HB3445 Engrossed LRB103 29599 AMQ 55994 b
1		AN ACT concerning State government.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Illinois Power Agency Act is amended by
5		changing Section 1-75 as follows:
6		(20 ILCS 3855/1-75)
7		Sec. 1-75. Planning and Procurement Bureau. The Planning
8		and Procurement Bureau has the following duties and
9		responsibilities:
10		(a) The Planning and Procurement Bureau shall each year,
11		beginning in 2008, develop procurement plans and conduct
12		competitive procurement processes in accordance with the
13		requirements of Section 16-111.5 of the Public Utilities Act
14		for the eligible retail customers of electric utilities that
15		on December 31, 2005 provided electric service to at least
16		100,000 customers in Illinois. Beginning with the delivery
17		year commencing on June 1, 2017, the Planning and Procurement
18		Bureau shall develop plans and processes for the procurement
19		of zero emission credits from zero emission facilities in
20		accordance with the requirements of subsection (d-5) of this
21		Section. Beginning on the effective date of this amendatory
22		Act of the 102nd General Assembly, the Planning and
23		Procurement Bureau shall develop plans and processes for the

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

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

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

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

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

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

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1		than 120 days after the effective date of this amendatory
2		Act of the 102nd General Assembly, the Agency shall
3		release for comment a revision to the long-term renewable
4		resources procurement plan, updating elements of the most
5		recently approved plan as needed to comply with this
6		amendatory Act of the 102nd General Assembly, and any
7		long-term renewable resources procurement plan update
8		published by the Agency but not yet approved by the
9		Illinois Commerce Commission shall be withdrawn. The
10		long-term renewable resources procurement plans shall be
11		subject to review and approval by the Commission under
12		Section 16-111.5 of the Public Utilities Act.
13		(B) Subject to subparagraph (F) of this paragraph (1),
14		the long-term renewable resources procurement plan shall
15		attempt to meet the goals for procurement of renewable
16		energy credits at levels of at least the following overall
17		percentages: 13% by the 2017 delivery year; increasing by
18		at least 1.5% each delivery year thereafter to at least
19		25% by the 2025 delivery year; increasing by at least 3%
20		each delivery year thereafter to at least 40% by the 2030
21		delivery year, and continuing at no less than 40% for each
22		delivery year thereafter. The Agency shall attempt to
23		procure 50% by delivery year 2040. The Agency shall
24		determine the annual increase between delivery year 2030
25		and delivery year 2040, if any, taking into account energy
26		demand, other energy resources, and other public policy

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1		goals. In the event of a conflict between these goals and
2		the new wind and new photovoltaic procurement requirements
3		described in items (i) through (iii) of subparagraph (C)
4		of this paragraph (1), the long-term plan shall prioritize
5		compliance with the new wind and new photovoltaic
6		procurement requirements described in items (i) through
7		(iii) of subparagraph (C) of this paragraph (1) over the
8		annual percentage targets described in this subparagraph
9		(B). The Agency shall not comply with the annual
10		percentage targets described in this subparagraph (B) by
11		procuring renewable energy credits that are unlikely to
12		lead to the development of new renewable resources.
13		For the delivery year beginning June 1, 2017, the
14		procurement plan shall attempt to include, subject to the
15		prioritization outlined in this subparagraph (B),
16		cost-effective renewable energy resources equal to at
17		least 13% of each utility's load for eligible retail
18		customers and 13% of the applicable portion of each
19		utility's load for retail customers who are not eligible
20		retail customers, which applicable portion shall equal 50%
21		of the utility's load for retail customers who are not
22		eligible retail customers on February 28, 2017.
23		For the delivery year beginning June 1, 2018, the
24		procurement plan shall attempt to include, subject to the
25		prioritization outlined in this subparagraph (B),
26		cost-effective renewable energy resources equal to at

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

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1		energy credits as part of renewable energy resources,
2		shall be used to meet the goals set forth in this
3		subsection (c) for the delivery year.
4		(C) The long-term renewable resources procurement plan
5		described in subparagraph (A) of this paragraph (1) shall
6		include the procurement of renewable energy credits from
7		new projects in amounts equal to at least the following:
8		(i) 10,000,000 renewable energy credits delivered
9		annually by the end of the 2021 delivery year, and
10		increasing ratably to reach 45,000,000 renewable
11		energy credits delivered annually from new wind and
12		solar projects by the end of delivery year 2030 such
13		that the goals in subparagraph (B) of this paragraph
14		(1) are met entirely by procurements of renewable
15		energy credits from new wind and photovoltaic
16		projects. Of that amount, to the extent possible, the
17		Agency shall procure 45% from wind projects and 55%
18		from photovoltaic projects. Of the amount to be
19		procured from photovoltaic projects, the Agency shall
20		procure: at least 50% from solar photovoltaic projects
21		using the program outlined in subparagraph (K) of this
22		paragraph (1) from distributed renewable energy
23		generation devices or community renewable generation
24		projects; at least 47% from utility-scale solar
25		projects; at least 3% from brownfield site
26		photovoltaic projects that are not community renewable

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1		generation projects.
2		In developing the long-term renewable resources
3		procurement plan, the Agency shall consider other
4		approaches, in addition to competitive procurements,
5		that can be used to procure renewable energy credits
6		from brownfield site photovoltaic projects and thereby
7		help return blighted or contaminated land to
8		productive use while enhancing public health and the
9		well-being of Illinois residents, including those in
10		environmental justice communities, as defined using
11		existing methodologies and findings used by the Agency
12		and its Administrator in its Illinois Solar for All
13		Program.
14		(ii) In any given delivery year, if forecasted
15		expenses are less than the maximum budget available
16		under subparagraph (E) of this paragraph (1), the
17		Agency shall continue to procure new renewable energy
18		credits until that budget is exhausted in the manner
19		outlined in item (i) of this subparagraph (C).
20		(iii) For purposes of this Section:
21		"New wind projects" means wind renewable energy
22		facilities that are energized after June 1, 2017 for
23		the delivery year commencing June 1, 2017.
24		"New photovoltaic projects" means photovoltaic
25		renewable energy facilities that are energized after
26		June 1, 2017. Photovoltaic projects developed under

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1		Section 1-56 of this Act shall not apply towards the
2		new photovoltaic project requirements in this
3		subparagraph (C).
4		For purposes of calculating whether the Agency has
5		procured enough new wind and solar renewable energy
6		credits required by this subparagraph (C), renewable
7		energy facilities that have a multi-year renewable
8		energy credit delivery contract with the utility
9		through at least delivery year 2030 shall be
10		considered new, however no renewable energy credits
11		from contracts entered into before June 1, 2021 shall
12		be used to calculate whether the Agency has procured
13		the correct proportion of new wind and new solar
14		contracts described in this subparagraph (C) for
15		delivery year 2021 and thereafter.
16		(D) Renewable energy credits shall be cost effective.
17		For purposes of this subsection (c), "cost effective"
18		means that the costs of procuring renewable energy
19		resources do not cause the limit stated in subparagraph
20		(E) of this paragraph (1) to be exceeded and, for
21		renewable energy credits procured through a competitive
22		procurement event, do not exceed benchmarks based on
23		market prices for like products in the region. For
24		purposes of this subsection (c), "like products" means
25		contracts for renewable energy credits from the same or
26		substantially similar technology, same or substantially

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1		similar vintage (new or existing), the same or
2		substantially similar quantity, and the same or
3		substantially similar contract length and structure.
4		Benchmarks shall reflect development, financing, or
5		related costs resulting from requirements imposed through
6		other provisions of State law, including, but not limited
7		to, requirements in subparagraphs (P) and (Q) of this
8		paragraph (1) and the Renewable Energy Facilities
9		Agricultural Impact Mitigation Act. Confidential
10		benchmarks shall be developed by the procurement
11		administrator, in consultation with the Commission staff,
12		Agency staff, and the procurement monitor and shall be
13		subject to Commission review and approval. If price
14		benchmarks for like products in the region are not
15		available, the procurement administrator shall establish
16		price benchmarks based on publicly available data on
17		regional technology costs and expected current and future
18		regional energy prices. The benchmarks in this Section
19		shall not be used to curtail or otherwise reduce
20		contractual obligations entered into by or through the
21		Agency prior to June 1, 2017 (the effective date of Public
22		Act 99-906).
23		(E) For purposes of this subsection (c), the required
24		procurement of cost-effective renewable energy resources
25		for a particular year commencing prior to June 1, 2017
26		shall be measured as a percentage of the actual amount of

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1		electricity (megawatt-hours) supplied by the electric
2		utility to eligible retail customers in the delivery year
3		ending immediately prior to the procurement, and, for
4		delivery years commencing on and after June 1, 2017, the
5		required procurement of cost-effective renewable energy
6		resources for a particular year shall be measured as a
7		percentage of the actual amount of electricity
8		(megawatt-hours) delivered by the electric utility in the
9		delivery year ending immediately prior to the procurement,
10		to all retail customers in its service territory. For
11		purposes of this subsection (c), the amount paid per
12		kilowatthour means the total amount paid for electric
13		service expressed on a per kilowatthour basis. For
14		purposes of this subsection (c), the total amount paid for
15		electric service includes without limitation amounts paid
16		for supply, transmission, capacity, distribution,
17		surcharges, and add-on taxes.
18		Notwithstanding the requirements of this subsection
19		(c), the total of renewable energy resources procured
20		under the procurement plan for any single year shall be
21		subject to the limitations of this subparagraph (E). Such
22		procurement shall be reduced for all retail customers
23		based on the amount necessary to limit the annual
24		estimated average net increase due to the costs of these
25		resources included in the amounts paid by eligible retail
26		customers in connection with electric service to no more

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1		than 4.25% of the amount paid per kilowatthour by those
2		customers during the year ending May 31, 2009. To arrive
3		at a maximum dollar amount of renewable energy resources
4		to be procured for the particular delivery year, the
5		resulting per kilowatthour amount shall be applied to the
6		actual amount of kilowatthours of electricity delivered,
7		or applicable portion of such amount as specified in
8		paragraph (1) of this subsection (c), as applicable, by
9		the electric utility in the delivery year immediately
10		prior to the procurement to all retail customers in its
11		service territory. The calculations required by this
12		subparagraph (E) shall be made only once for each delivery
13		year at the time that the renewable energy resources are
14		procured. Once the determination as to the amount of
15		renewable energy resources to procure is made based on the
16		calculations set forth in this subparagraph (E) and the
17		contracts procuring those amounts are executed, no
18		subsequent rate impact determinations shall be made and no
19		adjustments to those contract amounts shall be allowed.
20		All costs incurred under such contracts shall be fully
21		recoverable by the electric utility as provided in this
22		Section.
23		(F) If the limitation on the amount of renewable
24		energy resources procured in subparagraph (E) of this
25		paragraph (1) prevents the Agency from meeting all of the
26		goals in this subsection (c), the Agency's long-term plan

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1		shall prioritize compliance with the requirements of this
2		subsection (c) regarding renewable energy credits in the
3		following order:
4		(i) renewable energy credits under existing
5		contractual obligations as of June 1, 2021;
6		(i-5) funding for the Illinois Solar for All
7		Program, as described in subparagraph (O) of this
8		paragraph (1);
9		(ii) renewable energy credits necessary to comply
10		with the new wind and new photovoltaic procurement
11		requirements described in items (i) through (iii) of
12		subparagraph (C) of this paragraph (1); and
13		(iii) renewable energy credits necessary to meet
14		the remaining requirements of this subsection (c).
15		(G) The following provisions shall apply to the
16		Agency's procurement of renewable energy credits under
17		this subsection (c):
18		(i) Notwithstanding whether a long-term renewable
19		resources procurement plan has been approved, the
20		Agency shall conduct an initial forward procurement
21		for renewable energy credits from new utility-scale
22		wind projects within 160 days after June 1, 2017 (the
23		effective date of Public Act 99-906). For the purposes
24		of this initial forward procurement, the Agency shall
25		solicit 15-year contracts for delivery of 1,000,000
26		renewable energy credits delivered annually from new

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

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1		2019, if available, but not later than June 1, 2021,
2		unless the project has delays in the establishment of
3		an operating interconnection with the applicable
4		transmission or distribution system as a result of the
5		actions or inactions of the transmission or
6		distribution provider, or other causes for force
7		majeure as outlined in the procurement contract, in
8		which case, not later than June 1, 2022. The Agency may
9		structure this initial procurement in one or more
10		discrete procurement events. Payments to suppliers of
11		renewable energy credits shall commence upon delivery.
12		Renewable energy credits procured under this initial
13		procurement shall be included in the Agency's
14		long-term plan and shall apply to all renewable energy
15		goals in this subsection (c).
16		(iii) Notwithstanding whether the Commission has
17		approved the periodic long-term renewable resources
18		procurement plan revision described in Section
19		16-111.5 of the Public Utilities Act, the Agency shall
20		conduct at least one subsequent forward procurement
21		for renewable energy credits from new utility-scale
22		wind projects, new utility-scale solar projects, and
23		new brownfield site photovoltaic projects within 240
24		days after the effective date of this amendatory Act
25		of the 102nd General Assembly in quantities necessary
26		to meet the requirements of subparagraph (C) of this

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1		paragraph (1) through the delivery year beginning June
2		1, 2021.
3		(iv) Notwithstanding whether the Commission has
4		approved the periodic long-term renewable resources
5		procurement plan revision described in Section
6		16-111.5 of the Public Utilities Act, the Agency shall
7		open capacity for each category in the Adjustable
8		Block program within 90 days after the effective date
9		of this amendatory Act of the 102nd General Assembly
10		manner:
11		(1) The Agency shall open the first block of
12		annual capacity for the category described in item
13		(i) of subparagraph (K) of this paragraph (1). The
14		first block of annual capacity for item (i) shall
15		be for at least 75 megawatts of total nameplate
16		capacity. The price of the renewable energy credit
17		for this block of capacity shall be 4% less than
18		the price of the last open block in this category.
19		Projects on a waitlist shall be awarded contracts
20		first in the order in which they appear on the
21		waitlist. Notwithstanding anything to the
22		contrary, for those renewable energy credits that
23		qualify and are procured under this subitem (1) of
24		this item (iv), the renewable energy credit
25		delivery contract value shall be paid in full,
26		based on the estimated generation during the first

HB3445 Engrossed - 21 - LRB103 29599 AMQ 55994 b
1		15 years of operation, by the contracting
2		utilities at the time that the facility producing
3		the renewable energy credits is interconnected at
4		the distribution system level of the utility and
5		verified as energized and in compliance by the
6		Program Administrator. The electric utility shall
7		receive and retire all renewable energy credits
8		generated by the project for the first 15 years of
9		operation. Renewable energy credits generated by
10		the project thereafter shall not be transferred
11		under the renewable energy credit delivery
12		contract with the counterparty electric utility.
13		(2) The Agency shall open the first block of
14		annual capacity for the category described in item
15		(ii) of subparagraph (K) of this paragraph (1).
16		The first block of annual capacity for item (ii)
17		shall be for at least 75 megawatts of total
18		nameplate capacity.
19		(A) The price of the renewable energy
20		credit for any project on a waitlist for this
21		category before the opening of this block
22		shall be 4% less than the price of the last
23		open block in this category. Projects on the
24		waitlist shall be awarded contracts first in
25		the order in which they appear on the
26		waitlist. Any projects that are less than or

HB3445 Engrossed - 22 - LRB103 29599 AMQ 55994 b
1		equal to 25 kilowatts in size on the waitlist
2		for this capacity shall be moved to the
3		waitlist for paragraph (1) of this item (iv).
4		Notwithstanding anything to the contrary,
5		projects that were on the waitlist prior to
6		opening of this block shall not be required to
7		be in compliance with the requirements of
8		subparagraph (Q) of this paragraph (1) of this
9		subsection (c). Notwithstanding anything to
10		the contrary, for those renewable energy
11		credits procured from projects that were on
12		the waitlist for this category before the
13		opening of this block 20% of the renewable
14		energy credit delivery contract value, based
15		on the estimated generation during the first
16		15 years of operation, shall be paid by the
17		contracting utilities at the time that the
18		facility producing the renewable energy
19		credits is interconnected at the distribution
20		system level of the utility and verified as
21		energized by the Program Administrator. The
22		remaining portion shall be paid ratably over
23		the subsequent 4-year period. The electric
24		utility shall receive and retire all renewable
25		energy credits generated by the project during
26		the first 15 years of operation. Renewable

HB3445 Engrossed - 23 - LRB103 29599 AMQ 55994 b
1		energy credits generated by the project
2		thereafter shall not be transferred under the
3		renewable energy credit delivery contract with
4		the counterparty electric utility.
5		(B) The price of renewable energy credits
6		for any project not on the waitlist for this
7		category before the opening of the block shall
8		be determined and published by the Agency.
9		Projects not on a waitlist as of the opening
10		of this block shall be subject to the
11		requirements of subparagraph (Q) of this
12		paragraph (1), as applicable. Projects not on
13		a waitlist as of the opening of this block
14		shall be subject to the contract provisions
15		outlined in item (iii) of subparagraph (L) of
16		this paragraph (1). The Agency shall strive to
17		publish updated prices and an updated
18		renewable energy credit delivery contract as
19		quickly as possible.
20		(3) For opening the first 2 blocks of annual
21		capacity for projects participating in item (iii)
22		of subparagraph (K) of paragraph (1) of subsection
23		(c), projects shall be selected exclusively from
24		those projects on the ordinal waitlists of
25		community renewable generation projects
26		established by the Agency based on the status of

HB3445 Engrossed - 24 - LRB103 29599 AMQ 55994 b
1		those ordinal waitlists as of December 31, 2020,
2		and only those projects previously determined to
3		be eligible for the Agency's April 2019 community
4		solar project selection process.
5		The first 2 blocks of annual capacity for item
6		(iii) shall be for 250 megawatts of total
7		nameplate capacity, with both blocks opening
8		simultaneously under the schedule outlined in the
9		paragraphs below. Projects shall be selected as
10		follows:
11		(A) The geographic balance of selected
12		projects shall follow the Group classification
13		found in the Agency's Revised Long-Term
14		Renewable Resources Procurement Plan, with 70%
15		of capacity allocated to projects on the Group
16		B waitlist and 30% of capacity allocated to
17		projects on the Group A waitlist.
18		(B) Contract awards for waitlisted
19		projects shall be allocated proportionate to
20		the total nameplate capacity amount across
21		both ordinal waitlists associated with that
22		applicant firm or its affiliates, subject to
23		the following conditions.
24		(i) Each applicant firm having a
25		waitlisted project eligible for selection
26		shall receive no less than 500 kilowatts

HB3445 Engrossed - 25 - LRB103 29599 AMQ 55994 b
1		in awarded capacity across all groups, and
2		no approved vendor may receive more than
3		20% of each Group's waitlist allocation.
4		(ii) Each applicant firm, upon
5		receiving an award of program capacity
6		proportionate to its waitlisted capacity,
7		may then determine which waitlisted
8		projects it chooses to be selected for a
9		contract award up to that capacity amount.
10		(iii) Assuming all other program
11		requirements are met, applicant firms may
12		adjust the nameplate capacity of applicant
13		projects without losing waitlist
14		eligibility, so long as no project is
15		greater than 2,000 kilowatts in size.
16		(iv) Assuming all other program
17		requirements are met, applicant firms may
18		adjust the expected production associated
19		with applicant projects, subject to
20		verification by the Program Administrator.
21		(C) After a review of affiliate
22		information and the current ordinal waitlists,
23		the Agency shall announce the nameplate
24		capacity award amounts associated with
25		applicant firms no later than 90 days after
26		the effective date of this amendatory Act of

HB3445 Engrossed - 26 - LRB103 29599 AMQ 55994 b
1		the 102nd General Assembly.
2		(D) Applicant firms shall submit their
3		portfolio of projects used to satisfy those
4		contract awards no less than 90 days after the
5		Agency's announcement. The total nameplate
6		capacity of all projects used to satisfy that
7		portfolio shall be no greater than the
8		Agency's nameplate capacity award amount
9		associated with that applicant firm. An
10		applicant firm may decline, in whole or in
11		part, its nameplate capacity award without
12		penalty, with such unmet capacity rolled over
13		to the next block opening for project
14		selection under item (iii) of subparagraph (K)
15		of this subsection (c). Any projects not
16		included in an applicant firm's portfolio may
17		reapply without prejudice upon the next block
18		reopening for project selection under item
19		(iii) of subparagraph (K) of this subsection
20		(c).
21		(E) The renewable energy credit delivery
22		contract shall be subject to the contract and
23		payment terms outlined in item (iv) of
24		subparagraph (L) of this subsection (c).
25		Contract instruments used for this
26		subparagraph shall contain the following

HB3445 Engrossed - 27 - LRB103 29599 AMQ 55994 b
1		terms:
2		(i) Renewable energy credit prices
3		shall be fixed, without further adjustment
4		under any other provision of this Act or
5		for any other reason, at 10% lower than
6		prices applicable to the last open block
7		for this category, inclusive of any adders
8		available for achieving a minimum of 50%
9		of subscribers to the project's nameplate
10		capacity being residential or small
11		commercial customers with subscriptions of
12		below 25 kilowatts in size;
13		(ii) A requirement that a minimum of
14		50% of subscribers to the project's
15		nameplate capacity be residential or small
16		commercial customers with subscriptions of
17		below 25 kilowatts in size;
18		(iii) Permission for the ability of a
19		contract holder to substitute projects
20		with other waitlisted projects without
21		penalty should a project receive a
22		non-binding estimate of costs to construct
23		the interconnection facilities and any
24		required distribution upgrades associated
25		with that project of greater than 30 cents
26		per watt AC of that project's nameplate

HB3445 Engrossed - 28 - LRB103 29599 AMQ 55994 b
1		capacity. In developing the applicable
2		contract instrument, the Agency may
3		consider whether other circumstances
4		outside of the control of the applicant
5		firm should also warrant project
6		substitution rights.
7		The Agency shall publish a finalized
8		updated renewable energy credit delivery
9		contract developed consistent with these terms
10		and conditions no less than 30 days before
11		applicant firms must submit their portfolio of
12		projects pursuant to item (D).
13		(F) To be eligible for an award, the
14		applicant firm shall certify that not less
15		than prevailing wage, as determined pursuant
16		to the Illinois Prevailing Wage Act, was or
17		will be paid to employees who are engaged in
18		construction activities associated with a
19		selected project.
20		(4) The Agency shall open the first block of
21		annual capacity for the category described in item
22		(iv) of subparagraph (K) of this paragraph (1).
23		The first block of annual capacity for item (iv)
24		shall be for at least 50 megawatts of total
25		nameplate capacity. Renewable energy credit prices
26		shall be fixed, without further adjustment under

HB3445 Engrossed - 29 - LRB103 29599 AMQ 55994 b
1		any other provision of this Act or for any other
2		reason, at the price in the last open block in the
3		category described in item (ii) of subparagraph
4		(K) of this paragraph (1). Pricing for future
5		blocks of annual capacity for this category may be
6		adjusted in the Agency's second revision to its
7		Long-Term Renewable Resources Procurement Plan.
8		Projects in this category shall be subject to the
9		contract terms outlined in item (iv) of
10		subparagraph (L) of this paragraph (1).
11		(5) The Agency shall open the equivalent of 2
12		years of annual capacity for the category
13		described in item (v) of subparagraph (K) of this
14		paragraph (1). The first block of annual capacity
15		for item (v) shall be for at least 10 megawatts of
16		total nameplate capacity. Notwithstanding the
17		provisions of item (v) of subparagraph (K) of this
18		paragraph (1), for the purpose of this initial
19		block, the agency shall accept new project
20		applications intended to increase the diversity of
21		areas hosting community solar projects, the
22		business models of projects, and the size of
23		projects, as described by the Agency in its
24		long-term renewable resources procurement plan
25		that is approved as of the effective date of this
26		amendatory Act of the 102nd General Assembly.

