Bill Text: IL HB4687 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Public Utilities Act. Removes provisions related to the Adjustable Block Program and restores certain provisions of the Act to the form in which they existed before their amendment before both Public Act 99-906 and Public Act 102-662. Amends the Environmental Protection Act. Restores certain provisions of the Act regarding greenhouse gas emissions to the form in which they existed before their amendment by Public Act 102-662. Makes conforming changes in various Acts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4687 Detail]

Download: Illinois-2023-HB4687-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4687 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
20 ILCS 730/5-55
20 ILCS 730/5-60
20 ILCS 3855/1-5
20 ILCS 3855/1-20
20 ILCS 3855/1-56
20 ILCS 3855/1-75
20 ILCS 3855/1-129
35 ILCS 55/15
55 ILCS 5/5-12020
220 ILCS 5/8-218
220 ILCS 5/16-108
220 ILCS 5/16-111.5
415 ILCS 5/9.15
Amends the Public Utilities Act. Removes provisions related to the Adjustable Block Program and restores certain provisions of the Act to the form in which they existed before their amendment before both Public Act 99-906 and Public Act 102-662. Amends the Environmental Protection Act. Restores certain provisions of the Act regarding greenhouse gas emissions to the form in which they existed before their amendment by Public Act 102-662. Makes conforming changes in various Acts.
LRB103 36052 LNS 66139 b
A BILL FOR
HB4687 LRB103 36052 LNS 66139 b
AN ACT concerning energy.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Energy Transition Act is amended by
changing Sections 5-55 and 5-60 as follows:
(20 ILCS 730/5-55)
(Section scheduled to be repealed on September 15, 2045)
Sec. 5-55. Clean Energy Primes Contractor Accelerator
Program.
(a) As used in this Section:
"Approved vendor" means the definition of that term used
and as may be updated by the Illinois Power Agency.
"Minority business" means a minority-owned business as
defined in Section 2 of the Business Enterprise for
Minorities, Women, and Persons with Disabilities Act.
"Minority Business Enterprise certification" means the
certification or recognition certification affidavit from the
State of Illinois Department of Central Management Services
Business Enterprise Program or a program with equivalent
requirements.
"Program" means the Clean Energy Primes Contractor
Accelerator Program.
"Returning resident" has the meaning given to that term in

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Section 5-50 of this Act.
(b) Subject to appropriation, the Department shall
develop, and through a Primes Program Administrator and
Regional Primes Program Leads described in this Section,
administer the Clean Energy Primes Contractor Accelerator
Program. The Program shall be administered in 3 program
delivery areas: the Northern Illinois Program Delivery Area
covering Northern Illinois, the Central Illinois Program
Delivery Area covering Central Illinois, and the Southern
Illinois Program Delivery Area covering Southern Illinois.
Prior to developing the Program, the Department shall solicit
public comments, with a 30-day comment period, to gather input
on Program implementation and associated community outreach
options.
(c) The Program shall be available to selected contractors
who best meet the following criteria:
(1) 2 or more years of experience in a clean energy or
a related contracting field;
(2) at least $5,000 in annual business; and
(3) a substantial and demonstrated commitment of
investing in and partnering with individuals and
institutions in equity investment eligible communities.
(c-5) The Department shall develop scoring criteria to
select contractors for the Program, which shall consider:
(1) projected hiring and industry job creation,
including wage and benefit expectations;

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(2) a clear vision of strategic business growth and
how increased capitalization would benefit the business;
(3) past project work quality and demonstration of
technical knowledge;
(4) capacity the applicant is anticipated to bring to
project development;
(5) willingness to assume risk;
(6) anticipated revenues from future projects;
(7) history of commitment to advancing equity as
demonstrated by, among other things, employment of or
ownership by equity investment eligible persons and a
history of partnership with equity focused community
organizations or government programs; and
(8) business models that build wealth in the larger
underserved community.
Applicants for Program participation shall be allowed to
reapply for a future cohort if they are not selected, and the
Primes Program Administrator shall inform each applicant of
this option.
(d) The Department, in consultation with the Primes
Program Administrator and Regional Primes Program Leads, shall
select a new cohort of participant contractors from each
Program Delivery Area every 18 months. Each regional cohort
shall include between 3 and 5 participants. The Program shall
cap contractors in the energy efficiency sector at 50% of
available cohort spots and 50% of available grants and loans,

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if possible.
(e) The Department shall hire a Primes Program
Administrator with experience in leading a large
contractor-based business in Illinois; coaching and mentoring;
the Illinois clean energy industry; and working with equity
investment eligible community members, organizations, and
businesses.
(f) The Department shall select 3 Regional Primes Program
Leads who shall report directly to the Primes Program
Administrator. The Regional Primes Program Leads shall be
located within their Program Delivery Area and have experience
in leading a large contractor-based business in Illinois;
coaching and mentoring; the Illinois clean energy industry;
developing relationships with companies in the Program
Delivery Area; and working with equity investment eligible
community members, organizations, and businesses.
(g) The Department may determine how Program elements will
be delivered or may contract with organizations with
experience delivering the Program elements described in
subsection (h) of this Section.
(h) The Clean Energy Primes Contractor Accelerator Program
shall provide participants with:
(1) a 5-year, 6-month progressive course of one-on-one
coaching to assist each participant in developing an
achievable 5-year business plan, including review of
monthly metrics, and advice on achieving participant's

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goals;
(2) operational support grants not to exceed
$1,000,000 annually to support the growth of participant
contractors with access to capital for upfront project
costs and pre-development funding, among others. The
amount of the grant shall be based on anticipated project
size and scope;
(3) business coaching based on the participant's
needs;
(4) a mentorship of approximately 2 years provided by
a qualified company in the participant's field;
(5) access to Clean Energy Contractor Incubator
Program services;
(6) assistance with applying for Minority Business
Enterprise certification and other relevant certifications
and approved vendor status for programs offered by
utilities or other entities;
(7) assistance with preparing bids and Request for
Proposal applications;
(8) opportunities to be listed in any relevant
directories and databases organized by the Department of
Central Management Services;
(9) opportunities to connect with participants in
other Department programs;
(10) assistance connecting with and initiating
participation in the Illinois Power Agency's Adjustable

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Block program, the Illinois Solar for All Program, and
utility programs; and
(11) financial development assistance programs such as
zero-interest and low-interest loans with the Climate Bank
as established by Article 850 of the Illinois Finance
Authority Act or a comparable financing mechanism. The
Illinois Finance Authority shall retain authority to
determine loan repayment terms and conditions.
(i) The Primes Program Administrator shall:
(1) collect and report performance metrics as
described in this Section;
(2) review and assess:
(i) participant work plans and annual goals; and
(ii) the mentorship program, including approved
mentor companies and their stipend awards; and
(3) work with the Regional Primes Program Leads to
publicize the Program; design and implement a mentorship
program; and ensure participants are quickly on-boarded.
(j) The Regional Primes Program Leads shall:
(1) publicize the Program; the budget shall include
funds to pay community-based organizations with a track
record of working with equity investment eligible
communities to complete this work;
(2) recruit qualified Program applicants;
(3) assist Program applicants with the application
process;

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(4) introduce participants to the Program offerings;
(5) conduct entry and annual assessments with
participants to identify training, coaching, and other
Program service needs;
(6) assist participants in developing goals on entry
and annually, and assessing progress toward meeting the
goals;
(7) establish a metric reporting system with each
participant and track the metrics for progress against the
contractor's work plan and Program goals;
(8) assist participants in receiving their Minority
Business Enterprise certification and any other relevant
certifications and approved vendor statuses;
(9) match participants with Clean Energy Contractor
Incubator Program offerings and individualized expert
coaching, including training on working with returning
residents and companies that employ them;
(10) pair participants with a mentor company;
(11) facilitate connections between participants and
potential subcontractors and employees;
(12) dispense a participant's awarded operational
grant funding;
(13) connect participants to zero-interest and
low-interest loans from the Climate Bank as established by
Article 850 of the Illinois Finance Authority Act or a
comparable financing mechanism;

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(14) encourage participants to apply for appropriate
State and private business opportunities;
(15) review a participant's progress and make a
recommendation to the Department about whether the
participant should continue in the Program, be considered
a Program graduate, and whether adjustments should be made
to a participant's grant funding, loans, and related
services;
(16) solicit information from participants, which
participants shall be required to provide, necessary to
understand the participant's business, including financial
and income information, certifications that the
participant is seeking to obtain, and ownership, employee,
and subcontractor data, including compensation, length of
service, and demographics; and
(17) other duties as required.
(k) Performance metrics. The Primes Program Administrator
and Regional Primes Program Leads shall collaborate to collect
and report the following metrics quarterly to the Department
and Advisory Council:
(1) demographic information on cohort recruiting and
formation, including racial, gender, geographic
distribution data, and data on the number and percentage
of R3 residents, environmental justice community
residents, foster care alumni, and formerly convicted
persons who are cohort applicants and admitted

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participants;
(2) participant contractor engagement in other
Illinois clean energy programs such as the Adjustable
Block program, Illinois Solar for All Program, and the
utility-run energy efficiency and electric vehicle
programs;
(3) retention of participants in each cohort;
(4) total projects bid, started, and completed by
participants, including information about revenue, hiring,
and subcontractor relationships with projects;
(5) certifications issued;
(6) employment data for contractor hires and industry
jobs created, including demographic, salary, length of
service, and geographic data;
(7) grants and loans distributed; and
(8) participant satisfaction with the Program.
The metrics in paragraphs (2), (4), and (6) shall be
collected from Program participants and graduates for 10 years
from their entrance into the Program to help the Department
and Program Administrators understand the Program's long-term
effect.
Data should be anonymized where needed to protect
participant privacy.
The Department shall make such reports publicly available
on its website.
(l) Mentorship Program.

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(1) The Regional Primes Program Leads shall recruit,
and the Primes Program Administrator shall select, with
approval from the Department, private companies with the
following qualifications to mentor participants and assist
them in succeeding in the clean energy industry:
(i) excellent standing with state clean energy
programs;
(ii) 4 or more years of experience in their field;
and
(iii) a proven track record of success in their
field.
(2) Mentor companies may receive a stipend, determined
by the Department, for their participation. Mentor
companies may identify what level of stipend they require.
(3) The Primes Program Administrator shall develop
guidelines for mentor company-mentee profit sharing or
purchased services agreements.
(4) The Regional Primes Program Leads shall:
(i) collaborate with mentor companies and
participants to create a plan for ongoing contact such
as on-the-job training, site walkthroughs, business
process and structure walkthroughs, quality assurance
and quality control reviews, and other relevant
activities;
(ii) recommend the mentor company-mentee pairings
and associated mentor company stipends for approval;

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(iii) conduct an annual review of each mentor
company-mentee pairing and recommend whether the
pairing continues for a second year and the level of
stipend that is appropriate. The review shall also
ensure that any profit sharing and purchased services
agreements adhere to the guidelines established by the
Primes Program Administrator.
(5) Contractors may request reassignment to a new
mentor company.
(m) Disparity study. The Program Administrator shall
cooperate with the Illinois Power Agency in the conduct of a
disparity study, as described in subsection (c-15) of Section
1-75 of the Illinois Power Agency Act, and in the effectuation
of appropriate remedies necessary to address any
discrimination that such study may find. Potential remedies
shall include, but not be limited to, race-conscious remedies
to rapidly eliminate discrimination faced by minority
businesses and works in the industry this Program serves,
consistent with the law. Remedies shall be developed through
consultation with individuals, companies, and organizations
that have expertise on discrimination faced in the market and
potential legally permissible remedies for addressing it.
Notwithstanding any other requirement of this Section, the
Program Administrator shall modify program participation
criteria or goals as soon as the report has been published, in
such a way as is consistent with state and federal law, to

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rapidly eliminate discrimination on minority businesses and
workers in the industry this Program serves by setting
standards for Program participation. This study will be paid
for with funds from the Energy Transition Assistance Fund or
any other lawful source.
(n) Program budget.
(1) The Department may allocate up to $3,000,000
annually to the Primes Program Administrator for each of
the 3 regional budgets from the Energy Transition
Assistance Fund.
(2) The Primes Program Administrator shall work with
the Illinois Finance Authority and the Climate Bank as
established by Article 850 of the Illinois Finance
Authority Act or comparable financing institution so that
loan loss reserves may be sufficient to underwrite
$7,000,000 in low-interest loans in each of the 3 Program
delivery areas.
(3) Any grant and loan funding shall be made available
to participants in a timely fashion.
(Source: P.A. 102-662, eff. 9-15-21.)
(20 ILCS 730/5-60)
(Section scheduled to be repealed on September 15, 2045)
Sec. 5-60. Jobs and Environmental Justice Grant Program.
(a) In order to provide upfront capital to support the
development of projects, businesses, community organizations,

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and jobs creating opportunity for historically disadvantaged
populations, and to provide seed capital to support community
ownership of renewable energy projects, the Department of
Commerce and Economic Opportunity shall create and administer
a Jobs and Environmental Justice Grant Program. The grant
program shall be designed to help remove barriers to project,
community, and business development caused by a lack of
capital.
(b) The grant program shall provide grant awards of up to
$1,000,000 per application to support the development of
renewable energy resources as defined in Section 1-10 of the
Illinois Power Agency Act, and energy efficiency measures as
defined in Section 8-103B of the Public Utilities Act. The
amount of a grant award shall be based on a project's size and
scope. Grants shall be provided upfront, in advance of other
incentives, to provide businesses, organizations, and
community groups with capital needed to plan, develop, and
execute a project. Grants shall be designed to coordinate with
and supplement existing incentive programs, such as the
Adjustable Block program, the Illinois Solar for All Program,
the community renewable generation projects, and renewable
energy procurements as described in the Illinois Power Agency
Act, as well as utility energy efficiency measures as
described in Section 8-103B of the Public Utilities Act.
(c) The Jobs and Environmental Justice Grant Program shall
include 2 subprograms:

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(1) the Equitable Energy Future Grant Program; and
(2) the Community Solar Energy Sovereignty Grant
Program.
(d) The Equitable Energy Future Grant Program is designed
to provide seed funding and pre-development funding
opportunities for equity eligible contractors.
(1) The Equitable Energy Future Grant shall be awarded
to businesses and nonprofit organizations for costs
related to the following activities and project needs:
(i) planning and project development, including
costs for professional services such as architecture,
design, engineering, auditing, consulting, and
developer services;
(ii) project application, deposit, and approval;
(iii) purchasing and leasing of land;
(iv) permitting and zoning;
(v) interconnection application costs and fees,
studies, and expenses;
(vi) equipment and supplies;
(vii) community outreach, marketing, and
engagement; and
(viii) staff and operations expenses.
(2) Grants shall be awarded to projects that most
effectively provide opportunities for equity eligible
contractors and equity investment eligible communities,
and should consider the following criteria:

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(i) projects that provide community benefits,
which are projects that have one or more of the
following characteristics: (A) greater than 50% of the
project's energy provided or saved benefits low-income
residents, or (B) the project benefits not-for-profit
organizations providing services to low-income
households, affordable housing owners, or
community-based limited liability companies providing
services to low-income households;
(ii) projects that are located in equity
investment eligible communities;
(iii) projects that provide on-the-job training;
(iv) projects that contract with contractors who
are participating or have participated in the Clean
Energy Contractor Incubator Program, Clean Energy
Primes Contractor Accelerator Program, or similar
programs; and
(v) projects employ a minimum of 51% of its
workforce from participants and graduates of the Clean
Jobs Workforce Network Program, Illinois Climate Works
Preapprenticeship Program, and Returning Residents
Clean Jobs Training Program.
(3) Grants shall be awarded to applicants that meet
the following criteria:
(i) are equity eligible contractors per the equity
accountability systems described in subsection (c-10)

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of Section 1-75 of the Illinois Power Agency Act, or
meet the equity building criteria in paragraph (9.5)
of subsection (g) of Section 8-103B of the Public
Utilities Act; and
(ii) provide demonstrable proof of a historical or
future, and persisting, long-term partnership with the
community in which the project will be located.
(e) The Community Solar Energy Sovereignty Grant Program
shall be designed to support the pre-development and
development of community solar projects that promote community
ownership and energy sovereignty.
(1) Grants shall be awarded to applicants that best
demonstrate the ability and intent to create community
ownership and other local community benefits, including
local community wealth building via community renewable
generation projects. Grants shall be prioritized to
applicants for whom:
(i) the proposed project is located in and
supporting an equity investment eligible community or
communities; and
(ii) the proposed project provides additional
benefits for participating low-income households.
(2) Grant funds shall be awarded to support project
pre-development work and may also be awarded to support
the development of programs and entities to assist in the
long-term governance, management, and maintenance of

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community solar projects, such as community solar
cooperatives. For example, funds may be awarded for:
(i) early stage project planning;
(ii) project team organization;
(iii) site identification;
(iv) organizing a project business model and
securing financing;
(v) procurement and contracting;
(vi) customer outreach and enrollment;
(vii) preliminary site assessments;
(viii) development of cooperative or community
ownership model; and
(ix) development of project models that allocate
benefits to equity investment eligible communities.
(3) Grant recipients shall submit reports to the
Department at the end of the grant term on the activities
pursued under their grant and any lessons learned for
publication on the Department's website so that other
energy sovereignty projects may learn from their
experience.
(4) Eligible applicants shall include community-based
organizations, as defined in the Illinois Power Agency's
long-term renewable resources procurement plan, or
technical service providers working in direct partnership
with community-based organizations.
(5) The amount of a grant shall be based on a projects'

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size and scope. Grants shall allow for a significant
portion, or the entirety, of the grant value to be made
upfront, in advance of other incentives, to ensure
businesses and organizations have the capital needed to
plan, develop, and execute a project.
(f) The application process for both subprograms shall not
be burdensome on applicants, nor require extensive technical
knowledge, and shall be able to be completed on less than 4
standard letter-sized pages.
(g) These grant subprograms may be coordinated with
low-interest and no-interest financing opportunities offered
through the Clean Energy Jobs and Justice Fund.
(h) The grant subprograms may have a budget of up to
$34,000,000 per year. No more than 25% of the allocated budget
shall go to the Community Solar Energy Sovereignty Grant
Program.
(Source: P.A. 102-662, eff. 9-15-21.)
Section 10. The Illinois Power Agency Act is amended by
changing Sections 1-5, 1-20, 1-56, 1-75, and 1-129 as follows:
(20 ILCS 3855/1-5)
Sec. 1-5. Legislative declarations and findings. The
General Assembly finds and declares:
(1) The health, welfare, and prosperity of all
Illinois residents require the provision of adequate,

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reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(1.5) To provide the highest quality of life for the
residents of Illinois and to provide for a clean and
healthy environment, it is the policy of this State to
rapidly transition to 100% clean energy by 2050.
(2) (Blank).
(3) (Blank).
(4) It is necessary to improve the process of
procuring electricity to serve Illinois residents, to
promote investment in energy efficiency and
demand-response measures, and to maintain and support
development of clean coal technologies, generation
resources that operate at all hours of the day and under
all weather conditions, zero emission facilities, and
renewable resources.
(5) Procuring a diverse electricity supply portfolio
will ensure the lowest total cost over time for adequate,
reliable, efficient, and environmentally sustainable
electric service.
(6) Including renewable resources and zero emission
credits from zero emission facilities in that portfolio
will reduce long-term direct and indirect costs to
consumers by decreasing environmental impacts and by
avoiding or delaying the need for new generation,

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transmission, and distribution infrastructure. Developing
new renewable energy resources in Illinois, including
brownfield solar projects and community solar projects,
will help to diversify Illinois electricity supply, avoid
and reduce pollution, reduce peak demand, and enhance
public health and well-being of Illinois residents.
(7) Developing community solar projects in Illinois
will help to expand access to renewable energy resources
to more Illinois residents.
(8) Developing brownfield solar projects in Illinois
will help return blighted or contaminated land to
productive use while enhancing public health and the
well-being of Illinois residents, including those in
environmental justice communities.
(9) Energy efficiency, demand-response measures, zero
emission energy, and renewable energy are resources
currently underused in Illinois. These resources should be
used, when cost effective, to reduce costs to consumers,
improve reliability, and improve environmental quality and
public health.
(10) The State should encourage the use of advanced
clean coal technologies that capture and sequester carbon
dioxide emissions to advance environmental protection
goals and to demonstrate the viability of coal and
coal-derived fuels in a carbon-constrained economy.
(10.5) The State should encourage the development of

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interregional high voltage direct current (HVDC)
transmission lines that benefit Illinois. All ratepayers
in the State served by the regional transmission
organization where the HVDC converter station is
interconnected benefit from the long-term price stability
and market access provided by interregional HVDC
transmission facilities. The benefits to Illinois include:
reduction in wholesale power prices; access to lower-cost
markets; enabling the integration of additional renewable
generating units within the State through near
instantaneous dispatchability and the provision of
ancillary services; creating good-paying union jobs in
Illinois; and, enhancing grid reliability and climate
resilience via HVDC facilities that are installed
underground.
(10.6) The health, welfare, and safety of the people
of the State are advanced by developing new HVDC
transmission lines predominantly along transportation
rights-of-way, with an HVDC converter station that is
located in the service territory of a public utility as
defined in Section 3-105 of the Public Utilities Act
serving more than 3,000,000 retail customers, and with a
project labor agreement as defined in Section 1-10 of this
Act.
(11) The General Assembly enacted Public Act 96-0795
to reform the State's purchasing processes, recognizing

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that government procurement is susceptible to abuse if
structural and procedural safeguards are not in place to
ensure independence, insulation, oversight, and
transparency.
(12) The principles that underlie the procurement
reform legislation apply also in the context of power
purchasing.
(13) To ensure that the benefits of installing
renewable resources are available to all Illinois
residents and located across the State, subject to
appropriation, it is necessary for the Agency to provide
public information and educational resources on how
residents can benefit from the expansion of renewable
energy in Illinois and participate in the Illinois Solar
for All Program established in Section 1-56, the
Adjustable Block program established in Section 1-75, the
job training programs established by paragraph (1) of
subsection (a) of Section 16-108.12 of the Public
Utilities Act, and the programs and resources established
by the Energy Transition Act.
The General Assembly therefore finds that it is necessary
to create the Illinois Power Agency and that the goals and
objectives of that Agency are to accomplish each of the
following:
(A) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and

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environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000
customers in Illinois and for small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served
less than 100,000 customers in Illinois and (ii) request a
procurement plan for their Illinois jurisdictional load.
The procurement plan shall be updated on an annual basis
and shall include renewable energy resources and,
beginning with the delivery year commencing June 1, 2017,
zero emission credits from zero emission facilities
sufficient to achieve the standards specified in this Act.
(B) Conduct the competitive procurement processes
identified in this Act.
(C) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(D) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(E) Ensure that the process of power procurement is
conducted in an ethical and transparent fashion, immune
from improper influence.

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(F) Continue to review its policies and practices to
determine how best to meet its mission of providing the
lowest cost power to the greatest number of people, at any
given point in time, in accordance with applicable law.
(G) Operate in a structurally insulated, independent,
and transparent fashion so that nothing impedes the
Agency's mission to secure power at the best prices the
market will bear, provided that the Agency meets all
applicable legal requirements.
(H) Implement renewable energy procurement and
training programs throughout the State to diversify
Illinois electricity supply, improve reliability, avoid
and reduce pollution, reduce peak demand, and enhance
public health and well-being of Illinois residents,
including low-income residents.
(Source: P.A. 102-662, eff. 9-15-21.)
(20 ILCS 3855/1-20)
Sec. 1-20. General powers and duties of the Agency.
(a) The Agency is authorized to do each of the following:
(1) Develop electricity procurement plans to ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability, for electric utilities that on December
31, 2005 provided electric service to at least 100,000

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customers in Illinois and for small multi-jurisdictional
electric utilities that (A) on December 31, 2005 served
less than 100,000 customers in Illinois and (B) request a
procurement plan for their Illinois jurisdictional load.
Except as provided in paragraph (1.5) of this subsection
(a), the electricity procurement plans shall be updated on
an annual basis and shall include electricity generated
from renewable resources sufficient to achieve the
standards specified in this Act. Beginning with the
delivery year commencing June 1, 2017, develop procurement
plans to include zero emission credits generated from zero
emission facilities sufficient to achieve the standards
specified in this Act. Beginning with the delivery year
commencing on June 1, 2022, the Agency is authorized to
develop carbon mitigation credit procurement plans to
include carbon mitigation credits generated from
carbon-free energy resources sufficient to achieve the
standards specified in this Act.
(1.5) Develop a long-term renewable resources
procurement plan in accordance with subsection (c) of
Section 1-75 of this Act for renewable energy credits in
amounts sufficient to achieve the standards specified in
this Act for delivery years commencing June 1, 2017 and
for the programs and renewable energy credits specified in
Section 1-56 of this Act. Electricity procurement plans
for delivery years commencing after May 31, 2017, shall

HB4687 - 26 - LRB103 36052 LNS 66139 b
not include procurement of renewable energy resources.
(2) Conduct competitive procurement processes to
procure the supply resources identified in the electricity
procurement plan, pursuant to Section 16-111.5 of the
Public Utilities Act, and, for the delivery year
commencing June 1, 2017, conduct procurement processes to
procure zero emission credits from zero emission
facilities, under subsection (d-5) of Section 1-75 of this
Act. For the delivery year commencing June 1, 2022, the
Agency is authorized to conduct procurement processes to
procure carbon mitigation credits from carbon-free energy
resources, under subsection (d-10) of Section 1-75 of this
Act.
(2.5) Beginning with the procurement for the 2017
delivery year, conduct competitive procurement processes
and implement programs to procure renewable energy credits
identified in the long-term renewable resources
procurement plan developed and approved under subsection
(c) of Section 1-75 of this Act and Section 16-111.5 of the
Public Utilities Act.
(2.10) (Blank). Oversee the procurement by electric
utilities that served more than 300,000 customers in this
State as of January 1, 2019 of renewable energy credits
from new renewable energy facilities to be installed,
along with energy storage facilities, at or adjacent to
the sites of electric generating facilities that burned

HB4687 - 27 - LRB103 36052 LNS 66139 b
coal as their primary fuel source as of January 1, 2016 in
accordance with subsection (c-5) of Section 1-75 of this
Act.
(2.15) Oversee the procurement by electric utilities
of renewable energy credits from newly modernized or
retooled hydropower dams or dams that have been converted
to support hydropower generation.
(3) Develop electric generation and co-generation
facilities that use indigenous coal or renewable
resources, or both, financed with bonds issued by the
Illinois Finance Authority.
(4) Supply electricity from the Agency's facilities at
cost to one or more of the following: municipal electric
systems, governmental aggregators, or rural electric
cooperatives in Illinois.
(b) Except as otherwise limited by this Act, the Agency
has all of the powers necessary or convenient to carry out the
purposes and provisions of this Act, including without
limitation, each of the following:
(1) To have a corporate seal, and to alter that seal at
pleasure, and to use it by causing it or a facsimile to be
affixed or impressed or reproduced in any other manner.
(2) To use the services of the Illinois Finance
Authority necessary to carry out the Agency's purposes.
(3) To negotiate and enter into loan agreements and
other agreements with the Illinois Finance Authority.

HB4687 - 28 - LRB103 36052 LNS 66139 b
(4) To obtain and employ personnel and hire
consultants that are necessary to fulfill the Agency's
purposes, and to make expenditures for that purpose within
the appropriations for that purpose.
(5) To purchase, receive, take by grant, gift, devise,
bequest, or otherwise, lease, or otherwise acquire, own,
hold, improve, employ, use, and otherwise deal in and
with, real or personal property whether tangible or
intangible, or any interest therein, within the State.
(6) To acquire real or personal property, whether
tangible or intangible, including without limitation
property rights, interests in property, franchises,
obligations, contracts, and debt and equity securities,
and to do so by the exercise of the power of eminent domain
in accordance with Section 1-21; except that any real
property acquired by the exercise of the power of eminent
domain must be located within the State.
(7) To sell, convey, lease, exchange, transfer,
abandon, or otherwise dispose of, or mortgage, pledge, or
create a security interest in, any of its assets,
properties, or any interest therein, wherever situated.
(8) To purchase, take, receive, subscribe for, or
otherwise acquire, hold, make a tender offer for, vote,
employ, sell, lend, lease, exchange, transfer, or
otherwise dispose of, mortgage, pledge, or grant a
security interest in, use, and otherwise deal in and with,

HB4687 - 29 - LRB103 36052 LNS 66139 b
bonds and other obligations, shares, or other securities
(or interests therein) issued by others, whether engaged
in a similar or different business or activity.
(9) To make and execute agreements, contracts, and
other instruments necessary or convenient in the exercise
of the powers and functions of the Agency under this Act,
including contracts with any person, including personal
service contracts, or with any local government, State
agency, or other entity; and all State agencies and all
local governments are authorized to enter into and do all
things necessary to perform any such agreement, contract,
or other instrument with the Agency. No such agreement,
contract, or other instrument shall exceed 40 years.
(10) To lend money, invest and reinvest its funds in
accordance with the Public Funds Investment Act, and take
and hold real and personal property as security for the
payment of funds loaned or invested.
(11) To borrow money at such rate or rates of interest
as the Agency may determine, issue its notes, bonds, or
other obligations to evidence that indebtedness, and
secure any of its obligations by mortgage or pledge of its
real or personal property, machinery, equipment,
structures, fixtures, inventories, revenues, grants, and
other funds as provided or any interest therein, wherever
situated.
(12) To enter into agreements with the Illinois

HB4687 - 30 - LRB103 36052 LNS 66139 b
Finance Authority to issue bonds whether or not the income
therefrom is exempt from federal taxation.
(13) To procure insurance against any loss in
connection with its properties or operations in such
amount or amounts and from such insurers, including the
federal government, as it may deem necessary or desirable,
and to pay any premiums therefor.
(14) To negotiate and enter into agreements with
trustees or receivers appointed by United States
bankruptcy courts or federal district courts or in other
proceedings involving adjustment of debts and authorize
proceedings involving adjustment of debts and authorize
legal counsel for the Agency to appear in any such
proceedings.
(15) To file a petition under Chapter 9 of Title 11 of
the United States Bankruptcy Code or take other similar
action for the adjustment of its debts.
(16) To enter into management agreements for the
operation of any of the property or facilities owned by
the Agency.
(17) To enter into an agreement to transfer and to
transfer any land, facilities, fixtures, or equipment of
the Agency to one or more municipal electric systems,
governmental aggregators, or rural electric agencies or
cooperatives, for such consideration and upon such terms
as the Agency may determine to be in the best interest of

HB4687 - 31 - LRB103 36052 LNS 66139 b
the residents of Illinois.
(18) To enter upon any lands and within any building
whenever in its judgment it may be necessary for the
purpose of making surveys and examinations to accomplish
any purpose authorized by this Act.
(19) To maintain an office or offices at such place or
places in the State as it may determine.
(20) To request information, and to make any inquiry,
investigation, survey, or study that the Agency may deem
necessary to enable it effectively to carry out the
provisions of this Act.
(21) To accept and expend appropriations.
(22) To engage in any activity or operation that is
incidental to and in furtherance of efficient operation to
accomplish the Agency's purposes, including hiring
employees that the Director deems essential for the
operations of the Agency.
(23) To adopt, revise, amend, and repeal rules with
respect to its operations, properties, and facilities as
may be necessary or convenient to carry out the purposes
of this Act, subject to the provisions of the Illinois
Administrative Procedure Act and Sections 1-22 and 1-35 of
this Act.
(24) To establish and collect charges and fees as
described in this Act.
(25) To conduct competitive gasification feedstock

HB4687 - 32 - LRB103 36052 LNS 66139 b
procurement processes to procure the feedstocks for the
clean coal SNG brownfield facility in accordance with the
requirements of Section 1-78 of this Act.
(26) To review, revise, and approve sourcing
agreements and mediate and resolve disputes between gas
utilities and the clean coal SNG brownfield facility
pursuant to subsection (h-1) of Section 9-220 of the
Public Utilities Act.
(27) To request, review and accept proposals, execute
contracts, purchase renewable energy credits and otherwise
dedicate funds from the Illinois Power Agency Renewable
Energy Resources Fund to create and carry out the
objectives of the Illinois Solar for All Program in
accordance with Section 1-56 of this Act.
(28) (Blank). To ensure Illinois residents and
business benefit from programs administered by the Agency
and are properly protected from any deceptive or
misleading marketing practices by participants in the
Agency's programs and procurements.
(c) (Blank). In conducting the procurement of electricity
or other products, beginning January 1, 2022, the Agency shall
not procure any products or services from persons or
organizations that are in violation of the Displaced Energy
Workers Bill of Rights, as provided under the Energy Community
Reinvestment Act at the time of the procurement event or fail
to comply the labor standards established in subparagraph (Q)

HB4687 - 33 - LRB103 36052 LNS 66139 b
of paragraph (1) of subsection (c) of Section 1-75.
(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
(20 ILCS 3855/1-56)
Sec. 1-56. Illinois Power Agency Renewable Energy
Resources Fund; Illinois Solar for All Program.
(a) The Illinois Power Agency Renewable Energy Resources
Fund is created as a special fund in the State treasury.
(b) The Illinois Power Agency Renewable Energy Resources
Fund shall be administered by the Agency as described in this
subsection (b), provided that the changes to this subsection
(b) made by Public Act 99-906 this amendatory Act of the 99th
General Assembly shall not interfere with existing contracts
under this Section.
(1) The Illinois Power Agency Renewable Energy
Resources Fund shall be used to purchase renewable energy
credits according to any approved procurement plan
developed by the Agency prior to June 1, 2017.
(2) The Illinois Power Agency Renewable Energy
Resources Fund shall also be used to create the Illinois
Solar for All Program, which provides incentives for
low-income distributed generation and community solar
projects, and other associated approved expenditures. The
objectives of the Illinois Solar for All Program are to
bring photovoltaics to low-income communities in this
State in a manner that maximizes the development of new

HB4687 - 34 - LRB103 36052 LNS 66139 b
photovoltaic generating facilities, to create a long-term,
low-income solar marketplace throughout this State, to
integrate, through interaction with stakeholders, with
existing energy efficiency initiatives, and to minimize
administrative costs. The Illinois Solar for All Program
shall be implemented in a manner that seeks to minimize
administrative costs, and maximize efficiencies and
synergies available through coordination with similar
initiatives, including the Adjustable Block program
described in subparagraphs (K) through (M) of paragraph
(1) of subsection (c) of Section 1-75, energy efficiency
programs, job training programs, and community action
agencies. The Agency shall strive to ensure that renewable
energy credits procured through the Illinois Solar for All
Program and each of its subprograms are purchased from
projects across the breadth of low-income and
environmental justice communities in Illinois, including
both urban and rural communities, are not concentrated in
a few communities, and do not exclude particular
low-income or environmental justice communities. The
Agency shall include a description of its proposed
approach to the design, administration, implementation and
evaluation of the Illinois Solar for All Program, as part
of the long-term renewable resources procurement plan
authorized by subsection (c) of Section 1-75 of this Act,
and the program shall be designed to grow the low-income

HB4687 - 35 - LRB103 36052 LNS 66139 b
solar market. The Agency or utility, as applicable, shall
purchase renewable energy credits from the (i)
photovoltaic distributed renewable energy generation
projects and (ii) community solar projects that are
procured under procurement processes authorized by the
long-term renewable resources procurement plans approved
by the Commission.
The Illinois Solar for All Program shall include the
program offerings described in subparagraphs (A) through
(E) of this paragraph (2), which the Agency shall
implement through contracts with third-party providers
and, subject to appropriation, pay the approximate amounts
identified using monies available in the Illinois Power
Agency Renewable Energy Resources Fund. Each contract that
provides for the installation of solar facilities shall
provide that the solar facilities will produce energy and
economic benefits, at a level determined by the Agency to
be reasonable, for the participating low-income low income
customers. The monies available in the Illinois Power
Agency Renewable Energy Resources Fund and not otherwise
committed to contracts executed under subsection (i) of
this Section, as well as, in the case of the programs
described under subparagraphs (A) through (E) of this
paragraph (2), funding authorized pursuant to subparagraph
(O) of paragraph (1) of subsection (c) of Section 1-75 of
this Act, shall initially be allocated among the programs

HB4687 - 36 - LRB103 36052 LNS 66139 b
described in this paragraph (2), as follows: 35% of these
funds shall be allocated to programs described in
subparagraphs (A) and (E) of this paragraph (2), 40% of
these funds shall be allocated to programs described in
subparagraph (B) of this paragraph (2), and 25% of these
funds shall be allocated to programs described in
subparagraph (C) of this paragraph (2). The allocation of
funds among subparagraphs (A), (B), (C), and (E) of this
paragraph (2) may be changed if the Agency, after
receiving input through a stakeholder process, determines
incentives in subparagraphs (A), (B), (C), or (E) of this
paragraph (2) have not been adequately subscribed to fully
utilize available Illinois Solar for All Program funds.
Contracts that will be paid with funds in the Illinois
Power Agency Renewable Energy Resources Fund shall be
executed by the Agency. Contracts that will be paid with
funds collected by an electric utility shall be executed
by the electric utility.
Contracts under the Illinois Solar for All Program
shall include an approach, as set forth in the long-term
renewable resources procurement plans, to ensure the
wholesale market value of the energy is credited to
participating low-income customers or organizations and to
ensure tangible economic benefits flow directly to program
participants, except in the case of low-income
multi-family housing where the low-income customer does

HB4687 - 37 - LRB103 36052 LNS 66139 b
not directly pay for energy. Priority shall be given to
projects that demonstrate meaningful involvement of
low-income community members in designing the initial
proposals. Acceptable proposals to implement projects must
demonstrate the applicant's ability to conduct initial
community outreach, education, and recruitment of
low-income participants in the community. Projects must
include job training opportunities if available, with the
specific level of trainee usage to be determined through
the Agency's long-term renewable resources procurement
plan, and the Illinois Solar for All Program Administrator
shall coordinate with the job training programs described
in paragraph (1) of subsection (a) of Section 16-108.12 of
the Public Utilities Act and in the Energy Transition Act.
The Agency shall make every effort to ensure that
small and emerging businesses, particularly those located
in low-income and environmental justice communities, are
able to participate in the Illinois Solar for All Program.
These efforts may include, but shall not be limited to,
proactive support from the program administrator,
different or preferred access to subprograms and
administrator-identified customers or grassroots
education provider-identified customers, and different
incentive levels. The Agency shall report on progress and
barriers to participation of small and emerging businesses
in the Illinois Solar for All Program at least once a year.

