Rep. Lawrence Walsh, Jr.

Filed: 4/7/2022





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2    AMENDMENT NO. ______. Amend Senate Bill 3866, AS AMENDED,
3with reference to page and line numbers of House Amendment No.
44, as follows:
5on page 4, immediately below line 21, by inserting the
7    "Section 1-6. The Illinois Finance Authority Act is
8amended by changing Section 801-10 as follows:
9    (20 ILCS 3501/801-10)
10    Sec. 801-10. Definitions. The following terms, whenever
11used or referred to in this Act, shall have the following
12meanings, except in such instances where the context may
13clearly indicate otherwise:
14    (a) The term "Authority" means the Illinois Finance
15Authority created by this Act.



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1    (b) The term "project" means an industrial project, clean
2energy project, conservation project, housing project, public
3purpose project, higher education project, health facility
4project, cultural institution project, municipal bond program
5project, PACE Project, agricultural facility or agribusiness,
6and "project" may include any combination of one or more of the
7foregoing undertaken jointly by any person with one or more
8other persons.
9    (c) The term "public purpose project" means (i) any
10project or facility, including without limitation land,
11buildings, structures, machinery, equipment and all other real
12and personal property, which is authorized or required by law
13to be acquired, constructed, improved, rehabilitated,
14reconstructed, replaced or maintained by any unit of
15government or any other lawful public purpose, including
16provision of working capital, which is authorized or required
17by law to be undertaken by any unit of government or (ii) costs
18incurred and other expenditures, including expenditures for
19management, investment, or working capital costs, incurred in
20connection with the reform, consolidation, or implementation
21of the transition process as described in Articles 22B and 22C
22of the Illinois Pension Code.
23    (d) The term "industrial project" means the acquisition,
24construction, refurbishment, creation, development or
25redevelopment of any facility, equipment, machinery, real
26property or personal property for use by any instrumentality



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1of the State or its political subdivisions, for use by any
2person or institution, public or private, for profit or not
3for profit, or for use in any trade or business, including, but
4not limited to, any industrial, manufacturing, clean energy,
5or commercial enterprise that is located within or outside the
6State, provided that, with respect to a project involving
7property located outside the State, the property must be
8owned, operated, leased or managed by an entity located within
9the State or an entity affiliated with an entity located
10within the State, and which is (1) a capital project or clean
11energy project, including, but not limited to: (i) land and
12any rights therein, one or more buildings, structures or other
13improvements, machinery and equipment, whether now existing or
14hereafter acquired, and whether or not located on the same
15site or sites; (ii) all appurtenances and facilities
16incidental to the foregoing, including, but not limited to,
17utilities, access roads, railroad sidings, track, docking and
18similar facilities, parking facilities, dockage, wharfage,
19railroad roadbed, track, trestle, depot, terminal, switching
20and signaling or related equipment, site preparation and
21landscaping; and (iii) all non-capital costs and expenses
22relating thereto or (2) any addition to, renovation,
23rehabilitation or improvement of a capital project or a clean
24energy project, or (3) any activity or undertaking within or
25outside the State, provided that, with respect to a project
26involving property located outside the State, the property



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1must be owned, operated, leased or managed by an entity
2located within the State or an entity affiliated with an
3entity located within the State, which the Authority
4determines will aid, assist or encourage economic growth,
5development or redevelopment within the State or any area
6thereof, will promote the expansion, retention or
7diversification of employment opportunities within the State
8or any area thereof or will aid in stabilizing or developing
9any industry or economic sector of the State economy. The term
10"industrial project" also means the production of motion
12    (e) The term "bond" or "bonds" shall include bonds, notes
13(including bond, grant or revenue anticipation notes),
14certificates and/or other evidences of indebtedness
15representing an obligation to pay money, including refunding
17    (f) The terms "lease agreement" and "loan agreement" shall
18mean: (i) an agreement whereby a project acquired by the
19Authority by purchase, gift or lease is leased to any person,
20corporation or unit of local government which will use or
21cause the project to be used as a project as heretofore defined
22upon terms providing for lease rental payments at least
23sufficient to pay when due all principal of, interest and
24premium, if any, on any bonds of the Authority issued with
25respect to such project, providing for the maintenance,
26insuring and operation of the project on terms satisfactory to



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1the Authority, providing for disposition of the project upon
2termination of the lease term, including purchase options or
3abandonment of the premises, and such other terms as may be
4deemed desirable by the Authority, or (ii) any agreement
5pursuant to which the Authority agrees to loan the proceeds of
6its bonds issued with respect to a project or other funds of
7the Authority to any person which will use or cause the project
8to be used as a project as heretofore defined upon terms
9providing for loan repayment installments at least sufficient
10to pay when due all principal of, interest and premium, if any,
11on any bonds of the Authority, if any, issued with respect to
12the project, and providing for maintenance, insurance and
13other matters as may be deemed desirable by the Authority.
14    (g) The term "financial aid" means the expenditure of
15Authority funds or funds provided by the Authority through the
16issuance of its bonds, notes or other evidences of
17indebtedness or from other sources for the development,
18construction, acquisition or improvement of a project.
19    (h) The term "person" means an individual, corporation,
20unit of government, business trust, estate, trust, partnership
21or association, 2 or more persons having a joint or common
22interest, or any other legal entity.
23    (i) The term "unit of government" means the federal
24government, the State or unit of local government, a school
25district, or any agency or instrumentality, office, officer,
26department, division, bureau, commission, college or



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1university thereof.
2    (j) The term "health facility" means: (a) any public or
3private institution, place, building, or agency required to be
4licensed under the Hospital Licensing Act; (b) any public or
5private institution, place, building, or agency required to be
6licensed under the Nursing Home Care Act, the Specialized
7Mental Health Rehabilitation Act of 2013, the ID/DD Community
8Care Act, or the MC/DD Act; (c) any public or licensed private
9hospital as defined in the Mental Health and Developmental
10Disabilities Code; (d) any such facility exempted from such
11licensure when the Director of Public Health attests that such
12exempted facility meets the statutory definition of a facility
13subject to licensure; (e) any other public or private health
14service institution, place, building, or agency which the
15Director of Public Health attests is subject to certification
16by the Secretary, U.S. Department of Health and Human Services
17under the Social Security Act, as now or hereafter amended, or
18which the Director of Public Health attests is subject to
19standard-setting by a recognized public or voluntary
20accrediting or standard-setting agency; (f) any public or
21private institution, place, building or agency engaged in
22providing one or more supporting services to a health
23facility; (g) any public or private institution, place,
24building or agency engaged in providing training in the
25healing arts, including, but not limited to, schools of
26medicine, dentistry, osteopathy, optometry, podiatry, pharmacy



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1or nursing, schools for the training of x-ray, laboratory or
2other health care technicians and schools for the training of
3para-professionals in the health care field; (h) any public or
4private congregate, life or extended care or elderly housing
5facility or any public or private home for the aged or infirm,
6including, without limitation, any Facility as defined in the
7Life Care Facilities Act; (i) any public or private mental,
8emotional or physical rehabilitation facility or any public or
9private educational, counseling, or rehabilitation facility or
10home, for those persons with a developmental disability, those
11who are physically ill or disabled, the emotionally disturbed,
12those persons with a mental illness or persons with learning
13or similar disabilities or problems; (j) any public or private
14alcohol, drug or substance abuse diagnosis, counseling
15treatment or rehabilitation facility, (k) any public or
16private institution, place, building or agency licensed by the
17Department of Children and Family Services or which is not so
18licensed but which the Director of Children and Family
19Services attests provides child care, child welfare or other
20services of the type provided by facilities subject to such
21licensure; (l) any public or private adoption agency or
22facility; and (m) any public or private blood bank or blood
23center. "Health facility" also means a public or private
24structure or structures suitable primarily for use as a
25laboratory, laundry, nurses or interns residence or other
26housing or hotel facility used in whole or in part for staff,



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1employees or students and their families, patients or
2relatives of patients admitted for treatment or care in a
3health facility, or persons conducting business with a health
4facility, physician's facility, surgicenter, administration
5building, research facility, maintenance, storage or utility
6facility and all structures or facilities related to any of
7the foregoing or required or useful for the operation of a
8health facility, including parking or other facilities or
9other supporting service structures required or useful for the
10orderly conduct of such health facility. "Health facility"
11also means, with respect to a project located outside the
12State, any public or private institution, place, building, or
13agency which provides services similar to those described
14above, provided that such project is owned, operated, leased
15or managed by a participating health institution located
16within the State, or a participating health institution
17affiliated with an entity located within the State.
18    (k) The term "participating health institution" means (i)
19a private corporation or association or (ii) a public entity
20of this State, in either case authorized by the laws of this
21State or the applicable state to provide or operate a health
22facility as defined in this Act and which, pursuant to the
23provisions of this Act, undertakes the financing, construction
24or acquisition of a project or undertakes the refunding or
25refinancing of obligations, loans, indebtedness or advances as
26provided in this Act.



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1    (l) The term "health facility project", means a specific
2health facility work or improvement to be financed or
3refinanced (including without limitation through reimbursement
4of prior expenditures), acquired, constructed, enlarged,
5remodeled, renovated, improved, furnished, or equipped, with
6funds provided in whole or in part hereunder, any accounts
7receivable, working capital, liability or insurance cost or
8operating expense financing or refinancing program of a health
9facility with or involving funds provided in whole or in part
10hereunder, or any combination thereof.
11    (m) The term "bond resolution" means the resolution or
12resolutions authorizing the issuance of, or providing terms
13and conditions related to, bonds issued under this Act and
14includes, where appropriate, any trust agreement, trust
15indenture, indenture of mortgage or deed of trust providing
16terms and conditions for such bonds.
17    (n) The term "property" means any real, personal or mixed
18property, whether tangible or intangible, or any interest
19therein, including, without limitation, any real estate,
20leasehold interests, appurtenances, buildings, easements,
21equipment, furnishings, furniture, improvements, machinery,
22rights of way, structures, accounts, contract rights or any
23interest therein.
24    (o) The term "revenues" means, with respect to any
25project, the rents, fees, charges, interest, principal
26repayments, collections and other income or profit derived



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2    (p) The term "higher education project" means, in the case
3of a private institution of higher education, an educational
4facility to be acquired, constructed, enlarged, remodeled,
5renovated, improved, furnished, or equipped, or any
6combination thereof.
7    (q) The term "cultural institution project" means, in the
8case of a cultural institution, a cultural facility to be
9acquired, constructed, enlarged, remodeled, renovated,
10improved, furnished, or equipped, or any combination thereof.
11    (r) The term "educational facility" means any property
12located within the State, or any property located outside the
13State, provided that, if the property is located outside the
14State, it must be owned, operated, leased or managed by an
15entity located within the State or an entity affiliated with
16an entity located within the State, in each case constructed
17or acquired before or after the effective date of this Act,
18which is or will be, in whole or in part, suitable for the
19instruction, feeding, recreation or housing of students, the
20conducting of research or other work of a private institution
21of higher education, the use by a private institution of
22higher education in connection with any educational, research
23or related or incidental activities then being or to be
24conducted by it, or any combination of the foregoing,
25including, without limitation, any such property suitable for
26use as or in connection with any one or more of the following:



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



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1zoological facility, and shall also include, without
2limitation, books, works of art or music, animal, plant or
3aquatic life or other items for display, exhibition or
4performance. The term "cultural facility" includes buildings
5on the National Register of Historic Places which are owned or
6operated by nonprofit entities.
7    (t) "Private institution of higher education" means a
8not-for-profit educational institution which is not owned by
9the State or any political subdivision, agency,
10instrumentality, district or municipality thereof, which is
11authorized by law to provide a program of education beyond the
12high school level and which:
13        (1) Admits as regular students only individuals having
14    a certificate of graduation from a high school, or the
15    recognized equivalent of such a certificate;
16        (2) Provides an educational program for which it
17    awards a bachelor's degree, or provides an educational
18    program, admission into which is conditioned upon the
19    prior attainment of a bachelor's degree or its equivalent,
20    for which it awards a postgraduate degree, or provides not
21    less than a 2-year program which is acceptable for full
22    credit toward such a degree, or offers a 2-year program in
23    engineering, mathematics, or the physical or biological
24    sciences which is designed to prepare the student to work
25    as a technician and at a semiprofessional level in
26    engineering, scientific, or other technological fields



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1    which require the understanding and application of basic
2    engineering, scientific, or mathematical principles or
3    knowledge;
4        (3) Is accredited by a nationally recognized
5    accrediting agency or association or, if not so
6    accredited, is an institution whose credits are accepted,
7    on transfer, by not less than 3 institutions which are so
8    accredited, for credit on the same basis as if transferred
9    from an institution so accredited, and holds an unrevoked
10    certificate of approval under the Private College Act from
11    the Board of Higher Education, or is qualified as a
12    "degree granting institution" under the Academic Degree
13    Act; and
14        (4) Does not discriminate in the admission of students
15    on the basis of race or color. "Private institution of
16    higher education" also includes any "academic
17    institution".
18    (u) The term "academic institution" means any
19not-for-profit institution which is not owned by the State or
20any political subdivision, agency, instrumentality, district
21or municipality thereof, which institution engages in, or
22facilitates academic, scientific, educational or professional
23research or learning in a field or fields of study taught at a
24private institution of higher education. Academic institutions
25include, without limitation, libraries, archives, academic,
26scientific, educational or professional societies,



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1institutions, associations or foundations having such
3    (v) The term "cultural institution" means any
4not-for-profit institution which is not owned by the State or
5any political subdivision, agency, instrumentality, district
6or municipality thereof, which institution engages in the
7cultural, intellectual, scientific, educational or artistic
8enrichment of the people of the State. Cultural institutions
9include, without limitation, aquaria, botanical societies,
10historical societies, libraries, museums, performing arts
11associations or societies, scientific societies and zoological
13    (w) The term "affiliate" means, with respect to financing
14of an agricultural facility or an agribusiness, any lender,
15any person, firm or corporation controlled by, or under common
16control with, such lender, and any person, firm or corporation
17controlling such lender.
18    (x) The term "agricultural facility" means land, any
19building or other improvement thereon or thereto, and any
20personal properties deemed necessary or suitable for use,
21whether or not now in existence, in farming, ranching, the
22production of agricultural commodities (including, without
23limitation, the products of aquaculture, hydroponics and
24silviculture) or the treating, processing or storing of such
25agricultural commodities when such activities are customarily
26engaged in by farmers as a part of farming and which land,



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1building, improvement or personal property is located within
2the State, or is located outside the State, provided that, if
3such property is located outside the State, it must be owned,
4operated, leased, or managed by an entity located within the
5State or an entity affiliated with an entity located within
6the State.
7    (y) The term "lender" with respect to financing of an
8agricultural facility or an agribusiness, means any federal or
9State chartered bank, Federal Land Bank, Production Credit
10Association, Bank for Cooperatives, federal or State chartered
11savings and loan association or building and loan association,
12Small Business Investment Company or any other institution
13qualified within this State to originate and service loans,
14including, but without limitation to, insurance companies,
15credit unions and mortgage loan companies. "Lender" also means
16a wholly owned subsidiary of a manufacturer, seller or
17distributor of goods or services that makes loans to
18businesses or individuals, commonly known as a "captive
19finance company".
20    (z) The term "agribusiness" means any sole proprietorship,
21limited partnership, co-partnership, joint venture,
22corporation or cooperative which operates or will operate a
23facility located within the State or outside the State,
24provided that, if any facility is located outside the State,
25it must be owned, operated, leased, or managed by an entity
26located within the State or an entity affiliated with an



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1entity located within the State, that is related to the
2processing of agricultural commodities (including, without
3limitation, the products of aquaculture, hydroponics and
4silviculture) or the manufacturing, production or construction
5of agricultural buildings, structures, equipment, implements,
6and supplies, or any other facilities or processes used in
7agricultural production. Agribusiness includes but is not
8limited to the following:
9        (1) grain handling and processing, including grain
10    storage, drying, treatment, conditioning, mailing and
11    packaging;
12        (2) seed and feed grain development and processing;
13        (3) fruit and vegetable processing, including
14    preparation, canning and packaging;
15        (4) processing of livestock and livestock products,
16    dairy products, poultry and poultry products, fish or
17    apiarian products, including slaughter, shearing,
18    collecting, preparation, canning and packaging;
19        (5) fertilizer and agricultural chemical
20    manufacturing, processing, application and supplying;
21        (6) farm machinery, equipment and implement
22    manufacturing and supplying;
23        (7) manufacturing and supplying of agricultural
24    commodity processing machinery and equipment, including
25    machinery and equipment used in slaughter, treatment,
26    handling, collecting, preparation, canning or packaging of



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1    agricultural commodities;
2        (8) farm building and farm structure manufacturing,
3    construction and supplying;
4        (9) construction, manufacturing, implementation,
5    supplying or servicing of irrigation, drainage and soil
6    and water conservation devices or equipment;
7        (10) fuel processing and development facilities that
8    produce fuel from agricultural commodities or byproducts;
9        (11) facilities and equipment for processing and
10    packaging agricultural commodities specifically for
11    export;
12        (12) facilities and equipment for forestry product
13    processing and supplying, including sawmilling operations,
14    wood chip operations, timber harvesting operations, and
15    manufacturing of prefabricated buildings, paper, furniture
16    or other goods from forestry products;
17        (13) facilities and equipment for research and
18    development of products, processes and equipment for the
19    production, processing, preparation or packaging of
20    agricultural commodities and byproducts.
21    (aa) The term "asset" with respect to financing of any
22agricultural facility or any agribusiness, means, but is not
23limited to the following: cash crops or feed on hand;
24livestock held for sale; breeding stock; marketable bonds and
25securities; securities not readily marketable; accounts
26receivable; notes receivable; cash invested in growing crops;



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1net cash value of life insurance; machinery and equipment;
2cars and trucks; farm and other real estate including life
3estates and personal residence; value of beneficial interests
4in trusts; government payments or grants; and any other
6    (bb) The term "liability" with respect to financing of any
7agricultural facility or any agribusiness shall include, but
8not be limited to the following: accounts payable; notes or
9other indebtedness owed to any source; taxes; rent; amounts
10owed on real estate contracts or real estate mortgages;
11judgments; accrued interest payable; and any other liability.
12    (cc) The term "Predecessor Authorities" means those
13authorities as described in Section 845-75.
14    (dd) The term "housing project" means a specific work or
15improvement located within the State or outside the State and
16undertaken to provide residential dwelling accommodations,
17including the acquisition, construction or rehabilitation of
18lands, buildings and community facilities and in connection
19therewith to provide nonhousing facilities which are part of
20the housing project, including land, buildings, improvements,
21equipment and all ancillary facilities for use for offices,
22stores, retirement homes, hotels, financial institutions,
23service, health care, education, recreation or research
24establishments, or any other commercial purpose which are or
25are to be related to a housing development, provided that any
26work or improvement located outside the State is owned,



