Rep. Robert Rita

Filed: 11/28/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2814

2    AMENDMENT NO. ______. Amend Senate Bill 2814, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Findings.
6    (a) In 2011, the General Assembly encouraged and enabled
7the State's largest electric utilities to undertake
8substantial investment to refurbish, rebuild, modernize, and
9expand Illinois' century-old electric grid. Among those
10investments were the deployment of a smart grid and advanced
11metering infrastructure platform that would be accessible to
12all retail customers through new, digital smart meters. This
13investment, now well underway, not only allows utilities to
14continue to provide safe, reliable, and affordable service to
15the State's current and future utility customers, but also
16empowers the citizens of this State to directly access and
17participate in the rapidly emerging clean energy economy while

 

 

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1also presenting them with unprecedented choices in their source
2of energy supply and pricing.
3    To ensure that the State and its citizens, including
4low-income citizens, are equipped to enjoy the opportunities
5and benefits of the smart grid and evolving clean energy
6marketplace, the General Assembly finds and declares that
7Illinois should continue in its efforts to build the grid of
8the future using the smart grid and advanced metering
9infrastructure platform, as well as maximize the impact of the
10State's existing energy efficiency and renewable energy
11portfolio standards. Specifically, the Generally Assembly
12finds that:
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;
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
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.
12    (b) The General Assembly further finds that the expansion
13of distributed generation technologies and devices across the
14State necessarily disrupts existing electricity generation and
15distribution models and frameworks, including related rate and
16tariff schedules, which can lead to inequitable charges,
17especially for low-income customers who often encounter the
18most substantial obstacles to adopting costly distributed
19generation technologies and devices. As a result, the General
20Assembly finds that low-income customers should be included
21within the State's efforts to expand the use of distributed
22generation technologies and devices. To address these issues,
23electric utilities should also be permitted to file revised
24tariffs. These changes should be designed to ensure both an
25equitable allocation of costs so that no customers have to pay
26more than their fair share of these costs and that all costs

 

 

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1are recovered, thus ensuring better and more equitable access
2to distributed generation and other energy options.
 
3    Section 1.5. Zero emission standard legislative findings.
4The General Assembly finds and declares:
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.
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.
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.
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.
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.
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.
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.
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.
13    The General Assembly further finds that the Social Cost of
14Carbon is an appropriate valuation of the environmental
15benefits provided by zero emission facilities, provided that
16the valuation is subject to a price adjustment that can reduce
17the price for zero emission credits below the Social Cost of
18Carbon. This will ensure that the procurement of zero emission
19credits remains affordable for retail customers even if energy
20and capacity prices are projected to rise above 2016 levels
21reflected in the baseline market price index.
22    The General Assembly therefore finds that it is necessary
23to establish and implement a zero emission standard, which will
24increase the State's reliance on zero emission energy through
25the procurement of zero emission credits from zero emission
26facilities, in order to achieve the State's environmental

 

 

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1objectives and reduce the adverse impact of emitted air
2pollutants on the health and welfare of the State's citizens.
 
3    Section 3. The Illinois Administrative Procedure Act is
4amended 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
8any agency finds reasonably constitutes a threat to the public
9interest, safety, or welfare.
10    (b) If any agency finds that an emergency exists that
11requires adoption of a rule upon fewer days than is required by
12Section 5-40 and states in writing its reasons for that
13finding, the agency may adopt an emergency rule without prior
14notice or hearing upon filing a notice of emergency rulemaking
15with the Secretary of State under Section 5-70. The notice
16shall include the text of the emergency rule and shall be
17published in the Illinois Register. Consent orders or other
18court orders adopting settlements negotiated by an agency may
19be adopted under this Section. Subject to applicable
20constitutional or statutory provisions, an emergency rule
21becomes effective immediately upon filing under Section 5-65 or
22at a stated date less than 10 days thereafter. The agency's
23finding and a statement of the specific reasons for the finding
24shall be filed with the rule. The agency shall take reasonable

 

 

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1and appropriate measures to make emergency rules known to the
2persons who may be affected by them.
3    (c) An emergency rule may be effective for a period of not
4longer than 150 days, but the agency's authority to adopt an
5identical rule under Section 5-40 is not precluded. No
6emergency rule may be adopted more than once in any 24-month 24
7month period, except that this limitation on the number of
8emergency rules that may be adopted in a 24-month 24 month
9period does not apply to (i) emergency rules that make
10additions to and deletions from the Drug Manual under Section
115-5.16 of the Illinois Public Aid Code or the generic drug
12formulary under Section 3.14 of the Illinois Food, Drug and
13Cosmetic Act, (ii) emergency rules adopted by the Pollution
14Control Board before July 1, 1997 to implement portions of the
15Livestock Management Facilities Act, (iii) emergency rules
16adopted by the Illinois Department of Public Health under
17subsections (a) through (i) of Section 2 of the Department of
18Public Health Act when necessary to protect the public's
19health, (iv) emergency rules adopted pursuant to subsection (n)
20of this Section, (v) emergency rules adopted pursuant to
21subsection (o) of this Section, or (vi) emergency rules adopted
22pursuant to subsection (c-5) of this Section. Two or more
23emergency rules having substantially the same purpose and
24effect shall be deemed to be a single rule for purposes of this
25Section.
26    (c-5) To facilitate the maintenance of the program of group

 

 

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1health benefits provided to annuitants, survivors, and retired
2employees under the State Employees Group Insurance Act of
31971, rules to alter the contributions to be paid by the State,
4annuitants, survivors, retired employees, or any combination
5of those entities, for that program of group health benefits,
6shall be adopted as emergency rules. The adoption of those
7rules shall be considered an emergency and necessary for the
8public interest, safety, and welfare.
9    (d) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 1999 budget,
11emergency rules to implement any provision of Public Act 90-587
12or 90-588 or any other budget initiative for fiscal year 1999
13may be adopted in accordance with this Section by the agency
14charged with administering that provision or initiative,
15except that the 24-month limitation on the adoption of
16emergency rules and the provisions of Sections 5-115 and 5-125
17do not apply to rules adopted under this subsection (d). The
18adoption of emergency rules authorized by this subsection (d)
19shall be deemed to be necessary for the public interest,
20safety, and welfare.
21    (e) In order to provide for the expeditious and timely
22implementation of the State's fiscal year 2000 budget,
23emergency rules to implement any provision of Public Act 91-24
24or any other budget initiative for fiscal year 2000 may be
25adopted in accordance with this Section by the agency charged
26with administering that provision or initiative, except that

 

 

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1the 24-month limitation on the adoption of emergency rules and
2the provisions of Sections 5-115 and 5-125 do not apply to
3rules adopted under this subsection (e). The adoption of
4emergency rules authorized by this subsection (e) shall be
5deemed to be necessary for the public interest, safety, and
6welfare.
7    (f) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 2001 budget,
9emergency rules to implement any provision of Public Act 91-712
10or any other budget initiative for fiscal year 2001 may be
11adopted in accordance with this Section by the agency charged
12with administering that provision or initiative, except that
13the 24-month limitation on the adoption of emergency rules and
14the provisions of Sections 5-115 and 5-125 do not apply to
15rules adopted under this subsection (f). The adoption of
16emergency rules authorized by this subsection (f) shall be
17deemed to be necessary for the public interest, safety, and
18welfare.
19    (g) In order to provide for the expeditious and timely
20implementation of the State's fiscal year 2002 budget,
21emergency rules to implement any provision of Public Act 92-10
22or any other budget initiative for fiscal year 2002 may be
23adopted in accordance with this Section by the agency charged
24with administering that provision or initiative, except that
25the 24-month limitation on the adoption of emergency rules and
26the provisions of Sections 5-115 and 5-125 do not apply to

 

 

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1rules adopted under this subsection (g). The adoption of
2emergency rules authorized by this subsection (g) shall be
3deemed to be necessary for the public interest, safety, and
4welfare.
5    (h) In order to provide for the expeditious and timely
6implementation of the State's fiscal year 2003 budget,
7emergency rules to implement any provision of Public Act 92-597
8or any other budget initiative for fiscal year 2003 may be
9adopted in accordance with this Section by the agency charged
10with administering that provision or initiative, except that
11the 24-month limitation on the adoption of emergency rules and
12the provisions of Sections 5-115 and 5-125 do not apply to
13rules adopted under this subsection (h). The adoption of
14emergency rules authorized by this subsection (h) shall be
15deemed to be necessary for the public interest, safety, and
16welfare.
17    (i) In order to provide for the expeditious and timely
18implementation of the State's fiscal year 2004 budget,
19emergency rules to implement any provision of Public Act 93-20
20or any other budget initiative for fiscal year 2004 may be
21adopted in accordance with this Section by the agency charged
22with administering that provision or initiative, except that
23the 24-month limitation on the adoption of emergency rules and
24the provisions of Sections 5-115 and 5-125 do not apply to
25rules adopted under this subsection (i). The adoption of
26emergency rules authorized by this subsection (i) shall be

 

 

