Sen. Bill Cunningham

Filed: 5/19/2023

 

 


 

 


 
10300SB1587sam001LRB103 27840 SPS 61722 a

1
AMENDMENT TO SENATE BILL 1587

2    AMENDMENT NO. ______. Amend Senate Bill 1587 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-5, 1-10, 1-20, and 1-75 and by adding
6Section 1-93 and 1-94 as follows:
 
7    (20 ILCS 3855/1-5)
8    Sec. 1-5. Legislative declarations and findings. The
9General Assembly finds and declares:
10        (1) The health, welfare, and prosperity of all
11    Illinois residents require the provision of adequate,
12    reliable, affordable, efficient, and environmentally
13    sustainable electric service at the lowest total cost over
14    time, taking into account any benefits of price stability.
15        (1.5) To provide the highest quality of life for the
16    residents of Illinois and to provide for a clean and

 

 

10300SB1587sam001- 2 -LRB103 27840 SPS 61722 a

1    healthy environment, it is the policy of this State to
2    rapidly transition to 100% clean energy by 2050.
3        (2) (Blank).
4        (3) (Blank).
5        (4) It is necessary to improve the process of
6    procuring electricity to serve Illinois residents, to
7    promote investment in energy efficiency and
8    demand-response measures, and to maintain and support
9    development of clean coal technologies, generation
10    resources that operate at all hours of the day and under
11    all weather conditions, zero emission facilities, and
12    renewable resources.
13        (5) Procuring a diverse electricity supply portfolio
14    will ensure the lowest total cost over time for adequate,
15    reliable, efficient, and environmentally sustainable
16    electric service.
17        (6) Including renewable resources and zero emission
18    credits from zero emission facilities in that portfolio
19    will reduce long-term direct and indirect costs to
20    consumers by decreasing environmental impacts and by
21    avoiding or delaying the need for new generation,
22    transmission, and distribution infrastructure. Developing
23    new renewable energy resources in Illinois, including
24    brownfield solar projects and community solar projects,
25    will help to diversify Illinois electricity supply, avoid
26    and reduce pollution, reduce peak demand, and enhance

 

 

10300SB1587sam001- 3 -LRB103 27840 SPS 61722 a

1    public health and well-being of Illinois residents.
2        (7) Developing community solar projects in Illinois
3    will help to expand access to renewable energy resources
4    to more Illinois residents.
5        (8) Developing brownfield solar projects in Illinois
6    will help return blighted or contaminated land to
7    productive use while enhancing public health and the
8    well-being of Illinois residents, including those in
9    environmental justice communities.
10        (9) Energy efficiency, demand-response measures, zero
11    emission energy, and renewable energy are resources
12    currently underused in Illinois. These resources should be
13    used, when cost effective, to reduce costs to consumers,
14    improve reliability, and improve environmental quality and
15    public health.
16        (10) The State should encourage the use of advanced
17    clean coal technologies that capture and sequester carbon
18    dioxide emissions to advance environmental protection
19    goals and to demonstrate the viability of coal and
20    coal-derived fuels in a carbon-constrained economy.
21        (10.5) The State should encourage the development of
22    interregional high voltage direct current (HVDC)
23    transmission lines that benefit Illinois. All ratepayers
24    in the State served by the regional transmission
25    organization where the HVDC converter station is
26    interconnected benefit from the long-term price stability

 

 

10300SB1587sam001- 4 -LRB103 27840 SPS 61722 a

1    and market access provided by interregional HVDC
2    transmission facilities. The benefits to Illinois include:
3    reduction in wholesale power prices; access to lower-cost
4    markets; enabling the integration of additional renewable
5    generating units within the State through near
6    instantaneous dispatchability and the provision of
7    ancillary services; creating good-paying union jobs in
8    Illinois; and, enhancing grid reliability and climate
9    resilience via HVDC facilities that are installed
10    underground.
11        (10.6) The health, welfare, and safety of the people
12    of the State are advanced by developing new HVDC
13    transmission lines predominantly along transportation
14    rights-of-way, with an HVDC converter station that is
15    located in the service territory of a public utility as
16    defined in Section 3-105 of the Public Utilities Act
17    serving more than 3,000,000 retail customers, and with a
18    project labor agreement as defined in Section 1-10 of this
19    Act.
20        (11) The General Assembly enacted Public Act 96-0795
21    to reform the State's purchasing processes, recognizing
22    that government procurement is susceptible to abuse if
23    structural and procedural safeguards are not in place to
24    ensure independence, insulation, oversight, and
25    transparency.
26        (12) The principles that underlie the procurement

 

 

10300SB1587sam001- 5 -LRB103 27840 SPS 61722 a

1    reform legislation apply also in the context of power
2    purchasing.
3        (13) To ensure that the benefits of installing
4    renewable resources are available to all Illinois
5    residents and located across the State, subject to
6    appropriation, it is necessary for the Agency to provide
7    public information and educational resources on how
8    residents can benefit from the expansion of renewable
9    energy in Illinois and participate in the Illinois Solar
10    for All Program established in Section 1-56, the
11    Adjustable Block program established in Section 1-75, the
12    job training programs established by paragraph (1) of
13    subsection (a) of Section 16-108.12 of the Public
14    Utilities Act, and the programs and resources established
15    by the Energy Transition Act.
16        (14) The deployment of energy storage systems is
17    necessary to achieve high levels of renewable energy, to
18    avoid the use of peaking fossil fuel plants, and to
19    maintain an efficient, reliable, and resilient electric
20    grid.
21    The General Assembly therefore finds that it is necessary
22to create the Illinois Power Agency and that the goals and
23objectives of that Agency are to accomplish each of the
24following:
25        (A) Develop electricity procurement plans to ensure
26    adequate, reliable, affordable, efficient, and

 

 

10300SB1587sam001- 6 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 7 -LRB103 27840 SPS 61722 a

1        (F) Continue to review its policies and practices to
2    determine how best to meet its mission of providing the
3    lowest cost power to the greatest number of people, at any
4    given point in time, in accordance with applicable law.
5        (G) Operate in a structurally insulated, independent,
6    and transparent fashion so that nothing impedes the
7    Agency's mission to secure power at the best prices the
8    market will bear, provided that the Agency meets all
9    applicable legal requirements.
10        (H) Implement renewable energy procurement and
11    training programs throughout the State to diversify
12    Illinois electricity supply, improve reliability, avoid
13    and reduce pollution, reduce peak demand, and enhance
14    public health and well-being of Illinois residents,
15    including low-income residents.
16        (I) Implement procurements to cost-effectively deploy
17    contracted energy storage systems.
18(Source: P.A. 102-662, eff. 9-15-21.)
 
19    (20 ILCS 3855/1-10)
20    Sec. 1-10. Definitions.
21    "Agency" means the Illinois Power Agency.
22    "Agency loan agreement" means any agreement pursuant to
23which the Illinois Finance Authority agrees to loan the
24proceeds of revenue bonds issued with respect to a project to
25the Agency upon terms providing for loan repayment

 

 

10300SB1587sam001- 8 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 9 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 10 -LRB103 27840 SPS 61722 a

1facility would otherwise emit if, at the time construction
2commences, the facility is scheduled to commence operation
3after 2017. The power block of the clean coal facility shall
4not exceed allowable emission rates for sulfur dioxide,
5nitrogen oxides, carbon monoxide, particulates and mercury for
6a natural gas-fired combined-cycle facility the same size as
7and in the same location as the clean coal facility at the time
8the clean coal facility obtains an approved air permit. All
9coal used by a clean coal facility shall have high volatile
10bituminous rank and greater than 1.7 pounds of sulfur per
11million Btu btu content, unless the clean coal facility does
12not use gasification technology and was operating as a
13conventional coal-fired electric generating facility on June
141, 2009 (the effective date of Public Act 95-1027).
15    "Clean coal SNG brownfield facility" means a facility that
16(1) has commenced construction by July 1, 2015 on an urban
17brownfield site in a municipality with at least 1,000,000
18residents; (2) uses a gasification process to produce
19substitute natural gas; (3) uses coal as at least 50% of the
20total feedstock over the term of any sourcing agreement with a
21utility and the remainder of the feedstock may be either
22petroleum coke or coal, with all such coal having a high
23bituminous rank and greater than 1.7 pounds of sulfur per
24million Btu content unless the facility reasonably determines
25that it is necessary to use additional petroleum coke to
26deliver additional consumer savings, in which case the

 

 

10300SB1587sam001- 11 -LRB103 27840 SPS 61722 a

1facility shall use coal for at least 35% of the total feedstock
2over the term of any sourcing agreement; and (4) captures and
3sequesters at least 85% of the total carbon dioxide emissions
4that the facility would otherwise emit.
5    "Clean coal SNG facility" means a facility that uses a
6gasification process to produce substitute natural gas, that
7sequesters at least 90% of the total carbon dioxide emissions
8that the facility would otherwise emit, that uses at least 90%
9coal as a feedstock, with all such coal having a high
10bituminous rank and greater than 1.7 pounds of sulfur per
11million Btu btu content, and that has a valid and effective
12permit to construct emission sources and air pollution control
13equipment and approval with respect to the federal regulations
14for Prevention of Significant Deterioration of Air Quality
15(PSD) for the plant pursuant to the federal Clean Air Act;
16provided, however, a clean coal SNG brownfield facility shall
17not be a clean coal SNG facility.
18    "Clean energy" means energy generation that is 90% or
19greater free of carbon dioxide emissions.
20    "Commission" means the Illinois Commerce Commission.
21    "Community renewable generation project" means an electric
22generating facility that:
23        (1) is powered by wind, solar thermal energy,
24    photovoltaic cells or panels, biodiesel, crops and
25    untreated and unadulterated organic waste biomass, and
26    hydropower that does not involve new construction or

 

 

10300SB1587sam001- 12 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 13 -LRB103 27840 SPS 61722 a

1    escrow, trustee, collateral agency, interest rate hedging,
2    interest rate swap, capitalized interest, contingency, as
3    required by lenders, and other financing costs, and other
4    expenses for professional services; and
5        (5) the costs of plans, specifications, site study and
6    investigation, installation, surveys, other Agency costs
7    and estimates of costs, and other expenses necessary or
8    incidental to determining the feasibility of any project,
9    together with such other expenses as may be necessary or
10    incidental to the financing, insuring, acquisition, and
11    construction of a specific project and starting up,
12    commissioning, and placing that project in operation.
13    "Daily energy volatility index" means a calculation, for a
14contracted energy storage system, of the difference in average
15price per megawatt-hour between the average of the "X"
16highest-priced hours and the "X" lowest-priced hours for each
17day in the day-ahead energy market of the energy storage
18duration of the contracted energy storage system for each day
19in the day-ahead energy market of the applicable pricing node
20of the independent system operator or regional transmission
21organization, where "X" equals the energy storage duration of
22the contracted energy storage system.
23    "Delivery services" has the same definition as found in
24Section 16-102 of the Public Utilities Act.
25    "Delivery year" means the consecutive 12-month period
26beginning June 1 of a given year and ending May 31 of the

 

 

10300SB1587sam001- 14 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 15 -LRB103 27840 SPS 61722 a

1        (4) (blank).
2    "Energy efficiency" means measures that reduce the amount
3of electricity or natural gas consumed in order to achieve a
4given end use. "Energy efficiency" includes voltage
5optimization measures that optimize the voltage at points on
6the electric distribution voltage system and thereby reduce
7electricity consumption by electric customers' end use
8devices. "Energy efficiency" also includes measures that
9reduce the total Btus of electricity, natural gas, and other
10fuels needed to meet the end use or uses.
11    "Energy storage capacity" means the nameplate capacity of
12a contracted energy storage system, measured in megawatts AC.
13    "Energy storage credit" means a fungible credit that
14represents the flexibility value of a contracted energy
15storage system. An energy storage credit is produced for each
16one megawatt of energy storage capacity multiplied by the
17energy storage duration each day that the contracted energy
18storage system is interconnected with wholesale electricity
19markets.
20    "Energy storage credit counterparty" has the same meaning
21as "public utility" as defined in Section 3-105 of the Public
22Utilities Act.
23    "Energy storage credit value" means a price, measured in
24dollars per credit, calculated for each day for a contracted
25energy storage system by subtracting the daily energy
26volatility index and the reference capacity price from the

 

 

