HB3445 EnrolledLRB103 29599 AMQ 55994 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Freedom of Information Act is amended by
5changing Section 7.5 as follows:
 
6    (5 ILCS 140/7.5)
7    Sec. 7.5. Statutory exemptions. To the extent provided for
8by the statutes referenced below, the following shall be
9exempt from inspection and copying:
10        (a) All information determined to be confidential
11    under Section 4002 of the Technology Advancement and
12    Development Act.
13        (b) Library circulation and order records identifying
14    library users with specific materials under the Library
15    Records Confidentiality Act.
16        (c) Applications, related documents, and medical
17    records received by the Experimental Organ Transplantation
18    Procedures Board and any and all documents or other
19    records prepared by the Experimental Organ Transplantation
20    Procedures Board or its staff relating to applications it
21    has received.
22        (d) Information and records held by the Department of
23    Public Health and its authorized representatives relating

 

 

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1    to known or suspected cases of sexually transmissible
2    disease or any information the disclosure of which is
3    restricted under the Illinois Sexually Transmissible
4    Disease Control Act.
5        (e) Information the disclosure of which is exempted
6    under Section 30 of the Radon Industry Licensing Act.
7        (f) Firm performance evaluations under Section 55 of
8    the Architectural, Engineering, and Land Surveying
9    Qualifications Based Selection Act.
10        (g) Information the disclosure of which is restricted
11    and exempted under Section 50 of the Illinois Prepaid
12    Tuition Act.
13        (h) Information the disclosure of which is exempted
14    under the State Officials and Employees Ethics Act, and
15    records of any lawfully created State or local inspector
16    general's office that would be exempt if created or
17    obtained by an Executive Inspector General's office under
18    that Act.
19        (i) Information contained in a local emergency energy
20    plan submitted to a municipality in accordance with a
21    local emergency energy plan ordinance that is adopted
22    under Section 11-21.5-5 of the Illinois Municipal Code.
23        (j) Information and data concerning the distribution
24    of surcharge moneys collected and remitted by carriers
25    under the Emergency Telephone System Act.
26        (k) Law enforcement officer identification information

 

 

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1    or driver identification information compiled by a law
2    enforcement agency or the Department of Transportation
3    under Section 11-212 of the Illinois Vehicle Code.
4        (l) Records and information provided to a residential
5    health care facility resident sexual assault and death
6    review team or the Executive Council under the Abuse
7    Prevention Review Team Act.
8        (m) Information provided to the predatory lending
9    database created pursuant to Article 3 of the Residential
10    Real Property Disclosure Act, except to the extent
11    authorized under that Article.
12        (n) Defense budgets and petitions for certification of
13    compensation and expenses for court appointed trial
14    counsel as provided under Sections 10 and 15 of the
15    Capital Crimes Litigation Act. This subsection (n) shall
16    apply until the conclusion of the trial of the case, even
17    if the prosecution chooses not to pursue the death penalty
18    prior to trial or sentencing.
19        (o) Information that is prohibited from being
20    disclosed under Section 4 of the Illinois Health and
21    Hazardous Substances Registry Act.
22        (p) Security portions of system safety program plans,
23    investigation reports, surveys, schedules, lists, data, or
24    information compiled, collected, or prepared by or for the
25    Department of Transportation under Sections 2705-300 and
26    2705-616 of the Department of Transportation Law of the

 

 

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1    Civil Administrative Code of Illinois, the Regional
2    Transportation Authority under Section 2.11 of the
3    Regional Transportation Authority Act, or the St. Clair
4    County Transit District under the Bi-State Transit Safety
5    Act.
6        (q) Information prohibited from being disclosed by the
7    Personnel Record Review Act.
8        (r) Information prohibited from being disclosed by the
9    Illinois School Student Records Act.
10        (s) Information the disclosure of which is restricted
11    under Section 5-108 of the Public Utilities Act.
12        (t) All identified or deidentified health information
13    in the form of health data or medical records contained
14    in, stored in, submitted to, transferred by, or released
15    from the Illinois Health Information Exchange, and
16    identified or deidentified health information in the form
17    of health data and medical records of the Illinois Health
18    Information Exchange in the possession of the Illinois
19    Health Information Exchange Office due to its
20    administration of the Illinois Health Information
21    Exchange. The terms "identified" and "deidentified" shall
22    be given the same meaning as in the Health Insurance
23    Portability and Accountability Act of 1996, Public Law
24    104-191, or any subsequent amendments thereto, and any
25    regulations promulgated thereunder.
26        (u) Records and information provided to an independent

 

 

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1    team of experts under the Developmental Disability and
2    Mental Health Safety Act (also known as Brian's Law).
3        (v) Names and information of people who have applied
4    for or received Firearm Owner's Identification Cards under
5    the Firearm Owners Identification Card Act or applied for
6    or received a concealed carry license under the Firearm
7    Concealed Carry Act, unless otherwise authorized by the
8    Firearm Concealed Carry Act; and databases under the
9    Firearm Concealed Carry Act, records of the Concealed
10    Carry Licensing Review Board under the Firearm Concealed
11    Carry Act, and law enforcement agency objections under the
12    Firearm Concealed Carry Act.
13        (v-5) Records of the Firearm Owner's Identification
14    Card Review Board that are exempted from disclosure under
15    Section 10 of the Firearm Owners Identification Card Act.
16        (w) Personally identifiable information which is
17    exempted from disclosure under subsection (g) of Section
18    19.1 of the Toll Highway Act.
19        (x) Information which is exempted from disclosure
20    under Section 5-1014.3 of the Counties Code or Section
21    8-11-21 of the Illinois Municipal Code.
22        (y) Confidential information under the Adult
23    Protective Services Act and its predecessor enabling
24    statute, the Elder Abuse and Neglect Act, including
25    information about the identity and administrative finding
26    against any caregiver of a verified and substantiated

 

 

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1    decision of abuse, neglect, or financial exploitation of
2    an eligible adult maintained in the Registry established
3    under Section 7.5 of the Adult Protective Services Act.
4        (z) Records and information provided to a fatality
5    review team or the Illinois Fatality Review Team Advisory
6    Council under Section 15 of the Adult Protective Services
7    Act.
8        (aa) Information which is exempted from disclosure
9    under Section 2.37 of the Wildlife Code.
10        (bb) Information which is or was prohibited from
11    disclosure by the Juvenile Court Act of 1987.
12        (cc) Recordings made under the Law Enforcement
13    Officer-Worn Body Camera Act, except to the extent
14    authorized under that Act.
15        (dd) Information that is prohibited from being
16    disclosed under Section 45 of the Condominium and Common
17    Interest Community Ombudsperson Act.
18        (ee) Information that is exempted from disclosure
19    under Section 30.1 of the Pharmacy Practice Act.
20        (ff) Information that is exempted from disclosure
21    under the Revised Uniform Unclaimed Property Act.
22        (gg) Information that is prohibited from being
23    disclosed under Section 7-603.5 of the Illinois Vehicle
24    Code.
25        (hh) Records that are exempt from disclosure under
26    Section 1A-16.7 of the Election Code.