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1deemed to be necessary for the public interest, safety, and
2welfare.
3    (j) In order to provide for the expeditious and timely
4implementation of the provisions of the State's fiscal year
52005 budget as provided under the Fiscal Year 2005 Budget
6Implementation (Human Services) Act, emergency rules to
7implement any provision of the Fiscal Year 2005 Budget
8Implementation (Human Services) Act may be adopted in
9accordance with this Section by the agency charged with
10administering that provision, except that the 24-month
11limitation on the adoption of emergency rules and the
12provisions of Sections 5-115 and 5-125 do not apply to rules
13adopted under this subsection (j). The Department of Public Aid
14may also adopt rules under this subsection (j) necessary to
15administer the Illinois Public Aid Code and the Children's
16Health Insurance Program Act. The adoption of emergency rules
17authorized by this subsection (j) shall be deemed to be
18necessary for the public interest, safety, and welfare.
19    (k) In order to provide for the expeditious and timely
20implementation of the provisions of the State's fiscal year
212006 budget, emergency rules to implement any provision of
22Public Act 94-48 or any other budget initiative for fiscal year
232006 may be adopted in accordance with this Section by the
24agency charged with administering that provision or
25initiative, except that the 24-month limitation on the adoption
26of emergency rules and the provisions of Sections 5-115 and

 

 

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15-125 do not apply to rules adopted under this subsection (k).
2The Department of Healthcare and Family Services may also adopt
3rules under this subsection (k) necessary to administer the
4Illinois Public Aid Code, the Senior Citizens and Persons with
5Disabilities Property Tax Relief Act, the Senior Citizens and
6Disabled Persons Prescription Drug Discount Program Act (now
7the Illinois Prescription Drug Discount Program Act), and the
8Children's Health Insurance Program Act. The adoption of
9emergency rules authorized by this subsection (k) shall be
10deemed to be necessary for the public interest, safety, and
11welfare.
12    (l) In order to provide for the expeditious and timely
13implementation of the provisions of the State's fiscal year
142007 budget, the Department of Healthcare and Family Services
15may adopt emergency rules during fiscal year 2007, including
16rules effective July 1, 2007, in accordance with this
17subsection to the extent necessary to administer the
18Department's responsibilities with respect to amendments to
19the State plans and Illinois waivers approved by the federal
20Centers for Medicare and Medicaid Services necessitated by the
21requirements of Title XIX and Title XXI of the federal Social
22Security Act. The adoption of emergency rules authorized by
23this subsection (l) shall be deemed to be necessary for the
24public interest, safety, and welfare.
25    (m) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

 

 

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12008 budget, the Department of Healthcare and Family Services
2may adopt emergency rules during fiscal year 2008, including
3rules effective July 1, 2008, in accordance with this
4subsection to the extent necessary to administer the
5Department's responsibilities with respect to amendments to
6the State plans and Illinois waivers approved by the federal
7Centers for Medicare and Medicaid Services necessitated by the
8requirements of Title XIX and Title XXI of the federal Social
9Security Act. The adoption of emergency rules authorized by
10this subsection (m) shall be deemed to be necessary for the
11public interest, safety, and welfare.
12    (n) In order to provide for the expeditious and timely
13implementation of the provisions of the State's fiscal year
142010 budget, emergency rules to implement any provision of
15Public Act 96-45 or any other budget initiative authorized by
16the 96th General Assembly for fiscal year 2010 may be adopted
17in accordance with this Section by the agency charged with
18administering that provision or initiative. The adoption of
19emergency rules authorized by this subsection (n) shall be
20deemed to be necessary for the public interest, safety, and
21welfare. The rulemaking authority granted in this subsection
22(n) shall apply only to rules promulgated during Fiscal Year
232010.
24    (o) In order to provide for the expeditious and timely
25implementation of the provisions of the State's fiscal year
262011 budget, emergency rules to implement any provision of

 

 

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1Public Act 96-958 or any other budget initiative authorized by
2the 96th General Assembly for fiscal year 2011 may be adopted
3in accordance with this Section by the agency charged with
4administering that provision or initiative. The adoption of
5emergency rules authorized by this subsection (o) is deemed to
6be necessary for the public interest, safety, and welfare. The
7rulemaking authority granted in this subsection (o) applies
8only to rules promulgated on or after July 1, 2010 (the
9effective date of Public Act 96-958) through June 30, 2011.
10    (p) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 97-689,
12emergency rules to implement any provision of Public Act 97-689
13may be adopted in accordance with this subsection (p) by the
14agency charged with administering that provision or
15initiative. The 150-day limitation of the effective period of
16emergency rules does not apply to rules adopted under this
17subsection (p), and the effective period may continue through
18June 30, 2013. The 24-month limitation on the adoption of
19emergency rules does not apply to rules adopted under this
20subsection (p). The adoption of emergency rules authorized by
21this subsection (p) is deemed to be necessary for the public
22interest, safety, and welfare.
23    (q) In order to provide for the expeditious and timely
24implementation of the provisions of Articles 7, 8, 9, 11, and
2512 of Public Act 98-104, emergency rules to implement any
26provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104

 

 

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1may be adopted in accordance with this subsection (q) by the
2agency charged with administering that provision or
3initiative. The 24-month limitation on the adoption of
4emergency rules does not apply to rules adopted under this
5subsection (q). The adoption of emergency rules authorized by
6this subsection (q) is deemed to be necessary for the public
7interest, safety, and welfare.
8    (r) In order to provide for the expeditious and timely
9implementation of the provisions of Public Act 98-651,
10emergency rules to implement Public Act 98-651 may be adopted
11in accordance with this subsection (r) by the Department of
12Healthcare and Family Services. The 24-month limitation on the
13adoption of emergency rules does not apply to rules adopted
14under this subsection (r). The adoption of emergency rules
15authorized by this subsection (r) is deemed to be necessary for
16the public interest, safety, and welfare.
17    (s) In order to provide for the expeditious and timely
18implementation of the provisions of Sections 5-5b.1 and 5A-2 of
19the Illinois Public Aid Code, emergency rules to implement any
20provision of Section 5-5b.1 or Section 5A-2 of the Illinois
21Public Aid Code may be adopted in accordance with this
22subsection (s) by the Department of Healthcare and Family
23Services. The rulemaking authority granted in this subsection
24(s) shall apply only to those rules adopted prior to July 1,
252015. Notwithstanding any other provision of this Section, any
26emergency rule adopted under this subsection (s) shall only

 

 

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1apply to payments made for State fiscal year 2015. The adoption
2of emergency rules authorized by this subsection (s) is deemed
3to be necessary for the public interest, safety, and welfare.
4    (t) In order to provide for the expeditious and timely
5implementation of the provisions of Article II of Public Act
699-6, emergency rules to implement the changes made by Article
7II of Public Act 99-6 to the Emergency Telephone System Act may
8be adopted in accordance with this subsection (t) by the
9Department of State Police. The rulemaking authority granted in
10this subsection (t) shall apply only to those rules adopted
11prior to July 1, 2016. The 24-month limitation on the adoption
12of emergency rules does not apply to rules adopted under this
13subsection (t). The adoption of emergency rules authorized by
14this subsection (t) is deemed to be necessary for the public
15interest, safety, and welfare.
16    (u) In order to provide for the expeditious and timely
17implementation of the provisions of the Burn Victims Relief
18Act, emergency rules to implement any provision of the Act may
19be adopted in accordance with this subsection (u) by the
20Department of Insurance. The rulemaking authority granted in
21this subsection (u) shall apply only to those rules adopted
22prior to December 31, 2015. The adoption of emergency rules
23authorized by this subsection (u) is deemed to be necessary for
24the public interest, safety, and welfare.
25    (v) In order to provide for the expeditious and timely
26implementation of the provisions of Public Act 99-516 this

 

 

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1amendatory Act of the 99th General Assembly, emergency rules to
2implement Public Act 99-516 this amendatory Act of the 99th
3General Assembly may be adopted in accordance with this
4subsection (v) by the Department of Healthcare and Family
5Services. The 24-month limitation on the adoption of emergency
6rules does not apply to rules adopted under this subsection
7(v). The adoption of emergency rules authorized by this
8subsection (v) is deemed to be necessary for the public
9interest, safety, and welfare.
10    (w) (v) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 99-796 this
12amendatory Act of the 99th General Assembly, emergency rules to
13implement the changes made by Public Act 99-796 this amendatory
14Act of the 99th General Assembly may be adopted in accordance
15with this subsection (w) (v) by the Adjutant General. The
16adoption of emergency rules authorized by this subsection (w)
17(v) is deemed to be necessary for the public interest, safety,
18and welfare.
19    (x) In order to provide for the expeditious and timely
20implementation of the provisions of this amendatory Act of the
2199th General Assembly, emergency rules to implement subsection
22(i) of Section 16-115D of the Public Utilities Act may be
23adopted in accordance with this subsection (x) by the Illinois
24Commerce Commission. The rulemaking authority granted in this
25subsection (x) shall apply only to those rules adopted within
2630 days after the effective date of this amendatory Act of the

 

 

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199th General Assembly. The adoption of emergency rules
2authorized by this subsection (x) is deemed to be necessary for
3the public interest, safety, and welfare.
4(Source: P.A. 98-104, eff. 7-22-13; 98-463, eff. 8-16-13;
598-651, eff. 6-16-14; 99-2, eff. 3-26-15; 99-6, eff. 1-1-16;
699-143, eff. 7-27-15; 99-455, eff. 1-1-16; 99-516, eff.
76-30-16; 99-642, eff. 7-28-16; 99-796, eff. 1-1-17; revised
89-21-16.)
 
9    Section 5. The Illinois Power Agency Act is amended by
10changing Sections 1-5, 1-10, 1-20, 1-25, 1-56, and 1-75 as
11follows:
 
12    (20 ILCS 3855/1-5)
13    Sec. 1-5. Legislative declarations and findings. The
14General 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.

 

 

09900SB2814ham003- 22 -LRB099 19990 JWD 51755 a

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
5to create the Illinois Power Agency and that the goals and
6objectives of that Agency are to accomplish each of the
7following:
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;

 

 

09900SB2814ham003- 24 -LRB099 19990 JWD 51755 a

197-813, eff. 7-13-12.)
 