HB3445 Engrossed - 30 - LRB103 29599 AMQ 55994 b
1		Projects in this category shall be subject to the
2		contract terms outlined in item (iii) of
3		subsection (L) of this paragraph (1).
4		(6) The Agency shall open the first blocks of
5		annual capacity for the category described in item
6		(vi) of subparagraph (K) of this paragraph (1),
7		with allocations of capacity within the block
8		generally matching the historical share of block
9		capacity allocated between the category described
10		in items (i) and (ii) of subparagraph (K) of this
11		paragraph (1). The first two blocks of annual
12		capacity for item (vi) shall be for at least 75
13		megawatts of total nameplate capacity. The price
14		of renewable energy credits for the blocks of
15		capacity shall be 4% less than the price of the
16		last open blocks in the categories described in
17		items (i) and (ii) of subparagraph (K) of this
18		paragraph (1). Pricing for future blocks of annual
19		capacity for this category may be adjusted in the
20		Agency's second revision to its Long-Term
21		Renewable Resources Procurement Plan. Projects in
22		this category shall be subject to the applicable
23		contract terms outlined in items (ii) and (iii) of
24		subparagraph (L) of this paragraph (1).
25		(v) Upon the effective date of this amendatory Act
26		of the 102nd General Assembly, for all competitive

HB3445 Engrossed - 31 - LRB103 29599 AMQ 55994 b
1		procurements and any procurements of renewable energy
2		credit from new utility-scale wind and new
3		utility-scale photovoltaic projects, the Agency shall
4		procure indexed renewable energy credits and direct
5		respondents to offer a strike price.
6		(1) The purchase price of the indexed
7		renewable energy credit payment shall be
8		calculated for each settlement period. That
9		payment, for any settlement period, shall be equal
10		to the difference resulting from subtracting the
11		strike price from the index price for that
12		settlement period. If this difference results in a
13		negative number, the indexed REC counterparty
14		shall owe the seller the absolute value multiplied
15		by the quantity of energy produced in the relevant
16		settlement period. If this difference results in a
17		positive number, the seller shall owe the indexed
18		REC counterparty this amount multiplied by the
19		quantity of energy produced in the relevant
20		settlement period.
21		(2) Parties shall cash settle every month,
22		summing up all settlements (both positive and
23		negative, if applicable) for the prior month.
24		(3) To ensure funding in the annual budget
25		established under subparagraph (E) for indexed
26		renewable energy credit procurements for each year

HB3445 Engrossed - 32 - LRB103 29599 AMQ 55994 b
1		of the term of such contracts, which must have a
2		minimum tenure of 20 calendar years, the
3		procurement administrator, Agency, Commission
4		staff, and procurement monitor shall quantify the
5		annual cost of the contract by utilizing an
6		industry-standard, third-party forward price curve
7		for energy at the appropriate hub or load zone,
8		including the estimated magnitude and timing of
9		the price effects related to federal carbon
10		controls. Each forward price curve shall contain a
11		specific value of the forecasted market price of
12		electricity for each annual delivery year of the
13		contract. For procurement planning purposes, the
14		impact on the annual budget for the cost of
15		indexed renewable energy credits for each delivery
16		year shall be determined as the expected annual
17		contract expenditure for that year, equaling the
18		difference between (i) the sum across all relevant
19		contracts of the applicable strike price
20		multiplied by contract quantity and (ii) the sum
21		across all relevant contracts of the forward price
22		curve for the applicable load zone for that year
23		multiplied by contract quantity. The contracting
24		utility shall not assume an obligation in excess
25		of the estimated annual cost of the contracts for
26		indexed renewable energy credits. Forward curves

HB3445 Engrossed - 33 - LRB103 29599 AMQ 55994 b
1		shall be revised on an annual basis as updated
2		forward price curves are released and filed with
3		the Commission in the proceeding approving the
4		Agency's most recent long-term renewable resources
5		procurement plan. If the expected contract spend
6		is higher or lower than the total quantity of
7		contracts multiplied by the forward price curve
8		value for that year, the forward price curve shall
9		be updated by the procurement administrator, in
10		consultation with the Agency, Commission staff,
11		and procurement monitors, using then-currently
12		available price forecast data and additional
13		budget dollars shall be obligated or reobligated
14		as appropriate.
15		(4) To ensure that indexed renewable energy
16		credit prices remain predictable and affordable,
17		the Agency may consider the institution of a price
18		collar on REC prices paid under indexed renewable
19		energy credit procurements establishing floor and
20		ceiling REC prices applicable to indexed REC
21		contract prices. Any price collars applicable to
22		indexed REC procurements shall be proposed by the
23		Agency through its long-term renewable resources
24		procurement plan.
25		(vi) All procurements under this subparagraph (G)
26		shall comply with the geographic requirements in

HB3445 Engrossed - 34 - LRB103 29599 AMQ 55994 b
1		subparagraph (I) of this paragraph (1) and shall
2		follow the procurement processes and procedures
3		described in this Section and Section 16-111.5 of the
4		Public Utilities Act to the extent practicable, and
5		these processes and procedures may be expedited to
6		accommodate the schedule established by this
7		subparagraph (G).
8		(H) The procurement of renewable energy resources for
9		a given delivery year shall be reduced as described in
10		this subparagraph (H) if an alternative retail electric
11		supplier meets the requirements described in this
12		subparagraph (H).
13		(i) Within 45 days after June 1, 2017 (the
14		effective date of Public Act 99-906), an alternative
15		retail electric supplier or its successor shall submit
16		an informational filing to the Illinois Commerce
17		Commission certifying that, as of December 31, 2015,
18		the alternative retail electric supplier owned one or
19		more electric generating facilities that generates
20		renewable energy resources as defined in Section 1-10
21		of this Act, provided that such facilities are not
22		powered by wind or photovoltaics, and the facilities
23		generate one renewable energy credit for each
24		megawatthour of energy produced from the facility.
25		The informational filing shall identify each
26		facility that was eligible to satisfy the alternative

HB3445 Engrossed - 35 - LRB103 29599 AMQ 55994 b
1		retail electric supplier's obligations under Section
2		16-115D of the Public Utilities Act as described in
3		this item (i).
4		(ii) For a given delivery year, the alternative
5		retail electric supplier may elect to supply its
6		retail customers with renewable energy credits from
7		the facility or facilities described in item (i) of
8		this subparagraph (H) that continue to be owned by the
9		alternative retail electric supplier.
10		(iii) The alternative retail electric supplier
11		shall notify the Agency and the applicable utility, no
12		later than February 28 of the year preceding the
13		applicable delivery year or 15 days after June 1, 2017
14		(the effective date of Public Act 99-906), whichever
15		is later, of its election under item (ii) of this
16		subparagraph (H) to supply renewable energy credits to
17		retail customers of the utility. Such election shall
18		identify the amount of renewable energy credits to be
19		supplied by the alternative retail electric supplier
20		to the utility's retail customers and the source of
21		the renewable energy credits identified in the
22		informational filing as described in item (i) of this
23		subparagraph (H), subject to the following
24		limitations:
25		For the delivery year beginning June 1, 2018,
26		the maximum amount of renewable energy credits to

HB3445 Engrossed - 36 - LRB103 29599 AMQ 55994 b
1		be supplied by an alternative retail electric
2		supplier under this subparagraph (H) shall be 68%
3		multiplied by 25% multiplied by 14.5% multiplied
4		by the amount of metered electricity
5		(megawatt-hours) delivered by the alternative
6		retail electric supplier to Illinois retail
7		customers during the delivery year ending May 31,
8		2016.
9		For delivery years beginning June 1, 2019 and
10		each year thereafter, the maximum amount of
11		renewable energy credits to be supplied by an
12		alternative retail electric supplier under this
13		subparagraph (H) shall be 68% multiplied by 50%
14		multiplied by 16% multiplied by the amount of
15		metered electricity (megawatt-hours) delivered by
16		the alternative retail electric supplier to
17		Illinois retail customers during the delivery year
18		ending May 31, 2016, provided that the 16% value
19		shall increase by 1.5% each delivery year
20		thereafter to 25% by the delivery year beginning
21		June 1, 2025, and thereafter the 25% value shall
22		apply to each delivery year.
23		For each delivery year, the total amount of
24		renewable energy credits supplied by all alternative
25		retail electric suppliers under this subparagraph (H)
26		shall not exceed 9% of the Illinois target renewable

HB3445 Engrossed - 37 - LRB103 29599 AMQ 55994 b
1		energy credit quantity. The Illinois target renewable
2		energy credit quantity for the delivery year beginning
3		June 1, 2018 is 14.5% multiplied by the total amount of
4		metered electricity (megawatt-hours) delivered in the
5		delivery year immediately preceding that delivery
6		year, provided that the 14.5% shall increase by 1.5%
7		each delivery year thereafter to 25% by the delivery
8		year beginning June 1, 2025, and thereafter the 25%
9		value shall apply to each delivery year.
10		If the requirements set forth in items (i) through
11		(iii) of this subparagraph (H) are met, the charges
12		that would otherwise be applicable to the retail
13		customers of the alternative retail electric supplier
14		under paragraph (6) of this subsection (c) for the
15		applicable delivery year shall be reduced by the ratio
16		of the quantity of renewable energy credits supplied
17		by the alternative retail electric supplier compared
18		to that supplier's target renewable energy credit
19		quantity. The supplier's target renewable energy
20		credit quantity for the delivery year beginning June
21		1, 2018 is 14.5% multiplied by the total amount of
22		metered electricity (megawatt-hours) delivered by the
23		alternative retail supplier in that delivery year,
24		provided that the 14.5% shall increase by 1.5% each
25		delivery year thereafter to 25% by the delivery year
26		beginning June 1, 2025, and thereafter the 25% value

HB3445 Engrossed - 38 - LRB103 29599 AMQ 55994 b
1		shall apply to each delivery year.
2		On or before April 1 of each year, the Agency shall
3		annually publish a report on its website that
4		identifies the aggregate amount of renewable energy
5		credits supplied by alternative retail electric
6		suppliers under this subparagraph (H).
7		(I) The Agency shall design its long-term renewable
8		energy procurement plan to maximize the State's interest
9		in the health, safety, and welfare of its residents,
10		including but not limited to minimizing sulfur dioxide,
11		nitrogen oxide, particulate matter and other pollution
12		that adversely affects public health in this State,
13		increasing fuel and resource diversity in this State,
14		enhancing the reliability and resiliency of the
15		electricity distribution system in this State, meeting
16		goals to limit carbon dioxide emissions under federal or
17		State law, and contributing to a cleaner and healthier
18		environment for the citizens of this State. In order to
19		further these legislative purposes, renewable energy
20		credits shall be eligible to be counted toward the
21		renewable energy requirements of this subsection (c) if
22		they are generated from facilities located in this State.
23		The Agency may qualify renewable energy credits from
24		facilities located in states adjacent to Illinois or
25		renewable energy credits associated with the electricity
26		generated by a utility-scale wind energy facility or

HB3445 Engrossed - 39 - LRB103 29599 AMQ 55994 b
1		utility-scale photovoltaic facility and transmitted by a
2		qualifying direct current project described in subsection
3		(b-5) of Section 8-406 of the Public Utilities Act to a
4		delivery point on the electric transmission grid located
5		in this State or a state adjacent to Illinois, if the
6		generator demonstrates and the Agency determines that the
7		operation of such facility or facilities will help promote
8		the State's interest in the health, safety, and welfare of
9		its residents based on the public interest criteria
10		described above. For the purposes of this Section,
11		renewable resources that are delivered via a high voltage
12		direct current converter station located in Illinois shall
13		be deemed generated in Illinois at the time and location
14		the energy is converted to alternating current by the high
15		voltage direct current converter station if the high
16		voltage direct current transmission line: (i) after the
17		effective date of this amendatory Act of the 102nd General
18		Assembly, was constructed with a project labor agreement;
19		(ii) is capable of transmitting electricity at 525kv;
20		(iii) has an Illinois converter station located and
21		interconnected in the region of the PJM Interconnection,
22		LLC; (iv) does not operate as a public utility; and (v) if
23		the high voltage direct current transmission line was
24		energized after June 1, 2023. To ensure that the public
25		interest criteria are applied to the procurement and given
26		full effect, the Agency's long-term procurement plan shall

HB3445 Engrossed - 40 - LRB103 29599 AMQ 55994 b
1		describe in detail how each public interest factor shall
2		be considered and weighted for facilities located in
3		states adjacent to Illinois.
4		(J) In order to promote the competitive development of
5		renewable energy resources in furtherance of the State's
6		interest in the health, safety, and welfare of its
7		residents, renewable energy credits shall not be eligible
8		to be counted toward the renewable energy requirements of
9		this subsection (c) if they are sourced from a generating
10		unit whose costs were being recovered through rates
11		regulated by this State or any other state or states on or
12		after January 1, 2017. Each contract executed to purchase
13		renewable energy credits under this subsection (c) shall
14		provide for the contract's termination if the costs of the
15		generating unit supplying the renewable energy credits
16		subsequently begin to be recovered through rates regulated
17		by this State or any other state or states; and each
18		contract shall further provide that, in that event, the
19		supplier of the credits must return 110% of all payments
20		received under the contract. Amounts returned under the
21		requirements of this subparagraph (J) shall be retained by
22		the utility and all of these amounts shall be used for the
23		procurement of additional renewable energy credits from
24		new wind or new photovoltaic resources as defined in this
25		subsection (c). The long-term plan shall provide that
26		these renewable energy credits shall be procured in the

HB3445 Engrossed - 41 - LRB103 29599 AMQ 55994 b
1		next procurement event.
2		Notwithstanding the limitations of this subparagraph
3		(J), renewable energy credits sourced from generating
4		units that are constructed, purchased, owned, or leased by
5		an electric utility as part of an approved project,
6		program, or pilot under Section 1-56 of this Act shall be
7		eligible to be counted toward the renewable energy
8		requirements of this subsection (c), regardless of how the
9		costs of these units are recovered. As long as a
10		generating unit or an identifiable portion of a generating
11		unit has not had and does not have its costs recovered
12		through rates regulated by this State or any other state,
13		HVDC renewable energy credits associated with that
14		generating unit or identifiable portion thereof shall be
15		eligible to be counted toward the renewable energy
16		requirements of this subsection (c).
17		(K) The long-term renewable resources procurement plan
18		developed by the Agency in accordance with subparagraph
19		(A) of this paragraph (1) shall include an Adjustable
20		Block program for the procurement of renewable energy
21		credits from new photovoltaic projects that are
22		distributed renewable energy generation devices or new
23		photovoltaic community renewable generation projects. The
24		Adjustable Block program shall be generally designed to
25		provide for the steady, predictable, and sustainable
26		growth of new solar photovoltaic development in Illinois.

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

HB3445 Engrossed - 43 - LRB103 29599 AMQ 55994 b
1		that enter the program are sufficiently mature to indicate
2		a demonstrable path to completion. The Agency may
3		periodically review its prior decisions establishing the
4		amount of generation capacity in each block, and the
5		purchase price for each block, and may propose, on an
6		expedited basis, changes to these previously set values,
7		including but not limited to redistributing these amounts
8		and the available funds as necessary and appropriate,
9		subject to Commission approval as part of the periodic
10		plan revision process described in Section 16-111.5 of the
11		Public Utilities Act. The Agency may define different
12		block sizes, purchase prices, or other distinct terms and
13		conditions for projects located in different utility
14		service territories if the Agency deems it necessary to
15		meet the goals in this subsection (c).
16		The Adjustable Block program shall include the
17		following categories in at least the following amounts:
18		(i) At least 20% from distributed renewable energy
19		generation devices with a nameplate capacity of no
20		more than 25 kilowatts.
21		(ii) At least 20% from distributed renewable
22		energy generation devices with a nameplate capacity of
23		more than 25 kilowatts and no more than 5,000
24		kilowatts. The Agency may create sub-categories within
25		this category to account for the differences between
26		projects for small commercial customers, large

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1		commercial customers, and public or non-profit
2		customers.
3		(iii) At least 30% from photovoltaic community
4		renewable generation projects. Capacity for this
5		category for the first 2 delivery years after the
6		effective date of this amendatory Act of the 102nd
7		General Assembly shall be allocated to waitlist
8		projects as provided in paragraph (3) of item (iv) of
9		subparagraph (G). Starting in the third delivery year
10		after the effective date of this amendatory Act of the
11		102nd General Assembly or earlier if the Agency
12		determines there is additional capacity needed for to
13		meet previous delivery year requirements, the
14		following shall apply:
15		(1) the Agency shall select projects on a
16		first-come, first-serve basis, however the Agency
17		may suggest additional methods to prioritize
18		projects that are submitted at the same time;
19		(2) projects shall have subscriptions of 25 kW
20		or less for at least 50% of the facility's
21		nameplate capacity and the Agency shall price the
22		renewable energy credits with that as a factor;
23		(3) projects shall not be colocated with one
24		or more other community renewable generation
25		projects, as defined in the Agency's first revised
26		long-term renewable resources procurement plan

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

HB3445 Engrossed - 46 - LRB103 29599 AMQ 55994 b
1		it feasible and affordable for public schools to
2		install photovoltaic distributed renewable energy
3		devices on their premises, including, but not limited
4		to, those public schools subject to the prioritization
5		provisions of this subparagraph. For the purposes of
6		this item (iv):
7		"Environmental Justice Community" shall have the
8		same meaning set forth in the Agency's long-term
9		renewable resources procurement plan;
10		"Organization Unit", "Tier 1" and "Tier 2" shall
11		have the meanings set for in Section 18-8.15 of the
12		School Code;
13		"Public schools" shall have the meaning set forth
14		in Section 1-3 of the School Code and includes public
15		institutions of higher education, as defined in the
16		Board of Higher Education Act.
17		(v) At least 5% from community-driven community
18		solar projects intended to provide more direct and
19		tangible connection and benefits to the communities
20		which they serve or in which they operate and,
21		additionally, to increase the variety of community
22		solar locations, models, and options in Illinois. As
23		part of its long-term renewable resources procurement
24		plan, the Agency shall develop selection criteria for
25		projects participating in this category. Nothing in
26		this Section shall preclude the Agency from creating a