 

 

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1        (ii) Information which is exempted from disclosure
2    under Section 2505-800 of the Department of Revenue Law of
3    the Civil Administrative Code of Illinois.
4        (jj) Information and reports that are required to be
5    submitted to the Department of Labor by registering day
6    and temporary labor service agencies but are exempt from
7    disclosure under subsection (a-1) of Section 45 of the Day
8    and Temporary Labor Services Act.
9        (kk) Information prohibited from disclosure under the
10    Seizure and Forfeiture Reporting Act.
11        (ll) Information the disclosure of which is restricted
12    and exempted under Section 5-30.8 of the Illinois Public
13    Aid Code.
14        (mm) Records that are exempt from disclosure under
15    Section 4.2 of the Crime Victims Compensation Act.
16        (nn) Information that is exempt from disclosure under
17    Section 70 of the Higher Education Student Assistance Act.
18        (oo) Communications, notes, records, and reports
19    arising out of a peer support counseling session
20    prohibited from disclosure under the First Responders
21    Suicide Prevention Act.
22        (pp) Names and all identifying information relating to
23    an employee of an emergency services provider or law
24    enforcement agency under the First Responders Suicide
25    Prevention Act.
26        (qq) Information and records held by the Department of

 

 

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1    Public Health and its authorized representatives collected
2    under the Reproductive Health Act.
3        (rr) Information that is exempt from disclosure under
4    the Cannabis Regulation and Tax Act.
5        (ss) Data reported by an employer to the Department of
6    Human Rights pursuant to Section 2-108 of the Illinois
7    Human Rights Act.
8        (tt) Recordings made under the Children's Advocacy
9    Center Act, except to the extent authorized under that
10    Act.
11        (uu) Information that is exempt from disclosure under
12    Section 50 of the Sexual Assault Evidence Submission Act.
13        (vv) Information that is exempt from disclosure under
14    subsections (f) and (j) of Section 5-36 of the Illinois
15    Public Aid Code.
16        (ww) Information that is exempt from disclosure under
17    Section 16.8 of the State Treasurer Act.
18        (xx) Information that is exempt from disclosure or
19    information that shall not be made public under the
20    Illinois Insurance Code.
21        (yy) Information prohibited from being disclosed under
22    the Illinois Educational Labor Relations Act.
23        (zz) Information prohibited from being disclosed under
24    the Illinois Public Labor Relations Act.
25        (aaa) Information prohibited from being disclosed
26    under Section 1-167 of the Illinois Pension Code.

 

 

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1        (bbb) Information that is prohibited from disclosure
2    by the Illinois Police Training Act and the Illinois State
3    Police Act.
4        (ccc) Records exempt from disclosure under Section
5    2605-304 of the Illinois State Police Law of the Civil
6    Administrative Code of Illinois.
7        (ddd) Information prohibited from being disclosed
8    under Section 35 of the Address Confidentiality for
9    Victims of Domestic Violence, Sexual Assault, Human
10    Trafficking, or Stalking Act.
11        (eee) Information prohibited from being disclosed
12    under subsection (b) of Section 75 of the Domestic
13    Violence Fatality Review Act.
14        (fff) Images from cameras under the Expressway Camera
15    Act. This subsection (fff) is inoperative on and after
16    July 1, 2023.
17        (ggg) Information prohibited from disclosure under
18    paragraph (3) of subsection (a) of Section 14 of the Nurse
19    Agency Licensing Act.
20        (hhh) Information submitted to the Illinois Department
21    of State Police in an affidavit or application for an
22    assault weapon endorsement, assault weapon attachment
23    endorsement, .50 caliber rifle endorsement, or .50 caliber
24    cartridge endorsement under the Firearm Owners
25    Identification Card Act.
26        (iii) Information prohibited from being disclosed

 

 

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1    under subsection (e) of Section 1-129 of the Illinois
2    Power Agency Act.
3(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
4101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
51-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
6eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
7101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
81-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
9eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
10102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
117-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
122-13-23.)"; and
 
13    Section 10. The Illinois Power Agency Act is amended by
14changing Section 1-75 and adding Section 1-129 as follows:
 
15    (20 ILCS 3855/1-75)
16    Sec. 1-75. Planning and Procurement Bureau. The Planning
17and Procurement Bureau has the following duties and
18responsibilities:
19    (a) The Planning and Procurement Bureau shall each year,
20beginning in 2008, develop procurement plans and conduct
21competitive procurement processes in accordance with the
22requirements of Section 16-111.5 of the Public Utilities Act
23for the eligible retail customers of electric utilities that
24on December 31, 2005 provided electric service to at least

 

 

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1100,000 customers in Illinois. Beginning with the delivery
2year commencing on June 1, 2017, the Planning and Procurement
3Bureau shall develop plans and processes for the procurement
4of zero emission credits from zero emission facilities in
5accordance with the requirements of subsection (d-5) of this
6Section. Beginning on the effective date of this amendatory
7Act of the 102nd General Assembly, the Planning and
8Procurement Bureau shall develop plans and processes for the
9procurement of carbon mitigation credits from carbon-free
10energy resources in accordance with the requirements of
11subsection (d-10) of this Section. The Planning and
12Procurement Bureau shall also develop procurement plans and
13conduct competitive procurement processes in accordance with
14the requirements of Section 16-111.5 of the Public Utilities
15Act for the eligible retail customers of small
16multi-jurisdictional electric utilities that (i) on December
1731, 2005 served less than 100,000 customers in Illinois and
18(ii) request a procurement plan for their Illinois
19jurisdictional load. This Section shall not apply to a small
20multi-jurisdictional utility until such time as a small
21multi-jurisdictional utility requests the Agency to prepare a
22procurement plan for their Illinois jurisdictional load. For
23the purposes of this Section, the term "eligible retail
24customers" has the same definition as found in Section
2516-111.5(a) of the Public Utilities Act.
26    Beginning with the plan or plans to be implemented in the

 

 

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12017 delivery year, the Agency shall no longer include the
2procurement of renewable energy resources in the annual
3procurement plans required by this subsection (a), except as
4provided in subsection (q) of Section 16-111.5 of the Public
5Utilities Act, and shall instead develop a long-term renewable
6resources procurement plan in accordance with subsection (c)
7of this Section and Section 16-111.5 of the Public Utilities
8Act.
9    In accordance with subsection (c-5) of this Section, the
10Planning and Procurement Bureau shall oversee the procurement
11by electric utilities that served more than 300,000 retail
12customers in this State as of January 1, 2019 of renewable
13energy credits from new utility-scale solar projects to be
14installed, along with energy storage facilities, at or
15adjacent to the sites of electric generating facilities that,
16as of January 1, 2016, burned coal as their primary fuel
17source.
18        (1) The Agency shall each year, beginning in 2008, as
19    needed, issue a request for qualifications for experts or
20    expert consulting firms to develop the procurement plans
21    in accordance with Section 16-111.5 of the Public
22    Utilities Act. In order to qualify an expert or expert
23    consulting firm must have:
24            (A) direct previous experience assembling
25        large-scale power supply plans or portfolios for
26        end-use customers;

 

 

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

 

 

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

 

 

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

 

 

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1    submitted. If the Commission rejects, within 5 days, the
2    Agency's selection, the Agency shall submit another
3    recommendation within 3 days based on the proposals
4    submitted. The Agency shall award a 5-year contract to the
5    expert or expert consulting firm so selected with
6    Commission approval.
7    (b) The experts or expert consulting firms retained by the
8Agency shall, as appropriate, prepare procurement plans, and
9conduct a competitive procurement process as prescribed in
10Section 16-111.5 of the Public Utilities Act, to ensure
11adequate, reliable, affordable, efficient, and environmentally
12sustainable electric service at the lowest total cost over
13time, taking into account any benefits of price stability, for
14eligible retail customers of electric utilities that on
15December 31, 2005 provided electric service to at least
16100,000 customers in the State of Illinois, and for eligible
17Illinois retail customers of small multi-jurisdictional
18electric utilities that (i) on December 31, 2005 served less
19than 100,000 customers in Illinois and (ii) request a
20procurement plan for their Illinois jurisdictional load.
21    (c) Renewable portfolio standard.
22        (1)(A) The Agency shall develop a long-term renewable
23    resources procurement plan that shall include procurement
24    programs and competitive procurement events necessary to
25    meet the goals set forth in this subsection (c). The
26    initial long-term renewable resources procurement plan

 

 

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1    shall be released for comment no later than 160 days after
2    June 1, 2017 (the effective date of Public Act 99-906).
3    The Agency shall review, and may revise on an expedited
4    basis, the long-term renewable resources procurement plan
5    at least every 2 years, which shall be conducted in
6    conjunction with the procurement plan under Section
7    16-111.5 of the Public Utilities Act to the extent
8    practicable to minimize administrative expense. No later
9    than 120 days after the effective date of this amendatory
10    Act of the 102nd General Assembly, the Agency shall
11    release for comment a revision to the long-term renewable
12    resources procurement plan, updating elements of the most
13    recently approved plan as needed to comply with this
14    amendatory Act of the 102nd General Assembly, and any
15    long-term renewable resources procurement plan update
16    published by the Agency but not yet approved by the
17    Illinois Commerce Commission shall be withdrawn. The
18    long-term renewable resources procurement plans shall be
19    subject to review and approval by the Commission under
20    Section 16-111.5 of the Public Utilities Act.
21        (B) Subject to subparagraph (F) of this paragraph (1),
22    the long-term renewable resources procurement plan shall
23    attempt to meet the goals for procurement of renewable
24    energy credits at levels of at least the following overall
25    percentages: 13% by the 2017 delivery year; increasing by
26    at least 1.5% each delivery year thereafter to at least