2    (20 ILCS 3855/1-10)
3    Sec. 1-10. Definitions.
4    "Agency" means the Illinois Power Agency.
5    "Agency loan agreement" means any agreement pursuant to
6which the Illinois Finance Authority agrees to loan the
7proceeds of revenue bonds issued with respect to a project to
8the Agency upon terms providing for loan repayment installments
9at least sufficient to pay when due all principal of, interest
10and premium, if any, on those revenue bonds, and providing for
11maintenance, insurance, and other matters in respect of the
12project.
13    "Authority" means the Illinois Finance Authority.
14    "Brownfield site photovoltaic project" means photovoltaics
15that 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
11facility that uses primarily coal as a feedstock and that
12captures and sequesters carbon dioxide emissions at the
13following levels: at least 50% of the total carbon dioxide
14emissions that the facility would otherwise emit if, at the
15time construction commences, the facility is scheduled to
16commence operation before 2016, at least 70% of the total
17carbon dioxide emissions that the facility would otherwise emit
18if, at the time construction commences, the facility is
19scheduled to commence operation during 2016 or 2017, and at
20least 90% of the total carbon dioxide emissions that the
21facility would otherwise emit if, at the time construction
22commences, the facility is scheduled to commence operation
23after 2017. The power block of the clean coal facility shall
24not exceed allowable emission rates for sulfur dioxide,
25nitrogen oxides, carbon monoxide, particulates and mercury for
26a natural gas-fired combined-cycle facility the same size as

 

 

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1and in the same location as the clean coal facility at the time
2the clean coal facility obtains an approved air permit. All
3coal used by a clean coal facility shall have high volatile
4bituminous rank and greater than 1.7 pounds of sulfur per
5million btu content, unless the clean coal facility does not
6use gasification technology and was operating as a conventional
7coal-fired electric generating facility on June 1, 2009 (the
8effective 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
11brownfield site in a municipality with at least 1,000,000
12residents; (2) uses a gasification process to produce
13substitute natural gas; (3) uses coal as at least 50% of the
14total feedstock over the term of any sourcing agreement with a
15utility and the remainder of the feedstock may be either
16petroleum coke or coal, with all such coal having a high
17bituminous rank and greater than 1.7 pounds of sulfur per
18million Btu content unless the facility reasonably determines
19that it is necessary to use additional petroleum coke to
20deliver additional consumer savings, in which case the facility
21shall use coal for at least 35% of the total feedstock over the
22term of any sourcing agreement; and (4) captures and sequesters
23at least 85% of the total carbon dioxide emissions that the
24facility would otherwise emit.
25    "Clean coal SNG facility" means a facility that uses a
26gasification process to produce substitute natural gas, that

 

 

09900SB2814ham003- 27 -LRB099 19990 JWD 51755 a

1sequesters at least 90% of the total carbon dioxide emissions
2that the facility would otherwise emit, that uses at least 90%
3coal as a feedstock, with all such coal having a high
4bituminous rank and greater than 1.7 pounds of sulfur per
5million btu content, and that has a valid and effective permit
6to construct emission sources and air pollution control
7equipment and approval with respect to the federal regulations
8for Prevention of Significant Deterioration of Air Quality
9(PSD) for the plant pursuant to the federal Clean Air Act;
10provided, however, a clean coal SNG brownfield facility shall
11not be a clean coal SNG facility.
12    "Commission" means the Illinois Commerce Commission.
13    "Community renewable generation project" means an electric
14generating 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
5construction 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

 

 

09900SB2814ham003- 29 -LRB099 19990 JWD 51755 a

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
5Section 16-102 of the Public Utilities Act.
6    "Delivery year" means the consecutive 12-month period
7beginning June 1 of a given year and ending May 31 of the
8following year.
9    "Department" means the Department of Commerce and Economic
10Opportunity.
11    "Director" means the Director of the Illinois Power Agency.
12    "Demand-response" means measures that decrease peak
13electricity demand or shift demand from peak to off-peak
14periods.
15    "Distributed renewable energy generation device" means a
16device 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
9of electricity or natural gas consumed in order required to
10achieve a given end use. "Energy efficiency" includes voltage
11optimization measures that optimize the voltage at points on
12the electric distribution voltage system and thereby reduce
13electricity consumption by electric customers' end use
14devices. "Energy efficiency" also includes measures that
15reduce the total Btus of electricity, and natural gas, and
16other fuels needed to meet the end use or uses.
17    "Electric utility" has the same definition as found in
18Section 16-102 of the Public Utilities Act.
19    "Facility" means an electric generating unit or a
20co-generating unit that produces electricity along with
21related equipment necessary to connect the facility to an
22electric transmission or distribution system.
23    "Governmental aggregator" means one or more units of local
24government that individually or collectively procure
25electricity to serve residential retail electrical loads
26located within its or their jurisdiction.

 

 

09900SB2814ham003- 31 -LRB099 19990 JWD 51755 a

1    "Local government" means a unit of local government as
2defined in Section 1 of Article VII of the Illinois
3Constitution.
4    "Municipality" means a city, village, or incorporated
5town.
6    "Municipal utility" means a public utility owned and
7operated by any subdivision or municipal corporation of this
8State.
9    "Nameplate capacity" means the aggregate inverter
10nameplate capacity in kilowatts AC.
11    "Person" means any natural person, firm, partnership,
12corporation, either domestic or foreign, company, association,
13limited liability company, joint stock company, or association
14and includes any trustee, receiver, assignee, or personal
15representative thereof.
16    "Project" means the planning, bidding, and construction of
17a facility.
18    "Public utility" has the same definition as found in
19Section 3-105 of the Public Utilities Act.
20    "Real property" means any interest in land together with
21all structures, fixtures, and improvements thereon, including
22lands under water and riparian rights, any easements,
23covenants, licenses, leases, rights-of-way, uses, and other
24interests, together with any liens, judgments, mortgages, or
25other claims or security interests related to real property.
26    "Renewable energy credit" means a tradable credit that

 

 

09900SB2814ham003- 32 -LRB099 19990 JWD 51755 a

1represents the environmental attributes of one megawatt hour a
2certain amount of energy produced from a renewable energy
3resource.
4    "Renewable energy resources" includes energy and its
5associated renewable energy credit or renewable energy credits
6from wind, solar thermal energy, photovoltaic cells and panels,
7biodiesel, anaerobic digestion, crops and untreated and
8unadulterated organic waste biomass, tree waste, and
9hydropower that does not involve new construction or
10significant expansion of hydropower dams, and other
11alternative sources of environmentally preferable energy. For
12purposes of this Act, landfill gas produced in the State is
13considered a renewable energy resource. "Renewable energy
14resources" does not include the incineration or burning of
15tires, garbage, general household, institutional, and
16commercial waste, industrial lunchroom or office waste,
17landscape waste other than tree waste, railroad crossties,
18utility poles, or construction or demolition debris, other than
19untreated and unadulterated waste wood.
20    "Retail customer" has the same definition as found in
21Section 16-102 of the Public Utilities Act.
22    "Revenue bond" means any bond, note, or other evidence of
23indebtedness issued by the Authority, the principal and
24interest of which is payable solely from revenues or income
25derived from any project or activity of the Agency.
26    "Sequester" means permanent storage of carbon dioxide by

 

 

09900SB2814ham003- 33 -LRB099 19990 JWD 51755 a

1injecting it into a saline aquifer, a depleted gas reservoir,
2or an oil reservoir, directly or through an enhanced oil
3recovery process that may involve intermediate storage,
4regardless of whether these activities are conducted by a clean
5coal facility, a clean coal SNG facility, a clean coal SNG
6brownfield facility, or a party with which a clean coal
7facility, clean coal SNG facility, or clean coal SNG brownfield
8facility has contracted for such purposes.
9    "Service area" has the same definition as found in Section
1016-102 of the Public Utilities Act.
11    "Sourcing agreement" means (i) in the case of an electric
12utility, an agreement between the owner of a clean coal
13facility and such electric utility, which agreement shall have
14terms and conditions meeting the requirements of paragraph (3)
15of subsection (d) of Section 1-75, (ii) in the case of an
16alternative retail electric supplier, an agreement between the
17owner of a clean coal facility and such alternative retail
18electric supplier, which agreement shall have terms and
19conditions meeting the requirements of Section 16-115(d)(5) of
20the Public Utilities Act, and (iii) in case of a gas utility,
21an agreement between the owner of a clean coal SNG brownfield
22facility and the gas utility, which agreement shall have the
23terms 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
26from an electric utility, and (ii) has a subscription of no

 

 

09900SB2814ham003- 34 -LRB099 19990 JWD 51755 a

1less than 200 watts to a community renewable generation project
2that is located in the electric utility's service area. No
3subscriber's subscriptions may total more than 40% of the
4nameplate capacity of an individual community renewable
5generation project. Entities that are affiliated by virtue of a
6common parent shall not represent multiple subscriptions that
7total more than 40% of the nameplate capacity of an individual
8community renewable generation project.
9    "Subscription" means an interest in a community renewable
10generation project expressed in kilowatts, which is sized
11primarily to offset part or all of the subscriber's electricity
12usage.
13    "Substitute natural gas" or "SNG" means a gas manufactured
14by gasification of hydrocarbon feedstock, which is
15substantially interchangeable in use and distribution with
16conventional natural gas.
17    "Total resource cost test" or "TRC test" means a standard
18that is met if, for an investment in energy efficiency or
19demand-response measures, the benefit-cost ratio is greater
20than one. The benefit-cost ratio is the ratio of the net
21present value of the total benefits of the program to the net
22present value of the total costs as calculated over the
23lifetime of the measures. A total resource cost test compares
24the sum of avoided electric utility costs, representing the
25benefits that accrue to the system and the participant in the
26delivery of those efficiency measures and including avoided

 

 

09900SB2814ham003- 35 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 36 -LRB099 19990 JWD 51755 a

1    kilowatts.
2    "Utility-scale wind project" means an electric generating
3facility 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
8represents the environmental attributes of one megawatt hour of
9energy produced from a zero emission facility.
10    "Zero emission facility" means a facility that: (1) is
11fueled by nuclear power; and (2) is interconnected with PJM
12Interconnection, LLC or the Midcontinent Independent System
13Operator, Inc., or their successors.
14(Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-491,
15eff. 8-22-11; 97-616, eff. 10-26-11; 97-813, eff. 7-13-12;
1698-90, eff. 7-15-13.)
 
