reduced within 6 years before
16    the application for designation or is anticipated to be
17    closed or have operations significantly reduced within 6
18    years following the application for designation; or
19        (3) the area contains a nuclear power plant that was
20    decommissioned, but continued storing nuclear waste before
21    the effective date of this Act.
22    (d) Local units of governments in eligible areas may join
23with any other local unit of government, economic development
24organization, local educational institutions, community-based
25groups, or with any number or combination thereof to apply for
26the Energy Transition Community Grant.

 

 

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1    (e) To receive grant funds, an eligible community must
2submit an application to the Department, using a form
3developed by the Department.
4    (f) For grants awarded to counties or other entities that
5are not the city that hosts or has hosted the investor-owned
6electric generating plant, a resolution of support for the
7project from the city or cities that hosts or has hosted the
8investor-owned electric generating plant is required to be
9submitted with the application.
10    (g) Grants must be used to plan for or address the economic
11and social impact on the community or region of plant
12retirement or transition.
13    (h) Project applications shall include community input and
14consultation with a diverse set of stakeholders, including,
15but not limited to: Regional Planning Councils, where
16applicable; economic development organizations; low-income or
17environmental justice communities; educational institutions;
18elected and appointed officials; organizations representing
19workers; and other relevant organizations.
20    (i) Grant costs are authorized to procure third-party
21vendors for grant writing and implementation costs, including
22for guidance and opportunities to apply for additional
23federal, State, local, and private funding resources. If the
24application is approved for pre-award, one-time reimbursable
25costs to apply for the Energy Transition Community Grant are
26authorized up to 3% of the award.

 

 

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1    (j) Units of local government that are taxing authorities
2for a nuclear plant that was decommissioned before January 1,
32021 shall receive grants in proportional shares of $15 per
4kilogram of spent nuclear fuel stored at such a facility, less
5any payments made to such communities from the federal
6government based on the amount of waste stored at a
7decommissioned nuclear plant and any property tax payments.
 
8    Section 10-25. Displaced Energy Workers Bill of Rights.
9    (a) The Department, in collaboration with the Department
10of Employment Security, shall have the authority to implement
11the Displaced Energy Workers Bill of Rights, and shall be
12responsible for the implementation of the Displaced Energy
13Workers Bill of Rights programs and rights created under this
14Section. For purposes of this Section, "closure" means the
15permanent shutdown of an electric generating unit or coal
16mine. The Department shall provide the following benefits to
17displaced energy workers listed in paragraphs (1) through (4)
18of this subsection:
19        (1) Advance notice of power plant or coal mine
20    closure.
21            (A) The Department shall notify all energy workers
22        of the upcoming closure of any qualifying facility as
23        far in advance of the scheduled closing date as it can.
24        The Department shall engage the employer and energy
25        workers no later than within 30 days of a closure or

 

 

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1        deactivation notice being filed by the plant owner to
2        the Regional Transmission Organization of
3        jurisdiction, within 30 days of the announced closure
4        of a coal mine, within 30 days of a WARN notice being
5        filed with the Department, or within 30 days of an
6        announcement or requirement of cessation of operations
7        of a plant or mine from another authoritative source,
8        whichever is first.
9            (B) In providing the advance notice described in
10        this paragraph (1), the Department shall take
11        reasonable steps to ensure that all displaced energy
12        workers are educated on the various programs available
13        through the Department to assist with the energy
14        transition.
15        (2) Education on programs. The Department shall take
16    reasonable steps to ensure that all displaced energy
17    workers are educated on the various programs available
18    through the Department to assist with the energy
19    transition, including, but not limited to, the Illinois
20    Dislocated Worker and Rapid Response programs. The
21    Department will develop an outreach strategy, workforce
22    toolkit and quick action plan to deploy when closures are
23    announced. This strategy will include identifying any
24    additional resources that may be needed to aid worker
25    transitions that would require contracting services.
26        (3) The Department shall provide information and

 

 

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1    consultation to displaced energy workers on various
2    employment and educational opportunities available to
3    them, supportive services, and advise workers on which
4    opportunities meet their skills, needs, and preferences.
5            (A) Available services will include reemployment
6        services, training services, work-based learning
7        services, and financial and retirement planning
8        support.
9            (B) The Department will provide skills matching as
10        part of career counseling services to enable
11        assessment of the displaced energy worker's skills and
12        map those skills to emerging occupations in the region
13        or nationally, or both, depending on the displaced
14        worker's preferences.
15            (C) For energy workers who may be interested in
16        entrepreneurial pursuits, the Department will connect
17        these individuals with their area Small Business
18        Development Center, procurement technical assistance
19        centers, and economic development organization to
20        engage in services, including, but not limited to,
21        business consulting, business planning, regulatory
22        compliance, marketing, training, accessing capital,
23        and government bid certification assistance.
24        (4) Financial planning services. Displaced energy
25    workers shall be entitled to services as described in the
26    energy worker programs in this subsection, including

 

 

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1    financial planning services.
2    (b) Plant owners and the owners of coal mines located in
3Illinois shall be required to comply with the requirements set
4out in this subsection (b). The owners shall be required to
5take the following actions:
6        (1) Provide written notice of deactivation or closure
7    filing with the Regional Transmission Organization of
8    jurisdiction to the Department within 48 hours, if
9    applicable.
10        (2) Provide employment information for energy workers;
11    90 days prior to the closure of an electric generating
12    unit or mine, the owners of the power plant or mine shall
13    provide energy workers information on whether there are
14    employment opportunities provided by their employer.
15        (3) Annually report to the Department on announced
16    closures of qualifying facilities. The report must include
17    information on expected closure date, number of employees,
18    planning processes, services offered for employees (such
19    as training opportunities) leading up to the closure,
20    efforts made to retain employees through other employment
21    opportunities within the company, and any other
22    information that the Department requires in order to
23    implement this Section.
24        (4) Ninety days prior to closure date, provide a final
25    closure report to the Department that includes expected
26    closure date, number of employees and salaries, transition

 

 

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1    support the company is providing to employee and
2    timelines, including assistance for training
3    opportunities, transportation support or child care
4    resources to attend training, career counseling, resume
5    support, and others. The closure report will be made
6    available to the chief elected official of each municipal
7    and county government within which the employment loss,
8    relocation, or mass layoff occurs. It shall not be made
9    publicly available.
10        (5) Ninety days prior to closure date, provide job
11    descriptions for each employee at the plant or mine to the
12    Department and the entity providing career and training
13    counseling.
14        (6) Ninety days prior to closure date, make available
15    to the Department and the entity providing career and
16    training counseling any industry-related certifications
17    and on-the-job training the employee earned to allow union
18    training programs, community colleges, or other
19    certification programs to award credit for life
20    experiences in order to reduce the amount of time to
21    complete training, certificates, or degrees for the
22    dislocated employee.
 
23    Section 10-30. Displaced Energy Worker Dependent
24Transition Scholarship.
25    (a) Subject to appropriation, the benefits of this Section

 

 

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1shall be administered by and paid for out of funds made
2available to the Illinois Student Assistance Commission.
3    (b) Any natural child, legally adopted child, or stepchild
4of an eligible displaced energy worker who possesses all
5necessary entrance requirements shall, upon application and
6proper proof, be awarded a transition scholarship consisting
7of the equivalent of one calendar year of full-time
8enrollment, including summer terms, to the State-supported
9Illinois institution of higher learning of his or her choice.
10    (c) As used in this Section, "eligible displaced energy
11worker" means an energy worker who has lost employment due to
12the reduced operation or closure of a fossil fuel power plant
13or coal mine.
14    (d) Full-time enrollment means 12 or more semester hours
15of courses per semester, or 12 or more quarter hours of courses
16per quarter, or the equivalent thereof per term. Scholarships
17utilized by dependents enrolled in less than full-time study
18shall be computed in the proportion which the number of hours
19so carried bears to full-time enrollment.
20    (e) Scholarships awarded under this Section may be used by
21a child without regard to his or her age. The holder of a
22Scholarship awarded under this Section shall be subject to all
23examinations and academic standards, including the maintenance
24of minimum grade levels, that are applicable generally to
25other enrolled students at the Illinois institution of higher
26learning where the scholarship is being used.

 

 

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1    (f) An applicant is eligible for a scholarship under this
2Section when the Commission finds the applicant:
3        (1) is the natural child, legally adopted child, or
4    stepchild of an eligible displaced energy worker; and
5        (2) in the absence of transition scholarship
6    assistance, will be deterred by financial considerations
7    from completing an educational program at the
8    State-supported Illinois institution of higher learning of
9    his or her choice.
10    (g) Funds may be made available from the Energy Transition
11Assistance Fund to the Commission to provide these grants.
12    (h) The scholarship shall only cover tuition and fees at
13the rates offered to students residing within the State or in
14the district, but shall not exceed the cost equivalent of one
15calendar year of full-time enrollment, including summer terms,
16at the University of Illinois. The Commission shall determine
17the grant amount for each student.
 
18    Section 10-40. Energy Community Reinvestment Report.
19Beginning 365 days after the effective date of this Act, and at
20least once each calendar year thereafter, the Department shall
21create or commission the creation of a report on the energy
22worker and transition programs created in this Act and publish
23the report on its website. The report shall, at a minimum,
24contain information on program metrics, the demographics of
25participants, program impact, and recommendations for future

 

 

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1modifications to the services provided by the Department under
2these programs.
 
3    Section 10-70. Administrative review. All final
4administrative decisions, including, but not limited to,
5funding allocation and rules issued by the Department under
6this Act are subject to judicial review under the
7Administrative Review Law. No action may be commenced under
8this Section prior to 60 days after the complainant has given
9notice in writing of the action to the Department.
 
10    Section 10-90. Repealer. This Act is repealed 24 years
11after the effective date of this Act.
 
12
Article 15. Community Energy, Climate, and Jobs Planning Act

 
13    Section 15-1. Short title. This Article may be cited as
14the Community Energy, Climate, and Jobs Planning Act.
15References in this Article to "this Act" mean this Article.
 
16    Section 15-5. Findings. The General Assembly makes the
17following findings:
18        (1) The health, welfare, and prosperity of Illinois
19    residents require that Illinois take all steps possible to
20    combat climate change, address harmful environmental
21    impacts deriving from the generation of electricity,

 

 

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1    maximize quality job creation in the emerging clean energy
2    economy, ensure affordable utility service, equitable and
3    affordable access to transportation, and clean, safe, and
4    affordable housing.
5        (2) The achievement of these goals will depend on
6    strong community engagement to ensure that programs and
7    policy solutions meet the needs of disparate communities.
8        (3) Ensuring that these goals are met without adverse
9    impacts on utility bill affordability, housing
10    affordability, and other essential services will depend on
11    the coordination of policies and programs within local
12    communities.
 
13    Section 15-10. Definitions. As used in this Act:
14    "Alternative energy improvement" means the installation or
15upgrade of electrical wiring, outlets, or charging stations to
16charge a motor vehicle that is fully or partially powered by
17electricity; photovoltaic, energy storage, or thermal
18resource; or any combination thereof.
19    "Disadvantaged worker" means an individual who is defined
20as: (1) being homeless; (2) being a custodial single parent;
21(3) being a recipient of public assistance; (4) lacking a high
22school diploma or high school equivalency; (5) having a
23criminal record or other involvement in the criminal justice
24system; (6) suffering from chronic unemployment; (7) being
25previously in the child welfare system; or (8) being a

 

 

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1veteran.
2    "Energy efficiency improvement" means equipment, devices,
3or materials intended to decrease energy consumption or
4promote a more efficient use of electricity, natural gas,
5propane, or other forms of energy on property, including, but
6not limited to:
7        (1) insulation in walls, roofs, floors, foundations,
8    or heating and cooling distribution systems;
9        (2) storm windows and doors, multi-glazed windows and
10    doors, heat-absorbing or heat-reflective glazed and coated
11    window and door systems, and additional glazing,
12    reductions in glass area, and other window and door system
13    modifications that reduce energy consumption;
14        (3) automated energy control systems;
15        (4) high efficiency heating, ventilating, or
16    air-conditioning and distribution system modifications or
17    replacements;
18        (5) caulking, weather-stripping, and air sealing;
19        (6) replacement or modification of lighting fixtures
20    to reduce the energy use of the lighting system;
21        (7) energy controls or recovery systems;
22        (8) day lighting systems;
23        (9) any energy efficiency project, as defined in
24    Section 825-65 of the Illinois Finance Authority Act; and
25        (10) any other installation or modification of
26    equipment, devices, or materials approved as a utility

 

 

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1    cost-saving measure by the governing body.
2    "Energy project" means the installation or modification of
3an alternative energy improvement, energy efficiency
4improvement, or water use improvement, or the acquisition,
5installation, or improvement of a renewable energy system that
6is affixed to a stabilized existing property, including new
7construction.
8    "Environmental justice communities" means the proposed
9definition of that term based on existing methodologies and
10findings used by the Illinois Power Agency and its
11Administrator in its Illinois Solar for All Program.
12    "Equity investment eligible community" or "eligible
13community" are synonymous and mean the geographic areas
14throughout Illinois which would most benefit from equitable
15investments by the State designed to combat discrimination and
16foster sustainable economic growth. Specifically, eligible
17communities shall be defined as the following areas:
18        (1) R3 Areas as established pursuant to Section 10-40
19    of the Cannabis Regulation and Tax Act, where residents
20    have historically been excluded from economic
21    opportunities, including opportunities in the energy
22    sector; and
23        (2) Environmental justice communities, as defined by
24    the Illinois Power Agency pursuant to the Illinois Power
25    Agency Act, where residents have historically been subject
26    to disproportionate burdens of pollution, including

 

 

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1    pollution from the energy sector.
2    "Equity investment eligible person" or "eligible person"
3are synonymous and mean the persons who would most benefit
4from equitable investments by the State designed to combat
5discrimination and foster sustainable economic growth.
6Specifically, "eligible person" means the following people:
7        (1) a person whose primary residence is in an equity
8    investment eligible community;
9        (2) a person who is a graduate of or currently
10    enrolled in the foster care system; or
11        (3) a person who was formerly incarcerated.
12    "Governing body" means the county board or board of county
13commissioners of a county, the city council of a municipality,
14or the board of trustees of a village.
15    "Local Employment Plan" means a bidding option that public
16agencies may include in requests for proposals to incentivize
17bidders to voluntarily plan to retain and create high-skilled
18local manufacturing jobs; invest in preapprenticeship,
19apprenticeship, and training opportunities; and develop
20family-sustaining career pathways into clean energy industries
21for disadvantaged workers in a specified local area. The Local
22Employment Plan only applies to work that is not financed with
23federal money.
24    "Local unit of government" means a county, municipality,
25or village.
26    "Natural climate solutions" means conservation,

 

 

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1restoration, or improved land management actions that increase
2carbon storage or avoid greenhouse gas emissions on natural
3and working lands.
4    "Nature-based approaches for climate adaptation" means
5actions that preserve, enhance, or expand functions provided
6by nature that increase capacity to manage adverse conditions
7created or exacerbated by climate change. "Nature-based
8approaches for climate adaptation" includes, but is not
9limited to, the restoration of native ecosystems, especially
10floodplains; installation of bioswales, rain gardens, and
11other green stormwater infrastructure; and practices that
12increase soil health and reduce urban heat island effects.
13    "Public agency" means the State of Illinois or any of its
14government bodies and subdivisions, including the various
15counties, townships, municipalities, school districts,
16educational service regions, special road districts, public
17water supply districts, drainage districts, levee districts,
18sewer districts, housing authorities, and transit agencies.
19    "Renewable energy resource" includes energy and its
20associated renewable energy credit or renewable energy credits
21from wind energy, solar thermal energy, geothermal energy,
22photovoltaic cells and panels, biodiesel, anaerobic digestion,
23and hydropower that does not involve new construction or
24significant expansion of hydropower dams. For purposes of this
25Act, landfill gas produced in the State is considered a
26renewable energy resource. "Renewable energy resource" does

 

 

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1not include the incineration or burning of any solid material.
2    "Renewable energy system" means a fixture, product,
3device, or interacting group of fixtures, products, or devices
4on the customer's side of the meter that use one or more
5renewable energy resources to generate electricity, and
6specifically includes any renewable energy project, as defined
7in Section 825-65 of the Illinois Finance Authority Act.
8    "U.S. Employment Plan" means a bidding option that public
9agencies may include in requests for proposals to incentivize
10bidders to voluntarily plan to retain and create high-skilled
11U.S. manufacturing jobs; invest in preapprenticeship,
12apprenticeship, and training opportunities; and develop
13family-sustaining career pathways into clean energy industries
14for disadvantaged workers throughout the U.S. The U.S.
15Employment Plan only applies to work financed with federal
16Money.
17    "Water use improvement" means any fixture, product,
18system, device, or interacting group thereof for or serving
19any property that has the effect of conserving water resources
20through improved water management, efficiency, or thermal
21resource.
 
22    Section 15-15. Community Energy, Climate, and Jobs Plans;
23creation.
24    (a) Pursuant to the procedures in Section 15-20, a local
25unit of government may establish Community Energy, Climate,

 

 

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1and Jobs Plans and identify boundaries and areas covered by
2the Plans.
3    (b) Community Energy, Climate, and Jobs Plans are intended
4to aid local governments in developing a comprehensive
5approach to combining different energy, climate, and jobs
6programs and funding resources to achieve complementary
7impact. An effective planning process may:
8        (1) help communities discover ways that their local
9    government, businesses, and residents can control their
10    energy use and lower their bills;
11        (2) ensure a cost-effective transition away from
12    fossil fuels in the transportation sector;
13        (3) expand access to workforce development and job
14    training opportunities for disadvantaged workers in the
15    emerging clean energy economy;
16        (4) incentivize the creation and retention of quality
17    Illinois jobs (when federal funds are not involved) in the
18    emerging clean energy economy;
19        (5) incentivize the creation and retention of quality
20    U.S. jobs in the emerging clean energy economy;
21        (6) promote economic development through improvements
22    in community infrastructure, transit, and support for
23    local business;
24        (7) improve the health of Illinois communities,
25    especially eligible communities, by reducing emissions,
26    addressing existing brownfield areas, and promoting the

 

 

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1    integration of distributed energy resources;
2        (8) enable greater customer engagement, empowerment,
3    and options for energy services, and ultimately reduce
4    utility bills for Illinoisans;
5        (9) bring the benefits of grid modernization and the
6    deployment of distributed energy resources to economically
7    disadvantaged communities and eligible communities
8    throughout Illinois;
9        (10) support existing Illinois policy goals promoting
10    energy efficiency, demand response, and investments in
11    renewable energy resources;
12        (11) enable communities to better respond to extreme
13    heat and cold emergencies;
14        (12) explore opportunities to expand and improve
15    recreational amenities, wildlife habitat, flood
16    mitigation, agricultural production, tourism, and similar
17    co-benefits by deploying natural climate solutions and
18    nature-based approaches for climate adaptation; and
19        (13) ensure eligible persons, minorities, women,
20    people with disabilities, and veterans meaningfully
21    participate in the transition to a clean energy economy.
22    (c) A Community Energy, Climate, and Jobs Plan may include
23discussion of:
24        (1) the demographics of the community, including
25    information on the mix of residential and commercial areas
26    and populations, ages, languages, education, and workforce

 

 

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1    training, including an examination of the average utility
2    bills paid within the community by class and zip code, the
3    percentage and locations of individuals requiring energy
4    assistance, and participation of community members in
5    other assistance programs;
6        (2) an examination of the community's energy use, for
7    electricity, natural gas, transportation, and other fuels;
8        (3) the geography of the community, including the
9    amount of green space, brownfield sites, farmland,
10    waterways, flood zones, heat islands, areas for potential
11    development, location of critical infrastructure such as
12    emergency response facilities, health care and education
13    facilities, and public transportation routes;
14        (4) information on economic development opportunities,
15    commercial usage, and employment opportunities;
16        (5) the current status of zero emission vehicles
17    operated by or on behalf of public agencies within the
18    community; and
19        (6) other topics deemed applicable by the community.
20    (d) A Community Energy, Climate, and Jobs Plan may address
21the following areas:
22        (1) distributed energy resources, including energy
23    efficiency, demand response, dynamic pricing, energy
24    storage, and solar (thermal, rooftop, and community);
25        (2) building codes, both commercial and residential;
26        (3) alternative transportation funding;

 

 

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1        (4) transit options, including individual car
2    ownership, ridesharing, buses, trains, bicycles, and
3    pedestrian walkways;
4        (5) community assets related to extreme heat and cold
5    emergencies, such as cooling and warming centers;
6        (6) public agency procurements of zero emission,
7    electric vehicles; and
8        (7) networks of natural resources and infrastructure.
9    (e) A Community Energy, Climate, and Jobs Plan may
10conclude with proposals to:
11        (1) increase the use of electricity as a
12    transportation fuel at multi-unit dwellings;
13        (2) maximize the system-wide benefits of
14    transportation electrification;
15        (3) direct public agencies to implement tools, such as
16    the U.S. Employment Plan or a Local Employment Plan, to
17    incentivize manufacturers in clean energy industries to
18    create and retain quality jobs and invest in training,
19    workforce development, and apprenticeship programs in
20    connection to a major contract;
21        (4) test innovative load management programs or rate
22    structures associated with the use of electric vehicles by
23    residential customers to achieve customer fuel cost
24    savings relative to gasoline or diesel fuels and to
25    optimize grid efficiency;
26        (5) increase the integration of distributed energy

 

 

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1    resources in the community;
2        (6) significantly expand the percentage of net-zero
3    housing and net-zero buildings in the community;
4        (7) improve utility bill affordability;
5        (8) increase mass transit ridership;
6        (9) decrease vehicle miles traveled;
7        (10) reduce local emissions of greenhouse gases, NOx,
8    SOx, particulate matter, and other air pollutants;
9        (11) improve community assets that help residents
10    respond to extreme heat and cold emergencies; and
11        (12) expand opportunities for eligible persons,
12    minorities, women, people with disabilities, and veterans
13    to meaningfully participate in the transition to a clean
14    energy economy.
15    (f) A Community Energy, Climate, and Jobs Plan may be
16administered by one or more program administrators or the
17local unit of government.
 
18    Section 15-20. Community Energy, Climate, and Jobs
19Planning process.
20    (a) An effective planning process shall engage a diverse
21set of stakeholders in local communities, including:
22environmental justice organizations; economic development
23organizations; faith-based nonprofit organizations;
24educational institutions; interested residents; health care
25institutions; tenant organizations; housing institutions,

 

 

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1developers, and owners; elected and appointed officials; and
2representatives reflective of each local community.
3    (b) An effective planning process shall engage individual
4members of the community to the extent possible to ensure that
5the Plans receive input from as diverse a set of perspectives
6as possible.
7    (c) Plan materials and meetings related to the Plan shall
8be translated into languages that reflect the makeup of the
9local community.
10    (d) The planning process shall be conducted in an ethical,
11transparent fashion, and continually review its policies and
12practices to determine how best to meet its objectives.
13    (e) The Community, Energy, and Climate Plans shall take
14into account other applicable or relevant economic development
15plans, such as a Comprehensive Economic Development Strategy,
16developed by a local unit of government, economic development
17organization, or Regional Planning Council.
 
18    Section 15-25. Joint Community Energy, Climate, and Jobs
19Plans. A local unit of government may join with any other local
20unit of government, or with any public or private person, or
21with any number or combination thereof, under the
22Intergovernmental Cooperation Act, by contract or otherwise as
23may be permitted by law, for the implementation of a Community
24Energy, Climate, and Jobs Plan, in whole or in part.
 

 

 

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1    Section 15-90. Repealer. This Act is repealed 24 years
2after the effective date of this Act.
 
3
Article 20. Illinois Clean Energy
4
Jobs and Justice Fund Act

 
5    Section 20-1. Short title. This Article may be cited as
6the Clean Energy Jobs and Justice Fund Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 20-5. Purpose. The purpose of this Act is to
9promote the health, welfare, and prosperity of all the
10residents of this State by ensuring access to financial
11products that allow Illinois residents and businesses to
12invest in clean energy. Furthermore, the Clean Energy Jobs and
13Justice Fund, is designed to fill the following purposes:
14        (1) ensure that the benefits of the clean energy
15    economy are equitably distributed;
16        (2) make clean energy accessible to all through the
17    provision of innovative financing opportunities and grants
18    for Minority Business Enterprises (MBE) and other
19    contractors of color, and for low-income, environmental
20    justice, and BIPOC communities and the businesses that
21    serve these communities;
22        (3) prioritize the provision of public and private
23    capital for clean energy investment to MBEs and other

 

 

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1    contractors of color, and to businesses serving
2    low-income, environmental justice, and BIPOC communities;
3        (4) accelerate the flow of private capital into clean
4    energy markets;
5        (5) assist low-income, environmental justice, and
6    BIPOC community utility customers in paying for solar and
7    energy efficiency upgrades through energy cost savings;
8        (6) increase access to no-cost and low-cost loans for
9    MBE and other contractors of color;
10        (7) develop financing products designed to compensate
11    for historical and structural barriers preventing
12    low-income, environmental justice, and BIPOC communities
13    from accessing traditional financing;
14        (8) leverage private investment in clean energy
15    projects and in projects developed by MBEs and other
16    contractors of color; and
17        (9) pursue financial self-sustainability through
18    innovative financing products.
 
19    Section 20-10. Definitions. As used in this Act:
20    "Black, indigenous, and people of color" or "BIPOC" means
21people who are members of the groups described in
22subparagraphs (a) through (e) of paragraph (A) of subsection
23(1) of Section 2 of the Business Enterprise for Minorities,
24Women, and Persons with Disabilities Act.
25    "Board" means the Board of Directors of the Clean Energy

 

 

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

 

 

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1corporation, either domestic or foreign, company, association,
2limited liability company, joint stock company, or association
3and includes any trustee, receiver, assignee, or personal
4representative thereof.
 
5    Section 20-15. Clean Energy Jobs and Justice Fund.
6    (a) Not later than 30 days after the effective date of this
7Act, there shall be incorporated a nonprofit corporation to be
8known as the "Clean Energy Jobs and Justice Fund".
9    (b) The Fund shall not be an agency or instrumentality of
10the State Government.
11    (c) The full faith and credit of the State of Illinois
12shall not extend to the Fund.
13    (d) The Fund shall:
14        (1) Be an organization described in subsection (c) of
15    Section 501 of the Internal Revenue Code of 1986 and
16    exempt from taxation under subsection (a) of Section 501
17    of that Code;
18        (2) Ensure that no part of the income or assets of the
19    Fund shall inure to the benefit of any director, officer,
20    or employee, except as reasonable compensation for
21    services or reimbursement for expenses; and
22        (3) Not contribute to or otherwise support any
23    political party or candidate for elective office.
 
24    Section 20-20. Board of Directors.

 

 

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1    (a) The Fund shall be managed by, and its powers,
2functions, and duties shall be exercised through, a Board to
3be composed of 11 members. The initial members of the Board
4shall be appointed by the Governor with the advice and consent
5of the Senate within 60 days after the effective date of this
6Act. Members of the Board shall be broadly representative of
7the communities that the Fund is designed to serve. Of such
8members:
9        (1) at least one member shall be selected from each of
10    the following geographic regions in the State: northeast,
11    northwest, central, and southern;
12        (2) at least 2 members shall have experience in
13    providing energy-related services to low-income,
14    environmental justice, or BIPOC communities;
15        (3) at least one member shall own or be employed by an
16    MBE or BIPOC-owned business focused on the deployment of
17    clean energy;
18        (4) at least one member shall be a policy or
19    implementation expert in serving low-income, environmental
20    justice or BIPOC communities or individuals, including
21    environmental justice communities, BIPOC communities,
22    formerly convicted persons, persons who are or were in the
23    child welfare system, displaced energy workers, gender
24    nonconforming and transgender individuals, or youth; and
25        (5) at least one member shall be from a
26    community-based organization with a specific mission to

 

 

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1    support racially and socioeconomically diverse
2    environmental justice communities.
3    (a-5) The terms of the initial members of the Board shall
4be as follows:
5        (1) 5 members appointed and confirmed shall have
6    initial 5-year terms;
7        (2) 3 members appointed and confirmed shall have
8    initial 4-year terms; and
9        (3) 3 members appointed and confirmed shall have
10    initial 3-year terms.
11    (b) Subsequent composition and terms.
12        (1) Except for the selection of the initial members of
13    the Board for their initial terms under paragraph (1) of
14    subsection (a) of this Section, the members of the Board
15    shall be elected by the members of the Board.
16        (2) A member of the Board shall be disqualified from
17    voting for any position on the Board for which such member
18    is a candidate.
19        (3) All members elected pursuant to paragraph (2) of
20    subsection (a) of this Section shall have a term of 5
21    years.
22    (c) The members of the Board shall be broadly
23representative of the communities that the Fund is designed to
24serve and shall collectively have expertise in environmental
25justice, energy efficiency, distributed renewable energy,
26workforce development, finance and investments, clean

 

 

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1transportation, and climate resilience. Of such members:
2        (1) not fewer than 2 shall be selected from each of the
3    following geographic regions in the State: northeast,
4    northwest, central, and southern;
5        (2) not fewer than 2 shall be from an MBE or
6    BIPOC-owned business focused on the deployment of clean
7    energy;
8        (3) not fewer than 2 shall be from a community-based
9    organization with a specific mission to support racially
10    and socioeconomically diverse environmental justice
11    communities; and
12        (4) not fewer than 2 shall be from an organization
13    specializing in providing energy-related services to
14    low-income, environmental justice, or BIPOC communities.
15        (5) Members of the Board can fulfill multiple
16    criteria, such as representing the southern region and an
17    MBE or BIPOC-owned business focused on the deployment of
18    clean energy.
19    (d) No officer or employee of the State or any other level
20of government may be appointed or elected as a member of the
21Board.
22    (e) Seven members of the Board shall constitute a quorum.
23    (f) The Board shall adopt, and may amend, such bylaws as
24are necessary for the proper management and functioning of the
25Fund. Such bylaws shall include designation of officers of the
26Fund and the duties of such officers.

 

 

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1    (g) No person who is an employee in any managerial or
2supervisory capacity, director, officer or agent or who is a
3member of the immediate family of any such employee, director,
4officer, or agent of any public utility is eligible to be a
5director. No director may hold any elective position, be a
6candidate for any elective position, be a State public
7official, be employed by the Illinois Commerce Commission, or
8be employed in a governmental position exempt from the
9Illinois Personnel Code.
10    (h) No director, nor member of his or her immediate family
11shall, either directly or indirectly, be employed for
12compensation as a staff member or consultant of the Fund.
13    (i) The Board shall hold regular meetings at least once
14every 3 months on such dates and at such places as it may
15determine. Meetings may be held by teleconference or
16videoconference. Special meetings may be called by the
17president or by a majority of the directors upon at least 7
18days' advance written notice. The act of the majority of the
19directors, present at a meeting at which a quorum is present,
20shall be the act of the Board of Directors unless the act of a
21greater number is required by this Act or bylaws. A summary of
22the minutes of every Board meeting shall be made available to
23each public library in the State upon request and to
24individuals upon request. Board of Directors meeting minutes
25shall be posted on the Fund's website within 14 days after
26Board approval of the minutes.

 

 

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1    (j) A director may not receive any compensation for his or
2her services but shall be reimbursed for necessary expenses,
3including travel expenses incurred in the discharge of duties.
4The Board shall establish standard allowances for mileage,
5room and meals and the purposes for which such allowances may
6be made and shall determine the reasonableness and necessity
7for such reimbursements.
8    (k) In the event of a vacancy on the Board, the Board of
9Directors shall appoint a temporary member, consistent with
10the requirements of the Board composition, to serve the
11remainder of the term for the vacant seat.
12    (l) The Board shall adopt rules for its own management and
13government, including bylaws and a conflict of interest
14policy.
15    (m) The Board of Directors of the Fund shall adopt written
16procedures for:
17        (1) adopting an annual budget and plan of operations,
18    including a requirement of Board approval before the
19    budget or plan may take effect;
20        (2) hiring, dismissing, promoting, and compensating
21    employees of the Fund, including an affirmative action
22    policy and a requirement of Board approval before a
23    position may be created or a vacancy filled;
24        (3) acquiring real and personal property and personal
25    services, including a requirement of Board approval for
26    any non-budgeted expenditure in excess of $5,000;

 

 

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1        (4) contracting for financial, legal, bond
2    underwriting and other professional services, including
3    requirements that the Fund (i) solicit proposals at least
4    once every 3 years for each such service that it uses, and
5    (ii) ensure equitable contracting with diverse suppliers;
6        (5) issuing and retiring bonds, bond anticipation
7    notes, and other obligations of the Fund; and
8        (6) awarding loans, grants and other financial
9    assistance, including (i) eligibility criteria, the
10    application process and the role played by the Fund's
11    staff and Board of Directors, and (ii) ensuring racial
12    equity in the awarding of loans, grants, and other
13    financial assistance.
14    (n) The Board shall develop a robust set of metrics to
15measure the degree to which the program is meeting the
16purposes set forth in Section 20-5 of this Act, and especially
17measuring adherence to the racial equity purposes set forth
18there, and a reporting format and schedule to be adhered to by
19the Fund officers and staff. These metrics and reports shall
20be posted quarterly on the Fund's website.
21    (o) The Board of Directors has the responsibility to make
22program adjustments necessary to ensure that the Clean Energy
23Jobs and Justice Fund is meeting the purposes set forth in this
24Act. Fund officers and staff and the Board of Directors are
25responsible for ensuring capital providers and Fund officers
26and staff, partners, and financial institutions are held to

 

 

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1state and federal standards for ethics and predatory lending
2practices and shall immediately remove any offending products
3and sponsoring organizations from Fund participation.
4    (p) The Board shall issue annually a report reviewing the
5activities of the Fund in detail and shall provide a copy of
6such report to the joint standing committees of the General
7Assembly having cognizance of matters relating to energy and
8commerce. The report shall be published on the Fund's website
9within 3 days after its submission to the General Assembly.
 
10    Section 20-25. Powers and duties.
11    (a) The Fund shall endeavor to perform the following
12actions, but is not limited to these specified actions:
13        (1) Develop programs to finance and otherwise support
14    clean energy investment and projects as determined by the
15    Fund in keeping with the purposes of this Act.
16        (2) Support financing or other expenditures that
17    promote investment in clean energy sources in order to (i)
18    foster the development and commercialization of clean
19    energy projects, including projects serving low-income,
20    environmental justice, and BIPOC communities, and (ii)
21    support project development by MBE and other contractors
22    of color.
23        (3) Prioritize the provision of public and private
24    capital for clean energy investment to MBEs and other
25    contractors of color, and to clean energy investment in

 

 

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1    low-income, environmental justice, and BIPOC communities.
2        (4) Provide access to grants, no-cost, and low-cost
3    loans to MBEs and other contractors of color, including
4    those participating in the Clean Energy Primes Contractor
5    Accelerator Program.
6        (5) Provide financial assistance in the form of
7    grants, loans, loan guarantees or debt and equity
8    investments, as approved in accordance with written
9    procedures.
10        (6) Assume or take title to any real property, convey
11    or dispose of its assets and pledge its revenues to secure
12    any borrowing, convey or dispose of its assets and pledge
13    its revenues to secure any borrowing, for the purpose of
14    developing, acquiring, constructing, refinancing,
15    rehabilitating or improving its assets or supporting its
16    programs, provided each such borrowing or mortgage, unless
17    otherwise provided by the Board or the Fund, shall be a
18    special obligation of the Fund, which obligation may be in
19    the form of bonds, bond anticipation notes, or other
20    obligations that evidence an indebtedness to the extent
21    permitted under this Act to fund, refinance and refund the
22    same and provide for the rights of holders thereof, and to
23    secure the same by pledge of revenues, notes and mortgages
24    of others, and which shall be payable solely from the
25    assets, revenues and other resources of the Fund and such
26    bonds may be secured by a special capital reserve fund

 

 

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1    contributed to by the State.
2        (7) Contract with community-based organizations to
3    design and implement program marketing, communications,
4    and outreach to potential users of the Fund's products,
5    particularly potential users in low-income, environmental
6    justice, and BIPOC communities. These contracts shall
7    include funding to ensure that the contracted
8    community-based organizations provide materials and
9    outreach support, including payments for time and
10    expenses, to other community organizations, professional
11    organizations, and subcontractors that have an interest in
12    the Fund's financial products.
13        (8) Collect the following data and perform monthly and
14    quarterly reporting to the Board in accordance with the
15    reporting format and schedule developed by the Board of
16    Directors:
17            (A) baseline data on capital sources or providers,
18        loan recipients, projects funded, loan terms, and
19        other relevant financial data;
20            (B) diversity and equity data, including race,
21        gender, socioeconomic, and geographic region; and
22            (C) program administration and servicing data.
23        These reports shall be published to the Fund's website
24        monthly and quarterly. Reports published to the
25        website may be anonymized to protect the data of
26        individual program participants.

 

 

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1        (9) Have the purposes as provided by resolution of the
2    Fund's Board of Directors, which purposes shall be
3    consistent with this Section and Section 20-5 of this Act.
4    No further action is required for the establishment of the
5    Fund, except the adoption of a resolution for the Fund.
6    (b) In addition to, and not in limitation of, any other
7power of the Fund set forth in this Section or any other
8provision of the general statutes, the Fund shall have and may
9exercise the following powers in furtherance of or in carrying
10out its purposes:
11        (1) have perpetual succession as a body corporate and
12    to adopt bylaws, policies, and procedures for the
13    regulation of its affairs and the conduct of its business;
14        (2) make and enter into all contracts and agreements
15    that are necessary or incidental to the conduct of its
16    business;
17        (3) invest in, acquire, lease, purchase, own, manage,
18    hold, sell, and dispose of real or personal property or
19    any interest therein;
20        (4) borrow money or guarantee a return to investors or
21    lenders;
22        (5) hold patents, copyrights, trademarks, marketing
23    rights, licenses, or other rights in intellectual
24    property;
25        (6) employ such assistants, agents, and employees as
26    may be necessary or desirable; establish all necessary or

 

 

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1    appropriate personnel practices and policies, including
2    those relating to hiring, promotion, compensation and
3    retirement, and engage consultants, attorneys, financial
4    advisers, appraisers, and other professional advisers as
5    may be necessary or desirable;
6        (7) invest any funds not needed for immediate use or
7    disbursement pursuant to investment policies adopted by
8    the Fund's Board of Directors;
9        (8) procure insurance against any loss or liability
10    with respect to its property or business of such types, in
11    such amounts and from such insurers as it deems desirable;
12        (9) enter into joint ventures and invest in, and
13    participate with any person, including, without
14    limitation, government entities and private corporations,
15    in the formation, ownership, management and operation of
16    business entities, including stock and nonstock
17    corporations, limited liability companies and general or
18    limited partnerships, formed to advance the purposes of
19    the Fund, provided members of the Board of Directors or
20    officers or employees of the Fund may serve as directors,
21    members or officers of any such business entity, and such
22    service shall be deemed to be in the discharge of the
23    duties or within the scope of the employment of any such
24    director, officer or employee, as the case may be, so long
25    as such director, officer or employee does not receive any
26    compensation or financial benefit as a result of serving

 

 

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1    in such role; and
2        (10) all other acts necessary or convenient to carry
3    out the purposes of this Act.
4    (c) Before making any loan, loan guarantee, or such other
5form of financing support or risk management for a clean
6energy project, the Fund shall develop standards to govern the
7administration of the Fund through rules, policies, and
8procedures that specify borrower eligibility, terms, and
9conditions of support, and other relevant criteria, standards,
10or procedures.
11    (d) Funding sources specifically authorized include, but
12are not limited to:
13        (1) funds repurposed from existing programs providing
14    financing support for clean energy projects, provided any
15    transfer of funds from such existing programs shall be
16    subject to approval by the General Assembly and shall be
17    used for expenses of financing, grants, and loans;
18        (2) any federal funds that can be used for the
19    purposes specified in this Act;
20        (3) charitable gifts, grants, contributions, as well
21    as loans from individuals, corporations, university
22    endowment funds, and philanthropic foundations; and
23        (4) earnings and interest derived from financing
24    support activities for clean energy projects backed by the
25    Fund.
26    (e) The Fund may enter into agreements with private

 

 

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1sources to raise capital.
2    (f) The Fund may assess reasonable fees on its financing
3activities to cover its reasonable costs and expenses, as
4determined by the Board.
5    (g) The Fund shall make information regarding the rates,
6terms and conditions for all of its financing support
7transactions available to the public for inspection, including
8formal annual reviews by both a private auditor conducted
9pursuant this Section and the Comptroller, and provide details
10to the public on the Internet, provided public disclosure
11shall be restricted for patentable ideas, trade secrets,
12proprietary or confidential commercial or financial
13information, disclosure of which may cause commercial harm to
14a nongovernmental recipient of such financing support and for
15other information exempt from public records disclosure.
16    (h) The powers enumerated in this Section shall be
17interpreted broadly to effectuate the purposes established in
18this Section and shall not be construed as a limitation of
19powers.
 
20    Section 20-30. Primary responsibilities in early program
21development.
22    (a) Consistent with the goals of this Act, the Fund has the
23authority to pursue a broad range of financial products and
24services. In early development of products and services
25offered, the Fund should consider the following programs as

 

 

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1its initial set of investment initiatives:
2        (1) a solar lease, power-purchase agreement, or
3    loan-to-own product specifically designed to complement
4    and grow the Illinois Solar for All Program;
5        (2) direct capitalization of contractors of color
6    participating in or graduating from the workforce and
7    business development programs established in the Energy
8    Transition Act;
9        (3) providing direct capitalization of community-based
10    projects in environmental justice communities through
11    upfront grants. Project applications should provide a
12    community benefit, align with environmental justice
13    communities, be in support of this Act's contractor and
14    workforce development goals, and support upfront planning,
15    development, and start up costs that often are not covered
16    prior to applying for program incentives and other loan
17    products;
18        (4) providing loan loss reserve products to secure
19    stable and low-interest financing for individual projects
20    and portfolios consistent with the goals of this Act that
21    would be otherwise unable to receive financing; and
22        (5) offering financing and administrative services for
23    municipal utilities and rural electric cooperatives to
24    create their own version of the on-bill Equitable Energy
25    Upgrade Program such as the Pay As You Save program
26    developed by the Energy Efficiency Institute.
 

 

 

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1    Section 20-35. Executive director and fund management.
2    (a) The executive director hired by the Board shall have
3the same qualifications as a director pursuant to subsections
4(d), (g), and (h) of Section 20-20 of this Act. The executive
5director may not be a candidate for the Board of Directors
6while serving as executive director. The executive director
7must have 5 or more years of experience in equitable and
8inclusive financing serving racially and socioeconomically
9diverse communities.
10    (b) To hire the executive director, the Board shall adhere
11to any applicable State or federal law prohibiting
12discrimination in employment.
13    (c) The Board shall require all applicants for the
14position of executive director of the Fund to file a financial
15statement consistent with requirements established by the
16Board. The Board shall require the executive director to file
17a current statement annually.
18    (d) The Fund shall be administered by the executive
19director and the staff and overseen by the Board of Directors.
20Fund officers and staff shall receive training in how to best
21provide services and support to low-income, environmental
22justice, and BIPOC communities and on supporting borrowers
23with loan applications, loan underwriting, and loan services.
 
24    Section 20-40. Dissolution. The Fund may dissolve or be

 

 

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1dissolved under the General Not for Profit Corporation Act.
 
2    Section 20-90. Repealer. This Act is repealed 24 years
3after the effective date of this Act.
 
4
Article 90.

 
5    Section 90-1. Legislative findings. The General Assembly
6finds and declares:
7        (1) The overall objectives of regulation of the
8    electric utility industry in this State, as expressed by
9    the General Assembly in the Illinois Power Agency Act and
10    the Public Utilities Act, include the provision of
11    adequate, efficient, reliable, environmentally safe, and
12    least-cost utility services at prices that accurately
13    reflect the long-term cost of such services and that are
14    equitable to all citizens.
15        (2) For many years, a significant portion of the
16    electricity consumed by consumers and businesses in this
17    State, particularly in the downstate region, has been
18    produced by large coal-fueled electric generating stations
19    located in the downstate region. However, in recent years,
20    the prices for electric generating capacity and energy
21    available to coal-fueled electric generating stations
22    located in the downstate region of this State have been
23    insufficient to enable many electric generating facilities

 

 

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1    located within the downstate region to remain in
2    operation, and have placed other electric generating
3    stations at risk of closure. Changes in environmental
4    regulations and, significantly, increasing concerns about
5    the effects of carbon emissions on the climate, have also
6    contributed to the retirement of coal-fueled generating
7    stations in the downstate region. As a result, the vast
8    majority of the coal-fueled generation located in
9    Illinois, and particularly in the downstate region, has
10    recently been retired or will be retired by no later than
11    the end of 2027.
12        (3) Reliable electric service at all times is
13    essential to the functioning of a modern economy and of
14    society in general. The health, welfare, and prosperity of
15    Illinois citizens, including the attractiveness of the
16    State of Illinois to business and industry, requires the
17    availability of sufficient electric generating capacity,
18    including energy storage capacity, to meet the demands of
19    consumers and businesses in this State at all times.
20    However, to a significant extent, electricity, when
21    generated, cannot be stored for future use in any
22    significant amount relative to the total amount of
23    electricity that existing generating facilities can
24    produce. Rather, for the most part, electricity must be
25    produced instantaneously at the time and in the amount
26    that it is demanded by residential and business consumers.

 

 

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1    The development of energy storage facilities provides some
2    opportunity to store some amounts of electricity for use
3    at later times; but energy storage facilities with
4    sufficient capacity to deliver electricity to meet the
5    demands of consumers in this State, 24 hours per day, 7
6    days per week on every day of the year, have not yet been
7    built.
8        (4) Both the Midcontinent Independent System Operator,
9    Inc., which is the independent transmission system
10    operator for downstate Illinois, and its Independent
11    Market Monitor, have expressed concerns about the
12    sufficiency of electric generating resources in downstate
13    Illinois over the next several years, due primarily to the
14    announced and anticipated retirements of coal-fueled
15    electric generating facilities and concerns about how
16    quickly and extensively new wind and solar generating
17    facilities will be placed into service. Concerns have also
18    been expressed, based on the intermittent nature of wind
19    and solar generating facilities, as to whether the grid
20    can operate reliably without sufficient dispatchable
21    generation resources or significant additions of energy
22    storage facilities to balance the output of renewable
23    generating facilities. The General Assembly believes that
24    the State cannot afford to find itself in a situation of
25    insufficient electric generating resources to meet the
26    needs of Illinois residential and business consumers 24

 

 

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1    hours a day, 7 days a week. Thus, consistent with the
2    overall objectives of the regulation of the electric
3    utility industry in this State and the interests of the
4    State in protecting the health and welfare of its
5    residents, regulation should ensure that sufficient
6    generating resources, including energy storage resources,
7    are available to enable the electric utility grid to meet
8    the demands of Illinois electricity consumers at all
9    times.
10        (5) Through previous enactments beginning in 2007, the
11    General Assembly has provided financial incentives for the
12    construction and operation of wind, solar, and other types
13    of renewable energy facilities to serve load in Illinois.
14    In such enactments, the General Assembly has recognized
15    that providing opportunities to enter into long-term
16    contracts for the purchase of renewable energy credits
17    from renewable energy facilities creates incentives, and
18    in fact is necessary, for the construction and operation
19    of such resources. Developers typically cannot,
20    financially, develop new, large-scale renewable energy
21    generating resources without having secured long-term
22    contracts for the renewable energy credits that the new
23    facilities will produce.
24        (6) The permitting and siting of new wind and solar
25    generating facilities in Illinois are subject to local
26    governmental control, and in many areas of this State,

 

 

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1    there has been strong opposition to the siting and
2    construction of new utility-scale wind and solar
3    generating facilities, which in turn has resulted in the
4    denial of, or withdrawal of requests for, necessary
5    approvals for some projects and the enactment of local
6    zoning ordinances imposing requirements and restrictions
7    that increase the costs and reduce the economic
8    attractiveness of such projects. This has resulted in
9    delay or cancellation of a number of renewable energy
10    projects. This experience demonstrates the advantages of
11    targeting the installation of new utility-scale renewable
12    energy facilities at sites that are already suitable for
13    installation of such facilities and can be readily
14    permitted.
15        (7) In light of the intermittent nature of many types
16    of renewable energy facilities, such as wind and solar
17    generation, the installation and operation of electricity
18    storage facilities in conjunction with the installation
19    and operation of renewable generation facilities can
20    enhance the value of renewable energy resources to the
21    electric grid.
22        (8) The sites of many of the large coal-fueled
23    electric generating stations located in the downstate
24    region of this State that have recently been retired or
25    announced for retirement, or are at risk of retirement,
26    have existing infrastructure and other characteristics

 

 

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1    which make them suitable potential sites for development
2    of new renewable energy generating facilities and
3    electricity storage facilities. This infrastructure and
4    other characteristics include large amounts of available
5    land situated at a suitable distance from populated areas,
6    suitable levels of exposure to sunlight, and high voltage
7    interconnections to nearby bulk electric system
8    transmission grid facilities at strategic locations.
9    Development of these generating plant sites for
10    large-scale renewable energy generating facilities,
11    particularly photovoltaic facilities which require large
12    amounts of space, and electricity storage facilities, can
13    help advance this State's objective of increasing the
14    portion of the State's total electricity usage that is
15    supplied by zero emission resources, and reducing the
16    proportion of the electricity produced in this State that
17    is produced by carbon-emitting resources, while supporting
18    the reliability of electric service in the downstate
19    region. Accordingly, the General Assembly finds that it is
20    in the public interest to encourage the redevelopment of
21    the sites of retired and still-operating coal-fueled
22    electric generating stations as locations for renewable
23    energy generating facilities and electricity storage
24    facilities.
25        (9) Many, if not all, of the coal-fueled electric
26    generating plants in this State that have recently been

 

 

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1    retired or announced for retirement, or are at near-term
2    risk of retirement, were at one time owned, at whole or in
3    part, by a public utility as defined in Section 3-105 of
4    the Public Utilities Act and were thereby devoted to
5    public service and the public use in Illinois, with their
6    costs paid for by rates paid by public utility ratepayers
7    in Illinois. The General Assembly finds that it is
8    appropriate to provide incentives to the owners of the
9    sites of coal-fueled electric generating facilities in
10    this State that were once owned by public utilities, to
11    repurpose those sites in a manner that continues to
12    benefit the public by providing for the generation of
13    carbon-free, non-emitting electricity and reliable bulk
14    electric service.
15        (10) The General Assembly finds it is appropriate for
16    the State of Illinois to establish a program to provide
17    incentives for the installation and operation of new
18    renewable energy facilities, along with energy storage
19    facilities, at the sites of retired and at-risk
20    coal-fueled electric generating facilities in this State,
21    to help expedite the transition of this State's electric
22    generation fleet to lower-emitting resources while
23    ensuring the availability of sufficient electric energy
24    resources to meet the demands of residential and business
25    electricity consumers in this State.
26        (11) In light of the foregoing findings, the purpose

 

 

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1    of the program established in subsection (c-5) of Section
2    1-75 of the Illinois Power Agency Act is to incentivize
3    and support conversion and development of unused (or to be
4    unused) sites of recently retired and soon to-be-retired
5    coal-fueled power plants in this State to productive new
6    uses as sites for the generation and provision of
7    electricity from renewable energy facilities and energy
8    storage facilities, thereby contributing to the State's
9    efforts to reduce carbon emissions from facilities in this
10    State and increase the production of the State's
11    electricity needs from clean energy resources. The
12    provisions of this Act also will support the reliability
13    of the bulk power grid in this State by incentivizing and
14    supporting installation of new generating facilities and
15    energy storage facilities at locations on the grid where
16    synchronous generation was formerly located.
 
17    Section 90-3. The Illinois Administrative Procedure Act is
18amended by adding 5-45.9 as follows:
 
19    (5 ILCS 100/5-45.9 new)
20    Sec. 5-45.9. Emergency rulemaking; Multi-Year Integrated
21Grid Plans. To provide for the expeditious and timely
22implementation of Section 16-105.17 of the Public Utilities
23Act, emergency rules implementing Section 16-105.17 of the
24Public Utilities Act may be adopted in accordance with Section

 

 

SB2408 Enrolled- 167 -LRB102 11366 BMS 16699 b

15-45 by the Illinois Commerce Commission. The adoption of
2emergency rules authorized by Section 5-45 and this Section is
3deemed to be necessary for the public interest, safety, and
4welfare.
5    This Section is repealed one year after the effective date
6of this amendatory Act of the 102nd General Assembly.
 
7    Section 90-5. The Illinois Governmental Ethics Act is
8amended by adding Section 1-121 and by changing Sections
94A-102 and 4A-103 as follows:
 
10    (5 ILCS 420/1-121 new)
11    Sec. 1-121. Public utility. "Public utility" has the
12meaning provided in Section 3-105 of the Public Utilities Act.
 
13    (5 ILCS 420/4A-102)  (from Ch. 127, par. 604A-102)
14    Sec. 4A-102. The statement of economic interests required
15by this Article shall include the economic interests of the
16person making the statement as provided in this Section. The
17interest (if constructively controlled by the person making
18the statement) of a spouse or any other party, shall be
19considered to be the same as the interest of the person making
20the statement. Campaign receipts shall not be included in this
21statement.
22        (a) The following interests shall be listed by all
23    persons required to file:

 

 

SB2408 Enrolled- 168 -LRB102 11366 BMS 16699 b

1            (1) The name, address and type of practice of any
2        professional organization or individual professional
3        practice in which the person making the statement was
4        an officer, director, associate, partner or
5        proprietor, or served in any advisory capacity, from
6        which income in excess of $1200 was derived during the
7        preceding calendar year;
8            (2) The nature of professional services (other
9        than services rendered to the unit or units of
10        government in relation to which the person is required
11        to file) and the nature of the entity to which they
12        were rendered if fees exceeding $5,000 were received
13        during the preceding calendar year from the entity for
14        professional services rendered by the person making
15        the statement.
16            (3) The identity (including the address or legal
17        description of real estate) of any capital asset from
18        which a capital gain of $5,000 or more was realized in
19        the preceding calendar year.
20            (4) The name of any unit of government which has
21        employed the person making the statement during the
22        preceding calendar year other than the unit or units
23        of government in relation to which the person is
24        required to file.
25            (5) The name of any entity from which a gift or
26        gifts, or honorarium or honoraria, valued singly or in

 

 

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1        the aggregate in excess of $500, was received during
2        the preceding calendar year.
3        (b) The following interests shall also be listed by
4    persons listed in items (a) through (f), item (l), item
5    (n), and item (p) of Section 4A-101:
6            (1) The name and instrument of ownership in any
7        entity doing business in the State of Illinois, in
8        which an ownership interest held by the person at the
9        date of filing is in excess of $5,000 fair market value
10        or from which dividends of in excess of $1,200 were
11        derived during the preceding calendar year. (In the
12        case of real estate, location thereof shall be listed
13        by street address, or if none, then by legal
14        description). No time or demand deposit in a financial
15        institution, nor any debt instrument need be listed;
16            (2) Except for professional service entities, the
17        name of any entity and any position held therein from
18        which income of in excess of $1,200 was derived during
19        the preceding calendar year, if the entity does
20        business in the State of Illinois. No time or demand
21        deposit in a financial institution, nor any debt
22        instrument need be listed.
23            (3) The identity of any compensated lobbyist with
24        whom the person making the statement maintains a close
25        economic association, including the name of the
26        lobbyist and specifying the legislative matter or

 

 

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1        matters which are the object of the lobbying activity,
2        and describing the general type of economic activity
3        of the client or principal on whose behalf that person
4        is lobbying.
5        (c) The following interests shall also be listed by
6    persons listed in items (a) through (c) and item (e) of
7    Section 4A-101.5:
8            (1) The name and instrument of ownership in any
9        entity doing business with a unit of local government
10        in relation to which the person is required to file if
11        the ownership interest of the person filing is greater
12        than $5,000 fair market value as of the date of filing
13        or if dividends in excess of $1,200 were received from
14        the entity during the preceding calendar year. (In the
15        case of real estate, location thereof shall be listed
16        by street address, or if none, then by legal
17        description). No time or demand deposit in a financial
18        institution, nor any debt instrument need be listed.
19            (2) Except for professional service entities, the
20        name of any entity and any position held therein from
21        which income in excess of $1,200 was derived during
22        the preceding calendar year if the entity does
23        business with a unit of local government in relation
24        to which the person is required to file. No time or
25        demand deposit in a financial institution, nor any
26        debt instrument need be listed.

 

 

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1            (3) The name of any entity and the nature of the
2        governmental action requested by any entity which has
3        applied to a unit of local government in relation to
4        which the person must file for any license, franchise
5        or permit for annexation, zoning or rezoning of real
6        estate during the preceding calendar year if the
7        ownership interest of the person filing is in excess
8        of $5,000 fair market value at the time of filing or if
9        income or dividends in excess of $1,200 were received
10        by the person filing from the entity during the
11        preceding calendar year.
12        (d) The following interest shall also be listed by
13    persons listed in items (a) through (f) of Section 4A-101:
14    the name of any spouse or immediate family member living
15    with such person employed by a public utility in this
16    State and the name of the public utility that employs such
17    person.
18    For the purposes of this Section, the unit of local
19government in relation to which a person is required to file
20under item (e) of Section 4A-101.5 shall be the unit of local
21government that contributes to the pension fund of which such
22person is a member of the board.
23(Source: P.A. 101-221, eff. 8-9-19.)
 
24    (5 ILCS 420/4A-103)  (from Ch. 127, par. 604A-103)
25    Sec. 4A-103. The statement of economic interests required

 

 

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1by this Article to be filed with the Secretary of State or
2county clerk shall be filled in by typewriting or hand
3printing, shall be verified, dated, and signed by the person
4making the statement and shall contain substantially the
5following:
 
6
STATEMENT OF ECONOMIC INTERESTS

 
7INSTRUCTIONS:
8    You may find the following documents helpful to you in
9completing this form:
10        (1) federal income tax returns, including any related
11    schedules, attachments, and forms; and
12        (2) investment and brokerage statements.
13    To complete this form, you do not need to disclose
14specific amounts or values or report interests relating either
15to political committees registered with the Illinois State
16Board of Elections or to political committees, principal
17campaign committees, or authorized committees registered with
18the Federal Election Commission.
19    The information you disclose will be available to the
20public.
21    You must answer all 6 questions. Certain questions will
22ask you to report any applicable assets or debts held in, or
23payable to, your name; held jointly by, or payable to, you with
24your spouse; or held jointly by, or payable to, you with your

 

 

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1minor child. If you have any concerns about whether an
2interest should be reported, please consult your department's
3ethics officer, if applicable.
4    Please ensure that the information you provide is complete
5and accurate. If you need more space than the form allows,
6please attach additional pages for your response. If you are
7subject to the State Officials and Employees Ethics Act, your
8ethics officer must review your statement of economic
9interests before you file it. Failure to complete the
10statement in good faith and within the prescribed deadline may
11subject you to fines, imprisonment, or both.
 
12BASIC INFORMATION:
13Name:........................................................
14Job title:...................................................
15Office, department, or agency that requires you to file this
16form:........................................................
17Other offices, departments, or agencies that require you to
18file a Statement of Economic Interests form: ................
19Full mailing address:........................................
20Preferred e-mail address (optional):.........................
 
21QUESTIONS:
22    1. If you have any single asset that was worth more than
23$10,000 as of the end of the preceding calendar year and is
24held in, or payable to, your name, held jointly by, or payable

 

 

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1to, you with your spouse, or held jointly by, or payable to,
2you with your minor child, list such assets below. In the case
3of investment real estate, list the city and state where the
4investment real estate is located. If you do not have any such
5assets, list "none" below.
6.............................................................
7.............................................................
8.............................................................
9.............................................................
10.............................................................
11    2. Excluding the position for which you are required to
12file this form, list the source of any income in excess of
13$7,500 required to be reported during the preceding calendar
14year. If you sold an asset that produced more than $7,500 in
15capital gains in the preceding calendar year, list the name of
16the asset and the transaction date on which the sale or
17transfer took place. If you had no such sources of income or
18assets, list "none" below.
 
19Source of Income / Name of Date Sold (if applicable)
20Asset
21............................... ...............................
22............................... ...............................
23............................... ...............................
24    3. Excluding debts incurred on terms available to the
25general public, such as mortgages, student loans, and credit

 

 

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1card debts, if you owed any single debt in the preceding
2calendar year exceeding $10,000, list the creditor of the debt
3below. If you had no such debts, list "none" below.
4    List the creditor for all applicable debts owed by you,
5owed jointly by you with your spouse, or owed jointly by you
6with your minor child. In addition to the types of debts listed
7above, you do not need to report any debts to or from financial
8institutions or government agencies, such as debts secured by
9automobiles, household furniture or appliances, as long as the
10debt was made on terms available to the general public, debts
11to members of your family, or debts to or from a political
12committee registered with the Illinois State Board of
13Elections or any political committee, principal campaign
14committee, or authorized committee registered with the Federal
15Election Commission.
16.............................................................
17.............................................................
18.............................................................
19.............................................................
20    4. List the name of each unit of government of which you or
21your spouse were an employee, contractor, or office holder
22during the preceding calendar year other than the unit or
23units of government in relation to which the person is
24required to file and the title of the position or nature of the
25contractual services.
 

 

 

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1Name of Unit of GovernmentTitle or Nature of Services
2............................... ...............................
3............................... ...............................
4............................... ...............................
5    5. If you maintain an economic relationship with a
6lobbyist or if a member of your family is known to you to be a
7lobbyist registered with any unit of government in the State
8of Illinois, list the name of the lobbyist below and identify
9the nature of your relationship with the lobbyist. If you do
10not have an economic relationship with a lobbyist or a family
11member known to you to be a lobbyist registered with any unit
12of government in the State of Illinois, list "none" below.
 
13Name of LobbyistRelationship to Filer
14............................... ...............................
15............................... ...............................
16............................... ...............................
17    6. List the name of each person, organization, or entity
18that was the source of a gift or gifts, or honorarium or
19honoraria, valued singly or in the aggregate in excess of $500
20received during the preceding calendar year and the type of
21gift or gifts, or honorarium or honoraria, excluding any gift
22or gifts from a member of your family that was not known to be
23a lobbyist registered with any unit of government in the State
24of Illinois. If you had no such gifts, list "none" below.
25.............................................................

 

 

 

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1.............................................................
2.............................................................
3    7. List the name of any spouse or immediate family member
4living with the person making this statement employed by a
5public utility in this State and the name of the public utility
6that employs the relative.
7Name and Relation Public Utility
8............................... ...............................
9..............................................................
10..............................................................
11VERIFICATION:
12    "I declare that this statement of economic interests
13(including any attachments) has been examined by me and to the
14best of my knowledge and belief is a true, correct and complete
15statement of my economic interests as required by the Illinois
16Governmental Ethics Act. I understand that the penalty for
17willfully filing a false or incomplete statement is a fine not
18to exceed $2,500 or imprisonment in a penal institution other
19than the penitentiary not to exceed one year, or both fine and
20imprisonment."
21Printed Name of Filer:.......................................
22Date:........................................................
23Signature:...................................................
 
24If this statement of economic interests requires ethics

 

 

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1officer review prior to filing, the applicable ethics officer
2must complete the following:
 
3CERTIFICATION OF ETHICS OFFICER REVIEW:
4    "In accordance with law, as Ethics Officer, I reviewed
5this statement of economic interests prior to its filing."
 
6Printed Name of Ethics Officer:..............................
7Date:........................................................
8Signature:...................................................
9Preferred e-mail address (optional):.........................
10
STATEMENT OF ECONOMIC INTEREST
11
(TYPE OR HAND PRINT)
12.............................................................
13(name)
14.............................................................
15(each office or position of employment for which this
16statement is filed)
17.............................................................
18(full mailing address)
19GENERAL DIRECTIONS:
20    The interest (if constructively controlled by the person
21making the statement) of a spouse or any other party, shall be
22considered to be the same as the interest of the person making
23the statement.
24    Campaign receipts shall not be included in this statement.

 

 

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1    If additional space is needed, please attach supplemental
2listing.
3    1. List the name and instrument of ownership in any entity
4doing business in the State of Illinois, in which the
5ownership interest held by the person at the date of filing is
6in excess of $5,000 fair market value or from which dividends
7in excess of $1,200 were derived during the preceding calendar
8year. (In the case of real estate, location thereof shall be
9listed by street address, or if none, then by legal
10description.) No time or demand deposit in a financial
11institution, nor any debt instrument need be listed.
12Business EntityInstrument of Ownership
13..............................................................
14..............................................................
15..............................................................
16..............................................................
17    2. List the name, address and type of practice of any
18professional organization in which the person making the
19statement was an officer, director, associate, partner or
20proprietor or served in any advisory capacity, from which
21income in excess of $1,200 was derived during the preceding
22calendar year.
23NameAddressType of Practice
24.............................................................
25.............................................................
26.............................................................

 

 

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1    3. List the nature of professional services rendered
2(other than to the State of Illinois) to each entity from which
3income exceeding $5,000 was received for professional services
4rendered during the preceding calendar year by the person
5making the statement.
6.............................................................
7.............................................................
8    4. List the identity (including the address or legal
9description of real estate) of any capital asset from which a
10capital gain of $5,000 or more was realized during the
11preceding calendar year.
12.............................................................
13.............................................................
14    5. List the identity of any compensated lobbyist with whom
15the person making the statement maintains a close economic
16association, including the name of the lobbyist and specifying
17the legislative matter or matters which are the object of the
18lobbying activity, and describing the general type of economic
19activity of the client or principal on whose behalf that
20person is lobbying.
21LobbyistLegislative MatterClient or Principal
22.............................................................
23.............................................................
24    6. List the name of any entity doing business in the State
25of Illinois from which income in excess of $1,200 was derived
26during the preceding calendar year other than for professional

 

 

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1services and the title or description of any position held in
2that entity. (In the case of real estate, location thereof
3shall be listed by street address, or if none, then by legal
4description). No time or demand deposit in a financial
5institution nor any debt instrument need be listed.
6EntityPosition Held
7..............................................................
8..............................................................
9..............................................................
10    7. List the name of any unit of government which employed
11the person making the statement during the preceding calendar
12year other than the unit or units of government in relation to
13which the person is required to file.
14.............................................................
15.............................................................
16    8. List the name of any entity from which a gift or gifts,
17or honorarium or honoraria, valued singly or in the aggregate
18in excess of $500, was received during the preceding calendar
19year.
20.............................................................
21VERIFICATION:
22    "I declare that this statement of economic interests
23(including any accompanying schedules and statements) has been
24examined by me and to the best of my knowledge and belief is a
25true, correct and complete statement of my economic interests
26as required by the Illinois Governmental Ethics Act. I

 

 

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1understand that the penalty for willfully filing a false or
2incomplete statement shall be a fine not to exceed $1,000 or
3imprisonment in a penal institution other than the
4penitentiary not to exceed one year, or both fine and
5imprisonment."
6................ ..........................................
7(date of filing) (signature of person making the statement)
8(Source: P.A. 95-173, eff. 1-1-08.)
 
9    Section 90-10. The State Officials and Employees Ethics
10Act is amended by changing Section 5-50 as follows:
 
11    (5 ILCS 430/5-50)
12    Sec. 5-50. Ex parte communications; special government
13agents.
14    (a) This Section applies to ex parte communications made
15to any agency listed in subsection (e).
16    (b) "Ex parte communication" means any written or oral
17communication by any person that imparts or requests material
18information or makes a material argument regarding potential
19action concerning regulatory, quasi-adjudicatory, investment,
20or licensing matters pending before or under consideration by
21the agency. "Ex parte communication" does not include the
22following: (i) statements by a person publicly made in a
23public forum; (ii) statements regarding matters of procedure
24and practice, such as format, the number of copies required,

 

 

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1the manner of filing, and the status of a matter; and (iii)
2statements made by a State employee of the agency to the agency
3head or other employees of that agency.
4    (b-5) An ex parte communication received by an agency,
5agency head, or other agency employee from an interested party
6or his or her official representative or attorney shall
7promptly be memorialized and made a part of the record.
8    (c) An ex parte communication received by any agency,
9agency head, or other agency employee, other than an ex parte
10communication described in subsection (b-5), shall immediately
11be reported to that agency's ethics officer by the recipient
12of the communication and by any other employee of that agency
13who responds to the communication. The ethics officer shall
14require that the ex parte communication be promptly made a
15part of the record. The ethics officer shall promptly file the
16ex parte communication with the Executive Ethics Commission,
17including all written communications, all written responses to
18the communications, and a memorandum prepared by the ethics
19officer stating the nature and substance of all oral
20communications, the identity and job title of the person to
21whom each communication was made, all responses made, the
22identity and job title of the person making each response, the
23identity of each person from whom the written or oral ex parte
24communication was received, the individual or entity
25represented by that person, any action the person requested or
26recommended, and any other pertinent information. The

 

 

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1disclosure shall also contain the date of any ex parte
2communication.
3    (d) "Interested party" means a person or entity whose
4rights, privileges, or interests are the subject of or are
5directly affected by a regulatory, quasi-adjudicatory,
6investment, or licensing matter. For purposes of an ex parte
7communication received by either the Illinois Commerce
8Commission or the Illinois Power Agency, "interested party"
9also includes: (1) an organization comprised of 2 or more
10businesses, persons, nonprofit entities, or any combination
11thereof, that are working in concert to advance public policy
12advocated by the organization, or (2) any party selling
13renewable energy resources procured by the Illinois Power
14Agency pursuant to Section 16-111.5 of the Public Utilities
15Act and Section 1-75 of the Illinois Power Agency Act.
16    (e) This Section applies to the following agencies:
17Executive Ethics Commission
18Illinois Commerce Commission
19Illinois Power Agency 
20Educational Labor Relations Board
21State Board of Elections
22Illinois Gaming Board
23Health Facilities and Services Review Board 
24Illinois Workers' Compensation Commission
25Illinois Labor Relations Board
26Illinois Liquor Control Commission

 

 

SB2408 Enrolled- 185 -LRB102 11366 BMS 16699 b

1Pollution Control Board
2Property Tax Appeal Board
3Illinois Racing Board
4Illinois Purchased Care Review Board
5Department of State Police Merit Board
6Motor Vehicle Review Board
7Prisoner Review Board
8Civil Service Commission
9Personnel Review Board for the Treasurer
10Merit Commission for the Secretary of State
11Merit Commission for the Office of the Comptroller
12Court of Claims
13Board of Review of the Department of Employment Security
14Department of Insurance
15Department of Professional Regulation and licensing boards
16  under the Department
17Department of Public Health and licensing boards under the
18  Department
19Office of Banks and Real Estate and licensing boards under
20  the Office
21State Employees Retirement System Board of Trustees
22Judges Retirement System Board of Trustees
23General Assembly Retirement System Board of Trustees
24Illinois Board of Investment
25State Universities Retirement System Board of Trustees
26Teachers Retirement System Officers Board of Trustees

 

 

SB2408 Enrolled- 186 -LRB102 11366 BMS 16699 b

1    (f) Any person who fails to (i) report an ex parte
2communication to an ethics officer, (ii) make information part
3of the record, or (iii) make a filing with the Executive Ethics
4Commission as required by this Section or as required by
5Section 5-165 of the Illinois Administrative Procedure Act
6violates this Act.
7(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
 
8    Section 90-15. The Department of Commerce and Economic
9Opportunity Law of the Civil Administrative Code of Illinois
10is amended by adding Section 605-1075 as follows:
 
11    (20 ILCS 605/605-1075 new)
12    Sec. 605-1075. Energy Transition Assistance Fund.
13    (a) The General Assembly hereby declares that management
14of several economic development programs requires a
15consolidated funding source to improve resource efficiency.
16The General Assembly specifically recognizes that properly
17serving communities and workers impacted by the energy
18transition requires that the Department of Commerce and
19Economic Opportunity have access to the resources required for
20the execution of the programs for workforce and contractor
21development, just transition investments and community
22support, and the implementation and administration of energy
23and justice efforts by the State.
24    (b) The Department shall be responsible for the

 

 

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1administration of the Energy Transition Assistance Fund and
2shall allocate funding on the basis of priorities established
3in this Section. Each year, the Department shall determine the
4available amount of resources in the Fund that can be
5allocated to the programs identified in this Section, and
6allocate the funding accordingly. The Department shall, to the
7extent practical, consider both the short-term and long-term
8costs of the programs and allocate funding so that the
9Department is able to cover both the short-term and long-term
10costs of these programs using projected revenue.
11    The available funding for each year shall be allocated
12from the Fund in the following order of priority:
13        (1) for costs related to the Clean Jobs Workforce
14    Network Program, up to $21,000,000 annually prior to June
15    1, 2023 and $24,333,333 annually thereafter;
16        (2) for costs related to the Clean Energy Contractor
17    Incubator Program, up to $21,000,000 annually;
18        (3) for costs related to the Clean Energy Primes
19    Contractor Accelerator Program, up to $9,000,000 annually;
20        (4) for costs related to the Barrier Reduction
21    Program, up to $21,000,000 annually;
22        (5) for costs related to the Jobs and Environmental
23    Justice Grant Program, up to $34,000,000 annually;
24        (6) for costs related to the Returning Residents Clean
25    Jobs Training Program, up to $6,000,000 annually;
26        (7) for costs related to Energy Transition Navigators,

 

 

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1    up to $6,000,000 annually;
2        (8) for costs related to the Illinois Climate Works
3    Preapprenticeship Program, up to $10,000,000 annually;
4        (9) for costs related to Energy Transition Community
5    Support Grants, up to $40,000,000 annually;
6        (10) for costs related to the Displaced Energy Worker
7    Dependent Scholarship, upon request by the Illinois
8    Student Assistance Commission, up to $1,100,000 annually;
9        (11) up to $10,000,000 annually shall be transferred
10    to the Public Utilities Fund for use by the Illinois
11    Commerce Commission for costs of administering the changes
12    made to the Public Utilities Act by this amendatory Act of
13    the 102nd General Assembly;
14        (12) up to $4,000,000 annually shall be transferred to
15    the Illinois Power Agency Operations Fund for use by the
16    Illinois Power Agency; and
17        (13) for costs related to the Clean Energy Jobs and
18    Justice Fund, up to $1,000,000 annually.
19    The Department is authorized to utilize up to 10% of the
20Energy Transition Assistance Fund for administrative and
21operational expenses to implement the requirements of this
22Act.
23    (c) Within 30 days after the effective date of this
24amendatory Act of the 102nd General Assembly, each electric
25utility serving more than 500,000 customers in the State shall
26report to the Department its total kilowatt-hours of energy

 

 

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1delivered during the 12 months ending on the immediately
2preceding May 31. By October 31, 2021 and each October 31
3thereafter, each electric utility serving more than 500,000
4customers in the State shall report to the Department its
5total kilowatt-hours of energy delivered during the 12 months
6ending on the immediately preceding May 31.
7    (d) The Department shall, within 60 days after the
8effective date of this amendatory Act of the 102nd General
9Assembly:
10        (1) determine the amount necessary, but not more than
11    $180,000,000, to meet the funding needs of the programs
12    reliant upon the Energy Transition Assistance Fund as a
13    revenue source for the period between the effective date
14    of this amendatory Act of the 102nd General Assembly and
15    December 31, 2021;
16        (2) determine, based on the kilowatt-hour deliveries
17    for the 12 months ending May 31, 2021 reported by the
18    electric utilities under subsection (c), the total energy
19    transition assistance charge to be allocated to each
20    electric utility for the period between the effective date
21    of this amendatory Act of the 102nd General Assembly and
22    December 31, 2021; and
23        (3) report the total energy transition assistance
24    charge applicable until December 31, 2021 to each electric
25    utility serving more than 500,000 customers in the State
26    and the Illinois Commerce Commission for purposes of

 

 

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1    filing the tariff pursuant to Section 16-108.30 of the
2    Public Utilities Act.
3    (e) The Department shall by November 30, 2021, and each
4November 30 thereafter:
5        (1) determine the amount necessary, but not more than
6    $180,000,000, to meet the funding needs of the programs
7    reliant upon the Energy Transition Assistance Fund as a
8    revenue source for the immediately following calendar
9    year;
10        (2) determine, based on the kilowatt-hour deliveries
11    for the 12 months ending on the immediately preceding May
12    31 reported to it by the electric utilities under
13    subsection (c), the total energy transition assistance
14    charge to be allocated to each electric utility for the
15    immediately following calendar year; and
16        (3) report the energy transition assistance charge
17    applicable for the immediately following calendar year to
18    each electric utility serving more than 500,000 customers
19    in the State and the Illinois Commerce Commission for
20    purposes of filing the tariff pursuant to Section
21    16-108.30 of the Public Utilities Act.
22    (f) The energy transition assistance charge may not exceed
23$180,000,000 annually. If, at the end of the calendar year,
24any surplus remains in the Energy Transition Assistance Fund,
25the Department may allocate the surplus from the fund in the
26following order of priority:

 

 

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1        (1) for costs related to the development of the
2    Stretch Energy Codes and other standards at the Capital
3    Development Board, up to $500,000 annually, at the request
4    of the Board;
5        (2) up to $7,000,000 annually shall be transferred to
6    the Energy Efficiency Trust Fund and Clean Air Act Permit
7    Fund for use by the Environmental Protection Agency for
8    costs related to energy efficiency and weatherization, and
9    costs of implementation, administration, and enforcement
10    of the Clean Air Act; and
11        (3) for costs related to State fleet electrification
12    at the Department of Central Management Services, up to
13    $10,000,000 annually, at the request of the Department.
 
14    Section 90-20. The Electric Vehicle Act is amended by
15changing Section 15 and by adding Sections 40, 45, 50, 55, and
1660 as follows:
 
17    (20 ILCS 627/15)
18    Sec. 15. Electric Vehicle Coordinator. The Governor, with
19the advice and consent of the Senate, shall appoint a person
20within the Illinois Environmental Protection Agency Department
21of Commerce and Economic Opportunity to serve as the Electric
22Vehicle Coordinator for the State of Illinois. This person may
23be an existing employee with other duties. The Coordinator
24shall act as a point person for electric vehicle-related and

 

 

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1electric vehicle charging-related electric vehicle related
2policies and activities in Illinois, including, but not
3limited to, the issuance of electric vehicle rebates for
4consumers and electric vehicle charging rebates for
5organizations and companies.
6(Source: P.A. 97-89, eff. 7-11-11.)
 
7    (20 ILCS 627/40 new)
8    Sec. 40. Rulemaking; resources. The Agency shall adopt
9rules as necessary and dedicate sufficient resources to
10implement Sections 45 and 55.
 
11    (20 ILCS 627/45 new)
12    Sec. 45. Beneficial electrification.
13    (a) It is the intent of the General Assembly to decrease
14reliance on fossil fuels, reduce pollution from the
15transportation sector, increase access to electrification for
16all consumers, and ensure that electric vehicle adoption and
17increased electricity usage and demand do not place
18significant additional burdens on the electric system and
19create benefits for Illinois residents.
20        (1) Illinois should increase the adoption of electric
21    vehicles in the State to 1,000,000 by 2030.
22        (2) Illinois should strive to be the best state in the
23    nation in which to drive and manufacture electric
24    vehicles.

 

 

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1        (3) Widespread adoption of electric vehicles is
2    necessary to electrify the transportation sector,
3    diversify the transportation fuel mix, drive economic
4    development, and protect air quality.
5        (4) Accelerating the adoption of electric vehicles
6    will drive the decarbonization of Illinois' transportation
7    sector.
8        (5) Expanded infrastructure investment will help
9    Illinois more rapidly decarbonize the transportation
10    sector.
11        (6) Statewide adoption of electric vehicles requires
12    increasing access to electrification for all consumers.
13        (7) Widespread adoption of electric vehicles requires
14    increasing public access to charging equipment throughout
15    Illinois, especially in low-income and environmental
16    justice communities, where levels of air pollution burden
17    tend to be higher.
18        (8) Widespread adoption of electric vehicles and
19    charging equipment has the potential to provide customers
20    with fuel cost savings and electric utility customers with
21    cost-saving benefits.
22        (9) Widespread adoption of electric vehicles can
23    improve an electric utility's electric system efficiency
24    and operational flexibility, including the ability of the
25    electric utility to integrate renewable energy resources
26    and make use of off-peak generation resources that support

 

 

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1    the operation of charging equipment.
2        (10) Widespread adoption of electric vehicles should
3    stimulate innovation, competition, and increased choices
4    in charging equipment and networks and should also attract
5    private capital investments and create high-quality jobs
6    in Illinois.
7    (b) As used in this Section:
8    "Agency" means the Environmental Protection Agency.
9    "Beneficial electrification programs" means programs that
10lower carbon dioxide emissions, replace fossil fuel use,
11create cost savings, improve electric grid operations, reduce
12increases to peak demand, improve electric usage load shape,
13and align electric usage with times of renewable generation.
14All beneficial electrification programs shall provide for
15incentives such that customers are induced to use electricity
16at times of low overall system usage or at times when
17generation from renewable energy sources is high. "Beneficial
18electrification programs" include a portfolio of the
19following:
20        (1) time-of-use electric rates;
21        (2) hourly pricing electric rates;
22        (3) optimized charging programs or programs that
23    encourage charging at times beneficial to the electric
24    grid;
25        (4) optional demand-response programs specifically
26    related to electrification efforts;

 

 

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1        (5) incentives for electrification and associated
2    infrastructure tied to using electricity at off-peak
3    times;
4        (6) incentives for electrification and associated
5    infrastructure targeted to medium-duty and heavy-duty
6    vehicles used by transit agencies;
7        (7) incentives for electrification and associated
8    infrastructure targeted to school buses;
9        (8) incentives for electrification and associated
10    infrastructure for medium-duty and heavy-duty government
11    and private fleet vehicles;
12        (9) low-income programs that provide access to
13    electric vehicles for communities where car ownership or
14    new car ownership is not common;
15        (10) incentives for electrification in eligible
16    communities;
17        (11) incentives or programs to enable quicker adoption
18    of electric vehicles by developing public charging
19    stations in dense areas, workplaces, and low-income
20    communities;
21        (12) incentives or programs to develop electric
22    vehicle infrastructure that minimizes range anxiety,
23    filling the gaps in deployment, particularly in rural
24    areas and along highway corridors;
25        (13) incentives to encourage the development of
26    electrification and renewable energy generation in close

 

 

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1    proximity in order to reduce grid congestion;
2        (14) offer support to low-income communities who are
3    experiencing financial and accessibility barriers such
4    that electric vehicle ownership is not an option; and
5        (15) other such programs as defined by the Commission.
6    "Black, indigenous, and people of color" or "BIPOC" means
7people who are members of the groups described in
8subparagraphs (a) through (e) of paragraph (A) of subsection
9(1) of Section 2 of the Business Enterprise for Minorities,
10Women, and Persons with Disabilities Act.
11    "Commission" means the Illinois Commerce Commission.
12    "Coordinator" means the Electric Vehicle Coordinator.
13    "Electric vehicle" means a vehicle that is exclusively
14powered by and refueled by electricity, must be plugged in to
15charge, and is licensed to drive on public roadways. "Electric
16vehicle" does not include electric motorcycles or hybrid
17electric vehicles and extended-range electric vehicles that
18are also equipped with conventional fueled propulsion or
19auxiliary engines.
20    "Electric vehicle charging station" means a station that
21delivers electricity from a source outside an electric vehicle
22into one or more electric vehicles.
23    "Environmental justice communities" means the definition
24of that term based on existing methodologies and findings,
25used and as may be updated by the Illinois Power Agency and its
26program administrator in the Illinois Solar for All Program.

 

 

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1    "Equity investment eligible community" or "eligible
2community" means the geographic areas throughout Illinois
3which would most benefit from equitable investments by the
4State designed to combat discrimination and foster sustainable
5economic growth. Specifically, "eligible community" means the
6following areas:
7        (1) areas where residents have been historically
8    excluded from economic opportunities, including
9    opportunities in the energy sector, as defined pursuant to
10    Section 10-40 of the Cannabis Regulation and Tax Act; and
11        (2) areas where residents have been historically
12    subject to disproportionate burdens of pollution,
13    including pollution from the energy sector, as established
14    by environmental justice communities as defined by the
15    Illinois Power Agency pursuant to Illinois Power Agency
16    Act, excluding any racial or ethnic indicators.
17    "Equity investment eligible person" or "eligible person"
18means the persons who would most benefit from equitable
19investments by the State designed to combat discrimination and
20foster sustainable economic growth. Specifically, "eligible
21person" means the following people:
22        (1) persons whose primary residence is in an equity
23    investment eligible community;
24        (2) persons who are graduates of or currently enrolled
25    in the foster care system; or
26        (3) persons who were formerly incarcerated.

 

 

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1    "Low-income" means persons and families whose income does
2not exceed 80% of the state median income for the current State
3fiscal year as established by the U.S. Department of Health
4and Human Services.
5    "Make-ready infrastructure" means the electrical and
6construction work necessary between the distribution circuit
7to the connection point of charging equipment.
8    "Optimized charging programs" mean programs whereby owners
9of electric vehicles can set their vehicles to be charged
10based on the electric system's current demand, retail or
11wholesale market rates, incentives, the carbon or other
12pollution intensity of the electric generation mix, the
13provision of grid services, efficient use of the electric
14grid, or the availability of clean energy generation.
15Optimized charging programs may be operated by utilities as
16well as third parties.
17    (c) The Commission shall initiate a workshop process no
18later than November 30, 2021 for the purpose of soliciting
19input on the design of beneficial electrification programs
20that the utility shall offer. The workshop shall be
21coordinated by the Staff of the Commission, or a facilitator
22retained by Staff, and shall be organized and facilitated in a
23manner that encourages representation from diverse
24stakeholders, including stakeholders representing
25environmental justice and low-income communities, and ensures
26equitable opportunities for participation, without requiring

 

 

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1formal intervention or representation by an attorney.
2    The stakeholder workshop process shall take into
3consideration the benefits of electric vehicle adoption and
4barriers to adoption, including:
5        (1) the benefit of lower bills for customers who do
6    not charge electric vehicles;
7        (2) benefits to the distribution system from electric
8    vehicle usage;
9        (3) the avoidance and reduction in capacity costs from
10    optimized charging and off-peak charging;
11        (4) energy price and cost reductions;
12        (5) environmental benefits, including greenhouse gas
13    emission and other pollution reductions;
14        (6) current barriers to mass-market adoption,
15    including cost of ownership and availability of charging
16    stations;
17        (7) current barriers to increasing access among
18    populations that have limited access to electric vehicle
19    ownership, communities significantly impacted by
20    transportation-related pollution, and market segments that
21    create disproportionate pollution impacts;
22        (8) benefits of and incentives for medium-duty and
23    heavy-duty fleet vehicle electrification;
24        (9) opportunities for eligible communities to benefit
25    from electrification;
26        (10) geographic areas and market segments that should

 

 

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1    be prioritized for electrification infrastructure
2    investment.
3    The workshops shall consider barriers, incentives,
4enabling rate structures, and other opportunities for the bill
5reduction and environmental benefits described in this
6subsection.
7    The workshop process shall conclude no later than February
828, 2022. Following the workshop, the Staff of the Commission,
9or the facilitator retained by the Staff, shall prepare and
10submit a report, no later than March 31, 2022, to the
11Commission that includes, but is not limited to,
12recommendations for transportation electrification investment
13or incentives in the following areas:
14        (i) publicly accessible Level 2 and fast-charging
15    stations, with a focus on bringing access to
16    transportation electrification in densely populated areas
17    and workplaces within eligible communities;
18        (ii) medium-duty and heavy-duty charging
19    infrastructure used by government and private fleet
20    vehicles that serve or travel through environmental
21    justice or eligible communities;
22        (iii) medium-duty and heavy-duty charging
23    infrastructure used in school bus operations, whether
24    private or public, that primarily serve governmental or
25    educational institutions, and also serve or travel through
26    environmental justice or eligible communities;

 

 

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1        (iv) public transit medium-duty and heavy-duty
2    charging infrastructure, developed in consultation with
3    public transportation agencies; and
4        (v) publicly accessible Level 2 and fast-charging
5    stations targeted to fill gaps in deployment, particularly
6    in rural areas and along State highway corridors.
7    The report must also identify the participants in the
8process, program designs proposed during the process,
9estimates of the costs and benefits of proposed programs, any
10material issues that remained unresolved at the conclusions of
11such process, and any recommendations for workshop process
12improvements. The report shall be used by the Commission to
13inform and evaluate the cost effectiveness and achievement of
14goals within the submitted Beneficial Electrification Plans.
15    (d) No later than July 1, 2022, electric utilities serving
16greater than 500,000 customers in the State shall file a
17Beneficial Electrification Plan with the Illinois Commerce
18Commission for programs that start no later than January 1,
192023. The plan shall take into consideration recommendations
20from the workshop report described in this Section. Within 45
21days after the filing of the Beneficial Electrification Plan,
22the Commission shall, with reasonable notice, open an
23investigation to consider whether the plan meets the
24objectives and contains the information required by this
25Section. The Commission shall determine if the proposed plan
26is cost-beneficial and in the public interest. When

 

 

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1considering if the plan is in the public interest and
2determining appropriate levels of cost recovery for
3investments and expenditures related to programs proposed by
4an electric utility, the Commission shall consider whether the
5investments and other expenditures are designed and reasonably
6expected to:
7        (1) maximize total energy cost savings and rate
8    reductions so that nonparticipants can benefit;
9        (2) address environmental justice interests by
10    ensuring there are significant opportunities for residents
11    and businesses in eligible communities to directly
12    participate in and benefit from beneficial electrification
13    programs;
14        (3) support at least a 40% investment of make-ready
15    infrastructure incentives to facilitate the rapid
16    deployment of charging equipment in or serving
17    environmental justice, low-income, and eligible
18    communities; however, nothing in this subsection is
19    intended to require a specific amount of spending in a
20    particular geographic area;
21        (4) support at least a 5% investment target in
22    electrifying medium-duty and heavy-duty school bus and
23    diesel public transportation vehicles located in or
24    serving environmental justice, low-income, and eligible
25    communities in order to provide those communities and
26    businesses with greater economic investment,

 

 

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1    transportation opportunities, and a cleaner environment so
2    they can directly benefit from transportation
3    electrification efforts; however, nothing in this
4    subsection is intended to require a specific amount of
5    spending in a particular geographic area;
6        (5) stimulate innovation, competition, private
7    investment, and increased consumer choices in electric
8    vehicle charging equipment and networks;
9        (6) contribute to the reduction of carbon emissions
10    and meeting air quality standards, including improving air
11    quality in eligible communities who disproportionately
12    suffer from emissions from the medium-duty and heavy-duty
13    transportation sector;
14        (7) support the efficient and cost-effective use of
15    the electric grid in a manner that supports electric
16    vehicle charging operations; and
17        (8) provide resources to support private investment in
18    charging equipment for uses in public and private charging
19    applications, including residential, multi-family, fleet,
20    transit, community, and corridor applications.
21    The plan shall be determined to be cost-beneficial if the
22total cost of beneficial electrification expenditures is less
23than the net present value of increased electricity costs
24(defined as marginal avoided energy, avoided capacity, and
25avoided transmission and distribution system costs) avoided by
26programs under the plan, the net present value of reductions

 

 

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1in other customer energy costs, net revenue from all electric
2charging in the service territory, and the societal value of
3reduced carbon emissions and surface-level pollutants,
4particularly in environmental justice communities. The
5calculation of costs and benefits should be based on net
6impacts, including the impact on customer rates.
7    The Commission shall approve, approve with modifications,
8or reject the plan within 270 days from the date of filing. The
9Commission may approve the plan if it finds that the plan will
10achieve the goals described in this Section and contains the
11information described in this Section. Proceedings under this
12Section shall proceed according to the rules provided by
13Article IX of the Public Utilities Act. Information contained
14in the approved plan shall be considered part of the record in
15any Commission proceeding under Section 16-107.6 of the Public
16Utilities Act, provided that a final order has not been
17entered prior to the initial filing date. The Beneficial
18Electrification Plan shall specifically address, at a minimum,
19the following:
20        (i) make-ready investments to facilitate the rapid
21    deployment of charging equipment throughout the State,
22    facilitate the electrification of public transit and other
23    vehicle fleets in the light-duty, medium-duty, and
24    heavy-duty sectors, and align with Agency-issued rebates
25    for charging equipment;
26        (ii) the development and implementation of beneficial

 

 

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1    electrification programs, including time-of-use rates and
2    their benefit for electric vehicle users and for all
3    customers, optimized charging programs to achieve savings
4    identified, and new contracts and compensation for
5    services in those programs, through signals that allow
6    electric vehicle charging to respond to local system
7    conditions, manage critical peak periods, serve as a
8    demand response or peak resource, and maximize renewable
9    energy use and integration into the grid;
10        (iii) optional commercial tariffs utilizing
11    alternatives to traditional demand-based rate structures
12    to facilitate charging for light duty, heavy duty, and
13    fleet electric vehicles;
14        (iv) financial and other challenges to electric
15    vehicle usage in low-income communities, and strategies
16    for overcoming those challenges, particularly in
17    communities and for people for whom car ownership is not
18    an option;
19        (v) methods of minimizing ratepayer impacts and
20    exempting or minimizing, to the extent possible,
21    low-income ratepayers from the costs associated with
22    facilitating the expansion of electric vehicle charging;
23        (vi) plans to increase access to Level 3 Public
24    Electric Vehicle Charging Infrastructure to serve vehicles
25    that need quicker charging times and vehicles of persons
26    who have no other access to charging infrastructure,

 

 

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1    regardless of whether those projects participate in
2    optimized charging programs;
3        (vii) whether to establish charging standards for type
4    of plugs eligible for investment or incentive programs,
5    and if so, what standards;
6        (viii) opportunities for coordination and cohesion
7    with electric vehicle and electric vehicle charging
8    equipment incentives established by any agency,
9    department, board, or commission of the State, any other
10    unit of government in the State, any national programs, or
11    any unit of the federal government;
12        (ix) ideas for the development of online tools,
13    applications, and data sharing that provide essential
14    information to those charging electric vehicles, and
15    enable an automated charging response to price signals,
16    emission signals, real-time renewable generation
17    production, and other Commission-approved or
18    customer-desired indicators of beneficial charging times;
19    and
20        (x) customer education, outreach, and incentive
21    programs that increase awareness of the programs and the
22    benefits of transportation electrification, including
23    direct outreach to eligible communities;
24    (e) Proceedings under this Section shall proceed according
25to the rules provided by Article IX of the Public Utilities
26Act. Information contained in the approved plan shall be

 

 

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1considered part of the record in any Commission proceeding
2under Section 16-107.6 of the Public Utilities Act, provided
3that a final order has not been entered prior to the initial
4filing date.
5    (f) The utility shall file an update to the plan on July 1,
62024 and every 3 years thereafter. This update shall describe
7transportation investments made during the prior plan period,
8investments planned for the following 24 months, and updates
9to the information required by this Section. Beginning with
10the first update, the utility shall develop the plan in
11conjunction with the distribution system planning process
12described in Section 16-105.17, including incorporation of
13stakeholder feedback from that process.
14    (g) Within 35 days after the utility files its report, the
15Commission shall, upon its own initiative, open an
16investigation regarding the utility's plan update to
17investigate whether the objectives described in this Section
18are being achieved. The Commission shall determine whether
19investment targets should be increased based on achievement of
20spending goals outlined in the Beneficial Electrification Plan
21and consistency with outcomes directed in the plan stakeholder
22workshop report. If the Commission finds, after notice and
23hearing, that the utility's plan is materially deficient, the
24Commission shall issue an order requiring the utility to
25devise a corrective action plan, subject to Commission
26approval, to bring the plan into compliance with the goals of

 

 

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1this Section. The Commission's order shall be entered within
2270 days after the utility files its annual report. The
3contents of a plan filed under this Section shall be available
4for evidence in Commission proceedings. However, omission from
5an approved plan shall not render any future utility
6expenditure to be considered unreasonable or imprudent. The
7Commission may, upon sufficient evidence, allow expenditures
8that were not part of any particular distribution plan. The
9Commission shall consider revenues from electric vehicles in
10the utility's service territory in evaluating the retail rate
11impact. The retail rate impact from the development of
12electric vehicle infrastructure shall not exceed 1% per year
13of the total annual revenue requirements of the utility.
14    (h) In meeting the requirements of this Section, the
15utility shall demonstrate efforts to increase the use of
16contractors and electric vehicle charging station installers
17that meet multiple workforce equity actions, including, but
18not limited to:
19        (1) the business is headquartered in or the person
20    resides in an eligible community;
21        (2) the business is majority owned by eligible person
22    or the contractor is an eligible person;
23        (3) the business or person is certified by another
24    municipal, State, federal, or other certification for
25    disadvantaged businesses;
26        (4) the business or person meets the eligibility

 

 

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1    criteria for a certification program such as:
2            (A) certified under Section 2 of the Business
3        Enterprise for Minorities, Women, and Persons with
4        Disabilities Act;
5            (B) certified by another municipal, State,
6        federal, or other certification for disadvantaged
7        businesses;
8            (C) submits an affidavit showing that the vendor
9        meets the eligibility criteria for a certification
10        program such as those in items (A) and (B); or
11            (D) if the vendor is a nonprofit, meets any of the
12        criteria in those in item (A), (B), or (C) with the
13        exception that the nonprofit is not required to meet
14        any criteria related to being a for-profit entity, or
15        is controlled by a board of directors that consists of
16        51% or greater individuals who are equity investment
17        eligible persons; or
18            (E) ensuring that program implementation
19        contractors and electric vehicle charging station
20        installers pay employees working on electric vehicle
21        charging installations at or above the prevailing wage
22        rate as published by the Department of Labor.
23    Utilities shall establish reporting procedures for vendors
24that ensure compliance with this subsection, but are
25structured to avoid, wherever possible, placing an undue
26administrative burden on vendors.

 

 

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1    (i) Program data collection.
2        (1) In order to ensure that the benefits provided to
3    Illinois residents and business by the clean energy
4    economy are equitably distributed across the State, it is
5    necessary to accurately measure the applicants and
6    recipients of this Program. The purpose of this paragraph
7    is to require the implementing utilities to collect all
8    data from Program applicants and beneficiaries to track
9    and improve equitable distribution of benefits across
10    Illinois communities. The further purpose is to measure
11    any potential impact of racial discrimination on the
12    distribution of benefits and provide the utilities the
13    information necessary to correct any discrimination
14    through methods consistent with State and federal law.
15        (2) The implementing utilities shall collect
16    demographic and geographic data for each applicant and
17    each person or business awarded benefits or contracts
18    under this Program.
19        (3) The implementing utilities shall collect the
20    following information from applicants and Program or
21    procurement beneficiaries where applicable:
22            (A) demographic information, including racial or
23        ethnic identity for real persons employed, contracted,
24        or subcontracted through the program;
25            (B) demographic information, including racial or
26        ethnic identity of business owners;

 

 

SB2408 Enrolled- 211 -LRB102 11366 BMS 16699 b

1            (C) geographic location of the residency of real
2        persons or geographic location of the headquarters for
3        businesses; and
4            (D) any other information necessary for the
5        purpose of achieving the purpose of this paragraph.
6        (4) The utility shall publish, at least annually,
7    aggregated information on the demographics of program and
8    procurement applicants and beneficiaries. The utilities
9    shall protect personal and confidential business
10    information as necessary.
11        (5) The utilities shall conduct a regular review
12    process to confirm the accuracy of reported data.
13        (6) On a quarterly basis, utilities shall collect data
14    necessary to ensure compliance with this Section and shall
15    communicate progress toward compliance to program
16    implementation contractors and electric vehicle charging
17    station installation vendors.
18        (7) Utilities filing Beneficial Electrification Plans
19    under this Section shall report annually to the Illinois
20    Commerce Commission and the General Assembly on how
21    hiring, contracting, job training, and other practices
22    related to its Beneficial electrification programs enhance
23    the diversity of vendors working on such programs. These
24    reports must include data on vendor and employee
25    diversity.
26    (j) The provisions of this Section are severable under

 

 

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1Section 1.31 of the Statute on Statutes.
 
2    (20 ILCS 627/55 new)
3    Sec. 55. Charging rebate program.
4    (a) In order to substantially offset the installation
5costs of electric vehicle charging infrastructure, beginning
6July 1, 2022, and continuing as long as funds are available,
7the Agency shall issue rebates, consistent with the
8Commission-approved Beneficial Electrification Plans in
9accordance with Section 45, to public and private
10organizations and companies to install and maintain Level 2 or
11Level 3 charging stations.
12    (b) The Agency shall award rebates or grants that fund up
13to 80% of the cost of the installation of charging stations.
14The Agency shall award additional incentives per port for
15every charging station installed in an eligible community and
16every charging station located to support eligible persons. In
17order to be eligible to receive a rebate or grant, the
18organization or company must submit an application to the
19Agency and commit to paying the prevailing wage for the
20installation project. The Agency shall by rule provide
21application and other programmatic details and requirements,
22including additional incentives for eligible communities. The
23Agency may determine per port or project caps based on a review
24of best practices and stakeholder engagement. The Agency shall
25accept applications on a rolling basis and shall award rebates

 

 

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1or grants within 60 days of each application. The Agency may
2not award rebates or grants to an organization or company that
3does not pay the prevailing wage for the installation of a
4charging station for which it seeks a rebate or grant.
 
5    (20 ILCS 627/60 new)
6    Sec. 60. Study on loss infrastructure funds and
7replacement options. The Illinois Department of Transportation
8shall conduct a study to be delivered to the members of the
9Illinois General Assembly and made available to the public no
10later than September 30, 2022. The study shall consider how
11the proliferation of electric vehicles will adversely affect
12resources needed for transportation infrastructure and take
13into consideration any relevant federal actions. The study
14shall identify the potential revenue loss and offer multiple
15options for replacing those lost revenues. The Illinois
16Department of Transportation shall collaborate with
17organizations representing businesses involved in designing
18and building transportation infrastructure, organized labor,
19the general business community, and users of the system. In
20addition, the Illinois Department of Transportation may
21collaborate with other state agencies, including but not
22limited to the Illinois Secretary of State and the Illinois
23Department of Revenue.
24    This Section is repealed on January 1, 2024.
 

 

 

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1    Section 90-23. The Illinois Enterprise Zone Act is amended
2by changing Section 5.5 as follows:
 
3    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
4    Sec. 5.5. High Impact Business.
5    (a) In order to respond to unique opportunities to assist
6in the encouragement, development, growth, and expansion of
7the private sector through large scale investment and
8development projects, the Department is authorized to receive
9and approve applications for the designation of "High Impact
10Businesses" in Illinois subject to the following conditions:
11        (1) such applications may be submitted at any time
12    during the year;
13        (2) such business is not located, at the time of
14    designation, in an enterprise zone designated pursuant to
15    this Act;
16        (3) the business intends to do one or more of the
17    following:
18            (A) the business intends to make a minimum
19        investment of $12,000,000 which will be placed in
20        service in qualified property and intends to create
21        500 full-time equivalent jobs at a designated location
22        in Illinois or intends to make a minimum investment of
23        $30,000,000 which will be placed in service in
24        qualified property and intends to retain 1,500
25        full-time retained jobs at a designated location in

 

 

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1        Illinois. The business must certify in writing that
2        the investments would not be placed in service in
3        qualified property and the job creation or job
4        retention would not occur without the tax credits and
5        exemptions set forth in subsection (b) of this
6        Section. The terms "placed in service" and "qualified
7        property" have the same meanings as described in
8        subsection (h) of Section 201 of the Illinois Income
9        Tax Act; or
10            (B) the business intends to establish a new
11        electric generating facility at a designated location
12        in Illinois. "New electric generating facility", for
13        purposes of this Section, means a newly-constructed
14        electric generation plant or a newly-constructed
15        generation capacity expansion at an existing electric
16        generation plant, including the transmission lines and
17        associated equipment that transfers electricity from
18        points of supply to points of delivery, and for which
19        such new foundation construction commenced not sooner
20        than July 1, 2001. Such facility shall be designed to
21        provide baseload electric generation and shall operate
22        on a continuous basis throughout the year; and (i)
23        shall have an aggregate rated generating capacity of
24        at least 1,000 megawatts for all new units at one site
25        if it uses natural gas as its primary fuel and
26        foundation construction of the facility is commenced

 

 

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1        on or before December 31, 2004, or shall have an
2        aggregate rated generating capacity of at least 400
3        megawatts for all new units at one site if it uses coal
4        or gases derived from coal as its primary fuel and
5        shall support the creation of at least 150 new
6        Illinois coal mining jobs, or (ii) shall be funded
7        through a federal Department of Energy grant before
8        December 31, 2010 and shall support the creation of
9        Illinois coal-mining jobs, or (iii) shall use coal
10        gasification or integrated gasification-combined cycle
11        units that generate electricity or chemicals, or both,
12        and shall support the creation of Illinois coal-mining
13        jobs. The business must certify in writing that the
14        investments necessary to establish a new electric
15        generating facility would not be placed in service and
16        the job creation in the case of a coal-fueled plant
17        would not occur without the tax credits and exemptions
18        set forth in subsection (b-5) of this Section. The
19        term "placed in service" has the same meaning as
20        described in subsection (h) of Section 201 of the
21        Illinois Income Tax Act; or
22            (B-5) the business intends to establish a new
23        gasification facility at a designated location in
24        Illinois. As used in this Section, "new gasification
25        facility" means a newly constructed coal gasification
26        facility that generates chemical feedstocks or

 

 

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1        transportation fuels derived from coal (which may
2        include, but are not limited to, methane, methanol,
3        and nitrogen fertilizer), that supports the creation
4        or retention of Illinois coal-mining jobs, and that
5        qualifies for financial assistance from the Department
6        before December 31, 2010. A new gasification facility
7        does not include a pilot project located within
8        Jefferson County or within a county adjacent to
9        Jefferson County for synthetic natural gas from coal;
10        or
11            (C) the business intends to establish production
12        operations at a new coal mine, re-establish production
13        operations at a closed coal mine, or expand production
14        at an existing coal mine at a designated location in
15        Illinois not sooner than July 1, 2001; provided that
16        the production operations result in the creation of
17        150 new Illinois coal mining jobs as described in
18        subdivision (a)(3)(B) of this Section, and further
19        provided that the coal extracted from such mine is
20        utilized as the predominant source for a new electric
21        generating facility. The business must certify in
22        writing that the investments necessary to establish a
23        new, expanded, or reopened coal mine would not be
24        placed in service and the job creation would not occur
25        without the tax credits and exemptions set forth in
26        subsection (b-5) of this Section. The term "placed in

 

 

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1        service" has the same meaning as described in
2        subsection (h) of Section 201 of the Illinois Income
3        Tax Act; or
4            (D) the business intends to construct new
5        transmission facilities or upgrade existing
6        transmission facilities at designated locations in
7        Illinois, for which construction commenced not sooner
8        than July 1, 2001. For the purposes of this Section,
9        "transmission facilities" means transmission lines
10        with a voltage rating of 115 kilovolts or above,
11        including associated equipment, that transfer
12        electricity from points of supply to points of
13        delivery and that transmit a majority of the
14        electricity generated by a new electric generating
15        facility designated as a High Impact Business in
16        accordance with this Section. The business must
17        certify in writing that the investments necessary to
18        construct new transmission facilities or upgrade
19        existing transmission facilities would not be placed
20        in service without the tax credits and exemptions set
21        forth in subsection (b-5) of this Section. The term
22        "placed in service" has the same meaning as described
23        in subsection (h) of Section 201 of the Illinois
24        Income Tax Act; or
25            (E) the business intends to establish a new wind
26        power facility at a designated location in Illinois.

