Sen. Steve Stadelman

Filed: 5/24/2023

 

 


 

 


 
10300HB3445sam003LRB103 29599 LNS 62504 a

1
AMENDMENT TO HOUSE BILL 3445

2    AMENDMENT NO. ______. Amend House Bill 3445, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Freedom of Information Act is amended by
6changing Section 7.5 as follows:
 
7    (5 ILCS 140/7.5)
8    Sec. 7.5. Statutory exemptions. To the extent provided for
9by the statutes referenced below, the following shall be
10exempt from inspection and copying:
11        (a) All information determined to be confidential
12    under Section 4002 of the Technology Advancement and
13    Development Act.
14        (b) Library circulation and order records identifying
15    library users with specific materials under the Library
16    Records Confidentiality Act.

 

 

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1        (c) Applications, related documents, and medical
2    records received by the Experimental Organ Transplantation
3    Procedures Board and any and all documents or other
4    records prepared by the Experimental Organ Transplantation
5    Procedures Board or its staff relating to applications it
6    has received.
7        (d) Information and records held by the Department of
8    Public Health and its authorized representatives relating
9    to known or suspected cases of sexually transmissible
10    disease or any information the disclosure of which is
11    restricted under the Illinois Sexually Transmissible
12    Disease Control Act.
13        (e) Information the disclosure of which is exempted
14    under Section 30 of the Radon Industry Licensing Act.
15        (f) Firm performance evaluations under Section 55 of
16    the Architectural, Engineering, and Land Surveying
17    Qualifications Based Selection Act.
18        (g) Information the disclosure of which is restricted
19    and exempted under Section 50 of the Illinois Prepaid
20    Tuition Act.
21        (h) Information the disclosure of which is exempted
22    under the State Officials and Employees Ethics Act, and
23    records of any lawfully created State or local inspector
24    general's office that would be exempt if created or
25    obtained by an Executive Inspector General's office under
26    that Act.

 

 

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1        (i) Information contained in a local emergency energy
2    plan submitted to a municipality in accordance with a
3    local emergency energy plan ordinance that is adopted
4    under Section 11-21.5-5 of the Illinois Municipal Code.
5        (j) Information and data concerning the distribution
6    of surcharge moneys collected and remitted by carriers
7    under the Emergency Telephone System Act.
8        (k) Law enforcement officer identification information
9    or driver identification information compiled by a law
10    enforcement agency or the Department of Transportation
11    under Section 11-212 of the Illinois Vehicle Code.
12        (l) Records and information provided to a residential
13    health care facility resident sexual assault and death
14    review team or the Executive Council under the Abuse
15    Prevention Review Team Act.
16        (m) Information provided to the predatory lending
17    database created pursuant to Article 3 of the Residential
18    Real Property Disclosure Act, except to the extent
19    authorized under that Article.
20        (n) Defense budgets and petitions for certification of
21    compensation and expenses for court appointed trial
22    counsel as provided under Sections 10 and 15 of the
23    Capital Crimes Litigation Act. This subsection (n) shall
24    apply until the conclusion of the trial of the case, even
25    if the prosecution chooses not to pursue the death penalty
26    prior to trial or sentencing.

 

 

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1        (o) Information that is prohibited from being
2    disclosed under Section 4 of the Illinois Health and
3    Hazardous Substances Registry Act.
4        (p) Security portions of system safety program plans,
5    investigation reports, surveys, schedules, lists, data, or
6    information compiled, collected, or prepared by or for the
7    Department of Transportation under Sections 2705-300 and
8    2705-616 of the Department of Transportation Law of the
9    Civil Administrative Code of Illinois, the Regional
10    Transportation Authority under Section 2.11 of the
11    Regional Transportation Authority Act, or the St. Clair
12    County Transit District under the Bi-State Transit Safety
13    Act.
14        (q) Information prohibited from being disclosed by the
15    Personnel Record Review Act.
16        (r) Information prohibited from being disclosed by the
17    Illinois School Student Records Act.
18        (s) Information the disclosure of which is restricted
19    under Section 5-108 of the Public Utilities Act.
20        (t) All identified or deidentified health information
21    in the form of health data or medical records contained
22    in, stored in, submitted to, transferred by, or released
23    from the Illinois Health Information Exchange, and
24    identified or deidentified health information in the form
25    of health data and medical records of the Illinois Health
26    Information Exchange in the possession of the Illinois

 

 

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1    Health Information Exchange Office due to its
2    administration of the Illinois Health Information
3    Exchange. The terms "identified" and "deidentified" shall
4    be given the same meaning as in the Health Insurance
5    Portability and Accountability Act of 1996, Public Law
6    104-191, or any subsequent amendments thereto, and any
7    regulations promulgated thereunder.
8        (u) Records and information provided to an independent
9    team of experts under the Developmental Disability and
10    Mental Health Safety Act (also known as Brian's Law).
11        (v) Names and information of people who have applied
12    for or received Firearm Owner's Identification Cards under
13    the Firearm Owners Identification Card Act or applied for
14    or received a concealed carry license under the Firearm
15    Concealed Carry Act, unless otherwise authorized by the
16    Firearm Concealed Carry Act; and databases under the
17    Firearm Concealed Carry Act, records of the Concealed
18    Carry Licensing Review Board under the Firearm Concealed
19    Carry Act, and law enforcement agency objections under the
20    Firearm Concealed Carry Act.
21        (v-5) Records of the Firearm Owner's Identification
22    Card Review Board that are exempted from disclosure under
23    Section 10 of the Firearm Owners Identification Card Act.
24        (w) Personally identifiable information which is
25    exempted from disclosure under subsection (g) of Section
26    19.1 of the Toll Highway Act.

 

 

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1        (x) Information which is exempted from disclosure
2    under Section 5-1014.3 of the Counties Code or Section
3    8-11-21 of the Illinois Municipal Code.
4        (y) Confidential information under the Adult
5    Protective Services Act and its predecessor enabling
6    statute, the Elder Abuse and Neglect Act, including
7    information about the identity and administrative finding
8    against any caregiver of a verified and substantiated
9    decision of abuse, neglect, or financial exploitation of
10    an eligible adult maintained in the Registry established
11    under Section 7.5 of the Adult Protective Services Act.
12        (z) Records and information provided to a fatality
13    review team or the Illinois Fatality Review Team Advisory
14    Council under Section 15 of the Adult Protective Services
15    Act.
16        (aa) Information which is exempted from disclosure
17    under Section 2.37 of the Wildlife Code.
18        (bb) Information which is or was prohibited from
19    disclosure by the Juvenile Court Act of 1987.
20        (cc) Recordings made under the Law Enforcement
21    Officer-Worn Body Camera Act, except to the extent
22    authorized under that Act.
23        (dd) Information that is prohibited from being
24    disclosed under Section 45 of the Condominium and Common
25    Interest Community Ombudsperson Act.
26        (ee) Information that is exempted from disclosure

 

 

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1    under Section 30.1 of the Pharmacy Practice Act.
2        (ff) Information that is exempted from disclosure
3    under the Revised Uniform Unclaimed Property Act.
4        (gg) Information that is prohibited from being
5    disclosed under Section 7-603.5 of the Illinois Vehicle
6    Code.
7        (hh) Records that are exempt from disclosure under
8    Section 1A-16.7 of the Election Code.
9        (ii) Information which is exempted from disclosure
10    under Section 2505-800 of the Department of Revenue Law of
11    the Civil Administrative Code of Illinois.
12        (jj) Information and reports that are required to be
13    submitted to the Department of Labor by registering day
14    and temporary labor service agencies but are exempt from
15    disclosure under subsection (a-1) of Section 45 of the Day
16    and Temporary Labor Services Act.
17        (kk) Information prohibited from disclosure under the
18    Seizure and Forfeiture Reporting Act.
19        (ll) Information the disclosure of which is restricted
20    and exempted under Section 5-30.8 of the Illinois Public
21    Aid Code.
22        (mm) Records that are exempt from disclosure under
23    Section 4.2 of the Crime Victims Compensation Act.
24        (nn) Information that is exempt from disclosure under
25    Section 70 of the Higher Education Student Assistance Act.
26        (oo) Communications, notes, records, and reports

 

 

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1    arising out of a peer support counseling session
2    prohibited from disclosure under the First Responders
3    Suicide Prevention Act.
4        (pp) Names and all identifying information relating to
5    an employee of an emergency services provider or law
6    enforcement agency under the First Responders Suicide
7    Prevention Act.
8        (qq) Information and records held by the Department of
9    Public Health and its authorized representatives collected
10    under the Reproductive Health Act.
11        (rr) Information that is exempt from disclosure under
12    the Cannabis Regulation and Tax Act.
13        (ss) Data reported by an employer to the Department of
14    Human Rights pursuant to Section 2-108 of the Illinois
15    Human Rights Act.
16        (tt) Recordings made under the Children's Advocacy
17    Center Act, except to the extent authorized under that
18    Act.
19        (uu) Information that is exempt from disclosure under
20    Section 50 of the Sexual Assault Evidence Submission Act.
21        (vv) Information that is exempt from disclosure under
22    subsections (f) and (j) of Section 5-36 of the Illinois
23    Public Aid Code.
24        (ww) Information that is exempt from disclosure under
25    Section 16.8 of the State Treasurer Act.
26        (xx) Information that is exempt from disclosure or

 

 

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1    information that shall not be made public under the
2    Illinois Insurance Code.
3        (yy) Information prohibited from being disclosed under
4    the Illinois Educational Labor Relations Act.
5        (zz) Information prohibited from being disclosed under
6    the Illinois Public Labor Relations Act.
7        (aaa) Information prohibited from being disclosed
8    under Section 1-167 of the Illinois Pension Code.
9        (bbb) Information that is prohibited from disclosure
10    by the Illinois Police Training Act and the Illinois State
11    Police Act.
12        (ccc) Records exempt from disclosure under Section
13    2605-304 of the Illinois State Police Law of the Civil
14    Administrative Code of Illinois.
15        (ddd) Information prohibited from being disclosed
16    under Section 35 of the Address Confidentiality for
17    Victims of Domestic Violence, Sexual Assault, Human
18    Trafficking, or Stalking Act.
19        (eee) Information prohibited from being disclosed
20    under subsection (b) of Section 75 of the Domestic
21    Violence Fatality Review Act.
22        (fff) Images from cameras under the Expressway Camera
23    Act. This subsection (fff) is inoperative on and after
24    July 1, 2023.
25        (ggg) Information prohibited from disclosure under
26    paragraph (3) of subsection (a) of Section 14 of the Nurse

 

 

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1    Agency Licensing Act.
2        (hhh) Information submitted to the Illinois Department
3    of State Police in an affidavit or application for an
4    assault weapon endorsement, assault weapon attachment
5    endorsement, .50 caliber rifle endorsement, or .50 caliber
6    cartridge endorsement under the Firearm Owners
7    Identification Card Act.
8        (iii) Information prohibited from being disclosed
9    under subsection (e) of Section 1-129 of the Illinois
10    Power Agency Act.
11(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
12101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
131-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
14eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
15101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
161-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
17eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
18102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
197-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
202-13-23.)"; and
 
21    Section 10. The Illinois Power Agency Act is amended by
22changing Section 1-75 and adding Section 1-129 as follows:
 
23    (20 ILCS 3855/1-75)
24    Sec. 1-75. Planning and Procurement Bureau. The Planning

 

 

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1and Procurement Bureau has the following duties and
2responsibilities:
3    (a) The Planning and Procurement Bureau shall each year,
4beginning in 2008, develop procurement plans and conduct
5competitive procurement processes in accordance with the
6requirements of Section 16-111.5 of the Public Utilities Act
7for the eligible retail customers of electric utilities that
8on December 31, 2005 provided electric service to at least
9100,000 customers in Illinois. Beginning with the delivery
10year commencing on June 1, 2017, the Planning and Procurement
11Bureau shall develop plans and processes for the procurement
12of zero emission credits from zero emission facilities in
13accordance with the requirements of subsection (d-5) of this
14Section. Beginning on the effective date of this amendatory
15Act of the 102nd General Assembly, the Planning and
16Procurement Bureau shall develop plans and processes for the
17procurement of carbon mitigation credits from carbon-free
18energy resources in accordance with the requirements of
19subsection (d-10) of this Section. The Planning and
20Procurement Bureau shall also develop procurement plans and
21conduct competitive procurement processes in accordance with
22the requirements of Section 16-111.5 of the Public Utilities
23Act for the eligible retail customers of small
24multi-jurisdictional electric utilities that (i) on December
2531, 2005 served less than 100,000 customers in Illinois and
26(ii) request a procurement plan for their Illinois

 

 

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1jurisdictional load. This Section shall not apply to a small
2multi-jurisdictional utility until such time as a small
3multi-jurisdictional utility requests the Agency to prepare a
4procurement plan for their Illinois jurisdictional load. For
5the purposes of this Section, the term "eligible retail
6customers" has the same definition as found in Section
716-111.5(a) of the Public Utilities Act.
8    Beginning with the plan or plans to be implemented in the
92017 delivery year, the Agency shall no longer include the
10procurement of renewable energy resources in the annual
11procurement plans required by this subsection (a), except as
12provided in subsection (q) of Section 16-111.5 of the Public
13Utilities Act, and shall instead develop a long-term renewable
14resources procurement plan in accordance with subsection (c)
15of this Section and Section 16-111.5 of the Public Utilities
16Act.
17    In accordance with subsection (c-5) of this Section, the
18Planning and Procurement Bureau shall oversee the procurement
19by electric utilities that served more than 300,000 retail
20customers in this State as of January 1, 2019 of renewable
21energy credits from new utility-scale solar projects to be
22installed, along with energy storage facilities, at or
23adjacent to the sites of electric generating facilities that,
24as of January 1, 2016, burned coal as their primary fuel
25source.
26        (1) The Agency shall each year, beginning in 2008, as

 

 

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

 

 

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

 

 

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1    also provide each qualified expert's or expert consulting
2    firm's response to the request for qualifications. All
3    information provided under this subparagraph shall also be
4    provided to the Commission. The Agency may provide by rule
5    for fees associated with supplying the information to
6    utilities and other interested parties. These parties
7    shall, within 5 business days, notify the Agency in
8    writing if they object to any experts or expert consulting
9    firms on the lists. Objections shall be based on:
10            (A) failure to satisfy qualification criteria;
11            (B) identification of a conflict of interest; or
12            (C) evidence of inappropriate bias for or against
13        potential bidders or the affected utilities.
14        The Agency shall remove experts or expert consulting
15    firms from the lists within 10 days if there is a
16    reasonable basis for an objection and provide the updated
17    lists to the affected utilities and other interested
18    parties. If the Agency fails to remove an expert or expert
19    consulting firm from a list, an objecting party may seek
20    review by the Commission within 5 days thereafter by
21    filing a petition, and the Commission shall render a
22    ruling on the petition within 10 days. There is no right of
23    appeal of the Commission's ruling.
24        (4) The Agency shall issue requests for proposals to
25    the qualified experts or expert consulting firms to
26    develop a procurement plan for the affected utilities and

 

 

