Rep. Lawrence "Larry" Walsh, Jr.

Filed: 11/2/2023

 

 


 

 


 
10300SB1699ham003LRB103 27684 SPS 65074 a

1
AMENDMENT TO SENATE BILL 1699

2    AMENDMENT NO. ______. Amend Senate Bill 1699, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Freedom of Information Act is amended by
6changing Section 7.5 as follows:
 
7    (5 ILCS 140/7.5)
8    Sec. 7.5. Statutory exemptions. To the extent provided for
9by the statutes referenced below, the following shall be
10exempt from inspection and copying:
11        (a) All information determined to be confidential
12    under Section 4002 of the Technology Advancement and
13    Development Act.
14        (b) Library circulation and order records identifying
15    library users with specific materials under the Library
16    Records Confidentiality Act.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Agency Licensing Act.
2        (hhh) Information submitted to the Illinois Department
3    of State Police in an affidavit or application for an
4    assault weapon endorsement, assault weapon attachment
5    endorsement, .50 caliber rifle endorsement, or .50 caliber
6    cartridge endorsement under the Firearm Owners
7    Identification Card Act.
8        (iii) Information prohibited from being disclosed
9    under subsection (e) of Section 1-129 of the Illinois
10    Power Agency Act.
11(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
12101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
131-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
14eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
15101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
161-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
17eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
18102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
197-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
202-13-23.)
 
21    Section 10. The Illinois Power Agency Act is amended by
22changing Section 1-75 and adding Section 1-129 as follows:
 
23    (20 ILCS 3855/1-75)
24    (Text of Section before amendment by P.A. 103-380)

 

 

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1    Sec. 1-75. Planning and Procurement Bureau. The Planning
2and Procurement Bureau has the following duties and
3responsibilities:
4    (a) The Planning and Procurement Bureau shall each year,
5beginning in 2008, develop procurement plans and conduct
6competitive procurement processes in accordance with the
7requirements of Section 16-111.5 of the Public Utilities Act
8for the eligible retail customers of electric utilities that
9on December 31, 2005 provided electric service to at least
10100,000 customers in Illinois. Beginning with the delivery
11year commencing on June 1, 2017, the Planning and Procurement
12Bureau shall develop plans and processes for the procurement
13of zero emission credits from zero emission facilities in
14accordance with the requirements of subsection (d-5) of this
15Section. Beginning on the effective date of this amendatory
16Act of the 102nd General Assembly, the Planning and
17Procurement Bureau shall develop plans and processes for the
18procurement of carbon mitigation credits from carbon-free
19energy resources in accordance with the requirements of
20subsection (d-10) of this Section. The Planning and
21Procurement Bureau shall also develop procurement plans and
22conduct competitive procurement processes in accordance with
23the requirements of Section 16-111.5 of the Public Utilities
24Act for the eligible retail customers of small
25multi-jurisdictional electric utilities that (i) on December
2631, 2005 served less than 100,000 customers in Illinois and

 

 

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1(ii) request a procurement plan for their Illinois
2jurisdictional load. This Section shall not apply to a small
3multi-jurisdictional utility until such time as a small
4multi-jurisdictional utility requests the Agency to prepare a
5procurement plan for their Illinois jurisdictional load. For
6the purposes of this Section, the term "eligible retail
7customers" has the same definition as found in Section
816-111.5(a) of the Public Utilities Act.
9    Beginning with the plan or plans to be implemented in the
102017 delivery year, the Agency shall no longer include the
11procurement of renewable energy resources in the annual
12procurement plans required by this subsection (a), except as
13provided in subsection (q) of Section 16-111.5 of the Public
14Utilities Act, and shall instead develop a long-term renewable
15resources procurement plan in accordance with subsection (c)
16of this Section and Section 16-111.5 of the Public Utilities
17Act.
18    In accordance with subsection (c-5) of this Section, the
19Planning and Procurement Bureau shall oversee the procurement
20by electric utilities that served more than 300,000 retail
21customers in this State as of January 1, 2019 of renewable
22energy credits from new utility-scale solar projects to be
23installed, along with energy storage facilities, at or
24adjacent to the sites of electric generating facilities that,
25as of January 1, 2016, burned coal as their primary fuel
26source.