10300SB1587sam001- 16 -LRB103 27840 SPS 61722 a

1energy storage strike price.
2    "Energy storage duration" means the number of hours over
3which an energy storage system is capable of continuously
4discharging energy at its full energy storage capacity.
5    "Energy storage strike price" means a contract price for
6energy storage credits from a contracted energy storage
7system.
8    "Energy storage system" means commercially available
9technology that is capable of absorbing energy and storing it
10for use at a later time, including, but not limited to,
11electrochemical and electromechanical technologies. "Energy
12storage system" does not include technologies that require
13combustion.
14    "Electric utility" has the same definition as found in
15Section 16-102 of the Public Utilities Act.
16    "Equity investment eligible community" or "eligible
17community" are synonymous and mean the geographic areas
18throughout Illinois which would most benefit from equitable
19investments by the State designed to combat discrimination.
20Specifically, the eligible communities shall be defined as the
21following areas:
22        (1) R3 Areas as established pursuant to Section 10-40
23    of the Cannabis Regulation and Tax Act, where residents
24    have historically been excluded from economic
25    opportunities, including opportunities in the energy
26    sector; and

 

 

10300SB1587sam001- 17 -LRB103 27840 SPS 61722 a

1        (2) environmental Environmental justice communities,
2    as defined by the Illinois Power Agency pursuant to the
3    Illinois Power Agency Act, where residents have
4    historically been subject to disproportionate burdens of
5    pollution, including pollution from the energy sector.
6    "Equity eligible persons" or "eligible persons" means
7persons who would most benefit from equitable investments by
8the State designed to combat discrimination, specifically:
9        (1) persons who graduate from or are current or former
10    participants in the Clean Jobs Workforce Network Program,
11    the Clean Energy Contractor Incubator Program, the
12    Illinois Climate Works Preapprenticeship Program,
13    Returning Residents Clean Jobs Training Program, or the
14    Clean Energy Primes Contractor Accelerator Program, and
15    the solar training pipeline and multi-cultural jobs
16    program created in paragraphs (a)(1) and (a)(3) of Section
17    16-208.12 16-108.21 of the Public Utilities Act;
18        (2) persons who are graduates of or currently enrolled
19    in the foster care system;
20        (3) persons who were formerly incarcerated;
21        (4) persons whose primary residence is in an equity
22    investment eligible community.
23    "Equity eligible contractor" means a business that is
24majority-owned by eligible persons, or a nonprofit or
25cooperative that is majority-governed by eligible persons, or
26is a natural person that is an eligible person offering

 

 

10300SB1587sam001- 18 -LRB103 27840 SPS 61722 a

1personal services as an independent contractor.
2    "Facility" means an electric generating unit or a
3co-generating unit that produces electricity along with
4related equipment necessary to connect the facility to an
5electric transmission or distribution system.
6    "General contractor Contractor" means the entity or
7organization with main responsibility for the building of a
8construction project and who is the party signing the prime
9construction contract for the project.
10    "Governmental aggregator" means one or more units of local
11government that individually or collectively procure
12electricity to serve residential retail electrical loads
13located within its or their jurisdiction.
14    "High voltage direct current converter station" means the
15collection of equipment that converts direct current energy
16from a high voltage direct current transmission line into
17alternating current using Voltage Source Conversion technology
18and that is interconnected with transmission or distribution
19assets located in Illinois.
20    "High voltage direct current renewable energy credit"
21means a renewable energy credit associated with a renewable
22energy resource where the renewable energy resource has
23entered into a contract to transmit the energy associated with
24such renewable energy credit over high voltage direct current
25transmission facilities.
26    "High voltage direct current transmission facilities"

 

 

10300SB1587sam001- 19 -LRB103 27840 SPS 61722 a

1means the collection of installed equipment that converts
2alternating current energy in one location to direct current
3and transmits that direct current energy to a high voltage
4direct current converter station using Voltage Source
5Conversion technology. "High voltage direct current
6transmission facilities" includes the high voltage direct
7current converter station itself and associated high voltage
8direct current transmission lines. Notwithstanding the
9preceding, after September 15, 2021 (the effective date of
10Public Act 102-662) this amendatory Act of the 102nd General
11Assembly, an otherwise qualifying collection of equipment does
12not qualify as high voltage direct current transmission
13facilities unless its developer entered into a project labor
14agreement, is capable of transmitting electricity at 525kv
15with an Illinois converter station located and interconnected
16in the region of the PJM Interconnection, LLC, and the system
17does not operate as a public utility, as that term is defined
18in Section 3-105 of the Public Utilities Act.
19    "Index price" means the real-time energy settlement price
20at the applicable Illinois trading hub, such as PJM-NIHUB or
21MISO-IL, for a given settlement period.
22    "Indexed renewable energy credit" means a tradable credit
23that represents the environmental attributes of one megawatt
24hour of energy produced from a renewable energy resource, the
25price of which shall be calculated by subtracting the strike
26price offered by a new utility-scale wind project or a new

 

 

10300SB1587sam001- 20 -LRB103 27840 SPS 61722 a

1utility-scale photovoltaic project from the index price in a
2given settlement period.
3    "Indexed renewable energy credit counterparty" has the
4same meaning as "public utility" as defined in Section 3-105
5of the Public Utilities Act.
6    "Local government" means a unit of local government as
7defined in Section 1 of Article VII of the Illinois
8Constitution.
9    "Long-duration energy storage" means an energy storage
10system capable of dispatching energy at its full rated
11capacity for 10 or more hours.
12    "Long-term energy storage contract" means a contract for
13the purchase of energy storage credits generated by an energy
14storage system for a period of at least 15 years.
15    "Multi-day energy storage" means an energy storage system
16capable of dispatching energy at its full rated capacity for
17greater than 24 hours.
18    "Municipality" means a city, village, or incorporated
19town.
20    "Municipal utility" means a public utility owned and
21operated by any subdivision or municipal corporation of this
22State.
23    "Nameplate capacity" means the aggregate inverter
24nameplate capacity in kilowatts AC. The capacity of an energy
25storage system associated with a renewable energy resource
26shall not be considered in the calculation of nameplate

 

 

10300SB1587sam001- 21 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 22 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 23 -LRB103 27840 SPS 61722 a

1Auction, or their successor resource adequacy constructs. The
2reference capacity price shall be calculated by adjusting the
3currently prevailing clearing price in the MISO Planning
4Resource Auction or the PJM Base Residual Action, or their
5successor resource adequacy constructs, by the accredited
6capacity of the contracted energy storage system and
7converting the units to megawatt-hours.
8    "Renewable energy credit" means a tradable credit that
9represents the environmental attributes of one megawatt hour
10of energy produced from a renewable energy resource.
11    "Renewable energy resources" includes energy and its
12associated renewable energy credit or renewable energy credits
13from wind, solar thermal energy, photovoltaic cells and
14panels, biodiesel, anaerobic digestion, crops and untreated
15and unadulterated organic waste biomass, and hydropower that
16does not involve new construction or significant expansion of
17hydropower dams, waste heat to power systems, or qualified
18combined heat and power systems. For purposes of this Act,
19landfill gas produced in the State is considered a renewable
20energy resource. "Renewable energy resources" does not include
21the incineration or burning of tires, garbage, general
22household, institutional, and commercial waste, industrial
23lunchroom or office waste, landscape waste, railroad
24crossties, utility poles, or construction or demolition
25debris, other than untreated and unadulterated waste wood.
26"Renewable energy resources" also includes high voltage direct

 

 

10300SB1587sam001- 24 -LRB103 27840 SPS 61722 a

1current renewable energy credits and the associated energy
2converted to alternating current by a high voltage direct
3current converter station to the extent that: (1) the
4generator of such renewable energy resource contracted with a
5third party to transmit the energy over the high voltage
6direct current transmission facilities, and (2) the
7third-party contracting for delivery of renewable energy
8resources over the high voltage direct current transmission
9facilities have ownership rights over the unretired associated
10high voltage direct current renewable energy credit.
11    "Retail customer" has the same definition as found in
12Section 16-102 of the Public Utilities Act.
13    "Revenue bond" means any bond, note, or other evidence of
14indebtedness issued by the Authority, the principal and
15interest of which is payable solely from revenues or income
16derived from any project or activity of the Agency.
17    "Sequester" means permanent storage of carbon dioxide by
18injecting it into a saline aquifer, a depleted gas reservoir,
19or an oil reservoir, directly or through an enhanced oil
20recovery process that may involve intermediate storage,
21regardless of whether these activities are conducted by a
22clean coal facility, a clean coal SNG facility, a clean coal
23SNG brownfield facility, or a party with which a clean coal
24facility, clean coal SNG facility, or clean coal SNG
25brownfield facility has contracted for such purposes.
26    "Service area" has the same definition as found in Section

 

 

10300SB1587sam001- 25 -LRB103 27840 SPS 61722 a

116-102 of the Public Utilities Act.
2    "Settlement period" means the period of time utilized by
3MISO and PJM and their successor organizations as the basis
4for settlement calculations in the real-time energy market.
5    "Sourcing agreement" means (i) in the case of an electric
6utility, an agreement between the owner of a clean coal
7facility and such electric utility, which agreement shall have
8terms and conditions meeting the requirements of paragraph (3)
9of subsection (d) of Section 1-75, (ii) in the case of an
10alternative retail electric supplier, an agreement between the
11owner of a clean coal facility and such alternative retail
12electric supplier, which agreement shall have terms and
13conditions meeting the requirements of Section 16-115(d)(5) of
14the Public Utilities Act, and (iii) in case of a gas utility,
15an agreement between the owner of a clean coal SNG brownfield
16facility and the gas utility, which agreement shall have the
17terms and conditions meeting the requirements of subsection
18(h-1) of Section 9-220 of the Public Utilities Act.
19    "Strike price" means a contract price for energy and
20renewable energy credits from a new utility-scale wind project
21or a new utility-scale photovoltaic project.
22    "Subscriber" means a person who (i) takes delivery service
23from an electric utility, and (ii) has a subscription of no
24less than 200 watts to a community renewable generation
25project that is located in the electric utility's service
26area. No subscriber's subscriptions may total more than 40% of

 

 

10300SB1587sam001- 26 -LRB103 27840 SPS 61722 a

1the nameplate capacity of an individual community renewable
2generation project. Entities that are affiliated by virtue of
3a common parent shall not represent multiple subscriptions
4that total more than 40% of the nameplate capacity of an
5individual community renewable generation project.
6    "Subscription" means an interest in a community renewable
7generation project expressed in kilowatts, which is sized
8primarily to offset part or all of the subscriber's
9electricity usage.
10    "Substitute natural gas" or "SNG" means a gas manufactured
11by gasification of hydrocarbon feedstock, which is
12substantially interchangeable in use and distribution with
13conventional natural gas.
14    "Total resource cost test" or "TRC test" means a standard
15that is met if, for an investment in energy efficiency or
16demand-response measures, the benefit-cost ratio is greater
17than one. The benefit-cost ratio is the ratio of the net
18present value of the total benefits of the program to the net
19present value of the total costs as calculated over the
20lifetime of the measures. A total resource cost test compares
21the sum of avoided electric utility costs, representing the
22benefits that accrue to the system and the participant in the
23delivery of those efficiency measures and including avoided
24costs associated with reduced use of natural gas or other
25fuels, avoided costs associated with reduced water
26consumption, and avoided costs associated with reduced

 

 

10300SB1587sam001- 27 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 28 -LRB103 27840 SPS 61722 a

1        (1) generates electricity using wind; and
2        (2) has a nameplate capacity that is greater than
3    5,000 kilowatts.
4    "Waste Heat to Power Systems" means systems that capture
5and generate electricity from energy that would otherwise be
6lost to the atmosphere without the use of additional fuel.
7    "Zero emission credit" means a tradable credit that
8represents the environmental attributes of one megawatt hour
9of energy produced from a zero emission facility.
10    "Zero emission facility" means a facility that: (1) is
11fueled by nuclear power; and (2) is interconnected with PJM
12Interconnection, LLC or the Midcontinent Independent System
13Operator, Inc., or their successors.
14(Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
 
15    (20 ILCS 3855/1-20)
16    Sec. 1-20. General powers and duties of the Agency.
17    (a) The Agency is authorized to do each of the following:
18        (1) Develop electricity procurement plans to ensure
19    adequate, reliable, affordable, efficient, and
20    environmentally sustainable electric service at the lowest
21    total cost over time, taking into account any benefits of
22    price stability, for electric utilities that on December
23    31, 2005 provided electric service to at least 100,000
24    customers in Illinois and for small multi-jurisdictional
25    electric utilities that (A) on December 31, 2005 served

 

 

10300SB1587sam001- 29 -LRB103 27840 SPS 61722 a

1    less than 100,000 customers in Illinois and (B) request a
2    procurement plan for their Illinois jurisdictional load.
3    Except as provided in paragraph (1.5) of this subsection
4    (a), the electricity procurement plans shall be updated on
5    an annual basis and shall include electricity generated
6    from renewable resources sufficient to achieve the
7    standards specified in this Act. Beginning with the
8    delivery year commencing June 1, 2017, develop procurement
9    plans to include zero emission credits generated from zero
10    emission facilities sufficient to achieve the standards
11    specified in this Act. Beginning with the delivery year
12    commencing on June 1, 2022, the Agency is authorized to
13    develop carbon mitigation credit procurement plans to
14    include carbon mitigation credits generated from
15    carbon-free energy resources sufficient to achieve the
16    standards specified in this Act.
17        (1.5) Develop a long-term renewable resources
18    procurement plan in accordance with subsection (c) of
19    Section 1-75 of this Act for renewable energy credits in
20    amounts sufficient to achieve the standards specified in
21    this Act for delivery years commencing June 1, 2017 and
22    for the programs and renewable energy credits specified in
23    Section 1-56 of this Act. Electricity procurement plans
24    for delivery years commencing after May 31, 2017, shall
25    not include procurement of renewable energy resources.
26        (2) Conduct competitive procurement processes to

