Bill Text: IL HB5856 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to (i) conduct competitive solicitations to procure contracted energy storage credits sufficient to achieve certain energy storage standards, and (ii) request, review, and accept proposals, execute contracts, and procure energy storage credits. Requires the Agency to develop a storage procurement plan. Authorizes the Agency to develop and implement a firm energy resource procurement plan. Makes other changes. Amends the Public Utilities Act. Requires each electric utility to demonstrate sufficient resources devoted to interconnection. Requires the Illinois Commerce Commission to perform specified actions regarding interconnection within 90 days after the effective date of the amendatory Act. In a provision regarding virtual power plant programs, requires each electric utility serving more than 300,000 customers as of January 1, 2023 to propose an initial tariff within 60 days after the effective date of the amendatory Act. In a provision regarding peak remediation programs, requires each electric utility serving more than 300,000 retail customers as of January 1, 2023 to propose an initial tariff within 90 days after the effective date of the amendatory Act. Requires the Commission to establish a working group with relevant stakeholders to develop a stand-alone energy storage distribution deployment program. Provides that, beginning on June 1, 2024, the electric utility shall be entitled to recover through tariffed charges all of the costs associated with the purchase of energy storage credits to meet specified energy storage standards. Requires the Agency to prepare an energy storage resources procurement plan for the procurement of energy storage credits. Requires the Commission to establish an Office of Interconnection and Renewable Development, which shall (i) actively seek input from all interested parties and shall develop a thorough understanding and critical analyses of the tools and techniques used to promote development and remove barriers to development of the projects and devices, and (ii) monitor interconnection between electric utilities and applicants for interconnection and interconnection customers. Sets forth reporting requirements for the Office. Makes other changes. Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-11-06 - Added Chief Co-Sponsor Rep. Dave Vella [HB5856 Detail]
Download: Illinois-2023-HB5856-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Power Agency Act is amended by | |||||||||||||||||||
5 | changing Sections 1-5, 1-10, 1-20, and 1-75 and by adding | |||||||||||||||||||
6 | Sections 1-93 and 1-94 as follows:
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7 | (20 ILCS 3855/1-5) | |||||||||||||||||||
8 | Sec. 1-5. Legislative declarations and findings. The | |||||||||||||||||||
9 | General Assembly finds and declares: | |||||||||||||||||||
10 | (1) The health, welfare, and prosperity of all | |||||||||||||||||||
11 | Illinois residents require the provision of adequate, | |||||||||||||||||||
12 | reliable, affordable, efficient, and environmentally | |||||||||||||||||||
13 | sustainable electric service at the lowest total cost over | |||||||||||||||||||
14 | time, taking into account any benefits of price stability. | |||||||||||||||||||
15 | (1.5) To provide the highest quality of life for the | |||||||||||||||||||
16 | residents of Illinois and to provide for a clean and | |||||||||||||||||||
17 | healthy environment, it is the policy of this State to | |||||||||||||||||||
18 | rapidly transition to 100% clean energy by 2050. | |||||||||||||||||||
19 | (2) (Blank). | |||||||||||||||||||
20 | (3) (Blank). | |||||||||||||||||||
21 | (4) It is necessary to improve the process of | |||||||||||||||||||
22 | procuring electricity to serve Illinois residents, to | |||||||||||||||||||
23 | promote investment in energy efficiency and |
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1 | demand-response measures, and to maintain and support | ||||||
2 | development of clean coal technologies, generation | ||||||
3 | resources that operate at all hours of the day and under | ||||||
4 | all weather conditions, zero emission facilities, and | ||||||
5 | renewable resources. | ||||||
6 | (5) Procuring a diverse electricity supply portfolio | ||||||
7 | will ensure the lowest total cost over time for adequate, | ||||||
8 | reliable, efficient, and environmentally sustainable | ||||||
9 | electric service. | ||||||
10 | (6) Including renewable resources and zero emission | ||||||
11 | credits from zero emission facilities in that portfolio | ||||||
12 | will reduce long-term direct and indirect costs to | ||||||
13 | consumers by decreasing environmental impacts and by | ||||||
14 | avoiding or delaying the need for new generation, | ||||||
15 | transmission, and distribution infrastructure. Developing | ||||||
16 | new renewable energy resources in Illinois, including | ||||||
17 | brownfield solar projects and community solar projects, | ||||||
18 | will help to diversify Illinois electricity supply, avoid | ||||||
19 | and reduce pollution, reduce peak demand, and enhance | ||||||
20 | public health and well-being of Illinois residents. | ||||||
21 | (7) Developing community solar projects in Illinois | ||||||
22 | will help to expand access to renewable energy resources | ||||||
23 | to more Illinois residents. | ||||||
24 | (8) Developing brownfield solar projects in Illinois | ||||||
25 | will help return blighted or contaminated land to | ||||||
26 | productive use while enhancing public health and the |
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1 | well-being of Illinois residents, including those in | ||||||
2 | environmental justice communities. | ||||||
3 | (9) Energy efficiency, demand-response measures, zero | ||||||
4 | emission energy, and renewable energy are resources | ||||||
5 | currently underused in Illinois. These resources should be | ||||||
6 | used, when cost effective, to reduce costs to consumers, | ||||||
7 | improve reliability, and improve environmental quality and | ||||||
8 | public health. | ||||||
9 | (10) The State should encourage the use of advanced | ||||||
10 | clean coal technologies that capture and sequester carbon | ||||||
11 | dioxide emissions to advance environmental protection | ||||||
12 | goals and to demonstrate the viability of coal and | ||||||
13 | coal-derived fuels in a carbon-constrained economy. | ||||||
14 | (10.5) The State should encourage the development of | ||||||
15 | interregional high voltage direct current (HVDC) | ||||||
16 | transmission lines that benefit Illinois. All ratepayers | ||||||
17 | in the State served by the regional transmission | ||||||
18 | organization where the HVDC converter station is | ||||||
19 | interconnected benefit from the long-term price stability | ||||||
20 | and market access provided by interregional HVDC | ||||||
21 | transmission facilities. The benefits to Illinois include: | ||||||
22 | reduction in wholesale power prices; access to lower-cost | ||||||
23 | markets; enabling the integration of additional renewable | ||||||
24 | generating units within the State through near | ||||||
25 | instantaneous dispatchability and the provision of | ||||||
26 | ancillary services; creating good-paying union jobs in |
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1 | Illinois; and, enhancing grid reliability and climate | ||||||
2 | resilience via HVDC facilities that are installed | ||||||
3 | underground. | ||||||
4 | (10.6) The health, welfare, and safety of the people | ||||||
5 | of the State are advanced by developing new HVDC | ||||||
6 | transmission lines predominantly along transportation | ||||||
7 | rights-of-way, with an HVDC converter station that is | ||||||
8 | located in the service territory of a public utility as | ||||||
9 | defined in Section 3-105 of the Public Utilities Act | ||||||
10 | serving more than 3,000,000 retail customers, and with a | ||||||
11 | project labor agreement as defined in Section 1-10 of this | ||||||
12 | Act. | ||||||
13 | (11) The General Assembly enacted Public Act 96-0795 | ||||||
14 | to reform the State's purchasing processes, recognizing | ||||||
15 | that government procurement is susceptible to abuse if | ||||||
16 | structural and procedural safeguards are not in place to | ||||||
17 | ensure independence, insulation, oversight, and | ||||||
18 | transparency. | ||||||
19 | (12) The principles that underlie the procurement | ||||||
20 | reform legislation apply also in the context of power | ||||||
21 | purchasing. | ||||||
22 | (13) To ensure that the benefits of installing | ||||||
23 | renewable resources are available to all Illinois | ||||||
24 | residents and located across the State, subject to | ||||||
25 | appropriation, it is necessary for the Agency to provide | ||||||
26 | public information and educational resources on how |
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1 | residents can benefit from the expansion of renewable | ||||||
2 | energy in Illinois and participate in the Illinois Solar | ||||||
3 | for All Program established in Section 1-56, the | ||||||
4 | Adjustable Block program established in Section 1-75, the | ||||||
5 | job training programs established by paragraph (1) of | ||||||
6 | subsection (a) of Section 16-108.12 of the Public | ||||||
7 | Utilities Act, and the programs and resources established | ||||||
8 | by the Energy Transition Act. | ||||||
9 | (14) The deployment of energy storage systems is | ||||||
10 | necessary to achieve high levels of renewable energy, to | ||||||
11 | avoid the use of peaking fossil fuel plants, and to | ||||||
12 | maintain an efficient, reliable, and resilient electric | ||||||
13 | grid. | ||||||
14 | The General Assembly therefore finds that it is necessary | ||||||
15 | to create the Illinois Power Agency and that the goals and | ||||||
16 | objectives of that Agency are to accomplish each of the | ||||||
17 | following: | ||||||
18 | (A) Develop electricity procurement plans to ensure | ||||||
19 | adequate, reliable, affordable, efficient, and | ||||||
20 | environmentally sustainable electric service at the lowest | ||||||
21 | total cost over time, taking into account any benefits of | ||||||
22 | price stability, for electric utilities that on December | ||||||
23 | 31, 2005 provided electric service to at least 100,000 | ||||||
24 | customers in Illinois and for small multi-jurisdictional | ||||||
25 | electric utilities that (i) on December 31, 2005 served | ||||||
26 | less than 100,000 customers in Illinois and (ii) request a |
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1 | procurement plan for their Illinois jurisdictional load. | ||||||
2 | The procurement plan shall be updated on an annual basis | ||||||
3 | and shall include renewable energy resources and, | ||||||
4 | beginning with the delivery year commencing June 1, 2017, | ||||||
5 | zero emission credits from zero emission facilities | ||||||
6 | sufficient to achieve the standards specified in this Act. | ||||||
7 | (B) Conduct the competitive procurement processes | ||||||
8 | identified in this Act. | ||||||
9 | (C) Develop electric generation and co-generation | ||||||
10 | facilities that use indigenous coal or renewable | ||||||
11 | resources, or both, financed with bonds issued by the | ||||||
12 | Illinois Finance Authority. | ||||||
13 | (D) Supply electricity from the Agency's facilities at | ||||||
14 | cost to one or more of the following: municipal electric | ||||||
15 | systems, governmental aggregators, or rural electric | ||||||
16 | cooperatives in Illinois. | ||||||
17 | (E) Ensure that the process of power procurement is | ||||||
18 | conducted in an ethical and transparent fashion, immune | ||||||
19 | from improper influence. | ||||||
20 | (F) Continue to review its policies and practices to | ||||||
21 | determine how best to meet its mission of providing the | ||||||
22 | lowest cost power to the greatest number of people, at any | ||||||
23 | given point in time, in accordance with applicable law. | ||||||
24 | (G) Operate in a structurally insulated, independent, | ||||||
25 | and transparent fashion so that nothing impedes the | ||||||
26 | Agency's mission to secure power at the best prices the |
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1 | market will bear, provided that the Agency meets all | ||||||
2 | applicable legal requirements. | ||||||
3 | (H) Implement renewable energy procurement and | ||||||
4 | training programs throughout the State to diversify | ||||||
5 | Illinois electricity supply, improve reliability, avoid | ||||||
6 | and reduce pollution, reduce peak demand, and enhance | ||||||
7 | public health and well-being of Illinois residents, | ||||||
8 | including low-income residents. | ||||||
9 | (I) Implement procurements to cost-effectively deploy | ||||||
10 | contracted energy storage systems. | ||||||
11 | (Source: P.A. 102-662, eff. 9-15-21.)
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12 | (20 ILCS 3855/1-10) | ||||||
13 | Sec. 1-10. Definitions. | ||||||
14 | "Agency" means the Illinois Power Agency. | ||||||
15 | "Agency loan agreement" means any agreement pursuant to | ||||||
16 | which the Illinois Finance Authority agrees to loan the | ||||||
17 | proceeds of revenue bonds issued with respect to a project to | ||||||
18 | the Agency upon terms providing for loan repayment | ||||||
19 | installments at least sufficient to pay when due all principal | ||||||
20 | of, interest and premium, if any, on those revenue bonds, and | ||||||
21 | providing for maintenance, insurance, and other matters in | ||||||
22 | respect of the project. | ||||||
23 | "Authority" means the Illinois Finance Authority. | ||||||
24 | "Brownfield site photovoltaic project" means photovoltaics | ||||||
25 | that are either: |
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1 | (1) interconnected to an electric utility as defined | ||||||
2 | in this Section, a municipal utility as defined in this | ||||||
3 | Section, a public utility as defined in Section 3-105 of | ||||||
4 | the Public Utilities Act, or an electric cooperative as | ||||||
5 | defined in Section 3-119 of the Public Utilities Act and | ||||||
6 | located at a site that is regulated by any of the following | ||||||
7 | entities under the following programs: | ||||||
8 | (A) the United States Environmental Protection | ||||||
9 | Agency under the federal Comprehensive Environmental | ||||||
10 | Response, Compensation, and Liability Act of 1980, as | ||||||
11 | amended; | ||||||
12 | (B) the United States Environmental Protection | ||||||
13 | Agency under the Corrective Action Program of the | ||||||
14 | federal Resource Conservation and Recovery Act, as | ||||||
15 | amended; | ||||||
16 | (C) the Illinois Environmental Protection Agency | ||||||
17 | under the Illinois Site Remediation Program; or | ||||||
18 | (D) the Illinois Environmental Protection Agency | ||||||
19 | under the Illinois Solid Waste Program; or | ||||||
20 | (2) located at the site of a coal mine that has | ||||||
21 | permanently ceased coal production, permanently halted any | ||||||
22 | re-mining operations, and is no longer accepting any coal | ||||||
23 | combustion residues; has both completed all clean-up and | ||||||
24 | remediation obligations under the federal Surface Mining | ||||||
25 | and Reclamation Act of 1977 and all applicable Illinois | ||||||
26 | rules and any other clean-up, remediation, or ongoing |
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1 | monitoring to safeguard the health and well-being of the | ||||||
2 | people of the State of Illinois, as well as demonstrated | ||||||
3 | compliance with all applicable federal and State | ||||||
4 | environmental rules and regulations, including, but not | ||||||
5 | limited, to 35 Ill. Adm. Code Part 845 and any rules for | ||||||
6 | historic fill of coal combustion residuals, including any | ||||||
7 | rules finalized in Subdocket A of Illinois Pollution | ||||||
8 | Control Board docket R2020-019. | ||||||
9 | "Clean coal facility" means an electric generating | ||||||
10 | facility that uses primarily coal as a feedstock and that | ||||||
11 | captures and sequesters carbon dioxide emissions at the | ||||||
12 | following levels: at least 50% of the total carbon dioxide | ||||||
13 | emissions that the facility would otherwise emit if, at the | ||||||
14 | time construction commences, the facility is scheduled to | ||||||
15 | commence operation before 2016, at least 70% of the total | ||||||
16 | carbon dioxide emissions that the facility would otherwise | ||||||
17 | emit if, at the time construction commences, the facility is | ||||||
18 | scheduled to commence operation during 2016 or 2017, and at | ||||||
19 | least 90% of the total carbon dioxide emissions that the | ||||||
20 | facility would otherwise emit if, at the time construction | ||||||
21 | commences, the facility is scheduled to commence operation | ||||||
22 | after 2017. The power block of the clean coal facility shall | ||||||
23 | not exceed allowable emission rates for sulfur dioxide, | ||||||
24 | nitrogen oxides, carbon monoxide, particulates and mercury for | ||||||
25 | a natural gas-fired combined-cycle facility the same size as | ||||||
26 | and in the same location as the clean coal facility at the time |
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1 | the clean coal facility obtains an approved air permit. All | ||||||
2 | coal used by a clean coal facility shall have high volatile | ||||||
3 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
4 | million Btu content, unless the clean coal facility does not | ||||||
5 | use gasification technology and was operating as a | ||||||
6 | conventional coal-fired electric generating facility on June | ||||||
7 | 1, 2009 (the effective date of Public Act 95-1027). | ||||||
8 | "Clean coal SNG brownfield facility" means a facility that | ||||||
9 | (1) has commenced construction by July 1, 2015 on an urban | ||||||
10 | brownfield site in a municipality with at least 1,000,000 | ||||||
11 | residents; (2) uses a gasification process to produce | ||||||
12 | substitute natural gas; (3) uses coal as at least 50% of the | ||||||
13 | total feedstock over the term of any sourcing agreement with a | ||||||
14 | utility and the remainder of the feedstock may be either | ||||||
15 | petroleum coke or coal, with all such coal having a high | ||||||
16 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
17 | million Btu content unless the facility reasonably determines | ||||||
18 | that it is necessary to use additional petroleum coke to | ||||||
19 | deliver additional consumer savings, in which case the | ||||||
20 | facility shall use coal for at least 35% of the total feedstock | ||||||
21 | over the term of any sourcing agreement; and (4) captures and | ||||||
22 | sequesters at least 85% of the total carbon dioxide emissions | ||||||
23 | that the facility would otherwise emit. | ||||||
24 | "Clean coal SNG facility" means a facility that uses a | ||||||
25 | gasification process to produce substitute natural gas, that | ||||||
26 | sequesters at least 90% of the total carbon dioxide emissions |
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1 | that the facility would otherwise emit, that uses at least 90% | ||||||
2 | coal as a feedstock, with all such coal having a high | ||||||
3 | bituminous rank and greater than 1.7 pounds of sulfur per | ||||||
4 | million Btu content, and that has a valid and effective permit | ||||||
5 | to construct emission sources and air pollution control | ||||||
6 | equipment and approval with respect to the federal regulations | ||||||
7 | for Prevention of Significant Deterioration of Air Quality | ||||||
8 | (PSD) for the plant pursuant to the federal Clean Air Act; | ||||||
9 | provided, however, a clean coal SNG brownfield facility shall | ||||||
10 | not be a clean coal SNG facility. | ||||||
11 | "Clean energy" means energy generation that is 90% or | ||||||
12 | greater free of carbon dioxide emissions. | ||||||
13 | "Commission" means the Illinois Commerce Commission. | ||||||
14 | "Community renewable generation project" means an electric | ||||||
15 | generating facility that: | ||||||
16 | (1) is powered by wind, solar thermal energy, | ||||||
17 | photovoltaic cells or panels, biodiesel, crops and | ||||||
18 | untreated and unadulterated organic waste biomass, and | ||||||
19 | hydropower that does not involve new construction of dams; | ||||||
20 | (2) is interconnected at the distribution system level | ||||||
21 | of an electric utility as defined in this Section, a | ||||||
22 | municipal utility as defined in this Section that owns or | ||||||
23 | operates electric distribution facilities, a public | ||||||
24 | utility as defined in Section 3-105 of the Public | ||||||
25 | Utilities Act, or an electric cooperative, as defined in | ||||||
26 | Section 3-119 of the Public Utilities Act; |
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1 | (3) credits the value of electricity generated by the | ||||||
2 | facility to the subscribers of the facility; and | ||||||
3 | (4) is limited in nameplate capacity to less than or | ||||||
4 | equal to 5,000 kilowatts. | ||||||
5 | "Costs incurred in connection with the development and | ||||||
6 | construction of a facility" means: | ||||||
7 | (1) the cost of acquisition of all real property, | ||||||
8 | fixtures, and improvements in connection therewith and | ||||||
9 | equipment, personal property, and other property, rights, | ||||||
10 | and easements acquired that are deemed necessary for the | ||||||
11 | operation and maintenance of the facility; | ||||||
12 | (2) financing costs with respect to bonds, notes, and | ||||||
13 | other evidences of indebtedness of the Agency; | ||||||
14 | (3) all origination, commitment, utilization, | ||||||
15 | facility, placement, underwriting, syndication, credit | ||||||
16 | enhancement, and rating agency fees; | ||||||
17 | (4) engineering, design, procurement, consulting, | ||||||
18 | legal, accounting, title insurance, survey, appraisal, | ||||||
19 | escrow, trustee, collateral agency, interest rate hedging, | ||||||
20 | interest rate swap, capitalized interest, contingency, as | ||||||
21 | required by lenders, and other financing costs, and other | ||||||
22 | expenses for professional services; and | ||||||
23 | (5) the costs of plans, specifications, site study and | ||||||
24 | investigation, installation, surveys, other Agency costs | ||||||
25 | and estimates of costs, and other expenses necessary or | ||||||
26 | incidental to determining the feasibility of any project, |
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1 | together with such other expenses as may be necessary or | ||||||
2 | incidental to the financing, insuring, acquisition, and | ||||||
3 | construction of a specific project and starting up, | ||||||
4 | commissioning, and placing that project in operation. | ||||||
5 | "Daily energy volatility index" means a calculation, for a | ||||||
6 | contracted energy storage system, of the difference in average | ||||||
7 | price per megawatt hour between the average of the "X" highest | ||||||
8 | priced hours and the "X" lowest priced hours for each day, | ||||||
9 | adjusted for energy storage round trip efficiency, in the | ||||||
10 | day-ahead energy market of the energy storage duration of the | ||||||
11 | contracted energy storage system for each day in the day-ahead | ||||||
12 | energy market of the applicable pricing node of the | ||||||
13 | independent system operator or regional transmission | ||||||
14 | organization, where "X" equals the energy storage duration of | ||||||
15 | the contracted energy storage system. | ||||||
16 | "Delivery services" has the same definition as found in | ||||||
17 | Section 16-102 of the Public Utilities Act. | ||||||
18 | "Delivery year" means the consecutive 12-month period | ||||||
19 | beginning June 1 of a given year and ending May 31 of the | ||||||
20 | following year. | ||||||
21 | "Department" means the Department of Commerce and Economic | ||||||
22 | Opportunity. | ||||||
23 | "Director" means the Director of the Illinois Power | ||||||
24 | Agency. | ||||||
25 | "Demand-response" means measures that decrease peak | ||||||
26 | electricity demand or shift demand from peak to off-peak |
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1 | periods. | ||||||
2 | "Distributed renewable energy generation device" means a | ||||||
3 | device that is: | ||||||
4 | (1) powered by wind, solar thermal energy, | ||||||
5 | photovoltaic cells or panels, biodiesel, crops and | ||||||
6 | untreated and unadulterated organic waste biomass, tree | ||||||
7 | waste, and hydropower that does not involve new | ||||||
8 | construction of dams, waste heat to power systems, or | ||||||
9 | qualified combined heat and power systems; | ||||||
10 | (2) interconnected at the distribution system level of | ||||||
11 | either an electric utility as defined in this Section, a | ||||||
12 | municipal utility as defined in this Section that owns or | ||||||
