Illinois General Assembly - Full Text of HB0691
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Full Text of HB0691  102nd General Assembly

HB0691sam001 102ND GENERAL ASSEMBLY

Sen. Robert Peters

Filed: 5/28/2021

 

 


 

 


 
10200HB0691sam001LRB102 10385 SPS 27196 a

1
AMENDMENT TO HOUSE BILL 691

2    AMENDMENT NO. ______. Amend House Bill 691 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the Rust
5Belt to Green Belt Pilot Program Act.
 
6    Section 5. Legislative findings. The General Assembly
7finds and determines that:
8        (1) Human-induced greenhouse gas emissions have been
9    identified as contributing to global warming, the effects
10    of which pose a threat to the public health, safety,
11    welfare, and economy of the State of Illinois.
12        (2) The White House released a statement claiming
13    that, in 2020, the United States endured 22 separate
14    billion-dollar weather and climate disasters, costing
15    $95,000,000,000 in damages to homes, businesses, and
16    public infrastructure.

 

 

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1        (3) In order to meet the energy needs of the State of
2    Illinois, keep its economy strong, and protect the
3    environment while reducing its contribution to
4    human-induced greenhouse gas emissions, the State of
5    Illinois must be a leader in developing new low-carbon
6    technologies.
7        (4) Offshore wind is an emerging source of large-scale
8    renewable energy that is proximate to Illinois' major
9    electric loads and very job intensive.
10        (5) Offshore wind produces high capacity factor power,
11    making it a valuable resource complimentary to land-based
12    wind and solar.
13        (6) In his first week in office, President Joseph R.
14    Biden, Jr., issued an Executive Order (14008) on Tackling
15    the Climate Crisis at Home and Abroad that directs the
16    Secretary of the Interior to identify steps that can be
17    taken to double offshore wind by 2030 while "ensuring
18    robust protection for our lands, waters, and biodiversity
19    and creating good jobs".
20        (7) The United States Departments of Interior, Energy,
21    and Commerce announced a shared goal to deploy 30
22    gigawatts of offshore wind in the United States by 2030,
23    while protecting biodiversity and promoting ocean co-use,
24    which trigger more than $12,000,000,000 per year in
25    capital investment; create tens of thousands of
26    good-paying, union jobs, with more than 44,000 workers

 

 

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1    employed in offshore wind by 2030 and nearly 33,000
2    additional jobs in communities supported by offshore wind
3    activity; generate enough power to meet the demand of more
4    than 10,000,000 American homes for a year; and avoid
5    78,000,000 metric tons of carbon dioxide emissions.
6        (8) The United States Department of Transportation's
7    Maritime Administration has announced a Notice of Funding
8    Opportunity for port authorities and other applicants to
9    apply for $230,000,000 for port and intermodal
10    infrastructure-related projects through the Port
11    Infrastructure Development Program to support projects
12    that strengthen and modernize port infrastructure, and can
13    support shore-side wind energy projects, such as storage
14    areas, laydown areas, and docking of wind energy vessels
15    to load and move items to offshore wind farms.
16        (9) Extensive development of offshore wind on the East
17    Coast is making offshore wind costs more competitive.
18        (10) Lake Michigan is the fifth largest lake in the
19    world, with a total surface area of 22,404 square miles
20    across 4 states, with 1,576 square miles of surface area
21    in Illinois.
22        (11) The 1,576 square miles of Lake Michigan within
23    the boundaries of the State of Illinois have a potential
24    capacity of 4,528 megawatts of offshore wind.
25        (12) The State of Illinois has excellent and available
26    port infrastructure on the South Side of Chicago that can

 

 

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1    be used as a base for construction, operations, and
2    maintenance.
3        (13) The State of Illinois seeks a leadership position
4    in the offshore wind industry as it emerges in the Great
5    Lakes.
6        (14) Fostering development of a new industry on the
7    South Side of Chicago will help create jobs for the most
8    underserved and underrepresented segment of Illinois'
9    population.
10        (15) Offshore wind developments will attract
11    investment capital and will enable the development and
12    preservation of a skilled and trained construction
13    workforce to carry out projects, long-term job creation,
14    and development of an offshore wind energy supply chain.
15    Therefore, the General Assembly finds that it is necessary
16to enact this Act to enable the responsible creation of an
17offshore wind industry in the State of Illinois with the
18creation of a single 200 megawatt pilot project to provide
19economic and environmental benefits to the State of Illinois.
 
20    Section 10. Definitions. As used in this Act:
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Disproportionately impacted area" means a census tract or
24comparable geographic area that satisfies criteria as
25determined by the Department.

 

 

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1    "Minorities" has the same meaning as minority persons as
2defined in the Business Enterprise for Minorities, Women, and
3Persons with Disabilities Act.
4    "Offshore wind energy generation facility" means a wind
5renewable energy power generation facility that is located in
6Lake Michigan, is at least 200 megawatts in size, and is
7interconnected to PJM Interconnection's regional transmission
8system.
9    "Underrepresented populations" means populations
10identified by the Department that historically have had
11barriers to entry or advancement in the workforce and reside
12within a disproportionately impacted area that is within 3
13miles of the primary staging location of the subject project.
14"Underrepresented populations" includes, but is not limited
15to, minorities, women, and veterans.
 