HB3445 Engrossed - 47 - LRB103 29599 AMQ 55994 b
1		selection process that maximizes community ownership
2		and community benefits in selecting projects to
3		receive renewable energy credits. Selection criteria
4		shall include:
5		(1) community ownership or community
6		wealth-building;
7		(2) additional direct and indirect community
8		benefit, beyond project participation as a
9		subscriber, including, but not limited to,
10		economic, environmental, social, cultural, and
11		physical benefits;
12		(3) meaningful involvement in project
13		organization and development by community members
14		or nonprofit organizations or public entities
15		located in or serving the community;
16		(4) engagement in project operations and
17		management by nonprofit organizations, public
18		entities, or community members; and
19		(5) whether a project is developed in response
20		to a site-specific RFP developed by community
21		members or a nonprofit organization or public
22		entity located in or serving the community.
23		Selection criteria may also prioritize projects
24		that:
25		(1) are developed in collaboration with or to
26		provide complementary opportunities for the Clean

HB3445 Engrossed - 48 - LRB103 29599 AMQ 55994 b
1		Jobs Workforce Network Program, the Illinois
2		Climate Works Preapprenticeship Program, the
3		Returning Residents Clean Jobs Training Program,
4		the Clean Energy Contractor Incubator Program, or
5		the Clean Energy Primes Contractor Accelerator
6		Program;
7		(2) increase the diversity of locations of
8		community solar projects in Illinois, including by
9		locating in urban areas and population centers;
10		(3) are located in Equity Investment Eligible
11		Communities;
12		(4) are not greenfield projects;
13		(5) serve only local subscribers;
14		(6) have a nameplate capacity that does not
15		exceed 500 kW;
16		(7) are developed by an equity eligible
17		contractor; or
18		(8) otherwise meaningfully advance the goals
19		of providing more direct and tangible connection
20		and benefits to the communities which they serve
21		or in which they operate and increasing the
22		variety of community solar locations, models, and
23		options in Illinois.
24		For the purposes of this item (v):
25		"Community" means a social unit in which people
26		come together regularly to effect change; a social

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1		unit in which participants are marked by a cooperative
2		spirit, a common purpose, or shared interests or
3		characteristics; or a space understood by its
4		residents to be delineated through geographic
5		boundaries or landmarks.
6		"Community benefit" means a range of services and
7		activities that provide affirmative, economic,
8		environmental, social, cultural, or physical value to
9		a community; or a mechanism that enables economic
10		development, high-quality employment, and education
11		opportunities for local workers and residents, or
12		formal monitoring and oversight structures such that
13		community members may ensure that those services and
14		activities respond to local knowledge and needs.
15		"Community ownership" means an arrangement in
16		which an electric generating facility is, or over time
17		will be, in significant part, owned collectively by
18		members of the community to which an electric
19		generating facility provides benefits; members of that
20		community participate in decisions regarding the
21		governance, operation, maintenance, and upgrades of
22		and to that facility; and members of that community
23		benefit from regular use of that facility.
24		Terms and guidance within these criteria that are
25		not defined in this item (v) shall be defined by the
26		Agency, with stakeholder input, during the development

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

HB3445 Engrossed - 51 - LRB103 29599 AMQ 55994 b
1		advanced prior to project energization shall be
2		sufficient to both cover any increase in development
3		costs resulting from prevailing wage requirements or
4		project-labor agreements, and designed to overcome
5		barriers in access to capital faced by equity eligible
6		contractors. The amount or percentage of advanced
7		capital may vary by subcategory within this category
8		and by an applicant's demonstration of need, with such
9		levels to be established through the Long-Term
10		Renewable Resources Procurement Plan authorized under
11		subparagraph (A) of paragraph (1) of subsection (c) of
12		this Section.
13		Contracts developed featuring capital advanced
14		prior to a project's energization shall feature
15		provisions to ensure both the successful development
16		of applicant projects and the delivery of the
17		renewable energy credits for the full term of the
18		contract, including ongoing collateral requirements
19		and other provisions deemed necessary by the Agency,
20		and may include energization timelines longer than for
21		comparable project types. The percentage or amount of
22		capital advanced prior to project energization shall
23		not operate to increase the overall contract value,
24		however contracts executed under this subparagraph may
25		feature renewable energy credit prices higher than
26		those offered to similar projects participating in

HB3445 Engrossed - 52 - LRB103 29599 AMQ 55994 b
1		other categories. Capital advanced prior to
2		energization shall serve to reduce the ratable
3		payments made after energization under items (ii) and
4		(iii) of subparagraph (L) or payments made for each
5		renewable energy credit delivery under item (iv) of
6		subparagraph (L).
7		(vii) The remaining capacity shall be allocated by
8		the Agency in order to respond to market demand. The
9		Agency shall allocate any discretionary capacity prior
10		to the beginning of each delivery year.
11		To the extent there is uncontracted capacity from any
12		block in any of categories (i) through (vi) at the end of a
13		delivery year, the Agency shall redistribute that capacity
14		to one or more other categories giving priority to
15		categories with projects on a waitlist. The redistributed
16		capacity shall be added to the annual capacity in the
17		subsequent delivery year, and the price for renewable
18		energy credits shall be the price for the new delivery
19		year. Redistributed capacity shall not be considered
20		redistributed when determining whether the goals in this
21		subsection (K) have been met.
22		Notwithstanding anything to the contrary, as the
23		Agency increases the capacity in item (vi) to 40% over
24		time, the Agency may reduce the capacity of items (i)
25		through (v) proportionate to the capacity of the
26		categories of projects in item (vi), to achieve a balance

HB3445 Engrossed - 53 - LRB103 29599 AMQ 55994 b
1		of project types.
2		The Adjustable Block program shall be designed to
3		ensure that renewable energy credits are procured from
4		projects in diverse locations and are not concentrated in
5		a few regional areas.
6		(L) Notwithstanding provisions for advancing capital
7		prior to project energization found in item (vi) of
8		subparagraph (K), the procurement of photovoltaic
9		renewable energy credits under items (i) through (vi) of
10		subparagraph (K) of this paragraph (1) shall otherwise be
11		subject to the following contract and payment terms:
12		(i) (Blank).
13		(ii) For those renewable energy credits that
14		qualify and are procured under item (i) of
15		subparagraph (K) of this paragraph (1), and any
16		similar category projects that are procured under item
17		(vi) of subparagraph (K) of this paragraph (1) that
18		qualify and are procured under item (vi), the contract
19		length shall be 15 years. The renewable energy credit
20		delivery contract value shall be paid in full, based
21		on the estimated generation during the first 15 years
22		of operation, by the contracting utilities at the time
23		that the facility producing the renewable energy
24		credits is interconnected at the distribution system
25		level of the utility and verified as energized and
26		compliant by the Program Administrator. The electric

HB3445 Engrossed - 54 - LRB103 29599 AMQ 55994 b
1		utility shall receive and retire all renewable energy
2		credits generated by the project for the first 15
3		years of operation. Renewable energy credits generated
4		by the project thereafter shall not be transferred
5		under the renewable energy credit delivery contract
6		with the counterparty electric utility.
7		(iii) For those renewable energy credits that
8		qualify and are procured under item (ii) and (v) of
9		subparagraph (K) of this paragraph (1) and any like
10		projects similar category that qualify and are
11		procured under item (vi), the contract length shall be
12		15 years. 15% of the renewable energy credit delivery
13		contract value, based on the estimated generation
14		during the first 15 years of operation, shall be paid
15		by the contracting utilities at the time that the
16		facility producing the renewable energy credits is
17		interconnected at the distribution system level of the
18		utility and verified as energized and compliant by the
19		Program Administrator. The remaining portion shall be
20		paid ratably over the subsequent 6-year period. The
21		electric utility shall receive and retire all
22		renewable energy credits generated by the project for
23		the first 15 years of operation. Renewable energy
24		credits generated by the project thereafter shall not
25		be transferred under the renewable energy credit
26		delivery contract with the counterparty electric

HB3445 Engrossed - 55 - LRB103 29599 AMQ 55994 b
1		utility.
2		(iv) For those renewable energy credits that
3		qualify and are procured under items (iii) and (iv) of
4		subparagraph (K) of this paragraph (1), and any like
5		projects that qualify and are procured under item
6		(vi), the renewable energy credit delivery contract
7		length shall be 20 years and shall be paid over the
8		delivery term, not to exceed during each delivery year
9		the contract price multiplied by the estimated annual
10		renewable energy credit generation amount. If
11		generation of renewable energy credits during a
12		delivery year exceeds the estimated annual generation
13		amount, the excess renewable energy credits shall be
14		carried forward to future delivery years and shall not
15		expire during the delivery term. If generation of
16		renewable energy credits during a delivery year,
17		including carried forward excess renewable energy
18		credits, if any, is less than the estimated annual
19		generation amount, payments during such delivery year
20		will not exceed the quantity generated plus the
21		quantity carried forward multiplied by the contract
22		price. The electric utility shall receive all
23		renewable energy credits generated by the project
24		during the first 20 years of operation and retire all
25		renewable energy credits paid for under this item (iv)
26		and return at the end of the delivery term all

HB3445 Engrossed - 56 - LRB103 29599 AMQ 55994 b
1		renewable energy credits that were not paid for.
2		Renewable energy credits generated by the project
3		thereafter shall not be transferred under the
4		renewable energy credit delivery contract with the
5		counterparty electric utility. Notwithstanding the
6		preceding, for those projects participating under item
7		(iii) of subparagraph (K), the contract price for a
8		delivery year shall be based on subscription levels as
9		measured on the higher of the first business day of the
10		delivery year or the first business day 6 months after
11		the first business day of the delivery year.
12		Subscription of 90% of nameplate capacity or greater
13		shall be deemed to be fully subscribed for the
14		purposes of this item (iv). For projects receiving a
15		20-year delivery contract, REC prices shall be
16		adjusted downward for consistency with the incentive
17		levels previously determined to be necessary to
18		support projects under 15-year delivery contracts,
19		taking into consideration any additional new
20		requirements placed on the projects, including, but
21		not limited to, labor standards.
22		(v) Each contract shall include provisions to
23		ensure the delivery of the estimated quantity of
24		renewable energy credits and ongoing collateral
25		requirements and other provisions deemed appropriate
26		by the Agency.

HB3445 Engrossed - 57 - LRB103 29599 AMQ 55994 b
1		(vi) The utility shall be the counterparty to the
2		contracts executed under this subparagraph (L) that
3		are approved by the Commission under the process
4		described in Section 16-111.5 of the Public Utilities
5		Act. No contract shall be executed for an amount that
6		is less than one renewable energy credit per year.
7		(vii) If, at any time, approved applications for
8		the Adjustable Block program exceed funds collected by
9		the electric utility or would cause the Agency to
10		exceed the limitation described in subparagraph (E) of
11		this paragraph (1) on the amount of renewable energy
12		resources that may be procured, then the Agency may
13		consider future uncommitted funds to be reserved for
14		these contracts on a first-come, first-served basis.
15		(viii) Nothing in this Section shall require the
16		utility to advance any payment or pay any amounts that
17		exceed the actual amount of revenues anticipated to be
18		collected by the utility under paragraph (6) of this
19		subsection (c) and subsection (k) of Section 16-108 of
20		the Public Utilities Act inclusive of eligible funds
21		collected in prior years and alternative compliance
22		payments for use by the utility, and contracts
23		executed under this Section shall expressly
24		incorporate this limitation.
25		(ix) Notwithstanding other requirements of this
26		subparagraph (L), no modification shall be required to

HB3445 Engrossed - 58 - LRB103 29599 AMQ 55994 b
1		Adjustable Block program contracts if they were
2		already executed prior to the establishment, approval,
3		and implementation of new contract forms as a result
4		of this amendatory Act of the 102nd General Assembly.
5		(x) Contracts may be assignable, but only to
6		entities first deemed by the Agency to have met
7		program terms and requirements applicable to direct
8		program participation. In developing contracts for the
9		delivery of renewable energy credits, the Agency shall
10		be permitted to establish fees applicable to each
11		contract assignment.
12		(M) The Agency shall be authorized to retain one or
13		more experts or expert consulting firms to develop,
14		administer, implement, operate, and evaluate the
15		Adjustable Block program described in subparagraph (K) of
16		this paragraph (1), and the Agency shall retain the
17		consultant or consultants in the same manner, to the
18		extent practicable, as the Agency retains others to
19		administer provisions of this Act, including, but not
20		limited to, the procurement administrator. The selection
21		of experts and expert consulting firms and the procurement
22		process described in this subparagraph (M) are exempt from
23		the requirements of Section 20-10 of the Illinois
24		Procurement Code, under Section 20-10 of that Code. The
25		Agency shall strive to minimize administrative expenses in
26		the implementation of the Adjustable Block program.

HB3445 Engrossed - 59 - LRB103 29599 AMQ 55994 b
1		The Program Administrator may charge application fees
2		to participating firms to cover the cost of program
3		administration. Any application fee amounts shall
4		initially be determined through the long-term renewable
5		resources procurement plan, and modifications to any
6		application fee that deviate more than 25% from the
7		Commission's approved value must be approved by the
8		Commission as a long-term plan revision under Section
9		16-111.5 of the Public Utilities Act. The Agency shall
10		consider stakeholder feedback when making adjustments to
11		application fees and shall notify stakeholders in advance
12		of any planned changes.
13		In addition to covering the costs of program
14		administration, the Agency, in conjunction with its
15		Program Administrator, may also use the proceeds of such
16		fees charged to participating firms to support public
17		education and ongoing regional and national coordination
18		with nonprofit organizations, public bodies, and others
19		engaged in the implementation of renewable energy
20		incentive programs or similar initiatives. This work may
21		include developing papers and reports, hosting regional
22		and national conferences, and other work deemed necessary
23		by the Agency to position the State of Illinois as a
24		national leader in renewable energy incentive program
25		development and administration.
26		The Agency and its consultant or consultants shall

HB3445 Engrossed - 60 - LRB103 29599 AMQ 55994 b
1		monitor block activity, share program activity with
2		stakeholders and conduct quarterly meetings to discuss
3		program activity and market conditions. If necessary, the
4		Agency may make prospective administrative adjustments to
5		the Adjustable Block program design, such as making
6		adjustments to purchase prices as necessary to achieve the
7		goals of this subsection (c). Program modifications to any
8		block price that do not deviate from the Commission's
9		approved value by more than 10% shall take effect
10		immediately and are not subject to Commission review and
11		approval. Program modifications to any block price that
12		deviate more than 10% from the Commission's approved value
13		must be approved by the Commission as a long-term plan
14		amendment under Section 16-111.5 of the Public Utilities
15		Act. The Agency shall consider stakeholder feedback when
16		making adjustments to the Adjustable Block design and
17		shall notify stakeholders in advance of any planned
18		changes.
19		The Agency and its program administrators for both the
20		Adjustable Block program and the Illinois Solar for All
21		Program, consistent with the requirements of this
22		subsection (c) and subsection (b) of Section 1-56 of this
23		Act, shall propose the Adjustable Block program terms,
24		conditions, and requirements, including the prices to be
25		paid for renewable energy credits, where applicable, and
26		requirements applicable to participating entities and

HB3445 Engrossed - 61 - LRB103 29599 AMQ 55994 b
1		project applications, through the development, review, and
2		approval of the Agency's long-term renewable resources
3		procurement plan described in this subsection (c) and
4		paragraph (5) of subsection (b) of Section 16-111.5 of the
5		Public Utilities Act. Terms, conditions, and requirements
6		for program participation shall include the following:
7		(i) The Agency shall establish a registration
8		process for entities seeking to qualify for
9		program-administered incentive funding and establish
10		baseline qualifications for vendor approval. The
11		Agency must maintain a list of approved entities on
12		each program's website, and may revoke a vendor's
13		ability to receive program-administered incentive
14		funding status upon a determination that the vendor
15		failed to comply with contract terms, the law, or
16		other program requirements.
17		(ii) The Agency shall establish program
18		requirements and minimum contract terms to ensure
19		projects are properly installed and produce their
20		expected amounts of energy. Program requirements may
21		include on-site inspections and photo documentation of
22		projects under construction. The Agency may require
23		repairs, alterations, or additions to remedy any
24		material deficiencies discovered. Vendors who have a
25		disproportionately high number of deficient systems
26		may lose their eligibility to continue to receive

HB3445 Engrossed - 62 - LRB103 29599 AMQ 55994 b
1		State-administered incentive funding through Agency
2		programs and procurements.
3		(iii) To discourage deceptive marketing or other
4		bad faith business practices, the Agency may require
5		direct program participants, including agents
6		operating on their behalf, to provide standardized
7		disclosures to a customer prior to that customer's
8		execution of a contract for the development of a
9		distributed generation system or a subscription to a
10		community solar project.
11		(iv) The Agency shall establish one or multiple
12		Consumer Complaints Centers to accept complaints
13		regarding businesses that participate in, or otherwise
14		benefit from, State-administered incentive funding
15		through Agency-administered programs. The Agency shall
16		maintain a public database of complaints with any
17		confidential or particularly sensitive information
18		redacted from public entries.
19		(v) Through a filing in the proceeding for the
20		approval of its long-term renewable energy resources
21		procurement plan, the Agency shall provide an annual
22		written report to the Illinois Commerce Commission
23		documenting the frequency and nature of complaints and
24		any enforcement actions taken in response to those
25		complaints.
26		(vi) The Agency shall schedule regular meetings

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

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1		"transferable" means that a subscriber may assign or sell
2		subscriptions to another person within the same utility
3		service territory.
4		Through the development of its long-term renewable
5		resources procurement plan, the Agency may consider
6		whether community renewable generation projects utilizing
7		technologies other than photovoltaics should be supported
8		through State-administered incentive funding, and may
9		issue requests for information to gauge market demand.
10		Electric utilities shall provide a monetary credit to
11		a subscriber's subsequent bill for service for the
12		proportional output of a community renewable generation
13		project attributable to that subscriber as specified in
14		Section 16-107.5 of the Public Utilities Act.
15		The Agency shall purchase renewable energy credits
16		from subscribed shares of photovoltaic community renewable
17		generation projects through the Adjustable Block program
18		described in subparagraph (K) of this paragraph (1) or
19		through the Illinois Solar for All Program described in
20		Section 1-56 of this Act. The electric utility shall
21		purchase any unsubscribed energy from community renewable
22		generation projects that are Qualifying Facilities ("QF")
23		under the electric utility's tariff for purchasing the
24		output from QFs under Public Utilities Regulatory Policies
25		Act of 1978.
26		The owners of and any subscribers to a community

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1		renewable generation project shall not be considered
2		public utilities or alternative retail electricity
3		suppliers under the Public Utilities Act solely as a
4		result of their interest in or subscription to a community
5		renewable generation project and shall not be required to
6		become an alternative retail electric supplier by
7		participating in a community renewable generation project
8		with a public utility.
9		(O) For the delivery year beginning June 1, 2018, the
10		long-term renewable resources procurement plan required by
11		this subsection (c) shall provide for the Agency to
12		procure contracts to continue offering the Illinois Solar
13		for All Program described in subsection (b) of Section
14		1-56 of this Act, and the contracts approved by the
15		Commission shall be executed by the utilities that are
16		subject to this subsection (c). The long-term renewable
17		resources procurement plan shall allocate up to
18		$50,000,000 per delivery year to fund the programs, and
19		the plan shall determine the amount of funding to be
20		apportioned to the programs identified in subsection (b)
21		of Section 1-56 of this Act; provided that for the
22		delivery years beginning June 1, 2021, June 1, 2022, and
23		June 1, 2023, the long-term renewable resources
24		procurement plan may average the annual budgets over a
25		3-year period to account for program ramp-up. For the
26		delivery years beginning June 1, 2021, June 1, 2024, June

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

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

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1		property that is both (1) used exclusively by a
2		religious society or body of persons as a place for
3		religious exercise or religious worship and (2)
4		recognized as exempt from taxation pursuant to Section
5		15-40 of the Property Tax Code. This item (1) shall
6		apply to any the following:
7		(i) all new utility-scale wind projects;
8		(ii) all new utility-scale photovoltaic
9		projects;
10		(iii) all new brownfield photovoltaic
11		projects;
12		(iv) all new photovoltaic community renewable
13		energy facilities that qualify for item (iii) of
14		subparagraph (K) of this paragraph (1);
15		(v) all new community driven community
16		photovoltaic projects that qualify for item (v) of
17		subparagraph (K) of this paragraph (1);
18		(vi) all new photovoltaic distributed
19		renewable energy generation devices on schools
20		that qualify for item (iv) of subparagraph (K) of
21		this paragraph (1);
22		(vii) all new photovoltaic distributed
23		renewable energy generation devices that (1)
24		qualify for item (i) of subparagraph (K) of this
25		paragraph (1); (2) are not projects that serve
26		single-family or multi-family residential

