SB1699 Enrolled LRB103 27684 AMQ 54061 b
1		AN ACT concerning regulation.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Freedom of Information Act is amended by
5		changing Section 7.5 as follows:
6		(5 ILCS 140/7.5)
7		Sec. 7.5. Statutory exemptions. To the extent provided for
8		by the statutes referenced below, the following shall be
9		exempt from inspection and copying:
10		(a) All information determined to be confidential
11		under Section 4002 of the Technology Advancement and
12		Development Act.
13		(b) Library circulation and order records identifying
14		library users with specific materials under the Library
15		Records Confidentiality Act.
16		(c) Applications, related documents, and medical
17		records received by the Experimental Organ Transplantation
18		Procedures Board and any and all documents or other
19		records prepared by the Experimental Organ Transplantation
20		Procedures Board or its staff relating to applications it
21		has received.
22		(d) Information and records held by the Department of
23		Public Health and its authorized representatives relating

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1		to known or suspected cases of sexually transmissible
2		disease or any information the disclosure of which is
3		restricted under the Illinois Sexually Transmissible
4		Disease Control Act.
5		(e) Information the disclosure of which is exempted
6		under Section 30 of the Radon Industry Licensing Act.
7		(f) Firm performance evaluations under Section 55 of
8		the Architectural, Engineering, and Land Surveying
9		Qualifications Based Selection Act.
10		(g) Information the disclosure of which is restricted
11		and exempted under Section 50 of the Illinois Prepaid
12		Tuition Act.
13		(h) Information the disclosure of which is exempted
14		under the State Officials and Employees Ethics Act, and
15		records of any lawfully created State or local inspector
16		general's office that would be exempt if created or
17		obtained by an Executive Inspector General's office under
18		that Act.
19		(i) Information contained in a local emergency energy
20		plan submitted to a municipality in accordance with a
21		local emergency energy plan ordinance that is adopted
22		under Section 11-21.5-5 of the Illinois Municipal Code.
23		(j) Information and data concerning the distribution
24		of surcharge moneys collected and remitted by carriers
25		under the Emergency Telephone System Act.
26		(k) Law enforcement officer identification information

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1		or driver identification information compiled by a law
2		enforcement agency or the Department of Transportation
3		under Section 11-212 of the Illinois Vehicle Code.
4		(l) Records and information provided to a residential
5		health care facility resident sexual assault and death
6		review team or the Executive Council under the Abuse
7		Prevention Review Team Act.
8		(m) Information provided to the predatory lending
9		database created pursuant to Article 3 of the Residential
10		Real Property Disclosure Act, except to the extent
11		authorized under that Article.
12		(n) Defense budgets and petitions for certification of
13		compensation and expenses for court appointed trial
14		counsel as provided under Sections 10 and 15 of the
15		Capital Crimes Litigation Act. This subsection (n) shall
16		apply until the conclusion of the trial of the case, even
17		if the prosecution chooses not to pursue the death penalty
18		prior to trial or sentencing.
19		(o) Information that is prohibited from being
20		disclosed under Section 4 of the Illinois Health and
21		Hazardous Substances Registry Act.
22		(p) Security portions of system safety program plans,
23		investigation reports, surveys, schedules, lists, data, or
24		information compiled, collected, or prepared by or for the
25		Department of Transportation under Sections 2705-300 and
26		2705-616 of the Department of Transportation Law of the

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1		Civil Administrative Code of Illinois, the Regional
2		Transportation Authority under Section 2.11 of the
3		Regional Transportation Authority Act, or the St. Clair
4		County Transit District under the Bi-State Transit Safety
5		Act.
6		(q) Information prohibited from being disclosed by the
7		Personnel Record Review Act.
8		(r) Information prohibited from being disclosed by the
9		Illinois School Student Records Act.
10		(s) Information the disclosure of which is restricted
11		under Section 5-108 of the Public Utilities Act.
12		(t) All identified or deidentified health information
13		in the form of health data or medical records contained
14		in, stored in, submitted to, transferred by, or released
15		from the Illinois Health Information Exchange, and
16		identified or deidentified health information in the form
17		of health data and medical records of the Illinois Health
18		Information Exchange in the possession of the Illinois
19		Health Information Exchange Office due to its
20		administration of the Illinois Health Information
21		Exchange. The terms "identified" and "deidentified" shall
22		be given the same meaning as in the Health Insurance
23		Portability and Accountability Act of 1996, Public Law
24		104-191, or any subsequent amendments thereto, and any
25		regulations promulgated thereunder.
26		(u) Records and information provided to an independent

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1		team of experts under the Developmental Disability and
2		Mental Health Safety Act (also known as Brian's Law).
3		(v) Names and information of people who have applied
4		for or received Firearm Owner's Identification Cards under
5		the Firearm Owners Identification Card Act or applied for
6		or received a concealed carry license under the Firearm
7		Concealed Carry Act, unless otherwise authorized by the
8		Firearm Concealed Carry Act; and databases under the
9		Firearm Concealed Carry Act, records of the Concealed
10		Carry Licensing Review Board under the Firearm Concealed
11		Carry Act, and law enforcement agency objections under the
12		Firearm Concealed Carry Act.
13		(v-5) Records of the Firearm Owner's Identification
14		Card Review Board that are exempted from disclosure under
15		Section 10 of the Firearm Owners Identification Card Act.
16		(w) Personally identifiable information which is
17		exempted from disclosure under subsection (g) of Section
18		19.1 of the Toll Highway Act.
19		(x) Information which is exempted from disclosure
20		under Section 5-1014.3 of the Counties Code or Section
21		8-11-21 of the Illinois Municipal Code.
22		(y) Confidential information under the Adult
23		Protective Services Act and its predecessor enabling
24		statute, the Elder Abuse and Neglect Act, including
25		information about the identity and administrative finding
26		against any caregiver of a verified and substantiated

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1		decision of abuse, neglect, or financial exploitation of
2		an eligible adult maintained in the Registry established
3		under Section 7.5 of the Adult Protective Services Act.
4		(z) Records and information provided to a fatality
5		review team or the Illinois Fatality Review Team Advisory
6		Council under Section 15 of the Adult Protective Services
7		Act.
8		(aa) Information which is exempted from disclosure
9		under Section 2.37 of the Wildlife Code.
10		(bb) Information which is or was prohibited from
11		disclosure by the Juvenile Court Act of 1987.
12		(cc) Recordings made under the Law Enforcement
13		Officer-Worn Body Camera Act, except to the extent
14		authorized under that Act.
15		(dd) Information that is prohibited from being
16		disclosed under Section 45 of the Condominium and Common
17		Interest Community Ombudsperson Act.
18		(ee) Information that is exempted from disclosure
19		under Section 30.1 of the Pharmacy Practice Act.
20		(ff) Information that is exempted from disclosure
21		under the Revised Uniform Unclaimed Property Act.
22		(gg) Information that is prohibited from being
23		disclosed under Section 7-603.5 of the Illinois Vehicle
24		Code.
25		(hh) Records that are exempt from disclosure under
26		Section 1A-16.7 of the Election Code.

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1		(ii) Information which is exempted from disclosure
2		under Section 2505-800 of the Department of Revenue Law of
3		the Civil Administrative Code of Illinois.
4		(jj) Information and reports that are required to be
5		submitted to the Department of Labor by registering day
6		and temporary labor service agencies but are exempt from
7		disclosure under subsection (a-1) of Section 45 of the Day
8		and Temporary Labor Services Act.
9		(kk) Information prohibited from disclosure under the
10		Seizure and Forfeiture Reporting Act.
11		(ll) Information the disclosure of which is restricted
12		and exempted under Section 5-30.8 of the Illinois Public
13		Aid Code.
14		(mm) Records that are exempt from disclosure under
15		Section 4.2 of the Crime Victims Compensation Act.
16		(nn) Information that is exempt from disclosure under
17		Section 70 of the Higher Education Student Assistance Act.
18		(oo) Communications, notes, records, and reports
19		arising out of a peer support counseling session
20		prohibited from disclosure under the First Responders
21		Suicide Prevention Act.
22		(pp) Names and all identifying information relating to
23		an employee of an emergency services provider or law
24		enforcement agency under the First Responders Suicide
25		Prevention Act.
26		(qq) Information and records held by the Department of

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1		Public Health and its authorized representatives collected
2		under the Reproductive Health Act.
3		(rr) Information that is exempt from disclosure under
4		the Cannabis Regulation and Tax Act.
5		(ss) Data reported by an employer to the Department of
6		Human Rights pursuant to Section 2-108 of the Illinois
7		Human Rights Act.
8		(tt) Recordings made under the Children's Advocacy
9		Center Act, except to the extent authorized under that
10		Act.
11		(uu) Information that is exempt from disclosure under
12		Section 50 of the Sexual Assault Evidence Submission Act.
13		(vv) Information that is exempt from disclosure under
14		subsections (f) and (j) of Section 5-36 of the Illinois
15		Public Aid Code.
16		(ww) Information that is exempt from disclosure under
17		Section 16.8 of the State Treasurer Act.
18		(xx) Information that is exempt from disclosure or
19		information that shall not be made public under the
20		Illinois Insurance Code.
21		(yy) Information prohibited from being disclosed under
22		the Illinois Educational Labor Relations Act.
23		(zz) Information prohibited from being disclosed under
24		the Illinois Public Labor Relations Act.
25		(aaa) Information prohibited from being disclosed
26		under Section 1-167 of the Illinois Pension Code.

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1		(bbb) Information that is prohibited from disclosure
2		by the Illinois Police Training Act and the Illinois State
3		Police Act.
4		(ccc) Records exempt from disclosure under Section
5		2605-304 of the Illinois State Police Law of the Civil
6		Administrative Code of Illinois.
7		(ddd) Information prohibited from being disclosed
8		under Section 35 of the Address Confidentiality for
9		Victims of Domestic Violence, Sexual Assault, Human
10		Trafficking, or Stalking Act.
11		(eee) Information prohibited from being disclosed
12		under subsection (b) of Section 75 of the Domestic
13		Violence Fatality Review Act.
14		(fff) Images from cameras under the Expressway Camera
15		Act. This subsection (fff) is inoperative on and after
16		July 1, 2023.
17		(ggg) Information prohibited from disclosure under
18		paragraph (3) of subsection (a) of Section 14 of the Nurse
19		Agency Licensing Act.
20		(hhh) Information submitted to the Illinois Department
21		of State Police in an affidavit or application for an
22		assault weapon endorsement, assault weapon attachment
23		endorsement, .50 caliber rifle endorsement, or .50 caliber
24		cartridge endorsement under the Firearm Owners
25		Identification Card Act.
26		(iii) Information prohibited from being disclosed

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1		under subsection (e) of Section 1-129 of the Illinois
2		Power Agency Act.
3		(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
4		101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
5		1-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
6		eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
7		101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
8		1-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
9		eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
10		102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
11		7-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
12		2-13-23.)
13		Section 10. The Illinois Power Agency Act is amended by
14		changing Section 1-75 and adding Section 1-129 as follows:
15		(20 ILCS 3855/1-75)
16		(Text of Section before amendment by P.A. 103-380)
17		Sec. 1-75. Planning and Procurement Bureau. The Planning
18		and Procurement Bureau has the following duties and
19		responsibilities:
20		(a) The Planning and Procurement Bureau shall each year,
21		beginning in 2008, develop procurement plans and conduct
22		competitive procurement processes in accordance with the
23		requirements of Section 16-111.5 of the Public Utilities Act
24		for the eligible retail customers of electric utilities that

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

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1		Beginning with the plan or plans to be implemented in the
2		2017 delivery year, the Agency shall no longer include the
3		procurement of renewable energy resources in the annual
4		procurement plans required by this subsection (a), except as
5		provided in subsection (q) of Section 16-111.5 of the Public
6		Utilities Act, and shall instead develop a long-term renewable
7		resources procurement plan in accordance with subsection (c)
8		of this Section and Section 16-111.5 of the Public Utilities
9		Act.
10		In accordance with subsection (c-5) of this Section, the
11		Planning and Procurement Bureau shall oversee the procurement
12		by electric utilities that served more than 300,000 retail
13		customers in this State as of January 1, 2019 of renewable
14		energy credits from new utility-scale solar projects to be
15		installed, along with energy storage facilities, at or
16		adjacent to the sites of electric generating facilities that,
17		as of January 1, 2016, burned coal as their primary fuel
18		source.
19		(1) The Agency shall each year, beginning in 2008, as
20		needed, issue a request for qualifications for experts or
21		expert consulting firms to develop the procurement plans
22		in accordance with Section 16-111.5 of the Public
23		Utilities Act. In order to qualify an expert or expert
24		consulting firm must have:
25		(A) direct previous experience assembling
26		large-scale power supply plans or portfolios for

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

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

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

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

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1		initial long-term renewable resources procurement plan
2		shall be released for comment no later than 160 days after
3		June 1, 2017 (the effective date of Public Act 99-906).
4		The Agency shall review, and may revise on an expedited
5		basis, the long-term renewable resources procurement plan
6		at least every 2 years, which shall be conducted in
7		conjunction with the procurement plan under Section
8		16-111.5 of the Public Utilities Act to the extent
9		practicable to minimize administrative expense. No later
10		than 120 days after the effective date of this amendatory
11		Act of the 102nd General Assembly, the Agency shall
12		release for comment a revision to the long-term renewable
13		resources procurement plan, updating elements of the most
14		recently approved plan as needed to comply with this
15		amendatory Act of the 102nd General Assembly, and any
16		long-term renewable resources procurement plan update
17		published by the Agency but not yet approved by the
18		Illinois Commerce Commission shall be withdrawn. The
19		long-term renewable resources procurement plans shall be
20		subject to review and approval by the Commission under
21		Section 16-111.5 of the Public Utilities Act.
22		(B) Subject to subparagraph (F) of this paragraph (1),
23		the long-term renewable resources procurement plan shall
24		attempt to meet the goals for procurement of renewable
25		energy credits at levels of at least the following overall
26		percentages: 13% by the 2017 delivery year; increasing by

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

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1		customers and 13% of the applicable portion of each
2		utility's load for retail customers who are not eligible
3		retail customers, which applicable portion shall equal 50%
4		of the utility's load for retail customers who are not
5		eligible retail customers on February 28, 2017.
6		For the delivery year beginning June 1, 2018, the
7		procurement plan shall attempt to include, subject to the
8		prioritization outlined in this subparagraph (B),
9		cost-effective renewable energy resources equal to at
10		least 14.5% of each utility's load for eligible retail
11		customers and 14.5% of the applicable portion of each
12		utility's load for retail customers who are not eligible
13		retail customers, which applicable portion shall equal 75%
14		of the utility's load for retail customers who are not
15		eligible retail customers on February 28, 2017.
16		For the delivery year beginning June 1, 2019, and for
17		each year thereafter, the procurement plans shall attempt
18		to include, subject to the prioritization outlined in this
19		subparagraph (B), cost-effective renewable energy
20		resources equal to a minimum percentage of each utility's
21		load for all retail customers as follows: 16% by June 1,
22		2019; increasing by 1.5% each year thereafter to 25% by
23		June 1, 2025; and 25% by June 1, 2026; increasing by at
24		least 3% each delivery year thereafter to at least 40% by
25		the 2030 delivery year, and continuing at no less than 40%
26		for each delivery year thereafter. The Agency shall

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1		attempt to procure 50% by delivery year 2040. The Agency
2		shall determine the annual increase between delivery year
3		2030 and delivery year 2040, if any, taking into account
4		energy demand, other energy resources, and other public
5		policy goals.
6		For each delivery year, the Agency shall first
7		recognize each utility's obligations for that delivery
8		year under existing contracts. Any renewable energy
9		credits under existing contracts, including renewable
10		energy credits as part of renewable energy resources,
11		shall be used to meet the goals set forth in this
12		subsection (c) for the delivery year.
13		(C) The long-term renewable resources procurement plan
14		described in subparagraph (A) of this paragraph (1) shall
15		include the procurement of renewable energy credits from
16		new projects in amounts equal to at least the following:
17		(i) 10,000,000 renewable energy credits delivered
18		annually by the end of the 2021 delivery year, and
19		increasing ratably to reach 45,000,000 renewable
20		energy credits delivered annually from new wind and
21		solar projects by the end of delivery year 2030 such
22		that the goals in subparagraph (B) of this paragraph
23		(1) are met entirely by procurements of renewable
24		energy credits from new wind and photovoltaic
25		projects. Of that amount, to the extent possible, the
26		Agency shall procure 45% from wind projects and 55%

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1		from photovoltaic projects. Of the amount to be
2		procured from photovoltaic projects, the Agency shall
3		procure: at least 50% from solar photovoltaic projects
4		using the program outlined in subparagraph (K) of this
5		paragraph (1) from distributed renewable energy
6		generation devices or community renewable generation
7		projects; at least 47% from utility-scale solar
8		projects; at least 3% from brownfield site
9		photovoltaic projects that are not community renewable
10		generation projects.
11		In developing the long-term renewable resources
12		procurement plan, the Agency shall consider other
13		approaches, in addition to competitive procurements,
14		that can be used to procure renewable energy credits
15		from brownfield site photovoltaic projects and thereby
16		help return blighted or contaminated land to
17		productive use while enhancing public health and the
18		well-being of Illinois residents, including those in
19		environmental justice communities, as defined using
20		existing methodologies and findings used by the Agency
21		and its Administrator in its Illinois Solar for All
22		Program.
23		(ii) In any given delivery year, if forecasted
24		expenses are less than the maximum budget available
25		under subparagraph (E) of this paragraph (1), the
26		Agency shall continue to procure new renewable energy

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

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

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1		regional energy prices. The benchmarks in this Section
2		shall not be used to curtail or otherwise reduce
3		contractual obligations entered into by or through the
4		Agency prior to June 1, 2017 (the effective date of Public
5		Act 99-906).
6		(E) For purposes of this subsection (c), the required
7		procurement of cost-effective renewable energy resources
8		for a particular year commencing prior to June 1, 2017
9		shall be measured as a percentage of the actual amount of
10		electricity (megawatt-hours) supplied by the electric
11		utility to eligible retail customers in the delivery year
12		ending immediately prior to the procurement, and, for
13		delivery years commencing on and after June 1, 2017, the
14		required procurement of cost-effective renewable energy
15		resources for a particular year shall be measured as a
16		percentage of the actual amount of electricity
17		(megawatt-hours) delivered by the electric utility in the
18		delivery year ending immediately prior to the procurement,
19		to all retail customers in its service territory. For
20		purposes of this subsection (c), the amount paid per
21		kilowatthour means the total amount paid for electric
22		service expressed on a per kilowatthour basis. For
23		purposes of this subsection (c), the total amount paid for
24		electric service includes without limitation amounts paid
25		for supply, transmission, capacity, distribution,
26		surcharges, and add-on taxes.

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1		Notwithstanding the requirements of this subsection
2		(c), the total of renewable energy resources procured
3		under the procurement plan for any single year shall be
4		subject to the limitations of this subparagraph (E). Such
5		procurement shall be reduced for all retail customers
6		based on the amount necessary to limit the annual
7		estimated average net increase due to the costs of these
8		resources included in the amounts paid by eligible retail
9		customers in connection with electric service to no more
10		than 4.25% of the amount paid per kilowatthour by those
11		customers during the year ending May 31, 2009. To arrive
12		at a maximum dollar amount of renewable energy resources
13		to be procured for the particular delivery year, the
14		resulting per kilowatthour amount shall be applied to the
15		actual amount of kilowatthours of electricity delivered,
16		or applicable portion of such amount as specified in
17		paragraph (1) of this subsection (c), as applicable, by
18		the electric utility in the delivery year immediately
19		prior to the procurement to all retail customers in its
20		service territory. The calculations required by this
21		subparagraph (E) shall be made only once for each delivery
22		year at the time that the renewable energy resources are
23		procured. Once the determination as to the amount of
24		renewable energy resources to procure is made based on the
25		calculations set forth in this subparagraph (E) and the
26		contracts procuring those amounts are executed, no

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1		subsequent rate impact determinations shall be made and no
2		adjustments to those contract amounts shall be allowed.
3		All costs incurred under such contracts shall be fully
4		recoverable by the electric utility as provided in this
5		Section.
6		(F) If the limitation on the amount of renewable
7		energy resources procured in subparagraph (E) of this
8		paragraph (1) prevents the Agency from meeting all of the
9		goals in this subsection (c), the Agency's long-term plan
10		shall prioritize compliance with the requirements of this
11		subsection (c) regarding renewable energy credits in the
12		following order:
13		(i) renewable energy credits under existing
14		contractual obligations as of June 1, 2021;
15		(i-5) funding for the Illinois Solar for All
16		Program, as described in subparagraph (O) of this
17		paragraph (1);
18		(ii) renewable energy credits necessary to comply
19		with the new wind and new photovoltaic procurement
20		requirements described in items (i) through (iii) of
21		subparagraph (C) of this paragraph (1); and
22		(iii) renewable energy credits necessary to meet
23		the remaining requirements of this subsection (c).
24		(G) The following provisions shall apply to the
25		Agency's procurement of renewable energy credits under
26		this subsection (c):

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

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

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1		procurement plan revision described in Section
2		16-111.5 of the Public Utilities Act, the Agency shall
3		conduct at least one subsequent forward procurement
4		for renewable energy credits from new utility-scale
5		wind projects, new utility-scale solar projects, and
6		new brownfield site photovoltaic projects within 240
7		days after the effective date of this amendatory Act
8		of the 102nd General Assembly in quantities necessary
9		to meet the requirements of subparagraph (C) of this
10		paragraph (1) through the delivery year beginning June
11		1, 2021.
12		(iv) Notwithstanding whether the Commission has
13		approved the periodic long-term renewable resources
14		procurement plan revision described in Section
15		16-111.5 of the Public Utilities Act, the Agency shall
16		open capacity for each category in the Adjustable
17		Block program within 90 days after the effective date
18		of this amendatory Act of the 102nd General Assembly
19		manner:
20		(1) The Agency shall open the first block of
21		annual capacity for the category described in item
22		(i) of subparagraph (K) of this paragraph (1). The
23		first block of annual capacity for item (i) shall
24		be for at least 75 megawatts of total nameplate
25		capacity. The price of the renewable energy credit
26		for this block of capacity shall be 4% less than

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

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

SB1699 Enrolled - 32 - LRB103 27684 AMQ 54061 b
1		facility producing the renewable energy
2		credits is interconnected at the distribution
3		system level of the utility and verified as
4		energized by the Program Administrator. The
5		remaining portion shall be paid ratably over
6		the subsequent 4-year period. The electric
7		utility shall receive and retire all renewable
8		energy credits generated by the project during
9		the first 15 years of operation. Renewable
10		energy credits generated by the project
11		thereafter shall not be transferred under the
12		renewable energy credit delivery contract with
13		the counterparty electric utility.
14		(B) The price of renewable energy credits
15		for any project not on the waitlist for this
16		category before the opening of the block shall
17		be determined and published by the Agency.
18		Projects not on a waitlist as of the opening
19		of this block shall be subject to the
20		requirements of subparagraph (Q) of this
21		paragraph (1), as applicable. Projects not on
22		a waitlist as of the opening of this block
23		shall be subject to the contract provisions
24		outlined in item (iii) of subparagraph (L) of
25		this paragraph (1). The Agency shall strive to
26		publish updated prices and an updated

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1		renewable energy credit delivery contract as
2		quickly as possible.
3		(3) For opening the first 2 blocks of annual
4		capacity for projects participating in item (iii)
5		of subparagraph (K) of paragraph (1) of subsection
6		(c), projects shall be selected exclusively from
7		those projects on the ordinal waitlists of
8		community renewable generation projects
9		established by the Agency based on the status of
10		those ordinal waitlists as of December 31, 2020,
11		and only those projects previously determined to
12		be eligible for the Agency's April 2019 community
13		solar project selection process.
14		The first 2 blocks of annual capacity for item
15		(iii) shall be for 250 megawatts of total
16		nameplate capacity, with both blocks opening
17		simultaneously under the schedule outlined in the
18		paragraphs below. Projects shall be selected as
19		follows:
20		(A) The geographic balance of selected
21		projects shall follow the Group classification
22		found in the Agency's Revised Long-Term
23		Renewable Resources Procurement Plan, with 70%
24		of capacity allocated to projects on the Group
25		B waitlist and 30% of capacity allocated to
26		projects on the Group A waitlist.

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1		(B) Contract awards for waitlisted
2		projects shall be allocated proportionate to
3		the total nameplate capacity amount across
4		both ordinal waitlists associated with that
5		applicant firm or its affiliates, subject to
6		the following conditions.
7		(i) Each applicant firm having a
8		waitlisted project eligible for selection
9		shall receive no less than 500 kilowatts
10		in awarded capacity across all groups, and
11		no approved vendor may receive more than
12		20% of each Group's waitlist allocation.
13		(ii) Each applicant firm, upon
14		receiving an award of program capacity
15		proportionate to its waitlisted capacity,
16		may then determine which waitlisted
17		projects it chooses to be selected for a
18		contract award up to that capacity amount.
19		(iii) Assuming all other program
20		requirements are met, applicant firms may
21		adjust the nameplate capacity of applicant
22		projects without losing waitlist
23		eligibility, so long as no project is
24		greater than 2,000 kilowatts in size.
25		(iv) Assuming all other program
26		requirements are met, applicant firms may

SB1699 Enrolled - 35 - LRB103 27684 AMQ 54061 b
1		adjust the expected production associated
2		with applicant projects, subject to
3		verification by the Program Administrator.
4		(C) After a review of affiliate
5		information and the current ordinal waitlists,
6		the Agency shall announce the nameplate
7		capacity award amounts associated with
8		applicant firms no later than 90 days after
9		the effective date of this amendatory Act of
10		the 102nd General Assembly.
11		(D) Applicant firms shall submit their
12		portfolio of projects used to satisfy those
13		contract awards no less than 90 days after the
14		Agency's announcement. The total nameplate
15		capacity of all projects used to satisfy that
16		portfolio shall be no greater than the
17		Agency's nameplate capacity award amount
18		associated with that applicant firm. An
19		applicant firm may decline, in whole or in
20		part, its nameplate capacity award without
21		penalty, with such unmet capacity rolled over
22		to the next block opening for project
23		selection under item (iii) of subparagraph (K)
24		of this subsection (c). Any projects not
25		included in an applicant firm's portfolio may
26		reapply without prejudice upon the next block

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1		reopening for project selection under item
2		(iii) of subparagraph (K) of this subsection
3		(c).
4		(E) The renewable energy credit delivery
5		contract shall be subject to the contract and
6		payment terms outlined in item (iv) of
7		subparagraph (L) of this subsection (c).
8		Contract instruments used for this
9		subparagraph shall contain the following
10		terms:
11		(i) Renewable energy credit prices
12		shall be fixed, without further adjustment
13		under any other provision of this Act or
14		for any other reason, at 10% lower than
15		prices applicable to the last open block
16		for this category, inclusive of any adders
17		available for achieving a minimum of 50%
18		of subscribers to the project's nameplate
19		capacity being residential or small
20		commercial customers with subscriptions of
21		below 25 kilowatts in size;
22		(ii) A requirement that a minimum of
23		50% of subscribers to the project's
24		nameplate capacity be residential or small
25		commercial customers with subscriptions of
26		below 25 kilowatts in size;

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1		(iii) Permission for the ability of a
2		contract holder to substitute projects
3		with other waitlisted projects without
4		penalty should a project receive a
5		non-binding estimate of costs to construct
6		the interconnection facilities and any
7		required distribution upgrades associated
8		with that project of greater than 30 cents
9		per watt AC of that project's nameplate
10		capacity. In developing the applicable
11		contract instrument, the Agency may
12		consider whether other circumstances
13		outside of the control of the applicant
14		firm should also warrant project
15		substitution rights.
16		The Agency shall publish a finalized
17		updated renewable energy credit delivery
18		contract developed consistent with these terms
19		and conditions no less than 30 days before
20		applicant firms must submit their portfolio of
21		projects pursuant to item (D).
22		(F) To be eligible for an award, the
23		applicant firm shall certify that not less
24		than prevailing wage, as determined pursuant
25		to the Illinois Prevailing Wage Act, was or
26		will be paid to employees who are engaged in

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1		construction activities associated with a
2		selected project.
3		(4) The Agency shall open the first block of
4		annual capacity for the category described in item
5		(iv) of subparagraph (K) of this paragraph (1).
6		The first block of annual capacity for item (iv)
7		shall be for at least 50 megawatts of total
8		nameplate capacity. Renewable energy credit prices
9		shall be fixed, without further adjustment under
10		any other provision of this Act or for any other
11		reason, at the price in the last open block in the
12		category described in item (ii) of subparagraph
13		(K) of this paragraph (1). Pricing for future
14		blocks of annual capacity for this category may be
15		adjusted in the Agency's second revision to its
16		Long-Term Renewable Resources Procurement Plan.
17		Projects in this category shall be subject to the
18		contract terms outlined in item (iv) of
19		subparagraph (L) of this paragraph (1).
20		(5) The Agency shall open the equivalent of 2
21		years of annual capacity for the category
22		described in item (v) of subparagraph (K) of this
23		paragraph (1). The first block of annual capacity
24		for item (v) shall be for at least 10 megawatts of
25		total nameplate capacity. Notwithstanding the
26		provisions of item (v) of subparagraph (K) of this

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

SB1699 Enrolled - 40 - LRB103 27684 AMQ 54061 b
1		paragraph (1). Pricing for future blocks of annual
2		capacity for this category may be adjusted in the
3		Agency's second revision to its Long-Term
4		Renewable Resources Procurement Plan. Projects in
5		this category shall be subject to the applicable
6		contract terms outlined in items (ii) and (iii) of
7		subparagraph (L) of this paragraph (1).
8		(v) Upon the effective date of this amendatory Act
9		of the 102nd General Assembly, for all competitive
10		procurements and any procurements of renewable energy
11		credit from new utility-scale wind and new
12		utility-scale photovoltaic projects, the Agency shall
13		procure indexed renewable energy credits and direct
14		respondents to offer a strike price.
15		(1) The purchase price of the indexed
16		renewable energy credit payment shall be
17		calculated for each settlement period. That
18		payment, for any settlement period, shall be equal
19		to the difference resulting from subtracting the
20		strike price from the index price for that
21		settlement period. If this difference results in a
22		negative number, the indexed REC counterparty
23		shall owe the seller the absolute value multiplied
24		by the quantity of energy produced in the relevant
25		settlement period. If this difference results in a
26		positive number, the seller shall owe the indexed

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

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

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1		collar on REC prices paid under indexed renewable
2		energy credit procurements establishing floor and
3		ceiling REC prices applicable to indexed REC
4		contract prices. Any price collars applicable to
5		indexed REC procurements shall be proposed by the
6		Agency through its long-term renewable resources
7		procurement plan.
8		(vi) All procurements under this subparagraph (G)
9		shall comply with the geographic requirements in
10		subparagraph (I) of this paragraph (1) and shall
11		follow the procurement processes and procedures
12		described in this Section and Section 16-111.5 of the
13		Public Utilities Act to the extent practicable, and
14		these processes and procedures may be expedited to
15		accommodate the schedule established by this
16		subparagraph (G).
17		(H) The procurement of renewable energy resources for
18		a given delivery year shall be reduced as described in
19		this subparagraph (H) if an alternative retail electric
20		supplier meets the requirements described in this
21		subparagraph (H).
22		(i) Within 45 days after June 1, 2017 (the
23		effective date of Public Act 99-906), an alternative
24		retail electric supplier or its successor shall submit
25		an informational filing to the Illinois Commerce
26		Commission certifying that, as of December 31, 2015,

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1		the alternative retail electric supplier owned one or
2		more electric generating facilities that generates
3		renewable energy resources as defined in Section 1-10
4		of this Act, provided that such facilities are not
5		powered by wind or photovoltaics, and the facilities
6		generate one renewable energy credit for each
7		megawatthour of energy produced from the facility.
8		The informational filing shall identify each
9		facility that was eligible to satisfy the alternative
10		retail electric supplier's obligations under Section
11		16-115D of the Public Utilities Act as described in
12		this item (i).
13		(ii) For a given delivery year, the alternative
14		retail electric supplier may elect to supply its
15		retail customers with renewable energy credits from
16		the facility or facilities described in item (i) of
17		this subparagraph (H) that continue to be owned by the
18		alternative retail electric supplier.
19		(iii) The alternative retail electric supplier
20		shall notify the Agency and the applicable utility, no
21		later than February 28 of the year preceding the
22		applicable delivery year or 15 days after June 1, 2017
23		(the effective date of Public Act 99-906), whichever
24		is later, of its election under item (ii) of this
25		subparagraph (H) to supply renewable energy credits to
26		retail customers of the utility. Such election shall

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1		identify the amount of renewable energy credits to be
2		supplied by the alternative retail electric supplier
3		to the utility's retail customers and the source of
4		the renewable energy credits identified in the
5		informational filing as described in item (i) of this
6		subparagraph (H), subject to the following
7		limitations:
8		For the delivery year beginning June 1, 2018,
9		the maximum amount of renewable energy credits to
10		be supplied by an alternative retail electric
11		supplier under this subparagraph (H) shall be 68%
12		multiplied by 25% multiplied by 14.5% multiplied
13		by the amount of metered electricity
14		(megawatt-hours) delivered by the alternative
15		retail electric supplier to Illinois retail
16		customers during the delivery year ending May 31,
17		2016.
18		For delivery years beginning June 1, 2019 and
19		each year thereafter, the maximum amount of
20		renewable energy credits to be supplied by an
21		alternative retail electric supplier under this
22		subparagraph (H) shall be 68% multiplied by 50%
23		multiplied by 16% multiplied by the amount of
24		metered electricity (megawatt-hours) delivered by
25		the alternative retail electric supplier to
26		Illinois retail customers during the delivery year

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1		ending May 31, 2016, provided that the 16% value
2		shall increase by 1.5% each delivery year
3		thereafter to 25% by the delivery year beginning
4		June 1, 2025, and thereafter the 25% value shall
5		apply to each delivery year.
6		For each delivery year, the total amount of
7		renewable energy credits supplied by all alternative
8		retail electric suppliers under this subparagraph (H)
9		shall not exceed 9% of the Illinois target renewable
10		energy credit quantity. The Illinois target renewable
11		energy credit quantity for the delivery year beginning
12		June 1, 2018 is 14.5% multiplied by the total amount of
13		metered electricity (megawatt-hours) delivered in the
14		delivery year immediately preceding that delivery
15		year, provided that the 14.5% shall increase by 1.5%
16		each delivery year thereafter to 25% by the delivery
17		year beginning June 1, 2025, and thereafter the 25%
18		value shall apply to each delivery year.
19		If the requirements set forth in items (i) through
20		(iii) of this subparagraph (H) are met, the charges
21		that would otherwise be applicable to the retail
22		customers of the alternative retail electric supplier
23		under paragraph (6) of this subsection (c) for the
24		applicable delivery year shall be reduced by the ratio
25		of the quantity of renewable energy credits supplied
26		by the alternative retail electric supplier compared

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1		to that supplier's target renewable energy credit
2		quantity. The supplier's target renewable energy
3		credit quantity for the delivery year beginning June
4		1, 2018 is 14.5% multiplied by the total amount of
5		metered electricity (megawatt-hours) delivered by the
6		alternative retail supplier in that delivery year,
7		provided that the 14.5% shall increase by 1.5% each
8		delivery year thereafter to 25% by the delivery year
9		beginning June 1, 2025, and thereafter the 25% value
10		shall apply to each delivery year.
11		On or before April 1 of each year, the Agency shall
12		annually publish a report on its website that
13		identifies the aggregate amount of renewable energy
14		credits supplied by alternative retail electric
15		suppliers under this subparagraph (H).
16		(I) The Agency shall design its long-term renewable
17		energy procurement plan to maximize the State's interest
18		in the health, safety, and welfare of its residents,
19		including but not limited to minimizing sulfur dioxide,
20		nitrogen oxide, particulate matter and other pollution
21		that adversely affects public health in this State,
22		increasing fuel and resource diversity in this State,
23		enhancing the reliability and resiliency of the
24		electricity distribution system in this State, meeting
25		goals to limit carbon dioxide emissions under federal or
26		State law, and contributing to a cleaner and healthier

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1		environment for the citizens of this State. In order to
2		further these legislative purposes, renewable energy
3		credits shall be eligible to be counted toward the
4		renewable energy requirements of this subsection (c) if
5		they are generated from facilities located in this State.
6		The Agency may qualify renewable energy credits from
7		facilities located in states adjacent to Illinois or
8		renewable energy credits associated with the electricity
9		generated by a utility-scale wind energy facility or
10		utility-scale photovoltaic facility and transmitted by a
11		qualifying direct current project described in subsection
12		(b-5) of Section 8-406 of the Public Utilities Act to a
13		delivery point on the electric transmission grid located
14		in this State or a state adjacent to Illinois, if the
15		generator demonstrates and the Agency determines that the
16		operation of such facility or facilities will help promote
17		the State's interest in the health, safety, and welfare of
18		its residents based on the public interest criteria
19		described above. For the purposes of this Section,
20		renewable resources that are delivered via a high voltage
21		direct current converter station located in Illinois shall
22		be deemed generated in Illinois at the time and location
23		the energy is converted to alternating current by the high
24		voltage direct current converter station if the high
25		voltage direct current transmission line: (i) after the
26		effective date of this amendatory Act of the 102nd General

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1		Assembly, was constructed with a project labor agreement;
2		(ii) is capable of transmitting electricity at 525kv;
3		(iii) has an Illinois converter station located and
4		interconnected in the region of the PJM Interconnection,
5		LLC; (iv) does not operate as a public utility; and (v) if
6		the high voltage direct current transmission line was
7		energized after June 1, 2023. To ensure that the public
8		interest criteria are applied to the procurement and given
9		full effect, the Agency's long-term procurement plan shall
10		describe in detail how each public interest factor shall
11		be considered and weighted for facilities located in
12		states adjacent to Illinois.
13		(J) In order to promote the competitive development of
14		renewable energy resources in furtherance of the State's
15		interest in the health, safety, and welfare of its
16		residents, renewable energy credits shall not be eligible
17		to be counted toward the renewable energy requirements of
18		this subsection (c) if they are sourced from a generating
19		unit whose costs were being recovered through rates
20		regulated by this State or any other state or states on or
21		after January 1, 2017. Each contract executed to purchase
22		renewable energy credits under this subsection (c) shall
23		provide for the contract's termination if the costs of the
24		generating unit supplying the renewable energy credits
25		subsequently begin to be recovered through rates regulated
26		by this State or any other state or states; and each

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1		contract shall further provide that, in that event, the
2		supplier of the credits must return 110% of all payments
3		received under the contract. Amounts returned under the
4		requirements of this subparagraph (J) shall be retained by
5		the utility and all of these amounts shall be used for the
6		procurement of additional renewable energy credits from
7		new wind or new photovoltaic resources as defined in this
8		subsection (c). The long-term plan shall provide that
9		these renewable energy credits shall be procured in the
10		next procurement event.
11		Notwithstanding the limitations of this subparagraph
12		(J), renewable energy credits sourced from generating
13		units that are constructed, purchased, owned, or leased by
14		an electric utility as part of an approved project,
15		program, or pilot under Section 1-56 of this Act shall be
16		eligible to be counted toward the renewable energy
17		requirements of this subsection (c), regardless of how the
18		costs of these units are recovered. As long as a
19		generating unit or an identifiable portion of a generating
20		unit has not had and does not have its costs recovered
21		through rates regulated by this State or any other state,
22		HVDC renewable energy credits associated with that
23		generating unit or identifiable portion thereof shall be
24		eligible to be counted toward the renewable energy
25		requirements of this subsection (c).
26		(K) The long-term renewable resources procurement plan