17    (20 ILCS 3855/1-20)
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

 

 

09900SB2814ham003- 37 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 38 -LRB099 19990 JWD 51755 a

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
20all of the powers necessary or convenient to carry out the
21purposes and provisions of this Act, including without
22limitation, 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

 

 

09900SB2814ham003- 39 -LRB099 19990 JWD 51755 a

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,

 

 

09900SB2814ham003- 40 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 41 -LRB099 19990 JWD 51755 a

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.
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;
1997-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff.
2010-26-11; 97-813, eff. 7-13-12.)
 
21    (20 ILCS 3855/1-25)
22    Sec. 1-25. Agency subject to other laws. Unless otherwise
23stated, the Agency is subject to the provisions of all
24applicable laws, including but not limited to, each of the
25following:

 

 

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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
16Resources Fund; Illinois Solar for All Program.
17    (a) The Illinois Power Agency Renewable Energy Resources
18Fund is created as a special fund in the State treasury.
19    (b) The Illinois Power Agency Renewable Energy Resources
20Fund shall be administered by the Agency as described in this
21subsection (b), provided that the changes to this subsection
22(b) made by this amendatory Act of the 99th General Assembly
23shall 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

 

 

09900SB2814ham003- 51 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 52 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 53 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 54 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 55 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 56 -LRB099 19990 JWD 51755 a

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"
14means persons and families whose income does not exceed 80% of
15area median income, adjusted for family size and revised every
165 years.
17    For the purposes of this subsection (b), the Agency shall
18define "environmental justice community" as part of program
19development, to ensure, to the extent practicable,
20compatibility with other agencies' definitions and may, for
21guidance, look to the definitions used by federal, state, or
22local governments.
23    (b-5) After the receipt of all payments required by Section
2416-115D of the Public Utilities Act, no additional funds shall
25be deposited into the Illinois Power Agency Renewable Energy
26Resources Fund unless directed by order of the Commission.

 

 

09900SB2814ham003- 57 -LRB099 19990 JWD 51755 a

1    (b-10) After the receipt of all payments required by
2Section 16-115D of the Public Utilities Act and payment in full
3of all contracts executed by the Agency under subsections (b)
4and (i) of this Section, if the balance of the Illinois Power
5Agency Renewable Energy Resources Fund is under $5,000, then
6the Fund shall be inoperative and any remaining funds and any
7funds submitted to the Fund after that date, shall be
8transferred to the Supplemental Low-Income Energy Assistance
9Fund for use in the Low-Income Home Energy Assistance Program,
10as authorized by the Energy Assistance Act. to procure
11renewable energy resources. Prior to June 1, 2011, resources
12procured pursuant to this Section shall be procured from
13facilities located in Illinois, provided the resources are
14available from those facilities. If resources are not available
15in Illinois, then they shall be procured in states that adjoin
16Illinois. If resources are not available in Illinois or in
17states that adjoin Illinois, then they may be purchased
18elsewhere. Beginning June 1, 2011, resources procured pursuant
19to this Section shall be procured from facilities located in
20Illinois or states that adjoin Illinois. If resources are not
21available in Illinois or in states that adjoin Illinois, then
22they may be procured elsewhere. To the extent available, at
23least 75% of these renewable energy resources shall come from
24wind generation. Of the renewable energy resources procured
25pursuant to this Section at least the following specified
26percentages shall come from photovoltaics on the following

 

 

09900SB2814ham003- 58 -LRB099 19990 JWD 51755 a

1schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by
2June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the
3renewable energy resources procured pursuant to this Section,
4at least the following percentages shall come from distributed
5renewable energy generation devices: 0.5% by June 1, 2013,
60.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter.
7To the extent available, half of the renewable energy resources
8procured from distributed renewable energy generation shall
9come from devices of less than 25 kilowatts in nameplate
10capacity. Renewable energy resources procured from distributed
11generation devices may also count towards the required
12percentages for wind and solar photovoltaics. Procurement of
13renewable energy resources from distributed renewable energy
14generation devices shall be done on an annual basis through
15multi-year contracts of no less than 5 years, and shall consist
16solely of renewable energy credits.
17    The Agency shall create credit requirements for suppliers
18of distributed renewable energy. In order to minimize the
19administrative burden on contracting entities, the Agency
20shall solicit the use of third-party organizations to aggregate
21distributed renewable energy into groups of no less than one
22megawatt in installed capacity. These third-party
23organizations shall administer contracts with individual
24distributed renewable energy generation device owners. An
25individual distributed renewable energy generation device
26owner shall have the ability to measure the output of his or

 

 

09900SB2814ham003- 59 -LRB099 19990 JWD 51755 a

1her distributed renewable energy generation device.
2    (c) (Blank). The Agency shall procure renewable energy
3resources at least once each year in conjunction with a
4procurement event for electric utilities required to comply
5with Section 1-75 of the Act and shall, whenever possible,
6enter into long-term contracts on an annual basis for a portion
7of the incremental requirement for the given procurement year.
8    (d) (Blank). The price paid to procure renewable energy
9credits using monies from the Illinois Power Agency Renewable
10Energy Resources Fund shall not exceed the winning bid prices
11paid for like resources procured for electric utilities
12required to comply with Section 1-75 of this Act.
13    (e) All renewable energy credits procured using monies from
14the Illinois Power Agency Renewable Energy Resources Fund shall
15be permanently retired.
16    (f) The selection of one or more third-party program
17managers or administrators, the selection of the independent
18evaluator, and the procurement processes described in this
19Section are exempt from the requirements of the Illinois
20Procurement Code, under Section 20-10 of that Code. The
21procurement process described in this Section is exempt from
22the requirements of the Illinois Procurement Code, pursuant to
23Section 20-10 of that Code.
24    (g) All disbursements from the Illinois Power Agency
25Renewable Energy Resources Fund shall be made only upon
26warrants of the Comptroller drawn upon the Treasurer as

 

 

09900SB2814ham003- 60 -LRB099 19990 JWD 51755 a

1custodian of the Fund upon vouchers signed by the Director or
2by the person or persons designated by the Director for that
3purpose. The Comptroller is authorized to draw the warrant upon
4vouchers so signed. The Treasurer shall accept all warrants so
5signed and shall be released from liability for all payments
6made on those warrants.
7    (h) The Illinois Power Agency Renewable Energy Resources
8Fund shall not be subject to sweeps, administrative charges, or
9chargebacks, including, but not limited to, those authorized
10under Section 8h of the State Finance Act, that would in any
11way result in the transfer of any funds from this Fund to any
12other fund of this State or in having any such funds utilized
13for any purpose other than the express purposes set forth in
14this Section.
15    (h-5) The Agency may assess fees to each bidder to recover
16the costs incurred in connection with a procurement process
17held 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,
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.)
 

 

 

09900SB2814ham003- 72 -LRB099 19990 JWD 51755 a

1    (20 ILCS 3855/1-75)
2    Sec. 1-75. Planning and Procurement Bureau. The Planning
3and Procurement Bureau has the following duties and
4responsibilities:
5    (a) The Planning and Procurement Bureau shall each year,
6beginning in 2008, develop procurement plans and conduct
7competitive procurement processes in accordance with the
8requirements of Section 16-111.5 of the Public Utilities Act
9for the eligible retail customers of electric utilities that on
10December 31, 2005 provided electric service to at least 100,000
11customers in Illinois. Beginning with the delivery year
12commencing on June 1, 2017, the Planning and Procurement Bureau
13shall develop plans and processes for the procurement of zero
14emission credits from zero emission facilities in accordance
15with the requirements of subsection (d-5) of this Section. The
16Planning and Procurement Bureau shall also develop procurement
17plans and conduct competitive procurement processes in
18accordance with the requirements of Section 16-111.5 of the
19Public Utilities Act for the eligible retail customers of small
20multi-jurisdictional electric utilities that (i) on December
2131, 2005 served less than 100,000 customers in Illinois and
22(ii) request a procurement plan for their Illinois
23jurisdictional load. This Section shall not apply to a small
24multi-jurisdictional utility until such time as a small
25multi-jurisdictional utility requests the Agency to prepare a

 

 

09900SB2814ham003- 73 -LRB099 19990 JWD 51755 a

1procurement plan for their Illinois jurisdictional load. For
2the purposes of this Section, the term "eligible retail
3customers" has the same definition as found in Section
416-111.5(a) of the Public Utilities Act.
5    Beginning with the planning process for the plan or plans
6to be implemented in the 2017 delivery year, the Agency shall
7no longer include the procurement of renewable energy resources
8in the annual procurement plans required by this subsection (a)
9and shall instead develop a long-term renewable resources
10procurement plan in accordance with subsection (c) of this
11Section 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

 

 

09900SB2814ham003- 74 -LRB099 19990 JWD 51755 a

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;

 

 

09900SB2814ham003- 75 -LRB099 19990 JWD 51755 a

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.

