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Rep. Robert Rita
Filed: 11/28/2016
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1 | | AMENDMENT TO SENATE BILL 2814
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2 | | AMENDMENT NO. ______. Amend Senate Bill 2814, AS AMENDED, |
3 | | by replacing everything after the enacting clause with the |
4 | | following:
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5 | | "Section 1. Findings.
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6 | | (a) In 2011, the General Assembly encouraged and enabled |
7 | | the State's largest electric utilities to undertake |
8 | | substantial investment to refurbish, rebuild, modernize, and |
9 | | expand Illinois' century-old electric grid. Among those |
10 | | investments were the deployment of a smart grid and advanced |
11 | | metering infrastructure platform that would be accessible to |
12 | | all retail customers through new, digital smart meters. This |
13 | | investment, now well underway, not only allows utilities to |
14 | | continue to provide safe, reliable, and affordable service to |
15 | | the State's current and future utility customers, but also |
16 | | empowers the citizens of this State to directly access and |
17 | | participate in the rapidly emerging clean energy economy while |
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1 | | also presenting them with unprecedented choices in their source |
2 | | of energy supply and pricing. |
3 | | To ensure that the State and its citizens, including |
4 | | low-income citizens, are equipped to enjoy the opportunities |
5 | | and benefits of the smart grid and evolving clean energy |
6 | | marketplace, the General Assembly finds and declares that |
7 | | Illinois should continue in its efforts to build the grid of |
8 | | the future using the smart grid and advanced metering |
9 | | infrastructure platform, as well as maximize the impact of the |
10 | | State's existing energy efficiency and renewable energy |
11 | | portfolio standards. Specifically, the Generally Assembly |
12 | | finds that:
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13 | | (1) the State should encourage: the adoption and |
14 | | deployment of cost-effective distributed energy resource |
15 | | technologies and devices, such as photovoltaics, which can |
16 | | encourage private investment in renewable energy |
17 | | resources, stimulate economic growth, enhance the |
18 | | continued diversification of Illinois' energy resource |
19 | | mix, and protect the Illinois environment; investment in |
20 | | renewable energy resources, including, but not limited to, |
21 | | photovoltaic distributed generation, which should benefit |
22 | | all citizens of the State, including low-income |
23 | | households;
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24 | | (2) the State's existing energy efficiency standard |
25 | | should be updated to ensure that customers continue to |
26 | | realize increased value, to incorporate and optimize |
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1 | | measures enabled by the smart grid, including voltage |
2 | | optimization measures, and to provide incentives for |
3 | | electric utilities to achieve the energy savings goals; and
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4 | | (3) the State's electric utilities should initiate |
5 | | programs to study the benefits of smart-grid enabled |
6 | | technologies, including, but not limited to, deploying |
7 | | microgrids. Such programs are not required to be cost |
8 | | effective so long as a goal of the program is to analyze |
9 | | cost effectiveness. The costs to implement, manage, and |
10 | | analyze such programs shall be recovered through delivery |
11 | | service rates.
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12 | | (b) The General Assembly further finds that the expansion |
13 | | of distributed generation technologies and devices across the |
14 | | State necessarily disrupts existing electricity generation and |
15 | | distribution models and frameworks, including related rate and |
16 | | tariff schedules, which can lead to
inequitable charges, |
17 | | especially for low-income customers who often encounter the |
18 | | most substantial obstacles to adopting costly distributed |
19 | | generation technologies and devices. As a result, the General |
20 | | Assembly finds that low-income customers should be included |
21 | | within the State's efforts to expand the use of distributed |
22 | | generation technologies and devices. To address these issues, |
23 | | electric utilities should also be permitted to file revised |
24 | | tariffs. These changes should be designed to ensure both an |
25 | | equitable allocation of costs so that no customers have to pay |
26 | | more than their fair share of these costs and that all costs |
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1 | | are recovered, thus ensuring better and more equitable access |
2 | | to distributed generation and other energy options. |
3 | | Section 1.5. Zero emission standard legislative findings. |
4 | | The General Assembly finds and declares:
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5 | | (1) Reducing emissions of carbon dioxide and other air |
6 | | pollutants, such as sulfur oxides, nitrogen oxides, and |
7 | | particulate matter, is critical to improving air quality in |
8 | | Illinois for Illinois residents.
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9 | | (2) Sulfur oxides, nitrogen oxides, and particulate |
10 | | emissions have significant adverse health effects on |
11 | | persons exposed to them, and carbon dioxide emissions |
12 | | result in climate change trends that could significantly |
13 | | adversely impact Illinois.
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14 | | (3) The existing renewable portfolio standard has been |
15 | | successful in promoting the growth of renewable energy |
16 | | generation to reduce air pollution in Illinois. However, to |
17 | | achieve its environmental goals, Illinois must expand its |
18 | | commitment to zero emission energy generation and value the |
19 | | environmental attributes of zero emission generation that |
20 | | currently falls outside the scope of the existing renewable |
21 | | portfolio standard, including, but not limited to, nuclear |
22 | | power.
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23 | | (4) Preserving existing zero emission energy |
24 | | generation and promoting new zero emission energy |
25 | | generation is vital to placing the State on a glide path to |
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1 | | achieving its environmental goals and ensuring that air |
2 | | quality in Illinois continues to improve.
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3 | | (5) The Illinois Commerce Commission, the Illinois |
4 | | Power Agency, the Illinois Environmental Protection |
5 | | Agency, and the Department of Commerce and Economic |
6 | | Opportunity issued a report dated January 5, 2015 titled |
7 | | "Potential Nuclear Power Plant Closings in Illinois" (the |
8 | | Report), which addressed the issues identified by Illinois |
9 | | House Resolution 1146 of the 98th General Assembly, which, |
10 | | among other things, urged the Illinois Environmental |
11 | | Protection Agency to prepare a report showing how the |
12 | | premature closure of existing nuclear power plants in |
13 | | Illinois will affect the societal cost of increased |
14 | | greenhouse gas emissions based upon the Environmental |
15 | | Protection Agency's published societal cost of greenhouse |
16 | | gases.
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17 | | (6) The Report also included analysis from PJM |
18 | | Interconnection, LLC, which identified significant adverse |
19 | | consequences for electric reliability, including |
20 | | significant voltage and thermal violations in the |
21 | | interstate transmission network, in the event that |
22 | | Illinois' existing nuclear facilities close prematurely. |
23 | | The Report also found that nuclear power plants are among |
24 | | the most reliable sources of energy, which means that |
25 | | electricity from nuclear power plants is available on the |
26 | | electric grid all hours of the day and when needed, thereby |
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1 | | always reducing carbon emissions.
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2 | | (7) Illinois House Resolution 1146 further urged that |
3 | | the Report make findings concerning potential market-based |
4 | | solutions that will ensure that the premature closure of |
5 | | these nuclear power plants does not occur and that the |
6 | | associated dire consequences to the environment, electric |
7 | | reliability, and the regional economy are averted.
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8 | | (8) The Report identified potential market-based |
9 | | solutions that will ensure that the premature closure of |
10 | | these nuclear power plants does not occur and that the |
11 | | associated dire consequences to the environment, electric |
12 | | reliability, and the regional economy are averted.
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13 | | The General Assembly further finds that the Social Cost of |
14 | | Carbon is an appropriate valuation of the environmental |
15 | | benefits provided by zero emission facilities, provided that |
16 | | the valuation is subject to a price adjustment that can reduce |
17 | | the price for zero emission credits below the Social Cost of |
18 | | Carbon. This will ensure that the procurement of zero emission |
19 | | credits remains affordable for retail customers even if energy |
20 | | and capacity prices are projected to rise above 2016 levels |
21 | | reflected in the baseline market price index. |
22 | | The General Assembly therefore finds that it is necessary |
23 | | to establish and implement a zero emission standard, which will |
24 | | increase the State's reliance on zero emission energy through |
25 | | the procurement of zero emission credits from zero emission |
26 | | facilities, in order to achieve the State's environmental |
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1 | | objectives and reduce the adverse impact of emitted air |
2 | | pollutants on the health and welfare of the State's citizens.
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3 | | Section 3. The Illinois Administrative Procedure Act is |
4 | | amended by changing Section 5-45 as follows: |
5 | | (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45) |
6 | | Sec. 5-45. Emergency rulemaking. |
7 | | (a) "Emergency" means the existence of any situation that |
8 | | any agency
finds reasonably constitutes a threat to the public |
9 | | interest, safety, or
welfare. |
10 | | (b) If any agency finds that an
emergency exists that |
11 | | requires adoption of a rule upon fewer days than
is required by |
12 | | Section 5-40 and states in writing its reasons for that
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13 | | finding, the agency may adopt an emergency rule without prior |
14 | | notice or
hearing upon filing a notice of emergency rulemaking |
15 | | with the Secretary of
State under Section 5-70. The notice |
16 | | shall include the text of the
emergency rule and shall be |
17 | | published in the Illinois Register. Consent
orders or other |
18 | | court orders adopting settlements negotiated by an agency
may |
19 | | be adopted under this Section. Subject to applicable |
20 | | constitutional or
statutory provisions, an emergency rule |
21 | | becomes effective immediately upon
filing under Section 5-65 or |
22 | | at a stated date less than 10 days
thereafter. The agency's |
23 | | finding and a statement of the specific reasons
for the finding |
24 | | shall be filed with the rule. The agency shall take
reasonable |
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1 | | and appropriate measures to make emergency rules known to the
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2 | | persons who may be affected by them. |
3 | | (c) An emergency rule may be effective for a period of not |
4 | | longer than
150 days, but the agency's authority to adopt an |
5 | | identical rule under Section
5-40 is not precluded. No |
6 | | emergency rule may be adopted more
than once in any 24-month 24 |
7 | | month period, except that this limitation on the number
of |
8 | | emergency rules that may be adopted in a 24-month 24 month |
9 | | period does not apply
to (i) emergency rules that make |
10 | | additions to and deletions from the Drug
Manual under Section |
11 | | 5-5.16 of the Illinois Public Aid Code or the
generic drug |
12 | | formulary under Section 3.14 of the Illinois Food, Drug
and |
13 | | Cosmetic Act, (ii) emergency rules adopted by the Pollution |
14 | | Control
Board before July 1, 1997 to implement portions of the |
15 | | Livestock Management
Facilities Act, (iii) emergency rules |
16 | | adopted by the Illinois Department of Public Health under |
17 | | subsections (a) through (i) of Section 2 of the Department of |
18 | | Public Health Act when necessary to protect the public's |
19 | | health, (iv) emergency rules adopted pursuant to subsection (n) |
20 | | of this Section, (v) emergency rules adopted pursuant to |
21 | | subsection (o) of this Section, or (vi) emergency rules adopted |
22 | | pursuant to subsection (c-5) of this Section. Two or more |
23 | | emergency rules having substantially the same
purpose and |
24 | | effect shall be deemed to be a single rule for purposes of this
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25 | | Section. |
26 | | (c-5) To facilitate the maintenance of the program of group |
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1 | | health benefits provided to annuitants, survivors, and retired |
2 | | employees under the State Employees Group Insurance Act of |
3 | | 1971, rules to alter the contributions to be paid by the State, |
4 | | annuitants, survivors, retired employees, or any combination |
5 | | of those entities, for that program of group health benefits, |
6 | | shall be adopted as emergency rules. The adoption of those |
7 | | rules shall be considered an emergency and necessary for the |
8 | | public interest, safety, and welfare. |
9 | | (d) In order to provide for the expeditious and timely |
10 | | implementation
of the State's fiscal year 1999 budget, |
11 | | emergency rules to implement any
provision of Public Act 90-587 |
12 | | or 90-588
or any other budget initiative for fiscal year 1999 |
13 | | may be adopted in
accordance with this Section by the agency |
14 | | charged with administering that
provision or initiative, |
15 | | except that the 24-month limitation on the adoption
of |
16 | | emergency rules and the provisions of Sections 5-115 and 5-125 |
17 | | do not apply
to rules adopted under this subsection (d). The |
18 | | adoption of emergency rules
authorized by this subsection (d) |
19 | | shall be deemed to be necessary for the
public interest, |
20 | | safety, and welfare. |
21 | | (e) In order to provide for the expeditious and timely |
22 | | implementation
of the State's fiscal year 2000 budget, |
23 | | emergency rules to implement any
provision of Public Act 91-24
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24 | | or any other budget initiative for fiscal year 2000 may be |
25 | | adopted in
accordance with this Section by the agency charged |
26 | | with administering that
provision or initiative, except that |
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1 | | the 24-month limitation on the adoption
of emergency rules and |
2 | | the provisions of Sections 5-115 and 5-125 do not apply
to |
3 | | rules adopted under this subsection (e). The adoption of |
4 | | emergency rules
authorized by this subsection (e) shall be |
5 | | deemed to be necessary for the
public interest, safety, and |
6 | | welfare. |
7 | | (f) In order to provide for the expeditious and timely |
8 | | implementation
of the State's fiscal year 2001 budget, |
9 | | emergency rules to implement any
provision of Public Act 91-712
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10 | | or any other budget initiative for fiscal year 2001 may be |
11 | | adopted in
accordance with this Section by the agency charged |
12 | | with administering that
provision or initiative, except that |
13 | | the 24-month limitation on the adoption
of emergency rules and |
14 | | the provisions of Sections 5-115 and 5-125 do not apply
to |
15 | | rules adopted under this subsection (f). The adoption of |
16 | | emergency rules
authorized by this subsection (f) shall be |
17 | | deemed to be necessary for the
public interest, safety, and |
18 | | welfare. |
19 | | (g) In order to provide for the expeditious and timely |
20 | | implementation
of the State's fiscal year 2002 budget, |
21 | | emergency rules to implement any
provision of Public Act 92-10
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22 | | or any other budget initiative for fiscal year 2002 may be |
23 | | adopted in
accordance with this Section by the agency charged |
24 | | with administering that
provision or initiative, except that |
25 | | the 24-month limitation on the adoption
of emergency rules and |
26 | | the provisions of Sections 5-115 and 5-125 do not apply
to |
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1 | | rules adopted under this subsection (g). The adoption of |
2 | | emergency rules
authorized by this subsection (g) shall be |
3 | | deemed to be necessary for the
public interest, safety, and |
4 | | welfare. |
5 | | (h) In order to provide for the expeditious and timely |
6 | | implementation
of the State's fiscal year 2003 budget, |
7 | | emergency rules to implement any
provision of Public Act 92-597
|
8 | | or any other budget initiative for fiscal year 2003 may be |
9 | | adopted in
accordance with this Section by the agency charged |
10 | | with administering that
provision or initiative, except that |
11 | | the 24-month limitation on the adoption
of emergency rules and |
12 | | the provisions of Sections 5-115 and 5-125 do not apply
to |
13 | | rules adopted under this subsection (h). The adoption of |
14 | | emergency rules
authorized by this subsection (h) shall be |
15 | | deemed to be necessary for the
public interest, safety, and |
16 | | welfare. |
17 | | (i) In order to provide for the expeditious and timely |
18 | | implementation
of the State's fiscal year 2004 budget, |
19 | | emergency rules to implement any
provision of Public Act 93-20
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20 | | or any other budget initiative for fiscal year 2004 may be |
21 | | adopted in
accordance with this Section by the agency charged |
22 | | with administering that
provision or initiative, except that |
23 | | the 24-month limitation on the adoption
of emergency rules and |
24 | | the provisions of Sections 5-115 and 5-125 do not apply
to |
25 | | rules adopted under this subsection (i). The adoption of |
26 | | emergency rules
authorized by this subsection (i) shall be |
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1 | | deemed to be necessary for the
public interest, safety, and |
2 | | welfare. |
3 | | (j) In order to provide for the expeditious and timely |
4 | | implementation of the provisions of the State's fiscal year |
5 | | 2005 budget as provided under the Fiscal Year 2005 Budget |
6 | | Implementation (Human Services) Act, emergency rules to |
7 | | implement any provision of the Fiscal Year 2005 Budget |
8 | | Implementation (Human Services) Act may be adopted in |
9 | | accordance with this Section by the agency charged with |
10 | | administering that provision, except that the 24-month |
11 | | limitation on the adoption of emergency rules and the |
12 | | provisions of Sections 5-115 and 5-125 do not apply to rules |
13 | | adopted under this subsection (j). The Department of Public Aid |
14 | | may also adopt rules under this subsection (j) necessary to |
15 | | administer the Illinois Public Aid Code and the Children's |
16 | | Health Insurance Program Act. The adoption of emergency rules |
17 | | authorized by this subsection (j) shall be deemed to be |
18 | | necessary for the public interest, safety, and welfare.
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19 | | (k) In order to provide for the expeditious and timely |
20 | | implementation of the provisions of the State's fiscal year |
21 | | 2006 budget, emergency rules to implement any provision of |
22 | | Public Act 94-48 or any other budget initiative for fiscal year |
23 | | 2006 may be adopted in accordance with this Section by the |
24 | | agency charged with administering that provision or |
25 | | initiative, except that the 24-month limitation on the adoption |
26 | | of emergency rules and the provisions of Sections 5-115 and |
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1 | | 5-125 do not apply to rules adopted under this subsection (k). |
2 | | The Department of Healthcare and Family Services may also adopt |
3 | | rules under this subsection (k) necessary to administer the |
4 | | Illinois Public Aid Code, the Senior Citizens and Persons with |
5 | | Disabilities Property Tax Relief Act, the Senior Citizens and |
6 | | Disabled Persons Prescription Drug Discount Program Act (now |
7 | | the Illinois Prescription Drug Discount Program Act), and the |
8 | | Children's Health Insurance Program Act. The adoption of |
9 | | emergency rules authorized by this subsection (k) shall be |
10 | | deemed to be necessary for the public interest, safety, and |
11 | | welfare.
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12 | | (l) In order to provide for the expeditious and timely |
13 | | implementation of the provisions of the
State's fiscal year |
14 | | 2007 budget, the Department of Healthcare and Family Services |
15 | | may adopt emergency rules during fiscal year 2007, including |
16 | | rules effective July 1, 2007, in
accordance with this |
17 | | subsection to the extent necessary to administer the |
18 | | Department's responsibilities with respect to amendments to |
19 | | the State plans and Illinois waivers approved by the federal |
20 | | Centers for Medicare and Medicaid Services necessitated by the |
21 | | requirements of Title XIX and Title XXI of the federal Social |
22 | | Security Act. The adoption of emergency rules
authorized by |
23 | | this subsection (l) shall be deemed to be necessary for the |
24 | | public interest,
safety, and welfare.
|
25 | | (m) In order to provide for the expeditious and timely |
26 | | implementation of the provisions of the
State's fiscal year |
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1 | | 2008 budget, the Department of Healthcare and Family Services |
2 | | may adopt emergency rules during fiscal year 2008, including |
3 | | rules effective July 1, 2008, in
accordance with this |
4 | | subsection to the extent necessary to administer the |
5 | | Department's responsibilities with respect to amendments to |
6 | | the State plans and Illinois waivers approved by the federal |
7 | | Centers for Medicare and Medicaid Services necessitated by the |
8 | | requirements of Title XIX and Title XXI of the federal Social |
9 | | Security Act. The adoption of emergency rules
authorized by |
10 | | this subsection (m) shall be deemed to be necessary for the |
11 | | public interest,
safety, and welfare.
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12 | | (n) In order to provide for the expeditious and timely |
13 | | implementation of the provisions of the State's fiscal year |
14 | | 2010 budget, emergency rules to implement any provision of |
15 | | Public Act 96-45 or any other budget initiative authorized by |
16 | | the 96th General Assembly for fiscal year 2010 may be adopted |
17 | | in accordance with this Section by the agency charged with |
18 | | administering that provision or initiative. The adoption of |
19 | | emergency rules authorized by this subsection (n) shall be |
20 | | deemed to be necessary for the public interest, safety, and |
21 | | welfare. The rulemaking authority granted in this subsection |
22 | | (n) shall apply only to rules promulgated during Fiscal Year |
23 | | 2010. |
24 | | (o) In order to provide for the expeditious and timely |
25 | | implementation of the provisions of the State's fiscal year |
26 | | 2011 budget, emergency rules to implement any provision of |
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1 | | Public Act 96-958 or any other budget initiative authorized by |
2 | | the 96th General Assembly for fiscal year 2011 may be adopted |
3 | | in accordance with this Section by the agency charged with |
4 | | administering that provision or initiative. The adoption of |
5 | | emergency rules authorized by this subsection (o) is deemed to |
6 | | be necessary for the public interest, safety, and welfare. The |
7 | | rulemaking authority granted in this subsection (o) applies |
8 | | only to rules promulgated on or after July 1, 2010 ( the |
9 | | effective date of Public Act 96-958 ) through June 30, 2011. |
10 | | (p) In order to provide for the expeditious and timely |
11 | | implementation of the provisions of Public Act 97-689, |
12 | | emergency rules to implement any provision of Public Act 97-689 |
13 | | may be adopted in accordance with this subsection (p) by the |
14 | | agency charged with administering that provision or |
15 | | initiative. The 150-day limitation of the effective period of |
16 | | emergency rules does not apply to rules adopted under this |
17 | | subsection (p), and the effective period may continue through |
18 | | June 30, 2013. The 24-month limitation on the adoption of |
19 | | emergency rules does not apply to rules adopted under this |
20 | | subsection (p). The adoption of emergency rules authorized by |
21 | | this subsection (p) is deemed to be necessary for the public |
22 | | interest, safety, and welfare. |
23 | | (q) In order to provide for the expeditious and timely |
24 | | implementation of the provisions of Articles 7, 8, 9, 11, and |
25 | | 12 of Public Act 98-104, emergency rules to implement any |
26 | | provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 |
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1 | | may be adopted in accordance with this subsection (q) by the |
2 | | agency charged with administering that provision or |
3 | | initiative. The 24-month limitation on the adoption of |
4 | | emergency rules does not apply to rules adopted under this |
5 | | subsection (q). The adoption of emergency rules authorized by |
6 | | this subsection (q) is deemed to be necessary for the public |
7 | | interest, safety, and welfare. |
8 | | (r) In order to provide for the expeditious and timely |
9 | | implementation of the provisions of Public Act 98-651, |
10 | | emergency rules to implement Public Act 98-651 may be adopted |
11 | | in accordance with this subsection (r) by the Department of |
12 | | Healthcare and Family Services. The 24-month limitation on the |
13 | | adoption of emergency rules does not apply to rules adopted |
14 | | under this subsection (r). The adoption of emergency rules |
15 | | authorized by this subsection (r) is deemed to be necessary for |
16 | | the public interest, safety, and welfare. |
17 | | (s) In order to provide for the expeditious and timely |
18 | | implementation of the provisions of Sections 5-5b.1 and 5A-2 of |
19 | | the Illinois Public Aid Code, emergency rules to implement any |
20 | | provision of Section 5-5b.1 or Section 5A-2 of the Illinois |
21 | | Public Aid Code may be adopted in accordance with this |
22 | | subsection (s) by the Department of Healthcare and Family |
23 | | Services. The rulemaking authority granted in this subsection |
24 | | (s) shall apply only to those rules adopted prior to July 1, |
25 | | 2015. Notwithstanding any other provision of this Section, any |
26 | | emergency rule adopted under this subsection (s) shall only |
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1 | | apply to payments made for State fiscal year 2015. The adoption |
2 | | of emergency rules authorized by this subsection (s) is deemed |
3 | | to be necessary for the public interest, safety, and welfare. |
4 | | (t) In order to provide for the expeditious and timely |
5 | | implementation of the provisions of Article II of Public Act |
6 | | 99-6, emergency rules to implement the changes made by Article |
7 | | II of Public Act 99-6 to the Emergency Telephone System Act may |
8 | | be adopted in accordance with this subsection (t) by the |
9 | | Department of State Police. The rulemaking authority granted in |
10 | | this subsection (t) shall apply only to those rules adopted |
11 | | prior to July 1, 2016. The 24-month limitation on the adoption |
12 | | of emergency rules does not apply to rules adopted under this |
13 | | subsection (t). The adoption of emergency rules authorized by |
14 | | this subsection (t) is deemed to be necessary for the public |
15 | | interest, safety, and welfare. |
16 | | (u) In order to provide for the expeditious and timely |
17 | | implementation of the provisions of the Burn Victims Relief |
18 | | Act, emergency rules to implement any provision of the Act may |
19 | | be adopted in accordance with this subsection (u) by the |
20 | | Department of Insurance. The rulemaking authority granted in |
21 | | this subsection (u) shall apply only to those rules adopted |
22 | | prior to December 31, 2015. The adoption of emergency rules |
23 | | authorized by this subsection (u) is deemed to be necessary for |
24 | | the public interest, safety, and welfare. |
25 | | (v) In order to provide for the expeditious and timely |
26 | | implementation of the provisions of Public Act 99-516 this |
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1 | | amendatory Act of the 99th General Assembly , emergency rules to |
2 | | implement Public Act 99-516 this amendatory Act of the 99th |
3 | | General Assembly may be adopted in accordance with this |
4 | | subsection (v) by the Department of Healthcare and Family |
5 | | Services. The 24-month limitation on the adoption of emergency |
6 | | rules does not apply to rules adopted under this subsection |
7 | | (v). The adoption of emergency rules authorized by this |
8 | | subsection (v) is deemed to be necessary for the public |
9 | | interest, safety, and welfare. |
10 | | (w) (v) In order to provide for the expeditious and timely |
11 | | implementation of the provisions of Public Act 99-796 this |
12 | | amendatory Act of the 99th General Assembly , emergency rules to |
13 | | implement the changes made by Public Act 99-796 this amendatory |
14 | | Act of the 99th General Assembly may be adopted in accordance |
15 | | with this subsection (w) (v) by the Adjutant General. The |
16 | | adoption of emergency rules authorized by this subsection (w) |
17 | | (v) is deemed to be necessary for the public interest, safety, |
18 | | and welfare. |
19 | | (x) In order to provide for the expeditious and timely |
20 | | implementation of the provisions of this amendatory Act of the |
21 | | 99th General Assembly, emergency rules to implement subsection |
22 | | (i) of Section 16-115D of the Public Utilities Act may be |
23 | | adopted in accordance with this subsection (x) by the Illinois |
24 | | Commerce Commission. The rulemaking authority granted in this |
25 | | subsection (x) shall apply only to those rules adopted within |
26 | | 30 days after the effective date of this amendatory Act of the |
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1 | | 99th General Assembly. The adoption of emergency rules |
2 | | authorized by this subsection (x) is deemed to be necessary for |
3 | | the public interest, safety, and welfare. |
4 | | (Source: P.A. 98-104, eff. 7-22-13; 98-463, eff. 8-16-13; |
5 | | 98-651, eff. 6-16-14; 99-2, eff. 3-26-15; 99-6, eff. 1-1-16; |
6 | | 99-143, eff. 7-27-15; 99-455, eff. 1-1-16; 99-516, eff. |
7 | | 6-30-16; 99-642, eff. 7-28-16; 99-796, eff. 1-1-17; revised |
8 | | 9-21-16.) |
9 | | Section 5. The Illinois Power Agency Act is amended by |
10 | | changing Sections 1-5, 1-10, 1-20, 1-25, 1-56, and 1-75 as |
11 | | follows: |
12 | | (20 ILCS 3855/1-5) |
13 | | Sec. 1-5. Legislative declarations and findings. The |
14 | | General Assembly finds and declares: |
15 | | (1) The health, welfare, and prosperity of all Illinois |
16 | | citizens require the provision of adequate, reliable, |
17 | | affordable, efficient, and environmentally sustainable |
18 | | electric service at the lowest total cost over time, taking |
19 | | into account any benefits of price stability. |
20 | | (2) (Blank). The transition to retail competition is |
21 | | not complete. Some customers, especially residential and |
22 | | small commercial customers, have failed to benefit from |
23 | | lower electricity costs from retail and wholesale |
24 | | competition. |
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1 | | (3) (Blank). Escalating prices for electricity in |
2 | | Illinois pose a serious threat to the economic well-being, |
3 | | health, and safety of the residents of and the commerce and |
4 | | industry of the State. |
5 | | (4) It To protect against this threat to economic |
6 | | well-being, health, and safety it is necessary to improve |
7 | | the process of procuring electricity to serve Illinois |
8 | | residents, to promote investment in energy efficiency and |
9 | | demand-response measures, and to maintain and support |
10 | | development of clean coal technologies , generation |
11 | | resources that operate at all hours of the day and under |
12 | | all weather conditions, zero emission facilities, and |
13 | | renewable resources. |
14 | | (5) Procuring a diverse electricity supply portfolio |
15 | | will ensure the lowest total cost over time for adequate, |
16 | | reliable, efficient, and environmentally sustainable |
17 | | electric service. |
18 | | (6) Including cost-effective renewable resources and |
19 | | zero emission credits from zero emission facilities in that |
20 | | portfolio will reduce long-term direct and indirect costs |
21 | | to consumers by decreasing environmental impacts and by |
22 | | avoiding or delaying the need for new generation, |
23 | | transmission, and distribution infrastructure. Developing |
24 | | new renewable energy resources in Illinois, including |
25 | | brownfield solar projects and community solar projects, |
26 | | will help to diversify Illinois electricity supply, avoid |
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1 | | and reduce pollution, reduce peak demand, and enhance |
2 | | public health and well-being of Illinois residents. |
3 | | (7) Developing community solar projects in Illinois |
4 | | will help to expand access to renewable energy resources to |
5 | | more Illinois residents. |
6 | | (8) Developing brownfield solar projects in Illinois |
7 | | will help return blighted or contaminated land to |
8 | | productive use while enhancing public health and the |
9 | | well-being of Illinois residents. |
10 | | (9) (7) Energy efficiency, demand-response measures, |
11 | | zero emission energy, and renewable energy are resources |
12 | | currently underused in Illinois. These resources should be |
13 | | used, when cost effective, to reduce costs to consumers, |
14 | | improve reliability, and improve environmental quality and |
15 | | public health. |
16 | | (10) (8) The State should encourage the use of advanced |
17 | | clean coal technologies that capture and sequester carbon |
18 | | dioxide emissions to advance environmental protection |
19 | | goals and to demonstrate the viability of coal and |
20 | | coal-derived fuels in a carbon-constrained economy. |
21 | | (11) (9) The General Assembly enacted Public Act |
22 | | 96-0795 to reform the State's purchasing processes, |
23 | | recognizing that government procurement is susceptible to |
24 | | abuse if structural and procedural safeguards are not in |
25 | | place to ensure independence, insulation, oversight, and |
26 | | transparency. |
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1 | | (12) (10) The principles that underlie the procurement |
2 | | reform legislation apply also in the context of power |
3 | | purchasing. |
4 | | The General Assembly therefore finds that it is necessary |
5 | | to create the Illinois Power Agency and that the goals and |
6 | | objectives of that Agency are to accomplish each of the |
7 | | following: |
8 | | (A) Develop electricity procurement plans to ensure |
9 | | adequate, reliable, affordable, efficient, and |
10 | | environmentally sustainable electric service at the lowest |
11 | | total cost over time, taking into account any benefits of |
12 | | price stability, for electric utilities that on December |
13 | | 31, 2005 provided electric service to at least 100,000 |
14 | | customers in Illinois and for small multi-jurisdictional |
15 | | electric utilities that (i) on December 31, 2005 served |
16 | | less than 100,000 customers in Illinois and (ii) request a |
17 | | procurement plan for their Illinois jurisdictional load. |
18 | | The procurement plan shall be updated on an annual basis |
19 | | and shall include renewable energy resources and, |
20 | | beginning with the delivery year commencing June 1, 2017, |
21 | | zero emission credits from zero emission facilities |
22 | | sufficient to achieve the standards specified in this Act. |
23 | | (B) Conduct competitive procurement processes to |
24 | | procure the supply resources identified in the procurement |
25 | | plan. |
26 | | (C) Develop electric generation and co-generation |
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1 | | facilities that use indigenous coal or renewable |
2 | | resources, or both, financed with bonds issued by the |
3 | | Illinois Finance Authority. |
4 | | (D) Supply electricity from the Agency's facilities at |
5 | | cost to one or more of the following: municipal electric |
6 | | systems, governmental aggregators, or rural electric |
7 | | cooperatives in Illinois.
|
8 | | (E) Ensure that the process of power procurement is |
9 | | conducted in an ethical and transparent fashion, immune |
10 | | from improper influence. |
11 | | (F) Continue to review its policies and practices to |
12 | | determine how best to meet its mission of providing the |
13 | | lowest cost power to the greatest number of people, at any |
14 | | given point in time, in accordance with applicable law. |
15 | | (G) Operate in a structurally insulated, independent, |
16 | | and transparent fashion so that nothing impedes the |
17 | | Agency's mission to secure power at the best prices the |
18 | | market will bear, provided that the Agency meets all |
19 | | applicable legal requirements. |
20 | | (H) Implement renewable energy procurement and |
21 | | training programs throughout the State to diversify |
22 | | Illinois electricity supply, improve reliability, avoid |
23 | | and reduce pollution, reduce peak demand, and enhance |
24 | | public health and well-being of Illinois residents, |
25 | | including low-income residents. |
26 | | (Source: P.A. 97-325, eff. 8-12-11; 97-618, eff. 10-26-11; |
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1 | | 97-813, eff. 7-13-12.)