 

 

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1    25% by the 2025 delivery year; increasing by at least 3%
2    each delivery year thereafter to at least 40% by the 2030
3    delivery year, and continuing at no less than 40% for each
4    delivery year thereafter. The Agency shall attempt to
5    procure 50% by delivery year 2040. The Agency shall
6    determine the annual increase between delivery year 2030
7    and delivery year 2040, if any, taking into account energy
8    demand, other energy resources, and other public policy
9    goals. In the event of a conflict between these goals and
10    the new wind and new photovoltaic procurement requirements
11    described in items (i) through (iii) of subparagraph (C)
12    of this paragraph (1), the long-term plan shall prioritize
13    compliance with the new wind and new photovoltaic
14    procurement requirements described in items (i) through
15    (iii) of subparagraph (C) of this paragraph (1) over the
16    annual percentage targets described in this subparagraph
17    (B). The Agency shall not comply with the annual
18    percentage targets described in this subparagraph (B) by
19    procuring renewable energy credits that are unlikely to
20    lead to the development of new renewable resources.
21        For the delivery year beginning June 1, 2017, the
22    procurement plan shall attempt to include, subject to the
23    prioritization outlined in this subparagraph (B),
24    cost-effective renewable energy resources equal to at
25    least 13% of each utility's load for eligible retail
26    customers and 13% of the applicable portion of each

 

 

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1    utility's load for retail customers who are not eligible
2    retail customers, which applicable portion shall equal 50%
3    of the utility's load for retail customers who are not
4    eligible retail customers on February 28, 2017.
5        For the delivery year beginning June 1, 2018, the
6    procurement plan shall attempt to include, subject to the
7    prioritization outlined in this subparagraph (B),
8    cost-effective renewable energy resources equal to at
9    least 14.5% of each utility's load for eligible retail
10    customers and 14.5% of the applicable portion of each
11    utility's load for retail customers who are not eligible
12    retail customers, which applicable portion shall equal 75%
13    of the utility's load for retail customers who are not
14    eligible retail customers on February 28, 2017.
15        For the delivery year beginning June 1, 2019, and for
16    each year thereafter, the procurement plans shall attempt
17    to include, subject to the prioritization outlined in this
18    subparagraph (B), cost-effective renewable energy
19    resources equal to a minimum percentage of each utility's
20    load for all retail customers as follows: 16% by June 1,
21    2019; increasing by 1.5% each year thereafter to 25% by
22    June 1, 2025; and 25% by June 1, 2026; increasing by at
23    least 3% each delivery year thereafter to at least 40% by
24    the 2030 delivery year, and continuing at no less than 40%
25    for each delivery year thereafter. The Agency shall
26    attempt to procure 50% by delivery year 2040. The Agency

 

 

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1    shall determine the annual increase between delivery year
2    2030 and delivery year 2040, if any, taking into account
3    energy demand, other energy resources, and other public
4    policy goals.
5        For each delivery year, the Agency shall first
6    recognize each utility's obligations for that delivery
7    year under existing contracts. Any renewable energy
8    credits under existing contracts, including renewable
9    energy credits as part of renewable energy resources,
10    shall be used to meet the goals set forth in this
11    subsection (c) for the delivery year.
12        (C) The long-term renewable resources procurement plan
13    described in subparagraph (A) of this paragraph (1) shall
14    include the procurement of renewable energy credits from
15    new projects in amounts equal to at least the following:
16            (i) 10,000,000 renewable energy credits delivered
17        annually by the end of the 2021 delivery year, and
18        increasing ratably to reach 45,000,000 renewable
19        energy credits delivered annually from new wind and
20        solar projects by the end of delivery year 2030 such
21        that the goals in subparagraph (B) of this paragraph
22        (1) are met entirely by procurements of renewable
23        energy credits from new wind and photovoltaic
24        projects. Of that amount, to the extent possible, the
25        Agency shall procure 45% from wind projects and 55%
26        from photovoltaic projects. Of the amount to be

 

 

HB3445 Enrolled- 21 -LRB103 29599 AMQ 55994 b

1        procured from photovoltaic projects, the Agency shall
2        procure: at least 50% from solar photovoltaic projects
3        using the program outlined in subparagraph (K) of this
4        paragraph (1) from distributed renewable energy
5        generation devices or community renewable generation
6        projects; at least 47% from utility-scale solar
7        projects; at least 3% from brownfield site
8        photovoltaic projects that are not community renewable
9        generation projects.
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

 

 

HB3445 Enrolled- 22 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 23 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 24 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 25 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 26 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 27 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 28 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 29 -LRB103 29599 AMQ 55994 b

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.

 

 

HB3445 Enrolled- 30 -LRB103 29599 AMQ 55994 b

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.

 

 

HB3445 Enrolled- 31 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 32 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 33 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 34 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 35 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 36 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 37 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 38 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 39 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 50 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 51 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 52 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 53 -LRB103 29599 AMQ 55994 b

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;

 

 

HB3445 Enrolled- 54 -LRB103 29599 AMQ 55994 b

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 on at public school land
20        schools. The Agency may create subcategories within
21        this category to account for the differences between
22        project size or location. Projects located within
23        environmental justice communities or within
24        Organizational Units that fall within Tier 1 or Tier 2
25        shall be given priority. Each of the Agency's periodic
26        updates to its long-term renewable resources

 

 

HB3445 Enrolled- 55 -LRB103 29599 AMQ 55994 b

1        procurement plan to incorporate the procurement
2        described in this subparagraph (iv) shall also include
3        the proposed quantities or blocks, pricing, and
4        contract terms applicable to the procurement as
5        indicated herein. In each such update and procurement,
6        the Agency shall set the renewable energy credit price
7        and establish payment terms for the renewable energy
8        credits procured pursuant to this subparagraph (iv)
9        that make it feasible and affordable for public
10        schools to install photovoltaic distributed renewable
11        energy devices on their premises, including, but not
12        limited to, those public schools subject to the
13        prioritization provisions of this subparagraph. For
14        the purposes of 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 and includes public
23        institutions of higher education, as defined in the
24        Board of Higher Education Act.
25            (v) At least 5% from community-driven community
26        solar projects intended to provide more direct and

 

 

HB3445 Enrolled- 56 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 57 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 58 -LRB103 29599 AMQ 55994 b

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

 

 

HB3445 Enrolled- 59 -LRB103 29599 AMQ 55994 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        subsection (c) and subsection (k) of Section 16-108 of
2        the Public Utilities Act inclusive of eligible funds
3        collected in prior years and alternative compliance
4        payments for use by the utility, and contracts
5        executed under this Section shall expressly
6        incorporate this limitation.
7            (ix) Notwithstanding other requirements of this
8        subparagraph (L), no modification shall be required to
9        Adjustable Block program contracts if they were
10        already executed prior to the establishment, approval,
11        and implementation of new contract forms as a result
12        of this amendatory Act of the 102nd General Assembly.
13            (x) Contracts may be assignable, but only to
14        entities first deemed by the Agency to have met
15        program terms and requirements applicable to direct
16        program participation. In developing contracts for the
17        delivery of renewable energy credits, the Agency shall
18        be permitted to establish fees applicable to each
19        contract assignment.
20        (M) The Agency shall be authorized to retain one or
21    more experts or expert consulting firms to develop,
22    administer, implement, operate, and evaluate the
23    Adjustable Block program described in subparagraph (K) of
24    this paragraph (1), and the Agency shall retain the
25    consultant or consultants in the same manner, to the
26    extent practicable, as the Agency retains others to

 

 

