103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3957

 

Introduced 5/24/2024, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency shall develop a storage procurement plan that results in the electric utilities contracting for energy storage credits from contracted energy storage systems in specified amounts. Provides that the Agency is authorized to conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve, at minimum, certain energy storage standards. Provides that the Agency has the power to request, review, and accept proposals, execute contracts, and procure energy storage credits. Provides that for all procurements of energy storage credits, the Agency shall direct respondents to offer a strike price. Provides that all procurements under these provisions shall comply with the geographic requirements of the Act and shall follow the procurement processes and procedures described in the Act and the Public Utilities Act. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Provides that no later than December 31, 2026 and every 2 years thereafter, the Agency shall conduct an analysis to determine whether the contracted quantity of energy storage in energy storage capacity and energy storage duration is sufficient to support the State's renewable energy standards and carbon emission standards. Provides that, within 60 days of the effective date of the amendatory Act, specified electric utilities shall propose an initial tariff that meets certain requirements. Defines terms. Amends the Public Utilities Act. Creates the virtual power plant program, peak remediation program, and stand-alone energy storage distribution deployment program. Provides that the Illinois Commerce Commission shall establish an Office of Interconnection and Renewable Development. Sets forth the duties and responsibilities of the Office. Defines terms. Makes other changes.


LRB103 40954 SPS 74001 b

 

 

A BILL FOR

 

SB3957LRB103 40954 SPS 74001 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-5, 1-10, 1-20, and 1-75 and by adding
6Sections 1-93 and 1-94 as follows:
 
7    (20 ILCS 3855/1-5)
8    Sec. 1-5. Legislative declarations and findings. The
9General Assembly finds and declares:
10        (1) The health, welfare, and prosperity of all
11    Illinois residents require the provision of adequate,
12    reliable, affordable, efficient, and environmentally
13    sustainable electric service at the lowest total cost over
14    time, taking into account any benefits of price stability.
15        (1.5) To provide the highest quality of life for the
16    residents of Illinois and to provide for a clean and
17    healthy environment, it is the policy of this State to
18    rapidly transition to 100% clean energy by 2050.
19        (2) (Blank).
20        (3) (Blank).
21        (4) It is necessary to improve the process of
22    procuring electricity to serve Illinois residents, to
23    promote investment in energy efficiency and

 

 

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1    demand-response measures, and to maintain and support
2    development of clean coal technologies, generation
3    resources that operate at all hours of the day and under
4    all weather conditions, zero emission facilities, and
5    renewable resources.
6        (5) Procuring a diverse electricity supply portfolio
7    will ensure the lowest total cost over time for adequate,
8    reliable, efficient, and environmentally sustainable
9    electric service.
10        (6) Including renewable resources and zero emission
11    credits from zero emission facilities in that portfolio
12    will reduce long-term direct and indirect costs to
13    consumers by decreasing environmental impacts and by
14    avoiding or delaying the need for new generation,
15    transmission, and distribution infrastructure. Developing
16    new renewable energy resources in Illinois, including
17    brownfield solar projects and community solar projects,
18    will help to diversify Illinois electricity supply, avoid
19    and reduce pollution, reduce peak demand, and enhance
20    public health and well-being of Illinois residents.
21        (7) Developing community solar projects in Illinois
22    will help to expand access to renewable energy resources
23    to more Illinois residents.
24        (8) Developing brownfield solar projects in Illinois
25    will help return blighted or contaminated land to
26    productive use while enhancing public health and the

 

 

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1    well-being of Illinois residents, including those in
2    environmental justice communities.
3        (9) Energy efficiency, demand-response measures, zero
4    emission energy, and renewable energy are resources
5    currently underused in Illinois. These resources should be
6    used, when cost effective, to reduce costs to consumers,
7    improve reliability, and improve environmental quality and
8    public health.
9        (10) The State should encourage the use of advanced
10    clean coal technologies that capture and sequester carbon
11    dioxide emissions to advance environmental protection
12    goals and to demonstrate the viability of coal and
13    coal-derived fuels in a carbon-constrained economy.
14        (10.5) The State should encourage the development of
15    interregional high voltage direct current (HVDC)
16    transmission lines that benefit Illinois. All ratepayers
17    in the State served by the regional transmission
18    organization where the HVDC converter station is
19    interconnected benefit from the long-term price stability
20    and market access provided by interregional HVDC
21    transmission facilities. The benefits to Illinois include:
22    reduction in wholesale power prices; access to lower-cost
23    markets; enabling the integration of additional renewable
24    generating units within the State through near
25    instantaneous dispatchability and the provision of
26    ancillary services; creating good-paying union jobs in

 

 

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1    Illinois; and, enhancing grid reliability and climate
2    resilience via HVDC facilities that are installed
3    underground.
4        (10.6) The health, welfare, and safety of the people
5    of the State are advanced by developing new HVDC
6    transmission lines predominantly along transportation
7    rights-of-way, with an HVDC converter station that is
8    located in the service territory of a public utility as
9    defined in Section 3-105 of the Public Utilities Act
10    serving more than 3,000,000 retail customers, and with a
11    project labor agreement as defined in Section 1-10 of this
12    Act.
13        (11) The General Assembly enacted Public Act 96-0795
14    to reform the State's purchasing processes, recognizing
15    that government procurement is susceptible to abuse if
16    structural and procedural safeguards are not in place to
17    ensure independence, insulation, oversight, and
18    transparency.
19        (12) The principles that underlie the procurement
20    reform legislation apply also in the context of power
21    purchasing.
22        (13) To ensure that the benefits of installing
23    renewable resources are available to all Illinois
24    residents and located across the State, subject to
25    appropriation, it is necessary for the Agency to provide
26    public information and educational resources on how

 

 

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1    residents can benefit from the expansion of renewable
2    energy in Illinois and participate in the Illinois Solar
3    for All Program established in Section 1-56, the
4    Adjustable Block program established in Section 1-75, the
5    job training programs established by paragraph (1) of
6    subsection (a) of Section 16-108.12 of the Public
7    Utilities Act, and the programs and resources established
8    by the Energy Transition Act.
9        (14) The deployment of energy storage systems is
10    necessary to achieve high levels of renewable energy, to
11    avoid the use of peaking fossil fuel plants, and to
12    maintain an efficient, reliable, and resilient electric
13    grid.
14    The General Assembly therefore finds that it is necessary
15to create the Illinois Power Agency and that the goals and
16objectives of that Agency are to accomplish each of the
17following:
18        (A) Develop electricity procurement plans to ensure
19    adequate, reliable, affordable, efficient, and
20    environmentally sustainable electric service at the lowest
21    total cost over time, taking into account any benefits of
22    price stability, for electric utilities that on December
23    31, 2005 provided electric service to at least 100,000
24    customers in Illinois and for small multi-jurisdictional
25    electric utilities that (i) on December 31, 2005 served
26    less than 100,000 customers in Illinois and (ii) request a

 

 

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1    procurement plan for their Illinois jurisdictional load.
2    The procurement plan shall be updated on an annual basis
3    and shall include renewable energy resources and,
4    beginning with the delivery year commencing June 1, 2017,
5    zero emission credits from zero emission facilities
6    sufficient to achieve the standards specified in this Act.
7        (B) Conduct the competitive procurement processes
8    identified in this Act.
9        (C) Develop electric generation and co-generation
10    facilities that use indigenous coal or renewable
11    resources, or both, financed with bonds issued by the
12    Illinois Finance Authority.
13        (D) Supply electricity from the Agency's facilities at
14    cost to one or more of the following: municipal electric
15    systems, governmental aggregators, or rural electric
16    cooperatives in Illinois.
17        (E) Ensure that the process of power procurement is
18    conducted in an ethical and transparent fashion, immune
19    from improper influence.
20        (F) Continue to review its policies and practices to
21    determine how best to meet its mission of providing the
22    lowest cost power to the greatest number of people, at any
23    given point in time, in accordance with applicable law.
24        (G) Operate in a structurally insulated, independent,
25    and transparent fashion so that nothing impedes the
26    Agency's mission to secure power at the best prices the

 

 

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1    market will bear, provided that the Agency meets all
2    applicable legal requirements.
3        (H) Implement renewable energy procurement and
4    training programs throughout the State to diversify
5    Illinois electricity supply, improve reliability, avoid
6    and reduce pollution, reduce peak demand, and enhance
7    public health and well-being of Illinois residents,
8    including low-income residents.
9        (I) Implement procurements to cost-effectively deploy
10    contracted energy storage systems.
11(Source: P.A. 102-662, eff. 9-15-21.)
 
12    (20 ILCS 3855/1-10)
13    Sec. 1-10. Definitions.
14    "Agency" means the Illinois Power Agency.
15    "Agency loan agreement" means any agreement pursuant to
16which the Illinois Finance Authority agrees to loan the
17proceeds of revenue bonds issued with respect to a project to
18the Agency upon terms providing for loan repayment
19installments at least sufficient to pay when due all principal
20of, interest and premium, if any, on those revenue bonds, and
21providing for maintenance, insurance, and other matters in
22respect of the project.
23    "Authority" means the Illinois Finance Authority.
24    "Brownfield site photovoltaic project" means photovoltaics
25that are either:

 

 

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1        (1) interconnected to an electric utility as defined
2    in this Section, a municipal utility as defined in this
3    Section, a public utility as defined in Section 3-105 of
4    the Public Utilities Act, or an electric cooperative as
5    defined in Section 3-119 of the Public Utilities Act and
6    located at a site that is regulated by any of the following
7    entities under the following programs:
8            (A) the United States Environmental Protection
9        Agency under the federal Comprehensive Environmental
10        Response, Compensation, and Liability Act of 1980, as
11        amended;
12            (B) the United States Environmental Protection
13        Agency under the Corrective Action Program of the
14        federal Resource Conservation and Recovery Act, as
15        amended;
16            (C) the Illinois Environmental Protection Agency
17        under the Illinois Site Remediation Program; or
18            (D) the Illinois Environmental Protection Agency
19        under the Illinois Solid Waste Program; or
20        (2) located at the site of a coal mine that has
21    permanently ceased coal production, permanently halted any
22    re-mining operations, and is no longer accepting any coal
23    combustion residues; has both completed all clean-up and
24    remediation obligations under the federal Surface Mining
25    and Reclamation Act of 1977 and all applicable Illinois
26    rules and any other clean-up, remediation, or ongoing

 

 

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1    monitoring to safeguard the health and well-being of the
2    people of the State of Illinois, as well as demonstrated
3    compliance with all applicable federal and State
4    environmental rules and regulations, including, but not
5    limited, to 35 Ill. Adm. Code Part 845 and any rules for
6    historic fill of coal combustion residuals, including any
7    rules finalized in Subdocket A of Illinois Pollution
8    Control Board docket R2020-019.
9    "Clean coal facility" means an electric generating
10facility that uses primarily coal as a feedstock and that
11captures and sequesters carbon dioxide emissions at the
12following levels: at least 50% of the total carbon dioxide
13emissions that the facility would otherwise emit if, at the
14time construction commences, the facility is scheduled to
15commence operation before 2016, at least 70% of the total
16carbon dioxide emissions that the facility would otherwise
17emit if, at the time construction commences, the facility is
18scheduled to commence operation during 2016 or 2017, and at
19least 90% of the total carbon dioxide emissions that the
20facility would otherwise emit if, at the time construction
21commences, the facility is scheduled to commence operation
22after 2017. The power block of the clean coal facility shall
23not exceed allowable emission rates for sulfur dioxide,
24nitrogen oxides, carbon monoxide, particulates and mercury for
25a natural gas-fired combined-cycle facility the same size as
26and in the same location as the clean coal facility at the time

 

 

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1the clean coal facility obtains an approved air permit. All
2coal used by a clean coal facility shall have high volatile
3bituminous rank and greater than 1.7 pounds of sulfur per
4million Btu content, unless the clean coal facility does not
5use gasification technology and was operating as a
6conventional coal-fired electric generating facility on June
71, 2009 (the effective date of Public Act 95-1027).
8    "Clean coal SNG brownfield facility" means a facility that
9(1) has commenced construction by July 1, 2015 on an urban
10brownfield site in a municipality with at least 1,000,000
11residents; (2) uses a gasification process to produce
12substitute natural gas; (3) uses coal as at least 50% of the
13total feedstock over the term of any sourcing agreement with a
14utility and the remainder of the feedstock may be either
15petroleum coke or coal, with all such coal having a high
16bituminous rank and greater than 1.7 pounds of sulfur per
17million Btu content unless the facility reasonably determines
18that it is necessary to use additional petroleum coke to
19deliver additional consumer savings, in which case the
20facility shall use coal for at least 35% of the total feedstock
21over the term of any sourcing agreement; and (4) captures and
22sequesters at least 85% of the total carbon dioxide emissions
23that the facility would otherwise emit.
24    "Clean coal SNG facility" means a facility that uses a
25gasification process to produce substitute natural gas, that
26sequesters at least 90% of the total carbon dioxide emissions

 

 

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1that the facility would otherwise emit, that uses at least 90%
2coal as a feedstock, with all such coal having a high
3bituminous rank and greater than 1.7 pounds of sulfur per
4million Btu content, and that has a valid and effective permit
5to construct emission sources and air pollution control
6equipment and approval with respect to the federal regulations
7for Prevention of Significant Deterioration of Air Quality
8(PSD) for the plant pursuant to the federal Clean Air Act;
9provided, however, a clean coal SNG brownfield facility shall
10not be a clean coal SNG facility.
11    "Clean energy" means energy generation that is 90% or
12greater free of carbon dioxide emissions.
13    "Commission" means the Illinois Commerce Commission.
14    "Community renewable generation project" means an electric
15generating facility that:
16        (1) is powered by wind, solar thermal energy,
17    photovoltaic cells or panels, biodiesel, crops and
18    untreated and unadulterated organic waste biomass, and
19    hydropower that does not involve new construction of dams;
20        (2) is interconnected at the distribution system level
21    of an electric utility as defined in this Section, a
22    municipal utility as defined in this Section that owns or
23    operates electric distribution facilities, a public
24    utility as defined in Section 3-105 of the Public
25    Utilities Act, or an electric cooperative, as defined in
26    Section 3-119 of the Public Utilities Act;

 

 

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1        (3) credits the value of electricity generated by the
2    facility to the subscribers of the facility; and
3        (4) is limited in nameplate capacity to less than or
4    equal to 5,000 kilowatts.
5    "Costs incurred in connection with the development and
6construction of a facility" means:
7        (1) the cost of acquisition of all real property,
8    fixtures, and improvements in connection therewith and
9    equipment, personal property, and other property, rights,
10    and easements acquired that are deemed necessary for the
11    operation and maintenance of the facility;
12        (2) financing costs with respect to bonds, notes, and
13    other evidences of indebtedness of the Agency;
14        (3) all origination, commitment, utilization,
15    facility, placement, underwriting, syndication, credit
16    enhancement, and rating agency fees;
17        (4) engineering, design, procurement, consulting,
18    legal, accounting, title insurance, survey, appraisal,
19    escrow, trustee, collateral agency, interest rate hedging,
20    interest rate swap, capitalized interest, contingency, as
21    required by lenders, and other financing costs, and other
22    expenses for professional services; and
23        (5) the costs of plans, specifications, site study and
24    investigation, installation, surveys, other Agency costs
25    and estimates of costs, and other expenses necessary or
26    incidental to determining the feasibility of any project,

 

 

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1    together with such other expenses as may be necessary or
2    incidental to the financing, insuring, acquisition, and
3    construction of a specific project and starting up,
4    commissioning, and placing that project in operation.
5    "Daily energy volatility index" means a calculation, for a
6contracted energy storage system, of the difference in average
7price per megawatt hour between the average of the "X" highest
8priced hours and the "X" lowest priced hours for each day,
9adjusted for energy storage round trip efficiency, in the
10day-ahead energy market of the energy storage duration of the
11contracted energy storage system for each day in the day-ahead
12energy market of the applicable pricing node of the
13independent system operator or regional transmission
14organization, where "X" equals the energy storage duration of
15the contracted energy storage system.
16    "Delivery services" has the same definition as found in
17Section 16-102 of the Public Utilities Act.
18    "Delivery year" means the consecutive 12-month period
19beginning June 1 of a given year and ending May 31 of the
20following year.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Director" means the Director of the Illinois Power
24Agency.
25    "Demand-response" means measures that decrease peak
26electricity demand or shift demand from peak to off-peak

 

 

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1periods.
2    "Distributed renewable energy generation device" means a
3device that is:
4        (1) powered by wind, solar thermal energy,
5    photovoltaic cells or panels, biodiesel, crops and
6    untreated and unadulterated organic waste biomass, tree
7    waste, and hydropower that does not involve new
8    construction of dams, waste heat to power systems, or
9    qualified combined heat and power systems;
10        (2) interconnected at the distribution system level of
11    either an electric utility as defined in this Section, a
12    municipal utility as defined in this Section that owns or
13    operates electric distribution facilities, or a rural
14    electric cooperative as defined in Section 3-119 of the
15    Public Utilities Act;
16        (3) located on the customer side of the customer's
17    electric meter and is primarily used to offset that
18    customer's electricity load; and
19        (4) (blank).
20    "Energy efficiency" means measures that reduce the amount
21of electricity or natural gas consumed in order to achieve a
22given end use. "Energy efficiency" includes voltage
23optimization measures that optimize the voltage at points on
24the electric distribution voltage system and thereby reduce
25electricity consumption by electric customers' end use
26devices. "Energy efficiency" also includes measures that

 

 

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1reduce the total Btus of electricity, natural gas, and other
2fuels needed to meet the end use or uses.
3    "Energy storage capacity" means the nameplate capacity of
4a contracted energy storage system, measured in megawatts AC.
5    "Energy storage credit" means a fungible credit that
6represents the flexibility value of a contracted energy
7storage system. An energy storage credit is produced for each
8one megawatt of energy storage capacity multiplied by the
9energy storage duration each day that the contracted energy
10storage system is interconnected with wholesale electricity
11markets.
12    "Energy storage credit counterparty" has the same meaning
13as "public utility" as defined in Section 3-105 of the Public
14Utilities Act.
15    "Energy storage credit value" means a price, measured in
16dollars per credit, calculated for each day for a contracted
17energy storage system by subtracting the daily energy
18volatility index and the reference capacity price from the
19energy storage strike price.
20    "Energy storage duration" means the number of hours over
21which an energy storage system is capable of continuously
22discharging energy at its full energy storage capacity.
23    "Energy storage round-trip efficiency" means the ratio of
24energy discharged from an energy storage system at its energy
25capacity divided by the energy used to charge the energy
26storage system at its energy capacity.

 

 

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

 

 

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1    pollution from the energy sector.
2    "Equity eligible persons" or "eligible persons" means
3persons who would most benefit from equitable investments by
4the State designed to combat discrimination, specifically:
5        (1) persons who graduate from or are current or former
6    participants in the Clean Jobs Workforce Network Program,
7    the Clean Energy Contractor Incubator Program, the
8    Illinois Climate Works Preapprenticeship Program,
9    Returning Residents Clean Jobs Training Program, or the
10    Clean Energy Primes Contractor Accelerator Program, and
11    the solar training pipeline and multi-cultural jobs
12    program created in paragraphs (a)(1) and (a)(3) of Section
13    16-208.12 of the Public Utilities Act;
14        (2) persons who are graduates of or currently enrolled
15    in the foster care system;
16        (3) persons who were formerly incarcerated;
17        (4) persons whose primary residence is in an equity
18    investment eligible community.
19    "Equity eligible contractor" means a business that is
20majority-owned by eligible persons, or a nonprofit or
21cooperative that is majority-governed by eligible persons, or
22is a natural person that is an eligible person offering
23personal services as an independent contractor.
24    "Facility" means an electric generating unit or a
25co-generating unit that produces electricity along with
26related equipment necessary to connect the facility to an

 

 

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

 

 

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1Conversion technology. "High voltage direct current
2transmission facilities" includes the high voltage direct
3current converter station itself and associated high voltage
4direct current transmission lines. Notwithstanding the
5preceding, after September 15, 2021 (the effective date of
6Public Act 102-662), an otherwise qualifying collection of
7equipment does not qualify as high voltage direct current
8transmission facilities unless its developer entered into a
9project labor agreement, is capable of transmitting
10electricity at 525kv with an Illinois converter station
11located and interconnected in the region of the PJM
12Interconnection, LLC, and the system does not operate as a
13public utility, as that term is defined in Section 3-105 of the
14Public Utilities Act.
15    "Hydropower" means any method of electricity generation or
16storage that results from the flow of water, including
17impoundment facilities, diversion facilities, and pumped
18storage facilities.
19    "Index price" means the real-time energy settlement price
20at the applicable Illinois trading hub, such as PJM-NIHUB or
21MISO-IL, for a given settlement period. "Index price" may
22mean, if a utility-scale wind facility or a utility-scale
23solar facility interconnected with an electric utility elects
24to use an alternative definition, the monthly settlement of
25the applicable seasonal qualifying facilities rate offered by
26the interconnecting electric utility.

 

 

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1    "Indexed credit" means a credit subject to a contract
2described in Section 1-93.
3    "Indexed renewable energy credit" means a tradable credit
4that represents the environmental attributes of one megawatt
5hour of energy produced from a renewable energy resource, the
6price of which shall be calculated by subtracting the strike
7price offered by a new utility-scale wind project or a new
8utility-scale photovoltaic project from the index price in a
9given settlement period.
10    "Indexed renewable energy credit counterparty" has the
11same meaning as "public utility" as defined in Section 3-105
12of the Public Utilities Act.
13    "Local government" means a unit of local government as
14defined in Section 1 of Article VII of the Illinois
15Constitution.
16    "Long-duration energy storage" means an energy storage
17system capable of dispatching energy at its full rated
18capacity for 10 or more hours.
19    "Long-term energy storage contract" means a contract for
20the purchase of energy storage credits generated by an energy
21storage system for a period of at least 15 years.
22    "Modernized" or "retooled" means the construction, repair,
23maintenance, or significant expansion of turbines and existing
24hydropower dams.
25    "Multi-day energy storage" means an energy storage system
26capable of dispatching energy at its full rated capacity for

 

 

SB3957- 21 -LRB103 40954 SPS 74001 b

1greater than 24 hours.
2    "Municipality" means a city, village, or incorporated
3town.
4    "Municipal utility" means a public utility owned and
5operated by any subdivision or municipal corporation of this
6State.
7    "Nameplate capacity" means the aggregate inverter
8nameplate capacity in kilowatts AC. "Nameplate capacity" does
9not include the capacity of an energy storage system
10associated with a renewable energy resource.
11    "Person" means any natural person, firm, partnership,
12corporation, either domestic or foreign, company, association,
13limited liability company, joint stock company, or association
14and includes any trustee, receiver, assignee, or personal
15representative thereof.
16    "Project" means the planning, bidding, and construction of
17a facility.
18    "Project labor agreement" means a pre-hire collective
19bargaining agreement that covers all terms and conditions of
20employment on a specific construction project and must include
21the following:
22        (1) provisions establishing the minimum hourly wage
23    for each class of labor organization employee;
24        (2) provisions establishing the benefits and other
25    compensation for each class of labor organization
26    employee;

 

 

SB3957- 22 -LRB103 40954 SPS 74001 b

1        (3) provisions establishing that no strike or disputes
2    will be engaged in by the labor organization employees;
3        (4) provisions establishing that no lockout or
4    disputes will be engaged in by the general contractor
5    building the project; and
6        (5) provisions for minorities and women, as defined
7    under the Business Enterprise for Minorities, Women, and
8    Persons with Disabilities Act, setting forth goals for
9    apprenticeship hours to be performed by minorities and
10    women and setting forth goals for total hours to be
11    performed by underrepresented minorities and women.
12    A labor organization and the general contractor building
13the project shall have the authority to include other terms
14and conditions as they deem necessary.
15    "Public utility" has the same definition as found in
16Section 3-105 of the Public Utilities Act.
17    "Qualified combined heat and power systems" means systems
18that, either simultaneously or sequentially, produce
19electricity and useful thermal energy from a single fuel
20source. Such systems are eligible for "renewable energy
21credits" in an amount equal to its total energy output where a
22renewable fuel is consumed or in an amount equal to the net
23reduction in nonrenewable fuel consumed on a total energy
24output basis.
25    "Real property" means any interest in land together with
26all structures, fixtures, and improvements thereon, including

 

 

SB3957- 23 -LRB103 40954 SPS 74001 b

1lands under water and riparian rights, any easements,
2covenants, licenses, leases, rights-of-way, uses, and other
3interests, together with any liens, judgments, mortgages, or
4other claims or security interests related to real property.
5    "Reference capacity price" means a price, measured in
6dollars per megawatt hours, representing the revenue available
7for a contracted energy storage system through participation
8in the MISO Planning Resource Auction or the PJM Base Residual
9Auction, or their successor resource adequacy constructs. The
10reference capacity price shall be calculated by adjusting the
11currently prevailing clearing price in the MISO Planning
12Resource Auction or the PJM Base Residual Action, or their
13successor resource adequacy constructs, by the accredited
14capacity of the contracted energy storage system and
15converting the units to megawatt hours.
16    "Renewable energy credit" means a tradable credit that
17represents the environmental attributes of one megawatt hour
18of energy produced from a renewable energy resource.
19    "Renewable energy resources" includes energy and its
20associated renewable energy credit or renewable energy credits
21from wind, solar thermal energy, photovoltaic cells and
22panels, biodiesel, anaerobic digestion, crops and untreated
23and unadulterated organic waste biomass, and hydropower that
24does not involve new construction of dams, waste heat to power
25systems, or qualified combined heat and power systems. For
26purposes of this Act, landfill gas produced in the State is

 

 

SB3957- 24 -LRB103 40954 SPS 74001 b

1considered a renewable energy resource. "Renewable energy
2resources" does not include the incineration or burning of
3tires, garbage, general household, institutional, and
4commercial waste, industrial lunchroom or office waste,
5landscape waste, railroad crossties, utility poles, or
6construction or demolition debris, other than untreated and
7unadulterated waste wood. "Renewable energy resources" also
8includes high voltage direct current renewable energy credits
9and the associated energy converted to alternating current by
10a high voltage direct current converter station to the extent
11that: (1) the generator of such renewable energy resource
12contracted with a third party to transmit the energy over the
13high voltage direct current transmission facilities, and (2)
14the third-party contracting for delivery of renewable energy
15resources over the high voltage direct current transmission
16facilities have ownership rights over the unretired associated
17high voltage direct current renewable energy credit.
18    "Retail customer" has the same definition as found in
19Section 16-102 of the Public Utilities Act.
20    "Revenue bond" means any bond, note, or other evidence of
21indebtedness issued by the Authority, the principal and
22interest of which is payable solely from revenues or income
23derived from any project or activity of the Agency.
24    "Sequester" means permanent storage of carbon dioxide by
25injecting it into a saline aquifer, a depleted gas reservoir,
26or an oil reservoir, directly or through an enhanced oil

 

 

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1recovery process that may involve intermediate storage,
2regardless of whether these activities are conducted by a
3clean coal facility, a clean coal SNG facility, a clean coal
4SNG brownfield facility, or a party with which a clean coal
5facility, clean coal SNG facility, or clean coal SNG
6brownfield facility has contracted for such purposes.
7    "Service area" has the same definition as found in Section
816-102 of the Public Utilities Act.
9    "Settlement period" means the period of time utilized by
10MISO and PJM and their successor organizations as the basis
11for settlement calculations in the real-time energy market.
12    "Sourcing agreement" means (i) in the case of an electric
13utility, an agreement between the owner of a clean coal
14facility and such electric utility, which agreement shall have
15terms and conditions meeting the requirements of paragraph (3)
16of subsection (d) of Section 1-75, (ii) in the case of an
17alternative retail electric supplier, an agreement between the
18owner of a clean coal facility and such alternative retail
19electric supplier, which agreement shall have terms and
20conditions meeting the requirements of Section 16-115(d)(5) of
21the Public Utilities Act, and (iii) in case of a gas utility,
22an agreement between the owner of a clean coal SNG brownfield
23facility and the gas utility, which agreement shall have the
24terms and conditions meeting the requirements of subsection
25(h-1) of Section 9-220 of the Public Utilities Act.
26    "Strike price" means a contract price for energy and

 

 

SB3957- 26 -LRB103 40954 SPS 74001 b

1renewable energy credits from a new utility-scale wind project
2or a new utility-scale photovoltaic project.
3    "Subscriber" means a person who (i) takes delivery service
4from an electric utility, and (ii) has a subscription of no
5less than 200 watts to a community renewable generation
6project that is located in the electric utility's service
7area. No subscriber's subscriptions may total more than 40% of
8the nameplate capacity of an individual community renewable
9generation project. Entities that are affiliated by virtue of
10a common parent shall not represent multiple subscriptions
11that total more than 40% of the nameplate capacity of an
12individual community renewable generation project.
13    "Subscription" means an interest in a community renewable
14generation project expressed in kilowatts, which is sized
15primarily to offset part or all of the subscriber's
16electricity usage.
17    "Substitute natural gas" or "SNG" means a gas manufactured
18by gasification of hydrocarbon feedstock, which is
19substantially interchangeable in use and distribution with
20conventional natural gas.
21    "Tolling agreement" means a contract of not less than 15
22years between the owner or operator of an energy storage
23system and an electric utility where the electric utility
24contracts for supply and other services from the energy
25storage system.
26    "Total resource cost test" or "TRC test" means a standard

 

 

SB3957- 27 -LRB103 40954 SPS 74001 b

1that is met if, for an investment in energy efficiency or
2demand-response measures, the benefit-cost ratio is greater
3than one. The benefit-cost ratio is the ratio of the net
4present value of the total benefits of the program to the net
5present value of the total costs as calculated over the
6lifetime of the measures. A total resource cost test compares
7the sum of avoided electric utility costs, representing the
8benefits that accrue to the system and the participant in the
9delivery of those efficiency measures and including avoided
10costs associated with reduced use of natural gas or other
11fuels, avoided costs associated with reduced water
12consumption, and avoided costs associated with reduced
13operation and maintenance costs, as well as other quantifiable
14societal benefits, to the sum of all incremental costs of
15end-use measures that are implemented due to the program
16(including both utility and participant contributions), plus
17costs to administer, deliver, and evaluate each demand-side
18program, to quantify the net savings obtained by substituting
19the demand-side program for supply resources. In calculating
20avoided costs of power and energy that an electric utility
21would otherwise have had to acquire, reasonable estimates
22shall be included of financial costs likely to be imposed by
23future regulations and legislation on emissions of greenhouse
24gases. In discounting future societal costs and benefits for
25the purpose of calculating net present values, a societal
26discount rate based on actual, long-term Treasury bond yields

 

 

SB3957- 28 -LRB103 40954 SPS 74001 b

1should be used. Notwithstanding anything to the contrary, the
2TRC test shall not include or take into account a calculation
3of market price suppression effects or demand reduction
4induced price effects.
5    "Utility-scale solar project" means an electric generating
6facility that:
7        (1) generates electricity using photovoltaic cells;
8    and
9        (2) has a nameplate capacity that is greater than
10    5,000 kilowatts.
11    "Utility-scale wind project" means an electric generating
12facility that:
13        (1) generates electricity using wind; and
14        (2) has a nameplate capacity that is greater than
15    5,000 kilowatts.
16    "Waste Heat to Power Systems" means systems that capture
17and generate electricity from energy that would otherwise be
18lost to the atmosphere without the use of additional fuel.
19    "Zero emission credit" means a tradable credit that
20represents the environmental attributes of one megawatt hour
21of energy produced from a zero emission facility.
22    "Zero emission facility" means a facility that: (1) is
23fueled by nuclear power; and (2) is interconnected with PJM
24Interconnection, LLC or the Midcontinent Independent System
25Operator, Inc., or their successors.
26(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;

 

 

SB3957- 29 -LRB103 40954 SPS 74001 b

1103-380, eff. 1-1-24.)
 
2    (20 ILCS 3855/1-20)
3    Sec. 1-20. General powers and duties of the Agency.
4    (a) The Agency is authorized to do each of the following:
5        (1) Develop electricity procurement plans to ensure
6    adequate, reliable, affordable, efficient, and
7    environmentally sustainable electric service at the lowest
8    total cost over time, taking into account any benefits of
9    price stability, for electric utilities that on December
10    31, 2005 provided electric service to at least 100,000
11    customers in Illinois and for small multi-jurisdictional
12    electric utilities that (A) on December 31, 2005 served
13    less than 100,000 customers in Illinois and (B) request a
14    procurement plan for their Illinois jurisdictional load.
15    Except as provided in paragraph (1.5) of this subsection
16    (a), the electricity procurement plans shall be updated on
17    an annual basis and shall include electricity generated
18    from renewable resources sufficient to achieve the
19    standards specified in this Act. Beginning with the
20    delivery year commencing June 1, 2017, develop procurement
21    plans to include zero emission credits generated from zero
22    emission facilities sufficient to achieve the standards
23    specified in this Act. Beginning with the delivery year
24    commencing on June 1, 2022, the Agency is authorized to
25    develop carbon mitigation credit procurement plans to

 

 

SB3957- 30 -LRB103 40954 SPS 74001 b

1    include carbon mitigation credits generated from
2    carbon-free energy resources sufficient to achieve the
3    standards specified in this Act.
4        (1.5) Develop a long-term renewable resources
5    procurement plan in accordance with subsection (c) of
6    Section 1-75 of this Act for renewable energy credits in
7    amounts sufficient to achieve the standards specified in
8    this Act for delivery years commencing June 1, 2017 and
9    for the programs and renewable energy credits specified in
10    Section 1-56 of this Act. Electricity procurement plans
11    for delivery years commencing after May 31, 2017, shall
12    not include procurement of renewable energy resources.
13        (2) Conduct competitive procurement processes to
14    procure the supply resources identified in the electricity
15    procurement plan, pursuant to Section 16-111.5 of the
16    Public Utilities Act, and, for the delivery year
17    commencing June 1, 2017, conduct procurement processes to
18    procure zero emission credits from zero emission
19    facilities, under subsection (d-5) of Section 1-75 of this
20    Act. For the delivery year commencing June 1, 2022, the
21    Agency is authorized to conduct procurement processes to
22    procure carbon mitigation credits from carbon-free energy
23    resources, under subsection (d-10) of Section 1-75 of this
24    Act.
25        (2.5) Beginning with the procurement for the 2017
26    delivery year, conduct competitive procurement processes

 

 

SB3957- 31 -LRB103 40954 SPS 74001 b

1    and implement programs to procure renewable energy credits
2    identified in the long-term renewable resources
3    procurement plan developed and approved under subsection
4    (c) of Section 1-75 of this Act and Section 16-111.5 of the
5    Public Utilities Act.
6        (2.10) Oversee the procurement by electric utilities
7    that served more than 300,000 customers in this State as
8    of January 1, 2019 of renewable energy credits from new
9    renewable energy facilities to be installed, along with
10    energy storage facilities, at or adjacent to the sites of
11    electric generating facilities that burned coal as their
12    primary fuel source as of January 1, 2016 in accordance
13    with subsection (c-5) of Section 1-75 of this Act.
14        (2.15) Oversee the procurement by electric utilities
15    of renewable energy credits from newly modernized or
16    retooled hydropower dams or dams that have been converted
17    to support hydropower generation.
18        (3) Develop electric generation and co-generation
19    facilities that use indigenous coal or renewable
20    resources, or both, financed with bonds issued by the
21    Illinois Finance Authority.
22        (4) Supply electricity from the Agency's facilities at
23    cost to one or more of the following: municipal electric
24    systems, governmental aggregators, or rural electric
25    cooperatives in Illinois.
26        (5) Conduct competitive solicitations to procure

 

 

SB3957- 32 -LRB103 40954 SPS 74001 b

1    energy storage credits sufficient to achieve, at minimum,
2    the energy storage standard under Section 1-93.
3    (b) Except as otherwise limited by this Act, the Agency
4has all of the powers necessary or convenient to carry out the
5purposes and provisions of this Act, including without
6limitation, each of the following:
7        (1) To have a corporate seal, and to alter that seal at
8    pleasure, and to use it by causing it or a facsimile to be
9    affixed or impressed or reproduced in any other manner.
10        (2) To use the services of the Illinois Finance
11    Authority necessary to carry out the Agency's purposes.
12        (3) To negotiate and enter into loan agreements and
13    other agreements with the Illinois Finance Authority.
14        (4) To obtain and employ personnel and hire
15    consultants that are necessary to fulfill the Agency's
16    purposes, and to make expenditures for that purpose within
17    the appropriations for that purpose.
18        (5) To purchase, receive, take by grant, gift, devise,
19    bequest, or otherwise, lease, or otherwise acquire, own,
20    hold, improve, employ, use, and otherwise deal in and
21    with, real or personal property whether tangible or
22    intangible, or any interest therein, within the State.
23        (6) To acquire real or personal property, whether
24    tangible or intangible, including without limitation
25    property rights, interests in property, franchises,
26    obligations, contracts, and debt and equity securities,

 

 

SB3957- 33 -LRB103 40954 SPS 74001 b

1    and to do so by the exercise of the power of eminent domain
2    in accordance with Section 1-21; except that any real
3    property acquired by the exercise of the power of eminent
4    domain must be located within the State.
5        (7) To sell, convey, lease, exchange, transfer,
6    abandon, or otherwise dispose of, or mortgage, pledge, or
7    create a security interest in, any of its assets,
8    properties, or any interest therein, wherever situated.
9        (8) To purchase, take, receive, subscribe for, or
10    otherwise acquire, hold, make a tender offer for, vote,
11    employ, sell, lend, lease, exchange, transfer, or
12    otherwise dispose of, mortgage, pledge, or grant a
13    security interest in, use, and otherwise deal in and with,
14    bonds and other obligations, shares, or other securities
15    (or interests therein) issued by others, whether engaged
16    in a similar or different business or activity.
17        (9) To make and execute agreements, contracts, and
18    other instruments necessary or convenient in the exercise
19    of the powers and functions of the Agency under this Act,
20    including contracts with any person, including personal
21    service contracts, or with any local government, State
22    agency, or other entity; and all State agencies and all
23    local governments are authorized to enter into and do all
24    things necessary to perform any such agreement, contract,
25    or other instrument with the Agency. No such agreement,
26    contract, or other instrument shall exceed 40 years.