 

 

10300SB1587sam001- 30 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 31 -LRB103 27840 SPS 61722 a

1        (3) Develop electric generation and co-generation
2    facilities that use indigenous coal or renewable
3    resources, or both, financed with bonds issued by the
4    Illinois Finance Authority.
5        (4) Supply electricity from the Agency's facilities at
6    cost to one or more of the following: municipal electric
7    systems, governmental aggregators, or rural electric
8    cooperatives in Illinois.
9        (5) Conduct competitive solicitations to procure
10    energy storage credits sufficient to achieve, at minimum,
11    the energy storage standard under Section 1-93 of this
12    Act.
13    (b) Except as otherwise limited by this Act, the Agency
14has all of the powers necessary or convenient to carry out the
15purposes and provisions of this Act, including without
16limitation, each of the following:
17        (1) To have a corporate seal, and to alter that seal at
18    pleasure, and to use it by causing it or a facsimile to be
19    affixed or impressed or reproduced in any other manner.
20        (2) To use the services of the Illinois Finance
21    Authority necessary to carry out the Agency's purposes.
22        (3) To negotiate and enter into loan agreements and
23    other agreements with the Illinois Finance Authority.
24        (4) To obtain and employ personnel and hire
25    consultants that are necessary to fulfill the Agency's
26    purposes, and to make expenditures for that purpose within

 

 

10300SB1587sam001- 32 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 33 -LRB103 27840 SPS 61722 a

1        (9) To make and execute agreements, contracts, and
2    other instruments necessary or convenient in the exercise
3    of the powers and functions of the Agency under this Act,
4    including contracts with any person, including personal
5    service contracts, or with any local government, State
6    agency, or other entity; and all State agencies and all
7    local governments are authorized to enter into and do all
8    things necessary to perform any such agreement, contract,
9    or other instrument with the Agency. No such agreement,
10    contract, or other instrument shall exceed 40 years.
11        (10) To lend money, invest and reinvest its funds in
12    accordance with the Public Funds Investment Act, and take
13    and hold real and personal property as security for the
14    payment of funds loaned or invested.
15        (11) To borrow money at such rate or rates of interest
16    as the Agency may determine, issue its notes, bonds, or
17    other obligations to evidence that indebtedness, and
18    secure any of its obligations by mortgage or pledge of its
19    real or personal property, machinery, equipment,
20    structures, fixtures, inventories, revenues, grants, and
21    other funds as provided or any interest therein, wherever
22    situated.
23        (12) To enter into agreements with the Illinois
24    Finance Authority to issue bonds whether or not the income
25    therefrom is exempt from federal taxation.
26        (13) To procure insurance against any loss in

 

 

10300SB1587sam001- 34 -LRB103 27840 SPS 61722 a

1    connection with its properties or operations in such
2    amount or amounts and from such insurers, including the
3    federal government, as it may deem necessary or desirable,
4    and to pay any premiums therefor.
5        (14) To negotiate and enter into agreements with
6    trustees or receivers appointed by United States
7    bankruptcy courts or federal district courts or in other
8    proceedings involving adjustment of debts and authorize
9    proceedings involving adjustment of debts and authorize
10    legal counsel for the Agency to appear in any such
11    proceedings.
12        (15) To file a petition under Chapter 9 of Title 11 of
13    the United States Bankruptcy Code or take other similar
14    action for the adjustment of its debts.
15        (16) To enter into management agreements for the
16    operation of any of the property or facilities owned by
17    the Agency.
18        (17) To enter into an agreement to transfer and to
19    transfer any land, facilities, fixtures, or equipment of
20    the Agency to one or more municipal electric systems,
21    governmental aggregators, or rural electric agencies or
22    cooperatives, for such consideration and upon such terms
23    as the Agency may determine to be in the best interest of
24    the residents of Illinois.
25        (18) To enter upon any lands and within any building
26    whenever in its judgment it may be necessary for the

 

 

10300SB1587sam001- 35 -LRB103 27840 SPS 61722 a

1    purpose of making surveys and examinations to accomplish
2    any purpose authorized by this Act.
3        (19) To maintain an office or offices at such place or
4    places in the State as it may determine.
5        (20) To request information, and to make any inquiry,
6    investigation, survey, or study that the Agency may deem
7    necessary to enable it effectively to carry out the
8    provisions of this Act.
9        (21) To accept and expend appropriations.
10        (22) To engage in any activity or operation that is
11    incidental to and in furtherance of efficient operation to
12    accomplish the Agency's purposes, including hiring
13    employees that the Director deems essential for the
14    operations of the Agency.
15        (23) To adopt, revise, amend, and repeal rules with
16    respect to its operations, properties, and facilities as
17    may be necessary or convenient to carry out the purposes
18    of this Act, subject to the provisions of the Illinois
19    Administrative Procedure Act and Sections 1-22 and 1-35 of
20    this Act.
21        (24) To establish and collect charges and fees as
22    described in this Act.
23        (25) To conduct competitive gasification feedstock
24    procurement processes to procure the feedstocks for the
25    clean coal SNG brownfield facility in accordance with the
26    requirements of Section 1-78 of this Act.

 

 

10300SB1587sam001- 36 -LRB103 27840 SPS 61722 a

1        (26) To review, revise, and approve sourcing
2    agreements and mediate and resolve disputes between gas
3    utilities and the clean coal SNG brownfield facility
4    pursuant to subsection (h-1) of Section 9-220 of the
5    Public Utilities Act.
6        (27) To request, review and accept proposals, execute
7    contracts, purchase renewable energy credits and otherwise
8    dedicate funds from the Illinois Power Agency Renewable
9    Energy Resources Fund to create and carry out the
10    objectives of the Illinois Solar for All Program in
11    accordance with Section 1-56 of this Act.
12        (28) To ensure Illinois residents and business benefit
13    from programs administered by the Agency and are properly
14    protected from any deceptive or misleading marketing
15    practices by participants in the Agency's programs and
16    procurements.
17        (29) To request, review, and accept proposals, execute
18    contracts, and procure energy storage credits.
19    (c) In conducting the procurement of electricity or other
20products, beginning January 1, 2022, the Agency shall not
21procure any products or services from persons or organizations
22that are in violation of the Displaced Energy Workers Bill of
23Rights, as provided under the Energy Community Reinvestment
24Act at the time of the procurement event or fail to comply the
25labor standards established in subparagraph (Q) of paragraph
26(1) of subsection (c) of Section 1-75.

 

 

10300SB1587sam001- 37 -LRB103 27840 SPS 61722 a

1(Source: P.A. 102-662, eff. 9-15-21.)
 
2    (20 ILCS 3855/1-75)
3    Sec. 1-75. Planning and Procurement Bureau. The Planning
4and Procurement Bureau has the following duties and
5responsibilities:
6    (a) The Planning and Procurement Bureau shall each year,
7beginning in 2008, develop procurement plans and conduct
8competitive procurement processes in accordance with the
9requirements of Section 16-111.5 of the Public Utilities Act
10for the eligible retail customers of electric utilities that
11on December 31, 2005 provided electric service to at least
12100,000 customers in Illinois. Beginning with the delivery
13year commencing on June 1, 2017, the Planning and Procurement
14Bureau shall develop plans and processes for the procurement
15of zero emission credits from zero emission facilities in
16accordance with the requirements of subsection (d-5) of this
17Section. Beginning on the effective date of this amendatory
18Act of the 102nd General Assembly, the Planning and
19Procurement Bureau shall develop plans and processes for the
20procurement of carbon mitigation credits from carbon-free
21energy resources in accordance with the requirements of
22subsection (d-10) of this Section. The Planning and
23Procurement Bureau shall also develop procurement plans and
24conduct competitive procurement processes in accordance with
25the requirements of Section 16-111.5 of the Public Utilities

 

 

10300SB1587sam001- 38 -LRB103 27840 SPS 61722 a

1Act for the eligible retail customers of small
2multi-jurisdictional electric utilities that (i) on December
331, 2005 served less than 100,000 customers in Illinois and
4(ii) request a procurement plan for their Illinois
5jurisdictional load. This Section shall not apply to a small
6multi-jurisdictional utility until such time as a small
7multi-jurisdictional utility requests the Agency to prepare a
8procurement plan for their Illinois jurisdictional load. For
9the purposes of this Section, the term "eligible retail
10customers" has the same definition as found in Section
1116-111.5(a) of the Public Utilities Act.
12    Beginning with the plan or plans to be implemented in the
132017 delivery year, the Agency shall no longer include the
14procurement of renewable energy resources in the annual
15procurement plans required by this subsection (a), except as
16provided in subsection (q) of Section 16-111.5 of the Public
17Utilities Act, and shall instead develop a long-term renewable
18resources procurement plan in accordance with subsection (c)
19of this Section and Section 16-111.5 of the Public Utilities
20Act.
21    In accordance with subsection (c-5) of this Section, the
22Planning and Procurement Bureau shall oversee the procurement
23by electric utilities that served more than 300,000 retail
24customers in this State as of January 1, 2019 of renewable
25energy credits from new utility-scale solar projects to be
26installed, along with energy storage facilities, at or

 

 

10300SB1587sam001- 39 -LRB103 27840 SPS 61722 a

1adjacent to the sites of electric generating facilities that,
2as of January 1, 2016, burned coal as their primary fuel
3source.
4        (1) The Agency shall each year, beginning in 2008, as
5    needed, issue a request for qualifications for experts or
6    expert consulting firms to develop the procurement plans
7    in accordance with Section 16-111.5 of the Public
8    Utilities Act. In order to qualify an expert or expert
9    consulting firm must have:
10            (A) direct previous experience assembling
11        large-scale power supply plans or portfolios for
12        end-use customers;
13            (B) an advanced degree in economics, mathematics,
14        engineering, risk management, or a related area of
15        study;
16            (C) 10 years of experience in the electricity
17        sector, including managing supply risk;
18            (D) expertise in wholesale electricity market
19        rules, including those established by the Federal
20        Energy Regulatory Commission and regional transmission
21        organizations;
22            (E) expertise in credit protocols and familiarity
23        with contract protocols;
24            (F) adequate resources to perform and fulfill the
25        required functions and responsibilities; and
26            (G) the absence of a conflict of interest and

 

 

10300SB1587sam001- 40 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 41 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 42 -LRB103 27840 SPS 61722 a

1    appeal of the Commission's ruling.
2        (4) The Agency shall issue requests for proposals to
3    the qualified experts or expert consulting firms to
4    develop a procurement plan for the affected utilities and
5    to serve as procurement administrator.
6        (5) The Agency shall select an expert or expert
7    consulting firm to develop procurement plans based on the
8    proposals submitted and shall award contracts of up to 5
9    years to those selected.
10        (6) The Agency shall select an expert or expert
11    consulting firm, with approval of the Commission, to serve
12    as procurement administrator based on the proposals
13    submitted. If the Commission rejects, within 5 days, the
14    Agency's selection, the Agency shall submit another
15    recommendation within 3 days based on the proposals
16    submitted. The Agency shall award a 5-year contract to the
17    expert or expert consulting firm so selected with
18    Commission approval.
19    (b) The experts or expert consulting firms retained by the
20Agency shall, as appropriate, prepare procurement plans, and
21conduct a competitive procurement process as prescribed in
22Section 16-111.5 of the Public Utilities Act, to ensure
23adequate, reliable, affordable, efficient, and environmentally
24sustainable electric service at the lowest total cost over
25time, taking into account any benefits of price stability, for
26eligible retail customers of electric utilities that on

 

 

10300SB1587sam001- 43 -LRB103 27840 SPS 61722 a

1December 31, 2005 provided electric service to at least
2100,000 customers in the State of Illinois, and for eligible
3Illinois retail customers of small multi-jurisdictional
4electric utilities that (i) on December 31, 2005 served less
5than 100,000 customers in Illinois and (ii) request a
6procurement plan for their Illinois jurisdictional load.
7    (c) Renewable portfolio standard.
8        (1)(A) The Agency shall develop a long-term renewable
9    resources procurement plan that shall include procurement
10    programs and competitive procurement events necessary to
11    meet the goals set forth in this subsection (c). The
12    initial long-term renewable resources procurement plan
13    shall be released for comment no later than 160 days after
14    June 1, 2017 (the effective date of Public Act 99-906).
15    The Agency shall review, and may revise on an expedited
16    basis, the long-term renewable resources procurement plan
17    at least every 2 years, which shall be conducted in
18    conjunction with the procurement plan under Section
19    16-111.5 of the Public Utilities Act to the extent
20    practicable to minimize administrative expense. No later
21    than 120 days after the effective date of this amendatory
22    Act of the 102nd General Assembly, the Agency shall
23    release for comment a revision to the long-term renewable
24    resources procurement plan, updating elements of the most
25    recently approved plan as needed to comply with this
26    amendatory Act of the 102nd General Assembly, and any