16    Section 15. Rust Belt to Green Belt Fund; creation;
17distribution of proceeds.
18    (a) The Rust Belt to Green Belt Fund is created as a
19special fund in the State treasury. The Rust Belt to Green Belt
20Fund shall be administered by the Department and is created
21for the purpose of receiving and disbursing moneys in
22accordance with this Section. The Department may accept
23private and public funds, including federal funds, for deposit
24into the Rust Belt to Green Belt Fund.
25    (b) The Rust Belt to Green Belt Fund shall be used by the

 

 

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1Department to recruit and prepare underrepresented populations
2for careers in the building and construction trades to build
3clean energy, renewable energy, energy efficiency, climate
4change mitigation, and climate change adaptation construction
5projects.
6    Grants and other financial assistance may be made
7available on a competitive annual basis to organizations that
8demonstrate a capacity to recruit, prescreen, and provide
9appropriate preapprenticeship training to entities
10specifically focused on recruiting residents of
11disproportionately impacted areas, including, but not limited
12to, community based organizations, educational institutions,
13workforce investment boards, and community action agencies.
14    Grants and other financial assistance shall be awarded on
15a competitive and annual basis to organizations that provide
16the following:
17        (1) employment services to underrepresented
18    populations;
19        (2) recruiting, prescreening, and preapprenticeship
20    training to prepare underrepresented populations for a
21    career in clean energy in the construction and building
22    trades;
23        (3) preapprenticeship training to participants free of
24    charge and provide participants a stipend during the term
25    of the program;
26        (4) job placement services for participants during and

 

 

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1    after completion of the preapprenticeship program; and
2        (5) financial, administrative, and management
3    assistance for organizations engaged in these activities.
 
4    Section 20. Offshore wind generation.
5    (a) The developer of an offshore wind energy generation
6facility may apply to the Department for certification that it
7provides economic and environmental benefits to the State of
8Illinois in furtherance of the intent of the Act, including
9jobs for underrepresented populations. The Department shall
10consider issuing a certification to an applicant who has
11established:
12        (1) that the applicant has identified a suitable site
13    for its offshore wind energy generation facility and has a
14    comprehensive plan to develop, finance, construct, own,
15    and operate the facility;
16        (2) that the applicant or any of the applicant's
17    affiliates have experience and knowledge in owning an
18    offshore wind energy generation facility;
19        (3) that the applicant has an equity and inclusion
20    plan crafted to create opportunities for underrepresented
21    populations in the building and construction trades;
22        (4) that the applicant has the financial ability to
23    operate an offshore wind energy generation facility;
24        (5) that the applicant has a fully executed project
25    labor agreement with the applicable local building and

 

 

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1    construction trades council; and
2        (6) that the applicant has a comprehensive plan to
3    conduct essential research around the compatibility of
4    offshore wind and the lake ecology and historical lake
5    uses that can become the basis for future decision making
6    around prudent expansion of offshore wind into Lake
7    Michigan.
8    (b) Prior to issuing a certification to an applicant, the
9Department shall enter into an impact mitigation agreement
10with the applicant that contains construction and
11deconstruction standards and policies and appropriate
12financial assurance mechanisms for deconstruction or
13abandonment.
 
14    Section 25. Emergency rulemaking. To provide for the
15expeditious and timely implementation of this Act, emergency
16rules to implement any provision of this Act may be adopted by
17the Department subject to the provisions of Section 5-45 of
18the Illinois Administrative Procedure Act.
 
19    Section 80. The Illinois Administrative Procedure Act is
20amended by adding Sections 5-45.8 and 5-45.9 as follows:
 
21    (5 ILCS 100/5-45.8 new)
22    Sec. 5-45.8. Emergency rulemaking; Rust Belt to Green Belt
23Pilot Program Act. To provide for the expeditious and timely

 

 

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1implementation of the Rust Belt to Green Belt Pilot Program
2Act, emergency rules implementing the Rust Belt to Green Belt
3Pilot Program Act may be adopted in accordance with Section
45-45 by the Department of Commerce and Economic Opportunity.
5The adoption of emergency rules authorized by Section 5-45 and
6this Section is deemed to be necessary for the public
7interest, safety, and welfare.
8    This Section is repealed on January 1, 2027.
 
9    (5 ILCS 100/5-45.9 new)
10    Sec. 5-45.9. Emergency rulemaking; Illinois Power Agency
11Act. To provide for the expeditious and timely implementation
12of changes made to Section 1-75 of the Illinois Power Agency
13Act by this amendatory Act of the 102nd General Assembly,
14emergency rules implementing the changes made to Section 1-75
15of the Illinois Power Agency Act by this amendatory Act of the
16102nd General Assembly may be adopted in accordance with
17Section 5-45 by the Illinois Power Agency. The adoption of
18emergency rules authorized by Section 5-45 and this Section is
19deemed to be necessary for the public interest, safety, and
20welfare.
21    This Section is repealed on January 1, 2027.
 
22    Section 85. The Illinois Power Agency Act is amended by
23changing Section 1-75 as follows:
 

 

 

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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
10on December 31, 2005 provided electric service to at least
11100,000 customers in Illinois. Beginning with the delivery
12year commencing on June 1, 2017, the Planning and Procurement
13Bureau shall develop plans and processes for the procurement
14of zero emission credits from zero emission facilities in
15accordance with the requirements of subsection (d-5) of this
16Section. The Planning and Procurement Bureau shall also
17develop procurement plans and conduct competitive procurement
18processes in accordance with the requirements of Section
1916-111.5 of the Public Utilities Act for the eligible retail
20customers of small multi-jurisdictional electric utilities
21that (i) on December 31, 2005 served less than 100,000
22customers in Illinois and (ii) request a procurement plan for
23their Illinois jurisdictional load. This Section shall not
24apply to a small multi-jurisdictional utility until such time
25as a small multi-jurisdictional utility requests the Agency to
26prepare a procurement plan for their Illinois jurisdictional

 

 