HB4687 - 38 - LRB103 36052 LNS 66139 b
The report shall be made available on the Agency's website
and, in years when the Agency is updating its long-term
renewable resources procurement plan, included in that
Plan.
(A) Low-income single-family and small multifamily
solar incentive. This program will provide incentives
to low-income customers, either directly or through
solar providers, to increase the participation of
low-income households in photovoltaic on-site
distributed generation at residential buildings
containing one to 4 units. Companies participating in
this program that install solar panels shall commit to
hiring job trainees for a portion of their low-income
installations, and an administrator shall facilitate
partnering the companies that install solar panels
with entities that provide solar panel installation
job training. It is a goal of this program that a
minimum of 25% of the incentives for this program be
allocated to projects located within environmental
justice communities. Contracts entered into under this
paragraph may be entered into with an entity that will
develop and administer the program and shall also
include contracts for renewable energy credits from
the photovoltaic distributed generation that is the
subject of the program, as set forth in the long-term
renewable resources procurement plan. Additionally:

HB4687 - 39 - LRB103 36052 LNS 66139 b
(i) The Agency shall reserve a portion of this
program for projects that promote energy
sovereignty through ownership of projects by
low-income households, not-for-profit
organizations providing services to low-income
households, affordable housing owners, community
cooperatives, or community-based limited liability
companies providing services to low-income
households. Projects that feature energy ownership
should ensure that local people have control of
the project and reap benefits from the project
over and above energy bill savings. The Agency may
consider the inclusion of projects that promote
ownership over time or that involve partial
project ownership by communities, as promoting
energy sovereignty. Incentives for projects that
promote energy sovereignty may be higher than
incentives for equivalent projects that do not
promote energy sovereignty under this same
program.
(ii) Through its long-term renewable resources
procurement plan, the Agency shall consider
additional program and contract requirements to
ensure faithful compliance by applicants
benefiting from preferences for projects
designated to promote energy sovereignty. The

HB4687 - 40 - LRB103 36052 LNS 66139 b
Agency shall make every effort to enable solar
providers already participating in the Adjustable
Block-Program under subparagraph (K) of paragraph
(1) of subsection (c) of Section 1-75 of this Act,
and particularly solar providers developing
projects under item (i) of subparagraph (K) of
paragraph (1) of subsection (c) of Section 1-75 of
this Act to easily participate in the Low-Income
Distributed Generation Incentive program described
under this subparagraph (A), and vice versa. This
effort may include, but shall not be limited to,
utilizing similar or the same application systems
and processes, similar or the same forms and
formats of communication, and providing active
outreach to companies participating in one program
but not the other. The Agency shall report on
efforts made to encourage this cross-participation
in its long-term renewable resources procurement
plan.
(B) Low-Income Community Solar Project Initiative.
Incentives shall be offered to low-income customers,
either directly or through developers, to increase the
participation of low-income subscribers of community
solar projects. The developer of each project shall
identify its partnership with community stakeholders
regarding the location, development, and participation

HB4687 - 41 - LRB103 36052 LNS 66139 b
in the project, provided that nothing shall preclude a
project from including an anchor tenant that does not
qualify as low-income. Companies participating in this
program that develop or install solar projects shall
commit to hiring job trainees for a portion of their
low-income installations, and an administrator shall
facilitate partnering the companies that install solar
projects with entities that provide solar installation
and related job training. It is a goal of this program
that a minimum of 25% of the incentives for this
program be allocated to community photovoltaic
projects in environmental justice communities. The
Agency shall reserve a portion of this program for
projects that promote energy sovereignty through
ownership of projects by low-income households,
not-for-profit organizations providing services to
low-income households, affordable housing owners, or
community-based limited liability companies providing
services to low-income households. Projects that
feature energy ownership should ensure that local
people have control of the project and reap benefits
from the project over and above energy bill savings.
The Agency may consider the inclusion of projects that
promote ownership over time or that involve partial
project ownership by communities, as promoting energy
sovereignty. Incentives for projects that promote

HB4687 - 42 - LRB103 36052 LNS 66139 b
energy sovereignty may be higher than incentives for
equivalent projects that do not promote energy
sovereignty under this same program. Contracts entered
into under this paragraph may be entered into with
developers and shall also include contracts for
renewable energy credits related to the program.
(C) Incentives for non-profits and public
facilities. Under this program funds shall be used to
support on-site photovoltaic distributed renewable
energy generation devices to serve the load associated
with not-for-profit customers and to support
photovoltaic distributed renewable energy generation
that uses photovoltaic technology to serve the load
associated with public sector customers taking service
at public buildings. Companies participating in this
program that develop or install solar projects shall
commit to hiring job trainees for a portion of their
low-income installations, and an administrator shall
facilitate partnering the companies that install solar
projects with entities that provide solar installation
and related job training. Through its long-term
renewable resources procurement plan, the Agency shall
consider additional program and contract requirements
to ensure faithful compliance by applicants benefiting
from preferences for projects designated to promote
energy sovereignty. It is a goal of this program that

HB4687 - 43 - LRB103 36052 LNS 66139 b
at least 25% of the incentives for this program be
allocated to projects located in environmental justice
communities. Contracts entered into under this
paragraph may be entered into with an entity that will
develop and administer the program or with developers
and shall also include contracts for renewable energy
credits related to the program.
(D) (Blank).
(E) Low-income large multifamily solar incentive.
This program shall provide incentives to low-income
customers, either directly or through solar providers,
to increase the participation of low-income households
in photovoltaic on-site distributed generation at
residential buildings with 5 or more units. Companies
participating in this program that develop or install
solar projects shall commit to hiring job trainees for
a portion of their low-income installations, and an
administrator shall facilitate partnering the
companies that install solar projects with entities
that provide solar installation and related job
training. It is a goal of this program that a minimum
of 25% of the incentives for this program be allocated
to projects located within environmental justice
communities. The Agency shall reserve a portion of
this program for projects that promote energy
sovereignty through ownership of projects by

HB4687 - 44 - LRB103 36052 LNS 66139 b
low-income households, not-for-profit organizations
providing services to low-income households,
affordable housing owners, or community-based limited
liability companies providing services to low-income
households. Projects that feature energy ownership
should ensure that local people have control of the
project and reap benefits from the project over and
above energy bill savings. The Agency may consider the
inclusion of projects that promote ownership over time
or that involve partial project ownership by
communities, as promoting energy sovereignty.
Incentives for projects that promote energy
sovereignty may be higher than incentives for
equivalent projects that do not promote energy
sovereignty under this same program.
The requirement that a qualified person, as defined in
paragraph (1) of subsection (i) of this Section, install
photovoltaic devices does not apply to the Illinois Solar
for All Program described in this subsection (b).
In addition to the programs outlined in paragraphs (A)
through (E), the Agency and other parties may propose
additional programs through the Long-Term Renewable
Resources Procurement Plan developed and approved under
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. Additional programs may target
market segments not specified above and may also include

HB4687 - 45 - LRB103 36052 LNS 66139 b
incentives targeted to increase the uptake of
nonphotovoltaic technologies by low-income customers,
including energy storage paired with photovoltaics, if the
Commission determines that the Illinois Solar for All
Program would provide greater benefits to the public
health and well-being of low-income residents through also
supporting that additional program versus supporting
programs already authorized.
(3) Costs associated with the Illinois Solar for All
Program and its components described in paragraph (2) of
this subsection (b), including, but not limited to, costs
associated with procuring experts, consultants, and the
program administrator referenced in this subsection (b)
and related incremental costs, costs related to income
verification and facilitating customer participation in
the program, and costs related to the evaluation of the
Illinois Solar for All Program, may be paid for using
monies in the Illinois Power Agency Renewable Energy
Resources Fund, and funds allocated pursuant to
subparagraph (O) of paragraph (1) of subsection (c) of
Section 1-75, but the Agency or program administrator
shall strive to minimize costs in the implementation of
the program. The Agency or contracting electric utility
shall purchase renewable energy credits from generation
that is the subject of a contract under subparagraphs (A)
through (E) of paragraph (2) of this subsection (b), and

HB4687 - 46 - LRB103 36052 LNS 66139 b
may pay for such renewable energy credits through an
upfront payment per installed kilowatt of nameplate
capacity paid once the device is interconnected at the
distribution system level of the interconnecting utility
and verified as energized. Payments for renewable energy
credits shall be in exchange for all renewable energy
credits generated by the system during the first 15 years
of operation and shall be structured to overcome barriers
to participation in the solar market by the low-income
community. The incentives provided for in this Section may
be implemented through the pricing of renewable energy
credits where the prices paid for the credits are higher
than the prices from programs offered under subsection (c)
of Section 1-75 of this Act to account for the additional
capital necessary to successfully access targeted market
segments. The Agency or contracting electric utility shall
retire any renewable energy credits purchased under this
program and the credits shall count toward towards the
obligation under subsection (c) of Section 1-75 of this
Act for the electric utility to which the project is
interconnected, if applicable.
The Agency shall direct that up to 5% of the funds
available under the Illinois Solar for All Program to
community-based groups and other qualifying organizations
to assist in community-driven education efforts related to
the Illinois Solar for All Program, including general

HB4687 - 47 - LRB103 36052 LNS 66139 b
energy education, job training program outreach efforts,
and other activities deemed to be qualified by the Agency.
Grassroots education funding shall not be used to support
the marketing by solar project development firms and
organizations, unless such education provides equal
opportunities for all applicable firms and organizations.
(4) The Agency shall, consistent with the requirements
of this subsection (b), propose the Illinois Solar for All
Program terms, conditions, and requirements, including the
prices to be paid for renewable energy credits, and which
prices may be determined through a formula, through the
development, review, and approval of the Agency's
long-term renewable resources procurement plan described
in subsection (c) of Section 1-75 of this Act and Section
16-111.5 of the Public Utilities Act. In the course of the
Commission proceeding initiated to review and approve the
plan, including the Illinois Solar for All Program
proposed by the Agency, a party may propose an additional
low-income solar or solar incentive program, or
modifications to the programs proposed by the Agency, and
the Commission may approve an additional program, or
modifications to the Agency's proposed program, if the
additional or modified program more effectively maximizes
the benefits to low-income customers after taking into
account all relevant factors, including, but not limited
to, the extent to which a competitive market for

HB4687 - 48 - LRB103 36052 LNS 66139 b
low-income solar has developed. Following the Commission's
approval of the Illinois Solar for All Program, the Agency
or a party may propose adjustments to the program terms,
conditions, and requirements, including the price offered
to new systems, to ensure the long-term viability and
success of the program. The Commission shall review and
approve any modifications to the program through the plan
revision process described in Section 16-111.5 of the
Public Utilities Act.
(5) The Agency shall issue a request for
qualifications for a third-party program administrator or
administrators to administer all or a portion of the
Illinois Solar for All Program. The third-party program
administrator shall be chosen through a competitive bid
process based on selection criteria and requirements
developed by the Agency, including, but not limited to,
experience in administering low-income energy programs and
overseeing statewide clean energy or energy efficiency
services. If the Agency retains a program administrator or
administrators to implement all or a portion of the
Illinois Solar for All Program, each administrator shall
periodically submit reports to the Agency and Commission
for each program that it administers, at appropriate
intervals to be identified by the Agency in its long-term
renewable resources procurement plan, provided that the
reporting interval is at least quarterly. The third-party

HB4687 - 49 - LRB103 36052 LNS 66139 b
program administrator may be, but need not be, the same
administrator as for the Adjustable Block program
described in subparagraphs (K) through (M) of paragraph
(1) of subsection (c) of Section 1-75. The Agency, through
its long-term renewable resources procurement plan
approval process, shall also determine if individual
subprograms of the Illinois Solar for All Program are
better served by a different or separate Program
Administrator.
The third-party administrator's responsibilities
shall also include facilitating placement for graduates of
Illinois-based renewable energy-specific job training
programs, including the Clean Jobs Workforce Network
Program and the Illinois Climate Works Preapprenticeship
Program administered by the Department of Commerce and
Economic Opportunity and programs administered under
Section 16-108.12 of the Public Utilities Act. To increase
the uptake of trainees by participating firms, the
administrator shall also develop a web-based clearinghouse
for information available to both job training program
graduates and firms participating, directly or indirectly,
in Illinois solar incentive programs. The program
administrator shall also coordinate its activities with
entities implementing electric and natural gas
income-qualified energy efficiency programs, including
customer referrals to and from such programs, and connect

HB4687 - 50 - LRB103 36052 LNS 66139 b
prospective low-income solar customers with any existing
deferred maintenance programs where applicable.
(6) The long-term renewable resources procurement plan
shall also provide for an independent evaluation of the
Illinois Solar for All Program. At least every 2 years,
the Agency shall select an independent evaluator to review
and report on the Illinois Solar for All Program and the
performance of the third-party program administrator of
the Illinois Solar for All Program. The evaluation shall
be based on objective criteria developed through a public
stakeholder process. The process shall include feedback
and participation from Illinois Solar for All Program
stakeholders, including participants and organizations in
environmental justice and historically underserved
communities. The report shall include a summary of the
evaluation of the Illinois Solar for All Program based on
the stakeholder developed objective criteria. The report
shall include the number of projects installed; the total
installed capacity in kilowatts; the average cost per
kilowatt of installed capacity to the extent reasonably
obtainable by the Agency; the number of jobs or job
opportunities created; economic, social, and environmental
benefits created; and the total administrative costs
expended by the Agency and program administrator to
implement and evaluate the program. The report shall be
delivered to the Commission and posted on the Agency's

HB4687 - 51 - LRB103 36052 LNS 66139 b
website, and shall be used, as needed, to revise the
Illinois Solar for All Program. The Commission shall also
consider the results of the evaluation as part of its
review of the long-term renewable resources procurement
plan under subsection (c) of Section 1-75 of this Act.
(7) If additional funding for the programs described
in this subsection (b) is available under subsection (k)
of Section 16-108 of the Public Utilities Act, then the
Agency shall submit a procurement plan to the Commission
no later than September 1, 2018, that proposes how the
Agency will procure programs on behalf of the applicable
utility. After notice and hearing, the Commission shall
approve, or approve with modification, the plan no later
than November 1, 2018.
(8) As part of the development and update of the
long-term renewable resources procurement plan authorized
by subsection (c) of Section 1-75 of this Act, the Agency
shall plan for: (A) actions to refer customers from the
Illinois Solar for All Program to electric and natural gas
income-qualified energy efficiency programs, and vice
versa, with the goal of increasing participation in both
of these programs; (B) effective procedures for data
sharing, as needed, to effectuate referrals between the
Illinois Solar for All Program and both electric and
natural gas income-qualified energy efficiency programs,
including sharing customer information directly with the

HB4687 - 52 - LRB103 36052 LNS 66139 b
utilities, as needed and appropriate; and (C) efforts to
identify any existing deferred maintenance programs for
which prospective Solar for All Program customers may be
eligible and connect prospective customers for whom
deferred maintenance is or may be a barrier to solar
installation to those programs.
As used in this subsection (b), "low-income households"
means persons and families whose income does not exceed 80% of
area median income, adjusted for family size and revised every
5 years.
For the purposes of this subsection (b), the Agency shall
define "environmental justice community" based on the
methodologies and findings established by the Agency and the
Administrator for the Illinois Solar for All Program in its
initial long-term renewable resources procurement plan and as
updated by the Agency and the Administrator for the Illinois
Solar for All Program as part of the long-term renewable
resources procurement plan update.
(b-5) After the receipt of all payments required by
Section 16-115D of the Public Utilities Act, no additional
funds shall be deposited into the Illinois Power Agency
Renewable Energy Resources Fund unless directed by order of
the Commission.
(b-10) After the receipt of all payments required by
Section 16-115D of the Public Utilities Act and payment in
full of all contracts executed by the Agency under subsections

HB4687 - 53 - LRB103 36052 LNS 66139 b
(b) and (i) of this Section, if the balance of the Illinois
Power Agency Renewable Energy Resources Fund is under $5,000,
then the Fund shall be inoperative and any remaining funds and
any funds submitted to the Fund after that date, shall be
transferred to the Supplemental Low-Income Energy Assistance
Fund for use in the Low-Income Home Energy Assistance Program,
as authorized by the Energy Assistance Act.
(b-15) The prevailing wage requirements set forth in the
Prevailing Wage Act apply to each project that is undertaken
pursuant to one or more of the programs of incentives and
initiatives described in subsection (b) of this Section and
for which a project application is submitted to the program
after the effective date of this amendatory Act of the 103rd
General Assembly, except (i) projects that serve single-family
or multi-family residential buildings and (ii) projects with
an aggregate capacity of less than 100 kilowatts that serve
houses of worship. The Agency shall require verification that
all construction performed on a project by the renewable
energy credit delivery contract holder, its contractors, or
its subcontractors relating to the construction of the
facility is performed by workers receiving an amount for that
work that is greater than or equal to the general prevailing
rate of wages as that term is defined in the Prevailing Wage
Act, and the Agency may adjust renewable energy credit prices
to account for increased labor costs.
In this subsection (b-15), "house of worship" has the

HB4687 - 54 - LRB103 36052 LNS 66139 b
meaning given in subparagraph (Q) of paragraph (1) of
subsection (c) of Section 1-75.
(c) (Blank).
(d) (Blank).
(e) All renewable energy credits procured using monies
from the Illinois Power Agency Renewable Energy Resources Fund
shall be permanently retired.
(f) The selection of one or more third-party program
managers or administrators, the selection of the independent
evaluator, and the procurement processes described in this
Section are exempt from the requirements of the Illinois
Procurement Code, under Section 20-10 of that Code.
(g) All disbursements from the Illinois Power Agency
Renewable Energy Resources Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer as
custodian of the Fund upon vouchers signed by the Director or
by the person or persons designated by the Director for that
purpose. The Comptroller is authorized to draw the warrant
upon vouchers so signed. The Treasurer shall accept all
warrants so signed and shall be released from liability for
all payments made on those warrants.
(h) The Illinois Power Agency Renewable Energy Resources
Fund shall not be subject to sweeps, administrative charges,
or chargebacks, including, but not limited to, those
authorized under Section 8h of the State Finance Act, that
would in any way result in the transfer of any funds from this

HB4687 - 55 - LRB103 36052 LNS 66139 b
Fund to any other fund of this State or in having any such
funds utilized for any purpose other than the express purposes
set forth in this Section.
(h-5) The Agency may assess fees to each bidder to recover
the costs incurred in connection with a procurement process
held under this Section. Fees collected from bidders shall be
deposited into the Renewable Energy Resources Fund.
(i) Supplemental procurement process.
(1) Within 90 days after June 30, 2014 (the effective
date of Public Act 98-672) this amendatory Act of the 98th
General Assembly, the Agency shall develop a one-time
supplemental procurement plan limited to the procurement
of renewable energy credits, if available, from new or
existing photovoltaics, including, but not limited to,
distributed photovoltaic generation. Nothing in this
subsection (i) requires procurement of wind generation
through the supplemental procurement.
Renewable energy credits procured from new
photovoltaics, including, but not limited to, distributed
photovoltaic generation, under this subsection (i) must be
procured from devices installed by a qualified person. In
its supplemental procurement plan, the Agency shall
establish contractually enforceable mechanisms for
ensuring that the installation of new photovoltaics is
performed by a qualified person.
For the purposes of this paragraph (1), "qualified

HB4687 - 56 - LRB103 36052 LNS 66139 b
person" means a person who performs installations of
photovoltaics, including, but not limited to, distributed
photovoltaic generation, and who: (A) has completed an
apprenticeship as a journeyman electrician from a United
States Department of Labor registered electrical
apprenticeship and training program and received a
certification of satisfactory completion; or (B) does not
currently meet the criteria under clause (A) of this
paragraph (1), but is enrolled in a United States
Department of Labor registered electrical apprenticeship
program, provided that the person is directly supervised
by a person who meets the criteria under clause (A) of this
paragraph (1); or (C) has obtained one of the following
credentials in addition to attesting to satisfactory
completion of at least 5 years or 8,000 hours of
documented hands-on electrical experience: (i) a North
American Board of Certified Energy Practitioners (NABCEP)
Installer Certificate for Solar PV; (ii) an Underwriters
Laboratories (UL) PV Systems Installer Certificate; (iii)
an Electronics Technicians Association, International
(ETAI) Level 3 PV Installer Certificate; or (iv) an
Associate in Applied Science degree from an Illinois
Community College Board approved community college program
in renewable energy or a distributed generation
technology.
For the purposes of this paragraph (1), "directly

HB4687 - 57 - LRB103 36052 LNS 66139 b
supervised" means that there is a qualified person who
meets the qualifications under clause (A) of this
paragraph (1) and who is available for supervision and
consultation regarding the work performed by persons under
clause (B) of this paragraph (1), including a final
inspection of the installation work that has been directly
supervised to ensure safety and conformity with applicable
codes.
For the purposes of this paragraph (1), "install"
means the major activities and actions required to
connect, in accordance with applicable building and
electrical codes, the conductors, connectors, and all
associated fittings, devices, power outlets, or
apparatuses mounted at the premises that are directly
involved in delivering energy to the premises' electrical
wiring from the photovoltaics, including, but not limited
to, to distributed photovoltaic generation.
The renewable energy credits procured pursuant to the
supplemental procurement plan shall be procured using up
to $30,000,000 from the Illinois Power Agency Renewable
Energy Resources Fund. The Agency shall not plan to use
funds from the Illinois Power Agency Renewable Energy
Resources Fund in excess of the monies on deposit in such
fund or projected to be deposited into such fund. The
supplemental procurement plan shall ensure adequate,
reliable, affordable, efficient, and environmentally

HB4687 - 58 - LRB103 36052 LNS 66139 b
sustainable renewable energy resources (including credits)
at the lowest total cost over time, taking into account
any benefits of price stability.
To the extent available, 50% of the renewable energy
credits procured from distributed renewable energy
generation shall come from devices of less than 25
kilowatts in nameplate capacity. Procurement of renewable
energy credits from distributed renewable energy
generation devices shall be done through multi-year
contracts of no less than 5 years. The Agency shall create
credit requirements for counterparties. In order to
minimize the administrative burden on contracting
entities, the Agency shall solicit the use of third
parties to aggregate distributed renewable energy. These
third parties shall enter into and administer contracts
with individual distributed renewable energy generation
device owners. An individual distributed renewable energy
generation device owner shall have the ability to measure
the output of his or her distributed renewable energy
generation device.
In developing the supplemental procurement plan, the
Agency shall hold at least one workshop open to the public
within 90 days after June 30, 2014 (the effective date of
Public Act 98-672) this amendatory Act of the 98th General
Assembly and shall consider any comments made by
stakeholders or the public. Upon development of the

HB4687 - 59 - LRB103 36052 LNS 66139 b
supplemental procurement plan within this 90-day period,
copies of the supplemental procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites. All interested parties shall have
14 days following the date of posting to provide comment
to the Agency on the supplemental procurement plan. All
comments submitted to the Agency shall be specific,
supported by data or other detailed analyses, and, if
objecting to all or a portion of the supplemental
procurement plan, accompanied by specific alternative
wording or proposals. All comments shall be posted on the
Agency's and Commission's websites. Within 14 days
following the end of the 14-day review period, the Agency
shall revise the supplemental procurement plan as
necessary based on the comments received and file its
revised supplemental procurement plan with the Commission
for approval.
(2) Within 5 days after the filing of the supplemental
procurement plan at the Commission, any person objecting
to the supplemental procurement plan shall file an
objection with the Commission. Within 10 days after the
filing, the Commission shall determine whether a hearing
is necessary. The Commission shall enter its order
confirming or modifying the supplemental procurement plan
within 90 days after the filing of the supplemental
procurement plan by the Agency.

HB4687 - 60 - LRB103 36052 LNS 66139 b
(3) The Commission shall approve the supplemental
procurement plan of renewable energy credits to be
procured from new or existing photovoltaics, including,
but not limited to, distributed photovoltaic generation,
if the Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service in the form of renewable
energy credits at the lowest total cost over time, taking
into account any benefits of price stability.
(4) The supplemental procurement process under this
subsection (i) shall include each of the following
components:
(A) Procurement administrator. The Agency may
retain a procurement administrator in the manner set
forth in item (2) of subsection (a) of Section 1-75 of
this Act to conduct the supplemental procurement or
may elect to use the same procurement administrator
administering the Agency's annual procurement under
Section 1-75.
(B) Procurement monitor. The procurement monitor
retained by the Commission pursuant to Section
16-111.5 of the Public Utilities Act shall:
(i) monitor interactions among the procurement
administrator and bidders and suppliers;
(ii) monitor and report to the Commission on
the progress of the supplemental procurement

HB4687 - 61 - LRB103 36052 LNS 66139 b
process;
(iii) provide an independent confidential
report to the Commission regarding the results of
the procurement events;
(iv) assess compliance with the procurement
plan approved by the Commission for the
supplemental procurement process;
(v) preserve the confidentiality of supplier
and bidding information in a manner consistent
with all applicable laws, rules, regulations, and
tariffs;
(vi) provide expert advice to the Commission
and consult with the procurement administrator
regarding issues related to procurement process
design, rules, protocols, and policy-related
matters;
(vii) consult with the procurement
administrator regarding the development and use of
benchmark criteria, standard form contracts,
credit policies, and bid documents; and
(viii) perform, with respect to the
supplemental procurement process, any other
procurement monitor duties specifically delineated
within subsection (i) of this Section.
(C) Solicitation, prequalification
pre-qualification, and registration of bidders. The

HB4687 - 62 - LRB103 36052 LNS 66139 b
procurement administrator shall disseminate
information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid
price negotiation with bidders that meet the
applicable benchmarks, provide supply requirements,
and otherwise explain the competitive procurement
process. In addition to such other publication as the
procurement administrator determines is appropriate,
this information shall be posted on the Agency's and
the Commission's websites. The procurement
administrator shall also administer the
prequalification process, including evaluation of
credit worthiness, compliance with procurement rules,
and agreement to the standard form contract developed
pursuant to item (D) of this paragraph (4). The
procurement administrator shall then identify and
register bidders to participate in the procurement
event.
(D) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the Agency, the Commission, and
other interested parties and subject to Commission
oversight, shall develop and provide standard contract
forms for the supplier contracts that meet generally
accepted industry practices as well as include any

HB4687 - 63 - LRB103 36052 LNS 66139 b
applicable State of Illinois terms and conditions that
are required for contracts entered into by an agency
of the State of Illinois. Standard credit terms and
instruments that meet generally accepted industry
practices shall be similarly developed. Contracts for
new photovoltaics shall include a provision attesting
that the supplier will use a qualified person for the
installation of the device pursuant to paragraph (1)
of subsection (i) of this Section. The procurement
administrator shall make available to the Commission
all written comments it receives on the contract
forms, credit terms, or instruments. If the
procurement administrator cannot reach agreement with
the parties as to the contract terms and conditions,
the procurement administrator must notify the
Commission of any disputed terms and the Commission
shall resolve the dispute. The terms of the contracts
shall not be subject to negotiation by winning
bidders, and the bidders must agree to the terms of the
contract in advance so that winning bids are selected
solely on the basis of price.
(E) Requests for proposals; competitive
procurement process. The procurement administrator
shall design and issue requests for proposals to
supply renewable energy credits in accordance with the
supplemental procurement plan, as approved by the

HB4687 - 64 - LRB103 36052 LNS 66139 b
Commission. The requests for proposals shall set forth
a procedure for sealed, binding commitment bidding
with pay-as-bid settlement, and provision for
selection of bids on the basis of price, provided,
however, that no bid shall be accepted if it exceeds
the benchmark developed pursuant to item (F) of this
paragraph (4).
(F) Benchmarks. Benchmarks for each product to be
procured shall be developed by the procurement
administrator in consultation with Commission staff,
the Agency, and the procurement monitor for use in
this supplemental procurement.
(G) A plan for implementing contingencies in the
event of supplier default, Commission rejection of
results, or any other cause.
(5) Within 2 business days after opening the sealed
bids, the procurement administrator shall submit a
confidential report to the Commission. The report shall
contain the results of the bidding for each of the
products along with the procurement administrator's
recommendation for the acceptance and rejection of bids
based on the price benchmark criteria and other factors
observed in the process. The procurement monitor also
shall submit a confidential report to the Commission
within 2 business days after opening the sealed bids. The
report shall contain the procurement monitor's assessment

HB4687 - 65 - LRB103 36052 LNS 66139 b
of bidder behavior in the process as well as an assessment
of the procurement administrator's compliance with the
procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement
administrator and procurement monitor and shall accept or
reject the recommendations of the procurement
administrator within 2 business days after receipt of the
reports.
(6) Within 3 business days after the Commission
decision approving the results of a procurement event, the
Agency shall enter into binding contractual arrangements
with the winning suppliers using the standard form
contracts.
(7) The names of the successful bidders and the
average of the winning bid prices for each contract type
and for each contract term shall be made available to the
public within 2 days after the supplemental procurement
event. The Commission, the procurement monitor, the
procurement administrator, the Agency, and all
participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding
information in a manner consistent with all applicable
laws, rules, regulations, and tariffs. Confidential
information, including the confidential reports submitted
by the procurement administrator and procurement monitor
pursuant to this Section, shall not be made publicly

HB4687 - 66 - LRB103 36052 LNS 66139 b
available and shall not be discoverable by any party in
any proceeding, absent a compelling demonstration of need,
nor shall those reports be admissible in any proceeding
other than one for law enforcement purposes.
(8) The supplemental procurement provided in this
subsection (i) shall not be subject to the requirements
and limitations of subsections (c) and (d) of this
Section.
(9) Expenses incurred in connection with the
procurement process held pursuant to this Section,
including, but not limited to, the cost of developing the
supplemental procurement plan, the procurement
administrator, procurement monitor, and the cost of the
retirement of renewable energy credits purchased pursuant
to the supplemental procurement shall be paid for from the
Illinois Power Agency Renewable Energy Resources Fund. The
Agency shall enter into an interagency agreement with the
Commission to reimburse the Commission for its costs
associated with the procurement monitor for the
supplemental procurement process.
(Source: P.A. 102-662, eff. 9-15-21; 103-188, eff. 6-30-23;
revised 9-20-23.)
(20 ILCS 3855/1-75)
Sec. 1-75. Planning and Procurement Bureau. The Planning
and Procurement Bureau has the following duties and

HB4687 - 67 - LRB103 36052 LNS 66139 b
responsibilities:
(a) The Planning and Procurement Bureau shall each year,
beginning in 2008, develop procurement plans and conduct
competitive procurement processes in accordance with the
requirements of Section 16-111.5 of the Public Utilities Act
for the eligible retail customers of electric utilities that
on December 31, 2005 provided electric service to at least
100,000 customers in Illinois. Beginning with the delivery
year commencing on June 1, 2017, the Planning and Procurement
Bureau shall develop plans and processes for the procurement
of zero emission credits from zero emission facilities in
accordance with the requirements of subsection (d-5) of this
Section. Beginning on the effective date of this amendatory
Act of the 102nd General Assembly, the Planning and
Procurement Bureau shall develop plans and processes for the
procurement of carbon mitigation credits from carbon-free
energy resources in accordance with the requirements of
subsection (d-10) of this Section. The Planning and
Procurement Bureau shall also develop procurement plans and
conduct competitive procurement processes in accordance with
the requirements of Section 16-111.5 of the Public Utilities
Act for the eligible retail customers of small
multi-jurisdictional electric utilities that (i) on December
31, 2005 served less than 100,000 customers in Illinois and
(ii) request a procurement plan for their Illinois
jurisdictional load. This Section shall not apply to a small

HB4687 - 68 - LRB103 36052 LNS 66139 b
multi-jurisdictional utility until such time as a small
multi-jurisdictional utility requests the Agency to prepare a
procurement plan for their Illinois jurisdictional load. For
the purposes of this Section, the term "eligible retail
customers" has the same definition as found in Section
16-111.5(a) of the Public Utilities Act.
Beginning with the plan or plans to be implemented in the
2017 delivery year, the Agency shall no longer include the
procurement of renewable energy resources in the annual
procurement plans required by this subsection (a), except as
provided in subsection (q) of Section 16-111.5 of the Public
Utilities Act, and shall instead develop a long-term renewable
resources procurement plan in accordance with subsection (c)
of this Section and Section 16-111.5 of the Public Utilities
Act.
In accordance with subsection (c-5) of this Section, the
Planning and Procurement Bureau shall oversee the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new utility-scale solar projects to be
installed, along with energy storage facilities, at or
adjacent to the sites of electric generating facilities that,
as of January 1, 2016, burned coal as their primary fuel
source.
(1) The Agency shall each year, beginning in 2008, as
needed, issue a request for qualifications for experts or

HB4687 - 69 - LRB103 36052 LNS 66139 b
expert consulting firms to develop the procurement plans
in accordance with Section 16-111.5 of the Public
Utilities Act. In order to qualify an expert or expert
consulting firm must have:
(A) direct previous experience assembling
large-scale power supply plans or portfolios for
end-use customers;
(B) an advanced degree in economics, mathematics,
engineering, risk management, or a related area of
study;
(C) 10 years of experience in the electricity
sector, including managing supply risk;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit protocols and familiarity
with contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or
the affected electric utilities.
(2) The Agency shall each year, as needed, issue a
request for qualifications for a procurement administrator
to conduct the competitive procurement processes in

HB4687 - 70 - LRB103 36052 LNS 66139 b
accordance with Section 16-111.5 of the Public Utilities
Act. In order to qualify an expert or expert consulting
firm must have:
(A) direct previous experience administering a
large-scale competitive procurement process;
(B) an advanced degree in economics, mathematics,
engineering, or a related area of study;
(C) 10 years of experience in the electricity
sector, including risk management experience;
(D) expertise in wholesale electricity market
rules, including those established by the Federal
Energy Regulatory Commission and regional transmission
organizations;
(E) expertise in credit and contract protocols;
(F) adequate resources to perform and fulfill the
required functions and responsibilities; and
(G) the absence of a conflict of interest and
inappropriate bias for or against potential bidders or
the affected electric utilities.
(3) The Agency shall provide affected utilities and
other interested parties with the lists of qualified
experts or expert consulting firms identified through the
request for qualifications processes that are under
consideration to develop the procurement plans and to
serve as the procurement administrator. The Agency shall
also provide each qualified expert's or expert consulting

HB4687 - 71 - LRB103 36052 LNS 66139 b
firm's response to the request for qualifications. All
information provided under this subparagraph shall also be
provided to the Commission. The Agency may provide by rule
for fees associated with supplying the information to
utilities and other interested parties. These parties
shall, within 5 business days, notify the Agency in
writing if they object to any experts or expert consulting
firms on the lists. Objections shall be based on:
(A) failure to satisfy qualification criteria;
(B) identification of a conflict of interest; or
(C) evidence of inappropriate bias for or against
potential bidders or the affected utilities.
The Agency shall remove experts or expert consulting
firms from the lists within 10 days if there is a
reasonable basis for an objection and provide the updated
lists to the affected utilities and other interested
parties. If the Agency fails to remove an expert or expert
consulting firm from a list, an objecting party may seek
review by the Commission within 5 days thereafter by
filing a petition, and the Commission shall render a
ruling on the petition within 10 days. There is no right of
appeal of the Commission's ruling.
(4) The Agency shall issue requests for proposals to
the qualified experts or expert consulting firms to
develop a procurement plan for the affected utilities and
to serve as procurement administrator.

HB4687 - 72 - LRB103 36052 LNS 66139 b
(5) The Agency shall select an expert or expert
consulting firm to develop procurement plans based on the
proposals submitted and shall award contracts of up to 5
years to those selected.
(6) The Agency shall select an expert or expert
consulting firm, with approval of the Commission, to serve
as procurement administrator based on the proposals
submitted. If the Commission rejects, within 5 days, the
Agency's selection, the Agency shall submit another
recommendation within 3 days based on the proposals
submitted. The Agency shall award a 5-year contract to the
expert or expert consulting firm so selected with
Commission approval.
(b) The experts or expert consulting firms retained by the
Agency shall, as appropriate, prepare procurement plans, and
conduct a competitive procurement process as prescribed in
Section 16-111.5 of the Public Utilities Act, to ensure
adequate, reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability, for
eligible retail customers of electric utilities that on
December 31, 2005 provided electric service to at least
100,000 customers in the State of Illinois, and for eligible
Illinois retail customers of small multi-jurisdictional
electric utilities that (i) on December 31, 2005 served less
than 100,000 customers in Illinois and (ii) request a

HB4687 - 73 - LRB103 36052 LNS 66139 b
procurement plan for their Illinois jurisdictional load.
(c) Renewable portfolio standard.
(1) The procurement plans shall include cost-effective
renewable energy resources. By June 1, 2025, a minimum of
25% of each utility's total supply to serve the load of
eligible retail customers, as defined in subsection (a) of
Section 16-111.5 of the Public Utilities Act, shall be
generated from cost-effective renewable energy resources.
To the extent that it is available, at least 75% of the
renewable energy resources used to meet these standards
shall come from wind generation. To the extent available,
half of the renewable energy resources procured from
distributed renewable energy generation shall come from
devices of less than 25 kilowatts in nameplate capacity.
Renewable energy resources procured from distributed
generation devices may also count toward the required
percentages for wind and solar photovoltaics. Procurement
of renewable energy resources from distributed renewable
energy generation devices shall be done on an annual basis
through multi-year contracts of no less than 5 years, and
shall consist solely of renewable energy credits.
The Agency shall create credit requirements for
suppliers of distributed renewable energy. In order to
minimize the administrative burden on contracting
entities, the Agency shall solicit the use of third-party
organizations to aggregate distributed renewable energy

HB4687 - 74 - LRB103 36052 LNS 66139 b
into groups of no less than one megawatt in installed
capacity. These third-party organizations shall administer
contracts with individual distributed renewable energy
generation device owners. An individual distributed
renewable energy generation device owner shall have the
ability to measure the output of his or her distributed
renewable energy generation device.
For purposes of this subsection (c), "cost-effective"
means that the costs of procuring renewable energy
resources do not cause the limit stated in paragraph (2)
of this subsection (c) to be exceeded and do not exceed
benchmarks based on market prices for renewable energy
resources in the region, which shall be developed by the
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor and shall be subject to Commission review and
approval. (A) The Agency shall develop a long-term
renewable resources procurement plan that shall include
procurement programs and competitive procurement events
necessary to meet the goals set forth in this subsection
(c). The initial long-term renewable resources procurement
plan shall be released for comment no later than 160 days
after June 1, 2017 (the effective date of Public Act
99-906). The Agency shall review, and may revise on an
expedited basis, the long-term renewable resources
procurement plan at least every 2 years, which shall be

HB4687 - 75 - LRB103 36052 LNS 66139 b
conducted in conjunction with the procurement plan under
Section 16-111.5 of the Public Utilities Act to the extent
practicable to minimize administrative expense. No later
than 120 days after the effective date of this amendatory
Act of the 103rd General Assembly, the Agency shall
release for comment a revision to the long-term renewable
resources procurement plan, updating elements of the most
recently approved plan as needed to comply with this
amendatory Act of the 103rd General Assembly, and any
long-term renewable resources procurement plan update
published by the Agency but not yet approved by the
Illinois Commerce Commission shall be withdrawn. The
long-term renewable resources procurement plans shall be
subject to review and approval by the Commission under
Section 16-111.5 of the Public Utilities Act.
(B) Subject to subparagraph (F) of this paragraph (1),
the long-term renewable resources procurement plan shall
attempt to meet the goals for procurement of renewable
energy credits at levels of at least the following overall
percentages: 13% by the 2017 delivery year; increasing by
at least 1.5% each delivery year thereafter to at least
25% by the 2025 delivery year; increasing by at least 3%
each delivery year thereafter to at least 40% by the 2030
delivery year, and continuing at no less than 40% for each
delivery year thereafter. The Agency shall attempt to
procure 50% by delivery year 2040. The Agency shall

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determine the annual increase between delivery year 2030
and delivery year 2040, if any, taking into account energy
demand, other energy resources, and other public policy
goals. In the event of a conflict between these goals and
the new wind, new photovoltaic, and hydropower procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1), the long-term plan
shall prioritize compliance with the new wind, new
photovoltaic, and hydropower procurement requirements
described in items (i) through (iii) of subparagraph (C)
of this paragraph (1) over the annual percentage targets
described in this subparagraph (B). The Agency shall not
comply with the annual percentage targets described in
this subparagraph (B) by procuring renewable energy
credits that are unlikely to lead to the development of
new renewable resources or new, modernized, or retooled
hydropower facilities.
For the delivery year beginning June 1, 2017, the
procurement plan shall attempt to include, subject to the
prioritization outlined in this subparagraph (B),
cost-effective renewable energy resources equal to at
least 13% of each utility's load for eligible retail
customers and 13% of the applicable portion of each
utility's load for retail customers who are not eligible
retail customers, which applicable portion shall equal 50%
of the utility's load for retail customers who are not

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eligible retail customers on February 28, 2017.
For the delivery year beginning June 1, 2018, the
procurement plan shall attempt to include, subject to the
prioritization outlined in this subparagraph (B),
cost-effective renewable energy resources equal to at
least 14.5% of each utility's load for eligible retail
customers and 14.5% of the applicable portion of each
utility's load for retail customers who are not eligible
retail customers, which applicable portion shall equal 75%
of the utility's load for retail customers who are not
eligible retail customers on February 28, 2017.
For the delivery year beginning June 1, 2019, and for
each year thereafter, the procurement plans shall attempt
to include, subject to the prioritization outlined in this
subparagraph (B), cost-effective renewable energy
resources equal to a minimum percentage of each utility's
load for all retail customers as follows: 16% by June 1,
2019; increasing by 1.5% each year thereafter to 25% by
June 1, 2025; and 25% by June 1, 2026; increasing by at
least 3% each delivery year thereafter to at least 40% by
the 2030 delivery year, and continuing at no less than 40%
for each delivery year thereafter. The Agency shall
attempt to procure 50% by delivery year 2040. The Agency
shall determine the annual increase between delivery year
2030 and delivery year 2040, if any, taking into account
energy demand, other energy resources, and other public

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policy goals.
For each delivery year, the Agency shall first
recognize each utility's obligations for that delivery
year under existing contracts. Any renewable energy
credits under existing contracts, including renewable
energy credits as part of renewable energy resources,
shall be used to meet the goals set forth in this
subsection (c) for the delivery year.
(C) The long-term renewable resources procurement plan
described in subparagraph (A) of this paragraph (1) shall
include the procurement of renewable energy credits from
new projects pursuant to the following terms:
(i) At least 10,000,000 renewable energy credits
delivered annually by the end of the 2021 delivery
year, and increasing ratably to reach 45,000,000
renewable energy credits delivered annually from new
wind and solar projects by the end of delivery year
2030 such that the goals in subparagraph (B) of this
paragraph (1) are met entirely by procurements of
renewable energy credits from new wind and
photovoltaic projects. Of that amount, to the extent
possible, the Agency shall procure 45% from wind and
hydropower projects and 55% from photovoltaic
projects. Of the amount to be procured from
photovoltaic projects, the Agency shall procure: at
least 50% from solar photovoltaic projects using the

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program outlined in subparagraph (K) of this paragraph
(1) from distributed renewable energy generation
devices or community renewable generation projects; at
least 47% from utility-scale solar projects; at least
3% from brownfield site photovoltaic projects that are
not community renewable generation projects.
In developing the long-term renewable resources
procurement plan, the Agency shall consider other
approaches, in addition to competitive procurements,
that can be used to procure renewable energy credits
from brownfield site photovoltaic projects and thereby
help return blighted or contaminated land to
productive use while enhancing public health and the
well-being of Illinois residents, including those in
environmental justice communities, as defined using
existing methodologies and findings used by the Agency
and its Administrator in its Illinois Solar for All
Program. The Agency shall also consider other
approaches, in addition to competitive procurements,
to procure renewable energy credits from new and
existing hydropower facilities to support the
development and maintenance of these facilities. The
Agency shall explore options to convert existing dams
but shall not consider approaches to develop new dams
where they do not already exist.
(ii) In any given delivery year, if forecasted

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expenses are less than the maximum budget available
under subparagraph (E) of this paragraph (1), the
Agency shall continue to procure new renewable energy
credits until that budget is exhausted in the manner
outlined in item (i) of this subparagraph (C).
(iii) For purposes of this Section:
"New wind projects" means wind renewable energy
facilities that are energized after June 1, 2017 for
the delivery year commencing June 1, 2017.
"New photovoltaic projects" means photovoltaic
renewable energy facilities that are energized after
June 1, 2017. Photovoltaic projects developed under
Section 1-56 of this Act shall not apply towards the
new photovoltaic project requirements in this
subparagraph (C).
For purposes of calculating whether the Agency has
procured enough new wind and solar renewable energy
credits required by this subparagraph (C), renewable
energy facilities that have a multi-year renewable
energy credit delivery contract with the utility
through at least delivery year 2030 shall be
considered new, however no renewable energy credits
from contracts entered into before June 1, 2021 shall
be used to calculate whether the Agency has procured
the correct proportion of new wind and new solar
contracts described in this subparagraph (C) for

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delivery year 2021 and thereafter.
(D) Renewable energy credits shall be cost effective.
For purposes of this subsection (c), "cost effective"
means that the costs of procuring renewable energy
resources do not cause the limit stated in subparagraph
(E) of this paragraph (1) to be exceeded and, for
renewable energy credits procured through a competitive
procurement event, do not exceed benchmarks based on
market prices for like products in the region. For
purposes of this subsection (c), "like products" means
contracts for renewable energy credits from the same or
substantially similar technology, same or substantially
similar vintage (new or existing), the same or
substantially similar quantity, and the same or
substantially similar contract length and structure.
Benchmarks shall reflect development, financing, or
related costs resulting from requirements imposed through
other provisions of State law, including, but not limited
to, requirements in subparagraphs (P) and (Q) of this
paragraph (1) and the Renewable Energy Facilities
Agricultural Impact Mitigation Act. Confidential
benchmarks shall be developed by the procurement
administrator, in consultation with the Commission staff,
Agency staff, and the procurement monitor and shall be
subject to Commission review and approval. If price
benchmarks for like products in the region are not

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available, the procurement administrator shall establish
price benchmarks based on publicly available data on
regional technology costs and expected current and future
regional energy prices. The benchmarks in this Section
shall not be used to curtail or otherwise reduce
contractual obligations entered into by or through the
Agency prior to June 1, 2017 (the effective date of Public
Act 99-906).
(E) For purposes of this subsection (c), the required
procurement of cost-effective renewable energy resources
for a particular year commencing prior to June 1, 2017
shall be measured as a percentage of the actual amount of
electricity (megawatt-hours) supplied by the electric
utility to eligible retail customers in the delivery year
ending immediately prior to the procurement, and, for
delivery years commencing on and after June 1, 2017, the
required procurement of cost-effective renewable energy
resources for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) delivered by the electric utility in the
delivery year ending immediately prior to the procurement,
to all retail customers in its service territory. For
purposes of this subsection (c), the amount paid per
kilowatthour means the total amount paid for electric
service expressed on a per kilowatthour basis. For
purposes of this subsection (c), the total amount paid for

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electric service includes without limitation amounts paid
for supply, transmission, capacity, distribution,
surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured
under the procurement plan for any single year shall be
subject to the limitations of this subparagraph (E). Such
procurement shall be reduced for all retail customers
based on the amount necessary to limit the annual
estimated average net increase due to the costs of these
resources included in the amounts paid by eligible retail
customers in connection with electric service to no more
than 4.25% of the amount paid per kilowatthour by those
customers during the year ending May 31, 2009. To arrive
at a maximum dollar amount of renewable energy resources
to be procured for the particular delivery year, the
resulting per kilowatthour amount shall be applied to the
actual amount of kilowatthours of electricity delivered,
or applicable portion of such amount as specified in
paragraph (1) of this subsection (c), as applicable, by
the electric utility in the delivery year immediately
prior to the procurement to all retail customers in its
service territory. The calculations required by this
subparagraph (E) shall be made only once for each delivery
year at the time that the renewable energy resources are
procured. Once the determination as to the amount of

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renewable energy resources to procure is made based on the
calculations set forth in this subparagraph (E) and the
contracts procuring those amounts are executed, no
subsequent rate impact determinations shall be made and no
adjustments to those contract amounts shall be allowed.
All costs incurred under such contracts shall be fully
recoverable by the electric utility as provided in this
Section.
(F) If the limitation on the amount of renewable
energy resources procured in subparagraph (E) of this
paragraph (1) prevents the Agency from meeting all of the
goals in this subsection (c), the Agency's long-term plan
shall prioritize compliance with the requirements of this
subsection (c) regarding renewable energy credits in the
following order:
(i) renewable energy credits under existing
contractual obligations as of June 1, 2021;
(i-5) funding for the Illinois Solar for All
Program, as described in subparagraph (O) of this
paragraph (1);
(ii) renewable energy credits necessary to comply
with the new wind and new photovoltaic procurement
requirements described in items (i) through (iii) of
subparagraph (C) of this paragraph (1); and
(iii) renewable energy credits necessary to meet
the remaining requirements of this subsection (c).