 

 

10300SB1587sam001- 44 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 45 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 46 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 47 -LRB103 27840 SPS 61722 a

1    new projects in amounts equal to at least the following:
2            (i) 10,000,000 renewable energy credits delivered
3        annually by the end of the 2021 delivery year, and
4        increasing ratably to reach 45,000,000 renewable
5        energy credits delivered annually from new wind and
6        solar projects by the end of delivery year 2030 such
7        that the goals in subparagraph (B) of this paragraph
8        (1) are met entirely by procurements of renewable
9        energy credits from new wind and photovoltaic
10        projects. Of that amount, to the extent possible, the
11        Agency shall procure 45% from wind projects and 55%
12        from photovoltaic projects. Of the amount to be
13        procured from photovoltaic projects, the Agency shall
14        procure: at least 50% from solar photovoltaic projects
15        using the program outlined in subparagraph (K) of this
16        paragraph (1) from distributed renewable energy
17        generation devices or community renewable generation
18        projects; at least 47% from utility-scale solar
19        projects; at least 3% from brownfield site
20        photovoltaic projects that are not community renewable
21        generation projects.
22            In developing the long-term renewable resources
23        procurement plan, the Agency shall consider other
24        approaches, in addition to competitive procurements,
25        that can be used to procure renewable energy credits
26        from brownfield site photovoltaic projects and thereby

 

 

10300SB1587sam001- 48 -LRB103 27840 SPS 61722 a

1        help return blighted or contaminated land to
2        productive use while enhancing public health and the
3        well-being of Illinois residents, including those in
4        environmental justice communities, as defined using
5        existing methodologies and findings used by the Agency
6        and its Administrator in its Illinois Solar for All
7        Program.
8            (ii) In any given delivery year, if forecasted
9        expenses are less than the maximum budget available
10        under subparagraph (E) of this paragraph (1), the
11        Agency shall continue to procure new renewable energy
12        credits until that budget is exhausted in the manner
13        outlined in item (i) of this subparagraph (C).
14            (iii) For purposes of this Section:
15            "New wind projects" means wind renewable energy
16        facilities that are energized after June 1, 2017 for
17        the delivery year commencing June 1, 2017.
18            "New photovoltaic projects" means photovoltaic
19        renewable energy facilities that are energized after
20        June 1, 2017. Photovoltaic projects developed under
21        Section 1-56 of this Act shall not apply towards the
22        new photovoltaic project requirements in this
23        subparagraph (C).
24            For purposes of calculating whether the Agency has
25        procured enough new wind and solar renewable energy
26        credits required by this subparagraph (C), renewable

 

 

10300SB1587sam001- 49 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 50 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 51 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 52 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 53 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 54 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 55 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 56 -LRB103 27840 SPS 61722 a

1        open capacity for each category in the Adjustable
2        Block program within 90 days after the effective date
3        of this amendatory Act of the 102nd General Assembly
4        manner:
5                (1) The Agency shall open the first block of
6            annual capacity for the category described in item
7            (i) of subparagraph (K) of this paragraph (1). The
8            first block of annual capacity for item (i) shall
9            be for at least 75 megawatts of total nameplate
10            capacity. The price of the renewable energy credit
11            for this block of capacity shall be 4% less than
12            the price of the last open block in this category.
13            Projects on a waitlist shall be awarded contracts
14            first in the order in which they appear on the
15            waitlist. Notwithstanding anything to the
16            contrary, for those renewable energy credits that
17            qualify and are procured under this subitem (1) of
18            this item (iv), the renewable energy credit
19            delivery contract value shall be paid in full,
20            based on the estimated generation during the first
21            15 years of operation, by the contracting
22            utilities at the time that the facility producing
23            the renewable energy credits is interconnected at
24            the distribution system level of the utility and
25            verified as energized and in compliance by the
26            Program Administrator. The electric utility shall

 

 

10300SB1587sam001- 57 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 58 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 59 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 60 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 61 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 62 -LRB103 27840 SPS 61722 a

1                portfolio shall be no greater than the
2                Agency's nameplate capacity award amount
3                associated with that applicant firm. An
4                applicant firm may decline, in whole or in
5                part, its nameplate capacity award without
6                penalty, with such unmet capacity rolled over
7                to the next block opening for project
8                selection under item (iii) of subparagraph (K)
9                of this subsection (c). Any projects not
10                included in an applicant firm's portfolio may
11                reapply without prejudice upon the next block
12                reopening for project selection under item
13                (iii) of subparagraph (K) of this subsection
14                (c).
15                    (E) The renewable energy credit delivery
16                contract shall be subject to the contract and
17                payment terms outlined in item (iv) of
18                subparagraph (L) of this subsection (c).
19                Contract instruments used for this
20                subparagraph shall contain the following
21                terms:
22                        (i) Renewable energy credit prices
23                    shall be fixed, without further adjustment
24                    under any other provision of this Act or
25                    for any other reason, at 10% lower than
26                    prices applicable to the last open block

 

 

10300SB1587sam001- 63 -LRB103 27840 SPS 61722 a

1                    for this category, inclusive of any adders
2                    available for achieving a minimum of 50%
3                    of subscribers to the project's nameplate
4                    capacity being residential or small
5                    commercial customers with subscriptions of
6                    below 25 kilowatts in size;
7                        (ii) A requirement that a minimum of
8                    50% of subscribers to the project's
9                    nameplate capacity be residential or small
10                    commercial customers with subscriptions of
11                    below 25 kilowatts in size;
12                        (iii) Permission for the ability of a
13                    contract holder to substitute projects
14                    with other waitlisted projects without
15                    penalty should a project receive a
16                    non-binding estimate of costs to construct
17                    the interconnection facilities and any
18                    required distribution upgrades associated
19                    with that project of greater than 30 cents
20                    per watt AC of that project's nameplate
21                    capacity. In developing the applicable
22                    contract instrument, the Agency may
23                    consider whether other circumstances
24                    outside of the control of the applicant
25                    firm should also warrant project
26                    substitution rights.

 

 

10300SB1587sam001- 64 -LRB103 27840 SPS 61722 a

1                    The Agency shall publish a finalized
2                updated renewable energy credit delivery
3                contract developed consistent with these terms
4                and conditions no less than 30 days before
5                applicant firms must submit their portfolio of
6                projects pursuant to item (D).
7                    (F) To be eligible for an award, the
8                applicant firm shall certify that not less
9                than prevailing wage, as determined pursuant
10                to the Illinois Prevailing Wage Act, was or
11                will be paid to employees who are engaged in
12                construction activities associated with a
13                selected project.
14                (4) The Agency shall open the first block of
15            annual capacity for the category described in item
16            (iv) of subparagraph (K) of this paragraph (1).
17            The first block of annual capacity for item (iv)
18            shall be for at least 50 megawatts of total
19            nameplate capacity. Renewable energy credit prices
20            shall be fixed, without further adjustment under
21            any other provision of this Act or for any other
22            reason, at the price in the last open block in the
23            category described in item (ii) of subparagraph
24            (K) of this paragraph (1). Pricing for future
25            blocks of annual capacity for this category may be
26            adjusted in the Agency's second revision to its

 

 

10300SB1587sam001- 65 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 66 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 67 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 68 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 69 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 70 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 71 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 72 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 73 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 74 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 75 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 76 -LRB103 27840 SPS 61722 a

1    residents, renewable energy credits shall not be eligible
2    to be counted toward the renewable energy requirements of
3    this subsection (c) if they are sourced from a generating
4    unit whose costs were being recovered through rates
5    regulated by this State or any other state or states on or
6    after January 1, 2017. Each contract executed to purchase
7    renewable energy credits under this subsection (c) shall
8    provide for the contract's termination if the costs of the
9    generating unit supplying the renewable energy credits
10    subsequently begin to be recovered through rates regulated
11    by this State or any other state or states; and each
12    contract shall further provide that, in that event, the
13    supplier of the credits must return 110% of all payments
14    received under the contract. Amounts returned under the
15    requirements of this subparagraph (J) shall be retained by
16    the utility and all of these amounts shall be used for the
17    procurement of additional renewable energy credits from
18    new wind or new photovoltaic resources as defined in this
19    subsection (c). The long-term plan shall provide that
20    these renewable energy credits shall be procured in the
21    next procurement event.
22        Notwithstanding the limitations of this subparagraph
23    (J), renewable energy credits sourced from generating
24    units that are constructed, purchased, owned, or leased by
25    an electric utility as part of an approved project,
26    program, or pilot under Section 1-56 of this Act shall be

 

 

10300SB1587sam001- 77 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 78 -LRB103 27840 SPS 61722 a

1    of a formula.
2        The Adjustable Block program shall include for each
3    category of eligible projects for each delivery year: a
4    single block of nameplate capacity, a price for renewable
5    energy credits within that block, and the terms and
6    conditions for securing a spot on a waitlist once the
7    block is fully committed or reserved. Except as outlined
8    below, the waitlist of projects in a given year will carry
9    over to apply to the subsequent year when another block is
10    opened. Only projects energized on or after June 1, 2017
11    shall be eligible for the Adjustable Block program. For
12    each category for each delivery year the Agency shall
13    determine the amount of generation capacity in each block,
14    and the purchase price for each block, provided that the
15    purchase price provided and the total amount of generation
16    in all blocks for all categories shall be sufficient to
17    meet the goals in this subsection (c). The Agency shall
18    strive to issue a single block sized to provide for
19    stability and market growth. The Agency shall establish
20    program eligibility requirements that ensure that projects
21    that enter the program are sufficiently mature to indicate
22    a demonstrable path to completion. The Agency may
23    periodically review its prior decisions establishing the
24    amount of generation capacity in each block, and the
25    purchase price for each block, and may propose, on an
26    expedited basis, changes to these previously set values,

 

 

10300SB1587sam001- 79 -LRB103 27840 SPS 61722 a

1    including but not limited to redistributing these amounts
2    and the available funds as necessary and appropriate,
3    subject to Commission approval as part of the periodic
4    plan revision process described in Section 16-111.5 of the
5    Public Utilities Act. The Agency may define different
6    block sizes, purchase prices, or other distinct terms and
7    conditions for projects located in different utility
8    service territories if the Agency deems it necessary to
9    meet the goals in this subsection (c).
10        The Adjustable Block program shall include the
11    following categories in at least the following amounts:
12            (i) At least 20% from distributed renewable energy
13        generation devices with a nameplate capacity of no
14        more than 25 kilowatts.
15            (ii) At least 20% from distributed renewable
16        energy generation devices with a nameplate capacity of
17        more than 25 kilowatts and no more than 5,000
18        kilowatts. The Agency may create sub-categories within
19        this category to account for the differences between
20        projects for small commercial customers, large
21        commercial customers, and public or non-profit
22        customers.
23            (iii) At least 30% from photovoltaic community
24        renewable generation projects. Capacity for this
25        category for the first 2 delivery years after the
26        effective date of this amendatory Act of the 102nd

 

 

10300SB1587sam001- 80 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 81 -LRB103 27840 SPS 61722 a

1            after the effective date of this amendatory Act of
2            the 102nd General Assembly.
3            (iv) At least 15% from distributed renewable
4        generation devices or photovoltaic community renewable
5        generation projects installed at public schools. The
6        Agency may create subcategories within this category
7        to account for the differences between project size or
8        location. Projects located within environmental
9        justice communities or within Organizational Units
10        that fall within Tier 1 or Tier 2 shall be given
11        priority. Each of the Agency's periodic updates to its
12        long-term renewable resources procurement plan to
13        incorporate the procurement described in this
14        subparagraph (iv) shall also include the proposed
15        quantities or blocks, pricing, and contract terms
16        applicable to the procurement as indicated herein. In
17        each such update and procurement, the Agency shall set
18        the renewable energy credit price and establish
19        payment terms for the renewable energy credits
20        procured pursuant to this subparagraph (iv) that make
21        it feasible and affordable for public schools to
22        install photovoltaic distributed renewable energy
23        devices on their premises, including, but not limited
24        to, those public schools subject to the prioritization
25        provisions of this subparagraph. For the purposes of
26        this item (iv):

 

 