 

 

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1        For purposes of this Section, "new wind power
2        facility" means a newly constructed electric
3        generation facility, or a newly constructed expansion
4        of an existing electric generation facility, placed in
5        service on or after July 1, 2009, that generates
6        electricity using wind energy devices, and such
7        facility shall be deemed to include all associated
8        transmission lines, substations, and other equipment
9        related to the generation of electricity from wind
10        energy devices. For purposes of this Section, "wind
11        energy device" means any device, with a nameplate
12        capacity of at least 0.5 megawatts, that is used in the
13        process of converting kinetic energy from the wind to
14        generate electricity; or
15            (E-5) the business intends to establish a new
16        utility-scale solar facility at a designated location
17        in Illinois. For purposes of this Section, "new
18        utility-scale solar power facility" means a newly
19        constructed electric generation facility, or a newly
20        constructed expansion of an existing electric
21        generation facility, placed in service on or after
22        July 1, 2021, that (i) generates electricity using
23        photovoltaic cells and (ii) has a nameplate capacity
24        that is greater than 5,000 kilowatts, and such
25        facility shall be deemed to include all associated
26        transmission lines, substations, energy storage

 

 

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1        facilities, and other equipment related to the
2        generation and storage of electricity from
3        photovoltaic cells; or
4            (F) the business commits to (i) make a minimum
5        investment of $500,000,000, which will be placed in
6        service in a qualified property, (ii) create 125
7        full-time equivalent jobs at a designated location in
8        Illinois, (iii) establish a fertilizer plant at a
9        designated location in Illinois that complies with the
10        set-back standards as described in Table 1: Initial
11        Isolation and Protective Action Distances in the 2012
12        Emergency Response Guidebook published by the United
13        States Department of Transportation, (iv) pay a
14        prevailing wage for employees at that location who are
15        engaged in construction activities, and (v) secure an
16        appropriate level of general liability insurance to
17        protect against catastrophic failure of the fertilizer
18        plant or any of its constituent systems; in addition,
19        the business must agree to enter into a construction
20        project labor agreement including provisions
21        establishing wages, benefits, and other compensation
22        for employees performing work under the project labor
23        agreement at that location; for the purposes of this
24        Section, "fertilizer plant" means a newly constructed
25        or upgraded plant utilizing gas used in the production
26        of anhydrous ammonia and downstream nitrogen

 

 

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1        fertilizer products for resale; for the purposes of
2        this Section, "prevailing wage" means the hourly cash
3        wages plus fringe benefits for training and
4        apprenticeship programs approved by the U.S.
5        Department of Labor, Bureau of Apprenticeship and
6        Training, health and welfare, insurance, vacations and
7        pensions paid generally, in the locality in which the
8        work is being performed, to employees engaged in work
9        of a similar character on public works; this paragraph
10        (F) applies only to businesses that submit an
11        application to the Department within 60 days after
12        July 25, 2013 (the effective date of Public Act
13        98-109) this amendatory Act of the 98th General
14        Assembly; and
15        (4) no later than 90 days after an application is
16    submitted, the Department shall notify the applicant of
17    the Department's determination of the qualification of the
18    proposed High Impact Business under this Section.
19    (b) Businesses designated as High Impact Businesses
20pursuant to subdivision (a)(3)(A) of this Section shall
21qualify for the credits and exemptions described in the
22following Acts: Section 9-222 and Section 9-222.1A of the
23Public Utilities Act, subsection (h) of Section 201 of the
24Illinois Income Tax Act, and Section 1d of the Retailers'
25Occupation Tax Act; provided that these credits and exemptions
26described in these Acts shall not be authorized until the

 

 

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1minimum investments set forth in subdivision (a)(3)(A) of this
2Section have been placed in service in qualified properties
3and, in the case of the exemptions described in the Public
4Utilities Act and Section 1d of the Retailers' Occupation Tax
5Act, the minimum full-time equivalent jobs or full-time
6retained jobs set forth in subdivision (a)(3)(A) of this
7Section have been created or retained. Businesses designated
8as High Impact Businesses under this Section shall also
9qualify for the exemption described in Section 5l of the
10Retailers' Occupation Tax Act. The credit provided in
11subsection (h) of Section 201 of the Illinois Income Tax Act
12shall be applicable to investments in qualified property as
13set forth in subdivision (a)(3)(A) of this Section.
14    (b-5) Businesses designated as High Impact Businesses
15pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
16and (a)(3)(D) of this Section shall qualify for the credits
17and exemptions described in the following Acts: Section 51 of
18the Retailers' Occupation Tax Act, Section 9-222 and Section
199-222.1A of the Public Utilities Act, and subsection (h) of
20Section 201 of the Illinois Income Tax Act; however, the
21credits and exemptions authorized under Section 9-222 and
22Section 9-222.1A of the Public Utilities Act, and subsection
23(h) of Section 201 of the Illinois Income Tax Act shall not be
24authorized until the new electric generating facility, the new
25gasification facility, the new transmission facility, or the
26new, expanded, or reopened coal mine is operational, except

 

 

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1that a new electric generating facility whose primary fuel
2source is natural gas is eligible only for the exemption under
3Section 5l of the Retailers' Occupation Tax Act.
4    (b-6) Businesses designated as High Impact Businesses
5pursuant to subdivision (a)(3)(E) of this Section shall
6qualify for the exemptions described in Section 5l of the
7Retailers' Occupation Tax Act; any business so designated as a
8High Impact Business being, for purposes of this Section, a
9"Wind Energy Business".
10    (b-7) Beginning on January 1, 2021, businesses designated
11as High Impact Businesses by the Department shall qualify for
12the High Impact Business construction jobs credit under
13subsection (h-5) of Section 201 of the Illinois Income Tax Act
14if the business meets the criteria set forth in subsection (i)
15of this Section. The total aggregate amount of credits awarded
16under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
17this amendatory Act of the 101st General Assembly) shall not
18exceed $20,000,000 in any State fiscal year.
19    (c) High Impact Businesses located in federally designated
20foreign trade zones or sub-zones are also eligible for
21additional credits, exemptions and deductions as described in
22the following Acts: Section 9-221 and Section 9-222.1 of the
23Public Utilities Act; and subsection (g) of Section 201, and
24Section 203 of the Illinois Income Tax Act.
25    (d) Except for businesses contemplated under subdivision
26(a)(3)(E) of this Section, existing Illinois businesses which

 

 

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1apply for designation as a High Impact Business must provide
2the Department with the prospective plan for which 1,500
3full-time retained jobs would be eliminated in the event that
4the business is not designated.
5    (e) Except for new wind power facilities contemplated
6under subdivision (a)(3)(E) of this Section, new proposed
7facilities which apply for designation as High Impact Business
8must provide the Department with proof of alternative
9non-Illinois sites which would receive the proposed investment
10and job creation in the event that the business is not
11designated as a High Impact Business.
12    (f) Except for businesses contemplated under subdivision
13(a)(3)(E) of this Section, in the event that a business is
14designated a High Impact Business and it is later determined
15after reasonable notice and an opportunity for a hearing as
16provided under the Illinois Administrative Procedure Act, that
17the business would have placed in service in qualified
18property the investments and created or retained the requisite
19number of jobs without the benefits of the High Impact
20Business designation, the Department shall be required to
21immediately revoke the designation and notify the Director of
22the Department of Revenue who shall begin proceedings to
23recover all wrongfully exempted State taxes with interest. The
24business shall also be ineligible for all State funded
25Department programs for a period of 10 years.
26    (g) The Department shall revoke a High Impact Business

 

 

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1designation if the participating business fails to comply with
2the terms and conditions of the designation. However, the
3penalties for new wind power facilities or Wind Energy
4Businesses for failure to comply with any of the terms or
5conditions of the Illinois Prevailing Wage Act shall be only
6those penalties identified in the Illinois Prevailing Wage
7Act, and the Department shall not revoke a High Impact
8Business designation as a result of the failure to comply with
9any of the terms or conditions of the Illinois Prevailing Wage
10Act in relation to a new wind power facility or a Wind Energy
11Business.
12    (h) Prior to designating a business, the Department shall
13provide the members of the General Assembly and Commission on
14Government Forecasting and Accountability with a report
15setting forth the terms and conditions of the designation and
16guarantees that have been received by the Department in
17relation to the proposed business being designated.
18    (i) High Impact Business construction jobs credit.
19Beginning on January 1, 2021, a High Impact Business may
20receive a tax credit against the tax imposed under subsections
21(a) and (b) of Section 201 of the Illinois Income Tax Act in an
22amount equal to 50% of the amount of the incremental income tax
23attributable to High Impact Business construction jobs credit
24employees employed in the course of completing a High Impact
25Business construction jobs project. However, the High Impact
26Business construction jobs credit may equal 75% of the amount

 

 

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1of the incremental income tax attributable to High Impact
2Business construction jobs credit employees if the High Impact
3Business construction jobs credit project is located in an
4underserved area.
5    The Department shall certify to the Department of Revenue:
6(1) the identity of taxpayers that are eligible for the High
7Impact Business construction jobs credit; and (2) the amount
8of High Impact Business construction jobs credits that are
9claimed pursuant to subsection (h-5) of Section 201 of the
10Illinois Income Tax Act in each taxable year. Any business
11entity that receives a High Impact Business construction jobs
12credit shall maintain a certified payroll pursuant to
13subsection (j) of this Section.
14    As used in this subsection (i):
15    "High Impact Business construction jobs credit" means an
16amount equal to 50% (or 75% if the High Impact Business
17construction project is located in an underserved area) of the
18incremental income tax attributable to High Impact Business
19construction job employees. The total aggregate amount of
20credits awarded under the Blue Collar Jobs Act (Article 20 of
21Public Act 101-9 this amendatory Act of the 101st General
22Assembly) shall not exceed $20,000,000 in any State fiscal
23year
24    "High Impact Business construction job employee" means a
25laborer or worker who is employed by an Illinois contractor or
26subcontractor in the actual construction work on the site of a

 

 

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1High Impact Business construction job project.
2    "High Impact Business construction jobs project" means
3building a structure or building or making improvements of any
4kind to real property, undertaken and commissioned by a
5business that was designated as a High Impact Business by the
6Department. The term "High Impact Business construction jobs
7project" does not include the routine operation, routine
8repair, or routine maintenance of existing structures,
9buildings, or real property.
10    "Incremental income tax" means the total amount withheld
11during the taxable year from the compensation of High Impact
12Business construction job employees.
13    "Underserved area" means a geographic area that meets one
14or more of the following conditions:
15        (1) the area has a poverty rate of at least 20%
16    according to the latest federal decennial census;
17        (2) 75% or more of the children in the area
18    participate in the federal free lunch program according to
19    reported statistics from the State Board of Education;
20        (3) at least 20% of the households in the area receive
21    assistance under the Supplemental Nutrition Assistance
22    Program (SNAP); or
23        (4) the area has an average unemployment rate, as
24    determined by the Illinois Department of Employment
25    Security, that is more than 120% of the national
26    unemployment average, as determined by the U.S. Department

 

 

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1    of Labor, for a period of at least 2 consecutive calendar
2    years preceding the date of the application.
3    (j) Each contractor and subcontractor who is engaged in
4and executing a High Impact Business Construction jobs
5project, as defined under subsection (i) of this Section, for
6a business that is entitled to a credit pursuant to subsection
7(i) of this Section shall:
8        (1) make and keep, for a period of 5 years from the
9    date of the last payment made on or after June 5, 2021 (the
10    effective date of Public Act 101-9) this amendatory Act of
11    the 101st General Assembly on a contract or subcontract
12    for a High Impact Business Construction Jobs Project,
13    records for all laborers and other workers employed by the
14    contractor or subcontractor on the project; the records
15    shall include:
16            (A) the worker's name;
17            (B) the worker's address;
18            (C) the worker's telephone number, if available;
19            (D) the worker's social security number;
20            (E) the worker's classification or
21        classifications;
22            (F) the worker's gross and net wages paid in each
23        pay period;
24            (G) the worker's number of hours worked each day;
25            (H) the worker's starting and ending times of work
26        each day;

 

 

SB2408 Enrolled- 229 -LRB102 11366 BMS 16699 b

1            (I) the worker's hourly wage rate; and
2            (J) the worker's hourly overtime wage rate;
3        (2) no later than the 15th day of each calendar month,
4    provide a certified payroll for the immediately preceding
5    month to the taxpayer in charge of the High Impact
6    Business construction jobs project; within 5 business days
7    after receiving the certified payroll, the taxpayer shall
8    file the certified payroll with the Department of Labor
9    and the Department of Commerce and Economic Opportunity; a
10    certified payroll must be filed for only those calendar
11    months during which construction on a High Impact Business
12    construction jobs project has occurred; the certified
13    payroll shall consist of a complete copy of the records
14    identified in paragraph (1) of this subsection (j), but
15    may exclude the starting and ending times of work each
16    day; the certified payroll shall be accompanied by a
17    statement signed by the contractor or subcontractor or an
18    officer, employee, or agent of the contractor or
19    subcontractor which avers that:
20            (A) he or she has examined the certified payroll
21        records required to be submitted by the Act and such
22        records are true and accurate; and
23            (B) the contractor or subcontractor is aware that
24        filing a certified payroll that he or she knows to be
25        false is a Class A misdemeanor.
26    A general contractor is not prohibited from relying on a

 

 

SB2408 Enrolled- 230 -LRB102 11366 BMS 16699 b

1certified payroll of a lower-tier subcontractor, provided the
2general contractor does not knowingly rely upon a
3subcontractor's false certification.
4    Any contractor or subcontractor subject to this
5subsection, and any officer, employee, or agent of such
6contractor or subcontractor whose duty as an officer,
7employee, or agent it is to file a certified payroll under this
8subsection, who willfully fails to file such a certified
9payroll on or before the date such certified payroll is
10required by this paragraph to be filed and any person who
11willfully files a false certified payroll that is false as to
12any material fact is in violation of this Act and guilty of a
13Class A misdemeanor.
14    The taxpayer in charge of the project shall keep the
15records submitted in accordance with this subsection on or
16after June 5, 2021 (the effective date of Public Act 101-9)
17this amendatory Act of the 101st General Assembly for a period
18of 5 years from the date of the last payment for work on a
19contract or subcontract for the High Impact Business
20construction jobs project.
21    The records submitted in accordance with this subsection
22shall be considered public records, except an employee's
23address, telephone number, and social security number, and
24made available in accordance with the Freedom of Information
25Act. The Department of Labor shall accept any reasonable
26submissions by the contractor that meet the requirements of

 

 

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1this subsection (j) and shall share the information with the
2Department in order to comply with the awarding of a High
3Impact Business construction jobs credit. A contractor,
4subcontractor, or public body may retain records required
5under this Section in paper or electronic format.
6    (k) Upon 7 business days' notice, each contractor and
7subcontractor shall make available for inspection and copying
8at a location within this State during reasonable hours, the
9records identified in this subsection (j) to the taxpayer in
10charge of the High Impact Business construction jobs project,
11its officers and agents, the Director of the Department of
12Labor and his or her deputies and agents, and to federal,
13State, or local law enforcement agencies and prosecutors.
14(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
15    Section 90-24. The Department of Labor Law of the Civil
16Administrative Code of Illinois is amended by changing Section
171505-215 and by adding Section 1505-220 as follows:
 
18    (20 ILCS 1505/1505-215)
19    Sec. 1505-215. Bureau on Apprenticeship Programs and Clean
20Energy Jobs ; Advisory Board.
21    (a) For purposes of this Section, "clean energy sector"
22means solar energy, wind energy, energy efficiency, solar
23thermal, green hydrogen, geothermal, and electric vehicle
24industries and other renewable energy industries, industries

 

 

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1achieving emission reductions, and related industries that
2manufacture, develop, build, maintain, or provide ancillary
3services to renewable energy resources or energy efficiency
4products or services, including the manufacture and
5installation of healthier building materials that contain
6fewer hazardous chemicals.
7    (b) There is created within the Department of Labor a
8Bureau on Apprenticeship Programs and Clean Energy Jobs. This
9Bureau shall work to increase minority participation in active
10apprentice programs in Illinois that are approved by the
11United States Department of Labor and in clean energy jobs in
12Illinois. The Bureau shall identify barriers to minorities
13gaining access to construction careers and careers in the
14clean energy sector and make recommendations to the Governor
15and the General Assembly for policies to remove those
16barriers. The Department may hire staff to perform outreach in
17promoting diversity in active apprenticeship programs approved
18by the United States Department of Labor.
19    (c) The Bureau shall annually compile racial and gender
20workforce diversity information from contractors receiving
21State or other public funds and by labor unions with members
22working on projects receiving State or other public funds.
23    (d) The Bureau shall compile racial and gender workforce
24diversity information from certified transcripts of payroll
25reports filed in the preceding year pursuant to the Prevailing
26Wage Act for all clean energy sector construction projects.

 

 

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1The Bureau shall work with the Department of Commerce and
2Economic Opportunity, the Illinois Power Agency, the Illinois
3Commerce Commission, and other agencies, as necessary, to
4receive and share data and reporting on racial and gender
5workforce diversity, demographic data, and any other data
6necessary to achieve the goals of this Section.
7    (e) By April 15, 2022 and every April 15 thereafter, the
8Bureau shall publish and make available on the Department's
9website a report summarizing the racial and gender diversity
10of the workforce on all clean energy sector projects by
11county. The report shall use a consistent structure for
12information requests and presentation, with an easy-to-use
13table of contents, to enable comparable year-over-year
14solicitation and benchmarking of data. The development of the
15report structure shall be open to a public review and comment
16period. That report shall compare the race, ethnicity, and
17gender of the workers on covered clean energy sector projects
18to the general population of the county in which the project is
19located. The report shall also disaggregate such data to
20compare the race, ethnicity, and gender of workers employed by
21union and nonunion contractors and compare the race,
22ethnicity, and gender of workers who reside in Illinois and
23those who reside outside of Illinois. The report shall also
24include the race, ethnicity, and gender of the workers by
25prevailing wage classification.
26    (f) The Bureau shall present its annual report to the

 

 

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1Energy Workforce Advisory Council in order to inform its
2program evaluations, recommendations, and objectives pursuant
3to Section 5-65 of the Energy Transition Act. The Bureau shall
4also present its annual report to the Illinois Power Agency in
5order to inform its ongoing equity and compliance efforts in
6the clean energy sector.
7    The Bureau and all entities subject to the requirements of
8subsection (d) shall hold an annual workshop open to the
9public in 2022 and every year thereafter on the state of racial
10and gender workforce diversity in the clean energy sector in
11order to collaboratively seek solutions to structural
12impediments to achieving diversity, equity, and inclusion
13goals, including testimony from each participating entity,
14subject matter experts, and advocates.
15    (g) The Bureau shall publish each annual report prepared
16and filed pursuant to subsection (d) on the Department of
17Labor's website for at least 5 years.
18(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
19revised 10-22-20.)
 
20    (20 ILCS 1505/1505-220 new)
21    Sec. 1505-220. Small Clean Energy Contractor Prevailing
22Wage Act Assistance. The General Assembly finds that small
23clean energy businesses, especially those in or serving
24underserved or historically disinvested communities, need
25assistance and resources to help them comply with the

 

 

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1Prevailing Wage Act. Therefore, the Department of Labor shall
2develop and administer a statewide program to assist small
3clean energy contractors in administering and complying with
4the Prevailing Wage Act requirements. This Program shall
5provide training and ongoing technical assistance pertaining
6to compliance with the Prevailing Wage Act, including
7certified payroll reporting requirements. Ongoing assistance
8shall include, but is not limited to, answering contractor
9questions, recommending tools and process improvements,
10establishing an account with and utilizing the Certified
11Transcript of Payroll Portal, building administrative
12expertise within individual businesses, and any other
13assistance businesses identify as needed based on verbal or
14other input. All Program training, technical assistance,
15materials, services, and systems shall be structured to
16accommodate and address real-world circumstances encountered
17by small clean energy contractors; shall be developed,
18refined, and adjusted as necessary in consultation with such
19contractors; and shall be administered to serve businesses
20that operate in languages other than English and do so at a
21level of service equivalent to that offered to businesses that
22operate in English. The Department may enter into agreements
23with entities with experience in supporting small businesses
24in underserved or historically disinvested communities to
25implement portions or all of the program, ensuring such
26capacity is developed in northern, central, and southern

 

 

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1Illinois regions. The Department shall communicate and market
2program services to small clean energy contractors statewide,
3and may do so in coordination with the Department of Commerce
4and Economic Opportunity.
 
5    Section 90-25. The Energy Efficient Building Act is
6amended by changing Sections 10, 15, 20, 30, 40, and 45 and by
7adding Section 55 as follows:
 
8    (20 ILCS 3125/10)
9    Sec. 10. Definitions.
10    "Board" means the Capital Development Board.
11    "Building" includes both residential buildings and
12commercial buildings.
13    "Code" means the latest published edition of the
14International Code Council's International Energy Conservation
15Code as adopted by the Board, including any published
16supplements adopted by the Board and any amendments and
17adaptations to the Code that are made by the Board.
18    "Commercial building" means any building except a building
19that is a residential building, as defined in this Section.
20    "Department" means the Department of Commerce and Economic
21Opportunity.
22    "Municipality" means any city, village, or incorporated
23town.
24    "Residential building" means (i) a detached one-family or

 

 

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12-family dwelling or (ii) any building that is 3 stories or
2less in height above grade that contains multiple dwelling
3units, in which the occupants reside on a primarily permanent
4basis, such as a townhouse, a row house, an apartment house, a
5convent, a monastery, a rectory, a fraternity or sorority
6house, a dormitory, and a rooming house; provided, however,
7that when applied to a building located within the boundaries
8of a municipality having a population of 1,000,000 or more,
9the term "residential building" means a building containing
10one or more dwelling units, not exceeding 4 stories above
11grade, where occupants are primarily permanent.
12    "Site energy index" means a scalar published by the
13Pacific Northwest National Laboratories representing the ratio
14of the site energy performance of an evaluated code compared
15to the site energy performance of the 2006 International
16Energy Conservation Code. A "site energy index" includes only
17conservation measures and excludes net energy credit for any
18on-site or off-site energy production.
19(Source: P.A. 101-144, eff. 7-26-19.)
 
20    (20 ILCS 3125/15)
21    Sec. 15. Energy Efficient Building Code. The Board, in
22consultation with the Department, shall adopt the Code as
23minimum requirements for commercial buildings, applying to the
24construction of, renovations to, and additions to all
25commercial buildings in the State. The Board, in consultation

 

 

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1with the Department, shall also adopt the Code as the minimum
2and maximum requirements for residential buildings, applying
3to the construction of, renovations to, and additions to all
4residential buildings in the State, except as provided for in
5Section 45 of this Act. The Board may appropriately adapt the
6International Energy Conservation Code to apply to the
7particular economy, population distribution, geography, and
8climate of the State and construction therein, consistent with
9the public policy objectives of this Act.
10(Source: P.A. 96-778, eff. 8-28-09.)
 
11    (20 ILCS 3125/20)
12    Sec. 20. Applicability.
13    (a) The Board shall review and adopt the Code within one
14year after its publication. The Code shall take effect within
156 months after it is adopted by the Board, except that,
16beginning January 1, 2012, the Code adopted in 2012 shall take
17effect on January 1, 2013. Except as otherwise provided in
18this Act, the Code shall apply to (i) any new building or
19structure in this State for which a building permit
20application is received by a municipality or county and (ii)
21beginning on the effective date of this amendatory Act of the
22100th General Assembly, each State facility specified in
23Section 4.01 of the Capital Development Board Act. In the case
24of any addition, alteration, renovation, or repair to an
25existing residential or commercial structure, the Code adopted

 

 

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1under this Act applies only to the portions of that structure
2that are being added, altered, renovated, or repaired. The
3changes made to this Section by this amendatory Act of the 97th
4General Assembly shall in no way invalidate or otherwise
5affect contracts entered into on or before the effective date
6of this amendatory Act of the 97th General Assembly.
7    (b) The following buildings shall be exempt from the Code:
8        (1) Buildings otherwise exempt from the provisions of
9    a locally adopted building code and buildings that do not
10    contain a conditioned space.
11        (2) Buildings that do not use either electricity or
12    fossil fuel for comfort conditioning. For purposes of
13    determining whether this exemption applies, a building
14    will be presumed to be heated by electricity, even in the
15    absence of equipment used for electric comfort heating,
16    whenever the building is provided with electrical service
17    in excess of 100 amps, unless the code enforcement
18    official determines that this electrical service is
19    necessary for purposes other than providing electric
20    comfort heating.
21        (3) Historic buildings. This exemption shall apply to
22    those buildings that are listed on the National Register
23    of Historic Places or the Illinois Register of Historic
24    Places, and to those buildings that have been designated
25    as historically significant by a local governing body that
26    is authorized to make such designations.

 

 

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1        (4) (Blank).
2        (5) Other buildings specified as exempt by the
3    International Energy Conservation Code.
4    (c) Additions, alterations, renovations, or repairs to an
5existing building, building system, or portion thereof shall
6conform to the provisions of the Code as they relate to new
7construction without requiring the unaltered portion of the
8existing building or building system to comply with the Code.
9The following need not comply with the Code, provided that the
10energy use of the building is not increased: (i) storm windows
11installed over existing fenestration, (ii) glass-only
12replacements in an existing sash and frame, (iii) existing
13ceiling, wall, or floor cavities exposed during construction,
14provided that these cavities are filled with insulation, and
15(iv) construction where the existing roof, wall, or floor is
16not exposed.
17    (d) A unit of local government that does not regulate
18energy efficient building standards is not required to adopt,
19enforce, or administer the Code; however, any energy efficient
20building standards adopted by a unit of local government must
21comply with this Act. If a unit of local government does not
22regulate energy efficient building standards, any
23construction, renovation, or addition to buildings or
24structures is subject to the provisions contained in this Act.
25(Source: P.A. 100-729, eff. 8-3-18.)
 

 

 

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1    (20 ILCS 3125/30)
2    Sec. 30. Enforcement. The Board, in consultation with the
3Department, shall determine procedures for compliance with the
4Code. These procedures may include but need not be limited to
5certification by a national, State, or local accredited energy
6conservation program or inspections from private
7Code-certified inspectors using the Code. For purposes of the
8Illinois Stretch Energy Code under Section 55, the Board shall
9allow and encourage, as an alternative compliance mechanism,
10project certification by a nationally recognized nonprofit
11certification organization specializing in high-performance
12passive buildings and offering climate-specific building
13energy standards that require equal or better energy
14performance than the Illinois Stretch Energy Code.
15(Source: P.A. 93-936, eff. 8-13-04.)
 
16    (20 ILCS 3125/40)
17    Sec. 40. Input from interested parties. When developing
18Code adaptations, rules, and procedures for compliance with
19the Code, the Capital Development Board shall seek input from
20representatives from the building trades, design
21professionals, construction professionals, code
22administrators, and other interested entities affected. Any
23board or group that the Capital Development Board seeks input
24from must include the following:
25    (i) a representative from a group that represents

 

 

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1environmental justice;
2    (ii) a representative of a nonprofit or professional
3association advocating for the environment;
4    (iii) an energy-efficiency advocate with technical
5expertise in single-family residential buildings;
6    (iv) an energy-efficiency advocate with technical
7expertise in commercial buildings; and
8    (v) an energy-efficiency advocate with technical expertise
9in multifamily buildings, such as an affordable housing
10developer.
11(Source: P.A. 99-639, eff. 7-28-16.)
 
12    (20 ILCS 3125/45)
13    Sec. 45. Home rule.
14    (a) (Blank). No unit of local government, including any
15home rule unit, may regulate energy efficient building
16standards for commercial buildings in a manner that is less
17stringent than the provisions contained in this Act.
18    (b) No unit of local government, including any home rule
19unit, may regulate energy efficient building standards for
20residential buildings in a manner that is either less or more
21stringent than the standards established pursuant to this Act;
22provided, however, that the following entities may regulate
23energy efficient building standards for residential or
24commercial buildings in a manner that is more stringent than
25the provisions contained in this Act: (i) a unit of local

 

 

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1government, including a home rule unit, that has, on or before
2May 15, 2009, adopted or incorporated by reference energy
3efficient building standards for residential or commercial
4buildings that are equivalent to or more stringent than the
52006 International Energy Conservation Code, (ii) a unit of
6local government, including a home rule unit, that has, on or
7before May 15, 2009, provided to the Capital Development
8Board, as required by Section 10.18 of the Capital Development
9Board Act, an identification of an energy efficient building
10code or amendment that is equivalent to or more stringent than
11the 2006 International Energy Conservation Code, (ii-5) a
12municipality that has adopted the Illinois Stretch Energy
13Code, and (iii) a municipality with a population of 1,000,000
14or more.
15    (c) No unit of local government, including any home rule
16unit or unit of local government that is subject to State
17regulation under the Code as provided in Section 15 of this
18Act, may hereafter enact any annexation ordinance or
19resolution, or require or enter into any annexation agreement,
20that imposes energy efficient building standards for
21residential or commercial buildings that are either less or
22more stringent than the energy efficiency standards in effect,
23at the time of construction, throughout the unit of local
24government, except for the Illinois Stretch Energy Code.
25    (d) This Section is a denial and limitation of home rule
26powers and functions under subsection (i) of Section 6 of

 

 

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1Article VII of the Illinois Constitution on the concurrent
2exercise by home rule units of powers and functions exercised
3by the State. Nothing in this Section, however, prevents a
4unit of local government from adopting an energy efficiency
5code or standards for commercial buildings that are more
6stringent than the Code under this Act.
7    (e) A unit of local government requiring the Illinois
8Stretch Energy Code must do so with the adoption of the Code by
9its governing body.
10(Source: P.A. 99-639, eff. 7-28-16.)
 
11    (20 ILCS 3125/55 new)
12    Sec. 55. Illinois Stretch Energy Code.
13    (a) The Board, in consultation with the Department, shall
14create and adopt the Illinois Stretch Energy Code, to allow
15municipalities and projects authorized or funded by the Board
16to achieve more energy efficiency in buildings than the
17Illinois Energy Conservation Code through a consistent pathway
18across the State. The Illinois Stretch Energy Code shall be
19available for adoption by any municipality and shall set
20minimum energy efficiency requirements, taking the place of
21the Illinois Energy Conservation Code within any municipality
22that adopts the Illinois Stretch Energy Code.
23    (b) The Illinois Stretch Energy Code shall have separate
24components for commercial and residential buildings, which may
25be adopted by the municipality jointly or separately.

 

 

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1    (c) The Illinois Stretch Energy Code shall apply to all
2projects to which an energy conservation code is applicable
3that are authorized or funded in any part by the Board after
4January 1, 2024.
5    (d) Development of the Illinois Stretch Energy Code shall
6be completed and available for adoption by municipalities by
7December 31, 2023.
8    (e) Consistent with the requirements under paragraph (2.5)
9of subsection (g) of Section 8-103B of the Public Utilities
10Act and under paragraph (2) of subsection (j) of Section 8-104
11of the Public Utilities Act, municipalities may adopt the
12Illinois Stretch Energy Code and may use utility programs to
13support compliance with the Illinois Stretch Energy Code. The
14amount of savings from such utility efforts that may be
15counted toward achievement of their annual savings goals shall
16be based on reasonable estimates of the increase in savings
17resulting from the utility efforts, relative to reasonable
18approximations of what would have occurred absent the utility
19involvement.
20    (f) The Illinois Stretch Energy Code's residential
21components shall:
22        (1) apply to residential buildings as defined under
23    Section 10;
24        (2) set performance targets using a site energy index
25    with reductions relative to the 2006 International Energy
26    Conservation Code; and

 

 

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1        (3) include stretch energy codes with site energy
2    index standards and adoption dates as follows: by no later
3    than December 31, 2023, the Board shall create and adopt a
4    stretch energy code with a site energy index no greater
5    than 0.50 of the 2006 International Energy Conservation
6    Code; by no later than December 31, 2025, the Board shall
7    create and adopt a stretch energy code with a site energy
8    index no greater than 0.40 of the 2006 International
9    Energy Conservation Code, unless the Board identifies
10    unanticipated burdens associated with the stretch energy
11    code adopted in 2023, in which case the Board may adopt a
12    stretch energy code with a site energy index no greater
13    than 0.42 of the 2006 International Energy Conservation
14    Code, provided that the more relaxed standard has a site
15    energy index that is at least 0.05 more restrictive than
16    the 2024 International Energy Conservation Code; by no
17    later than December 31, 2028, the Board shall create and
18    adopt a stretch energy code with a site energy index no
19    greater than 0.33 of the 2006 International Energy
20    Conservation Code, unless the Board identifies
21    unanticipated burdens associated with the stretch energy
22    code adopted in 2025, in which case the Board may adopt a
23    stretch energy code with a site energy index no greater
24    than 0.35 of the 2006 International Energy Conservation
25    Code, but only if that more relaxed standard has a site
26    energy index that is at least 0.05 more restrictive than

 

 

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1    the 2027 International Energy Conservation Code; and by no
2    later than December 31, 2031, the Board shall create and
3    adopt a stretch energy code with a site energy index no
4    greater than 0.25 of the 2006 International Energy
5    Conservation Code.
6    (g) The Illinois Stretch Energy Code's commercial
7components shall:
8        (1) apply to commercial buildings as defined under
9    Section 10;
10        (2) set performance targets using a site energy index
11    with reductions relative to the 2006 International Energy
12    Conservation Code; and
13        (3) include stretch energy codes with site energy
14    index standards and adoption dates as follows: by no later
15    than December 31, 2023, the Board shall create and adopt a
16    stretch energy code with a site energy index no greater
17    than 0.60 of the 2006 International Energy Conservation
18    Code; by no later than December 31, 2025, the Board shall
19    create and adopt a stretch energy code with a site energy
20    index no greater than 0.50 of the 2006 International
21    Energy Conservation Code; by no later than December 31,
22    2028, the Board shall create and adopt a stretch energy
23    code with a site energy index no greater than 0.44 of the
24    2006 International Energy Conservation Code; and by no
25    later than December 31, 2031, the Board shall create and
26    adopt a stretch energy code with a site energy index no

 

 

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1    greater than 0.39 of the 2006 International Energy
2    Conservation Code.
3    (h) The process for the creation of the Illinois Stretch
4Energy Code includes:
5        (1) within 60 days after the effective date of this
6    amendatory Act of the 102nd General Assembly, the Capital
7    Development Board shall meet with the Illinois Energy Code
8    Advisory Council to advise and provide technical
9    assistance and recommendations to the Capital Development
10    Board for the Illinois Stretch Energy Code, which shall:
11            (A) advise the Capital Development Board on
12        creation of interim performance targets, code
13        requirements, and an implementation plan for the
14        Illinois Stretch Energy Code;
15            (B) recommend amendments to proposed rules issued
16        by the Capital Development Board;
17            (C) recommend complementary programs or policies;
18            (D) complete recommendations and development for
19        the Illinois Stretch Energy Code elements and
20        requirements by July 31, 2023;
21        (2) As part of its deliberations, the Illinois Energy
22    Code Advisory Council shall actively solicit input from
23    other energy code stakeholders and interested parties.
 
24    Section 90-30. The Illinois Power Agency Act is amended by
25changing Sections 1-5, 1-10, 1-20, 1-35, 1-56, 1-70, 1-75,

 

 

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11-92, and 1-125 and by adding Section 1-128 as follows:
 
2    (20 ILCS 3855/1-5)
3    Sec. 1-5. Legislative declarations and findings. The
4General Assembly finds and declares:
5        (1) The health, welfare, and prosperity of all
6    Illinois residents citizens require the provision of
7    adequate, reliable, affordable, efficient, and
8    environmentally sustainable electric service at the lowest
9    total cost over time, taking into account any benefits of
10    price stability.
11        (1.5) To provide the highest quality of life for the
12    residents of Illinois and to provide for a clean and
13    healthy environment, it is the policy of this State to
14    rapidly transition to 100% clean energy by 2050.
15        (2) (Blank).
16        (3) (Blank).
17        (4) It is necessary to improve the process of
18    procuring electricity to serve Illinois residents, to
19    promote investment in energy efficiency and
20    demand-response measures, and to maintain and support
21    development of clean coal technologies, generation
22    resources that operate at all hours of the day and under
23    all weather conditions, zero emission facilities, and
24    renewable resources.
25        (5) Procuring a diverse electricity supply portfolio

 

 

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1    will ensure the lowest total cost over time for adequate,
2    reliable, efficient, and environmentally sustainable
3    electric service.
4        (6) Including renewable resources and zero emission
5    credits from zero emission facilities in that portfolio
6    will reduce long-term direct and indirect costs to
7    consumers by decreasing environmental impacts and by
8    avoiding or delaying the need for new generation,
9    transmission, and distribution infrastructure. Developing
10    new renewable energy resources in Illinois, including
11    brownfield solar projects and community solar projects,
12    will help to diversify Illinois electricity supply, avoid
13    and reduce pollution, reduce peak demand, and enhance
14    public health and well-being of Illinois residents.
15        (7) Developing community solar projects in Illinois
16    will help to expand access to renewable energy resources
17    to more Illinois residents.
18        (8) Developing brownfield solar projects in Illinois
19    will help return blighted or contaminated land to
20    productive use while enhancing public health and the
21    well-being of Illinois residents, including those in
22    environmental justice communities.
23        (9) Energy efficiency, demand-response measures, zero
24    emission energy, and renewable energy are resources
25    currently underused in Illinois. These resources should be
26    used, when cost effective, to reduce costs to consumers,

 

 

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1    improve reliability, and improve environmental quality and
2    public health.
3        (10) The State should encourage the use of advanced
4    clean coal technologies that capture and sequester carbon
5    dioxide emissions to advance environmental protection
6    goals and to demonstrate the viability of coal and
7    coal-derived fuels in a carbon-constrained economy.
8        (10.5) The State should encourage the development of
9    interregional high voltage direct current (HVDC)
10    transmission lines that benefit Illinois. All ratepayers
11    in the State served by the regional transmission
12    organization where the HVDC converter station is
13    interconnected benefit from the long-term price stability
14    and market access provided by interregional HVDC
15    transmission facilities. The benefits to Illinois include:
16    reduction in wholesale power prices; access to lower-cost
17    markets; enabling the integration of additional renewable
18    generating units within the State through near
19    instantaneous dispatchability and the provision of
20    ancillary services; creating good-paying union jobs in
21    Illinois; and, enhancing grid reliability and climate
22    resilience via HVDC facilities that are installed
23    underground.
24        (10.6) The health, welfare, and safety of the people
25    of the State are advanced by developing new HVDC
26    transmission lines predominantly along transportation

 

 

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1    rights-of-way, with an HVDC converter station that is
2    located in the service territory of a public utility as
3    defined in Section 3-105 of the Public Utilities Act
4    serving more than 3,000,000 retail customers, and with a
5    project labor agreement as defined in Section 1-10 of this
6    Act.
7        (11) The General Assembly enacted Public Act 96-0795
8    to reform the State's purchasing processes, recognizing
9    that government procurement is susceptible to abuse if
10    structural and procedural safeguards are not in place to
11    ensure independence, insulation, oversight, and
12    transparency.
13        (12) The principles that underlie the procurement
14    reform legislation apply also in the context of power
15    purchasing.
16        (13) To ensure that the benefits of installing
17    renewable resources are available to all Illinois
18    residents and located across the State, subject to
19    appropriation, it is necessary for the Agency to provide
20    public information and educational resources on how
21    residents can benefit from the expansion of renewable
22    energy in Illinois and participate in the Illinois Solar
23    for All Program established in Section 1-56, the
24    Adjustable Block program established in Section 1-75, the
25    job training programs established by paragraph (1) of
26    subsection (a) of Section 16-108.12 of the Public

 

 

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1    Utilities Act, and the programs and resources established
2    by the Energy Transition Act.
3    The General Assembly therefore finds that it is necessary
4to create the Illinois Power Agency and that the goals and
5objectives of that Agency are to accomplish each of the
6following:
7        (A) Develop electricity procurement plans to ensure
8    adequate, reliable, affordable, efficient, and
9    environmentally sustainable electric service at the lowest
10    total cost over time, taking into account any benefits of
11    price stability, for electric utilities that on December
12    31, 2005 provided electric service to at least 100,000
13    customers in Illinois and for small multi-jurisdictional
14    electric utilities that (i) on December 31, 2005 served
15    less than 100,000 customers in Illinois and (ii) request a
16    procurement plan for their Illinois jurisdictional load.
17    The procurement plan shall be updated on an annual basis
18    and shall include renewable energy resources and,
19    beginning with the delivery year commencing June 1, 2017,
20    zero emission credits from zero emission facilities
21    sufficient to achieve the standards specified in this Act.
22        (B) Conduct the competitive procurement processes
23    identified in this Act.
24        (C) Develop electric generation and co-generation
25    facilities that use indigenous coal or renewable
26    resources, or both, financed with bonds issued by the

 

 

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1    Illinois Finance Authority.
2        (D) Supply electricity from the Agency's facilities at
3    cost to one or more of the following: municipal electric
4    systems, governmental aggregators, or rural electric
5    cooperatives in Illinois.
6        (E) Ensure that the process of power procurement is
7    conducted in an ethical and transparent fashion, immune
8    from improper influence.
9        (F) Continue to review its policies and practices to
10    determine how best to meet its mission of providing the
11    lowest cost power to the greatest number of people, at any
12    given point in time, in accordance with applicable law.
13        (G) Operate in a structurally insulated, independent,
14    and transparent fashion so that nothing impedes the
15    Agency's mission to secure power at the best prices the
16    market will bear, provided that the Agency meets all
17    applicable legal requirements.
18        (H) Implement renewable energy procurement and
19    training programs throughout the State to diversify
20    Illinois electricity supply, improve reliability, avoid
21    and reduce pollution, reduce peak demand, and enhance
22    public health and well-being of Illinois residents,
23    including low-income residents.
24(Source: P.A. 99-906, eff. 6-1-17.)
 
25    (20 ILCS 3855/1-10)

 

 

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1    Sec. 1-10. Definitions.
2    "Agency" means the Illinois Power Agency.
3    "Agency loan agreement" means any agreement pursuant to
4which the Illinois Finance Authority agrees to loan the
5proceeds of revenue bonds issued with respect to a project to
6the Agency upon terms providing for loan repayment
7installments at least sufficient to pay when due all principal
8of, interest and premium, if any, on those revenue bonds, and
9providing for maintenance, insurance, and other matters in
10respect of the project.
11    "Authority" means the Illinois Finance Authority.
12    "Brownfield site photovoltaic project" means photovoltaics
13that are either:
14        (1) interconnected to an electric utility as defined
15    in this Section, a municipal utility as defined in this
16    Section, a public utility as defined in Section 3-105 of
17    the Public Utilities Act, or an electric cooperative, as
18    defined in Section 3-119 of the Public Utilities Act; and
19    (2) located at a site that is regulated by any of the
20    following entities under the following programs:
21            (A) the United States Environmental Protection
22        Agency under the federal Comprehensive Environmental
23        Response, Compensation, and Liability Act of 1980, as
24        amended;
25            (B) the United States Environmental Protection
26        Agency under the Corrective Action Program of the

 

 

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1        federal Resource Conservation and Recovery Act, as
2        amended;
3            (C) the Illinois Environmental Protection Agency
4        under the Illinois Site Remediation Program; or
5            (D) the Illinois Environmental Protection Agency
6        under the Illinois Solid Waste Program; or .
7        (2) located at the site of a coal mine that has
8    permanently ceased coal production, permanently halted any
9    re-mining operations, and is no longer accepting any coal
10    combustion residues; has both completed all clean-up and
11    remediation obligations under the federal Surface Mining
12    and Reclamation Act of 1977 and all applicable Illinois
13    rules and any other clean-up, remediation, or ongoing
14    monitoring to safeguard the health and well-being of the
15    people of the State of Illinois, as well as demonstrated
16    compliance with all applicable federal and State
17    environmental rules and regulations, including, but not
18    limited, to 35 Ill. Adm. Code Part 845 and any rules for
19    historic fill of coal combustion residuals, including any
20    rules finalized in Subdocket A of Illinois Pollution
21    Control Board docket R2020-019.
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    "Clean energy" means energy generation that is 90% or
25greater free of carbon dioxide emissions.
26    "Commission" means the Illinois Commerce Commission.

 

 

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

 

 

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

 

 

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

 

 

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1given end use. "Energy efficiency" includes voltage
2optimization measures that optimize the voltage at points on
3the electric distribution voltage system and thereby reduce
4electricity consumption by electric customers' end use
5devices. "Energy efficiency" also includes measures that
6reduce the total Btus of electricity, natural gas, and other
7fuels needed to meet the end use or uses.
8    "Electric utility" has the same definition as found in
9Section 16-102 of the Public Utilities Act.
10    "Equity investment eligible community" or "eligible
11community" are synonymous and mean the geographic areas
12throughout Illinois which would most benefit from equitable
13investments by the State designed to combat discrimination.
14Specifically, the eligible communities shall be defined as the
15following areas:
16        (1) R3 Areas as established pursuant to Section 10-40
17    of the Cannabis Regulation and Tax Act, where residents
18    have historically been excluded from economic
19    opportunities, including opportunities in the energy
20    sector; and
21        (2) Environmental justice communities, as defined by
22    the Illinois Power Agency pursuant to the Illinois Power
23    Agency Act, where residents have historically been subject
24    to disproportionate burdens of pollution, including
25    pollution from the energy sector.
26    "Equity eligible persons" or "eligible persons" means

 

 

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1persons who would most benefit from equitable investments by
2the State designed to combat discrimination, specifically:
3        (1) persons who graduate from or are current or former
4    participants in the Clean Jobs Workforce Network Program,
5    the Clean Energy Contractor Incubator Program, the
6    Illinois Climate Works Preapprenticeship Program,
7    Returning Residents Clean Jobs Training Program, or the
8    Clean Energy Primes Contractor Accelerator Program, and
9    the solar training pipeline and multi-cultural jobs
10    program created in paragraphs (a)(1) and (a)(3) of Section
11    16-108.21 of the Public Utilities Act;
12        (2) persons who are graduates of or currently enrolled
13    in the foster care system;
14        (3) persons who were formerly incarcerated;
15        (4) persons whose primary residence is in an equity
16    investment eligible community.
17    "Equity eligible contractor" means a business that is
18majority-owned by eligible persons, or a nonprofit or
19cooperative that is majority-governed by eligible persons, or
20is a natural person that is an eligible person offering
21personal services as an independent contractor.
22    "Facility" means an electric generating unit or a
23co-generating unit that produces electricity along with
24related equipment necessary to connect the facility to an
25electric transmission or distribution system.
26    "General Contractor" means the entity or organization with

 

 

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1main responsibility for the building of a construction project
2and who is the party signing the prime construction contract
3for the project.
4    "Governmental aggregator" means one or more units of local
5government that individually or collectively procure
6electricity to serve residential retail electrical loads
7located within its or their jurisdiction.
8    "High voltage direct current converter station" means the
9collection of equipment that converts direct current energy
10from a high voltage direct current transmission line into
11alternating current using Voltage Source Conversion technology
12and that is interconnected with transmission or distribution
13assets located in Illinois.
14    "High voltage direct current renewable energy credit"
15means a renewable energy credit associated with a renewable
16energy resource where the renewable energy resource has
17entered into a contract to transmit the energy associated with
18such renewable energy credit over high voltage direct current
19transmission facilities.
20    "High voltage direct current transmission facilities"
21means the collection of installed equipment that converts
22alternating current energy in one location to direct current
23and transmits that direct current energy to a high voltage
24direct current converter station using Voltage Source
25Conversion technology. "High voltage direct current
26transmission facilities" includes the high voltage direct

 

 

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1current converter station itself and associated high voltage
2direct current transmission lines. Notwithstanding the
3preceding, after the effective date of this amendatory Act of
4the 102nd General Assembly, an otherwise qualifying collection
5of equipment does not qualify as high voltage direct current
6transmission facilities unless its developer entered into a
7project labor agreement, is capable of transmitting
8electricity at 525kv with an Illinois converter station
9located and interconnected in the region of the PJM
10Interconnection, LLC, and the system does not operate as a
11public utility, as that term is defined in Section 3-105 of the
12Public Utilities Act.
13    "Index price" means the real-time energy settlement price
14at the applicable Illinois trading hub, such as PJM-NIHUB or
15MISO-IL, for a given settlement period.
16    "Indexed renewable energy credit" means a tradable credit
17that represents the environmental attributes of one megawatt
18hour of energy produced from a renewable energy resource, the
19price of which shall be calculated by subtracting the strike
20price offered by a new utility-scale wind project or a new
21utility-scale photovoltaic project from the index price in a
22given settlement period.
23    "Indexed renewable energy credit counterparty" has the
24same meaning as "public utility" as defined in Section 3-105
25of the Public Utilities Act.
26    "Local government" means a unit of local government as

 

 

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1defined in Section 1 of Article VII of the Illinois
2Constitution.
3    "Municipality" means a city, village, or incorporated
4town.
5    "Municipal utility" means a public utility owned and
6operated by any subdivision or municipal corporation of this
7State.
8    "Nameplate capacity" means the aggregate inverter
9nameplate capacity in kilowatts AC.
10    "Person" means any natural person, firm, partnership,
11corporation, either domestic or foreign, company, association,
12limited liability company, joint stock company, or association
13and includes any trustee, receiver, assignee, or personal
14representative thereof.
15    "Project" means the planning, bidding, and construction of
16a facility.
17    "Project labor agreement" means a pre-hire collective
18bargaining agreement that covers all terms and conditions of
19employment on a specific construction project and must include
20the following:
21        (1) provisions establishing the minimum hourly wage
22    for each class of labor organization employee;
23        (2) provisions establishing the benefits and other
24    compensation for each class of labor organization
25    employee;
26        (3) provisions establishing that no strike or disputes

 

 

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1    will be engaged in by the labor organization employees;
2        (4) provisions establishing that no lockout or
3    disputes will be engaged in by the general contractor
4    building the project; and
5        (5) provisions for minorities and women, as defined
6    under the Business Enterprise for Minorities, Women, and
7    Persons with Disabilities Act, setting forth goals for
8    apprenticeship hours to be performed by minorities and
9    women and setting forth goals for total hours to be
10    performed by underrepresented minorities and women.
11    A labor organization and the general contractor building
12the project shall have the authority to include other terms
13and conditions as they deem necessary.
14    "Public utility" has the same definition as found in
15Section 3-105 of the Public Utilities Act.
16    "Qualified combined heat and power systems" means systems
17that, either simultaneously or sequentially, produce
18electricity and useful thermal energy from a single fuel
19source. Such systems are eligible for "renewable energy
20credits" in an amount equal to its total energy output where a
21renewable fuel is consumed or in an amount equal to the net
22reduction in nonrenewable fuel consumed on a total energy
23output basis.
24    "Real property" means any interest in land together with
25all structures, fixtures, and improvements thereon, including
26lands under water and riparian rights, any easements,

 

 

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1covenants, licenses, leases, rights-of-way, uses, and other
2interests, together with any liens, judgments, mortgages, or
3other claims or security interests related to real property.
4    "Renewable energy credit" means a tradable credit that
5represents the environmental attributes of one megawatt hour
6of energy produced from a renewable energy resource.
7    "Renewable energy resources" includes energy and its
8associated renewable energy credit or renewable energy credits
9from wind, solar thermal energy, photovoltaic cells and
10panels, biodiesel, anaerobic digestion, crops and untreated
11and unadulterated organic waste biomass, tree waste, and
12hydropower that does not involve new construction or
13significant expansion of hydropower dams, waste heat to power
14systems, or qualified combined heat and power systems. For
15purposes of this Act, landfill gas produced in the State is
16considered a renewable energy resource. "Renewable energy
17resources" does not include the incineration or burning of
18tires, garbage, general household, institutional, and
19commercial waste, industrial lunchroom or office waste,
20landscape waste other than tree waste, railroad crossties,
21utility poles, or construction or demolition debris, other
22than untreated and unadulterated waste wood. "Renewable energy
23resources" also includes high voltage direct current renewable
24energy credits and the associated energy converted to
25alternating current by a high voltage direct current converter
26station to the extent that: (1) the generator of such

 

 

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1renewable energy resource contracted with a third party to
2transmit the energy over the high voltage direct current
3transmission facilities, and (2) the third-party contracting
4for delivery of renewable energy resources over the high
5voltage direct current transmission facilities have ownership
6rights over the unretired associated high voltage direct
7current renewable energy credit.
8    "Retail customer" has the same definition as found in
9Section 16-102 of the Public Utilities Act.
10    "Revenue bond" means any bond, note, or other evidence of
11indebtedness issued by the Authority, the principal and
12interest of which is payable solely from revenues or income
13derived from any project or activity of the Agency.
14    "Sequester" means permanent storage of carbon dioxide by
15injecting it into a saline aquifer, a depleted gas reservoir,
16or an oil reservoir, directly or through an enhanced oil
17recovery process that may involve intermediate storage,
18regardless of whether these activities are conducted by a
19clean coal facility, a clean coal SNG facility, a clean coal
20SNG brownfield facility, or a party with which a clean coal
21facility, clean coal SNG facility, or clean coal SNG
22brownfield facility has contracted for such purposes.
23    "Service area" has the same definition as found in Section
2416-102 of the Public Utilities Act.
25    "Settlement period" means the period of time utilized by
26MISO and PJM and their successor organizations as the basis

 

 

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1for settlement calculations in the real-time energy market.
2    "Sourcing agreement" means (i) in the case of an electric
3utility, an agreement between the owner of a clean coal
4facility and such electric utility, which agreement shall have
5terms and conditions meeting the requirements of paragraph (3)
6of subsection (d) of Section 1-75, (ii) in the case of an
7alternative retail electric supplier, an agreement between the
8owner of a clean coal facility and such alternative retail
9electric supplier, which agreement shall have terms and
10conditions meeting the requirements of Section 16-115(d)(5) of
11the Public Utilities Act, and (iii) in case of a gas utility,
12an agreement between the owner of a clean coal SNG brownfield
13facility and the gas utility, which agreement shall have the
14terms and conditions meeting the requirements of subsection
15(h-1) of Section 9-220 of the Public Utilities Act.
16    "Strike price" means a contract price for energy and
17renewable energy credits from a new utility-scale wind project
18or a new utility-scale photovoltaic project.
19    "Subscriber" means a person who (i) takes delivery service
20from an electric utility, and (ii) has a subscription of no
21less than 200 watts to a community renewable generation
22project that is located in the electric utility's service
23area. No subscriber's subscriptions may total more than 40% of
24the nameplate capacity of an individual community renewable
25generation project. Entities that are affiliated by virtue of
26a common parent shall not represent multiple subscriptions

 

 

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1that total more than 40% of the nameplate capacity of an
2individual community renewable generation project.
3    "Subscription" means an interest in a community renewable
4generation project expressed in kilowatts, which is sized
5primarily to offset part or all of the subscriber's
6electricity usage.
7    "Substitute natural gas" or "SNG" means a gas manufactured
8by gasification of hydrocarbon feedstock, which is
9substantially interchangeable in use and distribution with
10conventional natural gas.
11    "Total resource cost test" or "TRC test" means a standard
12that is met if, for an investment in energy efficiency or
13demand-response measures, the benefit-cost ratio is greater
14than one. The benefit-cost ratio is the ratio of the net
15present value of the total benefits of the program to the net
16present value of the total costs as calculated over the
17lifetime of the measures. A total resource cost test compares
18the sum of avoided electric utility costs, representing the
19benefits that accrue to the system and the participant in the
20delivery of those efficiency measures and including avoided
21costs associated with reduced use of natural gas or other
22fuels, avoided costs associated with reduced water
23consumption, and avoided costs associated with reduced
24operation and maintenance costs, as well as other quantifiable
25societal benefits, to the sum of all incremental costs of
26end-use measures that are implemented due to the program

 

 

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1(including both utility and participant contributions), plus
2costs to administer, deliver, and evaluate each demand-side
3program, to quantify the net savings obtained by substituting
4the demand-side program for supply resources. In calculating
5avoided costs of power and energy that an electric utility
6would otherwise have had to acquire, reasonable estimates
7shall be included of financial costs likely to be imposed by
8future regulations and legislation on emissions of greenhouse
9gases. In discounting future societal costs and benefits for
10the purpose of calculating net present values, a societal
11discount rate based on actual, long-term Treasury bond yields
12should be used. Notwithstanding anything to the contrary, the
13TRC test shall not include or take into account a calculation
14of market price suppression effects or demand reduction
15induced price effects.
16    "Utility-scale solar project" means an electric generating
17facility that:
18        (1) generates electricity using photovoltaic cells;
19    and
20        (2) has a nameplate capacity that is greater than
21    5,000 2,000 kilowatts.
22    "Utility-scale wind project" means an electric generating
23facility that:
24        (1) generates electricity using wind; and
25        (2) has a nameplate capacity that is greater than
26    5,000 2,000 kilowatts.

 

 

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1    "Waste Heat to Power Systems" means systems that capture
2and generate electricity from energy that would otherwise be
3lost to the atmosphere without the use of additional fuel.
4    "Zero emission credit" means a tradable credit that
5represents the environmental attributes of one megawatt hour
6of energy produced from a zero emission facility.
7    "Zero emission facility" means a facility that: (1) is
8fueled by nuclear power; and (2) is interconnected with PJM
9Interconnection, LLC or the Midcontinent Independent System
10Operator, Inc., or their successors.
11(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17.)
 
12    (20 ILCS 3855/1-20)
13    Sec. 1-20. General powers and duties of the Agency.
14    (a) The Agency is authorized to do each of the following:
15        (1) Develop electricity procurement plans to ensure
16    adequate, reliable, affordable, efficient, and
17    environmentally sustainable electric service at the lowest
18    total cost over time, taking into account any benefits of
19    price stability, for electric utilities that on December
20    31, 2005 provided electric service to at least 100,000
21    customers in Illinois and for small multi-jurisdictional
22    electric utilities that (A) on December 31, 2005 served
23    less than 100,000 customers in Illinois and (B) request a
24    procurement plan for their Illinois jurisdictional load.
25    Except as provided in paragraph (1.5) of this subsection

 

 

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1    (a), the electricity procurement plans shall be updated on
2    an annual basis and shall include electricity generated
3    from renewable resources sufficient to achieve the
4    standards specified in this Act. Beginning with the
5    delivery year commencing June 1, 2017, develop procurement
6    plans to include zero emission credits generated from zero
7    emission facilities sufficient to achieve the standards
8    specified in this Act. Beginning with the delivery year
9    commencing on June 1, 2022, the Agency is authorized to
10    develop carbon mitigation credit procurement plans to
11    include carbon mitigation credits generated from
12    carbon-free energy resources sufficient to achieve the
13    standards specified in this Act.
14        (1.5) Develop a long-term renewable resources
15    procurement plan in accordance with subsection (c) of
16    Section 1-75 of this Act for renewable energy credits in
17    amounts sufficient to achieve the standards specified in
18    this Act for delivery years commencing June 1, 2017 and
19    for the programs and renewable energy credits specified in
20    Section 1-56 of this Act. Electricity procurement plans
21    for delivery years commencing after May 31, 2017, shall
22    not include procurement of renewable energy resources.
23        (2) Conduct competitive procurement processes to
24    procure the supply resources identified in the electricity
25    procurement plan, pursuant to Section 16-111.5 of the
26    Public Utilities Act, and, for the delivery year

 

 

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1    commencing June 1, 2017, conduct procurement processes to
2    procure zero emission credits from zero emission
3    facilities, under subsection (d-5) of Section 1-75 of this
4    Act. For the delivery year commencing June 1, 2022, the
5    Agency is authorized to conduct procurement processes to
6    procure carbon mitigation credits from carbon-free energy
7    resources, under subsection (d-10) of Section 1-75 of this
8    Act.
9        (2.5) Beginning with the procurement for the 2017
10    delivery year, conduct competitive procurement processes
11    and implement programs to procure renewable energy credits
12    identified in the long-term renewable resources
13    procurement plan developed and approved under subsection
14    (c) of Section 1-75 of this Act and Section 16-111.5 of the
15    Public Utilities Act.
16        (2.10) Oversee the procurement by electric utilities
17    that served more than 300,000 customers in this State as
18    of January 1, 2019 of renewable energy credits from new
19    renewable energy facilities to be installed, along with
20    energy storage facilities, at or adjacent to the sites of
21    electric generating facilities that burned coal as their
22    primary fuel source as of January 1, 2016 in accordance
23    with subsection (c-5) of Section 1-75 of this Act.
24        (3) Develop electric generation and co-generation
25    facilities that use indigenous coal or renewable
26    resources, or both, financed with bonds issued by the

 

 

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1    Illinois Finance Authority.
2        (4) Supply electricity from the Agency's facilities at
3    cost to one or more of the following: municipal electric
4    systems, governmental aggregators, or rural electric
5    cooperatives in Illinois.
6    (b) Except as otherwise limited by this Act, the Agency
7has all of the powers necessary or convenient to carry out the
8purposes and provisions of this Act, including without
9limitation, each of the following:
10        (1) To have a corporate seal, and to alter that seal at
11    pleasure, and to use it by causing it or a facsimile to be
12    affixed or impressed or reproduced in any other manner.
13        (2) To use the services of the Illinois Finance
14    Authority necessary to carry out the Agency's purposes.
15        (3) To negotiate and enter into loan agreements and
16    other agreements with the Illinois Finance Authority.
17        (4) To obtain and employ personnel and hire
18    consultants that are necessary to fulfill the Agency's
19    purposes, and to make expenditures for that purpose within
20    the appropriations for that purpose.
21        (5) To purchase, receive, take by grant, gift, devise,
22    bequest, or otherwise, lease, or otherwise acquire, own,
23    hold, improve, employ, use, and otherwise deal in and
24    with, real or personal property whether tangible or
25    intangible, or any interest therein, within the State.
26        (6) To acquire real or personal property, whether

 

 

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1    tangible or intangible, including without limitation
2    property rights, interests in property, franchises,
3    obligations, contracts, and debt and equity securities,
4    and to do so by the exercise of the power of eminent domain
5    in accordance with Section 1-21; except that any real
6    property acquired by the exercise of the power of eminent
7    domain must be located within the State.
8        (7) To sell, convey, lease, exchange, transfer,
9    abandon, or otherwise dispose of, or mortgage, pledge, or
10    create a security interest in, any of its assets,
11    properties, or any interest therein, wherever situated.
12        (8) To purchase, take, receive, subscribe for, or
13    otherwise acquire, hold, make a tender offer for, vote,
14    employ, sell, lend, lease, exchange, transfer, or
15    otherwise dispose of, mortgage, pledge, or grant a
16    security interest in, use, and otherwise deal in and with,
17    bonds and other obligations, shares, or other securities
18    (or interests therein) issued by others, whether engaged
19    in a similar or different business or activity.
20        (9) To make and execute agreements, contracts, and
21    other instruments necessary or convenient in the exercise
22    of the powers and functions of the Agency under this Act,
23    including contracts with any person, including personal
24    service contracts, or with any local government, State
25    agency, or other entity; and all State agencies and all
26    local governments are authorized to enter into and do all

 

 

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1    things necessary to perform any such agreement, contract,
2    or other instrument with the Agency. No such agreement,
3    contract, or other instrument shall exceed 40 years.
4        (10) To lend money, invest and reinvest its funds in
5    accordance with the Public Funds Investment Act, and take
6    and hold real and personal property as security for the
7    payment of funds loaned or invested.
8        (11) To borrow money at such rate or rates of interest
9    as the Agency may determine, issue its notes, bonds, or
10    other obligations to evidence that indebtedness, and
11    secure any of its obligations by mortgage or pledge of its
12    real or personal property, machinery, equipment,
13    structures, fixtures, inventories, revenues, grants, and
14    other funds as provided or any interest therein, wherever
15    situated.
16        (12) To enter into agreements with the Illinois
17    Finance Authority to issue bonds whether or not the income
18    therefrom is exempt from federal taxation.
19        (13) To procure insurance against any loss in
20    connection with its properties or operations in such
21    amount or amounts and from such insurers, including the
22    federal government, as it may deem necessary or desirable,
23    and to pay any premiums therefor.
24        (14) To negotiate and enter into agreements with
25    trustees or receivers appointed by United States
26    bankruptcy courts or federal district courts or in other

 

 

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1    proceedings involving adjustment of debts and authorize
2    proceedings involving adjustment of debts and authorize
3    legal counsel for the Agency to appear in any such
4    proceedings.
5        (15) To file a petition under Chapter 9 of Title 11 of
6    the United States Bankruptcy Code or take other similar
7    action for the adjustment of its debts.
8        (16) To enter into management agreements for the
9    operation of any of the property or facilities owned by
10    the Agency.
11        (17) To enter into an agreement to transfer and to
12    transfer any land, facilities, fixtures, or equipment of
13    the Agency to one or more municipal electric systems,
14    governmental aggregators, or rural electric agencies or
15    cooperatives, for such consideration and upon such terms
16    as the Agency may determine to be in the best interest of
17    the residents citizens of Illinois.
18        (18) To enter upon any lands and within any building
19    whenever in its judgment it may be necessary for the
20    purpose of making surveys and examinations to accomplish
21    any purpose authorized by this Act.
22        (19) To maintain an office or offices at such place or
23    places in the State as it may determine.
24        (20) To request information, and to make any inquiry,
25    investigation, survey, or study that the Agency may deem
26    necessary to enable it effectively to carry out the

 

 

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1    provisions of this Act.
2        (21) To accept and expend appropriations.
3        (22) To engage in any activity or operation that is
4    incidental to and in furtherance of efficient operation to
5    accomplish the Agency's purposes, including hiring
6    employees that the Director deems essential for the
7    operations of the Agency.
8        (23) To adopt, revise, amend, and repeal rules with
9    respect to its operations, properties, and facilities as
10    may be necessary or convenient to carry out the purposes
11    of this Act, subject to the provisions of the Illinois
12    Administrative Procedure Act and Sections 1-22 and 1-35 of
13    this Act.
14        (24) To establish and collect charges and fees as
15    described in this Act.
16        (25) To conduct competitive gasification feedstock
17    procurement processes to procure the feedstocks for the
18    clean coal SNG brownfield facility in accordance with the
19    requirements of Section 1-78 of this Act.
20        (26) To review, revise, and approve sourcing
21    agreements and mediate and resolve disputes between gas
22    utilities and the clean coal SNG brownfield facility
23    pursuant to subsection (h-1) of Section 9-220 of the
24    Public Utilities Act.
25        (27) To request, review and accept proposals, execute
26    contracts, purchase renewable energy credits and otherwise

 

 

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1    dedicate funds from the Illinois Power Agency Renewable
2    Energy Resources Fund to create and carry out the
3    objectives of the Illinois Solar for All Program program
4    in accordance with Section 1-56 of this Act.
5        (28) To ensure Illinois residents and business benefit
6    from programs administered by the Agency and are properly
7    protected from any deceptive or misleading marketing
8    practices by participants in the Agency's programs and
9    procurements.
10    (c) In conducting the procurement of electricity or other
11products, beginning January 1, 2022, the Agency shall not
12procure any products or services from persons or organizations
13that are in violation of the Displaced Energy Workers Bill of
14Rights, as provided under the Energy Community Reinvestment
15Act at the time of the procurement event or fail to comply the
16labor standards established in subparagraph (Q) of paragraph
17(1) of subsection (c) of Section 1-75.
18(Source: P.A. 99-906, eff. 6-1-17.)
 
19    (20 ILCS 3855/1-35)
20    Sec. 1-35. Agency rules. The Agency shall adopt rules as
21may be necessary and appropriate for the operation of the
22Agency. In addition to other rules relevant to the operation
23of the Agency, the Agency shall adopt rules that accomplish
24each of the following:
25        (1) Establish procedures for monitoring the

 

 

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1    administration of any contract administered directly or
2    indirectly by the Agency; except that the procedures shall
3    not extend to executed contracts between electric
4    utilities and their suppliers.
5        (2) If deemed necessary by the Agency, establish
6    Establish procedures for the recovery of costs incurred in
7    connection with the development and construction of a
8    facility should the Agency cancel a project, provided that
9    no such costs shall be passed on to public utilities or
10    their customers or paid from the Illinois Power Agency
11    Operations Fund.
12        (3) Implement accounting rules and a system of
13    accounts, in accordance with State law, permitting all
14    reporting (i) required by the State, (ii) required under
15    this Act, (iii) required by the Authority, or (iv)
16    required under the Public Utilities Act.
17    The Agency shall not adopt any rules that infringe upon
18the authority granted to the Commission.
19(Source: P.A. 95-481, eff. 8-28-07.)
 
20    (20 ILCS 3855/1-56)
21    Sec. 1-56. Illinois Power Agency Renewable Energy
22Resources Fund; Illinois Solar for All Program.
23    (a) The Illinois Power Agency Renewable Energy Resources
24Fund is created as a special fund in the State treasury.
25    (b) The Illinois Power Agency Renewable Energy Resources

 

 

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

 

 

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1    Adjustable Block program described in subparagraphs (K)
2    through (M) of paragraph (1) of subsection (c) of Section
3    1-75, energy efficiency programs, job training programs,
4    and community action agencies. The Agency shall strive to
5    ensure that renewable energy credits procured through the
6    Illinois Solar for All Program and each of its subprograms
7    are purchased from projects across the breadth of
8    low-income and environmental justice communities in
9    Illinois, including both urban and rural communities, are
10    not concentrated in a few communities, and do not exclude
11    particular low-income or environmental justice
12    communities. The Agency shall include a description of its
13    proposed approach to the design, administration,
14    implementation and evaluation of the Illinois Solar for
15    All Program, as part of the long-term renewable resources
16    procurement plan authorized by subsection (c) of Section
17    1-75 of this Act, and the program shall be designed to grow
18    the low-income solar market. The Agency or utility, as
19    applicable, shall purchase renewable energy credits from
20    the (i) photovoltaic distributed renewable energy
21    generation projects and (ii) community solar projects that
22    are procured under procurement processes authorized by the
23    long-term renewable resources procurement plans approved
24    by the Commission.
25        The Illinois Solar for All Program shall include the
26    program offerings described in subparagraphs (A) through

 

 

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1    (E) (D) of this paragraph (2), which the Agency shall
2    implement through contracts with third-party providers
3    and, subject to appropriation, pay the approximate amounts
4    identified using monies available in the Illinois Power
5    Agency Renewable Energy Resources Fund. Each contract that
6    provides for the installation of solar facilities shall
7    provide that the solar facilities will produce energy and
8    economic benefits, at a level determined by the Agency to
9    be reasonable, for the participating low income customers.
10    The monies available in the Illinois Power Agency
11    Renewable Energy Resources Fund and not otherwise
12    committed to contracts executed under subsection (i) of
13    this Section, as well as, in the case of the programs
14    described under subparagraphs (A) through (E) of this
15    paragraph (2), funding authorized pursuant to subparagraph
16    (O) of paragraph (1) of subsection (c) of Section 1-75 of
17    this Act, shall initially be allocated among the programs
18    described in this paragraph (2), as follows: 35% 22.5% of
19    these funds shall be allocated to programs described in
20    subparagraphs subparagraph (A) and (E) of this paragraph
21    (2), 40% 37.5% of these funds shall be allocated to
22    programs described in subparagraph (B) of this paragraph
23    (2), and 25% 15% of these funds shall be allocated to
24    programs described in subparagraph (C) of this paragraph
25    (2), and 25% of these funds, but in no event more than
26    $50,000,000, shall be allocated to programs described in

 

 

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1    subparagraph (D) of this paragraph (2). The allocation of
2    funds among subparagraphs (A), (B), or (C), and (E) of
3    this paragraph (2) may be changed if the Agency, after
4    receiving input through a stakeholder process, or
5    administrator, through delegated authority, determines
6    incentives in subparagraphs (A), (B), or (C), or (E) of
7    this paragraph (2) have not been adequately subscribed to
8    fully utilize available Illinois Solar for All Program
9    funds the Illinois Power Agency Renewable Energy Resources
10    Fund. The determination shall include input through a
11    stakeholder process. The program offerings described in
12    subparagraphs (A) through (D) of this paragraph (2) shall
13    also be implemented through contracts funded from such
14    additional amounts as are allocated to one or more of the
15    programs in the long-term renewable resources procurement
16    plans as specified in subsection (c) of Section 1-75 of
17    this Act and subparagraph (O) of paragraph (1) of such
18    subsection (c).
19        Contracts that will be paid with funds in the Illinois
20    Power Agency Renewable Energy Resources Fund shall be
21    executed by the Agency. Contracts that will be paid with
22    funds collected by an electric utility shall be executed
23    by the electric utility.
24        Contracts under the Illinois Solar for All Program
25    shall include an approach, as set forth in the long-term
26    renewable resources procurement plans, to ensure the

 

 

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1    wholesale market value of the energy is credited to
2    participating low-income customers or organizations and to
3    ensure tangible economic benefits flow directly to program
4    participants, except in the case of low-income
5    multi-family housing where the low-income customer does
6    not directly pay for energy. Priority shall be given to
7    projects that demonstrate meaningful involvement of
8    low-income community members in designing the initial
9    proposals. Acceptable proposals to implement projects must
10    demonstrate the applicant's ability to conduct initial
11    community outreach, education, and recruitment of
12    low-income participants in the community. Projects must
13    include job training opportunities if available, with the
14    specific level of trainee usage to be determined through
15    the Agency's long-term renewable resources procurement
16    plan, and the Illinois Solar for All Program Administrator
17    shall endeavor to coordinate with the job training
18    programs described in paragraph (1) of subsection (a) of
19    Section 16-108.12 of the Public Utilities Act and in the
20    Energy Transition Act.
21        The Agency shall make every effort to ensure that
22    small and emerging businesses, particularly those located
23    in low-income and environmental justice communities, are
24    able to participate in the Illinois Solar for All Program.
25    These efforts may include, but shall not be limited to,
26    proactive support from the program administrator,

 

 

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1    different or preferred access to subprograms and
2    administrator-identified customers or grassroots
3    education provider-identified customers, and different
4    incentive levels. The Agency shall report on progress and
5    barriers to participation of small and emerging businesses
6    in the Illinois Solar for All Program at least once a year.
7    The report shall be made available on the Agency's website
8    and, in years when the Agency is updating its long-term
9    renewable resources procurement plan, included in that
10    Plan.
11            (A) Low-income single-family and small multifamily
12        solar distributed generation incentive. This program
13        will provide incentives to low-income customers,
14        either directly or through solar providers, to
15        increase the participation of low-income households in
16        photovoltaic on-site distributed generation at
17        residential buildings containing one to 4 units.
18        Companies participating in this program that install
19        solar panels shall commit to hiring job trainees for a
20        portion of their low-income installations, and an
21        administrator shall facilitate partnering the
22        companies that install solar panels with entities that
23        provide solar panel installation job training. It is a
24        goal of this program that a minimum of 25% of the
25        incentives for this program be allocated to projects
26        located within environmental justice communities.

 

 

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1        Contracts entered into under this paragraph may be
2        entered into with an entity that will develop and
3        administer the program and shall also include
4        contracts for renewable energy credits from the
5        photovoltaic distributed generation that is the
6        subject of the program, as set forth in the long-term
7        renewable resources procurement plan. Additionally:
8                (i) The Agency shall reserve a portion of this
9            program for projects that promote energy
10            sovereignty through ownership of projects by
11            low-income households, not-for-profit
12            organizations providing services to low-income
13            households, affordable housing owners, community
14            cooperatives, or community-based limited liability
15            companies providing services to low-income
16            households. Projects that feature energy ownership
17            should ensure that local people have control of
18            the project and reap benefits from the project
19            over and above energy bill savings. The Agency may
20            consider the inclusion of projects that promote
21            ownership over time or that involve partial
22            project ownership by communities, as promoting
23            energy sovereignty. Incentives for projects that
24            promote energy sovereignty may be higher than
25            incentives for equivalent projects that do not
26            promote energy sovereignty under this same

 

 

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1            program.
2                (ii) Through its long-term renewable resources
3            procurement plan, the Agency shall consider
4            additional program and contract requirements to
5            ensure faithful compliance by applicants
6            benefiting from preferences for projects
7            designated to promote energy sovereignty. The
8            Agency shall make every effort to enable solar
9            providers already participating in the Adjustable
10            Block-Program under subparagraph (K) of paragraph
11            (1) of subsection (c) of Section 1-75 of this Act,
12            and particularly solar providers developing
13            projects under item (i) of subparagraph (K) of
14            paragraph (1) of subsection (c) of Section 1-75 of
15            this Act to easily participate in the Low-Income
16            Distributed Generation Incentive program described
17            under this subparagraph (A), and vice versa. This
18            effort may include, but shall not be limited to,
19            utilizing similar or the same application systems
20            and processes, similar or the same forms and
21            formats of communication, and providing active
22            outreach to companies participating in one program
23            but not the other. The Agency shall report on
24            efforts made to encourage this cross-participation
25            in its long-term renewable resources procurement
26            plan.

 

 

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

 

 

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1        not-for-profit organizations providing services to
2        low-income households, affordable housing owners, or
3        community-based limited liability companies providing
4        services to low-income households. Projects that
5        feature energy ownership should ensure that local
6        people have control of the project and reap benefits
7        from the project over and above energy bill savings.
8        The Agency may consider the inclusion of projects that
9        promote ownership over time or that involve partial
10        project ownership by communities, as promoting energy
11        sovereignty. Incentives for projects that promote
12        energy sovereignty may be higher than incentives for
13        equivalent projects that do not promote energy
14        sovereignty under this same program. Contracts entered
15        into under this paragraph may be entered into with
16        developers and shall also include contracts for
17        renewable energy credits related to the program.
18            (C) Incentives for non-profits and public
19        facilities. Under this program funds shall be used to
20        support on-site photovoltaic distributed renewable
21        energy generation devices to serve the load associated
22        with not-for-profit customers and to support
23        photovoltaic distributed renewable energy generation
24        that uses photovoltaic technology to serve the load
25        associated with public sector customers taking service
26        at public buildings. Companies participating in this

 

 

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1        program that develop or install solar projects shall
2        commit to hiring job trainees for a portion of their
3        low-income installations, and an administrator shall
4        facilitate partnering the companies that install solar
5        projects with entities that provide solar installation
6        and related job training. Through its long-term
7        renewable resources procurement plan, the Agency shall
8        consider additional program and contract requirements
9        to ensure faithful compliance by applicants benefiting
10        from preferences for projects designated to promote
11        energy sovereignty. It is a goal of this program that
12        at least 25% of the incentives for this program be
13        allocated to projects located in environmental justice
14        communities. Contracts entered into under this
15        paragraph may be entered into with an entity that will
16        develop and administer the program or with developers
17        and shall also include contracts for renewable energy
18        credits related to the program.
19            (D) (Blank). Low-Income Community Solar Pilot
20        Projects. Under this program, persons, including, but
21        not limited to, electric utilities, shall propose
22        pilot community solar projects. Community solar
23        projects proposed under this subparagraph (D) may
24        exceed 2,000 kilowatts in nameplate capacity, but the
25        amount paid per project under this program may not
26        exceed $20,000,000. Pilot projects must result in

 

 

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

 

 

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1        a portion of their low-income installations, and an
2        administrator shall facilitate partnering the
3        companies that install solar projects with entities
4        that provide solar installation and related job
5        training. It is a goal of this program that a minimum
6        of 25% of the incentives for this program be allocated
7        to projects located within environmental justice
8        communities. The Agency shall reserve a portion of
9        this program for projects that promote energy
10        sovereignty through ownership of projects by
11        low-income households, not-for-profit organizations
12        providing services to low-income households,
13        affordable housing owners, or community-based limited
14        liability companies providing services to low-income
15        households. Projects that feature energy ownership
16        should ensure that local people have control of the
17        project and reap benefits from the project over and
18        above energy bill savings. The Agency may consider the
19        inclusion of projects that promote ownership over time
20        or that involve partial project ownership by
21        communities, as promoting energy sovereignty.
22        Incentives for projects that promote energy
23        sovereignty may be higher than incentives for
24        equivalent projects that do not promote energy
25        sovereignty under this same program.
26        The requirement that a qualified person, as defined in

 

 

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1    paragraph (1) of subsection (i) of this Section, install
2    photovoltaic devices does not apply to the Illinois Solar
3    for All Program described in this subsection (b).
4        In addition to the programs outlined in paragraphs (A)
5    through (E), the Agency and other parties may propose
6    additional programs through the Long-Term Renewable
7    Resources Procurement Plan developed and approved under
8    paragraph (5) of subsection (b) of Section 16-111.5 of the
9    Public Utilities Act. Additional programs may target
10    market segments not specified above and may also include
11    incentives targeted to increase the uptake of
12    nonphotovoltaic technologies by low-income customers,
13    including energy storage paired with photovoltaics, if the
14    Commission determines that the Illinois Solar for All
15    Program would provide greater benefits to the public
16    health and well-being of low-income residents through also
17    supporting that additional program versus supporting
18    programs already authorized.
19        (3) Costs associated with the Illinois Solar for All
20    Program and its components described in paragraph (2) of
21    this subsection (b), including, but not limited to, costs
22    associated with procuring experts, consultants, and the
23    program administrator referenced in this subsection (b)
24    and related incremental costs, costs related to income
25    verification and facilitating customer participation in
26    the program, and costs related to the evaluation of the

 

 

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1    Illinois Solar for All Program, may be paid for using
2    monies in the Illinois Power Agency Renewable Energy
3    Resources Fund, and funds allocated pursuant to
4    subparagraph (O) of paragraph (1) of subsection (c) of
5    Section 1-75, but the Agency or program administrator
6    shall strive to minimize costs in the implementation of
7    the program. The Agency or contracting electric utility
8    shall purchase renewable energy credits from generation
9    that is the subject of a contract under subparagraphs (A)
10    through (E) (D) of this paragraph (2) of this subsection
11    (b), and may pay for such renewable energy credits through
12    an upfront payment per installed kilowatt of nameplate
13    capacity paid once the device is interconnected at the
14    distribution system level of the interconnecting utility
15    and verified as is energized. Payments for renewable
16    energy credits The payment shall be in exchange for an
17    assignment of all renewable energy credits generated by
18    the system during the first 15 years of operation and
19    shall be structured to overcome barriers to participation
20    in the solar market by the low-income community. The
21    incentives provided for in this Section may be implemented
22    through the pricing of renewable energy credits where the
23    prices paid for the credits are higher than the prices
24    from programs offered under subsection (c) of Section 1-75
25    of this Act to account for the additional capital
26    necessary to successfully access targeted market segments

 

 

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1    incentives. The Agency shall ensure collaboration with
2    community agencies, and allocate up to 5% of the funds
3    available under the Illinois Solar for All Program to
4    community-based groups to assist in grassroots education
5    efforts related to the Illinois Solar for All Program. The
6    Agency or contracting electric utility shall retire any
7    renewable energy credits purchased under from this program
8    and the credits shall count towards the obligation under
9    subsection (c) of Section 1-75 of this Act for the
10    electric utility to which the project is interconnected,
11    if applicable.
12        The Agency shall direct that up to 5% of the funds
13    available under the Illinois Solar for All Program to
14    community-based groups and other qualifying organizations
15    to assist in community-driven education efforts related to
16    the Illinois Solar for All Program, including general
17    energy education, job training program outreach efforts,
18    and other activities deemed to be qualified by the Agency.
19    Grassroots education funding shall not be used to support
20    the marketing by solar project development firms and
21    organizations, unless such education provides equal
22    opportunities for all applicable firms and organizations.
23        (4) The Agency shall, consistent with the requirements
24    of this subsection (b), propose the Illinois Solar for All
25    Program terms, conditions, and requirements, including the
26    prices to be paid for renewable energy credits, and which

 

 

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

 

 

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1    qualifications for a third-party program administrator or
2    administrators to administer all or a portion of the
3    Illinois Solar for All Program. The third-party program
4    administrator shall be chosen through a competitive bid
5    process based on selection criteria and requirements
6    developed by the Agency, including, but not limited to,
7    experience in administering low-income energy programs and
8    overseeing statewide clean energy or energy efficiency
9    services. If the Agency retains a program administrator or
10    administrators to implement all or a portion of the
11    Illinois Solar for All Program, each administrator shall
12    periodically submit reports to the Agency and Commission
13    for each program that it administers, at appropriate
14    intervals to be identified by the Agency in its long-term
15    renewable resources procurement plan, provided that the
16    reporting interval is at least quarterly. The third-party
17    program administrator may be, but need not be, the same
18    administrator as for the Adjustable Block program
19    described in subparagraphs (K) through (M) of paragraph
20    (1) of subsection (c) of Section 1-75. The Agency, through
21    its long-term renewable resources procurement plan
22    approval process, shall also determine if individual
23    subprograms of the Illinois Solar for All Program are
24    better served by a different or separate Program
25    Administrator.
26        The third-party administrator's responsibilities

 

 

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1    shall also include facilitating placement for graduates of
2    Illinois-based renewable energy-specific job training
3    programs, including the Clean Jobs Workforce Network
4    Program and the Illinois Climate Works Preapprenticeship
5    Program administered by the Department of Commerce and
6    Economic Opportunity and programs administered under
7    Section 16-108.12 of the Public Utilities Act. To increase
8    the uptake of trainees by participating firms, the
9    administrator shall also develop a web-based clearinghouse
10    for information available to both job training program
11    graduates and firms participating, directly or indirectly,
12    in Illinois solar incentive programs. The program
13    administrator shall also coordinate its activities with
14    entities implementing electric and natural gas
15    income-qualified energy efficiency programs, including
16    customer referrals to and from such programs, and connect
17    prospective low-income solar customers with any existing
18    deferred maintenance programs where applicable.
19        (6) The long-term renewable resources procurement plan
20    shall also provide for an independent evaluation of the
21    Illinois Solar for All Program. At least every 2 years,
22    the Agency shall select an independent evaluator to review
23    and report on the Illinois Solar for All Program and the
24    performance of the third-party program administrator of
25    the Illinois Solar for All Program. The evaluation shall
26    be based on objective criteria developed through a public

 

 

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1    stakeholder process. The process shall include feedback
2    and participation from Illinois Solar for All Program
3    stakeholders, including participants and organizations in
4    environmental justice and historically underserved
5    communities. The report shall include a summary of the
6    evaluation of the Illinois Solar for All Program based on
7    the stakeholder developed objective criteria. The report
8    shall include the number of projects installed; the total
9    installed capacity in kilowatts; the average cost per
10    kilowatt of installed capacity to the extent reasonably
11    obtainable by the Agency; the number of jobs or job
12    opportunities created; economic, social, and environmental
13    benefits created; and the total administrative costs
14    expended by the Agency and program administrator to
15    implement and evaluate the program. The report shall be
16    delivered to the Commission and posted on the Agency's
17    website, and shall be used, as needed, to revise the
18    Illinois Solar for All Program. The Commission shall also
19    consider the results of the evaluation as part of its
20    review of the long-term renewable resources procurement
21    plan under subsection (c) of Section 1-75 of this Act.
22        (7) If additional funding for the programs described
23    in this subsection (b) is available under subsection (k)
24    of Section 16-108 of the Public Utilities Act, then the
25    Agency shall submit a procurement plan to the Commission
26    no later than September 1, 2018, that proposes how the

 

 

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1    Agency will procure programs on behalf of the applicable
2    utility. After notice and hearing, the Commission shall
3    approve, or approve with modification, the plan no later
4    than November 1, 2018.
5        (8) As part of the development and update of the
6    long-term renewable resources procurement plan authorized
7    by subsection (c) of Section 1-75 of this Act, the Agency
8    shall plan for: (A) actions to refer customers from the
9    Illinois Solar for All Program to electric and natural gas
10    income-qualified energy efficiency programs, and vice
11    versa, with the goal of increasing participation in both
12    of these programs; (B) effective procedures for data
13    sharing, as needed, to effectuate referrals between the
14    Illinois Solar for All Program and both electric and
15    natural gas income-qualified energy efficiency programs,
16    including sharing customer information directly with the
17    utilities, as needed and appropriate; and (C) efforts to
18    identify any existing deferred maintenance programs for
19    which prospective Solar for All Program customers may be
20    eligible and connect prospective customers for whom
21    deferred maintenance is or may be a barrier to solar
22    installation to those programs.
23    As used in this subsection (b), "low-income households"
24means persons and families whose income does not exceed 80% of
25area median income, adjusted for family size and revised every
265 years.

 

 

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1    For the purposes of this subsection (b), the Agency shall
2define "environmental justice community" based on the
3methodologies and findings established by the Agency and the
4Administrator for the Illinois Solar for All Program in its
5initial long-term renewable resources procurement plan and as
6updated by the Agency and the Administrator for the Illinois
7Solar for All Program as part of the long-term renewable
8resources procurement plan update development, to ensure, to
9the extent practicable, compatibility with other agencies'
10definitions and may, for guidance, look to the definitions
11used by federal, state, or local governments.
12    (b-5) After the receipt of all payments required by
13Section 16-115D of the Public Utilities Act, no additional
14funds shall be deposited into the Illinois Power Agency
15Renewable Energy Resources Fund unless directed by order of
16the Commission.
17    (b-10) After the receipt of all payments required by
18Section 16-115D of the Public Utilities Act and payment in
19full of all contracts executed by the Agency under subsections
20(b) and (i) of this Section, if the balance of the Illinois
21Power Agency Renewable Energy Resources Fund is under $5,000,
22then the Fund shall be inoperative and any remaining funds and
23any funds submitted to the Fund after that date, shall be
24transferred to the Supplemental Low-Income Energy Assistance
25Fund for use in the Low-Income Home Energy Assistance Program,
26as authorized by the Energy Assistance Act.

 

 

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1    (c) (Blank).
2    (d) (Blank).
3    (e) All renewable energy credits procured using monies
4from the Illinois Power Agency Renewable Energy Resources Fund
5shall be permanently retired.
6    (f) The selection of one or more third-party program
7managers or administrators, the selection of the independent
8evaluator, and the procurement processes described in this
9Section are exempt from the requirements of the Illinois
10Procurement Code, under Section 20-10 of that Code.
11    (g) All disbursements from the Illinois Power Agency
12Renewable Energy Resources Fund shall be made only upon
13warrants of the Comptroller drawn upon the Treasurer as
14custodian of the Fund upon vouchers signed by the Director or
15by the person or persons designated by the Director for that
16purpose. The Comptroller is authorized to draw the warrant
17upon vouchers so signed. The Treasurer shall accept all
18warrants so signed and shall be released from liability for
19all payments made on those warrants.
20    (h) The Illinois Power Agency Renewable Energy Resources
21Fund shall not be subject to sweeps, administrative charges,
22or chargebacks, including, but not limited to, those
23authorized under Section 8h of the State Finance Act, that
24would in any way result in the transfer of any funds from this
25Fund to any other fund of this State or in having any such
26funds utilized for any purpose other than the express purposes

 

 

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1set forth in this Section.
2    (h-5) The Agency may assess fees to each bidder to recover
3the costs incurred in connection with a procurement process
4held under this Section. Fees collected from bidders shall be
5deposited into the Renewable Energy Resources Fund.
6    (i) Supplemental procurement process.
7        (1) Within 90 days after the effective date of this
8    amendatory Act of the 98th General Assembly, the Agency
9    shall develop a one-time supplemental procurement plan
10    limited to the procurement of renewable energy credits, if
11    available, from new or existing photovoltaics, including,
12    but not limited to, distributed photovoltaic generation.
13    Nothing in this subsection (i) requires procurement of
14    wind generation through the supplemental procurement.
15        Renewable energy credits procured from new
16    photovoltaics, including, but not limited to, distributed
17    photovoltaic generation, under this subsection (i) must be
18    procured from devices installed by a qualified person. In
19    its supplemental procurement plan, the Agency shall
20    establish contractually enforceable mechanisms for
21    ensuring that the installation of new photovoltaics is
22    performed by a qualified person.
23        For the purposes of this paragraph (1), "qualified
24    person" means a person who performs installations of
25    photovoltaics, including, but not limited to, distributed
26    photovoltaic generation, and who: (A) has completed an

 

 

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1    apprenticeship as a journeyman electrician from a United
2    States Department of Labor registered electrical
3    apprenticeship and training program and received a
4    certification of satisfactory completion; or (B) does not
5    currently meet the criteria under clause (A) of this
6    paragraph (1), but is enrolled in a United States
7    Department of Labor registered electrical apprenticeship
8    program, provided that the person is directly supervised
9    by a person who meets the criteria under clause (A) of this
10    paragraph (1); or (C) has obtained one of the following
11    credentials in addition to attesting to satisfactory
12    completion of at least 5 years or 8,000 hours of
13    documented hands-on electrical experience: (i) a North
14    American Board of Certified Energy Practitioners (NABCEP)
15    Installer Certificate for Solar PV; (ii) an Underwriters
16    Laboratories (UL) PV Systems Installer Certificate; (iii)
17    an Electronics Technicians Association, International
18    (ETAI) Level 3 PV Installer Certificate; or (iv) an
19    Associate in Applied Science degree from an Illinois
20    Community College Board approved community college program
21    in renewable energy or a distributed generation
22    technology.
23        For the purposes of this paragraph (1), "directly
24    supervised" means that there is a qualified person who
25    meets the qualifications under clause (A) of this
26    paragraph (1) and who is available for supervision and

 

 

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1    consultation regarding the work performed by persons under
2    clause (B) of this paragraph (1), including a final
3    inspection of the installation work that has been directly
4    supervised to ensure safety and conformity with applicable
5    codes.
6        For the purposes of this paragraph (1), "install"
7    means the major activities and actions required to
8    connect, in accordance with applicable building and
9    electrical codes, the conductors, connectors, and all
10    associated fittings, devices, power outlets, or
11    apparatuses mounted at the premises that are directly
12    involved in delivering energy to the premises' electrical
13    wiring from the photovoltaics, including, but not limited
14    to, to distributed photovoltaic generation.
15        The renewable energy credits procured pursuant to the
16    supplemental procurement plan shall be procured using up
17    to $30,000,000 from the Illinois Power Agency Renewable
18    Energy Resources Fund. The Agency shall not plan to use
19    funds from the Illinois Power Agency Renewable Energy
20    Resources Fund in excess of the monies on deposit in such
21    fund or projected to be deposited into such fund. The
22    supplemental procurement plan shall ensure adequate,
23    reliable, affordable, efficient, and environmentally
24    sustainable renewable energy resources (including credits)
25    at the lowest total cost over time, taking into account
26    any benefits of price stability.

 

 

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1        To the extent available, 50% of the renewable energy
2    credits procured from distributed renewable energy
3    generation shall come from devices of less than 25
4    kilowatts in nameplate capacity. Procurement of renewable
5    energy credits from distributed renewable energy
6    generation devices shall be done through multi-year
7    contracts of no less than 5 years. The Agency shall create
8    credit requirements for counterparties. In order to
9    minimize the administrative burden on contracting
10    entities, the Agency shall solicit the use of third
11    parties to aggregate distributed renewable energy. These
12    third parties shall enter into and administer contracts
13    with individual distributed renewable energy generation
14    device owners. An individual distributed renewable energy
15    generation device owner shall have the ability to measure
16    the output of his or her distributed renewable energy
17    generation device.
18        In developing the supplemental procurement plan, the
19    Agency shall hold at least one workshop open to the public
20    within 90 days after the effective date of this amendatory
21    Act of the 98th General Assembly and shall consider any
22    comments made by stakeholders or the public. Upon
23    development of the supplemental procurement plan within
24    this 90-day period, copies of the supplemental procurement
25    plan shall be posted and made publicly available on the
26    Agency's and Commission's websites. All interested parties

 

 

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1    shall have 14 days following the date of posting to
2    provide comment to the Agency on the supplemental
3    procurement plan. All comments submitted to the Agency
4    shall be specific, supported by data or other detailed
5    analyses, and, if objecting to all or a portion of the
6    supplemental procurement plan, accompanied by specific
7    alternative wording or proposals. All comments shall be
8    posted on the Agency's and Commission's websites. Within
9    14 days following the end of the 14-day review period, the
10    Agency shall revise the supplemental procurement plan as
11    necessary based on the comments received and file its
12    revised supplemental procurement plan with the Commission
13    for approval.
14        (2) Within 5 days after the filing of the supplemental
15    procurement plan at the Commission, any person objecting
16    to the supplemental procurement plan shall file an
17    objection with the Commission. Within 10 days after the
18    filing, the Commission shall determine whether a hearing
19    is necessary. The Commission shall enter its order
20    confirming or modifying the supplemental procurement plan
21    within 90 days after the filing of the supplemental
22    procurement plan by the Agency.
23        (3) The Commission shall approve the supplemental
24    procurement plan of renewable energy credits to be
25    procured from new or existing photovoltaics, including,
26    but not limited to, distributed photovoltaic generation,

 

 

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1    if the Commission determines that it will ensure adequate,
2    reliable, affordable, efficient, and environmentally
3    sustainable electric service in the form of renewable
4    energy credits at the lowest total cost over time, taking
5    into account any benefits of price stability.
6        (4) The supplemental procurement process under this
7    subsection (i) shall include each of the following
8    components:
9            (A) Procurement administrator. The Agency may
10        retain a procurement administrator in the manner set
11        forth in item (2) of subsection (a) of Section 1-75 of
12        this Act to conduct the supplemental procurement or
13        may elect to use the same procurement administrator
14        administering the Agency's annual procurement under
15        Section 1-75.
16            (B) Procurement monitor. The procurement monitor
17        retained by the Commission pursuant to Section
18        16-111.5 of the Public Utilities Act shall:
19                (i) monitor interactions among the procurement
20            administrator and bidders and suppliers;
21                (ii) monitor and report to the Commission on
22            the progress of the supplemental procurement
23            process;
24                (iii) provide an independent confidential
25            report to the Commission regarding the results of
26            the procurement events;

 

 

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1                (iv) assess compliance with the procurement
2            plan approved by the Commission for the
3            supplemental procurement process;
4                (v) preserve the confidentiality of supplier
5            and bidding information in a manner consistent
6            with all applicable laws, rules, regulations, and
7            tariffs;
8                (vi) provide expert advice to the Commission
9            and consult with the procurement administrator
10            regarding issues related to procurement process
11            design, rules, protocols, and policy-related
12            matters;
13                (vii) consult with the procurement
14            administrator regarding the development and use of
15            benchmark criteria, standard form contracts,
16            credit policies, and bid documents; and
17                (viii) perform, with respect to the
18            supplemental procurement process, any other
19            procurement monitor duties specifically delineated
20            within subsection (i) of this Section.
21            (C) Solicitation, pre-qualification, and
22        registration of bidders. The procurement administrator
23        shall disseminate information to potential bidders to
24        promote a procurement event, notify potential bidders
25        that the procurement administrator may enter into a
26        post-bid price negotiation with bidders that meet the

 

 

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1        applicable benchmarks, provide supply requirements,
2        and otherwise explain the competitive procurement
3        process. In addition to such other publication as the
4        procurement administrator determines is appropriate,
5        this information shall be posted on the Agency's and
6        the Commission's websites. The procurement
7        administrator shall also administer the
8        prequalification process, including evaluation of
9        credit worthiness, compliance with procurement rules,
10        and agreement to the standard form contract developed
11        pursuant to item (D) of this paragraph (4). The
12        procurement administrator shall then identify and
13        register bidders to participate in the procurement
14        event.
15            (D) Standard contract forms and credit terms and
16        instruments. The procurement administrator, in
17        consultation with the Agency, the Commission, and
18        other interested parties and subject to Commission
19        oversight, shall develop and provide standard contract
20        forms for the supplier contracts that meet generally
21        accepted industry practices as well as include any
22        applicable State of Illinois terms and conditions that
23        are required for contracts entered into by an agency
24        of the State of Illinois. Standard credit terms and
25        instruments that meet generally accepted industry
26        practices shall be similarly developed. Contracts for

 

 

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1        new photovoltaics shall include a provision attesting
2        that the supplier will use a qualified person for the
3        installation of the device pursuant to paragraph (1)
4        of subsection (i) of this Section. The procurement
5        administrator shall make available to the Commission
6        all written comments it receives on the contract
7        forms, credit terms, or instruments. If the
8        procurement administrator cannot reach agreement with
9        the parties as to the contract terms and conditions,
10        the procurement administrator must notify the
11        Commission of any disputed terms and the Commission
12        shall resolve the dispute. The terms of the contracts
13        shall not be subject to negotiation by winning
14        bidders, and the bidders must agree to the terms of the
15        contract in advance so that winning bids are selected
16        solely on the basis of price.
17            (E) Requests for proposals; competitive
18        procurement process. The procurement administrator
19        shall design and issue requests for proposals to
20        supply renewable energy credits in accordance with the
21        supplemental procurement plan, as approved by the
22        Commission. The requests for proposals shall set forth
23        a procedure for sealed, binding commitment bidding
24        with pay-as-bid settlement, and provision for
25        selection of bids on the basis of price, provided,
26        however, that no bid shall be accepted if it exceeds

 

 

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1        the benchmark developed pursuant to item (F) of this
2        paragraph (4).
3            (F) Benchmarks. Benchmarks for each product to be
4        procured shall be developed by the procurement
5        administrator in consultation with Commission staff,
6        the Agency, and the procurement monitor for use in
7        this supplemental procurement.
8            (G) A plan for implementing contingencies in the
9        event of supplier default, Commission rejection of
10        results, or any other cause.
11        (5) Within 2 business days after opening the sealed
12    bids, the procurement administrator shall submit a
13    confidential report to the Commission. The report shall
14    contain the results of the bidding for each of the
15    products along with the procurement administrator's
16    recommendation for the acceptance and rejection of bids
17    based on the price benchmark criteria and other factors
18    observed in the process. The procurement monitor also
19    shall submit a confidential report to the Commission
20    within 2 business days after opening the sealed bids. The
21    report shall contain the procurement monitor's assessment
22    of bidder behavior in the process as well as an assessment
23    of the procurement administrator's compliance with the
24    procurement process and rules. The Commission shall review
25    the confidential reports submitted by the procurement
26    administrator and procurement monitor and shall accept or

 

 

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1    reject the recommendations of the procurement
2    administrator within 2 business days after receipt of the
3    reports.
4        (6) Within 3 business days after the Commission
5    decision approving the results of a procurement event, the
6    Agency shall enter into binding contractual arrangements
7    with the winning suppliers using the standard form
8    contracts.
9        (7) The names of the successful bidders and the
10    average of the winning bid prices for each contract type
11    and for each contract term shall be made available to the
12    public within 2 days after the supplemental procurement
13    event. The Commission, the procurement monitor, the
14    procurement administrator, the Agency, and all
15    participants in the procurement process shall maintain the
16    confidentiality of all other supplier and bidding
17    information in a manner consistent with all applicable
18    laws, rules, regulations, and tariffs. Confidential
19    information, including the confidential reports submitted
20    by the procurement administrator and procurement monitor
21    pursuant to this Section, shall not be made publicly
22    available and shall not be discoverable by any party in
23    any proceeding, absent a compelling demonstration of need,
24    nor shall those reports be admissible in any proceeding
25    other than one for law enforcement purposes.
26        (8) The supplemental procurement provided in this

 

 

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1    subsection (i) shall not be subject to the requirements
2    and limitations of subsections (c) and (d) of this
3    Section.
4        (9) Expenses incurred in connection with the
5    procurement process held pursuant to this Section,
6    including, but not limited to, the cost of developing the
7    supplemental procurement plan, the procurement
8    administrator, procurement monitor, and the cost of the
9    retirement of renewable energy credits purchased pursuant
10    to the supplemental procurement shall be paid for from the
11    Illinois Power Agency Renewable Energy Resources Fund. The
12    Agency shall enter into an interagency agreement with the
13    Commission to reimburse the Commission for its costs
14    associated with the procurement monitor for the
15    supplemental procurement process.
16(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)
 
17    (20 ILCS 3855/1-70)
18    Sec. 1-70. Agency officials.
19    (a) The Agency shall have a Director who meets the
20qualifications specified in Section 5-222 of the Civil
21Administrative Code of Illinois.
22    (b) Within the Illinois Power Agency, the Agency shall
23establish a Planning and Procurement Bureau and may establish
24a Resource Development Bureau. Each Bureau shall report to the
25Director.

 

 

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1    (c) The Chief of the Planning and Procurement Bureau shall
2be appointed by the Director, at the Director's sole
3discretion, and (i) shall have at least 5 years of direct
4experience in electricity supply planning and procurement and
5(ii) shall also hold an advanced degree in risk management,
6law, business, or a related field.
7    (d) The Chief of the Resource Development Bureau may be
8appointed by the Director and (i) shall have at least 5 years
9of direct experience in electric generating project
10development and (ii) shall also hold an advanced degree in
11economics, engineering, law, business, or a related field.
12    (e) For terms ending before December 31, 2019, the
13Director shall receive an annual salary of $100,000 or as set
14by the Executive Ethics Commission based on a review of
15comparable State agency director salaries, whichever is
16higher. No annual salary for the Director or a Bureau Chief
17shall exceed the amount of salary set by law for the Governor
18that is in effect on July 1 of that fiscal year. Compensation
19Review Board, whichever is higher. For terms ending before
20December 31, 2019, the Bureau Chiefs shall each receive an
21annual salary of $85,000 or as set by the Compensation Review
22Board, whichever is higher. For terms beginning after the
23effective date of this amendatory Act of the 100th General
24Assembly, the annual salaries for the Director and the Bureau
25Chiefs shall be an amount equal to 15% more than the respective
26position's annual salary as of December 31, 2018. The

 

 

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1calculation of the 2018 salary base for this adjustment shall
2not include any cost of living adjustments, as authorized by
3Senate Joint Resolution 192 of the 86th General Assembly, for
4the period beginning July 1, 2009 to June 30, 2019. Beginning
5July 1, 2019 and each July 1 thereafter, the Director and the
6Bureau Chiefs shall receive an increase in salary based on a
7cost of living adjustment as authorized by Senate Joint
8Resolution 192 of the 86th General Assembly.
9    (f) The Director and Bureau Chiefs shall not, for 2 years
10prior to appointment or for 2 years after he or she leaves his
11or her position, be employed by an electric utility,
12independent power producer, power marketer, or alternative
13retail electric supplier regulated by the Commission or the
14Federal Energy Regulatory Commission.
15    (g) The Director and Bureau Chiefs are prohibited from:
16(i) owning, directly or indirectly, 5% or more of the voting
17capital stock of an electric utility, independent power
18producer, power marketer, or alternative retail electric
19supplier; (ii) being in any chain of successive ownership of
205% or more of the voting capital stock of any electric utility,
21independent power producer, power marketer, or alternative
22retail electric supplier; (iii) receiving any form of
23compensation, fee, payment, or other consideration from an
24electric utility, independent power producer, power marketer,
25or alternative retail electric supplier, including legal fees,
26consulting fees, bonuses, or other sums. These limitations do

 

 

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1not apply to any compensation received pursuant to a defined
2benefit plan or other form of deferred compensation, provided
3that the individual has otherwise severed all ties to the
4utility, power producer, power marketer, or alternative retail
5electric supplier.
6(Source: P.A. 99-536, eff. 7-8-16; 100-1179, eff. 1-18-19.)
 