 

 

SB3957- 34 -LRB103 40954 SPS 74001 b

1        (10) To lend money, invest and reinvest its funds in
2    accordance with the Public Funds Investment Act, and take
3    and hold real and personal property as security for the
4    payment of funds loaned or invested.
5        (11) To borrow money at such rate or rates of interest
6    as the Agency may determine, issue its notes, bonds, or
7    other obligations to evidence that indebtedness, and
8    secure any of its obligations by mortgage or pledge of its
9    real or personal property, machinery, equipment,
10    structures, fixtures, inventories, revenues, grants, and
11    other funds as provided or any interest therein, wherever
12    situated.
13        (12) To enter into agreements with the Illinois
14    Finance Authority to issue bonds whether or not the income
15    therefrom is exempt from federal taxation.
16        (13) To procure insurance against any loss in
17    connection with its properties or operations in such
18    amount or amounts and from such insurers, including the
19    federal government, as it may deem necessary or desirable,
20    and to pay any premiums therefor.
21        (14) To negotiate and enter into agreements with
22    trustees or receivers appointed by United States
23    bankruptcy courts or federal district courts or in other
24    proceedings involving adjustment of debts and authorize
25    proceedings involving adjustment of debts and authorize
26    legal counsel for the Agency to appear in any such

 

 

SB3957- 35 -LRB103 40954 SPS 74001 b

1    proceedings.
2        (15) To file a petition under Chapter 9 of Title 11 of
3    the United States Bankruptcy Code or take other similar
4    action for the adjustment of its debts.
5        (16) To enter into management agreements for the
6    operation of any of the property or facilities owned by
7    the Agency.
8        (17) To enter into an agreement to transfer and to
9    transfer any land, facilities, fixtures, or equipment of
10    the Agency to one or more municipal electric systems,
11    governmental aggregators, or rural electric agencies or
12    cooperatives, for such consideration and upon such terms
13    as the Agency may determine to be in the best interest of
14    the residents of Illinois.
15        (18) To enter upon any lands and within any building
16    whenever in its judgment it may be necessary for the
17    purpose of making surveys and examinations to accomplish
18    any purpose authorized by this Act.
19        (19) To maintain an office or offices at such place or
20    places in the State as it may determine.
21        (20) To request information, and to make any inquiry,
22    investigation, survey, or study that the Agency may deem
23    necessary to enable it effectively to carry out the
24    provisions of this Act.
25        (21) To accept and expend appropriations.
26        (22) To engage in any activity or operation that is

 

 

SB3957- 36 -LRB103 40954 SPS 74001 b

1    incidental to and in furtherance of efficient operation to
2    accomplish the Agency's purposes, including hiring
3    employees that the Director deems essential for the
4    operations of the Agency.
5        (23) To adopt, revise, amend, and repeal rules with
6    respect to its operations, properties, and facilities as
7    may be necessary or convenient to carry out the purposes
8    of this Act, subject to the provisions of the Illinois
9    Administrative Procedure Act and Sections 1-22 and 1-35 of
10    this Act.
11        (24) To establish and collect charges and fees as
12    described in this Act.
13        (25) To conduct competitive gasification feedstock
14    procurement processes to procure the feedstocks for the
15    clean coal SNG brownfield facility in accordance with the
16    requirements of Section 1-78 of this Act.
17        (26) To review, revise, and approve sourcing
18    agreements and mediate and resolve disputes between gas
19    utilities and the clean coal SNG brownfield facility
20    pursuant to subsection (h-1) of Section 9-220 of the
21    Public Utilities Act.
22        (27) To request, review and accept proposals, execute
23    contracts, purchase renewable energy credits and otherwise
24    dedicate funds from the Illinois Power Agency Renewable
25    Energy Resources Fund to create and carry out the
26    objectives of the Illinois Solar for All Program in

 

 

SB3957- 37 -LRB103 40954 SPS 74001 b

1    accordance with Section 1-56 of this Act.
2        (28) To ensure Illinois residents and business benefit
3    from programs administered by the Agency and are properly
4    protected from any deceptive or misleading marketing
5    practices by participants in the Agency's programs and
6    procurements.
7        (29) To request, review, and accept proposals, execute
8    contracts, and procure energy storage credits.
9    (c) In conducting the procurement of electricity or other
10products, beginning January 1, 2022, the Agency shall not
11procure any products or services from persons or organizations
12that are in violation of the Displaced Energy Workers Bill of
13Rights, as provided under the Energy Community Reinvestment
14Act at the time of the procurement event or fail to comply the
15labor standards established in subparagraph (Q) of paragraph
16(1) of subsection (c) of Section 1-75.
17(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
 
18    (20 ILCS 3855/1-75)
19    Sec. 1-75. Planning and Procurement Bureau. The Planning
20and Procurement Bureau has the following duties and
21responsibilities:
22    (a) The Planning and Procurement Bureau shall each year,
23beginning in 2008, develop procurement plans and conduct
24competitive procurement processes in accordance with the
25requirements of Section 16-111.5 of the Public Utilities Act

 

 

SB3957- 38 -LRB103 40954 SPS 74001 b

1for the eligible retail customers of electric utilities that
2on December 31, 2005 provided electric service to at least
3100,000 customers in Illinois. Beginning with the delivery
4year commencing on June 1, 2017, the Planning and Procurement
5Bureau shall develop plans and processes for the procurement
6of zero emission credits from zero emission facilities in
7accordance with the requirements of subsection (d-5) of this
8Section. Beginning on the effective date of this amendatory
9Act of the 102nd General Assembly, the Planning and
10Procurement Bureau shall develop plans and processes for the
11procurement of carbon mitigation credits from carbon-free
12energy resources in accordance with the requirements of
13subsection (d-10) of this Section. The Planning and
14Procurement Bureau shall also develop procurement plans and
15conduct competitive procurement processes in accordance with
16the requirements of Section 16-111.5 of the Public Utilities
17Act for the eligible retail customers of small
18multi-jurisdictional electric utilities that (i) on December
1931, 2005 served less than 100,000 customers in Illinois and
20(ii) request a procurement plan for their Illinois
21jurisdictional load. This Section shall not apply to a small
22multi-jurisdictional utility until such time as a small
23multi-jurisdictional utility requests the Agency to prepare a
24procurement plan for their Illinois jurisdictional load. For
25the purposes of this Section, the term "eligible retail
26customers" has the same definition as found in Section

 

 

SB3957- 39 -LRB103 40954 SPS 74001 b

116-111.5(a) of the Public Utilities Act.
2    Beginning with the plan or plans to be implemented in the
32017 delivery year, the Agency shall no longer include the
4procurement of renewable energy resources in the annual
5procurement plans required by this subsection (a), except as
6provided in subsection (q) of Section 16-111.5 of the Public
7Utilities Act, and shall instead develop a long-term renewable
8resources procurement plan in accordance with subsection (c)
9of this Section and Section 16-111.5 of the Public Utilities
10Act.
11    In accordance with subsection (c-5) of this Section, the
12Planning and Procurement Bureau shall oversee the procurement
13by electric utilities that served more than 300,000 retail
14customers in this State as of January 1, 2019 of renewable
15energy credits from new utility-scale solar projects to be
16installed, along with energy storage facilities, at or
17adjacent to the sites of electric generating facilities that,
18as of January 1, 2016, burned coal as their primary fuel
19source.
20        (1) The Agency shall each year, beginning in 2008, as
21    needed, issue a request for qualifications for experts or
22    expert consulting firms to develop the procurement plans
23    in accordance with Section 16-111.5 of the Public
24    Utilities Act. In order to qualify an expert or expert
25    consulting firm must have:
26            (A) direct previous experience assembling

 

 

SB3957- 40 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 41 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 42 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 43 -LRB103 40954 SPS 74001 b

1    consulting firm, with approval of the Commission, to serve
2    as procurement administrator based on the proposals
3    submitted. If the Commission rejects, within 5 days, the
4    Agency's selection, the Agency shall submit another
5    recommendation within 3 days based on the proposals
6    submitted. The Agency shall award a 5-year contract to the
7    expert or expert consulting firm so selected with
8    Commission approval.
9    (b) The experts or expert consulting firms retained by the
10Agency shall, as appropriate, prepare procurement plans, and
11conduct a competitive procurement process as prescribed in
12Section 16-111.5 of the Public Utilities Act, to ensure
13adequate, reliable, affordable, efficient, and environmentally
14sustainable electric service at the lowest total cost over
15time, taking into account any benefits of price stability, for
16eligible retail customers of electric utilities that on
17December 31, 2005 provided electric service to at least
18100,000 customers in the State of Illinois, and for eligible
19Illinois retail customers of small multi-jurisdictional
20electric utilities that (i) on December 31, 2005 served less
21than 100,000 customers in Illinois and (ii) request a
22procurement plan for their Illinois jurisdictional load.
23    (c) Renewable portfolio standard.
24        (1)(A) The Agency shall develop a long-term renewable
25    resources procurement plan that shall include procurement
26    programs and competitive procurement events necessary to

 

 

SB3957- 44 -LRB103 40954 SPS 74001 b

1    meet the goals set forth in this subsection (c). The
2    initial long-term renewable resources procurement plan
3    shall be released for comment no later than 160 days after
4    June 1, 2017 (the effective date of Public Act 99-906).
5    The Agency shall review, and may revise on an expedited
6    basis, the long-term renewable resources procurement plan
7    at least every 2 years, which shall be conducted in
8    conjunction with the procurement plan under Section
9    16-111.5 of the Public Utilities Act to the extent
10    practicable to minimize administrative expense. No later
11    than 120 days after the effective date of this amendatory
12    Act of the 103rd General Assembly, the Agency shall
13    release for comment a revision to the long-term renewable
14    resources procurement plan, updating elements of the most
15    recently approved plan as needed to comply with this
16    amendatory Act of the 103rd General Assembly, and any
17    long-term renewable resources procurement plan update
18    published by the Agency but not yet approved by the
19    Illinois Commerce Commission shall be withdrawn. The
20    long-term renewable resources procurement plans shall be
21    subject to review and approval by the Commission under
22    Section 16-111.5 of the Public Utilities Act.
23        (B) Subject to subparagraph (F) of this paragraph (1),
24    the long-term renewable resources procurement plan shall
25    attempt to meet the goals for procurement of renewable
26    energy credits at levels of at least the following overall

 

 

SB3957- 45 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 46 -LRB103 40954 SPS 74001 b

1    prioritization outlined in this subparagraph (B),
2    cost-effective renewable energy resources equal to at
3    least 13% of each utility's load for eligible retail
4    customers and 13% of the applicable portion of each
5    utility's load for retail customers who are not eligible
6    retail customers, which applicable portion shall equal 50%
7    of the utility's load for retail customers who are not
8    eligible retail customers on February 28, 2017.
9        For the delivery year beginning June 1, 2018, the
10    procurement plan shall attempt to include, subject to the
11    prioritization outlined in this subparagraph (B),
12    cost-effective renewable energy resources equal to at
13    least 14.5% of each utility's load for eligible retail
14    customers and 14.5% of the applicable portion of each
15    utility's load for retail customers who are not eligible
16    retail customers, which applicable portion shall equal 75%
17    of the utility's load for retail customers who are not
18    eligible retail customers on February 28, 2017.
19        For the delivery year beginning June 1, 2019, and for
20    each year thereafter, the procurement plans shall attempt
21    to include, subject to the prioritization outlined in this
22    subparagraph (B), cost-effective renewable energy
23    resources equal to a minimum percentage of each utility's
24    load for all retail customers as follows: 16% by June 1,
25    2019; increasing by 1.5% each year thereafter to 25% by
26    June 1, 2025; and 25% by June 1, 2026; increasing by at

 

 

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

 

 

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1        (B) of this paragraph (1) are met entirely by
2        procurements of renewable energy credits from new wind
3        and photovoltaic projects. Of that amount, to the
4        extent possible, the Agency shall endeavor to procure
5        45% from new and repowered wind and hydropower
6        projects and shall procure at least 55% from
7        photovoltaic projects. Of the amount to be procured
8        from photovoltaic projects, the Agency shall procure:
9        at least 50% from solar photovoltaic projects using
10        the program outlined in subparagraph (K) of this
11        paragraph (1) from distributed renewable energy
12        generation devices or community renewable generation
13        projects; at least 47% from utility-scale solar
14        projects; at least 3% from brownfield site
15        photovoltaic projects that are not community renewable
16        generation projects. The Agency may propose
17        adjustments to these percentages, including
18        establishing percentage-based goals for the
19        procurement of renewable energy credits from retooled
20        hydropower facilities and repowered wind projects
21        through its long-term renewable resources plan
22        described in subparagraph (A) of this paragraph (1),
23        as necessary, based on developer interest, market
24        conditions, budget considerations, and other material
25        factors.
26            In developing the long-term renewable resources

 

 

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1        procurement plan, the Agency shall consider other
2        approaches, in addition to competitive procurements,
3        that can be used to procure renewable energy credits
4        from brownfield site photovoltaic projects and thereby
5        help return blighted or contaminated land to
6        productive use while enhancing public health and the
7        well-being of Illinois residents, including those in
8        environmental justice communities, as defined using
9        existing methodologies and findings used by the Agency
10        and its Administrator in its Illinois Solar for All
11        Program. The Agency shall also consider other
12        approaches, in addition to competitive procurements,
13        to procure renewable energy credits from new and
14        existing hydropower facilities to support the
15        development and maintenance of these facilities. The
16        Agency shall explore options to convert existing dams
17        but shall not consider approaches to develop new dams
18        where they do not already exist. To encourage
19        continued operation of utility-scale wind projects,
20        the Agency shall consider and may propose other
21        approaches in addition to competitive procurements to
22        procure renewable energy credits from repowered wind
23        projects.
24            (ii) In any given delivery year, if forecasted
25        expenses are less than the maximum budget available
26        under subparagraph (E) of this paragraph (1), the

 

 

SB3957- 50 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 51 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 52 -LRB103 40954 SPS 74001 b

1    regional technology costs and expected current and future
2    regional energy prices. Prior to a procurement, the Agency
3    shall ensure that the procurement administrator considers
4    comments from potential bidders regarding inputs,
5    structure, and methodology of the benchmark for the
6    procurement, including costs and risks of development,
7    construction, financing, or other categories as determined
8    by the Agency. In the request for comments on the
9    benchmark, the procurement administrator shall provide all
10    potential bidders with sufficient information about the
11    structure, methodology, and inputs for previous benchmarks
12    to allow for informed comment. The benchmarks in this
13    Section shall not be used to curtail or otherwise reduce
14    contractual obligations entered into by or through the
15    Agency prior to June 1, 2017 (the effective date of Public
16    Act 99-906).
17        (E) For purposes of this subsection (c), the required
18    procurement of cost-effective renewable energy resources
19    for a particular year commencing prior to June 1, 2017
20    shall be measured as a percentage of the actual amount of
21    electricity (megawatt-hours) supplied by the electric
22    utility to eligible retail customers in the delivery year
23    ending immediately prior to the procurement, and, for
24    delivery years commencing on and after June 1, 2017, the
25    required procurement of cost-effective renewable energy
26    resources for a particular year shall be measured as a

 

 

SB3957- 53 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 54 -LRB103 40954 SPS 74001 b

1    or applicable portion of such amount as specified in
2    paragraph (1) of this subsection (c), as applicable, by
3    the electric utility in the delivery year immediately
4    prior to the procurement to all retail customers in its
5    service territory. The calculations required by this
6    subparagraph (E) shall be made only once for each delivery
7    year at the time that the renewable energy resources are
8    procured. Once the determination as to the amount of
9    renewable energy resources to procure is made based on the
10    calculations set forth in this subparagraph (E) and the
11    contracts procuring those amounts are executed, no
12    subsequent rate impact determinations shall be made and no
13    adjustments to those contract amounts shall be allowed.
14    All costs incurred under such contracts shall be fully
15    recoverable by the electric utility as provided in this
16    Section. If the limitation on the amount of renewable
17    energy resources procured in this subparagraph (E) would
18    prevent the Agency from meeting the obligations of
19    existing contracts, then the Agency shall use additional
20    funds collected under subsection (k) of Section 16-108 of
21    the Public Utilities Act if so authorized by the
22    Commission in approving the Agency's long-term renewable
23    resources procurement plan. If the Agency notifies the
24    Commission that its existing contractual obligations are
25    reasonably expected to exceed the maximum collection
26    authorized under this subparagraph (E), then the Agency

 

 

SB3957- 55 -LRB103 40954 SPS 74001 b

1    shall suspend or reduce new procurements until a new rate
2    impact determination is made pursuant to this subparagraph
3    (E). The utilities shall be entitled to recover the total
4    cost associated with procuring renewable energy credits
5    required by this Section regardless of whether the costs
6    are subject to the limitations described in this
7    subparagraph (E) through the automatic adjustment clause
8    tariff under subsection (k) of Section 16-108 of the
9    Public Utilities Act.
10        (F) If the limitation on the amount of renewable
11    energy resources procured in subparagraph (E) of this
12    paragraph (1) prevents the Agency from meeting all of the
13    goals in this subsection (c), the Agency's long-term plan
14    shall prioritize compliance with the requirements of this
15    subsection (c) regarding renewable energy credits in the
16    following order:
17            (i) renewable energy credits under existing
18        contractual obligations as of June 1, 2021;
19            (i-5) funding for the Illinois Solar for All
20        Program, as described in subparagraph (O) of this
21        paragraph (1);
22            (ii) renewable energy credits necessary to comply
23        with the new wind and new photovoltaic procurement
24        requirements described in items (i) through (iii) of
25        subparagraph (C) of this paragraph (1); and
26            (iii) renewable energy credits necessary to meet

 

 

SB3957- 56 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 57 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 58 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 59 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 60 -LRB103 40954 SPS 74001 b

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

 

 

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

 

 

SB3957- 62 -LRB103 40954 SPS 74001 b

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

 

 

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1                Renewable Resources Procurement Plan, with 70%
2                of capacity allocated to projects on the Group
3                B waitlist and 30% of capacity allocated to
4                projects on the Group A waitlist.
5                    (B) Contract awards for waitlisted
6                projects shall be allocated proportionate to
7                the total nameplate capacity amount across
8                both ordinal waitlists associated with that
9                applicant firm or its affiliates, subject to
10                the following conditions.
11                        (i) Each applicant firm having a
12                    waitlisted project eligible for selection
13                    shall receive no less than 500 kilowatts
14                    in awarded capacity across all groups, and
15                    no approved vendor may receive more than
16                    20% of each Group's waitlist allocation.
17                        (ii) Each applicant firm, upon
18                    receiving an award of program capacity
19                    proportionate to its waitlisted capacity,
20                    may then determine which waitlisted
21                    projects it chooses to be selected for a
22                    contract award up to that capacity amount.
23                        (iii) Assuming all other program
24                    requirements are met, applicant firms may
25                    adjust the nameplate capacity of applicant
26                    projects without losing waitlist

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3957- 68 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 69 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 70 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 71 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 72 -LRB103 40954 SPS 74001 b

1            as appropriate.
2                (4) To ensure that indexed renewable energy
3            credit prices remain predictable and affordable,
4            the Agency may consider the institution of a price
5            collar on REC prices paid under indexed renewable
6            energy credit procurements establishing floor and
7            ceiling REC prices applicable to indexed REC
8            contract prices. Any price collars applicable to
9            indexed REC procurements shall be proposed by the
10            Agency through its long-term renewable resources
11            procurement plan.
12            (vi) All procurements under this subparagraph (G),
13        including the procurement of renewable energy credits
14        from hydropower facilities, shall comply with the
15        geographic requirements in subparagraph (I) of this
16        paragraph (1) and shall follow the procurement
17        processes and procedures described in this Section and
18        Section 16-111.5 of the Public Utilities Act to the
19        extent practicable, and these processes and procedures
20        may be expedited to accommodate the schedule
21        established by this subparagraph (G). To ensure the
22        successful development of new utility-scale solar
23        projects and new utility-scale wind projects for
24        procurements under items (i), (ii), (iii), and (v) of
25        this subparagraph (G), a winning bidder or the current
26        seller under contract countersigned by an electric

 

 

SB3957- 73 -LRB103 40954 SPS 74001 b

1        utility counterparty may petition the Commission to
2        revise the terms in the contract. Prior to such
3        petition, upon request by the winning bidder or
4        seller, the Agency shall negotiate directly with the
5        winning bidder or seller. If following the direct
6        negotiations, the Agency and the winning bidder reach
7        an agreement on amended terms or strike price and the
8        Agency finds that the amended terms or strike price
9        reflect a change in circumstances since the date of
10        the bid based on circumstances unforeseeable at the
11        time of the bid, upon petition by the winning bidder or
12        current seller, the Commission shall issue an order
13        directing the utility counterparty to execute a form
14        amendment drafted by the Agency with the revised terms
15        or the new strike price. The Agency shall provide the
16        amendment to the utility within 15 business days after
17        the Commission's order and the utility buyer shall
18        execute the amendment not more than 7 calendar days
19        after delivery by the Agency. The Agency shall develop
20        the form amendment following comment by interested
21        parties.
22            (vii) On and after the effective date of this
23        amendatory Act of the 103rd General Assembly, for all
24        procurements of renewable energy credits from
25        hydropower facilities, the Agency shall establish
26        contract terms designed to optimize existing

 

 

SB3957- 74 -LRB103 40954 SPS 74001 b

1        hydropower facilities through modernization or
2        retooling and establish new hydropower facilities at
3        existing dams. Procurements made under this item (vii)
4        shall prioritize projects located in designated
5        environmental justice communities, as defined in
6        subsection (b) of Section 1-56 of this Act, or in
7        projects located in units of local government with
8        median incomes that do not exceed 82% of the median
9        income of the State.
10        (H) The procurement of renewable energy resources for
11    a given delivery year shall be reduced as described in
12    this subparagraph (H) if an alternative retail electric
13    supplier meets the requirements described in this
14    subparagraph (H).
15            (i) Within 45 days after June 1, 2017 (the
16        effective date of Public Act 99-906), an alternative
17        retail electric supplier or its successor shall submit
18        an informational filing to the Illinois Commerce
19        Commission certifying that, as of December 31, 2015,
20        the alternative retail electric supplier owned one or
21        more electric generating facilities that generates
22        renewable energy resources as defined in Section 1-10
23        of this Act, provided that such facilities are not
24        powered by wind or photovoltaics, and the facilities
25        generate one renewable energy credit for each megawatt
26        hour megawatthour of energy produced from the

 

 

SB3957- 75 -LRB103 40954 SPS 74001 b

1        facility.
2            The informational filing shall identify each
3        facility that was eligible to satisfy the alternative
4        retail electric supplier's obligations under Section
5        16-115D of the Public Utilities Act as described in
6        this item (i).
7            (ii) For a given delivery year, the alternative
8        retail electric supplier may elect to supply its
9        retail customers with renewable energy credits from
10        the facility or facilities described in item (i) of
11        this subparagraph (H) that continue to be owned by the
12        alternative retail electric supplier.
13            (iii) The alternative retail electric supplier
14        shall notify the Agency and the applicable utility, no
15        later than February 28 of the year preceding the
16        applicable delivery year or 15 days after June 1, 2017
17        (the effective date of Public Act 99-906), whichever
18        is later, of its election under item (ii) of this
19        subparagraph (H) to supply renewable energy credits to
20        retail customers of the utility. Such election shall
21        identify the amount of renewable energy credits to be
22        supplied by the alternative retail electric supplier
23        to the utility's retail customers and the source of
24        the renewable energy credits identified in the
25        informational filing as described in item (i) of this
26        subparagraph (H), subject to the following

 

 

SB3957- 76 -LRB103 40954 SPS 74001 b

1        limitations:
2                For the delivery year beginning June 1, 2018,
3            the maximum amount of renewable energy credits to
4            be supplied by an alternative retail electric
5            supplier under this subparagraph (H) shall be 68%
6            multiplied by 25% multiplied by 14.5% multiplied
7            by the amount of metered electricity
8            (megawatt-hours) delivered by the alternative
9            retail electric supplier to Illinois retail
10            customers during the delivery year ending May 31,
11            2016.
12                For delivery years beginning June 1, 2019 and
13            each year thereafter, the maximum amount of
14            renewable energy credits to be supplied by an
15            alternative retail electric supplier under this
16            subparagraph (H) shall be 68% multiplied by 50%
17            multiplied by 16% multiplied by the amount of
18            metered electricity (megawatt-hours) delivered by
19            the alternative retail electric supplier to
20            Illinois retail customers during the delivery year
21            ending May 31, 2016, provided that the 16% value
22            shall increase by 1.5% each delivery year
23            thereafter to 25% by the delivery year beginning
24            June 1, 2025, and thereafter the 25% value shall
25            apply to each delivery year.
26            For each delivery year, the total amount of

 

 

SB3957- 77 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 78 -LRB103 40954 SPS 74001 b

1        provided that the 14.5% shall increase by 1.5% each
2        delivery year thereafter to 25% by the delivery year
3        beginning June 1, 2025, and thereafter the 25% value
4        shall apply to each delivery year.
5            On or before April 1 of each year, the Agency shall
6        annually publish a report on its website that
7        identifies the aggregate amount of renewable energy
8        credits supplied by alternative retail electric
9        suppliers under this subparagraph (H).
10        (I) The Agency shall design its long-term renewable
11    energy procurement plan to maximize the State's interest
12    in the health, safety, and welfare of its residents,
13    including but not limited to minimizing sulfur dioxide,
14    nitrogen oxide, particulate matter and other pollution
15    that adversely affects public health in this State,
16    increasing fuel and resource diversity in this State,
17    enhancing the reliability and resiliency of the
18    electricity distribution system in this State, meeting
19    goals to limit carbon dioxide emissions under federal or
20    State law, and contributing to a cleaner and healthier
21    environment for the citizens of this State. In order to
22    further these legislative purposes, renewable energy
23    credits shall be eligible to be counted toward the
24    renewable energy requirements of this subsection (c) if
25    they are generated from facilities located in this State.
26    The Agency may qualify renewable energy credits from

 

 

SB3957- 79 -LRB103 40954 SPS 74001 b

1    facilities located in states adjacent to Illinois or
2    renewable energy credits associated with the electricity
3    generated by a utility-scale wind energy facility or
4    utility-scale photovoltaic facility and transmitted by a
5    qualifying direct current project described in subsection
6    (b-5) of Section 8-406 of the Public Utilities Act to a
7    delivery point on the electric transmission grid located
8    in this State or a state adjacent to Illinois, if the
9    generator demonstrates and the Agency determines that the
10    operation of such facility or facilities will help promote
11    the State's interest in the health, safety, and welfare of
12    its residents based on the public interest criteria
13    described above. For the purposes of this Section,
14    renewable resources that are delivered via a high voltage
15    direct current converter station located in Illinois shall
16    be deemed generated in Illinois at the time and location
17    the energy is converted to alternating current by the high
18    voltage direct current converter station if the high
19    voltage direct current transmission line: (i) after the
20    effective date of this amendatory Act of the 102nd General
21    Assembly, was constructed with a project labor agreement;
22    (ii) is capable of transmitting electricity at 525kv;
23    (iii) has an Illinois converter station located and
24    interconnected in the region of the PJM Interconnection,
25    LLC; (iv) does not operate as a public utility; and (v) if
26    the high voltage direct current transmission line was

 

 

SB3957- 80 -LRB103 40954 SPS 74001 b

1    energized after June 1, 2023. To ensure that the public
2    interest criteria are applied to the procurement and given
3    full effect, the Agency's long-term procurement plan shall
4    describe in detail how each public interest factor shall
5    be considered and weighted for facilities located in
6    states adjacent to Illinois.
7        (J) In order to promote the competitive development of
8    renewable energy resources in furtherance of the State's
9    interest in the health, safety, and welfare of its
10    residents, renewable energy credits shall not be eligible
11    to be counted toward the renewable energy requirements of
12    this subsection (c) if they are sourced from a generating
13    unit whose costs were being recovered through rates
14    regulated by this State or any other state or states on or
15    after January 1, 2017. Each contract executed to purchase
16    renewable energy credits under this subsection (c) shall
17    provide for the contract's termination if the costs of the
18    generating unit supplying the renewable energy credits
19    subsequently begin to be recovered through rates regulated
20    by this State or any other state or states; and each
21    contract shall further provide that, in that event, the
22    supplier of the credits must return 110% of all payments
23    received under the contract. Amounts returned under the
24    requirements of this subparagraph (J) shall be retained by
25    the utility and all of these amounts shall be used for the
26    procurement of additional renewable energy credits from

 

 

SB3957- 81 -LRB103 40954 SPS 74001 b

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

 

 

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

 

 

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1    meet the goals in this subsection (c). The Agency shall
2    strive to issue a single block sized to provide for
3    stability and market growth. The Agency shall establish
4    program eligibility requirements that ensure that projects
5    that enter the program are sufficiently mature to indicate
6    a demonstrable path to completion. The Agency may
7    periodically review its prior decisions establishing the
8    amount of generation capacity in each block, and the
9    purchase price for each block, and may propose, on an
10    expedited basis, changes to these previously set values,
11    including but not limited to redistributing these amounts
12    and the available funds as necessary and appropriate,
13    subject to Commission approval as part of the periodic
14    plan revision process described in Section 16-111.5 of the
15    Public Utilities Act. The Agency may define different
16    block sizes, purchase prices, or other distinct terms and
17    conditions for projects located in different utility
18    service territories if the Agency deems it necessary to
19    meet the goals in this subsection (c).
20        The Adjustable Block program shall include the
21    following categories in at least the following amounts:
22            (i) At least 20% from distributed renewable energy
23        generation devices with a nameplate capacity of no
24        more than 25 kilowatts.
25            (ii) At least 20% from distributed renewable
26        energy generation devices with a nameplate capacity of

 

 

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1        more than 25 kilowatts and no more than 5,000
2        kilowatts. The Agency may create sub-categories within
3        this category to account for the differences between
4        projects for small commercial customers, large
5        commercial customers, and public or non-profit
6        customers.
7            (iii) At least 30% from photovoltaic community
8        renewable generation projects. Capacity for this
9        category for the first 2 delivery years after the
10        effective date of this amendatory Act of the 102nd
11        General Assembly shall be allocated to waitlist
12        projects as provided in paragraph (3) of item (iv) of
13        subparagraph (G). Starting in the third delivery year
14        after the effective date of this amendatory Act of the
15        102nd General Assembly or earlier if the Agency
16        determines there is additional capacity needed for to
17        meet previous delivery year requirements, the
18        following shall apply:
19                (1) to advance the interests of all ratepayers
20            in timely development of community renewable
21            generation projects powered by solar photovoltaics
22            procured under this Act, the Agency shall select
23            projects on a first-come, first-serve basis,
24            however the Agency shall, for applications on or
25            after the effective date of this amendatory Act of
26            the 103rd General Assembly, may suggest additional

 

 

SB3957- 85 -LRB103 40954 SPS 74001 b

1            methods to prioritize projects according to this
2            item (1). Prioritization methods shall be clear
3            and changes to those methods shall not hinder the
4            steady, predictable, and sustainable growth of
5            projects under this subsection. The Agency shall
6            ensure any project characteristics incentivized by
7            the prioritization method are aligned with the
8            findings of this Act and the price of the
9            associated renewable energy credit adequately
10            compensates the additional costs that may be
11            imposed on a project that are submitted at the
12            same time;
13                (1.5) all projects submitted under this
14            category shall, as part of the initial
15            application, be required to provide, in a form
16            directed by the Agency, proof of site control,
17            land use permits, if necessary, and a signed
18            interconnection agreement;
19                (2) projects shall have subscriptions of 25 kW
20            or less for at least 50% of the facility's
21            nameplate capacity and the Agency shall price the
22            renewable energy credits with that as a factor;
23                (3) projects shall not be colocated with one
24            or more other community renewable generation
25            projects, as defined in the Agency's first revised
26            long-term renewable resources procurement plan

 

 

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1            approved by the Commission on February 18, 2020,
2            such that the aggregate nameplate capacity exceeds
3            5,000 kilowatts; and
4                (4) projects greater than 2 MW may not apply
5            until after the approval of the Agency's revised
6            Long-Term Renewable Resources Procurement Plan
7            after the effective date of this amendatory Act of
8            the 102nd General Assembly.
9            (iv) At least 15% from distributed renewable
10        generation devices or photovoltaic community renewable
11        generation projects installed or on land adjacent to
12        public school land. For the purposes of this item
13        (iv), qualifying projects shall be located on property
14        owned, leased, or subleased by the school or school
15        district or on property owned, leased, or subleased by
16        the school or school district located adjacent to
17        property owned by the school. The Agency may create
18        subcategories within this category to account for the
19        differences between project size or location. Projects
20        located within environmental justice communities or
21        within Organizational Units that fall within Tier 1 or
22        Tier 2 shall be given priority. Each of the Agency's
23        periodic updates to its long-term renewable resources
24        procurement plan to incorporate the procurement
25        described in this subparagraph (iv) shall also include
26        the proposed quantities or blocks, pricing, and

 

 

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

 

 

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

 

 

SB3957- 89 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 90 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 91 -LRB103 40954 SPS 74001 b

1        and to that facility; and members of that community
2        benefit from regular use of that facility.
3            Terms and guidance within these criteria that are
4        not defined in this item (v) shall be defined by the
5        Agency, with stakeholder input, during the development
6        of the Agency's long-term renewable resources
7        procurement plan. The Agency shall develop regular
8        opportunities for projects to submit applications for
9        projects under this category, and develop selection
10        criteria that gives preference to projects that better
11        meet individual criteria as well as projects that
12        address a higher number of criteria.
13            (vi) At least 10% from distributed renewable
14        energy generation devices, which includes distributed
15        renewable energy devices with a nameplate capacity
16        under 5,000 kilowatts or photovoltaic community
17        renewable generation projects, from applicants that
18        are both approved vendors and equity eligible
19        contractors. The Agency shall not limit or impair
20        assignment of the contract to sell renewable energy
21        credits authorized by subparagraph (L) to another
22        approved vendor, except to the extent that in exchange
23        for price adders or other beneficial terms and
24        conditions, the applicant agrees to only assign to an
25        approved vendor that is, at the time of assignment, an
26        equity eligible contractor. The Agency may create

 

 

SB3957- 92 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 93 -LRB103 40954 SPS 74001 b

