SB1699 EnrolledLRB103 27684 AMQ 54061 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    under subsection (e) of Section 1-129 of the Illinois
2    Power Agency Act.
3(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
4101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
51-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
6eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
7101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
81-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
9eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
10102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
117-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
122-13-23.)
 
13    Section 10. The Illinois Power Agency Act is amended by
14changing Section 1-75 and adding Section 1-129 as follows:
 
15    (20 ILCS 3855/1-75)
16    (Text of Section before amendment by P.A. 103-380)
17    Sec. 1-75. Planning and Procurement Bureau. The Planning
18and Procurement Bureau has the following duties and
19responsibilities:
20    (a) The Planning and Procurement Bureau shall each year,
21beginning in 2008, develop procurement plans and conduct
22competitive procurement processes in accordance with the
23requirements of Section 16-111.5 of the Public Utilities Act
24for the eligible retail customers of electric utilities that

 

 

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1on December 31, 2005 provided electric service to at least
2100,000 customers in Illinois. Beginning with the delivery
3year commencing on June 1, 2017, the Planning and Procurement
4Bureau shall develop plans and processes for the procurement
5of zero emission credits from zero emission facilities in
6accordance with the requirements of subsection (d-5) of this
7Section. Beginning on the effective date of this amendatory
8Act of the 102nd General Assembly, the Planning and
9Procurement Bureau shall develop plans and processes for the
10procurement of carbon mitigation credits from carbon-free
11energy resources in accordance with the requirements of
12subsection (d-10) of this Section. The Planning and
13Procurement Bureau shall also develop procurement plans and
14conduct competitive procurement processes in accordance with
15the requirements of Section 16-111.5 of the Public Utilities
16Act for the eligible retail customers of small
17multi-jurisdictional electric utilities that (i) on December
1831, 2005 served less than 100,000 customers in Illinois and
19(ii) request a procurement plan for their Illinois
20jurisdictional load. This Section shall not apply to a small
21multi-jurisdictional utility until such time as a small
22multi-jurisdictional utility requests the Agency to prepare a
23procurement plan for their Illinois jurisdictional load. For
24the purposes of this Section, the term "eligible retail
25customers" has the same definition as found in Section
2616-111.5(a) of the Public Utilities Act.

 

 

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1    Beginning with the plan or plans to be implemented in the
22017 delivery year, the Agency shall no longer include the
3procurement of renewable energy resources in the annual
4procurement plans required by this subsection (a), except as
5provided in subsection (q) of Section 16-111.5 of the Public
6Utilities Act, and shall instead develop a long-term renewable
7resources procurement plan in accordance with subsection (c)
8of this Section and Section 16-111.5 of the Public Utilities
9Act.
10    In accordance with subsection (c-5) of this Section, the
11Planning and Procurement Bureau shall oversee the procurement
12by electric utilities that served more than 300,000 retail
13customers in this State as of January 1, 2019 of renewable
14energy credits from new utility-scale solar projects to be
15installed, along with energy storage facilities, at or
16adjacent to the sites of electric generating facilities that,
17as of January 1, 2016, burned coal as their primary fuel
18source.
19        (1) The Agency shall each year, beginning in 2008, as
20    needed, issue a request for qualifications for experts or
21    expert consulting firms to develop the procurement plans
22    in accordance with Section 16-111.5 of the Public
23    Utilities Act. In order to qualify an expert or expert
24    consulting firm must have:
25            (A) direct previous experience assembling
26        large-scale power supply plans or portfolios for

 

 

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

 

 

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

 

 

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

 

 