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1load. For the purposes of this Section, the term "eligible
2retail customers" has the same definition as found in Section
316-111.5(a) of the Public Utilities Act.
4    Beginning with the plan or plans to be implemented in the
52017 delivery year, the Agency shall no longer include the
6procurement of renewable energy resources in the annual
7procurement plans required by this subsection (a), except as
8provided in subsection (q) of Section 16-111.5 of the Public
9Utilities Act, and shall instead develop a long-term renewable
10resources procurement plan in accordance with subsection (c)
11of this Section and Section 16-111.5 of the Public Utilities
12Act.
13        (1) The Agency shall each year, beginning in 2008, as
14    needed, issue a request for qualifications for experts or
15    expert consulting firms to develop the procurement plans
16    in accordance with Section 16-111.5 of the Public
17    Utilities Act. In order to qualify an expert or expert
18    consulting firm must have:
19            (A) direct previous experience assembling
20        large-scale power supply plans or portfolios for
21        end-use customers;
22            (B) an advanced degree in economics, mathematics,
23        engineering, risk management, or a related area of
24        study;
25            (C) 10 years of experience in the electricity
26        sector, including managing supply risk;

 

 

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

 

 

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

 

 

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1        The Agency shall remove experts or expert consulting
2    firms from the lists within 10 days if there is a
3    reasonable basis for an objection and provide the updated
4    lists to the affected utilities and other interested
5    parties. If the Agency fails to remove an expert or expert
6    consulting firm from a list, an objecting party may seek
7    review by the Commission within 5 days thereafter by
8    filing a petition, and the Commission shall render a
9    ruling on the petition within 10 days. There is no right of
10    appeal of the Commission's ruling.
11        (4) The Agency shall issue requests for proposals to
12    the qualified experts or expert consulting firms to
13    develop a procurement plan for the affected utilities and
14    to serve as procurement administrator.
15        (5) The Agency shall select an expert or expert
16    consulting firm to develop procurement plans based on the
17    proposals submitted and shall award contracts of up to 5
18    years to those selected.
19        (6) The Agency shall select an expert or expert
20    consulting firm, with approval of the Commission, to serve
21    as procurement administrator based on the proposals
22    submitted. If the Commission rejects, within 5 days, the
23    Agency's selection, the Agency shall submit another
24    recommendation within 3 days based on the proposals
25    submitted. The Agency shall award a 5-year contract to the
26    expert or expert consulting firm so selected with

 

 

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1    Commission approval.
2    (b) The experts or expert consulting firms retained by the
3Agency shall, as appropriate, prepare procurement plans, and
4conduct a competitive procurement process as prescribed in
5Section 16-111.5 of the Public Utilities Act, to ensure
6adequate, reliable, affordable, efficient, and environmentally
7sustainable electric service at the lowest total cost over
8time, taking into account any benefits of price stability, for
9eligible retail customers of electric utilities that on
10December 31, 2005 provided electric service to at least
11100,000 customers in the State of Illinois, and for eligible
12Illinois retail customers of small multi-jurisdictional
13electric utilities that (i) on December 31, 2005 served less
14than 100,000 customers in Illinois and (ii) request a
15procurement plan for their Illinois jurisdictional load.
16    (c) Renewable portfolio standard.
17        (1)(A) The Agency shall develop a long-term renewable
18    resources procurement plan that shall include procurement
19    programs and competitive procurement events necessary to
20    meet the goals set forth in this subsection (c). The
21    initial long-term renewable resources procurement plan
22    shall be released for comment no later than 160 days after
23    June 1, 2017 (the effective date of Public Act 99-906).
24    The Agency shall review, and may revise on an expedited
25    basis, the long-term renewable resources procurement plan
26    at least every 2 years, which shall be conducted in

 

 

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1    conjunction with the procurement plan under Section
2    16-111.5 of the Public Utilities Act to the extent
3    practicable to minimize administrative expense. The
4    long-term renewable resources procurement plans shall be
5    subject to review and approval by the Commission under
6    Section 16-111.5 of the Public Utilities Act.
7        (B) Subject to subparagraph (F) of this paragraph (1),
8    the long-term renewable resources procurement plan shall
9    include the goals for procurement of renewable energy
10    credits to meet at least the following overall
11    percentages: 13% by the 2017 delivery year; increasing by
12    at least 1.5% each delivery year thereafter to at least
13    25% by the 2025 delivery year; and continuing at no less
14    than 25% for each delivery year thereafter. In the event
15    of a conflict between these goals and the new wind and new
16    photovoltaic procurement requirements described in items
17    (i) through (iii) of subparagraph (C) of this paragraph
18    (1), the long-term plan shall prioritize compliance with
19    the new wind and new photovoltaic procurement requirements
20    described in items (i) through (iii) of subparagraph (C)
21    of this paragraph (1) over the annual percentage targets
22    described in this subparagraph (B).
23        For the delivery year beginning June 1, 2017, the
24    procurement plan shall include cost-effective renewable
25    energy resources equal to at least 13% of each utility's
26    load for eligible retail customers and 13% of the

 

 

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

 

 

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1    shall be used to meet the goals set forth in this
2    subsection (c) for the delivery year.
3        (C) Of the renewable energy credits procured under
4    this subsection (c), at least 75% shall come from wind and
5    photovoltaic projects. The long-term renewable resources
6    procurement plan described in subparagraph (A) of this
7    paragraph (1) shall include the procurement of renewable
8    energy credits in amounts equal to at least the following:
9            (i) By the end of the 2020 delivery year:
10                At least 2,000,000 renewable energy credits
11            for each delivery year shall come from new wind
12            projects; and
13                At least 2,000,000 renewable energy credits
14            for each delivery year shall come from new
15            photovoltaic projects; of that amount, to the
16            extent possible, the Agency shall procure: at
17            least 50% from solar photovoltaic projects using
18            the program outlined in subparagraph (K) of this
19            paragraph (1) from distributed renewable energy
20            generation devices or community renewable
21            generation projects; at least 40% from
22            utility-scale solar projects; at least 2% from
23            brownfield site photovoltaic projects that are not
24            community renewable generation projects; and the
25            remainder shall be determined through the
26            long-term planning process described in