1        prior to a project's energization shall feature
2        provisions to ensure both the successful development
3        of applicant projects and the delivery of the
4        renewable energy credits for the full term of the
5        contract, including ongoing collateral requirements
6        and other provisions deemed necessary by the Agency,
7        and may include energization timelines longer than for
8        comparable project types. The percentage or amount of
9        capital advanced prior to project energization shall
10        not operate to increase the overall contract value,
11        however contracts executed under this subparagraph may
12        feature renewable energy credit prices higher than
13        those offered to similar projects participating in
14        other categories. Capital advanced prior to
15        energization shall serve to reduce the ratable
16        payments made after energization under items (ii) and
17        (iii) of subparagraph (L) or payments made for each
18        renewable energy credit delivery under item (iv) of
19        subparagraph (L).
20            (vii) The remaining capacity shall be allocated by
21        the Agency in order to respond to market demand. The
22        Agency shall allocate any discretionary capacity prior
23        to the beginning of each delivery year.
24        (viii) Notwithstanding the preceding, not more than 90
25    days after the effective date of this amendatory Act of
26    the 103rd General Assembly, the Agency shall petition the

 

 

SB3957- 94 -LRB103 40954 SPS 74001 b

1    Commission to modify its Long-Term Renewable Resources
2    Procurement Plan as follows:
3                (1) the petition shall include an estimate of
4            the size of blocks authorized under subparagraph
5            (i) of this paragraph (K) through the delivery
6            year beginning in 2030;
7                (2) the petition shall propose that such
8            capacity be made available on a continuous basis,
9            subject to inter-block price reductions proposed
10            by the Agency; and
11                (3) the petition shall propose a methodology
12            for reallocated capacity under the terms of the
13            Agency's Long-Term Renewable Resources Procurement
14            Plan.
15            The Commission shall approve the Agency's petition
16        within 120 days after receiving the petition, with any
17        modifications that the Commission finds are necessary
18        to deploy distributed renewable energy generation
19        devices to meet customer demand and enable the
20        photovoltaic market to scale up and for renewable
21        energy credit prices to adjust at a predictable rate
22        over time.
23        To the extent there is uncontracted capacity from any
24    block in any of categories (i) through (vi) at the end of a
25    delivery year, the Agency shall redistribute that capacity
26    to one or more other categories giving priority to

 

 

SB3957- 95 -LRB103 40954 SPS 74001 b

1    categories with projects on a waitlist. The redistributed
2    capacity shall be added to the annual capacity in the
3    subsequent delivery year, and the price for renewable
4    energy credits shall be the price for the new delivery
5    year. Redistributed capacity shall not be considered
6    redistributed when determining whether the goals in this
7    subsection (K) have been met.
8        Notwithstanding anything to the contrary, as the
9    Agency increases the capacity in item (vi) to 40% over
10    time, the Agency may reduce the capacity of items (i)
11    through (v) proportionate to the capacity of the
12    categories of projects in item (vi), to achieve a balance
13    of project types.
14        The Adjustable Block program shall be designed to
15    ensure that renewable energy credits are procured from
16    projects in diverse locations and are not concentrated in
17    a few regional areas.
18        (L) Notwithstanding provisions for advancing capital
19    prior to project energization found in item (vi) of
20    subparagraph (K), the procurement of photovoltaic
21    renewable energy credits under items (i) through (vi) of
22    subparagraph (K) of this paragraph (1) shall otherwise be
23    subject to the following contract and payment terms:
24            (i) (Blank).
25            (i-3) Upon delivery of evidence of an increase of
26        over 100% of non-binding cost estimates for

 

 

SB3957- 96 -LRB103 40954 SPS 74001 b

1        interconnection from a study or interconnection
2        agreement issued prior to application of a system to
3        the program described in subparagraph (K) of this
4        paragraph (1) to a study or interconnection agreement
5        issued after such application, the approved vendor
6        submitting such application shall be entitled to
7        return of 100% of any performance assurance posted for
8        such system under a contract described in this
9        subparagraph (L).
10            (i-5) The Agency or its program administrator
11        shall complete the review of the materials as the
12        Agency may require to be submitted to trigger the
13        initial payment for a participating system under the
14        renewable energy credit contract no later than 6 weeks
15        after the completed submission.
16            (ii) For those renewable energy credits that
17        qualify and are procured under item (i) of
18        subparagraph (K) of this paragraph (1), and any
19        similar category projects that are procured under item
20        (vi) of subparagraph (K) of this paragraph (1) that
21        qualify and are procured under item (vi), the contract
22        length shall be 15 years. The renewable energy credit
23        delivery contract value shall be paid in full, based
24        on the estimated generation during the first 15 years
25        of operation, by the contracting utilities at the time
26        that the facility producing the renewable energy

 

 

SB3957- 97 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 98 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 99 -LRB103 40954 SPS 74001 b

1        during the first 20 years of operation and retire all
2        renewable energy credits paid for under this item (iv)
3        and return at the end of the delivery term all
4        renewable energy credits that were not paid for.
5        Renewable energy credits generated by the project
6        thereafter shall not be transferred under the
7        renewable energy credit delivery contract with the
8        counterparty electric utility. Notwithstanding the
9        preceding, for those projects participating under item
10        (iii) of subparagraph (K), the contract price for a
11        delivery year shall be based on subscription levels as
12        measured on the higher of the first business day of the
13        delivery year or the first business day 6 months after
14        the first business day of the delivery year.
15        Subscription of 90% of nameplate capacity or greater
16        shall be deemed to be fully subscribed for the
17        purposes of this item (iv). For projects receiving a
18        20-year delivery contract, REC prices shall be
19        adjusted downward for consistency with the incentive
20        levels previously determined to be necessary to
21        support projects under 15-year delivery contracts,
22        taking into consideration any additional new
23        requirements placed on the projects, including, but
24        not limited to, labor standards.
25            (v) Each contract shall include provisions to
26        ensure the delivery of the estimated quantity of

 

 

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1        renewable energy credits and ongoing collateral
2        requirements and other provisions deemed appropriate
3        by the Agency.
4            (vi) The utility shall be the counterparty to the
5        contracts executed under this subparagraph (L) that
6        are approved by the Commission under the process
7        described in Section 16-111.5 of the Public Utilities
8        Act. No contract shall be executed for an amount that
9        is less than one renewable energy credit per year.
10            (vii) If, at any time, approved applications for
11        the Adjustable Block program exceed funds collected by
12        the electric utility or would cause the Agency to
13        exceed the limitation described in subparagraph (E) of
14        this paragraph (1) on the amount of renewable energy
15        resources that may be procured, then the Agency may
16        consider future uncommitted funds to be reserved for
17        these contracts on a first-come, first-served basis.
18            (viii) Nothing in this Section shall require the
19        utility to advance any payment or pay any amounts that
20        exceed the actual amount of revenues anticipated to be
21        collected by the utility under paragraph (6) of this
22        subsection (c) and subsection (k) of Section 16-108 of
23        the Public Utilities Act inclusive of eligible funds
24        collected in prior years and alternative compliance
25        payments for use by the utility, and contracts
26        executed under this Section shall expressly

 

 

SB3957- 101 -LRB103 40954 SPS 74001 b

1        incorporate this limitation.
2            (ix) Notwithstanding other requirements of this
3        subparagraph (L), no modification shall be required to
4        Adjustable Block program contracts if they were
5        already executed prior to the establishment, approval,
6        and implementation of new contract forms as a result
7        of this amendatory Act of the 102nd General Assembly.
8            (x) Contracts may be assignable, but only to
9        entities first deemed by the Agency to have met
10        program terms and requirements applicable to direct
11        program participation. In developing contracts for the
12        delivery of renewable energy credits, the Agency shall
13        be permitted to establish fees applicable to each
14        contract assignment.
15        (M) The Agency shall be authorized to retain one or
16    more experts or expert consulting firms to develop,
17    administer, implement, operate, and evaluate the
18    Adjustable Block program described in subparagraph (K) of
19    this paragraph (1), and the Agency shall retain the
20    consultant or consultants in the same manner, to the
21    extent practicable, as the Agency retains others to
22    administer provisions of this Act, including, but not
23    limited to, the procurement administrator. The selection
24    of experts and expert consulting firms and the procurement
25    process described in this subparagraph (M) are exempt from
26    the requirements of Section 20-10 of the Illinois

 

 

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1    Procurement Code, under Section 20-10 of that Code. The
2    Agency shall strive to minimize administrative expenses in
3    the implementation of the Adjustable Block program.
4        The Program Administrator may charge application fees
5    to participating firms to cover the cost of program
6    administration. Any application fee amounts shall
7    initially be determined through the long-term renewable
8    resources procurement plan, and modifications to any
9    application fee that deviate more than 25% from the
10    Commission's approved value must be approved by the
11    Commission as a long-term plan revision under Section
12    16-111.5 of the Public Utilities Act. The Agency shall
13    consider stakeholder feedback when making adjustments to
14    application fees and shall notify stakeholders in advance
15    of any planned changes.
16        In addition to covering the costs of program
17    administration, the Agency, in conjunction with its
18    Program Administrator, may also use the proceeds of such
19    fees charged to participating firms to support public
20    education and ongoing regional and national coordination
21    with nonprofit organizations, public bodies, and others
22    engaged in the implementation of renewable energy
23    incentive programs or similar initiatives. This work may
24    include developing papers and reports, hosting regional
25    and national conferences, and other work deemed necessary
26    by the Agency to position the State of Illinois as a

 

 

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1    national leader in renewable energy incentive program
2    development and administration.
3        The Agency and its consultant or consultants shall
4    monitor block activity, share program activity with
5    stakeholders and conduct quarterly meetings to discuss
6    program activity and market conditions. If necessary, the
7    Agency may make prospective administrative adjustments to
8    the Adjustable Block program design, such as making
9    adjustments to purchase prices as necessary to achieve the
10    goals of this subsection (c). Program modifications to any
11    block price that do not deviate from the Commission's
12    approved value by more than 10% shall take effect
13    immediately and are not subject to Commission review and
14    approval. Program modifications to any block price that
15    deviate more than 10% from the Commission's approved value
16    must be approved by the Commission as a long-term plan
17    amendment under Section 16-111.5 of the Public Utilities
18    Act. The Agency shall consider stakeholder feedback when
19    making adjustments to the Adjustable Block design and
20    shall notify stakeholders in advance of any planned
21    changes.
22        The Agency and its program administrators for both the
23    Adjustable Block program and the Illinois Solar for All
24    Program, consistent with the requirements of this
25    subsection (c) and subsection (b) of Section 1-56 of this
26    Act, shall propose the Adjustable Block program terms,

 

 

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1    conditions, and requirements, including the prices to be
2    paid for renewable energy credits, where applicable, and
3    requirements applicable to participating entities and
4    project applications, through the development, review, and
5    approval of the Agency's long-term renewable resources
6    procurement plan described in this subsection (c) and
7    paragraph (5) of subsection (b) of Section 16-111.5 of the
8    Public Utilities Act. Terms, conditions, and requirements
9    for program participation shall include the following:
10            (i) The Agency shall establish a registration
11        process for entities seeking to qualify for
12        program-administered incentive funding and establish
13        baseline qualifications for vendor approval. The
14        Agency must maintain a list of approved entities on
15        each program's website, and may revoke a vendor's
16        ability to receive program-administered incentive
17        funding status upon a determination that the vendor
18        failed to comply with contract terms, the law, or
19        other program requirements.
20            (ii) The Agency shall establish program
21        requirements and minimum contract terms to ensure
22        projects are properly installed and produce their
23        expected amounts of energy. Program requirements may
24        include on-site inspections and photo documentation of
25        projects under construction. The Agency may require
26        repairs, alterations, or additions to remedy any

 

 

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1        material deficiencies discovered. Vendors who have a
2        disproportionately high number of deficient systems
3        may lose their eligibility to continue to receive
4        State-administered incentive funding through Agency
5        programs and procurements.
6            (iii) To discourage deceptive marketing or other
7        bad faith business practices, the Agency may require
8        direct program participants, including agents
9        operating on their behalf, to provide standardized
10        disclosures to a customer prior to that customer's
11        execution of a contract for the development of a
12        distributed generation system or a subscription to a
13        community solar project.
14            (iv) The Agency shall establish one or multiple
15        Consumer Complaints Centers to accept complaints
16        regarding businesses that participate in, or otherwise
17        benefit from, State-administered incentive funding
18        through Agency-administered programs. The Agency shall
19        maintain a public database of complaints with any
20        confidential or particularly sensitive information
21        redacted from public entries.
22            (v) Through a filing in the proceeding for the
23        approval of its long-term renewable energy resources
24        procurement plan, the Agency shall provide an annual
25        written report to the Illinois Commerce Commission
26        documenting the frequency and nature of complaints and

 

 

SB3957- 106 -LRB103 40954 SPS 74001 b

1        any enforcement actions taken in response to those
2        complaints.
3            (vi) The Agency shall schedule regular meetings
4        with representatives of the Office of the Attorney
5        General, the Illinois Commerce Commission, consumer
6        protection groups, and other interested stakeholders
7        to share relevant information about consumer
8        protection, project compliance, and complaints
9        received.
10            (vii) To the extent that complaints received
11        implicate the jurisdiction of the Office of the
12        Attorney General, the Illinois Commerce Commission, or
13        local, State, or federal law enforcement, the Agency
14        shall also refer complaints to those entities as
15        appropriate.
16        (N) The Agency shall establish the terms, conditions,
17    and program requirements for photovoltaic community
18    renewable generation projects with a goal to expand access
19    to a broader group of energy consumers, to ensure robust
20    participation opportunities for residential and small
21    commercial customers and those who cannot install
22    renewable energy on their own properties. Subject to
23    reasonable limitations, any plan approved by the
24    Commission shall allow subscriptions to community
25    renewable generation projects to be portable and
26    transferable. For purposes of this subparagraph (N),

 

 

SB3957- 107 -LRB103 40954 SPS 74001 b

1    "portable" means that subscriptions may be retained by the
2    subscriber even if the subscriber relocates or changes its
3    address within the same utility service territory; and
4    "transferable" means that a subscriber may assign or sell
5    subscriptions to another person within the same utility
6    service territory.
7        Through the development of its long-term renewable
8    resources procurement plan, the Agency may consider
9    whether community renewable generation projects utilizing
10    technologies other than photovoltaics should be supported
11    through State-administered incentive funding, and may
12    issue requests for information to gauge market demand.
13        Electric utilities shall provide a monetary credit to
14    a subscriber's subsequent bill for service for the
15    proportional output of a community renewable generation
16    project attributable to that subscriber as specified in
17    Section 16-107.5 of the Public Utilities Act.
18        The Agency shall purchase renewable energy credits
19    from subscribed shares of photovoltaic community renewable
20    generation projects through the Adjustable Block program
21    described in subparagraph (K) of this paragraph (1) or
22    through the Illinois Solar for All Program described in
23    Section 1-56 of this Act. The electric utility shall
24    purchase any unsubscribed energy from community renewable
25    generation projects that are Qualifying Facilities ("QF")
26    under the electric utility's tariff for purchasing the

 

 

SB3957- 108 -LRB103 40954 SPS 74001 b

1    output from QFs under Public Utilities Regulatory Policies
2    Act of 1978.
3        The owners of and any subscribers to a community
4    renewable generation project shall not be considered
5    public utilities or alternative retail electricity
6    suppliers under the Public Utilities Act solely as a
7    result of their interest in or subscription to a community
8    renewable generation project and shall not be required to
9    become an alternative retail electric supplier by
10    participating in a community renewable generation project
11    with a public utility.
12        (O) For the delivery year beginning June 1, 2018, the
13    long-term renewable resources procurement plan required by
14    this subsection (c) shall provide for the Agency to
15    procure contracts to continue offering the Illinois Solar
16    for All Program described in subsection (b) of Section
17    1-56 of this Act, and the contracts approved by the
18    Commission shall be executed by the utilities that are
19    subject to this subsection (c). The long-term renewable
20    resources procurement plan shall allocate up to
21    $50,000,000 per delivery year to fund the programs, and
22    the plan shall determine the amount of funding to be
23    apportioned to the programs identified in subsection (b)
24    of Section 1-56 of this Act; provided that for the
25    delivery years beginning June 1, 2021, June 1, 2022, and
26    June 1, 2023, the long-term renewable resources

 

 

SB3957- 109 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 110 -LRB103 40954 SPS 74001 b

1    Reinvestment Act. If this requirement conflicts with other
2    provisions of law or the Agency determines that full
3    compliance with the requirements of this subparagraph (P)
4    would be unreasonably costly or administratively
5    impractical, the Agency is to propose alternative
6    approaches to achieve development of renewable energy
7    resources in communities eligible to receive Energy
8    Transition Community Grants pursuant to Section 10-20 of
9    the Energy Community Reinvestment Act or seek an exemption
10    from this requirement from the Commission.
11        (P-5) Notwithstanding any other provision of law, in
12    all competitive procurements conducted by the Agency after
13    the effective date of this amendatory Act of the 103rd
14    General Assembly for the procurement of redeveloper energy
15    storage capacity, the Agency, in ranking the bids for
16    evaluation and selection, shall apply a downward bid price
17    adjustment equivalent to the bid adjustment described in
18    Section 5.4.3 of its 2024 Long-Term Renewable Resources
19    Procurement Plan, as approved by the Illinois Commerce
20    Commission, to any bid submitted by a redeveloper in a
21    redeveloper energy storage capacity procurement for any
22    project that is located or proposed to be located at a site
23    connecting to existing electric utility infrastructure at
24    a switchyard in this State that is located within the
25    property boundaries or within a 2-mile radius of the
26    property boundaries of the redeveloper's fossil-fueled

 

 

SB3957- 111 -LRB103 40954 SPS 74001 b

1    generating plant site that was retired subsequent to
2    December 31, 2015 or that is an electric generating unit
3    or large greenhouse gas-emitting unit that is subject to
4    subsection (i) of Section 9.15 of the Environmental
5    Protection Act, and that (i) is located or proposed to be
6    located within 2 miles of an equity investment eligible
7    community, as defined by the Illinois Power Agency
8    pursuant to this Act, (ii) is located or proposed to be
9    located within an area that was identified by the Illinois
10    Power Agency as an Energy Transition Grant Area in
11    Appendix 16 of the Illinois Power Agency's final Fall 2023
12    Renewable Energy Credit Request for Proposal Documents,
13    dated September 29, 2023, or (iii) has submitted an
14    interconnection request with the applicable regional
15    transmission organization or independent transmission
16    system operator for the redeveloper's proposed energy
17    storage resource. If a proposed energy storage resource
18    for which a bid is submitted in a redeveloper energy
19    storage capacity procurement event described in this
20    paragraph meets 2 or more of the 3 enumerated criterion
21    set forth in the preceding sentence, the Agency shall
22    apply the bid price adjustment 2 times in ranking and
23    evaluating that bid submitted by the project. It is the
24    intent of the General Assembly in enacting this paragraph
25    to (i) provide a preference for projects located or to be
26    located in areas which the General Assembly hereby finds

 

 

SB3957- 112 -LRB103 40954 SPS 74001 b

1    and concludes have experienced or will experience adverse
2    economic and employment impacts due to a closure of a
3    fossil-fueled power plant, which closures the General
4    Assembly hereby finds have helped to advance the State's
5    decarbonization goals, and which bid adjustment will help
6    to provide a just transition for the areas in which closed
7    fossil-fueled power plants are located, (ii) provide a
8    preference for projects that are located in either an
9    environmental justice community or an R3 program
10    community, as those terms are defined or described in the
11    this Act, and (iii) provide a preference for projects that
12    have applied and entered into the interconnection queue
13    with the applicable regional transmission organization or
14    independent system operator and can therefore more quickly
15    meet commercial operation timelines and provide needed
16    resources and reliability to consumers.
17        (Q) Each facility listed in subitems (i) through (ix)
18    of item (1) of this subparagraph (Q) for which a renewable
19    energy credit delivery contract is signed after the
20    effective date of this amendatory Act of the 102nd General
21    Assembly is subject to the following requirements through
22    the Agency's long-term renewable resources procurement
23    plan:
24            (1) Each facility shall be subject to the
25        prevailing wage requirements included in the
26        Prevailing Wage Act. The Agency shall require

 

 

SB3957- 113 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 114 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 115 -LRB103 40954 SPS 74001 b

1        utility-scale wind projects, new utility-scale solar
2        projects, and new brownfield solar projects pursuant
3        to Agency procurement events occurring after the
4        effective date of this amendatory Act of the 102nd
5        General Assembly must be from facilities built by
6        general contractors that must enter into a project
7        labor agreement, as defined by this Act, prior to
8        construction. The project labor agreement shall be
9        filed with the Director in accordance with procedures
10        established by the Agency through its long-term
11        renewable resources procurement plan. Any information
12        submitted to the Agency in this item (2) shall be
13        considered commercially sensitive information. At a
14        minimum, the project labor agreement must provide the
15        names, addresses, and occupations of the owner of the
16        plant and the individuals representing the labor
17        organization employees participating in the project
18        labor agreement consistent with the Project Labor
19        Agreements Act. The agreement must also specify the
20        terms and conditions as defined by this Act.
21            (3) It is the intent of this Section to ensure that
22        economic development occurs across Illinois
23        communities, that emerging businesses may grow, and
24        that there is improved access to the clean energy
25        economy by persons who have greater economic burdens
26        to success. The Agency shall take into consideration

 

 

SB3957- 116 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 117 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 118 -LRB103 40954 SPS 74001 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3957- 125 -LRB103 40954 SPS 74001 b

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

 

 

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1    community renewable generation program shall provide
2    employment opportunities for all segments of the
3    population and workforce, including minority-owned and
4    female-owned business enterprises, and shall not,
5    consistent with State and federal law, discriminate based
6    on race or socioeconomic status.
7    (c-5) Procurement of renewable energy credits from new
8renewable energy facilities installed at or adjacent to the
9sites of electric generating facilities that burn or burned
10coal as their primary fuel source.
11        (1) In addition to the procurement of renewable energy
12    credits pursuant to long-term renewable resources
13    procurement plans in accordance with subsection (c) of
14    this Section and Section 16-111.5 of the Public Utilities
15    Act, the Agency shall conduct procurement events in
16    accordance with this subsection (c-5) for the procurement
17    by electric utilities that served more than 300,000 retail
18    customers in this State as of January 1, 2019 of renewable
19    energy credits from new renewable energy facilities to be
20    installed at or adjacent to the sites of electric
21    generating facilities that, as of January 1, 2016, burned
22    coal as their primary fuel source and meet the other
23    criteria specified in this subsection (c-5). For purposes
24    of this subsection (c-5), "new renewable energy facility"
25    means a new utility-scale solar project as defined in this
26    Section 1-75. The renewable energy credits procured

 

 

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

 

 

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

 

 

SB3957- 129 -LRB103 40954 SPS 74001 b

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

 

 

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

 

 

SB3957- 131 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 132 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 133 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 134 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 135 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 136 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 137 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 138 -LRB103 40954 SPS 74001 b

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

 

 

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

 

 

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1        this paragraph (10).
2            (C) The Department shall utilize up to
3        $280,500,000 in the Coal to Solar and Energy Storage
4        Initiative Fund for grants, assuming sufficient
5        qualifying applicants, to support installation of
6        energy storage facilities at the sites of up to 3
7        qualifying electric generating facilities located in
8        the Midcontinent Independent System Operator, Inc.,
9        region in Illinois and the sites of up to 2 qualifying
10        electric generating facilities located in the PJM
11        Interconnection, LLC region in Illinois that meet the
12        criteria set forth in this subparagraph (C). The
13        criteria for receipt of a grant pursuant to this
14        subparagraph (C) are as follows:
15                (1) the electric generating facility at the
16            site has, or had prior to retirement, an electric
17            generating capacity of at least 150 megawatts;
18                (2) the electric generating facility burns (or
19            burned prior to retirement) coal as its primary
20            source of fuel;
21                (3) if the electric generating facility is
22            retired, it was retired subsequent to January 1,
23            2016;
24                (4) the owner of the electric generating
25            facility has not been selected by the Agency
26            pursuant to this subsection (c-5) of this Section

 

 

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

 

 

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

 

 

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

 

 

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1        following the date the energy storage facility is
2        placed into commercial operation. The annual grant
3        payments to a qualifying energy storage facility shall
4        be $110,000 per megawatt of energy storage capacity,
5        with total annual grant payments pursuant to this
6        subparagraph (C) for qualifying energy storage
7        facilities not to exceed $28,050,000 in any year.
8            (D) Grants of funding for energy storage
9        facilities pursuant to subparagraph (C) of this
10        paragraph (10), from the Coal to Solar and Energy
11        Storage Initiative Fund, shall be memorialized in
12        grant contracts between the Department and the
13        recipient. The grant contracts shall specify the date
14        or dates in each year on which the annual grant
15        payments shall be paid.
16            (E) All disbursements from the Coal to Solar and
17        Energy Storage Initiative Fund shall be made only upon
18        warrants of the Comptroller drawn upon the Treasurer
19        as custodian of the Fund upon vouchers signed by the
20        Director of the Department or by the person or persons
21        designated by the Director of the Department for that
22        purpose. The Comptroller is authorized to draw the
23        warrants upon vouchers so signed. The Treasurer shall
24        accept all written warrants so signed and shall be
25        released from liability for all payments made on those
26        warrants.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3957- 149 -LRB103 40954 SPS 74001 b

1advancing equity across Illinois by providing access to the
2clean energy economy for businesses and workers from
3communities that have been historically excluded from economic
4opportunities in the energy sector, have been subject to
5disproportionate levels of pollution, and have
6disproportionately experienced negative public health
7outcomes.
8        (1) Minimum equity standards. The Agency shall create
9    programs with the purpose of increasing access to and
10    development of equity eligible contractors, who are prime
11    contractors and subcontractors, across all of the programs
12    it manages. All applications for renewable energy credit
13    procurements shall comply with specific minimum equity
14    commitments. Starting in the delivery year immediately
15    following the next long-term renewable resources
16    procurement plan, at least 10% of the project workforce
17    for each entity participating in a procurement program
18    outlined in this subsection (c-10) must be done by equity
19    eligible persons or equity eligible contractors. The
20    Agency shall increase the minimum percentage each delivery
21    year thereafter by increments that ensure a statewide
22    average of 30% of the project workforce for each entity
23    participating in a procurement program is done by equity
24    eligible persons or equity eligible contractors by 2030.
25    The Agency shall propose a schedule of percentage
26    increases to the minimum equity standards in its draft

 

 

SB3957- 150 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 151 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 152 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 153 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 154 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 155 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 156 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 157 -LRB103 40954 SPS 74001 b

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

 

 

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

 

 

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1    other things, measure any potential impact of racial
2    discrimination on the distribution of benefits and provide
3    information necessary to correct any discrimination
4    through methods consistent with State and federal law.
5        (2) Agency collection of program data. The Agency
6    shall collect demographic and geographic data for each
7    entity awarded contracts under any Agency-administered
8    program. The Agency shall collect this data on an annual
9    basis for all systems energized during the applicable
10    annual period, but shall allow entities awarded contracts
11    under any Agency-administered program to elect to report
12    data exclusively on a project-by-project basis.
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

 

 

SB3957- 163 -LRB103 40954 SPS 74001 b

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;

 

 

SB3957- 172 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 173 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 174 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 175 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 176 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 177 -LRB103 40954 SPS 74001 b

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:

 

 

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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 megawatt hour
16            megawatthour basis, over the next 6 delivery
17            years, which shall include the following:
18            operation and maintenance expenses; fully
19            allocated overhead costs, which shall be allocated
20            using the methodology developed by the Institute
21            for Nuclear Power Operations; fuel expenditures;
22            non-fuel capital expenditures; spent fuel
23            expenditures; a return on working capital; the
24            cost of operational and market risks that could be
25            avoided by ceasing operation; and any other costs
26            necessary for continued operations, provided that

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1                    June 1, 2020, and each year thereafter,
2                    the projected capacity price shall be
3                    equal to the sum of (1) 50% multiplied by
4                    the Base Residual Auction, or its
5                    successor, price for the ComEd zone as
6                    determined by PJM Interconnection LLC,
7                    divided by 24 hours per day, and (2) 50%
8                    multiplied by the resource auction price
9                    determined in the resource auction
10                    administered by the Midcontinent
11                    Independent System Operator, Inc., in
12                    which the largest percentage of load
13                    cleared for Local Resource Zone 4, divided
14                    by 24 hours per day, and where such price
15                    is determined by the Midcontinent
16                    Independent System Operator, Inc.
17            For purposes of this subsection (d-5):
18                "Rest of the RTO" and "ComEd Zone" shall have
19            the meaning ascribed to them by PJM
20            Interconnection, LLC.
21                "RTO" means regional transmission
22            organization.
23            (C) No later than 45 days after June 1, 2017 (the
24        effective date of Public Act 99-906), the Agency shall
25        publish its proposed zero emission standard
26        procurement plan. The plan shall be consistent with

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3957- 197 -LRB103 40954 SPS 74001 b

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

 

 

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1            such resource would not undertake.
2                (iv) A zero emission facility shall be
3            permitted to terminate the contract in the event
4            the Nuclear Regulatory Commission terminates the
5            resource's license.
6            (F) If the zero emission facility elects to
7        terminate a contract under subparagraph (E) of this
8        paragraph (1), then the Commission shall reopen the
9        docket in which the Commission approved the zero
10        emission standard procurement plan under subparagraph
11        (C) of this paragraph (1) and, after notice and
12        hearing, enter an order acknowledging the contract
13        termination election if such termination is consistent
14        with the provisions of this subsection (d-5).
15        (2) For purposes of this subsection (d-5), the amount
16    paid per kilowatthour means the total amount paid for
17    electric service expressed on a per kilowatthour basis.
18    For purposes of this subsection (d-5), the total amount
19    paid for electric service includes, without limitation,
20    amounts paid for supply, transmission, distribution,
21    surcharges, and add-on taxes.
22        Notwithstanding the requirements of this subsection
23    (d-5), the contracts executed under this subsection (d-5)
24    shall provide that the total of zero emission credits
25    procured under a procurement plan shall be subject to the
26    limitations of this paragraph (2). For each delivery year,

 

 

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

 

 

SB3957- 200 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 201 -LRB103 40954 SPS 74001 b

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

 

 

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1        (d-5).
2        If the subtraction yields a negative number, then the
3    Average ZEC Payment shall be zero.
4        (4) Cost-effective zero emission credits procured from
5    zero emission facilities shall satisfy the applicable
6    definitions set forth in Section 1-10 of this Act.
7        (5) The electric utility shall retire all zero
8    emission credits used to comply with the requirements of
9    this subsection (d-5).
10        (6) Electric utilities shall be entitled to recover
11    all of the costs associated with the procurement of zero
12    emission credits through an automatic adjustment clause
13    tariff in accordance with subsection (k) and (m) of
14    Section 16-108 of the Public Utilities Act, and the
15    contracts executed under this subsection (d-5) shall
16    provide that the utilities' payment obligations under such
17    contracts shall be reduced if an adjustment is required
18    under subsection (m) of Section 16-108 of the Public
19    Utilities Act.
20        (7) This subsection (d-5) shall become inoperative on
21    January 1, 2028.
22    (d-10) Nuclear Plant Assistance; carbon mitigation
23credits.
24    (1) The General Assembly finds:
25        (A) The health, welfare, and prosperity of all
26    Illinois citizens require that the State of Illinois act

 

 

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

 

 

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

 

 

SB3957- 205 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 206 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 207 -LRB103 40954 SPS 74001 b

1        subparagraph (E) of paragraph (1) of subsection (d-5)
2        of this Section or made impracticable as a result of
3        compliance with law or regulation;
4            (iv) financial need and the risk of loss of the
5        environmental benefits of such resource, which shall
6        include the following information:
7                (I) the carbon-free energy resource's cost
8            projections, expressed on a per megawatt-hour
9            basis, over the next 5 delivery years, which shall
10            include the following: operation and maintenance
11            expenses; fully allocated overhead costs, which
12            shall be allocated using the methodology developed
13            by the Institute for Nuclear Power Operations;
14            fuel expenditures; nonfuel capital expenditures;
15            spent fuel expenditures; a return on working
16            capital; the cost of operational and market risks
17            that could be avoided by ceasing operation; and
18            any other costs necessary for continued
19            operations, provided that "necessary" means, for
20            purposes of this subitem (I), that the costs could
21            reasonably be avoided only by ceasing operations
22            of the carbon-free energy resource; and
23                (II) the carbon-free energy resource's revenue
24            projections, including energy, capacity, ancillary
25            services, any other direct State support, known or
26            anticipated federal attribute credits, known or

 

 

SB3957- 208 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 209 -LRB103 40954 SPS 74001 b

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

 

 

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

 

 

SB3957- 211 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 212 -LRB103 40954 SPS 74001 b

1            to $33.43 per megawatt-hour.
2                (IV) For the delivery year beginning June 1,
3            2025, the baseline costs shall be an amount equal
4            to $33.50 per megawatt-hour.
5                (V) For the delivery year beginning June 1,
6            2026, the baseline costs shall be an amount equal
7            to $34.50 per megawatt-hour.
8            An Environmental Protection Agency consultant
9        forecast, included in a report issued April 14, 2021,
10        projects that a carbon-free energy resource has the
11        opportunity to earn on average approximately $30.28
12        per megawatt-hour, for the sale of energy and capacity
13        during the time period between 2022 and 2027.
14        Therefore, the sale of carbon mitigation credits
15        provides the opportunity to receive an additional
16        amount per megawatt-hour in addition to the projected
17        prices for energy and capacity.
18            Although actual energy and capacity prices may
19        vary from year-to-year, the General Assembly finds
20        that this customer protection cap will help ensure
21        that the cost of carbon mitigation credits will be
22        less than its value, based upon the social cost of
23        carbon identified in the Technical Support Document
24        issued in February 2021 by the U.S. Interagency
25        Working Group on Social Cost of Greenhouse Gases and
26        the PJM Interconnection, LLC carbon dioxide marginal

 

 

SB3957- 213 -LRB103 40954 SPS 74001 b

1        emission rate for 2020, and that a carbon-free energy
2        resource receiving payment for carbon mitigation
3        credits receives no more than necessary to keep those
4        units in operation.
5        (D) No later than 7 days after the effective date of
6    this amendatory Act of the 102nd General Assembly, the
7    Agency shall publish its proposed carbon mitigation credit
8    procurement plan. The Plan shall provide that winning bids
9    shall be selected by taking into consideration which
10    resources best match public interest criteria that
11    include, but are not limited to, minimizing carbon dioxide
12    emissions that result from electricity consumed in
13    Illinois and minimizing sulfur dioxide, nitrogen oxide,
14    and particulate matter emissions that adversely affect the
15    citizens of this State. The selection of winning bids
16    shall also take into account the incremental environmental
17    benefits resulting from the procurement or procurements,
18    such as any existing environmental benefits that are
19    preserved by a procurement held under this subsection
20    (d-10) and would cease to exist if the procurement were
21    not held, including the preservation of carbon-free energy
22    resources. For those bidders having the same public
23    interest criteria score, the relative ranking of such
24    bidders shall be determined by price. The Plan shall
25    describe in detail how each public interest factor shall
26    be considered and weighted in the bid selection process to

 

 

SB3957- 214 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 215 -LRB103 40954 SPS 74001 b

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

 

 

SB3957- 216 -LRB103 40954 SPS 74001 b

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

 

 

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1    the December 3, 2021 contract execution deadline.
2    Following the completion of such procurements, and
3    consistent with this paragraph (3), the Agency shall
4    calculate the payments to be made under each contract in a
5    timely fashion.
6        (F-1) Costs incurred by the electric utility pursuant
7    to a contract authorized by this subsection (d-10) shall
8    be deemed prudently incurred and reasonable in amount, and
9    the electric utility shall be entitled to full cost
10    recovery pursuant to a tariff or tariffs filed with the
11    Commission.
12        (G) The counterparty electric utility shall retire all
13    carbon mitigation credits used to comply with the
14    requirements of this subsection (d-10).
15        (H) If a carbon-free energy resource is sold to
16    another owner, the rights, obligations, and commitments
17    under this subsection (d-10) shall continue to the
18    subsequent owner.
19        (I) This subsection (d-10) shall become inoperative on
20    January 1, 2028.
21    (e) The draft procurement plans are subject to public
22comment, as required by Section 16-111.5 of the Public
23Utilities Act.
24    (f) The Agency shall submit the final procurement plan to
25the Commission. The Agency shall revise a procurement plan if
26the Commission determines that it does not meet the standards

 

 

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1set forth in Section 16-111.5 of the Public Utilities Act.
2    (g) The Agency shall assess fees to each affected utility
3to recover the costs incurred in preparation of the annual
4procurement plan for the utility.
5    (h) The Agency shall assess fees to each bidder to recover
6the costs incurred in connection with a competitive
7procurement process.
8    (i) A renewable energy credit, carbon emission credit,
9zero emission credit, or carbon mitigation credit can only be
10used once to comply with a single portfolio or other standard
11as set forth in subsection (c), subsection (d), or subsection
12(d-5) of this Section, respectively. A renewable energy
13credit, carbon emission credit, zero emission credit, or
14carbon mitigation credit cannot be used to satisfy the
15requirements of more than one standard. If more than one type
16of credit is issued for the same megawatt hour of energy, only
17one credit can be used to satisfy the requirements of a single
18standard. After such use, the credit must be retired together
19with any other credits issued for the same megawatt hour of
20energy.
21(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
22103-580, eff. 12-8-23.)
 