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1    administer provisions of this Act, including, but not
2    limited to, the procurement administrator. The selection
3    of experts and expert consulting firms and the procurement
4    process described in this subparagraph (M) are exempt from
5    the requirements of Section 20-10 of the Illinois
6    Procurement Code, under Section 20-10 of that Code. The
7    Agency shall strive to minimize administrative expenses in
8    the implementation of the Adjustable Block program.
9        The Program Administrator may charge application fees
10    to participating firms to cover the cost of program
11    administration. Any application fee amounts shall
12    initially be determined through the long-term renewable
13    resources procurement plan, and modifications to any
14    application fee that deviate more than 25% from the
15    Commission's approved value must be approved by the
16    Commission as a long-term plan revision under Section
17    16-111.5 of the Public Utilities Act. The Agency shall
18    consider stakeholder feedback when making adjustments to
19    application fees and shall notify stakeholders in advance
20    of any planned changes.
21        In addition to covering the costs of program
22    administration, the Agency, in conjunction with its
23    Program Administrator, may also use the proceeds of such
24    fees charged to participating firms to support public
25    education and ongoing regional and national coordination
26    with nonprofit organizations, public bodies, and others

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        utility that serves less than 3,000,000 retail
2        customers but more than 500,000 retail customers in
3        the State and whose total highest 15-minute demand was
4        more than 10,000 kilowatts.
5            "Retail customer" has the meaning set forth in
6        Section 16-102 of the Public Utilities Act and
7        multiple retail customer accounts under the same
8        corporate parent may aggregate their account demands
9        to meet the 10,000 kilowatt threshold. The criteria
10        for determining whether this subparagraph is
11        applicable to a retail customer shall be based on the
12        12 consecutive billing periods prior to the start of
13        the year in which the application is filed.
14            (2) For renewable energy credits to count toward
15        the self-direct renewable portfolio standard
16        compliance program, they must:
17                (i) qualify as renewable energy credits as
18            defined in Section 1-10 of this Act;
19                (ii) be sourced from one or more renewable
20            energy generating facilities that comply with the
21            geographic requirements as set forth in
22            subparagraph (I) of paragraph (1) of subsection
23            (c) as interpreted through the Agency's long-term
24            renewable resources procurement plan, or, where
25            applicable, the geographic requirements that
26            governed utility-scale renewable energy credits at

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        the program, the self-direct customer will remain
2        eligible until the end of the term of the contract.
3        Thereafter, application may be made not less than 12
4        months before the filing date of the long-term
5        renewable resources procurement plan described in this
6        Act. At a minimum, such application shall contain the
7        following:
8                (i) the customer's certification that, at the
9            time of the customer's application, the customer
10            qualifies to be a self-direct eligible customer,
11            including documents demonstrating that
12            qualification;
13                (ii) the customer's certification that the
14            customer has entered into or will enter into by
15            the beginning of the applicable procurement year,
16            one or more bilateral contracts for new wind
17            projects or new photovoltaic projects, including
18            supporting documentation;
19                (iii) certification that the contract or
20            contracts for new renewable energy resources are
21            long-term contracts with term lengths of at least
22            10 years, including supporting documentation;
23                (iv) certification of the quantities of
24            renewable energy credits that the customer will
25            purchase each year under such contract or
26            contracts, including supporting documentation;

 

 

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1                (v) proof that the contract is sufficient to
2            produce renewable energy credits to be equivalent
3            in volume to at least 40% of the large energy
4            customer's usage from the previous delivery year,
5            measured to the nearest megawatt-hour; and
6                (vi) certification that the customer intends
7            to maintain the contract for the duration of the
8            length of the contract.
9            (6) If a customer receives the self-direct credit
10        but fails to properly procure and retire renewable
11        energy credits as required under this subparagraph
12        (R), the Commission, on petition from the Agency and
13        after notice and hearing, may direct such customer's
14        utility to recover the cost of the wrongfully received
15        self-direct credits plus interest through an adder to
16        charges assessed pursuant to Section 16-108 of the
17        Public Utilities Act. Self-direct customers who
18        knowingly fail to properly procure and retire
19        renewable energy credits and do not notify the Agency
20        are ineligible for continued participation in the
21        self-direct renewable portfolio standard compliance
22        program.
23        (2) (Blank).
24        (3) (Blank).
25        (4) The electric utility shall retire all renewable
26    energy credits used to comply with the standard.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    The second procurement event shall be conducted no sooner
2    than September 30, 2022 and no later than October 31, 2022
3    and shall be to select owners of electric generating
4    facilities located anywhere in this State that meet the
5    eligibility criteria specified in this subsection (c-5).
6    The Agency shall establish and announce a time period,
7    which shall begin no later than 30 days prior to the
8    scheduled date for the procurement event, during which
9    applicants may submit applications to be selected as
10    suppliers of renewable energy credits pursuant to this
11    subsection (c-5). The eligibility criteria for selection
12    as a supplier of renewable energy credits pursuant to this
13    subsection (c-5) shall be as follows:
14            (A) The applicant owns an electric generating
15        facility located in this State that: (i) as of January
16        1, 2016, burned coal as its primary fuel to generate
17        electricity; and (ii) has, or had prior to retirement,
18        an electric generating capacity of at least 150
19        megawatts. The electric generating facility can be
20        either: (i) retired as of the date of the procurement
21        event; or (ii) still operating as of the date of the
22        procurement event.
23            (B) The applicant is not (i) an electric
24        cooperative as defined in Section 3-119 of the Public
25        Utilities Act, or (ii) an entity described in
26        subsection (b)(1) of Section 3-105 of the Public

 

 

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

 

 

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1        least 0.5 megawatts and at most one megawatt.
2            (D) The applicant agrees that the new renewable
3        energy facility and the energy storage facility will
4        be constructed or installed by a qualified entity or
5        entities in compliance with the requirements of
6        subsection (g) of Section 16-128A of the Public
7        Utilities Act and any rules adopted thereunder.
8            (E) The applicant agrees that personnel operating
9        the new renewable energy facility and the energy
10        storage facility will have the requisite skills,
11        knowledge, training, experience, and competence, which
12        may be demonstrated by completion or current
13        participation and ultimate completion by employees of
14        an accredited or otherwise recognized apprenticeship
15        program for the employee's particular craft, trade, or
16        skill, including through training and education
17        courses and opportunities offered by the owner to
18        employees of the coal-fueled electric generating
19        facility or by previous employment experience
20        performing the employee's particular work skill or
21        function.
22            (F) The applicant commits that not less than the
23        prevailing wage, as determined pursuant to the
24        Prevailing Wage Act, will be paid to the applicant's
25        employees engaged in construction activities
26        associated with the new renewable energy facility and

 

 

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1        the new energy storage facility and to the employees
2        of applicant's contractors engaged in construction
3        activities associated with the new renewable energy
4        facility and the new energy storage facility, and
5        that, on or before the commercial operation date of
6        the new renewable energy facility, the applicant shall
7        file a report with the Agency certifying that the
8        requirements of this subparagraph (F) have been met.
9            (G) The applicant commits that if selected, it
10        will negotiate a project labor agreement for the
11        construction of the new renewable energy facility and
12        associated energy storage facility that includes
13        provisions requiring the parties to the agreement to
14        work together to establish diversity threshold
15        requirements and to ensure best efforts to meet
16        diversity targets, improve diversity at the applicable
17        job site, create diverse apprenticeship opportunities,
18        and create opportunities to employ former coal-fired
19        power plant workers.
20            (H) The applicant commits to enter into a contract
21        or contracts for the applicable duration to provide
22        specified numbers of renewable energy credits each
23        year from the new renewable energy facility to
24        electric utilities that served more than 300,000
25        retail customers in this State as of January 1, 2019,
26        at a price of $30 per renewable energy credit. The

 

 