HB4687 - 85 - LRB103 36052 LNS 66139 b
(G) The following provisions shall apply to the
Agency's procurement of renewable energy credits under
this subsection (c):
(i) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
wind projects within 160 days after June 1, 2017 (the
effective date of Public Act 99-906). For the purposes
of this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale wind projects to begin delivery on June
1, 2019, if available, but not later than June 1, 2021,
unless the project has delays in the establishment of
an operating interconnection with the applicable
transmission or distribution system as a result of the
actions or inactions of the transmission or
distribution provider, or other causes for force
majeure as outlined in the procurement contract, in
which case, not later than June 1, 2022. Payments to
suppliers of renewable energy credits shall commence
upon delivery. Renewable energy credits procured under
this initial procurement shall be included in the
Agency's long-term plan and shall apply to all
renewable energy goals in this subsection (c).

HB4687 - 86 - LRB103 36052 LNS 66139 b
(ii) Notwithstanding whether a long-term renewable
resources procurement plan has been approved, the
Agency shall conduct an initial forward procurement
for renewable energy credits from new utility-scale
solar projects and brownfield site photovoltaic
projects within one year after June 1, 2017 (the
effective date of Public Act 99-906). For the purposes
of this initial forward procurement, the Agency shall
solicit 15-year contracts for delivery of 1,000,000
renewable energy credits delivered annually from new
utility-scale solar projects and brownfield site
photovoltaic projects to begin delivery on June 1,
2019, if available, but not later than June 1, 2021,
unless the project has delays in the establishment of
an operating interconnection with the applicable
transmission or distribution system as a result of the
actions or inactions of the transmission or
distribution provider, or other causes for force
majeure as outlined in the procurement contract, in
which case, not later than June 1, 2022. The Agency may
structure this initial procurement in one or more
discrete procurement events. Payments to suppliers of
renewable energy credits shall commence upon delivery.
Renewable energy credits procured under this initial
procurement shall be included in the Agency's
long-term plan and shall apply to all renewable energy

HB4687 - 87 - LRB103 36052 LNS 66139 b
goals in this subsection (c).
(iii) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
conduct at least one subsequent forward procurement
for renewable energy credits from new utility-scale
wind projects, new utility-scale solar projects, and
new brownfield site photovoltaic projects within 240
days after the effective date of this amendatory Act
of the 102nd General Assembly in quantities necessary
to meet the requirements of subparagraph (C) of this
paragraph (1) through the delivery year beginning June
1, 2021.
(iv) Notwithstanding whether the Commission has
approved the periodic long-term renewable resources
procurement plan revision described in Section
16-111.5 of the Public Utilities Act, the Agency shall
open capacity for each category in the Adjustable
Block program within 90 days after the effective date
of this amendatory Act of the 102nd General Assembly
manner:
(1) The Agency shall open the first block of
annual capacity for the category described in item
(i) of subparagraph (K) of this paragraph (1). The
first block of annual capacity for item (i) shall

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be for at least 75 megawatts of total nameplate
capacity. The price of the renewable energy credit
for this block of capacity shall be 4% less than
the price of the last open block in this category.
Projects on a waitlist shall be awarded contracts
first in the order in which they appear on the
waitlist. Notwithstanding anything to the
contrary, for those renewable energy credits that
qualify and are procured under this subitem (1) of
this item (iv), the renewable energy credit
delivery contract value shall be paid in full,
based on the estimated generation during the first
15 years of operation, by the contracting
utilities at the time that the facility producing
the renewable energy credits is interconnected at
the distribution system level of the utility and
verified as energized and in compliance by the
Program Administrator. The electric utility shall
receive and retire all renewable energy credits
generated by the project for the first 15 years of
operation. Renewable energy credits generated by
the project thereafter shall not be transferred
under the renewable energy credit delivery
contract with the counterparty electric utility.
(2) The Agency shall open the first block of
annual capacity for the category described in item

HB4687 - 89 - LRB103 36052 LNS 66139 b
(ii) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (ii)
shall be for at least 75 megawatts of total
nameplate capacity.
(A) The price of the renewable energy
credit for any project on a waitlist for this
category before the opening of this block
shall be 4% less than the price of the last
open block in this category. Projects on the
waitlist shall be awarded contracts first in
the order in which they appear on the
waitlist. Any projects that are less than or
equal to 25 kilowatts in size on the waitlist
for this capacity shall be moved to the
waitlist for paragraph (1) of this item (iv).
Notwithstanding anything to the contrary,
projects that were on the waitlist prior to
opening of this block shall not be required to
be in compliance with the requirements of
subparagraph (Q) of this paragraph (1) of this
subsection (c). Notwithstanding anything to
the contrary, for those renewable energy
credits procured from projects that were on
the waitlist for this category before the
opening of this block 20% of the renewable
energy credit delivery contract value, based

HB4687 - 90 - LRB103 36052 LNS 66139 b
on the estimated generation during the first
15 years of operation, shall be paid by the
contracting utilities at the time that the
facility producing the renewable energy
credits is interconnected at the distribution
system level of the utility and verified as
energized by the Program Administrator. The
remaining portion shall be paid ratably over
the subsequent 4-year period. The electric
utility shall receive and retire all renewable
energy credits generated by the project during
the first 15 years of operation. Renewable
energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with
the counterparty electric utility.
(B) The price of renewable energy credits
for any project not on the waitlist for this
category before the opening of the block shall
be determined and published by the Agency.
Projects not on a waitlist as of the opening
of this block shall be subject to the
requirements of subparagraph (Q) of this
paragraph (1), as applicable. Projects not on
a waitlist as of the opening of this block
shall be subject to the contract provisions

HB4687 - 91 - LRB103 36052 LNS 66139 b
outlined in item (iii) of subparagraph (L) of
this paragraph (1). The Agency shall strive to
publish updated prices and an updated
renewable energy credit delivery contract as
quickly as possible.
(3) For opening the first 2 blocks of annual
capacity for projects participating in item (iii)
of subparagraph (K) of paragraph (1) of subsection
(c), projects shall be selected exclusively from
those projects on the ordinal waitlists of
community renewable generation projects
established by the Agency based on the status of
those ordinal waitlists as of December 31, 2020,
and only those projects previously determined to
be eligible for the Agency's April 2019 community
solar project selection process.
The first 2 blocks of annual capacity for item
(iii) shall be for 250 megawatts of total
nameplate capacity, with both blocks opening
simultaneously under the schedule outlined in the
paragraphs below. Projects shall be selected as
follows:
(A) The geographic balance of selected
projects shall follow the Group classification
found in the Agency's Revised Long-Term
Renewable Resources Procurement Plan, with 70%

HB4687 - 92 - LRB103 36052 LNS 66139 b
of capacity allocated to projects on the Group
B waitlist and 30% of capacity allocated to
projects on the Group A waitlist.
(B) Contract awards for waitlisted
projects shall be allocated proportionate to
the total nameplate capacity amount across
both ordinal waitlists associated with that
applicant firm or its affiliates, subject to
the following conditions.
(i) Each applicant firm having a
waitlisted project eligible for selection
shall receive no less than 500 kilowatts
in awarded capacity across all groups, and
no approved vendor may receive more than
20% of each Group's waitlist allocation.
(ii) Each applicant firm, upon
receiving an award of program capacity
proportionate to its waitlisted capacity,
may then determine which waitlisted
projects it chooses to be selected for a
contract award up to that capacity amount.
(iii) Assuming all other program
requirements are met, applicant firms may
adjust the nameplate capacity of applicant
projects without losing waitlist
eligibility, so long as no project is

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greater than 2,000 kilowatts in size.
(iv) Assuming all other program
requirements are met, applicant firms may
adjust the expected production associated
with applicant projects, subject to
verification by the Program Administrator.
(C) After a review of affiliate
information and the current ordinal waitlists,
the Agency shall announce the nameplate
capacity award amounts associated with
applicant firms no later than 90 days after
the effective date of this amendatory Act of
the 102nd General Assembly.
(D) Applicant firms shall submit their
portfolio of projects used to satisfy those
contract awards no less than 90 days after the
Agency's announcement. The total nameplate
capacity of all projects used to satisfy that
portfolio shall be no greater than the
Agency's nameplate capacity award amount
associated with that applicant firm. An
applicant firm may decline, in whole or in
part, its nameplate capacity award without
penalty, with such unmet capacity rolled over
to the next block opening for project
selection under item (iii) of subparagraph (K)

HB4687 - 94 - LRB103 36052 LNS 66139 b
of this subsection (c). Any projects not
included in an applicant firm's portfolio may
reapply without prejudice upon the next block
reopening for project selection under item
(iii) of subparagraph (K) of this subsection
(c).
(E) The renewable energy credit delivery
contract shall be subject to the contract and
payment terms outlined in item (iv) of
subparagraph (L) of this subsection (c).
Contract instruments used for this
subparagraph shall contain the following
terms:
(i) Renewable energy credit prices
shall be fixed, without further adjustment
under any other provision of this Act or
for any other reason, at 10% lower than
prices applicable to the last open block
for this category, inclusive of any adders
available for achieving a minimum of 50%
of subscribers to the project's nameplate
capacity being residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;
(ii) A requirement that a minimum of
50% of subscribers to the project's

HB4687 - 95 - LRB103 36052 LNS 66139 b
nameplate capacity be residential or small
commercial customers with subscriptions of
below 25 kilowatts in size;
(iii) Permission for the ability of a
contract holder to substitute projects
with other waitlisted projects without
penalty should a project receive a
non-binding estimate of costs to construct
the interconnection facilities and any
required distribution upgrades associated
with that project of greater than 30 cents
per watt AC of that project's nameplate
capacity. In developing the applicable
contract instrument, the Agency may
consider whether other circumstances
outside of the control of the applicant
firm should also warrant project
substitution rights.
The Agency shall publish a finalized
updated renewable energy credit delivery
contract developed consistent with these terms
and conditions no less than 30 days before
applicant firms must submit their portfolio of
projects pursuant to item (D).
(F) To be eligible for an award, the
applicant firm shall certify that not less

HB4687 - 96 - LRB103 36052 LNS 66139 b
than prevailing wage, as determined pursuant
to the Illinois Prevailing Wage Act, was or
will be paid to employees who are engaged in
construction activities associated with a
selected project.
(4) The Agency shall open the first block of
annual capacity for the category described in item
(iv) of subparagraph (K) of this paragraph (1).
The first block of annual capacity for item (iv)
shall be for at least 50 megawatts of total
nameplate capacity. Renewable energy credit prices
shall be fixed, without further adjustment under
any other provision of this Act or for any other
reason, at the price in the last open block in the
category described in item (ii) of subparagraph
(K) of this paragraph (1). Pricing for future
blocks of annual capacity for this category may be
adjusted in the Agency's second revision to its
Long-Term Renewable Resources Procurement Plan.
Projects in this category shall be subject to the
contract terms outlined in item (iv) of
subparagraph (L) of this paragraph (1).
(5) The Agency shall open the equivalent of 2
years of annual capacity for the category
described in item (v) of subparagraph (K) of this
paragraph (1). The first block of annual capacity

HB4687 - 97 - LRB103 36052 LNS 66139 b
for item (v) shall be for at least 10 megawatts of
total nameplate capacity. Notwithstanding the
provisions of item (v) of subparagraph (K) of this
paragraph (1), for the purpose of this initial
block, the agency shall accept new project
applications intended to increase the diversity of
areas hosting community solar projects, the
business models of projects, and the size of
projects, as described by the Agency in its
long-term renewable resources procurement plan
that is approved as of the effective date of this
amendatory Act of the 102nd General Assembly.
Projects in this category shall be subject to the
contract terms outlined in item (iii) of
subsection (L) of this paragraph (1).
(6) The Agency shall open the first blocks of
annual capacity for the category described in item
(vi) of subparagraph (K) of this paragraph (1),
with allocations of capacity within the block
generally matching the historical share of block
capacity allocated between the category described
in items (i) and (ii) of subparagraph (K) of this
paragraph (1). The first two blocks of annual
capacity for item (vi) shall be for at least 75
megawatts of total nameplate capacity. The price
of renewable energy credits for the blocks of

HB4687 - 98 - LRB103 36052 LNS 66139 b
capacity shall be 4% less than the price of the
last open blocks in the categories described in
items (i) and (ii) of subparagraph (K) of this
paragraph (1). Pricing for future blocks of annual
capacity for this category may be adjusted in the
Agency's second revision to its Long-Term
Renewable Resources Procurement Plan. Projects in
this category shall be subject to the applicable
contract terms outlined in items (ii) and (iii) of
subparagraph (L) of this paragraph (1).
(v) Upon the effective date of this amendatory Act
of the 102nd General Assembly, for all competitive
procurements and any procurements of renewable energy
credit from new utility-scale wind and new
utility-scale photovoltaic projects, the Agency shall
procure indexed renewable energy credits and direct
respondents to offer a strike price.
(1) The purchase price of the indexed
renewable energy credit payment shall be
calculated for each settlement period. That
payment, for any settlement period, shall be equal
to the difference resulting from subtracting the
strike price from the index price for that
settlement period. If this difference results in a
negative number, the indexed REC counterparty
shall owe the seller the absolute value multiplied

HB4687 - 99 - LRB103 36052 LNS 66139 b
by the quantity of energy produced in the relevant
settlement period. If this difference results in a
positive number, the seller shall owe the indexed
REC counterparty this amount multiplied by the
quantity of energy produced in the relevant
settlement period.
(2) Parties shall cash settle every month,
summing up all settlements (both positive and
negative, if applicable) for the prior month.
(3) To ensure funding in the annual budget
established under subparagraph (E) for indexed
renewable energy credit procurements for each year
of the term of such contracts, which must have a
minimum tenure of 20 calendar years, the
procurement administrator, Agency, Commission
staff, and procurement monitor shall quantify the
annual cost of the contract by utilizing an
industry-standard, third-party forward price curve
for energy at the appropriate hub or load zone,
including the estimated magnitude and timing of
the price effects related to federal carbon
controls. Each forward price curve shall contain a
specific value of the forecasted market price of
electricity for each annual delivery year of the
contract. For procurement planning purposes, the
impact on the annual budget for the cost of

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indexed renewable energy credits for each delivery
year shall be determined as the expected annual
contract expenditure for that year, equaling the
difference between (i) the sum across all relevant
contracts of the applicable strike price
multiplied by contract quantity and (ii) the sum
across all relevant contracts of the forward price
curve for the applicable load zone for that year
multiplied by contract quantity. The contracting
utility shall not assume an obligation in excess
of the estimated annual cost of the contracts for
indexed renewable energy credits. Forward curves
shall be revised on an annual basis as updated
forward price curves are released and filed with
the Commission in the proceeding approving the
Agency's most recent long-term renewable resources
procurement plan. If the expected contract spend
is higher or lower than the total quantity of
contracts multiplied by the forward price curve
value for that year, the forward price curve shall
be updated by the procurement administrator, in
consultation with the Agency, Commission staff,
and procurement monitors, using then-currently
available price forecast data and additional
budget dollars shall be obligated or reobligated
as appropriate.

HB4687 - 101 - LRB103 36052 LNS 66139 b
(4) To ensure that indexed renewable energy
credit prices remain predictable and affordable,
the Agency may consider the institution of a price
collar on REC prices paid under indexed renewable
energy credit procurements establishing floor and
ceiling REC prices applicable to indexed REC
contract prices. Any price collars applicable to
indexed REC procurements shall be proposed by the
Agency through its long-term renewable resources
procurement plan.
(vi) All procurements under this subparagraph (G),
including the procurement of renewable energy credits
from hydropower facilities, shall comply with the
geographic requirements in subparagraph (I) of this
paragraph (1) and shall follow the procurement
processes and procedures described in this Section and
Section 16-111.5 of the Public Utilities Act to the
extent practicable, and these processes and procedures
may be expedited to accommodate the schedule
established by this subparagraph (G).
(vii) On and after the effective date of this
amendatory Act of the 103rd General Assembly, for all
procurements of renewable energy credits from
hydropower facilities, the Agency shall establish
contract terms designed to optimize existing
hydropower facilities through modernization or

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retooling and establish new hydropower facilities at
existing dams. Procurements made under this item (vii)
shall prioritize projects located in designated
environmental justice communities, as defined in
subsection (b) of Section 1-56 of this Act, or in
projects located in units of local government with
median incomes that do not exceed 82% of the median
income of the State.
(H) The procurement of renewable energy resources for
a given delivery year shall be reduced as described in
this subparagraph (H) if an alternative retail electric
supplier meets the requirements described in this
subparagraph (H).
(i) Within 45 days after June 1, 2017 (the
effective date of Public Act 99-906), an alternative
retail electric supplier or its successor shall submit
an informational filing to the Illinois Commerce
Commission certifying that, as of December 31, 2015,
the alternative retail electric supplier owned one or
more electric generating facilities that generates
renewable energy resources as defined in Section 1-10
of this Act, provided that such facilities are not
powered by wind or photovoltaics, and the facilities
generate one renewable energy credit for each
megawatthour of energy produced from the facility.
The informational filing shall identify each

HB4687 - 103 - LRB103 36052 LNS 66139 b
facility that was eligible to satisfy the alternative
retail electric supplier's obligations under Section
16-115D of the Public Utilities Act as described in
this item (i).
(ii) For a given delivery year, the alternative
retail electric supplier may elect to supply its
retail customers with renewable energy credits from
the facility or facilities described in item (i) of
this subparagraph (H) that continue to be owned by the
alternative retail electric supplier.
(iii) The alternative retail electric supplier
shall notify the Agency and the applicable utility, no
later than February 28 of the year preceding the
applicable delivery year or 15 days after June 1, 2017
(the effective date of Public Act 99-906), whichever
is later, of its election under item (ii) of this
subparagraph (H) to supply renewable energy credits to
retail customers of the utility. Such election shall
identify the amount of renewable energy credits to be
supplied by the alternative retail electric supplier
to the utility's retail customers and the source of
the renewable energy credits identified in the
informational filing as described in item (i) of this
subparagraph (H), subject to the following
limitations:
For the delivery year beginning June 1, 2018,

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the maximum amount of renewable energy credits to
be supplied by an alternative retail electric
supplier under this subparagraph (H) shall be 68%
multiplied by 25% multiplied by 14.5% multiplied
by the amount of metered electricity
(megawatt-hours) delivered by the alternative
retail electric supplier to Illinois retail
customers during the delivery year ending May 31,
2016.
For delivery years beginning June 1, 2019 and
each year thereafter, the maximum amount of
renewable energy credits to be supplied by an
alternative retail electric supplier under this
subparagraph (H) shall be 68% multiplied by 50%
multiplied by 16% multiplied by the amount of
metered electricity (megawatt-hours) delivered by
the alternative retail electric supplier to
Illinois retail customers during the delivery year
ending May 31, 2016, provided that the 16% value
shall increase by 1.5% each delivery year
thereafter to 25% by the delivery year beginning
June 1, 2025, and thereafter the 25% value shall
apply to each delivery year.
For each delivery year, the total amount of
renewable energy credits supplied by all alternative
retail electric suppliers under this subparagraph (H)

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shall not exceed 9% of the Illinois target renewable
energy credit quantity. The Illinois target renewable
energy credit quantity for the delivery year beginning
June 1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered in the
delivery year immediately preceding that delivery
year, provided that the 14.5% shall increase by 1.5%
each delivery year thereafter to 25% by the delivery
year beginning June 1, 2025, and thereafter the 25%
value shall apply to each delivery year.
If the requirements set forth in items (i) through
(iii) of this subparagraph (H) are met, the charges
that would otherwise be applicable to the retail
customers of the alternative retail electric supplier
under paragraph (6) of this subsection (c) for the
applicable delivery year shall be reduced by the ratio
of the quantity of renewable energy credits supplied
by the alternative retail electric supplier compared
to that supplier's target renewable energy credit
quantity. The supplier's target renewable energy
credit quantity for the delivery year beginning June
1, 2018 is 14.5% multiplied by the total amount of
metered electricity (megawatt-hours) delivered by the
alternative retail supplier in that delivery year,
provided that the 14.5% shall increase by 1.5% each
delivery year thereafter to 25% by the delivery year

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beginning June 1, 2025, and thereafter the 25% value
shall apply to each delivery year.
On or before April 1 of each year, the Agency shall
annually publish a report on its website that
identifies the aggregate amount of renewable energy
credits supplied by alternative retail electric
suppliers under this subparagraph (H).
(I) The Agency shall design its long-term renewable
energy procurement plan to maximize the State's interest
in the health, safety, and welfare of its residents,
including but not limited to minimizing sulfur dioxide,
nitrogen oxide, particulate matter and other pollution
that adversely affects public health in this State,
increasing fuel and resource diversity in this State,
enhancing the reliability and resiliency of the
electricity distribution system in this State, meeting
goals to limit carbon dioxide emissions under federal or
State law, and contributing to a cleaner and healthier
environment for the citizens of this State. In order to
further these legislative purposes, renewable energy
credits shall be eligible to be counted toward the
renewable energy requirements of this subsection (c) if
they are generated from facilities located in this State.
The Agency may qualify renewable energy credits from
facilities located in states adjacent to Illinois or
renewable energy credits associated with the electricity

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generated by a utility-scale wind energy facility or
utility-scale photovoltaic facility and transmitted by a
qualifying direct current project described in subsection
(b-5) of Section 8-406 of the Public Utilities Act to a
delivery point on the electric transmission grid located
in this State or a state adjacent to Illinois, if the
generator demonstrates and the Agency determines that the
operation of such facility or facilities will help promote
the State's interest in the health, safety, and welfare of
its residents based on the public interest criteria
described above. For the purposes of this Section,
renewable resources that are delivered via a high voltage
direct current converter station located in Illinois shall
be deemed generated in Illinois at the time and location
the energy is converted to alternating current by the high
voltage direct current converter station if the high
voltage direct current transmission line: (i) after the
effective date of this amendatory Act of the 102nd General
Assembly, was constructed with a project labor agreement;
(ii) is capable of transmitting electricity at 525kv;
(iii) has an Illinois converter station located and
interconnected in the region of the PJM Interconnection,
LLC; (iv) does not operate as a public utility; and (v) if
the high voltage direct current transmission line was
energized after June 1, 2023. To ensure that the public
interest criteria are applied to the procurement and given

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full effect, the Agency's long-term procurement plan shall
describe in detail how each public interest factor shall
be considered and weighted for facilities located in
states adjacent to Illinois.
(J) In order to promote the competitive development of
renewable energy resources in furtherance of the State's
interest in the health, safety, and welfare of its
residents, renewable energy credits shall not be eligible
to be counted toward the renewable energy requirements of
this subsection (c) if they are sourced from a generating
unit whose costs were being recovered through rates
regulated by this State or any other state or states on or
after January 1, 2017. Each contract executed to purchase
renewable energy credits under this subsection (c) shall
provide for the contract's termination if the costs of the
generating unit supplying the renewable energy credits
subsequently begin to be recovered through rates regulated
by this State or any other state or states; and each
contract shall further provide that, in that event, the
supplier of the credits must return 110% of all payments
received under the contract. Amounts returned under the
requirements of this subparagraph (J) shall be retained by
the utility and all of these amounts shall be used for the
procurement of additional renewable energy credits from
new wind or new photovoltaic resources as defined in this
subsection (c). The long-term plan shall provide that

HB4687 - 109 - LRB103 36052 LNS 66139 b
these renewable energy credits shall be procured in the
next procurement event.
Notwithstanding the limitations of this subparagraph
(J), renewable energy credits sourced from generating
units that are constructed, purchased, owned, or leased by
an electric utility as part of an approved project,
program, or pilot under Section 1-56 of this Act shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c), regardless of how the
costs of these units are recovered. As long as a
generating unit or an identifiable portion of a generating
unit has not had and does not have its costs recovered
through rates regulated by this State or any other state,
HVDC renewable energy credits associated with that
generating unit or identifiable portion thereof shall be
eligible to be counted toward the renewable energy
requirements of this subsection (c).
(K) The long-term renewable resources procurement plan
developed by the Agency in accordance with subparagraph
(A) of this paragraph (1) shall include an Adjustable
Block program for the procurement of renewable energy
credits from new photovoltaic projects that are
distributed renewable energy generation devices or new
photovoltaic community renewable generation projects. The
Adjustable Block program shall be generally designed to
provide for the steady, predictable, and sustainable

HB4687 - 110 - LRB103 36052 LNS 66139 b
growth of new solar photovoltaic development in Illinois.
To this end, the Adjustable Block program shall provide a
transparent annual schedule of prices and quantities to
enable the photovoltaic market to scale up and for
renewable energy credit prices to adjust at a predictable
rate over time. The prices set by the Adjustable Block
program can be reflected as a set value or as the product
of a formula.
The Adjustable Block program shall include for each
category of eligible projects for each delivery year: a
single block of nameplate capacity, a price for renewable
energy credits within that block, and the terms and
conditions for securing a spot on a waitlist once the
block is fully committed or reserved. Except as outlined
below, the waitlist of projects in a given year will carry
over to apply to the subsequent year when another block is
opened. Only projects energized on or after June 1, 2017
shall be eligible for the Adjustable Block program. For
each category for each delivery year the Agency shall
determine the amount of generation capacity in each block,
and the purchase price for each block, provided that the
purchase price provided and the total amount of generation
in all blocks for all categories shall be sufficient to
meet the goals in this subsection (c). The Agency shall
strive to issue a single block sized to provide for
stability and market growth. The Agency shall establish

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program eligibility requirements that ensure that projects
that enter the program are sufficiently mature to indicate
a demonstrable path to completion. The Agency may
periodically review its prior decisions establishing the
amount of generation capacity in each block, and the
purchase price for each block, and may propose, on an
expedited basis, changes to these previously set values,
including but not limited to redistributing these amounts
and the available funds as necessary and appropriate,
subject to Commission approval as part of the periodic
plan revision process described in Section 16-111.5 of the
Public Utilities Act. The Agency may define different
block sizes, purchase prices, or other distinct terms and
conditions for projects located in different utility
service territories if the Agency deems it necessary to
meet the goals in this subsection (c).
The Adjustable Block program shall include the
following categories in at least the following amounts:
(i) At least 20% from distributed renewable energy
generation devices with a nameplate capacity of no
more than 25 kilowatts.
(ii) At least 20% from distributed renewable
energy generation devices with a nameplate capacity of
more than 25 kilowatts and no more than 5,000
kilowatts. The Agency may create sub-categories within
this category to account for the differences between

HB4687 - 112 - LRB103 36052 LNS 66139 b
projects for small commercial customers, large
commercial customers, and public or non-profit
customers.
(iii) At least 30% from photovoltaic community
renewable generation projects. Capacity for this
category for the first 2 delivery years after the
effective date of this amendatory Act of the 102nd
General Assembly shall be allocated to waitlist
projects as provided in paragraph (3) of item (iv) of
subparagraph (G). Starting in the third delivery year
after the effective date of this amendatory Act of the
102nd General Assembly or earlier if the Agency
determines there is additional capacity needed for to
meet previous delivery year requirements, the
following shall apply:
(1) the Agency shall select projects on a
first-come, first-serve basis, however the Agency
may suggest additional methods to prioritize
projects that are submitted at the same time;
(2) projects shall have subscriptions of 25 kW
or less for at least 50% of the facility's
nameplate capacity and the Agency shall price the
renewable energy credits with that as a factor;
(3) projects shall not be colocated with one
or more other community renewable generation
projects, as defined in the Agency's first revised

HB4687 - 113 - LRB103 36052 LNS 66139 b
long-term renewable resources procurement plan
approved by the Commission on February 18, 2020,
such that the aggregate nameplate capacity exceeds
5,000 kilowatts; and
(4) projects greater than 2 MW may not apply
until after the approval of the Agency's revised
Long-Term Renewable Resources Procurement Plan
after the effective date of this amendatory Act of
the 102nd General Assembly.
(iv) At least 15% from distributed renewable
generation devices or photovoltaic community renewable
generation projects installed on public school land.
The Agency may create subcategories within this
category to account for the differences between
project size or location. Projects located within
environmental justice communities or within
Organizational Units that fall within Tier 1 or Tier 2
shall be given priority. Each of the Agency's periodic
updates to its long-term renewable resources
procurement plan to incorporate the procurement
described in this subparagraph (iv) shall also include
the proposed quantities or blocks, pricing, and
contract terms applicable to the procurement as
indicated herein. In each such update and procurement,
the Agency shall set the renewable energy credit price
and establish payment terms for the renewable energy

HB4687 - 114 - LRB103 36052 LNS 66139 b
credits procured pursuant to this subparagraph (iv)
that make it feasible and affordable for public
schools to install photovoltaic distributed renewable
energy devices on their premises, including, but not
limited to, those public schools subject to the
prioritization provisions of this subparagraph. For
the purposes of this item (iv):
"Environmental Justice Community" shall have the
same meaning set forth in the Agency's long-term
renewable resources procurement plan;
"Organization Unit", "Tier 1" and "Tier 2" shall
have the meanings set for in Section 18-8.15 of the
School Code;
"Public schools" shall have the meaning set forth
in Section 1-3 of the School Code and includes public
institutions of higher education, as defined in the
Board of Higher Education Act.
(v) At least 5% from community-driven community
solar projects intended to provide more direct and
tangible connection and benefits to the communities
which they serve or in which they operate and,
additionally, to increase the variety of community
solar locations, models, and options in Illinois. As
part of its long-term renewable resources procurement
plan, the Agency shall develop selection criteria for
projects participating in this category. Nothing in

HB4687 - 115 - LRB103 36052 LNS 66139 b
this Section shall preclude the Agency from creating a
selection process that maximizes community ownership
and community benefits in selecting projects to
receive renewable energy credits. Selection criteria
shall include:
(1) community ownership or community
wealth-building;
(2) additional direct and indirect community
benefit, beyond project participation as a
subscriber, including, but not limited to,
economic, environmental, social, cultural, and
physical benefits;
(3) meaningful involvement in project
organization and development by community members
or nonprofit organizations or public entities
located in or serving the community;
(4) engagement in project operations and
management by nonprofit organizations, public
entities, or community members; and
(5) whether a project is developed in response
to a site-specific RFP developed by community
members or a nonprofit organization or public
entity located in or serving the community.
Selection criteria may also prioritize projects
that:
(1) are developed in collaboration with or to

HB4687 - 116 - LRB103 36052 LNS 66139 b
provide complementary opportunities for the Clean
Jobs Workforce Network Program, the Illinois
Climate Works Preapprenticeship Program, the
Returning Residents Clean Jobs Training Program,
the Clean Energy Contractor Incubator Program, or
the Clean Energy Primes Contractor Accelerator
Program;
(2) increase the diversity of locations of
community solar projects in Illinois, including by
locating in urban areas and population centers;
(3) are located in Equity Investment Eligible
Communities;
(4) are not greenfield projects;
(5) serve only local subscribers;
(6) have a nameplate capacity that does not
exceed 500 kW;
(7) are developed by an equity eligible
contractor; or
(8) otherwise meaningfully advance the goals
of providing more direct and tangible connection
and benefits to the communities which they serve
or in which they operate and increasing the
variety of community solar locations, models, and
options in Illinois.
For the purposes of this item (v):
"Community" means a social unit in which people

HB4687 - 117 - LRB103 36052 LNS 66139 b
come together regularly to effect change; a social
unit in which participants are marked by a cooperative
spirit, a common purpose, or shared interests or
characteristics; or a space understood by its
residents to be delineated through geographic
boundaries or landmarks.
"Community benefit" means a range of services and
activities that provide affirmative, economic,
environmental, social, cultural, or physical value to
a community; or a mechanism that enables economic
development, high-quality employment, and education
opportunities for local workers and residents, or
formal monitoring and oversight structures such that
community members may ensure that those services and
activities respond to local knowledge and needs.
"Community ownership" means an arrangement in
which an electric generating facility is, or over time
will be, in significant part, owned collectively by
members of the community to which an electric
generating facility provides benefits; members of that
community participate in decisions regarding the
governance, operation, maintenance, and upgrades of
and to that facility; and members of that community
benefit from regular use of that facility.
Terms and guidance within these criteria that are
not defined in this item (v) shall be defined by the

HB4687 - 118 - LRB103 36052 LNS 66139 b
Agency, with stakeholder input, during the development
of the Agency's long-term renewable resources
procurement plan. The Agency shall develop regular
opportunities for projects to submit applications for
projects under this category, and develop selection
criteria that gives preference to projects that better
meet individual criteria as well as projects that
address a higher number of criteria.
(vi) At least 10% from distributed renewable
energy generation devices, which includes distributed
renewable energy devices with a nameplate capacity
under 5,000 kilowatts or photovoltaic community
renewable generation projects, from applicants that
are equity eligible contractors. The Agency may create
subcategories within this category to account for the
differences between project size and type. The Agency
shall propose to increase the percentage in this item
(vi) over time to 40% based on factors, including, but
not limited to, the number of equity eligible
contractors and capacity used in this item (vi) in
previous delivery years.
The Agency shall propose a payment structure for
contracts executed pursuant to this paragraph under
which, upon a demonstration of qualification or need,
applicant firms are advanced capital disbursed after
contract execution but before the contracted project's

HB4687 - 119 - LRB103 36052 LNS 66139 b
energization. The amount or percentage of capital
advanced prior to project energization shall be
sufficient to both cover any increase in development
costs resulting from prevailing wage requirements or
project-labor agreements, and designed to overcome
barriers in access to capital faced by equity eligible
contractors. The amount or percentage of advanced
capital may vary by subcategory within this category
and by an applicant's demonstration of need, with such
levels to be established through the Long-Term
Renewable Resources Procurement Plan authorized under
subparagraph (A) of paragraph (1) of subsection (c) of
this Section.
Contracts developed featuring capital advanced
prior to a project's energization shall feature
provisions to ensure both the successful development
of applicant projects and the delivery of the
renewable energy credits for the full term of the
contract, including ongoing collateral requirements
and other provisions deemed necessary by the Agency,
and may include energization timelines longer than for
comparable project types. The percentage or amount of
capital advanced prior to project energization shall
not operate to increase the overall contract value,
however contracts executed under this subparagraph may
feature renewable energy credit prices higher than

HB4687 - 120 - LRB103 36052 LNS 66139 b
those offered to similar projects participating in
other categories. Capital advanced prior to
energization shall serve to reduce the ratable
payments made after energization under items (ii) and
(iii) of subparagraph (L) or payments made for each
renewable energy credit delivery under item (iv) of
subparagraph (L).
(vii) The remaining capacity shall be allocated by
the Agency in order to respond to market demand. The
Agency shall allocate any discretionary capacity prior
to the beginning of each delivery year.
To the extent there is uncontracted capacity from any
block in any of categories (i) through (vi) at the end of a
delivery year, the Agency shall redistribute that capacity
to one or more other categories giving priority to
categories with projects on a waitlist. The redistributed
capacity shall be added to the annual capacity in the
subsequent delivery year, and the price for renewable
energy credits shall be the price for the new delivery
year. Redistributed capacity shall not be considered
redistributed when determining whether the goals in this
subsection (K) have been met.
Notwithstanding anything to the contrary, as the
Agency increases the capacity in item (vi) to 40% over
time, the Agency may reduce the capacity of items (i)
through (v) proportionate to the capacity of the

HB4687 - 121 - LRB103 36052 LNS 66139 b
categories of projects in item (vi), to achieve a balance
of project types.
The Adjustable Block program shall be designed to
ensure that renewable energy credits are procured from
projects in diverse locations and are not concentrated in
a few regional areas.
(L) Notwithstanding provisions for advancing capital
prior to project energization found in item (vi) of
subparagraph (K), the procurement of photovoltaic
renewable energy credits under items (i) through (vi) of
subparagraph (K) of this paragraph (1) shall otherwise be
subject to the following contract and payment terms:
(i) (Blank).
(ii) For those renewable energy credits that
qualify and are procured under item (i) of
subparagraph (K) of this paragraph (1), and any
similar category projects that are procured under item
(vi) of subparagraph (K) of this paragraph (1) that
qualify and are procured under item (vi), the contract
length shall be 15 years. The renewable energy credit
delivery contract value shall be paid in full, based
on the estimated generation during the first 15 years
of operation, by the contracting utilities at the time
that the facility producing the renewable energy
credits is interconnected at the distribution system
level of the utility and verified as energized and

HB4687 - 122 - LRB103 36052 LNS 66139 b
compliant by the Program Administrator. The electric
utility shall receive and retire all renewable energy
credits generated by the project for the first 15
years of operation. Renewable energy credits generated
by the project thereafter shall not be transferred
under the renewable energy credit delivery contract
with the counterparty electric utility.
(iii) For those renewable energy credits that
qualify and are procured under item (ii) and (v) of
subparagraph (K) of this paragraph (1) and any like
projects similar category that qualify and are
procured under item (vi), the contract length shall be
15 years. 15% of the renewable energy credit delivery
contract value, based on the estimated generation
during the first 15 years of operation, shall be paid
by the contracting utilities at the time that the
facility producing the renewable energy credits is
interconnected at the distribution system level of the
utility and verified as energized and compliant by the
Program Administrator. The remaining portion shall be
paid ratably over the subsequent 6-year period. The
electric utility shall receive and retire all
renewable energy credits generated by the project for
the first 15 years of operation. Renewable energy
credits generated by the project thereafter shall not
be transferred under the renewable energy credit

HB4687 - 123 - LRB103 36052 LNS 66139 b
delivery contract with the counterparty electric
utility.
(iv) For those renewable energy credits that
qualify and are procured under items (iii) and (iv) of
subparagraph (K) of this paragraph (1), and any like
projects that qualify and are procured under item
(vi), the renewable energy credit delivery contract
length shall be 20 years and shall be paid over the
delivery term, not to exceed during each delivery year
the contract price multiplied by the estimated annual
renewable energy credit generation amount. If
generation of renewable energy credits during a
delivery year exceeds the estimated annual generation
amount, the excess renewable energy credits shall be
carried forward to future delivery years and shall not
expire during the delivery term. If generation of
renewable energy credits during a delivery year,
including carried forward excess renewable energy
credits, if any, is less than the estimated annual
generation amount, payments during such delivery year
will not exceed the quantity generated plus the
quantity carried forward multiplied by the contract
price. The electric utility shall receive all
renewable energy credits generated by the project
during the first 20 years of operation and retire all
renewable energy credits paid for under this item (iv)

HB4687 - 124 - LRB103 36052 LNS 66139 b
and return at the end of the delivery term all
renewable energy credits that were not paid for.
Renewable energy credits generated by the project
thereafter shall not be transferred under the
renewable energy credit delivery contract with the
counterparty electric utility. Notwithstanding the
preceding, for those projects participating under item
(iii) of subparagraph (K), the contract price for a
delivery year shall be based on subscription levels as
measured on the higher of the first business day of the
delivery year or the first business day 6 months after
the first business day of the delivery year.
Subscription of 90% of nameplate capacity or greater
shall be deemed to be fully subscribed for the
purposes of this item (iv). For projects receiving a
20-year delivery contract, REC prices shall be
adjusted downward for consistency with the incentive
levels previously determined to be necessary to
support projects under 15-year delivery contracts,
taking into consideration any additional new
requirements placed on the projects, including, but
not limited to, labor standards.
(v) Each contract shall include provisions to
ensure the delivery of the estimated quantity of
renewable energy credits and ongoing collateral
requirements and other provisions deemed appropriate

HB4687 - 125 - LRB103 36052 LNS 66139 b
by the Agency.
(vi) The utility shall be the counterparty to the
contracts executed under this subparagraph (L) that
are approved by the Commission under the process
described in Section 16-111.5 of the Public Utilities
Act. No contract shall be executed for an amount that
is less than one renewable energy credit per year.
(vii) If, at any time, approved applications for
the Adjustable Block program exceed funds collected by
the electric utility or would cause the Agency to
exceed the limitation described in subparagraph (E) of
this paragraph (1) on the amount of renewable energy
resources that may be procured, then the Agency may
consider future uncommitted funds to be reserved for
these contracts on a first-come, first-served basis.
(viii) Nothing in this Section shall require the
utility to advance any payment or pay any amounts that
exceed the actual amount of revenues anticipated to be
collected by the utility under paragraph (6) of this
subsection (c) and subsection (k) of Section 16-108 of
the Public Utilities Act inclusive of eligible funds
collected in prior years and alternative compliance
payments for use by the utility, and contracts
executed under this Section shall expressly
incorporate this limitation.
(ix) Notwithstanding other requirements of this

HB4687 - 126 - LRB103 36052 LNS 66139 b
subparagraph (L), no modification shall be required to
Adjustable Block program contracts if they were
already executed prior to the establishment, approval,
and implementation of new contract forms as a result
of this amendatory Act of the 102nd General Assembly.
(x) Contracts may be assignable, but only to
entities first deemed by the Agency to have met
program terms and requirements applicable to direct
program participation. In developing contracts for the
delivery of renewable energy credits, the Agency shall
be permitted to establish fees applicable to each
contract assignment.
(M) The Agency shall be authorized to retain one or
more experts or expert consulting firms to develop,
administer, implement, operate, and evaluate the
Adjustable Block program described in subparagraph (K) of
this paragraph (1), and the Agency shall retain the
consultant or consultants in the same manner, to the
extent practicable, as the Agency retains others to
administer provisions of this Act, including, but not
limited to, the procurement administrator. The selection
of experts and expert consulting firms and the procurement
process described in this subparagraph (M) are exempt from
the requirements of Section 20-10 of the Illinois
Procurement Code, under Section 20-10 of that Code. The
Agency shall strive to minimize administrative expenses in

HB4687 - 127 - LRB103 36052 LNS 66139 b
the implementation of the Adjustable Block program.
The Program Administrator may charge application fees
to participating firms to cover the cost of program
administration. Any application fee amounts shall
initially be determined through the long-term renewable
resources procurement plan, and modifications to any
application fee that deviate more than 25% from the
Commission's approved value must be approved by the
Commission as a long-term plan revision under Section
16-111.5 of the Public Utilities Act. The Agency shall
consider stakeholder feedback when making adjustments to
application fees and shall notify stakeholders in advance
of any planned changes.
In addition to covering the costs of program
administration, the Agency, in conjunction with its
Program Administrator, may also use the proceeds of such
fees charged to participating firms to support public
education and ongoing regional and national coordination
with nonprofit organizations, public bodies, and others
engaged in the implementation of renewable energy
incentive programs or similar initiatives. This work may
include developing papers and reports, hosting regional
and national conferences, and other work deemed necessary
by the Agency to position the State of Illinois as a
national leader in renewable energy incentive program
development and administration.