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1operated, leased or managed by an entity located within the
2State, or any entity affiliated with an entity located within
3the State.
4    (ee) The term "conservation project" means any project
5including the acquisition, construction, rehabilitation,
6maintenance, operation, or upgrade that is intended to create
7or expand open space or to reduce energy usage through
8efficiency measures. For the purpose of this definition, "open
9space" has the definition set forth under Section 10 of the
10Illinois Open Land Trust Act.
11    (ff) The term "significant presence" means the existence
12within the State of the national or regional headquarters of
13an entity or group or such other facility of an entity or group
14of entities where a significant amount of the business
15functions are performed for such entity or group of entities.
16    (gg) The term "municipal bond issuer" means the State or
17any other state or commonwealth of the United States, or any
18unit of local government, school district, agency or
19instrumentality, office, department, division, bureau,
20commission, college or university thereof located in the State
21or any other state or commonwealth of the United States.
22    (hh) The term "municipal bond program project" means a
23program for the funding of the purchase of bonds, notes or
24other obligations issued by or on behalf of a municipal bond
26    (ii) The term "participating lender" means any trust



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1company, bank, savings bank, credit union, merchant bank,
2investment bank, broker, investment trust, pension fund,
3building and loan association, savings and loan association,
4insurance company, venture capital company, or other
5institution approved by the Authority which provides a portion
6of the financing for a project.
7    (jj) The term "loan participation" means any loan in which
8the Authority co-operates with a participating lender to
9provide all or a portion of the financing for a project.
10    (kk) The term "PACE Project" means an energy project as
11defined in Section 5 of the Property Assessed Clean Energy
13    (ll) The term "clean energy" means energy generation that
14is substantially free (90% or more) of carbon dioxide
15emissions by design or operations, or that otherwise
16contributes to the reduction in emissions of environmentally
17hazardous materials or reduces the volume of environmentally
18dangerous materials, or that is generated by renewable energy
19resources as defined in the Illinois Power Agency Act.
20    (mm) The term "clean energy project" means the
21acquisition, construction, refurbishment, creation,
22development or redevelopment of any facility, equipment,
23machinery, real property, or personal property for use by the
24State or any unit of local government, school district, agency
25or instrumentality, office, department, division, bureau,
26commission, college, or university of the State, for use by



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1any person or institution, public or private, for profit or
2not for profit, or for use in any trade or business, which the
3Authority determines will aid, assist, or encourage the
4development or implementation of clean energy in the State, or
5as otherwise contemplated by Article 850.
6    (nn) The term "Climate Bank" means the Authority in the
7exercise of those powers conferred on it by this Act related to
8clean energy or clean water, drinking water, or wastewater
10    (oo) "Equity investment eligible community" and "eligible
11community" mean the geographic areas throughout Illinois that
12would most benefit from equitable investments by the State
13designed to combat discrimination. Specifically, the eligible
14communities shall be defined as the following areas:
15        (1) R3 Areas as established pursuant to Section 10-40
16    of the Cannabis Regulation and Tax Act, where residents
17    have historically been excluded from economic
18    opportunities, including opportunities in the energy
19    sector; and
20        (2) Environmental justice communities, as defined by
21    the Illinois Power Agency pursuant to the Illinois Power
22    Agency Act, where residents have historically been subject
23    to disproportionate burdens of pollution, including
24    pollution from the energy sector.
25    (pp) "Equity investment eligible person" and "eligible
26person" mean the persons who would most benefit from equitable



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1investments by the State designed to combat discrimination.
2Specifically, eligible persons means the following people:
3        (1) persons whose primary residence is in an equity
4    investment eligible community;
5        (2) persons who are graduates of or currently enrolled
6    in the foster care system; or
7        (3) persons who were formerly incarcerated.
8    (qq) "Environmental justice community" means the
9definition of that term based on existing methodologies and
10findings used and as may be updated by the Illinois Power
11Agency and its program administrator in the Illinois Solar for
12All Program.
13(Source: P.A. 101-610, eff. 1-1-20; 102-662, eff. 9-15-21.)
14    Section 1-7. The Illinois Power Agency Act is amended by
15changing Sections 1-10 and 1-75 as follows:
16    (20 ILCS 3855/1-10)
17    Sec. 1-10. Definitions.
18    "Agency" means the Illinois Power Agency.
19    "Agency loan agreement" means any agreement pursuant to
20which the Illinois Finance Authority agrees to loan the
21proceeds of revenue bonds issued with respect to a project to
22the Agency upon terms providing for loan repayment
23installments at least sufficient to pay when due all principal
24of, interest and premium, if any, on those revenue bonds, and



10200SB3866ham008- 23 -LRB102 24630 LNS 38948 a

1providing for maintenance, insurance, and other matters in
2respect of the project.
3    "Authority" means the Illinois Finance Authority.
4    "Brownfield site photovoltaic project" means photovoltaics
5that are either:
6        (1) interconnected to an electric utility as defined
7    in this Section, a municipal utility as defined in this
8    Section, a public utility as defined in Section 3-105 of
9    the Public Utilities Act, or an electric cooperative as
10    defined in Section 3-119 of the Public Utilities Act and
11    located at a site that is regulated by any of the following
12    entities under the following programs:
13            (A) the United States Environmental Protection
14        Agency under the federal Comprehensive Environmental
15        Response, Compensation, and Liability Act of 1980, as
16        amended;
17            (B) the United States Environmental Protection
18        Agency under the Corrective Action Program of the
19        federal Resource Conservation and Recovery Act, as
20        amended;
21            (C) the Illinois Environmental Protection Agency
22        under the Illinois Site Remediation Program; or
23            (D) the Illinois Environmental Protection Agency
24        under the Illinois Solid Waste Program; or
25        (2) located at the site of a coal mine that has
26    permanently ceased coal production, permanently halted any



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1    re-mining operations, and is no longer accepting any coal
2    combustion residues; has both completed all clean-up and
3    remediation obligations under the federal Surface Mining
4    and Reclamation Act of 1977 and all applicable Illinois
5    rules and any other clean-up, remediation, or ongoing
6    monitoring to safeguard the health and well-being of the
7    people of the State of Illinois, as well as demonstrated
8    compliance with all applicable federal and State
9    environmental rules and regulations, including, but not
10    limited, to 35 Ill. Adm. Code Part 845 and any rules for
11    historic fill of coal combustion residuals, including any
12    rules finalized in Subdocket A of Illinois Pollution
13    Control Board docket R2020-019.
14    "Clean coal facility" means an electric generating
15facility that uses primarily coal as a feedstock and that
16captures and sequesters carbon dioxide emissions at the
17following levels: at least 50% of the total carbon dioxide
18emissions that the facility would otherwise emit if, at the
19time construction commences, the facility is scheduled to
20commence operation before 2016, at least 70% of the total
21carbon dioxide emissions that the facility would otherwise
22emit if, at the time construction commences, the facility is
23scheduled to commence operation during 2016 or 2017, and at
24least 90% of the total carbon dioxide emissions that the
25facility would otherwise emit if, at the time construction
26commences, the facility is scheduled to commence operation



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1after 2017. The power block of the clean coal facility shall
2not exceed allowable emission rates for sulfur dioxide,
3nitrogen oxides, carbon monoxide, particulates and mercury for
4a natural gas-fired combined-cycle facility the same size as
5and in the same location as the clean coal facility at the time
6the clean coal facility obtains an approved air permit. All
7coal used by a clean coal facility shall have high volatile
8bituminous rank and greater than 1.7 pounds of sulfur per
9million btu content, unless the clean coal facility does not
10use gasification technology and was operating as a
11conventional coal-fired electric generating facility on June
121, 2009 (the effective date of Public Act 95-1027).
13    "Clean coal SNG brownfield facility" means a facility that
14(1) has commenced construction by July 1, 2015 on an urban
15brownfield site in a municipality with at least 1,000,000
16residents; (2) uses a gasification process to produce
17substitute natural gas; (3) uses coal as at least 50% of the
18total feedstock over the term of any sourcing agreement with a
19utility and the remainder of the feedstock may be either
20petroleum coke or coal, with all such coal having a high
21bituminous rank and greater than 1.7 pounds of sulfur per
22million Btu content unless the facility reasonably determines
23that it is necessary to use additional petroleum coke to
24deliver additional consumer savings, in which case the
25facility shall use coal for at least 35% of the total feedstock
26over the term of any sourcing agreement; and (4) captures and



10200SB3866ham008- 26 -LRB102 24630 LNS 38948 a

1sequesters at least 85% of the total carbon dioxide emissions
2that the facility would otherwise emit.
3    "Clean coal SNG facility" means a facility that uses a
4gasification process to produce substitute natural gas, that
5sequesters at least 90% of the total carbon dioxide emissions
6that the facility would otherwise emit, that uses at least 90%
7coal as a feedstock, with all such coal having a high
8bituminous rank and greater than 1.7 pounds of sulfur per
9million btu content, and that has a valid and effective permit
10to construct emission sources and air pollution control
11equipment and approval with respect to the federal regulations
12for Prevention of Significant Deterioration of Air Quality
13(PSD) for the plant pursuant to the federal Clean Air Act;
14provided, however, a clean coal SNG brownfield facility shall
15not be a clean coal SNG facility.
16    "Clean energy" means energy generation that is 90% or
17greater free of carbon dioxide emissions or is generated by a
18renewable energy resource.
19    "Commission" means the Illinois Commerce Commission.
20    "Community renewable generation project" means an electric
21generating facility that:
22        (1) is powered by a renewable energy resource wind,
23    solar thermal energy, photovoltaic cells or panels,
24    biodiesel, crops and untreated and unadulterated organic
25    waste biomass, and hydropower that does not involve new
26    construction or significant expansion of hydropower dams;



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1        (2) is interconnected at the distribution system level
2    of an electric utility as defined in this Section, a
3    municipal utility as defined in this Section that owns or
4    operates electric distribution facilities, a public
5    utility as defined in Section 3-105 of the Public
6    Utilities Act, or an electric cooperative, as defined in
7    Section 3-119 of the Public Utilities Act;
8        (3) credits the value of electricity generated by the
9    facility to the subscribers of the facility; and
10        (4) is limited in nameplate capacity to less than or
11    equal to 5,000 kilowatts.
12    "Costs incurred in connection with the development and
13construction of a facility" means:
14        (1) the cost of acquisition of all real property,
15    fixtures, and improvements in connection therewith and
16    equipment, personal property, and other property, rights,
17    and easements acquired that are deemed necessary for the
18    operation and maintenance of the facility;
19        (2) financing costs with respect to bonds, notes, and
20    other evidences of indebtedness of the Agency;
21        (3) all origination, commitment, utilization,
22    facility, placement, underwriting, syndication, credit
23    enhancement, and rating agency fees;
24        (4) engineering, design, procurement, consulting,
25    legal, accounting, title insurance, survey, appraisal,
26    escrow, trustee, collateral agency, interest rate hedging,



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1    interest rate swap, capitalized interest, contingency, as
2    required by lenders, and other financing costs, and other
3    expenses for professional services; and
4        (5) the costs of plans, specifications, site study and
5    investigation, installation, surveys, other Agency costs
6    and estimates of costs, and other expenses necessary or
7    incidental to determining the feasibility of any project,
8    together with such other expenses as may be necessary or
9    incidental to the financing, insuring, acquisition, and
10    construction of a specific project and starting up,
11    commissioning, and placing that project in operation.
12    "Delivery services" has the same definition as found in
13Section 16-102 of the Public Utilities Act.
14    "Delivery year" means the consecutive 12-month period
15beginning June 1 of a given year and ending May 31 of the
16following year.
17    "Department" means the Department of Commerce and Economic
19    "Director" means the Director of the Illinois Power
21    "Demand-response" means measures that decrease peak
22electricity demand or shift demand from peak to off-peak
24    "Distributed renewable energy generation device" means a
25device that is:
26        (1) powered by a renewable energy resource wind, solar



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1    thermal energy, photovoltaic cells or panels, biodiesel,
2    crops and untreated and unadulterated organic waste
3    biomass, tree waste, and hydropower that does not involve
4    new construction or significant expansion of hydropower
5    dams, waste heat to power systems, or qualified combined
6    heat and power systems;
7        (2) interconnected at the distribution system level of
8    either an electric utility as defined in this Section, a
9    municipal utility as defined in this Section that owns or
10    operates electric distribution facilities, or a rural
11    electric cooperative as defined in Section 3-119 of the
12    Public Utilities Act;
13        (3) located on the customer side of the customer's
14    electric meter and is primarily used to offset that
15    customer's electricity load; and
16        (4) (blank).
17    "Energy efficiency" means measures that reduce the amount
18of electricity or natural gas consumed in order to achieve a
19given end use. "Energy efficiency" includes voltage
20optimization measures that optimize the voltage at points on
21the electric distribution voltage system and thereby reduce
22electricity consumption by electric customers' end use
23devices. "Energy efficiency" also includes measures that
24reduce the total Btus of electricity, natural gas, and other
25fuels needed to meet the end use or uses.
26    "Electric utility" has the same definition as found in



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1Section 16-102 of the Public Utilities Act.
2    "Equity investment eligible community" or "eligible
3community" are synonymous and mean the geographic areas
4throughout Illinois which would most benefit from equitable
5investments by the State designed to combat discrimination.
6Specifically, the eligible communities shall be defined as the
7following areas:
8        (1) R3 Areas as established pursuant to Section 10-40
9    of the Cannabis Regulation and Tax Act, where residents
10    have historically been excluded from economic
11    opportunities, including opportunities in the energy
12    sector; and
13        (2) Environmental justice communities, as defined by
14    the Illinois Power Agency pursuant to the Illinois Power
15    Agency Act, where residents have historically been subject
16    to disproportionate burdens of pollution, including
17    pollution from the energy sector.
18    "Equity eligible persons" or "eligible persons" means
19persons who would most benefit from equitable investments by
20the State designed to combat discrimination, specifically:
21        (1) persons who graduate from or are current or former
22    participants in the Clean Jobs Workforce Network Program,
23    the Clean Energy Contractor Incubator Program, the
24    Illinois Climate Works Preapprenticeship Program,
25    Returning Residents Clean Jobs Training Program, or the
26    Clean Energy Primes Contractor Accelerator Program, and



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1    the solar training pipeline and multi-cultural jobs
2    program created in paragraphs (a)(1) and (a)(3) of Section
3    16-108.21 of the Public Utilities Act;
4        (2) persons who are graduates of or currently enrolled
5    in the foster care system;
6        (3) persons who were formerly incarcerated;
7        (4) persons whose primary residence is in an equity
8    investment eligible community.
9    "Equity eligible contractor" means a business that is
10majority-owned by eligible persons, or a nonprofit or
11cooperative that is majority-governed by eligible persons, or
12is a natural person that is an eligible person offering
13personal services as an independent contractor.
14    "Facility" means an electric generating unit or a
15co-generating unit that produces electricity along with
16related equipment necessary to connect the facility to an
17electric transmission or distribution system.
18    "General Contractor" means the entity or organization with
19main responsibility for the building of a construction project
20and who is the party signing the prime construction contract
21for the project.
22    "Governmental aggregator" means one or more units of local
23government that individually or collectively procure
24electricity to serve residential retail electrical loads
25located within its or their jurisdiction.
26    "High voltage direct current converter station" means the



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1collection of equipment that converts direct current energy
2from a high voltage direct current transmission line into
3alternating current using Voltage Source Conversion technology
4and that is interconnected with transmission or distribution
5assets located in Illinois.
6    "High voltage direct current renewable energy credit"
7means a renewable energy credit associated with a renewable
8energy resource where the renewable energy resource has
9entered into a contract to transmit the energy associated with
10such renewable energy credit over high voltage direct current
11transmission facilities.
12    "High voltage direct current transmission facilities"
13means the collection of installed equipment that converts
14alternating current energy in one location to direct current
15and transmits that direct current energy to a high voltage
16direct current converter station using Voltage Source
17Conversion technology. "High voltage direct current
18transmission facilities" includes the high voltage direct
19current converter station itself and associated high voltage
20direct current transmission lines. Notwithstanding the
21preceding, after the effective date of this amendatory Act of
22the 102nd General Assembly, an otherwise qualifying collection
23of equipment does not qualify as high voltage direct current
24transmission facilities unless its developer entered into a
25project labor agreement, is capable of transmitting
26electricity at 525kv with an Illinois converter station



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1located and interconnected in the region of the PJM
2Interconnection, LLC, and the system does not operate as a
3public utility, as that term is defined in Section 3-105 of the
4Public Utilities Act.
5    "Index price" means the real-time energy settlement price
6at the applicable Illinois trading hub, such as PJM-NIHUB or
7MISO-IL, for a given settlement period.
8    "Indexed renewable energy credit" means a tradable credit
9that represents the environmental attributes of one megawatt
10hour of energy produced from a renewable energy resource, the
11price of which shall be calculated by subtracting the strike
12price offered by a new utility-scale wind project or a new
13utility-scale photovoltaic project from the index price in a
14given settlement period.
15    "Indexed renewable energy credit counterparty" has the
16same meaning as "public utility" as defined in Section 3-105
17of the Public Utilities Act.
18    "Local government" means a unit of local government as
19defined in Section 1 of Article VII of the Illinois
21    "Municipality" means a city, village, or incorporated
23    "Municipal utility" means a public utility owned and
24operated by any subdivision or municipal corporation of this
26    "Nameplate capacity" means the aggregate inverter



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1nameplate capacity in kilowatts AC.
2    "Person" means any natural person, firm, partnership,
3corporation, either domestic or foreign, company, association,
4limited liability company, joint stock company, or association
5and includes any trustee, receiver, assignee, or personal
6representative thereof.
7    "Project" means the planning, bidding, and construction of
8a facility.
9    "Project labor agreement" means a pre-hire collective
10bargaining agreement that covers all terms and conditions of
11employment on a specific construction project and must include
12the following:
13        (1) provisions establishing the minimum hourly wage
14    for each class of labor organization employee;
15        (2) provisions establishing the benefits and other
16    compensation for each class of labor organization
17    employee;
18        (3) provisions establishing that no strike or disputes
19    will be engaged in by the labor organization employees;
20        (4) provisions establishing that no lockout or
21    disputes will be engaged in by the general contractor
22    building the project; and
23        (5) provisions for minorities and women, as defined
24    under the Business Enterprise for Minorities, Women, and
25    Persons with Disabilities Act, setting forth goals for
26    apprenticeship hours to be performed by minorities and