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2 | | (20 ILCS 3855/1-10)
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3 | | Sec. 1-10. Definitions. |
4 | | "Agency" means the Illinois Power Agency. |
5 | | "Agency loan agreement" means any agreement pursuant to |
6 | | which the Illinois Finance Authority agrees to loan the |
7 | | proceeds of revenue bonds issued with respect to a project to |
8 | | the Agency upon terms providing for loan repayment installments |
9 | | at least sufficient to pay when due all principal of, interest |
10 | | and premium, if any, on those revenue bonds, and providing for |
11 | | maintenance, insurance, and other matters in respect of the |
12 | | project. |
13 | | "Authority" means the Illinois Finance Authority. |
14 | | "Brownfield site photovoltaic project" means photovoltaics |
15 | | that are: |
16 | | (1) interconnected to an electric utility as defined in |
17 | | this Section, a municipal utility as defined in this |
18 | | Section, a public utility as defined in Section 3-105 of |
19 | | the Public Utilities Act, or an electric cooperative, as |
20 | | defined in Section 3-119 of the Public Utilities Act; and |
21 | | (2) located at a site that is regulated by any of the |
22 | | following entities under the following programs: |
23 | | (A) the United States Environmental Protection |
24 | | Agency under the federal Comprehensive Environmental |
25 | | Response, Compensation, and Liability Act of 1980, as |
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1 | | amended; |
2 | | (B) the United States Environmental Protection |
3 | | Agency under the Corrective Action Program of the |
4 | | federal Resource Conservation and Recovery Act, as |
5 | | amended; |
6 | | (C) the Illinois Environmental Protection Agency |
7 | | under the Illinois Site Remediation Program; or |
8 | | (D) the Illinois Environmental Protection Agency |
9 | | under the Illinois Solid Waste Program. |
10 | | "Clean coal facility" means an electric generating |
11 | | facility that uses primarily coal as a feedstock and that |
12 | | captures and sequesters carbon dioxide emissions at the |
13 | | following levels: at least 50% of the total carbon dioxide |
14 | | emissions that the facility would otherwise emit if, at the |
15 | | time construction commences, the facility is scheduled to |
16 | | commence operation before 2016, at least 70% of the total |
17 | | carbon dioxide emissions that the facility would otherwise emit |
18 | | if, at the time construction commences, the facility is |
19 | | scheduled to commence operation during 2016 or 2017, and at |
20 | | least 90% of the total carbon dioxide emissions that the |
21 | | facility would otherwise emit if, at the time construction |
22 | | commences, the facility is scheduled to commence operation |
23 | | after 2017. The power block of the clean coal facility shall |
24 | | not exceed allowable emission rates for sulfur dioxide, |
25 | | nitrogen oxides, carbon monoxide, particulates and mercury for |
26 | | a natural gas-fired combined-cycle facility the same size as |
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1 | | and in the same location as the clean coal facility at the time |
2 | | the clean coal facility obtains an approved air permit. All |
3 | | coal used by a clean coal facility shall have high volatile |
4 | | bituminous rank and greater than 1.7 pounds of sulfur per |
5 | | million btu content, unless the clean coal facility does not |
6 | | use gasification technology and was operating as a conventional |
7 | | coal-fired electric generating facility on June 1, 2009 (the |
8 | | effective date of Public Act 95-1027). |
9 | | "Clean coal SNG brownfield facility" means a facility that |
10 | | (1) has commenced construction by July 1, 2015 on an urban |
11 | | brownfield site in a municipality with at least 1,000,000 |
12 | | residents; (2) uses a gasification process to produce |
13 | | substitute natural gas; (3) uses coal as at least 50% of the |
14 | | total feedstock over the term of any sourcing agreement with a |
15 | | utility and the remainder of the feedstock may be either |
16 | | petroleum coke or coal, with all such coal having a high |
17 | | bituminous rank and greater than 1.7 pounds of sulfur per |
18 | | million Btu content unless the facility reasonably determines
|
19 | | that it is necessary to use additional petroleum coke to
|
20 | | deliver additional consumer savings, in which case the
facility |
21 | | shall use coal for at least 35% of the total
feedstock over the |
22 | | term of any sourcing agreement; and (4) captures and sequesters |
23 | | at least 85% of the total carbon dioxide emissions that the |
24 | | facility would otherwise emit. |
25 | | "Clean coal SNG facility" means a facility that uses a |
26 | | gasification process to produce substitute natural gas, that |
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1 | | sequesters at least 90% of the total carbon dioxide emissions |
2 | | that the facility would otherwise emit, that uses at least 90% |
3 | | coal as a feedstock, with all such coal having a high |
4 | | bituminous rank and greater than 1.7 pounds of sulfur per |
5 | | million btu content, and that has a valid and effective permit |
6 | | to construct emission sources and air pollution control |
7 | | equipment and approval with respect to the federal regulations |
8 | | for Prevention of Significant Deterioration of Air Quality |
9 | | (PSD) for the plant pursuant to the federal Clean Air Act; |
10 | | provided, however, a clean coal SNG brownfield facility shall |
11 | | not be a clean coal SNG facility. |
12 | | "Commission" means the Illinois Commerce Commission. |
13 | | "Community renewable generation project" means an electric |
14 | | generating facility that: |
15 | | (1) is powered by wind, solar thermal energy, |
16 | | photovoltaic cells or panels, biodiesel, crops and |
17 | | untreated and unadulterated organic waste biomass, tree |
18 | | waste, and hydropower that does not involve new |
19 | | construction or significant expansion of hydropower 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, a public |
23 | | utility as defined in Section 3-105 of the Public Utilities |
24 | | Act, or an electric cooperative, as defined in Section |
25 | | 3-119 of the Public Utilities Act; |
26 | | (3) credits the value of electricity generated by the |
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1 | | facility to the subscribers of the facility; and |
2 | | (4) is limited in nameplate capacity to less than or |
3 | | equal to 2,000 kilowatts. |
4 | | "Costs incurred in connection with the development and |
5 | | construction of a facility" means: |
6 | | (1) the cost of acquisition of all real property, |
7 | | fixtures, and improvements in connection therewith and |
8 | | equipment, personal property, and other property, rights, |
9 | | and easements acquired that are deemed necessary for the |
10 | | operation and maintenance of the facility; |
11 | | (2) financing costs with respect to bonds, notes, and |
12 | | other evidences of indebtedness of the Agency; |
13 | | (3) all origination, commitment, utilization, |
14 | | facility, placement, underwriting, syndication, credit |
15 | | enhancement, and rating agency fees; |
16 | | (4) engineering, design, procurement, consulting, |
17 | | legal, accounting, title insurance, survey, appraisal, |
18 | | escrow, trustee, collateral agency, interest rate hedging, |
19 | | interest rate swap, capitalized interest, contingency, as |
20 | | required by lenders, and other financing costs, and other |
21 | | expenses for professional services; and |
22 | | (5) the costs of plans, specifications, site study and |
23 | | investigation, installation, surveys, other Agency costs |
24 | | and estimates of costs, and other expenses necessary or |
25 | | incidental to determining the feasibility of any project, |
26 | | together with such other expenses as may be necessary or |
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1 | | incidental to the financing, insuring, acquisition, and |
2 | | construction of a specific project and starting up, |
3 | | commissioning, and placing that project in operation. |
4 | | "Delivery services" has the same definition as found in |
5 | | Section 16-102 of the Public Utilities Act. |
6 | | "Delivery year" means the consecutive 12-month period |
7 | | beginning June 1 of a given year and ending May 31 of the |
8 | | following year. |
9 | | "Department" means the Department of Commerce and Economic |
10 | | Opportunity. |
11 | | "Director" means the Director of the Illinois Power Agency. |
12 | | "Demand-response" means measures that decrease peak |
13 | | electricity demand or shift demand from peak to off-peak |
14 | | periods. |
15 | | "Distributed renewable energy generation device" means a |
16 | | device that is: |
17 | | (1) powered by wind, solar thermal energy, |
18 | | photovoltaic cells or and panels, biodiesel, crops and |
19 | | untreated and unadulterated organic waste biomass, tree |
20 | | waste, and hydropower that does not involve new |
21 | | construction or significant expansion of hydropower dams; |
22 | | (2) interconnected at the distribution system level of |
23 | | either an electric utility as defined in this Section, an |
24 | | alternative retail electric supplier as defined in Section |
25 | | 16-102 of the Public Utilities Act, a municipal utility as |
26 | | defined in this Section 3-105 of the Public Utilities Act , |
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1 | | or a rural electric cooperative as defined in Section 3-119 |
2 | | of the Public Utilities Act; |
3 | | (3) located on the customer side of the customer's |
4 | | electric meter and is primarily used to offset that |
5 | | customer's electricity load; and |
6 | | (4) limited in nameplate capacity to less than or equal |
7 | | to no more than 2,000 kilowatts. |
8 | | "Energy efficiency" means measures that reduce the amount |
9 | | of electricity or natural gas consumed in order required to |
10 | | achieve a given end use. "Energy efficiency" includes voltage |
11 | | optimization measures that optimize the voltage at points on |
12 | | the electric distribution voltage system and thereby reduce |
13 | | electricity consumption by electric customers' end use |
14 | | devices. "Energy efficiency" also includes measures that |
15 | | reduce the total Btus of electricity , and natural gas , and |
16 | | other fuels needed to meet the end use or uses. |
17 | | "Electric utility" has the same definition as found in |
18 | | Section 16-102 of the Public Utilities Act. |
19 | | "Facility" means an electric generating unit or a |
20 | | co-generating unit that produces electricity along with |
21 | | related equipment necessary to connect the facility to an |
22 | | electric transmission or distribution system. |
23 | | "Governmental aggregator" means one or more units of local |
24 | | government that individually or collectively procure |
25 | | electricity to serve residential retail electrical loads |
26 | | located within its or their jurisdiction. |
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1 | | "Local government" means a unit of local government as |
2 | | defined in Section 1 of Article VII of the Illinois |
3 | | Constitution. |
4 | | "Municipality" means a city, village, or incorporated |
5 | | town. |
6 | | "Municipal utility" means a public utility owned and |
7 | | operated by any subdivision or municipal corporation of this |
8 | | State. |
9 | | "Nameplate capacity" means the aggregate inverter |
10 | | nameplate capacity in kilowatts AC. |
11 | | "Person" means any natural person, firm, partnership, |
12 | | corporation, either domestic or foreign, company, association, |
13 | | limited liability company, joint stock company, or association |
14 | | and includes any trustee, receiver, assignee, or personal |
15 | | representative thereof. |
16 | | "Project" means the planning, bidding, and construction of |
17 | | a facility. |
18 | | "Public utility" has the same definition as found in |
19 | | Section 3-105 of the Public Utilities Act. |
20 | | "Real property" means any interest in land together with |
21 | | all structures, fixtures, and improvements thereon, including |
22 | | lands under water and riparian rights, any easements, |
23 | | covenants, licenses, leases, rights-of-way, uses, and other |
24 | | interests, together with any liens, judgments, mortgages, or |
25 | | other claims or security interests related to real property. |
26 | | "Renewable energy credit" means a tradable credit that |
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1 | | represents the environmental attributes of one megawatt hour a |
2 | | certain amount of energy produced from a renewable energy |
3 | | resource. |
4 | | "Renewable energy resources" includes energy and its |
5 | | associated renewable energy credit or renewable energy credits |
6 | | from wind, solar thermal energy, photovoltaic cells and panels, |
7 | | biodiesel, anaerobic digestion, crops and untreated and |
8 | | unadulterated organic waste biomass, tree waste, and |
9 | | hydropower that does not involve new construction or |
10 | | significant expansion of hydropower dams , and other |
11 | | alternative sources of environmentally preferable energy . For |
12 | | purposes of this Act, landfill gas produced in the State is |
13 | | considered a renewable energy resource. "Renewable energy |
14 | | resources" does not include the incineration or burning of |
15 | | tires, garbage, general household, institutional, and |
16 | | commercial waste, industrial lunchroom or office waste, |
17 | | landscape waste other than tree waste, railroad crossties, |
18 | | utility poles, or construction or demolition debris, other than |
19 | | untreated and unadulterated waste wood. |
20 | | "Retail customer" has the same definition as found in |
21 | | Section 16-102 of the Public Utilities Act. |
22 | | "Revenue bond" means any bond, note, or other evidence of |
23 | | indebtedness issued by the Authority, the principal and |
24 | | interest of which is payable solely from revenues or income |
25 | | derived from any project or activity of the Agency. |
26 | | "Sequester" means permanent storage of carbon dioxide by |
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1 | | injecting it into a saline aquifer, a depleted gas reservoir, |
2 | | or an oil reservoir, directly or through an enhanced oil |
3 | | recovery process that may involve intermediate storage, |
4 | | regardless of whether these activities are conducted by a clean |
5 | | coal facility, a clean coal SNG facility, a clean coal SNG |
6 | | brownfield facility, or a party with which a clean coal |
7 | | facility, clean coal SNG facility, or clean coal SNG brownfield |
8 | | facility has contracted for such purposes. |
9 | | "Service area" has the same definition as found in Section |
10 | | 16-102 of the Public Utilities Act. |
11 | | "Sourcing agreement" means (i) in the case of an electric |
12 | | utility, an agreement between the owner of a clean coal |
13 | | facility and such electric utility, which agreement shall have |
14 | | terms and conditions meeting the requirements of paragraph (3) |
15 | | of subsection (d) of Section 1-75, (ii) in the case of an |
16 | | alternative retail electric supplier, an agreement between the |
17 | | owner of a clean coal facility and such alternative retail |
18 | | electric supplier, which agreement shall have terms and |
19 | | conditions meeting the requirements of Section 16-115(d)(5) of |
20 | | the Public Utilities Act, and (iii) in case of a gas utility, |
21 | | an agreement between the owner of a clean coal SNG brownfield |
22 | | facility and the gas utility, which agreement shall have the |
23 | | terms and conditions meeting the requirements of subsection |
24 | | (h-1) of Section 9-220 of the Public Utilities Act. |
25 | | "Subscriber" means a person who (i) takes delivery service |
26 | | from an electric utility, and (ii) has a subscription of no |
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1 | | less than 200 watts to a community renewable generation project |
2 | | that is located in the electric utility's service area. No |
3 | | subscriber's subscriptions may total more than 40% of the |
4 | | nameplate capacity of an individual community renewable |
5 | | generation project. Entities that are affiliated by virtue of a |
6 | | common parent shall not represent multiple subscriptions that |
7 | | total more than 40% of the nameplate capacity of an individual |
8 | | community renewable generation project. |
9 | | "Subscription" means an interest in a community renewable |
10 | | generation project expressed in kilowatts, which is sized |
11 | | primarily to offset part or all of the subscriber's electricity |
12 | | usage. |
13 | | "Substitute natural gas" or "SNG" means a gas manufactured |
14 | | by gasification of hydrocarbon feedstock, which is |
15 | | substantially interchangeable in use and distribution with |
16 | | conventional natural gas.
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17 | | "Total resource cost test" or "TRC test" means a standard |
18 | | that is met if, for an investment in energy efficiency or |
19 | | demand-response measures, the benefit-cost ratio is greater |
20 | | than one. The benefit-cost ratio is the ratio of the net |
21 | | present value of the total benefits of the program to the net |
22 | | present value of the total costs as calculated over the |
23 | | lifetime of the measures. A total resource cost test compares |
24 | | the sum of avoided electric utility costs, representing the |
25 | | benefits that accrue to the system and the participant in the |
26 | | delivery of those efficiency measures and including avoided |
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1 | | costs associated with reduced use of natural gas or other |
2 | | fuels, avoided costs associated with reduced water |
3 | | consumption, and avoided costs associated with reduced |
4 | | operation and maintenance costs , as well as other quantifiable |
5 | | societal benefits, including avoided natural gas utility |
6 | | costs, to the sum of all incremental costs of end-use measures |
7 | | that are implemented due to the program (including both utility |
8 | | and participant contributions), plus costs to administer, |
9 | | deliver, and evaluate each demand-side program, to quantify the |
10 | | net savings obtained by substituting the demand-side program |
11 | | for supply resources. In calculating avoided costs of power and |
12 | | energy that an electric utility would otherwise have had to |
13 | | acquire, reasonable estimates shall be included of financial |
14 | | costs likely to be imposed by future regulations and |
15 | | legislation on emissions of greenhouse gases. In discounting |
16 | | future societal costs and benefits for the purpose of |
17 | | calculating net present values, a societal discount rate based |
18 | | on actual, long-term Treasury bond yields should be used. |
19 | | Notwithstanding anything to the contrary, the TRC test shall |
20 | | not include or take into account a calculation of market price |
21 | | suppression effects or demand reduction induced price effects. |
22 | | "Utility-scale solar project" means an electric generating |
23 | | facility that: |
24 | | (1) generates electricity using photovoltaic cells; |
25 | | and |
26 | | (2) has a nameplate capacity that is greater than 2,000 |
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1 | | kilowatts. |
2 | | "Utility-scale wind project" means an electric generating |
3 | | facility that: |
4 | | (1) generates electricity using wind; and |
5 | | (2) has a nameplate capacity that is greater than 2,000 |
6 | | kilowatts. |
7 | | "Zero emission credit" means a tradable credit that |
8 | | represents the environmental attributes of one megawatt hour of |
9 | | energy produced from a zero emission facility. |
10 | | "Zero emission facility" means a facility that: (1) is |
11 | | fueled by nuclear power; and (2) is interconnected with PJM |
12 | | Interconnection, LLC or the Midcontinent Independent System |
13 | | Operator, Inc., or their successors. |
14 | | (Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491, |
15 | | eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12; |
16 | | 98-90, eff. 7-15-13.)
|
17 | | (20 ILCS 3855/1-20)
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18 | | Sec. 1-20. General powers of the Agency. |
19 | | (a) The Agency is authorized to do each of the following: |
20 | | (1) Develop electricity procurement plans to ensure |
21 | | adequate, reliable, affordable, efficient, and |
22 | | environmentally sustainable electric service at the lowest |
23 | | total cost over time, taking into account any benefits of |
24 | | price stability, for electric utilities that on December |
25 | | 31, 2005 provided electric service to at least 100,000 |
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1 | | customers in Illinois and for small multi-jurisdictional |
2 | | electric utilities that (A) on December 31, 2005 served |
3 | | less than 100,000 customers in Illinois and (B) request a |
4 | | procurement plan for their Illinois jurisdictional load. |
5 | | Except as provided in paragraph (1.5) of this subsection |
6 | | (a), the electricity The procurement plans shall be updated |
7 | | on an annual basis and shall include electricity generated |
8 | | from renewable resources sufficient to achieve the |
9 | | standards specified in this Act. Beginning with the |
10 | | planning process for the delivery year commencing June 1, |
11 | | 2017, develop procurement plans to include zero emission |
12 | | credits generated from zero emission facilities sufficient |
13 | | to achieve the standards specified in this Act. |
14 | | (1.5) Develop a long-term renewable resources |
15 | | procurement plan in accordance with subsection (c) of |
16 | | Section 1-75 of this Act for renewable energy credits in |
17 | | amounts sufficient to achieve the standards specified in |
18 | | this Act for delivery years commencing June 1, 2017 and for |
19 | | the programs and renewable energy credits specified in |
20 | | Section 1-56 of this Act. Electricity procurement plans for |
21 | | delivery years commencing after May 31, 2017, shall not |
22 | | include procurement of renewable energy resources. |
23 | | (2) Conduct competitive procurement processes to |
24 | | procure the supply resources identified in the electricity |
25 | | procurement plan, pursuant to Section 16-111.5 of the |
26 | | Public Utilities Act , and, for the delivery year commencing |
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1 | | June 1, 2017, conduct procurement processes to procure zero |
2 | | emission credits from zero emission facilities, under |
3 | | subsection (d-5) of Section 1-75 of this Act . |
4 | | (2.5) Beginning with the procurement for the 2017 |
5 | | delivery year, conduct competitive procurement processes |
6 | | and implement programs to procure renewable energy credits |
7 | | identified in the long-term renewable resources |
8 | | procurement plan developed and approved under subsection |
9 | | (c) of Section 1-75 of this Act and Section 16-111.5 of the |
10 | | Public Utilities Act. |
11 | | (3) Develop electric generation and co-generation |
12 | | facilities that use indigenous coal or renewable |
13 | | resources, or both, financed with bonds issued by the |
14 | | Illinois Finance Authority. |
15 | | (4) Supply electricity from the Agency's facilities at |
16 | | cost to one or more of the following: municipal electric |
17 | | systems, governmental aggregators, or rural electric |
18 | | cooperatives in Illinois. |
19 | | (b) Except as otherwise limited by this Act, the Agency has |
20 | | all of the powers necessary or convenient to carry out the |
21 | | purposes and provisions of this Act, including without |
22 | | limitation, each of the following: |
23 | | (1) To have a corporate seal, and to alter that seal at |
24 | | pleasure, and to use it by causing it or a facsimile to be |
25 | | affixed or impressed or reproduced in any other manner. |
26 | | (2) To use the services of the Illinois Finance |
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1 | | Authority necessary to carry out the Agency's purposes. |
2 | | (3) To negotiate and enter into loan agreements and |
3 | | other agreements with the Illinois Finance Authority. |
4 | | (4) To obtain and employ personnel and hire consultants |
5 | | that are necessary to fulfill the Agency's purposes, and to |
6 | | make expenditures for that purpose within the |
7 | | appropriations for that purpose. |
8 | | (5) To purchase, receive, take by grant, gift, devise, |
9 | | bequest, or otherwise, lease, or otherwise acquire, own, |
10 | | hold, improve, employ, use, and otherwise deal in and with, |
11 | | real or personal property whether tangible or intangible, |
12 | | or any interest therein, within the State. |
13 | | (6) To acquire real or personal property, whether |
14 | | tangible or intangible, including without limitation |
15 | | property rights, interests in property, franchises, |
16 | | obligations, contracts, and debt and equity securities, |
17 | | and to do so by the exercise of the power of eminent domain |
18 | | in accordance with Section 1-21; except that any real |
19 | | property acquired by the exercise of the power of eminent |
20 | | domain must be located within the State. |
21 | | (7) To sell, convey, lease, exchange, transfer, |
22 | | abandon, or otherwise dispose of, or mortgage, pledge, or |
23 | | create a security interest in, any of its assets, |
24 | | properties, or any interest therein, wherever situated. |
25 | | (8) To purchase, take, receive, subscribe for, or |
26 | | otherwise acquire, hold, make a tender offer for, vote, |
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1 | | employ, sell, lend, lease, exchange, transfer, or |
2 | | otherwise dispose of, mortgage, pledge, or grant a security |
3 | | interest in, use, and otherwise deal in and with, bonds and |
4 | | other obligations, shares, or other securities (or |
5 | | interests therein) issued by others, whether engaged in a |
6 | | similar or different business or activity. |
7 | | (9) To make and execute agreements, contracts, and |
8 | | other instruments necessary or convenient in the exercise |
9 | | of the powers and functions of the Agency under this Act, |
10 | | including contracts with any person, including personal |
11 | | service contracts, or with any local government, State |
12 | | agency, or other entity; and all State agencies and all |
13 | | local governments are authorized to enter into and do all |
14 | | things necessary to perform any such agreement, contract, |
15 | | or other instrument with the Agency. No such agreement, |
16 | | contract, or other instrument shall exceed 40 years. |
17 | | (10) To lend money, invest and reinvest its funds in |
18 | | accordance with the Public Funds Investment Act, and take |
19 | | and hold real and personal property as security for the |
20 | | payment of funds loaned or invested. |
21 | | (11) To borrow money at such rate or rates of interest |
22 | | as the Agency may determine, issue its notes, bonds, or |
23 | | other obligations to evidence that indebtedness, and |
24 | | secure any of its obligations by mortgage or pledge of its |
25 | | real or personal property, machinery, equipment, |
26 | | structures, fixtures, inventories, revenues, grants, and |
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1 | | other funds as provided or any interest therein, wherever |
2 | | situated. |
3 | | (12) To enter into agreements with the Illinois Finance |
4 | | Authority to issue bonds whether or not the income |
5 | | therefrom is exempt from federal taxation. |
6 | | (13) To procure insurance against any loss in |
7 | | connection with its properties or operations in such amount |
8 | | or amounts and from such insurers, including the federal |
9 | | government, as it may deem necessary or desirable, and to |
10 | | pay any premiums therefor. |
11 | | (14) To negotiate and enter into agreements with |
12 | | trustees or receivers appointed by United States |
13 | | bankruptcy courts or federal district courts or in other |
14 | | proceedings involving adjustment of debts and authorize |
15 | | proceedings involving adjustment of debts and authorize |
16 | | legal counsel for the Agency to appear in any such |
17 | | proceedings. |
18 | | (15) To file a petition under Chapter 9 of Title 11 of |
19 | | the United States Bankruptcy Code or take other similar |
20 | | action for the adjustment of its debts. |
21 | | (16) To enter into management agreements for the |
22 | | operation of any of the property or facilities owned by the |
23 | | Agency. |
24 | | (17) To enter into an agreement to transfer and to |
25 | | transfer any land, facilities, fixtures, or equipment of |
26 | | the Agency to one or more municipal electric systems, |
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1 | | governmental aggregators, or rural electric agencies or |
2 | | cooperatives, for such consideration and upon such terms as |
3 | | the Agency may determine to be in the best interest of the |
4 | | citizens of Illinois. |
5 | | (18) To enter upon any lands and within any building |
6 | | whenever in its judgment it may be necessary for the |
7 | | purpose of making surveys and examinations to accomplish |
8 | | any purpose authorized by this Act. |
9 | | (19) To maintain an office or offices at such place or |
10 | | places in the State as it may determine. |
11 | | (20) To request information, and to make any inquiry, |
12 | | investigation, survey, or study that the Agency may deem |
13 | | necessary to enable it effectively to carry out the |
14 | | provisions of this Act. |
15 | | (21) To accept and expend appropriations. |
16 | | (22) To engage in any activity or operation that is |
17 | | incidental to and in furtherance of efficient operation to |
18 | | accomplish the Agency's purposes, including hiring |
19 | | employees that the Director deems essential for the |
20 | | operations of the Agency. |
21 | | (23) To adopt, revise, amend, and repeal rules with |
22 | | respect to its operations, properties, and facilities as |
23 | | may be necessary or convenient to carry out the purposes of |
24 | | this Act, subject to the provisions of the Illinois |
25 | | Administrative Procedure Act and Sections 1-22 and 1-35 of |
26 | | this Act. |
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1 | | (24) To establish and collect charges and fees as |
2 | | described in this Act.
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3 | | (25) To conduct competitive gasification feedstock |
4 | | procurement processes to procure the feedstocks for the |
5 | | clean coal SNG brownfield facility in accordance with the |
6 | | requirements of Section 1-78 of this Act. |
7 | | (26) To review, revise, and approve sourcing |
8 | | agreements and mediate and resolve disputes between gas |
9 | | utilities and the clean coal SNG brownfield facility |
10 | | pursuant to subsection (h-1) of Section 9-220 of the Public |
11 | | Utilities Act. |
12 | | (27) To request, review and accept proposals, execute |
13 | | contracts, purchase renewable energy credits and otherwise |
14 | | dedicate funds from the Illinois Power Agency Renewable |
15 | | Energy Resources Fund to create and carry out the |
16 | | objectives of the Illinois Solar for All program in |
17 | | accordance with Section 1-56 of this Act. |
18 | | (Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10; |
19 | | 97-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff. |
20 | | 10-26-11; 97-813, eff. 7-13-12.) |
21 | | (20 ILCS 3855/1-25)
|
22 | | Sec. 1-25. Agency subject to other laws. Unless otherwise |
23 | | stated, the Agency is subject to the provisions of all |
24 | | applicable laws, including but not limited to, each of the |
25 | | following: |
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1 | | (1) The State Records Act. |
2 | | (2) The Illinois Procurement Code, except that the |
3 | | Illinois Procurement Code does not apply to the hiring or |
4 | | payment of procurement administrators , or procurement |
5 | | planning consultants , third-party program managers, or |
6 | | other persons who will implement the programs described in |
7 | | Sections 1-56 and pursuant to Section 1-75 of the Illinois |
8 | | Power Agency Act. |
9 | | (3) The Freedom of Information Act. |
10 | | (4) The State Property Control Act. |
11 | | (5) (Blank). |
12 | | (6) The State Officials and Employees Ethics Act.