 

 

09900SB2814ham003- 77 -LRB099 19990 JWD 51755 a

1    (b) The experts or expert consulting firms retained by the
2Agency shall, as appropriate, prepare procurement plans, and
3conduct a competitive procurement process as prescribed in
4Section 16-111.5 of the Public Utilities Act, to ensure
5adequate, reliable, affordable, efficient, and environmentally
6sustainable electric service at the lowest total cost over
7time, taking into account any benefits of price stability, for
8eligible retail customers of electric utilities that on
9December 31, 2005 provided electric service to at least 100,000
10customers in the State of Illinois, and for eligible Illinois
11retail customers of small multi-jurisdictional electric
12utilities that (i) on December 31, 2005 served less than
13100,000 customers in Illinois and (ii) request a procurement
14plan 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
23procurement plan shall include cost-effective renewable energy
24resources equal to at least 13% of each utility's load for
25eligible retail customers and 13% of the applicable portion of
26each utility's load for retail customers who are not eligible

 

 

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

 

 

09900SB2814ham003- 91 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 92 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 93 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 94 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 95 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 96 -LRB099 19990 JWD 51755 a

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.

 

 

09900SB2814ham003- 97 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 98 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 99 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 109 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 110 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 111 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 112 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 113 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 115 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 116 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 117 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 120 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 124 -LRB099 19990 JWD 51755 a

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.

 

 

09900SB2814ham003- 125 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 126 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 127 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 128 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 129 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 130 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 131 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 132 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 133 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 134 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 135 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 136 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 137 -LRB099 19990 JWD 51755 a

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
11Average 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
26comment, as required by Section 16-111.5 of the Public

 

 

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1Utilities Act.
2    (f) The Agency shall submit the final procurement plan to
3the Commission. The Agency shall revise a procurement plan if
4the Commission determines that it does not meet the standards
5set forth in Section 16-111.5 of the Public Utilities Act.
6    (g) The Agency shall assess fees to each affected utility
7to recover the costs incurred in preparation of the annual
8procurement plan for the utility.
9    (h) The Agency shall assess fees to each bidder to recover
10the costs incurred in connection with a competitive procurement
11process.
12    (i) A renewable energy credit, carbon emission credit, or
13zero emission credit can only be used once to comply with a
14single portfolio or other standard as set forth in subsection
15(c), subsection (d), or subsection (d-5) of this Section,
16respectively. A renewable energy credit, carbon emission
17credit, or zero emission credit cannot be used to satisfy the
18requirements of more than one standard. If more than one type
19of credit is issued for the same megawatt hour of energy, only
20one credit can be used to satisfy the requirements of a single
21standard. After such use, the credit must be retired together
22with any other credits issued for the same megawatt hour of
23energy.
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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1changing 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,
4and 98-1076)
5    Sec. 20-10. Competitive sealed bidding; reverse auction.
6    (a) Conditions for use. All contracts shall be awarded by
7competitive sealed bidding except as otherwise provided in
8Section 20-5.
9    (b) Invitation for bids. An invitation for bids shall be
10issued and shall include a purchase description and the
11material contractual terms and conditions applicable to the
12procurement.
13    (c) Public notice. Public notice of the invitation for bids
14shall be published in the Illinois Procurement Bulletin at
15least 14 calendar days before the date set in the invitation
16for the opening of bids.
17    (d) Bid opening. Bids shall be opened publicly in the
18presence of one or more witnesses at the time and place
19designated in the invitation for bids. The name of each bidder,
20the amount of each bid, and other relevant information as may
21be specified by rule shall be recorded. After the award of the
22contract, the winning bid and the record of each unsuccessful
23bid shall be open to public inspection.
24    (e) Bid acceptance and bid evaluation. Bids shall be
25unconditionally accepted without alteration or correction,

 

 

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1except as authorized in this Code. Bids shall be evaluated
2based on the requirements set forth in the invitation for bids,
3which may include criteria to determine acceptability such as
4inspection, testing, quality, workmanship, delivery, and
5suitability for a particular purpose. Those criteria that will
6affect the bid price and be considered in evaluation for award,
7such as discounts, transportation costs, and total or life
8cycle costs, shall be objectively measurable. The invitation
9for bids shall set forth the evaluation criteria to be used.
10    (f) Correction or withdrawal of bids. Correction or
11withdrawal of inadvertently erroneous bids before or after
12award, or cancellation of awards of contracts based on bid
13mistakes, shall be permitted in accordance with rules. After
14bid opening, no changes in bid prices or other provisions of
15bids prejudicial to the interest of the State or fair
16competition shall be permitted. All decisions to permit the
17correction or withdrawal of bids based on bid mistakes shall be
18supported by written determination made by a State purchasing
19officer.
20    (g) Award. The contract shall be awarded with reasonable
21promptness by written notice to the lowest responsible and
22responsive bidder whose bid meets the requirements and criteria
23set forth in the invitation for bids, except when a State
24purchasing officer determines it is not in the best interest of
25the State and by written explanation determines another bidder
26shall receive the award. The explanation shall appear in the

 

 

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1appropriate volume of the Illinois Procurement Bulletin. The
2written 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
11implement the requirements of this subsection (g).
12    The written explanation shall be filed with the Legislative
13Audit Commission and the Procurement Policy Board, and be made
14available for inspection by the public, within 30 calendar days
15after the agency's decision to award the contract.
16    (h) Multi-step sealed bidding. When it is considered
17impracticable to initially prepare a purchase description to
18support an award based on price, an invitation for bids may be
19issued requesting the submission of unpriced offers to be
20followed by an invitation for bids limited to those bidders
21whose offers have been qualified under the criteria set forth
22in the first solicitation.
23    (i) Alternative procedures. Notwithstanding any other
24provision of this Act to the contrary, the Director of the
25Illinois Power Agency may create alternative bidding
26procedures to be used in procuring professional services under

 

 

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1subsections subsection (a) and (c) of Section 1-75 and
2subsection (d) of Section 1-78 of the Illinois Power Agency Act
3and Section 16-111.5(c) of the Public Utilities Act and to
4procure renewable energy resources under Section 1-56 of the
5Illinois Power Agency Act. These alternative procedures shall
6be set forth together with the other criteria contained in the
7invitation for bids, and shall appear in the appropriate volume
8of the Illinois Procurement Bulletin.
9    (j) Reverse auction. Notwithstanding any other provision
10of this Section and in accordance with rules adopted by the
11chief procurement officer, that chief procurement officer may
12procure supplies or services through a competitive electronic
13auction bidding process after the chief procurement officer
14determines that the use of such a process will be in the best
15interest of the State. The chief procurement officer shall
16publish that determination in his or her next volume of the
17Illinois Procurement Bulletin.
18    An invitation for bids shall be issued and shall include
19(i) a procurement description, (ii) all contractual terms,
20whenever practical, and (iii) conditions applicable to the
21procurement, including a notice that bids will be received in
22an electronic auction manner.
23    Public notice of the invitation for bids shall be given in
24the same manner as provided in subsection (c).
25    Bids shall be accepted electronically at the time and in
26the manner designated in the invitation for bids. During the

 

 

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1auction, a bidder's price shall be disclosed to other bidders.
2Bidders shall have the opportunity to reduce their bid prices
3during the auction. At the conclusion of the auction, the
4record of the bid prices received and the name of each bidder
5shall be open to public inspection.
6    After the auction period has terminated, withdrawal of bids
7shall be permitted as provided in subsection (f).
8    The contract shall be awarded within 60 calendar days after
9the auction by written notice to the lowest responsible bidder,
10or all bids shall be rejected except as otherwise provided in
11this Code. Extensions of the date for the award may be made by
12mutual written consent of the State purchasing officer and the
13lowest responsible bidder.
14    This subsection does not apply to (i) procurements of
15professional and artistic services, (ii) telecommunications
16services, communication services, and information services,
17and (iii) contracts for construction projects, including
18design professional services.
19(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12;
2098-1076, eff. 1-1-15.)
 
21    (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
22and 98-1076)
23    Sec. 20-10. Competitive sealed bidding; reverse auction.
24    (a) Conditions for use. All contracts shall be awarded by
25competitive sealed bidding except as otherwise provided in

 

 

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1Section 20-5.
2    (b) Invitation for bids. An invitation for bids shall be
3issued and shall include a purchase description and the
4material contractual terms and conditions applicable to the
5procurement.
6    (c) Public notice. Public notice of the invitation for bids
7shall be published in the Illinois Procurement Bulletin at
8least 14 calendar days before the date set in the invitation
9for the opening of bids.
10    (d) Bid opening. Bids shall be opened publicly in the
11presence of one or more witnesses at the time and place
12designated in the invitation for bids. The name of each bidder,
13the amount of each bid, and other relevant information as may
14be specified by rule shall be recorded. After the award of the
15contract, the winning bid and the record of each unsuccessful
16bid shall be open to public inspection.
17    (e) Bid acceptance and bid evaluation. Bids shall be
18unconditionally accepted without alteration or correction,
19except as authorized in this Code. Bids shall be evaluated
20based on the requirements set forth in the invitation for bids,
21which may include criteria to determine acceptability such as
22inspection, testing, quality, workmanship, delivery, and
23suitability for a particular purpose. Those criteria that will
24affect the bid price and be considered in evaluation for award,
25such as discounts, transportation costs, and total or life
26cycle costs, shall be objectively measurable. The invitation

 

 