 

 

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1            subparagraph (A) of this paragraph (1).
2            (ii) By the end of the 2025 delivery year:
3                At least 3,000,000 renewable energy credits
4            for each delivery year shall come from new wind
5            projects; and
6                At least 3,000,000 renewable energy credits
7            for each delivery year shall come from new
8            photovoltaic projects; of that amount, to the
9            extent possible, the Agency shall procure: at
10            least 50% from solar photovoltaic projects using
11            the program outlined in subparagraph (K) of this
12            paragraph (1) from distributed renewable energy
13            devices or community renewable generation
14            projects; at least 40% from utility-scale solar
15            projects; at least 2% from brownfield site
16            photovoltaic projects that are not community
17            renewable generation projects; and the remainder
18            shall be determined through the long-term planning
19            process described in subparagraph (A) of this
20            paragraph (1).
21            (iii) By the end of the 2030 delivery year:
22                At least 4,000,000 renewable energy credits
23            for each delivery year shall come from new wind
24            projects; and
25                At least 4,000,000 renewable energy credits
26            for each delivery year shall come from new

 

 

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1            photovoltaic projects; of that amount, to the
2            extent possible, the Agency shall procure: at
3            least 50% from solar photovoltaic projects using
4            the program outlined in subparagraph (K) of this
5            paragraph (1) from distributed renewable energy
6            devices or community renewable generation
7            projects; at least 40% from utility-scale solar
8            projects; at least 2% from brownfield site
9            photovoltaic projects that are not community
10            renewable generation projects; and the remainder
11            shall be determined through the long-term planning
12            process described in subparagraph (A) of this
13            paragraph (1).
14            For purposes of this Section:
15                "New wind projects" means wind renewable
16            energy facilities that are energized after June 1,
17            2017 for the delivery year commencing June 1, 2017
18            or within 3 years after the date the Commission
19            approves contracts for subsequent delivery years.
20                "New photovoltaic projects" means photovoltaic
21            renewable energy facilities that are energized
22            after June 1, 2017. Photovoltaic projects
23            developed under Section 1-56 of this Act shall not
24            apply towards the new photovoltaic project
25            requirements in this subparagraph (C).
26        (D) Renewable energy credits shall be cost effective.

 

 

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1    For purposes of this subsection (c), "cost effective"
2    means that the costs of procuring renewable energy
3    resources do not cause the limit stated in subparagraph
4    (E) of this paragraph (1) to be exceeded and, for
5    renewable energy credits procured through a competitive
6    procurement event, do not exceed benchmarks based on
7    market prices for like products in the region. For
8    purposes of this subsection (c), "like products" means
9    contracts for renewable energy credits from the same or
10    substantially similar technology, same or substantially
11    similar vintage (new or existing), the same or
12    substantially similar quantity, and the same or
13    substantially similar contract length and structure.
14    Benchmarks shall be developed by the procurement
15    administrator, in consultation with the Commission staff,
16    Agency staff, and the procurement monitor and shall be
17    subject to Commission review and approval. If price
18    benchmarks for like products in the region are not
19    available, the procurement administrator shall establish
20    price benchmarks based on publicly available data on
21    regional technology costs and expected current and future
22    regional energy prices. The benchmarks in this Section
23    shall not be used to curtail or otherwise reduce
24    contractual obligations entered into by or through the
25    Agency prior to June 1, 2017 (the effective date of Public
26    Act 99-906).

 

 

10200HB0691sam001- 22 -LRB102 10385 SPS 27196 a

1        (E) For purposes of this subsection (c), the required
2    procurement of cost-effective renewable energy resources
3    for a particular year commencing prior to June 1, 2017
4    shall be measured as a percentage of the actual amount of
5    electricity (megawatt-hours) supplied by the electric
6    utility to eligible retail customers in the delivery year
7    ending immediately prior to the procurement, and, for
8    delivery years commencing on and after June 1, 2017, the
9    required procurement of cost-effective renewable energy
10    resources for a particular year shall be measured as a
11    percentage of the actual amount of electricity
12    (megawatt-hours) delivered by the electric utility in the
13    delivery year ending immediately prior to the procurement,
14    to all retail customers in its service territory. For
15    purposes of this subsection (c), the amount paid per
16    kilowatthour means the total amount paid for electric
17    service expressed on a per kilowatthour basis. For
18    purposes of this subsection (c), the total amount paid for
19    electric service includes without limitation amounts paid
20    for supply, transmission, distribution, surcharges, and
21    add-on taxes.
22        Notwithstanding the requirements of this subsection
23    (c), the total of renewable energy resources procured
24    under the procurement plan for any single year shall be
25    subject to the limitations of this subparagraph (E). Such
26    procurement shall be reduced for all retail customers

 

 

10200HB0691sam001- 23 -LRB102 10385 SPS 27196 a

1    based on the amount necessary to limit the annual
2    estimated average net increase due to the costs of these
3    resources included in the amounts paid by eligible retail
4    customers in connection with electric service to no more
5    than the greater of 2.015% of the amount paid per
6    kilowatthour by those customers during the year ending May
7    31, 2007 or the incremental amount per kilowatthour paid
8    for these resources in 2011. To arrive at a maximum dollar
9    amount of renewable energy resources to be procured for
10    the particular delivery year, the resulting per
11    kilowatthour amount shall be applied to the actual amount
12    of kilowatthours of electricity delivered, or applicable
13    portion of such amount as specified in paragraph (1) of
14    this subsection (c), as applicable, by the electric
15    utility in the delivery year immediately prior to the
16    procurement to all retail customers in its service
17    territory. The calculations required by this subparagraph
18    (E) shall be made only once for each delivery year at the
19    time that the renewable energy resources are procured.
20    Once the determination as to the amount of renewable
21    energy resources to procure is made based on the
22    calculations set forth in this subparagraph (E) and the
23    contracts procuring those amounts are executed, no
24    subsequent rate impact determinations shall be made and no
25    adjustments to those contract amounts shall be allowed.
26    All costs incurred under such contracts shall be fully