|
13 | | (Source: P.A. 97-618, eff. 10-26-11.) |
14 | | (20 ILCS 3855/1-56) |
15 | | Sec. 1-56. Illinois Power Agency Renewable Energy |
16 | | Resources Fund ; Illinois Solar for All Program . |
17 | | (a) The Illinois Power Agency Renewable Energy Resources |
18 | | Fund is created as a special fund in the State treasury. |
19 | | (b) The Illinois Power Agency Renewable Energy Resources |
20 | | Fund shall be administered by the Agency as described in this |
21 | | subsection (b), provided that the changes to this subsection |
22 | | (b) made by this amendatory Act of the 99th General Assembly |
23 | | shall not interfere with existing contracts under this Section. |
24 | | (1) The Illinois Power Agency Renewable Energy |
25 | | Resources Fund shall be used to purchase renewable energy |
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1 | | credits according to any approved procurement plan |
2 | | developed by the Agency prior to June 1, 2017. |
3 | | (2) The Illinois Power Agency Renewable Energy |
4 | | Resources Fund shall also be used to create the Illinois |
5 | | Solar for All Program, which shall include incentives for |
6 | | low-income distributed generation and community solar |
7 | | projects, and other associated approved expenditures. The |
8 | | objectives of the Illinois Solar for All Program are to |
9 | | bring photovoltaics to low-income communities in this |
10 | | State in a manner that maximizes the development of new |
11 | | photovoltaic generating facilities, to create a long-term, |
12 | | low-income solar marketplace throughout this State, to |
13 | | integrate, through interaction with stakeholders, with |
14 | | existing energy efficiency initiatives, and to minimize |
15 | | administrative costs. The Agency shall include a |
16 | | description of its proposed approach to the design, |
17 | | administration, implementation and evaluation of the |
18 | | Illinois Solar for All Program, as part of the long-term |
19 | | renewable resources procurement plan authorized by |
20 | | subsection (c) of Section 1-75 of this Act, and the program |
21 | | shall be designed to grow the low-income solar market. The |
22 | | Agency or utility, as applicable, shall purchase renewable |
23 | | energy credits from the (i) photovoltaic distributed |
24 | | renewable energy generation projects and (ii) community |
25 | | solar projects that are part of the long-term term |
26 | | renewable resources procurement plans approved by the |
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1 | | Commission. |
2 | | The Illinois Solar for All Program shall include the |
3 | | program offerings described in subparagraphs (A) through |
4 | | (D) of this paragraph (2), which the Agency shall implement |
5 | | through contracts with third-party providers and, subject |
6 | | to appropriation, pay the approximate amounts identified |
7 | | using monies available in the Illinois Power Agency |
8 | | Renewable Energy Resources Fund. Each contract for a |
9 | | program must require that the program will produce energy |
10 | | and economic benefits, at a level determined by the Agency |
11 | | to be reasonable, for the participating low income |
12 | | customers. The monies available in the Illinois Power |
13 | | Agency Renewable Energy Resources Fund shall be allocated |
14 | | among the programs described in this paragraph (2), as |
15 | | follows: 22.5% of these funds shall be allocated to |
16 | | programs described in subparagraph (A) of this paragraph |
17 | | (2), 37.5% of these funds shall be allocated to programs |
18 | | described in subparagraph (B) of this paragraph (2), 15% of |
19 | | these funds shall be allocated to programs described in |
20 | | subparagraph (C) of this paragraph (2), and 25% of these |
21 | | funds, but in no event more than $50,000,000, shall be |
22 | | allocated to programs described in subparagraph (D) of this |
23 | | paragraph (2). The allocation of funds among subparagraphs |
24 | | (A), (B), or (C) of this paragraph (2) may be changed if |
25 | | the Agency or administrator, through delegated authority, |
26 | | determines incentives in subparagraphs (A), (B), or (C) of |
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1 | | this paragraph (2) have not been adequately subscribed to |
2 | | fully utilize the Illinois Power Agency Renewable Energy |
3 | | Resources Fund. The determination shall include input |
4 | | through a stakeholder process. The program offerings |
5 | | described in subparagraphs (A) through (D) of this |
6 | | paragraph (2) shall also be implemented through contracts |
7 | | funded from such additional amounts as are allocated to one |
8 | | or more of the programs in the long-term renewable |
9 | | resources procurement plans as specified in subsection (c) |
10 | | of Section 1-75 of this Act and subparagraph (O) of |
11 | | paragraph (1) of such subsection (c). |
12 | | Contracts that will be paid with funds in the Illinois |
13 | | Power Agency Renewable Energy Resources Fund shall be |
14 | | executed by the Agency. Contracts that will be paid with |
15 | | funds collected by an electric utility shall be executed by |
16 | | the electric utility. |
17 | | Contracts under the Illinois Solar for All Program |
18 | | shall include an approach, as set forth in the long-term |
19 | | renewable resources procurement plans, to ensure the |
20 | | wholesale market value of the energy is credited to |
21 | | participating low-income customers or organizations and to |
22 | | ensure tangible economic benefits flow directly to program |
23 | | participants, except in the case of low-income |
24 | | multi-family housing where the low-income customer does |
25 | | not directly pay for energy. Priority shall be given to |
26 | | projects that demonstrate meaningful involvement of |
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1 | | low-income community members in designing the initial |
2 | | proposals. Acceptable proposals to implement projects must |
3 | | demonstrate the applicant's ability to conduct initial |
4 | | community outreach, education, and recruitment of |
5 | | low-income participants in the community. Projects must |
6 | | include job training opportunities if available. |
7 | | (A) Low-income distributed generation incentive. |
8 | | This program will provide incentives to low-income |
9 | | customers, either directly or through solar providers, |
10 | | to increase the participation of low-income households |
11 | | in photovoltaic on-site distributed generation. |
12 | | Companies participating in this program that install |
13 | | solar panels shall commit to hiring job trainees for a |
14 | | portion of their low-income installations, and an |
15 | | administrator shall facilitate partnering the |
16 | | companies that install solar panels with entities that |
17 | | provide solar panel installation job training. It is a |
18 | | goal of this program that a minimum of 25% of the |
19 | | incentives for this program be allocated to projects |
20 | | located within environmental justice communities. |
21 | | Contracts entered into under this paragraph may be |
22 | | entered into with an entity that will develop and |
23 | | administer the program and shall also include |
24 | | contracts for renewable energy credits from the |
25 | | photovoltaic distributed generation that is the |
26 | | subject of the program, as set forth in the long-term |
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1 | | renewable resources procurement plan. |
2 | | (B) Low-Income Community Solar Project Initiative. |
3 | | Incentives shall be offered to low-income customers, |
4 | | either directly or through developers, to increase the |
5 | | participation of low-income subscribers of community |
6 | | solar projects. The developer of each project shall |
7 | | identify its partnership with community stakeholders |
8 | | regarding the location, development, and participation |
9 | | in the project, provided that nothing shall preclude a |
10 | | project from including an anchor tenant that does not |
11 | | qualify as low-income. Incentives should also be |
12 | | offered to community solar projects that are 100% |
13 | | low-income subscriber owned, which includes low-income |
14 | | households, not-for-profit organizations, and |
15 | | affordable housing owners. It is a goal of this program |
16 | | that a minimum of 25% of the incentives for this |
17 | | program be allocated to community photovoltaic |
18 | | projects in environmental justice communities. |
19 | | Contracts entered into under this paragraph may be |
20 | | entered into with developers and shall also include |
21 | | contracts for renewable energy credits related to the |
22 | | program. |
23 | | (C) Incentives for non-profits and public |
24 | | facilities. Under this program funds shall be used to |
25 | | support on-site photovoltaic distributed renewable |
26 | | energy generation devices to serve the load associated |
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1 | | with not-for-profit customers and to support |
2 | | photovoltaic distributed renewable energy generation |
3 | | that use photovoltaic technology to serve the load |
4 | | associated with public sector customers taking service |
5 | | at public buildings. Contracts implementing programs |
6 | | under this subparagraph (C) may require certification |
7 | | that not less than the prevailing wage will be paid to |
8 | | employees who are engaged in construction and |
9 | | installation activities associated with the project. |
10 | | It is a goal of this program that at least 25% of the |
11 | | incentives for this program be allocated to projects |
12 | | located in environmental justice communities. For the |
13 | | purposes of this subparagraph (C), "prevailing wage" |
14 | | shall have the meaning set forth in subsection (c) of |
15 | | Section 1-75 of this Act. Contracts entered into under |
16 | | this paragraph may be entered into with an entity that |
17 | | will develop and administer the program or with |
18 | | developers and shall also include contracts for |
19 | | renewable energy credits related to the program. |
20 | | (D) Low-Income Community Solar Pilot Projects. |
21 | | Under this program, persons, including, but not |
22 | | limited to, electric utilities, shall propose pilot |
23 | | community solar projects. Community solar projects |
24 | | proposed under this subparagraph (D) may exceed 2,000 |
25 | | kilowatts in nameplate capacity, but the amount paid |
26 | | per project under this program may not exceed |
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1 | | $20,000,000. Pilot projects must result in economic |
2 | | benefits for the members of the community in which the |
3 | | project will be located. The proposed pilot project |
4 | | must include a partnership with at least one |
5 | | community-based organization. Approved pilot projects |
6 | | shall be competitively bid by the Agency, subject to |
7 | | fair and equitable guidelines developed by the Agency. |
8 | | Funding available under this subparagraph (D) may not |
9 | | be distributed solely to a utility, and at least some |
10 | | funds under this subparagraph (D) must include a |
11 | | project partnership that includes community ownership |
12 | | by the project subscribers. Contracts entered into |
13 | | under this paragraph may be entered into with an entity |
14 | | that will develop and administer the program or with |
15 | | developers and shall also include contracts for |
16 | | renewable energy credits related to the program. A |
17 | | project proposed by a utility that is implemented under |
18 | | this subparagraph (D) shall not be included in the |
19 | | utility's ratebase. |
20 | | The requirement that a qualified person, as defined in |
21 | | paragraph (1) of subsection (i) of this Section, install |
22 | | photovoltaic devices does not apply to the Illinois Solar |
23 | | for All Program described in this subsection (b). |
24 | | (3) Costs associated with the Illinois Solar for All |
25 | | Program and its components described in paragraph (2) of |
26 | | this subsection (b), including, but not limited to, costs |
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1 | | associated with procuring experts, consultants, and the |
2 | | program administrator referenced in this subsection (b) |
3 | | and related incremental costs, and costs related to the |
4 | | evaluation of the Illinois Solar for All Program, may be |
5 | | paid for using monies in the Illinois Power Agency |
6 | | Renewable Energy Resources Fund, but the Agency or program |
7 | | administrator shall strive to minimize costs in the |
8 | | implementation of the program. The Agency shall purchase |
9 | | renewable energy credits from generation that is the |
10 | | subject of a contract under subparagraphs (A) through (D) |
11 | | of this paragraph (2) of this subsection (b), and may pay |
12 | | for such renewable energy credits through an upfront |
13 | | payment per installed kilowatt of nameplate capacity paid |
14 | | once the device is interconnected at the distribution |
15 | | system level of the utility and is energized. The payment |
16 | | shall be in exchange for an assignment of all renewable |
17 | | energy credits generated by the system during the first 15 |
18 | | years of operation and shall be structured to overcome |
19 | | barriers to participation in the solar market by the |
20 | | low-income community. The incentives provided for in this |
21 | | Section may be implemented through the pricing of renewable |
22 | | energy credits where the prices paid for the credits are |
23 | | higher than they would otherwise be to account for the |
24 | | incentives. The Agency shall ensure collaboration with |
25 | | community agencies, and allocate up to 5% of the funds |
26 | | available under the Illinois Solar for All Program to |
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1 | | community-based groups to assist in grassroots education |
2 | | efforts related to the Illinois Solar for All Program. The |
3 | | Agency shall retire any renewable energy credits purchased |
4 | | from this program and the credits shall count towards the |
5 | | obligation under subsection (c) of Section 1-75 of this Act |
6 | | for the electric utility to which the project is |
7 | | interconnected. |
8 | | (4) The Agency shall, consistent with the requirements |
9 | | of this subsection (b), propose the Illinois Solar for All |
10 | | Program terms, conditions, and requirements, including the |
11 | | prices to be paid for renewable energy credits, and which |
12 | | prices may be determined through a formula, through the |
13 | | development, review, and approval of the Agency's |
14 | | long-term renewable resources procurement plan described |
15 | | in subsection (c) of Section 1-75 of this Act and Section |
16 | | 16-111.5 of the Public Utilities Act. In the course of the |
17 | | Commission proceeding initiated to review and approve the |
18 | | plan, including the Illinois Solar for All Program proposed |
19 | | by the Agency, a party may propose an additional low-income |
20 | | solar or solar incentive program, or modifications to the |
21 | | programs proposed by the Agency, and the Commission may |
22 | | approve an additional program, or modifications to the |
23 | | Agency's proposed program, if the additional or modified |
24 | | program more effectively maximizes the benefits to |
25 | | low-income customers after taking into account all |
26 | | relevant factors, including, but not limited to, the extent |
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1 | | to which a competitive market for low-income solar has |
2 | | developed. Following the Commission's approval of the |
3 | | Illinois Solar for All Program, the Agency or a party may |
4 | | propose adjustments to the program terms, conditions, and |
5 | | requirements, including the price offered to new systems, |
6 | | to ensure the long-term viability and success of the |
7 | | program. The Commission shall review and approve any |
8 | | modifications to the program through the plan revision |
9 | | process described in Section 16-111.5 of the Public |
10 | | Utilities Act. |
11 | | (5) The Agency shall issue a request for qualifications |
12 | | for a third-party program administrator or administrators |
13 | | to administer all or a portion of the Illinois Solar for |
14 | | All Program. The third-party program administrator shall |
15 | | be chosen through a competitive bid process based on |
16 | | selection criteria and requirements developed by the |
17 | | Agency, including, but not limited to, experience in |
18 | | administering low-income energy programs and overseeing |
19 | | statewide clean energy or energy efficiency services. If |
20 | | the Agency retains a program administrator or |
21 | | administrators to implement all or a portion of the |
22 | | Illinois Solar for All Program, each administrator shall |
23 | | periodically submit reports to the Agency and Commission |
24 | | for each program that it administers, at appropriate |
25 | | intervals to be identified by the Agency in its long-term |
26 | | renewable resources procurement plan, provided that the |
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1 | | reporting interval is at least quarterly. |
2 | | (6) The long-term renewable resources procurement plan |
3 | | shall also provide for an independent evaluation of the |
4 | | Illinois Solar for All Program. At least every 2 years, the |
5 | | Agency shall select an independent evaluator to review and |
6 | | report on the Illinois Solar for All Program and the |
7 | | performance of the third-party program administrator of |
8 | | the Illinois Solar for All Program. The evaluation shall be |
9 | | based on objective criteria developed through a public |
10 | | stakeholder process. The process shall include feedback |
11 | | and participation from Illinois Solar for All Program |
12 | | stakeholders, including participants in environmental |
13 | | justice and historically underserved communities. The |
14 | | report shall include a summary of the evaluation of the |
15 | | Illinois Solar for All Program based on the stakeholder |
16 | | developed objective criteria. The report shall include the |
17 | | number of projects installed; the total installed capacity |
18 | | in kilowatts; the average cost per kilowatt of installed |
19 | | capacity to the extent reasonably obtainable by the Agency; |
20 | | economic, social, and environmental benefits created; and |
21 | | the total administrative costs expended by the Agency and |
22 | | program administrator to implement and evaluate the |
23 | | program. The report shall be delivered to the Commission |
24 | | and posted on the Agency's website, and shall be used, as |
25 | | needed, to revise the Illinois Solar for All Program. The |
26 | | Commission shall also consider the results of the |
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1 | | evaluation as part of its review of the long-term renewable |
2 | | resources procurement plan under subsection (c) of Section |
3 | | 1-75 of this Act. |
4 | | (7) If additional funding for the programs described in |
5 | | this subsection (b) is available under subsection (k) of |
6 | | Section 16-108 of the Public Utilities Act, then the Agency |
7 | | shall submit a procurement plan to the Commission no later |
8 | | than September 1, 2018, that proposes how the Agency will |
9 | | procure programs on behalf of the applicable utility. After |
10 | | notice and hearing, the Commission shall approve, or |
11 | | approve with modification, the plan no later than November |
12 | | 1, 2018. |
13 | | As used in this subsection (b), "lower-income households" |
14 | | means persons and families whose income does not exceed 80% of |
15 | | area median income, adjusted for family size and revised every |
16 | | 5 years. |
17 | | For the purposes of this subsection (b), the Agency shall |
18 | | define "environmental justice community" as part of program |
19 | | development, to ensure, to the extent practicable, |
20 | | compatibility with other agencies' definitions and may, for |
21 | | guidance, look to the definitions used by federal, state, or |
22 | | local governments. |
23 | | (b-5) After the receipt of all payments required by Section |
24 | | 16-115D of the Public Utilities Act, no additional funds shall |
25 | | be deposited into the Illinois Power Agency Renewable Energy |
26 | | Resources Fund unless directed by order of the Commission. |
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1 | | (b-10) After the receipt of all payments required by |
2 | | Section 16-115D of the Public Utilities Act and payment in full |
3 | | of all contracts executed by the Agency under subsections (b) |
4 | | and (i) of this Section, if the balance of the Illinois Power |
5 | | Agency Renewable Energy Resources Fund is under $5,000, then |
6 | | the Fund shall be inoperative and any remaining funds and any |
7 | | funds submitted to the Fund after that date, shall be |
8 | | transferred to the Supplemental Low-Income Energy Assistance |
9 | | Fund for use in the Low-Income Home Energy Assistance Program, |
10 | | as authorized by the Energy Assistance Act. to procure |
11 | | renewable energy resources. Prior to June 1, 2011, resources |
12 | | procured pursuant to this Section shall be procured from |
13 | | facilities located in Illinois, provided the resources are |
14 | | available from those facilities. If resources are not available |
15 | | in Illinois, then they shall be procured in states that adjoin |
16 | | Illinois. If resources are not available in Illinois or in |
17 | | states that adjoin Illinois, then they may be purchased |
18 | | elsewhere. Beginning June 1, 2011, resources procured pursuant |
19 | | to this Section shall be procured from facilities located in |
20 | | Illinois or states that adjoin Illinois. If resources are not |
21 | | available in Illinois or in states that adjoin Illinois, then |
22 | | they may be procured elsewhere. To the extent available, at |
23 | | least 75% of these renewable energy resources shall come from |
24 | | wind generation. Of the renewable energy resources procured |
25 | | pursuant to this Section at least the following specified |
26 | | percentages shall come from photovoltaics on the following |
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1 | | schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by |
2 | | June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the |
3 | | renewable energy resources procured pursuant to this Section, |
4 | | at least the following percentages shall come from distributed |
5 | | renewable energy generation devices: 0.5% by June 1, 2013, |
6 | | 0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. |
7 | | To the extent available, half of the renewable energy resources |
8 | | procured from distributed renewable energy generation shall |
9 | | come from devices of less than 25 kilowatts in nameplate |
10 | | capacity. Renewable energy resources procured from distributed |
11 | | generation devices may also count towards the required |
12 | | percentages for wind and solar photovoltaics. Procurement of |
13 | | renewable energy resources from distributed renewable energy |
14 | | generation devices shall be done on an annual basis through |
15 | | multi-year contracts of no less than 5 years, and shall consist |
16 | | solely of renewable energy credits. |
17 | | The Agency shall create credit requirements for suppliers |
18 | | of distributed renewable energy. In order to minimize the |
19 | | administrative burden on contracting entities, the Agency |
20 | | shall solicit the use of third-party organizations to aggregate |
21 | | distributed renewable energy into groups of no less than one |
22 | | megawatt in installed capacity. These third-party |
23 | | organizations shall administer contracts with individual |
24 | | distributed renewable energy generation device owners. An |
25 | | individual distributed renewable energy generation device |
26 | | owner shall have the ability to measure the output of his or |
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1 | | her distributed renewable energy generation device. |
2 | | (c) (Blank). The Agency shall procure renewable energy |
3 | | resources at least once each year in conjunction with a |
4 | | procurement event for electric utilities required to comply |
5 | | with Section 1-75 of the Act and shall, whenever possible, |
6 | | enter into long-term contracts on an annual basis for a portion |
7 | | of the incremental requirement for the given procurement year. |
8 | | (d) (Blank). The price paid to procure renewable energy |
9 | | credits using monies from the Illinois Power Agency Renewable |
10 | | Energy Resources Fund shall not exceed the winning bid prices |
11 | | paid for like resources procured for electric utilities |
12 | | required to comply with Section 1-75 of this Act. |
13 | | (e) All renewable energy credits procured using monies from |
14 | | the Illinois Power Agency Renewable Energy Resources Fund shall |
15 | | be permanently retired. |
16 | | (f) The selection of one or more third-party program |
17 | | managers or administrators, the selection of the independent |
18 | | evaluator, and the procurement processes described in this |
19 | | Section are exempt from the requirements of the Illinois |
20 | | Procurement Code, under Section 20-10 of that Code. The |
21 | | procurement process described in this Section is exempt from |
22 | | the requirements of the Illinois Procurement Code, pursuant to |
23 | | Section 20-10 of that Code. |
24 | | (g) All disbursements from the Illinois Power Agency |
25 | | Renewable Energy Resources Fund shall be made only upon |
26 | | warrants of the Comptroller drawn upon the Treasurer as |
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1 | | custodian of the Fund upon vouchers signed by the Director or |
2 | | by the person or persons designated by the Director for that |
3 | | purpose. The Comptroller is authorized to draw the warrant upon |
4 | | vouchers so signed. The Treasurer shall accept all warrants so |
5 | | signed and shall be released from liability for all payments |
6 | | made on those warrants. |
7 | | (h) The Illinois Power Agency Renewable Energy Resources |
8 | | Fund shall not be subject to sweeps, administrative charges, or |
9 | | chargebacks, including, but not limited to, those authorized |
10 | | under Section 8h of the State Finance Act, that would in any |
11 | | way result in the transfer of any funds from this Fund to any |
12 | | other fund of this State or in having any such funds utilized |
13 | | for any purpose other than the express purposes set forth in |
14 | | this Section.
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15 | | (h-5) The Agency may assess fees to each bidder to recover |
16 | | the costs incurred in connection with a procurement process |
17 | | held under this Section. |
18 | | (i) Supplemental procurement process. |
19 | | (1) Within 90 days after the effective date of this |
20 | | amendatory Act of the 98th General Assembly, the Agency |
21 | | shall develop a one-time supplemental procurement plan |
22 | | limited to the procurement of renewable energy credits, if |
23 | | available, from new or existing photovoltaics, including, |
24 | | but not limited to, distributed photovoltaic generation. |
25 | | Nothing in this subsection (i) requires procurement of wind |
26 | | generation through the supplemental procurement. |
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1 | | Renewable energy credits procured from new |
2 | | photovoltaics, including, but not limited to, distributed |
3 | | photovoltaic generation, under this subsection (i) must be |
4 | | procured from devices installed by a qualified person. In |
5 | | its supplemental procurement plan, the Agency shall |
6 | | establish contractually enforceable mechanisms for |
7 | | ensuring that the installation of new photovoltaics is |
8 | | performed by a qualified person. |
9 | | For the purposes of this paragraph (1), "qualified |
10 | | person" means a person who performs installations of |
11 | | photovoltaics, including, but not limited to, distributed |
12 | | photovoltaic generation, and who: (A) has completed an |
13 | | apprenticeship as a journeyman electrician from a United |
14 | | States Department of Labor registered electrical |
15 | | apprenticeship and training program and received a |
16 | | certification of satisfactory completion; or (B) does not |
17 | | currently meet the criteria under clause (A) of this |
18 | | paragraph (1), but is enrolled in a United States |
19 | | Department of Labor registered electrical apprenticeship |
20 | | program, provided that the person is directly supervised by |
21 | | a person who meets the criteria under clause (A) of this |
22 | | paragraph (1); or (C) has obtained one of the following |
23 | | credentials in addition to attesting to satisfactory |
24 | | completion of at least 5 years or 8,000 hours of documented |
25 | | hands-on electrical experience: (i) a North American Board |
26 | | of Certified Energy Practitioners (NABCEP) Installer |
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1 | | Certificate for Solar PV; (ii) an Underwriters |
2 | | Laboratories (UL) PV Systems Installer Certificate; (iii) |
3 | | an Electronics Technicians Association, International |
4 | | (ETAI) Level 3 PV Installer Certificate; or (iv) an |
5 | | Associate in Applied Science degree from an Illinois |
6 | | Community College Board approved community college program |
7 | | in renewable energy or a distributed generation |
8 | | technology. |
9 | | For the purposes of this paragraph (1), "directly |
10 | | supervised" means that there is a qualified person who |
11 | | meets the qualifications under clause (A) of this paragraph |
12 | | (1) and who is available for supervision and consultation |
13 | | regarding the work performed by persons under clause (B) of |
14 | | this paragraph (1), including a final inspection of the |
15 | | installation work that has been directly supervised to |
16 | | ensure safety and conformity with applicable codes. |
17 | | For the purposes of this paragraph (1), "install" means |
18 | | the major activities and actions required to connect, in |
19 | | accordance with applicable building and electrical codes, |
20 | | the conductors, connectors, and all associated fittings, |
21 | | devices, power outlets, or apparatuses mounted at the |
22 | | premises that are directly involved in delivering energy to |
23 | | the premises' electrical wiring from the photovoltaics, |
24 | | including, but not limited to, to distributed photovoltaic |
25 | | generation. |
26 | | The renewable energy credits procured pursuant to the |
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1 | | supplemental procurement plan shall be procured using up to |
2 | | $30,000,000 from the Illinois Power Agency Renewable |
3 | | Energy Resources Fund. The Agency shall not plan to use |
4 | | funds from the Illinois Power Agency Renewable Energy |
5 | | Resources Fund in excess of the monies on deposit in such |
6 | | fund or projected to be deposited into such fund. The |
7 | | supplemental procurement plan shall ensure adequate, |
8 | | reliable, affordable, efficient, and environmentally |
9 | | sustainable renewable energy resources (including credits) |
10 | | at the lowest total cost over time, taking into account any |
11 | | benefits of price stability. |
12 | | To the extent available, 50% of the renewable energy |
13 | | credits procured from distributed renewable energy |
14 | | generation shall come from devices of less than 25 |
15 | | kilowatts in nameplate capacity. Procurement of renewable |
16 | | energy credits from distributed renewable energy |
17 | | generation devices shall be done through multi-year |
18 | | contracts of no less than 5 years. The Agency shall create |
19 | | credit requirements for counterparties. In order to |
20 | | minimize the administrative burden on contracting |
21 | | entities, the Agency shall solicit the use of third parties |
22 | | to aggregate distributed renewable energy. These third |
23 | | parties shall enter into and administer contracts with |
24 | | individual distributed renewable energy generation device |
25 | | owners. An individual distributed renewable energy |
26 | | generation device owner shall
have the ability to measure |
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1 | | the output of his or her distributed renewable energy |
2 | | generation device. |
3 | | In developing the supplemental procurement plan, the |
4 | | Agency shall hold at least one workshop open to the public |
5 | | within 90 days after the effective date of this amendatory |
6 | | Act of the 98th General Assembly and shall consider any |
7 | | comments made by stakeholders or the public. Upon |
8 | | development of the supplemental procurement plan within |
9 | | this 90-day period, copies of the supplemental procurement |
10 | | plan shall be posted and made publicly available on the |
11 | | Agency's and Commission's websites. All interested parties |
12 | | shall have 14 days following the date of posting to provide |
13 | | comment to the Agency on the supplemental procurement plan. |
14 | | All comments submitted to the Agency shall be specific, |
15 | | supported by data or other detailed analyses, and, if |
16 | | objecting to all or a portion of the supplemental |
17 | | procurement plan, accompanied by specific alternative |
18 | | wording or proposals. All comments shall be posted on the |
19 | | Agency's and Commission's websites. Within 14 days |
20 | | following the end of the 14-day review period, the Agency |
21 | | shall revise the supplemental procurement plan as |
22 | | necessary based on the comments received and file its |
23 | | revised supplemental procurement plan with the Commission |
24 | | for approval. |
25 | | (2) Within 5 days after the filing of the supplemental |
26 | | procurement plan at the Commission, any person objecting to |
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1 | | the supplemental procurement plan shall file an objection |
2 | | with the Commission. Within 10 days after the filing, the |
3 | | Commission shall determine whether a hearing is necessary. |
4 | | The Commission shall enter its order confirming or |
5 | | modifying the supplemental procurement plan within 90 days |
6 | | after the filing of the supplemental procurement plan by |
7 | | the Agency. |
8 | | (3) The Commission shall approve the supplemental |
9 | | procurement plan of renewable energy credits to be procured |
10 | | from new or existing photovoltaics, including, but not |
11 | | limited to, distributed photovoltaic generation, if the |
12 | | Commission determines that it will ensure adequate, |
13 | | reliable, affordable, efficient, and environmentally |
14 | | sustainable electric service in the form of renewable |
15 | | energy credits at the lowest total cost over time, taking |
16 | | into account any benefits of price stability. |
17 | | (4) The supplemental procurement process under this |
18 | | subsection (i) shall include each of the following |
19 | | components: |
20 | | (A) Procurement administrator. The Agency may |
21 | | retain a procurement administrator in the manner set |
22 | | forth in item (2) of subsection (a) of Section 1-75 of |
23 | | this Act to conduct the supplemental procurement or may |
24 | | elect to use the same procurement administrator |
25 | | administering the Agency's annual procurement under |
26 | | Section 1-75. |
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1 | | (B) Procurement monitor. The procurement monitor |
2 | | retained by the Commission pursuant to Section |
3 | | 16-111.5 of the Public Utilities Act shall: |
4 | | (i) monitor interactions among the procurement |
5 | | administrator and bidders and suppliers; |
6 | | (ii) monitor and report to the Commission on |
7 | | the progress of the supplemental procurement |
8 | | process; |
9 | | (iii) provide an independent confidential |
10 | | report to the Commission regarding the results of |
11 | | the procurement events; |
12 | | (iv) assess compliance with the procurement |
13 | | plan approved by the Commission for the |
14 | | supplemental procurement process; |
15 | | (v) preserve the confidentiality of supplier |
16 | | and bidding information in a manner consistent |
17 | | with all applicable laws, rules, regulations, and |
18 | | tariffs; |
19 | | (vi) provide expert advice to the Commission |
20 | | and consult with the procurement administrator |
21 | | regarding issues related to procurement process |
22 | | design, rules, protocols, and policy-related |
23 | | matters; |
24 | | (vii) consult with the procurement |
25 | | administrator regarding the development and use of |
26 | | benchmark criteria, standard form contracts, |
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1 | | credit policies, and bid documents; and |
2 | | (viii) perform, with respect to the |
3 | | supplemental procurement process, any other |
4 | | procurement monitor duties specifically delineated |
5 | | within subsection (i) of this Section. |
6 | | (C) Solicitation, pre-qualification, and |
7 | | registration of bidders. The procurement administrator |
8 | | shall disseminate information to potential bidders to |
9 | | promote a procurement event, notify potential bidders |
10 | | that the procurement administrator may enter into a |
11 | | post-bid price negotiation with bidders that meet the |
12 | | applicable benchmarks, provide supply requirements, |
13 | | and otherwise explain the competitive procurement |
14 | | process. In addition to such other publication as the |
15 | | procurement administrator determines is appropriate, |
16 | | this information shall be posted on the Agency's and |
17 | | the Commission's websites. The procurement |
18 | | administrator shall also administer the |
19 | | prequalification process, including evaluation of |
20 | | credit worthiness, compliance with procurement rules, |
21 | | and agreement to the standard form contract developed |
22 | | pursuant to item (D) of this paragraph (4). The |
23 | | procurement administrator shall then identify and |
24 | | register bidders to participate in the procurement |
25 | | event. |
26 | | (D) Standard contract forms and credit terms and |
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1 | | instruments. The procurement administrator, in |
2 | | consultation with the Agency, the Commission, and |
3 | | other interested parties and subject to Commission |
4 | | oversight, shall develop and provide standard contract |
5 | | forms for the supplier contracts that meet generally |
6 | | accepted industry practices as well as include any |
7 | | applicable State of Illinois terms and conditions that |
8 | | are required for contracts entered into by an agency of |
9 | | the State of Illinois. Standard credit terms and |
10 | | instruments that meet generally accepted industry |
11 | | practices shall be similarly developed. Contracts for |
12 | | new photovoltaics shall include a provision attesting |
13 | | that the supplier will use a qualified person for the |
14 | | installation of the device pursuant to paragraph (1) of |
15 | | subsection (i) of this Section. The procurement |
16 | | administrator shall make available to the Commission |
17 | | all written comments it receives on the contract forms,
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18 | | credit terms, or instruments. If the procurement |
19 | | administrator cannot reach agreement with the parties |
20 | | as to the contract terms and conditions, the |
21 | | procurement administrator must notify the Commission |
22 | | of any disputed terms and the Commission shall resolve |
23 | | the dispute. The terms of the contracts shall not be |
24 | | subject to negotiation by winning bidders, and the |
25 | | bidders must agree to the terms of the contract in |
26 | | advance so that winning bids are selected solely on the |
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1 | | basis of price. |
2 | | (E) Requests for proposals; competitive |
3 | | procurement process. The procurement administrator |
4 | | shall design and issue requests for proposals to supply |
5 | | renewable energy credits in accordance with the |
6 | | supplemental procurement plan, as approved by the |
7 | | Commission. The requests for proposals shall set forth |
8 | | a procedure for sealed, binding commitment bidding |
9 | | with pay-as-bid settlement, and provision for |
10 | | selection of bids on the basis of price, provided, |
11 | | however, that no bid shall be accepted if it exceeds |
12 | | the benchmark developed pursuant to item (F) of this |
13 | | paragraph (4). |
14 | | (F) Benchmarks. Benchmarks for each product to be |
15 | | procured shall be developed by the procurement |
16 | | administrator in consultation with Commission staff, |
17 | | the Agency, and the procurement monitor for use in this |
18 | | supplemental procurement. |
19 | | (G) A plan for implementing contingencies in the |
20 | | event of supplier default, Commission rejection of |
21 | | results, or any other cause. |
22 | | (5) Within 2 business days after opening the sealed |
23 | | bids, the procurement administrator shall submit a |
24 | | confidential report to the Commission. The report shall |
25 | | contain the results of the bidding for each of the products |
26 | | along with the procurement administrator's recommendation |
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1 | | for the acceptance and rejection of bids based on the price |
2 | | benchmark criteria and other factors observed in the |
3 | | process. The procurement monitor also shall submit a |
4 | | confidential report to the Commission within 2 business |
5 | | days after opening the sealed bids. The report shall |
6 | | contain the procurement monitor's assessment of bidder |
7 | | behavior in the process as well as an assessment of the |
8 | | procurement administrator's compliance with the |
9 | | procurement process and rules. The Commission shall review |
10 | | the confidential reports submitted by the procurement |
11 | | administrator and procurement monitor and shall accept or |
12 | | reject the recommendations of the procurement |