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1for bids shall set forth the evaluation criteria to be used.
2    (f) Correction or withdrawal of bids. Correction or
3withdrawal of inadvertently erroneous bids before or after
4award, or cancellation of awards of contracts based on bid
5mistakes, shall be permitted in accordance with rules. After
6bid opening, no changes in bid prices or other provisions of
7bids prejudicial to the interest of the State or fair
8competition shall be permitted. All decisions to permit the
9correction or withdrawal of bids based on bid mistakes shall be
10supported by written determination made by a State purchasing
11officer.
12    (g) Award. The contract shall be awarded with reasonable
13promptness by written notice to the lowest responsible and
14responsive bidder whose bid meets the requirements and criteria
15set forth in the invitation for bids, except when a State
16purchasing officer determines it is not in the best interest of
17the State and by written explanation determines another bidder
18shall receive the award. The explanation shall appear in the
19appropriate volume of the Illinois Procurement Bulletin. The
20written 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
3implement the requirements of this subsection (g).
4    The written explanation shall be filed with the Legislative
5Audit Commission and the Procurement Policy Board, and be made
6available for inspection by the public, within 30 days after
7the agency's decision to award the contract.
8    (h) Multi-step sealed bidding. When it is considered
9impracticable to initially prepare a purchase description to
10support an award based on price, an invitation for bids may be
11issued requesting the submission of unpriced offers to be
12followed by an invitation for bids limited to those bidders
13whose offers have been qualified under the criteria set forth
14in the first solicitation.
15    (i) Alternative procedures. Notwithstanding any other
16provision of this Act to the contrary, the Director of the
17Illinois Power Agency may create alternative bidding
18procedures to be used in procuring professional services under
19subsections subsection (a) and (c) of Section 1-75 and
20subsection (d) of Section 1-78 of the Illinois Power Agency Act
21and Section 16-111.5(c) of the Public Utilities Act and to
22procure renewable energy resources under Section 1-56 of the
23Illinois Power Agency Act. These alternative procedures shall
24be set forth together with the other criteria contained in the
25invitation for bids, and shall appear in the appropriate volume
26of the Illinois Procurement Bulletin.

 

 

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1    (j) Reverse auction. Notwithstanding any other provision
2of this Section and in accordance with rules adopted by the
3chief procurement officer, that chief procurement officer may
4procure supplies or services through a competitive electronic
5auction bidding process after the chief procurement officer
6determines that the use of such a process will be in the best
7interest of the State. The chief procurement officer shall
8publish that determination in his or her next volume of the
9Illinois Procurement Bulletin.
10    An invitation for bids shall be issued and shall include
11(i) a procurement description, (ii) all contractual terms,
12whenever practical, and (iii) conditions applicable to the
13procurement, including a notice that bids will be received in
14an electronic auction manner.
15    Public notice of the invitation for bids shall be given in
16the same manner as provided in subsection (c).
17    Bids shall be accepted electronically at the time and in
18the manner designated in the invitation for bids. During the
19auction, a bidder's price shall be disclosed to other bidders.
20Bidders shall have the opportunity to reduce their bid prices
21during the auction. At the conclusion of the auction, the
22record of the bid prices received and the name of each bidder
23shall be open to public inspection.
24    After the auction period has terminated, withdrawal of bids
25shall be permitted as provided in subsection (f).
26    The contract shall be awarded within 60 calendar days after

 

 

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1the auction by written notice to the lowest responsible bidder,
2or all bids shall be rejected except as otherwise provided in
3this Code. Extensions of the date for the award may be made by
4mutual written consent of the State purchasing officer and the
5lowest responsible bidder.
6    This subsection does not apply to (i) procurements of
7professional and artistic services, (ii) telecommunications
8services, communication services, and information services,
9and (iii) contracts for construction projects, including
10design professional services.
11(Source: P.A. 97-96, eff. 7-13-11; 97-895, eff. 8-3-12;
1298-1076, eff. 1-1-15.)
 
13    Section 15. The Public Utilities Act is amended by changing
14Sections 5-202.1, 8-103, 8-104, 16-107, 16-107.5, 16-108,
1516-108.5, 16-111.1, 16-111.5, 16-111.5B, 16-111.7, 16-115D,
1616-119A, and 16-127 and by adding Sections 8-103B, 9-107,
1716-107.6, 16-108.9, 16-108.10, 16-108.11, and 16-108.12 as
18follows:
 
19    (220 ILCS 5/5-202.1)
20    Sec. 5-202.1. Misrepresentation before Commission;
21penalty.
22    (a) Any person or corporation, as defined in Sections 3-113
23and 3-114 of this Act, who knowingly misrepresents facts to the
24Commission in response to any Commission contact, inquiry or

 

 

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1discussion or knowingly aids another in doing so in response to
2any Commission contact, inquiry or discussion or knowingly
3permits another to misrepresent facts through testimony or the
4offering or withholding of material information in any
5proceeding shall be subject to a civil penalty. Whenever the
6Commission is of the opinion that a person or corporation is
7misrepresenting or has misrepresented facts, the Commission
8may initiate a proceeding to determine whether a
9misrepresentation has in fact occurred. If the Commission finds
10that a person or corporation has violated this Section, the
11Commission shall impose a penalty of not less than $1,000 and
12not greater than $500,000. Each misrepresentation of a fact
13found by the Commission shall constitute a separate and
14distinct violation. In determining the amount of the penalty to
15be assessed, the Commission may consider any matters of record
16in aggravation or mitigation of the penalty, as set forth in
17Section 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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1this Section shall be undertaken pursuant to Section 4-203.
2    (c) For purposes of this Section, "Commission," as defined
3in Section 3-102, refers to any Commissioner, agent, or
4employee of the Illinois Commerce commission, and also refers
5to any other person engaged to represent the Commission in
6carrying 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
10measures.
11    (a) It is the policy of the State that electric utilities
12are required to use cost-effective energy efficiency and
13demand-response measures to reduce delivery load. Requiring
14investment in cost-effective energy efficiency and
15demand-response measures will reduce direct and indirect costs
16to consumers by decreasing environmental impacts and by
17avoiding or delaying the need for new generation, transmission,
18and distribution infrastructure. It serves the public interest
19to allow electric utilities to recover costs for reasonably and
20prudently incurred expenses for energy efficiency and
21demand-response measures. As used in this Section,
22"cost-effective" means that the measures satisfy the total
23resource cost test. The low-income measures described in
24subsection (f)(4) of this Section shall not be required to meet
25the total resource cost test. For purposes of this Section, the

 

 

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1terms "energy-efficiency", "demand-response", "electric
2utility", and "total resource cost test" shall have the
3meanings set forth in the Illinois Power Agency Act. For
4purposes of this Section, the amount per kilowatthour means the
5total amount paid for electric service expressed on a per
6kilowatthour basis. For purposes of this Section, the total
7amount paid for electric service includes without limitation
8estimated amounts paid for supply, transmission, distribution,
9surcharges, and add-on-taxes.
10    (a-5) This Section applies to electric utilities serving
11500,000 or less but more than 200,000 retail customers in this
12State. Through December 31, 2017, this Section also applies to
13electric utilities serving more than 500,000 retail customers
14in the State.
15    (b) Electric utilities shall implement cost-effective
16energy efficiency measures to meet the following incremental
17annual 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
9meeting the annual incremental savings goal in the applicable
10year or by showing that the total cumulative annual savings
11within a 3-year planning period associated with measures
12implemented after May 31, 2014 was equal to the sum of each
13annual incremental savings requirement from May 31, 2014
14through the end of the applicable year.
15    (c) Electric utilities shall implement cost-effective
16demand-response measures to reduce peak demand by 0.1% over the
17prior year for eligible retail customers, as defined in Section
1816-111.5 of this Act, and for customers that elect hourly
19service from the utility pursuant to Section 16-107 of this
20Act, provided those customers have not been declared
21competitive. This requirement commences June 1, 2008 and
22continues for 10 years.
23    (d) Notwithstanding the requirements of subsections (b)
24and (c) of this Section, an electric utility shall reduce the
25amount of energy efficiency and demand-response measures
26implemented over a 3-year planning period by an amount

 

 

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1necessary to limit the estimated average annual increase in the
2amounts paid by retail customers in connection with electric
3service 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
7the limitation on the amount of energy efficiency and
8demand-response measures implemented pursuant to this Section
9and report to the General Assembly its findings as to whether
10that limitation unduly constrains the procurement of energy
11efficiency and demand-response measures.
12    (e) Electric utilities shall be responsible for overseeing
13the design, development, and filing of energy efficiency and
14demand-response plans with the Commission. Electric utilities
15shall implement 100% of the demand-response measures in the
16plans. Electric utilities shall implement 75% of the energy
17efficiency measures approved by the Commission, and may, as
18part of that implementation, outsource various aspects of
19program development and implementation. The remaining 25% of
20those energy efficiency measures approved by the Commission
21shall be implemented by the Department of Commerce and Economic
22Opportunity, and must be designed in conjunction with the
23utility and the filing process. The Department may outsource
24development and implementation of energy efficiency measures.
25A minimum of 10% of the entire portfolio of cost-effective
26energy efficiency measures shall be procured from units of

 

 