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1    to serve as procurement administrator.
2        (5) The Agency shall select an expert or expert
3    consulting firm to develop procurement plans based on the
4    proposals submitted and shall award contracts of up to 5
5    years to those selected.
6        (6) The Agency shall select an expert or expert
7    consulting firm, with approval of the Commission, to serve
8    as procurement administrator based on the proposals
9    submitted. If the Commission rejects, within 5 days, the
10    Agency's selection, the Agency shall submit another
11    recommendation within 3 days based on the proposals
12    submitted. The Agency shall award a 5-year contract to the
13    expert or expert consulting firm so selected with
14    Commission approval.
15    (b) The experts or expert consulting firms retained by the
16Agency shall, as appropriate, prepare procurement plans, and
17conduct a competitive procurement process as prescribed in
18Section 16-111.5 of the Public Utilities Act, to ensure
19adequate, reliable, affordable, efficient, and environmentally
20sustainable electric service at the lowest total cost over
21time, taking into account any benefits of price stability, for
22eligible retail customers of electric utilities that on
23December 31, 2005 provided electric service to at least
24100,000 customers in the State of Illinois, and for eligible
25Illinois retail customers of small multi-jurisdictional
26electric utilities that (i) on December 31, 2005 served less

 

 

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1than 100,000 customers in Illinois and (ii) request a
2procurement plan for their Illinois jurisdictional load.
3    (c) Renewable portfolio standard.
4        (1)(A) The Agency shall develop a long-term renewable
5    resources procurement plan that shall include procurement
6    programs and competitive procurement events necessary to
7    meet the goals set forth in this subsection (c). The
8    initial long-term renewable resources procurement plan
9    shall be released for comment no later than 160 days after
10    June 1, 2017 (the effective date of Public Act 99-906).
11    The Agency shall review, and may revise on an expedited
12    basis, the long-term renewable resources procurement plan
13    at least every 2 years, which shall be conducted in
14    conjunction with the procurement plan under Section
15    16-111.5 of the Public Utilities Act to the extent
16    practicable to minimize administrative expense. No later
17    than 120 days after the effective date of this amendatory
18    Act of the 102nd General Assembly, the Agency shall
19    release for comment a revision to the long-term renewable
20    resources procurement plan, updating elements of the most
21    recently approved plan as needed to comply with this
22    amendatory Act of the 102nd General Assembly, and any
23    long-term renewable resources procurement plan update
24    published by the Agency but not yet approved by the
25    Illinois Commerce Commission shall be withdrawn. The
26    long-term renewable resources procurement plans shall be

 

 

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

 

 

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1    procuring renewable energy credits that are unlikely to
2    lead to the development of new renewable resources.
3        For the delivery year beginning June 1, 2017, the
4    procurement plan shall attempt to include, subject to the
5    prioritization outlined in this subparagraph (B),
6    cost-effective renewable energy resources equal to at
7    least 13% of each utility's load for eligible retail
8    customers and 13% of the applicable portion of each
9    utility's load for retail customers who are not eligible
10    retail customers, which applicable portion shall equal 50%
11    of the utility's load for retail customers who are not
12    eligible retail customers on February 28, 2017.
13        For the delivery year beginning June 1, 2018, the
14    procurement plan shall attempt to include, subject to the
15    prioritization outlined in this subparagraph (B),
16    cost-effective renewable energy resources equal to at
17    least 14.5% of each utility's load for eligible retail
18    customers and 14.5% of the applicable portion of each
19    utility's load for retail customers who are not eligible
20    retail customers, which applicable portion shall equal 75%
21    of the utility's load for retail customers who are not
22    eligible retail customers on February 28, 2017.
23        For the delivery year beginning June 1, 2019, and for
24    each year thereafter, the procurement plans shall attempt
25    to include, subject to the prioritization outlined in this
26    subparagraph (B), cost-effective renewable energy

 

 

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1    resources equal to a minimum percentage of each utility's
2    load for all retail customers as follows: 16% by June 1,
3    2019; increasing by 1.5% each year thereafter to 25% by
4    June 1, 2025; and 25% by June 1, 2026; increasing by at
5    least 3% each delivery year thereafter to at least 40% by
6    the 2030 delivery year, and continuing at no less than 40%
7    for each delivery year thereafter. The Agency shall
8    attempt to procure 50% by delivery year 2040. The Agency
9    shall determine the annual increase between delivery year
10    2030 and delivery year 2040, if any, taking into account
11    energy demand, other energy resources, and other public
12    policy goals.
13        For each delivery year, the Agency shall first
14    recognize each utility's obligations for that delivery
15    year under existing contracts. Any renewable energy
16    credits under existing contracts, including renewable
17    energy credits as part of renewable energy resources,
18    shall be used to meet the goals set forth in this
19    subsection (c) for the delivery year.
20        (C) The long-term renewable resources procurement plan
21    described in subparagraph (A) of this paragraph (1) shall
22    include the procurement of renewable energy credits from
23    new projects in amounts equal to at least the following:
24            (i) 10,000,000 renewable energy credits delivered
25        annually by the end of the 2021 delivery year, and
26        increasing ratably to reach 45,000,000 renewable

 

 

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1        energy credits delivered annually from new wind and
2        solar projects by the end of delivery year 2030 such
3        that the goals in subparagraph (B) of this paragraph
4        (1) are met entirely by procurements of renewable
5        energy credits from new wind and photovoltaic
6        projects. Of that amount, to the extent possible, the
7        Agency shall procure 45% from wind projects and 55%
8        from photovoltaic projects. Of the amount to be
9        procured from photovoltaic projects, the Agency shall
10        procure: at least 50% from solar photovoltaic projects
11        using the program outlined in subparagraph (K) of this
12        paragraph (1) from distributed renewable energy
13        generation devices or community renewable generation
14        projects; at least 47% from utility-scale solar
15        projects; at least 3% from brownfield site
16        photovoltaic projects that are not community renewable
17        generation projects.
18            In developing the long-term renewable resources
19        procurement plan, the Agency shall consider other
20        approaches, in addition to competitive procurements,
21        that can be used to procure renewable energy credits
22        from brownfield site photovoltaic projects and thereby
23        help return blighted or contaminated land to
24        productive use while enhancing public health and the
25        well-being of Illinois residents, including those in
26        environmental justice communities, as defined using

 

 

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1        existing methodologies and findings used by the Agency
2        and its Administrator in its Illinois Solar for All
3        Program.
4            (ii) In any given delivery year, if forecasted
5        expenses are less than the maximum budget available
6        under subparagraph (E) of this paragraph (1), the
7        Agency shall continue to procure new renewable energy
8        credits until that budget is exhausted in the manner
9        outlined in item (i) of this subparagraph (C).
10            (iii) For purposes of this Section:
11            "New wind projects" means wind renewable energy
12        facilities that are energized after June 1, 2017 for
13        the delivery year commencing June 1, 2017.
14            "New photovoltaic projects" means photovoltaic
15        renewable energy facilities that are energized after
16        June 1, 2017. Photovoltaic projects developed under
17        Section 1-56 of this Act shall not apply towards the
18        new photovoltaic project requirements in this
19        subparagraph (C).
20            For purposes of calculating whether the Agency has
21        procured enough new wind and solar renewable energy
22        credits required by this subparagraph (C), renewable
23        energy facilities that have a multi-year renewable
24        energy credit delivery contract with the utility
25        through at least delivery year 2030 shall be
26        considered new, however no renewable energy credits

 

 

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1        from contracts entered into before June 1, 2021 shall
2        be used to calculate whether the Agency has procured
3        the correct proportion of new wind and new solar
4        contracts described in this subparagraph (C) for
5        delivery year 2021 and thereafter.
6        (D) Renewable energy credits shall be cost effective.
7    For purposes of this subsection (c), "cost effective"
8    means that the costs of procuring renewable energy
9    resources do not cause the limit stated in subparagraph
10    (E) of this paragraph (1) to be exceeded and, for
11    renewable energy credits procured through a competitive
12    procurement event, do not exceed benchmarks based on
13    market prices for like products in the region. For
14    purposes of this subsection (c), "like products" means
15    contracts for renewable energy credits from the same or
16    substantially similar technology, same or substantially
17    similar vintage (new or existing), the same or
18    substantially similar quantity, and the same or
19    substantially similar contract length and structure.
20    Benchmarks shall reflect development, financing, or
21    related costs resulting from requirements imposed through
22    other provisions of State law, including, but not limited
23    to, requirements in subparagraphs (P) and (Q) of this
24    paragraph (1) and the Renewable Energy Facilities
25    Agricultural Impact Mitigation Act. Confidential
26    benchmarks shall be developed by the procurement

 

 

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1    administrator, in consultation with the Commission staff,
2    Agency staff, and the procurement monitor and shall be
3    subject to Commission review and approval. If price
4    benchmarks for like products in the region are not
5    available, the procurement administrator shall establish
6    price benchmarks based on publicly available data on
7    regional technology costs and expected current and future
8    regional energy prices. The benchmarks in this Section
9    shall not be used to curtail or otherwise reduce
10    contractual obligations entered into by or through the
11    Agency prior to June 1, 2017 (the effective date of Public
12    Act 99-906).
13        (E) For purposes of this subsection (c), the required
14    procurement of cost-effective renewable energy resources
15    for a particular year commencing prior to June 1, 2017
16    shall be measured as a percentage of the actual amount of
17    electricity (megawatt-hours) supplied by the electric
18    utility to eligible retail customers in the delivery year
19    ending immediately prior to the procurement, and, for
20    delivery years commencing on and after June 1, 2017, the
21    required procurement of cost-effective renewable energy
22    resources for a particular year shall be measured as a
23    percentage of the actual amount of electricity
24    (megawatt-hours) delivered by the electric utility in the
25    delivery year ending immediately prior to the procurement,
26    to all retail customers in its service territory. For

 

 

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1    purposes of this subsection (c), the amount paid per
2    kilowatthour means the total amount paid for electric
3    service expressed on a per kilowatthour basis. For
4    purposes of this subsection (c), the total amount paid for
5    electric service includes without limitation amounts paid
6    for supply, transmission, capacity, distribution,
7    surcharges, and add-on taxes.
8        Notwithstanding the requirements of this subsection
9    (c), the total of renewable energy resources procured
10    under the procurement plan for any single year shall be
11    subject to the limitations of this subparagraph (E). Such
12    procurement shall be reduced for all retail customers
13    based on the amount necessary to limit the annual
14    estimated average net increase due to the costs of these
15    resources included in the amounts paid by eligible retail
16    customers in connection with electric service to no more
17    than 4.25% of the amount paid per kilowatthour by those
18    customers during the year ending May 31, 2009. To arrive
19    at a maximum dollar amount of renewable energy resources
20    to be procured for the particular delivery year, the
21    resulting per kilowatthour amount shall be applied to the
22    actual amount of kilowatthours of electricity delivered,
23    or applicable portion of such amount as specified in
24    paragraph (1) of this subsection (c), as applicable, by
25    the electric utility in the delivery year immediately
26    prior to the procurement to all retail customers in its

 

 

10300HB3445sam003- 26 -LRB103 29599 LNS 62504 a

1    service territory. The calculations required by this
2    subparagraph (E) shall be made only once for each delivery
3    year at the time that the renewable energy resources are
4    procured. Once the determination as to the amount of
5    renewable energy resources to procure is made based on the
6    calculations set forth in this subparagraph (E) and the
7    contracts procuring those amounts are executed, no
8    subsequent rate impact determinations shall be made and no
9    adjustments to those contract amounts shall be allowed.
10    All costs incurred under such contracts shall be fully
11    recoverable by the electric utility as provided in this
12    Section.
13        (F) If the limitation on the amount of renewable
14    energy resources procured in subparagraph (E) of this
15    paragraph (1) prevents the Agency from meeting all of the
16    goals in this subsection (c), the Agency's long-term plan
17    shall prioritize compliance with the requirements of this
18    subsection (c) regarding renewable energy credits in the
19    following order:
20            (i) renewable energy credits under existing
21        contractual obligations as of June 1, 2021;
22            (i-5) funding for the Illinois Solar for All
23        Program, as described in subparagraph (O) of this
24        paragraph (1);
25            (ii) renewable energy credits necessary to comply
26        with the new wind and new photovoltaic procurement

 

 

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

 

 

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

 

 

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1        renewable energy credits shall commence upon delivery.
2        Renewable energy credits procured under this initial
3        procurement shall be included in the Agency's
4        long-term plan and shall apply to all renewable energy
5        goals in this subsection (c).
6            (iii) Notwithstanding whether the Commission has
7        approved the periodic long-term renewable resources
8        procurement plan revision described in Section
9        16-111.5 of the Public Utilities Act, the Agency shall
10        conduct at least one subsequent forward procurement
11        for renewable energy credits from new utility-scale
12        wind projects, new utility-scale solar projects, and
13        new brownfield site photovoltaic projects within 240
14        days after the effective date of this amendatory Act
15        of the 102nd General Assembly in quantities necessary
16        to meet the requirements of subparagraph (C) of this
17        paragraph (1) through the delivery year beginning June
18        1, 2021.
19            (iv) Notwithstanding whether the Commission has
20        approved the periodic long-term renewable resources
21        procurement plan revision described in Section
22        16-111.5 of the Public Utilities Act, the Agency shall
23        open capacity for each category in the Adjustable
24        Block program within 90 days after the effective date
25        of this amendatory Act of the 102nd General Assembly
26        manner:

 

 

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

 

 

10300HB3445sam003- 31 -LRB103 29599 LNS 62504 a

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

 

 

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

 

 

10300HB3445sam003- 33 -LRB103 29599 LNS 62504 a

1                requirements of subparagraph (Q) of this
2                paragraph (1), as applicable. Projects not on
3                a waitlist as of the opening of this block
4                shall be subject to the contract provisions
5                outlined in item (iii) of subparagraph (L) of
6                this paragraph (1). The Agency shall strive to
7                publish updated prices and an updated
8                renewable energy credit delivery contract as
9                quickly as possible.
10                (3) For opening the first 2 blocks of annual
11            capacity for projects participating in item (iii)
12            of subparagraph (K) of paragraph (1) of subsection
13            (c), projects shall be selected exclusively from
14            those projects on the ordinal waitlists of
15            community renewable generation projects
16            established by the Agency based on the status of
17            those ordinal waitlists as of December 31, 2020,
18            and only those projects previously determined to
19            be eligible for the Agency's April 2019 community
20            solar project selection process.
21                The first 2 blocks of annual capacity for item
22            (iii) shall be for 250 megawatts of total
23            nameplate capacity, with both blocks opening
24            simultaneously under the schedule outlined in the
25            paragraphs below. Projects shall be selected as
26            follows:

 

 