10300SB1587sam001- 82 -LRB103 27840 SPS 61722 a

1            "Environmental Justice Community" shall have the
2        same meaning set forth in the Agency's long-term
3        renewable resources procurement plan;
4            "Organization Unit", "Tier 1" and "Tier 2" shall
5        have the meanings set for in Section 18-8.15 of the
6        School Code;
7            "Public schools" shall have the meaning set forth
8        in Section 1-3 of the School Code.
9            (v) At least 5% from community-driven community
10        solar projects intended to provide more direct and
11        tangible connection and benefits to the communities
12        which they serve or in which they operate and,
13        additionally, to increase the variety of community
14        solar locations, models, and options in Illinois. As
15        part of its long-term renewable resources procurement
16        plan, the Agency shall develop selection criteria for
17        projects participating in this category. Nothing in
18        this Section shall preclude the Agency from creating a
19        selection process that maximizes community ownership
20        and community benefits in selecting projects to
21        receive renewable energy credits. Selection criteria
22        shall include:
23                (1) community ownership or community
24            wealth-building;
25                (2) additional direct and indirect community
26            benefit, beyond project participation as a

 

 

10300SB1587sam001- 83 -LRB103 27840 SPS 61722 a

1            subscriber, including, but not limited to,
2            economic, environmental, social, cultural, and
3            physical benefits;
4                (3) meaningful involvement in project
5            organization and development by community members
6            or nonprofit organizations or public entities
7            located in or serving the community;
8                (4) engagement in project operations and
9            management by nonprofit organizations, public
10            entities, or community members; and
11                (5) whether a project is developed in response
12            to a site-specific RFP developed by community
13            members or a nonprofit organization or public
14            entity located in or serving the community.
15            Selection criteria may also prioritize projects
16        that:
17                (1) are developed in collaboration with or to
18            provide complementary opportunities for the Clean
19            Jobs Workforce Network Program, the Illinois
20            Climate Works Preapprenticeship Program, the
21            Returning Residents Clean Jobs Training Program,
22            the Clean Energy Contractor Incubator Program, or
23            the Clean Energy Primes Contractor Accelerator
24            Program;
25                (2) increase the diversity of locations of
26            community solar projects in Illinois, including by

 

 

10300SB1587sam001- 84 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 85 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 86 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 87 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 88 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 89 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 90 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 91 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 92 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 93 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 94 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 95 -LRB103 27840 SPS 61722 a

1    16-111.5 of the Public Utilities Act. The Agency shall
2    consider stakeholder feedback when making adjustments to
3    application fees and shall notify stakeholders in advance
4    of any planned changes.
5        In addition to covering the costs of program
6    administration, the Agency, in conjunction with its
7    Program Administrator, may also use the proceeds of such
8    fees charged to participating firms to support public
9    education and ongoing regional and national coordination
10    with nonprofit organizations, public bodies, and others
11    engaged in the implementation of renewable energy
12    incentive programs or similar initiatives. This work may
13    include developing papers and reports, hosting regional
14    and national conferences, and other work deemed necessary
15    by the Agency to position the State of Illinois as a
16    national leader in renewable energy incentive program
17    development and administration.
18        The Agency and its consultant or consultants shall
19    monitor block activity, share program activity with
20    stakeholders and conduct quarterly meetings to discuss
21    program activity and market conditions. If necessary, the
22    Agency may make prospective administrative adjustments to
23    the Adjustable Block program design, such as making
24    adjustments to purchase prices as necessary to achieve the
25    goals of this subsection (c). Program modifications to any
26    block price that do not deviate from the Commission's

 

 

10300SB1587sam001- 96 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 97 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 98 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 99 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 100 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 101 -LRB103 27840 SPS 61722 a

1        (O) For the delivery year beginning June 1, 2018, the
2    long-term renewable resources procurement plan required by
3    this subsection (c) shall provide for the Agency to
4    procure contracts to continue offering the Illinois Solar
5    for All Program described in subsection (b) of Section
6    1-56 of this Act, and the contracts approved by the
7    Commission shall be executed by the utilities that are
8    subject to this subsection (c). The long-term renewable
9    resources procurement plan shall allocate up to
10    $50,000,000 per delivery year to fund the programs, and
11    the plan shall determine the amount of funding to be
12    apportioned to the programs identified in subsection (b)
13    of Section 1-56 of this Act; provided that for the
14    delivery years beginning June 1, 2021, June 1, 2022, and
15    June 1, 2023, the long-term renewable resources
16    procurement plan may average the annual budgets over a
17    3-year period to account for program ramp-up. For the
18    delivery years beginning June 1, 2021, June 1, 2024, June
19    1, 2027, and June 1, 2030 and additional $10,000,000 shall
20    be provided to the Department of Commerce and Economic
21    Opportunity to implement the workforce development
22    programs and reporting as outlined in Section 16-108.12 of
23    the Public Utilities Act. In making the determinations
24    required under this subparagraph (O), the Commission shall
25    consider the experience and performance under the programs
26    and any evaluation reports. The Commission shall also

 

 

10300SB1587sam001- 102 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 103 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 104 -LRB103 27840 SPS 61722 a

1            projects;
2                (iii) all new brownfield photovoltaic
3            projects;
4                (iv) all new photovoltaic community renewable
5            energy facilities and any associated energy
6            storage systems that qualify for item (iii) of
7            subparagraph (K) of this paragraph (1);
8                (v) all new community driven community
9            photovoltaic projects and any associated energy
10            storage systems that qualify for item (v) of
11            subparagraph (K) of this paragraph (1);
12                (vi) all new photovoltaic distributed
13            renewable energy generation devices on schools and
14            any associated energy storage systems that qualify
15            for item (iv) of subparagraph (K) of this
16            paragraph (1);
17                (vii) all new photovoltaic distributed
18            renewable energy generation devices and any
19            associated energy storage systems that (1) qualify
20            for item (i) of subparagraph (K) of this paragraph
21            (1); (2) are not projects that serve single-family
22            or multi-family residential buildings; and (3) are
23            not houses of worship where the aggregate capacity
24            including collocated projects would not exceed 100
25            kilowatts;
26                (viii) all new photovoltaic distributed

 

 

10300SB1587sam001- 105 -LRB103 27840 SPS 61722 a

1            renewable energy generation devices and any
2            associated energy storage systems that (1) qualify
3            for item (ii) of subparagraph (K) of this
4            paragraph (1); (2) are not projects that serve
5            single-family or multi-family residential
6            buildings; and (3) are not houses of worship where
7            the aggregate capacity including collocated
8            projects would not exceed 100 kilowatts.
9            (2) Renewable energy credits procured from new
10        utility-scale wind projects, new utility-scale solar
11        projects, and new brownfield solar projects pursuant
12        to Agency procurement events occurring after the
13        effective date of this amendatory Act of the 102nd
14        General Assembly must be from facilities built by
15        general contractors that must enter into a project
16        labor agreement, as defined by this Act, prior to
17        construction. The project labor agreement shall be
18        filed with the Director in accordance with procedures
19        established by the Agency through its long-term
20        renewable resources procurement plan. Any information
21        submitted to the Agency in this item (2) shall be
22        considered commercially sensitive information. At a
23        minimum, the project labor agreement must provide the
24        names, addresses, and occupations of the owner of the
25        plant and the individuals representing the labor
26        organization employees participating in the project

 

 

10300SB1587sam001- 106 -LRB103 27840 SPS 61722 a

1        labor agreement consistent with the Project Labor
2        Agreements Act. The agreement must also specify the
3        terms and conditions as defined by this Act.
4            (3) It is the intent of this Section to ensure that
5        economic development occurs across Illinois
6        communities, that emerging businesses may grow, and
7        that there is improved access to the clean energy
8        economy by persons who have greater economic burdens
9        to success. The Agency shall take into consideration
10        the unique cost of compliance of this subparagraph (Q)
11        that might be borne by equity eligible contractors,
12        shall include such costs when determining the price of
13        renewable energy credits in the Adjustable Block
14        program, and shall take such costs into consideration
15        in a nondiscriminatory manner when comparing bids for
16        competitive procurements. The Agency shall consider
17        costs associated with compliance whether in the
18        development, financing, or construction of projects.
19        The Agency shall periodically review the assumptions
20        in these costs and may adjust prices, in compliance
21        with subparagraph (M) of this paragraph (1).
22        (R) In its long-term renewable resources procurement
23    plan, the Agency shall establish a self-direct renewable
24    portfolio standard compliance program for eligible
25    self-direct customers that purchase renewable energy
26    credits from utility-scale wind and solar projects through

 

 

10300SB1587sam001- 107 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 108 -LRB103 27840 SPS 61722 a

1        the year in which the application is filed.
2            (2) For renewable energy credits to count toward
3        the self-direct renewable portfolio standard
4        compliance program, they must:
5                (i) qualify as renewable energy credits as
6            defined in Section 1-10 of this Act;
7                (ii) be sourced from one or more renewable
8            energy generating facilities that comply with the
9            geographic requirements as set forth in
10            subparagraph (I) of paragraph (1) of subsection
11            (c) as interpreted through the Agency's long-term
12            renewable resources procurement plan, or, where
13            applicable, the geographic requirements that
14            governed utility-scale renewable energy credits at
15            the time the eligible self-direct customer entered
16            into the applicable renewable energy credit
17            purchase agreement;
18                (iii) be procured through long-term contracts
19            with term lengths of at least 10 years either
20            directly with the renewable energy generating
21            facility or through a bundled power purchase
22            agreement, a virtual power purchase agreement, an
23            agreement between the renewable generating
24            facility, an alternative retail electric supplier,
25            and the customer, or such other structure as is
26            permissible under this subparagraph (R);

 

 

10300SB1587sam001- 109 -LRB103 27840 SPS 61722 a

1                (iv) be equivalent in volume to at least 40%
2            of the eligible self-direct customer's usage,
3            determined annually by the eligible self-direct
4            customer's usage during the previous delivery
5            year, measured to the nearest megawatt-hour;
6                (v) be retired by or on behalf of the large
7            energy customer;
8                (vi) be sourced from new utility-scale wind
9            projects or new utility-scale solar projects; and
10                (vii) if the contracts for renewable energy
11            credits are entered into after the effective date
12            of this amendatory Act of the 102nd General
13            Assembly, the new utility-scale wind projects or
14            new utility-scale solar projects must comply with
15            the requirements established in subparagraphs (P)
16            and (Q) of paragraph (1) of this subsection (c)
17            and subsection (c-10).
18            (3) The self-direct renewable portfolio standard
19        compliance program shall be designed to allow eligible
20        self-direct customers to procure new renewable energy
21        credits from new utility-scale wind projects or new
22        utility-scale photovoltaic projects. The Agency shall
23        annually determine the amount of utility-scale
24        renewable energy credits it will include each year
25        from the self-direct renewable portfolio standard
26        compliance program, subject to receiving qualifying

 

 

10300SB1587sam001- 110 -LRB103 27840 SPS 61722 a

1        applications. In making this determination, the Agency
2        shall evaluate publicly available analyses and studies
3        of the potential market size for utility-scale
4        renewable energy long-term purchase agreements by
5        commercial and industrial energy customers and make
6        that report publicly available. If demand for
7        participation in the self-direct renewable portfolio
8        standard compliance program exceeds availability, the
9        Agency shall ensure participation is evenly split
10        between commercial and industrial users to the extent
11        there is sufficient demand from both customer classes.
12        Each renewable energy credit procured pursuant to this
13        subparagraph (R) by a self-direct customer shall
14        reduce the total volume of renewable energy credits
15        the Agency is otherwise required to procure from new
16        utility-scale projects pursuant to subparagraph (C) of
17        paragraph (1) of this subsection (c) on behalf of
18        contracting utilities where the eligible self-direct
19        customer is located. The self-direct customer shall
20        file an annual compliance report with the Agency
21        pursuant to terms established by the Agency through
22        its long-term renewable resources procurement plan to
23        be eligible for participation in this program.
24        Customers must provide the Agency with their most
25        recent electricity billing statements or other
26        information deemed necessary by the Agency to

 

 

10300SB1587sam001- 111 -LRB103 27840 SPS 61722 a

1        demonstrate they are an eligible self-direct customer.
2            (4) The Commission shall approve a reduction in
3        the volumetric charges collected pursuant to Section
4        16-108 of the Public Utilities Act for approved
5        eligible self-direct customers equivalent to the
6        anticipated cost of renewable energy credit deliveries
7        under contracts for new utility-scale wind and new
8        utility-scale solar entered for each delivery year
9        after the large energy customer begins retiring
10        eligible new utility scale renewable energy credits
11        for self-compliance. The self-direct credit amount
12        shall be determined annually and is equal to the
13        estimated portion of the cost authorized by
14        subparagraph (E) of paragraph (1) of this subsection
15        (c) that supported the annual procurement of
16        utility-scale renewable energy credits in the prior
17        delivery year using a methodology described in the
18        long-term renewable resources procurement plan,
19        expressed on a per kilowatthour basis, and does not
20        include (i) costs associated with any contracts
21        entered into before the delivery year in which the
22        customer files the initial compliance report to be
23        eligible for participation in the self-direct program,
24        and (ii) costs associated with procuring renewable
25        energy credits through existing and future contracts
26        through the Adjustable Block Program, subsection (c-5)