13 | operates electric distribution facilities, or a rural | ||||||
14 | electric cooperative as defined in Section 3-119 of the | ||||||
15 | Public Utilities Act; | ||||||
16 | (3) located on the customer side of the customer's | ||||||
17 | electric meter and is primarily used to offset that | ||||||
18 | customer's electricity load; and | ||||||
19 | (4) (blank). | ||||||
20 | "Energy efficiency" means measures that reduce the amount | ||||||
21 | of electricity or natural gas consumed in order to achieve a | ||||||
22 | given end use. "Energy efficiency" includes voltage | ||||||
23 | optimization measures that optimize the voltage at points on | ||||||
24 | the electric distribution voltage system and thereby reduce | ||||||
25 | electricity consumption by electric customers' end use | ||||||
26 | devices. "Energy efficiency" also includes measures that |
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1 | reduce the total Btus of electricity, natural gas, and other | ||||||
2 | fuels needed to meet the end use or uses. | ||||||
3 | "Energy storage capacity" means the nameplate capacity of | ||||||
4 | a contracted energy storage system, measured in megawatts AC. | ||||||
5 | "Energy storage credit" means a fungible credit that | ||||||
6 | represents the flexibility value of a contracted energy | ||||||
7 | storage system. An energy storage credit is produced for each | ||||||
8 | one megawatt of energy storage capacity multiplied by the | ||||||
9 | energy storage duration each day that the contracted energy | ||||||
10 | storage system is interconnected with wholesale electricity | ||||||
11 | markets. | ||||||
12 | "Energy storage credit counterparty" has the same meaning | ||||||
13 | as "public utility" as defined in Section 3-105 of the Public | ||||||
14 | Utilities Act. | ||||||
15 | "Energy storage credit value" means a price, measured in | ||||||
16 | dollars per credit, calculated for each day for a contracted | ||||||
17 | energy storage system by subtracting the daily energy | ||||||
18 | volatility index and the reference capacity price from the | ||||||
19 | energy storage strike price. | ||||||
20 | "Energy storage duration" means the number of hours over | ||||||
21 | which an energy storage system is capable of continuously | ||||||
22 | discharging energy at its full energy storage capacity. | ||||||
23 | "Energy storage round-trip efficiency" means the ratio of | ||||||
24 | energy discharged from an energy storage system at its energy | ||||||
25 | capacity divided by the energy used to charge the energy | ||||||
26 | storage system at its energy capacity. |
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1 | "Energy storage strike price" means a contract price for | ||||||
2 | energy storage credits from a contracted energy storage | ||||||
3 | system. | ||||||
4 | "Energy storage system" means commercially available | ||||||
5 | technology that is capable of absorbing energy and storing it | ||||||
6 | for use at a later time, including, but not limited to, | ||||||
7 | electrochemical and electromechanical technologies. "Energy | ||||||
8 | storage system" does not include technologies that require | ||||||
9 | combustion. | ||||||
10 | "Electric utility" has the same definition as found in | ||||||
11 | Section 16-102 of the Public Utilities Act. | ||||||
12 | "Equity investment eligible community" or "eligible | ||||||
13 | community" are synonymous and mean the geographic areas | ||||||
14 | throughout Illinois which would most benefit from equitable | ||||||
15 | investments by the State designed to combat discrimination. | ||||||
16 | Specifically, the eligible communities shall be defined as the | ||||||
17 | following areas: | ||||||
18 | (1) R3 Areas as established pursuant to Section 10-40 | ||||||
19 | of the Cannabis Regulation and Tax Act, where residents | ||||||
20 | have historically been excluded from economic | ||||||
21 | opportunities, including opportunities in the energy | ||||||
22 | sector; and | ||||||
23 | (2) environmental justice communities, as defined by | ||||||
24 | the Illinois Power Agency pursuant to the Illinois Power | ||||||
25 | Agency Act, where residents have historically been subject | ||||||
26 | to disproportionate burdens of pollution, including |
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1 | pollution from the energy sector. | ||||||
2 | "Equity eligible persons" or "eligible persons" means | ||||||
3 | persons who would most benefit from equitable investments by | ||||||
4 | the State designed to combat discrimination, specifically: | ||||||
5 | (1) persons who graduate from or are current or former | ||||||
6 | participants in the Clean Jobs Workforce Network Program, | ||||||
7 | the Clean Energy Contractor Incubator Program, the | ||||||
8 | Illinois Climate Works Preapprenticeship Program, | ||||||
9 | Returning Residents Clean Jobs Training Program, or the | ||||||
10 | Clean Energy Primes Contractor Accelerator Program, and | ||||||
11 | the solar training pipeline and multi-cultural jobs | ||||||
12 | program created in paragraphs (a)(1) and (a)(3) of Section | ||||||
13 | 16-208.12 of the Public Utilities Act; | ||||||
14 | (2) persons who are graduates of or currently enrolled | ||||||
15 | in the foster care system; | ||||||
16 | (3) persons who were formerly incarcerated; | ||||||
17 | (4) persons whose primary residence is in an equity | ||||||
18 | investment eligible community. | ||||||
19 | "Equity eligible contractor" means a business that is | ||||||
20 | majority-owned by eligible persons, or a nonprofit or | ||||||
21 | cooperative that is majority-governed by eligible persons, or | ||||||
22 | is a natural person that is an eligible person offering | ||||||
23 | personal services as an independent contractor. | ||||||
24 | "Facility" means an electric generating unit or a | ||||||
25 | co-generating unit that produces electricity along with | ||||||
26 | related equipment necessary to connect the facility to an |
| |||||||
| |||||||
1 | electric transmission or distribution system. | ||||||
2 | "General contractor" means the entity or organization with | ||||||
3 | main responsibility for the building of a construction project | ||||||
4 | and who is the party signing the prime construction contract | ||||||
5 | for the project. | ||||||
6 | "Governmental aggregator" means one or more units of local | ||||||
7 | government that individually or collectively procure | ||||||
8 | electricity to serve residential retail electrical loads | ||||||
9 | located within its or their jurisdiction. | ||||||
10 | "High voltage direct current converter station" means the | ||||||
11 | collection of equipment that converts direct current energy | ||||||
12 | from a high voltage direct current transmission line into | ||||||
13 | alternating current using Voltage Source Conversion technology | ||||||
14 | and that is interconnected with transmission or distribution | ||||||
15 | assets located in Illinois. | ||||||
16 | "High voltage direct current renewable energy credit" | ||||||
17 | means a renewable energy credit associated with a renewable | ||||||
18 | energy resource where the renewable energy resource has | ||||||
19 | entered into a contract to transmit the energy associated with | ||||||
20 | such renewable energy credit over high voltage direct current | ||||||
21 | transmission facilities. | ||||||
22 | "High voltage direct current transmission facilities" | ||||||
23 | means the collection of installed equipment that converts | ||||||
24 | alternating current energy in one location to direct current | ||||||
25 | and transmits that direct current energy to a high voltage | ||||||
26 | direct current converter station using Voltage Source |
| |||||||
| |||||||
1 | Conversion technology. "High voltage direct current | ||||||
2 | transmission facilities" includes the high voltage direct | ||||||
3 | current converter station itself and associated high voltage | ||||||
4 | direct current transmission lines. Notwithstanding the | ||||||
5 | preceding, after September 15, 2021 (the effective date of | ||||||
6 | Public Act 102-662), an otherwise qualifying collection of | ||||||
7 | equipment does not qualify as high voltage direct current | ||||||
8 | transmission facilities unless its developer entered into a | ||||||
9 | project labor agreement, is capable of transmitting | ||||||
10 | electricity at 525kv with an Illinois converter station | ||||||
11 | located and interconnected in the region of the PJM | ||||||
12 | Interconnection, LLC, and the system does not operate as a | ||||||
13 | public utility, as that term is defined in Section 3-105 of the | ||||||
14 | Public Utilities Act. | ||||||
15 | "Hydropower" means any method of electricity generation or | ||||||
16 | storage that results from the flow of water, including | ||||||
17 | impoundment facilities, diversion facilities, and pumped | ||||||
18 | storage facilities. | ||||||
19 | "Index price" means the real-time energy settlement price | ||||||
20 | at the applicable Illinois trading hub, such as PJM-NIHUB or | ||||||
21 | MISO-IL, for a given settlement period. "Index price" may, if | ||||||
22 | a utility-scale wind facility or a utility-scale solar | ||||||
23 | facility interconnected with an electric utility elects to use | ||||||
24 | an alternative definition, also include the monthly settlement | ||||||
25 | of the applicable seasonal qualifying facilities rate offered | ||||||
26 | by the interconnecting electric utility. |
| |||||||
| |||||||
1 | "Indexed credit" means a credit subject to a contract | ||||||
2 | described in Section 1-93. | ||||||
3 | "Indexed renewable energy credit" means a tradable credit | ||||||
4 | that represents the environmental attributes of one megawatt | ||||||
5 | hour of energy produced from a renewable energy resource, the | ||||||
6 | price of which shall be calculated by subtracting the strike | ||||||
7 | price offered by a new utility-scale wind project or a new | ||||||
8 | utility-scale photovoltaic project from the index price in a | ||||||
9 | given settlement period. | ||||||
10 | "Indexed renewable energy credit counterparty" has the | ||||||
11 | same meaning as "public utility" as defined in Section 3-105 | ||||||
12 | of the Public Utilities Act. | ||||||
13 | "Local government" means a unit of local government as | ||||||
14 | defined in Section 1 of Article VII of the Illinois | ||||||
15 | Constitution. | ||||||
16 | "Long-duration energy storage" means an energy storage | ||||||
17 | system capable of dispatching energy at its full rated | ||||||
18 | capacity for 10 or more hours. | ||||||
19 | "Long-term energy storage contract" means a contract for | ||||||
20 | the purchase of energy storage credits generated by an energy | ||||||
21 | storage system for a period of at least 15 years. | ||||||
22 | "Modernized" or "retooled" means the construction, repair, | ||||||
23 | maintenance, or significant expansion of turbines and existing | ||||||
24 | hydropower dams. | ||||||
25 | "Multi-day energy storage" means an energy storage system | ||||||
26 | capable of dispatching energy at its full rated capacity for |
| |||||||
| |||||||
1 | greater than 24 hours. | ||||||
2 | "Municipality" means a city, village, or incorporated | ||||||
3 | town. | ||||||
4 | "Municipal utility" means a public utility owned and | ||||||
5 | operated by any subdivision or municipal corporation of this | ||||||
6 | State. | ||||||
7 | "Nameplate capacity" means the aggregate inverter | ||||||
8 | nameplate capacity in kilowatts AC. "Nameplate capacity" does | ||||||
9 | not include the capacity of an energy storage system | ||||||
10 | associated with a renewable energy resource. | ||||||
11 | "Person" means any natural person, firm, partnership, | ||||||
12 | corporation, either domestic or foreign, company, association, | ||||||
13 | limited liability company, joint stock company, or association | ||||||
14 | and includes any trustee, receiver, assignee, or personal | ||||||
15 | representative thereof. | ||||||
16 | "Project" means the planning, bidding, and construction of | ||||||
17 | a facility. | ||||||
18 | "Project labor agreement" means a pre-hire collective | ||||||
19 | bargaining agreement that covers all terms and conditions of | ||||||
20 | employment on a specific construction project and must include | ||||||
21 | the following: | ||||||
22 | (1) provisions establishing the minimum hourly wage | ||||||
23 | for each class of labor organization employee; | ||||||
24 | (2) provisions establishing the benefits and other | ||||||
25 | compensation for each class of labor organization | ||||||
26 | employee; |
| |||||||
| |||||||
1 | (3) provisions establishing that no strike or disputes | ||||||
2 | will be engaged in by the labor organization employees; | ||||||
3 | (4) provisions establishing that no lockout or | ||||||
4 | disputes will be engaged in by the general contractor | ||||||
5 | building the project; and | ||||||
6 | (5) provisions for minorities and women, as defined | ||||||
7 | under the Business Enterprise for Minorities, Women, and | ||||||
8 | Persons with Disabilities Act, setting forth goals for | ||||||
9 | apprenticeship hours to be performed by minorities and | ||||||
10 | women and setting forth goals for total hours to be | ||||||
11 | performed by underrepresented minorities and women. | ||||||
12 | A labor organization and the general contractor building | ||||||
13 | the project shall have the authority to include other terms | ||||||
14 | and conditions as they deem necessary. | ||||||
15 | "Public utility" has the same definition as found in | ||||||
16 | Section 3-105 of the Public Utilities Act. | ||||||
17 | "Qualified combined heat and power systems" means systems | ||||||
18 | that, either simultaneously or sequentially, produce | ||||||
19 | electricity and useful thermal energy from a single fuel | ||||||
20 | source. Such systems are eligible for "renewable energy | ||||||
21 | credits" in an amount equal to its total energy output where a | ||||||
22 | renewable fuel is consumed or in an amount equal to the net | ||||||
23 | reduction in nonrenewable fuel consumed on a total energy | ||||||
24 | output basis. | ||||||
25 | "Real property" means any interest in land together with | ||||||
26 | all structures, fixtures, and improvements thereon, including |
| |||||||
| |||||||
1 | lands under water and riparian rights, any easements, | ||||||
2 | covenants, licenses, leases, rights-of-way, uses, and other | ||||||
3 | interests, together with any liens, judgments, mortgages, or | ||||||
4 | other claims or security interests related to real property. | ||||||
5 | "Reference capacity price" means a price, measured in | ||||||
6 | dollars per megawatt hour, representing the revenue available | ||||||
7 | for a contracted energy storage system through participation | ||||||
8 | in the MISO Planning Resource Auction or the PJM Base Residual | ||||||
9 | Auction, or their successor resource adequacy constructs. The | ||||||
10 | reference capacity price shall be calculated by adjusting the | ||||||
11 | currently prevailing clearing price in the MISO Planning | ||||||
12 | Resource Auction or the PJM Base Residual Action, or their | ||||||
13 | successor resource adequacy constructs, by the accredited | ||||||
14 | capacity of the contracted energy storage system and | ||||||
15 | converting the units to megawatt hours. | ||||||
16 | "Renewable energy credit" means a tradable credit that | ||||||
17 | represents the environmental attributes of one megawatt hour | ||||||
18 | of energy produced from a renewable energy resource. | ||||||
19 | "Renewable energy resources" includes energy and its | ||||||
20 | associated renewable energy credit or renewable energy credits | ||||||
21 | from wind, solar thermal energy, photovoltaic cells and | ||||||
22 | panels, biodiesel, anaerobic digestion, crops and untreated | ||||||
23 | and unadulterated organic waste biomass, and hydropower that | ||||||
24 | does not involve new construction of dams, waste heat to power | ||||||
25 | systems, or qualified combined heat and power systems. For | ||||||
26 | purposes of this Act, landfill gas produced in the State is |
| |||||||
| |||||||
1 | considered a renewable energy resource. "Renewable energy | ||||||
2 | resources" does not include the incineration or burning of | ||||||
3 | tires, garbage, general household, institutional, and | ||||||
4 | commercial waste, industrial lunchroom or office waste, | ||||||
5 | landscape waste, railroad crossties, utility poles, or | ||||||
6 | construction or demolition debris, other than untreated and | ||||||
7 | unadulterated waste wood. "Renewable energy resources" also | ||||||
8 | includes high voltage direct current renewable energy credits | ||||||
9 | and the associated energy converted to alternating current by | ||||||
10 | a high voltage direct current converter station to the extent | ||||||
11 | that: (1) the generator of such renewable energy resource | ||||||
12 | contracted with a third party to transmit the energy over the | ||||||
13 | high voltage direct current transmission facilities, and (2) | ||||||
14 | the third-party contracting for delivery of renewable energy | ||||||
15 | resources over the high voltage direct current transmission | ||||||
16 | facilities have ownership rights over the unretired associated | ||||||
17 | high voltage direct current renewable energy credit. | ||||||
18 | "Retail customer" has the same definition as found in | ||||||
19 | Section 16-102 of the Public Utilities Act. | ||||||
20 | "Revenue bond" means any bond, note, or other evidence of | ||||||
21 | indebtedness issued by the Authority, the principal and | ||||||
22 | interest of which is payable solely from revenues or income | ||||||
23 | derived from any project or activity of the Agency. | ||||||
24 | "Sequester" means permanent storage of carbon dioxide by | ||||||
25 | injecting it into a saline aquifer, a depleted gas reservoir, | ||||||
26 | or an oil reservoir, directly or through an enhanced oil |
| |||||||
| |||||||
1 | recovery process that may involve intermediate storage, | ||||||
2 | regardless of whether these activities are conducted by a | ||||||
3 | clean coal facility, a clean coal SNG facility, a clean coal | ||||||
4 | SNG brownfield facility, or a party with which a clean coal | ||||||
5 | facility, clean coal SNG facility, or clean coal SNG | ||||||
6 | brownfield facility has contracted for such purposes. | ||||||
7 | "Service area" has the same definition as found in Section | ||||||
8 | 16-102 of the Public Utilities Act. | ||||||
9 | "Settlement period" means the period of time utilized by | ||||||
10 | MISO and PJM and their successor organizations as the basis | ||||||
11 | for settlement calculations in the real-time energy market. | ||||||
12 | "Sourcing agreement" means (i) in the case of an electric | ||||||
13 | utility, an agreement between the owner of a clean coal | ||||||
14 | facility and such electric utility, which agreement shall have | ||||||
15 | terms and conditions meeting the requirements of paragraph (3) | ||||||
16 | of subsection (d) of Section 1-75, (ii) in the case of an | ||||||
17 | alternative retail electric supplier, an agreement between the | ||||||
18 | owner of a clean coal facility and such alternative retail | ||||||
19 | electric supplier, which agreement shall have terms and | ||||||
20 | conditions meeting the requirements of Section 16-115(d)(5) of | ||||||
21 | the Public Utilities Act, and (iii) in case of a gas utility, | ||||||
22 | an agreement between the owner of a clean coal SNG brownfield | ||||||
23 | facility and the gas utility, which agreement shall have the | ||||||
24 | terms and conditions meeting the requirements of subsection | ||||||
25 | (h-1) of Section 9-220 of the Public Utilities Act. | ||||||
26 | "Strike price" means a contract price for energy and |
| |||||||
| |||||||
1 | renewable energy credits from a new utility-scale wind project | ||||||
2 | or a new utility-scale photovoltaic project. | ||||||
3 | "Subscriber" means a person who (i) takes delivery service | ||||||
4 | from an electric utility, and (ii) has a subscription of no | ||||||
5 | less than 200 watts to a community renewable generation | ||||||
6 | project that is located in the electric utility's service | ||||||
7 | area. No subscriber's subscriptions may total more than 40% of | ||||||
8 | the nameplate capacity of an individual community renewable | ||||||
9 | generation project. Entities that are affiliated by virtue of | ||||||
10 | a common parent shall not represent multiple subscriptions | ||||||
11 | that total more than 40% of the nameplate capacity of an | ||||||
12 | individual community renewable generation project. | ||||||
13 | "Subscription" means an interest in a community renewable | ||||||
14 | generation project expressed in kilowatts, which is sized | ||||||
15 | primarily to offset part or all of the subscriber's | ||||||
16 | electricity usage. | ||||||
17 | "Substitute natural gas" or "SNG" means a gas manufactured | ||||||
18 | by gasification of hydrocarbon feedstock, which is | ||||||
19 | substantially interchangeable in use and distribution with | ||||||
20 | conventional natural gas. | ||||||
21 | "Tolling agreement" means a contract of not less than 15 | ||||||
22 | years between the owner or operator of an energy storage | ||||||
23 | system and an electric utility where the electric utility | ||||||
24 | contracts for supply and other services from the energy | ||||||
25 | storage system. | ||||||
26 | "Total resource cost test" or "TRC test" means a standard |
| |||||||
| |||||||
1 | that is met if, for an investment in energy efficiency or | ||||||
2 | demand-response measures, the benefit-cost ratio is greater | ||||||
3 | than one. The benefit-cost ratio is the ratio of the net | ||||||
4 | present value of the total benefits of the program to the net | ||||||
5 | present value of the total costs as calculated over the | ||||||
6 | lifetime of the measures. A total resource cost test compares | ||||||
7 | the sum of avoided electric utility costs, representing the | ||||||
8 | benefits that accrue to the system and the participant in the | ||||||
9 | delivery of those efficiency measures and including avoided | ||||||
10 | costs associated with reduced use of natural gas or other | ||||||
11 | fuels, avoided costs associated with reduced water | ||||||
12 | consumption, and avoided costs associated with reduced | ||||||
13 | operation and maintenance costs, as well as other quantifiable | ||||||
14 | societal benefits, to the sum of all incremental costs of | ||||||
15 | end-use measures that are implemented due to the program | ||||||
16 | (including both utility and participant contributions), plus | ||||||
17 | costs to administer, deliver, and evaluate each demand-side | ||||||
18 | program, to quantify the net savings obtained by substituting | ||||||
19 | the demand-side program for supply resources. In calculating | ||||||
20 | avoided costs of power and energy that an electric utility | ||||||
21 | would otherwise have had to acquire, reasonable estimates | ||||||
22 | shall be included of financial costs likely to be imposed by | ||||||
23 | future regulations and legislation on emissions of greenhouse | ||||||
24 | gases. In discounting future societal costs and benefits for | ||||||
25 | the purpose of calculating net present values, a societal | ||||||
26 | discount rate based on actual, long-term Treasury bond yields |
| |||||||
| |||||||
1 | should be used. Notwithstanding anything to the contrary, the | ||||||
2 | TRC test shall not include or take into account a calculation | ||||||
3 | of market price suppression effects or demand reduction | ||||||
4 | induced price effects. | ||||||
5 | "Utility-scale solar project" means an electric generating | ||||||
6 | facility that: | ||||||
7 | (1) generates electricity using photovoltaic cells; | ||||||
8 | and | ||||||
9 | (2) has a nameplate capacity that is greater than | ||||||
10 | 5,000 kilowatts. | ||||||
11 | "Utility-scale wind project" means an electric generating | ||||||
12 | facility that: | ||||||
13 | (1) generates electricity using wind; and | ||||||
14 | (2) has a nameplate capacity that is greater than | ||||||
15 | 5,000 kilowatts. | ||||||
16 | "Waste Heat to Power Systems" means systems that capture | ||||||
17 | and generate electricity from energy that would otherwise be | ||||||
18 | lost to the atmosphere without the use of additional fuel. | ||||||
19 | "Zero emission credit" means a tradable credit that | ||||||
20 | represents the environmental attributes of one megawatt hour | ||||||
21 | of energy produced from a zero emission facility. | ||||||
22 | "Zero emission facility" means a facility that: (1) is | ||||||
23 | fueled by nuclear power; and (2) is interconnected with PJM | ||||||
24 | Interconnection, LLC or the Midcontinent Independent System | ||||||
25 | Operator, Inc., or their successors. | ||||||
26 | (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23; |
| |||||||
| |||||||
1 | 103-380, eff. 1-1-24 .)