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1    as procurement administrator based on the proposals
2    submitted. If the Commission rejects, within 5 days, the
3    Agency's selection, the Agency shall submit another
4    recommendation within 3 days based on the proposals
5    submitted. The Agency shall award a 5-year contract to the
6    expert or expert consulting firm so selected with
7    Commission approval.
8    (b) The experts or expert consulting firms retained by the
9Agency shall, as appropriate, prepare procurement plans, and
10conduct a competitive procurement process as prescribed in
11Section 16-111.5 of the Public Utilities Act, to ensure
12adequate, reliable, affordable, efficient, and environmentally
13sustainable electric service at the lowest total cost over
14time, taking into account any benefits of price stability, for
15eligible retail customers of electric utilities that on
16December 31, 2005 provided electric service to at least
17100,000 customers in the State of Illinois, and for eligible
18Illinois retail customers of small multi-jurisdictional
19electric utilities that (i) on December 31, 2005 served less
20than 100,000 customers in Illinois and (ii) request a
21procurement plan for their Illinois jurisdictional load.
22    (c) Renewable portfolio standard.
23        (1)(A) The Agency shall develop a long-term renewable
24    resources procurement plan that shall include procurement
25    programs and competitive procurement events necessary to
26    meet the goals set forth in this subsection (c). The

 

 

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

 

 

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1    at least 1.5% each delivery year thereafter to at least
2    25% by the 2025 delivery year; increasing by at least 3%
3    each delivery year thereafter to at least 40% by the 2030
4    delivery year, and continuing at no less than 40% for each
5    delivery year thereafter. The Agency shall attempt to
6    procure 50% by delivery year 2040. The Agency shall
7    determine the annual increase between delivery year 2030
8    and delivery year 2040, if any, taking into account energy
9    demand, other energy resources, and other public policy
10    goals. In the event of a conflict between these goals and
11    the new wind and new photovoltaic procurement requirements
12    described in items (i) through (iii) of subparagraph (C)
13    of this paragraph (1), the long-term plan shall prioritize
14    compliance with the new wind and new photovoltaic
15    procurement requirements described in items (i) through
16    (iii) of subparagraph (C) of this paragraph (1) over the
17    annual percentage targets described in this subparagraph
18    (B). The Agency shall not comply with the annual
19    percentage targets described in this subparagraph (B) by
20    procuring renewable energy credits that are unlikely to
21    lead to the development of new renewable resources.
22        For the delivery year beginning June 1, 2017, the
23    procurement plan shall attempt to include, subject to the
24    prioritization outlined in this subparagraph (B),
25    cost-effective renewable energy resources equal to at
26    least 13% of each utility's load for eligible retail

 

 

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

 

 

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1    attempt to procure 50% by delivery year 2040. The Agency
2    shall determine the annual increase between delivery year
3    2030 and delivery year 2040, if any, taking into account
4    energy demand, other energy resources, and other public
5    policy goals.
6        For each delivery year, the Agency shall first
7    recognize each utility's obligations for that delivery
8    year under existing contracts. Any renewable energy
9    credits under existing contracts, including renewable
10    energy credits as part of renewable energy resources,
11    shall be used to meet the goals set forth in this
12    subsection (c) for the delivery year.
13        (C) The long-term renewable resources procurement plan
14    described in subparagraph (A) of this paragraph (1) shall
15    include the procurement of renewable energy credits from
16    new projects in amounts equal to at least the following:
17            (i) 10,000,000 renewable energy credits delivered
18        annually by the end of the 2021 delivery year, and
19        increasing ratably to reach 45,000,000 renewable
20        energy credits delivered annually from new wind and
21        solar projects by the end of delivery year 2030 such
22        that the goals in subparagraph (B) of this paragraph
23        (1) are met entirely by procurements of renewable
24        energy credits from new wind and photovoltaic
25        projects. Of that amount, to the extent possible, the
26        Agency shall procure 45% from wind projects and 55%

 

 

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

 

 

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

 

 

SB1699 Enrolled- 23 -LRB103 27684 AMQ 54061 b

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

 

 

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

 

 

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

 

 