23    (20 ILCS 3855/1-93 new)
24    Sec. 1-93. Energy storage procurement plan.
25    (a) The Agency shall develop a storage procurement plan

 

 

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1that results in the electric utilities contracting for energy
2storage credits from contracted energy storage systems in the
3following amounts:
4        (1) at least 1,500 megawatts of cumulative energy
5    storage capacity by the end of delivery year 2024;
6        (2) at least 3,000 megawatts of cumulative energy
7    storage capacity by the end of delivery year 2025;
8        (3) at least 4,500 megawatts of cumulative energy
9    storage capacity by the end of delivery year 2026;
10        (4) at least 6,000 megawatts of cumulative energy
11    storage capacity by the end of delivery year 2027;
12        (5) at least 7,000 megawatts of cumulative energy
13    storage capacity by the end of delivery year 2028;
14        (6) at least 8,000 megawatts of cumulative energy
15    storage capacity by the end of delivery year 2029;
16        (7) at least 9,000 megawatts of cumulative energy
17    storage capacity by the end of delivery year 2030; and
18        (8) at least 15,000 megawatts of cumulative energy
19    storage capacity by the end of delivery year 2038.
20    The initial and subsequent storage procurement plans shall
21require that for each delivery year, the cumulative energy
22storage capacity contracted for by the electric utilities
23shall be procured as follows: (i) at least 22.5% procured
24using indexed credits; (ii) at least 22.5% procured using
25tolling agreements; (iii) 30% procured using either indexed
26credit or tolling agreements as approved in the storage

 

 

SB3957- 220 -LRB103 40954 SPS 74001 b

1procurement plan; and (iv) 25% procured through a separate
2redeveloper energy storage capacity procurement using tolling
3agreements. The storage procurement plan shall determine in
4advance the cumulative amount of capacity to be sought in each
5procurement by redevelopers for the delivery year. The
6cumulative amount of capacity bid by redevelopers into each
7procurement for each delivery year shall be made available to
8the public at the time the Agency submits the procurement
9event to the Commission for approval.
10    In each procurement where the cumulative amount of energy
11storage capacity bid by redevelopers is less than 25% of the
12cumulative energy storage contracted for by the electric
13utilities for any delivery year, such unmet capacity amount
14shall be included in the next redeveloper energy storage
15capacity procurement event. A redeveloper may submit multiple
16bids into any energy storage capacity procurement, including
17the redeveloper energy storage capacity procurement and any
18other energy storage capacity procurement. The Agency shall
19apply the bid price adjustment in ranking, evaluating, and
20selecting bids by redevelopers in the redeveloper energy
21storage capacity procurement.
22    (a-5) For purposes of this Section:
23    "Redeveloper" means an entity that owns one or more
24fossil-fueled plant sites in this State that on or after
25January 1, 2016 had at the location electric generation
26facilities with a capacity of at least 150 megawatts that used

 

 

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1coal or natural gas as the primary fuel to generate
2electricity, or is otherwise subject to subsection (i) of
3Section 9.15 of the Illinois Environmental Protection Act, to
4the extent the entity submits a bid for energy storage
5projects at or adjacent to such sites.
6    "Redeveloper energy storage capacity procurement" means
7unique procurement events conducted exclusively for the
8purpose of procuring from redevelopers at least 25% of the
9cumulative energy storage capacity to be contracted for by the
10electric utilities for each delivery year.
11    (b) Within 180 days after the effective date of this
12amendatory Act of the 103rd General Assembly, the Agency shall
13develop an energy storage procurement plan in accordance with
14this Section and Section 16-111.5 of the Public Utilities Act.
15    (c) For procurements of energy storage credits, the Agency
16shall procure energy storage credits using methodologies
17including, but not limited to, tolling agreements and indexed
18energy storage credits. The Agency shall select bids based on
19the bid price when compared with equal energy storage duration
20and interconnected to the same independent system operator or
21regional transmission organization and may give consideration
22to project viability and developer experience. The
23procurements of energy storage credits under this subsection
24(c) shall be made as follows:
25        (1) For indexed energy storage credit procurements,
26    the purchase price of the indexed energy storage credit

 

 

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1    payment shall be calculated for each day. The payment per
2    energy storage credit shall be equal to the difference
3    resulting from subtracting from the energy storage strike
4    price the sum of the daily energy volatility index and the
5    reference capacity price for that day. If this difference
6    results in a positive number, the electric utility shall
7    owe the seller this amount multiplied by the number of
8    indexed energy storage credit produced on the relevant
9    day. If this difference results in a negative number, the
10    settlement shall be zero. The parties shall cash settle
11    every month, summing up all settlements for the prior
12    month.
13        (2) For tolling agreements, the purchase price shall
14    be the tolling rate as bid by the winning bidder.
15        (3) For pricing structures that are neither indexed
16    credits nor tolling agreements, the Agency, after
17    consideration of feedback from potential bidders and in
18    consideration of financeability, shall develop
19    methodologies for pricing structure and bidding
20    procedures.
21    For the purposes of this subsection (c):
22    "Developer experience" means the experience of a bidder or
23its affiliates assessed by the Agency, including based on
24quantity of energy projects brought to commercial operation,
25quantity of energy projects under ownership, and awards of
26incentive contracts.

 

 

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1    "Project viability" means an assessment by the Agency, for
2the purposes of bid evaluation, of the project's potential to
3reach commercial operation as assessed by standards developed
4by the Agency regarding permitting milestones, interconnection
5milestones, and site control milestones.
6    (d) All procurements under this Section shall comply with
7the geographic requirements in subparagraph (I) of paragraph
8(1) of subsection (c) of Section 1-75 and shall follow the
9procurement processes and procedures described in this Section
10and Section 16-111.5 of the Public Utilities Act, to the
11extent practicable, and these processes and procedures may be
12expedited to accommodate the schedule established by this
13Section. The Agency shall require all bidders to pay to the
14Agency a nonrefundable deposit of $10,000 per bid. Bidders
15shall also demonstrate experience developing to commercial
16readiness. The owner of the winning bidders, or the owner's
17engineering, procurement, and construction contractors, shall
18comply with the prevailing wage requirements in subparagraph
19(Q) of paragraph (1) of subsection (c) of Section 1-75 and
20equity accountability system requirements in subsection (c-10)
21of Section 1-75. As used in this subsection (d), "developing
22to commercial readiness" means having notice to proceed,
23owning, or operating energy facilities with a combined
24nameplate capacity of at least 100 megawatts.
25    (d-5) All redeveloper energy storage capacity procurements
26under this Section shall require that the owner of the winning

 

 

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1bidders or the owner's engineering, procurement, and
2construction contractor, of the energy storage resources have
3entered, or commit to enter, into a project labor agreement
4for the construction of the energy storage resource consistent
5with subsection (j) and certify that not less than the
6prevailing wage, as determined by the Illinois Prevailing Wage
7Act, was or will be paid to employees who are engaged in
8construction activities associated with the energy storage
9resource consistent with subsection (j).
10    All redeveloper owners shall commit to:
11        (1) coordinate with the Department of Commerce and
12    Economic Opportunity to develop and provide an additional
13    job training and education program to existing and former
14    employees of the redeveloper at the location of the
15    proposed energy storage resource who are or were members
16    of a labor union to provide the requisite skills,
17    knowledge, and training required to operate and maintain
18    energy storage resources;
19        (2) create employment opportunities for persons who
20    graduate from that job training and education program; and
21        (3) within 120 days after the Commission's approval of
22    the owner's energy storage contract, submit to the
23    Commission a diversity, equity, and inclusion plan
24    consistent with paragraph (11) of subsection (c-5) of
25    Section 1-75.
26    As an alternative to paragraphs (1) and (2), for existing

 

 

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1employees of the redeveloper at the location of the proposed
2energy storage resource who are members of a labor union,
3redeveloper owners may commit to providing opportunities for
4such employees to seek job training or education opportunities
5at the employer's expense of up to a stated amount,
6employer-paid outplacement services, providing opportunities
7to apply for other positions with the employer, and for the
8development and operation of energy storage resources at the
9site of the redeveloper, using, to the extent possible, labor
10union, State, or other job and workforce training programs
11established to support the development, construction, and
12operation of renewable energy and energy storage resources in
13this State.
14    The redeveloper energy storage procurement plan shall
15provide that the Agency shall submit the results of its
16procurement events and proposed energy storage contracts to
17the Commission for approval. After notice and opportunity for
18comment, but no later than 42 days after the Agency has filed
19the results of its redeveloper energy storage procurement
20events and the proposed energy storage contracts, the
21Commission shall approve the results and the proposed energy
22storage contracts or approve them with modification.
23    (e) No later than December 31, 2026, and every 2 years
24thereafter, the Agency shall conduct an analysis to determine
25whether the contracted quantity of energy storage in energy
26storage capacity and energy storage duration is sufficient to

 

 

SB3957- 226 -LRB103 40954 SPS 74001 b

1support the State's renewable energy standards and carbon
2emission standards. To conduct the analysis, the Agency shall
3retain an independent consultant with experience in wholesale
4electric system modeling in PJM and MISO and may seek the
5support of the federal Department of Energy and National Labs
6to conduct its analysis. The independent consultant shall
7utilize a production cost model, capacity expansion model, or
8similar comprehensive analysis of the electricity systems and
9shall provide opportunities for stakeholders to provide
10feedback on the scope, inputs, and assumptions used in the
11analysis. The Agency is authorized to collect costs for
12conducting the analysis from electric utilities. The electric
13utilities are authorized to recover the cost of the analysis
14as part of the recovery of the cost of energy storage credits,
15as authorized in this Section and Section 16-108 of the Public
16Utilities Act. If the Agency determines that the need for
17energy storage capacity or energy storage duration is greater
18than the energy storage credit target in this Section, the
19Agency shall establish, and the Commission shall approve, new
20energy storage credit targets to meet the identified need. If
21the Agency determines that deployment of energy storage beyond
222030 will not be achieved through wholesale market prices and
23other energy storage programs established by the State, the
24Agency shall establish additional targets for years beyond
252030.
26    (f) The Agency shall include in the long-term procurement

 

 

SB3957- 227 -LRB103 40954 SPS 74001 b

1plan the energy storage duration of energy storage systems
2from which the Agency shall procure energy storage credits.
3Informed by the analysis described in subsection (e), when
4available, the Agency shall designate the energy storage
5duration or durations and the amount of energy storage
6capacity at each duration from which the Agency intends to
7procure energy storage credits. The long-term procurement plan
8shall further propose allocation of procurements between
9indexed credits and tolling agreements, taking into
10consideration factors including timely commercial operation of
11storage resources.
12    (g) The Agency shall identify in the long-term procurement
13plan the regional transmission organization or independent
14system operator to which energy storage systems shall be
15interconnected in order to be eligible to offer a strike price
16for energy storage credits. Following solicitation and receipt
17of feedback from stakeholders including potential bidders, the
18Agency shall propose in the long-term procurement plan key
19terms and conditions of the standard contracts for indexed
20credit and tolling agreements. The key terms shall be designed
21to ensure the agreements are financeable and incentivize
22development.
23    (h) The Agency shall procure cost-effective energy storage
24credits in at least the amounts identified in subsection (a)
25of this Section. The procurement administrator shall establish
26confidential price benchmarks based on publicly available data

 

 

SB3957- 228 -LRB103 40954 SPS 74001 b

1on regional technology costs. Confidential benchmarks shall be
2developed by the procurement administrator, in consultation
3with the Commission staff, Agency staff, and the procurement
4monitor, and shall be subject to Commission review and
5approval. Benchmarks shall reflect development, financing, and
6related costs resulting from requirements imposed through
7other provisions of State law. As used in this subsection(h),
8"cost effective" means that the energy storage credit strike
9price does not exceed confidential benchmarks.
10    (i) When developing each storage procurement plan, upon
11solicitation from stakeholders, the Agency shall consider
12additional procurement approaches that would result in the
13electric utilities contracting for energy storage to achieve
14the requirements in subsection (a).
15    (j) Storage energy credits procured under this Section
16must be from energy storage systems built by general
17contractors that enter into a project labor agreement prior to
18construction. The project labor agreement shall be filed with
19the Director in accordance with procedures established by the
20Agency through its storage procurement plan. Any information
21submitted to the Agency under this subsection shall be
22considered commercially sensitive information. At a minimum,
23the project labor agreement must provide the names, addresses,
24and occupations of the owner of the plant and the individuals
25representing the labor organization employees participating in
26the project labor agreement in accordance with the Project

 

 

SB3957- 229 -LRB103 40954 SPS 74001 b

1Labor Agreements Act. The agreement must also specify the
2terms and conditions as described in this Act.
3    (k) In order to promote the competitive development of
4energy storage system in furtherance of the State's interest
5in the health, safety, and welfare of its residents, storage
6credits shall not be eligible to be selected under this
7Section if they are sourced from an energy storage system
8whose costs were being recovered through rates regulated by
9this State or any other state or states on or after January 1,
102017. Each contract executed to purchase storage credits under
11this Section shall provide for the contract's termination if
12the costs of the energy storage system supplying the storage
13credits subsequently begin to be recovered through rates
14regulated by this State or any other state or states. Each
15contract shall provide that, in the event the costs of the
16energy storage system supplying the storage credits
17subsequently begin to be recovered through rates regulated by
18this State or any other state or states, the supplier of the
19credits must return 110% of all payments received under the
20contract. Amounts returned under the requirements of this
21subsection (k) shall be refunded to ratepayers. No entity
22shall be permitted to bid unless it certifies to the Agency
23that it is not an electric utility, as defined in Section
2416-102 of the Public Utilities Act, serving more than 10,000
25customers in the State.
26    (l) The Agency shall require that as a prerequisite to

 

 

SB3957- 230 -LRB103 40954 SPS 74001 b

1payment for any storage credits that the winning bidder
2provide the Agency or its designee a copy of the
3interconnection agreement under which the applicable energy
4storage system is connected to the transmission or
5distribution system.
6    (m) To ensure the successful development of new energy
7storage systems for procurements under this Section, a winning
8bidder or the current seller under contract countersigned by
9an electric utility counterparty may petition the Commission
10to revise the terms in the contract. Prior to such petition,
11upon request by the winning bidder or seller, the Agency shall
12negotiate directly with the winning bidder or seller. If
13following the direct negotiations, the Agency and the winning
14bidder reach an agreement on amended terms or a strike price
15and the Agency finds that the amended terms or strike price
16reflect a change in circumstances since the date of the bid
17based on circumstances unforeseeable at the time of the bid,
18upon petition by the winning bidder or current seller, then
19the Commission shall issue an order directing the utility
20counterparty to execute a form amendment drafted by the Agency
21with the revised terms or the strike price. The Agency shall
22provide the amendment to the utility within 15 business days
23after the Commission's order and the utility buyer shall
24execute the amendment not more than 7 calendar days after
25delivery by the Agency. The Agency shall develop the form
26amendment following comment by interested parties.
 

 

 

SB3957- 231 -LRB103 40954 SPS 74001 b

1    (20 ILCS 3855/1-94 new)
2    Sec. 1-94. Firm energy resource procurement plan. The
3Agency is authorized to develop and implement a firm energy
4resource procurement plan for new resources, including
5initiating proceedings and conducting competitive
6solicitations to deploy new long-duration and multi-day energy
7storage. The procurement plan shall ensure regular procurement
8opportunities to deploy new long-duration and multi-day energy
9storage resources by 2030 and shall ensure stable, competitive
10resource development at a pace needed to ensure grid
11reliability and resilience during atypical or extreme grid
12conditions that may occur at least once in 20 years while
13meeting the emissions requirements of Section 9.15 of the
14Environmental Protection Act. The Agency's plan shall ensure
15that a minimum of 4 new long-duration or multi-day energy
16storage resources, each with a rated capacity greater than 20
17megawatts, shall be deployed or contracted by the end of
18delivery year 2026. Within one year after the effective date
19of this amendatory Act of the 103rd General Assembly, the
20Agency shall develop a firm energy resource procurement plan
21in accordance with this Section and Section 16-111.5 of the
22Public Utilities Act.
 
23    Section 10. The Public Utilities Act is amended by
24changing Sections 16-107.5, 16-107.6, 16-108, and 16-111.5 and

 

 

SB3957- 232 -LRB103 40954 SPS 74001 b

1by adding Sections 8-513, 16-107.9, 16-107.10, and 16-107.11
2and Article XXIII as follows:
 
3    (220 ILCS 5/8-513 new)
4    Sec. 8-513. Staffing adequacy.
5    (a) The General Assembly finds and declares that devotion
6of adequate resources, including human resources and technical
7resources, to interconnection of electric generation to the
8electric distribution grid and transmission grid are necessary
9to meeting the State's renewable energy goals, including the
10goals set out in Section 1-75 of the Illinois Power Agency Act.
11The General Assembly further finds that insufficient human
12resources or inadequate systems, recordkeeping, or technical
13ability to interconnection by electric utilities risks delays,
14mistakes, and disputes under applicable interconnection
15procedures.
16    (b) Each electric utility, as defined in Section 16-102,
17shall demonstrate sufficient resources devoted to
18interconnection.
19    (c) The Commission shall review in a contested proceeding
20the compliance of each electric utility with the electric
21utility's individual compliance with obligations under
22subsection (b) of this Section. If the Commission, after
23notice and hearing, finds that an electric utility did not
24meet its obligations under subsection (b) of this Section, or
25is at risk of not meeting such obligations in the future, the

 

 

SB3957- 233 -LRB103 40954 SPS 74001 b

1Commission may require the electric utility to submit a
2compliance plan to meet such obligations. The Commission shall
3approve or approve with modifications a compliance plan if the
4Commission finds that the compliance plan is likely to ensure
5compliance with the electric utility's obligations under
6subsection (b) of this Section, or likely with modifications
7to ensure compliance.
8    (d) As used in this Section:
9        "Interconnection" means the steps to interconnect
10    electric generation fueled by renewable resources, energy
11    storage, or a combination of generation fueled by
12    renewable resources and storage under procedures set out
13    in this Act, rules adopted by the Commission, PJM
14    Interconnection, Inc. or its successor, or Midcontinent
15    Independent System Operator or its successor.
16        "Resources" means the combination of employees,
17    independent contractors, vendors, and systems and software
18    that directly support interconnection but shall not
19    include the transformers, reclosers, line, and similar
20    physical assets used to connect or upgrade the
21    distribution or transmission grids.
 
22    (220 ILCS 5/16-107.5)
23    Sec. 16-107.5. Net electricity metering.
24    (a) The General Assembly finds and declares that a program
25to provide net electricity metering, as defined in this

 

 

SB3957- 234 -LRB103 40954 SPS 74001 b

1Section, for eligible customers can encourage private
2investment in renewable energy resources, stimulate economic
3growth, enhance the continued diversification of Illinois'
4energy resource mix, and protect the Illinois environment.
5Further, to achieve the goals of this Act that robust options
6for customer-site distributed generation continue to thrive in
7Illinois, the General Assembly finds that a predictable
8transition must be ensured for customers between full net
9metering at the retail electricity rate to the distribution
10generation rebate described in Section 16-107.6.
11    (b) As used in this Section, (i) "community renewable
12generation project" shall have the meaning set forth in
13Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
14customer" means a retail customer that owns, hosts, or
15operates, including any third-party owned systems, a solar,
16wind, or other eligible renewable electrical generating
17facility that is located on the customer's premises or
18customer's side of the billing meter and is intended primarily
19to offset the customer's own current or future electrical
20requirements; (iii) "electricity provider" means an electric
21utility or alternative retail electric supplier; (iv)
22"eligible renewable electrical generating facility" means a
23generator, which may include the co-location of an energy
24storage system, that is interconnected under rules adopted by
25the Commission and is powered by solar electric energy, wind,
26dedicated crops grown for electricity generation, agricultural

 

 

SB3957- 235 -LRB103 40954 SPS 74001 b

1residues, untreated and unadulterated wood waste, livestock
2manure, anaerobic digestion of livestock or food processing
3waste, fuel cells or microturbines powered by renewable fuels,
4or hydroelectric energy; (v) "net electricity metering" (or
5"net metering") means the measurement, during the billing
6period applicable to an eligible customer, of the net amount
7of electricity supplied by an electricity provider to the
8customer or provided to the electricity provider by the
9customer or subscriber; (vi) "subscriber" shall have the
10meaning as set forth in Section 1-10 of the Illinois Power
11Agency Act; (vii) "subscription" shall have the meaning set
12forth in Section 1-10 of the Illinois Power Agency Act; (viii)
13"energy storage system" means commercially available
14technology that is capable of absorbing energy and storing it
15for a period of time for use at a later time, including, but
16not limited to, electrochemical, thermal, and
17electromechanical technologies, and may be interconnected
18behind the customer's meter or interconnected behind its own
19meter; and (ix) "future electrical requirements" means modeled
20electrical requirements upon occupation of a new or vacant
21property, and other reasonable expectations of future
22electrical use, as well as, for occupied properties, a
23reasonable approximation of the annual load of 2 electric
24vehicles and, for non-electric heating customers, a reasonable
25approximation of the incremental electric load associated with
26fuel switching. The approximations shall be applied to the

 

 

SB3957- 236 -LRB103 40954 SPS 74001 b

1appropriate net metering tariff and do not need to be unique to
2each individual eligible customer. The utility shall submit
3these approximations to the Commission for review,
4modification, and approval.
5    (c) A net metering facility shall be equipped with
6metering equipment that can measure the flow of electricity in
7both directions at the same rate.
8        (1) For eligible customers whose electric service has
9    not been declared competitive pursuant to Section 16-113
10    of this Act as of July 1, 2011 and whose electric delivery
11    service is provided and measured on a kilowatt-hour basis
12    and electric supply service is not provided based on
13    hourly pricing, this shall typically be accomplished
14    through use of a single, bi-directional meter. If the
15    eligible customer's existing electric revenue meter does
16    not meet this requirement, the electricity provider shall
17    arrange for the local electric utility or a meter service
18    provider to install and maintain a new revenue meter at
19    the electricity provider's expense, which may be the smart
20    meter described by subsection (b) of Section 16-108.5 of
21    this Act.
22        (2) For eligible customers whose electric service has
23    not been declared competitive pursuant to Section 16-113
24    of this Act as of July 1, 2011 and whose electric delivery
25    service is provided and measured on a kilowatt demand
26    basis and electric supply service is not provided based on

 

 

SB3957- 237 -LRB103 40954 SPS 74001 b

1    hourly pricing, this shall typically be accomplished
2    through use of a dual channel meter capable of measuring
3    the flow of electricity both into and out of the
4    customer's facility at the same rate and ratio. If such
5    customer's existing electric revenue meter does not meet
6    this requirement, then the electricity provider shall
7    arrange for the local electric utility or a meter service
8    provider to install and maintain a new revenue meter at
9    the electricity provider's expense, which may be the smart
10    meter described by subsection (b) of Section 16-108.5 of
11    this Act.
12        (3) For all other eligible customers, until such time
13    as the local electric utility installs a smart meter, as
14    described by subsection (b) of Section 16-108.5 of this
15    Act, the electricity provider may arrange for the local
16    electric utility or a meter service provider to install
17    and maintain metering equipment capable of measuring the
18    flow of electricity both into and out of the customer's
19    facility at the same rate and ratio, typically through the
20    use of a dual channel meter. If the eligible customer's
21    existing electric revenue meter does not meet this
22    requirement, then the costs of installing such equipment
23    shall be paid for by the customer.
24    (d) An electricity provider shall measure and charge or
25credit for the net electricity supplied to eligible customers
26or provided by eligible customers whose electric service has

 

 

SB3957- 238 -LRB103 40954 SPS 74001 b

1not been declared competitive pursuant to Section 16-113 of
2this Act as of July 1, 2011 and whose electric delivery service
3is provided and measured on a kilowatt-hour basis and electric
4supply service is not provided based on hourly pricing in the
5following manner:
6        (1) If the amount of electricity used by the customer
7    during the billing period exceeds the amount of
8    electricity produced by the customer, the electricity
9    provider shall charge the customer for the net electricity
10    supplied to and used by the customer as provided in
11    subsection (e-5) of this Section.
12        (2) If the amount of electricity produced by a
13    customer during the billing period exceeds the amount of
14    electricity used by the customer during that billing
15    period, the electricity provider supplying that customer
16    shall apply a 1:1 kilowatt-hour credit to a subsequent
17    bill for service to the customer for the net electricity
18    supplied to the electricity provider. The electricity
19    provider shall continue to carry over any excess
20    kilowatt-hour credits earned and apply those credits to
21    subsequent billing periods to offset any
22    customer-generator consumption in those billing periods
23    until all credits are used or until the end of the
24    annualized period.
25        (3) At the end of the year or annualized over the
26    period that service is supplied by means of net metering,

 

 

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1    or in the event that the retail customer terminates
2    service with the electricity provider prior to the end of
3    the year or the annualized period, any remaining credits
4    in the customer's account shall expire.
5    (d-5) An electricity provider shall measure and charge or
6credit for the net electricity supplied to eligible customers
7or provided by eligible customers whose electric service has
8not been declared competitive pursuant to Section 16-113 of
9this Act as of July 1, 2011 and whose electric delivery service
10is provided and measured on a kilowatt-hour basis and electric
11supply service is provided based on hourly pricing or
12time-of-use rates in the following manner:
13        (1) If the amount of electricity used by the customer
14    during any hourly period or time-of-use period exceeds the
15    amount of electricity produced by the customer, the
16    electricity provider shall charge the customer for the net
17    electricity supplied to and used by the customer according
18    to the terms of the contract or tariff to which the same
19    customer would be assigned to or be eligible for if the
20    customer was not a net metering customer.
21        (2) If the amount of electricity produced by a
22    customer during any hourly period or time-of-use period
23    exceeds the amount of electricity used by the customer
24    during that hourly period or time-of-use period, the
25    energy provider shall apply a credit for the net
26    kilowatt-hours produced in such period. The credit shall

 

 

SB3957- 240 -LRB103 40954 SPS 74001 b

1    consist of an energy credit and a delivery service credit.
2    The energy credit shall be valued at the same price per
3    kilowatt-hour as the electric service provider would
4    charge for kilowatt-hour energy sales during that same
5    hourly period or time-of-use period. The delivery credit
6    shall be equal to the net kilowatt-hours produced in such
7    hourly period or time-of-use period times a credit that
8    reflects all kilowatt-hour based charges in the customer's
9    electric service rate, excluding energy charges.
10    (e) An electricity provider shall measure and charge or
11credit for the net electricity supplied to eligible customers
12whose electric service has not been declared competitive
13pursuant to Section 16-113 of this Act as of July 1, 2011 and
14whose electric delivery service is provided and measured on a
15kilowatt demand basis and electric supply service is not
16provided based on hourly pricing in the following manner:
17        (1) If the amount of electricity used by the customer
18    during the billing period exceeds the amount of
19    electricity produced by the customer, then the electricity
20    provider shall charge the customer for the net electricity
21    supplied to and used by the customer as provided in
22    subsection (e-5) of this Section. The customer shall
23    remain responsible for all taxes, fees, and utility
24    delivery charges that would otherwise be applicable to the
25    net amount of electricity used by the customer.
26        (2) If the amount of electricity produced by a

 

 

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1    customer during the billing period exceeds the amount of
2    electricity used by the customer during that billing
3    period, then the electricity provider supplying that
4    customer shall apply a 1:1 kilowatt-hour credit that
5    reflects the kilowatt-hour based charges in the customer's
6    electric service rate to a subsequent bill for service to
7    the customer for the net electricity supplied to the
8    electricity provider. The electricity provider shall
9    continue to carry over any excess kilowatt-hour credits
10    earned and apply those credits to subsequent billing
11    periods to offset any customer-generator consumption in
12    those billing periods until all credits are used or until
13    the end of the annualized period.
14        (3) At the end of the year or annualized over the
15    period that service is supplied by means of net metering,
16    or in the event that the retail customer terminates
17    service with the electricity provider prior to the end of
18    the year or the annualized period, any remaining credits
19    in the customer's account shall expire.
20    (e-5) An electricity provider shall provide electric
21service to eligible customers who utilize net metering at
22non-discriminatory rates that are identical, with respect to
23rate structure, retail rate components, and any monthly
24charges, to the rates that the customer would be charged if not
25a net metering customer. An electricity provider shall not
26charge net metering customers any fee or charge or require

 

 

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1additional equipment, insurance, or any other requirements not
2specifically authorized by interconnection standards
3authorized by the Commission, unless the fee, charge, or other
4requirement would apply to other similarly situated customers
5who are not net metering customers. The customer will remain
6responsible for all taxes, fees, and utility delivery charges
7that would otherwise be applicable to the net amount of
8electricity used by the customer. Subsections (c) through (e)
9of this Section shall not be construed to prevent an
10arms-length agreement between an electricity provider and an
11eligible customer that sets forth different prices, terms, and
12conditions for the provision of net metering service,
13including, but not limited to, the provision of the
14appropriate metering equipment for non-residential customers.
15    (f) Notwithstanding the requirements of subsections (c)
16through (e-5) of this Section, an electricity provider must
17require dual-channel metering for customers operating eligible
18renewable electrical generating facilities to whom the
19provisions of neither subsection (d), (d-5), nor (e) of this
20Section apply. In such cases, electricity charges and credits
21shall be determined as follows:
22        (1) The electricity provider shall assess and the
23    customer remains responsible for all taxes, fees, and
24    utility delivery charges that would otherwise be
25    applicable to the gross amount of kilowatt-hours supplied
26    to the eligible customer by the electricity provider.

 

 

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1        (2) Each month that service is supplied by means of
2    dual-channel metering, the electricity provider shall
3    compensate the eligible customer for any excess
4    kilowatt-hour credits at the electricity provider's
5    avoided cost of electricity supply over the monthly period
6    or as otherwise specified by the terms of a power-purchase
7    agreement negotiated between the customer and electricity
8    provider.
9        (3) For all eligible net metering customers taking
10    service from an electricity provider under contracts or
11    tariffs employing hourly or time-of-use rates, any monthly
12    consumption of electricity shall be calculated according
13    to the terms of the contract or tariff to which the same
14    customer would be assigned to or be eligible for if the
15    customer was not a net metering customer. When those same
16    customer-generators are net generators during any discrete
17    hourly or time-of-use period, the net kilowatt-hours
18    produced shall be valued at the same price per
19    kilowatt-hour as the electric service provider would
20    charge for retail kilowatt-hour sales during that same
21    time-of-use period.
22    (g) For purposes of federal and State laws providing
23renewable energy credits or greenhouse gas credits, the
24eligible customer shall be treated as owning and having title
25to the renewable energy attributes, renewable energy credits,
26and greenhouse gas emission credits related to any electricity

 

 

SB3957- 244 -LRB103 40954 SPS 74001 b

1produced by the qualified generating unit. The electricity
2provider may not condition participation in a net metering
3program on the signing over of a customer's renewable energy
4credits; provided, however, this subsection (g) shall not be
5construed to prevent an arms-length agreement between an
6electricity provider and an eligible customer that sets forth
7the ownership or title of the credits.
8    (h) Within 120 days after the effective date of this
9amendatory Act of the 95th General Assembly, the Commission
10shall establish standards for net metering and, if the
11Commission has not already acted on its own initiative,
12standards for the interconnection of eligible renewable
13generating equipment to the utility system. The
14interconnection standards shall address any procedural
15barriers, delays, and administrative costs associated with the
16interconnection of customer-generation while ensuring the
17safety and reliability of the units and the electric utility
18system. The Commission shall consider the Institute of
19Electrical and Electronics Engineers (IEEE) Standard 1547 and
20the issues of (i) reasonable and fair fees and costs, (ii)
21clear timelines for major milestones in the interconnection
22process, (iii) nondiscriminatory terms of agreement, and (iv)
23any best practices for interconnection of distributed
24generation.
25    (h-5) Within 90 days after the effective date of this
26amendatory Act of the 103rd General Assembly amendatory Act of

 

 

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1the 102nd General Assembly, the Commission shall:
2        (1) establish an Interconnection Working Group. The
3    working group shall include representatives from electric
4    utilities, developers of renewable electric generating
5    facilities, other industries that regularly apply for
6    interconnection with the electric utilities,
7    representatives of distributed generation customers, the
8    Commission Staff, and such other stakeholders with a
9    substantial interest in the topics addressed by the
10    Interconnection Working Group. The Interconnection Working
11    Group shall address at least the following issues:
12            (A) cost and best available technology for
13        interconnection and metering, including the
14        standardization and publication of standard costs;
15            (B) transparency, accuracy and use of the
16        distribution interconnection queue and hosting
17        capacity maps;
18            (C) distribution system upgrade cost avoidance
19        through use of advanced inverter functions;
20            (D) predictability of the queue management process
21        and enforcement of timelines;
22            (E) benefits and challenges associated with group
23        studies and cost sharing;
24            (F) minimum requirements for application to the
25        interconnection process and throughout the
26        interconnection process to avoid queue clogging

 

 

SB3957- 246 -LRB103 40954 SPS 74001 b

1        behavior;
2            (G) process and customer service for
3        interconnecting customers adopting distributed energy
4        resources, including energy storage;
5            (H) options for metering distributed energy
6        resources, including energy storage;
7            (I) interconnection of new technologies, including
8        smart inverters and energy storage;
9            (J) collect, share, and examine data on Level 1
10        interconnection costs, including cost and type of
11        upgrades required for interconnection, and use this
12        data to inform the final standardized cost of Level 1
13        interconnection; and
14            (K) such other technical, policy, and tariff
15        issues related to and affecting interconnection
16        performance and customer service as determined by the
17        Interconnection Working Group.
18        The Commission may create subcommittees of the
19    Interconnection Working Group to focus on specific issues
20    of importance, as appropriate. The Ombudsman on behalf of
21    the Interconnection Working Group shall report to the
22    Commission on recommended improvements to interconnection
23    rules and tariffs and policies as determined by the
24    Interconnection Working Group at least every 6 months.
25    Such reports shall include consensus recommendations of
26    the Interconnection Working Group and, if applicable,

 

 

SB3957- 247 -LRB103 40954 SPS 74001 b

1    additional recommendations for which consensus was not
2    reached. The Commission shall use the report from the
3    Interconnection Working Group to determine whether
4    processes should be commenced to formally codify or
5    implement the recommendations;
6        (2) designate the Ombudsperson described in Section
7    23-110, or his or her designee within the Office of
8    Interconnection and Renewable Development, to act as the
9    facilitator for the Interconnection Working Group for the
10    purpose of resolving create or contract for an Ombudsman
11    to resolve interconnection disputes through mediation or
12    non-binding arbitration, to the extent mediation or
13    non-binding arbitration is available under rules adopted
14    by the Commission. As the facilitator for the
15    Interconnection Working Group, the Ombudsperson shall
16    convene stakeholders to set agendas for discussions, lead
17    meetings, ensure notes are distributed to members, and
18    perform other tasks necessary to support the good-faith
19    advancement of discussions. The Ombudsperson Ombudsman may
20    be paid in full or in part through fees levied on the
21    initiators of the dispute; and
22        (3) determine a single standardized cost for Level 1
23    interconnections, which shall not exceed $200; .
24        (4) require all electric utilities to perform a system
25    impact and facilities study to provide a detailed
26    breakdown of the non-binding costs of operation and an

 

 

SB3957- 248 -LRB103 40954 SPS 74001 b

1    estimate that individually itemizes operational costs,
2    including: (i) equipment by type or model, (ii) labor,
3    (iii) operation and maintenance, (iv) engineering and
4    design, (v) permitting, (vi) easements and rights-of-way,
5    (vii) direct overhead, and (viii) indirect overhead;
6        (5) prohibit electric utilities from recovering from
7    an interconnection customer more than 125% of the
8    non-binding cost estimate in the system impact and
9    facilities study described in paragraph (4). An electric
10    utility with a Multi-Year Rate Plan may recover prudent
11    and reasonable costs of interconnection that are not
12    recoverable from the interconnection customer under this
13    paragraph (5) from all customers through its Multi-Year
14    Rate Plan;
15        (6) open a proceeding, not to exceed 240 days in
16    duration, to create a uniform standard for cost-sharing of
17    interconnections. As used in this paragraph, "cost-sharing
18    of interconnections" means a system under which an
19    electric utility assigns the costs of upgrades to a
20    distribution-voltage substation that exceeds $5,000,000
21    between the interconnection customer that initially causes
22    the upgrade and interconnection customers subsequent in
23    the interconnection queue, not to exceed 10 customers,
24    that directly benefit from the increased hosting capacity
25    from the upgrade, including applicants that subsequently
26    enter the queue;