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The Agency and its consultant or consultants shall
monitor block activity, share program activity with
stakeholders and conduct quarterly meetings to discuss
program activity and market conditions. If necessary, the
Agency may make prospective administrative adjustments to
the Adjustable Block program design, such as making
adjustments to purchase prices as necessary to achieve the
goals of this subsection (c). Program modifications to any
block price that do not deviate from the Commission's
approved value by more than 10% shall take effect
immediately and are not subject to Commission review and
approval. Program modifications to any block price that
deviate more than 10% from the Commission's approved value
must be approved by the Commission as a long-term plan
amendment under Section 16-111.5 of the Public Utilities
Act. The Agency shall consider stakeholder feedback when
making adjustments to the Adjustable Block design and
shall notify stakeholders in advance of any planned
changes.
The Agency and its program administrators for both the
Adjustable Block program and the Illinois Solar for All
Program, consistent with the requirements of this
subsection (c) and subsection (b) of Section 1-56 of this
Act, shall propose the Adjustable Block program terms,
conditions, and requirements, including the prices to be
paid for renewable energy credits, where applicable, and

HB4687 - 129 - LRB103 36052 LNS 66139 b
requirements applicable to participating entities and
project applications, through the development, review, and
approval of the Agency's long-term renewable resources
procurement plan described in this subsection (c) and
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. Terms, conditions, and requirements
for program participation shall include the following:
(i) The Agency shall establish a registration
process for entities seeking to qualify for
program-administered incentive funding and establish
baseline qualifications for vendor approval. The
Agency must maintain a list of approved entities on
each program's website, and may revoke a vendor's
ability to receive program-administered incentive
funding status upon a determination that the vendor
failed to comply with contract terms, the law, or
other program requirements.
(ii) The Agency shall establish program
requirements and minimum contract terms to ensure
projects are properly installed and produce their
expected amounts of energy. Program requirements may
include on-site inspections and photo documentation of
projects under construction. The Agency may require
repairs, alterations, or additions to remedy any
material deficiencies discovered. Vendors who have a
disproportionately high number of deficient systems

HB4687 - 130 - LRB103 36052 LNS 66139 b
may lose their eligibility to continue to receive
State-administered incentive funding through Agency
programs and procurements.
(iii) To discourage deceptive marketing or other
bad faith business practices, the Agency may require
direct program participants, including agents
operating on their behalf, to provide standardized
disclosures to a customer prior to that customer's
execution of a contract for the development of a
distributed generation system or a subscription to a
community solar project.
(iv) The Agency shall establish one or multiple
Consumer Complaints Centers to accept complaints
regarding businesses that participate in, or otherwise
benefit from, State-administered incentive funding
through Agency-administered programs. The Agency shall
maintain a public database of complaints with any
confidential or particularly sensitive information
redacted from public entries.
(v) Through a filing in the proceeding for the
approval of its long-term renewable energy resources
procurement plan, the Agency shall provide an annual
written report to the Illinois Commerce Commission
documenting the frequency and nature of complaints and
any enforcement actions taken in response to those
complaints.

HB4687 - 131 - LRB103 36052 LNS 66139 b
(vi) The Agency shall schedule regular meetings
with representatives of the Office of the Attorney
General, the Illinois Commerce Commission, consumer
protection groups, and other interested stakeholders
to share relevant information about consumer
protection, project compliance, and complaints
received.
(vii) To the extent that complaints received
implicate the jurisdiction of the Office of the
Attorney General, the Illinois Commerce Commission, or
local, State, or federal law enforcement, the Agency
shall also refer complaints to those entities as
appropriate.
(N) The Agency shall establish the terms, conditions,
and program requirements for photovoltaic community
renewable generation projects with a goal to expand access
to a broader group of energy consumers, to ensure robust
participation opportunities for residential and small
commercial customers and those who cannot install
renewable energy on their own properties. Subject to
reasonable limitations, any plan approved by the
Commission shall allow subscriptions to community
renewable generation projects to be portable and
transferable. For purposes of this subparagraph (N),
"portable" means that subscriptions may be retained by the
subscriber even if the subscriber relocates or changes its

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

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

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delivery years beginning June 1, 2021, June 1, 2024, June
1, 2027, and June 1, 2030 and additional $10,000,000 shall
be provided to the Department of Commerce and Economic
Opportunity to implement the workforce development
programs and reporting as outlined in Section 16-108.12 of
the Public Utilities Act. In making the determinations
required under this subparagraph (O), the Commission shall
consider the experience and performance under the programs
and any evaluation reports. The Commission shall also
provide for an independent evaluation of those programs on
a periodic basis that are funded under this subparagraph
(O).
(P) All programs and procurements under this
subsection (c) shall be designed to encourage
participating projects to use a diverse and equitable
workforce and a diverse set of contractors, including
minority-owned businesses, disadvantaged businesses,
trade unions, graduates of any workforce training programs
administered under this Act, and small businesses.
The Agency shall develop a method to optimize
procurement of renewable energy credits from proposed
utility-scale projects that are located in communities
eligible to receive Energy Transition Community Grants
pursuant to Section 10-20 of the Energy Community
Reinvestment Act. If this requirement conflicts with other
provisions of law or the Agency determines that full

HB4687 - 135 - LRB103 36052 LNS 66139 b
compliance with the requirements of this subparagraph (P)
would be unreasonably costly or administratively
impractical, the Agency is to propose alternative
approaches to achieve development of renewable energy
resources in communities eligible to receive Energy
Transition Community Grants pursuant to Section 10-20 of
the Energy Community Reinvestment Act or seek an exemption
from this requirement from the Commission.
(Q) Each facility listed in subitems (i) through (ix)
of item (1) of this subparagraph (Q) for which a renewable
energy credit delivery contract is signed after the
effective date of this amendatory Act of the 102nd General
Assembly is subject to the following requirements through
the Agency's long-term renewable resources procurement
plan:
(1) Each facility shall be subject to the
prevailing wage requirements included in the
Prevailing Wage Act. The Agency shall require
verification that all construction performed on the
facility by the renewable energy credit delivery
contract holder, its contractors, or its
subcontractors relating to construction of the
facility is performed by construction employees
receiving an amount for that work equal to or greater
than the general prevailing rate, as that term is
defined in Section 3 of the Prevailing Wage Act. For

HB4687 - 136 - LRB103 36052 LNS 66139 b
purposes of this item (1), "house of worship" means
property that is both (1) used exclusively by a
religious society or body of persons as a place for
religious exercise or religious worship and (2)
recognized as exempt from taxation pursuant to Section
15-40 of the Property Tax Code. This item (1) shall
apply to any the following:
(i) all new utility-scale wind projects;
(ii) all new utility-scale photovoltaic
projects;
(iii) all new brownfield photovoltaic
projects;
(iv) all new photovoltaic community renewable
energy facilities that qualify for item (iii) of
subparagraph (K) of this paragraph (1);
(v) all new community driven community
photovoltaic projects that qualify for item (v) of
subparagraph (K) of this paragraph (1);
(vi) all new photovoltaic projects on public
school land that qualify for item (iv) of
subparagraph (K) of this paragraph (1);
(vii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (i) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential

HB4687 - 137 - LRB103 36052 LNS 66139 b
buildings; and (3) are not houses of worship where
the aggregate capacity including collocated
projects would not exceed 100 kilowatts;
(viii) all new photovoltaic distributed
renewable energy generation devices that (1)
qualify for item (ii) of subparagraph (K) of this
paragraph (1); (2) are not projects that serve
single-family or multi-family residential
buildings; and (3) are not houses of worship where
the aggregate capacity including collocated
projects would not exceed 100 kilowatts;
(ix) all new, modernized, or retooled
hydropower facilities.
(2) Renewable energy credits procured from new
utility-scale wind projects, new utility-scale solar
projects, and new brownfield solar projects pursuant
to Agency procurement events occurring after the
effective date of this amendatory Act of the 102nd
General Assembly must be from facilities built by
general contractors that must enter into a project
labor agreement, as defined by this Act, prior to
construction. The project labor agreement shall be
filed with the Director in accordance with procedures
established by the Agency through its long-term
renewable resources procurement plan. Any information
submitted to the Agency in this item (2) shall be

HB4687 - 138 - LRB103 36052 LNS 66139 b
considered commercially sensitive information. At a
minimum, the project labor agreement must provide the
names, addresses, and occupations of the owner of the
plant and the individuals representing the labor
organization employees participating in the project
labor agreement consistent with the Project Labor
Agreements Act. The agreement must also specify the
terms and conditions as defined by this Act.
(3) It is the intent of this Section to ensure that
economic development occurs across Illinois
communities, that emerging businesses may grow, and
that there is improved access to the clean energy
economy by persons who have greater economic burdens
to success. The Agency shall take into consideration
the unique cost of compliance of this subparagraph (Q)
that might be borne by equity eligible contractors,
shall include such costs when determining the price of
renewable energy credits in the Adjustable Block
program, and shall take such costs into consideration
in a nondiscriminatory manner when comparing bids for
competitive procurements. The Agency shall consider
costs associated with compliance whether in the
development, financing, or construction of projects.
The Agency shall periodically review the assumptions
in these costs and may adjust prices, in compliance
with subparagraph (M) of this paragraph (1).

HB4687 - 139 - LRB103 36052 LNS 66139 b
(R) In its long-term renewable resources procurement
plan, the Agency shall establish a self-direct renewable
portfolio standard compliance program for eligible
self-direct customers that purchase renewable energy
credits from utility-scale wind and solar projects through
long-term agreements for purchase of renewable energy
credits as described in this Section. Such long-term
agreements may include the purchase of energy or other
products on a physical or financial basis and may involve
an alternative retail electric supplier as defined in
Section 16-102 of the Public Utilities Act. This program
shall take effect in the delivery year commencing June 1,
2023.
(1) For the purposes of this subparagraph:
"Eligible self-direct customer" means any retail
customers of an electric utility that serves 3,000,000
or more retail customers in the State and whose total
highest 30-minute demand was more than 10,000
kilowatts, or any retail customers of an electric
utility that serves less than 3,000,000 retail
customers but more than 500,000 retail customers in
the State and whose total highest 15-minute demand was
more than 10,000 kilowatts.
"Retail customer" has the meaning set forth in
Section 16-102 of the Public Utilities Act and
multiple retail customer accounts under the same

HB4687 - 140 - LRB103 36052 LNS 66139 b
corporate parent may aggregate their account demands
to meet the 10,000 kilowatt threshold. The criteria
for determining whether this subparagraph is
applicable to a retail customer shall be based on the
12 consecutive billing periods prior to the start of
the year in which the application is filed.
(2) For renewable energy credits to count toward
the self-direct renewable portfolio standard
compliance program, they must:
(i) qualify as renewable energy credits as
defined in Section 1-10 of this Act;
(ii) be sourced from one or more renewable
energy generating facilities that comply with the
geographic requirements as set forth in
subparagraph (I) of paragraph (1) of subsection
(c) as interpreted through the Agency's long-term
renewable resources procurement plan, or, where
applicable, the geographic requirements that
governed utility-scale renewable energy credits at
the time the eligible self-direct customer entered
into the applicable renewable energy credit
purchase agreement;
(iii) be procured through long-term contracts
with term lengths of at least 10 years either
directly with the renewable energy generating
facility or through a bundled power purchase

HB4687 - 141 - LRB103 36052 LNS 66139 b
agreement, a virtual power purchase agreement, an
agreement between the renewable generating
facility, an alternative retail electric supplier,
and the customer, or such other structure as is
permissible under this subparagraph (R);
(iv) be equivalent in volume to at least 40%
of the eligible self-direct customer's usage,
determined annually by the eligible self-direct
customer's usage during the previous delivery
year, measured to the nearest megawatt-hour;
(v) be retired by or on behalf of the large
energy customer;
(vi) be sourced from new utility-scale wind
projects or new utility-scale solar projects; and
(vii) if the contracts for renewable energy
credits are entered into after the effective date
of this amendatory Act of the 102nd General
Assembly, the new utility-scale wind projects or
new utility-scale solar projects must comply with
the requirements established in subparagraphs (P)
and (Q) of paragraph (1) of this subsection (c)
and subsection (c-10).
(3) The self-direct renewable portfolio standard
compliance program shall be designed to allow eligible
self-direct customers to procure new renewable energy
credits from new utility-scale wind projects or new

HB4687 - 142 - LRB103 36052 LNS 66139 b
utility-scale photovoltaic projects. The Agency shall
annually determine the amount of utility-scale
renewable energy credits it will include each year
from the self-direct renewable portfolio standard
compliance program, subject to receiving qualifying
applications. In making this determination, the Agency
shall evaluate publicly available analyses and studies
of the potential market size for utility-scale
renewable energy long-term purchase agreements by
commercial and industrial energy customers and make
that report publicly available. If demand for
participation in the self-direct renewable portfolio
standard compliance program exceeds availability, the
Agency shall ensure participation is evenly split
between commercial and industrial users to the extent
there is sufficient demand from both customer classes.
Each renewable energy credit procured pursuant to this
subparagraph (R) by a self-direct customer shall
reduce the total volume of renewable energy credits
the Agency is otherwise required to procure from new
utility-scale projects pursuant to subparagraph (C) of
paragraph (1) of this subsection (c) on behalf of
contracting utilities where the eligible self-direct
customer is located. The self-direct customer shall
file an annual compliance report with the Agency
pursuant to terms established by the Agency through

HB4687 - 143 - LRB103 36052 LNS 66139 b
its long-term renewable resources procurement plan to
be eligible for participation in this program.
Customers must provide the Agency with their most
recent electricity billing statements or other
information deemed necessary by the Agency to
demonstrate they are an eligible self-direct customer.
(4) The Commission shall approve a reduction in
the volumetric charges collected pursuant to Section
16-108 of the Public Utilities Act for approved
eligible self-direct customers equivalent to the
anticipated cost of renewable energy credit deliveries
under contracts for new utility-scale wind and new
utility-scale solar entered for each delivery year
after the large energy customer begins retiring
eligible new utility scale renewable energy credits
for self-compliance. The self-direct credit amount
shall be determined annually and is equal to the
estimated portion of the cost authorized by
subparagraph (E) of paragraph (1) of this subsection
(c) that supported the annual procurement of
utility-scale renewable energy credits in the prior
delivery year using a methodology described in the
long-term renewable resources procurement plan,
expressed on a per kilowatthour basis, and does not
include (i) costs associated with any contracts
entered into before the delivery year in which the

HB4687 - 144 - LRB103 36052 LNS 66139 b
customer files the initial compliance report to be
eligible for participation in the self-direct program,
and (ii) costs associated with procuring renewable
energy credits through existing and future contracts
through the Adjustable Block Program, subsection (c-5)
of this Section 1-75, and the Solar for All Program.
The Agency shall assist the Commission in determining
the current and future costs. The Agency must
determine the self-direct credit amount for new and
existing eligible self-direct customers and submit
this to the Commission in an annual compliance filing.
The Commission must approve the self-direct credit
amount by June 1, 2023 and June 1 of each delivery year
thereafter.
(5) Customers described in this subparagraph (R)
shall apply, on a form developed by the Agency, to the
Agency to be designated as a self-direct eligible
customer. Once the Agency determines that a
self-direct customer is eligible for participation in
the program, the self-direct customer will remain
eligible until the end of the term of the contract.
Thereafter, application may be made not less than 12
months before the filing date of the long-term
renewable resources procurement plan described in this
Act. At a minimum, such application shall contain the
following:

HB4687 - 145 - LRB103 36052 LNS 66139 b
(i) the customer's certification that, at the
time of the customer's application, the customer
qualifies to be a self-direct eligible customer,
including documents demonstrating that
qualification;
(ii) the customer's certification that the
customer has entered into or will enter into by
the beginning of the applicable procurement year,
one or more bilateral contracts for new wind
projects or new photovoltaic projects, including
supporting documentation;
(iii) certification that the contract or
contracts for new renewable energy resources are
long-term contracts with term lengths of at least
10 years, including supporting documentation;
(iv) certification of the quantities of
renewable energy credits that the customer will
purchase each year under such contract or
contracts, including supporting documentation;
(v) proof that the contract is sufficient to
produce renewable energy credits to be equivalent
in volume to at least 40% of the large energy
customer's usage from the previous delivery year,
measured to the nearest megawatt-hour; and
(vi) certification that the customer intends
to maintain the contract for the duration of the

HB4687 - 146 - LRB103 36052 LNS 66139 b
length of the contract.
(6) If a customer receives the self-direct credit
but fails to properly procure and retire renewable
energy credits as required under this subparagraph
(R), the Commission, on petition from the Agency and
after notice and hearing, may direct such customer's
utility to recover the cost of the wrongfully received
self-direct credits plus interest through an adder to
charges assessed pursuant to Section 16-108 of the
Public Utilities Act. Self-direct customers who
knowingly fail to properly procure and retire
renewable energy credits and do not notify the Agency
are ineligible for continued participation in the
self-direct renewable portfolio standard compliance
program.
(2) For purposes of this subsection (c), the required
procurement of cost-effective renewable energy resources
for a particular year shall be measured as a percentage of
the actual amount of electricity (megawatt hours) supplied
by the electric utility to eligible retail customers in
the planning year ending immediately prior to the
procurement. For purposes of this subsection (c), the
amount paid per kilowatt hour means the total amount paid
for electric service expressed on a per-kilowatt-hour
basis. For purposes of this subsection (c), the total
amount paid for electric service includes without

HB4687 - 147 - LRB103 36052 LNS 66139 b
limitation amounts paid for supply, transmission,
distribution, surcharges, and add-on taxes.
Notwithstanding the requirements of this subsection
(c), the total of renewable energy resources procured
pursuant to the procurement plan for any single year shall
be reduced by an amount necessary to limit the annual
estimated average net increase due to the costs of these
resources included in the amounts paid by eligible retail
customers in connection with electric service.
The amount of renewable energy resources procured
pursuant to the procurement plan for any single year shall
be reduced by an amount necessary to limit the estimated
average net increase due to the cost of these resources
included in the amounts paid by eligible retail customers
in connection with electric service to no more than the
greater of 2.015% of the amount paid per kilowatt-hour by
those customers the incremental amount per kilowatt-hour
paid for these resources.
(Blank).
(3) Cost-effective renewable energy resources located
in Illinois and in states that adjoin Illinois may be
counted toward compliance with the standards set forth in
paragraph (1) of this subsection (c). If those
cost-effective resources are not available in Illinois or
in states that adjoin Illinois, they shall be purchased
elsewhere and shall be counted toward compliance. (Blank).

HB4687 - 148 - LRB103 36052 LNS 66139 b
(4) The electric utility shall retire all renewable
energy credits used to comply with the standard.
(5) Beginning with the year commencing June 1, 2010
2010 delivery year and ending June 1, 2017, an electric
utility subject to this subsection (c) shall apply the
lesser of the maximum alternative compliance payment rate
or the most recent estimated alternative compliance
payment rate for its service territory for the
corresponding compliance period, established pursuant to
subsection (d) of Section 16-115D of the Public Utilities
Act to its retail customers that take service pursuant to
the electric utility's hourly pricing tariff or tariffs.
The electric utility shall retain all amounts collected as
a result of the application of the alternative compliance
payment rate or rates to such customers, and, beginning in
2011, the utility shall include in the information
provided under item (1) of subsection (d) of Section
16-111.5 of the Public Utilities Act the amounts collected
under the alternative compliance payment rate or rates for
the prior year ending May 31. Notwithstanding any
limitation on the procurement of renewable energy
resources imposed by item (2) of this subsection (c), the
Agency shall increase its spending on the purchase of
renewable energy resources to be procured by the electric
utility for the next plan year by an amount equal to the
amounts collected by the utility under the alternative

HB4687 - 149 - LRB103 36052 LNS 66139 b
compliance payment rate or rates in the prior year ending
May 31.
(6) The electric utility shall be entitled to recover
all of its costs associated with the procurement of
renewable energy credits under plans approved under this
Section and Section 16-111.5 of the Public Utilities Act.
These costs shall include associated reasonable expenses
for implementing the procurement programs, including, but
not limited to, the costs of administering and evaluating
the Adjustable Block program, through an automatic
adjustment clause tariff in accordance with subsection (k)
of Section 16-108 of the Public Utilities Act.
(7) Renewable energy credits procured from new
photovoltaic projects or new distributed renewable energy
generation devices under this Section after June 1, 2017
(the effective date of Public Act 99-906) must be procured
from devices installed by a qualified person in compliance
with the requirements of Section 16-128A of the Public
Utilities Act and any rules or regulations adopted
thereunder.
In meeting the renewable energy requirements of this
subsection (c), to the extent feasible and consistent with
State and federal law, the renewable energy credit
procurements, Adjustable Block solar program, and
community renewable generation program shall provide
employment opportunities for all segments of the

HB4687 - 150 - LRB103 36052 LNS 66139 b
population and workforce, including minority-owned and
female-owned business enterprises, and shall not,
consistent with State and federal law, discriminate based
on race or socioeconomic status.
(c-5) (Blank). Procurement of renewable energy credits
from new renewable energy facilities installed at or adjacent
to the sites of electric generating facilities that burn or
burned coal as their primary fuel source.
(1) In addition to the procurement of renewable energy
credits pursuant to long-term renewable resources
procurement plans in accordance with subsection (c) of
this Section and Section 16-111.5 of the Public Utilities
Act, the Agency shall conduct procurement events in
accordance with this subsection (c-5) for the procurement
by electric utilities that served more than 300,000 retail
customers in this State as of January 1, 2019 of renewable
energy credits from new renewable energy facilities to be
installed at or adjacent to the sites of electric
generating facilities that, as of January 1, 2016, burned
coal as their primary fuel source and meet the other
criteria specified in this subsection (c-5). For purposes
of this subsection (c-5), "new renewable energy facility"
means a new utility-scale solar project as defined in this
Section 1-75. The renewable energy credits procured
pursuant to this subsection (c-5) may be included or
counted for purposes of compliance with the amounts of

HB4687 - 151 - LRB103 36052 LNS 66139 b
renewable energy credits required to be procured pursuant
to subsection (c) of this Section to the extent that there
are otherwise shortfalls in compliance with such
requirements. The procurement of renewable energy credits
by electric utilities pursuant to this subsection (c-5)
shall be funded solely by revenues collected from the Coal
to Solar and Energy Storage Initiative Charge provided for
in this subsection (c-5) and subsection (i-5) of Section
16-108 of the Public Utilities Act, shall not be funded by
revenues collected through any of the other funding
mechanisms provided for in subsection (c) of this Section,
and shall not be subject to the limitation imposed by
subsection (c) on charges to retail customers for costs to
procure renewable energy resources pursuant to subsection
(c), and shall not be subject to any other requirements or
limitations of subsection (c).
(2) The Agency shall conduct 2 procurement events to
select owners of electric generating facilities meeting
the eligibility criteria specified in this subsection
(c-5) to enter into long-term contracts to sell renewable
energy credits to electric utilities serving more than
300,000 retail customers in this State as of January 1,
2019. The first procurement event shall be conducted no
later than March 31, 2022, unless the Agency elects to
delay it, until no later than May 1, 2022, due to its
overall volume of work, and shall be to select owners of

HB4687 - 152 - LRB103 36052 LNS 66139 b
electric generating facilities located in this State and
south of federal Interstate Highway 80 that meet the
eligibility criteria specified in this subsection (c-5).
The second procurement event shall be conducted no sooner
than September 30, 2022 and no later than October 31, 2022
and shall be to select owners of electric generating
facilities located anywhere in this State that meet the
eligibility criteria specified in this subsection (c-5).
The Agency shall establish and announce a time period,
which shall begin no later than 30 days prior to the
scheduled date for the procurement event, during which
applicants may submit applications to be selected as
suppliers of renewable energy credits pursuant to this
subsection (c-5). The eligibility criteria for selection
as a supplier of renewable energy credits pursuant to this
subsection (c-5) shall be as follows:
(A) The applicant owns an electric generating
facility located in this State that: (i) as of January
1, 2016, burned coal as its primary fuel to generate
electricity; and (ii) has, or had prior to retirement,
an electric generating capacity of at least 150
megawatts. The electric generating facility can be
either: (i) retired as of the date of the procurement
event; or (ii) still operating as of the date of the
procurement event.
(B) The applicant is not (i) an electric

HB4687 - 153 - LRB103 36052 LNS 66139 b
cooperative as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of or
an entity owned by entities described in (i) or (ii);
and the coal-fueled electric generating facility was
at one time owned, in whole or in part, by a public
utility as defined in Section 3-105 of the Public
Utilities Act.
(C) If participating in the first procurement
event, the applicant proposes and commits to construct
and operate, at the site, and if necessary for
sufficient space on property adjacent to the existing
property, at which the electric generating facility
identified in paragraph (A) is located: (i) a new
renewable energy facility of at least 20 megawatts but
no more than 100 megawatts of electric generating
capacity, and (ii) an energy storage facility having a
storage capacity equal to at least 2 megawatts and at
most 10 megawatts. If participating in the second
procurement event, the applicant proposes and commits
to construct and operate, at the site, and if
necessary for sufficient space on property adjacent to
the existing property, at which the electric
generating facility identified in paragraph (A) is
located: (i) a new renewable energy facility of at

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least 5 megawatts but no more than 20 megawatts of
electric generating capacity, and (ii) an energy
storage facility having a storage capacity equal to at
least 0.5 megawatts and at most one megawatt.
(D) The applicant agrees that the new renewable
energy facility and the energy storage facility will
be constructed or installed by a qualified entity or
entities in compliance with the requirements of
subsection (g) of Section 16-128A of the Public
Utilities Act and any rules adopted thereunder.
(E) The applicant agrees that personnel operating
the new renewable energy facility and the energy
storage facility will have the requisite skills,
knowledge, training, experience, and competence, which
may be demonstrated by completion or current
participation and ultimate completion by employees of
an accredited or otherwise recognized apprenticeship
program for the employee's particular craft, trade, or
skill, including through training and education
courses and opportunities offered by the owner to
employees of the coal-fueled electric generating
facility or by previous employment experience
performing the employee's particular work skill or
function.
(F) The applicant commits that not less than the
prevailing wage, as determined pursuant to the

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Prevailing Wage Act, will be paid to the applicant's
employees engaged in construction activities
associated with the new renewable energy facility and
the new energy storage facility and to the employees
of applicant's contractors engaged in construction
activities associated with the new renewable energy
facility and the new energy storage facility, and
that, on or before the commercial operation date of
the new renewable energy facility, the applicant shall
file a report with the Agency certifying that the
requirements of this subparagraph (F) have been met.
(G) The applicant commits that if selected, it
will negotiate a project labor agreement for the
construction of the new renewable energy facility and
associated energy storage facility that includes
provisions requiring the parties to the agreement to
work together to establish diversity threshold
requirements and to ensure best efforts to meet
diversity targets, improve diversity at the applicable
job site, create diverse apprenticeship opportunities,
and create opportunities to employ former coal-fired
power plant workers.
(H) The applicant commits to enter into a contract
or contracts for the applicable duration to provide
specified numbers of renewable energy credits each
year from the new renewable energy facility to

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electric utilities that served more than 300,000
retail customers in this State as of January 1, 2019,
at a price of $30 per renewable energy credit. The
price per renewable energy credit shall be fixed at
$30 for the applicable duration and the renewable
energy credits shall not be indexed renewable energy
credits as provided for in item (v) of subparagraph
(G) of paragraph (1) of subsection (c) of Section 1-75
of this Act. The applicable duration of each contract
shall be 20 years, unless the applicant is physically
interconnected to the PJM Interconnection, LLC
transmission grid and had a generating capacity of at
least 1,200 megawatts as of January 1, 2021, in which
case the applicable duration of the contract shall be
15 years.
(I) The applicant's application is certified by an
officer of the applicant and by an officer of the
applicant's ultimate parent company, if any.
(3) An applicant may submit applications to contract
to supply renewable energy credits from more than one new
renewable energy facility to be constructed at or adjacent
to one or more qualifying electric generating facilities
owned by the applicant. The Agency may select new
renewable energy facilities to be located at or adjacent
to the sites of more than one qualifying electric
generation facility owned by an applicant to contract with

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electric utilities to supply renewable energy credits from
such facilities.
(4) The Agency shall assess fees to each applicant to
recover the Agency's costs incurred in receiving and
evaluating applications, conducting the procurement event,
developing contracts for sale, delivery and purchase of
renewable energy credits, and monitoring the
administration of such contracts, as provided for in this
subsection (c-5), including fees paid to a procurement
administrator retained by the Agency for one or more of
these purposes.
(5) The Agency shall select the applicants and the new
renewable energy facilities to contract with electric
utilities to supply renewable energy credits in accordance
with this subsection (c-5). In the first procurement
event, the Agency shall select applicants and new
renewable energy facilities to supply renewable energy
credits, at a price of $30 per renewable energy credit,
aggregating to no less than 400,000 renewable energy
credits per year for the applicable duration, assuming
sufficient qualifying applications to supply, in the
aggregate, at least that amount of renewable energy
credits per year; and not more than 580,000 renewable
energy credits per year for the applicable duration. In
the second procurement event, the Agency shall select
applicants and new renewable energy facilities to supply

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renewable energy credits, at a price of $30 per renewable
energy credit, aggregating to no more than 625,000
renewable energy credits per year less the amount of
renewable energy credits each year contracted for as a
result of the first procurement event, for the applicable
durations. The number of renewable energy credits to be
procured as specified in this paragraph (5) shall not be
reduced based on renewable energy credits procured in the
self-direct renewable energy credit compliance program
established pursuant to subparagraph (R) of paragraph (1)
of subsection (c) of Section 1-75.
(6) The obligation to purchase renewable energy
credits from the applicants and their new renewable energy
facilities selected by the Agency shall be allocated to
the electric utilities based on their respective
percentages of kilowatthours delivered to delivery
services customers to the aggregate kilowatthour
deliveries by the electric utilities to delivery services
customers for the year ended December 31, 2021. In order
to achieve these allocation percentages between or among
the electric utilities, the Agency shall require each
applicant that is selected in the procurement event to
enter into a contract with each electric utility for the
sale and purchase of renewable energy credits from each
new renewable energy facility to be constructed and
operated by the applicant, with the sale and purchase

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obligations under the contracts to aggregate to the total
number of renewable energy credits per year to be supplied
by the applicant from the new renewable energy facility.
(7) The Agency shall submit its proposed selection of
applicants, new renewable energy facilities to be
constructed, and renewable energy credit amounts for each
procurement event to the Commission for approval. The
Commission shall, within 2 business days after receipt of
the Agency's proposed selections, approve the proposed
selections if it determines that the applicants and the
new renewable energy facilities to be constructed meet the
selection criteria set forth in this subsection (c-5) and
that the Agency seeks approval for contracts of applicable
durations aggregating to no more than the maximum amount
of renewable energy credits per year authorized by this
subsection (c-5) for the procurement event, at a price of
$30 per renewable energy credit.
(8) The Agency, in conjunction with its procurement
administrator if one is retained, the electric utilities,
and potential applicants for contracts to produce and
supply renewable energy credits pursuant to this
subsection (c-5), shall develop a standard form contract
for the sale, delivery and purchase of renewable energy
credits pursuant to this subsection (c-5). Each contract
resulting from the first procurement event shall allow for
a commercial operation date for the new renewable energy

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facility of either June 1, 2023 or June 1, 2024, with such
dates subject to adjustment as provided in this paragraph.
Each contract resulting from the second procurement event
shall provide for a commercial operation date on June 1
next occurring up to 48 months after execution of the
contract. Each contract shall provide that the owner shall
receive payments for renewable energy credits for the
applicable durations beginning with the commercial
operation date of the new renewable energy facility. The
form contract shall provide for adjustments to the
commercial operation and payment start dates as needed due
to any delays in completing the procurement and
contracting processes, in finalizing interconnection
agreements and installing interconnection facilities, and
in obtaining other necessary governmental permits and
approvals. The form contract shall be, to the maximum
extent possible, consistent with standard electric
industry contracts for sale, delivery, and purchase of
renewable energy credits while taking into account the
specific requirements of this subsection (c-5). The form
contract shall provide for over-delivery and
under-delivery of renewable energy credits within
reasonable ranges during each 12-month period and penalty,
default, and enforcement provisions for failure of the
selling party to deliver renewable energy credits as
specified in the contract and to comply with the

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requirements of this subsection (c-5). The standard form
contract shall specify that all renewable energy credits
delivered to the electric utility pursuant to the contract
shall be retired. The Agency shall make the proposed
contracts available for a reasonable period for comment by
potential applicants, and shall publish the final form
contract at least 30 days before the date of the first
procurement event.
(9) Coal to Solar and Energy Storage Initiative
Charge.
(A) By no later than July 1, 2022, each electric
utility that served more than 300,000 retail customers
in this State as of January 1, 2019 shall file a tariff
with the Commission for the billing and collection of
a Coal to Solar and Energy Storage Initiative Charge
in accordance with subsection (i-5) of Section 16-108
of the Public Utilities Act, with such tariff to be
effective, following review and approval or
modification by the Commission, beginning January 1,
2023. The tariff shall provide for the calculation and
setting of the electric utility's Coal to Solar and
Energy Storage Initiative Charge to collect revenues
estimated to be sufficient, in the aggregate, (i) to
enable the electric utility to pay for the renewable
energy credits it has contracted to purchase in the
delivery year beginning June 1, 2023 and each delivery

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year thereafter from new renewable energy facilities
located at the sites of qualifying electric generating
facilities, and (ii) to fund the grant payments to be
made in each delivery year by the Department of
Commerce and Economic Opportunity, or any successor
department or agency, which shall be referred to in
this subsection (c-5) as the Department, pursuant to
paragraph (10) of this subsection (c-5). The electric
utility's tariff shall provide for the billing and
collection of the Coal to Solar and Energy Storage
Initiative Charge on each kilowatthour of electricity
delivered to its delivery services customers within
its service territory and shall provide for an annual
reconciliation of revenues collected with actual
costs, in accordance with subsection (i-5) of Section
16-108 of the Public Utilities Act.
(B) Each electric utility shall remit on a monthly
basis to the State Treasurer, for deposit in the Coal
to Solar and Energy Storage Initiative Fund provided
for in this subsection (c-5), the electric utility's
collections of the Coal to Solar and Energy Storage
Initiative Charge in the amount estimated to be needed
by the Department for grant payments pursuant to grant
contracts entered into by the Department pursuant to
paragraph (10) of this subsection (c-5).
(10) Coal to Solar and Energy Storage Initiative Fund.