7    (20 ILCS 3855/1-75)
8    Sec. 1-75. Planning and Procurement Bureau. The Planning
9and Procurement Bureau has the following duties and
10responsibilities:
11    (a) The Planning and Procurement Bureau shall each year,
12beginning in 2008, develop procurement plans and conduct
13competitive procurement processes in accordance with the
14requirements of Section 16-111.5 of the Public Utilities Act
15for the eligible retail customers of electric utilities that
16on December 31, 2005 provided electric service to at least
17100,000 customers in Illinois. Beginning with the delivery
18year commencing on June 1, 2017, the Planning and Procurement
19Bureau shall develop plans and processes for the procurement
20of zero emission credits from zero emission facilities in
21accordance with the requirements of subsection (d-5) of this
22Section. Beginning on the effective date of this amendatory
23Act of the 102nd General Assembly, the Planning and
24Procurement Bureau shall develop plans and processes for the
25procurement of carbon mitigation credits from carbon-free

 

 

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1energy resources in accordance with the requirements of
2subsection (d-10) of this Section. The Planning and
3Procurement Bureau shall also develop procurement plans and
4conduct competitive procurement processes in accordance with
5the requirements of Section 16-111.5 of the Public Utilities
6Act for the eligible retail customers of small
7multi-jurisdictional electric utilities that (i) on December
831, 2005 served less than 100,000 customers in Illinois and
9(ii) request a procurement plan for their Illinois
10jurisdictional load. This Section shall not apply to a small
11multi-jurisdictional utility until such time as a small
12multi-jurisdictional utility requests the Agency to prepare a
13procurement plan for their Illinois jurisdictional load. For
14the purposes of this Section, the term "eligible retail
15customers" has the same definition as found in Section
1616-111.5(a) of the Public Utilities Act.
17    Beginning with the plan or plans to be implemented in the
182017 delivery year, the Agency shall no longer include the
19procurement of renewable energy resources in the annual
20procurement plans required by this subsection (a), except as
21provided in subsection (q) of Section 16-111.5 of the Public
22Utilities Act, and shall instead develop a long-term renewable
23resources procurement plan in accordance with subsection (c)
24of this Section and Section 16-111.5 of the Public Utilities
25Act.
26    In accordance with subsection (c-5) of this Section, the

 

 

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1Planning and Procurement Bureau shall oversee the procurement
2by electric utilities that served more than 300,000 retail
3customers in this State as of January 1, 2019 of renewable
4energy credits from new utility-scale solar projects to be
5installed, along with energy storage facilities, at or
6adjacent to the sites of electric generating facilities that,
7as of January 1, 2016, burned coal as their primary fuel
8source.
9        (1) The Agency shall each year, beginning in 2008, as
10    needed, issue a request for qualifications for experts or
11    expert consulting firms to develop the procurement plans
12    in accordance with Section 16-111.5 of the Public
13    Utilities Act. In order to qualify an expert or expert
14    consulting firm must have:
15            (A) direct previous experience assembling
16        large-scale power supply plans or portfolios for
17        end-use customers;
18            (B) an advanced degree in economics, mathematics,
19        engineering, risk management, or a related area of
20        study;
21            (C) 10 years of experience in the electricity
22        sector, including managing supply risk;
23            (D) expertise in wholesale electricity market
24        rules, including those established by the Federal
25        Energy Regulatory Commission and regional transmission
26        organizations;

 

 

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

 

 

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

 

 

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

 

 

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1Section 16-111.5 of the Public Utilities Act, to ensure
2adequate, reliable, affordable, efficient, and environmentally
3sustainable electric service at the lowest total cost over
4time, taking into account any benefits of price stability, for
5eligible retail customers of electric utilities that on
6December 31, 2005 provided electric service to at least
7100,000 customers in the State of Illinois, and for eligible
8Illinois retail customers of small multi-jurisdictional
9electric utilities that (i) on December 31, 2005 served less
10than 100,000 customers in Illinois and (ii) request a
11procurement plan for their Illinois jurisdictional load.
12    (c) Renewable portfolio standard.
13        (1)(A) The Agency shall develop a long-term renewable
14    resources procurement plan that shall include procurement
15    programs and competitive procurement events necessary to
16    meet the goals set forth in this subsection (c). The
17    initial long-term renewable resources procurement plan
18    shall be released for comment no later than 160 days after
19    June 1, 2017 (the effective date of Public Act 99-906).
20    The Agency shall review, and may revise on an expedited
21    basis, the long-term renewable resources procurement plan
22    at least every 2 years, which shall be conducted in
23    conjunction with the procurement plan under Section
24    16-111.5 of the Public Utilities Act to the extent
25    practicable to minimize administrative expense. No later
26    than 120 days after the effective date of this amendatory

 

 

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1    Act of the 102nd General Assembly, the Agency shall
2    release for comment a revision to the long-term renewable
3    resources procurement plan, updating elements of the most
4    recently approved plan as needed to comply with this
5    amendatory Act of the 102nd General Assembly, and any
6    long-term renewable resources procurement plan update
7    published by the Agency but not yet approved by the
8    Illinois Commerce Commission shall be withdrawn. The
9    long-term renewable resources procurement plans shall be
10    subject to review and approval by the Commission under
11    Section 16-111.5 of the Public Utilities Act.
12        (B) Subject to subparagraph (F) of this paragraph (1),
13    the long-term renewable resources procurement plan shall
14    attempt to meet include the goals for procurement of
15    renewable energy credits at levels of to meet at least the
16    following overall percentages: 13% by the 2017 delivery
17    year; increasing by at least 1.5% each delivery year
18    thereafter to at least 25% by the 2025 delivery year;
19    increasing by at least 3% each delivery year thereafter to
20    at least 40% by the 2030 delivery year, and continuing at
21    no less than 40% 25% for each delivery year thereafter.
22    The Agency shall attempt to procure 50% by delivery year
23    2040. The Agency shall determine the annual increase
24    between delivery year 2030 and delivery year 2040, if any,
25    taking into account energy demand, other energy resources,
26    and other public policy goals. In the event of a conflict

 

 

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1    between these goals and the new wind and new photovoltaic
2    procurement requirements described in items (i) through
3    (iii) of subparagraph (C) of this paragraph (1), the
4    long-term plan shall prioritize compliance with the new
5    wind and new photovoltaic procurement requirements
6    described in items (i) through (iii) of subparagraph (C)
7    of this paragraph (1) over the annual percentage targets
8    described in this subparagraph (B). The Agency shall not
9    comply with the annual percentage targets described in
10    this subparagraph (B) by procuring renewable energy
11    credits that are unlikely to lead to the development of
12    new renewable resources.
13        For the delivery year beginning June 1, 2017, the
14    procurement plan shall attempt to include, subject to the
15    prioritization outlined in this subparagraph (B),
16    cost-effective renewable energy resources equal to at
17    least 13% of each utility's load for eligible retail
18    customers and 13% of the applicable portion of each
19    utility's load for retail customers who are not eligible
20    retail customers, which applicable portion shall equal 50%
21    of the utility's load for retail customers who are not
22    eligible retail customers on February 28, 2017.
23        For the delivery year beginning June 1, 2018, the
24    procurement plan shall attempt to include, subject to the
25    prioritization outlined in this subparagraph (B),
26    cost-effective renewable energy resources equal to at

 

 

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1    least 14.5% of each utility's load for eligible retail
2    customers and 14.5% of the applicable portion of each
3    utility's load for retail customers who are not eligible
4    retail customers, which applicable portion shall equal 75%
5    of the utility's load for retail customers who are not
6    eligible retail customers on February 28, 2017.
7        For the delivery year beginning June 1, 2019, and for
8    each year thereafter, the procurement plans shall attempt
9    to include, subject to the prioritization outlined in this
10    subparagraph (B), cost-effective renewable energy
11    resources equal to a minimum percentage of each utility's
12    load for all retail customers as follows: 16% by June 1,
13    2019; increasing by 1.5% each year thereafter to 25% by
14    June 1, 2025; and 25% by June 1, 2026; increasing by at
15    least 3% each delivery year thereafter to at least 40% by
16    the 2030 delivery year, and continuing at no less than 40%
17    for each delivery year thereafter. The Agency shall
18    attempt to procure 50% by delivery year 2040. The Agency
19    shall determine the annual increase between delivery year
20    2030 and delivery year 2040, if any, taking into account
21    energy demand, other energy resources, and other public
22    policy goals.
23        For each delivery year, the Agency shall first
24    recognize each utility's obligations for that delivery
25    year under existing contracts. Any renewable energy
26    credits under existing contracts, including renewable

 

 

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1    energy credits as part of renewable energy resources,
2    shall be used to meet the goals set forth in this
3    subsection (c) for the delivery year.
4        (C) Of the renewable energy credits procured under
5    this subsection (c), at least 75% shall come from wind and
6    photovoltaic projects. The long-term renewable resources
7    procurement plan described in subparagraph (A) of this
8    paragraph (1) shall include the procurement of renewable
9    energy credits from new projects in amounts equal to at
10    least the following:
11            (i) 10,000,000 renewable energy credits delivered
12        annually by the end of the 2021 delivery year, and
13        increasing ratably to reach 45,000,000 renewable
14        energy credits delivered annually from new wind and
15        solar projects by the end of delivery year 2030 such
16        that the goals in subparagraph (B) of this paragraph
17        (1) are met entirely by procurements of renewable
18        energy credits from new wind and photovoltaic
19        projects. Of By the end of the 2020 delivery year: At
20        least 2,000,000 renewable energy credits for each
21        delivery year shall come from new wind projects; and
22        At least 2,000,000 renewable energy credits for each
23        delivery year shall come from new photovoltaic
24        projects; of that amount, to the extent possible, the
25        Agency shall procure 45% from wind projects and 55%
26        from photovoltaic projects. Of the amount to be

 

 

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1        procured from photovoltaic projects, the Agency shall
2        procure: at least 50% from solar photovoltaic projects
3        using the program outlined in subparagraph (K) of this
4        paragraph (1) from distributed renewable energy
5        generation devices or community renewable generation
6        projects; at least 47% 40% from utility-scale solar
7        projects; at least 3% 2% from brownfield site
8        photovoltaic projects that are not community renewable
9        generation projects; and the remainder shall be
10        determined through the long-term planning process
11        described in subparagraph (A) of this paragraph (1).
12            In developing the long-term renewable resources
13        procurement plan, the Agency shall consider other
14        approaches, in addition to competitive procurements,
15        that can be used to procure renewable energy credits
16        from brownfield site photovoltaic projects and thereby
17        help return blighted or contaminated land to
18        productive use while enhancing public health and the
19        well-being of Illinois residents, including those in
20        environmental justice communities, as defined using
21        existing methodologies and findings used by the Agency
22        and its Administrator in its Illinois Solar for All
23        Program.
24            (ii) In any given delivery year, if forecasted
25        expenses are less than the maximum budget available
26        under subparagraph (E) of this paragraph (1), the

 

 

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1        Agency shall continue to procure new renewable energy
2        credits until that budget is exhausted in the manner
3        outlined in item (i) of this subparagraph (C). By the
4        end of the 2025 delivery year:
5                At least 3,000,000 renewable energy credits
6            for each delivery year shall come from new wind
7            projects; and
8                At least 3,000,000 renewable energy credits
9            for each delivery year shall come from new
10            photovoltaic projects; of that amount, to the
11            extent possible, the Agency shall procure: at
12            least 50% from solar photovoltaic projects using
13            the program outlined in subparagraph (K) of this
14            paragraph (1) from distributed renewable energy
15            devices or community renewable generation
16            projects; at least 40% from utility-scale solar
17            projects; at least 2% from brownfield site
18            photovoltaic projects that are not community
19            renewable generation projects; and the remainder
20            shall be determined through the long-term planning
21            process described in subparagraph (A) of this
22            paragraph (1).
23            (iii) By the end of the 2030 delivery year:
24                At least 4,000,000 renewable energy credits
25            for each delivery year shall come from new wind
26            projects; and

 

 

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1                At least 4,000,000 renewable energy credits
2            for each delivery year shall come from new
3            photovoltaic projects; of that amount, to the
4            extent possible, the Agency shall procure: at
5            least 50% from solar photovoltaic projects using
6            the program outlined in subparagraph (K) of this
7            paragraph (1) from distributed renewable energy
8            devices or community renewable generation
9            projects; at least 40% from utility-scale solar
10            projects; at least 2% from brownfield site
11            photovoltaic projects that are not community
12            renewable generation projects; and the remainder
13            shall be determined through the long-term planning
14            process described in subparagraph (A) of this
15            paragraph (1).
16            (iii) For purposes of this Section:
17            "New wind projects" means wind renewable energy
18        facilities that are energized after June 1, 2017 for
19        the delivery year commencing June 1, 2017 or within 3
20        years after the date the Commission approves contracts
21        for subsequent delivery years.
22            "New photovoltaic projects" means photovoltaic
23        renewable energy facilities that are energized after
24        June 1, 2017. Photovoltaic projects developed under
25        Section 1-56 of this Act shall not apply towards the
26        new photovoltaic project requirements in this

 

 

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1        subparagraph (C).
2            For purposes of calculating whether the Agency has
3        procured enough new wind and solar renewable energy
4        credits required by this subparagraph (C), renewable
5        energy facilities that have a multi-year renewable
6        energy credit delivery contract with the utility
7        through at least delivery year 2030 shall be
8        considered new, however no renewable energy credits
9        from contracts entered into before June 1, 2021 shall
10        be used to calculate whether the Agency has procured
11        the correct proportion of new wind and new solar
12        contracts described in this subparagraph (C) for
13        delivery year 2021 and thereafter.
14        (D) Renewable energy credits shall be cost effective.
15    For purposes of this subsection (c), "cost effective"
16    means that the costs of procuring renewable energy
17    resources do not cause the limit stated in subparagraph
18    (E) of this paragraph (1) to be exceeded and, for
19    renewable energy credits procured through a competitive
20    procurement event, do not exceed benchmarks based on
21    market prices for like products in the region. For
22    purposes of this subsection (c), "like products" means
23    contracts for renewable energy credits from the same or
24    substantially similar technology, same or substantially
25    similar vintage (new or existing), the same or
26    substantially similar quantity, and the same or

 

 

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

 

 

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1    ending immediately prior to the procurement, and, for
2    delivery years commencing on and after June 1, 2017, the
3    required procurement of cost-effective renewable energy
4    resources for a particular year shall be measured as a
5    percentage of the actual amount of electricity
6    (megawatt-hours) delivered by the electric utility in the
7    delivery year ending immediately prior to the procurement,
8    to all retail customers in its service territory. For
9    purposes of this subsection (c), the amount paid per
10    kilowatthour means the total amount paid for electric
11    service expressed on a per kilowatthour basis. For
12    purposes of this subsection (c), the total amount paid for
13    electric service includes without limitation amounts paid
14    for supply, transmission, capacity, distribution,
15    surcharges, and add-on taxes.
16        Notwithstanding the requirements of this subsection
17    (c), the total of renewable energy resources procured
18    under the procurement plan for any single year shall be
19    subject to the limitations of this subparagraph (E). Such
20    procurement shall be reduced for all retail customers
21    based on the amount necessary to limit the annual
22    estimated average net increase due to the costs of these
23    resources included in the amounts paid by eligible retail
24    customers in connection with electric service to no more
25    than 4.25% the greater of 2.015% of the amount paid per
26    kilowatthour by those customers during the year ending May

 

 

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1    31, 2009 2007 or the incremental amount per kilowatthour
2    paid for these resources in 2011. To arrive at a maximum
3    dollar amount of renewable energy resources to be procured
4    for the particular delivery year, the resulting per
5    kilowatthour amount shall be applied to the actual amount
6    of kilowatthours of electricity delivered, or applicable
7    portion of such amount as specified in paragraph (1) of
8    this subsection (c), as applicable, by the electric
9    utility in the delivery year immediately prior to the
10    procurement to all retail customers in its service
11    territory. The calculations required by this subparagraph
12    (E) shall be made only once for each delivery year at the
13    time that the renewable energy resources are procured.
14    Once the determination as to the amount of renewable
15    energy resources to procure is made based on the
16    calculations set forth in this subparagraph (E) and the
17    contracts procuring those amounts are executed, no
18    subsequent rate impact determinations shall be made and no
19    adjustments to those contract amounts shall be allowed.
20    All costs incurred under such contracts shall be fully
21    recoverable by the electric utility as provided in this
22    Section.
23        (F) If the limitation on the amount of renewable
24    energy resources procured in subparagraph (E) of this
25    paragraph (1) prevents the Agency from meeting all of the
26    goals in this subsection (c), the Agency's long-term plan

 

 

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1    shall prioritize compliance with the requirements of this
2    subsection (c) regarding renewable energy credits in the
3    following order:
4            (i) renewable energy credits under existing
5        contractual obligations as of June 1, 2021;
6            (i-5) funding for the Illinois Solar for All
7        Program, as described in subparagraph (O) of this
8        paragraph (1);
9            (ii) renewable energy credits necessary to comply
10        with the new wind and new photovoltaic procurement
11        requirements described in items (i) through (iii) of
12        subparagraph (C) of this paragraph (1); and
13            (iii) renewable energy credits necessary to meet
14        the remaining requirements of this subsection (c).
15        (G) The following provisions shall apply to the
16    Agency's procurement of renewable energy credits under
17    this subsection (c):
18            (i) Notwithstanding whether a long-term renewable
19        resources procurement plan has been approved, the
20        Agency shall conduct an initial forward procurement
21        for renewable energy credits from new utility-scale
22        wind projects within 160 days after June 1, 2017 (the
23        effective date of Public Act 99-906). For the purposes
24        of this initial forward procurement, the Agency shall
25        solicit 15-year contracts for delivery of 1,000,000
26        renewable energy credits delivered annually from new

 

 

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

 

 

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1        2019, if available, but not later than June 1, 2021,
2        unless the project has delays in the establishment of
3        an operating interconnection with the applicable
4        transmission or distribution system as a result of the
5        actions or inactions of the transmission or
6        distribution provider, or other causes for force
7        majeure as outlined in the procurement contract, in
8        which case, not later than June 1, 2022. The Agency may
9        structure this initial procurement in one or more
10        discrete procurement events. Payments to suppliers of
11        renewable energy credits shall commence upon delivery.
12        Renewable energy credits procured under this initial
13        procurement shall be included in the Agency's
14        long-term plan and shall apply to all renewable energy
15        goals in this subsection (c).
16            (iii) Notwithstanding whether the Commission has
17        approved the periodic long-term renewable resources
18        procurement plan revision described in Section
19        16-111.5 of the Public Utilities Act, the Agency shall
20        conduct at least one subsequent forward procurement
21        for renewable energy credits from new utility-scale
22        wind projects, new utility-scale solar projects, and
23        new brownfield site photovoltaic projects within 240
24        days after the effective date of this amendatory Act
25        of the 102nd General Assembly in quantities necessary
26        to meet the requirements of subparagraph (C) of this

 

 

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1        paragraph (1) through the delivery year beginning June
2        1, 2021. Subsequent forward procurements for
3        utility-scale wind projects shall solicit at least
4        1,000,000 renewable energy credits delivered annually
5        per procurement event and shall be planned, scheduled,
6        and designed such that the cumulative amount of
7        renewable energy credits delivered from all new wind
8        projects in each delivery year shall not exceed the
9        Agency's projection of the cumulative amount of
10        renewable energy credits that will be delivered from
11        all new photovoltaic projects, including utility-scale
12        and distributed photovoltaic devices, in the same
13        delivery year at the time scheduled for wind contract
14        delivery.
15            (iv) Notwithstanding whether the Commission has
16        approved the periodic long-term renewable resources
17        procurement plan revision described in Section
18        16-111.5 of the Public Utilities Act, the Agency shall
19        open capacity for each category in the Adjustable
20        Block program within 90 days after the effective date
21        of this amendatory Act of the 102nd General Assembly
22        manner:
23                (1) The Agency shall open the first block of
24            annual capacity for the category described in item
25            (i) of subparagraph (K) of this paragraph (1). The
26            first block of annual capacity for item (i) shall

 

 

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1            be for at least 75 megawatts of total nameplate
2            capacity. The price of the renewable energy credit
3            for this block of capacity shall be 4% less than
4            the price of the last open block in this category.
5            Projects on a waitlist shall be awarded contracts
6            first in the order in which they appear on the
7            waitlist. Notwithstanding anything to the
8            contrary, for those renewable energy credits that
9            qualify and are procured under this subitem (1) of
10            this item (iv), the renewable energy credit
11            delivery contract value shall be paid in full,
12            based on the estimated generation during the first
13            15 years of operation, by the contracting
14            utilities at the time that the facility producing
15            the renewable energy credits is interconnected at
16            the distribution system level of the utility and
17            verified as energized and in compliance by the
18            Program Administrator. The electric utility shall
19            receive and retire all renewable energy credits
20            generated by the project for the first 15 years of
21            operation. Renewable energy credits generated by
22            the project thereafter shall not be transferred
23            under the renewable energy credit delivery
24            contract with the counterparty electric utility.
25                (2) The Agency shall open the first block of
26            annual capacity for the category described in item

 

 

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1            (ii) of subparagraph (K) of this paragraph (1).
2            The first block of annual capacity for item (ii)
3            shall be for at least 75 megawatts of total
4            nameplate capacity.
5                    (A) The price of the renewable energy
6                credit for any project on a waitlist for this
7                category before the opening of this block
8                shall be 4% less than the price of the last
9                open block in this category. Projects on the
10                waitlist shall be awarded contracts first in
11                the order in which they appear on the
12                waitlist. Any projects that are less than or
13                equal to 25 kilowatts in size on the waitlist
14                for this capacity shall be moved to the
15                waitlist for paragraph (1) of this item (iv).
16                Notwithstanding anything to the contrary,
17                projects that were on the waitlist prior to
18                opening of this block shall not be required to
19                be in compliance with the requirements of
20                subparagraph (Q) of this paragraph (1) of this
21                subsection (c). Notwithstanding anything to
22                the contrary, for those renewable energy
23                credits procured from projects that were on
24                the waitlist for this category before the
25                opening of this block 20% of the renewable
26                energy credit delivery contract value, based

 

 

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1                on the estimated generation during the first
2                15 years of operation, shall be paid by the
3                contracting utilities at the time that the
4                facility producing the renewable energy
5                credits is interconnected at the distribution
6                system level of the utility and verified as
7                energized by the Program Administrator. The
8                remaining portion shall be paid ratably over
9                the subsequent 4-year period. The electric
10                utility shall receive and retire all renewable
11                energy credits generated by the project during
12                the first 15 years of operation. Renewable
13                energy credits generated by the project
14                thereafter shall not be transferred under the
15                renewable energy credit delivery contract with
16                the counterparty electric utility.
17                    (B) The price of renewable energy credits
18                for any project not on the waitlist for this
19                category before the opening of the block shall
20                be determined and published by the Agency.
21                Projects not on a waitlist as of the opening
22                of this block shall be subject to the
23                requirements of subparagraph (Q) of this
24                paragraph (1), as applicable. Projects not on
25                a waitlist as of the opening of this block
26                shall be subject to the contract provisions

 

 

SB2408 Enrolled- 345 -LRB102 11366 BMS 16699 b

1                outlined in item (iii) of subparagraph (L) of
2                this paragraph (1). The Agency shall strive to
3                publish updated prices and an updated
4                renewable energy credit delivery contract as
5                quickly as possible.
6                (3) For opening the first 2 blocks of annual
7            capacity for projects participating in item (iii)
8            of subparagraph (K) of paragraph (1) of subsection
9            (c), projects shall be selected exclusively from
10            those projects on the ordinal waitlists of
11            community renewable generation projects
12            established by the Agency based on the status of
13            those ordinal waitlists as of December 31, 2020,
14            and only those projects previously determined to
15            be eligible for the Agency's April 2019 community
16            solar project selection process.
17                The first 2 blocks of annual capacity for item
18            (iii) shall be for 250 megawatts of total
19            nameplate capacity, with both blocks opening
20            simultaneously under the schedule outlined in the
21            paragraphs below. Projects shall be selected as
22            follows:
23                    (A) The geographic balance of selected
24                projects shall follow the Group classification
25                found in the Agency's Revised Long-Term
26                Renewable Resources Procurement Plan, with 70%

 

 

SB2408 Enrolled- 346 -LRB102 11366 BMS 16699 b

1                of capacity allocated to projects on the Group
2                B waitlist and 30% of capacity allocated to
3                projects on the Group A waitlist.
4                    (B) Contract awards for waitlisted
5                projects shall be allocated proportionate to
6                the total nameplate capacity amount across
7                both ordinal waitlists associated with that
8                applicant firm or its affiliates, subject to
9                the following conditions.
10                        (i) Each applicant firm having a
11                    waitlisted project eligible for selection
12                    shall receive no less than 500 kilowatts
13                    in awarded capacity across all groups, and
14                    no approved vendor may receive more than
15                    20% of each Group's waitlist allocation.
16                        (ii) Each applicant firm, upon
17                    receiving an award of program capacity
18                    proportionate to its waitlisted capacity,
19                    may then determine which waitlisted
20                    projects it chooses to be selected for a
21                    contract award up to that capacity amount.
22                        (iii) Assuming all other program
23                    requirements are met, applicant firms may
24                    adjust the nameplate capacity of applicant
25                    projects without losing waitlist
26                    eligibility, so long as no project is

 

 

SB2408 Enrolled- 347 -LRB102 11366 BMS 16699 b

1                    greater than 2,000 kilowatts in size.
2                        (iv) Assuming all other program
3                    requirements are met, applicant firms may
4                    adjust the expected production associated
5                    with applicant projects, subject to
6                    verification by the Program Administrator.
7                    (C) After a review of affiliate
8                information and the current ordinal waitlists,
9                the Agency shall announce the nameplate
10                capacity award amounts associated with
11                applicant firms no later than 90 days after
12                the effective date of this amendatory Act of
13                the 102nd General Assembly.
14                    (D) Applicant firms shall submit their
15                portfolio of projects used to satisfy those
16                contract awards no less than 90 days after the
17                Agency's announcement. The total nameplate
18                capacity of all projects used to satisfy that
19                portfolio shall be no greater than the
20                Agency's nameplate capacity award amount
21                associated with that applicant firm. An
22                applicant firm may decline, in whole or in
23                part, its nameplate capacity award without
24                penalty, with such unmet capacity rolled over
25                to the next block opening for project
26                selection under item (iii) of subparagraph (K)

 

 

SB2408 Enrolled- 348 -LRB102 11366 BMS 16699 b

1                of this subsection (c). Any projects not
2                included in an applicant firm's portfolio may
3                reapply without prejudice upon the next block
4                reopening for project selection under item
5                (iii) of subparagraph (K) of this subsection
6                (c).
7                    (E) The renewable energy credit delivery
8                contract shall be subject to the contract and
9                payment terms outlined in item (iv) of
10                subparagraph (L) of this subsection (c).
11                Contract instruments used for this
12                subparagraph shall contain the following
13                terms:
14                        (i) Renewable energy credit prices
15                    shall be fixed, without further adjustment
16                    under any other provision of this Act or
17                    for any other reason, at 10% lower than
18                    prices applicable to the last open block
19                    for this category, inclusive of any adders
20                    available for achieving a minimum of 50%
21                    of subscribers to the project's nameplate
22                    capacity being residential or small
23                    commercial customers with subscriptions of
24                    below 25 kilowatts in size;
25                        (ii) A requirement that a minimum of
26                    50% of subscribers to the project's

 

 

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1                    nameplate capacity be residential or small
2                    commercial customers with subscriptions of
3                    below 25 kilowatts in size;
4                        (iii) Permission for the ability of a
5                    contract holder to substitute projects
6                    with other waitlisted projects without
7                    penalty should a project receive a
8                    non-binding estimate of costs to construct
9                    the interconnection facilities and any
10                    required distribution upgrades associated
11                    with that project of greater than 30 cents
12                    per watt AC of that project's nameplate
13                    capacity. In developing the applicable
14                    contract instrument, the Agency may
15                    consider whether other circumstances
16                    outside of the control of the applicant
17                    firm should also warrant project
18                    substitution rights.
19                    The Agency shall publish a finalized
20                updated renewable energy credit delivery
21                contract developed consistent with these terms
22                and conditions no less than 30 days before
23                applicant firms must submit their portfolio of
24                projects pursuant to item (D).
25                    (F) To be eligible for an award, the
26                applicant firm shall certify that not less

 

 

SB2408 Enrolled- 350 -LRB102 11366 BMS 16699 b

1                than prevailing wage, as determined pursuant
2                to the Illinois Prevailing Wage Act, was or
3                will be paid to employees who are engaged in
4                construction activities associated with a
5                selected project.
6                (4) The Agency shall open the first block of
7            annual capacity for the category described in item
8            (iv) of subparagraph (K) of this paragraph (1).
9            The first block of annual capacity for item (iv)
10            shall be for at least 50 megawatts of total
11            nameplate capacity. Renewable energy credit prices
12            shall be fixed, without further adjustment under
13            any other provision of this Act or for any other
14            reason, at the price in the last open block in the
15            category described in item (ii) of subparagraph
16            (K) of this paragraph (1). Pricing for future
17            blocks of annual capacity for this category may be
18            adjusted in the Agency's second revision to its
19            Long-Term Renewable Resources Procurement Plan.
20            Projects in this category shall be subject to the
21            contract terms outlined in item (iv) of
22            subparagraph (L) of this paragraph (1).
23                (5) The Agency shall open the equivalent of 2
24            years of annual capacity for the category
25            described in item (v) of subparagraph (K) of this
26            paragraph (1). The first block of annual capacity

 

 

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1            for item (v) shall be for at least 10 megawatts of
2            total nameplate capacity. Notwithstanding the
3            provisions of item (v) of subparagraph (K) of this
4            paragraph (1), for the purpose of this initial
5            block, the agency shall accept new project
6            applications intended to increase the diversity of
7            areas hosting community solar projects, the
8            business models of projects, and the size of
9            projects, as described by the Agency in its
10            long-term renewable resources procurement plan
11            that is approved as of the effective date of this
12            amendatory Act of the 102nd General Assembly.
13            Projects in this category shall be subject to the
14            contract terms outlined in item (iii) of
15            subsection (L) of this paragraph (1).
16                (6) The Agency shall open the first blocks of
17            annual capacity for the category described in item
18            (vi) of subparagraph (K) of this paragraph (1),
19            with allocations of capacity within the block
20            generally matching the historical share of block
21            capacity allocated between the category described
22            in items (i) and (ii) of subparagraph (K) of this
23            paragraph (1). The first two blocks of annual
24            capacity for item (vi) shall be for at least 75
25            megawatts of total nameplate capacity. The price
26            of renewable energy credits for the blocks of

 

 

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1            capacity shall be 4% less than the price of the
2            last open blocks in the categories described in
3            items (i) and (ii) of subparagraph (K) of this
4            paragraph (1). Pricing for future blocks of annual
5            capacity for this category may be adjusted in the
6            Agency's second revision to its Long-Term
7            Renewable Resources Procurement Plan. Projects in
8            this category shall be subject to the applicable
9            contract terms outlined in items (ii) and (iii) of
10            subparagraph (L) of this paragraph (1). If, at any
11            time after the time set for delivery of renewable
12            energy credits pursuant to the initial
13            procurements in items (i) and (ii) of this
14            subparagraph (G), the cumulative amount of
15            renewable energy credits projected to be delivered
16            from all new wind projects in a given delivery
17            year exceeds the cumulative amount of renewable
18            energy credits projected to be delivered from all
19            new photovoltaic projects in that delivery year by
20            200,000 or more renewable energy credits, then the
21            Agency shall within 60 days adjust the procurement
22            programs in the long-term renewable resources
23            procurement plan to ensure that the projected
24            cumulative amount of renewable energy credits to
25            be delivered from all new wind projects does not
26            exceed the projected cumulative amount of

 

 

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1            renewable energy credits to be delivered from all
2            new photovoltaic projects by 200,000 or more
3            renewable energy credits, provided that nothing in
4            this Section shall preclude the projected
5            cumulative amount of renewable energy credits to
6            be delivered from all new photovoltaic projects
7            from exceeding the projected cumulative amount of
8            renewable energy credits to be delivered from all
9            new wind projects in each delivery year and
10            provided further that nothing in this item (iv)
11            shall require the curtailment of an executed
12            contract. The Agency shall update, on a quarterly
13            basis, its projection of the renewable energy
14            credits to be delivered from all projects in each
15            delivery year. Notwithstanding anything to the
16            contrary, the Agency may adjust the timing of
17            procurement events conducted under this
18            subparagraph (G). The long-term renewable
19            resources procurement plan shall set forth the
20            process by which the adjustments may be made.
21            (v) Upon the effective date of this amendatory Act
22        of the 102nd General Assembly, for all competitive
23        procurements and any procurements of renewable energy
24        credit from new utility-scale wind and new
25        utility-scale photovoltaic projects, the Agency shall
26        procure indexed renewable energy credits and direct

 

 

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1        respondents to offer a strike price.
2                (1) The purchase price of the indexed
3            renewable energy credit payment shall be
4            calculated for each settlement period. That
5            payment, for any settlement period, shall be equal
6            to the difference resulting from subtracting the
7            strike price from the index price for that
8            settlement period. If this difference results in a
9            negative number, the indexed REC counterparty
10            shall owe the seller the absolute value multiplied
11            by the quantity of energy produced in the relevant
12            settlement period. If this difference results in a
13            positive number, the seller shall owe the indexed
14            REC counterparty this amount multiplied by the
15            quantity of energy produced in the relevant
16            settlement period.
17                (2) Parties shall cash settle every month,
18            summing up all settlements (both positive and
19            negative, if applicable) for the prior month.
20                (3) To ensure funding in the annual budget
21            established under subparagraph (E) for indexed
22            renewable energy credit procurements for each year
23            of the term of such contracts, which must have a
24            minimum tenure of 20 calendar years, the
25            procurement administrator, Agency, Commission
26            staff, and procurement monitor shall quantify the

 

 

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1            annual cost of the contract by utilizing an
2            industry-standard, third-party forward price curve
3            for energy at the appropriate hub or load zone,
4            including the estimated magnitude and timing of
5            the price effects related to federal carbon
6            controls. Each forward price curve shall contain a
7            specific value of the forecasted market price of
8            electricity for each annual delivery year of the
9            contract. For procurement planning purposes, the
10            impact on the annual budget for the cost of
11            indexed renewable energy credits for each delivery
12            year shall be determined as the expected annual
13            contract expenditure for that year, equaling the
14            difference between (i) the sum across all relevant
15            contracts of the applicable strike price
16            multiplied by contract quantity and (ii) the sum
17            across all relevant contracts of the forward price
18            curve for the applicable load zone for that year
19            multiplied by contract quantity. The contracting
20            utility shall not assume an obligation in excess
21            of the estimated annual cost of the contracts for
22            indexed renewable energy credits. Forward curves
23            shall be revised on an annual basis as updated
24            forward price curves are released and filed with
25            the Commission in the proceeding approving the
26            Agency's most recent long-term renewable resources

 

 

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1            procurement plan. If the expected contract spend
2            is higher or lower than the total quantity of
3            contracts multiplied by the forward price curve
4            value for that year, the forward price curve shall
5            be updated by the procurement administrator, in
6            consultation with the Agency, Commission staff,
7            and procurement monitors, using then-currently
8            available price forecast data and additional
9            budget dollars shall be obligated or reobligated
10            as appropriate.
11                (4) To ensure that indexed renewable energy
12            credit prices remain predictable and affordable,
13            the Agency may consider the institution of a price
14            collar on REC prices paid under indexed renewable
15            energy credit procurements establishing floor and
16            ceiling REC prices applicable to indexed REC
17            contract prices. Any price collars applicable to
18            indexed REC procurements shall be proposed by the
19            Agency through its long-term renewable resources
20            procurement plan.
21            (vi) (v) All procurements under this subparagraph
22        (G) shall comply with the geographic requirements in
23        subparagraph (I) of this paragraph (1) and shall
24        follow the procurement processes and procedures
25        described in this Section and Section 16-111.5 of the
26        Public Utilities Act to the extent practicable, and

 

 

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1        these processes and procedures may be expedited to
2        accommodate the schedule established by this
3        subparagraph (G).
4        (H) The procurement of renewable energy resources for
5    a given delivery year shall be reduced as described in
6    this subparagraph (H) if an alternative retail electric
7    supplier meets the requirements described in this
8    subparagraph (H).
9            (i) Within 45 days after June 1, 2017 (the
10        effective date of Public Act 99-906), an alternative
11        retail electric supplier or its successor shall submit
12        an informational filing to the Illinois Commerce
13        Commission certifying that, as of December 31, 2015,
14        the alternative retail electric supplier owned one or
15        more electric generating facilities that generates
16        renewable energy resources as defined in Section 1-10
17        of this Act, provided that such facilities are not
18        powered by wind or photovoltaics, and the facilities
19        generate one renewable energy credit for each
20        megawatthour of energy produced from the facility.
21            The informational filing shall identify each
22        facility that was eligible to satisfy the alternative
23        retail electric supplier's obligations under Section
24        16-115D of the Public Utilities Act as described in
25        this item (i).
26            (ii) For a given delivery year, the alternative

 

 

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1        retail electric supplier may elect to supply its
2        retail customers with renewable energy credits from
3        the facility or facilities described in item (i) of
4        this subparagraph (H) that continue to be owned by the
5        alternative retail electric supplier.
6            (iii) The alternative retail electric supplier
7        shall notify the Agency and the applicable utility, no
8        later than February 28 of the year preceding the
9        applicable delivery year or 15 days after June 1, 2017
10        (the effective date of Public Act 99-906), whichever
11        is later, of its election under item (ii) of this
12        subparagraph (H) to supply renewable energy credits to
13        retail customers of the utility. Such election shall
14        identify the amount of renewable energy credits to be
15        supplied by the alternative retail electric supplier
16        to the utility's retail customers and the source of
17        the renewable energy credits identified in the
18        informational filing as described in item (i) of this
19        subparagraph (H), subject to the following
20        limitations:
21                For the delivery year beginning June 1, 2018,
22            the maximum amount of renewable energy credits to
23            be supplied by an alternative retail electric
24            supplier under this subparagraph (H) shall be 68%
25            multiplied by 25% multiplied by 14.5% multiplied
26            by the amount of metered electricity

 

 

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1            (megawatt-hours) delivered by the alternative
2            retail electric supplier to Illinois retail
3            customers during the delivery year ending May 31,
4            2016.
5                For delivery years beginning June 1, 2019 and
6            each year thereafter, the maximum amount of
7            renewable energy credits to be supplied by an
8            alternative retail electric supplier under this
9            subparagraph (H) shall be 68% multiplied by 50%
10            multiplied by 16% multiplied by the amount of
11            metered electricity (megawatt-hours) delivered by
12            the alternative retail electric supplier to
13            Illinois retail customers during the delivery year
14            ending May 31, 2016, provided that the 16% value
15            shall increase by 1.5% each delivery year
16            thereafter to 25% by the delivery year beginning
17            June 1, 2025, and thereafter the 25% value shall
18            apply to each delivery year.
19            For each delivery year, the total amount of
20        renewable energy credits supplied by all alternative
21        retail electric suppliers under this subparagraph (H)
22        shall not exceed 9% of the Illinois target renewable
23        energy credit quantity. The Illinois target renewable
24        energy credit quantity for the delivery year beginning
25        June 1, 2018 is 14.5% multiplied by the total amount of
26        metered electricity (megawatt-hours) delivered in the

 

 

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

 

 

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1        credits supplied by alternative retail electric
2        suppliers under this subparagraph (H).
3        (I) The Agency shall design its long-term renewable
4    energy procurement plan to maximize the State's interest
5    in the health, safety, and welfare of its residents,
6    including but not limited to minimizing sulfur dioxide,
7    nitrogen oxide, particulate matter and other pollution
8    that adversely affects public health in this State,
9    increasing fuel and resource diversity in this State,
10    enhancing the reliability and resiliency of the
11    electricity distribution system in this State, meeting
12    goals to limit carbon dioxide emissions under federal or
13    State law, and contributing to a cleaner and healthier
14    environment for the citizens of this State. In order to
15    further these legislative purposes, renewable energy
16    credits shall be eligible to be counted toward the
17    renewable energy requirements of this subsection (c) if
18    they are generated from facilities located in this State.
19    The Agency may qualify renewable energy credits from
20    facilities located in states adjacent to Illinois or
21    renewable energy credits associated with the electricity
22    generated by a utility-scale wind energy facility or
23    utility-scale photovoltaic facility and transmitted by a
24    qualifying direct current project described in subsection
25    (b-5) of Section 8-406 of the Public Utilities Act to a
26    delivery point on the electric transmission grid located

 

 

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1    in this State or a state adjacent to Illinois, if the
2    generator demonstrates and the Agency determines that the
3    operation of such facility or facilities will help promote
4    the State's interest in the health, safety, and welfare of
5    its residents based on the public interest criteria
6    described above. For the purposes of this Section,
7    renewable resources that are delivered via a high voltage
8    direct current converter station located in Illinois shall
9    be deemed generated in Illinois at the time and location
10    the energy is converted to alternating current by the high
11    voltage direct current converter station if the high
12    voltage direct current transmission line: (i) after the
13    effective date of this amendatory Act of the 102nd General
14    Assembly, was constructed with a project labor agreement;
15    (ii) is capable of transmitting electricity at 525kv;
16    (iii) has an Illinois converter station located and
17    interconnected in the region of the PJM Interconnection,
18    LLC; (iv) does not operate as a public utility; and (v) if
19    the high voltage direct current transmission line was
20    energized after June 1, 2023. To ensure that the public
21    interest criteria are applied to the procurement and given
22    full effect, the Agency's long-term procurement plan shall
23    describe in detail how each public interest factor shall
24    be considered and weighted for facilities located in
25    states adjacent to Illinois.
26        (J) In order to promote the competitive development of

 

 

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1    renewable energy resources in furtherance of the State's
2    interest in the health, safety, and welfare of its
3    residents, renewable energy credits shall not be eligible
4    to be counted toward the renewable energy requirements of
5    this subsection (c) if they are sourced from a generating
6    unit whose costs were being recovered through rates
7    regulated by this State or any other state or states on or
8    after January 1, 2017. Each contract executed to purchase
9    renewable energy credits under this subsection (c) shall
10    provide for the contract's termination if the costs of the
11    generating unit supplying the renewable energy credits
12    subsequently begin to be recovered through rates regulated
13    by this State or any other state or states; and each
14    contract shall further provide that, in that event, the
15    supplier of the credits must return 110% of all payments
16    received under the contract. Amounts returned under the
17    requirements of this subparagraph (J) shall be retained by
18    the utility and all of these amounts shall be used for the
19    procurement of additional renewable energy credits from
20    new wind or new photovoltaic resources as defined in this
21    subsection (c). The long-term plan shall provide that
22    these renewable energy credits shall be procured in the
23    next procurement event.
24        Notwithstanding the limitations of this subparagraph
25    (J), renewable energy credits sourced from generating
26    units that are constructed, purchased, owned, or leased by

 

 

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1    an electric utility as part of an approved project,
2    program, or pilot under Section 1-56 of this Act shall be
3    eligible to be counted toward the renewable energy
4    requirements of this subsection (c), regardless of how the
5    costs of these units are recovered. As long as a
6    generating unit or an identifiable portion of a generating
7    unit has not had and does not have its costs recovered
8    through rates regulated by this State or any other state,
9    HVDC renewable energy credits associated with that
10    generating unit or identifiable portion thereof shall be
11    eligible to be counted toward the renewable energy
12    requirements of this subsection (c).
13        (K) The long-term renewable resources procurement plan
14    developed by the Agency in accordance with subparagraph
15    (A) of this paragraph (1) shall include an Adjustable
16    Block program for the procurement of renewable energy
17    credits from new photovoltaic projects that are
18    distributed renewable energy generation devices or new
19    photovoltaic community renewable generation projects. The
20    Adjustable Block program shall be generally designed to
21    provide for the steady, predictable, and sustainable
22    growth of new solar photovoltaic development in Illinois.
23    To this end, the Adjustable Block program shall provide a
24    transparent annual schedule of prices and quantities to
25    enable the photovoltaic market to scale up and for
26    renewable energy credit prices to adjust at a predictable

 

 

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1    rate over time. The prices set by the Adjustable Block
2    program can be reflected as a set value or as the product
3    of a formula.
4        The Adjustable Block program shall include for each
5    category of eligible projects for each delivery year: a
6    single block of nameplate capacity, a price for renewable
7    energy credits within that block, and the terms and
8    conditions for securing a spot on a waitlist once the
9    block is : a schedule of standard block purchase prices to
10    be offered; a series of steps, with associated nameplate
11    capacity and purchase prices that adjust from step to
12    step; and automatic opening of the next step as soon as the
13    nameplate capacity and available purchase prices for an
14    open step are fully committed or reserved. Except as
15    outlined below, the waitlist of projects in a given year
16    will carry over to apply to the subsequent year when
17    another block is opened. Only projects energized on or
18    after June 1, 2017 shall be eligible for the Adjustable
19    Block program. For each category for each delivery year
20    block group the Agency shall determine the number of
21    blocks, the amount of generation capacity in each block,
22    and the purchase price for each block, provided that the
23    purchase price provided and the total amount of generation
24    in all blocks for all categories block groups shall be
25    sufficient to meet the goals in this subsection (c). The
26    Agency shall strive to issue a single block sized to

 

 

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

 

 

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1            (ii) At least 20% 25% from distributed renewable
2        energy generation devices with a nameplate capacity of
3        more than 25 10 kilowatts and no more than 5,000 2,000
4        kilowatts. The Agency may create sub-categories within
5        this category to account for the differences between
6        projects for small commercial customers, large
7        commercial customers, and public or non-profit
8        customers.
9            (iii) At least 30% 25% from photovoltaic community
10        renewable generation projects. Capacity for this
11        category for the first 2 delivery years after the
12        effective date of this amendatory Act of the 102nd
13        General Assembly shall be allocated to waitlist
14        projects as provided in paragraph (3) of item (iv) of
15        subparagraph (G). Starting in the third delivery year
16        after the effective date of this amendatory Act of the
17        102nd General Assembly or earlier if the Agency
18        determines there is additional capacity needed for to
19        meet previous delivery year requirements, the
20        following shall apply:
21                (1) the Agency shall select projects on a
22            first-come, first-serve basis, however the Agency
23            may suggest additional methods to prioritize
24            projects that are submitted at the same time;
25                (2) projects shall have subscriptions of 25 kW
26            or less for at least 50% of the facility's

 

 

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1            nameplate capacity and the Agency shall price the
2            renewable energy credits with that as a factor;
3                (3) projects shall not be colocated with one
4            or more other community renewable generation
5            projects, as defined in the Agency's first revised
6            long-term renewable resources procurement plan
7            approved by the Commission on February 18, 2020,
8            such that the aggregate nameplate capacity exceeds
9            5,000 kilowatts; and
10                (4) projects greater than 2 MW may not apply
11            until after the approval of the Agency's revised
12            Long-Term Renewable Resources Procurement Plan
13            after the effective date of this amendatory Act of
14            the 102nd General Assembly.
15            (iv) At least 15% from distributed renewable
16        generation devices or photovoltaic community renewable
17        generation projects installed at public schools. The
18        Agency may create subcategories within this category
19        to account for the differences between project size or
20        location. Projects located within environmental
21        justice communities or within Organizational Units
22        that fall within Tier 1 or Tier 2 shall be given
23        priority. Each of the Agency's periodic updates to its
24        long-term renewable resources procurement plan to
25        incorporate the procurement described in this
26        subparagraph (iv) shall also include the proposed

 

 

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1        quantities or blocks, pricing, and contract terms
2        applicable to the procurement as indicated herein. In
3        each such update and procurement, the Agency shall set
4        the renewable energy credit price and establish
5        payment terms for the renewable energy credits
6        procured pursuant to this subparagraph (iv) that make
7        it feasible and affordable for public schools to
8        install photovoltaic distributed renewable energy
9        devices on their premises, including, but not limited
10        to, those public schools subject to the prioritization
11        provisions of this subparagraph. For the purposes of
12        this item (iv):
13            "Environmental Justice Community" shall have the
14        same meaning set forth in the Agency's long-term
15        renewable resources procurement plan;
16            "Organization Unit", "Tier 1" and "Tier 2" shall
17        have the meanings set for in Section 18-8.15 of the
18        School Code;
19            "Public schools" shall have the meaning set forth
20        in Section 1-3 of the School Code.
21            (v) At least 5% from community-driven community
22        solar projects intended to provide more direct and
23        tangible connection and benefits to the communities
24        which they serve or in which they operate and,
25        additionally, to increase the variety of community
26        solar locations, models, and options in Illinois. As

 

 

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1        part of its long-term renewable resources procurement
2        plan, the Agency shall develop selection criteria for
3        projects participating in this category. Nothing in
4        this Section shall preclude the Agency from creating a
5        selection process that maximizes community ownership
6        and community benefits in selecting projects to
7        receive renewable energy credits. Selection criteria
8        shall include:
9                (1) community ownership or community
10            wealth-building;
11                (2) additional direct and indirect community
12            benefit, beyond project participation as a
13            subscriber, including, but not limited to,
14            economic, environmental, social, cultural, and
15            physical benefits;
16                (3) meaningful involvement in project
17            organization and development by community members
18            or nonprofit organizations or public entities
19            located in or serving the community;
20                (4) engagement in project operations and
21            management by nonprofit organizations, public
22            entities, or community members; and
23                (5) whether a project is developed in response
24            to a site-specific RFP developed by community
25            members or a nonprofit organization or public
26            entity located in or serving the community.

 

 

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1            Selection criteria may also prioritize projects
2        that:
3                (1) are developed in collaboration with or to
4            provide complementary opportunities for the Clean
5            Jobs Workforce Network Program, the Illinois
6            Climate Works Preapprenticeship Program, the
7            Returning Residents Clean Jobs Training Program,
8            the Clean Energy Contractor Incubator Program, or
9            the Clean Energy Primes Contractor Accelerator
10            Program;
11                (2) increase the diversity of locations of
12            community solar projects in Illinois, including by
13            locating in urban areas and population centers;
14                (3) are located in Equity Investment Eligible
15            Communities;
16                (4) are not greenfield projects;
17                (5) serve only local subscribers;
18                (6) have a nameplate capacity that does not
19            exceed 500 kW;
20                (7) are developed by an equity eligible
21            contractor; or
22                (8) otherwise meaningfully advance the goals
23            of providing more direct and tangible connection
24            and benefits to the communities which they serve
25            or in which they operate and increasing the
26            variety of community solar locations, models, and

 

 

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

 

 

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1        benefit from regular use of that facility.
2            Terms and guidance within these criteria that are
3        not defined in this item (v) shall be defined by the
4        Agency, with stakeholder input, during the development
5        of the Agency's long-term renewable resources
6        procurement plan. The Agency shall develop regular
7        opportunities for projects to submit applications for
8        projects under this category, and develop selection
9        criteria that gives preference to projects that better
10        meet individual criteria as well as projects that
11        address a higher number of criteria.
12            (vi) At least 10% from distributed renewable
13        energy generation devices, which includes distributed
14        renewable energy devices with a nameplate capacity
15        under 5,000 kilowatts or photovoltaic community
16        renewable generation projects, from applicants that
17        are equity eligible contractors. The Agency may create
18        subcategories within this category to account for the
19        differences between project size and type. The Agency
20        shall propose to increase the percentage in this item
21        (vi) over time to 40% based on factors, including, but
22        not limited to, the number of equity eligible
23        contractors and capacity used in this item (vi) in
24        previous delivery years.
25            The Agency shall propose a payment structure for
26        contracts executed pursuant to this paragraph under

 

 

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1        which, upon a demonstration of qualification or need,
2        applicant firms are advanced capital disbursed after
3        contract execution but before the contracted project's
4        energization. The amount or percentage of capital
5        advanced prior to project energization shall be
6        sufficient to both cover any increase in development
7        costs resulting from prevailing wage requirements or
8        project-labor agreements, and designed to overcome
9        barriers in access to capital faced by equity eligible
10        contractors. The amount or percentage of advanced
11        capital may vary by subcategory within this category
12        and by an applicant's demonstration of need, with such
13        levels to be established through the Long-Term
14        Renewable Resources Procurement Plan authorized under
15        subparagraph (A) of paragraph (1) of subsection (c) of
16        this Section.
17            Contracts developed featuring capital advanced
18        prior to a project's energization shall feature
19        provisions to ensure both the successful development
20        of applicant projects and the delivery of the
21        renewable energy credits for the full term of the
22        contract, including ongoing collateral requirements
23        and other provisions deemed necessary by the Agency,
24        and may include energization timelines longer than for
25        comparable project types. The percentage or amount of
26        capital advanced prior to project energization shall

 

 

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1        not operate to increase the overall contract value,
2        however contracts executed under this subparagraph may
3        feature renewable energy credit prices higher than
4        those offered to similar projects participating in
5        other categories. Capital advanced prior to
6        energization shall serve to reduce the ratable
7        payments made after energization under items (ii) and
8        (iii) of subparagraph (L) or payments made for each
9        renewable energy credit delivery under item (iv) of
10        subparagraph (L).
11            (vii) (iv) The remaining capacity 25% shall be
12        allocated as specified by the Agency in order to
13        respond to market demand the long-term renewable
14        resources procurement plan. The Agency shall allocate
15        any discretionary capacity prior to the beginning of
16        each delivery year.
17        To the extent there is uncontracted capacity from any
18    block in any of categories (i) through (vi) at the end of a
19    delivery year, the Agency shall redistribute that capacity
20    to one or more other categories giving priority to
21    categories with projects on a waitlist. The redistributed
22    capacity shall be added to the annual capacity in the
23    subsequent delivery year, and the price for renewable
24    energy credits shall be the price for the new delivery
25    year. Redistributed capacity shall not be considered
26    redistributed when determining whether the goals in this

 

 

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1    subsection (K) have been met.
2        Notwithstanding anything to the contrary, as the
3    Agency increases the capacity in item (vi) to 40% over
4    time, the Agency may reduce the capacity of items (i)
5    through (v) proportionate to the capacity of the
6    categories of projects in item (vi), to achieve a balance
7    of project types.
8        The Adjustable Block program shall be designed to
9    ensure that renewable energy credits are procured from
10    photovoltaic distributed renewable energy generation
11    devices and new photovoltaic community renewable energy
12    generation projects in diverse locations and are not
13    concentrated in a few regional geographic areas.
14        (L) Notwithstanding provisions for advancing capital
15    prior to project energization found in item (vi) of
16    subparagraph (K), the The procurement of photovoltaic
17    renewable energy credits under items (i) through (vi) (iv)
18    of subparagraph (K) of this paragraph (1) shall otherwise
19    be subject to the following contract and payment terms:
20        (i) (Blank). The Agency shall procure contracts of at
21        least 15 years in length.
22            (ii) For those renewable energy credits that
23        qualify and are procured under item (i) of
24        subparagraph (K) of this paragraph (1), and any
25        similar category projects that are procured under item
26        (vi) of subparagraph (K) of this paragraph (1) that

 

 

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1        qualify and are procured under item (vi), the contract
2        length shall be 15 years. The renewable energy credit
3        delivery contract value purchase price shall be paid
4        in full, based on the estimated generation during the
5        first 15 years of operation, by the contracting
6        utilities at the time that the facility producing the
7        renewable energy credits is interconnected at the
8        distribution system level of the utility and verified
9        as energized and compliant by the Program
10        Administrator energized. The electric utility shall
11        receive and retire all renewable energy credits
12        generated by the project for the first 15 years of
13        operation. Renewable energy credits generated by the
14        project thereafter shall not be transferred under the
15        renewable energy credit delivery contract with the
16        counterparty electric utility.
17            (iii) For those renewable energy credits that
18        qualify and are procured under item (ii) and (v) (iii)
19        of subparagraph (K) of this paragraph (1) and any like
20        projects similar category that qualify and are
21        procured under item (vi), the contract length shall be
22        15 years. 15% any additional categories of distributed
23        generation included in the long-term renewable
24        resources procurement plan and approved by the
25        Commission, 20 percent of the renewable energy credit
26        delivery contract value, based on the estimated

 

 

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1        generation during the first 15 years of operation,
2        purchase price shall be paid by the contracting
3        utilities at the time that the facility producing the
4        renewable energy credits is interconnected at the
5        distribution system level of the utility and verified
6        as energized and compliant by the Program
7        Administrator. The remaining portion shall be paid
8        ratably over the subsequent 6-year 4-year period. The
9        electric utility shall receive and retire all
10        renewable energy credits generated by the project for
11        the first 15 years of operation. Renewable energy
12        credits generated by the project thereafter shall not
13        be transferred under the renewable energy credit
14        delivery contract with the counterparty electric
15        utility.
16            (iv) For those renewable energy credits that
17        qualify and are procured under items (iii) and (iv) of
18        subparagraph (K) of this paragraph (1), and any like
19        projects that qualify and are procured under item
20        (vi), the renewable energy credit delivery contract
21        length shall be 20 years and shall be paid over the
22        delivery term, not to exceed during each delivery year
23        the contract price multiplied by the estimated annual
24        renewable energy credit generation amount. If
25        generation of renewable energy credits during a
26        delivery year exceeds the estimated annual generation

 

 

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1        amount, the excess renewable energy credits shall be
2        carried forward to future delivery years and shall not
3        expire during the delivery term. If generation of
4        renewable energy credits during a delivery year,
5        including carried forward excess renewable energy
6        credits, if any, is less than the estimated annual
7        generation amount, payments during such delivery year
8        will not exceed the quantity generated plus the
9        quantity carried forward multiplied by the contract
10        price. The electric utility shall receive all
11        renewable energy credits generated by the project
12        during the first 20 years of operation and retire all
13        renewable energy credits paid for under this item (iv)
14        and return at the end of the delivery term all
15        renewable energy credits that were not paid for.
16        Renewable energy credits generated by the project
17        thereafter shall not be transferred under the
18        renewable energy credit delivery contract with the
19        counterparty electric utility. Notwithstanding the
20        preceding, for those projects participating under item
21        (iii) of subparagraph (K), the contract price for a
22        delivery year shall be based on subscription levels as
23        measured on the higher of the first business day of the
24        delivery year or the first business day 6 months after
25        the first business day of the delivery year.
26        Subscription of 90% of nameplate capacity or greater

 

 

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1        shall be deemed to be fully subscribed for the
2        purposes of this item (iv). For projects receiving a
3        20-year delivery contract, REC prices shall be
4        adjusted downward for consistency with the incentive
5        levels previously determined to be necessary to
6        support projects under 15-year delivery contracts,
7        taking into consideration any additional new
8        requirements placed on the projects, including, but
9        not limited to, labor standards.
10            (v) (iv) Each contract shall include provisions to
11        ensure the delivery of the estimated quantity of
12        renewable energy credits and ongoing collateral
13        requirements and other provisions deemed appropriate
14        by the Agency for the full term of the contract.
15            (vi) (v) The utility shall be the counterparty to
16        the contracts executed under this subparagraph (L)
17        that are approved by the Commission under the process
18        described in Section 16-111.5 of the Public Utilities
19        Act. No contract shall be executed for an amount that
20        is less than one renewable energy credit per year.
21            (vii) (vi) If, at any time, approved applications
22        for the Adjustable Block program exceed funds
23        collected by the electric utility or would cause the
24        Agency to exceed the limitation described in
25        subparagraph (E) of this paragraph (1) on the amount
26        of renewable energy resources that may be procured,

 

 

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1        then the Agency may shall consider future uncommitted
2        funds to be reserved for these contracts on a
3        first-come, first-served basis, with the delivery of
4        renewable energy credits required beginning at the
5        time that the reserved funds become available.
6            (viii) (vii) Nothing in this Section shall require
7        the utility to advance any payment or pay any amounts
8        that exceed the actual amount of revenues anticipated
9        to be collected by the utility under paragraph (6) of
10        this subsection (c) and subsection (k) of Section
11        16-108 of the Public Utilities Act inclusive of
12        eligible funds collected in prior years and
13        alternative compliance payments for use by the
14        utility, and contracts executed under this Section
15        shall expressly incorporate this limitation.
16            (ix) Notwithstanding other requirements of this
17        subparagraph (L), no modification shall be required to
18        Adjustable Block program contracts if they were
19        already executed prior to the establishment, approval,
20        and implementation of new contract forms as a result
21        of this amendatory Act of the 102nd General Assembly.
22            (x) Contracts may be assignable, but only to
23        entities first deemed by the Agency to have met
24        program terms and requirements applicable to direct
25        program participation. In developing contracts for the
26        delivery of renewable energy credits, the Agency shall

 

 

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1        be permitted to establish fees applicable to each
2        contract assignment.
3        (M) The Agency shall be authorized to retain one or
4    more experts or expert consulting firms to develop,
5    administer, implement, operate, and evaluate the
6    Adjustable Block program described in subparagraph (K) of
7    this paragraph (1), and the Agency shall retain the
8    consultant or consultants in the same manner, to the
9    extent practicable, as the Agency retains others to
10    administer provisions of this Act, including, but not
11    limited to, the procurement administrator. The selection
12    of experts and expert consulting firms and the procurement
13    process described in this subparagraph (M) are exempt from
14    the requirements of Section 20-10 of the Illinois
15    Procurement Code, under Section 20-10 of that Code. The
16    Agency shall strive to minimize administrative expenses in
17    the implementation of the Adjustable Block program.
18        The Program Administrator may charge application fees
19    to participating firms to cover the cost of program
20    administration. Any application fee amounts shall
21    initially be determined through the long-term renewable
22    resources procurement plan, and modifications to any
23    application fee that deviate more than 25% from the
24    Commission's approved value must be approved by the
25    Commission as a long-term plan revision under Section
26    16-111.5 of the Public Utilities Act. The Agency shall

 

 

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1    consider stakeholder feedback when making adjustments to
2    application fees and shall notify stakeholders in advance
3    of any planned changes.
4        In addition to covering the costs of program
5    administration, the Agency, in conjunction with its
6    Program Administrator, may also use the proceeds of such
7    fees charged to participating firms to support public
8    education and ongoing regional and national coordination
9    with nonprofit organizations, public bodies, and others
10    engaged in the implementation of renewable energy
11    incentive programs or similar initiatives. This work may
12    include developing papers and reports, hosting regional
13    and national conferences, and other work deemed necessary
14    by the Agency to position the State of Illinois as a
15    national leader in renewable energy incentive program
16    development and administration.
17        The Agency and its consultant or consultants shall
18    monitor block activity, share program activity with
19    stakeholders and conduct quarterly regularly scheduled
20    meetings to discuss program activity and market
21    conditions. If necessary, the Agency may make prospective
22    administrative adjustments to the Adjustable Block program
23    design, such as redistributing available funds or making
24    adjustments to purchase prices as necessary to achieve the
25    goals of this subsection (c). Program modifications to any
26    block price, capacity block, or other program element that

 

 

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1    do not deviate from the Commission's approved value by
2    more than 10% 25% shall take effect immediately and are
3    not subject to Commission review and approval. Program
4    modifications to any block price, capacity block, or other
5    program element that deviate more than 10% 25% from the
6    Commission's approved value must be approved by the
7    Commission as a long-term plan amendment under Section
8    16-111.5 of the Public Utilities Act. The Agency shall
9    consider stakeholder feedback when making adjustments to
10    the Adjustable Block design and shall notify stakeholders
11    in advance of any planned changes.
12        The Agency and its program administrators for both the
13    Adjustable Block program and the Illinois Solar for All
14    Program, consistent with the requirements of this
15    subsection (c) and subsection (b) of Section 1-56 of this
16    Act, shall propose the Adjustable Block program terms,
17    conditions, and requirements, including the prices to be
18    paid for renewable energy credits, where applicable, and
19    requirements applicable to participating entities and
20    project applications, through the development, review, and
21    approval of the Agency's long-term renewable resources
22    procurement plan described in this subsection (c) and
23    paragraph (5) of subsection (b) of Section 16-111.5 of the
24    Public Utilities Act. Terms, conditions, and requirements
25    for program participation shall include the following:
26            (i) The Agency shall establish a registration

 

 

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1        process for entities seeking to qualify for
2        program-administered incentive funding and establish
3        baseline qualifications for vendor approval. The
4        Agency must maintain a list of approved entities on
5        each program's website, and may revoke a vendor's
6        ability to receive program-administered incentive
7        funding status upon a determination that the vendor
8        failed to comply with contract terms, the law, or
9        other program requirements.
10            (ii) The Agency shall establish program
11        requirements and minimum contract terms to ensure
12        projects are properly installed and produce their
13        expected amounts of energy. Program requirements may
14        include on-site inspections and photo documentation of
15        projects under construction. The Agency may require
16        repairs, alterations, or additions to remedy any
17        material deficiencies discovered. Vendors who have a
18        disproportionately high number of deficient systems
19        may lose their eligibility to continue to receive
20        State-administered incentive funding through Agency
21        programs and procurements.
22            (iii) To discourage deceptive marketing or other
23        bad faith business practices, the Agency may require
24        direct program participants, including agents
25        operating on their behalf, to provide standardized
26        disclosures to a customer prior to that customer's

 

 

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1        execution of a contract for the development of a
2        distributed generation system or a subscription to a
3        community solar project.
4            (iv) The Agency shall establish one or multiple
5        Consumer Complaints Centers to accept complaints
6        regarding businesses that participate in, or otherwise
7        benefit from, State-administered incentive funding
8        through Agency-administered programs. The Agency shall
9        maintain a public database of complaints with any
10        confidential or particularly sensitive information
11        redacted from public entries.
12            (v) Through a filing in the proceeding for the
13        approval of its long-term renewable energy resources
14        procurement plan, the Agency shall provide an annual
15        written report to the Illinois Commerce Commission
16        documenting the frequency and nature of complaints and
17        any enforcement actions taken in response to those
18        complaints.
19            (vi) The Agency shall schedule regular meetings
20        with representatives of the Office of the Attorney
21        General, the Illinois Commerce Commission, consumer
22        protection groups, and other interested stakeholders
23        to share relevant information about consumer
24        protection, project compliance, and complaints
25        received.
26            (vii) To the extent that complaints received

 

 

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1        implicate the jurisdiction of the Office of the
2        Attorney General, the Illinois Commerce Commission, or
3        local, State, or federal law enforcement, the Agency
4        shall also refer complaints to those entities as
5        appropriate.
6        (N) The long-term renewable resources procurement plan
7    required by this subsection (c) shall include a community
8    renewable generation program. The Agency shall establish
9    the terms, conditions, and program requirements for
10    photovoltaic community renewable generation projects with
11    a goal to expand renewable energy generating facility
12    access to a broader group of energy consumers, to ensure
13    robust participation opportunities for residential and
14    small commercial customers and those who cannot install
15    renewable energy on their own properties. Subject to
16    reasonable limitations, any Any plan approved by the
17    Commission shall allow subscriptions to community
18    renewable generation projects to be portable and
19    transferable. For purposes of this subparagraph (N),
20    "portable" means that subscriptions may be retained by the
21    subscriber even if the subscriber relocates or changes its
22    address within the same utility service territory; and
23    "transferable" means that a subscriber may assign or sell
24    subscriptions to another person within the same utility
25    service territory.
26        Through the development of its long-term renewable

 

 

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1    resources procurement plan, the Agency may consider
2    whether community renewable generation projects utilizing
3    technologies other than photovoltaics should be supported
4    through State-administered incentive funding, and may
5    issue requests for information to gauge market demand.
6        Electric utilities shall provide a monetary credit to
7    a subscriber's subsequent bill for service for the
8    proportional output of a community renewable generation
9    project attributable to that subscriber as specified in
10    Section 16-107.5 of the Public Utilities Act.
11        The Agency shall purchase renewable energy credits
12    from subscribed shares of photovoltaic community renewable
13    generation projects through the Adjustable Block program
14    described in subparagraph (K) of this paragraph (1) or
15    through the Illinois Solar for All Program described in
16    Section 1-56 of this Act. The electric utility shall
17    purchase any unsubscribed energy from community renewable
18    generation projects that are Qualifying Facilities ("QF")
19    under the electric utility's tariff for purchasing the
20    output from QFs under Public Utilities Regulatory Policies
21    Act of 1978.
22        The owners of and any subscribers to a community
23    renewable generation project shall not be considered
24    public utilities or alternative retail electricity
25    suppliers under the Public Utilities Act solely as a
26    result of their interest in or subscription to a community

 

 

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1    renewable generation project and shall not be required to
2    become an alternative retail electric supplier by
3    participating in a community renewable generation project
4    with a public utility.
5        (O) For the delivery year beginning June 1, 2018, the
6    long-term renewable resources procurement plan required by
7    this subsection (c) shall provide for the Agency to
8    procure contracts to continue offering the Illinois Solar
9    for All Program described in subsection (b) of Section
10    1-56 of this Act, and the contracts approved by the
11    Commission shall be executed by the utilities that are
12    subject to this subsection (c). The long-term renewable
13    resources procurement plan shall allocate up to
14    $50,000,000 5% of the funds available under the plan for
15    the applicable delivery year, or $10,000,000 per delivery
16    year, whichever is greater, to fund the programs, and the
17    plan shall determine the amount of funding to be
18    apportioned to the programs identified in subsection (b)
19    of Section 1-56 of this Act; provided that for the
20    delivery years beginning June 1, 2021, June 1, 2022, and
21    June 1, 2023, the long-term renewable resources
22    procurement plan may average the annual budgets over a
23    3-year period to account for program ramp-up. For for the
24    delivery years beginning June 1, 2017, June 1, 2021, and
25    June 1, 2024 2025, June 1, 2027, and June 1, 2030 and
26    additional the long-term renewable resources procurement

 

 

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1    plan shall allocate 10% of the funds available under the
2    plan for the applicable delivery year, or $20,000,000 per
3    delivery year, whichever is greater, and $10,000,000 of
4    such funds in such year shall be provided to the
5    Department of Commerce and Economic Opportunity to
6    implement the workforce development programs and reporting
7    as outlined in used by an electric utility that serves
8    more than 3,000,000 retail customers in the State to
9    implement a Commission-approved plan under Section
10    16-108.12 of the Public Utilities Act. In making the
11    determinations required under this subparagraph (O), the
12    Commission shall consider the experience and performance
13    under the programs and any evaluation reports. The
14    Commission shall also provide for an independent
15    evaluation of those programs on a periodic basis that are
16    funded under this subparagraph (O).
17        (P) All programs and procurements under this
18    subsection (c) shall be designed to encourage
19    participating projects to use a diverse and equitable
20    workforce and a diverse set of contractors, including
21    minority-owned businesses, disadvantaged businesses,
22    trade unions, graduates of any workforce training programs
23    administered under this Act, and small businesses.
24        The Agency shall develop a method to optimize
25    procurement of renewable energy credits from proposed
26    utility-scale projects that are located in communities

 

 

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1    eligible to receive Energy Transition Community Grants
2    pursuant to Section 10-20 of the Energy Community
3    Reinvestment Act. If this requirement conflicts with other
4    provisions of law or the Agency determines that full
5    compliance with the requirements of this subparagraph (P)
6    would be unreasonably costly or administratively
7    impractical, the Agency is to propose alternative
8    approaches to achieve development of renewable energy
9    resources in communities eligible to receive Energy
10    Transition Community Grants pursuant to Section 10-20 of
11    the Energy Community Reinvestment Act or seek an exemption
12    from this requirement from the Commission.
13        (Q) Each facility listed in subitems (i) through
14    (viii) of item (1) of this subparagraph (Q) for which a
15    renewable energy credit delivery contract is signed after
16    the effective date of this amendatory Act of the 102nd
17    General Assembly is subject to the following requirements
18    through the Agency's long-term renewable resources
19    procurement plan:
20            (1) Each facility shall be subject to the
21        prevailing wage requirements included in the
22        Prevailing Wage Act. The Agency shall require
23        verification that all construction performed on the
24        facility by the renewable energy credit delivery
25        contract holder, its contractors, or its
26        subcontractors relating to construction of the

 

 

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1        facility is performed by construction employees
2        receiving an amount for that work equal to or greater
3        than the general prevailing rate, as that term is
4        defined in Section 3 of the Prevailing Wage Act. For
5        purposes of this item (1), "house of worship" means
6        property that is both (1) used exclusively by a
7        religious society or body of persons as a place for
8        religious exercise or religious worship and (2)
9        recognized as exempt from taxation pursuant to Section
10        15-40 of the Property Tax Code. This item (1) shall
11        apply to any the following:
12                (i) all new utility-scale wind projects;
13                (ii) all new utility-scale photovoltaic
14            projects;
15                (iii) all new brownfield photovoltaic
16            projects;
17                (iv) all new photovoltaic community renewable
18            energy facilities that qualify for item (iii) of
19            subparagraph (K) of this paragraph (1);
20                (v) all new community driven community
21            photovoltaic projects that qualify for item (v) of
22            subparagraph (K) of this paragraph (1);
23                (vi) all new photovoltaic distributed
24            renewable energy generation devices on schools
25            that qualify for item (iv) of subparagraph (K) of
26            this paragraph (1);

 

 

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1                (vii) all new photovoltaic distributed
2            renewable energy generation devices that (1)
3            qualify for item (i) of subparagraph (K) of this
4            paragraph (1); (2) are not projects that serve
5            single-family or multi-family residential
6            buildings; and (3) are not houses of worship where
7            the aggregate capacity including collocated
8            projects would not exceed 100 kilowatts;
9                (viii) all new photovoltaic distributed
10            renewable energy generation devices that (1)
11            qualify for item (ii) of subparagraph (K) of this
12            paragraph (1); (2) are not projects that serve
13            single-family or multi-family residential
14            buildings; and (3) are not houses of worship where
15            the aggregate capacity including collocated
16            projects would not exceed 100 kilowatts.
17            (2) Renewable energy credits procured from new
18        utility-scale wind projects, new utility-scale solar
19        projects, and new brownfield solar projects pursuant
20        to Agency procurement events occurring after the
21        effective date of this amendatory Act of the 102nd
22        General Assembly must be from facilities built by
23        general contractors that must enter into a project
24        labor agreement, as defined by this Act, prior to
25        construction. The project labor agreement shall be
26        filed with the Director in accordance with procedures

 

 

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1        established by the Agency through its long-term
2        renewable resources procurement plan. Any information
3        submitted to the Agency in this item (2) shall be
4        considered commercially sensitive information. At a
5        minimum, the project labor agreement must provide the
6        names, addresses, and occupations of the owner of the
7        plant and the individuals representing the labor
8        organization employees participating in the project
9        labor agreement consistent with the Project Labor
10        Agreements Act. The agreement must also specify the
11        terms and conditions as defined by this Act.
12            (3) It is the intent of this Section to ensure that
13        economic development occurs across Illinois
14        communities, that emerging businesses may grow, and
15        that there is improved access to the clean energy
16        economy by persons who have greater economic burdens
17        to success. The Agency shall take into consideration
18        the unique cost of compliance of this subparagraph (Q)
19        that might be borne by equity eligible contractors,
20        shall include such costs when determining the price of
21        renewable energy credits in the Adjustable Block
22        program, and shall take such costs into consideration
23        in a nondiscriminatory manner when comparing bids for
24        competitive procurements. The Agency shall consider
25        costs associated with compliance whether in the
26        development, financing, or construction of projects.

 

 

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1        The Agency shall periodically review the assumptions
2        in these costs and may adjust prices, in compliance
3        with subparagraph (M) of this paragraph (1).
4        (R) In its long-term renewable resources procurement
5    plan, the Agency shall establish a self-direct renewable
6    portfolio standard compliance program for eligible
7    self-direct customers that purchase renewable energy
8    credits from utility-scale wind and solar projects through
9    long-term agreements for purchase of renewable energy
10    credits as described in this Section. Such long-term
11    agreements may include the purchase of energy or other
12    products on a physical or financial basis and may involve
13    an alternative retail electric supplier as defined in
14    Section 16-102 of the Public Utilities Act. This program
15    shall take effect in the delivery year commencing June 1,
16    2023.
17            (1) For the purposes of this subparagraph:
18            "Eligible self-direct customer" means any retail
19        customers of an electric utility that serves 3,000,000
20        or more retail customers in the State and whose total
21        highest 30-minute demand was more than 10,000
22        kilowatts, or any retail customers of an electric
23        utility that serves less than 3,000,000 retail
24        customers but more than 500,000 retail customers in
25        the State and whose total highest 15-minute demand was
26        more than 10,000 kilowatts.

 

 

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1            "Retail customer" has the meaning set forth in
2        Section 16-102 of the Public Utilities Act and
3        multiple retail customer accounts under the same
4        corporate parent may aggregate their account demands
5        to meet the 10,000 kilowatt threshold. The criteria
6        for determining whether this subparagraph is
7        applicable to a retail customer shall be based on the
8        12 consecutive billing periods prior to the start of
9        the year in which the application is filed.
10            (2) For renewable energy credits to count toward
11        the self-direct renewable portfolio standard
12        compliance program, they must:
13                (i) qualify as renewable energy credits as
14            defined in Section 1-10 of this Act;
15                (ii) be sourced from one or more renewable
16            energy generating facilities that comply with the
17            geographic requirements as set forth in
18            subparagraph (I) of paragraph (1) of subsection
19            (c) as interpreted through the Agency's long-term
20            renewable resources procurement plan, or, where
21            applicable, the geographic requirements that
22            governed utility-scale renewable energy credits at
23            the time the eligible self-direct customer entered
24            into the applicable renewable energy credit
25            purchase agreement;
26                (iii) be procured through long-term contracts

 

 

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1            with term lengths of at least 10 years either
2            directly with the renewable energy generating
3            facility or through a bundled power purchase
4            agreement, a virtual power purchase agreement, an
5            agreement between the renewable generating
6            facility, an alternative retail electric supplier,
7            and the customer, or such other structure as is
8            permissible under this subparagraph (R);
9                (iv) be equivalent in volume to at least 40%
10            of the eligible self-direct customer's usage,
11            determined annually by the eligible self-direct
12            customer's usage during the previous delivery
13            year, measured to the nearest megawatt-hour;
14                (v) be retired by or on behalf of the large
15            energy customer;
16                (vi) be sourced from new utility-scale wind
17            projects or new utility-scale solar projects; and
18                (vii) if the contracts for renewable energy
19            credits are entered into after the effective date
20            of this amendatory Act of the 102nd General
21            Assembly, the new utility-scale wind projects or
22            new utility-scale solar projects must comply with
23            the requirements established in subparagraphs (P)
24            and (Q) of paragraph (1) of this subsection (c)
25            and subsection (c-10).
26            (3) The self-direct renewable portfolio standard

 

 

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1        compliance program shall be designed to allow eligible
2        self-direct customers to procure new renewable energy
3        credits from new utility-scale wind projects or new
4        utility-scale photovoltaic projects. The Agency shall
5        annually determine the amount of utility-scale
6        renewable energy credits it will include each year
7        from the self-direct renewable portfolio standard
8        compliance program, subject to receiving qualifying
9        applications. In making this determination, the Agency
10        shall evaluate publicly available analyses and studies
11        of the potential market size for utility-scale
12        renewable energy long-term purchase agreements by
13        commercial and industrial energy customers and make
14        that report publicly available. If demand for
15        participation in the self-direct renewable portfolio
16        standard compliance program exceeds availability, the
17        Agency shall ensure participation is evenly split
18        between commercial and industrial users to the extent
19        there is sufficient demand from both customer classes.
20        Each renewable energy credit procured pursuant to this
21        subparagraph (R) by a self-direct customer shall
22        reduce the total volume of renewable energy credits
23        the Agency is otherwise required to procure from new
24        utility-scale projects pursuant to subparagraph (C) of
25        paragraph (1) of this subsection (c) on behalf of
26        contracting utilities where the eligible self-direct

 

 

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1        customer is located. The self-direct customer shall
2        file an annual compliance report with the Agency
3        pursuant to terms established by the Agency through
4        its long-term renewable resources procurement plan to
5        be eligible for participation in this program.
6        Customers must provide the Agency with their most
7        recent electricity billing statements or other
8        information deemed necessary by the Agency to
9        demonstrate they are an eligible self-direct customer.
10            (4) The Commission shall approve a reduction in
11        the volumetric charges collected pursuant to Section
12        16-108 of the Public Utilities Act for approved
13        eligible self-direct customers equivalent to the
14        anticipated cost of renewable energy credit deliveries
15        under contracts for new utility-scale wind and new
16        utility-scale solar entered for each delivery year
17        after the large energy customer begins retiring
18        eligible new utility scale renewable energy credits
19        for self-compliance. The self-direct credit amount
20        shall be determined annually and is equal to the
21        estimated portion of the cost authorized by
22        subparagraph (E) of paragraph (1) of this subsection
23        (c) that supported the annual procurement of
24        utility-scale renewable energy credits in the prior
25        delivery year using a methodology described in the
26        long-term renewable resources procurement plan,

 

 

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1        expressed on a per kilowatthour basis, and does not
2        include (i) costs associated with any contracts
3        entered into before the delivery year in which the
4        customer files the initial compliance report to be
5        eligible for participation in the self-direct program,
6        and (ii) costs associated with procuring renewable
7        energy credits through existing and future contracts
8        through the Adjustable Block Program, subsection (c-5)
9        of this Section 1-75, and the Solar for All Program.
10        The Agency shall assist the Commission in determining
11        the current and future costs. The Agency must
12        determine the self-direct credit amount for new and
13        existing eligible self-direct customers and submit
14        this to the Commission in an annual compliance filing.
15        The Commission must approve the self-direct credit
16        amount by June 1, 2023 and June 1 of each delivery year
17        thereafter.
18            (5) Customers described in this subparagraph (R)
19        shall apply, on a form developed by the Agency, to the
20        Agency to be designated as a self-direct eligible
21        customer. Once the Agency determines that a
22        self-direct customer is eligible for participation in
23        the program, the self-direct customer will remain
24        eligible until the end of the term of the contract.
25        Thereafter, application may be made not less than 12
26        months before the filing date of the long-term

 

 

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1        renewable resources procurement plan described in this
2        Act. At a minimum, such application shall contain the
3        following:
4                (i) the customer's certification that, at the
5            time of the customer's application, the customer
6            qualifies to be a self-direct eligible customer,
7            including documents demonstrating that
8            qualification;
9                (ii) the customer's certification that the
10            customer has entered into or will enter into by
11            the beginning of the applicable procurement year,
12            one or more bilateral contracts for new wind
13            projects or new photovoltaic projects, including
14            supporting documentation;
15                (iii) certification that the contract or
16            contracts for new renewable energy resources are
17            long-term contracts with term lengths of at least
18            10 years, including supporting documentation;
19                (iv) certification of the quantities of
20            renewable energy credits that the customer will
21            purchase each year under such contract or
22            contracts, including supporting documentation;
23                (v) proof that the contract is sufficient to
24            produce renewable energy credits to be equivalent
25            in volume to at least 40% of the large energy
26            customer's usage from the previous delivery year,

 

 

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1            measured to the nearest megawatt-hour; and
2                (vi) certification that the customer intends
3            to maintain the contract for the duration of the
4            length of the contract.
5            (6) If a customer receives the self-direct credit
6        but fails to properly procure and retire renewable
7        energy credits as required under this subparagraph
8        (R), the Commission, on petition from the Agency and
9        after notice and hearing, may direct such customer's
10        utility to recover the cost of the wrongfully received
11        self-direct credits plus interest through an adder to
12        charges assessed pursuant to Section 16-108 of the
13        Public Utilities Act. Self-direct customers who
14        knowingly fail to properly procure and retire
15        renewable energy credits and do not notify the Agency
16        are ineligible for continued participation in the
17        self-direct renewable portfolio standard compliance
18        program.
19        (2) (Blank).
20        (3) (Blank).
21        (4) The electric utility shall retire all renewable
22    energy credits used to comply with the standard.
23        (5) Beginning with the 2010 delivery year and ending
24    June 1, 2017, an electric utility subject to this
25    subsection (c) shall apply the lesser of the maximum
26    alternative compliance payment rate or the most recent

 

 

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

 

 

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1    for implementing the procurement programs, including, but
2    not limited to, the costs of administering and evaluating
3    the Adjustable Block program, through an automatic
4    adjustment clause tariff in accordance with subsection (k)
5    of Section 16-108 of the Public Utilities Act.
6        (7) Renewable energy credits procured from new
7    photovoltaic projects or new distributed renewable energy
8    generation devices under this Section after June 1, 2017
9    (the effective date of Public Act 99-906) must be procured
10    from devices installed by a qualified person in compliance
11    with the requirements of Section 16-128A of the Public
12    Utilities Act and any rules or regulations adopted
13    thereunder.
14        In meeting the renewable energy requirements of this
15    subsection (c), to the extent feasible and consistent with
16    State and federal law, the renewable energy credit
17    procurements, Adjustable Block solar program, and
18    community renewable generation program shall provide
19    employment opportunities for all segments of the
20    population and workforce, including minority-owned and
21    female-owned business enterprises, and shall not,
22    consistent with State and federal law, discriminate based
23    on race or socioeconomic status.
24    (c-5) Procurement of renewable energy credits from new
25renewable energy facilities installed at or adjacent to the
26sites of electric generating facilities that burn or burned

 

 

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1coal as their primary fuel source.
2        (1) In addition to the procurement of renewable energy
3    credits pursuant to long-term renewable resources
4    procurement plans in accordance with subsection (c) of
5    this Section and Section 16-111.5 of the Public Utilities
6    Act, the Agency shall conduct procurement events in
7    accordance with this subsection (c-5) for the procurement
8    by electric utilities that served more than 300,000 retail
9    customers in this State as of January 1, 2019 of renewable
10    energy credits from new renewable energy facilities to be
11    installed at or adjacent to the sites of electric
12    generating facilities that, as of January 1, 2016, burned
13    coal as their primary fuel source and meet the other
14    criteria specified in this subsection (c-5). For purposes
15    of this subsection (c-5), "new renewable energy facility"
16    means a new utility-scale solar project as defined in this
17    Section 1-75. The renewable energy credits procured
18    pursuant to this subsection (c-5) may be included or
19    counted for purposes of compliance with the amounts of
20    renewable energy credits required to be procured pursuant
21    to subsection (c) of this Section to the extent that there
22    are otherwise shortfalls in compliance with such
23    requirements. The procurement of renewable energy credits
24    by electric utilities pursuant to this subsection (c-5)
25    shall be funded solely by revenues collected from the Coal
26    to Solar and Energy Storage Initiative Charge provided for

 

 

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1    in this subsection (c-5) and subsection (i-5) of Section
2    16-108 of the Public Utilities Act, shall not be funded by
3    revenues collected through any of the other funding
4    mechanisms provided for in subsection (c) of this Section,
5    and shall not be subject to the limitation imposed by
6    subsection (c) on charges to retail customers for costs to
7    procure renewable energy resources pursuant to subsection
8    (c), and shall not be subject to any other requirements or
9    limitations of subsection (c).
10        (2) The Agency shall conduct 2 procurement events to
11    select owners of electric generating facilities meeting
12    the eligibility criteria specified in this subsection
13    (c-5) to enter into long-term contracts to sell renewable
14    energy credits to electric utilities serving more than
15    300,000 retail customers in this State as of January 1,
16    2019. The first procurement event shall be conducted no
17    later than March 31, 2022, unless the Agency elects to
18    delay it, until no later than May 1, 2022, due to its
19    overall volume of work, and shall be to select owners of
20    electric generating facilities located in this State and
21    south of federal Interstate Highway 80 that meet the
22    eligibility criteria specified in this subsection (c-5).
23    The second procurement event shall be conducted no sooner
24    than September 30, 2022 and no later than October 31, 2022
25    and shall be to select owners of electric generating
26    facilities located anywhere in this State that meet the

 

 

SB2408 Enrolled- 407 -LRB102 11366 BMS 16699 b

1    eligibility criteria specified in this subsection (c-5).
2    The Agency shall establish and announce a time period,
3    which shall begin no later than 30 days prior to the
4    scheduled date for the procurement event, during which
5    applicants may submit applications to be selected as
6    suppliers of renewable energy credits pursuant to this
7    subsection (c-5). The eligibility criteria for selection
8    as a supplier of renewable energy credits pursuant to this
9    subsection (c-5) shall be as follows:
10            (A) The applicant owns an electric generating
11        facility located in this State that: (i) as of January
12        1, 2016, burned coal as its primary fuel to generate
13        electricity; and (ii) has, or had prior to retirement,
14        an electric generating capacity of at least 150
15        megawatts. The electric generating facility can be
16        either: (i) retired as of the date of the procurement
17        event; or (ii) still operating as of the date of the
18        procurement event.
19            (B) The applicant is not (i) an electric
20        cooperative as defined in Section 3-119 of the Public
21        Utilities Act, or (ii) an entity described in
22        subsection (b)(1) of Section 3-105 of the Public
23        Utilities Act, or an association or consortium of or
24        an entity owned by entities described in (i) or (ii);
25        and the coal-fueled electric generating facility was
26        at one time owned, in whole or in part, by a public

 

 

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1        utility as defined in Section 3-105 of the Public
2        Utilities Act.
3            (C) If participating in the first procurement
4        event, the applicant proposes and commits to construct
5        and operate, at the site, and if necessary for
6        sufficient space on property adjacent to the existing
7        property, at which the electric generating facility
8        identified in paragraph (A) is located: (i) a new
9        renewable energy facility of at least 20 megawatts but
10        no more than 100 megawatts of electric generating
11        capacity, and (ii) an energy storage facility having a
12        storage capacity equal to at least 2 megawatts and at
13        most 10 megawatts. If participating in the second
14        procurement event, the applicant proposes and commits
15        to construct and operate, at the site, and if
16        necessary for sufficient space on property adjacent to
17        the existing property, at which the electric
18        generating facility identified in paragraph (A) is
19        located: (i) a new renewable energy facility of at
20        least 5 megawatts but no more than 20 megawatts of
21        electric generating capacity, and (ii) an energy
22        storage facility having a storage capacity equal to at
23        least 0.5 megawatts and at most one megawatt.
24            (D) The applicant agrees that the new renewable
25        energy facility and the energy storage facility will
26        be constructed or installed by a qualified entity or

 

 

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1        entities in compliance with the requirements of
2        subsection (g) of Section 16-128A of the Public
3        Utilities Act and any rules adopted thereunder.
4            (E) The applicant agrees that personnel operating
5        the new renewable energy facility and the energy
6        storage facility will have the requisite skills,
7        knowledge, training, experience, and competence, which
8        may be demonstrated by completion or current
9        participation and ultimate completion by employees of
10        an accredited or otherwise recognized apprenticeship
11        program for the employee's particular craft, trade, or
12        skill, including through training and education
13        courses and opportunities offered by the owner to
14        employees of the coal-fueled electric generating
15        facility or by previous employment experience
16        performing the employee's particular work skill or
17        function.
18            (F) The applicant commits that not less than the
19        prevailing wage, as determined pursuant to the
20        Prevailing Wage Act, will be paid to the applicant's
21        employees engaged in construction activities
22        associated with the new renewable energy facility and
23        the new energy storage facility and to the employees
24        of applicant's contractors engaged in construction
25        activities associated with the new renewable energy
26        facility and the new energy storage facility, and

 

 

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1        that, on or before the commercial operation date of
2        the new renewable energy facility, the applicant shall
3        file a report with the Agency certifying that the
4        requirements of this subparagraph (F) have been met.
5            (G) The applicant commits that if selected, it
6        will negotiate a project labor agreement for the
7        construction of the new renewable energy facility and
8        associated energy storage facility that includes
9        provisions requiring the parties to the agreement to
10        work together to establish diversity threshold
11        requirements and to ensure best efforts to meet
12        diversity targets, improve diversity at the applicable
13        job site, create diverse apprenticeship opportunities,
14        and create opportunities to employ former coal-fired
15        power plant workers.
16            (H) The applicant commits to enter into a contract
17        or contracts for the applicable duration to provide
18        specified numbers of renewable energy credits each
19        year from the new renewable energy facility to
20        electric utilities that served more than 300,000
21        retail customers in this State as of January 1, 2019,
22        at a price of $30 per renewable energy credit. The
23        price per renewable energy credit shall be fixed at
24        $30 for the applicable duration and the renewable
25        energy credits shall not be indexed renewable energy
26        credits as provided for in item (v) of subparagraph

 

 

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1        (G) of paragraph (1) of subsection (c) of Section 1-75
2        of this Act. The applicable duration of each contract
3        shall be 20 years, unless the applicant is physically
4        interconnected to the PJM Interconnection, LLC
5        transmission grid and had a generating capacity of at
6        least 1,200 megawatts as of January 1, 2021, in which
7        case the applicable duration of the contract shall be
8        15 years.
9            (I) The applicant's application is certified by an
10        officer of the applicant and by an officer of the
11        applicant's ultimate parent company, if any.
12        (3) An applicant may submit applications to contract
13    to supply renewable energy credits from more than one new
14    renewable energy facility to be constructed at or adjacent
15    to one or more qualifying electric generating facilities
16    owned by the applicant. The Agency may select new
17    renewable energy facilities to be located at or adjacent
18    to the sites of more than one qualifying electric
19    generation facility owned by an applicant to contract with
20    electric utilities to supply renewable energy credits from
21    such facilities.
22        (4) The Agency shall assess fees to each applicant to
23    recover the Agency's costs incurred in receiving and
24    evaluating applications, conducting the procurement event,
25    developing contracts for sale, delivery and purchase of
26    renewable energy credits, and monitoring the

 

 

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1    administration of such contracts, as provided for in this
2    subsection (c-5), including fees paid to a procurement
3    administrator retained by the Agency for one or more of
4    these purposes.
5        (5) The Agency shall select the applicants and the new
6    renewable energy facilities to contract with electric
7    utilities to supply renewable energy credits in accordance
8    with this subsection (c-5). In the first procurement
9    event, the Agency shall select applicants and new
10    renewable energy facilities to supply renewable energy
11    credits, at a price of $30 per renewable energy credit,
12    aggregating to no less than 400,000 renewable energy
13    credits per year for the applicable duration, assuming
14    sufficient qualifying applications to supply, in the
15    aggregate, at least that amount of renewable energy
16    credits per year; and not more than 580,000 renewable
17    energy credits per year for the applicable duration. In
18    the second procurement event, the Agency shall select
19    applicants and new renewable energy facilities to supply
20    renewable energy credits, at a price of $30 per renewable
21    energy credit, aggregating to no more than 625,000
22    renewable energy credits per year less the amount of
23    renewable energy credits each year contracted for as a
24    result of the first procurement event, for the applicable
25    durations. The number of renewable energy credits to be
26    procured as specified in this paragraph (5) shall not be

 

 

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1    reduced based on renewable energy credits procured in the
2    self-direct renewable energy credit compliance program
3    established pursuant to subparagraph (R) of paragraph (1)
4    of subsection (c) of Section 1-75.
5        (6) The obligation to purchase renewable energy
6    credits from the applicants and their new renewable energy
7    facilities selected by the Agency shall be allocated to
8    the electric utilities based on their respective
9    percentages of kilowatthours delivered to delivery
10    services customers to the aggregate kilowatthour
11    deliveries by the electric utilities to delivery services
12    customers for the year ended December 31, 2021. In order
13    to achieve these allocation percentages between or among
14    the electric utilities, the Agency shall require each
15    applicant that is selected in the procurement event to
16    enter into a contract with each electric utility for the
17    sale and purchase of renewable energy credits from each
18    new renewable energy facility to be constructed and
19    operated by the applicant, with the sale and purchase
20    obligations under the contracts to aggregate to the total
21    number of renewable energy credits per year to be supplied
22    by the applicant from the new renewable energy facility.
23        (7) The Agency shall submit its proposed selection of
24    applicants, new renewable energy facilities to be
25    constructed, and renewable energy credit amounts for each
26    procurement event to the Commission for approval. The

 

 

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1    Commission shall, within 2 business days after receipt of
2    the Agency's proposed selections, approve the proposed
3    selections if it determines that the applicants and the
4    new renewable energy facilities to be constructed meet the
5    selection criteria set forth in this subsection (c-5) and
6    that the Agency seeks approval for contracts of applicable
7    durations aggregating to no more than the maximum amount
8    of renewable energy credits per year authorized by this
9    subsection (c-5) for the procurement event, at a price of
10    $30 per renewable energy credit.
11        (8) The Agency, in conjunction with its procurement
12    administrator if one is retained, the electric utilities,
13    and potential applicants for contracts to produce and
14    supply renewable energy credits pursuant to this
15    subsection (c-5), shall develop a standard form contract
16    for the sale, delivery and purchase of renewable energy
17    credits pursuant to this subsection (c-5). Each contract
18    resulting from the first procurement event shall allow for
19    a commercial operation date for the new renewable energy
20    facility of either June 1, 2023 or June 1, 2024, with such
21    dates subject to adjustment as provided in this paragraph.
22    Each contract resulting from the second procurement event
23    shall provide for a commercial operation date on June 1
24    next occurring up to 48 months after execution of the
25    contract. Each contract shall provide that the owner shall
26    receive payments for renewable energy credits for the

 

 

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1    applicable durations beginning with the commercial
2    operation date of the new renewable energy facility. The
3    form contract shall provide for adjustments to the
4    commercial operation and payment start dates as needed due
5    to any delays in completing the procurement and
6    contracting processes, in finalizing interconnection
7    agreements and installing interconnection facilities, and
8    in obtaining other necessary governmental permits and
9    approvals. The form contract shall be, to the maximum
10    extent possible, consistent with standard electric
11    industry contracts for sale, delivery, and purchase of
12    renewable energy credits while taking into account the
13    specific requirements of this subsection (c-5). The form
14    contract shall provide for over-delivery and
15    under-delivery of renewable energy credits within
16    reasonable ranges during each 12-month period and penalty,
17    default, and enforcement provisions for failure of the
18    selling party to deliver renewable energy credits as
19    specified in the contract and to comply with the
20    requirements of this subsection (c-5). The standard form
21    contract shall specify that all renewable energy credits
22    delivered to the electric utility pursuant to the contract
23    shall be retired. The Agency shall make the proposed
24    contracts available for a reasonable period for comment by
25    potential applicants, and shall publish the final form
26    contract at least 30 days before the date of the first

 

 

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1    procurement event.
2        (9) Coal to Solar and Energy Storage Initiative
3    Charge.
4            (A) By no later than July 1, 2022, each electric
5        utility that served more than 300,000 retail customers
6        in this State as of January 1, 2019 shall file a tariff
7        with the Commission for the billing and collection of
8        a Coal to Solar and Energy Storage Initiative Charge
9        in accordance with subsection (i-5) of Section 16-108
10        of the Public Utilities Act, with such tariff to be
11        effective, following review and approval or
12        modification by the Commission, beginning January 1,
13        2023. The tariff shall provide for the calculation and
14        setting of the electric utility's Coal to Solar and
15        Energy Storage Initiative Charge to collect revenues
16        estimated to be sufficient, in the aggregate, (i) to
17        enable the electric utility to pay for the renewable
18        energy credits it has contracted to purchase in the
19        delivery year beginning June 1, 2023 and each delivery
20        year thereafter from new renewable energy facilities
21        located at the sites of qualifying electric generating
22        facilities, and (ii) to fund the grant payments to be
23        made in each delivery year by the Department of
24        Commerce and Economic Opportunity, or any successor
25        department or agency, which shall be referred to in
26        this subsection (c-5) as the Department, pursuant to

 

 

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1        paragraph (10) of this subsection (c-5). The electric
2        utility's tariff shall provide for the billing and
3        collection of the Coal to Solar and Energy Storage
4        Initiative Charge on each kilowatthour of electricity
5        delivered to its delivery services customers within
6        its service territory and shall provide for an annual
7        reconciliation of revenues collected with actual
8        costs, in accordance with subsection (i-5) of Section
9        16-108 of the Public Utilities Act.
10            (B) Each electric utility shall remit on a monthly
11        basis to the State Treasurer, for deposit in the Coal
12        to Solar and Energy Storage Initiative Fund provided
13        for in this subsection (c-5), the electric utility's
14        collections of the Coal to Solar and Energy Storage
15        Initiative Charge in the amount estimated to be needed
16        by the Department for grant payments pursuant to grant
17        contracts entered into by the Department pursuant to
18        paragraph (10) of this subsection (c-5).
19        (10) Coal to Solar and Energy Storage Initiative Fund.
20            (A) The Coal to Solar and Energy Storage
21        Initiative Fund is established as a special fund in
22        the State treasury. The Coal to Solar and Energy
23        Storage Initiative Fund is authorized to receive, by
24        statutory deposit, that portion specified in item (B)
25        of paragraph (9) of this subsection (c-5) of moneys
26        collected by electric utilities through imposition of

 

 

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1        the Coal to Solar and Energy Storage Initiative Charge
2        required by this subsection (c-5). The Coal to Solar
3        and Energy Storage Initiative Fund shall be
4        administered by the Department to provide grants to
5        support the installation and operation of energy
6        storage facilities at the sites of qualifying electric
7        generating facilities meeting the criteria specified
8        in this paragraph (10).
9            (B) The Coal to Solar and Energy Storage
10        Initiative Fund shall not be subject to sweeps,
11        administrative charges, or chargebacks, including, but
12        not limited to, those authorized under Section 8h of
13        the State Finance Act, that would in any way result in
14        the transfer of those funds from the Coal to Solar and
15        Energy Storage Initiative Fund to any other fund of
16        this State or in having any such funds utilized for any
17        purpose other than the express purposes set forth in
18        this paragraph (10).
19            (C) The Department shall utilize up to
20        $280,500,000 in the Coal to Solar and Energy Storage
21        Initiative Fund for grants, assuming sufficient
22        qualifying applicants, to support installation of
23        energy storage facilities at the sites of up to 3
24        qualifying electric generating facilities located in
25        the Midcontinent Independent System Operator, Inc.,
26        region in Illinois and the sites of up to 2 qualifying

 

 

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1        electric generating facilities located in the PJM
2        Interconnection, LLC region in Illinois that meet the
3        criteria set forth in this subparagraph (C). The
4        criteria for receipt of a grant pursuant to this
5        subparagraph (C) are as follows:
6                (1) the electric generating facility at the
7            site has, or had prior to retirement, an electric
8            generating capacity of at least 150 megawatts;
9                (2) the electric generating facility burns (or
10            burned prior to retirement) coal as its primary
11            source of fuel;
12                (3) if the electric generating facility is
13            retired, it was retired subsequent to January 1,
14            2016;
15                (4) the owner of the electric generating
16            facility has not been selected by the Agency
17            pursuant to this subsection (c-5) of this Section
18            to enter into a contract to sell renewable energy
19            credits to one or more electric utilities from a
20            new renewable energy facility located or to be
21            located at or adjacent to the site at which the
22            electric generating facility is located;
23                (5) the electric generating facility located
24            at the site was at one time owned, in whole or in
25            part, by a public utility as defined in Section
26            3-105 of the Public Utilities Act;

 

 

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1                (6) the electric generating facility at the
2            site is not owned by (i) an electric cooperative
3            as defined in Section 3-119 of the Public
4            Utilities Act, or (ii) an entity described in
5            subsection (b)(1) of Section 3-105 of the Public
6            Utilities Act, or an association or consortium of
7            or an entity owned by entities described in items
8            (i) or (ii);
9                (7) the proposed energy storage facility at
10            the site will have energy storage capacity of at
11            least 37 megawatts;
12                (8) the owner commits to place the energy
13            storage facility into commercial operation on
14            either June 1, 2023, June 1, 2024, or June 1, 2025,
15            with such date subject to adjustment as needed due
16            to any delays in completing the grant contracting
17            process, in finalizing interconnection agreements
18            and in installing interconnection facilities, and
19            in obtaining necessary governmental permits and
20            approvals;
21                (9) the owner agrees that the new energy
22            storage facility will be constructed or installed
23            by a qualified entity or entities consistent with
24            the requirements of subsection (g) of Section
25            16-128A of the Public Utilities Act and any rules
26            adopted under that Section;

 

 

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1                (10) the owner agrees that personnel operating
2            the energy storage facility will have the
3            requisite skills, knowledge, training, experience,
4            and competence, which may be demonstrated by
5            completion or current participation and ultimate
6            completion by employees of an accredited or
7            otherwise recognized apprenticeship program for
8            the employee's particular craft, trade, or skill,
9            including through training and education courses
10            and opportunities offered by the owner to
11            employees of the coal-fueled electric generating
12            facility or by previous employment experience
13            performing the employee's particular work skill or
14            function;
15                (11) the owner commits that not less than the
16            prevailing wage, as determined pursuant to the
17            Prevailing Wage Act, will be paid to the owner's
18            employees engaged in construction activities
19            associated with the new energy storage facility
20            and to the employees of the owner's contractors
21            engaged in construction activities associated with
22            the new energy storage facility, and that, on or
23            before the commercial operation date of the new
24            energy storage facility, the owner shall file a
25            report with the Department certifying that the
26            requirements of this subparagraph (11) have been

 

 

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1            met; and
2                (12) the owner commits that if selected to
3            receive a grant, it will negotiate a project labor
4            agreement for the construction of the new energy
5            storage facility that includes provisions
6            requiring the parties to the agreement to work
7            together to establish diversity threshold
8            requirements and to ensure best efforts to meet
9            diversity targets, improve diversity at the
10            applicable job site, create diverse apprenticeship
11            opportunities, and create opportunities to employ
12            former coal-fired power plant workers.
13            The Department shall accept applications for this
14        grant program until March 31, 2022 and shall announce
15        the award of grants no later than June 1, 2022. The
16        Department shall make the grant payments to a
17        recipient in equal annual amounts for 10 years
18        following the date the energy storage facility is
19        placed into commercial operation. The annual grant
20        payments to a qualifying energy storage facility shall
21        be $110,000 per megawatt of energy storage capacity,
22        with total annual grant payments pursuant to this
23        subparagraph (C) for qualifying energy storage
24        facilities not to exceed $28,050,000 in any year.
25            (D) Grants of funding for energy storage
26        facilities pursuant to subparagraph (C) of this

 

 

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1        paragraph (10), from the Coal to Solar and Energy
2        Storage Initiative Fund, shall be memorialized in
3        grant contracts between the Department and the
4        recipient. The grant contracts shall specify the date
5        or dates in each year on which the annual grant
6        payments shall be paid.
7            (E) All disbursements from the Coal to Solar and
8        Energy Storage Initiative Fund shall be made only upon
9        warrants of the Comptroller drawn upon the Treasurer
10        as custodian of the Fund upon vouchers signed by the
11        Director of the Department or by the person or persons
12        designated by the Director of the Department for that
13        purpose. The Comptroller is authorized to draw the
14        warrants upon vouchers so signed. The Treasurer shall
15        accept all written warrants so signed and shall be
16        released from liability for all payments made on those
17        warrants.
18        (11) Diversity, equity, and inclusion plans.
19            (A) Each applicant selected in a procurement event
20        to contract to supply renewable energy credits in
21        accordance with this subsection (c-5) and each owner
22        selected by the Department to receive a grant or
23        grants to support the construction and operation of a
24        new energy storage facility or facilities in
25        accordance with this subsection (c-5) shall, within 60
26        days following the Commission's approval of the

 

 

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1        applicant to contract to supply renewable energy
2        credits or within 60 days following execution of a
3        grant contract with the Department, as applicable,
4        submit to the Commission a diversity, equity, and
5        inclusion plan setting forth the applicant's or
6        owner's numeric goals for the diversity composition of
7        its supplier entities for the new renewable energy
8        facility or new energy storage facility, as
9        applicable, which shall be referred to for purposes of
10        this paragraph (11) as the project, and the
11        applicant's or owner's action plan and schedule for
12        achieving those goals.
13            (B) For purposes of this paragraph (11), diversity
14        composition shall be based on the percentage, which
15        shall be a minimum of 25%, of eligible expenditures
16        for contract awards for materials and services (which
17        shall be defined in the plan) to business enterprises
18        owned by minority persons, women, or persons with
19        disabilities as defined in Section 2 of the Business
20        Enterprise for Minorities, Women, and Persons with
21        Disabilities Act, to LGBTQ business enterprises, to
22        veteran-owned business enterprises, and to business
23        enterprises located in environmental justice
24        communities. The diversity composition goals of the
25        plan may include eligible expenditures in areas for
26        vendor or supplier opportunities in addition to

 

 

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1        development and construction of the project, and may
2        exclude from eligible expenditures materials and
3        services with limited market availability, limited
4        production and availability from suppliers in the
5        United States, such as solar panels and storage
6        batteries, and material and services that are subject
7        to critical energy infrastructure or cybersecurity
8        requirements or restrictions. The plan may provide
9        that the diversity composition goals may be met
10        through Tier 1 Direct or Tier 2 subcontracting
11        expenditures or a combination thereof for the project.
12            (C) The plan shall provide for, but not be limited
13        to: (i) internal initiatives, including multi-tier
14        initiatives, by the applicant or owner, or by its
15        engineering, procurement and construction contractor
16        if one is used for the project, which for purposes of
17        this paragraph (11) shall be referred to as the EPC
18        contractor, to enable diverse businesses to be
19        considered fairly for selection to provide materials
20        and services; (ii) requirements for the applicant or
21        owner or its EPC contractor to proactively solicit and
22        utilize diverse businesses to provide materials and
23        services; and (iii) requirements for the applicant or
24        owner or its EPC contractor to hire a diverse
25        workforce for the project. The plan shall include a
26        description of the applicant's or owner's diversity

 

 

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1        recruiting efforts both for the project and for other
2        areas of the applicant's or owner's business
3        operations. The plan shall provide for the imposition
4        of financial penalties on the applicant's or owner's
5        EPC contractor for failure to exercise best efforts to
6        comply with and execute the EPC contractor's diversity
7        obligations under the plan. The plan may provide for
8        the applicant or owner to set aside a portion of the
9        work on the project to serve as an incubation program
10        for qualified businesses, as specified in the plan,
11        owned by minority persons, women, persons with
12        disabilities, LGBTQ persons, and veterans, and
13        businesses located in environmental justice
14        communities, seeking to enter the renewable energy
15        industry.
16            (D) The applicant or owner may submit a revised or
17        updated plan to the Commission from time to time as
18        circumstances warrant. The applicant or owner shall
19        file annual reports with the Commission detailing the
20        applicant's or owner's progress in implementing its
21        plan and achieving its goals and any modifications the
22        applicant or owner has made to its plan to better
23        achieve its diversity, equity and inclusion goals. The
24        applicant or owner shall file a final report on the
25        fifth June 1 following the commercial operation date
26        of the new renewable energy resource or new energy

 

 

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1        storage facility, but the applicant or owner shall
2        thereafter continue to be subject to applicable
3        reporting requirements of Section 5-117 of the Public
4        Utilities Act.
5    (c-10) Equity accountability system. It is the purpose of
6this subsection (c-10) to create an equity accountability
7system, which includes the minimum equity standards for all
8renewable energy procurements, the equity category of the
9Adjustable Block Program, and the equity prioritization for
10noncompetitive procurements, that is successful in advancing
11priority access to the clean energy economy for businesses and
12workers from communities that have been excluded from economic
13opportunities in the energy sector, have been subject to
14disproportionate levels of pollution, and have
15disproportionately experienced negative public health
16outcomes. Further, it is the purpose of this subsection to
17ensure that this equity accountability system is successful in
18advancing equity across Illinois by providing access to the
19clean energy economy for businesses and workers from
20communities that have been historically excluded from economic
21opportunities in the energy sector, have been subject to
22disproportionate levels of pollution, and have
23disproportionately experienced negative public health
24outcomes.
25        (1) Minimum equity standards. The Agency shall create
26    programs with the purpose of increasing access to and

 

 

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1    development of equity eligible contractors, who are prime
2    contractors and subcontractors, across all of the programs
3    it manages. All applications for renewable energy credit
4    procurements shall comply with specific minimum equity
5    commitments. Starting in the delivery year immediately
6    following the next long-term renewable resources
7    procurement plan, at least 10% of the project workforce
8    for each entity participating in a procurement program
9    outlined in this subsection (c-10) must be done by equity
10    eligible persons or equity eligible contractors. The
11    Agency shall increase the minimum percentage each delivery
12    year thereafter by increments that ensure a statewide
13    average of 30% of the project workforce for each entity
14    participating in a procurement program is done by equity
15    eligible persons or equity eligible contractors by 2030.
16    The Agency shall propose a schedule of percentage
17    increases to the minimum equity standards in its draft
18    revised renewable energy resources procurement plan
19    submitted to the Commission for approval pursuant to
20    paragraph (5) of subsection (b) of Section 16-111.5 of the
21    Public Utilities Act. In determining these annual
22    increases, the Agency shall have the discretion to
23    establish different minimum equity standards for different
24    types of procurements and different regions of the State
25    if the Agency finds that doing so will further the
26    purposes of this subsection (c-10). The proposed schedule

 

 

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1    of annual increases shall be revisited and updated on an
2    annual basis. Revisions shall be developed with
3    stakeholder input, including from equity eligible persons,
4    equity eligible contractors, clean energy industry
5    representatives, and community-based organizations that
6    work with such persons and contractors.
7            (A) At the start of each delivery year, the Agency
8        shall require a compliance plan from each entity
9        participating in a procurement program of subsection
10        (c) of this Section that demonstrates how they will
11        achieve compliance with the minimum equity standard
12        percentage for work completed in that delivery year.
13        If an entity applies for its approved vendor or
14        designee status between delivery years, the Agency
15        shall require a compliance plan at the time of
16        application.
17            (B) Halfway through each delivery year, the Agency
18        shall require each entity participating in a
19        procurement program to confirm that it will achieve
20        compliance in that delivery year, when applicable. The
21        Agency may offer corrective action plans to entities
22        that are not on track to achieve compliance.
23            (C) At the end of each delivery year, each entity
24        participating and completing work in that delivery
25        year in a procurement program of subsection (c) shall
26        submit a report to the Agency that demonstrates how it

 

 

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1        achieved compliance with the minimum equity standards
2        percentage for that delivery year.
3            (D) The Agency shall prohibit participation in
4        procurement programs by an approved vendor or
5        designee, as applicable, or entities with which an
6        approved vendor or designee, as applicable, shares a
7        common parent company if an approved vendor or
8        designee, as applicable, failed to meet the minimum
9        equity standards for the prior delivery year. Waivers
10        approved for lack of equity eligible persons or equity
11        eligible contractors in a geographic area of a project
12        shall not count against the approved vendor or
13        designee. The Agency shall offer a corrective action
14        plan for any such entities to assist them in obtaining
15        compliance and shall allow continued access to
16        procurement programs upon an approved vendor or
17        designee demonstrating compliance.
18            (E) The Agency shall pursue efficiencies achieved
19        by combining with other approved vendor or designee
20        reporting.
21        (2) Equity accountability system within the Adjustable
22    Block program. The equity category described in item (vi)
23    of subparagraph (K) of subsection (c) is only available to
24    applicants that are equity eligible contractors.
25        (3) Equity accountability system within competitive
26    procurements. Through its long-term renewable resources

 

 

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1    procurement plan, the Agency shall develop requirements
2    for ensuring that competitive procurement processes,
3    including utility-scale solar, utility-scale wind, and
4    brownfield site photovoltaic projects, advance the equity
5    goals of this subsection (c-10). Subject to Commission
6    approval, the Agency shall develop bid application
7    requirements and a bid evaluation methodology for ensuring
8    that utilization of equity eligible contractors, whether
9    as bidders or as participants on project development, is
10    optimized, including requiring that winning or successful
11    applicants for utility-scale projects are or will partner
12    with equity eligible contractors and giving preference to
13    bids through which a higher portion of contract value
14    flows to equity eligible contractors. To the extent
15    practicable, entities participating in competitive
16    procurements shall also be required to meet all the equity
17    accountability requirements for approved vendors and their
18    designees under this subsection (c-10). In developing
19    these requirements, the Agency shall also consider whether
20    equity goals can be further advanced through additional
21    measures.
22        (4) In the first revision to the long-term renewable
23    energy resources procurement plan and each revision
24    thereafter, the Agency shall include the following:
25            (A) The current status and number of equity
26        eligible contractors listed in the Energy Workforce

 

 

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1        Equity Database designed in subsection (c-25),
2        including the number of equity eligible contractors
3        with current certifications as issued by the Agency.
4            (B) A mechanism for measuring, tracking, and
5        reporting project workforce at the approved vendor or
6        designee level, as applicable, which shall include a
7        measurement methodology and records to be made
8        available for audit by the Agency or the Program
9        Administrator.
10            (C) A program for approved vendors, designees,
11        eligible persons, and equity eligible contractors to
12        receive trainings, guidance, and other support from
13        the Agency or its designee regarding the equity
14        category outlined in item (vi) of subparagraph (K) of
15        paragraph (1) of subsection (c) and in meeting the
16        minimum equity standards of this subsection (c-10).
17            (D) A process for certifying equity eligible
18        contractors and equity eligible persons. The
19        certification process shall coordinate with the Energy
20        Workforce Equity Database set forth in subsection
21        (c-25).
22            (E) An application for waiver of the minimum
23        equity standards of this subsection, which the Agency
24        shall have the discretion to grant in rare
25        circumstances. The Agency may grant such a waiver
26        where the applicant provides evidence of significant

 

 

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1        efforts toward meeting the minimum equity commitment,
2        including: use of the Energy Workforce Equity
3        Database; efforts to hire or contract with entities
4        that hire eligible persons; and efforts to establish
5        contracting relationships with eligible contractors.
6        The Agency shall support applicants in understanding
7        the Energy Workforce Equity Database and other
8        resources for pursuing compliance of the minimum
9        equity standards. Waivers shall be project-specific,
10        unless the Agency deems it necessary to grant a waiver
11        across a portfolio of projects, and in effect for no
12        longer than one year. Any waiver extension or
13        subsequent waiver request from an applicant shall be
14        subject to the requirements of this Section and shall
15        specify efforts made to reach compliance. When
16        considering whether to grant a waiver, and to what
17        extent, the Agency shall consider the degree to which
18        similarly situated applicants have been able to meet
19        these minimum equity commitments. For repeated waiver
20        requests for specific lack of eligible persons or
21        eligible contractors available, the Agency shall make
22        recommendations to target recruitment to add such
23        eligible persons or eligible contractors to the
24        database.
25        (5) The Agency shall collect information about work on
26    projects or portfolios of projects subject to these

 

 

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1    minimum equity standards to ensure compliance with this
2    subsection (c-10). Reporting in furtherance of this
3    requirement may be combined with other annual reporting
4    requirements. Such reporting shall include proof of
5    certification of each equity eligible contractor or equity
6    eligible person during the applicable time period.
7        (6) The Agency shall keep confidential all information
8    and communication that provides private or personal
9    information.
10        (7) Modifications to the equity accountability system.
11    As part of the update of the long-term renewable resources
12    procurement plan to be initiated in 2023, or sooner if the
13    Agency deems necessary, the Agency shall determine the
14    extent to which the equity accountability system described
15    in this subsection (c-10) has advanced the goals of this
16    amendatory Act of the 102nd General Assembly, including
17    through the inclusion of equity eligible persons and
18    equity eligible contractors in renewable energy credit
19    projects. If the Agency finds that the equity
20    accountability system has failed to meet those goals to
21    its fullest potential, the Agency may revise the following
22    criteria for future Agency procurements: (A) the
23    percentage of project workforce, or other appropriate
24    workforce measure, certified as equity eligible persons or
25    equity eligible contractors; (B) definitions for equity
26    investment eligible persons and equity investment eligible

 

 

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1    community; and (C) such other modifications necessary to
2    advance the goals of this amendatory Act of the 102nd
3    General Assembly effectively. Such revised criteria may
4    also establish distinct equity accountability systems for
5    different types of procurements or different regions of
6    the State if the Agency finds that doing so will further
7    the purposes of such programs. Revisions shall be
8    developed with stakeholder input, including from equity
9    eligible persons, equity eligible contractors, and
10    community-based organizations that work with such persons
11    and contractors.
12    (c-15) Racial discrimination elimination powers and
13process.
14        (1) Purpose. It is the purpose of this subsection to
15    empower the Agency and other State actors to remedy racial
16    discrimination in Illinois' clean energy economy as
17    effectively and expediently as possible, including through
18    the use of race-conscious remedies, such as race-conscious
19    contracting and hiring goals, as consistent with State and
20    federal law.
21        (2) Racial disparity and discrimination review
22    process.
23            (A) Within one year after awarding contracts using
24        the equity actions processes established in this
25        Section, the Agency shall publish a report evaluating
26        the effectiveness of the equity actions point criteria

 

 

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1        of this Section in increasing participation of equity
2        eligible persons and equity eligible contractors. The
3        report shall disaggregate participating workers and
4        contractors by race and ethnicity. The report shall be
5        forwarded to the Governor, the General Assembly, and
6        the Illinois Commerce Commission and be made available
7        to the public.
8            (B) As soon as is practicable thereafter, the
9        Agency, in consultation with the Department of
10        Commerce and Economic Opportunity, Department of
11        Labor, and other agencies that may be relevant, shall
12        commission and publish a disparity and availability
13        study that measures the presence and impact of
14        discrimination on minority businesses and workers in
15        Illinois' clean energy economy. The Agency may hire
16        consultants and experts to conduct the disparity and
17        availability study, with the retention of those
18        consultants and experts exempt from the requirements
19        of Section 20-10 of the Illinois Procurement Code. The
20        Illinois Power Agency shall forward a copy of its
21        findings and recommendations to the Governor, the
22        General Assembly, and the Illinois Commerce
23        Commission. If the disparity and availability study
24        establishes a strong basis in evidence that there is
25        discrimination in Illinois' clean energy economy, the
26        Agency, Department of Commerce and Economic

 

 

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1        Opportunity, Department of Labor, Department of
2        Corrections, and other appropriate agencies shall take
3        appropriate remedial actions, including race-conscious
4        remedial actions as consistent with State and federal
5        law, to effectively remedy this discrimination. Such
6        remedies may include modification of the equity
7        accountability system as described in subsection
8        (c-10).
9    (c-20) Program data collection.
10        (1) Purpose. Data collection, data analysis, and
11    reporting are critical to ensure that the benefits of the
12    clean energy economy provided to Illinois residents and
13    businesses are equitably distributed across the State. The
14    Agency shall collect data from program applicants in order
15    to track and improve equitable distribution of benefits
16    across Illinois communities for all procurements the
17    Agency conducts. The Agency shall use this data to, among
18    other things, measure any potential impact of racial
19    discrimination on the distribution of benefits and provide
20    information necessary to correct any discrimination
21    through methods consistent with State and federal law.
22        (2) Agency collection of program data. The Agency
23    shall collect demographic and geographic data for each
24    entity awarded contracts under any Agency-administered
25    program.
26        (3) Required information to be collected. The Agency

 

 

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1    shall collect the following information from applicants
2    and program participants where applicable:
3            (A) demographic information, including racial or
4        ethnic identity for real persons employed, contracted,
5        or subcontracted through the program and owners of
6        businesses or entities that apply to receive renewable
7        energy credits from the Agency;
8            (B) geographic location of the residency of real
9        persons employed, contracted, or subcontracted through
10        the program and geographic location of the
11        headquarters of the business or entity that applies to
12        receive renewable energy credits from the Agency; and
13            (C) any other information the Agency determines is
14        necessary for the purpose of achieving the purpose of
15        this subsection.
16        (4) Publication of collected information. The Agency
17    shall publish, at least annually, information on the
18    demographics of program participants on an aggregate
19    basis.
20        (5) Nothing in this subsection shall be interpreted to
21    limit the authority of the Agency, or other agency or
22    department of the State, to require or collect demographic
23    information from applicants of other State programs.
24    (c-25) Energy Workforce Equity Database.
25        (1) The Agency, in consultation with the Department of
26    Commerce and Economic Opportunity, shall create an Energy

 

 

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1    Workforce Equity Database, and may contract with a third
2    party to do so ("database program administrator"). If the
3    Department decides to contract with a third party, that
4    third party shall be exempt from the requirements of
5    Section 20-10 of the Illinois Procurement Code. The Energy
6    Workforce Equity Database shall be a searchable database
7    of suppliers, vendors, and subcontractors for clean energy
8    industries that is:
9            (A) publicly accessible;
10            (B) easy for people to find and use;
11            (C) organized by company specialty or field;
12            (D) region-specific; and
13            (E) populated with information including, but not
14        limited to, contacts for suppliers, vendors, or
15        subcontractors who are minority and women-owned
16        business enterprise certified or who participate or
17        have participated in any of the programs described in
18        this Act.
19        (2) The Agency shall create an easily accessible,
20    public facing online tool using the database information
21    that includes, at a minimum, the following:
22            (A) a map of environmental justice and equity
23        investment eligible communities;
24            (B) job postings and recruiting opportunities;
25            (C) a means by which recruiting clean energy
26        companies can find and interact with current or former

 

 

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1        participants of clean energy workforce training
2        programs;
3            (D) information on workforce training service
4        providers and training opportunities available to
5        prospective workers;
6            (E) renewable energy company diversity reporting;
7            (F) a list of equity eligible contractors with
8        their contact information, types of work performed,
9        and locations worked in;
10            (G) reporting on outcomes of the programs
11        described in the workforce programs of the Energy
12        Transition Act, including information such as, but not
13        limited to, retention rate, graduation rate, and
14        placement rates of trainees; and
15            (H) information about the Jobs and Environmental
16        Justice Grant Program, the Clean Energy Jobs and
17        Justice Fund, and other sources of capital.
18        (3) The Agency shall ensure the database is regularly
19    updated to ensure information is current and shall
20    coordinate with the Department of Commerce and Economic
21    Opportunity to ensure that it includes information on
22    individuals and entities that are or have participated in
23    the Clean Jobs Workforce Network Program, Clean Energy
24    Contractor Incubator Program, Returning Residents Clean
25    Jobs Training Program, or Clean Energy Primes Contractor
26    Accelerator Program.