 

 

SB3957- 249 -LRB103 40954 SPS 74001 b

1        (7) adopt rules, in addition to dispute resolution
2    provisions under the Commission's rules authorized by
3    subsection (h) of this Section, providing that upon
4    complaint by an electric utility, an interconnection
5    customer, or an interconnection applicant, the
6    Ombudsperson, or his or her designee, shall provide a
7    recommended resolution of any dispute within 5 business
8    days after receiving the complaint. The electric utility,
9    the interconnection customer, the interconnection
10    applicant, or any other party authorized to initiate
11    dispute resolution under the Commission's rules authorized
12    by subsection (h) of this Section may include the
13    Ombudsperson's recommendation in any dispute resolution.
14    Nothing in this paragraph (7) prohibits the Ombudsperson
15    from taking part in a dispute as required by this Section
16    or the Commission's rules;
17        (8) require each electric utility to offer flexible
18    interconnection. An interconnection applicant may propose
19    flexible interconnection options and an electric utility
20    shall not unreasonably deny the proposal. If curtailment
21    is expected under the flexible interconnection option, the
22    electric utility shall provide an analysis of the expected
23    rate of curtailment, inclusive of calculations, as well as
24    load, generation, contingency, and system limit
25    assumptions used. Each study of interconnection costs with
26    a cost exceeding $0.30 per watt shall include an

 

 

SB3957- 250 -LRB103 40954 SPS 74001 b

1    evaluation of flexible interconnection options. As used in
2    this paragraph, "flexible interconnection" means active or
3    passive hardware, software, or other controls allowing
4    curtailment of distributed energy resources during grid
5    conditions that might otherwise impact safety or
6    reliability of the distribution system;
7        (9) prohibit any electric utility from requiring a
8    deposit for construction of interconnection facilities or
9    distribution upgrades of greater than $1,000,000 and
10    making a payment of more than 25% of the amount before 20
11    business days before the engineering, procurement, and
12    construction of the interconnection facilities or
13    distribution upgrades;
14        (10) require all electric utilities, in studying
15    potential interconnection of distributed energy resources,
16    to present a proposed scope of upgrades and non-binding
17    cost estimate for the native feeder as well as the
18    non-binding cost estimate and scope of upgrades for any
19    other feeders proposed by the utility if different. The
20    interconnection customer shall be entitled to choose
21    between the 2 or more options presented by the electric
22    utility. In addition, the electric utility shall present a
23    separate proposed scope and non-binding cost estimate for
24    exceeding any distributed energy resource capacity limits
25    imposed by the electric utility;
26        (11) prohibit the electric utility from conditioning

 

 

SB3957- 251 -LRB103 40954 SPS 74001 b

1    study of an interconnection application on study, deposit,
2    or approval of any other distributed energy resource ahead
3    in queue, however nothing prohibits an electric utility
4    from identifying contingent upgrades for applicants lower
5    in queue. In such case, the electric utility shall
6    identify the projects ahead of the applicant in the queue
7    to the applicant or interconnection customer;
8        (12) require facilities study, as defined under the
9    Commission's rules adopted pursuant to subsection (h) of
10    this Section, to include analysis of required easements,
11    including the PIN of each parcel on which
12    customer-acquired easements are needed. The electric
13    utility shall allow use of the electric utility's
14    easements for interconnection facilities and distribution
15    upgrades, including interconnection facilities and
16    distribution upgrades constructed by the applicant,
17    interconnection customer, or a third party on their
18    behalf;
19        (13) require each electric utility to provide guidance
20    to applicants lower in queue on how contingent upgrade
21    costs will flow through the interconnection queue,
22    inclusive of the order of projects on which those upgrades
23    will fall, the allowable timelines for the electric
24    distribution utilities to notify the next project
25    following the withdrawal of the responsible project, and
26    establishing timelines for projects on which these

 

 

SB3957- 252 -LRB103 40954 SPS 74001 b

1    contingent upgrades fall to either pay the additional
2    deposit amount or withdraw their project;
3        (14) require each utility to maintain a public queue
4    with project-specific information including nameplate
5    capacity, energy storage nameplate capacity, if any,
6    contingent upgrades, if any, and estimated non-binding
7    interconnection cost provided by the electric utility to
8    the applicant or interconnection customer. The Commission
9    may require additional information be provided under this
10    paragraph (14); and
11        (15) require each electric utility serving more than
12    100,000 customers on January 1, 2023, to the extent not
13    provided in its multi-year grid plan, to submit to the
14    Commission a plan to implement public dynamic hosting
15    capacity maps not later than January 1, 2026. For the
16    purposes of this paragraph (15), "dynamic hosting capacity
17    maps" means public-facing hosting capacity maps that are
18    updated in real time or not less frequently than daily,
19    based on information received or provided by the electric
20    utility.
21    (i) All electricity providers shall begin to offer net
22metering no later than April 1, 2008.
23    (j) An electricity provider shall provide net metering to
24eligible customers according to subsections (d), (d-5), and
25(e). Eligible renewable electrical generating facilities for
26which eligible customers registered for net metering before

 

 

SB3957- 253 -LRB103 40954 SPS 74001 b

1January 1, 2025 shall continue to receive net metering
2services according to subsections (d), (d-5), and (e) of this
3Section for the lifetime of the system, regardless of whether
4those retail customers change electricity providers or whether
5the retail customer benefiting from the system changes. On and
6after January 1, 2025, any eligible customer that applies for
7net metering and previously would have qualified under
8subsections (d), (d-5), or (e) shall only be eligible for net
9metering as described in subsection (n).
10    (k) Each electricity provider shall maintain records and
11report annually to the Commission the total number of net
12metering customers served by the provider, as well as the
13type, capacity, and energy sources of the generating systems
14used by the net metering customers. Nothing in this Section
15shall limit the ability of an electricity provider to request
16the redaction of information deemed by the Commission to be
17confidential business information.
18    (l)(1) Notwithstanding the definition of "eligible
19customer" in item (ii) of subsection (b) of this Section, each
20electricity provider shall allow net metering as set forth in
21this subsection (l) and for the following projects, provided
22that only electric utilities serving more than 200,000
23customers as of January 1, 2021 shall provide net metering for
24projects that are eligible for subparagraph (C) of this
25paragraph (1) and have energized after the effective date of
26this amendatory Act of the 102nd General Assembly:

 

 

SB3957- 254 -LRB103 40954 SPS 74001 b

1        (A) properties owned or leased by multiple customers
2    that contribute to the operation of an eligible renewable
3    electrical generating facility through an ownership or
4    leasehold interest of at least 200 watts in such facility,
5    such as a community-owned wind project, a community-owned
6    biomass project, a community-owned solar project, or a
7    community methane digester processing livestock waste from
8    multiple sources, provided that the facility is also
9    located within the utility's service territory;
10        (B) individual units, apartments, or properties
11    located in a single building that are owned or leased by
12    multiple customers and collectively served by a common
13    eligible renewable electrical generating facility, such as
14    an office or apartment building, a shopping center or
15    strip mall served by photovoltaic panels on the roof; and
16        (C) subscriptions to community renewable generation
17    projects, including community renewable generation
18    projects on the customer's side of the billing meter of a
19    host facility and partially used for the customer's own
20    load.
21    In addition, the nameplate capacity of the eligible
22renewable electric generating facility that serves the demand
23of the properties, units, or apartments identified in
24paragraphs (1) and (2) of this subsection (l) shall not exceed
255,000 kilowatts in nameplate capacity in total. Any eligible
26renewable electrical generating facility or community

 

 

SB3957- 255 -LRB103 40954 SPS 74001 b

1renewable generation project that is powered by photovoltaic
2electric energy and installed after the effective date of this
3amendatory Act of the 99th General Assembly must be installed
4by a qualified person in compliance with the requirements of
5Section 16-128A of the Public Utilities Act and any rules or
6regulations adopted thereunder.
7    (2) Notwithstanding anything to the contrary, an
8electricity provider shall provide credits for the electricity
9produced by the projects described in paragraph (1) of this
10subsection (l). The electricity provider shall provide credits
11that include at least energy supply, capacity, transmission,
12and, if applicable, the purchased energy adjustment on the
13subscriber's monthly bill equal to the subscriber's share of
14the production of electricity from the project, as determined
15by paragraph (3) of this subsection (l). For customers with
16transmission or capacity charges not charged on a
17kilowatt-hour basis, the electricity provider shall prepare a
18reasonable approximation of the kilowatt-hour equivalent value
19and provide that value as a monetary credit. The electricity
20provider shall submit these approximation methodologies to the
21Commission for review, modification, and approval.
22Notwithstanding anything to the contrary, customers on payment
23plans or participating in budget billing programs shall have
24credits applied on a monthly basis.
25    (3) Notwithstanding anything to the contrary and
26regardless of whether a subscriber to an eligible community

 

 

SB3957- 256 -LRB103 40954 SPS 74001 b

1renewable generation project receives power and energy service
2from the electric utility or an alternative retail electric
3supplier, for projects eligible under paragraph (C) of
4subparagraph (1) of this subsection (l), electric utilities
5serving more than 200,000 customers as of January 1, 2021
6shall provide the monetary credits to a subscriber's
7subsequent bill for the electricity produced by community
8renewable generation projects. The electric utility shall
9provide monetary credits to a subscriber's subsequent bill at
10the utility's total price to compare equal to the subscriber's
11share of the production of electricity from the project, as
12determined by paragraph (5) of this subsection (l). For the
13purposes of this subsection, "total price to compare" means
14the rate or rates published by the Illinois Commerce
15Commission for energy supply for eligible customers receiving
16supply service from the electric utility, and shall include
17energy, capacity, transmission, and the purchased energy
18adjustment. Notwithstanding anything to the contrary,
19customers on payment plans or participating in budget billing
20programs shall have credits applied on a monthly basis. Any
21applicable credit or reduction in load obligation from the
22production of the community renewable generating projects
23receiving a credit under this subsection shall be credited to
24the electric utility to offset the cost of providing the
25credit. To the extent that the credit or load obligation
26reduction does not completely offset the cost of providing the

 

 

SB3957- 257 -LRB103 40954 SPS 74001 b

1credit to subscribers of community renewable generation
2projects as described in this subsection, the electric utility
3may recover the remaining costs through its Multi-Year Rate
4Plan. All electric utilities serving 200,000 or fewer
5customers as of January 1, 2021 shall only provide the
6monetary credits to a subscriber's subsequent bill for the
7electricity produced by community renewable generation
8projects if the subscriber receives power and energy service
9from the electric utility. Alternative retail electric
10suppliers providing power and energy service to a subscriber
11located within the service territory of an electric utility
12not subject to Sections 16-108.18 and 16-118 shall provide the
13monetary credits to the subscriber's subsequent bill for the
14electricity produced by community renewable generation
15projects.
16    (4) If requested by the owner or operator of a community
17renewable generating project, an electric utility serving more
18than 200,000 customers as of January 1, 2021 shall enter into a
19net crediting agreement with the owner or operator to include
20a subscriber's subscription fee on the subscriber's monthly
21electric bill and provide the subscriber with a net credit
22equivalent to the total bill credit value for that generation
23period minus the subscription fee, provided the subscription
24fee is structured as a fixed percentage of bill credit value.
25The net crediting agreement shall set forth payment terms from
26the electric utility to the owner or operator of the community

 

 

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1renewable generating project, and the electric utility may
2charge a net crediting fee to the owner or operator of a
3community renewable generating project that may not exceed 1%
42% of the subscription fee bill credit value. Notwithstanding
5anything to the contrary, an electric utility serving 200,000
6customers or fewer as of January 1, 2021 shall not be obligated
7to enter into a net crediting agreement with the owner or
8operator of a community renewable generating project. For the
9purposes of this paragraph (4), "net crediting" means a
10program offered by an electric utility under which the
11electric utility, upon authorization by or on behalf of a
12subscriber, remits the cash value of the subscription fee to
13the owner or operator of the community renewable generation
14facility, without regard to whether or not the subscriber has
15paid the subscriber's monthly electric bill, and places the
16cash value of the remaining bill credit on the subscriber's
17bill. The utility shall use the same net crediting format for
18subscribers on payment plans or participating in budget
19billing programs.
20    (5) For the purposes of facilitating net metering, the
21owner or operator of the eligible renewable electrical
22generating facility or community renewable generation project
23shall be responsible for determining the amount of the credit
24that each customer or subscriber participating in a project
25under this subsection (l) is to receive in the following
26manner:

 

 

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1        (A) The owner or operator shall, on a monthly basis,
2    provide to the electric utility the kilowatthours of
3    generation attributable to each of the utility's retail
4    customers and subscribers participating in projects under
5    this subsection (l) in accordance with the customer's or
6    subscriber's share of the eligible renewable electric
7    generating facility's or community renewable generation
8    project's output of power and energy for such month. The
9    owner or operator shall electronically transmit such
10    calculations and associated documentation to the electric
11    utility, in a format or method set forth in the applicable
12    tariff, on a monthly basis so that the electric utility
13    can reflect the monetary credits on customers' and
14    subscribers' electric utility bills. The electric utility
15    shall be permitted to revise its tariffs to implement the
16    provisions of this amendatory Act of the 102nd General
17    Assembly. The owner or operator shall separately provide
18    the electric utility with the documentation detailing the
19    calculations supporting the credit in the manner set forth
20    in the applicable tariff.
21        (B) For those participating customers and subscribers
22    who receive their energy supply from an alternative retail
23    electric supplier, the electric utility shall remit to the
24    applicable alternative retail electric supplier the
25    information provided under subparagraph (A) of this
26    paragraph (3) for such customers and subscribers in a

 

 

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1    manner set forth in such alternative retail electric
2    supplier's net metering program, or as otherwise agreed
3    between the utility and the alternative retail electric
4    supplier. The alternative retail electric supplier shall
5    then submit to the utility the amount of the charges for
6    power and energy to be applied to such customers and
7    subscribers, including the amount of the credit associated
8    with net metering.
9        (C) A participating customer or subscriber may provide
10    authorization as required by applicable law that directs
11    the electric utility to submit information to the owner or
12    operator of the eligible renewable electrical generating
13    facility or community renewable generation project to
14    which the customer or subscriber has an ownership or
15    leasehold interest or a subscription. Such information
16    shall be limited to the components of the net metering
17    credit calculated under this subsection (l), including the
18    bill credit rate, total kilowatthours, and total monetary
19    credit value applied to the customer's or subscriber's
20    bill for the monthly billing period.
21    (l-5) Within 90 days after the effective date of this
22amendatory Act of the 102nd General Assembly, each electric
23utility subject to this Section shall file a tariff or tariffs
24to implement the provisions of subsection (l) of this Section,
25which shall, consistent with the provisions of subsection (l),
26describe the terms and conditions under which owners or

 

 

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1operators of qualifying properties, units, or apartments may
2participate in net metering. The Commission shall approve, or
3approve with modification, the tariff within 120 days after
4the effective date of this amendatory Act of the 102nd General
5Assembly.
6    (m) Nothing in this Section shall affect the right of an
7electricity provider to continue to provide, or the right of a
8retail customer to continue to receive service pursuant to a
9contract for electric service between the electricity provider
10and the retail customer in accordance with the prices, terms,
11and conditions provided for in that contract. Either the
12electricity provider or the customer may require compliance
13with the prices, terms, and conditions of the contract.
14    (n) On and after January 1, 2025, the net metering
15services described in subsections (d), (d-5), and (e) of this
16Section shall no longer be offered, except as to those
17eligible renewable electrical generating facilities for which
18retail customers are receiving net metering service under
19these subsections at the time the net metering services under
20those subsections are no longer offered; those systems shall
21continue to receive net metering services described in
22subsections (d), (d-5), and (e) of this Section for the
23lifetime of the system, regardless of if those retail
24customers change electricity providers or whether the retail
25customer benefiting from the system changes. The electric
26utility serving more than 200,000 customers as of January 1,

 

 

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12021 is responsible for ensuring the billing credits continue
2without lapse for the lifetime of systems, as required in
3subsection (o). Those retail customers that begin taking net
4metering service after the date that net metering services are
5no longer offered under such subsections shall be subject to
6the provisions set forth in the following paragraphs (1)
7through (3) of this subsection (n):
8        (1) An electricity provider shall charge or credit for
9    the net electricity supplied to eligible customers or
10    provided by eligible customers whose electric supply
11    service is not provided based on hourly pricing in the
12    following manner:
13            (A) If the amount of electricity used by the
14        customer during the monthly billing period exceeds the
15        amount of electricity produced by the customer, then
16        the electricity provider shall charge the customer for
17        the net kilowatt-hour based electricity charges
18        reflected in the customer's electric service rate
19        supplied to and used by the customer as provided in
20        paragraph (3) of this subsection (n).
21            (B) If the amount of electricity produced by a
22        customer during the monthly billing period exceeds the
23        amount of electricity used by the customer during that
24        billing period, then the electricity provider
25        supplying that customer shall apply a 1:1
26        kilowatt-hour energy or monetary credit kilowatt-hour

 

 

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1        supply charges to the customer's subsequent bill. The
2        customer shall choose between 1:1 kilowatt-hour or
3        monetary credit at the time of application. For the
4        purposes of this subsection, "kilowatt-hour supply
5        charges" means the kilowatt-hour equivalent values for
6        energy, capacity, transmission, and the purchased
7        energy adjustment, if applicable. Notwithstanding
8        anything to the contrary, customers on payment plans
9        or participating in budget billing programs shall have
10        credits applied on a monthly basis. The electricity
11        provider shall continue to carry over any excess
12        kilowatt-hour or monetary energy credits earned and
13        apply those credits to subsequent billing periods. For
14        customers with transmission or capacity charges not
15        charged on a kilowatt-hour basis, the electricity
16        provider shall prepare a reasonable approximation of
17        the kilowatt-hour equivalent value and provide that
18        value as a monetary credit. The electricity provider
19        shall submit these approximation methodologies to the
20        Commission for review, modification, and approval.
21            (C) (Blank).
22        (2) An electricity provider shall charge or credit for
23    the net electricity supplied to eligible customers or
24    provided by eligible customers whose electric supply
25    service is provided based on hourly pricing in the
26    following manner:

 

 

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1            (A) If the amount of electricity used by the
2        customer during any hourly period exceeds the amount
3        of electricity produced by the customer, then the
4        electricity provider shall charge the customer for the
5        net electricity supplied to and used by the customer
6        as provided in paragraph (3) of this subsection (n).
7            (B) If the amount of electricity produced by a
8        customer during any hourly period exceeds the amount
9        of electricity used by the customer during that hourly
10        period, the energy provider shall calculate an energy
11        credit for the net kilowatt-hours produced in such
12        period, and shall apply that credit as a monetary
13        credit to the customer's subsequent bill. The value of
14        the energy credit shall be calculated using the same
15        price per kilowatt-hour as the electric service
16        provider would charge for kilowatt-hour energy sales
17        during that same hourly period and shall also include
18        values for capacity and transmission. For customers
19        with transmission or capacity charges not charged on a
20        kilowatt-hour basis, the electricity provider shall
21        prepare a reasonable approximation of the
22        kilowatt-hour equivalent value and provide that value
23        as a monetary credit. The electricity provider shall
24        submit these approximation methodologies to the
25        Commission for review, modification, and approval.
26        Notwithstanding anything to the contrary, customers on

 

 

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1        payment plans or participating in budget billing
2        programs shall have credits applied on a monthly
3        basis.
4        (3) An electricity provider shall provide electric
5    service to eligible customers who utilize net metering at
6    non-discriminatory rates that are identical, with respect
7    to rate structure, retail rate components, and any monthly
8    charges, to the rates that the customer would be charged
9    if not a net metering customer. An electricity provider
10    shall charge the customer for the net electricity supplied
11    to and used by the customer according to the terms of the
12    contract or tariff to which the same customer would be
13    assigned or be eligible for if the customer was not a net
14    metering customer. An electricity provider shall not
15    charge net metering customers any fee or charge or require
16    additional equipment, insurance, or any other requirements
17    not specifically authorized by interconnection standards
18    authorized by the Commission, unless the fee, charge, or
19    other requirement would apply to other similarly situated
20    customers who are not net metering customers. The customer
21    remains responsible for the gross amount of delivery
22    services charges, supply-related charges that are kilowatt
23    based, and all taxes and fees related to such charges. The
24    customer also remains responsible for all taxes and fees
25    that would otherwise be applicable to the net amount of
26    electricity used by the customer. Paragraphs (1) and (2)

 

 

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1    of this subsection (n) shall not be construed to prevent
2    an arms-length agreement between an electricity provider
3    and an eligible customer that sets forth different prices,
4    terms, and conditions for the provision of net metering
5    service, including, but not limited to, the provision of
6    the appropriate metering equipment for non-residential
7    customers. Nothing in this paragraph (3) shall be
8    interpreted to mandate that a utility that is only
9    required to provide delivery services to a given customer
10    must also sell electricity to such customer.
11    (o) Within 90 days after the effective date of this
12amendatory Act of the 102nd General Assembly, each electric
13utility subject to this Section shall file a tariff, which
14shall, consistent with the provisions of this Section, propose
15the terms and conditions under which a customer may
16participate in net metering. The tariff for electric utilities
17serving more than 200,000 customers as of January 1, 2021
18shall also provide a streamlined and transparent bill
19crediting system for net metering to be managed by the
20electric utilities. The terms and conditions shall include,
21but are not limited to, that an electric utility shall manage
22and maintain billing of net metering credits and charges
23regardless of if the eligible customer takes net metering
24under an electric utility or alternative retail electric
25supplier. The electric utility serving more than 200,000
26customers as of January 1, 2021 shall process and approve all

 

 

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1net metering applications, even if an eligible customer is
2served by an alternative retail electric supplier; and the
3utility shall forward application approval to the appropriate
4alternative retail electric supplier. Eligibility for net
5metering shall remain with the owner of the utility billing
6address such that, if an eligible renewable electrical
7generating facility changes ownership, the net metering
8eligibility transfers to the new owner. The electric utility
9serving more than 200,000 customers as of January 1, 2021
10shall manage net metering billing for eligible customers to
11ensure full crediting occurs on electricity bills, including,
12but not limited to, ensuring net metering crediting begins
13upon commercial operation date, net metering billing transfers
14immediately if an eligible customer switches from an electric
15utility to alternative retail electric supplier or vice versa,
16and net metering billing transfers between ownership of a
17valid billing address. All transfers referenced in the
18preceding sentence shall include transfer of all banked
19credits. All electric utilities serving 200,000 or fewer
20customers as of January 1, 2021 shall manage net metering
21billing for eligible customers receiving power and energy
22service from the electric utility to ensure full crediting
23occurs on electricity bills, ensuring net metering crediting
24begins upon commercial operation date, net metering billing
25transfers immediately if an eligible customer switches from an
26electric utility to alternative retail electric supplier or

 

 

SB3957- 268 -LRB103 40954 SPS 74001 b

1vice versa, and net metering billing transfers between
2ownership of a valid billing address. Alternative retail
3electric suppliers providing power and energy service to
4eligible customers located within the service territory of an
5electric utility serving 200,000 or fewer customers as of
6January 1, 2021 shall manage net metering billing for eligible
7customers to ensure full crediting occurs on electricity
8bills, including, but not limited to, ensuring net metering
9crediting begins upon commercial operation date, net metering
10billing transfers immediately if an eligible customer switches
11from an electric utility to alternative retail electric
12supplier or vice versa, and net metering billing transfers
13between ownership of a valid billing address.
14(Source: P.A. 102-662, eff. 9-15-21.)
 
15    (220 ILCS 5/16-107.6)
16    Sec. 16-107.6. Distributed generation rebate.
17    (a) In this Section:
18    "Additive services" means the services that distributed
19energy resources provide to the energy system and society that
20are not (1) already included in the base rebates for
21system-wide grid services; or (2) otherwise already
22compensated. Additive services may reflect, but shall not be
23limited to, any geographic, time-based, performance-based, and
24other benefits of distributed energy resources, as well as the
25present and future technological capabilities of distributed

 

 

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1energy resources and present and future grid needs.
2    "Distributed energy resource" means a wide range of
3technologies that are located on the customer side of the
4customer's electric meter, including, but not limited to,
5distributed generation, energy storage, electric vehicles, and
6demand response technologies.
7    "Energy storage system" means commercially available
8technology that is capable of absorbing energy and storing it
9for a period of time for use at a later time, including, but
10not limited to, electrochemical, thermal, and
11electromechanical technologies, and may be interconnected
12behind the customer's meter or interconnected behind its own
13meter.
14    "Smart inverter" means a device that converts direct
15current into alternating current and meets the IEEE 1547-2018
16equipment standards. Until devices that meet the IEEE
171547-2018 standard are available, devices that meet the UL
181741 SA standard are acceptable.
19    "Subscriber" has the meaning set forth in Section 1-10 of
20the Illinois Power Agency Act.
21    "Subscription" has the meaning set forth in Section 1-10
22of the Illinois Power Agency Act.
23    "System-wide grid services" means the benefits that a
24distributed energy resource provides to the distribution grid
25for a period of no less than 25 years. System-wide grid
26services do not vary by location, time, or the performance

 

 

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1characteristics of the distributed energy resource.
2System-wide grid services include, but are not limited to,
3avoided or deferred distribution capacity costs, resilience
4and reliability benefits, avoided or deferred distribution
5operation and maintenance costs, distribution voltage and
6power quality benefits, and line loss reductions.
7    "Threshold date" means December 31, 2024 or the date on
8which the utility's tariff or tariffs setting the new
9compensation values established under subsection (e) take
10effect, whichever is later.
11    (b) An electric utility that serves more than 200,000
12customers in the State shall file a petition with the
13Commission requesting approval of the utility's tariff to
14provide a rebate to the owner or operator of distributed
15generation, including third-party owned systems, that meets
16the following criteria:
17        (1) has a nameplate generating capacity no greater
18    than 5,000 kilowatts and is primarily used to offset a
19    customer's electricity load;
20        (2) is located on the customer's side of the billing
21    meter and for the customer's own use;
22        (3) is interconnected to electric distribution
23    facilities owned by the electric utility under rules
24    adopted by the Commission by means of the inverter or
25    smart inverter required by this Section, as applicable.
26    For purposes of this Section, "distributed generation"

 

 

SB3957- 271 -LRB103 40954 SPS 74001 b

1shall satisfy the definition of distributed renewable energy
2generation device set forth in Section 1-10 of the Illinois
3Power Agency Act to the extent such definition is consistent
4with the requirements of this Section.
5    In addition, any new photovoltaic distributed generation
6that is installed after June 1, 2017 (the effective date of
7Public Act 99-906) must be installed by a qualified person, as
8defined by subsection (i) of Section 1-56 of the Illinois
9Power Agency Act.
10    The tariff shall include a base rebate that compensates
11distributed generation for the system-wide grid services
12associated with distributed generation and, after the
13proceeding described in subsection (e) of this Section, an
14additional payment or payments for the additive services. The
15tariff shall provide that the smart inverter associated with
16the distributed generation shall provide autonomous response
17to grid conditions through its default settings as approved by
18the Commission. Default settings may not be changed after the
19execution of the interconnection agreement except by mutual
20agreement between the utility and the owner or operator of the
21distributed generation. Nothing in this Section shall negate
22or supersede Institute of Electrical and Electronics Engineers
23equipment standards or other similar standards or
24requirements. The tariff shall not limit the ability of the
25smart inverter or other distributed energy resource to provide
26wholesale market products such as regulation, demand response,

 

 

SB3957- 272 -LRB103 40954 SPS 74001 b

1or other services, or limit the ability of the owner of the
2smart inverter or the other distributed energy resource to
3receive compensation for providing those wholesale market
4products or services.
5    (b-5) Within 30 days after the effective date of this
6amendatory Act of the 102nd General Assembly, each electric
7public utility with 3,000,000 or more retail customers shall
8file a tariff with the Commission that further compensates any
9retail customer that installs or has installed photovoltaic
10facilities paired with energy storage facilities on or
11adjacent to its premises for the benefits the facilities
12provide to the distribution grid. The tariff shall provide
13that, in addition to the other rebates identified in this
14Section, the electric utility shall rebate to such retail
15customer (i) the previously incurred and future costs of
16installing interconnection facilities and related
17infrastructure to enable full participation in the PJM
18Interconnection, LLC or its successor organization frequency
19regulation market; and (ii) all wholesale demand charges
20incurred after the effective date of this amendatory Act of
21the 102nd General Assembly. The Commission shall approve, or
22approve with modification, the tariff within 120 days after
23the utility's filing.
24    (c) The proposed tariff authorized by subsection (b) of
25this Section shall include the following participation terms
26for rebates to be applied under this Section for distributed

 

 

SB3957- 273 -LRB103 40954 SPS 74001 b

1generation that satisfies the criteria set forth in subsection
2(b) of this Section:
3        (1) The owner or operator of distributed generation
4    that services customers not eligible for net metering
5    under subsection (d), (d-5), or (e) of Section 16-107.5 of
6    this Act may apply for a rebate as provided for in this
7    Section. Until the threshold date, the value of the rebate
8    shall be $250 per kilowatt of nameplate generating
9    capacity, measured as nominal DC power output, of that
10    customer's distributed generation. To the extent the
11    distributed generation also has an associated energy
12    storage, then the energy storage system shall be
13    separately compensated with a base rebate of $250 per
14    kilowatt-hour of nameplate capacity. Any distributed
15    generation device that is compensated for storage in this
16    subsection (1) before the threshold date shall participate
17    in one or more programs determined through the Multi-Year
18    Integrated Grid Planning process that are designed to meet
19    peak reduction and flexibility, the virtual power plant
20    program described in Section 16-107.9, or the peak
21    remediation program described in Section 16-107.10. After
22    the threshold date, the value of the base rebate and
23    additional compensation for any additive services shall be
24    as determined by the Commission in the proceeding
25    described in subsection (e) of this Section, provided that
26    the value of the base rebate for system-wide grid services

 

 

SB3957- 274 -LRB103 40954 SPS 74001 b

1    shall not be lower than $250 per kilowatt of nameplate
2    generating capacity of distributed generation or community
3    renewable generation project.
4        (2) The owner or operator of distributed generation
5    that, before the threshold date, would have been eligible
6    for net metering under subsection (d), (d-5), or (e) of
7    Section 16-107.5 of this Act and that has not previously
8    received a distributed generation rebate, may apply for a
9    rebate as provided for in this Section. Until the
10    threshold date, the value of the base rebate shall be $300
11    per kilowatt of nameplate generating capacity, measured as
12    nominal DC power output, of the distributed generation.
13    The owner or operator of distributed generation that,
14    before the threshold date, is eligible for net metering
15    under subsection (d), (d-5), or (e) of Section 16-107.5 of
16    this Act may apply for a base rebate for an energy storage
17    device that uses the same smart inverter as the
18    distributed generation, regardless of whether the
19    distributed generation applies for a rebate for the
20    distributed generation device. The energy storage system
21    shall be separately compensated at a base payment of $300
22    per kilowatt-hour of nameplate capacity. Any distributed
23    generation device that is compensated for storage in this
24    subsection (2) before the threshold date shall participate
25    in the virtual power plant program described in Section
26    16-107.9, or at least one demand response a peak time

 

 

SB3957- 275 -LRB103 40954 SPS 74001 b

1    rebate program, hourly pricing program, or time-of-use
2    rate program that is offered by the applicable electric
3    utility, an alternative retail electric supplier, or an
4    entity qualified to offer demand response that is not an
5    alternative retail electric supplier. After the threshold
6    date, the value of the base rebate and additional
7    compensation for any additive services shall be as
8    determined by the Commission in the proceeding described
9    in subsection (e) of this Section, provided that, prior to
10    December 31, 2029, the value of the base rebate for
11    system-wide services shall not be lower than $300 per
12    kilowatt of nameplate generating capacity of distributed
13    generation, after which it shall not be lower than $250
14    per kilowatt of nameplate capacity.
15        (3) Upon approval of a rebate application submitted
16    under this subsection (c), the retail customer shall no
17    longer be entitled to receive any delivery service credits
18    for the excess electricity generated by its facility and
19    shall be subject to the provisions of subsection (n) of
20    Section 16-107.5 of this Act unless the owner or operator
21    receives a rebate only for an energy storage device and
22    not for the distributed generation device.
23        (4) To be eligible for a rebate described in this
24    subsection (c), the owner or operator of the distributed
25    generation must have a smart inverter installed and in
26    operation on the distributed generation.