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1                    (A) The geographic balance of selected
2                projects shall follow the Group classification
3                found in the Agency's Revised Long-Term
4                Renewable Resources Procurement Plan, with 70%
5                of capacity allocated to projects on the Group
6                B waitlist and 30% of capacity allocated to
7                projects on the Group A waitlist.
8                    (B) Contract awards for waitlisted
9                projects shall be allocated proportionate to
10                the total nameplate capacity amount across
11                both ordinal waitlists associated with that
12                applicant firm or its affiliates, subject to
13                the following conditions.
14                        (i) Each applicant firm having a
15                    waitlisted project eligible for selection
16                    shall receive no less than 500 kilowatts
17                    in awarded capacity across all groups, and
18                    no approved vendor may receive more than
19                    20% of each Group's waitlist allocation.
20                        (ii) Each applicant firm, upon
21                    receiving an award of program capacity
22                    proportionate to its waitlisted capacity,
23                    may then determine which waitlisted
24                    projects it chooses to be selected for a
25                    contract award up to that capacity amount.
26                        (iii) Assuming all other program

 

 

10300HB3445sam003- 35 -LRB103 29599 LNS 62504 a

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

 

 

10300HB3445sam003- 36 -LRB103 29599 LNS 62504 a

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

 

 

10300HB3445sam003- 37 -LRB103 29599 LNS 62504 a

1                    commercial customers with subscriptions of
2                    below 25 kilowatts in size;
3                        (ii) A requirement that a minimum of
4                    50% of subscribers to the project's
5                    nameplate capacity be residential or small
6                    commercial customers with subscriptions of
7                    below 25 kilowatts in size;
8                        (iii) Permission for the ability of a
9                    contract holder to substitute projects
10                    with other waitlisted projects without
11                    penalty should a project receive a
12                    non-binding estimate of costs to construct
13                    the interconnection facilities and any
14                    required distribution upgrades associated
15                    with that project of greater than 30 cents
16                    per watt AC of that project's nameplate
17                    capacity. In developing the applicable
18                    contract instrument, the Agency may
19                    consider whether other circumstances
20                    outside of the control of the applicant
21                    firm should also warrant project
22                    substitution rights.
23                    The Agency shall publish a finalized
24                updated renewable energy credit delivery
25                contract developed consistent with these terms
26                and conditions no less than 30 days before

 

 

10300HB3445sam003- 38 -LRB103 29599 LNS 62504 a

1                applicant firms must submit their portfolio of
2                projects pursuant to item (D).
3                    (F) To be eligible for an award, the
4                applicant firm shall certify that not less
5                than prevailing wage, as determined pursuant
6                to the Illinois Prevailing Wage Act, was or
7                will be paid to employees who are engaged in
8                construction activities associated with a
9                selected project.
10                (4) The Agency shall open the first block of
11            annual capacity for the category described in item
12            (iv) of subparagraph (K) of this paragraph (1).
13            The first block of annual capacity for item (iv)
14            shall be for at least 50 megawatts of total
15            nameplate capacity. Renewable energy credit prices
16            shall be fixed, without further adjustment under
17            any other provision of this Act or for any other
18            reason, at the price in the last open block in the
19            category described in item (ii) of subparagraph
20            (K) of this paragraph (1). Pricing for future
21            blocks of annual capacity for this category may be
22            adjusted in the Agency's second revision to its
23            Long-Term Renewable Resources Procurement Plan.
24            Projects in this category shall be subject to the
25            contract terms outlined in item (iv) of
26            subparagraph (L) of this paragraph (1).

 

 

10300HB3445sam003- 39 -LRB103 29599 LNS 62504 a

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

 

 

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1            paragraph (1). The first two blocks of annual
2            capacity for item (vi) shall be for at least 75
3            megawatts of total nameplate capacity. The price
4            of renewable energy credits for the blocks of
5            capacity shall be 4% less than the price of the
6            last open blocks in the categories described in
7            items (i) and (ii) of subparagraph (K) of this
8            paragraph (1). Pricing for future blocks of annual
9            capacity for this category may be adjusted in the
10            Agency's second revision to its Long-Term
11            Renewable Resources Procurement Plan. Projects in
12            this category shall be subject to the applicable
13            contract terms outlined in items (ii) and (iii) of
14            subparagraph (L) of this paragraph (1).
15            (v) Upon the effective date of this amendatory Act
16        of the 102nd General Assembly, for all competitive
17        procurements and any procurements of renewable energy
18        credit from new utility-scale wind and new
19        utility-scale photovoltaic projects, the Agency shall
20        procure indexed renewable energy credits and direct
21        respondents to offer a strike price.
22                (1) The purchase price of the indexed
23            renewable energy credit payment shall be
24            calculated for each settlement period. That
25            payment, for any settlement period, shall be equal
26            to the difference resulting from subtracting the

 

 

10300HB3445sam003- 41 -LRB103 29599 LNS 62504 a

1            strike price from the index price for that
2            settlement period. If this difference results in a
3            negative number, the indexed REC counterparty
4            shall owe the seller the absolute value multiplied
5            by the quantity of energy produced in the relevant
6            settlement period. If this difference results in a
7            positive number, the seller shall owe the indexed
8            REC counterparty this amount multiplied by the
9            quantity of energy produced in the relevant
10            settlement period.
11                (2) Parties shall cash settle every month,
12            summing up all settlements (both positive and
13            negative, if applicable) for the prior month.
14                (3) To ensure funding in the annual budget
15            established under subparagraph (E) for indexed
16            renewable energy credit procurements for each year
17            of the term of such contracts, which must have a
18            minimum tenure of 20 calendar years, the
19            procurement administrator, Agency, Commission
20            staff, and procurement monitor shall quantify the
21            annual cost of the contract by utilizing an
22            industry-standard, third-party forward price curve
23            for energy at the appropriate hub or load zone,
24            including the estimated magnitude and timing of
25            the price effects related to federal carbon
26            controls. Each forward price curve shall contain a

 

 

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1            specific value of the forecasted market price of
2            electricity for each annual delivery year of the
3            contract. For procurement planning purposes, the
4            impact on the annual budget for the cost of
5            indexed renewable energy credits for each delivery
6            year shall be determined as the expected annual
7            contract expenditure for that year, equaling the
8            difference between (i) the sum across all relevant
9            contracts of the applicable strike price
10            multiplied by contract quantity and (ii) the sum
11            across all relevant contracts of the forward price
12            curve for the applicable load zone for that year
13            multiplied by contract quantity. The contracting
14            utility shall not assume an obligation in excess
15            of the estimated annual cost of the contracts for
16            indexed renewable energy credits. Forward curves
17            shall be revised on an annual basis as updated
18            forward price curves are released and filed with
19            the Commission in the proceeding approving the
20            Agency's most recent long-term renewable resources
21            procurement plan. If the expected contract spend
22            is higher or lower than the total quantity of
23            contracts multiplied by the forward price curve
24            value for that year, the forward price curve shall
25            be updated by the procurement administrator, in
26            consultation with the Agency, Commission staff,

 

 

10300HB3445sam003- 43 -LRB103 29599 LNS 62504 a

1            and procurement monitors, using then-currently
2            available price forecast data and additional
3            budget dollars shall be obligated or reobligated
4            as appropriate.
5                (4) To ensure that indexed renewable energy
6            credit prices remain predictable and affordable,
7            the Agency may consider the institution of a price
8            collar on REC prices paid under indexed renewable
9            energy credit procurements establishing floor and
10            ceiling REC prices applicable to indexed REC
11            contract prices. Any price collars applicable to
12            indexed REC procurements shall be proposed by the
13            Agency through its long-term renewable resources
14            procurement plan.
15            (vi) All procurements under this subparagraph (G)
16        shall comply with the geographic requirements in
17        subparagraph (I) of this paragraph (1) and shall
18        follow the procurement processes and procedures
19        described in this Section and Section 16-111.5 of the
20        Public Utilities Act to the extent practicable, and
21        these processes and procedures may be expedited to
22        accommodate the schedule established by this
23        subparagraph (G).
24        (H) The procurement of renewable energy resources for
25    a given delivery year shall be reduced as described in
26    this subparagraph (H) if an alternative retail electric

 

 

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

 

 

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1        shall notify the Agency and the applicable utility, no
2        later than February 28 of the year preceding the
3        applicable delivery year or 15 days after June 1, 2017
4        (the effective date of Public Act 99-906), whichever
5        is later, of its election under item (ii) of this
6        subparagraph (H) to supply renewable energy credits to
7        retail customers of the utility. Such election shall
8        identify the amount of renewable energy credits to be
9        supplied by the alternative retail electric supplier
10        to the utility's retail customers and the source of
11        the renewable energy credits identified in the
12        informational filing as described in item (i) of this
13        subparagraph (H), subject to the following
14        limitations:
15                For the delivery year beginning June 1, 2018,
16            the maximum amount of renewable energy credits to
17            be supplied by an alternative retail electric
18            supplier under this subparagraph (H) shall be 68%
19            multiplied by 25% multiplied by 14.5% multiplied
20            by the amount of metered electricity
21            (megawatt-hours) delivered by the alternative
22            retail electric supplier to Illinois retail
23            customers during the delivery year ending May 31,
24            2016.
25                For delivery years beginning June 1, 2019 and
26            each year thereafter, the maximum amount of

 

 

10300HB3445sam003- 46 -LRB103 29599 LNS 62504 a

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

 

 

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1        (iii) of this subparagraph (H) are met, the charges
2        that would otherwise be applicable to the retail
3        customers of the alternative retail electric supplier
4        under paragraph (6) of this subsection (c) for the
5        applicable delivery year shall be reduced by the ratio
6        of the quantity of renewable energy credits supplied
7        by the alternative retail electric supplier compared
8        to that supplier's target renewable energy credit
9        quantity. The supplier's target renewable energy
10        credit quantity for the delivery year beginning June
11        1, 2018 is 14.5% multiplied by the total amount of
12        metered electricity (megawatt-hours) delivered by the
13        alternative retail supplier in that delivery year,
14        provided that the 14.5% shall increase by 1.5% each
15        delivery year thereafter to 25% by the delivery year
16        beginning June 1, 2025, and thereafter the 25% value
17        shall apply to each delivery year.
18            On or before April 1 of each year, the Agency shall
19        annually publish a report on its website that
20        identifies the aggregate amount of renewable energy
21        credits supplied by alternative retail electric
22        suppliers under this subparagraph (H).
23        (I) The Agency shall design its long-term renewable
24    energy procurement plan to maximize the State's interest
25    in the health, safety, and welfare of its residents,
26    including but not limited to minimizing sulfur dioxide,

 

 

10300HB3445sam003- 48 -LRB103 29599 LNS 62504 a

1    nitrogen oxide, particulate matter and other pollution
2    that adversely affects public health in this State,
3    increasing fuel and resource diversity in this State,
4    enhancing the reliability and resiliency of the
5    electricity distribution system in this State, meeting
6    goals to limit carbon dioxide emissions under federal or
7    State law, and contributing to a cleaner and healthier
8    environment for the citizens of this State. In order to
9    further these legislative purposes, renewable energy
10    credits shall be eligible to be counted toward the
11    renewable energy requirements of this subsection (c) if
12    they are generated from facilities located in this State.
13    The Agency may qualify renewable energy credits from
14    facilities located in states adjacent to Illinois or
15    renewable energy credits associated with the electricity
16    generated by a utility-scale wind energy facility or
17    utility-scale photovoltaic facility and transmitted by a
18    qualifying direct current project described in subsection
19    (b-5) of Section 8-406 of the Public Utilities Act to a
20    delivery point on the electric transmission grid located
21    in this State or a state adjacent to Illinois, if the
22    generator demonstrates and the Agency determines that the
23    operation of such facility or facilities will help promote
24    the State's interest in the health, safety, and welfare of
25    its residents based on the public interest criteria
26    described above. For the purposes of this Section,

 

 

10300HB3445sam003- 49 -LRB103 29599 LNS 62504 a

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

 

 

10300HB3445sam003- 50 -LRB103 29599 LNS 62504 a

1    regulated by this State or any other state or states on or
2    after January 1, 2017. Each contract executed to purchase
3    renewable energy credits under this subsection (c) shall
4    provide for the contract's termination if the costs of the
5    generating unit supplying the renewable energy credits
6    subsequently begin to be recovered through rates regulated
7    by this State or any other state or states; and each
8    contract shall further provide that, in that event, the
9    supplier of the credits must return 110% of all payments
10    received under the contract. Amounts returned under the
11    requirements of this subparagraph (J) shall be retained by
12    the utility and all of these amounts shall be used for the
13    procurement of additional renewable energy credits from
14    new wind or new photovoltaic resources as defined in this
15    subsection (c). The long-term plan shall provide that
16    these renewable energy credits shall be procured in the
17    next procurement event.
18        Notwithstanding the limitations of this subparagraph
19    (J), renewable energy credits sourced from generating
20    units that are constructed, purchased, owned, or leased by
21    an electric utility as part of an approved project,
22    program, or pilot under Section 1-56 of this Act shall be
23    eligible to be counted toward the renewable energy
24    requirements of this subsection (c), regardless of how the
25    costs of these units are recovered. As long as a
26    generating unit or an identifiable portion of a generating

 

 

10300HB3445sam003- 51 -LRB103 29599 LNS 62504 a

1    unit has not had and does not have its costs recovered
2    through rates regulated by this State or any other state,
3    HVDC renewable energy credits associated with that
4    generating unit or identifiable portion thereof shall be
5    eligible to be counted toward the renewable energy
6    requirements of this subsection (c).
7        (K) The long-term renewable resources procurement plan
8    developed by the Agency in accordance with subparagraph
9    (A) of this paragraph (1) shall include an Adjustable
10    Block program for the procurement of renewable energy
11    credits from new photovoltaic projects that are
12    distributed renewable energy generation devices or new
13    photovoltaic community renewable generation projects. The
14    Adjustable Block program shall be generally designed to
15    provide for the steady, predictable, and sustainable
16    growth of new solar photovoltaic development in Illinois.
17    To this end, the Adjustable Block program shall provide a
18    transparent annual schedule of prices and quantities to
19    enable the photovoltaic market to scale up and for
20    renewable energy credit prices to adjust at a predictable
21    rate over time. The prices set by the Adjustable Block
22    program can be reflected as a set value or as the product
23    of a formula.
24        The Adjustable Block program shall include for each
25    category of eligible projects for each delivery year: a
26    single block of nameplate capacity, a price for renewable

 

 

10300HB3445sam003- 52 -LRB103 29599 LNS 62504 a

1    energy credits within that block, and the terms and
2    conditions for securing a spot on a waitlist once the
3    block is fully committed or reserved. Except as outlined
4    below, the waitlist of projects in a given year will carry
5    over to apply to the subsequent year when another block is
6    opened. Only projects energized on or after June 1, 2017
7    shall be eligible for the Adjustable Block program. For
8    each category for each delivery year the Agency shall
9    determine the amount of generation capacity in each block,
10    and the purchase price for each block, provided that the
11    purchase price provided and the total amount of generation
12    in all blocks for all categories shall be sufficient to
13    meet the goals in this subsection (c). The Agency shall
14    strive to issue a single block sized to provide for
15    stability and market growth. The Agency shall establish
16    program eligibility requirements that ensure that projects
17    that enter the program are sufficiently mature to indicate
18    a demonstrable path to completion. The Agency may
19    periodically review its prior decisions establishing the
20    amount of generation capacity in each block, and the
21    purchase price for each block, and may propose, on an
22    expedited basis, changes to these previously set values,
23    including but not limited to redistributing these amounts
24    and the available funds as necessary and appropriate,
25    subject to Commission approval as part of the periodic
26    plan revision process described in Section 16-111.5 of the