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1		buildings; and (3) are not houses of worship where
2		the aggregate capacity including collocated
3		projects would not exceed 100 kilowatts;
4		(viii) all new photovoltaic distributed
5		renewable energy generation devices that (1)
6		qualify for item (ii) of subparagraph (K) of this
7		paragraph (1); (2) are not projects that serve
8		single-family or multi-family residential
9		buildings; and (3) are not houses of worship where
10		the aggregate capacity including collocated
11		projects would not exceed 100 kilowatts.
12		(2) Renewable energy credits procured from new
13		utility-scale wind projects, new utility-scale solar
14		projects, and new brownfield solar projects pursuant
15		to Agency procurement events occurring after the
16		effective date of this amendatory Act of the 102nd
17		General Assembly must be from facilities built by
18		general contractors that must enter into a project
19		labor agreement, as defined by this Act, prior to
20		construction. The project labor agreement shall be
21		filed with the Director in accordance with procedures
22		established by the Agency through its long-term
23		renewable resources procurement plan. Any information
24		submitted to the Agency in this item (2) shall be
25		considered commercially sensitive information. At a
26		minimum, the project labor agreement must provide the

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

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1		portfolio standard compliance program for eligible
2		self-direct customers that purchase renewable energy
3		credits from utility-scale wind and solar projects through
4		long-term agreements for purchase of renewable energy
5		credits as described in this Section. Such long-term
6		agreements may include the purchase of energy or other
7		products on a physical or financial basis and may involve
8		an alternative retail electric supplier as defined in
9		Section 16-102 of the Public Utilities Act. This program
10		shall take effect in the delivery year commencing June 1,
11		2023.
12		(1) For the purposes of this subparagraph:
13		"Eligible self-direct customer" means any retail
14		customers of an electric utility that serves 3,000,000
15		or more retail customers in the State and whose total
16		highest 30-minute demand was more than 10,000
17		kilowatts, or any retail customers of an electric
18		utility that serves less than 3,000,000 retail
19		customers but more than 500,000 retail customers in
20		the State and whose total highest 15-minute demand was
21		more than 10,000 kilowatts.
22		"Retail customer" has the meaning set forth in
23		Section 16-102 of the Public Utilities Act and
24		multiple retail customer accounts under the same
25		corporate parent may aggregate their account demands
26		to meet the 10,000 kilowatt threshold. The criteria

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1		for determining whether this subparagraph is
2		applicable to a retail customer shall be based on the
3		12 consecutive billing periods prior to the start of
4		the year in which the application is filed.
5		(2) For renewable energy credits to count toward
6		the self-direct renewable portfolio standard
7		compliance program, they must:
8		(i) qualify as renewable energy credits as
9		defined in Section 1-10 of this Act;
10		(ii) be sourced from one or more renewable
11		energy generating facilities that comply with the
12		geographic requirements as set forth in
13		subparagraph (I) of paragraph (1) of subsection
14		(c) as interpreted through the Agency's long-term
15		renewable resources procurement plan, or, where
16		applicable, the geographic requirements that
17		governed utility-scale renewable energy credits at
18		the time the eligible self-direct customer entered
19		into the applicable renewable energy credit
20		purchase agreement;
21		(iii) be procured through long-term contracts
22		with term lengths of at least 10 years either
23		directly with the renewable energy generating
24		facility or through a bundled power purchase
25		agreement, a virtual power purchase agreement, an
26		agreement between the renewable generating

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1		facility, an alternative retail electric supplier,
2		and the customer, or such other structure as is
3		permissible under this subparagraph (R);
4		(iv) be equivalent in volume to at least 40%
5		of the eligible self-direct customer's usage,
6		determined annually by the eligible self-direct
7		customer's usage during the previous delivery
8		year, measured to the nearest megawatt-hour;
9		(v) be retired by or on behalf of the large
10		energy customer;
11		(vi) be sourced from new utility-scale wind
12		projects or new utility-scale solar projects; and
13		(vii) if the contracts for renewable energy
14		credits are entered into after the effective date
15		of this amendatory Act of the 102nd General
16		Assembly, the new utility-scale wind projects or
17		new utility-scale solar projects must comply with
18		the requirements established in subparagraphs (P)
19		and (Q) of paragraph (1) of this subsection (c)
20		and subsection (c-10).
21		(3) The self-direct renewable portfolio standard
22		compliance program shall be designed to allow eligible
23		self-direct customers to procure new renewable energy
24		credits from new utility-scale wind projects or new
25		utility-scale photovoltaic projects. The Agency shall
26		annually determine the amount of utility-scale

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

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1		Customers must provide the Agency with their most
2		recent electricity billing statements or other
3		information deemed necessary by the Agency to
4		demonstrate they are an eligible self-direct customer.
5		(4) The Commission shall approve a reduction in
6		the volumetric charges collected pursuant to Section
7		16-108 of the Public Utilities Act for approved
8		eligible self-direct customers equivalent to the
9		anticipated cost of renewable energy credit deliveries
10		under contracts for new utility-scale wind and new
11		utility-scale solar entered for each delivery year
12		after the large energy customer begins retiring
13		eligible new utility scale renewable energy credits
14		for self-compliance. The self-direct credit amount
15		shall be determined annually and is equal to the
16		estimated portion of the cost authorized by
17		subparagraph (E) of paragraph (1) of this subsection
18		(c) that supported the annual procurement of
19		utility-scale renewable energy credits in the prior
20		delivery year using a methodology described in the
21		long-term renewable resources procurement plan,
22		expressed on a per kilowatthour basis, and does not
23		include (i) costs associated with any contracts
24		entered into before the delivery year in which the
25		customer files the initial compliance report to be
26		eligible for participation in the self-direct program,

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1		and (ii) costs associated with procuring renewable
2		energy credits through existing and future contracts
3		through the Adjustable Block Program, subsection (c-5)
4		of this Section 1-75, and the Solar for All Program.
5		The Agency shall assist the Commission in determining
6		the current and future costs. The Agency must
7		determine the self-direct credit amount for new and
8		existing eligible self-direct customers and submit
9		this to the Commission in an annual compliance filing.
10		The Commission must approve the self-direct credit
11		amount by June 1, 2023 and June 1 of each delivery year
12		thereafter.
13		(5) Customers described in this subparagraph (R)
14		shall apply, on a form developed by the Agency, to the
15		Agency to be designated as a self-direct eligible
16		customer. Once the Agency determines that a
17		self-direct customer is eligible for participation in
18		the program, the self-direct customer will remain
19		eligible until the end of the term of the contract.
20		Thereafter, application may be made not less than 12
21		months before the filing date of the long-term
22		renewable resources procurement plan described in this
23		Act. At a minimum, such application shall contain the
24		following:
25		(i) the customer's certification that, at the
26		time of the customer's application, the customer

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1		qualifies to be a self-direct eligible customer,
2		including documents demonstrating that
3		qualification;
4		(ii) the customer's certification that the
5		customer has entered into or will enter into by
6		the beginning of the applicable procurement year,
7		one or more bilateral contracts for new wind
8		projects or new photovoltaic projects, including
9		supporting documentation;
10		(iii) certification that the contract or
11		contracts for new renewable energy resources are
12		long-term contracts with term lengths of at least
13		10 years, including supporting documentation;
14		(iv) certification of the quantities of
15		renewable energy credits that the customer will
16		purchase each year under such contract or
17		contracts, including supporting documentation;
18		(v) proof that the contract is sufficient to
19		produce renewable energy credits to be equivalent
20		in volume to at least 40% of the large energy
21		customer's usage from the previous delivery year,
22		measured to the nearest megawatt-hour; and
23		(vi) certification that the customer intends
24		to maintain the contract for the duration of the
25		length of the contract.
26		(6) If a customer receives the self-direct credit

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1		but fails to properly procure and retire renewable
2		energy credits as required under this subparagraph
3		(R), the Commission, on petition from the Agency and
4		after notice and hearing, may direct such customer's
5		utility to recover the cost of the wrongfully received
6		self-direct credits plus interest through an adder to
7		charges assessed pursuant to Section 16-108 of the
8		Public Utilities Act. Self-direct customers who
9		knowingly fail to properly procure and retire
10		renewable energy credits and do not notify the Agency
11		are ineligible for continued participation in the
12		self-direct renewable portfolio standard compliance
13		program.
14		(2) (Blank).
15		(3) (Blank).
16		(4) The electric utility shall retire all renewable
17		energy credits used to comply with the standard.
18		(5) Beginning with the 2010 delivery year and ending
19		June 1, 2017, an electric utility subject to this
20		subsection (c) shall apply the lesser of the maximum
21		alternative compliance payment rate or the most recent
22		estimated alternative compliance payment rate for its
23		service territory for the corresponding compliance period,
24		established pursuant to subsection (d) of Section 16-115D
25		of the Public Utilities Act to its retail customers that
26		take service pursuant to the electric utility's hourly

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1		pricing tariff or tariffs. The electric utility shall
2		retain all amounts collected as a result of the
3		application of the alternative compliance payment rate or
4		rates to such customers, and, beginning in 2011, the
5		utility shall include in the information provided under
6		item (1) of subsection (d) of Section 16-111.5 of the
7		Public Utilities Act the amounts collected under the
8		alternative compliance payment rate or rates for the prior
9		year ending May 31. Notwithstanding any limitation on the
10		procurement of renewable energy resources imposed by item
11		(2) of this subsection (c), the Agency shall increase its
12		spending on the purchase of renewable energy resources to
13		be procured by the electric utility for the next plan year
14		by an amount equal to the amounts collected by the utility
15		under the alternative compliance payment rate or rates in
16		the prior year ending May 31.
17		(6) The electric utility shall be entitled to recover
18		all of its costs associated with the procurement of
19		renewable energy credits under plans approved under this
20		Section and Section 16-111.5 of the Public Utilities Act.
21		These costs shall include associated reasonable expenses
22		for implementing the procurement programs, including, but
23		not limited to, the costs of administering and evaluating
24		the Adjustable Block program, through an automatic
25		adjustment clause tariff in accordance with subsection (k)
26		of Section 16-108 of the Public Utilities Act.

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1		(7) Renewable energy credits procured from new
2		photovoltaic projects or new distributed renewable energy
3		generation devices under this Section after June 1, 2017
4		(the effective date of Public Act 99-906) must be procured
5		from devices installed by a qualified person in compliance
6		with the requirements of Section 16-128A of the Public
7		Utilities Act and any rules or regulations adopted
8		thereunder.
9		In meeting the renewable energy requirements of this
10		subsection (c), to the extent feasible and consistent with
11		State and federal law, the renewable energy credit
12		procurements, Adjustable Block solar program, and
13		community renewable generation program shall provide
14		employment opportunities for all segments of the
15		population and workforce, including minority-owned and
16		female-owned business enterprises, and shall not,
17		consistent with State and federal law, discriminate based
18		on race or socioeconomic status.
19		(c-5) Procurement of renewable energy credits from new
20		renewable energy facilities installed at or adjacent to the
21		sites of electric generating facilities that burn or burned
22		coal as their primary fuel source.
23		(1) In addition to the procurement of renewable energy
24		credits pursuant to long-term renewable resources
25		procurement plans in accordance with subsection (c) of
26		this Section and Section 16-111.5 of the Public Utilities

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1		Act, the Agency shall conduct procurement events in
2		accordance with this subsection (c-5) for the procurement
3		by electric utilities that served more than 300,000 retail
4		customers in this State as of January 1, 2019 of renewable
5		energy credits from new renewable energy facilities to be
6		installed at or adjacent to the sites of electric
7		generating facilities that, as of January 1, 2016, burned
8		coal as their primary fuel source and meet the other
9		criteria specified in this subsection (c-5). For purposes
10		of this subsection (c-5), "new renewable energy facility"
11		means a new utility-scale solar project as defined in this
12		Section 1-75. The renewable energy credits procured
13		pursuant to this subsection (c-5) may be included or
14		counted for purposes of compliance with the amounts of
15		renewable energy credits required to be procured pursuant
16		to subsection (c) of this Section to the extent that there
17		are otherwise shortfalls in compliance with such
18		requirements. The procurement of renewable energy credits
19		by electric utilities pursuant to this subsection (c-5)
20		shall be funded solely by revenues collected from the Coal
21		to Solar and Energy Storage Initiative Charge provided for
22		in this subsection (c-5) and subsection (i-5) of Section
23		16-108 of the Public Utilities Act, shall not be funded by
24		revenues collected through any of the other funding
25		mechanisms provided for in subsection (c) of this Section,
26		and shall not be subject to the limitation imposed by

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1		subsection (c) on charges to retail customers for costs to
2		procure renewable energy resources pursuant to subsection
3		(c), and shall not be subject to any other requirements or
4		limitations of subsection (c).
5		(2) The Agency shall conduct 2 procurement events to
6		select owners of electric generating facilities meeting
7		the eligibility criteria specified in this subsection
8		(c-5) to enter into long-term contracts to sell renewable
9		energy credits to electric utilities serving more than
10		300,000 retail customers in this State as of January 1,
11		2019. The first procurement event shall be conducted no
12		later than March 31, 2022, unless the Agency elects to
13		delay it, until no later than May 1, 2022, due to its
14		overall volume of work, and shall be to select owners of
15		electric generating facilities located in this State and
16		south of federal Interstate Highway 80 that meet the
17		eligibility criteria specified in this subsection (c-5).
18		The second procurement event shall be conducted no sooner
19		than September 30, 2022 and no later than October 31, 2022
20		and shall be to select owners of electric generating
21		facilities located anywhere in this State that meet the
22		eligibility criteria specified in this subsection (c-5).
23		The Agency shall establish and announce a time period,
24		which shall begin no later than 30 days prior to the
25		scheduled date for the procurement event, during which
26		applicants may submit applications to be selected as

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1		suppliers of renewable energy credits pursuant to this
2		subsection (c-5). The eligibility criteria for selection
3		as a supplier of renewable energy credits pursuant to this
4		subsection (c-5) shall be as follows:
5		(A) The applicant owns an electric generating
6		facility located in this State that: (i) as of January
7		1, 2016, burned coal as its primary fuel to generate
8		electricity; and (ii) has, or had prior to retirement,
9		an electric generating capacity of at least 150
10		megawatts. The electric generating facility can be
11		either: (i) retired as of the date of the procurement
12		event; or (ii) still operating as of the date of the
13		procurement event.
14		(B) The applicant is not (i) an electric
15		cooperative as defined in Section 3-119 of the Public
16		Utilities Act, or (ii) an entity described in
17		subsection (b)(1) of Section 3-105 of the Public
18		Utilities Act, or an association or consortium of or
19		an entity owned by entities described in (i) or (ii);
20		and the coal-fueled electric generating facility was
21		at one time owned, in whole or in part, by a public
22		utility as defined in Section 3-105 of the Public
23		Utilities Act.
24		(C) If participating in the first procurement
25		event, the applicant proposes and commits to construct
26		and operate, at the site, and if necessary for

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1		sufficient space on property adjacent to the existing
2		property, at which the electric generating facility
3		identified in paragraph (A) is located: (i) a new
4		renewable energy facility of at least 20 megawatts but
5		no more than 100 megawatts of electric generating
6		capacity, and (ii) an energy storage facility having a
7		storage capacity equal to at least 2 megawatts and at
8		most 10 megawatts. If participating in the second
9		procurement event, the applicant proposes and commits
10		to construct and operate, at the site, and if
11		necessary for sufficient space on property adjacent to
12		the existing property, at which the electric
13		generating facility identified in paragraph (A) is
14		located: (i) a new renewable energy facility of at
15		least 5 megawatts but no more than 20 megawatts of
16		electric generating capacity, and (ii) an energy
17		storage facility having a storage capacity equal to at
18		least 0.5 megawatts and at most one megawatt.
19		(D) The applicant agrees that the new renewable
20		energy facility and the energy storage facility will
21		be constructed or installed by a qualified entity or
22		entities in compliance with the requirements of
23		subsection (g) of Section 16-128A of the Public
24		Utilities Act and any rules adopted thereunder.
25		(E) The applicant agrees that personnel operating
26		the new renewable energy facility and the energy

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1		storage facility will have the requisite skills,
2		knowledge, training, experience, and competence, which
3		may be demonstrated by completion or current
4		participation and ultimate completion by employees of
5		an accredited or otherwise recognized apprenticeship
6		program for the employee's particular craft, trade, or
7		skill, including through training and education
8		courses and opportunities offered by the owner to
9		employees of the coal-fueled electric generating
10		facility or by previous employment experience
11		performing the employee's particular work skill or
12		function.
13		(F) The applicant commits that not less than the
14		prevailing wage, as determined pursuant to the
15		Prevailing Wage Act, will be paid to the applicant's
16		employees engaged in construction activities
17		associated with the new renewable energy facility and
18		the new energy storage facility and to the employees
19		of applicant's contractors engaged in construction
20		activities associated with the new renewable energy
21		facility and the new energy storage facility, and
22		that, on or before the commercial operation date of
23		the new renewable energy facility, the applicant shall
24		file a report with the Agency certifying that the
25		requirements of this subparagraph (F) have been met.
26		(G) The applicant commits that if selected, it

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1		will negotiate a project labor agreement for the
2		construction of the new renewable energy facility and
3		associated energy storage facility that includes
4		provisions requiring the parties to the agreement to
5		work together to establish diversity threshold
6		requirements and to ensure best efforts to meet
7		diversity targets, improve diversity at the applicable
8		job site, create diverse apprenticeship opportunities,
9		and create opportunities to employ former coal-fired
10		power plant workers.
11		(H) The applicant commits to enter into a contract
12		or contracts for the applicable duration to provide
13		specified numbers of renewable energy credits each
14		year from the new renewable energy facility to
15		electric utilities that served more than 300,000
16		retail customers in this State as of January 1, 2019,
17		at a price of $30 per renewable energy credit. The
18		price per renewable energy credit shall be fixed at
19		$30 for the applicable duration and the renewable
20		energy credits shall not be indexed renewable energy
21		credits as provided for in item (v) of subparagraph
22		(G) of paragraph (1) of subsection (c) of Section 1-75
23		of this Act. The applicable duration of each contract
24		shall be 20 years, unless the applicant is physically
25		interconnected to the PJM Interconnection, LLC
26		transmission grid and had a generating capacity of at

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1		least 1,200 megawatts as of January 1, 2021, in which
2		case the applicable duration of the contract shall be
3		15 years.
4		(I) The applicant's application is certified by an
5		officer of the applicant and by an officer of the
6		applicant's ultimate parent company, if any.
7		(3) An applicant may submit applications to contract
8		to supply renewable energy credits from more than one new
9		renewable energy facility to be constructed at or adjacent
10		to one or more qualifying electric generating facilities
11		owned by the applicant. The Agency may select new
12		renewable energy facilities to be located at or adjacent
13		to the sites of more than one qualifying electric
14		generation facility owned by an applicant to contract with
15		electric utilities to supply renewable energy credits from
16		such facilities.
17		(4) The Agency shall assess fees to each applicant to
18		recover the Agency's costs incurred in receiving and
19		evaluating applications, conducting the procurement event,
20		developing contracts for sale, delivery and purchase of
21		renewable energy credits, and monitoring the
22		administration of such contracts, as provided for in this
23		subsection (c-5), including fees paid to a procurement
24		administrator retained by the Agency for one or more of
25		these purposes.
26		(5) The Agency shall select the applicants and the new

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1		renewable energy facilities to contract with electric
2		utilities to supply renewable energy credits in accordance
3		with this subsection (c-5). In the first procurement
4		event, the Agency shall select applicants and new
5		renewable energy facilities to supply renewable energy
6		credits, at a price of $30 per renewable energy credit,
7		aggregating to no less than 400,000 renewable energy
8		credits per year for the applicable duration, assuming
9		sufficient qualifying applications to supply, in the
10		aggregate, at least that amount of renewable energy
11		credits per year; and not more than 580,000 renewable
12		energy credits per year for the applicable duration. In
13		the second procurement event, the Agency shall select
14		applicants and new renewable energy facilities to supply
15		renewable energy credits, at a price of $30 per renewable
16		energy credit, aggregating to no more than 625,000
17		renewable energy credits per year less the amount of
18		renewable energy credits each year contracted for as a
19		result of the first procurement event, for the applicable
20		durations. The number of renewable energy credits to be
21		procured as specified in this paragraph (5) shall not be
22		reduced based on renewable energy credits procured in the
23		self-direct renewable energy credit compliance program
24		established pursuant to subparagraph (R) of paragraph (1)
25		of subsection (c) of Section 1-75.
26		(6) The obligation to purchase renewable energy

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1		credits from the applicants and their new renewable energy
2		facilities selected by the Agency shall be allocated to
3		the electric utilities based on their respective
4		percentages of kilowatthours delivered to delivery
5		services customers to the aggregate kilowatthour
6		deliveries by the electric utilities to delivery services
7		customers for the year ended December 31, 2021. In order
8		to achieve these allocation percentages between or among
9		the electric utilities, the Agency shall require each
10		applicant that is selected in the procurement event to
11		enter into a contract with each electric utility for the
12		sale and purchase of renewable energy credits from each
13		new renewable energy facility to be constructed and
14		operated by the applicant, with the sale and purchase
15		obligations under the contracts to aggregate to the total
16		number of renewable energy credits per year to be supplied
17		by the applicant from the new renewable energy facility.
18		(7) The Agency shall submit its proposed selection of
19		applicants, new renewable energy facilities to be
20		constructed, and renewable energy credit amounts for each
21		procurement event to the Commission for approval. The
22		Commission shall, within 2 business days after receipt of
23		the Agency's proposed selections, approve the proposed
24		selections if it determines that the applicants and the
25		new renewable energy facilities to be constructed meet the
26		selection criteria set forth in this subsection (c-5) and