 

 

10200HB0691sam001- 24 -LRB102 10385 SPS 27196 a

1    recoverable by the electric utility as provided in this
2    Section.
3        (F) If the limitation on the amount of renewable
4    energy resources procured in subparagraph (E) of this
5    paragraph (1) prevents the Agency from meeting all of the
6    goals in this subsection (c), the Agency's long-term plan
7    shall prioritize compliance with the requirements of this
8    subsection (c) regarding renewable energy credits in the
9    following order:
10            (i) renewable energy credits under existing
11        contractual obligations;
12            (i-5) funding for the Illinois Solar for All
13        Program, as described in subparagraph (O) of this
14        paragraph (1);
15            (ii) renewable energy credits necessary to comply
16        with the new wind and new photovoltaic procurement
17        requirements described in items (i) through (iii) of
18        subparagraph (C) of this paragraph (1); and
19            (iii) renewable energy credits necessary to meet
20        the remaining requirements of this subsection (c).
21        (G) The following provisions shall apply to the
22    Agency's procurement of renewable energy credits under
23    this subsection (c):
24            (i) Notwithstanding whether a long-term renewable
25        resources procurement plan has been approved, the
26        Agency shall conduct an initial forward procurement

 

 

10200HB0691sam001- 25 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 26 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 27 -LRB102 10385 SPS 27196 a

1        renewable energy credits delivered from all new wind
2        projects in each delivery year shall not exceed the
3        Agency's projection of the cumulative amount of
4        renewable energy credits that will be delivered from
5        all new photovoltaic projects, including utility-scale
6        and distributed photovoltaic devices, in the same
7        delivery year at the time scheduled for wind contract
8        delivery.
9            (iv) If, at any time after the time set for
10        delivery of renewable energy credits pursuant to the
11        initial procurements in items (i) and (ii) of this
12        subparagraph (G), the cumulative amount of renewable
13        energy credits projected to be delivered from all new
14        wind projects in a given delivery year exceeds the
15        cumulative amount of renewable energy credits
16        projected to be delivered from all new photovoltaic
17        projects in that delivery year by 200,000 or more
18        renewable energy credits, then the Agency shall within
19        60 days adjust the procurement programs in the
20        long-term renewable resources procurement plan to
21        ensure that the projected cumulative amount of
22        renewable energy credits to be delivered from all new
23        wind projects does not exceed the projected cumulative
24        amount of renewable energy credits to be delivered
25        from all new photovoltaic projects by 200,000 or more
26        renewable energy credits, provided that nothing in

 

 

10200HB0691sam001- 28 -LRB102 10385 SPS 27196 a

1        this Section shall preclude the projected cumulative
2        amount of renewable energy credits to be delivered
3        from all new photovoltaic projects from exceeding the
4        projected cumulative amount of renewable energy
5        credits to be delivered from all new wind projects in
6        each delivery year and provided further that nothing
7        in this item (iv) shall require the curtailment of an
8        executed contract. The Agency shall update, on a
9        quarterly basis, its projection of the renewable
10        energy credits to be delivered from all projects in
11        each delivery year. Notwithstanding anything to the
12        contrary, the Agency may adjust the timing of
13        procurement events conducted under this subparagraph
14        (G). The long-term renewable resources procurement
15        plan shall set forth the process by which the
16        adjustments may be made.
17            (v) All procurements under this subparagraph (G)
18        shall comply with the geographic requirements in
19        subparagraph (I) of this paragraph (1) and shall
20        follow the procurement processes and procedures
21        described in this Section and Section 16-111.5 of the
22        Public Utilities Act to the extent practicable, and
23        these processes and procedures may be expedited to
24        accommodate the schedule established by this
25        subparagraph (G).
26        (H) The procurement of renewable energy resources for

 

 

10200HB0691sam001- 29 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 30 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 31 -LRB102 10385 SPS 27196 a

1                For delivery years beginning June 1, 2019 and
2            each year thereafter, the maximum amount of
3            renewable energy credits to be supplied by an
4            alternative retail electric supplier under this
5            subparagraph (H) shall be 68% multiplied by 50%
6            multiplied by 16% multiplied by the amount of
7            metered electricity (megawatt-hours) delivered by
8            the alternative retail electric supplier to
9            Illinois retail customers during the delivery year
10            ending May 31, 2016, provided that the 16% value
11            shall increase by 1.5% each delivery year
12            thereafter to 25% by the delivery year beginning
13            June 1, 2025, and thereafter the 25% value shall
14            apply to each delivery year.
15            For each delivery year, the total amount of
16        renewable energy credits supplied by all alternative
17        retail electric suppliers under this subparagraph (H)
18        shall not exceed 9% of the Illinois target renewable
19        energy credit quantity. The Illinois target renewable
20        energy credit quantity for the delivery year beginning
21        June 1, 2018 is 14.5% multiplied by the total amount of
22        metered electricity (megawatt-hours) delivered in the
23        delivery year immediately preceding that delivery
24        year, provided that the 14.5% shall increase by 1.5%
25        each delivery year thereafter to 25% by the delivery
26        year beginning June 1, 2025, and thereafter the 25%