 

 

10300HB3445sam003- 53 -LRB103 29599 LNS 62504 a

1    Public Utilities Act. The Agency may define different
2    block sizes, purchase prices, or other distinct terms and
3    conditions for projects located in different utility
4    service territories if the Agency deems it necessary to
5    meet the goals in this subsection (c).
6        The Adjustable Block program shall include the
7    following categories in at least the following amounts:
8            (i) At least 20% from distributed renewable energy
9        generation devices with a nameplate capacity of no
10        more than 25 kilowatts.
11            (ii) At least 20% from distributed renewable
12        energy generation devices with a nameplate capacity of
13        more than 25 kilowatts and no more than 5,000
14        kilowatts. The Agency may create sub-categories within
15        this category to account for the differences between
16        projects for small commercial customers, large
17        commercial customers, and public or non-profit
18        customers.
19            (iii) At least 30% from photovoltaic community
20        renewable generation projects. Capacity for this
21        category for the first 2 delivery years after the
22        effective date of this amendatory Act of the 102nd
23        General Assembly shall be allocated to waitlist
24        projects as provided in paragraph (3) of item (iv) of
25        subparagraph (G). Starting in the third delivery year
26        after the effective date of this amendatory Act of the

 

 

10300HB3445sam003- 54 -LRB103 29599 LNS 62504 a

1        102nd General Assembly or earlier if the Agency
2        determines there is additional capacity needed for to
3        meet previous delivery year requirements, the
4        following shall apply:
5                (1) the Agency shall select projects on a
6            first-come, first-serve basis, however the Agency
7            may suggest additional methods to prioritize
8            projects that are submitted at the same time;
9                (2) projects shall have subscriptions of 25 kW
10            or less for at least 50% of the facility's
11            nameplate capacity and the Agency shall price the
12            renewable energy credits with that as a factor;
13                (3) projects shall not be colocated with one
14            or more other community renewable generation
15            projects, as defined in the Agency's first revised
16            long-term renewable resources procurement plan
17            approved by the Commission on February 18, 2020,
18            such that the aggregate nameplate capacity exceeds
19            5,000 kilowatts; and
20                (4) projects greater than 2 MW may not apply
21            until after the approval of the Agency's revised
22            Long-Term Renewable Resources Procurement Plan
23            after the effective date of this amendatory Act of
24            the 102nd General Assembly.
25            (iv) At least 15% from distributed renewable
26        generation devices or photovoltaic community renewable

 

 

10300HB3445sam003- 55 -LRB103 29599 LNS 62504 a

1        generation projects installed on at public school land
2        schools. The Agency may create subcategories within
3        this category to account for the differences between
4        project size or location. Projects located within
5        environmental justice communities or within
6        Organizational Units that fall within Tier 1 or Tier 2
7        shall be given priority. Each of the Agency's periodic
8        updates to its long-term renewable resources
9        procurement plan to incorporate the procurement
10        described in this subparagraph (iv) shall also include
11        the proposed quantities or blocks, pricing, and
12        contract terms applicable to the procurement as
13        indicated herein. In each such update and procurement,
14        the Agency shall set the renewable energy credit price
15        and establish payment terms for the renewable energy
16        credits procured pursuant to this subparagraph (iv)
17        that make it feasible and affordable for public
18        schools to install photovoltaic distributed renewable
19        energy devices on their premises, including, but not
20        limited to, those public schools subject to the
21        prioritization provisions of this subparagraph. For
22        the purposes of this item (iv):
23            "Environmental Justice Community" shall have the
24        same meaning set forth in the Agency's long-term
25        renewable resources procurement plan;
26            "Organization Unit", "Tier 1" and "Tier 2" shall

 

 

10300HB3445sam003- 56 -LRB103 29599 LNS 62504 a

1        have the meanings set for in Section 18-8.15 of the
2        School Code;
3            "Public schools" shall have the meaning set forth
4        in Section 1-3 of the School Code and includes public
5        institutions of higher education, as defined in the
6        Board of Higher Education Act.
7            (v) At least 5% from community-driven community
8        solar projects intended to provide more direct and
9        tangible connection and benefits to the communities
10        which they serve or in which they operate and,
11        additionally, to increase the variety of community
12        solar locations, models, and options in Illinois. As
13        part of its long-term renewable resources procurement
14        plan, the Agency shall develop selection criteria for
15        projects participating in this category. Nothing in
16        this Section shall preclude the Agency from creating a
17        selection process that maximizes community ownership
18        and community benefits in selecting projects to
19        receive renewable energy credits. Selection criteria
20        shall include:
21                (1) community ownership or community
22            wealth-building;
23                (2) additional direct and indirect community
24            benefit, beyond project participation as a
25            subscriber, including, but not limited to,
26            economic, environmental, social, cultural, and

 

 

10300HB3445sam003- 57 -LRB103 29599 LNS 62504 a

1            physical benefits;
2                (3) meaningful involvement in project
3            organization and development by community members
4            or nonprofit organizations or public entities
5            located in or serving the community;
6                (4) engagement in project operations and
7            management by nonprofit organizations, public
8            entities, or community members; and
9                (5) whether a project is developed in response
10            to a site-specific RFP developed by community
11            members or a nonprofit organization or public
12            entity located in or serving the community.
13            Selection criteria may also prioritize projects
14        that:
15                (1) are developed in collaboration with or to
16            provide complementary opportunities for the Clean
17            Jobs Workforce Network Program, the Illinois
18            Climate Works Preapprenticeship Program, the
19            Returning Residents Clean Jobs Training Program,
20            the Clean Energy Contractor Incubator Program, or
21            the Clean Energy Primes Contractor Accelerator
22            Program;
23                (2) increase the diversity of locations of
24            community solar projects in Illinois, including by
25            locating in urban areas and population centers;
26                (3) are located in Equity Investment Eligible

 

 

10300HB3445sam003- 58 -LRB103 29599 LNS 62504 a

1            Communities;
2                (4) are not greenfield projects;
3                (5) serve only local subscribers;
4                (6) have a nameplate capacity that does not
5            exceed 500 kW;
6                (7) are developed by an equity eligible
7            contractor; or
8                (8) otherwise meaningfully advance the goals
9            of providing more direct and tangible connection
10            and benefits to the communities which they serve
11            or in which they operate and increasing the
12            variety of community solar locations, models, and
13            options in Illinois.
14            For the purposes of this item (v):
15            "Community" means a social unit in which people
16        come together regularly to effect change; a social
17        unit in which participants are marked by a cooperative
18        spirit, a common purpose, or shared interests or
19        characteristics; or a space understood by its
20        residents to be delineated through geographic
21        boundaries or landmarks.
22            "Community benefit" means a range of services and
23        activities that provide affirmative, economic,
24        environmental, social, cultural, or physical value to
25        a community; or a mechanism that enables economic
26        development, high-quality employment, and education

 

 

10300HB3445sam003- 59 -LRB103 29599 LNS 62504 a

1        opportunities for local workers and residents, or
2        formal monitoring and oversight structures such that
3        community members may ensure that those services and
4        activities respond to local knowledge and needs.
5            "Community ownership" means an arrangement in
6        which an electric generating facility is, or over time
7        will be, in significant part, owned collectively by
8        members of the community to which an electric
9        generating facility provides benefits; members of that
10        community participate in decisions regarding the
11        governance, operation, maintenance, and upgrades of
12        and to that facility; and members of that community
13        benefit from regular use of that facility.
14            Terms and guidance within these criteria that are
15        not defined in this item (v) shall be defined by the
16        Agency, with stakeholder input, during the development
17        of the Agency's long-term renewable resources
18        procurement plan. The Agency shall develop regular
19        opportunities for projects to submit applications for
20        projects under this category, and develop selection
21        criteria that gives preference to projects that better
22        meet individual criteria as well as projects that
23        address a higher number of criteria.
24            (vi) At least 10% from distributed renewable
25        energy generation devices, which includes distributed
26        renewable energy devices with a nameplate capacity

 

 

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1        under 5,000 kilowatts or photovoltaic community
2        renewable generation projects, from applicants that
3        are equity eligible contractors. The Agency may create
4        subcategories within this category to account for the
5        differences between project size and type. The Agency
6        shall propose to increase the percentage in this item
7        (vi) over time to 40% based on factors, including, but
8        not limited to, the number of equity eligible
9        contractors and capacity used in this item (vi) in
10        previous delivery years.
11            The Agency shall propose a payment structure for
12        contracts executed pursuant to this paragraph under
13        which, upon a demonstration of qualification or need,
14        applicant firms are advanced capital disbursed after
15        contract execution but before the contracted project's
16        energization. The amount or percentage of capital
17        advanced prior to project energization shall be
18        sufficient to both cover any increase in development
19        costs resulting from prevailing wage requirements or
20        project-labor agreements, and designed to overcome
21        barriers in access to capital faced by equity eligible
22        contractors. The amount or percentage of advanced
23        capital may vary by subcategory within this category
24        and by an applicant's demonstration of need, with such
25        levels to be established through the Long-Term
26        Renewable Resources Procurement Plan authorized under

 

 

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1        subparagraph (A) of paragraph (1) of subsection (c) of
2        this Section.
3            Contracts developed featuring capital advanced
4        prior to a project's energization shall feature
5        provisions to ensure both the successful development
6        of applicant projects and the delivery of the
7        renewable energy credits for the full term of the
8        contract, including ongoing collateral requirements
9        and other provisions deemed necessary by the Agency,
10        and may include energization timelines longer than for
11        comparable project types. The percentage or amount of
12        capital advanced prior to project energization shall
13        not operate to increase the overall contract value,
14        however contracts executed under this subparagraph may
15        feature renewable energy credit prices higher than
16        those offered to similar projects participating in
17        other categories. Capital advanced prior to
18        energization shall serve to reduce the ratable
19        payments made after energization under items (ii) and
20        (iii) of subparagraph (L) or payments made for each
21        renewable energy credit delivery under item (iv) of
22        subparagraph (L).
23            (vii) The remaining capacity shall be allocated by
24        the Agency in order to respond to market demand. The
25        Agency shall allocate any discretionary capacity prior
26        to the beginning of each delivery year.

 

 

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1        To the extent there is uncontracted capacity from any
2    block in any of categories (i) through (vi) at the end of a
3    delivery year, the Agency shall redistribute that capacity
4    to one or more other categories giving priority to
5    categories with projects on a waitlist. The redistributed
6    capacity shall be added to the annual capacity in the
7    subsequent delivery year, and the price for renewable
8    energy credits shall be the price for the new delivery
9    year. Redistributed capacity shall not be considered
10    redistributed when determining whether the goals in this
11    subsection (K) have been met.
12        Notwithstanding anything to the contrary, as the
13    Agency increases the capacity in item (vi) to 40% over
14    time, the Agency may reduce the capacity of items (i)
15    through (v) proportionate to the capacity of the
16    categories of projects in item (vi), to achieve a balance
17    of project types.
18        The Adjustable Block program shall be designed to
19    ensure that renewable energy credits are procured from
20    projects in diverse locations and are not concentrated in
21    a few regional areas.
22        (L) Notwithstanding provisions for advancing capital
23    prior to project energization found in item (vi) of
24    subparagraph (K), the procurement of photovoltaic
25    renewable energy credits under items (i) through (vi) of
26    subparagraph (K) of this paragraph (1) shall otherwise be

 

 

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

 

 

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

 

 

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

 

 

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1        the first business day of the delivery year.
2        Subscription of 90% of nameplate capacity or greater
3        shall be deemed to be fully subscribed for the
4        purposes of this item (iv). For projects receiving a
5        20-year delivery contract, REC prices shall be
6        adjusted downward for consistency with the incentive
7        levels previously determined to be necessary to
8        support projects under 15-year delivery contracts,
9        taking into consideration any additional new
10        requirements placed on the projects, including, but
11        not limited to, labor standards.
12            (v) Each contract shall include provisions to
13        ensure the delivery of the estimated quantity of
14        renewable energy credits and ongoing collateral
15        requirements and other provisions deemed appropriate
16        by the Agency.
17            (vi) The utility shall be the counterparty to the
18        contracts executed under this subparagraph (L) that
19        are approved by the Commission under the process
20        described in Section 16-111.5 of the Public Utilities
21        Act. No contract shall be executed for an amount that
22        is less than one renewable energy credit per year.
23            (vii) If, at any time, approved applications for
24        the Adjustable Block program exceed funds collected by
25        the electric utility or would cause the Agency to
26        exceed the limitation described in subparagraph (E) of

 

 

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

 

 

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

 

 

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1    application fees and shall notify stakeholders in advance
2    of any planned changes.
3        In addition to covering the costs of program
4    administration, the Agency, in conjunction with its
5    Program Administrator, may also use the proceeds of such
6    fees charged to participating firms to support public
7    education and ongoing regional and national coordination
8    with nonprofit organizations, public bodies, and others
9    engaged in the implementation of renewable energy
10    incentive programs or similar initiatives. This work may
11    include developing papers and reports, hosting regional
12    and national conferences, and other work deemed necessary
13    by the Agency to position the State of Illinois as a
14    national leader in renewable energy incentive program
15    development and administration.
16        The Agency and its consultant or consultants shall
17    monitor block activity, share program activity with
18    stakeholders and conduct quarterly meetings to discuss
19    program activity and market conditions. If necessary, the
20    Agency may make prospective administrative adjustments to
21    the Adjustable Block program design, such as making
22    adjustments to purchase prices as necessary to achieve the
23    goals of this subsection (c). Program modifications to any
24    block price that do not deviate from the Commission's
25    approved value by more than 10% shall take effect
26    immediately and are not subject to Commission review and

 

 

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1    approval. Program modifications to any block price that
2    deviate more than 10% from the Commission's approved value
3    must be approved by the Commission as a long-term plan
4    amendment under Section 16-111.5 of the Public Utilities
5    Act. The Agency shall consider stakeholder feedback when
6    making adjustments to the Adjustable Block design and
7    shall notify stakeholders in advance of any planned
8    changes.
9        The Agency and its program administrators for both the
10    Adjustable Block program and the Illinois Solar for All
11    Program, consistent with the requirements of this
12    subsection (c) and subsection (b) of Section 1-56 of this
13    Act, shall propose the Adjustable Block program terms,
14    conditions, and requirements, including the prices to be
15    paid for renewable energy credits, where applicable, and
16    requirements applicable to participating entities and
17    project applications, through the development, review, and
18    approval of the Agency's long-term renewable resources
19    procurement plan described in this subsection (c) and
20    paragraph (5) of subsection (b) of Section 16-111.5 of the
21    Public Utilities Act. Terms, conditions, and requirements
22    for program participation shall include the following:
23            (i) The Agency shall establish a registration
24        process for entities seeking to qualify for
25        program-administered incentive funding and establish
26        baseline qualifications for vendor approval. The

 

 

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

 

 

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

 

 