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1        price per renewable energy credit shall be fixed at
2        $30 for the applicable duration and the renewable
3        energy credits shall not be indexed renewable energy
4        credits as provided for in item (v) of subparagraph
5        (G) of paragraph (1) of subsection (c) of Section 1-75
6        of this Act. The applicable duration of each contract
7        shall be 20 years, unless the applicant is physically
8        interconnected to the PJM Interconnection, LLC
9        transmission grid and had a generating capacity of at
10        least 1,200 megawatts as of January 1, 2021, in which
11        case the applicable duration of the contract shall be
12        15 years.
13            (I) The applicant's application is certified by an
14        officer of the applicant and by an officer of the
15        applicant's ultimate parent company, if any.
16        (3) An applicant may submit applications to contract
17    to supply renewable energy credits from more than one new
18    renewable energy facility to be constructed at or adjacent
19    to one or more qualifying electric generating facilities
20    owned by the applicant. The Agency may select new
21    renewable energy facilities to be located at or adjacent
22    to the sites of more than one qualifying electric
23    generation facility owned by an applicant to contract with
24    electric utilities to supply renewable energy credits from
25    such facilities.
26        (4) The Agency shall assess fees to each applicant to

 

 

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

 

 

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1    renewable energy credits each year contracted for as a
2    result of the first procurement event, for the applicable
3    durations. The number of renewable energy credits to be
4    procured as specified in this paragraph (5) shall not be
5    reduced based on renewable energy credits procured in the
6    self-direct renewable energy credit compliance program
7    established pursuant to subparagraph (R) of paragraph (1)
8    of subsection (c) of Section 1-75.
9        (6) The obligation to purchase renewable energy
10    credits from the applicants and their new renewable energy
11    facilities selected by the Agency shall be allocated to
12    the electric utilities based on their respective
13    percentages of kilowatthours delivered to delivery
14    services customers to the aggregate kilowatthour
15    deliveries by the electric utilities to delivery services
16    customers for the year ended December 31, 2021. In order
17    to achieve these allocation percentages between or among
18    the electric utilities, the Agency shall require each
19    applicant that is selected in the procurement event to
20    enter into a contract with each electric utility for the
21    sale and purchase of renewable energy credits from each
22    new renewable energy facility to be constructed and
23    operated by the applicant, with the sale and purchase
24    obligations under the contracts to aggregate to the total
25    number of renewable energy credits per year to be supplied
26    by the applicant from the new renewable energy facility.

 

 

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

 

 

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1    shall provide for a commercial operation date on June 1
2    next occurring up to 48 months after execution of the
3    contract. Each contract shall provide that the owner shall
4    receive payments for renewable energy credits for the
5    applicable durations beginning with the commercial
6    operation date of the new renewable energy facility. The
7    form contract shall provide for adjustments to the
8    commercial operation and payment start dates as needed due
9    to any delays in completing the procurement and
10    contracting processes, in finalizing interconnection
11    agreements and installing interconnection facilities, and
12    in obtaining other necessary governmental permits and
13    approvals. The form contract shall be, to the maximum
14    extent possible, consistent with standard electric
15    industry contracts for sale, delivery, and purchase of
16    renewable energy credits while taking into account the
17    specific requirements of this subsection (c-5). The form
18    contract shall provide for over-delivery and
19    under-delivery of renewable energy credits within
20    reasonable ranges during each 12-month period and penalty,
21    default, and enforcement provisions for failure of the
22    selling party to deliver renewable energy credits as
23    specified in the contract and to comply with the
24    requirements of this subsection (c-5). The standard form
25    contract shall specify that all renewable energy credits
26    delivered to the electric utility pursuant to the contract

 

 

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1    shall be retired. The Agency shall make the proposed
2    contracts available for a reasonable period for comment by
3    potential applicants, and shall publish the final form
4    contract at least 30 days before the date of the first
5    procurement event.
6        (9) Coal to Solar and Energy Storage Initiative
7    Charge.
8            (A) By no later than July 1, 2022, each electric
9        utility that served more than 300,000 retail customers
10        in this State as of January 1, 2019 shall file a tariff
11        with the Commission for the billing and collection of
12        a Coal to Solar and Energy Storage Initiative Charge
13        in accordance with subsection (i-5) of Section 16-108
14        of the Public Utilities Act, with such tariff to be
15        effective, following review and approval or
16        modification by the Commission, beginning January 1,
17        2023. The tariff shall provide for the calculation and
18        setting of the electric utility's Coal to Solar and
19        Energy Storage Initiative Charge to collect revenues
20        estimated to be sufficient, in the aggregate, (i) to
21        enable the electric utility to pay for the renewable
22        energy credits it has contracted to purchase in the
23        delivery year beginning June 1, 2023 and each delivery
24        year thereafter from new renewable energy facilities
25        located at the sites of qualifying electric generating
26        facilities, and (ii) to fund the grant payments to be

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            before the commercial operation date of the new
2            energy storage facility, the owner shall file a
3            report with the Department certifying that the
4            requirements of this subparagraph (11) have been
5            met; and
6                (12) the owner commits that if selected to
7            receive a grant, it will negotiate a project labor
8            agreement for the construction of the new energy
9            storage facility that includes provisions
10            requiring the parties to the agreement to work
11            together to establish diversity threshold
12            requirements and to ensure best efforts to meet
13            diversity targets, improve diversity at the
14            applicable job site, create diverse apprenticeship
15            opportunities, and create opportunities to employ
16            former coal-fired power plant workers.
17            The Department shall accept applications for this
18        grant program until March 31, 2022 and shall announce
19        the award of grants no later than June 1, 2022. The
20        Department shall make the grant payments to a
21        recipient in equal annual amounts for 10 years
22        following the date the energy storage facility is
23        placed into commercial operation. The annual grant
24        payments to a qualifying energy storage facility shall
25        be $110,000 per megawatt of energy storage capacity,
26        with total annual grant payments pursuant to this

 

 

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1        subparagraph (C) for qualifying energy storage
2        facilities not to exceed $28,050,000 in any year.
3            (D) Grants of funding for energy storage
4        facilities pursuant to subparagraph (C) of this
5        paragraph (10), from the Coal to Solar and Energy
6        Storage Initiative Fund, shall be memorialized in
7        grant contracts between the Department and the
8        recipient. The grant contracts shall specify the date
9        or dates in each year on which the annual grant
10        payments shall be paid.
11            (E) All disbursements from the Coal to Solar and
12        Energy Storage Initiative Fund shall be made only upon
13        warrants of the Comptroller drawn upon the Treasurer
14        as custodian of the Fund upon vouchers signed by the
15        Director of the Department or by the person or persons
16        designated by the Director of the Department for that
17        purpose. The Comptroller is authorized to draw the
18        warrants upon vouchers so signed. The Treasurer shall
19        accept all written warrants so signed and shall be
20        released from liability for all payments made on those
21        warrants.
22        (11) Diversity, equity, and inclusion plans.
23            (A) Each applicant selected in a procurement event
24        to contract to supply renewable energy credits in
25        accordance with this subsection (c-5) and each owner
26        selected by the Department to receive a grant or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    each utility's total supply to serve the load of eligible
2    retail customers in 2015 and each year thereafter, as
3    described in paragraph (3) of this subsection (d), subject
4    to the limits specified in paragraph (2) of this
5    subsection (d). It is the goal of the State that by January
6    1, 2025, 25% of the electricity used in the State shall be
7    generated by cost-effective clean coal facilities. For
8    purposes of this subsection (d), "cost-effective" means
9    that the expenditures pursuant to such sourcing agreements
10    do not cause the limit stated in paragraph (2) of this
11    subsection (d) to be exceeded and do not exceed cost-based
12    benchmarks, which shall be developed to assess all
13    expenditures pursuant to such sourcing agreements covering
14    electricity generated by clean coal facilities, other than
15    the initial clean coal facility, by the procurement
16    administrator, in consultation with the Commission staff,
17    Agency staff, and the procurement monitor and shall be
18    subject to Commission review and approval.
19        A utility party to a sourcing agreement shall
20    immediately retire any emission credits that it receives
21    in connection with the electricity covered by such
22    agreement.
23        Utilities shall maintain adequate records documenting
24    the purchases under the sourcing agreement to comply with
25    this subsection (d) and shall file an accounting with the
26    load forecast that must be filed with the Agency by July 15

 

 