 

 

10200HB0691sam001- 32 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 33 -LRB102 10385 SPS 27196 a

1    in the health, safety, and welfare of its residents,
2    including but not limited to minimizing sulfur dioxide,
3    nitrogen oxide, particulate matter and other pollution
4    that adversely affects public health in this State,
5    increasing fuel and resource diversity in this State,
6    enhancing the reliability and resiliency of the
7    electricity distribution system in this State, meeting
8    goals to limit carbon dioxide emissions under federal or
9    State law, and contributing to a cleaner and healthier
10    environment for the citizens of this State. In order to
11    further these legislative purposes, renewable energy
12    credits shall be eligible to be counted toward the
13    renewable energy requirements of this subsection (c) if
14    they are generated from facilities located in this State.
15    The Agency may qualify renewable energy credits from
16    facilities located in states adjacent to Illinois if the
17    generator demonstrates and the Agency determines that the
18    operation of such facility or facilities will help promote
19    the State's interest in the health, safety, and welfare of
20    its residents based on the public interest criteria
21    described above. To ensure that the public interest
22    criteria are applied to the procurement and given full
23    effect, the Agency's long-term procurement plan shall
24    describe in detail how each public interest factor shall
25    be considered and weighted for facilities located in
26    states adjacent to Illinois.

 

 

10200HB0691sam001- 34 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 35 -LRB102 10385 SPS 27196 a

1    units that are constructed, purchased, owned, or leased by
2    an electric utility as part of an approved project,
3    program, or pilot under Section 1-56 of this Act shall be
4    eligible to be counted toward the renewable energy
5    requirements of this subsection (c), regardless of how the
6    costs of these units are recovered.
7        (K) The long-term renewable resources procurement plan
8    developed by the Agency in accordance with subparagraph
9    (A) of this paragraph (1) shall include an Adjustable
10    Block program for the procurement of renewable energy
11    credits from new photovoltaic projects that are
12    distributed renewable energy generation devices or new
13    photovoltaic community renewable generation projects. The
14    Adjustable Block program shall be designed to provide a
15    transparent schedule of prices and quantities to enable
16    the photovoltaic market to scale up and for renewable
17    energy credit prices to adjust at a predictable rate over
18    time. The prices set by the Adjustable Block program can
19    be reflected as a set value or as the product of a formula.
20        The Adjustable Block program shall include for each
21    category of eligible projects: a schedule of standard
22    block purchase prices to be offered; a series of steps,
23    with associated nameplate capacity and purchase prices
24    that adjust from step to step; and automatic opening of
25    the next step as soon as the nameplate capacity and
26    available purchase prices for an open step are fully

 

 

10200HB0691sam001- 36 -LRB102 10385 SPS 27196 a

1    committed or reserved. Only projects energized on or after
2    June 1, 2017 shall be eligible for the Adjustable Block
3    program. For each block group the Agency shall determine
4    the number of blocks, the amount of generation capacity in
5    each block, and the purchase price for each block,
6    provided that the purchase price provided and the total
7    amount of generation in all blocks for all block groups
8    shall be sufficient to meet the goals in this subsection
9    (c). The Agency may periodically review its prior
10    decisions establishing the number of blocks, the amount of
11    generation capacity in each block, and the purchase price
12    for each block, and may propose, on an expedited basis,
13    changes to these previously set values, including but not
14    limited to redistributing these amounts and the available
15    funds as necessary and appropriate, subject to Commission
16    approval as part of the periodic plan revision process
17    described in Section 16-111.5 of the Public Utilities Act.
18    The Agency may define different block sizes, purchase
19    prices, or other distinct terms and conditions for
20    projects located in different utility service territories
21    if the Agency deems it necessary to meet the goals in this
22    subsection (c).
23        The Adjustable Block program shall include at least
24    the following block groups in at least the following
25    amounts, which may be adjusted upon review by the Agency
26    and approval by the Commission as described in this

 

 

10200HB0691sam001- 37 -LRB102 10385 SPS 27196 a

1    subparagraph (K):
2            (i) At least 25% from distributed renewable energy
3        generation devices with a nameplate capacity of no
4        more than 10 kilowatts.
5            (ii) At least 25% from distributed renewable
6        energy generation devices with a nameplate capacity of
7        more than 10 kilowatts and no more than 2,000
8        kilowatts. The Agency may create sub-categories within
9        this category to account for the differences between
10        projects for small commercial customers, large
11        commercial customers, and public or non-profit
12        customers.
13            (iii) At least 25% from photovoltaic community
14        renewable generation projects.
15            (iv) The remaining 25% shall be allocated as
16        specified by the Agency in the long-term renewable
17        resources procurement plan.
18        The Adjustable Block program shall be designed to
19    ensure that renewable energy credits are procured from
20    photovoltaic distributed renewable energy generation
21    devices and new photovoltaic community renewable energy
22    generation projects in diverse locations and are not
23    concentrated in a few geographic areas.
24        (L) The procurement of photovoltaic renewable energy
25    credits under items (i) through (iv) of subparagraph (K)
26    of this paragraph (1) shall be subject to the following

 

 