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1        shall also refer complaints to those entities as
2        appropriate.
3        (N) The Agency shall establish the terms, conditions,
4    and program requirements for photovoltaic community
5    renewable generation projects with a goal to expand access
6    to a broader group of energy consumers, to ensure robust
7    participation opportunities for residential and small
8    commercial customers and those who cannot install
9    renewable energy on their own properties. Subject to
10    reasonable limitations, any plan approved by the
11    Commission shall allow subscriptions to community
12    renewable generation projects to be portable and
13    transferable. For purposes of this subparagraph (N),
14    "portable" means that subscriptions may be retained by the
15    subscriber even if the subscriber relocates or changes its
16    address within the same utility service territory; and
17    "transferable" means that a subscriber may assign or sell
18    subscriptions to another person within the same utility
19    service territory.
20        Through the development of its long-term renewable
21    resources procurement plan, the Agency may consider
22    whether community renewable generation projects utilizing
23    technologies other than photovoltaics should be supported
24    through State-administered incentive funding, and may
25    issue requests for information to gauge market demand.
26        Electric utilities shall provide a monetary credit to

 

 

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1    a subscriber's subsequent bill for service for the
2    proportional output of a community renewable generation
3    project attributable to that subscriber as specified in
4    Section 16-107.5 of the Public Utilities Act.
5        The Agency shall purchase renewable energy credits
6    from subscribed shares of photovoltaic community renewable
7    generation projects through the Adjustable Block program
8    described in subparagraph (K) of this paragraph (1) or
9    through the Illinois Solar for All Program described in
10    Section 1-56 of this Act. The electric utility shall
11    purchase any unsubscribed energy from community renewable
12    generation projects that are Qualifying Facilities ("QF")
13    under the electric utility's tariff for purchasing the
14    output from QFs under Public Utilities Regulatory Policies
15    Act of 1978.
16        The owners of and any subscribers to a community
17    renewable generation project shall not be considered
18    public utilities or alternative retail electricity
19    suppliers under the Public Utilities Act solely as a
20    result of their interest in or subscription to a community
21    renewable generation project and shall not be required to
22    become an alternative retail electric supplier by
23    participating in a community renewable generation project
24    with a public utility.
25        (O) For the delivery year beginning June 1, 2018, the
26    long-term renewable resources procurement plan required by

 

 

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1    this subsection (c) shall provide for the Agency to
2    procure contracts to continue offering the Illinois Solar
3    for All Program described in subsection (b) of Section
4    1-56 of this Act, and the contracts approved by the
5    Commission shall be executed by the utilities that are
6    subject to this subsection (c). The long-term renewable
7    resources procurement plan shall allocate up to
8    $50,000,000 per delivery year to fund the programs, and
9    the plan shall determine the amount of funding to be
10    apportioned to the programs identified in subsection (b)
11    of Section 1-56 of this Act; provided that for the
12    delivery years beginning June 1, 2021, June 1, 2022, and
13    June 1, 2023, the long-term renewable resources
14    procurement plan may average the annual budgets over a
15    3-year period to account for program ramp-up. For the
16    delivery years beginning June 1, 2021, June 1, 2024, June
17    1, 2027, and June 1, 2030 and additional $10,000,000 shall
18    be provided to the Department of Commerce and Economic
19    Opportunity to implement the workforce development
20    programs and reporting as outlined in Section 16-108.12 of
21    the Public Utilities Act. In making the determinations
22    required under this subparagraph (O), the Commission shall
23    consider the experience and performance under the programs
24    and any evaluation reports. The Commission shall also
25    provide for an independent evaluation of those programs on
26    a periodic basis that are funded under this subparagraph

 

 

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1    (O).
2        (P) All programs and procurements under this
3    subsection (c) shall be designed to encourage
4    participating projects to use a diverse and equitable
5    workforce and a diverse set of contractors, including
6    minority-owned businesses, disadvantaged businesses,
7    trade unions, graduates of any workforce training programs
8    administered under this Act, and small businesses.
9        The Agency shall develop a method to optimize
10    procurement of renewable energy credits from proposed
11    utility-scale projects that are located in communities
12    eligible to receive Energy Transition Community Grants
13    pursuant to Section 10-20 of the Energy Community
14    Reinvestment Act. If this requirement conflicts with other
15    provisions of law or the Agency determines that full
16    compliance with the requirements of this subparagraph (P)
17    would be unreasonably costly or administratively
18    impractical, the Agency is to propose alternative
19    approaches to achieve development of renewable energy
20    resources in communities eligible to receive Energy
21    Transition Community Grants pursuant to Section 10-20 of
22    the Energy Community Reinvestment Act or seek an exemption
23    from this requirement from the Commission.
24        (Q) Each facility listed in subitems (i) through
25    (viii) of item (1) of this subparagraph (Q) for which a
26    renewable energy credit delivery contract is signed after

 

 

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1    the effective date of this amendatory Act of the 102nd
2    General Assembly is subject to the following requirements
3    through the Agency's long-term renewable resources
4    procurement plan:
5            (1) Each facility shall be subject to the
6        prevailing wage requirements included in the
7        Prevailing Wage Act. The Agency shall require
8        verification that all construction performed on the
9        facility by the renewable energy credit delivery
10        contract holder, its contractors, or its
11        subcontractors relating to construction of the
12        facility is performed by construction employees
13        receiving an amount for that work equal to or greater
14        than the general prevailing rate, as that term is
15        defined in Section 3 of the Prevailing Wage Act. For
16        purposes of this item (1), "house of worship" means
17        property that is both (1) used exclusively by a
18        religious society or body of persons as a place for
19        religious exercise or religious worship and (2)
20        recognized as exempt from taxation pursuant to Section
21        15-40 of the Property Tax Code. This item (1) shall
22        apply to any the following:
23                (i) all new utility-scale wind projects;
24                (ii) all new utility-scale photovoltaic
25            projects;
26                (iii) all new brownfield photovoltaic

 

 

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1            projects;
2                (iv) all new photovoltaic community renewable
3            energy facilities that qualify for item (iii) of
4            subparagraph (K) of this paragraph (1);
5                (v) all new community driven community
6            photovoltaic projects that qualify for item (v) of
7            subparagraph (K) of this paragraph (1);
8                (vi) all new photovoltaic projects on public
9            school land distributed renewable energy
10            generation devices on schools that qualify for
11            item (iv) of subparagraph (K) of this paragraph
12            (1);
13                (vii) all new photovoltaic distributed
14            renewable energy generation devices that (1)
15            qualify for item (i) 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                (viii) all new photovoltaic distributed
22            renewable energy generation devices that (1)
23            qualify for item (ii) of subparagraph (K) of this
24            paragraph (1); (2) are not projects that serve
25            single-family or multi-family residential
26            buildings; and (3) are not houses of worship where

 

 

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1            the aggregate capacity including collocated
2            projects would not exceed 100 kilowatts.
3            (2) Renewable energy credits procured from new
4        utility-scale wind projects, new utility-scale solar
5        projects, and new brownfield solar projects pursuant
6        to Agency procurement events occurring after the
7        effective date of this amendatory Act of the 102nd
8        General Assembly must be from facilities built by
9        general contractors that must enter into a project
10        labor agreement, as defined by this Act, prior to
11        construction. The project labor agreement shall be
12        filed with the Director in accordance with procedures
13        established by the Agency through its long-term
14        renewable resources procurement plan. Any information
15        submitted to the Agency in this item (2) shall be
16        considered commercially sensitive information. At a
17        minimum, the project labor agreement must provide the
18        names, addresses, and occupations of the owner of the
19        plant and the individuals representing the labor
20        organization employees participating in the project
21        labor agreement consistent with the Project Labor
22        Agreements Act. The agreement must also specify the
23        terms and conditions as defined by this Act.
24            (3) It is the intent of this Section to ensure that
25        economic development occurs across Illinois
26        communities, that emerging businesses may grow, and

 

 

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1        that there is improved access to the clean energy
2        economy by persons who have greater economic burdens
3        to success. The Agency shall take into consideration
4        the unique cost of compliance of this subparagraph (Q)
5        that might be borne by equity eligible contractors,
6        shall include such costs when determining the price of
7        renewable energy credits in the Adjustable Block
8        program, and shall take such costs into consideration
9        in a nondiscriminatory manner when comparing bids for
10        competitive procurements. The Agency shall consider
11        costs associated with compliance whether in the
12        development, financing, or construction of projects.
13        The Agency shall periodically review the assumptions
14        in these costs and may adjust prices, in compliance
15        with subparagraph (M) of this paragraph (1).
16        (R) In its long-term renewable resources procurement
17    plan, the Agency shall establish a self-direct renewable
18    portfolio standard compliance program for eligible
19    self-direct customers that purchase renewable energy
20    credits from utility-scale wind and solar projects through
21    long-term agreements for purchase of renewable energy
22    credits as described in this Section. Such long-term
23    agreements may include the purchase of energy or other
24    products on a physical or financial basis and may involve
25    an alternative retail electric supplier as defined in
26    Section 16-102 of the Public Utilities Act. This program

 

 

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1    shall take effect in the delivery year commencing June 1,
2    2023.
3            (1) For the purposes of this subparagraph:
4            "Eligible self-direct customer" means any retail
5        customers of an electric utility that serves 3,000,000
6        or more retail customers in the State and whose total
7        highest 30-minute demand was more than 10,000
8        kilowatts, or any retail customers of an electric
9        utility that serves less than 3,000,000 retail
10        customers but more than 500,000 retail customers in
11        the State and whose total highest 15-minute demand was
12        more than 10,000 kilowatts.
13            "Retail customer" has the meaning set forth in
14        Section 16-102 of the Public Utilities Act and
15        multiple retail customer accounts under the same
16        corporate parent may aggregate their account demands
17        to meet the 10,000 kilowatt threshold. The criteria
18        for determining whether this subparagraph is
19        applicable to a retail customer shall be based on the
20        12 consecutive billing periods prior to the start of
21        the year in which the application is filed.
22            (2) For renewable energy credits to count toward
23        the self-direct renewable portfolio standard
24        compliance program, they must:
25                (i) qualify as renewable energy credits as
26            defined in Section 1-10 of this Act;

 

 

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1                (ii) be sourced from one or more renewable
2            energy generating facilities that comply with the
3            geographic requirements as set forth in
4            subparagraph (I) of paragraph (1) of subsection
5            (c) as interpreted through the Agency's long-term
6            renewable resources procurement plan, or, where
7            applicable, the geographic requirements that
8            governed utility-scale renewable energy credits at
9            the time the eligible self-direct customer entered
10            into the applicable renewable energy credit
11            purchase agreement;
12                (iii) be procured through long-term contracts
13            with term lengths of at least 10 years either
14            directly with the renewable energy generating
15            facility or through a bundled power purchase
16            agreement, a virtual power purchase agreement, an
17            agreement between the renewable generating
18            facility, an alternative retail electric supplier,
19            and the customer, or such other structure as is
20            permissible under this subparagraph (R);
21                (iv) be equivalent in volume to at least 40%
22            of the eligible self-direct customer's usage,
23            determined annually by the eligible self-direct
24            customer's usage during the previous delivery
25            year, measured to the nearest megawatt-hour;
26                (v) be retired by or on behalf of the large

 

 

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1            energy customer;
2                (vi) be sourced from new utility-scale wind
3            projects or new utility-scale solar projects; and
4                (vii) if the contracts for renewable energy
5            credits are entered into after the effective date
6            of this amendatory Act of the 102nd General
7            Assembly, the new utility-scale wind projects or
8            new utility-scale solar projects must comply with
9            the requirements established in subparagraphs (P)
10            and (Q) of paragraph (1) of this subsection (c)
11            and subsection (c-10).
12            (3) The self-direct renewable portfolio standard
13        compliance program shall be designed to allow eligible
14        self-direct customers to procure new renewable energy
15        credits from new utility-scale wind projects or new
16        utility-scale photovoltaic projects. The Agency shall
17        annually determine the amount of utility-scale
18        renewable energy credits it will include each year
19        from the self-direct renewable portfolio standard
20        compliance program, subject to receiving qualifying
21        applications. In making this determination, the Agency
22        shall evaluate publicly available analyses and studies
23        of the potential market size for utility-scale
24        renewable energy long-term purchase agreements by
25        commercial and industrial energy customers and make
26        that report publicly available. If demand for

 

 

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1        participation in the self-direct renewable portfolio
2        standard compliance program exceeds availability, the
3        Agency shall ensure participation is evenly split
4        between commercial and industrial users to the extent
5        there is sufficient demand from both customer classes.
6        Each renewable energy credit procured pursuant to this
7        subparagraph (R) by a self-direct customer shall
8        reduce the total volume of renewable energy credits
9        the Agency is otherwise required to procure from new
10        utility-scale projects pursuant to subparagraph (C) of
11        paragraph (1) of this subsection (c) on behalf of
12        contracting utilities where the eligible self-direct
13        customer is located. The self-direct customer shall
14        file an annual compliance report with the Agency
15        pursuant to terms established by the Agency through
16        its long-term renewable resources procurement plan to
17        be eligible for participation in this program.
18        Customers must provide the Agency with their most
19        recent electricity billing statements or other
20        information deemed necessary by the Agency to
21        demonstrate they are an eligible self-direct customer.
22            (4) The Commission shall approve a reduction in
23        the volumetric charges collected pursuant to Section
24        16-108 of the Public Utilities Act for approved
25        eligible self-direct customers equivalent to the
26        anticipated cost of renewable energy credit deliveries

 

 

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

 

 

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

 

 

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

 

 

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1        renewable energy credits and do not notify the Agency
2        are ineligible for continued participation in the
3        self-direct renewable portfolio standard compliance
4        program.
5        (2) (Blank).
6        (3) (Blank).
7        (4) The electric utility shall retire all renewable
8    energy credits used to comply with the standard.
9        (5) Beginning with the 2010 delivery year and ending
10    June 1, 2017, an electric utility subject to this
11    subsection (c) shall apply the lesser of the maximum
12    alternative compliance payment rate or the most recent
13    estimated alternative compliance payment rate for its
14    service territory for the corresponding compliance period,
15    established pursuant to subsection (d) of Section 16-115D
16    of the Public Utilities Act to its retail customers that
17    take service pursuant to the electric utility's hourly
18    pricing tariff or tariffs. The electric utility shall
19    retain all amounts collected as a result of the
20    application of the alternative compliance payment rate or
21    rates to such customers, and, beginning in 2011, the
22    utility shall include in the information provided under
23    item (1) of subsection (d) of Section 16-111.5 of the
24    Public Utilities Act the amounts collected under the
25    alternative compliance payment rate or rates for the prior
26    year ending May 31. Notwithstanding any limitation on the

 

 

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

 

 

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

 

 

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

 

 