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1    women and setting forth goals for total hours to be
2    performed by underrepresented minorities and women.
3    A labor organization and the general contractor building
4the project shall have the authority to include other terms
5and conditions as they deem necessary.
6    "Public utility" has the same definition as found in
7Section 3-105 of the Public Utilities Act.
8    "Qualified combined heat and power systems" means systems
9that, either simultaneously or sequentially, produce
10electricity and useful thermal energy from a single fuel
11source. Such systems are eligible for "renewable energy
12credits" in an amount equal to its total energy output where a
13renewable fuel is consumed or in an amount equal to the net
14reduction in nonrenewable fuel consumed on a total energy
15output basis.
16    "Real property" means any interest in land together with
17all structures, fixtures, and improvements thereon, including
18lands under water and riparian rights, any easements,
19covenants, licenses, leases, rights-of-way, uses, and other
20interests, together with any liens, judgments, mortgages, or
21other claims or security interests related to real property.
22    "Renewable energy credit" means a tradable credit that
23represents the environmental attributes of one megawatt hour
24of energy produced from a renewable energy resource.
25    "Renewable energy resources" includes energy and its
26associated renewable energy credit or renewable energy credits



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1from wind, solar thermal energy, photovoltaic cells and
2panels, biofuels, hydrogen, other carbon neutral fuels
3biodiesel, anaerobic digestion, crops and untreated and
4unadulterated organic waste biomass, and hydropower that does
5not involve new construction or significant expansion of
6hydropower dams, waste heat to power systems, or qualified
7combined heat and power systems. For purposes of this Act,
8landfill gas produced in the State is considered a renewable
9energy resource. "Renewable energy resources" does not include
10the incineration or burning of tires, garbage, general
11household, institutional, and commercial waste, industrial
12lunchroom or office waste, landscape waste, railroad
13crossties, utility poles, or construction or demolition
14debris, other than untreated and unadulterated waste wood.
15"Renewable energy resources" also includes high voltage direct
16current renewable energy credits and the associated energy
17converted to alternating current by a high voltage direct
18current converter station to the extent that: (1) the
19generator of such renewable energy resource contracted with a
20third party to transmit the energy over the high voltage
21direct current transmission facilities, and (2) the
22third-party contracting for delivery of renewable energy
23resources over the high voltage direct current transmission
24facilities have ownership rights over the unretired associated
25high voltage direct current renewable energy credit.
26    "Retail customer" has the same definition as found in



10200SB3866ham008- 37 -LRB102 24630 LNS 38948 a

1Section 16-102 of the Public Utilities Act.
2    "Revenue bond" means any bond, note, or other evidence of
3indebtedness issued by the Authority, the principal and
4interest of which is payable solely from revenues or income
5derived from any project or activity of the Agency.
6    "Sequester" means permanent storage of carbon dioxide by
7injecting it into a saline aquifer, a depleted gas reservoir,
8or an oil reservoir, directly or through an enhanced oil
9recovery process that may involve intermediate storage,
10regardless of whether these activities are conducted by a
11clean coal facility, a clean coal SNG facility, a clean coal
12SNG brownfield facility, or a party with which a clean coal
13facility, clean coal SNG facility, or clean coal SNG
14brownfield facility has contracted for such purposes.
15    "Service area" has the same definition as found in Section
1616-102 of the Public Utilities Act.
17    "Settlement period" means the period of time utilized by
18MISO and PJM and their successor organizations as the basis
19for settlement calculations in the real-time energy market.
20    "Sourcing agreement" means (i) in the case of an electric
21utility, an agreement between the owner of a clean coal
22facility and such electric utility, which agreement shall have
23terms and conditions meeting the requirements of paragraph (3)
24of subsection (d) of Section 1-75, (ii) in the case of an
25alternative retail electric supplier, an agreement between the
26owner of a clean coal facility and such alternative retail



10200SB3866ham008- 38 -LRB102 24630 LNS 38948 a

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



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



10200SB3866ham008- 40 -LRB102 24630 LNS 38948 a

1gases. In discounting future societal costs and benefits for
2the purpose of calculating net present values, a societal
3discount rate based on actual, long-term Treasury bond yields
4should be used. Notwithstanding anything to the contrary, the
5TRC test shall not include or take into account a calculation
6of market price suppression effects or demand reduction
7induced price effects.
8    "Utility-scale solar project" means an electric generating
9facility that:
10        (1) generates electricity using photovoltaic cells;
11    and
12        (2) has a nameplate capacity that is greater than
13    5,000 kilowatts.
14    "Utility-scale wind project" means an electric generating
15facility that:
16        (1) generates electricity using wind; and
17        (2) has a nameplate capacity that is greater than
18    5,000 kilowatts.
19    "Waste Heat to Power Systems" means systems that capture
20and generate electricity from energy that would otherwise be
21lost to the atmosphere without the use of additional fuel.
22    "Zero emission credit" means a tradable credit that
23represents the environmental attributes of one megawatt hour
24of energy produced from a zero emission facility.
25    "Zero emission facility" means a facility that: (1) is
26fueled by nuclear power; and (2) is interconnected with PJM



10200SB3866ham008- 41 -LRB102 24630 LNS 38948 a

1Interconnection, LLC or the Midcontinent Independent System
2Operator, Inc., or their successors.
3(Source: P.A. 102-662, eff. 9-15-21.)
4    (20 ILCS 3855/1-75)
5    Sec. 1-75. Planning and Procurement Bureau. The Planning
6and Procurement Bureau has the following duties and
8    (a) The Planning and Procurement Bureau shall each year,
9beginning in 2008, develop procurement plans and conduct
10competitive procurement processes in accordance with the
11requirements of Section 16-111.5 of the Public Utilities Act
12for the eligible retail customers of electric utilities that
13on December 31, 2005 provided electric service to at least
14100,000 customers in Illinois. Beginning with the delivery
15year commencing on June 1, 2017, the Planning and Procurement
16Bureau shall develop plans and processes for the procurement
17of zero emission credits from zero emission facilities in
18accordance with the requirements of subsection (d-5) of this
19Section. Beginning on the effective date of this amendatory
20Act of the 102nd General Assembly, the Planning and
21Procurement Bureau shall develop plans and processes for the
22procurement of carbon mitigation credits from carbon-free
23energy resources in accordance with the requirements of
24subsection (d-10) of this Section. The Planning and
25Procurement Bureau shall also develop procurement plans and



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1conduct competitive procurement processes in accordance with
2the requirements of Section 16-111.5 of the Public Utilities
3Act for the eligible retail customers of small
4multi-jurisdictional electric utilities that (i) on December
531, 2005 served less than 100,000 customers in Illinois and
6(ii) request a procurement plan for their Illinois
7jurisdictional load. This Section shall not apply to a small
8multi-jurisdictional utility until such time as a small
9multi-jurisdictional utility requests the Agency to prepare a
10procurement plan for their Illinois jurisdictional load. For
11the purposes of this Section, the term "eligible retail
12customers" has the same definition as found in Section
1316-111.5(a) of the Public Utilities Act.
14    Beginning with the plan or plans to be implemented in the
152017 delivery year, the Agency shall no longer include the
16procurement of renewable energy resources in the annual
17procurement plans required by this subsection (a), except as
18provided in subsection (q) of Section 16-111.5 of the Public
19Utilities Act, and shall instead develop a long-term renewable
20resources procurement plan in accordance with subsection (c)
21of this Section and Section 16-111.5 of the Public Utilities
23    In accordance with subsection (c-5) of this Section, the
24Planning and Procurement Bureau shall oversee the procurement
25by electric utilities that served more than 300,000 retail
26customers in this State as of January 1, 2019 of renewable



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1energy credits from new utility-scale solar projects to be
2installed, along with energy storage facilities, at or
3adjacent to the sites of electric generating facilities that,
4as of January 1, 2016, burned coal as their primary fuel
6        (1) The Agency shall each year, beginning in 2008, as
7    needed, issue a request for qualifications for experts or
8    expert consulting firms to develop the procurement plans
9    in accordance with Section 16-111.5 of the Public
10    Utilities Act. In order to qualify an expert or expert
11    consulting firm must have:
12            (A) direct previous experience assembling
13        large-scale power supply plans or portfolios for
14        end-use customers;
15            (B) an advanced degree in economics, mathematics,
16        engineering, risk management, or a related area of
17        study;
18            (C) 10 years of experience in the electricity
19        sector, including managing supply risk;
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 protocols and familiarity
25        with contract protocols;
26            (F) adequate resources to perform and fulfill the



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



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



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1    filing a petition, and the Commission shall render a
2    ruling on the petition within 10 days. There is no right of
3    appeal of the Commission's ruling.
4        (4) The Agency shall issue requests for proposals to
5    the qualified experts or expert consulting firms to
6    develop a procurement plan for the affected utilities and
7    to serve as procurement administrator.
8        (5) The Agency shall select an expert or expert
9    consulting firm to develop procurement plans based on the
10    proposals submitted and shall award contracts of up to 5
11    years to those selected.
12        (6) The Agency shall select an expert or expert
13    consulting firm, with approval of the Commission, to serve
14    as procurement administrator based on the proposals
15    submitted. If the Commission rejects, within 5 days, the
16    Agency's selection, the Agency shall submit another
17    recommendation within 3 days based on the proposals
18    submitted. The Agency shall award a 5-year contract to the
19    expert or expert consulting firm so selected with
20    Commission approval.
21    (b) The experts or expert consulting firms retained by the
22Agency shall, as appropriate, prepare procurement plans, and
23conduct a competitive procurement process as prescribed in
24Section 16-111.5 of the Public Utilities Act, to ensure
25adequate, reliable, affordable, efficient, and environmentally
26sustainable electric service at the lowest total cost over



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1time, taking into account any benefits of price stability, for
2eligible retail customers of electric utilities that on
3December 31, 2005 provided electric service to at least
4100,000 customers in the State of Illinois, and for eligible
5Illinois retail customers of small multi-jurisdictional
6electric utilities that (i) on December 31, 2005 served less
7than 100,000 customers in Illinois and (ii) request a
8procurement plan for their Illinois jurisdictional load.
9    (c) Renewable portfolio standard.
10        (1)(A) The Agency shall develop a long-term renewable
11    resources procurement plan that shall include procurement
12    programs and competitive procurement events necessary to
13    meet the goals set forth in this subsection (c). The
14    initial long-term renewable resources procurement plan
15    shall be released for comment no later than 160 days after
16    June 1, 2017 (the effective date of Public Act 99-906).
17    The Agency shall review, and may revise on an expedited
18    basis, the long-term renewable resources procurement plan
19    at least every 2 years, which shall be conducted in
20    conjunction with the procurement plan under Section
21    16-111.5 of the Public Utilities Act to the extent
22    practicable to minimize administrative expense. No later
23    than 120 days after the effective date of this amendatory
24    Act of the 102nd General Assembly, the Agency shall
25    release for comment a revision to the long-term renewable
26    resources procurement plan, updating elements of the most



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



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1    compliance with the new wind and new photovoltaic
2    procurement requirements described in items (i) through
3    (iii) of subparagraph (C) of this paragraph (1) over the
4    annual percentage targets described in this subparagraph
5    (B). The Agency shall not comply with the annual
6    percentage targets described in this subparagraph (B) by
7    procuring renewable energy credits that are unlikely to
8    lead to the development of new renewable resources.
9        For the delivery year beginning June 1, 2017, the
10    procurement plan shall attempt to include, subject to the
11    prioritization outlined in this subparagraph (B),
12    cost-effective renewable energy resources equal to at
13    least 13% of each utility's load for eligible retail
14    customers and 13% of the applicable portion of each
15    utility's load for retail customers who are not eligible
16    retail customers, which applicable portion shall equal 50%
17    of the utility's load for retail customers who are not
18    eligible retail customers on February 28, 2017.
19        For the delivery year beginning June 1, 2018, the
20    procurement plan shall attempt to include, subject to the
21    prioritization outlined in this subparagraph (B),
22    cost-effective renewable energy resources equal to at
23    least 14.5% of each utility's load for eligible retail
24    customers and 14.5% of the applicable portion of each
25    utility's load for retail customers who are not eligible
26    retail customers, which applicable portion shall equal 75%



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



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1    described in subparagraph (A) of this paragraph (1) shall
2    include the procurement of renewable energy credits from
3    new projects in amounts equal to at least the following:
4            (i) 10,000,000 renewable energy credits delivered
5        annually by the end of the 2021 delivery year, and
6        increasing ratably to reach 45,000,000 renewable
7        energy credits delivered annually from new wind, and
8        solar, and other renewable energy resource projects by
9        the end of delivery year 2030 such that the goals in
10        subparagraph (B) of this paragraph (1) are met 75%
11        entirely by procurements of renewable energy credits
12        from new wind and photovoltaic projects and 25% by
13        other renewable energy resources such that the State
14        maintains a sufficient, diverse, reliable, and
15        cost-effective renewable energy resources mix. Of the
16        75% of procurements from new wind and photovoltaic
17        projects that amount, to the extent possible, the
18        Agency shall procure 45% from wind projects and 55%
19        from photovoltaic projects. Of the amount to be
20        procured from photovoltaic projects, the Agency shall
21        procure: at least 50% from solar photovoltaic projects
22        using the program outlined in subparagraph (K) of this
23        paragraph (1) from distributed renewable energy
24        generation devices or community renewable generation
25        projects; at least 47% from utility-scale solar
26        projects; at least 3% from brownfield site



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1        photovoltaic projects that are not community renewable
2        generation projects. To the extent that during any
3        delivery year the Agency is unable to procure
4        sufficient renewable energy credits to meet one or
5        more of these categorical percentages, the Agency
6        shall attempt to meet the overall annual procurement
7        goals provided in this Section by procuring renewable
8        energy credits from another category of renewable
9        energy resources.
10            In developing the long-term renewable resources
11        procurement plan, the Agency shall consider other
12        approaches, in addition to competitive procurements,
13        that can be used to procure renewable energy credits
14        from brownfield site photovoltaic projects and thereby
15        help return blighted or contaminated land to
16        productive use while enhancing public health and the
17        well-being of Illinois residents, including those in
18        environmental justice communities, as defined using
19        existing methodologies and findings used by the Agency
20        and its Administrator in its Illinois Solar for All
21        Program.
22            (ii) In any given delivery year, if forecasted
23        expenses are less than the maximum budget available
24        under subparagraph (E) of this paragraph (1), the
25        Agency shall continue to procure new renewable energy
26        credits until that budget is exhausted in the manner



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1        outlined in item (i) of this subparagraph (C).
2            (iii) For purposes of this Section:
3            "New wind projects" means wind renewable energy
4        facilities that are energized after June 1, 2017 for
5        the delivery year commencing June 1, 2017.
6            "New photovoltaic projects" means photovoltaic
7        renewable energy facilities that are energized after
8        June 1, 2017. Photovoltaic projects developed under
9        Section 1-56 of this Act shall not apply towards the
10        new photovoltaic project requirements in this
11        subparagraph (C).
12            For purposes of calculating whether the Agency has
13        procured enough new wind and solar renewable energy
14        credits required by this subparagraph (C), renewable
15        energy facilities that have a multi-year renewable
16        energy credit delivery contract with the utility
17        through at least delivery year 2030 shall be
18        considered new, however no renewable energy credits
19        from contracts entered into before June 1, 2021 shall
20        be used to calculate whether the Agency has procured
21        the correct proportion of new wind and new solar
22        contracts described in this subparagraph (C) for
23        delivery year 2021 and thereafter.
24        (D) Renewable energy credits shall be cost effective.
25    For purposes of this subsection (c), "cost effective"
26    means that the costs of procuring renewable energy



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1    resources do not cause the limit stated in subparagraph
2    (E) of this paragraph (1) to be exceeded and, for
3    renewable energy credits procured through a competitive
4    procurement event, do not exceed benchmarks based on
5    market prices for like products in the region. For
6    purposes of this subsection (c), "like products" means
7    contracts for renewable energy credits from the same or
8    substantially similar technology, same or substantially
9    similar vintage (new or existing), the same or
10    substantially similar quantity, and the same or
11    substantially similar contract length and structure.
12    Benchmarks shall reflect development, financing, or
13    related costs resulting from requirements imposed through
14    other provisions of State law, including, but not limited
15    to, requirements in subparagraphs (P) and (Q) of this
16    paragraph (1) and the Renewable Energy Facilities
17    Agricultural Impact Mitigation Act. Confidential
18    benchmarks shall be developed by the procurement
19    administrator, in consultation with the Commission staff,
20    Agency staff, and the procurement monitor and shall be
21    subject to Commission review and approval. If price
22    benchmarks for like products in the region are not
23    available, the procurement administrator shall establish
24    price benchmarks based on publicly available data on
25    regional technology costs and expected current and future
26    regional energy prices. The benchmarks in this Section



10200SB3866ham008- 55 -LRB102 24630 LNS 38948 a

1    shall not be used to curtail or otherwise reduce
2    contractual obligations entered into by or through the
3    Agency prior to June 1, 2017 (the effective date of Public
4    Act 99-906).
5        (E) For purposes of this subsection (c), the required
6    procurement of cost-effective renewable energy resources
7    for a particular year commencing prior to June 1, 2017
8    shall be measured as a percentage of the actual amount of
9    electricity (megawatt-hours) supplied by the electric
10    utility to eligible retail customers in the delivery year
11    ending immediately prior to the procurement, and, for
12    delivery years commencing on and after June 1, 2017, the
13    required procurement of cost-effective renewable energy
14    resources for a particular year shall be measured as a
15    percentage of the actual amount of electricity
16    (megawatt-hours) delivered by the electric utility in the
17    delivery year ending immediately prior to the procurement,
18    to all retail customers in its service territory. For
19    purposes of this subsection (c), the amount paid per
20    kilowatthour means the total amount paid for electric
21    service expressed on a per kilowatthour basis. For
22    purposes of this subsection (c), the total amount paid for
23    electric service includes without limitation amounts paid
24    for supply, transmission, capacity, distribution,
25    surcharges, and add-on taxes.
26        Notwithstanding the requirements of this subsection



10200SB3866ham008- 56 -LRB102 24630 LNS 38948 a

1    (c), the total of renewable energy resources procured
2    under the procurement plan for any single year shall be
3    subject to the limitations of this subparagraph (E). Such
4    procurement shall be reduced for all retail customers
5    based on the amount necessary to limit the annual
6    estimated average net increase due to the costs of these
7    resources included in the amounts paid by eligible retail
8    customers in connection with electric service to no more
9    than 4.25% of the amount paid per kilowatthour by those
10    customers during the year ending May 31, 2009. To arrive
11    at a maximum dollar amount of renewable energy resources
12    to be procured for the particular delivery year, the
13    resulting per kilowatthour amount shall be applied to the
14    actual amount of kilowatthours of electricity delivered,
15    or applicable portion of such amount as specified in
16    paragraph (1) of this subsection (c), as applicable, by
17    the electric utility in the delivery year immediately
18    prior to the procurement to all retail customers in its
19    service territory. The calculations required by this
20    subparagraph (E) shall be made only once for each delivery
21    year at the time that the renewable energy resources are
22    procured. Once the determination as to the amount of
23    renewable energy resources to procure is made based on the
24    calculations set forth in this subparagraph (E) and the
25    contracts procuring those amounts are executed, no
26    subsequent rate impact determinations shall be made and no