10200HB0691sam001- 38 -LRB102 10385 SPS 27196 a

1    contract and payment terms:
2            (i) The Agency shall procure contracts of at least
3        15 years in length.
4            (ii) For those renewable energy credits that
5        qualify and are procured under item (i) of
6        subparagraph (K) of this paragraph (1), the renewable
7        energy credit purchase price shall be paid in full by
8        the contracting utilities at the time that the
9        facility producing the renewable energy credits is
10        interconnected at the distribution system level of the
11        utility and energized. The electric utility shall
12        receive and retire all renewable energy credits
13        generated by the project for the first 15 years of
14        operation.
15            (iii) For those renewable energy credits that
16        qualify and are procured under item (ii) and (iii) of
17        subparagraph (K) of this paragraph (1) and any
18        additional categories of distributed generation
19        included in the long-term renewable resources
20        procurement plan and approved by the Commission, 20
21        percent of the renewable energy credit purchase price
22        shall be paid by the contracting utilities at the time
23        that the facility producing the renewable energy
24        credits is interconnected at the distribution system
25        level of the utility and energized. The remaining
26        portion shall be paid ratably over the subsequent

 

 

10200HB0691sam001- 39 -LRB102 10385 SPS 27196 a

1        4-year period. The electric utility shall receive and
2        retire all renewable energy credits generated by the
3        project for the first 15 years of operation.
4            (iv) Each contract shall include provisions to
5        ensure the delivery of the renewable energy credits
6        for the full term of the contract.
7            (v) The utility shall be the counterparty to the
8        contracts executed under this subparagraph (L) that
9        are approved by the Commission under the process
10        described in Section 16-111.5 of the Public Utilities
11        Act. No contract shall be executed for an amount that
12        is less than one renewable energy credit per year.
13            (vi) If, at any time, approved applications for
14        the Adjustable Block program exceed funds collected by
15        the electric utility or would cause the Agency to
16        exceed the limitation described in subparagraph (E) of
17        this paragraph (1) on the amount of renewable energy
18        resources that may be procured, then the Agency shall
19        consider future uncommitted funds to be reserved for
20        these contracts on a first-come, first-served basis,
21        with the delivery of renewable energy credits required
22        beginning at the time that the reserved funds become
23        available.
24            (vii) Nothing in this Section shall require the
25        utility to advance any payment or pay any amounts that
26        exceed the actual amount of revenues collected by the

 

 

10200HB0691sam001- 40 -LRB102 10385 SPS 27196 a

1        utility under paragraph (6) of this subsection (c) and
2        subsection (k) of Section 16-108 of the Public
3        Utilities Act, and contracts executed under this
4        Section shall expressly incorporate this limitation.
5        (M) The Agency shall be authorized to retain one or
6    more experts or expert consulting firms to develop,
7    administer, implement, operate, and evaluate the
8    Adjustable Block program described in subparagraph (K) of
9    this paragraph (1), and the Agency shall retain the
10    consultant or consultants in the same manner, to the
11    extent practicable, as the Agency retains others to
12    administer provisions of this Act, including, but not
13    limited to, the procurement administrator. The selection
14    of experts and expert consulting firms and the procurement
15    process described in this subparagraph (M) are exempt from
16    the requirements of Section 20-10 of the Illinois
17    Procurement Code, under Section 20-10 of that Code. The
18    Agency shall strive to minimize administrative expenses in
19    the implementation of the Adjustable Block program.
20        The Agency and its consultant or consultants shall
21    monitor block activity, share program activity with
22    stakeholders and conduct regularly scheduled meetings to
23    discuss program activity and market conditions. If
24    necessary, the Agency may make prospective administrative
25    adjustments to the Adjustable Block program design, such
26    as redistributing available funds or making adjustments to

 

 

10200HB0691sam001- 41 -LRB102 10385 SPS 27196 a

1    purchase prices as necessary to achieve the goals of this
2    subsection (c). Program modifications to any price,
3    capacity block, or other program element that do not
4    deviate from the Commission's approved value by more than
5    25% shall take effect immediately and are not subject to
6    Commission review and approval. Program modifications to
7    any price, capacity block, or other program element that
8    deviate more than 25% from the Commission's approved value
9    must be approved by the Commission as a long-term plan
10    amendment under Section 16-111.5 of the Public Utilities
11    Act. The Agency shall consider stakeholder feedback when
12    making adjustments to the Adjustable Block design and
13    shall notify stakeholders in advance of any planned
14    changes.
15        (N) The long-term renewable resources procurement plan
16    required by this subsection (c) shall include a community
17    renewable generation program. The Agency shall establish
18    the terms, conditions, and program requirements for
19    community renewable generation projects with a goal to
20    expand renewable energy generating facility access to a
21    broader group of energy consumers, to ensure robust
22    participation opportunities for residential and small
23    commercial customers and those who cannot install
24    renewable energy on their own properties. Any plan
25    approved by the Commission shall allow subscriptions to
26    community renewable generation projects to be portable and

 

 

10200HB0691sam001- 42 -LRB102 10385 SPS 27196 a

1    transferable. For purposes of this subparagraph (N),
2    "portable" means that subscriptions may be retained by the
3    subscriber even if the subscriber relocates or changes its
4    address within the same utility service territory; and
5    "transferable" means that a subscriber may assign or sell
6    subscriptions to another person within the same utility
7    service territory.
8        Electric utilities shall provide a monetary credit to
9    a subscriber's subsequent bill for service for the
10    proportional output of a community renewable generation
11    project attributable to that subscriber as specified in
12    Section 16-107.5 of the Public Utilities Act.
13        The Agency shall purchase renewable energy credits
14    from subscribed shares of photovoltaic community renewable
15    generation projects through the Adjustable Block program
16    described in subparagraph (K) of this paragraph (1) or
17    through the Illinois Solar for All Program described in
18    Section 1-56 of this Act. The electric utility shall
19    purchase any unsubscribed energy from community renewable
20    generation projects that are Qualifying Facilities ("QF")
21    under the electric utility's tariff for purchasing the
22    output from QFs under Public Utilities Regulatory Policies
23    Act of 1978.
24        The owners of and any subscribers to a community
25    renewable generation project shall not be considered
26    public utilities or alternative retail electricity