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1    of each year, in accordance with subsection (d) of Section
2    16-111.5 of the Public Utilities Act.
3        A utility shall be deemed to have complied with the
4    clean coal portfolio standard specified in this subsection
5    (d) if the utility enters into a sourcing agreement as
6    required by this subsection (d).
7        (2) For purposes of this subsection (d), the required
8    execution of sourcing agreements with the initial clean
9    coal facility for a particular year shall be measured as a
10    percentage of the actual amount of electricity
11    (megawatt-hours) supplied by the electric utility to
12    eligible retail customers in the planning year ending
13    immediately prior to the agreement's execution. For
14    purposes of this subsection (d), the amount paid per
15    kilowatthour means the total amount paid for electric
16    service expressed on a per kilowatthour basis. For
17    purposes of this subsection (d), the total amount paid for
18    electric service includes without limitation amounts paid
19    for supply, transmission, distribution, surcharges and
20    add-on taxes.
21        Notwithstanding the requirements of this subsection
22    (d), the total amount paid under sourcing agreements with
23    clean coal facilities pursuant to the procurement plan for
24    any given year shall be reduced by an amount necessary to
25    limit the annual estimated average net increase due to the
26    costs of these resources included in the amounts paid by

 

 

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

 

 

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1        eligible retail customers in connection with electric
2        service to no more than the greater of (i) 2.015% of
3        the amount paid per kilowatthour by those customers
4        during the year ending May 31, 2009 or (ii) the
5        incremental amount per kilowatthour paid for these
6        resources in 2013. These requirements may be altered
7        only as provided by statute.
8        No later than June 30, 2015, the Commission shall
9    review the limitation on the total amount paid under
10    sourcing agreements, if any, with clean coal facilities
11    pursuant to this subsection (d) and report to the General
12    Assembly its findings as to whether that limitation unduly
13    constrains the amount of electricity generated by
14    cost-effective clean coal facilities that is covered by
15    sourcing agreements.
16        (3) Initial clean coal facility. In order to promote
17    development of clean coal facilities in Illinois, each
18    electric utility subject to this Section shall execute a
19    sourcing agreement to source electricity from a proposed
20    clean coal facility in Illinois (the "initial clean coal
21    facility") that will have a nameplate capacity of at least
22    500 MW when commercial operation commences, that has a
23    final Clean Air Act permit on June 1, 2009 (the effective
24    date of Public Act 95-1027), and that will meet the
25    definition of clean coal facility in Section 1-10 of this
26    Act when commercial operation commences. The sourcing

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            requirements and offset purchase requirements
2            specified in paragraph (3) of this subsection (d)
3            shall be reviewed annually by an independent
4            expert retained by the owner of the initial clean
5            coal facility, with the advance written approval
6            of the Attorney General. The Commission may, in
7            the course of the review specified in item (vii),
8            reduce the allowable return on equity for the
9            facility if the facility willfully fails to comply
10            with the carbon capture and sequestration
11            requirements set forth in this item (v);
12                (vi) include limits on, and accordingly
13            provide for modification of, the amount the
14            utility is required to source under the sourcing
15            agreement consistent with paragraph (2) of this
16            subsection (d);
17                (vii) require Commission review: (1) to
18            determine the justness, reasonableness, and
19            prudence of the inputs to the formula referenced
20            in subparagraphs (A)(i) through (A)(iii) of
21            paragraph (3) of this subsection (d), prior to an
22            adjustment in those inputs including, without
23            limitation, the capital structure and return on
24            equity, fuel costs, and other operations and
25            maintenance costs and (2) to approve the costs to
26            be passed through to customers under the sourcing

 

 

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1            agreement by which the utility satisfies its
2            statutory obligations. Commission review shall
3            occur no less than every 3 years, regardless of
4            whether any adjustments have been proposed, and
5            shall be completed within 9 months;
6                (viii) limit the utility's obligation to such
7            amount as the utility is allowed to recover
8            through tariffs filed with the Commission,
9            provided that neither the clean coal facility nor
10            the utility waives any right to assert federal
11            pre-emption or any other argument in response to a
12            purported disallowance of recovery costs;
13                (ix) limit the utility's or alternative retail
14            electric supplier's obligation to incur any
15            liability until such time as the facility is in
16            commercial operation and generating power and
17            energy and such power and energy is being
18            delivered to the facility busbar;
19                (x) provide that the owner or owners of the
20            initial clean coal facility, which is the
21            counterparty to such sourcing agreement, shall
22            have the right from time to time to elect whether
23            the obligations of the utility party thereto shall
24            be governed by the power purchase provisions or
25            the contract for differences provisions;
26                (xi) append documentation showing that the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Agency for the utility. The duration of the contracts
2    procured under this subsection (d-5) shall be for a term
3    of 10 years ending May 31, 2027. The quantity of zero
4    emission credits to be procured under the contracts shall
5    be all of the zero emission credits generated by the zero
6    emission facility in each delivery year; however, if the
7    zero emission facility is owned by more than one entity,
8    then the quantity of zero emission credits to be procured
9    under the contracts shall be the amount of zero emission
10    credits that are generated from the portion of the zero
11    emission facility that is owned by the winning supplier.
12        The 16% value identified in this paragraph (1) is the
13    average of the percentage targets in subparagraph (B) of
14    paragraph (1) of subsection (c) of this Section for the 5
15    delivery years beginning June 1, 2017.
16        The procurement process shall be subject to the
17    following provisions:
18            (A) Those zero emission facilities that intend to
19        participate in the procurement shall submit to the
20        Agency the following eligibility information for each
21        zero emission facility on or before the date
22        established by the Agency:
23                (i) the in-service date and remaining useful
24            life of the zero emission facility;
25                (ii) the amount of power generated annually
26            for each of the years 2005 through 2015, and the

 

 

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

 

 

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

 

 

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1        delivery year. The components of this calculation are
2        defined as follows:
3                (i) Social Cost of Carbon: The Social Cost of
4            Carbon is $16.50 per megawatthour, which is based
5            on the U.S. Interagency Working Group on Social
6            Cost of Carbon's price in the August 2016
7            Technical Update using a 3% discount rate,
8            adjusted for inflation for each year of the
9            program. Beginning with the delivery year
10            commencing June 1, 2023, the price per
11            megawatthour shall increase by $1 per
12            megawatthour, and continue to increase by an
13            additional $1 per megawatthour each delivery year
14            thereafter.
15                (ii) Baseline market price index: The baseline
16            market price index for the consecutive 12-month
17            period ending May 31, 2016 is $31.40 per
18            megawatthour, which is based on the sum of (aa)
19            the average day-ahead energy price across all
20            hours of such 12-month period at the PJM
21            Interconnection LLC Northern Illinois Hub, (bb)
22            50% multiplied by the Base Residual Auction, or
23            its successor, capacity price for the rest of the
24            RTO zone group determined by PJM Interconnection
25            LLC, divided by 24 hours per day, and (cc) 50%
26            multiplied by the Planning Resource Auction, or

 

 

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

 

 

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

 

 

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

 

 

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1        existing environmental benefits that are preserved by
2        the procurements held under Public Act 99-906 and
3        would cease to exist if the procurements were not
4        held, including the preservation of zero emission
5        facilities. The plan shall also describe in detail how
6        each public interest factor shall be considered and
7        weighted in the bid selection process to ensure that
8        the public interest criteria are applied to the
9        procurement and given full effect.
10            For purposes of developing the plan, the Agency
11        shall consider any reports issued by a State agency,
12        board, or commission under House Resolution 1146 of
13        the 98th General Assembly and paragraph (4) of
14        subsection (d) of this Section, as well as publicly
15        available analyses and studies performed by or for
16        regional transmission organizations that serve the
17        State and their independent market monitors.
18            Upon publishing of the zero emission standard
19        procurement plan, copies of the plan shall be posted
20        and made publicly available on the Agency's website.
21        All interested parties shall have 10 days following
22        the date of posting to provide comment to the Agency on
23        the plan. All comments shall be posted to the Agency's
24        website. Following the end of the comment period, but
25        no more than 60 days later than June 1, 2017 (the
26        effective date of Public Act 99-906), the Agency shall