10200SB3866ham008- 57 -LRB102 24630 LNS 38948 a

1    adjustments to those contract amounts shall be allowed.
2    All costs incurred under such contracts shall be fully
3    recoverable by the electric utility as provided in this
4    Section.
5        (F) If the limitation on the amount of renewable
6    energy resources procured in subparagraph (E) of this
7    paragraph (1) prevents the Agency from meeting all of the
8    goals in this subsection (c), the Agency's long-term plan
9    shall prioritize compliance with the requirements of this
10    subsection (c) regarding renewable energy credits in the
11    following order:
12            (i) renewable energy credits under existing
13        contractual obligations as of June 1, 2021;
14            (i-5) funding for the Illinois Solar for All
15        Program, as described in subparagraph (O) of this
16        paragraph (1);
17            (ii) renewable energy credits necessary to comply
18        with the new wind and new photovoltaic procurement
19        requirements described in items (i) through (iii) of
20        subparagraph (C) of this paragraph (1); and
21            (iii) renewable energy credits necessary to meet
22        the remaining requirements of this subsection (c).
23        (G) The following provisions shall apply to the
24    Agency's procurement of renewable energy credits under
25    this subsection (c):
26            (i) Notwithstanding whether a long-term renewable



10200SB3866ham008- 58 -LRB102 24630 LNS 38948 a

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



10200SB3866ham008- 59 -LRB102 24630 LNS 38948 a

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



10200SB3866ham008- 60 -LRB102 24630 LNS 38948 a

1        16-111.5 of the Public Utilities Act, the Agency shall
2        conduct at least one subsequent forward procurement
3        for renewable energy credits from new utility-scale
4        wind projects, new utility-scale solar projects, and
5        new brownfield site photovoltaic projects within 240
6        days after the effective date of this amendatory Act
7        of the 102nd General Assembly in quantities necessary
8        to meet the requirements of subparagraph (C) of this
9        paragraph (1) through the delivery year beginning June
10        1, 2021.
11            (iv) Notwithstanding whether the Commission has
12        approved the periodic long-term renewable resources
13        procurement plan revision described in Section
14        16-111.5 of the Public Utilities Act, the Agency shall
15        open capacity for each category in the Adjustable
16        Block program within 90 days after the effective date
17        of this amendatory Act of the 102nd General Assembly
18        manner:
19                (1) The Agency shall open the first block of
20            annual capacity for the category described in item
21            (i) of subparagraph (K) of this paragraph (1). The
22            first block of annual capacity for item (i) shall
23            be for at least 75 megawatts of total nameplate
24            capacity. The price of the renewable energy credit
25            for this block of capacity shall be 4% less than
26            the price of the last open block in this category.



10200SB3866ham008- 61 -LRB102 24630 LNS 38948 a

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



10200SB3866ham008- 62 -LRB102 24630 LNS 38948 a

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



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



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1                quickly as possible.
2                (3) For opening the first 2 blocks of annual
3            capacity for projects participating in item (iii)
4            of subparagraph (K) of paragraph (1) of subsection
5            (c), projects shall be selected exclusively from
6            those projects on the ordinal waitlists of
7            community renewable generation projects
8            established by the Agency based on the status of
9            those ordinal waitlists as of December 31, 2020,
10            and only those projects previously determined to
11            be eligible for the Agency's April 2019 community
12            solar project selection process.
13                The first 2 blocks of annual capacity for item
14            (iii) shall be for 250 megawatts of total
15            nameplate capacity, with both blocks opening
16            simultaneously under the schedule outlined in the
17            paragraphs below. Projects shall be selected as
18            follows:
19                    (A) The geographic balance of selected
20                projects shall follow the Group classification
21                found in the Agency's Revised Long-Term
22                Renewable Resources Procurement Plan, with 70%
23                of capacity allocated to projects on the Group
24                B waitlist and 30% of capacity allocated to
25                projects on the Group A waitlist.
26                    (B) Contract awards for waitlisted



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1                projects shall be allocated proportionate to
2                the total nameplate capacity amount across
3                both ordinal waitlists associated with that
4                applicant firm or its affiliates, subject to
5                the following conditions.
6                        (i) Each applicant firm having a
7                    waitlisted project eligible for selection
8                    shall receive no less than 500 kilowatts
9                    in awarded capacity across all groups, and
10                    no approved vendor may receive more than
11                    20% of each Group's waitlist allocation.
12                        (ii) Each applicant firm, upon
13                    receiving an award of program capacity
14                    proportionate to its waitlisted capacity,
15                    may then determine which waitlisted
16                    projects it chooses to be selected for a
17                    contract award up to that capacity amount.
18                        (iii) Assuming all other program
19                    requirements are met, applicant firms may
20                    adjust the nameplate capacity of applicant
21                    projects without losing waitlist
22                    eligibility, so long as no project is
23                    greater than 2,000 kilowatts in size.
24                        (iv) Assuming all other program
25                    requirements are met, applicant firms may
26                    adjust the expected production associated



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1                    with applicant projects, subject to
2                    verification by the Program Administrator.
3                    (C) After a review of affiliate
4                information and the current ordinal waitlists,
5                the Agency shall announce the nameplate
6                capacity award amounts associated with
7                applicant firms no later than 90 days after
8                the effective date of this amendatory Act of
9                the 102nd General Assembly.
10                    (D) Applicant firms shall submit their
11                portfolio of projects used to satisfy those
12                contract awards no less than 90 days after the
13                Agency's announcement. The total nameplate
14                capacity of all projects used to satisfy that
15                portfolio shall be no greater than the
16                Agency's nameplate capacity award amount
17                associated with that applicant firm. An
18                applicant firm may decline, in whole or in
19                part, its nameplate capacity award without
20                penalty, with such unmet capacity rolled over
21                to the next block opening for project
22                selection under item (iii) of subparagraph (K)
23                of this subsection (c). Any projects not
24                included in an applicant firm's portfolio may
25                reapply without prejudice upon the next block
26                reopening for project selection under item



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1                (iii) of subparagraph (K) of this subsection
2                (c).
3                    (E) The renewable energy credit delivery
4                contract shall be subject to the contract and
5                payment terms outlined in item (iv) of
6                subparagraph (L) of this subsection (c).
7                Contract instruments used for this
8                subparagraph shall contain the following
9                terms:
10                        (i) Renewable energy credit prices
11                    shall be fixed, without further adjustment
12                    under any other provision of this Act or
13                    for any other reason, at 10% lower than
14                    prices applicable to the last open block
15                    for this category, inclusive of any adders
16                    available for achieving a minimum of 50%
17                    of subscribers to the project's nameplate
18                    capacity being residential or small
19                    commercial customers with subscriptions of
20                    below 25 kilowatts in size;
21                        (ii) A requirement that a minimum of
22                    50% of subscribers to the project's
23                    nameplate capacity be residential or small
24                    commercial customers with subscriptions of
25                    below 25 kilowatts in size;
26                        (iii) Permission for the ability of a



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



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



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



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1            capacity for this category may be adjusted in the
2            Agency's second revision to its Long-Term
3            Renewable Resources Procurement Plan. Projects in
4            this category shall be subject to the applicable
5            contract terms outlined in items (ii) and (iii) of
6            subparagraph (L) of this paragraph (1).
7            (v) Upon the effective date of this amendatory Act
8        of the 102nd General Assembly, for all competitive
9        procurements and any procurements of renewable energy
10        credit from new utility-scale wind and new
11        utility-scale photovoltaic projects, the Agency shall
12        procure indexed renewable energy credits and direct
13        respondents to offer a strike price.
14                (1) The purchase price of the indexed
15            renewable energy credit payment shall be
16            calculated for each settlement period. That
17            payment, for any settlement period, shall be equal
18            to the difference resulting from subtracting the
19            strike price from the index price for that
20            settlement period. If this difference results in a
21            negative number, the indexed REC counterparty
22            shall owe the seller the absolute value multiplied
23            by the quantity of energy produced in the relevant
24            settlement period. If this difference results in a
25            positive number, the seller shall owe the indexed
26            REC counterparty this amount multiplied by the



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1            quantity of energy produced in the relevant
2            settlement period.
3                (2) Parties shall cash settle every month,
4            summing up all settlements (both positive and
5            negative, if applicable) for the prior month.
6                (3) To ensure funding in the annual budget
7            established under subparagraph (E) for indexed
8            renewable energy credit procurements for each year
9            of the term of such contracts, which must have a
10            minimum tenure of 20 calendar years, the
11            procurement administrator, Agency, Commission
12            staff, and procurement monitor shall quantify the
13            annual cost of the contract by utilizing an
14            industry-standard, third-party forward price curve
15            for energy at the appropriate hub or load zone,
16            including the estimated magnitude and timing of
17            the price effects related to federal carbon
18            controls. Each forward price curve shall contain a
19            specific value of the forecasted market price of
20            electricity for each annual delivery year of the
21            contract. For procurement planning purposes, the
22            impact on the annual budget for the cost of
23            indexed renewable energy credits for each delivery
24            year shall be determined as the expected annual
25            contract expenditure for that year, equaling the
26            difference between (i) the sum across all relevant



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1            contracts of the applicable strike price
2            multiplied by contract quantity and (ii) the sum
3            across all relevant contracts of the forward price
4            curve for the applicable load zone for that year
5            multiplied by contract quantity. The contracting
6            utility shall not assume an obligation in excess
7            of the estimated annual cost of the contracts for
8            indexed renewable energy credits. Forward curves
9            shall be revised on an annual basis as updated
10            forward price curves are released and filed with
11            the Commission in the proceeding approving the
12            Agency's most recent long-term renewable resources
13            procurement plan. If the expected contract spend
14            is higher or lower than the total quantity of
15            contracts multiplied by the forward price curve
16            value for that year, the forward price curve shall
17            be updated by the procurement administrator, in
18            consultation with the Agency, Commission staff,
19            and procurement monitors, using then-currently
20            available price forecast data and additional
21            budget dollars shall be obligated or reobligated
22            as appropriate.
23                (4) To ensure that indexed renewable energy
24            credit prices remain predictable and affordable,
25            the Agency may consider the institution of a price
26            collar on REC prices paid under indexed renewable



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1            energy credit procurements establishing floor and
2            ceiling REC prices applicable to indexed REC
3            contract prices. Any price collars applicable to
4            indexed REC procurements shall be proposed by the
5            Agency through its long-term renewable resources
6            procurement plan.
7            (vi) All procurements under this subparagraph (G)
8        shall comply with the geographic requirements in
9        subparagraph (I) of this paragraph (1) and shall
10        follow the procurement processes and procedures
11        described in this Section and Section 16-111.5 of the
12        Public Utilities Act to the extent practicable, and
13        these processes and procedures may be expedited to
14        accommodate the schedule established by this
15        subparagraph (G).
16        (H) The procurement of renewable energy resources for
17    a given delivery year shall be reduced as described in
18    this subparagraph (H) if an alternative retail electric
19    supplier meets the requirements described in this
20    subparagraph (H).
21            (i) Within 45 days after June 1, 2017 (the
22        effective date of Public Act 99-906), an alternative
23        retail electric supplier or its successor shall submit
24        an informational filing to the Illinois Commerce
25        Commission certifying that, as of December 31, 2015,
26        the alternative retail electric supplier owned one or



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1        more electric generating facilities that generates
2        renewable energy resources as defined in Section 1-10
3        of this Act, provided that such facilities are not
4        powered by wind or photovoltaics, and the facilities
5        generate one renewable energy credit for each
6        megawatthour of energy produced from the facility.
7            The informational filing shall identify each
8        facility that was eligible to satisfy the alternative
9        retail electric supplier's obligations under Section
10        16-115D of the Public Utilities Act as described in
11        this item (i).
12            (ii) For a given delivery year, the alternative
13        retail electric supplier may elect to supply its
14        retail customers with renewable energy credits from
15        the facility or facilities described in item (i) of
16        this subparagraph (H) that continue to be owned by the
17        alternative retail electric supplier.
18            (iii) The alternative retail electric supplier
19        shall notify the Agency and the applicable utility, no
20        later than February 28 of the year preceding the
21        applicable delivery year or 15 days after June 1, 2017
22        (the effective date of Public Act 99-906), whichever
23        is later, of its election under item (ii) of this
24        subparagraph (H) to supply renewable energy credits to
25        retail customers of the utility. Such election shall
26        identify the amount of renewable energy credits to be



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1        supplied by the alternative retail electric supplier
2        to the utility's retail customers and the source of
3        the renewable energy credits identified in the
4        informational filing as described in item (i) of this
5        subparagraph (H), subject to the following
6        limitations:
7                For the delivery year beginning June 1, 2018,
8            the maximum amount of renewable energy credits to
9            be supplied by an alternative retail electric
10            supplier under this subparagraph (H) shall be 68%
11            multiplied by 25% multiplied by 14.5% multiplied
12            by the amount of metered electricity
13            (megawatt-hours) delivered by the alternative
14            retail electric supplier to Illinois retail
15            customers during the delivery year ending May 31,
16            2016.
17                For delivery years beginning June 1, 2019 and
18            each year thereafter, the maximum amount of
19            renewable energy credits to be supplied by an
20            alternative retail electric supplier under this
21            subparagraph (H) shall be 68% multiplied by 50%
22            multiplied by 16% multiplied by the amount of
23            metered electricity (megawatt-hours) delivered by
24            the alternative retail electric supplier to
25            Illinois retail customers during the delivery year
26            ending May 31, 2016, provided that the 16% value



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1            shall increase by 1.5% each delivery year
2            thereafter to 25% by the delivery year beginning
3            June 1, 2025, and thereafter the 25% value shall
4            apply to each delivery year.
5            For each delivery year, the total amount of
6        renewable energy credits supplied by all alternative
7        retail electric suppliers under this subparagraph (H)
8        shall not exceed 9% of the Illinois target renewable
9        energy credit quantity. The Illinois target renewable
10        energy credit quantity for the delivery year beginning
11        June 1, 2018 is 14.5% multiplied by the total amount of
12        metered electricity (megawatt-hours) delivered in the
13        delivery year immediately preceding that delivery
14        year, provided that the 14.5% shall increase by 1.5%
15        each delivery year thereafter to 25% by the delivery
16        year beginning June 1, 2025, and thereafter the 25%
17        value shall apply to each delivery year.
18            If the requirements set forth in items (i) through
19        (iii) of this subparagraph (H) are met, the charges
20        that would otherwise be applicable to the retail
21        customers of the alternative retail electric supplier
22        under paragraph (6) of this subsection (c) for the
23        applicable delivery year shall be reduced by the ratio
24        of the quantity of renewable energy credits supplied
25        by the alternative retail electric supplier compared
26        to that supplier's target renewable energy credit



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1        quantity. The supplier's target renewable energy
2        credit quantity for the delivery year beginning June
3        1, 2018 is 14.5% multiplied by the total amount of
4        metered electricity (megawatt-hours) delivered by the
5        alternative retail supplier in that delivery year,
6        provided that the 14.5% shall increase by 1.5% each
7        delivery year thereafter to 25% by the delivery year
8        beginning June 1, 2025, and thereafter the 25% value
9        shall apply to each delivery year.
10            On or before April 1 of each year, the Agency shall
11        annually publish a report on its website that
12        identifies the aggregate amount of renewable energy
13        credits supplied by alternative retail electric
14        suppliers under this subparagraph (H).
15        (I) The Agency shall design its long-term renewable
16    energy procurement plan to maximize the State's interest
17    in the health, safety, and welfare of its residents,
18    including but not limited to minimizing sulfur dioxide,
19    nitrogen oxide, particulate matter and other pollution
20    that adversely affects public health in this State,
21    increasing fuel and resource diversity in this State,
22    enhancing the reliability and resiliency of the
23    electricity distribution system in this State, meeting
24    goals to limit carbon dioxide emissions under federal or
25    State law, and contributing to a cleaner and healthier
26    environment for the citizens of this State. In order to



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1    further these legislative purposes, renewable energy
2    credits shall be eligible to be counted toward the
3    renewable energy requirements of this subsection (c) if
4    they are generated from facilities located in this State.
5    The Agency may qualify renewable energy credits from
6    facilities located in states adjacent to Illinois or
7    renewable energy credits associated with the electricity
8    generated by a utility-scale wind energy facility or
9    utility-scale photovoltaic facility and transmitted by a
10    qualifying direct current project described in subsection
11    (b-5) of Section 8-406 of the Public Utilities Act to a
12    delivery point on the electric transmission grid located
13    in this State or a state adjacent to Illinois, if the
14    generator demonstrates and the Agency determines that the
15    operation of such facility or facilities will help promote
16    the State's interest in the health, safety, and welfare of
17    its residents based on the public interest criteria
18    described above. For the purposes of this Section,
19    renewable resources that are delivered via a high voltage
20    direct current converter station located in Illinois shall
21    be deemed generated in Illinois at the time and location
22    the energy is converted to alternating current by the high
23    voltage direct current converter station if the high
24    voltage direct current transmission line: (i) after the
25    effective date of this amendatory Act of the 102nd General
26    Assembly, was constructed with a project labor agreement;



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1    (ii) is capable of transmitting electricity at 525kv;
2    (iii) has an Illinois converter station located and
3    interconnected in the region of the PJM Interconnection,
4    LLC; (iv) does not operate as a public utility; and (v) if
5    the high voltage direct current transmission line was
6    energized after June 1, 2023. To ensure that the public
7    interest criteria are applied to the procurement and given
8    full effect, the Agency's long-term procurement plan shall
9    describe in detail how each public interest factor shall
10    be considered and weighted for facilities located in
11    states adjacent to Illinois.
12        (J) In order to promote the competitive development of
13    renewable energy resources in furtherance of the State's
14    interest in the health, safety, and welfare of its
15    residents, renewable energy credits shall not be eligible
16    to be counted toward the renewable energy requirements of
17    this subsection (c) if they are sourced from a generating
18    unit whose costs were being recovered through rates
19    regulated by this State or any other state or states on or
20    after January 1, 2017. Each contract executed to purchase
21    renewable energy credits under this subsection (c) shall
22    provide for the contract's termination if the costs of the
23    generating unit supplying the renewable energy credits
24    subsequently begin to be recovered through rates regulated
25    by this State or any other state or states; and each
26    contract shall further provide that, in that event, the