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

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1		each category for each delivery year the Agency shall
2		determine the amount of generation capacity in each block,
3		and the purchase price for each block, provided that the
4		purchase price provided and the total amount of generation
5		in all blocks for all categories shall be sufficient to
6		meet the goals in this subsection (c). The Agency shall
7		strive to issue a single block sized to provide for
8		stability and market growth. The Agency shall establish
9		program eligibility requirements that ensure that projects
10		that enter the program are sufficiently mature to indicate
11		a demonstrable path to completion. The Agency may
12		periodically review its prior decisions establishing the
13		amount of generation capacity in each block, and the
14		purchase price for each block, and may propose, on an
15		expedited basis, changes to these previously set values,
16		including but not limited to redistributing these amounts
17		and the available funds as necessary and appropriate,
18		subject to Commission approval as part of the periodic
19		plan revision process described in Section 16-111.5 of the
20		Public Utilities Act. The Agency may define different
21		block sizes, purchase prices, or other distinct terms and
22		conditions for projects located in different utility
23		service territories if the Agency deems it necessary to
24		meet the goals in this subsection (c).
25		The Adjustable Block program shall include the
26		following categories in at least the following amounts:

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

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1		projects that are submitted at the same time;
2		(2) projects shall have subscriptions of 25 kW
3		or less for at least 50% of the facility's
4		nameplate capacity and the Agency shall price the
5		renewable energy credits with that as a factor;
6		(3) projects shall not be colocated with one
7		or more other community renewable generation
8		projects, as defined in the Agency's first revised
9		long-term renewable resources procurement plan
10		approved by the Commission on February 18, 2020,
11		such that the aggregate nameplate capacity exceeds
12		5,000 kilowatts; and
13		(4) projects greater than 2 MW may not apply
14		until after the approval of the Agency's revised
15		Long-Term Renewable Resources Procurement Plan
16		after the effective date of this amendatory Act of
17		the 102nd General Assembly.
18		(iv) At least 15% from distributed renewable
19		generation devices or photovoltaic community renewable
20		generation projects installed on at public school land
21		schools. The Agency may create subcategories within
22		this category to account for the differences between
23		project size or location. Projects located within
24		environmental justice communities or within
25		Organizational Units that fall within Tier 1 or Tier 2
26		shall be given priority. Each of the Agency's periodic

SB1699 Enrolled - 55 - LRB103 27684 AMQ 54061 b
1		updates to its long-term renewable resources
2		procurement plan to incorporate the procurement
3		described in this subparagraph (iv) shall also include
4		the proposed quantities or blocks, pricing, and
5		contract terms applicable to the procurement as
6		indicated herein. In each such update and procurement,
7		the Agency shall set the renewable energy credit price
8		and establish payment terms for the renewable energy
9		credits procured pursuant to this subparagraph (iv)
10		that make it feasible and affordable for public
11		schools to install photovoltaic distributed renewable
12		energy devices on their premises, including, but not
13		limited to, those public schools subject to the
14		prioritization provisions of this subparagraph. For
15		the purposes of this item (iv):
16		"Environmental Justice Community" shall have the
17		same meaning set forth in the Agency's long-term
18		renewable resources procurement plan;
19		"Organization Unit", "Tier 1" and "Tier 2" shall
20		have the meanings set for in Section 18-8.15 of the
21		School Code;
22		"Public schools" shall have the meaning set forth
23		in Section 1-3 of the School Code and includes public
24		institutions of higher education, as defined in the
25		Board of Higher Education Act.
26		(v) At least 5% from community-driven community

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

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1		entities, or community members; and
2		(5) whether a project is developed in response
3		to a site-specific RFP developed by community
4		members or a nonprofit organization or public
5		entity located in or serving the community.
6		Selection criteria may also prioritize projects
7		that:
8		(1) are developed in collaboration with or to
9		provide complementary opportunities for the Clean
10		Jobs Workforce Network Program, the Illinois
11		Climate Works Preapprenticeship Program, the
12		Returning Residents Clean Jobs Training Program,
13		the Clean Energy Contractor Incubator Program, or
14		the Clean Energy Primes Contractor Accelerator
15		Program;
16		(2) increase the diversity of locations of
17		community solar projects in Illinois, including by
18		locating in urban areas and population centers;
19		(3) are located in Equity Investment Eligible
20		Communities;
21		(4) are not greenfield projects;
22		(5) serve only local subscribers;
23		(6) have a nameplate capacity that does not
24		exceed 500 kW;
25		(7) are developed by an equity eligible
26		contractor; or

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

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1		members of the community to which an electric
2		generating facility provides benefits; members of that
3		community participate in decisions regarding the
4		governance, operation, maintenance, and upgrades of
5		and to that facility; and members of that community
6		benefit from regular use of that facility.
7		Terms and guidance within these criteria that are
8		not defined in this item (v) shall be defined by the
9		Agency, with stakeholder input, during the development
10		of the Agency's long-term renewable resources
11		procurement plan. The Agency shall develop regular
12		opportunities for projects to submit applications for
13		projects under this category, and develop selection
14		criteria that gives preference to projects that better
15		meet individual criteria as well as projects that
16		address a higher number of criteria.
17		(vi) At least 10% from distributed renewable
18		energy generation devices, which includes distributed
19		renewable energy devices with a nameplate capacity
20		under 5,000 kilowatts or photovoltaic community
21		renewable generation projects, from applicants that
22		are equity eligible contractors. The Agency may create
23		subcategories within this category to account for the
24		differences between project size and type. The Agency
25		shall propose to increase the percentage in this item
26		(vi) over time to 40% based on factors, including, but

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

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1		contract, including ongoing collateral requirements
2		and other provisions deemed necessary by the Agency,
3		and may include energization timelines longer than for
4		comparable project types. The percentage or amount of
5		capital advanced prior to project energization shall
6		not operate to increase the overall contract value,
7		however contracts executed under this subparagraph may
8		feature renewable energy credit prices higher than
9		those offered to similar projects participating in
10		other categories. Capital advanced prior to
11		energization shall serve to reduce the ratable
12		payments made after energization under items (ii) and
13		(iii) of subparagraph (L) or payments made for each
14		renewable energy credit delivery under item (iv) of
15		subparagraph (L).
16		(vii) The remaining capacity shall be allocated by
17		the Agency in order to respond to market demand. The
18		Agency shall allocate any discretionary capacity prior
19		to the beginning of each delivery year.
20		To the extent there is uncontracted capacity from any
21		block in any of categories (i) through (vi) at the end of a
22		delivery year, the Agency shall redistribute that capacity
23		to one or more other categories giving priority to
24		categories with projects on a waitlist. The redistributed
25		capacity shall be added to the annual capacity in the
26		subsequent delivery year, and the price for renewable

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

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

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1		utility and verified as energized and compliant by the
2		Program Administrator. The remaining portion shall be
3		paid ratably over the subsequent 6-year period. The
4		electric utility shall receive and retire all
5		renewable energy credits generated by the project for
6		the first 15 years of operation. Renewable energy
7		credits generated by the project thereafter shall not
8		be transferred under the renewable energy credit
9		delivery contract with the counterparty electric
10		utility.
11		(iv) For those renewable energy credits that
12		qualify and are procured under items (iii) and (iv) of
13		subparagraph (K) of this paragraph (1), and any like
14		projects that qualify and are procured under item
15		(vi), the renewable energy credit delivery contract
16		length shall be 20 years and shall be paid over the
17		delivery term, not to exceed during each delivery year
18		the contract price multiplied by the estimated annual
19		renewable energy credit generation amount. If
20		generation of renewable energy credits during a
21		delivery year exceeds the estimated annual generation
22		amount, the excess renewable energy credits shall be
23		carried forward to future delivery years and shall not
24		expire during the delivery term. If generation of
25		renewable energy credits during a delivery year,
26		including carried forward excess renewable energy

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1		credits, if any, is less than the estimated annual
2		generation amount, payments during such delivery year
3		will not exceed the quantity generated plus the
4		quantity carried forward multiplied by the contract
5		price. The electric utility shall receive all
6		renewable energy credits generated by the project
7		during the first 20 years of operation and retire all
8		renewable energy credits paid for under this item (iv)
9		and return at the end of the delivery term all
10		renewable energy credits that were not paid for.
11		Renewable energy credits generated by the project
12		thereafter shall not be transferred under the
13		renewable energy credit delivery contract with the
14		counterparty electric utility. Notwithstanding the
15		preceding, for those projects participating under item
16		(iii) of subparagraph (K), the contract price for a
17		delivery year shall be based on subscription levels as
18		measured on the higher of the first business day of the
19		delivery year or the first business day 6 months after
20		the first business day of the delivery year.
21		Subscription of 90% of nameplate capacity or greater
22		shall be deemed to be fully subscribed for the
23		purposes of this item (iv). For projects receiving a
24		20-year delivery contract, REC prices shall be
25		adjusted downward for consistency with the incentive
26		levels previously determined to be necessary to

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1		support projects under 15-year delivery contracts,
2		taking into consideration any additional new
3		requirements placed on the projects, including, but
4		not limited to, labor standards.
5		(v) Each contract shall include provisions to
6		ensure the delivery of the estimated quantity of
7		renewable energy credits and ongoing collateral
8		requirements and other provisions deemed appropriate
9		by the Agency.
10		(vi) The utility shall be the counterparty to the
11		contracts executed under this subparagraph (L) that
12		are approved by the Commission under the process
13		described in Section 16-111.5 of the Public Utilities
14		Act. No contract shall be executed for an amount that
15		is less than one renewable energy credit per year.
16		(vii) If, at any time, approved applications for
17		the Adjustable Block program exceed funds collected by
18		the electric utility or would cause the Agency to
19		exceed the limitation described in subparagraph (E) of
20		this paragraph (1) on the amount of renewable energy
21		resources that may be procured, then the Agency may
22		consider future uncommitted funds to be reserved for
23		these contracts on a first-come, first-served basis.
24		(viii) 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 anticipated to be

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1		collected by the utility under paragraph (6) of this
2		subsection (c) and subsection (k) of Section 16-108 of
3		the Public Utilities Act inclusive of eligible funds
4		collected in prior years and alternative compliance
5		payments for use by the utility, and contracts
6		executed under this Section shall expressly
7		incorporate this limitation.
8		(ix) Notwithstanding other requirements of this
9		subparagraph (L), no modification shall be required to
10		Adjustable Block program contracts if they were
11		already executed prior to the establishment, approval,
12		and implementation of new contract forms as a result
13		of this amendatory Act of the 102nd General Assembly.
14		(x) Contracts may be assignable, but only to
15		entities first deemed by the Agency to have met
16		program terms and requirements applicable to direct
17		program participation. In developing contracts for the
18		delivery of renewable energy credits, the Agency shall
19		be permitted to establish fees applicable to each
20		contract assignment.
21		(M) The Agency shall be authorized to retain one or
22		more experts or expert consulting firms to develop,
23		administer, implement, operate, and evaluate the
24		Adjustable Block program described in subparagraph (K) of
25		this paragraph (1), and the Agency shall retain the
26		consultant or consultants in the same manner, to the

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1		extent practicable, as the Agency retains others to
2		administer provisions of this Act, including, but not
3		limited to, the procurement administrator. The selection
4		of experts and expert consulting firms and the procurement
5		process described in this subparagraph (M) are exempt from
6		the requirements of Section 20-10 of the Illinois
7		Procurement Code, under Section 20-10 of that Code. The
8		Agency shall strive to minimize administrative expenses in
9		the implementation of the Adjustable Block program.
10		The Program Administrator may charge application fees
11		to participating firms to cover the cost of program
12		administration. Any application fee amounts shall
13		initially be determined through the long-term renewable
14		resources procurement plan, and modifications to any
15		application fee that deviate more than 25% from the
16		Commission's approved value must be approved by the
17		Commission as a long-term plan revision under Section
18		16-111.5 of the Public Utilities Act. The Agency shall
19		consider stakeholder feedback when making adjustments to
20		application fees and shall notify stakeholders in advance
21		of any planned changes.
22		In addition to covering the costs of program
23		administration, the Agency, in conjunction with its
24		Program Administrator, may also use the proceeds of such
25		fees charged to participating firms to support public
26		education and ongoing regional and national coordination

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1		with nonprofit organizations, public bodies, and others
2		engaged in the implementation of renewable energy
3		incentive programs or similar initiatives. This work may
4		include developing papers and reports, hosting regional
5		and national conferences, and other work deemed necessary
6		by the Agency to position the State of Illinois as a
7		national leader in renewable energy incentive program
8		development and administration.
9		The Agency and its consultant or consultants shall
10		monitor block activity, share program activity with
11		stakeholders and conduct quarterly meetings to discuss
12		program activity and market conditions. If necessary, the
13		Agency may make prospective administrative adjustments to
14		the Adjustable Block program design, such as making
15		adjustments to purchase prices as necessary to achieve the
16		goals of this subsection (c). Program modifications to any
17		block price that do not deviate from the Commission's
18		approved value by more than 10% shall take effect
19		immediately and are not subject to Commission review and
20		approval. Program modifications to any block price that
21		deviate more than 10% from the Commission's approved value
22		must be approved by the Commission as a long-term plan
23		amendment under Section 16-111.5 of the Public Utilities
24		Act. The Agency shall consider stakeholder feedback when
25		making adjustments to the Adjustable Block design and
26		shall notify stakeholders in advance of any planned

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1		changes.
2		The Agency and its program administrators for both the
3		Adjustable Block program and the Illinois Solar for All
4		Program, consistent with the requirements of this
5		subsection (c) and subsection (b) of Section 1-56 of this
6		Act, shall propose the Adjustable Block program terms,
7		conditions, and requirements, including the prices to be
8		paid for renewable energy credits, where applicable, and
9		requirements applicable to participating entities and
10		project applications, through the development, review, and
11		approval of the Agency's long-term renewable resources
12		procurement plan described in this subsection (c) and
13		paragraph (5) of subsection (b) of Section 16-111.5 of the
14		Public Utilities Act. Terms, conditions, and requirements
15		for program participation shall include the following:
16		(i) The Agency shall establish a registration
17		process for entities seeking to qualify for
18		program-administered incentive funding and establish
19		baseline qualifications for vendor approval. The
20		Agency must maintain a list of approved entities on
21		each program's website, and may revoke a vendor's
22		ability to receive program-administered incentive
23		funding status upon a determination that the vendor
24		failed to comply with contract terms, the law, or
25		other program requirements.
26		(ii) The Agency shall establish program

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1		requirements and minimum contract terms to ensure
2		projects are properly installed and produce their
3		expected amounts of energy. Program requirements may
4		include on-site inspections and photo documentation of
5		projects under construction. The Agency may require
6		repairs, alterations, or additions to remedy any
7		material deficiencies discovered. Vendors who have a
8		disproportionately high number of deficient systems
9		may lose their eligibility to continue to receive
10		State-administered incentive funding through Agency
11		programs and procurements.
12		(iii) To discourage deceptive marketing or other
13		bad faith business practices, the Agency may require
14		direct program participants, including agents
15		operating on their behalf, to provide standardized
16		disclosures to a customer prior to that customer's
17		execution of a contract for the development of a
18		distributed generation system or a subscription to a
19		community solar project.
20		(iv) The Agency shall establish one or multiple
21		Consumer Complaints Centers to accept complaints
22		regarding businesses that participate in, or otherwise
23		benefit from, State-administered incentive funding
24		through Agency-administered programs. The Agency shall
25		maintain a public database of complaints with any
26		confidential or particularly sensitive information

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1		redacted from public entries.
2		(v) Through a filing in the proceeding for the
3		approval of its long-term renewable energy resources
4		procurement plan, the Agency shall provide an annual
5		written report to the Illinois Commerce Commission
6		documenting the frequency and nature of complaints and
7		any enforcement actions taken in response to those
8		complaints.
9		(vi) The Agency shall schedule regular meetings
10		with representatives of the Office of the Attorney
11		General, the Illinois Commerce Commission, consumer
12		protection groups, and other interested stakeholders
13		to share relevant information about consumer
14		protection, project compliance, and complaints
15		received.
16		(vii) To the extent that complaints received
17		implicate the jurisdiction of the Office of the
18		Attorney General, the Illinois Commerce Commission, or
19		local, State, or federal law enforcement, the Agency
20		shall also refer complaints to those entities as
21		appropriate.
22		(N) The Agency shall establish the terms, conditions,
23		and program requirements for photovoltaic community
24		renewable generation projects with a goal to expand access
25		to a broader group of energy consumers, to ensure robust
26		participation opportunities for residential and small

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1		commercial customers and those who cannot install
2		renewable energy on their own properties. Subject to
3		reasonable limitations, any plan approved by the
4		Commission shall allow subscriptions to community
5		renewable generation projects to be portable and
6		transferable. For purposes of this subparagraph (N),
7		"portable" means that subscriptions may be retained by the
8		subscriber even if the subscriber relocates or changes its
9		address within the same utility service territory; and
10		"transferable" means that a subscriber may assign or sell
11		subscriptions to another person within the same utility
12		service territory.
13		Through the development of its long-term renewable
14		resources procurement plan, the Agency may consider
15		whether community renewable generation projects utilizing
16		technologies other than photovoltaics should be supported
17		through State-administered incentive funding, and may
18		issue requests for information to gauge market demand.
19		Electric utilities shall provide a monetary credit to
20		a subscriber's subsequent bill for service for the
21		proportional output of a community renewable generation
22		project attributable to that subscriber as specified in
23		Section 16-107.5 of the Public Utilities Act.
24		The Agency shall purchase renewable energy credits
25		from subscribed shares of photovoltaic community renewable
26		generation projects through the Adjustable Block program

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1		described in subparagraph (K) of this paragraph (1) or
2		through the Illinois Solar for All Program described in
3		Section 1-56 of this Act. The electric utility shall
4		purchase any unsubscribed energy from community renewable
5		generation projects that are Qualifying Facilities ("QF")
6		under the electric utility's tariff for purchasing the
7		output from QFs under Public Utilities Regulatory Policies
8		Act of 1978.
9		The owners of and any subscribers to a community
10		renewable generation project shall not be considered
11		public utilities or alternative retail electricity
12		suppliers under the Public Utilities Act solely as a
13		result of their interest in or subscription to a community
14		renewable generation project and shall not be required to
15		become an alternative retail electric supplier by
16		participating in a community renewable generation project
17		with a public utility.
18		(O) For the delivery year beginning June 1, 2018, the
19		long-term renewable resources procurement plan required by
20		this subsection (c) shall provide for the Agency to
21		procure contracts to continue offering the Illinois Solar
22		for All Program described in subsection (b) of Section
23		1-56 of this Act, and the contracts approved by the
24		Commission shall be executed by the utilities that are
25		subject to this subsection (c). The long-term renewable
26		resources procurement plan shall allocate up to

SB1699 Enrolled - 75 - LRB103 27684 AMQ 54061 b
1		$50,000,000 per delivery year to fund the programs, and
2		the plan shall determine the amount of funding to be
3		apportioned to the programs identified in subsection (b)
4		of Section 1-56 of this Act; provided that for the
5		delivery years beginning June 1, 2021, June 1, 2022, and
6		June 1, 2023, the long-term renewable resources
7		procurement plan may average the annual budgets over a
8		3-year period to account for program ramp-up. For the
9		delivery years beginning June 1, 2021, June 1, 2024, June
10		1, 2027, and June 1, 2030 and additional $10,000,000 shall
11		be provided to the Department of Commerce and Economic
12		Opportunity to implement the workforce development
13		programs and reporting as outlined in Section 16-108.12 of
14		the Public Utilities Act. In making the determinations
15		required under this subparagraph (O), the Commission shall
16		consider the experience and performance under the programs
17		and any evaluation reports. The Commission shall also
18		provide for an independent evaluation of those programs on
19		a periodic basis that are funded under this subparagraph
20		(O).
21		(P) All programs and procurements under this
22		subsection (c) shall be designed to encourage
23		participating projects to use a diverse and equitable
24		workforce and a diverse set of contractors, including
25		minority-owned businesses, disadvantaged businesses,
26		trade unions, graduates of any workforce training programs

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1		administered under this Act, and small businesses.
2		The Agency shall develop a method to optimize
3		procurement of renewable energy credits from proposed
4		utility-scale projects that are located in communities
5		eligible to receive Energy Transition Community Grants
6		pursuant to Section 10-20 of the Energy Community
7		Reinvestment Act. If this requirement conflicts with other
8		provisions of law or the Agency determines that full
9		compliance with the requirements of this subparagraph (P)
10		would be unreasonably costly or administratively
11		impractical, the Agency is to propose alternative
12		approaches to achieve development of renewable energy
13		resources in communities eligible to receive Energy
14		Transition Community Grants pursuant to Section 10-20 of
15		the Energy Community Reinvestment Act or seek an exemption
16		from this requirement from the Commission.
17		(Q) Each facility listed in subitems (i) through
18		(viii) of item (1) of this subparagraph (Q) for which a
19		renewable energy credit delivery contract is signed after
20		the effective date of this amendatory Act of the 102nd
21		General Assembly is subject to the following requirements
22		through the Agency's long-term renewable resources
23		procurement plan:
24		(1) Each facility shall be subject to the
25		prevailing wage requirements included in the
26		Prevailing Wage Act. The Agency shall require

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

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1		(vi) all new photovoltaic projects on public
2		school land distributed renewable energy
3		generation devices on schools that qualify for
4		item (iv) of subparagraph (K) of this paragraph
5		(1);
6		(vii) all new photovoltaic distributed
7		renewable energy generation devices that (1)
8		qualify for item (i) of subparagraph (K) of this
9		paragraph (1); (2) are not projects that serve
10		single-family or multi-family residential
11		buildings; and (3) are not houses of worship where
12		the aggregate capacity including collocated
13		projects would not exceed 100 kilowatts;
14		(viii) all new photovoltaic distributed
15		renewable energy generation devices that (1)
16		qualify for item (ii) of subparagraph (K) of this
17		paragraph (1); (2) are not projects that serve
18		single-family or multi-family residential
19		buildings; and (3) are not houses of worship where
20		the aggregate capacity including collocated
21		projects would not exceed 100 kilowatts.
22		(2) Renewable energy credits procured from new
23		utility-scale wind projects, new utility-scale solar
24		projects, and new brownfield solar projects pursuant
25		to Agency procurement events occurring after the
26		effective date of this amendatory Act of the 102nd

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1		General Assembly must be from facilities built by
2		general contractors that must enter into a project
3		labor agreement, as defined by this Act, prior to
4		construction. The project labor agreement shall be
5		filed with the Director in accordance with procedures
6		established by the Agency through its long-term
7		renewable resources procurement plan. Any information
8		submitted to the Agency in this item (2) shall be
9		considered commercially sensitive information. At a
10		minimum, the project labor agreement must provide the
11		names, addresses, and occupations of the owner of the
12		plant and the individuals representing the labor
13		organization employees participating in the project
14		labor agreement consistent with the Project Labor
15		Agreements Act. The agreement must also specify the
16		terms and conditions as defined by this Act.
17		(3) It is the intent of this Section to ensure that
18		economic development occurs across Illinois
19		communities, that emerging businesses may grow, and
20		that there is improved access to the clean energy
21		economy by persons who have greater economic burdens
22		to success. The Agency shall take into consideration
23		the unique cost of compliance of this subparagraph (Q)
24		that might be borne by equity eligible contractors,
25		shall include such costs when determining the price of
26		renewable energy credits in the Adjustable Block

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1		program, and shall take such costs into consideration
2		in a nondiscriminatory manner when comparing bids for
3		competitive procurements. The Agency shall consider
4		costs associated with compliance whether in the
5		development, financing, or construction of projects.
6		The Agency shall periodically review the assumptions
7		in these costs and may adjust prices, in compliance
8		with subparagraph (M) of this paragraph (1).
9		(R) In its long-term renewable resources procurement
10		plan, the Agency shall establish a self-direct renewable
11		portfolio standard compliance program for eligible
12		self-direct customers that purchase renewable energy
13		credits from utility-scale wind and solar projects through
14		long-term agreements for purchase of renewable energy
15		credits as described in this Section. Such long-term
16		agreements may include the purchase of energy or other
17		products on a physical or financial basis and may involve
18		an alternative retail electric supplier as defined in
19		Section 16-102 of the Public Utilities Act. This program
20		shall take effect in the delivery year commencing June 1,
21		2023.
22		(1) For the purposes of this subparagraph:
23		"Eligible self-direct customer" means any retail
24		customers of an electric utility that serves 3,000,000
25		or more retail customers in the State and whose total
26		highest 30-minute demand was more than 10,000

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

SB1699 Enrolled - 82 - LRB103 27684 AMQ 54061 b
1		governed utility-scale renewable energy credits at
2		the time the eligible self-direct customer entered
3		into the applicable renewable energy credit
4		purchase agreement;
5		(iii) be procured through long-term contracts
6		with term lengths of at least 10 years either
7		directly with the renewable energy generating
8		facility or through a bundled power purchase
9		agreement, a virtual power purchase agreement, an
10		agreement between the renewable generating
11		facility, an alternative retail electric supplier,
12		and the customer, or such other structure as is
13		permissible under this subparagraph (R);
14		(iv) be equivalent in volume to at least 40%
15		of the eligible self-direct customer's usage,
16		determined annually by the eligible self-direct
17		customer's usage during the previous delivery
18		year, measured to the nearest megawatt-hour;
19		(v) be retired by or on behalf of the large
20		energy customer;
21		(vi) be sourced from new utility-scale wind
22		projects or new utility-scale solar projects; and
23		(vii) if the contracts for renewable energy
24		credits are entered into after the effective date
25		of this amendatory Act of the 102nd General
26		Assembly, the new utility-scale wind projects or

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1		new utility-scale solar projects must comply with
2		the requirements established in subparagraphs (P)
3		and (Q) of paragraph (1) of this subsection (c)
4		and subsection (c-10).
5		(3) The self-direct renewable portfolio standard
6		compliance program shall be designed to allow eligible
7		self-direct customers to procure new renewable energy
8		credits from new utility-scale wind projects or new
9		utility-scale photovoltaic projects. The Agency shall
10		annually determine the amount of utility-scale
11		renewable energy credits it will include each year
12		from the self-direct renewable portfolio standard
13		compliance program, subject to receiving qualifying
14		applications. In making this determination, the Agency
15		shall evaluate publicly available analyses and studies
16		of the potential market size for utility-scale
17		renewable energy long-term purchase agreements by
18		commercial and industrial energy customers and make
19		that report publicly available. If demand for
20		participation in the self-direct renewable portfolio
21		standard compliance program exceeds availability, the
22		Agency shall ensure participation is evenly split
23		between commercial and industrial users to the extent
24		there is sufficient demand from both customer classes.
25		Each renewable energy credit procured pursuant to this
26		subparagraph (R) by a self-direct customer shall

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

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

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

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

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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		(c-5) Procurement of renewable energy credits from new
4		renewable energy facilities installed at or adjacent to the
5		sites of electric generating facilities that burn or burned
6		coal as their primary fuel source.
7		(1) In addition to the procurement of renewable energy
8		credits pursuant to long-term renewable resources
9		procurement plans in accordance with subsection (c) of
10		this Section and Section 16-111.5 of the Public Utilities
11		Act, the Agency shall conduct procurement events in
12		accordance with this subsection (c-5) for the procurement
13		by electric utilities that served more than 300,000 retail
14		customers in this State as of January 1, 2019 of renewable
15		energy credits from new renewable energy facilities to be
16		installed at or adjacent to the sites of electric
17		generating facilities that, as of January 1, 2016, burned
18		coal as their primary fuel source and meet the other
19		criteria specified in this subsection (c-5). For purposes
20		of this subsection (c-5), "new renewable energy facility"
21		means a new utility-scale solar project as defined in this
22		Section 1-75. The renewable energy credits procured
23		pursuant to this subsection (c-5) may be included or
24		counted for purposes of compliance with the amounts of
25		renewable energy credits required to be procured pursuant
26		to subsection (c) of this Section to the extent that there

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1		are otherwise shortfalls in compliance with such
2		requirements. The procurement of renewable energy credits
3		by electric utilities pursuant to this subsection (c-5)
4		shall be funded solely by revenues collected from the Coal
5		to Solar and Energy Storage Initiative Charge provided for
6		in this subsection (c-5) and subsection (i-5) of Section
7		16-108 of the Public Utilities Act, shall not be funded by
8		revenues collected through any of the other funding
9		mechanisms provided for in subsection (c) of this Section,
10		and shall not be subject to the limitation imposed by
11		subsection (c) on charges to retail customers for costs to
12		procure renewable energy resources pursuant to subsection
13		(c), and shall not be subject to any other requirements or
14		limitations of subsection (c).
15		(2) The Agency shall conduct 2 procurement events to
16		select owners of electric generating facilities meeting
17		the eligibility criteria specified in this subsection
18		(c-5) to enter into long-term contracts to sell renewable
19		energy credits to electric utilities serving more than
20		300,000 retail customers in this State as of January 1,
21		2019. The first procurement event shall be conducted no
22		later than March 31, 2022, unless the Agency elects to
23		delay it, until no later than May 1, 2022, due to its
24		overall volume of work, and shall be to select owners of
25		electric generating facilities located in this State and
26		south of federal Interstate Highway 80 that meet the

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1		eligibility criteria specified in this subsection (c-5).
2		The second procurement event shall be conducted no sooner
3		than September 30, 2022 and no later than October 31, 2022
4		and shall be to select owners of electric generating
5		facilities located anywhere in this State that meet the
6		eligibility criteria specified in this subsection (c-5).
7		The Agency shall establish and announce a time period,
8		which shall begin no later than 30 days prior to the
9		scheduled date for the procurement event, during which
10		applicants may submit applications to be selected as
11		suppliers of renewable energy credits pursuant to this
12		subsection (c-5). The eligibility criteria for selection
13		as a supplier of renewable energy credits pursuant to this
14		subsection (c-5) shall be as follows:
15		(A) The applicant owns an electric generating
16		facility located in this State that: (i) as of January
17		1, 2016, burned coal as its primary fuel to generate
18		electricity; and (ii) has, or had prior to retirement,
19		an electric generating capacity of at least 150
20		megawatts. The electric generating facility can be
21		either: (i) retired as of the date of the procurement
22		event; or (ii) still operating as of the date of the
23		procurement event.
24		(B) The applicant is not (i) an electric
25		cooperative as defined in Section 3-119 of the Public
26		Utilities Act, or (ii) an entity described in

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1		subsection (b)(1) of Section 3-105 of the Public
2		Utilities Act, or an association or consortium of or
3		an entity owned by entities described in (i) or (ii);
4		and the coal-fueled electric generating facility was
5		at one time owned, in whole or in part, by a public
6		utility as defined in Section 3-105 of the Public
7		Utilities Act.
8		(C) If participating in the first procurement
9		event, the applicant proposes and commits to construct
10		and operate, at the site, and if necessary for
11		sufficient space on property adjacent to the existing
12		property, at which the electric generating facility
13		identified in paragraph (A) is located: (i) a new
14		renewable energy facility of at least 20 megawatts but
15		no more than 100 megawatts of electric generating
16		capacity, and (ii) an energy storage facility having a
17		storage capacity equal to at least 2 megawatts and at
18		most 10 megawatts. If participating in the second
19		procurement event, the applicant proposes and commits
20		to construct and operate, at the site, and if
21		necessary for sufficient space on property adjacent to
22		the existing property, at which the electric
23		generating facility identified in paragraph (A) is
24		located: (i) a new renewable energy facility of at
25		least 5 megawatts but no more than 20 megawatts of
26		electric generating capacity, and (ii) an energy

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1		storage facility having a storage capacity equal to at
2		least 0.5 megawatts and at most one megawatt.
3		(D) The applicant agrees that the new renewable
4		energy facility and the energy storage facility will
5		be constructed or installed by a qualified entity or
6		entities in compliance with the requirements of
7		subsection (g) of Section 16-128A of the Public
8		Utilities Act and any rules adopted thereunder.
9		(E) The applicant agrees that personnel operating
10		the new renewable energy facility and the energy
11		storage facility will have the requisite skills,
12		knowledge, training, experience, and competence, which
13		may be demonstrated by completion or current
14		participation and ultimate completion by employees of
15		an accredited or otherwise recognized apprenticeship
16		program for the employee's particular craft, trade, or
17		skill, including through training and education
18		courses and opportunities offered by the owner to
19		employees of the coal-fueled electric generating
20		facility or by previous employment experience
21		performing the employee's particular work skill or
22		function.
23		(F) The applicant commits that not less than the
24		prevailing wage, as determined pursuant to the
25		Prevailing Wage Act, will be paid to the applicant's
26		employees engaged in construction activities

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1		associated with the new renewable energy facility and
2		the new energy storage facility and to the employees
3		of applicant's contractors engaged in construction
4		activities associated with the new renewable energy
5		facility and the new energy storage facility, and
6		that, on or before the commercial operation date of
7		the new renewable energy facility, the applicant shall
8		file a report with the Agency certifying that the
9		requirements of this subparagraph (F) have been met.
10		(G) The applicant commits that if selected, it
11		will negotiate a project labor agreement for the
12		construction of the new renewable energy facility and
13		associated energy storage facility that includes
14		provisions requiring the parties to the agreement to
15		work together to establish diversity threshold
16		requirements and to ensure best efforts to meet
17		diversity targets, improve diversity at the applicable
18		job site, create diverse apprenticeship opportunities,
19		and create opportunities to employ former coal-fired
20		power plant workers.
21		(H) The applicant commits to enter into a contract
22		or contracts for the applicable duration to provide
23		specified numbers of renewable energy credits each
24		year from the new renewable energy facility to
25		electric utilities that served more than 300,000
26		retail customers in this State as of January 1, 2019,

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

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1		(4) The Agency shall assess fees to each applicant to
2		recover the Agency's costs incurred in receiving and
3		evaluating applications, conducting the procurement event,
4		developing contracts for sale, delivery and purchase of
5		renewable energy credits, and monitoring the
6		administration of such contracts, as provided for in this
7		subsection (c-5), including fees paid to a procurement
8		administrator retained by the Agency for one or more of
9		these purposes.
10		(5) The Agency shall select the applicants and the new
11		renewable energy facilities to contract with electric
12		utilities to supply renewable energy credits in accordance
13		with this subsection (c-5). In the first procurement
14		event, the Agency shall select applicants and new
15		renewable energy facilities to supply renewable energy
16		credits, at a price of $30 per renewable energy credit,
17		aggregating to no less than 400,000 renewable energy
18		credits per year for the applicable duration, assuming
19		sufficient qualifying applications to supply, in the
20		aggregate, at least that amount of renewable energy
21		credits per year; and not more than 580,000 renewable
22		energy credits per year for the applicable duration. In
23		the second procurement event, the Agency shall select
24		applicants and new renewable energy facilities to supply
25		renewable energy credits, at a price of $30 per renewable
26		energy credit, aggregating to no more than 625,000

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1		renewable energy credits per year less the amount of
2		renewable energy credits each year contracted for as a
3		result of the first procurement event, for the applicable
4		durations. The number of renewable energy credits to be
5		procured as specified in this paragraph (5) shall not be
6		reduced based on renewable energy credits procured in the
7		self-direct renewable energy credit compliance program
8		established pursuant to subparagraph (R) of paragraph (1)
9		of subsection (c) of Section 1-75.
10		(6) The obligation to purchase renewable energy
11		credits from the applicants and their new renewable energy
12		facilities selected by the Agency shall be allocated to
13		the electric utilities based on their respective
14		percentages of kilowatthours delivered to delivery
15		services customers to the aggregate kilowatthour
16		deliveries by the electric utilities to delivery services
17		customers for the year ended December 31, 2021. In order
18		to achieve these allocation percentages between or among
19		the electric utilities, the Agency shall require each
20		applicant that is selected in the procurement event to
21		enter into a contract with each electric utility for the
22		sale and purchase of renewable energy credits from each
23		new renewable energy facility to be constructed and
24		operated by the applicant, with the sale and purchase
25		obligations under the contracts to aggregate to the total
26		number of renewable energy credits per year to be supplied

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1		by the applicant from the new renewable energy facility.
2		(7) The Agency shall submit its proposed selection of
3		applicants, new renewable energy facilities to be
4		constructed, and renewable energy credit amounts for each
5		procurement event to the Commission for approval. The
6		Commission shall, within 2 business days after receipt of
7		the Agency's proposed selections, approve the proposed
8		selections if it determines that the applicants and the
9		new renewable energy facilities to be constructed meet the
10		selection criteria set forth in this subsection (c-5) and
11		that the Agency seeks approval for contracts of applicable
12		durations aggregating to no more than the maximum amount
13		of renewable energy credits per year authorized by this
14		subsection (c-5) for the procurement event, at a price of
15		$30 per renewable energy credit.
16		(8) The Agency, in conjunction with its procurement
17		administrator if one is retained, the electric utilities,
18		and potential applicants for contracts to produce and
19		supply renewable energy credits pursuant to this
20		subsection (c-5), shall develop a standard form contract
21		for the sale, delivery and purchase of renewable energy
22		credits pursuant to this subsection (c-5). Each contract
23		resulting from the first procurement event shall allow for
24		a commercial operation date for the new renewable energy
25		facility of either June 1, 2023 or June 1, 2024, with such
26		dates subject to adjustment as provided in this paragraph.