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (C) of this paragraph (1) and, after notice and
2        hearing, enter an order acknowledging the contract
3        termination election if such termination is consistent
4        with the provisions of this subsection (d-5).
5        (2) For purposes of this subsection (d-5), the amount
6    paid per kilowatthour means the total amount paid for
7    electric service expressed on a per kilowatthour basis.
8    For purposes of this subsection (d-5), the total amount
9    paid for electric service includes, without limitation,
10    amounts paid for supply, transmission, distribution,
11    surcharges, and add-on taxes.
12        Notwithstanding the requirements of this subsection
13    (d-5), the contracts executed under this subsection (d-5)
14    shall provide that the total of zero emission credits
15    procured under a procurement plan shall be subject to the
16    limitations of this paragraph (2). For each delivery year,
17    the contractual volume receiving payments in such year
18    shall be reduced for all retail customers based on the
19    amount necessary to limit the net increase that delivery
20    year to the costs of those credits included in the amounts
21    paid by eligible retail customers in connection with
22    electric service to no more than 1.65% of the amount paid
23    per kilowatthour by eligible retail customers during the
24    year ending May 31, 2009. The result of this computation
25    shall apply to and reduce the procurement for all retail
26    customers, and all those customers shall pay the same

 

 

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1    single, uniform cents per kilowatthour charge under
2    subsection (k) of Section 16-108 of the Public Utilities
3    Act. To arrive at a maximum dollar amount of zero emission
4    credits to be paid for the particular delivery year, the
5    resulting per kilowatthour amount shall be applied to the
6    actual amount of kilowatthours of electricity delivered by
7    the electric utility in the delivery year immediately
8    prior to the procurement, to all retail customers in its
9    service territory. Unpaid contractual volume for any
10    delivery year shall be paid in any subsequent delivery
11    year in which such payments can be made without exceeding
12    the amount specified in this paragraph (2). The
13    calculations required by this paragraph (2) shall be made
14    only once for each procurement plan year. Once the
15    determination as to the amount of zero emission credits to
16    be paid is made based on the calculations set forth in this
17    paragraph (2), no subsequent rate impact determinations
18    shall be made and no adjustments to those contract amounts
19    shall be allowed. All costs incurred under those contracts
20    and in implementing this subsection (d-5) shall be
21    recovered by the electric utility as provided in this
22    Section.
23        No later than June 30, 2019, the Commission shall
24    review the limitation on the amount of zero emission
25    credits procured under this subsection (d-5) and report to
26    the General Assembly its findings as to whether that

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    information pursuant to Section 6.5 of the Attorney
2    General Act.
3        (C) The Agency shall solicit bids for the contracts
4    described in this subsection (d-10) from carbon-free
5    energy resources that have satisfied the requirements of
6    subparagraph (B) of this paragraph (3). The contracts
7    procured pursuant to a procurement event shall reflect,
8    and be subject to, the following terms, requirements, and
9    limitations:
10            (i) Contracts are for delivery of carbon
11        mitigation credits, and are not energy or capacity
12        sales contracts requiring physical delivery. Pursuant
13        to item (iii), contract payments shall fully deduct
14        the value of any monetized federal production tax
15        credits, credits issued pursuant to a federal clean
16        energy standard, and other federal credits if
17        applicable.
18            (ii) Contracts for carbon mitigation credits shall
19        commence with the delivery year beginning on June 1,
20        2022 and shall be for a term of 5 delivery years
21        concluding on May 31, 2027.
22            (iii) The price per carbon mitigation credit to be
23        paid under a contract for a given delivery year shall
24        be equal to an accepted bid price less the sum of:
25                (I) one of the following energy price indices,
26            selected by the bidder at the time of the bid for

 

 

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

 

 

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

 

 

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1        Illinois do not pay more for carbon mitigation credits
2        than the value such credits provide, and
3        notwithstanding the provisions of this subsection
4        (d-10), the Agency shall not accept bids for contracts
5        that exceed a customer protection cap equal to the
6        baseline costs of carbon-free energy resources.
7            The baseline costs for the applicable year shall
8        be the following:
9                (I) For the delivery year beginning June 1,
10            2022, the baseline costs shall be an amount equal
11            to $30.30 per megawatt-hour.
12                (II) For the delivery year beginning June 1,
13            2023, the baseline costs shall be an amount equal
14            to $32.50 per megawatt-hour.
15                (III) For the delivery year beginning June 1,
16            2024, the baseline costs shall be an amount equal
17            to $33.43 per megawatt-hour.
18                (IV) For the delivery year beginning June 1,
19            2025, the baseline costs shall be an amount equal
20            to $33.50 per megawatt-hour.
21                (V) For the delivery year beginning June 1,
22            2026, the baseline costs shall be an amount equal
23            to $34.50 per megawatt-hour.
24            An Environmental Protection Agency consultant
25        forecast, included in a report issued April 14, 2021,
26        projects that a carbon-free energy resource has the

 

 

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1        opportunity to earn on average approximately $30.28
2        per megawatt-hour, for the sale of energy and capacity
3        during the time period between 2022 and 2027.
4        Therefore, the sale of carbon mitigation credits
5        provides the opportunity to receive an additional
6        amount per megawatt-hour in addition to the projected
7        prices for energy and capacity.
8            Although actual energy and capacity prices may
9        vary from year-to-year, the General Assembly finds
10        that this customer protection cap will help ensure
11        that the cost of carbon mitigation credits will be
12        less than its value, based upon the social cost of
13        carbon identified in the Technical Support Document
14        issued in February 2021 by the U.S. Interagency
15        Working Group on Social Cost of Greenhouse Gases and
16        the PJM Interconnection, LLC carbon dioxide marginal
17        emission rate for 2020, and that a carbon-free energy
18        resource receiving payment for carbon mitigation
19        credits receives no more than necessary to keep those
20        units in operation.
21        (D) No later than 7 days after the effective date of
22    this amendatory Act of the 102nd General Assembly, the
23    Agency shall publish its proposed carbon mitigation credit
24    procurement plan. The Plan shall provide that winning bids
25    shall be selected by taking into consideration which
26    resources best match public interest criteria that

 

 

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1    include, but are not limited to, minimizing carbon dioxide
2    emissions that result from electricity consumed in
3    Illinois and minimizing sulfur dioxide, nitrogen oxide,
4    and particulate matter emissions that adversely affect the
5    citizens of this State. The selection of winning bids
6    shall also take into account the incremental environmental
7    benefits resulting from the procurement or procurements,
8    such as any existing environmental benefits that are
9    preserved by a procurement held under this subsection
10    (d-10) and would cease to exist if the procurement were
11    not held, including the preservation of carbon-free energy
12    resources. For those bidders having the same public
13    interest criteria score, the relative ranking of such
14    bidders shall be determined by price. The Plan shall
15    describe in detail how each public interest factor shall
16    be considered and weighted in the bid selection process to
17    ensure that the public interest criteria are applied to
18    the procurement. The Plan shall, to the extent practical
19    and permissible by federal law, ensure that successful
20    bidders make commercially reasonable efforts to apply for
21    federal tax credits, direct payments, or similar subsidy
22    programs that support carbon-free generation and for which
23    the successful bidder is eligible. Upon publishing of the
24    carbon mitigation credit procurement plan, copies of the
25    plan shall be posted and made publicly available on the
26    Agency's website. All interested parties shall have 7 days

 

 

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

 

 

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1        nitrogen oxide, and particulate matter emissions that
2        adversely affect the citizens of this State;
3            (ii) specifically address how the selection of
4        carbon-free energy resources takes into account the
5        incremental environmental benefits resulting from the
6        procurement, including any existing environmental
7        benefits that are preserved by the procurements held
8        under this amendatory Act of the 102nd General
9        Assembly and would have ceased to exist if the
10        procurements had not been held, such as the
11        preservation of carbon-free energy resources;
12            (iii) quantify the environmental benefit of
13        preserving the carbon-free energy resources procured
14        pursuant to this subsection (d-10), including the
15        following:
16                (I) an assessment value of avoided greenhouse
17            gas emissions measured as the product of the
18            carbon-free energy resources' output over the
19            contract term, using generally accepted
20            methodologies for the valuation of avoided
21            emissions; and
22                (II) an assessment of costs of replacement
23            with other carbon-free energy resources and
24            renewable energy resources, including wind and
25            photovoltaic generation, based upon an assessment
26            of the prices paid for renewable energy credits