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1		that the Agency seeks approval for contracts of applicable
2		durations aggregating to no more than the maximum amount
3		of renewable energy credits per year authorized by this
4		subsection (c-5) for the procurement event, at a price of
5		$30 per renewable energy credit.
6		(8) The Agency, in conjunction with its procurement
7		administrator if one is retained, the electric utilities,
8		and potential applicants for contracts to produce and
9		supply renewable energy credits pursuant to this
10		subsection (c-5), shall develop a standard form contract
11		for the sale, delivery and purchase of renewable energy
12		credits pursuant to this subsection (c-5). Each contract
13		resulting from the first procurement event shall allow for
14		a commercial operation date for the new renewable energy
15		facility of either June 1, 2023 or June 1, 2024, with such
16		dates subject to adjustment as provided in this paragraph.
17		Each contract resulting from the second procurement event
18		shall provide for a commercial operation date on June 1
19		next occurring up to 48 months after execution of the
20		contract. Each contract shall provide that the owner shall
21		receive payments for renewable energy credits for the
22		applicable durations beginning with the commercial
23		operation date of the new renewable energy facility. The
24		form contract shall provide for adjustments to the
25		commercial operation and payment start dates as needed due
26		to any delays in completing the procurement and

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1		contracting processes, in finalizing interconnection
2		agreements and installing interconnection facilities, and
3		in obtaining other necessary governmental permits and
4		approvals. The form contract shall be, to the maximum
5		extent possible, consistent with standard electric
6		industry contracts for sale, delivery, and purchase of
7		renewable energy credits while taking into account the
8		specific requirements of this subsection (c-5). The form
9		contract shall provide for over-delivery and
10		under-delivery of renewable energy credits within
11		reasonable ranges during each 12-month period and penalty,
12		default, and enforcement provisions for failure of the
13		selling party to deliver renewable energy credits as
14		specified in the contract and to comply with the
15		requirements of this subsection (c-5). The standard form
16		contract shall specify that all renewable energy credits
17		delivered to the electric utility pursuant to the contract
18		shall be retired. The Agency shall make the proposed
19		contracts available for a reasonable period for comment by
20		potential applicants, and shall publish the final form
21		contract at least 30 days before the date of the first
22		procurement event.
23		(9) Coal to Solar and Energy Storage Initiative
24		Charge.
25		(A) By no later than July 1, 2022, each electric
26		utility that served more than 300,000 retail customers

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1		in this State as of January 1, 2019 shall file a tariff
2		with the Commission for the billing and collection of
3		a Coal to Solar and Energy Storage Initiative Charge
4		in accordance with subsection (i-5) of Section 16-108
5		of the Public Utilities Act, with such tariff to be
6		effective, following review and approval or
7		modification by the Commission, beginning January 1,
8		2023. The tariff shall provide for the calculation and
9		setting of the electric utility's Coal to Solar and
10		Energy Storage Initiative Charge to collect revenues
11		estimated to be sufficient, in the aggregate, (i) to
12		enable the electric utility to pay for the renewable
13		energy credits it has contracted to purchase in the
14		delivery year beginning June 1, 2023 and each delivery
15		year thereafter from new renewable energy facilities
16		located at the sites of qualifying electric generating
17		facilities, and (ii) to fund the grant payments to be
18		made in each delivery year by the Department of
19		Commerce and Economic Opportunity, or any successor
20		department or agency, which shall be referred to in
21		this subsection (c-5) as the Department, pursuant to
22		paragraph (10) of this subsection (c-5). The electric
23		utility's tariff shall provide for the billing and
24		collection of the Coal to Solar and Energy Storage
25		Initiative Charge on each kilowatthour of electricity
26		delivered to its delivery services customers within

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

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1		storage facilities at the sites of qualifying electric
2		generating facilities meeting the criteria specified
3		in this paragraph (10).
4		(B) The Coal to Solar and Energy Storage
5		Initiative Fund shall not be subject to sweeps,
6		administrative charges, or chargebacks, including, but
7		not limited to, those authorized under Section 8h of
8		the State Finance Act, that would in any way result in
9		the transfer of those funds from the Coal to Solar and
10		Energy Storage Initiative Fund to any other fund of
11		this State or in having any such funds utilized for any
12		purpose other than the express purposes set forth in
13		this paragraph (10).
14		(C) The Department shall utilize up to
15		$280,500,000 in the Coal to Solar and Energy Storage
16		Initiative Fund for grants, assuming sufficient
17		qualifying applicants, to support installation of
18		energy storage facilities at the sites of up to 3
19		qualifying electric generating facilities located in
20		the Midcontinent Independent System Operator, Inc.,
21		region in Illinois and the sites of up to 2 qualifying
22		electric generating facilities located in the PJM
23		Interconnection, LLC region in Illinois that meet the
24		criteria set forth in this subparagraph (C). The
25		criteria for receipt of a grant pursuant to this
26		subparagraph (C) are as follows:

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1		(1) the electric generating facility at the
2		site has, or had prior to retirement, an electric
3		generating capacity of at least 150 megawatts;
4		(2) the electric generating facility burns (or
5		burned prior to retirement) coal as its primary
6		source of fuel;
7		(3) if the electric generating facility is
8		retired, it was retired subsequent to January 1,
9		2016;
10		(4) the owner of the electric generating
11		facility has not been selected by the Agency
12		pursuant to this subsection (c-5) of this Section
13		to enter into a contract to sell renewable energy
14		credits to one or more electric utilities from a
15		new renewable energy facility located or to be
16		located at or adjacent to the site at which the
17		electric generating facility is located;
18		(5) the electric generating facility located
19		at the site was at one time owned, in whole or in
20		part, by a public utility as defined in Section
21		3-105 of the Public Utilities Act;
22		(6) the electric generating facility at the
23		site is not owned by (i) an electric cooperative
24		as defined in Section 3-119 of the Public
25		Utilities Act, or (ii) an entity described in
26		subsection (b)(1) of Section 3-105 of the Public

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1		Utilities Act, or an association or consortium of
2		or an entity owned by entities described in items
3		(i) or (ii);
4		(7) the proposed energy storage facility at
5		the site will have energy storage capacity of at
6		least 37 megawatts;
7		(8) the owner commits to place the energy
8		storage facility into commercial operation on
9		either June 1, 2023, June 1, 2024, or June 1, 2025,
10		with such date subject to adjustment as needed due
11		to any delays in completing the grant contracting
12		process, in finalizing interconnection agreements
13		and in installing interconnection facilities, and
14		in obtaining necessary governmental permits and
15		approvals;
16		(9) the owner agrees that the new energy
17		storage facility will be constructed or installed
18		by a qualified entity or entities consistent with
19		the requirements of subsection (g) of Section
20		16-128A of the Public Utilities Act and any rules
21		adopted under that Section;
22		(10) the owner agrees that personnel operating
23		the energy storage facility will have the
24		requisite skills, knowledge, training, experience,
25		and competence, which may be demonstrated by
26		completion or current participation and ultimate

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1		completion by employees of an accredited or
2		otherwise recognized apprenticeship program for
3		the employee's particular craft, trade, or skill,
4		including through training and education courses
5		and opportunities offered by the owner to
6		employees of the coal-fueled electric generating
7		facility or by previous employment experience
8		performing the employee's particular work skill or
9		function;
10		(11) the owner commits that not less than the
11		prevailing wage, as determined pursuant to the
12		Prevailing Wage Act, will be paid to the owner's
13		employees engaged in construction activities
14		associated with the new energy storage facility
15		and to the employees of the owner's contractors
16		engaged in construction activities associated with
17		the new energy storage facility, and that, on or
18		before the commercial operation date of the new
19		energy storage facility, the owner shall file a
20		report with the Department certifying that the
21		requirements of this subparagraph (11) have been
22		met; and
23		(12) the owner commits that if selected to
24		receive a grant, it will negotiate a project labor
25		agreement for the construction of the new energy
26		storage facility that includes provisions

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1		requiring the parties to the agreement to work
2		together to establish diversity threshold
3		requirements and to ensure best efforts to meet
4		diversity targets, improve diversity at the
5		applicable job site, create diverse apprenticeship
6		opportunities, and create opportunities to employ
7		former coal-fired power plant workers.
8		The Department shall accept applications for this
9		grant program until March 31, 2022 and shall announce
10		the award of grants no later than June 1, 2022. The
11		Department shall make the grant payments to a
12		recipient in equal annual amounts for 10 years
13		following the date the energy storage facility is
14		placed into commercial operation. The annual grant
15		payments to a qualifying energy storage facility shall
16		be $110,000 per megawatt of energy storage capacity,
17		with total annual grant payments pursuant to this
18		subparagraph (C) for qualifying energy storage
19		facilities not to exceed $28,050,000 in any year.
20		(D) Grants of funding for energy storage
21		facilities pursuant to subparagraph (C) of this
22		paragraph (10), from the Coal to Solar and Energy
23		Storage Initiative Fund, shall be memorialized in
24		grant contracts between the Department and the
25		recipient. The grant contracts shall specify the date
26		or dates in each year on which the annual grant

HB3445 Engrossed - 99 - LRB103 29599 AMQ 55994 b
1		payments shall be paid.
2		(E) All disbursements from the Coal to Solar and
3		Energy Storage Initiative Fund shall be made only upon
4		warrants of the Comptroller drawn upon the Treasurer
5		as custodian of the Fund upon vouchers signed by the
6		Director of the Department or by the person or persons
7		designated by the Director of the Department for that
8		purpose. The Comptroller is authorized to draw the
9		warrants upon vouchers so signed. The Treasurer shall
10		accept all written warrants so signed and shall be
11		released from liability for all payments made on those
12		warrants.
13		(11) Diversity, equity, and inclusion plans.
14		(A) Each applicant selected in a procurement event
15		to contract to supply renewable energy credits in
16		accordance with this subsection (c-5) and each owner
17		selected by the Department to receive a grant or
18		grants to support the construction and operation of a
19		new energy storage facility or facilities in
20		accordance with this subsection (c-5) shall, within 60
21		days following the Commission's approval of the
22		applicant to contract to supply renewable energy
23		credits or within 60 days following execution of a
24		grant contract with the Department, as applicable,
25		submit to the Commission a diversity, equity, and
26		inclusion plan setting forth the applicant's or

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1		owner's numeric goals for the diversity composition of
2		its supplier entities for the new renewable energy
3		facility or new energy storage facility, as
4		applicable, which shall be referred to for purposes of
5		this paragraph (11) as the project, and the
6		applicant's or owner's action plan and schedule for
7		achieving those goals.
8		(B) For purposes of this paragraph (11), diversity
9		composition shall be based on the percentage, which
10		shall be a minimum of 25%, of eligible expenditures
11		for contract awards for materials and services (which
12		shall be defined in the plan) to business enterprises
13		owned by minority persons, women, or persons with
14		disabilities as defined in Section 2 of the Business
15		Enterprise for Minorities, Women, and Persons with
16		Disabilities Act, to LGBTQ business enterprises, to
17		veteran-owned business enterprises, and to business
18		enterprises located in environmental justice
19		communities. The diversity composition goals of the
20		plan may include eligible expenditures in areas for
21		vendor or supplier opportunities in addition to
22		development and construction of the project, and may
23		exclude from eligible expenditures materials and
24		services with limited market availability, limited
25		production and availability from suppliers in the
26		United States, such as solar panels and storage

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1		batteries, and material and services that are subject
2		to critical energy infrastructure or cybersecurity
3		requirements or restrictions. The plan may provide
4		that the diversity composition goals may be met
5		through Tier 1 Direct or Tier 2 subcontracting
6		expenditures or a combination thereof for the project.
7		(C) The plan shall provide for, but not be limited
8		to: (i) internal initiatives, including multi-tier
9		initiatives, by the applicant or owner, or by its
10		engineering, procurement and construction contractor
11		if one is used for the project, which for purposes of
12		this paragraph (11) shall be referred to as the EPC
13		contractor, to enable diverse businesses to be
14		considered fairly for selection to provide materials
15		and services; (ii) requirements for the applicant or
16		owner or its EPC contractor to proactively solicit and
17		utilize diverse businesses to provide materials and
18		services; and (iii) requirements for the applicant or
19		owner or its EPC contractor to hire a diverse
20		workforce for the project. The plan shall include a
21		description of the applicant's or owner's diversity
22		recruiting efforts both for the project and for other
23		areas of the applicant's or owner's business
24		operations. The plan shall provide for the imposition
25		of financial penalties on the applicant's or owner's
26		EPC contractor for failure to exercise best efforts to

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1		comply with and execute the EPC contractor's diversity
2		obligations under the plan. The plan may provide for
3		the applicant or owner to set aside a portion of the
4		work on the project to serve as an incubation program
5		for qualified businesses, as specified in the plan,
6		owned by minority persons, women, persons with
7		disabilities, LGBTQ persons, and veterans, and
8		businesses located in environmental justice
9		communities, seeking to enter the renewable energy
10		industry.
11		(D) The applicant or owner may submit a revised or
12		updated plan to the Commission from time to time as
13		circumstances warrant. The applicant or owner shall
14		file annual reports with the Commission detailing the
15		applicant's or owner's progress in implementing its
16		plan and achieving its goals and any modifications the
17		applicant or owner has made to its plan to better
18		achieve its diversity, equity and inclusion goals. The
19		applicant or owner shall file a final report on the
20		fifth June 1 following the commercial operation date
21		of the new renewable energy resource or new energy
22		storage facility, but the applicant or owner shall
23		thereafter continue to be subject to applicable
24		reporting requirements of Section 5-117 of the Public
25		Utilities Act.
26		(c-10) Equity accountability system. It is the purpose of

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1		this subsection (c-10) to create an equity accountability
2		system, which includes the minimum equity standards for all
3		renewable energy procurements, the equity category of the
4		Adjustable Block Program, and the equity prioritization for
5		noncompetitive procurements, that is successful in advancing
6		priority access to the clean energy economy for businesses and
7		workers from communities that have been excluded from economic
8		opportunities in the energy sector, have been subject to
9		disproportionate levels of pollution, and have
10		disproportionately experienced negative public health
11		outcomes. Further, it is the purpose of this subsection to
12		ensure that this equity accountability system is successful in
13		advancing equity across Illinois by providing access to the
14		clean energy economy for businesses and workers from
15		communities that have been historically excluded from economic
16		opportunities in the energy sector, have been subject to
17		disproportionate levels of pollution, and have
18		disproportionately experienced negative public health
19		outcomes.
20		(1) Minimum equity standards. The Agency shall create
21		programs with the purpose of increasing access to and
22		development of equity eligible contractors, who are prime
23		contractors and subcontractors, across all of the programs
24		it manages. All applications for renewable energy credit
25		procurements shall comply with specific minimum equity
26		commitments. Starting in the delivery year immediately

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1		following the next long-term renewable resources
2		procurement plan, at least 10% of the project workforce
3		for each entity participating in a procurement program
4		outlined in this subsection (c-10) must be done by equity
5		eligible persons or equity eligible contractors. The
6		Agency shall increase the minimum percentage each delivery
7		year thereafter by increments that ensure a statewide
8		average of 30% of the project workforce for each entity
9		participating in a procurement program is done by equity
10		eligible persons or equity eligible contractors by 2030.
11		The Agency shall propose a schedule of percentage
12		increases to the minimum equity standards in its draft
13		revised renewable energy resources procurement plan
14		submitted to the Commission for approval pursuant to
15		paragraph (5) of subsection (b) of Section 16-111.5 of the
16		Public Utilities Act. In determining these annual
17		increases, the Agency shall have the discretion to
18		establish different minimum equity standards for different
19		types of procurements and different regions of the State
20		if the Agency finds that doing so will further the
21		purposes of this subsection (c-10). The proposed schedule
22		of annual increases shall be revisited and updated on an
23		annual basis. Revisions shall be developed with
24		stakeholder input, including from equity eligible persons,
25		equity eligible contractors, clean energy industry
26		representatives, and community-based organizations that

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1		work with such persons and contractors.
2		(A) At the start of each delivery year, the Agency
3		shall require a compliance plan from each entity
4		participating in a procurement program of subsection
5		(c) of this Section that demonstrates how they will
6		achieve compliance with the minimum equity standard
7		percentage for work completed in that delivery year.
8		If an entity applies for its approved vendor or
9		designee status between delivery years, the Agency
10		shall require a compliance plan at the time of
11		application.
12		(B) Halfway through each delivery year, the Agency
13		shall require each entity participating in a
14		procurement program to confirm that it will achieve
15		compliance in that delivery year, when applicable. The
16		Agency may offer corrective action plans to entities
17		that are not on track to achieve compliance.
18		(C) At the end of each delivery year, each entity
19		participating and completing work in that delivery
20		year in a procurement program of subsection (c) shall
21		submit a report to the Agency that demonstrates how it
22		achieved compliance with the minimum equity standards
23		percentage for that delivery year.
24		(D) The Agency shall prohibit participation in
25		procurement programs by an approved vendor or
26		designee, as applicable, or entities with which an

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1		approved vendor or designee, as applicable, shares a
2		common parent company if an approved vendor or
3		designee, as applicable, failed to meet the minimum
4		equity standards for the prior delivery year. Waivers
5		approved for lack of equity eligible persons or equity
6		eligible contractors in a geographic area of a project
7		shall not count against the approved vendor or
8		designee. The Agency shall offer a corrective action
9		plan for any such entities to assist them in obtaining
10		compliance and shall allow continued access to
11		procurement programs upon an approved vendor or
12		designee demonstrating compliance.
13		(E) The Agency shall pursue efficiencies achieved
14		by combining with other approved vendor or designee
15		reporting.
16		(2) Equity accountability system within the Adjustable
17		Block program. The equity category described in item (vi)
18		of subparagraph (K) of subsection (c) is only available to
19		applicants that are equity eligible contractors.
20		(3) Equity accountability system within competitive
21		procurements. Through its long-term renewable resources
22		procurement plan, the Agency shall develop requirements
23		for ensuring that competitive procurement processes,
24		including utility-scale solar, utility-scale wind, and
25		brownfield site photovoltaic projects, advance the equity
26		goals of this subsection (c-10). Subject to Commission

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1		approval, the Agency shall develop bid application
2		requirements and a bid evaluation methodology for ensuring
3		that utilization of equity eligible contractors, whether
4		as bidders or as participants on project development, is
5		optimized, including requiring that winning or successful
6		applicants for utility-scale projects are or will partner
7		with equity eligible contractors and giving preference to
8		bids through which a higher portion of contract value
9		flows to equity eligible contractors. To the extent
10		practicable, entities participating in competitive
11		procurements shall also be required to meet all the equity
12		accountability requirements for approved vendors and their
13		designees under this subsection (c-10). In developing
14		these requirements, the Agency shall also consider whether
15		equity goals can be further advanced through additional
16		measures.
17		(4) In the first revision to the long-term renewable
18		energy resources procurement plan and each revision
19		thereafter, the Agency shall include the following:
20		(A) The current status and number of equity
21		eligible contractors listed in the Energy Workforce
22		Equity Database designed in subsection (c-25),
23		including the number of equity eligible contractors
24		with current certifications as issued by the Agency.
25		(B) A mechanism for measuring, tracking, and
26		reporting project workforce at the approved vendor or

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1		designee level, as applicable, which shall include a
2		measurement methodology and records to be made
3		available for audit by the Agency or the Program
4		Administrator.
5		(C) A program for approved vendors, designees,
6		eligible persons, and equity eligible contractors to
7		receive trainings, guidance, and other support from
8		the Agency or its designee regarding the equity
9		category outlined in item (vi) of subparagraph (K) of
10		paragraph (1) of subsection (c) and in meeting the
11		minimum equity standards of this subsection (c-10).
12		(D) A process for certifying equity eligible
13		contractors and equity eligible persons. The
14		certification process shall coordinate with the Energy
15		Workforce Equity Database set forth in subsection
16		(c-25).
17		(E) An application for waiver of the minimum
18		equity standards of this subsection, which the Agency
19		shall have the discretion to grant in rare
20		circumstances. The Agency may grant such a waiver
21		where the applicant provides evidence of significant
22		efforts toward meeting the minimum equity commitment,
23		including: use of the Energy Workforce Equity
24		Database; efforts to hire or contract with entities
25		that hire eligible persons; and efforts to establish
26		contracting relationships with eligible contractors.