 

 

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1    (c-30) Enforcement of minimum equity standards. All
2entities seeking renewable energy credits must submit an
3annual report to demonstrate compliance with each of the
4equity commitments required under subsection (c-10). If the
5Agency concludes the entity has not met or maintained its
6minimum equity standards required under the applicable
7subparagraphs under subsection (c-10), the Agency shall deny
8the entity's ability to participate in procurement programs in
9subsection (c), including by withholding approved vendor or
10designee status. The Agency may require the entity to enter
11into a corrective action plan. An entity that is not
12recertified for failing to meet required equity actions in
13subparagraph (c-10) may reapply once they have a corrective
14action plan and achieve compliance with the minimum equity
15standards.
16    (d) Clean coal portfolio standard.
17        (1) The procurement plans shall include electricity
18    generated using clean coal. Each utility shall enter into
19    one or more sourcing agreements with the initial clean
20    coal facility, as provided in paragraph (3) of this
21    subsection (d), covering electricity generated by the
22    initial clean coal facility representing at least 5% of
23    each utility's total supply to serve the load of eligible
24    retail customers in 2015 and each year thereafter, as
25    described in paragraph (3) of this subsection (d), subject
26    to the limits specified in paragraph (2) of this

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    shall be executed within 90 days after any such approval
2    by the General Assembly. The Agency and the Commission
3    shall have authority to inspect all books and records
4    associated with the initial clean coal facility during the
5    term of such a sourcing agreement. A utility's sourcing
6    agreement for electricity produced by the initial clean
7    coal facility shall include:
8            (A) a formula contractual price (the "contract
9        price") approved pursuant to paragraph (4) of this
10        subsection (d), which shall:
11                (i) be determined using a cost of service
12            methodology employing either a level or deferred
13            capital recovery component, based on a capital
14            structure consisting of 45% equity and 55% debt,
15            and a return on equity as may be approved by the
16            Federal Energy Regulatory Commission, which in any
17            case may not exceed the lower of 11.5% or the rate
18            of return approved by the General Assembly
19            pursuant to paragraph (4) of this subsection (d);
20            and
21                (ii) provide that all miscellaneous net
22            revenue, including but not limited to net revenue
23            from the sale of emission allowances, if any,
24            substitute natural gas, if any, grants or other
25            support provided by the State of Illinois or the
26            United States Government, firm transmission

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB2408 Enrolled- 461 -LRB102 11366 BMS 16699 b

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

 

 

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

 

 

SB2408 Enrolled- 463 -LRB102 11366 BMS 16699 b

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

 

 

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

 

 

SB2408 Enrolled- 465 -LRB102 11366 BMS 16699 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        result in the procurement of cost-effective zero
2        emission credits, then the Commission shall, after
3        notice and hearing, but no later than 45 days after the
4        Agency filed the plan, approve the plan or approve
5        with modification. For purposes of this subsection
6        (d-5), "cost effective" means the projected costs of
7        procuring zero emission credits from zero emission
8        facilities do not cause the limit stated in paragraph
9        (2) of this subsection to be exceeded.
10            (C-5) As part of the Commission's review and
11        acceptance or rejection of the procurement results,
12        the Commission shall, in its public notice of
13        successful bidders:
14                (i) identify how the winning bids satisfy the
15            public interest criteria described in subparagraph
16            (C) of this paragraph (1) of minimizing carbon
17            dioxide emissions that result from electricity
18            consumed in Illinois and minimizing sulfur
19            dioxide, nitrogen oxide, and particulate matter
20            emissions that adversely affect the citizens of
21            this State;
22                (ii) specifically address how the selection of
23            winning bids takes into account the incremental
24            environmental benefits resulting from the
25            procurement, including any existing environmental
26            benefits that are preserved by the procurements

 

 

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1            held under Public Act 99-906 and would have ceased
2            to exist if the procurements had not been held,
3            such as the preservation of zero emission
4            facilities;
5                (iii) quantify the environmental benefit of
6            preserving the resources identified in item (ii)
7            of this subparagraph (C-5), including the
8            following:
9                    (aa) the value of avoided greenhouse gas
10                emissions measured as the product of the zero
11                emission facilities' output over the contract
12                term multiplied by the U.S. Environmental
13                Protection Agency eGrid subregion carbon
14                dioxide emission rate and the U.S. Interagency
15                Working Group on Social Cost of Carbon's price
16                in the August 2016 Technical Update using a 3%
17                discount rate, adjusted for inflation for each
18                delivery year; and
19                    (bb) the costs of replacement with other
20                zero carbon dioxide resources, including wind
21                and photovoltaic, based upon the simple
22                average of the following:
23                        (I) the price, or if there is more
24                    than one price, the average of the prices,
25                    paid for renewable energy credits from new
26                    utility-scale wind projects in the

 

 

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1                    procurement events specified in item (i)
2                    of subparagraph (G) of paragraph (1) of
3                    subsection (c) of this Section; and
4                        (II) the price, or if there is more
5                    than one price, the average of the prices,
6                    paid for renewable energy credits from new
7                    utility-scale solar projects and
8                    brownfield site photovoltaic projects in
9                    the procurement events specified in item
10                    (ii) of subparagraph (G) of paragraph (1)
11                    of subsection (c) of this Section and,
12                    after January 1, 2015, renewable energy
13                    credits from photovoltaic distributed
14                    generation projects in procurement events
15                    held under subsection (c) of this Section.
16            Each utility shall enter into binding contractual
17        arrangements with the winning suppliers.
18            The procurement described in this subsection
19        (d-5), including, but not limited to, the execution of
20        all contracts procured, shall be completed no later
21        than May 10, 2017. Based on the effective date of
22        Public Act 99-906, the Agency and Commission may, as
23        appropriate, modify the various dates and timelines
24        under this subparagraph and subparagraphs (C) and (D)
25        of this paragraph (1). The procurement and plan
26        approval processes required by this subsection (d-5)

 

 

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1        shall be conducted in conjunction with the procurement
2        and plan approval processes required by subsection (c)
3        of this Section and Section 16-111.5 of the Public
4        Utilities Act, to the extent practicable.
5        Notwithstanding whether a procurement event is
6        conducted under Section 16-111.5 of the Public
7        Utilities Act, the Agency shall immediately initiate a
8        procurement process on June 1, 2017 (the effective
9        date of Public Act 99-906).
10            (D) Following the procurement event described in
11        this paragraph (1) and consistent with subparagraph
12        (B) of this paragraph (1), the Agency shall calculate
13        the payments to be made under each contract for the
14        next delivery year based on the market price index for
15        that delivery year. The Agency shall publish the
16        payment calculations no later than May 25, 2017 and
17        every May 25 thereafter.
18            (E) Notwithstanding the requirements of this
19        subsection (d-5), the contracts executed under this
20        subsection (d-5) shall provide that the zero emission
21        facility may, as applicable, suspend or terminate
22        performance under the contracts in the following
23        instances:
24                (i) A zero emission facility shall be excused
25            from its performance under the contract for any
26            cause beyond the control of the resource,

 

 

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1            including, but not restricted to, acts of God,
2            flood, drought, earthquake, storm, fire,
3            lightning, epidemic, war, riot, civil disturbance
4            or disobedience, labor dispute, labor or material
5            shortage, sabotage, acts of public enemy,
6            explosions, orders, regulations or restrictions
7            imposed by governmental, military, or lawfully
8            established civilian authorities, which, in any of
9            the foregoing cases, by exercise of commercially
10            reasonable efforts the zero emission facility
11            could not reasonably have been expected to avoid,
12            and which, by the exercise of commercially
13            reasonable efforts, it has been unable to
14            overcome. In such event, the zero emission
15            facility shall be excused from performance for the
16            duration of the event, including, but not limited
17            to, delivery of zero emission credits, and no
18            payment shall be due to the zero emission facility
19            during the duration of the event.
20                (ii) A zero emission facility shall be
21            permitted to terminate the contract if legislation
22            is enacted into law by the General Assembly that
23            imposes or authorizes a new tax, special
24            assessment, or fee on the generation of
25            electricity, the ownership or leasehold of a
26            generating unit, or the privilege or occupation of

 

 

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1            such generation, ownership, or leasehold of
2            generation units by a zero emission facility.
3            However, the provisions of this item (ii) do not
4            apply to any generally applicable tax, special
5            assessment or fee, or requirements imposed by
6            federal law.
7                (iii) A zero emission facility shall be
8            permitted to terminate the contract in the event
9            that the resource requires capital expenditures in
10            excess of $40,000,000 that were neither known nor
11            reasonably foreseeable at the time it executed the
12            contract and that a prudent owner or operator of
13            such resource would not undertake.
14                (iv) A zero emission facility shall be
15            permitted to terminate the contract in the event
16            the Nuclear Regulatory Commission terminates the
17            resource's license.
18            (F) If the zero emission facility elects to
19        terminate a contract under subparagraph (E) of this
20        paragraph (1), then the Commission shall reopen the
21        docket in which the Commission approved the zero
22        emission standard procurement plan under subparagraph
23        (C) of this paragraph (1) and, after notice and
24        hearing, enter an order acknowledging the contract
25        termination election if such termination is consistent
26        with the provisions of this subsection (d-5).

 

 

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1        (2) For purposes of this subsection (d-5), the amount
2    paid per kilowatthour means the total amount paid for
3    electric service expressed on a per kilowatthour basis.
4    For purposes of this subsection (d-5), the total amount
5    paid for electric service includes, without limitation,
6    amounts paid for supply, transmission, distribution,
7    surcharges, and add-on taxes.
8        Notwithstanding the requirements of this subsection
9    (d-5), the contracts executed under this subsection (d-5)
10    shall provide that the total of zero emission credits
11    procured under a procurement plan shall be subject to the
12    limitations of this paragraph (2). For each delivery year,
13    the contractual volume receiving payments in such year
14    shall be reduced for all retail customers based on the
15    amount necessary to limit the net increase that delivery
16    year to the costs of those credits included in the amounts
17    paid by eligible retail customers in connection with
18    electric service to no more than 1.65% of the amount paid
19    per kilowatthour by eligible retail customers during the
20    year ending May 31, 2009. The result of this computation
21    shall apply to and reduce the procurement for all retail
22    customers, and all those customers shall pay the same
23    single, uniform cents per kilowatthour charge under
24    subsection (k) of Section 16-108 of the Public Utilities
25    Act. To arrive at a maximum dollar amount of zero emission
26    credits to be paid for the particular delivery year, the

 

 

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1    resulting per kilowatthour amount shall be applied to the
2    actual amount of kilowatthours of electricity delivered by
3    the electric utility in the delivery year immediately
4    prior to the procurement, to all retail customers in its
5    service territory. Unpaid contractual volume for any
6    delivery year shall be paid in any subsequent delivery
7    year in which such payments can be made without exceeding
8    the amount specified in this paragraph (2). The
9    calculations required by this paragraph (2) shall be made
10    only once for each procurement plan year. Once the
11    determination as to the amount of zero emission credits to
12    be paid is made based on the calculations set forth in this
13    paragraph (2), no subsequent rate impact determinations
14    shall be made and no adjustments to those contract amounts
15    shall be allowed. All costs incurred under those contracts
16    and in implementing this subsection (d-5) shall be
17    recovered by the electric utility as provided in this
18    Section.
19        No later than June 30, 2019, the Commission shall
20    review the limitation on the amount of zero emission
21    credits procured under this subsection (d-5) and report to
22    the General Assembly its findings as to whether that
23    limitation unduly constrains the procurement of
24    cost-effective zero emission credits.
25        (3) Six years after the execution of a contract under
26    this subsection (d-5), the Agency shall determine whether

 

 

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1    the actual zero emission credit payments received by the
2    supplier over the 6-year period exceed the Average ZEC
3    Payment. In addition, at the end of the term of a contract
4    executed under this subsection (d-5), or at the time, if
5    any, a zero emission facility's contract is terminated
6    under subparagraph (E) of paragraph (1) of this subsection
7    (d-5), then the Agency shall determine whether the actual
8    zero emission credit payments received by the supplier
9    over the term of the contract exceed the Average ZEC
10    Payment, after taking into account any amounts previously
11    credited back to the utility under this paragraph (3). If
12    the Agency determines that the actual zero emission credit
13    payments received by the supplier over the relevant period
14    exceed the Average ZEC Payment, then the supplier shall
15    credit the difference back to the utility. The amount of
16    the credit shall be remitted to the applicable electric
17    utility no later than 120 days after the Agency's
18    determination, which the utility shall reflect as a credit
19    on its retail customer bills as soon as practicable;
20    however, the credit remitted to the utility shall not
21    exceed the total amount of payments received by the
22    facility under its contract.
23        For purposes of this Section, the Average ZEC Payment
24    shall be calculated by multiplying the quantity of zero
25    emission credits delivered under the contract times the
26    average contract price. The average contract price shall

 

 

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1    be determined by subtracting the amount calculated under
2    subparagraph (B) of this paragraph (3) from the amount
3    calculated under subparagraph (A) of this paragraph (3),
4    as follows:
5            (A) The average of the Social Cost of Carbon, as
6        defined in subparagraph (B) of paragraph (1) of this
7        subsection (d-5), during the term of the contract.
8            (B) The average of the market price indices, as
9        defined in subparagraph (B) of paragraph (1) of this
10        subsection (d-5), during the term of the contract,
11        minus the baseline market price index, as defined in
12        subparagraph (B) of paragraph (1) of this subsection
13        (d-5).
14        If the subtraction yields a negative number, then the
15    Average ZEC Payment shall be zero.
16        (4) Cost-effective zero emission credits procured from
17    zero emission facilities shall satisfy the applicable
18    definitions set forth in Section 1-10 of this Act.
19        (5) The electric utility shall retire all zero
20    emission credits used to comply with the requirements of
21    this subsection (d-5).
22        (6) Electric utilities shall be entitled to recover
23    all of the costs associated with the procurement of zero
24    emission credits through an automatic adjustment clause
25    tariff in accordance with subsection (k) and (m) of
26    Section 16-108 of the Public Utilities Act, and the

 

 

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1    contracts executed under this subsection (d-5) shall
2    provide that the utilities' payment obligations under such
3    contracts shall be reduced if an adjustment is required
4    under subsection (m) of Section 16-108 of the Public
5    Utilities Act.
6        (7) This subsection (d-5) shall become inoperative on
7    January 1, 2028.
8    (d-10) Nuclear Plant Assistance; carbon mitigation
9credits.
10    (1) The General Assembly finds:
11        (A) The health, welfare, and prosperity of all
12    Illinois citizens require that the State of Illinois act
13    to avoid and not increase carbon emissions from electric
14    generation sources while continuing to ensure affordable,
15    stable, and reliable electricity to all citizens.
16        (B) Absent immediate action by the State to preserve
17    existing carbon-free energy resources, those resources may
18    retire, and the electric generation needs of Illinois'
19    retail customers may be met instead by facilities that
20    emit significant amounts of carbon pollution and other
21    harmful air pollutants at a high social and economic cost
22    until Illinois is able to develop other forms of clean
23    energy.
24        (C) The General Assembly finds that nuclear power
25    generation is necessary for the State's transition to 100%
26    clean energy, and ensuring continued operation of nuclear

 

 

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1    plants advances environmental and public health interests
2    through providing carbon-free electricity while reducing
3    the air pollution profile of the Illinois energy
4    generation fleet.
5        (D) The clean energy attributes of nuclear generation
6    facilities support the State in its efforts to achieve
7    100% clean energy.
8        (E) The State currently invests in various forms of
9    clean energy, including, but not limited to, renewable
10    energy, energy efficiency, and low-emission vehicles,
11    among others.
12        (F) The Environmental Protection Agency commissioned
13    an independent audit which provided a detailed assessment
14    of the financial condition of the Illinois nuclear fleet
15    to evaluate its financial viability and whether the
16    environmental benefits of such resources were at risk. The
17    report identified the risk of losing the environmental
18    benefits of several specific nuclear units. The report
19    also identified that the LaSalle County Generating Station
20    will continue to operate through 2026 and therefore is not
21    eligible to participate in the carbon mitigation credit
22    program.
23        (G) Nuclear plants provide carbon-free energy, which
24    helps to avoid many health-related negative impacts for
25    Illinois residents.
26        (H) The procurement of carbon mitigation credits

 

 

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1    representing the environmental benefits of carbon-free
2    generation will further the State's efforts at achieving
3    100% clean energy and decarbonizing the electricity sector
4    in a safe, reliable, and affordable manner. Further, the
5    procurement of carbon emission credits will enhance the
6    health and welfare of Illinois residents through decreased
7    reliance on more highly polluting generation.
8        (I) The General Assembly therefore finds it necessary
9    to establish carbon mitigation credits to ensure decreased
10    reliance on more carbon-intensive energy resources, for
11    transitioning to a fully decarbonized electricity sector,
12    and to help ensure health and welfare of the State's
13    residents.
14    (2) As used in this subsection:
15    "Baseline costs" means costs used to establish a customer
16protection cap that have been evaluated through an independent
17audit of a carbon-free energy resource conducted by the
18Environmental Protection Agency that evaluated projected
19annual costs for operation and maintenance expenses; fully
20allocated overhead costs, which shall be allocated using the
21methodology developed by the Institute for Nuclear Power
22Operations; fuel expenditures; nonfuel capital expenditures;
23spent fuel expenditures; a return on working capital; the cost
24of operational and market risks that could be avoided by
25ceasing operation; and any other costs necessary for continued
26operations, provided that "necessary" means, for purposes of

 

 

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1this definition, that the costs could reasonably be avoided
2only by ceasing operations of the carbon-free energy resource.
3    "Carbon mitigation credit" means a tradable credit that
4represents the carbon emission reduction attributes of one
5megawatt-hour of energy produced from a carbon-free energy
6resource.
7    "Carbon-free energy resource" means a generation facility
8that: (1) is fueled by nuclear power; and (2) is
9interconnected to PJM Interconnection, LLC.
10    (3) Procurement.
11        (A) Beginning with the delivery year commencing on
12    June 1, 2022, the Agency shall, for electric utilities
13    serving at least 3,000,000 retail customers in the State,
14    seek to procure contracts for no more than approximately
15    54,500,000 cost-effective carbon mitigation credits from
16    carbon-free energy resources because such credits are
17    necessary to support current levels of carbon-free energy
18    generation and ensure the State meets its carbon dioxide
19    emissions reduction goals. The Agency shall not make a
20    partial award of a contract for carbon mitigation credits
21    covering a fractional amount of a carbon-free energy
22    resource's projected output.
23        (B) Each carbon-free energy resource that intends to
24    participate in a procurement shall be required to submit
25    to the Agency the following information for the resource
26    on or before the date established by the Agency:

 

 

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1            (i) the in-service date and remaining useful life
2        of the carbon-free energy resource;
3            (ii) the amount of power generated annually for
4        each of the past 10 years, which shall be used to
5        determine the capability of each facility;
6            (iii) a commitment to be reflected in any contract
7        entered into pursuant to this subsection (d-10) to
8        continue operating the carbon-free energy resource at
9        a capacity factor of at least 88% annually on average
10        for the duration of the contract or contracts executed
11        under the procurement held under this subsection
12        (d-10), except in an instance described in
13        subparagraph (E) of paragraph (1) of subsection (d-5)
14        of this Section or made impracticable as a result of
15        compliance with law or regulation;
16            (iv) financial need and the risk of loss of the
17        environmental benefits of such resource, which shall
18        include the following information:
19                (I) the carbon-free energy resource's cost
20            projections, expressed on a per megawatt-hour
21            basis, over the next 5 delivery years, which shall
22            include the following: operation and maintenance
23            expenses; fully allocated overhead costs, which
24            shall be allocated using the methodology developed
25            by the Institute for Nuclear Power Operations;
26            fuel expenditures; nonfuel capital expenditures;

 

 

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1            spent fuel expenditures; a return on working
2            capital; the cost of operational and market risks
3            that could be avoided by ceasing operation; and
4            any other costs necessary for continued
5            operations, provided that "necessary" means, for
6            purposes of this subitem (I), that the costs could
7            reasonably be avoided only by ceasing operations
8            of the carbon-free energy resource; and
9                (II) the carbon-free energy resource's revenue
10            projections, including energy, capacity, ancillary
11            services, any other direct State support, known or
12            anticipated federal attribute credits, known or
13            anticipated tax credits, and any other direct
14            federal support.
15        The information described in this subparagraph (B) may
16    be submitted on a confidential basis and shall be treated
17    and maintained by the Agency, the procurement
18    administrator, and the Commission as confidential and
19    proprietary and exempt from disclosure under subparagraphs
20    (a) and (g) of paragraph (1) of Section 7 of the Freedom of
21    Information Act. The Office of the Attorney General shall
22    have access to, and maintain the confidentiality of, such
23    information pursuant to Section 6.5 of the Attorney
24    General Act.
25        (C) The Agency shall solicit bids for the contracts
26    described in this subsection (d-10) from carbon-free

 

 

SB2408 Enrolled- 487 -LRB102 11366 BMS 16699 b

1    energy resources that have satisfied the requirements of
2    subparagraph (B) of this paragraph (3). The contracts
3    procured pursuant to a procurement event shall reflect,
4    and be subject to, the following terms, requirements, and
5    limitations:
6            (i) Contracts are for delivery of carbon
7        mitigation credits, and are not energy or capacity
8        sales contracts requiring physical delivery. Pursuant
9        to item (iii), contract payments shall fully deduct
10        the value of any monetized federal production tax
11        credits, credits issued pursuant to a federal clean
12        energy standard, and other federal credits if
13        applicable.
14            (ii) Contracts for carbon mitigation credits shall
15        commence with the delivery year beginning on June 1,
16        2022 and shall be for a term of 5 delivery years
17        concluding on May 31, 2027.
18            (iii) The price per carbon mitigation credit to be
19        paid under a contract for a given delivery year shall
20        be equal to an accepted bid price less the sum of:
21                (I) one of the following energy price indices,
22            selected by the bidder at the time of the bid for
23            the term of the contract:
24                    (aa) the weighted-average hourly day-ahead
25                price for the applicable delivery year at the
26                busbar of all resources procured pursuant to

 

 

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1                this subsection (d-10), weighted by actual
2                production from the resources; or
3                    (bb) the projected energy price for the
4                PJM Interconnection, LLC Northern Illinois Hub
5                for the applicable delivery year determined
6                according to subitem (aa) of item (iii) of
7                subparagraph (B) of paragraph (1) of
8                subsection (d-5).
9                (II) the Base Residual Auction Capacity Price
10            for the ComEd zone as determined by PJM
11            Interconnection, LLC, divided by 24 hours per day,
12            for the applicable delivery year for the first 3
13            delivery years, and then any subsequent delivery
14            years unless the PJM Interconnection, LLC applies
15            the Minimum Offer Price Rule to participating
16            carbon-free energy resources because they supply
17            carbon mitigation credits pursuant to this Section
18            at which time, upon notice by the carbon-free
19            energy resource to the Commission and subject to
20            the Commission's confirmation, the value under
21            this subitem shall be zero, as further described
22            in the carbon mitigation credit procurement plan;
23            and
24                (III) any value of monetized federal tax
25            credits, direct payments, or similar subsidy
26            provided to the carbon-free energy resource from

 

 

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1            any unit of government that is not already
2            reflected in energy prices.
3            If the price-per-megawatt-hour calculation
4        performed under item (iii) of this subparagraph (C)
5        for a given delivery year results in a net positive
6        value, then the electric utility counterparty to the
7        contract shall multiply such net value by the
8        applicable contract quantity and remit the amount to
9        the supplier.
10            To protect retail customers from retail rate
11        impacts that may arise upon the initiation of carbon
12        policy changes, if the price-per-megawatt-hour
13        calculation performed under item (iii) of this
14        subparagraph (C) for a given delivery year results in
15        a net negative value, then the supplier counterparty
16        to the contract shall multiply such net value by the
17        applicable contract quantity and remit such amount to
18        the electric utility counterparty. The electric
19        utility shall reflect such amounts remitted by
20        suppliers as a credit on its retail customer bills as
21        soon as practicable.
22            (iv) to ensure that retail customers in Northern
23        Illinois do not pay more for carbon mitigation credits
24        than the value such credits provide, and
25        notwithstanding the provisions of this subsection
26        (d-10), the Agency shall not accept bids for contracts

 

 

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1        that exceed a customer protection cap equal to the
2        baseline costs of carbon-free energy resources.
3            The baseline costs for the applicable year shall
4        be the following:
5                (I) For the delivery year beginning June 1,
6            2022, the baseline costs shall be an amount equal
7            to $30.30 per megawatt-hour.
8                (II) For the delivery year beginning June 1,
9            2023, the baseline costs shall be an amount equal
10            to $32.50 per megawatt-hour.
11                (III) For the delivery year beginning June 1,
12            2024, the baseline costs shall be an amount equal
13            to $33.43 per megawatt-hour.
14                (IV) For the delivery year beginning June 1,
15            2025, the baseline costs shall be an amount equal
16            to $33.50 per megawatt-hour.
17                (V) For the delivery year beginning June 1,
18            2026, the baseline costs shall be an amount equal
19            to $34.50 per megawatt-hour.
20            An Environmental Protection Agency consultant
21        forecast, included in a report issued April 14, 2021,
22        projects that a carbon-free energy resource has the
23        opportunity to earn on average approximately $30.28
24        per megawatt-hour, for the sale of energy and capacity
25        during the time period between 2022 and 2027.
26        Therefore, the sale of carbon mitigation credits

 

 

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1        provides the opportunity to receive an additional
2        amount per megawatt-hour in addition to the projected
3        prices for energy and capacity.
4            Although actual energy and capacity prices may
5        vary from year-to-year, the General Assembly finds
6        that this customer protection cap will help ensure
7        that the cost of carbon mitigation credits will be
8        less than its value, based upon the social cost of
9        carbon identified in the Technical Support Document
10        issued in February 2021 by the U.S. Interagency
11        Working Group on Social Cost of Greenhouse Gases and
12        the PJM Interconnection, LLC carbon dioxide marginal
13        emission rate for 2020, and that a carbon-free energy
14        resource receiving payment for carbon mitigation
15        credits receives no more than necessary to keep those
16        units in operation.
17        (D) No later than 7 days after the effective date of
18    this amendatory Act of the 102nd General Assembly, the
19    Agency shall publish its proposed carbon mitigation credit
20    procurement plan. The Plan shall provide that winning bids
21    shall be selected by taking into consideration which
22    resources best match public interest criteria that
23    include, but are not limited to, minimizing carbon dioxide
24    emissions that result from electricity consumed in
25    Illinois and minimizing sulfur dioxide, nitrogen oxide,
26    and particulate matter emissions that adversely affect the

 

 

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1    citizens of this State. The selection of winning bids
2    shall also take into account the incremental environmental
3    benefits resulting from the procurement or procurements,
4    such as any existing environmental benefits that are
5    preserved by a procurement held under this subsection
6    (d-10) and would cease to exist if the procurement were
7    not held, including the preservation of carbon-free energy
8    resources. For those bidders having the same public
9    interest criteria score, the relative ranking of such
10    bidders shall be determined by price. The Plan shall
11    describe in detail how each public interest factor shall
12    be considered and weighted in the bid selection process to
13    ensure that the public interest criteria are applied to
14    the procurement. The Plan shall, to the extent practical
15    and permissible by federal law, ensure that successful
16    bidders make commercially reasonable efforts to apply for
17    federal tax credits, direct payments, or similar subsidy
18    programs that support carbon-free generation and for which
19    the successful bidder is eligible. Upon publishing of the
20    carbon mitigation credit procurement plan, copies of the
21    plan shall be posted and made publicly available on the
22    Agency's website. All interested parties shall have 7 days
23    following the date of posting to provide comment to the
24    Agency on the plan. All comments shall be posted to the
25    Agency's website. Following the end of the comment period,
26    but no more than 19 days later than the effective date of

 

 

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1    this amendatory Act of the 102nd General Assembly, the
2    Agency shall revise the plan as necessary based on the
3    comments received and file its carbon mitigation credit
4    procurement plan with the Commission.
5        (E) If the Commission determines that the plan is
6    likely to result in the procurement of cost-effective
7    carbon mitigation credits, then the Commission shall,
8    after notice and hearing and opportunity for comment, but
9    no later than 42 days after the Agency filed the plan,
10    approve the plan or approve it with modification. For
11    purposes of this subsection (d-10), "cost-effective" means
12    carbon mitigation credits that are procured from
13    carbon-free energy resources at prices that are within the
14    limits specified in this paragraph (3). As part of the
15    Commission's review and acceptance or rejection of the
16    procurement results, the Commission shall, in its public
17    notice of successful bidders:
18            (i) identify how the selected carbon-free energy
19        resources satisfy the public interest criteria
20        described in this paragraph (3) of minimizing carbon
21        dioxide emissions that result from electricity
22        consumed in Illinois and minimizing sulfur dioxide,
23        nitrogen oxide, and particulate matter emissions that
24        adversely affect the citizens of this State;
25            (ii) specifically address how the selection of
26        carbon-free energy resources takes into account the

 

 

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1        incremental environmental benefits resulting from the
2        procurement, including any existing environmental
3        benefits that are preserved by the procurements held
4        under this amendatory Act of the 102nd General
5        Assembly and would have ceased to exist if the
6        procurements had not been held, such as the
7        preservation of carbon-free energy resources;
8            (iii) quantify the environmental benefit of
9        preserving the carbon-free energy resources procured
10        pursuant to this subsection (d-10), including the
11        following:
12                (I) an assessment value of avoided greenhouse
13            gas emissions measured as the product of the
14            carbon-free energy resources' output over the
15            contract term, using generally accepted
16            methodologies for the valuation of avoided
17            emissions; and
18                (II) an assessment of costs of replacement
19            with other carbon-free energy resources and
20            renewable energy resources, including wind and
21            photovoltaic generation, based upon an assessment
22            of the prices paid for renewable energy credits
23            through programs and procurements conducted
24            pursuant to subsection (c) of Section 1-75 of this
25            Act, and the additional storage necessary to
26            produce the same or similar capability of matching

 

 

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1            customer usage patterns.
2        (F) The procurements described in this paragraph (3),
3    including, but not limited to, the execution of all
4    contracts procured, shall be completed no later than
5    December 3, 2021. The procurement and plan approval
6    processes required by this paragraph (3) shall be
7    conducted in conjunction with the procurement and plan
8    approval processes required by Section 16-111.5 of the
9    Public Utilities Act, to the extent practicable. However,
10    the Agency and Commission may, as appropriate, modify the
11    various dates and timelines under this subparagraph and
12    subparagraphs (D) and (E) of this paragraph (3) to meet
13    the December 3, 2021 contract execution deadline.
14    Following the completion of such procurements, and
15    consistent with this paragraph (3), the Agency shall
16    calculate the payments to be made under each contract in a
17    timely fashion.
18        (F-1) Costs incurred by the electric utility pursuant
19    to a contract authorized by this subsection (d-10) shall
20    be deemed prudently incurred and reasonable in amount, and
21    the electric utility shall be entitled to full cost
22    recovery pursuant to a tariff or tariffs filed with the
23    Commission.
24        (G) The counterparty electric utility shall retire all
25    carbon mitigation credits used to comply with the
26    requirements of this subsection (d-10).

 

 

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1        (H) If a carbon-free energy resource is sold to
2    another owner, the rights, obligations, and commitments
3    under this subsection (d-10) shall continue to the
4    subsequent owner.
5        (I) This subsection (d-10) shall become inoperative on
6    January 1, 2028.
7    (e) The draft procurement plans are subject to public
8comment, as required by Section 16-111.5 of the Public
9Utilities Act.
10    (f) The Agency shall submit the final procurement plan to
11the Commission. The Agency shall revise a procurement plan if
12the Commission determines that it does not meet the standards
13set forth in Section 16-111.5 of the Public Utilities Act.
14    (g) The Agency shall assess fees to each affected utility
15to recover the costs incurred in preparation of the annual
16procurement plan for the utility.
17    (h) The Agency shall assess fees to each bidder to recover
18the costs incurred in connection with a competitive
19procurement process.
20    (i) A renewable energy credit, carbon emission credit, or
21zero emission credit, or carbon mitigation credit can only be
22used once to comply with a single portfolio or other standard
23as set forth in subsection (c), subsection (d), or subsection
24(d-5) of this Section, respectively. A renewable energy
25credit, carbon emission credit, or zero emission credit, or
26carbon mitigation credit cannot be used to satisfy the

 

 

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1requirements of more than one standard. If more than one type
2of credit is issued for the same megawatt hour of energy, only
3one credit can be used to satisfy the requirements of a single
4standard. After such use, the credit must be retired together
5with any other credits issued for the same megawatt hour of
6energy.
7(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
8101-113, eff. 1-1-20.)
 
9    (20 ILCS 3855/1-92)
10    Sec. 1-92. Aggregation of electrical load by
11municipalities, townships, and counties.
12    (a) The corporate authorities of a municipality, township
13board, or county board of a county may adopt an ordinance under
14which it may aggregate in accordance with this Section
15residential and small commercial retail electrical loads
16located, respectively, within the municipality, the township,
17or the unincorporated areas of the county and, for that
18purpose, may solicit bids and enter into service agreements to
19facilitate for those loads the sale and purchase of
20electricity and related services and equipment.
21    The corporate authorities, township board, or county board
22may also exercise such authority jointly with any other
23municipality, township, or county. Two or more municipalities,
24townships, or counties, or a combination of both, may initiate
25a process jointly to authorize aggregation by a majority vote

 

 

SB2408 Enrolled- 498 -LRB102 11366 BMS 16699 b

1of each particular municipality, township, or county as
2required by this Section.
3    If the corporate authorities, township board, or the
4county board seek to operate the aggregation program as an
5opt-out program for residential and small commercial retail
6customers, then prior to the adoption of an ordinance with
7respect to aggregation of residential and small commercial
8retail electric loads, the corporate authorities of a
9municipality, the township board, or the county board of a
10county shall submit a referendum to its residents to determine
11whether or not the aggregation program shall operate as an
12opt-out program for residential and small commercial retail
13customers. Any county board that seeks to submit such a
14referendum to its residents shall do so only in unincorporated
15areas of the county where no electric aggregation ordinance
16has been adopted.
17    In addition to the notice and conduct requirements of the
18general election law, notice of the referendum shall state
19briefly the purpose of the referendum. The question of whether
20the corporate authorities, the township board, or the county
21board shall adopt an opt-out aggregation program for
22residential and small commercial retail customers shall be
23submitted to the electors of the municipality, township board,
24or county board at a regular election and approved by a
25majority of the electors voting on the question. The corporate
26authorities, township board, or county board must certify to

 

 

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1the proper election authority, which must submit the question
2at an election in accordance with the Election Code.
3    The election authority must submit the question in
4substantially the following form:
5        Shall the (municipality, township, or county in which
6    the question is being voted upon) have the authority to
7    arrange for the supply of electricity for its residential
8    and small commercial retail customers who have not opted
9    out of such program?
10The election authority must record the votes as "Yes" or "No".
11    If a majority of the electors voting on the question vote
12in the affirmative, then the corporate authorities, township
13board, or county board may implement an opt-out aggregation
14program for residential and small commercial retail customers.
15    A referendum must pass in each particular municipality,
16township, or county that is engaged in the aggregation
17program. If the referendum fails, then the corporate
18authorities, township board, or county board shall operate the
19aggregation program as an opt-in program for residential and
20small commercial retail customers.
21    An ordinance under this Section shall specify whether the
22aggregation will occur only with the prior consent of each
23person owning, occupying, controlling, or using an electric
24load center proposed to be aggregated. Nothing in this
25Section, however, authorizes the aggregation of electric loads
26that are served or authorized to be served by an electric

 

 

SB2408 Enrolled- 500 -LRB102 11366 BMS 16699 b

1cooperative as defined by and pursuant to the Electric
2Supplier Act or loads served by a municipality that owns and
3operates its own electric distribution system. No aggregation
4shall take effect unless approved by a majority of the members
5of the corporate authority, township board, or county board
6voting upon the ordinance.
7    A governmental aggregator under this Section is not a
8public utility or an alternative retail electric supplier.
9    For purposes of this Section, "township" means the portion
10of a township that is an unincorporated portion of a county
11that is not otherwise a part of a municipality. In addition to
12such other limitations as are included in this Section, a
13township board shall only have authority to aggregate
14residential and small commercial customer loads in accordance
15with this Section if the county board of the county in which
16the township is located (i) is not also submitting a
17referendum to its residents at the same general election that
18the township board proposes to submit a referendum under this
19subsection (a), (ii) has not received authorization through
20passage of a referendum to operate an opt-out aggregation
21program for residential and small commercial retail customers
22under this subsection (a), and (iii) has not otherwise enacted
23an ordinance under this subsection (a) authorizing the
24operation of an opt-in aggregation program for residential and
25small commercial retail customers as described in this
26Section.

 

 

SB2408 Enrolled- 501 -LRB102 11366 BMS 16699 b

1    (b) Upon the applicable requisite authority under this
2Section, the corporate authorities, the township board, or the
3county board, with assistance from the Illinois Power Agency,
4shall develop a plan of operation and governance for the
5aggregation program so authorized. Before adopting a plan
6under this Section, the corporate authorities, township board,
7or county board shall hold at least 2 public hearings on the
8plan. Before the first hearing, the corporate authorities,
9township board, or county board shall publish notice of the
10hearings once a week for 2 consecutive weeks in a newspaper of
11general circulation in the jurisdiction. The notice shall
12summarize the plan and state the date, time, and location of
13each hearing. Any load aggregation plan established pursuant
14to this Section shall:
15        (1) provide for universal access to all applicable
16    residential customers and equitable treatment of
17    applicable residential customers;
18        (2) describe demand management and energy efficiency
19    services to be provided to each class of customers; and
20        (3) meet any requirements established by law
21    concerning aggregated service offered pursuant to this
22    Section.
23    (c) The process for soliciting bids for electricity and
24other related services and awarding proposed agreements for
25the purchase of electricity and other related services shall
26be conducted in the following order:

 

 

SB2408 Enrolled- 502 -LRB102 11366 BMS 16699 b

1        (1) The corporate authorities, township board, or
2    county board may solicit bids for electricity and other
3    related services. The bid specifications may include a
4    provision requiring the bidder to disclose the fuel type
5    of electricity to be procured or generated on behalf of
6    the aggregation program customers. The corporate
7    authorities, township board, or county board may consider
8    the proposed source of electricity to be procured or
9    generated to be put into the grid on behalf of aggregation
10    program customers in the competitive bidding process. The
11    Agency and Commission may collaborate to issue joint
12    guidance on voluntary uniform standards for bidder
13    disclosures of the source of electricity to be procured or
14    generated to be put into the grid on behalf of aggregation
15    program customers.
16        (1.5) A township board shall request from the electric
17    utility those residential and small commercial customers
18    within their aggregate area either by zip code or zip
19    codes or other means as determined by the electric
20    utility. The electric utility shall then provide to the
21    township board the residential and small commercial
22    customers, including the names and addresses of
23    residential and small commercial customers,
24    electronically. The township board shall be responsible
25    for authenticating the residential and small commercial
26    customers contained in this listing and providing edits of

 

 

SB2408 Enrolled- 503 -LRB102 11366 BMS 16699 b

1    the data to affirm, add, or delete the residential and
2    small commercial customers located within its
3    jurisdiction. The township board shall provide the edited
4    list to the electric utility in an electronic format or
5    other means selected by the electric utility and certify
6    that the information is accurate.
7        (2) Notwithstanding Section 16-122 of the Public
8    Utilities Act and Section 2HH of the Consumer Fraud and
9    Deceptive Business Practices Act, an electric utility that
10    provides residential and small commercial retail electric
11    service in the aggregate area must, upon request of the
12    corporate authorities, township board, or the county board
13    in the aggregate area, submit to the requesting party, in
14    an electronic format, those account numbers, names, and
15    addresses of residential and small commercial retail
16    customers in the aggregate area that are reflected in the
17    electric utility's records at the time of the request;
18    provided, however, that any township board has first
19    provided an accurate customer list to the electric utility
20    as provided for herein.
21    Any corporate authority, township board, or county board
22receiving customer information from an electric utility shall
23be subject to the limitations on the disclosure of the
24information described in Section 16-122 of the Public
25Utilities Act and Section 2HH of the Consumer Fraud and
26Deceptive Business Practices Act, and an electric utility

 

 

SB2408 Enrolled- 504 -LRB102 11366 BMS 16699 b

1shall not be held liable for any claims arising out of the
2provision of information pursuant to this item (2).
3    (d) If the corporate authorities, township board, or
4county board operate under an opt-in program for residential
5and small commercial retail customers, then the corporate
6authorities, township board, or county board shall comply with
7all of the following:
8        (1) Within 60 days after receiving the bids, the
9    corporate authorities, township board, or county board
10    shall allow residential and small commercial retail
11    customers to commit to the terms and conditions of a bid
12    that has been selected by the corporate authorities,
13    township board, or county board.
14        (2) If (A) the corporate authorities, township board,
15    or county board award proposed agreements for the purchase
16    of electricity and other related services and (B) an
17    agreement is reached between the corporate authorities,
18    township board, or county board for those services, then
19    customers committed to the terms and conditions according
20    to item (1) of this subsection (d) shall be committed to
21    the agreement.
22    (e) If the corporate authorities, township board, or
23county board operate as an opt-out program for residential and
24small commercial retail customers, then it shall be the duty
25of the aggregated entity to fully inform residential and small
26commercial retail customers in advance that they have the

 

 

SB2408 Enrolled- 505 -LRB102 11366 BMS 16699 b

1right to opt out of the aggregation program. The disclosure
2shall prominently state all charges to be made and shall
3include full disclosure of the cost to obtain service pursuant
4to Section 16-103 of the Public Utilities Act, how to access
5it, and the fact that it is available to them without penalty,
6if they are currently receiving service under that Section.
7The Illinois Power Agency shall furnish, without charge, to
8any citizen a list of all supply options available to them in a
9format that allows comparison of prices and products.
10    (f) Any person or entity retained by a municipality or
11county, or jointly by more than one such unit of local
12government, to provide input, guidance, or advice in the
13selection of an electricity supplier for an aggregation
14program shall disclose in writing to the involved units of
15local government the nature of any relationship through which
16the person or entity may receive, either directly or
17indirectly, commissions or other remuneration as a result of
18the selection of any particular electricity supplier. The
19written disclosure must be made prior to formal approval by
20the involved units of local government of any professional
21services agreement with the person or entity, or no later than
22October 1, 2012 with respect to any such professional services
23agreement entered into prior to the effective date of this
24amendatory Act of the 97th General Assembly. The disclosure
25shall cover all direct and indirect relationships through
26which commissions or remuneration may result, including the

 

 

SB2408 Enrolled- 506 -LRB102 11366 BMS 16699 b

1pooling of commissions or remuneration among multiple persons
2or entities, and shall identify all involved electricity
3suppliers. The disclosure requirements in this subsection (f)
4are to be liberally construed to ensure that the nature of
5financial interests are fully revealed, and these disclosure
6requirements shall apply regardless of whether the involved
7person or entity is licensed under Section 16-115C of the
8Public Utilities Act. Any person or entity that fails to make
9the disclosure required under this subsection (f) is liable to
10the involved units of local government in an amount equal to
11all compensation paid to such person or entity by the units of
12local government for the input, guidance, or advice in the
13selection of an electricity supplier, plus reasonable
14attorneys fees and court costs incurred by the units of local
15government in connection with obtaining such amount.
16    (g) The Illinois Power Agency shall provide assistance to
17municipalities, townships, counties, or associations working
18with municipalities to help complete the plan and bidding
19process.
20    (h) This Section does not prohibit municipalities or
21counties from entering into an intergovernmental agreement to
22aggregate residential and small commercial retail electric
23loads.
24    (i) No later than June 1, 2023, the Illinois Power Agency
25shall produce a report assessing how aggregation of electrical
26load by municipalities, townships, and counties can be used to

 

 

SB2408 Enrolled- 507 -LRB102 11366 BMS 16699 b

1help meet the renewable energy goals outlined in this Act.
2This report shall contain, at a minimum, an assessment of
3other states' utilization of load aggregation in meeting
4renewable energy goals, any known or expected barriers in
5utilizing load aggregation for meeting renewable energy goals,
6and recommendations for possible changes in State law
7necessary for electrical load aggregation to be a driver of
8new renewable energy project development. This report shall be
9published on the Agency's website and delivered to the
10Governor and General Assembly. To assist with developing this
11report, the Agency may retain the services of its expert
12consulting firm used to develop its procurement plans as
13provided in paragraph (1) of subsection (a) of Section 1-75.
14(Source: P.A. 97-338, eff. 8-12-11; 97-823, eff. 7-18-12;
1597-1067, eff. 8-24-12; 98-404, eff. 1-1-14; 98-434, eff.
161-1-14; 98-463, eff. 8-16-13; 98-756, eff. 7-16-14.)
 
17    (20 ILCS 3855/1-125)
18    Sec. 1-125. Agency annual reports.
19    (a) By February 15 of each year, the Agency shall report
20annually to the Governor and the General Assembly on the
21operations and transactions of the Agency. The annual report
22shall include, but not be limited to, each of the following:
23        (1) The average quantity, price, and term of all
24    contracts for electricity procured under the procurement
25    plans for electric utilities.

 

 

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1        (2) (Blank).
2        (3) The quantity, price, and rate impact of all energy
3    efficiency and demand response measures purchased for
4    electric utilities, and any measures included in the
5    procurement plan pursuant to Section 16-111.5B of the
6    Public Utilities Act.
7        (4) The amount of power and energy produced by each
8    Agency facility.
9        (5) The quantity of electricity supplied by each
10    Agency facility to municipal electric systems,
11    governmental aggregators, or rural electric cooperatives
12    in Illinois.
13        (6) The revenues as allocated by the Agency to each
14    facility.
15        (7) The costs as allocated by the Agency to each
16    facility.
17        (8) The accumulated depreciation for each facility.
18        (9) The status of any projects under development.
19        (10) Basic financial and operating information
20    specifically detailed for the reporting year and
21    including, but not limited to, income and expense
22    statements, balance sheets, and changes in financial
23    position, all in accordance with generally accepted
24    accounting principles, debt structure, and a summary of
25    funds on a cash basis.
26        (11) The average quantity, price, contract type and

 

 

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1    term, and rate impact of all renewable resources procured
2    purchased under the long-term renewable resources
3    electricity procurement plans for electric utilities.
4        (12) A comparison of the costs associated with the
5    Agency's procurement of renewable energy resources to (A)
6    the Agency's costs associated with electricity generated
7    by other types of generation facilities and (B) the
8    benefits associated with the Agency's procurement of
9    renewable energy resources.
10        (13) An analysis of the rate impacts associated with
11    the Illinois Power Agency's procurement of renewable
12    resources, including, but not limited to, any long-term
13    contracts, on the eligible retail customers of electric
14    utilities. The analysis shall include the Agency's
15    estimate of the total dollar impact that the Agency's
16    procurement of renewable resources has had on the annual
17    electricity bills of the customer classes that comprise
18    each eligible retail customer class taking service from an
19    electric utility.
20        (14) (Blank). An analysis of how the operation of the
21    alternative compliance payment mechanism, any long-term
22    contracts, or other aspects of the applicable renewable
23    portfolio standards impacts the rates of customers of
24    alternative retail electric suppliers.
25    (b) In addition to reporting on the transactions and
26operations of the Agency, the Agency shall also endeavor to

 

 

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1report on the following items through its annual report,
2recognizing that full and accurate information may not be
3available for certain items:
4        (1) The overall nameplate capacity amount of installed
5    and scheduled renewable energy generation capacity
6    physically located in Illinois.
7        (2) The percentage of installed and scheduled
8    renewable energy generation capacity as a share of overall
9    electricity generation capacity physically located in
10    Illinois.
11        (3) The amount of megawatt hours produced by renewable
12    energy generation capacity physically located in Illinois
13    for the preceding delivery year.
14        (4) The percentage of megawatt hours produced by
15    renewable energy generation capacity physically located in
16    Illinois as a share of overall electricity generation from
17    facilities physically located in Illinois for the
18    preceding delivery year.
19        (5) The renewable portfolio standard expenditures made
20    pursuant to paragraph (1) of subsection (c) of Section
21    1-75 and the total scheduled and installed renewable
22    generation capacity expected to result from these
23    investments. This information shall include the total cost
24    of REC delivery contracts of the renewable portfolio
25    standard by project category, including, but not limited
26    to, renewable energy credits delivery contracts entered

 

 

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1    into pursuant to subparagraphs (C), (G), (K), and (R) of
2    paragraph (1) of subsection (c) Section 1-75. The Agency
3    shall also report on the total amount of customer load
4    featuring renewable portfolio standard compliance
5    obligations scheduled to be met by self-direct customers
6    pursuant to subparagraph (R) of paragraph (1) of
7    subsection (c) of Section 1-75, as well as the minimum
8    annual quantities of renewable energy credits scheduled to
9    be retired by those customers and amount of installed
10    renewable energy generating capacity used to meet the
11    requirements of subparagraph (R) of paragraph (1) of
12    subsection (c) of Section 1-75.
13    The Agency may seek assistance from the Illinois Commerce
14Commission in developing its annual report and may also retain
15the services of its expert consulting firm used to develop its
16procurement plans as outlined in paragraph (1) of subsection
17(a) of Section 1-75. Confidential or commercially sensitive
18business information provided by retail customers, alternative
19retail electric suppliers, or other parties shall be kept
20confidential by the Agency consistent with Section 1-120, but
21may be publicly reported in aggregate form.
22(Source: P.A. 99-536, eff. 7-8-16.)
 
23    (20 ILCS 3855/1-128 new)
24    Sec. 1-128. Nonprofit Electric Generation Task Force.
25    (a) By January 1, 2028, the Nonprofit Electric Generation

 

 

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1Task Force shall be established to assess the technological,
2economic, and regulatory feasibility as well as legislative
3support mechanisms necessary to achieve the carbon emission
4reduction targets described in Section 9.15 of the
5Environmental Protection Act through the use of carbon
6capture, sequestration, and utilization technology.
7    (b) The Task Force shall consist of the following members:
8        (1) one representative of the Prairie Research
9    Institute at the University of Illinois, appointed by the
10    Governor with the advice and consent of the Senate;
11        (2) one representative of an association representing
12    municipal utilities, joint municipal electric power
13    agencies, or municipal electric generators with an
14    ownership interest in Prairie State Generating Company,
15    appointed by the Governor with the advice and consent of
16    the Senate;
17        (3) one representative of an association of electric
18    cooperatives with ownership interests in Prairie State
19    Generating Company, appointed by the Governor with the
20    advice and consent of the Senate;
21        (4) one representative of a labor union or building
22    trade with technical experience at a coal generation
23    facility, appointed by the Governor with the advice and
24    consent of the Senate;
25        (5) the Director of Natural Resources, or his or her
26    designee;

 

 

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1        (6) the Director of the Environmental Protection
2    Agency, or his or her designee;
3        (7) the Governor, or his or her designee;
4        (8) one expert in power sector reliability, appointed
5    by the Governor with the advice and consent of the Senate;
6        (9) one expert in financing large scale power sector
7    carbon reduction projects, appointed by the Governor with
8    the advice and consent of the Senate;
9        (10) one designee of the President of the Senate;
10        (11) one designee of the Speaker of the House;
11        (12) one designee of the Senate Minority Leader; and
12        (13) one designee of the House Minority Leader.
13    (c) The Task Force shall have the following duties:
14        (1) investigating the technical and financial options
15    to install carbon capture, sequestration, utilization, and
16    direct air capture at the Prairie State Generation Campus;
17        (2) assessing the existing regulatory construct and
18    any legislative support mechanisms necessary to reduce
19    carbon at the Prairie State Generating Company in
20    accordance with Section 9.15 of the Environmental
21    Protection Act; and
22        (3) preparing and filing a report with the Governor
23    and the General Assembly that sets forth the Task Force's
24    findings.
25    (d) The Task Force may hire an independent third-party
26auditor with relevant financial expertise to conduct a

 

 

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1financial audit of the Prairie State Generating Company,
2including an examination of potential financial solutions to
3alleviate the existing indirect debt obligations facing the
4joint indirect Prairie State Generating Company owners in
5Illinois. The audit shall include a review of the existing
6debt structure for the Prairie State Generating Company and
7the individual finances of each joint direct company owner in
8Illinois in order to recommend an appropriate and equitable
9method for allocating any funds, whether from the State or
10federal government, or any other legal source, that may be
11provided to support the joint indirect owners in Illinois. Any
12commercially sensitive information reviewed pursuant to this
13audit shall be reasonably redacted from the Task Force's final
14report and shall not be subject to disclosure under the
15Freedom of Information Act.
 
16    Section 90-35. The State Finance Act is amended by adding
17Sections 5.427, 5.935, 5.936, and 5.937 as follows:
 
18    (30 ILCS 105/5.427)
19    Sec. 5.427. The Electric Vehicle Rebate Alternate Fuels
20Fund.
21(Source: P.A. 89-410; 89-626, eff. 8-9-96.)
 
22    (30 ILCS 105/5.935 new)
23    Sec. 5.935. The Coal to Solar and Energy Storage

 

 

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1Initiative Fund.
 
2    (30 ILCS 105/5.936 new)
3    Sec. 5.936. The Energy Transition Assistance Fund.
 
4    (30 ILCS 105/5.937 new)
5    Sec. 5.937. The Consumer Intervenor Compensation Fund.
 
6    Section 90-36. The Illinois Procurement Code is amended by
7changing Section 1-10 as follows:
 
8    (30 ILCS 500/1-10)
9    Sec. 1-10. Application.
10    (a) This Code applies only to procurements for which
11bidders, offerors, potential contractors, or contractors were
12first solicited on or after July 1, 1998. This Code shall not
13be construed to affect or impair any contract, or any
14provision of a contract, entered into based on a solicitation
15prior to the implementation date of this Code as described in
16Article 99, including, but not limited to, any covenant
17entered into with respect to any revenue bonds or similar
18instruments. All procurements for which contracts are
19solicited between the effective date of Articles 50 and 99 and
20July 1, 1998 shall be substantially in accordance with this
21Code and its intent.
22    (b) This Code shall apply regardless of the source of the

 

 

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1funds with which the contracts are paid, including federal
2assistance moneys. This Code shall not apply to:
3        (1) Contracts between the State and its political
4    subdivisions or other governments, or between State
5    governmental bodies, except as specifically provided in
6    this Code.
7        (2) Grants, except for the filing requirements of
8    Section 20-80.
9        (3) Purchase of care, except as provided in Section
10    5-30.6 of the Illinois Public Aid Code and this Section.
11        (4) Hiring of an individual as employee and not as an
12    independent contractor, whether pursuant to an employment
13    code or policy or by contract directly with that
14    individual.
15        (5) Collective bargaining contracts.
16        (6) Purchase of real estate, except that notice of
17    this type of contract with a value of more than $25,000
18    must be published in the Procurement Bulletin within 10
19    calendar days after the deed is recorded in the county of
20    jurisdiction. The notice shall identify the real estate
21    purchased, the names of all parties to the contract, the
22    value of the contract, and the effective date of the
23    contract.
24        (7) Contracts necessary to prepare for anticipated
25    litigation, enforcement actions, or investigations,
26    provided that the chief legal counsel to the Governor

 

 

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1    shall give his or her prior approval when the procuring
2    agency is one subject to the jurisdiction of the Governor,
3    and provided that the chief legal counsel of any other
4    procuring entity subject to this Code shall give his or
5    her prior approval when the procuring entity is not one
6    subject to the jurisdiction of the Governor.
7        (8) (Blank).
8        (9) Procurement expenditures by the Illinois
9    Conservation Foundation when only private funds are used.
10        (10) (Blank).
11        (11) Public-private agreements entered into according
12    to the procurement requirements of Section 20 of the
13    Public-Private Partnerships for Transportation Act and
14    design-build agreements entered into according to the
15    procurement requirements of Section 25 of the
16    Public-Private Partnerships for Transportation Act.
17        (12) Contracts for legal, financial, and other
18    professional and artistic services entered into on or
19    before December 31, 2018 by the Illinois Finance Authority
20    in which the State of Illinois is not obligated. Such
21    contracts shall be awarded through a competitive process
22    authorized by the Board of the Illinois Finance Authority
23    and are subject to Sections 5-30, 20-160, 50-13, 50-20,
24    50-35, and 50-37 of this Code, as well as the final
25    approval by the Board of the Illinois Finance Authority of
26    the terms of the contract.

 

 

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1        (13) Contracts for services, commodities, and
2    equipment to support the delivery of timely forensic
3    science services in consultation with and subject to the
4    approval of the Chief Procurement Officer as provided in
5    subsection (d) of Section 5-4-3a of the Unified Code of
6    Corrections, except for the requirements of Sections
7    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
8    Code; however, the Chief Procurement Officer may, in
9    writing with justification, waive any certification
10    required under Article 50 of this Code. For any contracts
11    for services which are currently provided by members of a
12    collective bargaining agreement, the applicable terms of
13    the collective bargaining agreement concerning
14    subcontracting shall be followed.
15        On and after January 1, 2019, this paragraph (13),
16    except for this sentence, is inoperative.
17        (14) Contracts for participation expenditures required
18    by a domestic or international trade show or exhibition of
19    an exhibitor, member, or sponsor.
20        (15) Contracts with a railroad or utility that
21    requires the State to reimburse the railroad or utilities
22    for the relocation of utilities for construction or other
23    public purpose. Contracts included within this paragraph
24    (15) shall include, but not be limited to, those
25    associated with: relocations, crossings, installations,
26    and maintenance. For the purposes of this paragraph (15),

 

 

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1    "railroad" means any form of non-highway ground
2    transportation that runs on rails or electromagnetic
3    guideways and "utility" means: (1) public utilities as
4    defined in Section 3-105 of the Public Utilities Act, (2)
5    telecommunications carriers as defined in Section 13-202
6    of the Public Utilities Act, (3) electric cooperatives as
7    defined in Section 3.4 of the Electric Supplier Act, (4)
8    telephone or telecommunications cooperatives as defined in
9    Section 13-212 of the Public Utilities Act, (5) rural
10    water or waste water systems with 10,000 connections or
11    less, (6) a holder as defined in Section 21-201 of the
12    Public Utilities Act, and (7) municipalities owning or
13    operating utility systems consisting of public utilities
14    as that term is defined in Section 11-117-2 of the
15    Illinois Municipal Code.
16        (16) Procurement expenditures necessary for the
17    Department of Public Health to provide the delivery of
18    timely newborn screening services in accordance with the
19    Newborn Metabolic Screening Act.
20        (17) Procurement expenditures necessary for the
21    Department of Agriculture, the Department of Financial and
22    Professional Regulation, the Department of Human Services,
23    and the Department of Public Health to implement the
24    Compassionate Use of Medical Cannabis Program and Opioid
25    Alternative Pilot Program requirements and ensure access
26    to medical cannabis for patients with debilitating medical

 

 

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1    conditions in accordance with the Compassionate Use of
2    Medical Cannabis Program Act.
3        (18) This Code does not apply to any procurements
4    necessary for the Department of Agriculture, the
5    Department of Financial and Professional Regulation, the
6    Department of Human Services, the Department of Commerce
7    and Economic Opportunity, and the Department of Public
8    Health to implement the Cannabis Regulation and Tax Act if
9    the applicable agency has made a good faith determination
10    that it is necessary and appropriate for the expenditure
11    to fall within this exemption and if the process is
12    conducted in a manner substantially in accordance with the
13    requirements of Sections 20-160, 25-60, 30-22, 50-5,
14    50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
15    50-36, 50-37, 50-38, and 50-50 of this Code; however, for
16    Section 50-35, compliance applies only to contracts or
17    subcontracts over $100,000. Notice of each contract
18    entered into under this paragraph (18) that is related to
19    the procurement of goods and services identified in
20    paragraph (1) through (9) of this subsection shall be
21    published in the Procurement Bulletin within 14 calendar
22    days after contract execution. The Chief Procurement
23    Officer shall prescribe the form and content of the
24    notice. Each agency shall provide the Chief Procurement
25    Officer, on a monthly basis, in the form and content
26    prescribed by the Chief Procurement Officer, a report of

 

 

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1    contracts that are related to the procurement of goods and
2    services identified in this subsection. At a minimum, this
3    report shall include the name of the contractor, a
4    description of the supply or service provided, the total
5    amount of the contract, the term of the contract, and the
6    exception to this Code utilized. A copy of any or all of
7    these contracts shall be made available to the Chief
8    Procurement Officer immediately upon request. The Chief
9    Procurement Officer shall submit a report to the Governor
10    and General Assembly no later than November 1 of each year
11    that includes, at a minimum, an annual summary of the
12    monthly information reported to the Chief Procurement
13    Officer. This exemption becomes inoperative 5 years after
14    June 25, 2019 (the effective date of Public Act 101-27)
15    this amendatory Act of the 101st General Assembly.
16        (19) Procurement expenditures necessary for the
17    Illinois Commerce Commission to hire third-party
18    facilitators pursuant to Sections 16-105.17 and Section
19    16-108.18 of the Public Utilities Act or an ombudsman
20    pursuant to Section 16-107.5 of the Public Utilities Act,
21    a facilitator pursuant to Section 16-105.17 of the Public
22    Utilities Act, or a grid auditor pursuant to Section
23    16-105.10 of the Public Utilities Act.
24    Notwithstanding any other provision of law, for contracts
25entered into on or after October 1, 2017 under an exemption
26provided in any paragraph of this subsection (b), except

 

 

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1paragraph (1), (2), or (5), each State agency shall post to the
2appropriate procurement bulletin the name of the contractor, a
3description of the supply or service provided, the total
4amount of the contract, the term of the contract, and the
5exception to the Code utilized. The chief procurement officer
6shall submit a report to the Governor and General Assembly no
7later than November 1 of each year that shall include, at a
8minimum, an annual summary of the monthly information reported
9to the chief procurement officer.
10    (c) This Code does not apply to the electric power
11procurement process provided for under Section 1-75 of the
12Illinois Power Agency Act and Section 16-111.5 of the Public
13Utilities Act.
14    (d) Except for Section 20-160 and Article 50 of this Code,
15and as expressly required by Section 9.1 of the Illinois
16Lottery Law, the provisions of this Code do not apply to the
17procurement process provided for under Section 9.1 of the
18Illinois Lottery Law.
19    (e) This Code does not apply to the process used by the
20Capital Development Board to retain a person or entity to
21assist the Capital Development Board with its duties related
22to the determination of costs of a clean coal SNG brownfield
23facility, as defined by Section 1-10 of the Illinois Power
24Agency Act, as required in subsection (h-3) of Section 9-220
25of the Public Utilities Act, including calculating the range
26of capital costs, the range of operating and maintenance

 

 

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1costs, or the sequestration costs or monitoring the
2construction of clean coal SNG brownfield facility for the
3full duration of construction.
4    (f) (Blank).
5    (g) (Blank).
6    (h) This Code does not apply to the process to procure or
7contracts entered into in accordance with Sections 11-5.2 and
811-5.3 of the Illinois Public Aid Code.
9    (i) Each chief procurement officer may access records
10necessary to review whether a contract, purchase, or other
11expenditure is or is not subject to the provisions of this
12Code, unless such records would be subject to attorney-client
13privilege.
14    (j) This Code does not apply to the process used by the
15Capital Development Board to retain an artist or work or works
16of art as required in Section 14 of the Capital Development
17Board Act.
18    (k) This Code does not apply to the process to procure
19contracts, or contracts entered into, by the State Board of
20Elections or the State Electoral Board for hearing officers
21appointed pursuant to the Election Code.
22    (l) This Code does not apply to the processes used by the
23Illinois Student Assistance Commission to procure supplies and
24services paid for from the private funds of the Illinois
25Prepaid Tuition Fund. As used in this subsection (l), "private
26funds" means funds derived from deposits paid into the

 

 

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1Illinois Prepaid Tuition Trust Fund and the earnings thereon.
2(Source: P.A. 100-43, eff. 8-9-17; 100-580, eff. 3-12-18;
3100-757, eff. 8-10-18; 100-1114, eff. 8-28-18; 101-27, eff.
46-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; revised
59-17-19.)
 
6    Section 90-37. The Business Enterprise for Minorities,
7Women, and Persons with Disabilities Act is amended by
8changing Sections 4f and 7 as follows:
 
9    (30 ILCS 575/4f)
10    (Text of Section before amendment by P.A. 101-657, Article
1140, Section 40-130)
12    (Section scheduled to be repealed on June 30, 2024)
13    Sec. 4f. Award of State contracts.
14    (1) It is hereby declared to be the public policy of the
15State of Illinois to promote and encourage each State agency
16and public institution of higher education to use businesses
17owned by minorities, women, and persons with disabilities in
18the area of goods and services, including, but not limited to,
19insurance services, investment management services,
20information technology services, accounting services,
21architectural and engineering services, and legal services.
22Furthermore, each State agency and public institution of
23higher education shall utilize such firms to the greatest
24extent feasible within the bounds of financial and fiduciary

 

 

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1prudence, and take affirmative steps to remove any barriers to
2the full participation of such firms in the procurement and
3contracting opportunities afforded.
4        (a) When a State agency or public institution of
5    higher education, other than a community college, awards a
6    contract for insurance services, for each State agency or
7    public institution of higher education, it shall be the
8    aspirational goal to use insurance brokers owned by
9    minorities, women, and persons with disabilities as
10    defined by this Act, for not less than 20% of the total
11    annual premiums or fees; provided that, contracts
12    representing at least 11% of the total annual premiums or
13    fees shall be awarded to businesses owned by minorities;
14    contracts representing at least 7% of the total annual
15    premiums or fees shall be awarded to women-owned
16    businesses; and contracts representing at least 2% of the
17    total annual premiums or fees shall be awarded to
18    businesses owned by persons with disabilities.
19        (b) When a State agency or public institution of
20    higher education, other than a community college, awards a
21    contract for investment services, for each State agency or
22    public institution of higher education, it shall be the
23    aspirational goal to use emerging investment managers
24    owned by minorities, women, and persons with disabilities
25    as defined by this Act, for not less than 20% of the total
26    funds under management; provided that, contracts

 

 

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1    representing at least 11% of the total funds under
2    management shall be awarded to businesses owned by
3    minorities; contracts representing at least 7% of the
4    total funds under management shall be awarded to
5    women-owned businesses; and contracts representing at
6    least 2% of the total funds under management shall be
7    awarded to businesses owned by persons with disabilities.
8    Furthermore, it is the aspirational goal that not less
9    than 20% of the direct asset managers of the State funds be
10    minorities, women, and persons with disabilities.
11        (c) When a State agency or public institution of
12    higher education, other than a community college, awards
13    contracts for information technology services, accounting
14    services, architectural and engineering services, and
15    legal services, for each State agency and public
16    institution of higher education, it shall be the
17    aspirational goal to use such firms owned by minorities,
18    women, and persons with disabilities as defined by this
19    Act and lawyers who are minorities, women, and persons
20    with disabilities as defined by this Act, for not less
21    than 20% of the total dollar amount of State contracts;
22    provided that, contracts representing at least 11% of the
23    total dollar amount of State contracts shall be awarded to
24    businesses owned by minorities or minority lawyers;
25    contracts representing at least 7% of the total dollar
26    amount of State contracts shall be awarded to women-owned

 

 

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1    businesses or women who are lawyers; and contracts
2    representing at least 2% of the total dollar amount of
3    State contracts shall be awarded to businesses owned by
4    persons with disabilities or persons with disabilities who
5    are lawyers.
6        (d) When a community college awards a contract for
7    insurance services, investment services, information
8    technology services, accounting services, architectural
9    and engineering services, and legal services, it shall be
10    the aspirational goal of each community college to use
11    businesses owned by minorities, women, and persons with
12    disabilities as defined in this Act for not less than 20%
13    of the total amount spent on contracts for these services
14    collectively; provided that, contracts representing at
15    least 11% of the total amount spent on contracts for these
16    services shall be awarded to businesses owned by
17    minorities; contracts representing at least 7% of the
18    total amount spent on contracts for these services shall
19    be awarded to women-owned businesses; and contracts
20    representing at least 2% of the total amount spent on
21    contracts for these services shall be awarded to
22    businesses owned by persons with disabilities. When a
23    community college awards contracts for investment
24    services, contracts awarded to investment managers who are
25    not emerging investment managers as defined in this Act
26    shall not be considered businesses owned by minorities,

 

 

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1    women, or persons with disabilities for the purposes of
2    this Section.
3        (e) When a State agency or public institution of
4    higher education issues competitive solicitations and the
5    award history for a service or supply category shows
6    awards to a class of business owners that are
7    underrepresented, the Council shall determine the reason
8    for the disparity and shall identify potential and
9    appropriate methods to minimize or eliminate the cause for
10    the disparity.
11        If any State agency or public institution of higher
12    education contract is eligible to be paid for or
13    reimbursed, in whole or in part, with federal-aid funds,
14    grants, or loans, and the provisions of this paragraph (e)
15    would result in the loss of those federal-aid funds,
16    grants, or loans, then the contract is exempt from the
17    provisions of this paragraph (e) in order to remain
18    eligible for those federal-aid funds, grants, or loans.
19    (2) As used in this Section:
20        "Accounting services" means the measurement,
21    processing and communication of financial information
22    about economic entities including, but is not limited to,
23    financial accounting, management accounting, auditing,
24    cost containment and auditing services, taxation and
25    accounting information systems.
26        "Architectural and engineering services" means

 

 

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1    professional services of an architectural or engineering
2    nature, or incidental services, that members of the
3    architectural and engineering professions, and individuals
4    in their employ, may logically or justifiably perform,
5    including studies, investigations, surveying and mapping,
6    tests, evaluations, consultations, comprehensive
7    planning, program management, conceptual designs, plans
8    and specifications, value engineering, construction phase
9    services, soils engineering, drawing reviews, preparation
10    of operating and maintenance manuals, and other related
11    services.
12        "Emerging investment manager" means an investment
13    manager or claims consultant having assets under
14    management below $10 billion or otherwise adjudicating
15    claims.
16        "Information technology services" means, but is not
17    limited to, specialized technology-oriented solutions by
18    combining the processes and functions of software,
19    hardware, networks, telecommunications, web designers,
20    cloud developing resellers, and electronics.
21        "Insurance broker" means an insurance brokerage firm,
22    claims administrator, or both, that procures, places all
23    lines of insurance, or administers claims with annual
24    premiums or fees of at least $5,000,000 but not more than
25    $10,000,000.
26        "Legal services" means work performed by a lawyer

 

 

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1    including, but not limited to, contracts in anticipation
2    of litigation, enforcement actions, or investigations.
3    (3) Each State agency and public institution of higher
4education shall adopt policies that identify its plan and
5implementation procedures for increasing the use of service
6firms owned by minorities, women, and persons with
7disabilities.
8    (4) Except as provided in subsection (5), the Council
9shall file no later than March 1 of each year an annual report
10to the Governor, the Bureau on Apprenticeship Programs and
11Clean Energy Jobs, and the General Assembly. The report filed
12with the General Assembly shall be filed as required in
13Section 3.1 of the General Assembly Organization Act. This
14report shall: (i) identify the service firms used by each
15State agency and public institution of higher education, (ii)
16identify the actions it has undertaken to increase the use of
17service firms owned by minorities, women, and persons with
18disabilities, including encouraging non-minority-owned firms
19to use other service firms owned by minorities, women, and
20persons with disabilities as subcontractors when the
21opportunities arise, (iii) state any recommendations made by
22the Council to each State agency and public institution of
23higher education to increase participation by the use of
24service firms owned by minorities, women, and persons with
25disabilities, and (iv) include the following:
26        (A) For insurance services: the names of the insurance

 

 

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1    brokers or claims consultants used, the total of risk
2    managed by each State agency and public institution of
3    higher education by insurance brokers, the total
4    commissions, fees paid, or both, the lines or insurance
5    policies placed, and the amount of premiums placed; and
6    the percentage of the risk managed by insurance brokers,
7    the percentage of total commission, fees paid, or both,
8    the lines or insurance policies placed, and the amount of
9    premiums placed with each by the insurance brokers owned
10    by minorities, women, and persons with disabilities by
11    each State agency and public institution of higher
12    education.
13        (B) For investment management services: the names of
14    the investment managers used, the total funds under
15    management of investment managers; the total commissions,
16    fees paid, or both; the total and percentage of funds
17    under management of emerging investment managers owned by
18    minorities, women, and persons with disabilities,
19    including the total and percentage of total commissions,
20    fees paid, or both by each State agency and public
21    institution of higher education.
22        (C) The names of service firms, the percentage and
23    total dollar amount paid for professional services by
24    category by each State agency and public institution of
25    higher education.
26        (D) The names of service firms, the percentage and

 

 

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1    total dollar amount paid for services by category to firms
2    owned by minorities, women, and persons with disabilities
3    by each State agency and public institution of higher
4    education.
5        (E) The total number of contracts awarded for services
6    by category and the total number of contracts awarded to
7    firms owned by minorities, women, and persons with
8    disabilities by each State agency and public institution
9    of higher education.
10    (5) For community college districts, the Business
11Enterprise Council shall only report the following information
12for each community college district: (i) the name of the
13community colleges in the district, (ii) the name and contact
14information of a person at each community college appointed to
15be the single point of contact for vendors owned by
16minorities, women, or persons with disabilities, (iii) the
17policy of the community college district concerning certified
18vendors, (iv) the certifications recognized by the community
19college district for determining whether a business is owned
20or controlled by a minority, woman, or person with a
21disability, (v) outreach efforts conducted by the community
22college district to increase the use of certified vendors,
23(vi) the total expenditures by the community college district
24in the prior fiscal year in the divisions of work specified in
25paragraphs (a), (b), and (c) of subsection (1) of this Section
26and the amount paid to certified vendors in those divisions of

 

 

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1work, and (vii) the total number of contracts entered into for
2the divisions of work specified in paragraphs (a), (b), and
3(c) of subsection (1) of this Section and the total number of
4contracts awarded to certified vendors providing these
5services to the community college district. The Business
6Enterprise Council shall not make any utilization reports
7under this Act for community college districts for Fiscal Year
82015 and Fiscal Year 2016, but shall make the report required
9by this subsection for Fiscal Year 2017 and for each fiscal
10year thereafter. The Business Enterprise Council shall report
11the information in items (i), (ii), (iii), and (iv) of this
12subsection beginning in September of 2016. The Business
13Enterprise Council may collect the data needed to make its
14report from the Illinois Community College Board.
15    (6) The status of the utilization of services shall be
16discussed at each of the regularly scheduled Business
17Enterprise Council meetings. Time shall be allotted for the
18Council to receive, review, and discuss the progress of the
19use of service firms owned by minorities, women, and persons
20with disabilities by each State agency and public institution
21of higher education; and any evidence regarding past or
22present racial, ethnic, or gender-based discrimination which
23directly impacts a State agency or public institution of
24higher education contracting with such firms. If after
25reviewing such evidence the Council finds that there is or has
26been such discrimination against a specific group, race or

 

 

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1sex, the Council shall establish sheltered markets or adjust
2existing sheltered markets tailored to address the Council's
3specific findings for the divisions of work specified in
4paragraphs (a), (b), and (c) of subsection (1) of this
5Section.
6(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;
7101-657, Article 5, Section 5-10, eff. 7-1-21 (See Section 25
8of P.A. 102-29 for effective date of P.A. 101-657, Article 5,
9Section 5-10); 102-29, eff. 6-25-21.)
 
10    (Text of Section after amendment by P.A. 101-657, Article
1140, Section 40-130)
12    (Section scheduled to be repealed on June 30, 2024)
13    Sec. 4f. Award of State contracts.
14    (1) It is hereby declared to be the public policy of the
15State of Illinois to promote and encourage each State agency
16and public institution of higher education to use businesses
17owned by minorities, women, and persons with disabilities in
18the area of goods and services, including, but not limited to,
19insurance services, investment management services,
20information technology services, accounting services,
21architectural and engineering services, and legal services.
22Furthermore, each State agency and public institution of
23higher education shall utilize such firms to the greatest
24extent feasible within the bounds of financial and fiduciary
25prudence, and take affirmative steps to remove any barriers to

 

 

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1the full participation of such firms in the procurement and
2contracting opportunities afforded.
3        (a) When a State agency or public institution of
4    higher education, other than a community college, awards a
5    contract for insurance services, for each State agency or
6    public institution of higher education, it shall be the
7    aspirational goal to use insurance brokers owned by
8    minorities, women, and persons with disabilities as
9    defined by this Act, for not less than 20% of the total
10    annual premiums or fees; provided that, contracts
11    representing at least 11% of the total annual premiums or
12    fees shall be awarded to businesses owned by minorities;
13    contracts representing at least 7% of the total annual
14    premiums or fees shall be awarded to women-owned
15    businesses; and contracts representing at least 2% of the
16    total annual premiums or fees shall be awarded to
17    businesses owned by persons with disabilities.
18        (b) When a State agency or public institution of
19    higher education, other than a community college, awards a
20    contract for investment services, for each State agency or
21    public institution of higher education, it shall be the
22    aspirational goal to use emerging investment managers
23    owned by minorities, women, and persons with disabilities
24    as defined by this Act, for not less than 20% of the total
25    funds under management; provided that, contracts
26    representing at least 11% of the total funds under

 

 

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1    management shall be awarded to businesses owned by
2    minorities; contracts representing at least 7% of the
3    total funds under management shall be awarded to
4    women-owned businesses; and contracts representing at
5    least 2% of the total funds under management shall be
6    awarded to businesses owned by persons with disabilities.
7    Furthermore, it is the aspirational goal that not less
8    than 20% of the direct asset managers of the State funds be
9    minorities, women, and persons with disabilities.
10        (c) When a State agency or public institution of
11    higher education, other than a community college, awards
12    contracts for information technology services, accounting
13    services, architectural and engineering services, and
14    legal services, for each State agency and public
15    institution of higher education, it shall be the
16    aspirational goal to use such firms owned by minorities,
17    women, and persons with disabilities as defined by this
18    Act and lawyers who are minorities, women, and persons
19    with disabilities as defined by this Act, for not less
20    than 20% of the total dollar amount of State contracts;
21    provided that, contracts representing at least 11% of the
22    total dollar amount of State contracts shall be awarded to
23    businesses owned by minorities or minority lawyers;
24    contracts representing at least 7% of the total dollar
25    amount of State contracts shall be awarded to women-owned
26    businesses or women who are lawyers; and contracts

 

 

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1    representing at least 2% of the total dollar amount of
2    State contracts shall be awarded to businesses owned by
3    persons with disabilities or persons with disabilities who
4    are lawyers.
5        (d) When a community college awards a contract for
6    insurance services, investment services, information
7    technology services, accounting services, architectural
8    and engineering services, and legal services, it shall be
9    the aspirational goal of each community college to use
10    businesses owned by minorities, women, and persons with
11    disabilities as defined in this Act for not less than 20%
12    of the total amount spent on contracts for these services
13    collectively; provided that, contracts representing at
14    least 11% of the total amount spent on contracts for these
15    services shall be awarded to businesses owned by
16    minorities; contracts representing at least 7% of the
17    total amount spent on contracts for these services shall
18    be awarded to women-owned businesses; and contracts
19    representing at least 2% of the total amount spent on
20    contracts for these services shall be awarded to
21    businesses owned by persons with disabilities. When a
22    community college awards contracts for investment
23    services, contracts awarded to investment managers who are
24    not emerging investment managers as defined in this Act
25    shall not be considered businesses owned by minorities,
26    women, or persons with disabilities for the purposes of

 

 

SB2408 Enrolled- 538 -LRB102 11366 BMS 16699 b

1    this Section.
2    (2) As used in this Section:
3        "Accounting services" means the measurement,
4    processing and communication of financial information
5    about economic entities including, but is not limited to,
6    financial accounting, management accounting, auditing,
7    cost containment and auditing services, taxation and
8    accounting information systems.
9        "Architectural and engineering services" means
10    professional services of an architectural or engineering
11    nature, or incidental services, that members of the
12    architectural and engineering professions, and individuals
13    in their employ, may logically or justifiably perform,
14    including studies, investigations, surveying and mapping,
15    tests, evaluations, consultations, comprehensive
16    planning, program management, conceptual designs, plans
17    and specifications, value engineering, construction phase
18    services, soils engineering, drawing reviews, preparation
19    of operating and maintenance manuals, and other related
20    services.
21        "Emerging investment manager" means an investment
22    manager or claims consultant having assets under
23    management below $10 billion or otherwise adjudicating
24    claims.
25        "Information technology services" means, but is not
26    limited to, specialized technology-oriented solutions by

 

 

SB2408 Enrolled- 539 -LRB102 11366 BMS 16699 b

1    combining the processes and functions of software,
2    hardware, networks, telecommunications, web designers,
3    cloud developing resellers, and electronics.
4        "Insurance broker" means an insurance brokerage firm,
5    claims administrator, or both, that procures, places all
6    lines of insurance, or administers claims with annual
7    premiums or fees of at least $5,000,000 but not more than
8    $10,000,000.
9        "Legal services" means work performed by a lawyer
10    including, but not limited to, contracts in anticipation
11    of litigation, enforcement actions, or investigations.
12    (3) Each State agency and public institution of higher
13education shall adopt policies that identify its plan and
14implementation procedures for increasing the use of service
15firms owned by minorities, women, and persons with
16disabilities. All plan and implementation procedures for
17increasing the use of service firms owned by minorities,
18women, and persons with disabilities must be submitted to and
19approved by the Commission on Equity and Inclusion on an
20annual basis.
21    (4) Except as provided in subsection (5), the Council
22shall file no later than March 1 of each year an annual report
23to the Governor, the Bureau on Apprenticeship Programs and
24Clean Energy Jobs, and the General Assembly. The report filed
25with the General Assembly shall be filed as required in
26Section 3.1 of the General Assembly Organization Act. This

 

 

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1report shall: (i) identify the service firms used by each
2State agency and public institution of higher education, (ii)
3identify the actions it has undertaken to increase the use of
4service firms owned by minorities, women, and persons with
5disabilities, including encouraging non-minority-owned firms
6to use other service firms owned by minorities, women, and
7persons with disabilities as subcontractors when the
8opportunities arise, (iii) state any recommendations made by
9the Council to each State agency and public institution of
10higher education to increase participation by the use of
11service firms owned by minorities, women, and persons with
12disabilities, and (iv) include the following:
13        (A) For insurance services: the names of the insurance
14    brokers or claims consultants used, the total of risk
15    managed by each State agency and public institution of
16    higher education by insurance brokers, the total
17    commissions, fees paid, or both, the lines or insurance
18    policies placed, and the amount of premiums placed; and
19    the percentage of the risk managed by insurance brokers,
20    the percentage of total commission, fees paid, or both,
21    the lines or insurance policies placed, and the amount of
22    premiums placed with each by the insurance brokers owned
23    by minorities, women, and persons with disabilities by
24    each State agency and public institution of higher
25    education.
26        (B) For investment management services: the names of

 

 

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1    the investment managers used, the total funds under
2    management of investment managers; the total commissions,
3    fees paid, or both; the total and percentage of funds
4    under management of emerging investment managers owned by
5    minorities, women, and persons with disabilities,
6    including the total and percentage of total commissions,
7    fees paid, or both by each State agency and public
8    institution of higher education.
9        (C) The names of service firms, the percentage and
10    total dollar amount paid for professional services by
11    category by each State agency and public institution of
12    higher education.
13        (D) The names of service firms, the percentage and
14    total dollar amount paid for services by category to firms
15    owned by minorities, women, and persons with disabilities
16    by each State agency and public institution of higher
17    education.
18        (E) The total number of contracts awarded for services
19    by category and the total number of contracts awarded to
20    firms owned by minorities, women, and persons with
21    disabilities by each State agency and public institution
22    of higher education.
23    (5) For community college districts, the Business
24Enterprise Council shall only report the following information
25for each community college district: (i) the name of the
26community colleges in the district, (ii) the name and contact

 

 

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1information of a person at each community college appointed to
2be the single point of contact for vendors owned by
3minorities, women, or persons with disabilities, (iii) the
4policy of the community college district concerning certified
5vendors, (iv) the certifications recognized by the community
6college district for determining whether a business is owned
7or controlled by a minority, woman, or person with a
8disability, (v) outreach efforts conducted by the community
9college district to increase the use of certified vendors,
10(vi) the total expenditures by the community college district
11in the prior fiscal year in the divisions of work specified in
12paragraphs (a), (b), and (c) of subsection (1) of this Section
13and the amount paid to certified vendors in those divisions of
14work, and (vii) the total number of contracts entered into for
15the divisions of work specified in paragraphs (a), (b), and
16(c) of subsection (1) of this Section and the total number of
17contracts awarded to certified vendors providing these
18services to the community college district. The Business
19Enterprise Council shall not make any utilization reports
20under this Act for community college districts for Fiscal Year
212015 and Fiscal Year 2016, but shall make the report required
22by this subsection for Fiscal Year 2017 and for each fiscal
23year thereafter. The Business Enterprise Council shall report
24the information in items (i), (ii), (iii), and (iv) of this
25subsection beginning in September of 2016. The Business
26Enterprise Council may collect the data needed to make its

 

 

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1report from the Illinois Community College Board.
2    (6) The status of the utilization of services shall be
3discussed at each of the regularly scheduled Business
4Enterprise Council meetings. Time shall be allotted for the
5Council to receive, review, and discuss the progress of the
6use of service firms owned by minorities, women, and persons
7with disabilities by each State agency and public institution
8of higher education; and any evidence regarding past or
9present racial, ethnic, or gender-based discrimination which
10directly impacts a State agency or public institution of
11higher education contracting with such firms. If after
12reviewing such evidence the Council finds that there is or has
13been such discrimination against a specific group, race or
14sex, the Council shall establish sheltered markets or adjust
15existing sheltered markets tailored to address the Council's
16specific findings for the divisions of work specified in
17paragraphs (a), (b), and (c) of subsection (1) of this
18Section.
19(Source: P.A. 101-170, eff. 1-1-20; 101-657, Article 5,
20Section 5-10, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
21effective date of P.A. 101-657, Article 5, Section 5-10);
22101-657, Article 40, Section 40-130, eff. 1-1-22; 102-29, eff.
236-25-21.)
 
24    (30 ILCS 575/7)  (from Ch. 127, par. 132.607)
25    (Text of Section before amendment by P.A. 101-657)

 

 

SB2408 Enrolled- 544 -LRB102 11366 BMS 16699 b

1    (Section scheduled to be repealed on June 30, 2024)
2    Sec. 7. Exemptions; waivers; publication of data.
3    (1) Individual contract exemptions. The Council, at the
4written request of the affected agency, public institution of
5higher education, or recipient of a grant or loan of State
6funds of $250,000 or more complying with Section 45 of the
7State Finance Act, may permit an individual contract or
8contract package, (related contracts being bid or awarded
9simultaneously for the same project or improvements) be made
10wholly or partially exempt from State contracting goals for
11businesses owned by minorities, women, and persons with
12disabilities prior to the advertisement for bids or
13solicitation of proposals whenever there has been a
14determination, reduced to writing and based on the best
15information available at the time of the determination, that
16there is an insufficient number of businesses owned by
17minorities, women, and persons with disabilities to ensure
18adequate competition and an expectation of reasonable prices
19on bids or proposals solicited for the individual contract or
20contract package in question. Any such exemptions shall be
21given by the Council to the Bureau on Apprenticeship Programs
22and Clean Energy Jobs.
23        (a) Written request for contract exemption. A written
24    request for an individual contract exemption must include,
25    but is not limited to, the following:
26            (i) a list of eligible businesses owned by

 

 

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1        minorities, women, and persons with disabilities;
2            (ii) a clear demonstration that the number of
3        eligible businesses identified in subparagraph (i)
4        above is insufficient to ensure adequate competition;
5            (iii) the difference in cost between the contract
6        proposals being offered by businesses owned by
7        minorities, women, and persons with disabilities and
8        the agency or public institution of higher education's
9        expectations of reasonable prices on bids or proposals
10        within that class; and
11            (iv) a list of eligible businesses owned by
12        minorities, women, and persons with disabilities that
13        the contractor has used in the current and prior
14        fiscal years.
15        (b) Determination. The Council's determination
16    concerning an individual contract exemption must consider,
17    at a minimum, the following:
18            (i) the justification for the requested exemption,
19        including whether diligent efforts were undertaken to
20        identify and solicit eligible businesses owned by
21        minorities, women, and persons with disabilities;
22            (ii) the total number of exemptions granted to the
23        affected agency, public institution of higher
24        education, or recipient of a grant or loan of State
25        funds of $250,000 or more complying with Section 45 of
26        the State Finance Act that have been granted by the

 

 

SB2408 Enrolled- 546 -LRB102 11366 BMS 16699 b

1        Council in the current and prior fiscal years; and
2            (iii) the percentage of contracts awarded by the
3        agency or public institution of higher education to
4        eligible businesses owned by minorities, women, and
5        persons with disabilities in the current and prior
6        fiscal years.
7    (2) Class exemptions.
8        (a) Creation. The Council, at the written request of
9    the affected agency or public institution of higher
10    education, may permit an entire class of contracts be made
11    exempt from State contracting goals for businesses owned
12    by minorities, women, and persons with disabilities
13    whenever there has been a determination, reduced to
14    writing and based on the best information available at the
15    time of the determination, that there is an insufficient
16    number of qualified businesses owned by minorities, women,
17    and persons with disabilities to ensure adequate
18    competition and an expectation of reasonable prices on
19    bids or proposals within that class. Any such exemption
20    shall be given by the Council to the Bureau on
21    Apprenticeship Programs and Clean Energy Jobs.
22        (a-1) Written request for class exemption. A written
23    request for a class exemption must include, but is not
24    limited to, the following:
25            (i) a list of eligible businesses owned by
26        minorities, women, and persons with disabilities;

 

 

SB2408 Enrolled- 547 -LRB102 11366 BMS 16699 b

1            (ii) a clear demonstration that the number of
2        eligible businesses identified in subparagraph (i)
3        above is insufficient to ensure adequate competition;
4            (iii) the difference in cost between the contract
5        proposals being offered by eligible businesses owned
6        by minorities, women, and persons with disabilities
7        and the agency or public institution of higher
8        education's expectations of reasonable prices on bids
9        or proposals within that class; and
10            (iv) the number of class exemptions the affected
11        agency or public institution of higher education
12        requested in the current and prior fiscal years.
13        (a-2) Determination. The Council's determination
14    concerning class exemptions must consider, at a minimum,
15    the following:
16            (i) the justification for the requested exemption,
17        including whether diligent efforts were undertaken to
18        identify and solicit eligible businesses owned by
19        minorities, women, and persons with disabilities;
20            (ii) the total number of class exemptions granted
21        to the requesting agency or public institution of
22        higher education that have been granted by the Council
23        in the current and prior fiscal years; and
24            (iii) the percentage of contracts awarded by the
25        agency or public institution of higher education to
26        eligible businesses owned by minorities, women, and

 

 

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1        persons with disabilities the current and prior fiscal
2        years.
3        (b) Limitation. Any such class exemption shall not be
4    permitted for a period of more than one year at a time.
5    (3) Waivers. Where a particular contract requires a
6contractor to meet a goal established pursuant to this Act,
7the contractor shall have the right to request a waiver from
8such requirements. The Council shall grant the waiver where
9the contractor demonstrates that there has been made a good
10faith effort to comply with the goals for participation by
11businesses owned by minorities, women, and persons with
12disabilities. Any such waiver shall also be transmitted in
13writing to the Bureau on Apprenticeship Programs and Clean
14Energy Jobs.
15        (a) Request for waiver. A contractor's request for a
16    waiver under this subsection (3) must include, but is not
17    limited to, the following, if available:
18            (i) a list of eligible businesses owned by
19        minorities, women, and persons with disabilities that
20        pertain to the class of contracts in the requested
21        waiver;
22            (ii) a clear demonstration that the number of
23        eligible businesses identified in subparagraph (i)
24        above is insufficient to ensure competition;
25            (iii) the difference in cost between the contract
26        proposals being offered by businesses owned by

 

 

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1        minorities, women, and persons with disabilities and
2        the agency or the public institution of higher
3        education's expectations of reasonable prices on bids
4        or proposals within that class; and
5            (iv) a list of businesses owned by minorities,
6        women, and persons with disabilities that the
7        contractor has used in the current and prior fiscal
8        years.
9        (b) Determination. The Council's determination
10    concerning waivers must include following:
11            (i) the justification for the requested waiver,
12        including whether the requesting contractor made a
13        good faith effort to identify and solicit eligible
14        businesses owned by minorities, women, and persons
15        with disabilities;
16            (ii) the total number of waivers the contractor
17        has been granted by the Council in the current and
18        prior fiscal years;
19            (iii) the percentage of contracts awarded by the
20        agency or public institution of higher education to
21        eligible businesses owned by minorities, women, and
22        persons with disabilities in the current and prior
23        fiscal years; and
24            (iv) the contractor's use of businesses owned by
25        minorities, women, and persons with disabilities in
26        the current and prior fiscal years.

 

 

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1    (3.5) (Blank).
2    (4) Conflict with other laws. In the event that any State
3contract, which otherwise would be subject to the provisions
4of this Act, is or becomes subject to federal laws or
5regulations which conflict with the provisions of this Act or
6actions of the State taken pursuant hereto, the provisions of
7the federal laws or regulations shall apply and the contract
8shall be interpreted and enforced accordingly.
9    (5) Each chief procurement officer, as defined in the
10Illinois Procurement Code, shall maintain on his or her
11official Internet website a database of the following: (i)
12waivers granted under this Section with respect to contracts
13under his or her jurisdiction; (ii) a State agency or public
14institution of higher education's written request for an
15exemption of an individual contract or an entire class of
16contracts; and (iii) the Council's written determination
17granting or denying a request for an exemption of an
18individual contract or an entire class of contracts. The
19database, which shall be updated periodically as necessary,
20shall be searchable by contractor name and by contracting
21State agency.
22    (6) Each chief procurement officer, as defined by the
23Illinois Procurement Code, shall maintain on its website a
24list of all firms that have been prohibited from bidding,
25offering, or entering into a contract with the State of
26Illinois as a result of violations of this Act.

 

 

SB2408 Enrolled- 551 -LRB102 11366 BMS 16699 b

1    Each public notice required by law of the award of a State
2contract shall include for each bid or offer submitted for
3that contract the following: (i) the bidder's or offeror's
4name, (ii) the bid amount, (iii) the name or names of the
5certified firms identified in the bidder's or offeror's
6submitted utilization plan, and (iv) the bid's amount and
7percentage of the contract awarded to businesses owned by
8minorities, women, and persons with disabilities identified in
9the utilization plan.
10(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20;
11101-601, eff. 1-1-20; 102-29, eff. 6-25-21.)
 