| ||||||
2 | (20 ILCS 3855/1-20) | ||||||
3 | Sec. 1-20. General powers and duties of the Agency. | ||||||
4 | (a) The Agency is authorized to do each of the following: | ||||||
5 | (1) Develop electricity procurement plans to ensure | ||||||
6 | adequate, reliable, affordable, efficient, and | ||||||
7 | environmentally sustainable electric service at the lowest | ||||||
8 | total cost over time, taking into account any benefits of | ||||||
9 | price stability, for electric utilities that on December | ||||||
10 | 31, 2005 provided electric service to at least 100,000 | ||||||
11 | customers in Illinois and for small multi-jurisdictional | ||||||
12 | electric utilities that (A) on December 31, 2005 served | ||||||
13 | less than 100,000 customers in Illinois and (B) request a | ||||||
14 | procurement plan for their Illinois jurisdictional load. | ||||||
15 | Except as provided in paragraph (1.5) of this subsection | ||||||
16 | (a), the electricity procurement plans shall be updated on | ||||||
17 | an annual basis and shall include electricity generated | ||||||
18 | from renewable resources sufficient to achieve the | ||||||
19 | standards specified in this Act. Beginning with the | ||||||
20 | delivery year commencing June 1, 2017, develop procurement | ||||||
21 | plans to include zero emission credits generated from zero | ||||||
22 | emission facilities sufficient to achieve the standards | ||||||
23 | specified in this Act. Beginning with the delivery year | ||||||
24 | commencing on June 1, 2022, the Agency is authorized to | ||||||
25 | develop carbon mitigation credit procurement plans to |
| |||||||
| |||||||
1 | include carbon mitigation credits generated from | ||||||
2 | carbon-free energy resources sufficient to achieve the | ||||||
3 | standards specified in this Act. | ||||||
4 | (1.5) Develop a long-term renewable resources | ||||||
5 | procurement plan in accordance with subsection (c) of | ||||||
6 | Section 1-75 of this Act for renewable energy credits in | ||||||
7 | amounts sufficient to achieve the standards specified in | ||||||
8 | this Act for delivery years commencing June 1, 2017 and | ||||||
9 | for the programs and renewable energy credits specified in | ||||||
10 | Section 1-56 of this Act. Electricity procurement plans | ||||||
11 | for delivery years commencing after May 31, 2017, shall | ||||||
12 | not include procurement of renewable energy resources. | ||||||
13 | (2) Conduct competitive procurement processes to | ||||||
14 | procure the supply resources identified in the electricity | ||||||
15 | procurement plan, pursuant to Section 16-111.5 of the | ||||||
16 | Public Utilities Act, and, for the delivery year | ||||||
17 | commencing June 1, 2017, conduct procurement processes to | ||||||
18 | procure zero emission credits from zero emission | ||||||
19 | facilities, under subsection (d-5) of Section 1-75 of this | ||||||
20 | Act. For the delivery year commencing June 1, 2022, the | ||||||
21 | Agency is authorized to conduct procurement processes to | ||||||
22 | procure carbon mitigation credits from carbon-free energy | ||||||
23 | resources, under subsection (d-10) of Section 1-75 of this | ||||||
24 | Act. | ||||||
25 | (2.5) Beginning with the procurement for the 2017 | ||||||
26 | delivery year, conduct competitive procurement processes |
| |||||||
| |||||||
1 | and implement programs to procure renewable energy credits | ||||||
2 | identified in the long-term renewable resources | ||||||
3 | procurement plan developed and approved under subsection | ||||||
4 | (c) of Section 1-75 of this Act and Section 16-111.5 of the | ||||||
5 | Public Utilities Act. | ||||||
6 | (2.10) Oversee the procurement by electric utilities | ||||||
7 | that served more than 300,000 customers in this State as | ||||||
8 | of January 1, 2019 of renewable energy credits from new | ||||||
9 | renewable energy facilities to be installed, along with | ||||||
10 | energy storage facilities, at or adjacent to the sites of | ||||||
11 | electric generating facilities that burned coal as their | ||||||
12 | primary fuel source as of January 1, 2016 in accordance | ||||||
13 | with subsection (c-5) of Section 1-75 of this Act. | ||||||
14 | (2.15) Oversee the procurement by electric utilities | ||||||
15 | of renewable energy credits from newly modernized or | ||||||
16 | retooled hydropower dams or dams that have been converted | ||||||
17 | to support hydropower generation. | ||||||
18 | (3) Develop electric generation and co-generation | ||||||
19 | facilities that use indigenous coal or renewable | ||||||
20 | resources, or both, financed with bonds issued by the | ||||||
21 | Illinois Finance Authority. | ||||||
22 | (4) Supply electricity from the Agency's facilities at | ||||||
23 | cost to one or more of the following: municipal electric | ||||||
24 | systems, governmental aggregators, or rural electric | ||||||
25 | cooperatives in Illinois. | ||||||
26 | (5) Conduct competitive solicitations to procure |
| |||||||
| |||||||
1 | energy storage credits sufficient to achieve, at minimum, | ||||||
2 | the energy storage standard under Section 1-93. | ||||||
3 | (b) Except as otherwise limited by this Act, the Agency | ||||||
4 | has all of the powers necessary or convenient to carry out the | ||||||
5 | purposes and provisions of this Act, including without | ||||||
6 | limitation, each of the following: | ||||||
7 | (1) To have a corporate seal, and to alter that seal at | ||||||
8 | pleasure, and to use it by causing it or a facsimile to be | ||||||
9 | affixed or impressed or reproduced in any other manner. | ||||||
10 | (2) To use the services of the Illinois Finance | ||||||
11 | Authority necessary to carry out the Agency's purposes. | ||||||
12 | (3) To negotiate and enter into loan agreements and | ||||||
13 | other agreements with the Illinois Finance Authority. | ||||||
14 | (4) To obtain and employ personnel and hire | ||||||
15 | consultants that are necessary to fulfill the Agency's | ||||||
16 | purposes, and to make expenditures for that purpose within | ||||||
17 | the appropriations for that purpose. | ||||||
18 | (5) To purchase, receive, take by grant, gift, devise, | ||||||
19 | bequest, or otherwise, lease, or otherwise acquire, own, | ||||||
20 | hold, improve, employ, use, and otherwise deal in and | ||||||
21 | with, real or personal property whether tangible or | ||||||
22 | intangible, or any interest therein, within the State. | ||||||
23 | (6) To acquire real or personal property, whether | ||||||
24 | tangible or intangible, including without limitation | ||||||
25 | property rights, interests in property, franchises, | ||||||
26 | obligations, contracts, and debt and equity securities, |
| |||||||
| |||||||
1 | and to do so by the exercise of the power of eminent domain | ||||||
2 | in accordance with Section 1-21; except that any real | ||||||
3 | property acquired by the exercise of the power of eminent | ||||||
4 | domain must be located within the State. | ||||||
5 | (7) To sell, convey, lease, exchange, transfer, | ||||||
6 | abandon, or otherwise dispose of, or mortgage, pledge, or | ||||||
7 | create a security interest in, any of its assets, | ||||||
8 | properties, or any interest therein, wherever situated. | ||||||
9 | (8) To purchase, take, receive, subscribe for, or | ||||||
10 | otherwise acquire, hold, make a tender offer for, vote, | ||||||
11 | employ, sell, lend, lease, exchange, transfer, or | ||||||
12 | otherwise dispose of, mortgage, pledge, or grant a | ||||||
13 | security interest in, use, and otherwise deal in and with, | ||||||
14 | bonds and other obligations, shares, or other securities | ||||||
15 | (or interests therein) issued by others, whether engaged | ||||||
16 | in a similar or different business or activity. | ||||||
17 | (9) To make and execute agreements, contracts, and | ||||||
18 | other instruments necessary or convenient in the exercise | ||||||
19 | of the powers and functions of the Agency under this Act, | ||||||
20 | including contracts with any person, including personal | ||||||
21 | service contracts, or with any local government, State | ||||||
22 | agency, or other entity; and all State agencies and all | ||||||
23 | local governments are authorized to enter into and do all | ||||||
24 | things necessary to perform any such agreement, contract, | ||||||
25 | or other instrument with the Agency. No such agreement, | ||||||
26 | contract, or other instrument shall exceed 40 years. |
| |||||||
| |||||||
1 | (10) To lend money, invest and reinvest its funds in | ||||||
2 | accordance with the Public Funds Investment Act, and take | ||||||
3 | and hold real and personal property as security for the | ||||||
4 | payment of funds loaned or invested. | ||||||
5 | (11) To borrow money at such rate or rates of interest | ||||||
6 | as the Agency may determine, issue its notes, bonds, or | ||||||
7 | other obligations to evidence that indebtedness, and | ||||||
8 | secure any of its obligations by mortgage or pledge of its | ||||||
9 | real or personal property, machinery, equipment, | ||||||
10 | structures, fixtures, inventories, revenues, grants, and | ||||||
11 | other funds as provided or any interest therein, wherever | ||||||
12 | situated. | ||||||
13 | (12) To enter into agreements with the Illinois | ||||||
14 | Finance Authority to issue bonds whether or not the income | ||||||
15 | therefrom is exempt from federal taxation. | ||||||
16 | (13) To procure insurance against any loss in | ||||||
17 | connection with its properties or operations in such | ||||||
18 | amount or amounts and from such insurers, including the | ||||||
19 | federal government, as it may deem necessary or desirable, | ||||||
20 | and to pay any premiums therefor. | ||||||
21 | (14) To negotiate and enter into agreements with | ||||||
22 | trustees or receivers appointed by United States | ||||||
23 | bankruptcy courts or federal district courts or in other | ||||||
24 | proceedings involving adjustment of debts and authorize | ||||||
25 | proceedings involving adjustment of debts and authorize | ||||||
26 | legal counsel for the Agency to appear in any such |
| |||||||
| |||||||
1 | proceedings. | ||||||
2 | (15) To file a petition under Chapter 9 of Title 11 of | ||||||
3 | the United States Bankruptcy Code or take other similar | ||||||
4 | action for the adjustment of its debts. | ||||||
5 | (16) To enter into management agreements for the | ||||||
6 | operation of any of the property or facilities owned by | ||||||
7 | the Agency. | ||||||
8 | (17) To enter into an agreement to transfer and to | ||||||
9 | transfer any land, facilities, fixtures, or equipment of | ||||||
10 | the Agency to one or more municipal electric systems, | ||||||
11 | governmental aggregators, or rural electric agencies or | ||||||
12 | cooperatives, for such consideration and upon such terms | ||||||
13 | as the Agency may determine to be in the best interest of | ||||||
14 | the residents of Illinois. | ||||||
15 | (18) To enter upon any lands and within any building | ||||||
16 | whenever in its judgment it may be necessary for the | ||||||
17 | purpose of making surveys and examinations to accomplish | ||||||
18 | any purpose authorized by this Act. | ||||||
19 | (19) To maintain an office or offices at such place or | ||||||
20 | places in the State as it may determine. | ||||||
21 | (20) To request information, and to make any inquiry, | ||||||
22 | investigation, survey, or study that the Agency may deem | ||||||
23 | necessary to enable it effectively to carry out the | ||||||
24 | provisions of this Act. | ||||||
25 | (21) To accept and expend appropriations. | ||||||
26 | (22) To engage in any activity or operation that is |
| |||||||
| |||||||
1 | incidental to and in furtherance of efficient operation to | ||||||
2 | accomplish the Agency's purposes, including hiring | ||||||
3 | employees that the Director deems essential for the | ||||||
4 | operations of the Agency. | ||||||
5 | (23) To adopt, revise, amend, and repeal rules with | ||||||
6 | respect to its operations, properties, and facilities as | ||||||
7 | may be necessary or convenient to carry out the purposes | ||||||
8 | of this Act, subject to the provisions of the Illinois | ||||||
9 | Administrative Procedure Act and Sections 1-22 and 1-35 of | ||||||
10 | this Act. | ||||||
11 | (24) To establish and collect charges and fees as | ||||||
12 | described in this Act. | ||||||
13 | (25) To conduct competitive gasification feedstock | ||||||
14 | procurement processes to procure the feedstocks for the | ||||||
15 | clean coal SNG brownfield facility in accordance with the | ||||||
16 | requirements of Section 1-78 of this Act. | ||||||
17 | (26) To review, revise, and approve sourcing | ||||||
18 | agreements and mediate and resolve disputes between gas | ||||||
19 | utilities and the clean coal SNG brownfield facility | ||||||
20 | pursuant to subsection (h-1) of Section 9-220 of the | ||||||
21 | Public Utilities Act. | ||||||
22 | (27) To request, review and accept proposals, execute | ||||||
23 | contracts, purchase renewable energy credits and otherwise | ||||||
24 | dedicate funds from the Illinois Power Agency Renewable | ||||||
25 | Energy Resources Fund to create and carry out the | ||||||
26 | objectives of the Illinois Solar for All Program in |
| |||||||
| |||||||
1 | accordance with Section 1-56 of this Act. | ||||||
2 | (28) To ensure Illinois residents and business benefit | ||||||
3 | from programs administered by the Agency and are properly | ||||||
4 | protected from any deceptive or misleading marketing | ||||||
5 | practices by participants in the Agency's programs and | ||||||
6 | procurements. | ||||||
7 | (29) To request, review, and accept proposals; execute | ||||||
8 | contracts; and procure energy storage credits. | ||||||
9 | (c) In conducting the procurement of electricity or other | ||||||
10 | products, beginning January 1, 2022, the Agency shall not | ||||||
11 | procure any products or services from persons or organizations | ||||||
12 | that are in violation of the Displaced Energy Workers Bill of | ||||||
13 | Rights, as provided under the Energy Community Reinvestment | ||||||
14 | Act at the time of the procurement event or fail to comply the | ||||||
15 | labor standards established in subparagraph (Q) of paragraph | ||||||
16 | (1) of subsection (c) of Section 1-75. | ||||||
17 | (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24 .)
| ||||||
18 | (20 ILCS 3855/1-75) | ||||||
19 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
20 | and Procurement Bureau has the following duties and | ||||||
21 | responsibilities: | ||||||
22 | (a) The Planning and Procurement Bureau shall each year, | ||||||
23 | beginning in 2008, develop procurement plans and conduct | ||||||
24 | competitive procurement processes in accordance with the | ||||||
25 | requirements of Section 16-111.5 of the Public Utilities Act |
| |||||||
| |||||||
1 | for the eligible retail customers of electric utilities that | ||||||
2 | on December 31, 2005 provided electric service to at least | ||||||
3 | 100,000 customers in Illinois. Beginning with the delivery | ||||||
4 | year commencing on June 1, 2017, the Planning and Procurement | ||||||
5 | Bureau shall develop plans and processes for the procurement | ||||||
6 | of zero emission credits from zero emission facilities in | ||||||
7 | accordance with the requirements of subsection (d-5) of this | ||||||
8 | Section. Beginning on the effective date of this amendatory | ||||||
9 | Act of the 102nd General Assembly, the Planning and | ||||||
10 | Procurement Bureau shall develop plans and processes for the | ||||||
11 | procurement of carbon mitigation credits from carbon-free | ||||||
12 | energy resources in accordance with the requirements of | ||||||
13 | subsection (d-10) of this Section. The Planning and | ||||||
14 | Procurement Bureau shall also develop procurement plans and | ||||||
15 | conduct competitive procurement processes in accordance with | ||||||
16 | the requirements of Section 16-111.5 of the Public Utilities | ||||||
17 | Act for the eligible retail customers of small | ||||||
18 | multi-jurisdictional electric utilities that (i) on December | ||||||
19 | 31, 2005 served less than 100,000 customers in Illinois and | ||||||
20 | (ii) request a procurement plan for their Illinois | ||||||
21 | jurisdictional load. This Section shall not apply to a small | ||||||
22 | multi-jurisdictional utility until such time as a small | ||||||
23 | multi-jurisdictional utility requests the Agency to prepare a | ||||||
24 | procurement plan for their Illinois jurisdictional load. For | ||||||
25 | the purposes of this Section, the term "eligible retail | ||||||
26 | customers" has the same definition as found in Section |
| |||||||
| |||||||
1 | 16-111.5(a) of the Public Utilities Act. | ||||||
2 | Beginning with the plan or plans to be implemented in the | ||||||
3 | 2017 delivery year, the Agency shall no longer include the | ||||||
4 | procurement of renewable energy resources in the annual | ||||||
5 | procurement plans required by this subsection (a), except as | ||||||
6 | provided in subsection (q) of Section 16-111.5 of the Public | ||||||
7 | Utilities Act, and shall instead develop a long-term renewable | ||||||
8 | resources procurement plan in accordance with subsection (c) | ||||||
9 | of this Section and Section 16-111.5 of the Public Utilities | ||||||
10 | Act. | ||||||
11 | In accordance with subsection (c-5) of this Section, the | ||||||
12 | Planning and Procurement Bureau shall oversee the procurement | ||||||
13 | by electric utilities that served more than 300,000 retail | ||||||
14 | customers in this State as of January 1, 2019 of renewable | ||||||
15 | energy credits from new utility-scale solar projects to be | ||||||
16 | installed, along with energy storage facilities, at or | ||||||
17 | adjacent to the sites of electric generating facilities that, | ||||||
18 | as of January 1, 2016, burned coal as their primary fuel | ||||||
19 | source. | ||||||
20 | (1) The Agency shall each year, beginning in 2008, as | ||||||
21 | needed, issue a request for qualifications for experts or | ||||||
22 | expert consulting firms to develop the procurement plans | ||||||
23 | in accordance with Section 16-111.5 of the Public | ||||||
24 | Utilities Act. In order to qualify an expert or expert | ||||||
25 | consulting firm must have: | ||||||
26 | (A) direct previous experience assembling |
| |||||||
| |||||||
1 | large-scale power supply plans or portfolios for | ||||||
2 | end-use customers; | ||||||
3 | (B) an advanced degree in economics, mathematics, | ||||||
4 | engineering, risk management, or a related area of | ||||||
5 | study; | ||||||
6 | (C) 10 years of experience in the electricity | ||||||
7 | sector, including managing supply risk; | ||||||
8 | (D) expertise in wholesale electricity market | ||||||
9 | rules, including those established by the Federal | ||||||
10 | Energy Regulatory Commission and regional transmission | ||||||
11 | organizations; | ||||||
12 | (E) expertise in credit protocols and familiarity | ||||||
13 | with contract protocols; | ||||||
14 | (F) adequate resources to perform and fulfill the | ||||||
15 | required functions and responsibilities; and | ||||||
16 | (G) the absence of a conflict of interest and | ||||||
17 | inappropriate bias for or against potential bidders or | ||||||
18 | the affected electric utilities. | ||||||
19 | (2) The Agency shall each year, as needed, issue a | ||||||
20 | request for qualifications for a procurement administrator | ||||||
21 | to conduct the competitive procurement processes in | ||||||
22 | accordance with Section 16-111.5 of the Public Utilities | ||||||
23 | Act. In order to qualify an expert or expert consulting | ||||||
24 | firm must have: | ||||||
25 | (A) direct previous experience administering a | ||||||
26 | large-scale competitive procurement process; |
| |||||||
| |||||||
1 | (B) an advanced degree in economics, mathematics, | ||||||
2 | engineering, or a related area of study; | ||||||
3 | (C) 10 years of experience in the electricity | ||||||
4 | sector, including risk management experience; | ||||||
5 | (D) expertise in wholesale electricity market | ||||||
6 | rules, including those established by the Federal | ||||||
7 | Energy Regulatory Commission and regional transmission | ||||||
8 | organizations; | ||||||
9 | (E) expertise in credit and contract protocols; | ||||||
10 | (F) adequate resources to perform and fulfill the | ||||||
11 | required functions and responsibilities; and | ||||||
12 | (G) the absence of a conflict of interest and | ||||||
13 | inappropriate bias for or against potential bidders or | ||||||
14 | the affected electric utilities. | ||||||
15 | (3) The Agency shall provide affected utilities and | ||||||
16 | other interested parties with the lists of qualified | ||||||
17 | experts or expert consulting firms identified through the | ||||||
18 | request for qualifications processes that are under | ||||||
19 | consideration to develop the procurement plans and to | ||||||
20 | serve as the procurement administrator. The Agency shall | ||||||
21 | also provide each qualified expert's or expert consulting | ||||||
22 | firm's response to the request for qualifications. All | ||||||
23 | information provided under this subparagraph shall also be | ||||||
24 | provided to the Commission. The Agency may provide by rule | ||||||
25 | for fees associated with supplying the information to | ||||||
26 | utilities and other interested parties. These parties |
| |||||||
| |||||||
1 | shall, within 5 business days, notify the Agency in | ||||||
2 | writing if they object to any experts or expert consulting | ||||||
3 | firms on the lists. Objections shall be based on: | ||||||
4 | (A) failure to satisfy qualification criteria; | ||||||
5 | (B) identification of a conflict of interest; or | ||||||
6 | (C) evidence of inappropriate bias for or against | ||||||
7 | potential bidders or the affected utilities. | ||||||
8 | The Agency shall remove experts or expert consulting | ||||||
9 | firms from the lists within 10 days if there is a | ||||||
10 | reasonable basis for an objection and provide the updated | ||||||
11 | lists to the affected utilities and other interested | ||||||
12 | parties. If the Agency fails to remove an expert or expert | ||||||
13 | consulting firm from a list, an objecting party may seek | ||||||
14 | review by the Commission within 5 days thereafter by | ||||||
15 | filing a petition, and the Commission shall render a | ||||||
16 | ruling on the petition within 10 days. There is no right of | ||||||
17 | appeal of the Commission's ruling. | ||||||
18 | (4) The Agency shall issue requests for proposals to | ||||||
19 | the qualified experts or expert consulting firms to | ||||||
20 | develop a procurement plan for the affected utilities and | ||||||
21 | to serve as procurement administrator. | ||||||
22 | (5) The Agency shall select an expert or expert | ||||||
23 | consulting firm to develop procurement plans based on the | ||||||
24 | proposals submitted and shall award contracts of up to 5 | ||||||
25 | years to those selected. | ||||||
26 | (6) The Agency shall select an expert or expert |
| |||||||
| |||||||
1 | consulting firm, with approval of the Commission, to serve | ||||||
2 | as procurement administrator based on the proposals | ||||||
3 | submitted. If the Commission rejects, within 5 days, the | ||||||
4 | Agency's selection, the Agency shall submit another | ||||||
5 | recommendation within 3 days based on the proposals | ||||||
6 | submitted. The Agency shall award a 5-year contract to the | ||||||
7 | expert or expert consulting firm so selected with | ||||||
8 | Commission approval. | ||||||
9 | (b) The experts or expert consulting firms retained by the | ||||||
10 | Agency shall, as appropriate, prepare procurement plans, and | ||||||
11 | conduct a competitive procurement process as prescribed in | ||||||
12 | Section 16-111.5 of the Public Utilities Act, to ensure | ||||||
13 | adequate, reliable, affordable, efficient, and environmentally | ||||||
14 | sustainable electric service at the lowest total cost over | ||||||
15 | time, taking into account any benefits of price stability, for | ||||||
16 | eligible retail customers of electric utilities that on | ||||||
17 | December 31, 2005 provided electric service to at least | ||||||
18 | 100,000 customers in the State of Illinois, and for eligible | ||||||
19 | Illinois retail customers of small multi-jurisdictional | ||||||