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1local government, municipal corporations, school districts,
2and community college districts. The Department shall
3coordinate the implementation of these measures.
4    The apportionment of the dollars to cover the costs to
5implement the Department's share of the portfolio of energy
6efficiency measures shall be made to the Department once the
7Department has executed rebate agreements, grants, or
8contracts for energy efficiency measures and provided
9supporting documentation for those rebate agreements, grants,
10and contracts to the utility. The Department is authorized to
11adopt any rules necessary and prescribe procedures in order to
12ensure compliance by applicants in carrying out the purposes of
13rebate agreements for energy efficiency measures implemented
14by the Department made under this Section.
15    The details of the measures implemented by the Department
16shall be submitted by the Department to the Commission in
17connection with the utility's filing regarding the energy
18efficiency and demand-response measures that the utility
19implements.
20    A utility providing approved energy efficiency and
21demand-response measures in the State shall be permitted to
22recover costs of those measures through an automatic adjustment
23clause tariff filed with and approved by the Commission. The
24tariff shall be established outside the context of a general
25rate case. Each year the Commission shall initiate a review to
26reconcile any amounts collected with the actual costs and to

 

 

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1determine the required adjustment to the annual tariff factor
2to match annual expenditures.
3    Each utility shall include, in its recovery of costs, the
4costs estimated for both the utility's and the Department's
5implementation of energy efficiency and demand-response
6measures. Costs collected by the utility for measures
7implemented by the Department shall be submitted to the
8Department pursuant to Section 605-323 of the Civil
9Administrative Code of Illinois, shall be deposited into the
10Energy Efficiency Portfolio Standards Fund, and shall be used
11by the Department solely for the purpose of implementing these
12measures. A utility shall not be required to advance any moneys
13to the Department but only to forward such funds as it has
14collected. The Department shall report to the Commission on an
15annual basis regarding the costs actually incurred by the
16Department in the implementation of the measures. Any changes
17to the costs of energy efficiency measures as a result of plan
18modifications shall be appropriately reflected in amounts
19recovered by the utility and turned over to the Department.
20    The portfolio of measures, administered by both the
21utilities and the Department, shall, in combination, be
22designed to achieve the annual savings targets described in
23subsections (b) and (c) of this Section, as modified by
24subsection (d) of this Section.
25    The utility and the Department shall agree upon a
26reasonable portfolio of measures and determine the measurable

 

 

09900SB2814ham003- 171 -LRB099 19990 JWD 51755 a

1corresponding percentage of the savings goals associated with
2measures implemented by the utility or Department.
3    No utility shall be assessed a penalty under subsection (f)
4of this Section for failure to make a timely filing if that
5failure is the result of a lack of agreement with the
6Department with respect to the allocation of responsibilities
7or related costs or target assignments. In that case, the
8Department and the utility shall file their respective plans
9with the Commission and the Commission shall determine an
10appropriate division of measures and programs that meets the
11requirements of this Section.
12    If the Department is unable to meet incremental annual
13performance goals for the portion of the portfolio implemented
14by the Department, then the utility and the Department shall
15jointly submit a modified filing to the Commission explaining
16the performance shortfall and recommending an appropriate
17course going forward, including any program modifications that
18may be appropriate in light of the evaluations conducted under
19item (7) of subsection (f) of this Section. In this case, the
20utility obligation to collect the Department's costs and turn
21over those funds to the Department under this subsection (e)
22shall continue only if the Commission approves the
23modifications to the plan proposed by the Department.
24    (f) No later than November 15, 2007, each electric utility
25shall file an energy efficiency and demand-response plan with
26the Commission to meet the energy efficiency and

 

 

09900SB2814ham003- 172 -LRB099 19990 JWD 51755 a

1demand-response standards for 2008 through 2010. No later than
2October 1, 2010, each electric utility shall file an energy
3efficiency and demand-response plan with the Commission to meet
4the energy efficiency and demand-response standards for 2011
5through 2013. Every 3 years thereafter, each electric utility
6shall file, no later than September 1, an energy efficiency and
7demand-response plan with the Commission. If a utility does not
8file such a plan by September 1 of an applicable year, it shall
9face a penalty of $100,000 per day until the plan is filed.
10Each utility's plan shall set forth the utility's proposals to
11meet the utility's portion of the energy efficiency standards
12identified in subsection (b) and the demand-response standards
13identified in subsection (c) of this Section as modified by
14subsections (d) and (e), taking into account the unique
15circumstances of the utility's service territory. The
16Commission shall seek public comment on the utility's plan and
17shall issue an order approving or disapproving each plan within
185 months after its submission. If the Commission disapproves a
19plan, the Commission shall, within 30 days, describe in detail
20the reasons for the disapproval and describe a path by which
21the utility may file a revised draft of the plan to address the
22Commission's concerns satisfactorily. If the utility does not
23refile with the Commission within 60 days, the utility shall be
24subject to penalties at a rate of $100,000 per day until the
25plan is filed. This process shall continue, and penalties shall
26accrue, until the utility has successfully filed a portfolio of

 

 

09900SB2814ham003- 173 -LRB099 19990 JWD 51755 a

1energy efficiency and demand-response measures. Penalties
2shall be deposited into the Energy Efficiency Trust Fund. In
3submitting proposed energy efficiency and demand-response
4plans and funding levels to meet the savings goals adopted by
5this 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
20demand-response program revenue may be allocated for
21demonstration of breakthrough equipment and devices.
22    (h) This Section does not apply to an electric utility that
23on December 31, 2005 provided electric service to fewer than
24100,000 customers in Illinois.
25    (i) If, after 2 years, an electric utility fails to meet
26the efficiency standard specified in subsection (b) of this

 

 

09900SB2814ham003- 175 -LRB099 19990 JWD 51755 a

1Section, as modified by subsections (d) and (e), it shall make
2a contribution to the Low-Income Home Energy Assistance
3Program. The combined total liability for failure to meet the
4goal shall be $1,000,000, which shall be assessed as follows: a
5large electric utility shall pay $665,000, and a medium
6electric utility shall pay $335,000. If, after 3 years, an
7electric utility fails to meet the efficiency standard
8specified in subsection (b) of this Section, as modified by
9subsections (d) and (e), it shall make a contribution to the
10Low-Income Home Energy Assistance Program. The combined total
11liability for failure to meet the goal shall be $1,000,000,
12which shall be assessed as follows: a large electric utility
13shall pay $665,000, and a medium electric utility shall pay
14$335,000. In addition, the responsibility for implementing the
15energy efficiency measures of the utility making the payment
16shall be transferred to the Illinois Power Agency if, after 3
17years, or in any subsequent 3-year period, the utility fails to
18meet the efficiency standard specified in subsection (b) of
19this Section, as modified by subsections (d) and (e). The
20Agency shall implement a competitive procurement program to
21procure resources necessary to meet the standards specified in
22this Section as modified by subsections (d) and (e), with costs
23for those resources to be recovered in the same manner as
24products purchased through the procurement plan as provided in
25Section 16-111.5. The Director shall implement this
26requirement in connection with the procurement plan as provided

 

 

09900SB2814ham003- 176 -LRB099 19990 JWD 51755 a

1in Section 16-111.5.
2    For purposes of this Section, (i) a "large electric
3utility" is an electric utility that, on December 31, 2005,
4served more than 2,000,000 electric customers in Illinois; (ii)
5a "medium electric utility" is an electric utility that, on
6December 31, 2005, served 2,000,000 or fewer but more than
7100,000 electric customers in Illinois; and (iii) Illinois
8electric utilities that are affiliated by virtue of a common
9parent company are considered a single electric utility.
10    (j) If, after 3 years, or any subsequent 3-year period, the
11Department fails to implement the Department's share of energy
12efficiency measures required by the standards in subsection
13(b), then the Illinois Power Agency may assume responsibility
14for and control of the Department's share of the required
15energy efficiency measures. The Agency shall implement a
16competitive procurement program to procure resources necessary
17to meet the standards specified in this Section, with the costs
18of these resources to be recovered in the same manner as
19provided for the Department in this Section.
20    (k) No electric utility shall be deemed to have failed to
21meet the energy efficiency standards to the extent any such
22failure is due to a failure of the Department or the Agency.
23    (l)(1) The energy efficiency and demand-response plans of
24electric utilities serving more than 500,000 retail customers
25in the State that were approved by the Commission on or before
26the effective date of this amendatory Act of the 99th General

 

 

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1Assembly for the period June 1, 2014 through May 31, 2017 shall
2continue to be in force and effect through December 31, 2017 so
3that the energy efficiency programs set forth in those plans
4continue to be offered during the period June 1, 2017 through
5December 31, 2017. Each such utility is authorized to increase,
6on a pro rata basis, the energy savings goals and budgets
7approved in its plan to reflect the additional 7 months of the
8plan'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;
798-90, eff. 7-15-13.)
 