12    (Text of Section after amendment by P.A. 101-657)
13    (Section scheduled to be repealed on June 30, 2024)
14    Sec. 7. Exemptions; waivers; publication of data.
15    (1) Individual contract exemptions. The Council, at the
16written request of the affected agency, public institution of
17higher education, or recipient of a grant or loan of State
18funds of $250,000 or more complying with Section 45 of the
19State Finance Act, may permit an individual contract or
20contract package, (related contracts being bid or awarded
21simultaneously for the same project or improvements) be made
22wholly or partially exempt from State contracting goals for
23businesses owned by minorities, women, and persons with
24disabilities prior to the advertisement for bids or
25solicitation of proposals whenever there has been a

 

 

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1determination, reduced to writing and based on the best
2information available at the time of the determination, that
3there is an insufficient number of businesses owned by
4minorities, women, and persons with disabilities to ensure
5adequate competition and an expectation of reasonable prices
6on bids or proposals solicited for the individual contract or
7contract package in question. Any such exemptions shall be
8given by the Council to the Bureau on Apprenticeship Programs
9and Clean Energy Jobs.
10        (a) Written request for contract exemption. A written
11    request for an individual contract exemption must include,
12    but is not limited to, the following:
13            (i) a list of eligible businesses owned by
14        minorities, women, and persons with disabilities;
15            (ii) a clear demonstration that the number of
16        eligible businesses identified in subparagraph (i)
17        above is insufficient to ensure adequate competition;
18            (iii) the difference in cost between the contract
19        proposals being offered by businesses owned by
20        minorities, women, and persons with disabilities and
21        the agency or public institution of higher education's
22        expectations of reasonable prices on bids or proposals
23        within that class; and
24            (iv) a list of eligible businesses owned by
25        minorities, women, and persons with disabilities that
26        the contractor has used in the current and prior

 

 

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1        fiscal years.
2        (b) Determination. The Council's determination
3    concerning an individual contract exemption must consider,
4    at a minimum, the following:
5            (i) the justification for the requested exemption,
6        including whether diligent efforts were undertaken to
7        identify and solicit eligible businesses owned by
8        minorities, women, and persons with disabilities;
9            (ii) the total number of exemptions granted to the
10        affected agency, public institution of higher
11        education, or recipient of a grant or loan of State
12        funds of $250,000 or more complying with Section 45 of
13        the State Finance Act that have been granted by the
14        Council in the current and prior fiscal years; and
15            (iii) the percentage of contracts awarded by the
16        agency or public institution of higher education to
17        eligible businesses owned by minorities, women, and
18        persons with disabilities in the current and prior
19        fiscal years.
20    (2) Class exemptions.
21        (a) Creation. The Council, at the written request of
22    the affected agency or public institution of higher
23    education, may permit an entire class of contracts be made
24    exempt from State contracting goals for businesses owned
25    by minorities, women, and persons with disabilities
26    whenever there has been a determination, reduced to

 

 

SB2408 Enrolled- 554 -LRB102 11366 BMS 16699 b

1    writing and based on the best information available at the
2    time of the determination, that there is an insufficient
3    number of qualified businesses owned by minorities, women,
4    and persons with disabilities to ensure adequate
5    competition and an expectation of reasonable prices on
6    bids or proposals within that class. Any such exemption
7    shall be given by the Council to the Bureau on
8    Apprenticeship Programs and Clean Energy Jobs.
9        (a-1) Written request for class exemption. A written
10    request for a class exemption must include, but is not
11    limited to, the following:
12            (i) a list of eligible businesses owned by
13        minorities, women, and persons with disabilities;
14            (ii) a clear demonstration that the number of
15        eligible businesses identified in subparagraph (i)
16        above is insufficient to ensure adequate competition;
17            (iii) the difference in cost between the contract
18        proposals being offered by eligible businesses owned
19        by minorities, women, and persons with disabilities
20        and the agency or public institution of higher
21        education's expectations of reasonable prices on bids
22        or proposals within that class; and
23            (iv) the number of class exemptions the affected
24        agency or public institution of higher education
25        requested in the current and prior fiscal years.
26        (a-2) Determination. The Council's determination

 

 

SB2408 Enrolled- 555 -LRB102 11366 BMS 16699 b

1    concerning class exemptions must consider, at a minimum,
2    the following:
3            (i) the justification for the requested exemption,
4        including whether diligent efforts were undertaken to
5        identify and solicit eligible businesses owned by
6        minorities, women, and persons with disabilities;
7            (ii) the total number of class exemptions granted
8        to the requesting agency or public institution of
9        higher education that have been granted by the Council
10        in the current and prior fiscal years; and
11            (iii) the percentage of contracts awarded by the
12        agency or public institution of higher education to
13        eligible businesses owned by minorities, women, and
14        persons with disabilities the current and prior fiscal
15        years.
16        (b) Limitation. Any such class exemption shall not be
17    permitted for a period of more than one year at a time.
18    (3) Waivers. Where a particular contract requires a
19contractor to meet a goal established pursuant to this Act,
20the contractor shall have the right to request a waiver from
21such requirements prior to the contract award. The Council
22shall grant the waiver when the contractor demonstrates that
23there has been made a good faith effort to comply with the
24goals for participation by businesses owned by minorities,
25women, and persons with disabilities. Any such waiver shall
26also be transmitted in writing to the Bureau on Apprenticeship

 

 

SB2408 Enrolled- 556 -LRB102 11366 BMS 16699 b

1Programs and Clean Energy Jobs.
2        (a) Request for waiver. A contractor's request for a
3    waiver under this subsection (3) must include, but is not
4    limited to, the following, if available:
5            (i) a list of eligible businesses owned by
6        minorities, women, and persons with disabilities that
7        pertain to the scope of work of the contract. Eligible
8        businesses are only eligible if the business is
9        certified for the products or work advertised in the
10        solicitation;
11            (ii) (blank);
12            (iia) a clear demonstration that the contractor
13        selected portions of the work to be performed by
14        eligible businesses owned by minorities, women, and
15        persons with disabilities, solicited through all
16        reasonable and available means eligible businesses,
17        and negotiated in good faith with interested eligible
18        businesses;
19            (iib) documentation demonstrating that businesses
20        owned by minorities, women, and persons with
21        disabilities are not rejected as being unqualified
22        without sound reasons based on a thorough
23        investigation of their capabilities;
24            (iii) documentation demonstrating that the
25        contract proposals being offered by businesses owned
26        by minorities, women, and persons with disabilities

 

 

SB2408 Enrolled- 557 -LRB102 11366 BMS 16699 b

1        are excessive or unreasonable; and
2            (iv) a list of businesses owned by minorities,
3        women, and persons with disabilities that the
4        contractor has used in the current and prior fiscal
5        years.
6        (b) Determination. The Council's determination
7    concerning waivers must include following:
8            (i) the justification for the requested waiver,
9        including whether the requesting contractor made a
10        good faith effort to identify and solicit eligible
11        businesses owned by minorities, women, and persons
12        with disabilities;
13            (ii) the total number of waivers the contractor
14        has been granted by the Council in the current and
15        prior fiscal years;
16            (iii) (blank); and
17            (iv) the contractor's use of businesses owned by
18        minorities, women, and persons with disabilities in
19        the current and prior fiscal years.
20    (3.5) (Blank).
21    (4) Conflict with other laws. In the event that any State
22contract, which otherwise would be subject to the provisions
23of this Act, is or becomes subject to federal laws or
24regulations which conflict with the provisions of this Act or
25actions of the State taken pursuant hereto, the provisions of
26the federal laws or regulations shall apply and the contract

 

 

SB2408 Enrolled- 558 -LRB102 11366 BMS 16699 b

1shall be interpreted and enforced accordingly.
2    (5) Each chief procurement officer, as defined in the
3Illinois Procurement Code, shall maintain on his or her
4official Internet website a database of the following: (i)
5waivers granted under this Section with respect to contracts
6under his or her jurisdiction; (ii) a State agency or public
7institution of higher education's written request for an
8exemption of an individual contract or an entire class of
9contracts; and (iii) the Council's written determination
10granting or denying a request for an exemption of an
11individual contract or an entire class of contracts. The
12database, which shall be updated periodically as necessary,
13shall be searchable by contractor name and by contracting
14State agency.
15    (6) Each chief procurement officer, as defined by the
16Illinois Procurement Code, shall maintain on its website a
17list of all firms that have been prohibited from bidding,
18offering, or entering into a contract with the State of
19Illinois as a result of violations of this Act.
20    Each public notice required by law of the award of a State
21contract shall include for each bid or offer submitted for
22that contract the following: (i) the bidder's or offeror's
23name, (ii) the bid amount, (iii) the name or names of the
24certified firms identified in the bidder's or offeror's
25submitted utilization plan, and (iv) the bid's amount and
26percentage of the contract awarded to businesses owned by

 

 

SB2408 Enrolled- 559 -LRB102 11366 BMS 16699 b

1minorities, women, and persons with disabilities identified in
2the utilization plan.
3(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20;
4101-657, eff. 1-1-22; 102-29, eff. 6-25-21.)
 
5    Section 90-39. The Property Tax Code is amended by
6changing Sections 1-130, 10-5, and 10-610 as follows:
 
7    (35 ILCS 200/1-130)
8    Sec. 1-130. Property; real property; real estate; land;
9tract; lot.
10    (a) The land itself, with all things contained therein,
11and also all buildings, structures and improvements, and other
12permanent fixtures thereon, including all oil, gas, coal, and
13other minerals in the land and the right to remove oil, gas and
14other minerals, excluding coal, from the land, and all rights
15and privileges belonging or pertaining thereto, except where
16otherwise specified by this Code. Not included therein are
17low-income housing tax credits authorized by Section 42 of the
18Internal Revenue Code, 26 U.S.C. 42.
19    (b) Notwithstanding any other provision of law, mobile
20homes and manufactured homes that (i) are located outside of
21mobile home parks and (ii) are taxed under the Mobile Home
22Local Services Tax Act on the effective date of this
23amendatory Act of the 96th General Assembly shall continue to
24be taxed under the Mobile Home Local Services Tax Act and shall

 

 

SB2408 Enrolled- 560 -LRB102 11366 BMS 16699 b

1not be assessed and taxed as real property until the home is
2sold or transferred or until the home is relocated to a
3different parcel of land outside of a mobile home park. If a
4mobile home or manufactured home described in this subsection
5(b) is sold, transferred, or relocated to a different parcel
6of land outside of a mobile home park, then the home shall be
7assessed and taxed as real property whether or not that mobile
8home or manufactured home is affixed to a permanent
9foundation, as defined in Section 5-5 of the Conveyance and
10Encumbrance of Manufactured Homes as Real Property and
11Severance Act, or installed on a permanent foundation, and
12whether or not such mobile home or manufactured home is real
13property as defined in Section 5-35 of the Conveyance and
14Encumbrance of Manufactured Homes as Real Property and
15Severance Act. Mobile homes and manufactured homes that are
16located outside of mobile home parks and assessed and taxed as
17real property on the effective date of this amendatory Act of
18the 96th General Assembly shall continue to be assessed and
19taxed as real property whether or not those mobile homes or
20manufactured homes are affixed to a permanent foundation as
21defined in the Conveyance and Encumbrance of Manufactured
22Homes as Real Property and Severance Act or installed on
23permanent foundations and whether or not those mobile homes or
24manufactured homes are real property as defined in the
25Conveyance and Encumbrance of Manufactured Homes as Real
26Property and Severance Act. If a mobile or manufactured home

 

 

SB2408 Enrolled- 561 -LRB102 11366 BMS 16699 b

1that is located outside of a mobile home park is relocated to a
2mobile home park, it must be considered chattel and must be
3taxed according to the Mobile Home Local Services Tax Act. The
4owner of a mobile home or manufactured home that is located
5outside of a mobile home park may file a request with the chief
6county assessment officer that the home be taxed as real
7property.
8    (c) Mobile homes and manufactured homes that are located
9in mobile home parks must be taxed according to the Mobile Home
10Local Services Tax Act.
11    (d) If the provisions of this Section conflict with the
12Illinois Manufactured Housing and Mobile Home Safety Act, the
13Mobile Home Local Services Tax Act, the Mobile Home Park Act,
14or any other provision of law with respect to the taxation of
15mobile homes or manufactured homes located outside of mobile
16home parks, the provisions of this Section shall control.
17    (e) Spent fuel pools and dry cask storage systems in which
18nuclear fuel is stored and is pending further or final
19disposal from a nuclear power plant that was decommissioned
20before January 1, 2021 shall be considered real property and
21be assessable. The chief county assessment officer shall
22assess such property based on a national evaluation of the
23effective value per pound of spent nuclear fuel, calculated by
24examining assessments or PILOT agreements and documented
25pounds of spent nuclear fuel, at nuclear power plants where
26such property is similarly considered real property.

 

 

SB2408 Enrolled- 562 -LRB102 11366 BMS 16699 b

1(Source: P.A. 98-749, eff. 7-16-14.)
 
2    (35 ILCS 200/10-5)
3    Sec. 10-5. Solar energy systems; definitions. It is the
4policy of this State that the use of solar energy systems
5should be encouraged because they conserve nonrenewable
6resources, reduce pollution and promote the health and
7well-being of the people of this State, and should be valued in
8relation to these benefits.
9    (a) "Solar energy" means radiant energy received from the
10sun at wave lengths suitable for heat transfer, photosynthetic
11use, or photovoltaic use.
12    (b) "Solar collector" means
13        (1) An assembly, structure, or design, including
14    passive elements, used for gathering, concentrating, or
15    absorbing direct and indirect solar energy, specially
16    designed for holding a substantial amount of useful
17    thermal energy and to transfer that energy to a gas,
18    solid, or liquid or to use that energy directly; or
19        (2) A mechanism that absorbs solar energy and converts
20    it into electricity; or
21        (3) A mechanism or process used for gathering solar
22    energy through wind or thermal gradients; or
23        (4) A component used to transfer thermal energy to a
24    gas, solid, or liquid, or to convert it into electricity.
25    (c) "Solar storage mechanism" means equipment or elements

 

 

SB2408 Enrolled- 563 -LRB102 11366 BMS 16699 b

1(such as piping and transfer mechanisms, containers, heat
2exchangers, or controls thereof, and gases, solids, liquids,
3or combinations thereof) that are utilized for storing solar
4energy, gathered by a solar collector, for subsequent use.
5    (d) "Solar energy system" means
6        (1)(A) A complete assembly, structure, or design of
7    solar collector, or a solar storage mechanism, which uses
8    solar energy for generating electricity that is primarily
9    consumed on the property on which the solar energy system
10    resides, or for heating or cooling gases, solids, liquids,
11    or other materials for the primary benefit of the property
12    on which the solar energy system resides;
13        (B) The design, materials, or elements of a system and
14    its maintenance, operation, and labor components, and the
15    necessary components, if any, of supplemental conventional
16    energy systems designed or constructed to interface with a
17    solar energy system; and
18        (C) Any legal, financial, or institutional orders,
19    certificates, or mechanisms, including easements, leases,
20    and agreements, required to ensure continued access to
21    solar energy, its source, or its use in a solar energy
22    system, and including monitoring and educational elements
23    of a demonstration project; or .
24        (D) Photovoltaic electricity generation systems
25    subject to power purchase agreements or leases for solar
26    energy between a third-party owner, an operator, or both,

 

 

SB2408 Enrolled- 564 -LRB102 11366 BMS 16699 b

1    and an end user of electricity, where such systems are
2    located on the end user of electricity's side of the
3    electric meter and which primarily are used to offset the
4    electricity load of the end user behind whose electric
5    meter the system is connected. A system primarily is used
6    to offset the electricity load of the end user of
7    electricity if the system is estimated to produce 110% or
8    fewer kilowatt-hours of electricity than consumed by the
9    end user of electricity at such meter in the last 12 full
10    months prior to the system being placed in service.
11        (2) "Solar energy system" does not include:
12            (A) Distribution equipment that is equally usable
13        in a conventional energy system except for those
14        components of the equipment that are necessary for
15        meeting the requirements of efficient solar energy
16        utilization;
17            (B) Components of a solar energy system that serve
18        structural, insulating, protective, shading,
19        aesthetic, or other non-solar energy utilization
20        purposes, as defined in the regulations of the
21        Department of Commerce and Economic Opportunity; or
22        and
23            (C) A commercial solar energy system, as defined
24        by this Code, in counties with fewer than 3,000,000
25        inhabitants.
26        (3) The solar energy system shall conform to the

 

 

SB2408 Enrolled- 565 -LRB102 11366 BMS 16699 b

1    standards for those systems established by regulation of
2    the Department of Commerce and Economic Opportunity.
3(Source: P.A. 100-781, eff. 8-10-18.)
 
4    (35 ILCS 200/10-610)
5    Sec. 10-610. Applicability.
6    (a) The provisions of this Division apply for assessment
7years 2007 through 2035 2021.
8    (b) The provisions of this Division do not apply to wind
9energy devices that are owned by any person or entity that is
10otherwise exempt from taxation under the Property Tax Code.
11(Source: P.A. 99-825, eff. 8-16-16.)
 
12    Section 90-43. The School Code is amended by changing
13Section 10-22.11 as follows:
 
14    (105 ILCS 5/10-22.11)  (from Ch. 122, par. 10-22.11)
15    Sec. 10-22.11. Lease of school property.
16    (a) To lease school property to another school district,
17municipality or body politic and corporate for a term of not to
18exceed 25 years, except as otherwise provided in this Section,
19and upon such terms and conditions as may be agreed if in the
20opinion of the school board use of such property will not be
21needed by the district during the term of such lease;
22provided, the school board shall not make or renew any lease
23for a term longer than 10 years, nor alter the terms of any

 

 

SB2408 Enrolled- 566 -LRB102 11366 BMS 16699 b

1lease whose unexpired term may exceed 10 years without the
2vote of 2/3 of the full membership of the board.
3    (b) Whenever the school board considers such action
4advisable and in the best interests of the school district, to
5lease vacant school property for a period not exceeding 51
6years to a private not for profit school organization for use
7in the care of persons with a mental disability who are
8trainable and educable in the district or in the education of
9the gifted children in the district. Before leasing such
10property to a private not for profit school organization, the
11school board must adopt a resolution for the leasing of such
12property, fixing the period and price therefor, and order
13submitted to referendum at an election to be held in the
14district as provided in the general election law, the question
15of whether the lease should be entered into. Thereupon, the
16secretary shall certify to the proper election authorities the
17proposition for submission in accordance with the general
18election law. If the majority of the voters voting upon the
19proposition vote in favor of the leasing, the school board may
20proceed with the leasing. The proposition shall be in
21substantially the following form:
22-------------------------------------------------------------
23    Shall School District No. ..... of
24..... County, Illinois lease to            YES
25..... (here name and identify the
26lessee) the following described vacant  ---------------------

 

 

SB2408 Enrolled- 567 -LRB102 11366 BMS 16699 b

1school property (here describe the
2property) for a term of ..... years        NO
3for the sum of ..... Dollars?
4-------------------------------------------------------------
5    This paragraph (b) shall not be construed in such a manner
6as to relieve the responsibility of the Board of Education as
7set out in Article 14 of the School Code.
8    (c) To lease school buildings and land to suitable lessees
9for educational purposes or for any other purpose which serves
10the interests of the community, for a term not to exceed 25
11years and upon such terms and conditions as may be agreed upon
12by the parties, when such buildings and land are declared by
13the board to be unnecessary or unsuitable or inconvenient for
14a school or the uses of the district during the term of the
15lease and when, in the opinion of the board, the best interests
16of the residents of the school district will be enhanced by
17entering into such a lease. Such leases shall include
18provisions for adequate insurance for both liability and
19property damage or loss, and reasonable charges for
20maintenance and depreciation of such buildings and land.
21    (d) Notwithstanding any other provision to the contrary, a
22lease for vacant school property may exceed 25 years for
23renewable energy resources, as defined in Section 1-10 of the
24Illinois Power Agency Act.
25(Source: P.A. 99-143, eff. 7-27-15.)
 

 

 

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1    Section 90-50. The Public Utilities Act is amended by
2changing Sections 5-117, 8-103B, 8-406, 9-241, 16-107.5,
316-107.6, 16-108, 16-111.5, and 16-127 and by adding Sections
44-604, 4-604.5, 4-605, 8-201.7, 8-201.8, 8-201.9, 8-201.10,
58-218, 8-402.2, 8-512, 9-228, 9-229, 16-105.5, 16-105.6,
616-105.7, 16-105.10, 16-105.17, 16-108.18, 16-108.19,
716-108.20, 16-108.21, 16-108.25, 16-108.30, 16-111.10, 16-135,
8and 17-900 as follows:
 
9    (220 ILCS 5/4-604 new)
10    Sec. 4-604. Electric and gas public utilities ethical
11conduct and transparency.
12    (a) It is the policy of this State that, as regulated,
13monopoly entities providing essential services, public
14utilities must adhere to the highest standards of ethical
15conduct. It is in the public interest to ensure ethical public
16utility conduct of the highest standards. It is therefore
17necessary for the public interest, safety, and welfare of the
18State and of public utility customers to develop rigorous
19ethical standards and scrutinize and limit public utility
20actions, expenditures, and contracting. It is also necessary
21to provide increased transparency to ensure ethical public
22utility conduct.
23    (b) The standards set forth in this Section and the
24Illinois Administrative Code rules implementing this Section
25shall apply, to the extent practicable, to electric and gas

 

 

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1public utilities and their energy-related affiliates.
2    (c) Public Utility Ethics and Compliance Monitor. To
3ensure that public utilities meet the highest level of ethical
4standards, including, but not limited to, those standards
5established in this Section, the Commission shall, within 60
6days after the effective date of this amendatory Act of the
7102nd General Assembly, establish an Ethics and Accountability
8Division at the Commission and shall create a new position of
9Public Utility Ethics and Compliance Monitor who reports to
10the Executive Director of the Commission. The role of the
11Public Utility Ethics and Compliance Monitor shall be to
12oversee electric and gas public utilities' compliance with the
13standards established in this Section, the Illinois
14Administrative Code, and any other regulatory or statutory
15obligation regarding standards of ethical conduct. The
16responsibilities of the Public Utility Ethics and Compliance
17Monitor shall include:
18        (1) Hiring additional staff for the Ethics and
19    Accountability Division, as deemed necessary to fulfill
20    the duties imposed under this Section.
21        (2) Overseeing each public utility's Chief Compliance
22    and Ethics Officer's monitoring, auditing, investigation,
23    enforcement, reporting, disciplinary activities, and any
24    other actions required of the Chief Compliance and Ethics
25    Officer pursuant to subsection (d) of this Section. If the
26    Public Utility Ethics and Compliance Monitor finds a

 

 

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1    public utility has not complied with the standards set
2    forth in this Section, or with administrative rules
3    implementing this Section, the Public Utility Ethics and
4    Compliance Monitor shall detail such deficiencies in a
5    report to the Commission and shall include a
6    recommendation for Commission action.
7        (3) Documenting violations of the standards in this
8    Section or in related Sections of the Illinois
9    Administrative Code and, in coordination with the
10    utility's Chief Compliance and Ethics Officer, ensuring
11    each public utility administers appropriate internal
12    disciplinary actions and provides transparent reporting to
13    the Commission. If there are violations of the standards
14    in this Section or in related Sections of the Illinois
15    Administrative Code where the public utility does not take
16    disciplinary action or where that action is not aligned
17    with the recommendation of the Public Utility Ethics and
18    Compliance Monitor, the Public Utility Ethics and
19    Compliance Monitor shall, within 30 days, report the
20    violation, the recommended disciplinary action, and the
21    public utility's actual disciplinary action, to the
22    Executive Director of the Commission. Such reports shall
23    be included in the annual ethics report required by
24    paragraph (5) of this subsection (c) and must describe the
25    violation and related recommendations.
26        (4) Reviewing and keeping informed regarding internal

 

 

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1    controls, code of ethical conduct, practices, procedures,
2    and conduct of each public utility. The Public Utilities
3    Ethics and Compliance Monitor may recommend any new
4    internal controls, policies, practices or procedures the
5    public utility should undertake in order to ensure
6    compliance with this Section and with relevant Sections of
7    the Illinois Administrative Code.
8        (5) Publishing an annual ethics audit for each
9    electric and gas public utility describing the public
10    utility's internal controls, policies, practices, and
11    procedures to comply with statutes, rules, court orders,
12    or other applicable authority. The report shall include a
13    record of any disciplinary actions taken related to
14    unethical conduct as well as any recommendations made by
15    the Public Utility Ethics and Compliance Monitor and the
16    public utility's response to each recommendation. This
17    report must be made public and the Commission may make
18    necessary redactions.
19        (6) Monitoring, auditing, and subpoenaing all records
20    necessary for the Public Utility Ethics and Compliance
21    Monitor to meet the responsibilities imposed under this
22    Section and related rules, including, but not limited to,
23    contracts with third party entities, accounting records,
24    communication with public officials or their staff,
25    lobbying activities, expenses on lobbyists and
26    consultants, legal expenses, and internal compliance

 

 

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1    policies.
2    (d)(1) No later than 60 days after the effective date of
3this amendatory Act of the 102nd General Assembly, each public
4utility shall establish a position of Chief Ethics and
5Compliance Officer if such position does not already exist
6within the utility or at an affiliated company, provided that
7if the position exists at an affiliated company such
8individual may be designated to serve in this role for the
9utility. The Chief Ethics and Compliance Officer shall be
10responsible for ensuring that the public utility complies with
11the highest standards of ethical conduct, including, but not
12limited to, complying with the standards imposed under this
13Section, those adopted pursuant to a rulemaking authorized by
14this Section, and other applicable requirements of Illinois
15law and rules.
16    (2) Each public utility's Chief Ethics and Compliance
17Officer shall:
18        (A) oversee creation and implementation of a code of
19    ethical conduct for the public utility, applicable to all
20    directors, officers, employees, and lobbyists of the
21    public utility, as well as to all contractors,
22    consultants, agents, vendors, and business partners of the
23    public utility in connection with their activities with or
24    on behalf of the public utility;
25        (B) oversee training for public utility directors,
26    officers, and employees, as well as contractors,

 

 

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1    consultants, lobbyists and political consultants, on the
2    public utility's code of ethical conduct, practices, and
3    procedures to advise agents, vendors, and business
4    partners of the public utility of the applicability of the
5    code of ethical conduct to their activities with or on
6    behalf of the public utility;
7        (C) oversee the ongoing monitoring of all contractors,
8    consultants, and vendors who are contracted for the
9    purpose of carrying out lobbying activities to ensure
10    their continued compliance with applicable ethical
11    standards;
12        (D) at least annually, oversee a review of the public
13    utility's internal controls, code of ethical conduct,
14    practices, and procedures to assess their continued
15    effectiveness to ensure the highest standards of ethical
16    conduct among the public utility's directors, officers,
17    employees, contractors, consultants, lobbyists, vendors,
18    agents and business partners; and
19        (E) maintain records of all conduct determined to be
20    in violation of Illinois law, rules, and regulations, and
21    the utility's response to that conduct, and make such
22    records available for inspection by the Public Utility
23    Ethics and Compliance Monitor.
24    (e) In addition to those standards established under this
25Section, those adopted pursuant to a rulemaking authorized by
26this Section, and other applicable requirements of Illinois

 

 

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1law and rules, each public utility Chief Ethics and Compliance
2Officer shall oversee and ensure the development and
3implementation of internal controls, policies, and procedures
4to achieve the objectives set forth in paragraphs (1) through
5(3) of this subsection. Such implementation shall begin no
6later than 90 days after the effective date of this amendatory
7Act of the 102nd General Assembly.
8        (1) The hiring of contractors, consultants and vendors
9    for the purpose of carrying out lobbying pursuant to the
10    Lobbyist Registration Act shall be reviewed and approved
11    by the Chief Ethics and Compliance Officer.
12        (2) No agreement between a public utility and a
13    contractor, consultant, or vendor engaged for the purpose
14    of carrying out lobbying pursuant to the Lobbyist
15    Registration Act shall permit that contractor, consultant,
16    or vendor to subcontract any portion of that work.
17        (3) Public utilities shall require contractors,
18    consultants, and vendors who are contracted for the
19    purpose of carrying out lobbying pursuant to the Lobbyist
20    Registration Act to provide detailed invoices and reports
21    describing activities taken and amounts billed for such
22    activities, including all persons involved and anything of
23    value requested or solicited or provided to public
24    officials or their staff, including hiring requests. No
25    such contractor, consultant, or vendor shall be paid
26    without having first submitted a detailed invoice or

 

 

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1    report.
2        For purposes of this Section, "anything of value"
3    includes, but is not limited to, money, gifts,
4    entertainment, hiring referrals and recommendations to the
5    public utility, campaign contributions, vendor referrals,
6    and contributions to charitable organizations solicited by
7    or on behalf of the public official.
8    (f) Each public utility shall be required to submit an
9annual ethics and compliance report to the Commission no later
10than May 1 of each year, beginning May 1, 2022. The utility's
11Chief Ethics and Compliance Officer shall oversee the
12preparation and submission of the report and shall certify it.
13Each report shall describe in detail the public utility's
14internal controls, codes of ethical conduct, practices, and
15procedures. The reporting implemented during the reporting
16period to comply with the standards set forth in this Section,
17rules adopted by the Commission, and other applicable
18requirements of Illinois law and rules. Each report shall also
19identify any material changes implemented to such internal
20controls, code of ethical conduct, practices, and procedures
21during the reporting period, as well as any material changes
22implemented, or anticipated to be implemented, in the calendar
23year in which the report is filed. Each report shall, for the
24applicable reporting period include at least the following
25information:
26        (1) a summary and description of the public utility's

 

 

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1    system of financial and accounting procedures, internal
2    controls, and practices, including an explanation of how
3    this system is reasonably designed to ensure the
4    maintenance of fair and accurate books, records, and
5    accounts and to provide reasonable assurances that
6    transactions are recorded as necessary to permit
7    preparation of financial statements in conformity with
8    generally accepted accounting principles and Commission
9    requirements and to maintain accountability for assets;
10        (2) a summary and description of the public utility's
11    process for conducting an assessment of ethics and
12    compliance risks and a representation that an assessment
13    was conducted in accordance with those risks and shared
14    with the public utility's senior management and board of
15    directors;
16        (3) a summary of the public utility's implementation
17    of mechanisms, including, but not limited to, training
18    programs designed to ensure that its internal controls,
19    code of ethical conduct, practices, and procedures are
20    effectively communicated to all directors, officers,
21    employees, contractors, consultants, lobbyists, vendors,
22    agents, and business partners;
23        (4) a summary of the public utility's efforts to
24    ensure that its directors and senior management provide
25    strong, explicit, and visible support and commitment to
26    its corporate policy against violations of federal and

 

 

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1    State law;
2        (5) a summary of the public utility's implementation
3    of mechanisms designed to effectively enforce its internal
4    controls, code of ethical conduct, practices, and
5    procedures, including appropriately providing incentives
6    for compliance, disciplining violators, and applying such
7    code, controls, policies, practices, and procedures
8    consistently and fairly regardless of the position held
9    by, or the importance of, the director, officer, or
10    employee; and
11        (6) a summary of the public utility's implementation
12    of procedures to ensure that, where misconduct is
13    discovered, reasonable steps are taken to remedy the harm
14    resulting from such misconduct, including disciplinary
15    action, logging the conduct and the utility's response as
16    required by item (E) of paragraph (2) of subsection (d) of
17    this Section and assessing and modifying as appropriate
18    the internal controls, code, policies, practices and
19    procedures necessary to ensure that the compliance program
20    is effective.
21        For purposes of this Section, "reporting period" means
22    the most recent 12-month calendar year period preceding
23    the applicable May 1 annual report filing date.
24    (g) Notwithstanding the provisions of this Section, the
25Commission shall initiate a management audit pursuant to
26Section 8-102 of this Act by the later of 18 months after the

 

 

SB2408 Enrolled- 578 -LRB102 11366 BMS 16699 b

1effective date of this amendatory Act of the 102nd General
2Assembly or 18 months after a conviction or a plea or agreement
3of each public utility that, on or after January 1, 2020, has
4been found guilty or entered a guilty plea regarding any
5felony offense or has entered into a Deferred Prosecution
6Agreement for a felony offense. Such audit shall address, at a
7minimum, the topics identified in paragraphs (1) through (6)
8of subsection (f).
9    (h) Each public utility that files a report pursuant to
10subsection (f) must submit the specified filing fee at the
11time the Chief Clerk of the Commission accepts the filing. The
12filing fees applicable to each annual report are as follows:
13$15,000 for public utilities that serve fewer than 100,000
14customers in the State; $75,000 for public utilities that
15serve at least 100,000 customers but not more than 500,000
16customers in the State; $200,000 for public utilities that
17serve at least 500,000 customers in the State but not more than
183,000,000; and $500,000 for public utilities that serve at
19least 3,000,000 customers in the State.
20    (i) In the event the Public Utility Ethics and Compliance
21Monitor finds a public utility does not comply with any
22portion of this Section, or with the rules adopted under this
23Section, the Public Utility Ethics and Compliance Monitor
24shall issue a Report to the Commission detailing the public
25utility's deficiencies. The Commission shall have authority to
26open an investigation and shall order remediation and

 

 

SB2408 Enrolled- 579 -LRB102 11366 BMS 16699 b

1penalties, including fines, as appropriate.
2    (j) Each year, each public utility in the State shall
3remit amounts necessary for the Commission to pay the wages,
4overhead, travel expenses, and other costs of the Public
5Utility Ethics and Compliance Monitor. The public utility
6shall remit payment to the Commission in an amount determined
7by the Commission based on that public utility's proportional
8share, by number of customers.
9    (k) The costs of a public utility that arise from a
10criminal investigation or result from an investigation
11initiated by the Commission as the result of an ethics
12violation are not costs of service and shall not be
13recoverable in rates.
14    (l) The Commission shall have the authority to adopt rules
15and emergency rules where applicable to implement this
16Section.
 
17    (220 ILCS 5/4-604.5 new)
18    Sec. 4-604.5. Restitution for misconduct.
19    (a) It is the policy of this State that public utility
20ethical and criminal misconduct shall not be tolerated. The
21General Assembly finds it necessary to collect restitution, to
22be distributed as described in subsection (e), from a public
23utility that has been found guilty of violations of criminal
24law or that has entered into a Deferred Prosecution Agreement
25that details violations of criminal law that result in harm to

 

 

SB2408 Enrolled- 580 -LRB102 11366 BMS 16699 b

1ratepayers.
2    (b) In light of such violations, the Illinois Commerce
3Commission shall, within 150 days after the effective date of
4this amendatory Act of the 102nd General Assembly, initiate an
5investigation as to whether Commonwealth Edison collected,
6spent, allocated, transferred, remitted, or caused in any
7other way to be expended ratepayer funds in connection with
8the conduct detailed in the Deferred Prosecution Agreement of
9July 16, 2020 between the United States Attorney for the
10Northern District of Illinois and Commonwealth Edison. The
11investigation shall also determine whether any ratepayer funds
12were used to pay the criminal penalty agreed to in the Deferred
13Prosecution Agreement. The investigation shall determine
14whether the public utility collected, spent, allocated,
15transferred, remitted, or caused in any other way to be
16expended ratepayer funds that were not lawfully recoverable
17through rates, and which should accordingly be refunded to
18ratepayers and calculate such benefits to initiate a refund to
19ratepayers as a result of such conduct. The investigation
20shall conclude no later than 330 days following initiation and
21shall be conducted as a contested case, as defined in Section
221-30 of the Illinois Administrative Procedure Act.
23    (c) If regulated entities are found guilty of criminal
24conduct, the Commission may initiate an investigation, impose
25penalties, order restitution and such other remedies it deems
26necessary, and initiate refunds to ratepayers as described in

 

 

SB2408 Enrolled- 581 -LRB102 11366 BMS 16699 b

1subsection (b). Such investigation and proceeding may commence
2within 150 days of a finding of guilt. Any funds collected
3pursuant to this subsection shall be distributed as described
4in subsection (e). The Commission may order any other remedies
5it deems necessary.
6    (d) Pursuant to subsection (e), the investigation shall
7calculate a schedule for remittance to State funds and to
8ratepayers, over a period of no more than 4 years, to be paid
9by the public utility from profits, returns, or shareholder
10dollars. No costs related to the investigation or contested
11proceeding authorized by this Section, restitution, or refunds
12may be recoverable through rates.
13    (e) Funds collected pursuant to this Section, for the
14purposes of restitution, shall be repaid by the public utility
15as a per therm or per-kilowatt-hour credit to the public
16utility's ratepayers as a separate line item on the utility
17bill.
18    (f) No public utility may use ratepayer funds to pay a
19criminal penalty imposed by any local, State, or federal law
20enforcement entity or court.
21    (g) Any penalties, restitution, refunds, or remedies
22provided for in this Section are in addition to and not a
23substitution for other remedies that may be provided for by
24law.
 
25    (220 ILCS 5/4-605 new)

 

 

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1    Sec. 4-605. Reliability mitigation plan findings. The
2General Assembly finds that reducing carbon dioxide and
3copollutant emissions in a manner that does not threaten
4electric reliability and resource adequacy is essential to the
5health and safety of all Illinois citizens. Therefore, the
6Commission shall review reliability mitigation plans filed
7pursuant to Section 9.15 of the Environmental Protection Act
8to ensure adequate, reliable, affordable, efficient, and
9environmentally sustainable electric service is available to
10ratepayers by approving reliability mitigation plans that
11permit the Illinois Pollution Control Board to enforce
12emission reductions in a manner that preserves reliability and
13resource adequacy in wholesale and retail electricity markets.
 
14    (220 ILCS 5/5-117)
15    Sec. 5-117. Supplier diversity goals.
16    (a) The public policy of this State is to collaboratively
17work with companies that serve Illinois residents to improve
18their supplier diversity in a non-antagonistic manner.
19    (b) The Commission shall require all gas, electric, and
20water companies with at least 100,000 customers under its
21authority, as well as suppliers of wind energy, solar energy,
22hydroelectricity, nuclear energy, and any other supplier of
23energy within this State other than wind energy and solar
24energy required to comply with the reporting requirements
25under Section 1505-215 of the Department of Labor Law of the

 

 

SB2408 Enrolled- 583 -LRB102 11366 BMS 16699 b

1Civil Administrative Code of Illinois, to submit an annual
2report by April 15, 2015 and every April 15 thereafter, in a
3searchable Adobe PDF format, on all procurement goals and
4actual spending for female-owned, minority-owned,
5veteran-owned, and small business enterprises in the previous
6calendar year. These goals shall be expressed as a percentage
7of the total work performed by the entity submitting the
8report, and the actual spending for all female-owned,
9minority-owned, veteran-owned, and small business enterprises
10shall also be expressed as a percentage of the total work
11performed by the entity submitting the report.
12    (c) Each participating company in its annual report shall
13include the following information:
14        (1) an explanation of the plan for the next year to
15    increase participation;
16        (2) an explanation of the plan to increase the goals;
17        (3) the areas of procurement each company shall be
18    actively seeking more participation in in the next year;
19        (4) an outline of the plan to alert and encourage
20    potential vendors in that area to seek business from the
21    company;
22        (5) an explanation of the challenges faced in finding
23    quality vendors and offer any suggestions for what the
24    Commission could do to be helpful to identify those
25    vendors;
26        (6) a list of the certifications the company

 

 

SB2408 Enrolled- 584 -LRB102 11366 BMS 16699 b

1    recognizes;
2        (7) the point of contact for any potential vendor who
3    wishes to do business with the company and explain the
4    process for a vendor to enroll with the company as a
5    minority-owned, women-owned, or veteran-owned company; and
6        (8) any particular success stories to encourage other
7    companies to emulate best practices.
8    (d) Each annual report shall include as much
9State-specific data as possible. If the submitting entity does
10not submit State-specific data, then the company shall include
11any national data it does have and explain why it could not
12submit State-specific data and how it intends to do so in
13future reports, if possible.
14    (e) Each annual report shall include the rules,
15regulations, and definitions used for the procurement goals in
16the company's annual report.
17    (f) The Commission and all participating entities shall
18hold an annual workshop open to the public in 2015 and every
19year thereafter on the state of supplier diversity to
20collaboratively seek solutions to structural impediments to
21achieving stated goals, including testimony from each
22participating entity as well as subject matter experts and
23advocates. The Commission shall publish a database on its
24website of the point of contact for each participating entity
25for supplier diversity, along with a list of certifications
26each company recognizes from the information submitted in each

 

 

SB2408 Enrolled- 585 -LRB102 11366 BMS 16699 b

1annual report. The Commission shall publish each annual report
2on its website and shall maintain each annual report for at
3least 5 years.
4(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17;
5revised 7-22-19.)
 
6    (220 ILCS 5/8-103B)
7    Sec. 8-103B. Energy efficiency and demand-response
8measures.
9    (a) It is the policy of the State that electric utilities
10are required to use cost-effective energy efficiency and
11demand-response measures to reduce delivery load. Requiring
12investment in cost-effective energy efficiency and
13demand-response measures will reduce direct and indirect costs
14to consumers by decreasing environmental impacts and by
15avoiding or delaying the need for new generation,
16transmission, and distribution infrastructure. It serves the
17public interest to allow electric utilities to recover costs
18for reasonably and prudently incurred expenditures for energy
19efficiency and demand-response measures. As used in this
20Section, "cost-effective" means that the measures satisfy the
21total resource cost test. The low-income measures described in
22subsection (c) of this Section shall not be required to meet
23the total resource cost test. For purposes of this Section,
24the terms "energy-efficiency", "demand-response", "electric
25utility", and "total resource cost test" have the meanings set

 

 

SB2408 Enrolled- 586 -LRB102 11366 BMS 16699 b

1forth in the Illinois Power Agency Act. "Black, indigenous,
2and people of color" and "BIPOC" means people who are members
3of the groups described in subparagraphs (a) through (e) of
4paragraph (A) of subsection (1) of Section 2 of the Business
5Enterprise for Minorities, Women, and Persons with
6Disabilities Act.
7    (a-5) This Section applies to electric utilities serving
8more than 500,000 retail customers in the State for those
9multi-year plans commencing after December 31, 2017.
10    (b) For purposes of this Section, electric utilities
11subject to this Section that serve more than 3,000,000 retail
12customers in the State shall be deemed to have achieved a
13cumulative persisting annual savings of 6.6% from energy
14efficiency measures and programs implemented during the period
15beginning January 1, 2012 and ending December 31, 2017, which
16percent is based on the deemed average weather normalized
17sales of electric power and energy during calendar years 2014,
182015, and 2016 of 88,000,000 MWhs. For the purposes of this
19subsection (b) and subsection (b-5), the 88,000,000 MWhs of
20deemed electric power and energy sales shall be reduced by the
21number of MWhs equal to the sum of the annual consumption of
22customers that have opted out of are exempt from subsections
23(a) through (j) of this Section under paragraph (1) of
24subsection (l) of this Section, as averaged across the
25calendar years 2014, 2015, and 2016. After 2017, the deemed
26value of cumulative persisting annual savings from energy

 

 

SB2408 Enrolled- 587 -LRB102 11366 BMS 16699 b

1efficiency measures and programs implemented during the period
2beginning January 1, 2012 and ending December 31, 2017, shall
3be reduced each year, as follows, and the applicable value
4shall be applied to and count toward the utility's achievement
5of the cumulative persisting annual savings goals set forth in
6subsection (b-5):
7        (1) 5.8% deemed cumulative persisting annual savings
8    for the year ending December 31, 2018;
9        (2) 5.2% deemed cumulative persisting annual savings
10    for the year ending December 31, 2019;
11        (3) 4.5% deemed cumulative persisting annual savings
12    for the year ending December 31, 2020;
13        (4) 4.0% deemed cumulative persisting annual savings
14    for the year ending December 31, 2021;
15        (5) 3.5% deemed cumulative persisting annual savings
16    for the year ending December 31, 2022;
17        (6) 3.1% deemed cumulative persisting annual savings
18    for the year ending December 31, 2023;
19        (7) 2.8% deemed cumulative persisting annual savings
20    for the year ending December 31, 2024;
21        (8) 2.5% deemed cumulative persisting annual savings
22    for the year ending December 31, 2025;
23        (9) 2.3% deemed cumulative persisting annual savings
24    for the year ending December 31, 2026;
25        (10) 2.1% deemed cumulative persisting annual savings
26    for the year ending December 31, 2027;

 

 

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1        (11) 1.8% deemed cumulative persisting annual savings
2    for the year ending December 31, 2028;
3        (12) 1.7% deemed cumulative persisting annual savings
4    for the year ending December 31, 2029; and
5        (13) 1.5% deemed cumulative persisting annual savings
6    for the year ending December 31, 2030; .
7        (14) 1.3% deemed cumulative persisting annual savings
8    for the year ending December 31, 2031;
9        (15) 1.1% deemed cumulative persisting annual savings
10    for the year ending December 31, 2032;
11        (16) 0.9% deemed cumulative persisting annual savings
12    for the year ending December 31, 2033;
13        (17) 0.7% deemed cumulative persisting annual savings
14    for the year ending December 31, 2034;
15        (18) 0.5% deemed cumulative persisting annual savings
16    for the year ending December 31, 2035;
17        (19) 0.4% deemed cumulative persisting annual savings
18    for the year ending December 31, 2036;
19        (20) 0.3% deemed cumulative persisting annual savings
20    for the year ending December 31, 2037;
21        (21) 0.2% deemed cumulative persisting annual savings
22    for the year ending December 31, 2038;
23        (22) 0.1% deemed cumulative persisting annual savings
24    for the year ending December 31, 2039; and
25        (23) 0.0% deemed cumulative persisting annual savings
26    for the year ending December 31, 2040 and all subsequent

 

 

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1    years.
2    For purposes of this Section, "cumulative persisting
3annual savings" means the total electric energy savings in a
4given year from measures installed in that year or in previous
5years, but no earlier than January 1, 2012, that are still
6operational and providing savings in that year because the
7measures have not yet reached the end of their useful lives.
8    (b-5) Beginning in 2018, electric utilities subject to
9this Section that serve more than 3,000,000 retail customers
10in the State shall achieve the following cumulative persisting
11annual savings goals, as modified by subsection (f) of this
12Section and as compared to the deemed baseline of 88,000,000
13MWhs of electric power and energy sales set forth in
14subsection (b), as reduced by the number of MWhs equal to the
15sum of the annual consumption of customers that have opted out
16of are exempt from subsections (a) through (j) of this Section
17under paragraph (1) of subsection (l) of this Section as
18averaged across the calendar years 2014, 2015, and 2016,
19through the implementation of energy efficiency measures
20during the applicable year and in prior years, but no earlier
21than January 1, 2012:
22        (1) 7.8% cumulative persisting annual savings for the
23    year ending December 31, 2018;
24        (2) 9.1% cumulative persisting annual savings for the
25    year ending December 31, 2019;
26        (3) 10.4% cumulative persisting annual savings for the

 

 

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1    year ending December 31, 2020;
2        (4) 11.8% cumulative persisting annual savings for the
3    year ending December 31, 2021;
4        (5) 13.1% cumulative persisting annual savings for the
5    year ending December 31, 2022;
6        (6) 14.4% cumulative persisting annual savings for the
7    year ending December 31, 2023;
8        (7) 15.7% cumulative persisting annual savings for the
9    year ending December 31, 2024;
10        (8) 17% cumulative persisting annual savings for the
11    year ending December 31, 2025;
12        (9) 17.9% cumulative persisting annual savings for the
13    year ending December 31, 2026;
14        (10) 18.8% cumulative persisting annual savings for
15    the year ending December 31, 2027;
16        (11) 19.7% cumulative persisting annual savings for
17    the year ending December 31, 2028;
18        (12) 20.6% cumulative persisting annual savings for
19    the year ending December 31, 2029; and
20        (13) 21.5% cumulative persisting annual savings for
21    the year ending December 31, 2030.
22    No later than December 31, 2021, the Illinois Commerce
23Commission shall establish additional cumulative persisting
24annual savings goals for the years 2031 through 2035. No later
25than December 31, 2024, the Illinois Commerce Commission shall
26establish additional cumulative persisting annual savings

 

 

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1goals for the years 2036 through 2040. The Commission shall
2also establish additional cumulative persisting annual savings
3goals every 5 years thereafter to ensure that utilities always
4have goals that extend at least 11 years into the future. The
5cumulative persisting annual savings goals beyond the year
62030 shall increase by 0.9 percentage points per year, absent
7a Commission decision to initiate a proceeding to consider
8establishing goals that increase by more or less than that
9amount. Such a proceeding must be conducted in accordance with
10the procedures described in subsection (f) of this Section. If
11such a proceeding is initiated, the cumulative persisting
12annual savings goals established by the Commission through
13that proceeding shall reflect the Commission's best estimate
14of the maximum amount of additional savings that are forecast
15to be cost-effectively achievable unless such best estimates
16would result in goals that represent less than 0.5 percentage
17point annual increases in total cumulative persisting annual
18savings. The Commission may only establish goals that
19represent less than 0.5 percentage point annual increases in
20cumulative persisting annual savings if it can demonstrate,
21based on clear and convincing evidence and through independent
22analysis, that 0.5 percentage point increases are not
23cost-effectively achievable. The Commission shall inform its
24decision based on an energy efficiency potential study that
25conforms to the requirements of this Section.
26    (b-10) For purposes of this Section, electric utilities

 

 

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1subject to this Section that serve less than 3,000,000 retail
2customers but more than 500,000 retail customers in the State
3shall be deemed to have achieved a cumulative persisting
4annual savings of 6.6% from energy efficiency measures and
5programs implemented during the period beginning January 1,
62012 and ending December 31, 2017, which is based on the deemed
7average weather normalized sales of electric power and energy
8during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
9For the purposes of this subsection (b-10) and subsection
10(b-15), the 36,900,000 MWhs of deemed electric power and
11energy sales shall be reduced by the number of MWhs equal to
12the sum of the annual consumption of customers that have opted
13out of are exempt from subsections (a) through (j) of this
14Section under paragraph (1) of subsection (l) of this Section,
15as averaged across the calendar years 2014, 2015, and 2016.
16After 2017, the deemed value of cumulative persisting annual
17savings from energy efficiency measures and programs
18implemented during the period beginning January 1, 2012 and
19ending December 31, 2017, shall be reduced each year, as
20follows, and the applicable value shall be applied to and
21count toward the utility's achievement of the cumulative
22persisting annual savings goals set forth in subsection
23(b-15):
24        (1) 5.8% deemed cumulative persisting annual savings
25    for the year ending December 31, 2018;
26        (2) 5.2% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2019;
2        (3) 4.5% deemed cumulative persisting annual savings
3    for the year ending December 31, 2020;
4        (4) 4.0% deemed cumulative persisting annual savings
5    for the year ending December 31, 2021;
6        (5) 3.5% deemed cumulative persisting annual savings
7    for the year ending December 31, 2022;
8        (6) 3.1% deemed cumulative persisting annual savings
9    for the year ending December 31, 2023;
10        (7) 2.8% deemed cumulative persisting annual savings
11    for the year ending December 31, 2024;
12        (8) 2.5% deemed cumulative persisting annual savings
13    for the year ending December 31, 2025;
14        (9) 2.3% deemed cumulative persisting annual savings
15    for the year ending December 31, 2026;
16        (10) 2.1% deemed cumulative persisting annual savings
17    for the year ending December 31, 2027;
18        (11) 1.8% deemed cumulative persisting annual savings
19    for the year ending December 31, 2028;
20        (12) 1.7% deemed cumulative persisting annual savings
21    for the year ending December 31, 2029; and
22        (13) 1.5% deemed cumulative persisting annual savings
23    for the year ending December 31, 2030; .
24        (14) 1.3% deemed cumulative persisting annual savings
25    for the year ending December 31, 2031;
26        (15) 1.1% deemed cumulative persisting annual savings

 

 

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1    for the year ending December 31, 2032;
2        (16) 0.9% deemed cumulative persisting annual savings
3    for the year ending December 31, 2033;
4        (17) 0.7% deemed cumulative persisting annual savings
5    for the year ending December 31, 2034;
6        (18) 0.5% deemed cumulative persisting annual savings
7    for the year ending December 31, 2035;
8        (19) 0.4% deemed cumulative persisting annual savings
9    for the year ending December 31, 2036;
10        (20) 0.3% deemed cumulative persisting annual savings
11    for the year ending December 31, 2037;
12        (21) 0.2% deemed cumulative persisting annual savings
13    for the year ending December 31, 2038;
14        (22) 0.1% deemed cumulative persisting annual savings
15    for the year ending December 31, 2039; and
16        (23) 0.0% deemed cumulative persisting annual savings
17    for the year ending December 31, 2040 and all subsequent
18    years.
19    (b-15) Beginning in 2018, electric utilities subject to
20this Section that serve less than 3,000,000 retail customers
21but more than 500,000 retail customers in the State shall
22achieve the following cumulative persisting annual savings
23goals, as modified by subsection (b-20) and subsection (f) of
24this Section and as compared to the deemed baseline as reduced
25by the number of MWhs equal to the sum of the annual
26consumption of customers that have opted out of are exempt

 

 

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1from subsections (a) through (j) of this Section under
2paragraph (1) of subsection (l) of this Section as averaged
3across the calendar years 2014, 2015, and 2016, through the
4implementation of energy efficiency measures during the
5applicable year and in prior years, but no earlier than
6January 1, 2012:
7        (1) 7.4% cumulative persisting annual savings for the
8    year ending December 31, 2018;
9        (2) 8.2% cumulative persisting annual savings for the
10    year ending December 31, 2019;
11        (3) 9.0% cumulative persisting annual savings for the
12    year ending December 31, 2020;
13        (4) 9.8% cumulative persisting annual savings for the
14    year ending December 31, 2021;
15        (5) 10.6% cumulative persisting annual savings for the
16    year ending December 31, 2022;
17        (6) 11.4% cumulative persisting annual savings for the
18    year ending December 31, 2023;
19        (7) 12.2% cumulative persisting annual savings for the
20    year ending December 31, 2024;
21        (8) 13% cumulative persisting annual savings for the
22    year ending December 31, 2025;
23        (9) 13.6% cumulative persisting annual savings for the
24    year ending December 31, 2026;
25        (10) 14.2% cumulative persisting annual savings for
26    the year ending December 31, 2027;

 

 

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1        (11) 14.8% cumulative persisting annual savings for
2    the year ending December 31, 2028;
3        (12) 15.4% cumulative persisting annual savings for
4    the year ending December 31, 2029; and
5        (13) 16% cumulative persisting annual savings for the
6    year ending December 31, 2030.
7    No later than December 31, 2021, the Illinois Commerce
8Commission shall establish additional cumulative persisting
9annual savings goals for the years 2031 through 2035. No later
10than December 31, 2024, the Illinois Commerce Commission shall
11establish additional cumulative persisting annual savings
12goals for the years 2036 through 2040. The Commission shall
13also establish additional cumulative persisting annual savings
14goals every 5 years thereafter to ensure that utilities always
15have goals that extend at least 11 years into the future. The
16cumulative persisting annual savings goals beyond the year
172030 shall increase by 0.6 percentage points per year, absent
18a Commission decision to initiate a proceeding to consider
19establishing goals that increase by more or less than that
20amount. Such a proceeding must be conducted in accordance with
21the procedures described in subsection (f) of this Section. If
22such a proceeding is initiated, the cumulative persisting
23annual savings goals established by the Commission through
24that proceeding shall reflect the Commission's best estimate
25of the maximum amount of additional savings that are forecast
26to be cost-effectively achievable unless such best estimates

 

 

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1would result in goals that represent less than 0.4 percentage
2point annual increases in total cumulative persisting annual
3savings. The Commission may only establish goals that
4represent less than 0.4 percentage point annual increases in
5cumulative persisting annual savings if it can demonstrate,
6based on clear and convincing evidence and through independent
7analysis, that 0.4 percentage point increases are not
8cost-effectively achievable. The Commission shall inform its
9decision based on an energy efficiency potential study that
10conforms to the requirements of this Section.
11    The difference between the cumulative persisting annual
12savings goal for the applicable calendar year and the
13cumulative persisting annual savings goal for the immediately
14preceding calendar year is 0.8% for the period of January 1,
152018 through December 31, 2025 and 0.6% for the period of
16January 1, 2026 through December 31, 2030.
17    (b-20) Each electric utility subject to this Section may
18include cost-effective voltage optimization measures in its
19plans submitted under subsections (f) and (g) of this Section,
20and the costs incurred by a utility to implement the measures
21under a Commission-approved plan shall be recovered under the
22provisions of Article IX or Section 16-108.5 of this Act. For
23purposes of this Section, the measure life of voltage
24optimization measures shall be 15 years. The measure life
25period is independent of the depreciation rate of the voltage
26optimization assets deployed. Utilities may claim savings from

 

 

SB2408 Enrolled- 598 -LRB102 11366 BMS 16699 b

1voltage optimization on circuits for more than 15 years if
2they can demonstrate that they have made additional
3investments necessary to enable voltage optimization savings
4to continue beyond 15 years. Such demonstrations must be
5subject to the review of independent evaluation.
6    Within 270 days after June 1, 2017 (the effective date of
7Public Act 99-906), an electric utility that serves less than
83,000,000 retail customers but more than 500,000 retail
9customers in the State shall file a plan with the Commission
10that identifies the cost-effective voltage optimization
11investment the electric utility plans to undertake through
12December 31, 2024. The Commission, after notice and hearing,
13shall approve or approve with modification the plan within 120
14days after the plan's filing and, in the order approving or
15approving with modification the plan, the Commission shall
16adjust the applicable cumulative persisting annual savings
17goals set forth in subsection (b-15) to reflect any amount of
18cost-effective energy savings approved by the Commission that
19is greater than or less than the following cumulative
20persisting annual savings values attributable to voltage
21optimization for the applicable year:
22        (1) 0.0% of cumulative persisting annual savings for
23    the year ending December 31, 2018;
24        (2) 0.17% of cumulative persisting annual savings for
25    the year ending December 31, 2019;
26        (3) 0.17% of cumulative persisting annual savings for

 

 

SB2408 Enrolled- 599 -LRB102 11366 BMS 16699 b

1    the year ending December 31, 2020;
2        (4) 0.33% of cumulative persisting annual savings for
3    the year ending December 31, 2021;
4        (5) 0.5% of cumulative persisting annual savings for
5    the year ending December 31, 2022;
6        (6) 0.67% of cumulative persisting annual savings for
7    the year ending December 31, 2023;
8        (7) 0.83% of cumulative persisting annual savings for
9    the year ending December 31, 2024; and
10        (8) 1.0% of cumulative persisting annual savings for
11    the year ending December 31, 2025 and all subsequent
12    years.
13    (b-25) In the event an electric utility jointly offers an
14energy efficiency measure or program with a gas utility under
15plans approved under this Section and Section 8-104 of this
16Act, the electric utility may continue offering the program,
17including the gas energy efficiency measures, in the event the
18gas utility discontinues funding the program. In that event,
19the energy savings value associated with such other fuels
20shall be converted to electric energy savings on an equivalent
21Btu basis for the premises. However, the electric utility
22shall prioritize programs for low-income residential customers
23to the extent practicable. An electric utility may recover the
24costs of offering the gas energy efficiency measures under
25this subsection (b-25).
26    For those energy efficiency measures or programs that save

 

 

SB2408 Enrolled- 600 -LRB102 11366 BMS 16699 b

1both electricity and other fuels but are not jointly offered
2with a gas utility under plans approved under this Section and
3Section 8-104 or not offered with an affiliated gas utility
4under paragraph (6) of subsection (f) of Section 8-104 of this
5Act, the electric utility may count savings of fuels other
6than electricity toward the achievement of its annual savings
7goal, and the energy savings value associated with such other
8fuels shall be converted to electric energy savings on an
9equivalent Btu basis at the premises.
10    In no event shall more than 10% of each year's applicable
11annual total savings requirement incremental goal as defined
12in paragraph (7.5) (7) of subsection (g) of this Section be met
13through savings of fuels other than electricity.
14    (b-27) Beginning in 2022, an electric utility may offer
15and promote measures that electrify space heating, water
16heating, cooling, drying, cooking, industrial processes, and
17other building and industrial end uses that would otherwise be
18served by combustion of fossil fuel at the premises, provided
19that the electrification measures reduce total energy
20consumption at the premises. The electric utility may count
21the reduction in energy consumption at the premises toward
22achievement of its annual savings goals. The reduction in
23energy consumption at the premises shall be calculated as the
24difference between: (A) the reduction in Btu consumption of
25fossil fuels as a result of electrification, converted to
26kilowatt-hour equivalents by dividing by 3,412 Btu's per

 

 

SB2408 Enrolled- 601 -LRB102 11366 BMS 16699 b

1kilowatt hour; and (B) the increase in kilowatt hours of
2electricity consumption resulting from the displacement of
3fossil fuel consumption as a result of electrification. An
4electric utility may recover the costs of offering and
5promoting electrification measures under this subsection
6(b-27).
7    In no event shall electrification savings counted toward
8each year's applicable annual total savings requirement, as
9defined in paragraph (7.5) of subsection (g) of this Section,
10be greater than:
11        (1) 5% per year for each year from 2022 through 2025;
12        (2) 10% per year for each year from 2026 through 2029;
13    and
14        (3) 15% per year for 2030 and all subsequent years.
15In addition, a minimum of 25% of all electrification savings
16counted toward a utility's applicable annual total savings
17requirement must be from electrification of end uses in
18low-income housing. The limitations on electrification savings
19that may be counted toward a utility's annual savings goals
20are separate from and in addition to the subsection (b-25)
21limitations governing the counting of the other fuel savings
22resulting from efficiency measures and programs.
23    As part of the annual informational filing to the
24Commission that is required under paragraph (9) of subsection
25(g) of this Section, each utility shall identify the specific
26electrification measures offered under this subjection (b-27);

 

 

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1the quantity of each electrification measure that was
2installed by its customers; the average total cost, average
3utility cost, average reduction in fossil fuel consumption,
4and average increase in electricity consumption associated
5with each electrification measure; the portion of
6installations of each electrification measure that were in
7low-income single-family housing, low-income multifamily
8housing, non-low-income single-family housing, non-low-income
9multifamily housing, commercial buildings, and industrial
10facilities; and the quantity of savings associated with each
11measure category in each customer category that are being
12counted toward the utility's applicable annual total savings
13requirement. Prior to installing an electrification measure,
14the utility shall provide a customer with an estimate of the
15impact of the new measure on the customer's average monthly
16electric bill and total annual energy expenses.
17    (c) Electric utilities shall be responsible for overseeing
18the design, development, and filing of energy efficiency plans
19with the Commission and may, as part of that implementation,
20outsource various aspects of program development and
21implementation. A minimum of 10%, for electric utilities that
22serve more than 3,000,000 retail customers in the State, and a
23minimum of 7%, for electric utilities that serve less than
243,000,000 retail customers but more than 500,000 retail
25customers in the State, of the utility's entire portfolio
26funding level for a given year shall be used to procure

 

 

SB2408 Enrolled- 603 -LRB102 11366 BMS 16699 b

1cost-effective energy efficiency measures from units of local
2government, municipal corporations, school districts, public
3housing, and community college districts, provided that a
4minimum percentage of available funds shall be used to procure
5energy efficiency from public housing, which percentage shall
6be equal to public housing's share of public building energy
7consumption.
8    The utilities shall also implement energy efficiency
9measures targeted at low-income households, which, for
10purposes of this Section, shall be defined as households at or
11below 80% of area median income, and expenditures to implement
12the measures shall be no less than $40,000,000 $25,000,000 per
13year for electric utilities that serve more than 3,000,000
14retail customers in the State and no less than $13,000,000
15$8,350,000 per year for electric utilities that serve less
16than 3,000,000 retail customers but more than 500,000 retail
17customers in the State. The ratio of spending on efficiency
18programs targeted at low-income multifamily buildings to
19spending on efficiency programs targeted at low-income
20single-family buildings shall be designed to achieve levels of
21savings from each building type that are approximately
22proportional to the magnitude of cost-effective lifetime
23savings potential in each building type. Investment in
24low-income whole-building weatherization programs shall
25constitute a minimum of 80% of a utility's total budget
26specifically dedicated to serving low-income customers.

 

 

SB2408 Enrolled- 604 -LRB102 11366 BMS 16699 b

1    The utilities shall work to bundle low-income energy
2efficiency offerings with other programs that serve low-income
3households to maximize the benefits going to these households.
4The utilities shall market and implement low-income energy
5efficiency programs in coordination with low-income assistance
6programs, the Illinois Solar for All Program, and
7weatherization whenever practicable. The program implementer
8shall walk the customer through the enrollment process for any
9programs for which the customer is eligible. The utilities
10shall also pilot targeting customers with high arrearages,
11high energy intensity (ratio of energy usage divided by home
12or unit square footage), or energy assistance programs with
13energy efficiency offerings, and then track reduction in
14arrearages as a result of the targeting. This targeting and
15bundling of low-income energy programs shall be offered to
16both low-income single-family and multifamily customers
17(owners and residents).
18    The utilities shall invest in health and safety measures
19appropriate and necessary for comprehensively weatherizing a
20home or multifamily building, and shall implement a health and
21safety fund of at least 15% of the total income-qualified
22weatherization budget that shall be used for the purpose of
23making grants for technical assistance, construction,
24reconstruction, improvement, or repair of buildings to
25facilitate their participation in the energy efficiency
26programs targeted at low-income single-family and multifamily

 

 

SB2408 Enrolled- 605 -LRB102 11366 BMS 16699 b

1households. These funds may also be used for the purpose of
2making grants for technical assistance, construction,
3reconstruction, improvement, or repair of the following
4buildings to facilitate their participation in the energy
5efficiency programs created by this Section: (1) buildings
6that are owned or operated by registered 501(c)(3) public
7charities; and (2) day care centers, day care homes, or group
8day care homes, as defined under 89 Ill. Adm. Code Part 406,
9407, or 408, respectively.
10    Each electric utility shall assess opportunities to
11implement cost-effective energy efficiency measures and
12programs through a public housing authority or authorities
13located in its service territory. If such opportunities are
14identified, the utility shall propose such measures and
15programs to address the opportunities. Expenditures to address
16such opportunities shall be credited toward the minimum
17procurement and expenditure requirements set forth in this
18subsection (c).
19    Implementation of energy efficiency measures and programs
20targeted at low-income households should be contracted, when
21it is practicable, to independent third parties that have
22demonstrated capabilities to serve such households, with a
23preference for not-for-profit entities and government agencies
24that have existing relationships with or experience serving
25low-income communities in the State.
26    Each electric utility shall develop and implement

 

 

SB2408 Enrolled- 606 -LRB102 11366 BMS 16699 b

1reporting procedures that address and assist in determining
2the amount of energy savings that can be applied to the
3low-income procurement and expenditure requirements set forth
4in this subsection (c). Each electric utility shall also track
5the types and quantities or volumes of insulation and air
6sealing materials, and their associated energy saving
7benefits, installed in energy efficiency programs targeted at
8low-income single-family and multifamily households.
9    The electric utilities shall participate in also convene a
10low-income energy efficiency accountability advisory committee
11("the committee"), which will directly inform to assist in the
12design, implementation, and evaluation of the low-income and
13public-housing energy efficiency programs. The committee shall
14be comprised of the electric utilities subject to the
15requirements of this Section, the gas utilities subject to the
16requirements of Section 8-104 of this Act, the utilities'
17low-income energy efficiency implementation contractors,
18nonprofit organizations, community action agencies, advocacy
19groups, State and local governmental agencies, public-housing
20organizations, and representatives of community-based
21organizations, especially those living in or working with
22environmental justice communities and BIPOC communities. The
23committee shall be composed of 2 geographically differentiated
24subcommittees: one for stakeholders in northern Illinois and
25one for stakeholders in central and southern Illinois. The
26subcommittees shall meet together at least twice per year.

 

 

SB2408 Enrolled- 607 -LRB102 11366 BMS 16699 b

1    There shall be one statewide leadership committee led by
2and composed of community-based organizations that are
3representative of BIPOC and environmental justice communities
4and that includes equitable representation from BIPOC
5communities. The leadership committee shall be composed of an
6equal number of representatives from the 2 subcommittees. The
7subcommittees shall address specific programs and issues, with
8the leadership committee convening targeted workgroups as
9needed. The leadership committee may elect to work with an
10independent facilitator to solicit and organize feedback,
11recommendations and meeting participation from a wide variety
12of community-based stakeholders. If a facilitator is used,
13they shall be fair and responsive to the needs of all
14stakeholders involved in the committee.
15     All committee meetings must be accessible, with rotating
16locations if meetings are held in-person, virtual
17participation options, and materials and agendas circulated in
18advance.
19    There shall also be opportunities for direct input by
20committee members outside of committee meetings, such as via
21individual meetings, surveys, emails and calls, to ensure
22robust participation by stakeholders with limited capacity and
23ability to attend committee meetings. Committee meetings shall
24emphasize opportunities to bundle and coordinate delivery of
25low-income energy efficiency with other programs that serve
26low-income communities, such as the Illinois Solar for All

 

 

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1Program and bill payment assistance programs. Meetings shall
2include educational opportunities for stakeholders to learn
3more about these additional offerings, and the committee shall
4assist in figuring out the best methods for coordinated
5delivery and implementation of offerings when serving
6low-income communities. The committee shall directly and
7equitably influence and inform utility low-income and
8public-housing energy efficiency programs and priorities.
9Participating utilities shall implement recommendations from
10the committee whenever possible.
11    Participating utilities shall track and report how input
12from the committee has led to new approaches and changes in
13their energy efficiency portfolios. This reporting shall occur
14at committee meetings and in quarterly energy efficiency
15reports to the Stakeholder Advisory Group and Illinois
16Commerce Commission, and other relevant reporting mechanisms.
17Participating utilities shall also report on relevant equity
18data and metrics requested by the committee, such as energy
19burden data, geographic, racial, and other relevant
20demographic data on where programs are being delivered and
21what populations programs are serving.
22    The Illinois Commerce Commission shall oversee and have
23relevant staff participate in the committee. The committee
24shall have a budget of 0.25% of each utility's entire
25efficiency portfolio funding for a given year. The budget
26shall be overseen by the Commission. The budget shall be used

 

 

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1to provide grants for community-based organizations serving on
2the leadership committee, stipends for community-based
3organizations participating in the committee, grants for
4community-based organizations to do energy efficiency outreach
5and education, and relevant meeting needs as determined by the
6leadership committee. The education and outreach shall
7include, but is not limited to, basic energy efficiency
8education, information about low-income energy efficiency
9programs, and information on the committee's purpose,
10structure, and activities.
11    (d) Notwithstanding any other provision of law to the
12contrary, a utility providing approved energy efficiency
13measures and, if applicable, demand-response measures in the
14State shall be permitted to recover all reasonable and
15prudently incurred costs of those measures from all retail
16customers, except as provided in subsection (l) of this
17Section, as follows, provided that nothing in this subsection
18(d) permits the double recovery of such costs from customers:
19        (1) The utility may recover its costs through an
20    automatic adjustment clause tariff filed with and approved
21    by the Commission. The tariff shall be established outside
22    the context of a general rate case. Each year the
23    Commission shall initiate a review to reconcile any
24    amounts collected with the actual costs and to determine
25    the required adjustment to the annual tariff factor to
26    match annual expenditures. To enable the financing of the

 

 

SB2408 Enrolled- 610 -LRB102 11366 BMS 16699 b

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

 

 

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1    (2), subsections (f) and (g) of this Section, and the
2    provisions of Article IX of this Act to the extent they do
3    not conflict with this paragraph (2). The energy
4    efficiency formula rate approved by the Commission shall
5    remain in effect at the discretion of the utility and
6    shall do the following:
7            (A) Provide for the recovery of the utility's
8        actual costs incurred under this Section that are
9        prudently incurred and reasonable in amount consistent
10        with Commission practice and law. The sole fact that a
11        cost differs from that incurred in a prior calendar
12        year or that an investment is different from that made
13        in a prior calendar year shall not imply the
14        imprudence or unreasonableness of that cost or
15        investment.
16            (B) Reflect the utility's actual year-end capital
17        structure for the applicable calendar year, excluding
18        goodwill, subject to a determination of prudence and
19        reasonableness consistent with Commission practice and
20        law. To enable the financing of the incremental
21        capital expenditures, including regulatory assets, for
22        electric utilities that serve less than 3,000,000
23        retail customers but more than 500,000 retail
24        customers in the State, a participating electric
25        utility's actual year-end capital structure that
26        includes a common equity ratio, excluding goodwill, of

 

 

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1        up to and including 50% of the total capital structure
2        shall be deemed reasonable and used to set rates.
3            (C) Include a cost of equity, which shall be
4        calculated as the sum of the following:
5                (i) the average for the applicable calendar
6            year of the monthly average yields of 30-year U.S.
7            Treasury bonds published by the Board of Governors
8            of the Federal Reserve System in its weekly H.15
9            Statistical Release or successor publication; and
10                (ii) 580 basis points.
11            At such time as the Board of Governors of the
12        Federal Reserve System ceases to include the monthly
13        average yields of 30-year U.S. Treasury bonds in its
14        weekly H.15 Statistical Release or successor
15        publication, the monthly average yields of the U.S.
16        Treasury bonds then having the longest duration
17        published by the Board of Governors in its weekly H.15
18        Statistical Release or successor publication shall
19        instead be used for purposes of this paragraph (2).
20            (D) Permit and set forth protocols, subject to a
21        determination of prudence and reasonableness
22        consistent with Commission practice and law, for the
23        following:
24                (i) recovery of incentive compensation expense
25            that is based on the achievement of operational
26            metrics, including metrics related to budget

 

 

SB2408 Enrolled- 613 -LRB102 11366 BMS 16699 b

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

 

 

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

 

 

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

 

 

SB2408 Enrolled- 616 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 617 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 618 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 619 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 620 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 621 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 622 -LRB102 11366 BMS 16699 b

1average yields of 30-year U.S. Treasury bonds published by the
2Board of Governors of the Federal Reserve System in its weekly
3H.15 Statistical Release or successor publication; and (ii)
4580 basis points, including a revenue conversion factor
5calculated to recover or refund all additional income taxes
6that may be payable or receivable as a result of that return.
7Capital investment costs shall be depreciated and recovered
8over their useful lives consistent with generally accepted
9accounting principles. The weighted average cost of capital
10shall be applied to the capital investment cost balance, less
11any accumulated depreciation and accumulated deferred income
12taxes, as of December 31 for a given year.
13    When an electric utility creates a regulatory asset under
14the provisions of this Section, the costs are recovered over a
15period during which customers also receive a benefit which is
16in the public interest. Accordingly, it is the intent of the
17General Assembly that an electric utility that elects to
18create a regulatory asset under the provisions of this Section
19shall recover all of the associated costs as set forth in this
20Section. After the Commission has approved the prudence and
21reasonableness of the costs that comprise the regulatory
22asset, the electric utility shall be permitted to recover all
23such costs, and the value and recoverability through rates of
24the associated regulatory asset shall not be limited, altered,
25impaired, or reduced.
26    (f) Beginning in 2017, each electric utility shall file an

 

 

SB2408 Enrolled- 623 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 624 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 625 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 626 -LRB102 11366 BMS 16699 b

1    commencing on January 1, 2026 that is designed to achieve
2    the cumulative persisting annual savings goals specified
3    in paragraphs (9) through (12) (13) of subsection (b-5) of
4    this Section or in paragraphs (9) through (12) (13) of
5    subsection (b-15) of this Section, as applicable, through
6    implementation of energy efficiency measures; however, the
7    goals may be reduced if either (1) clear and convincing
8    evidence demonstrates, through independent analysis, that
9    the expenditure limits in subsection (m) of this Section
10    preclude full achievement of the goals or (2) the
11    utility's expenditures are limited pursuant to subsection
12    (m) of this Section or, each of the following conditions
13    are met: (A) the plan's analysis and forecasts of the
14    utility's ability to acquire energy savings demonstrate by
15    clear and convincing evidence and through independent
16    analysis that achievement of such goals is not cost
17    effective; and (B) the amount of energy savings achieved
18    by the utility as determined by the independent evaluator
19    for the most recent year for which savings have been
20    evaluated preceding the plan filing was less than the
21    average annual amount of savings required to achieve the
22    goals for the applicable 4-year 5-year plan period. If
23    there is not clear and convincing evidence that achieving
24    the savings goals specified in paragraphs (b-5) or (b-15)
25    of this Section is possible both cost-effectively and
26    within the expenditure limits in subsection (m), such

 

 

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1    savings goals shall not be reduced. Except as provided in
2    subsection (m) of this Section, annual increases in
3    cumulative persisting annual savings goals during the
4    applicable 4-year 5-year plan period shall not be reduced
5    to amounts that are less than the maximum amount of
6    cumulative persisting annual savings that is forecast to
7    be cost-effectively achievable during the 4-year 5-year
8    plan period. The Commission shall review any proposed goal
9    reduction as part of its review and approval of the
10    utility's proposed plan.
11        (4) No later than March 1, 2029, and every 4 years
12    thereafter, each electric utility shall file a 4-year
13    energy efficiency plan commencing on January 1, 2030, and
14    every 4 years thereafter, respectively, that is designed
15    to achieve the cumulative persisting annual savings goals
16    established by the Illinois Commerce Commission pursuant
17    to direction of subsections (b-5) and (b-15) of this
18    Section, as applicable, through implementation of energy
19    efficiency measures; however, the goals may be reduced if
20    either (1) clear and convincing evidence and independent
21    analysis demonstrates that the expenditure limits in
22    subsection (m) of this Section preclude full achievement
23    of the goals or (2) each of the following conditions are
24    met: (A) the plan's analysis and forecasts of the
25    utility's ability to acquire energy savings demonstrate by
26    clear and convincing evidence and through independent

 

 

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1    analysis that achievement of such goals is not
2    cost-effective; and (B) the amount of energy savings
3    achieved by the utility as determined by the independent
4    evaluator for the most recent year for which savings have
5    been evaluated preceding the plan filing was less than the
6    average annual amount of savings required to achieve the
7    goals for the applicable 4-year plan period. If there is
8    not clear and convincing evidence that achieving the
9    savings goals specified in paragraphs (b-5) or (b-15) of
10    this Section is possible both cost-effectively and within
11    the expenditure limits in subsection (m), such savings
12    goals shall not be reduced. Except as provided in
13    subsection (m) of this Section, annual increases in
14    cumulative persisting annual savings goals during the
15    applicable 4-year plan period shall not be reduced to
16    amounts that are less than the maximum amount of
17    cumulative persisting annual savings that is forecast to
18    be cost-effectively achievable during the 4-year plan
19    period. The Commission shall review any proposed goal
20    reduction as part of its review and approval of the
21    utility's proposed plan.
22    Each utility's plan shall set forth the utility's
23proposals to meet the energy efficiency standards identified
24in subsection (b-5) or (b-15), as applicable and as such
25standards may have been modified under this subsection (f),
26taking into account the unique circumstances of the utility's

 

 

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1service territory. For those plans commencing on January 1,
22018, the Commission shall seek public comment on the
3utility's plan and shall issue an order approving or
4disapproving each plan no later than 105 days after June 1,
52017 (the effective date of Public Act 99-906). For those
6plans commencing after December 31, 2021, the Commission shall
7seek public comment on the utility's plan and shall issue an
8order approving or disapproving each plan within 6 months
9after its submission. If the Commission disapproves a plan,
10the Commission shall, within 30 days, describe in detail the
11reasons for the disapproval and describe a path by which the
12utility may file a revised draft of the plan to address the
13Commission's concerns satisfactorily. If the utility does not
14refile with the Commission within 60 days, the utility shall
15be subject to penalties at a rate of $100,000 per day until the
16plan is filed. This process shall continue, and penalties
17shall accrue, until the utility has successfully filed a
18portfolio of energy efficiency and demand-response measures.
19Penalties shall be deposited into the Energy Efficiency Trust
20Fund.
21    (g) In submitting proposed plans and funding levels under
22subsection (f) of this Section to meet the savings goals
23identified in subsection (b-5) or (b-15) of this Section, as
24applicable, the utility shall:
25        (1) Demonstrate that its proposed energy efficiency
26    measures will achieve the applicable requirements that are

 

 

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1    identified in subsection (b-5) or (b-15) of this Section,
2    as modified by subsection (f) of this Section.
3        (2) (Blank). Present specific proposals to implement
4    new building and appliance standards that have been placed
5    into effect.
6        (2.5) Demonstrate consideration of program options for
7    (A) advancing new building codes, appliance standards, and
8    municipal regulations governing existing and new building
9    efficiency improvements and (B) supporting efforts to
10    improve compliance with new building codes, appliance
11    standards and municipal regulations, as potentially
12    cost-effective means of acquiring energy savings to count
13    toward savings goals.
14        (3) Demonstrate that its overall portfolio of
15    measures, not including low-income programs described in
16    subsection (c) of this Section, is cost-effective using
17    the total resource cost test or complies with paragraphs
18    (1) through (3) of subsection (f) of this Section and
19    represents a diverse cross-section of opportunities for
20    customers of all rate classes, other than those customers
21    described in subsection (l) of this Section, to
22    participate in the programs. Individual measures need not
23    be cost effective.
24        (3.5) Demonstrate that the utility's plan integrates
25    the delivery of energy efficiency programs with natural
26    gas efficiency programs, programs promoting distributed

 

 

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1    solar, programs promoting demand response and other
2    efforts to address bill payment issues, including, but not
3    limited to, LIHEAP and the Percentage of Income Payment
4    Plan, to the extent such integration is practical and has
5    the potential to enhance customer engagement, minimize
6    market confusion, or reduce administrative costs.
7        (4) Present a third-party energy efficiency
8    implementation program subject to the following
9    requirements:
10            (A) beginning with the year commencing January 1,
11        2019, electric utilities that serve more than
12        3,000,000 retail customers in the State shall fund
13        third-party energy efficiency programs in an amount
14        that is no less than $25,000,000 per year, and
15        electric utilities that serve less than 3,000,000
16        retail customers but more than 500,000 retail
17        customers in the State shall fund third-party energy
18        efficiency programs in an amount that is no less than
19        $8,350,000 per year;
20            (B) during 2018, the utility shall conduct a
21        solicitation process for purposes of requesting
22        proposals from third-party vendors for those
23        third-party energy efficiency programs to be offered
24        during one or more of the years commencing January 1,
25        2019, January 1, 2020, and January 1, 2021; for those
26        multi-year plans commencing on January 1, 2022 and

 

 

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1        January 1, 2026, the utility shall conduct a
2        solicitation process during 2021 and 2025,
3        respectively, for purposes of requesting proposals
4        from third-party vendors for those third-party energy
5        efficiency programs to be offered during one or more
6        years of the respective multi-year plan period; for
7        each solicitation process, the utility shall identify
8        the sector, technology, or geographical area for which
9        it is seeking requests for proposals; the solicitation
10        process must be either for programs that fill gaps in
11        the utility's program portfolio and for programs that
12        target low-income customers, business sectors,
13        building types, geographies, or other specific parts
14        of its customer base with initiatives that would be
15        more effective at reaching these customer segments
16        than the utilities' programs filed in its energy
17        efficiency plans;
18            (C) the utility shall propose the bidder
19        qualifications, performance measurement process, and
20        contract structure, which must include a performance
21        payment mechanism and general terms and conditions;
22        the proposed qualifications, process, and structure
23        shall be subject to Commission approval; and
24            (D) the utility shall retain an independent third
25        party to score the proposals received through the
26        solicitation process described in this paragraph (4),

 

 

SB2408 Enrolled- 633 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 634 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 635 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 636 -LRB102 11366 BMS 16699 b

1                200 basis points are evenly apportioned among
2                each percentage point value between 100% and
3                125% achievement.
4            (B) For the period January 1, 2026 through
5        December 31, 2029 and in all subsequent 4-year periods
6        2030, provide for an adjustment to the return on
7        equity component of the utility's weighted average
8        cost of capital calculated under subsection (d) of
9        this Section:
10                (i) If the independent evaluator determines
11            that the utility achieved a cumulative persisting
12            annual savings that is less than the applicable
13            annual incremental goal, then the return on equity
14            component shall be reduced by a maximum of 200
15            basis points in the event that the utility
16            achieved no more than 66% of such goal. If the
17            utility achieved more than 66% of the applicable
18            annual incremental goal but less than 100% of such
19            goal, then the return on equity component shall be
20            reduced by 6 basis points for each percent by
21            which the utility failed to achieve the goal.
22                (ii) If the independent evaluator determines
23            that the utility achieved a cumulative persisting
24            annual savings that is more than the applicable
25            annual incremental goal, then the return on equity
26            component shall be increased by a maximum of 200

 

 

SB2408 Enrolled- 637 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 638 -LRB102 11366 BMS 16699 b

1                200 basis points are evenly apportioned among
2                each percentage point value between 100% and
3                134% achievement.
4            (C) Notwithstanding the provisions of
5        subparagraphs (A) and (B) of this paragraph (7), if
6        the applicable annual incremental goal for an electric
7        utility is ever less than 0.6% of deemed average
8        weather normalized sales of electric power and energy
9        during calendar years 2014, 2015, and 2016, an
10        adjustment to the return on equity component of the
11        utility's weighted average cost of capital calculated
12        under subsection (d) of this Section shall be made as
13        follows:
14                (i) If the independent evaluator determines
15            that the utility achieved a cumulative persisting
16            annual savings that is less than would have been
17            achieved had the applicable annual incremental
18            goal been achieved, then the return on equity
19            component shall be reduced by a maximum of 200
20            basis points if the utility achieved no more than
21            75% of its applicable annual total savings
22            requirement as defined in paragraph (7.5) of this
23            subsection. If the utility achieved more than 75%
24            of the applicable annual total savings requirement
25            but less than 100% of such goal, then the return on
26            equity component shall be reduced by 8 basis

 

 

SB2408 Enrolled- 639 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 640 -LRB102 11366 BMS 16699 b

1                    (bb) the calculation for determining
2                achievement that is less than 125% but more
3                than 100% of the applicable annual total
4                savings requirement shall use the reduced
5                applicable annual incremental goal to set the
6                value for 100% achievement of the goal and
7                shall use the unreduced goal to set the value
8                for 125% achievement. The 8 basis point value
9                shall also be modified, as necessary, so that
10                the 200 basis points are evenly apportioned
11                among each percentage point value between 100%
12                and 125% achievement.
13        (7.5) For purposes of this Section, the term
14    "applicable annual incremental goal" means the difference
15    between the cumulative persisting annual savings goal for
16    the calendar year that is the subject of the independent
17    evaluator's determination and the cumulative persisting
18    annual savings goal for the immediately preceding calendar
19    year, as such goals are defined in subsections (b-5) and
20    (b-15) of this Section and as these goals may have been
21    modified as provided for under subsection (b-20) and
22    paragraphs (1) through (3) of subsection (f) of this
23    Section. Under subsections (b), (b-5), (b-10), and (b-15)
24    of this Section, a utility must first replace energy
25    savings from measures that have expired reached the end of
26    their measure lives and would otherwise have to be

 

 

SB2408 Enrolled- 641 -LRB102 11366 BMS 16699 b

1    replaced to meet the applicable savings goals identified
2    in subsection (b-5) or (b-15) of this Section before any
3    progress towards achievement of its applicable annual
4    incremental goal may be counted. Savings may expire
5    because measures installed in previous years have reached
6    the end of their lives, because measures installed in
7    previous years are producing lower savings in the current
8    year than in the previous year, or for other reasons
9    identified by independent evaluators. Notwithstanding
10    anything else set forth in this Section, the difference
11    between the actual annual incremental savings achieved in
12    any given year, including the replacement of energy
13    savings from measures that have expired, and the
14    applicable annual incremental goal shall not affect
15    adjustments to the return on equity for subsequent
16    calendar years under this subsection (g).
17        In this Section, "applicable annual total savings
18    requirement" means the total amount of new annual savings
19    that the utility must achieve in any given year to achieve
20    the applicable annual incremental goal. This is equal to
21    the applicable annual incremental goal plus the total new
22    annual savings that are required to replace savings that
23    expired in or at the end of the previous year.
24        (8) For electric utilities that serve less than
25    3,000,000 retail customers but more than 500,000 retail
26    customers in the State:

 

 

SB2408 Enrolled- 642 -LRB102 11366 BMS 16699 b

1            (A) Through December 31, 2025, the applicable
2        annual incremental goal shall be compared to the
3        annual incremental savings as determined by the
4        independent evaluator.
5                (i) The return on equity component shall be
6            reduced by 8 basis points for each percent by
7            which the utility did not achieve 84.4% of the
8            applicable annual incremental goal.
9                (ii) The return on equity component shall be
10            increased by 8 basis points for each percent by
11            which the utility exceeded 100% of the applicable
12            annual incremental goal.
13                (iii) The return on equity component shall not
14            be increased or decreased if the annual
15            incremental savings as determined by the
16            independent evaluator is greater than 84.4% of the
17            applicable annual incremental goal and less than
18            100% of the applicable annual incremental goal.
19                (iv) The return on equity component shall not
20            be increased or decreased by an amount greater
21            than 200 basis points pursuant to this
22            subparagraph (A).
23            (B) For the period of January 1, 2026 through
24        December 31, 2029 and in all subsequent 4-year periods
25        2030, the applicable annual incremental goal shall be
26        compared to the annual incremental savings as

 

 

SB2408 Enrolled- 643 -LRB102 11366 BMS 16699 b

1        determined by the independent evaluator.
2                (i) The return on equity component shall be
3            reduced by 6 basis points for each percent by
4            which the utility did not achieve 100% of the
5            applicable annual incremental goal.
6                (ii) The return on equity component shall be
7            increased by 6 basis points for each percent by
8            which the utility exceeded 100% of the applicable
9            annual incremental goal.
10                (iii) The return on equity component shall not
11            be increased or decreased by an amount greater
12            than 200 basis points pursuant to this
13            subparagraph (B).
14            (C) Notwithstanding provisions in subparagraphs
15        (A) and (B) of paragraph (7) of this subsection, if the
16        applicable annual incremental goal for an electric
17        utility is ever less than 0.6% of deemed average
18        weather normalized sales of electric power and energy
19        during calendar years 2014, 2015 and 2016, an
20        adjustment to the return on equity component of the
21        utility's weighted average cost of capital calculated
22        under subsection (d) of this Section shall be made as
23        follows:
24                (i) The return on equity component shall be
25            reduced by 8 basis points for each percent by
26            which the utility did not achieve 100% of the

 

 

SB2408 Enrolled- 644 -LRB102 11366 BMS 16699 b

1            applicable annual total savings requirement.
2                (ii) The return on equity component shall be
3            increased by 8 basis points for each percent by
4            which the utility exceeded 100% of the applicable
5            annual total savings requirement.
6                (iii) The return on equity component shall not
7            be increased or decreased by an amount greater
8            than 200 basis points pursuant to this
9            subparagraph (C).
10            (D) (C) If the applicable annual incremental goal
11        was reduced under paragraph paragraphs (1), (2), or
12        (3), or (4) of subsection (f) of this Section, then the
13        following adjustments shall be made to the
14        calculations described in subparagraphs (A), and (B),
15        and (C) of this paragraph (8):
16                (i) The calculation for determining
17            achievement that is at least 125% or 134%, as
18            applicable, of the applicable annual incremental
19            goal or the applicable annual total savings
20            requirement, as applicable, shall use the
21            unreduced applicable annual incremental goal to
22            set the value.
23                (ii) For the period through December 31, 2025,
24            the calculation for determining achievement that
25            is less than 125% but more than 100% of the
26            applicable annual incremental goal or the

 

 

SB2408 Enrolled- 645 -LRB102 11366 BMS 16699 b

1            applicable annual total savings requirement, as
2            applicable, shall use the reduced applicable
3            annual incremental goal to set the value for 100%
4            achievement of the goal and shall use the
5            unreduced goal to set the value for 125%
6            achievement. The 8 basis point value shall also be
7            modified, as necessary, so that the 200 basis
8            points are evenly apportioned among each
9            percentage point value between 100% and 125%
10            achievement.
11                (iii) For the period of January 1, 2026
12            through December 31, 2029 and all subsequent
13            4-year periods, the calculation for determining
14            achievement that is less than 125% or 134%, as
15            applicable, but more than 100% of the applicable
16            annual incremental goal or the applicable annual
17            total savings requirement, as applicable, shall
18            use the reduced applicable annual incremental goal
19            to set the value for 100% achievement of the goal
20            and shall use the unreduced goal to set the value
21            for 125% achievement. The 6 basis-point value or 8
22            basis-point value, as applicable, shall also be
23            modified, as necessary, so that the 200 basis
24            points are evenly apportioned among each
25            percentage point value between 100% and 125% or
26            between 100% and 134% achievement, as applicable

 

 

SB2408 Enrolled- 646 -LRB102 11366 BMS 16699 b

1            2030, the calculation for determining achievement
2            that is less than 134% but more than 100% of the
3            applicable annual incremental goal shall use the
4            reduced applicable annual incremental goal to set
5            the value for 100% achievement of the goal and
6            shall use the unreduced goal to set the value for
7            125% achievement. The 6 basis point value shall
8            also be modified, as necessary, so that the 200
9            basis points are evenly apportioned among each
10            percentage point value between 100% and 134%
11            achievement.
12        (9) The utility shall submit the energy savings data
13    to the independent evaluator no later than 30 days after
14    the close of the plan year. The independent evaluator
15    shall determine the cumulative persisting annual savings
16    for a given plan year, as well as an estimate of job
17    impacts and other macroeconomic impacts of the efficiency
18    programs for that year, no later than 120 days after the
19    close of the plan year. The utility shall submit an
20    informational filing to the Commission no later than 160
21    days after the close of the plan year that attaches the
22    independent evaluator's final report identifying the
23    cumulative persisting annual savings for the year and
24    calculates, under paragraph (7) or (8) of this subsection
25    (g), as applicable, any resulting change to the utility's
26    return on equity component of the weighted average cost of

 

 

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1    capital applicable to the next plan year beginning with
2    the January monthly billing period and extending through
3    the December monthly billing period. However, if the
4    utility recovers the costs incurred under this Section
5    under paragraphs (2) and (3) of subsection (d) of this
6    Section, then the utility shall not be required to submit
7    such informational filing, and shall instead submit the
8    information that would otherwise be included in the
9    informational filing as part of its filing under paragraph
10    (3) of such subsection (d) that is due on or before June 1
11    of each year.
12        For those utilities that must submit the informational
13    filing, the Commission may, on its own motion or by
14    petition, initiate an investigation of such filing,
15    provided, however, that the utility's proposed return on
16    equity calculation shall be deemed the final, approved
17    calculation on December 15 of the year in which it is filed
18    unless the Commission enters an order on or before
19    December 15, after notice and hearing, that modifies such
20    calculation consistent with this Section.
21        The adjustments to the return on equity component
22    described in paragraphs (7) and (8) of this subsection (g)
23    shall be applied as described in such paragraphs through a
24    separate tariff mechanism, which shall be filed by the
25    utility under subsections (f) and (g) of this Section.
26        (9.5) The utility must demonstrate how it will ensure

 

 

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1    that program implementation contractors and energy
2    efficiency installation vendors will promote workforce
3    equity and quality jobs.
4        (9.6) Utilities shall collect data necessary to ensure
5    compliance with paragraph (9.5) no less than quarterly and
6    shall communicate progress toward compliance with
7    paragraph (9.5) to program implementation contractors and
8    energy efficiency installation vendors no less than
9    quarterly. Utilities shall work with relevant vendors,
10    providing education, training, and other resources needed
11    to ensure compliance and, where necessary, adjusting or
12    terminating work with vendors that cannot assist with
13    compliance.
14        (10) Utilities required to implement efficiency
15    programs under subsections (b-5) and (b-10) shall report
16    annually to the Illinois Commerce Commission and the
17    General Assembly on how hiring, contracting, job training,
18    and other practices related to its energy efficiency
19    programs enhance the diversity of vendors working on such
20    programs. These reports must include data on vendor and
21    employee diversity, including data on the implementation
22    of paragraphs (9.5) and (9.6). If the utility is not
23    meeting the requirements of paragraphs (9.5) and (9.6),
24    the utility shall submit a plan to adjust their activities
25    so that they meet the requirements of paragraphs (9.5) and
26    (9.6) within the following year.

 

 

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1    (h) No more than 4% 6% of energy efficiency and
2demand-response program revenue may be allocated for research,
3development, or pilot deployment of new equipment or measures.
4Electric utilities shall work with interested stakeholders to
5formulate a plan for how these funds should be spent,
6incorporate statewide approaches for these allocations, and
7file a 4-year plan that demonstrates that collaboration. If a
8utility files a request for modified annual energy savings
9goals with the Commission, then a utility shall forgo spending
10portfolio dollars on research and development proposals.
11    (i) When practicable, electric utilities shall incorporate
12advanced metering infrastructure data into the planning,
13implementation, and evaluation of energy efficiency measures
14and programs, subject to the data privacy and confidentiality
15protections of applicable law.
16    (j) The independent evaluator shall follow the guidelines
17and use the savings set forth in Commission-approved energy
18efficiency policy manuals and technical reference manuals, as
19each may be updated from time to time. Until such time as
20measure life values for energy efficiency measures implemented
21for low-income households under subsection (c) of this Section
22are incorporated into such Commission-approved manuals, the
23low-income measures shall have the same measure life values
24that are established for same measures implemented in
25households that are not low-income households.
26    (k) Notwithstanding any provision of law to the contrary,

 

 

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1an electric utility subject to the requirements of this
2Section may file a tariff cancelling an automatic adjustment
3clause tariff in effect under this Section or Section 8-103,
4which shall take effect no later than one business day after
5the date such tariff is filed. Thereafter, the utility shall
6be authorized to defer and recover its expenditures incurred
7under this Section through a new tariff authorized under
8subsection (d) of this Section or in the utility's next rate
9case under Article IX or Section 16-108.5 of this Act, with
10interest at an annual rate equal to the utility's weighted
11average cost of capital as approved by the Commission in such
12case. If the utility elects to file a new tariff under
13subsection (d) of this Section, the utility may file the
14tariff within 10 days after June 1, 2017 (the effective date of
15Public Act 99-906), and the cost inputs to such tariff shall be
16based on the projected costs to be incurred by the utility
17during the calendar year in which the new tariff is filed and
18that were not recovered under the tariff that was cancelled as
19provided for in this subsection. Such costs shall include
20those incurred or to be incurred by the utility under its
21multi-year plan approved under subsections (f) and (g) of this
22Section, including, but not limited to, projected capital
23investment costs and projected regulatory asset balances with
24correspondingly updated depreciation and amortization reserves
25and expense. The Commission shall, after notice and hearing,
26approve, or approve with modification, such tariff and cost

 

 

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1inputs no later than 75 days after the utility filed the
2tariff, provided that such approval, or approval with
3modification, shall be consistent with the provisions of this
4Section to the extent they do not conflict with this
5subsection (k). The tariff approved by the Commission shall
6take effect no later than 5 days after the Commission enters
7its order approving the tariff.
8    No later than 60 days after the effective date of the
9tariff cancelling the utility's automatic adjustment clause
10tariff, the utility shall file a reconciliation that
11reconciles the moneys collected under its automatic adjustment
12clause tariff with the costs incurred during the period
13beginning June 1, 2016 and ending on the date that the electric
14utility's automatic adjustment clause tariff was cancelled. In
15the event the reconciliation reflects an under-collection, the
16utility shall recover the costs as specified in this
17subsection (k). If the reconciliation reflects an
18over-collection, the utility shall apply the amount of such
19over-collection as a one-time credit to retail customers'
20bills.
21    (l) For the calendar years covered by a multi-year plan
22commencing after December 31, 2017, subsections (a) through
23(j) of this Section do not apply to eligible large private
24energy customers that have chosen to opt out of multi-year
25plans consistent with this subsection (1).
26        (1) For purposes of this subsection (l), "eligible

 

 

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1    large private energy customer" means any retail customers,
2    except for federal, State, municipal, and other public
3    customers, of an electric utility that serves more than
4    3,000,000 retail customers, except for federal, State,
5    municipal and other public customers, in the State and
6    whose total highest 30 minute demand was more than 10,000
7    kilowatts, or any retail customers of an electric utility
8    that serves less than 3,000,000 retail customers but more
9    than 500,000 retail customers in the State and whose total
10    highest 15 minute demand was more than 10,000 kilowatts.
11    For purposes of this subsection (l), "retail customer" has
12    the meaning set forth in Section 16-102 of this Act.
13    However, for a business entity with multiple sites located
14    in the State, where at least one of those sites qualifies
15    as an eligible large private energy customer, then any of
16    that business entity's sites, properly identified on a
17    form for notice, shall be considered eligible large
18    private energy customers for the purposes of this
19    subsection (l). A determination of whether this subsection
20    is applicable to a customer shall be made for each
21    multi-year plan beginning after December 31, 2017. The
22    criteria for determining whether this subsection (l) is
23    applicable to a retail customer shall be based on the 12
24    consecutive billing periods prior to the start of the
25    first year of each such multi-year plan.
26        (2) Within 45 days after the effective date of this

 

 

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1    amendatory Act of the 102nd General Assembly, the
2    Commission shall prescribe the form for notice required
3    for opting out of energy efficiency programs. The notice
4    must be submitted to the retail electric utility 12 months
5    before the next energy efficiency planning cycle. However,
6    within 120 days after the Commission's initial issuance of
7    the form for notice, eligible large private energy
8    customers may submit a form for notice to an electric
9    utility. The form for notice for opting out of energy
10    efficiency programs shall include all of the following:
11            (A) a statement indicating that the customer has
12        elected to opt out;
13            (B) the account numbers for the customer accounts
14        to which the opt out shall apply;
15            (C) the mailing address associated with the
16        customer accounts identified under subparagraph (B);
17            (D) an American Society of Heating, Refrigerating,
18        and Air-Conditioning Engineers (ASHRAE) level 2 or
19        higher audit report conducted by an independent
20        third-party expert identifying cost-effective energy
21        efficiency project opportunities that could be
22        invested in over the next 10 years. A retail customer
23        with specialized processes may utilize a self-audit
24        process in lieu of the ASHRAE audit;
25            (E) a description of the customer's plans to
26        reallocate the funds toward internal energy efficiency

 

 

SB2408 Enrolled- 654 -LRB102 11366 BMS 16699 b

1        efforts identified in the subparagraph (D) report,
2        including, but not limited to: (i) strategic energy
3        management or other programs, including descriptions
4        of targeted buildings, equipment and operations; (ii)
5        eligible energy efficiency measures; and (iii)
6        expected energy savings, itemized by technology. If
7        the subparagraph (D) audit report identifies that the
8        customer currently utilizes the best available energy
9        efficient technology, equipment, programs, and
10        operations, the customer may provide a statement that
11        more efficient technology, equipment, programs, and
12        operations are not reasonably available as a means of
13        satisfying this subparagraph (E); and
14            (F) the effective date of the opt out, which will
15        be the next January 1 following notice of the opt out.
16        (3) Upon receipt of a properly and timely noticed
17    request for opt out submitted by an eligible large private
18    energy customer, the retail electric utility shall grant
19    the request, file the request with the Commission and,
20    beginning January 1 of the following year, the opted out
21    customer shall no longer be assessed the costs of the plan
22    and shall be prohibited from participating in that 4-year
23    plan cycle to give the retail utility the certainty to
24    design program plan proposals.
25        (4) Upon a customer's election to opt out under
26    paragraphs (1) and (2) of this subsection (l) and

 

 

SB2408 Enrolled- 655 -LRB102 11366 BMS 16699 b

1    commencing on the effective date of said opt out, the
2    account properly identified in the customer's notice under
3    paragraph (2) shall not be subject to any cost recovery
4    and shall not be eligible to participate in, or directly
5    benefit from, compliance with energy efficiency cumulative
6    persisting savings requirements under subsections (a)
7    through (j).
8        (5) A utility's cumulative persisting annual savings
9    targets will exclude any opted out load.
10        (6) The request to opt out is only valid for the
11    requested plan cycle. An eligible large private energy
12    customer must also request to opt out for future energy
13    plan cycles, otherwise the customer will be included in
14    the future energy plan cycle. For the calendar years
15    covered by a multi-year plan commencing after December 31,
16    2017, subsections (a) through (j) of this Section do not
17    apply to any retail customers of an electric utility that
18    serves more than 3,000,000 retail customers in the State
19    and whose total highest 30 minute demand was more than
20    10,000 kilowatts, or any retail customers of an electric
21    utility that serves less than 3,000,000 retail customers
22    but more than 500,000 retail customers in the State and
23    whose total highest 15 minute demand was more than 10,000
24    kilowatts. For purposes of this subsection (l), "retail
25    customer" has the meaning set forth in Section 16-102 of
26    this Act. A determination of whether this subsection is

 

 

SB2408 Enrolled- 656 -LRB102 11366 BMS 16699 b

1    applicable to a customer shall be made for each multi-year
2    plan beginning after December 31, 2017. The criteria for
3    determining whether this subsection (l) is applicable to a
4    retail customer shall be based on the 12 consecutive
5    billing periods prior to the start of the first year of
6    each such multi-year plan.
7    (m) Notwithstanding the requirements of this Section, as
8part of a proceeding to approve a multi-year plan under
9subsections (f) and (g) of this Section if the multi-year plan
10has been designed to maximize savings, but does not meet the
11cost cap limitations of this Section, the Commission shall
12reduce the amount of energy efficiency measures implemented
13for any single year, and whose costs are recovered under
14subsection (d) of this Section, by an amount necessary to
15limit the estimated average net increase due to the cost of the
16measures to no more than
17        (1) 3.5% for each of the 4 years beginning January 1,
18    2018,
19        (2) (blank), 3.75% for each of the 4 years beginning
20    January 1, 2022, and
21        (3) 4% for each of the 4 5 years beginning January 1,
22    2022 2026,
23        (4) 4.25% for the 4 years beginning January 1, 2026,
24    and
25        (5) 4.25% plus an increase sufficient to account for
26    the rate of inflation between January 1, 2026 and January

 

 

SB2408 Enrolled- 657 -LRB102 11366 BMS 16699 b

1    1 of the first year of each subsequent 4-year plan cycle,
2of the average amount paid per kilowatthour by residential
3eligible retail customers during calendar year 2015. An
4electric utility may plan to spend up to 10% more in any year
5during an applicable multi-year plan period to
6cost-effectively achieve additional savings so long as the
7average over the applicable multi-year plan period does not
8exceed the percentages defined in items (1) through (5). To
9determine the total amount that may be spent by an electric
10utility in any single year, the applicable percentage of the
11average amount paid per kilowatthour shall be multiplied by
12the total amount of energy delivered by such electric utility
13in the calendar year 2015, adjusted to reflect the proportion
14of the utility's load attributable to customers that have
15opted out of who are exempt from subsections (a) through (j) of
16this Section under subsection (l) of this Section. For
17purposes of this subsection (m), the amount paid per
18kilowatthour includes, without limitation, estimated amounts
19paid for supply, transmission, distribution, surcharges, and
20add-on taxes. For purposes of this Section, "eligible retail
21customers" shall have the meaning set forth in Section
2216-111.5 of this Act. Once the Commission has approved a plan
23under subsections (f) and (g) of this Section, no subsequent
24rate impact determinations shall be made.
25    (n) A utility shall take advantage of the efficiencies
26available through existing Illinois Home Weatherization

 

 

SB2408 Enrolled- 658 -LRB102 11366 BMS 16699 b

1Assistance Program infrastructure and services, such as
2enrollment, marketing, quality assurance and implementation,
3which can reduce the need for similar services at a lower cost
4than utility-only programs, subject to capacity constraints at
5community action agencies, for both single-family and
6multifamily weatherization services, to the extent Illinois
7Home Weatherization Assistance Program community action
8agencies provide multifamily services. A utility's plan shall
9demonstrate that in formulating annual weatherization budgets,
10it has sought input and coordination with community action
11agencies regarding agencies' capacity to expand and maximize
12Illinois Home Weatherization Assistance Program delivery using
13the ratepayer dollars collected under this Section.
14(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.)
 
15    (220 ILCS 5/8-201.7 new)
16    Sec. 8-201.7. Prohibition on deposits for low-income
17residential customers or applicants.
18    (a) On and after the effective date of this amendatory Act
19of the 102nd General Assembly, no electric or gas utility
20shall, as a condition for standard service, require a
21low-income residential customer or applicant to provide a
22deposit as security against potential non-payment for service
23except when the utility has proof that the customer engaged in
24tampering of the electric or gas utility equipment during the
25previous 5 years. Within 60 days after the effective date of

 

 

SB2408 Enrolled- 659 -LRB102 11366 BMS 16699 b

1this amendatory Act of the 102nd General Assembly, such
2utility shall refund all deposits collected from low-income
3customers as security against potential nonpayment for
4standard service to such residential customers except when the
5utility has proof that the customer benefited from tampering.
6Proof that the customer for whom the deposit is being required
7engaged in tampering shall be the burden of the utility and the
8utility shall provide the customer the opportunity to contest
9the finding that the customer engaged in tampering.
10    (b) As used in this Section:
11    "Low-income residential customer or applicant" means: (i)
12a member of a household at or below 80% of the latest median
13household income as reported by the United States Census
14Bureau for the most applicable community or county; (ii) a
15member of a household at or below 150% of the federal poverty
16level; (iii) a person who is eligible for the Illinois Low
17Income Home Energy Assistance Program (LIHEAP) as defined in
18the Energy Assistance Act; (iv) a person who is eligible to
19participate in the Percentage of Income Payment Plan (PIPP or
20PIP Plan) as defined in the Energy Assistance Act; or (v) a
21person who is eligible to receive Lifeline service as defined
22in the Universal Service Telephone Service Protection Law of
231985.
24    "Tampering" means any unauthorized alteration of electric
25or gas utility equipment or facilities by which a benefit is
26achieved for which the utility is not compensated, including

 

 

SB2408 Enrolled- 660 -LRB102 11366 BMS 16699 b

1customer self-restoration of utility service.
 
2    (220 ILCS 5/8-201.8 new)
3    Sec. 8-201.8. Prohibition on late payment fees for
4low-income residential customers or applicants.
5    (a) Notwithstanding any other provision of this Act, as of
6the effective date of this amendatory Act of the 102nd General
7Assembly, an electric utility shall not charge a low-income
8residential customer or applicant a fee, charge, or penalty
9for late payment of any utility bill or invoice.
10Notwithstanding any other provision of this Act, as of January
111, 2023, a natural gas utility shall not charge a low-income
12residential customer or applicant a fee, charge, or penalty
13for late payment of any utility bill or invoice.
14    (b) As used in this Section, "low-income residential
15customer or applicant" means: (i) a member of a household at or
16below 80% of the latest median household income as reported by
17the United States Census Bureau for the most applicable
18community or county; (ii) a member of a household at or below
19150% of the federal poverty level; (iii) a person who is
20eligible for the Illinois Low Income Home Energy Assistance
21Program (LIHEAP) as defined in the Energy Assistance Act; (iv)
22a person who is eligible to participate in the Percentage of
23Income Payment Plan (PIPP or PIP Plan) as defined in the Energy
24Assistance Act; or (v) a person who is eligible to receive
25Lifeline service as defined in the Universal Service Telephone

 

 

SB2408 Enrolled- 661 -LRB102 11366 BMS 16699 b

1Service Protection Law of 1985.
 