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(A) The Coal to Solar and Energy Storage
Initiative Fund is established as a special fund in
the State treasury. The Coal to Solar and Energy
Storage Initiative Fund is authorized to receive, by
statutory deposit, that portion specified in item (B)
of paragraph (9) of this subsection (c-5) of moneys
collected by electric utilities through imposition of
the Coal to Solar and Energy Storage Initiative Charge
required by this subsection (c-5). The Coal to Solar
and Energy Storage Initiative Fund shall be
administered by the Department to provide grants to
support the installation and operation of energy
storage facilities at the sites of qualifying electric
generating facilities meeting the criteria specified
in this paragraph (10).
(B) The Coal to Solar and Energy Storage
Initiative Fund shall not be subject to sweeps,
administrative charges, or chargebacks, including, but
not limited to, those authorized under Section 8h of
the State Finance Act, that would in any way result in
the transfer of those funds from the Coal to Solar and
Energy Storage Initiative Fund to any other fund of
this State or in having any such funds utilized for any
purpose other than the express purposes set forth in
this paragraph (10).
(C) The Department shall utilize up to

HB4687 - 164 - LRB103 36052 LNS 66139 b
$280,500,000 in the Coal to Solar and Energy Storage
Initiative Fund for grants, assuming sufficient
qualifying applicants, to support installation of
energy storage facilities at the sites of up to 3
qualifying electric generating facilities located in
the Midcontinent Independent System Operator, Inc.,
region in Illinois and the sites of up to 2 qualifying
electric generating facilities located in the PJM
Interconnection, LLC region in Illinois that meet the
criteria set forth in this subparagraph (C). The
criteria for receipt of a grant pursuant to this
subparagraph (C) are as follows:
(1) the electric generating facility at the
site has, or had prior to retirement, an electric
generating capacity of at least 150 megawatts;
(2) the electric generating facility burns (or
burned prior to retirement) coal as its primary
source of fuel;
(3) if the electric generating facility is
retired, it was retired subsequent to January 1,
2016;
(4) the owner of the electric generating
facility has not been selected by the Agency
pursuant to this subsection (c-5) of this Section
to enter into a contract to sell renewable energy
credits to one or more electric utilities from a

HB4687 - 165 - LRB103 36052 LNS 66139 b
new renewable energy facility located or to be
located at or adjacent to the site at which the
electric generating facility is located;
(5) the electric generating facility located
at the site was at one time owned, in whole or in
part, by a public utility as defined in Section
3-105 of the Public Utilities Act;
(6) the electric generating facility at the
site is not owned by (i) an electric cooperative
as defined in Section 3-119 of the Public
Utilities Act, or (ii) an entity described in
subsection (b)(1) of Section 3-105 of the Public
Utilities Act, or an association or consortium of
or an entity owned by entities described in items
(i) or (ii);
(7) the proposed energy storage facility at
the site will have energy storage capacity of at
least 37 megawatts;
(8) the owner commits to place the energy
storage facility into commercial operation on
either June 1, 2023, June 1, 2024, or June 1, 2025,
with such date subject to adjustment as needed due
to any delays in completing the grant contracting
process, in finalizing interconnection agreements
and in installing interconnection facilities, and
in obtaining necessary governmental permits and

HB4687 - 166 - LRB103 36052 LNS 66139 b
approvals;
(9) the owner agrees that the new energy
storage facility will be constructed or installed
by a qualified entity or entities consistent with
the requirements of subsection (g) of Section
16-128A of the Public Utilities Act and any rules
adopted under that Section;
(10) the owner agrees that personnel operating
the energy storage facility will have the
requisite skills, knowledge, training, experience,
and competence, which may be demonstrated by
completion or current participation and ultimate
completion by employees of an accredited or
otherwise recognized apprenticeship program for
the employee's particular craft, trade, or skill,
including through training and education courses
and opportunities offered by the owner to
employees of the coal-fueled electric generating
facility or by previous employment experience
performing the employee's particular work skill or
function;
(11) the owner commits that not less than the
prevailing wage, as determined pursuant to the
Prevailing Wage Act, will be paid to the owner's
employees engaged in construction activities
associated with the new energy storage facility

HB4687 - 167 - LRB103 36052 LNS 66139 b
and to the employees of the owner's contractors
engaged in construction activities associated with
the new energy storage facility, and that, on or
before the commercial operation date of the new
energy storage facility, the owner shall file a
report with the Department certifying that the
requirements of this subparagraph (11) have been
met; and
(12) the owner commits that if selected to
receive a grant, it will negotiate a project labor
agreement for the construction of the new energy
storage facility that includes provisions
requiring the parties to the agreement to work
together to establish diversity threshold
requirements and to ensure best efforts to meet
diversity targets, improve diversity at the
applicable job site, create diverse apprenticeship
opportunities, and create opportunities to employ
former coal-fired power plant workers.
The Department shall accept applications for this
grant program until March 31, 2022 and shall announce
the award of grants no later than June 1, 2022. The
Department shall make the grant payments to a
recipient in equal annual amounts for 10 years
following the date the energy storage facility is
placed into commercial operation. The annual grant

HB4687 - 168 - LRB103 36052 LNS 66139 b
payments to a qualifying energy storage facility shall
be $110,000 per megawatt of energy storage capacity,
with total annual grant payments pursuant to this
subparagraph (C) for qualifying energy storage
facilities not to exceed $28,050,000 in any year.
(D) Grants of funding for energy storage
facilities pursuant to subparagraph (C) of this
paragraph (10), from the Coal to Solar and Energy
Storage Initiative Fund, shall be memorialized in
grant contracts between the Department and the
recipient. The grant contracts shall specify the date
or dates in each year on which the annual grant
payments shall be paid.
(E) All disbursements from the Coal to Solar and
Energy Storage Initiative Fund shall be made only upon
warrants of the Comptroller drawn upon the Treasurer
as custodian of the Fund upon vouchers signed by the
Director of the Department or by the person or persons
designated by the Director of the Department for that
purpose. The Comptroller is authorized to draw the
warrants upon vouchers so signed. The Treasurer shall
accept all written warrants so signed and shall be
released from liability for all payments made on those
warrants.
(11) Diversity, equity, and inclusion plans.
(A) Each applicant selected in a procurement event

HB4687 - 169 - LRB103 36052 LNS 66139 b
to contract to supply renewable energy credits in
accordance with this subsection (c-5) and each owner
selected by the Department to receive a grant or
grants to support the construction and operation of a
new energy storage facility or facilities in
accordance with this subsection (c-5) shall, within 60
days following the Commission's approval of the
applicant to contract to supply renewable energy
credits or within 60 days following execution of a
grant contract with the Department, as applicable,
submit to the Commission a diversity, equity, and
inclusion plan setting forth the applicant's or
owner's numeric goals for the diversity composition of
its supplier entities for the new renewable energy
facility or new energy storage facility, as
applicable, which shall be referred to for purposes of
this paragraph (11) as the project, and the
applicant's or owner's action plan and schedule for
achieving those goals.
(B) For purposes of this paragraph (11), diversity
composition shall be based on the percentage, which
shall be a minimum of 25%, of eligible expenditures
for contract awards for materials and services (which
shall be defined in the plan) to business enterprises
owned by minority persons, women, or persons with
disabilities as defined in Section 2 of the Business

HB4687 - 170 - LRB103 36052 LNS 66139 b
Enterprise for Minorities, Women, and Persons with
Disabilities Act, to LGBTQ business enterprises, to
veteran-owned business enterprises, and to business
enterprises located in environmental justice
communities. The diversity composition goals of the
plan may include eligible expenditures in areas for
vendor or supplier opportunities in addition to
development and construction of the project, and may
exclude from eligible expenditures materials and
services with limited market availability, limited
production and availability from suppliers in the
United States, such as solar panels and storage
batteries, and material and services that are subject
to critical energy infrastructure or cybersecurity
requirements or restrictions. The plan may provide
that the diversity composition goals may be met
through Tier 1 Direct or Tier 2 subcontracting
expenditures or a combination thereof for the project.
(C) The plan shall provide for, but not be limited
to: (i) internal initiatives, including multi-tier
initiatives, by the applicant or owner, or by its
engineering, procurement and construction contractor
if one is used for the project, which for purposes of
this paragraph (11) shall be referred to as the EPC
contractor, to enable diverse businesses to be
considered fairly for selection to provide materials

HB4687 - 171 - LRB103 36052 LNS 66139 b
and services; (ii) requirements for the applicant or
owner or its EPC contractor to proactively solicit and
utilize diverse businesses to provide materials and
services; and (iii) requirements for the applicant or
owner or its EPC contractor to hire a diverse
workforce for the project. The plan shall include a
description of the applicant's or owner's diversity
recruiting efforts both for the project and for other
areas of the applicant's or owner's business
operations. The plan shall provide for the imposition
of financial penalties on the applicant's or owner's
EPC contractor for failure to exercise best efforts to
comply with and execute the EPC contractor's diversity
obligations under the plan. The plan may provide for
the applicant or owner to set aside a portion of the
work on the project to serve as an incubation program
for qualified businesses, as specified in the plan,
owned by minority persons, women, persons with
disabilities, LGBTQ persons, and veterans, and
businesses located in environmental justice
communities, seeking to enter the renewable energy
industry.
(D) The applicant or owner may submit a revised or
updated plan to the Commission from time to time as
circumstances warrant. The applicant or owner shall
file annual reports with the Commission detailing the

HB4687 - 172 - LRB103 36052 LNS 66139 b
applicant's or owner's progress in implementing its
plan and achieving its goals and any modifications the
applicant or owner has made to its plan to better
achieve its diversity, equity and inclusion goals. The
applicant or owner shall file a final report on the
fifth June 1 following the commercial operation date
of the new renewable energy resource or new energy
storage facility, but the applicant or owner shall
thereafter continue to be subject to applicable
reporting requirements of Section 5-117 of the Public
Utilities Act.
(c-10) (Blank). Equity accountability system. It is the
purpose of this subsection (c-10) to create an equity
accountability system, which includes the minimum equity
standards for all renewable energy procurements, the equity
category of the Adjustable Block Program, and the equity
prioritization for noncompetitive procurements, that is
successful in advancing priority access to the clean energy
economy for businesses and workers from communities that have
been excluded from economic opportunities in the energy
sector, have been subject to disproportionate levels of
pollution, and have disproportionately experienced negative
public health outcomes. Further, it is the purpose of this
subsection to ensure that this equity accountability system is
successful in advancing equity across Illinois by providing
access to the clean energy economy for businesses and workers

HB4687 - 173 - LRB103 36052 LNS 66139 b
from communities that have been historically excluded from
economic opportunities in the energy sector, have been subject
to disproportionate levels of pollution, and have
disproportionately experienced negative public health
outcomes.
(1) Minimum equity standards. The Agency shall create
programs with the purpose of increasing access to and
development of equity eligible contractors, who are prime
contractors and subcontractors, across all of the programs
it manages. All applications for renewable energy credit
procurements shall comply with specific minimum equity
commitments. Starting in the delivery year immediately
following the next long-term renewable resources
procurement plan, at least 10% of the project workforce
for each entity participating in a procurement program
outlined in this subsection (c-10) must be done by equity
eligible persons or equity eligible contractors. The
Agency shall increase the minimum percentage each delivery
year thereafter by increments that ensure a statewide
average of 30% of the project workforce for each entity
participating in a procurement program is done by equity
eligible persons or equity eligible contractors by 2030.
The Agency shall propose a schedule of percentage
increases to the minimum equity standards in its draft
revised renewable energy resources procurement plan
submitted to the Commission for approval pursuant to

HB4687 - 174 - LRB103 36052 LNS 66139 b
paragraph (5) of subsection (b) of Section 16-111.5 of the
Public Utilities Act. In determining these annual
increases, the Agency shall have the discretion to
establish different minimum equity standards for different
types of procurements and different regions of the State
if the Agency finds that doing so will further the
purposes of this subsection (c-10). The proposed schedule
of annual increases shall be revisited and updated on an
annual basis. Revisions shall be developed with
stakeholder input, including from equity eligible persons,
equity eligible contractors, clean energy industry
representatives, and community-based organizations that
work with such persons and contractors.
(A) At the start of each delivery year, the Agency
shall require a compliance plan from each entity
participating in a procurement program of subsection
(c) of this Section that demonstrates how they will
achieve compliance with the minimum equity standard
percentage for work completed in that delivery year.
If an entity applies for its approved vendor or
designee status between delivery years, the Agency
shall require a compliance plan at the time of
application.
(B) Halfway through each delivery year, the Agency
shall require each entity participating in a
procurement program to confirm that it will achieve

HB4687 - 175 - LRB103 36052 LNS 66139 b
compliance in that delivery year, when applicable. The
Agency may offer corrective action plans to entities
that are not on track to achieve compliance.
(C) At the end of each delivery year, each entity
participating and completing work in that delivery
year in a procurement program of subsection (c) shall
submit a report to the Agency that demonstrates how it
achieved compliance with the minimum equity standards
percentage for that delivery year.
(D) The Agency shall prohibit participation in
procurement programs by an approved vendor or
designee, as applicable, or entities with which an
approved vendor or designee, as applicable, shares a
common parent company if an approved vendor or
designee, as applicable, failed to meet the minimum
equity standards for the prior delivery year. Waivers
approved for lack of equity eligible persons or equity
eligible contractors in a geographic area of a project
shall not count against the approved vendor or
designee. The Agency shall offer a corrective action
plan for any such entities to assist them in obtaining
compliance and shall allow continued access to
procurement programs upon an approved vendor or
designee demonstrating compliance.
(E) The Agency shall pursue efficiencies achieved
by combining with other approved vendor or designee

HB4687 - 176 - LRB103 36052 LNS 66139 b
reporting.
(2) Equity accountability system within the Adjustable
Block program. The equity category described in item (vi)
of subparagraph (K) of subsection (c) is only available to
applicants that are equity eligible contractors.
(3) Equity accountability system within competitive
procurements. Through its long-term renewable resources
procurement plan, the Agency shall develop requirements
for ensuring that competitive procurement processes,
including utility-scale solar, utility-scale wind, and
brownfield site photovoltaic projects, advance the equity
goals of this subsection (c-10). Subject to Commission
approval, the Agency shall develop bid application
requirements and a bid evaluation methodology for ensuring
that utilization of equity eligible contractors, whether
as bidders or as participants on project development, is
optimized, including requiring that winning or successful
applicants for utility-scale projects are or will partner
with equity eligible contractors and giving preference to
bids through which a higher portion of contract value
flows to equity eligible contractors. To the extent
practicable, entities participating in competitive
procurements shall also be required to meet all the equity
accountability requirements for approved vendors and their
designees under this subsection (c-10). In developing
these requirements, the Agency shall also consider whether

HB4687 - 177 - LRB103 36052 LNS 66139 b
equity goals can be further advanced through additional
measures.
(4) In the first revision to the long-term renewable
energy resources procurement plan and each revision
thereafter, the Agency shall include the following:
(A) The current status and number of equity
eligible contractors listed in the Energy Workforce
Equity Database designed in subsection (c-25),
including the number of equity eligible contractors
with current certifications as issued by the Agency.
(B) A mechanism for measuring, tracking, and
reporting project workforce at the approved vendor or
designee level, as applicable, which shall include a
measurement methodology and records to be made
available for audit by the Agency or the Program
Administrator.
(C) A program for approved vendors, designees,
eligible persons, and equity eligible contractors to
receive trainings, guidance, and other support from
the Agency or its designee regarding the equity
category outlined in item (vi) of subparagraph (K) of
paragraph (1) of subsection (c) and in meeting the
minimum equity standards of this subsection (c-10).
(D) A process for certifying equity eligible
contractors and equity eligible persons. The
certification process shall coordinate with the Energy

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Workforce Equity Database set forth in subsection
(c-25).
(E) An application for waiver of the minimum
equity standards of this subsection, which the Agency
shall have the discretion to grant in rare
circumstances. The Agency may grant such a waiver
where the applicant provides evidence of significant
efforts toward meeting the minimum equity commitment,
including: use of the Energy Workforce Equity
Database; efforts to hire or contract with entities
that hire eligible persons; and efforts to establish
contracting relationships with eligible contractors.
The Agency shall support applicants in understanding
the Energy Workforce Equity Database and other
resources for pursuing compliance of the minimum
equity standards. Waivers shall be project-specific,
unless the Agency deems it necessary to grant a waiver
across a portfolio of projects, and in effect for no
longer than one year. Any waiver extension or
subsequent waiver request from an applicant shall be
subject to the requirements of this Section and shall
specify efforts made to reach compliance. When
considering whether to grant a waiver, and to what
extent, the Agency shall consider the degree to which
similarly situated applicants have been able to meet
these minimum equity commitments. For repeated waiver

HB4687 - 179 - LRB103 36052 LNS 66139 b
requests for specific lack of eligible persons or
eligible contractors available, the Agency shall make
recommendations to target recruitment to add such
eligible persons or eligible contractors to the
database.
(5) The Agency shall collect information about work on
projects or portfolios of projects subject to these
minimum equity standards to ensure compliance with this
subsection (c-10). Reporting in furtherance of this
requirement may be combined with other annual reporting
requirements. Such reporting shall include proof of
certification of each equity eligible contractor or equity
eligible person during the applicable time period.
(6) The Agency shall keep confidential all information
and communication that provides private or personal
information.
(7) Modifications to the equity accountability system.
As part of the update of the long-term renewable resources
procurement plan to be initiated in 2023, or sooner if the
Agency deems necessary, the Agency shall determine the
extent to which the equity accountability system described
in this subsection (c-10) has advanced the goals of this
amendatory Act of the 102nd General Assembly, including
through the inclusion of equity eligible persons and
equity eligible contractors in renewable energy credit
projects. If the Agency finds that the equity

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accountability system has failed to meet those goals to
its fullest potential, the Agency may revise the following
criteria for future Agency procurements: (A) the
percentage of project workforce, or other appropriate
workforce measure, certified as equity eligible persons or
equity eligible contractors; (B) definitions for equity
investment eligible persons and equity investment eligible
community; and (C) such other modifications necessary to
advance the goals of this amendatory Act of the 102nd
General Assembly effectively. Such revised criteria may
also establish distinct equity accountability systems for
different types of procurements or different regions of
the State if the Agency finds that doing so will further
the purposes of such programs. Revisions shall be
developed with stakeholder input, including from equity
eligible persons, equity eligible contractors, and
community-based organizations that work with such persons
and contractors.
(c-15) (Blank). Racial discrimination elimination powers
and process.
(1) Purpose. It is the purpose of this subsection to
empower the Agency and other State actors to remedy racial
discrimination in Illinois' clean energy economy as
effectively and expediently as possible, including through
the use of race-conscious remedies, such as race-conscious
contracting and hiring goals, as consistent with State and

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federal law.
(2) Racial disparity and discrimination review
process.
(A) Within one year after awarding contracts using
the equity actions processes established in this
Section, the Agency shall publish a report evaluating
the effectiveness of the equity actions point criteria
of this Section in increasing participation of equity
eligible persons and equity eligible contractors. The
report shall disaggregate participating workers and
contractors by race and ethnicity. The report shall be
forwarded to the Governor, the General Assembly, and
the Illinois Commerce Commission and be made available
to the public.
(B) As soon as is practicable thereafter, the
Agency, in consultation with the Department of
Commerce and Economic Opportunity, Department of
Labor, and other agencies that may be relevant, shall
commission and publish a disparity and availability
study that measures the presence and impact of
discrimination on minority businesses and workers in
Illinois' clean energy economy. The Agency may hire
consultants and experts to conduct the disparity and
availability study, with the retention of those
consultants and experts exempt from the requirements
of Section 20-10 of the Illinois Procurement Code. The

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Illinois Power Agency shall forward a copy of its
findings and recommendations to the Governor, the
General Assembly, and the Illinois Commerce
Commission. If the disparity and availability study
establishes a strong basis in evidence that there is
discrimination in Illinois' clean energy economy, the
Agency, Department of Commerce and Economic
Opportunity, Department of Labor, Department of
Corrections, and other appropriate agencies shall take
appropriate remedial actions, including race-conscious
remedial actions as consistent with State and federal
law, to effectively remedy this discrimination. Such
remedies may include modification of the equity
accountability system as described in subsection
(c-10).
(c-20) (Blank). Program data collection.
(1) Purpose. Data collection, data analysis, and
reporting are critical to ensure that the benefits of the
clean energy economy provided to Illinois residents and
businesses are equitably distributed across the State. The
Agency shall collect data from program applicants in order
to track and improve equitable distribution of benefits
across Illinois communities for all procurements the
Agency conducts. The Agency shall use this data to, among
other things, measure any potential impact of racial
discrimination on the distribution of benefits and provide

HB4687 - 183 - LRB103 36052 LNS 66139 b
information necessary to correct any discrimination
through methods consistent with State and federal law.
(2) Agency collection of program data. The Agency
shall collect demographic and geographic data for each
entity awarded contracts under any Agency-administered
program.
(3) Required information to be collected. The Agency
shall collect the following information from applicants
and program participants where applicable:
(A) demographic information, including racial or
ethnic identity for real persons employed, contracted,
or subcontracted through the program and owners of
businesses or entities that apply to receive renewable
energy credits from the Agency;
(B) geographic location of the residency of real
persons employed, contracted, or subcontracted through
the program and geographic location of the
headquarters of the business or entity that applies to
receive renewable energy credits from the Agency; and
(C) any other information the Agency determines is
necessary for the purpose of achieving the purpose of
this subsection.
(4) Publication of collected information. The Agency
shall publish, at least annually, information on the
demographics of program participants on an aggregate
basis.

HB4687 - 184 - LRB103 36052 LNS 66139 b
(5) Nothing in this subsection shall be interpreted to
limit the authority of the Agency, or other agency or
department of the State, to require or collect demographic
information from applicants of other State programs.
(c-25) (Blank). Energy Workforce Equity Database.
(1) The Agency, in consultation with the Department of
Commerce and Economic Opportunity, shall create an Energy
Workforce Equity Database, and may contract with a third
party to do so ("database program administrator"). If the
Department decides to contract with a third party, that
third party shall be exempt from the requirements of
Section 20-10 of the Illinois Procurement Code. The Energy
Workforce Equity Database shall be a searchable database
of suppliers, vendors, and subcontractors for clean energy
industries that is:
(A) publicly accessible;
(B) easy for people to find and use;
(C) organized by company specialty or field;
(D) region-specific; and
(E) populated with information including, but not
limited to, contacts for suppliers, vendors, or
subcontractors who are minority and women-owned
business enterprise certified or who participate or
have participated in any of the programs described in
this Act.
(2) The Agency shall create an easily accessible,

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public facing online tool using the database information
that includes, at a minimum, the following:
(A) a map of environmental justice and equity
investment eligible communities;
(B) job postings and recruiting opportunities;
(C) a means by which recruiting clean energy
companies can find and interact with current or former
participants of clean energy workforce training
programs;
(D) information on workforce training service
providers and training opportunities available to
prospective workers;
(E) renewable energy company diversity reporting;
(F) a list of equity eligible contractors with
their contact information, types of work performed,
and locations worked in;
(G) reporting on outcomes of the programs
described in the workforce programs of the Energy
Transition Act, including information such as, but not
limited to, retention rate, graduation rate, and
placement rates of trainees; and
(H) information about the Jobs and Environmental
Justice Grant Program, the Clean Energy Jobs and
Justice Fund, and other sources of capital.
(3) The Agency shall ensure the database is regularly
updated to ensure information is current and shall

HB4687 - 186 - LRB103 36052 LNS 66139 b
coordinate with the Department of Commerce and Economic
Opportunity to ensure that it includes information on
individuals and entities that are or have participated in
the Clean Jobs Workforce Network Program, Clean Energy
Contractor Incubator Program, Returning Residents Clean
Jobs Training Program, or Clean Energy Primes Contractor
Accelerator Program.
(c-30) (Blank). Enforcement of minimum equity standards.
All entities seeking renewable energy credits must submit an
annual report to demonstrate compliance with each of the
equity commitments required under subsection (c-10). If the
Agency concludes the entity has not met or maintained its
minimum equity standards required under the applicable
subparagraphs under subsection (c-10), the Agency shall deny
the entity's ability to participate in procurement programs in
subsection (c), including by withholding approved vendor or
designee status. The Agency may require the entity to enter
into a corrective action plan. An entity that is not
recertified for failing to meet required equity actions in
subparagraph (c-10) may reapply once they have a corrective
action plan and achieve compliance with the minimum equity
standards.
(d) Clean coal portfolio standard.
(1) The procurement plans shall include electricity
generated using clean coal. Each utility shall enter into
one or more sourcing agreements with the initial clean

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

HB4687 - 188 - LRB103 36052 LNS 66139 b
the purchases under the sourcing agreement to comply with
this subsection (d) and shall file an accounting with the
load forecast that must be filed with the Agency by July 15
of each year, in accordance with subsection (d) of Section
16-111.5 of the Public Utilities Act.
A utility shall be deemed to have complied with the
clean coal portfolio standard specified in this subsection
(d) if the utility enters into a sourcing agreement as
required by this subsection (d).
(2) For purposes of this subsection (d), the required
execution of sourcing agreements with the initial clean
coal facility for a particular year shall be measured as a
percentage of the actual amount of electricity
(megawatt-hours) supplied by the electric utility to
eligible retail customers in the planning year ending
immediately prior to the agreement's execution. For
purposes of this subsection (d), the amount paid per
kilowatt hour kilowatthour means the total amount paid for
electric service expressed on a per-kilowatt-hour per
kilowatthour basis. For purposes of this subsection (d),
the total amount paid for electric service includes
without limitation amounts paid for supply, transmission,
distribution, surcharges and add-on taxes.
Notwithstanding the requirements of this subsection
(d), the total amount paid under sourcing agreements with
clean coal facilities pursuant to the procurement plan for

HB4687 - 189 - LRB103 36052 LNS 66139 b
any given year shall be reduced by an amount necessary to
limit the annual estimated average net increase due to the
costs of these resources included in the amounts paid by
eligible retail customers in connection with electric
service to:
(A) in 2010, no more than 0.5% of the amount paid
per kilowatt hour kilowatthour by those customers
during the year ending May 31, 2009;
(B) in 2011, the greater of an additional 0.5% of
the amount paid per kilowatt hour kilowatthour by
those customers during the year ending May 31, 2010 or
1% of the amount paid per kilowatt hour kilowatthour
by those customers during the year ending May 31,
2009;
(C) in 2012, the greater of an additional 0.5% of
the amount paid per kilowatt hour kilowatthour by
those customers during the year ending May 31, 2011 or
1.5% of the amount paid per kilowatt hour kilowatthour
by those customers during the year ending May 31,
2009;
(D) in 2013, the greater of an additional 0.5% of
the amount paid per kilowatt hour kilowatthour by
those customers during the year ending May 31, 2012 or
2% of the amount paid per kilowatt hour kilowatthour
by those customers during the year ending May 31,
2009; and

HB4687 - 190 - LRB103 36052 LNS 66139 b
(E) thereafter, the total amount paid under
sourcing agreements with clean coal facilities
pursuant to the procurement plan for any single year
shall be reduced by an amount necessary to limit the
estimated average net increase due to the cost of
these resources included in the amounts paid by
eligible retail customers in connection with electric
service to no more than the greater of (i) 2.015% of
the amount paid per kilowatt hour kilowatthour by
those customers during the year ending May 31, 2009 or
(ii) the incremental amount per kilowatt hour
kilowatthour paid for these resources in 2013. These
requirements may be altered only as provided by
statute.
No later than June 30, 2015, the Commission shall
review the limitation on the total amount paid under
sourcing agreements, if any, with clean coal facilities
pursuant to this subsection (d) and report to the General
Assembly its findings as to whether that limitation unduly
constrains the amount of electricity generated by
cost-effective clean coal facilities that is covered by
sourcing agreements.
(3) Initial clean coal facility. In order to promote
development of clean coal facilities in Illinois, each
electric utility subject to this Section shall execute a
sourcing agreement to source electricity from a proposed

HB4687 - 191 - LRB103 36052 LNS 66139 b
clean coal facility in Illinois (the "initial clean coal
facility") that will have a nameplate capacity of at least
500 MW when commercial operation commences, that has a
final Clean Air Act permit on June 1, 2009 (the effective
date of Public Act 95-1027), and that will meet the
definition of clean coal facility in Section 1-10 of this
Act when commercial operation commences. The sourcing
agreements with this initial clean coal facility shall be
subject to both approval of the initial clean coal
facility by the General Assembly and satisfaction of the
requirements of paragraph (4) of this subsection (d) and
shall be executed within 90 days after any such approval
by the General Assembly. The Agency and the Commission
shall have authority to inspect all books and records
associated with the initial clean coal facility during the
term of such a sourcing agreement. A utility's sourcing
agreement for electricity produced by the initial clean
coal facility shall include:
(A) a formula contractual price (the "contract
price") approved pursuant to paragraph (4) of this
subsection (d), which shall:
(i) be determined using a cost of service
methodology employing either a level or deferred
capital recovery component, based on a capital
structure consisting of 45% equity and 55% debt,
and a return on equity as may be approved by the

HB4687 - 192 - LRB103 36052 LNS 66139 b
Federal Energy Regulatory Commission, which in any
case may not exceed the lower of 11.5% or the rate
of return approved by the General Assembly
pursuant to paragraph (4) of this subsection (d);
and
(ii) provide that all miscellaneous net
revenue, including but not limited to net revenue
from the sale of emission allowances, if any,
substitute natural gas, if any, grants or other
support provided by the State of Illinois or the
United States Government, firm transmission
rights, if any, by-products produced by the
facility, energy or capacity derived from the
facility and not covered by a sourcing agreement
pursuant to paragraph (3) of this subsection (d)
or item (5) of subsection (d) of Section 16-115 of
the Public Utilities Act, whether generated from
the synthesis gas derived from coal, from SNG, or
from natural gas, shall be credited against the
revenue requirement for this initial clean coal
facility;
(B) power purchase provisions, which shall:
(i) provide that the utility party to such
sourcing agreement shall pay the contract price
for electricity delivered under such sourcing
agreement;

HB4687 - 193 - LRB103 36052 LNS 66139 b
(ii) require delivery of electricity to the
regional transmission organization market of the
utility that is party to such sourcing agreement;
(iii) require the utility party to such
sourcing agreement to buy from the initial clean
coal facility in each hour an amount of energy
equal to all clean coal energy made available from
the initial clean coal facility during such hour
times a fraction, the numerator of which is such
utility's retail market sales of electricity
(expressed in kilowatt hours kilowatthours sold)
in the State during the prior calendar month and
the denominator of which is the total retail
market sales of electricity (expressed in kilowatt
hours kilowatthours sold) in the State by
utilities during such prior month and the sales of
electricity (expressed in kilowatt hours
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount purchased by the utility
in any year will be limited by paragraph (2) of
this subsection (d); and
(iv) be considered pre-existing contracts in

HB4687 - 194 - LRB103 36052 LNS 66139 b
such utility's procurement plans for eligible
retail customers;
(C) contract for differences provisions, which
shall:
(i) require the utility party to such sourcing
agreement to contract with the initial clean coal
facility in each hour with respect to an amount of
energy equal to all clean coal energy made
available from the initial clean coal facility
during such hour times a fraction, the numerator
of which is such utility's retail market sales of
electricity (expressed in kilowatt hours
kilowatthours sold) in the utility's service
territory in the State during the prior calendar
month and the denominator of which is the total
retail market sales of electricity (expressed in
kilowatt hours kilowatthours sold) in the State by
utilities during such prior month and the sales of
electricity (expressed in kilowatt hours
kilowatthours sold) in the State by alternative
retail electric suppliers during such prior month
that are subject to the requirements of this
subsection (d) and paragraph (5) of subsection (d)
of Section 16-115 of the Public Utilities Act,
provided that the amount paid by the utility in
any year will be limited by paragraph (2) of this

HB4687 - 195 - LRB103 36052 LNS 66139 b
subsection (d);
(ii) provide that the utility's payment
obligation in respect of the quantity of
electricity determined pursuant to the preceding
clause (i) shall be limited to an amount equal to
(1) the difference between the contract price
determined pursuant to subparagraph (A) of
paragraph (3) of this subsection (d) and the
day-ahead price for electricity delivered to the
regional transmission organization market of the
utility that is party to such sourcing agreement
(or any successor delivery point at which such
utility's supply obligations are financially
settled on an hourly basis) (the "reference
price") on the day preceding the day on which the
electricity is delivered to the initial clean coal
facility busbar, multiplied by (2) the quantity of
electricity determined pursuant to the preceding
clause (i); and
(iii) not require the utility to take physical
delivery of the electricity produced by the
facility;
(D) general provisions, which shall:
(i) specify a term of no more than 30 years,
commencing on the commercial operation date of the
facility;

HB4687 - 196 - LRB103 36052 LNS 66139 b
(ii) provide that utilities shall maintain
adequate records documenting purchases under the
sourcing agreements entered into to comply with
this subsection (d) and shall file an accounting
with the load forecast that must be filed with the
Agency by July 15 of each year, in accordance with
subsection (d) of Section 16-111.5 of the Public
Utilities Act;
(iii) provide that all costs associated with
the initial clean coal facility will be
periodically reported to the Federal Energy
Regulatory Commission and to purchasers in
accordance with applicable laws governing
cost-based wholesale power contracts;
(iv) permit the Illinois Power Agency to
assume ownership of the initial clean coal
facility, without monetary consideration and
otherwise on reasonable terms acceptable to the
Agency, if the Agency so requests no less than 3
years prior to the end of the stated contract
term;
(v) require the owner of the initial clean
coal facility to provide documentation to the
Commission each year, starting in the facility's
first year of commercial operation, accurately
reporting the quantity of carbon emissions from

HB4687 - 197 - LRB103 36052 LNS 66139 b
the facility that have been captured and
sequestered and report any quantities of carbon
released from the site or sites at which carbon
emissions were sequestered in prior years, based
on continuous monitoring of such sites. If, in any
year after the first year of commercial operation,
the owner of the facility fails to demonstrate
that the initial clean coal facility captured and
sequestered at least 50% of the total carbon
emissions that the facility would otherwise emit
or that sequestration of emissions from prior
years has failed, resulting in the release of
carbon dioxide into the atmosphere, the owner of
the facility must offset excess emissions. Any
such carbon offsets must be permanent, additional,
verifiable, real, located within the State of
Illinois, and legally and practicably enforceable.
The cost of such offsets for the facility that are
not recoverable shall not exceed $15 million in
any given year. No costs of any such purchases of
carbon offsets may be recovered from a utility or
its customers. All carbon offsets purchased for
this purpose and any carbon emission credits
associated with sequestration of carbon from the
facility must be permanently retired. The initial
clean coal facility shall not forfeit its

HB4687 - 198 - LRB103 36052 LNS 66139 b
designation as a clean coal facility if the
facility fails to fully comply with the applicable
carbon sequestration requirements in any given
year, provided the requisite offsets are
purchased. However, the Attorney General, on
behalf of the People of the State of Illinois, may
specifically enforce the facility's sequestration
requirement and the other terms of this contract
provision. Compliance with the sequestration
requirements and offset purchase requirements
specified in paragraph (3) of this subsection (d)
shall be reviewed annually by an independent
expert retained by the owner of the initial clean
coal facility, with the advance written approval
of the Attorney General. The Commission may, in
the course of the review specified in item (vii),
reduce the allowable return on equity for the
facility if the facility willfully fails to comply
with the carbon capture and sequestration
requirements set forth in this item (v);
(vi) include limits on, and accordingly
provide for modification of, the amount the
utility is required to source under the sourcing
agreement consistent with paragraph (2) of this
subsection (d);
(vii) require Commission review: (1) to

HB4687 - 199 - LRB103 36052 LNS 66139 b
determine the justness, reasonableness, and
prudence of the inputs to the formula referenced
in subparagraphs (A)(i) through (A)(iii) of
paragraph (3) of this subsection (d), prior to an
adjustment in those inputs including, without
limitation, the capital structure and return on
equity, fuel costs, and other operations and
maintenance costs and (2) to approve the costs to
be passed through to customers under the sourcing
agreement by which the utility satisfies its
statutory obligations. Commission review shall
occur no less than every 3 years, regardless of
whether any adjustments have been proposed, and
shall be completed within 9 months;
(viii) limit the utility's obligation to such
amount as the utility is allowed to recover
through tariffs filed with the Commission,
provided that neither the clean coal facility nor
the utility waives any right to assert federal
pre-emption or any other argument in response to a
purported disallowance of recovery costs;
(ix) limit the utility's or alternative retail
electric supplier's obligation to incur any
liability until such time as the facility is in
commercial operation and generating power and
energy and such power and energy is being

HB4687 - 200 - LRB103 36052 LNS 66139 b
delivered to the facility busbar;
(x) provide that the owner or owners of the
initial clean coal facility, which is the
counterparty to such sourcing agreement, shall
have the right from time to time to elect whether
the obligations of the utility party thereto shall
be governed by the power purchase provisions or
the contract for differences provisions;
(xi) append documentation showing that the
formula rate and contract, insofar as they relate
to the power purchase provisions, have been
approved by the Federal Energy Regulatory
Commission pursuant to Section 205 of the Federal
Power Act;
(xii) provide that any changes to the terms of
the contract, insofar as such changes relate to
the power purchase provisions, are subject to
review under the public interest standard applied
by the Federal Energy Regulatory Commission
pursuant to Sections 205 and 206 of the Federal
Power Act; and
(xiii) conform with customary lender
requirements in power purchase agreements used as
the basis for financing non-utility generators.
(4) Effective date of sourcing agreements with the
initial clean coal facility. Any proposed sourcing

HB4687 - 201 - LRB103 36052 LNS 66139 b
agreement with the initial clean coal facility shall not
become effective unless the following reports are prepared
and submitted and authorizations and approvals obtained:
(i) Facility cost report. The owner of the initial
clean coal facility shall submit to the Commission,
the Agency, and the General Assembly a front-end
engineering and design study, a facility cost report,
method of financing (including but not limited to
structure and associated costs), and an operating and
maintenance cost quote for the facility (collectively
"facility cost report"), which shall be prepared in
accordance with the requirements of this paragraph (4)
of subsection (d) of this Section, and shall provide
the Commission and the Agency access to the work
papers, relied upon documents, and any other backup
documentation related to the facility cost report.
(ii) Commission report. Within 6 months following
receipt of the facility cost report, the Commission,
in consultation with the Agency, shall submit a report
to the General Assembly setting forth its analysis of
the facility cost report. Such report shall include,
but not be limited to, a comparison of the costs
associated with electricity generated by the initial
clean coal facility to the costs associated with
electricity generated by other types of generation
facilities, an analysis of the rate impacts on

HB4687 - 202 - LRB103 36052 LNS 66139 b
residential and small business customers over the life
of the sourcing agreements, and an analysis of the
likelihood that the initial clean coal facility will
commence commercial operation by and be delivering
power to the facility's busbar by 2016. To assist in
the preparation of its report, the Commission, in
consultation with the Agency, may hire one or more
experts or consultants, the costs of which shall be
paid for by the owner of the initial clean coal
facility. The Commission and Agency may begin the
process of selecting such experts or consultants prior
to receipt of the facility cost report.
(iii) General Assembly approval. The proposed
sourcing agreements shall not take effect unless,
based on the facility cost report and the Commission's
report, the General Assembly enacts authorizing
legislation approving (A) the projected price, stated
in cents per kilowatt hour kilowatthour, to be charged
for electricity generated by the initial clean coal
facility, (B) the projected impact on residential and
small business customers' bills over the life of the
sourcing agreements, and (C) the maximum allowable
return on equity for the project; and
(iv) Commission review. If the General Assembly
enacts authorizing legislation pursuant to
subparagraph (iii) approving a sourcing agreement, the

HB4687 - 203 - LRB103 36052 LNS 66139 b
Commission shall, within 90 days of such enactment,
complete a review of such sourcing agreement. During
such time period, the Commission shall implement any
directive of the General Assembly, resolve any
disputes between the parties to the sourcing agreement
concerning the terms of such agreement, approve the
form of such agreement, and issue an order finding
that the sourcing agreement is prudent and reasonable.
The facility cost report shall be prepared as follows:
(A) The facility cost report shall be prepared by
duly licensed engineering and construction firms
detailing the estimated capital costs payable to one
or more contractors or suppliers for the engineering,
procurement and construction of the components
comprising the initial clean coal facility and the
estimated costs of operation and maintenance of the
facility. The facility cost report shall include:
(i) an estimate of the capital cost of the
core plant based on one or more front end
engineering and design studies for the
gasification island and related facilities. The
core plant shall include all civil, structural,
mechanical, electrical, control, and safety
systems.
(ii) an estimate of the capital cost of the
balance of the plant, including any capital costs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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overcome. In such event, the zero emission
facility shall be excused from performance for the
duration of the event, including, but not limited
to, delivery of zero emission credits, and no
payment shall be due to the zero emission facility
during the duration of the event.
(ii) A zero emission facility shall be
permitted to terminate the contract if legislation
is enacted into law by the General Assembly that
imposes or authorizes a new tax, special
assessment, or fee on the generation of
electricity, the ownership or leasehold of a
generating unit, or the privilege or occupation of
such generation, ownership, or leasehold of
generation units by a zero emission facility.
However, the provisions of this item (ii) do not
apply to any generally applicable tax, special
assessment or fee, or requirements imposed by
federal law.
(iii) A zero emission facility shall be
permitted to terminate the contract in the event
that the resource requires capital expenditures in
excess of $40,000,000 that were neither known nor
reasonably foreseeable at the time it executed the
contract and that a prudent owner or operator of
such resource would not undertake.

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

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shall be reduced for all retail customers based on the
amount necessary to limit the net increase that delivery
year to the costs of those credits included in the amounts
paid by eligible retail customers in connection with
electric service to no more than 1.65% of the amount paid
per kilowatt hour kilowatthour by eligible retail
customers during the year ending May 31, 2009. The result
of this computation shall apply to and reduce the
procurement for all retail customers, and all those
customers shall pay the same single, uniform cents per
kilowatt-hour kilowatthour charge under subsection (k) of
Section 16-108 of the Public Utilities Act. To arrive at a
maximum dollar amount of zero emission credits to be paid
for the particular delivery year, the resulting
per-kilowatt-hour per kilowatthour amount shall be applied
to the actual amount of kilowatt hours kilowatthours of
electricity delivered by the electric utility in the
delivery year immediately prior to the procurement, to all
retail customers in its service territory. Unpaid
contractual volume for any delivery year shall be paid in
any subsequent delivery year in which such payments can be
made without exceeding the amount specified in this
paragraph (2). The calculations required by this paragraph
(2) shall be made only once for each procurement plan
year. Once the determination as to the amount of zero
emission credits to be paid is made based on the

HB4687 - 224 - LRB103 36052 LNS 66139 b
calculations set forth in this paragraph (2), no
subsequent rate impact determinations shall be made and no
adjustments to those contract amounts shall be allowed.
All costs incurred under those contracts and in
implementing this subsection (d-5) shall be recovered by
the electric utility as provided in this Section.
No later than June 30, 2019, the Commission shall
review the limitation on the amount of zero emission
credits procured under this subsection (d-5) and report to
the General Assembly its findings as to whether that
limitation unduly constrains the procurement of
cost-effective zero emission credits.
(3) Six years after the execution of a contract under
this subsection (d-5), the Agency shall determine whether
the actual zero emission credit payments received by the
supplier over the 6-year period exceed the Average ZEC
Payment. In addition, at the end of the term of a contract
executed under this subsection (d-5), or at the time, if
any, a zero emission facility's contract is terminated
under subparagraph (E) of paragraph (1) of this subsection
(d-5), then the Agency shall determine whether the actual
zero emission credit payments received by the supplier
over the term of the contract exceed the Average ZEC
Payment, after taking into account any amounts previously
credited back to the utility under this paragraph (3). If
the Agency determines that the actual zero emission credit

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payments received by the supplier over the relevant period
exceed the Average ZEC Payment, then the supplier shall
credit the difference back to the utility. The amount of
the credit shall be remitted to the applicable electric
utility no later than 120 days after the Agency's
determination, which the utility shall reflect as a credit
on its retail customer bills as soon as practicable;
however, the credit remitted to the utility shall not
exceed the total amount of payments received by the
facility under its contract.
For purposes of this Section, the Average ZEC Payment
shall be calculated by multiplying the quantity of zero
emission credits delivered under the contract times the
average contract price. The average contract price shall
be determined by subtracting the amount calculated under
subparagraph (B) of this paragraph (3) from the amount
calculated under subparagraph (A) of this paragraph (3),
as follows:
(A) The average of the Social Cost of Carbon, as
defined in subparagraph (B) of paragraph (1) of this
subsection (d-5), during the term of the contract.
(B) The average of the market price indices, as
defined in subparagraph (B) of paragraph (1) of this
subsection (d-5), during the term of the contract,
minus the baseline market price index, as defined in
subparagraph (B) of paragraph (1) of this subsection

HB4687 - 226 - LRB103 36052 LNS 66139 b
(d-5).
If the subtraction yields a negative number, then the
Average ZEC Payment shall be zero.
(4) Cost-effective zero emission credits procured from
zero emission facilities shall satisfy the applicable
definitions set forth in Section 1-10 of this Act.
(5) The electric utility shall retire all zero
emission credits used to comply with the requirements of
this subsection (d-5).
(6) Electric utilities shall be entitled to recover
all of the costs associated with the procurement of zero
emission credits through an automatic adjustment clause
tariff in accordance with subsection (k) and (m) of
Section 16-108 of the Public Utilities Act, and the
contracts executed under this subsection (d-5) shall
provide that the utilities' payment obligations under such
contracts shall be reduced if an adjustment is required
under subsection (m) of Section 16-108 of the Public
Utilities Act.
(7) This subsection (d-5) shall become inoperative on
January 1, 2028.
(d-10) (Blank). Nuclear Plant Assistance; carbon
mitigation credits.
(1) The General Assembly finds:
(A) The health, welfare, and prosperity of all
Illinois citizens require that the State of Illinois act

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to avoid and not increase carbon emissions from electric
generation sources while continuing to ensure affordable,
stable, and reliable electricity to all citizens.
(B) Absent immediate action by the State to preserve
existing carbon-free energy resources, those resources may
retire, and the electric generation needs of Illinois'
retail customers may be met instead by facilities that
emit significant amounts of carbon pollution and other
harmful air pollutants at a high social and economic cost
until Illinois is able to develop other forms of clean
energy.
(C) The General Assembly finds that nuclear power
generation is necessary for the State's transition to 100%
clean energy, and ensuring continued operation of nuclear
plants advances environmental and public health interests
through providing carbon-free electricity while reducing
the air pollution profile of the Illinois energy
generation fleet.
(D) The clean energy attributes of nuclear generation
facilities support the State in its efforts to achieve
100% clean energy.
(E) The State currently invests in various forms of
clean energy, including, but not limited to, renewable
energy, energy efficiency, and low-emission vehicles,
among others.
(F) The Environmental Protection Agency commissioned

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an independent audit which provided a detailed assessment
of the financial condition of the Illinois nuclear fleet
to evaluate its financial viability and whether the
environmental benefits of such resources were at risk. The
report identified the risk of losing the environmental
benefits of several specific nuclear units. The report
also identified that the LaSalle County Generating Station
will continue to operate through 2026 and therefore is not
eligible to participate in the carbon mitigation credit
program.
(G) Nuclear plants provide carbon-free energy, which
helps to avoid many health-related negative impacts for
Illinois residents.
(H) The procurement of carbon mitigation credits
representing the environmental benefits of carbon-free
generation will further the State's efforts at achieving
100% clean energy and decarbonizing the electricity sector
in a safe, reliable, and affordable manner. Further, the
procurement of carbon emission credits will enhance the
health and welfare of Illinois residents through decreased
reliance on more highly polluting generation.
(I) The General Assembly therefore finds it necessary
to establish carbon mitigation credits to ensure decreased
reliance on more carbon-intensive energy resources, for
transitioning to a fully decarbonized electricity sector,
and to help ensure health and welfare of the State's