 

 

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

 

 

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

 

 

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

 

 

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1    develop a procurement plan for the affected utilities and
2    to serve as procurement administrator.
3        (5) The Agency shall select an expert or expert
4    consulting firm to develop procurement plans based on the
5    proposals submitted and shall award contracts of up to 5
6    years to those selected.
7        (6) The Agency shall select an expert or expert
8    consulting firm, with approval of the Commission, to serve
9    as procurement administrator based on the proposals
10    submitted. If the Commission rejects, within 5 days, the
11    Agency's selection, the Agency shall submit another
12    recommendation within 3 days based on the proposals
13    submitted. The Agency shall award a 5-year contract to the
14    expert or expert consulting firm so selected with
15    Commission approval.
16    (b) The experts or expert consulting firms retained by the
17Agency shall, as appropriate, prepare procurement plans, and
18conduct a competitive procurement process as prescribed in
19Section 16-111.5 of the Public Utilities Act, to ensure
20adequate, reliable, affordable, efficient, and environmentally
21sustainable electric service at the lowest total cost over
22time, taking into account any benefits of price stability, for
23eligible retail customers of electric utilities that on
24December 31, 2005 provided electric service to at least
25100,000 customers in the State of Illinois, and for eligible
26Illinois retail customers of small multi-jurisdictional

 

 

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1electric utilities that (i) on December 31, 2005 served less
2than 100,000 customers in Illinois and (ii) request a
3procurement plan for their Illinois jurisdictional load.
4    (c) Renewable portfolio standard.
5        (1)(A) The Agency shall develop a long-term renewable
6    resources procurement plan that shall include procurement
7    programs and competitive procurement events necessary to
8    meet the goals set forth in this subsection (c). The
9    initial long-term renewable resources procurement plan
10    shall be released for comment no later than 160 days after
11    June 1, 2017 (the effective date of Public Act 99-906).
12    The Agency shall review, and may revise on an expedited
13    basis, the long-term renewable resources procurement plan
14    at least every 2 years, which shall be conducted in
15    conjunction with the procurement plan under Section
16    16-111.5 of the Public Utilities Act to the extent
17    practicable to minimize administrative expense. No later
18    than 120 days after the effective date of this amendatory
19    Act of the 102nd General Assembly, the Agency shall
20    release for comment a revision to the long-term renewable
21    resources procurement plan, updating elements of the most
22    recently approved plan as needed to comply with this
23    amendatory Act of the 102nd General Assembly, and any
24    long-term renewable resources procurement plan update
25    published by the Agency but not yet approved by the
26    Illinois Commerce Commission shall be withdrawn. The

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        environmental justice communities, as defined using
2        existing methodologies and findings used by the Agency
3        and its Administrator in its Illinois Solar for All
4        Program.
5            (ii) In any given delivery year, if forecasted
6        expenses are less than the maximum budget available
7        under subparagraph (E) of this paragraph (1), the
8        Agency shall continue to procure new renewable energy
9        credits until that budget is exhausted in the manner
10        outlined in item (i) of this subparagraph (C).
11            (iii) For purposes of this Section:
12            "New wind projects" means wind renewable energy
13        facilities that are energized after June 1, 2017 for
14        the delivery year commencing June 1, 2017.
15            "New photovoltaic projects" means photovoltaic
16        renewable energy facilities that are energized after
17        June 1, 2017. Photovoltaic projects developed under
18        Section 1-56 of this Act shall not apply towards the
19        new photovoltaic project requirements in this
20        subparagraph (C).
21            For purposes of calculating whether the Agency has
22        procured enough new wind and solar renewable energy
23        credits required by this subparagraph (C), renewable
24        energy facilities that have a multi-year renewable
25        energy credit delivery contract with the utility
26        through at least delivery year 2030 shall be