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

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

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

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1		the State treasury. The Coal to Solar and Energy
2		Storage Initiative Fund is authorized to receive, by
3		statutory deposit, that portion specified in item (B)
4		of paragraph (9) of this subsection (c-5) of moneys
5		collected by electric utilities through imposition of
6		the Coal to Solar and Energy Storage Initiative Charge
7		required by this subsection (c-5). The Coal to Solar
8		and Energy Storage Initiative Fund shall be
9		administered by the Department to provide grants to
10		support the installation and operation of energy
11		storage facilities at the sites of qualifying electric
12		generating facilities meeting the criteria specified
13		in this paragraph (10).
14		(B) The Coal to Solar and Energy Storage
15		Initiative Fund shall not be subject to sweeps,
16		administrative charges, or chargebacks, including, but
17		not limited to, those authorized under Section 8h of
18		the State Finance Act, that would in any way result in
19		the transfer of those funds from the Coal to Solar and
20		Energy Storage Initiative Fund to any other fund of
21		this State or in having any such funds utilized for any
22		purpose other than the express purposes set forth in
23		this paragraph (10).
24		(C) The Department shall utilize up to
25		$280,500,000 in the Coal to Solar and Energy Storage
26		Initiative Fund for grants, assuming sufficient

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1		qualifying applicants, to support installation of
2		energy storage facilities at the sites of up to 3
3		qualifying electric generating facilities located in
4		the Midcontinent Independent System Operator, Inc.,
5		region in Illinois and the sites of up to 2 qualifying
6		electric generating facilities located in the PJM
7		Interconnection, LLC region in Illinois that meet the
8		criteria set forth in this subparagraph (C). The
9		criteria for receipt of a grant pursuant to this
10		subparagraph (C) are as follows:
11		(1) the electric generating facility at the
12		site has, or had prior to retirement, an electric
13		generating capacity of at least 150 megawatts;
14		(2) the electric generating facility burns (or
15		burned prior to retirement) coal as its primary
16		source of fuel;
17		(3) if the electric generating facility is
18		retired, it was retired subsequent to January 1,
19		2016;
20		(4) the owner of the electric generating
21		facility has not been selected by the Agency
22		pursuant to this subsection (c-5) of this Section
23		to enter into a contract to sell renewable energy
24		credits to one or more electric utilities from a
25		new renewable energy facility located or to be
26		located at or adjacent to the site at which the

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

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

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1		the new energy storage facility, and that, on or
2		before the commercial operation date of the new
3		energy storage facility, the owner shall file a
4		report with the Department certifying that the
5		requirements of this subparagraph (11) have been
6		met; and
7		(12) the owner commits that if selected to
8		receive a grant, it will negotiate a project labor
9		agreement for the construction of the new energy
10		storage facility that includes provisions
11		requiring the parties to the agreement to work
12		together to establish diversity threshold
13		requirements and to ensure best efforts to meet
14		diversity targets, improve diversity at the
15		applicable job site, create diverse apprenticeship
16		opportunities, and create opportunities to employ
17		former coal-fired power plant workers.
18		The Department shall accept applications for this
19		grant program until March 31, 2022 and shall announce
20		the award of grants no later than June 1, 2022. The
21		Department shall make the grant payments to a
22		recipient in equal annual amounts for 10 years
23		following the date the energy storage facility is
24		placed into commercial operation. The annual grant
25		payments to a qualifying energy storage facility shall
26		be $110,000 per megawatt of energy storage capacity,

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

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

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

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

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

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1		disproportionate levels of pollution, and have
2		disproportionately experienced negative public health
3		outcomes.
4		(1) Minimum equity standards. The Agency shall create
5		programs with the purpose of increasing access to and
6		development of equity eligible contractors, who are prime
7		contractors and subcontractors, across all of the programs
8		it manages. All applications for renewable energy credit
9		procurements shall comply with specific minimum equity
10		commitments. Starting in the delivery year immediately
11		following the next long-term renewable resources
12		procurement plan, at least 10% of the project workforce
13		for each entity participating in a procurement program
14		outlined in this subsection (c-10) must be done by equity
15		eligible persons or equity eligible contractors. The
16		Agency shall increase the minimum percentage each delivery
17		year thereafter by increments that ensure a statewide
18		average of 30% of the project workforce for each entity
19		participating in a procurement program is done by equity
20		eligible persons or equity eligible contractors by 2030.
21		The Agency shall propose a schedule of percentage
22		increases to the minimum equity standards in its draft
23		revised renewable energy resources procurement plan
24		submitted to the Commission for approval pursuant to
25		paragraph (5) of subsection (b) of Section 16-111.5 of the
26		Public Utilities Act. In determining these annual

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

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

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

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

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

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

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

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

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

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1		(2) Agency collection of program data. The Agency
2		shall collect demographic and geographic data for each
3		entity awarded contracts under any Agency-administered
4		program.
5		(3) Required information to be collected. The Agency
6		shall collect the following information from applicants
7		and program participants where applicable:
8		(A) demographic information, including racial or
9		ethnic identity for real persons employed, contracted,
10		or subcontracted through the program and owners of
11		businesses or entities that apply to receive renewable
12		energy credits from the Agency;
13		(B) geographic location of the residency of real
14		persons employed, contracted, or subcontracted through
15		the program and geographic location of the
16		headquarters of the business or entity that applies to
17		receive renewable energy credits from the Agency; and
18		(C) any other information the Agency determines is
19		necessary for the purpose of achieving the purpose of
20		this subsection.
21		(4) Publication of collected information. The Agency
22		shall publish, at least annually, information on the
23		demographics of program participants on an aggregate
24		basis.
25		(5) Nothing in this subsection shall be interpreted to
26		limit the authority of the Agency, or other agency or

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1		department of the State, to require or collect demographic
2		information from applicants of other State programs.
3		(c-25) Energy Workforce Equity Database.
4		(1) The Agency, in consultation with the Department of
5		Commerce and Economic Opportunity, shall create an Energy
6		Workforce Equity Database, and may contract with a third
7		party to do so ("database program administrator"). If the
8		Department decides to contract with a third party, that
9		third party shall be exempt from the requirements of
10		Section 20-10 of the Illinois Procurement Code. The Energy
11		Workforce Equity Database shall be a searchable database
12		of suppliers, vendors, and subcontractors for clean energy
13		industries that is:
14		(A) publicly accessible;
15		(B) easy for people to find and use;
16		(C) organized by company specialty or field;
17		(D) region-specific; and
18		(E) populated with information including, but not
19		limited to, contacts for suppliers, vendors, or
20		subcontractors who are minority and women-owned
21		business enterprise certified or who participate or
22		have participated in any of the programs described in
23		this Act.
24		(2) The Agency shall create an easily accessible,
25		public facing online tool using the database information
26		that includes, at a minimum, the following:

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1		(A) a map of environmental justice and equity
2		investment eligible communities;
3		(B) job postings and recruiting opportunities;
4		(C) a means by which recruiting clean energy
5		companies can find and interact with current or former
6		participants of clean energy workforce training
7		programs;
8		(D) information on workforce training service
9		providers and training opportunities available to
10		prospective workers;
11		(E) renewable energy company diversity reporting;
12		(F) a list of equity eligible contractors with
13		their contact information, types of work performed,
14		and locations worked in;
15		(G) reporting on outcomes of the programs
16		described in the workforce programs of the Energy
17		Transition Act, including information such as, but not
18		limited to, retention rate, graduation rate, and
19		placement rates of trainees; and
20		(H) information about the Jobs and Environmental
21		Justice Grant Program, the Clean Energy Jobs and
22		Justice Fund, and other sources of capital.
23		(3) The Agency shall ensure the database is regularly
24		updated to ensure information is current and shall
25		coordinate with the Department of Commerce and Economic
26		Opportunity to ensure that it includes information on

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1		individuals and entities that are or have participated in
2		the Clean Jobs Workforce Network Program, Clean Energy
3		Contractor Incubator Program, Returning Residents Clean
4		Jobs Training Program, or Clean Energy Primes Contractor
5		Accelerator Program.
6		(c-30) Enforcement of minimum equity standards. All
7		entities seeking renewable energy credits must submit an
8		annual report to demonstrate compliance with each of the
9		equity commitments required under subsection (c-10). If the
10		Agency concludes the entity has not met or maintained its
11		minimum equity standards required under the applicable
12		subparagraphs under subsection (c-10), the Agency shall deny
13		the entity's ability to participate in procurement programs in
14		subsection (c), including by withholding approved vendor or
15		designee status. The Agency may require the entity to enter
16		into a corrective action plan. An entity that is not
17		recertified for failing to meet required equity actions in
18		subparagraph (c-10) may reapply once they have a corrective
19		action plan and achieve compliance with the minimum equity
20		standards.
21		(d) Clean coal portfolio standard.
22		(1) The procurement plans shall include electricity
23		generated using clean coal. Each utility shall enter into
24		one or more sourcing agreements with the initial clean
25		coal facility, as provided in paragraph (3) of this
26		subsection (d), covering electricity generated by the

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1		initial clean coal facility representing at least 5% of
2		each utility's total supply to serve the load of eligible
3		retail customers in 2015 and each year thereafter, as
4		described in paragraph (3) of this subsection (d), subject
5		to the limits specified in paragraph (2) of this
6		subsection (d). It is the goal of the State that by January
7		1, 2025, 25% of the electricity used in the State shall be
8		generated by cost-effective clean coal facilities. For
9		purposes of this subsection (d), "cost-effective" means
10		that the expenditures pursuant to such sourcing agreements
11		do not cause the limit stated in paragraph (2) of this
12		subsection (d) to be exceeded and do not exceed cost-based
13		benchmarks, which shall be developed to assess all
14		expenditures pursuant to such sourcing agreements covering
15		electricity generated by clean coal facilities, other than
16		the initial clean coal facility, by the procurement
17		administrator, in consultation with the Commission staff,
18		Agency staff, and the procurement monitor and shall be
19		subject to Commission review and approval.
20		A utility party to a sourcing agreement shall
21		immediately retire any emission credits that it receives
22		in connection with the electricity covered by such
23		agreement.
24		Utilities shall maintain adequate records documenting
25		the purchases under the sourcing agreement to comply with
26		this subsection (d) and shall file an accounting with the

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1		load forecast that must be filed with the Agency by July 15
2		of each year, in accordance with subsection (d) of Section
3		16-111.5 of the Public Utilities Act.
4		A utility shall be deemed to have complied with the
5		clean coal portfolio standard specified in this subsection
6		(d) if the utility enters into a sourcing agreement as
7		required by this subsection (d).
8		(2) For purposes of this subsection (d), the required
9		execution of sourcing agreements with the initial clean
10		coal facility for a particular year shall be measured as a
11		percentage of the actual amount of electricity
12		(megawatt-hours) supplied by the electric utility to
13		eligible retail customers in the planning year ending
14		immediately prior to the agreement's execution. For
15		purposes of this subsection (d), the amount paid per
16		kilowatthour means the total amount paid for electric
17		service expressed on a per kilowatthour basis. For
18		purposes of this subsection (d), 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		(d), the total amount paid under sourcing agreements with
24		clean coal facilities pursuant to the procurement plan for
25		any given year shall be reduced by an amount necessary to
26		limit the annual estimated average net increase due to the

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1		costs of these resources included in the amounts paid by
2		eligible retail customers in connection with electric
3		service to:
4		(A) in 2010, no more than 0.5% of the amount paid
5		per kilowatthour by those customers during the year
6		ending May 31, 2009;
7		(B) in 2011, the greater of an additional 0.5% of
8		the amount paid per kilowatthour by those customers
9		during the year ending May 31, 2010 or 1% of the amount
10		paid per kilowatthour by those customers during the
11		year ending May 31, 2009;
12		(C) in 2012, the greater of an additional 0.5% of
13		the amount paid per kilowatthour by those customers
14		during the year ending May 31, 2011 or 1.5% of the
15		amount paid per kilowatthour by those customers during
16		the year ending May 31, 2009;
17		(D) in 2013, the greater of an additional 0.5% of
18		the amount paid per kilowatthour by those customers
19		during the year ending May 31, 2012 or 2% of the amount
20		paid per kilowatthour by those customers during the
21		year ending May 31, 2009; and
22		(E) thereafter, the total amount paid under
23		sourcing agreements with clean coal facilities
24		pursuant to the procurement plan for any single year
25		shall be reduced by an amount necessary to limit the
26		estimated average net increase due to the cost of

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1		these resources included in the amounts paid by
2		eligible retail customers in connection with electric
3		service to no more than the greater of (i) 2.015% of
4		the amount paid per kilowatthour by those customers
5		during the year ending May 31, 2009 or (ii) the
6		incremental amount per kilowatthour paid for these
7		resources in 2013. These requirements may be altered
8		only as provided by statute.
9		No later than June 30, 2015, the Commission shall
10		review the limitation on the total amount paid under
11		sourcing agreements, if any, with clean coal facilities
12		pursuant to this subsection (d) and report to the General
13		Assembly its findings as to whether that limitation unduly
14		constrains the amount of electricity generated by
15		cost-effective clean coal facilities that is covered by
16		sourcing agreements.
17		(3) Initial clean coal facility. In order to promote
18		development of clean coal facilities in Illinois, each
19		electric utility subject to this Section shall execute a
20		sourcing agreement to source electricity from a proposed
21		clean coal facility in Illinois (the "initial clean coal
22		facility") that will have a nameplate capacity of at least
23		500 MW when commercial operation commences, that has a
24		final Clean Air Act permit on June 1, 2009 (the effective
25		date of Public Act 95-1027), and that will meet the
26		definition of clean coal facility in Section 1-10 of this

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1		Act when commercial operation commences. The sourcing
2		agreements with this initial clean coal facility shall be
3		subject to both approval of the initial clean coal
4		facility by the General Assembly and satisfaction of the
5		requirements of paragraph (4) of this subsection (d) and
6		shall be executed within 90 days after any such approval
7		by the General Assembly. The Agency and the Commission
8		shall have authority to inspect all books and records
9		associated with the initial clean coal facility during the
10		term of such a sourcing agreement. A utility's sourcing
11		agreement for electricity produced by the initial clean
12		coal facility shall include:
13		(A) a formula contractual price (the "contract
14		price") approved pursuant to paragraph (4) of this
15		subsection (d), which shall:
16		(i) be determined using a cost of service
17		methodology employing either a level or deferred
18		capital recovery component, based on a capital
19		structure consisting of 45% equity and 55% debt,
20		and a return on equity as may be approved by the
21		Federal Energy Regulatory Commission, which in any
22		case may not exceed the lower of 11.5% or the rate
23		of return approved by the General Assembly
24		pursuant to paragraph (4) of this subsection (d);
25		and
26		(ii) provide that all miscellaneous net

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1		revenue, including but not limited to net revenue
2		from the sale of emission allowances, if any,
3		substitute natural gas, if any, grants or other
4		support provided by the State of Illinois or the
5		United States Government, firm transmission
6		rights, if any, by-products produced by the
7		facility, energy or capacity derived from the
8		facility and not covered by a sourcing agreement
9		pursuant to paragraph (3) of this subsection (d)
10		or item (5) of subsection (d) of Section 16-115 of
11		the Public Utilities Act, whether generated from
12		the synthesis gas derived from coal, from SNG, or
13		from natural gas, shall be credited against the
14		revenue requirement for this initial clean coal
15		facility;
16		(B) power purchase provisions, which shall:
17		(i) provide that the utility party to such
18		sourcing agreement shall pay the contract price
19		for electricity delivered under such sourcing
20		agreement;
21		(ii) require delivery of electricity to the
22		regional transmission organization market of the
23		utility that is party to such sourcing agreement;
24		(iii) require the utility party to such
25		sourcing agreement to buy from the initial clean
26		coal facility in each hour an amount of energy

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

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1		energy equal to all clean coal energy made
2		available from the initial clean coal facility
3		during such hour times a fraction, the numerator
4		of which is such utility's retail market sales of
5		electricity (expressed in kilowatthours sold) in
6		the utility's service territory in the State
7		during the prior calendar month and the
8		denominator of which is the total retail market
9		sales of electricity (expressed in kilowatthours
10		sold) in the State by utilities during such prior
11		month and the sales of electricity (expressed in
12		kilowatthours sold) in the State by alternative
13		retail electric suppliers during such prior month
14		that are subject to the requirements of this
15		subsection (d) and paragraph (5) of subsection (d)
16		of Section 16-115 of the Public Utilities Act,
17		provided that the amount paid by the utility in
18		any year will be limited by paragraph (2) of this
19		subsection (d);
20		(ii) provide that the utility's payment
21		obligation in respect of the quantity of
22		electricity determined pursuant to the preceding
23		clause (i) shall be limited to an amount equal to
24		(1) the difference between the contract price
25		determined pursuant to subparagraph (A) of
26		paragraph (3) of this subsection (d) and the

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1		day-ahead price for electricity delivered to the
2		regional transmission organization market of the
3		utility that is party to such sourcing agreement
4		(or any successor delivery point at which such
5		utility's supply obligations are financially
6		settled on an hourly basis) (the "reference
7		price") on the day preceding the day on which the
8		electricity is delivered to the initial clean coal
9		facility busbar, multiplied by (2) the quantity of
10		electricity determined pursuant to the preceding
11		clause (i); and
12		(iii) not require the utility to take physical
13		delivery of the electricity produced by the
14		facility;
15		(D) general provisions, which shall:
16		(i) specify a term of no more than 30 years,
17		commencing on the commercial operation date of the
18		facility;
19		(ii) provide that utilities shall maintain
20		adequate records documenting purchases under the
21		sourcing agreements entered into to comply with
22		this subsection (d) and shall file an accounting
23		with the load forecast that must be filed with the
24		Agency by July 15 of each year, in accordance with
25		subsection (d) of Section 16-111.5 of the Public
26		Utilities Act;

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1		(iii) provide that all costs associated with
2		the initial clean coal facility will be
3		periodically reported to the Federal Energy
4		Regulatory Commission and to purchasers in
5		accordance with applicable laws governing
6		cost-based wholesale power contracts;
7		(iv) permit the Illinois Power Agency to
8		assume ownership of the initial clean coal
9		facility, without monetary consideration and
10		otherwise on reasonable terms acceptable to the
11		Agency, if the Agency so requests no less than 3
12		years prior to the end of the stated contract
13		term;
14		(v) require the owner of the initial clean
15		coal facility to provide documentation to the
16		Commission each year, starting in the facility's
17		first year of commercial operation, accurately
18		reporting the quantity of carbon emissions from
19		the facility that have been captured and
20		sequestered and report any quantities of carbon
21		released from the site or sites at which carbon
22		emissions were sequestered in prior years, based
23		on continuous monitoring of such sites. If, in any
24		year after the first year of commercial operation,
25		the owner of the facility fails to demonstrate
26		that the initial clean coal facility captured and

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1		sequestered at least 50% of the total carbon
2		emissions that the facility would otherwise emit
3		or that sequestration of emissions from prior
4		years has failed, resulting in the release of
5		carbon dioxide into the atmosphere, the owner of
6		the facility must offset excess emissions. Any
7		such carbon offsets must be permanent, additional,
8		verifiable, real, located within the State of
9		Illinois, and legally and practicably enforceable.
10		The cost of such offsets for the facility that are
11		not recoverable shall not exceed $15 million in
12		any given year. No costs of any such purchases of
13		carbon offsets may be recovered from a utility or
14		its customers. All carbon offsets purchased for
15		this purpose and any carbon emission credits
16		associated with sequestration of carbon from the
17		facility must be permanently retired. The initial
18		clean coal facility shall not forfeit its
19		designation as a clean coal facility if the
20		facility fails to fully comply with the applicable
21		carbon sequestration requirements in any given
22		year, provided the requisite offsets are
23		purchased. However, the Attorney General, on
24		behalf of the People of the State of Illinois, may
25		specifically enforce the facility's sequestration
26		requirement and the other terms of this contract

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1		provision. Compliance with the sequestration
2		requirements and offset purchase requirements
3		specified in paragraph (3) of this subsection (d)
4		shall be reviewed annually by an independent
5		expert retained by the owner of the initial clean
6		coal facility, with the advance written approval
7		of the Attorney General. The Commission may, in
8		the course of the review specified in item (vii),
9		reduce the allowable return on equity for the
10		facility if the facility willfully fails to comply
11		with the carbon capture and sequestration
12		requirements set forth in this item (v);
13		(vi) include limits on, and accordingly
14		provide for modification of, the amount the
15		utility is required to source under the sourcing
16		agreement consistent with paragraph (2) of this
17		subsection (d);
18		(vii) require Commission review: (1) to
19		determine the justness, reasonableness, and
20		prudence of the inputs to the formula referenced
21		in subparagraphs (A)(i) through (A)(iii) of
22		paragraph (3) of this subsection (d), prior to an
23		adjustment in those inputs including, without
24		limitation, the capital structure and return on
25		equity, fuel costs, and other operations and
26		maintenance costs and (2) to approve the costs to

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1		be passed through to customers under the sourcing
2		agreement by which the utility satisfies its
3		statutory obligations. Commission review shall
4		occur no less than every 3 years, regardless of
5		whether any adjustments have been proposed, and
6		shall be completed within 9 months;
7		(viii) limit the utility's obligation to such
8		amount as the utility is allowed to recover
9		through tariffs filed with the Commission,
10		provided that neither the clean coal facility nor
11		the utility waives any right to assert federal
12		pre-emption or any other argument in response to a
13		purported disallowance of recovery costs;
14		(ix) limit the utility's or alternative retail
15		electric supplier's obligation to incur any
16		liability until such time as the facility is in
17		commercial operation and generating power and
18		energy and such power and energy is being
19		delivered to the facility busbar;
20		(x) provide that the owner or owners of the
21		initial clean coal facility, which is the
22		counterparty to such sourcing agreement, shall
23		have the right from time to time to elect whether
24		the obligations of the utility party thereto shall
25		be governed by the power purchase provisions or
26		the contract for differences provisions;

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1		(xi) append documentation showing that the
2		formula rate and contract, insofar as they relate
3		to the power purchase provisions, have been
4		approved by the Federal Energy Regulatory
5		Commission pursuant to Section 205 of the Federal
6		Power Act;
7		(xii) provide that any changes to the terms of
8		the contract, insofar as such changes relate to
9		the power purchase provisions, are subject to
10		review under the public interest standard applied
11		by the Federal Energy Regulatory Commission
12		pursuant to Sections 205 and 206 of the Federal
13		Power Act; and
14		(xiii) conform with customary lender
15		requirements in power purchase agreements used as
16		the basis for financing non-utility generators.
17		(4) Effective date of sourcing agreements with the
18		initial clean coal facility. Any proposed sourcing
19		agreement with the initial clean coal facility shall not
20		become effective unless the following reports are prepared
21		and submitted and authorizations and approvals obtained:
22		(i) Facility cost report. The owner of the initial
23		clean coal facility shall submit to the Commission,
24		the Agency, and the General Assembly a front-end
25		engineering and design study, a facility cost report,
26		method of financing (including but not limited to

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1		structure and associated costs), and an operating and
2		maintenance cost quote for the facility (collectively
3		"facility cost report"), which shall be prepared in
4		accordance with the requirements of this paragraph (4)
5		of subsection (d) of this Section, and shall provide
6		the Commission and the Agency access to the work
7		papers, relied upon documents, and any other backup
8		documentation related to the facility cost report.
9		(ii) Commission report. Within 6 months following
10		receipt of the facility cost report, the Commission,
11		in consultation with the Agency, shall submit a report
12		to the General Assembly setting forth its analysis of
13		the facility cost report. Such report shall include,
14		but not be limited to, a comparison of the costs
15		associated with electricity generated by the initial
16		clean coal facility to the costs associated with
17		electricity generated by other types of generation
18		facilities, an analysis of the rate impacts on
19		residential and small business customers over the life
20		of the sourcing agreements, and an analysis of the
21		likelihood that the initial clean coal facility will
22		commence commercial operation by and be delivering
23		power to the facility's busbar by 2016. To assist in
24		the preparation of its report, the Commission, in
25		consultation with the Agency, may hire one or more
26		experts or consultants, the costs of which shall be

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1		paid for by the owner of the initial clean coal
2		facility. The Commission and Agency may begin the
3		process of selecting such experts or consultants prior
4		to receipt of the facility cost report.
5		(iii) General Assembly approval. The proposed
6		sourcing agreements shall not take effect unless,
7		based on the facility cost report and the Commission's
8		report, the General Assembly enacts authorizing
9		legislation approving (A) the projected price, stated
10		in cents per kilowatthour, to be charged for
11		electricity generated by the initial clean coal
12		facility, (B) the projected impact on residential and
13		small business customers' bills over the life of the
14		sourcing agreements, and (C) the maximum allowable
15		return on equity for the project; and
16		(iv) Commission review. If the General Assembly
17		enacts authorizing legislation pursuant to
18		subparagraph (iii) approving a sourcing agreement, the
19		Commission shall, within 90 days of such enactment,
20		complete a review of such sourcing agreement. During
21		such time period, the Commission shall implement any
22		directive of the General Assembly, resolve any
23		disputes between the parties to the sourcing agreement
24		concerning the terms of such agreement, approve the
25		form of such agreement, and issue an order finding
26		that the sourcing agreement is prudent and reasonable.

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1		The facility cost report shall be prepared as follows:
2		(A) The facility cost report shall be prepared by
3		duly licensed engineering and construction firms
4		detailing the estimated capital costs payable to one
5		or more contractors or suppliers for the engineering,
6		procurement and construction of the components
7		comprising the initial clean coal facility and the
8		estimated costs of operation and maintenance of the
9		facility. The facility cost report shall include:
10		(i) an estimate of the capital cost of the
11		core plant based on one or more front end
12		engineering and design studies for the
13		gasification island and related facilities. The
14		core plant shall include all civil, structural,
15		mechanical, electrical, control, and safety
16		systems.
17		(ii) an estimate of the capital cost of the
18		balance of the plant, including any capital costs
19		associated with sequestration of carbon dioxide
20		emissions and all interconnects and interfaces
21		required to operate the facility, such as
22		transmission of electricity, construction or
23		backfeed power supply, pipelines to transport
24		substitute natural gas or carbon dioxide, potable
25		water supply, natural gas supply, water supply,
26		water discharge, landfill, access roads, and coal

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1		delivery.
2		The quoted construction costs shall be expressed
3		in nominal dollars as of the date that the quote is
4		prepared and shall include capitalized financing costs
5		during construction, taxes, insurance, and other
6		owner's costs, and an assumed escalation in materials
7		and labor beyond the date as of which the construction
8		cost quote is expressed.
9		(B) The front end engineering and design study for
10		the gasification island and the cost study for the
11		balance of plant shall include sufficient design work
12		to permit quantification of major categories of
13		materials, commodities and labor hours, and receipt of
14		quotes from vendors of major equipment required to
15		construct and operate the clean coal facility.
16		(C) The facility cost report shall also include an
17		operating and maintenance cost quote that will provide
18		the estimated cost of delivered fuel, personnel,
19		maintenance contracts, chemicals, catalysts,
20		consumables, spares, and other fixed and variable
21		operations and maintenance costs. The delivered fuel
22		cost estimate will be provided by a recognized third
23		party expert or experts in the fuel and transportation
24		industries. The balance of the operating and
25		maintenance cost quote, excluding delivered fuel
26		costs, will be developed based on the inputs provided

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1		by duly licensed engineering and construction firms
2		performing the construction cost quote, potential
3		vendors under long-term service agreements and plant
4		operating agreements, or recognized third party plant
5		operator or operators.
6		The operating and maintenance cost quote
7		(including the cost of the front end engineering and
8		design study) shall be expressed in nominal dollars as
9		of the date that the quote is prepared and shall
10		include taxes, insurance, and other owner's costs, and
11		an assumed escalation in materials and labor beyond
12		the date as of which the operating and maintenance
13		cost quote is expressed.
14		(D) The facility cost report shall also include an
15		analysis of the initial clean coal facility's ability
16		to deliver power and energy into the applicable
17		regional transmission organization markets and an
18		analysis of the expected capacity factor for the
19		initial clean coal facility.
20		(E) Amounts paid to third parties unrelated to the
21		owner or owners of the initial clean coal facility to
22		prepare the core plant construction cost quote,
23		including the front end engineering and design study,
24		and the operating and maintenance cost quote will be
25		reimbursed through Coal Development Bonds.
26		(5) Re-powering and retrofitting coal-fired power

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1		plants previously owned by Illinois utilities to qualify
2		as clean coal facilities. During the 2009 procurement
3		planning process and thereafter, the Agency and the
4		Commission shall consider sourcing agreements covering
5		electricity generated by power plants that were previously
6		owned by Illinois utilities and that have been or will be
7		converted into clean coal facilities, as defined by
8		Section 1-10 of this Act. Pursuant to such procurement
9		planning process, the owners of such facilities may
10		propose to the Agency sourcing agreements with utilities
11		and alternative retail electric suppliers required to
12		comply with subsection (d) of this Section and item (5) of
13		subsection (d) of Section 16-115 of the Public Utilities
14		Act, covering electricity generated by such facilities. In
15		the case of sourcing agreements that are power purchase
16		agreements, the contract price for electricity sales shall
17		be established on a cost of service basis. In the case of
18		sourcing agreements that are contracts for differences,
19		the contract price from which the reference price is
20		subtracted shall be established on a cost of service
21		basis. The Agency and the Commission may approve any such
22		utility sourcing agreements that do not exceed cost-based
23		benchmarks developed by the procurement administrator, in
24		consultation with the Commission staff, Agency staff and
25		the procurement monitor, subject to Commission review and
26		approval. The Commission shall have authority to inspect

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1		all books and records associated with these clean coal
2		facilities during the term of any such contract.
3		(6) Costs incurred under this subsection (d) or
4		pursuant to a contract entered into under this subsection
5		(d) shall be deemed prudently incurred and reasonable in
6		amount and the electric utility shall be entitled to full
7		cost recovery pursuant to the tariffs filed with the
8		Commission.
9		(d-5) Zero emission standard.
10		(1) Beginning with the delivery year commencing on
11		June 1, 2017, the Agency shall, for electric utilities
12		that serve at least 100,000 retail customers in this
13		State, procure contracts with zero emission facilities
14		that are reasonably capable of generating cost-effective
15		zero emission credits in an amount approximately equal to
16		16% of the actual amount of electricity delivered by each
17		electric utility to retail customers in the State during
18		calendar year 2014. For an electric utility serving fewer
19		than 100,000 retail customers in this State that
20		requested, under Section 16-111.5 of the Public Utilities
21		Act, that the Agency procure power and energy for all or a
22		portion of the utility's Illinois load for the delivery
23		year commencing June 1, 2016, the Agency shall procure
24		contracts with zero emission facilities that are
25		reasonably capable of generating cost-effective zero
26		emission credits in an amount approximately equal to 16%

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1		of the portion of power and energy to be procured by the
2		Agency for the utility. The duration of the contracts
3		procured under this subsection (d-5) shall be for a term
4		of 10 years ending May 31, 2027. The quantity of zero
5		emission credits to be procured under the contracts shall
6		be all of the zero emission credits generated by the zero
7		emission facility in each delivery year; however, if the
8		zero emission facility is owned by more than one entity,
9		then the quantity of zero emission credits to be procured
10		under the contracts shall be the amount of zero emission
11		credits that are generated from the portion of the zero
12		emission facility that is owned by the winning supplier.
13		The 16% value identified in this paragraph (1) is the
14		average of the percentage targets in subparagraph (B) of
15		paragraph (1) of subsection (c) of this Section for the 5
16		delivery years beginning June 1, 2017.
17		The procurement process shall be subject to the
18		following provisions:
19		(A) Those zero emission facilities that intend to
20		participate in the procurement shall submit to the
21		Agency the following eligibility information for each
22		zero emission facility on or before the date
23		established by the Agency:
24		(i) the in-service date and remaining useful
25		life of the zero emission facility;
26		(ii) the amount of power generated annually

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1		for each of the years 2005 through 2015, and the
2		projected zero emission credits to be generated
3		over the remaining useful life of the zero
4		emission facility, which shall be used to
5		determine the capability of each facility;
6		(iii) the annual zero emission facility cost
7		projections, expressed on a per megawatthour
8		basis, over the next 6 delivery years, which shall
9		include the following: operation and maintenance
10		expenses; fully allocated overhead costs, which
11		shall be allocated using the methodology developed
12		by the Institute for Nuclear Power Operations;
13		fuel expenditures; non-fuel capital expenditures;
14		spent fuel expenditures; a return on working
15		capital; the cost of operational and market risks
16		that could be avoided by ceasing operation; and
17		any other costs necessary for continued
18		operations, provided that "necessary" means, for
19		purposes of this item (iii), that the costs could
20		reasonably be avoided only by ceasing operations
21		of the zero emission facility; and
22		(iv) a commitment to continue operating, for
23		the duration of the contract or contracts executed
24		under the procurement held under this subsection
25		(d-5), the zero emission facility that produces
26		the zero emission credits to be procured in the

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1		procurement.
2		The information described in item (iii) of this
3		subparagraph (A) may be submitted on a confidential
4		basis and shall be treated and maintained by the
5		Agency, the procurement administrator, and the
6		Commission as confidential and proprietary and exempt
7		from disclosure under subparagraphs (a) and (g) of
8		paragraph (1) of Section 7 of the Freedom of
9		Information Act. The Office of Attorney General shall
10		have access to, and maintain the confidentiality of,
11		such information pursuant to Section 6.5 of the
12		Attorney General Act.
13		(B) The price for each zero emission credit
14		procured under this subsection (d-5) for each delivery
15		year shall be in an amount that equals the Social Cost
16		of Carbon, expressed on a price per megawatthour
17		basis. However, to ensure that the procurement remains
18		affordable to retail customers in this State if
19		electricity prices increase, the price in an
20		applicable delivery year shall be reduced below the
21		Social Cost of Carbon by the amount ("Price
22		Adjustment") by which the market price index for the
23		applicable delivery year exceeds the baseline market
24		price index for the consecutive 12-month period ending
25		May 31, 2016. If the Price Adjustment is greater than
26		or equal to the Social Cost of Carbon in an applicable

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1		delivery year, then no payments shall be due in that
2		delivery year. The components of this calculation are
3		defined as follows:
4		(i) Social Cost of Carbon: The Social Cost of
5		Carbon is $16.50 per megawatthour, which is based
6		on the U.S. Interagency Working Group on Social
7		Cost of Carbon's price in the August 2016
8		Technical Update using a 3% discount rate,
9		adjusted for inflation for each year of the
10		program. Beginning with the delivery year
11		commencing June 1, 2023, the price per
12		megawatthour shall increase by $1 per
13		megawatthour, and continue to increase by an
14		additional $1 per megawatthour each delivery year
15		thereafter.
16		(ii) Baseline market price index: The baseline
17		market price index for the consecutive 12-month
18		period ending May 31, 2016 is $31.40 per
19		megawatthour, which is based on the sum of (aa)
20		the average day-ahead energy price across all
21		hours of such 12-month period at the PJM
22		Interconnection LLC Northern Illinois Hub, (bb)
23		50% multiplied by the Base Residual Auction, or
24		its successor, capacity price for the rest of the
25		RTO zone group determined by PJM Interconnection
26		LLC, divided by 24 hours per day, and (cc) 50%

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1		multiplied by the Planning Resource Auction, or
2		its successor, capacity price for Zone 4
3		determined by the Midcontinent Independent System
4		Operator, Inc., divided by 24 hours per day.
5		(iii) Market price index: The market price
6		index for a delivery year shall be the sum of
7		projected energy prices and projected capacity
8		prices determined as follows:
9		(aa) Projected energy prices: the
10		projected energy prices for the applicable
11		delivery year shall be calculated once for the
12		year using the forward market price for the
13		PJM Interconnection, LLC Northern Illinois
14		Hub. The forward market price shall be
15		calculated as follows: the energy forward
16		prices for each month of the applicable
17		delivery year averaged for each trade date
18		during the calendar year immediately preceding
19		that delivery year to produce a single energy
20		forward price for the delivery year. The
21		forward market price calculation shall use
22		data published by the Intercontinental
23		Exchange, or its successor.
24		(bb) Projected capacity prices:
25		(I) For the delivery years commencing
26		June 1, 2017, June 1, 2018, and June 1,

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

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1		administered by the Midcontinent
2		Independent System Operator, Inc., in
3		which the largest percentage of load
4		cleared for Local Resource Zone 4, divided
5		by 24 hours per day, and where such price
6		is determined by the Midcontinent
7		Independent System Operator, Inc.
8		For purposes of this subsection (d-5):
9		"Rest of the RTO" and "ComEd Zone" shall have
10		the meaning ascribed to them by PJM
11		Interconnection, LLC.
12		"RTO" means regional transmission
13		organization.
14		(C) No later than 45 days after June 1, 2017 (the
15		effective date of Public Act 99-906), the Agency shall
16		publish its proposed zero emission standard
17		procurement plan. The plan shall be consistent with
18		the provisions of this paragraph (1) and shall provide
19		that winning bids shall be selected based on public
20		interest criteria that include, but are not limited
21		to, minimizing carbon dioxide emissions that result
22		from electricity consumed in Illinois and minimizing
23		sulfur dioxide, nitrogen oxide, and particulate matter
24		emissions that adversely affect the citizens of this
25		State. In particular, the selection of winning bids
26		shall take into account the incremental environmental

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1		benefits resulting from the procurement, such as any
2		existing environmental benefits that are preserved by
3		the procurements held under Public Act 99-906 and
4		would cease to exist if the procurements were not
5		held, including the preservation of zero emission
6		facilities. The plan shall also describe in detail how
7		each public interest factor shall be considered and
8		weighted in the bid selection process to ensure that
9		the public interest criteria are applied to the
10		procurement and given full effect.
11		For purposes of developing the plan, the Agency
12		shall consider any reports issued by a State agency,
13		board, or commission under House Resolution 1146 of
14		the 98th General Assembly and paragraph (4) of
15		subsection (d) of this Section, as well as publicly
16		available analyses and studies performed by or for
17		regional transmission organizations that serve the
18		State and their independent market monitors.
19		Upon publishing of the zero emission standard
20		procurement plan, copies of the plan shall be posted
21		and made publicly available on the Agency's website.
22		All interested parties shall have 10 days following
23		the date of posting to provide comment to the Agency on
24		the plan. All comments shall be posted to the Agency's
25		website. Following the end of the comment period, but
26		no more than 60 days later than June 1, 2017 (the

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1		effective date of Public Act 99-906), the Agency shall
2		revise the plan as necessary based on the comments
3		received and file its zero emission standard
4		procurement plan with the Commission.
5		If the Commission determines that the plan will
6		result in the procurement of cost-effective zero
7		emission credits, then the Commission shall, after
8		notice and hearing, but no later than 45 days after the
9		Agency filed the plan, approve the plan or approve
10		with modification. For purposes of this subsection
11		(d-5), "cost effective" means the projected costs of
12		procuring zero emission credits from zero emission
13		facilities do not cause the limit stated in paragraph
14		(2) of this subsection to be exceeded.
15		(C-5) As part of the Commission's review and
16		acceptance or rejection of the procurement results,
17		the Commission shall, in its public notice of
18		successful bidders:
19		(i) identify how the winning bids satisfy the
20		public interest criteria described in subparagraph
21		(C) of this paragraph (1) of minimizing carbon
22		dioxide emissions that result from electricity
23		consumed in Illinois and minimizing sulfur
24		dioxide, nitrogen oxide, and particulate matter
25		emissions that adversely affect the citizens of
26		this State;

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1		(ii) specifically address how the selection of
2		winning bids takes into account the incremental
3		environmental benefits resulting from the
4		procurement, including any existing environmental
5		benefits that are preserved by the procurements
6		held under Public Act 99-906 and would have ceased
7		to exist if the procurements had not been held,
8		such as the preservation of zero emission
9		facilities;
10		(iii) quantify the environmental benefit of
11		preserving the resources identified in item (ii)
12		of this subparagraph (C-5), including the
13		following:
14		(aa) the value of avoided greenhouse gas
15		emissions measured as the product of the zero
16		emission facilities' output over the contract
17		term multiplied by the U.S. Environmental
18		Protection Agency eGrid subregion carbon
19		dioxide emission rate and the U.S. Interagency
20		Working Group on Social Cost of Carbon's price
21		in the August 2016 Technical Update using a 3%
22		discount rate, adjusted for inflation for each
23		delivery year; and
24		(bb) the costs of replacement with other
25		zero carbon dioxide resources, including wind
26		and photovoltaic, based upon the simple

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1		average of the following:
2		(I) the price, or if there is more
3		than one price, the average of the prices,
4		paid for renewable energy credits from new
5		utility-scale wind projects in the
6		procurement events specified in item (i)
7		of subparagraph (G) of paragraph (1) of
8		subsection (c) of this Section; and
9		(II) the price, or if there is more
10		than one price, the average of the prices,
11		paid for renewable energy credits from new
12		utility-scale solar projects and
13		brownfield site photovoltaic projects in
14		the procurement events specified in item
15		(ii) of subparagraph (G) of paragraph (1)
16		of subsection (c) of this Section and,
17		after January 1, 2015, renewable energy
18		credits from photovoltaic distributed
19		generation projects in procurement events
20		held under subsection (c) of this Section.
21		Each utility shall enter into binding contractual
22		arrangements with the winning suppliers.
23		The procurement described in this subsection
24		(d-5), including, but not limited to, the execution of
25		all contracts procured, shall be completed no later
26		than May 10, 2017. Based on the effective date of

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1		Public Act 99-906, the Agency and Commission may, as
2		appropriate, modify the various dates and timelines
3		under this subparagraph and subparagraphs (C) and (D)
4		of this paragraph (1). The procurement and plan
5		approval processes required by this subsection (d-5)
6		shall be conducted in conjunction with the procurement
7		and plan approval processes required by subsection (c)
8		of this Section and Section 16-111.5 of the Public
9		Utilities Act, to the extent practicable.
10		Notwithstanding whether a procurement event is
11		conducted under Section 16-111.5 of the Public
12		Utilities Act, the Agency shall immediately initiate a
13		procurement process on June 1, 2017 (the effective
14		date of Public Act 99-906).
15		(D) Following the procurement event described in
16		this paragraph (1) and consistent with subparagraph
17		(B) of this paragraph (1), the Agency shall calculate
18		the payments to be made under each contract for the
19		next delivery year based on the market price index for
20		that delivery year. The Agency shall publish the
21		payment calculations no later than May 25, 2017 and
22		every May 25 thereafter.
23		(E) Notwithstanding the requirements of this
24		subsection (d-5), the contracts executed under this
25		subsection (d-5) shall provide that the zero emission
26		facility may, as applicable, suspend or terminate

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1		performance under the contracts in the following
2		instances:
3		(i) A zero emission facility shall be excused
4		from its performance under the contract for any
5		cause beyond the control of the resource,
6		including, but not restricted to, acts of God,
7		flood, drought, earthquake, storm, fire,
8		lightning, epidemic, war, riot, civil disturbance
9		or disobedience, labor dispute, labor or material
10		shortage, sabotage, acts of public enemy,
11		explosions, orders, regulations or restrictions
12		imposed by governmental, military, or lawfully
13		established civilian authorities, which, in any of
14		the foregoing cases, by exercise of commercially
15		reasonable efforts the zero emission facility
16		could not reasonably have been expected to avoid,
17		and which, by the exercise of commercially
18		reasonable efforts, it has been unable to
19		overcome. In such event, the zero emission
20		facility shall be excused from performance for the
21		duration of the event, including, but not limited
22		to, delivery of zero emission credits, and no
23		payment shall be due to the zero emission facility
24		during the duration of the event.
25		(ii) A zero emission facility shall be
26		permitted to terminate the contract if legislation

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1		is enacted into law by the General Assembly that
2		imposes or authorizes a new tax, special
3		assessment, or fee on the generation of
4		electricity, the ownership or leasehold of a
5		generating unit, or the privilege or occupation of
6		such generation, ownership, or leasehold of
7		generation units by a zero emission facility.
8		However, the provisions of this item (ii) do not
9		apply to any generally applicable tax, special
10		assessment or fee, or requirements imposed by
11		federal law.
12		(iii) A zero emission facility shall be
13		permitted to terminate the contract in the event
14		that the resource requires capital expenditures in
15		excess of $40,000,000 that were neither known nor
16		reasonably foreseeable at the time it executed the
17		contract and that a prudent owner or operator of
18		such resource would not undertake.
19		(iv) A zero emission facility shall be
20		permitted to terminate the contract in the event
21		the Nuclear Regulatory Commission terminates the
22		resource's license.
23		(F) If the zero emission facility elects to
24		terminate a contract under subparagraph (E) of this
25		paragraph (1), then the Commission shall reopen the
26		docket in which the Commission approved the zero

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1		emission standard procurement plan under subparagraph
2		(C) of this paragraph (1) and, after notice and
3		hearing, enter an order acknowledging the contract
4		termination election if such termination is consistent
5		with the provisions of this subsection (d-5).
6		(2) For purposes of this subsection (d-5), the amount
7		paid per kilowatthour means the total amount paid for
8		electric service expressed on a per kilowatthour basis.
9		For purposes of this subsection (d-5), the total amount
10		paid for electric service includes, without limitation,
11		amounts paid for supply, transmission, distribution,
12		surcharges, and add-on taxes.
13		Notwithstanding the requirements of this subsection
14		(d-5), the contracts executed under this subsection (d-5)
15		shall provide that the total of zero emission credits
16		procured under a procurement plan shall be subject to the
17		limitations of this paragraph (2). For each delivery year,
18		the contractual volume receiving payments in such year
19		shall be reduced for all retail customers based on the
20		amount necessary to limit the net increase that delivery
21		year to the costs of those credits included in the amounts
22		paid by eligible retail customers in connection with
23		electric service to no more than 1.65% of the amount paid
24		per kilowatthour by eligible retail customers during the
25		year ending May 31, 2009. The result of this computation
26		shall apply to and reduce the procurement for all retail

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1		customers, and all those customers shall pay the same
2		single, uniform cents per kilowatthour charge under
3		subsection (k) of Section 16-108 of the Public Utilities
4		Act. To arrive at a maximum dollar amount of zero emission
5		credits to be paid for the particular delivery year, the
6		resulting per kilowatthour amount shall be applied to the
7		actual amount of kilowatthours of electricity delivered by
8		the electric utility in the delivery year immediately
9		prior to the procurement, to all retail customers in its
10		service territory. Unpaid contractual volume for any
11		delivery year shall be paid in any subsequent delivery
12		year in which such payments can be made without exceeding
13		the amount specified in this paragraph (2). The
14		calculations required by this paragraph (2) shall be made
15		only once for each procurement plan year. Once the
16		determination as to the amount of zero emission credits to
17		be paid is made based on the calculations set forth in this
18		paragraph (2), no subsequent rate impact determinations
19		shall be made and no adjustments to those contract amounts
20		shall be allowed. All costs incurred under those contracts
21		and in implementing this subsection (d-5) shall be
22		recovered by the electric utility as provided in this
23		Section.
24		No later than June 30, 2019, the Commission shall
25		review the limitation on the amount of zero emission
26		credits procured under this subsection (d-5) and report to

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1		the General Assembly its findings as to whether that
2		limitation unduly constrains the procurement of
3		cost-effective zero emission credits.
4		(3) Six years after the execution of a contract under
5		this subsection (d-5), the Agency shall determine whether
6		the actual zero emission credit payments received by the
7		supplier over the 6-year period exceed the Average ZEC
8		Payment. In addition, at the end of the term of a contract
9		executed under this subsection (d-5), or at the time, if
10		any, a zero emission facility's contract is terminated
11		under subparagraph (E) of paragraph (1) of this subsection
12		(d-5), then the Agency shall determine whether the actual
13		zero emission credit payments received by the supplier
14		over the term of the contract exceed the Average ZEC
15		Payment, after taking into account any amounts previously
16		credited back to the utility under this paragraph (3). If
17		the Agency determines that the actual zero emission credit
18		payments received by the supplier over the relevant period
19		exceed the Average ZEC Payment, then the supplier shall
20		credit the difference back to the utility. The amount of
21		the credit shall be remitted to the applicable electric
22		utility no later than 120 days after the Agency's
23		determination, which the utility shall reflect as a credit
24		on its retail customer bills as soon as practicable;
25		however, the credit remitted to the utility shall not
26		exceed the total amount of payments received by the

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1		facility under its contract.
2		For purposes of this Section, the Average ZEC Payment
3		shall be calculated by multiplying the quantity of zero
4		emission credits delivered under the contract times the
5		average contract price. The average contract price shall
6		be determined by subtracting the amount calculated under
7		subparagraph (B) of this paragraph (3) from the amount
8		calculated under subparagraph (A) of this paragraph (3),
9		as follows:
10		(A) The average of the Social Cost of Carbon, as
11		defined in subparagraph (B) of paragraph (1) of this
12		subsection (d-5), during the term of the contract.
13		(B) The average of the market price indices, as
14		defined in subparagraph (B) of paragraph (1) of this
15		subsection (d-5), during the term of the contract,
16		minus the baseline market price index, as defined in
17		subparagraph (B) of paragraph (1) of this subsection
18		(d-5).
19		If the subtraction yields a negative number, then the
20		Average ZEC Payment shall be zero.
21		(4) Cost-effective zero emission credits procured from
22		zero emission facilities shall satisfy the applicable
23		definitions set forth in Section 1-10 of this Act.
24		(5) The electric utility shall retire all zero
25		emission credits used to comply with the requirements of
26		this subsection (d-5).