20 | electric utilities that (i) on December 31, 2005 served less | ||||||
21 | than 100,000 customers in Illinois and (ii) request a | ||||||
22 | procurement plan for their Illinois jurisdictional load. | ||||||
23 | (c) Renewable portfolio standard. | ||||||
24 | (1)(A) The Agency shall develop a long-term renewable | ||||||
25 | resources procurement plan that shall include procurement | ||||||
26 | programs and competitive procurement events necessary to |
| |||||||
| |||||||
1 | meet the goals set forth in this subsection (c). The | ||||||
2 | initial long-term renewable resources procurement plan | ||||||
3 | shall be released for comment no later than 160 days after | ||||||
4 | June 1, 2017 (the effective date of Public Act 99-906). | ||||||
5 | The Agency shall review, and may revise on an expedited | ||||||
6 | basis, the long-term renewable resources procurement plan | ||||||
7 | at least every 2 years, which shall be conducted in | ||||||
8 | conjunction with the procurement plan under Section | ||||||
9 | 16-111.5 of the Public Utilities Act to the extent | ||||||
10 | practicable to minimize administrative expense. No later | ||||||
11 | than 120 days after the effective date of this amendatory | ||||||
12 | Act of the 103rd General Assembly, the Agency shall | ||||||
13 | release for comment a revision to the long-term renewable | ||||||
14 | resources procurement plan, updating elements of the most | ||||||
15 | recently approved plan as needed to comply with this | ||||||
16 | amendatory Act of the 103rd General Assembly, and any | ||||||
17 | long-term renewable resources procurement plan update | ||||||
18 | published by the Agency but not yet approved by the | ||||||
19 | Illinois Commerce Commission shall be withdrawn. The | ||||||
20 | long-term renewable resources procurement plans shall be | ||||||
21 | subject to review and approval by the Commission under | ||||||
22 | Section 16-111.5 of the Public Utilities Act. | ||||||
23 | (B) Subject to subparagraph (F) of this paragraph (1), | ||||||
24 | the long-term renewable resources procurement plan shall | ||||||
25 | attempt to meet the goals for procurement of renewable | ||||||
26 | energy credits at levels of at least the following overall |
| |||||||
| |||||||
1 | percentages: 13% by the 2017 delivery year; increasing by | ||||||
2 | at least 1.5% each delivery year thereafter to at least | ||||||
3 | 25% by the 2025 delivery year; increasing by at least 3% | ||||||
4 | each delivery year thereafter to at least 40% by the 2030 | ||||||
5 | delivery year, and continuing at no less than 40% for each | ||||||
6 | delivery year thereafter. The Agency shall attempt to | ||||||
7 | procure 50% by delivery year 2040. The Agency shall | ||||||
8 | determine the annual increase between delivery year 2030 | ||||||
9 | and delivery year 2040, if any, taking into account energy | ||||||
10 | demand, other energy resources, and other public policy | ||||||
11 | goals. In the event of a conflict between these goals and | ||||||
12 | the new wind, new photovoltaic, and hydropower procurement | ||||||
13 | requirements described in items (i) through (iii) of | ||||||
14 | subparagraph (C) of this paragraph (1), the long-term plan | ||||||
15 | shall prioritize compliance with the new wind, new | ||||||
16 | photovoltaic, and hydropower procurement requirements | ||||||
17 | described in items (i) through (iii) of subparagraph (C) | ||||||
18 | of this paragraph (1) over the annual percentage targets | ||||||
19 | described in this subparagraph (B). The Agency shall not | ||||||
20 | comply with the annual percentage targets described in | ||||||
21 | this subparagraph (B) by procuring renewable energy | ||||||
22 | credits that are unlikely to lead to the development of | ||||||
23 | new renewable resources or new, modernized, or retooled | ||||||
24 | hydropower facilities. | ||||||
25 | For the delivery year beginning June 1, 2017, the | ||||||
26 | procurement plan shall attempt to include, subject to the |
| |||||||
| |||||||
1 | prioritization outlined in this subparagraph (B), | ||||||
2 | cost-effective renewable energy resources equal to at | ||||||
3 | least 13% of each utility's load for eligible retail | ||||||
4 | customers and 13% of the applicable portion of each | ||||||
5 | utility's load for retail customers who are not eligible | ||||||
6 | retail customers, which applicable portion shall equal 50% | ||||||
7 | of the utility's load for retail customers who are not | ||||||
8 | eligible retail customers on February 28, 2017. | ||||||
9 | For the delivery year beginning June 1, 2018, the | ||||||
10 | procurement plan shall attempt to include, subject to the | ||||||
11 | prioritization outlined in this subparagraph (B), | ||||||
12 | cost-effective renewable energy resources equal to at | ||||||
13 | least 14.5% of each utility's load for eligible retail | ||||||
14 | customers and 14.5% of the applicable portion of each | ||||||
15 | utility's load for retail customers who are not eligible | ||||||
16 | retail customers, which applicable portion shall equal 75% | ||||||
17 | of the utility's load for retail customers who are not | ||||||
18 | eligible retail customers on February 28, 2017. | ||||||
19 | For the delivery year beginning June 1, 2019, and for | ||||||
20 | each year thereafter, the procurement plans shall attempt | ||||||
21 | to include, subject to the prioritization outlined in this | ||||||
22 | subparagraph (B), cost-effective renewable energy | ||||||
23 | resources equal to a minimum percentage of each utility's | ||||||
24 | load for all retail customers as follows: 16% by June 1, | ||||||
25 | 2019; increasing by 1.5% each year thereafter to 25% by | ||||||
26 | June 1, 2025; and 25% by June 1, 2026; increasing by at |
| |||||||
| |||||||
1 | least 3% each delivery year thereafter to at least 40% by | ||||||
2 | the 2030 delivery year, and continuing at no less than 40% | ||||||
3 | for each delivery year thereafter. The Agency shall | ||||||
4 | attempt to procure 50% by delivery year 2040. The Agency | ||||||
5 | shall determine the annual increase between delivery year | ||||||
6 | 2030 and delivery year 2040, if any, taking into account | ||||||
7 | energy demand, other energy resources, and other public | ||||||
8 | policy goals. | ||||||
9 | For each delivery year, the Agency shall first | ||||||
10 | recognize each utility's obligations for that delivery | ||||||
11 | year under existing contracts. Any renewable energy | ||||||
12 | credits under existing contracts, including renewable | ||||||
13 | energy credits as part of renewable energy resources, | ||||||
14 | shall be used to meet the goals set forth in this | ||||||
15 | subsection (c) for the delivery year. | ||||||
16 | (C) The long-term renewable resources procurement plan | ||||||
17 | described in subparagraph (A) of this paragraph (1) shall | ||||||
18 | include the procurement of renewable energy credits from | ||||||
19 | new projects pursuant to the following terms: | ||||||
20 | (i) At least 10,000,000 renewable energy credits | ||||||
21 | delivered annually by the end of the 2021 delivery | ||||||
22 | year, and increasing ratably to reach 45,000,000 | ||||||
23 | renewable energy credits delivered annually from new | ||||||
24 | wind and solar projects , from repowered wind projects, | ||||||
25 | or from retooled hydropower facilities by the end of | ||||||
26 | delivery year 2030 such that the goals in subparagraph |
| |||||||
| |||||||
1 | (B) of this paragraph (1) are met entirely by | ||||||
2 | procurements of renewable energy credits from new wind | ||||||
3 | and photovoltaic projects. Of that amount, to the | ||||||
4 | extent possible, the Agency shall endeavor to procure | ||||||
5 | 45% from new and repowered wind and hydropower | ||||||
6 | projects and shall procure at least 55% from | ||||||
7 | photovoltaic projects. Of the amount to be procured | ||||||
8 | from photovoltaic projects, the Agency shall procure: | ||||||
9 | at least 50% from solar photovoltaic projects using | ||||||
10 | the program outlined in subparagraph (K) of this | ||||||
11 | paragraph (1) from distributed renewable energy | ||||||
12 | generation devices or community renewable generation | ||||||
13 | projects; at least 47% from utility-scale solar | ||||||
14 | projects; at least 3% from brownfield site | ||||||
15 | photovoltaic projects that are not community renewable | ||||||
16 | generation projects. The Agency may propose | ||||||
17 | adjustments to these percentages, including | ||||||
18 | establishing percentage-based goals for the | ||||||
19 | procurement of renewable energy credits from retooled | ||||||
20 | hydropower facilities and repowered wind projects | ||||||
21 | through its long-term renewable resources plan | ||||||
22 | described in subparagraph (A) of this paragraph (1), | ||||||
23 | as necessary, based on developer interest, market | ||||||
24 | conditions, budget considerations, and other material | ||||||
25 | factors. | ||||||
26 | In developing the long-term renewable resources |
| |||||||
| |||||||
1 | procurement plan, the Agency shall consider other | ||||||
2 | approaches, in addition to competitive procurements, | ||||||
3 | that can be used to procure renewable energy credits | ||||||
4 | from brownfield site photovoltaic projects and thereby | ||||||
5 | help return blighted or contaminated land to | ||||||
6 | productive use while enhancing public health and the | ||||||
7 | well-being of Illinois residents, including those in | ||||||
8 | environmental justice communities, as defined using | ||||||
9 | existing methodologies and findings used by the Agency | ||||||
10 | and its Administrator in its Illinois Solar for All | ||||||
11 | Program. The Agency shall also consider other | ||||||
12 | approaches, in addition to competitive procurements, | ||||||
13 | to procure renewable energy credits from new and | ||||||
14 | existing hydropower facilities to support the | ||||||
15 | development and maintenance of these facilities. The | ||||||
16 | Agency shall explore options to convert existing dams | ||||||
17 | but shall not consider approaches to develop new dams | ||||||
18 | where they do not already exist. To encourage | ||||||
19 | continued operation of utility-scale wind projects, | ||||||
20 | the Agency shall consider and may propose other | ||||||
21 | approaches in addition to competitive procurements to | ||||||
22 | procure renewable energy credits from repowered wind | ||||||
23 | projects. | ||||||
24 | (ii) In any given delivery year, if forecasted | ||||||
25 | expenses are less than the maximum budget available | ||||||
26 | under subparagraph (E) of this paragraph (1), the |
| |||||||
| |||||||
1 | Agency shall continue to procure new renewable energy | ||||||
2 | credits until that budget is exhausted in the manner | ||||||
3 | outlined in item (i) of this subparagraph (C). | ||||||
4 | (iii) For purposes of this Section: | ||||||
5 | "New wind projects" means wind renewable energy | ||||||
6 | facilities that are energized after June 1, 2017 for | ||||||
7 | the delivery year commencing June 1, 2017. | ||||||
8 | "New photovoltaic projects" means photovoltaic | ||||||
9 | renewable energy facilities that are energized after | ||||||
10 | June 1, 2017. Photovoltaic projects developed under | ||||||
11 | Section 1-56 of this Act shall not apply towards the | ||||||
12 | new photovoltaic project requirements in this | ||||||
13 | subparagraph (C). | ||||||
14 | For purposes of calculating whether the Agency has | ||||||
15 | procured enough new wind and solar renewable energy | ||||||
16 | credits required by this subparagraph (C), renewable | ||||||
17 | energy facilities that have a multi-year renewable | ||||||
18 | energy credit delivery contract with the utility | ||||||
19 | through at least delivery year 2030 shall be | ||||||
20 | considered new, however no renewable energy credits | ||||||
21 | from contracts entered into before June 1, 2021 shall | ||||||
22 | be used to calculate whether the Agency has procured | ||||||
23 | the correct proportion of new wind and new solar | ||||||
24 | contracts described in this subparagraph (C) for | ||||||
25 | delivery year 2021 and thereafter. | ||||||
26 | (D) Renewable energy credits shall be cost effective. |
| |||||||
| |||||||
1 | For purposes of this subsection (c), "cost effective" | ||||||
2 | means that the costs of procuring renewable energy | ||||||
3 | resources do not cause the limit stated in subparagraph | ||||||
4 | (E) of this paragraph (1) to be exceeded and, for | ||||||
5 | renewable energy credits procured through a competitive | ||||||
6 | procurement event, do not exceed benchmarks based on | ||||||
7 | market prices for like products in the region. For | ||||||
8 | purposes of this subsection (c), "like products" means | ||||||
9 | contracts for renewable energy credits from the same or | ||||||
10 | substantially similar technology, same or substantially | ||||||
11 | similar vintage (new or existing), the same or | ||||||
12 | substantially similar quantity, and the same or | ||||||
13 | substantially similar contract length and structure. | ||||||
14 | Benchmarks shall reflect development, financing, or | ||||||
15 | related costs resulting from requirements imposed through | ||||||
16 | other provisions of State law, including, but not limited | ||||||
17 | to, requirements in subparagraphs (P) and (Q) of this | ||||||
18 | paragraph (1) and the Renewable Energy Facilities | ||||||
19 | Agricultural Impact Mitigation Act. Confidential | ||||||
20 | benchmarks shall be developed by the procurement | ||||||
21 | administrator, in consultation with the Commission staff, | ||||||
22 | Agency staff, and the procurement monitor and shall be | ||||||
23 | subject to Commission review and approval. If price | ||||||
24 | benchmarks for like products in the region are not | ||||||
25 | available, the procurement administrator shall establish | ||||||
26 | price benchmarks based on publicly available data on |
| |||||||
| |||||||
1 | regional technology costs and expected current and future | ||||||
2 | regional energy prices. Prior to a procurement, the Agency | ||||||
3 | shall ensure that the procurement administrator considers | ||||||
4 | comments from potential bidders regarding inputs, | ||||||
5 | structure, and methodology of the benchmark for the | ||||||
6 | procurement, including costs and risks of development, | ||||||
7 | construction, financing, or other categories as determined | ||||||
8 | by the Agency. In the request for comments on the | ||||||
9 | benchmark, the procurement administrator shall provide all | ||||||
10 | potential bidders with sufficient information about the | ||||||
11 | structure, methodology, and inputs for previous benchmarks | ||||||
12 | to allow for informed comment. The benchmarks in this | ||||||
13 | Section shall not be used to curtail or otherwise reduce | ||||||
14 | contractual obligations entered into by or through the | ||||||
15 | Agency prior to June 1, 2017 (the effective date of Public | ||||||
16 | Act 99-906). | ||||||
17 | (E) For purposes of this subsection (c), the required | ||||||
18 | procurement of cost-effective renewable energy resources | ||||||
19 | for a particular year commencing prior to June 1, 2017 | ||||||
20 | shall be measured as a percentage of the actual amount of | ||||||
21 | electricity (megawatt-hours) supplied by the electric | ||||||
22 | utility to eligible retail customers in the delivery year | ||||||
23 | ending immediately prior to the procurement, and, for | ||||||
24 | delivery years commencing on and after June 1, 2017, the | ||||||
25 | required procurement of cost-effective renewable energy | ||||||
26 | resources for a particular year shall be measured as a |
| |||||||
| |||||||
1 | percentage of the actual amount of electricity | ||||||
2 | (megawatt-hours) delivered by the electric utility in the | ||||||
3 | delivery year ending immediately prior to the procurement, | ||||||
4 | to all retail customers in its service territory. For | ||||||
5 | purposes of this subsection (c), the amount paid per | ||||||
6 | kilowatthour means the total amount paid for electric | ||||||
7 | service expressed on a per kilowatthour basis. For | ||||||
8 | purposes of this subsection (c), the total amount paid for | ||||||
9 | electric service includes without limitation amounts paid | ||||||
10 | for supply, transmission, capacity, distribution, | ||||||
11 | surcharges, and add-on taxes. | ||||||
12 | Notwithstanding the requirements of this subsection | ||||||
13 | (c), the total of renewable energy resources procured | ||||||
14 | under the procurement plan for any single year shall be | ||||||
15 | subject to the limitations of this subparagraph (E). Such | ||||||
16 | procurement shall be reduced for all retail customers | ||||||
17 | based on the amount necessary to limit the annual | ||||||
18 | estimated average net increase due to the costs of these | ||||||
19 | resources included in the amounts paid by eligible retail | ||||||
20 | customers in connection with electric service to no more | ||||||
21 | than 4.25% of the amount paid per kilowatthour by those | ||||||
22 | customers during the year ending May 31, 2009. To arrive | ||||||
23 | at a maximum dollar amount of renewable energy resources | ||||||
24 | to be procured for the particular delivery year, the | ||||||
25 | resulting per kilowatthour amount shall be applied to the | ||||||
26 | actual amount of kilowatthours of electricity delivered, |
| |||||||
| |||||||
1 | or applicable portion of such amount as specified in | ||||||
2 | paragraph (1) of this subsection (c), as applicable, by | ||||||
3 | the electric utility in the delivery year immediately | ||||||
4 | prior to the procurement to all retail customers in its | ||||||
5 | service territory. The calculations required by this | ||||||
6 | subparagraph (E) shall be made only once for each delivery | ||||||
7 | year at the time that the renewable energy resources are | ||||||
8 | procured. Once the determination as to the amount of | ||||||
9 | renewable energy resources to procure is made based on the | ||||||
10 | calculations set forth in this subparagraph (E) and the | ||||||
11 | contracts procuring those amounts are executed, no | ||||||
12 | subsequent rate impact determinations shall be made and no | ||||||
13 | adjustments to those contract amounts shall be allowed. | ||||||
14 | All costs incurred under such contracts shall be fully | ||||||
15 | recoverable by the electric utility as provided in this | ||||||
16 | Section. If the limitation on the amount of renewable | ||||||
17 | energy resources procured in this subparagraph (E) would | ||||||
18 | prevent the Agency from meeting the obligations of | ||||||
19 | existing contracts, then the Agency shall use additional | ||||||
20 | funds collected under subsection (k) of Section 16-108 of | ||||||
21 | the Public Utilities Act if so authorized by the | ||||||
22 | Commission in approving the Agency's long-term renewable | ||||||
23 | resources procurement plan. If the Agency notifies the | ||||||
24 | Commission that its existing contractual obligations are | ||||||
25 | reasonably expected to exceed the maximum collection | ||||||
26 | authorized under this subparagraph (E), then the Agency |
| |||||||
| |||||||
1 | shall suspend or reduce new procurements until a new rate | ||||||
2 | impact determination is made pursuant to this subparagraph | ||||||
3 | (E). The utilities shall be entitled to recover the total | ||||||
4 | cost associated with procuring renewable energy credits | ||||||
5 | required by this Section regardless of whether the costs | ||||||
6 | are subject to the limitations described in this | ||||||
7 | subparagraph (E) through the automatic adjustment clause | ||||||
8 | tariff under subsection (k) of Section 16-108 of the | ||||||
9 | Public Utilities Act. | ||||||
10 | (F) If the limitation on the amount of renewable | ||||||
11 | energy resources procured in subparagraph (E) of this | ||||||
12 | paragraph (1) prevents the Agency from meeting all of the | ||||||
13 | goals in this subsection (c), the Agency's long-term plan | ||||||
14 | shall prioritize compliance with the requirements of this | ||||||
15 | subsection (c) regarding renewable energy credits in the | ||||||
16 | following order: | ||||||
17 | (i) renewable energy credits under existing | ||||||
18 | contractual obligations as of June 1, 2021; | ||||||
19 | (i-5) funding for the Illinois Solar for All | ||||||
20 | Program, as described in subparagraph (O) of this | ||||||
21 | paragraph (1); | ||||||
22 | (ii) renewable energy credits necessary to comply | ||||||
23 | with the new wind and new photovoltaic procurement | ||||||
24 | requirements described in items (i) through (iii) of | ||||||
25 | subparagraph (C) of this paragraph (1); and | ||||||
26 | (iii) renewable energy credits necessary to meet |
| |||||||
| |||||||
1 | the remaining requirements of this subsection (c). | ||||||
2 | (G) The following provisions shall apply to the | ||||||
3 | Agency's procurement of renewable energy credits under | ||||||
4 | this subsection (c): | ||||||
5 | (i) Notwithstanding whether a long-term renewable | ||||||
6 | resources procurement plan has been approved, the | ||||||
7 | Agency shall conduct an initial forward procurement | ||||||
8 | for renewable energy credits from new utility-scale | ||||||
9 | wind projects within 160 days after June 1, 2017 (the | ||||||
10 | effective date of Public Act 99-906). For the purposes | ||||||
11 | of this initial forward procurement, the Agency shall | ||||||
12 | solicit 15-year contracts for delivery of 1,000,000 | ||||||
13 | renewable energy credits delivered annually from new | ||||||
14 | utility-scale wind projects to begin delivery on June | ||||||
15 | 1, 2019, if available, but not later than June 1, 2021, | ||||||
16 | unless the project has delays in the establishment of | ||||||
17 | an operating interconnection with the applicable | ||||||
18 | transmission or distribution system as a result of the | ||||||
19 | actions or inactions of the transmission or | ||||||
20 | distribution provider, or other causes for force | ||||||
21 | majeure as outlined in the procurement contract, in | ||||||
22 | which case, not later than June 1, 2022. Payments to | ||||||
23 | suppliers of renewable energy credits shall commence | ||||||
24 | upon delivery. Renewable energy credits procured under | ||||||
25 | this initial procurement shall be included in the | ||||||
26 | Agency's long-term plan and shall apply to all |
| |||||||
| |||||||
1 | renewable energy goals in this subsection (c). | ||||||
2 | (ii) Notwithstanding whether a long-term renewable | ||||||
3 | resources procurement plan has been approved, the | ||||||
4 | Agency shall conduct an initial forward procurement | ||||||
5 | for renewable energy credits from new utility-scale | ||||||
6 | solar projects and brownfield site photovoltaic | ||||||
7 | projects within one year after June 1, 2017 (the | ||||||
8 | effective date of Public Act 99-906). For the purposes | ||||||
9 | of this initial forward procurement, the Agency shall | ||||||
10 | solicit 15-year contracts for delivery of 1,000,000 | ||||||
11 | renewable energy credits delivered annually from new | ||||||
12 | utility-scale solar projects and brownfield site | ||||||
13 | photovoltaic projects to begin delivery on June 1, | ||||||
14 | 2019, if available, but not later than June 1, 2021, | ||||||
15 | unless the project has delays in the establishment of | ||||||
16 | an operating interconnection with the applicable | ||||||
17 | transmission or distribution system as a result of the | ||||||
18 | actions or inactions of the transmission or | ||||||
19 | distribution provider, or other causes for force | ||||||
20 | majeure as outlined in the procurement contract, in | ||||||
21 | which case, not later than June 1, 2022. The Agency may | ||||||
22 | structure this initial procurement in one or more | ||||||
23 | discrete procurement events. Payments to suppliers of | ||||||
24 | renewable energy credits shall commence upon delivery. | ||||||
25 | Renewable energy credits procured under this initial | ||||||
26 | procurement shall be included in the Agency's |
| |||||||
| |||||||
1 | long-term plan and shall apply to all renewable energy | ||||||
2 | goals in this subsection (c). | ||||||
3 | (iii) Notwithstanding whether the Commission has | ||||||