 

 

SB3957- 276 -LRB103 40954 SPS 74001 b

1    (d) The Commission shall review the proposed tariff
2authorized by subsection (b) of this Section and may make
3changes to the tariff that are consistent with this Section
4and with the Commission's authority under Article IX of this
5Act, subject to notice and hearing. Following notice and
6hearing, the Commission shall issue an order approving, or
7approving with modification, such tariff no later than 240
8days after the utility files its tariff. Upon the effective
9date of this amendatory Act of the 102nd General Assembly, an
10electric utility shall file a petition with the Commission to
11amend and update any existing tariffs to comply with
12subsections (b) and (c).
13    (e) By no later than June 30, 2023, the Commission shall
14open an independent, statewide investigation into the value
15of, and compensation for, distributed energy resources. The
16Commission shall conduct the investigation, but may arrange
17for experts or consultants independent of the utilities and
18selected by the Commission to assist with the investigation.
19The cost of the investigation shall be shared by the utilities
20filing tariffs under subsection (b) of this Section but may be
21recovered as an expense through normal ratemaking procedures.
22        (1) The Commission shall ensure that the investigation
23    includes, at minimum, diverse sets of stakeholders; a
24    review of best practices in calculating the value of
25    distributed energy resource benefits; a review of the full
26    value of the distributed energy resources and the manner

 

 

SB3957- 277 -LRB103 40954 SPS 74001 b

1    in which each component of that value is or is not
2    otherwise compensated; and assessments of how the value of
3    distributed energy resources may evolve based on the
4    present and future technological capabilities of
5    distributed energy resources and based on present and
6    future grid needs.
7        (2) The Commission's final order concluding this
8    investigation shall establish an annual process and
9    formula for the compensation of distributed generation and
10    energy storage systems, and an initial set of inputs for
11    that formula. The Commission's final order concluding this
12    investigation shall establish base rebates that compensate
13    distributed generation, community renewable generation
14    projects and energy storage systems for the system-wide
15    grid services that they provide. Those base rebate values
16    shall be consistent across the state, and shall not vary
17    by customer, customer class, customer location, or any
18    other variable. With respect to rebates for distributed
19    generation or community renewable generation projects,
20    that rebate shall not be lower than $250 per kilowatt of
21    nameplate generating capacity of the distributed
22    generation or community renewable generation project. The
23    Commission's final order concluding this proceeding shall
24    also direct the utilities to update the formula, on an
25    annual basis, with inputs derived from their integrated
26    grid plans developed pursuant to Section 16-105.17. The

 

 

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1    base rebate shall be updated annually based on the annual
2    updates to the formula inputs, but, with respect to
3    rebates for distributed generation or community renewable
4    generation projects, shall be no lower than $250 per
5    kilowatt of nameplate generating capacity of the
6    distributed generation or community renewable generation
7    project.
8        (3) The Commission shall also determine, as a part of
9    its investigation under this subsection, whether
10    distributed energy resources can provide any additive
11    services. Those additive services may include services
12    that are provided through utility-controlled responses to
13    grid conditions. If the Commission determines that
14    distributed energy resources can provide additive grid
15    services, the Commission shall determine the terms and
16    conditions for the operation and compensation of those
17    services. That compensation shall be above and beyond the
18    base rebate that the distributed energy generation,
19    community renewable generation project and energy storage
20    system receives. Compensation for additive services may
21    vary by location, time, performance characteristics,
22    technology types, or other variables.
23        (4) The Commission shall ensure that compensation for
24    distributed energy resources, including base rebates and
25    any payments for additive services, shall reflect all
26    reasonably known and measurable values of the distributed

 

 

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1    generation over its full expected useful life.
2    Compensation for additive services shall reflect, but
3    shall not be limited to, any geographic, time-based,
4    performance-based, and other benefits of distributed
5    generation, as well as the present and future
6    technological capabilities of distributed energy resources
7    and present and future grid needs.
8        (5) The Commission shall consider the electric
9    utility's integrated grid plan developed pursuant to
10    Section 16-105.17 of this Act to help identify the value
11    of distributed energy resources for the purpose of
12    calculating the compensation described in this subsection.
13        (6) The Commission shall determine additional
14    compensation for distributed energy resources that creates
15    savings and value on the distribution system by being
16    co-located or in close proximity to electric vehicle
17    charging infrastructure in use by medium-duty and
18    heavy-duty vehicles, primarily serving environmental
19    justice communities, as outlined in the utility integrated
20    grid planning process under Section 16-105.17 of this Act.
21    No later than 60 days after the Commission enters its
22final order under this subsection (e), each utility shall file
23its updated tariff or tariffs in compliance with the order,
24including new tariffs for the recovery of costs incurred under
25this subsection (e) that shall provide for volumetric-based
26cost recovery, and the Commission shall approve, or approve

 

 

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1with modification, the tariff or tariffs within 240 days after
2the utility's filing.
3    (f) Notwithstanding any provision of this Act to the
4contrary, the owner or operator of a community renewable
5generation project as defined in Section 1-10 of the Illinois
6Power Agency Act shall also be eligible to apply for the rebate
7described in this Section. The owner or operator of the
8community renewable generation project may apply for a rebate
9only if the owner or operator, or previous owner or operator,
10of the community renewable generation project has not already
11submitted an application, and, regardless of whether the
12subscriber is a residential or non-residential customer, may
13be allowed the amount identified in paragraph (1) of
14subsection (c) applicable on the date that the application is
15submitted.
16    (g) The owner of the distributed generation or community
17renewable generation project may apply for the rebate or
18rebates approved under this Section at the time of execution
19of an interconnection agreement with the distribution utility
20and shall receive the value available at that time of
21execution of the interconnection agreement, provided the
22project reaches mechanical completion within 24 months after
23execution of the interconnection agreement. If the project has
24not reached mechanical completion within 24 months after
25execution, the owner may reapply for the rebate or rebates
26approved under this Section available at the time of

 

 

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1application and shall receive the value available at the time
2of application. The utility shall issue the rebate no later
3than 60 days after the project is energized. In the event the
4application is incomplete or the utility is otherwise unable
5to calculate the payment based on the information provided by
6the owner, the utility shall issue the payment no later than 60
7days after the application is complete or all requested
8information is received.
9    (h) An electric utility shall recover from its retail
10customers all of the costs of the rebates made under a tariff
11or tariffs approved under subsection (d) of this Section,
12including, but not limited to, the value of the rebates and all
13costs incurred by the utility to comply with and implement
14subsections (b) and (c) of this Section, but not including
15costs incurred by the utility to comply with and implement
16subsection (e) of this Section, consistent with the following
17provisions:
18        (1) The utility shall defer the full amount of its
19    costs as a regulatory asset. The total costs deferred as a
20    regulatory asset shall be amortized over a 15-year period.
21    The unamortized balance shall be recognized as of December
22    31 for a given year. The utility shall also earn a return
23    on the total of the unamortized balance of the regulatory
24    assets, less any deferred taxes related to the unamortized
25    balance, at an annual rate equal to the utility's weighted
26    average cost of capital that includes, based on a year-end

 

 

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1    capital structure, the utility's actual cost of debt for
2    the applicable calendar year and a cost of equity, which
3    shall be calculated as the sum of (i) the average for the
4    applicable calendar year of the monthly average yields of
5    30-year U.S. Treasury bonds published by the Board of
6    Governors of the Federal Reserve System in its weekly H.15
7    Statistical Release or successor publication; and (ii) 580
8    basis points, including a revenue conversion factor
9    calculated to recover or refund all additional income
10    taxes that may be payable or receivable as a result of that
11    return.
12        When an electric utility creates a regulatory asset
13    under the provisions of this paragraph (1) of subsection
14    (h), the costs are recovered over a period during which
15    customers also receive a benefit, which is in the public
16    interest. Accordingly, it is the intent of the General
17    Assembly that an electric utility that elects to create a
18    regulatory asset under the provisions of this paragraph
19    (1) shall recover all of the associated costs, including,
20    but not limited to, its cost of capital as set forth in
21    this paragraph (1). After the Commission has approved the
22    prudence and reasonableness of the costs that comprise the
23    regulatory asset, the electric utility shall be permitted
24    to recover all such costs, and the value and
25    recoverability through rates of the associated regulatory
26    asset shall not be limited, altered, impaired, or reduced.

 

 

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1    To enable the financing of the incremental capital
2    expenditures, including regulatory assets, for electric
3    utilities that serve less than 3,000,000 retail customers
4    but more than 500,000 retail customers in the State, the
5    utility's actual year-end capital structure that includes
6    a common equity ratio, excluding goodwill, of up to and
7    including 50% of the total capital structure shall be
8    deemed reasonable and used to set rates.
9        (2) The utility, at its election, may recover all of
10    the costs as part of a filing for a general increase in
11    rates under Article IX of this Act, as part of an annual
12    filing to update a performance-based formula rate under
13    subsection (d) of Section 16-108.5 of this Act, or through
14    an automatic adjustment clause tariff, provided that
15    nothing in this paragraph (2) permits the double recovery
16    of such costs from customers. If the utility elects to
17    recover the costs it incurs under subsections (b) and (c)
18    through an automatic adjustment clause tariff, the utility
19    may file its proposed tariff together with the tariff it
20    files under subsection (b) of this Section or at a later
21    time. The proposed tariff shall provide for an annual
22    reconciliation, less any deferred taxes related to the
23    reconciliation, with interest at an annual rate of return
24    equal to the utility's weighted average cost of capital as
25    calculated under paragraph (1) of this subsection (h),
26    including a revenue conversion factor calculated to

 

 

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1    recover or refund all additional income taxes that may be
2    payable or receivable as a result of that return, of the
3    revenue requirement reflected in rates for each calendar
4    year, beginning with the calendar year in which the
5    utility files its automatic adjustment clause tariff under
6    this subsection (h), with what the revenue requirement
7    would have been had the actual cost information for the
8    applicable calendar year been available at the filing
9    date. The Commission shall review the proposed tariff and
10    may make changes to the tariff that are consistent with
11    this Section and with the Commission's authority under
12    Article IX of this Act, subject to notice and hearing.
13    Following notice and hearing, the Commission shall issue
14    an order approving, or approving with modification, such
15    tariff no later than 240 days after the utility files its
16    tariff.
17    (i) An electric utility shall recover from its retail
18customers, on a volumetric basis, all of the costs of the
19rebates made under a tariff or tariffs placed into effect
20under subsection (e) of this Section, including, but not
21limited to, the value of the rebates and all costs incurred by
22the utility to comply with and implement subsection (e) of
23this Section, consistent with the following provisions:
24        (1) The utility may defer a portion of its costs as a
25    regulatory asset. The Commission shall determine the
26    portion that may be appropriately deferred as a regulatory

 

 

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1    asset. Factors that the Commission shall consider in
2    determining the portion of costs that shall be deferred as
3    a regulatory asset include, but are not limited to: (i)
4    whether and the extent to which a cost effectively
5    deferred or avoided other distribution system operating
6    costs or capital expenditures; (ii) the extent to which a
7    cost provides environmental benefits; (iii) the extent to
8    which a cost improves system reliability or resilience;
9    (iv) the electric utility's distribution system plan
10    developed pursuant to Section 16-105.17 of this Act; (v)
11    the extent to which a cost advances equity principles; and
12    (vi) such other factors as the Commission deems
13    appropriate. The remainder of costs shall be deemed an
14    operating expense and shall be recoverable if found
15    prudent and reasonable by the Commission.
16        The total costs deferred as a regulatory asset shall
17    be amortized over a 15-year period. The unamortized
18    balance shall be recognized as of December 31 for a given
19    year. The utility shall also earn a return on the total of
20    the unamortized balance of the regulatory assets, less any
21    deferred taxes related to the unamortized balance, at an
22    annual rate equal to the utility's weighted average cost
23    of capital that includes, based on a year-end capital
24    structure, the utility's actual cost of debt for the
25    applicable calendar year and a cost of equity, which shall
26    be calculated as the sum of: (I) the average for the

 

 

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1    applicable calendar year of the monthly average yields of
2    30-year U.S. Treasury bonds published by the Board of
3    Governors of the Federal Reserve System in its weekly H.15
4    Statistical Release or successor publication; and (II) 580
5    basis points, including a revenue conversion factor
6    calculated to recover or refund all additional income
7    taxes that may be payable or receivable as a result of that
8    return.
9        (2) The utility may recover all of the costs through
10    an automatic adjustment clause tariff, on a volumetric
11    basis. The utility may file its proposed cost-recovery
12    tariff together with the tariff it files under subsection
13    (e) of this Section or at a later time. The proposed tariff
14    shall provide for an annual reconciliation, less any
15    deferred taxes related to the reconciliation, with
16    interest at an annual rate of return equal to the
17    utility's weighted average cost of capital as calculated
18    under paragraph (1) of this subsection (i), including a
19    revenue conversion factor calculated to recover or refund
20    all additional income taxes that may be payable or
21    receivable as a result of that return, of the revenue
22    requirement reflected in rates for each calendar year,
23    beginning with the calendar year in which the utility
24    files its automatic adjustment clause tariff under this
25    subsection (i), with what the revenue requirement would
26    have been had the actual cost information for the

 

 

SB3957- 287 -LRB103 40954 SPS 74001 b

1    applicable calendar year been available at the filing
2    date. The Commission shall review the proposed tariff and
3    may make changes to the tariff that are consistent with
4    this Section and with the Commission's authority under
5    Article IX of this Act, subject to notice and hearing.
6    Following notice and hearing, the Commission shall issue
7    an order approving, or approving with modification, such
8    tariff no later than 240 days after the utility files its
9    tariff.
10    (j) No later than 90 days after the Commission enters an
11order, or order on rehearing, whichever is later, approving an
12electric utility's proposed tariff under this Section, the
13electric utility shall provide notice of the availability of
14rebates under this Section.
15(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
 
16    (220 ILCS 5/16-107.9 new)
17    Sec. 16-107.9. Virtual power plant program.
18    (a) In this Section:
19    "Aggregator" means a party, other than the electric
20utility or its affiliate, that (i) represents and aggregates
21the load of participating customers who collectively have the
22ability to deploy 100 kilowatts or more of deployment of
23eligible devices and (ii) is responsible for performance of
24the aggregation in the program.
25    "Distributed energy resources management system" or

 

 

SB3957- 288 -LRB103 40954 SPS 74001 b

1"DERMS" means a platform that may be used by distribution
2system operators or utilities to integrate grid resources such
3as distributed energy resources into system operations.
4    "Distributed renewable energy generation device" has the
5meaning set forth in Section 1-10 of the Illinois Power Agency
6Act.
7    "Eligible devices" means a distributed renewable energy
8device paired with one or more energy storage systems.
9    "Energy storage system" has the meaning set forth in
10subsection (a) of Section 16-107.6.
11    "Participating customer" means a retail customer as
12defined in Section 16-102 with one or more eligible devices,
13including a community renewable generation project.
14    "Smart inverter" has the meaning set forth in subsection
15(a) of Section 16-107.6.
16    (b) The General Assembly finds that when eligible devices
17commit to deployment at times of stress on the grid and in
18wholesale energy markets, the actual deployment benefits all
19customers of the utility with enhanced reliability and
20protection from wholesale price increases and that those
21socialized goods should be encouraged and compensated.
22    (c) Within 60 days after the effective date of this
23amendatory Act of the 103rd General Assembly, each electric
24utility serving more than 300,000 customers as of January 1,
252023, shall propose an initial tariff. The initial tariff
26shall be consistent with the following:

 

 

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1        (1) Each request by the utility for an aggregator or
2    participating customer to deploy eligible devices to the
3    level identified in advance by the aggregator or
4    participating customer shall be an event.
5        (2) In exchange for an aggregator facilitating the
6    dispatch of eligible systems during hours identified by
7    the utility under this tariff or a participating customer
8    not using an aggregator dispatching, with each time period
9    being an event, not to exceed 60 hours in a calendar year
10    and not to exceed 2 consecutive hours, the utility shall,
11    at the end of each delivery year during which an
12    aggregator participates, compensate the aggregator in an
13    amount per kilowatt multiplied by the average number of
14    kilowatts discharged during events in a delivery year by
15    those eligible systems enrolled with the aggregator, with
16    the amount per kilowatt to be determined by the
17    Commission. Discharge shall be measured by the total power
18    and energy measured by the inverter of the eligible device
19    and shall not distinguish between power and energy from
20    the distributed renewable energy generation device or the
21    energy storage system. In determining the value of the
22    performance payment, the Commission shall, at minimum,
23    consider the benefits to the utility and ratepayers of
24    peak remediation, reduced capacity and transmission
25    allocations to the applicable regional transmission
26    organization zone, and a reasonable estimation of the

 

 

SB3957- 290 -LRB103 40954 SPS 74001 b

1    value of reduced transmission investment and other grid
2    services not compensated by tariffs authorized under
3    Section 16-107.6. The value shall be set to encourage
4    robust participation and shall be for a term of no less
5    than 5 years. At no time shall the compensation per
6    average kilowatt of demand reduction delivered be less
7    than $250.
8        (3) An aggregator or participating customer applying
9    individually must represent that it has identified for
10    participation one or more eligible devices with an
11    aggregate export capacity of at least 100 kilowatts or any
12    greater amount. Nothing in the tariff shall require a
13    particular participating customer using an aggregator
14    deploy at any particular time.
15        (4) The utility shall not send or receive signals
16    directly to or from any participating customer represented
17    by an aggregator for an event under the virtual power
18    plant program described in this Section.
19        (5) The aggregator may have capabilities to receive
20    dispatch signals from utilities or utility-contracted
21    DERMS providers through communication protocols, such as
22    IEEE 2030.5 or OpenADR, or through other protocols as the
23    Commission may approve. To facilitate adoption and
24    participation, the utility must also provide dispatch
25    signals in the form of an email or mutually agreeable
26    implementation.

 

 

SB3957- 291 -LRB103 40954 SPS 74001 b

1        (6) Notwithstanding anything to the contrary, nothing
2    prohibits a participating customer from simultaneously
3    being a participating customer and taking service under
4    tariffs authorized by Section 16-107.5 or 16-107.6.
5        (7) A participating customer may enroll in the virtual
6    power plant program directly if eligible or through an
7    aggregator for one or more years, and the electric utility
8    shall not set a minimum or maximum length of participation
9    for an eligible system represented by an aggregator. The
10    utility shall not limit the number of participating
11    customers nor shall any customer be prohibited from
12    participating due to its rate class.
13        (8) The electric utility may include reasonable
14    requirements for participation consistent with this
15    subsection except that the utility may not require
16    collateral from a participating customer or an aggregator
17    and neither the utility nor entities with which the
18    utility shares a common parent may be an aggregator. In no
19    event may the electric utility call an event with less
20    than 24 hours' prior notice and in no event may one or more
21    events on a single calendar day total more than 2 hours.
22    The electric utility shall not penalize a participating
23    customer or aggregator for a participating customer
24    exporting during an event and the electric utility shall
25    not require preapproval for customer export during an
26    event.

 

 

SB3957- 292 -LRB103 40954 SPS 74001 b

1        (9) The utility shall recover the costs of the virtual
2    power plant program through delivery rates, including
3    delivery rates authorized by the Multi-Year Rate Plan.
4    (d) The Commission shall approve, or approve with
5modifications, the tariff filed by each utility pursuant to
6subsection (c) within 240 days after its filing by the
7utility. At any time, the utility may propose revisions to the
8initial tariff or any revisions thereto, and the Commission
9shall approve such revisions if, in addition to requirements
10under Article IX, such revisions are consistent with the
11requirements of this Section.
12    (e) Not more than 6 months after 2 full delivery years of
13operation of the tariffs authorized in this Section, the
14Commission shall issue a report to the General Assembly
15assessing the value and efficacy of the virtual power plant
16program, including proposals for expansions or modifications.
17    (f) Nothing in the virtual power plant program shall
18either prevent the participating customer from participating,
19directly or through a third-party aggregator, in any other
20program, including any program required or authorized by
21Section 16-107.5 or 16-107.6, or impair the entitlement of any
22participating customer to benefits authorized to the
23participating customer by Section 16-107.5.
24    (g) The Commission may consider providing compensation to
25aggregators or participating customers not using an aggregator
26to the extent that the aggregators' participating customers or

 

 

SB3957- 293 -LRB103 40954 SPS 74001 b

1participating customers not using an aggregator are located in
2equity investment eligible communities, as that term is
3defined in Section 1-10 of the Illinois Power Agency Act.
4    (h) The tariffs approved by the Commission shall not
5reflect any additional charges, fees, or insurance
6requirements imposed on those owning or operating distributed
7renewable energy generation devices, distributed energy
8resources, or energy storage systems beyond those imposed on
9similarly situated customers that do not own or operate these
10resources.
11    (i) If a utility issuing a tariff under this Section
12conducts measurement and verification prescribed by the
13Commission, notwithstanding anything to the contrary all
14discharge from distributed renewable generation devices taking
15service under the tariff shall be counted toward the utility's
16peak load reduction performance metric authorized by item (ii)
17of subparagraph (A) of paragraph (2) of subsection (e) of
18Section 16-108.18. The Commission shall not require an
19eligible system to participate in any capacity or demand
20response markets or programs as a condition of the load
21reduction attributable to participating systems to count
22toward the utility's peak load reduction performance metric.
 
23    (220 ILCS 5/16-107.10 new)
24    Sec. 16-107.10. Peak remediation program.
25    (a) In this Section:

 

 

SB3957- 294 -LRB103 40954 SPS 74001 b

1    "Community renewable generation project" has the meaning
2set forth in Section 1-10 of the Illinois Power Agency Act.
3    "Defined discharge hours" means the defined hours in the
4initial tariff or subsequent tariffs that an eligible device
5is eligible to receive a peak discharge payment per
6kilowatt-hour of energy discharged.
7    "Eligible device" means a community renewable generation
8project paired with one or more energy storage systems.
9    "Energy storage system" has the meaning set forth in
10subsection (a) of Section 16-107.6.
11    "Nameplate capacity" has the meaning set forth in Section
121-10 of the Illinois Power Agency Act.
13    "Peak discharge payment" means a price per kilowatt-hour
14paid for energy discharged from an eligible device during the
15defined discharge hours.
16    "Threshold date" has the meaning set forth in subsection
17(a) of Section 16-107.6.
18    (b) The General Assembly finds that the electric grid sees
19high demand for electricity but fewer renewable resources
20available to meet that high demand. The General Assembly
21further finds that all ratepayers benefit from deployment of
22energy storage in a way that alleviates stress on the grid and
23reduces the costs for ratepayers frequently allocated during
24those peak hours.
25    (c) Within 90 days after the effective date of this
26amendatory Act of the 103rd General Assembly, each electric

 

 

SB3957- 295 -LRB103 40954 SPS 74001 b

1utility serving more than 300,000 retail customers as of
2January 1, 2023 shall propose an initial tariff. The initial
3tariff shall be consistent with the following:
4        (1) The utility shall compensate eligible devices with
5    a nameplate capacity of at least 100 kilowatts but no more
6    than 5,000 kilowatts for discharging into the grid during
7    defined discharge hours.
8        (2) The defined discharge hours shall be the hours of
9    4 p.m. through 8 p.m. on days during the months of June,
10    July, August, and September.
11        (3) In exchange for generating and providing through
12    its meter to the utility's distribution system at least 50
13    kilowatts during defined discharge hours, the utility
14    shall compensate the owner or operator of the eligible
15    device or a third party designated by the owner or
16    operator of the eligible device a peak discharge payment
17    in an amount to be determined by the Commission in
18    proportion to the average discharge during the hours
19    according to a predefined per kilowatt average discharge
20    payment. Discharge shall be measured by the total power
21    and energy measured by the inverter of the eligible device
22    and shall not distinguish between power and energy from
23    the distributed renewable energy generation device or the
24    energy storage system.
25        (4) In determining the value of the peak discharge
26    payment for each participating utility, the Commission

 

 

SB3957- 296 -LRB103 40954 SPS 74001 b

1    shall, at minimum, consider the benefits to the utility
2    and ratepayers of peak remediation, reduced capacity, and
3    transmission allocations to the applicable regional
4    transmission organization zone, and a reasonable
5    estimation of the value of reduced transmission investment
6    and other grid services not compensated by tariffs
7    authorized under Section 16-107.6. The value shall be set
8    to encourage robust participation and shall be for a term
9    of no less than 15 years. The utility shall not limit the
10    number or capacity of participating devices.
11        (5) The electric utility may include reasonable
12    requirements for participation consistent with this
13    subsection (c) except that the utility may not require
14    collateral from the owner or operator of a participating
15    eligible device.
16        (6) Nothing in the tariff or this Section shall
17    separately or independently authorize the utility to
18    control deployment of the storage device.
19        (7) The utility shall recover the costs incurred under
20    the tariff through delivery rates, including delivery
21    rates authorized by the Multi-Year Rate Plan.
22    (d) The Commission shall approve, or approve with
23modifications, the initial tariff filed by each utility
24pursuant to subsection (c) within 240 days after filing by the
25utility. At any time, the utility may propose revisions to the
26initial tariff or any revisions thereto, and the Commission

 

 

SB3957- 297 -LRB103 40954 SPS 74001 b

1shall approve such revisions if, in addition to requirements
2under Article IX, such revisions are consistent with the
3requirements of this Section.
4    (e) After the threshold date, the utility shall file an
5annual petition to update the initial tariff for eligible
6systems that begin to take service under the tariff during the
7annual period. The utility shall be allowed to update the peak
8discharge payment and defined discharge hours, which shall not
9begin earlier than 4 p.m., but must otherwise meet all the
10requirements under subsection (c). The Commission shall
11approve the petition to update the initial tariff within 90
12days after the petition is filed.
13    (f) Nothing in this Section, including any rule,
14regulation, or tariff authorized by this Section, shall
15prevent the eligible device or any component of the eligible
16device from participating in any program required or
17authorized by Section 16-107.6, nor shall it impair the
18entitlement of any participating customer to benefits
19authorized by Section 16-107.5.
20    (g) The tariffs approved by the Commission shall not
21reflect any additional charges, fees, or insurance
22requirements imposed on those owning or operating distributed
23renewable energy generation devices, distributed energy
24resources, or energy storage systems beyond those imposed on
25similarly situated customers that do not own or operate these
26resources.

 

 

SB3957- 298 -LRB103 40954 SPS 74001 b

1    (h) If a utility issuing a tariff under this Section
2conducts measurement and verification prescribed by the
3Commission, notwithstanding anything to the contrary, all
4discharge from community renewable generation projects taking
5service under the tariff shall be counted toward the utility's
6peak load reduction performance metric authorized by item (ii)
7of subparagraph (A) of paragraph (2) of subsection (e) of
8Section 16-108.18. The Commission shall not require an
9eligible system to participate in any capacity or demand
10response markets or programs as a condition of the load
11reduction attributable to participating systems to count
12toward the utility's peak load reduction performance metric.
 
13    (220 ILCS 5/16-107.11 new)
14    Sec. 16-107.11. Stand-alone energy storage distribution
15deployment program.
16    (a) In this Section:
17    "Eligible device" means a stand-alone energy storage
18system.
19    "Paired" means an energy storage system is charged with
20electricity generated by a distribution generation device or
21community renewable generation project.
22    "Program" means the stand-alone energy storage
23distribution deployment program.
24    "Stand-alone energy storage system" means an energy
25storage system that is not paired with a distributed

 

 

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1generation device or a community renewable generation project
2and may be interconnected on the customer's side or the
3utility's side of a customer's meter, but shall be
4interconnected under adopted under subsection (h) of Section
516-107.5.
6    (b) The General Assembly finds that energy storage devices
7interconnected to the distribution grid, including behind
8customer meters, can provide unique values and benefits to
9electric ratepayers in Illinois. Energy storage does not need
10to be paired with a renewable generation device to provide
11values and benefits. Vulnerable urban areas may be less able
12to support renewable generation deployments, due to land,
13roof, or other constraints. A well-designed stand-alone energy
14storage deployment program can benefit electric customers in
15the following by alleviating stress on distribution grid
16infrastructure, deferring or avoiding costly distribution grid
17investments, increasing the resilience and reliability of the
18electric distribution grid, reducing outages, avoiding health
19and welfare risks to vulnerable populations, and providing
20energy and capacity during times of high demand, resulting in
21lower costs overall.
22    (c) Within 60 days after the effective date of this
23amendatory Act of the 103rd General Assembly, the Commission
24shall establish a working group with relevant stakeholders to
25develop a stand-alone energy storage distribution deployment
26program. The program shall be designed to compensate

 

 

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1front-of-meter and behind-of-meter energy storage devices
2deployed on the distribution grid for the value the storage
3devices provide for Illinois ratepayers.
4    (d) Each utility serving more than 100,000 retail
5customers on January 1, 2023 shall file with the Commission,
6no more than 210 days after the effective date of this
7amendatory Act of the 103rd General Assembly, a tariff
8implementing the requirements of this subsection. The
9Commission shall consider the final report of the working
10group pursuant described in subsection (c) and modify the
11tariffs so that they comply with this Section and the working
12group's report. A tariff for compensation of stand-alone
13energy storage systems shall be made available for no less
14than 20 years and shall allow for stacked revenues to reflect
15the spectrum of values provided by participating devices. The
16resulting revenue model shall be financeable and provide for
17robust deployment in locations that improve reliability in
18vulnerable urban, suburban, and rural communities throughout
19the State. The compensation structure for deploying
20stand-alone energy storage systems shall include, but not be
21limited to, capacity and transmission value, energy value,
22system-wide resilience and reliability benefits, and
23distribution value, including the value equivalent to the
24location's marginal cost of distribution service, that shall
25include avoided future distribution grid capital investments
26and operation and maintenance costs and shall be updated at

 

 

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1least annually. The compensation structure shall consider
2additional benefits to the distribution grid in specific
3locations where the grid and communities are particularly
4vulnerable to disruptions, including location-specific
5reliability and resilience benefits, distribution voltage, and
6power quality benefits. The values shall be examined on a
7substation and feeder level. For purposes of subsection (d),
8"vulnerable communities" means communities that suffer from
9lower-than-average electric reliability indicators,
10including, but not limited to, SAFI, CADI, and CEMI, as
11identified by the Commission, in consultation with the
12utilities.
13    (e) Each tariff applies to stand-alone energy storage
14systems interconnected to the distribution grid and purchasing
15certain services from the utility.
16    (f) The tariffs shall account for operational parameters
17of participating systems and advantage off-peak charging
18through dynamic pricing. Distribution rates shall be
19non-discriminatory and designed to recoup the distribution
20company's net costs in a manner similar to how they are
21incurred by the distribution company, in consideration of
22project sponsor-funded interconnection upgrades and without
23unduly impeding the participation of energy storage systems.
24    (g) To the extent required, each utility filing a tariff
25under this Section shall provide the Commission with notice of
26its intent to promptly file with the Federal Energy Regulatory

 

 

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1Commission a wholesale distribution service rate schedule to
2apply to stand-alone energy storage systems that are
3interconnected to their distribution network but are
4transacting in PJM or MISO's wholesale electricity markets, as
5applicable.
6    (h) Participation in the program shall not prohibit an
7energy storage system from selling non-duplicative products
8and services in a wholesale market.
 
9    (220 ILCS 5/16-108)
10    Sec. 16-108. Recovery of costs associated with the
11provision of delivery and other services.
12    (a) An electric utility shall file a delivery services
13tariff with the Commission at least 210 days prior to the date
14that it is required to begin offering such services pursuant
15to this Act. An electric utility shall provide the components
16of delivery services that are subject to the jurisdiction of
17the Federal Energy Regulatory Commission at the same prices,
18terms and conditions set forth in its applicable tariff as
19approved or allowed into effect by that Commission. The
20Commission shall otherwise have the authority pursuant to
21Article IX to review, approve, and modify the prices, terms
22and conditions of those components of delivery services not
23subject to the jurisdiction of the Federal Energy Regulatory
24Commission, including the authority to determine the extent to
25which such delivery services should be offered on an unbundled

 

 

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1basis. In making any such determination the Commission shall
2consider, at a minimum, the effect of additional unbundling on
3(i) the objective of just and reasonable rates, (ii) electric
4utility employees, and (iii) the development of competitive
5markets for electric energy services in Illinois.
6    (b) The Commission shall enter an order approving, or
7approving as modified, the delivery services tariff no later
8than 30 days prior to the date on which the electric utility
9must commence offering such services. The Commission may
10subsequently modify such tariff pursuant to this Act.
11    (c) The electric utility's tariffs shall define the
12classes of its customers for purposes of delivery services
13charges. Delivery services shall be priced and made available
14to all retail customers electing delivery services in each
15such class on a nondiscriminatory basis regardless of whether
16the retail customer chooses the electric utility, an affiliate
17of the electric utility, or another entity as its supplier of
18electric power and energy. Charges for delivery services shall
19be cost based, and shall allow the electric utility to recover
20the costs of providing delivery services through its charges
21to its delivery service customers that use the facilities and
22services associated with such costs. Such costs shall include
23the costs of owning, operating and maintaining transmission
24and distribution facilities. The Commission shall also be
25authorized to consider whether, and if so to what extent, the
26following costs are appropriately included in the electric

 

 

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1utility's delivery services rates: (i) the costs of that
2portion of generation facilities used for the production and
3absorption of reactive power in order that retail customers
4located in the electric utility's service area can receive
5electric power and energy from suppliers other than the
6electric utility, and (ii) the costs associated with the use
7and redispatch of generation facilities to mitigate
8constraints on the transmission or distribution system in
9order that retail customers located in the electric utility's
10service area can receive electric power and energy from
11suppliers other than the electric utility. Nothing in this
12subsection shall be construed as directing the Commission to
13allocate any of the costs described in (i) or (ii) that are
14found to be appropriately included in the electric utility's
15delivery services rates to any particular customer group or
16geographic area in setting delivery services rates.
17    (d) The Commission shall establish charges, terms and
18conditions for delivery services that are just and reasonable
19and shall take into account customer impacts when establishing
20such charges. In establishing charges, terms and conditions
21for delivery services, the Commission shall take into account
22voltage level differences. A retail customer shall have the
23option to request to purchase electric service at any delivery
24service voltage reasonably and technically feasible from the
25electric facilities serving that customer's premises provided
26that there are no significant adverse impacts upon system

 

 

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1reliability or system efficiency. A retail customer shall also
2have the option to request to purchase electric service at any
3point of delivery that is reasonably and technically feasible
4provided that there are no significant adverse impacts on
5system reliability or efficiency. Such requests shall not be
6unreasonably denied.
7    (e) Electric utilities shall recover the costs of
8installing, operating or maintaining facilities for the
9particular benefit of one or more delivery services customers,
10including without limitation any costs incurred in complying
11with a customer's request to be served at a different voltage
12level, directly from the retail customer or customers for
13whose benefit the costs were incurred, to the extent such
14costs are not recovered through the charges referred to in
15subsections (c) and (d) of this Section.
16    (f) An electric utility shall be entitled but not required
17to implement transition charges in conjunction with the
18offering of delivery services pursuant to Section 16-104. If
19an electric utility implements transition charges, it shall
20implement such charges for all delivery services customers and
21for all customers described in subsection (h), but shall not
22implement transition charges for power and energy that a
23retail customer takes from cogeneration or self-generation
24facilities located on that retail customer's premises, if such
25facilities meet the following criteria:
26        (i) the cogeneration or self-generation facilities

 

 

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1    serve a single retail customer and are located on that
2    retail customer's premises (for purposes of this
3    subparagraph and subparagraph (ii), an industrial or
4    manufacturing retail customer and a third party contractor
5    that is served by such industrial or manufacturing
6    customer through such retail customer's own electrical
7    distribution facilities under the circumstances described
8    in subsection (vi) of the definition of "alternative
9    retail electric supplier" set forth in Section 16-102,
10    shall be considered a single retail customer);
11        (ii) the cogeneration or self-generation facilities
12    either (A) are sized pursuant to generally accepted
13    engineering standards for the retail customer's electrical
14    load at that premises (taking into account standby or
15    other reliability considerations related to that retail
16    customer's operations at that site) or (B) if the facility
17    is a cogeneration facility located on the retail
18    customer's premises, the retail customer is the thermal
19    host for that facility and the facility has been designed
20    to meet that retail customer's thermal energy requirements
21    resulting in electrical output beyond that retail
22    customer's electrical demand at that premises, comply with
23    the operating and efficiency standards applicable to
24    "qualifying facilities" specified in title 18 Code of
25    Federal Regulations Section 292.205 as in effect on the
26    effective date of this amendatory Act of 1999;

 

 

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1        (iii) the retail customer on whose premises the
2    facilities are located either has an exclusive right to
3    receive, and corresponding obligation to pay for, all of
4    the electrical capacity of the facility, or in the case of
5    a cogeneration facility that has been designed to meet the
6    retail customer's thermal energy requirements at that
7    premises, an identified amount of the electrical capacity
8    of the facility, over a minimum 5-year period; and
9        (iv) if the cogeneration facility is sized for the
10    retail customer's thermal load at that premises but
11    exceeds the electrical load, any sales of excess power or
12    energy are made only at wholesale, are subject to the
13    jurisdiction of the Federal Energy Regulatory Commission,
14    and are not for the purpose of circumventing the
15    provisions of this subsection (f).
16If a generation facility located at a retail customer's
17premises does not meet the above criteria, an electric utility
18implementing transition charges shall implement a transition
19charge until December 31, 2006 for any power and energy taken
20by such retail customer from such facility as if such power and
21energy had been delivered by the electric utility. Provided,
22however, that an industrial retail customer that is taking
23power from a generation facility that does not meet the above
24criteria but that is located on such customer's premises will
25not be subject to a transition charge for the power and energy
26taken by such retail customer from such generation facility if

 

 

SB3957- 308 -LRB103 40954 SPS 74001 b

1the facility does not serve any other retail customer and
2either was installed on behalf of the customer and for its own
3use prior to January 1, 1997, or is both predominantly fueled
4by byproducts of such customer's manufacturing process at such
5premises and sells or offers an average of 300 megawatts or
6more of electricity produced from such generation facility
7into the wholesale market. Such charges shall be calculated as
8provided in Section 16-102, and shall be collected on each
9kilowatt-hour delivered under a delivery services tariff to a
10retail customer from the date the customer first takes
11delivery services until December 31, 2006 except as provided
12in subsection (h) of this Section. Provided, however, that an
13electric utility, other than an electric utility providing
14service to at least 1,000,000 customers in this State on
15January 1, 1999, shall be entitled to petition for entry of an
16order by the Commission authorizing the electric utility to
17implement transition charges for an additional period ending
18no later than December 31, 2008. The electric utility shall
19file its petition with supporting evidence no earlier than 16
20months, and no later than 12 months, prior to December 31,
212006. The Commission shall hold a hearing on the electric
22utility's petition and shall enter its order no later than 8
23months after the petition is filed. The Commission shall
24determine whether and to what extent the electric utility
25shall be authorized to implement transition charges for an
26additional period. The Commission may authorize the electric

 

 

SB3957- 309 -LRB103 40954 SPS 74001 b

1utility to implement transition charges for some or all of the
2additional period, and shall determine the mitigation factors
3to be used in implementing such transition charges; provided,
4that the Commission shall not authorize mitigation factors
5less than 110% of those in effect during the 12 months ended
6December 31, 2006. In making its determination, the Commission
7shall consider the following factors: the necessity to
8implement transition charges for an additional period in order
9to maintain the financial integrity of the electric utility;
10the prudence of the electric utility's actions in reducing its
11costs since the effective date of this amendatory Act of 1997;
12the ability of the electric utility to provide safe, adequate
13and reliable service to retail customers in its service area;
14and the impact on competition of allowing the electric utility
15to implement transition charges for the additional period.
16    (g) The electric utility shall file tariffs that establish
17the transition charges to be paid by each class of customers to
18the electric utility in conjunction with the provision of
19delivery services. The electric utility's tariffs shall define
20the classes of its customers for purposes of calculating
21transition charges. The electric utility's tariffs shall
22provide for the calculation of transition charges on a
23customer-specific basis for any retail customer whose average
24monthly maximum electrical demand on the electric utility's
25system during the 6 months with the customer's highest monthly
26maximum electrical demands equals or exceeds 3.0 megawatts for