 

 

10300SB1587sam001- 112 -LRB103 27840 SPS 61722 a

1        of this Section 1-75, and the Solar for All Program.
2        The Agency shall assist the Commission in determining
3        the current and future costs. The Agency must
4        determine the self-direct credit amount for new and
5        existing eligible self-direct customers and submit
6        this to the Commission in an annual compliance filing.
7        The Commission must approve the self-direct credit
8        amount by June 1, 2023 and June 1 of each delivery year
9        thereafter.
10            (5) Customers described in this subparagraph (R)
11        shall apply, on a form developed by the Agency, to the
12        Agency to be designated as a self-direct eligible
13        customer. Once the Agency determines that a
14        self-direct customer is eligible for participation in
15        the program, the self-direct customer will remain
16        eligible until the end of the term of the contract.
17        Thereafter, application may be made not less than 12
18        months before the filing date of the long-term
19        renewable resources procurement plan described in this
20        Act. At a minimum, such application shall contain the
21        following:
22                (i) the customer's certification that, at the
23            time of the customer's application, the customer
24            qualifies to be a self-direct eligible customer,
25            including documents demonstrating that
26            qualification;

 

 

10300SB1587sam001- 113 -LRB103 27840 SPS 61722 a

1                (ii) the customer's certification that the
2            customer has entered into or will enter into by
3            the beginning of the applicable procurement year,
4            one or more bilateral contracts for new wind
5            projects or new photovoltaic projects, including
6            supporting documentation;
7                (iii) certification that the contract or
8            contracts for new renewable energy resources are
9            long-term contracts with term lengths of at least
10            10 years, including supporting documentation;
11                (iv) certification of the quantities of
12            renewable energy credits that the customer will
13            purchase each year under such contract or
14            contracts, including supporting documentation;
15                (v) proof that the contract is sufficient to
16            produce renewable energy credits to be equivalent
17            in volume to at least 40% of the large energy
18            customer's usage from the previous delivery year,
19            measured to the nearest megawatt-hour; and
20                (vi) certification that the customer intends
21            to maintain the contract for the duration of the
22            length of the contract.
23            (6) If a customer receives the self-direct credit
24        but fails to properly procure and retire renewable
25        energy credits as required under this subparagraph
26        (R), the Commission, on petition from the Agency and

 

 

10300SB1587sam001- 114 -LRB103 27840 SPS 61722 a

1        after notice and hearing, may direct such customer's
2        utility to recover the cost of the wrongfully received
3        self-direct credits plus interest through an adder to
4        charges assessed pursuant to Section 16-108 of the
5        Public Utilities Act. Self-direct customers who
6        knowingly fail to properly procure and retire
7        renewable energy credits and do not notify the Agency
8        are ineligible for continued participation in the
9        self-direct renewable portfolio standard compliance
10        program.
11        (2) (Blank).
12        (3) (Blank).
13        (4) The electric utility shall retire all renewable
14    energy credits used to comply with the standard.
15        (5) Beginning with the 2010 delivery year and ending
16    June 1, 2017, an electric utility subject to this
17    subsection (c) shall apply the lesser of the maximum
18    alternative compliance payment rate or the most recent
19    estimated alternative compliance payment rate for its
20    service territory for the corresponding compliance period,
21    established pursuant to subsection (d) of Section 16-115D
22    of the Public Utilities Act to its retail customers that
23    take service pursuant to the electric utility's hourly
24    pricing tariff or tariffs. The electric utility shall
25    retain all amounts collected as a result of the
26    application of the alternative compliance payment rate or

 

 

10300SB1587sam001- 115 -LRB103 27840 SPS 61722 a

1    rates to such customers, and, beginning in 2011, the
2    utility shall include in the information provided under
3    item (1) of subsection (d) of Section 16-111.5 of the
4    Public Utilities Act the amounts collected under the
5    alternative compliance payment rate or rates for the prior
6    year ending May 31. Notwithstanding any limitation on the
7    procurement of renewable energy resources imposed by item
8    (2) of this subsection (c), the Agency shall increase its
9    spending on the purchase of renewable energy resources to
10    be procured by the electric utility for the next plan year
11    by an amount equal to the amounts collected by the utility
12    under the alternative compliance payment rate or rates in
13    the prior year ending May 31.
14        (6) The electric utility shall be entitled to recover
15    all of its costs associated with the procurement of
16    renewable energy credits under plans approved under this
17    Section and Section 16-111.5 of the Public Utilities Act.
18    These costs shall include associated reasonable expenses
19    for implementing the procurement programs, including, but
20    not limited to, the costs of administering and evaluating
21    the Adjustable Block program, through an automatic
22    adjustment clause tariff in accordance with subsection (k)
23    of Section 16-108 of the Public Utilities Act.
24        (7) Renewable energy credits procured from new
25    photovoltaic projects or new distributed renewable energy
26    generation devices under this Section after June 1, 2017

 

 

10300SB1587sam001- 116 -LRB103 27840 SPS 61722 a

1    (the effective date of Public Act 99-906) must be procured
2    from devices installed by a qualified person in compliance
3    with the requirements of Section 16-128A of the Public
4    Utilities Act and any rules or regulations adopted
5    thereunder.
6        In meeting the renewable energy requirements of this
7    subsection (c), to the extent feasible and consistent with
8    State and federal law, the renewable energy credit
9    procurements, Adjustable Block solar program, and
10    community renewable generation program shall provide
11    employment opportunities for all segments of the
12    population and workforce, including minority-owned and
13    female-owned business enterprises, and shall not,
14    consistent with State and federal law, discriminate based
15    on race or socioeconomic status.
16    (c-5) Procurement of renewable energy credits from new
17renewable energy facilities installed at or adjacent to the
18sites of electric generating facilities that burn or burned
19coal as their primary fuel source.
20        (1) In addition to the procurement of renewable energy
21    credits pursuant to long-term renewable resources
22    procurement plans in accordance with subsection (c) of
23    this Section and Section 16-111.5 of the Public Utilities
24    Act, the Agency shall conduct procurement events in
25    accordance with this subsection (c-5) for the procurement
26    by electric utilities that served more than 300,000 retail

 

 

10300SB1587sam001- 117 -LRB103 27840 SPS 61722 a

1    customers in this State as of January 1, 2019 of renewable
2    energy credits from new renewable energy facilities to be
3    installed at or adjacent to the sites of electric
4    generating facilities that, as of January 1, 2016, burned
5    coal as their primary fuel source and meet the other
6    criteria specified in this subsection (c-5). For purposes
7    of this subsection (c-5), "new renewable energy facility"
8    means a new utility-scale solar project as defined in this
9    Section 1-75. The renewable energy credits procured
10    pursuant to this subsection (c-5) may be included or
11    counted for purposes of compliance with the amounts of
12    renewable energy credits required to be procured pursuant
13    to subsection (c) of this Section to the extent that there
14    are otherwise shortfalls in compliance with such
15    requirements. The procurement of renewable energy credits
16    by electric utilities pursuant to this subsection (c-5)
17    shall be funded solely by revenues collected from the Coal
18    to Solar and Energy Storage Initiative Charge provided for
19    in this subsection (c-5) and subsection (i-5) of Section
20    16-108 of the Public Utilities Act, shall not be funded by
21    revenues collected through any of the other funding
22    mechanisms provided for in subsection (c) of this Section,
23    and shall not be subject to the limitation imposed by
24    subsection (c) on charges to retail customers for costs to
25    procure renewable energy resources pursuant to subsection
26    (c), and shall not be subject to any other requirements or

 

 

10300SB1587sam001- 118 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 119 -LRB103 27840 SPS 61722 a

1    subsection (c-5) shall be as follows:
2            (A) The applicant owns an electric generating
3        facility located in this State that: (i) as of January
4        1, 2016, burned coal as its primary fuel to generate
5        electricity; and (ii) has, or had prior to retirement,
6        an electric generating capacity of at least 150
7        megawatts. The electric generating facility can be
8        either: (i) retired as of the date of the procurement
9        event; or (ii) still operating as of the date of the
10        procurement event.
11            (B) The applicant is not (i) an electric
12        cooperative as defined in Section 3-119 of the Public
13        Utilities Act, or (ii) an entity described in
14        subsection (b)(1) of Section 3-105 of the Public
15        Utilities Act, or an association or consortium of or
16        an entity owned by entities described in (i) or (ii);
17        and the coal-fueled electric generating facility was
18        at one time owned, in whole or in part, by a public
19        utility as defined in Section 3-105 of the Public
20        Utilities Act.
21            (C) If participating in the first procurement
22        event, the applicant proposes and commits to construct
23        and operate, at the site, and if necessary for
24        sufficient space on property adjacent to the existing
25        property, at which the electric generating facility
26        identified in paragraph (A) is located: (i) a new

 

 

10300SB1587sam001- 120 -LRB103 27840 SPS 61722 a

1        renewable energy facility of at least 20 megawatts but
2        no more than 100 megawatts of electric generating
3        capacity, and (ii) an energy storage facility having a
4        storage capacity equal to at least 2 megawatts and at
5        most 10 megawatts. If participating in the second
6        procurement event, the applicant proposes and commits
7        to construct and operate, at the site, and if
8        necessary for sufficient space on property adjacent to
9        the existing property, at which the electric
10        generating facility identified in paragraph (A) is
11        located: (i) a new renewable energy facility of at
12        least 5 megawatts but no more than 20 megawatts of
13        electric generating capacity, and (ii) an energy
14        storage facility having a storage capacity equal to at
15        least 0.5 megawatts and at most one megawatt.
16            (D) The applicant agrees that the new renewable
17        energy facility and the energy storage facility will
18        be constructed or installed by a qualified entity or
19        entities in compliance with the requirements of
20        subsection (g) of Section 16-128A of the Public
21        Utilities Act and any rules adopted thereunder.
22            (E) The applicant agrees that personnel operating
23        the new renewable energy facility and the energy
24        storage facility will have the requisite skills,
25        knowledge, training, experience, and competence, which
26        may be demonstrated by completion or current

 

 

10300SB1587sam001- 121 -LRB103 27840 SPS 61722 a

1        participation and ultimate completion by employees of
2        an accredited or otherwise recognized apprenticeship
3        program for the employee's particular craft, trade, or
4        skill, including through training and education
5        courses and opportunities offered by the owner to
6        employees of the coal-fueled electric generating
7        facility or by previous employment experience
8        performing the employee's particular work skill or
9        function.
10            (F) The applicant commits that not less than the
11        prevailing wage, as determined pursuant to the
12        Prevailing Wage Act, will be paid to the applicant's
13        employees engaged in construction activities
14        associated with the new renewable energy facility and
15        the new energy storage facility and to the employees
16        of applicant's contractors engaged in construction
17        activities associated with the new renewable energy
18        facility and the new energy storage facility, and
19        that, on or before the commercial operation date of
20        the new renewable energy facility, the applicant shall
21        file a report with the Agency certifying that the
22        requirements of this subparagraph (F) have been met.
23            (G) The applicant commits that if selected, it
24        will negotiate a project labor agreement for the
25        construction of the new renewable energy facility and
26        associated energy storage facility that includes

 

 

10300SB1587sam001- 122 -LRB103 27840 SPS 61722 a

1        provisions requiring the parties to the agreement to
2        work together to establish diversity threshold
3        requirements and to ensure best efforts to meet
4        diversity targets, improve diversity at the applicable
5        job site, create diverse apprenticeship opportunities,
6        and create opportunities to employ former coal-fired
7        power plant workers.
8            (H) The applicant commits to enter into a contract
9        or contracts for the applicable duration to provide
10        specified numbers of renewable energy credits each
11        year from the new renewable energy facility to
12        electric utilities that served more than 300,000
13        retail customers in this State as of January 1, 2019,
14        at a price of $30 per renewable energy credit. The
15        price per renewable energy credit shall be fixed at
16        $30 for the applicable duration and the renewable
17        energy credits shall not be indexed renewable energy
18        credits as provided for in item (v) of subparagraph
19        (G) of paragraph (1) of subsection (c) of Section 1-75
20        of this Act. The applicable duration of each contract
21        shall be 20 years, unless the applicant is physically
22        interconnected to the PJM Interconnection, LLC
23        transmission grid and had a generating capacity of at
24        least 1,200 megawatts as of January 1, 2021, in which
25        case the applicable duration of the contract shall be
26        15 years.