2    (220 ILCS 5/8-201.9 new)
3    Sec. 8-201.9. Prohibition on credit card convenience fees.
4    (a) No electric or natural gas utility shall assess any
5convenience fee, surcharge, or other fee to any customer who
6elects to pay for service using a credit card that the electric
7or natural gas utility would not assess to the customer if the
8customer paid by other available methods acceptable to the
9utility. The Commission may consider as an operating expense,
10for the purpose of determining whether a rate or other charge
11or classification is sufficient, costs incurred by a utility
12to process payments described in this Section so long as those
13costs are determined to be prudent, just, and reasonable.
14    (b) As used in this Section, "credit card" means an
15instrument or device, whether known as a credit card, bank
16card, charge card, debit card, automated teller machine card,
17secured credit card, smart card, electronic purse, prepaid
18card, affinity card, or by any other name, issued with or
19without fee by an issuer for the use of the holder to obtain
20credit, money, goods, services, or anything else of value.
 
21    (220 ILCS 5/8-201.10 new)
22    Sec. 8-201.10. Disconnection and credit and collections
23reporting.
24    (a) The Commission shall require all gas, electric, water

 

 

SB2408 Enrolled- 662 -LRB102 11366 BMS 16699 b

1and sewer public utilities under its authority to submit an
2annual report by May 1, 2022 and every May 1 thereafter,
3reporting and making publicly available in executable,
4electronic spreadsheet format, by zip code, on the number of
5disconnections for nonpayment and reconnections that occurred
6in the immediately preceding calendar year, as identified in
7subsection (b).
8    (b) Each such public utility shall report to the
9Commission by the 15th day of each month and make publicly
10available in executable, electronic spreadsheet format the
11following information, by zip code, for the immediately
12preceding month:
13        (1) the number of customers, by customer class and
14    type of utility service provided, during each month;
15        (2) the number of customers, by customer class and
16    type of utility service, receiving disconnection notices
17    during each month;
18        (3) the number of customers, by customer class and
19    type of utility service, disconnected for nonpayment
20    during each month;
21        (4) the number of customers, by customer class and
22    type of utility service, reconnected because they have
23    paid in full or set up payment arrangements during each
24    month;
25        (5) the number of new deferred payment agreements, by
26    customer class and type of utility service, each month;

 

 

SB2408 Enrolled- 663 -LRB102 11366 BMS 16699 b

1        (6) the number of customers, by customer class and
2    type of utility service, taking service at the beginning
3    of the month under existing deferred payment arrangements;
4        (7) the number of customers, by customer class and
5    type of utility service, completing deferred payment
6    arrangements during the month;
7        (8) the number of payment agreements, by customer
8    class and type of utility service, that failed during each
9    month;
10        (9) the number of customers, by customer class and
11    type of utility service, renegotiating deferred payment
12    arrangements during the month;
13        (10) the number of customers, by customer class and
14    type of utility service, assessed late payment fees or
15    charges during the month;
16        (11) the number of customers, by customer class and
17    type of utility service, taking service at the beginning
18    of the month under existing medical payment arrangements;
19        (12) the number of customers, by utility service,
20    completing medical payment arrangements during the month;
21        (13) the number of customers, by utility service,
22    enrolling in new medical payment arrangements during the
23    month;
24        (14) the number of customers, by utility service,
25    renegotiating medical payment arrangements plans during
26    the month;

 

 

SB2408 Enrolled- 664 -LRB102 11366 BMS 16699 b

1        (15) the number of customers, by customer class and
2    utility service, with required deposits with the company
3    at the beginning of the month;
4        (16) the number of customers, by customer class and
5    utility service, required to submit new deposits or
6    increased deposits during the month;
7        (17) the number of customers, by customer class and
8    utility service, whose required deposits were reduced in
9    part or forgone during the month;
10        (18) the number of customers, by customer class and
11    utility service, whose deposits were returned in full
12    during the month;
13        (19) the number of customers, by customer class and
14    utility service, with past due amounts greater than 30
15    days past due at the beginning of the month and taking
16    service at the beginning of the month under existing
17    deferred payment arrangements;
18        (20) the dollar volume of past due accounts, by
19    customer class and utility service, for customers with
20    past due amounts greater than 30 days past due at the
21    beginning of the month and taking service at the beginning
22    of the month under existing deferred payment arrangements;
23        (21) the number of customers, by customer class and
24    utility service, with past due amounts greater than 30
25    days past due at the beginning of the month and not taking
26    service at the beginning of the month under existing

 

 

SB2408 Enrolled- 665 -LRB102 11366 BMS 16699 b

1    deferred payment arrangements; and
2        (22) the dollar volume of past due accounts, by
3    customer class and utility service, for customers with
4    past due amounts greater than 30 days past due at the
5    beginning of the month and not taking service at the
6    beginning of the month under existing deferred payment
7    arrangements.
8    (c) The Commission may specify the executable, electronic
9spreadsheet format that utilities must adhere to when
10submitting the information required by this Section.
11Notwithstanding the requirements of this Section, the
12Commission may establish an online reporting system and
13require each public utility to report using the online
14reporting system instead of filing information in executable,
15electronic spreadsheet format. The Commission shall make each
16monthly report submitted by each public utility publicly
17available on its website within 30 days of receipt.
 
18    (220 ILCS 5/8-218 new)
19    Sec. 8-218. Utility-scale pilot projects.
20    (a) Electric utilities serving greater than 500,000
21customers but less than 3,000,000 customers may propose, plan
22for, construct, install, control, own, manage, or operate up
23to 2 pilot projects consisting of utility-scale photovoltaic
24energy generation facilities. Energy storage facilities that
25are planned for, constructed, installed, controlled, owned,

 

 

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1managed, or operated may be constructed in connection with the
2photovoltaic electricity generation pilot projects.
3    (b) Pilot projects shall be sited in equity investment
4eligible communities in or near the towns of Peoria and East
5St. Louis and must result in economic benefits for the members
6of the communities in which the project will be located. The
7amount paid per pilot project with or without energy storage
8facilities cannot exceed $20,000,000. The electric utility's
9costs of planning for, constructing, installing, controlling,
10owning, managing, or operating the photovoltaic electricity
11generation facilities and energy storage facilities may be
12recovered, on a kilowatt hour basis, via an automatic
13adjustment clause tariff applicable to all retail customers,
14with the tariff to be approved by the Commission after
15opportunity for review, and with an annual reconciliation
16component; and for purposes of cost recovery, the photovoltaic
17electricity production facilities may be treated as regulatory
18assets, using the same ratemaking treatment in paragraph (1)
19of subsection (h) of Section 16-107.6 of this Act, provided:
20(1) the Commission shall have the authority to determine the
21reasonableness of the costs of the facilities, and (2) any
22monetary value of power and energy from the facilities shall
23be credited against the delivery services revenue requirement.
24    (c) Any electric utility seeking to propose, plan for,
25construct, install, control, own, manage, or operate a pilot
26project pursuant to this Section must commit to using a

 

 

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1diverse and equitable workforce and a diverse set of
2contractors, including minority-owned businesses,
3disadvantaged businesses, trade unions, graduates of any
4workforce training programs established by this amendatory Act
5of the 102nd General Assembly, and small businesses. An
6electric utility must comply with the equity commitment
7requirements in subsection (c-10) of Section 1-75 of the
8Illinois Power Agency Act. The electric utility must certify
9that not less than the prevailing wage will be paid to
10employees engaged in construction activities associated with
11the pilot project. The electric utility must file a project
12labor agreement, as defined in the Illinois Power Agency Act,
13with the Commission prior to constructing, installing,
14controlling, or owning a pilot project authorized by this
15Section.
 
16    (220 ILCS 5/8-402.2 new)
17    Sec. 8-402.2. Public Schools Carbon-Free Assessment
18programs.
19    (a) Within one year after the effective date of this
20amendatory Act of the 102nd General Assembly, each electric
21utility serving over 500,000 retail customers in this State
22shall implement a Public Schools Carbon-Free Assessment
23program.
24    (b) Each utility's Public Schools Carbon-Free Assessment
25program shall include the following requirements:

 

 

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1        (1) Each plan shall be designed to offer within the
2    utility's service territory to assist public schools, as
3    defined by Section 1-3 of the School Code, to increase the
4    efficiency of their energy usage, to reduce the carbon
5    emissions associated with their energy usage, and to move
6    toward a goal of public schools being carbon-free in their
7    energy usage by 2030. The program shall include a target
8    of completing Public Schools Carbon-Free Assessment for
9    all public schools in the utility's service territory by
10    December 31, 2029.
11        (2) The Public Schools Carbon-Free Assessment shall be
12    a generally standardized assessment, but may incorporate
13    flexibility to reflect the circumstances of individual
14    public schools and public school districts.
15        (3) The Public Schools Carbon-Free Assessment shall
16    include, but not be limited to, comprehensive analyses of
17    the following subjects:
18            (A) The top energy efficiency savings
19        opportunities for the public school, by energy saved;
20            (B) The total achievable solar energy potential on
21        or nearby a public school's premises and able to
22        provide power to a school;
23            (C) The infrastructure required to support
24        electrification of the facility's space heating and
25        water heating needs;
26            (D) The infrastructure requirements to support

 

 

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1        electrification of a school's transportation needs;
2        and
3            (E) The investments required to achieve a WELL
4        Certification or similar certification as determined
5        through methods developed and updated by the
6        International WELL Building Institute or similar or
7        successor organizations.
8        (4) The Public Schools Carbon-Free Assessment also
9    shall include, but not be limited to, mechanical
10    insulation evaluation inspection and inspection of the
11    building envelope(s).
12        (5) With respect to those public school construction
13    projects for public schools within the service territory
14    of a utility serving over 500,000 retail customers in this
15    State and for which a public school district applies for a
16    grant under Section 5-40 of the School Construction Law on
17    or after June 1, 2023, the district must submit a copy of
18    the applicable Public Schools Carbon-Free Assessment
19    report, or, if no such Public Schools Carbon-Free
20    Assessment has been performed, request the applicable
21    utility to perform such a Public Schools Carbon-Free
22    Assessment and submit a copy of the Public Schools
23    Carbon-Free Assessment report promptly when it becomes
24    available. The Public Schools Carbon-Free Assessment
25    report shall include, but not limited to, an energy audit
26    of both the building envelope and the building's

 

 

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1    mechanical insulation system. It shall also include an
2    inspection of both the building envelope and the
3    mechanical insulation system. The district must
4    demonstrate how the construction project is designed and
5    managed to achieve the goals that all public elementary
6    and secondary school facilities in the State are able to
7    be powered by clean energy by 2030, and for such
8    facilities to achieve carbon-free energy sources for space
9    heat, water heat, and transportation by 2050.
10        (6) The results of each Public Schools Carbon-Free
11    Assessment shall be memorialized by the utility or by a
12    third party acting on behalf of the utility in a usable
13    report form and shall be provided to the applicable public
14    school. Each utility shall be required to retain a copy of
15    each Public Schools Carbon-Free Assessment report and to
16    provide confidential copies of each report to the Illinois
17    Power Agency and the Illinois Capital Development Board
18    within 3 months of its completion.
19        (7) The Public Schools Carbon-Free Assessment shall be
20    conducted in coordination with each utility's energy
21    efficiency and demand-response plans under Sections 8-103,
22    8-103A, and 8-103B of this Act, to the extent applicable.
23    Nothing in this Section is intended to modify or require
24    modification of those plans. However, the utility may
25    request a modification of a plan approved by the
26    Commission, and the Commission may approve the requested

 

 

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1    modification, if the modification is consistent with the
2    provisions of this Section and Section 8-103B of this Act.
3        (8) If there are no other providers of assessments
4    that are substantively the same as those being performed
5    by utilities pursuant to this Section by 2024, a utility
6    that has a Public Schools Carbon-Free Assessment program
7    may offer assessments to public schools that are not
8    served by a utility subject to this Section at the
9    utility's cost.
10        (9) The Public Schools Carbon-Free Assessment shall be
11    offered to and performed for public schools in the
12    utility's service territory on a complimentary basis by
13    each utility, with no Assessment fee charged to the public
14    schools for the Assessments. Nothing in this Section is
15    intended to prohibit the utility from recovering through
16    rates approved by the Commission the utility's prudent and
17    reasonable costs of complying with this Section.
18        (10) Utilities shall make efforts to prioritize the
19    completion of Public Schools Carbon-Free Assessments for
20    the following school districts by December 31, 2022: East
21    St. Louis School District 189, Harvey School District 152,
22    Thornton Township High School District 205.
 
23    (220 ILCS 5/8-406)  (from Ch. 111 2/3, par. 8-406)
24    Sec. 8-406. Certificate of public convenience and
25necessity.

 

 

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1    (a) No public utility not owning any city or village
2franchise nor engaged in performing any public service or in
3furnishing any product or commodity within this State as of
4July 1, 1921 and not possessing a certificate of public
5convenience and necessity from the Illinois Commerce
6Commission, the State Public Utilities Commission or the
7Public Utilities Commission, at the time this amendatory Act
8of 1985 goes into effect, shall transact any business in this
9State until it shall have obtained a certificate from the
10Commission that public convenience and necessity require the
11transaction of such business.
12    (b) No public utility shall begin the construction of any
13new plant, equipment, property or facility which is not in
14substitution of any existing plant, equipment, property or
15facility or any extension or alteration thereof or in addition
16thereto, unless and until it shall have obtained from the
17Commission a certificate that public convenience and necessity
18require such construction. Whenever after a hearing the
19Commission determines that any new construction or the
20transaction of any business by a public utility will promote
21the public convenience and is necessary thereto, it shall have
22the power to issue certificates of public convenience and
23necessity. The Commission shall determine that proposed
24construction will promote the public convenience and necessity
25only if the utility demonstrates: (1) that the proposed
26construction is necessary to provide adequate, reliable, and

 

 

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1efficient service to its customers and is the least-cost means
2of satisfying the service needs of its customers or that the
3proposed construction will promote the development of an
4effectively competitive electricity market that operates
5efficiently, is equitable to all customers, and is the least
6cost means of satisfying those objectives; (2) that the
7utility is capable of efficiently managing and supervising the
8construction process and has taken sufficient action to ensure
9adequate and efficient construction and supervision thereof;
10and (3) that the utility is capable of financing the proposed
11construction without significant adverse financial
12consequences for the utility or its customers.
13    (b-5) As used in this subsection (b-5):
14    "Qualifying direct current applicant" means an entity that
15seeks to provide direct current bulk transmission service for
16the purpose of transporting electric energy in interstate
17commerce.
18    "Qualifying direct current project" means a high voltage
19direct current electric service line that crosses at least one
20Illinois border, the Illinois portion of which is physically
21located within the region of the Midcontinent Independent
22System Operator, Inc., or its successor organization, and runs
23through the counties of Pike, Scott, Greene, Macoupin,
24Montgomery, Christian, Shelby, Cumberland, and Clark, is
25capable of transmitting electricity at voltages of 345kv or
26above, and may also include associated interconnected

 

 

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1alternating current interconnection facilities in this State
2that are part of the proposed project and reasonably necessary
3to connect the project with other portions of the grid.
4    Notwithstanding any other provision of this Act, a
5qualifying direct current applicant that does not own,
6control, operate, or manage, within this State, any plant,
7equipment, or property used or to be used for the transmission
8of electricity at the time of its application or of the
9Commission's order may file an application on or before
10December 31, 2023 with the Commission pursuant to this Section
11or Section 8-406.1 for, and the Commission may grant, a
12certificate of public convenience and necessity to construct,
13operate, and maintain a qualifying direct current project. The
14qualifying direct current applicant may also include in the
15application requests for authority under Section 8-503. The
16Commission shall grant the application for a certificate of
17public convenience and necessity and requests for authority
18under Section 8-503 if it finds that the qualifying direct
19current applicant and the proposed qualifying direct current
20project satisfy the requirements of this subsection and
21otherwise satisfy the criteria of this Section or Section
228-406.1 and the criteria of Section 8-503, as applicable to
23the application and to the extent such criteria are not
24superseded by the provisions of this subsection. The
25Commission's order on the application for the certificate of
26public convenience and necessity shall also include the

 

 

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1Commission's findings and determinations on the request or
2requests for authority pursuant to Section 8-503. Prior to
3filing its application under either this Section or Section
48-406.1, the qualifying direct current applicant shall conduct
53 public meetings in accordance with subsection (h) of this
6Section. If the qualifying direct current applicant
7demonstrates in its application that the proposed qualifying
8direct current project is designed to deliver electricity to a
9point or points on the electric transmission grid in either or
10both the PJM Interconnection, LLC or the Midcontinent
11Independent System Operator, Inc., or their respective
12successor organizations, the proposed qualifying direct
13current project shall be deemed to be, and the Commission
14shall find it to be, for public use. If the qualifying direct
15current applicant further demonstrates in its application that
16the proposed transmission project has a capacity of 1,000
17megawatts or larger and a voltage level of 345 kilovolts or
18greater, the proposed transmission project shall be deemed to
19satisfy, and the Commission shall find that it satisfies, the
20criteria stated in item (1) of subsection (b) of this Section
21or in paragraph (1) of subsection (f) of Section 8-406.1, as
22applicable to the application, without the taking of
23additional evidence on these criteria. Prior to the transfer
24of functional control of any transmission assets to a regional
25transmission organization, a qualifying direct current
26applicant shall request Commission approval to join a regional

 

 

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1transmission organization in an application filed pursuant to
2this subsection (b-5) or separately pursuant to Section 7-102
3of this Act. The Commission may grant permission to a
4qualifying direct current applicant to join a regional
5transmission organization if it finds that the membership, and
6associated transfer of functional control of transmission
7assets, benefits Illinois customers in light of the attendant
8costs and is otherwise in the public interest. Nothing in this
9subsection (b-5) requires a qualifying direct current
10applicant to join a regional transmission organization.
11Nothing in this subsection (b-5) requires the owner or
12operator of a high voltage direct current transmission line
13that is not a qualifying direct current project to obtain a
14certificate of public convenience and necessity to the extent
15it is not otherwise required by this Section 8-406 or any other
16provision of this Act.
17    (c) After the effective date of this amendatory Act of
181987, no construction shall commence on any new nuclear power
19plant to be located within this State, and no certificate of
20public convenience and necessity or other authorization shall
21be issued therefor by the Commission, until the Director of
22the Illinois Environmental Protection Agency finds that the
23United States Government, through its authorized agency, has
24identified and approved a demonstrable technology or means for
25the disposal of high level nuclear waste, or until such
26construction has been specifically approved by a statute

 

 

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1enacted by the General Assembly.
2    As used in this Section, "high level nuclear waste" means
3those aqueous wastes resulting from the operation of the first
4cycle of the solvent extraction system or equivalent and the
5concentrated wastes of the subsequent extraction cycles or
6equivalent in a facility for reprocessing irradiated reactor
7fuel and shall include spent fuel assemblies prior to fuel
8reprocessing.
9    (d) In making its determination, the Commission shall
10attach primary weight to the cost or cost savings to the
11customers of the utility. The Commission may consider any or
12all factors which will or may affect such cost or cost savings,
13including the public utility's engineering judgment regarding
14the materials used for construction.
15    (e) The Commission may issue a temporary certificate which
16shall remain in force not to exceed one year in cases of
17emergency, to assure maintenance of adequate service or to
18serve particular customers, without notice or hearing, pending
19the determination of an application for a certificate, and may
20by regulation exempt from the requirements of this Section
21temporary acts or operations for which the issuance of a
22certificate will not be required in the public interest.
23    A public utility shall not be required to obtain but may
24apply for and obtain a certificate of public convenience and
25necessity pursuant to this Section with respect to any matter
26as to which it has received the authorization or order of the

 

 

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1Commission under the Electric Supplier Act, and any such
2authorization or order granted a public utility by the
3Commission under that Act shall as between public utilities be
4deemed to be, and shall have except as provided in that Act the
5same force and effect as, a certificate of public convenience
6and necessity issued pursuant to this Section.
7    No electric cooperative shall be made or shall become a
8party to or shall be entitled to be heard or to otherwise
9appear or participate in any proceeding initiated under this
10Section for authorization of power plant construction and as
11to matters as to which a remedy is available under The Electric
12Supplier Act.
13    (f) Such certificates may be altered or modified by the
14Commission, upon its own motion or upon application by the
15person or corporation affected. Unless exercised within a
16period of 2 years from the grant thereof authority conferred
17by a certificate of convenience and necessity issued by the
18Commission shall be null and void.
19    No certificate of public convenience and necessity shall
20be construed as granting a monopoly or an exclusive privilege,
21immunity or franchise.
22    (g) A public utility that undertakes any of the actions
23described in items (1) through (3) of this subsection (g) or
24that has obtained approval pursuant to Section 8-406.1 of this
25Act shall not be required to comply with the requirements of
26this Section to the extent such requirements otherwise would

 

 

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1apply. For purposes of this Section and Section 8-406.1 of
2this Act, "high voltage electric service line" means an
3electric line having a design voltage of 100,000 or more. For
4purposes of this subsection (g), a public utility may do any of
5the following:
6        (1) replace or upgrade any existing high voltage
7    electric service line and related facilities,
8    notwithstanding its length;
9        (2) relocate any existing high voltage electric
10    service line and related facilities, notwithstanding its
11    length, to accommodate construction or expansion of a
12    roadway or other transportation infrastructure; or
13        (3) construct a high voltage electric service line and
14    related facilities that is constructed solely to serve a
15    single customer's premises or to provide a generator
16    interconnection to the public utility's transmission
17    system and that will pass under or over the premises owned
18    by the customer or generator to be served or under or over
19    premises for which the customer or generator has secured
20    the necessary right of way.
21    (h) A public utility seeking to construct a high-voltage
22electric service line and related facilities (Project) must
23show that the utility has held a minimum of 2 pre-filing public
24meetings to receive public comment concerning the Project in
25each county where the Project is to be located, no earlier than
266 months prior to filing an application for a certificate of

 

 

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1public convenience and necessity from the Commission. Notice
2of the public meeting shall be published in a newspaper of
3general circulation within the affected county once a week for
43 consecutive weeks, beginning no earlier than one month prior
5to the first public meeting. If the Project traverses 2
6contiguous counties and where in one county the transmission
7line mileage and number of landowners over whose property the
8proposed route traverses is one-fifth or less of the
9transmission line mileage and number of such landowners of the
10other county, then the utility may combine the 2 pre-filing
11meetings in the county with the greater transmission line
12mileage and affected landowners. All other requirements
13regarding pre-filing meetings shall apply in both counties.
14Notice of the public meeting, including a description of the
15Project, must be provided in writing to the clerk of each
16county where the Project is to be located. A representative of
17the Commission shall be invited to each pre-filing public
18meeting.
19    (i) For applications filed after the effective date of
20this amendatory Act of the 99th General Assembly, the
21Commission shall by registered mail notify each owner of
22record of land, as identified in the records of the relevant
23county tax assessor, included in the right-of-way over which
24the utility seeks in its application to construct a
25high-voltage electric line of the time and place scheduled for
26the initial hearing on the public utility's application. The

 

 

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1utility shall reimburse the Commission for the cost of the
2postage and supplies incurred for mailing the notice.
3(Source: P.A. 99-399, eff. 8-18-15.)
 
4    (220 ILCS 5/8-512 new)
5    Sec. 8-512. Renewable energy access plan.
6    (a) It is the policy of this State to promote
7cost-effective transmission system development that ensures
8reliability of the electric transmission system, lowers carbon
9emissions, minimizes long-term costs for consumers, and
10supports the electric policy goals of this State. The General
11Assembly finds that:
12        (1) Transmission planning, primarily for reliability
13    purposes, but also for economic and public policy reasons
14    is conducted by regional transmission organizations in
15    which transmission-owning Illinois utilities and other
16    stakeholders are members.
17        (2) Order No. 1000 of the Federal Energy Regulatory
18    Commission requires regional transmission organizations to
19    plan for transmission system needs in light of State
20    public policies and to accept input from states during the
21    transmission system planning processes.
22        (3) The State of Illinois does not currently have a
23    comprehensive power and environmental policy planning
24    process to identify transmission infrastructure needs that
25    can serve as a vital input into the regional and

 

 

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1    interregional transmission organization planning
2    processes conducted under Order No. 1000 and other laws
3    and regulations.
4        (4) This State is an electricity generation and power
5    transmission hub, and can leverage that position to invest
6    in infrastructure that enables new and existing Illinois
7    generators to meet the public policy goals of the State of
8    Illinois and of interconnected states while
9    cost-effectively supporting tens of thousands of jobs in
10    the renewable energy sector in this State.
11        (5) The nation has a need to readily access this
12    State's low-cost, clean electric power, and this State
13    also desires access to clean energy resources in other
14    states to develop and support its low-carbon economy and
15    keep electricity prices low in Illinois and interconnected
16    States.
17        (6) Existing transmission infrastructure may constrain
18    the State's achievement of 100% renewable energy by 2050,
19    the accelerated adoption of electric vehicles in a just
20    and equitable way, and electrification of additional
21    sectors of the Illinois economy.
22        (7) Transmission system congestion within this State
23    and the regional transmission organizations serving this
24    State limits the ability of this State's existing and new
25    electric generation facilities that do not emit carbon
26    dioxide, including renewable energy resources and zero

 

 

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

 

 

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1    primarily by the regional transmission organizations, the
2    Commission should be advocating for the State's interests
3    at the regional transmission organizations to ensure that
4    such planning facilitates the State's policies and goals,
5    including overall consumer savings, power system
6    reliability, economic development, environmental
7    improvement, and carbon reduction.
8    (b) Consistent with the findings identified in subsection
9(a), the Commission shall open an investigation to develop and
10adopt a renewable energy access plan no later than December
1131, 2022. To assist and support the Commission in the
12development of the plan, the Commission shall retain the
13services of technical and policy experts with relevant fields
14of expertise, solicit technical and policy analysis from the
15public, and provide for a 120-day open public comment period
16after publication of a draft report, which shall be published
17no later than 90 days after the comment period ends. The plan
18shall, at a minimum, do the following:
19        (1) designate renewable energy access plan zones
20    throughout this State in areas in which renewable energy
21    resources and suitable land areas are sufficient for
22    developing generating capacity from renewable energy
23    technologies;
24        (2) develop a plan to achieve transmission capacity
25    necessary to deliver the electric output from renewable
26    energy technologies in the renewable energy access plan

 

 

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1    zones to customers in Illinois and other states in a
2    manner that is most beneficial and cost-effective to
3    customers;
4        (3) use this State's position as an electricity
5    generation and power transmission hub to create new
6    investment in this State's renewable energy resources;
7        (4) consider programs, policies, and electric
8    transmission projects that can be adopted within this
9    State that promote the cost-effective delivery of power
10    from renewable energy resources interconnected to the bulk
11    electric system to meet the renewable portfolio standard
12    targets under subsection (c) of Section 1-75 of the
13    Illinois Power Agency Act;
14        (5) consider proposals to improve regional
15    transmission organizations' regional and interregional
16    system planning processes, especially proposals that
17    reduce costs and emissions, create jobs, and increase
18    State and regional power system reliability to prevent
19    high-cost outages that can endanger lives, and analyze of
20    how those proposals would improve reliability and
21    cost-effective delivery of electricity in Illinois and the
22    region;
23        (6) make findings and policy recommendations based on
24    technical and policy analysis regarding locations of
25    renewable energy access plan zones and the transmission
26    system developments needed to cost-effectively achieve the

 

 

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1    public policy goals identified herein; and
2        (7) present the Commission's conclusions and proposed
3    recommendations based on its analysis and use the findings
4    and policy recommendations to determine actions that the
5    Commission should take.
6    (c) No later than December 31, 2025, and every other year
7thereafter, the Commission shall open an investigation to
8develop and adopt an updated renewable energy access plan
9that, at a minimum, evaluates the implementation and
10effectiveness of the renewable energy access plan, recommends
11improvements to the renewable energy access plan, and provides
12changes to transmission capacity necessary to deliver electric
13output from the renewable energy access plan zones.
 
14    (220 ILCS 5/9-228 new)
15    Sec. 9-228. Limits on public utility expenses. The
16Commission shall not consider any of the following as an
17expense of any public utility company, including any
18allocation of those costs to the public utility from an
19affiliate or corporate parent, for the purpose of determining
20any rate or charge, any amount expended for:
21        (1) the pension or other post-employment benefits for
22    an employee convicted of committing a criminal act in the
23    course of his or her work with the utility;
24        (2) any severance or post-employment costs for an
25    employee convicted of committing a criminal act in the

 

 

SB2408 Enrolled- 687 -LRB102 11366 BMS 16699 b

1    course of his or her work with the utility; or
2        (3) criminal penalties, fines, fees, and costs related
3    to criminal charges, criminal investigations, or deferred
4    prosecution agreements.
 
5    (220 ILCS 5/9-229)
6    Sec. 9-229. Consideration of attorney and expert
7compensation as an expense and intervenor compensation fund.
8    (a) The Commission shall specifically assess the justness
9and reasonableness of any amount expended by a public utility
10to compensate attorneys or technical experts to prepare and
11litigate a general rate case filing. This issue shall be
12expressly addressed in the Commission's final order.
13    (b) The State of Illinois shall create a Consumer
14Intervenor Compensation Fund subject to the following:
15        (1) Provision of compensation for Consumer Interest
16    Representatives that intervene in Illinois Commerce
17    Commission proceedings will increase public engagement,
18    encourage additional transparency, expand the information
19    available to the Commission, and improve decision-making.
20        (2) As used in this Section, "Consumer interest
21    representative" means:
22            (A) a residential utility customer or group of
23        residential utility customers represented by a
24        not-for-profit group or organization registered with
25        the Illinois Attorney General under the Solicitation

 

 

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1        of Charity Act;
2            (B) representatives of not-for-profit groups or
3        organizations whose membership is limited to
4        residential utility customers; or
5            (C) representatives of not-for-profit groups or
6        organizations whose membership includes Illinois
7        residents and that address the community, economic,
8        environmental, or social welfare of Illinois
9        residents, except government agencies or intervenors
10        specifically authorized by Illinois law to participate
11        in Commission proceedings on behalf of Illinois
12        consumers.
13        (3) A consumer interest representative is eligible to
14    receive compensation from the consumer intervenor
15    compensation fund if its participation included lay or
16    expert testimony or legal briefing and argument concerning
17    the expenses, investments, rate design, rate impact, or
18    other matters affecting the pricing, rates, costs or other
19    charges associated with utility service, the Commission
20    adopts a material recommendation related to a significant
21    issue in the docket, and participation caused a
22    significant financial hardship to the participant;
23    however, no consumer interest representative shall be
24    eligible to receive an award pursuant to this Section if
25    the consumer interest representative receives any
26    compensation, funding, or donations, directly or

 

 

SB2408 Enrolled- 689 -LRB102 11366 BMS 16699 b

1    indirectly, from parties that have a financial interest in
2    the outcome of the proceeding.
3        (4) Within 30 days after the effective date of this
4    amendatory Act of the 102nd General Assembly, each utility
5    that files a request for an increase in rates under
6    Article IX or Article XVI shall deposit an amount equal to
7    one half of the rate case attorney and expert expense
8    allowed by the Commission, but not to exceed $500,000,
9    into the fund within 35 days of the date of the
10    Commission's final Order in the rate case or 20 days after
11    the denial of rehearing under Section 10-113 of this Act,
12    whichever is later. The Consumer Intervenor Compensation
13    Fund shall be used to provide payment to consumer interest
14    representatives as described in this Section.
15        (5) An electric public utility with 3,000,000 or more
16    retail customers shall contribute $450,000 to the Consumer
17    Intervenor Compensation Fund within 60 days after the
18    effective date of this amendatory Act of the 102nd General
19    Assembly. A combined electric and gas public utility
20    serving fewer than 3,000,000 but more than 500,000 retail
21    customers shall contribute $225,000 to the Consumer
22    Intervenor Compensation Fund within 60 days after the
23    effective date of this amendatory Act of the 102nd General
24    Assembly. A gas public utility with 1,500,000 or more
25    retail customers that is not a combined electric and gas
26    public utility shall contribute $225,000 to the Consumer

 

 

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1    Intervenor Compensation Fund within 60 days after the
2    effective date of this amendatory Act of the 102nd General
3    Assembly. A gas public utility with fewer than 1,500,000
4    retail customers but more than 300,000 retail customers
5    that is not a combined electric and gas public utility
6    shall contribute $80,000 to the Consumer Intervenor
7    Compensation Fund within 60 days after the effective date
8    of this amendatory Act of the 102nd General Assembly. A
9    gas public utility with fewer than 300,000 retail
10    customers that is not a combined electric and gas public
11    utility shall contribute $20,000 to the Consumer
12    Intervenor Compensation Fund within 60 days after the
13    effective date of this amendatory Act of the 102nd General
14    Assembly. A combined electric and gas public utility
15    serving fewer than 500,000 retail customers shall
16    contribute $20,000 to the Consumer Intervenor Compensation
17    Fund within 60 days after the effective date of this
18    amendatory Act of the 102nd General Assembly. A water or
19    sewer public utility serving more than 100,000 retail
20    customers shall contribute $80,000, and a water or sewer
21    public utility serving fewer than 100,000 but more than
22    10,000 retail customers shall contribute $20,000.
23        (6)(A) Prior to the entry of a Final Order in a
24    docketed case, the Commission Administrator shall provide
25    a payment to a consumer interest representative that
26    demonstrates through a verified application for funding

 

 

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1    that the consumer interest representative's participation
2    or intervention without an award of fees or costs imposes
3    a significant financial hardship based on a schedule to be
4    developed by the Commission. The Administrator may require
5    verification of costs incurred, including statements of
6    hours spent, as a condition to paying the consumer
7    interest representative prior to the entry of a Final
8    Order in a docketed case.
9        (B) If the Commission adopts a material recommendation
10    related to a significant issue in the docket and
11    participation caused a financial hardship to the
12    participant, then the consumer interest representative
13    shall be allowed payment for some or all of the consumer
14    interest representative's reasonable attorney's or
15    advocate's fees, reasonable expert witness fees, and other
16    reasonable costs of preparation for and participation in a
17    hearing or proceeding. Expenses related to travel or meals
18    shall not be compensable.
19        (C) The consumer interest representative shall submit
20    an itemized request for compensation to the Consumer
21    Intervenor Compensation Fund, including the advocate's or
22    attorney's reasonable fee rate, the number of hours
23    expended, reasonable expert and expert witness fees, and
24    other reasonable costs for the preparation for and
25    participation in the hearing and briefing within 30 days
26    of the Commission's final order after denial or decision

 

 

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1    on rehearing, if any.
2        (7) Administration of the Fund.
3        (A) The Consumer Intervenor Compensation Fund is
4    created as a special fund in the State treasury. All
5    disbursements from the Consumer Intervenor Compensation
6    Fund shall be made only upon warrants of the Comptroller
7    drawn upon the Treasurer as custodian of the Fund upon
8    vouchers signed by the Executive Director of the
9    Commission or by the person or persons designated by the
10    Director for that purpose. The Comptroller is authorized
11    to draw the warrant upon vouchers so signed. The Treasurer
12    shall accept all warrants so signed and shall be released
13    from liability for all payments made on those warrants.
14    The Consumer Intervenor Compensation Fund shall be
15    administered by an Administrator that is a person or
16    entity that is independent of the Commission. The
17    administrator will be responsible for the prudent
18    management of the Consumer Intervenor Compensation Fund
19    and for recommendations for the award of consumer
20    intervenor compensation from the Consumer Intervenor
21    Compensation Fund. The Commission shall issue a request
22    for qualifications for a third-party program administrator
23    to administer the Consumer Intervenor Compensation Fund.
24    The third-party administrator shall be chosen through a
25    competitive bid process based on selection criteria and
26    requirements developed by the Commission. The Illinois

 

 

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1    Procurement Code does not apply to the hiring or payment
2    of the Administrator. All Administrator costs may be paid
3    for using monies from the Consumer Intervenor Compensation
4    Fund, but the Program Administrator shall strive to
5    minimize costs in the implementation of the program.
6        (B) The computation of compensation awarded from the
7    fund shall take into consideration the market rates paid
8    to persons of comparable training and experience who offer
9    similar services, but may not exceed the comparable market
10    rate for services paid by the public utility as part of its
11    rate case expense.
12        (C)(1) Recommendations on the award of compensation by
13    the administrator shall include consideration of whether
14    the Commission adopted a material recommendation related
15    to a significant issue in the docket and whether
16    participation caused a financial hardship to the
17    participant and the payment of compensation is fair, just
18    and reasonable.
19        (2) Recommendations on the award of compensation by
20    the administrator shall be submitted to the Commission for
21    approval. Unless the Commission initiates an investigation
22    within 45 days after the notice to the Commission, the
23    award of compensation shall be allowed 45 days after
24    notice to the Commission. Such notice shall be given by
25    filing with the Commission on the Commission's e-docket
26    system, and keeping open for public inspection the award

 

 

SB2408 Enrolled- 694 -LRB102 11366 BMS 16699 b

1    for compensation proposed by the Administrator. The
2    Commission shall have power, and it is hereby given
3    authority, either upon complaint or upon its own
4    initiative without complaint, at once, and if it so
5    orders, without answer or other formal pleadings, but upon
6    reasonable notice, to enter upon a hearing concerning the
7    propriety of the award.
8    (c) The Commission may adopt rules to implement this
9Section.
10(Source: P.A. 96-33, eff. 7-10-09.)
 
11    (220 ILCS 5/9-241)  (from Ch. 111 2/3, par. 9-241)
12    Sec. 9-241. No public utility shall, as to rates or other
13charges, services, facilities or in other respect, make or
14grant any preference or advantage to any corporation or person
15or subject any corporation or person to any prejudice or
16disadvantage. No public utility shall establish or maintain
17any unreasonable difference as to rates or other charges,
18services, facilities, or in any other respect, either as
19between localities or as between classes of service.
20    However, nothing in this Section shall be construed as
21limiting the authority of the Commission to permit the
22establishment of economic development rates as incentives to
23economic development either in enterprise zones as designated
24by the State of Illinois or in other areas of a utility's
25service area. Such rates should be available to existing

 

 

SB2408 Enrolled- 695 -LRB102 11366 BMS 16699 b

1businesses which demonstrate an increase to existing load as
2well as new businesses which create new load for a utility so
3as to create a more balanced utilization of generating
4capacity. The Commission shall ensure that such rates are
5established at a level which provides a net benefit to
6customers within a public utility's service area.
7    On or before January 1, 2023, the Commission shall conduct
8a comprehensive study to assess whether low-income discount
9rates for electric and natural gas residential customers are
10appropriate and the potential design and implementation of any
11such rates. The Commission shall include its findings,
12together with the appropriate recommendations, in a report to
13be provided to the General Assembly. Upon completion of the
14study, the Commission shall have the authority to permit or
15require electric and natural gas utilities to file a tariff
16establishing low-income discount rates.
17    Such study shall assess, at a minimum, the following:
18        (1) customer eligibility requirements, including
19    income-based eligibility and eligibility based on
20    participation in or eligibility for certain public
21    assistance programs;
22        (2) appropriate rate structures, including
23    consideration of tiered discounts for different income
24    levels;
25        (3) appropriate recovery mechanisms, including the
26    consideration of volumetric charges and customer charges;

 

 

SB2408 Enrolled- 696 -LRB102 11366 BMS 16699 b

1        (4) appropriate verification mechanisms;
2        (5) measures to ensure customer confidentiality and
3    data safeguards;
4        (6) outreach and consumer education procedures; and
5        (7) the impact that a low-income discount rate would
6    have on the affordability of delivery service to
7    low-income customers and customers overall.
8    The Commission shall adopt rules requiring utility
9companies to produce information, in the form of a mailing,
10and other approved methods of distribution, to its consumers,
11to inform the consumers of available rebates, discounts,
12credits, and other cost-saving mechanisms that can help them
13lower their monthly utility bills, and send out such
14information semi-annually, unless otherwise provided by this
15Article.
16    Prior to October 1, 1989, no public utility providing
17electrical or gas service shall consider the use of solar or
18other nonconventional renewable sources of energy by a
19customer as a basis for establishing higher rates or charges
20for any service or commodity sold to such customer; nor shall a
21public utility subject any customer utilizing such energy
22source or sources to any other prejudice or disadvantage on
23account of such use. No public utility shall without the
24consent of the Commission, charge or receive any greater
25compensation in the aggregate for a lesser commodity, product,
26or service than for a greater commodity, product or service of

 

 

SB2408 Enrolled- 697 -LRB102 11366 BMS 16699 b

1like character.
2    The Commission, in order to expedite the determination of
3rate questions, or to avoid unnecessary and unreasonable
4expense, or to avoid unjust or unreasonable discrimination
5between classes of customers, or, whenever in the judgment of
6the Commission public interest so requires, may, for rate
7making and accounting purposes, or either of them, consider
8one or more municipalities either with or without the adjacent
9or intervening rural territory as a regional unit where the
10same public utility serves such region under substantially
11similar conditions, and may within such region prescribe
12uniform rates for consumers or patrons of the same class.
13    Any public utility, with the consent and approval of the
14Commission, may as a basis for the determination of the
15charges made by it classify its service according to the
16amount used, the time when used, the purpose for which used,
17and other relevant factors.
18(Source: P.A. 91-357, eff. 7-29-99.)
 
19    (220 ILCS 5/16-105.5 new)
20    Sec. 16-105.5. Rate case filing and revenue-neutral rate
21design.
22    (a) An electric utility that files a general rate case
23pursuant to Section 9-201 of this Act or a Multi-Year Rate Plan
24pursuant to Section 16-108.18 of this Act may omit the rate
25design component of such filing and subsequently separately

 

 

SB2408 Enrolled- 698 -LRB102 11366 BMS 16699 b

1file this component with the Commission, subject to the
2requirements of subsections (b) and (c) of this Section.
3    (b) If the electric utility makes the election described
4in this Section, then the filing shall be consistent with the
5rate design and cost allocation across customer classes
6approved in the Commission's most recent order regarding the
7electric utility's request for a general adjustment to its
8rates entered under Section 9-201, subsection (e) of Section
916-108.5, or Section 16-108.18 of this Act, as applicable.
10    (c) If the electric utility makes the election described
11in this Section, then the following provisions apply to the
12separate filing of the revenue-neutral rate design component:
13        (1) No later than one year after the tariffs
14    implementing the general rate case filing or Multi-year
15    Rate Plan filing, as described in subsection (b) of this
16    Section, are placed into effect, the electric utility
17    shall make a filing with the Commission that proposes
18    changes to the tariffs to incorporate the findings of any
19    final rate design orders of the Commission applicable to
20    the electric utility and entered subsequent to the
21    Commission's approval of the tariffs. If no such orders
22    have been entered, then the electric utility must submit
23    its separate revenue-neutral rate design filing no later
24    than 3 years after the date on which the Commission's most
25    recent final rate design order was entered for the
26    electric utility. The electric utility's separate

 

 

SB2408 Enrolled- 699 -LRB102 11366 BMS 16699 b

1    revenue-neutral rate design filing may either propose
2    revenue-neutral tariff changes or refile the existing
3    tariffs without change, which shall present the Commission
4    with an opportunity to suspend the tariffs and consider
5    revenue-neutral tariff changes related to rate design. The
6    Commission shall, after notice and hearing, enter its
7    order approving, or approving with modification, the
8    proposed changes to the tariffs within 240 days after the
9    electric utility's filing. Any changes ordered by the
10    Commission shall become effective at the commencement of
11    the first January monthly billing period that begins no
12    earlier than 30 days after the Commission issues its order
13    adopting such changes.
14        (2) Following Commission approval under paragraph (1)
15    of this subsection (c), the electric utility shall make a
16    filing with the Commission during each subsequent 3-year
17    period that either proposes revenue-neutral tariff changes
18    or refiles the existing tariffs without change, which
19    shall present the Commission with an opportunity to
20    suspend the tariffs and consider revenue-neutral tariff
21    changes related to rate design. The requirements of this
22    paragraph (2) shall terminate at the time that the
23    electric utility files a general rate case or Multi-Year
24    Rate Plan that includes the rate design component.
 
25    (220 ILCS 5/16-105.6 new)

 

 

SB2408 Enrolled- 700 -LRB102 11366 BMS 16699 b

1    Sec. 16-105.6. Amortization of charges or credits.
2    (a) It is in the public interest to mitigate the customer
3bill impacts of large expenses incurred by electric utilities
4by directing that expenses exceeding the applicable threshold
5specified in this Section be amortized over the prescribed
6period. Such amortization will levelize customer bill impacts
7and, in many instances, better align the period of cost
8recovery with the period over which customers receive the
9benefit of the expenditure. Accordingly, an electric utility
10that files a general rate increase under Section 9-201 of this
11Act or a Multi-Year Rate Plan under Section 16-108.18 of this
12Act shall amortize, over a 5-year period, each charge or
13credit that exceeds the applicable amount identified in
14subsection (b) of this Section and that relates to (1) a
15workforce reduction program's severance costs; (2) changes in
16accounting rules; (3) changes in law; (4) compliance with any
17Commission-initiated audit; and (5) a single storm or weather
18system, or other similar expense.
19    Any unamortized balance shall be reflected in rate base.
20    In this Section, "changes in law" includes any enactment,
21repeal, or amendment in a law, ordinance, rule, regulation,
22interpretation, permit, license, consent, or order, including
23those relating to taxes, accounting, or environmental matters,
24or in the interpretation or application thereof by any
25governmental authority occurring after the effective date of
26this amendatory Act of the 102nd General Assembly.

 

 

SB2408 Enrolled- 701 -LRB102 11366 BMS 16699 b

1    Nothing in this Section is intended to prohibit the
2Commission from reviewing the prudence and reasonableness of
3the costs amortized pursuant to this Section.
4    (b) An electric utility that serves more than 3,000,000
5customers in the State shall amortize the full amount of each
6charge or credit described in subsection (a) of this Section
7that exceeds $10,000,000 in the applicable calendar year, and
8an electric utility that serves less than 3,000,000 customers
9in the State shall amortize the full amount of each such charge
10or credit that exceeds $3,700,000 in the applicable calendar
11year.
 
12    (220 ILCS 5/16-105.7 new)
13    Sec. 16-105.7. Revenue balancing adjustments.
14    (a) It is in the public interest to decouple electric
15utility sales and revenues, to mitigate the impact on
16utilities of energy savings goals, to mitigate a utility's
17disincentive to promote energy efficiency, and to recognize
18changes in sales attributable to weather, electric vehicles
19and other electrification, adoption of distributed energy
20resources, and other volatile or uncontrollable factors
21without adversely affecting utility customers.
22    (b) For the purposes of this Section, "reconciliation
23period" means a period beginning with the January monthly
24billing period and extending through the December monthly
25billing period of the same calendar year.

 

 

SB2408 Enrolled- 702 -LRB102 11366 BMS 16699 b

1    (c) As set forth in subsection (d) of this Section, the
2Commission shall approve a tariff by which distribution
3revenues shall be compared annually to the revenue requirement
4or requirements approved by the Commission on which the rates
5giving rise to those revenues were based to prevent
6undercollections or overcollections. An electric utility shall
7submit an annual revenue balancing reconciliation report to
8the Commission reflecting the difference between the actual
9delivery service revenue and multi-year rate case revenue
10requirement for the applicable reconciliation and identifying
11the charges or credits to be applied thereafter. Such
12reconciliation and calculation of associated charges or
13credits shall be conducted on a customer class basis. The
14annual revenue balancing reconciliation report shall be filed
15with the Commission no later than March 20 of the year
16following a reconciliation period. The Commission may initiate
17a review of the revenue balancing reconciliation report each
18year to determine if any subsequent adjustment is necessary to
19align actual delivery service revenue and rate case revenue
20requirement. If the Commission elects to initiate such review,
21the Commission shall, after notice and hearing, enter an order
22approving, or approving as modified, such revenue balancing
23reconciliation report no later than 120 days after the utility
24files its report with the Commission. If the Commission does
25not initiate such a review, the revenue balancing
26reconciliation report and the identified charges or credits

 

 

SB2408 Enrolled- 703 -LRB102 11366 BMS 16699 b

1shall be deemed accepted and approved 120 days after the
2utility files the report and shall not be subject to review in
3any other proceeding. Any balancing adjustment shall take
4effect during the following January monthly billing period.
5    (d) Each electric utility shall file a tariff in
6compliance with the provisions of this Section within 120 days
7after the effective date of this amendatory Act of the 102nd
8General Assembly. The Commission shall approve the tariff if
9it finds that it is consistent with the provisions of the
10Section. If the Commission does not so find, it shall approve
11the tariff with modification to conform it to the requirements
12of this Section or otherwise reject the tariff and explain how
13the utility can modify the tariff and refile to comply with the
14requirements of this Section.
 
15    (220 ILCS 5/16-105.10 new)
16    Sec. 16-105.10. Independent baseline assessment.
17    (a) Prior to the filing of the initial Multi-Year
18Integrated Grid Plan described in Section 16-105.17 of this
19Act, the General Assembly finds that an independent audit of
20the current state of the grid, and of the expenditures made
21since 2012, will need to be made.
22    Specifically, the General Assembly finds:
23        (1) Pursuant to the Energy Infrastructure
24    Modernization Act and subsequent clarifying legislation,
25    electric utilities in this State that serve over 300,000

 

 

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1    retail customers have made substantial investments in the
2    grid and advanced metering infrastructure.
3        (2) Before a Multi-Year Integrated Grid Plan is filed
4    under Section 16-105.17, it is necessary to understand the
5    benefits of these investments to the grid and to customers
6    and to evaluate the current condition of the distribution
7    grid.
8        (3) It is also necessary for electric utilities, the
9    Commission, and stakeholders to have an independently
10    verified set of data to establish the baseline for future
11    distribution grid spending.
12        (4) The Commission has authority to order and
13    implement the requirements of this Section under Section
14    8-102 of this Act.
15    (b) Terms used in this Section have the meanings given to
16those terms in Sections 16-102, 16-107.6, and 16-108 of this
17Act.
18    (c) Within 30 days after the effective date of this
19amendatory Act of the 102nd General Assembly, the Commission
20shall issue an order initiating an audit of each electric
21utility serving over 300,000 retail customers in the State,
22which shall examine the following:
23        (1) An assessment of the distribution grid, as
24    described in paragraph (2) of subsection (a) of this
25    Section. The Commission shall have the authority to
26    require additional items which it deems necessary.

 

 

SB2408 Enrolled- 705 -LRB102 11366 BMS 16699 b

1        (2) An analysis of the utility's capital projects
2    placed into service in the preceding 9 years, including,
3    but not limited to, assessing the value of deploying
4    advanced metering infrastructure to modernize and optimize
5    the grid and deliver value to customers.
6        (3) An analysis of the utility's initiatives to
7    optimize the reliability and resiliency of the grid, other
8    than through capital spending.
9        (4) Creation of a data baseline to inform the
10    beginning of the multi-year integrated grid planning
11    process described in Section 16-105.17 of this Act.
12        (5) Identification of any deficiencies in data which
13    may impact the planning process.
14    (d) It is contemplated that the auditor will utilize
15materials filed with the Commission by the utilities with
16respect to their expenditures in the preceding 9 years;
17however, the auditor may also, with Commission approval,
18assess other information deemed necessary to make its report.
19    (e) The results of the audit described in this Section
20shall be reflected in a report delivered to the Commission,
21describing the information specified in this Section. Such
22report is to be delivered no later than 180 days after the
23Commission enters its order pursuant to subsection (c) of this
24Section. It is understood that any public report may not
25contain items that are confidential or proprietary.
26    (f) The costs of an electric utility's audit described in

 

 

SB2408 Enrolled- 706 -LRB102 11366 BMS 16699 b

1this Section shall not exceed $500,000 and shall be paid for by
2the electric utility that is the subject of the audit. Such
3costs shall be a recoverable expense.
4    (g) The Commission shall have the authority to retain the
5services of an auditor to assist with the distribution
6planning process, as well as in docketed proceedings. Such
7expenses for these activities shall also be borne by the
8Commission.
 
9    (220 ILCS 5/16-105.17 new)
10    Sec. 16-105.17. Multi-Year Integrated Grid Plan.
11    (a) The General Assembly finds that ensuring alignment of
12regulated utility operations, expenditures, and investments
13with public benefit goals, including safety, reliability,
14resiliency, affordability, equity, emissions reductions, and
15expansion of clean distributed energy resources, is critical
16to maximizing the benefits of the interconnected utility grid
17and cost-effective utility expenditures on the grid. It is the
18policy of the State to promote inclusive, comprehensive,
19transparent, cost-effective distribution system planning and
20disclosures processes that minimize long-term costs for
21Illinois customers and support the achievement of State
22renewable energy development and other clean energy, public
23health, and environmental policy goals. Utility distribution
24system expenditures, programs, investments, and policies must
25be evaluated in coordination with these goals. In particular,

 

 

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1the General Assembly finds that:
2        (1) Investment in infrastructure to support and enable
3    existing and new distributed energy resources creates
4    significant economic development, environmental, and
5    public health benefits in the State.
6        (2) Illinois' electricity distribution system must
7    cost-effectively integrate renewable energy resources,
8    including utility-scale renewable energy resources,
9    community renewable generation, and distributed renewable
10    energy resources, support beneficial electrification,
11    including electric vehicle use and adoption, promote
12    opportunities for third-party investment in
13    nontraditional, grid-related technologies and resources
14    such as batteries, solar photovoltaic panels, and smart
15    thermostats, reduce energy usage generally and especially
16    during times of greatest reliance on fossil fuels, and
17    enhance customer engagement opportunities.
18        (3) Inclusive distribution system planning is an
19    essential tool for the Commission, public utilities, and
20    stakeholders to effectively coordinate environmental,
21    consumer, reliability, and equity goals at fair and
22    reasonable costs, and for ensuring transparent utility
23    accountability for meeting those goals.
24        (4) Any planning process should advance Illinois
25    energy policy goals while ensuring utility investments are
26    cost-effective. Such a process should maximize the sharing

 

 

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1    of information, minimize overlap with existing filing
2    requirements to ensure robust stakeholder participation,
3    and recognize the responsibility of the utility to manage
4    the grid in a safe, reliable manner.
5        (5) The General Assembly is concerned that, in the
6    absence of a transparent, meaningful distribution system
7    planning process, utility investments may not always serve
8    customers' best interests, appropriately promote the
9    expansion of clean distributed energy resources, and
10    advance equity and environmental justice.
11        (6) The General Assembly is also encouraged by the
12    opportunities presented by nontraditional solutions to
13    utility, customer, and grid needs that may be more
14    efficient and cost-effective, and less environmentally
15    harmful than traditional solutions. Nontraditional
16    solutions include distributed energy resources owned or
17    implemented by customers and independent third parties,
18    controllable load, beneficial electrification, or rate
19    design that encourages efficient energy use.
20        (7) The General Assembly finds that Illinois
21    utilities' current processes for planning their
22    distribution system should be made more accessible and
23    transparent to individuals and communities, and that more
24    inclusive and accessible distribution system planning
25    processes would be in the interests of all Illinois
26    residents.

 

 

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1        (8) The General Assembly finds it would be beneficial
2    to require utilities to demonstrate how their spending
3    promotes identified State clean energy goals, such as
4    integrating renewable energy, empowering customers to make
5    informed choices, supporting electric vehicles, beneficial
6    electrification, and energy storage, achieving equity
7    goals, enhancing resilience, and maintaining reliability.
8    The General Assembly therefore directs the utilities to
9implement distribution system planning as described in this
10Section in order to accelerate progress on Illinois clean
11energy and environmental goals and hold electric utilities
12publicly accountable for their performance.
13    (b) Unless otherwise specified, the terms used in this
14Section shall have the same meanings as defined in Sections
1516-102 and 16-107.6. As used in this Section:
16    "Demand response" means measures that decrease peak
17electricity demand or shift demand from peak to off-peak
18periods.
19    "Distributed energy resources" or "DER" means a wide range
20of technologies that are connected to the grid, including
21those that are located on the customer side of the customer's
22electric meter and can provide value to the distribution
23system, including, but not limited to, distributed generation,
24energy storage, electric vehicles, and demand response
25technologies.
26    "Environmental justice communities" means the definition

 

 

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1of that term based on existing methodologies and findings,
2used and as may be updated by the Illinois Power Agency and its
3Program Administrator in the Illinois Solar for All Program.
4    (c) This Section applies to electric utilities serving
5more than 500,000 retail customers in the State.
6    (d) The Multi-Year Integrated Grid Plan ("the Plan") shall
7be designed to:
8        (1) ensure coordination of the State's renewable
9    energy goals, climate and environmental goals with the
10    utility's distribution system investments, and programs
11    and policies over a 5-year planning horizon to maximize
12    the benefits of each while ensuring utility expenditures
13    are cost-effective;
14        (2) optimize utilization of electricity grid assets
15    and resources to minimize total system costs;
16        (3) support efforts to bring the benefits of grid
17    modernization and clean energy, including, but not limited
18    to, deployment of distributed energy resources, to all
19    retail customers, and support efforts to bring at least
20    40% of the benefits of those benefits to Equity Investment
21    Eligible Communities. Nothing in this paragraph is meant
22    to require a specific amount of spending in a particular
23    geographic area;
24        (4) enable greater customer engagement, empowerment,
25    and options for energy services;
26        (5) reduce grid congestion, minimize the time and

 

 

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1    expense associated with interconnection, and increase the
2    capacity of the distribution grid to host increasing
3    levels of distributed energy resources, to facilitate
4    availability and development of distributed energy
5    resources, particularly in locations that enhance consumer
6    and environmental benefits;
7        (6) ensure opportunities for robust public
8    participation through open, transparent planning
9    processes.
10        (7) provide for the analysis of the cost-effectiveness
11    of proposed system investments, which takes into account
12    environmental costs and benefits;
13        (8) to the maximum extent practicable, achieve or
14    support the achievement of Illinois environmental goals,
15    including those described in Section 9.10 of the
16    Environmental Protection Act and Section 1-75 of the
17    Illinois Power Agency Act, and emissions reductions
18    required to improve the health, safety, and prosperity of
19    all Illinois residents;
20        (9) support existing Illinois policy goals promoting
21    the long-term growth of energy efficiency, demand
22    response, and investments in renewable energy resources;
23        (10) provide sufficient public information to the
24    Commission, stakeholders, and market participants in order
25    to enable nonemitting customer-owned or third-party
26    distributed energy resources, acting individually or in

 

 

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1    aggregate, to seamlessly and easily connect to the grid,
2    provide grid benefits, support grid services, and achieve
3    environmental outcomes, without necessarily requiring
4    utility ownership or controlling interest over those
5    resources, and enable those resources to act as
6    alternatives to utility capital investments; and
7        (11) provide delivery services at rates that are
8    affordable to all customers, including low-income
9    customers.
10    (e) Plan Development Stakeholder Process.
11        (1) To promote the transparency of utility
12    distributions system planned investments and the planning
13    process for those investments, the Commission shall
14    convene a workshop process, over a period of no less than 5
15    months, for each such utility for the purpose of
16    establishing an open, inclusive, and cooperative forum
17    regarding such investments. The workshops shall be
18    facilitated by an independent, third-party facilitator
19    selected by the Commission. Data and projections provided
20    through the workshop process shall be designed to provide
21    participants with information about the electric utility's
22    (i) historic distribution system investments for at least
23    the 5 years prior to the year in which the workshop is held
24    and (ii) planned investments for the 5-year period
25    following the year in which the workshop is held. The
26    workshop process shall recognize that estimates for later

 

 

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1    years will be less reliable and indicative of future
2    conduct than estimates for earlier years and that the
3    electric utility is subject to financial and system
4    planning processes. No later than January 1, 2022, the
5    facilitator shall initiate a series of workshops for each
6    electric utility subject to this Section. The series of
7    workshops shall include no fewer than 6 workshops and
8    shall conclude no later than June 1, 2022.
9        (2) The workshops shall be designed to achieve the
10    following objectives:
11            (A) review utilities' planned capital investments
12        and supporting data;
13            (B) review how utilities plan to invest in their
14        distribution system in order to meet the system's
15        projected needs;
16            (C) review system and locational data on
17        reliability, resiliency, DER, and service quality
18        provided by the utilities;
19            (D) solicit and consider input from diverse
20        stakeholders, including representatives from
21        environmental justice communities, geographically
22        diverse communities, low-income representatives,
23        consumer representatives, environmental
24        representatives, organized labor representatives,
25        third-party technology providers, and utilities;
26            (E) consider proposals from utilities and

 

 

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1        stakeholders on programs and policies necessary to
2        achieve the objectives in subsection (d) of this
3        Section;
4            (F) consider proposals applicable to each
5        component of the utilities' Multi-Year Integrated Grid
6        Plan filings under paragraph (2) of subsection (f) of
7        this Section;
8            (G) educate and equip interested stakeholders so
9        that they can effectively and efficiently provide
10        feedback and input to the electric utility; and
11            (H) review planned capital investment to ensure
12        that delivery services are provided at rates that are
13        affordable to all customers, including low-income
14        customers.
15        (3) To the extent any of the information in
16    subparagraphs (A) through (H) of paragraph (2) of this
17    subsection is designated as confidential and proprietary
18    under the Commission's rules, the proponent of the
19    designation shall have the burden of making the requisite
20    showing under the Commission's rules. For data that is
21    determined to be confidential or that includes personally
22    identifiable information, the Commission may develop
23    procedures and processes to enable data sharing with
24    parties and stakeholders while ensuring the
25    confidentiality of the information.
26        (4) Workshops should be organized and facilitated in a

 

 

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1    manner that encourages representation from diverse
2    stakeholders, ensuring equitable opportunities for
3    participation, without requiring formal intervention or
4    representation by an attorney. Workshops should be held
5    during both day and evening hours, in a variety of
6    locations within each electric utility's service
7    territory, and should allow remote participation.
8        (5) It is a goal of the State that this workshop
9    process will provide a forum for interested stakeholders
10    to effectively and efficiently provide feedback and input
11    to the electric utility. It is also a goal of the State
12    that stakeholder participation in this process will
13    prepare stakeholders to more capably participate in
14    Multi-Year Rate Plan proceedings conducted pursuant to
15    Section 16-108.18 of this Act, if they so elect. As part of
16    the workshop process, the electric utility shall submit to
17    the Commission the electric utility's capital investments
18    proposal, and supporting data described in subparagraphs
19    (A) through (C) of paragraph (2) of this subsection (e)
20    before the start of workshops to allow interested
21    stakeholders to reasonably review data before attending
22    workshops. The Commission shall make public the utility
23    capital investments proposal by posting it on the
24    Commission's website and set the location and time of any
25    workshop to be held as part of the workshop process, and
26    establish a data request process, consistent with the

 

 

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1    Commission's rules, that affords workshop participants
2    opportunities to submit data requests to the utility, and
3    receive responses in accordance with the utility's
4    obligations under the law, prior to the workshop,
5    regarding the information described in this paragraph (5).
6    Upon the written request of a workshop participant, the
7    utility shall also present at a given workshop at least
8    one appropriate company representative who can address the
9    specific written questions or written categories of
10    questions identified in advance by the workshop
11    participant regarding issues related to the utility's
12    Multi-Year Integrated Grid Plan. To facilitate public
13    feedback, the administrator facilitating the workshops
14    shall, throughout the workshop process, develop questions
15    for stakeholder input on topics being considered. This may
16    include, but is not limited to: design of the workshop
17    process, locational data and information provided by
18    utilities, alignment of plans, programs, investments and
19    objectives, and other topics as deemed appropriate by the
20    Commission facilitation staff. Stakeholder feedback shall
21    not be limited to these questions. The information
22    provided as part of the workshop process pursuant to this
23    subsection (e) is intended to be informational and to
24    provide a preliminary view of costs and investments, which
25    may change. Accordingly, the information provided pursuant
26    to this subsection (e) shall not be binding on the utility

 

 

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1    and shall not be the sole basis for a finding in any
2    Commission proceeding of imprudence, unreasonableness, or
3    lack of use or usefulness of any individual or aggregate
4    level of utility plant or other investment or expenditure
5    addressed; however, information contained in the plan may
6    be used in a proceeding before the Commission, with weight
7    of such evidence to be determined by the Commission.
8        (6) Workshops shall not be considered settlement
9    negotiations, compromise negotiations, or offers to
10    compromise for the purposes of Illinois Rule of Evidence
11    408. All materials shared as a part of the workshop
12    process, and that are not determined to be confidential as
13    described in paragraph (3) of this subsection (e), shall
14    be made publicly available on a website made available by
15    the Commission.
16        (7) On conclusion of the workshops, the Commission
17    shall open a comment period that allows interested and
18    diverse stakeholders to submit comments and
19    recommendations regarding the utility's Multi-Year
20    Integrated Grid Plan filing. Based on the workshop process
21    and stakeholder comments and recommendations offered
22    verbally or in writing during the workshops and in writing
23    during the comment period following the workshops, the
24    independent third-party facilitator shall prepare a
25    report, to be submitted to the Commission no later than
26    July 1, 2022, describing the stakeholders, discussions,

 

 

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1    proposals, and areas of consensus and disagreement from
2    the workshop process, and making recommendations to the
3    Commission regarding the utility's Multi-Year Integrated
4    Grid Plan. Interested stakeholders shall have an
5    opportunity to provide comment on the independent
6    third-party facilitator report.
7        (8) Based on discussions in the workshops, the
8    independent third-party facilitator report, and
9    stakeholder comments and recommendations made during and
10    following the workshop process, the Commission shall issue
11    initiating orders no later than August 1, 2022, requiring
12    the electric utilities subject to this Section to file the
13    first Multi-Year Integrated Grid Plan no later than
14    January 20, 2023. The initiating orders shall specify the
15    requirements applicable to the utilities' Multi-Year
16    Integrated Grid Plans, which shall supplement and not
17    replace those requirements described in subsection (f) of
18    this Section.
19    (f) Multi-Year Integrated Grid Plan.
20        (1) Pursuant to this subsection (f) and the initiating
21    orders of the Commission, each electric utility subject to
22    this Section shall, no later than January 20, 2023, submit
23    its first Multi-Year Integrated Grid Plan. No later than
24    January 20, 2026, and every 4 years thereafter, the
25    utility shall submit its subsequent Plan. Each Plan shall:
26            (A) incorporate requirements established by the

 

 

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1        Commission in its initiating order; and
2            (B) propose distribution system investment
3        programs, policies, and plans designed to optimize
4        achievement of the objectives set forth in subsection
5        (d) of this Section and achieve the metrics approved
6        by the Commission pursuant to Section 16-108.18 of
7        this Act.
8        To the extent practicable and reasonable, all
9    programs, policies, and initiatives proposed by the
10    utility in its plan should be informed by stakeholder
11    input received during the workshop process pursuant to
12    subsection (e) of this Section. Where specific stakeholder
13    input has not been incorporated in proposed programs,
14    policies, and plans, the electric utility shall provide an
15    explanation as to why that input was not incorporated.
16        (2) In order to ensure electric utilities' ability to
17    meet the goals and objectives set forth in this Section,
18    the Multi-Year Integrated Grid Plans must include, at
19    minimum, the following information:
20            (A) A description of the utility's distribution
21        system planning process, including:
22                (i) the overview of the process, including
23            frequency and duration of the process, roles, and
24            responsibilities of utility personnel and
25            departments involved;
26                (ii) a summary of the meetings with

 

 

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1            stakeholders conducted prior to filing of the plan
2            with the Commission.
3                (iii) the description of any coordination of
4            the processes with any other planning process
5            internal or external to the utility, including
6            those required by a regional transmission
7            operator.
8            (B) A detailed description of the current
9        operating conditions for the distribution system
10        separately presented for each of the utility's
11        operating areas, where possible, including a detailed
12        description, with supporting data, of system
13        conditions, including baseline data regarding the
14        utility's distribution system from the utility's
15        annual report to the Commission, total distribution
16        system substation capacity in kVa, total miles of
17        primary overhead distribution wire, and total miles of
18        primary underground distribution cable, distributed
19        energy resource deployment by type, size, customer
20        class, and geographic dispersion as to those DERs that
21        have completed the interconnection process, the most
22        current distribution line loss study, current and
23        expected System Average Interruption Frequency Index
24        and Customer Average Interruption Duration Index data
25        for the system, identification of the system model
26        software currently used and planned software

 

 

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1        deployments, and other data needs as requested by the
2        Commission or as determined through Commission rules.
3        The description shall also include the utility's most
4        recent system load and peak demand forecast for at
5        least the next 5 years, and up to 10 years if
6        available, a discussion of how the forecast was
7        prepared and how distributed energy resources and
8        energy efficiency were factored into the forecast, and
9        identification of the forecasting software currently
10        used and planned software deployments.
11            (C) Financial Data.
12                (i) For each of the preceding 5 years, the
13            utility's distribution system investments by the
14            investment categories tracked by the utility,
15            including, but not limited to, new business,
16            facility relocation, capacity expansion, system
17            performance, preventive maintenance, corrective
18            maintenance, the total amount of investments
19            associated with the integration of DERs, the total
20            amount of charges to DER developers and retail
21            customers for interconnection of DERs to the
22            distribution system, and a list of each major
23            investment category the utility used to maintain
24            its routine standing operational activities and
25            the associated plant in service amount for each
26            category in which the plant in service amount is

 

 

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1            at least $2,000,000;
2                (ii) For each of the preceding 5 years, data
3            on and a discussion of the utility's distribution
4            system operation and maintenance expenses;
5                (iii) A 5-year long-range forecast of
6            distribution system capital investments and
7            operational and maintenance expenses, including a
8            discussion of any projections for expenses for the
9            categories listed in subparagraph (i) of this item
10            (C).
11            (D) System data on DERs on the utility's
12        distribution system, including the total number and
13        nameplate capacity of DERs that completed
14        interconnection in the prior year, current DER
15        deployment by type, size, and geographic dispersion,
16        to the extent that granular geographic information
17        does not disclose personally identifiable information,
18        and other data as requested by the Commission or
19        determined by Commission rules.
20            (E) Hosting Capacity and Interconnection
21        Requirements.
22                (i) The utility shall make available on its
23            website the hosting capacity analysis results that
24            shall include mapping and GIS capability, as well
25            as any other requirements requested by the
26            Commission or determined through Commission rules.

 

 

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1            The plan shall identify where the hosting capacity
2            analysis results shall be made publicly available.
3            This shall also include an assessment of the
4            impact of utility investments over the next 5
5            years on hosting capacity and a narrative
6            discussion of how the hosting capacity analysis
7            advances customer-sited distributed energy
8            resources, including electric vehicles, energy
9            storage systems, and photovoltaic resources, and
10            how the identification of interconnection points
11            on the distribution system will support the
12            continued development of distributed energy
13            resources.
14                (ii) Discussion of the utility's
15            interconnection requirements and how they comply
16            with the Commission's applicable regulations.
17            (F) Identification and discussion of the scenarios
18        considered in the development of the utility's
19        Multi-Year Integrated Grid Plan, including DER
20        scenarios, and discussion of base-case and alternative
21        scenarios, how the scenarios were developed and
22        selected, and how the scenarios include a reasonable
23        mix of DERs scenarios, types, and geographic
24        dispersion. Scenarios shall at least consider the
25        5-year forecast horizon of the Multi-Year Integrated
26        Grid Plan, but may also consider longer-term scenarios

 

 

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1        where data is available. The plan shall also include
2        requirements requested by the Commission or determined
3        through Commission rules.
4            (G) An evaluation of the short-term and long-run
5        benefits and costs of distributed energy resources
6        located on the distribution system, including, but not
7        limited to, the locational, temporal, and
8        performance-based benefits and costs of distributed
9        energy resources. The utility shall use the results of
10        this evaluation to inform its analysis of Solution
11        Sourcing Opportunities, including nonwires
12        alternatives, under subparagraph (K) of paragraph (2)
13        subsection (f) of this Section. The Commission may use
14        the data produced through this evaluation to, among
15        other use-cases, inform the Commission's investigation
16        and establishment of tariffs and compensation for
17        distributed energy resources interconnecting to the
18        utility's distribution system, including rebates
19        provided by the electric utility pursuant to Section
20        16-107.6 of this Act.
21            (H) Long-term Distribution System Investment Plan.
22                (i) The utility's planned distribution capital
23            investments for the period covered by the planning
24            process required by this Section, by the
25            investment categories used by the utility, and
26            with discussion of any individual planned projects

 

 

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1            with a planned total investment gross amount of
2            $3,000,000 or more and of the alternatives
3            considered by the utility to such individual
4            projects including any non-traditional
5            alternatives and DER alternatives, and supporting
6            data. This shall provide sufficiently detailed
7            explanations of how the planned investments shall
8            support the goals in subsection (d) of this
9            Section.
10                (ii) Discussion of how the utility's capital
11            investments plan is consistent with Commission
12            orders regarding the procurement of renewable
13            resources as discussed in Section 16-111.5 of this
14            Act, energy efficiency plans as discussed in
15            Section 8-103B, distributed generation rebates as
16            discussed in Section 16-107.6, and any other
17            Commission order affecting the goals described in
18            subsection (d) of this Section.
19                (iii) A plan for achieving the applicable
20            metrics that were approved by the Commission for
21            the utility pursuant to subsection (e) of Section
22            16-108.18 of this Act.
23                (iv) A narrative discussion of the utility's
24            vision for the distribution system over the next 5
25            years.
26                (v) Any additional information requested by

 

 

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1            the Commission or determined through Commission
2            rules.
3            (I) A detailed description of historic
4        distribution system operations and maintenance
5        expenditures for the preceding 5 years and of planned
6        or projected operations and maintenance expenditures
7        for the period covered by the planning process
8        required by this Section, as well as the data,
9        reasoning and explanation supporting planned or
10        projected expenditures. Any additional information
11        requested by the Commission or determined through
12        Commission rules.
13            (J) A detailed plan for achieving the applicable
14        metrics that were approved by the Commission for the
15        utility pursuant to subsection (e) of Section
16        16-108.18 of this Act, including, but not limited to,
17        the following:
18                (i) A description of, exclusive of low-income
19            rate relief programs and other income-qualified
20            programs, how the utility is supporting efforts to
21            bring 40% of benefits from programs, policies, and
22            initiatives proposed in their Multi-Year
23            Integrated Grid Plan to ratepayers in low-income
24            and environmental justice communities. This shall
25            also include any information requested by the
26            Commission or determined through Commission rules.

 

 

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1            Nothing in this subparagraph is meant to require a
2            specific amount of spending in a particular
3            geographic area.
4                (ii) A detailed analysis of current and
5            projected flexible resources, including resource
6            type, size (in MW and MWh), location and
7            environmental impact, as well as anticipated needs
8            that can be met using flexible resources, to meet
9            the goals described in subsection (d) of this
10            Section, to meet the applicable metrics that were
11            approved by the Commission for the utility
12            pursuant to subsection (e) of Section 16-108.18 of
13            this Act, and any other Commission order affecting
14            the goals described in subsection (d) of this
15            Section.
16                (iii) Any additional information requested by
17            the Commission or determined through Commission
18            rules.
19            (K) Identification of potential cost-effective
20        solutions from nontraditional and third-party owned
21        investments that could meet anticipated grid needs,
22        including, but not limited to, distributed energy
23        resources procurements, tariffs or contracts,
24        programmatic solutions, rate design options,
25        technologies or programs that facilitate load
26        flexibility, nonwires alternatives, and other

 

 

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1        solutions that are intended to meet the objectives
2        described at subsection (d). It is the policy of this
3        State that cost-effective third-party or
4        customer-owned distributed energy resources create
5        robust competition and customer choice and shall be
6        considered as appropriate. The Commission shall
7        establish rules determining data or methods for
8        Solution Sourcing Opportunities.
9            (L) A detailed description of the utility's
10        interoperability plan, which must describe the manner
11        in which the electric utility's current and planned
12        distribution system investments will work together and
13        exchange information and data, the extent to which the
14        utility is implementing open standards and interfaces
15        with third-party distributed energy resource owners
16        and aggregators, and the utility's plan for
17        interoperability testing and certification.
18        (3) To the extent any information in utilities'
19    Multi-Year Integrated Grid Plans is designated as
20    confidential and proprietary under the Commission's rules,
21    the proponent of the designation shall have the burden of
22    making the requisite showing under the Commission's rules.
23    For data that is determined to be confidential or that
24    includes personally identifiable information, the
25    Commission may develop procedures and processes to enable
26    data sharing with parties and stakeholders while ensuring

 

 

SB2408 Enrolled- 729 -LRB102 11366 BMS 16699 b

1    the confidentiality of the information. All confidential
2    information exchanged, submitted, or shared by a utility
3    pursuant to this Section shall be protected from
4    intentional and accidental dissemination. The Commission
5    shall have authority to supervise, protect, and restrict
6    access to all confidential, commercially sensitive, or
7    system security related information and data, and shall be
8    authorized to take all necessary steps to protect that
9    information from unauthorized disclosure. This paragraph
10    shall not be interpreted to require a utility to make
11    publicly available any information or data that could
12    compromise the physical or cyber security of a utility's
13    distribution system. Any party that accidentally
14    disseminates confidential information obtained pursuant to
15    a proceeding initiated in accordance with this Section, or
16    is the victim of a cyber-security breach, must notify the
17    affected utility, the Illinois Attorney General, and the
18    Commission staff with 24 hours of knowledge of such
19    dissemination or breach. Any party that fails to provide
20    required notification of such a breach shall be subject to
21    remedies available to the Commission and the Illinois
22    Attorney General.
23        (4) It is the policy of this State that holistic
24    consideration of all related investments, planning
25    processes, tariffs, rate design options, programs, and
26    other utility policies and plans shall be required. To

 

 

SB2408 Enrolled- 730 -LRB102 11366 BMS 16699 b

1    that end, the Commission shall consider, comprehensively,
2    the impact of all related plans, tariffs, programs, and
3    policies on the Plan and on each other, including:
4            (A) time-of-use pricing program pursuant to
5        Section 16-107.7 of this Act, hourly pricing program
6        pursuant to Section 16-107 of this Act, and any other
7        time-variant or dynamic pricing program;
8            (B) distributed generation rebate pursuant to
9        Section 16-107.6 of this Act;
10            (C) net electricity metering, pursuant to Section
11        16-107.5 of this Act;
12            (D) energy efficiency programs pursuant to Section
13        8-103B of this Act;
14            (E) beneficial electrification programs pursuant
15        to Section 16-107.8 of this Act;
16            (F) Equitable Energy Upgrade Program pursuant to
17        Section 16-111.10 of this Act;
18            (G) renewable energy programs and procurements set
19        forth in the Illinois Power Agency Act, including, but
20        not limited to, those set forth in the long-term
21        renewable resources procurement plan developed
22        pursuant to Section 1-20 of that Act; and
23            (H) other plans, programs, and policies that are
24        relevant to distribution grid investments, costs,
25        planning, and other categories as requested by the
26        Commission.

 

 

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1        The Plan shall comprehensively detail the relationship
2    between these plans, tariffs, and programs and to the
3    electric utility's achievement of the objectives in
4    subsection (d). The Plan shall be designed to coordinate
5    each of these plans, programs, and tariffs with the
6    electric utility's long-term distribution system
7    investment planning in order to maximize the benefits of
8    each.
9        (5) The initiating order for the initial Multi-Year
10    Integrated Grid Plan, as well as each electric utility's
11    subsequent Integrated Grid Plans under subsection (g),
12    shall begin a contested proceeding as described in
13    subsection (d) of Section 10-101.1 of this Act.
14            (A) In evaluating a utility's Plan, the Commission
15        shall consider, at minimum, whether the Plan:
16                (1) meets the objectives of this Section;
17                (2) includes the components in paragraph (2)
18            of subsection (f) of this Section;
19                (3) considers and incorporates, where
20            practicable, input from interested stakeholders,
21            including parties and people who offer public
22            comment without legal representation;
23                (4) considers nontraditional, including
24            third-party owned, investment alternatives that
25            can meet grid needs and provide additional
26            benefits (including consumer, economic, and

 

 

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1            environmental benefits) beyond comparable,
2            traditional utility-planned capital investments;
3                (5) equitably benefits environmental justice
4            communities; and
5                (6) maximizes consumer, environmental,
6            economic, and community benefits over a 10-year
7            horizon.
8            (B) The Commission, after notice and hearing,
9        shall modify each electric utility's Plan as necessary
10        to comply with the objectives of this Section. The
11        Commission may approve, or modify and approve, a Plan
12        only if it finds that the Plan is reasonable, complies
13        with the objectives and requirements of this Section,
14        and reasonably incorporates input from parties. The
15        Commission may reject each electric utility's Plan if
16        it finds that the Plan does not comply with the
17        objectives and requirements of this Section. If the
18        Commission enters an order rejecting a Plan, the
19        utility must refile a Plan within 3 months after that
20        order, and until the Commission approves a Plan, the
21        utility's existing Plan will remain in effect.
22            (C) For the initial Integrated Grid Plan filings,
23        the Commission shall enter an order approving,
24        modifying, or rejecting the Plan no later than
25        December 15, 2023. For subsequent Integrated Grid Plan
26        filings, the Commission shall enter an order

 

 

SB2408 Enrolled- 733 -LRB102 11366 BMS 16699 b

1        approving, modifying, or rejecting the Plan no later
2        than December 15 of the year in which it was filed.
3            (D) Each electric utility shall file its proposed
4        Initial Multi-Year Integrated Grid Plan no later than
5        January 20, 2023. Prior to that date and following the
6        initiating order, the Commission shall initiate a case
7        management conference and shall take any appropriate
8        steps to begin meaningful consideration of issues,
9        including enabling interested parties to begin
10        conducting discovery.
11        (6) As part of its order approving a utility's
12    Multi-Year Integrated Grid Plan, including any
13    modifications required, the Commission may create a
14    subsequent implementation plan docket, or multiple
15    implementation plan dockets, if the Commission determines
16    that multiple dockets would be preferable, to consider a
17    utility's detailed plan or plans, as directed in the
18    Commission's order.
19    (g) No later than January 20, 2026 and every 4 years
20thereafter, each electric utility subject to this Section
21shall file a new Multi-Year Integrated Grid Plan for the
22subsequent 4 delivery years after the completion of the
23then-effective Plan. Each Plan shall meet the requirements
24described in subsection (f) of this Section, and shall be
25preceded by a workshop process which meets the same
26requirements described in subsection (e). If appropriate, the

 

 

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1Commission may require additional implementation dockets to
2follow Subsequent Multi-Year Integrated Grid Plan filings.
3    (h) During the period leading to approval of the first
4Multi-Year Integrated Grid Plan, each electric utility will
5necessarily continue to invest in its distribution grid. Those
6investments will be subject to a determination of prudence and
7reasonableness consistent with Commission practice and law.
8Any failure of such investments to conform to the Multi-Year
9Integrated Grid Plan ultimately approved shall not imply
10imprudence or unreasonableness.
11    (i) The Commission shall adopt rules to carry out the
12provisions of this Section under the emergency rulemaking
13provisions set forth in Section 5-45 of the Illinois
14Administrative Procedure Act, and such emergency rules may be
15effective no later than 90 days after the effective date of
16this amendatory Act of the 102nd General Assembly.
 
17    (220 ILCS 5/16-107.5)
18    Sec. 16-107.5. Net electricity metering.
19    (a) The General Assembly Legislature finds and declares
20that a program to provide net electricity metering, as defined
21in this Section, for eligible customers can encourage private
22investment in renewable energy resources, stimulate economic
23growth, enhance the continued diversification of Illinois'
24energy resource mix, and protect the Illinois environment.
25Further, to achieve the goals of this Act that robust options

 

 

SB2408 Enrolled- 735 -LRB102 11366 BMS 16699 b

1for customer-site distributed generation continue to thrive in
2Illinois, the General Assembly finds that a predictable
3transition must be ensured for customers between full net
4metering at the retail electricity rate to the distribution
5generation rebate described in Section 16-107.6.
6    (b) As used in this Section, (i) "community renewable
7generation project" shall have the meaning set forth in
8Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
9customer" means a retail customer that owns, hosts, or
10operates, including any third-party owned systems, a solar,
11wind, or other eligible renewable electrical generating
12facility with a rated capacity of not more than 2,000
13kilowatts that is located on the customer's premises or
14customer's side of the billing meter and is intended primarily
15to offset the customer's own current or future electrical
16requirements; (iii) "electricity provider" means an electric
17utility or alternative retail electric supplier; (iv)
18"eligible renewable electrical generating facility" means a
19generator, which may include the co-location of an energy
20storage system, that is interconnected under rules adopted by
21the Commission and is powered by solar electric energy, wind,
22dedicated crops grown for electricity generation, agricultural
23residues, untreated and unadulterated wood waste, landscape
24trimmings, livestock manure, anaerobic digestion of livestock
25or food processing waste, fuel cells or microturbines powered
26by renewable fuels, or hydroelectric energy; (v) "net

 

 

SB2408 Enrolled- 736 -LRB102 11366 BMS 16699 b

1electricity metering" (or "net metering") means the
2measurement, during the billing period applicable to an
3eligible customer, of the net amount of electricity supplied
4by an electricity provider to the customer customer's premises
5or provided to the electricity provider by the customer or
6subscriber; (vi) "subscriber" shall have the meaning as set
7forth in Section 1-10 of the Illinois Power Agency Act; and
8(vii) "subscription" shall have the meaning set forth in
9Section 1-10 of the Illinois Power Agency Act; (viii) "energy
10storage system" means commercially available technology that
11is capable of absorbing energy and storing it for a period of
12time for use at a later time, including, but not limited to,
13electrochemical, thermal, and electromechanical technologies,
14and may be interconnected behind the customer's meter or
15interconnected behind its own meter; and (ix) "future
16electrical requirements" means modeled electrical requirements
17upon occupation of a new or vacant property, and other
18reasonable expectations of future electrical use, as well as,
19for occupied properties, a reasonable approximation of the
20annual load of 2 electric vehicles and, for non-electric
21heating customers, a reasonable approximation of the
22incremental electric load associated with fuel switching. The
23approximations shall be applied to the appropriate net
24metering tariff and do not need to be unique to each individual
25eligible customer. The utility shall submit these
26approximations to the Commission for review, modification, and

 

 

SB2408 Enrolled- 737 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 738 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 739 -LRB102 11366 BMS 16699 b

1supply service is not provided based on hourly pricing in the
2following manner:
3        (1) If the amount of electricity used by the customer
4    during the billing period exceeds the amount of
5    electricity produced by the customer, the electricity
6    provider shall charge the customer for the net electricity
7    supplied to and used by the customer as provided in
8    subsection (e-5) of this Section.
9        (2) If the amount of electricity produced by a
10    customer during the billing period exceeds the amount of
11    electricity used by the customer during that billing
12    period, the electricity provider supplying that customer
13    shall apply a 1:1 kilowatt-hour credit to a subsequent
14    bill for service to the customer for the net electricity
15    supplied to the electricity provider. The electricity
16    provider shall continue to carry over any excess
17    kilowatt-hour credits earned and apply those credits to
18    subsequent billing periods to offset any
19    customer-generator consumption in those billing periods
20    until all credits are used or until the end of the
21    annualized period.
22        (3) At the end of the year or annualized over the
23    period that service is supplied by means of net metering,
24    or in the event that the retail customer terminates
25    service with the electricity provider prior to the end of
26    the year or the annualized period, any remaining credits

 

 

SB2408 Enrolled- 740 -LRB102 11366 BMS 16699 b

1    in the customer's account shall expire.
2    (d-5) An electricity provider shall measure and charge or
3credit for the net electricity supplied to eligible customers
4or provided by eligible customers whose electric service has
5not been declared competitive pursuant to Section 16-113 of
6this Act as of July 1, 2011 and whose electric delivery service
7is provided and measured on a kilowatt-hour basis and electric
8supply service is provided based on hourly pricing or
9time-of-use rates in the following manner:
10        (1) If the amount of electricity used by the customer
11    during any hourly period or time-of-use period exceeds the
12    amount of electricity produced by the customer, the
13    electricity provider shall charge the customer for the net
14    electricity supplied to and used by the customer according
15    to the terms of the contract or tariff to which the same
16    customer would be assigned to or be eligible for if the
17    customer was not a net metering customer.
18        (2) If the amount of electricity produced by a
19    customer during any hourly period or time-of-use period
20    exceeds the amount of electricity used by the customer
21    during that hourly period or time-of-use period, the
22    energy provider shall apply a credit for the net
23    kilowatt-hours produced in such period. The credit shall
24    consist of an energy credit and a delivery service credit.
25    The energy credit shall be valued at the same price per
26    kilowatt-hour as the electric service provider would

 

 

SB2408 Enrolled- 741 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 742 -LRB102 11366 BMS 16699 b

1    customer shall apply a 1:1 kilowatt-hour credit that
2    reflects the kilowatt-hour based charges in the customer's
3    electric service rate to a subsequent bill for service to
4    the customer for the net electricity supplied to the
5    electricity provider. The electricity provider shall
6    continue to carry over any excess kilowatt-hour credits
7    earned and apply those credits to subsequent billing
8    periods to offset any customer-generator consumption in
9    those billing periods until all credits are used or until
10    the end of the annualized period.
11        (3) At the end of the year or annualized over the
12    period that service is supplied by means of net metering,
13    or in the event that the retail customer terminates
14    service with the electricity provider prior to the end of
15    the year or the annualized period, any remaining credits
16    in the customer's account shall expire.
17    (e-5) An electricity provider shall provide electric
18service to eligible customers who utilize net metering at
19non-discriminatory rates that are identical, with respect to
20rate structure, retail rate components, and any monthly
21charges, to the rates that the customer would be charged if not
22a net metering customer. An electricity provider shall not
23charge net metering customers any fee or charge or require
24additional equipment, insurance, or any other requirements not
25specifically authorized by interconnection standards
26authorized by the Commission, unless the fee, charge, or other

 

 

SB2408 Enrolled- 743 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 744 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 745 -LRB102 11366 BMS 16699 b

1program on the signing over of a customer's renewable energy
2credits; provided, however, this subsection (g) shall not be
3construed to prevent an arms-length agreement between an
4electricity provider and an eligible customer that sets forth
5the ownership or title of the credits.
6    (h) Within 120 days after the effective date of this
7amendatory Act of the 95th General Assembly, the Commission
8shall establish standards for net metering and, if the
9Commission has not already acted on its own initiative,
10standards for the interconnection of eligible renewable
11generating equipment to the utility system. The
12interconnection standards shall address any procedural
13barriers, delays, and administrative costs associated with the
14interconnection of customer-generation while ensuring the
15safety and reliability of the units and the electric utility
16system. The Commission shall consider the Institute of
17Electrical and Electronics Engineers (IEEE) Standard 1547 and
18the issues of (i) reasonable and fair fees and costs, (ii)
19clear timelines for major milestones in the interconnection
20process, (iii) nondiscriminatory terms of agreement, and (iv)
21any best practices for interconnection of distributed
22generation.
23    (h-5) Within 90 days after the effective date of this
24amendatory Act of the 102nd General Assembly, the Commission
25shall:
26        (1) establish an Interconnection Working Group. The

 

 

SB2408 Enrolled- 746 -LRB102 11366 BMS 16699 b

1    working group shall include representatives from electric
2    utilities, developers of renewable electric generating
3    facilities, other industries that regularly apply for
4    interconnection with the electric utilities,
5    representatives of distributed generation customers, the
6    Commission Staff, and such other stakeholders with a
7    substantial interest in the topics addressed by the
8    Interconnection Working Group. The Interconnection Working
9    Group shall address at least the following issues:
10            (A) cost and best available technology for
11        interconnection and metering, including the
12        standardization and publication of standard costs;
13            (B) transparency, accuracy and use of the
14        distribution interconnection queue and hosting
15        capacity maps;
16            (C) distribution system upgrade cost avoidance
17        through use of advanced inverter functions;
18            (D) predictability of the queue management process
19        and enforcement of timelines;
20            (E) benefits and challenges associated with group
21        studies and cost sharing;
22            (F) minimum requirements for application to the
23        interconnection process and throughout the
24        interconnection process to avoid queue clogging
25        behavior;
26            (G) process and customer service for

 

 

SB2408 Enrolled- 747 -LRB102 11366 BMS 16699 b

1        interconnecting customers adopting distributed energy
2        resources, including energy storage;
3            (H) options for metering distributed energy
4        resources, including energy storage;
5            (I) interconnection of new technologies, including
6        smart inverters and energy storage;
7            (J) collect, share, and examine data on Level 1
8        interconnection costs, including cost and type of
9        upgrades required for interconnection, and use this
10        data to inform the final standardized cost of Level 1
11        interconnection; and
12            (K) such other technical, policy, and tariff
13        issues related to and affecting interconnection
14        performance and customer service as determined by the
15        Interconnection Working Group.
16        The Commission may create subcommittees of the
17    Interconnection Working Group to focus on specific issues
18    of importance, as appropriate. The Interconnection Working
19    Group shall report to the Commission on recommended
20    improvements to interconnection rules and tariffs and
21    policies as determined by the Interconnection Working
22    Group at least every 6 months. Such reports shall include
23    consensus recommendations of the Interconnection Working
24    Group and, if applicable, additional recommendations for
25    which consensus was not reached. The Commission shall use
26    the report from the Interconnection Working Group to

 

 

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1    determine whether processes should be commenced to
2    formally codify or implement the recommendations;
3        (2) create or contract for an Ombudsman to resolve
4    interconnection disputes through non-binding arbitration.
5    The Ombudsman may be paid in full or in part through fees
6    levied on the initiators of the dispute; and
7        (3) determine a single standardized cost for Level 1
8    interconnections, which shall not exceed $200.
9    (i) All electricity providers shall begin to offer net
10metering no later than April 1, 2008.
11    (j) An electricity provider shall provide net metering to
12eligible customers according to subsections (d), (d-5), and
13(e). Eligible renewable electrical generating facilities for
14which eligible customers registered for net metering before
15January 1, 2025 shall continue to receive net metering
16services according to subsections (d), (d-5), and (e) of this
17Section for the lifetime of the system, regardless of whether
18those retail customers change electricity providers or whether
19the retail customer benefiting from the system changes. On and
20after January 1, 2025, any eligible customer that applies for
21net metering and previously would have qualified under
22subsections (d), (d-5), or (e) shall only be eligible for net
23metering as described in subsection (n). until the load of its
24net metering customers equals 5% of the total peak demand
25supplied by that electricity provider during the previous
26year. After such time as the load of the electricity

 

 

SB2408 Enrolled- 749 -LRB102 11366 BMS 16699 b

1provider's net metering customers equals 5% of the total peak
2demand supplied by that electricity provider during the
3previous year, eligible customers that begin taking net
4metering shall only be eligible for netting of energy.
5    (k) Each electricity provider shall maintain records and
6report annually to the Commission the total number of net
7metering customers served by the provider, as well as the
8type, capacity, and energy sources of the generating systems
9used by the net metering customers. Nothing in this Section
10shall limit the ability of an electricity provider to request
11the redaction of information deemed by the Commission to be
12confidential business information.
13    (l)(1) Notwithstanding the definition of "eligible
14customer" in item (ii) of subsection (b) of this Section, each
15electricity provider shall allow net metering as set forth in
16this subsection (l) and for the following projects, provided
17that only electric utilities serving more than 200,000
18customers as of January 1, 2021 shall provide net metering for
19projects that are eligible for subparagraph (C) of this
20paragraph (1) and have energized after the effective date of
21this amendatory Act of the 102nd General Assembly:
22        (A) properties owned or leased by multiple customers
23    that contribute to the operation of an eligible renewable
24    electrical generating facility through an ownership or
25    leasehold interest of at least 200 watts in such facility,
26    such as a community-owned wind project, a community-owned

 

 

SB2408 Enrolled- 750 -LRB102 11366 BMS 16699 b

1    biomass project, a community-owned solar project, or a
2    community methane digester processing livestock waste from
3    multiple sources, provided that the facility is also
4    located within the utility's service territory;
5        (B) individual units, apartments, or properties
6    located in a single building that are owned or leased by
7    multiple customers and collectively served by a common
8    eligible renewable electrical generating facility, such as
9    an office or apartment building, a shopping center or
10    strip mall served by photovoltaic panels on the roof; and
11        (C) subscriptions to community renewable generation
12    projects, including community renewable generation
13    projects on the customer's side of the billing meter of a
14    host facility and partially used for the customer's own
15    load.
16    In addition, the nameplate capacity of the eligible
17renewable electric generating facility that serves the demand
18of the properties, units, or apartments identified in
19paragraphs (1) and (2) of this subsection (l) shall not exceed
205,000 2,000 kilowatts in nameplate capacity in total. Any
21eligible renewable electrical generating facility or community
22renewable generation project that is powered by photovoltaic
23electric energy and installed after the effective date of this
24amendatory Act of the 99th General Assembly must be installed
25by a qualified person in compliance with the requirements of
26Section 16-128A of the Public Utilities Act and any rules or

 

 

SB2408 Enrolled- 751 -LRB102 11366 BMS 16699 b

1regulations adopted thereunder.
2    (2) Notwithstanding anything to the contrary, an
3electricity provider shall provide credits for the electricity
4produced by the projects described in paragraph (1) of this
5subsection (l). The electricity provider shall provide credits
6that include at least energy supply, capacity, transmission,
7and, if applicable, the purchased energy adjustment at the
8subscriber's energy supply rate on the subscriber's monthly
9bill equal to the subscriber's share of the production of
10electricity from the project, as determined by paragraph (3)
11of this subsection (l). For customers with transmission or
12capacity charges not charged on a kilowatt-hour basis, the
13electricity provider shall prepare a reasonable approximation
14of the kilowatt-hour equivalent value and provide that value
15as a monetary credit. The electricity provider shall submit
16these approximation methodologies to the Commission for
17review, modification, and approval. Notwithstanding anything
18to the contrary, customers on payment plans or participating
19in budget billing programs shall have credits applied on a
20monthly basis.
21    (3) Notwithstanding anything to the contrary and
22regardless of whether a subscriber to an eligible community
23renewable generation project receives power and energy service
24from the electric utility or an alternative retail electric
25supplier, for projects eligible under paragraph (C) of
26subparagraph (1) of this subsection (l), electric utilities

 

 

SB2408 Enrolled- 752 -LRB102 11366 BMS 16699 b

1serving more than 200,000 customers as of January 1, 2021
2shall provide the monetary credits to a subscriber's
3subsequent bill for the electricity produced by community
4renewable generation projects. The electric utility shall
5provide monetary credits to a subscriber's subsequent bill at
6the utility's total price to compare equal to the subscriber's
7share of the production of electricity from the project, as
8determined by paragraph (5) of this subsection (l). For the
9purposes of this subsection, "total price to compare" means
10the rate or rates published by the Illinois Commerce
11Commission for energy supply for eligible customers receiving
12supply service from the electric utility, and shall include
13energy, capacity, transmission, and the purchased energy
14adjustment. Notwithstanding anything to the contrary,
15customers on payment plans or participating in budget billing
16programs shall have credits applied on a monthly basis. Any
17applicable credit or reduction in load obligation from the
18production of the community renewable generating projects
19receiving a credit under this subsection shall be credited to
20the electric utility to offset the cost of providing the
21credit. To the extent that the credit or load obligation
22reduction does not completely offset the cost of providing the
23credit to subscribers of community renewable generation
24projects as described in this subsection, the electric utility
25may recover the remaining costs through its Multi-Year Rate
26Plan. All electric utilities serving 200,000 or fewer

 

 

SB2408 Enrolled- 753 -LRB102 11366 BMS 16699 b

1customers as of January 1, 2021 shall only provide the
2monetary credits to a subscriber's subsequent bill for the
3electricity produced by community renewable generation
4projects if the subscriber receives power and energy service
5from the electric utility. Alternative retail electric
6suppliers providing power and energy service to a subscriber
7located within the service territory of an electric utility
8not subject to Sections 16-108.18 and 16-118 shall provide the
9monetary credits to the subscriber's subsequent bill for the
10electricity produced by community renewable generation
11projects.
12    (4) If requested by the owner or operator of a community
13renewable generating project, an electric utility serving more
14than 200,000 customers as of January 1, 2021 shall enter into a
15net crediting agreement with the owner or operator to include
16a subscriber's subscription fee on the subscriber's monthly
17electric bill and provide the subscriber with a net credit
18equivalent to the total bill credit value for that generation
19period minus the subscription fee, provided the subscription
20fee is structured as a fixed percentage of bill credit value.
21The net crediting agreement shall set forth payment terms from
22the electric utility to the owner or operator of the community
23renewable generating project, and the electric utility may
24charge a net crediting fee to the owner or operator of a
25community renewable generating project that may not exceed 2%
26of the bill credit value. Notwithstanding anything to the

 

 

SB2408 Enrolled- 754 -LRB102 11366 BMS 16699 b

1contrary, an electric utility serving 200,000 customers or
2fewer as of January 1, 2021 shall not be obligated to enter
3into a net crediting agreement with the owner or operator of a
4community renewable generating project.
5    (5) (3) For the purposes of facilitating net metering, the
6owner or operator of the eligible renewable electrical
7generating facility or community renewable generation project
8shall be responsible for determining the amount of the credit
9that each customer or subscriber participating in a project
10under this subsection (l) is to receive in the following
11manner:
12        (A) The owner or operator shall, on a monthly basis,
13    provide to the electric utility the kilowatthours of
14    generation attributable to each of the utility's retail
15    customers and subscribers participating in projects under
16    this subsection (l) in accordance with the customer's or
17    subscriber's share of the eligible renewable electric
18    generating facility's or community renewable generation
19    project's output of power and energy for such month. The
20    owner or operator shall electronically transmit such
21    calculations and associated documentation to the electric
22    utility, in a format or method set forth in the applicable
23    tariff, on a monthly basis so that the electric utility
24    can reflect the monetary credits on customers' and
25    subscribers' electric utility bills. The electric utility
26    shall be permitted to revise its tariffs to implement the

 

 

SB2408 Enrolled- 755 -LRB102 11366 BMS 16699 b

1    provisions of this amendatory Act of the 102nd General
2    Assembly this amendatory Act of the 99th General Assembly.
3    The owner or operator shall separately provide the
4    electric utility with the documentation detailing the
5    calculations supporting the credit in the manner set forth
6    in the applicable tariff.
7        (B) For those participating customers and subscribers
8    who receive their energy supply from an alternative retail
9    electric supplier, the electric utility shall remit to the
10    applicable alternative retail electric supplier the
11    information provided under subparagraph (A) of this
12    paragraph (3) for such customers and subscribers in a
13    manner set forth in such alternative retail electric
14    supplier's net metering program, or as otherwise agreed
15    between the utility and the alternative retail electric
16    supplier. The alternative retail electric supplier shall
17    then submit to the utility the amount of the charges for
18    power and energy to be applied to such customers and
19    subscribers, including the amount of the credit associated
20    with net metering.
21        (C) A participating customer or subscriber may provide
22    authorization as required by applicable law that directs
23    the electric utility to submit information to the owner or
24    operator of the eligible renewable electrical generating
25    facility or community renewable generation project to
26    which the customer or subscriber has an ownership or

 

 

SB2408 Enrolled- 756 -LRB102 11366 BMS 16699 b

1    leasehold interest or a subscription. Such information
2    shall be limited to the components of the net metering
3    credit calculated under this subsection (l), including the
4    bill credit rate, total kilowatthours, and total monetary
5    credit value applied to the customer's or subscriber's
6    bill for the monthly billing period.
7    (l-5) Within 90 days after the effective date of this
8amendatory Act of the 102nd General Assembly this amendatory
9Act of the 99th General Assembly, each electric utility
10subject to this Section shall file a tariff or tariffs to
11implement the provisions of subsection (l) of this Section,
12which shall, consistent with the provisions of subsection (l),
13describe the terms and conditions under which owners or
14operators of qualifying properties, units, or apartments may
15participate in net metering. The Commission shall approve, or
16approve with modification, the tariff within 120 days after
17the effective date of this amendatory Act of the 102nd General
18Assembly this amendatory Act of the 99th General Assembly.
19    (m) Nothing in this Section shall affect the right of an
20electricity provider to continue to provide, or the right of a
21retail customer to continue to receive service pursuant to a
22contract for electric service between the electricity provider
23and the retail customer in accordance with the prices, terms,
24and conditions provided for in that contract. Either the
25electricity provider or the customer may require compliance
26with the prices, terms, and conditions of the contract.

 

 

SB2408 Enrolled- 757 -LRB102 11366 BMS 16699 b

1    (n) On and after January 1, 2025 At such time, if any, that
2the load of the electricity provider's net metering customers
3equals 5% of the total peak demand supplied by that
4electricity provider during the previous year, as specified in
5subsection (j) of this Section, the net metering services
6described in subsections (d), (d-5), and (e), (e-5), and (f)
7of this Section shall no longer be offered, except as to those
8eligible renewable electrical generating facilities for which
9retail customers that are receiving net metering service under
10these subsections at the time the net metering services under
11those subsections are no longer offered; those systems shall
12continue to receive net metering services described in
13subsections (d), (d-5), and (e) of this Section for the
14lifetime of the system, regardless of if those retail
15customers change electricity providers or whether the retail
16customer benefiting from the system changes. The electric
17utility serving more than 200,000 customers as of January 1,
182021 is responsible for ensuring the billing credits continue
19without lapse for the lifetime of systems, as required in
20subsection (o). Those retail customers that begin taking net
21metering service after the date that net metering services are
22no longer offered under such subsections shall be subject to
23the provisions set forth in the following paragraphs (1)
24through (3) of this subsection (n):
25        (1) An electricity provider shall charge or credit for
26    the net electricity supplied to eligible customers or

 

 

SB2408 Enrolled- 758 -LRB102 11366 BMS 16699 b

1    provided by eligible customers whose electric supply
2    service is not provided based on hourly pricing in the
3    following manner:
4            (A) If the amount of electricity used by the
5        customer during the monthly billing period exceeds the
6        amount of electricity produced by the customer, then
7        the electricity provider shall charge the customer for
8        the net kilowatt-hour based electricity charges
9        reflected in the customer's electric service rate
10        supplied to and used by the customer as provided in
11        paragraph (3) of this subsection (n).
12            (B) If the amount of electricity produced by a
13        customer during the monthly billing period exceeds the
14        amount of electricity used by the customer during that
15        billing period, then the electricity provider
16        supplying that customer shall apply a 1:1
17        kilowatt-hour energy or monetary credit kilowatt-hour
18        supply charges to the customer's subsequent bill. The
19        customer shall choose between 1:1 kilowatt-hour or
20        monetary credit at the time of application. For the
21        purposes of this subsection, "kilowatt-hour supply
22        charges" means the kilowatt-hour equivalent values for
23        energy, capacity, transmission, and the purchased
24        energy adjustment, if applicable. Notwithstanding
25        anything to the contrary, customers on payment plans
26        or participating in budget billing programs shall have

 

 

SB2408 Enrolled- 759 -LRB102 11366 BMS 16699 b

1        credits applied on a monthly basis. that reflects the
2        kilowatt-hour based energy charges in the customer's
3        electric service rate to a subsequent bill for service
4        to the customer for the net electricity supplied to
5        the electricity provider. The electricity provider
6        shall continue to carry over any excess kilowatt-hour
7        or monetary energy credits earned and apply those
8        credits to subsequent billing periods. For customers
9        with transmission or capacity charges not charged on a
10        kilowatt-hour basis, the electricity provider shall
11        prepare a reasonable approximation of the
12        kilowatt-hour equivalent value and provide that value
13        as a monetary credit. The electricity provider shall
14        submit these approximation methodologies to the
15        Commission for review, modification, and approval. to
16        offset any customer-generator consumption in those
17        billing periods until all credits are used or until
18        the end of the annualized period.
19            (C) (Blank). At the end of the year or annualized
20        over the period that service is supplied by means of
21        net metering, or in the event that the retail customer
22        terminates service with the electricity provider prior
23        to the end of the year or the annualized period, any
24        remaining credits in the customer's account shall
25        expire.
26        (2) An electricity provider shall charge or credit for

 

 

SB2408 Enrolled- 760 -LRB102 11366 BMS 16699 b

1    the net electricity supplied to eligible customers or
2    provided by eligible customers whose electric supply
3    service is provided based on hourly pricing in the
4    following manner:
5            (A) If the amount of electricity used by the
6        customer during any hourly period exceeds the amount
7        of electricity produced by the customer, then the
8        electricity provider shall charge the customer for the
9        net electricity supplied to and used by the customer
10        as provided in paragraph (3) of this subsection (n).
11            (B) If the amount of electricity produced by a
12        customer during any hourly period exceeds the amount
13        of electricity used by the customer during that hourly
14        period, the energy provider shall calculate an energy
15        credit for the net kilowatt-hours produced in such
16        period, and shall apply that credit as a monetary
17        credit to the customer's subsequent bill. The value of
18        the energy credit shall be calculated using the same
19        price per kilowatt-hour as the electric service
20        provider would charge for kilowatt-hour energy sales
21        during that same hourly period and shall also include
22        values for capacity and transmission. For customers
23        with transmission or capacity charges not charged on a
24        kilowatt-hour basis, the electricity provider shall
25        prepare a reasonable approximation of the
26        kilowatt-hour equivalent value and provide that value

 

 

SB2408 Enrolled- 761 -LRB102 11366 BMS 16699 b

1        as a monetary credit. The electricity provider shall
2        submit these approximation methodologies to the
3        Commission for review, modification, and approval.
4        Notwithstanding anything to the contrary, customers on
5        payment plans or participating in budget billing
6        programs shall have credits applied on a monthly
7        basis.
8        (3) An electricity provider shall provide electric
9    service to eligible customers who utilize net metering at
10    non-discriminatory rates that are identical, with respect
11    to rate structure, retail rate components, and any monthly
12    charges, to the rates that the customer would be charged
13    if not a net metering customer. An electricity provider
14    shall charge the customer for the net electricity supplied
15    to and used by the customer according to the terms of the
16    contract or tariff to which the same customer would be
17    assigned or be eligible for if the customer was not a net
18    metering customer. An electricity provider shall not
19    charge net metering customers any fee or charge or require
20    additional equipment, insurance, or any other requirements
21    not specifically authorized by interconnection standards
22    authorized by the Commission, unless the fee, charge, or
23    other requirement would apply to other similarly situated
24    customers who are not net metering customers. The charge
25    or credit that the customer receives for net electricity
26    shall be at a rate equal to the customer's energy supply

 

 

SB2408 Enrolled- 762 -LRB102 11366 BMS 16699 b

1    rate. The customer remains responsible for the gross
2    amount of delivery services charges, supply-related
3    charges that are kilowatt based, and all taxes and fees
4    related to such charges. The customer also remains
5    responsible for all taxes and fees that would otherwise be
6    applicable to the net amount of electricity used by the
7    customer. Paragraphs (1) and (2) of this subsection (n)
8    shall not be construed to prevent an arms-length agreement
9    between an electricity provider and an eligible customer
10    that sets forth different prices, terms, and conditions
11    for the provision of net metering service, including, but
12    not limited to, the provision of the appropriate metering
13    equipment for non-residential customers. Nothing in this
14    paragraph (3) shall be interpreted to mandate that a
15    utility that is only required to provide delivery services
16    to a given customer must also sell electricity to such
17    customer.
18    (o) Within 90 days after the effective date of this
19amendatory Act of the 102nd General Assembly, each electric
20utility subject to this Section shall file a tariff, which
21shall, consistent with the provisions of this Section, propose
22the terms and conditions under which a customer may
23participate in net metering. The tariff for electric utilities
24serving more than 200,000 customers as of January 1, 2021
25shall also provide a streamlined and transparent bill
26crediting system for net metering to be managed by the

 

 

SB2408 Enrolled- 763 -LRB102 11366 BMS 16699 b

1electric utilities. The terms and conditions shall include,
2but are not limited to, that an electric utility shall manage
3and maintain billing of net metering credits and charges
4regardless of if the eligible customer takes net metering
5under an electric utility or alternative retail electric
6supplier. The electric utility serving more than 200,000
7customers as of January 1, 2021 shall process and approve all
8net metering applications, even if an eligible customer is
9served by an alternative retail electric supplier; and the
10utility shall forward application approval to the appropriate
11alternative retail electric supplier. Eligibility for net
12metering shall remain with the owner of the utility billing
13address such that, if an eligible renewable electrical
14generating facility changes ownership, the net metering
15eligibility transfers to the new owner. The electric utility
16serving more than 200,000 customers as of January 1, 2021
17shall manage net metering billing for eligible customers to
18ensure full crediting occurs on electricity bills, including,
19but not limited to, ensuring net metering crediting begins
20upon commercial operation date, net metering billing transfers
21immediately if an eligible customer switches from an electric
22utility to alternative retail electric supplier or vice versa,
23and net metering billing transfers between ownership of a
24valid billing address. All transfers referenced in the
25preceding sentence shall include transfer of all banked
26credits. All electric utilities serving 200,000 or fewer

 

 

SB2408 Enrolled- 764 -LRB102 11366 BMS 16699 b

1customers as of January 1, 2021 shall manage net metering
2billing for eligible customers receiving power and energy
3service from the electric utility to ensure full crediting
4occurs on electricity bills, ensuring net metering crediting
5begins upon commercial operation date, net metering billing
6transfers immediately if an eligible customer switches from an
7electric utility to alternative retail electric supplier or
8vice versa, and net metering billing transfers between
9ownership of a valid billing address. Alternative retail
10electric suppliers providing power and energy service to
11eligible customers located within the service territory of an
12electric utility serving 200,000 or fewer customers as of
13January 1, 2021 shall manage net metering billing for eligible
14customers to ensure full crediting occurs on electricity
15bills, including, but not limited to, ensuring net metering
16crediting begins upon commercial operation date, net metering
17billing transfers immediately if an eligible customer switches
18from an electric utility to alternative retail electric
19supplier or vice versa, and net metering billing transfers
20between ownership of a valid billing address.
21(Source: P.A. 99-906, eff. 6-1-17.)
 