 

 

SB3957- 310 -LRB103 40954 SPS 74001 b

1electric utilities having more than 1,000,000 customers, and
2for other electric utilities for any customer that has an
3average monthly maximum electrical demand on the electric
4utility's system of one megawatt or more, and (A) for which
5there exists data on the customer's usage during the 3 years
6preceding the date that the customer became eligible to take
7delivery services, or (B) for which there does not exist data
8on the customer's usage during the 3 years preceding the date
9that the customer became eligible to take delivery services,
10if in the electric utility's reasonable judgment there exists
11comparable usage information or a sufficient basis to develop
12such information, and further provided that the electric
13utility can require customers for which an individual
14calculation is made to sign contracts that set forth the
15transition charges to be paid by the customer to the electric
16utility pursuant to the tariff.
17    (h) An electric utility shall also be entitled to file
18tariffs that allow it to collect transition charges from
19retail customers in the electric utility's service area that
20do not take delivery services but that take electric power or
21energy from an alternative retail electric supplier or from an
22electric utility other than the electric utility in whose
23service area the customer is located. Such charges shall be
24calculated, in accordance with the definition of transition
25charges in Section 16-102, for the period of time that the
26customer would be obligated to pay transition charges if it

 

 

SB3957- 311 -LRB103 40954 SPS 74001 b

1were taking delivery services, except that no deduction for
2delivery services revenues shall be made in such calculation,
3and usage data from the customer's class shall be used where
4historical usage data is not available for the individual
5customer. The customer shall be obligated to pay such charges
6on a lump sum basis on or before the date on which the customer
7commences to take service from the alternative retail electric
8supplier or other electric utility, provided, that the
9electric utility in whose service area the customer is located
10shall offer the customer the option of signing a contract
11pursuant to which the customer pays such charges ratably over
12the period in which the charges would otherwise have applied.
13    (i) An electric utility shall be entitled to add to the
14bills of delivery services customers charges pursuant to
15Sections 9-221, 9-222 (except as provided in Section 9-222.1),
16and Section 16-114 of this Act, Section 5-5 of the Electricity
17Infrastructure Maintenance Fee Law, Section 6-5 of the
18Renewable Energy, Energy Efficiency, and Coal Resources
19Development Law of 1997, and Section 13 of the Energy
20Assistance Act.
21    (i-5) An electric utility required to impose the Coal to
22Solar and Energy Storage Initiative Charge provided for in
23subsection (c-5) of Section 1-75 of the Illinois Power Agency
24Act shall add such charge to the bills of its delivery services
25customers pursuant to the terms of a tariff conforming to the
26requirements of subsection (c-5) of Section 1-75 of the

 

 

SB3957- 312 -LRB103 40954 SPS 74001 b

1Illinois Power Agency Act and this subsection (i-5) and filed
2with and approved by the Commission. The electric utility
3shall file its proposed tariff with the Commission on or
4before July 1, 2022 to be effective, after review and approval
5or modification by the Commission, beginning January 1, 2023.
6On or before December 1, 2022, the Commission shall review the
7electric utility's proposed tariff, including by conducting a
8docketed proceeding if deemed necessary by the Commission, and
9shall approve the proposed tariff or direct the electric
10utility to make modifications the Commission finds necessary
11for the tariff to conform to the requirements of subsection
12(c-5) of Section 1-75 of the Illinois Power Agency Act and this
13subsection (i-5). The electric utility's tariff shall provide
14for imposition of the Coal to Solar and Energy Storage
15Initiative Charge on a per-kilowatthour basis to all
16kilowatthours delivered by the electric utility to its
17delivery services customers. The tariff shall provide for the
18calculation of the Coal to Solar and Energy Storage Initiative
19Charge to be in effect for the year beginning January 1, 2023
20and each year beginning January 1 thereafter, sufficient to
21collect the electric utility's estimated payment obligations
22for the delivery year beginning the following June 1 under
23contracts for purchase of renewable energy credits entered
24into pursuant to subsection (c-5) of Section 1-75 of the
25Illinois Power Agency Act and the obligations of the
26Department of Commerce and Economic Opportunity, or any

 

 

SB3957- 313 -LRB103 40954 SPS 74001 b

1successor department or agency, which for purposes of this
2subsection (i-5) shall be referred to as the Department, to
3make grant payments during such delivery year from the Coal to
4Solar and Energy Storage Initiative Fund pursuant to grant
5contracts entered into pursuant to subsection (c-5) of Section
61-75 of the Illinois Power Agency Act, and using the electric
7utility's kilowatthour deliveries to its delivery services
8customers during the delivery year ended May 31 of the
9preceding calendar year. On or before November 1 of each year
10beginning November 1, 2022, the Department shall notify the
11electric utilities of the amount of the Department's estimated
12obligations for grant payments during the delivery year
13beginning the following June 1 pursuant to grant contracts
14entered into pursuant to subsection (c-5) of Section 1-75 of
15the Illinois Power Agency Act; and each electric utility shall
16incorporate in the calculation of its Coal to Solar and Energy
17Storage Initiative Charge the fractional portion of the
18Department's estimated obligations equal to the electric
19utility's kilowatthour deliveries to its delivery services
20customers in the delivery year ended the preceding May 31
21divided by the aggregate deliveries of both electric utilities
22to delivery services customers in such delivery year. The
23electric utility shall remit on a monthly basis to the State
24Treasurer, for deposit in the Coal to Solar and Energy Storage
25Initiative Fund provided for in subsection (c-5) of Section
261-75 of the Illinois Power Agency Act, the electric utility's

 

 

SB3957- 314 -LRB103 40954 SPS 74001 b

1collections of the Coal to Solar and Energy Storage Initiative
2Charge estimated to be needed by the Department for grant
3payments pursuant to grant contracts entered into pursuant to
4subsection (c-5) of Section 1-75 of the Illinois Power Agency
5Act. The initial charge under the electric utility's tariff
6shall be effective for kilowatthours delivered beginning
7January 1, 2023, and thereafter shall be revised to be
8effective January 1, 2024 and each January 1 thereafter, based
9on the payment obligations for the delivery year beginning the
10following June 1. The tariff shall provide for the electric
11utility to make an annual filing with the Commission on or
12before November 15 of each year, beginning in 2023, setting
13forth the Coal to Solar and Energy Storage Initiative Charge
14to be in effect for the year beginning the following January 1.
15The electric utility's tariff shall also provide that the
16electric utility shall make a filing with the Commission on or
17before August 1 of each year beginning in 2024 setting forth a
18reconciliation, for the delivery year ended the preceding May
1931, of the electric utility's collections of the Coal to Solar
20and Energy Storage Initiative Charge against actual payments
21for renewable energy credits pursuant to contracts entered
22into, and the actual grant payments by the Department pursuant
23to grant contracts entered into, pursuant to subsection (c-5)
24of Section 1-75 of the Illinois Power Agency Act. The tariff
25shall provide that any excess or shortfall of collections to
26payments shall be deducted from or added to, on a

 

 

SB3957- 315 -LRB103 40954 SPS 74001 b

1per-kilowatthour basis, the Coal to Solar and Energy Storage
2Initiative Charge, over the 6-month period beginning October 1
3of that calendar year.
4    (j) If a retail customer that obtains electric power and
5energy from cogeneration or self-generation facilities
6installed for its own use on or before January 1, 1997,
7subsequently takes service from an alternative retail electric
8supplier or an electric utility other than the electric
9utility in whose service area the customer is located for any
10portion of the customer's electric power and energy
11requirements formerly obtained from those facilities
12(including that amount purchased from the utility in lieu of
13such generation and not as standby power purchases, under a
14cogeneration displacement tariff in effect as of the effective
15date of this amendatory Act of 1997), the transition charges
16otherwise applicable pursuant to subsections (f), (g), or (h)
17of this Section shall not be applicable in any year to that
18portion of the customer's electric power and energy
19requirements formerly obtained from those facilities,
20provided, that for purposes of this subsection (j), such
21portion shall not exceed the average number of kilowatt-hours
22per year obtained from the cogeneration or self-generation
23facilities during the 3 years prior to the date on which the
24customer became eligible for delivery services, except as
25provided in subsection (f) of Section 16-110.
26    (k) The electric utility shall be entitled to recover

 

 

SB3957- 316 -LRB103 40954 SPS 74001 b

1through tariffed charges all of the costs associated with the
2purchase of zero emission credits from zero emission
3facilities to meet the requirements of subsection (d-5) of
4Section 1-75 of the Illinois Power Agency Act and all of the
5costs associated with the purchase of carbon mitigation
6credits from carbon-free energy resources to meet the
7requirements of subsection (d-10) of Section 1-75 of the
8Illinois Power Agency Act. Such costs shall include the costs
9of procuring the zero emission credits and carbon mitigation
10credits from carbon-free energy resources, as well as the
11reasonable costs that the utility incurs as part of the
12procurement processes and to implement and comply with plans
13and processes approved by the Commission under subsections
14(d-5) and (d-10). The costs shall be allocated across all
15retail customers through a single, uniform cents per
16kilowatt-hour charge applicable to all retail customers, which
17shall appear as a separate line item on each customer's bill.
18Beginning June 1, 2017, the electric utility shall be entitled
19to recover through tariffed charges all of the costs
20associated with the purchase of renewable energy resources to
21meet the renewable energy resource standards of subsection (c)
22of Section 1-75 of the Illinois Power Agency Act, under
23procurement plans as approved in accordance with that Section
24and Section 16-111.5 of this Act. Such costs shall include the
25costs of procuring the renewable energy resources, as well as
26the reasonable costs that the utility incurs as part of the

 

 

SB3957- 317 -LRB103 40954 SPS 74001 b

1procurement processes and to implement and comply with plans
2and processes approved by the Commission under such Sections.
3The costs associated with the purchase of renewable energy
4resources shall be allocated across all retail customers in
5proportion to the amount of renewable energy resources the
6utility procures for such customers through a single, uniform
7cents per kilowatt-hour charge applicable to such retail
8customers, which shall appear as a separate line item on each
9such customer's bill. The credits, costs, and penalties
10associated with the self-direct renewable portfolio standard
11compliance program described in subparagraph (R) of paragraph
12(1) of subsection (c) of Section 1-75 of the Illinois Power
13Agency Act shall be allocated to approved eligible self-direct
14customers by the utility in a cents per kilowatt-hour credit,
15cost, or penalty, which shall appear as a separate line item on
16each such customer's bill.
17    Beginning on June 1, 2024, the electric utility shall be
18entitled to recover through tariffed charges all of the costs
19associated with the purchase of energy storage credits to meet
20the energy storage standards of Section 1-93 of the Illinois
21Power Agency Act under procurement plans approved in
22accordance with that Section and Section 16-111.5. The costs
23shall include the costs of procuring the energy storage
24credits and the reasonable costs that the utility incurs as
25part of the procurement processes and implementing and
26complying with plans and processes approved by the Commission.

 

 

SB3957- 318 -LRB103 40954 SPS 74001 b

1The costs associated with the purchase of energy storage
2credits shall be allocated across all retail customers in
3proportion to the amount of energy storage credits the
4electric utility procures for the customers through a single,
5uniform cents per kilowatt-hour charge applicable to the
6retail customers, that shall appear as a separate line item on
7each customer's bill.
8    Notwithstanding whether the Commission has approved the
9initial long-term renewable resources procurement plan as of
10June 1, 2017, an electric utility shall place new tariffed
11charges into effect beginning with the June 2017 monthly
12billing period, to the extent practicable, to begin recovering
13the costs of procuring renewable energy resources, as those
14charges are calculated under the limitations described in
15subparagraph (E) of paragraph (1) of subsection (c) of Section
161-75 of the Illinois Power Agency Act. Notwithstanding the
17date on which the utility places such new tariffed charges
18into effect, the utility shall be permitted to collect the
19charges under such tariff as if the tariff had been in effect
20beginning with the first day of the June 2017 monthly billing
21period. For the delivery years commencing June 1, 2017, June
221, 2018, June 1, 2019, and each delivery year thereafter, the
23electric utility shall deposit into a separate interest
24bearing account of a financial institution the monies
25collected under the tariffed charges. Money collected from
26customers for the procurement of renewable energy resources in

 

 

SB3957- 319 -LRB103 40954 SPS 74001 b

1a given delivery year may be spent by the utility for the
2procurement of renewable resources over any of the following 5
3delivery years, after which unspent money shall be credited
4back to retail customers. The electric utility shall spend all
5money collected in earlier delivery years that has not yet
6been returned to customers, first, before spending money
7collected in later delivery years. Any interest earned shall
8be credited back to retail customers under the reconciliation
9proceeding provided for in this subsection (k), provided that
10the electric utility shall first be reimbursed from the
11interest for the administrative costs that it incurs to
12administer and manage the account. Any taxes due on the funds
13in the account, or interest earned on it, will be paid from the
14account or, if insufficient monies are available in the
15account, from the monies collected under the tariffed charges
16to recover the costs of procuring renewable energy resources.
17Monies deposited in the account shall be subject to the
18review, reconciliation, and true-up process described in this
19subsection (k) that is applicable to the funds collected and
20costs incurred for the procurement of renewable energy
21resources.
22    The electric utility shall be entitled to recover all of
23the costs identified in this subsection (k) through automatic
24adjustment clause tariffs applicable to all of the utility's
25retail customers that allow the electric utility to adjust its
26tariffed charges consistent with this subsection (k). The

 

 

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1determination as to whether any excess funds were collected
2during a given delivery year for the purchase of renewable
3energy resources, and the crediting of any excess funds back
4to retail customers, shall not be made until after the close of
5the delivery year, which will ensure that the maximum amount
6of funds is available to implement the approved long-term
7renewable resources procurement plan during a given delivery
8year. The amount of excess funds eligible to be credited back
9to retail customers shall be reduced by an amount equal to the
10payment obligations required by any contracts entered into by
11an electric utility under contracts described in subsection
12(b) of Section 1-56 and subsection (c) of Section 1-75 of the
13Illinois Power Agency Act, even if such payments have not yet
14been made and regardless of the delivery year in which those
15payment obligations were incurred. Notwithstanding anything to
16the contrary, including in tariffs authorized by this
17subsection (k) in effect before the effective date of this
18amendatory Act of the 102nd General Assembly, all unspent
19funds as of May 31, 2021, excluding any funds credited to
20customers during any utility billing cycle that commences
21prior to the effective date of this amendatory Act of the 102nd
22General Assembly, shall remain in the utility account and
23shall on a first in, first out basis be used toward utility
24payment obligations under contracts described in subsection
25(b) of Section 1-56 and subsection (c) of Section 1-75 of the
26Illinois Power Agency Act. The electric utility's collections

 

 

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1under such automatic adjustment clause tariffs to recover the
2costs of renewable energy resources, zero emission credits
3from zero emission facilities, and carbon mitigation credits
4from carbon-free energy resources shall be subject to separate
5annual review, reconciliation, and true-up against actual
6costs by the Commission under a procedure that shall be
7specified in the electric utility's automatic adjustment
8clause tariffs and that shall be approved by the Commission in
9connection with its approval of such tariffs. The procedure
10shall provide that any difference between the electric
11utility's collections for zero emission credits and carbon
12mitigation credits under the automatic adjustment charges for
13an annual period and the electric utility's actual costs of
14zero emission credits from zero emission facilities and carbon
15mitigation credits from carbon-free energy resources for that
16same annual period shall be refunded to or collected from, as
17applicable, the electric utility's retail customers in
18subsequent periods.
19    Nothing in this subsection (k) is intended to affect,
20limit, or change the right of the electric utility to recover
21the costs associated with the procurement of renewable energy
22resources for periods commencing before, on, or after June 1,
232017, as otherwise provided in the Illinois Power Agency Act.
24    The funding available under this subsection (k), if any,
25for the programs described under subsection (b) of Section
261-56 of the Illinois Power Agency Act shall not reduce the

 

 

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1amount of funding for the programs described in subparagraph
2(O) of paragraph (1) of subsection (c) of Section 1-75 of the
3Illinois Power Agency Act. If funding is available under this
4subsection (k) for programs described under subsection (b) of
5Section 1-56 of the Illinois Power Agency Act, then the
6long-term renewable resources plan shall provide for the
7Agency to procure contracts in an amount that does not exceed
8the funding, and the contracts approved by the Commission
9shall be executed by the applicable utility or utilities.
10    (l) A utility that has terminated any contract executed
11under subsection (d-5) or (d-10) of Section 1-75 of the
12Illinois Power Agency Act shall be entitled to recover any
13remaining balance associated with the purchase of zero
14emission credits prior to such termination, and such utility
15shall also apply a credit to its retail customer bills in the
16event of any over-collection.
17    (m)(1) An electric utility that recovers its costs of
18procuring zero emission credits from zero emission facilities
19through a cents-per-kilowatthour charge under subsection (k)
20of this Section shall be subject to the requirements of this
21subsection (m). Notwithstanding anything to the contrary, such
22electric utility shall, beginning on April 30, 2018, and each
23April 30 thereafter until April 30, 2026, calculate whether
24any reduction must be applied to such cents-per-kilowatthour
25charge that is paid by retail customers of the electric
26utility that have opted out of subsections (a) through (j) of

 

 

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1Section 8-103B of this Act under subsection (l) of Section
28-103B. Such charge shall be reduced for such customers for
3the next delivery year commencing on June 1 based on the amount
4necessary, if any, to limit the annual estimated average net
5increase for the prior calendar year due to the future energy
6investment costs to no more than 1.3% of 5.98 cents per
7kilowatt-hour, which is the average amount paid per
8kilowatthour for electric service during the year ending
9December 31, 2015 by Illinois industrial retail customers, as
10reported to the Edison Electric Institute.
11    The calculations required by this subsection (m) shall be
12made only once for each year, and no subsequent rate impact
13determinations shall be made.
14    (2) For purposes of this Section, "future energy
15investment costs" shall be calculated by subtracting the
16cents-per-kilowatthour charge identified in subparagraph (A)
17of this paragraph (2) from the sum of the
18cents-per-kilowatthour charges identified in subparagraph (B)
19of this paragraph (2):
20        (A) The cents-per-kilowatthour charge identified in
21    the electric utility's tariff placed into effect under
22    Section 8-103 of the Public Utilities Act that, on
23    December 1, 2016, was applicable to those retail customers
24    that have opted out of subsections (a) through (j) of
25    Section 8-103B of this Act under subsection (l) of Section
26    8-103B.

 

 

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1        (B) The sum of the following cents-per-kilowatthour
2    charges applicable to those retail customers that have
3    opted out of subsections (a) through (j) of Section 8-103B
4    of this Act under subsection (l) of Section 8-103B,
5    provided that if one or more of the following charges has
6    been in effect and applied to such customers for more than
7    one calendar year, then each charge shall be equal to the
8    average of the charges applied over a period that
9    commences with the calendar year ending December 31, 2017
10    and ends with the most recently completed calendar year
11    prior to the calculation required by this subsection (m):
12            (i) the cents-per-kilowatthour charge to recover
13        the costs incurred by the utility under subsection
14        (d-5) of Section 1-75 of the Illinois Power Agency
15        Act, adjusted for any reductions required under this
16        subsection (m); and
17            (ii) the cents-per-kilowatthour charge to recover
18        the costs incurred by the utility under Section
19        16-107.6 of the Public Utilities Act.
20        If no charge was applied for a given calendar year
21    under item (i) or (ii) of this subparagraph (B), then the
22    value of the charge for that year shall be zero.
23    (3) If a reduction is required by the calculation
24performed under this subsection (m), then the amount of the
25reduction shall be multiplied by the number of years reflected
26in the averages calculated under subparagraph (B) of paragraph

 

 

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1(2) of this subsection (m). Such reduction shall be applied to
2the cents-per-kilowatthour charge that is applicable to those
3retail customers that have opted out of subsections (a)
4through (j) of Section 8-103B of this Act under subsection (l)
5of Section 8-103B beginning with the next delivery year
6commencing after the date of the calculation required by this
7subsection (m).
8    (4) The electric utility shall file a notice with the
9Commission on May 1 of 2018 and each May 1 thereafter until May
101, 2026 containing the reduction, if any, which must be
11applied for the delivery year which begins in the year of the
12filing. The notice shall contain the calculations made
13pursuant to this Section. By October 1 of each year beginning
14in 2018, each electric utility shall notify the Commission if
15it appears, based on an estimate of the calculation required
16in this subsection (m), that a reduction will be required in
17the next year.
18(Source: P.A. 102-662, eff. 9-15-21.)
 
19    (220 ILCS 5/16-111.5)
20    Sec. 16-111.5. Provisions relating to procurement.
21    (a) An electric utility that on December 31, 2005 served
22at least 100,000 customers in Illinois shall procure power and
23energy for its eligible retail customers in accordance with
24the applicable provisions set forth in Section 1-75 of the
25Illinois Power Agency Act and this Section. Beginning with the

 

 

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1delivery year commencing on June 1, 2024, an electric utility
2serving over 100,000 customers in Illinois shall also procure
3energy storage credits in accordance with the applicable
4provisions of Sections 1-75 and 1-93 of the Illinois Power
5Agency Act and this Section. Beginning with the delivery year
6commencing on June 1, 2017, such electric utility shall also
7procure zero emission credits from zero emission facilities in
8accordance with the applicable provisions set forth in Section
91-75 of the Illinois Power Agency Act, and, for years
10beginning on or after June 1, 2017, the utility shall procure
11renewable energy resources in accordance with the applicable
12provisions set forth in Section 1-75 of the Illinois Power
13Agency Act and this Section. Beginning with the delivery year
14commencing on June 1, 2022, an electric utility serving over
153,000,000 customers shall also procure carbon mitigation
16credits from carbon-free energy resources in accordance with
17the applicable provisions set forth in Section 1-75 of the
18Illinois Power Agency Act and this Section. A small
19multi-jurisdictional electric utility that on December 31,
202005 served less than 100,000 customers in Illinois may elect
21to procure power and energy for all or a portion of its
22eligible Illinois retail customers in accordance with the
23applicable provisions set forth in this Section and Section
241-75 of the Illinois Power Agency Act. This Section shall not
25apply to a small multi-jurisdictional utility until such time
26as a small multi-jurisdictional utility requests the Illinois

 

 

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1Power Agency to prepare a procurement plan for its eligible
2retail customers. "Eligible retail customers" for the purposes
3of this Section means those retail customers that purchase
4power and energy from the electric utility under fixed-price
5bundled service tariffs, other than those retail customers
6whose service is declared or deemed competitive under Section
716-113 and those other customer groups specified in this
8Section, including self-generating customers, customers
9electing hourly pricing, or those customers who are otherwise
10ineligible for fixed-price bundled tariff service. For those
11customers that are excluded from the procurement plan's
12electric supply service requirements, and the utility shall
13procure any supply requirements, including capacity, ancillary
14services, and hourly priced energy, in the applicable markets
15as needed to serve those customers, provided that the utility
16may include in its procurement plan load requirements for the
17load that is associated with those retail customers whose
18service has been declared or deemed competitive pursuant to
19Section 16-113 of this Act to the extent that those customers
20are purchasing power and energy during one of the transition
21periods identified in subsection (b) of Section 16-113 of this
22Act.
23    (b) A procurement plan shall be prepared for each electric
24utility consistent with the applicable requirements of the
25Illinois Power Agency Act and this Section. For purposes of
26this Section, Illinois electric utilities that are affiliated

 

 

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1by virtue of a common parent company are considered to be a
2single electric utility. Small multi-jurisdictional utilities
3may request a procurement plan for a portion of or all of its
4Illinois load. Each procurement plan shall analyze the
5projected balance of supply and demand for those retail
6customers to be included in the plan's electric supply service
7requirements over a 5-year period, with the first planning
8year beginning on June 1 of the year following the year in
9which the plan is filed. The plan shall specifically identify
10the wholesale products to be procured following plan approval,
11and shall follow all the requirements set forth in the Public
12Utilities Act and all applicable State and federal laws,
13statutes, rules, or regulations, as well as Commission orders.
14Nothing in this Section precludes consideration of contracts
15longer than 5 years and related forecast data. Unless
16specified otherwise in this Section, in the procurement plan
17or in the implementing tariff, any procurement occurring in
18accordance with this plan shall be competitively bid through a
19request for proposals process. Approval and implementation of
20the procurement plan shall be subject to review and approval
21by the Commission according to the provisions set forth in
22this Section. A procurement plan shall include each of the
23following components:
24        (1) Hourly load analysis. This analysis shall include:
25            (i) multi-year historical analysis of hourly
26        loads;

 

 

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1            (ii) switching trends and competitive retail
2        market analysis;
3            (iii) known or projected changes to future loads;
4        and
5            (iv) growth forecasts by customer class; and .
6            (v) the impact of load reduction and peak load
7        reduction through programs authorized by Sections
8        16-107.9, 16-107.10, and 16-107.11.
9        (2) Analysis of the impact of any demand side and
10    renewable energy initiatives. This analysis shall include:
11            (i) the impact of demand response programs and
12        energy efficiency programs, both current and
13        projected; for small multi-jurisdictional utilities,
14        the impact of demand response and energy efficiency
15        programs approved pursuant to Section 8-408 of this
16        Act, both current and projected; and
17            (ii) supply side needs that are projected to be
18        offset by purchases of renewable energy resources, if
19        any.
20        (3) A plan for meeting the expected load requirements
21    that will not be met through preexisting contracts. This
22    plan shall include:
23            (i) definitions of the different Illinois retail
24        customer classes for which supply is being purchased;
25            (ii) the proposed mix of demand-response products
26        for which contracts will be executed during the next

 

 

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1        year. For small multi-jurisdictional electric
2        utilities that on December 31, 2005 served fewer than
3        100,000 customers in Illinois, these shall be defined
4        as demand-response products offered in an energy
5        efficiency plan approved pursuant to Section 8-408 of
6        this Act. The cost-effective demand-response measures
7        shall be procured whenever the cost is lower than
8        procuring comparable capacity products, provided that
9        such products shall:
10                (A) be procured by a demand-response provider
11            from those retail customers included in the plan's
12            electric supply service requirements;
13                (B) at least satisfy the demand-response
14            requirements of the regional transmission
15            organization market in which the utility's service
16            territory is located, including, but not limited
17            to, any applicable capacity or dispatch
18            requirements;
19                (C) provide for customers' participation in
20            the stream of benefits produced by the
21            demand-response products;
22                (D) provide for reimbursement by the
23            demand-response provider of the utility for any
24            costs incurred as a result of the failure of the
25            supplier of such products to perform its
26            obligations thereunder; and

 

 

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1                (E) meet the same credit requirements as apply
2            to suppliers of capacity, in the applicable
3            regional transmission organization market;
4            (iii) monthly forecasted system supply
5        requirements, including expected minimum, maximum, and
6        average values for the planning period;
7            (iv) the proposed mix and selection of standard
8        wholesale products for which contracts will be
9        executed during the next year, separately or in
10        combination, to meet that portion of its load
11        requirements not met through pre-existing contracts,
12        including but not limited to monthly 5 x 16 peak period
13        block energy, monthly off-peak wrap energy, monthly 7
14        x 24 energy, annual 5 x 16 energy, other standardized
15        energy or capacity products designed to provide
16        eligible retail customer benefits from commercially
17        deployed advanced technologies including but not
18        limited to high voltage direct current converter
19        stations, as such term is defined in Section 1-10 of
20        the Illinois Power Agency Act, whether or not such
21        product is currently available in wholesale markets,
22        annual off-peak wrap energy, annual 7 x 24 energy,
23        monthly capacity, annual capacity, peak load capacity
24        obligations, capacity purchase plan, and ancillary
25        services;
26            (v) proposed term structures for each wholesale

 

 

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1        product type included in the proposed procurement plan
2        portfolio of products; and
3            (vi) an assessment of the price risk, load
4        uncertainty, and other factors that are associated
5        with the proposed procurement plan; this assessment,
6        to the extent possible, shall include an analysis of
7        the following factors: contract terms, time frames for
8        securing products or services, fuel costs, weather
9        patterns, transmission costs, market conditions, and
10        the governmental regulatory environment; the proposed
11        procurement plan shall also identify alternatives for
12        those portfolio measures that are identified as having
13        significant price risk and mitigation in the form of
14        additional retail customer and ratepayer price,
15        reliability, and environmental benefits from
16        standardized energy products delivered from
17        commercially deployed advanced technologies,
18        including, but not limited to, high voltage direct
19        current converter stations, as such term is defined in
20        Section 1-10 of the Illinois Power Agency Act, whether
21        or not such product is currently available in
22        wholesale markets.
23        (4) Proposed procedures for balancing loads. The
24    procurement plan shall include, for load requirements
25    included in the procurement plan, the process for (i)
26    hourly balancing of supply and demand and (ii) the

 

 

SB3957- 333 -LRB103 40954 SPS 74001 b

1    criteria for portfolio re-balancing in the event of
2    significant shifts in load.
3        (5) Long-Term Renewable Resources Procurement Plan.
4    The Agency shall prepare a long-term renewable resources
5    procurement plan for the procurement of renewable energy
6    credits under Sections 1-56 and 1-75 of the Illinois Power
7    Agency Act for delivery beginning in the 2017 delivery
8    year.
9            (i) The initial long-term renewable resources
10        procurement plan and all subsequent revisions shall be
11        subject to review and approval by the Commission. For
12        the purposes of this Section, "delivery year" has the
13        same meaning as in Section 1-10 of the Illinois Power
14        Agency Act. For purposes of this Section, "Agency"
15        shall mean the Illinois Power Agency.
16            (ii) The long-term renewable resources planning
17        process shall be conducted as follows:
18                (A) Electric utilities shall provide a range
19            of load forecasts to the Illinois Power Agency
20            within 45 days of the Agency's request for
21            forecasts, which request shall specify the length
22            and conditions for the forecasts including, but
23            not limited to, the quantity of distributed
24            generation expected to be interconnected for each
25            year.
26                (B) The Agency shall publish for comment the

 

 

SB3957- 334 -LRB103 40954 SPS 74001 b

1            initial long-term renewable resources procurement
2            plan no later than 120 days after the effective
3            date of this amendatory Act of the 99th General
4            Assembly and shall review, and may revise, the
5            plan at least every 2 years thereafter. To the
6            extent practicable, the Agency shall review and
7            propose any revisions to the long-term renewable
8            energy resources procurement plan in conjunction
9            with the Agency's other planning and approval
10            processes conducted under this Section. The
11            initial long-term renewable resources procurement
12            plan shall:
13                    (aa) Identify the procurement programs and
14                competitive procurement events consistent with
15                the applicable requirements of the Illinois
16                Power Agency Act and shall be designed to
17                achieve the goals set forth in subsection (c)
18                of Section 1-75 of that Act.
19                    (bb) Include a schedule for procurements
20                for renewable energy credits from
21                utility-scale wind projects, utility-scale
22                solar projects, and brownfield site
23                photovoltaic projects consistent with
24                subparagraph (G) of paragraph (1) of
25                subsection (c) of Section 1-75 of the Illinois
26                Power Agency Act.