 

 

10200HB0691sam001- 43 -LRB102 10385 SPS 27196 a

1    suppliers under the Public Utilities Act solely as a
2    result of their interest in or subscription to a community
3    renewable generation project and shall not be required to
4    become an alternative retail electric supplier by
5    participating in a community renewable generation project
6    with a public utility.
7        (O) For the delivery year beginning June 1, 2018, the
8    long-term renewable resources procurement plan required by
9    this subsection (c) shall provide for the Agency to
10    procure contracts to continue offering the Illinois Solar
11    for All Program described in subsection (b) of Section
12    1-56 of this Act, and the contracts approved by the
13    Commission shall be executed by the utilities that are
14    subject to this subsection (c). The long-term renewable
15    resources procurement plan shall allocate 5% of the funds
16    available under the plan for the applicable delivery year,
17    or $10,000,000 per delivery year, whichever is greater, to
18    fund the programs, and the plan shall determine the amount
19    of funding to be apportioned to the programs identified in
20    subsection (b) of Section 1-56 of this Act; provided that
21    for the delivery years beginning June 1, 2017, June 1,
22    2021, and June 1, 2025, the long-term renewable resources
23    procurement plan shall allocate 10% of the funds available
24    under the plan for the applicable delivery year, or
25    $20,000,000 per delivery year, whichever is greater, and
26    $10,000,000 of such funds in such year shall be used by an

 

 

10200HB0691sam001- 44 -LRB102 10385 SPS 27196 a

1    electric utility that serves more than 3,000,000 retail
2    customers in the State to implement a Commission-approved
3    plan under Section 16-108.12 of the Public Utilities Act.
4    In making the determinations required under this
5    subparagraph (O), the Commission shall consider the
6    experience and performance under the programs and any
7    evaluation reports. The Commission shall also provide for
8    an independent evaluation of those programs on a periodic
9    basis that are funded under this subparagraph (O).
10        (P) The Agency shall adopt rules to procure sourcing
11    agreements with electric utilities and alternative retail
12    electric suppliers required to comply with subsection (c)
13    of this Section and paragraph (5) of subsection (d) of
14    Section 16-115 of the Public Utilities Act to procure
15    electricity from an offshore wind energy generation
16    facility that has been certified by the Department of
17    Commerce and Economic Opportunity pursuant to Section 20
18    of the Rust Belt to Green Belt Pilot Program Act.
19        To provide for the expeditious and timely
20    implementation of this subparagraph (P), emergency rules
21    to implement this subparagraph (P) may be adopted by the
22    Agency subject to the provisions of Section 5-45 of the
23    Illinois Administrative Procedure Act.
24        (2) (Blank).
25        (3) (Blank).
26        (4) The electric utility shall retire all renewable

 

 

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

 

 

10200HB0691sam001- 46 -LRB102 10385 SPS 27196 a

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

 

 

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

 

 

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

 

 

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

 

 

10200HB0691sam001- 50 -LRB102 10385 SPS 27196 a

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

 

 

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

 

 

10200HB0691sam001- 52 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 53 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 54 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 55 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 56 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 57 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 58 -LRB102 10385 SPS 27196 a

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

 

 

10200HB0691sam001- 59 -LRB102 10385 SPS 27196 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10200HB0691sam001- 76 -LRB102 10385 SPS 27196 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        If the subtraction yields a negative number, then the
2    Average ZEC Payment shall be zero.
3        (4) Cost-effective zero emission credits procured from
4    zero emission facilities shall satisfy the applicable
5    definitions set forth in Section 1-10 of this Act.
6        (5) The electric utility shall retire all zero
7    emission credits used to comply with the requirements of
8    this subsection (d-5).
9        (6) Electric utilities shall be entitled to recover
10    all of the costs associated with the procurement of zero
11    emission credits through an automatic adjustment clause
12    tariff in accordance with subsection (k) and (m) of
13    Section 16-108 of the Public Utilities Act, and the
14    contracts executed under this subsection (d-5) shall
15    provide that the utilities' payment obligations under such
16    contracts shall be reduced if an adjustment is required
17    under subsection (m) of Section 16-108 of the Public
18    Utilities Act.
19        (7) This subsection (d-5) shall become inoperative on
20    January 1, 2028.
21    (e) The draft procurement plans are subject to public
22comment, as required by Section 16-111.5 of the Public
23Utilities Act.
24    (f) The Agency shall submit the final procurement plan to
25the Commission. The Agency shall revise a procurement plan if
26the Commission determines that it does not meet the standards

 

 

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1set forth in Section 16-111.5 of the Public Utilities Act.
2    (g) The Agency shall assess fees to each affected utility
3to recover the costs incurred in preparation of the annual
4procurement plan for the utility.
5    (h) The Agency shall assess fees to each bidder to recover
6the costs incurred in connection with a competitive
7procurement process.
8    (i) A renewable energy credit, carbon emission credit, or
9zero emission credit can only be used once to comply with a
10single portfolio or other standard as set forth in subsection
11(c), subsection (d), or subsection (d-5) of this Section,
12respectively. A renewable energy credit, carbon emission
13credit, or zero emission credit cannot be used to satisfy the
14requirements of more than one standard. If more than one type
15of credit is issued for the same megawatt hour of energy, only
16one credit can be used to satisfy the requirements of a single
17standard. After such use, the credit must be retired together
18with any other credits issued for the same megawatt hour of
19energy.
20(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19;
21101-113, eff. 1-1-20.)
 
22    Section 90. The State Finance Act is amended by adding
23Section 5.935 as follows:
 
24    (30 ILCS 105/5.935 new)

 

 

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1    Sec. 5.935. The Rust Belt to Green Belt Fund.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".