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1		(6) Electric utilities shall be entitled to recover
2		all of the costs associated with the procurement of zero
3		emission credits through an automatic adjustment clause
4		tariff in accordance with subsection (k) and (m) of
5		Section 16-108 of the Public Utilities Act, and the
6		contracts executed under this subsection (d-5) shall
7		provide that the utilities' payment obligations under such
8		contracts shall be reduced if an adjustment is required
9		under subsection (m) of Section 16-108 of the Public
10		Utilities Act.
11		(7) This subsection (d-5) shall become inoperative on
12		January 1, 2028.
13		(d-10) Nuclear Plant Assistance; carbon mitigation
14		credits.
15		(1) The General Assembly finds:
16		(A) The health, welfare, and prosperity of all
17		Illinois citizens require that the State of Illinois act
18		to avoid and not increase carbon emissions from electric
19		generation sources while continuing to ensure affordable,
20		stable, and reliable electricity to all citizens.
21		(B) Absent immediate action by the State to preserve
22		existing carbon-free energy resources, those resources may
23		retire, and the electric generation needs of Illinois'
24		retail customers may be met instead by facilities that
25		emit significant amounts of carbon pollution and other
26		harmful air pollutants at a high social and economic cost

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1		until Illinois is able to develop other forms of clean
2		energy.
3		(C) The General Assembly finds that nuclear power
4		generation is necessary for the State's transition to 100%
5		clean energy, and ensuring continued operation of nuclear
6		plants advances environmental and public health interests
7		through providing carbon-free electricity while reducing
8		the air pollution profile of the Illinois energy
9		generation fleet.
10		(D) The clean energy attributes of nuclear generation
11		facilities support the State in its efforts to achieve
12		100% clean energy.
13		(E) The State currently invests in various forms of
14		clean energy, including, but not limited to, renewable
15		energy, energy efficiency, and low-emission vehicles,
16		among others.
17		(F) The Environmental Protection Agency commissioned
18		an independent audit which provided a detailed assessment
19		of the financial condition of the Illinois nuclear fleet
20		to evaluate its financial viability and whether the
21		environmental benefits of such resources were at risk. The
22		report identified the risk of losing the environmental
23		benefits of several specific nuclear units. The report
24		also identified that the LaSalle County Generating Station
25		will continue to operate through 2026 and therefore is not
26		eligible to participate in the carbon mitigation credit

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1		program.
2		(G) Nuclear plants provide carbon-free energy, which
3		helps to avoid many health-related negative impacts for
4		Illinois residents.
5		(H) The procurement of carbon mitigation credits
6		representing the environmental benefits of carbon-free
7		generation will further the State's efforts at achieving
8		100% clean energy and decarbonizing the electricity sector
9		in a safe, reliable, and affordable manner. Further, the
10		procurement of carbon emission credits will enhance the
11		health and welfare of Illinois residents through decreased
12		reliance on more highly polluting generation.
13		(I) The General Assembly therefore finds it necessary
14		to establish carbon mitigation credits to ensure decreased
15		reliance on more carbon-intensive energy resources, for
16		transitioning to a fully decarbonized electricity sector,
17		and to help ensure health and welfare of the State's
18		residents.
19		(2) As used in this subsection:
20		"Baseline costs" means costs used to establish a customer
21		protection cap that have been evaluated through an independent
22		audit of a carbon-free energy resource conducted by the
23		Environmental Protection Agency that evaluated projected
24		annual costs for operation and maintenance expenses; fully
25		allocated overhead costs, which shall be allocated using the
26		methodology developed by the Institute for Nuclear Power

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1		Operations; fuel expenditures; nonfuel capital expenditures;
2		spent fuel expenditures; a return on working capital; the cost
3		of operational and market risks that could be avoided by
4		ceasing operation; and any other costs necessary for continued
5		operations, provided that "necessary" means, for purposes of
6		this definition, that the costs could reasonably be avoided
7		only by ceasing operations of the carbon-free energy resource.
8		"Carbon mitigation credit" means a tradable credit that
9		represents the carbon emission reduction attributes of one
10		megawatt-hour of energy produced from a carbon-free energy
11		resource.
12		"Carbon-free energy resource" means a generation facility
13		that: (1) is fueled by nuclear power; and (2) is
14		interconnected to PJM Interconnection, LLC.
15		(3) Procurement.
16		(A) Beginning with the delivery year commencing on
17		June 1, 2022, the Agency shall, for electric utilities
18		serving at least 3,000,000 retail customers in the State,
19		seek to procure contracts for no more than approximately
20		54,500,000 cost-effective carbon mitigation credits from
21		carbon-free energy resources because such credits are
22		necessary to support current levels of carbon-free energy
23		generation and ensure the State meets its carbon dioxide
24		emissions reduction goals. The Agency shall not make a
25		partial award of a contract for carbon mitigation credits
26		covering a fractional amount of a carbon-free energy

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1		resource's projected output.
2		(B) Each carbon-free energy resource that intends to
3		participate in a procurement shall be required to submit
4		to the Agency the following information for the resource
5		on or before the date established by the Agency:
6		(i) the in-service date and remaining useful life
7		of the carbon-free energy resource;
8		(ii) the amount of power generated annually for
9		each of the past 10 years, which shall be used to
10		determine the capability of each facility;
11		(iii) a commitment to be reflected in any contract
12		entered into pursuant to this subsection (d-10) to
13		continue operating the carbon-free energy resource at
14		a capacity factor of at least 88% annually on average
15		for the duration of the contract or contracts executed
16		under the procurement held under this subsection
17		(d-10), except in an instance described in
18		subparagraph (E) of paragraph (1) of subsection (d-5)
19		of this Section or made impracticable as a result of
20		compliance with law or regulation;
21		(iv) financial need and the risk of loss of the
22		environmental benefits of such resource, which shall
23		include the following information:
24		(I) the carbon-free energy resource's cost
25		projections, expressed on a per megawatt-hour
26		basis, over the next 5 delivery years, which shall

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1		include the following: operation and maintenance
2		expenses; fully allocated overhead costs, which
3		shall be allocated using the methodology developed
4		by the Institute for Nuclear Power Operations;
5		fuel expenditures; nonfuel capital expenditures;
6		spent fuel expenditures; a return on working
7		capital; the cost of operational and market risks
8		that could be avoided by ceasing operation; and
9		any other costs necessary for continued
10		operations, provided that "necessary" means, for
11		purposes of this subitem (I), that the costs could
12		reasonably be avoided only by ceasing operations
13		of the carbon-free energy resource; and
14		(II) the carbon-free energy resource's revenue
15		projections, including energy, capacity, ancillary
16		services, any other direct State support, known or
17		anticipated federal attribute credits, known or
18		anticipated tax credits, and any other direct
19		federal support.
20		The information described in this subparagraph (B) may
21		be submitted on a confidential basis and shall be treated
22		and maintained by the Agency, the procurement
23		administrator, and the Commission as confidential and
24		proprietary and exempt from disclosure under subparagraphs
25		(a) and (g) of paragraph (1) of Section 7 of the Freedom of
26		Information Act. The Office of the Attorney General shall

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1		have access to, and maintain the confidentiality of, such
2		information pursuant to Section 6.5 of the Attorney
3		General Act.
4		(C) The Agency shall solicit bids for the contracts
5		described in this subsection (d-10) from carbon-free
6		energy resources that have satisfied the requirements of
7		subparagraph (B) of this paragraph (3). The contracts
8		procured pursuant to a procurement event shall reflect,
9		and be subject to, the following terms, requirements, and
10		limitations:
11		(i) Contracts are for delivery of carbon
12		mitigation credits, and are not energy or capacity
13		sales contracts requiring physical delivery. Pursuant
14		to item (iii), contract payments shall fully deduct
15		the value of any monetized federal production tax
16		credits, credits issued pursuant to a federal clean
17		energy standard, and other federal credits if
18		applicable.
19		(ii) Contracts for carbon mitigation credits shall
20		commence with the delivery year beginning on June 1,
21		2022 and shall be for a term of 5 delivery years
22		concluding on May 31, 2027.
23		(iii) The price per carbon mitigation credit to be
24		paid under a contract for a given delivery year shall
25		be equal to an accepted bid price less the sum of:
26		(I) one of the following energy price indices,

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1		selected by the bidder at the time of the bid for
2		the term of the contract:
3		(aa) the weighted-average hourly day-ahead
4		price for the applicable delivery year at the
5		busbar of all resources procured pursuant to
6		this subsection (d-10), weighted by actual
7		production from the resources; or
8		(bb) the projected energy price for the
9		PJM Interconnection, LLC Northern Illinois Hub
10		for the applicable delivery year determined
11		according to subitem (aa) of item (iii) of
12		subparagraph (B) of paragraph (1) of
13		subsection (d-5).
14		(II) the Base Residual Auction Capacity Price
15		for the ComEd zone as determined by PJM
16		Interconnection, LLC, divided by 24 hours per day,
17		for the applicable delivery year for the first 3
18		delivery years, and then any subsequent delivery
19		years unless the PJM Interconnection, LLC applies
20		the Minimum Offer Price Rule to participating
21		carbon-free energy resources because they supply
22		carbon mitigation credits pursuant to this Section
23		at which time, upon notice by the carbon-free
24		energy resource to the Commission and subject to
25		the Commission's confirmation, the value under
26		this subitem shall be zero, as further described

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1		in the carbon mitigation credit procurement plan;
2		and
3		(III) any value of monetized federal tax
4		credits, direct payments, or similar subsidy
5		provided to the carbon-free energy resource from
6		any unit of government that is not already
7		reflected in energy prices.
8		If the price-per-megawatt-hour calculation
9		performed under item (iii) of this subparagraph (C)
10		for a given delivery year results in a net positive
11		value, then the electric utility counterparty to the
12		contract shall multiply such net value by the
13		applicable contract quantity and remit the amount to
14		the supplier.
15		To protect retail customers from retail rate
16		impacts that may arise upon the initiation of carbon
17		policy changes, if the price-per-megawatt-hour
18		calculation performed under item (iii) of this
19		subparagraph (C) for a given delivery year results in
20		a net negative value, then the supplier counterparty
21		to the contract shall multiply such net value by the
22		applicable contract quantity and remit such amount to
23		the electric utility counterparty. The electric
24		utility shall reflect such amounts remitted by
25		suppliers as a credit on its retail customer bills as
26		soon as practicable.

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1		(iv) To ensure that retail customers in Northern
2		Illinois do not pay more for carbon mitigation credits
3		than the value such credits provide, and
4		notwithstanding the provisions of this subsection
5		(d-10), the Agency shall not accept bids for contracts
6		that exceed a customer protection cap equal to the
7		baseline costs of carbon-free energy resources.
8		The baseline costs for the applicable year shall
9		be the following:
10		(I) For the delivery year beginning June 1,
11		2022, the baseline costs shall be an amount equal
12		to $30.30 per megawatt-hour.
13		(II) For the delivery year beginning June 1,
14		2023, the baseline costs shall be an amount equal
15		to $32.50 per megawatt-hour.
16		(III) For the delivery year beginning June 1,
17		2024, the baseline costs shall be an amount equal
18		to $33.43 per megawatt-hour.
19		(IV) For the delivery year beginning June 1,
20		2025, the baseline costs shall be an amount equal
21		to $33.50 per megawatt-hour.
22		(V) For the delivery year beginning June 1,
23		2026, the baseline costs shall be an amount equal
24		to $34.50 per megawatt-hour.
25		An Environmental Protection Agency consultant
26		forecast, included in a report issued April 14, 2021,

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1		projects that a carbon-free energy resource has the
2		opportunity to earn on average approximately $30.28
3		per megawatt-hour, for the sale of energy and capacity
4		during the time period between 2022 and 2027.
5		Therefore, the sale of carbon mitigation credits
6		provides the opportunity to receive an additional
7		amount per megawatt-hour in addition to the projected
8		prices for energy and capacity.
9		Although actual energy and capacity prices may
10		vary from year-to-year, the General Assembly finds
11		that this customer protection cap will help ensure
12		that the cost of carbon mitigation credits will be
13		less than its value, based upon the social cost of
14		carbon identified in the Technical Support Document
15		issued in February 2021 by the U.S. Interagency
16		Working Group on Social Cost of Greenhouse Gases and
17		the PJM Interconnection, LLC carbon dioxide marginal
18		emission rate for 2020, and that a carbon-free energy
19		resource receiving payment for carbon mitigation
20		credits receives no more than necessary to keep those
21		units in operation.
22		(D) No later than 7 days after the effective date of
23		this amendatory Act of the 102nd General Assembly, the
24		Agency shall publish its proposed carbon mitigation credit
25		procurement plan. The Plan shall provide that winning bids
26		shall be selected by taking into consideration which

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1		resources best match public interest criteria that
2		include, but are not limited to, minimizing carbon dioxide
3		emissions that result from electricity consumed in
4		Illinois and minimizing sulfur dioxide, nitrogen oxide,
5		and particulate matter emissions that adversely affect the
6		citizens of this State. The selection of winning bids
7		shall also take into account the incremental environmental
8		benefits resulting from the procurement or procurements,
9		such as any existing environmental benefits that are
10		preserved by a procurement held under this subsection
11		(d-10) and would cease to exist if the procurement were
12		not held, including the preservation of carbon-free energy
13		resources. For those bidders having the same public
14		interest criteria score, the relative ranking of such
15		bidders shall be determined by price. The Plan shall
16		describe in detail how each public interest factor shall
17		be considered and weighted in the bid selection process to
18		ensure that the public interest criteria are applied to
19		the procurement. The Plan shall, to the extent practical
20		and permissible by federal law, ensure that successful
21		bidders make commercially reasonable efforts to apply for
22		federal tax credits, direct payments, or similar subsidy
23		programs that support carbon-free generation and for which
24		the successful bidder is eligible. Upon publishing of the
25		carbon mitigation credit procurement plan, copies of the
26		plan shall be posted and made publicly available on the

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1		Agency's website. All interested parties shall have 7 days
2		following the date of posting to provide comment to the
3		Agency on the plan. All comments shall be posted to the
4		Agency's website. Following the end of the comment period,
5		but no more than 19 days later than the effective date of
6		this amendatory Act of the 102nd General Assembly, the
7		Agency shall revise the plan as necessary based on the
8		comments received and file its carbon mitigation credit
9		procurement plan with the Commission.
10		(E) If the Commission determines that the plan is
11		likely to result in the procurement of cost-effective
12		carbon mitigation credits, then the Commission shall,
13		after notice and hearing and opportunity for comment, but
14		no later than 42 days after the Agency filed the plan,
15		approve the plan or approve it with modification. For
16		purposes of this subsection (d-10), "cost-effective" means
17		carbon mitigation credits that are procured from
18		carbon-free energy resources at prices that are within the
19		limits specified in this paragraph (3). As part of the
20		Commission's review and acceptance or rejection of the
21		procurement results, the Commission shall, in its public
22		notice of successful bidders:
23		(i) identify how the selected carbon-free energy
24		resources satisfy the public interest criteria
25		described in this paragraph (3) of minimizing carbon
26		dioxide emissions that result from electricity

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1		consumed in Illinois and minimizing sulfur dioxide,
2		nitrogen oxide, and particulate matter emissions that
3		adversely affect the citizens of this State;
4		(ii) specifically address how the selection of
5		carbon-free energy resources takes into account the
6		incremental environmental benefits resulting from the
7		procurement, including any existing environmental
8		benefits that are preserved by the procurements held
9		under this amendatory Act of the 102nd General
10		Assembly and would have ceased to exist if the
11		procurements had not been held, such as the
12		preservation of carbon-free energy resources;
13		(iii) quantify the environmental benefit of
14		preserving the carbon-free energy resources procured
15		pursuant to this subsection (d-10), including the
16		following:
17		(I) an assessment value of avoided greenhouse
18		gas emissions measured as the product of the
19		carbon-free energy resources' output over the
20		contract term, using generally accepted
21		methodologies for the valuation of avoided
22		emissions; and
23		(II) an assessment of costs of replacement
24		with other carbon-free energy resources and
25		renewable energy resources, including wind and
26		photovoltaic generation, based upon an assessment

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1		of the prices paid for renewable energy credits
2		through programs and procurements conducted
3		pursuant to subsection (c) of Section 1-75 of this
4		Act, and the additional storage necessary to
5		produce the same or similar capability of matching
6		customer usage patterns.
7		(F) The procurements described in this paragraph (3),
8		including, but not limited to, the execution of all
9		contracts procured, shall be completed no later than
10		December 3, 2021. The procurement and plan approval
11		processes required by this paragraph (3) shall be
12		conducted in conjunction with the procurement and plan
13		approval processes required by Section 16-111.5 of the
14		Public Utilities Act, to the extent practicable. However,
15		the Agency and Commission may, as appropriate, modify the
16		various dates and timelines under this subparagraph and
17		subparagraphs (D) and (E) of this paragraph (3) to meet
18		the December 3, 2021 contract execution deadline.
19		Following the completion of such procurements, and
20		consistent with this paragraph (3), the Agency shall
21		calculate the payments to be made under each contract in a
22		timely fashion.
23		(F-1) Costs incurred by the electric utility pursuant
24		to a contract authorized by this subsection (d-10) shall
25		be deemed prudently incurred and reasonable in amount, and
26		the electric utility shall be entitled to full cost

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1		recovery pursuant to a tariff or tariffs filed with the
2		Commission.
3		(G) The counterparty electric utility shall retire all
4		carbon mitigation credits used to comply with the
5		requirements of this subsection (d-10).
6		(H) If a carbon-free energy resource is sold to
7		another owner, the rights, obligations, and commitments
8		under this subsection (d-10) shall continue to the
9		subsequent owner.
10		(I) This subsection (d-10) shall become inoperative on
11		January 1, 2028.
12		(e) The draft procurement plans are subject to public
13		comment, as required by Section 16-111.5 of the Public
14		Utilities Act.
15		(f) The Agency shall submit the final procurement plan to
16		the Commission. The Agency shall revise a procurement plan if
17		the Commission determines that it does not meet the standards
18		set forth in Section 16-111.5 of the Public Utilities Act.
19		(g) The Agency shall assess fees to each affected utility
20		to recover the costs incurred in preparation of the annual
21		procurement plan for the utility.
22		(h) The Agency shall assess fees to each bidder to recover
23		the costs incurred in connection with a competitive
24		procurement process.
25		(i) A renewable energy credit, carbon emission credit,
26		zero emission credit, or carbon mitigation credit can only be

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1		used once to comply with a single portfolio or other standard
2		as set forth in subsection (c), subsection (d), or subsection
3		(d-5) of this Section, respectively. A renewable energy
4		credit, carbon emission credit, zero emission credit, or
5		carbon mitigation credit cannot be used to satisfy the
6		requirements of more than one standard. If more than one type
7		of credit is issued for the same megawatt hour of energy, only
8		one credit can be used to satisfy the requirements of a single
9		standard. After such use, the credit must be retired together
10		with any other credits issued for the same megawatt hour of
11		energy.
12		(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
13		102-662, eff. 9-15-21.)
14		(Text of Section after amendment by P.A. 103-380)
15		Sec. 1-75. Planning and Procurement Bureau. The Planning
16		and Procurement Bureau has the following duties and
17		responsibilities:
18		(a) The Planning and Procurement Bureau shall each year,
19		beginning in 2008, develop procurement plans and conduct
20		competitive procurement processes in accordance with the
21		requirements of Section 16-111.5 of the Public Utilities Act
22		for the eligible retail customers of electric utilities that
23		on December 31, 2005 provided electric service to at least
24		100,000 customers in Illinois. Beginning with the delivery
25		year commencing on June 1, 2017, the Planning and Procurement

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1		Bureau shall develop plans and processes for the procurement
2		of zero emission credits from zero emission facilities in
3		accordance with the requirements of subsection (d-5) of this
4		Section. Beginning on the effective date of this amendatory
5		Act of the 102nd General Assembly, the Planning and
6		Procurement Bureau shall develop plans and processes for the
7		procurement of carbon mitigation credits from carbon-free
8		energy resources in accordance with the requirements of
9		subsection (d-10) of this Section. The Planning and
10		Procurement Bureau shall also develop procurement plans and
11		conduct competitive procurement processes in accordance with
12		the requirements of Section 16-111.5 of the Public Utilities
13		Act for the eligible retail customers of small
14		multi-jurisdictional electric utilities that (i) on December
15		31, 2005 served less than 100,000 customers in Illinois and
16		(ii) request a procurement plan for their Illinois
17		jurisdictional load. This Section shall not apply to a small
18		multi-jurisdictional utility until such time as a small
19		multi-jurisdictional utility requests the Agency to prepare a
20		procurement plan for their Illinois jurisdictional load. For
21		the purposes of this Section, the term "eligible retail
22		customers" has the same definition as found in Section
23		16-111.5(a) of the Public Utilities Act.
24		Beginning with the plan or plans to be implemented in the
25		2017 delivery year, the Agency shall no longer include the
26		procurement of renewable energy resources in the annual

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1		procurement plans required by this subsection (a), except as
2		provided in subsection (q) of Section 16-111.5 of the Public
3		Utilities Act, and shall instead develop a long-term renewable
4		resources procurement plan in accordance with subsection (c)
5		of this Section and Section 16-111.5 of the Public Utilities
6		Act.
7		In accordance with subsection (c-5) of this Section, the
8		Planning and Procurement Bureau shall oversee the procurement
9		by electric utilities that served more than 300,000 retail
10		customers in this State as of January 1, 2019 of renewable
11		energy credits from new utility-scale solar projects to be
12		installed, along with energy storage facilities, at or
13		adjacent to the sites of electric generating facilities that,
14		as of January 1, 2016, burned coal as their primary fuel
15		source.
16		(1) The Agency shall each year, beginning in 2008, as
17		needed, issue a request for qualifications for experts or
18		expert consulting firms to develop the procurement plans
19		in accordance with Section 16-111.5 of the Public
20		Utilities Act. In order to qualify an expert or expert
21		consulting firm must have:
22		(A) direct previous experience assembling
23		large-scale power supply plans or portfolios for
24		end-use customers;
25		(B) an advanced degree in economics, mathematics,
26		engineering, risk management, or a related area of

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

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

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

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

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1		The Agency shall review, and may revise on an expedited
2		basis, the long-term renewable resources procurement plan
3		at least every 2 years, which shall be conducted in
4		conjunction with the procurement plan under Section
5		16-111.5 of the Public Utilities Act to the extent
6		practicable to minimize administrative expense. No later
7		than 120 days after the effective date of this amendatory
8		Act of the 103rd General Assembly, the Agency shall
9		release for comment a revision to the long-term renewable
10		resources procurement plan, updating elements of the most
11		recently approved plan as needed to comply with this
12		amendatory Act of the 103rd General Assembly, and any
13		long-term renewable resources procurement plan update
14		published by the Agency but not yet approved by the
15		Illinois Commerce Commission shall be withdrawn. The
16		long-term renewable resources procurement plans shall be
17		subject to review and approval by the Commission under
18		Section 16-111.5 of the Public Utilities Act.
19		(B) Subject to subparagraph (F) of this paragraph (1),
20		the long-term renewable resources procurement plan shall
21		attempt to meet the goals for procurement of renewable
22		energy credits at levels of at least the following overall
23		percentages: 13% by the 2017 delivery year; increasing by
24		at least 1.5% each delivery year thereafter to at least
25		25% by the 2025 delivery year; increasing by at least 3%
26		each delivery year thereafter to at least 40% by the 2030

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

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1		utility's load for retail customers who are not eligible
2		retail customers, which applicable portion shall equal 50%
3		of the utility's load for retail customers who are not
4		eligible retail customers on February 28, 2017.
5		For the delivery year beginning June 1, 2018, the
6		procurement plan shall attempt to include, subject to the
7		prioritization outlined in this subparagraph (B),
8		cost-effective renewable energy resources equal to at
9		least 14.5% of each utility's load for eligible retail
10		customers and 14.5% of the applicable portion of each
11		utility's load for retail customers who are not eligible
12		retail customers, which applicable portion shall equal 75%
13		of the utility's load for retail customers who are not
14		eligible retail customers on February 28, 2017.
15		For the delivery year beginning June 1, 2019, and for
16		each year thereafter, the procurement plans shall attempt
17		to include, subject to the prioritization outlined in this
18		subparagraph (B), cost-effective renewable energy
19		resources equal to a minimum percentage of each utility's
20		load for all retail customers as follows: 16% by June 1,
21		2019; increasing by 1.5% each year thereafter to 25% by
22		June 1, 2025; and 25% by June 1, 2026; increasing by at
23		least 3% each delivery year thereafter to at least 40% by
24		the 2030 delivery year, and continuing at no less than 40%
25		for each delivery year thereafter. The Agency shall
26		attempt to procure 50% by delivery year 2040. The Agency

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1		shall determine the annual increase between delivery year
2		2030 and delivery year 2040, if any, taking into account
3		energy demand, other energy resources, and other public
4		policy goals.
5		For each delivery year, the Agency shall first
6		recognize each utility's obligations for that delivery
7		year under existing contracts. Any renewable energy
8		credits under existing contracts, including renewable
9		energy credits as part of renewable energy resources,
10		shall be used to meet the goals set forth in this
11		subsection (c) for the delivery year.
12		(C) The long-term renewable resources procurement plan
13		described in subparagraph (A) of this paragraph (1) shall
14		include the procurement of renewable energy credits from
15		new projects pursuant to the following terms:
16		(i) At least 10,000,000 renewable energy credits
17		delivered annually by the end of the 2021 delivery
18		year, and increasing ratably to reach 45,000,000
19		renewable energy credits delivered annually from new
20		wind and solar projects by the end of delivery year
21		2030 such that the goals in subparagraph (B) of this
22		paragraph (1) are met entirely by procurements of
23		renewable energy credits from new wind and
24		photovoltaic projects. Of that amount, to the extent
25		possible, the Agency shall procure 45% from wind and
26		hydropower projects and 55% from photovoltaic

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1		projects. Of the amount to be procured from
2		photovoltaic projects, the Agency shall procure: at
3		least 50% from solar photovoltaic projects using the
4		program outlined in subparagraph (K) of this paragraph
5		(1) from distributed renewable energy generation
6		devices or community renewable generation projects; at
7		least 47% from utility-scale solar projects; at least
8		3% from brownfield site photovoltaic projects that are
9		not community renewable generation projects.
10		In developing the long-term renewable resources
11		procurement plan, the Agency shall consider other
12		approaches, in addition to competitive procurements,
13		that can be used to procure renewable energy credits
14		from brownfield site photovoltaic projects and thereby
15		help return blighted or contaminated land to
16		productive use while enhancing public health and the
17		well-being of Illinois residents, including those in
18		environmental justice communities, as defined using
19		existing methodologies and findings used by the Agency
20		and its Administrator in its Illinois Solar for All
21		Program. The Agency shall also consider other
22		approaches, in addition to competitive procurements,
23		to procure renewable energy credits from new and
24		existing hydropower facilities to support the
25		development and maintenance of these facilities. The
26		Agency shall explore options to convert existing dams

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1		but shall not consider approaches to develop new dams
2		where they do not already exist.
3		(ii) In any given delivery year, if forecasted
4		expenses are less than the maximum budget available
5		under subparagraph (E) of this paragraph (1), the
6		Agency shall continue to procure new renewable energy
7		credits until that budget is exhausted in the manner
8		outlined in item (i) of this subparagraph (C).
9		(iii) For purposes of this Section:
10		"New wind projects" means wind renewable energy
11		facilities that are energized after June 1, 2017 for
12		the delivery year commencing June 1, 2017.
13		"New photovoltaic projects" means photovoltaic
14		renewable energy facilities that are energized after
15		June 1, 2017. Photovoltaic projects developed under
16		Section 1-56 of this Act shall not apply towards the
17		new photovoltaic project requirements in this
18		subparagraph (C).
19		For purposes of calculating whether the Agency has
20		procured enough new wind and solar renewable energy
21		credits required by this subparagraph (C), renewable
22		energy facilities that have a multi-year renewable
23		energy credit delivery contract with the utility
24		through at least delivery year 2030 shall be
25		considered new, however no renewable energy credits
26		from contracts entered into before June 1, 2021 shall

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1		be used to calculate whether the Agency has procured
2		the correct proportion of new wind and new solar
3		contracts described in this subparagraph (C) for
4		delivery year 2021 and thereafter.
5		(D) Renewable energy credits shall be cost effective.
6		For purposes of this subsection (c), "cost effective"
7		means that the costs of procuring renewable energy
8		resources do not cause the limit stated in subparagraph
9		(E) of this paragraph (1) to be exceeded and, for
10		renewable energy credits procured through a competitive
11		procurement event, do not exceed benchmarks based on
12		market prices for like products in the region. For
13		purposes of this subsection (c), "like products" means
14		contracts for renewable energy credits from the same or
15		substantially similar technology, same or substantially
16		similar vintage (new or existing), the same or
17		substantially similar quantity, and the same or
18		substantially similar contract length and structure.
19		Benchmarks shall reflect development, financing, or
20		related costs resulting from requirements imposed through
21		other provisions of State law, including, but not limited
22		to, requirements in subparagraphs (P) and (Q) of this
23		paragraph (1) and the Renewable Energy Facilities
24		Agricultural Impact Mitigation Act. Confidential
25		benchmarks shall be developed by the procurement
26		administrator, in consultation with the Commission staff,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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1		available price forecast data and additional
2		budget dollars shall be obligated or reobligated
3		as appropriate.
4		(4) To ensure that indexed renewable energy
5		credit prices remain predictable and affordable,
6		the Agency may consider the institution of a price
7		collar on REC prices paid under indexed renewable
8		energy credit procurements establishing floor and
9		ceiling REC prices applicable to indexed REC
10		contract prices. Any price collars applicable to
11		indexed REC procurements shall be proposed by the
12		Agency through its long-term renewable resources
13		procurement plan.
14		(vi) All procurements under this subparagraph (G),
15		including the procurement of renewable energy credits
16		from hydropower facilities, shall comply with the
17		geographic requirements in subparagraph (I) of this
18		paragraph (1) and shall follow the procurement
19		processes and procedures described in this Section and
20		Section 16-111.5 of the Public Utilities Act to the
21		extent practicable, and these processes and procedures
22		may be expedited to accommodate the schedule
23		established by this subparagraph (G).
24		(vii) On and after the effective date of this
25		amendatory Act of the 103rd General Assembly, for all
26		procurements of renewable energy credits from

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

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

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

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

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

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

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

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

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

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

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1		more than 25 kilowatts and no more than 5,000
2		kilowatts. The Agency may create sub-categories within
3		this category to account for the differences between
4		projects for small commercial customers, large
5		commercial customers, and public or non-profit
6		customers.
7		(iii) At least 30% from photovoltaic community
8		renewable generation projects. Capacity for this
9		category for the first 2 delivery years after the
10		effective date of this amendatory Act of the 102nd
11		General Assembly shall be allocated to waitlist
12		projects as provided in paragraph (3) of item (iv) of
13		subparagraph (G). Starting in the third delivery year
14		after the effective date of this amendatory Act of the
15		102nd General Assembly or earlier if the Agency
16		determines there is additional capacity needed for to
17		meet previous delivery year requirements, the
18		following shall apply:
19		(1) the Agency shall select projects on a
20		first-come, first-serve basis, however the Agency
21		may suggest additional methods to prioritize
22		projects that are submitted at the same time;
23		(2) projects shall have subscriptions of 25 kW
24		or less for at least 50% of the facility's
25		nameplate capacity and the Agency shall price the
26		renewable energy credits with that as a factor;

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

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

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

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

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

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1		benefit from regular use of that facility.
2		Terms and guidance within these criteria that are
3		not defined in this item (v) shall be defined by the
4		Agency, with stakeholder input, during the development
5		of the Agency's long-term renewable resources
6		procurement plan. The Agency shall develop regular
7		opportunities for projects to submit applications for
8		projects under this category, and develop selection
9		criteria that gives preference to projects that better
10		meet individual criteria as well as projects that
11		address a higher number of criteria.
12		(vi) At least 10% from distributed renewable
13		energy generation devices, which includes distributed
14		renewable energy devices with a nameplate capacity
15		under 5,000 kilowatts or photovoltaic community
16		renewable generation projects, from applicants that
17		are equity eligible contractors. The Agency may create
18		subcategories within this category to account for the
19		differences between project size and type. The Agency
20		shall propose to increase the percentage in this item
21		(vi) over time to 40% based on factors, including, but
22		not limited to, the number of equity eligible
23		contractors and capacity used in this item (vi) in
24		previous delivery years.
25		The Agency shall propose a payment structure for
26		contracts executed pursuant to this paragraph under

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1		which, upon a demonstration of qualification or need,
2		applicant firms are advanced capital disbursed after
3		contract execution but before the contracted project's
4		energization. The amount or percentage of capital
5		advanced prior to project energization shall be
6		sufficient to both cover any increase in development
7		costs resulting from prevailing wage requirements or
8		project-labor agreements, and designed to overcome
9		barriers in access to capital faced by equity eligible
10		contractors. The amount or percentage of advanced
11		capital may vary by subcategory within this category
12		and by an applicant's demonstration of need, with such
13		levels to be established through the Long-Term
14		Renewable Resources Procurement Plan authorized under
15		subparagraph (A) of paragraph (1) of subsection (c) of
16		this Section.
17		Contracts developed featuring capital advanced
18		prior to a project's energization shall feature
19		provisions to ensure both the successful development
20		of applicant projects and the delivery of the
21		renewable energy credits for the full term of the
22		contract, including ongoing collateral requirements
23		and other provisions deemed necessary by the Agency,
24		and may include energization timelines longer than for
25		comparable project types. The percentage or amount of
26		capital advanced prior to project energization shall

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1		not operate to increase the overall contract value,
2		however contracts executed under this subparagraph may
3		feature renewable energy credit prices higher than
4		those offered to similar projects participating in
5		other categories. Capital advanced prior to
6		energization shall serve to reduce the ratable
7		payments made after energization under items (ii) and
8		(iii) of subparagraph (L) or payments made for each
9		renewable energy credit delivery under item (iv) of
10		subparagraph (L).
11		(vii) The remaining capacity shall be allocated by
12		the Agency in order to respond to market demand. The
13		Agency shall allocate any discretionary capacity prior
14		to the beginning of each delivery year.
15		To the extent there is uncontracted capacity from any
16		block in any of categories (i) through (vi) at the end of a
17		delivery year, the Agency shall redistribute that capacity
18		to one or more other categories giving priority to
19		categories with projects on a waitlist. The redistributed
20		capacity shall be added to the annual capacity in the
21		subsequent delivery year, and the price for renewable
22		energy credits shall be the price for the new delivery
23		year. Redistributed capacity shall not be considered
24		redistributed when determining whether the goals in this
25		subsection (K) have been met.
26		Notwithstanding anything to the contrary, as the