 

 

SB3957- 335 -LRB103 40954 SPS 74001 b

1                    (cc) Identify the process whereby the
2                Agency will submit to the Commission for
3                review and approval the proposed contracts to
4                implement the programs required by such plan.
5                Copies of the initial long-term renewable
6            resources procurement plan and all subsequent
7            revisions shall be posted and made publicly
8            available on the Agency's and Commission's
9            websites, and copies shall also be provided to
10            each affected electric utility. An affected
11            utility and other interested parties shall have 45
12            days following the date of posting to provide
13            comment to the Agency on the initial long-term
14            renewable resources procurement plan and all
15            subsequent revisions. All comments submitted to
16            the Agency shall be specific, supported by data or
17            other detailed analyses, and, if objecting to all
18            or a portion of the procurement plan, accompanied
19            by specific alternative wording or proposals. All
20            comments shall be posted on the Agency's and
21            Commission's websites. During this 45-day comment
22            period, the Agency shall hold at least one public
23            hearing within each utility's service area that is
24            subject to the requirements of this paragraph (5)
25            for the purpose of receiving public comment.
26            Within 21 days following the end of the 45-day

 

 

SB3957- 336 -LRB103 40954 SPS 74001 b

1            review period, the Agency may revise the long-term
2            renewable resources procurement plan based on the
3            comments received and shall file the plan with the
4            Commission for review and approval.
5                (C) Within 14 days after the filing of the
6            initial long-term renewable resources procurement
7            plan or any subsequent revisions, any person
8            objecting to the plan may file an objection with
9            the Commission. Within 21 days after the filing of
10            the plan, the Commission shall determine whether a
11            hearing is necessary. The Commission shall enter
12            its order confirming or modifying the initial
13            long-term renewable resources procurement plan or
14            any subsequent revisions within 120 days after the
15            filing of the plan by the Illinois Power Agency.
16                (D) The Commission shall approve the initial
17            long-term renewable resources procurement plan and
18            any subsequent revisions, including expressly the
19            forecast used in the plan and taking into account
20            that funding will be limited to the amount of
21            revenues actually collected by the utilities, if
22            the Commission determines that the plan will
23            reasonably and prudently accomplish the
24            requirements of Section 1-56 and subsection (c) of
25            Section 1-75 of the Illinois Power Agency Act. The
26            Commission shall also approve the process for the

 

 

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1            submission, review, and approval of the proposed
2            contracts to procure renewable energy credits or
3            implement the programs authorized by the
4            Commission pursuant to a long-term renewable
5            resources procurement plan approved under this
6            Section.
7                In approving any long-term renewable resources
8            procurement plan after the effective date of this
9            amendatory Act of the 102nd General Assembly, the
10            Commission shall approve or modify the Agency's
11            proposal for minimum equity standards pursuant to
12            subsection (c-10) of Section 1-75 of the Illinois
13            Power Agency Act. The Commission shall consider
14            any analysis performed by the Agency in developing
15            its proposal, including past performance,
16            availability of equity eligible contractors, and
17            availability of equity eligible persons at the
18            time the long-term renewable resources procurement
19            plan is approved.
20            (iii) The Agency or third parties contracted by
21        the Agency shall implement all programs authorized by
22        the Commission in an approved long-term renewable
23        resources procurement plan without further review and
24        approval by the Commission. Third parties shall not
25        begin implementing any programs or receive any payment
26        under this Section until the Commission has approved

 

 

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1        the contract or contracts under the process authorized
2        by the Commission in item (D) of subparagraph (ii) of
3        paragraph (5) of this subsection (b) and the third
4        party and the Agency or utility, as applicable, have
5        executed the contract. For those renewable energy
6        credits subject to procurement through a competitive
7        bid process under the plan or under the initial
8        forward procurements for wind and solar resources
9        described in subparagraph (G) of paragraph (1) of
10        subsection (c) of Section 1-75 of the Illinois Power
11        Agency Act, the Agency shall follow the procurement
12        process specified in the provisions relating to
13        electricity procurement in subsections (e) through (i)
14        of this Section.
15            (iv) An electric utility shall recover its costs
16        associated with the procurement of renewable energy
17        credits under this Section and pursuant to subsection
18        (c-5) of Section 1-75 of the Illinois Power Agency Act
19        through an automatic adjustment clause tariff under
20        subsection (k) or a tariff pursuant to subsection
21        (i-5), as applicable, of Section 16-108 of this Act. A
22        utility shall not be required to advance any payment
23        or pay any amounts under this Section that exceed the
24        actual amount of revenues collected by the utility
25        under paragraph (6) of subsection (c) of Section 1-75
26        of the Illinois Power Agency Act, subsection (c-5) of

 

 

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1        Section 1-75 of the Illinois Power Agency Act, and
2        subsection (k) or subsection (i-5), as applicable, of
3        Section 16-108 of this Act, and contracts executed
4        under this Section shall expressly incorporate this
5        limitation.
6            (v) For the public interest, safety, and welfare,
7        the Agency and the Commission may adopt rules to carry
8        out the provisions of this Section on an emergency
9        basis immediately following the effective date of this
10        amendatory Act of the 99th General Assembly.
11            (vi) On or before July 1 of each year, the
12        Commission shall hold an informal hearing for the
13        purpose of receiving comments on the prior year's
14        procurement process and any recommendations for
15        change.
16        (6) Long-term energy storage resources procurement
17    plan. The Agency shall prepare an energy storage resources
18    procurement plan for the procurement of energy storage
19    credits in compliance with this Section and Section 1-93
20    of the Illinois Power Agency Act.
21            (i) The initial energy storage resources
22        procurement plan and all subsequent revisions shall be
23        subject to review and approval by the Commission. For
24        purposes of this Section, "delivery year" has the same
25        meaning as in Section 1-10 of the Illinois Power
26        Agency Act. In this paragraph, "Agency" means the

 

 

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1        Illinois Power Agency.
2            (ii) The energy storage resources planning process
3        shall be conducted as follows:
4                (A) The Agency shall publish for comment the
5            initial energy storage resources procurement plan
6            no later than 180 days after the effective date of
7            this amendatory Act of the 103rd General Assembly
8            and shall review, and may revise, the plan at
9            least every 2 years thereafter. To the extent
10            practicable, the Agency shall review and propose
11            any revisions to the energy storage resources
12            procurement plan in conjunction with the Agency's
13            other planning and approval processes conducted
14            under this Section. The initial energy storage
15            resources procurement plan shall:
16                    (aa) include a schedule for procurements
17                for energy storage credits from qualified
18                energy storage systems consistent with Section
19                1-93 of the Illinois Power Agency Act,
20                including proposals for allocation between
21                indexed credits and tolling agreements;
22                    (bb) identify the process whereby the
23                Agency will submit to the Commission for
24                review and approval the proposed contracts to
25                implement the programs required by the plan.
26                Copies of the initial energy storage resources

 

 

SB3957- 341 -LRB103 40954 SPS 74001 b

1                procurement plan and all subsequent revisions
2                shall be posted and made publicly available on
3                the Agency's and Commission's websites, and
4                copies shall also be provided to each affected
5                electric utility. An affected utility and
6                other interested parties shall have 45 days
7                following the date of posting to provide
8                comment to the Agency on the initial energy
9                storage resources procurement plan and all
10                subsequent revisions. All comments shall be
11                posted on the Agency's and Commission's
12                websites; and
13                    (cc) upon solicitation from stakeholders,
14                consider additional procurement approaches
15                that would result in the electric utilities
16                contracting for energy storage to achieve the
17                requirements described in subsection (a); and
18                (B) The Commission shall approve the initial
19            energy storage resources procurement plan and any
20            subsequent revisions if the Commission determines
21            that the plan will reasonably and prudently
22            accomplish the requirements of Section 1-93 of the
23            Illinois Power Agency Act. The Commission shall
24            also approve the process for the submission,
25            review, and approval of the proposed contracts to
26            procure energy storage credits or implement the

 

 

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1            programs authorized by the Commission pursuant to
2            a long-term energy storage resources procurement
3            plan approved under this Section.
4                In approving any long-term energy storage
5            procurement plan after the effective date of this
6            amendatory Act of the 103rd General Assembly, the
7            Commission shall approve or modify the Agency's
8            proposal for minimum equity standards pursuant to
9            subsection (c-10) of Section 1-75 of the Illinois
10            Power Agency Act. The Commission shall consider
11            any analysis performed by the Agency in developing
12            its proposal, including past performance,
13            availability of equity eligible contractors, and
14            availability of equity eligible persons at the
15            time the long-term renewable resources procurement
16            plan is approved.
17            (iii) The Agency or third parties contracted by
18        the Agency shall implement all programs authorized by
19        the Commission in an approved long-term energy storage
20        procurement plan without further review and approval
21        by the Commission. Third parties shall not begin
22        implementing any programs or receive any payment under
23        this Section until the Commission has approved the
24        long-term storage contract.
25            (iv) An electric utility shall recover its costs
26        associated with the procurement of energy storage

 

 

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1        credits under this Section and pursuant to Section
2        1-93 of the Illinois Power Agency Act through an
3        automatic adjustment clause tariff under subsection
4        (k) or a tariff pursuant to subsection (i-5), as
5        applicable, of Section 16-108.
6    (b-5) An electric utility that as of January 1, 2019
7served more than 300,000 retail customers in this State shall
8purchase renewable energy credits from new renewable energy
9facilities constructed at or adjacent to the sites of
10coal-fueled electric generating facilities in this State in
11accordance with subsection (c-5) of Section 1-75 of the
12Illinois Power Agency Act. Except as expressly provided in
13this Section, the plans and procedures for such procurements
14shall not be included in the procurement plans provided for in
15this Section, but rather shall be conducted and implemented
16solely in accordance with subsection (c-5) of Section 1-75 of
17the Illinois Power Agency Act.
18    (c) The provisions of this subsection (c) shall not apply
19to procurements conducted pursuant to subsection (c-5) of
20Section 1-75 of the Illinois Power Agency Act. However, the
21Agency may retain a procurement administrator to assist the
22Agency in planning and carrying out the procurement events and
23implementing the other requirements specified in such
24subsection (c-5) of Section 1-75 of the Illinois Power Agency
25Act, with the costs incurred by the Agency for the procurement
26administrator to be recovered through fees charged to

 

 

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1applicants for selection to sell and deliver renewable energy
2credits to electric utilities pursuant to subsection (c-5) of
3Section 1-75 of the Illinois Power Agency Act. The procurement
4process set forth in Section 1-75 of the Illinois Power Agency
5Act and subsection (e) of this Section shall be administered
6by a procurement administrator and monitored by a procurement
7monitor.
8        (1) The procurement administrator shall:
9            (i) design the final procurement process in
10        accordance with Section 1-75 of the Illinois Power
11        Agency Act and subsection (e) of this Section
12        following Commission approval of the procurement plan;
13            (ii) develop benchmarks in accordance with
14        subsection (e)(3) to be used to evaluate bids; these
15        benchmarks shall be submitted to the Commission for
16        review and approval on a confidential basis prior to
17        the procurement event;
18            (iii) serve as the interface between the electric
19        utility and suppliers;
20            (iv) manage the bidder pre-qualification and
21        registration process;
22            (v) obtain the electric utilities' agreement to
23        the final form of all supply contracts and credit
24        collateral agreements;
25            (vi) administer the request for proposals process;
26            (vii) have the discretion to negotiate to

 

 

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1        determine whether bidders are willing to lower the
2        price of bids that meet the benchmarks approved by the
3        Commission; any post-bid negotiations with bidders
4        shall be limited to price only and shall be completed
5        within 24 hours after opening the sealed bids and
6        shall be conducted in a fair and unbiased manner; in
7        conducting the negotiations, there shall be no
8        disclosure of any information derived from proposals
9        submitted by competing bidders; if information is
10        disclosed to any bidder, it shall be provided to all
11        competing bidders;
12            (viii) maintain confidentiality of supplier and
13        bidding information in a manner consistent with all
14        applicable laws, rules, regulations, and tariffs;
15            (ix) submit a confidential report to the
16        Commission recommending acceptance or rejection of
17        bids;
18            (x) notify the utility of contract counterparties
19        and contract specifics; and
20            (xi) administer related contingency procurement
21        events.
22        (2) The procurement monitor, who shall be retained by
23    the Commission, shall:
24            (i) monitor interactions among the procurement
25        administrator, suppliers, and utility;
26            (ii) monitor and report to the Commission on the

 

 

SB3957- 346 -LRB103 40954 SPS 74001 b

1        progress of the procurement process;
2            (iii) provide an independent confidential report
3        to the Commission regarding the results of the
4        procurement event;
5            (iv) assess compliance with the procurement plans
6        approved by the Commission for each utility that on
7        December 31, 2005 provided electric service to at
8        least 100,000 customers in Illinois and for each small
9        multi-jurisdictional utility that on December 31, 2005
10        served less than 100,000 customers in Illinois;
11            (v) preserve the confidentiality of supplier and
12        bidding information in a manner consistent with all
13        applicable laws, rules, regulations, and tariffs;
14            (vi) provide expert advice to the Commission and
15        consult with the procurement administrator regarding
16        issues related to procurement process design, rules,
17        protocols, and policy-related matters; and
18            (vii) consult with the procurement administrator
19        regarding the development and use of benchmark
20        criteria, standard form contracts, credit policies,
21        and bid documents.
22    (d) Except as provided in subsection (j), the planning
23process shall be conducted as follows:
24        (1) Beginning in 2008, each Illinois utility procuring
25    power pursuant to this Section shall annually provide a
26    range of load forecasts to the Illinois Power Agency by

 

 

SB3957- 347 -LRB103 40954 SPS 74001 b

1    July 15 of each year, or such other date as may be required
2    by the Commission or Agency. The load forecasts shall
3    cover the 5-year procurement planning period for the next
4    procurement plan and shall include hourly data
5    representing a high-load, low-load, and expected-load
6    scenario for the load of those retail customers included
7    in the plan's electric supply service requirements. The
8    utility shall provide supporting data and assumptions for
9    each of the scenarios.
10        (2) Beginning in 2008, the Illinois Power Agency shall
11    prepare a procurement plan by August 15th of each year, or
12    such other date as may be required by the Commission. The
13    procurement plan shall identify the portfolio of
14    demand-response and power and energy products to be
15    procured. Cost-effective demand-response measures shall be
16    procured as set forth in item (iii) of subsection (b) of
17    this Section. Copies of the procurement plan shall be
18    posted and made publicly available on the Agency's and
19    Commission's websites, and copies shall also be provided
20    to each affected electric utility. An affected utility
21    shall have 30 days following the date of posting to
22    provide comment to the Agency on the procurement plan.
23    Other interested entities also may comment on the
24    procurement plan. All comments submitted to the Agency
25    shall be specific, supported by data or other detailed
26    analyses, and, if objecting to all or a portion of the

 

 

SB3957- 348 -LRB103 40954 SPS 74001 b

1    procurement plan, accompanied by specific alternative
2    wording or proposals. All comments shall be posted on the
3    Agency's and Commission's websites. During this 30-day
4    comment period, the Agency shall hold at least one public
5    hearing within each utility's service area for the purpose
6    of receiving public comment on the procurement plan.
7    Within 14 days following the end of the 30-day review
8    period, the Agency shall revise the procurement plan as
9    necessary based on the comments received and file the
10    procurement plan with the Commission and post the
11    procurement plan on the websites.
12        (3) Within 5 days after the filing of the procurement
13    plan, any person objecting to the procurement plan shall
14    file an objection with the Commission. Within 10 days
15    after the filing, the Commission shall determine whether a
16    hearing is necessary. The Commission shall enter its order
17    confirming or modifying the procurement plan within 90
18    days after the filing of the procurement plan by the
19    Illinois Power Agency.
20        (4) The Commission shall approve the procurement plan,
21    including expressly the forecast used in the procurement
22    plan, if the Commission determines that it will ensure
23    adequate, reliable, affordable, efficient, and
24    environmentally sustainable electric service at the lowest
25    total cost over time, taking into account any benefits of
26    price stability.

 

 

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1        (4.5) The Commission shall review the Agency's
2    recommendations for the selection of applicants to enter
3    into long-term contracts for the sale and delivery of
4    renewable energy credits from new renewable energy
5    facilities to be constructed at or adjacent to the sites
6    of coal-fueled electric generating facilities in this
7    State in accordance with the provisions of subsection
8    (c-5) of Section 1-75 of the Illinois Power Agency Act,
9    and shall approve the Agency's recommendations if the
10    Commission determines that the applicants recommended by
11    the Agency for selection, the proposed new renewable
12    energy facilities to be constructed, the amounts of
13    renewable energy credits to be delivered pursuant to the
14    contracts, and the other terms of the contracts, are
15    consistent with the requirements of subsection (c-5) of
16    Section 1-75 of the Illinois Power Agency Act.
17    (e) The procurement process shall include each of the
18following components:
19        (1) Solicitation, pre-qualification, and registration
20    of bidders. The procurement administrator shall
21    disseminate information to potential bidders to promote a
22    procurement event, notify potential bidders that the
23    procurement administrator may enter into a post-bid price
24    negotiation with bidders that meet the applicable
25    benchmarks, provide supply requirements, and otherwise
26    explain the competitive procurement process. In addition

 

 

SB3957- 350 -LRB103 40954 SPS 74001 b

1    to such other publication as the procurement administrator
2    determines is appropriate, this information shall be
3    posted on the Illinois Power Agency's and the Commission's
4    websites. The procurement administrator shall also
5    administer the prequalification process, including
6    evaluation of credit worthiness, compliance with
7    procurement rules, and agreement to the standard form
8    contract developed pursuant to paragraph (2) of this
9    subsection (e). The procurement administrator shall then
10    identify and register bidders to participate in the
11    procurement event.
12        (2) Standard contract forms and credit terms and
13    instruments. The procurement administrator, in
14    consultation with the utilities, the Commission, and other
15    interested parties and subject to Commission oversight,
16    shall develop and provide standard contract forms for the
17    supplier contracts that meet generally accepted industry
18    practices. Standard credit terms and instruments that meet
19    generally accepted industry practices shall be similarly
20    developed. The procurement administrator shall make
21    available to the Commission all written comments it
22    receives on the contract forms, credit terms, or
23    instruments. If the procurement administrator cannot reach
24    agreement with the applicable electric utility as to the
25    contract terms and conditions, the procurement
26    administrator must notify the Commission of any disputed

 

 

SB3957- 351 -LRB103 40954 SPS 74001 b

1    terms and the Commission shall resolve the dispute. Except
2    as provided under item (vi) of subparagraph (G) of
3    paragraph (1) of subsection (c) of Section 1-75 of the
4    Illinois Power Agency Act, the The terms of the contracts
5    shall not be subject to negotiation by winning bidders,
6    and the bidders must agree to the terms of the contract in
7    advance so that winning bids are selected solely on the
8    basis of price.
9        (3) Establishment of a market-based price benchmark.
10    As part of the development of the procurement process, the
11    procurement administrator, in consultation with the
12    Commission staff, Agency staff, and the procurement
13    monitor, shall establish benchmarks for evaluating the
14    final prices in the contracts for each of the products
15    that will be procured through the procurement process. The
16    benchmarks shall be based on price data for similar
17    products for the same delivery period and same delivery
18    hub, or other delivery hubs after adjusting for that
19    difference. The price benchmarks may also be adjusted to
20    take into account differences between the information
21    reflected in the underlying data sources and the specific
22    products and procurement process being used to procure
23    power for the Illinois utilities. The benchmarks shall be
24    confidential but shall be provided to, and will be subject
25    to Commission review and approval, prior to a procurement
26    event.

 

 

SB3957- 352 -LRB103 40954 SPS 74001 b

1        (4) Request for proposals competitive procurement
2    process. The procurement administrator shall design and
3    issue a request for proposals to supply electricity in
4    accordance with each utility's procurement plan, as
5    approved by the Commission. The request for proposals
6    shall set forth a procedure for sealed, binding commitment
7    bidding with pay-as-bid settlement, and provision for
8    selection of bids on the basis of price.
9        (5) A plan for implementing contingencies in the event
10    of supplier default or failure of the procurement process
11    to fully meet the expected load requirement due to
12    insufficient supplier participation, Commission rejection
13    of results, or any other cause.
14            (i) Event of supplier default: In the event of
15        supplier default, the utility shall review the
16        contract of the defaulting supplier to determine if
17        the amount of supply is 200 megawatts or greater, and
18        if there are more than 60 days remaining of the
19        contract term. If both of these conditions are met,
20        and the default results in termination of the
21        contract, the utility shall immediately notify the
22        Illinois Power Agency that a request for proposals
23        must be issued to procure replacement power, and the
24        procurement administrator shall run an additional
25        procurement event. If the contracted supply of the
26        defaulting supplier is less than 200 megawatts or

 

 

SB3957- 353 -LRB103 40954 SPS 74001 b

1        there are less than 60 days remaining of the contract
2        term, the utility shall procure power and energy from
3        the applicable regional transmission organization
4        market, including ancillary services, capacity, and
5        day-ahead or real time energy, or both, for the
6        duration of the contract term to replace the
7        contracted supply; provided, however, that if a needed
8        product is not available through the regional
9        transmission organization market it shall be purchased
10        from the wholesale market.
11            (ii) Failure of the procurement process to fully
12        meet the expected load requirement: If the procurement
13        process fails to fully meet the expected load
14        requirement due to insufficient supplier participation
15        or due to a Commission rejection of the procurement
16        results, the procurement administrator, the
17        procurement monitor, and the Commission staff shall
18        meet within 10 days to analyze potential causes of low
19        supplier interest or causes for the Commission
20        decision. If changes are identified that would likely
21        result in increased supplier participation, or that
22        would address concerns causing the Commission to
23        reject the results of the prior procurement event, the
24        procurement administrator may implement those changes
25        and rerun the request for proposals process according
26        to a schedule determined by those parties and

 

 

SB3957- 354 -LRB103 40954 SPS 74001 b

1        consistent with Section 1-75 of the Illinois Power
2        Agency Act and this subsection. In any event, a new
3        request for proposals process shall be implemented by
4        the procurement administrator within 90 days after the
5        determination that the procurement process has failed
6        to fully meet the expected load requirement.
7            (iii) In all cases where there is insufficient
8        supply provided under contracts awarded through the
9        procurement process to fully meet the electric
10        utility's load requirement, the utility shall meet the
11        load requirement by procuring power and energy from
12        the applicable regional transmission organization
13        market, including ancillary services, capacity, and
14        day-ahead or real time energy, or both; provided,
15        however, that if a needed product is not available
16        through the regional transmission organization market
17        it shall be purchased from the wholesale market.
18        (6) The procurement processes described in this
19    subsection and in subsection (c-5) of Section 1-75 of the
20    Illinois Power Agency Act are exempt from the requirements
21    of the Illinois Procurement Code, pursuant to Section
22    20-10 of that Code.
23    (f) Within 2 business days after opening the sealed bids,
24the procurement administrator shall submit a confidential
25report to the Commission. The report shall contain the results
26of the bidding for each of the products along with the

 

 

SB3957- 355 -LRB103 40954 SPS 74001 b

1procurement administrator's recommendation for the acceptance
2and rejection of bids based on the price benchmark criteria
3and other factors observed in the process. The procurement
4monitor also shall submit a confidential report to the
5Commission within 2 business days after opening the sealed
6bids. The report shall contain the procurement monitor's
7assessment of bidder behavior in the process as well as an
8assessment of the procurement administrator's compliance with
9the procurement process and rules. The Commission shall review
10the confidential reports submitted by the procurement
11administrator and procurement monitor, and shall accept or
12reject the recommendations of the procurement administrator
13within 2 business days after receipt of the reports.
14    (g) Within 3 business days after the Commission decision
15approving the results of a procurement event, the utility
16shall enter into binding contractual arrangements with the
17winning suppliers using the standard form contracts; except
18that the utility shall not be required either directly or
19indirectly to execute the contracts if a tariff that is
20consistent with subsection (l) of this Section has not been
21approved and placed into effect for that utility.
22    (h) For the procurement of standard wholesale products and
23energy storage capacity, the names of the successful bidders
24and the load weighted average of the winning bid prices for
25each contract type and for each contract term shall be made
26available to the public at the time of Commission approval of a

 

 

SB3957- 356 -LRB103 40954 SPS 74001 b

1procurement event. For procurements conducted to meet the
2requirements of subsection (b) of Section 1-56 or subsection
3(c) of Section 1-75 of the Illinois Power Agency Act governed
4by the provisions of this Section, the address and nameplate
5capacity of the new renewable energy generating facility
6proposed by a winning bidder shall also be made available to
7the public at the time of Commission approval of a procurement
8event, along with the business address and contact information
9for any winning bidder. An estimate or approximation of the
10nameplate capacity of the new renewable energy generating
11facility may be disclosed if necessary to protect the
12confidentiality of individual bid prices.
13    The Commission, the procurement monitor, the procurement
14administrator, the Illinois Power Agency, and all participants
15in the procurement process shall maintain the confidentiality
16of all other supplier and bidding information in a manner
17consistent with all applicable laws, rules, regulations, and
18tariffs. Confidential information, including the confidential
19reports submitted by the procurement administrator and
20procurement monitor pursuant to subsection (f) of this
21Section, shall not be made publicly available and shall not be
22discoverable by any party in any proceeding, absent a
23compelling demonstration of need, nor shall those reports be
24admissible in any proceeding other than one for law
25enforcement purposes.
26    (h-5) For procurements conducted to meet the requirements

 

 

SB3957- 357 -LRB103 40954 SPS 74001 b

1of subsection (b) of Section 1-56 or subsection (c) of Section
21-75 of the Illinois Power Agency Act, the Illinois Power
3Agency shall release aggregated information related to
4participation levels across product types and the basis of
5rejection for non-accepted bids if the Commission, the
6procurement monitor, the procurement administrator, and the
7Illinois Power Agency determine that the release of this
8information would not result in the disclosure of confidential
9bid information or negatively impact the competitiveness of
10future renewable energy credit procurements.
11    (i) Within 2 business days after a Commission decision
12approving the results of a procurement event or such other
13date as may be required by the Commission from time to time,
14the utility shall file for informational purposes with the
15Commission its actual or estimated retail supply charges, as
16applicable, by customer supply group reflecting the costs
17associated with the procurement and computed in accordance
18with the tariffs filed pursuant to subsection (l) of this
19Section and approved by the Commission.
20    (j) Within 60 days following August 28, 2007 (the
21effective date of Public Act 95-481), each electric utility
22that on December 31, 2005 provided electric service to at
23least 100,000 customers in Illinois shall prepare and file
24with the Commission an initial procurement plan, which shall
25conform in all material respects to the requirements of the
26procurement plan set forth in subsection (b); provided,

 

 

SB3957- 358 -LRB103 40954 SPS 74001 b

1however, that the Illinois Power Agency Act shall not apply to
2the initial procurement plan prepared pursuant to this
3subsection. The initial procurement plan shall identify the
4portfolio of power and energy products to be procured and
5delivered for the period June 2008 through May 2009, and shall
6identify the proposed procurement administrator, who shall
7have the same experience and expertise as is required of a
8procurement administrator hired pursuant to Section 1-75 of
9the Illinois Power Agency Act. Copies of the procurement plan
10shall be posted and made publicly available on the
11Commission's website. The initial procurement plan may include
12contracts for renewable resources that extend beyond May 2009.
13        (i) Within 14 days following filing of the initial
14    procurement plan, any person may file a detailed objection
15    with the Commission contesting the procurement plan
16    submitted by the electric utility. All objections to the
17    electric utility's plan shall be specific, supported by
18    data or other detailed analyses. The electric utility may
19    file a response to any objections to its procurement plan
20    within 7 days after the date objections are due to be
21    filed. Within 7 days after the date the utility's response
22    is due, the Commission shall determine whether a hearing
23    is necessary. If it determines that a hearing is
24    necessary, it shall require the hearing to be completed
25    and issue an order on the procurement plan within 60 days
26    after the filing of the procurement plan by the electric

 

 

SB3957- 359 -LRB103 40954 SPS 74001 b

1    utility.
2        (ii) The order shall approve or modify the procurement
3    plan, approve an independent procurement administrator,
4    and approve or modify the electric utility's tariffs that
5    are proposed with the initial procurement plan. The
6    Commission shall approve the procurement plan if the
7    Commission determines that it will ensure adequate,
8    reliable, affordable, efficient, and environmentally
9    sustainable electric service at the lowest total cost over
10    time, taking into account any benefits of price stability.
11    (k) (Blank).
12    (k-5) (Blank).
13    (l) An electric utility shall recover its costs incurred
14under this Section and subsection (c-5) of Section 1-75 of the
15Illinois Power Agency Act, including, but not limited to, the
16costs of procuring power and energy demand-response resources
17under this Section and its costs for purchasing renewable
18energy credits pursuant to subsection (c-5) of Section 1-75 of
19the Illinois Power Agency Act. The utility shall file with the
20initial procurement plan its proposed tariffs through which
21its costs of procuring power that are incurred pursuant to a
22Commission-approved procurement plan and those other costs
23identified in this subsection (l), will be recovered. The
24tariffs shall include a formula rate or charge designed to
25pass through both the costs incurred by the utility in
26procuring a supply of electric power and energy for the

 

 

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1applicable customer classes with no mark-up or return on the
2price paid by the utility for that supply, plus any just and
3reasonable costs that the utility incurs in arranging and
4providing for the supply of electric power and energy. The
5formula rate or charge shall also contain provisions that
6ensure that its application does not result in over or under
7recovery due to changes in customer usage and demand patterns,
8and that provide for the correction, on at least an annual
9basis, of any accounting errors that may occur. A utility
10shall recover through the tariff all reasonable costs incurred
11to implement or comply with any procurement plan that is
12developed and put into effect pursuant to Section 1-75 of the
13Illinois Power Agency Act and this Section, and for the
14procurement of renewable energy credits pursuant to subsection
15(c-5) of Section 1-75 of the Illinois Power Agency Act,
16including any fees assessed by the Illinois Power Agency,
17costs associated with load balancing, and contingency plan
18costs. The electric utility shall also recover its full costs
19of procuring electric supply for which it contracted before
20the effective date of this Section in conjunction with the
21provision of full requirements service under fixed-price
22bundled service tariffs subsequent to December 31, 2006. All
23such costs shall be deemed to have been prudently incurred.
24The pass-through tariffs that are filed and approved pursuant
25to this Section shall not be subject to review under, or in any
26way limited by, Section 16-111(i) of this Act. All of the costs

 

 

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1incurred by the electric utility associated with the purchase
2of zero emission credits in accordance with subsection (d-5)
3of Section 1-75 of the Illinois Power Agency Act, all costs
4incurred by the electric utility associated with the purchase
5of carbon mitigation credits in accordance with subsection
6(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
7beginning June 1, 2017, all of the costs incurred by the
8electric utility associated with the purchase of renewable
9energy resources in accordance with Sections 1-56 and 1-75 of
10the Illinois Power Agency Act, and all of the costs incurred by
11the electric utility in purchasing renewable energy credits in
12accordance with subsection (c-5) of Section 1-75 of the
13Illinois Power Agency Act, and all costs incurred by the
14electric utility in purchasing energy storage credits in
15accordance with Section 1-93 of the Illinois Power Agency Act
16shall be recovered through the electric utility's tariffed
17charges applicable to all of its retail customers, as
18specified in subsection (k) or subsection (i-5), as
19applicable, of Section 16-108 of this Act, and shall not be
20recovered through the electric utility's tariffed charges for
21electric power and energy supply to its eligible retail
22customers.
23    (m) The Commission has the authority to adopt rules to
24carry out the provisions of this Section. For the public
25interest, safety, and welfare, the Commission also has
26authority to adopt rules to carry out the provisions of this

 

 

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1Section on an emergency basis immediately following August 28,
22007 (the effective date of Public Act 95-481).
3    (n) Notwithstanding any other provision of this Act, any
4affiliated electric utilities that submit a single procurement
5plan covering their combined needs may procure for those
6combined needs in conjunction with that plan, and may enter
7jointly into power supply contracts, purchases, and other
8procurement arrangements, and allocate capacity and energy and
9cost responsibility therefor among themselves in proportion to
10their requirements.
11    (o) On or before June 1 of each year, the Commission shall
12hold an informal hearing for the purpose of receiving comments
13on the prior year's procurement process and any
14recommendations for change.
15    (p) An electric utility subject to this Section may
16propose to invest, lease, own, or operate an electric
17generation facility as part of its procurement plan, provided
18the utility demonstrates that such facility is the least-cost
19option to provide electric service to those retail customers
20included in the plan's electric supply service requirements.
21If the facility is shown to be the least-cost option and is
22included in a procurement plan prepared in accordance with
23Section 1-75 of the Illinois Power Agency Act and this
24Section, then the electric utility shall make a filing
25pursuant to Section 8-406 of this Act, and may request of the
26Commission any statutory relief required thereunder. If the

 

 

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1Commission grants all of the necessary approvals for the
2proposed facility, such supply shall thereafter be considered
3as a pre-existing contract under subsection (b) of this
4Section. The Commission shall in any order approving a
5proposal under this subsection specify how the utility will
6recover the prudently incurred costs of investing in, leasing,
7owning, or operating such generation facility through just and
8reasonable rates charged to those retail customers included in
9the plan's electric supply service requirements. Cost recovery
10for facilities included in the utility's procurement plan
11pursuant to this subsection shall not be subject to review
12under or in any way limited by the provisions of Section
1316-111(i) of this Act. Nothing in this Section is intended to
14prohibit a utility from filing for a fuel adjustment clause as
15is otherwise permitted under Section 9-220 of this Act.
16    (q) If the Illinois Power Agency filed with the
17Commission, under Section 16-111.5 of this Act, its proposed
18procurement plan for the period commencing June 1, 2017, and
19the Commission has not yet entered its final order approving
20the plan on or before the effective date of this amendatory Act
21of the 99th General Assembly, then the Illinois Power Agency
22shall file a notice of withdrawal with the Commission, after
23the effective date of this amendatory Act of the 99th General
24Assembly, to withdraw the proposed procurement of renewable
25energy resources to be approved under the plan, other than the
26procurement of renewable energy credits from distributed

 

 

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1renewable energy generation devices using funds previously
2collected from electric utilities' retail customers that take
3service pursuant to electric utilities' hourly pricing tariff
4or tariffs and, for an electric utility that serves less than
5100,000 retail customers in the State, other than the
6procurement of renewable energy credits from distributed
7renewable energy generation devices. Upon receipt of the
8notice, the Commission shall enter an order that approves the
9withdrawal of the proposed procurement of renewable energy
10resources from the plan. The initially proposed procurement of
11renewable energy resources shall not be approved or be the
12subject of any further hearing, investigation, proceeding, or
13order of any kind.
14    This amendatory Act of the 99th General Assembly preempts
15and supersedes any order entered by the Commission that
16approved the Illinois Power Agency's procurement plan for the
17period commencing June 1, 2017, to the extent it is
18inconsistent with the provisions of this amendatory Act of the
1999th General Assembly. To the extent any previously entered
20order approved the procurement of renewable energy resources,
21the portion of that order approving the procurement shall be
22void, other than the procurement of renewable energy credits
23from distributed renewable energy generation devices using
24funds previously collected from electric utilities' retail
25customers that take service under electric utilities' hourly
26pricing tariff or tariffs and, for an electric utility that

 

 

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1serves less than 100,000 retail customers in the State, other
2than the procurement of renewable energy credits for
3distributed renewable energy generation devices.
4(Source: P.A. 102-662, eff. 9-15-21.)
 
5    (220 ILCS 5/Art. XXIII heading new)
6
ARTICLE XXIII. OFFICE OF INTERCONNECTION AND RENEWABLE
7
DEVELOPMENT

 
8    (220 ILCS 5/23-101 new)
9    Sec. 23-101. Findings and intent. The General Assembly
10finds and declares:
11        (1) The ability of the Commission and the Illinois
12    Power Agency to ensure long-term benefits from community
13    renewable generation projects and distributed renewable
14    energy generation devices is limited. For Illinois
15    consumers to continue to receive the substantial financial
16    and environmental benefits of deployment of distributed
17    renewable generation resources, including devices paired
18    with energy storage, the Commission must gather additional
19    data and proactively identify barriers.
20        (2) To date, as a result of the Future Energy Jobs Act
21    and the Climate and Equitable Jobs Act, tens of thousands
22    of Illinois retail customers of all sizes have experienced
23    the benefits of new renewable generation.
24        (3) However, as renewable generation deployment

 

 

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1    increases, but remains short of the goals set by the
2    Climate and Equitable Jobs Act, it is critical that the
3    Commission proactively identify and address barriers to
4    achieving those goals.
5        (4) The Illinois Commerce Commission should promote
6    the efficient deployment of distributed renewable
7    generation resources.
 
8    (220 ILCS 5/23-105 new)
9    Sec. 23-105. Definitions. In this Article:
10    "Director" means the Director of the Office of
11Interconnection and Renewable Development.
12    "Distributed renewable energy resources" means a community
13renewable generation device or a distributed renewable energy
14generation device as those terms are defined in Section 1-10
15of the Illinois Power Agency Act. "Distributed renewable
16energy resource" includes storage paired with a community
17renewable generation device or a distributed renewable energy
18generation device.
19    "Energy storage system" shall have the meaning given in
20Section 1-10 of the Illinois Power Agency Act.
21    "Office" means the Office of Interconnection and Renewable
22Development.
23    "Utility-scale solar project" and "utility-scale wind
24project" have the meanings given to those terms in Section
251-10 of the Illinois Power Agency Act.
 

 

 

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1    (220 ILCS 5/23-110 new)
2    Sec. 23-110. Office of Interconnection and Renewable
3Development.
4    (a) Within 90 days after the effective date of this
5amendatory Act of the 103rd General Assembly, subject to
6appropriation, the Commission shall establish an Office of
7Interconnection and Renewable Development and employ a
8Director of Interconnection and Renewable Development to
9oversee the Office. The Director shall have authority to
10employ or otherwise retain at least 3 professionals dedicated
11to the task of actively seeking out ways to identify barriers
12to deployment of distributed renewable energy resources.
13    (b) The Office shall actively seek input from all
14interested parties and shall develop a thorough understanding
15and critical analyses of the tools and techniques used to
16promote development and remove barriers to development of the
17projects and devices. The Office shall take these steps for
18interconnections involving distributed renewable energy
19resources, energy storage systems, utility-scale wind
20projects, and utility-scale solar projects, including
21interconnections to a distribution system or a transmission
22system.
23    (c) The Office shall monitor interconnection between
24electric utilities and applicants for interconnection and
25interconnection customers. The Office shall request, and

 

 

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1electric utilities shall promptly provide, information and
2records related to pending, successful, and terminated
3interconnections. The Office shall include at least one
4employee with a background in engineering of distribution
5interconnections. The Office shall take these steps for
6interconnections involving distributed renewable energy
7resources, energy storage systems, utility-scale wind
8projects, and utility-scale solar projects, including
9interconnections to a distribution system or a transmission
10system.
11    (d) The Office shall employ an Ombudsperson who, in
12addition to the roles described in paragraph (2) of subsection
13(h-5) of Section 16-107.5, is responsible for oversight of all
14utility's compliance with the rules adopted under subsection
15(h) of Section 16-107.5 and any utility interconnection
16policies or procedures. The Ombudsperson may request, and each
17electric utility shall timely provide, records and information
18as the Ombudsperson may request from time to time to carry out
19his or her duties under this subsection or subsection (m) of
20Section 1-93 of the Illinois Power Agency Act. At any time, the
21Ombudsperson may issue a report to the Commission detailing
22any suspected violations of this Act or rules adopted by the
23Commission under this Act concerning interconnection processes
24or a particular interconnection.
 
25    (220 ILCS 5/23-115 new)

 

 

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1    Sec. 23-115. Annual report. The Office shall collect and
2annually report to the Commission information about net
3metering under Section 16-107.5. The Office shall quantify the
4totality of retail customer benefits from net metering,
5including an assessment of customer value from net metering
6and net metering offered under subsection (l) of Section
716-107.5. The Office shall include information about
8distributed renewable energy resources outside of Illinois
9Power Agency programs and procurements identified in Sections
101-56 and 1-75 of the Illinois Power Agency Act.
 
11    (220 ILCS 5/23-120 new)
12    Sec. 23-120. Interconnection Working Group.
13    (a) The Ombudsperson shall provide to the Commission with
14a biennial update on consensus and non-consensus items
15addressed in the Interconnection Working Group. The
16Ombudsperson shall provide recommendations for Commission
17actions and the proposed timing of the actions based on the
18findings of the Interconnection Working Group.
19    (b) In collaboration with the Ethics Officer of the
20Commission, the Office shall develop policies and procedures
21to facilitate employees of the Office in leading the
22Interconnection Working Group described in subsection (h-5) of
23Section 16-107.5 without interference with docketed
24proceedings. The policies and procedures developed under this
25subsection shall be designed to allow the Interconnection

 

 

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1Working Group to work without interruption.

 

 

SB3957- 371 -LRB103 40954 SPS 74001 b

1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 3855/1-5
4    20 ILCS 3855/1-10
5    20 ILCS 3855/1-20
6    20 ILCS 3855/1-75
7    20 ILCS 3855/1-93 new
8    20 ILCS 3855/1-94 new
9    220 ILCS 5/8-513 new
10    220 ILCS 5/16-107.5
11    220 ILCS 5/16-107.6
12    220 ILCS 5/16-107.9 new
13    220 ILCS 5/16-107.10 new
14    220 ILCS 5/16-107.11 new
15    220 ILCS 5/16-108
16    220 ILCS 5/16-111.5
17    220 ILCS 5/Art. XXIII
18    heading new
19    220 ILCS 5/23-101 new
20    220 ILCS 5/23-105 new
21    220 ILCS 5/23-110 new
22    220 ILCS 5/23-115 new
23    220 ILCS 5/23-120 new