13 | | administrator within 2 business days after receipt of the |
14 | | reports. |
15 | | (6) Within 3 business days after the Commission |
16 | | decision approving the results of a procurement event, the |
17 | | Agency shall enter into binding contractual arrangements |
18 | | with the winning suppliers using the standard form |
19 | | contracts. |
20 | | (7) The names of the successful bidders and the average |
21 | | of the winning bid prices for each contract type and for |
22 | | each contract term shall be made available to the public |
23 | | within 2 days after the supplemental procurement event. The |
24 | | Commission, the procurement monitor, the procurement |
25 | | administrator, the Agency, and all participants in the |
26 | | procurement process shall maintain the confidentiality of |
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1 | | all other supplier and bidding information in a manner |
2 | | consistent with all applicable laws, rules, regulations, |
3 | | and tariffs. Confidential information, including the |
4 | | confidential reports submitted by the procurement |
5 | | administrator and procurement monitor pursuant to this |
6 | | Section, shall not be made publicly available and shall not |
7 | | be discoverable by any party in any proceeding, absent a |
8 | | compelling demonstration of need, nor shall those reports |
9 | | be admissible in any proceeding other than one for law |
10 | | enforcement purposes. |
11 | | (8) The supplemental procurement provided in this |
12 | | subsection (i) shall not be subject to the requirements and |
13 | | limitations of subsections (c) and (d) of this Section. |
14 | | (9) Expenses incurred in connection with the |
15 | | procurement process held pursuant to this Section, |
16 | | including, but not limited to, the cost of developing the |
17 | | supplemental procurement plan, the procurement |
18 | | administrator, procurement monitor, and the cost of the |
19 | | retirement of renewable energy credits purchased pursuant |
20 | | to the supplemental procurement shall be paid for from the |
21 | | Illinois Power Agency Renewable Energy Resources Fund. The |
22 | | Agency shall enter into an interagency agreement with the |
23 | | Commission to reimburse the Commission for its costs |
24 | | associated with the procurement monitor for the |
25 | | supplemental procurement process. |
26 | | (Source: P.A. 97-616, eff. 10-26-11; 98-672, eff. 6-30-14.) |
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1 | | (20 ILCS 3855/1-75) |
2 | | Sec. 1-75. Planning and Procurement Bureau. The Planning |
3 | | and Procurement Bureau has the following duties and |
4 | | responsibilities: |
5 | | (a) The Planning and Procurement Bureau shall each year, |
6 | | beginning in 2008, develop procurement plans and conduct |
7 | | competitive procurement processes in accordance with the |
8 | | requirements of Section 16-111.5 of the Public Utilities Act |
9 | | for the eligible retail customers of electric utilities that on |
10 | | December 31, 2005 provided electric service to at least 100,000 |
11 | | customers in Illinois. Beginning with the delivery year |
12 | | commencing on June 1, 2017, the Planning and Procurement Bureau |
13 | | shall develop plans and processes for the procurement of zero |
14 | | emission credits from zero emission facilities in accordance |
15 | | with the requirements of subsection (d-5) of this Section. The |
16 | | Planning and Procurement Bureau shall also develop procurement |
17 | | plans and conduct competitive procurement processes in |
18 | | accordance with the requirements of Section 16-111.5 of the |
19 | | Public Utilities Act for the eligible retail customers of small |
20 | | multi-jurisdictional electric utilities that (i) on December |
21 | | 31, 2005 served less than 100,000 customers in Illinois and |
22 | | (ii) request a procurement plan for their Illinois |
23 | | jurisdictional load. This Section shall not apply to a small |
24 | | multi-jurisdictional utility until such time as a small |
25 | | multi-jurisdictional utility requests the Agency to prepare a |
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1 | | procurement plan for their Illinois jurisdictional load. For |
2 | | the purposes of this Section, the term "eligible retail |
3 | | customers" has the same definition as found in Section |
4 | | 16-111.5(a) of the Public Utilities Act. |
5 | | Beginning with the planning process for the plan or plans |
6 | | to be implemented in the 2017 delivery year, the Agency shall |
7 | | no longer include the procurement of renewable energy resources |
8 | | in the annual procurement plans required by this subsection (a) |
9 | | and shall instead develop a long-term renewable resources |
10 | | procurement plan in accordance with subsection (c) of this |
11 | | Section and Section 16-111.5 of the Public Utilities Act. |
12 | | (1) The Agency shall each year, beginning in 2008, as |
13 | | needed, issue a request for qualifications for experts or |
14 | | expert consulting firms to develop the procurement plans in |
15 | | accordance with Section 16-111.5 of the Public Utilities |
16 | | Act. In order to qualify an expert or expert consulting |
17 | | firm must have: |
18 | | (A) direct previous experience assembling |
19 | | large-scale power supply plans or portfolios for |
20 | | end-use customers; |
21 | | (B) an advanced degree in economics, mathematics, |
22 | | engineering, risk management, or a related area of |
23 | | study; |
24 | | (C) 10 years of experience in the electricity |
25 | | sector, including managing supply risk; |
26 | | (D) expertise in wholesale electricity market |
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1 | | rules, including those established by the Federal |
2 | | Energy Regulatory Commission and regional transmission |
3 | | organizations; |
4 | | (E) expertise in credit protocols and familiarity |
5 | | with contract protocols; |
6 | | (F) adequate resources to perform and fulfill the |
7 | | required functions and responsibilities; and |
8 | | (G) the absence of a conflict of interest and |
9 | | inappropriate bias for or against potential bidders or |
10 | | the affected electric utilities. |
11 | | (2) The Agency shall each year, as needed, issue a |
12 | | request for qualifications for a procurement administrator |
13 | | to conduct the competitive procurement processes in |
14 | | accordance with Section 16-111.5 of the Public Utilities |
15 | | Act. In order to qualify an expert or expert consulting |
16 | | firm must have: |
17 | | (A) direct previous experience administering a |
18 | | large-scale competitive procurement process; |
19 | | (B) an advanced degree in economics, mathematics, |
20 | | engineering, or a related area of study; |
21 | | (C) 10 years of experience in the electricity |
22 | | sector, including risk management experience; |
23 | | (D) expertise in wholesale electricity market |
24 | | rules, including those established by the Federal |
25 | | Energy Regulatory Commission and regional transmission |
26 | | organizations; |
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1 | | (E) expertise in credit and contract protocols; |
2 | | (F) adequate resources to perform and fulfill the |
3 | | required functions and responsibilities; and |
4 | | (G) the absence of a conflict of interest and |
5 | | inappropriate bias for or against potential bidders or |
6 | | the affected electric utilities. |
7 | | (3) The Agency shall provide affected utilities and |
8 | | other interested parties with the lists of qualified |
9 | | experts or expert consulting firms identified through the |
10 | | request for qualifications processes that are under |
11 | | consideration to develop the procurement plans and to serve |
12 | | as the procurement administrator. The Agency shall also |
13 | | provide each qualified expert's or expert consulting |
14 | | firm's response to the request for qualifications. All |
15 | | information provided under this subparagraph shall also be |
16 | | provided to the Commission. The Agency may provide by rule |
17 | | for fees associated with supplying the information to |
18 | | utilities and other interested parties. These parties |
19 | | shall, within 5 business days, notify the Agency in writing |
20 | | if they object to any experts or expert consulting firms on |
21 | | the lists. Objections shall be based on: |
22 | | (A) failure to satisfy qualification criteria; |
23 | | (B) identification of a conflict of interest; or |
24 | | (C) evidence of inappropriate bias for or against |
25 | | potential bidders or the affected utilities. |
26 | | The Agency shall remove experts or expert consulting |
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1 | | firms from the lists within 10 days if there is a |
2 | | reasonable basis for an objection and provide the updated |
3 | | lists to the affected utilities and other interested |
4 | | parties. If the Agency fails to remove an expert or expert |
5 | | consulting firm from a list, an objecting party may seek |
6 | | review by the Commission within 5 days thereafter by filing |
7 | | a petition, and the Commission shall render a ruling on the |
8 | | petition within 10 days. There is no right of appeal of the |
9 | | Commission's ruling. |
10 | | (4) The Agency shall issue requests for proposals to |
11 | | the qualified experts or expert consulting firms to develop |
12 | | a procurement plan for the affected utilities and to serve |
13 | | as procurement administrator. |
14 | | (5) The Agency shall select an expert or expert |
15 | | consulting firm to develop procurement plans based on the |
16 | | proposals submitted and shall award contracts of up to 5 |
17 | | years to those selected. |
18 | | (6) The Agency shall select an expert or expert |
19 | | consulting firm, with approval of the Commission, to serve |
20 | | as procurement administrator based on the proposals |
21 | | submitted. If the Commission rejects, within 5 days, the |
22 | | Agency's selection, the Agency shall submit another |
23 | | recommendation within 3 days based on the proposals |
24 | | submitted. The Agency shall award a 5-year contract to the |
25 | | expert or expert consulting firm so selected with |
26 | | Commission approval. |
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1 | | (b) The experts or expert consulting firms retained by the |
2 | | Agency shall, as appropriate, prepare procurement plans, and |
3 | | conduct a competitive procurement process as prescribed in |
4 | | Section 16-111.5 of the Public Utilities Act, to ensure |
5 | | adequate, reliable, affordable, efficient, and environmentally |
6 | | sustainable electric service at the lowest total cost over |
7 | | time, taking into account any benefits of price stability, for |
8 | | eligible retail customers of electric utilities that on |
9 | | December 31, 2005 provided electric service to at least 100,000 |
10 | | customers in the State of Illinois, and for eligible Illinois |
11 | | retail customers of small multi-jurisdictional electric |
12 | | utilities that (i) on December 31, 2005 served less than |
13 | | 100,000 customers in Illinois and (ii) request a procurement |
14 | | plan for their Illinois jurisdictional load. |
15 | | (c) Renewable portfolio standard. |
16 | | (1) (A) The Agency shall develop a long-term renewable |
17 | | resources procurement plan that shall include procurement |
18 | | programs and competitive procurement events necessary to |
19 | | meet the goals set forth in this subsection (c). The |
20 | | initial long-term renewable resources procurement plan |
21 | | shall be released for comment no later than 120 days after |
22 | | the effective date of this amendatory Act of the 99th |
23 | | General Assembly. The Agency shall review, and may revise |
24 | | on an expedited basis, the long-term renewable resources |
25 | | procurement plan at least every 2 years, which shall be |
26 | | conducted in conjunction with the procurement plan under |
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1 | | Section 16-111.5 of the Public Utilities Act to the extent |
2 | | practicable to minimize administrative expense. The |
3 | | long-term renewable resources procurement plans shall be |
4 | | subject to review and approval by the Commission under |
5 | | Section 16-111.5 of the Public Utilities Act. |
6 | | (B) Subject to subparagraph (F) of this paragraph (1), |
7 | | the long-term renewable resources procurement plan shall |
8 | | include the goals for procurement of renewable energy |
9 | | credits to meet at least the following overall percentages: |
10 | | 13% by the 2017 delivery year; increasing by at least 1.5% |
11 | | each delivery year thereafter to at least 25% by the 2025 |
12 | | delivery year; and continuing at no less than 25% for each |
13 | | delivery year thereafter. In the event of a conflict |
14 | | between these goals and the new wind and new photovoltaic |
15 | | procurement requirements described in items (i) through |
16 | | (iii) of subparagraph (C) of this paragraph (1), the |
17 | | long-term plan shall prioritize compliance with the new |
18 | | wind and new photovoltaic procurement requirements |
19 | | described in items (i) through (iii) of subparagraph (C) of |
20 | | this paragraph (1) over the annual percentage targets |
21 | | described in this subparagraph (B). |
22 | | For the delivery year beginning June 1, 2017, the |
23 | | procurement plan shall include cost-effective renewable energy |
24 | | resources equal to at least 13% of each utility's load for |
25 | | eligible retail customers and 13% of the applicable portion of |
26 | | each utility's load for retail customers who are not eligible |
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1 | | retail customers, which applicable portion shall equal 50% of |
2 | | the utility's load for retail customers who are not eligible |
3 | | retail customers on February 28, 2017. |
4 | | For the delivery year beginning June 1, 2018, the |
5 | | procurement plan shall include cost-effective renewable energy |
6 | | resources equal to at least 14.5% of each utility's load for |
7 | | eligible retail customers and 14.5% of the applicable portion |
8 | | of each utility's load for retail customers who are not |
9 | | eligible retail customers, which applicable portion shall |
10 | | equal 75% of the utility's load for retail customers who are |
11 | | not eligible retail customers on February 28, 2017. |
12 | | For the delivery year beginning June 1, 2019, and for each |
13 | | year thereafter, the procurement plans shall include |
14 | | cost-effective renewable energy resources equal to a minimum |
15 | | percentage of each utility's load for all retail customers as |
16 | | follows: 16% by June 1, 2019; increasing by 1.5% each year |
17 | | thereafter to 25% by June 1, 2025; and 25% by June 1, 2026 and |
18 | | each year thereafter. |
19 | | For each delivery year, the Agency shall first |
20 | | recognize each utility's obligations for that delivery |
21 | | year under existing contracts. Any renewable energy |
22 | | credits under existing contracts, including renewable |
23 | | energy credits as part of renewable energy resources, shall |
24 | | be used to meet the goals set forth in this subsection (c) |
25 | | for the delivery year. |
26 | | (C) Of the renewable energy credits procured under this |
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1 | | subsection (c), at least 75% shall come from wind and |
2 | | photovoltaic projects. The long-term renewable resources |
3 | | procurement plan described in subparagraph (A) of this |
4 | | paragraph (1) shall include the procurement of renewable |
5 | | energy credits in amounts equal to at least the following: |
6 | | (i) By the end of the 2020 delivery year: |
7 | | At least 2,000,000 renewable energy credits |
8 | | for each delivery year shall come from new wind |
9 | | projects; and |
10 | | At least 2,000,000 renewable energy credits |
11 | | for each delivery year shall come from new |
12 | | photovoltaic projects; of that amount, to the |
13 | | extent possible, the Agency shall procure: at |
14 | | least 50% from solar photovoltaic projects using |
15 | | the program outlined in subparagraph (K) of this |
16 | | paragraph (1) from distributed renewable energy |
17 | | generation devices or community renewable |
18 | | generation projects; at least 40% from |
19 | | utility-scale solar projects; at least 2% from |
20 | | brownfield site photovoltaic projects that are not |
21 | | community renewable generation projects; and the |
22 | | remainder shall be determined through the |
23 | | long-term planning process described in |
24 | | subparagraph (A) of this paragraph (1). |
25 | | (ii) By the end of the 2025 delivery year: |
26 | | At least 3,000,000 renewable energy credits |
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1 | | for each delivery year shall come from new wind |
2 | | projects; and |
3 | | At least 3,000,000 renewable energy credits |
4 | | for each delivery year shall come from new |
5 | | photovoltaic projects; of that amount, to the |
6 | | extent possible, the Agency shall procure: at |
7 | | least 50% from solar photovoltaic projects using |
8 | | the program outlined in subparagraph (K) of this |
9 | | paragraph (1) from distributed renewable energy |
10 | | devices or community renewable generation |
11 | | projects; at least 40% from utility-scale solar |
12 | | projects; at least 2% from brownfield site |
13 | | photovoltaic projects that are not community |
14 | | renewable generation projects; and the remainder |
15 | | shall be determined through the long-term planning |
16 | | process described in subparagraph (A) of this |
17 | | paragraph (1). |
18 | | (iii) By the end of the 2030 delivery year: |
19 | | At least 4,000,000 renewable energy credits |
20 | | for each delivery year shall come from new wind |
21 | | projects; and |
22 | | At least 4,000,000 renewable energy credits |
23 | | for each delivery year shall come from new |
24 | | photovoltaic projects; of that amount, to the |
25 | | extent possible, the Agency shall procure: at |
26 | | least 50% from solar photovoltaic projects using |
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1 | | the program outlined in subparagraph (K) of this |
2 | | paragraph (1) from distributed renewable energy |
3 | | devices or community renewable generation |
4 | | projects; at least 40% from utility-scale solar |
5 | | projects; at least 2% from brownfield site |
6 | | photovoltaic projects that are not community |
7 | | renewable generation projects; and the remainder |
8 | | shall be determined through the long-term planning |
9 | | process described in subparagraph (A) of this |
10 | | paragraph (1). |
11 | | For purposes of this Section: |
12 | | "New wind projects" means wind renewable |
13 | | energy facilities that are energized after June 1, |
14 | | 2017 for the delivery year commencing June 1, 2017 |
15 | | or within 3 years after the date the Commission |
16 | | approves contracts for subsequent delivery years. |
17 | | For projects located within Illinois, the owner of |
18 | | the new wind project must certify that not less |
19 | | than the prevailing wage was or will be paid to |
20 | | employees who are engaged in construction |
21 | | activities associated with the project. |
22 | | "New photovoltaic projects" means photovoltaic |
23 | | renewable energy facilities that are energized |
24 | | after June 1, 2017. For projects over 1,000 |
25 | | kilowatts in nameplate capacity, the owner of the |
26 | | new photovoltaic project must certify that not |
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1 | | less than the prevailing wage was or will be paid |
2 | | to employees who are engaged in construction |
3 | | activities associated with the project. |
4 | | Photovoltaic projects developed under Section 1-56 |
5 | | of this Act shall not apply towards the new |
6 | | photovoltaic project requirements in this |
7 | | subparagraph (C). |
8 | | "Prevailing wage" has the same definition as |
9 | | in subparagraph (F) of paragraph (3) of subsection |
10 | | (a) of Section 5.5 of the Illinois Enterprise Zone |
11 | | Act. |
12 | | (D) Renewable energy credits shall be cost effective. |
13 | | For purposes of this subsection (c), "cost effective" means |
14 | | that the costs of procuring renewable energy resources do |
15 | | not cause the limit stated in subparagraph (E) of this |
16 | | paragraph (1) to be exceeded and, for renewable energy |
17 | | credits procured through a competitive procurement event, |
18 | | do not exceed benchmarks based on market prices for like |
19 | | products in the region. For purposes of this subsection |
20 | | (c), "like products" means contracts for renewable energy |
21 | | credits from the same or substantially similar technology, |
22 | | same or substantially similar vintage (new or existing), |
23 | | the same or substantially similar quantity, and the same or |
24 | | substantially similar contract length and structure. |
25 | | Benchmarks shall be developed by the procurement |
26 | | administrator, in consultation with the Commission staff, |
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1 | | Agency staff, and the procurement monitor and shall be |
2 | | subject to Commission review and approval. If price |
3 | | benchmarks for like products in the region are not |
4 | | available, the procurement administrator shall establish |
5 | | price benchmarks based on publicly available data on |
6 | | regional technology costs and expected current and future |
7 | | regional energy prices. The benchmarks in this Section |
8 | | shall not be used to curtail or otherwise reduce |
9 | | contractual obligations entered into by or through the |
10 | | Agency prior to the effective date of this amendatory Act |
11 | | of the 99th General Assembly. |
12 | | (E) For purposes of this subsection (c), the required |
13 | | procurement of cost-effective renewable energy resources |
14 | | for a particular year commencing prior to June 1, 2017 |
15 | | shall be measured as a percentage of the actual amount of |
16 | | electricity (megawatt-hours) supplied by the electric |
17 | | utility to eligible retail customers in the delivery year |
18 | | ending immediately prior to the procurement, and, for |
19 | | delivery years commencing on and after June 1, 2017, the |
20 | | required procurement of cost-effective renewable energy |
21 | | resources for a particular year shall be measured as a |
22 | | percentage of the actual amount of electricity |
23 | | (megawatt-hours) delivered by the electric utility in the |
24 | | delivery year ending immediately prior to the procurement, |
25 | | to all retail customers in its service territory. For |
26 | | purposes of this subsection (c), the amount paid per |
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1 | | kilowatthour means the total amount paid for electric |
2 | | service expressed on a per kilowatthour basis. For purposes |
3 | | of this subsection (c), the total amount paid for electric |
4 | | service includes without limitation amounts paid for |
5 | | supply, transmission, distribution, surcharges, and add-on |
6 | | taxes. |
7 | | Notwithstanding the requirements of this subsection |
8 | | (c), the total of renewable energy resources procured under |
9 | | the procurement plan for any single year shall be subject |
10 | | to the limitations of this subparagraph (E). Such |
11 | | procurement shall be reduced for all retail customers based |
12 | | on the amount necessary to limit the annual estimated |
13 | | average net increase due to the costs of these resources |
14 | | included in the amounts paid by eligible retail customers |
15 | | in connection with electric service to no more than the |
16 | | greater of 2.015% of the amount paid per kilowatthour by |
17 | | those customers during the year ending May 31, 2007 or the |
18 | | incremental amount per kilowatthour paid for these |
19 | | resources in 2011. To arrive at a maximum dollar amount of |
20 | | renewable energy resources to be procured for the |
21 | | particular delivery year, the resulting per kilowatthour |
22 | | amount shall be applied to the actual amount of |
23 | | kilowatthours of electricity delivered, or applicable |
24 | | portion of such amount as specified in paragraph (1) of |
25 | | this subsection (c), as applicable, by the electric utility |
26 | | in the delivery year immediately prior to the procurement |
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1 | | to all retail customers in its service territory. The |
2 | | calculations required by this subparagraph (E) shall be |
3 | | made only once for each delivery year at the time that the |
4 | | renewable energy resources are procured. Once the |
5 | | determination as to the amount of renewable energy |
6 | | resources to procure is made based on the calculations set |
7 | | forth in this subparagraph (E) and the contracts procuring |
8 | | those amounts are executed, no subsequent rate impact |
9 | | determinations shall be made and no adjustments to those |
10 | | contract amounts shall be allowed. All costs incurred under |
11 | | such contracts shall be fully recoverable by the electric |
12 | | utility as provided in this Section. |
13 | | (F) If the limitation on the amount of renewable energy |
14 | | resources procured in subparagraph (E) of this paragraph |
15 | | (1) prevents the Agency from meeting all of the goals in |
16 | | this subsection (c), the Agency's long-term plan shall |
17 | | prioritize compliance with the requirements of this |
18 | | subsection (c) regarding renewable energy credits in the |
19 | | following order: |
20 | | (i) renewable energy credits under existing |
21 | | contractual obligations; |
22 | | (i-5)funding for the Illinois Solar for All |
23 | | Program, as described in subparagraph (O) of this |
24 | | paragraph (1); |
25 | | (ii) renewable energy credits necessary to comply |
26 | | with the new wind and new photovoltaic procurement |
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1 | | requirements described in items (i) through (iii) of |
2 | | subparagraph (C) of this paragraph (1); and |
3 | | (iii) renewable energy credits necessary to meet |
4 | | the remaining requirements of this subsection (c). |
5 | | (G) The following provisions shall apply to the |
6 | | Agency's procurement of renewable energy credits under |
7 | | this subsection (c): |
8 | | (i) The Agency shall conduct an initial forward |
9 | | procurement for renewable energy credits from new |
10 | | utility-scale wind projects within 120 days after the |
11 | | effective date of this amendatory Act of the 99th |
12 | | General Assembly. For the purposes of this initial |
13 | | forward procurement, the Agency shall solicit 15-year |
14 | | contracts for delivery of 1,000,000 renewable energy |
15 | | credits delivered annually from new utility-scale wind |
16 | | projects to begin delivery on June 1, 2019, if |
17 | | available, but not later than June 1, 2021. Payments to |
18 | | suppliers of renewable energy credits shall commence |
19 | | upon delivery. Renewable energy credits procured under |
20 | | this initial procurement shall be included in the |
21 | | Agency's long-term plan and shall apply to all |
22 | | renewable energy goals in this subsection (c). |
23 | | (ii) The Agency shall conduct an initial forward |
24 | | procurement for renewable energy credits from new |
25 | | utility-scale solar projects and brownfield site |
26 | | photovoltaic projects within one year after the |
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1 | | effective date of this amendatory Act of the 99th |
2 | | General Assembly. For the purposes of this initial |
3 | | forward procurement, the Agency shall solicit 15-year |
4 | | contracts for delivery of 1,000,000 renewable energy |
5 | | credits delivered annually from new utility-scale |
6 | | solar projects and brownfield site photovoltaic |
7 | | projects to begin delivery on June 1, 2019, if |
8 | | available, but not later than June 1, 2021. The Agency |
9 | | may structure this initial procurement in one or more |
10 | | discrete procurement events. Payments to suppliers of |
11 | | renewable energy credits shall commence upon delivery. |
12 | | Renewable energy credits procured under this initial |
13 | | procurement shall be included in the Agency's |
14 | | long-term plan and shall apply to all renewable energy |
15 | | goals in this subsection (c). |
16 | | (iii) Subsequent forward procurements for |
17 | | utility-scale wind projects shall solicit at least |
18 | | 1,000,000 renewable energy credits delivered annually |
19 | | per procurement event and shall be planned, scheduled, |
20 | | and designed such that the cumulative amount of |
21 | | renewable energy credits delivered from all new wind |
22 | | projects in each delivery year shall not exceed the |
23 | | Agency's projection of the cumulative amount of |
24 | | renewable energy credits that will be delivered from |
25 | | all new photovoltaic projects, including utility-scale |
26 | | and distributed photovoltaic devices, in the same |
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1 | | delivery year at the time scheduled for wind contract |
2 | | delivery. |
3 | | (iv) If, at any time after the time set for |
4 | | delivery of renewable energy credits pursuant to the |
5 | | initial procurements in items (i) and (ii) of this |
6 | | subparagraph (G), the cumulative amount of renewable |
7 | | energy credits projected to be delivered from all new |
8 | | wind projects in a given delivery year exceeds the |
9 | | cumulative amount of renewable energy credits |
10 | | projected to be delivered from all new photovoltaic |
11 | | projects in that delivery year by 200,000 or more |
12 | | renewable energy credits, then the Agency shall within |
13 | | 60 days adjust the procurement programs in the |
14 | | long-term renewable resources procurement plan to |
15 | | ensure that the projected cumulative amount of |
16 | | renewable energy credits to be delivered from all new |
17 | | wind projects does not exceed the projected cumulative |
18 | | amount of renewable energy credits to be delivered from |
19 | | all new photovoltaic projects by 200,000 or more |
20 | | renewable energy credits, provided that nothing in |
21 | | this Section shall preclude the projected cumulative |
22 | | amount of renewable energy credits to be delivered from |
23 | | all new photovoltaic projects from exceeding the |
24 | | projected cumulative amount of renewable energy |
25 | | credits to be delivered from all new wind projects in |
26 | | each delivery year and provided further that nothing in |
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1 | | this item (iv) shall require the curtailment of an |
2 | | executed contract. The Agency shall update, on a |
3 | | quarterly basis, its projection of the renewable |
4 | | energy credits to be delivered from all projects in |
5 | | each delivery year. Notwithstanding anything to the |
6 | | contrary, the Agency may adjust the timing of |
7 | | procurement events conducted under this subparagraph |
8 | | (G). The long-term renewable resources procurement |
9 | | plan shall set forth the process by which the |
10 | | adjustments may be made. |
11 | | (v) All procurements under this subparagraph (G) |
12 | | shall comply with the geographic requirements in |
13 | | subparagraph (I) of this paragraph (1) and shall follow |
14 | | the procurement processes and procedures described in |
15 | | this Section and Section 16-111.5 of the Public |
16 | | Utilities Act to the extent practicable, and these |
17 | | processes and procedures may be expedited to |
18 | | accommodate the schedule established by this |
19 | | subparagraph (G). |
20 | | (H) The procurement of renewable energy resources for a |
21 | | given delivery year shall be reduced as described in this |
22 | | subparagraph (H) if an alternate retail electric supplier |
23 | | meets the requirements described in this subparagraph (H). |
24 | | (i) Within 45 days after the effective date of this |
25 | | amendatory Act of the 99th General Assembly, an |
26 | | alternative retail electric supplier or its successor |
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1 | | shall submit an informational filing to the Illinois |
2 | | Commerce Commission certifying that, as of December |
3 | | 31, 2015, the alternative retail electric supplier |
4 | | owned one or more electric generating facilities that |
5 | | generates renewable energy resources as defined in |
6 | | Section 1-10 of this Act, provided that such facilities |
7 | | are not powered by wind or photovoltaics, and the |
8 | | facilities generate one renewable energy credit for |
9 | | each megawatthour of energy produced from the |
10 | | facility. |
11 | | The informational filing shall identify each |
12 | | facility that was eligible to satisfy the alternative |
13 | | retail electric supplier's obligations under Section |
14 | | 16-115D of the Public Utilities Act as described in |
15 | | this item (i). |
16 | | (ii) For a given delivery year, the alternative |
17 | | retail electric supplier may elect to supply its retail |
18 | | customers with renewable energy credits from the |
19 | | facility or facilities described in item (i) of this |
20 | | subparagraph (H) that continue to be owned by the |
21 | | alternative retail electric supplier. |
22 | | (iii) The alternative retail electric supplier |
23 | | shall notify the Agency and the applicable utility, no |
24 | | later than February 28 of the year preceding the |
25 | | applicable delivery year or 15 days after the effective |
26 | | date of this amendatory Act of the 99th General |
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1 | | Assembly, whichever is later, of its election under |
2 | | item (ii) of this subparagraph (H) to supply renewable |
3 | | energy credits to retail customers of the utility. Such |
4 | | election shall identify the amount of renewable energy |
5 | | credits to be supplied by the alternative retail |
6 | | electric supplier to the utility's retail customers |
7 | | and the source of the renewable energy credits |
8 | | identified in the informational filing as described in |
9 | | item (i) of this subparagraph (H), subject to the |
10 | | following limitations: |
11 | | For the delivery year beginning June 1, 2018, |
12 | | the maximum amount of renewable energy credits to |
13 | | be supplied by an alternative retail electric |
14 | | supplier under this subparagraph (H) shall be 68% |
15 | | multiplied by 25% multiplied by 14.5% multiplied |
16 | | by the amount of metered electricity |
17 | | (megawatt-hours) delivered by the alternative |
18 | | retail electric supplier to Illinois retail |
19 | | customers during the delivery year ending May 31, |
20 | | 2016. |
21 | | For delivery years beginning June 1, 2019 and |
22 | | each year thereafter, the maximum amount of |
23 | | renewable energy credits to be supplied by an |
24 | | alternative retail electric supplier under this |
25 | | subparagraph (H) shall be 68% multiplied by 50% |
26 | | multiplied by 16% multiplied by the amount of |
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1 | | metered electricity (megawatt-hours) delivered by |
2 | | the alternative retail electric supplier to |
3 | | Illinois retail customers during the delivery year |
4 | | ending May 31, 2016, provided that the 16% value |
5 | | shall increase by 1.5% each delivery year |
6 | | thereafter to 25% by the delivery year beginning |
7 | | June 1, 2025, and thereafter the 25% value shall |
8 | | apply to each delivery year. |
9 | | For each delivery year, the total amount of |
10 | | renewable energy credits supplied by all alternative |
11 | | retail electric suppliers under this subparagraph (H) |
12 | | shall not exceed 9% of the Illinois target renewable |
13 | | energy credit quantity. The Illinois target renewable |
14 | | energy credit quantity for the delivery year beginning |
15 | | June 1, 2018 is 14.5% multiplied by the total amount of |
16 | | metered electricity (megawatt-hours) delivered in the |
17 | | delivery year immediately preceding that delivery |
18 | | year, provided that the 14.5% shall increase by 1.5% |
19 | | each delivery year thereafter to 25% by the delivery |
20 | | year beginning June 1, 2025, and thereafter the 25% |
21 | | value shall apply to each delivery year. |
22 | | If the requirements set forth in items (i) through |
23 | | (iii) of this subparagraph (H) are met, the charges |
24 | | that would otherwise be applicable to the retail |
25 | | customers of the alternative retail electric supplier |
26 | | under paragraph (6) of this subsection (c) for the |
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1 | | applicable delivery year shall be reduced by the ratio |
2 | | of the quantity of renewable energy credits supplied by |
3 | | the alternative retail electric supplier compared to |
4 | | that supplier's target renewable energy credit |
5 | | quantity. The supplier's target renewable energy |
6 | | credit quantity for the delivery year beginning June 1, |
7 | | 2018 is 14.5% multiplied by the total amount of metered |
8 | | electricity (megawatt-hours) delivered by the |
9 | | alternative retail supplier in that delivery year, |
10 | | provided that the 14.5% shall increase by 1.5% each |
11 | | delivery year thereafter to 25% by the delivery year |
12 | | beginning June 1, 2025, and thereafter the 25% value |
13 | | shall apply to each delivery year. |
14 | | On or before April 1 of each year, the Agency shall |
15 | | annually publish a report on its website that |
16 | | identifies the aggregate amount of renewable energy |
17 | | credits supplied by alternative retail electric |
18 | | suppliers under this subparagraph (H). |
19 | | (I) The Agency shall design its long-term renewable |
20 | | energy procurement plan to maximize the State's interest in |
21 | | the health, safety, and welfare of its residents, including |
22 | | but not limited to minimizing sulfur dioxide, nitrogen |
23 | | oxide, particulate matter and other pollution that |
24 | | adversely affects public health in this State, increasing |
25 | | fuel and resource diversity in this State, enhancing the |
26 | | reliability and resiliency of the electricity distribution |
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1 | | system in this State, meeting goals to limit carbon dioxide |
2 | | emissions under federal or State law, and contributing to a |
3 | | cleaner and healthier environment for the citizens of this |
4 | | State. In order to further these legislative purposes, |
5 | | renewable energy credits shall be eligible to be counted |
6 | | toward the renewable energy requirements of this |
7 | | subsection (c) if they are generated from facilities |
8 | | located in this State. The Agency may qualify renewable |
9 | | energy credits from facilities located in states adjacent |
10 | | to Illinois if the generator demonstrates and the Agency |
11 | | determines that the operation of such facility or |
12 | | facilities will help promote the State's interest in the |
13 | | health, safety, and welfare of its residents based on the |
14 | | public interest criteria described above. To ensure that |
15 | | the public interest criteria are applied to the procurement |
16 | | and given full effect, the Agency's long-term procurement |
17 | | plan shall describe in detail how each public interest |
18 | | factor shall be considered and weighted for facilities |
19 | | located in states adjacent to Illinois. |
20 | | (J) In order to promote the competitive development of |
21 | | renewable energy resources in furtherance of the State's |
22 | | interest in the health, safety, and welfare of its |
23 | | residents, renewable energy credits shall not be eligible |
24 | | to be counted toward the renewable energy requirements of |
25 | | this subsection (c) if they are sourced from a generating |
26 | | unit whose costs were being recovered through rates |
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1 | | regulated by this State or any other state or states on or |
2 | | after January 1, 2017. Each contract executed to purchase |
3 | | renewable energy credits under this subsection (c) shall |
4 | | provide for the contract's termination if the costs of the |
5 | | generating unit supplying the renewable energy credits |
6 | | subsequently begin to be recovered through rates regulated |
7 | | by this State or any other state or states; and each |
8 | | contract shall further provide that, in that event, the |
9 | | supplier of the credits must return 110% of all payments |
10 | | received under the contract. Amounts returned under the |
11 | | requirements of this subparagraph (J) shall be retained by |
12 | | the utility and all of these amounts shall be used for the |
13 | | procurement of additional renewable energy credits from |
14 | | new wind or new photovoltaic resources as defined in this |
15 | | subsection (c). The long-term plan shall provide that these |
16 | | renewable energy credits shall be procured in the next |
17 | | procurement event. |
18 | | Notwithstanding the limitations of this subparagraph |
19 | | (J), renewable energy credits sourced from generating |
20 | | units that are constructed, purchased, owned, or leased by |
21 | | an electric utility as part of an approved project, |
22 | | program, or pilot under either Section 1-56 of this Act or |
23 | | Section 16-108.9 of the Public Utilities Act shall be |
24 | | eligible to be counted toward the renewable energy |
25 | | requirements of this subsection (c), regardless of how the |
26 | | costs of these units are recovered. |
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1 | | (K) The long-term renewable resources procurement plan |
2 | | developed by the Agency in accordance with subparagraph (A) |
3 | | of this paragraph (1) shall include an Adjustable Block |
4 | | program for the procurement of renewable energy credits |
5 | | from new photovoltaic projects that are distributed |
6 | | renewable energy generation devices or new photovoltaic |
7 | | community renewable generation projects. The Adjustable |
8 | | Block program shall be designed to provide a transparent |
9 | | schedule of prices and quantities to enable the |
10 | | photovoltaic market to scale up and for renewable energy |