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1		The Agency shall support applicants in understanding
2		the Energy Workforce Equity Database and other
3		resources for pursuing compliance of the minimum
4		equity standards. Waivers shall be project-specific,
5		unless the Agency deems it necessary to grant a waiver
6		across a portfolio of projects, and in effect for no
7		longer than one year. Any waiver extension or
8		subsequent waiver request from an applicant shall be
9		subject to the requirements of this Section and shall
10		specify efforts made to reach compliance. When
11		considering whether to grant a waiver, and to what
12		extent, the Agency shall consider the degree to which
13		similarly situated applicants have been able to meet
14		these minimum equity commitments. For repeated waiver
15		requests for specific lack of eligible persons or
16		eligible contractors available, the Agency shall make
17		recommendations to target recruitment to add such
18		eligible persons or eligible contractors to the
19		database.
20		(5) The Agency shall collect information about work on
21		projects or portfolios of projects subject to these
22		minimum equity standards to ensure compliance with this
23		subsection (c-10). Reporting in furtherance of this
24		requirement may be combined with other annual reporting
25		requirements. Such reporting shall include proof of
26		certification of each equity eligible contractor or equity

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1		eligible person during the applicable time period.
2		(6) The Agency shall keep confidential all information
3		and communication that provides private or personal
4		information.
5		(7) Modifications to the equity accountability system.
6		As part of the update of the long-term renewable resources
7		procurement plan to be initiated in 2023, or sooner if the
8		Agency deems necessary, the Agency shall determine the
9		extent to which the equity accountability system described
10		in this subsection (c-10) has advanced the goals of this
11		amendatory Act of the 102nd General Assembly, including
12		through the inclusion of equity eligible persons and
13		equity eligible contractors in renewable energy credit
14		projects. If the Agency finds that the equity
15		accountability system has failed to meet those goals to
16		its fullest potential, the Agency may revise the following
17		criteria for future Agency procurements: (A) the
18		percentage of project workforce, or other appropriate
19		workforce measure, certified as equity eligible persons or
20		equity eligible contractors; (B) definitions for equity
21		investment eligible persons and equity investment eligible
22		community; and (C) such other modifications necessary to
23		advance the goals of this amendatory Act of the 102nd
24		General Assembly effectively. Such revised criteria may
25		also establish distinct equity accountability systems for
26		different types of procurements or different regions of

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1		the State if the Agency finds that doing so will further
2		the purposes of such programs. Revisions shall be
3		developed with stakeholder input, including from equity
4		eligible persons, equity eligible contractors, and
5		community-based organizations that work with such persons
6		and contractors.
7		(c-15) Racial discrimination elimination powers and
8		process.
9		(1) Purpose. It is the purpose of this subsection to
10		empower the Agency and other State actors to remedy racial
11		discrimination in Illinois' clean energy economy as
12		effectively and expediently as possible, including through
13		the use of race-conscious remedies, such as race-conscious
14		contracting and hiring goals, as consistent with State and
15		federal law.
16		(2) Racial disparity and discrimination review
17		process.
18		(A) Within one year after awarding contracts using
19		the equity actions processes established in this
20		Section, the Agency shall publish a report evaluating
21		the effectiveness of the equity actions point criteria
22		of this Section in increasing participation of equity
23		eligible persons and equity eligible contractors. The
24		report shall disaggregate participating workers and
25		contractors by race and ethnicity. The report shall be
26		forwarded to the Governor, the General Assembly, and

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1		the Illinois Commerce Commission and be made available
2		to the public.
3		(B) As soon as is practicable thereafter, the
4		Agency, in consultation with the Department of
5		Commerce and Economic Opportunity, Department of
6		Labor, and other agencies that may be relevant, shall
7		commission and publish a disparity and availability
8		study that measures the presence and impact of
9		discrimination on minority businesses and workers in
10		Illinois' clean energy economy. The Agency may hire
11		consultants and experts to conduct the disparity and
12		availability study, with the retention of those
13		consultants and experts exempt from the requirements
14		of Section 20-10 of the Illinois Procurement Code. The
15		Illinois Power Agency shall forward a copy of its
16		findings and recommendations to the Governor, the
17		General Assembly, and the Illinois Commerce
18		Commission. If the disparity and availability study
19		establishes a strong basis in evidence that there is
20		discrimination in Illinois' clean energy economy, the
21		Agency, Department of Commerce and Economic
22		Opportunity, Department of Labor, Department of
23		Corrections, and other appropriate agencies shall take
24		appropriate remedial actions, including race-conscious
25		remedial actions as consistent with State and federal
26		law, to effectively remedy this discrimination. Such

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1		remedies may include modification of the equity
2		accountability system as described in subsection
3		(c-10).
4		(c-20) Program data collection.
5		(1) Purpose. Data collection, data analysis, and
6		reporting are critical to ensure that the benefits of the
7		clean energy economy provided to Illinois residents and
8		businesses are equitably distributed across the State. The
9		Agency shall collect data from program applicants in order
10		to track and improve equitable distribution of benefits
11		across Illinois communities for all procurements the
12		Agency conducts. The Agency shall use this data to, among
13		other things, measure any potential impact of racial
14		discrimination on the distribution of benefits and provide
15		information necessary to correct any discrimination
16		through methods consistent with State and federal law.
17		(2) Agency collection of program data. The Agency
18		shall collect demographic and geographic data for each
19		entity awarded contracts under any Agency-administered
20		program.
21		(3) Required information to be collected. The Agency
22		shall collect the following information from applicants
23		and program participants where applicable:
24		(A) demographic information, including racial or
25		ethnic identity for real persons employed, contracted,
26		or subcontracted through the program and owners of

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1		businesses or entities that apply to receive renewable
2		energy credits from the Agency;
3		(B) geographic location of the residency of real
4		persons employed, contracted, or subcontracted through
5		the program and geographic location of the
6		headquarters of the business or entity that applies to
7		receive renewable energy credits from the Agency; and
8		(C) any other information the Agency determines is
9		necessary for the purpose of achieving the purpose of
10		this subsection.
11		(4) Publication of collected information. The Agency
12		shall publish, at least annually, information on the
13		demographics of program participants on an aggregate
14		basis.
15		(5) Nothing in this subsection shall be interpreted to
16		limit the authority of the Agency, or other agency or
17		department of the State, to require or collect demographic
18		information from applicants of other State programs.
19		(c-25) Energy Workforce Equity Database.
20		(1) The Agency, in consultation with the Department of
21		Commerce and Economic Opportunity, shall create an Energy
22		Workforce Equity Database, and may contract with a third
23		party to do so ("database program administrator"). If the
24		Department decides to contract with a third party, that
25		third party shall be exempt from the requirements of
26		Section 20-10 of the Illinois Procurement Code. The Energy

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1		Workforce Equity Database shall be a searchable database
2		of suppliers, vendors, and subcontractors for clean energy
3		industries that is:
4		(A) publicly accessible;
5		(B) easy for people to find and use;
6		(C) organized by company specialty or field;
7		(D) region-specific; and
8		(E) populated with information including, but not
9		limited to, contacts for suppliers, vendors, or
10		subcontractors who are minority and women-owned
11		business enterprise certified or who participate or
12		have participated in any of the programs described in
13		this Act.
14		(2) The Agency shall create an easily accessible,
15		public facing online tool using the database information
16		that includes, at a minimum, the following:
17		(A) a map of environmental justice and equity
18		investment eligible communities;
19		(B) job postings and recruiting opportunities;
20		(C) a means by which recruiting clean energy
21		companies can find and interact with current or former
22		participants of clean energy workforce training
23		programs;
24		(D) information on workforce training service
25		providers and training opportunities available to
26		prospective workers;

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1		(E) renewable energy company diversity reporting;
2		(F) a list of equity eligible contractors with
3		their contact information, types of work performed,
4		and locations worked in;
5		(G) reporting on outcomes of the programs
6		described in the workforce programs of the Energy
7		Transition Act, including information such as, but not
8		limited to, retention rate, graduation rate, and
9		placement rates of trainees; and
10		(H) information about the Jobs and Environmental
11		Justice Grant Program, the Clean Energy Jobs and
12		Justice Fund, and other sources of capital.
13		(3) The Agency shall ensure the database is regularly
14		updated to ensure information is current and shall
15		coordinate with the Department of Commerce and Economic
16		Opportunity to ensure that it includes information on
17		individuals and entities that are or have participated in
18		the Clean Jobs Workforce Network Program, Clean Energy
19		Contractor Incubator Program, Returning Residents Clean
20		Jobs Training Program, or Clean Energy Primes Contractor
21		Accelerator Program.
22		(c-30) Enforcement of minimum equity standards. All
23		entities seeking renewable energy credits must submit an
24		annual report to demonstrate compliance with each of the
25		equity commitments required under subsection (c-10). If the
26		Agency concludes the entity has not met or maintained its

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1		minimum equity standards required under the applicable
2		subparagraphs under subsection (c-10), the Agency shall deny
3		the entity's ability to participate in procurement programs in
4		subsection (c), including by withholding approved vendor or
5		designee status. The Agency may require the entity to enter
6		into a corrective action plan. An entity that is not
7		recertified for failing to meet required equity actions in
8		subparagraph (c-10) may reapply once they have a corrective
9		action plan and achieve compliance with the minimum equity
10		standards.
11		(d) Clean coal portfolio standard.
12		(1) The procurement plans shall include electricity
13		generated using clean coal. Each utility shall enter into
14		one or more sourcing agreements with the initial clean
15		coal facility, as provided in paragraph (3) of this
16		subsection (d), covering electricity generated by the
17		initial clean coal facility representing at least 5% of
18		each utility's total supply to serve the load of eligible
19		retail customers in 2015 and each year thereafter, as
20		described in paragraph (3) of this subsection (d), subject
21		to the limits specified in paragraph (2) of this
22		subsection (d). It is the goal of the State that by January
23		1, 2025, 25% of the electricity used in the State shall be
24		generated by cost-effective clean coal facilities. For
25		purposes of this subsection (d), "cost-effective" means
26		that the expenditures pursuant to such sourcing agreements

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

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

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1		year ending May 31, 2009;
2		(C) in 2012, the greater of an additional 0.5% of
3		the amount paid per kilowatthour by those customers
4		during the year ending May 31, 2011 or 1.5% of the
5		amount paid per kilowatthour by those customers during
6		the year ending May 31, 2009;
7		(D) in 2013, the greater of an additional 0.5% of
8		the amount paid per kilowatthour by those customers
9		during the year ending May 31, 2012 or 2% of the amount
10		paid per kilowatthour by those customers during the
11		year ending May 31, 2009; and
12		(E) thereafter, the total amount paid under
13		sourcing agreements with clean coal facilities
14		pursuant to the procurement plan for any single year
15		shall be reduced by an amount necessary to limit the
16		estimated average net increase due to the cost of
17		these resources included in the amounts paid by
18		eligible retail customers in connection with electric
19		service to no more than the greater of (i) 2.015% of
20		the amount paid per kilowatthour by those customers
21		during the year ending May 31, 2009 or (ii) the
22		incremental amount per kilowatthour paid for these
23		resources in 2013. These requirements may be altered
24		only as provided by statute.
25		No later than June 30, 2015, the Commission shall
26		review the limitation on the total amount paid under

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1		sourcing agreements, if any, with clean coal facilities
2		pursuant to this subsection (d) and report to the General
3		Assembly its findings as to whether that limitation unduly
4		constrains the amount of electricity generated by
5		cost-effective clean coal facilities that is covered by
6		sourcing agreements.
7		(3) Initial clean coal facility. In order to promote
8		development of clean coal facilities in Illinois, each
9		electric utility subject to this Section shall execute a
10		sourcing agreement to source electricity from a proposed
11		clean coal facility in Illinois (the "initial clean coal
12		facility") that will have a nameplate capacity of at least
13		500 MW when commercial operation commences, that has a
14		final Clean Air Act permit on June 1, 2009 (the effective
15		date of Public Act 95-1027), and that will meet the
16		definition of clean coal facility in Section 1-10 of this
17		Act when commercial operation commences. The sourcing
18		agreements with this initial clean coal facility shall be
19		subject to both approval of the initial clean coal
20		facility by the General Assembly and satisfaction of the
21		requirements of paragraph (4) of this subsection (d) and
22		shall be executed within 90 days after any such approval
23		by the General Assembly. The Agency and the Commission
24		shall have authority to inspect all books and records
25		associated with the initial clean coal facility during the
26		term of such a sourcing agreement. A utility's sourcing

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1		agreement for electricity produced by the initial clean
2		coal facility shall include:
3		(A) a formula contractual price (the "contract
4		price") approved pursuant to paragraph (4) of this
5		subsection (d), which shall:
6		(i) be determined using a cost of service
7		methodology employing either a level or deferred
8		capital recovery component, based on a capital
9		structure consisting of 45% equity and 55% debt,
10		and a return on equity as may be approved by the
11		Federal Energy Regulatory Commission, which in any
12		case may not exceed the lower of 11.5% or the rate
13		of return approved by the General Assembly
14		pursuant to paragraph (4) of this subsection (d);
15		and
16		(ii) provide that all miscellaneous net
17		revenue, including but not limited to net revenue
18		from the sale of emission allowances, if any,
19		substitute natural gas, if any, grants or other
20		support provided by the State of Illinois or the
21		United States Government, firm transmission
22		rights, if any, by-products produced by the
23		facility, energy or capacity derived from the
24		facility and not covered by a sourcing agreement
25		pursuant to paragraph (3) of this subsection (d)
26		or item (5) of subsection (d) of Section 16-115 of

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1		the Public Utilities Act, whether generated from
2		the synthesis gas derived from coal, from SNG, or
3		from natural gas, shall be credited against the
4		revenue requirement for this initial clean coal
5		facility;
6		(B) power purchase provisions, which shall:
7		(i) provide that the utility party to such
8		sourcing agreement shall pay the contract price
9		for electricity delivered under such sourcing
10		agreement;
11		(ii) require delivery of electricity to the
12		regional transmission organization market of the
13		utility that is party to such sourcing agreement;
14		(iii) require the utility party to such
15		sourcing agreement to buy from the initial clean
16		coal facility in each hour an amount of energy
17		equal to all clean coal energy made available from
18		the initial clean coal facility during such hour
19		times a fraction, the numerator of which is such
20		utility's retail market sales of electricity
21		(expressed in kilowatthours sold) in the State
22		during the prior calendar month and the
23		denominator of which is the total retail market
24		sales of electricity (expressed in kilowatthours
25		sold) in the State by utilities during such prior
26		month and the sales of electricity (expressed in

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

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

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1		clause (i); and
2		(iii) not require the utility to take physical
3		delivery of the electricity produced by the
4		facility;
5		(D) general provisions, which shall:
6		(i) specify a term of no more than 30 years,
7		commencing on the commercial operation date of the
8		facility;
9		(ii) provide that utilities shall maintain
10		adequate records documenting purchases under the
11		sourcing agreements entered into to comply with
12		this subsection (d) and shall file an accounting
13		with the load forecast that must be filed with the
14		Agency by July 15 of each year, in accordance with
15		subsection (d) of Section 16-111.5 of the Public
16		Utilities Act;
17		(iii) provide that all costs associated with
18		the initial clean coal facility will be
19		periodically reported to the Federal Energy
20		Regulatory Commission and to purchasers in
21		accordance with applicable laws governing
22		cost-based wholesale power contracts;
23		(iv) permit the Illinois Power Agency to
24		assume ownership of the initial clean coal
25		facility, without monetary consideration and
26		otherwise on reasonable terms acceptable to the

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1		Agency, if the Agency so requests no less than 3
2		years prior to the end of the stated contract
3		term;
4		(v) require the owner of the initial clean
5		coal facility to provide documentation to the
6		Commission each year, starting in the facility's
7		first year of commercial operation, accurately
8		reporting the quantity of carbon emissions from
9		the facility that have been captured and
10		sequestered and report any quantities of carbon
11		released from the site or sites at which carbon
12		emissions were sequestered in prior years, based
13		on continuous monitoring of such sites. If, in any
14		year after the first year of commercial operation,
15		the owner of the facility fails to demonstrate
16		that the initial clean coal facility captured and
17		sequestered at least 50% of the total carbon
18		emissions that the facility would otherwise emit
19		or that sequestration of emissions from prior
20		years has failed, resulting in the release of
21		carbon dioxide into the atmosphere, the owner of
22		the facility must offset excess emissions. Any
23		such carbon offsets must be permanent, additional,
24		verifiable, real, located within the State of
25		Illinois, and legally and practicably enforceable.
26		The cost of such offsets for the facility that are

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1		not recoverable shall not exceed $15 million in
2		any given year. No costs of any such purchases of
3		carbon offsets may be recovered from a utility or
4		its customers. All carbon offsets purchased for
5		this purpose and any carbon emission credits
6		associated with sequestration of carbon from the
7		facility must be permanently retired. The initial
8		clean coal facility shall not forfeit its
9		designation as a clean coal facility if the
10		facility fails to fully comply with the applicable
11		carbon sequestration requirements in any given
12		year, provided the requisite offsets are
13		purchased. However, the Attorney General, on
14		behalf of the People of the State of Illinois, may
15		specifically enforce the facility's sequestration
16		requirement and the other terms of this contract
17		provision. Compliance with the sequestration
18		requirements and offset purchase requirements
19		specified in paragraph (3) of this subsection (d)
20		shall be reviewed annually by an independent
21		expert retained by the owner of the initial clean
22		coal facility, with the advance written approval
23		of the Attorney General. The Commission may, in
24		the course of the review specified in item (vii),
25		reduce the allowable return on equity for the
26		facility if the facility willfully fails to comply

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1		with the carbon capture and sequestration
2		requirements set forth in this item (v);
3		(vi) include limits on, and accordingly
4		provide for modification of, the amount the
5		utility is required to source under the sourcing
6		agreement consistent with paragraph (2) of this
7		subsection (d);
8		(vii) require Commission review: (1) to
9		determine the justness, reasonableness, and
10		prudence of the inputs to the formula referenced
11		in subparagraphs (A)(i) through (A)(iii) of
12		paragraph (3) of this subsection (d), prior to an
13		adjustment in those inputs including, without
14		limitation, the capital structure and return on
15		equity, fuel costs, and other operations and
16		maintenance costs and (2) to approve the costs to
17		be passed through to customers under the sourcing
18		agreement by which the utility satisfies its
19		statutory obligations. Commission review shall
20		occur no less than every 3 years, regardless of
21		whether any adjustments have been proposed, and
22		shall be completed within 9 months;
23		(viii) limit the utility's obligation to such
24		amount as the utility is allowed to recover
25		through tariffs filed with the Commission,
26		provided that neither the clean coal facility nor

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1		the utility waives any right to assert federal
2		pre-emption or any other argument in response to a
3		purported disallowance of recovery costs;
4		(ix) limit the utility's or alternative retail
5		electric supplier's obligation to incur any
6		liability until such time as the facility is in
7		commercial operation and generating power and
8		energy and such power and energy is being
9		delivered to the facility busbar;
10		(x) provide that the owner or owners of the
11		initial clean coal facility, which is the
12		counterparty to such sourcing agreement, shall
13		have the right from time to time to elect whether
14		the obligations of the utility party thereto shall
15		be governed by the power purchase provisions or
16		the contract for differences provisions;
17		(xi) append documentation showing that the
18		formula rate and contract, insofar as they relate
19		to the power purchase provisions, have been
20		approved by the Federal Energy Regulatory
21		Commission pursuant to Section 205 of the Federal
22		Power Act;
23		(xii) provide that any changes to the terms of
24		the contract, insofar as such changes relate to
25		the power purchase provisions, are subject to
26		review under the public interest standard applied

HB3445 Engrossed - 131 - LRB103 29599 AMQ 55994 b
1		by the Federal Energy Regulatory Commission
2		pursuant to Sections 205 and 206 of the Federal
3		Power Act; and
4		(xiii) conform with customary lender
5		requirements in power purchase agreements used as
6		the basis for financing non-utility generators.
7		(4) Effective date of sourcing agreements with the
8		initial clean coal facility. Any proposed sourcing
9		agreement with the initial clean coal facility shall not
10		become effective unless the following reports are prepared
11		and submitted and authorizations and approvals obtained:
12		(i) Facility cost report. The owner of the initial
13		clean coal facility shall submit to the Commission,
14		the Agency, and the General Assembly a front-end
15		engineering and design study, a facility cost report,
16		method of financing (including but not limited to
17		structure and associated costs), and an operating and
18		maintenance cost quote for the facility (collectively
19		"facility cost report"), which shall be prepared in
20		accordance with the requirements of this paragraph (4)
21		of subsection (d) of this Section, and shall provide
22		the Commission and the Agency access to the work
23		papers, relied upon documents, and any other backup
24		documentation related to the facility cost report.
25		(ii) Commission report. Within 6 months following
26		receipt of the facility cost report, the Commission,

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1		in consultation with the Agency, shall submit a report
2		to the General Assembly setting forth its analysis of
3		the facility cost report. Such report shall include,
4		but not be limited to, a comparison of the costs
5		associated with electricity generated by the initial
6		clean coal facility to the costs associated with
7		electricity generated by other types of generation
8		facilities, an analysis of the rate impacts on
9		residential and small business customers over the life
10		of the sourcing agreements, and an analysis of the
11		likelihood that the initial clean coal facility will
12		commence commercial operation by and be delivering
13		power to the facility's busbar by 2016. To assist in
14		the preparation of its report, the Commission, in
15		consultation with the Agency, may hire one or more
16		experts or consultants, the costs of which shall be
17		paid for by the owner of the initial clean coal
18		facility. The Commission and Agency may begin the
19		process of selecting such experts or consultants prior
20		to receipt of the facility cost report.
21		(iii) General Assembly approval. The proposed
22		sourcing agreements shall not take effect unless,
23		based on the facility cost report and the Commission's
24		report, the General Assembly enacts authorizing
25		legislation approving (A) the projected price, stated
26		in cents per kilowatthour, to be charged for