 

 

10300SB1587sam001- 123 -LRB103 27840 SPS 61722 a

1            (I) The applicant's application is certified by an
2        officer of the applicant and by an officer of the
3        applicant's ultimate parent company, if any.
4        (3) An applicant may submit applications to contract
5    to supply renewable energy credits from more than one new
6    renewable energy facility to be constructed at or adjacent
7    to one or more qualifying electric generating facilities
8    owned by the applicant. The Agency may select new
9    renewable energy facilities to be located at or adjacent
10    to the sites of more than one qualifying electric
11    generation facility owned by an applicant to contract with
12    electric utilities to supply renewable energy credits from
13    such facilities.
14        (4) The Agency shall assess fees to each applicant to
15    recover the Agency's costs incurred in receiving and
16    evaluating applications, conducting the procurement event,
17    developing contracts for sale, delivery and purchase of
18    renewable energy credits, and monitoring the
19    administration of such contracts, as provided for in this
20    subsection (c-5), including fees paid to a procurement
21    administrator retained by the Agency for one or more of
22    these purposes.
23        (5) The Agency shall select the applicants and the new
24    renewable energy facilities to contract with electric
25    utilities to supply renewable energy credits in accordance
26    with this subsection (c-5). In the first procurement

 

 

10300SB1587sam001- 124 -LRB103 27840 SPS 61722 a

1    event, the Agency shall select applicants and new
2    renewable energy facilities to supply renewable energy
3    credits, at a price of $30 per renewable energy credit,
4    aggregating to no less than 400,000 renewable energy
5    credits per year for the applicable duration, assuming
6    sufficient qualifying applications to supply, in the
7    aggregate, at least that amount of renewable energy
8    credits per year; and not more than 580,000 renewable
9    energy credits per year for the applicable duration. In
10    the second procurement event, the Agency shall select
11    applicants and new renewable energy facilities to supply
12    renewable energy credits, at a price of $30 per renewable
13    energy credit, aggregating to no more than 625,000
14    renewable energy credits per year less the amount of
15    renewable energy credits each year contracted for as a
16    result of the first procurement event, for the applicable
17    durations. The number of renewable energy credits to be
18    procured as specified in this paragraph (5) shall not be
19    reduced based on renewable energy credits procured in the
20    self-direct renewable energy credit compliance program
21    established pursuant to subparagraph (R) of paragraph (1)
22    of subsection (c) of Section 1-75.
23        (6) The obligation to purchase renewable energy
24    credits from the applicants and their new renewable energy
25    facilities selected by the Agency shall be allocated to
26    the electric utilities based on their respective

 

 

10300SB1587sam001- 125 -LRB103 27840 SPS 61722 a

1    percentages of kilowatthours delivered to delivery
2    services customers to the aggregate kilowatthour
3    deliveries by the electric utilities to delivery services
4    customers for the year ended December 31, 2021. In order
5    to achieve these allocation percentages between or among
6    the electric utilities, the Agency shall require each
7    applicant that is selected in the procurement event to
8    enter into a contract with each electric utility for the
9    sale and purchase of renewable energy credits from each
10    new renewable energy facility to be constructed and
11    operated by the applicant, with the sale and purchase
12    obligations under the contracts to aggregate to the total
13    number of renewable energy credits per year to be supplied
14    by the applicant from the new renewable energy facility.
15        (7) The Agency shall submit its proposed selection of
16    applicants, new renewable energy facilities to be
17    constructed, and renewable energy credit amounts for each
18    procurement event to the Commission for approval. The
19    Commission shall, within 2 business days after receipt of
20    the Agency's proposed selections, approve the proposed
21    selections if it determines that the applicants and the
22    new renewable energy facilities to be constructed meet the
23    selection criteria set forth in this subsection (c-5) and
24    that the Agency seeks approval for contracts of applicable
25    durations aggregating to no more than the maximum amount
26    of renewable energy credits per year authorized by this

 

 

10300SB1587sam001- 126 -LRB103 27840 SPS 61722 a

1    subsection (c-5) for the procurement event, at a price of
2    $30 per renewable energy credit.
3        (8) The Agency, in conjunction with its procurement
4    administrator if one is retained, the electric utilities,
5    and potential applicants for contracts to produce and
6    supply renewable energy credits pursuant to this
7    subsection (c-5), shall develop a standard form contract
8    for the sale, delivery and purchase of renewable energy
9    credits pursuant to this subsection (c-5). Each contract
10    resulting from the first procurement event shall allow for
11    a commercial operation date for the new renewable energy
12    facility of either June 1, 2023 or June 1, 2024, with such
13    dates subject to adjustment as provided in this paragraph.
14    Each contract resulting from the second procurement event
15    shall provide for a commercial operation date on June 1
16    next occurring up to 48 months after execution of the
17    contract. Each contract shall provide that the owner shall
18    receive payments for renewable energy credits for the
19    applicable durations beginning with the commercial
20    operation date of the new renewable energy facility. The
21    form contract shall provide for adjustments to the
22    commercial operation and payment start dates as needed due
23    to any delays in completing the procurement and
24    contracting processes, in finalizing interconnection
25    agreements and installing interconnection facilities, and
26    in obtaining other necessary governmental permits and

 

 

10300SB1587sam001- 127 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 128 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 129 -LRB103 27840 SPS 61722 a

1        16-108 of the Public Utilities Act.
2            (B) Each electric utility shall remit on a monthly
3        basis to the State Treasurer, for deposit in the Coal
4        to Solar and Energy Storage Initiative Fund provided
5        for in this subsection (c-5), the electric utility's
6        collections of the Coal to Solar and Energy Storage
7        Initiative Charge in the amount estimated to be needed
8        by the Department for grant payments pursuant to grant
9        contracts entered into by the Department pursuant to
10        paragraph (10) of this subsection (c-5).
11        (10) Coal to Solar and Energy Storage Initiative Fund.
12            (A) The Coal to Solar and Energy Storage
13        Initiative Fund is established as a special fund in
14        the State treasury. The Coal to Solar and Energy
15        Storage Initiative Fund is authorized to receive, by
16        statutory deposit, that portion specified in item (B)
17        of paragraph (9) of this subsection (c-5) of moneys
18        collected by electric utilities through imposition of
19        the Coal to Solar and Energy Storage Initiative Charge
20        required by this subsection (c-5). The Coal to Solar
21        and Energy Storage Initiative Fund shall be
22        administered by the Department to provide grants to
23        support the installation and operation of energy
24        storage facilities at the sites of qualifying electric
25        generating facilities meeting the criteria specified
26        in this paragraph (10).

 

 

10300SB1587sam001- 130 -LRB103 27840 SPS 61722 a

1            (B) The Coal to Solar and Energy Storage
2        Initiative Fund shall not be subject to sweeps,
3        administrative charges, or chargebacks, including, but
4        not limited to, those authorized under Section 8h of
5        the State Finance Act, that would in any way result in
6        the transfer of those funds from the Coal to Solar and
7        Energy Storage Initiative Fund to any other fund of
8        this State or in having any such funds utilized for any
9        purpose other than the express purposes set forth in
10        this paragraph (10).
11            (C) The Department shall utilize up to
12        $280,500,000 in the Coal to Solar and Energy Storage
13        Initiative Fund for grants, assuming sufficient
14        qualifying applicants, to support installation of
15        energy storage facilities at the sites of up to 3
16        qualifying electric generating facilities located in
17        the Midcontinent Independent System Operator, Inc.,
18        region in Illinois and the sites of up to 2 qualifying
19        electric generating facilities located in the PJM
20        Interconnection, LLC region in Illinois that meet the
21        criteria set forth in this subparagraph (C). The
22        criteria for receipt of a grant pursuant to this
23        subparagraph (C) are as follows:
24                (1) the electric generating facility at the
25            site has, or had prior to retirement, an electric
26            generating capacity of at least 150 megawatts;

 

 

10300SB1587sam001- 131 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 132 -LRB103 27840 SPS 61722 a

1                (7) the proposed energy storage facility at
2            the site will have energy storage capacity of at
3            least 37 megawatts;
4                (8) the owner commits to place the energy
5            storage facility into commercial operation on
6            either June 1, 2023, June 1, 2024, or June 1, 2025,
7            with such date subject to adjustment as needed due
8            to any delays in completing the grant contracting
9            process, in finalizing interconnection agreements
10            and in installing interconnection facilities, and
11            in obtaining necessary governmental permits and
12            approvals;
13                (9) the owner agrees that the new energy
14            storage facility will be constructed or installed
15            by a qualified entity or entities consistent with
16            the requirements of subsection (g) of Section
17            16-128A of the Public Utilities Act and any rules
18            adopted under that Section;
19                (10) the owner agrees that personnel operating
20            the energy storage facility will have the
21            requisite skills, knowledge, training, experience,
22            and competence, which may be demonstrated by
23            completion or current participation and ultimate
24            completion by employees of an accredited or
25            otherwise recognized apprenticeship program for
26            the employee's particular craft, trade, or skill,

 

 

10300SB1587sam001- 133 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 134 -LRB103 27840 SPS 61722 a

1            diversity targets, improve diversity at the
2            applicable job site, create diverse apprenticeship
3            opportunities, and create opportunities to employ
4            former coal-fired power plant workers.
5            The Department shall accept applications for this
6        grant program until March 31, 2022 and shall announce
7        the award of grants no later than June 1, 2022. The
8        Department shall make the grant payments to a
9        recipient in equal annual amounts for 10 years
10        following the date the energy storage facility is
11        placed into commercial operation. The annual grant
12        payments to a qualifying energy storage facility shall
13        be $110,000 per megawatt of energy storage capacity,
14        with total annual grant payments pursuant to this
15        subparagraph (C) for qualifying energy storage
16        facilities not to exceed $28,050,000 in any year.
17            (D) Grants of funding for energy storage
18        facilities pursuant to subparagraph (C) of this
19        paragraph (10), from the Coal to Solar and Energy
20        Storage Initiative Fund, shall be memorialized in
21        grant contracts between the Department and the
22        recipient. The grant contracts shall specify the date
23        or dates in each year on which the annual grant
24        payments shall be paid.
25            (E) All disbursements from the Coal to Solar and
26        Energy Storage Initiative Fund shall be made only upon

 

 

10300SB1587sam001- 135 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 136 -LRB103 27840 SPS 61722 a

1        applicable, which shall be referred to for purposes of
2        this paragraph (11) as the project, and the
3        applicant's or owner's action plan and schedule for
4        achieving those goals.
5            (B) For purposes of this paragraph (11), diversity
6        composition shall be based on the percentage, which
7        shall be a minimum of 25%, of eligible expenditures
8        for contract awards for materials and services (which
9        shall be defined in the plan) to business enterprises
10        owned by minority persons, women, or persons with
11        disabilities as defined in Section 2 of the Business
12        Enterprise for Minorities, Women, and Persons with
13        Disabilities Act, to LGBTQ business enterprises, to
14        veteran-owned business enterprises, and to business
15        enterprises located in environmental justice
16        communities. The diversity composition goals of the
17        plan may include eligible expenditures in areas for
18        vendor or supplier opportunities in addition to
19        development and construction of the project, and may
20        exclude from eligible expenditures materials and
21        services with limited market availability, limited
22        production and availability from suppliers in the
23        United States, such as solar panels and storage
24        batteries, and material and services that are subject
25        to critical energy infrastructure or cybersecurity
26        requirements or restrictions. The plan may provide

 

 

10300SB1587sam001- 137 -LRB103 27840 SPS 61722 a

1        that the diversity composition goals may be met
2        through Tier 1 Direct or Tier 2 subcontracting
3        expenditures or a combination thereof for the project.
4            (C) The plan shall provide for, but not be limited
5        to: (i) internal initiatives, including multi-tier
6        initiatives, by the applicant or owner, or by its
7        engineering, procurement and construction contractor
8        if one is used for the project, which for purposes of
9        this paragraph (11) shall be referred to as the EPC
10        contractor, to enable diverse businesses to be
11        considered fairly for selection to provide materials
12        and services; (ii) requirements for the applicant or
13        owner or its EPC contractor to proactively solicit and
14        utilize diverse businesses to provide materials and
15        services; and (iii) requirements for the applicant or
16        owner or its EPC contractor to hire a diverse
17        workforce for the project. The plan shall include a
18        description of the applicant's or owner's diversity
19        recruiting efforts both for the project and for other
20        areas of the applicant's or owner's business
21        operations. The plan shall provide for the imposition
22        of financial penalties on the applicant's or owner's
23        EPC contractor for failure to exercise best efforts to
24        comply with and execute the EPC contractor's diversity
25        obligations under the plan. The plan may provide for
26        the applicant or owner to set aside a portion of the

 

 

10300SB1587sam001- 138 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 139 -LRB103 27840 SPS 61722 a