11 | | credit prices to adjust at a predictable rate over time. |
12 | | The prices set by the declining block program can be |
13 | | reflected as a set value or as the product of a formula. |
14 | | The Adjustable Block program shall include for each |
15 | | category of eligible projects: a schedule of standard block |
16 | | purchase prices to be offered; a series of steps, with |
17 | | associated nameplate capacity and purchase prices that |
18 | | adjust from step to step; and automatic opening of the next |
19 | | step as soon as the nameplate capacity and available |
20 | | purchase prices for an open step are fully committed or |
21 | | reserved. Only projects energized on or after June 1, 2017 |
22 | | shall be eligible for the Adjustable Block program. For |
23 | | each block group the Agency shall determine the number of |
24 | | blocks, the amount of generation capacity in each block, |
25 | | and the purchase price for each block, provided that the |
26 | | purchase price provided and the total amount of generation |
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1 | | in all blocks for all block groups shall be sufficient to |
2 | | meet the goals in this subsection (c). The Agency may |
3 | | periodically review its prior decisions establishing the |
4 | | number of blocks, the amount of generation capacity in each |
5 | | block, and the purchase price for each block, and may |
6 | | propose, on an expedited basis, changes to these previously |
7 | | set values, including but not limited to redistributing |
8 | | these amounts and the available funds as necessary and |
9 | | appropriate, subject to Commission approval as part of the |
10 | | periodic plan revision process described in Section |
11 | | 16-111.5 of the Public Utilities Act. The Agency may define |
12 | | different block sizes, purchase prices, or other distinct |
13 | | terms and conditions for projects located in different |
14 | | utility service territories if the Agency deems it |
15 | | necessary to meet the goals in this subsection (c). |
16 | | The Adjustable Block program shall include at least the |
17 | | following block groups in at least the following amounts, |
18 | | which may be adjusted upon review by the Agency and |
19 | | approval by the Commission as described in this |
20 | | subparagraph (K): |
21 | | (i) At least 25% from distributed renewable energy |
22 | | generation devices with a nameplate capacity of no more |
23 | | than 10 kilowatts. |
24 | | (ii) At least 25% from distributed renewable |
25 | | energy generation devices with a nameplate capacity of |
26 | | more than 10 kilowatts and no more than 2,000 |
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1 | | kilowatts. The Agency may create sub-categories within |
2 | | this category to account for the differences between |
3 | | projects for small commercial customers, large |
4 | | commercial customers, and public or non-profit |
5 | | customers. |
6 | | (iii) At least 25% from photovoltaic community |
7 | | renewable generation projects. |
8 | | (iv) The remaining 25% shall be allocated as |
9 | | specified by the Agency in the long-term renewable |
10 | | resources procurement plan. |
11 | | The Adjustable Block program shall be designed to |
12 | | ensure that renewable energy credits are procured from |
13 | | photovoltaic distributed renewable energy generation |
14 | | devices and new photovoltaic community renewable energy |
15 | | generation projects in diverse locations and are not |
16 | | concentrated in a few geographic areas. |
17 | | (L) The procurement of photovoltaic renewable energy |
18 | | credits under items (i) through (iv) of subparagraph (K) of |
19 | | this paragraph (1) shall be subject to the following |
20 | | contract and payment terms: |
21 | | (i) The Agency shall procure contracts of at least |
22 | | 15 years in length. |
23 | | (ii) For those renewable energy credits that |
24 | | qualify and are procured under item (i) of subparagraph |
25 | | (K) of this paragraph (1), the renewable energy credit |
26 | | purchase price shall be paid in full by the contracting |
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1 | | utilities at the time that the facility producing the |
2 | | renewable energy credits is interconnected at the |
3 | | distribution system level of the utility and |
4 | | energized. The electric utility shall receive and |
5 | | retire all renewable energy credits generated by the |
6 | | project for the first 15 years of operation. |
7 | | (iii) For those renewable energy credits that |
8 | | qualify and are procured under item (ii) and (iii) of |
9 | | subparagraph (K) of this paragraph (1) and any |
10 | | additional categories of distributed generation |
11 | | included in the long-term renewable resources |
12 | | procurement plan and approved by the Commission, 20 |
13 | | percent of the renewable energy credit purchase price |
14 | | shall be paid by the contracting utilities at the time |
15 | | that the facility producing the renewable energy |
16 | | credits is interconnected at the distribution system |
17 | | level of the utility and energized. The remaining |
18 | | portion shall be paid ratably over the subsequent |
19 | | 4-year period. The electric utility shall receive and |
20 | | retire all renewable energy credits generated by the |
21 | | project for the first 15 years of operation. |
22 | | (iv) Each contract shall include provisions to |
23 | | ensure the delivery of the renewable energy credits for |
24 | | the full term of the contract. |
25 | | (v) The utility shall be the counterparty to the |
26 | | contracts executed under this subparagraph (L) that |
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1 | | are approved by the Commission under the process |
2 | | described in Section 16-111.5 of the Public Utilities |
3 | | Act. No contract shall be executed for an amount that |
4 | | is less than one renewable energy credit per year. |
5 | | (vi) If, at any time, approved applications for the |
6 | | Adjustable Block program exceed funds collected by the |
7 | | electric utility or would cause the Agency to exceed |
8 | | the limitation described in subparagraph (E) of this |
9 | | paragraph (1) on the amount of renewable energy |
10 | | resources that may be procured, then the Agency shall |
11 | | consider future uncommitted funds to be reserved for |
12 | | these contracts on a first-come, first-served basis, |
13 | | with the delivery of renewable energy credits required |
14 | | beginning at the time that the reserved funds become |
15 | | available. |
16 | | (vii) Nothing in this Section shall require the |
17 | | utility to advance any payment or pay any amounts that |
18 | | exceed the actual amount of revenues collected by the |
19 | | utility under paragraph (6) of this subsection (c) and |
20 | | subsection (k) of Section 16-108 of the Public |
21 | | Utilities Act, and contracts executed under this |
22 | | Section shall expressly incorporate this limitation. |
23 | | (M) The Agency shall be authorized to retain one or |
24 | | more experts or expert consulting firms to develop, |
25 | | administer, implement, operate, and evaluate the |
26 | | Adjustable Block program described in subparagraph (K) of |
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1 | | this paragraph (1), and the Agency shall retain the |
2 | | consultant or consultants in the same manner, to the extent |
3 | | practicable, as the Agency retains others to administer |
4 | | provisions of this Act, including, but not limited to, the |
5 | | procurement administrator. The selection of experts and |
6 | | expert consulting firms and the procurement process |
7 | | described in this subparagraph (M) are exempt from the |
8 | | requirements of Section 20-10 of the Illinois Procurement |
9 | | Code, under Section 20-10 of that Code. The Agency shall |
10 | | strive to minimize administrative expenses in the |
11 | | implementation of the Adjustable Block program. |
12 | | The Agency and its consultant or consultants shall |
13 | | monitor block activity, share program activity with |
14 | | stakeholders and conduct regularly scheduled meetings to |
15 | | discuss program activity and market conditions. If |
16 | | necessary, the Agency may make prospective administrative |
17 | | adjustments to the Adjustable Block program design, such as |
18 | | redistributing available funds or making adjustments to |
19 | | purchase prices as necessary to achieve the goals of this |
20 | | subsection (c). Program modifications to any price, |
21 | | capacity block, or other program element that do not |
22 | | deviate from the Commission's approved value by more than |
23 | | 25% shall take effect immediately and are not subject to |
24 | | Commission review and approval. Program modifications to |
25 | | any price, capacity block, or other program element that |
26 | | deviate more than 25% from the Commission's approved value |
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1 | | must be approved by the Commission as a long-term plan |
2 | | amendment under Section 16-111.5 of the Public Utilities |
3 | | Act. The Agency shall consider stakeholder feedback when |
4 | | making adjustments to the Adjustable Block design and shall |
5 | | notify stakeholders in advance of any planned changes. |
6 | | (N) The long-term renewable resources procurement plan |
7 | | required by this subsection (c) shall include a community |
8 | | renewable generation program. The Agency shall establish |
9 | | the terms, conditions, and program requirements for |
10 | | community renewable generation projects with a goal to |
11 | | expand renewable energy generating facility access to a |
12 | | broader group of energy consumers, including residential |
13 | | and small commercial customers and those who cannot install |
14 | | renewable energy on their own properties. Any plan approved |
15 | | by the Commission shall allow subscriptions to community |
16 | | renewable generation projects to be portable and |
17 | | transferable. For purposes of this subparagraph (N), |
18 | | "portable" means that subscriptions may be retained by the |
19 | | subscriber even if the subscriber relocates or changes its |
20 | | address within the same utility service territory; and |
21 | | "transferable" means that a subscriber may assign or sell |
22 | | subscriptions to another person within the same utility |
23 | | service territory. |
24 | | Electric utilities shall provide a monetary credit to a |
25 | | subscriber's subsequent bill for service for the |
26 | | proportional output of a community renewable generation |
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1 | | project attributable to that subscriber as specified in |
2 | | Section 16-107.5 of the Public Utilities Act. |
3 | | The Agency shall purchase renewable energy credits |
4 | | from subscribed shares of photovoltaic community renewable |
5 | | generation projects through the Adjustable Block program |
6 | | described in subparagraph (K) of this paragraph (1) or |
7 | | through the Illinois Solar for All Program described in |
8 | | Section 1-56 of this Act. The electric utility shall |
9 | | purchase any unsubscribed energy from community renewable |
10 | | generation projects that are Qualifying Facilities ("QF") |
11 | | under the electric utility's tariff for purchasing the |
12 | | output from QFs under Public Utilities Regulatory Policies |
13 | | Act of 1978. |
14 | | The owners of and any subscribers to a community |
15 | | renewable generation project shall not be considered |
16 | | public utilities or alternative retail electricity |
17 | | suppliers under the Public Utilities Act solely as a result |
18 | | of their interest in or subscription to a community |
19 | | renewable generation project and shall not be required to |
20 | | become an alternative retail electric supplier by |
21 | | participating in a community renewable generation project |
22 | | with a public utility. |
23 | | (O) For the delivery year beginning June 1, 2018, the |
24 | | long-term renewable resources procurement plan required by |
25 | | this subsection (c) shall provide for the Agency to procure |
26 | | contracts to continue offering the Illinois Solar for All |
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1 | | Program described in subsection (b) of Section 1-56 of this |
2 | | Act, and the contracts approved by the Commission shall be |
3 | | executed by the utilities that are subject to this |
4 | | subsection (c). The long-term renewable resources |
5 | | procurement plan shall allocate 5% of the funds available |
6 | | under the plan for the applicable delivery year, or |
7 | | $10,000,000 per delivery year, whichever is greater, to |
8 | | fund the programs, and the plan shall determine the amount |
9 | | of funding to be apportioned to the programs identified in |
10 | | subsection (b) of Section 1-56 of this Act. In making the |
11 | | determinations required under this subparagraph (O), the |
12 | | Commission shall consider the experience and performance |
13 | | under the programs and any evaluation reports. The |
14 | | Commission shall also provide for an independent |
15 | | evaluation of those programs on a periodic basis that are |
16 | | funded under this subparagraph (O). The procurement plans |
17 | | shall include cost-effective renewable energy resources. A |
18 | | minimum percentage of each utility's total supply to serve |
19 | | the load of eligible retail customers, as defined in |
20 | | Section 16-111.5(a) of the Public Utilities Act, procured |
21 | | for each of the following years shall be generated from |
22 | | cost-effective renewable energy resources: at least 2% by |
23 | | June 1, 2008; at least 4% by June 1, 2009; at least 5% by |
24 | | June 1, 2010; at least 6% by June 1, 2011; at least 7% by |
25 | | June 1, 2012; at least 8% by June 1, 2013; at least 9% by |
26 | | June 1, 2014; at least 10% by June 1, 2015; and increasing |
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1 | | by at least 1.5% each year thereafter to at least 25% by |
2 | | June 1, 2025. To the extent that it is available, at least |
3 | | 75% of the renewable energy resources used to meet these |
4 | | standards shall come from wind generation and, beginning on |
5 | | June 1, 2011, at least the following percentages of the |
6 | | renewable energy resources used to meet these standards |
7 | | shall come from photovoltaics on the following schedule: |
8 | | 0.5% by June 1, 2012, 1.5% by June 1, 2013; 3% by June 1, |
9 | | 2014; and 6% by June 1, 2015 and thereafter. Of the |
10 | | renewable energy resources procured pursuant to this |
11 | | Section, at least the following percentages shall come from |
12 | | distributed renewable energy generation devices: 0.5% by |
13 | | June 1, 2013, 0.75% by June 1, 2014, and 1% by June 1, 2015 |
14 | | and thereafter. To the extent available, half of the |
15 | | renewable energy resources procured from distributed |
16 | | renewable energy generation shall come from devices of less |
17 | | than 25 kilowatts in nameplate capacity. Renewable energy |
18 | | resources procured from distributed generation devices may |
19 | | also count towards the required percentages for wind and |
20 | | solar photovoltaics. Procurement of renewable energy |
21 | | resources from distributed renewable energy generation |
22 | | devices shall be done on an annual basis through multi-year |
23 | | contracts of no less than 5 years, and shall consist solely |
24 | | of renewable energy credits. |
25 | | The Agency shall create credit requirements for |
26 | | suppliers of distributed renewable energy. In order to |
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1 | | minimize the administrative burden on contracting |
2 | | entities, the Agency shall solicit the use of third-party |
3 | | organizations to aggregate distributed renewable energy |
4 | | into groups of no less than one megawatt in installed |
5 | | capacity. These third-party organizations shall administer |
6 | | contracts with individual distributed renewable energy |
7 | | generation device owners. An individual distributed |
8 | | renewable energy generation device owner shall have the |
9 | | ability to measure the output of his or her distributed |
10 | | renewable energy generation device. |
11 | | For purposes of this subsection (c), "cost-effective" |
12 | | means that the costs of procuring renewable energy |
13 | | resources do not cause the limit stated in paragraph (2) of |
14 | | this subsection (c) to be exceeded and do not exceed |
15 | | benchmarks based on market prices for renewable energy |
16 | | resources in the region, which shall be developed by the |
17 | | procurement administrator, in consultation with the |
18 | | Commission staff, Agency staff, and the procurement |
19 | | monitor and shall be subject to Commission review and |
20 | | approval. |
21 | | (2) (Blank). For purposes of this subsection (c), the |
22 | | required procurement of cost-effective renewable energy |
23 | | resources for a particular year shall be measured as a |
24 | | percentage of the actual amount of electricity |
25 | | (megawatt-hours) supplied by the electric utility to |
26 | | eligible retail customers in the planning year ending |
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1 | | immediately prior to the procurement. For purposes of this |
2 | | subsection (c), the amount paid per kilowatthour means the |
3 | | total amount paid for electric service expressed on a per |
4 | | kilowatthour basis. For purposes of this subsection (c), |
5 | | the total amount paid for electric service includes without |
6 | | limitation amounts paid for supply, transmission, |
7 | | distribution, surcharges, and add-on taxes. |
8 | | Notwithstanding the requirements of this subsection |
9 | | (c), the total of renewable energy resources procured |
10 | | pursuant to the procurement plan for any single year shall |
11 | | be reduced by an amount necessary to limit the annual |
12 | | estimated average net increase due to the costs of these |
13 | | resources included in the amounts paid by eligible retail |
14 | | customers in connection with electric service to: |
15 | | (A) in 2008, no more than 0.5% of the amount paid |
16 | | per kilowatthour by those customers during the year |
17 | | ending May 31, 2007; |
18 | | (B) in 2009, the greater of an additional 0.5% of |
19 | | the amount paid per kilowatthour by those customers |
20 | | during the year ending May 31, 2008 or 1% of the amount |
21 | | paid per kilowatthour by those customers during the |
22 | | year ending May 31, 2007; |
23 | | (C) in 2010, the greater of an additional 0.5% of |
24 | | the amount paid per kilowatthour by those customers |
25 | | during the year ending May 31, 2009 or 1.5% of the |
26 | | amount paid per kilowatthour by those customers during |
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1 | | the year ending May 31, 2007; |
2 | | (D) in 2011, the greater of an additional 0.5% of |
3 | | the amount paid per kilowatthour by those customers |
4 | | during the year ending May 31, 2010 or 2% of the amount |
5 | | paid per kilowatthour by those customers during the |
6 | | year ending May 31, 2007; and |
7 | | (E) thereafter, the amount of renewable energy |
8 | | resources procured pursuant to the procurement plan |
9 | | for any single year shall be reduced by an amount |
10 | | necessary to limit the estimated average net increase |
11 | | due to the cost of these resources included in the |
12 | | amounts paid by eligible retail customers in |
13 | | connection with electric service to no more than the |
14 | | greater of 2.015% of the amount paid per kilowatthour |
15 | | by those customers during the year ending May 31, 2007 |
16 | | or the incremental amount per kilowatthour paid for |
17 | | these resources in 2011. |
18 | | No later than June 30, 2011, the Commission shall |
19 | | review the limitation on the amount of renewable energy |
20 | | resources procured pursuant to this subsection (c) and |
21 | | report to the General Assembly its findings as to |
22 | | whether that limitation unduly constrains the |
23 | | procurement of cost-effective renewable energy |
24 | | resources. |
25 | | (3) (Blank). Through June 1, 2011, renewable energy |
26 | | resources shall be counted for the purpose of meeting the |
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1 | | renewable energy standards set forth in paragraph (1) of |
2 | | this subsection (c) only if they are generated from |
3 | | facilities located in the State, provided that |
4 | | cost-effective renewable energy resources are available |
5 | | from those facilities. If those cost-effective resources |
6 | | are not available in Illinois, they shall be procured in |
7 | | states that adjoin Illinois and may be counted towards |
8 | | compliance. If those cost-effective resources are not |
9 | | available in Illinois or in states that adjoin Illinois, |
10 | | they shall be purchased elsewhere and shall be counted |
11 | | towards compliance. After June 1, 2011, cost-effective |
12 | | renewable energy resources located in Illinois and in |
13 | | states that adjoin Illinois may be counted towards |
14 | | compliance with the standards set forth in paragraph (1) of |
15 | | this subsection (c). If those cost-effective resources are |
16 | | not available in Illinois or in states that adjoin |
17 | | Illinois, they shall be purchased elsewhere and shall be |
18 | | counted towards compliance. |
19 | | (4) The electric utility shall retire all renewable |
20 | | energy credits used to comply with the standard. |
21 | | (5) Beginning with the 2010 delivery year and ending |
22 | | June 1, 2017 year commencing June 1, 2010 , an electric |
23 | | utility subject to this subsection (c) shall apply the |
24 | | lesser of the maximum alternative compliance payment rate |
25 | | or the most recent estimated alternative compliance |
26 | | payment rate for its service territory for the |
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1 | | corresponding compliance period, established pursuant to |
2 | | subsection (d) of Section 16-115D of the Public Utilities |
3 | | Act to its retail customers that take service pursuant to |
4 | | the electric utility's hourly pricing tariff or tariffs. |
5 | | The electric utility shall retain all amounts collected as |
6 | | a result of the application of the alternative compliance |
7 | | payment rate or rates to such customers, and, beginning in |
8 | | 2011, the utility shall include in the information provided |
9 | | under item (1) of subsection (d) of Section 16-111.5 of the |
10 | | Public Utilities Act the amounts collected under the |
11 | | alternative compliance payment rate or rates for the prior |
12 | | year ending May 31. Notwithstanding any limitation on the |
13 | | procurement of renewable energy resources imposed by item |
14 | | (2) of this subsection (c), the Agency shall increase its |
15 | | spending on the purchase of renewable energy resources to |
16 | | be procured by the electric utility for the next plan year |
17 | | by an amount equal to the amounts collected by the utility |
18 | | under the alternative compliance payment rate or rates in |
19 | | the prior year ending May 31. |
20 | | (6) The electric utility shall be entitled to recover |
21 | | all of its costs associated with the procurement of |
22 | | renewable energy credits under plans approved under this |
23 | | Section and Section 16-111.5 of the Public Utilities Act. |
24 | | These costs shall include associated reasonable expenses |
25 | | for implementing the procurement programs, including, but |
26 | | not limited to, the costs of administering and evaluating |
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1 | | the Adjustable Block program, through an automatic |
2 | | adjustment clause tariff in accordance with subsection (k) |
3 | | of Section 16-108 of the Public Utilities Act. |
4 | | (7) Renewable energy credits procured from new |
5 | | photovoltaic projects or new distributed renewable energy |
6 | | generation devices under this Section after the effective |
7 | | date of this amendatory Act of the 99th General Assembly |
8 | | must be procured from devices installed by a qualified |
9 | | person in compliance with the requirements of Section |
10 | | 16-128A of the Public Utilities Act and any rules or |
11 | | regulations adopted thereunder. |
12 | | In meeting the renewable energy requirements of this |
13 | | subsection (c), to the extent feasible and consistent with |
14 | | State and federal law, the renewable energy credit |
15 | | procurements, Adjustable Block solar program, and |
16 | | community renewable generation program shall provide |
17 | | employment opportunities for all segments of the |
18 | | population and workforce, including minority-owned and |
19 | | female-owned business enterprises, and shall not, |
20 | | consistent with State and federal law, discriminate based |
21 | | on race or socioeconomic status. |
22 | | (d) Clean coal portfolio standard. |
23 | | (1) The procurement plans shall include electricity |
24 | | generated using clean coal. Each utility shall enter into |
25 | | one or more sourcing agreements with the initial clean coal |
26 | | facility, as provided in paragraph (3) of this subsection |
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1 | | (d), covering electricity generated by the initial clean |
2 | | coal facility representing at least 5% of each utility's |
3 | | total supply to serve the load of eligible retail customers |
4 | | in 2015 and each year thereafter, as described in paragraph |
5 | | (3) of this subsection (d), subject to the limits specified |
6 | | in paragraph (2) of this subsection (d). It is the goal of |
7 | | the State that by January 1, 2025, 25% of the electricity |
8 | | used in the State shall be generated by cost-effective |
9 | | clean coal facilities. For purposes of this subsection (d), |
10 | | "cost-effective" means that the expenditures pursuant to |
11 | | such sourcing agreements do not cause the limit stated in |
12 | | paragraph (2) of this subsection (d) to be exceeded and do |
13 | | not exceed cost-based benchmarks, which shall be developed |
14 | | to assess all expenditures pursuant to such sourcing |
15 | | agreements covering electricity generated by clean coal |
16 | | facilities, other than the initial clean coal facility, by |
17 | | the procurement administrator, in consultation with the |
18 | | Commission staff, Agency staff, and the procurement |
19 | | monitor and shall be subject to Commission review and |
20 | | approval. |
21 | | A utility party to a sourcing agreement shall |
22 | | immediately retire any emission credits that it receives in |
23 | | connection with the electricity covered by such agreement. |
24 | | Utilities shall maintain adequate records documenting |
25 | | the purchases under the sourcing agreement to comply with |
26 | | this subsection (d) and shall file an accounting with the |
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1 | | load forecast that must be filed with the Agency by July 15 |
2 | | of each year, in accordance with subsection (d) of Section |
3 | | 16-111.5 of the Public Utilities Act. |
4 | | A utility shall be deemed to have complied with the |
5 | | clean coal portfolio standard specified in this subsection |
6 | | (d) if the utility enters into a sourcing agreement as |
7 | | required by this subsection (d). |
8 | | (2) For purposes of this subsection (d), the required |
9 | | execution of sourcing agreements with the initial clean |
10 | | coal facility for a particular year shall be measured as a |
11 | | percentage of the actual amount of electricity |
12 | | (megawatt-hours) supplied by the electric utility to |
13 | | eligible retail customers in the planning year ending |
14 | | immediately prior to the agreement's execution. For |
15 | | purposes of this subsection (d), the amount paid per |
16 | | kilowatthour means the total amount paid for electric |
17 | | service expressed on a per kilowatthour basis. For purposes |
18 | | of this subsection (d), the total amount paid for electric |
19 | | service includes without limitation amounts paid for |
20 | | supply, transmission, distribution, surcharges and add-on |
21 | | taxes. |
22 | | Notwithstanding the requirements of this subsection |
23 | | (d), the total amount paid under sourcing agreements with |
24 | | clean coal facilities pursuant to the procurement plan for |
25 | | any given year shall be reduced by an amount necessary to |
26 | | limit the annual estimated average net increase due to the |
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1 | | costs of these resources included in the amounts paid by |
2 | | eligible retail customers in connection with electric |
3 | | service to: |
4 | | (A) in 2010, no more than 0.5% of the amount paid |
5 | | per kilowatthour by those customers during the year |
6 | | ending May 31, 2009; |
7 | | (B) in 2011, the greater of an additional 0.5% of |
8 | | the amount paid per kilowatthour by those customers |
9 | | during the year ending May 31, 2010 or 1% of the amount |
10 | | paid per kilowatthour by those customers during the |
11 | | year ending May 31, 2009; |
12 | | (C) in 2012, the greater of an additional 0.5% of |
13 | | the amount paid per kilowatthour by those customers |
14 | | during the year ending May 31, 2011 or 1.5% of the |
15 | | amount paid per kilowatthour by those customers during |
16 | | the year ending May 31, 2009; |
17 | | (D) in 2013, the greater of an additional 0.5% of |
18 | | the amount paid per kilowatthour by those customers |
19 | | during the year ending May 31, 2012 or 2% of the amount |
20 | | paid per kilowatthour by those customers during the |
21 | | year ending May 31, 2009; and |
22 | | (E) thereafter, the total amount paid under |
23 | | sourcing agreements with clean coal facilities |
24 | | pursuant to the procurement plan for any single year |
25 | | shall be reduced by an amount necessary to limit the |
26 | | estimated average net increase due to the cost of these |
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1 | | resources included in the amounts paid by eligible |
2 | | retail customers in connection with electric service |
3 | | to no more than the greater of (i) 2.015% of the amount |
4 | | paid per kilowatthour by those customers during the |
5 | | year ending May 31, 2009 or (ii) the incremental amount |
6 | | per kilowatthour paid for these resources in 2013. |
7 | | These requirements may be altered only as provided by |
8 | | statute. |
9 | | No later than June 30, 2015, the Commission shall |
10 | | review the limitation on the total amount paid under |
11 | | sourcing agreements, if any, with clean coal facilities |
12 | | pursuant to this subsection (d) and report to the General |
13 | | Assembly its findings as to whether that limitation unduly |
14 | | constrains the amount of electricity generated by |
15 | | cost-effective clean coal facilities that is covered by |
16 | | sourcing agreements. |
17 | | (3) Initial clean coal facility. In order to promote |
18 | | development of clean coal facilities in Illinois, each |
19 | | electric utility subject to this Section shall execute a |
20 | | sourcing agreement to source electricity from a proposed |
21 | | clean coal facility in Illinois (the "initial clean coal |
22 | | facility") that will have a nameplate capacity of at least |
23 | | 500 MW when commercial operation commences, that has a |
24 | | final Clean Air Act permit on the effective date of this |
25 | | amendatory Act of the 95th General Assembly, and that will |
26 | | meet the definition of clean coal facility in Section 1-10 |
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1 | | of this Act when commercial operation commences. The |
2 | | sourcing agreements with this initial clean coal facility |
3 | | shall be subject to both approval of the initial clean coal |
4 | | facility by the General Assembly and satisfaction of the |
5 | | requirements of paragraph (4) of this subsection (d) and |
6 | | shall be executed within 90 days after any such approval by |
7 | | the General Assembly. The Agency and the Commission shall |
8 | | have authority to inspect all books and records associated |
9 | | with the initial clean coal facility during the term of |
10 | | such a sourcing agreement. A utility's sourcing agreement |
11 | | for electricity produced by the initial clean coal facility |
12 | | shall include: |
13 | | (A) a formula contractual price (the "contract |
14 | | price") approved pursuant to paragraph (4) of this |
15 | | subsection (d), which shall: |
16 | | (i) be determined using a cost of service |
17 | | methodology employing either a level or deferred |
18 | | capital recovery component, based on a capital |
19 | | structure consisting of 45% equity and 55% debt, |
20 | | and a return on equity as may be approved by the |
21 | | Federal Energy Regulatory Commission, which in any |
22 | | case may not exceed the lower of 11.5% or the rate |
23 | | of return approved by the General Assembly |
24 | | pursuant to paragraph (4) of this subsection (d); |
25 | | and |
26 | | (ii) provide that all miscellaneous net |
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1 | | revenue, including but not limited to net revenue |
2 | | from the sale of emission allowances, if any, |
3 | | substitute natural gas, if any, grants or other |
4 | | support provided by the State of Illinois or the |
5 | | United States Government, firm transmission |
6 | | rights, if any, by-products produced by the |
7 | | facility, energy or capacity derived from the |
8 | | facility and not covered by a sourcing agreement |
9 | | pursuant to paragraph (3) of this subsection (d) or |
10 | | item (5) of subsection (d) of Section 16-115 of the |
11 | | Public Utilities Act, whether generated from the |
12 | | synthesis gas derived from coal, from SNG, or from |
13 | | natural gas, shall be credited against the revenue |
14 | | requirement for this initial clean coal facility; |
15 | | (B) power purchase provisions, which shall: |
16 | | (i) provide that the utility party to such |
17 | | sourcing agreement shall pay the contract price |
18 | | for electricity delivered under such sourcing |
19 | | agreement; |
20 | | (ii) require delivery of electricity to the |
21 | | regional transmission organization market of the |
22 | | utility that is party to such sourcing agreement; |
23 | | (iii) require the utility party to such |
24 | | sourcing agreement to buy from the initial clean |
25 | | coal facility in each hour an amount of energy |
26 | | equal to all clean coal energy made available from |
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1 | | the initial clean coal facility during such hour |
2 | | times a fraction, the numerator of which is such |
3 | | utility's retail market sales of electricity |
4 | | (expressed in kilowatthours sold) in the State |
5 | | during the prior calendar month and the |
6 | | denominator of which is the total retail market |
7 | | sales of electricity (expressed in kilowatthours |
8 | | sold) in the State by utilities during such prior |
9 | | month and the sales of electricity (expressed in |
10 | | kilowatthours sold) in the State by alternative |
11 | | retail electric suppliers during such prior month |
12 | | that are subject to the requirements of this |
13 | | subsection (d) and paragraph (5) of subsection (d) |
14 | | of Section 16-115 of the Public Utilities Act, |
15 | | provided that the amount purchased by the utility |
16 | | in any year will be limited by paragraph (2) of |
17 | | this subsection (d); and |
18 | | (iv) be considered pre-existing contracts in |
19 | | such utility's procurement plans for eligible |
20 | | retail customers; |
21 | | (C) contract for differences provisions, which |
22 | | shall: |
23 | | (i) require the utility party to such sourcing |
24 | | agreement to contract with the initial clean coal |
25 | | facility in each hour with respect to an amount of |
26 | | energy equal to all clean coal energy made |
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1 | | available from the initial clean coal facility |
2 | | during such hour times a fraction, the numerator of |
3 | | which is such utility's retail market sales of |
4 | | electricity (expressed in kilowatthours sold) in |
5 | | the utility's service territory in the State |
6 | | during the prior calendar month and the |
7 | | denominator of which is the total retail market |
8 | | sales of electricity (expressed in kilowatthours |
9 | | sold) in the State by utilities during such prior |
10 | | month and the sales of electricity (expressed in |
11 | | kilowatthours sold) in the State by alternative |
12 | | retail electric suppliers during such prior month |
13 | | that are subject to the requirements of this |
14 | | subsection (d) and paragraph (5) of subsection (d) |
15 | | of Section 16-115 of the Public Utilities Act, |
16 | | provided that the amount paid by the utility in any |
17 | | year will be limited by paragraph (2) of this |
18 | | subsection (d); |
19 | | (ii) provide that the utility's payment |
20 | | obligation in respect of the quantity of |
21 | | electricity determined pursuant to the preceding |
22 | | clause (i) shall be limited to an amount equal to |
23 | | (1) the difference between the contract price |
24 | | determined pursuant to subparagraph (A) of |
25 | | paragraph (3) of this subsection (d) and the |
26 | | day-ahead price for electricity delivered to the |
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1 | | regional transmission organization market of the |
2 | | utility that is party to such sourcing agreement |
3 | | (or any successor delivery point at which such |
4 | | utility's supply obligations are financially |
5 | | settled on an hourly basis) (the "reference |
6 | | price") on the day preceding the day on which the |
7 | | electricity is delivered to the initial clean coal |
8 | | facility busbar, multiplied by (2) the quantity of |
9 | | electricity determined pursuant to the preceding |
10 | | clause (i); and |
11 | | (iii) not require the utility to take physical |
12 | | delivery of the electricity produced by the |
13 | | facility; |
14 | | (D) general provisions, which shall: |
15 | | (i) specify a term of no more than 30 years, |
16 | | commencing on the commercial operation date of the |
17 | | facility; |
18 | | (ii) provide that utilities shall maintain |
19 | | adequate records documenting purchases under the |
20 | | sourcing agreements entered into to comply with |
21 | | this subsection (d) and shall file an accounting |
22 | | with the load forecast that must be filed with the |
23 | | Agency by July 15 of each year, in accordance with |
24 | | subsection (d) of Section 16-111.5 of the Public |
25 | | Utilities Act; |
26 | | (iii) provide that all costs associated with |
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1 | | the initial clean coal facility will be |
2 | | periodically reported to the Federal Energy |
3 | | Regulatory Commission and to purchasers in |
4 | | accordance with applicable laws governing |
5 | | cost-based wholesale power contracts; |
6 | | (iv) permit the Illinois Power Agency to |
7 | | assume ownership of the initial clean coal |
8 | | facility, without monetary consideration and |
9 | | otherwise on reasonable terms acceptable to the |
10 | | Agency, if the Agency so requests no less than 3 |
11 | | years prior to the end of the stated contract term; |
12 | | (v) require the owner of the initial clean coal |
13 | | facility to provide documentation to the |
14 | | Commission each year, starting in the facility's |
15 | | first year of commercial operation, accurately |
16 | | reporting the quantity of carbon emissions from |
17 | | the facility that have been captured and |
18 | | sequestered and report any quantities of carbon |
19 | | released from the site or sites at which carbon |
20 | | emissions were sequestered in prior years, based |
21 | | on continuous monitoring of such sites. If, in any |
22 | | year after the first year of commercial operation, |
23 | | the owner of the facility fails to demonstrate that |
24 | | the initial clean coal facility captured and |
25 | | sequestered at least 50% of the total carbon |
26 | | emissions that the facility would otherwise emit |
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1 | | or that sequestration of emissions from prior |
2 | | years has failed, resulting in the release of |
3 | | carbon dioxide into the atmosphere, the owner of |
4 | | the facility must offset excess emissions. Any |
5 | | such carbon offsets must be permanent, additional, |
6 | | verifiable, real, located within the State of |
7 | | Illinois, and legally and practicably enforceable. |
8 | | The cost of such offsets for the facility that are |
9 | | not recoverable shall not exceed $15 million in any |
10 | | given year. No costs of any such purchases of |
11 | | carbon offsets may be recovered from a utility or |
12 | | its customers. All carbon offsets purchased for |
13 | | this purpose and any carbon emission credits |
14 | | associated with sequestration of carbon from the |
15 | | facility must be permanently retired. The initial |
16 | | clean coal facility shall not forfeit its |
17 | | designation as a clean coal facility if the |
18 | | facility fails to fully comply with the applicable |
19 | | carbon sequestration requirements in any given |
20 | | year, provided the requisite offsets are |
21 | | purchased. However, the Attorney General, on |
22 | | behalf of the People of the State of Illinois, may |
23 | | specifically enforce the facility's sequestration |
24 | | requirement and the other terms of this contract |
25 | | provision. Compliance with the sequestration |
26 | | requirements and offset purchase requirements |
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1 | | specified in paragraph (3) of this subsection (d) |
2 | | shall be reviewed annually by an independent |
3 | | expert retained by the owner of the initial clean |
4 | | coal facility, with the advance written approval |
5 | | of the Attorney General. The Commission may, in the |
6 | | course of the review specified in item (vii), |
7 | | reduce the allowable return on equity for the |
8 | | facility if the facility wilfully fails to comply |