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1    supplier of the credits must return 110% of all payments
2    received under the contract. Amounts returned under the
3    requirements of this subparagraph (J) shall be retained by
4    the utility and all of these amounts shall be used for the
5    procurement of additional renewable energy credits from
6    new wind or new photovoltaic resources as defined in this
7    subsection (c). The long-term plan shall provide that
8    these renewable energy credits shall be procured in the
9    next procurement event.
10        Notwithstanding the limitations of this subparagraph
11    (J), renewable energy credits sourced from generating
12    units that are constructed, purchased, owned, or leased by
13    an electric utility as part of an approved project,
14    program, or pilot under Section 1-56 of this Act shall be
15    eligible to be counted toward the renewable energy
16    requirements of this subsection (c), regardless of how the
17    costs of these units are recovered. As long as a
18    generating unit or an identifiable portion of a generating
19    unit has not had and does not have its costs recovered
20    through rates regulated by this State or any other state,
21    HVDC renewable energy credits associated with that
22    generating unit or identifiable portion thereof shall be
23    eligible to be counted toward the renewable energy
24    requirements of this subsection (c).
25        (K) The long-term renewable resources procurement plan
26    developed by the Agency in accordance with subparagraph



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1    (A) of this paragraph (1) shall include an Adjustable
2    Block program for the procurement of renewable energy
3    credits from new photovoltaic projects that are
4    distributed renewable energy generation devices or new
5    photovoltaic community renewable generation projects. The
6    Adjustable Block program shall be generally designed to
7    provide for the steady, predictable, and sustainable
8    growth of new solar photovoltaic development in Illinois.
9    To this end, the Adjustable Block program shall provide a
10    transparent annual schedule of prices and quantities to
11    enable the photovoltaic market to scale up and for
12    renewable energy credit prices to adjust at a predictable
13    rate over time. The prices set by the Adjustable Block
14    program can be reflected as a set value or as the product
15    of a formula.
16        The Adjustable Block program shall include for each
17    category of eligible projects for each delivery year: a
18    single block of nameplate capacity, a price for renewable
19    energy credits within that block, and the terms and
20    conditions for securing a spot on a waitlist once the
21    block is fully committed or reserved. Except as outlined
22    below, the waitlist of projects in a given year will carry
23    over to apply to the subsequent year when another block is
24    opened. Only projects energized on or after June 1, 2017
25    shall be eligible for the Adjustable Block program. For
26    each category for each delivery year the Agency shall



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1    determine the amount of generation capacity in each block,
2    and the purchase price for each block, provided that the
3    purchase price provided and the total amount of generation
4    in all blocks for all categories shall be sufficient to
5    meet the goals in this subsection (c). The Agency shall
6    strive to issue a single block sized to provide for
7    stability and market growth. The Agency shall establish
8    program eligibility requirements that ensure that projects
9    that enter the program are sufficiently mature to indicate
10    a demonstrable path to completion. The Agency may
11    periodically review its prior decisions establishing the
12    amount of generation capacity in each block, and the
13    purchase price for each block, and may propose, on an
14    expedited basis, changes to these previously set values,
15    including but not limited to redistributing these amounts
16    and the available funds as necessary and appropriate,
17    subject to Commission approval as part of the periodic
18    plan revision process described in Section 16-111.5 of the
19    Public Utilities Act. The Agency may define different
20    block sizes, purchase prices, or other distinct terms and
21    conditions for projects located in different utility
22    service territories if the Agency deems it necessary to
23    meet the goals in this subsection (c).
24        The Adjustable Block program shall include the
25    following categories in at least the following amounts:
26            (i) At least 20% from distributed renewable energy



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



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1                (2) projects shall have subscriptions of 25 kW
2            or less for at least 50% of the facility's
3            nameplate capacity and the Agency shall price the
4            renewable energy credits with that as a factor;
5                (3) projects shall not be colocated with one
6            or more other community renewable generation
7            projects, as defined in the Agency's first revised
8            long-term renewable resources procurement plan
9            approved by the Commission on February 18, 2020,
10            such that the aggregate nameplate capacity exceeds
11            5,000 kilowatts; and
12                (4) projects greater than 2 MW may not apply
13            until after the approval of the Agency's revised
14            Long-Term Renewable Resources Procurement Plan
15            after the effective date of this amendatory Act of
16            the 102nd General Assembly.
17            (iv) At least 15% from distributed renewable
18        generation devices or photovoltaic community renewable
19        generation projects installed at public schools. The
20        Agency may create subcategories within this category
21        to account for the differences between project size or
22        location. Projects located within environmental
23        justice communities or within Organizational Units
24        that fall within Tier 1 or Tier 2 shall be given
25        priority. Each of the Agency's periodic updates to its
26        long-term renewable resources procurement plan to



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



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



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



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



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



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



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1        comparable project types. The percentage or amount of
2        capital advanced prior to project energization shall
3        not operate to increase the overall contract value,
4        however contracts executed under this subparagraph may
5        feature renewable energy credit prices higher than
6        those offered to similar projects participating in
7        other categories. Capital advanced prior to
8        energization shall serve to reduce the ratable
9        payments made after energization under items (ii) and
10        (iii) of subparagraph (L) or payments made for each
11        renewable energy credit delivery under item (iv) of
12        subparagraph (L).
13            (vii) The remaining capacity shall be allocated by
14        the Agency in order to respond to market demand. The
15        Agency shall allocate any discretionary capacity prior
16        to the beginning of 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    projects in diverse locations and are not concentrated in
11    a few regional areas.
12        (L) Notwithstanding provisions for advancing capital
13    prior to project energization found in item (vi) of
14    subparagraph (K), the procurement of photovoltaic
15    renewable energy credits under items (i) through (vi) of
16    subparagraph (K) of this paragraph (1) shall otherwise be
17    subject to the following contract and payment terms:
18        (i) (Blank).
19            (ii) For those renewable energy credits that
20        qualify and are procured under item (i) of
21        subparagraph (K) of this paragraph (1), and any
22        similar category projects that are procured under item
23        (vi) of subparagraph (K) of this paragraph (1) that
24        qualify and are procured under item (vi), the contract
25        length shall be 15 years. The renewable energy credit
26        delivery contract value shall be paid in full, based



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



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1        electric utility shall receive and retire all
2        renewable energy credits generated by the project for
3        the first 15 years of operation. Renewable energy
4        credits generated by the project thereafter shall not
5        be transferred under the renewable energy credit
6        delivery contract with the counterparty electric
7        utility.
8            (iv) For those renewable energy credits that
9        qualify and are procured under items (iii) and (iv) of
10        subparagraph (K) of this paragraph (1), and any like
11        projects that qualify and are procured under item
12        (vi), the renewable energy credit delivery contract
13        length shall be 20 years and shall be paid over the
14        delivery term, not to exceed during each delivery year
15        the contract price multiplied by the estimated annual
16        renewable energy credit generation amount. If
17        generation of renewable energy credits during a
18        delivery year exceeds the estimated annual generation
19        amount, the excess renewable energy credits shall be
20        carried forward to future delivery years and shall not
21        expire during the delivery term. If generation of
22        renewable energy credits during a delivery year,
23        including carried forward excess renewable energy
24        credits, if any, is less than the estimated annual
25        generation amount, payments during such delivery year
26        will not exceed the quantity generated plus the



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1        quantity carried forward multiplied by the contract
2        price. The electric utility shall receive all
3        renewable energy credits generated by the project
4        during the first 20 years of operation and retire all
5        renewable energy credits paid for under this item (iv)
6        and return at the end of the delivery term all
7        renewable energy credits that were not paid for.
8        Renewable energy credits generated by the project
9        thereafter shall not be transferred under the
10        renewable energy credit delivery contract with the
11        counterparty electric utility. Notwithstanding the
12        preceding, for those projects participating under item
13        (iii) of subparagraph (K), the contract price for a
14        delivery year shall be based on subscription levels as
15        measured on the higher of the first business day of the
16        delivery year or the first business day 6 months after
17        the first business day of the delivery year.
18        Subscription of 90% of nameplate capacity or greater
19        shall be deemed to be fully subscribed for the
20        purposes of this item (iv). For projects receiving a
21        20-year delivery contract, REC prices shall be
22        adjusted downward for consistency with the incentive
23        levels previously determined to be necessary to
24        support projects under 15-year delivery contracts,
25        taking into consideration any additional new
26        requirements placed on the projects, including, but



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1        not limited to, labor standards.
2            (v) Each contract shall include provisions to
3        ensure the delivery of the estimated quantity of
4        renewable energy credits and ongoing collateral
5        requirements and other provisions deemed appropriate
6        by the Agency.
7            (vi) The utility shall be the counterparty to the
8        contracts executed under this subparagraph (L) that
9        are approved by the Commission under the process
10        described in Section 16-111.5 of the Public Utilities
11        Act. No contract shall be executed for an amount that
12        is less than one renewable energy credit per year.
13            (vii) If, at any time, approved applications for
14        the Adjustable Block program exceed funds collected by
15        the electric utility or would cause the Agency to
16        exceed the limitation described in subparagraph (E) of
17        this paragraph (1) on the amount of renewable energy
18        resources that may be procured, then the Agency may
19        consider future uncommitted funds to be reserved for
20        these contracts on a first-come, first-served basis.
21            (viii) Nothing in this Section shall require the
22        utility to advance any payment or pay any amounts that
23        exceed the actual amount of revenues anticipated to be
24        collected by the utility under paragraph (6) of this
25        subsection (c) and subsection (k) of Section 16-108 of
26        the Public Utilities Act inclusive of eligible funds



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1        collected in prior years and alternative compliance
2        payments for use by the utility, and contracts
3        executed under this Section shall expressly
4        incorporate this limitation.
5            (ix) Notwithstanding other requirements of this
6        subparagraph (L), no modification shall be required to
7        Adjustable Block program contracts if they were
8        already executed prior to the establishment, approval,
9        and implementation of new contract forms as a result
10        of this amendatory Act of the 102nd General Assembly.
11            (x) Contracts may be assignable, but only to
12        entities first deemed by the Agency to have met
13        program terms and requirements applicable to direct
14        program participation. In developing contracts for the
15        delivery of renewable energy credits, the Agency shall
16        be permitted to establish fees applicable to each
17        contract assignment.
18        (M) The Agency shall be authorized to retain one or
19    more experts or expert consulting firms to develop,
20    administer, implement, operate, and evaluate the
21    Adjustable Block program described in subparagraph (K) of
22    this paragraph (1), and the Agency shall retain the
23    consultant or consultants in the same manner, to the
24    extent practicable, as the Agency retains others to
25    administer provisions of this Act, including, but not
26    limited to, the procurement administrator. The selection



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1    of experts and expert consulting firms and the procurement
2    process described in this subparagraph (M) are exempt from
3    the requirements of Section 20-10 of the Illinois
4    Procurement Code, under Section 20-10 of that Code. The
5    Agency shall strive to minimize administrative expenses in
6    the implementation of the Adjustable Block program.
7        The Program Administrator may charge application fees
8    to participating firms to cover the cost of program
9    administration. Any application fee amounts shall
10    initially be determined through the long-term renewable
11    resources procurement plan, and modifications to any
12    application fee that deviate more than 25% from the
13    Commission's approved value must be approved by the
14    Commission as a long-term plan revision under Section
15    16-111.5 of the Public Utilities Act. The Agency shall
16    consider stakeholder feedback when making adjustments to
17    application fees and shall notify stakeholders in advance
18    of any planned changes.
19        In addition to covering the costs of program
20    administration, the Agency, in conjunction with its
21    Program Administrator, may also use the proceeds of such
22    fees charged to participating firms to support public
23    education and ongoing regional and national coordination
24    with nonprofit organizations, public bodies, and others
25    engaged in the implementation of renewable energy
26    incentive programs or similar initiatives. This work may



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1    include developing papers and reports, hosting regional
2    and national conferences, and other work deemed necessary
3    by the Agency to position the State of Illinois as a
4    national leader in renewable energy incentive program
5    development and administration.
6        The Agency and its consultant or consultants shall
7    monitor block activity, share program activity with
8    stakeholders and conduct quarterly meetings to discuss
9    program activity and market conditions. If necessary, the
10    Agency may make prospective administrative adjustments to
11    the Adjustable Block program design, such as making
12    adjustments to purchase prices as necessary to achieve the
13    goals of this subsection (c). Program modifications to any
14    block price that do not deviate from the Commission's
15    approved value by more than 10% shall take effect
16    immediately and are not subject to Commission review and
17    approval. Program modifications to any block price that
18    deviate more than 10% from the Commission's approved value
19    must be approved by the Commission as a long-term plan
20    amendment under Section 16-111.5 of the Public Utilities
21    Act. The Agency shall consider stakeholder feedback when
22    making adjustments to the Adjustable Block design and
23    shall notify stakeholders in advance of any planned
24    changes.
25        The Agency and its program administrators for both the
26    Adjustable Block program and the Illinois Solar for All



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1    Program, consistent with the requirements of this
2    subsection (c) and subsection (b) of Section 1-56 of this
3    Act, shall propose the Adjustable Block program terms,
4    conditions, and requirements, including the prices to be
5    paid for renewable energy credits, where applicable, and
6    requirements applicable to participating entities and
7    project applications, through the development, review, and
8    approval of the Agency's long-term renewable resources
9    procurement plan described in this subsection (c) and
10    paragraph (5) of subsection (b) of Section 16-111.5 of the
11    Public Utilities Act. Terms, conditions, and requirements
12    for program participation shall include the following:
13            (i) The Agency shall establish a registration
14        process for entities seeking to qualify for
15        program-administered incentive funding and establish
16        baseline qualifications for vendor approval. The
17        Agency must maintain a list of approved entities on
18        each program's website, and may revoke a vendor's
19        ability to receive program-administered incentive
20        funding status upon a determination that the vendor
21        failed to comply with contract terms, the law, or
22        other program requirements.
23            (ii) The Agency shall establish program
24        requirements and minimum contract terms to ensure
25        projects are properly installed and produce their
26        expected amounts of energy. Program requirements may



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1        include on-site inspections and photo documentation of
2        projects under construction. The Agency may require
3        repairs, alterations, or additions to remedy any
4        material deficiencies discovered. Vendors who have a
5        disproportionately high number of deficient systems
6        may lose their eligibility to continue to receive
7        State-administered incentive funding through Agency
8        programs and procurements.
9            (iii) To discourage deceptive marketing or other
10        bad faith business practices, the Agency may require
11        direct program participants, including agents
12        operating on their behalf, to provide standardized
13        disclosures to a customer prior to that customer's
14        execution of a contract for the development of a
15        distributed generation system or a subscription to a
16        community solar project.
17            (iv) The Agency shall establish one or multiple
18        Consumer Complaints Centers to accept complaints
19        regarding businesses that participate in, or otherwise
20        benefit from, State-administered incentive funding
21        through Agency-administered programs. The Agency shall
22        maintain a public database of complaints with any
23        confidential or particularly sensitive information
24        redacted from public entries.
25            (v) Through a filing in the proceeding for the
26        approval of its long-term renewable energy resources



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1        procurement plan, the Agency shall provide an annual
2        written report to the Illinois Commerce Commission
3        documenting the frequency and nature of complaints and
4        any enforcement actions taken in response to those
5        complaints.
6            (vi) The Agency shall schedule regular meetings
7        with representatives of the Office of the Attorney
8        General, the Illinois Commerce Commission, consumer
9        protection groups, and other interested stakeholders
10        to share relevant information about consumer
11        protection, project compliance, and complaints
12        received.
13            (vii) To the extent that complaints received
14        implicate the jurisdiction of the Office of the
15        Attorney General, the Illinois Commerce Commission, or
16        local, State, or federal law enforcement, the Agency
17        shall also refer complaints to those entities as
18        appropriate.
19        (N) The Agency shall establish the terms, conditions,
20    and program requirements for photovoltaic community
21    renewable generation projects with a goal to expand access
22    to a broader group of energy consumers, to ensure robust
23    participation opportunities for residential and small
24    commercial customers and those who cannot install
25    renewable energy on their own properties. Subject to
26    reasonable limitations, any plan approved by the



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1    Commission shall allow subscriptions to community
2    renewable generation projects to be portable and
3    transferable. For purposes of this subparagraph (N),
4    "portable" means that subscriptions may be retained by the
5    subscriber even if the subscriber relocates or changes its
6    address within the same utility service territory; and
7    "transferable" means that a subscriber may assign or sell
8    subscriptions to another person within the same utility
9    service territory.
10        Through the development of its long-term renewable
11    resources procurement plan, the Agency may consider
12    whether community renewable generation projects utilizing
13    technologies other than photovoltaics should be supported
14    through State-administered incentive funding, and may
15    issue requests for information to gauge market demand.
16        Electric utilities shall provide a monetary credit to
17    a subscriber's subsequent bill for service for the
18    proportional output of a community renewable generation
19    project attributable to that subscriber as specified in
20    Section 16-107.5 of the Public Utilities Act.
21        The Agency shall purchase renewable energy credits
22    from subscribed shares of photovoltaic community renewable
23    generation projects through the Adjustable Block program
24    described in subparagraph (K) of this paragraph (1) or
25    through the Illinois Solar for All Program described in
26    Section 1-56 of this Act. The electric utility shall



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1    purchase any unsubscribed energy from community renewable
2    generation projects that are Qualifying Facilities ("QF")
3    under the electric utility's tariff for purchasing the
4    output from QFs under Public Utilities Regulatory Policies
5    Act of 1978.
6        The owners of and any subscribers to a community
7    renewable generation project shall not be considered
8    public utilities or alternative retail electricity
9    suppliers under the Public Utilities Act solely as a
10    result of their interest in or subscription to a community
11    renewable generation project and shall not be required to
12    become an alternative retail electric supplier by
13    participating in a community renewable generation project
14    with a public utility.
15        (O) For the delivery year beginning June 1, 2018, the
16    long-term renewable resources procurement plan required by
17    this subsection (c) shall provide for the Agency to
18    procure contracts to continue offering the Illinois Solar
19    for All Program described in subsection (b) of Section
20    1-56 of this Act, and the contracts approved by the
21    Commission shall be executed by the utilities that are
22    subject to this subsection (c). The long-term renewable
23    resources procurement plan shall allocate up to
24    $50,000,000 per delivery year to fund the programs, and
25    the plan shall determine the amount of funding to be
26    apportioned to the programs identified in subsection (b)