8    (220 ILCS 5/8-103B new)
9    Sec. 8-103B. Energy efficiency and demand-response
10measures.
11    (a) It is the policy of the State that electric utilities
12are required to use cost-effective energy efficiency and
13demand-response measures to reduce delivery load. Requiring
14investment in cost-effective energy efficiency and
15demand-response measures will reduce direct and indirect costs
16to consumers by decreasing environmental impacts and by
17avoiding or delaying the need for new generation, transmission,
18and distribution infrastructure. It serves the public interest
19to allow electric utilities to recover costs for reasonably and
20prudently incurred expenditures for energy efficiency and
21demand-response measures. As used in this Section,
22"cost-effective" means that the measures satisfy the total
23resource cost test. The low-income measures described in
24subsection (c) of this Section and energy efficiency measures
25implemented under subsection (l) of this Section shall not be

 

 

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1required to meet the total resource cost test. For purposes of
2this Section, the terms "energy-efficiency",
3"demand-response", "electric utility", and "total resource
4cost test" have the meanings set forth in the Illinois Power
5Agency Act. For purposes of this Section, the amount per
6kilowatthour means the total amount paid for electric service
7expressed on a per kilowatthour basis. For purposes of this
8Section, the total amount paid for electric service includes,
9without limitation, estimated amounts paid for supply,
10transmission, distribution, surcharges, and add-on taxes.
11    (a-5) This Section applies to electric utilities serving
12more than 500,000 retail customers in the State for those
13multi-year plans commencing after December 31, 2017.
14    (b) For purposes of this Section, electric utilities
15subject to this Section that serve more than 3,000,000 retail
16customers in the State shall be deemed to have achieved a
17cumulative persisting annual savings of 6.6%, or 5,777,692
18megawatt-hours (MWhs), from energy efficiency measures and
19programs implemented during the period beginning January 1,
202012 and ending December 31, 2017, which percent is based on
21the deemed average weather normalized sales of electric power
22and energy during calendar years 2014, 2015, and 2016 of
2388,000,000 MWhs. The 88,000,000 MWhs of deemed electric power
24and energy sales shall also serve as the baseline value for
25calculating the cumulative persisting annual savings in
26subsection (b-5). After 2017, the deemed value of cumulative

 

 

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1persisting annual savings from energy efficiency measures and
2programs implemented during the period beginning January 1,
32012 and ending December 31, 2017, shall be reduced each year,
4as follows, and the applicable value shall be applied to and
5count toward the utility's achievement of the cumulative
6persisting 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
21annual savings" means the total electric energy savings in a
22given year from measures installed in that year or in previous
23years, but no earlier than January 1, 2012, that are still
24operational and providing savings in that year because the
25measures 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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1Section that serve more than 3,000,000 retail customers in the
2State shall achieve the following cumulative persisting annual
3savings goals, as modified by subsection (f) of this Section
4and as compared to the deemed baseline of 88,000,000 MWhs of
5electric power and energy sales set forth in subsection (b), as
6reduced by the number of MWhs equal to the sum of the annual
7consumption of all Self-Direct Customers that elect such status
8under subsection (l) of this Section as averaged across the
9calendar years 2014, 2015, and 2016, through the implementation
10of energy efficiency measures during the applicable year and in
11prior 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
13subject to this Section that serve less than 3,000,000 retail
14customers but more than 500,000 retail customers in the State
15shall be deemed to have achieved a cumulative persisting annual
16savings of 6.6%, or 2,435,400 MWhs, from energy efficiency
17measures and programs implemented during the period beginning
18January 1, 2012 and ending December 31, 2017, which is based on
19the deemed average weather normalized sales of electric power
20and energy during calendar years 2014, 2015, and 2016 of
2136,900,000 MWhs. The 36,900,000 MWhs of deemed electric power
22and energy sales shall also serve as the baseline value for
23calculating the cumulative persisting annual savings in
24subsection (b-15). After 2017, the deemed value of cumulative
25persisting annual savings from energy efficiency measures and
26programs implemented during the period beginning January 1,

 

 

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12012 and ending December 31, 2017, shall be reduced each year,
2as follows, and the applicable value shall be applied to and
3count toward the utility's achievement of the cumulative
4persisting 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
19this Section that serve less than 3,000,000 retail customers
20but more than 500,000 retail customers in the State shall
21achieve the following cumulative persisting annual savings
22goals, as modified by subsection (b-20) and subsection (f) of
23this Section and as compared to the deemed baseline as reduced
24by the number of MWhs equal to the sum of the annual
25consumption of all Self-Direct Customers that elect such status
26under subsection (l) of this Section as averaged across the

 

 

09900SB2814ham003- 186 -LRB099 19990 JWD 51755 a

1calendar years 2014, 2015, and 2016, through the implementation
2of energy efficiency measures during the applicable year and in
3prior 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
5savings goal for the applicable calendar year and the
6cumulative persisting annual savings goal for the immediately
7preceding calendar year is 0.8% for the period of January 1,
82018 through December 31, 2025 and 0.6% for the period of
9January 1, 2026 through December 31, 2030.
10    (b-20) Each electric utility subject to this Section may
11include cost-effective voltage optimization measures in its
12plans submitted under subsections (f) and (g) of this Section,
13and the costs incurred by a utility to implement the measures
14under a Commission-approved plan shall be recovered under the
15provisions of Article IX or Section 16-108.5 of this Act. For
16purposes of this Section, the measure life of voltage
17optimization measures shall be 15 years. The measure life
18period is independent of the depreciation rate of the voltage
19optimization assets deployed.
20    Within 270 days after the effective date of this amendatory
21Act of the 99th General Assembly, an electric utility that
22serves less than 3,000,000 retail customers but more than
23500,000 retail customers in the State shall file a plan with
24the Commission that identifies the cost-effective voltage
25optimization investment the electric utility plans to
26undertake through December 31, 2024. The Commission, after

 

 

09900SB2814ham003- 188 -LRB099 19990 JWD 51755 a

1notice and hearing, shall approve or approve with modification
2the plan within 120 days after the plan's filing and, in the
3order approving or approving with modification the plan, the
4Commission shall adjust the applicable cumulative persisting
5annual savings goals set forth in subsection (b-15) to reflect
6any amount of cost-effective energy savings approved by the
7Commission that is greater than or less than the following
8cumulative persisting annual savings values attributable to
9voltage 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

 

 

09900SB2814ham003- 189 -LRB099 19990 JWD 51755 a

1energy efficiency measure or program with a gas utility under
2plans approved under this Section and Section 8-104 of this
3Act, the electric utility may continue offering the program,
4including the gas energy efficiency measures, in the event the
5gas utility discontinues funding the program. In that event,
6the energy savings value associated with such other fuels shall
7be converted to electric energy savings on an equivalent Btu
8basis for the premises. However, the electric utility shall
9prioritize programs for low-income residential customers to
10the extent practicable. An electric utility may recover the
11costs of offering the gas energy efficiency measures under this
12subsection (b-25).
13    For those energy efficiency measures or programs that save
14both electricity and other fuels but are not jointly offered
15with a gas utility under plans approved under this Section and
16Section 8-104 or not offered with an affiliated gas utility
17under paragraph (6) of subsection (f) of Section 8-104 of this
18Act, the electric utility may count savings of fuels other than
19electricity toward the achievement of its annual savings goal,
20and the energy savings value associated with such other fuels
21shall be converted to electric energy savings on an equivalent
22Btu basis at the premises.
23    In no event shall more than 10% of each year's applicable
24annual incremental goal as defined in paragraph (7) of
25subsection (g) of this Section be met through savings of fuels
26other than electricity.

 

 

09900SB2814ham003- 190 -LRB099 19990 JWD 51755 a

1    (c) Electric utilities shall be responsible for overseeing
2the design, development, and filing of energy efficiency plans
3with the Commission and may, as part of that implementation,
4outsource various aspects of program development and
5implementation. A minimum of 10%, for electric utilities that
6serve more than 3,000,000 retail customers in the State, and a
7minimum of 7%, for electric utilities that serve less than
83,000,000 retail customers more than 500,000 retail customers
9in the State, of the utility's entire portfolio funding level
10for a given year shall be used to procure cost-effective energy
11efficiency measures from units of local government, municipal
12corporations, school districts, public housing, and community
13college districts, provided that a minimum percentage of
14available funds shall be used to procure energy efficiency from
15public housing, which percentage shall be equal to public
16housing's share of public building energy consumption.
17    The utilities shall also implement energy efficiency
18measures targeted at low-income households, which, for
19purposes of this Section, shall be defined as households at or
20below 80% of area median income, and expenditures to implement
21the measures shall be no less than $25,000,000 per year for
22electric utilities that serve more than 3,000,000 retail
23customers in the State and no less than $8,350,000 per year for
24electric utilities that serve less than 3,000,000 retail
25customers but more than 500,000 retail customers in the State.
26    Each electric utility shall assess opportunities to

 

 

09900SB2814ham003- 191 -LRB099 19990 JWD 51755 a

1implement cost-effective energy efficiency measures and
2programs through a public housing authority or authorities
3located in its service territory. If such opportunities are
4identified, the utility shall propose such measures and
5programs to address the opportunities. Expenditures to address
6such opportunities shall be credited toward the minimum
7procurement and expenditure requirements set forth in this
8subsection (c).
9    Implementation of energy efficiency measures and programs
10targeted at low-income households should be contracted, when it
11is practicable, to independent third parties that have
12demonstrated capabilities to serve such households, with a
13preference for not-for-profit entities and government agencies
14that have existing relationships with or experience serving
15low-income communities in the State.
16    Each electric utility shall develop and implement
17reporting procedures that address and assist in determining the
18amount of energy savings that can be applied to the low-income
19procurement and expenditure requirements set forth in this
20subsection (c).
21    The electric utilities shall also convene a low-income
22energy efficiency advisory committee to assist in the design
23and evaluation of the low-income energy efficiency programs.
24The committee shall be comprised of the electric utilities
25subject to the requirements of this Section, the gas utilities
26subject to the requirements of Section 8-104 of this Act, the

 

 

09900SB2814ham003- 192 -LRB099 19990 JWD 51755 a

1utilities' low-income energy efficiency implementation
2contractors, and representatives of community-based
3organizations.
4    (d) Notwithstanding any other provision of law to the
5contrary, a utility providing approved energy efficiency
6measures and, if applicable, demand-response measures in the
7State shall be permitted to recover all reasonable and
8prudently incurred costs of those measures from all retail
9customers, except as provided in subsection (l) of this
10Section, 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

 

 

09900SB2814ham003- 193 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 194 -LRB099 19990 JWD 51755 a

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

 

 

09900SB2814ham003- 195 -LRB099 19990 JWD 51755 a

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