9 | | with the carbon capture and sequestration |
10 | | requirements set forth in this item (v); |
11 | | (vi) include limits on, and accordingly |
12 | | provide for modification of, the amount the |
13 | | utility is required to source under the sourcing |
14 | | agreement consistent with paragraph (2) of this |
15 | | subsection (d); |
16 | | (vii) require Commission review: (1) to |
17 | | determine the justness, reasonableness, and |
18 | | prudence of the inputs to the formula referenced in |
19 | | subparagraphs (A)(i) through (A)(iii) of paragraph |
20 | | (3) of this subsection (d), prior to an adjustment |
21 | | in those inputs including, without limitation, the |
22 | | capital structure and return on equity, fuel |
23 | | costs, and other operations and maintenance costs |
24 | | and (2) to approve the costs to be passed through |
25 | | to customers under the sourcing agreement by which |
26 | | the utility satisfies its statutory obligations. |
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1 | | Commission review shall occur no less than every 3 |
2 | | years, regardless of whether any adjustments have |
3 | | been proposed, and shall be completed within 9 |
4 | | months; |
5 | | (viii) limit the utility's obligation to such |
6 | | amount as the utility is allowed to recover through |
7 | | tariffs filed with the Commission, provided that |
8 | | neither the clean coal facility nor the utility |
9 | | waives any right to assert federal pre-emption or |
10 | | any other argument in response to a purported |
11 | | disallowance of recovery costs; |
12 | | (ix) limit the utility's or alternative retail |
13 | | electric supplier's obligation to incur any |
14 | | liability until such time as the facility is in |
15 | | commercial operation and generating power and |
16 | | energy and such power and energy is being delivered |
17 | | to the facility busbar; |
18 | | (x) provide that the owner or owners of the |
19 | | initial clean coal facility, which is the |
20 | | counterparty to such sourcing agreement, shall |
21 | | have the right from time to time to elect whether |
22 | | the obligations of the utility party thereto shall |
23 | | be governed by the power purchase provisions or the |
24 | | contract for differences provisions; |
25 | | (xi) append documentation showing that the |
26 | | formula rate and contract, insofar as they relate |
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1 | | to the power purchase provisions, have been |
2 | | approved by the Federal Energy Regulatory |
3 | | Commission pursuant to Section 205 of the Federal |
4 | | Power Act; |
5 | | (xii) provide that any changes to the terms of |
6 | | the contract, insofar as such changes relate to the |
7 | | power purchase provisions, are subject to review |
8 | | under the public interest standard applied by the |
9 | | Federal Energy Regulatory Commission pursuant to |
10 | | Sections 205 and 206 of the Federal Power Act; and |
11 | | (xiii) conform with customary lender |
12 | | requirements in power purchase agreements used as |
13 | | the basis for financing non-utility generators. |
14 | | (4) Effective date of sourcing agreements with the |
15 | | initial clean coal facility. |
16 | | Any proposed sourcing agreement with the initial clean |
17 | | coal facility shall not become effective unless the |
18 | | following reports are prepared and submitted and |
19 | | authorizations and approvals obtained: |
20 | | (i) Facility cost report. The owner of the initial |
21 | | clean coal facility shall submit to the Commission, the |
22 | | Agency, and the General Assembly a front-end |
23 | | engineering and design study, a facility cost report, |
24 | | method of financing (including but not limited to |
25 | | structure and associated costs), and an operating and |
26 | | maintenance cost quote for the facility (collectively |
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1 | | "facility cost report"), which shall be prepared in |
2 | | accordance with the requirements of this paragraph (4) |
3 | | of subsection (d) of this Section, and shall provide |
4 | | the Commission and the Agency access to the work |
5 | | papers, relied upon documents, and any other backup |
6 | | documentation related to the facility cost report. |
7 | | (ii) Commission report. Within 6 months following |
8 | | receipt of the facility cost report, the Commission, in |
9 | | consultation with the Agency, shall submit a report to |
10 | | the General Assembly setting forth its analysis of the |
11 | | facility cost report. Such report shall include, but |
12 | | not be limited to, a comparison of the costs associated |
13 | | with electricity generated by the initial clean coal |
14 | | facility to the costs associated with electricity |
15 | | generated by other types of generation facilities, an |
16 | | analysis of the rate impacts on residential and small |
17 | | business customers over the life of the sourcing |
18 | | agreements, and an analysis of the likelihood that the |
19 | | initial clean coal facility will commence commercial |
20 | | operation by and be delivering power to the facility's |
21 | | busbar by 2016. To assist in the preparation of its |
22 | | report, the Commission, in consultation with the |
23 | | Agency, may hire one or more experts or consultants, |
24 | | the costs of which shall be paid for by the owner of |
25 | | the initial clean coal facility. The Commission and |
26 | | Agency may begin the process of selecting such experts |
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1 | | or consultants prior to receipt of the facility cost |
2 | | report. |
3 | | (iii) General Assembly approval. The proposed |
4 | | sourcing agreements shall not take effect unless, |
5 | | based on the facility cost report and the Commission's |
6 | | report, the General Assembly enacts authorizing |
7 | | legislation approving (A) the projected price, stated |
8 | | in cents per kilowatthour, to be charged for |
9 | | electricity generated by the initial clean coal |
10 | | facility, (B) the projected impact on residential and |
11 | | small business customers' bills over the life of the |
12 | | sourcing agreements, and (C) the maximum allowable |
13 | | return on equity for the project; and |
14 | | (iv) Commission review. If the General Assembly |
15 | | enacts authorizing legislation pursuant to |
16 | | subparagraph (iii) approving a sourcing agreement, the |
17 | | Commission shall, within 90 days of such enactment, |
18 | | complete a review of such sourcing agreement. During |
19 | | such time period, the Commission shall implement any |
20 | | directive of the General Assembly, resolve any |
21 | | disputes between the parties to the sourcing agreement |
22 | | concerning the terms of such agreement, approve the |
23 | | form of such agreement, and issue an order finding that |
24 | | the sourcing agreement is prudent and reasonable. |
25 | | The facility cost report shall be prepared as follows: |
26 | | (A) The facility cost report shall be prepared by |
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1 | | duly licensed engineering and construction firms |
2 | | detailing the estimated capital costs payable to one or |
3 | | more contractors or suppliers for the engineering, |
4 | | procurement and construction of the components |
5 | | comprising the initial clean coal facility and the |
6 | | estimated costs of operation and maintenance of the |
7 | | facility. The facility cost report shall include: |
8 | | (i) an estimate of the capital cost of the core |
9 | | plant based on one or more front end engineering |
10 | | and design studies for the gasification island and |
11 | | related facilities. The core plant shall include |
12 | | all civil, structural, mechanical, electrical, |
13 | | control, and safety systems. |
14 | | (ii) an estimate of the capital cost of the |
15 | | balance of the plant, including any capital costs |
16 | | associated with sequestration of carbon dioxide |
17 | | emissions and all interconnects and interfaces |
18 | | required to operate the facility, such as |
19 | | transmission of electricity, construction or |
20 | | backfeed power supply, pipelines to transport |
21 | | substitute natural gas or carbon dioxide, potable |
22 | | water supply, natural gas supply, water supply, |
23 | | water discharge, landfill, access roads, and coal |
24 | | delivery. |
25 | | The quoted construction costs shall be expressed |
26 | | in nominal dollars as of the date that the quote is |
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1 | | prepared and shall include capitalized financing costs |
2 | | during construction,
taxes, insurance, and other |
3 | | owner's costs, and an assumed escalation in materials |
4 | | and labor beyond the date as of which the construction |
5 | | cost quote is expressed. |
6 | | (B) The front end engineering and design study for |
7 | | the gasification island and the cost study for the |
8 | | balance of plant shall include sufficient design work |
9 | | to permit quantification of major categories of |
10 | | materials, commodities and labor hours, and receipt of |
11 | | quotes from vendors of major equipment required to |
12 | | construct and operate the clean coal facility. |
13 | | (C) The facility cost report shall also include an |
14 | | operating and maintenance cost quote that will provide |
15 | | the estimated cost of delivered fuel, personnel, |
16 | | maintenance contracts, chemicals, catalysts, |
17 | | consumables, spares, and other fixed and variable |
18 | | operations and maintenance costs. The delivered fuel |
19 | | cost estimate will be provided by a recognized third |
20 | | party expert or experts in the fuel and transportation |
21 | | industries. The balance of the operating and |
22 | | maintenance cost quote, excluding delivered fuel |
23 | | costs, will be developed based on the inputs provided |
24 | | by duly licensed engineering and construction firms |
25 | | performing the construction cost quote, potential |
26 | | vendors under long-term service agreements and plant |
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1 | | operating agreements, or recognized third party plant |
2 | | operator or operators. |
3 | | The operating and maintenance cost quote |
4 | | (including the cost of the front end engineering and |
5 | | design study) shall be expressed in nominal dollars as |
6 | | of the date that the quote is prepared and shall |
7 | | include taxes, insurance, and other owner's costs, and |
8 | | an assumed escalation in materials and labor beyond the |
9 | | date as of which the operating and maintenance cost |
10 | | quote is expressed. |
11 | | (D) The facility cost report shall also include an |
12 | | analysis of the initial clean coal facility's ability |
13 | | to deliver power and energy into the applicable |
14 | | regional transmission organization markets and an |
15 | | analysis of the expected capacity factor for the |
16 | | initial clean coal facility. |
17 | | (E) Amounts paid to third parties unrelated to the |
18 | | owner or owners of the initial clean coal facility to |
19 | | prepare the core plant construction cost quote, |
20 | | including the front end engineering and design study, |
21 | | and the operating and maintenance cost quote will be |
22 | | reimbursed through Coal Development Bonds. |
23 | | (5) Re-powering and retrofitting coal-fired power |
24 | | plants previously owned by Illinois utilities to qualify as |
25 | | clean coal facilities. During the 2009 procurement |
26 | | planning process and thereafter, the Agency and the |
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1 | | Commission shall consider sourcing agreements covering |
2 | | electricity generated by power plants that were previously |
3 | | owned by Illinois utilities and that have been or will be |
4 | | converted into clean coal facilities, as defined by Section |
5 | | 1-10 of this Act. Pursuant to such procurement planning |
6 | | process, the owners of such facilities may propose to the |
7 | | Agency sourcing agreements with utilities and alternative |
8 | | retail electric suppliers required to comply with |
9 | | subsection (d) of this Section and item (5) of subsection |
10 | | (d) of Section 16-115 of the Public Utilities Act, covering |
11 | | electricity generated by such facilities. In the case of |
12 | | sourcing agreements that are power purchase agreements, |
13 | | the contract price for electricity sales shall be |
14 | | established on a cost of service basis. In the case of |
15 | | sourcing agreements that are contracts for differences, |
16 | | the contract price from which the reference price is |
17 | | subtracted shall be established on a cost of service basis. |
18 | | The Agency and the Commission may approve any such utility |
19 | | sourcing agreements that do not exceed cost-based |
20 | | benchmarks developed by the procurement administrator, in |
21 | | consultation with the Commission staff, Agency staff and |
22 | | the procurement monitor, subject to Commission review and |
23 | | approval. The Commission shall have authority to inspect |
24 | | all books and records associated with these clean coal |
25 | | facilities during the term of any such contract. |
26 | | (6) Costs incurred under this subsection (d) or |
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1 | | pursuant to a contract entered into under this subsection |
2 | | (d) shall be deemed prudently incurred and reasonable in |
3 | | amount and the electric utility shall be entitled to full |
4 | | cost recovery pursuant to the tariffs filed with the |
5 | | Commission. |
6 | | (d-5) Zero emission standard. |
7 | | (1) Beginning with the delivery year commencing on June |
8 | | 1, 2017, the Agency shall, for electric utilities that |
9 | | serve at least 100,000 retail customers in this State, |
10 | | procure contracts with zero emission facilities that are |
11 | | reasonably capable of generating cost-effective zero |
12 | | emission credits in an amount approximately equal to 16% of |
13 | | the actual amount of electricity delivered by each electric |
14 | | utility to retail customers in the State during calendar |
15 | | year 2014. For an electric utility serving fewer than |
16 | | 100,000 retail customers in this State that requested, |
17 | | under Section 16-111.5 of the Public Utilities Act, that |
18 | | the Agency procure power and energy for all or a portion of |
19 | | the utility's Illinois load for the delivery year |
20 | | commencing June 1, 2016, the Agency shall procure contracts |
21 | | with zero emission facilities that are reasonably capable |
22 | | of generating cost-effective zero emission credits in an |
23 | | amount approximately equal to 16% of the portion of power |
24 | | and energy to be procured by the Agency for the utility. |
25 | | The duration of the contracts procured under this |
26 | | subsection (d-5) shall be for a term of 10 years. The |
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1 | | quantity of zero emission credits to be procured under the |
2 | | contracts shall be all of the zero emission credits |
3 | | generated by the zero emission facility in each delivery |
4 | | year; however, if the zero emission facility is owned by |
5 | | more than one entity, then the quantity of zero emission |
6 | | credits to be procured under the contracts shall be the |
7 | | amount of zero emission credits that are generated from the |
8 | | portion of the zero emission facility that is owned by the |
9 | | winning supplier. |
10 | | The 16% value identified in this paragraph (1) is the |
11 | | average of the percentage targets in subparagraph (B) of |
12 | | paragraph (1) of subsection (c) of Section 1-75 of this Act |
13 | | for the 5 delivery years beginning June 1, 2017. |
14 | | The procurement process shall be subject to the |
15 | | following provisions: |
16 | | (A) Those zero emission facilities that intend to |
17 | | participate in the procurement shall submit to the |
18 | | Agency the following eligibility information for each |
19 | | zero emission facility on or before the date |
20 | | established by the Agency: |
21 | | (i) the in-service date and remaining useful |
22 | | life of the zero emission facility; |
23 | | (ii) the amount of power generated annually |
24 | | for each of the years 2005 through 2015, and the |
25 | | projected zero emission credits to be generated |
26 | | over the remaining useful life of the zero emission |
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1 | | facility, which shall be used to determine the |
2 | | capability of each facility; |
3 | | (iii) the annual zero emission facility cost |
4 | | projections, expressed on a per megawatthour |
5 | | basis, over the next 6 delivery years, which shall |
6 | | include the following: operation and maintenance |
7 | | expenses; fully allocated overhead costs, which |
8 | | shall be allocated using the methodology developed |
9 | | by the Institute for Nuclear Power Operations; |
10 | | fuel expenditures; non-fuel capital expenditures; |
11 | | spent fuel expenditures; a return on working |
12 | | capital; the cost of operational and market risks |
13 | | that could be avoided by ceasing operation; and any |
14 | | other costs necessary for continued operations, |
15 | | provided that "necessary" means, for purposes of |
16 | | this item (iii), that the costs could reasonably be |
17 | | avoided only by ceasing operations of the zero |
18 | | emission facility; and |
19 | | (iv) a commitment to continue operating, for |
20 | | the duration of the contract or contracts executed |
21 | | under the procurement held under this subsection |
22 | | (d-5), the zero emission facility that produces |
23 | | the zero emission credits to be procured in the |
24 | | procurement. |
25 | | The information described in item (iii) of this |
26 | | subparagraph (A) may be submitted on a confidential basis |
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1 | | and shall be treated and maintained by the Agency, the |
2 | | procurement administrator, and the Commission as |
3 | | confidential and proprietary and exempt from disclosure |
4 | | under subparagraphs (a) and (g) of paragraph (1) of Section |
5 | | 7 of the Freedom of Information Act. The Office of Attorney |
6 | | General shall have access to, and maintain the |
7 | | confidentiality of, such information pursuant to Section |
8 | | 6.5 of the Attorney General Act. |
9 | | (B) The price for each zero emission credit |
10 | | procured under this subsection (d-5) for each delivery |
11 | | year shall be in an amount that equals the Social Cost |
12 | | of Carbon, expressed on a price per megawatthour basis. |
13 | | However, to ensure that the procurement remains |
14 | | affordable to retail customers in this State if |
15 | | electricity prices increase, the price in an |
16 | | applicable delivery year shall be reduced below the |
17 | | Social Cost of Carbon by the amount ("Price |
18 | | Adjustment") by which the market price index for the |
19 | | applicable delivery year exceeds the baseline market |
20 | | price index for the consecutive 12-month period ending |
21 | | May 31, 2016. If the Price Adjustment is greater than |
22 | | or equal to the Social Cost of Carbon in an applicable |
23 | | delivery year, then no payments shall be due in that |
24 | | delivery year. The components of this calculation are |
25 | | defined as follows: |
26 | | (i) Social Cost of Carbon: The Social Cost of |
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1 | | Carbon is $16.50 per megawatthour, which is based |
2 | | on the U.S. Interagency Working Group on Social |
3 | | Cost of Carbon's price in the August 2016 Technical |
4 | | Update using a 3% discount rate, adjusted for |
5 | | inflation for each year of the program. Beginning |
6 | | with the delivery year commencing June 1, 2023, the |
7 | | price per megawatthour shall increase by $1 per |
8 | | megawatthour, and continue to increase by an |
9 | | additional $1 per megawatthour each delivery year |
10 | | thereafter. |
11 | | (ii) Baseline market price index: The baseline |
12 | | market price index for the consecutive 12-month |
13 | | period ending May 31, 2016 is $31.40 per |
14 | | megawatthour, which is based on the sum of (aa) the |
15 | | average day-ahead energy price across all hours of |
16 | | such 12-month period at the PJM Interconnection |
17 | | LLC Northern Illinois Hub, (bb) 50% multiplied by |
18 | | the Base Residual Auction, or its successor, |
19 | | capacity price for the rest of the RTO zone group |
20 | | determined by PJM Interconnection LLC, divided by |
21 | | 24 hours per day, and (cc) 50% multiplied by the |
22 | | Planning Resource Auction, or its successor, |
23 | | capacity price for Zone 4 determined by the |
24 | | Midcontinent Independent System Operator, Inc., |
25 | | divided by 24 hours per day. |
26 | | (iii) Market price index: The market price |
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1 | | index for a delivery year shall be the sum of |
2 | | projected energy prices and projected capacity |
3 | | prices determined as follows: |
4 | | (aa) Projected energy prices: the |
5 | | projected energy prices for the applicable |
6 | | delivery year shall be calculated once for the |
7 | | year using the forward market price for the PJM |
8 | | Interconnection, LLC Northern Illinois Hub. |
9 | | The forward market price shall be calculated as |
10 | | follows: the energy forward prices for each |
11 | | month of the applicable delivery year averaged |
12 | | for each trade date during the calendar year |
13 | | immediately preceding that delivery year to |
14 | | produce a single energy forward price for the |
15 | | delivery year. The forward market price |
16 | | calculation shall use data published by the |
17 | | Intercontinental Exchange, or its successor. |
18 | | (bb) Projected capacity prices: |
19 | | (I) For the delivery years commencing |
20 | | June 1, 2017, June 1, 2018, and June 1, |
21 | | 2019, the projected capacity price shall |
22 | | be equal to the sum of (1) 50% multiplied |
23 | | by the Base Residual Auction, or its |
24 | | successor, price for the rest of the RTO |
25 | | zone group as determined by PJM |
26 | | Interconnection LLC, divided by 24 hours |
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1 | | per day and, (2) 50% multiplied by the |
2 | | resource auction price determined in the |
3 | | resource auction administered by the |
4 | | Midcontinent Independent System Operator, |
5 | | Inc., in which the largest percentage of |
6 | | load cleared for Local Resource Zone 4, |
7 | | divided by 24 hours per day, and where such |
8 | | price is determined by the Midcontinent |
9 | | Independent System Operator, Inc. |
10 | | (II) For the delivery year commencing |
11 | | June 1, 2020, and each year thereafter, the |
12 | | projected capacity price shall be equal to |
13 | | the sum of (1) 50% multiplied by the Base |
14 | | Residual Auction, or its successor, price |
15 | | for the ComEd zone as determined by PJM |
16 | | Interconnection LLC, divided by 24 hours |
17 | | per day, and (2) 50% multiplied by the |
18 | | resource auction price determined in the |
19 | | resource auction administered by the |
20 | | Midcontinent Independent System Operator, |
21 | | Inc., in which the largest percentage of |
22 | | load cleared for Local Resource Zone 4, |
23 | | divided by 24 hours per day, and where such |
24 | | price is determined by the Midcontinent |
25 | | Independent System Operator, Inc. |
26 | | For purposes of this subsection (d-5): |
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1 | | "Rest of the RTO" and "ComEd Zone" shall have |
2 | | the meaning ascribed to them by PJM |
3 | | Interconnection, LLC. |
4 | | "RTO" means regional transmission |
5 | | organization. |
6 | | (C) No later than 45 days after the effective date |
7 | | of this amendatory Act of the 99th General Assembly, |
8 | | the Agency shall publish its proposed zero emission |
9 | | standard procurement plan. The plan shall be |
10 | | consistent with the provisions of this paragraph (1) |
11 | | and shall provide that winning bids shall be selected |
12 | | based on public interest criteria that include, but are |
13 | | not limited to, minimizing carbon dioxide emissions |
14 | | that result from electricity consumed in Illinois and |
15 | | minimizing sulfur dioxide, nitrogen oxide, and |
16 | | particulate matter emissions that adversely affect the |
17 | | citizens of this State. In particular, the selection of |
18 | | winning bids shall take into account the incremental |
19 | | environmental benefits resulting from the procurement, |
20 | | such as any existing environmental benefits that are |
21 | | preserved by the procurements held under this |
22 | | amendatory Act of the 99th General Assembly and would |
23 | | cease to exist if the procurements were not held, |
24 | | including the preservation of zero emission |
25 | | facilities. The plan shall also describe in detail how |
26 | | each public interest factor shall be considered and |
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1 | | weighted in the bid selection process to ensure that |
2 | | the public interest criteria are applied to the |
3 | | procurement and given full effect. |
4 | | For purposes of developing the plan, the Agency |
5 | | shall consider any reports issued by a State agency, |
6 | | board, or commission under House Resolution 1146 of the |
7 | | 98th General Assembly and paragraph (4) of subsection |
8 | | (d) of Section 1-75 of this Act, as well as publicly |
9 | | available analyses and studies performed by or for |
10 | | regional transmission organizations that serve the |
11 | | State and their independent market monitors. |
12 | | Upon publishing of the zero emission standard |
13 | | procurement plan, copies of the plan shall be posted |
14 | | and made publicly available on the Agency's website. |
15 | | All interested parties shall have 10 days following the |
16 | | date of posting to provide comment to the Agency on the |
17 | | plan. All comments shall be posted to the Agency's |
18 | | website. Following the end of the comment period, but |
19 | | no more than 60 days later than the effective date of |
20 | | this amendatory Act of the 99th General Assembly, the |
21 | | Agency shall revise the plan as necessary based on the |
22 | | comments received and file its zero emission standard |
23 | | procurement plan with the Commission. |
24 | | If the Commission determines that the plan will |
25 | | result in the procurement of cost-effective zero |
26 | | emission credits, then the Commission shall, after |
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1 | | notice and hearing, but no later than 45 days after the |
2 | | Agency filed the plan, approve the plan or approve with |
3 | | modification. For purposes of this subsection (d-5), |
4 | | "cost effective" means the projected costs of |
5 | | procuring zero emission credits from zero emission |
6 | | facilities do not cause the limit stated in paragraph |
7 | | (2) of this subsection to be exceeded. |
8 | | (C-5) As part of the Commission's review and |
9 | | acceptance or rejection of the procurement results, |
10 | | the Commission shall, in its public notice of |
11 | | successful bidders: |
12 | | (i) identify how the winning bids satisfy the |
13 | | public interest criteria described in subparagraph |
14 | | (C) of this paragraph (1) of minimizing carbon |
15 | | dioxide emissions that result from electricity |
16 | | consumed in Illinois and minimizing sulfur |
17 | | dioxide, nitrogen oxide, and particulate matter |
18 | | emissions that adversely affect the citizens of |
19 | | this State; |
20 | | (ii) specifically address how the selection of |
21 | | winning bids takes into account the incremental |
22 | | environmental benefits resulting from the |
23 | | procurement, including any existing environmental |
24 | | benefits that are preserved by the procurements |
25 | | held under this amendatory Act of the 99th General |
26 | | Assembly and would have ceased to exist if the |
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1 | | procurements had not been held, such as the |
2 | | preservation of zero emission facilities; |
3 | | (iii) quantify the environmental benefit of |
4 | | preserving the resources identified in item (ii) |
5 | | of this subparagraph (C-5), including the |
6 | | following: |
7 | | (aa) the value of avoided greenhouse gas |
8 | | emissions measured as the product of the zero |
9 | | emission facilities' output over the contract |
10 | | term multiplied by the U.S. Environmental |
11 | | Protection Agency eGrid subregion carbon |
12 | | dioxide emission rate and the U.S. Interagency |
13 | | Working Group on Social Cost of Carbon's price |
14 | | in the August 2016 Technical Update using a 3% |
15 | | discount rate, adjusted for inflation for each |
16 | | delivery year; and |
17 | | (bb) the costs of replacement with other |
18 | | zero carbon dioxide resources, including wind |
19 | | and photovoltaic, based upon the simple |
20 | | average of the following: |
21 | | (I) the price, or if there is more than |
22 | | one price, the average of the prices, paid |
23 | | for renewable energy credits from new |
24 | | utility-scale wind projects in the |
25 | | procurement events specified in item (i) |
26 | | of subparagraph (G) of paragraph (1) of |
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1 | | subsection (c) of Section 1-75 of this Act; |
2 | | and |
3 | | (II) the price, or if there is more |
4 | | than one price, the average of the prices, |
5 | | paid for renewable energy credits from new |
6 | | utility-scale solar projects and |
7 | | brownfield site photovoltaic projects in |
8 | | the procurement events specified in item |
9 | | (ii) of subparagraph (G) of paragraph (1) |
10 | | of subsection (c) of Section 1-75 of this |
11 | | Act and, after January 1, 2015, renewable |
12 | | energy credits from photovoltaic |
13 | | distributed generation projects in |
14 | | procurement events held under subsection |
15 | | (c) of Section 1-75 of this Act. |
16 | | Each utility shall enter into binding contractual arrangements |
17 | | with the winning suppliers. |
18 | | The procurement described in this subsection |
19 | | (d-5), including, but not limited to, the execution of |
20 | | all contracts procured, shall be completed no later |
21 | | than May 10, 2017. Based on the effective date of this |
22 | | amendatory Act of the 99th General Assembly, the Agency |
23 | | and Commission may, as appropriate, modify the various |
24 | | dates and timelines under this subparagraph and |
25 | | subparagraphs (C) and (D) of this paragraph (1). The |
26 | | procurement and plan approval processes required by |
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1 | | this subsection (d-5) shall be conducted in |
2 | | conjunction with the procurement and plan approval |
3 | | processes required by subsection (c) of this Section |
4 | | and Section 16-111.5 of the Public Utilities Act, to |
5 | | the extent practicable. Notwithstanding whether a |
6 | | procurement event is conducted under Section 16-111.5 |
7 | | of the Public Utilities Act, the Agency shall |
8 | | immediately initiate a procurement process on the |
9 | | effective date of this amendatory Act of the 99th |
10 | | General Assembly. |
11 | | (D) Following the procurement event described in |
12 | | this paragraph (1) and consistent with subparagraph |
13 | | (B) of this paragraph (1), the Agency shall calculate |
14 | | the payments to be made under each contract for the |
15 | | next delivery year based on the market price index for |
16 | | that delivery year. The Agency shall publish the |
17 | | payment calculations no later than May 25, 2017 and |
18 | | every May 25 thereafter. |
19 | | (E) Notwithstanding the requirements of this |
20 | | subsection (d-5), the contracts executed under this |
21 | | subsection (d-5) shall provide that the zero emission |
22 | | facility may, as applicable, suspend or terminate |
23 | | performance under the contracts in the following |
24 | | instances: |
25 | | (i) A zero emission facility shall be excused |
26 | | from its performance under the contract for any |
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1 | | cause beyond the control of the resource, |
2 | | including, but not restricted to, acts of God, |
3 | | flood, drought, earthquake, storm, fire, |
4 | | lightning, epidemic, war, riot, civil disturbance |
5 | | or disobedience, labor dispute, labor or material |
6 | | shortage, sabotage, acts of public enemy, |
7 | | explosions, orders, regulations or restrictions |
8 | | imposed by governmental, military, or lawfully |
9 | | established civilian authorities, which, in any of |
10 | | the foregoing cases, by exercise of commercially |
11 | | reasonable efforts the zero emission facility |
12 | | could not reasonably have been expected to avoid, |
13 | | and which, by the exercise of commercially |
14 | | reasonable efforts, it has been unable to |
15 | | overcome. In such event, the zero emission |
16 | | facility shall be excused from performance for the |
17 | | duration of the event, including, but not limited |
18 | | to, delivery of zero emission credits, and no |
19 | | payment shall be due to the zero emission facility |
20 | | during the duration of the event. |
21 | | (ii) A zero emission facility shall be |
22 | | permitted to terminate the contract if legislation |
23 | | is enacted into law by the General Assembly that |
24 | | imposes or authorizes a new tax, special |
25 | | assessment, or fee on the generation of |
26 | | electricity, the ownership or leasehold of a |
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1 | | generating unit, or the privilege or occupation of |
2 | | such generation, ownership, or leasehold of |
3 | | generation units by a zero emission facility. |
4 | | However, the provisions of this item (ii) do not |
5 | | apply to any generally applicable tax, special |
6 | | assessment or fee, or requirements imposed by |
7 | | federal law. |
8 | | (iii) A zero emission facility shall be |
9 | | permitted to terminate the contract in the event |
10 | | that the resource requires capital expenditures in |
11 | | excess of $40,000,000 that were neither known nor |
12 | | reasonably foreseeable at the time it executed the |
13 | | contract and that a prudent owner or operator of |
14 | | such resource would not undertake. |
15 | | (iv) A zero emission facility shall be |
16 | | permitted to terminate the contract in the event |
17 | | the Nuclear Regulatory Commission terminates the |
18 | | resource's license. |
19 | | (F) If the zero emission facility elects to |
20 | | terminate a contract under this subparagraph (E, of |
21 | | this paragraph (1), then the Commission shall reopen |
22 | | the docket in which the Commission approved the zero |
23 | | emission standard procurement plan under subparagraph |
24 | | (C) of this paragraph (1) and, after notice and |
25 | | hearing, enter an order acknowledging the contract |
26 | | termination election if such termination is consistent |
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1 | | with the provisions of this subsection (d-5). |
2 | | (2) For purposes of this subsection (d-5), the amount |
3 | | paid per kilowatthour means the total amount paid for |
4 | | electric service expressed on a per kilowatthour basis. For |
5 | | purposes of this subsection (d-5), the total amount paid |
6 | | for electric service includes, without limitation, amounts |
7 | | paid for supply, transmission, distribution, surcharges, |
8 | | and add-on taxes. |
9 | | Notwithstanding the requirements of this subsection |
10 | | (d-5), the contracts executed under this subsection (d-5) |
11 | | shall provide that the total of zero emission credits |
12 | | procured under a procurement plan shall be subject to the |
13 | | limitations of this paragraph (2). For each rolling 4-year |
14 | | period, the contractual volume shall be reduced for all |
15 | | retail customers based on the amount necessary to limit the |
16 | | annual estimated average net increase for each year in each |
17 | | 4-year period due to the costs of these credits included in |
18 | | the amounts paid by eligible retail customers in connection |
19 | | with electric service to no more than 1.65% of the amount |
20 | | paid per kilowatthour by eligible retail customers during |
21 | | the year ending May 31, 2009. The result of this |
22 | | computation shall apply to and reduce the procurement for |
23 | | all retail customers, and all those customers shall pay the |
24 | | same single, uniform cents per kilowatthour charge under |
25 | | subsection (k) of Section 16-108 of the Public Utilities |
26 | | Act. To arrive at a maximum dollar amount of zero emission |
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1 | | credits to be procured for the particular delivery year, |
2 | | the resulting per kilowatthour amount shall be applied to |
3 | | the actual amount of kilowatthours of electricity |
4 | | delivered by the electric utility in the delivery year |
5 | | immediately prior to the procurement, to all retail |
6 | | customers in its service territory. The calculations |
7 | | required by this paragraph (2) shall be made only once for |
8 | | each procurement plan year. Once the determination as to |
9 | | the amount of zero emission credits to procure is made |
10 | | based on the calculations set forth in this paragraph (2), |
11 | | no subsequent rate impact determinations shall be made and |
12 | | no adjustments to those contract amounts shall be allowed. |
13 | | All costs incurred under those contracts and in |
14 | | implementing this subsection (d-5) shall be recovered by |
15 | | the electric utility as provided in this Section. |
16 | | No later than June 30, 2019, the Commission shall |
17 | | review the limitation on the amount of zero emission |
18 | | credits procured under this subsection (d-5) and report to |
19 | | the General Assembly its findings as to whether that |
20 | | limitation unduly constrains the procurement of |
21 | | cost-effective zero emission credits. |
22 | | (3) Six years after the execution of a contract under |
23 | | this subsection (d-5), the Agency shall determine whether |
24 | | the actual zero emission credit payments received by the |
25 | | supplier over the 6-year period exceed the Average ZEC |
26 | | Payment. In addition, at the end of the term of a contract |
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1 | | executed under this subsection (d-5), or at the time, if |
2 | | any, a zero emission facility's contract is terminated |
3 | | under subparagraph (E) of paragraph (1) of this subsection |
4 | | (d-5), then the Agency shall determine whether the actual |
5 | | zero emission credit payments received by the supplier over |
6 | | the term of the contract exceed the Average ZEC Payment, |
7 | | after taking into account any amounts previously credited |
8 | | back to the utility under this paragraph (3). If the Agency |
9 | | determines that the actual zero emission credit payments |
10 | | received by the supplier over the relevant period exceed |
11 | | the Average ZEC Payment, then the supplier shall credit the |
12 | | difference back to the utility. The amount of the credit |
13 | | shall be remitted to the applicable electric utility no |
14 | | later than 120 days after the Agency's determination, which |
15 | | the utility shall reflect as a credit on its retail |
16 | | customer bills as soon as practicable; however, the credit |
17 | | remitted to the utility shall not exceed the total amount |
18 | | of payments received by the facility under its contract. |
19 | | For purposes of this Section, the Average ZEC Payment |
20 | | shall be calculated by multiplying the quantity of zero |
21 | | emission credits delivered under the contract times the |
22 | | average contract price. The average contract price shall be |
23 | | determined by subtracting the amount calculated under |
24 | | subparagraph (B) of this paragraph (3) from the amount |
25 | | calculated under subparagraph (A) of this paragraph (3), as |
26 | | follows: |
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1 | | (A) The average of the Social Cost of Carbon, as |
2 | | defined in subparagraph (B) of paragraph (1) of this |
3 | | subsection (d-5), during the term of the contract. |
4 | | (B) The average of the market price indices, as |
5 | | defined in subparagraph (B) of paragraph (1) of this |
6 | | subsection (d-5), during the term of the contract, |
7 | | minus the baseline market price index, as defined in |
8 | | subparagraph (B) of paragraph (1) of this subsection |
9 | | (d-5). |
10 | | If the subtraction yields a negative number, then the |
11 | | Average ZEC Payment shall be zero. |
12 | | (4) Cost-effective zero emission credits procured from |
13 | | zero emission facilities shall satisfy the applicable |
14 | | definitions set forth in Section 1-10 of this Act. |
15 | | (5) The electric utility shall retire all zero emission |
16 | | credits used to comply with the requirements of this |
17 | | subsection (d-5). |
18 | | (6) Electric utilities shall be entitled to recover all |
19 | | of the costs associated with the procurement of zero |
20 | | emission credits through an automatic adjustment clause |
21 | | tariff in accordance with subsection (k) of Section 16-108 |
22 | | of the Public Utilities Act. |
23 | | (7)This subsection (d-5) shall become inoperative on |
24 | | January 1, 2028. |
25 | | (e) The draft procurement plans are subject to public |
26 | | comment, as required by Section 16-111.5 of the Public |
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1 | | Utilities Act. |
2 | | (f) The Agency shall submit the final procurement plan to |
3 | | the Commission. The Agency shall revise a procurement plan if |
4 | | the Commission determines that it does not meet the standards |
5 | | set forth in Section 16-111.5 of the Public Utilities Act. |
6 | | (g) The Agency shall assess fees to each affected utility |
7 | | to recover the costs incurred in preparation of the annual |
8 | | procurement plan for the utility. |
9 | | (h) The Agency shall assess fees to each bidder to recover |
10 | | the costs incurred in connection with a competitive procurement |
11 | | process.