SB1699 Enrolled- 26 -LRB103 27684 AMQ 54061 b

1    subsequent rate impact determinations shall be made and no
2    adjustments to those contract amounts shall be allowed.
3    All costs incurred under such contracts shall be fully
4    recoverable by the electric utility as provided in this
5    Section.
6        (F) If the limitation on the amount of renewable
7    energy resources procured in subparagraph (E) of this
8    paragraph (1) prevents the Agency from meeting all of the
9    goals in this subsection (c), the Agency's long-term plan
10    shall prioritize compliance with the requirements of this
11    subsection (c) regarding renewable energy credits in the
12    following order:
13            (i) renewable energy credits under existing
14        contractual obligations as of June 1, 2021;
15            (i-5) funding for the Illinois Solar for All
16        Program, as described in subparagraph (O) of this
17        paragraph (1);
18            (ii) renewable energy credits necessary to comply
19        with the new wind and new photovoltaic procurement
20        requirements described in items (i) through (iii) of
21        subparagraph (C) of this paragraph (1); and
22            (iii) renewable energy credits necessary to meet
23        the remaining requirements of this subsection (c).
24        (G) The following provisions shall apply to the
25    Agency's procurement of renewable energy credits under
26    this subsection (c):

 

 

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

 

 

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

 

 

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

 

 

SB1699 Enrolled- 30 -LRB103 27684 AMQ 54061 b

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

 

 

SB1699 Enrolled- 31 -LRB103 27684 AMQ 54061 b

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

 

 

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

 

 

SB1699 Enrolled- 33 -LRB103 27684 AMQ 54061 b

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

 

 

SB1699 Enrolled- 34 -LRB103 27684 AMQ 54061 b

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

 

 

SB1699 Enrolled- 35 -LRB103 27684 AMQ 54061 b

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

 

 

SB1699 Enrolled- 36 -LRB103 27684 AMQ 54061 b

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

 

 

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

 

 

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

 

 

SB1699 Enrolled- 39 -LRB103 27684 AMQ 54061 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1699 Enrolled- 54 -LRB103 27684 AMQ 54061 b

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

 

 

SB1699 Enrolled- 55 -LRB103 27684 AMQ 54061 b

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

 

 

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

 

 

SB1699 Enrolled- 57 -LRB103 27684 AMQ 54061 b

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

 

 

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

 

 

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

 

 

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1        not limited to, the number of equity eligible
2        contractors and capacity used in this item (vi) in
3        previous delivery years.
4            The Agency shall propose a payment structure for
5        contracts executed pursuant to this paragraph under
6        which, upon a demonstration of qualification or need,
7        applicant firms are advanced capital disbursed after
8        contract execution but before the contracted project's
9        energization. The amount or percentage of capital
10        advanced prior to project energization shall be
11        sufficient to both cover any increase in development
12        costs resulting from prevailing wage requirements or
13        project-labor agreements, and designed to overcome
14        barriers in access to capital faced by equity eligible
15        contractors. The amount or percentage of advanced
16        capital may vary by subcategory within this category
17        and by an applicant's demonstration of need, with such
18        levels to be established through the Long-Term
19        Renewable Resources Procurement Plan authorized under
20        subparagraph (A) of paragraph (1) of subsection (c) of
21        this Section.
22            Contracts developed featuring capital advanced
23        prior to a project's energization shall feature
24        provisions to ensure both the successful development
25        of applicant projects and the delivery of the
26        renewable energy credits for the full term of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        redacted from public entries.
2            (v) Through a filing in the proceeding for the
3        approval of its long-term renewable energy resources
4        procurement plan, the Agency shall provide an annual
5        written report to the Illinois Commerce Commission
6        documenting the frequency and nature of complaints and
7        any enforcement actions taken in response to those
8        complaints.
9            (vi) The Agency shall schedule regular meetings
10        with representatives of the Office of the Attorney
11        General, the Illinois Commerce Commission, consumer
12        protection groups, and other interested stakeholders
13        to share relevant information about consumer
14        protection, project compliance, and complaints
15        received.
16            (vii) To the extent that complaints received
17        implicate the jurisdiction of the Office of the
18        Attorney General, the Illinois Commerce Commission, or
19        local, State, or federal law enforcement, the Agency
20        shall also refer complaints to those entities as
21        appropriate.
22        (N) The Agency shall establish the terms, conditions,
23    and program requirements for photovoltaic community
24    renewable generation projects with a goal to expand access
25    to a broader group of energy consumers, to ensure robust
26    participation opportunities for residential and small