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1		Agency increases the capacity in item (vi) to 40% over
2		time, the Agency may reduce the capacity of items (i)
3		through (v) proportionate to the capacity of the
4		categories of projects in item (vi), to achieve a balance
5		of project types.
6		The Adjustable Block program shall be designed to
7		ensure that renewable energy credits are procured from
8		projects in diverse locations and are not concentrated in
9		a few regional areas.
10		(L) Notwithstanding provisions for advancing capital
11		prior to project energization found in item (vi) of
12		subparagraph (K), the procurement of photovoltaic
13		renewable energy credits under items (i) through (vi) of
14		subparagraph (K) of this paragraph (1) shall otherwise be
15		subject to the following contract and payment terms:
16		(i) (Blank).
17		(ii) For those renewable energy credits that
18		qualify and are procured under item (i) of
19		subparagraph (K) of this paragraph (1), and any
20		similar category projects that are procured under item
21		(vi) of subparagraph (K) of this paragraph (1) that
22		qualify and are procured under item (vi), the contract
23		length shall be 15 years. The renewable energy credit
24		delivery contract value shall be paid in full, based
25		on the estimated generation during the first 15 years
26		of operation, by the contracting utilities at the time

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

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

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

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

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

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

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

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

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

SB1699 Enrolled - 245 - LRB103 27684 AMQ 54061 b
1		documenting the frequency and nature of complaints and
2		any enforcement actions taken in response to those
3		complaints.
4		(vi) The Agency shall schedule regular meetings
5		with representatives of the Office of the Attorney
6		General, the Illinois Commerce Commission, consumer
7		protection groups, and other interested stakeholders
8		to share relevant information about consumer
9		protection, project compliance, and complaints
10		received.
11		(vii) To the extent that complaints received
12		implicate the jurisdiction of the Office of the
13		Attorney General, the Illinois Commerce Commission, or
14		local, State, or federal law enforcement, the Agency
15		shall also refer complaints to those entities as
16		appropriate.
17		(N) The Agency shall establish the terms, conditions,
18		and program requirements for photovoltaic community
19		renewable generation projects with a goal to expand access
20		to a broader group of energy consumers, to ensure robust
21		participation opportunities for residential and small
22		commercial customers and those who cannot install
23		renewable energy on their own properties. Subject to
24		reasonable limitations, any plan approved by the
25		Commission shall allow subscriptions to community
26		renewable generation projects to be portable and

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

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

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1		June 1, 2023, the long-term renewable resources
2		procurement plan may average the annual budgets over a
3		3-year period to account for program ramp-up. For the
4		delivery years beginning June 1, 2021, June 1, 2024, June
5		1, 2027, and June 1, 2030 and additional $10,000,000 shall
6		be provided to the Department of Commerce and Economic
7		Opportunity to implement the workforce development
8		programs and reporting as outlined in Section 16-108.12 of
9		the Public Utilities Act. In making the determinations
10		required under this subparagraph (O), the Commission shall
11		consider the experience and performance under the programs
12		and any evaluation reports. The Commission shall also
13		provide for an independent evaluation of those programs on
14		a periodic basis that are funded under this subparagraph
15		(O).
16		(P) All programs and procurements under this
17		subsection (c) shall be designed to encourage
18		participating projects to use a diverse and equitable
19		workforce and a diverse set of contractors, including
20		minority-owned businesses, disadvantaged businesses,
21		trade unions, graduates of any workforce training programs
22		administered under this Act, and small businesses.
23		The Agency shall develop a method to optimize
24		procurement of renewable energy credits from proposed
25		utility-scale projects that are located in communities
26		eligible to receive Energy Transition Community Grants

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1		pursuant to Section 10-20 of the Energy Community
2		Reinvestment Act. If this requirement conflicts with other
3		provisions of law or the Agency determines that full
4		compliance with the requirements of this subparagraph (P)
5		would be unreasonably costly or administratively
6		impractical, the Agency is to propose alternative
7		approaches to achieve development of renewable energy
8		resources in communities eligible to receive Energy
9		Transition Community Grants pursuant to Section 10-20 of
10		the Energy Community Reinvestment Act or seek an exemption
11		from this requirement from the Commission.
12		(Q) Each facility listed in subitems (i) through (ix)
13		of item (1) of this subparagraph (Q) for which a renewable
14		energy credit delivery contract is signed after the
15		effective date of this amendatory Act of the 102nd General
16		Assembly is subject to the following requirements through
17		the Agency's long-term renewable resources procurement
18		plan:
19		(1) Each facility shall be subject to the
20		prevailing wage requirements included in the
21		Prevailing Wage Act. The Agency shall require
22		verification that all construction performed on the
23		facility by the renewable energy credit delivery
24		contract holder, its contractors, or its
25		subcontractors relating to construction of the
26		facility is performed by construction employees

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

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1		(vii) all new photovoltaic distributed
2		renewable energy generation devices that (1)
3		qualify for item (i) of subparagraph (K) of this
4		paragraph (1); (2) are not projects that serve
5		single-family or multi-family residential
6		buildings; and (3) are not houses of worship where
7		the aggregate capacity including collocated
8		projects would not exceed 100 kilowatts;
9		(viii) all new photovoltaic distributed
10		renewable energy generation devices that (1)
11		qualify for item (ii) of subparagraph (K) of this
12		paragraph (1); (2) are not projects that serve
13		single-family or multi-family residential
14		buildings; and (3) are not houses of worship where
15		the aggregate capacity including collocated
16		projects would not exceed 100 kilowatts;
17		(ix) all new, modernized, or retooled
18		hydropower facilities.
19		(2) Renewable energy credits procured from new
20		utility-scale wind projects, new utility-scale solar
21		projects, and new brownfield solar projects pursuant
22		to Agency procurement events occurring after the
23		effective date of this amendatory Act of the 102nd
24		General Assembly must be from facilities built by
25		general contractors that must enter into a project
26		labor agreement, as defined by this Act, prior to

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1		construction. The project labor agreement shall be
2		filed with the Director in accordance with procedures
3		established by the Agency through its long-term
4		renewable resources procurement plan. Any information
5		submitted to the Agency in this item (2) shall be
6		considered commercially sensitive information. At a
7		minimum, the project labor agreement must provide the
8		names, addresses, and occupations of the owner of the
9		plant and the individuals representing the labor
10		organization employees participating in the project
11		labor agreement consistent with the Project Labor
12		Agreements Act. The agreement must also specify the
13		terms and conditions as defined by this Act.
14		(3) It is the intent of this Section to ensure that
15		economic development occurs across Illinois
16		communities, that emerging businesses may grow, and
17		that there is improved access to the clean energy
18		economy by persons who have greater economic burdens
19		to success. The Agency shall take into consideration
20		the unique cost of compliance of this subparagraph (Q)
21		that might be borne by equity eligible contractors,
22		shall include such costs when determining the price of
23		renewable energy credits in the Adjustable Block
24		program, and shall take such costs into consideration
25		in a nondiscriminatory manner when comparing bids for
26		competitive procurements. The Agency shall consider

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1		costs associated with compliance whether in the
2		development, financing, or construction of projects.
3		The Agency shall periodically review the assumptions
4		in these costs and may adjust prices, in compliance
5		with subparagraph (M) of this paragraph (1).
6		(R) In its long-term renewable resources procurement
7		plan, the Agency shall establish a self-direct renewable
8		portfolio standard compliance program for eligible
9		self-direct customers that purchase renewable energy
10		credits from utility-scale wind and solar projects through
11		long-term agreements for purchase of renewable energy
12		credits as described in this Section. Such long-term
13		agreements may include the purchase of energy or other
14		products on a physical or financial basis and may involve
15		an alternative retail electric supplier as defined in
16		Section 16-102 of the Public Utilities Act. This program
17		shall take effect in the delivery year commencing June 1,
18		2023.
19		(1) For the purposes of this subparagraph:
20		"Eligible self-direct customer" means any retail
21		customers of an electric utility that serves 3,000,000
22		or more retail customers in the State and whose total
23		highest 30-minute demand was more than 10,000
24		kilowatts, or any retail customers of an electric
25		utility that serves less than 3,000,000 retail
26		customers but more than 500,000 retail customers in

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1		the State and whose total highest 15-minute demand was
2		more than 10,000 kilowatts.
3		"Retail customer" has the meaning set forth in
4		Section 16-102 of the Public Utilities Act and
5		multiple retail customer accounts under the same
6		corporate parent may aggregate their account demands
7		to meet the 10,000 kilowatt threshold. The criteria
8		for determining whether this subparagraph is
9		applicable to a retail customer shall be based on the
10		12 consecutive billing periods prior to the start of
11		the year in which the application is filed.
12		(2) For renewable energy credits to count toward
13		the self-direct renewable portfolio standard
14		compliance program, they must:
15		(i) qualify as renewable energy credits as
16		defined in Section 1-10 of this Act;
17		(ii) be sourced from one or more renewable
18		energy generating facilities that comply with the
19		geographic requirements as set forth in
20		subparagraph (I) of paragraph (1) of subsection
21		(c) as interpreted through the Agency's long-term
22		renewable resources procurement plan, or, where
23		applicable, the geographic requirements that
24		governed utility-scale renewable energy credits at
25		the time the eligible self-direct customer entered
26		into the applicable renewable energy credit

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1		purchase agreement;
2		(iii) be procured through long-term contracts
3		with term lengths of at least 10 years either
4		directly with the renewable energy generating
5		facility or through a bundled power purchase
6		agreement, a virtual power purchase agreement, an
7		agreement between the renewable generating
8		facility, an alternative retail electric supplier,
9		and the customer, or such other structure as is
10		permissible under this subparagraph (R);
11		(iv) be equivalent in volume to at least 40%
12		of the eligible self-direct customer's usage,
13		determined annually by the eligible self-direct
14		customer's usage during the previous delivery
15		year, measured to the nearest megawatt-hour;
16		(v) be retired by or on behalf of the large
17		energy customer;
18		(vi) be sourced from new utility-scale wind
19		projects or new utility-scale solar projects; and
20		(vii) if the contracts for renewable energy
21		credits are entered into after the effective date
22		of this amendatory Act of the 102nd General
23		Assembly, the new utility-scale wind projects or
24		new utility-scale solar projects must comply with
25		the requirements established in subparagraphs (P)
26		and (Q) of paragraph (1) of this subsection (c)

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1		and subsection (c-10).
2		(3) The self-direct renewable portfolio standard
3		compliance program shall be designed to allow eligible
4		self-direct customers to procure new renewable energy
5		credits from new utility-scale wind projects or new
6		utility-scale photovoltaic projects. The Agency shall
7		annually determine the amount of utility-scale
8		renewable energy credits it will include each year
9		from the self-direct renewable portfolio standard
10		compliance program, subject to receiving qualifying
11		applications. In making this determination, the Agency
12		shall evaluate publicly available analyses and studies
13		of the potential market size for utility-scale
14		renewable energy long-term purchase agreements by
15		commercial and industrial energy customers and make
16		that report publicly available. If demand for
17		participation in the self-direct renewable portfolio
18		standard compliance program exceeds availability, the
19		Agency shall ensure participation is evenly split
20		between commercial and industrial users to the extent
21		there is sufficient demand from both customer classes.
22		Each renewable energy credit procured pursuant to this
23		subparagraph (R) by a self-direct customer shall
24		reduce the total volume of renewable energy credits
25		the Agency is otherwise required to procure from new
26		utility-scale projects pursuant to subparagraph (C) of

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1		paragraph (1) of this subsection (c) on behalf of
2		contracting utilities where the eligible self-direct
3		customer is located. The self-direct customer shall
4		file an annual compliance report with the Agency
5		pursuant to terms established by the Agency through
6		its long-term renewable resources procurement plan to
7		be eligible for participation in this program.
8		Customers must provide the Agency with their most
9		recent electricity billing statements or other
10		information deemed necessary by the Agency to
11		demonstrate they are an eligible self-direct customer.
12		(4) The Commission shall approve a reduction in
13		the volumetric charges collected pursuant to Section
14		16-108 of the Public Utilities Act for approved
15		eligible self-direct customers equivalent to the
16		anticipated cost of renewable energy credit deliveries
17		under contracts for new utility-scale wind and new
18		utility-scale solar entered for each delivery year
19		after the large energy customer begins retiring
20		eligible new utility scale renewable energy credits
21		for self-compliance. The self-direct credit amount
22		shall be determined annually and is equal to the
23		estimated portion of the cost authorized by
24		subparagraph (E) of paragraph (1) of this subsection
25		(c) that supported the annual procurement of
26		utility-scale renewable energy credits in the prior

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

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1		Thereafter, application may be made not less than 12
2		months before the filing date of the long-term
3		renewable resources procurement plan described in this
4		Act. At a minimum, such application shall contain the
5		following:
6		(i) the customer's certification that, at the
7		time of the customer's application, the customer
8		qualifies to be a self-direct eligible customer,
9		including documents demonstrating that
10		qualification;
11		(ii) the customer's certification that the
12		customer has entered into or will enter into by
13		the beginning of the applicable procurement year,
14		one or more bilateral contracts for new wind
15		projects or new photovoltaic projects, including
16		supporting documentation;
17		(iii) certification that the contract or
18		contracts for new renewable energy resources are
19		long-term contracts with term lengths of at least
20		10 years, including supporting documentation;
21		(iv) certification of the quantities of
22		renewable energy credits that the customer will
23		purchase each year under such contract or
24		contracts, including supporting documentation;
25		(v) proof that the contract is sufficient to
26		produce renewable energy credits to be equivalent

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1		in volume to at least 40% of the large energy
2		customer's usage from the previous delivery year,
3		measured to the nearest megawatt-hour; and
4		(vi) certification that the customer intends
5		to maintain the contract for the duration of the
6		length of the contract.
7		(6) If a customer receives the self-direct credit
8		but fails to properly procure and retire renewable
9		energy credits as required under this subparagraph
10		(R), the Commission, on petition from the Agency and
11		after notice and hearing, may direct such customer's
12		utility to recover the cost of the wrongfully received
13		self-direct credits plus interest through an adder to
14		charges assessed pursuant to Section 16-108 of the
15		Public Utilities Act. Self-direct customers who
16		knowingly fail to properly procure and retire
17		renewable energy credits and do not notify the Agency
18		are ineligible for continued participation in the
19		self-direct renewable portfolio standard compliance
20		program.
21		(2) (Blank).
22		(3) (Blank).
23		(4) The electric utility shall retire all renewable
24		energy credits used to comply with the standard.
25		(5) Beginning with the 2010 delivery year and ending
26		June 1, 2017, an electric utility subject to this

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

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

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1		renewable energy facilities installed at or adjacent to the
2		sites of electric generating facilities that burn or burned
3		coal as their primary fuel source.
4		(1) In addition to the procurement of renewable energy
5		credits pursuant to long-term renewable resources
6		procurement plans in accordance with subsection (c) of
7		this Section and Section 16-111.5 of the Public Utilities
8		Act, the Agency shall conduct procurement events in
9		accordance with this subsection (c-5) for the procurement
10		by electric utilities that served more than 300,000 retail
11		customers in this State as of January 1, 2019 of renewable
12		energy credits from new renewable energy facilities to be
13		installed at or adjacent to the sites of electric
14		generating facilities that, as of January 1, 2016, burned
15		coal as their primary fuel source and meet the other
16		criteria specified in this subsection (c-5). For purposes
17		of this subsection (c-5), "new renewable energy facility"
18		means a new utility-scale solar project as defined in this
19		Section 1-75. The renewable energy credits procured
20		pursuant to this subsection (c-5) may be included or
21		counted for purposes of compliance with the amounts of
22		renewable energy credits required to be procured pursuant
23		to subsection (c) of this Section to the extent that there
24		are otherwise shortfalls in compliance with such
25		requirements. The procurement of renewable energy credits
26		by electric utilities pursuant to this subsection (c-5)

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1		shall be funded solely by revenues collected from the Coal
2		to Solar and Energy Storage Initiative Charge provided for
3		in this subsection (c-5) and subsection (i-5) of Section
4		16-108 of the Public Utilities Act, shall not be funded by
5		revenues collected through any of the other funding
6		mechanisms provided for in subsection (c) of this Section,
7		and shall not be subject to the limitation imposed by
8		subsection (c) on charges to retail customers for costs to
9		procure renewable energy resources pursuant to subsection
10		(c), and shall not be subject to any other requirements or
11		limitations of subsection (c).
12		(2) The Agency shall conduct 2 procurement events to
13		select owners of electric generating facilities meeting
14		the eligibility criteria specified in this subsection
15		(c-5) to enter into long-term contracts to sell renewable
16		energy credits to electric utilities serving more than
17		300,000 retail customers in this State as of January 1,
18		2019. The first procurement event shall be conducted no
19		later than March 31, 2022, unless the Agency elects to
20		delay it, until no later than May 1, 2022, due to its
21		overall volume of work, and shall be to select owners of
22		electric generating facilities located in this State and
23		south of federal Interstate Highway 80 that meet the
24		eligibility criteria specified in this subsection (c-5).
25		The second procurement event shall be conducted no sooner
26		than September 30, 2022 and no later than October 31, 2022

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1		and shall be to select owners of electric generating
2		facilities located anywhere in this State that meet the
3		eligibility criteria specified in this subsection (c-5).
4		The Agency shall establish and announce a time period,
5		which shall begin no later than 30 days prior to the
6		scheduled date for the procurement event, during which
7		applicants may submit applications to be selected as
8		suppliers of renewable energy credits pursuant to this
9		subsection (c-5). The eligibility criteria for selection
10		as a supplier of renewable energy credits pursuant to this
11		subsection (c-5) shall be as follows:
12		(A) The applicant owns an electric generating
13		facility located in this State that: (i) as of January
14		1, 2016, burned coal as its primary fuel to generate
15		electricity; and (ii) has, or had prior to retirement,
16		an electric generating capacity of at least 150
17		megawatts. The electric generating facility can be
18		either: (i) retired as of the date of the procurement
19		event; or (ii) still operating as of the date of the
20		procurement event.
21		(B) The applicant is not (i) an electric
22		cooperative as defined in Section 3-119 of the Public
23		Utilities Act, or (ii) an entity described in
24		subsection (b)(1) of Section 3-105 of the Public
25		Utilities Act, or an association or consortium of or
26		an entity owned by entities described in (i) or (ii);

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1		and the coal-fueled electric generating facility was
2		at one time owned, in whole or in part, by a public
3		utility as defined in Section 3-105 of the Public
4		Utilities Act.
5		(C) If participating in the first procurement
6		event, the applicant proposes and commits to construct
7		and operate, at the site, and if necessary for
8		sufficient space on property adjacent to the existing
9		property, at which the electric generating facility
10		identified in paragraph (A) is located: (i) a new
11		renewable energy facility of at least 20 megawatts but
12		no more than 100 megawatts of electric generating
13		capacity, and (ii) an energy storage facility having a
14		storage capacity equal to at least 2 megawatts and at
15		most 10 megawatts. If participating in the second
16		procurement event, the applicant proposes and commits
17		to construct and operate, at the site, and if
18		necessary for sufficient space on property adjacent to
19		the existing property, at which the electric
20		generating facility identified in paragraph (A) is
21		located: (i) a new renewable energy facility of at
22		least 5 megawatts but no more than 20 megawatts of
23		electric generating capacity, and (ii) an energy
24		storage facility having a storage capacity equal to at
25		least 0.5 megawatts and at most one megawatt.
26		(D) The applicant agrees that the new renewable

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

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1		activities associated with the new renewable energy
2		facility and the new energy storage facility, and
3		that, on or before the commercial operation date of
4		the new renewable energy facility, the applicant shall
5		file a report with the Agency certifying that the
6		requirements of this subparagraph (F) have been met.
7		(G) The applicant commits that if selected, it
8		will negotiate a project labor agreement for the
9		construction of the new renewable energy facility and
10		associated energy storage facility that includes
11		provisions requiring the parties to the agreement to
12		work together to establish diversity threshold
13		requirements and to ensure best efforts to meet
14		diversity targets, improve diversity at the applicable
15		job site, create diverse apprenticeship opportunities,
16		and create opportunities to employ former coal-fired
17		power plant workers.
18		(H) The applicant commits to enter into a contract
19		or contracts for the applicable duration to provide
20		specified numbers of renewable energy credits each
21		year from the new renewable energy facility to
22		electric utilities that served more than 300,000
23		retail customers in this State as of January 1, 2019,
24		at a price of $30 per renewable energy credit. The
25		price per renewable energy credit shall be fixed at
26		$30 for the applicable duration and the renewable

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1		energy credits shall not be indexed renewable energy
2		credits as provided for in item (v) of subparagraph
3		(G) of paragraph (1) of subsection (c) of Section 1-75
4		of this Act. The applicable duration of each contract
5		shall be 20 years, unless the applicant is physically
6		interconnected to the PJM Interconnection, LLC
7		transmission grid and had a generating capacity of at
8		least 1,200 megawatts as of January 1, 2021, in which
9		case the applicable duration of the contract shall be
10		15 years.
11		(I) The applicant's application is certified by an
12		officer of the applicant and by an officer of the
13		applicant's ultimate parent company, if any.
14		(3) An applicant may submit applications to contract
15		to supply renewable energy credits from more than one new
16		renewable energy facility to be constructed at or adjacent
17		to one or more qualifying electric generating facilities
18		owned by the applicant. The Agency may select new
19		renewable energy facilities to be located at or adjacent
20		to the sites of more than one qualifying electric
21		generation facility owned by an applicant to contract with
22		electric utilities to supply renewable energy credits from
23		such facilities.
24		(4) The Agency shall assess fees to each applicant to
25		recover the Agency's costs incurred in receiving and
26		evaluating applications, conducting the procurement event,

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1		developing contracts for sale, delivery and purchase of
2		renewable energy credits, and monitoring the
3		administration of such contracts, as provided for in this
4		subsection (c-5), including fees paid to a procurement
5		administrator retained by the Agency for one or more of
6		these purposes.
7		(5) The Agency shall select the applicants and the new
8		renewable energy facilities to contract with electric
9		utilities to supply renewable energy credits in accordance
10		with this subsection (c-5). In the first procurement
11		event, the Agency shall select applicants and new
12		renewable energy facilities to supply renewable energy
13		credits, at a price of $30 per renewable energy credit,
14		aggregating to no less than 400,000 renewable energy
15		credits per year for the applicable duration, assuming
16		sufficient qualifying applications to supply, in the
17		aggregate, at least that amount of renewable energy
18		credits per year; and not more than 580,000 renewable
19		energy credits per year for the applicable duration. In
20		the second procurement event, the Agency shall select
21		applicants and new renewable energy facilities to supply
22		renewable energy credits, at a price of $30 per renewable
23		energy credit, aggregating to no more than 625,000
24		renewable energy credits per year less the amount of
25		renewable energy credits each year contracted for as a
26		result of the first procurement event, for the applicable

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1		durations. The number of renewable energy credits to be
2		procured as specified in this paragraph (5) shall not be
3		reduced based on renewable energy credits procured in the
4		self-direct renewable energy credit compliance program
5		established pursuant to subparagraph (R) of paragraph (1)
6		of subsection (c) of Section 1-75.
7		(6) The obligation to purchase renewable energy
8		credits from the applicants and their new renewable energy
9		facilities selected by the Agency shall be allocated to
10		the electric utilities based on their respective
11		percentages of kilowatthours delivered to delivery
12		services customers to the aggregate kilowatthour
13		deliveries by the electric utilities to delivery services
14		customers for the year ended December 31, 2021. In order
15		to achieve these allocation percentages between or among
16		the electric utilities, the Agency shall require each
17		applicant that is selected in the procurement event to
18		enter into a contract with each electric utility for the
19		sale and purchase of renewable energy credits from each
20		new renewable energy facility to be constructed and
21		operated by the applicant, with the sale and purchase
22		obligations under the contracts to aggregate to the total
23		number of renewable energy credits per year to be supplied
24		by the applicant from the new renewable energy facility.
25		(7) The Agency shall submit its proposed selection of
26		applicants, new renewable energy facilities to be

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1		constructed, and renewable energy credit amounts for each
2		procurement event to the Commission for approval. The
3		Commission shall, within 2 business days after receipt of
4		the Agency's proposed selections, approve the proposed
5		selections if it determines that the applicants and the
6		new renewable energy facilities to be constructed meet the
7		selection criteria set forth in this subsection (c-5) and
8		that the Agency seeks approval for contracts of applicable
9		durations aggregating to no more than the maximum amount
10		of renewable energy credits per year authorized by this
11		subsection (c-5) for the procurement event, at a price of
12		$30 per renewable energy credit.
13		(8) The Agency, in conjunction with its procurement
14		administrator if one is retained, the electric utilities,
15		and potential applicants for contracts to produce and
16		supply renewable energy credits pursuant to this
17		subsection (c-5), shall develop a standard form contract
18		for the sale, delivery and purchase of renewable energy
19		credits pursuant to this subsection (c-5). Each contract
20		resulting from the first procurement event shall allow for
21		a commercial operation date for the new renewable energy
22		facility of either June 1, 2023 or June 1, 2024, with such
23		dates subject to adjustment as provided in this paragraph.
24		Each contract resulting from the second procurement event
25		shall provide for a commercial operation date on June 1
26		next occurring up to 48 months after execution of the

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1		contract. Each contract shall provide that the owner shall
2		receive payments for renewable energy credits for the
3		applicable durations beginning with the commercial
4		operation date of the new renewable energy facility. The
5		form contract shall provide for adjustments to the
6		commercial operation and payment start dates as needed due
7		to any delays in completing the procurement and
8		contracting processes, in finalizing interconnection
9		agreements and installing interconnection facilities, and
10		in obtaining other necessary governmental permits and
11		approvals. The form contract shall be, to the maximum
12		extent possible, consistent with standard electric
13		industry contracts for sale, delivery, and purchase of
14		renewable energy credits while taking into account the
15		specific requirements of this subsection (c-5). The form
16		contract shall provide for over-delivery and
17		under-delivery of renewable energy credits within
18		reasonable ranges during each 12-month period and penalty,
19		default, and enforcement provisions for failure of the
20		selling party to deliver renewable energy credits as
21		specified in the contract and to comply with the
22		requirements of this subsection (c-5). The standard form
23		contract shall specify that all renewable energy credits
24		delivered to the electric utility pursuant to the contract
25		shall be retired. The Agency shall make the proposed
26		contracts available for a reasonable period for comment by

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1		potential applicants, and shall publish the final form
2		contract at least 30 days before the date of the first
3		procurement event.
4		(9) Coal to Solar and Energy Storage Initiative
5		Charge.
6		(A) By no later than July 1, 2022, each electric
7		utility that served more than 300,000 retail customers
8		in this State as of January 1, 2019 shall file a tariff
9		with the Commission for the billing and collection of
10		a Coal to Solar and Energy Storage Initiative Charge
11		in accordance with subsection (i-5) of Section 16-108
12		of the Public Utilities Act, with such tariff to be
13		effective, following review and approval or
14		modification by the Commission, beginning January 1,
15		2023. The tariff shall provide for the calculation and
16		setting of the electric utility's Coal to Solar and
17		Energy Storage Initiative Charge to collect revenues
18		estimated to be sufficient, in the aggregate, (i) to
19		enable the electric utility to pay for the renewable
20		energy credits it has contracted to purchase in the
21		delivery year beginning June 1, 2023 and each delivery
22		year thereafter from new renewable energy facilities
23		located at the sites of qualifying electric generating
24		facilities, and (ii) to fund the grant payments to be
25		made in each delivery year by the Department of
26		Commerce and Economic Opportunity, or any successor

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1		department or agency, which shall be referred to in
2		this subsection (c-5) as the Department, pursuant to
3		paragraph (10) of this subsection (c-5). The electric
4		utility's tariff shall provide for the billing and
5		collection of the Coal to Solar and Energy Storage
6		Initiative Charge on each kilowatthour of electricity
7		delivered to its delivery services customers within
8		its service territory and shall provide for an annual
9		reconciliation of revenues collected with actual
10		costs, in accordance with subsection (i-5) of Section
11		16-108 of the Public Utilities Act.
12		(B) Each electric utility shall remit on a monthly
13		basis to the State Treasurer, for deposit in the Coal
14		to Solar and Energy Storage Initiative Fund provided
15		for in this subsection (c-5), the electric utility's
16		collections of the Coal to Solar and Energy Storage
17		Initiative Charge in the amount estimated to be needed
18		by the Department for grant payments pursuant to grant
19		contracts entered into by the Department pursuant to
20		paragraph (10) of this subsection (c-5).
21		(10) Coal to Solar and Energy Storage Initiative Fund.
22		(A) The Coal to Solar and Energy Storage
23		Initiative Fund is established as a special fund in
24		the State treasury. The Coal to Solar and Energy
25		Storage Initiative Fund is authorized to receive, by
26		statutory deposit, that portion specified in item (B)

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1		of paragraph (9) of this subsection (c-5) of moneys
2		collected by electric utilities through imposition of
3		the Coal to Solar and Energy Storage Initiative Charge
4		required by this subsection (c-5). The Coal to Solar
5		and Energy Storage Initiative Fund shall be
6		administered by the Department to provide grants to
7		support the installation and operation of energy
8		storage facilities at the sites of qualifying electric
9		generating facilities meeting the criteria specified
10		in this paragraph (10).
11		(B) The Coal to Solar and Energy Storage
12		Initiative Fund shall not be subject to sweeps,
13		administrative charges, or chargebacks, including, but
14		not limited to, those authorized under Section 8h of
15		the State Finance Act, that would in any way result in
16		the transfer of those funds from the Coal to Solar and
17		Energy Storage Initiative Fund to any other fund of
18		this State or in having any such funds utilized for any
19		purpose other than the express purposes set forth in
20		this paragraph (10).
21		(C) The Department shall utilize up to
22		$280,500,000 in the Coal to Solar and Energy Storage
23		Initiative Fund for grants, assuming sufficient
24		qualifying applicants, to support installation of
25		energy storage facilities at the sites of up to 3
26		qualifying electric generating facilities located in

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1		the Midcontinent Independent System Operator, Inc.,
2		region in Illinois and the sites of up to 2 qualifying
3		electric generating facilities located in the PJM
4		Interconnection, LLC region in Illinois that meet the
5		criteria set forth in this subparagraph (C). The
6		criteria for receipt of a grant pursuant to this
7		subparagraph (C) are as follows:
8		(1) the electric generating facility at the
9		site has, or had prior to retirement, an electric
10		generating capacity of at least 150 megawatts;
11		(2) the electric generating facility burns (or
12		burned prior to retirement) coal as its primary
13		source of fuel;
14		(3) if the electric generating facility is
15		retired, it was retired subsequent to January 1,
16		2016;
17		(4) the owner of the electric generating
18		facility has not been selected by the Agency
19		pursuant to this subsection (c-5) of this Section
20		to enter into a contract to sell renewable energy
21		credits to one or more electric utilities from a
22		new renewable energy facility located or to be
23		located at or adjacent to the site at which the
24		electric generating facility is located;
25		(5) the electric generating facility located
26		at the site was at one time owned, in whole or in

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1		part, by a public utility as defined in Section
2		3-105 of the Public Utilities Act;
3		(6) the electric generating facility at the
4		site is not owned by (i) an electric cooperative
5		as defined in Section 3-119 of the Public
6		Utilities Act, or (ii) an entity described in
7		subsection (b)(1) of Section 3-105 of the Public
8		Utilities Act, or an association or consortium of
9		or an entity owned by entities described in items
10		(i) or (ii);
11		(7) the proposed energy storage facility at
12		the site will have energy storage capacity of at
13		least 37 megawatts;
14		(8) the owner commits to place the energy
15		storage facility into commercial operation on
16		either June 1, 2023, June 1, 2024, or June 1, 2025,
17		with such date subject to adjustment as needed due
18		to any delays in completing the grant contracting
19		process, in finalizing interconnection agreements
20		and in installing interconnection facilities, and
21		in obtaining necessary governmental permits and
22		approvals;
23		(9) the owner agrees that the new energy
24		storage facility will be constructed or installed
25		by a qualified entity or entities consistent with
26		the requirements of subsection (g) of Section

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

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1		report with the Department certifying that the
2		requirements of this subparagraph (11) have been
3		met; and
4		(12) the owner commits that if selected to
5		receive a grant, it will negotiate a project labor
6		agreement for the construction of the new energy
7		storage facility that includes provisions
8		requiring the parties to the agreement to work
9		together to establish diversity threshold
10		requirements and to ensure best efforts to meet
11		diversity targets, improve diversity at the
12		applicable job site, create diverse apprenticeship
13		opportunities, and create opportunities to employ
14		former coal-fired power plant workers.
15		The Department shall accept applications for this
16		grant program until March 31, 2022 and shall announce
17		the award of grants no later than June 1, 2022. The
18		Department shall make the grant payments to a
19		recipient in equal annual amounts for 10 years
20		following the date the energy storage facility is
21		placed into commercial operation. The annual grant
22		payments to a qualifying energy storage facility shall
23		be $110,000 per megawatt of energy storage capacity,
24		with total annual grant payments pursuant to this
25		subparagraph (C) for qualifying energy storage
26		facilities not to exceed $28,050,000 in any year.

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1		(D) Grants of funding for energy storage
2		facilities pursuant to subparagraph (C) of this
3		paragraph (10), from the Coal to Solar and Energy
4		Storage Initiative Fund, shall be memorialized in
5		grant contracts between the Department and the
6		recipient. The grant contracts shall specify the date
7		or dates in each year on which the annual grant
8		payments shall be paid.
9		(E) All disbursements from the Coal to Solar and
10		Energy Storage Initiative Fund shall be made only upon
11		warrants of the Comptroller drawn upon the Treasurer
12		as custodian of the Fund upon vouchers signed by the
13		Director of the Department or by the person or persons
14		designated by the Director of the Department for that
15		purpose. The Comptroller is authorized to draw the
16		warrants upon vouchers so signed. The Treasurer shall
17		accept all written warrants so signed and shall be
18		released from liability for all payments made on those
19		warrants.
20		(11) Diversity, equity, and inclusion plans.
21		(A) Each applicant selected in a procurement event
22		to contract to supply renewable energy credits in
23		accordance with this subsection (c-5) and each owner
24		selected by the Department to receive a grant or
25		grants to support the construction and operation of a
26		new energy storage facility or facilities in

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1		accordance with this subsection (c-5) shall, within 60
2		days following the Commission's approval of the
3		applicant to contract to supply renewable energy
4		credits or within 60 days following execution of a
5		grant contract with the Department, as applicable,
6		submit to the Commission a diversity, equity, and
7		inclusion plan setting forth the applicant's or
8		owner's numeric goals for the diversity composition of
9		its supplier entities for the new renewable energy
10		facility or new energy storage facility, as
11		applicable, which shall be referred to for purposes of
12		this paragraph (11) as the project, and the
13		applicant's or owner's action plan and schedule for
14		achieving those goals.
15		(B) For purposes of this paragraph (11), diversity
16		composition shall be based on the percentage, which
17		shall be a minimum of 25%, of eligible expenditures
18		for contract awards for materials and services (which
19		shall be defined in the plan) to business enterprises
20		owned by minority persons, women, or persons with
21		disabilities as defined in Section 2 of the Business
22		Enterprise for Minorities, Women, and Persons with
23		Disabilities Act, to LGBTQ business enterprises, to
24		veteran-owned business enterprises, and to business
25		enterprises located in environmental justice
26		communities. The diversity composition goals of the

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1		plan may include eligible expenditures in areas for
2		vendor or supplier opportunities in addition to
3		development and construction of the project, and may
4		exclude from eligible expenditures materials and
5		services with limited market availability, limited
6		production and availability from suppliers in the
7		United States, such as solar panels and storage
8		batteries, and material and services that are subject
9		to critical energy infrastructure or cybersecurity
10		requirements or restrictions. The plan may provide
11		that the diversity composition goals may be met
12		through Tier 1 Direct or Tier 2 subcontracting
13		expenditures or a combination thereof for the project.
14		(C) The plan shall provide for, but not be limited
15		to: (i) internal initiatives, including multi-tier
16		initiatives, by the applicant or owner, or by its
17		engineering, procurement and construction contractor
18		if one is used for the project, which for purposes of
19		this paragraph (11) shall be referred to as the EPC
20		contractor, to enable diverse businesses to be
21		considered fairly for selection to provide materials
22		and services; (ii) requirements for the applicant or
23		owner or its EPC contractor to proactively solicit and
24		utilize diverse businesses to provide materials and
25		services; and (iii) requirements for the applicant or
26		owner or its EPC contractor to hire a diverse

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1		workforce for the project. The plan shall include a
2		description of the applicant's or owner's diversity
3		recruiting efforts both for the project and for other
4		areas of the applicant's or owner's business
5		operations. The plan shall provide for the imposition
6		of financial penalties on the applicant's or owner's
7		EPC contractor for failure to exercise best efforts to
8		comply with and execute the EPC contractor's diversity
9		obligations under the plan. The plan may provide for
10		the applicant or owner to set aside a portion of the
11		work on the project to serve as an incubation program
12		for qualified businesses, as specified in the plan,
13		owned by minority persons, women, persons with
14		disabilities, LGBTQ persons, and veterans, and
15		businesses located in environmental justice
16		communities, seeking to enter the renewable energy
17		industry.
18		(D) The applicant or owner may submit a revised or
19		updated plan to the Commission from time to time as
20		circumstances warrant. The applicant or owner shall
21		file annual reports with the Commission detailing the
22		applicant's or owner's progress in implementing its
23		plan and achieving its goals and any modifications the
24		applicant or owner has made to its plan to better
25		achieve its diversity, equity and inclusion goals. The
26		applicant or owner shall file a final report on the

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1		fifth June 1 following the commercial operation date
2		of the new renewable energy resource or new energy
3		storage facility, but the applicant or owner shall
4		thereafter continue to be subject to applicable
5		reporting requirements of Section 5-117 of the Public
6		Utilities Act.
7		(c-10) Equity accountability system. It is the purpose of
8		this subsection (c-10) to create an equity accountability
9		system, which includes the minimum equity standards for all
10		renewable energy procurements, the equity category of the
11		Adjustable Block Program, and the equity prioritization for
12		noncompetitive procurements, that is successful in advancing
13		priority access to the clean energy economy for businesses and
14		workers from communities that have been excluded from economic
15		opportunities in the energy sector, have been subject to
16		disproportionate levels of pollution, and have
17		disproportionately experienced negative public health
18		outcomes. Further, it is the purpose of this subsection to
19		ensure that this equity accountability system is successful in
20		advancing equity across Illinois by providing access to the
21		clean energy economy for businesses and workers from
22		communities that have been historically excluded from economic
23		opportunities in the energy sector, have been subject to
24		disproportionate levels of pollution, and have
25		disproportionately experienced negative public health
26		outcomes.