1Adjustable Block Program, and the equity prioritization for
2noncompetitive procurements, that is successful in advancing
3priority access to the clean energy economy for businesses and
4workers from communities that have been excluded from economic
5opportunities in the energy sector, have been subject to
6disproportionate levels of pollution, and have
7disproportionately experienced negative public health
8outcomes. Further, it is the purpose of this subsection to
9ensure that this equity accountability system is successful in
10advancing equity across Illinois by providing access to the
11clean energy economy for businesses and workers from
12communities that have been historically excluded from economic
13opportunities in the energy sector, have been subject to
14disproportionate levels of pollution, and have
15disproportionately experienced negative public health
16outcomes.
17        (1) Minimum equity standards. The Agency shall create
18    programs with the purpose of increasing access to and
19    development of equity eligible contractors, who are prime
20    contractors and subcontractors, across all of the programs
21    it manages. All applications for renewable energy credit
22    procurements shall comply with specific minimum equity
23    commitments. Starting in the delivery year immediately
24    following the next long-term renewable resources
25    procurement plan, at least 10% of the project workforce
26    for each entity participating in a procurement program

 

 

10300SB1587sam001- 140 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 141 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 142 -LRB103 27840 SPS 61722 a

1        equity standards for the prior delivery year. Waivers
2        approved for lack of equity eligible persons or equity
3        eligible contractors in a geographic area of a project
4        shall not count against the approved vendor or
5        designee. The Agency shall offer a corrective action
6        plan for any such entities to assist them in obtaining
7        compliance and shall allow continued access to
8        procurement programs upon an approved vendor or
9        designee demonstrating compliance.
10            (E) The Agency shall pursue efficiencies achieved
11        by combining with other approved vendor or designee
12        reporting.
13        (2) Equity accountability system within the Adjustable
14    Block program. The equity category described in item (vi)
15    of subparagraph (K) of subsection (c) is only available to
16    applicants that are equity eligible contractors.
17        (3) Equity accountability system within competitive
18    procurements. Through its long-term renewable resources
19    procurement plan, the Agency shall develop requirements
20    for ensuring that competitive procurement processes,
21    including utility-scale solar, utility-scale wind, and
22    brownfield site photovoltaic projects, advance the equity
23    goals of this subsection (c-10). Subject to Commission
24    approval, the Agency shall develop bid application
25    requirements and a bid evaluation methodology for ensuring
26    that utilization of equity eligible contractors, whether

 

 

10300SB1587sam001- 143 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 144 -LRB103 27840 SPS 61722 a

1        Administrator.
2            (C) A program for approved vendors, designees,
3        eligible persons, and equity eligible contractors to
4        receive trainings, guidance, and other support from
5        the Agency or its designee regarding the equity
6        category outlined in item (vi) of subparagraph (K) of
7        paragraph (1) of subsection (c) and in meeting the
8        minimum equity standards of this subsection (c-10).
9            (D) A process for certifying equity eligible
10        contractors and equity eligible persons. The
11        certification process shall coordinate with the Energy
12        Workforce Equity Database set forth in subsection
13        (c-25).
14            (E) An application for waiver of the minimum
15        equity standards of this subsection, which the Agency
16        shall have the discretion to grant in rare
17        circumstances. The Agency may grant such a waiver
18        where the applicant provides evidence of significant
19        efforts toward meeting the minimum equity commitment,
20        including: use of the Energy Workforce Equity
21        Database; efforts to hire or contract with entities
22        that hire eligible persons; and efforts to establish
23        contracting relationships with eligible contractors.
24        The Agency shall support applicants in understanding
25        the Energy Workforce Equity Database and other
26        resources for pursuing compliance of the minimum

 

 

10300SB1587sam001- 145 -LRB103 27840 SPS 61722 a

1        equity standards. Waivers shall be project-specific,
2        unless the Agency deems it necessary to grant a waiver
3        across a portfolio of projects, and in effect for no
4        longer than one year. Any waiver extension or
5        subsequent waiver request from an applicant shall be
6        subject to the requirements of this Section and shall
7        specify efforts made to reach compliance. When
8        considering whether to grant a waiver, and to what
9        extent, the Agency shall consider the degree to which
10        similarly situated applicants have been able to meet
11        these minimum equity commitments. For repeated waiver
12        requests for specific lack of eligible persons or
13        eligible contractors available, the Agency shall make
14        recommendations to target recruitment to add such
15        eligible persons or eligible contractors to the
16        database.
17        (5) The Agency shall collect information about work on
18    projects or portfolios of projects subject to these
19    minimum equity standards to ensure compliance with this
20    subsection (c-10). Reporting in furtherance of this
21    requirement may be combined with other annual reporting
22    requirements. Such reporting shall include proof of
23    certification of each equity eligible contractor or equity
24    eligible person during the applicable time period.
25        (6) The Agency shall keep confidential all information
26    and communication that provides private or personal

 

 

10300SB1587sam001- 146 -LRB103 27840 SPS 61722 a

1    information.
2        (7) Modifications to the equity accountability system.
3    As part of the update of the long-term renewable resources
4    procurement plan to be initiated in 2023, or sooner if the
5    Agency deems necessary, the Agency shall determine the
6    extent to which the equity accountability system described
7    in this subsection (c-10) has advanced the goals of this
8    amendatory Act of the 102nd General Assembly, including
9    through the inclusion of equity eligible persons and
10    equity eligible contractors in renewable energy credit
11    projects. If the Agency finds that the equity
12    accountability system has failed to meet those goals to
13    its fullest potential, the Agency may revise the following
14    criteria for future Agency procurements: (A) the
15    percentage of project workforce, or other appropriate
16    workforce measure, certified as equity eligible persons or
17    equity eligible contractors; (B) definitions for equity
18    investment eligible persons and equity investment eligible
19    community; and (C) such other modifications necessary to
20    advance the goals of this amendatory Act of the 102nd
21    General Assembly effectively. Such revised criteria may
22    also establish distinct equity accountability systems for
23    different types of procurements or different regions of
24    the State if the Agency finds that doing so will further
25    the purposes of such programs. Revisions shall be
26    developed with stakeholder input, including from equity

 

 

10300SB1587sam001- 147 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 148 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 149 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 150 -LRB103 27840 SPS 61722 a

1        persons employed, contracted, or subcontracted through
2        the program and geographic location of the
3        headquarters of the business or entity that applies to
4        receive renewable energy credits from the Agency; and
5            (C) any other information the Agency determines is
6        necessary for the purpose of achieving the purpose of
7        this subsection.
8        (4) Publication of collected information. The Agency
9    shall publish, at least annually, information on the
10    demographics of program participants on an aggregate
11    basis.
12        (5) Nothing in this subsection shall be interpreted to
13    limit the authority of the Agency, or other agency or
14    department of the State, to require or collect demographic
15    information from applicants of other State programs.
16    (c-25) Energy Workforce Equity Database.
17        (1) The Agency, in consultation with the Department of
18    Commerce and Economic Opportunity, shall create an Energy
19    Workforce Equity Database, and may contract with a third
20    party to do so ("database program administrator"). If the
21    Department decides to contract with a third party, that
22    third party shall be exempt from the requirements of
23    Section 20-10 of the Illinois Procurement Code. The Energy
24    Workforce Equity Database shall be a searchable database
25    of suppliers, vendors, and subcontractors for clean energy
26    industries that is:

 

 

10300SB1587sam001- 151 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 152 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 153 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 154 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 155 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 156 -LRB103 27840 SPS 61722 a

1        during the year ending May 31, 2011 or 1.5% of the
2        amount paid per kilowatthour by those customers during
3        the year ending May 31, 2009;
4            (D) in 2013, the greater of an additional 0.5% of
5        the amount paid per kilowatthour by those customers
6        during the year ending May 31, 2012 or 2% of the amount
7        paid per kilowatthour by those customers during the
8        year ending May 31, 2009; and
9            (E) thereafter, the total amount paid under
10        sourcing agreements with clean coal facilities
11        pursuant to the procurement plan for any single year
12        shall be reduced by an amount necessary to limit the
13        estimated average net increase due to the cost of
14        these resources included in the amounts paid by
15        eligible retail customers in connection with electric
16        service to no more than the greater of (i) 2.015% of
17        the amount paid per kilowatthour by those customers
18        during the year ending May 31, 2009 or (ii) the
19        incremental amount per kilowatthour paid for these
20        resources in 2013. These requirements may be altered
21        only as provided by statute.
22        No later than June 30, 2015, the Commission shall
23    review the limitation on the total amount paid under
24    sourcing agreements, if any, with clean coal facilities
25    pursuant to this subsection (d) and report to the General
26    Assembly its findings as to whether that limitation unduly

 

 

10300SB1587sam001- 157 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 158 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 159 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 160 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 161 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 162 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 163 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 164 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 165 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 166 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 167 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 168 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 169 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 170 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 171 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 172 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 173 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 174 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 175 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 176 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 177 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 178 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 179 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 180 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 181 -LRB103 27840 SPS 61722 a

1            (C) No later than 45 days after June 1, 2017 (the
2        effective date of Public Act 99-906), the Agency shall
3        publish its proposed zero emission standard
4        procurement plan. The plan shall be consistent with
5        the provisions of this paragraph (1) and shall provide
6        that winning bids shall be selected based on public
7        interest criteria that include, but are not limited
8        to, minimizing carbon dioxide emissions that result
9        from electricity consumed in Illinois and minimizing
10        sulfur dioxide, nitrogen oxide, and particulate matter
11        emissions that adversely affect the citizens of this
12        State. In particular, the selection of winning bids
13        shall take into account the incremental environmental
14        benefits resulting from the procurement, such as any
15        existing environmental benefits that are preserved by
16        the procurements held under Public Act 99-906 and
17        would cease to exist if the procurements were not
18        held, including the preservation of zero emission
19        facilities. The plan shall also describe in detail how
20        each public interest factor shall be considered and
21        weighted in the bid selection process to ensure that
22        the public interest criteria are applied to the
23        procurement and given full effect.
24            For purposes of developing the plan, the Agency
25        shall consider any reports issued by a State agency,
26        board, or commission under House Resolution 1146 of

 

 

10300SB1587sam001- 182 -LRB103 27840 SPS 61722 a

1        the 98th General Assembly and paragraph (4) of
2        subsection (d) of this Section, as well as publicly
3        available analyses and studies performed by or for
4        regional transmission organizations that serve the
5        State and their independent market monitors.
6            Upon publishing of the zero emission standard
7        procurement plan, copies of the plan shall be posted
8        and made publicly available on the Agency's website.
9        All interested parties shall have 10 days following
10        the date of posting to provide comment to the Agency on
11        the plan. All comments shall be posted to the Agency's
12        website. Following the end of the comment period, but
13        no more than 60 days later than June 1, 2017 (the
14        effective date of Public Act 99-906), the Agency shall
15        revise the plan as necessary based on the comments
16        received and file its zero emission standard
17        procurement plan with the Commission.
18            If the Commission determines that the plan will
19        result in the procurement of cost-effective zero
20        emission credits, then the Commission shall, after
21        notice and hearing, but no later than 45 days after the
22        Agency filed the plan, approve the plan or approve
23        with modification. For purposes of this subsection
24        (d-5), "cost effective" means the projected costs of
25        procuring zero emission credits from zero emission
26        facilities do not cause the limit stated in paragraph

 

 

10300SB1587sam001- 183 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 184 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 185 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 186 -LRB103 27840 SPS 61722 a

1        date of Public Act 99-906).
2            (D) Following the procurement event described in
3        this paragraph (1) and consistent with subparagraph
4        (B) of this paragraph (1), the Agency shall calculate
5        the payments to be made under each contract for the
6        next delivery year based on the market price index for
7        that delivery year. The Agency shall publish the
8        payment calculations no later than May 25, 2017 and
9        every May 25 thereafter.
10            (E) Notwithstanding the requirements of this
11        subsection (d-5), the contracts executed under this
12        subsection (d-5) shall provide that the zero emission
13        facility may, as applicable, suspend or terminate
14        performance under the contracts in the following
15        instances:
16                (i) A zero emission facility shall be excused
17            from its performance under the contract for any
18            cause beyond the control of the resource,
19            including, but not restricted to, acts of God,
20            flood, drought, earthquake, storm, fire,
21            lightning, epidemic, war, riot, civil disturbance
22            or disobedience, labor dispute, labor or material
23            shortage, sabotage, acts of public enemy,
24            explosions, orders, regulations or restrictions
25            imposed by governmental, military, or lawfully
26            established civilian authorities, which, in any of

 

 

10300SB1587sam001- 187 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 188 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 189 -LRB103 27840 SPS 61722 a

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

 

 

10300SB1587sam001- 190 -LRB103 27840 SPS 61722 a

1    calculations required by this paragraph (2) shall be made
2    only once for each procurement plan year. Once the
3    determination as to the amount of zero emission credits to
4    be paid is made based on the calculations set forth in this
5    paragraph (2), no subsequent rate impact determinations
6    shall be made and no adjustments to those contract amounts
7    shall be allowed. All costs incurred under those contracts
8