4 | approved the periodic long-term renewable resources | ||||||
5 | procurement plan revision described in Section | ||||||
6 | 16-111.5 of the Public Utilities Act, the Agency shall | ||||||
7 | conduct at least one subsequent forward procurement | ||||||
8 | for renewable energy credits from new utility-scale | ||||||
9 | wind projects, new utility-scale solar projects, and | ||||||
10 | new brownfield site photovoltaic projects within 240 | ||||||
11 | days after the effective date of this amendatory Act | ||||||
12 | of the 102nd General Assembly in quantities necessary | ||||||
13 | to meet the requirements of subparagraph (C) of this | ||||||
14 | paragraph (1) through the delivery year beginning June | ||||||
15 | 1, 2021. | ||||||
16 | (iv) Notwithstanding whether the Commission has | ||||||
17 | approved the periodic long-term renewable resources | ||||||
18 | procurement plan revision described in Section | ||||||
19 | 16-111.5 of the Public Utilities Act, the Agency shall | ||||||
20 | open capacity for each category in the Adjustable | ||||||
21 | Block program within 90 days after the effective date | ||||||
22 | of this amendatory Act of the 102nd General Assembly | ||||||
23 | manner: | ||||||
24 | (1) The Agency shall open the first block of | ||||||
25 | annual capacity for the category described in item | ||||||
26 | (i) of subparagraph (K) of this paragraph (1). The |
| |||||||
| |||||||
1 | first block of annual capacity for item (i) shall | ||||||
2 | be for at least 75 megawatts of total nameplate | ||||||
3 | capacity. The price of the renewable energy credit | ||||||
4 | for this block of capacity shall be 4% less than | ||||||
5 | the price of the last open block in this category. | ||||||
6 | Projects on a waitlist shall be awarded contracts | ||||||
7 | first in the order in which they appear on the | ||||||
8 | waitlist. Notwithstanding anything to the | ||||||
9 | contrary, for those renewable energy credits that | ||||||
10 | qualify and are procured under this subitem (1) of | ||||||
11 | this item (iv), the renewable energy credit | ||||||
12 | delivery contract value shall be paid in full, | ||||||
13 | based on the estimated generation during the first | ||||||
14 | 15 years of operation, by the contracting | ||||||
15 | utilities at the time that the facility producing | ||||||
16 | the renewable energy credits is interconnected at | ||||||
17 | the distribution system level of the utility and | ||||||
18 | verified as energized and in compliance by the | ||||||
19 | Program Administrator. The electric utility shall | ||||||
20 | receive and retire all renewable energy credits | ||||||
21 | generated by the project for the first 15 years of | ||||||
22 | operation. Renewable energy credits generated by | ||||||
23 | the project thereafter shall not be transferred | ||||||
24 | under the renewable energy credit delivery | ||||||
25 | contract with the counterparty electric utility. | ||||||
26 | (2) The Agency shall open the first block of |
| |||||||
| |||||||
1 | annual capacity for the category described in item | ||||||
2 | (ii) of subparagraph (K) of this paragraph (1). | ||||||
3 | The first block of annual capacity for item (ii) | ||||||
4 | shall be for at least 75 megawatts of total | ||||||
5 | nameplate capacity. | ||||||
6 | (A) The price of the renewable energy | ||||||
7 | credit for any project on a waitlist for this | ||||||
8 | category before the opening of this block | ||||||
9 | shall be 4% less than the price of the last | ||||||
10 | open block in this category. Projects on the | ||||||
11 | waitlist shall be awarded contracts first in | ||||||
12 | the order in which they appear on the | ||||||
13 | waitlist. Any projects that are less than or | ||||||
14 | equal to 25 kilowatts in size on the waitlist | ||||||
15 | for this capacity shall be moved to the | ||||||
16 | waitlist for paragraph (1) of this item (iv). | ||||||
17 | Notwithstanding anything to the contrary, | ||||||
18 | projects that were on the waitlist prior to | ||||||
19 | opening of this block shall not be required to | ||||||
20 | be in compliance with the requirements of | ||||||
21 | subparagraph (Q) of this paragraph (1) of this | ||||||
22 | subsection (c). Notwithstanding anything to | ||||||
23 | the contrary, for those renewable energy | ||||||
24 | credits procured from projects that were on | ||||||
25 | the waitlist for this category before the | ||||||
26 | opening of this block 20% of the renewable |
| |||||||
| |||||||
1 | energy credit delivery contract value, based | ||||||
2 | on the estimated generation during the first | ||||||
3 | 15 years of operation, shall be paid by the | ||||||
4 | contracting utilities at the time that the | ||||||
5 | facility producing the renewable energy | ||||||
6 | credits is interconnected at the distribution | ||||||
7 | system level of the utility and verified as | ||||||
8 | energized by the Program Administrator. The | ||||||
9 | remaining portion shall be paid ratably over | ||||||
10 | the subsequent 4-year period. The electric | ||||||
11 | utility shall receive and retire all renewable | ||||||
12 | energy credits generated by the project during | ||||||
13 | the first 15 years of operation. Renewable | ||||||
14 | energy credits generated by the project | ||||||
15 | thereafter shall not be transferred under the | ||||||
16 | renewable energy credit delivery contract with | ||||||
17 | the counterparty electric utility. | ||||||
18 | (B) The price of renewable energy credits | ||||||
19 | for any project not on the waitlist for this | ||||||
20 | category before the opening of the block shall | ||||||
21 | be determined and published by the Agency. | ||||||
22 | Projects not on a waitlist as of the opening | ||||||
23 | of this block shall be subject to the | ||||||
24 | requirements of subparagraph (Q) of this | ||||||
25 | paragraph (1), as applicable. Projects not on | ||||||
26 | a waitlist as of the opening of this block |
| |||||||
| |||||||
1 | shall be subject to the contract provisions | ||||||
2 | outlined in item (iii) of subparagraph (L) of | ||||||
3 | this paragraph (1). The Agency shall strive to | ||||||
4 | publish updated prices and an updated | ||||||
5 | renewable energy credit delivery contract as | ||||||
6 | quickly as possible. | ||||||
7 | (3) For opening the first 2 blocks of annual | ||||||
8 | capacity for projects participating in item (iii) | ||||||
9 | of subparagraph (K) of paragraph (1) of subsection | ||||||
10 | (c), projects shall be selected exclusively from | ||||||
11 | those projects on the ordinal waitlists of | ||||||
12 | community renewable generation projects | ||||||
13 | established by the Agency based on the status of | ||||||
14 | those ordinal waitlists as of December 31, 2020, | ||||||
15 | and only those projects previously determined to | ||||||
16 | be eligible for the Agency's April 2019 community | ||||||
17 | solar project selection process. | ||||||
18 | The first 2 blocks of annual capacity for item | ||||||
19 | (iii) shall be for 250 megawatts of total | ||||||
20 | nameplate capacity, with both blocks opening | ||||||
21 | simultaneously under the schedule outlined in the | ||||||
22 | paragraphs below. Projects shall be selected as | ||||||
23 | follows: | ||||||
24 | (A) The geographic balance of selected | ||||||
25 | projects shall follow the Group classification | ||||||
26 | found in the Agency's Revised Long-Term |
| |||||||
| |||||||
1 | Renewable Resources Procurement Plan, with 70% | ||||||
2 | of capacity allocated to projects on the Group | ||||||
3 | B waitlist and 30% of capacity allocated to | ||||||
4 | projects on the Group A waitlist. | ||||||
5 | (B) Contract awards for waitlisted | ||||||
6 | projects shall be allocated proportionate to | ||||||
7 | the total nameplate capacity amount across | ||||||
8 | both ordinal waitlists associated with that | ||||||
9 | applicant firm or its affiliates, subject to | ||||||
10 | the following conditions. | ||||||
11 | (i) Each applicant firm having a | ||||||
12 | waitlisted project eligible for selection | ||||||
13 | shall receive no less than 500 kilowatts | ||||||
14 | in awarded capacity across all groups, and | ||||||
15 | no approved vendor may receive more than | ||||||
16 | 20% of each Group's waitlist allocation. | ||||||
17 | (ii) Each applicant firm, upon | ||||||
18 | receiving an award of program capacity | ||||||
19 | proportionate to its waitlisted capacity, | ||||||
20 | may then determine which waitlisted | ||||||
21 | projects it chooses to be selected for a | ||||||
22 | contract award up to that capacity amount. | ||||||
23 | (iii) Assuming all other program | ||||||
24 | requirements are met, applicant firms may | ||||||
25 | adjust the nameplate capacity of applicant | ||||||
26 | projects without losing waitlist |
| |||||||
| |||||||
1 | eligibility, so long as no project is | ||||||
2 | greater than 2,000 kilowatts in size. | ||||||
3 | (iv) Assuming all other program | ||||||
4 | requirements are met, applicant firms may | ||||||
5 | adjust the expected production associated | ||||||
6 | with applicant projects, subject to | ||||||
7 | verification by the Program Administrator. | ||||||
8 | (C) After a review of affiliate | ||||||
9 | information and the current ordinal waitlists, | ||||||
10 | the Agency shall announce the nameplate | ||||||
11 | capacity award amounts associated with | ||||||
12 | applicant firms no later than 90 days after | ||||||
13 | the effective date of this amendatory Act of | ||||||
14 | the 102nd General Assembly. | ||||||
15 | (D) Applicant firms shall submit their | ||||||
16 | portfolio of projects used to satisfy those | ||||||
17 | contract awards no less than 90 days after the | ||||||
18 | Agency's announcement. The total nameplate | ||||||
19 | capacity of all projects used to satisfy that | ||||||
20 | portfolio shall be no greater than the | ||||||
21 | Agency's nameplate capacity award amount | ||||||
22 | associated with that applicant firm. An | ||||||
23 | applicant firm may decline, in whole or in | ||||||
24 | part, its nameplate capacity award without | ||||||
25 | penalty, with such unmet capacity rolled over | ||||||
26 | to the next block opening for project |
| |||||||
| |||||||
1 | selection under item (iii) of subparagraph (K) | ||||||
2 | of this subsection (c). Any projects not | ||||||
3 | included in an applicant firm's portfolio may | ||||||
4 | reapply without prejudice upon the next block | ||||||
5 | reopening for project selection under item | ||||||
6 | (iii) of subparagraph (K) of this subsection | ||||||
7 | (c). | ||||||
8 | (E) The renewable energy credit delivery | ||||||
9 | contract shall be subject to the contract and | ||||||
10 | payment terms outlined in item (iv) of | ||||||
11 | subparagraph (L) of this subsection (c). | ||||||
12 | Contract instruments used for this | ||||||
13 | subparagraph shall contain the following | ||||||
14 | terms: | ||||||
15 | (i) Renewable energy credit prices | ||||||
16 | shall be fixed, without further adjustment | ||||||
17 | under any other provision of this Act or | ||||||
18 | for any other reason, at 10% lower than | ||||||
19 | prices applicable to the last open block | ||||||
20 | for this category, inclusive of any adders | ||||||
21 | available for achieving a minimum of 50% | ||||||
22 | of subscribers to the project's nameplate | ||||||
23 | capacity being residential or small | ||||||
24 | commercial customers with subscriptions of | ||||||
25 | below 25 kilowatts in size; | ||||||
26 | (ii) A requirement that a minimum of |
| |||||||
| |||||||
1 | 50% of subscribers to the project's | ||||||
2 | nameplate capacity be residential or small | ||||||
3 | commercial customers with subscriptions of | ||||||
4 | below 25 kilowatts in size; | ||||||
5 | (iii) Permission for the ability of a | ||||||
6 | contract holder to substitute projects | ||||||
7 | with other waitlisted projects without | ||||||
8 | penalty should a project receive a | ||||||
9 | non-binding estimate of costs to construct | ||||||
10 | the interconnection facilities and any | ||||||
11 | required distribution upgrades associated | ||||||
12 | with that project of greater than 30 cents | ||||||
13 | per watt AC of that project's nameplate | ||||||
14 | capacity. In developing the applicable | ||||||
15 | contract instrument, the Agency may | ||||||
16 | consider whether other circumstances | ||||||
17 | outside of the control of the applicant | ||||||
18 | firm should also warrant project | ||||||
19 | substitution rights. | ||||||
20 | The Agency shall publish a finalized | ||||||
21 | updated renewable energy credit delivery | ||||||
22 | contract developed consistent with these terms | ||||||
23 | and conditions no less than 30 days before | ||||||
24 | applicant firms must submit their portfolio of | ||||||
25 | projects pursuant to item (D). | ||||||
26 | (F) To be eligible for an award, the |
| |||||||
| |||||||
1 | applicant firm shall certify that not less | ||||||
2 | than prevailing wage, as determined pursuant | ||||||
3 | to the Illinois Prevailing Wage Act, was or | ||||||
4 | will be paid to employees who are engaged in | ||||||
5 | construction activities associated with a | ||||||
6 | selected project. | ||||||
7 | (4) The Agency shall open the first block of | ||||||
8 | annual capacity for the category described in item | ||||||
9 | (iv) of subparagraph (K) of this paragraph (1). | ||||||
10 | The first block of annual capacity for item (iv) | ||||||
11 | shall be for at least 50 megawatts of total | ||||||
12 | nameplate capacity. Renewable energy credit prices | ||||||
13 | shall be fixed, without further adjustment under | ||||||
14 | any other provision of this Act or for any other | ||||||
15 | reason, at the price in the last open block in the | ||||||
16 | category described in item (ii) of subparagraph | ||||||
17 | (K) of this paragraph (1). Pricing for future | ||||||
18 | blocks of annual capacity for this category may be | ||||||
19 | adjusted in the Agency's second revision to its | ||||||
20 | Long-Term Renewable Resources Procurement Plan. | ||||||
21 | Projects in this category shall be subject to the | ||||||
22 | contract terms outlined in item (iv) of | ||||||
23 | subparagraph (L) of this paragraph (1). | ||||||
24 | (5) The Agency shall open the equivalent of 2 | ||||||
25 | years of annual capacity for the category | ||||||
26 | described in item (v) of subparagraph (K) of this |
| |||||||
| |||||||
1 | paragraph (1). The first block of annual capacity | ||||||
2 | for item (v) shall be for at least 10 megawatts of | ||||||
3 | total nameplate capacity. Notwithstanding the | ||||||
4 | provisions of item (v) of subparagraph (K) of this | ||||||
5 | paragraph (1), for the purpose of this initial | ||||||
6 | block, the agency shall accept new project | ||||||
7 | applications intended to increase the diversity of | ||||||
8 | areas hosting community solar projects, the | ||||||
9 | business models of projects, and the size of | ||||||
10 | projects, as described by the Agency in its | ||||||
11 | long-term renewable resources procurement plan | ||||||
12 | that is approved as of the effective date of this | ||||||
13 | amendatory Act of the 102nd General Assembly. | ||||||
14 | Projects in this category shall be subject to the | ||||||
15 | contract terms outlined in item (iii) of | ||||||
16 | subsection (L) of this paragraph (1). | ||||||
17 | (6) The Agency shall open the first blocks of | ||||||
18 | annual capacity for the category described in item | ||||||
19 | (vi) of subparagraph (K) of this paragraph (1), | ||||||
20 | with allocations of capacity within the block | ||||||
21 | generally matching the historical share of block | ||||||
22 | capacity allocated between the category described | ||||||
23 | in items (i) and (ii) of subparagraph (K) of this | ||||||
24 | paragraph (1). The first two blocks of annual | ||||||
25 | capacity for item (vi) shall be for at least 75 | ||||||
26 | megawatts of total nameplate capacity. The price |
| |||||||
| |||||||
1 | of renewable energy credits for the blocks of | ||||||
2 | capacity shall be 4% less than the price of the | ||||||
3 | last open blocks in the categories described in | ||||||
4 | items (i) and (ii) of subparagraph (K) of this | ||||||
5 | paragraph (1). Pricing for future blocks of annual | ||||||
6 | capacity for this category may be adjusted in the | ||||||
7 | Agency's second revision to its Long-Term | ||||||
8 | Renewable Resources Procurement Plan. Projects in | ||||||
9 | this category shall be subject to the applicable | ||||||
10 | contract terms outlined in items (ii) and (iii) of | ||||||
11 | subparagraph (L) of this paragraph (1). | ||||||
12 | (v) Upon the effective date of this amendatory Act | ||||||
13 | of the 102nd General Assembly, for all competitive | ||||||
14 | procurements and any procurements of renewable energy | ||||||
15 | credit from new utility-scale wind and new | ||||||
16 | utility-scale photovoltaic projects, the Agency shall | ||||||
17 | procure indexed renewable energy credits and direct | ||||||
18 | respondents to offer a strike price. | ||||||
19 | (1) The purchase price of the indexed | ||||||
20 | renewable energy credit payment shall be | ||||||
21 | calculated for each settlement period. That | ||||||
22 | payment, for any settlement period, shall be equal | ||||||
23 | to the difference resulting from subtracting the | ||||||
24 | strike price from the index price for that | ||||||
25 | settlement period. If this difference results in a | ||||||
26 | negative number, the indexed REC counterparty |
| |||||||
| |||||||
1 | shall owe the seller the absolute value multiplied | ||||||
2 | by the quantity of energy produced in the relevant | ||||||
3 | settlement period. If this difference results in a | ||||||
4 | positive number, the seller shall owe the indexed | ||||||
5 | REC counterparty this amount multiplied by the | ||||||
6 | quantity of energy produced in the relevant | ||||||
7 | settlement period. | ||||||
8 | (2) Parties shall cash settle every month, | ||||||
9 | summing up all settlements (both positive and | ||||||
10 | negative, if applicable) for the prior month. | ||||||
11 | (3) To ensure funding in the annual budget | ||||||
12 | established under subparagraph (E) for indexed | ||||||
13 | renewable energy credit procurements for each year | ||||||
14 | of the term of such contracts, which must have a | ||||||
15 | minimum tenure of 20 calendar years, the | ||||||
16 | procurement administrator, Agency, Commission | ||||||
17 | staff, and procurement monitor shall quantify the | ||||||
18 | annual cost of the contract by utilizing an | ||||||
19 | industry-standard, third-party forward price curve | ||||||
20 | for energy at the appropriate hub or load zone, | ||||||
21 | including the estimated magnitude and timing of | ||||||
22 | the price effects related to federal carbon | ||||||
23 | controls. Each forward price curve shall contain a | ||||||
24 | specific value of the forecasted market price of | ||||||
25 | electricity for each annual delivery year of the | ||||||
26 | contract. For procurement planning purposes, the |
| |||||||
| |||||||
1 | impact on the annual budget for the cost of | ||||||
2 | indexed renewable energy credits for each delivery | ||||||
3 | year shall be determined as the expected annual | ||||||
4 | contract expenditure for that year, equaling the | ||||||
5 | difference between (i) the sum across all relevant | ||||||
6 | contracts of the applicable strike price | ||||||
7 | multiplied by contract quantity and (ii) the sum | ||||||
8 | across all relevant contracts of the forward price | ||||||
9 | curve for the applicable load zone for that year | ||||||
10 | multiplied by contract quantity. The contracting | ||||||
11 | utility shall not assume an obligation in excess | ||||||
12 | of the estimated annual cost of the contracts for | ||||||
13 | indexed renewable energy credits. Forward curves | ||||||
14 | shall be revised on an annual basis as updated | ||||||
15 | forward price curves are released and filed with | ||||||
16 | the Commission in the proceeding approving the | ||||||
17 | Agency's most recent long-term renewable resources | ||||||
18 | procurement plan. If the expected contract spend | ||||||
19 | is higher or lower than the total quantity of | ||||||
20 | contracts multiplied by the forward price curve | ||||||
21 | value for that year, the forward price curve shall | ||||||
22 | be updated by the procurement administrator, in | ||||||
23 | consultation with the Agency, Commission staff, | ||||||
24 | and procurement monitors, using then-currently | ||||||
25 | available price forecast data and additional | ||||||
26 | budget dollars shall be obligated or reobligated |
| |||||||
| |||||||
1 | as appropriate. | ||||||
2 | (4) To ensure that indexed renewable energy | ||||||
3 | credit prices remain predictable and affordable, | ||||||
4 | the Agency may consider the institution of a price | ||||||
5 | collar on REC prices paid under indexed renewable | ||||||
6 | energy credit procurements establishing floor and | ||||||
7 | ceiling REC prices applicable to indexed REC | ||||||
8 | contract prices. Any price collars applicable to | ||||||
9 | indexed REC procurements shall be proposed by the | ||||||
10 | Agency through its long-term renewable resources | ||||||
11 | procurement plan. | ||||||
12 | (vi) All procurements under this subparagraph (G), | ||||||
13 | including the procurement of renewable energy credits | ||||||
14 | from hydropower facilities, shall comply with the | ||||||
15 | geographic requirements in subparagraph (I) of this | ||||||
16 | paragraph (1) and shall follow the procurement | ||||||
17 | processes and procedures described in this Section and | ||||||
18 | Section 16-111.5 of the Public Utilities Act to the | ||||||
19 | extent practicable, and these processes and procedures | ||||||
20 | may be expedited to accommodate the schedule | ||||||
21 | established by this subparagraph (G). To ensure the | ||||||
22 | successful development of new utility-scale solar | ||||||
23 | projects and new utility-scale wind projects for | ||||||
24 | procurements under items (i), (ii), (iii), and (v) of | ||||||
25 | this subparagraph (G), a winning bidder or the current | ||||||
26 | seller under contract countersigned by an electric |
| |||||||
| |||||||
1 | utility counterparty may petition the Commission to | ||||||
2 | revise the terms in the contract. Prior to such | ||||||
3 | petition, upon request by the winning bidder or | ||||||
4 | seller, the Agency shall negotiate directly with the | ||||||
5 | winning bidder or seller. If following the direct | ||||||
6 | negotiations, the Agency and the winning bidder reach | ||||||
7 | an agreement on amended terms or strike price and the | ||||||
8 | Agency finds that the amended terms or strike price | ||||||
9 | reflect a change in circumstances since the date of | ||||||
10 | the bid based on circumstances unforeseeable at the | ||||||
11 | time of the bid, upon petition by the winning bidder or | ||||||
12 | current seller, the Commission shall issue an order | ||||||
13 | directing the utility counterparty to execute a form | ||||||
14 | amendment drafted by the Agency with the revised terms | ||||||
15 | or the new strike price. The Agency shall provide the | ||||||
16 | amendment to the utility within 15 business days after | ||||||
17 | the Commission's order and the utility buyer shall | ||||||
18 | execute the amendment not more than 7 calendar days | ||||||
19 | after delivery by the Agency. The Agency shall develop | ||||||
20 | the form amendment following comment by interested | ||||||
21 | parties. | ||||||
22 | (vii) On and after the effective date of this | ||||||
23 | amendatory Act of the 103rd General Assembly, for all | ||||||
24 | procurements of renewable energy credits from | ||||||
25 | hydropower facilities, the Agency shall establish | ||||||
26 | contract terms designed to optimize existing |
| |||||||
| |||||||
1 | hydropower facilities through modernization or | ||||||
2 | retooling and establish new hydropower facilities at | ||||||
3 | existing dams. Procurements made under this item (vii) | ||||||
4 | shall prioritize projects located in designated | ||||||
5 | environmental justice communities, as defined in | ||||||
6 | subsection (b) of Section 1-56 of this Act, or in | ||||||
7 | projects located in units of local government with | ||||||
8 | median incomes that do not exceed 82% of the median | ||||||