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1		(1) Minimum equity standards. The Agency shall create
2		programs with the purpose of increasing access to and
3		development of equity eligible contractors, who are prime
4		contractors and subcontractors, across all of the programs
5		it manages. All applications for renewable energy credit
6		procurements shall comply with specific minimum equity
7		commitments. Starting in the delivery year immediately
8		following the next long-term renewable resources
9		procurement plan, at least 10% of the project workforce
10		for each entity participating in a procurement program
11		outlined in this subsection (c-10) must be done by equity
12		eligible persons or equity eligible contractors. The
13		Agency shall increase the minimum percentage each delivery
14		year thereafter by increments that ensure a statewide
15		average of 30% of the project workforce for each entity
16		participating in a procurement program is done by equity
17		eligible persons or equity eligible contractors by 2030.
18		The Agency shall propose a schedule of percentage
19		increases to the minimum equity standards in its draft
20		revised renewable energy resources procurement plan
21		submitted to the Commission for approval pursuant to
22		paragraph (5) of subsection (b) of Section 16-111.5 of the
23		Public Utilities Act. In determining these annual
24		increases, the Agency shall have the discretion to
25		establish different minimum equity standards for different
26		types of procurements and different regions of the State

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1		if the Agency finds that doing so will further the
2		purposes of this subsection (c-10). The proposed schedule
3		of annual increases shall be revisited and updated on an
4		annual basis. Revisions shall be developed with
5		stakeholder input, including from equity eligible persons,
6		equity eligible contractors, clean energy industry
7		representatives, and community-based organizations that
8		work with such persons and contractors.
9		(A) At the start of each delivery year, the Agency
10		shall require a compliance plan from each entity
11		participating in a procurement program of subsection
12		(c) of this Section that demonstrates how they will
13		achieve compliance with the minimum equity standard
14		percentage for work completed in that delivery year.
15		If an entity applies for its approved vendor or
16		designee status between delivery years, the Agency
17		shall require a compliance plan at the time of
18		application.
19		(B) Halfway through each delivery year, the Agency
20		shall require each entity participating in a
21		procurement program to confirm that it will achieve
22		compliance in that delivery year, when applicable. The
23		Agency may offer corrective action plans to entities
24		that are not on track to achieve compliance.
25		(C) At the end of each delivery year, each entity
26		participating and completing work in that delivery

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1		year in a procurement program of subsection (c) shall
2		submit a report to the Agency that demonstrates how it
3		achieved compliance with the minimum equity standards
4		percentage for that delivery year.
5		(D) The Agency shall prohibit participation in
6		procurement programs by an approved vendor or
7		designee, as applicable, or entities with which an
8		approved vendor or designee, as applicable, shares a
9		common parent company if an approved vendor or
10		designee, as applicable, failed to meet the minimum
11		equity standards for the prior delivery year. Waivers
12		approved for lack of equity eligible persons or equity
13		eligible contractors in a geographic area of a project
14		shall not count against the approved vendor or
15		designee. The Agency shall offer a corrective action
16		plan for any such entities to assist them in obtaining
17		compliance and shall allow continued access to
18		procurement programs upon an approved vendor or
19		designee demonstrating compliance.
20		(E) The Agency shall pursue efficiencies achieved
21		by combining with other approved vendor or designee
22		reporting.
23		(2) Equity accountability system within the Adjustable
24		Block program. The equity category described in item (vi)
25		of subparagraph (K) of subsection (c) is only available to
26		applicants that are equity eligible contractors.

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1		(3) Equity accountability system within competitive
2		procurements. Through its long-term renewable resources
3		procurement plan, the Agency shall develop requirements
4		for ensuring that competitive procurement processes,
5		including utility-scale solar, utility-scale wind, and
6		brownfield site photovoltaic projects, advance the equity
7		goals of this subsection (c-10). Subject to Commission
8		approval, the Agency shall develop bid application
9		requirements and a bid evaluation methodology for ensuring
10		that utilization of equity eligible contractors, whether
11		as bidders or as participants on project development, is
12		optimized, including requiring that winning or successful
13		applicants for utility-scale projects are or will partner
14		with equity eligible contractors and giving preference to
15		bids through which a higher portion of contract value
16		flows to equity eligible contractors. To the extent
17		practicable, entities participating in competitive
18		procurements shall also be required to meet all the equity
19		accountability requirements for approved vendors and their
20		designees under this subsection (c-10). In developing
21		these requirements, the Agency shall also consider whether
22		equity goals can be further advanced through additional
23		measures.
24		(4) In the first revision to the long-term renewable
25		energy resources procurement plan and each revision
26		thereafter, the Agency shall include the following:

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1		(A) The current status and number of equity
2		eligible contractors listed in the Energy Workforce
3		Equity Database designed in subsection (c-25),
4		including the number of equity eligible contractors
5		with current certifications as issued by the Agency.
6		(B) A mechanism for measuring, tracking, and
7		reporting project workforce at the approved vendor or
8		designee level, as applicable, which shall include a
9		measurement methodology and records to be made
10		available for audit by the Agency or the Program
11		Administrator.
12		(C) A program for approved vendors, designees,
13		eligible persons, and equity eligible contractors to
14		receive trainings, guidance, and other support from
15		the Agency or its designee regarding the equity
16		category outlined in item (vi) of subparagraph (K) of
17		paragraph (1) of subsection (c) and in meeting the
18		minimum equity standards of this subsection (c-10).
19		(D) A process for certifying equity eligible
20		contractors and equity eligible persons. The
21		certification process shall coordinate with the Energy
22		Workforce Equity Database set forth in subsection
23		(c-25).
24		(E) An application for waiver of the minimum
25		equity standards of this subsection, which the Agency
26		shall have the discretion to grant in rare

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1		circumstances. The Agency may grant such a waiver
2		where the applicant provides evidence of significant
3		efforts toward meeting the minimum equity commitment,
4		including: use of the Energy Workforce Equity
5		Database; efforts to hire or contract with entities
6		that hire eligible persons; and efforts to establish
7		contracting relationships with eligible contractors.
8		The Agency shall support applicants in understanding
9		the Energy Workforce Equity Database and other
10		resources for pursuing compliance of the minimum
11		equity standards. Waivers shall be project-specific,
12		unless the Agency deems it necessary to grant a waiver
13		across a portfolio of projects, and in effect for no
14		longer than one year. Any waiver extension or
15		subsequent waiver request from an applicant shall be
16		subject to the requirements of this Section and shall
17		specify efforts made to reach compliance. When
18		considering whether to grant a waiver, and to what
19		extent, the Agency shall consider the degree to which
20		similarly situated applicants have been able to meet
21		these minimum equity commitments. For repeated waiver
22		requests for specific lack of eligible persons or
23		eligible contractors available, the Agency shall make
24		recommendations to target recruitment to add such
25		eligible persons or eligible contractors to the
26		database.

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1		(5) The Agency shall collect information about work on
2		projects or portfolios of projects subject to these
3		minimum equity standards to ensure compliance with this
4		subsection (c-10). Reporting in furtherance of this
5		requirement may be combined with other annual reporting
6		requirements. Such reporting shall include proof of
7		certification of each equity eligible contractor or equity
8		eligible person during the applicable time period.
9		(6) The Agency shall keep confidential all information
10		and communication that provides private or personal
11		information.
12		(7) Modifications to the equity accountability system.
13		As part of the update of the long-term renewable resources
14		procurement plan to be initiated in 2023, or sooner if the
15		Agency deems necessary, the Agency shall determine the
16		extent to which the equity accountability system described
17		in this subsection (c-10) has advanced the goals of this
18		amendatory Act of the 102nd General Assembly, including
19		through the inclusion of equity eligible persons and
20		equity eligible contractors in renewable energy credit
21		projects. If the Agency finds that the equity
22		accountability system has failed to meet those goals to
23		its fullest potential, the Agency may revise the following
24		criteria for future Agency procurements: (A) the
25		percentage of project workforce, or other appropriate
26		workforce measure, certified as equity eligible persons or

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1		equity eligible contractors; (B) definitions for equity
2		investment eligible persons and equity investment eligible
3		community; and (C) such other modifications necessary to
4		advance the goals of this amendatory Act of the 102nd
5		General Assembly effectively. Such revised criteria may
6		also establish distinct equity accountability systems for
7		different types of procurements or different regions of
8		the State if the Agency finds that doing so will further
9		the purposes of such programs. Revisions shall be
10		developed with stakeholder input, including from equity
11		eligible persons, equity eligible contractors, and
12		community-based organizations that work with such persons
13		and contractors.
14		(c-15) Racial discrimination elimination powers and
15		process.
16		(1) Purpose. It is the purpose of this subsection to
17		empower the Agency and other State actors to remedy racial
18		discrimination in Illinois' clean energy economy as
19		effectively and expediently as possible, including through
20		the use of race-conscious remedies, such as race-conscious
21		contracting and hiring goals, as consistent with State and
22		federal law.
23		(2) Racial disparity and discrimination review
24		process.
25		(A) Within one year after awarding contracts using
26		the equity actions processes established in this

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1		Section, the Agency shall publish a report evaluating
2		the effectiveness of the equity actions point criteria
3		of this Section in increasing participation of equity
4		eligible persons and equity eligible contractors. The
5		report shall disaggregate participating workers and
6		contractors by race and ethnicity. The report shall be
7		forwarded to the Governor, the General Assembly, and
8		the Illinois Commerce Commission and be made available
9		to the public.
10		(B) As soon as is practicable thereafter, the
11		Agency, in consultation with the Department of
12		Commerce and Economic Opportunity, Department of
13		Labor, and other agencies that may be relevant, shall
14		commission and publish a disparity and availability
15		study that measures the presence and impact of
16		discrimination on minority businesses and workers in
17		Illinois' clean energy economy. The Agency may hire
18		consultants and experts to conduct the disparity and
19		availability study, with the retention of those
20		consultants and experts exempt from the requirements
21		of Section 20-10 of the Illinois Procurement Code. The
22		Illinois Power Agency shall forward a copy of its
23		findings and recommendations to the Governor, the
24		General Assembly, and the Illinois Commerce
25		Commission. If the disparity and availability study
26		establishes a strong basis in evidence that there is

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1		discrimination in Illinois' clean energy economy, the
2		Agency, Department of Commerce and Economic
3		Opportunity, Department of Labor, Department of
4		Corrections, and other appropriate agencies shall take
5		appropriate remedial actions, including race-conscious
6		remedial actions as consistent with State and federal
7		law, to effectively remedy this discrimination. Such
8		remedies may include modification of the equity
9		accountability system as described in subsection
10		(c-10).
11		(c-20) Program data collection.
12		(1) Purpose. Data collection, data analysis, and
13		reporting are critical to ensure that the benefits of the
14		clean energy economy provided to Illinois residents and
15		businesses are equitably distributed across the State. The
16		Agency shall collect data from program applicants in order
17		to track and improve equitable distribution of benefits
18		across Illinois communities for all procurements the
19		Agency conducts. The Agency shall use this data to, among
20		other things, measure any potential impact of racial
21		discrimination on the distribution of benefits and provide
22		information necessary to correct any discrimination
23		through methods consistent with State and federal law.
24		(2) Agency collection of program data. The Agency
25		shall collect demographic and geographic data for each
26		entity awarded contracts under any Agency-administered

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1		program.
2		(3) Required information to be collected. The Agency
3		shall collect the following information from applicants
4		and program participants where applicable:
5		(A) demographic information, including racial or
6		ethnic identity for real persons employed, contracted,
7		or subcontracted through the program and owners of
8		businesses or entities that apply to receive renewable
9		energy credits from the Agency;
10		(B) geographic location of the residency of real
11		persons employed, contracted, or subcontracted through
12		the program and geographic location of the
13		headquarters of the business or entity that applies to
14		receive renewable energy credits from the Agency; and
15		(C) any other information the Agency determines is
16		necessary for the purpose of achieving the purpose of
17		this subsection.
18		(4) Publication of collected information. The Agency
19		shall publish, at least annually, information on the
20		demographics of program participants on an aggregate
21		basis.
22		(5) Nothing in this subsection shall be interpreted to
23		limit the authority of the Agency, or other agency or
24		department of the State, to require or collect demographic
25		information from applicants of other State programs.
26		(c-25) Energy Workforce Equity Database.

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1		(1) The Agency, in consultation with the Department of
2		Commerce and Economic Opportunity, shall create an Energy
3		Workforce Equity Database, and may contract with a third
4		party to do so ("database program administrator"). If the
5		Department decides to contract with a third party, that
6		third party shall be exempt from the requirements of
7		Section 20-10 of the Illinois Procurement Code. The Energy
8		Workforce Equity Database shall be a searchable database
9		of suppliers, vendors, and subcontractors for clean energy
10		industries that is:
11		(A) publicly accessible;
12		(B) easy for people to find and use;
13		(C) organized by company specialty or field;
14		(D) region-specific; and
15		(E) populated with information including, but not
16		limited to, contacts for suppliers, vendors, or
17		subcontractors who are minority and women-owned
18		business enterprise certified or who participate or
19		have participated in any of the programs described in
20		this Act.
21		(2) The Agency shall create an easily accessible,
22		public facing online tool using the database information
23		that includes, at a minimum, the following:
24		(A) a map of environmental justice and equity
25		investment eligible communities;
26		(B) job postings and recruiting opportunities;

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1		(C) a means by which recruiting clean energy
2		companies can find and interact with current or former
3		participants of clean energy workforce training
4		programs;
5		(D) information on workforce training service
6		providers and training opportunities available to
7		prospective workers;
8		(E) renewable energy company diversity reporting;
9		(F) a list of equity eligible contractors with
10		their contact information, types of work performed,
11		and locations worked in;
12		(G) reporting on outcomes of the programs
13		described in the workforce programs of the Energy
14		Transition Act, including information such as, but not
15		limited to, retention rate, graduation rate, and
16		placement rates of trainees; and
17		(H) information about the Jobs and Environmental
18		Justice Grant Program, the Clean Energy Jobs and
19		Justice Fund, and other sources of capital.
20		(3) The Agency shall ensure the database is regularly
21		updated to ensure information is current and shall
22		coordinate with the Department of Commerce and Economic
23		Opportunity to ensure that it includes information on
24		individuals and entities that are or have participated in
25		the Clean Jobs Workforce Network Program, Clean Energy
26		Contractor Incubator Program, Returning Residents Clean

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1		Jobs Training Program, or Clean Energy Primes Contractor
2		Accelerator Program.
3		(c-30) Enforcement of minimum equity standards. All
4		entities seeking renewable energy credits must submit an
5		annual report to demonstrate compliance with each of the
6		equity commitments required under subsection (c-10). If the
7		Agency concludes the entity has not met or maintained its
8		minimum equity standards required under the applicable
9		subparagraphs under subsection (c-10), the Agency shall deny
10		the entity's ability to participate in procurement programs in
11		subsection (c), including by withholding approved vendor or
12		designee status. The Agency may require the entity to enter
13		into a corrective action plan. An entity that is not
14		recertified for failing to meet required equity actions in
15		subparagraph (c-10) may reapply once they have a corrective
16		action plan and achieve compliance with the minimum equity
17		standards.
18		(d) Clean coal portfolio standard.
19		(1) The procurement plans shall include electricity
20		generated using clean coal. Each utility shall enter into
21		one or more sourcing agreements with the initial clean
22		coal facility, as provided in paragraph (3) of this
23		subsection (d), covering electricity generated by the
24		initial clean coal facility representing at least 5% of
25		each utility's total supply to serve the load of eligible
26		retail customers in 2015 and each year thereafter, as

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1		described in paragraph (3) of this subsection (d), subject
2		to the limits specified in paragraph (2) of this
3		subsection (d). It is the goal of the State that by January
4		1, 2025, 25% of the electricity used in the State shall be
5		generated by cost-effective clean coal facilities. For
6		purposes of this subsection (d), "cost-effective" means
7		that the expenditures pursuant to such sourcing agreements
8		do not cause the limit stated in paragraph (2) of this
9		subsection (d) to be exceeded and do not exceed cost-based
10		benchmarks, which shall be developed to assess all
11		expenditures pursuant to such sourcing agreements covering
12		electricity generated by clean coal facilities, other than
13		the initial clean coal facility, by the procurement
14		administrator, in consultation with the Commission staff,
15		Agency staff, and the procurement monitor and shall be
16		subject to Commission review and approval.
17		A utility party to a sourcing agreement shall
18		immediately retire any emission credits that it receives
19		in connection with the electricity covered by such
20		agreement.
21		Utilities shall maintain adequate records documenting
22		the purchases under the sourcing agreement to comply with
23		this subsection (d) and shall file an accounting with the
24		load forecast that must be filed with the Agency by July 15
25		of each year, in accordance with subsection (d) of Section
26		16-111.5 of the Public Utilities Act.

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1		A utility shall be deemed to have complied with the
2		clean coal portfolio standard specified in this subsection
3		(d) if the utility enters into a sourcing agreement as
4		required by this subsection (d).
5		(2) For purposes of this subsection (d), the required
6		execution of sourcing agreements with the initial clean
7		coal facility for a particular year shall be measured as a
8		percentage of the actual amount of electricity
9		(megawatt-hours) supplied by the electric utility to
10		eligible retail customers in the planning year ending
11		immediately prior to the agreement's execution. For
12		purposes of this subsection (d), the amount paid per
13		kilowatthour means the total amount paid for electric
14		service expressed on a per kilowatthour basis. For
15		purposes of this subsection (d), the total amount paid for
16		electric service includes without limitation amounts paid
17		for supply, transmission, distribution, surcharges and
18		add-on taxes.
19		Notwithstanding the requirements of this subsection
20		(d), the total amount paid under sourcing agreements with
21		clean coal facilities pursuant to the procurement plan for
22		any given year shall be reduced by an amount necessary to
23		limit the annual estimated average net increase due to the
24		costs of these resources included in the amounts paid by
25		eligible retail customers in connection with electric
26		service to:

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1		(A) in 2010, no more than 0.5% of the amount paid
2		per kilowatthour by those customers during the year
3		ending May 31, 2009;
4		(B) in 2011, the greater of an additional 0.5% of
5		the amount paid per kilowatthour by those customers
6		during the year ending May 31, 2010 or 1% of the amount
7		paid per kilowatthour by those customers during the
8		year ending May 31, 2009;
9		(C) in 2012, the greater of an additional 0.5% of
10		the amount paid per kilowatthour by those customers
11		during the year ending May 31, 2011 or 1.5% of the
12		amount paid per kilowatthour by those customers during
13		the year ending May 31, 2009;
14		(D) in 2013, the greater of an additional 0.5% of
15		the amount paid per kilowatthour by those customers
16		during the year ending May 31, 2012 or 2% of the amount
17		paid per kilowatthour by those customers during the
18		year ending May 31, 2009; and
19		(E) thereafter, the total amount paid under
20		sourcing agreements with clean coal facilities
21		pursuant to the procurement plan for any single year
22		shall be reduced by an amount necessary to limit the
23		estimated average net increase due to the cost of
24		these resources included in the amounts paid by
25		eligible retail customers in connection with electric
26		service to no more than the greater of (i) 2.015% of

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1		the amount paid per kilowatthour by those customers
2		during the year ending May 31, 2009 or (ii) the
3		incremental amount per kilowatthour paid for these
4		resources in 2013. These requirements may be altered
5		only as provided by statute.
6		No later than June 30, 2015, the Commission shall
7		review the limitation on the total amount paid under
8		sourcing agreements, if any, with clean coal facilities
9		pursuant to this subsection (d) and report to the General
10		Assembly its findings as to whether that limitation unduly
11		constrains the amount of electricity generated by
12		cost-effective clean coal facilities that is covered by
13		sourcing agreements.
14		(3) Initial clean coal facility. In order to promote
15		development of clean coal facilities in Illinois, each
16		electric utility subject to this Section shall execute a
17		sourcing agreement to source electricity from a proposed
18		clean coal facility in Illinois (the "initial clean coal
19		facility") that will have a nameplate capacity of at least
20		500 MW when commercial operation commences, that has a
21		final Clean Air Act permit on June 1, 2009 (the effective
22		date of Public Act 95-1027), and that will meet the
23		definition of clean coal facility in Section 1-10 of this
24		Act when commercial operation commences. The sourcing
25		agreements with this initial clean coal facility shall be
26		subject to both approval of the initial clean coal

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1		facility by the General Assembly and satisfaction of the
2		requirements of paragraph (4) of this subsection (d) and
3		shall be executed within 90 days after any such approval
4		by the General Assembly. The Agency and the Commission
5		shall have authority to inspect all books and records
6		associated with the initial clean coal facility during the
7		term of such a sourcing agreement. A utility's sourcing
8		agreement for electricity produced by the initial clean
9		coal facility shall include:
10		(A) a formula contractual price (the "contract
11		price") approved pursuant to paragraph (4) of this
12		subsection (d), which shall:
13		(i) be determined using a cost of service
14		methodology employing either a level or deferred
15		capital recovery component, based on a capital
16		structure consisting of 45% equity and 55% debt,
17		and a return on equity as may be approved by the
18		Federal Energy Regulatory Commission, which in any
19		case may not exceed the lower of 11.5% or the rate
20		of return approved by the General Assembly
21		pursuant to paragraph (4) of this subsection (d);
22		and
23		(ii) provide that all miscellaneous net
24		revenue, including but not limited to net revenue
25		from the sale of emission allowances, if any,
26		substitute natural gas, if any, grants or other

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1		support provided by the State of Illinois or the
2		United States Government, firm transmission
3		rights, if any, by-products produced by the
4		facility, energy or capacity derived from the
5		facility and not covered by a sourcing agreement
6		pursuant to paragraph (3) of this subsection (d)
7		or item (5) of subsection (d) of Section 16-115 of
8		the Public Utilities Act, whether generated from
9		the synthesis gas derived from coal, from SNG, or
10		from natural gas, shall be credited against the
11		revenue requirement for this initial clean coal
12		facility;
13		(B) power purchase provisions, which shall:
14		(i) provide that the utility party to such
15		sourcing agreement shall pay the contract price
16		for electricity delivered under such sourcing
17		agreement;
18		(ii) require delivery of electricity to the
19		regional transmission organization market of the
20		utility that is party to such sourcing agreement;
21		(iii) require the utility party to such
22		sourcing agreement to buy from the initial clean
23		coal facility in each hour an amount of energy
24		equal to all clean coal energy made available from
25		the initial clean coal facility during such hour
26		times a fraction, the numerator of which is such

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

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1		of which is such utility's retail market sales of
2		electricity (expressed in kilowatthours sold) in
3		the utility's service territory in the State
4		during the prior calendar month and the
5		denominator of which is the total retail market
6		sales of electricity (expressed in kilowatthours
7		sold) in the State by utilities during such prior
8		month and the sales of electricity (expressed in
9		kilowatthours sold) in the State by alternative
10		retail electric suppliers during such prior month
11		that are subject to the requirements of this
12		subsection (d) and paragraph (5) of subsection (d)
13		of Section 16-115 of the Public Utilities Act,
14		provided that the amount paid by the utility in
15		any year will be limited by paragraph (2) of this
16		subsection (d);
17		(ii) provide that the utility's payment
18		obligation in respect of the quantity of
19		electricity determined pursuant to the preceding
20		clause (i) shall be limited to an amount equal to
21		(1) the difference between the contract price
22		determined pursuant to subparagraph (A) of
23		paragraph (3) of this subsection (d) and the
24		day-ahead price for electricity delivered to the
25		regional transmission organization market of the
26		utility that is party to such sourcing agreement

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1		(or any successor delivery point at which such
2		utility's supply obligations are financially
3		settled on an hourly basis) (the "reference
4		price") on the day preceding the day on which the
5		electricity is delivered to the initial clean coal
6		facility busbar, multiplied by (2) the quantity of
7		electricity determined pursuant to the preceding
8		clause (i); and
9		(iii) not require the utility to take physical
10		delivery of the electricity produced by the
11		facility;
12		(D) general provisions, which shall:
13		(i) specify a term of no more than 30 years,
14		commencing on the commercial operation date of the
15		facility;
16		(ii) provide that utilities shall maintain
17		adequate records documenting purchases under the
18		sourcing agreements entered into to comply with
19		this subsection (d) and shall file an accounting
20		with the load forecast that must be filed with the
21		Agency by July 15 of each year, in accordance with
22		subsection (d) of Section 16-111.5 of the Public
23		Utilities Act;
24		(iii) provide that all costs associated with
25		the initial clean coal facility will be
26		periodically reported to the Federal Energy

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1		Regulatory Commission and to purchasers in
2		accordance with applicable laws governing
3		cost-based wholesale power contracts;
4		(iv) permit the Illinois Power Agency to
5		assume ownership of the initial clean coal
6		facility, without monetary consideration and
7		otherwise on reasonable terms acceptable to the
8		Agency, if the Agency so requests no less than 3
9		years prior to the end of the stated contract
10		term;
11		(v) require the owner of the initial clean
12		coal facility to provide documentation to the
13		Commission each year, starting in the facility's
14		first year of commercial operation, accurately
15		reporting the quantity of carbon emissions from
16		the facility that have been captured and
17		sequestered and report any quantities of carbon
18		released from the site or sites at which carbon
19		emissions were sequestered in prior years, based
20		on continuous monitoring of such sites. If, in any
21		year after the first year of commercial operation,
22		the owner of the facility fails to demonstrate
23		that the initial clean coal facility captured and
24		sequestered at least 50% of the total carbon
25		emissions that the facility would otherwise emit
26		or that sequestration of emissions from prior

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1		years has failed, resulting in the release of
2		carbon dioxide into the atmosphere, the owner of
3		the facility must offset excess emissions. Any
4		such carbon offsets must be permanent, additional,
5		verifiable, real, located within the State of
6		Illinois, and legally and practicably enforceable.
7		The cost of such offsets for the facility that are
8		not recoverable shall not exceed $15 million in
9		any given year. No costs of any such purchases of
10		carbon offsets may be recovered from a utility or
11		its customers. All carbon offsets purchased for
12		this purpose and any carbon emission credits
13		associated with sequestration of carbon from the
14		facility must be permanently retired. The initial
15		clean coal facility shall not forfeit its
16		designation as a clean coal facility if the
17		facility fails to fully comply with the applicable
18		carbon sequestration requirements in any given
19		year, provided the requisite offsets are
20		purchased. However, the Attorney General, on
21		behalf of the People of the State of Illinois, may
22		specifically enforce the facility's sequestration
23		requirement and the other terms of this contract
24		provision. Compliance with the sequestration
25		requirements and offset purchase requirements
26		specified in paragraph (3) of this subsection (d)

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1		shall be reviewed annually by an independent
2		expert retained by the owner of the initial clean
3		coal facility, with the advance written approval
4		of the Attorney General. The Commission may, in
5		the course of the review specified in item (vii),
6		reduce the allowable return on equity for the
7		facility if the facility willfully fails to comply
8		with the carbon capture and sequestration
9		requirements set forth in this item (v);
10		(vi) include limits on, and accordingly
11		provide for modification of, the amount the
12		utility is required to source under the sourcing
13		agreement consistent with paragraph (2) of this
14		subsection (d);
15		(vii) require Commission review: (1) to
16		determine the justness, reasonableness, and
17		prudence of the inputs to the formula referenced
18		in subparagraphs (A)(i) through (A)(iii) of
19		paragraph (3) of this subsection (d), prior to an
20		adjustment in those inputs including, without
21		limitation, the capital structure and return on
22		equity, fuel costs, and other operations and
23		maintenance costs and (2) to approve the costs to
24		be passed through to customers under the sourcing
25		agreement by which the utility satisfies its
26		statutory obligations. Commission review shall

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1		occur no less than every 3 years, regardless of
2		whether any adjustments have been proposed, and
3		shall be completed within 9 months;
4		(viii) limit the utility's obligation to such
5		amount as the utility is allowed to recover
6		through tariffs filed with the Commission,
7		provided that neither the clean coal facility nor
8		the utility waives any right to assert federal
9		pre-emption or any other argument in response to a
10		purported disallowance of recovery costs;
11		(ix) limit the utility's or alternative retail
12		electric supplier's obligation to incur any
13		liability until such time as the facility is in
14		commercial operation and generating power and
15		energy and such power and energy is being
16		delivered to the facility busbar;
17		(x) provide that the owner or owners of the
18		initial clean coal facility, which is the
19		counterparty to such sourcing agreement, shall
20		have the right from time to time to elect whether
21		the obligations of the utility party thereto shall
22		be governed by the power purchase provisions or
23		the contract for differences provisions;
24		(xi) append documentation showing that the
25		formula rate and contract, insofar as they relate
26		to the power purchase provisions, have been

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1		approved by the Federal Energy Regulatory
2		Commission pursuant to Section 205 of the Federal
3		Power Act;
4		(xii) provide that any changes to the terms of
5		the contract, insofar as such changes relate to
6		the power purchase provisions, are subject to
7		review under the public interest standard applied
8		by the Federal Energy Regulatory Commission
9		pursuant to Sections 205 and 206 of the Federal
10		Power Act; and
11		(xiii) conform with customary lender
12		requirements in power purchase agreements used as
13		the basis for financing non-utility generators.
14		(4) Effective date of sourcing agreements with the
15		initial clean coal facility. Any proposed sourcing
16		agreement with the initial clean coal facility shall not
17		become effective unless the following reports are prepared
18		and submitted and authorizations and approvals obtained:
19		(i) Facility cost report. The owner of the initial
20		clean coal facility shall submit to the Commission,
21		the Agency, and the General Assembly a front-end
22		engineering and design study, a facility cost report,
23		method of financing (including but not limited to
24		structure and associated costs), and an operating and
25		maintenance cost quote for the facility (collectively
26		"facility cost report"), which shall be prepared in

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1		accordance with the requirements of this paragraph (4)
2		of subsection (d) of this Section, and shall provide
3		the Commission and the Agency access to the work
4		papers, relied upon documents, and any other backup
5		documentation related to the facility cost report.
6		(ii) Commission report. Within 6 months following
7		receipt of the facility cost report, the Commission,
8		in consultation with the Agency, shall submit a report
9		to the General Assembly setting forth its analysis of
10		the facility cost report. Such report shall include,
11		but not be limited to, a comparison of the costs
12		associated with electricity generated by the initial
13		clean coal facility to the costs associated with
14		electricity generated by other types of generation
15		facilities, an analysis of the rate impacts on
16		residential and small business customers over the life
17		of the sourcing agreements, and an analysis of the
18		likelihood that the initial clean coal facility will
19		commence commercial operation by and be delivering
20		power to the facility's busbar by 2016. To assist in
21		the preparation of its report, the Commission, in
22		consultation with the Agency, may hire one or more
23		experts or consultants, the costs of which shall be
24		paid for by the owner of the initial clean coal
25		facility. The Commission and Agency may begin the
26		process of selecting such experts or consultants prior

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1		to receipt of the facility cost report.
2		(iii) General Assembly approval. The proposed
3		sourcing agreements shall not take effect unless,
4		based on the facility cost report and the Commission's
5		report, the General Assembly enacts authorizing
6		legislation approving (A) the projected price, stated
7		in cents per kilowatthour, to be charged for
8		electricity generated by the initial clean coal
9		facility, (B) the projected impact on residential and
10		small business customers' bills over the life of the
11		sourcing agreements, and (C) the maximum allowable
12		return on equity for the project; and
13		(iv) Commission review. If the General Assembly
14		enacts authorizing legislation pursuant to
15		subparagraph (iii) approving a sourcing agreement, the
16		Commission shall, within 90 days of such enactment,
17		complete a review of such sourcing agreement. During
18		such time period, the Commission shall implement any
19		directive of the General Assembly, resolve any
20		disputes between the parties to the sourcing agreement
21		concerning the terms of such agreement, approve the
22		form of such agreement, and issue an order finding
23		that the sourcing agreement is prudent and reasonable.
24		The facility cost report shall be prepared as follows:
25		(A) The facility cost report shall be prepared by
26		duly licensed engineering and construction firms

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1		detailing the estimated capital costs payable to one
2		or more contractors or suppliers for the engineering,
3		procurement and construction of the components
4		comprising the initial clean coal facility and the
5		estimated costs of operation and maintenance of the
6		facility. The facility cost report shall include:
7		(i) an estimate of the capital cost of the
8		core plant based on one or more front end
9		engineering and design studies for the
10		gasification island and related facilities. The
11		core plant shall include all civil, structural,
12		mechanical, electrical, control, and safety
13		systems.
14		(ii) an estimate of the capital cost of the
15		balance of the plant, including any capital costs
16		associated with sequestration of carbon dioxide
17		emissions and all interconnects and interfaces
18		required to operate the facility, such as
19		transmission of electricity, construction or
20		backfeed power supply, pipelines to transport
21		substitute natural gas or carbon dioxide, potable
22		water supply, natural gas supply, water supply,
23		water discharge, landfill, access roads, and coal
24		delivery.
25		The quoted construction costs shall be expressed
26		in nominal dollars as of the date that the quote is

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1		prepared and shall include capitalized financing costs
2		during construction, taxes, insurance, and other
3		owner's costs, and an assumed escalation in materials
4		and labor beyond the date as of which the construction
5		cost quote is expressed.
6		(B) The front end engineering and design study for
7		the gasification island and the cost study for the
8		balance of plant shall include sufficient design work
9		to permit quantification of major categories of
10		materials, commodities and labor hours, and receipt of
11		quotes from vendors of major equipment required to
12		construct and operate the clean coal facility.
13		(C) The facility cost report shall also include an
14		operating and maintenance cost quote that will provide
15		the estimated cost of delivered fuel, personnel,
16		maintenance contracts, chemicals, catalysts,
17		consumables, spares, and other fixed and variable
18		operations and maintenance costs. The delivered fuel
19		cost estimate will be provided by a recognized third
20		party expert or experts in the fuel and transportation
21		industries. The balance of the operating and
22		maintenance cost quote, excluding delivered fuel
23		costs, will be developed based on the inputs provided
24		by duly licensed engineering and construction firms
25		performing the construction cost quote, potential
26		vendors under long-term service agreements and plant

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1		operating agreements, or recognized third party plant
2		operator or operators.
3		The operating and maintenance cost quote
4		(including the cost of the front end engineering and
5		design study) shall be expressed in nominal dollars as
6		of the date that the quote is prepared and shall
7		include taxes, insurance, and other owner's costs, and
8		an assumed escalation in materials and labor beyond
9		the date as of which the operating and maintenance
10		cost quote is expressed.
11		(D) The facility cost report shall also include an
12		analysis of the initial clean coal facility's ability
13		to deliver power and energy into the applicable
14		regional transmission organization markets and an
15		analysis of the expected capacity factor for the
16		initial clean coal facility.
17		(E) Amounts paid to third parties unrelated to the
18		owner or owners of the initial clean coal facility to
19		prepare the core plant construction cost quote,
20		including the front end engineering and design study,
21		and the operating and maintenance cost quote will be
22		reimbursed through Coal Development Bonds.
23		(5) Re-powering and retrofitting coal-fired power
24		plants previously owned by Illinois utilities to qualify
25		as clean coal facilities. During the 2009 procurement
26		planning process and thereafter, the Agency and the

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1		Commission shall consider sourcing agreements covering
2		electricity generated by power plants that were previously
3		owned by Illinois utilities and that have been or will be
4		converted into clean coal facilities, as defined by
5		Section 1-10 of this Act. Pursuant to such procurement
6		planning process, the owners of such facilities may
7		propose to the Agency sourcing agreements with utilities
8		and alternative retail electric suppliers required to
9		comply with subsection (d) of this Section and item (5) of
10		subsection (d) of Section 16-115 of the Public Utilities
11		Act, covering electricity generated by such facilities. In
12		the case of sourcing agreements that are power purchase
13		agreements, the contract price for electricity sales shall
14		be established on a cost of service basis. In the case of
15		sourcing agreements that are contracts for differences,
16		the contract price from which the reference price is
17		subtracted shall be established on a cost of service
18		basis. The Agency and the Commission may approve any such
19		utility sourcing agreements that do not exceed cost-based
20		benchmarks developed by the procurement administrator, in
21		consultation with the Commission staff, Agency staff and
22		the procurement monitor, subject to Commission review and
23		approval. The Commission shall have authority to inspect
24		all books and records associated with these clean coal
25		facilities during the term of any such contract.
26		(6) Costs incurred under this subsection (d) or

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1		pursuant to a contract entered into under this subsection
2		(d) shall be deemed prudently incurred and reasonable in
3		amount and the electric utility shall be entitled to full
4		cost recovery pursuant to the tariffs filed with the
5		Commission.
6		(d-5) Zero emission standard.
7		(1) Beginning with the delivery year commencing on
8		June 1, 2017, the Agency shall, for electric utilities
9		that serve at least 100,000 retail customers in this
10		State, procure contracts with zero emission facilities
11		that are reasonably capable of generating cost-effective
12		zero emission credits in an amount approximately equal to
13		16% of the actual amount of electricity delivered by each
14		electric utility to retail customers in the State during
15		calendar year 2014. For an electric utility serving fewer
16		than 100,000 retail customers in this State that
17		requested, under Section 16-111.5 of the Public Utilities
18		Act, that the Agency procure power and energy for all or a
19		portion of the utility's Illinois load for the delivery
20		year commencing June 1, 2016, the Agency shall procure
21		contracts with zero emission facilities that are
22		reasonably capable of generating cost-effective zero
23		emission credits in an amount approximately equal to 16%
24		of the portion of power and energy to be procured by the
25		Agency for the utility. The duration of the contracts
26		procured under this subsection (d-5) shall be for a term

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1		of 10 years ending May 31, 2027. The quantity of zero
2		emission credits to be procured under the contracts shall
3		be all of the zero emission credits generated by the zero
4		emission facility in each delivery year; however, if the
5		zero emission facility is owned by more than one entity,
6		then the quantity of zero emission credits to be procured
7		under the contracts shall be the amount of zero emission
8		credits that are generated from the portion of the zero
9		emission facility that is owned by the winning supplier.
10		The 16% value identified in this paragraph (1) is the
11		average of the percentage targets in subparagraph (B) of
12		paragraph (1) of subsection (c) of this Section for the 5
13		delivery years beginning June 1, 2017.
14		The procurement process shall be subject to the
15		following provisions:
16		(A) Those zero emission facilities that intend to
17		participate in the procurement shall submit to the
18		Agency the following eligibility information for each
19		zero emission facility on or before the date
20		established by the Agency:
21		(i) the in-service date and remaining useful
22		life of the zero emission facility;
23		(ii) the amount of power generated annually
24		for each of the years 2005 through 2015, and the
25		projected zero emission credits to be generated
26		over the remaining useful life of the zero

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1		emission facility, which shall be used to
2		determine the capability of each facility;
3		(iii) the annual zero emission facility cost
4		projections, expressed on a per megawatthour
5		basis, over the next 6 delivery years, which shall
6		include the following: operation and maintenance
7		expenses; fully allocated overhead costs, which
8		shall be allocated using the methodology developed
9		by the Institute for Nuclear Power Operations;
10		fuel expenditures; non-fuel capital expenditures;
11		spent fuel expenditures; a return on working
12		capital; the cost of operational and market risks
13		that could be avoided by ceasing operation; and
14		any other costs necessary for continued
15		operations, provided that "necessary" means, for
16		purposes of this item (iii), that the costs could
17		reasonably be avoided only by ceasing operations
18		of the zero emission facility; and
19		(iv) a commitment to continue operating, for
20		the duration of the contract or contracts executed
21		under the procurement held under this subsection
22		(d-5), the zero emission facility that produces
23		the zero emission credits to be procured in the
24		procurement.
25		The information described in item (iii) of this
26		subparagraph (A) may be submitted on a confidential

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1		basis and shall be treated and maintained by the
2		Agency, the procurement administrator, and the
3		Commission as confidential and proprietary and exempt
4		from disclosure under subparagraphs (a) and (g) of
5		paragraph (1) of Section 7 of the Freedom of
6		Information Act. The Office of Attorney General shall
7		have access to, and maintain the confidentiality of,
8		such information pursuant to Section 6.5 of the
9		Attorney General Act.
10		(B) The price for each zero emission credit
11		procured under this subsection (d-5) for each delivery
12		year shall be in an amount that equals the Social Cost
13		of Carbon, expressed on a price per megawatthour
14		basis. However, to ensure that the procurement remains
15		affordable to retail customers in this State if
16		electricity prices increase, the price in an
17		applicable delivery year shall be reduced below the
18		Social Cost of Carbon by the amount ("Price
19		Adjustment") by which the market price index for the
20		applicable delivery year exceeds the baseline market
21		price index for the consecutive 12-month period ending
22		May 31, 2016. If the Price Adjustment is greater than
23		or equal to the Social Cost of Carbon in an applicable
24		delivery year, then no payments shall be due in that
25		delivery year. The components of this calculation are
26		defined as follows:

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1		(i) Social Cost of Carbon: The Social Cost of
2		Carbon is $16.50 per megawatthour, which is based
3		on the U.S. Interagency Working Group on Social
4		Cost of Carbon's price in the August 2016
5		Technical Update using a 3% discount rate,
6		adjusted for inflation for each year of the
7		program. Beginning with the delivery year
8		commencing June 1, 2023, the price per
9		megawatthour shall increase by $1 per
10		megawatthour, and continue to increase by an
11		additional $1 per megawatthour each delivery year
12		thereafter.
13		(ii) Baseline market price index: The baseline
14		market price index for the consecutive 12-month
15		period ending May 31, 2016 is $31.40 per
16		megawatthour, which is based on the sum of (aa)
17		the average day-ahead energy price across all
18		hours of such 12-month period at the PJM
19		Interconnection LLC Northern Illinois Hub, (bb)
20		50% multiplied by the Base Residual Auction, or
21		its successor, capacity price for the rest of the
22		RTO zone group determined by PJM Interconnection
23		LLC, divided by 24 hours per day, and (cc) 50%
24		multiplied by the Planning Resource Auction, or
25		its successor, capacity price for Zone 4
26		determined by the Midcontinent Independent System