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residents.
(2) As used in this subsection:
"Baseline costs" means costs used to establish a customer
protection cap that have been evaluated through an independent
audit of a carbon-free energy resource conducted by the
Environmental Protection Agency that evaluated projected
annual costs for operation and maintenance expenses; fully
allocated overhead costs, which shall be allocated using the
methodology developed by the Institute for Nuclear Power
Operations; fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working capital; the cost
of operational and market risks that could be avoided by
ceasing operation; and any other costs necessary for continued
operations, provided that "necessary" means, for purposes of
this definition, that the costs could reasonably be avoided
only by ceasing operations of the carbon-free energy resource.
"Carbon mitigation credit" means a tradable credit that
represents the carbon emission reduction attributes of one
megawatt-hour of energy produced from a carbon-free energy
resource.
"Carbon-free energy resource" means a generation facility
that: (1) is fueled by nuclear power; and (2) is
interconnected to PJM Interconnection, LLC.
(3) Procurement.
(A) Beginning with the delivery year commencing on
June 1, 2022, the Agency shall, for electric utilities

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serving at least 3,000,000 retail customers in the State,
seek to procure contracts for no more than approximately
54,500,000 cost-effective carbon mitigation credits from
carbon-free energy resources because such credits are
necessary to support current levels of carbon-free energy
generation and ensure the State meets its carbon dioxide
emissions reduction goals. The Agency shall not make a
partial award of a contract for carbon mitigation credits
covering a fractional amount of a carbon-free energy
resource's projected output.
(B) Each carbon-free energy resource that intends to
participate in a procurement shall be required to submit
to the Agency the following information for the resource
on or before the date established by the Agency:
(i) the in-service date and remaining useful life
of the carbon-free energy resource;
(ii) the amount of power generated annually for
each of the past 10 years, which shall be used to
determine the capability of each facility;
(iii) a commitment to be reflected in any contract
entered into pursuant to this subsection (d-10) to
continue operating the carbon-free energy resource at
a capacity factor of at least 88% annually on average
for the duration of the contract or contracts executed
under the procurement held under this subsection
(d-10), except in an instance described in

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subparagraph (E) of paragraph (1) of subsection (d-5)
of this Section or made impracticable as a result of
compliance with law or regulation;
(iv) financial need and the risk of loss of the
environmental benefits of such resource, which shall
include the following information:
(I) the carbon-free energy resource's cost
projections, expressed on a per megawatt-hour
basis, over the next 5 delivery years, which shall
include the following: operation and maintenance
expenses; fully allocated overhead costs, which
shall be allocated using the methodology developed
by the Institute for Nuclear Power Operations;
fuel expenditures; nonfuel capital expenditures;
spent fuel expenditures; a return on working
capital; the cost of operational and market risks
that could be avoided by ceasing operation; and
any other costs necessary for continued
operations, provided that "necessary" means, for
purposes of this subitem (I), that the costs could
reasonably be avoided only by ceasing operations
of the carbon-free energy resource; and
(II) the carbon-free energy resource's revenue
projections, including energy, capacity, ancillary
services, any other direct State support, known or
anticipated federal attribute credits, known or

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anticipated tax credits, and any other direct
federal support.
The information described in this subparagraph (B) may
be submitted on a confidential basis and shall be treated
and maintained by the Agency, the procurement
administrator, and the Commission as confidential and
proprietary and exempt from disclosure under subparagraphs
(a) and (g) of paragraph (1) of Section 7 of the Freedom of
Information Act. The Office of the Attorney General shall
have access to, and maintain the confidentiality of, such
information pursuant to Section 6.5 of the Attorney
General Act.
(C) The Agency shall solicit bids for the contracts
described in this subsection (d-10) from carbon-free
energy resources that have satisfied the requirements of
subparagraph (B) of this paragraph (3). The contracts
procured pursuant to a procurement event shall reflect,
and be subject to, the following terms, requirements, and
limitations:
(i) Contracts are for delivery of carbon
mitigation credits, and are not energy or capacity
sales contracts requiring physical delivery. Pursuant
to item (iii), contract payments shall fully deduct
the value of any monetized federal production tax
credits, credits issued pursuant to a federal clean
energy standard, and other federal credits if

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applicable.
(ii) Contracts for carbon mitigation credits shall
commence with the delivery year beginning on June 1,
2022 and shall be for a term of 5 delivery years
concluding on May 31, 2027.
(iii) The price per carbon mitigation credit to be
paid under a contract for a given delivery year shall
be equal to an accepted bid price less the sum of:
(I) one of the following energy price indices,
selected by the bidder at the time of the bid for
the term of the contract:
(aa) the weighted-average hourly day-ahead
price for the applicable delivery year at the
busbar of all resources procured pursuant to
this subsection (d-10), weighted by actual
production from the resources; or
(bb) the projected energy price for the
PJM Interconnection, LLC Northern Illinois Hub
for the applicable delivery year determined
according to subitem (aa) of item (iii) of
subparagraph (B) of paragraph (1) of
subsection (d-5).
(II) the Base Residual Auction Capacity Price
for the ComEd zone as determined by PJM
Interconnection, LLC, divided by 24 hours per day,
for the applicable delivery year for the first 3

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delivery years, and then any subsequent delivery
years unless the PJM Interconnection, LLC applies
the Minimum Offer Price Rule to participating
carbon-free energy resources because they supply
carbon mitigation credits pursuant to this Section
at which time, upon notice by the carbon-free
energy resource to the Commission and subject to
the Commission's confirmation, the value under
this subitem shall be zero, as further described
in the carbon mitigation credit procurement plan;
and
(III) any value of monetized federal tax
credits, direct payments, or similar subsidy
provided to the carbon-free energy resource from
any unit of government that is not already
reflected in energy prices.
If the price-per-megawatt-hour calculation
performed under item (iii) of this subparagraph (C)
for a given delivery year results in a net positive
value, then the electric utility counterparty to the
contract shall multiply such net value by the
applicable contract quantity and remit the amount to
the supplier.
To protect retail customers from retail rate
impacts that may arise upon the initiation of carbon
policy changes, if the price-per-megawatt-hour

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calculation performed under item (iii) of this
subparagraph (C) for a given delivery year results in
a net negative value, then the supplier counterparty
to the contract shall multiply such net value by the
applicable contract quantity and remit such amount to
the electric utility counterparty. The electric
utility shall reflect such amounts remitted by
suppliers as a credit on its retail customer bills as
soon as practicable.
(iv) To ensure that retail customers in Northern
Illinois do not pay more for carbon mitigation credits
than the value such credits provide, and
notwithstanding the provisions of this subsection
(d-10), the Agency shall not accept bids for contracts
that exceed a customer protection cap equal to the
baseline costs of carbon-free energy resources.
The baseline costs for the applicable year shall
be the following:
(I) For the delivery year beginning June 1,
2022, the baseline costs shall be an amount equal
to $30.30 per megawatt-hour.
(II) For the delivery year beginning June 1,
2023, the baseline costs shall be an amount equal
to $32.50 per megawatt-hour.
(III) For the delivery year beginning June 1,
2024, the baseline costs shall be an amount equal

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to $33.43 per megawatt-hour.
(IV) For the delivery year beginning June 1,
2025, the baseline costs shall be an amount equal
to $33.50 per megawatt-hour.
(V) For the delivery year beginning June 1,
2026, the baseline costs shall be an amount equal
to $34.50 per megawatt-hour.
An Environmental Protection Agency consultant
forecast, included in a report issued April 14, 2021,
projects that a carbon-free energy resource has the
opportunity to earn on average approximately $30.28
per megawatt-hour, for the sale of energy and capacity
during the time period between 2022 and 2027.
Therefore, the sale of carbon mitigation credits
provides the opportunity to receive an additional
amount per megawatt-hour in addition to the projected
prices for energy and capacity.
Although actual energy and capacity prices may
vary from year-to-year, the General Assembly finds
that this customer protection cap will help ensure
that the cost of carbon mitigation credits will be
less than its value, based upon the social cost of
carbon identified in the Technical Support Document
issued in February 2021 by the U.S. Interagency
Working Group on Social Cost of Greenhouse Gases and
the PJM Interconnection, LLC carbon dioxide marginal

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emission rate for 2020, and that a carbon-free energy
resource receiving payment for carbon mitigation
credits receives no more than necessary to keep those
units in operation.
(D) No later than 7 days after the effective date of
this amendatory Act of the 102nd General Assembly, the
Agency shall publish its proposed carbon mitigation credit
procurement plan. The Plan shall provide that winning bids
shall be selected by taking into consideration which
resources best match public interest criteria that
include, but are not limited to, minimizing carbon dioxide
emissions that result from electricity consumed in
Illinois and minimizing sulfur dioxide, nitrogen oxide,
and particulate matter emissions that adversely affect the
citizens of this State. The selection of winning bids
shall also take into account the incremental environmental
benefits resulting from the procurement or procurements,
such as any existing environmental benefits that are
preserved by a procurement held under this subsection
(d-10) and would cease to exist if the procurement were
not held, including the preservation of carbon-free energy
resources. For those bidders having the same public
interest criteria score, the relative ranking of such
bidders shall be determined by price. The Plan shall
describe in detail how each public interest factor shall
be considered and weighted in the bid selection process to

HB4687 - 238 - LRB103 36052 LNS 66139 b
ensure that the public interest criteria are applied to
the procurement. The Plan shall, to the extent practical
and permissible by federal law, ensure that successful
bidders make commercially reasonable efforts to apply for
federal tax credits, direct payments, or similar subsidy
programs that support carbon-free generation and for which
the successful bidder is eligible. Upon publishing of the
carbon mitigation credit procurement plan, copies of the
plan shall be posted and made publicly available on the
Agency's website. All interested parties shall have 7 days
following the date of posting to provide comment to the
Agency on the plan. All comments shall be posted to the
Agency's website. Following the end of the comment period,
but no more than 19 days later than the effective date of
this amendatory Act of the 102nd General Assembly, the
Agency shall revise the plan as necessary based on the
comments received and file its carbon mitigation credit
procurement plan with the Commission.
(E) If the Commission determines that the plan is
likely to result in the procurement of cost-effective
carbon mitigation credits, then the Commission shall,
after notice and hearing and opportunity for comment, but
no later than 42 days after the Agency filed the plan,
approve the plan or approve it with modification. For
purposes of this subsection (d-10), "cost-effective" means
carbon mitigation credits that are procured from

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carbon-free energy resources at prices that are within the
limits specified in this paragraph (3). As part of the
Commission's review and acceptance or rejection of the
procurement results, the Commission shall, in its public
notice of successful bidders:
(i) identify how the selected carbon-free energy
resources satisfy the public interest criteria
described in this paragraph (3) of minimizing carbon
dioxide emissions that result from electricity
consumed in Illinois and minimizing sulfur dioxide,
nitrogen oxide, and particulate matter emissions that
adversely affect the citizens of this State;
(ii) specifically address how the selection of
carbon-free energy resources takes into account the
incremental environmental benefits resulting from the
procurement, including any existing environmental
benefits that are preserved by the procurements held
under this amendatory Act of the 102nd General
Assembly and would have ceased to exist if the
procurements had not been held, such as the
preservation of carbon-free energy resources;
(iii) quantify the environmental benefit of
preserving the carbon-free energy resources procured
pursuant to this subsection (d-10), including the
following:
(I) an assessment value of avoided greenhouse

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gas emissions measured as the product of the
carbon-free energy resources' output over the
contract term, using generally accepted
methodologies for the valuation of avoided
emissions; and
(II) an assessment of costs of replacement
with other carbon-free energy resources and
renewable energy resources, including wind and
photovoltaic generation, based upon an assessment
of the prices paid for renewable energy credits
through programs and procurements conducted
pursuant to subsection (c) of Section 1-75 of this
Act, and the additional storage necessary to
produce the same or similar capability of matching
customer usage patterns.
(F) The procurements described in this paragraph (3),
including, but not limited to, the execution of all
contracts procured, shall be completed no later than
December 3, 2021. The procurement and plan approval
processes required by this paragraph (3) shall be
conducted in conjunction with the procurement and plan
approval processes required by Section 16-111.5 of the
Public Utilities Act, to the extent practicable. However,
the Agency and Commission may, as appropriate, modify the
various dates and timelines under this subparagraph and
subparagraphs (D) and (E) of this paragraph (3) to meet

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the December 3, 2021 contract execution deadline.
Following the completion of such procurements, and
consistent with this paragraph (3), the Agency shall
calculate the payments to be made under each contract in a
timely fashion.
(F-1) Costs incurred by the electric utility pursuant
to a contract authorized by this subsection (d-10) shall
be deemed prudently incurred and reasonable in amount, and
the electric utility shall be entitled to full cost
recovery pursuant to a tariff or tariffs filed with the
Commission.
(G) The counterparty electric utility shall retire all
carbon mitigation credits used to comply with the
requirements of this subsection (d-10).
(H) If a carbon-free energy resource is sold to
another owner, the rights, obligations, and commitments
under this subsection (d-10) shall continue to the
subsequent owner.
(I) This subsection (d-10) shall become inoperative on
January 1, 2028.
(e) The draft procurement plans are subject to public
comment, as required by Section 16-111.5 of the Public
Utilities Act.
(f) The Agency shall submit the final procurement plan to
the Commission. The Agency shall revise a procurement plan if
the Commission determines that it does not meet the standards

HB4687 - 242 - LRB103 36052 LNS 66139 b
set forth in Section 16-111.5 of the Public Utilities Act.
(g) The Agency shall assess fees to each affected utility
to recover the costs incurred in preparation of the annual
procurement plan for the utility.
(h) The Agency shall assess fees to each bidder to recover
the costs incurred in connection with a competitive
procurement process.
(i) (Blank). A renewable energy credit, carbon emission
credit, zero emission credit, or carbon mitigation credit can
only be used once to comply with a single portfolio or other
standard as set forth in subsection (c), subsection (d), or
subsection (d-5) of this Section, respectively. A renewable
energy credit, carbon emission credit, zero emission credit,
or carbon mitigation credit cannot be used to satisfy the
requirements of more than one standard. If more than one type
of credit is issued for the same megawatt hour of energy, only
one credit can be used to satisfy the requirements of a single
standard. After such use, the credit must be retired together
with any other credits issued for the same megawatt hour of
energy.
(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
103-580, eff. 12-8-23.)
(20 ILCS 3855/1-129)
Sec. 1-129. Policy study.
(a) The General Assembly finds that:

HB4687 - 243 - LRB103 36052 LNS 66139 b
(1) in 2021, Illinois became the first state in the
Midwest to mandate a clean energy future when it enacted
the Climate and Equitable Jobs Act (Public Act 102-662);
(2) through the Climate and Equitable Jobs Act,
Illinois established a plan to completely decarbonize its
energy sector by 2050 in an equitable manner that invests
in the State's workforce;
(3) technology in the energy sector continues to
advance creating cleaner and more efficient options to
help the State attain the target of 50% renewable energy
by 2040; and
(4) while numerous legislative proposals purport to
help the State on its path to equitably attain 100% clean
energy, it is important to have a neutral party with
relevant expertise evaluate each proposal to ensure it is
consistent with the State's goals and maximizes benefits
to Illinois residents.
(b) The General Assembly intends:
(1) to prioritize the public interest over the profit
motives of utilities and private developers; and
(2) to invest in projects that reduce harmful
emissions and contribute to the clean economy.
(c) The Agency shall commission and publish a policy study
to evaluate the potential impacts of the proposals described
in subsection (g). The potential impacts may include, but are
not limited to, support for Illinois' decarbonization goals,

HB4687 - 244 - LRB103 36052 LNS 66139 b
the environment, grid reliability, carbon and other pollutant
emissions, resource adequacy, long-term and short-term
electric rates, environmental justice communities, jobs, and
the economy. Where applicable, the study shall address the
impact of a proposal with respect to reports by the
Midcontinent Independent System Operator, PJM, and North
American Electric Reliability Corporation staff that Illinois
has begun to experience resource adequacy issues.
(d) The Agency shall retain the services of technical and
policy experts with energy market and other relevant fields of
expertise. The technical and policy experts may include the
existing planning and procurement consultant and applicable
subcontractors and the procurement administrator and
applicable subcontractors. The Illinois Commerce Commission,
the Illinois Environmental Protection Agency, and the
Department of Commerce and Economic Opportunity shall provide
support to and consult with the Agency. The Agency may consult
with other State agencies, commissions, or task forces as
needed. The Agency may consult with and seek assistance from
the Regional Transmission Organizations PJM and MISO.
(e) The Agency may solicit information, including
confidential or proprietary information, from entities likely
to be impacted by the proposals described in subsection (g)
for purposes of this study. Any information designated as
confidential or proprietary information by the entity
providing the information shall be kept confidential by the

HB4687 - 245 - LRB103 36052 LNS 66139 b
Agency, its consultants, and its contractors and is not
subject to disclosure under the Freedom of Information Act.
(f) The Agency shall publish a final policy study no later
than March 1, 2024 and suitable copies shall be delivered to
the Governor and members of the General Assembly. Prior to
publishing the final policy study, the Agency shall publish a
preliminary draft of the policy study and provide for a 20-day
open public comment period. The Agency shall review public
comments and publish a final policy study no later than 20 days
after the public comment period ends. The policy study shall
include policy recommendations to the General Assembly.
(g) The policy study shall evaluate the following
proposals and may consider or suggest additional or
alternative items:
(1) House Bill 2132 of the 103rd General Assembly as
it passed out of the House on March 24, 2023 or a similar
pilot program to establish one new utility-scale offshore
wind project capable of producing at least 700,000
megawatt hours annually for at least 20 years in Lake
Michigan that includes an equity and inclusion plan to
create job opportunities for underrepresented populations
in addition to equity investment eligible communities and
a fully executed project labor agreement. The pilot
program may result in an increase in the amounts paid by
eligible retail customers in connection with electric
service that shall not exceed 0.25% of the amount paid per

HB4687 - 246 - LRB103 36052 LNS 66139 b
kilowatt hour by those customers during the year ending
May 31, 2009.
(2) Senate Bill 1587 and amendments to Senate Bill
1587 of the 103rd General Assembly filed prior to May 31,
2023 or a similar proposal for the deployment of energy
storage systems supported by the State through the
development of energy storage credit targets for the
Agency to procure on behalf of Illinois electric utilities
from privately owned, large scale energy storage providers
using energy storage contracts of at least 15 year
durations based on a competitive energy storage
procurement plan developed by the Agency designed to
enhance overall grid reliability, flexibility and
efficiency, and to lower electricity prices. The plan must
require participants to comply with the equity
accountability system requirements in subsection (c-10) of
Section 1-75 and to submit proof of project labor
agreements. For purposes of this policy study, it should
be assumed that the costs associated with procuring energy
storage credits shall be recovered through tariffed
charges assessed across all retail customers in a uniform
cents per kilowatt hour charge. In addition to large scale
energy storage, the proposal shall also include the
creation of distributed level energy storage programs
through utility tariffs as approved by the Illinois
Commerce Commission. The programs shall include a

HB4687 - 247 - LRB103 36052 LNS 66139 b
residential and a commercial storage program that would
allow customer-sited batteries to provide grid benefits
and cost-savings to ratepayers. The proposal shall also
include a community solar energy storage program intended
to serve as a peak reduction program by utilizing
community solar paired storage projects deployed daily in
summer months during peak hours. The installation of the
energy storage systems associated with these distributed
renewable systems must comply with the prevailing wage
requirements described in subparagraph (Q) of paragraph
(1) of subsection (c) of Section 1-75. The policy study
shall include a review of the ability of coal-fueled
generating plant sites located in Illinois that have been
closed since 2016 or are scheduled to be closed by 2030 to
support the installation of energy storage systems and
potential associated interconnection costs. This review
shall include: (i) whether those sites are already in a
regional transmission organization interconnection queue,
including MISO's replacement power interconnection queue,
or would be submitted to the replacement power
interconnection queue no later than September 1, 2023,
and, if a site is in a queue, the site's position in the
queue; and (ii) how soon those sites could support
development and installation of energy storage systems and
any barriers to that development. This review shall also
include consultation with electric generation facility

HB4687 - 248 - LRB103 36052 LNS 66139 b
owners or operators and renewable developers that own or
are in the process of developing energy storage systems in
Illinois or that have experience developing energy storage
systems in other States.
(3) A policy establishing high voltage direct current
renewable energy credits that requires the Agency to
procure contracts with at least 25 years but no more than
40 years duration for the delivery of renewable energy
credits on behalf of electric utilities in Illinois with
at least 300,000 customers from a high voltage direct
current transmission facility with more than 100 miles of
underground transmission lines in this State capable of
transmitting electricity at or above 525 kilovolts and
delivering power in the PJM market. High voltage direct
current renewable energy credits procured by the Agency
pursuant to this policy would not count toward the
renewable energy credit purchase targets in subsection
(c)
of Section 1-75. The study shall also evaluate: (i) this
policy's potential for wholesale electricity price impacts
in both PJM and MISO, the net rate impact to Illinois
ratepayers, and the impact on grid reliability and
resilience; (ii) whether a 25-year to 40-year guaranteed
contract is necessary to build a high voltage direct
current transmission facility; (iii) whether specific high
voltage direct current transmission facility projects are
committed to Illinois' fair labor and equity standards;

HB4687 - 249 - LRB103 36052 LNS 66139 b
and (iv) whether the policy creates incentives for
renewable development outside of Illinois rather than
within the State.
(Source: P.A. 103-580, eff. 12-8-23.)
Section 15. The Hydrogen Fuel Replacement Tax Credit Act
is amended by changing Section 15 as follows:
(35 ILCS 55/15)
Sec. 15. Allowable credit.
(a) For tax years ending on or after December 31, 2027 and
beginning before January 1, 2029, a credit is allowed against
the taxes imposed on an eligible taxpayer under subsections
(a) and (b) of Section 201 of the Illinois Income Tax Act in an
amount equal to $1 per kilogram of eligible qualifying
hydrogen used by the eligible taxpayer during the immediately
preceding calendar year. If the use of the qualifying hydrogen
by a taxpayer occurs in or impacts one or more equity
investment eligible communities, then, to be eligible for this
credit, the taxpayer must submit to the Department and make
publicly available documentation that demonstrates that the
use has led to a net reduction of negative environmental
impacts in each impacted equity investment eligible community
and demonstrates that all application requirements detailed in
this Act, including those in subsection (c), have been met for
the year in which the credit is sought. Those impacts shall

HB4687 - 250 - LRB103 36052 LNS 66139 b
include direct, indirect, and cumulative impacts, including,
but not limited to, impacts from using, transporting, and
storing qualifying hydrogen, and impacts to air, water,
traffic, noise, and public health. This documentation must be
specific, quantifiable, measurable, and verifiable. Continued
receipt of tax credits is contingent upon the taxpayer making
this demonstration each year. Failure to demonstrate a
reduction of negative environmental impacts in each impacted
equity investment eligible community shall result in the
denial or forfeiture of tax credits.
(b) The allowable credit provided in subsection (a) of
this Section shall be increased by $0.15 per kilogram of
eligible qualifying hydrogen for eligible qualifying hydrogen
use impacting one or more equity investment eligible
communities if an eligible taxpayer specifically,
quantifiably, and verifiably demonstrates that the eligible
qualifying hydrogen use satisfies both of the following
criteria for the preceding tax year:
(1) The eligible taxpayer's project workforce meets
the minimum equity standards for equity eligible persons
and equity eligible contractors determined by the Illinois
Power Agency pursuant to subsection (c-10) of Section 1-75
of the Illinois Power Agency Act. This requirement shall
apply to both construction employment and ongoing
employment in areas such as, but not limited to,
operations, production, and maintenance.

HB4687 - 251 - LRB103 36052 LNS 66139 b
(2) At least 40% of the total benefits provided by the
use are received by the equity investment eligible
communities impacted by the eligible qualifying hydrogen
use. Benefits to be considered shall include, but are not
limited to: a decrease in the percentage of household
income spent on energy costs; a decrease in environmental
exposures and burdens; an increase in access to low-cost
capital; an increase in employment and job training for
residents; an increase in clean energy enterprise creation
and contracting; increases in community energy ownership;
increased parity in clean energy technology and adoption;
and an increase in energy resilience. As used in this item
(2), "energy resilience" means the ability to operate
energy services in response to a major disruption.
Employment and contracting benefits provided pursuant to
paragraph (1) shall count toward this 40% requirement.
(c) The Department shall develop an application process
for tax credits under this Section that provides meaningful,
timely, and effective public notice of a tax credit
application to members of impacted communities, accounting for
linguistic needs and other relevant characteristics, and
provides meaningful opportunity for public comment on any tax
credit application. The public notice and tax credit
application shall be translated into non-English languages in
impacted communities where a language other than English is
widely spoken. The notice must, at a minimum, include all of

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the following: the name of the applicant, the location of the
use, a brief description of the use and its impacts, and a link
to a website where the application and more detailed
information on the use and its impacts can be found. The notice
shall be written at a third or fourth grade reading level to
ensure ease of understanding for all members of the public.
The opportunity for public comment must, at a minimum, include
a public meeting held in a location within an impacted equity
investment community and easily accessible to residents of
other impacted equity investment eligible communities. Such
public meeting shall be held not less than 30 days after public
notice is provided and not less than 30 days before a decision
is made on the application. The Department shall consider
comments received when determining whether the requirements of
this Section have been met. Applications, supporting
materials, and comments submitted with respect to applications
shall be maintained on the Department website in a publicly
accessible manner.
(d) An eligible taxpayer may not earn tax credits for a tax
year for eligible qualifying hydrogen use in an amount that
exceeds the amount of tax credit allocated to it for the tax
year under Section 25. If the amount of the credit exceeds the
tax liability for the year, the excess may be carried forward
and applied to the tax liability of the 5 taxable years
following the excess credit year. The credit shall be applied
to the earliest year for which there is a tax liability. If

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there are credits from more than one tax year that are
available to offset a liability, the earlier credit shall be
applied first. In no event shall a credit under this Section
reduce the taxpayer's liability to less than zero.
(e) Labor performed on or after the effective date of this
Act to convert the eligible taxpayer's existing equipment or
to install new equipment for the eligible taxpayer to enable
eligible qualifying hydrogen use for which a credit is claimed
under this Act shall be performed by general contractors that
enter into a project labor agreement, as defined by the
Illinois Power Agency Act, prior to construction. The project
labor agreement shall be filed with the Department.
(f) Notwithstanding any provision of law to the contrary,
any eligible taxpayer receiving tax credits under this Act
shall be required to enter into a labor peace agreement with
any bona fide labor organization that represents or is
attempting to represent any of its employees.
(Source: P.A. 103-268, eff. 7-25-23.)
Section 20. The Counties Code is amended by changing
Section 5-12020 as follows:
(55 ILCS 5/5-12020)
Sec. 5-12020. Commercial wind energy facilities and
commercial solar energy facilities.
(a) As used in this Section:

HB4687 - 254 - LRB103 36052 LNS 66139 b
"Commercial solar energy facility" means a "commercial
solar energy system" as defined in Section 10-720 of the
Property Tax Code. "Commercial solar energy facility" does not
mean a utility-scale solar energy facility being constructed
at a site that was eligible to participate in a procurement
event conducted by the Illinois Power Agency pursuant to
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act.
"Commercial wind energy facility" means a wind energy
conversion facility of equal or greater than 500 kilowatts in
total nameplate generating capacity. "Commercial wind energy
facility" includes a wind energy conversion facility seeking
an extension of a permit to construct granted by a county or
municipality before January 27, 2023 (the effective date of
Public Act 102-1123).
"Facility owner" means (i) a person with a direct
ownership interest in a commercial wind energy facility or a
commercial solar energy facility, or both, regardless of
whether the person is involved in acquiring the necessary
rights, permits, and approvals or otherwise planning for the
construction and operation of the facility, and (ii) at the
time the facility is being developed, a person who is acting as
a developer of the facility by acquiring the necessary rights,
permits, and approvals or by planning for the construction and
operation of the facility, regardless of whether the person
will own or operate the facility.

HB4687 - 255 - LRB103 36052 LNS 66139 b
"Nonparticipating property" means real property that is
not a participating property.
"Nonparticipating residence" means a residence that is
located on nonparticipating property and that is existing and
occupied on the date that an application for a permit to
develop the commercial wind energy facility or the commercial
solar energy facility is filed with the county.
"Occupied community building" means any one or more of the
following buildings that is existing and occupied on the date
that the application for a permit to develop the commercial
wind energy facility or the commercial solar energy facility
is filed with the county: a school, place of worship, day care
facility, public library, or community center.
"Participating property" means real property that is the
subject of a written agreement between a facility owner and
the owner of the real property that provides the facility
owner an easement, option, lease, or license to use the real
property for the purpose of constructing a commercial wind
energy facility, a commercial solar energy facility, or
supporting facilities. "Participating property" also includes
real property that is owned by a facility owner for the purpose
of constructing a commercial wind energy facility, a
commercial solar energy facility, or supporting facilities.
"Participating residence" means a residence that is
located on participating property and that is existing and
occupied on the date that an application for a permit to

HB4687 - 256 - LRB103 36052 LNS 66139 b
develop the commercial wind energy facility or the commercial
solar energy facility is filed with the county.
"Protected lands" means real property that is:
(1) subject to a permanent conservation right
consistent with the Real Property Conservation Rights Act;
or
(2) registered or designated as a nature preserve,
buffer, or land and water reserve under the Illinois
Natural Areas Preservation Act.
"Supporting facilities" means the transmission lines,
substations, access roads, meteorological towers, storage
containers, and equipment associated with the generation and
storage of electricity by the commercial wind energy facility
or commercial solar energy facility.
"Wind tower" includes the wind turbine tower, nacelle, and
blades.
(b) Notwithstanding any other provision of law or whether
the county has formed a zoning commission and adopted formal
zoning under Section 5-12007, a county may establish standards
for commercial wind energy facilities, commercial solar energy
facilities, or both. The standards may include all of the
requirements specified in this Section but may not include
requirements for commercial wind energy facilities or
commercial solar energy facilities that are more restrictive
than specified in this Section. A county may also regulate the
siting of commercial wind energy facilities with standards

HB4687 - 257 - LRB103 36052 LNS 66139 b
that are not more restrictive than the requirements specified
in this Section in unincorporated areas of the county that are
outside the zoning jurisdiction of a municipality and that are
outside the 1.5-mile radius surrounding the zoning
jurisdiction of a municipality.
(c) If a county has elected to establish standards under
subsection (b), before the county grants siting approval or a
special use permit for a commercial wind energy facility or a
commercial solar energy facility, or modification of an
approved siting or special use permit, the county board of the
county in which the facility is to be sited or the zoning board
of appeals for the county shall hold at least one public
hearing. The public hearing shall be conducted in accordance
with the Open Meetings Act and shall be held not more than 60
days after the filing of the application for the facility. The
county shall allow interested parties to a special use permit
an opportunity to present evidence and to cross-examine
witnesses at the hearing, but the county may impose reasonable
restrictions on the public hearing, including reasonable time
limitations on the presentation of evidence and the
cross-examination of witnesses. The county shall also allow
public comment at the public hearing in accordance with the
Open Meetings Act. The county shall make its siting and
permitting decisions not more than 30 days after the
conclusion of the public hearing. Notice of the hearing shall
be published in a newspaper of general circulation in the

HB4687 - 258 - LRB103 36052 LNS 66139 b
county. A facility owner must enter into an agricultural
impact mitigation agreement with the Department of Agriculture
prior to the date of the required public hearing. A commercial
wind energy facility owner seeking an extension of a permit
granted by a county prior to July 24, 2015 (the effective date
of Public Act 99-132) must enter into an agricultural impact
mitigation agreement with the Department of Agriculture prior
to a decision by the county to grant the permit extension.
Counties may allow test wind towers or test solar energy
systems to be sited without formal approval by the county
board.
(d) A county with an existing zoning ordinance in conflict
with this Section shall amend that zoning ordinance to be in
compliance with this Section within 120 days after January 27,
2023 (the effective date of Public Act 102-1123).
(e) A county may require:
(1) a wind tower of a commercial wind energy facility
to be sited as follows, with setback distances measured
from the center of the base of the wind tower:
Setback Description Setback Distance
Occupied Community 2.1 times the maximum blade tip
Buildings height of the wind tower to the
nearest point on the outside
wall of the structure

HB4687 - 259 - LRB103 36052 LNS 66139 b
Participating Residences 1.1 times the maximum blade tip
height of the wind tower to the
nearest point on the outside
wall of the structure
Nonparticipating Residences 2.1 times the maximum blade tip
height of the wind tower to the
nearest point on the outside
wall of the structure
Boundary Lines of None
Participating Property
Boundary Lines of 1.1 times the maximum blade tip
Nonparticipating Property height of the wind tower to the
nearest point on the property
line of the nonparticipating
property
Public Road Rights-of-Way 1.1 times the maximum blade tip
height of the wind tower
to the center point of the
public road right-of-way
Overhead Communication and 1.1 times the maximum blade tip

HB4687 - 260 - LRB103 36052 LNS 66139 b
Electric Transmission height of the wind tower to the
and Distribution Facilities nearest edge of the property
(Not Including Overhead line, easement, or
Utility Service Lines to right-of-way
Individual Houses or containing the overhead line
Outbuildings)
Overhead Utility Service None
Lines to Individual
Houses or Outbuildings
Fish and Wildlife Areas 2.1 times the maximum blade
and Illinois Nature tip height of the wind tower
Preserve Commission to the nearest point on the
Protected Lands property line of the fish and
wildlife area or protected
land
This Section does not exempt or excuse compliance with
electric facility clearances approved or required by the
National Electrical Code, The National Electrical Safety
Code, Illinois Commerce Commission, Federal Energy
Regulatory Commission, and their designees or successors.
(2) a wind tower of a commercial wind energy facility
to be sited so that industry standard computer modeling
indicates that any occupied community building or

HB4687 - 261 - LRB103 36052 LNS 66139 b
nonparticipating residence will not experience more than
30 hours per year of shadow flicker under planned
operating conditions;
(3) a commercial solar energy facility to be sited as
follows, with setback distances measured from the nearest
edge of any component of the facility:
Setback Description Setback Distance
Occupied Community 150 feet from the nearest
Buildings and Dwellings on point on the outside wall
Nonparticipating Properties of the structure
Boundary Lines of None
Participating Property
Public Road Rights-of-Way 50 feet from the nearest
edge
Boundary Lines of 50 feet to the nearest
Nonparticipating Property point on the property
line of the nonparticipating
property
(4) a commercial solar energy facility to be sited so
that the facility's perimeter is enclosed by fencing

HB4687 - 262 - LRB103 36052 LNS 66139 b
having a height of at least 6 feet and no more than 25
feet; and
(5) a commercial solar energy facility to be sited so
that no component of a solar panel has a height of more
than 20 feet above ground when the solar energy facility's
arrays are at full tilt.
The requirements set forth in this subsection (e) may be
waived subject to the written consent of the owner of each
affected nonparticipating property.
(f) A county may not set a sound limitation for wind towers
in commercial wind energy facilities or any components in
commercial solar energy facilities that is more restrictive
than the sound limitations established by the Illinois
Pollution Control Board under 35 Ill. Adm. Code Parts 900,
901, and 910.
(g) A county may not place any restriction on the
installation or use of a commercial wind energy facility or a
commercial solar energy facility unless it adopts an ordinance
that complies with this Section. A county may not establish
siting standards for supporting facilities that preclude
development of commercial wind energy facilities or commercial
solar energy facilities.
A request for siting approval or a special use permit for a
commercial wind energy facility or a commercial solar energy
facility, or modification of an approved siting or special use
permit, shall be approved if the request is in compliance with

HB4687 - 263 - LRB103 36052 LNS 66139 b
the standards and conditions imposed in this Act, the zoning
ordinance adopted consistent with this Code, and the
conditions imposed under State and federal statutes and
regulations.
(h) A county may not adopt zoning regulations that
disallow, permanently or temporarily, commercial wind energy
facilities or commercial solar energy facilities from being
developed or operated in any district zoned to allow
agricultural or industrial uses.
(i) A county may not require permit application fees for a
commercial wind energy facility or commercial solar energy
facility that are unreasonable. All application fees imposed
by the county shall be consistent with fees for projects in the
county with similar capital value and cost.
(j) Except as otherwise provided in this Section, a county
shall not require standards for construction, decommissioning,
or deconstruction of a commercial wind energy facility or
commercial solar energy facility or related financial
assurances that are more restrictive than those included in
the Department of Agriculture's standard wind farm
agricultural impact mitigation agreement, template 81818, or
standard solar agricultural impact mitigation agreement,
version 8.19.19, as applicable and in effect on December 31,
2022. The amount of any decommissioning payment shall be in
accordance with the financial assurance required by those
agricultural impact mitigation agreements.

HB4687 - 264 - LRB103 36052 LNS 66139 b
(j-5) A commercial wind energy facility or a commercial
solar energy facility shall file a farmland drainage plan with
the county and impacted drainage districts outlining how
surface and subsurface drainage of farmland will be restored
during and following construction or deconstruction of the
facility. The plan is to be created independently by the
facility developer and shall include the location of any
potentially impacted drainage district facilities to the
extent this information is publicly available from the county
or the drainage district, plans to repair any subsurface
drainage affected during construction or deconstruction using
procedures outlined in the agricultural impact mitigation
agreement entered into by the commercial wind energy facility
owner or commercial solar energy facility owner, and
procedures for the repair and restoration of surface drainage
affected during construction or deconstruction. All surface
and subsurface damage shall be repaired as soon as reasonably
practicable.
(k) A county may not condition approval of a commercial
wind energy facility or commercial solar energy facility on a
property value guarantee and may not require a facility owner
to pay into a neighboring property devaluation escrow account.
(l) A county may require certain vegetative screening
surrounding a commercial wind energy facility or commercial
solar energy facility but may not require earthen berms or
similar structures.

HB4687 - 265 - LRB103 36052 LNS 66139 b
(m) A county may set blade tip height limitations for wind
towers in commercial wind energy facilities but may not set a
blade tip height limitation that is more restrictive than the
height allowed under a Determination of No Hazard to Air
Navigation by the Federal Aviation Administration under 14 CFR
Part 77.
(n) A county may require that a commercial wind energy
facility owner or commercial solar energy facility owner
provide:
(1) the results and recommendations from consultation
with the Illinois Department of Natural Resources that are
obtained through the Ecological Compliance Assessment Tool
(EcoCAT) or a comparable successor tool; and
(2) the results of the United States Fish and Wildlife
Service's Information for Planning and Consulting
environmental review or a comparable successor tool that
is consistent with (i) the "U.S. Fish and Wildlife
Service's Land-Based Wind Energy Guidelines" and (ii) any
applicable United States Fish and Wildlife Service solar
wildlife guidelines that have been subject to public
review.
(o) A county may require a commercial wind energy facility
or commercial solar energy facility to adhere to the
recommendations provided by the Illinois Department of Natural
Resources in an EcoCAT natural resource review report under 17
Ill. Adm. Code Part 1075.