9 | income of the State. | ||||||
10 | (H) The procurement of renewable energy resources for | ||||||
11 | a given delivery year shall be reduced as described in | ||||||
12 | this subparagraph (H) if an alternative retail electric | ||||||
13 | supplier meets the requirements described in this | ||||||
14 | subparagraph (H). | ||||||
15 | (i) Within 45 days after June 1, 2017 (the | ||||||
16 | effective date of Public Act 99-906), an alternative | ||||||
17 | retail electric supplier or its successor shall submit | ||||||
18 | an informational filing to the Illinois Commerce | ||||||
19 | Commission certifying that, as of December 31, 2015, | ||||||
20 | the alternative retail electric supplier owned one or | ||||||
21 | more electric generating facilities that generates | ||||||
22 | renewable energy resources as defined in Section 1-10 | ||||||
23 | of this Act, provided that such facilities are not | ||||||
24 | powered by wind or photovoltaics, and the facilities | ||||||
25 | generate one renewable energy credit for each megawatt | ||||||
26 | hour megawatthour of energy produced from the |
| |||||||
| |||||||
1 | facility. | ||||||
2 | The informational filing shall identify each | ||||||
3 | facility that was eligible to satisfy the alternative | ||||||
4 | retail electric supplier's obligations under Section | ||||||
5 | 16-115D of the Public Utilities Act as described in | ||||||
6 | this item (i). | ||||||
7 | (ii) For a given delivery year, the alternative | ||||||
8 | retail electric supplier may elect to supply its | ||||||
9 | retail customers with renewable energy credits from | ||||||
10 | the facility or facilities described in item (i) of | ||||||
11 | this subparagraph (H) that continue to be owned by the | ||||||
12 | alternative retail electric supplier. | ||||||
13 | (iii) The alternative retail electric supplier | ||||||
14 | shall notify the Agency and the applicable utility, no | ||||||
15 | later than February 28 of the year preceding the | ||||||
16 | applicable delivery year or 15 days after June 1, 2017 | ||||||
17 | (the effective date of Public Act 99-906), whichever | ||||||
18 | is later, of its election under item (ii) of this | ||||||
19 | subparagraph (H) to supply renewable energy credits to | ||||||
20 | retail customers of the utility. Such election shall | ||||||
21 | identify the amount of renewable energy credits to be | ||||||
22 | supplied by the alternative retail electric supplier | ||||||
23 | to the utility's retail customers and the source of | ||||||
24 | the renewable energy credits identified in the | ||||||
25 | informational filing as described in item (i) of this | ||||||
26 | subparagraph (H), subject to the following |
| |||||||
| |||||||
1 | limitations: | ||||||
2 | For the delivery year beginning June 1, 2018, | ||||||
3 | the maximum amount of renewable energy credits to | ||||||
4 | be supplied by an alternative retail electric | ||||||
5 | supplier under this subparagraph (H) shall be 68% | ||||||
6 | multiplied by 25% multiplied by 14.5% multiplied | ||||||
7 | by the amount of metered electricity | ||||||
8 | (megawatt-hours) delivered by the alternative | ||||||
9 | retail electric supplier to Illinois retail | ||||||
10 | customers during the delivery year ending May 31, | ||||||
11 | 2016. | ||||||
12 | For delivery years beginning June 1, 2019 and | ||||||
13 | each year thereafter, the maximum amount of | ||||||
14 | renewable energy credits to be supplied by an | ||||||
15 | alternative retail electric supplier under this | ||||||
16 | subparagraph (H) shall be 68% multiplied by 50% | ||||||
17 | multiplied by 16% multiplied by the amount of | ||||||
18 | metered electricity (megawatt-hours) delivered by | ||||||
19 | the alternative retail electric supplier to | ||||||
20 | Illinois retail customers during the delivery year | ||||||
21 | ending May 31, 2016, provided that the 16% value | ||||||
22 | shall increase by 1.5% each delivery year | ||||||
23 | thereafter to 25% by the delivery year beginning | ||||||
24 | June 1, 2025, and thereafter the 25% value shall | ||||||
25 | apply to each delivery year. | ||||||
26 | For each delivery year, the total amount of |
| |||||||
| |||||||
1 | renewable energy credits supplied by all alternative | ||||||
2 | retail electric suppliers under this subparagraph (H) | ||||||
3 | shall not exceed 9% of the Illinois target renewable | ||||||
4 | energy credit quantity. The Illinois target renewable | ||||||
5 | energy credit quantity for the delivery year beginning | ||||||
6 | June 1, 2018 is 14.5% multiplied by the total amount of | ||||||
7 | metered electricity (megawatt-hours) delivered in the | ||||||
8 | delivery year immediately preceding that delivery | ||||||
9 | year, provided that the 14.5% shall increase by 1.5% | ||||||
10 | each delivery year thereafter to 25% by the delivery | ||||||
11 | year beginning June 1, 2025, and thereafter the 25% | ||||||
12 | value shall apply to each delivery year. | ||||||
13 | If the requirements set forth in items (i) through | ||||||
14 | (iii) of this subparagraph (H) are met, the charges | ||||||
15 | that would otherwise be applicable to the retail | ||||||
16 | customers of the alternative retail electric supplier | ||||||
17 | under paragraph (6) of this subsection (c) for the | ||||||
18 | applicable delivery year shall be reduced by the ratio | ||||||
19 | of the quantity of renewable energy credits supplied | ||||||
20 | by the alternative retail electric supplier compared | ||||||
21 | to that supplier's target renewable energy credit | ||||||
22 | quantity. The supplier's target renewable energy | ||||||
23 | credit quantity for the delivery year beginning June | ||||||
24 | 1, 2018 is 14.5% multiplied by the total amount of | ||||||
25 | metered electricity (megawatt-hours) delivered by the | ||||||
26 | alternative retail supplier in that delivery year, |
| |||||||
| |||||||
1 | provided that the 14.5% shall increase by 1.5% each | ||||||
2 | delivery year thereafter to 25% by the delivery year | ||||||
3 | beginning June 1, 2025, and thereafter the 25% value | ||||||
4 | shall apply to each delivery year. | ||||||
5 | On or before April 1 of each year, the Agency shall | ||||||
6 | annually publish a report on its website that | ||||||
7 | identifies the aggregate amount of renewable energy | ||||||
8 | credits supplied by alternative retail electric | ||||||
9 | suppliers under this subparagraph (H). | ||||||
10 | (I) The Agency shall design its long-term renewable | ||||||
11 | energy procurement plan to maximize the State's interest | ||||||
12 | in the health, safety, and welfare of its residents, | ||||||
13 | including but not limited to minimizing sulfur dioxide, | ||||||
14 | nitrogen oxide, particulate matter and other pollution | ||||||
15 | that adversely affects public health in this State, | ||||||
16 | increasing fuel and resource diversity in this State, | ||||||
17 | enhancing the reliability and resiliency of the | ||||||
18 | electricity distribution system in this State, meeting | ||||||
19 | goals to limit carbon dioxide emissions under federal or | ||||||
20 | State law, and contributing to a cleaner and healthier | ||||||
21 | environment for the citizens of this State. In order to | ||||||
22 | further these legislative purposes, renewable energy | ||||||
23 | credits shall be eligible to be counted toward the | ||||||
24 | renewable energy requirements of this subsection (c) if | ||||||
25 | they are generated from facilities located in this State. | ||||||
26 | The Agency may qualify renewable energy credits from |
| |||||||
| |||||||
1 | facilities located in states adjacent to Illinois or | ||||||
2 | renewable energy credits associated with the electricity | ||||||
3 | generated by a utility-scale wind energy facility or | ||||||
4 | utility-scale photovoltaic facility and transmitted by a | ||||||
5 | qualifying direct current project described in subsection | ||||||
6 | (b-5) of Section 8-406 of the Public Utilities Act to a | ||||||
7 | delivery point on the electric transmission grid located | ||||||
8 | in this State or a state adjacent to Illinois, if the | ||||||
9 | generator demonstrates and the Agency determines that the | ||||||
10 | operation of such facility or facilities will help promote | ||||||
11 | the State's interest in the health, safety, and welfare of | ||||||
12 | its residents based on the public interest criteria | ||||||
13 | described above. For the purposes of this Section, | ||||||
14 | renewable resources that are delivered via a high voltage | ||||||
15 | direct current converter station located in Illinois shall | ||||||
16 | be deemed generated in Illinois at the time and location | ||||||
17 | the energy is converted to alternating current by the high | ||||||
18 | voltage direct current converter station if the high | ||||||
19 | voltage direct current transmission line: (i) after the | ||||||
20 | effective date of this amendatory Act of the 102nd General | ||||||
21 | Assembly, was constructed with a project labor agreement; | ||||||
22 | (ii) is capable of transmitting electricity at 525kv; | ||||||
23 | (iii) has an Illinois converter station located and | ||||||
24 | interconnected in the region of the PJM Interconnection, | ||||||
25 | LLC; (iv) does not operate as a public utility; and (v) if | ||||||
26 | the high voltage direct current transmission line was |
| |||||||
| |||||||
1 | energized after June 1, 2023. To ensure that the public | ||||||
2 | interest criteria are applied to the procurement and given | ||||||
3 | full effect, the Agency's long-term procurement plan shall | ||||||
4 | describe in detail how each public interest factor shall | ||||||
5 | be considered and weighted for facilities located in | ||||||
6 | states adjacent to Illinois. | ||||||
7 | (J) In order to promote the competitive development of | ||||||
8 | renewable energy resources in furtherance of the State's | ||||||
9 | interest in the health, safety, and welfare of its | ||||||
10 | residents, renewable energy credits shall not be eligible | ||||||
11 | to be counted toward the renewable energy requirements of | ||||||
12 | this subsection (c) if they are sourced from a generating | ||||||
13 | unit whose costs were being recovered through rates | ||||||
14 | regulated by this State or any other state or states on or | ||||||
15 | after January 1, 2017. Each contract executed to purchase | ||||||
16 | renewable energy credits under this subsection (c) shall | ||||||
17 | provide for the contract's termination if the costs of the | ||||||
18 | generating unit supplying the renewable energy credits | ||||||
19 | subsequently begin to be recovered through rates regulated | ||||||
20 | by this State or any other state or states; and each | ||||||
21 | contract shall further provide that, in that event, the | ||||||
22 | supplier of the credits must return 110% of all payments | ||||||
23 | received under the contract. Amounts returned under the | ||||||
24 | requirements of this subparagraph (J) shall be retained by | ||||||
25 | the utility and all of these amounts shall be used for the | ||||||
26 | procurement of additional renewable energy credits from |
| |||||||
| |||||||
1 | new wind or new photovoltaic resources as defined in this | ||||||
2 | subsection (c). The long-term plan shall provide that | ||||||
3 | these renewable energy credits shall be procured in the | ||||||
4 | next procurement event. | ||||||
5 | Notwithstanding the limitations of this subparagraph | ||||||
6 | (J), renewable energy credits sourced from generating | ||||||
7 | units that are constructed, purchased, owned, or leased by | ||||||
8 | an electric utility as part of an approved project, | ||||||
9 | program, or pilot under Section 1-56 of this Act shall be | ||||||
10 | eligible to be counted toward the renewable energy | ||||||
11 | requirements of this subsection (c), regardless of how the | ||||||
12 | costs of these units are recovered. As long as a | ||||||
13 | generating unit or an identifiable portion of a generating | ||||||
14 | unit has not had and does not have its costs recovered | ||||||
15 | through rates regulated by this State or any other state, | ||||||
16 | HVDC renewable energy credits associated with that | ||||||
17 | generating unit or identifiable portion thereof shall be | ||||||
18 | eligible to be counted toward the renewable energy | ||||||
19 | requirements of this subsection (c). | ||||||
20 | (K) The long-term renewable resources procurement plan | ||||||
21 | developed by the Agency in accordance with subparagraph | ||||||
22 | (A) of this paragraph (1) shall include an Adjustable | ||||||
23 | Block program for the procurement of renewable energy | ||||||
24 | credits from new photovoltaic projects that are | ||||||
25 | distributed renewable energy generation devices or new | ||||||
26 | photovoltaic community renewable generation projects. The |
| |||||||
| |||||||
1 | Adjustable Block program shall be generally designed to | ||||||
2 | provide for the steady, predictable, and sustainable | ||||||
3 | growth of new solar photovoltaic development in Illinois. | ||||||
4 | To this end, except as otherwise provided in subparagraph | ||||||
5 | (viii) of this paragraph (K), the Adjustable Block program | ||||||
6 | shall provide a transparent annual schedule of prices and | ||||||
7 | quantities to enable the photovoltaic market to scale up | ||||||
8 | and for renewable energy credit prices to adjust at a | ||||||
9 | predictable rate over time. The prices set by the | ||||||
10 | Adjustable Block program can be reflected as a set value | ||||||
11 | or as the product of a formula. | ||||||
12 | The Adjustable Block program shall include for each | ||||||
13 | category of eligible projects for each delivery year: a | ||||||
14 | single block of nameplate capacity, a price for renewable | ||||||
15 | energy credits within that block, and the terms and | ||||||
16 | conditions for securing a spot on a waitlist once the | ||||||
17 | block is fully committed or reserved. Except as outlined | ||||||
18 | below, the waitlist of projects in a given year will carry | ||||||
19 | over to apply to the subsequent year when another block is | ||||||
20 | opened. Only projects energized on or after June 1, 2017 | ||||||
21 | shall be eligible for the Adjustable Block program. For | ||||||
22 | each category for each delivery year the Agency shall | ||||||
23 | determine the amount of generation capacity in each block, | ||||||
24 | and the purchase price for each block, provided that the | ||||||
25 | purchase price provided and the total amount of generation | ||||||
26 | in all blocks for all categories shall be sufficient to |
| |||||||
| |||||||
1 | meet the goals in this subsection (c). The Agency shall | ||||||
2 | strive to issue a single block sized to provide for | ||||||
3 | stability and market growth. The Agency shall establish | ||||||
4 | program eligibility requirements that ensure that projects | ||||||
5 | that enter the program are sufficiently mature to indicate | ||||||
6 | a demonstrable path to completion. The Agency may | ||||||
7 | periodically review its prior decisions establishing the | ||||||
8 | amount of generation capacity in each block, and the | ||||||
9 | purchase price for each block, and may propose, on an | ||||||
10 | expedited basis, changes to these previously set values, | ||||||
11 | including but not limited to redistributing these amounts | ||||||
12 | and the available funds as necessary and appropriate, | ||||||
13 | subject to Commission approval as part of the periodic | ||||||
14 | plan revision process described in Section 16-111.5 of the | ||||||
15 | Public Utilities Act. The Agency may define different | ||||||
16 | block sizes, purchase prices, or other distinct terms and | ||||||
17 | conditions for projects located in different utility | ||||||
18 | service territories if the Agency deems it necessary to | ||||||
19 | meet the goals in this subsection (c). | ||||||
20 | The Adjustable Block program shall include the | ||||||
21 | following categories in at least the following amounts: | ||||||
22 | (i) At least 20% from distributed renewable energy | ||||||
23 | generation devices with a nameplate capacity of no | ||||||
24 | more than 25 kilowatts. | ||||||
25 | (ii) At least 20% from distributed renewable | ||||||
26 | energy generation devices with a nameplate capacity of |
| |||||||
| |||||||
1 | more than 25 kilowatts and no more than 5,000 | ||||||
2 | kilowatts. The Agency may create sub-categories within | ||||||
3 | this category to account for the differences between | ||||||
4 | projects for small commercial customers, large | ||||||
5 | commercial customers, and public or non-profit | ||||||
6 | customers. | ||||||
7 | (iii) At least 30% from photovoltaic community | ||||||
8 | renewable generation projects. Capacity for this | ||||||
9 | category for the first 2 delivery years after the | ||||||
10 | effective date of this amendatory Act of the 102nd | ||||||
11 | General Assembly shall be allocated to waitlist | ||||||
12 | projects as provided in paragraph (3) of item (iv) of | ||||||
13 | subparagraph (G). Starting in the third delivery year | ||||||
14 | after the effective date of this amendatory Act of the | ||||||
15 | 102nd General Assembly or earlier if the Agency | ||||||
16 | determines there is additional capacity needed for to | ||||||
17 | meet previous delivery year requirements, the | ||||||
18 | following shall apply: | ||||||
19 | (1) to advance the interests of all ratepayers | ||||||
20 | in timely development of community renewable | ||||||
21 | generation projects powered by solar photovoltaics | ||||||
22 | procured under this Act, the Agency shall select | ||||||
23 | projects on a first-come, first-serve basis ; , | ||||||
24 | however , the Agency shall, for applications on or | ||||||
25 | after the effective date of this amendatory Act of | ||||||
26 | the 103rd General Assembly, may suggest additional |
| |||||||
| |||||||
1 | methods to prioritize projects according to this | ||||||
2 | item (1). Prioritization methods shall be clear | ||||||
3 | and changes to those methods shall not hinder the | ||||||
4 | steady, predictable, and sustainable growth of | ||||||
5 | projects under this subsection. The Agency shall | ||||||
6 | ensure any project characteristics incentivized by | ||||||
7 | the prioritization method are aligned with the | ||||||
8 | findings of this Act and the price of the | ||||||
9 | associated renewable energy credit adequately | ||||||
10 | compensates the additional costs that may be | ||||||
11 | imposed on a project that are submitted at the | ||||||
12 | same time ; | ||||||
13 | (1.5) all projects submitted under this | ||||||
14 | category shall, as part of the initial | ||||||
15 | application, be required to provide, in a form | ||||||
16 | directed by the Agency, proof of site control, | ||||||
17 | land use permits, if necessary, and a signed | ||||||
18 | interconnection agreement; | ||||||
19 | (2) projects shall have subscriptions of 25 kW | ||||||
20 | or less for at least 50% of the facility's | ||||||
21 | nameplate capacity and the Agency shall price the | ||||||
22 | renewable energy credits with that as a factor; | ||||||
23 | (3) projects shall not be colocated with one | ||||||
24 | or more other community renewable generation | ||||||
25 | projects, as defined in the Agency's first revised | ||||||
26 | long-term renewable resources procurement plan |
| |||||||
| |||||||
1 | approved by the Commission on February 18, 2020, | ||||||
2 | such that the aggregate nameplate capacity exceeds | ||||||
3 | 5,000 kilowatts; and | ||||||
4 | (4) projects greater than 2 MW may not apply | ||||||
5 | until after the approval of the Agency's revised | ||||||
6 | Long-Term Renewable Resources Procurement Plan | ||||||
7 | after the effective date of this amendatory Act of | ||||||
8 | the 102nd General Assembly. | ||||||
9 | (iv) At least 15% from distributed renewable | ||||||
10 | generation devices or photovoltaic community renewable | ||||||
11 | generation projects installed or on land adjacent to | ||||||
12 | public school land. For the purposes of this item | ||||||
13 | (iv), qualifying projects shall be located on property | ||||||
14 | owned, leased, or subleased by the school or school | ||||||
15 | district or on property owned, leased, or subleased by | ||||||
16 | the school or school district located adjacent to | ||||||
17 | property owned by the school. The Agency may create | ||||||
18 | subcategories within this category to account for the | ||||||
19 | differences between project size or location. Projects | ||||||
20 | located within environmental justice communities or | ||||||
21 | within Organizational Units that fall within Tier 1 or | ||||||
22 | Tier 2 shall be given priority. Each of the Agency's | ||||||
23 | periodic updates to its long-term renewable resources | ||||||
24 | procurement plan to incorporate the procurement | ||||||
25 | described in this subparagraph (iv) shall also include | ||||||
26 | the proposed quantities or blocks, pricing, and |
| |||||||
| |||||||
1 | contract terms applicable to the procurement as | ||||||
2 | indicated herein. In each such update and procurement, | ||||||
3 | the Agency shall set the renewable energy credit price | ||||||
4 | and establish payment terms for the renewable energy | ||||||
5 | credits procured pursuant to this subparagraph (iv) | ||||||
6 | that make it feasible and affordable for public | ||||||
7 | schools to install photovoltaic distributed renewable | ||||||
8 | energy devices on their premises, including, but not | ||||||
9 | limited to, those public schools subject to the | ||||||
10 | prioritization provisions of this subparagraph. For | ||||||
11 | the purposes of this item (iv): | ||||||
12 | "Environmental Justice Community" shall have the | ||||||
13 | same meaning set forth in the Agency's long-term | ||||||
14 | renewable resources procurement plan; | ||||||
15 | "Organization Unit", "Tier 1" and "Tier 2" shall | ||||||
16 | have the meanings set for in Section 18-8.15 of the | ||||||
17 | School Code; | ||||||
18 | "Public schools" shall have the meaning set forth | ||||||
19 | in Section 1-3 of the School Code and includes public | ||||||
20 | institutions of higher education, as defined in the | ||||||
21 | Board of Higher Education Act. | ||||||
22 | (v) At least 5% from community-driven community | ||||||
23 | solar projects intended to provide more direct and | ||||||
24 | tangible connection and benefits to the communities | ||||||
25 | which they serve or in which they operate and, | ||||||
26 | additionally, to increase the variety of community |
| |||||||
| |||||||
1 | solar locations, models, and options in Illinois. As | ||||||
2 | part of its long-term renewable resources procurement | ||||||
3 | plan, the Agency shall develop selection criteria for | ||||||
4 | projects participating in this category. Nothing in | ||||||
5 | this Section shall preclude the Agency from creating a | ||||||
6 | selection process that maximizes community ownership | ||||||
7 | and community benefits in selecting projects to | ||||||
8 | receive renewable energy credits. Selection criteria | ||||||
9 | shall include: | ||||||
10 | (1) community ownership or community | ||||||
11 | wealth-building; | ||||||
12 | (2) additional direct and indirect community | ||||||
13 | benefit, beyond project participation as a | ||||||
14 | subscriber, including, but not limited to, | ||||||
15 | economic, environmental, social, cultural, and | ||||||
16 | physical benefits; | ||||||
17 | (3) meaningful involvement in project | ||||||
18 | organization and development by community members | ||||||
19 | or nonprofit organizations or public entities | ||||||
20 | located in or serving the community; | ||||||
21 | (4) engagement in project operations and | ||||||
22 | management by nonprofit organizations, public | ||||||
23 | entities, or community members; and | ||||||
24 | (5) whether a project is developed in response | ||||||
25 | to a site-specific RFP developed by community | ||||||
26 | members or a nonprofit organization or public |
| |||||||
| |||||||
1 | entity located in or serving the community. | ||||||
2 | Selection criteria may also prioritize projects | ||||||
3 | that: | ||||||
4 | (1) are developed in collaboration with or to | ||||||
5 | provide complementary opportunities for the Clean | ||||||
6 | Jobs Workforce Network Program, the Illinois | ||||||