 

 

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 26 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 29 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 35 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 38 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 39 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 49 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 50 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 51 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 52 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 53 -LRB103 27684 SPS 65074 a

1    plan revision process described in Section 16-111.5 of the
2    Public Utilities Act. The Agency may define different
3    block sizes, purchase prices, or other distinct terms and
4    conditions for projects located in different utility
5    service territories if the Agency deems it necessary to
6    meet the goals in this subsection (c).
7        The Adjustable Block program shall include the
8    following categories in at least the following amounts:
9            (i) At least 20% from distributed renewable energy
10        generation devices with a nameplate capacity of no
11        more than 25 kilowatts.
12            (ii) At least 20% from distributed renewable
13        energy generation devices with a nameplate capacity of
14        more than 25 kilowatts and no more than 5,000
15        kilowatts. The Agency may create sub-categories within
16        this category to account for the differences between
17        projects for small commercial customers, large
18        commercial customers, and public or non-profit
19        customers.
20            (iii) At least 30% from photovoltaic community
21        renewable generation projects. Capacity for this
22        category for the first 2 delivery years after the
23        effective date of this amendatory Act of the 102nd
24        General Assembly shall be allocated to waitlist
25        projects as provided in paragraph (3) of item (iv) of
26        subparagraph (G). Starting in the third delivery year

 

 

10300SB1699ham003- 54 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 55 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 56 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 57 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 58 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 59 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 110 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 114 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 115 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 149 -LRB103 27684 SPS 65074 a

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

 

 

10300SB1699ham003- 150 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

10300SB1699ham003- 153 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

10300SB1699ham003- 155 -LRB103 27684 SPS 65074 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (2) As used in this subsection:
2    "Baseline costs" means costs used to establish a customer
3protection cap that have been evaluated through an independent
4audit of a carbon-free energy resource conducted by the
5Environmental Protection Agency that evaluated projected
6annual costs for operation and maintenance expenses; fully
7allocated overhead costs, which shall be allocated using the
8methodology developed by the Institute for Nuclear Power
9Operations; fuel expenditures; nonfuel capital expenditures;
10spent fuel expenditures; a return on working capital; the cost
11of operational and market risks that could be avoided by
12ceasing operation; and any other costs necessary for continued
13operations, provided that "necessary" means, for purposes of
14this definition, that the costs could reasonably be avoided
15only by ceasing operations of the carbon-free energy resource.
16    "Carbon mitigation credit" means a tradable credit that
17represents the carbon emission reduction attributes of one
18megawatt-hour of energy produced from a carbon-free energy
19resource.
20    "Carbon-free energy resource" means a generation facility
21that: (1) is fueled by nuclear power; and (2) is
22interconnected to PJM Interconnection, LLC.
23    (3) Procurement.
24        (A) Beginning with the delivery year commencing on
25    June 1, 2022, the Agency shall, for electric utilities
26    serving at least 3,000,000 retail customers in the State,

 

 

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1    seek to procure contracts for no more than approximately
2    54,500,000 cost-effective carbon mitigation credits from
3    carbon-free energy resources because such credits are
4    necessary to support current levels of carbon-free energy
5    generation and ensure the State meets its carbon dioxide
6    emissions reduction goals. The Agency shall not make a
7    partial award of a contract for carbon mitigation credits
8    covering a fractional amount of a carbon-free energy
9    resource's projected output.
10        (B) Each carbon-free energy resource that intends to
11    participate in a procurement shall be required to submit
12    to the Agency the following information for the resource
13    on or before the date established by the Agency:
14            (i) the in-service date and remaining useful life
15        of the carbon-free energy resource;
16            (ii) the amount of power generated annually for
17        each of the past 10 years, which shall be used to
18        determine the capability of each facility;
19            (iii) a commitment to be reflected in any contract
20        entered into pursuant to this subsection (d-10) to
21        continue operating the carbon-free energy resource at
22        a capacity factor of at least 88% annually on average
23        for the duration of the contract or contracts executed
24        under the procurement held under this subsection
25        (d-10), except in an instance described in
26        subparagraph (E) of paragraph (1) of subsection (d-5)