HB4687 - 266 - LRB103 36052 LNS 66139 b
(p) A county may require a facility owner to:
(1) demonstrate avoidance of protected lands as
identified by the Illinois Department of Natural Resources
and the Illinois Nature Preserve Commission; or
(2) consider the recommendations of the Illinois
Department of Natural Resources for setbacks from
protected lands, including areas identified by the
Illinois Nature Preserve Commission.
(q) A county may require that a facility owner provide
evidence of consultation with the Illinois State Historic
Preservation Office to assess potential impacts on
State-registered historic sites under the Illinois State
Agency Historic Resources Preservation Act.
(r) To maximize community benefits, including, but not
limited to, reduced stormwater runoff, flooding, and erosion
at the ground mounted solar energy system, improved soil
health, and increased foraging habitat for game birds,
songbirds, and pollinators, a county may (1) require a
commercial solar energy facility owner to plant, establish,
and maintain for the life of the facility vegetative ground
cover, consistent with the goals of the Pollinator-Friendly
Solar Site Act and (2) require the submittal of a vegetation
management plan that is in compliance with the agricultural
impact mitigation agreement in the application to construct
and operate a commercial solar energy facility in the county
if the vegetative ground cover and vegetation management plan

HB4687 - 267 - LRB103 36052 LNS 66139 b
comply with the requirements of the underlying agreement with
the landowner or landowners where the facility will be
constructed.
No later than 90 days after January 27, 2023 (the
effective date of Public Act 102-1123), the Illinois
Department of Natural Resources shall develop guidelines for
vegetation management plans that may be required under this
subsection for commercial solar energy facilities. The
guidelines must include guidance for short-term and long-term
property management practices that provide and maintain native
and non-invasive naturalized perennial vegetation to protect
the health and well-being of pollinators.
(s) If a facility owner enters into a road use agreement
with the Illinois Department of Transportation, a road
district, or other unit of local government relating to a
commercial wind energy facility or a commercial solar energy
facility, the road use agreement shall require the facility
owner to be responsible for (i) the reasonable cost of
improving roads used by the facility owner to construct the
commercial wind energy facility or the commercial solar energy
facility and (ii) the reasonable cost of repairing roads used
by the facility owner during construction of the commercial
wind energy facility or the commercial solar energy facility
so that those roads are in a condition that is safe for the
driving public after the completion of the facility's
construction. Roadways improved in preparation for and during

HB4687 - 268 - LRB103 36052 LNS 66139 b
the construction of the commercial wind energy facility or
commercial solar energy facility shall be repaired and
restored to the improved condition at the reasonable cost of
the developer if the roadways have degraded or were damaged as
a result of construction-related activities.
The road use agreement shall not require the facility
owner to pay costs, fees, or charges for road work that is not
specifically and uniquely attributable to the construction of
the commercial wind energy facility or the commercial solar
energy facility. Road-related fees, permit fees, or other
charges imposed by the Illinois Department of Transportation,
a road district, or other unit of local government under a road
use agreement with the facility owner shall be reasonably
related to the cost of administration of the road use
agreement.
(s-5) The facility owner shall also compensate landowners
for crop losses or other agricultural damages resulting from
damage to the drainage system caused by the construction of
the commercial wind energy facility or the commercial solar
energy facility. The commercial wind energy facility owner or
commercial solar energy facility owner shall repair or pay for
the repair of all damage to the subsurface drainage system
caused by the construction of the commercial wind energy
facility or the commercial solar energy facility in accordance
with the agriculture impact mitigation agreement requirements
for repair of drainage. The commercial wind energy facility

HB4687 - 269 - LRB103 36052 LNS 66139 b
owner or commercial solar energy facility owner shall repair
or pay for the repair and restoration of surface drainage
caused by the construction or deconstruction of the commercial
wind energy facility or the commercial solar energy facility
as soon as reasonably practicable.
(t) Notwithstanding any other provision of law, a facility
owner with siting approval from a county to construct a
commercial wind energy facility or a commercial solar energy
facility is authorized to cross or impact a drainage system,
including, but not limited to, drainage tiles, open drainage
ditches, culverts, and water gathering vaults, owned or under
the control of a drainage district under the Illinois Drainage
Code without obtaining prior agreement or approval from the
drainage district in accordance with the farmland drainage
plan required by subsection (j-5).
(u) The amendments to this Section adopted in Public Act
102-1123 do not apply to: (1) an application for siting
approval or for a special use permit for a commercial wind
energy facility or commercial solar energy facility if the
application was submitted to a unit of local government before
January 27, 2023 (the effective date of Public Act 102-1123);
(2) a commercial wind energy facility or a commercial solar
energy facility if the facility owner has submitted an
agricultural impact mitigation agreement to the Department of
Agriculture before January 27, 2023 (the effective date of
Public Act 102-1123); or (3) a commercial wind energy or

HB4687 - 270 - LRB103 36052 LNS 66139 b
commercial solar energy development on property that is
located within an enterprise zone certified under the Illinois
Enterprise Zone Act, that was classified as industrial by the
appropriate zoning authority on or before January 27, 2023,
and that is located within 4 miles of the intersection of
Interstate 88 and Interstate 39.
(Source: P.A. 102-1123, eff. 1-27-23; 103-81, eff. 6-9-23;
103-580, eff. 12-8-23.)
Section 25. The Public Utilities Act is amended by
changing Sections 8-218, 16-108, and 16-111.5 as follows:
(220 ILCS 5/8-218)
Sec. 8-218. Utility-scale pilot projects.
(a) Electric utilities serving greater than 500,000
customers but less than 3,000,000 customers may propose, plan
for, construct, install, control, own, manage, or operate up
to 2 pilot projects consisting of utility-scale photovoltaic
energy generation facilities. A pilot project may consist of
photovoltaic energy generation facilities located on one or
more sites and may be installed or constructed in phases.
Energy storage facilities that are planned for, constructed,
installed, controlled, owned, managed, or operated may be
constructed in connection with the photovoltaic electricity
generation pilot projects.
(b) Pilot projects shall be sited in equity investment

HB4687 - 271 - LRB103 36052 LNS 66139 b
eligible communities in or near the towns of Peoria and East
St. Louis and must result in economic benefits for the members
of the communities in which the project will be located. The
amount paid per pilot project with or without energy storage
facilities cannot exceed $20,000,000. The electric utility's
costs of planning for, constructing, installing, controlling,
owning, managing, or operating the photovoltaic electricity
generation facilities and energy storage facilities may be
recovered, on a kilowatt hour basis, via an automatic
adjustment clause tariff applicable to all retail customers,
with the tariff to be approved by the Commission after
opportunity for review, and with an annual reconciliation
component; and for purposes of cost recovery, the photovoltaic
electricity production facilities may be treated as regulatory
assets, using the same ratemaking treatment in paragraph (1)
of subsection (h) of Section 16-107.6 of this Act, provided:
(1) the Commission shall have the authority to determine the
reasonableness of the costs of the facilities, and (2) any
monetary value of power and energy from the facilities shall
be credited against the delivery services revenue requirement.
(c) Any electric utility seeking to propose, plan for,
construct, install, control, own, manage, or operate a pilot
project pursuant to this Section must commit to using a
diverse and equitable workforce and a diverse set of
contractors, including minority-owned businesses,
disadvantaged businesses, trade unions, graduates of any

HB4687 - 272 - LRB103 36052 LNS 66139 b
workforce training programs established by this amendatory Act
of the 102nd General Assembly, and small businesses. An
electric utility must comply with the equity commitment
requirements in subsection (c-10) of Section 1-75 of the
Illinois Power Agency Act. The electric utility must certify
that not less than the prevailing wage will be paid to
employees engaged in construction activities associated with
the pilot project. The electric utility must file a project
labor agreement, as defined in the Illinois Power Agency Act,
with the Commission prior to constructing, installing,
controlling, or owning a pilot project authorized by this
Section.
(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
(220 ILCS 5/16-108)
Sec. 16-108. Recovery of costs associated with the
provision of delivery and other services.
(a) An electric utility shall file a delivery services
tariff with the Commission at least 210 days prior to the date
that it is required to begin offering such services pursuant
to this Act. An electric utility shall provide the components
of delivery services that are subject to the jurisdiction of
the Federal Energy Regulatory Commission at the same prices,
terms and conditions set forth in its applicable tariff as
approved or allowed into effect by that Commission. The
Commission shall otherwise have the authority pursuant to

HB4687 - 273 - LRB103 36052 LNS 66139 b
Article IX to review, approve, and modify the prices, terms
and conditions of those components of delivery services not
subject to the jurisdiction of the Federal Energy Regulatory
Commission, including the authority to determine the extent to
which such delivery services should be offered on an unbundled
basis. In making any such determination the Commission shall
consider, at a minimum, the effect of additional unbundling on
(i) the objective of just and reasonable rates, (ii) electric
utility employees, and (iii) the development of competitive
markets for electric energy services in Illinois.
(b) The Commission shall enter an order approving, or
approving as modified, the delivery services tariff no later
than 30 days prior to the date on which the electric utility
must commence offering such services. The Commission may
subsequently modify such tariff pursuant to this Act.
(c) The electric utility's tariffs shall define the
classes of its customers for purposes of delivery services
charges. Delivery services shall be priced and made available
to all retail customers electing delivery services in each
such class on a nondiscriminatory basis regardless of whether
the retail customer chooses the electric utility, an affiliate
of the electric utility, or another entity as its supplier of
electric power and energy. Charges for delivery services shall
be cost based, and shall allow the electric utility to recover
the costs of providing delivery services through its charges
to its delivery service customers that use the facilities and

HB4687 - 274 - LRB103 36052 LNS 66139 b
services associated with such costs. Such costs shall include
the costs of owning, operating and maintaining transmission
and distribution facilities. The Commission shall also be
authorized to consider whether, and if so to what extent, the
following costs are appropriately included in the electric
utility's delivery services rates: (i) the costs of that
portion of generation facilities used for the production and
absorption of reactive power in order that retail customers
located in the electric utility's service area can receive
electric power and energy from suppliers other than the
electric utility, and (ii) the costs associated with the use
and redispatch of generation facilities to mitigate
constraints on the transmission or distribution system in
order that retail customers located in the electric utility's
service area can receive electric power and energy from
suppliers other than the electric utility. Nothing in this
subsection shall be construed as directing the Commission to
allocate any of the costs described in (i) or (ii) that are
found to be appropriately included in the electric utility's
delivery services rates to any particular customer group or
geographic area in setting delivery services rates.
(d) The Commission shall establish charges, terms and
conditions for delivery services that are just and reasonable
and shall take into account customer impacts when establishing
such charges. In establishing charges, terms and conditions
for delivery services, the Commission shall take into account

HB4687 - 275 - LRB103 36052 LNS 66139 b
voltage level differences. A retail customer shall have the
option to request to purchase electric service at any delivery
service voltage reasonably and technically feasible from the
electric facilities serving that customer's premises provided
that there are no significant adverse impacts upon system
reliability or system efficiency. A retail customer shall also
have the option to request to purchase electric service at any
point of delivery that is reasonably and technically feasible
provided that there are no significant adverse impacts on
system reliability or efficiency. Such requests shall not be
unreasonably denied.
(e) Electric utilities shall recover the costs of
installing, operating or maintaining facilities for the
particular benefit of one or more delivery services customers,
including without limitation any costs incurred in complying
with a customer's request to be served at a different voltage
level, directly from the retail customer or customers for
whose benefit the costs were incurred, to the extent such
costs are not recovered through the charges referred to in
subsections (c) and (d) of this Section.
(f) An electric utility shall be entitled but not required
to implement transition charges in conjunction with the
offering of delivery services pursuant to Section 16-104. If
an electric utility implements transition charges, it shall
implement such charges for all delivery services customers and
for all customers described in subsection (h), but shall not

HB4687 - 276 - LRB103 36052 LNS 66139 b
implement transition charges for power and energy that a
retail customer takes from cogeneration or self-generation
facilities located on that retail customer's premises, if such
facilities meet the following criteria:
(i) the cogeneration or self-generation facilities
serve a single retail customer and are located on that
retail customer's premises (for purposes of this
subparagraph and subparagraph (ii), an industrial or
manufacturing retail customer and a third party contractor
that is served by such industrial or manufacturing
customer through such retail customer's own electrical
distribution facilities under the circumstances described
in subsection (vi) of the definition of "alternative
retail electric supplier" set forth in Section 16-102,
shall be considered a single retail customer);
(ii) the cogeneration or self-generation facilities
either (A) are sized pursuant to generally accepted
engineering standards for the retail customer's electrical
load at that premises (taking into account standby or
other reliability considerations related to that retail
customer's operations at that site) or (B) if the facility
is a cogeneration facility located on the retail
customer's premises, the retail customer is the thermal
host for that facility and the facility has been designed
to meet that retail customer's thermal energy requirements
resulting in electrical output beyond that retail

HB4687 - 277 - LRB103 36052 LNS 66139 b
customer's electrical demand at that premises, comply with
the operating and efficiency standards applicable to
"qualifying facilities" specified in title 18 Code of
Federal Regulations Section 292.205 as in effect on the
effective date of this amendatory Act of 1999;
(iii) the retail customer on whose premises the
facilities are located either has an exclusive right to
receive, and corresponding obligation to pay for, all of
the electrical capacity of the facility, or in the case of
a cogeneration facility that has been designed to meet the
retail customer's thermal energy requirements at that
premises, an identified amount of the electrical capacity
of the facility, over a minimum 5-year period; and
(iv) if the cogeneration facility is sized for the
retail customer's thermal load at that premises but
exceeds the electrical load, any sales of excess power or
energy are made only at wholesale, are subject to the
jurisdiction of the Federal Energy Regulatory Commission,
and are not for the purpose of circumventing the
provisions of this subsection (f).
If a generation facility located at a retail customer's
premises does not meet the above criteria, an electric utility
implementing transition charges shall implement a transition
charge until December 31, 2006 for any power and energy taken
by such retail customer from such facility as if such power and
energy had been delivered by the electric utility. Provided,

HB4687 - 278 - LRB103 36052 LNS 66139 b
however, that an industrial retail customer that is taking
power from a generation facility that does not meet the above
criteria but that is located on such customer's premises will
not be subject to a transition charge for the power and energy
taken by such retail customer from such generation facility if
the facility does not serve any other retail customer and
either was installed on behalf of the customer and for its own
use prior to January 1, 1997, or is both predominantly fueled
by byproducts of such customer's manufacturing process at such
premises and sells or offers an average of 300 megawatts or
more of electricity produced from such generation facility
into the wholesale market. Such charges shall be calculated as
provided in Section 16-102, and shall be collected on each
kilowatt-hour delivered under a delivery services tariff to a
retail customer from the date the customer first takes
delivery services until December 31, 2006 except as provided
in subsection (h) of this Section. Provided, however, that an
electric utility, other than an electric utility providing
service to at least 1,000,000 customers in this State on
January 1, 1999, shall be entitled to petition for entry of an
order by the Commission authorizing the electric utility to
implement transition charges for an additional period ending
no later than December 31, 2008. The electric utility shall
file its petition with supporting evidence no earlier than 16
months, and no later than 12 months, prior to December 31,
2006. The Commission shall hold a hearing on the electric

HB4687 - 279 - LRB103 36052 LNS 66139 b
utility's petition and shall enter its order no later than 8
months after the petition is filed. The Commission shall
determine whether and to what extent the electric utility
shall be authorized to implement transition charges for an
additional period. The Commission may authorize the electric
utility to implement transition charges for some or all of the
additional period, and shall determine the mitigation factors
to be used in implementing such transition charges; provided,
that the Commission shall not authorize mitigation factors
less than 110% of those in effect during the 12 months ended
December 31, 2006. In making its determination, the Commission
shall consider the following factors: the necessity to
implement transition charges for an additional period in order
to maintain the financial integrity of the electric utility;
the prudence of the electric utility's actions in reducing its
costs since the effective date of this amendatory Act of 1997;
the ability of the electric utility to provide safe, adequate
and reliable service to retail customers in its service area;
and the impact on competition of allowing the electric utility
to implement transition charges for the additional period.
(g) The electric utility shall file tariffs that establish
the transition charges to be paid by each class of customers to
the electric utility in conjunction with the provision of
delivery services. The electric utility's tariffs shall define
the classes of its customers for purposes of calculating
transition charges. The electric utility's tariffs shall

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provide for the calculation of transition charges on a
customer-specific basis for any retail customer whose average
monthly maximum electrical demand on the electric utility's
system during the 6 months with the customer's highest monthly
maximum electrical demands equals or exceeds 3.0 megawatts for
electric utilities having more than 1,000,000 customers, and
for other electric utilities for any customer that has an
average monthly maximum electrical demand on the electric
utility's system of one megawatt or more, and (A) for which
there exists data on the customer's usage during the 3 years
preceding the date that the customer became eligible to take
delivery services, or (B) for which there does not exist data
on the customer's usage during the 3 years preceding the date
that the customer became eligible to take delivery services,
if in the electric utility's reasonable judgment there exists
comparable usage information or a sufficient basis to develop
such information, and further provided that the electric
utility can require customers for which an individual
calculation is made to sign contracts that set forth the
transition charges to be paid by the customer to the electric
utility pursuant to the tariff.
(h) An electric utility shall also be entitled to file
tariffs that allow it to collect transition charges from
retail customers in the electric utility's service area that
do not take delivery services but that take electric power or
energy from an alternative retail electric supplier or from an

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electric utility other than the electric utility in whose
service area the customer is located. Such charges shall be
calculated, in accordance with the definition of transition
charges in Section 16-102, for the period of time that the
customer would be obligated to pay transition charges if it
were taking delivery services, except that no deduction for
delivery services revenues shall be made in such calculation,
and usage data from the customer's class shall be used where
historical usage data is not available for the individual
customer. The customer shall be obligated to pay such charges
on a lump sum basis on or before the date on which the customer
commences to take service from the alternative retail electric
supplier or other electric utility, provided, that the
electric utility in whose service area the customer is located
shall offer the customer the option of signing a contract
pursuant to which the customer pays such charges ratably over
the period in which the charges would otherwise have applied.
(i) An electric utility shall be entitled to add to the
bills of delivery services customers charges pursuant to
Sections 9-221, 9-222 (except as provided in Section 9-222.1),
and Section 16-114 of this Act, Section 5-5 of the Electricity
Infrastructure Maintenance Fee Law, Section 6-5 of the
Renewable Energy, Energy Efficiency, and Coal Resources
Development Law of 1997, and Section 13 of the Energy
Assistance Act.
(i-5) (Blank). An electric utility required to impose the

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Coal to Solar and Energy Storage Initiative Charge provided
for in subsection (c-5) of Section 1-75 of the Illinois Power
Agency Act shall add such charge to the bills of its delivery
services customers pursuant to the terms of a tariff
conforming to the requirements of subsection (c-5) of Section
1-75 of the Illinois Power Agency Act and this subsection
(i-5) and filed with and approved by the Commission. The
electric utility shall file its proposed tariff with the
Commission on or before July 1, 2022 to be effective, after
review and approval or modification by the Commission,
beginning January 1, 2023. On or before December 1, 2022, the
Commission shall review the electric utility's proposed
tariff, including by conducting a docketed proceeding if
deemed necessary by the Commission, and shall approve the
proposed tariff or direct the electric utility to make
modifications the Commission finds necessary for the tariff to
conform to the requirements of subsection (c-5) of Section
1-75 of the Illinois Power Agency Act and this subsection
(i-5). The electric utility's tariff shall provide for
imposition of the Coal to Solar and Energy Storage Initiative
Charge on a per-kilowatthour basis to all kilowatthours
delivered by the electric utility to its delivery services
customers. The tariff shall provide for the calculation of the
Coal to Solar and Energy Storage Initiative Charge to be in
effect for the year beginning January 1, 2023 and each year
beginning January 1 thereafter, sufficient to collect the

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electric utility's estimated payment obligations for the
delivery year beginning the following June 1 under contracts
for purchase of renewable energy credits entered into pursuant
to subsection (c-5) of Section 1-75 of the Illinois Power
Agency Act and the obligations of the Department of Commerce
and Economic Opportunity, or any successor department or
agency, which for purposes of this subsection (i-5) shall be
referred to as the Department, to make grant payments during
such delivery year from the Coal to Solar and Energy Storage
Initiative Fund pursuant to grant contracts entered into
pursuant to subsection (c-5) of Section 1-75 of the Illinois
Power Agency Act, and using the electric utility's
kilowatthour deliveries to its delivery services customers
during the delivery year ended May 31 of the preceding
calendar year. On or before November 1 of each year beginning
November 1, 2022, the Department shall notify the electric
utilities of the amount of the Department's estimated
obligations for grant payments during the delivery year
beginning the following June 1 pursuant to grant contracts
entered into pursuant to subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act; and each electric utility shall
incorporate in the calculation of its Coal to Solar and Energy
Storage Initiative Charge the fractional portion of the
Department's estimated obligations equal to the electric
utility's kilowatthour deliveries to its delivery services
customers in the delivery year ended the preceding May 31

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divided by the aggregate deliveries of both electric utilities
to delivery services customers in such delivery year. The
electric utility shall remit on a monthly basis to the State
Treasurer, for deposit in the Coal to Solar and Energy Storage
Initiative Fund provided for in subsection (c-5) of Section
1-75 of the Illinois Power Agency Act, the electric utility's
collections of the Coal to Solar and Energy Storage Initiative
Charge estimated to be needed by the Department for grant
payments pursuant to grant contracts entered into pursuant to
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act. The initial charge under the electric utility's tariff
shall be effective for kilowatthours delivered beginning
January 1, 2023, and thereafter shall be revised to be
effective January 1, 2024 and each January 1 thereafter, based
on the payment obligations for the delivery year beginning the
following June 1. The tariff shall provide for the electric
utility to make an annual filing with the Commission on or
before November 15 of each year, beginning in 2023, setting
forth the Coal to Solar and Energy Storage Initiative Charge
to be in effect for the year beginning the following January 1.
The electric utility's tariff shall also provide that the
electric utility shall make a filing with the Commission on or
before August 1 of each year beginning in 2024 setting forth a
reconciliation, for the delivery year ended the preceding May
31, of the electric utility's collections of the Coal to Solar
and Energy Storage Initiative Charge against actual payments

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for renewable energy credits pursuant to contracts entered
into, and the actual grant payments by the Department pursuant
to grant contracts entered into, pursuant to subsection (c-5)
of Section 1-75 of the Illinois Power Agency Act. The tariff
shall provide that any excess or shortfall of collections to
payments shall be deducted from or added to, on a
per-kilowatthour basis, the Coal to Solar and Energy Storage
Initiative Charge, over the 6-month period beginning October 1
of that calendar year.
(j) If a retail customer that obtains electric power and
energy from cogeneration or self-generation facilities
installed for its own use on or before January 1, 1997,
subsequently takes service from an alternative retail electric
supplier or an electric utility other than the electric
utility in whose service area the customer is located for any
portion of the customer's electric power and energy
requirements formerly obtained from those facilities
(including that amount purchased from the utility in lieu of
such generation and not as standby power purchases, under a
cogeneration displacement tariff in effect as of the effective
date of this amendatory Act of 1997), the transition charges
otherwise applicable pursuant to subsections (f), (g), or (h)
of this Section shall not be applicable in any year to that
portion of the customer's electric power and energy
requirements formerly obtained from those facilities,
provided, that for purposes of this subsection (j), such

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portion shall not exceed the average number of kilowatt-hours
per year obtained from the cogeneration or self-generation
facilities during the 3 years prior to the date on which the
customer became eligible for delivery services, except as
provided in subsection (f) of Section 16-110.
(k) The electric utility shall be entitled to recover
through tariffed charges all of the costs associated with the
purchase of zero emission credits from zero emission
facilities to meet the requirements of subsection (d-5) of
Section 1-75 of the Illinois Power Agency Act and all of the
costs associated with the purchase of carbon mitigation
credits from carbon-free energy resources to meet the
requirements of subsection (d-10) of Section 1-75 of the
Illinois Power Agency Act. Such costs shall include the costs
of procuring the zero emission credits and carbon mitigation
credits from carbon-free energy resources, as well as the
reasonable costs that the utility incurs as part of the
procurement processes and to implement and comply with plans
and processes approved by the Commission under subsection
(d-5) subsections (d-5) and (d-10). The costs shall be
allocated across all retail customers through a single,
uniform cents per kilowatt-hour charge applicable to all
retail customers, which shall appear as a separate line item
on each customer's bill. Beginning June 1, 2017, the electric
utility shall be entitled to recover through tariffed charges
all of the costs associated with the purchase of renewable

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energy resources to meet the renewable energy resource
standards of subsection (c) of Section 1-75 of the Illinois
Power Agency Act, under procurement plans as approved in
accordance with that Section and Section 16-111.5 of this Act.
Such costs shall include the costs of procuring the renewable
energy resources, as well as the reasonable costs that the
utility incurs as part of the procurement processes and to
implement and comply with plans and processes approved by the
Commission under such Sections. The costs associated with the
purchase of renewable energy resources shall be allocated
across all retail customers in proportion to the amount of
renewable energy resources the utility procures for such
customers through a single, uniform cents per kilowatt-hour
charge applicable to such retail customers, which shall appear
as a separate line item on each such customer's bill. The
credits, costs, and penalties associated with the self-direct
renewable portfolio standard compliance program described in
subparagraph (R) of paragraph (1) of subsection (c) of Section
1-75 of the Illinois Power Agency Act shall be allocated to
approved eligible self-direct customers by the utility in a
cents per kilowatt-hour credit, cost, or penalty, which shall
appear as a separate line item on each such customer's bill.
Notwithstanding whether the Commission has approved the
initial long-term renewable resources procurement plan as of
June 1, 2017, an electric utility shall place new tariffed
charges into effect beginning with the June 2017 monthly

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billing period, to the extent practicable, to begin recovering
the costs of procuring renewable energy resources, as those
charges are calculated under the limitations described in
subparagraph (E) of paragraph (1) of subsection (c) of Section
1-75 of the Illinois Power Agency Act. Notwithstanding the
date on which the utility places such new tariffed charges
into effect, the utility shall be permitted to collect the
charges under such tariff as if the tariff had been in effect
beginning with the first day of the June 2017 monthly billing
period. For the delivery years commencing June 1, 2017, June
1, 2018, and June 1, 2019, and each delivery year thereafter,
the electric utility shall deposit into a separate interest
bearing account of a financial institution the monies
collected under the tariffed charges. Money collected from
customers for the procurement of renewable energy resources in
a given delivery year may be spent by the utility for the
procurement of renewable resources over any of the following 5
delivery years, after which unspent money shall be credited
back to retail customers. The electric utility shall spend all
money collected in earlier delivery years that has not yet
been returned to customers, first, before spending money
collected in later delivery years. Any interest earned shall
be credited back to retail customers under the reconciliation
proceeding provided for in this subsection (k), provided that
the electric utility shall first be reimbursed from the
interest for the administrative costs that it incurs to

HB4687 - 289 - LRB103 36052 LNS 66139 b
administer and manage the account. Any taxes due on the funds
in the account, or interest earned on it, will be paid from the
account or, if insufficient monies are available in the
account, from the monies collected under the tariffed charges
to recover the costs of procuring renewable energy resources.
Monies deposited in the account shall be subject to the
review, reconciliation, and true-up process described in this
subsection (k) that is applicable to the funds collected and
costs incurred for the procurement of renewable energy
resources.
The electric utility shall be entitled to recover all of
the costs identified in this subsection (k) through automatic
adjustment clause tariffs applicable to all of the utility's
retail customers that allow the electric utility to adjust its
tariffed charges consistent with this subsection (k). The
determination as to whether any excess funds were collected
during a given delivery year for the purchase of renewable
energy resources, and the crediting of any excess funds back
to retail customers, shall not be made until after the close of
the delivery year, which will ensure that the maximum amount
of funds is available to implement the approved long-term
renewable resources procurement plan during a given delivery
year. The amount of excess funds eligible to be credited back
to retail customers shall be reduced by an amount equal to the
payment obligations required by any contracts entered into by
an electric utility under contracts described in subsection

HB4687 - 290 - LRB103 36052 LNS 66139 b
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
Illinois Power Agency Act, even if such payments have not yet
been made and regardless of the delivery year in which those
payment obligations were incurred. Notwithstanding anything to
the contrary, including in tariffs authorized by this
subsection (k) in effect before the effective date of this
amendatory Act of the 102nd General Assembly, all unspent
funds as of May 31, 2021, excluding any funds credited to
customers during any utility billing cycle that commences
prior to the effective date of this amendatory Act of the 102nd
General Assembly, shall remain in the utility account and
shall on a first in, first out basis be used toward utility
payment obligations under contracts described in subsection
(b) of Section 1-56 and subsection (c) of Section 1-75 of the
Illinois Power Agency Act. The electric utility's collections
under such automatic adjustment clause tariffs to recover the
costs of renewable energy resources, and zero emission credits
from zero emission facilities, and carbon mitigation credits
from carbon-free energy resources shall be subject to separate
annual review, reconciliation, and true-up against actual
costs by the Commission under a procedure that shall be
specified in the electric utility's automatic adjustment
clause tariffs and that shall be approved by the Commission in
connection with its approval of such tariffs. The procedure
shall provide that any difference between the electric
utility's collections for zero emission credits and carbon

HB4687 - 291 - LRB103 36052 LNS 66139 b
mitigation credits under the automatic adjustment charges for
an annual period and the electric utility's actual costs of
renewable energy resources and zero emission credits from zero
emission facilities and carbon mitigation credits from
carbon-free energy resources for that same annual period shall
be refunded to or collected from, as applicable, the electric
utility's retail customers in subsequent periods.
Nothing in this subsection (k) is intended to affect,
limit, or change the right of the electric utility to recover
the costs associated with the procurement of renewable energy
resources for periods commencing before, on, or after June 1,
2017, as otherwise provided in the Illinois Power Agency Act.
The funding available under this subsection (k), if any,
for the programs described under subsection (b) of Section
1-56 of the Illinois Power Agency Act shall not reduce the
amount of funding for the programs described in subparagraph
(O) of paragraph (1) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act. If funding is available under this
subsection (k) for programs described under subsection (b) of
Section 1-56 of the Illinois Power Agency Act, then the
long-term renewable resources plan shall provide for the
Agency to procure contracts in an amount that does not exceed
the funding, and the contracts approved by the Commission
shall be executed by the applicable utility or utilities.
(l) A utility that has terminated any contract executed
under subsection (d-5) or (d-10) of Section 1-75 of the

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Illinois Power Agency Act shall be entitled to recover any
remaining balance associated with the purchase of zero
emission credits prior to such termination, and such utility
shall also apply a credit to its retail customer bills in the
event of any over-collection.
(m)(1) An electric utility that recovers its costs of
procuring zero emission credits from zero emission facilities
through a cents-per-kilowatt-hour kilowatthour charge under
subsection (k) of this Section shall be subject to the
requirements of this subsection (m). Notwithstanding anything
to the contrary, such electric utility shall, beginning on
April 30, 2018, and each April 30 thereafter until April 30,
2026, calculate whether any reduction must be applied to such
cents-per-kilowatt-hour kilowatthour charge that is paid by
retail customers of the electric utility that are exempt from
have opted out of subsections (a) through (j) of Section
8-103B of this Act under subsection (l) of Section 8-103B.
Such charge shall be reduced for such customers for the next
delivery year commencing on June 1 based on the amount
necessary, if any, to limit the annual estimated average net
increase for the prior calendar year due to the future energy
investment costs to no more than 1.3% of 5.98 cents per
kilowatt-hour, which is the average amount paid per kilowatt
hour kilowatthour for electric service during the year ending
December 31, 2015 by Illinois industrial retail customers, as
reported to the Edison Electric Institute.

HB4687 - 293 - LRB103 36052 LNS 66139 b
The calculations required by this subsection (m) shall be
made only once for each year, and no subsequent rate impact
determinations shall be made.
(2) For purposes of this Section, "future energy
investment costs" shall be calculated by subtracting the
cents-per-kilowatt-hour kilowatthour charge identified in
subparagraph (A) of this paragraph (2) from the sum of the
cents-per-kilowatt-hour kilowatthour charges identified in
subparagraph (B) of this paragraph (2):
(A) The cents-per-kilowatt-hour kilowatthour charge
identified in the electric utility's tariff placed into
effect under Section 8-103 of the Public Utilities Act
that, on December 1, 2016, was applicable to those retail
customers that are exempt from have opted out of
subsections (a) through (j) of Section 8-103B of this Act
under subsection (l) of Section 8-103B.
(B) The sum of the following cents-per-kilowatt-hour
kilowatthour charges applicable to those retail customers
that are exempt from have opted out of subsections (a)
through (j) of Section 8-103B of this Act under subsection
(l) of Section 8-103B, provided that if one or more of the
following charges has been in effect and applied to such
customers for more than one calendar year, then each
charge shall be equal to the average of the charges
applied over a period that commences with the calendar
year ending December 31, 2017 and ends with the most

HB4687 - 294 - LRB103 36052 LNS 66139 b
recently completed calendar year prior to the calculation
required by this subsection (m):
(i) the cents-per-kilowatt-hour kilowatthour
charge to recover the costs incurred by the utility
under subsection (d-5) of Section 1-75 of the Illinois
Power Agency Act, adjusted for any reductions required
under this subsection (m); and
(ii) the cents-per-kilowatt-hour kilowatthour
charge to recover the costs incurred by the utility
under Section 16-107.6 of the Public Utilities Act.
If no charge was applied for a given calendar year
under item (i) or (ii) of this subparagraph (B), then the
value of the charge for that year shall be zero.
(3) If a reduction is required by the calculation
performed under this subsection (m), then the amount of the
reduction shall be multiplied by the number of years reflected
in the averages calculated under subparagraph (B) of paragraph
(2) of this subsection (m). Such reduction shall be applied to
the cents-per-kilowatt-hour kilowatthour charge that is
applicable to those retail customers that are exempt from have
opted out of subsections (a) through (j) of Section 8-103B of
this Act under subsection (l) of Section 8-103B beginning with
the next delivery year commencing after the date of the
calculation required by this subsection (m).
(4) The electric utility shall file a notice with the
Commission on May 1 of 2018 and each May 1 thereafter until May

HB4687 - 295 - LRB103 36052 LNS 66139 b
1, 2026 containing the reduction, if any, which must be
applied for the delivery year which begins in the year of the
filing. The notice shall contain the calculations made
pursuant to this Section. By October 1 of each year beginning
in 2018, each electric utility shall notify the Commission if
it appears, based on an estimate of the calculation required
in this subsection (m), that a reduction will be required in
the next year.
(Source: P.A. 102-662, eff. 9-15-21.)
(220 ILCS 5/16-111.5)
Sec. 16-111.5. Provisions relating to procurement.
(a) An electric utility that on December 31, 2005 served
at least 100,000 customers in Illinois shall procure power and
energy for its eligible retail customers in accordance with
the applicable provisions set forth in Section 1-75 of the
Illinois Power Agency Act and this Section. Beginning with the
delivery year commencing on June 1, 2017, such electric
utility shall also procure zero emission credits from zero
emission facilities in accordance with the applicable
provisions set forth in Section 1-75 of the Illinois Power
Agency Act, and, for years beginning on or after June 1, 2017,
the utility shall procure renewable energy resources in
accordance with the applicable provisions set forth in Section
1-75 of the Illinois Power Agency Act and this Section.
Beginning with the delivery year commencing on June 1, 2022,

HB4687 - 296 - LRB103 36052 LNS 66139 b
an electric utility serving over 3,000,000 customers shall
also procure carbon mitigation credits from carbon-free energy
resources in accordance with the applicable provisions set
forth in Section 1-75 of the Illinois Power Agency Act and this
Section. A small multi-jurisdictional electric utility that on
December 31, 2005 served less than 100,000 customers in
Illinois may elect to procure power and energy for all or a
portion of its eligible Illinois retail customers in
accordance with the applicable provisions set forth in this
Section and Section 1-75 of the Illinois Power Agency Act.
This Section shall not apply to a small multi-jurisdictional
utility until such time as a small multi-jurisdictional
utility requests the Illinois Power Agency to prepare a
procurement plan for its eligible retail customers. "Eligible
retail customers" for the purposes of this Section means those
retail customers that purchase power and energy from the
electric utility under fixed-price bundled service tariffs,
other than those retail customers whose service is declared or
deemed competitive under Section 16-113 and those other
customer groups specified in this Section, including
self-generating customers, customers electing hourly pricing,
or those customers who are otherwise ineligible for
fixed-price bundled tariff service. For those customers that
are excluded from the procurement plan's electric supply
service requirements, and the utility shall procure any supply
requirements, including capacity, ancillary services, and

HB4687 - 297 - LRB103 36052 LNS 66139 b
hourly priced energy, in the applicable markets as needed to
serve those customers, provided that the utility may include
in its procurement plan load requirements for the load that is
associated with those retail customers whose service has been
declared or deemed competitive pursuant to Section 16-113 of
this Act to the extent that those customers are purchasing
power and energy during one of the transition periods
identified in subsection (b) of Section 16-113 of this Act.
(b) A procurement plan shall be prepared for each electric
utility consistent with the applicable requirements of the
Illinois Power Agency Act and this Section. For purposes of
this Section, Illinois electric utilities that are affiliated
by virtue of a common parent company are considered to be a
single electric utility. Small multi-jurisdictional utilities
may request a procurement plan for a portion of or all of its
Illinois load. Each procurement plan shall analyze the
projected balance of supply and demand for those retail
customers to be included in the plan's electric supply service
requirements over a 5-year period, with the first planning
year beginning on June 1 of the year following the year in
which the plan is filed. The plan shall specifically identify
the wholesale products to be procured following plan approval,
and shall follow all the requirements set forth in the Public
Utilities Act and all applicable State and federal laws,
statutes, rules, or regulations, as well as Commission orders.
Nothing in this Section precludes consideration of contracts

HB4687 - 298 - LRB103 36052 LNS 66139 b
longer than 5 years and related forecast data. Unless
specified otherwise in this Section, in the procurement plan
or in the implementing tariff, any procurement occurring in
accordance with this plan shall be competitively bid through a
request for proposals process. Approval and implementation of
the procurement plan shall be subject to review and approval
by the Commission according to the provisions set forth in
this Section. A procurement plan shall include each of the
following components:
(1) Hourly load analysis. This analysis shall include:
(i) multi-year historical analysis of hourly
loads;
(ii) switching trends and competitive retail
market analysis;
(iii) known or projected changes to future loads;
and
(iv) growth forecasts by customer class.
(2) Analysis of the impact of any demand side and
renewable energy initiatives. This analysis shall include:
(i) the impact of demand response programs and
energy efficiency programs, both current and
projected; for small multi-jurisdictional utilities,
the impact of demand response and energy efficiency
programs approved pursuant to Section 8-408 of this
Act, both current and projected; and
(ii) supply side needs that are projected to be

HB4687 - 299 - LRB103 36052 LNS 66139 b
offset by purchases of renewable energy resources, if
any.
(3) A plan for meeting the expected load requirements
that will not be met through preexisting contracts. This
plan shall include:
(i) definitions of the different Illinois retail
customer classes for which supply is being purchased;
(ii) the proposed mix of demand-response products
for which contracts will be executed during the next
year. For small multi-jurisdictional electric
utilities that on December 31, 2005 served fewer than
100,000 customers in Illinois, these shall be defined
as demand-response products offered in an energy
efficiency plan approved pursuant to Section 8-408 of
this Act. The cost-effective demand-response measures
shall be procured whenever the cost is lower than
procuring comparable capacity products, provided that
such products shall:
(A) be procured by a demand-response provider
from those retail customers included in the plan's
electric supply service requirements;
(B) at least satisfy the demand-response
requirements of the regional transmission
organization market in which the utility's service
territory is located, including, but not limited
to, any applicable capacity or dispatch

HB4687 - 300 - LRB103 36052 LNS 66139 b
requirements;
(C) provide for customers' participation in
the stream of benefits produced by the
demand-response products;
(D) provide for reimbursement by the
demand-response provider of the utility for any
costs incurred as a result of the failure of the
supplier of such products to perform its
obligations thereunder; and
(E) meet the same credit requirements as apply
to suppliers of capacity, in the applicable
regional transmission organization market;
(iii) monthly forecasted system supply
requirements, including expected minimum, maximum, and
average values for the planning period;
(iv) the proposed mix and selection of standard
wholesale products for which contracts will be
executed during the next year, separately or in
combination, to meet that portion of its load
requirements not met through pre-existing contracts,
including but not limited to monthly 5 x 16 peak period
block energy, monthly off-peak wrap energy, monthly 7
x 24 energy, annual 5 x 16 energy, other standardized
energy or capacity products designed to provide
eligible retail customer benefits from commercially
deployed advanced technologies including but not

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limited to high voltage direct current converter
stations, as such term is defined in Section 1-10 of
the Illinois Power Agency Act, whether or not such
product is currently available in wholesale markets,
annual off-peak wrap energy, annual 7 x 24 energy,
monthly capacity, annual capacity, peak load capacity
obligations, capacity purchase plan, and ancillary
services;
(v) proposed term structures for each wholesale
product type included in the proposed procurement plan
portfolio of products; and
(vi) an assessment of the price risk, load
uncertainty, and other factors that are associated
with the proposed procurement plan; this assessment,
to the extent possible, shall include an analysis of
the following factors: contract terms, time frames for
securing products or services, fuel costs, weather
patterns, transmission costs, market conditions, and
the governmental regulatory environment; the proposed
procurement plan shall also identify alternatives for
those portfolio measures that are identified as having
significant price risk and mitigation in the form of
additional retail customer and ratepayer price,
reliability, and environmental benefits from
standardized energy products delivered from
commercially deployed advanced technologies,

HB4687 - 302 - LRB103 36052 LNS 66139 b
including, but not limited to, high voltage direct
current converter stations, as such term is defined in
Section 1-10 of the Illinois Power Agency Act, whether
or not such product is currently available in
wholesale markets.
(4) Proposed procedures for balancing loads. The
procurement plan shall include, for load requirements
included in the procurement plan, the process for (i)
hourly balancing of supply and demand and (ii) the
criteria for portfolio re-balancing in the event of
significant shifts in load.
(5) Long-Term Renewable Resources Procurement Plan.
The Agency shall prepare a long-term renewable resources
procurement plan for the procurement of renewable energy
credits under Sections 1-56 and 1-75 of the Illinois Power
Agency Act for delivery beginning in the 2017 delivery
year.
(i) The initial long-term renewable resources
procurement plan and all subsequent revisions shall be
subject to review and approval by the Commission. For
the purposes of this Section, "delivery year" has the
same meaning as in Section 1-10 of the Illinois Power
Agency Act. For purposes of this Section, "Agency"
shall mean the Illinois Power Agency.
(ii) The long-term renewable resources planning
process shall be conducted as follows:

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(A) Electric utilities shall provide a range
of load forecasts to the Illinois Power Agency
within 45 days of the Agency's request for
forecasts, which request shall specify the length
and conditions for the forecasts including, but
not limited to, the quantity of distributed
generation expected to be interconnected for each
year.
(B) The Agency shall publish for comment the
initial long-term renewable resources procurement
plan no later than 120 days after the effective
date of this amendatory Act of the 99th General
Assembly and shall review, and may revise, the
plan at least every 2 years thereafter. To the
extent practicable, the Agency shall review and
propose any revisions to the long-term renewable
energy resources procurement plan in conjunction
with the Agency's other planning and approval
processes conducted under this Section. The
initial long-term renewable resources procurement
plan shall:
(aa) Identify the procurement programs and
competitive procurement events consistent with
the applicable requirements of the Illinois
Power Agency Act and shall be designed to
achieve the goals set forth in subsection (c)

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of Section 1-75 of that Act.
(bb) Include a schedule for procurements
for renewable energy credits from
utility-scale wind projects, utility-scale
solar projects, and brownfield site
photovoltaic projects consistent with
subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois
Power Agency Act.
(cc) Identify the process whereby the
Agency will submit to the Commission for
review and approval the proposed contracts to
implement the programs required by such plan.
Copies of the initial long-term renewable
resources procurement plan and all subsequent
revisions shall be posted and made publicly
available on the Agency's and Commission's
websites, and copies shall also be provided to
each affected electric utility. An affected
utility and other interested parties shall have 45
days following the date of posting to provide
comment to the Agency on the initial long-term
renewable resources procurement plan and all
subsequent revisions. All comments submitted to
the Agency shall be specific, supported by data or
other detailed analyses, and, if objecting to all

HB4687 - 305 - LRB103 36052 LNS 66139 b
or a portion of the procurement plan, accompanied
by specific alternative wording or proposals. All
comments shall be posted on the Agency's and
Commission's websites. During this 45-day comment
period, the Agency shall hold at least one public
hearing within each utility's service area that is
subject to the requirements of this paragraph (5)
for the purpose of receiving public comment.
Within 21 days following the end of the 45-day
review period, the Agency may revise the long-term
renewable resources procurement plan based on the
comments received and shall file the plan with the
Commission for review and approval.
(C) Within 14 days after the filing of the
initial long-term renewable resources procurement
plan or any subsequent revisions, any person
objecting to the plan may file an objection with
the Commission. Within 21 days after the filing of
the plan, the Commission shall determine whether a
hearing is necessary. The Commission shall enter
its order confirming or modifying the initial
long-term renewable resources procurement plan or
any subsequent revisions within 120 days after the
filing of the plan by the Illinois Power Agency.
(D) The Commission shall approve the initial
long-term renewable resources procurement plan and

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any subsequent revisions, including expressly the
forecast used in the plan and taking into account
that funding will be limited to the amount of
revenues actually collected by the utilities, if
the Commission determines that the plan will
reasonably and prudently accomplish the
requirements of Section 1-56 and subsection (c) of
Section 1-75 of the Illinois Power Agency Act. The
Commission shall also approve the process for the
submission, review, and approval of the proposed
contracts to procure renewable energy credits or
implement the programs authorized by the
Commission pursuant to a long-term renewable
resources procurement plan approved under this
Section.
In approving any long-term renewable resources
procurement plan after the effective date of this
amendatory Act of the 102nd General Assembly, the
Commission shall approve or modify the Agency's
proposal for minimum equity standards pursuant to
subsection (c-10) of Section 1-75 of the Illinois
Power Agency Act. The Commission shall consider
any analysis performed by the Agency in developing
its proposal, including past performance,
availability of equity eligible contractors, and
availability of equity eligible persons at the

HB4687 - 307 - LRB103 36052 LNS 66139 b
time the long-term renewable resources procurement
plan is approved.
(iii) The Agency or third parties contracted by
the Agency shall implement all programs authorized by
the Commission in an approved long-term renewable
resources procurement plan without further review and
approval by the Commission. Third parties shall not
begin implementing any programs or receive any payment
under this Section until the Commission has approved
the contract or contracts under the process authorized
by the Commission in item (D) of subparagraph (ii) of
paragraph (5) of this subsection (b) and the third
party and the Agency or utility, as applicable, have
executed the contract. For those renewable energy
credits subject to procurement through a competitive
bid process under the plan or under the initial
forward procurements for wind and solar resources
described in subparagraph (G) of paragraph (1) of
subsection (c) of Section 1-75 of the Illinois Power
Agency Act, the Agency shall follow the procurement
process specified in the provisions relating to
electricity procurement in subsections (e) through (i)
of this Section.
(iv) An electric utility shall recover its costs
associated with the procurement of renewable energy
credits under this Section and pursuant to subsection

HB4687 - 308 - LRB103 36052 LNS 66139 b
(c-5) of Section 1-75 of the Illinois Power Agency Act
through an automatic adjustment clause tariff under
subsection (k) or a tariff pursuant to subsection
(i-5), as applicable, of Section 16-108 of this Act. A
utility shall not be required to advance any payment
or pay any amounts under this Section that exceed the
actual amount of revenues collected by the utility
under paragraph (6) of subsection (c) of Section 1-75
of the Illinois Power Agency Act, subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act, and
subsection (k) or subsection (i-5), as applicable, of
Section 16-108 of this Act, and contracts executed
under this Section shall expressly incorporate this
limitation.
(v) For the public interest, safety, and welfare,
the Agency and the Commission may adopt rules to carry
out the provisions of this Section on an emergency
basis immediately following the effective date of this
amendatory Act of the 99th General Assembly.
(vi) On or before July 1 of each year, the
Commission shall hold an informal hearing for the
purpose of receiving comments on the prior year's
procurement process and any recommendations for
change.
(b-5) (Blank). An electric utility that as of January 1,
2019 served more than 300,000 retail customers in this State

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shall purchase renewable energy credits from new renewable
energy facilities constructed at or adjacent to the sites of
coal-fueled electric generating facilities in this State in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act. Except as expressly provided in
this Section, the plans and procedures for such procurements
shall not be included in the procurement plans provided for in
this Section, but rather shall be conducted and implemented
solely in accordance with subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act.
(c) The provisions of this subsection (c) shall not apply
to procurements conducted pursuant to subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act. However, the
Agency may retain a procurement administrator to assist the
Agency in planning and carrying out the procurement events and
implementing the other requirements specified in such
subsection (c-5) of Section 1-75 of the Illinois Power Agency
Act, with the costs incurred by the Agency for the procurement
administrator to be recovered through fees charged to
applicants for selection to sell and deliver renewable energy
credits to electric utilities pursuant to subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act. The procurement
process set forth in Section 1-75 of the Illinois Power Agency
Act and subsection (e) of this Section shall be administered
by a procurement administrator and monitored by a procurement
monitor.