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1		Operator, Inc., divided by 24 hours per day.
2		(iii) Market price index: The market price
3		index for a delivery year shall be the sum of
4		projected energy prices and projected capacity
5		prices determined as follows:
6		(aa) Projected energy prices: the
7		projected energy prices for the applicable
8		delivery year shall be calculated once for the
9		year using the forward market price for the
10		PJM Interconnection, LLC Northern Illinois
11		Hub. The forward market price shall be
12		calculated as follows: the energy forward
13		prices for each month of the applicable
14		delivery year averaged for each trade date
15		during the calendar year immediately preceding
16		that delivery year to produce a single energy
17		forward price for the delivery year. The
18		forward market price calculation shall use
19		data published by the Intercontinental
20		Exchange, or its successor.
21		(bb) Projected capacity prices:
22		(I) For the delivery years commencing
23		June 1, 2017, June 1, 2018, and June 1,
24		2019, the projected capacity price shall
25		be equal to the sum of (1) 50% multiplied
26		by the Base Residual Auction, or its

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1		successor, price for the rest of the RTO
2		zone group as determined by PJM
3		Interconnection LLC, divided by 24 hours
4		per day and, (2) 50% multiplied by the
5		resource auction price determined in the
6		resource auction administered by the
7		Midcontinent Independent System Operator,
8		Inc., in which the largest percentage of
9		load cleared for Local Resource Zone 4,
10		divided by 24 hours per day, and where
11		such price is determined by the
12		Midcontinent Independent System Operator,
13		Inc.
14		(II) For the delivery year commencing
15		June 1, 2020, and each year thereafter,
16		the projected capacity price shall be
17		equal to the sum of (1) 50% multiplied by
18		the Base Residual Auction, or its
19		successor, price for the ComEd zone as
20		determined by PJM Interconnection LLC,
21		divided by 24 hours per day, and (2) 50%
22		multiplied by the resource auction price
23		determined in the resource auction
24		administered by the Midcontinent
25		Independent System Operator, Inc., in
26		which the largest percentage of load

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1		cleared for Local Resource Zone 4, divided
2		by 24 hours per day, and where such price
3		is determined by the Midcontinent
4		Independent System Operator, Inc.
5		For purposes of this subsection (d-5):
6		"Rest of the RTO" and "ComEd Zone" shall have
7		the meaning ascribed to them by PJM
8		Interconnection, LLC.
9		"RTO" means regional transmission
10		organization.
11		(C) No later than 45 days after June 1, 2017 (the
12		effective date of Public Act 99-906), the Agency shall
13		publish its proposed zero emission standard
14		procurement plan. The plan shall be consistent with
15		the provisions of this paragraph (1) and shall provide
16		that winning bids shall be selected based on public
17		interest criteria that include, but are not limited
18		to, minimizing carbon dioxide emissions that result
19		from electricity consumed in Illinois and minimizing
20		sulfur dioxide, nitrogen oxide, and particulate matter
21		emissions that adversely affect the citizens of this
22		State. In particular, the selection of winning bids
23		shall take into account the incremental environmental
24		benefits resulting from the procurement, such as any
25		existing environmental benefits that are preserved by
26		the procurements held under Public Act 99-906 and

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1		would cease to exist if the procurements were not
2		held, including the preservation of zero emission
3		facilities. The plan shall also describe in detail how
4		each public interest factor shall be considered and
5		weighted in the bid selection process to ensure that
6		the public interest criteria are applied to the
7		procurement and given full effect.
8		For purposes of developing the plan, the Agency
9		shall consider any reports issued by a State agency,
10		board, or commission under House Resolution 1146 of
11		the 98th General Assembly and paragraph (4) of
12		subsection (d) of this Section, as well as publicly
13		available analyses and studies performed by or for
14		regional transmission organizations that serve the
15		State and their independent market monitors.
16		Upon publishing of the zero emission standard
17		procurement plan, copies of the plan shall be posted
18		and made publicly available on the Agency's website.
19		All interested parties shall have 10 days following
20		the date of posting to provide comment to the Agency on
21		the plan. All comments shall be posted to the Agency's
22		website. Following the end of the comment period, but
23		no more than 60 days later than June 1, 2017 (the
24		effective date of Public Act 99-906), the Agency shall
25		revise the plan as necessary based on the comments
26		received and file its zero emission standard

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1		procurement plan with the Commission.
2		If the Commission determines that the plan will
3		result in the procurement of cost-effective zero
4		emission credits, then the Commission shall, after
5		notice and hearing, but no later than 45 days after the
6		Agency filed the plan, approve the plan or approve
7		with modification. For purposes of this subsection
8		(d-5), "cost effective" means the projected costs of
9		procuring zero emission credits from zero emission
10		facilities do not cause the limit stated in paragraph
11		(2) of this subsection to be exceeded.
12		(C-5) As part of the Commission's review and
13		acceptance or rejection of the procurement results,
14		the Commission shall, in its public notice of
15		successful bidders:
16		(i) identify how the winning bids satisfy the
17		public interest criteria described in subparagraph
18		(C) of this paragraph (1) of minimizing carbon
19		dioxide emissions that result from electricity
20		consumed in Illinois and minimizing sulfur
21		dioxide, nitrogen oxide, and particulate matter
22		emissions that adversely affect the citizens of
23		this State;
24		(ii) specifically address how the selection of
25		winning bids takes into account the incremental
26		environmental benefits resulting from the

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1		procurement, including any existing environmental
2		benefits that are preserved by the procurements
3		held under Public Act 99-906 and would have ceased
4		to exist if the procurements had not been held,
5		such as the preservation of zero emission
6		facilities;
7		(iii) quantify the environmental benefit of
8		preserving the resources identified in item (ii)
9		of this subparagraph (C-5), including the
10		following:
11		(aa) the value of avoided greenhouse gas
12		emissions measured as the product of the zero
13		emission facilities' output over the contract
14		term multiplied by the U.S. Environmental
15		Protection Agency eGrid subregion carbon
16		dioxide emission rate and the U.S. Interagency
17		Working Group on Social Cost of Carbon's price
18		in the August 2016 Technical Update using a 3%
19		discount rate, adjusted for inflation for each
20		delivery year; and
21		(bb) the costs of replacement with other
22		zero carbon dioxide resources, including wind
23		and photovoltaic, based upon the simple
24		average of the following:
25		(I) the price, or if there is more
26		than one price, the average of the prices,

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1		paid for renewable energy credits from new
2		utility-scale wind projects in the
3		procurement events specified in item (i)
4		of subparagraph (G) of paragraph (1) of
5		subsection (c) of this Section; and
6		(II) the price, or if there is more
7		than one price, the average of the prices,
8		paid for renewable energy credits from new
9		utility-scale solar projects and
10		brownfield site photovoltaic projects in
11		the procurement events specified in item
12		(ii) of subparagraph (G) of paragraph (1)
13		of subsection (c) of this Section and,
14		after January 1, 2015, renewable energy
15		credits from photovoltaic distributed
16		generation projects in procurement events
17		held under subsection (c) of this Section.
18		Each utility shall enter into binding contractual
19		arrangements with the winning suppliers.
20		The procurement described in this subsection
21		(d-5), including, but not limited to, the execution of
22		all contracts procured, shall be completed no later
23		than May 10, 2017. Based on the effective date of
24		Public Act 99-906, the Agency and Commission may, as
25		appropriate, modify the various dates and timelines
26		under this subparagraph and subparagraphs (C) and (D)

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1		of this paragraph (1). The procurement and plan
2		approval processes required by this subsection (d-5)
3		shall be conducted in conjunction with the procurement
4		and plan approval processes required by subsection (c)
5		of this Section and Section 16-111.5 of the Public
6		Utilities Act, to the extent practicable.
7		Notwithstanding whether a procurement event is
8		conducted under Section 16-111.5 of the Public
9		Utilities Act, the Agency shall immediately initiate a
10		procurement process on June 1, 2017 (the effective
11		date of Public Act 99-906).
12		(D) Following the procurement event described in
13		this paragraph (1) and consistent with subparagraph
14		(B) of this paragraph (1), the Agency shall calculate
15		the payments to be made under each contract for the
16		next delivery year based on the market price index for
17		that delivery year. The Agency shall publish the
18		payment calculations no later than May 25, 2017 and
19		every May 25 thereafter.
20		(E) Notwithstanding the requirements of this
21		subsection (d-5), the contracts executed under this
22		subsection (d-5) shall provide that the zero emission
23		facility may, as applicable, suspend or terminate
24		performance under the contracts in the following
25		instances:
26		(i) A zero emission facility shall be excused

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1		from its performance under the contract for any
2		cause beyond the control of the resource,
3		including, but not restricted to, acts of God,
4		flood, drought, earthquake, storm, fire,
5		lightning, epidemic, war, riot, civil disturbance
6		or disobedience, labor dispute, labor or material
7		shortage, sabotage, acts of public enemy,
8		explosions, orders, regulations or restrictions
9		imposed by governmental, military, or lawfully
10		established civilian authorities, which, in any of
11		the foregoing cases, by exercise of commercially
12		reasonable efforts the zero emission facility
13		could not reasonably have been expected to avoid,
14		and which, by the exercise of commercially
15		reasonable efforts, it has been unable to
16		overcome. In such event, the zero emission
17		facility shall be excused from performance for the
18		duration of the event, including, but not limited
19		to, delivery of zero emission credits, and no
20		payment shall be due to the zero emission facility
21		during the duration of the event.
22		(ii) A zero emission facility shall be
23		permitted to terminate the contract if legislation
24		is enacted into law by the General Assembly that
25		imposes or authorizes a new tax, special
26		assessment, or fee on the generation of

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1		electricity, the ownership or leasehold of a
2		generating unit, or the privilege or occupation of
3		such generation, ownership, or leasehold of
4		generation units by a zero emission facility.
5		However, the provisions of this item (ii) do not
6		apply to any generally applicable tax, special
7		assessment or fee, or requirements imposed by
8		federal law.
9		(iii) A zero emission facility shall be
10		permitted to terminate the contract in the event
11		that the resource requires capital expenditures in
12		excess of $40,000,000 that were neither known nor
13		reasonably foreseeable at the time it executed the
14		contract and that a prudent owner or operator of
15		such resource would not undertake.
16		(iv) A zero emission facility shall be
17		permitted to terminate the contract in the event
18		the Nuclear Regulatory Commission terminates the
19		resource's license.
20		(F) If the zero emission facility elects to
21		terminate a contract under subparagraph (E) of this
22		paragraph (1), then the Commission shall reopen the
23		docket in which the Commission approved the zero
24		emission standard procurement plan under subparagraph
25		(C) of this paragraph (1) and, after notice and
26		hearing, enter an order acknowledging the contract

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1		termination election if such termination is consistent
2		with the provisions of this subsection (d-5).
3		(2) For purposes of this subsection (d-5), the amount
4		paid per kilowatthour means the total amount paid for
5		electric service expressed on a per kilowatthour basis.
6		For purposes of this subsection (d-5), the total amount
7		paid for electric service includes, without limitation,
8		amounts paid for supply, transmission, distribution,
9		surcharges, and add-on taxes.
10		Notwithstanding the requirements of this subsection
11		(d-5), the contracts executed under this subsection (d-5)
12		shall provide that the total of zero emission credits
13		procured under a procurement plan shall be subject to the
14		limitations of this paragraph (2). For each delivery year,
15		the contractual volume receiving payments in such year
16		shall be reduced for all retail customers based on the
17		amount necessary to limit the net increase that delivery
18		year to the costs of those credits included in the amounts
19		paid by eligible retail customers in connection with
20		electric service to no more than 1.65% of the amount paid
21		per kilowatthour by eligible retail customers during the
22		year ending May 31, 2009. The result of this computation
23		shall apply to and reduce the procurement for all retail
24		customers, and all those customers shall pay the same
25		single, uniform cents per kilowatthour charge under
26		subsection (k) of Section 16-108 of the Public Utilities

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1		Act. To arrive at a maximum dollar amount of zero emission
2		credits to be paid for the particular delivery year, the
3		resulting per kilowatthour amount shall be applied to the
4		actual amount of kilowatthours of electricity delivered by
5		the electric utility in the delivery year immediately
6		prior to the procurement, to all retail customers in its
7		service territory. Unpaid contractual volume for any
8		delivery year shall be paid in any subsequent delivery
9		year in which such payments can be made without exceeding
10		the amount specified in this paragraph (2). The
11		calculations required by this paragraph (2) shall be made
12		only once for each procurement plan year. Once the
13		determination as to the amount of zero emission credits to
14		be paid is made based on the calculations set forth in this
15		paragraph (2), no subsequent rate impact determinations
16		shall be made and no adjustments to those contract amounts
17		shall be allowed. All costs incurred under those contracts
18		and in implementing this subsection (d-5) shall be
19		recovered by the electric utility as provided in this
20		Section.
21		No later than June 30, 2019, the Commission shall
22		review the limitation on the amount of zero emission
23		credits procured under this subsection (d-5) and report to
24		the General Assembly its findings as to whether that
25		limitation unduly constrains the procurement of
26		cost-effective zero emission credits.

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1		(3) Six years after the execution of a contract under
2		this subsection (d-5), the Agency shall determine whether
3		the actual zero emission credit payments received by the
4		supplier over the 6-year period exceed the Average ZEC
5		Payment. In addition, at the end of the term of a contract
6		executed under this subsection (d-5), or at the time, if
7		any, a zero emission facility's contract is terminated
8		under subparagraph (E) of paragraph (1) of this subsection
9		(d-5), then the Agency shall determine whether the actual
10		zero emission credit payments received by the supplier
11		over the term of the contract exceed the Average ZEC
12		Payment, after taking into account any amounts previously
13		credited back to the utility under this paragraph (3). If
14		the Agency determines that the actual zero emission credit
15		payments received by the supplier over the relevant period
16		exceed the Average ZEC Payment, then the supplier shall
17		credit the difference back to the utility. The amount of
18		the credit shall be remitted to the applicable electric
19		utility no later than 120 days after the Agency's
20		determination, which the utility shall reflect as a credit
21		on its retail customer bills as soon as practicable;
22		however, the credit remitted to the utility shall not
23		exceed the total amount of payments received by the
24		facility under its contract.
25		For purposes of this Section, the Average ZEC Payment
26		shall be calculated by multiplying the quantity of zero

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1		emission credits delivered under the contract times the
2		average contract price. The average contract price shall
3		be determined by subtracting the amount calculated under
4		subparagraph (B) of this paragraph (3) from the amount
5		calculated under subparagraph (A) of this paragraph (3),
6		as follows:
7		(A) The average of the Social Cost of Carbon, as
8		defined in subparagraph (B) of paragraph (1) of this
9		subsection (d-5), during the term of the contract.
10		(B) The average of the market price indices, as
11		defined in subparagraph (B) of paragraph (1) of this
12		subsection (d-5), during the term of the contract,
13		minus the baseline market price index, as defined in
14		subparagraph (B) of paragraph (1) of this subsection
15		(d-5).
16		If the subtraction yields a negative number, then the
17		Average ZEC Payment shall be zero.
18		(4) Cost-effective zero emission credits procured from
19		zero emission facilities shall satisfy the applicable
20		definitions set forth in Section 1-10 of this Act.
21		(5) The electric utility shall retire all zero
22		emission credits used to comply with the requirements of
23		this subsection (d-5).
24		(6) Electric utilities shall be entitled to recover
25		all of the costs associated with the procurement of zero
26		emission credits through an automatic adjustment clause

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1		tariff in accordance with subsection (k) and (m) of
2		Section 16-108 of the Public Utilities Act, and the
3		contracts executed under this subsection (d-5) shall
4		provide that the utilities' payment obligations under such
5		contracts shall be reduced if an adjustment is required
6		under subsection (m) of Section 16-108 of the Public
7		Utilities Act.
8		(7) This subsection (d-5) shall become inoperative on
9		January 1, 2028.
10		(d-10) Nuclear Plant Assistance; carbon mitigation
11		credits.
12		(1) The General Assembly finds:
13		(A) The health, welfare, and prosperity of all
14		Illinois citizens require that the State of Illinois act
15		to avoid and not increase carbon emissions from electric
16		generation sources while continuing to ensure affordable,
17		stable, and reliable electricity to all citizens.
18		(B) Absent immediate action by the State to preserve
19		existing carbon-free energy resources, those resources may
20		retire, and the electric generation needs of Illinois'
21		retail customers may be met instead by facilities that
22		emit significant amounts of carbon pollution and other
23		harmful air pollutants at a high social and economic cost
24		until Illinois is able to develop other forms of clean
25		energy.
26		(C) The General Assembly finds that nuclear power

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1		generation is necessary for the State's transition to 100%
2		clean energy, and ensuring continued operation of nuclear
3		plants advances environmental and public health interests
4		through providing carbon-free electricity while reducing
5		the air pollution profile of the Illinois energy
6		generation fleet.
7		(D) The clean energy attributes of nuclear generation
8		facilities support the State in its efforts to achieve
9		100% clean energy.
10		(E) The State currently invests in various forms of
11		clean energy, including, but not limited to, renewable
12		energy, energy efficiency, and low-emission vehicles,
13		among others.
14		(F) The Environmental Protection Agency commissioned
15		an independent audit which provided a detailed assessment
16		of the financial condition of the Illinois nuclear fleet
17		to evaluate its financial viability and whether the
18		environmental benefits of such resources were at risk. The
19		report identified the risk of losing the environmental
20		benefits of several specific nuclear units. The report
21		also identified that the LaSalle County Generating Station
22		will continue to operate through 2026 and therefore is not
23		eligible to participate in the carbon mitigation credit
24		program.
25		(G) Nuclear plants provide carbon-free energy, which
26		helps to avoid many health-related negative impacts for

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1		Illinois residents.
2		(H) The procurement of carbon mitigation credits
3		representing the environmental benefits of carbon-free
4		generation will further the State's efforts at achieving
5		100% clean energy and decarbonizing the electricity sector
6		in a safe, reliable, and affordable manner. Further, the
7		procurement of carbon emission credits will enhance the
8		health and welfare of Illinois residents through decreased
9		reliance on more highly polluting generation.
10		(I) The General Assembly therefore finds it necessary
11		to establish carbon mitigation credits to ensure decreased
12		reliance on more carbon-intensive energy resources, for
13		transitioning to a fully decarbonized electricity sector,
14		and to help ensure health and welfare of the State's
15		residents.
16		(2) As used in this subsection:
17		"Baseline costs" means costs used to establish a customer
18		protection cap that have been evaluated through an independent
19		audit of a carbon-free energy resource conducted by the
20		Environmental Protection Agency that evaluated projected
21		annual costs for operation and maintenance expenses; fully
22		allocated overhead costs, which shall be allocated using the
23		methodology developed by the Institute for Nuclear Power
24		Operations; fuel expenditures; nonfuel capital expenditures;
25		spent fuel expenditures; a return on working capital; the cost
26		of operational and market risks that could be avoided by

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1		ceasing operation; and any other costs necessary for continued
2		operations, provided that "necessary" means, for purposes of
3		this definition, that the costs could reasonably be avoided
4		only by ceasing operations of the carbon-free energy resource.
5		"Carbon mitigation credit" means a tradable credit that
6		represents the carbon emission reduction attributes of one
7		megawatt-hour of energy produced from a carbon-free energy
8		resource.
9		"Carbon-free energy resource" means a generation facility
10		that: (1) is fueled by nuclear power; and (2) is
11		interconnected to PJM Interconnection, LLC.
12		(3) Procurement.
13		(A) Beginning with the delivery year commencing on
14		June 1, 2022, the Agency shall, for electric utilities
15		serving at least 3,000,000 retail customers in the State,
16		seek to procure contracts for no more than approximately
17		54,500,000 cost-effective carbon mitigation credits from
18		carbon-free energy resources because such credits are
19		necessary to support current levels of carbon-free energy
20		generation and ensure the State meets its carbon dioxide
21		emissions reduction goals. The Agency shall not make a
22		partial award of a contract for carbon mitigation credits
23		covering a fractional amount of a carbon-free energy
24		resource's projected output.
25		(B) Each carbon-free energy resource that intends to
26		participate in a procurement shall be required to submit

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1		to the Agency the following information for the resource
2		on or before the date established by the Agency:
3		(i) the in-service date and remaining useful life
4		of the carbon-free energy resource;
5		(ii) the amount of power generated annually for
6		each of the past 10 years, which shall be used to
7		determine the capability of each facility;
8		(iii) a commitment to be reflected in any contract
9		entered into pursuant to this subsection (d-10) to
10		continue operating the carbon-free energy resource at
11		a capacity factor of at least 88% annually on average
12		for the duration of the contract or contracts executed
13		under the procurement held under this subsection
14		(d-10), except in an instance described in
15		subparagraph (E) of paragraph (1) of subsection (d-5)
16		of this Section or made impracticable as a result of
17		compliance with law or regulation;
18		(iv) financial need and the risk of loss of the
19		environmental benefits of such resource, which shall
20		include the following information:
21		(I) the carbon-free energy resource's cost
22		projections, expressed on a per megawatt-hour
23		basis, over the next 5 delivery years, which shall
24		include the following: operation and maintenance
25		expenses; fully allocated overhead costs, which
26		shall be allocated using the methodology developed

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1		by the Institute for Nuclear Power Operations;
2		fuel expenditures; nonfuel capital expenditures;
3		spent fuel expenditures; a return on working
4		capital; the cost of operational and market risks
5		that could be avoided by ceasing operation; and
6		any other costs necessary for continued
7		operations, provided that "necessary" means, for
8		purposes of this subitem (I), that the costs could
9		reasonably be avoided only by ceasing operations
10		of the carbon-free energy resource; and
11		(II) the carbon-free energy resource's revenue
12		projections, including energy, capacity, ancillary
13		services, any other direct State support, known or
14		anticipated federal attribute credits, known or
15		anticipated tax credits, and any other direct
16		federal support.
17		The information described in this subparagraph (B) may
18		be submitted on a confidential basis and shall be treated
19		and maintained by the Agency, the procurement
20		administrator, and the Commission as confidential and
21		proprietary and exempt from disclosure under subparagraphs
22		(a) and (g) of paragraph (1) of Section 7 of the Freedom of
23		Information Act. The Office of the Attorney General shall
24		have access to, and maintain the confidentiality of, such
25		information pursuant to Section 6.5 of the Attorney
26		General Act.

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1		(C) The Agency shall solicit bids for the contracts
2		described in this subsection (d-10) from carbon-free
3		energy resources that have satisfied the requirements of
4		subparagraph (B) of this paragraph (3). The contracts
5		procured pursuant to a procurement event shall reflect,
6		and be subject to, the following terms, requirements, and
7		limitations:
8		(i) Contracts are for delivery of carbon
9		mitigation credits, and are not energy or capacity
10		sales contracts requiring physical delivery. Pursuant
11		to item (iii), contract payments shall fully deduct
12		the value of any monetized federal production tax
13		credits, credits issued pursuant to a federal clean
14		energy standard, and other federal credits if
15		applicable.
16		(ii) Contracts for carbon mitigation credits shall
17		commence with the delivery year beginning on June 1,
18		2022 and shall be for a term of 5 delivery years
19		concluding on May 31, 2027.
20		(iii) The price per carbon mitigation credit to be
21		paid under a contract for a given delivery year shall
22		be equal to an accepted bid price less the sum of:
23		(I) one of the following energy price indices,
24		selected by the bidder at the time of the bid for
25		the term of the contract:
26		(aa) the weighted-average hourly day-ahead

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1		price for the applicable delivery year at the
2		busbar of all resources procured pursuant to
3		this subsection (d-10), weighted by actual
4		production from the resources; or
5		(bb) the projected energy price for the
6		PJM Interconnection, LLC Northern Illinois Hub
7		for the applicable delivery year determined
8		according to subitem (aa) of item (iii) of
9		subparagraph (B) of paragraph (1) of
10		subsection (d-5).
11		(II) the Base Residual Auction Capacity Price
12		for the ComEd zone as determined by PJM
13		Interconnection, LLC, divided by 24 hours per day,
14		for the applicable delivery year for the first 3
15		delivery years, and then any subsequent delivery
16		years unless the PJM Interconnection, LLC applies
17		the Minimum Offer Price Rule to participating
18		carbon-free energy resources because they supply
19		carbon mitigation credits pursuant to this Section
20		at which time, upon notice by the carbon-free
21		energy resource to the Commission and subject to
22		the Commission's confirmation, the value under
23		this subitem shall be zero, as further described
24		in the carbon mitigation credit procurement plan;
25		and
26		(III) any value of monetized federal tax

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1		credits, direct payments, or similar subsidy
2		provided to the carbon-free energy resource from
3		any unit of government that is not already
4		reflected in energy prices.
5		If the price-per-megawatt-hour calculation
6		performed under item (iii) of this subparagraph (C)
7		for a given delivery year results in a net positive
8		value, then the electric utility counterparty to the
9		contract shall multiply such net value by the
10		applicable contract quantity and remit the amount to
11		the supplier.
12		To protect retail customers from retail rate
13		impacts that may arise upon the initiation of carbon
14		policy changes, if the price-per-megawatt-hour
15		calculation performed under item (iii) of this
16		subparagraph (C) for a given delivery year results in
17		a net negative value, then the supplier counterparty
18		to the contract shall multiply such net value by the
19		applicable contract quantity and remit such amount to
20		the electric utility counterparty. The electric
21		utility shall reflect such amounts remitted by
22		suppliers as a credit on its retail customer bills as
23		soon as practicable.
24		(iv) To ensure that retail customers in Northern
25		Illinois do not pay more for carbon mitigation credits
26		than the value such credits provide, and

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1		notwithstanding the provisions of this subsection
2		(d-10), the Agency shall not accept bids for contracts
3		that exceed a customer protection cap equal to the
4		baseline costs of carbon-free energy resources.
5		The baseline costs for the applicable year shall
6		be the following:
7		(I) For the delivery year beginning June 1,
8		2022, the baseline costs shall be an amount equal
9		to $30.30 per megawatt-hour.
10		(II) For the delivery year beginning June 1,
11		2023, the baseline costs shall be an amount equal
12		to $32.50 per megawatt-hour.
13		(III) For the delivery year beginning June 1,
14		2024, the baseline costs shall be an amount equal
15		to $33.43 per megawatt-hour.
16		(IV) For the delivery year beginning June 1,
17		2025, the baseline costs shall be an amount equal
18		to $33.50 per megawatt-hour.
19		(V) For the delivery year beginning June 1,
20		2026, the baseline costs shall be an amount equal
21		to $34.50 per megawatt-hour.
22		An Environmental Protection Agency consultant
23		forecast, included in a report issued April 14, 2021,
24		projects that a carbon-free energy resource has the
25		opportunity to earn on average approximately $30.28
26		per megawatt-hour, for the sale of energy and capacity

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1		during the time period between 2022 and 2027.
2		Therefore, the sale of carbon mitigation credits
3		provides the opportunity to receive an additional
4		amount per megawatt-hour in addition to the projected
5		prices for energy and capacity.
6		Although actual energy and capacity prices may
7		vary from year-to-year, the General Assembly finds
8		that this customer protection cap will help ensure
9		that the cost of carbon mitigation credits will be
10		less than its value, based upon the social cost of
11		carbon identified in the Technical Support Document
12		issued in February 2021 by the U.S. Interagency
13		Working Group on Social Cost of Greenhouse Gases and
14		the PJM Interconnection, LLC carbon dioxide marginal
15		emission rate for 2020, and that a carbon-free energy
16		resource receiving payment for carbon mitigation
17		credits receives no more than necessary to keep those
18		units in operation.
19		(D) No later than 7 days after the effective date of
20		this amendatory Act of the 102nd General Assembly, the
21		Agency shall publish its proposed carbon mitigation credit
22		procurement plan. The Plan shall provide that winning bids
23		shall be selected by taking into consideration which
24		resources best match public interest criteria that
25		include, but are not limited to, minimizing carbon dioxide
26		emissions that result from electricity consumed in

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1		Illinois and minimizing sulfur dioxide, nitrogen oxide,
2		and particulate matter emissions that adversely affect the
3		citizens of this State. The selection of winning bids
4		shall also take into account the incremental environmental
5		benefits resulting from the procurement or procurements,
6		such as any existing environmental benefits that are
7		preserved by a procurement held under this subsection
8		(d-10) and would cease to exist if the procurement were
9		not held, including the preservation of carbon-free energy
10		resources. For those bidders having the same public
11		interest criteria score, the relative ranking of such
12		bidders shall be determined by price. The Plan shall
13		describe in detail how each public interest factor shall
14		be considered and weighted in the bid selection process to
15		ensure that the public interest criteria are applied to
16		the procurement. The Plan shall, to the extent practical
17		and permissible by federal law, ensure that successful
18		bidders make commercially reasonable efforts to apply for
19		federal tax credits, direct payments, or similar subsidy
20		programs that support carbon-free generation and for which
21		the successful bidder is eligible. Upon publishing of the
22		carbon mitigation credit procurement plan, copies of the
23		plan shall be posted and made publicly available on the
24		Agency's website. All interested parties shall have 7 days
25		following the date of posting to provide comment to the
26		Agency on the plan. All comments shall be posted to the

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1		Agency's website. Following the end of the comment period,
2		but no more than 19 days later than the effective date of
3		this amendatory Act of the 102nd General Assembly, the
4		Agency shall revise the plan as necessary based on the
5		comments received and file its carbon mitigation credit
6		procurement plan with the Commission.
7		(E) If the Commission determines that the plan is
8		likely to result in the procurement of cost-effective
9		carbon mitigation credits, then the Commission shall,
10		after notice and hearing and opportunity for comment, but
11		no later than 42 days after the Agency filed the plan,
12		approve the plan or approve it with modification. For
13		purposes of this subsection (d-10), "cost-effective" means
14		carbon mitigation credits that are procured from
15		carbon-free energy resources at prices that are within the
16		limits specified in this paragraph (3). As part of the
17		Commission's review and acceptance or rejection of the
18		procurement results, the Commission shall, in its public
19		notice of successful bidders:
20		(i) identify how the selected carbon-free energy
21		resources satisfy the public interest criteria
22		described in this paragraph (3) of minimizing carbon
23		dioxide emissions that result from electricity
24		consumed in Illinois and minimizing sulfur dioxide,
25		nitrogen oxide, and particulate matter emissions that
26		adversely affect the citizens of this State;

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1		(ii) specifically address how the selection of
2		carbon-free energy resources takes into account the
3		incremental environmental benefits resulting from the
4		procurement, including any existing environmental
5		benefits that are preserved by the procurements held
6		under this amendatory Act of the 102nd General
7		Assembly and would have ceased to exist if the
8		procurements had not been held, such as the
9		preservation of carbon-free energy resources;
10		(iii) quantify the environmental benefit of
11		preserving the carbon-free energy resources procured
12		pursuant to this subsection (d-10), including the
13		following:
14		(I) an assessment value of avoided greenhouse
15		gas emissions measured as the product of the
16		carbon-free energy resources' output over the
17		contract term, using generally accepted
18		methodologies for the valuation of avoided
19		emissions; and
20		(II) an assessment of costs of replacement
21		with other carbon-free energy resources and
22		renewable energy resources, including wind and
23		photovoltaic generation, based upon an assessment
24		of the prices paid for renewable energy credits
25		through programs and procurements conducted
26		pursuant to subsection (c) of Section 1-75 of this

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1		Act, and the additional storage necessary to
2		produce the same or similar capability of matching
3		customer usage patterns.
4		(F) The procurements described in this paragraph (3),
5		including, but not limited to, the execution of all
6		contracts procured, shall be completed no later than
7		December 3, 2021. The procurement and plan approval
8		processes required by this paragraph (3) shall be
9		conducted in conjunction with the procurement and plan
10		approval processes required by Section 16-111.5 of the
11		Public Utilities Act, to the extent practicable. However,
12		the Agency and Commission may, as appropriate, modify the
13		various dates and timelines under this subparagraph and
14		subparagraphs (D) and (E) of this paragraph (3) to meet
15		the December 3, 2021 contract execution deadline.
16		Following the completion of such procurements, and
17		consistent with this paragraph (3), the Agency shall
18		calculate the payments to be made under each contract in a
19		timely fashion.
20		(F-1) Costs incurred by the electric utility pursuant
21		to a contract authorized by this subsection (d-10) shall
22		be deemed prudently incurred and reasonable in amount, and
23		the electric utility shall be entitled to full cost
24		recovery pursuant to a tariff or tariffs filed with the
25		Commission.
26		(G) The counterparty electric utility shall retire all

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1		carbon mitigation credits used to comply with the
2		requirements of this subsection (d-10).
3		(H) If a carbon-free energy resource is sold to
4		another owner, the rights, obligations, and commitments
5		under this subsection (d-10) shall continue to the
6		subsequent owner.
7		(I) This subsection (d-10) shall become inoperative on
8		January 1, 2028.
9		(e) The draft procurement plans are subject to public
10		comment, as required by Section 16-111.5 of the Public
11		Utilities Act.
12		(f) The Agency shall submit the final procurement plan to
13		the Commission. The Agency shall revise a procurement plan if
14		the Commission determines that it does not meet the standards
15		set forth in Section 16-111.5 of the Public Utilities Act.
16		(g) The Agency shall assess fees to each affected utility
17		to recover the costs incurred in preparation of the annual
18		procurement plan for the utility.
19		(h) The Agency shall assess fees to each bidder to recover
20		the costs incurred in connection with a competitive
21		procurement process.
22		(i) A renewable energy credit, carbon emission credit,
23		zero emission credit, or carbon mitigation credit can only be
24		used once to comply with a single portfolio or other standard
25		as set forth in subsection (c), subsection (d), or subsection
26		(d-5) of this Section, respectively. A renewable energy

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1		credit, carbon emission credit, zero emission credit, or
2		carbon mitigation credit cannot be used to satisfy the
3		requirements of more than one standard. If more than one type
4		of credit is issued for the same megawatt hour of energy, only
5		one credit can be used to satisfy the requirements of a single
6		standard. After such use, the credit must be retired together
7		with any other credits issued for the same megawatt hour of
8		energy.
9		(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
10		(20 ILCS 3855/1-129 new)
11		Sec. 1-129. Policy study.
12		(a) The General Assembly finds that:
13		(1) in 2021, Illinois became the first state in the
14		Midwest to mandate a clean energy future when it enacted
15		the Climate and Equitable Jobs Act (Public Act 102-662);
16		(2) through the Climate and Equitable Jobs Act,
17		Illinois established a plan to completely decarbonize its
18		energy sector by 2050 in an equitable manner that invests
19		in the State's workforce;
20		(3) technology in the energy sector continues to
21		advance creating cleaner and more efficient options to
22		help the State attain the target of 50% renewable energy
23		by 2040; and
24		(4) while numerous legislative proposals purport to
25		help the State on its path to equitably attain 100% clean

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1		energy, it is important to have a neutral party with
2		relevant expertise evaluate each proposal to ensure it is
3		consistent with the State's goals and maximizes benefits
4		to Illinois residents.
5		(b) The General Assembly intends:
6		(1) to prioritize the public interest over the profit
7		motives of utilities and private developers; and
8		(2) to invest in projects that reduce harmful
9		emissions and contribute to the clean economy.
10		(c) The Agency shall commission and publish a policy study
11		to evaluate the potential impacts of the proposals described
12		in subsection (g). The potential impacts may include, but are
13		not limited to, support for Illinois' decarbonization goals,
14		the environment, grid reliability, carbon and other pollutant
15		emissions, resource adequacy, long-term and short-term
16		electric rates, environmental justice communities, jobs, and
17		the economy. Where applicable, the study shall address the
18		impact of a proposal with respect to reports by the
19		Midcontinent Independent System Operator, PJM, and North
20		American Electric Reliability Corporation staff that Illinois
21		has begun to experience resource adequacy issues.
22		(d) The Agency shall retain the services of technical and
23		policy experts with energy market and other relevant fields of
24		expertise. The technical and policy experts may include the
25		existing planning and procurement consultant and applicable
26		subcontractors and the procurement administrator and

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1		applicable subcontractors. The Illinois Commerce Commission,
2		the Illinois Environmental Protection Agency, and the
3		Department of Commerce and Economic Opportunity shall provide
4		support to and consult with the Agency. The Agency may consult
5		with other State agencies, commissions, or task forces as
6		needed. The Agency may consult with and seek assistance from
7		the Regional Transmission Organizations PJM and MISO.
8		(e) The Agency may solicit information, including
9		confidential or proprietary information, from entities likely
10		to be impacted by the proposals described in subsection (g)
11		for purposes of this study. Any information designated as
12		confidential or proprietary information by the entity
13		providing the information shall be kept confidential by the
14		Agency, its consultants, and its contractors and is not
15		subject to disclosure under the Freedom of Information Act.
16		(f) The Agency shall publish a final policy study no later
17		than March 1, 2024 and suitable copies shall be delivered to
18		the Governor and members of the General Assembly. Prior to
19		publishing the final policy study, the Agency shall publish a
20		preliminary draft of the policy study and provide for a 20-day
21		open public comment period. The Agency shall review public
22		comments and publish a final policy study no later than 20 days
23		after the public comment period ends. The policy study shall
24		include policy recommendations to the General Assembly.
25		(g) The policy study shall evaluate the following
26		proposals and may consider or suggest additional or

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1		alternative items:
2		(1) House Bill 2132 of the 103rd General Assembly as
3		it passed out of the House on March 24, 2023 or a similar
4		pilot program to establish one new utility-scale offshore
5		wind project capable of producing at least 700,000
6		megawatt hours annually for at least 20 years in Lake
7		Michigan that includes an equity and inclusion plan to
8		create job opportunities for underrepresented populations
9		in addition to equity investment eligible communities and
10		a fully executed project labor agreement. The pilot
11		program may result in an increase in the amounts paid by
12		eligible retail customers in connection with electric
13		service that shall not exceed 0.25% of the amount paid per
14		kilowatt hour by those customers during the year ending
15		May 31, 2009.
16		(2) Senate Bill 1587 and amendments to Senate Bill
17		1587 of the 103rd General Assembly filed prior to May 31,
18		2023 or a similar proposal for the deployment of energy
19		storage systems supported by the State through the
20		development of energy storage credit targets for the
21		Agency to procure on behalf of Illinois electric utilities
22		from privately owned, large scale energy storage providers
23		using energy storage contracts of at least 15 year
24		durations based on a competitive energy storage
25		procurement plan developed by the Agency designed to
26		enhance overall grid reliability, flexibility and

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1		efficiency, and to lower electricity prices. The plan must
2		require participants to comply with the equity
3		accountability system requirements in subsection (c-10) of
4		Section 1-75 and to submit proof of project labor
5		agreements. For purposes of this policy study, it should
6		be assumed that the costs associated with procuring energy
7		storage credits shall be recovered through tariffed
8		charges assessed across all retail customers in a uniform
9		cents per kilowatt hour charge. In addition to large scale
10		energy storage, the proposal shall also include the
11		creation of distributed level energy storage programs
12		through utility tariffs as approved by the Illinois
13		Commerce Commission. The programs shall include a
14		residential and a commercial storage program that would
15		allow customer-sited batteries to provide grid benefits
16		and cost-savings to ratepayers. The proposal shall also
17		include a community solar energy storage program intended
18		to serve as a peak reduction program by utilizing
19		community solar paired storage projects deployed daily in
20		summer months during peak hours. The installation of the
21		energy storage systems associated with these distributed
22		renewable systems must comply with the prevailing wage
23		requirements described in subparagraph (Q) of paragraph
24		(1) of subsection (c) of Section 1-75. The policy study
25		shall include a review of the ability of coal-fueled
26		generating plant sites located in Illinois that have been