22    (220 ILCS 5/16-107.6)
23    Sec. 16-107.6. Distributed generation rebate.
24    (a) In this Section:
25    "Additive services" means the services that distributed

 

 

SB2408 Enrolled- 765 -LRB102 11366 BMS 16699 b

1energy resources provide to the energy system and society that
2are not (1) already included in the base rebates for
3system-wide grid services; or (2) otherwise already
4compensated. Additive services may reflect, but shall not be
5limited to, any geographic, time-based, performance-based, and
6other benefits of distributed energy resources, as well as the
7present and future technological capabilities of distributed
8energy resources and present and future grid needs.
9    "Distributed energy resource" means a wide range of
10technologies that are located on the customer side of the
11customer's electric meter, including, but not limited to,
12distributed generation, energy storage, electric vehicles, and
13demand response technologies.
14    "Energy storage system" means commercially available
15technology that is capable of absorbing energy and storing it
16for a period of time for use at a later time, including, but
17not limited to, electrochemical, thermal, and
18electromechanical technologies, and may be interconnected
19behind the customer's meter or interconnected behind its own
20meter.
21    "Smart inverter" means a device that converts direct
22current into alternating current and meets the IEEE 1547-2018
23equipment standards. Until devices that meet the IEEE
241547-2018 standard are available, devices that meet the UL
251741 SA standard are acceptable. can autonomously contribute
26to grid support during excursions from normal operating

 

 

SB2408 Enrolled- 766 -LRB102 11366 BMS 16699 b

1voltage and frequency conditions by providing each of the
2following: dynamic reactive and real power support, voltage
3and frequency ride-through, ramp rate controls, communication
4systems with ability to accept external commands, and other
5functions from the electric utility.
6    "Subscriber" has the meaning set forth in Section 1-10 of
7the Illinois Power Agency Act.
8    "Subscription" has the meaning set forth in Section 1-10
9of the Illinois Power Agency Act.
10    "System-wide grid services" means the benefits that a
11distributed energy resource provides to the distribution grid
12for a period of no less than 25 years. System-wide grid
13services do not vary by location, time, or the performance
14characteristics of the distributed energy resource.
15System-wide grid services include, but are not limited to,
16avoided or deferred distribution capacity costs, resilience
17and reliability benefits, avoided or deferred distribution
18operation and maintenance costs, distribution voltage and
19power quality benefits, and line loss reductions.
20    "Threshold date" means December 31, 2024 or the date on
21which the utility's tariff or tariffs setting the new
22compensation values established under subsection (e) take
23effect, whichever is later. the load of an electricity
24provider's net metering customers equals 5% of the total peak
25demand supplied by that electricity provider during the
26previous year, as specified under subsection (j) of Section

 

 

SB2408 Enrolled- 767 -LRB102 11366 BMS 16699 b

116-107.5 of this Act.
2    (b) An electric utility that serves more than 200,000
3customers in the State shall file a petition with the
4Commission requesting approval of the utility's tariff to
5provide a rebate to the owner or operator of a retail customer
6who owns or operates distributed generation, including
7third-party owned systems, that meets the following criteria:
8        (1) has a nameplate generating capacity no greater
9    than 5,000 2,000 kilowatts and is primarily used to offset
10    a that customer's electricity load;
11        (2) is located on the customer's side of the billing
12    meter and premises, for the customer's own use, and not
13    for commercial use or sales, including, but not limited
14    to, wholesale sales of electric power and energy;
15        (3) is located in the electric utility's service
16    territory; and
17        (3) (4) is interconnected to electric distribution
18    facilities owned by the electric utility under rules
19    adopted by the Commission by means of the inverter or
20    smart inverter required by this Section, as applicable.
21    For purposes of this Section, "distributed generation"
22shall satisfy the definition of distributed renewable energy
23generation device set forth in Section 1-10 of the Illinois
24Power Agency Act to the extent such definition is consistent
25with the requirements of this Section.
26    In addition, any new photovoltaic distributed generation

 

 

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1that is installed after June 1, 2017 (the effective date of
2Public Act 99-906) this amendatory Act of the 99th General
3Assembly must be installed by a qualified person, as defined
4by subsection (i) of Section 1-56 of the Illinois Power Agency
5Act.
6    The tariff shall include a base rebate that compensates
7distributed generation for the system-wide grid services
8associated with distributed generation and, after the
9proceeding described in subsection (e) of this Section, an
10additional payment or payments for the additive services. The
11tariff shall provide that the smart inverter associated with
12the distributed generation shall provide autonomous response
13to grid conditions through its default settings as approved by
14the Commission. Default settings may not be changed after the
15execution of the interconnection agreement except by mutual
16agreement between the utility and the owner or operator of the
17distributed generation. provide that the utility shall be
18permitted to operate and control the smart inverter associated
19with the distributed generation that is the subject of the
20rebate for the purpose of preserving reliability during
21distribution system reliability events and shall address the
22terms and conditions of the operation and the compensation
23associated with the operation. Nothing in this Section shall
24negate or supersede Institute of Electrical and Electronics
25Engineers equipment interconnection requirements or standards
26or other similar standards or requirements. The tariff shall

 

 

SB2408 Enrolled- 769 -LRB102 11366 BMS 16699 b

1not limit the ability of the smart inverter or other
2distributed energy resource to provide wholesale market
3products such as regulation, demand response, or other
4services, or limit the ability of the owner of the smart
5inverter or the other distributed energy resource to receive
6compensation for providing those wholesale market products or
7services. The tariff shall also provide for additional uses of
8the smart inverter that shall be separately compensated and
9which may include, but are not limited to, voltage and VAR
10support, regulation, and other grid services. As part of the
11proceeding described in subsection (e) of this Section, the
12Commission shall review and determine whether smart inverters
13can provide any additional uses or services. If the Commission
14determines that an additional use or service would be
15beneficial, the Commission shall determine the terms and
16conditions of the operation and how the use or service should
17be separately compensated.
18    (b-5) Within 30 days after the effective date of this
19amendatory Act of the 102nd General Assembly, each electric
20public utility with 3,000,000 or more retail customers shall
21file a tariff with the Commission that further compensates any
22retail customer that installs or has installed photovoltaic
23facilities paired with energy storage facilities on or
24adjacent to its premises for the benefits the facilities
25provide to the distribution grid. The tariff shall provide
26that, in addition to the other rebates identified in this

 

 

SB2408 Enrolled- 770 -LRB102 11366 BMS 16699 b

1Section, the electric utility shall rebate to such retail
2customer (i) the previously incurred and future costs of
3installing interconnection facilities and related
4infrastructure to enable full participation in the PJM
5Interconnection, LLC or its successor organization frequency
6regulation market; and (ii) all wholesale demand charges
7incurred after the effective date of this amendatory Act of
8the 102nd General Assembly. The Commission shall approve, or
9approve with modification, the tariff within 120 days after
10the utility's filing.
11    (c) The proposed tariff authorized by subsection (b) of
12this Section shall include the following participation terms
13for and formulae to calculate the value of the rebates to be
14applied under this Section for distributed generation that
15satisfies the criteria set forth in subsection (b) of this
16Section:
17        (1) The owner or operator of distributed generation
18    that services (1) Until the utility files its tariff or
19    tariffs to place into effect the rebate values established
20    by the Commission under subsection (e) of this Section,
21    non-residential customers not eligible for net metering
22    under subsection (d), (d-5), or (e) of Section 16-107.5 of
23    this Act that are taking service under a net metering
24    program offered by an electricity provider under the terms
25    of Section 16-107.5 of this Act may apply for a rebate as
26    provided for in this Section. Until the threshold date,

 

 

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1    the The value of the rebate shall be $250 per kilowatt of
2    nameplate generating capacity, measured as nominal DC
3    power output, of that a non-residential customer's
4    distributed generation. To the extent the distributed
5    generation also has an associated energy storage, then the
6    energy storage system shall be separately compensated with
7    a base rebate of $250 per kilowatt-hour of nameplate
8    capacity. Any distributed generation device that is
9    compensated for storage in this subsection (1) before the
10    threshold date shall participate in one or more programs
11    determined through the Multi-Year Integrated Grid Planning
12    process that are designed to meet peak reduction and
13    flexibility. After the threshold date, the value of the
14    base rebate and additional compensation for any additive
15    services shall be as determined by the Commission in the
16    proceeding described in subsection (e) of this Section,
17    provided that the value of the base rebate for system-wide
18    grid services shall not be lower than $250 per kilowatt of
19    nameplate generating capacity of distributed generation or
20    community renewable generation project.
21        (2) The owner or operator of distributed generation
22    that, before the threshold date, would have been eligible
23    for net metering under subsection (d), (d-5), or (e) of
24    Section 16-107.5 of this Act and that has not previously
25    received a distributed generation rebate, may apply for a
26    rebate as provided for in this Section. Until the

 

 

SB2408 Enrolled- 772 -LRB102 11366 BMS 16699 b

1    threshold date, the value of the base rebate shall be $300
2    per kilowatt of nameplate generating capacity, measured as
3    nominal DC power output, of the distributed generation.
4    The owner or operator of distributed generation that,
5    before the threshold date, is eligible for net metering
6    under subsection (d), (d-5), or (e) of Section 16-107.5 of
7    this Act may apply for a base rebate for an energy storage
8    device that uses the same smart inverter as the
9    distributed generation, regardless of whether the
10    distributed generation applies for a rebate for the
11    distributed generation device. The energy storage system
12    shall be separately compensated at a base payment of $300
13    per kilowatt-hour of nameplate capacity. Any distributed
14    generation device that is compensated for storage in this
15    subsection (2) before the threshold date shall participate
16    in a peak time rebate program, hourly pricing program, or
17    time-of-use rate program offered by the applicable
18    electric utility. After the threshold date, the value of
19    the base rebate and additional compensation for any
20    additive services shall be as determined by the Commission
21    in the proceeding described in subsection (e) of this
22    Section, provided that, prior to December 31, 2029, the
23    value of the base rebate for system-wide services shall
24    not be lower than $300 per kilowatt of nameplate
25    generating capacity of distributed generation, after which
26    it shall not be lower than $250 per kilowatt of nameplate

 

 

SB2408 Enrolled- 773 -LRB102 11366 BMS 16699 b

1    capacity.
2        (2) After the utility's tariff or tariffs setting the
3    new rebate values established under subsection (d) of this
4    Section take effect, retail customers may, as applicable,
5    make the following elections:
6            (A) Residential customers that are taking service
7        under a net metering program offered by an electricity
8        provider under the terms of Section 16-107.5 of this
9        Act on the threshold date may elect to either continue
10        to take such service under the terms of such program as
11        in effect on such threshold date for the useful life of
12        the customer's eligible renewable electric generating
13        facility as defined in such Section, or file an
14        application to receive a rebate under the terms of
15        this Section, provided that such application must be
16        submitted within 6 months after the effective date of
17        the tariff approved under subsection (d) of this
18        Section. The value of the rebate shall be the amount
19        established by the Commission and reflected in the
20        utility's tariff pursuant to subsection (e) of this
21        Section.
22            (B) Non-residential customers that are taking
23        service under a net metering program offered by an
24        electricity provider under the terms of Section
25        16-107.5 of this Act on the threshold date may apply
26        for a rebate as provided for in this Section. The value

 

 

SB2408 Enrolled- 774 -LRB102 11366 BMS 16699 b

1        of the rebate shall be the amount established by the
2        Commission and reflected in the utility's tariff
3        pursuant to subsection (e) of this Section.
4        (3) Upon approval of a rebate application submitted
5    under this subsection (c), the retail customer shall no
6    longer be entitled to receive any delivery service credits
7    for the excess electricity generated by its facility and
8    shall be subject to the provisions of subsection (n) of
9    Section 16-107.5 of this Act.
10        (4) To be eligible for a rebate described in this
11    subsection (c), the owner or operator of the distributed
12    generation customers who begin taking service after the
13    effective date of this amendatory Act of the 99th General
14    Assembly under a net metering program offered by an
15    electricity provider under the terms of Section 16-107.5
16    of this Act must have a smart inverter installed and in
17    operation on the associated with the customer's
18    distributed generation.
19    (d) The Commission shall review the proposed tariff
20authorized by subsection submitted under subsections (b) and
21(c) of this Section and may make changes to the tariff that are
22consistent with this Section and with the Commission's
23authority under Article IX of this Act, subject to notice and
24hearing. Following notice and hearing, the Commission shall
25issue an order approving, or approving with modification, such
26tariff no later than 240 days after the utility files its

 

 

SB2408 Enrolled- 775 -LRB102 11366 BMS 16699 b

1tariff. Upon the effective date of this amendatory Act of the
2102nd General Assembly, an electric utility shall file a
3petition with the Commission to amend and update any existing
4tariffs to comply with subsections (b) and (c).
5    (e) By no later than June 30, 2023, When the total
6generating capacity of the electricity provider's net metering
7customers is equal to 3%, the Commission shall open an
8independent, statewide investigation into the value of, and
9compensation for, distributed energy resources. The Commission
10shall conduct the investigation, but may arrange for experts
11or consultants independent of the utilities and selected by
12the Commission to assist with the investigation. The cost of
13the investigation shall be shared by the utilities filing
14tariffs under subsection (b) of this Section but may be
15recovered as an expense through normal ratemaking procedures.
16an annual process and formula for calculating the value of
17rebates for the retail customers described in subsections (b)
18and (f) of this Section that submit rebate applications after
19the threshold date for an electric utility that elected to
20file a tariff pursuant to this Section.
21        (1) The Commission shall ensure that the investigation
22    includes, at minimum, diverse sets of stakeholders; a
23    review of best practices in calculating the value of
24    distributed energy resource benefits; a review of the full
25    value of the distributed energy resources and the manner
26    in which each component of that value is or is not

 

 

SB2408 Enrolled- 776 -LRB102 11366 BMS 16699 b

1    otherwise compensated; and assessments of how the value of
2    distributed energy resources may evolve based on the
3    present and future technological capabilities of
4    distributed energy resources and based on present and
5    future grid needs.
6        (2) The Commission's final order concluding this
7    investigation shall establish an annual process and
8    formula for the compensation of distributed generation and
9    energy storage systems, and an initial set of inputs for
10    that formula. The Commission's final order concluding this
11    investigation shall establish base rebates that compensate
12    distributed generation, community renewable generation
13    projects and energy storage systems for the system-wide
14    grid services that they provide. Those base rebate values
15    shall be consistent across the state, and shall not vary
16    by customer, customer class, customer location, or any
17    other variable. With respect to rebates for distributed
18    generation or community renewable generation projects,
19    that rebate shall not be lower than $250 per kilowatt of
20    nameplate generating capacity of the distributed
21    generation or community renewable generation project. The
22    Commission's final order concluding this proceeding shall
23    also direct the utilities to update the formula, on an
24    annual basis, with inputs derived from their integrated
25    grid plans developed pursuant to Section 16-105.17. The
26    base rebate shall be updated annually based on the annual

 

 

SB2408 Enrolled- 777 -LRB102 11366 BMS 16699 b

1    updates to the formula inputs, but, with respect to
2    rebates for distributed generation or community renewable
3    generation projects, shall be no lower than $250 per
4    kilowatt of nameplate generating capacity of the
5    distributed generation or community renewable generation
6    project.
7        (3) The Commission shall also determine, as a part of
8    its investigation under this subsection, whether
9    distributed energy resources can provide any additive
10    services. Those additive services may include services
11    that are provided through utility-controlled responses to
12    grid conditions. If the Commission determines that
13    distributed energy resources can provide additive grid
14    services, the Commission shall determine the terms and
15    conditions for the operation and compensation of those
16    services. That compensation shall be above and beyond the
17    base rebate that the distributed energy generation,
18    community renewable generation project and energy storage
19    system receives. Compensation for additive services may
20    vary by location, time, performance characteristics,
21    technology types, or other variables.
22        (4) The Commission shall ensure that compensation for
23    distributed energy resources, including base rebates and
24    any payments for additive services, shall reflect all
25    reasonably known and measurable values of the distributed
26    generation over its full expected useful life.

 

 

SB2408 Enrolled- 778 -LRB102 11366 BMS 16699 b

1    Compensation for additive services shall reflect, but
2    shall not be limited to, any geographic, time-based,
3    performance-based, and other benefits of distributed
4    generation, as well as the present and future
5    technological capabilities of distributed energy resources
6    and present and future grid needs.
7        (5) The Commission shall consider the electric
8    utility's integrated grid plan developed pursuant to
9    Section 16-105.17 of this Act to help identify the value
10    of distributed energy resources for the purpose of
11    calculating the compensation described in this subsection.
12        (6) The Commission shall determine additional
13    compensation for distributed energy resources that creates
14    savings and value on the distribution system by being
15    co-located or in close proximity to electric vehicle
16    charging infrastructure in use by medium-duty and
17    heavy-duty vehicles, primarily serving environmental
18    justice communities, as outlined in the utility integrated
19    grid planning process under Section 16-105.17 of this Act.
20    No later than 60 days after the Commission enters its
21final order under this subsection (e), each utility shall file
22its updated tariff or tariffs in compliance with the order,
23including new tariffs for the recovery of costs incurred under
24this subsection (e) that shall provide for volumetric-based
25cost recovery, and the Commission shall approve, or approve
26with modification, the tariff or tariffs within 240 days after

 

 

SB2408 Enrolled- 779 -LRB102 11366 BMS 16699 b

1the utility's filing.
2    The investigation shall include diverse sets of
3stakeholders, calculations for valuing distributed energy
4resource benefits to the grid based on best practices, and
5assessments of present and future technological capabilities
6of distributed energy resources. The value of such rebates
7shall reflect the value of the distributed generation to the
8distribution system at the location at which it is
9interconnected, taking into account the geographic,
10time-based, and performance-based benefits, as well as
11technological capabilities and present and future grid needs.
12No later than 10 days after the Commission enters its final
13order under this subsection (e), the utility shall file its
14tariff or tariffs in compliance with the order, and the
15Commission shall approve, or approve with modification, the
16tariff or tariffs within 45 days after the utility's filing.
17For those rebate applications filed after the threshold date
18but before the utility's tariff or tariffs filed pursuant to
19this subsection (e) take effect, the value of the rebate shall
20remain at the value established in subsection (c) of this
21Section until the tariff is approved.
22    (f) Notwithstanding any provision of this Act to the
23contrary, the owner or operator , developer, or subscriber of
24a community renewable generation project as defined in Section
251-10 of the Illinois Power Agency Act facility that is part of
26a net metering program provided under subsection (l) of

 

 

SB2408 Enrolled- 780 -LRB102 11366 BMS 16699 b

1Section 16-107.5 shall also be eligible to apply for the
2rebate described in this Section. The owner or operator of the
3community renewable A subscriber to the generation project
4facility may apply for a rebate in the amount of the
5subscriber's subscription only if the owner or operator, or
6previous owner or operator, of the community renewable
7generation project , developer, or previous subscriber to the
8same panel or panels has not already submitted an application,
9and, regardless of whether the subscriber is a residential or
10non-residential customer, may be allowed the amount identified
11in paragraph (1) of subsection (c) or in subsection (e) of this
12Section applicable to such customer on the date that the
13application is submitted. An application for a rebate for a
14portion of a project described in this subsection (f) may be
15submitted at or after the time that a related request for net
16metering is made.
17    (g) The owner of the distributed generation or community
18renewable generation project may apply for the rebate or
19rebates approved under this Section at the time of execution
20of an interconnection agreement with the distribution utility
21and shall receive the value available at that time of
22execution of the interconnection agreement, provided the
23project reaches mechanical completion within 24 months after
24execution of the interconnection agreement. If the project has
25not reached mechanical completion within 24 months after
26execution, the owner may reapply for the rebate or rebates

 

 

SB2408 Enrolled- 781 -LRB102 11366 BMS 16699 b

1approved under this Section available at the time of
2application and shall receive the value available at the time
3of application. The utility shall issue the rebate no No later
4than 60 days after the project is energized. utility receives
5an application for a rebate under its tariff approved under
6subsection (d) or (e) of this Section, the utility shall issue
7a rebate to the applicant under the terms of the tariff. In the
8event the application is incomplete or the utility is
9otherwise unable to calculate the payment based on the
10information provided by the owner, the utility shall issue the
11payment no later than 60 days after the application is
12complete or all requested information is received.
13    (h) An electric utility shall recover from its retail
14customers all of the costs of the rebates made under a tariff
15or tariffs approved under subsection (d) of placed into effect
16under this Section, including, but not limited to, the value
17of the rebates and all costs incurred by the utility to comply
18with and implement subsections (b) and (c) of this Section,
19but not including costs incurred by the utility to comply with
20and implement subsection (e) of this Section, consistent with
21the following provisions:
22        (1) The utility shall defer the full amount of its
23    costs incurred under this Section as a regulatory asset.
24    The total costs deferred as a regulatory asset shall be
25    amortized over a 15-year period. The unamortized balance
26    shall be recognized as of December 31 for a given year. The

 

 

SB2408 Enrolled- 782 -LRB102 11366 BMS 16699 b

1    utility shall also earn a return on the total of the
2    unamortized balance of the regulatory assets, less any
3    deferred taxes related to the unamortized balance, at an
4    annual rate equal to the utility's weighted average cost
5    of capital that includes, based on a year-end capital
6    structure, the utility's actual cost of debt for the
7    applicable calendar year and a cost of equity, which shall
8    be calculated as the sum of (i) the average for the
9    applicable calendar year of the monthly average yields of
10    30-year U.S. Treasury bonds published by the Board of
11    Governors of the Federal Reserve System in its weekly H.15
12    Statistical Release or successor publication; and (ii) 580
13    basis points, including a revenue conversion factor
14    calculated to recover or refund all additional income
15    taxes that may be payable or receivable as a result of that
16    return.
17        When an electric utility creates a regulatory asset
18    under the provisions of this paragraph (1) of subsection
19    (h) Section, the costs are recovered over a period during
20    which customers also receive a benefit, which is in the
21    public interest. Accordingly, it is the intent of the
22    General Assembly that an electric utility that elects to
23    create a regulatory asset under the provisions of this
24    paragraph (1) Section shall recover all of the associated
25    costs, including, but not limited to, its cost of capital
26    as set forth in this paragraph (1) Section. After the

 

 

SB2408 Enrolled- 783 -LRB102 11366 BMS 16699 b

1    Commission has approved the prudence and reasonableness of
2    the costs that comprise the regulatory asset, the electric
3    utility shall be permitted to recover all such costs, and
4    the value and recoverability through rates of the
5    associated regulatory asset shall not be limited, altered,
6    impaired, or reduced. To enable the financing of the
7    incremental capital expenditures, including regulatory
8    assets, for electric utilities that serve less than
9    3,000,000 retail customers but more than 500,000 retail
10    customers in the State, the utility's actual year-end
11    capital structure that includes a common equity ratio,
12    excluding goodwill, of up to and including 50% of the
13    total capital structure shall be deemed reasonable and
14    used to set rates.
15        (2) The utility, at its election, may recover all of
16    the costs it incurs under this Section as part of a filing
17    for a general increase in rates under Article IX of this
18    Act, as part of an annual filing to update a
19    performance-based formula rate under subsection (d) of
20    Section 16-108.5 of this Act, or through an automatic
21    adjustment clause tariff, provided that nothing in this
22    paragraph (2) permits the double recovery of such costs
23    from customers. If the utility elects to recover the costs
24    it incurs under subsections (b) and (c) this Section
25    through an automatic adjustment clause tariff, the utility
26    may file its proposed tariff together with the tariff it

 

 

SB2408 Enrolled- 784 -LRB102 11366 BMS 16699 b

1    files under subsection (b) of this Section or at a later
2    time. The proposed tariff shall provide for an annual
3    reconciliation, less any deferred taxes related to the
4    reconciliation, with interest at an annual rate of return
5    equal to the utility's weighted average cost of capital as
6    calculated under paragraph (1) of this subsection (h),
7    including a revenue conversion factor calculated to
8    recover or refund all additional income taxes that may be
9    payable or receivable as a result of that return, of the
10    revenue requirement reflected in rates for each calendar
11    year, beginning with the calendar year in which the
12    utility files its automatic adjustment clause tariff under
13    this subsection (h), with what the revenue requirement
14    would have been had the actual cost information for the
15    applicable calendar year been available at the filing
16    date. The Commission shall review the proposed tariff and
17    may make changes to the tariff that are consistent with
18    this Section and with the Commission's authority under
19    Article IX of this Act, subject to notice and hearing.
20    Following notice and hearing, the Commission shall issue
21    an order approving, or approving with modification, such
22    tariff no later than 240 days after the utility files its
23    tariff.
24    (i) An electric utility shall recover from its retail
25customers, on a volumetric basis, all of the costs of the
26rebates made under a tariff or tariffs placed into effect

 

 

SB2408 Enrolled- 785 -LRB102 11366 BMS 16699 b

1under subsection (e) of this Section, including, but not
2limited to, the value of the rebates and all costs incurred by
3the utility to comply with and implement subsection (e) of
4this Section, consistent with the following provisions:
5        (1) The utility may defer a portion of its costs as a
6    regulatory asset. The Commission shall determine the
7    portion that may be appropriately deferred as a regulatory
8    asset. Factors that the Commission shall consider in
9    determining the portion of costs that shall be deferred as
10    a regulatory asset include, but are not limited to: (i)
11    whether and the extent to which a cost effectively
12    deferred or avoided other distribution system operating
13    costs or capital expenditures; (ii) the extent to which a
14    cost provides environmental benefits; (iii) the extent to
15    which a cost improves system reliability or resilience;
16    (iv) the electric utility's distribution system plan
17    developed pursuant to Section 16-105.17 of this Act; (v)
18    the extent to which a cost advances equity principles; and
19    (vi) such other factors as the Commission deems
20    appropriate. The remainder of costs shall be deemed an
21    operating expense and shall be recoverable if found
22    prudent and reasonable by the Commission.
23    The total costs deferred as a regulatory asset shall be
24amortized over a 15-year period. The unamortized balance shall
25be recognized as of December 31 for a given year. The utility
26shall also earn a return on the total of the unamortized

 

 

SB2408 Enrolled- 786 -LRB102 11366 BMS 16699 b

1balance of the regulatory assets, less any deferred taxes
2related to the unamortized balance, at an annual rate equal to
3the utility's weighted average cost of capital that includes,
4based on a year-end capital structure, the utility's actual
5cost of debt for the applicable calendar year and a cost of
6equity, which shall be calculated as the sum of: (I) the
7average for the applicable calendar year of the monthly
8average yields of 30-year U.S. Treasury bonds published by the
9Board of Governors of the Federal Reserve System in its weekly
10H.15 Statistical Release or successor publication; and (II)
11580 basis points, including a revenue conversion factor
12calculated to recover or refund all additional income taxes
13that may be payable or receivable as a result of that return.
14        (2) The utility may recover all of the costs through
15    an automatic adjustment clause tariff, on a volumetric
16    basis. The utility may file its proposed cost-recovery
17    tariff together with the tariff it files under subsection
18    (e) of this Section or at a later time. The proposed tariff
19    shall provide for an annual reconciliation, less any
20    deferred taxes related to the reconciliation, with
21    interest at an annual rate of return equal to the
22    utility's weighted average cost of capital as calculated
23    under paragraph (1) of this subsection (i), including a
24    revenue conversion factor calculated to recover or refund
25    all additional income taxes that may be payable or
26    receivable as a result of that return, of the revenue

 

 

SB2408 Enrolled- 787 -LRB102 11366 BMS 16699 b

1    requirement reflected in rates for each calendar year,
2    beginning with the calendar year in which the utility
3    files its automatic adjustment clause tariff under this
4    subsection (i), with what the revenue requirement would
5    have been had the actual cost information for the
6    applicable calendar year been available at the filing
7    date. The Commission shall review the proposed tariff and
8    may make changes to the tariff that are consistent with
9    this Section and with the Commission's authority under
10    Article IX of this Act, subject to notice and hearing.
11    Following notice and hearing, the Commission shall issue
12    an order approving, or approving with modification, such
13    tariff no later than 240 days after the utility files its
14    tariff.
15    (j) (i) No later than 90 days after the Commission enters
16an order, or order on rehearing, whichever is later, approving
17an electric utility's proposed tariff under subsection (d) of
18this Section, the electric utility shall provide notice of the
19availability of rebates under this Section. Subsequent to the
20utility's notice, any entity that offers in the State, for
21sale or lease, distributed generation and estimates the dollar
22saving attributable to such distributed generation shall
23provide estimates based on both delivery service credits and
24the rebates available under this Section.
25(Source: P.A. 99-906, eff. 6-1-17.)
 

 

 

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1    (220 ILCS 5/16-108)
2    Sec. 16-108. Recovery of costs associated with the
3provision of delivery and other services.
4    (a) An electric utility shall file a delivery services
5tariff with the Commission at least 210 days prior to the date
6that it is required to begin offering such services pursuant
7to this Act. An electric utility shall provide the components
8of delivery services that are subject to the jurisdiction of
9the Federal Energy Regulatory Commission at the same prices,
10terms and conditions set forth in its applicable tariff as
11approved or allowed into effect by that Commission. The
12Commission shall otherwise have the authority pursuant to
13Article IX to review, approve, and modify the prices, terms
14and conditions of those components of delivery services not
15subject to the jurisdiction of the Federal Energy Regulatory
16Commission, including the authority to determine the extent to
17which such delivery services should be offered on an unbundled
18basis. In making any such determination the Commission shall
19consider, at a minimum, the effect of additional unbundling on
20(i) the objective of just and reasonable rates, (ii) electric
21utility employees, and (iii) the development of competitive
22markets for electric energy services in Illinois.
23    (b) The Commission shall enter an order approving, or
24approving as modified, the delivery services tariff no later
25than 30 days prior to the date on which the electric utility
26must commence offering such services. The Commission may

 

 

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1subsequently modify such tariff pursuant to this Act.
2    (c) The electric utility's tariffs shall define the
3classes of its customers for purposes of delivery services
4charges. Delivery services shall be priced and made available
5to all retail customers electing delivery services in each
6such class on a nondiscriminatory basis regardless of whether
7the retail customer chooses the electric utility, an affiliate
8of the electric utility, or another entity as its supplier of
9electric power and energy. Charges for delivery services shall
10be cost based, and shall allow the electric utility to recover
11the costs of providing delivery services through its charges
12to its delivery service customers that use the facilities and
13services associated with such costs. Such costs shall include
14the costs of owning, operating and maintaining transmission
15and distribution facilities. The Commission shall also be
16authorized to consider whether, and if so to what extent, the
17following costs are appropriately included in the electric
18utility's delivery services rates: (i) the costs of that
19portion of generation facilities used for the production and
20absorption of reactive power in order that retail customers
21located in the electric utility's service area can receive
22electric power and energy from suppliers other than the
23electric utility, and (ii) the costs associated with the use
24and redispatch of generation facilities to mitigate
25constraints on the transmission or distribution system in
26order that retail customers located in the electric utility's

 

 

SB2408 Enrolled- 790 -LRB102 11366 BMS 16699 b

1service area can receive electric power and energy from
2suppliers other than the electric utility. Nothing in this
3subsection shall be construed as directing the Commission to
4allocate any of the costs described in (i) or (ii) that are
5found to be appropriately included in the electric utility's
6delivery services rates to any particular customer group or
7geographic area in setting delivery services rates.
8    (d) The Commission shall establish charges, terms and
9conditions for delivery services that are just and reasonable
10and shall take into account customer impacts when establishing
11such charges. In establishing charges, terms and conditions
12for delivery services, the Commission shall take into account
13voltage level differences. A retail customer shall have the
14option to request to purchase electric service at any delivery
15service voltage reasonably and technically feasible from the
16electric facilities serving that customer's premises provided
17that there are no significant adverse impacts upon system
18reliability or system efficiency. A retail customer shall also
19have the option to request to purchase electric service at any
20point of delivery that is reasonably and technically feasible
21provided that there are no significant adverse impacts on
22system reliability or efficiency. Such requests shall not be
23unreasonably denied.
24    (e) Electric utilities shall recover the costs of
25installing, operating or maintaining facilities for the
26particular benefit of one or more delivery services customers,

 

 

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1including without limitation any costs incurred in complying
2with a customer's request to be served at a different voltage
3level, directly from the retail customer or customers for
4whose benefit the costs were incurred, to the extent such
5costs are not recovered through the charges referred to in
6subsections (c) and (d) of this Section.
7    (f) An electric utility shall be entitled but not required
8to implement transition charges in conjunction with the
9offering of delivery services pursuant to Section 16-104. If
10an electric utility implements transition charges, it shall
11implement such charges for all delivery services customers and
12for all customers described in subsection (h), but shall not
13implement transition charges for power and energy that a
14retail customer takes from cogeneration or self-generation
15facilities located on that retail customer's premises, if such
16facilities meet the following criteria:
17        (i) the cogeneration or self-generation facilities
18    serve a single retail customer and are located on that
19    retail customer's premises (for purposes of this
20    subparagraph and subparagraph (ii), an industrial or
21    manufacturing retail customer and a third party contractor
22    that is served by such industrial or manufacturing
23    customer through such retail customer's own electrical
24    distribution facilities under the circumstances described
25    in subsection (vi) of the definition of "alternative
26    retail electric supplier" set forth in Section 16-102,

 

 

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1    shall be considered a single retail customer);
2        (ii) the cogeneration or self-generation facilities
3    either (A) are sized pursuant to generally accepted
4    engineering standards for the retail customer's electrical
5    load at that premises (taking into account standby or
6    other reliability considerations related to that retail
7    customer's operations at that site) or (B) if the facility
8    is a cogeneration facility located on the retail
9    customer's premises, the retail customer is the thermal
10    host for that facility and the facility has been designed
11    to meet that retail customer's thermal energy requirements
12    resulting in electrical output beyond that retail
13    customer's electrical demand at that premises, comply with
14    the operating and efficiency standards applicable to
15    "qualifying facilities" specified in title 18 Code of
16    Federal Regulations Section 292.205 as in effect on the
17    effective date of this amendatory Act of 1999;
18        (iii) the retail customer on whose premises the
19    facilities are located either has an exclusive right to
20    receive, and corresponding obligation to pay for, all of
21    the electrical capacity of the facility, or in the case of
22    a cogeneration facility that has been designed to meet the
23    retail customer's thermal energy requirements at that
24    premises, an identified amount of the electrical capacity
25    of the facility, over a minimum 5-year period; and
26        (iv) if the cogeneration facility is sized for the

 

 

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1    retail customer's thermal load at that premises but
2    exceeds the electrical load, any sales of excess power or
3    energy are made only at wholesale, are subject to the
4    jurisdiction of the Federal Energy Regulatory Commission,
5    and are not for the purpose of circumventing the
6    provisions of this subsection (f).
7If a generation facility located at a retail customer's
8premises does not meet the above criteria, an electric utility
9implementing transition charges shall implement a transition
10charge until December 31, 2006 for any power and energy taken
11by such retail customer from such facility as if such power and
12energy had been delivered by the electric utility. Provided,
13however, that an industrial retail customer that is taking
14power from a generation facility that does not meet the above
15criteria but that is located on such customer's premises will
16not be subject to a transition charge for the power and energy
17taken by such retail customer from such generation facility if
18the facility does not serve any other retail customer and
19either was installed on behalf of the customer and for its own
20use prior to January 1, 1997, or is both predominantly fueled
21by byproducts of such customer's manufacturing process at such
22premises and sells or offers an average of 300 megawatts or
23more of electricity produced from such generation facility
24into the wholesale market. Such charges shall be calculated as
25provided in Section 16-102, and shall be collected on each
26kilowatt-hour delivered under a delivery services tariff to a

 

 

SB2408 Enrolled- 794 -LRB102 11366 BMS 16699 b

1retail customer from the date the customer first takes
2delivery services until December 31, 2006 except as provided
3in subsection (h) of this Section. Provided, however, that an
4electric utility, other than an electric utility providing
5service to at least 1,000,000 customers in this State on
6January 1, 1999, shall be entitled to petition for entry of an
7order by the Commission authorizing the electric utility to
8implement transition charges for an additional period ending
9no later than December 31, 2008. The electric utility shall
10file its petition with supporting evidence no earlier than 16
11months, and no later than 12 months, prior to December 31,
122006. The Commission shall hold a hearing on the electric
13utility's petition and shall enter its order no later than 8
14months after the petition is filed. The Commission shall
15determine whether and to what extent the electric utility
16shall be authorized to implement transition charges for an
17additional period. The Commission may authorize the electric
18utility to implement transition charges for some or all of the
19additional period, and shall determine the mitigation factors
20to be used in implementing such transition charges; provided,
21that the Commission shall not authorize mitigation factors
22less than 110% of those in effect during the 12 months ended
23December 31, 2006. In making its determination, the Commission
24shall consider the following factors: the necessity to
25implement transition charges for an additional period in order
26to maintain the financial integrity of the electric utility;

 

 

SB2408 Enrolled- 795 -LRB102 11366 BMS 16699 b

1the prudence of the electric utility's actions in reducing its
2costs since the effective date of this amendatory Act of 1997;
3the ability of the electric utility to provide safe, adequate
4and reliable service to retail customers in its service area;
5and the impact on competition of allowing the electric utility
6to implement transition charges for the additional period.
7    (g) The electric utility shall file tariffs that establish
8the transition charges to be paid by each class of customers to
9the electric utility in conjunction with the provision of
10delivery services. The electric utility's tariffs shall define
11the classes of its customers for purposes of calculating
12transition charges. The electric utility's tariffs shall
13provide for the calculation of transition charges on a
14customer-specific basis for any retail customer whose average
15monthly maximum electrical demand on the electric utility's
16system during the 6 months with the customer's highest monthly
17maximum electrical demands equals or exceeds 3.0 megawatts for
18electric utilities having more than 1,000,000 customers, and
19for other electric utilities for any customer that has an
20average monthly maximum electrical demand on the electric
21utility's system of one megawatt or more, and (A) for which
22there exists data on the customer's usage during the 3 years
23preceding the date that the customer became eligible to take
24delivery services, or (B) for which there does not exist data
25on the customer's usage during the 3 years preceding the date
26that the customer became eligible to take delivery services,

 

 

SB2408 Enrolled- 796 -LRB102 11366 BMS 16699 b

1if in the electric utility's reasonable judgment there exists
2comparable usage information or a sufficient basis to develop
3such information, and further provided that the electric
4utility can require customers for which an individual
5calculation is made to sign contracts that set forth the
6transition charges to be paid by the customer to the electric
7utility pursuant to the tariff.
8    (h) An electric utility shall also be entitled to file
9tariffs that allow it to collect transition charges from
10retail customers in the electric utility's service area that
11do not take delivery services but that take electric power or
12energy from an alternative retail electric supplier or from an
13electric utility other than the electric utility in whose
14service area the customer is located. Such charges shall be
15calculated, in accordance with the definition of transition
16charges in Section 16-102, for the period of time that the
17customer would be obligated to pay transition charges if it
18were taking delivery services, except that no deduction for
19delivery services revenues shall be made in such calculation,
20and usage data from the customer's class shall be used where
21historical usage data is not available for the individual
22customer. The customer shall be obligated to pay such charges
23on a lump sum basis on or before the date on which the customer
24commences to take service from the alternative retail electric
25supplier or other electric utility, provided, that the
26electric utility in whose service area the customer is located

 

 

SB2408 Enrolled- 797 -LRB102 11366 BMS 16699 b

1shall offer the customer the option of signing a contract
2pursuant to which the customer pays such charges ratably over
3the period in which the charges would otherwise have applied.
4    (i) An electric utility shall be entitled to add to the
5bills of delivery services customers charges pursuant to
6Sections 9-221, 9-222 (except as provided in Section 9-222.1),
7and Section 16-114 of this Act, Section 5-5 of the Electricity
8Infrastructure Maintenance Fee Law, Section 6-5 of the
9Renewable Energy, Energy Efficiency, and Coal Resources
10Development Law of 1997, and Section 13 of the Energy
11Assistance Act.
12    (i-5) An electric utility required to impose the Coal to
13Solar and Energy Storage Initiative Charge provided for in
14subsection (c-5) of Section 1-75 of the Illinois Power Agency
15Act shall add such charge to the bills of its delivery services
16customers pursuant to the terms of a tariff conforming to the
17requirements of subsection (c-5) of Section 1-75 of the
18Illinois Power Agency Act and this subsection (i-5) and filed
19with and approved by the Commission. The electric utility
20shall file its proposed tariff with the Commission on or
21before July 1, 2022 to be effective, after review and approval
22or modification by the Commission, beginning January 1, 2023.
23On or before December 1, 2022, the Commission shall review the
24electric utility's proposed tariff, including by conducting a
25docketed proceeding if deemed necessary by the Commission, and
26shall approve the proposed tariff or direct the electric

 

 

SB2408 Enrolled- 798 -LRB102 11366 BMS 16699 b

1utility to make modifications the Commission finds necessary
2for the tariff to conform to the requirements of subsection
3(c-5) of Section 1-75 of the Illinois Power Agency Act and this
4subsection (i-5). The electric utility's tariff shall provide
5for imposition of the Coal to Solar and Energy Storage
6Initiative Charge on a per-kilowatthour basis to all
7kilowatthours delivered by the electric utility to its
8delivery services customers. The tariff shall provide for the
9calculation of the Coal to Solar and Energy Storage Initiative
10Charge to be in effect for the year beginning January 1, 2023
11and each year beginning January 1 thereafter, sufficient to
12collect the electric utility's estimated payment obligations
13for the delivery year beginning the following June 1 under
14contracts for purchase of renewable energy credits entered
15into pursuant to subsection (c-5) of Section 1-75 of the
16Illinois Power Agency Act and the obligations of the
17Department of Commerce and Economic Opportunity, or any
18successor department or agency, which for purposes of this
19subsection (i-5) shall be referred to as the Department, to
20make grant payments during such delivery year from the Coal to
21Solar and Energy Storage Initiative Fund pursuant to grant
22contracts entered into pursuant to subsection (c-5) of Section
231-75 of the Illinois Power Agency Act, and using the electric
24utility's kilowatthour deliveries to its delivery services
25customers during the delivery year ended May 31 of the
26preceding calendar year. On or before November 1 of each year

 

 

SB2408 Enrolled- 799 -LRB102 11366 BMS 16699 b

1beginning November 1, 2022, the Department shall notify the
2electric utilities of the amount of the Department's estimated
3obligations for grant payments during the delivery year
4beginning the following June 1 pursuant to grant contracts
5entered into pursuant to subsection (c-5) of Section 1-75 of
6the Illinois Power Agency Act; and each electric utility shall
7incorporate in the calculation of its Coal to Solar and Energy
8Storage Initiative Charge the fractional portion of the
9Department's estimated obligations equal to the electric
10utility's kilowatthour deliveries to its delivery services
11customers in the delivery year ended the preceding May 31
12divided by the aggregate deliveries of both electric utilities
13to delivery services customers in such delivery year. The
14electric utility shall remit on a monthly basis to the State
15Treasurer, for deposit in the Coal to Solar and Energy Storage
16Initiative Fund provided for in subsection (c-5) of Section
171-75 of the Illinois Power Agency Act, the electric utility's
18collections of the Coal to Solar and Energy Storage Initiative
19Charge estimated to be needed by the Department for grant
20payments pursuant to grant contracts entered into pursuant to
21subsection (c-5) of Section 1-75 of the Illinois Power Agency
22Act. The initial charge under the electric utility's tariff
23shall be effective for kilowatthours delivered beginning
24January 1, 2023, and thereafter shall be revised to be
25effective January 1, 2024 and each January 1 thereafter, based
26on the payment obligations for the delivery year beginning the

 

 

SB2408 Enrolled- 800 -LRB102 11366 BMS 16699 b

1following June 1. The tariff shall provide for the electric
2utility to make an annual filing with the Commission on or
3before November 15 of each year, beginning in 2023, setting
4forth the Coal to Solar and Energy Storage Initiative Charge
5to be in effect for the year beginning the following January 1.
6The electric utility's tariff shall also provide that the
7electric utility shall make a filing with the Commission on or
8before August 1 of each year beginning in 2024 setting forth a
9reconciliation, for the delivery year ended the preceding May
1031, of the electric utility's collections of the Coal to Solar
11and Energy Storage Initiative Charge against actual payments
12for renewable energy credits pursuant to contracts entered
13into, and the actual grant payments by the Department pursuant
14to grant contracts entered into, pursuant to subsection (c-5)
15of Section 1-75 of the Illinois Power Agency Act. The tariff
16shall provide that any excess or shortfall of collections to
17payments shall be deducted from or added to, on a
18per-kilowatthour basis, the Coal to Solar and Energy Storage
19Initiative Charge, over the 6-month period beginning October 1
20of that calendar year.
21    (j) If a retail customer that obtains electric power and
22energy from cogeneration or self-generation facilities
23installed for its own use on or before January 1, 1997,
24subsequently takes service from an alternative retail electric
25supplier or an electric utility other than the electric
26utility in whose service area the customer is located for any

 

 

SB2408 Enrolled- 801 -LRB102 11366 BMS 16699 b

1portion of the customer's electric power and energy
2requirements formerly obtained from those facilities
3(including that amount purchased from the utility in lieu of
4such generation and not as standby power purchases, under a
5cogeneration displacement tariff in effect as of the effective
6date of this amendatory Act of 1997), the transition charges
7otherwise applicable pursuant to subsections (f), (g), or (h)
8of this Section shall not be applicable in any year to that
9portion of the customer's electric power and energy
10requirements formerly obtained from those facilities,
11provided, that for purposes of this subsection (j), such
12portion shall not exceed the average number of kilowatt-hours
13per year obtained from the cogeneration or self-generation
14facilities during the 3 years prior to the date on which the
15customer became eligible for delivery services, except as
16provided in subsection (f) of Section 16-110.
17    (k) The electric utility shall be entitled to recover
18through tariffed charges all of the costs associated with the
19purchase of zero emission credits from zero emission
20facilities to meet the requirements of subsection (d-5) of
21Section 1-75 of the Illinois Power Agency Act and all of the
22costs associated with the purchase of carbon mitigation
23credits from carbon-free energy resources to meet the
24requirements of subsection (d-10) of Section 1-75 of the
25Illinois Power Agency Act. Such costs shall include the costs
26of procuring the zero emission credits and carbon mitigation

 

 

SB2408 Enrolled- 802 -LRB102 11366 BMS 16699 b

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

 

 

SB2408 Enrolled- 803 -LRB102 11366 BMS 16699 b

1associated with the self-direct renewable portfolio standard
2compliance program described in subparagraph (R) of paragraph
3(1) of subsection (c) of Section 1-75 of the Illinois Power
4Agency Act shall be allocated to approved eligible self-direct
5customers by the utility in a cents per kilowatt-hour credit,
6cost, or penalty, which shall appear as a separate line item on
7each such customer's bill.
8    Notwithstanding whether the Commission has approved the
9initial long-term renewable resources procurement plan as of
10June 1, 2017, an electric utility shall place new tariffed
11charges into effect beginning with the June 2017 monthly
12billing period, to the extent practicable, to begin recovering
13the costs of procuring renewable energy resources, as those
14charges are calculated under the limitations described in
15subparagraph (E) of paragraph (1) of subsection (c) of Section
161-75 of the Illinois Power Agency Act. Notwithstanding the
17date on which the utility places such new tariffed charges
18into effect, the utility shall be permitted to collect the
19charges under such tariff as if the tariff had been in effect
20beginning with the first day of the June 2017 monthly billing
21period. For the delivery years commencing June 1, 2017, June
221, 2018, and June 1, 2019, and each delivery year thereafter,
23the electric utility shall deposit into a separate interest
24bearing account of a financial institution the monies
25collected under the tariffed charges. Money collected from
26customers for the procurement of renewable energy resources in

 

 

SB2408 Enrolled- 804 -LRB102 11366 BMS 16699 b

1a given delivery year may be spent by the utility for the
2procurement of renewable resources over any of the following 5
3delivery years, after which unspent money shall be credited
4back to retail customers. The electric utility shall spend all
5money collected in earlier delivery years that has not yet
6been returned to customers, first, before spending money
7collected in later delivery years. Any interest earned shall
8be credited back to retail customers under the reconciliation
9proceeding provided for in this subsection (k), provided that
10the electric utility shall first be reimbursed from the
11interest for the administrative costs that it incurs to
12administer and manage the account. Any taxes due on the funds
13in the account, or interest earned on it, will be paid from the
14account or, if insufficient monies are available in the
15account, from the monies collected under the tariffed charges
16to recover the costs of procuring renewable energy resources.
17Monies deposited in the account shall be subject to the
18review, reconciliation, and true-up process described in this
19subsection (k) that is applicable to the funds collected and
20costs incurred for the procurement of renewable energy
21resources.
22    The electric utility shall be entitled to recover all of
23the costs identified in this subsection (k) through automatic
24adjustment clause tariffs applicable to all of the utility's
25retail customers that allow the electric utility to adjust its
26tariffed charges consistent with this subsection (k). The

 

 

SB2408 Enrolled- 805 -LRB102 11366 BMS 16699 b

1determination as to whether any excess funds were collected
2during a given delivery year for the purchase of renewable
3energy resources, and the crediting of any excess funds back
4to retail customers, shall not be made until after the close of
5the delivery year, which will ensure that the maximum amount
6of funds is available to implement the approved long-term
7renewable resources procurement plan during a given delivery
8year. The amount of excess funds eligible to be credited back
9to retail customers shall be reduced by an amount equal to the
10payment obligations required by any contracts entered into by
11an electric utility under contracts described in subsection
12(b) of Section 1-56 and subsection (c) of Section 1-75 of the
13Illinois Power Agency Act, even if such payments have not yet
14been made and regardless of the delivery year in which those
15payment obligations were incurred. Notwithstanding anything to
16the contrary, including in tariffs authorized by this
17subsection (k) in effect before the effective date of this
18amendatory Act of the 102nd General Assembly, all unspent
19funds as of May 31, 2021, excluding any funds credited to
20customers during any utility billing cycle that commences
21prior to the effective date of this amendatory Act of the 102nd
22General Assembly, shall remain in the utility account and
23shall on a first in, first out basis be used toward utility
24payment obligations under contracts described in subsection
25(b) of Section 1-56 and subsection (c) of Section 1-75 of the
26Illinois Power Agency Act. The electric utility's collections

 

 

SB2408 Enrolled- 806 -LRB102 11366 BMS 16699 b

1under such automatic adjustment clause tariffs to recover the
2costs of renewable energy resources, and zero emission credits
3from zero emission facilities, and carbon mitigation credits
4from carbon-free energy resources shall be subject to separate
5annual review, reconciliation, and true-up against actual
6costs by the Commission under a procedure that shall be
7specified in the electric utility's automatic adjustment
8clause tariffs and that shall be approved by the Commission in
9connection with its approval of such tariffs. The procedure
10shall provide that any difference between the electric
11utility's collections for zero emission credits and carbon
12mitigation credits under the automatic adjustment charges for
13an annual period and the electric utility's actual costs of
14renewable energy resources and zero emission credits from zero
15emission facilities and carbon mitigation credits from
16carbon-free energy resources for that same annual period shall
17be refunded to or collected from, as applicable, the electric
18utility's retail customers in subsequent periods.
19    Nothing in this subsection (k) is intended to affect,
20limit, or change the right of the electric utility to recover
21the costs associated with the procurement of renewable energy
22resources for periods commencing before, on, or after June 1,
232017, as otherwise provided in the Illinois Power Agency Act.
24    Notwithstanding anything to the contrary, the Commission
25shall not conduct an annual review, reconciliation, and
26true-up associated with renewable energy resources'

 

 

SB2408 Enrolled- 807 -LRB102 11366 BMS 16699 b

1collections and costs for the delivery years commencing June
21, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and
3shall instead conduct a single review, reconciliation, and
4true-up associated with renewable energy resources'
5collections and costs for the 4-year period beginning June 1,
62017 and ending May 31, 2021, provided that the review,
7reconciliation, and true-up shall not be initiated until after
8August 31, 2021. During the 4-year period, the utility shall
9be permitted to collect and retain funds under this subsection
10(k) and to purchase renewable energy resources under an
11approved long-term renewable resources procurement plan using
12those funds regardless of the delivery year in which the funds
13were collected during the 4-year period.
14    If the amount of funds collected during the delivery year
15commencing June 1, 2017, exceeds the costs incurred during
16that delivery year, then up to half of this excess amount, as
17calculated on June 1, 2018, may be used to fund the programs
18under subsection (b) of Section 1-56 of the Illinois Power
19Agency Act in the same proportion the programs are funded
20under that subsection (b). However, any amount identified
21under this subsection (k) to fund programs under subsection
22(b) of Section 1-56 of the Illinois Power Agency Act shall be
23reduced if it exceeds the funding shortfall. For purposes of
24this Section, "funding shortfall" means the difference between
25$200,000,000 and the amount appropriated by the General
26Assembly to the Illinois Power Agency Renewable Energy

 

 

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1Resources Fund during the period that commences on the
2effective date of this amendatory act of the 99th General
3Assembly and ends on August 1, 2018.
4    If the amount of funds collected during the delivery year
5commencing June 1, 2018, exceeds the costs incurred during
6that delivery year, then up to half of this excess amount, as
7calculated on June 1, 2019, may be used to fund the programs
8under subsection (b) of Section 1-56 of the Illinois Power
9Agency Act in the same proportion the programs are funded
10under that subsection (b). However, any amount identified
11under this subsection (k) to fund programs under subsection
12(b) of Section 1-56 of the Illinois Power Agency Act shall be
13reduced if it exceeds the funding shortfall.
14    If the amount of funds collected during the delivery year
15commencing June 1, 2019, exceeds the costs incurred during
16that delivery year, then up to half of this excess amount, as
17calculated on June 1, 2020, may be used to fund the programs
18under subsection (b) of Section 1-56 of the Illinois Power
19Agency Act in the same proportion the programs are funded
20under that subsection (b). However, any amount identified
21under this subsection (k) to fund programs under subsection
22(b) of Section 1-56 of the Illinois Power Agency Act shall be
23reduced if it exceeds the funding shortfall.
24    The funding available under this subsection (k), if any,
25for the programs described under subsection (b) of Section
261-56 of the Illinois Power Agency Act shall not reduce the

 

 

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

 

 

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

 

 

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

 

 

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1reduction shall be multiplied by the number of years reflected
2in the averages calculated under subparagraph (B) of paragraph
3(2) of this subsection (m). Such reduction shall be applied to
4the cents-per-kilowatthour charge that is applicable to those
5retail customers that have opted out of are exempt from
6subsections (a) through (j) of Section 8-103B of this Act
7under subsection (l) of Section 8-103B beginning with the next
8delivery year commencing after the date of the calculation
9required by this subsection (m).
10    (4) The electric utility shall file a notice with the
11Commission on May 1 of 2018 and each May 1 thereafter until May
121, 2026 containing the reduction, if any, which must be
13applied for the delivery year which begins in the year of the
14filing. The notice shall contain the calculations made
15pursuant to this Section. By October 1 of each year beginning
16in 2018, each electric utility shall notify the Commission if
17it appears, based on an estimate of the calculation required
18in this subsection (m), that a reduction will be required in
19the next year.
20(Source: P.A. 99-906, eff. 6-1-17.)
 
21    (220 ILCS 5/16-108.18 new)
22    Sec. 16-108.18. Performance-based ratemaking.
23    (a) The General Assembly finds:
24        (1) That improving the alignment of utility customer
25    and company interests is critical to ensuring equity,

 

 

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1    rapid growth of distributed energy resources, electric
2    vehicles, and other new technologies that substantially
3    change the makeup of the grid and protect Illinois
4    residents and businesses from potential economic and
5    environmental harm from the State's energy systems.
6        (2) There is urgency around addressing increasing
7    threats from climate change and assisting communities that
8    have borne disproportionate impacts from climate change,
9    including air pollution, greenhouse gas emissions, and
10    energy burdens. Addressing this problem requires changes
11    to the business model under which utilities in Illinois
12    have traditionally functioned.
13        (3) Providing targeted incentives to support change
14    through a new performance-based structure to enhance
15    ratemaking is intended to enable alignment of utility,
16    customer, community, and environmental goals.
17        (4) Though Illinois has taken some measures to move
18    utilities to performance-based ratemaking through the
19    establishment of performance incentives and a
20    performance-based formula rate under the Energy
21    Infrastructure Modernization Act, these measures have not
22    been sufficiently transformative in urgently moving
23    electric utilities toward the State's ambitious energy
24    policy goals: protecting a healthy environment and
25    climate, improving public health, and creating quality
26    jobs and economic opportunities, including wealth

 

 

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1    building, especially in economically disadvantaged
2    communities and communities of color.
3        (5) These measures were not developed through a
4    process to understand first what performance measures and
5    penalties would help drive the sought-after behavior by
6    the utilities.
7        (6) While the General Assembly has not made a finding
8    that the spending related to the Energy Infrastructure and
9    Modernization Act and its performance metrics was not
10    reasonable, it is important to address concerns that these
11    measures may have resulted in excess utility spending and
12    guaranteed profits without meaningful improvements in
13    customer experience, rate affordability, or equity.
14        (7) Discussions of performance incentive mechanisms
15    must always take into account the affordability of
16    customer rates and bills for all customers, including
17    low-income customers.
18        (8) The General Assembly therefore directs the
19    Illinois Commerce Commission to complete a transition that
20    includes a comprehensive performance-based regulation
21    framework for electric utilities serving more than 500,000
22    customers. The breadth of this framework should revise
23    existing utility regulations to position Illinois electric
24    utilities to effectively and efficiently achieve current
25    and anticipated future energy needs of this State, while
26    ensuring affordability for consumers.

 

 

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1    (b) As used in this Section:
2    "Commission" means the Illinois Commerce Commission.
3    "Demand response" means measures that decrease peak
4electricity demand or shift demand from peak to off-peak
5periods.
6    "Distributed energy resources" or "DER" means a wide range
7of technologies that are connected to the grid including those
8that are located on the customer side of the customer's
9electric meter and can provide value to the distribution
10system, including, but not limited to, distributed generation,
11energy storage, electric vehicles, and demand response
12technologies.
13    "Economically disadvantaged communities" means areas of
14one or more census tracts where average household income does
15not exceed 80% of area median income.
16    "Environmental justice communities" means the definition
17of that term as used and as may be updated in the long-term
18renewable resources procurement plan by the Illinois Power
19Agency and its Program Administrator in the Illinois Solar for
20All Program.
21    "Equity investment eligible community" means the
22geographic areas throughout Illinois which would most benefit
23from equitable investments by the State designed to combat
24discrimination. Specifically, the equity investment eligible
25communities shall be defined as the following areas:
26        (1) R3 Areas as established pursuant to Section 10-40

 

 

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1    of the Cannabis Regulation and Tax Act, where residents
2    have historically been excluded from economic
3    opportunities, including opportunities in the energy
4    sector; and
5        (2) Environmental justice communities, as defined by
6    the Illinois Power Agency pursuant to the Illinois Power
7    Agency Act, where residents have historically been subject
8    to disproportionate burdens of pollution, including
9    pollution from the energy sector.
10    "Performance incentive mechanism" means an instrument by
11which utility performance is incentivized, which could include
12a monetary performance incentive.
13    "Performance metric" means a manner of measurement for a
14particular utility activity.
15    (c) Through coordinated, comprehensive system planning,
16ratemaking, and performance incentives, the performance-based
17ratemaking framework should be designed to accomplish the
18following objectives:
19        (1) maintain and improve service reliability and
20    safety, including and particularly in environmental
21    justice, low-income and equity investment eligible
22    communities;
23        (2) decarbonize utility systems at a pace that meets
24    or exceeds State climate goals, while also ensuring the
25    affordability of rates for all customers, including
26    low-income customers;

 

 

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1        (3) direct electric utilities to make cost-effective
2    investments that support achievement of Illinois' clean
3    energy policies, including, at a minimum, investments
4    designed to integrate distributed energy resources, comply
5    with critical infrastructure protection standards, plans,
6    and industry best practices, and support and take
7    advantage of potential benefits from the electric vehicle
8    charging and other electrification, while mitigating the
9    impacts;
10        (4) choose cost-effective assets and services, whether
11    utility-supplied or through third-party contracting,
12    considering both economic and environmental costs and the
13    effects on utility rates, to deliver high-quality service
14    to customers at least cost;
15        (5) maintain the affordability of electric delivery
16    services for all customers, including low-income
17    customers;
18        (6) maintain and grow a diverse workforce, diverse
19    supplier procurement base and, for relevant programs,
20    diverse approved-vendor pools, including increased
21    opportunities for minority-owned, female-owned,
22    veteran-owned, and disability-owned business enterprises;
23        (7) improve customer service performance and
24    engagement;
25        (8) address the particular burdens faced by consumers
26    in environmental justice and equity investment eligible

 

 

SB2408 Enrolled- 818 -LRB102 11366 BMS 16699 b

1    communities, including shareholder, consumer, and publicly
2    funded bill payment assistance and credit and collection
3    policies, and ensure equitable disconnections, late fees,
4    or arrearages as a result of utility credit and collection
5    practices, which may include consideration of impact by
6    zip code; and
7        (9) implement or otherwise enhance current supplier
8    diversity programs to increase diverse contractor
9    participation in professional services, subcontracting,
10    and prime contracting opportunities with programs that
11    address barriers to access. Supplier diversity programs
12    shall address specific barriers related to RFP and
13    contract access, access to capital, information technology
14    and cyber security access and costs, administrative
15    burdens, and quality control with specific metrics,
16    outcomes, and demographic data reported.
17    (d) Multi-Year Rate Plan.
18        (1) If an electric utility had a performance-based
19    formula rate in effect under Section 16-108.5 as of
20    December 31, 2020, then the utility may file a petition
21    proposing tariffs implementing a 4-year Multi-Year Rate
22    Plan as provided in this Section no later than, January
23    20, 2023, for delivery service rates to be effective for
24    the billing periods January 1, 2024 through December 31,
25    2027. The Commission shall issue an order approving or
26    approving as modified the utility's plan no later than

 

 

SB2408 Enrolled- 819 -LRB102 11366 BMS 16699 b

1    December 20, 2023. The term "Multi-Year Rate Plan" refers
2    to a plan establishing the base rates the utility shall
3    charge for each delivery year of the 4-year period to be
4    covered by the plan, which shall be subject to
5    modification only as expressly allowed in this Section.
6        (2) A utility proposing a Multi-Year Rate Plan shall
7    provide a 4-year investment plan and a description of the
8    utility's major planned investments, including, at a
9    minimum, all investments of $2,000,000 or greater over the
10    plan period for an electric utility that serves more than
11    3,000,000 retail customers in the State or $500,000 for an
12    electric utility that serves less than 3,000,000 retail
13    customers in the State but more than 500,000 retail
14    customers in the State. The 4-year investment plan must be
15    consistent with the Multi-Year Integrated Grid Plan
16    described in Section 16-105.17 of this Act. The investment
17    plan shall provide sufficiently detailed information, as
18    required by the Commission, including, at a minimum, a
19    description of each investment, the location of the
20    investment, and an explanation of the need for and benefit
21    of such an investment to the extent known.
22        (3) The Multi-Year Rate Plan shall be implemented
23    through a tariff filed with the Commission consistent with
24    the provisions of this paragraph (3) that shall apply to
25    all delivery service customers. The Commission shall
26    initiate and conduct an investigation of the tariff in a

 

 

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1    manner consistent with the provisions of this paragraph
2    (3) and the provisions of Article IX of this Act, to the
3    extent they do not conflict with this paragraph (3). The
4    Multi-Year Rate Plan approved by the Commission shall do
5    the following:
6            (A) Provide for the recovery of the utility's
7        forecasted rate base, based on the 4-year investment
8        plan and the utility's Integrated Grid Plan. The
9        forecasted rate base must include the utility's
10        planned capital investments, with rates based on
11        average annual plant investment, and
12        investment-related costs, including income tax
13        impacts, depreciation, and ratemaking adjustments and
14        costs that are prudently incurred and reasonable in
15        amount consistent with Commission practice and law.
16        The process used to develop the forecasts must be
17        iterative, rigorous, and lead to forecasts that
18        reasonably represent the utility's investments during
19        the forecasted period and ensure that the investments
20        are projected to be used and useful during the annual
21        investment period and least cost, consistent with the
22        provisions of Articles VIII and IX of this Act.
23            (B) The cost of equity shall be approved by the
24        Commission consistent with Commission practice and
25        law.
26            (C) The revenue requirement shall reflect the

 

 

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1        utility's actual capital structure for the applicable
2        calendar year. A year-end capital structure that
3        includes a common equity ratio of up to and including
4        50% of the total capital structure shall be deemed
5        prudent and reasonable. A higher common equity ratio
6        must be specifically approved by the Commission.
7            (E) Provide for recovery of prudent and reasonable
8        projected operating expenses, giving effect to
9        ratemaking adjustments, consistent with Commission
10        practice and law under Article IX of this Act.
11        Operating expenses for years after the first year of
12        the Multi-Year Rate Plan may be estimated by the use of
13        known and measurable changes, expense reductions
14        associated with planned capital investments as
15        appropriate, and reasonable and appropriate
16        escalators, indices, or other metrics.
17            (F) Amortize the amount of unprotected
18        property-related excess accumulated deferred income
19        taxes in rates as of January 1, 2023 over a period
20        ending December 31, 2027, unless otherwise required to
21        amortize the excess deferred income tax pursuant to
22        Section 16-108.21 of this Act.
23            (G) Allow recovery of incentive compensation
24        expense that is based on the achievement of
25        operational metrics, including metrics related to
26        budget controls, outage duration and frequency,

 

 

SB2408 Enrolled- 822 -LRB102 11366 BMS 16699 b

1        safety, customer service, efficiency and productivity,
2        environmental compliance and attainment of
3        affordability and environmental goals, and other goals
4        and metrics approved by the Commission. Incentive
5        compensation expense that is based on net income or an
6        affiliate's earnings per share shall not be
7        recoverable.
8            (H) To the maximum extent practicable, align the
9        4-year investment plan and annual capital budgets with
10        the electric utility's Multi-Year Integrated Grid
11        Plan.
12        (4) The Commission shall establish annual rates for
13    each year of the Multi-Year Rate Plan that accurately
14    reflect and are based only upon the utility's reasonable
15    and prudent costs of service over the term of the plan,
16    including the effect of all ratemaking adjustments
17    consistent with Commission practice and law as determined
18    by the Commission, provided that the costs are not being
19    recovered elsewhere in rates. Tariff riders authorized by
20    the Commission may continue outside of a plan authorized
21    under this Section to the extent such costs are not
22    recovered elsewhere in rates. For the first multi-year
23    rate plan, the burden of proof shall be on the electric
24    utility to establish the prudence of investments and
25    expenditures and to establish that such investments
26    consistent with and reasonably necessary to meet the

 

 

SB2408 Enrolled- 823 -LRB102 11366 BMS 16699 b

1    requirements of the utility's first approved Multi-Year
2    Integrated Grid Plan described in Section 16-105.17 of
3    this Act. For subsequent Multi-Year Rate Plans, the burden
4    of proof shall be on the electric utility to establish the
5    prudence of investments and expenditures and to establish
6    that such investments are consistent with and reasonably
7    necessary to meet the requirements of the utility's most
8    recently approved Multi-Year Integrated Grid Plan
9    described in Section 16-105.17 of this Act. The sole fact
10    that a cost differs from that incurred in a prior period or
11    that an investment is different from that described in the
12    Multi-Year Integrated Grid Plan shall not imply the
13    imprudence or unreasonableness of that cost or investment.
14    The sole fact that an investment is the same or similar to
15    that described in the Multi-Year Integrated Grid Plan
16    shall not imply prudence and reasonableness of that
17    investment.
18        (5) To facilitate public transparency, all materials,
19    data, testimony, and schedules shall be provided to the
20    Commission in an editable, machine-readable electronic
21    format including .doc, .docx, .xls, .xlsx, and similar
22    file formats, but not including .pdf or .exif. Should
23    utilities designate any materials confidential, they shall
24    have an affirmative duty to explain why the particular
25    information is marked confidential. In determining
26    prudence and reasonableness of rates, the Commission shall

 

 

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1    make its determination based upon the record, including
2    each public comment filed or provided orally at open
3    meetings consistent with the Commission's rules and
4    practices.
5        (6) The Commission may, by order, establish terms,
6    conditions, and procedures for submitting and approving a
7    Multi-Year Rate Plan necessary to implement this Section
8    and ensure that rates remain just and reasonable during
9    the course of the plan, including terms and procedures for
10    rate adjustment.
11        (7) An electric utility that files a tariff pursuant
12    to paragraph (3) of this subsection (e) must submit a
13    one-time $300,000 filing fee at the time the Chief Clerk
14    of the Commission accepts the filing, which shall be a
15    recoverable expense.
16        (8) An electric utility operating under a Multi-Year
17    Rate Plan shall file a new Multi-Year Rate Plan at least
18    300 days prior to the end of the initial Multi-Year Rate
19    Plan unless it elects to file a general rate case pursuant
20    to paragraph (9), and every 4 years thereafter, with a
21    rate-effective date of the proposed tariffs such that,
22    after the Commission suspension period, the rates would
23    take effect immediately at the close of the final year of
24    the initial Multi-Year Rate Plan. In subsequent Multi-Year
25    Rate Plans, as in the initial plans, utilities and
26    stakeholders may propose additional metrics that achieve

 

 

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1    the outcomes described in paragraph (2) of subsection (f)
2    of this Section.
3        (9) Election of Rate Case.
4            (A) On or before the date prescribed by
5        subparagraph (B) of paragraph (9) of this Section,
6        electric utilities that serve more than 500,000 retail
7        customers in the State shall file either a general
8        rate case under Section 9-201 of this Act, or a
9        Multi-Year Rate Plan, as set forth in paragraph (1) of
10        this subsection (d).
11            (B) Electric utilities described in subparagraph
12        (A) of paragraph (9) of this Section shall file their
13        initial general rate case or Multi-Year Rate Plan, as
14        applicable, with the Commission no later than January
15        20, 2023.
16            (C) Notwithstanding which rate filing option an
17        electric utility elects to file on the date prescribed
18        by subparagraph (B) of paragraph (9) of this Section,
19        the electric utility shall be subject to the
20        Multi-year Integrated Plan filing requirements.
21            (D) Following its initial rate filing pursuant to
22        paragraph (2), an electric utility subject to the
23        requirements of this Section shall thereafter be
24        permitted to elect a different rate filing option
25        consistent with any filing intervals established for a
26        general rate case or Multi-Year Rate Plan, as follows:

 

 

SB2408 Enrolled- 826 -LRB102 11366 BMS 16699 b

1                (i) An electric utility that initially elected
2            to file a Multi-Year Rate Plan and thereafter
3            elects to transition to a general rate case may do
4            so upon completion of the 4-year Multi-Year Rate
5            Plan by filing a general rate case at the same time
6            that the utility would have filed its subsequent
7            Multi-Year Rate Plan, as specified in paragraph
8            (8) of this subsection (d). Notwithstanding this
9            election, the annual adjustment of the final year
10            of the Multi-Year Rate Plan shall proceed as
11            specified in paragraph (6) of subsection (f).
12                (ii) An electric utility that initially
13            elected to a file general rate case and thereafter
14            elects to transition to a Multi-Year Rate Plan may
15            do so only at the 4-year filing intervals
16            identified by paragraph (8) of this subsection
17            (d).
18        (10) The Commission shall approve tariffs establishing
19    rate design for all delivery service customers unless the
20    electric utility makes the election specified in Section
21    16-105.5, in which case the rate design shall be subject
22    to the provisions of that Section.
23        (11) The Commission shall establish requirements for
24    annual performance evaluation reports to be submitted
25    annually for performance metrics. Such reports shall
26    include, but not be limited to, a description of the

 

 

SB2408 Enrolled- 827 -LRB102 11366 BMS 16699 b

1    utility's performance under each metric and an
2    identification of any extraordinary events that adversely
3    affected the utility's performance.
4        (12) For the first Multi-Year Rate Plan, the
5    Commission shall consolidate its investigation with the
6    proceeding under Section 16-105.17 to establish the
7    Multi-Year Integrated Grid Plan no later than 45 days
8    after plan filing.
9        (13) Where a rate change under a Multi-Year Rate Plan
10    will result in a rate increase, an electric utility may
11    propose a rate phase-in plan that the Commission shall
12    approve with or without modification or deny in its final
13    order approving the new delivery services rates. A
14    proposed rate phase-in plan under this paragraph (13) must
15    allow the new delivery services rates to be implemented in
16    no more than 2 steps, as follows: in the first step, at
17    least 50% of the approved rate increase must be reflected
18    in rates, and, in the second step, 100% of the rate
19    increase must be reflected in rates. The second step's
20    rates must take effect no later than 12 months after the
21    first step's rates were placed into effect. The portion of
22    the approved rate increase not implemented in the first
23    step shall be recorded on the electric utility's books as
24    a regulatory asset, and shall accrue carrying costs to
25    ensure that the utility does not recover more or less than
26    it otherwise would because of the deferral. This portion

 

 

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1    shall be recovered, with such carrying costs at the
2    weighted average cost of capital, through a surcharge
3    applied to retail customer bills that (i) begins no later
4    than 12 months after the date on which the second step's
5    rates went into effect and (ii) is applied over a period
6    not to exceed 24 months. Nothing in this paragraph is
7    intended to limit the Commission's authority to mitigate
8    the impact of rates caused by rate plans, or any other
9    instance on a revenue-neutral basis; nor shall it mitigate
10    a utility's ability to make proposals to mitigate the
11    impact of rates. When a deferral, or similar method, is
12    used to mitigate the impact of rates, the utility should
13    be allowed to recover carrying costs.
14        (14) Notwithstanding the provisions of Section (13),
15    the Commission may, on its own initiative, take
16    revenue-neutral measures to relieve the impact of rate
17    increases on customers. Such initiatives may be taken by
18    the Commission in the first Multi-Year Rate Plan,
19    subsequent multi-year plans, or in other instances
20    described in this Act.
21        (15) Whenever during the pendency of a Multi-year Rate
22    Plan, an electric utility subject to this Section becomes
23    aware that, due to circumstances beyond its control,
24    prudent operating practices will require the utility to
25    make adjustments to the Multi-Year Rate Plan, the electric
26    utility may file a petition with the Commission requesting

 

 

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1    modification of the approved annual revenue requirements
2    included in the Multi-Year Rate Plan. The electric utility
3    must support its request with evidence demonstrating why a
4    modification is necessary, due to circumstances beyond the
5    utility's control, to follow prudent operating practices
6    and must set forth the changes to each annual revenue
7    requirement to be approved, and the basis for any changes
8    in anticipated operating expenses or capital investment
9    levels. The utility shall affirmatively address the impact
10    of the changes on the Multi-Year Integrated Grid Plan and
11    Multi-Year Rate Plan originally submitted and approved by
12    the Commission. Any interested party may file an objection
13    to the changes proposed, or offer alternatives to the
14    utility's proposal, as supported by testimony and
15    evidence. After notice and hearing, the Commission shall
16    issue a final order regarding the electric utility's
17    request no later than 180 days after the filing of the
18    petition.
19    (e) Performance incentive mechanisms.
20        (1) The electric industry is undergoing rapid
21    transformation, including fundamental changes in how
22    electricity is generated, procured, and delivered and how
23    customers are choosing to participate in the supply and
24    delivery of electricity to and from the electric grid.
25    Building upon the State's goals to increase the
26    procurement of electricity from renewable energy

 

 

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1    resources, including distributed generation and storage
2    devices, the General Assembly finds that electric
3    utilities should make cost-effective investments that
4    support moving forward on Illinois' clean energy policies.
5    It is therefore in the State's interest for the Commission
6    to establish performance incentive mechanisms in order to
7    better tie utility revenues to performance and customer
8    benefits, accelerate progress on Illinois energy and other
9    goals, ensure equity and affordability of rates for all
10    customers, including low-income customers, and hold
11    utilities publicly accountable.
12        (2) The Commission shall approve, based on the
13    substantial evidence proffered in the proceeding initiated
14    pursuant to this subsection performance metrics that, to
15    the extent practicable and achievable by the electric
16    utility, encourage cost-effective, equitable utility
17    achievement of the outcomes described in this subsection
18    (e) while ensuring no degradation in the significant
19    performance improvement achieved through previously
20    established performance metrics. For each electric
21    utility, the Commission shall approve metrics designed to
22    achieve incremental improvements over baseline performance
23    values and targets, over a performance period of up to 10
24    years, and no less than 4 years.
25            (A) The Commission shall approve no more than 8
26        metrics, with at least one metric from each of the

 

 

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1        categories below, for each electric utility, from
2        subparagraphs (i) through (vi) of this subsection (A).
3        Upon a utility request, the Commission may approve the
4        use of a specific, measurable, and achievable tracking
5        metric described in paragraph (3) of subsection (e) as
6        a performance metric pursuant to paragraph (2) of
7        subsection (e).
8                (i) Metrics designed to ensure the utility
9            maintains and improves the high standards of both
10            overall and locational reliability and resiliency,
11            and makes improvements in power quality, including
12            and particularly in environmental justice and
13            equity investment eligible communities.
14                (ii) Peak load reductions attributable to
15            demand response programs.
16                (iii) Supplier diversity expansion, including
17            diverse contractor participation in professional
18            services, subcontracting, and prime contracting
19            opportunities, development of programs that
20            address the barriers to access, aligning
21            demographics of contractors to the demographics in
22            the utility's service territory, establish
23            long-term mentoring relationships that develop and
24            remove barriers to access for diverse and
25            underserved contractors. The utilities shall
26            provide solutions, resources, and tools to address

 

 

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1            complex barriers of entry related to costly and
2            time-intensive cyber security requirements,
3            increasingly complex information technology
4            requirements, insurance barriers, service provider
5            sign-up process barriers, administrative process
6            barriers, and other barriers that inhibit access
7            to RFPs and contracts. For programs with contracts
8            over $1,000,000, winning bidders must demonstrate
9            a subcontractor development or mentoring
10            relationship with at least one of their diverse
11            subcontracting partners for a core component of
12            the scope of the project. The mentoring time and
13            cost shall be taken into account in the creation
14            of RFP and shall include a structured and measured
15            plan by the prime contractor to increase the
16            capabilities of the subcontractor in their
17            proposed scope. The metric shall include reporting
18            on all supplier diversity programs by goals,
19            program results, demographics and geography, with
20            separate reporting by category of minority-owned,
21            female-owned, veteran-owned, and disability-owned
22            business enterprise metrics. The report shall
23            include resources and expenses committed to the
24            programs and conversion rates of new diverse
25            utility contractors.
26                (iv) Achieve affordable customer delivery

 

 

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1            service costs, with particular emphasis on keeping
2            the bills of lower-income households, households
3            in equity investment eligible communities, and
4            household in environmental justice communities
5            within a manageable portion of their income and
6            adopting credit and collection policies that
7            reduce disconnections for these households
8            specifically and for customers overall to ensure
9            equitable disconnections, late fees, or arrearages
10            as a result of utility credit and collection
11            practices, which may include consideration of
12            impact by zip code.
13                (v) Metrics designed around the utility's
14            timeliness to customer requests for
15            interconnection in key milestone areas, such as:
16            initial response, supplemental review, and system
17            feasibility study; improved average service
18            reliability index for those customers that have
19            interconnected a distributed renewable energy
20            generation device to the utility's distribution
21            system and are lawfully taking service under an
22            applicable tariff; offering a variety of
23            affordable rate options, including demand
24            response, time of use rates for delivery and
25            supply, real-time pricing rates for supply;
26            comprehensive and predictable net metering, and

 

 

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1            maximizing the benefits of grid modernization and
2            clean energy for ratepayers; and improving
3            customer access to utility system information
4            according to consumer demand and interest.
5                (vi) Metrics designed to measure the utility's
6            customer service performance, which may include
7            the average length of time to answer a customer's
8            call by a customer service representative, the
9            abandoned call rate and the relative ranking of
10            the electric utility, by a reputable third-party
11            organization, in customer service satisfaction
12            when compared to other similar electric utilities
13            in the Midwest region.
14            (B) Performance metrics shall include a
15        description of the metric, a calculation method, a
16        data collection method, annual performance targets,
17        and any incentives or penalties for the utility's
18        achievement of, or failure to achieve, their
19        performance targets, provided that the total amount of
20        potential incentives and penalties shall be
21        symmetrical. Incentives shall be rewards or penalties
22        or both, reflected as basis points added to, or
23        subtracted from, the utility's cost of equity. The
24        metrics and incentives shall apply for the entire time
25        period covered by a Multi-Year Rate Plan. The total
26        for all metrics shall be equal to 40 basis points,

 

 

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1        however, the Commission may adjust the basis points
2        upward or downward by up to 20 basis points for any
3        given Multi-Year Rate Plan, as appropriate, but in no
4        event may the total exceed 60 basis points or fall
5        below 20 basis points.
6            (C) Metrics related to reliability shall be
7        implemented to ensure equitable benefits to
8        environmental justice and equity investment eligible
9        communities, as defined in this Act.
10            (D) The Commission shall approve performance
11        metrics that are reasonably within control of the
12        utility to achieve. The Commission also shall not
13        approve a metric that is solely expected to have the
14        effect of reducing the workforce. Performance metrics
15        should measure outcomes and actual, rather than
16        projected, results where possible. Nothing in this
17        paragraph is intended to require that different
18        electric utilities must be subject to the same
19        metrics, goals, or incentives.
20            (E) Increases or enhancements to an existing
21        performance goal or target shall be considered in
22        light of other metrics, cost-effectiveness, and other
23        factors the Commission deems appropriate. Performance
24        metrics shall include one year of tracking data
25        collected in a consistent manner, verifiable by an
26        independent evaluator in order to establish a baseline

 

 

SB2408 Enrolled- 836 -LRB102 11366 BMS 16699 b

1        and measure outcomes and actual results against
2        projections where possible.
3            (F) For the purpose of determining reasonable
4        performance metrics and related incentives, the
5        Commission shall develop a methodology to calculate
6        net benefits that includes customer and societal costs
7        and benefits and quantifies the effect on delivery
8        rates. In determining the appropriate level of a
9        performance incentive, the Commission shall consider:
10        the extent to which the amount is likely to encourage
11        the utility to achieve the performance target in the
12        least cost manner; the value of benefits to customers,
13        the grid, public health and safety, and the
14        environment from achievement of the performance
15        target, including in particular benefits to equity
16        investment eligible community; the affordability of
17        customer's electric bills, including low-income
18        customers, the utility's revenue requirement, the
19        promotion of renewable and distributed energy, and
20        other such factors that the Commission deems
21        appropriate. The consideration of these factors shall
22        result in an incentive level that ensures benefits
23        exceed costs for customers.
24            (G) Achievement of performance metrics are based
25        on the assumptions that the utility will adopt or
26        implement the technology and equipment, and make the

 

 

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1        investments to the extent reasonably necessary to
2        achieve the goal. If the electric utility is unable to
3        meet the performance metrics as a result of
4        extraordinary circumstances outside of its control,
5        including but not limited to government-declared
6        emergencies, then the utility shall be permitted to
7        file a petition with the Commission requesting that
8        the utility be excused from compliance with the
9        applicable performance goal or goals and the
10        associated financial incentives and penalties. The
11        burden of proof shall be on the utility, consistent
12        with Article IX, and the utility's petition shall be
13        supported by substantial evidence. The Commission
14        shall, after notice and hearing, enter its order
15        approving or denying, in whole or in part, the
16        utility's petition based on the extent to which the
17        utility demonstrated that its achievement of the
18        affected metrics and performance goals was hindered by
19        extraordinary circumstances outside of the utility's
20        control.
21        (3) The Commission shall approve reasonable and
22    appropriate tracking metrics to collect and monitor data
23    for the purpose of measuring and reporting utility
24    performance and for establishing future performance
25    metrics. These additional tracking metrics shall include
26    at least one metric from each of the following categories

 

 

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1    of performance:
2            (A) Minimize emissions of greenhouse gases and
3        other air pollutants that harm human health,
4        particularly in environmental justice and equity
5        investment eligible communities, through minimizing
6        total emissions by accelerating electrification of
7        transportation, buildings and industries where such
8        electrification results in net reductions, across all
9        fuels and over the life of electrification measures,
10        of greenhouse gases and other pollutants, taking into
11        consideration the fuel mix used to produce electricity
12        at the relevant hour and the effect of accelerating
13        electrification on electricity delivery services
14        rates, supply prices and peak demand, provided the
15        revenues the utility receives from accelerating
16        electrification of transportation, buildings and
17        industries exceed the costs.
18            (B) Enhance the grid's flexibility to adapt to
19        increased deployment of nondispatchable resources,
20        improve the ability and performance of the grid on
21        load balancing, and offer a variety of rate plans to
22        match consumer consumption patterns and lower consumer
23        bills for electricity delivery and supply.
24            (C) Ensure rates reflect cost savings attributable
25        to grid modernization and utilize distributed energy
26        resources that allow the utility to defer or forgo

 

 

SB2408 Enrolled- 839 -LRB102 11366 BMS 16699 b

1        traditional grid investments that would otherwise be
2        required to provide safe and reliable service.
3            (D) Metrics designed to create and sustain
4        full-time-equivalent jobs and opportunities for all
5        segments of the population and workforce, including
6        minority-owned businesses, women-owned businesses,
7        veteran-owned businesses, and businesses owned by a
8        person or persons with a disability, and that do not,
9        consistent with State and federal law, discriminate
10        based on race or socioeconomic status as a result of
11        this amendatory Act of the 102nd General Assembly.
12            (E) Maximize and prioritize the allocation of grid
13        planning benefits to environmental justice and
14        economically disadvantaged customers and communities,
15        such that all metrics provide equitable benefits
16        across the utility's service territory and maintain
17        and improve utility customers' access to uninterrupted
18        utility services.
19        (4) The Commission may establish new tracking and
20    performance metrics in future Multi-Year Rate Plans to
21    further measure achievement of the outcomes set forth in
22    paragraph (2) of subsection (f) of this Section and the
23    other goals and requirements of this Section.
24        (5) The Commission shall also evaluate metrics that
25    were established in prior Multi-Year Rate Plans to
26    determine if there has been an unanticipated material

 

 

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1    change in circumstances such that adjustments are required
2    to improve the likelihood of the outcomes described in
3    paragraph (2) of subsection (f). For metrics that were
4    established in prior Multi-Year Rate Plan proceedings and
5    that the Commission elects to continue, the design of
6    these metrics, including the goals of tracking metrics and
7    the targets and incentive levels and structures of
8    performance metrics, may be adjusted pursuant to the
9    requirements in this Section. The Commission may also
10    change, adjust or phase out tracking and performance
11    metrics that were established in prior Multi-Year Rate
12    Plan proceedings if these metrics no longer meet the
13    requirements of this Section or if they are rendered
14    obsolete by the changing needs and technology of an
15    evolving grid. Additionally, performance metrics that no
16    longer require an incentive to create improved utility
17    performance may become tracking metrics in a Multi-Year
18    Rate Plan proceeding.
19        (6) The Commission shall initiate a workshop process
20    no later than August 1, 2021, or 15 days after the
21    effective date of this amendatory Act of the 102nd General
22    Assembly, whichever is later, for the purpose of
23    facilitating the development of metrics for each utility.
24    The workshop shall be coordinated by the staff of the
25    Commission, or a facilitator retained by staff, and shall
26    be organized and facilitated in a manner that encourages

 

 

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1    representation from diverse stakeholders and ensures
2    equitable opportunities for participation, without
3    requiring formal intervention or representation by an
4    attorney. Working with staff of the Commission the
5    facilitator may conduct a combination of workshops
6    specific to a utility or applicable to multiple utilities
7    where content and stakeholders are substantially similar.
8    The workshop process shall conclude no later than October
9    31, 2021. Following the workshop, the staff of the
10    Commission, or the facilitator retained by the Staff,
11    shall prepare and submit a report to the Commission that
12    identifies the participants in the process, the metrics
13    proposed during the process, any material issues that
14    remained unresolved at the conclusions of such process,
15    and any recommendations for workshop process improvements.
16    Any workshop participant may file comments and reply
17    comments in response to the Staff report.
18            (A) No later than January, 20, 2022, each electric
19        utility that intends to file a petition pursuant to
20        subsection (b) of this Section shall file a petition
21        with the Commission seeking approval of its
22        performance metrics, which shall include for each
23        metric, at a minimum, (i) a detailed description, (ii)
24        the calculation of the baseline, (iii) the performance
25        period and overall performance goal, provided that the
26        performance period shall not commence prior to January

 

 

SB2408 Enrolled- 842 -LRB102 11366 BMS 16699 b

1        1, 2024, (iv) each annual performance goal, (v) the
2        performance adjustment, which shall be a symmetrical
3        basis point increase or decrease to the utility's cost
4        of equity based on the extent to which the utility
5        achieved the annual performance goal, and (vi) the new
6        or modified tariff mechanism that will apply the
7        performance adjustments. The Commission shall issue
8        its order approving, or approving with modification,
9        the utility's proposed performance metrics no later
10        than September 30, 2022.
11            (B) No later than August 1, 2025, the Commission
12        shall initiate a workshop process that conforms to the
13        workshop purpose and requirements of this paragraph
14        (6) of this Section to the extent they do not conflict.
15        The workshop process shall conclude no later than
16        October 31, 2025, and the staff of the Commission, or
17        the facilitator retained by the Staff, shall prepare
18        and submit a report consistent with the requirements
19        described in this paragraph (6) of this Section. No
20        later than January 20, 2026, each electric utility
21        subject to the requirements of this Section shall file
22        a petition the reflects, and is consistent with, the
23        components required in this paragraph (6) of this
24        Section, and the Commission shall issue its order
25        approving, or approving with modification, the
26        utility's proposed performance metrics no later than

 

 

SB2408 Enrolled- 843 -LRB102 11366 BMS 16699 b

1        September 30, 2026.
2    (f) On May 1 of each year, following the approval of the
3first Multi-Year Rate Plan and its initial year, the
4Commission shall open an annual performance evaluation
5proceeding to evaluate the utilities' performance on their
6metric targets during the year just completed, as well as the
7appropriate Annual Adjustment as defined in paragraph (6). The
8Commission shall determine the performance and annual
9adjustments to be applied through a surcharge in the following
10calendar year.
11        (1) On February 15 of each year, prior to the annual
12    performance evaluation proceeding, each utility shall file
13    a performance evaluation report with the Commission that
14    includes a description of and all data supporting how the
15    utility performed under each performance metric and an
16    identification of any extraordinary events that adversely
17    impacted the utility's performance.
18        (2) The metrics approved under this Section are based
19    on the assumptions that the utility may fully implement
20    the technology and equipment, and make the investments,
21    required to achieve the metrics and performance goals. If
22    the utility is unable to meet the metrics and performance
23    goals because it was hindered by unanticipated technology
24    or equipment implementation delays, government-declared
25    emergencies, or other investment impediments, then the
26    utility shall be permitted to file a petition with the

 

 

SB2408 Enrolled- 844 -LRB102 11366 BMS 16699 b

1    Commission on or before the date that its report is due
2    pursuant to paragraph (1) of this subsection (f)
3    requesting that the utility be excused from compliance
4    with the applicable performance goal or goals. The burden
5    of proof shall be on the utility, consistent with Article
6    IX, and the utility's petition shall be supported by
7    substantial evidence. No later than 90 days after the
8    utility files its petition, the Commission shall, after
9    notice and hearing, enter its order approving or denying,
10    in whole or in part, the utility's petition based on the
11    extent to which the utility demonstrated that its
12    achievement of the affected metrics and performance goals
13    was hindered by unanticipated technology or equipment
14    implementation delays, or other investment impediments,
15    that were reasonably outside of the utility's control.
16        (3) The electric utility shall provide for an annual
17    independent evaluation of its performance on metrics. The
18    independent evaluator shall review the utility's
19    assumptions, baselines, targets, calculation
20    methodologies, and other relevant information, especially
21    ensuring that the utility's data for establishing
22    baselines matches actual performance, and shall provide a
23    report to the Commission in each annual performance
24    evaluation describing the results. The independent
25    evaluator shall present this report as evidence as a
26    nonparty participant and shall not be represented by the

 

 

SB2408 Enrolled- 845 -LRB102 11366 BMS 16699 b

1    utility's legal counsel. The independent evaluator shall
2    be hired through a competitive bidding process with
3    approval of the contract by the Commission.
4        The Commission shall consider the report of the
5    independent evaluator in determining the utility's
6    achievement of performance targets. Discrepancies between
7    the utility's assumptions, baselines, targets, or
8    calculations and those of the independent evaluator shall
9    be closely scrutinized by the Commission. If the
10    Commission finds that the utility's reported data for any
11    metric or metrics significantly and incorrectly deviates
12    from the data reported by the independent evaluator, then
13    the Commission shall order the utility to revise its data
14    collection and calculation process within 60 days, with
15    specifications where appropriate.
16        (4) The Commission shall, after notice and hearing in
17    the annual performance evaluation proceeding, enter an
18    order approving the utility's performance adjustment based
19    on its achievement of or failure to achieve its
20    performance targets no later than December 20 each year.
21    The Commission-approved penalties or incentives shall be
22    applied beginning with the next calendar year.
23        (5) In order to promote the transparency of utility
24    investments during the effective period of a multi-year
25    rate plan, inform the Commission's investigation and
26    adjustment of rates in the annual adjustment process, and

 

 

SB2408 Enrolled- 846 -LRB102 11366 BMS 16699 b

1    to facilitate the participation of stakeholders in the
2    annual adjustment process, an electric utility with an
3    effective Multi-Year Rate Plan shall, within 90 days of
4    the close of each quarter during the Multi-Year Rate Plan
5    period, submit to the Commission a report that summarizes
6    the additions to utility plant that were placed into
7    service during the prior quarter, which for purposes of
8    the report shall be the most recently closed fiscal
9    quarter. The report shall also summarize the utility plant
10    the electric utility projects it will place into service
11    through the end of the calendar year in which the report is
12    filed. The projections, estimates, plans, and
13    forward-looking information that are provided in the
14    reports pursuant to this paragraph (5) are for planning
15    purposes and are intended to be illustrative of the
16    investments that the utility proposes to make as of the
17    time of submittal. Nothing in this paragraph (5)
18    precludes, or is intended to limit, a utility's ability to
19    modify and update its projections, estimates, plans, and
20    forward-looking information previously submitted in order
21    to reflect stakeholder input or other new or updated
22    information and analysis, including, but not limited to,
23    changes in specific investment needs, customer electric
24    use patterns, customer applications and preferences, and
25    commercially available equipment and technologies, however
26    the utility shall explain any changes or deviations

 

 

SB2408 Enrolled- 847 -LRB102 11366 BMS 16699 b

1    between the projected investments from the quarterly
2    reports and actual investments in the annual report. The
3    reports submitted pursuant to this subsection are intended
4    to be flexible planning tools, and are expected to evolve
5    as new information becomes available. Within 7 days of
6    receiving a quarterly report, the Commission shall timely
7    make such report available to the public by posting it on
8    the Commission's website. Each quarterly report shall
9    include the following detail:
10            (A) The total dollar value of the additions to
11        utility plant placed in service during the prior
12        quarter;
13            (B) A list of the major investment categories the
14        electric utility used to manage its routine standing
15        operational activities during the prior quarter
16        including the total dollar amount for the work
17        reflected in each investment category in which utility
18        plant in service is equal to or greater than
19        $2,000,000 for an electric utility that serves more
20        than 3,000,000 customers in the State or $500,000 for
21        an electric utility that serves less than 3,000,000
22        customers but more than 500,000 customers in the State
23        as of the last day of the quarterly reporting period,
24        as well as a summary description of each investment
25        category;
26            (C) A list of the projects which the electric

 

 

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

 

 

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1        retail customers but more than 500,000 retail
2        customers in the State, as well as a summary
3        description of each investment category; and
4            (F) A list of the projects for which the electric
5        utility has identified by a unique investment tracking
6        number for utility plant projected to be placed in
7        service through the end of the calendar year in which
8        the report is filed with an estimated dollar value
9        that is equal to or greater than $2,000,000 for an
10        electric utility that serves more than 3,000,000
11        customers in the State or $500,000 for an electric
12        utility that serves less than 3,000,000 retails
13        customers but more than $500,000 retail customers in
14        the State, as well as a summary description of each
15        project.
16        (6) As part of the Annual Performance Adjustment, the
17    electric utility shall submit evidence sufficient to
18    support a determination of its actual revenue requirement
19    for the applicable calendar year, consistent with the
20    provisions of paragraphs (d) and (f) of this subsection.
21    The electric utility shall bear the burden of
22    demonstrating that its costs were prudent and reasonable,
23    subject to the provisions of paragraph (4) of this
24    subsection (f). The Commission's review of the electric
25    utility's annual adjustment shall be based on the same
26    evidentiary standards, including, but not limited to,

 

 

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1    those concerning the prudence and reasonableness of the
2    known and measurable costs forecasted to be incurred by
3    the utility, and the used and usefulness of the actual
4    plant investment pursuant to Section 9-211 of this Act,
5    that the Commission applies in a proceeding to review a
6    filing for changes in rates pursuant to Section 9-201 of
7    this Act. The Commission shall determine the prudence and
8    reasonableness of the actual costs incurred by the utility
9    during the applicable calendar year, as well as determine
10    the original cost of plant in service as of the end of the
11    applicable calendar year. The Commission shall then
12    determine the Annual Adjustment, which shall mean the
13    amount by which, the electric utility's actual revenue
14    requirement for the applicable year of the Multi-Year Rate
15    Plan either exceeded, or was exceeded by, the revenue
16    requirement approved by the Commission for such calendar
17    year, plus carrying costs calculated at the weighted
18    average cost of capital approved for the Multi-Year Rate
19    Plan.
20        The Commission's determination of the electric
21    utility's actual revenue requirement for the applicable
22    calendar year shall be based on:
23            (A) the Commission-approved used and useful,
24        prudent and reasonable actual costs for the applicable
25        calendar year, which shall be determined pursuant to
26        the following criteria:

 

 

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1                (i) The overall level of actual costs incurred
2            during the calendar year, provided that the
3            Commission may not allow recovery of actual costs
4            that are more than 105% of the approved revenue
5            requirement calculated as provided in item (ii) of
6            this subparagraph (A), except to the extent the
7            Commission approves a modification of the
8            Multi-Year Rate Plan to permit such recovery.
9                (ii) The calculation of 105% of the revenue
10            requirement required by this subparagraph (A)
11            shall exclude the revenue requirement impacts of
12            the following volatile and fluctuating variables
13            that occurred during the year: (i) storms and
14            weather-related events for which the utility
15            provides sufficient evidence to demonstrate that
16            such expenses were not foreseeable and not in
17            control of the utility; (ii) new business; (iii)
18            changes in interest rates; (iv) changes in taxes;
19            (v) facility relocations; (vi) changes in pension
20            or post-retirement benefits costs due to
21            fluctuations in interest rates, market returns or
22            actuarial assumptions; (vii) amortization expenses
23            related to costs; and (viii) changes in the timing
24            of when an expenditure or investment is made such
25            that it is accelerated to occur during the
26            applicable year or deferred to occur in a

 

 

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1            subsequent year.
2            (B) the year-end rate base;
3            (C) the cost of equity approved in the multi-year
4        rate plan; and
5            (D) the electric utility's actual year-end capital
6        structure, provided that the common equity ratio in
7        such capital structure may not exceed the common
8        equity ratio that was approved by the Commission in
9        the Multi-Year Rate Plan.
10        (2) The Commission's determinations of the prudence
11    and reasonableness of the costs incurred for the
12    applicable year, and of the original cost of plant in
13    service as of the end of the applicable calendar year,
14    shall be final upon entry of the Commission's order and
15    shall not be subject to collateral attack in any other
16    Commission proceeding, case, docket, order, rule, or
17    regulation; however, nothing in this Section shall
18    prohibit a party from petitioning the Commission to rehear
19    or appeal to the courts the order pursuant to the
20    provisions of this Act.
21    (g) During the period leading to approval of the first
22Multi-Year Integrated Grid Plan, each electric utility will
23necessarily continue to invest in its distribution grid. Those
24investments will be subject to a determination of prudence and
25reasonableness consistent with Commission practice and law.
26Any failure to conform to the Multi-Year Integrated Grid Plan

 

 

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1ultimately approved shall not imply imprudence or
2unreasonableness.
3    (h) After calculating the Performance Adjustment and
4Annual Adjustment, the Commission shall order the electric
5utility to collect the amount in excess of the revenue
6requirement from customers, or issue a refund to customers, as
7applicable, to be applied through a surcharge beginning with
8the next calendar year.
9    Electric utilities subject to the requirements of this
10Section shall be permitted to file new or revised tariffs to
11comply with the provisions of, and Commission orders entered
12pursuant to, this Section.
 
13    (220 ILCS 5/16-108.19 new)
14    Sec. 16-108.19. Division of Integrated Distribution
15Planning.
16    (a) The Commission shall establish the Division of
17Integrated Distribution Planning within the Bureau of Public
18Utilities. The Division shall be staffed by no less than 13
19professionals, including engineers, rate analysts,
20accountants, policy analysts, utility research and analysis
21analysts, cybersecurity analysts, informational technology
22specialists, and lawyers to review and evaluate Integrated
23Grid Plans, updates to Integrated Grid Plans, audits, and
24other duties as assigned by the Chief of the Public Utilities
25Bureau.

 

 

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1    (b) The Division of Integrated Distribution Planning shall
2be established by January 1, 2022.
 
3    (220 ILCS 5/16-108.20 new)
4    Sec. 16-108.20. Cost-effectiveness incentive.
5    (a) The General Assembly finds that it is critical to
6maintain this focus on utility bill affordability as the State
7transitions to a clean energy economy. The General Assembly
8accordingly finds that it may be in the public interest to
9incentivize electric utilities to reduce spending where
10practicable and where such reduction will not have an adverse
11impact on the State's clean energy goals; this Act's
12overarching objectives of efficiency, environmental quality,
13reliability, and equity; or the utility's achievement on its
14metrics.
15    (b) In addition to the performance metrics established and
16approved by the Commission pursuant to Section 16-108.18 of
17this Act, the Commission may also determine whether each
18electric utility that serves more than 500,000 retail
19customers in the State may also be subject to a performance
20metric that incentivizes the utility to make cost-effective
21choices and stretch to achieve cost savings for public utility
22customers where it can do so without adverse impact (on
23efficiency, environmental quality, reliability or equity).
24    (c) The Commission shall initiate a docket on the subject
25of cost-effective shared savings, and shall make a

 

 

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1determination if it would be in the public interest and the
2best interest of electric utility customers to establish a
3performance metric that incentivizes utilities to reduce their
4costs while meeting all other performance metrics and
5addressing state goals as found in this Act.
6    (d) At the conclusion of the docket, if the Commission
7determines that such an incentive is in the best interest of
8consumers, the Commission shall have the authority to set a
9specific metric as part of the performance metric process
10pursuant to Section 16-108.18. Such metric shall include a
11determination of the percentage of the shared savings to be
12returned to the customers and to the utility. Such percentage
13shall be set so as to incentivize the utility to make savings,
14while providing substantial benefits to consumers.
 
15    (220 ILCS 5/16-108.21 new)
16    Sec. 16-108.21. Accelerated repayment of excess deferred
17income tax.
18    (a) The General Assembly finds:
19        (1) That a portion of each utility's compensation from
20    ratepayers is attributable to reimbursement for federal
21    taxes paid by the utility.
22        (2) Due to the enactment of the 2017 Tax Cut and Jobs
23    Act, the federal income tax rate for corporations was
24    lowered, resulting in excess deferred income tax for
25    distribution utilities in the State that serve more than

 

 

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1    100,000 customers.
2        (3) In proceedings before the Commission, it was
3    determined that the repayment period to ratepayers by the
4    utilities which serve more than 100,000 customers in this
5    State for this excess deferred income tax would be 39.5
6    years.
7        (4) The COVID-19 pandemic has harmed many customers of
8    all rate classes in the State, and resulted in the
9    Commission adopting a number of measures to provide relief
10    for customers.
11        (5) It would be in the interest of the State for the
12    repayment of the excess deferred income tax referenced in
13    Commission Dockets 19-0436, 19-0387, 20-0381, and 20-0393
14    to be paid back to ratepayers on a timetable greatly
15    accelerated from that set forth in the dockets.
16    (b) Notwithstanding the Commission Orders in Dockets
1719-0436, 19-0387, 20-0381, and 20-0382, the excess deferred
18income tax referenced in those dockets shall be fully refunded
19to ratepayers by the respective utilities no later than
20December 31, 2025.
21    (c) The Commission shall initiate a docket to provide for
22the refunding of these excess deferred income taxes to
23ratepayers of the utilities referenced in those dockets, and
24shall set forth any necessary provisions to accomplish the
25reimbursement on the schedule delineated in subsection (b).
 