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (g) The Agency shall assess fees to each affected utility
2to recover the costs incurred in preparation of the annual
3procurement plan for the utility.
4    (h) The Agency shall assess fees to each bidder to recover
5the costs incurred in connection with a competitive
6procurement process.
7    (i) A renewable energy credit, carbon emission credit,
8zero emission credit, or carbon mitigation credit can only be
9used once to comply with a single portfolio or other standard
10as set forth in subsection (c), subsection (d), or subsection
11(d-5) of this Section, respectively. A renewable energy
12credit, carbon emission credit, zero emission credit, or
13carbon mitigation credit cannot be used to satisfy the
14requirements of more than one standard. If more than one type
15of credit is issued for the same megawatt hour of energy, only
16one credit can be used to satisfy the requirements of a single
17standard. After such use, the credit must be retired together
18with any other credits issued for the same megawatt hour of
19energy.
20(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
21102-662, eff. 9-15-21.)
 
22    (Text of Section after amendment by P.A. 103-380)
23    Sec. 1-75. Planning and Procurement Bureau. The Planning
24and Procurement Bureau has the following duties and
25responsibilities:

 

 

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1    (a) The Planning and Procurement Bureau shall each year,
2beginning in 2008, develop procurement plans and conduct
3competitive procurement processes in accordance with the
4requirements of Section 16-111.5 of the Public Utilities Act
5for the eligible retail customers of electric utilities that
6on December 31, 2005 provided electric service to at least
7100,000 customers in Illinois. Beginning with the delivery
8year commencing on June 1, 2017, the Planning and Procurement
9Bureau shall develop plans and processes for the procurement
10of zero emission credits from zero emission facilities in
11accordance with the requirements of subsection (d-5) of this
12Section. Beginning on the effective date of this amendatory
13Act of the 102nd General Assembly, the Planning and
14Procurement Bureau shall develop plans and processes for the
15procurement of carbon mitigation credits from carbon-free
16energy resources in accordance with the requirements of
17subsection (d-10) of this Section. The Planning and
18Procurement Bureau shall also develop procurement plans and
19conduct competitive procurement processes in accordance with
20the requirements of Section 16-111.5 of the Public Utilities
21Act for the eligible retail customers of small
22multi-jurisdictional electric utilities that (i) on December
2331, 2005 served less than 100,000 customers in Illinois and
24(ii) request a procurement plan for their Illinois
25jurisdictional load. This Section shall not apply to a small
26multi-jurisdictional utility until such time as a small

 

 

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1multi-jurisdictional utility requests the Agency to prepare a
2procurement plan for their Illinois jurisdictional load. For
3the purposes of this Section, the term "eligible retail
4customers" has the same definition as found in Section
516-111.5(a) of the Public Utilities Act.
6    Beginning with the plan or plans to be implemented in the
72017 delivery year, the Agency shall no longer include the
8procurement of renewable energy resources in the annual
9procurement plans required by this subsection (a), except as
10provided in subsection (q) of Section 16-111.5 of the Public
11Utilities Act, and shall instead develop a long-term renewable
12resources procurement plan in accordance with subsection (c)
13of this Section and Section 16-111.5 of the Public Utilities
14Act.
15    In accordance with subsection (c-5) of this Section, the
16Planning and Procurement Bureau shall oversee the procurement
17by electric utilities that served more than 300,000 retail
18customers in this State as of January 1, 2019 of renewable
19energy credits from new utility-scale solar projects to be
20installed, along with energy storage facilities, at or
21adjacent to the sites of electric generating facilities that,
22as of January 1, 2016, burned coal as their primary fuel
23source.
24        (1) The Agency shall each year, beginning in 2008, as
25    needed, issue a request for qualifications for experts or
26    expert consulting firms to develop the procurement plans

 

 

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

 

 

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

 

 

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