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1		closed since 2016 or are scheduled to be closed by 2030 to
2		support the installation of energy storage systems and
3		potential associated interconnection costs. This review
4		shall include: (i) whether those sites are already in a
5		regional transmission organization interconnection queue,
6		including MISO's replacement power interconnection queue,
7		or would be submitted to the replacement power
8		interconnection queue no later than September 1, 2023,
9		and, if a site is in a queue, the site's position in the
10		queue; and (ii) how soon those sites could support
11		development and installation of energy storage systems and
12		any barriers to that development. This review shall also
13		include consultation with electric generation facility
14		owners or operators and renewable developers that own or
15		are in the process of developing energy storage systems in
16		Illinois or that have experience developing energy storage
17		systems in other States.
18		(3) A policy establishing high voltage direct current
19		renewable energy credits that requires the Agency to
20		procure contracts with at least 25 years but no more than
21		40 years duration for the delivery of renewable energy
22		credits on behalf of electric utilities in Illinois with
23		at least 300,000 customers from a high voltage direct
24		current transmission facility with more than 100 miles of
25		underground transmission lines in this State capable of
26		transmitting electricity at or above 525 kilovolts and

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1		delivering power in the PJM market. High voltage direct
2		current renewable energy credits procured by the Agency
3		pursuant to this policy would not count toward the
4		renewable energy credit purchase targets in subsection (c)
5		of Section 1-75. The study shall also evaluate: (i) this
6		policy's potential for wholesale electricity price impacts
7		in both PJM and MISO, the net rate impact to Illinois
8		ratepayers, and the impact on grid reliability and
9		resilience; (ii) whether a 25-year to 40-year guaranteed
10		contract is necessary to build a high voltage direct
11		current transmission facility; (iii) whether specific high
12		voltage direct current transmission facility projects are
13		committed to Illinois' fair labor and equity standards;
14		and (iv) whether the policy creates incentives for
15		renewable development outside of Illinois rather than
16		within the State.
17		Section 15. The Illinois Procurement Code is amended by
18		changing Section 1-10 as follows:
19		(30 ILCS 500/1-10)
20		Sec. 1-10. Application.
21		(a) This Code applies only to procurements for which
22		bidders, offerors, potential contractors, or contractors were
23		first solicited on or after July 1, 1998. This Code shall not
24		be construed to affect or impair any contract, or any

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1		provision of a contract, entered into based on a solicitation
2		prior to the implementation date of this Code as described in
3		Article 99, including, but not limited to, any covenant
4		entered into with respect to any revenue bonds or similar
5		instruments. All procurements for which contracts are
6		solicited between the effective date of Articles 50 and 99 and
7		July 1, 1998 shall be substantially in accordance with this
8		Code and its intent.
9		(b) This Code shall apply regardless of the source of the
10		funds with which the contracts are paid, including federal
11		assistance moneys. This Code shall not apply to:
12		(1) Contracts between the State and its political
13		subdivisions or other governments, or between State
14		governmental bodies, except as specifically provided in
15		this Code.
16		(2) Grants, except for the filing requirements of
17		Section 20-80.
18		(3) Purchase of care, except as provided in Section
19		5-30.6 of the Illinois Public Aid Code and this Section.
20		(4) Hiring of an individual as an employee and not as
21		an independent contractor, whether pursuant to an
22		employment code or policy or by contract directly with
23		that individual.
24		(5) Collective bargaining contracts.
25		(6) Purchase of real estate, except that notice of
26		this type of contract with a value of more than $25,000

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1		must be published in the Procurement Bulletin within 10
2		calendar days after the deed is recorded in the county of
3		jurisdiction. The notice shall identify the real estate
4		purchased, the names of all parties to the contract, the
5		value of the contract, and the effective date of the
6		contract.
7		(7) Contracts necessary to prepare for anticipated
8		litigation, enforcement actions, or investigations,
9		provided that the chief legal counsel to the Governor
10		shall give his or her prior approval when the procuring
11		agency is one subject to the jurisdiction of the Governor,
12		and provided that the chief legal counsel of any other
13		procuring entity subject to this Code shall give his or
14		her prior approval when the procuring entity is not one
15		subject to the jurisdiction of the Governor.
16		(8) (Blank).
17		(9) Procurement expenditures by the Illinois
18		Conservation Foundation when only private funds are used.
19		(10) (Blank).
20		(11) Public-private agreements entered into according
21		to the procurement requirements of Section 20 of the
22		Public-Private Partnerships for Transportation Act and
23		design-build agreements entered into according to the
24		procurement requirements of Section 25 of the
25		Public-Private Partnerships for Transportation Act.
26		(12) (A) Contracts for legal, financial, and other

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1		professional and artistic services entered into by the
2		Illinois Finance Authority in which the State of Illinois
3		is not obligated. Such contracts shall be awarded through
4		a competitive process authorized by the members of the
5		Illinois Finance Authority and are subject to Sections
6		5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,
7		as well as the final approval by the members of the
8		Illinois Finance Authority of the terms of the contract.
9		(B) Contracts for legal and financial services entered
10		into by the Illinois Housing Development Authority in
11		connection with the issuance of bonds in which the State
12		of Illinois is not obligated. Such contracts shall be
13		awarded through a competitive process authorized by the
14		members of the Illinois Housing Development Authority and
15		are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
16		and 50-37 of this Code, as well as the final approval by
17		the members of the Illinois Housing Development Authority
18		of the terms of the contract.
19		(13) Contracts for services, commodities, and
20		equipment to support the delivery of timely forensic
21		science services in consultation with and subject to the
22		approval of the Chief Procurement Officer as provided in
23		subsection (d) of Section 5-4-3a of the Unified Code of
24		Corrections, except for the requirements of Sections
25		20-60, 20-65, 20-70, and 20-160 and Article 50 of this
26		Code; however, the Chief Procurement Officer may, in

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1		writing with justification, waive any certification
2		required under Article 50 of this Code. For any contracts
3		for services which are currently provided by members of a
4		collective bargaining agreement, the applicable terms of
5		the collective bargaining agreement concerning
6		subcontracting shall be followed.
7		On and after January 1, 2019, this paragraph (13),
8		except for this sentence, is inoperative.
9		(14) Contracts for participation expenditures required
10		by a domestic or international trade show or exhibition of
11		an exhibitor, member, or sponsor.
12		(15) Contracts with a railroad or utility that
13		requires the State to reimburse the railroad or utilities
14		for the relocation of utilities for construction or other
15		public purpose. Contracts included within this paragraph
16		(15) shall include, but not be limited to, those
17		associated with: relocations, crossings, installations,
18		and maintenance. For the purposes of this paragraph (15),
19		"railroad" means any form of non-highway ground
20		transportation that runs on rails or electromagnetic
21		guideways and "utility" means: (1) public utilities as
22		defined in Section 3-105 of the Public Utilities Act, (2)
23		telecommunications carriers as defined in Section 13-202
24		of the Public Utilities Act, (3) electric cooperatives as
25		defined in Section 3.4 of the Electric Supplier Act, (4)
26		telephone or telecommunications cooperatives as defined in

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1		Section 13-212 of the Public Utilities Act, (5) rural
2		water or waste water systems with 10,000 connections or
3		less, (6) a holder as defined in Section 21-201 of the
4		Public Utilities Act, and (7) municipalities owning or
5		operating utility systems consisting of public utilities
6		as that term is defined in Section 11-117-2 of the
7		Illinois Municipal Code.
8		(16) Procurement expenditures necessary for the
9		Department of Public Health to provide the delivery of
10		timely newborn screening services in accordance with the
11		Newborn Metabolic Screening Act.
12		(17) Procurement expenditures necessary for the
13		Department of Agriculture, the Department of Financial and
14		Professional Regulation, the Department of Human Services,
15		and the Department of Public Health to implement the
16		Compassionate Use of Medical Cannabis Program and Opioid
17		Alternative Pilot Program requirements and ensure access
18		to medical cannabis for patients with debilitating medical
19		conditions in accordance with the Compassionate Use of
20		Medical Cannabis Program Act.
21		(18) This Code does not apply to any procurements
22		necessary for the Department of Agriculture, the
23		Department of Financial and Professional Regulation, the
24		Department of Human Services, the Department of Commerce
25		and Economic Opportunity, and the Department of Public
26		Health to implement the Cannabis Regulation and Tax Act if

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1		the applicable agency has made a good faith determination
2		that it is necessary and appropriate for the expenditure
3		to fall within this exemption and if the process is
4		conducted in a manner substantially in accordance with the
5		requirements of Sections 20-160, 25-60, 30-22, 50-5,
6		50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
7		50-36, 50-37, 50-38, and 50-50 of this Code; however, for
8		Section 50-35, compliance applies only to contracts or
9		subcontracts over $100,000. Notice of each contract
10		entered into under this paragraph (18) that is related to
11		the procurement of goods and services identified in
12		paragraph (1) through (9) of this subsection shall be
13		published in the Procurement Bulletin within 14 calendar
14		days after contract execution. The Chief Procurement
15		Officer shall prescribe the form and content of the
16		notice. Each agency shall provide the Chief Procurement
17		Officer, on a monthly basis, in the form and content
18		prescribed by the Chief Procurement Officer, a report of
19		contracts that are related to the procurement of goods and
20		services identified in this subsection. At a minimum, this
21		report shall include the name of the contractor, a
22		description of the supply or service provided, the total
23		amount of the contract, the term of the contract, and the
24		exception to this Code utilized. A copy of any or all of
25		these contracts shall be made available to the Chief
26		Procurement Officer immediately upon request. The Chief

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1		Procurement Officer shall submit a report to the Governor
2		and General Assembly no later than November 1 of each year
3		that includes, at a minimum, an annual summary of the
4		monthly information reported to the Chief Procurement
5		Officer. This exemption becomes inoperative 5 years after
6		June 25, 2019 (the effective date of Public Act 101-27).
7		(19) Acquisition of modifications or adjustments,
8		limited to assistive technology devices and assistive
9		technology services, adaptive equipment, repairs, and
10		replacement parts to provide reasonable accommodations (i)
11		that enable a qualified applicant with a disability to
12		complete the job application process and be considered for
13		the position such qualified applicant desires, (ii) that
14		modify or adjust the work environment to enable a
15		qualified current employee with a disability to perform
16		the essential functions of the position held by that
17		employee, (iii) to enable a qualified current employee
18		with a disability to enjoy equal benefits and privileges
19		of employment as are enjoyed by other similarly situated
20		employees without disabilities, and (iv) that allow a
21		customer, client, claimant, or member of the public
22		seeking State services full use and enjoyment of and
23		access to its programs, services, or benefits.
24		For purposes of this paragraph (19):
25		"Assistive technology devices" means any item, piece
26		of equipment, or product system, whether acquired

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1		commercially off the shelf, modified, or customized, that
2		is used to increase, maintain, or improve functional
3		capabilities of individuals with disabilities.
4		"Assistive technology services" means any service that
5		directly assists an individual with a disability in
6		selection, acquisition, or use of an assistive technology
7		device.
8		"Qualified" has the same meaning and use as provided
9		under the federal Americans with Disabilities Act when
10		describing an individual with a disability.
11		(20) Procurement expenditures necessary for the
12		Illinois Commerce Commission to hire third-party
13		facilitators pursuant to Sections 16-105.17 and 16-108.18
14		of the Public Utilities Act or an ombudsman pursuant to
15		Section 16-107.5 of the Public Utilities Act, a
16		facilitator pursuant to Section 16-105.17 of the Public
17		Utilities Act, or a grid auditor pursuant to Section
18		16-105.10 of the Public Utilities Act.
19		(21) Procurement expenditures for the purchase,
20		renewal, and expansion of software, software licenses, or
21		software maintenance agreements that support the efforts
22		of the Illinois State Police to enforce, regulate, and
23		administer the Firearm Owners Identification Card Act, the
24		Firearm Concealed Carry Act, the Firearms Restraining
25		Order Act, the Firearm Dealer License Certification Act,
26		the Law Enforcement Agencies Data System (LEADS), the

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1		Uniform Crime Reporting Act, the Criminal Identification
2		Act, the Illinois Uniform Conviction Information Act, and
3		the Gun Trafficking Information Act, or establish or
4		maintain record management systems necessary to conduct
5		human trafficking investigations or gun trafficking or
6		other stolen firearm investigations. This paragraph (21)
7		applies to contracts entered into on or after January 10,
8		2023 (the effective date of Public Act 102-1116) this
9		amendatory Act of the 102nd General Assembly and the
10		renewal of contracts that are in effect on January 10,
11		2023 (the effective date of Public Act 102-1116) this
12		amendatory Act of the 102nd General Assembly.
13		(22) Contracts for project management services and
14		system integration services required for the completion of
15		the State's enterprise resource planning project. This
16		exemption becomes inoperative 5 years after June 7, 2023
17		(the effective date of the changes made to this Section by
18		Public Act 103-8) this amendatory Act of the 103rd General
19		Assembly. This paragraph (22) applies to contracts entered
20		into on or after June 7, 2023 (the effective date of the
21		changes made to this Section by Public Act 103-8) this
22		amendatory Act of the 103rd General Assembly and the
23		renewal of contracts that are in effect on June 7, 2023
24		(the effective date of the changes made to this Section by
25		Public Act 103-8) this amendatory Act of the 103rd General
26		Assembly.

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1		(23) (22) Procurements necessary for the Department of
2		Insurance to implement the Illinois Health Benefits
3		Exchange Law if the Department of Insurance has made a
4		good faith determination that it is necessary and
5		appropriate for the expenditure to fall within this
6		exemption. The procurement process shall be conducted in a
7		manner substantially in accordance with the requirements
8		of Sections 20-160 and 25-60 and Article 50 of this Code. A
9		copy of these contracts shall be made available to the
10		Chief Procurement Officer immediately upon request. This
11		paragraph is inoperative 5 years after June 27, 2023 (the
12		effective date of Public Act 103-103) this amendatory Act
13		of the 103rd General Assembly.
14		Notwithstanding any other provision of law, for contracts
15		with an annual value of more than $100,000 entered into on or
16		after October 1, 2017 under an exemption provided in any
17		paragraph of this subsection (b), except paragraph (1), (2),
18		or (5), each State agency shall post to the appropriate
19		procurement bulletin the name of the contractor, a description
20		of the supply or service provided, the total amount of the
21		contract, the term of the contract, and the exception to the
22		Code utilized. The chief procurement officer shall submit a
23		report to the Governor and General Assembly no later than
24		November 1 of each year that shall include, at a minimum, an
25		annual summary of the monthly information reported to the
26		chief procurement officer.

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1		(c) This Code does not apply to the electric power
2		procurement process provided for under Section 1-75 of the
3		Illinois Power Agency Act and Section 16-111.5 of the Public
4		Utilities Act. This Code does not apply to the procurement of
5		technical and policy experts pursuant to Section 1-129 of the
6		Illinois Power Agency Act.
7		(d) Except for Section 20-160 and Article 50 of this Code,
8		and as expressly required by Section 9.1 of the Illinois
9		Lottery Law, the provisions of this Code do not apply to the
10		procurement process provided for under Section 9.1 of the
11		Illinois Lottery Law.
12		(e) This Code does not apply to the process used by the
13		Capital Development Board to retain a person or entity to
14		assist the Capital Development Board with its duties related
15		to the determination of costs of a clean coal SNG brownfield
16		facility, as defined by Section 1-10 of the Illinois Power
17		Agency Act, as required in subsection (h-3) of Section 9-220
18		of the Public Utilities Act, including calculating the range
19		of capital costs, the range of operating and maintenance
20		costs, or the sequestration costs or monitoring the
21		construction of clean coal SNG brownfield facility for the
22		full duration of construction.
23		(f) (Blank).
24		(g) (Blank).
25		(h) This Code does not apply to the process to procure or
26		contracts entered into in accordance with Sections 11-5.2 and

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1		11-5.3 of the Illinois Public Aid Code.
2		(i) Each chief procurement officer may access records
3		necessary to review whether a contract, purchase, or other
4		expenditure is or is not subject to the provisions of this
5		Code, unless such records would be subject to attorney-client
6		privilege.
7		(j) This Code does not apply to the process used by the
8		Capital Development Board to retain an artist or work or works
9		of art as required in Section 14 of the Capital Development
10		Board Act.
11		(k) This Code does not apply to the process to procure
12		contracts, or contracts entered into, by the State Board of
13		Elections or the State Electoral Board for hearing officers
14		appointed pursuant to the Election Code.
15		(l) This Code does not apply to the processes used by the
16		Illinois Student Assistance Commission to procure supplies and
17		services paid for from the private funds of the Illinois
18		Prepaid Tuition Fund. As used in this subsection (l), "private
19		funds" means funds derived from deposits paid into the
20		Illinois Prepaid Tuition Trust Fund and the earnings thereon.
21		(m) This Code shall apply regardless of the source of
22		funds with which contracts are paid, including federal
23		assistance moneys. Except as specifically provided in this
24		Code, this Code shall not apply to procurement expenditures
25		necessary for the Department of Public Health to conduct the
26		Healthy Illinois Survey in accordance with Section 2310-431 of

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1		the Department of Public Health Powers and Duties Law of the
2		Civil Administrative Code of Illinois.
3		(Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22;
4		102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff.
5		9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22;
6		102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff.
7		6-27-23; revised 9-5-23.)
8		Section 20. The Counties Code is amended by changing
9		Section 5-12020 as follows:
10		(55 ILCS 5/5-12020)
11		Sec. 5-12020. Commercial wind energy facilities and
12		commercial solar energy facilities.
13		(a) As used in this Section:
14		"Commercial solar energy facility" means a "commercial
15		solar energy system" as defined in Section 10-720 of the
16		Property Tax Code. "Commercial solar energy facility" does not
17		mean a utility-scale solar energy facility being constructed
18		at a site that was eligible to participate in a procurement
19		event conducted by the Illinois Power Agency pursuant to
20		subsection (c-5) of Section 1-75 of the Illinois Power Agency
21		Act.
22		"Commercial wind energy facility" means a wind energy
23		conversion facility of equal or greater than 500 kilowatts in
24		total nameplate generating capacity. "Commercial wind energy

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1		facility" includes a wind energy conversion facility seeking
2		an extension of a permit to construct granted by a county or
3		municipality before January 27, 2023 (the effective date of
4		Public Act 102-1123) this amendatory Act of the 102nd General
5		Assembly.
6		"Facility owner" means (i) a person with a direct
7		ownership interest in a commercial wind energy facility or a
8		commercial solar energy facility, or both, regardless of
9		whether the person is involved in acquiring the necessary
10		rights, permits, and approvals or otherwise planning for the
11		construction and operation of the facility, and (ii) at the
12		time the facility is being developed, a person who is acting as
13		a developer of the facility by acquiring the necessary rights,
14		permits, and approvals or by planning for the construction and
15		operation of the facility, regardless of whether the person
16		will own or operate the facility.
17		"Nonparticipating property" means real property that is
18		not a participating property.
19		"Nonparticipating residence" means a residence that is
20		located on nonparticipating property and that is existing and
21		occupied on the date that an application for a permit to
22		develop the commercial wind energy facility or the commercial
23		solar energy facility is filed with the county.
24		"Occupied community building" means any one or more of the
25		following buildings that is existing and occupied on the date
26		that the application for a permit to develop the commercial

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1		wind energy facility or the commercial solar energy facility
2		is filed with the county: a school, place of worship, day care
3		facility, public library, or community center.
4		"Participating property" means real property that is the
5		subject of a written agreement between a facility owner and
6		the owner of the real property that provides the facility
7		owner an easement, option, lease, or license to use the real
8		property for the purpose of constructing a commercial wind
9		energy facility, a commercial solar energy facility, or
10		supporting facilities. "Participating property" also includes
11		real property that is owned by a facility owner for the purpose
12		of constructing a commercial wind energy facility, a
13		commercial solar energy facility, or supporting facilities.
14		"Participating residence" means a residence that is
15		located on participating property and that is existing and
16		occupied on the date that an application for a permit to
17		develop the commercial wind energy facility or the commercial
18		solar energy facility is filed with the county.
19		"Protected lands" means real property that is:
20		(1) subject to a permanent conservation right
21		consistent with the Real Property Conservation Rights Act;
22		or
23		(2) registered or designated as a nature preserve,
24		buffer, or land and water reserve under the Illinois
25		Natural Areas Preservation Act.
26		"Supporting facilities" means the transmission lines,

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1		substations, access roads, meteorological towers, storage
2		containers, and equipment associated with the generation and
3		storage of electricity by the commercial wind energy facility
4		or commercial solar energy facility.
5		"Wind tower" includes the wind turbine tower, nacelle, and
6		blades.
7		(b) Notwithstanding any other provision of law or whether
8		the county has formed a zoning commission and adopted formal
9		zoning under Section 5-12007, a county may establish standards
10		for commercial wind energy facilities, commercial solar energy
11		facilities, or both. The standards may include all of the
12		requirements specified in this Section but may not include
13		requirements for commercial wind energy facilities or
14		commercial solar energy facilities that are more restrictive
15		than specified in this Section. A county may also regulate the
16		siting of commercial wind energy facilities with standards
17		that are not more restrictive than the requirements specified
18		in this Section in unincorporated areas of the county that are
19		outside the zoning jurisdiction of a municipality and that are
20		outside the 1.5-mile radius surrounding the zoning
21		jurisdiction of a municipality.
22		(c) If a county has elected to establish standards under
23		subsection (b), before the county grants siting approval or a
24		special use permit for a commercial wind energy facility or a
25		commercial solar energy facility, or modification of an
26		approved siting or special use permit, the county board of the

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1		county in which the facility is to be sited or the zoning board
2		of appeals for the county shall hold at least one public
3		hearing. The public hearing shall be conducted in accordance
4		with the Open Meetings Act and shall be held not more than 60
5		45 days after the filing of the application for the facility.
6		The county shall allow interested parties to a special use
7		permit an opportunity to present evidence and to cross-examine
8		witnesses at the hearing, but the county may impose reasonable
9		restrictions on the public hearing, including reasonable time
10		limitations on the presentation of evidence and the
11		cross-examination of witnesses. The county shall also allow
12		public comment at the public hearing in accordance with the
13		Open Meetings Act. The county shall make its siting and
14		permitting decisions not more than 30 days after the
15		conclusion of the public hearing. Notice of the hearing shall
16		be published in a newspaper of general circulation in the
17		county. A facility owner must enter into an agricultural
18		impact mitigation agreement with the Department of Agriculture
19		prior to the date of the required public hearing. A commercial
20		wind energy facility owner seeking an extension of a permit
21		granted by a county prior to July 24, 2015 (the effective date
22		of Public Act 99-132) must enter into an agricultural impact
23		mitigation agreement with the Department of Agriculture prior
24		to a decision by the county to grant the permit extension.
25		Counties may allow test wind towers or test solar energy
26		systems to be sited without formal approval by the county

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1		board.
2		(d) A county with an existing zoning ordinance in conflict
3		with this Section shall amend that zoning ordinance to be in
4		compliance with this Section within 120 days after January 27,
5		2023 (the effective date of Public Act 102-1123) this
6		amendatory Act of the 102nd General Assembly.
7		(e) A county may require:
8		(1) a wind tower of a commercial wind energy facility
9		to be sited as follows, with setback distances measured
10		from the center of the base of the wind tower:
11		Setback Description Setback Distance
12		Occupied Community 2.1 times the maximum blade tip
13		Buildings height of the wind tower to the
14		nearest point on the outside
15		wall of the structure
16		Participating Residences 1.1 times the maximum blade tip
17		height of the wind tower to the
18		nearest point on the outside
19		wall of the structure
20		Nonparticipating Residences 2.1 times the maximum blade tip
21		height of the wind tower to the
22		nearest point on the outside

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1		wall of the structure
2		Boundary Lines of None
3		Participating Property
4		Boundary Lines of 1.1 times the maximum blade tip
5		Nonparticipating Property height of the wind tower to the
6		nearest point on the property
7		line of the nonparticipating
8		property
9		Public Road Rights-of-Way 1.1 times the maximum blade tip
10		height of the wind tower
11		to the center point of the
12		public road right-of-way
13		Overhead Communication and 1.1 times the maximum blade tip
14		Electric Transmission height of the wind tower to the
15		and Distribution Facilities nearest edge of the property
16		(Not Including Overhead line, easement, or
17		Utility Service Lines to right-of-way right of way
18		Individual Houses or containing the overhead line
19		Outbuildings)
20		Overhead Utility Service None
21		Lines to Individual

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1		Houses or Outbuildings
2		Fish and Wildlife Areas 2.1 times the maximum blade
3		and Illinois Nature tip height of the wind tower
4		Preserve Commission to the nearest point on the
5		Protected Lands property line of the fish and
6		wildlife area or protected
7		land
8		This Section does not exempt or excuse compliance with
9		electric facility clearances approved or required by the
10		National Electrical Code, The National Electrical Safety
11		Code, Illinois Commerce Commission, Federal Energy
12		Regulatory Commission, and their designees or successors.
13		(2) a wind tower of a commercial wind energy facility
14		to be sited so that industry standard computer modeling
15		indicates that any occupied community building or
16		nonparticipating residence will not experience more than
17		30 hours per year of shadow flicker under planned
18		operating conditions;
19		(3) a commercial solar energy facility to be sited as
20		follows, with setback distances measured from the nearest
21		edge of any component of the facility:
22		Setback Description Setback Distance

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1		Occupied Community 150 feet from the nearest
2		Buildings and Dwellings on point on the outside wall
3		Nonparticipating Properties of the structure
4		Boundary Lines of None
5		Participating Property
6		Public Road Rights-of-Way 50 feet from the nearest
7		edge
8		Boundary Lines of 50 feet to the nearest
9		Nonparticipating Property point on the property
10		line of the nonparticipating
11		property
12		(4) a commercial solar energy facility to be sited so
13		that the facility's perimeter is enclosed by fencing
14		having a height of at least 6 feet and no more than 25
15		feet; and
16		(5) a commercial solar energy facility to be sited so
17		that no component of a solar panel has a height of more
18		than 20 feet above ground when the solar energy facility's
19		arrays are at full tilt.
20		The requirements set forth in this subsection (e) may be
21		waived subject to the written consent of the owner of each
22		affected nonparticipating property.

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1		(f) A county may not set a sound limitation for wind towers
2		in commercial wind energy facilities or any components in
3		commercial solar energy facilities facility that is more
4		restrictive than the sound limitations established by the
5		Illinois Pollution Control Board under 35 Ill. Adm. Code Parts
6		900, 901, and 910.
7		(g) A county may not place any restriction on the
8		installation or use of a commercial wind energy facility or a
9		commercial solar energy facility unless it adopts an ordinance
10		that complies with this Section. A county may not establish
11		siting standards for supporting facilities that preclude
12		development of commercial wind energy facilities or commercial
13		solar energy facilities.
14		A request for siting approval or a special use permit for a
15		commercial wind energy facility or a commercial solar energy
16		facility, or modification of an approved siting or special use
17		permit, shall be approved if the request is in compliance with
18		the standards and conditions imposed in this Act, the zoning
19		ordinance adopted consistent with this Code, and the
20		conditions imposed under State and federal statutes and
21		regulations.
22		(h) A county may not adopt zoning regulations that
23		disallow, permanently or temporarily, commercial wind energy
24		facilities or commercial solar energy facilities from being
25		developed or operated in any district zoned to allow
26		agricultural or industrial uses.

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1		(i) A county may not require permit application fees for a
2		commercial wind energy facility or commercial solar energy
3		facility that are unreasonable. All application fees imposed
4		by the county shall be consistent with fees for projects in the
5		county with similar capital value and cost.
6		(j) Except as otherwise provided in this Section, a county
7		shall not require standards for construction, decommissioning,
8		or deconstruction of a commercial wind energy facility or
9		commercial solar energy facility or related financial
10		assurances that are more restrictive than those included in
11		the Department of Agriculture's standard wind farm
12		agricultural impact mitigation agreement, template 81818, or
13		standard solar agricultural impact mitigation agreement,
14		version 8.19.19, as applicable and in effect on December 31,
15		2022. The amount of any decommissioning payment shall be in
16		accordance with the financial assurance limited to the cost
17		identified in the decommissioning or deconstruction plan, as
18		required by those agricultural impact mitigation agreements,
19		minus the salvage value of the project.
20		(j-5) A commercial wind energy facility or a commercial
21		solar energy facility shall file a farmland drainage plan with
22		the county and impacted drainage districts outlining how
23		surface and subsurface drainage of farmland will be restored
24		during and following construction or deconstruction of the
25		facility. The plan is to be created independently by the
26		facility developer and shall include the location of any

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1		potentially impacted drainage district facilities to the
2		extent this information is publicly available from the county
3		or the drainage district, plans to repair any subsurface
4		drainage affected during construction or deconstruction using
5		procedures outlined in the agricultural impact mitigation
6		agreement entered into by the commercial wind energy facility
7		owner or commercial solar energy facility owner, and
8		procedures for the repair and restoration of surface drainage
9		affected during construction or deconstruction. All surface
10		and subsurface damage shall be repaired as soon as reasonably
11		practicable.
12		(k) A county may not condition approval of a commercial
13		wind energy facility or commercial solar energy facility on a
14		property value guarantee and may not require a facility owner
15		to pay into a neighboring property devaluation escrow account.
16		(l) A county may require certain vegetative screening
17		surrounding a commercial wind energy facility or commercial
18		solar energy facility but may not require earthen berms or
19		similar structures.
20		(m) A county may set blade tip height limitations for wind
21		towers in commercial wind energy facilities but may not set a
22		blade tip height limitation that is more restrictive than the
23		height allowed under a Determination of No Hazard to Air
24		Navigation by the Federal Aviation Administration under 14 CFR
25		Part 77.
26		(n) A county may require that a commercial wind energy

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1		facility owner or commercial solar energy facility owner
2		provide:
3		(1) the results and recommendations from consultation
4		with the Illinois Department of Natural Resources that are
5		obtained through the Ecological Compliance Assessment Tool
6		(EcoCAT) or a comparable successor tool; and
7		(2) the results of the United States Fish and Wildlife
8		Service's Information for Planning and Consulting
9		environmental review or a comparable successor tool that
10		is consistent with (i) the "U.S. Fish and Wildlife
11		Service's Land-Based Wind Energy Guidelines" and (ii) any
12		applicable United States Fish and Wildlife Service solar
13		wildlife guidelines that have been subject to public
14		review.
15		(o) A county may require a commercial wind energy facility
16		or commercial solar energy facility to adhere to the
17		recommendations provided by the Illinois Department of Natural
18		Resources in an EcoCAT natural resource review report under 17
19		Ill. Adm. Admin. Code Part 1075.
20		(p) A county may require a facility owner to:
21		(1) demonstrate avoidance of protected lands as
22		identified by the Illinois Department of Natural Resources
23		and the Illinois Nature Preserve Commission; or
24		(2) consider the recommendations of the Illinois
25		Department of Natural Resources for setbacks from
26		protected lands, including areas identified by the

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1		Illinois Nature Preserve Commission.
2		(q) A county may require that a facility owner provide
3		evidence of consultation with the Illinois State Historic
4		Preservation Office to assess potential impacts on
5		State-registered historic sites under the Illinois State
6		Agency Historic Resources Preservation Act.
7		(r) To maximize community benefits, including, but not
8		limited to, reduced stormwater runoff, flooding, and erosion
9		at the ground mounted solar energy system, improved soil
10		health, and increased foraging habitat for game birds,
11		songbirds, and pollinators, a county may (1) require a
12		commercial solar energy facility owner to plant, establish,
13		and maintain for the life of the facility vegetative ground
14		cover, consistent with the goals of the Pollinator-Friendly
15		Solar Site Act and (2) require the submittal of a vegetation
16		management plan that is in compliance with the agricultural
17		impact mitigation agreement in the application to construct
18		and operate a commercial solar energy facility in the county
19		if the vegetative ground cover and vegetation management plan
20		comply with the requirements of the underlying agreement with
21		the landowner or landowners where the facility will be
22		constructed.
23		No later than 90 days after January 27, 2023 (the
24		effective date of Public Act 102-1123) this amendatory Act of
25		the 102nd General Assembly, the Illinois Department of Natural
26		Resources shall develop guidelines for vegetation management

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1		plans that may be required under this subsection for
2		commercial solar energy facilities. The guidelines must
3		include guidance for short-term and long-term property
4		management practices that provide and maintain native and
5		non-invasive naturalized perennial vegetation to protect the
6		health and well-being of pollinators.
7		(s) If a facility owner enters into a road use agreement
8		with the Illinois Department of Transportation, a road
9		district, or other unit of local government relating to a
10		commercial wind energy facility or a commercial solar energy
11		facility, the road use agreement shall require the facility
12		owner to be responsible for (i) the reasonable cost of
13		improving roads used by the facility owner to construct the
14		commercial wind energy facility or the commercial solar energy
15		facility and (ii) the reasonable cost of repairing roads used
16		by the facility owner during construction of the commercial
17		wind energy facility or the commercial solar energy facility
18		so that those roads are in a condition that is safe for the
19		driving public after the completion of the facility's
20		construction. Roadways improved in preparation for and during
21		the construction of the commercial wind energy facility or
22		commercial solar energy facility shall be repaired and
23		restored to the improved condition at the reasonable cost of
24		the developer if the roadways have degraded or were damaged as
25		a result of construction-related activities.
26		The road use agreement shall not require the facility

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1		owner to pay costs, fees, or charges for road work that is not
2		specifically and uniquely attributable to the construction of
3		the commercial wind energy facility or the commercial solar
4		energy facility. Road-related fees, permit fees, or other
5		charges imposed by the Illinois Department of Transportation,
6		a road district, or other unit of local government under a road
7		use agreement with the facility owner shall be reasonably
8		related to the cost of administration of the road use
9		agreement.
10		(s-5) The facility owner shall also compensate landowners
11		for crop losses or other agricultural damages resulting from
12		damage to the drainage system caused by the construction of
13		the commercial wind energy facility or the commercial solar
14		energy facility. The commercial wind energy facility owner or
15		commercial solar energy facility owner shall repair or pay for
16		the repair of all damage to the subsurface drainage system
17		caused by the construction of the commercial wind energy
18		facility or the commercial solar energy facility in accordance
19		with the agriculture impact mitigation agreement requirements
20		for repair of drainage. The commercial wind energy facility
21		owner or commercial solar energy facility owner shall repair
22		or pay for the repair and restoration of surface drainage
23		caused by the construction or deconstruction of the commercial
24		wind energy facility or the commercial solar energy facility
25		as soon as reasonably practicable.
26		(t) Notwithstanding any other provision of law, a facility

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1		owner with siting approval from a county to construct a
2		commercial wind energy facility or a commercial solar energy
3		facility is authorized to cross or impact a drainage system,
4		including, but not limited to, drainage tiles, open drainage
5		ditches districts, culverts, and water gathering vaults, owned
6		or under the control of a drainage district under the Illinois
7		Drainage Code without obtaining prior agreement or approval
8		from the drainage district in accordance with the farmland
9		drainage plan required by subsection (j-5) , except that the
10		facility owner shall repair or pay for the repair of all damage
11		to the drainage system caused by the construction of the
12		commercial wind energy facility or the commercial solar energy
13		facility within a reasonable time after construction of the
14		commercial wind energy facility or the commercial solar energy
15		facility is complete.
16		(u) The amendments to this Section adopted in Public Act
17		102-1123 do not apply to: (1) an application for siting
18		approval or for a special use permit for a commercial wind
19		energy facility or commercial solar energy facility if the
20		application was submitted to a unit of local government before
21		January 27, 2023 (the effective date of Public Act 102-1123)
22		this amendatory Act of the 102nd General Assembly; (2) a
23		commercial wind energy facility or a commercial solar energy
24		facility if the facility owner has submitted an agricultural
25		impact mitigation agreement to the Department of Agriculture
26		before January 27, 2023 (the effective date of Public Act

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1		102-1123) this amendatory Act of the 102nd General Assembly;
2		or (3) a commercial wind energy or commercial solar energy
3		development on property that is located within an enterprise
4		zone certified under the Illinois Enterprise Zone Act, that
5		was classified as industrial by the appropriate zoning
6		authority on or before January 27, 2023, and that is located
7		within 4 miles of the intersection of Interstate 88 and
8		Interstate 39.
9		(Source: P.A. 102-1123, eff. 1-27-23; 103-81, eff. 6-9-23;
10		revised 9-25-23.)
11		Section 25. The Public Utilities Act is amended by adding
12		Section 4-610 as follows:
13		(220 ILCS 5/4-610 new)
14		Sec. 4-610. Thermal energy networks.
15		(a) The General Assembly finds that:
16		(1) the State has an interest in decarbonizing
17		buildings in a manner that is affordable and accessible,
18		preserves and creates living-wage jobs, and retains the
19		knowledge and experience of the existing utility
20		workforce;
21		(2) thermal energy networks have the potential to
22		affordably decarbonize buildings at the community-scale
23		and utility-scale and help achieve the goals of the
24		Climate and Equitable Jobs Act (Public Act 102-662);

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1		(3) the construction industry is highly skilled and
2		labor intensive, and the installation of modern thermal
3		energy networks involves particularly complex work,
4		therefore effective qualification standards for craft
5		labor personnel employed on these projects are critically
6		needed to promote successful project delivery; and
7		(4) it is the intent of the General Assembly to
8		establish a stakeholder workshop within the Commission to
9		promote the successful planning and delivery of thermal
10		energy networks in an equitable manner that reduces
11		emissions, offers affordable building decarbonization, and
12		provides opportunities for employment with fair labor
13		standards and preapprenticeship and apprenticeship
14		programs.
15		(b) As used in this Section:
16		"Thermal energy" means piped noncombustible fluids used
17		for transferring heat into and out of buildings for the
18		purpose of reducing any resultant onsite greenhouse gas
19		emissions of all types of heating and cooling processes,
20		including, but not limited to, comfort heating and cooling,
21		domestic hot water, and refrigeration.
22		"Thermal energy network" means all real estate, fixtures,
23		and personal property operated, owned, used, or to be used
24		for, in connection with, or to facilitate a utility-scale
25		distribution infrastructure project that supplies thermal
26		energy.

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1		(c) The Commission, in order to develop a regulatory
2		structure for utility thermal energy networks that scale with
3		affordable and accessible building electrification, protect
4		utility customers, and promote the successful planning and
5		delivery of thermal energy networks, shall convene a workshop
6		process for the purpose of establishing an open, inclusive,
7		and cooperative forum regarding such thermal energy networks.
8		The workshops may be facilitated by an independent,
9		third-party facilitator selected by the Commission. The series
10		of workshops shall include no fewer than 3 workshops. After
11		the conclusion of the workshops, the Commission shall open a
12		comment period that allows interested and diverse stakeholders
13		to submit comments and recommendations regarding the thermal
14		energy networks. Based on the workshop process and stakeholder
15		comments and recommendations offered verbally or in writing
16		during the workshops and in writing during the comment period
17		following the workshops, the Commission or, if applicable, the
18		independent third-party facilitator, shall prepare a report,
19		to be submitted to the Governor and the General Assembly no
20		later than March 1, 2024, describing the stakeholders,
21		discussions, proposals, and areas of consensus and
22		disagreement from the workshop process, and making
23		recommendations regarding thermal energy networks.
24		(d) The workshop shall be designed to achieve the
25		following objectives:
26		(1) determine appropriate ownership, market, and rate

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1		structures for thermal energy networks and whether the
2		provision of thermal energy services by thermal network
3		energy providers is in the public interest;
4		(2) consider project designs that could maximize the
5		value of existing State energy efficiency and
6		weatherization programs and maximize federal funding
7		opportunities to the extent practicable;
8		(3) determine whether thermal energy network projects
9		further climate justice and emissions reductions and
10		benefits to utility customers and society at large,
11		including but not limited to public health benefits in
12		areas with disproportionate environmental burdens, job
13		retention and creation, reliability, and increased
14		affordability of renewable thermal energy options;
15		(4) consider approaches to thermal energy network
16		projects that advance financial and technical approaches
17		to equitable and affordable building electrification,
18		including access to thermal energy network benefits by low
19		and moderate income households; and
20		(5) consider approaches to promote the training and
21		transition of utility workers to work on thermal energy
22		networks.
23		Section 95. No acceleration or delay. Where this Act makes
24		changes in a statute that is represented in this Act by text
25		that is not yet or no longer in effect (for example, a Section

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1		represented by multiple versions), the use of that text does
2		not accelerate or delay the taking effect of (i) the changes
3		made by this Act or (ii) provisions derived from any other
4		Public Act.