 

 

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1    (220 ILCS 5/16-108.25 new)
2    Sec. 16-108.25. Tariff regarding transition in rates. Each
3electric utility that files a Multi-Year Rate Plan pursuant to
4Section 16-108.18 of this Act or a general rate case as
5described in this Act shall also file a tariff that sets forth
6the processes and procedures by which the electric utility
7will transition from its current rates and ratemaking
8mechanism to the new Multi-Year Rate Plan or a general rate
9case and rates that will take effect under that multi-year
10plan. The proposed tariff shall be consistent with the tariff
11approved by the Commission in Docket No. 20-0426 and covers
12the period until the new delivery rates are effective and all
13required processes and procedures described in the tariff have
14been completed.
15    Each electric utility subject to this Section shall file
16its proposed tariff no later than 30 days after the effective
17date of this amendatory Act of the 102nd General Assembly, and
18the Commission shall enter its order approving the tariff no
19later than 120 days after it was filed if the Commission finds
20that the proposed tariff is consistent with the tariff
21previously approved in Docket No. 20-0426 for the period until
22the new delivery rates are effective and all required
23processes and procedures described in the tariff have been
24completed. If the Commission does not so find, then the
25Commission shall approve the utility's tariff with those
26modifications that are required to make the proposed tariff

 

 

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1consistent with the tariff approved in Docket 20-0426 until
2the new delivery rates are effective and all required
3processes and procedures described in the tariff have been
4completed.
5    An electric utility that has a tariff in effect on the
6effective date of this amendatory Act of the 102nd General
7Assembly that provides for the transition from its current
8rates and ratemaking mechanism to new base rates approved
9pursuant to Article IX of this Act, shall file a compliance
10tariff modifying its existing tariff to comply with the
11provisions of this Section. The compliance tariff shall go
12into effect on 45 days' notice.
 
13    (220 ILCS 5/16-108.30 new)
14    Sec. 16-108.30. Energy Transition Assistance Fund.
15    (a) The Energy Transition Assistance Fund is hereby
16created as a special fund in the State Treasury. The Energy
17Transition Assistance Fund is authorized to receive moneys
18collected pursuant to this Section. Subject to appropriation,
19the Department of Commerce and Economic Opportunity shall use
20moneys from the Energy Transition Assistance Fund consistent
21with the purposes of this Act.
22    (b) An electric utility serving more than 500,000
23customers in the State shall assess an energy transition
24assistance charge on all its retail customers for the Energy
25Transition Assistance Fund. The utility's total charge shall

 

 

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1be set based upon the value determined by the Department of
2Commerce and Economic Opportunity pursuant to subsection (d)
3or (e), as applicable, of Section 605-1075 of the Department
4of Commerce and Economic Opportunity Law of the Civil
5Administrative Code of Illinois. For each utility, the charge
6shall be recovered through a single, uniform cents per
7kilowatt-hour charge applicable to all retail customers. For
8each utility, the charge shall not exceed 1.3% of the amount
9paid per kilowatthour by those customers during the year
10ending May 31, 2009.
11    (c) Within 75 days of the effective date of this
12amendatory Act of the 102nd General Assembly, each electric
13utility serving more than 500,000 customers in the State shall
14file with the Illinois Commerce Commission tariffs
15incorporating the energy transition assistance charge in other
16charges stated in such tariffs, which energy transition
17assistance charges shall become effective no later than the
18beginning of the first billing cycle that begins on or after
19January 1, 2022. Each electric utility serving more than
20500,000 customers in the State shall, prior to the beginning
21of each calendar year starting with calendar year 2023, file
22with the Illinois Commerce Commission tariff revisions to
23incorporate annual revisions to the energy transition
24assistance charge as prescribed by the Department of Commerce
25and Economic Opportunity pursuant to Section 605-1075 of the
26Department of Commerce and Economic Opportunity Law of the

 

 

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1Civil Administrative Code of Illinois so that such revision
2becomes effective no later than the beginning of the first
3billing cycle in each respective year.
4    (d) The energy transition assistance charge shall be
5considered a charge for public utility service.
6    (e) By the 20th day of the month following the month in
7which the charges imposed by this Section were collected, each
8electric utility serving more than 500,000 customers in the
9State shall remit to Department of Revenue all moneys received
10as payment of the energy transition assistance charge on a
11return prescribed and furnished by the Department of Revenue
12showing such information as the Department of Revenue may
13reasonably require. If a customer makes a partial payment, a
14public utility may apply such partial payments first to
15amounts owed to the utility. No customer may be subjected to
16disconnection of his or her utility service for failure to pay
17the energy transition assistance charge.
18    If any payment provided for in this subsection exceeds the
19electric utility's liabilities under this Act, as shown on an
20original return, the Department may authorize the electric
21utility to credit such excess payment against liability
22subsequently to be remitted to the Department under this Act,
23in accordance with reasonable rules adopted by the Department.
24    All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e,
255f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
26of the Retailers' Occupation Tax Act that are not inconsistent

 

 

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1with this Act apply, as far as practicable, to the charge
2imposed by this Act to the same extent as if those provisions
3were included in this Act. References in the incorporated
4Sections of the Retailers' Occupation Tax Act to retailers, to
5sellers, or to persons engaged in the business of selling
6tangible personal property mean persons required to remit the
7charge imposed under this Act.
8    (f) The Department of Revenue shall deposit into the
9Energy Transition Assistance Fund all moneys remitted to it in
10accordance with this Section.
11    (g) The Department of Revenue may establish such rules as
12it deems necessary to implement this Section.
13    (h) The Department of Commerce and Economic Opportunity
14may establish such rules as it deems necessary to implement
15this Section.
 
16    (220 ILCS 5/16-111.5)
17    Sec. 16-111.5. Provisions relating to procurement.
18    (a) An electric utility that on December 31, 2005 served
19at least 100,000 customers in Illinois shall procure power and
20energy for its eligible retail customers in accordance with
21the applicable provisions set forth in Section 1-75 of the
22Illinois Power Agency Act and this Section. Beginning with the
23delivery year commencing on June 1, 2017, such electric
24utility shall also procure zero emission credits from zero
25emission facilities in accordance with the applicable

 

 

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1provisions set forth in Section 1-75 of the Illinois Power
2Agency Act, and, for years beginning on or after June 1, 2017,
3the utility shall procure renewable energy resources in
4accordance with the applicable provisions set forth in Section
51-75 of the Illinois Power Agency Act and this Section.
6Beginning with the delivery year commencing on June 1, 2022,
7an electric utility serving over 3,000,000 customers shall
8also procure carbon mitigation credits from carbon-free energy
9resources in accordance with the applicable provisions set
10forth in Section 1-75 of the Illinois Power Agency Act and this
11Section. A small multi-jurisdictional electric utility that on
12December 31, 2005 served less than 100,000 customers in
13Illinois may elect to procure power and energy for all or a
14portion of its eligible Illinois retail customers in
15accordance with the applicable provisions set forth in this
16Section and Section 1-75 of the Illinois Power Agency Act.
17This Section shall not apply to a small multi-jurisdictional
18utility until such time as a small multi-jurisdictional
19utility requests the Illinois Power Agency to prepare a
20procurement plan for its eligible retail customers. "Eligible
21retail customers" for the purposes of this Section means those
22retail customers that purchase power and energy from the
23electric utility under fixed-price bundled service tariffs,
24other than those retail customers whose service is declared or
25deemed competitive under Section 16-113 and those other
26customer groups specified in this Section, including

 

 

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1self-generating customers, customers electing hourly pricing,
2or those customers who are otherwise ineligible for
3fixed-price bundled tariff service. For those customers that
4are excluded from the procurement plan's electric supply
5service requirements, and the utility shall procure any supply
6requirements, including capacity, ancillary services, and
7hourly priced energy, in the applicable markets as needed to
8serve those customers, provided that the utility may include
9in its procurement plan load requirements for the load that is
10associated with those retail customers whose service has been
11declared or deemed competitive pursuant to Section 16-113 of
12this Act to the extent that those customers are purchasing
13power and energy during one of the transition periods
14identified in subsection (b) of Section 16-113 of this Act.
15    (b) A procurement plan shall be prepared for each electric
16utility consistent with the applicable requirements of the
17Illinois Power Agency Act and this Section. For purposes of
18this Section, Illinois electric utilities that are affiliated
19by virtue of a common parent company are considered to be a
20single electric utility. Small multi-jurisdictional utilities
21may request a procurement plan for a portion of or all of its
22Illinois load. Each procurement plan shall analyze the
23projected balance of supply and demand for those retail
24customers to be included in the plan's electric supply service
25requirements over a 5-year period, with the first planning
26year beginning on June 1 of the year following the year in

 

 

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1which the plan is filed. The plan shall specifically identify
2the wholesale products to be procured following plan approval,
3and shall follow all the requirements set forth in the Public
4Utilities Act and all applicable State and federal laws,
5statutes, rules, or regulations, as well as Commission orders.
6Nothing in this Section precludes consideration of contracts
7longer than 5 years and related forecast data. Unless
8specified otherwise in this Section, in the procurement plan
9or in the implementing tariff, any procurement occurring in
10accordance with this plan shall be competitively bid through a
11request for proposals process. Approval and implementation of
12the procurement plan shall be subject to review and approval
13by the Commission according to the provisions set forth in
14this Section. A procurement plan shall include each of the
15following components:
16        (1) Hourly load analysis. This analysis shall include:
17            (i) multi-year historical analysis of hourly
18        loads;
19            (ii) switching trends and competitive retail
20        market analysis;
21            (iii) known or projected changes to future loads;
22        and
23            (iv) growth forecasts by customer class.
24        (2) Analysis of the impact of any demand side and
25    renewable energy initiatives. This analysis shall include:
26            (i) the impact of demand response programs and

 

 

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

 

 

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1            electric supply service requirements;
2                (B) at least satisfy the demand-response
3            requirements of the regional transmission
4            organization market in which the utility's service
5            territory is located, including, but not limited
6            to, any applicable capacity or dispatch
7            requirements;
8                (C) provide for customers' participation in
9            the stream of benefits produced by the
10            demand-response products;
11                (D) provide for reimbursement by the
12            demand-response provider of the utility for any
13            costs incurred as a result of the failure of the
14            supplier of such products to perform its
15            obligations thereunder; and
16                (E) meet the same credit requirements as apply
17            to suppliers of capacity, in the applicable
18            regional transmission organization market;
19            (iii) monthly forecasted system supply
20        requirements, including expected minimum, maximum, and
21        average values for the planning period;
22            (iv) the proposed mix and selection of standard
23        wholesale products for which contracts will be
24        executed during the next year, separately or in
25        combination, to meet that portion of its load
26        requirements not met through pre-existing contracts,

 

 

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1        including but not limited to monthly 5 x 16 peak period
2        block energy, monthly off-peak wrap energy, monthly 7
3        x 24 energy, annual 5 x 16 energy, other standardized
4        energy or capacity products designed to provide
5        eligible retail customer benefits from commercially
6        deployed advanced technologies including but not
7        limited to high voltage direct current converter
8        stations, as such term is defined in Section 1-10 of
9        the Illinois Power Agency Act, whether or not such
10        product is currently available in wholesale markets,
11        annual off-peak wrap energy, annual 7 x 24 energy,
12        monthly capacity, annual capacity, peak load capacity
13        obligations, capacity purchase plan, and ancillary
14        services;
15            (v) proposed term structures for each wholesale
16        product type included in the proposed procurement plan
17        portfolio of products; and
18            (vi) an assessment of the price risk, load
19        uncertainty, and other factors that are associated
20        with the proposed procurement plan; this assessment,
21        to the extent possible, shall include an analysis of
22        the following factors: contract terms, time frames for
23        securing products or services, fuel costs, weather
24        patterns, transmission costs, market conditions, and
25        the governmental regulatory environment; the proposed
26        procurement plan shall also identify alternatives for

 

 

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1        those portfolio measures that are identified as having
2        significant price risk and mitigation in the form of
3        additional retail customer and ratepayer price,
4        reliability, and environmental benefits from
5        standardized energy products delivered from
6        commercially deployed advanced technologies,
7        including, but not limited to, high voltage direct
8        current converter stations, as such term is defined in
9        Section 1-10 of the Illinois Power Agency Act, whether
10        or not such product is currently available in
11        wholesale markets.
12        (4) Proposed procedures for balancing loads. The
13    procurement plan shall include, for load requirements
14    included in the procurement plan, the process for (i)
15    hourly balancing of supply and demand and (ii) the
16    criteria for portfolio re-balancing in the event of
17    significant shifts in load.
18        (5) Long-Term Renewable Resources Procurement Plan.
19    The Agency shall prepare a long-term renewable resources
20    procurement plan for the procurement of renewable energy
21    credits under Sections 1-56 and 1-75 of the Illinois Power
22    Agency Act for delivery beginning in the 2017 delivery
23    year.
24            (i) The initial long-term renewable resources
25        procurement plan and all subsequent revisions shall be
26        subject to review and approval by the Commission. For

 

 

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

 

 

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1            plan shall:
2                    (aa) Identify the procurement programs and
3                competitive procurement events consistent with
4                the applicable requirements of the Illinois
5                Power Agency Act and shall be designed to
6                achieve the goals set forth in subsection (c)
7                of Section 1-75 of that Act.
8                    (bb) Include a schedule for procurements
9                for renewable energy credits from
10                utility-scale wind projects, utility-scale
11                solar projects, and brownfield site
12                photovoltaic projects consistent with
13                subparagraph (G) of paragraph (1) of
14                subsection (c) of Section 1-75 of the Illinois
15                Power Agency Act.
16                    (cc) Identify the process whereby the
17                Agency will submit to the Commission for
18                review and approval the proposed contracts to
19                implement the programs required by such plan.
20                Copies of the initial long-term renewable
21            resources procurement plan and all subsequent
22            revisions shall be posted and made publicly
23            available on the Agency's and Commission's
24            websites, and copies shall also be provided to
25            each affected electric utility. An affected
26            utility and other interested parties shall have 45

 

 

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

 

 

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1            its order confirming or modifying the initial
2            long-term renewable resources procurement plan or
3            any subsequent revisions within 120 days after the
4            filing of the plan by the Illinois Power Agency.
5                (D) The Commission shall approve the initial
6            long-term renewable resources procurement plan and
7            any subsequent revisions, including expressly the
8            forecast used in the plan and taking into account
9            that funding will be limited to the amount of
10            revenues actually collected by the utilities, if
11            the Commission determines that the plan will
12            reasonably and prudently accomplish the
13            requirements of Section 1-56 and subsection (c) of
14            Section 1-75 of the Illinois Power Agency Act. The
15            Commission shall also approve the process for the
16            submission, review, and approval of the proposed
17            contracts to procure renewable energy credits or
18            implement the programs authorized by the
19            Commission pursuant to a long-term renewable
20            resources procurement plan approved under this
21            Section.
22                In approving any long-term renewable resources
23            procurement plan after the effective date of this
24            amendatory Act of the 102nd General Assembly, the
25            Commission shall approve or modify the Agency's
26            proposal for minimum equity standards pursuant to

 

 

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1            subsection (c-10) of Section 1-75 of the Illinois
2            Power Agency Act. The Commission shall consider
3            any analysis performed by the Agency in developing
4            its proposal, including past performance,
5            availability of equity eligible contractors, and
6            availability of equity eligible persons at the
7            time the long-term renewable resources procurement
8            plan is approved.
9            (iii) The Agency or third parties contracted by
10        the Agency shall implement all programs authorized by
11        the Commission in an approved long-term renewable
12        resources procurement plan without further review and
13        approval by the Commission. Third parties shall not
14        begin implementing any programs or receive any payment
15        under this Section until the Commission has approved
16        the contract or contracts under the process authorized
17        by the Commission in item (D) of subparagraph (ii) of
18        paragraph (5) of this subsection (b) and the third
19        party and the Agency or utility, as applicable, have
20        executed the contract. For those renewable energy
21        credits subject to procurement through a competitive
22        bid process under the plan or under the initial
23        forward procurements for wind and solar resources
24        described in subparagraph (G) of paragraph (1) of
25        subsection (c) of Section 1-75 of the Illinois Power
26        Agency Act, the Agency shall follow the procurement

 

 

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1        process specified in the provisions relating to
2        electricity procurement in subsections (e) through (i)
3        of this Section.
4            (iv) An electric utility shall recover its costs
5        associated with the procurement of renewable energy
6        credits under this Section and pursuant to subsection
7        (c-5) of Section 1-75 of the Illinois Power Agency Act
8        through an automatic adjustment clause tariff under
9        subsection (k) or a tariff pursuant to subsection
10        (i-5), as applicable, of Section 16-108 of this Act. A
11        utility shall not be required to advance any payment
12        or pay any amounts under this Section that exceed the
13        actual amount of revenues collected by the utility
14        under paragraph (6) of subsection (c) of Section 1-75
15        of the Illinois Power Agency Act, subsection (c-5) of
16        Section 1-75 of the Illinois Power Agency Act, and
17        subsection (k) or subsection (i-5), as applicable, of
18        Section 16-108 of this Act, and contracts executed
19        under this Section shall expressly incorporate this
20        limitation.
21            (v) For the public interest, safety, and welfare,
22        the Agency and the Commission may adopt rules to carry
23        out the provisions of this Section on an emergency
24        basis immediately following the effective date of this
25        amendatory Act of the 99th General Assembly.
26            (vi) On or before July 1 of each year, the

 

 

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1        Commission shall hold an informal hearing for the
2        purpose of receiving comments on the prior year's
3        procurement process and any recommendations for
4        change.
5    (b-5) An electric utility that as of January 1, 2019
6served more than 300,000 retail customers in this State shall
7purchase renewable energy credits from new renewable energy
8facilities constructed at or adjacent to the sites of
9coal-fueled electric generating facilities in this State in
10accordance with subsection (c-5) of Section 1-75 of the
11Illinois Power Agency Act. Except as expressly provided in
12this Section, the plans and procedures for such procurements
13shall not be included in the procurement plans provided for in
14this Section, but rather shall be conducted and implemented
15solely in accordance with subsection (c-5) of Section 1-75 of
16the Illinois Power Agency Act.
17    (c) The provisions of this subsection (c) shall not apply
18to procurements conducted pursuant to subsection (c-5) of
19Section 1-75 of the Illinois Power Agency Act. However, the
20Agency may retain a procurement administrator to assist the
21Agency in planning and carrying out the procurement events and
22implementing the other requirements specified in such
23subsection (c-5) of Section 1-75 of the Illinois Power Agency
24Act, with the costs incurred by the Agency for the procurement
25administrator to be recovered through fees charged to
26applicants for selection to sell and deliver renewable energy

 

 

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1credits to electric utilities pursuant to subsection (c-5) of
2Section 1-75 of the Illinois Power Agency Act. The procurement
3process set forth in Section 1-75 of the Illinois Power Agency
4Act and subsection (e) of this Section shall be administered
5by a procurement administrator and monitored by a procurement
6monitor.
7        (1) The procurement administrator shall:
8            (i) design the final procurement process in
9        accordance with Section 1-75 of the Illinois Power
10        Agency Act and subsection (e) of this Section
11        following Commission approval of the procurement plan;
12            (ii) develop benchmarks in accordance with
13        subsection (e)(3) to be used to evaluate bids; these
14        benchmarks shall be submitted to the Commission for
15        review and approval on a confidential basis prior to
16        the procurement event;
17            (iii) serve as the interface between the electric
18        utility and suppliers;
19            (iv) manage the bidder pre-qualification and
20        registration process;
21            (v) obtain the electric utilities' agreement to
22        the final form of all supply contracts and credit
23        collateral agreements;
24            (vi) administer the request for proposals process;
25            (vii) have the discretion to negotiate to
26        determine whether bidders are willing to lower the

 

 

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1        price of bids that meet the benchmarks approved by the
2        Commission; any post-bid negotiations with bidders
3        shall be limited to price only and shall be completed
4        within 24 hours after opening the sealed bids and
5        shall be conducted in a fair and unbiased manner; in
6        conducting the negotiations, there shall be no
7        disclosure of any information derived from proposals
8        submitted by competing bidders; if information is
9        disclosed to any bidder, it shall be provided to all
10        competing bidders;
11            (viii) maintain confidentiality of supplier and
12        bidding information in a manner consistent with all
13        applicable laws, rules, regulations, and tariffs;
14            (ix) submit a confidential report to the
15        Commission recommending acceptance or rejection of
16        bids;
17            (x) notify the utility of contract counterparties
18        and contract specifics; and
19            (xi) administer related contingency procurement
20        events.
21        (2) The procurement monitor, who shall be retained by
22    the Commission, shall:
23            (i) monitor interactions among the procurement
24        administrator, suppliers, and utility;
25            (ii) monitor and report to the Commission on the
26        progress of the procurement process;

 

 

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1            (iii) provide an independent confidential report
2        to the Commission regarding the results of the
3        procurement event;
4            (iv) assess compliance with the procurement plans
5        approved by the Commission for each utility that on
6        December 31, 2005 provided electric service to at
7        least 100,000 customers in Illinois and for each small
8        multi-jurisdictional utility that on December 31, 2005
9        served less than 100,000 customers in Illinois;
10            (v) preserve the confidentiality of supplier and
11        bidding information in a manner consistent with all
12        applicable laws, rules, regulations, and tariffs;
13            (vi) provide expert advice to the Commission and
14        consult with the procurement administrator regarding
15        issues related to procurement process design, rules,
16        protocols, and policy-related matters; and
17            (vii) consult with the procurement administrator
18        regarding the development and use of benchmark
19        criteria, standard form contracts, credit policies,
20        and bid documents.
21    (d) Except as provided in subsection (j), the planning
22process shall be conducted as follows:
23        (1) Beginning in 2008, each Illinois utility procuring
24    power pursuant to this Section shall annually provide a
25    range of load forecasts to the Illinois Power Agency by
26    July 15 of each year, or such other date as may be required

 

 

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1    by the Commission or Agency. The load forecasts shall
2    cover the 5-year procurement planning period for the next
3    procurement plan and shall include hourly data
4    representing a high-load, low-load, and expected-load
5    scenario for the load of those retail customers included
6    in the plan's electric supply service requirements. The
7    utility shall provide supporting data and assumptions for
8    each of the scenarios.
9        (2) Beginning in 2008, the Illinois Power Agency shall
10    prepare a procurement plan by August 15th of each year, or
11    such other date as may be required by the Commission. The
12    procurement plan shall identify the portfolio of
13    demand-response and power and energy products to be
14    procured. Cost-effective demand-response measures shall be
15    procured as set forth in item (iii) of subsection (b) of
16    this Section. Copies of the procurement plan shall be
17    posted and made publicly available on the Agency's and
18    Commission's websites, and copies shall also be provided
19    to each affected electric utility. An affected utility
20    shall have 30 days following the date of posting to
21    provide comment to the Agency on the procurement plan.
22    Other interested entities also may comment on the
23    procurement plan. All comments submitted to the Agency
24    shall be specific, supported by data or other detailed
25    analyses, and, if objecting to all or a portion of the
26    procurement plan, accompanied by specific alternative

 

 

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1    wording or proposals. All comments shall be posted on the
2    Agency's and Commission's websites. During this 30-day
3    comment period, the Agency shall hold at least one public
4    hearing within each utility's service area for the purpose
5    of receiving public comment on the procurement plan.
6    Within 14 days following the end of the 30-day review
7    period, the Agency shall revise the procurement plan as
8    necessary based on the comments received and file the
9    procurement plan with the Commission and post the
10    procurement plan on the websites.
11        (3) Within 5 days after the filing of the procurement
12    plan, any person objecting to the procurement plan shall
13    file an objection with the Commission. Within 10 days
14    after the filing, the Commission shall determine whether a
15    hearing is necessary. The Commission shall enter its order
16    confirming or modifying the procurement plan within 90
17    days after the filing of the procurement plan by the
18    Illinois Power Agency.
19        (4) The Commission shall approve the procurement plan,
20    including expressly the forecast used in the procurement
21    plan, if the Commission determines that it will ensure
22    adequate, reliable, affordable, efficient, and
23    environmentally sustainable electric service at the lowest
24    total cost over time, taking into account any benefits of
25    price stability.
26        (4.5) The Commission shall review the Agency's

 

 

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1    recommendations for the selection of applicants to enter
2    into long-term contracts for the sale and delivery of
3    renewable energy credits from new renewable energy
4    facilities to be constructed at or adjacent to the sites
5    of coal-fueled electric generating facilities in this
6    State in accordance with the provisions of subsection
7    (c-5) of Section 1-75 of the Illinois Power Agency Act,
8    and shall approve the Agency's recommendations if the
9    Commission determines that the applicants recommended by
10    the Agency for selection, the proposed new renewable
11    energy facilities to be constructed, the amounts of
12    renewable energy credits to be delivered pursuant to the
13    contracts, and the other terms of the contracts, are
14    consistent with the requirements of subsection (c-5) of
15    Section 1-75 of the Illinois Power Agency Act.
16    (e) The procurement process shall include each of the
17following components:
18        (1) Solicitation, pre-qualification, and registration
19    of bidders. The procurement administrator shall
20    disseminate information to potential bidders to promote a
21    procurement event, notify potential bidders that the
22    procurement administrator may enter into a post-bid price
23    negotiation with bidders that meet the applicable
24    benchmarks, provide supply requirements, and otherwise
25    explain the competitive procurement process. In addition
26    to such other publication as the procurement administrator

 

 

SB2408 Enrolled- 882 -LRB102 11366 BMS 16699 b

1    determines is appropriate, this information shall be
2    posted on the Illinois Power Agency's and the Commission's
3    websites. The procurement administrator shall also
4    administer the prequalification process, including
5    evaluation of credit worthiness, compliance with
6    procurement rules, and agreement to the standard form
7    contract developed pursuant to paragraph (2) of this
8    subsection (e). The procurement administrator shall then
9    identify and register bidders to participate in the
10    procurement event.
11        (2) Standard contract forms and credit terms and
12    instruments. The procurement administrator, in
13    consultation with the utilities, the Commission, and other
14    interested parties and subject to Commission oversight,
15    shall develop and provide standard contract forms for the
16    supplier contracts that meet generally accepted industry
17    practices. Standard credit terms and instruments that meet
18    generally accepted industry practices shall be similarly
19    developed. The procurement administrator shall make
20    available to the Commission all written comments it
21    receives on the contract forms, credit terms, or
22    instruments. If the procurement administrator cannot reach
23    agreement with the applicable electric utility as to the
24    contract terms and conditions, the procurement
25    administrator must notify the Commission of any disputed
26    terms and the Commission shall resolve the dispute. The

 

 

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1    terms of the contracts shall not be subject to negotiation
2    by winning bidders, and the bidders must agree to the
3    terms of the contract in advance so that winning bids are
4    selected solely on the basis of price.
5        (3) Establishment of a market-based price benchmark.
6    As part of the development of the procurement process, the
7    procurement administrator, in consultation with the
8    Commission staff, Agency staff, and the procurement
9    monitor, shall establish benchmarks for evaluating the
10    final prices in the contracts for each of the products
11    that will be procured through the procurement process. The
12    benchmarks shall be based on price data for similar
13    products for the same delivery period and same delivery
14    hub, or other delivery hubs after adjusting for that
15    difference. The price benchmarks may also be adjusted to
16    take into account differences between the information
17    reflected in the underlying data sources and the specific
18    products and procurement process being used to procure
19    power for the Illinois utilities. The benchmarks shall be
20    confidential but shall be provided to, and will be subject
21    to Commission review and approval, prior to a procurement
22    event.
23        (4) Request for proposals competitive procurement
24    process. The procurement administrator shall design and
25    issue a request for proposals to supply electricity in
26    accordance with each utility's procurement plan, as

 

 

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1    approved by the Commission. The request for proposals
2    shall set forth a procedure for sealed, binding commitment
3    bidding with pay-as-bid settlement, and provision for
4    selection of bids on the basis of price.
5        (5) A plan for implementing contingencies in the event
6    of supplier default or failure of the procurement process
7    to fully meet the expected load requirement due to
8    insufficient supplier participation, Commission rejection
9    of results, or any other cause.
10            (i) Event of supplier default: In the event of
11        supplier default, the utility shall review the
12        contract of the defaulting supplier to determine if
13        the amount of supply is 200 megawatts or greater, and
14        if there are more than 60 days remaining of the
15        contract term. If both of these conditions are met,
16        and the default results in termination of the
17        contract, the utility shall immediately notify the
18        Illinois Power Agency that a request for proposals
19        must be issued to procure replacement power, and the
20        procurement administrator shall run an additional
21        procurement event. If the contracted supply of the
22        defaulting supplier is less than 200 megawatts or
23        there are less than 60 days remaining of the contract
24        term, the utility shall procure power and energy from
25        the applicable regional transmission organization
26        market, including ancillary services, capacity, and

 

 

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1        day-ahead or real time energy, or both, for the
2        duration of the contract term to replace the
3        contracted supply; provided, however, that if a needed
4        product is not available through the regional
5        transmission organization market it shall be purchased
6        from the wholesale market.
7            (ii) Failure of the procurement process to fully
8        meet the expected load requirement: If the procurement
9        process fails to fully meet the expected load
10        requirement due to insufficient supplier participation
11        or due to a Commission rejection of the procurement
12        results, the procurement administrator, the
13        procurement monitor, and the Commission staff shall
14        meet within 10 days to analyze potential causes of low
15        supplier interest or causes for the Commission
16        decision. If changes are identified that would likely
17        result in increased supplier participation, or that
18        would address concerns causing the Commission to
19        reject the results of the prior procurement event, the
20        procurement administrator may implement those changes
21        and rerun the request for proposals process according
22        to a schedule determined by those parties and
23        consistent with Section 1-75 of the Illinois Power
24        Agency Act and this subsection. In any event, a new
25        request for proposals process shall be implemented by
26        the procurement administrator within 90 days after the

 

 

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1        determination that the procurement process has failed
2        to fully meet the expected load requirement.
3            (iii) In all cases where there is insufficient
4        supply provided under contracts awarded through the
5        procurement process to fully meet the electric
6        utility's load requirement, the utility shall meet the
7        load requirement by procuring power and energy from
8        the applicable regional transmission organization
9        market, including ancillary services, capacity, and
10        day-ahead or real time energy, or both; provided,
11        however, that if a needed product is not available
12        through the regional transmission organization market
13        it shall be purchased from the wholesale market.
14        (6) The procurement processes process described in
15    this subsection and in subsection (c-5) of Section 1-75 of
16    the Illinois Power Agency Act are is exempt from the
17    requirements of the Illinois Procurement Code, pursuant to
18    Section 20-10 of that Code.
19    (f) Within 2 business days after opening the sealed bids,
20the procurement administrator shall submit a confidential
21report to the Commission. The report shall contain the results
22of the bidding for each of the products along with the
23procurement administrator's recommendation for the acceptance
24and rejection of bids based on the price benchmark criteria
25and other factors observed in the process. The procurement
26monitor also shall submit a confidential report to the

 

 

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1Commission within 2 business days after opening the sealed
2bids. The report shall contain the procurement monitor's
3assessment of bidder behavior in the process as well as an
4assessment of the procurement administrator's compliance with
5the procurement process and rules. The Commission shall review
6the confidential reports submitted by the procurement
7administrator and procurement monitor, and shall accept or
8reject the recommendations of the procurement administrator
9within 2 business days after receipt of the reports.
10    (g) Within 3 business days after the Commission decision
11approving the results of a procurement event, the utility
12shall enter into binding contractual arrangements with the
13winning suppliers using the standard form contracts; except
14that the utility shall not be required either directly or
15indirectly to execute the contracts if a tariff that is
16consistent with subsection (l) of this Section has not been
17approved and placed into effect for that utility.
18    (h) For the procurement of standard wholesale products,
19the names of the successful bidders and the load weighted
20average of the winning bid prices for each contract type and
21for each contract term shall be made available to the public at
22the time of Commission approval of a procurement event. For
23procurements conducted to meet the requirements of subsection
24(b) of Section 1-56 or subsection (c) of Section 1-75 of the
25Illinois Power Agency Act governed by the provisions of this
26Section, the address and nameplate capacity of the new

 

 

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1renewable energy generating facility proposed by a winning
2bidder shall also be made available to the public at the time
3of Commission approval of a procurement event, along with the
4business address and contact information for any winning
5bidder. An estimate or approximation of the nameplate capacity
6of the new renewable energy generating facility may be
7disclosed if necessary to protect the confidentiality of
8individual bid prices.
9    The Commission, the procurement monitor, the procurement
10administrator, the Illinois Power Agency, and all participants
11in the procurement process shall maintain the confidentiality
12of all other supplier and bidding information in a manner
13consistent with all applicable laws, rules, regulations, and
14tariffs. Confidential information, including the confidential
15reports submitted by the procurement administrator and
16procurement monitor pursuant to subsection (f) of this
17Section, shall not be made publicly available and shall not be
18discoverable by any party in any proceeding, absent a
19compelling demonstration of need, nor shall those reports be
20admissible in any proceeding other than one for law
21enforcement purposes. The names of the successful bidders and
22the load weighted average of the winning bid prices for each
23contract type and for each contract term shall be made
24available to the public at the time of Commission approval of a
25procurement event. The Commission, the procurement monitor,
26the procurement administrator, the Illinois Power Agency, and

 

 

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

 

 

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1procurement plan set forth in subsection (b); provided,
2however, that the Illinois Power Agency Act shall not apply to
3the initial procurement plan prepared pursuant to this
4subsection. The initial procurement plan shall identify the
5portfolio of power and energy products to be procured and
6delivered for the period June 2008 through May 2009, and shall
7identify the proposed procurement administrator, who shall
8have the same experience and expertise as is required of a
9procurement administrator hired pursuant to Section 1-75 of
10the Illinois Power Agency Act. Copies of the procurement plan
11shall be posted and made publicly available on the
12Commission's website. The initial procurement plan may include
13contracts for renewable resources that extend beyond May 2009.
14        (i) Within 14 days following filing of the initial
15    procurement plan, any person may file a detailed objection
16    with the Commission contesting the procurement plan
17    submitted by the electric utility. All objections to the
18    electric utility's plan shall be specific, supported by
19    data or other detailed analyses. The electric utility may
20    file a response to any objections to its procurement plan
21    within 7 days after the date objections are due to be
22    filed. Within 7 days after the date the utility's response
23    is due, the Commission shall determine whether a hearing
24    is necessary. If it determines that a hearing is
25    necessary, it shall require the hearing to be completed
26    and issue an order on the procurement plan within 60 days

 

 

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1    after the filing of the procurement plan by the electric
2    utility.
3        (ii) The order shall approve or modify the procurement
4    plan, approve an independent procurement administrator,
5    and approve or modify the electric utility's tariffs that
6    are proposed with the initial procurement plan. The
7    Commission shall approve the procurement plan if the
8    Commission determines that it will ensure adequate,
9    reliable, affordable, efficient, and environmentally
10    sustainable electric service at the lowest total cost over
11    time, taking into account any benefits of price stability.
12    (k) (Blank).
13    (k-5) (Blank).
14    (l) An electric utility shall recover its costs incurred
15under this Section and subsection (c-5) of Section 1-75 of the
16Illinois Power Agency Act, including, but not limited to, the
17costs of procuring power and energy demand-response resources
18under this Section and its costs for purchasing renewable
19energy credits pursuant to subsection (c-5) of Section 1-75 of
20the Illinois Power Agency Act. The utility shall file with the
21initial procurement plan its proposed tariffs through which
22its costs of procuring power that are incurred pursuant to a
23Commission-approved procurement plan and those other costs
24identified in this subsection (l), will be recovered. The
25tariffs shall include a formula rate or charge designed to
26pass through both the costs incurred by the utility in

 

 

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1procuring a supply of electric power and energy for the
2applicable customer classes with no mark-up or return on the
3price paid by the utility for that supply, plus any just and
4reasonable costs that the utility incurs in arranging and
5providing for the supply of electric power and energy. The
6formula rate or charge shall also contain provisions that
7ensure that its application does not result in over or under
8recovery due to changes in customer usage and demand patterns,
9and that provide for the correction, on at least an annual
10basis, of any accounting errors that may occur. A utility
11shall recover through the tariff all reasonable costs incurred
12to implement or comply with any procurement plan that is
13developed and put into effect pursuant to Section 1-75 of the
14Illinois Power Agency Act and this Section, and for the
15procurement of renewable energy credits pursuant to subsection
16(c-5) of Section 1-75 of the Illinois Power Agency Act,
17including any fees assessed by the Illinois Power Agency,
18costs associated with load balancing, and contingency plan
19costs. The electric utility shall also recover its full costs
20of procuring electric supply for which it contracted before
21the effective date of this Section in conjunction with the
22provision of full requirements service under fixed-price
23bundled service tariffs subsequent to December 31, 2006. All
24such costs shall be deemed to have been prudently incurred.
25The pass-through tariffs that are filed and approved pursuant
26to this Section shall not be subject to review under, or in any

 

 

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1way limited by, Section 16-111(i) of this Act. All of the costs
2incurred by the electric utility associated with the purchase
3of zero emission credits in accordance with subsection (d-5)
4of Section 1-75 of the Illinois Power Agency Act, all costs
5incurred by the electric utility associated with the purchase
6of carbon mitigation credits in accordance with subsection
7(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
8beginning June 1, 2017, all of the costs incurred by the
9electric utility associated with the purchase of renewable
10energy resources in accordance with Sections 1-56 and 1-75 of
11the Illinois Power Agency Act, and all of the costs incurred by
12the electric utility in purchasing renewable energy credits in
13accordance with subsection (c-5) of Section 1-75 of the
14Illinois Power Agency Act, shall be recovered through the
15electric utility's tariffed charges applicable to all of its
16retail customers, as specified in subsection (k) or subsection
17(i-5), as applicable, of Section 16-108 of this Act, and shall
18not be recovered through the electric utility's tariffed
19charges for electric power and energy supply to its eligible
20retail customers.
21    (m) The Commission has the authority to adopt rules to
22carry out the provisions of this Section. For the public
23interest, safety, and welfare, the Commission also has
24authority to adopt rules to carry out the provisions of this
25Section on an emergency basis immediately following August 28,
262007 (the effective date of Public Act 95-481).

 

 

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

 

 

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

 

 

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

 

 

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1distributed renewable energy generation devices.
2(Source: P.A. 99-906, eff. 6-1-17.)
 
3    (220 ILCS 5/16-111.10 new)
4    Sec. 16-111.10. Equitable Energy Upgrade Program.
5    (a) The General Assembly finds and declares that Illinois
6homes and businesses can contribute to the creation of a clean
7energy economy, conservation of natural resources, and
8reliability of the electricity grid through the installation
9of cost-effective renewable energy generation, energy
10efficiency and demand response equipment, and energy storage
11systems. Further, a large portion of Illinois residents and
12businesses that would benefit from the installation of energy
13efficiency, storage, and renewable energy generation systems
14are unable to purchase systems due to capital or credit
15barriers. This State should pursue options to enable many more
16Illinoisans to access the health, environmental, and financial
17benefits of new clean energy technology.
18    (b) As used in this Section:
19    "Commission" means the Illinois Commerce Commission.
20    "Energy project" means renewable energy generation
21systems, including solar projects, energy efficiency upgrades,
22energy storage systems, demand response equipment, or any
23combination thereof.
24    "Fund" means the Clean Energy Jobs and Justice Fund
25established in the Clean Energy Jobs and Justice Fund Act.

 

 

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1    "Program" means the Equitable Energy Upgrade Program
2established under subsection (c).
3    "Utility" means electric public utilities providing
4services to 500,000 or more customers under this Act.
5    (c) The Commission shall open an investigation into and
6direct all electric public utilities in this State to adopt an
7Equitable Energy Upgrade Program that permits customers to
8finance the construction of energy projects through an
9optional tariff payable directly through their utility bill,
10modeled after the Pay As You Save system, developed by the
11Energy Efficiency Institute. The Program model shall enable
12utilities to offer to make investments in energy projects to
13customer properties with low-cost capital and use an opt-in
14tariff to recover the costs. The Program shall be designed to
15provide customers with immediate financial savings if they
16choose to participate. The Program shall allow residential
17electric utility customers that own the property, or renters
18that have permission of the property owner, for which they
19subscribe to utility service to agree to the installation of
20an energy project. The Program shall ensure:
21        (1) eligible projects do not require upfront payments;
22    however, customers may pay down the costs for projects
23    with a payment to the installing contractor in order to
24    qualify projects that would otherwise require upfront
25    payments;
26        (2) eligible projects have sufficient estimated

 

 

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1    savings and estimated life span to produce significant,
2    immediate net savings;
3        (3) participants shall agree the utility can recover
4    its costs for the projects at their location by paying for
5    the project through an optional tariff directly through
6    the participant's electricity bill, allowing participants
7    to benefit from installation of energy projects without
8    traditional loans;
9        (4) accessibility by lower-income residents and
10    environmental justice community residents; and
11        (5) the utility must ensure that customers who are
12    interested in participating are notified that if they are
13    income qualified, they may also be eligible for the
14    Percentage of Income Payment Plan program and free energy
15    improvements through other programs and provide contact
16    information.
17    (d) The Commission shall establish Program guidelines with
18the anticipated schedule of Program availability as follows:
19        (1) Year 1: Beginning in the first year of operation,
20    each utility with greater than 100,000 retail customers is
21    required to obtain low-cost capital of at least
22    $20,000,000 annually for investments in energy projects.
23        (2) Year 2: Beginning in the second year of operation,
24    each utility with greater than 100,000 retail customers is
25    required to obtain low-cost capital for investments in
26    energy projects of at least $40,000,000 annually.

 

 

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1        (3) Year 3: Beginning in the third year of operation,
2    each utility with greater than 100,000 retail customers is
3    required to obtain low-cost capital for investments in as
4    many systems as customers demand, subject to available
5    capital provided by the utility, State, or other lenders.
6    (e) In the design of the Program, the Commission shall:
7        (1) Within 270 days after the effective date of this
8    amendatory Act of the 102nd General Assembly, convene a
9    workshop during which interested participants may discuss
10    issues and submit comments related to the Program.
11        (2) Establish Program guidelines for implementation of
12    the Program in accordance with the Pay As You Save
13    Essential Elements and Minimum Program Requirements that
14    electric utilities must abide by when implementing the
15    Program. Program guidelines established by the Commission
16    shall include the following elements:
17            (A) The Commission shall establish conditions
18        under which utilities secure capital to fund the
19        energy projects. The Commission may allow utilities to
20        raise capital independently, work with third-party
21        lenders to secure the capital for participants, or a
22        combination thereof. Any process the Commission
23        approves must use a market mechanism to identify the
24        least costly sources of capital funds so as to pass on
25        maximum savings to participants. The State or the
26        Clean Energy Jobs and Justice Fund may also provide

 

 

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1        capital for the Program.
2            (B) Customer protection guidelines should be
3        designed consistent with Pay As You Save Essential
4        Elements and Minimum Program Requirements.
5            (C) The Commission shall establish conditions by
6        which utilities may connect Program participants to
7        energy project vendors. In setting conditions for
8        connection, the Commission may prioritize vendors that
9        have a history of good relations with the State,
10        including vendors that have hired participants from
11        State-created job training programs.
12            (D) Guarantee that conservative estimates of
13        financial savings will immediately and significantly
14        exceed Program costs for Program participants.
15    (f) Within 120 days after the Commission releases the
16Program conditions established under this Section, each
17utility subject to the requirements of this Section shall
18submit an informational filing to the Commission that
19describes its plan for implementing the provisions of this
20Section. If the Commission finds that the submission does not
21properly comply with the statutory or regulatory requirements
22of the Program, the Commission may require that the utility
23make modifications to its filing.
24    (g) An independent process evaluation shall be conducted
25after one year of the Program's operation. An independent
26impact evaluation shall be conducted after 3 years of

 

 

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1operation, excluding one-time startup costs and results from
2the first 12 months of the Program. The Commission shall
3convene an advisory council of stakeholders, including
4representation of low-income and environmental justice
5community members to make recommendations in response to the
6findings of the independent evaluation.
7    (h) The Program shall be designed using the Pay As You Save
8system guidelines to be cost-effective for customers. Only
9projects that are deemed to be cost-effective and can be
10reasonably expected to ensure customer savings are eligible
11for funding through the Program, unless, as specified in
12paragraph (1) of subsection (c), customers able to make
13upfront copayments to installers buy down the cost of projects
14so it can be deemed cost-effective.
15    (i) Eligible customers must be:
16        (1) property renters with permission of the property
17    owner; or
18        (2) property owners.
19    (j) The calculation of project cost-effectiveness shall be
20based upon the Pay As You Save system requirements.
21        (1) The calculation of cost-effectiveness must be
22    conducted by an objective process approved by the
23    Commission and based on rates in effect at the time of
24    installation.
25        (2) A project shall be considered cost-effective only
26    if it is estimated to produce significant immediate net

 

 

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1    savings, not counting copayments voluntarily made by
2    customers. The Commission may establish guidelines by
3    which this required savings is estimated.
4    (k) The Program should be modeled after the Pay As You Save
5system, by which Program participants finance energy projects
6using the savings that the energy project creates with a
7tariffed on-bill program. Eligible projects shall not create
8personal debt for the customer, result in a lien in the event
9of nonpayment, or require customers to pay monthly charges for
10any upgrade that fails and is not repaired within 21 days. The
11utility may restart charges once the upgrade is repaired and
12functioning and extend the term of payments to recover its
13costs for missed payments and deferred cost recovery,
14providing the upgrade continues to function.
15    (l) Any energy project that is defective or damaged due to
16no fault of the participant must be either replaced or
17repaired with parts that meet industry standards at the cost
18of the utility or vendor, as specified by the Commission, and
19charges shall be suspended until repairs or replacement is
20completed. The Commission may establish, increase, or replace
21the requirements imposed in this subsection. The Commission
22may determine that this responsibility is best handled by
23participating project vendors in the form of insurance,
24contractual guarantees, or other mechanisms, and issue rules
25detailing this requirement. Customers shall not be charged
26monthly payments for upgrades that are no longer functioning.

 

 

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1    (m) In the event of nonpayment, the remaining balance due
2to pay off the system shall remain with the utility meter at an
3upgraded location. The Commission shall establish conditions
4subject to this constraint in the event of nonpayment that are
5in accordance with the Pay As You Save system.
6    (n) If the demand by utility customers exceeds the Program
7capital supply in a given year, utilities shall ensure that
850% of participants are:
9        (1) customers in neighborhoods where a majority of
10    households make 150% or less of area median income; or
11        (2) residents of environmental justice communities.
12    (o) Utilities shall endeavor to inform customers about the
13availability of the Program, their potential eligibility for
14participation in the Program, and whether they are likely to
15save money on the basis of an estimate conducted using
16variables consistent with the Program that the utility has at
17its disposal. The Commission may establish guidelines by which
18utilities must abide by this directive and alternatives if the
19Commission deems utilities' efforts as inadequate.
20    (p) Subject to Commission specifications under subsection
21(c), each utility shall work with certified project vendors
22selected using a request for proposals process to establish
23the terms and processes under which a utility can install
24eligible renewable energy generation and energy storage
25systems using the capital to fit the Equitable Energy Upgrade
26model. The certified project vendor shall explain and offer

 

 

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1the approved upgrades to customers and shall assist customers
2in applying for financing through the Program. As part of the
3process, vendors shall also provide participants with
4information about any other relevant incentives that may be
5available.
6    (q) An electric utility shall recover all of the prudently
7incurred costs of offering a program approved by the
8Commission under this Section. For investor-owned utilities,
9shareholder incentives will be proportional to meeting
10Commission approved thresholds for the number of customers
11served and the amount of its investments in those locations.
12    (r) The Commission shall adopt all rules necessary for the
13administration of this Section.
 
14    (220 ILCS 5/16-127)
15    Sec. 16-127. Environmental disclosure.
16    (a) Every Effective January 1, 2013, every electric
17utility and alternative retail electric supplier shall provide
18the following information, to the maximum extent practicable,
19to its customers on a quarterly basis:
20        (i) the known sources of electricity supplied,
21    broken-out by percentages, of biomass power, coal-fired
22    power, hydro power, natural gas-fired power, nuclear
23    power, oil-fired power, solar power, wind power and other
24    resources, respectively;
25        (ii) a pie chart that graphically depicts the

 

 

SB2408 Enrolled- 906 -LRB102 11366 BMS 16699 b

1    percentages of the sources of the electricity supplied as
2    set forth in subparagraph (i) of this subsection;
3        (iii) a pie chart that graphically depicts the
4    quantity of renewable energy resources procured pursuant
5    to Section 1-75 of the Illinois Power Agency Act as a
6    percentage of electricity supplied to serve eligible
7    retail customers as defined in Section 16-111.5(a) of this
8    Act; and
9        (iv) after May, 31, 2017, a pie chart that graphically
10    depicts the quantity of zero emission credits from zero
11    emission facilities procured under Section 1-75 of the
12    Illinois Power Agency Act as a percentage of the actual
13    load of retail customers within its service area and, for
14    an electric utility serving over 3,000,000 customers, the
15    quantity of carbon mitigation credits from carbon-free
16    energy resources procured under Section 1-75 of the
17    Illinois Power Agency Act, which may be depicted in
18    combination with the zero emission credits procured.
19    (b) In addition, every electric utility and alternative
20retail electric supplier shall provide, to the maximum extent
21practicable, to its customers on a quarterly basis, a
22standardized chart in a format to be determined by the
23Commission in a rule following notice and hearings which
24provides the amounts of carbon dioxide, nitrogen oxides and
25sulfur dioxide emissions and nuclear waste attributable to the
26known sources of electricity supplied as set forth in

 

 

SB2408 Enrolled- 907 -LRB102 11366 BMS 16699 b

1subparagraph (i) of subsection (a) of this Section.
2    (c) The electric utilities and alternative retail electric
3suppliers may provide their customers with such other
4information as they believe relevant to the information
5required in subsections (a) and (b) of this Section. All of the
6information required in subsections (a) and (b) of this
7Section shall be made available by the electric utilities or
8alternative retail electric suppliers either in an electronic
9medium, such as on a website or by electronic mail, or through
10the U.S. Postal Service.
11    (d) For the purposes of subsection (a) of this Section,
12"biomass" means dedicated crops grown for energy production
13and organic wastes.
14    (e) All of the information provided in subsections (a) and
15(b) of this Section shall be presented to the Commission for
16inclusion in its World Wide Web Site.
17(Source: P.A. 99-906, eff. 6-1-17.)
 
18    (220 ILCS 5/16-135 new)
19    Sec. 16-135. Energy Storage Program.
20    (a) The Illinois General Assembly hereby finds and
21declares that:
22        (1) Energy storage systems provide opportunities to:
23            (A) reduce costs to ratepayers directly or
24        indirectly by avoiding or deferring the need for
25        investment in new generation and for upgrades to

 

 

SB2408 Enrolled- 908 -LRB102 11366 BMS 16699 b

1        systems for the transmission and distribution of
2        electricity;
3            (B) reduce the use of fossil fuels for meeting
4        demand during peak load periods;
5            (C) provide ancillary services such as frequency
6        response, load following, and voltage support;
7            (D) assist electric utilities with integrating
8        sources of renewable energy into the grid for the
9        transmission and distribution of electricity, and with
10        maintaining grid stability;
11            (E) support diversification of energy resources;
12            (F) enhance the resilience and reliability of the
13        electric grid; and
14            (G) reduce greenhouse gas emissions and other air
15        pollutants resulting from power generation, thereby
16        minimizing public health impacts that result from
17        power generation.
18        (2) There are significant barriers to obtaining the
19    benefits of energy storage systems, including inadequate
20    valuation of the services that energy storage can provide
21    to the grid and the public.
22        (3) It is in the public interest to:
23            (A) develop a robust competitive market for
24        existing and new providers of energy storage systems
25        in order to leverage Illinois' position as a leader in
26        advanced energy and to capture the potential for

 

 

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1        economic development;
2            (B) implement targets and programs to achieve
3        deployment of energy storage systems; and
4            (C) modernize distributed energy resource programs
5        and interconnection standards to lower costs and
6        efficiently deploy energy storage systems in order to
7        increase economic development and job creation within
8        the state's clean energy economy.
9    (b) In this Section:
10    "Energy storage peak standard" means a percentage of
11annual retail electricity sales during peak hours that an
12electric utility must derive from electricity discharged from
13eligible energy storage systems.
14    "Deployment" means the installation of energy storage
15systems through a variety of mechanisms, including utility
16procurement, customer installation, or other processes.
17    "Electric utility" has the same meaning as provided in
18Section 16-102 of this Act.
19    "Energy storage system" means a technology that is capable
20of absorbing zero-carbon energy, storing it for a period of
21time, and redelivering that energy after it has been stored in
22order to provide direct or indirect benefits to the broader
23electricity system. The term includes, but is not limited to,
24electrochemical, thermal, and electromechanical technologies.
25    "Nonwires alternatives solicitation" means a utility
26solicitation for third-party-owned or utility-owned

 

 

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1distributed energy resources that uses nontraditional
2solutions to defer or replace planned investment on the
3distribution or transmission system.
4    "Total peak demand" means the highest hourly electricity
5demand for an electric utility in a given year, measured in
6megawatts, from all of the electric utility's customers of
7distribution service.
8    (c) The Commission, in consultation with the Illinois
9Power Agency, shall initiate a proceeding to examine specific
10programs, mechanisms, and policies that could support the
11deployment of energy storage systems. The Illinois Commerce
12Commission shall engage a broad group of Illinois
13stakeholders, including electric utilities, the energy storage
14industry, the renewable energy industry, and others to inform
15the proceeding. The proceeding must, at minimum:
16        (1) develop a framework to identify and measure the
17    potential costs, benefits, that deployment of energy
18    storage could produce, as well as barriers to realizing
19    such benefits, including, but not limited to:
20            (A) avoided cost and deferred investments in
21        generation, transmission, and distribution facilities;
22            (B) reduced ancillary services costs;
23            (C) reduced transmission and distribution
24        congestion;
25            (D) lower peak power costs and reduced capacity
26        costs;

 

 

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1            (E) reduced costs for emergency power supplies
2        during outages;
3            (F) reduced curtailment of renewable energy
4        generators;
5            (G) reduced greenhouse gas emissions and other
6        criteria air pollutants;
7            (H) increased grid hosting capacity of renewable
8        energy generators that produce energy on an
9        intermittent basis;
10            (I) increased reliability and resilience of the
11        electric grid;
12            (J) reduced line losses;
13            (K) increased resource diversification;
14            (L) increased economic development;
15        (2) analyze and estimate:
16            (A) the impact on the system's ability to
17        integrate renewable resources;
18            (B) the benefits of addition of storage at
19        specific locations, such as at existing peaking units
20        or locations on the grid close to large load centers;
21            (C) the impact on grid reliability and power
22        quality; and
23            (D) the effect on retail electric rates and supply
24        rates over the useful life of a given energy storage
25        system; and
26        (3) Evaluate and identify cost-effective policies and

 

 

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1    programs to support the deployment of energy storage
2    systems, including, but not limited to:
3            (A) incentive programs;
4            (B) energy storage peak standards;
5            (C) nonwires alternative solicitation;
6            (D) peak demand reduction programs for
7        behind-the-meter storage for all customer classes;
8            (E) value of distributed energy resources
9        programs;
10            (F) tax incentives;
11            (G) time-varying rates;
12            (H) updating of interconnection processes and
13        metering standards; and
14            (I) procurement by the Illinois Power Agency of
15        energy storage resources.
16    (d) The Commission shall, no later than May 31, 2022,
17submit to the General Assembly and the Governor any
18recommendations for additional legislative, regulatory, or
19executive actions based on the findings of the proceeding.
20    (e) At the conclusion of the proceeding required under
21subsection (c), the Commission shall consider and recommend to
22the Governor and General Assembly energy storage deployment
23targets, if any, for each electric utility that serves more
24than 200,000 customers to be achieved by December 31, 2032,
25including recommended interim targets.
26    (f) In setting recommendations for energy storage

 

 

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1deployment targets, the Commission shall:
2        (1) take into account the costs and benefits of
3    procuring energy storage according to the framework
4    developed in the proceeding under subsection (c);
5        (2) consider establishing specific subcategories of
6    deployment of systems by point of interconnection or
7    application.
 
8    (220 ILCS 5/17-900 new)
9    Sec. 17-900. Customer self-generation of electricity.
10    (a) The General Assembly finds and declares that municipal
11systems and electric cooperatives shall continue to be
12governed by their respective governing bodies, but that such
13governing bodies should recognize and implement policies to
14provide the opportunity for their residential and small
15commercial customers who wish to self-generate electricity and
16for reasonable credits to customers for excess electricity,
17balanced against the rights of the other non-self-generating
18customers. This includes creating consistent, fair policies
19that are accessible to all customers and transparent, fair
20processes for raising and addressing any concerns.
21    (b) Customers have the right to install renewable
22generating facilities to be located on the customer's premises
23or customer's side of the billing meter and that are intended
24primarily to offset the customer's own electrical requirements
25and produce, consume, and store their own renewable energy

 

 

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1without discriminatory repercussions from an electric
2cooperative or municipal system. This includes a customer's
3rights to:
4        (1) generate, consume, and deliver excess renewable
5    energy to the distribution grid and reduce his or her use
6    of electricity obtained from the grid;
7        (2) use technology to store energy at his or her
8    residence;
9        (3) interconnect his or her electrical system that
10    generates renewable energy, stores energy, or any
11    combination thereof, with the electricity meter on the
12    customer's premises that is provided by an electric
13    cooperative or municipal system:
14            (A) in a timely manner;
15            (B) in accordance with requirements established by
16        the electric cooperative or municipal utility to
17        ensure the safety of utility workers; and
18            (C) after providing written notice to the electric
19        cooperative or municipal utility system providing
20        service in the service territory, installing a
21        nomenclature plate on the electrical meter panel and
22        meeting all applicable State and local safety and
23        electrical code requirements associated with
24        installing a parallel distributed generation system;
25        and
26        (4) receive fair credit for excess energy delivered to

 

 

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1    the distribution grid.
2    (c) The policies of municipal systems and electric
3cooperatives regarding self-generation and credits for excess
4electricity may reasonably differ from those required of other
5entities by Article XVI of the Public Utilities Act or other
6Acts. The credits must recognize the value of self-generation
7to the distribution grid and benefits to other customers.
8    (d) Within 180 days after this amendatory Act of the 102nd
9General Assembly, each electric cooperative and municipal
10system shall update its policies for the interconnection and
11fair crediting of customer self-generation and storage if
12necessary, to comply with the standards of subsection (b) of
13this Section. Each electric cooperative and municipal system
14shall post its updated policies to a public-facing area of its
15website.
16    (e) An electric cooperative or municipal system customer
17who produces, consumes, and stores his or her own renewable
18energy shall not face discriminatory rate design, fees or
19charges, treatment, or excessive compliance requirements that
20would unreasonably affect that customer's right to
21self-generate electricity as provided for in this Section.
22    (f) An electric cooperative or municipal utility system
23customer shall have a right to appeal any decision related to
24self-generation and storage that violates these rights to
25self-generation and non-discrimination pursuant to the
26provisions of this Section through a complaint under the

 

 

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1Administrative Review Law or similar legal process.
 
2    Section 90-55. The Environmental Protection Act is amended
3by adding Sections 3.131 and 9.18 and by changing Sections
49.15 and 22.59 as follows:
 
5    (415 ILCS 5/3.131 new)
6    Sec. 3.131. Clean energy. "Clean energy" means energy
7generation that is substantially free (90% or greater) of
8carbon dioxide emissions.
 
9    (415 ILCS 5/9.15)
10    Sec. 9.15. Greenhouse gases.
11    (a) An air pollution construction permit shall not be
12required due to emissions of greenhouse gases if the
13equipment, site, or source is not subject to regulation, as
14defined by 40 CFR 52.21, as now or hereafter amended, for
15greenhouse gases or is otherwise not addressed in this Section
16or by the Board in regulations for greenhouse gases. These
17exemptions do . This exemption does not relieve an owner or
18operator from the obligation to comply with other applicable
19rules or regulations.
20    (b) An air pollution operating permit shall not be
21required due to emissions of greenhouse gases if the
22equipment, site, or source is not subject to regulation, as
23defined by Section 39.5 of this Act, for greenhouse gases or is

 

 

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1otherwise not addressed in this Section or by the Board in
2regulations for greenhouse gases. These exemptions do . This
3exemption does not relieve an owner or operator from the
4obligation to comply with other applicable rules or
5regulations.
6    (c) (Blank). Notwithstanding any provision to the contrary
7in this Section, an air pollution construction or operating
8permit shall not be required due to emissions of greenhouse
9gases if any of the following events occur:
10        (1) enactment of federal legislation depriving the
11    Administrator of the USEPA of authority to regulate
12    greenhouse gases under the Clean Air Act;
13        (2) the issuance of any opinion, ruling, judgment,
14    order, or decree by a federal court depriving the
15    Administrator of the USEPA of authority to regulate
16    greenhouse gases under the Clean Air Act; or
17        (3) action by the President of the United States or
18    the President's authorized agent, including the
19    Administrator of the USEPA, to repeal or withdraw the
20    Greenhouse Gas Tailoring Rule (75 Fed. Reg. 31514, June 3,
21    2010).
22    This subsection (c) does not relieve an owner or operator
23from the obligation to comply with applicable rules or
24regulations other than those relating to greenhouse gases.
25    (d) (Blank). If any event listed in subsection (c) of this
26Section occurs, permits issued after such event shall not

 

 

SB2408 Enrolled- 918 -LRB102 11366 BMS 16699 b

1impose permit terms or conditions addressing greenhouse gases
2during the effectiveness of any event listed in subsection
3(c).
4    (e) (Blank). If an event listed in subsection (c) of this
5Section occurs, any owner or operator with a permit that
6includes terms or conditions addressing greenhouse gases may
7elect to submit an application to the Agency to address a
8revision or repeal of such terms or conditions. The Agency
9shall expeditiously process such permit application in
10accordance with applicable laws and regulations.
11    (f) As used in this Section:
12    "Carbon dioxide emission" means the plant annual CO2 total
13output emission as measured by the United States Environmental
14Protection Agency in its Emissions & Generation Resource
15Integrated Database (eGrid), or its successor.
16    "Carbon dioxide equivalent emissions" or "CO2e" means the
17sum total of the mass amount of emissions in tons per year,
18calculated by multiplying the mass amount of each of the 6
19greenhouse gases specified in Section 3.207, in tons per year,
20by its associated global warming potential as set forth in 40
21CFR 98, subpart A, table A-1 or its successor, and then adding
22them all together.
23    "Cogeneration" or "combined heat and power" refers to any
24system that, either simultaneously or sequentially, produces
25electricity and useful thermal energy from a single fuel
26source.

 

 

SB2408 Enrolled- 919 -LRB102 11366 BMS 16699 b

1    "Copollutants" refers to the 6 criteria pollutants that
2have been identified by the United States Environmental
3Protection Agency pursuant to the Clean Air Act.
4    "Electric generating unit" or "EGU" means a fossil
5fuel-fired stationary boiler, combustion turbine, or combined
6cycle system that serves a generator that has a nameplate
7capacity greater than 25 MWe and produces electricity for
8sale.
9    "Environmental justice community" means the definition of
10that term based on existing methodologies and findings, used
11and as may be updated by the Illinois Power Agency and its
12program administrator in the Illinois Solar for All Program.
13    "Equity investment eligible community" or "eligible
14community" means the geographic areas throughout Illinois that
15would most benefit from equitable investments by the State
16designed to combat discrimination and foster sustainable
17economic growth. Specifically, eligible community means the
18following areas:
19        (1) areas where residents have been historically
20    excluded from economic opportunities, including
21    opportunities in the energy sector, as defined as R3 areas
22    pursuant to Section 10-40 of the Cannabis Regulation and
23    Tax Act; and
24        (2) areas where residents have been historically
25    subject to disproportionate burdens of pollution,
26    including pollution from the energy sector, as established

 

 

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1    by environmental justice communities as defined by the
2    Illinois Power Agency pursuant to the Illinois Power
3    Agency Act, excluding any racial or ethnic indicators.
4    "Equity investment eligible person" or "eligible person"
5means the persons who would most benefit from equitable
6investments by the State designed to combat discrimination and
7foster sustainable economic growth. Specifically, eligible
8person means the following people:
9        (1) persons whose primary residence is in an equity
10    investment eligible community;
11        (2) persons whose primary residence is in a
12    municipality, or a county with a population under 100,000,
13    where the closure of an electric generating unit or mine
14    has been publicly announced or the electric generating
15    unit or mine is in the process of closing or closed within
16    the last 5 years;
17        (3) persons who are graduates of or currently enrolled
18    in the foster care system; or
19        (4) persons who were formerly incarcerated.
20    "Existing emissions" means:
21        (1) for CO2e, the total average tons-per-year of CO2e
22    emitted by the EGU or large GHG-emitting unit either in
23    the years 2018 through 2020 or, if the unit was not yet in
24    operation by January 1, 2018, in the first 3 full years of
25    that unit's operation; and
26        (2) for any copollutant, the total average

 

 

SB2408 Enrolled- 921 -LRB102 11366 BMS 16699 b

1    tons-per-year of that copollutant emitted by the EGU or
2    large GHG-emitting unit either in the years 2018 through
3    2020 or, if the unit was not yet in operation by January 1,
4    2018, in the first 3 full years of that unit's operation.
5    "Green hydrogen" means a power plant technology in which
6an EGU creates electric power exclusively from electrolytic
7hydrogen, in a manner that produces zero carbon and
8copollutant emissions, using hydrogen fuel that is
9electrolyzed using a 100% renewable zero carbon emission
10energy source.
11    "Large greenhouse gas-emitting unit" or "large
12GHG-emitting unit" means a unit that is an electric generating
13unit or other fossil fuel-fired unit that itself has a
14nameplate capacity or serves a generator that has a nameplate
15capacity greater than 25 MWe and that produces electricity,
16including, but not limited to, coal-fired, coal-derived,
17oil-fired, natural gas-fired, and cogeneration units.
18    "NOx emission rate" means the plant annual NOx total output
19emission rate as measured by the United States Environmental
20Protection Agency in its Emissions & Generation Resource
21Integrated Database (eGrid), or its successor, in the most
22recent year for which data is available.
23    "Public greenhouse gas-emitting units" or "public
24GHG-emitting unit" means large greenhouse gas-emitting units,
25including EGUs, that are wholly owned, directly or indirectly,
26by one or more municipalities, municipal corporations, joint

 

 

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1municipal electric power agencies, electric cooperatives, or
2other governmental or nonprofit entities, whether organized
3and created under the laws of Illinois or another state.
4    "SO2 emission rate" means the "plant annual SO2 total
5output emission rate" as measured by the United States
6Environmental Protection Agency in its Emissions & Generation
7Resource Integrated Database (eGrid), or its successor, in the
8most recent year for which data is available.
9    (g) All EGUs and large greenhouse gas-emitting units that
10use coal or oil as a fuel and are not public GHG-emitting units
11shall permanently reduce all CO2e and copollutant emissions to
12zero no later than January 1, 2030.
13    (h) All EGUs and large greenhouse gas-emitting units that
14use coal as a fuel and are public GHG-emitting units shall
15permanently reduce CO2e emissions to zero no later than
16December 31, 2045. Any source or plant with such units must
17also reduce their CO2e emissions by 45% from existing
18emissions by no later than January 1, 2035. If the emissions
19reduction requirement is not achieved by December 31, 2035,
20the plant shall retire one or more units or otherwise reduce
21its CO2e emissions by 45% from existing emissions by June 30,
222038.
23    (i) All EGUs and large greenhouse gas-emitting units that
24use gas as a fuel and are not public GHG-emitting units shall
25permanently reduce all CO2e and copollutant emissions to zero,
26including through unit retirement or the use of 100% green

 

 

SB2408 Enrolled- 923 -LRB102 11366 BMS 16699 b

1hydrogen or other similar technology that is commercially
2proven to achieve zero carbon emissions, according to the
3following:
4        (1) No later than January 1, 2030: all EGUs and large
5    greenhouse gas-emitting units that have a NOx emissions
6    rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
7    greater than 0.006 lb/MWh, and are located in or within 3
8    miles of an environmental justice community designated as
9    of January 1, 2021 or an equity investment eligible
10    community.
11        (2) No later than January 1, 2040: all EGUs and large
12    greenhouse gas-emitting units that have a NOx emission
13    rate of greater than 0.12 lbs/MWh or a SO2 emission rate
14    greater than 0.006 lb/MWh, and are not located in or
15    within 3 miles of an environmental justice community
16    designated as of January 1, 2021 or an equity investment
17    eligible community. After January 1, 2035, each such EGU
18    and large greenhouse gas-emitting unit shall reduce its
19    CO2e emissions by at least 50% from its existing emissions
20    for CO2e, and shall be limited in operation to, on average,
21    6 hours or less per day, measured over a calendar year, and
22    shall not run for more than 24 consecutive hours except in
23    emergency conditions, as designated by a Regional
24    Transmission Organization or Independent System Operator.
25        (3) No later than January 1, 2035: all EGUs and large
26    greenhouse gas-emitting units that began operation prior

 

 

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1    to the effective date of this amendatory Act of the 102nd
2    General Assembly and have a NOx emission rate of less than
3    or equal to 0.12 lb/MWh and a SO2 emission rate less than
4    or equal to 0.006 lb/MWh, and are located in or within 3
5    miles of an environmental justice community designated as
6    of January 1, 2021 or an equity investment eligible
7    community. Each such EGU and large greenhouse gas-emitting
8    unit shall reduce its CO2e emissions by at least 50% from
9    its existing emissions for CO2e no later than January 1,
10    2030.
11        (4) No later than January 1, 2040: All remaining EGUs
12    and large greenhouse gas-emitting units that have a heat
13    rate greater than or equal to 7000 BTU/kWh. Each such EGU
14    and Large greenhouse gas-emitting unit shall reduce its
15    CO2e emissions by at least 50% from its existing emissions
16    for CO2e no later than January 1, 2035.
17        (5) No later than January 1, 2045: all remaining EGUs
18    and large greenhouse gas-emitting units.
19    (j) All EGUs and large greenhouse gas-emitting units that
20use gas as a fuel and are public GHG-emitting units shall
21permanently reduce all CO2e and copollutant emissions to zero,
22including through unit retirement or the use of 100% green
23hydrogen or other similar technology that is commercially
24proven to achieve zero carbon emissions by January 1, 2045.
25    (k) All EGUs and large greenhouse gas-emitting units that
26utilize combined heat and power or cogeneration technology

 

 

SB2408 Enrolled- 925 -LRB102 11366 BMS 16699 b

1shall permanently reduce all CO2e and copollutant emissions to
2zero, including through unit retirement or the use of 100%
3green hydrogen or other similar technology that is
4commercially proven to achieve zero carbon emissions by
5January 1, 2045.
6    (k-5) No EGU or large greenhouse gas-emitting unit that
7uses gas as a fuel and is not a public GHG-emitting unit may
8emit, in any 12-month period, CO2e or copollutants in excess of
9that unit's existing emissions for those pollutants.
10    (l) Notwithstanding subsections (g) through (k-5), large
11GHG-emitting units including EGUs may temporarily continue
12emitting greenhouse gases after any applicable deadline
13specified in any of subsections (g) through (k-5) if it has
14been determined, as described in paragraphs (1) and (2) of
15this subsection, that ongoing operation of the EGU is
16necessary to maintain power grid supply and reliability or
17ongoing operation of large GHG-emitting unit that is not an
18EGU is necessary to serve as an emergency backup to
19operations. Up to and including the occurrence of an emission
20reduction deadline under subsection (i), all EGUs and large
21GHG-emitting units must comply with the following terms:
22        (1) if an EGU or large GHG-emitting unit that is a
23    participant in a regional transmission organization
24    intends to retire, it must submit documentation to the
25    appropriate regional transmission organization by the
26    appropriate deadline that meets all applicable regulatory

 

 

SB2408 Enrolled- 926 -LRB102 11366 BMS 16699 b

1    requirements necessary to obtain approval to permanently
2    cease operating the large GHG-emitting unit;
3        (2) if any EGU or large GHG-emitting unit that is a
4    participant in a regional transmission organization
5    receives notice that the regional transmission
6    organization has determined that continued operation of
7    the unit is required, the unit may continue operating
8    until the issue identified by the regional transmission
9    organization is resolved. The owner or operator of the
10    unit must cooperate with the regional transmission
11    organization in resolving the issue and must reduce its
12    emissions to zero, consistent with the requirements under
13    subsection (g), (h), (i), (j), (k), or (k-5), as
14    applicable, as soon as practicable when the issue
15    identified by the regional transmission organization is
16    resolved; and
17        (3) any large GHG-emitting unit that is not a
18    participant in a regional transmission organization shall
19    be allowed to continue emitting greenhouse gases after the
20    zero-emission date specified in subsection (g), (h), (i),
21    (j), (k), or (k-5), as applicable, in the capacity of an
22    emergency backup unit if approved by the Illinois Commerce
23    Commission.
24    (m) No variance, adjusted standard, or other regulatory
25relief otherwise available in this Act may be granted to the
26emissions reduction and elimination obligations in this

 

 

SB2408 Enrolled- 927 -LRB102 11366 BMS 16699 b

1Section.
2    (n) By June 30 of each year, beginning in 2025, the Agency
3shall prepare and publish on its website a report setting
4forth the actual greenhouse gas emissions from individual
5units and the aggregate statewide emissions from all units for
6the prior year.
7    (o) Every 5 years beginning in 2025, the Environmental
8Protection Agency, Illinois Power Agency, and Illinois
9Commerce Commission shall jointly prepare, and release
10publicly, a report to the General Assembly that examines the
11State's current progress toward its renewable energy resource
12development goals, the status of CO2e and copollutant
13emissions reductions, the current status and progress toward
14developing and implementing green hydrogen technologies, the
15current and projected status of electric resource adequacy and
16reliability throughout the State for the period beginning 5
17years ahead, and proposed solutions for any findings. The
18Environmental Protection Agency, Illinois Power Agency, and
19Illinois Commerce Commission shall consult PJM
20Interconnection, LLC and Midcontinent Independent System
21Operator, Inc., or their respective successor organizations
22regarding forecasted resource adequacy and reliability needs,
23anticipated new generation interconnection, new transmission
24development or upgrades, and any announced large GHG-emitting
25unit closure dates and include this information in the report.
26The report shall be released publicly by no later than

 

 

SB2408 Enrolled- 928 -LRB102 11366 BMS 16699 b

1December 15 of the year it is prepared. If the Environmental
2Protection Agency, Illinois Power Agency, and Illinois
3Commerce Commission jointly conclude in the report that the
4data from the regional grid operators, the pace of renewable
5energy development, the pace of development of energy storage
6and demand response utilization, transmission capacity, and
7the CO2e and copollutant emissions reductions required by
8subsection (i) or (k-5) reasonably demonstrate that a resource
9adequacy shortfall will occur, including whether there will be
10sufficient in-state capacity to meet the zonal requirements of
11MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
12regional transmission organizations, or that the regional
13transmission operators determine that a reliability violation
14will occur during the time frame the study is evaluating, then
15the Illinois Power Agency, in conjunction with the
16Environmental Protection Agency shall develop a plan to reduce
17or delay CO2e and copollutant emissions reductions
18requirements only to the extent and for the duration necessary
19to meet the resource adequacy and reliability needs of the
20State, including allowing any plants whose emission reduction
21deadline has been identified in the plan as creating a
22reliability concern to continue operating, including operating
23with reduced emissions or as emergency backup where
24appropriate. The plan shall also consider the use of renewable
25energy, energy storage, demand response, transmission
26development, or other strategies to resolve the identified

 

 

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1resource adequacy shortfall or reliability violation.
2        (1) In developing the plan, the Environmental
3    Protection Agency and the Illinois Power Agency shall hold
4    at least one workshop open to, and accessible at a time and
5    place convenient to, the public and shall consider any
6    comments made by stakeholders or the public. Upon
7    development of the plan, copies of the plan shall be
8    posted and made publicly available on the Environmental
9    Protection Agency's, the Illinois Power Agency's, and the
10    Illinois Commerce Commission's websites. All interested
11    parties shall have 60 days following the date of posting
12    to provide comment to the Environmental Protection Agency
13    and the Illinois Power Agency on the plan. All comments
14    submitted to the Environmental Protection Agency and the
15    Illinois Power Agency shall be encouraged to be specific,
16    supported by data or other detailed analyses, and, if
17    objecting to all or a portion of the plan, accompanied by
18    specific alternative wording or proposals. All comments
19    shall be posted on the Environmental Protection Agency's,
20    the Illinois Power Agency's, and the Illinois Commerce
21    Commission's websites. Within 30 days following the end of
22    the 60-day review period, the Environmental Protection
23    Agency and the Illinois Power Agency shall revise the plan
24    as necessary based on the comments received and file its
25    revised plan with the Illinois Commerce Commission for
26    approval.

 

 

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1        (2) Within 60 days after the filing of the revised
2    plan at the Illinois Commerce Commission, any person
3    objecting to the plan shall file an objection with the
4    Illinois Commerce Commission. Within 30 days after the
5    expiration of the comment period, the Illinois Commerce
6    Commission shall determine whether an evidentiary hearing
7    is necessary. The Illinois Commerce Commission shall also
8    host 3 public hearings within 90 days after the plan is
9    filed. Following the evidentiary and public hearings, the
10    Illinois Commerce Commission shall enter its order
11    approving or approving with modifications the reliability
12    mitigation plan within 180 days.
13        (3) The Illinois Commerce Commission shall only
14    approve the plan if the Illinois Commerce Commission
15    determines that it will resolve the resource adequacy or
16    reliability deficiency identified in the reliability
17    mitigation plan at the least amount of CO2e and copollutant
18    emissions, taking into consideration the emissions impacts
19    on environmental justice communities, and that it will
20    ensure adequate, reliable, affordable, efficient, and
21    environmentally sustainable electric service at the lowest
22    total cost over time, taking into account the impact of
23    increases in emissions.
24        (4) If the resource adequacy or reliability deficiency
25    identified in the reliability mitigation plan is resolved
26    or reduced, the Environmental Protection Agency and the

 

 

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1    Illinois Power Agency may file an amended plan adjusting
2    the reduction or delay in CO2e and copollutant emission
3    reduction requirements identified in the plan.
4(Source: P.A. 97-95, eff. 7-12-11.)
 
5    (415 ILCS 5/9.18 new)
6    Sec. 9.18. Commission on market-based carbon pricing
7solutions.
8    (a) In the United States, state-based market policies to
9reduce greenhouse gases have been in operation since 2009.
10More than a quarter of the US population lives in a state with
11carbon pricing and these states represent one-third of the
12United States' gross domestic product. Market-based policies
13have proved effective at reducing emissions in states across
14the United States, and around the world. Additionally,
15well-designed carbon pricing incentivizes energy efficiency
16and drives investments in low-carbon solutions and
17technologies, such as renewables, hydrogen, biofuels, and
18carbon capture, use, and storage. Illinois must assess
19available suites of programs and policies to support a rapid,
20economy-wide decarbonization and spur the development of a
21clean energy economy in the State, while maintaining Illinois'
22competitive advantage.
23    (b) The Governor is hereby authorized to create a carbon
24pricing commission to study the short-term and long-term
25impacts of joining, implementing, or designing a sector-based,

 

 

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1statewide, or regional carbon pricing program. The commission
2shall analyze and compare the relative cost of, and greenhouse
3gas reductions from, various carbon pricing programs available
4to Illinois and the Midwest, including, but not limited to:
5the Regional Greenhouse Gas Initiative (RGGI), the
6Transportation and Climate Initiative (TCI), California's
7cap-and-trade program, California's low carbon fuel standard,
8Washington State's cap-and-invest program, the Oregon Clean
9Fuels Program, and other relevant market-based programs. At
10the conclusion of the study, no later than December 31, 2022,
11the commission shall issue a public report containing its
12findings.
13    (c) This Section is repealed on January 1, 2024.
 
14    (415 ILCS 5/22.59)
15    Sec. 22.59. CCR surface impoundments.
16    (a) The General Assembly finds that:
17        (1) the State of Illinois has a long-standing policy
18    to restore, protect, and enhance the environment,
19    including the purity of the air, land, and waters,
20    including groundwaters, of this State;
21        (2) a clean environment is essential to the growth and
22    well-being of this State;
23        (3) CCR generated by the electric generating industry
24    has caused groundwater contamination and other forms of
25    pollution at active and inactive plants throughout this

 

 

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1    State;
2        (4) environmental laws should be supplemented to
3    ensure consistent, responsible regulation of all existing
4    CCR surface impoundments; and
5        (5) meaningful participation of State residents,
6    especially vulnerable populations who may be affected by
7    regulatory actions, is critical to ensure that
8    environmental justice considerations are incorporated in
9    the development of, decision-making related to, and
10    implementation of environmental laws and rulemaking that
11    protects and improves the well-being of communities in
12    this State that bear disproportionate burdens imposed by
13    environmental pollution.
14    Therefore, the purpose of this Section is to promote a
15healthful environment, including clean water, air, and land,
16meaningful public involvement, and the responsible disposal
17and storage of coal combustion residuals, so as to protect
18public health and to prevent pollution of the environment of
19this State.
20    The provisions of this Section shall be liberally
21construed to carry out the purposes of this Section.
22    (b) No person shall:
23        (1) cause or allow the discharge of any contaminants
24    from a CCR surface impoundment into the environment so as
25    to cause, directly or indirectly, a violation of this
26    Section or any regulations or standards adopted by the

 

 

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1    Board under this Section, either alone or in combination
2    with contaminants from other sources;
3        (2) construct, install, modify, operate, or close any
4    CCR surface impoundment without a permit granted by the
5    Agency, or so as to violate any conditions imposed by such
6    permit, any provision of this Section or any regulations
7    or standards adopted by the Board under this Section; or
8        (3) cause or allow, directly or indirectly, the
9    discharge, deposit, injection, dumping, spilling, leaking,
10    or placing of any CCR upon the land in a place and manner
11    so as to cause or tend to cause a violation this Section or
12    any regulations or standards adopted by the Board under
13    this Section.
14    (c) For purposes of this Section, a permit issued by the
15Administrator of the United States Environmental Protection
16Agency under Section 4005 of the federal Resource Conservation
17and Recovery Act, shall be deemed to be a permit under this
18Section and subsection (y) of Section 39.
19    (d) Before commencing closure of a CCR surface
20impoundment, in accordance with Board rules, the owner of a
21CCR surface impoundment must submit to the Agency for approval
22a closure alternatives analysis that analyzes all closure
23methods being considered and that otherwise satisfies all
24closure requirements adopted by the Board under this Act.
25Complete removal of CCR, as specified by the Board's rules,
26from the CCR surface impoundment must be considered and

 

 

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1analyzed. Section 3.405 does not apply to the Board's rules
2specifying complete removal of CCR. The selected closure
3method must ensure compliance with regulations adopted by the
4Board pursuant to this Section.
5    (e) Owners or operators of CCR surface impoundments who
6have submitted a closure plan to the Agency before May 1, 2019,
7and who have completed closure prior to 24 months after July
830, 2019 (the effective date of Public Act 101-171) this
9amendatory Act of the 101st General Assembly shall not be
10required to obtain a construction permit for the surface
11impoundment closure under this Section.
12    (f) Except for the State, its agencies and institutions, a
13unit of local government, or not-for-profit electric
14cooperative as defined in Section 3.4 of the Electric Supplier
15Act, any person who owns or operates a CCR surface impoundment
16in this State shall post with the Agency a performance bond or
17other security for the purpose of: (i) ensuring closure of the
18CCR surface impoundment and post-closure care in accordance
19with this Act and its rules; and (ii) insuring remediation of
20releases from the CCR surface impoundment. The only acceptable
21forms of financial assurance are: a trust fund, a surety bond
22guaranteeing payment, a surety bond guaranteeing performance,
23or an irrevocable letter of credit.
24        (1) The cost estimate for the post-closure care of a
25    CCR surface impoundment shall be calculated using a
26    30-year post-closure care period or such longer period as

 

 

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1    may be approved by the Agency under Board or federal
2    rules.
3        (2) The Agency is authorized to enter into such
4    contracts and agreements as it may deem necessary to carry
5    out the purposes of this Section. Neither the State, nor
6    the Director, nor any State employee shall be liable for
7    any damages or injuries arising out of or resulting from
8    any action taken under this Section.
9        (3) The Agency shall have the authority to approve or
10    disapprove any performance bond or other security posted
11    under this subsection. Any person whose performance bond
12    or other security is disapproved by the Agency may contest
13    the disapproval as a permit denial appeal pursuant to
14    Section 40.
15    (g) The Board shall adopt rules establishing construction
16permit requirements, operating permit requirements, design
17standards, reporting, financial assurance, and closure and
18post-closure care requirements for CCR surface impoundments.
19Not later than 8 months after July 30, 2019 (the effective date
20of Public Act 101-171) this amendatory Act of the 101st
21General Assembly the Agency shall propose, and not later than
22one year after receipt of the Agency's proposal the Board
23shall adopt, rules under this Section. The Board shall not be
24deemed in noncompliance with the rulemaking deadline due to
25delays in adopting rules as a result of the Joint Commission on
26Administrative Rules oversight process. The rules must, at a

 

 

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1minimum:
2        (1) be at least as protective and comprehensive as the
3    federal regulations or amendments thereto promulgated by
4    the Administrator of the United States Environmental
5    Protection Agency in Subpart D of 40 CFR 257 governing CCR
6    surface impoundments;
7        (2) specify the minimum contents of CCR surface
8    impoundment construction and operating permit
9    applications, including the closure alternatives analysis
10    required under subsection (d);
11        (3) specify which types of permits include
12    requirements for closure, post-closure, remediation and
13    all other requirements applicable to CCR surface
14    impoundments;
15        (4) specify when permit applications for existing CCR
16    surface impoundments must be submitted, taking into
17    consideration whether the CCR surface impoundment must
18    close under the RCRA;
19        (5) specify standards for review and approval by the
20    Agency of CCR surface impoundment permit applications;
21        (6) specify meaningful public participation procedures
22    for the issuance of CCR surface impoundment construction
23    and operating permits, including, but not limited to,
24    public notice of the submission of permit applications, an
25    opportunity for the submission of public comments, an
26    opportunity for a public hearing prior to permit issuance,

 

 

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1    and a summary and response of the comments prepared by the
2    Agency;
3        (7) prescribe the type and amount of the performance
4    bonds or other securities required under subsection (f),
5    and the conditions under which the State is entitled to
6    collect moneys from such performance bonds or other
7    securities;
8        (8) specify a procedure to identify areas of
9    environmental justice concern in relation to CCR surface
10    impoundments;
11        (9) specify a method to prioritize CCR surface
12    impoundments required to close under RCRA if not otherwise
13    specified by the United States Environmental Protection
14    Agency, so that the CCR surface impoundments with the
15    highest risk to public health and the environment, and
16    areas of environmental justice concern are given first
17    priority;
18        (10) define when complete removal of CCR is achieved
19    and specify the standards for responsible removal of CCR
20    from CCR surface impoundments, including, but not limited
21    to, dust controls and the protection of adjacent surface
22    water and groundwater; and
23        (11) describe the process and standards for
24    identifying a specific alternative source of groundwater
25    pollution when the owner or operator of the CCR surface
26    impoundment believes that groundwater contamination on the

 

 

SB2408 Enrolled- 939 -LRB102 11366 BMS 16699 b

1    site is not from the CCR surface impoundment.
2    (h) Any owner of a CCR surface impoundment that generates
3CCR and sells or otherwise provides coal combustion byproducts
4pursuant to Section 3.135 shall, every 12 months, post on its
5publicly available website a report specifying the volume or
6weight of CCR, in cubic yards or tons, that it sold or provided
7during the past 12 months.
8    (i) The owner of a CCR surface impoundment shall post all
9closure plans, permit applications, and supporting
10documentation, as well as any Agency approval of the plans or
11applications on its publicly available website.
12    (j) The owner or operator of a CCR surface impoundment
13shall pay the following fees:
14        (1) An initial fee to the Agency within 6 months after
15    July 30, 2019 (the effective date of Public Act 101-171)
16    this amendatory Act of the 101st General Assembly of:
17            $50,000 for each closed CCR surface impoundment;
18        and
19            $75,000 for each CCR surface impoundment that have
20        not completed closure.
21        (2) Annual fees to the Agency, beginning on July 1,
22    2020, of:
23            $25,000 for each CCR surface impoundment that has
24        not completed closure; and
25            $15,000 for each CCR surface impoundment that has
26        completed closure, but has not completed post-closure

 

 

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1        care.
2    (k) All fees collected by the Agency under subsection (j)
3shall be deposited into the Environmental Protection Permit
4and Inspection Fund.
5    (l) The Coal Combustion Residual Surface Impoundment
6Financial Assurance Fund is created as a special fund in the
7State treasury. Any moneys forfeited to the State of Illinois
8from any performance bond or other security required under
9this Section shall be placed in the Coal Combustion Residual
10Surface Impoundment Financial Assurance Fund and shall, upon
11approval by the Governor and the Director, be used by the
12Agency for the purposes for which such performance bond or
13other security was issued. The Coal Combustion Residual
14Surface Impoundment Financial Assurance Fund is not subject to
15the provisions of subsection (c) of Section 5 of the State
16Finance Act.
17    (m) The provisions of this Section shall apply, without
18limitation, to all existing CCR surface impoundments and any
19CCR surface impoundments constructed after July 30, 2019 (the
20effective date of Public Act 101-171) this amendatory Act of
21the 101st General Assembly, except to the extent prohibited by
22the Illinois or United States Constitutions.
23(Source: P.A. 101-171, eff. 7-30-19; revised 10-22-19.)
 
24    Section 90-56. The Alternate Fuels Act is amended by
25changing Sections 1, 5, 10, 15, 35, 40, and 45 and by adding

 

 

SB2408 Enrolled- 941 -LRB102 11366 BMS 16699 b

1Section 27 as follows:
 
2    (415 ILCS 120/1)
3    Sec. 1. Short title. This Act may be cited as the Electric
4Vehicle Rebate Alternate Fuels Act.
5(Source: P.A. 89-410.)
 
6    (415 ILCS 120/5)
7    Sec. 5. Purpose. The General Assembly declares that it is
8the public policy of the State to promote and encourage the use
9of electric alternate fuel in vehicles as a means to improve
10air quality and reduce the risks from global warming in the
11State and to meet the requirements of the federal Clean Air Act
12Amendments of 1990 and the federal Energy Policy Act of 1992.
13The General Assembly further declares that the State can play
14a leadership role in increasing usage the development of
15vehicles powered by electricity alternate fuels, as well as in
16the establishment of the necessary infrastructure to support
17this emerging technology.
18(Source: P.A. 89-410.)
 
19    (415 ILCS 120/10)
20    Sec. 10. Definitions. As used in this Act:
21    "Agency" means the Environmental Protection Agency.
22    "Alternate fuel" means liquid petroleum gas, natural gas,
23E85 blend fuel, fuel composed of a minimum 80% ethanol, 80%

 

 

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1bio-based methanol, fuels that are at least 80% derived from
2biomass, hydrogen fuel, or electricity, excluding on-board
3electric generation.
4    "Alternate fuel vehicle" means any vehicle that is
5operated in Illinois and is capable of using an alternate
6fuel.
7    "Biodiesel fuel" means a renewable fuel conforming to the
8industry standard ASTM-D6751 and registered with the U.S.
9Environmental Protection Agency.
10    "Car sharing organization" means an organization whose
11primary business is a membership-based service that allows
12members to drive cars by the hour in order to extend the public
13transit system, reduce personal car ownership, save consumers
14money, increase the use of alternative transportation, and
15improve environmental sustainability.
16    "Conventional", when used to modify the word "vehicle",
17"engine", or "fuel", means gasoline or diesel or any
18reformulations of those fuels.
19    "Covered Area" means the counties of Cook, DuPage, Kane,
20Lake, McHenry, and Will, the townships of Aux Sable and Goose
21Lake in Grundy County, and the township of Oswego in Kendall
22County and those portions of Grundy County and Kendall County
23that are included in the following ZIP code areas, as
24designated by the U.S. Postal Service on the effective date of
25this amendatory Act of 1998: 60416, 60444, 60447, 60450,
2660481, 60538, and 60543.

 

 

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1    "Director" means the Director of the Environmental
2Protection Agency.
3    "Domestic renewable fuel" means a fuel, produced in the
4United States, composed of a minimum 80% ethanol, 80%
5bio-based methanol, or 20% biodiesel fuel.
6    "E85 blend fuel" means fuel that contains 85% ethanol and
715% gasoline.
8    "Electric vehicle" means a vehicle that is exclusively
9powered by and refueled by electricity, must be plugged in to
10charge, and is licensed to drive on public roadways. "Electric
11Vehicle" does not include electric motorcycles, or hybrid
12electric vehicles and extended-range electric vehicles that
13are also equipped with conventional fueled propulsion or
14auxiliary engines.
15    "Environmental justice community" has the same meaning,
16based on existing methodologies and findings, used and as may
17be updated by the Illinois Power Agency and its Program
18Administrator of the Illinois Solar for All Program.
19    "Low income" means persons and families whose income does
20not exceed 80% of the State median income for the current State
21fiscal year, as established by the United States Department of
22Health and Human Services. licensed to drive on public
23roadways, is predominantly powered by, and primarily refueled
24with, electricity, and does not have restrictions confining it
25to operate on only certain types of streets or roads.
26    "GVWR" means Gross Vehicle Weight Rating.

 

 

SB2408 Enrolled- 944 -LRB102 11366 BMS 16699 b

1    "Location" means (i) a parcel of real property or (ii)
2multiple, contiguous parcels of real property that are
3separated by private roadways, public roadways, or private or
4public rights-of-way and are owned, operated, leased, or under
5common control of one party.
6    "Original equipment manufacturer" or "OEM" means a
7manufacturer of alternate fuel vehicles or a manufacturer or
8remanufacturer of alternate fuel engines used in vehicles
9greater than 8500 pounds GVWR.
10    "Rental vehicle" means any motor vehicle that is owned or
11controlled primarily for the purpose of short-term leasing or
12rental pursuant to a contract.
13(Source: P.A. 97-90, eff. 7-11-11.)
 
14    (415 ILCS 120/15)
15    Sec. 15. Rulemaking. The Agency shall promulgate rules as
16necessary and dedicate sufficient resources to implement the
17purposes of Section 27 30 of this Act. Such rules shall be
18consistent with applicable the provisions of the Clean Air Act
19Amendments of 1990 and any regulations promulgated pursuant
20thereto. The Secretary of State may promulgate rules to
21implement Section 35 of this Act. The Department of Commerce
22and Economic Opportunity may promulgate rules to implement
23Section 25 of this Act.
24(Source: P.A. 94-793, eff. 5-19-06.)
 

 

 

SB2408 Enrolled- 945 -LRB102 11366 BMS 16699 b

1    (415 ILCS 120/27 new)
2    Sec. 27. Electric vehicle rebate.
3    (a) Beginning July 1, 2022, and continuing as long as
4funds are available, each person shall be eligible to apply
5for a rebate, in the amounts set forth below, following the
6purchase of an electric vehicle in Illinois. The Agency shall
7issue rebates consistent with the provisions of this Act and
8any implementing regulations adopted by the Agency. In no
9event shall a rebate amount exceed the purchase price of the
10vehicle.
11        (1) Beginning July 1, 2022, a $4,000 rebate for the
12    purchase of an electric vehicle.
13        (2) Beginning July 1, 2026, a $2,000 rebate for the
14    purchase of an electric vehicle.
15        (3) Beginning July 1, 2028, a $1,000 rebate for the
16    purchase of an electric vehicle.
17    (b) To be eligible to receive a rebate, a purchaser must:
18        (1) Reside in Illinois, both at the time the vehicle
19    was purchased and at the time the rebate is issued.
20        (2) Purchase an electric vehicle in Illinois on or
21    after July 1, 2022 and be the owner of the vehicle at the
22    time the rebate is issued. Rented or leased vehicles,
23    vehicles purchased from an out-of-state dealership, and
24    vehicles delivered to or received by the purchaser
25    out-of-state are not eligible for a rebate under this Act.
26        (3) Apply for the rebate within 90 days after the

 

 

SB2408 Enrolled- 946 -LRB102 11366 BMS 16699 b

1    vehicle purchase date, and provide to the Agency proof of
2    residence, proof of vehicle ownership, and proof that the
3    vehicle was purchased in Illinois, including a copy of a
4    purchase agreement noting an Illinois seller. The
5    purchaser must notify the Agency of any changes in
6    residency or ownership of the vehicle that occur between
7    application for a rebate and issuance of a rebate.
8    (c) The Agency shall make available in application
9materials methods for purchasers to identify as low-income.
10The Agency shall prioritize the review of qualified
11applications from low-income purchasers and award rebates to
12qualified purchasers accordingly.
13    (d) The purchaser must retain ownership of the vehicle for
14a minimum of 12 consecutive months immediately after the
15vehicle purchase date. The purchaser must continue to reside
16in a covered area during that time frame and register the
17vehicle in Illinois during that time frame. Rebate recipients
18who fail to satisfy any of the above criteria will be required
19to reimburse the Agency all or part of the original rebate
20amount and shall notify the Agency within 60 days of failing to
21satisfy the criteria.
22    (e) Rebates administered under this Section shall be
23available for both new and used passenger electric vehicles.
24    (f) A rebate administered under this Act may only be
25applied for and awarded one time per vehicle identification
26number. A rebate may only be applied for and awarded once per

 

 

SB2408 Enrolled- 947 -LRB102 11366 BMS 16699 b

1purchaser in any 10-year period.
 
2    (415 ILCS 120/35)
3    Sec. 35. User fees.
4    (a) The Office of the Secretary of State shall collect
5annual user fees from any individual, partnership,
6association, corporation, or agency of the United States
7government that registers any combination of 10 or more of the
8following types of motor vehicles in the Covered Area: (1)
9vehicles of the First Division, as defined in the Illinois
10Vehicle Code; (2) vehicles of the Second Division registered
11under the B, C, D, F, H, MD, MF, MG, MH and MJ plate
12categories, as defined in the Illinois Vehicle Code; and (3)
13commuter vans and livery vehicles as defined in the Illinois
14Vehicle Code. This Section does not apply to vehicles
15registered under the International Registration Plan under
16Section 3-402.1 of the Illinois Vehicle Code. The user fee
17shall be $20 for each vehicle registered in the Covered Area
18for each fiscal year. The Office of the Secretary of State
19shall collect the $20 when a vehicle's registration fee is
20paid.
21    (b) Owners of State, county, and local government
22vehicles, rental vehicles, antique vehicles, expanded-use
23antique vehicles, electric vehicles, and motorcycles are
24exempt from paying the user fees on such vehicles.
25    (c) The Office of the Secretary of State shall deposit the

 

 

SB2408 Enrolled- 948 -LRB102 11366 BMS 16699 b

1user fees collected into the Electric Vehicle Rebate Alternate
2Fuels Fund.
3(Source: P.A. 101-505, eff. 1-1-20.)
 
4    (415 ILCS 120/40)
5    Sec. 40. Appropriations from the Electric Vehicle Rebate
6Alternate Fuels Fund.
7    (a) User Fees Funds. The Agency shall estimate the amount
8of user fees expected to be collected under Section 35 of this
9Act for each fiscal year. User fee funds shall be deposited
10into and distributed from the Alternate Fuels Fund in the
11following manner:
12        (1) In each of fiscal years 1999, 2000, 2001, 2002,
13    and 2003, an amount not to exceed $200,000, and beginning
14    in fiscal year 2004 an annual amount not to exceed
15    $225,000, may be appropriated to the Agency from the
16    Alternate Fuels Fund to pay its costs of administering the
17    programs authorized by Section 27 30 of this Act. Up to
18    $200,000 may be appropriated to the Office of the
19    Secretary of State in each of fiscal years 1999, 2000,
20    2001, 2002, and 2003 from the Alternate Fuels Fund to pay
21    the Secretary of State's costs of administering the
22    programs authorized under this Act. Beginning in fiscal
23    year 2004 and in each fiscal year thereafter, an amount
24    not to exceed $225,000 may be appropriated to the
25    Secretary of State from the Alternate Fuels Fund to pay

 

 

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1    the Secretary of State's costs of administering the
2    programs authorized under this Act.
3        (2) In fiscal year 2022 and each fiscal year
4    thereafter years 1999, 2000, 2001, and 2002, after
5    appropriation of the amounts authorized by item (1) of
6    subsection (a) of this Section, the remaining moneys
7    estimated to be collected during each fiscal year shall be
8    appropriated as follows: 80% of the remaining moneys shall
9    be appropriated to fund the programs authorized by Section
10    30, and 20% shall be appropriated to fund the programs
11    authorized by Section 25. In fiscal year 2004 and each
12    fiscal year thereafter, after appropriation of the amounts
13    authorized by item (1) of subsection (a) of this Section,
14    the remaining moneys estimated to be collected during each
15    fiscal year shall be appropriated as follows: 70% of the
16    remaining moneys shall be appropriated to fund the
17    programs authorized by Section 30 and 30% shall be
18    appropriated to fund the programs authorized by Section
19    31.
20        (3) (Blank).
21        (4) Moneys appropriated to fund the programs
22    authorized in Sections 25 and 30 shall be expended only
23    after they have been collected and deposited into the
24    Alternate Fuels Fund.
25    (b) General Revenue Fund Appropriations. General Revenue
26Fund amounts appropriated to and deposited into the Electric

 

 

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1Vehicle Rebate Alternate Fuels Fund shall be distributed from
2the Electric Vehicle Rebate Alternate Fuels Fund to fund the
3program authorized in Section 27. in the following manner:
4        (1) In each of fiscal years 2003 and 2004, an amount
5    not to exceed $50,000 may be appropriated to the
6    Department of Commerce and Community Affairs (now
7    Department of Commerce and Economic Opportunity) from the
8    Alternate Fuels Fund to pay its costs of administering the
9    programs authorized by Sections 31 and 32.
10        (2) In each of fiscal years 2003 and 2004, an amount
11    not to exceed $50,000 may be appropriated to the
12    Department of Commerce and Community Affairs (now
13    Department of Commerce and Economic Opportunity) to fund
14    the programs authorized by Section 32.
15        (3) In each of fiscal years 2003 and 2004, after
16    appropriation of the amounts authorized in items (1) and
17    (2) of subsection (b) of this Section, the remaining
18    moneys received from the General Revenue Fund shall be
19    appropriated as follows: 52.632% of the remaining moneys
20    shall be appropriated to fund the programs authorized by
21    Sections 25 and 30 and 47.368% of the remaining moneys
22    shall be appropriated to fund the programs authorized by
23    Section 31. The moneys appropriated to fund the programs
24    authorized by Sections 25 and 30 shall be used as follows:
25    20% shall be used to fund the programs authorized by
26    Section 25, and 80% shall be used to fund the programs

 

 

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1    authorized by Section 30.
2    Moneys appropriated to fund the programs authorized in
3Section 31 shall be expended only after they have been
4deposited into the Alternate Fuels Fund.
5(Source: P.A. 93-32, eff. 7-1-03; 94-793, eff. 5-19-06.)
 
6    (415 ILCS 120/45)
7    Sec. 45. Electric Vehicle Rebate Alternate Fuels Fund;
8creation; deposit of user fees. A separate fund in the State
9Treasury called the Electric Vehicle Rebate Alternate Fuels
10Fund is created, into which shall be transferred the user fees
11as provided in Section 35 and any other revenues, deposits,
12State appropriations, contributions, grants, gifts, bequests,
13legacies of money and securities, or transfers as provided by
14law from, without limitation, governmental entities, private
15sources, foundations, trade associations, industry
16organizations, and not-for-profit organizations.
17(Source: P.A. 92-858, eff. 1-3-03.)
 
18    (415 ILCS 120/20 rep.)
19    (415 ILCS 120/22 rep.)
20    (415 ILCS 120/24 rep.)
21    (415 ILCS 120/30 rep.)
22    (415 ILCS 120/31 rep.)
23    (415 ILCS 120/32 rep.)
24    Section 90-57. The Alternate Fuels Act is amended by

 

 

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1repealing Sections 20, 22, 24, 30, 31, and 32.
 
2    Section 90-59. The Illinois Vehicle Code is amended by
3changing Section 13C-10 as follows:
 
4    (625 ILCS 5/13C-10)
5    Sec. 13C-10. Program.
6    (a) The Agency shall establish a program to begin February
71, 2007, to reduce the emission of pollutants by motor
8vehicles. This program shall be a replacement for and
9continuation of the program established under the Vehicle
10Emissions Inspection Law of 1995, Chapter 13B of this Code.
11    At a minimum, this program shall provide for all of the
12following:
13        (1) The inspection of certain motor vehicles every 2
14    years, as required under Section 13C-15.
15        (2) The establishment and operation of official
16    inspection stations.
17        (3) The designation of official test equipment and
18    testing procedures.
19        (4) The training and supervision of inspectors and
20    other personnel.
21        (5) Procedures to assure the correct operation,
22    maintenance, and calibration of test equipment.
23        (6) Procedures for certifying test results and for
24    reporting and maintaining relevant data and records.

 

 

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1        (7) The funding of electric vehicle alternate fuel
2    rebates and grants as authorized by the Electric Vehicle
3    Rebate Section 30 of the Alternate Fuels Act.
4    (b) The Agency shall provide for the operation of a
5sufficient number of official inspection stations to prevent
6undue difficulty for motorists to obtain the inspections
7required under this Chapter. In the event that the Agency
8operates inspection stations or contracts with one or more
9parties to operate inspection stations on its behalf, the
10Agency shall endeavor to: (i) locate the stations so that the
11owners of vehicles subject to inspection reside within 12
12miles of an official inspection station; and (ii) have
13sufficient inspection capacity at the stations so that the
14usual wait before the start of an inspection does not exceed 15
15minutes.
16(Source: P.A. 98-24, eff. 6-19-13.)
 
17    Section 90-60. The Illinois Worker Adjustment and
18Retraining Notification Act is amended by changing Section 10
19as follows:
 
20    (820 ILCS 65/10)
21    Sec. 10. Notice.
22    (a) An employer may not order a mass layoff, relocation,
23or employment loss unless, 60 days before the order takes
24effect, the employer gives written notice of the order to the

 

 

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1following:
2        (1) affected employees and representatives of affected
3    employees; and
4        (2) the Department of Commerce and Economic
5    Opportunity and the chief elected official of each
6    municipal and county government within which the
7    employment loss, relocation, or mass layoff occurs.
8    (a-5) An owner of an investor-owned electric generating
9plant or coal mining operation may not order a mass layoff,
10relocation, or employment loss unless, 2 years before the
11order takes effect, the employer gives written notice of the
12order to the following:
13        (1) affected employees and representatives of affected
14    employees; and
15        (2) the Department of Commerce and Economic
16    Opportunity and the chief elected official of each
17    municipal and county government within which the
18    employment loss, relocation, or mass layoff occurs.
19    (b) An employer required to give notice of any mass
20layoff, relocation, or employment loss under this Act shall
21include in its notice the elements required by the federal
22Worker Adjustment and Retraining Notification Act (29 U.S.C.
232101 et seq.).
24    (c) Notwithstanding the requirements of subsection (a), an
25employer is not required to provide notice if a mass layoff,
26relocation, or employment loss is necessitated by a physical

 

 

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1calamity or an act of terrorism or war.
2    (d) The mailing of notice to an employee's last known
3address or inclusion of notice in the employee's paycheck
4shall be considered acceptable methods for fulfillment of the
5employer's obligation to give notice to each affected employee
6under this Act.
7    (e) In the case of a sale of part or all of an employer's
8business, the seller shall be responsible for providing notice
9for any plant closing or mass layoff in accordance with this
10Section, up to and including the effective date of the sale.
11After the effective date of the sale of part or all of an
12employer's business, the purchaser shall be responsible for
13providing notice for any plant closing or mass layoff in
14accordance with this Section. Notwithstanding any other
15provision of this Act, any person who is an employee of the
16seller (other than a part-time employee) as of the effective
17date of the sale shall be considered an employee of the
18purchaser immediately after the effective date of the sale.
19    (f) An employer which is receiving State or local economic
20development incentives for doing or continuing to do business
21in this State may be required to provide additional notice
22pursuant to Section 15 of the Business Economic Support Act.
23    (g) The rights and remedies provided to employees by this
24Act are in addition to, and not in lieu of, any other
25contractual or statutory rights and remedies of the employees,
26and are not intended to alter or affect such rights and

 

 

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1remedies, except that the period of notification required by
2this Act shall run concurrently with any period of
3notification required by contract or by any other law.
4    (h) It is the sense of the General Assembly that an
5employer who is not required to comply with the notice
6requirements of this Section should, to the extent possible,
7provide notice to its employees about a proposal to close a
8plant or permanently reduce its workforce.
9(Source: P.A. 93-915, eff. 1-1-05.)
 
10
Article 99. Miscellaneous Provisions; Effective Date

 
11    Section 99-95. No acceleration or delay. Where this Act
12makes changes in a statute that is represented in this Act by
13text that is not yet or no longer in effect (for example, a
14Section represented by multiple versions), the use of that
15text does not accelerate or delay the taking effect of (i) the
16changes made by this Act or (ii) provisions derived from any
17other Public Act.
 
18    Section 99-97. Severability. The provisions of this Act
19are severable under Section 1.31 of the Statute on Statutes.
 
20    Section 99-99. Effective date. This Act takes effect upon
21becoming law.