|
12 | | (i) A renewable energy credit, carbon emission credit, or |
13 | | zero emission credit can only be used once to comply with a |
14 | | single portfolio or other standard as set forth in subsection |
15 | | (c), subsection (d), or subsection (d-5) of this Section, |
16 | | respectively. A renewable energy credit, carbon emission |
17 | | credit, or zero emission credit cannot be used to satisfy the |
18 | | requirements of more than one standard. If more than one type |
19 | | of credit is issued for the same megawatt hour of energy, only |
20 | | one credit can be used to satisfy the requirements of a single |
21 | | standard. After such use, the credit must be retired together |
22 | | with any other credits issued for the same megawatt hour of |
23 | | energy. |
24 | | (Source: P.A. 98-463, eff. 8-16-13; 99-536, eff. 7-8-16.) |
25 | | Section 10. The Illinois Procurement Code is amended by |
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1 | | changing Section 20-10 as follows:
|
2 | | (30 ILCS 500/20-10)
|
3 | | (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895, |
4 | | and 98-1076) |
5 | | Sec. 20-10. Competitive sealed bidding; reverse auction.
|
6 | | (a) Conditions for use. All contracts shall be awarded by
|
7 | | competitive sealed bidding
except as otherwise provided in |
8 | | Section 20-5.
|
9 | | (b) Invitation for bids. An invitation for bids shall be
|
10 | | issued and shall include a
purchase description and the |
11 | | material contractual terms and
conditions applicable to the
|
12 | | procurement.
|
13 | | (c) Public notice. Public notice of the invitation for bids |
14 | | shall be
published in the Illinois Procurement Bulletin at |
15 | | least 14 calendar days before the date
set in the invitation |
16 | | for the opening of bids.
|
17 | | (d) Bid opening. Bids shall be opened publicly in the
|
18 | | presence of one or more witnesses
at the time and place |
19 | | designated in the invitation for bids. The
name of each bidder, |
20 | | the amount
of each bid, and other relevant information as may |
21 | | be specified by
rule shall be
recorded. After the award of the |
22 | | contract, the winning bid and the
record of each unsuccessful |
23 | | bid shall be open to
public inspection.
|
24 | | (e) Bid acceptance and bid evaluation. Bids shall be
|
25 | | unconditionally accepted without
alteration or correction, |
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1 | | except as authorized in this Code. Bids
shall be evaluated |
2 | | based on the
requirements set forth in the invitation for bids, |
3 | | which may
include criteria to determine
acceptability such as |
4 | | inspection, testing, quality, workmanship,
delivery, and |
5 | | suitability for a
particular purpose. Those criteria that will |
6 | | affect the bid price
and be considered in evaluation
for award, |
7 | | such as discounts, transportation costs, and total or
life |
8 | | cycle costs, shall be
objectively measurable. The invitation |
9 | | for bids shall set forth
the evaluation criteria to be used.
|
10 | | (f) Correction or withdrawal of bids. Correction or
|
11 | | withdrawal of inadvertently
erroneous bids before or after |
12 | | award, or cancellation of awards of
contracts based on bid
|
13 | | mistakes, shall be permitted in accordance with rules.
After |
14 | | bid opening, no
changes in bid prices or other provisions of |
15 | | bids prejudicial to
the interest of the State or fair
|
16 | | competition shall be permitted. All decisions to permit the
|
17 | | correction or withdrawal of bids
based on bid mistakes shall be |
18 | | supported by written determination
made by a State purchasing |
19 | | officer.
|
20 | | (g) Award. The contract shall be awarded with reasonable
|
21 | | promptness by written notice
to the lowest responsible and |
22 | | responsive bidder whose bid meets
the requirements and criteria
|
23 | | set forth in the invitation for bids, except when a State |
24 | | purchasing officer
determines it is not in the best interest of |
25 | | the State and by written
explanation determines another bidder |
26 | | shall receive the award. The explanation
shall appear in the |
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1 | | appropriate volume of the Illinois Procurement Bulletin. The |
2 | | written explanation must include:
|
3 | | (1) a description of the agency's needs; |
4 | | (2) a determination that the anticipated cost will be |
5 | | fair and reasonable; |
6 | | (3) a listing of all responsible and responsive |
7 | | bidders; and |
8 | | (4) the name of the bidder selected, the total contract |
9 | | price, and the reasons for selecting that bidder. |
10 | | Each chief procurement officer may adopt guidelines to |
11 | | implement the requirements of this subsection (g). |
12 | | The written explanation shall be filed with the Legislative |
13 | | Audit Commission and the Procurement Policy Board, and be made |
14 | | available for inspection by the public, within 30 calendar days |
15 | | after the agency's decision to award the contract. |
16 | | (h) Multi-step sealed bidding. When it is considered
|
17 | | impracticable to initially prepare
a purchase description to |
18 | | support an award based on price, an
invitation for bids may be |
19 | | issued
requesting the submission of unpriced offers to be |
20 | | followed by an
invitation for bids limited to
those bidders |
21 | | whose offers have been qualified under the criteria
set forth |
22 | | in the first solicitation.
|
23 | | (i) Alternative procedures. Notwithstanding any other |
24 | | provision of this Act to the contrary, the Director of the |
25 | | Illinois Power Agency may create alternative bidding |
26 | | procedures to be used in procuring professional services under |
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1 | | subsections subsection (a) and (c) of Section 1-75 and |
2 | | subsection (d) of Section 1-78 of the Illinois Power Agency Act |
3 | | and Section 16-111.5(c) of the Public Utilities Act and to |
4 | | procure renewable energy resources under Section 1-56 of the |
5 | | Illinois Power Agency Act. These alternative procedures shall |
6 | | be set forth together with the other criteria contained in the |
7 | | invitation for bids, and shall appear in the appropriate volume |
8 | | of the Illinois Procurement Bulletin.
|
9 | | (j) Reverse auction. Notwithstanding any other provision |
10 | | of this Section and in accordance with rules adopted by the |
11 | | chief procurement officer, that chief procurement officer may |
12 | | procure supplies or services through a competitive electronic |
13 | | auction bidding process after the chief procurement officer |
14 | | determines that the use of such a process will be in the best |
15 | | interest of the State. The chief procurement officer shall |
16 | | publish that determination in his or her next volume of the |
17 | | Illinois Procurement Bulletin. |
18 | | An invitation for bids shall be issued and shall include |
19 | | (i) a procurement description, (ii) all contractual terms, |
20 | | whenever practical, and (iii) conditions applicable to the |
21 | | procurement, including a notice that bids will be received in |
22 | | an electronic auction manner. |
23 | | Public notice of the invitation for bids shall be given in |
24 | | the same manner as provided in subsection (c). |
25 | | Bids shall be accepted electronically at the time and in |
26 | | the manner designated in the invitation for bids. During the |
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1 | | auction, a bidder's price shall be disclosed to other bidders. |
2 | | Bidders shall have the opportunity to reduce their bid prices |
3 | | during the auction. At the conclusion of the auction, the |
4 | | record of the bid prices received and the name of each bidder |
5 | | shall be open to public inspection. |
6 | | After the auction period has terminated, withdrawal of bids |
7 | | shall be permitted as provided in subsection (f). |
8 | | The contract shall be awarded within 60 calendar days after |
9 | | the auction by written notice to the lowest responsible bidder, |
10 | | or all bids shall be rejected except as otherwise provided in |
11 | | this Code. Extensions of the date for the award may be made by |
12 | | mutual written consent of the State purchasing officer and the |
13 | | lowest responsible bidder. |
14 | | This subsection does not apply to (i) procurements of |
15 | | professional and artistic services, (ii) telecommunications |
16 | | services, communication services, and information services, |
17 | | and (iii) contracts for construction projects, including |
18 | | design professional services. |
19 | | (Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12; |
20 | | 98-1076, eff. 1-1-15.)
|
21 | | (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895, |
22 | | and 98-1076)
|
23 | | Sec. 20-10. Competitive sealed bidding; reverse auction.
|
24 | | (a) Conditions for use. All contracts shall be awarded by
|
25 | | competitive sealed bidding
except as otherwise provided in |
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1 | | Section 20-5.
|
2 | | (b) Invitation for bids. An invitation for bids shall be
|
3 | | issued and shall include a
purchase description and the |
4 | | material contractual terms and
conditions applicable to the
|
5 | | procurement.
|
6 | | (c) Public notice. Public notice of the invitation for bids |
7 | | shall be
published in the Illinois Procurement Bulletin at |
8 | | least 14 calendar days before the date
set in the invitation |
9 | | for the opening of bids.
|
10 | | (d) Bid opening. Bids shall be opened publicly in the
|
11 | | presence of one or more witnesses
at the time and place |
12 | | designated in the invitation for bids. The
name of each bidder, |
13 | | the amount
of each bid, and other relevant information as may |
14 | | be specified by
rule shall be
recorded. After the award of the |
15 | | contract, the winning bid and the
record of each unsuccessful |
16 | | bid shall be open to
public inspection.
|
17 | | (e) Bid acceptance and bid evaluation. Bids shall be
|
18 | | unconditionally accepted without
alteration or correction, |
19 | | except as authorized in this Code. Bids
shall be evaluated |
20 | | based on the
requirements set forth in the invitation for bids, |
21 | | which may
include criteria to determine
acceptability such as |
22 | | inspection, testing, quality, workmanship,
delivery, and |
23 | | suitability for a
particular purpose. Those criteria that will |
24 | | affect the bid price
and be considered in evaluation
for award, |
25 | | such as discounts, transportation costs, and total or
life |
26 | | cycle costs, shall be
objectively measurable. The invitation |
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1 | | for bids shall set forth
the evaluation criteria to be used.
|
2 | | (f) Correction or withdrawal of bids. Correction or
|
3 | | withdrawal of inadvertently
erroneous bids before or after |
4 | | award, or cancellation of awards of
contracts based on bid
|
5 | | mistakes, shall be permitted in accordance with rules.
After |
6 | | bid opening, no
changes in bid prices or other provisions of |
7 | | bids prejudicial to
the interest of the State or fair
|
8 | | competition shall be permitted. All decisions to permit the
|
9 | | correction or withdrawal of bids
based on bid mistakes shall be |
10 | | supported by written determination
made by a State purchasing |
11 | | officer.
|
12 | | (g) Award. The contract shall be awarded with reasonable
|
13 | | promptness by written notice
to the lowest responsible and |
14 | | responsive bidder whose bid meets
the requirements and criteria
|
15 | | set forth in the invitation for bids, except when a State |
16 | | purchasing officer
determines it is not in the best interest of |
17 | | the State and by written
explanation determines another bidder |
18 | | shall receive the award. The explanation
shall appear in the |
19 | | appropriate volume of the Illinois Procurement Bulletin. The |
20 | | written explanation must include:
|
21 | | (1) a description of the agency's needs; |
22 | | (2) a determination that the anticipated cost will be |
23 | | fair and reasonable; |
24 | | (3) a listing of all responsible and responsive |
25 | | bidders; and |
26 | | (4) the name of the bidder selected, the total contract |
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1 | | price, and the reasons for selecting that bidder. |
2 | | Each chief procurement officer may adopt guidelines to |
3 | | implement the requirements of this subsection (g). |
4 | | The written explanation shall be filed with the Legislative |
5 | | Audit Commission and the Procurement Policy Board, and be made |
6 | | available for inspection by the public, within 30 days after |
7 | | the agency's decision to award the contract. |
8 | | (h) Multi-step sealed bidding. When it is considered
|
9 | | impracticable to initially prepare
a purchase description to |
10 | | support an award based on price, an
invitation for bids may be |
11 | | issued
requesting the submission of unpriced offers to be |
12 | | followed by an
invitation for bids limited to
those bidders |
13 | | whose offers have been qualified under the criteria
set forth |
14 | | in the first solicitation.
|
15 | | (i) Alternative procedures. Notwithstanding any other |
16 | | provision of this Act to the contrary, the Director of the |
17 | | Illinois Power Agency may create alternative bidding |
18 | | procedures to be used in procuring professional services under |
19 | | subsections subsection (a) and (c) of Section 1-75 and |
20 | | subsection (d) of Section 1-78 of the Illinois Power Agency Act |
21 | | and Section 16-111.5(c) of the Public Utilities Act and to |
22 | | procure renewable energy resources under Section 1-56 of the |
23 | | Illinois Power Agency Act. These alternative procedures shall |
24 | | be set forth together with the other criteria contained in the |
25 | | invitation for bids, and shall appear in the appropriate volume |
26 | | of the Illinois Procurement Bulletin.
|
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1 | | (j) Reverse auction. Notwithstanding any other provision |
2 | | of this Section and in accordance with rules adopted by the |
3 | | chief procurement officer, that chief procurement officer may |
4 | | procure supplies or services through a competitive electronic |
5 | | auction bidding process after the chief procurement officer |
6 | | determines that the use of such a process will be in the best |
7 | | interest of the State. The chief procurement officer shall |
8 | | publish that determination in his or her next volume of the |
9 | | Illinois Procurement Bulletin. |
10 | | An invitation for bids shall be issued and shall include |
11 | | (i) a procurement description, (ii) all contractual terms, |
12 | | whenever practical, and (iii) conditions applicable to the |
13 | | procurement, including a notice that bids will be received in |
14 | | an electronic auction manner. |
15 | | Public notice of the invitation for bids shall be given in |
16 | | the same manner as provided in subsection (c). |
17 | | Bids shall be accepted electronically at the time and in |
18 | | the manner designated in the invitation for bids. During the |
19 | | auction, a bidder's price shall be disclosed to other bidders. |
20 | | Bidders shall have the opportunity to reduce their bid prices |
21 | | during the auction. At the conclusion of the auction, the |
22 | | record of the bid prices received and the name of each bidder |
23 | | shall be open to public inspection. |
24 | | After the auction period has terminated, withdrawal of bids |
25 | | shall be permitted as provided in subsection (f). |
26 | | The contract shall be awarded within 60 calendar days after |
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1 | | the auction by written notice to the lowest responsible bidder, |
2 | | or all bids shall be rejected except as otherwise provided in |
3 | | this Code. Extensions of the date for the award may be made by |
4 | | mutual written consent of the State purchasing officer and the |
5 | | lowest responsible bidder. |
6 | | This subsection does not apply to (i) procurements of |
7 | | professional and artistic services, (ii) telecommunications |
8 | | services, communication services, and information services,
|
9 | | and (iii) contracts for construction projects, including |
10 | | design professional services. |
11 | | (Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12; |
12 | | 98-1076, eff. 1-1-15 .) |
13 | | Section 15. The Public Utilities Act is amended by changing |
14 | | Sections 5-202.1, 8-103, 8-104, 16-107, 16-107.5, 16-108, |
15 | | 16-108.5, 16-111.1, 16-111.5, 16-111.5B, 16-111.7, 16-115D, |
16 | | 16-119A, and 16-127 and by adding Sections 8-103B, 9-107, |
17 | | 16-107.6, 16-108.9, 16-108.10, 16-108.11, and 16-108.12 as |
18 | | follows:
|
19 | | (220 ILCS 5/5-202.1)
|
20 | | Sec. 5-202.1. Misrepresentation before Commission; |
21 | | penalty.
|
22 | | (a) Any person or corporation, as defined in Sections 3-113 |
23 | | and 3-114 of
this Act, who knowingly misrepresents facts to the |
24 | | Commission in response to any Commission contact, inquiry or |
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1 | | discussion or knowingly aids another in doing
so in response to |
2 | | any Commission contact, inquiry or discussion or knowingly |
3 | | permits another to
misrepresent facts through testimony or the |
4 | | offering or withholding of
material information in any
|
5 | | proceeding shall be subject to a civil penalty. Whenever
the |
6 | | Commission is of
the opinion that a person or corporation is |
7 | | misrepresenting or has
misrepresented facts,
the Commission |
8 | | may initiate a proceeding to determine
whether a |
9 | | misrepresentation has in fact occurred. If the Commission finds
|
10 | | that a person or corporation has violated this Section, the |
11 | | Commission shall
impose a penalty of not less than $1,000 and |
12 | | not greater than $500,000 . Each
misrepresentation of a fact
|
13 | | found by the
Commission shall constitute a separate and |
14 | | distinct violation. In determining
the amount of the penalty to |
15 | | be assessed, the Commission may consider any
matters of record |
16 | | in aggravation or mitigation of the penalty, as set forth in
|
17 | | Section 4-203, including but not limited to the following:
|
18 | | (1) the presence or absence of due diligence on the |
19 | | part of the violator
in attempting to comply with the Act;
|
20 | | (2) any economic benefits accrued, or expected to be |
21 | | accrued, by the
violator because of the misrepresentation; |
22 | | and
|
23 | | (3) the amount of monetary penalty that will serve to |
24 | | deter further
violations by the violator and to otherwise |
25 | | aid in enhancing
voluntary compliance with the Act.
|
26 | | (b) Any action to enforce civil penalties arising under |
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1 | | this Section
shall
be undertaken pursuant to Section 4-203.
|
2 | | (c) For purposes of this Section, "Commission," as defined |
3 | | in Section 3-102, refers to any Commissioner, agent, or |
4 | | employee of the Illinois Commerce commission, and also refers |
5 | | to any other person engaged to represent the Commission in |
6 | | carrying out its regulatory or law enforcement obligations. |
7 | | (Source: P.A. 93-457, eff. 8-8-03.)
|
8 | | (220 ILCS 5/8-103)
|
9 | | Sec. 8-103. Energy efficiency and demand-response |
10 | | measures. |
11 | | (a) It is the policy of the State that electric utilities |
12 | | are required to use cost-effective energy efficiency and |
13 | | demand-response measures to reduce delivery load. Requiring |
14 | | investment in cost-effective energy efficiency and |
15 | | demand-response measures will reduce direct and indirect costs |
16 | | to consumers by decreasing environmental impacts and by |
17 | | avoiding or delaying the need for new generation, transmission, |
18 | | and distribution infrastructure. It serves the public interest |
19 | | to allow electric utilities to recover costs for reasonably and |
20 | | prudently incurred expenses for energy efficiency and |
21 | | demand-response measures. As used in this Section, |
22 | | "cost-effective" means that the measures satisfy the total |
23 | | resource cost test. The low-income measures described in |
24 | | subsection (f)(4) of this Section shall not be required to meet |
25 | | the total resource cost test. For purposes of this Section, the |
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1 | | terms "energy-efficiency", "demand-response", "electric |
2 | | utility", and "total resource cost test" shall have the |
3 | | meanings set forth in the Illinois Power Agency Act. For |
4 | | purposes of this Section, the amount per kilowatthour means the |
5 | | total amount paid for electric service expressed on a per |
6 | | kilowatthour basis. For purposes of this Section, the total |
7 | | amount paid for electric service includes without limitation |
8 | | estimated amounts paid for supply, transmission, distribution, |
9 | | surcharges, and add-on-taxes. |
10 | | (a-5) This Section applies to electric utilities serving |
11 | | 500,000 or less but more than 200,000 retail customers in this |
12 | | State. Through December 31, 2017, this Section also applies to |
13 | | electric utilities serving more than 500,000 retail customers |
14 | | in the State. |
15 | | (b) Electric utilities shall implement cost-effective |
16 | | energy efficiency measures to meet the following incremental |
17 | | annual energy savings goals: |
18 | | (1) 0.2% of energy delivered in the year commencing |
19 | | June 1, 2008; |
20 | | (2) 0.4% of energy delivered in the year commencing |
21 | | June 1, 2009; |
22 | | (3) 0.6% of energy delivered in the year commencing |
23 | | June 1, 2010; |
24 | | (4) 0.8% of energy delivered in the year commencing |
25 | | June 1, 2011; |
26 | | (5) 1% of energy delivered in the year commencing June |
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1 | | 1, 2012; |
2 | | (6) 1.4% of energy delivered in the year commencing |
3 | | June 1, 2013; |
4 | | (7) 1.8% of energy delivered in the year commencing |
5 | | June 1, 2014; and |
6 | | (8) 2% of energy delivered in the year commencing June |
7 | | 1, 2015 and each year thereafter. |
8 | | Electric utilities may comply with this subsection (b) by |
9 | | meeting the annual incremental savings goal in the applicable |
10 | | year or by showing that the total cumulative annual savings |
11 | | within a 3-year planning period associated with measures |
12 | | implemented after May 31, 2014 was equal to the sum of each |
13 | | annual incremental savings requirement from May 31, 2014 |
14 | | through the end of the applicable year. |
15 | | (c) Electric utilities shall implement cost-effective |
16 | | demand-response measures to reduce peak demand by 0.1% over the |
17 | | prior year for eligible retail customers, as defined in Section |
18 | | 16-111.5 of this Act, and for customers that elect hourly |
19 | | service from the utility pursuant to Section 16-107 of this |
20 | | Act, provided those customers have not been declared |
21 | | competitive. This requirement commences June 1, 2008 and |
22 | | continues for 10 years. |
23 | | (d) Notwithstanding the requirements of subsections (b) |
24 | | and (c) of this Section, an electric utility shall reduce the |
25 | | amount of energy efficiency and demand-response measures |
26 | | implemented over a 3-year planning period by an amount |
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1 | | necessary to limit the estimated average annual increase in the |
2 | | amounts paid by retail customers in connection with electric |
3 | | service due to the cost of those measures to: |
4 | | (1) in 2008, no more than 0.5% of the amount paid per |
5 | | kilowatthour by those customers during the year ending May |
6 | | 31, 2007; |
7 | | (2) in 2009, the greater of an additional 0.5% of the |
8 | | amount paid per kilowatthour by those customers during the |
9 | | year ending May 31, 2008 or 1% of the amount paid per |
10 | | kilowatthour by those customers during the year ending May |
11 | | 31, 2007; |
12 | | (3) in 2010, the greater of an additional 0.5% of the |
13 | | amount paid per kilowatthour by those customers during the |
14 | | year ending May 31, 2009 or 1.5% of the amount paid per |
15 | | kilowatthour by those customers during the year ending May |
16 | | 31, 2007; |
17 | | (4) in 2011, the greater of an additional 0.5% of the |
18 | | amount paid per kilowatthour by those customers during the |
19 | | year ending May 31, 2010 or 2% of the amount paid per |
20 | | kilowatthour by those customers during the year ending May |
21 | | 31, 2007; and
|
22 | | (5) thereafter, the amount of energy efficiency and |
23 | | demand-response measures implemented for any single year |
24 | | shall be reduced by an amount necessary to limit the |
25 | | estimated average net increase due to the cost of these |
26 | | measures included in the amounts paid by eligible retail |
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1 | | customers in connection with electric service to no more |
2 | | than the greater of 2.015% of the amount paid per |
3 | | kilowatthour by those customers during the year ending May |
4 | | 31, 2007 or the incremental amount per kilowatthour paid |
5 | | for these measures in 2011.
|
6 | | No later than June 30, 2011, the Commission shall review |
7 | | the limitation on the amount of energy efficiency and |
8 | | demand-response measures implemented pursuant to this Section |
9 | | and report to the General Assembly its findings as to whether |
10 | | that limitation unduly constrains the procurement of energy |
11 | | efficiency and demand-response measures. |
12 | | (e) Electric utilities shall be responsible for overseeing |
13 | | the design, development, and filing of energy efficiency and |
14 | | demand-response plans with the Commission. Electric utilities |
15 | | shall implement 100% of the demand-response measures in the |
16 | | plans. Electric utilities shall implement 75% of the energy |
17 | | efficiency measures approved by the Commission, and may, as |
18 | | part of that implementation, outsource various aspects of |
19 | | program development and implementation. The remaining 25% of |
20 | | those energy efficiency measures approved by the Commission |
21 | | shall be implemented by the Department of Commerce and Economic |
22 | | Opportunity, and must be designed in conjunction with the |
23 | | utility and the filing process. The Department may outsource |
24 | | development and implementation of energy efficiency measures. |
25 | | A minimum of 10% of the entire portfolio of cost-effective |
26 | | energy efficiency measures shall be procured from units of |
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1 | | local government, municipal corporations, school districts, |
2 | | and community college districts. The Department shall |
3 | | coordinate the implementation of these measures. |
4 | | The apportionment of the dollars to cover the costs to |
5 | | implement the Department's share of the portfolio of energy |
6 | | efficiency measures shall be made to the Department once the |
7 | | Department has executed rebate agreements, grants, or |
8 | | contracts for energy efficiency measures and provided |
9 | | supporting documentation for those rebate agreements, grants, |
10 | | and contracts to the utility. The Department is authorized to |
11 | | adopt any rules necessary and prescribe procedures in order to |
12 | | ensure compliance by applicants in carrying out the purposes of |
13 | | rebate agreements for energy efficiency measures implemented |
14 | | by the Department made under this Section. |
15 | | The details of the measures implemented by the Department |
16 | | shall be submitted by the Department to the Commission in |
17 | | connection with the utility's filing regarding the energy |
18 | | efficiency and demand-response measures that the utility |
19 | | implements. |
20 | | A utility providing approved energy efficiency and |
21 | | demand-response measures in the State shall be permitted to |
22 | | recover costs of those measures through an automatic adjustment |
23 | | clause tariff filed with and approved by the Commission. The |
24 | | tariff shall be established outside the context of a general |
25 | | rate case. Each year the Commission shall initiate a review to |
26 | | reconcile any amounts collected with the actual costs and to |
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1 | | determine the required adjustment to the annual tariff factor |
2 | | to match annual expenditures. |
3 | | Each utility shall include, in its recovery of costs, the |
4 | | costs estimated for both the utility's and the Department's |
5 | | implementation of energy efficiency and demand-response |
6 | | measures. Costs collected by the utility for measures |
7 | | implemented by the Department shall be submitted to the |
8 | | Department pursuant to Section 605-323 of the Civil |
9 | | Administrative Code of Illinois, shall be deposited into the |
10 | | Energy Efficiency Portfolio Standards Fund, and shall be used |
11 | | by the Department solely for the purpose of implementing these |
12 | | measures. A utility shall not be required to advance any moneys |
13 | | to the Department but only to forward such funds as it has |
14 | | collected. The Department shall report to the Commission on an |
15 | | annual basis regarding the costs actually incurred by the |
16 | | Department in the implementation of the measures. Any changes |
17 | | to the costs of energy efficiency measures as a result of plan |
18 | | modifications shall be appropriately reflected in amounts |
19 | | recovered by the utility and turned over to the Department. |
20 | | The portfolio of measures, administered by both the |
21 | | utilities and the Department, shall, in combination, be |
22 | | designed to achieve the annual savings targets described in |
23 | | subsections (b) and (c) of this Section, as modified by |
24 | | subsection (d) of this Section. |
25 | | The utility and the Department shall agree upon a |
26 | | reasonable portfolio of measures and determine the measurable |
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1 | | corresponding percentage of the savings goals associated with |
2 | | measures implemented by the utility or Department. |
3 | | No utility shall be assessed a penalty under subsection (f) |
4 | | of this Section for failure to make a timely filing if that |
5 | | failure is the result of a lack of agreement with the |
6 | | Department with respect to the allocation of responsibilities |
7 | | or related costs or target assignments. In that case, the |
8 | | Department and the utility shall file their respective plans |
9 | | with the Commission and the Commission shall determine an |
10 | | appropriate division of measures and programs that meets the |
11 | | requirements of this Section. |
12 | | If the Department is unable to meet incremental annual |
13 | | performance goals for the portion of the portfolio implemented |
14 | | by the Department, then the utility and the Department shall |
15 | | jointly submit a modified filing to the Commission explaining |
16 | | the performance shortfall and recommending an appropriate |
17 | | course going forward, including any program modifications that |
18 | | may be appropriate in light of the evaluations conducted under |
19 | | item (7) of subsection (f) of this Section. In this case, the |
20 | | utility obligation to collect the Department's costs and turn |
21 | | over those funds to the Department under this subsection (e) |
22 | | shall continue only if the Commission approves the |
23 | | modifications to the plan proposed by the Department. |
24 | | (f) No later than November 15, 2007, each electric utility |
25 | | shall file an energy efficiency and demand-response plan with |
26 | | the Commission to meet the energy efficiency and |
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1 | | demand-response standards for 2008 through 2010. No later than |
2 | | October 1, 2010, each electric utility shall file an energy |
3 | | efficiency and demand-response plan with the Commission to meet |
4 | | the energy efficiency and demand-response standards for 2011 |
5 | | through 2013. Every 3 years thereafter, each electric utility |
6 | | shall file, no later than September 1, an energy efficiency and |
7 | | demand-response plan with the Commission. If a utility does not |
8 | | file such a plan by September 1 of an applicable year, it shall |
9 | | face a penalty of $100,000 per day until the plan is filed. |
10 | | Each utility's plan shall set forth the utility's proposals to |
11 | | meet the utility's portion of the energy efficiency standards |
12 | | identified in subsection (b) and the demand-response standards |
13 | | identified in subsection (c) of this Section as modified by |
14 | | subsections (d) and (e), taking into account the unique |
15 | | circumstances of the utility's service territory. The |
16 | | Commission shall seek public comment on the utility's plan and |
17 | | shall issue an order approving or disapproving each plan within |
18 | | 5 months after its submission. If the Commission disapproves a |
19 | | plan, the Commission shall, within 30 days, describe in detail |
20 | | the reasons for the disapproval and describe a path by which |
21 | | the utility may file a revised draft of the plan to address the |
22 | | Commission's concerns satisfactorily. If the utility does not |
23 | | refile with the Commission within 60 days, the utility shall be |
24 | | subject to penalties at a rate of $100,000 per day until the |
25 | | plan is filed. This process shall continue, and penalties shall |
26 | | accrue, until the utility has successfully filed a portfolio of |
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1 | | energy efficiency and demand-response measures. Penalties |
2 | | shall be deposited into the Energy Efficiency Trust Fund. In |
3 | | submitting proposed energy efficiency and demand-response |
4 | | plans and funding levels to meet the savings goals adopted by |
5 | | this Act the utility shall: |
6 | | (1) Demonstrate that its proposed energy efficiency |
7 | | and demand-response measures will achieve the requirements |
8 | | that are identified in subsections (b) and (c) of this |
9 | | Section, as modified by subsections (d) and (e). |
10 | | (2) Present specific proposals to implement new |
11 | | building and appliance standards that have been placed into |
12 | | effect. |
13 | | (3) Present estimates of the total amount paid for |
14 | | electric service expressed on a per kilowatthour basis |
15 | | associated with the proposed portfolio of measures |
16 | | designed to meet the requirements that are identified in |
17 | | subsections (b) and (c) of this Section, as modified by |
18 | | subsections (d) and (e). |
19 | | (4) Coordinate with the Department to present a |
20 | | portfolio of energy efficiency measures proportionate to |
21 | | the share of total annual utility revenues in Illinois from |
22 | | households at or below 150% of the poverty level. The |
23 | | energy efficiency programs shall be targeted to households |
24 | | with incomes at or below 80% of area median income. |
25 | | (5) Demonstrate that its overall portfolio of energy |
26 | | efficiency and demand-response measures, not including |
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1 | | programs covered by item (4) of this subsection (f), are |
2 | | cost-effective using the total resource cost test and |
3 | | represent a diverse cross-section of opportunities for |
4 | | customers of all rate classes to participate in the |
5 | | programs. |
6 | | (6) Include a proposed cost-recovery tariff mechanism |
7 | | to fund the proposed energy efficiency and demand-response |
8 | | measures and to ensure the recovery of the prudently and |
9 | | reasonably incurred costs of Commission-approved programs. |
10 | | (7) Provide for an annual independent evaluation of the |
11 | | performance of the cost-effectiveness of the utility's |
12 | | portfolio of measures and the Department's portfolio of |
13 | | measures, as well as a full review of the 3-year results of |
14 | | the broader net program impacts and, to the extent |
15 | | practical, for adjustment of the measures on a |
16 | | going-forward basis as a result of the evaluations. The |
17 | | resources dedicated to evaluation shall not exceed 3% of |
18 | | portfolio resources in any given year. |
19 | | (g) No more than 3% of energy efficiency and |
20 | | demand-response program revenue may be allocated for |
21 | | demonstration of breakthrough equipment and devices. |
22 | | (h) This Section does not apply to an electric utility that |
23 | | on December 31, 2005 provided electric service to fewer than |
24 | | 100,000 customers in Illinois. |
25 | | (i) If, after 2 years, an electric utility fails to meet |
26 | | the efficiency standard specified in subsection (b) of this |
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1 | | Section, as modified by subsections (d) and (e), it shall make |
2 | | a contribution to the Low-Income Home Energy Assistance |
3 | | Program. The combined total liability for failure to meet the |
4 | | goal shall be $1,000,000, which shall be assessed as follows: a |
5 | | large electric utility shall pay $665,000, and a medium |
6 | | electric utility shall pay $335,000. If, after 3 years, an |
7 | | electric utility fails to meet the efficiency standard |
8 | | specified in subsection (b) of this Section, as modified by |
9 | | subsections (d) and (e), it shall make a contribution to the |
10 | | Low-Income Home Energy Assistance Program. The combined total |
11 | | liability for failure to meet the goal shall be $1,000,000, |
12 | | which shall be assessed as follows: a large electric utility |
13 | | shall pay $665,000, and a medium electric utility shall pay |
14 | | $335,000. In addition, the responsibility for implementing the |
15 | | energy efficiency measures of the utility making the payment |
16 | | shall be transferred to the Illinois Power Agency if, after 3 |
17 | | years, or in any subsequent 3-year period, the utility fails to |
18 | | meet the efficiency standard specified in subsection (b) of |
19 | | this Section, as modified by subsections (d) and (e). The |
20 | | Agency shall implement a competitive procurement program to |
21 | | procure resources necessary to meet the standards specified in |
22 | | this Section as modified by subsections (d) and (e), with costs |
23 | | for those resources to be recovered in the same manner as |
24 | | products purchased through the procurement plan as provided in |
25 | | Section 16-111.5. The Director shall implement this |
26 | | requirement in connection with the procurement plan as provided |
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1 | | in Section 16-111.5. |
2 | | For purposes of this Section, (i) a "large electric |
3 | | utility" is an electric utility that, on December 31, 2005, |
4 | | served more than 2,000,000 electric customers in Illinois; (ii) |
5 | | a "medium electric utility" is an electric utility that, on |
6 | | December 31, 2005, served 2,000,000 or fewer but more than |
7 | | 100,000 electric customers in Illinois; and (iii) Illinois |
8 | | electric utilities that are affiliated by virtue of a common |
9 | | parent company are considered a single electric utility. |
10 | | (j) If, after 3 years, or any subsequent 3-year period, the |
11 | | Department fails to implement the Department's share of energy |
12 | | efficiency measures required by the standards in subsection |
13 | | (b), then the Illinois Power Agency may assume responsibility |
14 | | for and control of the Department's share of the required |
15 | | energy efficiency measures. The Agency shall implement a |
16 | | competitive procurement program to procure resources necessary |
17 | | to meet the standards specified in this Section, with the costs |
18 | | of these resources to be recovered in the same manner as |
19 | | provided for the Department in this Section.