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1    300,000 retail customers in this State as of January 1,
2    2019. The first procurement event shall be conducted no
3    later than March 31, 2022, unless the Agency elects to
4    delay it, until no later than May 1, 2022, due to its
5    overall volume of work, and shall be to select owners of
6    electric generating facilities located in this State and
7    south of federal Interstate Highway 80 that meet the
8    eligibility criteria specified in this subsection (c-5).
9    The second procurement event shall be conducted no sooner
10    than September 30, 2022 and no later than October 31, 2022
11    and shall be to select owners of electric generating
12    facilities located anywhere in this State that meet the
13    eligibility criteria specified in this subsection (c-5).
14    The Agency shall establish and announce a time period,
15    which shall begin no later than 30 days prior to the
16    scheduled date for the procurement event, during which
17    applicants may submit applications to be selected as
18    suppliers of renewable energy credits pursuant to this
19    subsection (c-5). The eligibility criteria for selection
20    as a supplier of renewable energy credits pursuant to this
21    subsection (c-5) shall be as follows:
22            (A) The applicant owns an electric generating
23        facility located in this State that: (i) as of January
24        1, 2016, burned coal as its primary fuel to generate
25        electricity; and (ii) has, or had prior to retirement,
26        an electric generating capacity of at least 150

 

 

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

 

 

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

 

 

10300HB3445sam003- 95 -LRB103 29599 LNS 62504 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    under-delivery of renewable energy credits within
2    reasonable ranges during each 12-month period and penalty,
3    default, and enforcement provisions for failure of the
4    selling party to deliver renewable energy credits as
5    specified in the contract and to comply with the
6    requirements of this subsection (c-5). The standard form
7    contract shall specify that all renewable energy credits
8    delivered to the electric utility pursuant to the contract
9    shall be retired. The Agency shall make the proposed
10    contracts available for a reasonable period for comment by
11    potential applicants, and shall publish the final form
12    contract at least 30 days before the date of the first
13    procurement event.
14        (9) Coal to Solar and Energy Storage Initiative
15    Charge.
16            (A) By no later than July 1, 2022, each electric
17        utility that served more than 300,000 retail customers
18        in this State as of January 1, 2019 shall file a tariff
19        with the Commission for the billing and collection of
20        a Coal to Solar and Energy Storage Initiative Charge
21        in accordance with subsection (i-5) of Section 16-108
22        of the Public Utilities Act, with such tariff to be
23        effective, following review and approval or
24        modification by the Commission, beginning January 1,
25        2023. The tariff shall provide for the calculation and
26        setting of the electric utility's Coal to Solar and

 

 

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

 

 

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

 

 

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1        Energy Storage Initiative Fund to any other fund of
2        this State or in having any such funds utilized for any
3        purpose other than the express purposes set forth in
4        this paragraph (10).
5            (C) The Department shall utilize up to
6        $280,500,000 in the Coal to Solar and Energy Storage
7        Initiative Fund for grants, assuming sufficient
8        qualifying applicants, to support installation of
9        energy storage facilities at the sites of up to 3
10        qualifying electric generating facilities located in
11        the Midcontinent Independent System Operator, Inc.,
12        region in Illinois and the sites of up to 2 qualifying
13        electric generating facilities located in the PJM
14        Interconnection, LLC region in Illinois that meet the
15        criteria set forth in this subparagraph (C). The
16        criteria for receipt of a grant pursuant to this
17        subparagraph (C) are as follows:
18                (1) the electric generating facility at the
19            site has, or had prior to retirement, an electric
20            generating capacity of at least 150 megawatts;
21                (2) the electric generating facility burns (or
22            burned prior to retirement) coal as its primary
23            source of fuel;
24                (3) if the electric generating facility is
25            retired, it was retired subsequent to January 1,
26            2016;

 

 

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1                (4) the owner of the electric generating
2            facility has not been selected by the Agency
3            pursuant to this subsection (c-5) of this Section
4            to enter into a contract to sell renewable energy
5            credits to one or more electric utilities from a
6            new renewable energy facility located or to be
7            located at or adjacent to the site at which the
8            electric generating facility is located;
9                (5) the electric generating facility located
10            at the site was at one time owned, in whole or in
11            part, by a public utility as defined in Section
12            3-105 of the Public Utilities Act;
13                (6) the electric generating facility at the
14            site is not owned by (i) an electric cooperative
15            as defined in Section 3-119 of the Public
16            Utilities Act, or (ii) an entity described in
17            subsection (b)(1) of Section 3-105 of the Public
18            Utilities Act, or an association or consortium of
19            or an entity owned by entities described in items
20            (i) or (ii);
21                (7) the proposed energy storage facility at
22            the site will have energy storage capacity of at
23            least 37 megawatts;
24                (8) the owner commits to place the energy
25            storage facility into commercial operation on
26            either June 1, 2023, June 1, 2024, or June 1, 2025,

 

 

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

 

 

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1                (11) the owner commits that not less than the
2            prevailing wage, as determined pursuant to the
3            Prevailing Wage Act, will be paid to the owner's
4            employees engaged in construction activities
5            associated with the new energy storage facility
6            and to the employees of the owner's contractors
7            engaged in construction activities associated with
8            the new energy storage facility, and that, on or
9            before the commercial operation date of the new
10            energy storage facility, the owner shall file a
11            report with the Department certifying that the
12            requirements of this subparagraph (11) have been
13            met; and
14                (12) the owner commits that if selected to
15            receive a grant, it will negotiate a project labor
16            agreement for the construction of the new energy
17            storage facility that includes provisions
18            requiring the parties to the agreement to work
19            together to establish diversity threshold
20            requirements and to ensure best efforts to meet
21            diversity targets, improve diversity at the
22            applicable job site, create diverse apprenticeship
23            opportunities, and create opportunities to employ
24            former coal-fired power plant workers.
25            The Department shall accept applications for this
26        grant program until March 31, 2022 and shall announce

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        industry.
2            (D) The applicant or owner may submit a revised or
3        updated plan to the Commission from time to time as
4        circumstances warrant. The applicant or owner shall
5        file annual reports with the Commission detailing the
6        applicant's or owner's progress in implementing its
7        plan and achieving its goals and any modifications the
8        applicant or owner has made to its plan to better
9        achieve its diversity, equity and inclusion goals. The
10        applicant or owner shall file a final report on the
11        fifth June 1 following the commercial operation date
12        of the new renewable energy resource or new energy
13        storage facility, but the applicant or owner shall
14        thereafter continue to be subject to applicable
15        reporting requirements of Section 5-117 of the Public
16        Utilities Act.
17    (c-10) Equity accountability system. It is the purpose of
18this subsection (c-10) to create an equity accountability
19system, which includes the minimum equity standards for all
20renewable energy procurements, the equity category of the
21Adjustable Block Program, and the equity prioritization for
22noncompetitive procurements, that is successful in advancing
23priority access to the clean energy economy for businesses and
24workers from communities that have been 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. Further, it is the purpose of this subsection to
3ensure that this equity accountability system is successful in
4advancing equity across Illinois by providing access to the
5clean energy economy for businesses and workers from
6communities that have been historically excluded from economic
7opportunities in the energy sector, have been subject to
8disproportionate levels of pollution, and have
9disproportionately experienced negative public health
10outcomes.
11        (1) Minimum equity standards. The Agency shall create
12    programs with the purpose of increasing access to and
13    development of equity eligible contractors, who are prime
14    contractors and subcontractors, across all of the programs
15    it manages. All applications for renewable energy credit
16    procurements shall comply with specific minimum equity
17    commitments. Starting in the delivery year immediately
18    following the next long-term renewable resources
19    procurement plan, at least 10% of the project workforce
20    for each entity participating in a procurement program
21    outlined in this subsection (c-10) must be done by equity
22    eligible persons or equity eligible contractors. The
23    Agency shall increase the minimum percentage each delivery
24    year thereafter by increments that ensure a statewide
25    average of 30% of the project workforce for each entity
26    participating in a procurement program is done by equity

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        this subsection.
2        (4) Publication of collected information. The Agency
3    shall publish, at least annually, information on the
4    demographics of program participants on an aggregate
5    basis.
6        (5) Nothing in this subsection shall be interpreted to
7    limit the authority of the Agency, or other agency or
8    department of the State, to require or collect demographic
9    information from applicants of other State programs.
10    (c-25) Energy Workforce Equity Database.
11        (1) The Agency, in consultation with the Department of
12    Commerce and Economic Opportunity, shall create an Energy
13    Workforce Equity Database, and may contract with a third
14    party to do so ("database program administrator"). If the
15    Department decides to contract with a third party, that
16    third party shall be exempt from the requirements of
17    Section 20-10 of the Illinois Procurement Code. The Energy
18    Workforce Equity Database shall be a searchable database
19    of suppliers, vendors, and subcontractors for clean energy
20    industries that is:
21            (A) publicly accessible;
22            (B) easy for people to find and use;
23            (C) organized by company specialty or field;
24            (D) region-specific; and
25            (E) populated with information including, but not
26        limited to, contacts for suppliers, vendors, or

 

 

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

 

 

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

 

 

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

 

 

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1        A utility party to a sourcing agreement shall
2    immediately retire any emission credits that it receives
3    in connection with the electricity covered by such
4    agreement.
5        Utilities shall maintain adequate records documenting
6    the purchases under the sourcing agreement to comply with
7    this subsection (d) and shall file an accounting with the
8    load forecast that must be filed with the Agency by July 15
9    of each year, in accordance with subsection (d) of Section
10    16-111.5 of the Public Utilities Act.
11        A utility shall be deemed to have complied with the
12    clean coal portfolio standard specified in this subsection
13    (d) if the utility enters into a sourcing agreement as
14    required by this subsection (d).
15        (2) For purposes of this subsection (d), the required
16    execution of sourcing agreements with the initial clean
17    coal facility for a particular year shall be measured as a
18    percentage of the actual amount of electricity
19    (megawatt-hours) supplied by the electric utility to
20    eligible retail customers in the planning year ending
21    immediately prior to the agreement's execution. For
22    purposes of this subsection (d), the amount paid per
23    kilowatthour means the total amount paid for electric
24    service expressed on a per kilowatthour basis. For
25    purposes of this subsection (d), the total amount paid for
26    electric service includes without limitation amounts paid

 

 

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

 

 

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

 

 

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1    sourcing agreement to source electricity from a proposed
2    clean coal facility in Illinois (the "initial clean coal
3    facility") that will have a nameplate capacity of at least
4    500 MW when commercial operation commences, that has a
5    final Clean Air Act permit on June 1, 2009 (the effective
6    date of Public Act 95-1027), and that will meet the
7    definition of clean coal facility in Section 1-10 of this
8    Act when commercial operation commences. The sourcing
9    agreements with this initial clean coal facility shall be
10    subject to both approval of the initial clean coal
11    facility by the General Assembly and satisfaction of the
12    requirements of paragraph (4) of this subsection (d) and
13    shall be executed within 90 days after any such approval
14    by the General Assembly. The Agency and the Commission
15    shall have authority to inspect all books and records
16    associated with the initial clean coal facility during the
17    term of such a sourcing agreement. A utility's sourcing
18    agreement for electricity produced by the initial clean
19    coal facility shall include:
20            (A) a formula contractual price (the "contract
21        price") approved pursuant to paragraph (4) of this
22        subsection (d), which shall:
23                (i) be determined using a cost of service
24            methodology employing either a level or deferred
25            capital recovery component, based on a capital
26            structure consisting of 45% equity and 55% debt,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            facility fails to fully comply with the applicable
2            carbon sequestration requirements in any given
3            year, provided the requisite offsets are
4            purchased. However, the Attorney General, on
5            behalf of the People of the State of Illinois, may
6            specifically enforce the facility's sequestration
7            requirement and the other terms of this contract
8            provision. Compliance with the sequestration
9            requirements and offset purchase requirements
10            specified in paragraph (3) of this subsection (d)
11            shall be reviewed annually by an independent
12            expert retained by the owner of the initial clean
13            coal facility, with the advance written approval
14            of the Attorney General. The Commission may, in
15            the course of the review specified in item (vii),
16            reduce the allowable return on equity for the
17            facility if the facility willfully fails to comply
18            with the carbon capture and sequestration
19            requirements set forth in this item (v);
20                (vi) include limits on, and accordingly
21            provide for modification of, the amount the
22            utility is required to source under the sourcing
23            agreement consistent with paragraph (2) of this
24            subsection (d);
25                (vii) require Commission review: (1) to
26            determine the justness, reasonableness, and

 

 

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

 

 

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1                (x) provide that the owner or owners of the
2            initial clean coal facility, which is the
3            counterparty to such sourcing agreement, shall
4            have the right from time to time to elect whether
5            the obligations of the utility party thereto shall
6            be governed by the power purchase provisions or
7            the contract for differences provisions;
8                (xi) append documentation showing that the
9            formula rate and contract, insofar as they relate
10            to the power purchase provisions, have been
11            approved by the Federal Energy Regulatory
12            Commission pursuant to Section 205 of the Federal
13            Power Act;
14                (xii) provide that any changes to the terms of
15            the contract, insofar as such changes relate to
16            the power purchase provisions, are subject to
17            review under the public interest standard applied
18            by the Federal Energy Regulatory Commission
19            pursuant to Sections 205 and 206 of the Federal
20            Power Act; and
21                (xiii) conform with customary lender
22            requirements in power purchase agreements used as
23            the basis for financing non-utility generators.
24        (4) Effective date of sourcing agreements with the
25    initial clean coal facility. Any proposed sourcing
26    agreement with the initial clean coal facility shall not

 

 

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

 

 

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1        of the sourcing agreements, and an analysis of the
2        likelihood that the initial clean coal facility will
3        commence commercial operation by and be delivering
4        power to the facility's busbar by 2016. To assist in
5        the preparation of its report, the Commission, in
6        consultation with the Agency, may hire one or more
7        experts or consultants, the costs of which shall be
8        paid for by the owner of the initial clean coal
9        facility. The Commission and Agency may begin the
10        process of selecting such experts or consultants prior
11        to receipt of the facility cost report.
12            (iii) General Assembly approval. The proposed
13        sourcing agreements shall not take effect unless,
14        based on the facility cost report and the Commission's
15        report, the General Assembly enacts authorizing
16        legislation approving (A) the projected price, stated
17        in cents per kilowatthour, to be charged for
18        electricity generated by the initial clean coal
19        facility, (B) the projected impact on residential and
20        small business customers' bills over the life of the
21        sourcing agreements, and (C) the maximum allowable
22        return on equity for the project; and
23            (iv) Commission review. If the General Assembly
24        enacts authorizing legislation pursuant to
25        subparagraph (iii) approving a sourcing agreement, the
26        Commission shall, within 90 days of such enactment,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    subtracted shall be established on a cost of service
2    basis. The Agency and the Commission may approve any such
3    utility sourcing agreements that do not exceed cost-based
4    benchmarks developed by the procurement administrator, in
5    consultation with the Commission staff, Agency staff and
6    the procurement monitor, subject to Commission review and
7    approval. The Commission shall have authority to inspect
8    all books and records associated with these clean coal
9    facilities during the term of any such contract.
10        (6) Costs incurred under this subsection (d) or
11    pursuant to a contract entered into under this subsection
12    (d) shall be deemed prudently incurred and reasonable in
13    amount and the electric utility shall be entitled to full
14    cost recovery pursuant to the tariffs filed with the
15    Commission.
16    (d-5) Zero emission standard.
17        (1) Beginning with the delivery year commencing on
18    June 1, 2017, the Agency shall, for electric utilities
19    that serve at least 100,000 retail customers in this
20    State, procure contracts with zero emission facilities
21    that are reasonably capable of generating cost-effective
22    zero emission credits in an amount approximately equal to
23    16% of the actual amount of electricity delivered by each
24    electric utility to retail customers in the State during
25    calendar year 2014. For an electric utility serving fewer
26    than 100,000 retail customers in this State that