 

 

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1    commercial customers and those who cannot install
2    renewable energy on their own properties. Subject to
3    reasonable limitations, any plan approved by the
4    Commission shall allow subscriptions to community
5    renewable generation projects to be portable and
6    transferable. For purposes of this subparagraph (N),
7    "portable" means that subscriptions may be retained by the
8    subscriber even if the subscriber relocates or changes its
9    address within the same utility service territory; and
10    "transferable" means that a subscriber may assign or sell
11    subscriptions to another person within the same utility
12    service territory.
13        Through the development of its long-term renewable
14    resources procurement plan, the Agency may consider
15    whether community renewable generation projects utilizing
16    technologies other than photovoltaics should be supported
17    through State-administered incentive funding, and may
18    issue requests for information to gauge market demand.
19        Electric utilities shall provide a monetary credit to
20    a subscriber's subsequent bill for service for the
21    proportional output of a community renewable generation
22    project attributable to that subscriber as specified in
23    Section 16-107.5 of the Public Utilities Act.
24        The Agency shall purchase renewable energy credits
25    from subscribed shares of photovoltaic community renewable
26    generation projects through the Adjustable Block program

 

 

SB1699 Enrolled- 74 -LRB103 27684 AMQ 54061 b

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

 

 

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1    $50,000,000 per delivery year to fund the programs, and
2    the plan shall determine the amount of funding to be
3    apportioned to the programs identified in subsection (b)
4    of Section 1-56 of this Act; provided that for the
5    delivery years beginning June 1, 2021, June 1, 2022, and
6    June 1, 2023, the long-term renewable resources
7    procurement plan may average the annual budgets over a
8    3-year period to account for program ramp-up. For the
9    delivery years beginning June 1, 2021, June 1, 2024, June
10    1, 2027, and June 1, 2030 and additional $10,000,000 shall
11    be provided to the Department of Commerce and Economic
12    Opportunity to implement the workforce development
13    programs and reporting as outlined in Section 16-108.12 of
14    the Public Utilities Act. In making the determinations
15    required under this subparagraph (O), the Commission shall
16    consider the experience and performance under the programs
17    and any evaluation reports. The Commission shall also
18    provide for an independent evaluation of those programs on
19    a periodic basis that are funded under this subparagraph
20    (O).
21        (P) All programs and procurements under this
22    subsection (c) shall be designed to encourage
23    participating projects to use a diverse and equitable
24    workforce and a diverse set of contractors, including
25    minority-owned businesses, disadvantaged businesses,
26    trade unions, graduates of any workforce training programs

 

 

SB1699 Enrolled- 76 -LRB103 27684 AMQ 54061 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    increases, the Agency shall have the discretion to
2    establish different minimum equity standards for different
3    types of procurements and different regions of the State
4    if the Agency finds that doing so will further the
5    purposes of this subsection (c-10). The proposed schedule
6    of annual increases shall be revisited and updated on an
7    annual basis. Revisions shall be developed with
8    stakeholder input, including from equity eligible persons,
9    equity eligible contractors, clean energy industry
10    representatives, and community-based organizations that
11    work with such persons and contractors.
12            (A) At the start of each delivery year, the Agency
13        shall require a compliance plan from each entity
14        participating in a procurement program of subsection
15        (c) of this Section that demonstrates how they will
16        achieve compliance with the minimum equity standard
17        percentage for work completed in that delivery year.
18        If an entity applies for its approved vendor or
19        designee status between delivery years, the Agency
20        shall require a compliance plan at the time of
21        application.
22            (B) Halfway through each delivery year, the Agency
23        shall require each entity participating in a
24        procurement program to confirm that it will achieve
25        compliance in that delivery year, when applicable. The
26        Agency may offer corrective action plans to entities