|
20 | | (k) No electric utility shall be deemed to have failed to |
21 | | meet the energy efficiency standards to the extent any such |
22 | | failure is due to a failure of the Department or the Agency.
|
23 | | (l)(1) The energy efficiency and demand-response plans of |
24 | | electric utilities serving more than 500,000 retail customers |
25 | | in the State that were approved by the Commission on or before |
26 | | the effective date of this amendatory Act of the 99th General |
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1 | | Assembly for the period June 1, 2014 through May 31, 2017 shall |
2 | | continue to be in force and effect through December 31, 2017 so |
3 | | that the energy efficiency programs set forth in those plans |
4 | | continue to be offered during the period June 1, 2017 through |
5 | | December 31, 2017. Each such utility is authorized to increase, |
6 | | on a pro rata basis, the energy savings goals and budgets |
7 | | approved in its plan to reflect the additional 7 months of the |
8 | | plan's operation. |
9 | | (2) If an electric utility serving more than 500,000 |
10 | | retail customers in the State filed with the Commission, |
11 | | under subsection (f) of this Section, its proposed energy |
12 | | efficiency and demand-response plan for the period June 1, |
13 | | 2017 through May 31, 2020, and the Commission has not yet |
14 | | entered its final order approving such plan on or before |
15 | | the effective date of this amendatory Act of the 99th |
16 | | General Assembly, then the utility shall file a notice of |
17 | | withdrawal with the Commission, following such effective |
18 | | date, to withdraw the proposed energy efficiency and |
19 | | demand-response plan. Upon receipt of such notice, the |
20 | | Commission shall dismiss with prejudice any docket that had |
21 | | been initiated to investigate such plan, and the plan and |
22 | | the record related thereto shall not be the subject of any |
23 | | further hearing, investigation, or proceeding of any kind. |
24 | | (3) For those electric utilities that serve more than |
25 | | 500,000 retail customers in the State, this amendatory Act |
26 | | of the 99th General Assembly preempts and supersedes any |
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1 | | orders entered by the Commission that approved such |
2 | | utilities' energy efficiency and demand response plans for |
3 | | the period commencing June 1, 2017 and ending May 31, 2020. |
4 | | Any such orders shall be void, and the provisions of |
5 | | paragraph (1) of this subsection (l) shall apply. |
6 | | (Source: P.A. 97-616, eff. 10-26-11; 97-841, eff. 7-20-12; |
7 | | 98-90, eff. 7-15-13.)
|
8 | | (220 ILCS 5/8-103B new) |
9 | | Sec. 8-103B. Energy efficiency and demand-response |
10 | | measures. |
11 | | (a) It is the policy of the State that electric utilities |
12 | | are required to use cost-effective energy efficiency and |
13 | | demand-response measures to reduce delivery load. Requiring |
14 | | investment in cost-effective energy efficiency and |
15 | | demand-response measures will reduce direct and indirect costs |
16 | | to consumers by decreasing environmental impacts and by |
17 | | avoiding or delaying the need for new generation, transmission, |
18 | | and distribution infrastructure. It serves the public interest |
19 | | to allow electric utilities to recover costs for reasonably and |
20 | | prudently incurred expenditures for energy efficiency and |
21 | | demand-response measures. As used in this Section, |
22 | | "cost-effective" means that the measures satisfy the total |
23 | | resource cost test. The low-income measures described in |
24 | | subsection (c) of this Section and energy efficiency measures |
25 | | implemented under subsection (l) of this Section shall not be |
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1 | | required to meet the total resource cost test. For purposes of |
2 | | this Section, the terms "energy-efficiency", |
3 | | "demand-response", "electric utility", and "total resource |
4 | | cost test" have the meanings set forth in the Illinois Power |
5 | | Agency Act. For purposes of this Section, the amount per |
6 | | kilowatthour means the total amount paid for electric service |
7 | | expressed on a per kilowatthour basis. For purposes of this |
8 | | Section, the total amount paid for electric service includes, |
9 | | without limitation, estimated amounts paid for supply, |
10 | | transmission, distribution, surcharges, and add-on taxes. |
11 | | (a-5) This Section applies to electric utilities serving |
12 | | more than 500,000 retail customers in the State for those |
13 | | multi-year plans commencing after December 31, 2017. |
14 | | (b) For purposes of this Section, electric utilities |
15 | | subject to this Section that serve more than 3,000,000 retail |
16 | | customers in the State shall be deemed to have achieved a |
17 | | cumulative persisting annual savings of 6.6%, or 5,777,692 |
18 | | megawatt-hours (MWhs), from energy efficiency measures and |
19 | | programs implemented during the period beginning January 1, |
20 | | 2012 and ending December 31, 2017, which percent is based on |
21 | | the deemed average weather normalized sales of electric power |
22 | | and energy during calendar years 2014, 2015, and 2016 of |
23 | | 88,000,000 MWhs. The 88,000,000 MWhs of deemed electric power |
24 | | and energy sales shall also serve as the baseline value for |
25 | | calculating the cumulative persisting annual savings in |
26 | | subsection (b-5). After 2017, the deemed value of cumulative |
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1 | | persisting annual savings from energy efficiency measures and |
2 | | programs implemented during the period beginning January 1, |
3 | | 2012 and ending December 31, 2017, shall be reduced each year, |
4 | | as follows, and the applicable value shall be applied to and |
5 | | count toward the utility's achievement of the cumulative |
6 | | persisting annual savings goals set forth in subsection (b-5): |
7 | | (1) 5.8%, or 5,071,018 MWhs, deemed cumulative |
8 | | persisting annual savings for the year ending December 31, |
9 | | 2018; |
10 | | (2) 5.2%, or 4,553,371 MWhs, deemed cumulative |
11 | | persisting annual savings for the year ending December 31, |
12 | | 2019; |
13 | | (3) 4.5%, or 3,998,012 MWhs, deemed cumulative |
14 | | persisting annual savings for the year ending December 31, |
15 | | 2020; |
16 | | (4) 4.0%, or 3,533,219 MWhs, deemed cumulative |
17 | | persisting annual savings for the year ending December 31, |
18 | | 2021; |
19 | | (5) 3.5%, or 3,108,290 MWhs, deemed cumulative |
20 | | persisting annual savings for the year ending December 31, |
21 | | 2022; |
22 | | (6) 3.1%, or 2,738,689 MWhs, deemed cumulative |
23 | | persisting annual savings for the year ending December 31, |
24 | | 2023; |
25 | | (7) 2.8%, or 2,463,055 MWhs, deemed cumulative |
26 | | persisting annual savings for the year ending December 31, |
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1 | | 2024; |
2 | | (8) 2.5%, or 2,221,716 MWhs, deemed cumulative |
3 | | persisting annual savings for the year ending December 31, |
4 | | 2025; |
5 | | (9) 2.3%, or 2,017,109 MWhs, deemed cumulative |
6 | | persisting annual savings for the year ending December 31, |
7 | | 2026; |
8 | | (10) 2.1%, or 1,822,754 MWhs, deemed cumulative |
9 | | persisting annual savings for the year ending December 31, |
10 | | 2027; |
11 | | (11) 1.8%, or 1,624,769 MWhs, deemed cumulative |
12 | | persisting annual savings for the year ending December 31, |
13 | | 2028; |
14 | | (12) 1.7%, or 1,460,039 MWhs, deemed cumulative |
15 | | persisting annual savings for the year ending December 31, |
16 | | 2029; and |
17 | | (13) 1.5%, or 1,181,647 MWhs, deemed cumulative |
18 | | persisting annual savings for the year ending December 31, |
19 | | 2030. |
20 | | For purposes of this Section, "cumulative persisting |
21 | | annual savings" means the total electric energy savings in a |
22 | | given year from measures installed in that year or in previous |
23 | | years, but no earlier than January 1, 2012, that are still |
24 | | operational and providing savings in that year because the |
25 | | measures have not yet reached the end of their useful lives. |
26 | | (b-5) Beginning in 2018, electric utilities subject to this |
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1 | | Section that serve more than 3,000,000 retail customers in the |
2 | | State shall achieve the following cumulative persisting annual |
3 | | savings goals, as modified by subsection (f) of this Section |
4 | | and as compared to the deemed baseline of 88,000,000 MWhs of |
5 | | electric power and energy sales set forth in subsection (b), as |
6 | | reduced by the number of MWhs equal to the sum of the annual |
7 | | consumption of all Self-Direct Customers that elect such status |
8 | | under subsection (l) of this Section as averaged across the |
9 | | calendar years 2014, 2015, and 2016, through the implementation |
10 | | of energy efficiency measures during the applicable year and in |
11 | | prior years, but no earlier than January 1, 2012: |
12 | | (1) 7.8% cumulative persisting annual savings for the |
13 | | year ending December 31, 2018; |
14 | | (2) 9.1% cumulative persisting annual savings for the |
15 | | year ending December 31, 2019; |
16 | | (3) 10.4% cumulative persisting annual savings for the |
17 | | year ending December 31, 2020; |
18 | | (4) 11.8% cumulative persisting annual savings for the |
19 | | year ending December 31, 2021; |
20 | | (5) 13.1% cumulative persisting annual savings for the |
21 | | year ending December 31, 2022; |
22 | | (6) 14.4% cumulative persisting annual savings for the |
23 | | year ending December 31, 2023; |
24 | | (7) 15.7% cumulative persisting annual savings for the |
25 | | year ending December 31, 2024; |
26 | | (8) 17% cumulative persisting annual savings for the |
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1 | | year ending December 31, 2025; |
2 | | (9) 17.9% cumulative persisting annual savings for the |
3 | | year ending December 31, 2026; |
4 | | (10) 18.8% cumulative persisting annual savings for |
5 | | the year ending December 31, 2027; |
6 | | (11) 19.7% cumulative persisting annual savings for |
7 | | the year ending December 31, 2028; |
8 | | (12) 20.6% cumulative persisting annual savings for |
9 | | the year ending December 31, 2029; and |
10 | | (13) 21.5% cumulative persisting annual savings for |
11 | | the year ending December 31, 2030. |
12 | | (b-10) For purposes of this Section, electric utilities |
13 | | subject to this Section that serve less than 3,000,000 retail |
14 | | customers but more than 500,000 retail customers in the State |
15 | | shall be deemed to have achieved a cumulative persisting annual |
16 | | savings of 6.6%, or 2,435,400 MWhs, from energy efficiency |
17 | | measures and programs implemented during the period beginning |
18 | | January 1, 2012 and ending December 31, 2017, which is based on |
19 | | the deemed average weather normalized sales of electric power |
20 | | and energy during calendar years 2014, 2015, and 2016 of |
21 | | 36,900,000 MWhs. The 36,900,000 MWhs of deemed electric power |
22 | | and energy sales shall also serve as the baseline value for |
23 | | calculating the cumulative persisting annual savings in |
24 | | subsection (b-15). After 2017, the deemed value of cumulative |
25 | | persisting annual savings from energy efficiency measures and |
26 | | programs implemented during the period beginning January 1, |
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1 | | 2012 and ending December 31, 2017, shall be reduced each year, |
2 | | as follows, and the applicable value shall be applied to and |
3 | | count toward the utility's achievement of the cumulative |
4 | | persisting annual savings goals set forth in subsection (b-15): |
5 | | (1) 5.8%, or 2,140,200 MWhs, deemed cumulative |
6 | | persisting annual savings for the year ending December 31, |
7 | | 2018; |
8 | | (2) 5.2%, or 1,918,800 MWhs, deemed cumulative |
9 | | persisting annual savings for the year ending December 31, |
10 | | 2019; |
11 | | (3) 4.5%, or 1,660,500 MWhs, deemed cumulative |
12 | | persisting annual savings for the year ending December 31, |
13 | | 2020; |
14 | | (4) 4.0%, or 1,476,000 MWhs, deemed cumulative |
15 | | persisting annual savings for the year ending December 31, |
16 | | 2021; |
17 | | (5) 3.5%, or 1,291,500 MWhs, deemed cumulative |
18 | | persisting annual savings for the year ending December 31, |
19 | | 2022; |
20 | | (6) 3.1%, or 1,143,900 MWhs, deemed cumulative |
21 | | persisting annual savings for the year ending December 31, |
22 | | 2023; |
23 | | (7) 2.8%, or 1,033,200 MWhs, deemed cumulative |
24 | | persisting annual savings for the year ending December 31, |
25 | | 2024; |
26 | | (8) 2.5%, or 922,500 MWhs, deemed cumulative |
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1 | | persisting annual savings for the year ending December 31, |
2 | | 2025; |
3 | | (9) 2.3%, or 848,700 MWhs, deemed cumulative |
4 | | persisting annual savings for the year ending December 31, |
5 | | 2026; |
6 | | (10) 2.1%, or 774,900 MWhs, deemed cumulative |
7 | | persisting annual savings for the year ending December 31, |
8 | | 2027; |
9 | | (11) 1.8%, or 664,200 MWhs, deemed cumulative |
10 | | persisting annual savings for the year ending December 31, |
11 | | 2028; |
12 | | (12) 1.7%, or 627,300 MWhs, deemed cumulative |
13 | | persisting annual savings for the year ending December 31, |
14 | | 2029; and |
15 | | (13) 1.5%, or 553,500 MWhs, deemed cumulative |
16 | | persisting annual savings for the year ending December 31, |
17 | | 2030. |
18 | | (b-15) Beginning in 2018, electric utilities subject to |
19 | | this Section that serve less than 3,000,000 retail customers |
20 | | but more than 500,000 retail customers in the State shall |
21 | | achieve the following cumulative persisting annual savings |
22 | | goals, as modified by subsection (b-20) and subsection (f) of |
23 | | this Section and as compared to the deemed baseline as reduced |
24 | | by the number of MWhs equal to the sum of the annual |
25 | | consumption of all Self-Direct Customers that elect such status |
26 | | under subsection (l) of this Section as averaged across the |
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1 | | calendar years 2014, 2015, and 2016, through the implementation |
2 | | of energy efficiency measures during the applicable year and in |
3 | | prior years, but no earlier than January 1, 2012: |
4 | | (1) 7.4% cumulative persisting annual savings for the |
5 | | year ending December 31, 2018; |
6 | | (2) 8.2% cumulative persisting annual savings for the |
7 | | year ending December 31, 2019; |
8 | | (3) 9.0% cumulative persisting annual savings for the |
9 | | year ending December 31, 2020; |
10 | | (4) 9.8% cumulative persisting annual savings for the |
11 | | year ending December 31, 2021; |
12 | | (5) 10.6% cumulative persisting annual savings for the |
13 | | year ending December 31, 2022; |
14 | | (6) 11.4% cumulative persisting annual savings for the |
15 | | year ending December 31, 2023; |
16 | | (7) 12.2% cumulative persisting annual savings for the |
17 | | year ending December 31, 2024; |
18 | | (8) 13% cumulative persisting annual savings for the |
19 | | year ending December 31, 2025; |
20 | | (9) 13.6% cumulative persisting annual savings for the |
21 | | year ending December 31, 2026; |
22 | | (10) 14.2% cumulative persisting annual savings for |
23 | | the year ending December 31, 2027; |
24 | | (11) 14.8% cumulative persisting annual savings for |
25 | | the year ending December 31, 2028; |
26 | | (12) 15.4% cumulative persisting annual savings for |
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1 | | the year ending December 31, 2029; and |
2 | | (13) 16% cumulative persisting annual savings for the |
3 | | year ending December 31, 2030. |
4 | | The difference between the cumulative persisting annual |
5 | | savings goal for the applicable calendar year and the |
6 | | cumulative persisting annual savings goal for the immediately |
7 | | preceding calendar year is 0.8% for the period of January 1, |
8 | | 2018 through December 31, 2025 and 0.6% for the period of |
9 | | January 1, 2026 through December 31, 2030. |
10 | | (b-20) Each electric utility subject to this Section may |
11 | | include cost-effective voltage optimization measures in its |
12 | | plans submitted under subsections (f) and (g) of this Section, |
13 | | and the costs incurred by a utility to implement the measures |
14 | | under a Commission-approved plan shall be recovered under the |
15 | | provisions of Article IX or Section 16-108.5 of this Act. For |
16 | | purposes of this Section, the measure life of voltage |
17 | | optimization measures shall be 15 years. The measure life |
18 | | period is independent of the depreciation rate of the voltage |
19 | | optimization assets deployed. |
20 | | Within 270 days after the effective date of this amendatory |
21 | | Act of the 99th General Assembly, an electric utility that |
22 | | serves less than 3,000,000 retail customers but more than |
23 | | 500,000 retail customers in the State shall file a plan with |
24 | | the Commission that identifies the cost-effective voltage |
25 | | optimization investment the electric utility plans to |
26 | | undertake through December 31, 2024. The Commission, after |
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1 | | notice and hearing, shall approve or approve with modification |
2 | | the plan within 120 days after the plan's filing and, in the |
3 | | order approving or approving with modification the plan, the |
4 | | Commission shall adjust the applicable cumulative persisting |
5 | | annual savings goals set forth in subsection (b-15) to reflect |
6 | | any amount of cost-effective energy savings approved by the |
7 | | Commission that is greater than or less than the following |
8 | | cumulative persisting annual savings values attributable to |
9 | | voltage optimization for the applicable year: |
10 | | (1) 0.0% of cumulative persisting annual savings for |
11 | | the year ending December 31, 2018; |
12 | | (2) 0.17% of cumulative persisting annual savings for |
13 | | the year ending December 31, 2019; |
14 | | (3) 0.17% of cumulative persisting annual savings for |
15 | | the year ending December 31, 2020; |
16 | | (4) 0.33% of cumulative persisting annual savings for |
17 | | the year ending December 31, 2021; |
18 | | (5) 0.5% of cumulative persisting annual savings for |
19 | | the year ending December 31, 2022; |
20 | | (6) 0.67% of cumulative persisting annual savings for |
21 | | the year ending December 31, 2023; |
22 | | (7) 0.83% of cumulative persisting annual savings for |
23 | | the year ending December 31, 2024; and |
24 | | (8) 1.0% of cumulative persisting annual savings for |
25 | | the year ending December 31, 2025. |
26 | | (b-25) In the event an electric utility jointly offers an |
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1 | | energy efficiency measure or program with a gas utility under |
2 | | plans approved under this Section and Section 8-104 of this |
3 | | Act, the electric utility may continue offering the program, |
4 | | including the gas energy efficiency measures, in the event the |
5 | | gas utility discontinues funding the program. In that event, |
6 | | the energy savings value associated with such other fuels shall |
7 | | be converted to electric energy savings on an equivalent Btu |
8 | | basis for the premises. However, the electric utility shall |
9 | | prioritize programs for low-income residential customers to |
10 | | the extent practicable. An electric utility may recover the |
11 | | costs of offering the gas energy efficiency measures under this |
12 | | subsection (b-25). |
13 | | For those energy efficiency measures or programs that save |
14 | | both electricity and other fuels but are not jointly offered |
15 | | with a gas utility under plans approved under this Section and |
16 | | Section 8-104 or not offered with an affiliated gas utility |
17 | | under paragraph (6) of subsection (f) of Section 8-104 of this |
18 | | Act, the electric utility may count savings of fuels other than |
19 | | electricity toward the achievement of its annual savings goal, |
20 | | and the energy savings value associated with such other fuels |
21 | | shall be converted to electric energy savings on an equivalent |
22 | | Btu basis at the premises. |
23 | | In no event shall more than 10% of each year's applicable |
24 | | annual incremental goal as defined in paragraph (7) of |
25 | | subsection (g) of this Section be met through savings of fuels |
26 | | other than electricity. |
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1 | | (c) Electric utilities shall be responsible for overseeing |
2 | | the design, development, and filing of energy efficiency plans |
3 | | with the Commission and may, as part of that implementation, |
4 | | outsource various aspects of program development and |
5 | | implementation. A minimum of 10%, for electric utilities that |
6 | | serve more than 3,000,000 retail customers in the State, and a |
7 | | minimum of 7%, for electric utilities that serve less than |
8 | | 3,000,000 retail customers more than 500,000 retail customers |
9 | | in the State, of the utility's entire portfolio funding level |
10 | | for a given year shall be used to procure cost-effective energy |
11 | | efficiency measures from units of local government, municipal |
12 | | corporations, school districts, public housing, and community |
13 | | college districts, provided that a minimum percentage of |
14 | | available funds shall be used to procure energy efficiency from |
15 | | public housing, which percentage shall be equal to public |
16 | | housing's share of public building energy consumption. |
17 | | The utilities shall also implement energy efficiency |
18 | | measures targeted at low-income households, which, for |
19 | | purposes of this Section, shall be defined as households at or |
20 | | below 80% of area median income, and expenditures to implement |
21 | | the measures shall be no less than $25,000,000 per year for |
22 | | electric utilities that serve more than 3,000,000 retail |
23 | | customers in the State and no less than $8,350,000 per year for |
24 | | electric utilities that serve less than 3,000,000 retail |
25 | | customers but more than 500,000 retail customers in the State. |
26 | | Each electric utility shall assess opportunities to |
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1 | | implement cost-effective energy efficiency measures and |
2 | | programs through a public housing authority or authorities |
3 | | located in its service territory. If such opportunities are |
4 | | identified, the utility shall propose such measures and |
5 | | programs to address the opportunities. Expenditures to address |
6 | | such opportunities shall be credited toward the minimum |
7 | | procurement and expenditure requirements set forth in this |
8 | | subsection (c). |
9 | | Implementation of energy efficiency measures and programs |
10 | | targeted at low-income households should be contracted, when it |
11 | | is practicable, to independent third parties that have |
12 | | demonstrated capabilities to serve such households, with a |
13 | | preference for not-for-profit entities and government agencies |
14 | | that have existing relationships with or experience serving |
15 | | low-income communities in the State. |
16 | | Each electric utility shall develop and implement |
17 | | reporting procedures that address and assist in determining the |
18 | | amount of energy savings that can be applied to the low-income |
19 | | procurement and expenditure requirements set forth in this |
20 | | subsection (c). |
21 | | The electric utilities shall also convene a low-income |
22 | | energy efficiency advisory committee to assist in the design |
23 | | and evaluation of the low-income energy efficiency programs. |
24 | | The committee shall be comprised of the electric utilities |
25 | | subject to the requirements of this Section, the gas utilities |
26 | | subject to the requirements of Section 8-104 of this Act, the |
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1 | | utilities' low-income energy efficiency implementation |
2 | | contractors, and representatives of community-based |
3 | | organizations. |
4 | | (d) Notwithstanding any other provision of law to the |
5 | | contrary, a utility providing approved energy efficiency |
6 | | measures and, if applicable, demand-response measures in the |
7 | | State shall be permitted to recover all reasonable and |
8 | | prudently incurred costs of those measures from all retail |
9 | | customers, except as provided in subsection (l) of this |
10 | | Section, as follows, provided that nothing in this subsection |
11 | | (d) permits the double recovery of such costs from customers: |
12 | | (1) The utility may recover its costs through an |
13 | | automatic adjustment clause tariff filed with and approved |
14 | | by the Commission. The tariff shall be established outside |
15 | | the context of a general rate case. Each year the |
16 | | Commission shall initiate a review to reconcile any amounts |
17 | | collected with the actual costs and to determine the |
18 | | required adjustment to the annual tariff factor to match |
19 | | annual expenditures. To enable the financing of the |
20 | | incremental capital expenditures, including regulatory |
21 | | assets, for electric utilities that serve less than |
22 | | 3,000,000 retail customers but more than 500,000 retail |
23 | | customers in the State, the utility's actual year-end |
24 | | capital structure that includes a common equity ratio, |
25 | | excluding goodwill, of up to and including 50% of the total |
26 | | capital structure shall be deemed reasonable and used to |
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1 | | set rates. |
2 | | (2) A utility may recover its costs through an energy |
3 | | efficiency formula rate approved by the Commission under a |
4 | | filing under subsections (f) and (g) of this Section, which |
5 | | shall specify the cost components that form the basis of |
6 | | the rate charged to customers with sufficient specificity |
7 | | to operate in a standardized manner and be updated annually |
8 | | with transparent information that reflects the utility's |
9 | | actual costs to be recovered during the applicable rate |
10 | | year, which is the period beginning with the first billing |
11 | | day of January and extending through the last billing day |
12 | | of the following December. The energy efficiency formula |
13 | | rate shall be implemented through a tariff filed with the |
14 | | Commission under subsections (f) and (g) of this Section |
15 | | that is consistent with the provisions of this paragraph |
16 | | (2) and that shall be applicable to all delivery services |
17 | | customers. The Commission shall conduct an investigation |
18 | | of the tariff in a manner consistent with the provisions of |
19 | | this paragraph (2), subsections (f) and (g) of this |
20 | | Section, and the provisions of Article IX of this Act to |
21 | | the extent they do not conflict with this paragraph (2). |
22 | | The energy efficiency formula rate approved by the |
23 | | Commission shall remain in effect at the discretion of the |
24 | | utility and shall do the following: |
25 | | (A) Provide for the recovery of the utility's |
26 | | actual costs incurred under this Section that are |
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1 | | prudently incurred and reasonable in amount consistent |
2 | | with Commission practice and law. The sole fact that a |
3 | | cost differs from that incurred in a prior calendar |
4 | | year or that an investment is different from that made |
5 | | in a prior calendar year shall not imply the imprudence |
6 | | or unreasonableness of that cost or investment. |
7 | | (B) Reflect the utility's actual year-end capital |
8 | | structure for the applicable calendar year, excluding |
9 | | goodwill, subject to a determination of prudence and |
10 | | reasonableness consistent with Commission practice and |
11 | | law. To enable the financing of the incremental capital |
12 | | expenditures, including regulatory assets, for |
13 | | electric utilities that serve less than 3,000,000 |
14 | | retail customers but more than 500,000 retail |
15 | | customers in the State, a participating electric |
16 | | utility's actual year-end capital structure that |
17 | | includes a common equity ratio, excluding goodwill, of |
18 | | up to and including 50% of the total capital structure |
19 | | shall be deemed reasonable and used to set rates. |
20 | | (C) Include a cost of equity, which shall be |
21 | | calculated as the sum of the following: |
22 | | (i) the average for the applicable calendar |
23 | | year of the monthly average yields of 30-year U.S. |
24 | | Treasury bonds published by the Board of Governors |
25 | | of the Federal Reserve System in its weekly H.15 |
26 | | Statistical Release or successor publication; and |
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1 | | (ii) 580 basis points. |
2 | | At such time as the Board of Governors of the |
3 | | Federal Reserve System ceases to include the monthly |
4 | | average yields of 30-year U.S. Treasury bonds in its |
5 | | weekly H.15 Statistical Release or successor |
6 | | publication, the monthly average yields of the U.S. |
7 | | Treasury bonds then having the longest duration |
8 | | published by the Board of Governors in its weekly H.15 |
9 | | Statistical Release or successor publication shall |
10 | | instead be used for purposes of this paragraph (2). |
11 | | (D) Permit and set forth protocols, subject to a |
12 | | determination of prudence and reasonableness |
13 | | consistent with Commission practice and law, for the |
14 | | following: |
15 | | (i) recovery of incentive compensation expense |
16 | | that is based on the achievement of operational |
17 | | metrics, including metrics related to budget |
18 | | controls, outage duration and frequency, safety, |
19 | | customer service, efficiency and productivity, and |
20 | | environmental compliance; however, this protocol |
21 | | shall not apply if such expense related to costs |
22 | | incurred under this Section is recovered under |
23 | | Article IX or Section 16-108.5 of this Act; |
24 | | incentive compensation expense that is based on |
25 | | net income or an affiliate's earnings per share |
26 | | shall not be recoverable under the
energy |
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1 | | efficiency formula rate; |
2 | | (ii) recovery of pension and other |
3 | | post-employment benefits expense, provided that |
4 | | such costs are supported by an actuarial study; |
5 | | however, this protocol shall not apply if such |
6 | | expense related to costs incurred under this |
7 | | Section is recovered under Article IX or Section |
8 | | 16-108.5 of this Act; |
9 | | (iii) recovery of existing regulatory assets |
10 | | over the periods previously authorized by the |
11 | | Commission; |
12 | | (iv) as described in subsection (e), |
13 | | amortization of costs incurred under this Section; |
14 | | and |
15 | | (v) projected, weather normalized billing |
16 | | determinants for the applicable rate year. |
17 | | (E) Provide for an annual reconciliation, as |
18 | | described in paragraph (3) of this subsection (d), less |
19 | | any deferred taxes related to the reconciliation, with |
20 | | interest at an annual rate of return equal to the |
21 | | utility's weighted average cost of capital, including |
22 | | a revenue conversion factor calculated to recover or |
23 | | refund all additional income taxes that may be payable |
24 | | or receivable as a result of that return, of the energy |
25 | | efficiency revenue requirement reflected in rates for |
26 | | each calendar year, beginning with the calendar year in |
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1 | | which the utility files its energy efficiency formula |
2 | | rate tariff under this paragraph (2), with what the |
3 | | revenue requirement would have been had the actual cost |
4 | | information for the applicable calendar year been |
5 | | available at the filing date. |
6 | | The utility shall file, together with its tariff, the |
7 | | projected costs to be incurred by the utility during the |
8 | | rate year under the utility's multi-year plan approved |
9 | | under subsections (f) and (g) of this Section, including, |
10 | | but not limited to, the projected capital investment costs |
11 | | and projected regulatory asset balances with |
12 | | correspondingly updated depreciation and amortization |
13 | | reserves and expense, that shall populate the energy |
14 | | efficiency formula rate and set the initial rates under the |
15 | | formula. |
16 | | The Commission shall review the proposed tariff in |
17 | | conjunction with its review of a proposed multi-year plan, |
18 | | as specified in paragraph (5) of subsection (g) of this |
19 | | Section. The review shall be based on the same evidentiary |
20 | | standards, including, but not limited to, those concerning |
21 | | the prudence and reasonableness of the costs incurred by |
22 | | the utility, the Commission applies in a hearing to review |
23 | | a filing for a general increase in rates under Article IX |
24 | | of this Act. The ini |