7 | Climate Works Preapprenticeship Program, the | ||||||
8 | Returning Residents Clean Jobs Training Program, | ||||||
9 | the Clean Energy Contractor Incubator Program, or | ||||||
10 | the Clean Energy Primes Contractor Accelerator | ||||||
11 | Program; | ||||||
12 | (2) increase the diversity of locations of | ||||||
13 | community solar projects in Illinois, including by | ||||||
14 | locating in urban areas and population centers; | ||||||
15 | (3) are located in Equity Investment Eligible | ||||||
16 | Communities; | ||||||
17 | (4) are not greenfield projects; | ||||||
18 | (5) serve only local subscribers; | ||||||
19 | (6) have a nameplate capacity that does not | ||||||
20 | exceed 500 kW; | ||||||
21 | (7) are developed by an equity eligible | ||||||
22 | contractor; or | ||||||
23 | (8) otherwise meaningfully advance the goals | ||||||
24 | of providing more direct and tangible connection | ||||||
25 | and benefits to the communities which they serve | ||||||
26 | or in which they operate and increasing the |
| |||||||
| |||||||
1 | variety of community solar locations, models, and | ||||||
2 | options in Illinois. | ||||||
3 | For the purposes of this item (v): | ||||||
4 | "Community" means a social unit in which people | ||||||
5 | come together regularly to effect change; a social | ||||||
6 | unit in which participants are marked by a cooperative | ||||||
7 | spirit, a common purpose, or shared interests or | ||||||
8 | characteristics; or a space understood by its | ||||||
9 | residents to be delineated through geographic | ||||||
10 | boundaries or landmarks. | ||||||
11 | "Community benefit" means a range of services and | ||||||
12 | activities that provide affirmative, economic, | ||||||
13 | environmental, social, cultural, or physical value to | ||||||
14 | a community; or a mechanism that enables economic | ||||||
15 | development, high-quality employment, and education | ||||||
16 | opportunities for local workers and residents, or | ||||||
17 | formal monitoring and oversight structures such that | ||||||
18 | community members may ensure that those services and | ||||||
19 | activities respond to local knowledge and needs. | ||||||
20 | "Community ownership" means an arrangement in | ||||||
21 | which an electric generating facility is, or over time | ||||||
22 | will be, in significant part, owned collectively by | ||||||
23 | members of the community to which an electric | ||||||
24 | generating facility provides benefits; members of that | ||||||
25 | community participate in decisions regarding the | ||||||
26 | governance, operation, maintenance, and upgrades of |
| |||||||
| |||||||
1 | and to that facility; and members of that community | ||||||
2 | benefit from regular use of that facility. | ||||||
3 | Terms and guidance within these criteria that are | ||||||
4 | not defined in this item (v) shall be defined by the | ||||||
5 | Agency, with stakeholder input, during the development | ||||||
6 | of the Agency's long-term renewable resources | ||||||
7 | procurement plan. The Agency shall develop regular | ||||||
8 | opportunities for projects to submit applications for | ||||||
9 | projects under this category, and develop selection | ||||||
10 | criteria that gives preference to projects that better | ||||||
11 | meet individual criteria as well as projects that | ||||||
12 | address a higher number of criteria. | ||||||
13 | (vi) At least 10% from distributed renewable | ||||||
14 | energy generation devices, which includes distributed | ||||||
15 | renewable energy devices with a nameplate capacity | ||||||
16 | under 5,000 kilowatts or photovoltaic community | ||||||
17 | renewable generation projects, from applicants that | ||||||
18 | are both approved vendors and equity eligible | ||||||
19 | contractors. The Agency shall not limit or impair | ||||||
20 | assignment of the contract to sell renewable energy | ||||||
21 | credits authorized by subparagraph (L) to another | ||||||
22 | approved vendor, except to the extent that in exchange | ||||||
23 | for price adders or other beneficial terms and | ||||||
24 | conditions, the applicant agrees to only assign to an | ||||||
25 | approved vendor that is, at the time of assignment, an | ||||||
26 | equity eligible contractor. The Agency may create |
| |||||||
| |||||||
1 | subcategories within this category to account for the | ||||||
2 | differences between project size and type. The Agency | ||||||
3 | shall propose to increase the percentage in this item | ||||||
4 | (vi) over time to 40% based on factors, including, but | ||||||
5 | not limited to, the number of equity eligible | ||||||
6 | contractors and capacity used in this item (vi) in | ||||||
7 | previous delivery years. | ||||||
8 | The Agency shall propose a payment structure for | ||||||
9 | contracts executed pursuant to this paragraph under | ||||||
10 | which, upon a demonstration of qualification or need, | ||||||
11 | applicant firms are advanced capital disbursed after | ||||||
12 | contract execution but before the contracted project's | ||||||
13 | energization. The amount or percentage of capital | ||||||
14 | advanced prior to project energization shall be | ||||||
15 | sufficient to both cover any increase in development | ||||||
16 | costs resulting from prevailing wage requirements or | ||||||
17 | project-labor agreements, and designed to overcome | ||||||
18 | barriers in access to capital faced by equity eligible | ||||||
19 | contractors. The amount or percentage of advanced | ||||||
20 | capital may vary by subcategory within this category | ||||||
21 | and by an applicant's demonstration of need, with such | ||||||
22 | levels to be established through the Long-Term | ||||||
23 | Renewable Resources Procurement Plan authorized under | ||||||
24 | subparagraph (A) of paragraph (1) of subsection (c) of | ||||||
25 | this Section. | ||||||
26 | Contracts developed featuring capital advanced |
| |||||||
| |||||||
1 | prior to a project's energization shall feature | ||||||
2 | provisions to ensure both the successful development | ||||||
3 | of applicant projects and the delivery of the | ||||||
4 | renewable energy credits for the full term of the | ||||||
5 | contract, including ongoing collateral requirements | ||||||
6 | and other provisions deemed necessary by the Agency, | ||||||
7 | and may include energization timelines longer than for | ||||||
8 | comparable project types. The percentage or amount of | ||||||
9 | capital advanced prior to project energization shall | ||||||
10 | not operate to increase the overall contract value, | ||||||
11 | however contracts executed under this subparagraph may | ||||||
12 | feature renewable energy credit prices higher than | ||||||
13 | those offered to similar projects participating in | ||||||
14 | other categories. Capital advanced prior to | ||||||
15 | energization shall serve to reduce the ratable | ||||||
16 | payments made after energization under items (ii) and | ||||||
17 | (iii) of subparagraph (L) or payments made for each | ||||||
18 | renewable energy credit delivery under item (iv) of | ||||||
19 | subparagraph (L). | ||||||
20 | (vii) The remaining capacity shall be allocated by | ||||||
21 | the Agency in order to respond to market demand. The | ||||||
22 | Agency shall allocate any discretionary capacity prior | ||||||
23 | to the beginning of each delivery year. | ||||||
24 | (viii) Notwithstanding the preceding, not more than 90 | ||||||
25 | days after the effective date of this amendatory Act of | ||||||
26 | the 103rd General Assembly, the Agency shall petition the |
| |||||||
| |||||||
1 | Commission to modify its Long-Term Renewable Resources | ||||||
2 | Procurement Plan as follows: | ||||||
3 | (1) the petition shall include an estimate of | ||||||
4 | the size of blocks authorized under subparagraph | ||||||
5 | (i) of this paragraph (K) through the delivery | ||||||
6 | year beginning in 2030; | ||||||
7 | (2) the petition shall propose that such | ||||||
8 | capacity be made available on a continuous basis, | ||||||
9 | subject to inter-block price reductions proposed | ||||||
10 | by the Agency; and | ||||||
11 | (3) the petition shall propose a methodology | ||||||
12 | for reallocated capacity under the terms of the | ||||||
13 | Agency's Long-Term Renewable Resources Procurement | ||||||
14 | Plan. | ||||||
15 | The Commission shall approve the Agency's petition | ||||||
16 | within 120 days after receiving the petition, with any | ||||||
17 | modifications that the Commission finds are necessary | ||||||
18 | to deploy distributed renewable energy generation | ||||||
19 | devices to meet customer demand and enable the | ||||||
20 | photovoltaic market to scale up and for renewable | ||||||
21 | energy credit prices to adjust at a predictable rate | ||||||
22 | over time. | ||||||
23 | To the extent there is uncontracted capacity from any | ||||||
24 | block in any of categories (i) through (vi) at the end of a | ||||||
25 | delivery year, the Agency shall redistribute that capacity | ||||||
26 | to one or more other categories giving priority to |
| |||||||
| |||||||
1 | categories with projects on a waitlist. The redistributed | ||||||
2 | capacity shall be added to the annual capacity in the | ||||||
3 | subsequent delivery year, and the price for renewable | ||||||
4 | energy credits shall be the price for the new delivery | ||||||
5 | year. Redistributed capacity shall not be considered | ||||||
6 | redistributed when determining whether the goals in this | ||||||
7 | subsection (K) have been met. | ||||||
8 | Notwithstanding anything to the contrary, as the | ||||||
9 | Agency increases the capacity in item (vi) to 40% over | ||||||
10 | time, the Agency may reduce the capacity of items (i) | ||||||
11 | through (v) proportionate to the capacity of the | ||||||
12 | categories of projects in item (vi), to achieve a balance | ||||||
13 | of project types. | ||||||
14 | The Adjustable Block program shall be designed to | ||||||
15 | ensure that renewable energy credits are procured from | ||||||
16 | projects in diverse locations and are not concentrated in | ||||||
17 | a few regional areas. | ||||||
18 | (L) Notwithstanding provisions for advancing capital | ||||||
19 | prior to project energization found in item (vi) of | ||||||
20 | subparagraph (K), the procurement of photovoltaic | ||||||
21 | renewable energy credits under items (i) through (vi) of | ||||||
22 | subparagraph (K) of this paragraph (1) shall otherwise be | ||||||
23 | subject to the following contract and payment terms: | ||||||
24 | (i) (Blank). | ||||||
25 | (i-3) Upon delivery of evidence of an increase of | ||||||
26 | over 100% of non-binding cost estimates for |
| |||||||
| |||||||
1 | interconnection from a study or interconnection | ||||||
2 | agreement issued prior to application of a system to | ||||||
3 | the program described in subparagraph (K) of this | ||||||
4 | paragraph (1) to a study or interconnection agreement | ||||||
5 | issued after such application, the approved vendor | ||||||
6 | submitting such application shall be entitled to | ||||||
7 | return of 100% of any performance assurance posted for | ||||||
8 | such system under a contract described in this | ||||||
9 | subparagraph (L). | ||||||
10 | (i-5) The Agency or its program administrator | ||||||
11 | shall complete the review of the materials as the | ||||||
12 | Agency may require to be submitted to trigger the | ||||||
13 | initial payment for a participating system under the | ||||||
14 | renewable energy credit contract no later than 6 weeks | ||||||
15 | after the completed submission. | ||||||
16 | (ii) For those renewable energy credits that | ||||||
17 | qualify and are procured under item (i) of | ||||||
18 | subparagraph (K) of this paragraph (1), and any | ||||||
19 | similar category projects that are procured under item | ||||||
20 | (vi) of subparagraph (K) of this paragraph (1) that | ||||||
21 | qualify and are procured under item (vi), the contract | ||||||
22 | length shall be 15 years. The renewable energy credit | ||||||
23 | delivery contract value shall be paid in full, based | ||||||
24 | on the estimated generation during the first 15 years | ||||||
25 | of operation, by the contracting utilities at the time | ||||||
26 | that the facility producing the renewable energy |
| |||||||
| |||||||
1 | credits is interconnected at the distribution system | ||||||
2 | level of the utility and verified as energized and | ||||||
3 | compliant by the Program Administrator. The electric | ||||||
4 | utility shall receive and retire all renewable energy | ||||||
5 | credits generated by the project for the first 15 | ||||||
6 | years of operation. Renewable energy credits generated | ||||||
7 | by the project thereafter shall not be transferred | ||||||
8 | under the renewable energy credit delivery contract | ||||||
9 | with the counterparty electric utility. | ||||||
10 | (iii) For those renewable energy credits that | ||||||
11 | qualify and are procured under item (ii) and (v) of | ||||||
12 | subparagraph (K) of this paragraph (1) and any like | ||||||
13 | projects similar category that qualify and are | ||||||
14 | procured under item (vi), the contract length shall be | ||||||
15 | 15 years. 15% of the renewable energy credit delivery | ||||||
16 | contract value, based on the estimated generation | ||||||
17 | during the first 15 years of operation, shall be paid | ||||||
18 | by the contracting utilities at the time that the | ||||||
19 | facility producing the renewable energy credits is | ||||||
20 | interconnected at the distribution system level of the | ||||||
21 | utility and verified as energized and compliant by the | ||||||
22 | Program Administrator. The remaining portion shall be | ||||||
23 | paid ratably over the subsequent 6-year period. The | ||||||
24 | electric utility shall receive and retire all | ||||||
25 | renewable energy credits generated by the project for | ||||||
26 | the first 15 years of operation. Renewable energy |
| |||||||
| |||||||
1 | credits generated by the project thereafter shall not | ||||||
2 | be transferred under the renewable energy credit | ||||||
3 | delivery contract with the counterparty electric | ||||||
4 | utility. | ||||||
5 | (iv) For those renewable energy credits that | ||||||
6 | qualify and are procured under items (iii) and (iv) of | ||||||
7 | subparagraph (K) of this paragraph (1), and any like | ||||||
8 | projects that qualify and are procured under item | ||||||
9 | (vi), the renewable energy credit delivery contract | ||||||
10 | length shall be 20 years and shall be paid over the | ||||||
11 | delivery term, not to exceed during each delivery year | ||||||
12 | the contract price multiplied by the estimated annual | ||||||
13 | renewable energy credit generation amount. If | ||||||
14 | generation of renewable energy credits during a | ||||||
15 | delivery year exceeds the estimated annual generation | ||||||
16 | amount, the excess renewable energy credits shall be | ||||||
17 | carried forward to future delivery years and shall not | ||||||
18 | expire during the delivery term. If generation of | ||||||
19 | renewable energy credits during a delivery year, | ||||||
20 | including carried forward excess renewable energy | ||||||
21 | credits, if any, is less than the estimated annual | ||||||
22 | generation amount, payments during such delivery year | ||||||
23 | will not exceed the quantity generated plus the | ||||||
24 | quantity carried forward multiplied by the contract | ||||||
25 | price. The electric utility shall receive all | ||||||
26 | renewable energy credits generated by the project |
| |||||||
| |||||||
1 | during the first 20 years of operation and retire all | ||||||
2 | renewable energy credits paid for under this item (iv) | ||||||
3 | and return at the end of the delivery term all | ||||||
4 | renewable energy credits that were not paid for. | ||||||
5 | Renewable energy credits generated by the project | ||||||
6 | thereafter shall not be transferred under the | ||||||
7 | renewable energy credit delivery contract with the | ||||||
8 | counterparty electric utility. Notwithstanding the | ||||||
9 | preceding, for those projects participating under item | ||||||
10 | (iii) of subparagraph (K), the contract price for a | ||||||
11 | delivery year shall be based on subscription levels as | ||||||
12 | measured on the higher of the first business day of the | ||||||
13 | delivery year or the first business day 6 months after | ||||||
14 | the first business day of the delivery year. | ||||||
15 | Subscription of 90% of nameplate capacity or greater | ||||||
16 | shall be deemed to be fully subscribed for the | ||||||
17 | purposes of this item (iv). For projects receiving a | ||||||
18 | 20-year delivery contract, REC prices shall be | ||||||
19 | adjusted downward for consistency with the incentive | ||||||
20 | levels previously determined to be necessary to | ||||||
21 | support projects under 15-year delivery contracts, | ||||||
22 | taking into consideration any additional new | ||||||
23 | requirements placed on the projects, including, but | ||||||
24 | not limited to, labor standards. | ||||||
25 | (v) Each contract shall include provisions to | ||||||
26 | ensure the delivery of the estimated quantity of |
| |||||||
| |||||||
1 | renewable energy credits and ongoing collateral | ||||||
2 | requirements and other provisions deemed appropriate | ||||||
3 | by the Agency. | ||||||
4 | (vi) The utility shall be the counterparty to the | ||||||
5 | contracts executed under this subparagraph (L) that | ||||||
6 | are approved by the Commission under the process | ||||||
7 | described in Section 16-111.5 of the Public Utilities | ||||||
8 | Act. No contract shall be executed for an amount that | ||||||
9 | is less than one renewable energy credit per year. | ||||||
10 | (vii) If, at any time, approved applications for | ||||||
11 | the Adjustable Block program exceed funds collected by | ||||||
12 | the electric utility or would cause the Agency to | ||||||
13 | exceed the limitation described in subparagraph (E) of | ||||||
14 | this paragraph (1) on the amount of renewable energy | ||||||
15 | resources that may be procured, then the Agency may | ||||||
16 | consider future uncommitted funds to be reserved for | ||||||
17 | these contracts on a first-come, first-served basis. | ||||||
18 | (viii) Nothing in this Section shall require the | ||||||
19 | utility to advance any payment or pay any amounts that | ||||||
20 | exceed the actual amount of revenues anticipated to be | ||||||
21 | collected by the utility under paragraph (6) of this | ||||||
22 | subsection (c) and subsection (k) of Section 16-108 of | ||||||
23 | the Public Utilities Act inclusive of eligible funds | ||||||
24 | collected in prior years and alternative compliance | ||||||
25 | payments for use by the utility , and contracts | ||||||
26 | executed under this Section shall expressly |
| |||||||
| |||||||
1 | incorporate this limitation . | ||||||
2 | (ix) Notwithstanding other requirements of this | ||||||
3 | subparagraph (L), no modification shall be required to | ||||||
4 | Adjustable Block program contracts if they were | ||||||
5 | already executed prior to the establishment, approval, | ||||||
6 | and implementation of new contract forms as a result | ||||||
7 | of this amendatory Act of the 102nd General Assembly. | ||||||
8 | (x) Contracts may be assignable, but only to | ||||||
9 | entities first deemed by the Agency to have met | ||||||
10 | program terms and requirements applicable to direct | ||||||
11 | program participation. In developing contracts for the | ||||||
12 | delivery of renewable energy credits, the Agency shall | ||||||
13 | be permitted to establish fees applicable to each | ||||||
14 | contract assignment. | ||||||
15 | (M) The Agency shall be authorized to retain one or | ||||||
16 | more experts or expert consulting firms to develop, | ||||||
17 | administer, implement, operate, and evaluate the | ||||||
18 | Adjustable Block program described in subparagraph (K) of | ||||||
19 | this paragraph (1), and the Agency shall retain the | ||||||
20 | consultant or consultants in the same manner, to the | ||||||
21 | extent practicable, as the Agency retains others to | ||||||
22 | administer provisions of this Act, including, but not | ||||||
23 | limited to, the procurement administrator. The selection | ||||||
24 | of experts and expert consulting firms and the procurement | ||||||
25 | process described in this subparagraph (M) are exempt from | ||||||
26 | the requirements of Section 20-10 of the Illinois |
| |||||||
| |||||||
1 | Procurement Code, under Section 20-10 of that Code. The | ||||||
2 | Agency shall strive to minimize administrative expenses in | ||||||
3 | the implementation of the Adjustable Block program. | ||||||
4 | The Program Administrator may charge application fees | ||||||
5 | to participating firms to cover the cost of program | ||||||
6 | administration. Any application fee amounts shall | ||||||
7 | initially be determined through the long-term renewable | ||||||
8 | resources procurement plan, and modifications to any | ||||||
9 | application fee that deviate more than 25% from the | ||||||
10 | Commission's approved value must be approved by the | ||||||
11 | Commission as a long-term plan revision under Section | ||||||
12 | 16-111.5 of the Public Utilities Act. The Agency shall | ||||||
13 | consider stakeholder feedback when making adjustments to | ||||||
14 | application fees and shall notify stakeholders in advance | ||||||
15 | of any planned changes. | ||||||
16 | In addition to covering the costs of program | ||||||
17 | administration, the Agency, in conjunction with its | ||||||
18 | Program Administrator, may also use the proceeds of such | ||||||
19 | fees charged to participating firms to support public | ||||||
20 | education and ongoing regional and national coordination | ||||||
21 | with nonprofit organizations, public bodies, and others | ||||||
22 | engaged in the implementation of renewable energy | ||||||
23 | incentive programs or similar initiatives. This work may | ||||||
24 | include developing papers and reports, hosting regional | ||||||
25 | and national conferences, and other work deemed necessary | ||||||
26 | by the Agency to position the State of Illinois as a |
| |||||||
| |||||||
1 | national leader in renewable energy incentive program | ||||||
2 | development and administration. | ||||||
3 | The Agency and its consultant or consultants shall | ||||||
4 | monitor block activity, share program activity with | ||||||
5 | stakeholders and conduct quarterly meetings to discuss | ||||||
6 | program activity and market conditions. If necessary, the | ||||||
7 | Agency may make prospective administrative adjustments to | ||||||
8 | the Adjustable Block program design, such as making | ||||||
9 | adjustments to purchase prices as necessary to achieve the | ||||||
10 | goals of this subsection (c). Program modifications to any | ||||||
11 | block price that do not deviate from the Commission's | ||||||
12 | approved value by more than 10% shall take effect | ||||||
13 | immediately and are not subject to Commission review and | ||||||
14 | approval. Program modifications to any block price that | ||||||
15 | deviate more than 10% from the Commission's approved value | ||||||
16 | must be approved by the Commission as a long-term plan | ||||||
17 | amendment under Section 16-111.5 of the Public Utilities | ||||||
18 | Act. The Agency shall consider stakeholder feedback when | ||||||
19 | making adjustments to the Adjustable Block design and | ||||||
20 | shall notify stakeholders in advance of any planned | ||||||
21 | changes. | ||||||
22 | The Agency and its program administrators for both the | ||||||
23 | Adjustable Block program and the Illinois Solar for All | ||||||
24 | Program, consistent with the requirements of this | ||||||
25 | subsection (c) and subsection (b) of Section 1-56 of this | ||||||
26 | Act, shall propose the Adjustable Block program terms, |
| |||||||
| |||||||
1 | conditions, and requirements, including the prices to be | ||||||
2 | paid for renewable energy credits, where applicable, and | ||||||
3 | requirements applicable to participating entities and | ||||||
4 | project applications, through the development, review, and | ||||||
5 | approval of the Agency's long-term renewable resources | ||||||
6 | procurement plan described in this subsection (c) and | ||||||
7 | paragraph (5) of subsection (b) of Section 16-111.5 of the | ||||||