 

 

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1            through programs and procurements conducted
2            pursuant to subsection (c) of Section 1-75 of this
3            Act, and the additional storage necessary to
4            produce the same or similar capability of matching
5            customer usage patterns.
6        (F) The procurements described in this paragraph (3),
7    including, but not limited to, the execution of all
8    contracts procured, shall be completed no later than
9    December 3, 2021. The procurement and plan approval
10    processes required by this paragraph (3) shall be
11    conducted in conjunction with the procurement and plan
12    approval processes required by Section 16-111.5 of the
13    Public Utilities Act, to the extent practicable. However,
14    the Agency and Commission may, as appropriate, modify the
15    various dates and timelines under this subparagraph and
16    subparagraphs (D) and (E) of this paragraph (3) to meet
17    the December 3, 2021 contract execution deadline.
18    Following the completion of such procurements, and
19    consistent with this paragraph (3), the Agency shall
20    calculate the payments to be made under each contract in a
21    timely fashion.
22        (F-1) Costs incurred by the electric utility pursuant
23    to a contract authorized by this subsection (d-10) shall
24    be deemed prudently incurred and reasonable in amount, and
25    the electric utility shall be entitled to full cost
26    recovery pursuant to a tariff or tariffs filed with the

 

 

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

 

 

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1as set forth in subsection (c), subsection (d), or subsection
2(d-5) of this Section, respectively. A renewable energy
3credit, carbon emission credit, zero emission credit, or
4carbon mitigation credit cannot be used to satisfy the
5requirements of more than one standard. If more than one type
6of credit is issued for the same megawatt hour of energy, only
7one credit can be used to satisfy the requirements of a single
8standard. After such use, the credit must be retired together
9with any other credits issued for the same megawatt hour of
10energy.
11(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
12102-662, eff. 9-15-21.)
 
13    (20 ILCS 3855/1-129 new)
14    Sec. 1-129. Policy study.
15    (a) The General Assembly finds that:
16        (1) in 2021, Illinois became the first state in the
17    Midwest to mandate a clean energy future when it enacted
18    the Climate and Equitable Jobs Act (Public Act 102-662);
19        (2) through the Climate and Equitable Jobs Act,
20    Illinois established a plan to completely decarbonize its
21    energy sector by 2050 in an equitable manner that invests
22    in the State's workforce;
23        (3) technology in the energy sector continues to
24    advance creating cleaner and more efficient options to
25    help the State attain the target of 50% renewable energy

 

 

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1    by 2040; and
2        (4) while numerous legislative proposals purport to
3    help the State on its path to equitably attain 100% clean
4    energy, it is important to have a neutral party with
5    relevant expertise evaluate each proposal to ensure it is
6    consistent with the State's goals and maximizes benefits
7    to Illinois residents.
8    (b) The General Assembly intends:
9        (1) to prioritize the public interest over the profit
10    motives of utilities and private developers; and
11        (2) to invest in projects that reduce harmful
12    emissions and contribute to the clean economy.
13    (c) The Agency shall commission and publish a policy study
14to evaluate the potential impacts of the proposals described
15in subsection (g). The potential impacts may include, but are
16not limited to, support for Illinois' decarbonization goals,
17the environment, grid reliability, carbon and other pollutant
18emissions, resource adequacy, long-term and short-term
19electric rates, environmental justice communities, jobs, and
20the economy. Where applicable, the study shall address the
21impact of a proposal with respect to reports by the
22Midcontinent Independent System Operator, PJM, and North
23American Electric Reliability Corporation staff that Illinois
24has begun to experience resource adequacy issues.
25    (d) The Agency shall retain the services of technical and
26policy experts with energy market and other relevant fields of

 

 

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1expertise. The technical and policy experts may include the
2existing planning and procurement consultant and applicable
3subcontractors and the procurement administrator and
4applicable subcontractors. The Illinois Commerce Commission,
5the Illinois Environmental Protection Agency, and the
6Department of Commerce and Economic Opportunity shall provide
7support to and consult with the Agency. The Agency may consult
8with other State agencies, commissions, or task forces as
9needed. The Agency may consult with and seek assistance from
10the Regional Transmission Organizations PJM and MISO.
11    (e) The Agency may solicit information, including
12confidential or proprietary information, from entities likely
13to be impacted by the proposals described in subsection (g)
14for purposes of this study. Any information designated as
15confidential or proprietary information by the entity
16providing the information shall be kept confidential by the
17Agency, its consultants, and its contractors and is not
18subject to disclosure under the Freedom of Information Act.
19    (f) The Agency shall publish a final policy study no later
20than March 1, 2024 and suitable copies shall be delivered to
21the Governor and members of the General Assembly. Prior to
22publishing the final policy study, the Agency shall publish a
23preliminary draft of the policy study and provide for a 20-day
24open public comment period. The Agency shall review public
25comments and publish a final policy study no later than 20 days
26after the public comment period ends. The policy study shall

 

 

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1include policy recommendations to the General Assembly.
2    (g) The policy study shall evaluate the following
3proposals and may consider or suggest additional or
4alternative items:
5        (1) House Bill 2132 of the 103rd General Assembly as
6    it passed out of the House on March 24, 2023 or a similar
7    pilot program to establish one new utility-scale offshore
8    wind project capable of producing at least 700,000
9    megawatt hours annually for at least 20 years in Lake
10    Michigan that includes an equity and inclusion plan to
11    create job opportunities for underrepresented populations
12    in addition to equity investment eligible communities and
13    a fully executed project labor agreement. The pilot
14    program may result in an increase in the amounts paid by
15    eligible retail customers in connection with electric
16    service that shall not exceed 0.25% of the amount paid per
17    kilowatt hour by those customers during the year ending
18    May 31, 2009.
19        (2) Senate Bill 1587 and amendments to Senate Bill
20    1587 of the 103rd General Assembly filed prior to May 31,
21    2023 or a similar proposal for the deployment of energy
22    storage systems supported by the State through the
23    development of energy storage credit targets for the
24    Agency to procure on behalf of Illinois electric utilities
25    from privately owned, large scale energy storage providers
26    using energy storage contracts of at least 15 year

 

 

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1    durations based on a competitive energy storage
2    procurement plan developed by the Agency designed to
3    enhance overall grid reliability, flexibility and
4    efficiency, and to lower electricity prices. The plan must
5    require participants to comply with the equity
6    accountability system requirements in subsection (c-10) of
7    Section 1-75 and to submit proof of project labor
8    agreements. For purposes of this policy study, it should
9    be assumed that the costs associated with procuring energy
10    storage credits shall be recovered through tariffed
11    charges assessed across all retail customers in a uniform
12    cents per kilowatt hour charge. In addition to large scale
13    energy storage, the proposal shall also include the
14    creation of distributed level energy storage programs
15    through utility tariffs as approved by the Illinois
16    Commerce Commission. The programs shall include a
17    residential and a commercial storage program that would
18    allow customer-sited batteries to provide grid benefits
19    and cost-savings to ratepayers. The proposal shall also
20    include a community solar energy storage program intended
21    to serve as a peak reduction program by utilizing
22    community solar paired storage projects deployed daily in
23    summer months during peak hours. The installation of the
24    energy storage systems associated with these distributed
25    renewable systems must comply with the prevailing wage
26    requirements described in subparagraph (Q) of paragraph

 

 

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1    (1) of subsection (c) of Section 1-75. The policy study
2    shall include a review of the ability of coal-fueled
3    generating plant sites located in Illinois that have been
4    closed since 2016 or are scheduled to be closed by 2030 to
5    support the installation of energy storage systems and
6    potential associated interconnection costs. This review
7    shall include: (i) whether those sites are already in a
8    regional transmission organization interconnection queue,
9    including MISO's replacement power interconnection queue,
10    or would be submitted to the replacement power
11    interconnection queue no later than September 1, 2023,
12    and, if a site is in a queue, the site's position in the
13    queue; and (ii) how soon those sites could support
14    development and installation of energy storage systems and
15    any barriers to that development. This review shall also
16    include consultation with electric generation facility
17    owners or operators and renewable developers that own or
18