HB3445 Engrossed - 133 - LRB103 29599 AMQ 55994 b
1		electricity generated by the initial clean coal
2		facility, (B) the projected impact on residential and
3		small business customers' bills over the life of the
4		sourcing agreements, and (C) the maximum allowable
5		return on equity for the project; and
6		(iv) Commission review. If the General Assembly
7		enacts authorizing legislation pursuant to
8		subparagraph (iii) approving a sourcing agreement, the
9		Commission shall, within 90 days of such enactment,
10		complete a review of such sourcing agreement. During
11		such time period, the Commission shall implement any
12		directive of the General Assembly, resolve any
13		disputes between the parties to the sourcing agreement
14		concerning the terms of such agreement, approve the
15		form of such agreement, and issue an order finding
16		that the sourcing agreement is prudent and reasonable.
17		The facility cost report shall be prepared as follows:
18		(A) The facility cost report shall be prepared by
19		duly licensed engineering and construction firms
20		detailing the estimated capital costs payable to one
21		or more contractors or suppliers for the engineering,
22		procurement and construction of the components
23		comprising the initial clean coal facility and the
24		estimated costs of operation and maintenance of the
25		facility. The facility cost report shall include:
26		(i) an estimate of the capital cost of the

HB3445 Engrossed - 134 - LRB103 29599 AMQ 55994 b
1		core plant based on one or more front end
2		engineering and design studies for the
3		gasification island and related facilities. The
4		core plant shall include all civil, structural,
5		mechanical, electrical, control, and safety
6		systems.
7		(ii) an estimate of the capital cost of the
8		balance of the plant, including any capital costs
9		associated with sequestration of carbon dioxide
10		emissions and all interconnects and interfaces
11		required to operate the facility, such as
12		transmission of electricity, construction or
13		backfeed power supply, pipelines to transport
14		substitute natural gas or carbon dioxide, potable
15		water supply, natural gas supply, water supply,
16		water discharge, landfill, access roads, and coal
17		delivery.
18		The quoted construction costs shall be expressed
19		in nominal dollars as of the date that the quote is
20		prepared and shall include capitalized financing costs
21		during construction, taxes, insurance, and other
22		owner's costs, and an assumed escalation in materials
23		and labor beyond the date as of which the construction
24		cost quote is expressed.
25		(B) The front end engineering and design study for
26		the gasification island and the cost study for the

HB3445 Engrossed - 135 - LRB103 29599 AMQ 55994 b
1		balance of plant shall include sufficient design work
2		to permit quantification of major categories of
3		materials, commodities and labor hours, and receipt of
4		quotes from vendors of major equipment required to
5		construct and operate the clean coal facility.
6		(C) The facility cost report shall also include an
7		operating and maintenance cost quote that will provide
8		the estimated cost of delivered fuel, personnel,
9		maintenance contracts, chemicals, catalysts,
10		consumables, spares, and other fixed and variable
11		operations and maintenance costs. The delivered fuel
12		cost estimate will be provided by a recognized third
13		party expert or experts in the fuel and transportation
14		industries. The balance of the operating and
15		maintenance cost quote, excluding delivered fuel
16		costs, will be developed based on the inputs provided
17		by duly licensed engineering and construction firms
18		performing the construction cost quote, potential
19		vendors under long-term service agreements and plant
20		operating agreements, or recognized third party plant
21		operator or operators.
22		The operating and maintenance cost quote
23		(including the cost of the front end engineering and
24		design study) shall be expressed in nominal dollars as
25		of the date that the quote is prepared and shall
26		include taxes, insurance, and other owner's costs, and

HB3445 Engrossed - 136 - LRB103 29599 AMQ 55994 b
1		an assumed escalation in materials and labor beyond
2		the date as of which the operating and maintenance
3		cost quote is expressed.
4		(D) The facility cost report shall also include an
5		analysis of the initial clean coal facility's ability
6		to deliver power and energy into the applicable
7		regional transmission organization markets and an
8		analysis of the expected capacity factor for the
9		initial clean coal facility.
10		(E) Amounts paid to third parties unrelated to the
11		owner or owners of the initial clean coal facility to
12		prepare the core plant construction cost quote,
13		including the front end engineering and design study,
14		and the operating and maintenance cost quote will be
15		reimbursed through Coal Development Bonds.
16		(5) Re-powering and retrofitting coal-fired power
17		plants previously owned by Illinois utilities to qualify
18		as clean coal facilities. During the 2009 procurement
19		planning process and thereafter, the Agency and the
20		Commission shall consider sourcing agreements covering
21		electricity generated by power plants that were previously
22		owned by Illinois utilities and that have been or will be
23		converted into clean coal facilities, as defined by
24		Section 1-10 of this Act. Pursuant to such procurement
25		planning process, the owners of such facilities may
26		propose to the Agency sourcing agreements with utilities

HB3445 Engrossed - 137 - LRB103 29599 AMQ 55994 b
1		and alternative retail electric suppliers required to
2		comply with subsection (d) of this Section and item (5) of
3		subsection (d) of Section 16-115 of the Public Utilities
4		Act, covering electricity generated by such facilities. In
5		the case of sourcing agreements that are power purchase
6		agreements, the contract price for electricity sales shall
7		be established on a cost of service basis. In the case of
8		sourcing agreements that are contracts for differences,
9		the contract price from which the reference price is
10		subtracted shall be established on a cost of service
11		basis. The Agency and the Commission may approve any such
12		utility sourcing agreements that do not exceed cost-based
13		benchmarks developed by the procurement administrator, in
14		consultation with the Commission staff, Agency staff and
15		the procurement monitor, subject to Commission review and
16		approval. The Commission shall have authority to inspect
17		all books and records associated with these clean coal
18		facilities during the term of any such contract.
19		(6) Costs incurred under this subsection (d) or
20		pursuant to a contract entered into under this subsection
21		(d) shall be deemed prudently incurred and reasonable in
22		amount and the electric utility shall be entitled to full
23		cost recovery pursuant to the tariffs filed with the
24		Commission.
25		(d-5) Zero emission standard.
26		(1) Beginning with the delivery year commencing on

HB3445 Engrossed - 138 - LRB103 29599 AMQ 55994 b
1		June 1, 2017, the Agency shall, for electric utilities
2		that serve at least 100,000 retail customers in this
3		State, procure contracts with zero emission facilities
4		that are reasonably capable of generating cost-effective
5		zero emission credits in an amount approximately equal to
6		16% of the actual amount of electricity delivered by each
7		electric utility to retail customers in the State during
8		calendar year 2014. For an electric utility serving fewer
9		than 100,000 retail customers in this State that
10		requested, under Section 16-111.5 of the Public Utilities
11		Act, that the Agency procure power and energy for all or a
12		portion of the utility's Illinois load for the delivery
13		year commencing June 1, 2016, the Agency shall procure
14		contracts with zero emission facilities that are
15		reasonably capable of generating cost-effective zero
16		emission credits in an amount approximately equal to 16%
17		of the portion of power and energy to be procured by the
18		Agency for the utility. The duration of the contracts
19		procured under this subsection (d-5) shall be for a term
20		of 10 years ending May 31, 2027. The quantity of zero
21		emission credits to be procured under the contracts shall
22		be all of the zero emission credits generated by the zero
23		emission facility in each delivery year; however, if the
24		zero emission facility is owned by more than one entity,
25		then the quantity of zero emission credits to be procured
26		under the contracts shall be the amount of zero emission

HB3445 Engrossed - 139 - LRB103 29599 AMQ 55994 b
1		credits that are generated from the portion of the zero
2		emission facility that is owned by the winning supplier.
3		The 16% value identified in this paragraph (1) is the
4		average of the percentage targets in subparagraph (B) of
5		paragraph (1) of subsection (c) of this Section for the 5
6		delivery years beginning June 1, 2017.
7		The procurement process shall be subject to the
8		following provisions:
9		(A) Those zero emission facilities that intend to
10		participate in the procurement shall submit to the
11		Agency the following eligibility information for each
12		zero emission facility on or before the date
13		established by the Agency:
14		(i) the in-service date and remaining useful
15		life of the zero emission facility;
16		(ii) the amount of power generated annually
17		for each of the years 2005 through 2015, and the
18		projected zero emission credits to be generated
19		over the remaining useful life of the zero
20		emission facility, which shall be used to
21		determine the capability of each facility;
22		(iii) the annual zero emission facility cost
23		projections, expressed on a per megawatthour
24		basis, over the next 6 delivery years, which shall
25		include the following: operation and maintenance
26		expenses; fully allocated overhead costs, which

HB3445 Engrossed - 140 - LRB103 29599 AMQ 55994 b
1		shall be allocated using the methodology developed
2		by the Institute for Nuclear Power Operations;
3		fuel expenditures; non-fuel capital expenditures;
4		spent fuel expenditures; a return on working
5		capital; the cost of operational and market risks
6		that could be avoided by ceasing operation; and
7		any other costs necessary for continued
8		operations, provided that "necessary" means, for
9		purposes of this item (iii), that the costs could
10		reasonably be avoided only by ceasing operations
11		of the zero emission facility; and
12		(iv) a commitment to continue operating, for
13		the duration of the contract or contracts executed
14		under the procurement held under this subsection
15		(d-5), the zero emission facility that produces
16		the zero emission credits to be procured in the
17		procurement.
18		The information described in item (iii) of this
19		subparagraph (A) may be submitted on a confidential
20		basis and shall be treated and maintained by the
21		Agency, the procurement administrator, and the
22		Commission as confidential and proprietary and exempt
23		from disclosure under subparagraphs (a) and (g) of
24		paragraph (1) of Section 7 of the Freedom of
25		Information Act. The Office of Attorney General shall
26		have access to, and maintain the confidentiality of,

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1		such information pursuant to Section 6.5 of the
2		Attorney General Act.
3		(B) The price for each zero emission credit
4		procured under this subsection (d-5) for each delivery
5		year shall be in an amount that equals the Social Cost
6		of Carbon, expressed on a price per megawatthour
7		basis. However, to ensure that the procurement remains
8		affordable to retail customers in this State if
9		electricity prices increase, the price in an
10		applicable delivery year shall be reduced below the
11		Social Cost of Carbon by the amount ("Price
12		Adjustment") by which the market price index for the
13		applicable delivery year exceeds the baseline market
14		price index for the consecutive 12-month period ending
15		May 31, 2016. If the Price Adjustment is greater than
16		or equal to the Social Cost of Carbon in an applicable
17		delivery year, then no payments shall be due in that
18		delivery year. The components of this calculation are
19		defined as follows:
20		(i) Social Cost of Carbon: The Social Cost of
21		Carbon is $16.50 per megawatthour, which is based
22		on the U.S. Interagency Working Group on Social
23		Cost of Carbon's price in the August 2016
24		Technical Update using a 3% discount rate,
25		adjusted for inflation for each year of the
26		program. Beginning with the delivery year

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1		commencing June 1, 2023, the price per
2		megawatthour shall increase by $1 per
3		megawatthour, and continue to increase by an
4		additional $1 per megawatthour each delivery year
5		thereafter.
6		(ii) Baseline market price index: The baseline
7		market price index for the consecutive 12-month
8		period ending May 31, 2016 is $31.40 per
9		megawatthour, which is based on the sum of (aa)
10		the average day-ahead energy price across all
11		hours of such 12-month period at the PJM
12		Interconnection LLC Northern Illinois Hub, (bb)
13		50% multiplied by the Base Residual Auction, or
14		its successor, capacity price for the rest of the
15		RTO zone group determined by PJM Interconnection
16		LLC, divided by 24 hours per day, and (cc) 50%
17		multiplied by the Planning Resource Auction, or
18		its successor, capacity price for Zone 4
19		determined by the Midcontinent Independent System
20		Operator, Inc., divided by 24 hours per day.
21		(iii) Market price index: The market price
22		index for a delivery year shall be the sum of
23		projected energy prices and projected capacity
24		prices determined as follows:
25		(aa) Projected energy prices: the
26		projected energy prices for the applicable

HB3445 Engrossed - 143 - LRB103 29599 AMQ 55994 b
1		delivery year shall be calculated once for the
2		year using the forward market price for the
3		PJM Interconnection, LLC Northern Illinois
4		Hub. The forward market price shall be
5		calculated as follows: the energy forward
6		prices for each month of the applicable
7		delivery year averaged for each trade date
8		during the calendar year immediately preceding
9		that delivery year to produce a single energy
10		forward price for the delivery year. The
11		forward market price calculation shall use
12		data published by the Intercontinental
13		Exchange, or its successor.
14		(bb) Projected capacity prices:
15		(I) For the delivery years commencing
16		June 1, 2017, June 1, 2018, and June 1,
17		2019, the projected capacity price shall
18		be equal to the sum of (1) 50% multiplied
19		by the Base Residual Auction, or its
20		successor, price for the rest of the RTO
21		zone group as determined by PJM
22		Interconnection LLC, divided by 24 hours
23		per day and, (2) 50% multiplied by the
24		resource auction price determined in the
25		resource auction administered by the
26		Midcontinent Independent System Operator,

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

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1		Interconnection, LLC.
2		"RTO" means regional transmission
3		organization.
4		(C) No later than 45 days after June 1, 2017 (the
5		effective date of Public Act 99-906), the Agency shall
6		publish its proposed zero emission standard
7		procurement plan. The plan shall be consistent with
8		the provisions of this paragraph (1) and shall provide
9		that winning bids shall be selected based on public
10		interest criteria that include, but are not limited
11		to, minimizing carbon dioxide emissions that result
12		from electricity consumed in Illinois and minimizing
13		sulfur dioxide, nitrogen oxide, and particulate matter
14		emissions that adversely affect the citizens of this
15		State. In particular, the selection of winning bids
16		shall take into account the incremental environmental
17		benefits resulting from the procurement, such as any
18		existing environmental benefits that are preserved by
19		the procurements held under Public Act 99-906 and
20		would cease to exist if the procurements were not
21		held, including the preservation of zero emission
22		facilities. The plan shall also describe in detail how
23		each public interest factor shall be considered and
24		weighted in the bid selection process to ensure that
25		the public interest criteria are applied to the
26		procurement and given full effect.

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1		For purposes of developing the plan, the Agency
2		shall consider any reports issued by a State agency,
3		board, or commission under House Resolution 1146 of
4		the 98th General Assembly and paragraph (4) of
5		subsection (d) of this Section, as well as publicly
6		available analyses and studies performed by or for
7		regional transmission organizations that serve the
8		State and their independent market monitors.
9		Upon publishing of the zero emission standard
10		procurement plan, copies of the plan shall be posted
11		and made publicly available on the Agency's website.
12		All interested parties shall have 10 days following
13		the date of posting to provide comment to the Agency on
14		the plan. All comments shall be posted to the Agency's
15		website. Following the end of the comment period, but
16		no more than 60 days later than June 1, 2017 (the
17		effective date of Public Act 99-906), the Agency shall
18		revise the plan as necessary based on the comments
19		received and file its zero emission standard
20		procurement plan with the Commission.
21		If the Commission determines that the plan will
22		result in the procurement of cost-effective zero
23		emission credits, then the Commission shall, after
24		notice and hearing, but no later than 45 days after the
25		Agency filed the plan, approve the plan or approve
26		with modification. For purposes of this subsection

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1		(d-5), "cost effective" means the projected costs of
2		procuring zero emission credits from zero emission
3		facilities do not cause the limit stated in paragraph
4		(2) of this subsection to be exceeded.
5		(C-5) As part of the Commission's review and
6		acceptance or rejection of the procurement results,
7		the Commission shall, in its public notice of
8		successful bidders:
9		(i) identify how the winning bids satisfy the
10		public interest criteria described in subparagraph
11		(C) of this paragraph (1) of minimizing carbon
12		dioxide emissions that result from electricity
13		consumed in Illinois and minimizing sulfur
14		dioxide, nitrogen oxide, and particulate matter
15		emissions that adversely affect the citizens of
16		this State;
17		(ii) specifically address how the selection of
18		winning bids takes into account the incremental
19		environmental benefits resulting from the
20		procurement, including any existing environmental
21		benefits that are preserved by the procurements
22		held under Public Act 99-906 and would have ceased
23		to exist if the procurements had not been held,
24		such as the preservation of zero emission
25		facilities;
26		(iii) quantify the environmental benefit of

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1		preserving the resources identified in item (ii)
2		of this subparagraph (C-5), including the
3		following:
4		(aa) the value of avoided greenhouse gas
5		emissions measured as the product of the zero
6		emission facilities' output over the contract
7		term multiplied by the U.S. Environmental
8		Protection Agency eGrid subregion carbon
9		dioxide emission rate and the U.S. Interagency
10		Working Group on Social Cost of Carbon's price
11		in the August 2016 Technical Update using a 3%
12		discount rate, adjusted for inflation for each
13		delivery year; and
14		(bb) the costs of replacement with other
15		zero carbon dioxide resources, including wind
16		and photovoltaic, based upon the simple
17		average of the following:
18		(I) the price, or if there is more
19		than one price, the average of the prices,
20		paid for renewable energy credits from new
21		utility-scale wind projects in the
22		procurement events specified in item (i)
23		of subparagraph (G) of paragraph (1) of
24		subsection (c) of this Section; and
25		(II) 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 solar projects and
3		brownfield site photovoltaic projects in
4		the procurement events specified in item
5		(ii) of subparagraph (G) of paragraph (1)
6		of subsection (c) of this Section and,
7		after January 1, 2015, renewable energy
8		credits from photovoltaic distributed
9		generation projects in procurement events
10		held under subsection (c) of this Section.
11		Each utility shall enter into binding contractual
12		arrangements with the winning suppliers.
13		The procurement described in this subsection
14		(d-5), including, but not limited to, the execution of
15		all contracts procured, shall be completed no later
16		than May 10, 2017. Based on the effective date of
17		Public Act 99-906, the Agency and Commission may, as
18		appropriate, modify the various dates and timelines
19		under this subparagraph and subparagraphs (C) and (D)
20		of this paragraph (1). The procurement and plan
21		approval processes required by this subsection (d-5)
22		shall be conducted in conjunction with the procurement
23		and plan approval processes required by subsection (c)
24		of this Section and Section 16-111.5 of the Public
25		Utilities Act, to the extent practicable.
26		Notwithstanding whether a procurement event is

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1		conducted under Section 16-111.5 of the Public
2		Utilities Act, the Agency shall immediately initiate a
3		procurement process on June 1, 2017 (the effective
4		date of Public Act 99-906).
5		(D) Following the procurement event described in
6		this paragraph (1) and consistent with subparagraph
7		(B) of this paragraph (1), the Agency shall calculate
8		the payments to be made under each contract for the
9		next delivery year based on the market price index for
10		that delivery year. The Agency shall publish the
11		payment calculations no later than May 25, 2017 and
12		every May 25 thereafter.
13		(E) Notwithstanding the requirements of this
14		subsection (d-5), the contracts executed under this
15		subsection (d-5) shall provide that the zero emission
16		facility may, as applicable, suspend or terminate
17		performance under the contracts in the following
18		instances:
19		(i) A zero emission facility shall be excused
20		from its performance under the contract for any
21		cause beyond the control of the resource,
22		including, but not restricted to, acts of God,
23		flood, drought, earthquake, storm, fire,
24		lightning, epidemic, war, riot, civil disturbance
25		or disobedience, labor dispute, labor or material
26		shortage, sabotage, acts of public enemy,

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1		explosions, orders, regulations or restrictions
2		imposed by governmental, military, or lawfully
3		established civilian authorities, which, in any of
4		the foregoing cases, by exercise of commercially
5		reasonable efforts the zero emission facility
6		could not reasonably have been expected to avoid,
7		and which, by the exercise of commercially
8		reasonable efforts, it has been unable to
9		overcome. In such event, the zero emission
10		facility shall be excused from performance for the
11		duration of the event, including, but not limited
12		to, delivery of zero emission credits, and no
13		payment shall be due to the zero emission facility
14		during the duration of the event.
15		(ii) A zero emission facility shall be
16		permitted to terminate the contract if legislation
17		is enacted into law by the General Assembly that
18		imposes or authorizes a new tax, special
19		assessment, or fee on the generation of
20		electricity, the ownership or leasehold of a
21		generating unit, or the privilege or occupation of
22		such generation, ownership, or leasehold of
23		generation units by a zero emission facility.
24		However, the provisions of this item (ii) do not
25		apply to any generally applicable tax, special
26		assessment or fee, or requirements imposed by