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1    of Section 1-56 of this Act; provided that for the
2    delivery years beginning June 1, 2021, June 1, 2022, and
3    June 1, 2023, the long-term renewable resources
4    procurement plan may average the annual budgets over a
5    3-year period to account for program ramp-up. For the
6    delivery years beginning June 1, 2021, June 1, 2024, June
7    1, 2027, and June 1, 2030 and additional $10,000,000 shall
8    be provided to the Department of Commerce and Economic
9    Opportunity to implement the workforce development
10    programs and reporting as outlined in Section 16-108.12 of
11    the Public Utilities Act. In making the determinations
12    required under this subparagraph (O), the Commission shall
13    consider the experience and performance under the programs
14    and any evaluation reports. The Commission shall also
15    provide for an independent evaluation of those programs on
16    a periodic basis that are funded under this subparagraph
17    (O).
18        (P) All programs and procurements under this
19    subsection (c) shall be designed to encourage
20    participating projects to use a diverse and equitable
21    workforce and a diverse set of contractors, including
22    minority-owned businesses, disadvantaged businesses,
23    trade unions, graduates of any workforce training programs
24    administered under this Act, and small businesses.
25        The Agency shall develop a method to optimize
26    procurement of renewable energy credits from proposed



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



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



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



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



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



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



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



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



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



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1        average price paid per renewable energy credit divided
2        by 1,000, for all utility-scale renewable energy
3        credits procured by the Agency pursuant to this
4        Section after June 1, 2017, including indexed
5        renewable energy credits, the estimated portion of the
6        cost authorized by subparagraph (E) of paragraph (1)
7        of this subsection (c) that supported the annual
8        procurement of utility-scale renewable energy credits
9        in the prior delivery year using a methodology
10        described in the long-term renewable resources
11        procurement plan, expressed on a per kilowatthour
12        basis, and does not include (i) costs associated with
13        any contracts entered into before the delivery year in
14        which the customer files the initial compliance report
15        to be eligible for participation in the self-direct
16        program, and (ii) costs associated with procuring
17        renewable energy credits through existing and future
18        contracts through the Adjustable Block Program,
19        subsection (c-5) of this Section 1-75, and the Solar
20        for All Program. The Agency shall assist the
21        Commission in determining the current and future
22        costs. The Agency must determine the self-direct
23        credit amount for new and existing eligible
24        self-direct customers and submit this to the
25        Commission in an annual compliance filing. The
26        Commission must approve the self-direct credit amount



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1        by June 1, 2023 and June 1 of each delivery year
2        thereafter. The approved self-direct credit amount
3        shall be multiplied by each renewable energy credit
4        procured by participating self-direct customers to
5        form the customer's utility bill credit amount.
6            (5) Customers described in this subparagraph (R)
7        shall apply, on a form developed by the Agency, to the
8        Agency to be designated as a self-direct eligible
9        customer. Once the Agency determines that a
10        self-direct customer is eligible for participation in
11        the program, the self-direct customer will remain
12        eligible until the end of the term of the contract.
13        Thereafter, application may be made not less than 12
14        months before the filing date of the long-term
15        renewable resources procurement plan described in this
16        Act. At a minimum, such application shall contain the
17        following:
18                (i) the customer's certification that, at the
19            time of the customer's application, the customer
20            qualifies to be a self-direct eligible customer,
21            including documents demonstrating that
22            qualification;
23                (ii) the customer's certification that the
24            customer has entered into or will enter into by
25            the beginning of the applicable procurement year,
26            one or more bilateral contracts for new wind



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1            projects or new photovoltaic projects, including
2            supporting documentation;
3                (iii) certification that the contract or
4            contracts for new renewable energy resources are
5            long-term contracts with term lengths of at least
6            10 years, including supporting documentation;
7                (iv) certification of the quantities of
8            renewable energy credits that the customer will
9            purchase each year under such contract or
10            contracts, including supporting documentation;
11                (v) proof that the contract is sufficient to
12            produce renewable energy credits to be equivalent
13            in volume to at least 40% of the large energy
14            customer's usage from the previous delivery year,
15            measured to the nearest megawatt-hour; and
16                (vi) certification that the customer intends
17            to maintain the contract for the duration of the
18            length of the contract.
19            (6) If a customer receives the self-direct credit
20        but fails to properly procure and retire renewable
21        energy credits as required under this subparagraph
22        (R), the Commission, on petition from the Agency and
23        after notice and hearing, may direct such customer's
24        utility to recover the cost of the wrongfully received
25        self-direct credits plus interest through an adder to
26        charges assessed pursuant to Section 16-108 of the



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1        Public Utilities Act. Self-direct customers who
2        knowingly fail to properly procure and retire
3        renewable energy credits and do not notify the Agency
4        are ineligible for continued participation in the
5        self-direct renewable portfolio standard compliance
6        program.
7        (2) (Blank).
8        (3) (Blank).
9        (4) The electric utility shall retire all renewable
10    energy credits used to comply with the standard.
11        (5) Beginning with the 2010 delivery year and ending
12    June 1, 2017, an electric utility subject to this
13    subsection (c) shall apply the lesser of the maximum
14    alternative compliance payment rate or the most recent
15    estimated alternative compliance payment rate for its
16    service territory for the corresponding compliance period,
17    established pursuant to subsection (d) of Section 16-115D
18    of the Public Utilities Act to its retail customers that
19    take service pursuant to the electric utility's hourly
20    pricing tariff or tariffs. The electric utility shall
21    retain all amounts collected as a result of the
22    application of the alternative compliance payment rate or
23    rates to such customers, and, beginning in 2011, the
24    utility shall include in the information provided under
25    item (1) of subsection (d) of Section 16-111.5 of the
26    Public Utilities Act the amounts collected under the



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1    alternative compliance payment rate or rates for the prior
2    year ending May 31. Notwithstanding any limitation on the
3    procurement of renewable energy resources imposed by item
4    (2) of this subsection (c), the Agency shall increase its
5    spending on the purchase of renewable energy resources to
6    be procured by the electric utility for the next plan year
7    by an amount equal to the amounts collected by the utility
8    under the alternative compliance payment rate or rates in
9    the prior year ending May 31.
10        (6) The electric utility shall be entitled to recover
11    all of its costs associated with the procurement of
12    renewable energy credits under plans approved under this
13    Section and Section 16-111.5 of the Public Utilities Act.
14    These costs shall include associated reasonable expenses
15    for implementing the procurement programs, including, but
16    not limited to, the costs of administering and evaluating
17    the Adjustable Block program, through an automatic
18    adjustment clause tariff in accordance with subsection (k)
19    of Section 16-108 of the Public Utilities Act.
20        (7) Renewable energy credits procured from new
21    photovoltaic projects or new distributed renewable energy
22    generation devices under this Section after June 1, 2017
23    (the effective date of Public Act 99-906) must be procured
24    from devices installed by a qualified person in compliance
25    with the requirements of Section 16-128A of the Public
26    Utilities Act and any rules or regulations adopted



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1    thereunder.
2        In meeting the renewable energy requirements of this
3    subsection (c), to the extent feasible and consistent with
4    State and federal law, the renewable energy credit
5    procurements, Adjustable Block solar program, and
6    community renewable generation program shall provide
7    employment opportunities for all segments of the
8    population and workforce, including minority-owned and
9    female-owned business enterprises, and shall not,
10    consistent with State and federal law, discriminate based
11    on race or socioeconomic status.
12    (c-5) Procurement of renewable energy credits from new
13renewable energy facilities installed at or adjacent to the
14sites of electric generating facilities that burn or burned
15coal as their primary fuel source.
16        (1) In addition to the procurement of renewable energy
17    credits pursuant to long-term renewable resources
18    procurement plans in accordance with subsection (c) of
19    this Section and Section 16-111.5 of the Public Utilities
20    Act, the Agency shall conduct procurement events in
21    accordance with this subsection (c-5) for the procurement
22    by electric utilities that served more than 300,000 retail
23    customers in this State as of January 1, 2019 of renewable
24    energy credits from new renewable energy facilities to be
25    installed at or adjacent to the sites of electric
26    generating facilities that, as of January 1, 2016, burned



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1    coal as their primary fuel source and meet the other
2    criteria specified in this subsection (c-5). For purposes
3    of this subsection (c-5), "new renewable energy facility"
4    means a new utility-scale solar project as defined in this
5    Section 1-75. The renewable energy credits procured
6    pursuant to this subsection (c-5) may be included or
7    counted for purposes of compliance with the amounts of
8    renewable energy credits required to be procured pursuant
9    to subsection (c) of this Section to the extent that there
10    are otherwise shortfalls in compliance with such
11    requirements. The procurement of renewable energy credits
12    by electric utilities pursuant to this subsection (c-5)
13    shall be funded solely by revenues collected from the Coal
14    to Solar and Energy Storage Initiative Charge provided for
15    in this subsection (c-5) and subsection (i-5) of Section
16    16-108 of the Public Utilities Act, shall not be funded by
17    revenues collected through any of the other funding
18    mechanisms provided for in subsection (c) of this Section,
19    and shall not be subject to the limitation imposed by
20    subsection (c) on charges to retail customers for costs to
21    procure renewable energy resources pursuant to subsection
22    (c), and shall not be subject to any other requirements or
23    limitations of subsection (c).
24        (2) The Agency shall conduct 2 procurement events to
25    select owners of electric generating facilities meeting
26    the eligibility criteria specified in this subsection



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1    (c-5) to enter into long-term contracts to sell renewable
2    energy credits to electric utilities serving more than
3    300,000 retail customers in this State as of January 1,
4    2019. The first procurement event shall be conducted no
5    later than March 31, 2022, unless the Agency elects to
6    delay it, until no later than May 1, 2022, due to its
7    overall volume of work, and shall be to select owners of
8    electric generating facilities located in this State and
9    south of federal Interstate Highway 80 that meet the
10    eligibility criteria specified in this subsection (c-5).
11    The second procurement event shall be conducted no sooner
12    than September 30, 2022 and no later than October 31, 2022
13    and shall be to select owners of electric generating
14    facilities located anywhere in this State that meet the
15    eligibility criteria specified in this subsection (c-5).
16    The Agency shall establish and announce a time period,
17    which shall begin no later than 30 days prior to the
18    scheduled date for the procurement event, during which
19    applicants may submit applications to be selected as
20    suppliers of renewable energy credits pursuant to this
21    subsection (c-5). The eligibility criteria for selection
22    as a supplier of renewable energy credits pursuant to this
23    subsection (c-5) shall be as follows:
24            (A) The applicant owns an electric generating
25        facility located in this State that: (i) as of January
26        1, 2016, burned coal as its primary fuel to generate



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1        electricity; and (ii) has, or had prior to retirement,
2        an electric generating capacity of at least 150
3        megawatts. The electric generating facility can be
4        either: (i) retired as of the date of the procurement
5        event; or (ii) still operating as of the date of the
6        procurement event.
7            (B) The applicant is not (i) an electric
8        cooperative as defined in Section 3-119 of the Public
9        Utilities Act, or (ii) an entity described in
10        subsection (b)(1) of Section 3-105 of the Public
11        Utilities Act, or an association or consortium of or
12        an entity owned by entities described in (i) or (ii);
13        and the coal-fueled electric generating facility was
14        at one time owned, in whole or in part, by a public
15        utility as defined in Section 3-105 of the Public
16        Utilities Act.
17            (C) If participating in the first procurement
18        event, the applicant proposes and commits to construct
19        and operate, at the site, and if necessary for
20        sufficient space on property adjacent to the existing
21        property, at which the electric generating facility
22        identified in paragraph (A) is located: (i) a new
23        renewable energy facility of at least 20 megawatts but
24        no more than 100 megawatts of electric generating
25        capacity, and (ii) an energy storage facility having a
26        storage capacity equal to at least 2 megawatts and at



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1        most 10 megawatts. If participating in the second
2        procurement event, the applicant proposes and commits
3        to construct and operate, at the site, and if
4        necessary for sufficient space on property adjacent to
5        the existing property, at which the electric
6        generating facility identified in paragraph (A) is
7        located: (i) a new renewable energy facility of at
8        least 5 megawatts but no more than 20 megawatts of
9        electric generating capacity, and (ii) an energy
10        storage facility having a storage capacity equal to at
11        least 0.5 megawatts and at most one megawatt.
12            (D) The applicant agrees that the new renewable
13        energy facility and the energy storage facility will
14        be constructed or installed by a qualified entity or
15        entities in compliance with the requirements of
16        subsection (g) of Section 16-128A of the Public
17        Utilities Act and any rules adopted thereunder.
18            (E) The applicant agrees that personnel operating
19        the new renewable energy facility and the energy
20        storage facility will have the requisite skills,
21        knowledge, training, experience, and competence, which
22        may be demonstrated by completion or current
23        participation and ultimate completion by employees of
24        an accredited or otherwise recognized apprenticeship
25        program for the employee's particular craft, trade, or
26        skill, including through training and education



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1        courses and opportunities offered by the owner to
2        employees of the coal-fueled electric generating
3        facility or by previous employment experience
4        performing the employee's particular work skill or
5        function.
6            (F) The applicant commits that not less than the
7        prevailing wage, as determined pursuant to the
8        Prevailing Wage Act, will be paid to the applicant's
9        employees engaged in construction activities
10        associated with the new renewable energy facility and
11        the new energy storage facility and to the employees
12        of applicant's contractors engaged in construction
13        activities associated with the new renewable energy
14        facility and the new energy storage facility, and
15        that, on or before the commercial operation date of
16        the new renewable energy facility, the applicant shall
17        file a report with the Agency certifying that the
18        requirements of this subparagraph (F) have been met.
19            (G) The applicant commits that if selected, it
20        will negotiate a project labor agreement for the
21        construction of the new renewable energy facility and
22        associated energy storage facility that includes
23        provisions requiring the parties to the agreement to
24        work together to establish diversity threshold
25        requirements and to ensure best efforts to meet
26        diversity targets, improve diversity at the applicable



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1        job site, create diverse apprenticeship opportunities,
2        and create opportunities to employ former coal-fired
3        power plant workers.
4            (H) The applicant commits to enter into a contract
5        or contracts for the applicable duration to provide
6        specified numbers of renewable energy credits each
7        year from the new renewable energy facility to
8        electric utilities that served more than 300,000
9        retail customers in this State as of January 1, 2019,
10        at a price of $30 per renewable energy credit. The
11        price per renewable energy credit shall be fixed at
12        $30 for the applicable duration and the renewable
13        energy credits shall not be indexed renewable energy
14        credits as provided for in item (v) of subparagraph
15        (G) of paragraph (1) of subsection (c) of Section 1-75
16        of this Act. The applicable duration of each contract
17        shall be 20 years, unless the applicant is physically
18        interconnected to the PJM Interconnection, LLC
19        transmission grid and had a generating capacity of at
20        least 1,200 megawatts as of January 1, 2021, in which
21        case the applicable duration of the contract shall be
22        15 years.
23            (I) The applicant's application is certified by an
24        officer of the applicant and by an officer of the
25        applicant's ultimate parent company, if any.
26        (3) An applicant may submit applications to contract



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1    to supply renewable energy credits from more than one new
2    renewable energy facility to be constructed at or adjacent
3    to one or more qualifying electric generating facilities
4    owned by the applicant. The Agency may select new
5    renewable energy facilities to be located at or adjacent
6    to the sites of more than one qualifying electric
7    generation facility owned by an applicant to contract with
8    electric utilities to supply renewable energy credits from
9    such facilities.
10        (4) The Agency shall assess fees to each applicant to
11    recover the Agency's costs incurred in receiving and
12    evaluating applications, conducting the procurement event,
13    developing contracts for sale, delivery and purchase of
14    renewable energy credits, and monitoring the
15    administration of such contracts, as provided for in this
16    subsection (c-5), including fees paid to a procurement
17    administrator retained by the Agency for one or more of
18    these purposes.
19        (5) The Agency shall select the applicants and the new
20    renewable energy facilities to contract with electric
21    utilities to supply renewable energy credits in accordance
22    with this subsection (c-5). In the first procurement
23    event, the Agency shall select applicants and new
24    renewable energy facilities to supply renewable energy
25    credits, at a price of $30 per renewable energy credit,
26    aggregating to no less than 400,000 renewable energy



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1    credits per year for the applicable duration, assuming
2    sufficient qualifying applications to supply, in the
3    aggregate, at least that amount of renewable energy
4    credits per year; and not more than 580,000 renewable
5    energy credits per year for the applicable duration. In
6    the second procurement event, the Agency shall select
7    applicants and new renewable energy facilities to supply
8    renewable energy credits, at a price of $30 per renewable
9    energy credit, aggregating to no more than 625,000
10    renewable energy credits per year less the amount of
11    renewable energy credits each year contracted for as a
12    result of the first procurement event, for the applicable
13    durations. The number of renewable energy credits to be
14    procured as specified in this paragraph (5) shall not be
15    reduced based on renewable energy credits procured in the
16    self-direct renewable energy credit compliance program
17    established pursuant to subparagraph (R) of paragraph (1)
18    of subsection (c) of Section 1-75.
19        (6) The obligation to purchase renewable energy
20    credits from the applicants and their new renewable energy
21    facilities selected by the Agency shall be allocated to
22    the electric utilities based on their respective
23    percentages of kilowatthours delivered to delivery
24    services customers to the aggregate kilowatthour
25    deliveries by the electric utilities to delivery services
26    customers for the year ended December 31, 2021. In order



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1    to achieve these allocation percentages between or among
2    the electric utilities, the Agency shall require each
3    applicant that is selected in the procurement event to
4    enter into a contract with each electric utility for the
5    sale and purchase of renewable energy credits from each
6    new renewable energy facility to be constructed and
7    operated by the applicant, with the sale and purchase
8    obligations under the contracts to aggregate to the total
9    number of renewable energy credits per year to be supplied
10    by the applicant from the new renewable energy facility.
11        (7) The Agency shall submit its proposed selection of
12    applicants, new renewable energy facilities to be
13    constructed, and renewable energy credit amounts for each
14    procurement event to the Commission for approval. The
15    Commission shall, within 2 business days after receipt of
16    the Agency's proposed selections, approve the proposed
17    selections if it determines that the applicants and the
18    new renewable energy facilities to be constructed meet the
19    selection criteria set forth in this subsection (c-5) and
20    that the Agency seeks approval for contracts of applicable
21    durations aggregating to no more than the maximum amount
22    of renewable energy credits per year authorized by this
23    subsection (c-5) for the procurement event, at a price of
24    $30 per renewable energy credit.
25        (8) The Agency, in conjunction with its procurement
26    administrator if one is retained, the electric utilities,



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1    and potential applicants for contracts to produce and
2    supply renewable energy credits pursuant to this
3    subsection (c-5), shall develop a standard form contract
4    for the sale, delivery and purchase of renewable energy
5    credits pursuant to this subsection (c-5). Each contract
6    resulting from the first procurement event shall allow for
7    a commercial operation date for the new renewable energy
8    facility of either June 1, 2023 or June 1, 2024, with such
9    dates subject to adjustment as provided in this paragraph.
10    Each contract resulting from the second procurement event
11    shall provide for a commercial operation date on June 1
12    next occurring up to 48 months after execution of the
13    contract. Each contract shall provide that the owner shall
14    receive payments for renewable energy credits for the
15    applicable durations beginning with the commercial
16    operation date of the new renewable energy facility. The
17    form contract shall provide for adjustments to the
18    commercial operation and payment start dates as needed due
19    to any delays in completing the procurement and
20    contracting processes, in finalizing interconnection
21    agreements and installing interconnection facilities, and
22    in obtaining other necessary governmental permits and
23    approvals. The form contract shall be, to the maximum
24    extent possible, consistent with standard electric
25    industry contracts for sale, delivery, and purchase of
26    renewable energy credits while taking into account the