 

 

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

 

 

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

 

 

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

 

 

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1        applicable delivery year shall be reduced below the
2        Social Cost of Carbon by the amount ("Price
3        Adjustment") by which the market price index for the
4        applicable delivery year exceeds the baseline market
5        price index for the consecutive 12-month period ending
6        May 31, 2016. If the Price Adjustment is greater than
7        or equal to the Social Cost of Carbon in an applicable
8        delivery year, then no payments shall be due in that
9        delivery year. The components of this calculation are
10        defined as follows:
11                (i) Social Cost of Carbon: The Social Cost of
12            Carbon is $16.50 per megawatthour, which is based
13            on the U.S. Interagency Working Group on Social
14            Cost of Carbon's price in the August 2016
15            Technical Update using a 3% discount rate,
16            adjusted for inflation for each year of the
17            program. Beginning with the delivery year
18            commencing June 1, 2023, the price per
19            megawatthour shall increase by $1 per
20            megawatthour, and continue to increase by an
21            additional $1 per megawatthour each delivery year
22            thereafter.
23                (ii) Baseline market price index: The baseline
24            market price index for the consecutive 12-month
25            period ending May 31, 2016 is $31.40 per
26            megawatthour, which is based on the sum of (aa)

 

 

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

 

 

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1                forward price for the delivery year. The
2                forward market price calculation shall use
3                data published by the Intercontinental
4                Exchange, or its successor.
5                    (bb) Projected capacity prices:
6                        (I) For the delivery years commencing
7                    June 1, 2017, June 1, 2018, and June 1,
8                    2019, the projected capacity price shall
9                    be equal to the sum of (1) 50% multiplied
10                    by the Base Residual Auction, or its
11                    successor, price for the rest of the RTO
12                    zone group as determined by PJM
13                    Interconnection LLC, divided by 24 hours
14                    per day and, (2) 50% multiplied by the
15                    resource auction price determined in the
16                    resource auction administered by the
17                    Midcontinent Independent System Operator,
18                    Inc., in which the largest percentage of
19                    load cleared for Local Resource Zone 4,
20                    divided by 24 hours per day, and where
21                    such price is determined by the
22                    Midcontinent Independent System Operator,
23                    Inc.
24                        (II) For the delivery year commencing
25                    June 1, 2020, and each year thereafter,
26                    the projected capacity price shall be

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            facility shall be excused from performance for the
2            duration of the event, including, but not limited
3            to, delivery of zero emission credits, and no
4            payment shall be due to the zero emission facility
5            during the duration of the event.
6                (ii) A zero emission facility shall be
7            permitted to terminate the contract if legislation
8            is enacted into law by the General Assembly that
9            imposes or authorizes a new tax, special
10            assessment, or fee on the generation of
11            electricity, the ownership or leasehold of a
12            generating unit, or the privilege or occupation of
13            such generation, ownership, or leasehold of
14            generation units by a zero emission facility.
15            However, the provisions of this item (ii) do not
16            apply to any generally applicable tax, special
17            assessment or fee, or requirements imposed by
18            federal law.
19                (iii) A zero emission facility shall be
20            permitted to terminate the contract in the event
21            that the resource requires capital expenditures in
22            excess of $40,000,000 that were neither known nor
23            reasonably foreseeable at the time it executed the
24            contract and that a prudent owner or operator of
25            such resource would not undertake.
26                (iv) A zero emission facility shall be

 

 

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1            permitted to terminate the contract in the event
2            the Nuclear Regulatory Commission terminates the
3            resource's license.
4            (F) If the zero emission facility elects to
5        terminate a contract under subparagraph (E) of this
6        paragraph (1), then the Commission shall reopen the
7        docket in which the Commission approved the zero
8        emission standard procurement plan under subparagraph
9        (C) of this paragraph (1) and, after notice and
10        hearing, enter an order acknowledging the contract
11        termination election if such termination is consistent
12        with the provisions of this subsection (d-5).
13        (2) For purposes of this subsection (d-5), the amount
14    paid per kilowatthour means the total amount paid for
15    electric service expressed on a per kilowatthour basis.
16    For purposes of this subsection (d-5), the total amount
17    paid for electric service includes, without limitation,
18    amounts paid for supply, transmission, distribution,
19    surcharges, and add-on taxes.
20        Notwithstanding the requirements of this subsection
21    (d-5), the contracts executed under this subsection (d-5)
22    shall provide that the total of zero emission credits
23    procured under a procurement plan shall be subject to the
24    limitations of this paragraph (2). For each delivery year,
25    the contractual volume receiving payments in such year
26    shall be reduced for all retail customers based on the

 

 

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

 

 

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

 

 

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

 

 

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1    Average ZEC Payment shall be zero.
2        (4) Cost-effective zero emission credits procured from
3    zero emission facilities shall satisfy the applicable
4    definitions set forth in Section 1-10 of this Act.
5        (5) The electric utility shall retire all zero
6    emission credits used to comply with the requirements of
7    this subsection (d-5).
8        (6) Electric utilities shall be entitled to recover
9    all of the costs associated with the procurement of zero
10    emission credits through an automatic adjustment clause
11    tariff in accordance with subsection (k) and (m) of
12    Section 16-108 of the Public Utilities Act, and the
13    contracts executed under this subsection (d-5) shall
14    provide that the utilities' payment obligations under such
15    contracts shall be reduced if an adjustment is required
16    under subsection (m) of Section 16-108 of the Public
17    Utilities Act.
18        (7) This subsection (d-5) shall become inoperative on
19    January 1, 2028.
20    (d-10) Nuclear Plant Assistance; carbon mitigation
21credits.
22    (1) The General Assembly finds:
23        (A) The health, welfare, and prosperity of all
24    Illinois citizens require that the State of Illinois act
25    to avoid and not increase carbon emissions from electric
26    generation sources while continuing to ensure affordable,

 

 

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1    stable, and reliable electricity to all citizens.
2        (B) Absent immediate action by the State to preserve
3    existing carbon-free energy resources, those resources may
4    retire, and the electric generation needs of Illinois'
5    retail customers may be met instead by facilities that
6    emit significant amounts of carbon pollution and other
7    harmful air pollutants at a high social and economic cost
8    until Illinois is able to develop other forms of clean
9    energy.
10        (C) The General Assembly finds that nuclear power
11    generation is necessary for the State's transition to 100%
12    clean energy, and ensuring continued operation of nuclear
13    plants advances environmental and public health interests
14    through providing carbon-free electricity while reducing
15    the air pollution profile of the Illinois energy
16    generation fleet.
17        (D) The clean energy attributes of nuclear generation
18    facilities support the State in its efforts to achieve
19    100% clean energy.
20        (E) The State currently invests in various forms of
21    clean energy, including, but not limited to, renewable
22    energy, energy efficiency, and low-emission vehicles,
23    among others.
24        (F) The Environmental Protection Agency commissioned
25    an independent audit which provided a detailed assessment
26    of the financial condition of the Illinois nuclear fleet

 

 

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1    to evaluate its financial viability and whether the
2    environmental benefits of such resources were at risk. The
3    report identified the risk of losing the environmental
4    benefits of several specific nuclear units. The report
5    also identified that the LaSalle County Generating Station
6    will continue to operate through 2026 and therefore is not
7    eligible to participate in the carbon mitigation credit
8    program.
9        (G) Nuclear plants provide carbon-free energy, which
10    helps to avoid many health-related negative impacts for
11    Illinois residents.
12        (H) The procurement of carbon mitigation credits
13    representing the environmental benefits of carbon-free
14    generation will further the State's efforts at achieving
15    100% clean energy and decarbonizing the electricity sector
16    in a safe, reliable, and affordable manner. Further, the
17    procurement of carbon emission credits will enhance the
18    health and welfare of Illinois residents through decreased
19    reliance on more highly polluting generation.
20        (I) The General Assembly therefore finds it necessary
21    to establish carbon mitigation credits to ensure decreased
22    reliance on more carbon-intensive energy resources, for
23    transitioning to a fully decarbonized electricity sector,
24    and to help ensure health and welfare of the State's
25    residents.
26    (2) As used in this subsection:

 

 

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1    "Baseline costs" means costs used to establish a customer
2protection cap that have been evaluated through an independent
3audit of a carbon-free energy resource conducted by the
4Environmental Protection Agency that evaluated projected
5annual costs for operation and maintenance expenses; fully
6allocated overhead costs, which shall be allocated using the
7methodology developed by the Institute for Nuclear Power
8Operations; fuel expenditures; nonfuel capital expenditures;
9spent fuel expenditures; a return on working capital; the cost
10of operational and market risks that could be avoided by
11ceasing operation; and any other costs necessary for continued
12operations, provided that "necessary" means, for purposes of
13this definition, that the costs could reasonably be avoided
14only by ceasing operations of the carbon-free energy resource.
15    "Carbon mitigation credit" means a tradable credit that
16represents the carbon emission reduction attributes of one
17megawatt-hour of energy produced from a carbon-free energy
18resource.
19    "Carbon-free energy resource" means a generation facility
20that: (1) is fueled by nuclear power; and (2) is
21interconnected to PJM Interconnection, LLC.
22    (3) Procurement.
23        (A) Beginning with the delivery year commencing on
24    June 1, 2022, the Agency shall, for electric utilities
25    serving at least 3,000,000 retail customers in the State,
26    seek to procure contracts for no more than approximately

 

 

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1    54,500,000 cost-effective carbon mitigation credits from
2    carbon-free energy resources because such credits are
3    necessary to support current levels of carbon-free energy
4    generation and ensure the State meets its carbon dioxide
5    emissions reduction goals. The Agency shall not make a
6    partial award of a contract for carbon mitigation credits
7    covering a fractional amount of a carbon-free energy
8    resource's projected output.
9        (B) Each carbon-free energy resource that intends to
10    participate in a procurement shall be required to submit
11    to the Agency the following information for the resource
12    on or before the date established by the Agency:
13            (i) the in-service date and remaining useful life
14        of the carbon-free energy resource;
15            (ii) the amount of power generated annually for
16        each of the past 10 years, which shall be used to
17        determine the capability of each facility;
18            (iii) a commitment to be reflected in any contract
19        entered into pursuant to this subsection (d-10) to
20        continue operating the carbon-free energy resource at
21        a capacity factor of at least 88% annually on average
22        for the duration of the contract or contracts executed
23        under the procurement held under this subsection
24        (d-10), except in an instance described in
25        subparagraph (E) of paragraph (1) of subsection (d-5)
26        of this Section or made impracticable as a result of

 

 

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1        compliance with law or regulation;
2            (iv) financial need and the risk of loss of the
3        environmental benefits of such resource, which shall
4        include the following information:
5                (I) the carbon-free energy resource's cost
6            projections, expressed on a per megawatt-hour
7            basis, over the next 5 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; nonfuel 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 subitem (I), that the costs could
19            reasonably be avoided only by ceasing operations
20            of the carbon-free energy resource; and
21                (II) the carbon-free energy resource's revenue
22            projections, including energy, capacity, ancillary
23            services, any other direct State support, known or
24            anticipated federal attribute credits, known or
25            anticipated tax credits, and any other direct
26            federal support.

 

 

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1        The information described in this subparagraph (B) may
2    be submitted on a confidential basis and shall be treated
3    and maintained by the Agency, the procurement
4    administrator, and the Commission as confidential and
5    proprietary and exempt from disclosure under subparagraphs
6    (a) and (g) of paragraph (1) of Section 7 of the Freedom of
7    Information Act. The Office of the Attorney General shall
8    have access to, and maintain the confidentiality of, such
9    information pursuant to Section 6.5 of the Attorney
10    General Act.
11        (C) The Agency shall solicit bids for the contracts
12    described in this subsection (d-10) from carbon-free
13    energy resources that have satisfied the requirements of
14    subparagraph (B) of this paragraph (3). The contracts
15    procured pursuant to a procurement event shall reflect,
16    and be subject to, the following terms, requirements, and
17    limitations:
18            (i) Contracts are for delivery of carbon
19        mitigation credits, and are not energy or capacity
20        sales contracts requiring physical delivery. Pursuant
21        to item (iii), contract payments shall fully deduct
22        the value of any monetized federal production tax
23        credits, credits issued pursuant to a federal clean
24        energy standard, and other federal credits if
25        applicable.
26            (ii) Contracts for carbon mitigation credits shall

 

 

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1        commence with the delivery year beginning on June 1,
2        2022 and shall be for a term of 5 delivery years
3        concluding on May 31, 2027.
4            (iii) The price per carbon mitigation credit to be
5        paid under a contract for a given delivery year shall
6        be equal to an accepted bid price less the sum of:
7                (I) one of the following energy price indices,
8            selected by the bidder at the time of the bid for
9            the term of the contract:
10                    (aa) the weighted-average hourly day-ahead
11                price for the applicable delivery year at the
12                busbar of all resources procured pursuant to
13                this subsection (d-10), weighted by actual
14                production from the resources; or
15                    (bb) the projected energy price for the
16                PJM Interconnection, LLC Northern Illinois Hub
17                for the applicable delivery year determined
18                according to subitem (aa) of item (iii) of
19                subparagraph (B) of paragraph (1) of
20                subsection (d-5).
21                (II) the Base Residual Auction Capacity Price
22            for the ComEd zone as determined by PJM
23            Interconnection, LLC, divided by 24 hours per day,
24            for the applicable delivery year for the first 3
25            delivery years, and then any subsequent delivery
26            years unless the PJM Interconnection, LLC applies

 

 

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1            the Minimum Offer Price Rule to participating
2            carbon-free energy resources because they supply
3            carbon mitigation credits pursuant to this Section
4            at which time, upon notice by the carbon-free
5            energy resource to the Commission and subject to
6            the Commission's confirmation, the value under
7            this subitem shall be zero, as further described
8            in the carbon mitigation credit procurement plan;
9            and
10                (III) any value of monetized federal tax
11            credits, direct payments, or similar subsidy
12            provided to the carbon-free energy resource from
13            any unit of government that is not already
14            reflected in energy prices.
15            If the price-per-megawatt-hour calculation
16        performed under item (iii) of this subparagraph (C)
17        for a given delivery year results in a net positive
18        value, then the electric utility counterparty to the
19        contract shall multiply such net value by the
20        applicable contract quantity and remit the amount to
21        the supplier.
22            To protect retail customers from retail rate
23        impacts that may arise upon the initiation of carbon
24        policy changes, if the price-per-megawatt-hour
25        calculation performed under item (iii) of this
26        subparagraph (C) for a given delivery year results in

 

 