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1		federal law.
2		(iii) A zero emission facility shall be
3		permitted to terminate the contract in the event
4		that the resource requires capital expenditures in
5		excess of $40,000,000 that were neither known nor
6		reasonably foreseeable at the time it executed the
7		contract and that a prudent owner or operator of
8		such resource would not undertake.
9		(iv) A zero emission facility shall be
10		permitted to terminate the contract in the event
11		the Nuclear Regulatory Commission terminates the
12		resource's license.
13		(F) If the zero emission facility elects to
14		terminate a contract under subparagraph (E) of this
15		paragraph (1), then the Commission shall reopen the
16		docket in which the Commission approved the zero
17		emission standard procurement plan under subparagraph
18		(C) of this paragraph (1) and, after notice and
19		hearing, enter an order acknowledging the contract
20		termination election if such termination is consistent
21		with the provisions of this subsection (d-5).
22		(2) For purposes of this subsection (d-5), the amount
23		paid per kilowatthour means the total amount paid for
24		electric service expressed on a per kilowatthour basis.
25		For purposes of this subsection (d-5), the total amount
26		paid for electric service includes, without limitation,

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1		amounts paid for supply, transmission, distribution,
2		surcharges, and add-on taxes.
3		Notwithstanding the requirements of this subsection
4		(d-5), the contracts executed under this subsection (d-5)
5		shall provide that the total of zero emission credits
6		procured under a procurement plan shall be subject to the
7		limitations of this paragraph (2). For each delivery year,
8		the contractual volume receiving payments in such year
9		shall be reduced for all retail customers based on the
10		amount necessary to limit the net increase that delivery
11		year to the costs of those credits included in the amounts
12		paid by eligible retail customers in connection with
13		electric service to no more than 1.65% of the amount paid
14		per kilowatthour by eligible retail customers during the
15		year ending May 31, 2009. The result of this computation
16		shall apply to and reduce the procurement for all retail
17		customers, and all those customers shall pay the same
18		single, uniform cents per kilowatthour charge under
19		subsection (k) of Section 16-108 of the Public Utilities
20		Act. To arrive at a maximum dollar amount of zero emission
21		credits to be paid for the particular delivery year, the
22		resulting per kilowatthour amount shall be applied to the
23		actual amount of kilowatthours of electricity delivered by
24		the electric utility in the delivery year immediately
25		prior to the procurement, to all retail customers in its
26		service territory. Unpaid contractual volume for any

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1		delivery year shall be paid in any subsequent delivery
2		year in which such payments can be made without exceeding
3		the amount specified in this paragraph (2). The
4		calculations required by this paragraph (2) shall be made
5		only once for each procurement plan year. Once the
6		determination as to the amount of zero emission credits to
7		be paid is made based on the calculations set forth in this
8		paragraph (2), no subsequent rate impact determinations
9		shall be made and no adjustments to those contract amounts
10		shall be allowed. All costs incurred under those contracts
11		and in implementing this subsection (d-5) shall be
12		recovered by the electric utility as provided in this
13		Section.
14		No later than June 30, 2019, the Commission shall
15		review the limitation on the amount of zero emission
16		credits procured under this subsection (d-5) and report to
17		the General Assembly its findings as to whether that
18		limitation unduly constrains the procurement of
19		cost-effective zero emission credits.
20		(3) Six years after the execution of a contract under
21		this subsection (d-5), the Agency shall determine whether
22		the actual zero emission credit payments received by the
23		supplier over the 6-year period exceed the Average ZEC
24		Payment. In addition, at the end of the term of a contract
25		executed under this subsection (d-5), or at the time, if
26		any, a zero emission facility's contract is terminated

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

HB3445 Engrossed - 156 - LRB103 29599 AMQ 55994 b
1		defined in subparagraph (B) of paragraph (1) of this
2		subsection (d-5), during the term of the contract.
3		(B) The average of the market price indices, as
4		defined in subparagraph (B) of paragraph (1) of this
5		subsection (d-5), during the term of the contract,
6		minus the baseline market price index, as defined in
7		subparagraph (B) of paragraph (1) of this subsection
8		(d-5).
9		If the subtraction yields a negative number, then the
10		Average ZEC Payment shall be zero.
11		(4) Cost-effective zero emission credits procured from
12		zero emission facilities shall satisfy the applicable
13		definitions set forth in Section 1-10 of this Act.
14		(5) The electric utility shall retire all zero
15		emission credits used to comply with the requirements of
16		this subsection (d-5).
17		(6) Electric utilities shall be entitled to recover
18		all of the costs associated with the procurement of zero
19		emission credits through an automatic adjustment clause
20		tariff in accordance with subsection (k) and (m) of
21		Section 16-108 of the Public Utilities Act, and the
22		contracts executed under this subsection (d-5) shall
23		provide that the utilities' payment obligations under such
24		contracts shall be reduced if an adjustment is required
25		under subsection (m) of Section 16-108 of the Public
26		Utilities Act.

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1		(7) This subsection (d-5) shall become inoperative on
2		January 1, 2028.
3		(d-10) Nuclear Plant Assistance; carbon mitigation
4		credits.
5		(1) The General Assembly finds:
6		(A) The health, welfare, and prosperity of all
7		Illinois citizens require that the State of Illinois act
8		to avoid and not increase carbon emissions from electric
9		generation sources while continuing to ensure affordable,
10		stable, and reliable electricity to all citizens.
11		(B) Absent immediate action by the State to preserve
12		existing carbon-free energy resources, those resources may
13		retire, and the electric generation needs of Illinois'
14		retail customers may be met instead by facilities that
15		emit significant amounts of carbon pollution and other
16		harmful air pollutants at a high social and economic cost
17		until Illinois is able to develop other forms of clean
18		energy.
19		(C) The General Assembly finds that nuclear power
20		generation is necessary for the State's transition to 100%
21		clean energy, and ensuring continued operation of nuclear
22		plants advances environmental and public health interests
23		through providing carbon-free electricity while reducing
24		the air pollution profile of the Illinois energy
25		generation fleet.
26		(D) The clean energy attributes of nuclear generation

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

HB3445 Engrossed - 159 - LRB103 29599 AMQ 55994 b
1		health and welfare of Illinois residents through decreased
2		reliance on more highly polluting generation.
3		(I) The General Assembly therefore finds it necessary
4		to establish carbon mitigation credits to ensure decreased
5		reliance on more carbon-intensive energy resources, for
6		transitioning to a fully decarbonized electricity sector,
7		and to help ensure health and welfare of the State's
8		residents.
9		(2) As used in this subsection:
10		"Baseline costs" means costs used to establish a customer
11		protection cap that have been evaluated through an independent
12		audit of a carbon-free energy resource conducted by the
13		Environmental Protection Agency that evaluated projected
14		annual costs for operation and maintenance expenses; fully
15		allocated overhead costs, which shall be allocated using the
16		methodology developed by the Institute for Nuclear Power
17		Operations; fuel expenditures; nonfuel capital expenditures;
18		spent fuel expenditures; a return on working capital; the cost
19		of operational and market risks that could be avoided by
20		ceasing operation; and any other costs necessary for continued
21		operations, provided that "necessary" means, for purposes of
22		this definition, that the costs could reasonably be avoided
23		only by ceasing operations of the carbon-free energy resource.
24		"Carbon mitigation credit" means a tradable credit that
25		represents the carbon emission reduction attributes of one
26		megawatt-hour of energy produced from a carbon-free energy

HB3445 Engrossed - 160 - LRB103 29599 AMQ 55994 b
1		resource.
2		"Carbon-free energy resource" means a generation facility
3		that: (1) is fueled by nuclear power; and (2) is
4		interconnected to PJM Interconnection, LLC.
5		(3) Procurement.
6		(A) Beginning with the delivery year commencing on
7		June 1, 2022, the Agency shall, for electric utilities
8		serving at least 3,000,000 retail customers in the State,
9		seek to procure contracts for no more than approximately
10		54,500,000 cost-effective carbon mitigation credits from
11		carbon-free energy resources because such credits are
12		necessary to support current levels of carbon-free energy
13		generation and ensure the State meets its carbon dioxide
14		emissions reduction goals. The Agency shall not make a
15		partial award of a contract for carbon mitigation credits
16		covering a fractional amount of a carbon-free energy
17		resource's projected output.
18		(B) Each carbon-free energy resource that intends to
19		participate in a procurement shall be required to submit
20		to the Agency the following information for the resource
21		on or before the date established by the Agency:
22		(i) the in-service date and remaining useful life
23		of the carbon-free energy resource;
24		(ii) the amount of power generated annually for
25		each of the past 10 years, which shall be used to
26		determine the capability of each facility;

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1		(iii) a commitment to be reflected in any contract
2		entered into pursuant to this subsection (d-10) to
3		continue operating the carbon-free energy resource at
4		a capacity factor of at least 88% annually on average
5		for the duration of the contract or contracts executed
6		under the procurement held under this subsection
7		(d-10), except in an instance described in
8		subparagraph (E) of paragraph (1) of subsection (d-5)
9		of this Section or made impracticable as a result of
10		compliance with law or regulation;
11		(iv) financial need and the risk of loss of the
12		environmental benefits of such resource, which shall
13		include the following information:
14		(I) the carbon-free energy resource's cost
15		projections, expressed on a per megawatt-hour
16		basis, over the next 5 delivery years, which shall
17		include the following: operation and maintenance
18		expenses; fully allocated overhead costs, which
19		shall be allocated using the methodology developed
20		by the Institute for Nuclear Power Operations;
21		fuel expenditures; nonfuel capital expenditures;
22		spent fuel expenditures; a return on working
23		capital; the cost of operational and market risks
24		that could be avoided by ceasing operation; and
25		any other costs necessary for continued
26		operations, provided that "necessary" means, for

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1		purposes of this subitem (I), that the costs could
2		reasonably be avoided only by ceasing operations
3		of the carbon-free energy resource; and
4		(II) the carbon-free energy resource's revenue
5		projections, including energy, capacity, ancillary
6		services, any other direct State support, known or
7		anticipated federal attribute credits, known or
8		anticipated tax credits, and any other direct
9		federal support.
10		The information described in this subparagraph (B) may
11		be submitted on a confidential basis and shall be treated
12		and maintained by the Agency, the procurement
13		administrator, and the Commission as confidential and
14		proprietary and exempt from disclosure under subparagraphs
15		(a) and (g) of paragraph (1) of Section 7 of the Freedom of
16		Information Act. The Office of the Attorney General shall
17		have access to, and maintain the confidentiality of, such
18		information pursuant to Section 6.5 of the Attorney
19		General Act.
20		(C) The Agency shall solicit bids for the contracts
21		described in this subsection (d-10) from carbon-free
22		energy resources that have satisfied the requirements of
23		subparagraph (B) of this paragraph (3). The contracts
24		procured pursuant to a procurement event shall reflect,
25		and be subject to, the following terms, requirements, and
26		limitations:

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1		(i) Contracts are for delivery of carbon
2		mitigation credits, and are not energy or capacity
3		sales contracts requiring physical delivery. Pursuant
4		to item (iii), contract payments shall fully deduct
5		the value of any monetized federal production tax
6		credits, credits issued pursuant to a federal clean
7		energy standard, and other federal credits if
8		applicable.
9		(ii) Contracts for carbon mitigation credits shall
10		commence with the delivery year beginning on June 1,
11		2022 and shall be for a term of 5 delivery years
12		concluding on May 31, 2027.
13		(iii) The price per carbon mitigation credit to be
14		paid under a contract for a given delivery year shall
15		be equal to an accepted bid price less the sum of:
16		(I) one of the following energy price indices,
17		selected by the bidder at the time of the bid for
18		the term of the contract:
19		(aa) the weighted-average hourly day-ahead
20		price for the applicable delivery year at the
21		busbar of all resources procured pursuant to
22		this subsection (d-10), weighted by actual
23		production from the resources; or
24		(bb) the projected energy price for the
25		PJM Interconnection, LLC Northern Illinois Hub
26		for the applicable delivery year determined

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1		according to subitem (aa) of item (iii) of
2		subparagraph (B) of paragraph (1) of
3		subsection (d-5).
4		(II) the Base Residual Auction Capacity Price
5		for the ComEd zone as determined by PJM
6		Interconnection, LLC, divided by 24 hours per day,
7		for the applicable delivery year for the first 3
8		delivery years, and then any subsequent delivery
9		years unless the PJM Interconnection, LLC applies
10		the Minimum Offer Price Rule to participating
11		carbon-free energy resources because they supply
12		carbon mitigation credits pursuant to this Section
13		at which time, upon notice by the carbon-free
14		energy resource to the Commission and subject to
15		the Commission's confirmation, the value under
16		this subitem shall be zero, as further described
17		in the carbon mitigation credit procurement plan;
18		and
19		(III) any value of monetized federal tax
20		credits, direct payments, or similar subsidy
21		provided to the carbon-free energy resource from
22		any unit of government that is not already
23		reflected in energy prices.
24		If the price-per-megawatt-hour calculation
25		performed under item (iii) of this subparagraph (C)
26		for a given delivery year results in a net positive

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

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1		2022, the baseline costs shall be an amount equal
2		to $30.30 per megawatt-hour.
3		(II) For the delivery year beginning June 1,
4		2023, the baseline costs shall be an amount equal
5		to $32.50 per megawatt-hour.
6		(III) For the delivery year beginning June 1,
7		2024, the baseline costs shall be an amount equal
8		to $33.43 per megawatt-hour.
9		(IV) For the delivery year beginning June 1,
10		2025, the baseline costs shall be an amount equal
11		to $33.50 per megawatt-hour.
12		(V) For the delivery year beginning June 1,
13		2026, the baseline costs shall be an amount equal
14		to $34.50 per megawatt-hour.
15		An Environmental Protection Agency consultant
16		forecast, included in a report issued April 14, 2021,
17		projects that a carbon-free energy resource has the
18		opportunity to earn on average approximately $30.28
19		per megawatt-hour, for the sale of energy and capacity
20		during the time period between 2022 and 2027.
21		Therefore, the sale of carbon mitigation credits
22		provides the opportunity to receive an additional
23		amount per megawatt-hour in addition to the projected
24		prices for energy and capacity.
25		Although actual energy and capacity prices may
26		vary from year-to-year, the General Assembly finds

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1		that this customer protection cap will help ensure
2		that the cost of carbon mitigation credits will be
3		less than its value, based upon the social cost of
4		carbon identified in the Technical Support Document
5		issued in February 2021 by the U.S. Interagency
6		Working Group on Social Cost of Greenhouse Gases and
7		the PJM Interconnection, LLC carbon dioxide marginal
8		emission rate for 2020, and that a carbon-free energy
9		resource receiving payment for carbon mitigation
10		credits receives no more than necessary to keep those
11		units in operation.
12		(D) No later than 7 days after the effective date of
13		this amendatory Act of the 102nd General Assembly, the
14		Agency shall publish its proposed carbon mitigation credit
15		procurement plan. The Plan shall provide that winning bids
16		shall be selected by taking into consideration which
17		resources best match public interest criteria that
18		include, but are not limited to, minimizing carbon dioxide
19		emissions that result from electricity consumed in
20		Illinois and minimizing sulfur dioxide, nitrogen oxide,
21		and particulate matter emissions that adversely affect the
22		citizens of this State. The selection of winning bids
23		shall also take into account the incremental environmental
24		benefits resulting from the procurement or procurements,
25		such as any existing environmental benefits that are
26		preserved by a procurement held under this subsection

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1		(d-10) and would cease to exist if the procurement were
2		not held, including the preservation of carbon-free energy
3		resources. For those bidders having the same public
4		interest criteria score, the relative ranking of such
5		bidders shall be determined by price. The Plan shall
6		describe in detail how each public interest factor shall
7		be considered and weighted in the bid selection process to
8		ensure that the public interest criteria are applied to
9		the procurement. The Plan shall, to the extent practical
10		and permissible by federal law, ensure that successful
11		bidders make commercially reasonable efforts to apply for
12		federal tax credits, direct payments, or similar subsidy
13		programs that support carbon-free generation and for which
14		the successful bidder is eligible. Upon publishing of the
15		carbon mitigation credit procurement plan, copies of the
16		plan shall be posted and made publicly available on the
17		Agency's website. All interested parties shall have 7 days
18		following the date of posting to provide comment to the
19		Agency on the plan. All comments shall be posted to the
20		Agency's website. Following the end of the comment period,
21		but no more than 19 days later than the effective date of
22		this amendatory Act of the 102nd General Assembly, the
23		Agency shall revise the plan as necessary based on the
24		comments received and file its carbon mitigation credit
25		procurement plan with the Commission.
26		(E) If the Commission determines that the plan is

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1		likely to result in the procurement of cost-effective
2		carbon mitigation credits, then the Commission shall,
3		after notice and hearing and opportunity for comment, but
4		no later than 42 days after the Agency filed the plan,
5		approve the plan or approve it with modification. For
6		purposes of this subsection (d-10), "cost-effective" means
7		carbon mitigation credits that are procured from
8		carbon-free energy resources at prices that are within the
9		limits specified in this paragraph (3). As part of the
10		Commission's review and acceptance or rejection of the
11		procurement results, the Commission shall, in its public
12		notice of successful bidders:
13		(i) identify how the selected carbon-free energy
14		resources satisfy the public interest criteria
15		described in this paragraph (3) of minimizing carbon
16		dioxide emissions that result from electricity
17		consumed in Illinois and minimizing sulfur dioxide,
18		nitrogen oxide, and particulate matter emissions that
19		adversely affect the citizens of this State;
20		(ii) specifically address how the selection of
21		carbon-free energy resources takes into account the
22		incremental environmental benefits resulting from the
23		procurement, including any existing environmental
24		benefits that are preserved by the procurements held
25		under this amendatory Act of the 102nd General
26		Assembly and would have ceased to exist if the

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1		procurements had not been held, such as the
2		preservation of carbon-free energy resources;
3		(iii) quantify the environmental benefit of
4		preserving the carbon-free energy resources procured
5		pursuant to this subsection (d-10), including the
6		following:
7		(I) an assessment value of avoided greenhouse
8		gas emissions measured as the product of the
9		carbon-free energy resources' output over the
10		contract term, using generally accepted
11		methodologies for the valuation of avoided
12		emissions; and
13		(II) an assessment of costs of replacement
14		with other carbon-free energy resources and
15		renewable energy resources, including wind and
16		photovoltaic generation, based upon an assessment
17		of the prices paid for renewable energy credits
18		through programs and procurements conducted
19		pursuant to subsection (c) of Section 1-75 of this
20		Act, and the additional storage necessary to
21		produce the same or similar capability of matching
22		customer usage patterns.
23		(F) The procurements described in this paragraph (3),
24		including, but not limited to, the execution of all
25		contracts procured, shall be completed no later than
26		December 3, 2021. The procurement and plan approval

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1		processes required by this paragraph (3) shall be
2		conducted in conjunction with the procurement and plan
3		approval processes required by Section 16-111.5 of the
4		Public Utilities Act, to the extent practicable. However,
5		the Agency and Commission may, as appropriate, modify the
6		various dates and timelines under this subparagraph and
7		subparagraphs (D) and (E) of this paragraph (3) to meet
8		the December 3, 2021 contract execution deadline.
9		Following the completion of such procurements, and
10		consistent with this paragraph (3), the Agency shall
11		calculate the payments to be made under each contract in a
12		timely fashion.
13		(F-1) Costs incurred by the electric utility pursuant
14		to a contract authorized by this subsection (d-10) shall
15		be deemed prudently incurred and reasonable in amount, and
16		the electric utility shall be entitled to full cost
17		recovery pursuant to a tariff or tariffs filed with the
18		Commission.
19		(G) The counterparty electric utility shall retire all
20		carbon mitigation credits used to comply with the
21		requirements of this subsection (d-10).
22		(H) If a carbon-free energy resource is sold to
23		another owner, the rights, obligations, and commitments
24		under this subsection (d-10) shall continue to the
25		subsequent owner.
26		(I) This subsection (d-10) shall become inoperative on

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1		January 1, 2028.
2		(e) The draft procurement plans are subject to public
3		comment, as required by Section 16-111.5 of the Public
4		Utilities Act.
5		(f) The Agency shall submit the final procurement plan to
6		the Commission. The Agency shall revise a procurement plan if
7		the Commission determines that it does not meet the standards
8		set forth in Section 16-111.5 of the Public Utilities Act.
9		(g) The Agency shall assess fees to each affected utility
10		to recover the costs incurred in preparation of the annual
11		procurement plan for the utility.
12		(h) The Agency shall assess fees to each bidder to recover
13		the costs incurred in connection with a competitive
14		procurement process.
15		(i) A renewable energy credit, carbon emission credit,
16		zero emission credit, or carbon mitigation credit can only be
17		used once to comply with a single portfolio or other standard
18		as set forth in subsection (c), subsection (d), or subsection
19		(d-5) of this Section, respectively. A renewable energy
20		credit, carbon emission credit, zero emission credit, or
21		carbon mitigation credit cannot be used to satisfy the
22		requirements of more than one standard. If more than one type
23		of credit is issued for the same megawatt hour of energy, only
24		one credit can be used to satisfy the requirements of a single
25		standard. After such use, the credit must be retired together
26		with any other credits issued for the same megawatt hour of

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1		energy.
2		(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
3		102-662, eff. 9-15-21.)