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            sequestered at least 50% of the total carbon
2            emissions that the facility would otherwise emit
3            or that sequestration of emissions from prior
4            years has failed, resulting in the release of
5            carbon dioxide into the atmosphere, the owner of
6            the facility must offset excess emissions. Any
7            such carbon offsets must be permanent, additional,
8            verifiable, real, located within the State of
9            Illinois, and legally and practicably enforceable.
10            The cost of such offsets for the facility that are
11            not recoverable shall not exceed $15 million in
12            any given year. No costs of any such purchases of
13            carbon offsets may be recovered from a utility or
14            its customers. All carbon offsets purchased for
15            this purpose and any carbon emission credits
16            associated with sequestration of carbon from the
17            facility must be permanently retired. The initial
18            clean coal facility shall not forfeit its
19            designation as a clean coal facility if the
20            facility fails to fully comply with the applicable
21            carbon sequestration requirements in any given
22            year, provided the requisite offsets are
23            purchased. However, the Attorney General, on
24            behalf of the People of the State of Illinois, may
25            specifically enforce the facility's sequestration
26            requirement and the other terms of this contract

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            for each of the years 2005 through 2015, and the
2            projected zero emission credits to be generated
3            over the remaining useful life of the zero
4            emission facility, which shall be used to
5            determine the capability of each facility;
6                (iii) the annual zero emission facility cost
7            projections, expressed on a per megawatthour
8            basis, over the next 6 delivery years, which shall
9            include the following: operation and maintenance
10            expenses; fully allocated overhead costs, which
11            shall be allocated using the methodology developed
12            by the Institute for Nuclear Power Operations;
13            fuel expenditures; non-fuel capital expenditures;
14            spent fuel expenditures; a return on working
15            capital; the cost of operational and market risks
16            that could be avoided by ceasing operation; and
17            any other costs necessary for continued
18            operations, provided that "necessary" means, for
19            purposes of this item (iii), that the costs could
20            reasonably be avoided only by ceasing operations
21            of the zero emission facility; and
22                (iv) a commitment to continue operating, for
23            the duration of the contract or contracts executed
24            under the procurement held under this subsection
25            (d-5), the zero emission facility that produces
26            the zero emission credits to be procured in the

 

 

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1            procurement.
2            The information described in item (iii) of this
3        subparagraph (A) may be submitted on a confidential
4        basis and shall be treated and maintained by the
5        Agency, the procurement administrator, and the
6        Commission as confidential and proprietary and exempt
7        from disclosure under subparagraphs (a) and (g) of
8        paragraph (1) of Section 7 of the Freedom of
9        Information Act. The Office of Attorney General shall
10        have access to, and maintain the confidentiality of,
11        such information pursuant to Section 6.5 of the
12        Attorney General Act.
13            (B) The price for each zero emission credit
14        procured under this subsection (d-5) for each delivery
15        year shall be in an amount that equals the Social Cost
16        of Carbon, expressed on a price per megawatthour
17        basis. However, to ensure that the procurement remains
18        affordable to retail customers in this State if
19        electricity prices increase, the price in an
20        applicable delivery year shall be reduced below the
21        Social Cost of Carbon by the amount ("Price
22        Adjustment") by which the market price index for the
23        applicable delivery year exceeds the baseline market
24        price index for the consecutive 12-month period ending
25        May 31, 2016. If the Price Adjustment is greater than
26        or equal to the Social Cost of Carbon in an applicable

 

 

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1        delivery year, then no payments shall be due in that
2        delivery year. The components of this calculation are
3        defined as follows:
4                (i) Social Cost of Carbon: The Social Cost of
5            Carbon is $16.50 per megawatthour, which is based
6            on the U.S. Interagency Working Group on Social
7            Cost of Carbon's price in the August 2016
8            Technical Update using a 3% discount rate,
9            adjusted for inflation for each year of the
10            program. Beginning with the delivery year
11            commencing June 1, 2023, the price per
12            megawatthour shall increase by $1 per
13            megawatthour, and continue to increase by an
14            additional $1 per megawatthour each delivery year
15            thereafter.
16                (ii) Baseline market price index: The baseline
17            market price index for the consecutive 12-month
18            period ending May 31, 2016 is $31.40 per
19            megawatthour, which is based on the sum of (aa)
20            the average day-ahead energy price across all
21            hours of such 12-month period at the PJM
22            Interconnection LLC Northern Illinois Hub, (bb)
23            50% multiplied by the Base Residual Auction, or
24            its successor, capacity price for the rest of the
25            RTO zone group determined by PJM Interconnection
26            LLC, divided by 24 hours per day, and (cc) 50%