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1        a net negative value, then the supplier counterparty
2        to the contract shall multiply such net value by the
3        applicable contract quantity and remit such amount to
4        the electric utility counterparty. The electric
5        utility shall reflect such amounts remitted by
6        suppliers as a credit on its retail customer bills as
7        soon as practicable.
8            (iv) To ensure that retail customers in Northern
9        Illinois do not pay more for carbon mitigation credits
10        than the value such credits provide, and
11        notwithstanding the provisions of this subsection
12        (d-10), the Agency shall not accept bids for contracts
13        that exceed a customer protection cap equal to the
14        baseline costs of carbon-free energy resources.
15            The baseline costs for the applicable year shall
16        be the following:
17                (I) For the delivery year beginning June 1,
18            2022, the baseline costs shall be an amount equal
19            to $30.30 per megawatt-hour.
20                (II) For the delivery year beginning June 1,
21            2023, the baseline costs shall be an amount equal
22            to $32.50 per megawatt-hour.
23                (III) For the delivery year beginning June 1,
24            2024, the baseline costs shall be an amount equal
25            to $33.43 per megawatt-hour.
26                (IV) For the delivery year beginning June 1,

 

 

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1            2025, the baseline costs shall be an amount equal
2            to $33.50 per megawatt-hour.
3                (V) For the delivery year beginning June 1,
4            2026, the baseline costs shall be an amount equal
5            to $34.50 per megawatt-hour.
6            An Environmental Protection Agency consultant
7        forecast, included in a report issued April 14, 2021,
8        projects that a carbon-free energy resource has the
9        opportunity to earn on average approximately $30.28
10        per megawatt-hour, for the sale of energy and capacity
11        during the time period between 2022 and 2027.
12        Therefore, the sale of carbon mitigation credits
13        provides the opportunity to receive an additional
14        amount per megawatt-hour in addition to the projected
15        prices for energy and capacity.
16            Although actual energy and capacity prices may
17        vary from year-to-year, the General Assembly finds
18        that this customer protection cap will help ensure
19        that the cost of carbon mitigation credits will be
20        less than its value, based upon the social cost of
21        carbon identified in the Technical Support Document
22        issued in February 2021 by the U.S. Interagency
23        Working Group on Social Cost of Greenhouse Gases and
24        the PJM Interconnection, LLC carbon dioxide marginal
25        emission rate for 2020, and that a carbon-free energy
26        resource receiving payment for carbon mitigation

 

 

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1        credits receives no more than necessary to keep those
2        units in operation.
3        (D) No later than 7 days after the effective date of
4    this amendatory Act of the 102nd General Assembly, the
5    Agency shall publish its proposed carbon mitigation credit
6    procurement plan. The Plan shall provide that winning bids
7    shall be selected by taking into consideration which
8    resources best match public interest criteria that
9    include, but are not limited to, minimizing carbon dioxide
10    emissions that result from electricity consumed in
11    Illinois and minimizing sulfur dioxide, nitrogen oxide,
12    and particulate matter emissions that adversely affect the
13    citizens of this State. The selection of winning bids
14    shall also take into account the incremental environmental
15    benefits resulting from the procurement or procurements,
16    such as any existing environmental benefits that are
17    preserved by a procurement held under this subsection
18    (d-10) and would cease to exist if the procurement were
19    not held, including the preservation of carbon-free energy
20    resources. For those bidders having the same public
21    interest criteria score, the relative ranking of such
22    bidders shall be determined by price. The Plan shall
23    describe in detail how each public interest factor shall
24    be considered and weighted in the bid selection process to
25    ensure that the public interest criteria are applied to
26    the procurement. The Plan shall, to the extent practical

 

 

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1    and permissible by federal law, ensure that successful
2    bidders make commercially reasonable efforts to apply for
3    federal tax credits, direct payments, or similar subsidy
4    programs that support carbon-free generation and for which
5    the successful bidder is eligible. Upon publishing of the
6    carbon mitigation credit procurement plan, copies of the
7    plan shall be posted and made publicly available on the
8    Agency's website. All interested parties shall have 7 days
9    following the date of posting to provide comment to the
10    Agency on the plan. All comments shall be posted to the
11    Agency's website. Following the end of the comment period,
12    but no more than 19 days later than the effective date of
13    this amendatory Act of the 102nd General Assembly, the
14    Agency shall revise the plan as necessary based on the
15    comments received and file its carbon mitigation credit
16    procurement plan with the Commission.
17        (E) If the Commission determines that the plan is
18    likely to result in the procurement of cost-effective
19    carbon mitigation credits, then the Commission shall,
20    after notice and hearing and opportunity for comment, but
21    no later than 42 days after the Agency filed the plan,
22    approve the plan or approve it with modification. For
23    purposes of this subsection (d-10), "cost-effective" means
24    carbon mitigation credits that are procured from
25    carbon-free energy resources at prices that are within the
26    limits specified in this paragraph (3). As part of the

 

 

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1    Commission's review and acceptance or rejection of the
2    procurement results, the Commission shall, in its public
3    notice of successful bidders:
4            (i) identify how the selected carbon-free energy
5        resources satisfy the public interest criteria
6        described in this paragraph (3) of minimizing carbon
7        dioxide emissions that result from electricity
8        consumed in Illinois and minimizing sulfur dioxide,
9        nitrogen oxide, and particulate matter emissions that
10        adversely affect the citizens of this State;
11            (ii) specifically address how the selection of
12        carbon-free energy resources takes into account the
13        incremental environmental benefits resulting from the
14        procurement, including any existing environmental
15        benefits that are preserved by the procurements held
16        under this amendatory Act of the 102nd General
17        Assembly and would have ceased to exist if the
18        procurements had not been held, such as the
19        preservation of carbon-free energy resources;
20            (iii) quantify the environmental benefit of
21        preserving the carbon-free energy resources procured
22        pursuant to this subsection (d-10), including the
23        following:
24                (I) an assessment value of avoided greenhouse
25            gas emissions measured as the product of the
26            carbon-free energy resources' output over the

 

 

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1            contract term, using generally accepted
2            methodologies for the valuation of avoided
3            emissions; and
4                (II) an assessment of costs of replacement
5            with other carbon-free energy resources and
6            renewable energy resources, including wind and
7            photovoltaic generation, based upon an assessment
8            of the prices paid for renewable energy credits
9            through programs and procurements conducted
10            pursuant to subsection (c) of Section 1-75 of this
11            Act, and the additional storage necessary to
12            produce the same or similar capability of matching
13            customer usage patterns.
14        (F) The procurements described in this paragraph (3),
15    including, but not limited to, the execution of all
16    contracts procured, shall be completed no later than
17    December 3, 2021. The procurement and plan approval
18    processes required by this paragraph (3) shall be
19    conducted in conjunction with the procurement and plan
20    approval processes required by Section 16-111.5 of the
21    Public Utilities Act, to the extent practicable. However,
22    the Agency and Commission may, as appropriate, modify the
23    various dates and timelines under this subparagraph and
24    subparagraphs (D) and (E) of this paragraph (3) to meet
25    the December 3, 2021 contract execution deadline.
26    Following the completion of such procurements, and

 

 

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1    consistent with this paragraph (3), the Agency shall
2    calculate the payments to be made under each contract in a
3    timely fashion.
4        (F-1) Costs incurred by the electric utility pursuant
5    to a contract authorized by this subsection (d-10) shall
6    be deemed prudently incurred and reasonable in amount, and
7    the electric utility shall be entitled to full cost
8    recovery pursuant to a tariff or tariffs filed with the
9    Commission.
10        (G) The counterparty electric utility shall retire all
11    carbon mitigation credits used to comply with the
12    requirements of this subsection (d-10).
13        (H) If a carbon-free energy resource is sold to
14    another owner, the rights, obligations, and commitments
15    under this subsection (d-10) shall continue to the
16    subsequent owner.
17        (I) This subsection (d-10) shall become inoperative on
18    January 1, 2028.
19    (e) The draft procurement plans are subject to public
20comment, as required by Section 16-111.5 of the Public
21Utilities Act.
22    (f) The Agency shall submit the final procurement plan to
23the Commission. The Agency shall revise a procurement plan if
24the Commission determines that it does not meet the standards
25set forth in Section 16-111.5 of the Public Utilities Act.
26    (g) The Agency shall assess fees to each affected utility

 

 

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1to recover the costs incurred in preparation of the annual
2procurement plan for the utility.
3    (h) The Agency shall assess fees to each bidder to recover
4the costs incurred in connection with a competitive
5procurement process.
6    (i) A renewable energy credit, carbon emission credit,
7zero emission credit, or carbon mitigation credit can only be
8used once to comply with a single portfolio or other standard
9as set forth in subsection (c), subsection (d), or subsection
10(d-5) of this Section, respectively. A renewable energy
11credit, carbon emission credit, zero emission credit, or
12carbon mitigation credit cannot be used to satisfy the
13requirements of more than one standard. If more than one type
14of credit is issued for the same megawatt hour of energy, only
15one credit can be used to satisfy the requirements of a single
16standard. After such use, the credit must be retired together
17with any other credits issued for the same megawatt hour of
18energy.
19(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
20102-662, eff. 9-15-21.)
 
21    (20 ILCS 3855/1-129 new)
22    Sec. 1-129. Policy study.
23    (a) The General Assembly finds that:
24        (1) in 2021, Illinois became the first state in the
25    Midwest to mandate a clean energy future when it enacted

 

 

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1    the Climate and Equitable Jobs Act (Public Act 102-662);
2        (2) through the Climate and Equitable Jobs Act,
3    Illinois established a plan to completely decarbonize its
4    energy sector by 2050 in an equitable manner that invests
5    in the State's workforce;
6        (3) technology in the energy sector continues to
7    advance creating cleaner and more efficient options to
8    help the State attain the target of 50% renewable energy
9    by 2040; and
10        (4) while numerous legislative proposals purport to
11    help the State on its path to equitably attain 100% clean
12    energy, it is important to have a neutral party with
13    relevant expertise evaluate each proposal to ensure it is
14    consistent with the State's goals and maximizes benefits
15    to Illinois residents.
16    (b) The General Assembly intends:
17        (1) to prioritize the public interest over the profit
18    motives of utilities and private developers; and
19        (2) to invest in projects that reduce harmful
20    emissions and contribute to the clean economy.
21    (c) The Agency shall commission and publish a policy study
22to evaluate the potential impacts of the proposals described
23in subsection (g). The potential impacts may include, but are
24not limited to, support for Illinois' decarbonization goals,
25the environment, grid reliability, carbon and other pollutant
26emissions, resource adequacy, long-term and short-term

 

 

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1electric rates, environmental justice communities, jobs, and
2the economy. Where applicable, the study shall address the
3impact of a proposal with respect to reports by the
4Midcontinent Independent System Operator, PJM, and North
5American Electric Reliability Corporation staff that Illinois
6has begun to experience resource adequacy issues.
7    (d) The Agency shall retain the services of technical and
8policy experts with energy market and other relevant fields of
9expertise. The technical and policy experts may include the
10existing planning and procurement consultant and applicable
11subcontractors and the procurement administrator and
12applicable subcontractors. The Illinois Commerce Commission,
13the Illinois Environmental Protection Agency, and the
14Department of Commerce and Economic Opportunity shall provide
15support to and consult with the Agency. The Agency may consult
16with other State agencies, commissions, or task forces as
17needed. The Agency may consult with and seek assistance from
18the Regional Transmission Organizations PJM and MISO.
19    (e) The Agency may solicit information, including
20confidential or proprietary information, from entities likely
21to be impacted by the proposals described in subsection (g)
22for purposes of this study. Any information designated as
23confidential or proprietary information by the entity
24providing the information shall be kept confidential by the
25Agency, its consultants, and its contractors and is not
26subject to disclosure under the Freedom of Information Act.

 

 

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1    (f) The Agency shall publish a final policy study no later
2than March 1, 2024 and suitable copies shall be delivered to
3the Governor and members of the General Assembly. Prior to
4publishing the final policy study, the Agency shall publish a
5preliminary draft of the policy study and provide for a 20-day
6open public comment period. The Agency shall review public
7comments and publish a final policy study no later than 20 days
8after the public comment period ends. The policy study shall
9include policy recommendations to the General Assembly.
10    (g) The policy study shall evaluate the following
11proposals and may consider or suggest additional or
12alternative items:
13        (1) House Bill 2132 of the 103rd General Assembly as
14    it passed out of the House on March 24, 2023 or a similar
15    pilot program to establish one new utility-scale offshore
16    wind project capable of producing at least 700,000
17    megawatt hours annually for at least 20 years in Lake
18    Michigan that includes an equity and inclusion plan to
19    create job opportunities for underrepresented populations
20    in addition to equity investment eligible communities and
21    a fully executed project labor agreement. The pilot
22    program may result in an increase in the amounts paid by
23    eligible retail customers in connection with electric
24    service that shall not exceed 0.25% of the amount paid per
25    kilowatt hour by those customers during the year ending
26    May 31, 2009.

 

 

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1        (2) Senate Bill 1587 and amendments to Senate Bill
2    1587 of the 103rd General Assembly filed prior to May 31,
3    2023 or a similar proposal for the deployment of energy
4    storage systems supported by the State through the
5    development of energy storage credit targets for the
6    Agency to procure on behalf of Illinois electric utilities
7    from privately owned, large scale energy storage providers
8    using energy storage contracts of at least 15 year
9    durations based on a competitive energy storage
10    procurement plan developed by the Agency designed to
11    enhance overall grid reliability, flexibility and
12    efficiency, and to lower electricity prices. The plan must
13    require participants to comply with the equity
14    accountability system requirements in subsection (c-10) of
15    Section 1-75 and to submit proof of project labor
16    agreements. For purposes of this policy study, it should
17    be assumed that the costs associated with procuring energy
18    storage credits shall be recovered through tariffed
19    charges assessed across all retail customers in a uniform
20    cents per kilowatt hour charge. In addition to large scale
21    energy storage, the proposal shall also include the
22    creation of distributed level energy storage programs
23    through utility tariffs as approved by the Illinois
24    Commerce Commission. The programs shall include a
25    residential and a commercial storage program that would
26    allow customer-sited batteries to provide grid benefits

 

 

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1    and cost-savings to ratepayers. The proposal shall also
2    include a community solar energy storage program intended
3    to serve as a peak reduction program by utilizing
4    community solar paired storage projects deployed daily in
5    summer months during peak hours. The installation of the
6    energy storage systems associated with these distributed
7    renewable systems must comply with the prevailing wage
8    requirements described in subparagraph (Q) of paragraph
9    (1) of subsection (c) of Section 1-75. The policy study
10    shall include a review of the ability of coal-fueled
11    generating plant sites located in Illinois that have been
12    closed since 2016 or are scheduled to be closed by 2030 to
13    support the installation of energy storage systems and
14    potential associated interconnection costs. This review
15    shall include: (i) whether those sites are already in a
16    regional transmission organization interconnection queue,
17    including MISO's replacement power interconnection queue,
18    or would be submitted to the replacement power
19    interconnection queue no later than September 1, 2023,
20    and, if a site is in a queue, the site's position in the
21    queue; and (ii) how soon those sites could support
22    development and installation of energy storage systems and
23