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1    specific requirements of this subsection (c-5). The form
2    contract shall provide for over-delivery and
3    under-delivery of renewable energy credits within
4    reasonable ranges during each 12-month period and penalty,
5    default, and enforcement provisions for failure of the
6    selling party to deliver renewable energy credits as
7    specified in the contract and to comply with the
8    requirements of this subsection (c-5). The standard form
9    contract shall specify that all renewable energy credits
10    delivered to the electric utility pursuant to the contract
11    shall be retired. The Agency shall make the proposed
12    contracts available for a reasonable period for comment by
13    potential applicants, and shall publish the final form
14    contract at least 30 days before the date of the first
15    procurement event.
16        (9) Coal to Solar and Energy Storage Initiative
17    Charge.
18            (A) By no later than July 1, 2022, each electric
19        utility that served more than 300,000 retail customers
20        in this State as of January 1, 2019 shall file a tariff
21        with the Commission for the billing and collection of
22        a Coal to Solar and Energy Storage Initiative Charge
23        in accordance with subsection (i-5) of Section 16-108
24        of the Public Utilities Act, with such tariff to be
25        effective, following review and approval or
26        modification by the Commission, beginning January 1,



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1        2023. The tariff shall provide for the calculation and
2        setting of the electric utility's Coal to Solar and
3        Energy Storage Initiative Charge to collect revenues
4        estimated to be sufficient, in the aggregate, (i) to
5        enable the electric utility to pay for the renewable
6        energy credits it has contracted to purchase in the
7        delivery year beginning June 1, 2023 and each delivery
8        year thereafter from new renewable energy facilities
9        located at the sites of qualifying electric generating
10        facilities, and (ii) to fund the grant payments to be
11        made in each delivery year by the Department of
12        Commerce and Economic Opportunity, or any successor
13        department or agency, which shall be referred to in
14        this subsection (c-5) as the Department, pursuant to
15        paragraph (10) of this subsection (c-5). The electric
16        utility's tariff shall provide for the billing and
17        collection of the Coal to Solar and Energy Storage
18        Initiative Charge on each kilowatthour of electricity
19        delivered to its delivery services customers within
20        its service territory and shall provide for an annual
21        reconciliation of revenues collected with actual
22        costs, in accordance with subsection (i-5) of Section
23        16-108 of the Public Utilities Act.
24            (B) Each electric utility shall remit on a monthly
25        basis to the State Treasurer, for deposit in the Coal
26        to Solar and Energy Storage Initiative Fund provided



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1        for in this subsection (c-5), the electric utility's
2        collections of the Coal to Solar and Energy Storage
3        Initiative Charge in the amount estimated to be needed
4        by the Department for grant payments pursuant to grant
5        contracts entered into by the Department pursuant to
6        paragraph (10) of this subsection (c-5).
7        (10) Coal to Solar and Energy Storage Initiative Fund.
8            (A) The Coal to Solar and Energy Storage
9        Initiative Fund is established as a special fund in
10        the State treasury. The Coal to Solar and Energy
11        Storage Initiative Fund is authorized to receive, by
12        statutory deposit, that portion specified in item (B)
13        of paragraph (9) of this subsection (c-5) of moneys
14        collected by electric utilities through imposition of
15        the Coal to Solar and Energy Storage Initiative Charge
16        required by this subsection (c-5). The Coal to Solar
17        and Energy Storage Initiative Fund shall be
18        administered by the Department to provide grants to
19        support the installation and operation of energy
20        storage facilities at the sites of qualifying electric
21        generating facilities meeting the criteria specified
22        in this paragraph (10).
23            (B) The Coal to Solar and Energy Storage
24        Initiative Fund shall not be subject to sweeps,
25        administrative charges, or chargebacks, including, but
26        not limited to, those authorized under Section 8h of



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1        the State Finance Act, that would in any way result in
2        the transfer of those funds from the Coal to Solar and
3        Energy Storage Initiative Fund to any other fund of
4        this State or in having any such funds utilized for any
5        purpose other than the express purposes set forth in
6        this paragraph (10).
7            (C) The Department shall utilize up to
8        $280,500,000 in the Coal to Solar and Energy Storage
9        Initiative Fund for grants, assuming sufficient
10        qualifying applicants, to support installation of
11        energy storage facilities at the sites of up to 3
12        qualifying electric generating facilities located in
13        the Midcontinent Independent System Operator, Inc.,
14        region in Illinois and the sites of up to 2 qualifying
15        electric generating facilities located in the PJM
16        Interconnection, LLC region in Illinois that meet the
17        criteria set forth in this subparagraph (C). The
18        criteria for receipt of a grant pursuant to this
19        subparagraph (C) are as follows:
20                (1) the electric generating facility at the
21            site has, or had prior to retirement, an electric
22            generating capacity of at least 150 megawatts;
23                (2) the electric generating facility burns (or
24            burned prior to retirement) coal as its primary
25            source of fuel;
26                (3) if the electric generating facility is



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1            retired, it was retired subsequent to January 1,
2            2016;
3                (4) the owner of the electric generating
4            facility has not been selected by the Agency
5            pursuant to this subsection (c-5) of this Section
6            to enter into a contract to sell renewable energy
7            credits to one or more electric utilities from a
8            new renewable energy facility located or to be
9            located at or adjacent to the site at which the
10            electric generating facility is located;
11                (5) the electric generating facility located
12            at the site was at one time owned, in whole or in
13            part, by a public utility as defined in Section
14            3-105 of the Public Utilities Act;
15                (6) the electric generating facility at the
16            site is not owned by (i) an electric cooperative
17            as defined in Section 3-119 of the Public
18            Utilities Act, or (ii) an entity described in
19            subsection (b)(1) of Section 3-105 of the Public
20            Utilities Act, or an association or consortium of
21            or an entity owned by entities described in items
22            (i) or (ii);
23                (7) the proposed energy storage facility at
24            the site will have energy storage capacity of at
25            least 37 megawatts;
26                (8) the owner commits to place the energy



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1            storage facility into commercial operation on
2            either June 1, 2023, June 1, 2024, or June 1, 2025,
3            with such date subject to adjustment as needed due
4            to any delays in completing the grant contracting
5            process, in finalizing interconnection agreements
6            and in installing interconnection facilities, and
7            in obtaining necessary governmental permits and
8            approvals;
9                (9) the owner agrees that the new energy
10            storage facility will be constructed or installed
11            by a qualified entity or entities consistent with
12            the requirements of subsection (g) of Section
13            16-128A of the Public Utilities Act and any rules
14            adopted under that Section;
15                (10) the owner agrees that personnel operating
16            the energy storage facility will have the
17            requisite skills, knowledge, training, experience,
18            and competence, which may be demonstrated by
19            completion or current participation and ultimate
20            completion by employees of an accredited or
21            otherwise recognized apprenticeship program for
22            the employee's particular craft, trade, or skill,
23            including through training and education courses
24            and opportunities offered by the owner to
25            employees of the coal-fueled electric generating
26            facility or by previous employment experience



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1            performing the employee's particular work skill or
2            function;
3                (11) the owner commits that not less than the
4            prevailing wage, as determined pursuant to the
5            Prevailing Wage Act, will be paid to the owner's
6            employees engaged in construction activities
7            associated with the new energy storage facility
8            and to the employees of the owner's contractors
9            engaged in construction activities associated with
10            the new energy storage facility, and that, on or
11            before the commercial operation date of the new
12            energy storage facility, the owner shall file a
13            report with the Department certifying that the
14            requirements of this subparagraph (11) have been
15            met; and
16                (12) the owner commits that if selected to
17            receive a grant, it will negotiate a project labor
18            agreement for the construction of the new energy
19            storage facility that includes provisions
20            requiring the parties to the agreement to work
21            together to establish diversity threshold
22            requirements and to ensure best efforts to meet
23            diversity targets, improve diversity at the
24            applicable job site, create diverse apprenticeship
25            opportunities, and create opportunities to employ
26            former coal-fired power plant workers.



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1            The Department shall accept applications for this
2        grant program until March 31, 2022 and shall announce
3        the award of grants no later than June 1, 2022. The
4        Department shall make the grant payments to a
5        recipient in equal annual amounts for 10 years
6        following the date the energy storage facility is
7        placed into commercial operation. The annual grant
8        payments to a qualifying energy storage facility shall
9        be $110,000 per megawatt of energy storage capacity,
10        with total annual grant payments pursuant to this
11        subparagraph (C) for qualifying energy storage
12        facilities not to exceed $28,050,000 in any year.
13            (D) Grants of funding for energy storage
14        facilities pursuant to subparagraph (C) of this
15        paragraph (10), from the Coal to Solar and Energy
16        Storage Initiative Fund, shall be memorialized in
17        grant contracts between the Department and the
18        recipient. The grant contracts shall specify the date
19        or dates in each year on which the annual grant
20        payments shall be paid.
21            (E) All disbursements from the Coal to Solar and
22        Energy Storage Initiative Fund shall be made only upon
23        warrants of the Comptroller drawn upon the Treasurer
24        as custodian of the Fund upon vouchers signed by the
25        Director of the Department or by the person or persons
26        designated by the Director of the Department for that



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1        purpose. The Comptroller is authorized to draw the
2        warrants upon vouchers so signed. The Treasurer shall
3        accept all written warrants so signed and shall be
4        released from liability for all payments made on those
5        warrants.
6        (11) Diversity, equity, and inclusion plans.
7            (A) Each applicant selected in a procurement event
8        to contract to supply renewable energy credits in
9        accordance with this subsection (c-5) and each owner
10        selected by the Department to receive a grant or
11        grants to support the construction and operation of a
12        new energy storage facility or facilities in
13        accordance with this subsection (c-5) shall, within 60
14        days following the Commission's approval of the
15        applicant to contract to supply renewable energy
16        credits or within 60 days following execution of a
17        grant contract with the Department, as applicable,
18        submit to the Commission a diversity, equity, and
19        inclusion plan setting forth the applicant's or
20        owner's numeric goals for the diversity composition of
21        its supplier entities for the new renewable energy
22        facility or new energy storage facility, as
23        applicable, which shall be referred to for purposes of
24        this paragraph (11) as the project, and the
25        applicant's or owner's action plan and schedule for
26        achieving those goals.



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1            (B) For purposes of this paragraph (11), diversity
2        composition shall be based on the percentage, which
3        shall be a minimum of 25%, of eligible expenditures
4        for contract awards for materials and services (which
5        shall be defined in the plan) to business enterprises
6        owned by minority persons, women, or persons with
7        disabilities as defined in Section 2 of the Business
8        Enterprise for Minorities, Women, and Persons with
9        Disabilities Act, to LGBTQ business enterprises, to
10        veteran-owned business enterprises, and to business
11        enterprises located in environmental justice
12        communities. The diversity composition goals of the
13        plan may include eligible expenditures in areas for
14        vendor or supplier opportunities in addition to
15        development and construction of the project, and may
16        exclude from eligible expenditures materials and
17        services with limited market availability, limited
18        production and availability from suppliers in the
19        United States, such as solar panels and storage
20        batteries, and material and services that are subject
21        to critical energy infrastructure or cybersecurity
22        requirements or restrictions. The plan may provide
23        that the diversity composition goals may be met
24        through Tier 1 Direct or Tier 2 subcontracting
25        expenditures or a combination thereof for the project.
26            (C) The plan shall provide for, but not be limited



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1        to: (i) internal initiatives, including multi-tier
2        initiatives, by the applicant or owner, or by its
3        engineering, procurement and construction contractor
4        if one is used for the project, which for purposes of
5        this paragraph (11) shall be referred to as the EPC
6        contractor, to enable diverse businesses to be
7        considered fairly for selection to provide materials
8        and services; (ii) requirements for the applicant or
9        owner or its EPC contractor to proactively solicit and
10        utilize diverse businesses to provide materials and
11        services; and (iii) requirements for the applicant or
12        owner or its EPC contractor to hire a diverse
13        workforce for the project. The plan shall include a
14        description of the applicant's or owner's diversity
15        recruiting efforts both for the project and for other
16        areas of the applicant's or owner's business
17        operations. The plan shall provide for the imposition
18        of financial penalties on the applicant's or owner's
19        EPC contractor for failure to exercise best efforts to
20        comply with and execute the EPC contractor's diversity
21        obligations under the plan. The plan may provide for
22        the applicant or owner to set aside a portion of the
23        work on the project to serve as an incubation program
24        for qualified businesses, as specified in the plan,
25        owned by minority persons, women, persons with
26        disabilities, LGBTQ persons, and veterans, and



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1        businesses located in environmental justice
2        communities, seeking to enter the renewable energy
3        industry.
4            (D) The applicant or owner may submit a revised or
5        updated plan to the Commission from time to time as
6        circumstances warrant. The applicant or owner shall
7        file annual reports with the Commission detailing the
8        applicant's or owner's progress in implementing its
9        plan and achieving its goals and any modifications the
10        applicant or owner has made to its plan to better
11        achieve its diversity, equity and inclusion goals. The
12        applicant or owner shall file a final report on the
13        fifth June 1 following the commercial operation date
14        of the new renewable energy resource or new energy
15        storage facility, but the applicant or owner shall
16        thereafter continue to be subject to applicable
17        reporting requirements of Section 5-117 of the Public
18        Utilities Act.
19    (c-10) Equity accountability system. It is the purpose of
20this subsection (c-10) to create an equity accountability
21system, which includes the minimum equity standards for all
22renewable energy procurements, the equity category of the
23Adjustable Block Program, and the equity prioritization for
24noncompetitive procurements, that is successful in advancing
25priority access to the clean energy economy for businesses and
26workers from communities that have been excluded from economic



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1opportunities in the energy sector, have been subject to
2disproportionate levels of pollution, and have
3disproportionately experienced negative public health
4outcomes. Further, it is the purpose of this subsection to
5ensure that this equity accountability system is successful in
6advancing equity across Illinois by providing access to the
7clean energy economy for businesses and workers from
8communities that have been historically excluded from economic
9opportunities in the energy sector, have been subject to
10disproportionate levels of pollution, and have
11disproportionately experienced negative public health
13        (1) Minimum equity standards. The Agency shall create
14    programs with the purpose of increasing access to and
15    development of equity eligible contractors, who are prime
16    contractors and subcontractors, across all of the programs
17    it manages. All applications for renewable energy credit
18    procurements shall comply with specific minimum equity
19    commitments. Starting in the delivery year immediately
20    following the next long-term renewable resources
21    procurement plan, at least 10% of the project workforce
22    for each entity participating in a procurement program
23    outlined in this subsection (c-10) must be done by equity
24    eligible persons or equity eligible contractors. The
25    Agency shall increase the minimum percentage each delivery
26    year thereafter by increments that ensure a statewide



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1    average of 30% of the project workforce for each entity
2    participating in a procurement program is done by equity
3    eligible persons or equity eligible contractors by 2030.
4    The Agency shall propose a schedule of percentage
5    increases to the minimum equity standards in its draft
6    revised renewable energy resources procurement plan
7    submitted to the Commission for approval pursuant to
8    paragraph (5) of subsection (b) of Section 16-111.5 of the
9    Public Utilities Act. In determining these annual
10    increases, the Agency shall have the discretion to
11    establish different minimum equity standards for different
12    types of procurements and different regions of the State
13    if the Agency finds that doing so will further the
14    purposes of this subsection (c-10). The proposed schedule
15    of annual increases shall be revisited and updated on an
16    annual basis. Revisions shall be developed with
17    stakeholder input, including from equity eligible persons,
18    equity eligible contractors, clean energy industry
19    representatives, and community-based organizations that
20    work with such persons and contractors.
21            (A) At the start of each delivery year, the Agency
22        shall require a compliance plan from each entity
23        participating in a procurement program of subsection
24        (c) of this Section that demonstrates how they will
25        achieve compliance with the minimum equity standard
26        percentage for work completed in that delivery year.