HB4687 - 310 - LRB103 36052 LNS 66139 b
(1) The procurement administrator shall:
(i) design the final procurement process in
accordance with Section 1-75 of the Illinois Power
Agency Act and subsection (e) of this Section
following Commission approval of the procurement plan;
(ii) develop benchmarks in accordance with
subsection (e)(3) to be used to evaluate bids; these
benchmarks shall be submitted to the Commission for
review and approval on a confidential basis prior to
the procurement event;
(iii) serve as the interface between the electric
utility and suppliers;
(iv) manage the bidder pre-qualification and
registration process;
(v) obtain the electric utilities' agreement to
the final form of all supply contracts and credit
collateral agreements;
(vi) administer the request for proposals process;
(vii) have the discretion to negotiate to
determine whether bidders are willing to lower the
price of bids that meet the benchmarks approved by the
Commission; any post-bid negotiations with bidders
shall be limited to price only and shall be completed
within 24 hours after opening the sealed bids and
shall be conducted in a fair and unbiased manner; in
conducting the negotiations, there shall be no

HB4687 - 311 - LRB103 36052 LNS 66139 b
disclosure of any information derived from proposals
submitted by competing bidders; if information is
disclosed to any bidder, it shall be provided to all
competing bidders;
(viii) maintain confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(ix) submit a confidential report to the
Commission recommending acceptance or rejection of
bids;
(x) notify the utility of contract counterparties
and contract specifics; and
(xi) administer related contingency procurement
events.
(2) The procurement monitor, who shall be retained by
the Commission, shall:
(i) monitor interactions among the procurement
administrator, suppliers, and utility;
(ii) monitor and report to the Commission on the
progress of the procurement process;
(iii) provide an independent confidential report
to the Commission regarding the results of the
procurement event;
(iv) assess compliance with the procurement plans
approved by the Commission for each utility that on
December 31, 2005 provided electric service to at

HB4687 - 312 - LRB103 36052 LNS 66139 b
least 100,000 customers in Illinois and for each small
multi-jurisdictional utility that on December 31, 2005
served less than 100,000 customers in Illinois;
(v) preserve the confidentiality of supplier and
bidding information in a manner consistent with all
applicable laws, rules, regulations, and tariffs;
(vi) provide expert advice to the Commission and
consult with the procurement administrator regarding
issues related to procurement process design, rules,
protocols, and policy-related matters; and
(vii) consult with the procurement administrator
regarding the development and use of benchmark
criteria, standard form contracts, credit policies,
and bid documents.
(d) Except as provided in subsection (j), the planning
process shall be conducted as follows:
(1) Beginning in 2008, each Illinois utility procuring
power pursuant to this Section shall annually provide a
range of load forecasts to the Illinois Power Agency by
July 15 of each year, or such other date as may be required
by the Commission or Agency. The load forecasts shall
cover the 5-year procurement planning period for the next
procurement plan and shall include hourly data
representing a high-load, low-load, and expected-load
scenario for the load of those retail customers included
in the plan's electric supply service requirements. The

HB4687 - 313 - LRB103 36052 LNS 66139 b
utility shall provide supporting data and assumptions for
each of the scenarios.
(2) Beginning in 2008, the Illinois Power Agency shall
prepare a procurement plan by August 15th of each year, or
such other date as may be required by the Commission. The
procurement plan shall identify the portfolio of
demand-response and power and energy products to be
procured. Cost-effective demand-response measures shall be
procured as set forth in item (iii) of subsection (b) of
this Section. Copies of the procurement plan shall be
posted and made publicly available on the Agency's and
Commission's websites, and copies shall also be provided
to each affected electric utility. An affected utility
shall have 30 days following the date of posting to
provide comment to the Agency on the procurement plan.
Other interested entities also may comment on the
procurement plan. All comments submitted to the Agency
shall be specific, supported by data or other detailed
analyses, and, if objecting to all or a portion of the
procurement plan, accompanied by specific alternative
wording or proposals. All comments shall be posted on the
Agency's and Commission's websites. During this 30-day
comment period, the Agency shall hold at least one public
hearing within each utility's service area for the purpose
of receiving public comment on the procurement plan.
Within 14 days following the end of the 30-day review

HB4687 - 314 - LRB103 36052 LNS 66139 b
period, the Agency shall revise the procurement plan as
necessary based on the comments received and file the
procurement plan with the Commission and post the
procurement plan on the websites.
(3) Within 5 days after the filing of the procurement
plan, any person objecting to the procurement plan shall
file an objection with the Commission. Within 10 days
after the filing, the Commission shall determine whether a
hearing is necessary. The Commission shall enter its order
confirming or modifying the procurement plan within 90
days after the filing of the procurement plan by the
Illinois Power Agency.
(4) The Commission shall approve the procurement plan,
including expressly the forecast used in the procurement
plan, if the Commission determines that it will ensure
adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account any benefits of
price stability.
(4.5) (Blank). The Commission shall review the
Agency's recommendations for the selection of applicants
to enter into long-term contracts for the sale and
delivery of renewable energy credits from new renewable
energy facilities to be constructed at or adjacent to the
sites of coal-fueled electric generating facilities in
this State in accordance with the provisions of subsection

HB4687 - 315 - LRB103 36052 LNS 66139 b
(c-5) of Section 1-75 of the Illinois Power Agency Act,
and shall approve the Agency's recommendations if the
Commission determines that the applicants recommended by
the Agency for selection, the proposed new renewable
energy facilities to be constructed, the amounts of
renewable energy credits to be delivered pursuant to the
contracts, and the other terms of the contracts, are
consistent with the requirements of subsection (c-5) of
Section 1-75 of the Illinois Power Agency Act.
(e) The procurement process shall include each of the
following components:
(1) Solicitation, pre-qualification, and registration
of bidders. The procurement administrator shall
disseminate information to potential bidders to promote a
procurement event, notify potential bidders that the
procurement administrator may enter into a post-bid price
negotiation with bidders that meet the applicable
benchmarks, provide supply requirements, and otherwise
explain the competitive procurement process. In addition
to such other publication as the procurement administrator
determines is appropriate, this information shall be
posted on the Illinois Power Agency's and the Commission's
websites. The procurement administrator shall also
administer the prequalification process, including
evaluation of credit worthiness, compliance with
procurement rules, and agreement to the standard form

HB4687 - 316 - LRB103 36052 LNS 66139 b
contract developed pursuant to paragraph (2) of this
subsection (e). The procurement administrator shall then
identify and register bidders to participate in the
procurement event.
(2) Standard contract forms and credit terms and
instruments. The procurement administrator, in
consultation with the utilities, the Commission, and other
interested parties and subject to Commission oversight,
shall develop and provide standard contract forms for the
supplier contracts that meet generally accepted industry
practices. Standard credit terms and instruments that meet
generally accepted industry practices shall be similarly
developed. The procurement administrator shall make
available to the Commission all written comments it
receives on the contract forms, credit terms, or
instruments. If the procurement administrator cannot reach
agreement with the applicable electric utility as to the
contract terms and conditions, the procurement
administrator must notify the Commission of any disputed
terms and the Commission shall resolve the dispute. The
terms of the contracts shall not be subject to negotiation
by winning bidders, and the bidders must agree to the
terms of the contract in advance so that winning bids are
selected solely on the basis of price.
(3) Establishment of a market-based price benchmark.
As part of the development of the procurement process, the

HB4687 - 317 - LRB103 36052 LNS 66139 b
procurement administrator, in consultation with the
Commission staff, Agency staff, and the procurement
monitor, shall establish benchmarks for evaluating the
final prices in the contracts for each of the products
that will be procured through the procurement process. The
benchmarks shall be based on price data for similar
products for the same delivery period and same delivery
hub, or other delivery hubs after adjusting for that
difference. The price benchmarks may also be adjusted to
take into account differences between the information
reflected in the underlying data sources and the specific
products and procurement process being used to procure
power for the Illinois utilities. The benchmarks shall be
confidential but shall be provided to, and will be subject
to Commission review and approval, prior to a procurement
event.
(4) Request for proposals competitive procurement
process. The procurement administrator shall design and
issue a request for proposals to supply electricity in
accordance with each utility's procurement plan, as
approved by the Commission. The request for proposals
shall set forth a procedure for sealed, binding commitment
bidding with pay-as-bid settlement, and provision for
selection of bids on the basis of price.
(5) A plan for implementing contingencies in the event
of supplier default or failure of the procurement process

HB4687 - 318 - LRB103 36052 LNS 66139 b
to fully meet the expected load requirement due to
insufficient supplier participation, Commission rejection
of results, or any other cause.
(i) Event of supplier default: In the event of
supplier default, the utility shall review the
contract of the defaulting supplier to determine if
the amount of supply is 200 megawatts or greater, and
if there are more than 60 days remaining of the
contract term. If both of these conditions are met,
and the default results in termination of the
contract, the utility shall immediately notify the
Illinois Power Agency that a request for proposals
must be issued to procure replacement power, and the
procurement administrator shall run an additional
procurement event. If the contracted supply of the
defaulting supplier is less than 200 megawatts or
there are less than 60 days remaining of the contract
term, the utility shall procure power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both, for the
duration of the contract term to replace the
contracted supply; provided, however, that if a needed
product is not available through the regional
transmission organization market it shall be purchased
from the wholesale market.

HB4687 - 319 - LRB103 36052 LNS 66139 b
(ii) Failure of the procurement process to fully
meet the expected load requirement: If the procurement
process fails to fully meet the expected load
requirement due to insufficient supplier participation
or due to a Commission rejection of the procurement
results, the procurement administrator, the
procurement monitor, and the Commission staff shall
meet within 10 days to analyze potential causes of low
supplier interest or causes for the Commission
decision. If changes are identified that would likely
result in increased supplier participation, or that
would address concerns causing the Commission to
reject the results of the prior procurement event, the
procurement administrator may implement those changes
and rerun the request for proposals process according
to a schedule determined by those parties and
consistent with Section 1-75 of the Illinois Power
Agency Act and this subsection. In any event, a new
request for proposals process shall be implemented by
the procurement administrator within 90 days after the
determination that the procurement process has failed
to fully meet the expected load requirement.
(iii) In all cases where there is insufficient
supply provided under contracts awarded through the
procurement process to fully meet the electric
utility's load requirement, the utility shall meet the

HB4687 - 320 - LRB103 36052 LNS 66139 b
load requirement by procuring power and energy from
the applicable regional transmission organization
market, including ancillary services, capacity, and
day-ahead or real time energy, or both; provided,
however, that if a needed product is not available
through the regional transmission organization market
it shall be purchased from the wholesale market.
(6) The procurement processes described in this
subsection and in subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act are exempt from the requirements
of the Illinois Procurement Code, pursuant to Section
20-10 of that Code.
(f) Within 2 business days after opening the sealed bids,
the procurement administrator shall submit a confidential
report to the Commission. The report shall contain the results
of the bidding for each of the products along with the
procurement administrator's recommendation for the acceptance
and rejection of bids based on the price benchmark criteria
and other factors observed in the process. The procurement
monitor also shall submit a confidential report to the
Commission within 2 business days after opening the sealed
bids. The report shall contain the procurement monitor's
assessment of bidder behavior in the process as well as an
assessment of the procurement administrator's compliance with
the procurement process and rules. The Commission shall review
the confidential reports submitted by the procurement

HB4687 - 321 - LRB103 36052 LNS 66139 b
administrator and procurement monitor, and shall accept or
reject the recommendations of the procurement administrator
within 2 business days after receipt of the reports.
(g) Within 3 business days after the Commission decision
approving the results of a procurement event, the utility
shall enter into binding contractual arrangements with the
winning suppliers using the standard form contracts; except
that the utility shall not be required either directly or
indirectly to execute the contracts if a tariff that is
consistent with subsection (l) of this Section has not been
approved and placed into effect for that utility.
(h) The names of the successful bidders and the
load-weighted average of the winning bid prices for each
contract type and for each contract term shall be made
available to the public at the time of Commission approval of a
procurement event. The Commission, the procurement monitor,
the procurement administrator, the Illinois Power Agency, and
all participants in the procurement process shall maintain the
confidentiality of all other supplier and bidding information
in a manner consistent with all applicable laws, rules,
regulations, and tariffs. Confidential information, including
the confidential reports submitted by the procurement
administrator and procurement monitor pursuant to subsection
(f) of this Section, shall not be made publicly available and
shall not be discoverable by any party in any proceeding,
absent a compelling demonstration of need, nor shall those

HB4687 - 322 - LRB103 36052 LNS 66139 b
reports be admissible in any proceeding other than one for law
enforcement purposes. For the procurement of standard
wholesale products, the names of the successful bidders and
the load weighted average of the winning bid prices for each
contract type and for each contract term shall be made
available to the public at the time of Commission approval of a
procurement event. For procurements conducted to meet the
requirements of subsection (b) of Section 1-56 or subsection
(c) of Section 1-75 of the Illinois Power Agency Act governed
by the provisions of this Section, the address and nameplate
capacity of the new renewable energy generating facility
proposed by a winning bidder shall also be made available to
the public at the time of Commission approval of a procurement
event, along with the business address and contact information
for any winning bidder. An estimate or approximation of the
nameplate capacity of the new renewable energy generating
facility may be disclosed if necessary to protect the
confidentiality of individual bid prices.
The Commission, the procurement monitor, the procurement
administrator, the Illinois Power Agency, and all participants
in the procurement process shall maintain the confidentiality
of all other supplier and bidding information in a manner
consistent with all applicable laws, rules, regulations, and
tariffs. Confidential information, including the confidential
reports submitted by the procurement administrator and
procurement monitor pursuant to subsection (f) of this

HB4687 - 323 - LRB103 36052 LNS 66139 b
Section, shall not be made publicly available and shall not be
discoverable by any party in any proceeding, absent a
compelling demonstration of need, nor shall those reports be
admissible in any proceeding other than one for law
enforcement purposes.
(i) Within 2 business days after a Commission decision
approving the results of a procurement event or such other
date as may be required by the Commission from time to time,
the utility shall file for informational purposes with the
Commission its actual or estimated retail supply charges, as
applicable, by customer supply group reflecting the costs
associated with the procurement and computed in accordance
with the tariffs filed pursuant to subsection (l) of this
Section and approved by the Commission.
(j) Within 60 days following August 28, 2007 (the
effective date of Public Act 95-481), each electric utility
that on December 31, 2005 provided electric service to at
least 100,000 customers in Illinois shall prepare and file
with the Commission an initial procurement plan, which shall
conform in all material respects to the requirements of the
procurement plan set forth in subsection (b); provided,
however, that the Illinois Power Agency Act shall not apply to
the initial procurement plan prepared pursuant to this
subsection. The initial procurement plan shall identify the
portfolio of power and energy products to be procured and
delivered for the period June 2008 through May 2009, and shall

HB4687 - 324 - LRB103 36052 LNS 66139 b
identify the proposed procurement administrator, who shall
have the same experience and expertise as is required of a
procurement administrator hired pursuant to Section 1-75 of
the Illinois Power Agency Act. Copies of the procurement plan
shall be posted and made publicly available on the
Commission's website. The initial procurement plan may include
contracts for renewable resources that extend beyond May 2009.
(i) Within 14 days following filing of the initial
procurement plan, any person may file a detailed objection
with the Commission contesting the procurement plan
submitted by the electric utility. All objections to the
electric utility's plan shall be specific, supported by
data or other detailed analyses. The electric utility may
file a response to any objections to its procurement plan
within 7 days after the date objections are due to be
filed. Within 7 days after the date the utility's response
is due, the Commission shall determine whether a hearing
is necessary. If it determines that a hearing is
necessary, it shall require the hearing to be completed
and issue an order on the procurement plan within 60 days
after the filing of the procurement plan by the electric
utility.
(ii) The order shall approve or modify the procurement
plan, approve an independent procurement administrator,
and approve or modify the electric utility's tariffs that
are proposed with the initial procurement plan. The

HB4687 - 325 - LRB103 36052 LNS 66139 b
Commission shall approve the procurement plan if the
Commission determines that it will ensure adequate,
reliable, affordable, efficient, and environmentally
sustainable electric service at the lowest total cost over
time, taking into account any benefits of price stability.
(k) (Blank).
(k-5) (Blank).
(l) An electric utility shall recover its costs incurred
under this Section and subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, including, but not limited to, the
costs of procuring power and energy demand-response resources
under this Section and its costs for purchasing renewable
energy credits pursuant to subsection (c-5) of Section 1-75 of
the Illinois Power Agency Act. The utility shall file with the
initial procurement plan its proposed tariffs through which
its costs of procuring power that are incurred pursuant to a
Commission-approved procurement plan and those other costs
identified in this subsection (l), will be recovered. The
tariffs shall include a formula rate or charge designed to
pass through both the costs incurred by the utility in
procuring a supply of electric power and energy for the
applicable customer classes with no mark-up or return on the
price paid by the utility for that supply, plus any just and
reasonable costs that the utility incurs in arranging and
providing for the supply of electric power and energy. The
formula rate or charge shall also contain provisions that

HB4687 - 326 - LRB103 36052 LNS 66139 b
ensure that its application does not result in over or under
recovery due to changes in customer usage and demand patterns,
and that provide for the correction, on at least an annual
basis, of any accounting errors that may occur. A utility
shall recover through the tariff all reasonable costs incurred
to implement or comply with any procurement plan that is
developed and put into effect pursuant to Section 1-75 of the
Illinois Power Agency Act and this Section, and for the
procurement of renewable energy credits pursuant to subsection
(c-5) of Section 1-75 of the Illinois Power Agency Act,
including any fees assessed by the Illinois Power Agency,
costs associated with load balancing, and contingency plan
costs. The electric utility shall also recover its full costs
of procuring electric supply for which it contracted before
the effective date of this Section in conjunction with the
provision of full requirements service under fixed-price
bundled service tariffs subsequent to December 31, 2006. All
such costs shall be deemed to have been prudently incurred.
The pass-through tariffs that are filed and approved pursuant
to this Section shall not be subject to review under, or in any
way limited by, Section 16-111(i) of this Act. All of the costs
incurred by the electric utility associated with the purchase
of zero emission credits in accordance with subsection (d-5)
of Section 1-75 of the Illinois Power Agency Act, all costs
incurred by the electric utility associated with the purchase
of carbon mitigation credits in accordance with subsection

HB4687 - 327 - LRB103 36052 LNS 66139 b
(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
beginning June 1, 2017, all of the costs incurred by the
electric utility associated with the purchase of renewable
energy resources in accordance with Sections 1-56 and 1-75 of
the Illinois Power Agency Act, and all of the costs incurred by
the electric utility in purchasing renewable energy credits in
accordance with subsection (c-5) of Section 1-75 of the
Illinois Power Agency Act, shall be recovered through the
electric utility's tariffed charges applicable to all of its
retail customers, as specified in subsection (k) or subsection
(i-5), as applicable, of Section 16-108 of this Act, and shall
not be recovered through the electric utility's tariffed
charges for electric power and energy supply to its eligible
retail customers.
(m) The Commission has the authority to adopt rules to
carry out the provisions of this Section. For the public
interest, safety, and welfare, the Commission also has
authority to adopt rules to carry out the provisions of this
Section on an emergency basis immediately following August 28,
2007 (the effective date of Public Act 95-481).
(n) Notwithstanding any other provision of this Act, any
affiliated electric utilities that submit a single procurement
plan covering their combined needs may procure for those
combined needs in conjunction with that plan, and may enter
jointly into power supply contracts, purchases, and other
procurement arrangements, and allocate capacity and energy and

HB4687 - 328 - LRB103 36052 LNS 66139 b
cost responsibility therefor among themselves in proportion to
their requirements.
(o) On or before June 1 of each year, the Commission shall
hold an informal hearing for the purpose of receiving comments
on the prior year's procurement process and any
recommendations for change.
(p) An electric utility subject to this Section may
propose to invest, lease, own, or operate an electric
generation facility as part of its procurement plan, provided
the utility demonstrates that such facility is the least-cost
option to provide electric service to those retail customers
included in the plan's electric supply service requirements.
If the facility is shown to be the least-cost option and is
included in a procurement plan prepared in accordance with
Section 1-75 of the Illinois Power Agency Act and this
Section, then the electric utility shall make a filing
pursuant to Section 8-406 of this Act, and may request of the
Commission any statutory relief required thereunder. If the
Commission grants all of the necessary approvals for the
proposed facility, such supply shall thereafter be considered
as a pre-existing contract under subsection (b) of this
Section. The Commission shall in any order approving a
proposal under this subsection specify how the utility will
recover the prudently incurred costs of investing in, leasing,
owning, or operating such generation facility through just and
reasonable rates charged to those retail customers included in

HB4687 - 329 - LRB103 36052 LNS 66139 b
the plan's electric supply service requirements. Cost recovery
for facilities included in the utility's procurement plan
pursuant to this subsection shall not be subject to review
under or in any way limited by the provisions of Section
16-111(i) of this Act. Nothing in this Section is intended to
prohibit a utility from filing for a fuel adjustment clause as
is otherwise permitted under Section 9-220 of this Act.
(q) If the Illinois Power Agency filed with the
Commission, under Section 16-111.5 of this Act, its proposed
procurement plan for the period commencing June 1, 2017, and
the Commission has not yet entered its final order approving
the plan on or before the effective date of this amendatory Act
of the 99th General Assembly, then the Illinois Power Agency
shall file a notice of withdrawal with the Commission, after
the effective date of this amendatory Act of the 99th General
Assembly, to withdraw the proposed procurement of renewable
energy resources to be approved under the plan, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices using funds previously
collected from electric utilities' retail customers that take
service pursuant to electric utilities' hourly pricing tariff
or tariffs and, for an electric utility that serves less than
100,000 retail customers in the State, other than the
procurement of renewable energy credits from distributed
renewable energy generation devices. Upon receipt of the
notice, the Commission shall enter an order that approves the

HB4687 - 330 - LRB103 36052 LNS 66139 b
withdrawal of the proposed procurement of renewable energy
resources from the plan. The initially proposed procurement of
renewable energy resources shall not be approved or be the
subject of any further hearing, investigation, proceeding, or
order of any kind.
This amendatory Act of the 99th General Assembly preempts
and supersedes any order entered by the Commission that
approved the Illinois Power Agency's procurement plan for the
period commencing June 1, 2017, to the extent it is
inconsistent with the provisions of this amendatory Act of the
99th General Assembly. To the extent any previously entered
order approved the procurement of renewable energy resources,
the portion of that order approving the procurement shall be
void, other than the procurement of renewable energy credits
from distributed renewable energy generation devices using
funds previously collected from electric utilities' retail
customers that take service under electric utilities' hourly
pricing tariff or tariffs and, for an electric utility that
serves less than 100,000 retail customers in the State, other
than the procurement of renewable energy credits for
distributed renewable energy generation devices.
(Source: P.A. 102-662, eff. 9-15-21.)
Section 30. The Environmental Protection Act is amended by
changing Section 9.15 as follows:

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(415 ILCS 5/9.15)
Sec. 9.15. Greenhouse gases.
(a) An air pollution construction permit shall not be
required due to emissions of greenhouse gases if the
equipment, site, or source is not subject to regulation, as
defined by 40 CFR 52.21, as now or hereafter amended, for
greenhouse gases. This exemption does or is otherwise not
addressed in this Section or by the Board in regulations for
greenhouse gases. These exemptions do not relieve an owner or
operator from the obligation to comply with other applicable
rules or regulations.
(b) An air pollution operating permit shall not be
required due to emissions of greenhouse gases if the
equipment, site, or source is not subject to regulation, as
defined by Section 39.5 of this Act, for greenhouse gases.
This exemption does or is otherwise not addressed in this
Section or by the Board in regulations for greenhouse gases.
These exemptions do not relieve an owner or operator from the
obligation to comply with other applicable rules or
regulations.
(c) Notwithstanding any provision to the contrary in this
Section, an air pollution construction or operating permit
shall not be required due to emissions of greenhouse gases if
any of the following events occur: (Blank).
(1) enactment of federal legislation depriving the
Administrator of the USEPA of authority to regulate

HB4687 - 332 - LRB103 36052 LNS 66139 b
greenhouse gases under the Clean Air Act;
(2) the issuance of any opinion, ruling, judgment,
order, or decree by a federal court depriving the
Administrator of the USEPA of authority to regulate
greenhouse gases under the Clean Air Act; or
(3) action by the President of the United States or
the President's authorized agent, including the
Administrator of the USEPA, to repeal or withdraw the
Greenhouse Gas Tailoring Rule (75 Fed. Reg. 31514, June 3,
2010).
This subsection (c) does not relieve an owner or operator
from the obligation to comply with applicable rules or
regulations other than those relating to greenhouse gases.
(d) If any event listed in subsection (c) of this Section
occurs, permits issued after such event shall not impose
permit terms or conditions addressing greenhouse gases during
the effectiveness of any event listed in subsection (c).
(Blank).
(e) If an event listed in subsection (c) of this Section
occurs, any owner or operator with a permit that includes
terms or conditions addressing greenhouse gases may elect to
submit an application to the Agency to address a revision or
repeal of such terms or conditions. The Agency shall
expeditiously process such permit application in accordance
with applicable laws and regulations. (Blank).
(f) (Blank). As used in this Section:

HB4687 - 333 - LRB103 36052 LNS 66139 b
"Carbon dioxide emission" means the plant annual CO2 total
output emission as measured by the United States Environmental
Protection Agency in its Emissions & Generation Resource
Integrated Database (eGrid), or its successor.
"Carbon dioxide equivalent emissions" or "CO2e" means the
sum total of the mass amount of emissions in tons per year,
calculated by multiplying the mass amount of each of the 6
greenhouse gases specified in Section 3.207, in tons per year,
by its associated global warming potential as set forth in 40
CFR 98, subpart A, table A-1 or its successor, and then adding
them all together.
"Cogeneration" or "combined heat and power" refers to any
system that, either simultaneously or sequentially, produces
electricity and useful thermal energy from a single fuel
source.
"Copollutants" refers to the 6 criteria pollutants that
have been identified by the United States Environmental
Protection Agency pursuant to the Clean Air Act.
"Electric generating unit" or "EGU" means a fossil
fuel-fired stationary boiler, combustion turbine, or combined
cycle system that serves a generator that has a nameplate
capacity greater than 25 MWe and produces electricity for
sale.
"Environmental justice community" means the definition of
that term based on existing methodologies and findings, used
and as may be updated by the Illinois Power Agency and its

HB4687 - 334 - LRB103 36052 LNS 66139 b
program administrator in the Illinois Solar for All Program.
"Equity investment eligible community" or "eligible
community" means the geographic areas throughout Illinois that
would most benefit from equitable investments by the State
designed to combat discrimination and foster sustainable
economic growth. Specifically, eligible community means the
following areas:
(1) areas where residents have been historically
excluded from economic opportunities, including
opportunities in the energy sector, as defined as R3 areas
pursuant to Section 10-40 of the Cannabis Regulation and
Tax Act; and
(2) areas where residents have been historically
subject to disproportionate burdens of pollution,
including pollution from the energy sector, as established
by environmental justice communities as defined by the
Illinois Power Agency pursuant to the Illinois Power
Agency Act, excluding any racial or ethnic indicators.
"Equity investment eligible person" or "eligible person"
means the persons who would most benefit from equitable
investments by the State designed to combat discrimination and
foster sustainable economic growth. Specifically, eligible
person means the following people:
(1) persons whose primary residence is in an equity
investment eligible community;
(2) persons whose primary residence is in a

HB4687 - 335 - LRB103 36052 LNS 66139 b
municipality, or a county with a population under 100,000,
where the closure of an electric generating unit or mine
has been publicly announced or the electric generating
unit or mine is in the process of closing or closed within
the last 5 years;
(3) persons who are graduates of or currently enrolled
in the foster care system; or
(4) persons who were formerly incarcerated.
"Existing emissions" means:
(1) for CO2e, the total average tons-per-year of CO2e
emitted by the EGU or large GHG-emitting unit either in
the years 2018 through 2020 or, if the unit was not yet in
operation by January 1, 2018, in the first 3 full years of
that unit's operation; and
(2) for any copollutant, the total average
tons-per-year of that copollutant emitted by the EGU or
large GHG-emitting unit either in the years 2018 through
2020 or, if the unit was not yet in operation by January 1,
2018, in the first 3 full years of that unit's operation.
"Green hydrogen" means a power plant technology in which
an EGU creates electric power exclusively from electrolytic
hydrogen, in a manner that produces zero carbon and
copollutant emissions, using hydrogen fuel that is
electrolyzed using a 100% renewable zero carbon emission
energy source.
"Large greenhouse gas-emitting unit" or "large

HB4687 - 336 - LRB103 36052 LNS 66139 b
GHG-emitting unit" means a unit that is an electric generating
unit or other fossil fuel-fired unit that itself has a
nameplate capacity or serves a generator that has a nameplate
capacity greater than 25 MWe and that produces electricity,
including, but not limited to, coal-fired, coal-derived,
oil-fired, natural gas-fired, and cogeneration units.
"NOx emission rate" means the plant annual NOx total output
emission rate as measured by the United States Environmental
Protection Agency in its Emissions & Generation Resource
Integrated Database (eGrid), or its successor, in the most
recent year for which data is available.
"Public greenhouse gas-emitting units" or "public
GHG-emitting unit" means large greenhouse gas-emitting units,
including EGUs, that are wholly owned, directly or indirectly,
by one or more municipalities, municipal corporations, joint
municipal electric power agencies, electric cooperatives, or
other governmental or nonprofit entities, whether organized
and created under the laws of Illinois or another state.
"SO2 emission rate" means the "plant annual SO2 total
output emission rate" as measured by the United States
Environmental Protection Agency in its Emissions & Generation
Resource Integrated Database (eGrid), or its successor, in the
most recent year for which data is available.
(g) (Blank). All EGUs and large greenhouse gas-emitting
units that use coal or oil as a fuel and are not public
GHG-emitting units shall permanently reduce all CO2e and

HB4687 - 337 - LRB103 36052 LNS 66139 b
copollutant emissions to zero no later than January 1, 2030.
(h) (Blank). All EGUs and large greenhouse gas-emitting
units that use coal as a fuel and are public GHG-emitting units
shall permanently reduce CO2e emissions to zero no later than
December 31, 2045. Any source or plant with such units must
also reduce their CO2e emissions by 45% from existing
emissions by no later than January 1, 2035. If the emissions
reduction requirement is not achieved by December 31, 2035,
the plant shall retire one or more units or otherwise reduce
its CO2e emissions by 45% from existing emissions by June 30,
2038.
(i) (Blank). All EGUs and large greenhouse gas-emitting
units that use gas as a fuel and are not public GHG-emitting
units shall permanently reduce all CO2e and copollutant
emissions to zero, including through unit retirement or the
use of 100% green hydrogen or other similar technology that is
commercially proven to achieve zero carbon emissions,
according to the following:
(1) No later than January 1, 2030: all EGUs and large
greenhouse gas-emitting units that have a NOx emissions
rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
greater than 0.006 lb/MWh, and are located in or within 3
miles of an environmental justice community designated as
of January 1, 2021 or an equity investment eligible
community.
(2) No later than January 1, 2040: all EGUs and large

HB4687 - 338 - LRB103 36052 LNS 66139 b
greenhouse gas-emitting units that have a NOx emission
rate of greater than 0.12 lbs/MWh or a SO2 emission rate
greater than 0.006 lb/MWh, and are not located in or
within 3 miles of an environmental justice community
designated as of January 1, 2021 or an equity investment
eligible community. After January 1, 2035, each such EGU
and large greenhouse gas-emitting unit shall reduce its
CO2e emissions by at least 50% from its existing emissions
for CO2e, and shall be limited in operation to, on average,
6 hours or less per day, measured over a calendar year, and
shall not run for more than 24 consecutive hours except in
emergency conditions, as designated by a Regional
Transmission Organization or Independent System Operator.
(3) No later than January 1, 2035: all EGUs and large
greenhouse gas-emitting units that began operation prior
to the effective date of this amendatory Act of the 102nd
General Assembly and have a NOx emission rate of less than
or equal to 0.12 lb/MWh and a SO2 emission rate less than
or equal to 0.006 lb/MWh, and are located in or within 3
miles of an environmental justice community designated as
of January 1, 2021 or an equity investment eligible
community. Each such EGU and large greenhouse gas-emitting
unit shall reduce its CO2e emissions by at least 50% from
its existing emissions for CO2e no later than January 1,
2030.
(4) No later than January 1, 2040: All remaining EGUs

HB4687 - 339 - LRB103 36052 LNS 66139 b
and large greenhouse gas-emitting units that have a heat
rate greater than or equal to 7000 BTU/kWh. Each such EGU
and Large greenhouse gas-emitting unit shall reduce its
CO2e emissions by at least 50% from its existing emissions
for CO2e no later than January 1, 2035.
(5) No later than January 1, 2045: all remaining EGUs
and large greenhouse gas-emitting units.
(j) (Blank). All EGUs and large greenhouse gas-emitting
units that use gas as a fuel and are public GHG-emitting units
shall permanently reduce all CO2e and copollutant emissions to
zero, including through unit retirement or the use of 100%
green hydrogen or other similar technology that is
commercially proven to achieve zero carbon emissions by
January 1, 2045.
(k) (Blank). All EGUs and large greenhouse gas-emitting
units that utilize combined heat and power or cogeneration
technology shall permanently reduce all CO2e and copollutant
emissions to zero, including through unit retirement or the
use of 100% green hydrogen or other similar technology that is
commercially proven to achieve zero carbon emissions by
January 1, 2045.
(k-5) (Blank). No EGU or large greenhouse gas-emitting
unit that uses gas as a fuel and is not a public GHG-emitting
unit may emit, in any 12-month period, CO2e or copollutants in
excess of that unit's existing emissions for those pollutants.
(l) (Blank). Notwithstanding subsections (g) through

HB4687 - 340 - LRB103 36052 LNS 66139 b
(k-5), large GHG-emitting units including EGUs may temporarily
continue emitting CO2e and copollutants after any applicable
deadline specified in any of subsections (g) through (k-5) if
it has been determined, as described in paragraphs (1) and (2)
of this subsection, that ongoing operation of the EGU is
necessary to maintain power grid supply and reliability or
ongoing operation of large GHG-emitting unit that is not an
EGU is necessary to serve as an emergency backup to
operations. Up to and including the occurrence of an emission
reduction deadline under subsection (i), all EGUs and large
GHG-emitting units must comply with the following terms:
(1) if an EGU or large GHG-emitting unit that is a
participant in a regional transmission organization
intends to retire, it must submit documentation to the
appropriate regional transmission organization by the
appropriate deadline that meets all applicable regulatory
requirements necessary to obtain approval to permanently
cease operating the large GHG-emitting unit;
(2) if any EGU or large GHG-emitting unit that is a
participant in a regional transmission organization
receives notice that the regional transmission
organization has determined that continued operation of
the unit is required, the unit may continue operating
until the issue identified by the regional transmission
organization is resolved. The owner or operator of the
unit must cooperate with the regional transmission

HB4687 - 341 - LRB103 36052 LNS 66139 b
organization in resolving the issue and must reduce its
emissions to zero, consistent with the requirements under
subsection (g), (h), (i), (j), (k), or (k-5), as
applicable, as soon as practicable when the issue
identified by the regional transmission organization is
resolved; and
(3) any large GHG-emitting unit that is not a
participant in a regional transmission organization shall
be allowed to continue emitting CO2e and copollutants
after the zero-emission date specified in subsection (g),
(h), (i), (j), (k), or (k-5), as applicable, in the
capacity of an emergency backup unit if approved by the
Illinois Commerce Commission.
(m) (Blank). No variance, adjusted standard, or other
regulatory relief otherwise available in this Act may be
granted to the emissions reduction and elimination obligations
in this Section.
(n) (Blank). By June 30 of each year, beginning in 2025,
the Agency shall prepare and publish on its website a report
setting forth the actual greenhouse gas emissions from
individual units and the aggregate statewide emissions from
all units for the prior year.
(o) (Blank). Every 5 years beginning in 2025, the
Environmental Protection Agency, Illinois Power Agency, and
Illinois Commerce Commission shall jointly prepare, and
release publicly, a report to the General Assembly that

HB4687 - 342 - LRB103 36052 LNS 66139 b
examines the State's current progress toward its renewable
energy resource development goals, the status of CO2e and
copollutant emissions reductions, the current status and
progress toward developing and implementing green hydrogen
technologies, the current and projected status of electric
resource adequacy and reliability throughout the State for the
period beginning 5 years ahead, and proposed solutions for any
findings. The Environmental Protection Agency, Illinois Power
Agency, and Illinois Commerce Commission shall consult PJM
Interconnection, LLC and Midcontinent Independent System
Operator, Inc., or their respective successor organizations
regarding forecasted resource adequacy and reliability needs,
anticipated new generation interconnection, new transmission
development or upgrades, and any announced large GHG-emitting
unit closure dates and include this information in the report.
The report shall be released publicly by no later than
December 15 of the year it is prepared. If the Environmental
Protection Agency, Illinois Power Agency, and Illinois
Commerce Commission jointly conclude in the report that the
data from the regional grid operators, the pace of renewable
energy development, the pace of development of energy storage
and demand response utilization, transmission capacity, and
the CO2e and copollutant emissions reductions required by
subsection (i) or (k-5) reasonably demonstrate that a resource
adequacy shortfall will occur, including whether there will be
sufficient in-state capacity to meet the zonal requirements of

HB4687 - 343 - LRB103 36052 LNS 66139 b
MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
regional transmission organizations, or that the regional
transmission operators determine that a reliability violation
will occur during the time frame the study is evaluating, then
the Illinois Power Agency, in conjunction with the
Environmental Protection Agency shall develop a plan to reduce
or delay CO2e and copollutant emissions reductions
requirements only to the extent and for the duration necessary
to meet the resource adequacy and reliability needs of the
State, including allowing any plants whose emission reduction
deadline has been identified in the plan as creating a
reliability concern to continue operating, including operating
with reduced emissions or as emergency backup where
appropriate. The plan shall also consider the use of renewable
energy, energy storage, demand response, transmission
development, or other strategies to resolve the identified
resource adequacy shortfall or reliability violation.
(1) In developing the plan, the Environmental
Protection Agency and the Illinois Power Agency shall hold
at least one workshop open to, and accessible at a time and
place convenient to, the public and shall consider any
comments made by stakeholders or the public. Upon
development of the plan, copies of the plan shall be
posted and made publicly available on the Environmental
Protection Agency's, the Illinois Power Agency's, and the
Illinois Commerce Commission's websites. All interested

HB4687 - 344 - LRB103 36052 LNS 66139 b
parties shall have 60 days following the date of posting
to provide comment to the Environmental Protection Agency
and the Illinois Power Agency on the plan. All comments
submitted to the Environmental Protection Agency and the
Illinois Power Agency shall be encouraged to be specific,
supported by data or other detailed analyses, and, if
objecting to all or a portion of the plan, accompanied by
specific alternative wording or proposals. All comments
shall be posted on the Environmental Protection Agency's,
the Illinois Power Agency's, and the Illinois Commerce
Commission's websites. Within 30 days following the end of
the 60-day review period, the Environmental Protection
Agency and the Illinois Power Agency shall revise the plan
as necessary based on the comments received and file its
revised plan with the Illinois Commerce Commission for
approval.
(2) Within 60 days after the filing of the revised
plan at the Illinois Commerce Commission, any person
objecting to the plan shall file an objection with the
Illinois Commerce Commission. Within 30 days after the
expiration of the comment period, the Illinois Commerce
Commission shall determine whether an evidentiary hearing
is necessary. The Illinois Commerce Commission shall also
host 3 public hearings within 90 days after the plan is
filed. Following the evidentiary and public hearings, the
Illinois Commerce Commission shall enter its order

HB4687 - 345 - LRB103 36052 LNS 66139 b