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        effective date of Public Act 99-906), the Agency shall
2        revise the plan as necessary based on the comments
3        received and file its zero emission standard
4        procurement plan with the Commission.
5            If the Commission determines that the plan will
6        result in the procurement of cost-effective zero
7        emission credits, then the Commission shall, after
8        notice and hearing, but no later than 45 days after the
9        Agency filed the plan, approve the plan or approve
10        with modification. For purposes of this subsection
11        (d-5), "cost effective" means the projected costs of
12        procuring zero emission credits from zero emission
13        facilities do not cause the limit stated in paragraph
14        (2) of this subsection to be exceeded.
15            (C-5) As part of the Commission's review and
16        acceptance or rejection of the procurement results,
17        the Commission shall, in its public notice of
18        successful bidders:
19                (i) identify how the winning bids satisfy the
20            public interest criteria described in subparagraph
21            (C) of this paragraph (1) of minimizing carbon
22            dioxide emissions that result from electricity
23            consumed in Illinois and minimizing sulfur
24            dioxide, nitrogen oxide, and particulate matter
25            emissions that adversely affect the citizens of
26            this State;

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1used once to comply with a single portfolio or other standard
2as set forth in subsection (c), subsection (d), or subsection
3(d-5) of this Section, respectively. A renewable energy
4credit, carbon emission credit, zero emission credit, or
5carbon mitigation credit cannot be used to satisfy the
6requirements of more than one standard. If more than one type
7of credit is issued for the same megawatt hour of energy, only
8one credit can be used to satisfy the requirements of a single
9standard. After such use, the credit must be retired together
10with any other credits issued for the same megawatt hour of
11energy.
12(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
13102-662, eff. 9-15-21.)
 
14    (Text of Section after amendment by P.A. 103-380)
15    Sec. 1-75. Planning and Procurement Bureau. The Planning
16and Procurement Bureau has the following duties and
17responsibilities:
18    (a) The Planning and Procurement Bureau shall each year,
19beginning in 2008, develop procurement plans and conduct
20competitive procurement processes in accordance with the
21requirements of Section 16-111.5 of the Public Utilities Act
22for the eligible retail customers of electric utilities that
23on December 31, 2005 provided electric service to at least
24100,000 customers in Illinois. Beginning with the delivery
25year commencing on June 1, 2017, the Planning and Procurement

 

 

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1Bureau shall develop plans and processes for the procurement
2of zero emission credits from zero emission facilities in
3accordance with the requirements of subsection (d-5) of this
4Section. Beginning on the effective date of this amendatory
5Act of the 102nd General Assembly, the Planning and
6Procurement Bureau shall develop plans and processes for the
7procurement of carbon mitigation credits from carbon-free
8energy resources in accordance with the requirements of
9subsection (d-10) of this Section. The Planning and
10Procurement Bureau shall also develop procurement plans and
11conduct competitive procurement processes in accordance with
12the requirements of Section 16-111.5 of the Public Utilities
13Act for the eligible retail customers of small
14multi-jurisdictional electric utilities that (i) on December
1531, 2005 served less than 100,000 customers in Illinois and
16(ii) request a procurement plan for their Illinois
17jurisdictional load. This Section shall not apply to a small
18multi-jurisdictional utility until such time as a small
19multi-jurisdictional utility requests the Agency to prepare a
20procurement plan for their Illinois jurisdictional load. For
21the purposes of this Section, the term "eligible retail
22customers" has the same definition as found in Section
2316-111.5(a) of the Public Utilities Act.
24    Beginning with the plan or plans to be implemented in the
252017 delivery year, the Agency shall no longer include the
26procurement of renewable energy resources in the annual

 

 

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

 

 

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

 

 

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

 

 

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