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1        If an entity applies for its approved vendor or
2        designee status between delivery years, the Agency
3        shall require a compliance plan at the time of
4        application.
5            (B) Halfway through each delivery year, the Agency
6        shall require each entity participating in a
7        procurement program to confirm that it will achieve
8        compliance in that delivery year, when applicable. The
9        Agency may offer corrective action plans to entities
10        that are not on track to achieve compliance.
11            (C) At the end of each delivery year, each entity
12        participating and completing work in that delivery
13        year in a procurement program of subsection (c) shall
14        submit a report to the Agency that demonstrates how it
15        achieved compliance with the minimum equity standards
16        percentage for that delivery year.
17            (D) The Agency shall prohibit participation in
18        procurement programs by an approved vendor or
19        designee, as applicable, or entities with which an
20        approved vendor or designee, as applicable, shares a
21        common parent company if an approved vendor or
22        designee, as applicable, failed to meet the minimum
23        equity standards for the prior delivery year. Waivers
24        approved for lack of equity eligible persons or equity
25        eligible contractors in a geographic area of a project
26        shall not count against the approved vendor or



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1        designee. The Agency shall offer a corrective action
2        plan for any such entities to assist them in obtaining
3        compliance and shall allow continued access to
4        procurement programs upon an approved vendor or
5        designee demonstrating compliance.
6            (E) The Agency shall pursue efficiencies achieved
7        by combining with other approved vendor or designee
8        reporting.
9        (2) Equity accountability system within the Adjustable
10    Block program. The equity category described in item (vi)
11    of subparagraph (K) of subsection (c) is only available to
12    applicants that are equity eligible contractors.
13        (3) Equity accountability system within competitive
14    procurements. Through its long-term renewable resources
15    procurement plan, the Agency shall develop requirements
16    for ensuring that competitive procurement processes,
17    including utility-scale solar, utility-scale wind, and
18    brownfield site photovoltaic projects, advance the equity
19    goals of this subsection (c-10). Subject to Commission
20    approval, the Agency shall develop bid application
21    requirements and a bid evaluation methodology for ensuring
22    that utilization of equity eligible contractors, whether
23    as bidders or as participants on project development, is
24    optimized, including requiring that winning or successful
25    applicants for utility-scale projects are or will partner
26    with equity eligible contractors and giving preference to



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1    bids through which a higher portion of contract value
2    flows to equity eligible contractors. To the extent
3    practicable, entities participating in competitive
4    procurements shall also be required to meet all the equity
5    accountability requirements for approved vendors and their
6    designees under this subsection (c-10). In developing
7    these requirements, the Agency shall also consider whether
8    equity goals can be further advanced through additional
9    measures.
10        (4) In the first revision to the long-term renewable
11    energy resources procurement plan and each revision
12    thereafter, the Agency shall include the following:
13            (A) The current status and number of equity
14        eligible contractors listed in the Energy Workforce
15        Equity Database designed in subsection (c-25),
16        including the number of equity eligible contractors
17        with current certifications as issued by the Agency.
18            (B) A mechanism for measuring, tracking, and
19        reporting project workforce at the approved vendor or
20        designee level, as applicable, which shall include a
21        measurement methodology and records to be made
22        available for audit by the Agency or the Program
23        Administrator.
24            (C) A program for approved vendors, designees,
25        eligible persons, and equity eligible contractors to
26        receive trainings, guidance, and other support from



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1        the Agency or its designee regarding the equity
2        category outlined in item (vi) of subparagraph (K) of
3        paragraph (1) of subsection (c) and in meeting the
4        minimum equity standards of this subsection (c-10).
5            (D) A process for certifying equity eligible
6        contractors and equity eligible persons. The
7        certification process shall coordinate with the Energy
8        Workforce Equity Database set forth in subsection
9        (c-25).
10            (E) An application for waiver of the minimum
11        equity standards of this subsection, which the Agency
12        shall have the discretion to grant in rare
13        circumstances. The Agency may grant such a waiver
14        where the applicant provides evidence of significant
15        efforts toward meeting the minimum equity commitment,
16        including: use of the Energy Workforce Equity
17        Database; efforts to hire or contract with entities
18        that hire eligible persons; and efforts to establish
19        contracting relationships with eligible contractors.
20        The Agency shall support applicants in understanding
21        the Energy Workforce Equity Database and other
22        resources for pursuing compliance of the minimum
23        equity standards. Waivers shall be project-specific,
24        unless the Agency deems it necessary to grant a waiver
25        across a portfolio of projects, and in effect for no
26        longer than one year. Any waiver extension or



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1        subsequent waiver request from an applicant shall be
2        subject to the requirements of this Section and shall
3        specify efforts made to reach compliance. When
4        considering whether to grant a waiver, and to what
5        extent, the Agency shall consider the degree to which
6        similarly situated applicants have been able to meet
7        these minimum equity commitments. For repeated waiver
8        requests for specific lack of eligible persons or
9        eligible contractors available, the Agency shall make
10        recommendations to target recruitment to add such
11        eligible persons or eligible contractors to the
12        database.
13        (5) The Agency shall collect information about work on
14    projects or portfolios of projects subject to these
15    minimum equity standards to ensure compliance with this
16    subsection (c-10). Reporting in furtherance of this
17    requirement may be combined with other annual reporting
18    requirements. Such reporting shall include proof of
19    certification of each equity eligible contractor or equity
20    eligible person during the applicable time period.
21        (6) The Agency shall keep confidential all information
22    and communication that provides private or personal
23    information.
24        (7) Modifications to the equity accountability system.
25    As part of the update of the long-term renewable resources
26    procurement plan to be initiated in 2023, or sooner if the



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1    Agency deems necessary, the Agency shall determine the
2    extent to which the equity accountability system described
3    in this subsection (c-10) has advanced the goals of this
4    amendatory Act of the 102nd General Assembly, including
5    through the inclusion of equity eligible persons and
6    equity eligible contractors in renewable energy credit
7    projects. If the Agency finds that the equity
8    accountability system has failed to meet those goals to
9    its fullest potential, the Agency may revise the following
10    criteria for future Agency procurements: (A) the
11    percentage of project workforce, or other appropriate
12    workforce measure, certified as equity eligible persons or
13    equity eligible contractors; (B) definitions for equity
14    investment eligible persons and equity investment eligible
15    community; and (C) such other modifications necessary to
16    advance the goals of this amendatory Act of the 102nd
17    General Assembly effectively. Such revised criteria may
18    also establish distinct equity accountability systems for
19    different types of procurements or different regions of
20    the State if the Agency finds that doing so will further
21    the purposes of such programs. Revisions shall be
22    developed with stakeholder input, including from equity
23    eligible persons, equity eligible contractors, and
24    community-based organizations that work with such persons
25    and contractors.
26    (c-15) Racial discrimination elimination powers and



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2        (1) Purpose. It is the purpose of this subsection to
3    empower the Agency and other State actors to remedy racial
4    discrimination in Illinois' clean energy economy as
5    effectively and expediently as possible, including through
6    the use of race-conscious remedies, such as race-conscious
7    contracting and hiring goals, as consistent with State and
8    federal law.
9        (2) Racial disparity and discrimination review
10    process.
11            (A) Within one year after awarding contracts using
12        the equity actions processes established in this
13        Section, the Agency shall publish a report evaluating
14        the effectiveness of the equity actions point criteria
15        of this Section in increasing participation of equity
16        eligible persons and equity eligible contractors. The
17        report shall disaggregate participating workers and
18        contractors by race and ethnicity. The report shall be
19        forwarded to the Governor, the General Assembly, and
20        the Illinois Commerce Commission and be made available
21        to the public.
22            (B) As soon as is practicable thereafter, the
23        Agency, in consultation with the Department of
24        Commerce and Economic Opportunity, Department of
25        Labor, and other agencies that may be relevant, shall
26        commission and publish a disparity and availability



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1        study that measures the presence and impact of
2        discrimination on minority businesses and workers in
3        Illinois' clean energy economy. The Agency may hire
4        consultants and experts to conduct the disparity and
5        availability study, with the retention of those
6        consultants and experts exempt from the requirements
7        of Section 20-10 of the Illinois Procurement Code. The
8        Illinois Power Agency shall forward a copy of its
9        findings and recommendations to the Governor, the
10        General Assembly, and the Illinois Commerce
11        Commission. If the disparity and availability study
12        establishes a strong basis in evidence that there is
13        discrimination in Illinois' clean energy economy, the
14        Agency, Department of Commerce and Economic
15        Opportunity, Department of Labor, Department of
16        Corrections, and other appropriate agencies shall take
17        appropriate remedial actions, including race-conscious
18        remedial actions as consistent with State and federal
19        law, to effectively remedy this discrimination. Such
20        remedies may include modification of the equity
21        accountability system as described in subsection
22        (c-10).
23    (c-20) Program data collection.
24        (1) Purpose. Data collection, data analysis, and
25    reporting are critical to ensure that the benefits of the
26    clean energy economy provided to Illinois residents and



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1    businesses are equitably distributed across the State. The
2    Agency shall collect data from program applicants in order
3    to track and improve equitable distribution of benefits
4    across Illinois communities for all procurements the
5    Agency conducts. The Agency shall use this data to, among
6    other things, measure any potential impact of racial
7    discrimination on the distribution of benefits and provide
8    information necessary to correct any discrimination
9    through methods consistent with State and federal law.
10        (2) Agency collection of program data. The Agency
11    shall collect demographic and geographic data for each
12    entity awarded contracts under any Agency-administered
13    program.
14        (3) Required information to be collected. The Agency
15    shall collect the following information from applicants
16    and program participants where applicable:
17            (A) demographic information, including racial or
18        ethnic identity for real persons employed, contracted,
19        or subcontracted through the program and owners of
20        businesses or entities that apply to receive renewable
21        energy credits from the Agency;
22            (B) geographic location of the residency of real
23        persons employed, contracted, or subcontracted through
24        the program and geographic location of the
25        headquarters of the business or entity that applies to
26        receive renewable energy credits from the Agency; and



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1            (C) any other information the Agency determines is
2        necessary for the purpose of achieving the purpose of
3        this subsection.
4        (4) Publication of collected information. The Agency
5    shall publish, at least annually, information on the
6    demographics of program participants on an aggregate
7    basis.
8        (5) Nothing in this subsection shall be interpreted to
9    limit the authority of the Agency, or other agency or
10    department of the State, to require or collect demographic
11    information from applicants of other State programs.
12    (c-25) Energy Workforce Equity Database.
13        (1) The Agency, in consultation with the Department of
14    Commerce and Economic Opportunity, shall create an Energy
15    Workforce Equity Database, and may contract with a third
16    party to do so ("database program administrator"). If the
17    Department decides to contract with a third party, that
18    third party shall be exempt from the requirements of
19    Section 20-10 of the Illinois Procurement Code. The Energy
20    Workforce Equity Database shall be a searchable database
21    of suppliers, vendors, and subcontractors for clean energy
22    industries that is:
23            (A) publicly accessible;
24            (B) easy for people to find and use;
25            (C) organized by company specialty or field;
26            (D) region-specific; and



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1            (E) populated with information including, but not
2        limited to, contacts for suppliers, vendors, or
3        subcontractors who are minority and women-owned
4        business enterprise certified or who participate or
5        have participated in any of the programs described in
6        this Act.
7        (2) The Agency shall create an easily accessible,
8    public facing online tool using the database information
9    that includes, at a minimum, the following:
10            (A) a map of environmental justice and equity
11        investment eligible communities;
12            (B) job postings and recruiting opportunities;
13            (C) a means by which recruiting clean energy
14        companies can find and interact with current or former
15        participants of clean energy workforce training
16        programs;
17            (D) information on workforce training service
18        providers and training opportunities available to
19        prospective workers;
20            (E) renewable energy company diversity reporting;
21            (F) a list of equity eligible contractors with
22        their contact information, types of work performed,
23        and locations worked in;
24            (G) reporting on outcomes of the programs
25        described in the workforce programs of the Energy
26        Transition Act, including information such as, but not



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1        limited to, retention rate, graduation rate, and
2        placement rates of trainees; and
3            (H) information about the Jobs and Environmental
4        Justice Grant Program, the Clean Energy Jobs and
5        Justice Fund, and other sources of capital.
6        (3) The Agency shall ensure the database is regularly
7    updated to ensure information is current and shall
8    coordinate with the Department of Commerce and Economic
9    Opportunity to ensure that it includes information on
10    individuals and entities that are or have participated in
11    the Clean Jobs Workforce Network Program, Clean Energy
12    Contractor Incubator Program, Returning Residents Clean
13    Jobs Training Program, or Clean Energy Primes Contractor
14    Accelerator Program.
15    (c-30) Enforcement of minimum equity standards. All
16entities seeking renewable energy credits must submit an
17annual report to demonstrate compliance with each of the
18equity commitments required under subsection (c-10). If the
19Agency concludes the entity has not met or maintained its
20minimum equity standards required under the applicable
21subparagraphs under subsection (c-10), the Agency shall deny
22the entity's ability to participate in procurement programs in
23subsection (c), including by withholding approved vendor or
24designee status. The Agency may require the entity to enter
25into a corrective action plan. An entity that is not
26recertified for failing to meet required equity actions in



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1subparagraph (c-10) may reapply once they have a corrective
2action plan and achieve compliance with the minimum equity
4    (d) Clean coal portfolio standard.
5        (1) The procurement plans shall include electricity
6    generated using clean coal. Each utility shall enter into
7    one or more sourcing agreements with the initial clean
8    coal facility, as provided in paragraph (3) of this
9    subsection (d), covering electricity generated by the
10    initial clean coal facility representing at least 5% of
11    each utility's total supply to serve the load of eligible
12    retail customers in 2015 and each year thereafter, as
13    described in paragraph (3) of this subsection (d), subject
14    to the limits specified in paragraph (2) of this
15    subsection (d). It is the goal of the State that by January
16    1, 2025, 25% of the electricity used in the State shall be
17    generated by cost-effective clean coal facilities. For
18    purposes of this subsection (d), "cost-effective" means
19    that the expenditures pursuant to such sourcing agreements
20    do not cause the limit stated in paragraph (2) of this
21    subsection (d) to be exceeded and do not exceed cost-based
22    benchmarks, which shall be developed to assess all
23    expenditures pursuant to such sourcing agreements covering
24    electricity generated by clean coal facilities, other than
25    the initial clean coal facility, by the procurement
26    administrator, in consultation with the Commission staff,



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



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1    purposes of this subsection (d), the total amount paid for
2    electric service includes without limitation amounts paid
3    for supply, transmission, distribution, surcharges and
4    add-on taxes.
5        Notwithstanding the requirements of this subsection
6    (d), the total amount paid under sourcing agreements with
7    clean coal facilities pursuant to the procurement plan for
8    any given year shall be reduced by an amount necessary to
9    limit the annual estimated average net increase due to the
10    costs of these resources included in the amounts paid by
11    eligible retail customers in connection with electric
12    service to:
13            (A) in 2010, no more than 0.5% of the amount paid
14        per kilowatthour by those customers during the year
15        ending May 31, 2009;
16            (B) in 2011, the greater of an additional 0.5% of
17        the amount paid per kilowatthour by those customers
18        during the year ending May 31, 2010 or 1% of the amount
19        paid per kilowatthour by those customers during the
20        year ending May 31, 2009;
21            (C) in 2012, the greater of an additional 0.5% of
22        the amount paid per kilowatthour by those customers
23        during the year ending May 31, 2011 or 1.5% of the
24        amount paid per kilowatthour by those customers during
25        the year ending May 31, 2009;
26            (D) in 2013, the greater of an additional 0.5% of



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



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



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



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1            sourcing agreement shall pay the contract price
2            for electricity delivered under such sourcing
3            agreement;
4                (ii) require delivery of electricity to the
5            regional transmission organization market of the
6            utility that is party to such sourcing agreement;
7                (iii) require the utility party to such
8            sourcing agreement to buy from the initial clean
9            coal facility in each hour an amount of energy
10            equal to all clean coal energy made available from
11            the initial clean coal facility during such hour
12            times a fraction, the numerator of which is such
13            utility's retail market sales of electricity
14            (expressed in kilowatthours sold) in the State
15            during the prior calendar month and the
16            denominator of which is the total retail market
17            sales of electricity (expressed in kilowatthours
18            sold) in the State by utilities during such prior
19            month and the sales of electricity (expressed in
20            kilowatthours sold) in the State by alternative
21            retail electric suppliers during such prior month
22            that are subject to the requirements of this
23            subsection (d) and paragraph (5) of subsection (d)
24            of Section 16-115 of the Public Utilities Act,
25            provided that the amount purchased by the utility
26            in any year will be limited by paragraph (2) of



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



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1            any year will be limited by paragraph (2) of this
2            subsection (d);
3                (ii) provide that the utility's payment
4            obligation in respect of the quantity of
5            electricity determined pursuant to the preceding
6            clause (i) shall be limited to an amount equal to
7            (1) the difference between the contract price
8            determined pursuant to subparagraph (A) of
9            paragraph (3) of this subsection (d) and the
10            day-ahead price for electricity delivered to the
11            regional transmission organization market of the
12            utility that is party to such sourcing agreement
13            (or any successor delivery point at which such
14            utility's supply obligations are financially
15            settled on an hourly basis) (the "reference
16            price") on the day preceding the day on which the
17            electricity is delivered to the initial clean coal
18            facility busbar, multiplied by (2) the quantity of
19            electricity determined pursuant to the preceding
20            clause (i); and
21                (iii) not require the utility to take physical
22            delivery of the electricity produced by the
23            facility;
24            (D) general provisions, which shall:
25                (i) specify a term of no more than 30 years,
26            commencing on the commercial operation date of the



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



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



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



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



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



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



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



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



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



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



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



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



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1    calendar year 2014. For an electric utility serving fewer
2    than 100,000 retail customers in this State that
3    requested, under Section 16-111.5 of the Public Utilities
4    Act, that the Agency procure power and energy for all or a
5    portion of the utility's Illinois load for the delivery
6    year commencing June 1, 2016, the Agency shall procure
7    contracts with zero emission facilities that are
8    reasonably capable of generating cost-effective zero
9    emission credits in an amount approximately equal to 16%
10    of the portion of power and energy to be procured by the
11    Agency for the utility. The duration of the contracts
12    procured under this subsection (d-5) shall be for a term
13    of 10 years ending May 31, 2027. The quantity of zero
14    emission credits to be procured under the contracts shall
15    be all of the zero emission credits generated by the zero
16    emission facility in each delivery year; however, if the
17    zero emission facility is owned by more than one entity,
18    then the quantity of zero emission credits to be procured
19    under the contracts shall be the amount of zero emission
20    credits that are generated from the portion of the zero
21    emission facility that is owned by the winning supplier.
22        The 16% value identified in this paragraph (1) is the
23    average of the percentage targets in subparagraph (B) of
24    paragraph (1) of subsection (c) of this Section for the 5
25    delivery years beginning June 1, 2017.
26        The procurement process shall be subject to the



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



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



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



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



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



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1                    June 1, 2020, and each year thereafter,
2                    the projected capacity price shall be
3                    equal to the sum of (1) 50% multiplied by
4                    the Base Residual Auction, or its
5                    successor, price for the ComEd zone as
6                    determined by PJM Interconnection LLC,
7                    divided by 24 hours per day, and (2) 50%
8                    multiplied by the resource auction price
9                    determined in the resource auction
10                    administered by the Midcontinent
11                    Independent System Operator, Inc., in
12                    which the largest percentage of load
13                    cleared for Local Resource Zone 4, divided
14                    by 24 hours per day, and where such price
15                    is determined by the Midcontinent
16                    Independent System Operator, Inc.
17            For purposes of this subsection (d-5):
18                "Rest of the RTO" and "ComEd Zone" shall have
19            the meaning ascribed to them by PJM
20            Interconnection, LLC.
21                "RTO" means regional transmission
22            organization.
23            (C) No later than 45 days after June 1, 2017 (the
24        effective date of Public Act 99-906), the Agency shall
25        publish its proposed zero emission standard
26        procurement plan. The plan shall be consistent with



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



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



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



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1                Protection Agency eGrid subregion carbon
2                dioxide emission rate and the U.S. Interagency
3                Working Group on Social Cost of Carbon's price
4                in the August 2016 Technical Update using a 3%
5                discount rate, adjusted for inflation for each
6                delivery year; and
7                    (bb) the costs of replacement with other
8                zero carbon dioxide resources, including wind
9                and photovoltaic, based upon the simple
10                average of the following:
11                        (I) the price, or if there is more
12                    than one price, the average of the prices,
13                    paid for renewable energy credits from new
14                    utility-scale wind projects in the
15                    procurement events specified in item (i)
16                    of subparagraph (G) of paragraph (1) of
17                    subsection (c) of this Section; and
18                        (II) the price, or if there is more
19                    than one price, the average of the prices,
20                    paid for renewable energy credits from new
21                    utility-scale solar projects and
22                    brownfield site photovoltaic projects in
23                    the procurement events specified in item
24                    (ii) of subparagraph (G) of paragraph (1)
25                    of subsection (c) of this Section and,
26                    after January 1, 2015, renewable energy



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



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



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