8 | Public Utilities Act. Terms, conditions, and requirements | ||||||
9 | for program participation shall include the following: | ||||||
10 | (i) The Agency shall establish a registration | ||||||
11 | process for entities seeking to qualify for | ||||||
12 | program-administered incentive funding and establish | ||||||
13 | baseline qualifications for vendor approval. The | ||||||
14 | Agency must maintain a list of approved entities on | ||||||
15 | each program's website, and may revoke a vendor's | ||||||
16 | ability to receive program-administered incentive | ||||||
17 | funding status upon a determination that the vendor | ||||||
18 | failed to comply with contract terms, the law, or | ||||||
19 | other program requirements. | ||||||
20 | (ii) The Agency shall establish program | ||||||
21 | requirements and minimum contract terms to ensure | ||||||
22 | projects are properly installed and produce their | ||||||
23 | expected amounts of energy. Program requirements may | ||||||
24 | include on-site inspections and photo documentation of | ||||||
25 | projects under construction. The Agency may require | ||||||
26 | repairs, alterations, or additions to remedy any |
| |||||||
| |||||||
1 | material deficiencies discovered. Vendors who have a | ||||||
2 | disproportionately high number of deficient systems | ||||||
3 | may lose their eligibility to continue to receive | ||||||
4 | State-administered incentive funding through Agency | ||||||
5 | programs and procurements. | ||||||
6 | (iii) To discourage deceptive marketing or other | ||||||
7 | bad faith business practices, the Agency may require | ||||||
8 | direct program participants, including agents | ||||||
9 | operating on their behalf, to provide standardized | ||||||
10 | disclosures to a customer prior to that customer's | ||||||
11 | execution of a contract for the development of a | ||||||
12 | distributed generation system or a subscription to a | ||||||
13 | community solar project. | ||||||
14 | (iv) The Agency shall establish one or multiple | ||||||
15 | Consumer Complaints Centers to accept complaints | ||||||
16 | regarding businesses that participate in, or otherwise | ||||||
17 | benefit from, State-administered incentive funding | ||||||
18 | through Agency-administered programs. The Agency shall | ||||||
19 | maintain a public database of complaints with any | ||||||
20 | confidential or particularly sensitive information | ||||||
21 | redacted from public entries. | ||||||
22 | (v) Through a filing in the proceeding for the | ||||||
23 | approval of its long-term renewable energy resources | ||||||
24 | procurement plan, the Agency shall provide an annual | ||||||
25 | written report to the Illinois Commerce Commission | ||||||
26 | documenting the frequency and nature of complaints and |
| |||||||
| |||||||
1 | any enforcement actions taken in response to those | ||||||
2 | complaints. | ||||||
3 | (vi) The Agency shall schedule regular meetings | ||||||
4 | with representatives of the Office of the Attorney | ||||||
5 | General, the Illinois Commerce Commission, consumer | ||||||
6 | protection groups, and other interested stakeholders | ||||||
7 | to share relevant information about consumer | ||||||
8 | protection, project compliance, and complaints | ||||||
9 | received. | ||||||
10 | (vii) To the extent that complaints received | ||||||
11 | implicate the jurisdiction of the Office of the | ||||||
12 | Attorney General, the Illinois Commerce Commission, or | ||||||
13 | local, State, or federal law enforcement, the Agency | ||||||
14 | shall also refer complaints to those entities as | ||||||
15 | appropriate. | ||||||
16 | (N) The Agency shall establish the terms, conditions, | ||||||
17 | and program requirements for photovoltaic community | ||||||
18 | renewable generation projects with a goal to expand access | ||||||
19 | to a broader group of energy consumers, to ensure robust | ||||||
20 | participation opportunities for residential and small | ||||||
21 | commercial customers and those who cannot install | ||||||
22 | renewable energy on their own properties. Subject to | ||||||
23 | reasonable limitations, any plan approved by the | ||||||
24 | Commission shall allow subscriptions to community | ||||||
25 | renewable generation projects to be portable and | ||||||
26 | transferable. For purposes of this subparagraph (N), |
| |||||||
| |||||||
1 | "portable" means that subscriptions may be retained by the | ||||||
2 | subscriber even if the subscriber relocates or changes its | ||||||
3 | address within the same utility service territory; and | ||||||
4 | "transferable" means that a subscriber may assign or sell | ||||||
5 | subscriptions to another person within the same utility | ||||||
6 | service territory. | ||||||
7 | Through the development of its long-term renewable | ||||||
8 | resources procurement plan, the Agency may consider | ||||||
9 | whether community renewable generation projects utilizing | ||||||
10 | technologies other than photovoltaics should be supported | ||||||
11 | through State-administered incentive funding, and may | ||||||
12 | issue requests for information to gauge market demand. | ||||||
13 | Electric utilities shall provide a monetary credit to | ||||||
14 | a subscriber's subsequent bill for service for the | ||||||
15 | proportional output of a community renewable generation | ||||||
16 | project attributable to that subscriber as specified in | ||||||
17 | Section 16-107.5 of the Public Utilities Act. | ||||||
18 | The Agency shall purchase renewable energy credits | ||||||
19 | from subscribed shares of photovoltaic community renewable | ||||||
20 | generation projects through the Adjustable Block program | ||||||
21 | described in subparagraph (K) of this paragraph (1) or | ||||||
22 | through the Illinois Solar for All Program described in | ||||||
23 | Section 1-56 of this Act. The electric utility shall | ||||||
24 | purchase any unsubscribed energy from community renewable | ||||||
25 | generation projects that are Qualifying Facilities ("QF") | ||||||
26 | under the electric utility's tariff for purchasing the |
| |||||||
| |||||||
1 | output from QFs under Public Utilities Regulatory Policies | ||||||
2 | Act of 1978. | ||||||
3 | The owners of and any subscribers to a community | ||||||
4 | renewable generation project shall not be considered | ||||||
5 | public utilities or alternative retail electricity | ||||||
6 | suppliers under the Public Utilities Act solely as a | ||||||
7 | result of their interest in or subscription to a community | ||||||
8 | renewable generation project and shall not be required to | ||||||
9 | become an alternative retail electric supplier by | ||||||
10 | participating in a community renewable generation project | ||||||
11 | with a public utility. | ||||||
12 | (O) For the delivery year beginning June 1, 2018, the | ||||||
13 | long-term renewable resources procurement plan required by | ||||||
14 | this subsection (c) shall provide for the Agency to | ||||||
15 | procure contracts to continue offering the Illinois Solar | ||||||
16 | for All Program described in subsection (b) of Section | ||||||
17 | 1-56 of this Act, and the contracts approved by the | ||||||
18 | Commission shall be executed by the utilities that are | ||||||
19 | subject to this subsection (c). The long-term renewable | ||||||
20 | resources procurement plan shall allocate up to | ||||||
21 | $50,000,000 per delivery year to fund the programs, and | ||||||
22 | the plan shall determine the amount of funding to be | ||||||
23 | apportioned to the programs identified in subsection (b) | ||||||
24 | of Section 1-56 of this Act; provided that for the | ||||||
25 | delivery years beginning June 1, 2021, June 1, 2022, and | ||||||
26 | June 1, 2023, the long-term renewable resources |
| |||||||
| |||||||
1 | procurement plan may average the annual budgets over a | ||||||
2 | 3-year period to account for program ramp-up. For the | ||||||
3 | delivery years beginning June 1, 2021, June 1, 2024, June | ||||||
4 | 1, 2027, and June 1, 2030 and additional $10,000,000 shall | ||||||
5 | be provided to the Department of Commerce and Economic | ||||||
6 | Opportunity to implement the workforce development | ||||||
7 | programs and reporting as outlined in Section 16-108.12 of | ||||||
8 | the Public Utilities Act. In making the determinations | ||||||
9 | required under this subparagraph (O), the Commission shall | ||||||
10 | consider the experience and performance under the programs | ||||||
11 | and any evaluation reports. The Commission shall also | ||||||
12 | provide for an independent evaluation of those programs on | ||||||
13 | a periodic basis that are funded under this subparagraph | ||||||
14 | (O). | ||||||
15 | (P) All programs and procurements under this | ||||||
16 | subsection (c) shall be designed to encourage | ||||||
17 | participating projects to use a diverse and equitable | ||||||
18 | workforce and a diverse set of contractors, including | ||||||
19 | minority-owned businesses, disadvantaged businesses, | ||||||
20 | trade unions, graduates of any workforce training programs | ||||||
21 | administered under this Act, and small businesses. | ||||||
22 | The Agency shall develop a method to optimize | ||||||
23 | procurement of renewable energy credits from proposed | ||||||
24 | utility-scale projects that are located in communities | ||||||
25 | eligible to receive Energy Transition Community Grants | ||||||
26 | pursuant to Section 10-20 of the Energy Community |
| |||||||
| |||||||
1 | Reinvestment Act. If this requirement conflicts with other | ||||||
2 | provisions of law or the Agency determines that full | ||||||
3 | compliance with the requirements of this subparagraph (P) | ||||||
4 | would be unreasonably costly or administratively | ||||||
5 | impractical, the Agency is to propose alternative | ||||||
6 | approaches to achieve development of renewable energy | ||||||
7 | resources in communities eligible to receive Energy | ||||||
8 | Transition Community Grants pursuant to Section 10-20 of | ||||||
9 | the Energy Community Reinvestment Act or seek an exemption | ||||||
10 | from this requirement from the Commission. | ||||||
11 | (Q) Each facility listed in subitems (i) through (ix) | ||||||
12 | of item (1) of this subparagraph (Q) for which a renewable | ||||||
13 | energy credit delivery contract is signed after the | ||||||
14 | effective date of this amendatory Act of the 102nd General | ||||||
15 | Assembly is subject to the following requirements through | ||||||
16 | the Agency's long-term renewable resources procurement | ||||||
17 | plan: | ||||||
18 | (1) Each facility shall be subject to the | ||||||
19 | prevailing wage requirements included in the | ||||||
20 | Prevailing Wage Act. The Agency shall require | ||||||
21 | verification that all construction performed on the | ||||||
22 | facility by the renewable energy credit delivery | ||||||
23 | contract holder, its contractors, or its | ||||||
24 | subcontractors relating to construction of the | ||||||
25 | facility is performed by construction employees | ||||||
26 | receiving an amount for that work equal to or greater |
| |||||||
| |||||||
1 | than the general prevailing rate, as that term is | ||||||
2 | defined in Section 3 of the Prevailing Wage Act. For | ||||||
3 | purposes of this item (1), "house of worship" means | ||||||
4 | property that is both (1) used exclusively by a | ||||||
5 | religious society or body of persons as a place for | ||||||
6 | religious exercise or religious worship and (2) | ||||||
7 | recognized as exempt from taxation pursuant to Section | ||||||
8 | 15-40 of the Property Tax Code. This item (1) shall | ||||||
9 | apply to any the following: | ||||||
10 | (i) all new utility-scale wind projects; | ||||||
11 | (ii) all new utility-scale photovoltaic | ||||||
12 | projects; | ||||||
13 | (iii) all new brownfield photovoltaic | ||||||
14 | projects; | ||||||
15 | (iv) all new photovoltaic community renewable | ||||||
16 | energy facilities and any associated energy | ||||||
17 | storage systems that qualify for item (iii) of | ||||||
18 | subparagraph (K) of this paragraph (1); | ||||||
19 | (v) all new community driven community | ||||||
20 | photovoltaic projects and any associated energy | ||||||
21 | storage systems that qualify for item (v) of | ||||||
22 | subparagraph (K) of this paragraph (1); | ||||||
23 | (vi) all new photovoltaic projects on public | ||||||
24 | school land that qualify for item (iv) of | ||||||
25 | subparagraph (K) of this paragraph (1); | ||||||
26 | (vii) all new photovoltaic distributed |
| |||||||
| |||||||
1 | renewable energy generation devices and any | ||||||
2 | associated energy storage systems that (1) qualify | ||||||
3 | for item (i) of subparagraph (K) of this paragraph | ||||||
4 | (1); (2) are not projects that serve single-family | ||||||
5 | or multi-family residential buildings; and (3) are | ||||||
6 | not houses of worship where the aggregate capacity | ||||||
7 | including collocated projects would not exceed 100 | ||||||
8 | kilowatts; | ||||||
9 | (viii) all new photovoltaic distributed | ||||||
10 | renewable energy generation devices and any | ||||||
11 | associated energy storage systems that (1) qualify | ||||||
12 | for item (ii) of subparagraph (K) of this | ||||||
13 | paragraph (1); (2) are not projects that serve | ||||||
14 | single-family or multi-family residential | ||||||
15 | buildings; and (3) are not houses of worship where | ||||||
16 | the aggregate capacity including collocated | ||||||
17 | projects would not exceed 100 kilowatts; | ||||||
18 | (ix) all new, modernized, or retooled | ||||||
19 | hydropower facilities. | ||||||
20 | (2) Renewable energy credits procured from new | ||||||
21 | utility-scale wind projects, new utility-scale solar | ||||||
22 | projects, and new brownfield solar projects pursuant | ||||||
23 | to Agency procurement events occurring after the | ||||||
24 | effective date of this amendatory Act of the 102nd | ||||||
25 | General Assembly must be from facilities built by | ||||||
26 | general contractors that must enter into a project |
| |||||||
| |||||||
1 | labor agreement, as defined by this Act, prior to | ||||||
2 | construction. The project labor agreement shall be | ||||||
3 | filed with the Director in accordance with procedures | ||||||
4 | established by the Agency through its long-term | ||||||
5 | renewable resources procurement plan. Any information | ||||||
6 | submitted to the Agency in this item (2) shall be | ||||||
7 | considered commercially sensitive information. At a | ||||||
8 | minimum, the project labor agreement must provide the | ||||||
9 | names, addresses, and occupations of the owner of the | ||||||
10 | plant and the individuals representing the labor | ||||||
11 | organization employees participating in the project | ||||||
12 | labor agreement consistent with the Project Labor | ||||||
13 | Agreements Act. The agreement must also specify the | ||||||
14 | terms and conditions as defined by this Act. | ||||||
15 | (3) It is the intent of this Section to ensure that | ||||||
16 | economic development occurs across Illinois | ||||||
17 | communities, that emerging businesses may grow, and | ||||||
18 | that there is improved access to the clean energy | ||||||
19 | economy by persons who have greater economic burdens | ||||||
20 | to success. The Agency shall take into consideration | ||||||
21 | the unique cost of compliance of this subparagraph (Q) | ||||||
22 | that might be borne by equity eligible contractors, | ||||||
23 | shall include such costs when determining the price of | ||||||
24 | renewable energy credits in the Adjustable Block | ||||||
25 | program, and shall take such costs into consideration | ||||||
26 | in a nondiscriminatory manner when comparing bids for |
| |||||||
| |||||||
1 | competitive procurements. The Agency shall consider | ||||||
2 | costs associated with compliance whether in the | ||||||
3 | development, financing, or construction of projects. | ||||||
4 | The Agency shall periodically review the assumptions | ||||||
5 | in these costs and may adjust prices, in compliance | ||||||
6 | with subparagraph (M) of this paragraph (1). | ||||||
7 | (R) In its long-term renewable resources procurement | ||||||
8 | plan, the Agency shall establish a self-direct renewable | ||||||
9 | portfolio standard compliance program for eligible | ||||||
10 | self-direct customers that purchase renewable energy | ||||||
11 | credits from utility-scale wind and solar projects through | ||||||
12 | long-term agreements for purchase of renewable energy | ||||||
13 | credits as described in this Section. Such long-term | ||||||
14 | agreements may include the purchase of energy or other | ||||||
15 | products on a physical or financial basis and may involve | ||||||
16 | an alternative retail electric supplier as defined in | ||||||
17 | Section 16-102 of the Public Utilities Act. This program | ||||||
18 | shall take effect in the delivery year commencing June 1, | ||||||
19 | 2023. | ||||||
20 | (1) For the purposes of this subparagraph: | ||||||
21 | "Eligible self-direct customer" means any retail | ||||||
22 | customers of an electric utility that serves 3,000,000 | ||||||
23 | or more retail customers in the State and whose total | ||||||
24 | highest 30-minute demand was more than 10,000 | ||||||
25 | kilowatts, or any retail customers of an electric | ||||||
26 | utility that serves less than 3,000,000 retail |
| |||||||
| |||||||
1 | customers but more than 500,000 retail customers in | ||||||
2 | the State and whose total highest 15-minute demand was | ||||||
3 | more than 10,000 kilowatts. | ||||||
4 | "Retail customer" has the meaning set forth in | ||||||
5 | Section 16-102 of the Public Utilities Act and | ||||||
6 | multiple retail customer accounts under the same | ||||||
7 | corporate parent may aggregate their account demands | ||||||
8 | to meet the 10,000 kilowatt threshold. The criteria | ||||||
9 | for determining whether this subparagraph is | ||||||
10 | applicable to a retail customer shall be based on the | ||||||
11 | 12 consecutive billing periods prior to the start of | ||||||
12 | the year in which the application is filed. | ||||||
13 | (2) For renewable energy credits to count toward | ||||||
14 | the self-direct renewable portfolio standard | ||||||
15 | compliance program, they must: | ||||||
16 | (i) qualify as renewable energy credits as | ||||||
17 | defined in Section 1-10 of this Act; | ||||||
18 | (ii) be sourced from one or more renewable | ||||||
19 | energy generating facilities that comply with the | ||||||
20 | geographic requirements as set forth in | ||||||
21 | subparagraph (I) of paragraph (1) of subsection | ||||||
22 | (c) as interpreted through the Agency's long-term | ||||||
23 | renewable resources procurement plan, or, where | ||||||
24 | applicable, the geographic requirements that | ||||||
25 | governed utility-scale renewable energy credits at | ||||||
26 | the time the eligible self-direct customer entered |
| |||||||
| |||||||
1 | into the applicable renewable energy credit | ||||||
2 | purchase agreement; | ||||||
3 | (iii) be procured through long-term contracts | ||||||
4 | with term lengths of at least 10 years either | ||||||
5 | directly with the renewable energy generating | ||||||
6 | facility or through a bundled power purchase | ||||||
7 | agreement, a virtual power purchase agreement, an | ||||||
8 | agreement between the renewable generating | ||||||
9 | facility, an alternative retail electric supplier, | ||||||
10 | and the customer, or such other structure as is | ||||||
11 | permissible under this subparagraph (R); | ||||||
12 | (iv) be equivalent in volume to at least 40% | ||||||
13 | of the eligible self-direct customer's usage, | ||||||
14 | determined annually by the eligible self-direct | ||||||
15 | customer's usage during the previous delivery | ||||||
16 | year, measured to the nearest megawatt-hour; | ||||||
17 | (v) be retired by or on behalf of the large | ||||||
18 | energy customer; | ||||||
19 | (vi) be sourced from new utility-scale wind | ||||||
20 | projects or new utility-scale solar projects; and | ||||||
21 | (vii) if the contracts for renewable energy | ||||||
22 | credits are entered into after the effective date | ||||||
23 | of this amendatory Act of the 102nd General | ||||||
24 | Assembly, the new utility-scale wind projects or | ||||||
25 | new utility-scale solar projects must comply with | ||||||
26 | the requirements established in subparagraphs (P) |
| |||||||
| |||||||
1 | and (Q) of paragraph (1) of this subsection (c) | ||||||
2 | and subsection (c-10). | ||||||
3 | (3) The self-direct renewable portfolio standard | ||||||
4 | compliance program shall be designed to allow eligible | ||||||
5 | self-direct customers to procure new renewable energy | ||||||
6 | credits from new utility-scale wind projects or new | ||||||
7 | utility-scale photovoltaic projects. The Agency shall | ||||||
8 | annually determine the amount of utility-scale | ||||||
9 | renewable energy credits it will include each year | ||||||
10 | from the self-direct renewable portfolio standard | ||||||
11 | compliance program, subject to receiving qualifying | ||||||
12 | applications. In making this determination, the Agency | ||||||
13 | shall evaluate publicly available analyses and studies | ||||||
14 | of the potential market size for utility-scale | ||||||
15 | renewable energy long-term purchase agreements by | ||||||
16 | commercial and industrial energy customers and make | ||||||
17 | that report publicly available. If demand for | ||||||
18 | participation in the self-direct renewable portfolio | ||||||
19 | standard compliance program exceeds availability, the | ||||||
20 | Agency shall ensure participation is evenly split | ||||||
21 | between commercial and industrial users to the extent | ||||||
22 | there is sufficient demand from both customer classes. | ||||||
23 | Each renewable energy credit procured pursuant to this | ||||||
24 | subparagraph (R) by a self-direct customer shall | ||||||
25 | reduce the total volume of renewable energy credits | ||||||
26 | the Agency is otherwise required to procure from new |
| |||||||
| |||||||
1 | utility-scale projects pursuant to subparagraph (C) of | ||||||
2 | paragraph (1) of this subsection (c) on behalf of | ||||||
3 | contracting utilities where the eligible self-direct | ||||||
4 | customer is located. The self-direct customer shall | ||||||
5 | file an annual compliance report with the Agency | ||||||
6 | pursuant to terms established by the Agency through | ||||||
7 | its long-term renewable resources procurement plan to | ||||||
8 | be eligible for participation in this program. | ||||||
9 | Customers must provide the Agency with their most | ||||||
10 | recent electricity billing statements or other | ||||||
11 | information deemed necessary by the Agency to | ||||||
12 | demonstrate they are an eligible self-direct customer. | ||||||
13 | (4) The Commission shall approve a reduction in | ||||||
14 | the volumetric charges collected pursuant to Section | ||||||
15 | 16-108 of the Public Utilities Act for approved | ||||||
16 | eligible self-direct customers equivalent to the | ||||||
17 | anticipated cost of renewable energy credit deliveries | ||||||
18 | under contracts for new utility-scale wind and new | ||||||
19 | utility-scale solar entered for each delivery year | ||||||
20 | after the large energy customer begins retiring | ||||||
21 | eligible new utility scale renewable energy credits | ||||||
22 | for self-compliance. The self-direct credit amount | ||||||
23 | shall be determined annually and is equal to the | ||||||
24 | estimated portion of the cost authorized by | ||||||
25 | subparagraph (E) of paragraph (1) of this subsection | ||||||
26 | (c) that supported the annual procurement of |
| |||||||
| |||||||
1 | utility-scale renewable energy credits in the prior | ||||||
2 | delivery year using a methodology described in the | ||||||
3 | long-term renewable resources procurement plan, | ||||||
4 | expressed on a per kilowatthour basis, and does not | ||||||
5 | include (i) costs associated with any contracts | ||||||
6 | entered into before the delivery year in which the | ||||||
7 | customer files the initial compliance report to be | ||||||
8 | eligible for participation in the self-direct program, | ||||||
9 | and (ii) costs associated with procuring renewable | ||||||
10 | energy credits through existing and future contracts | ||||||
11 | through the Adjustable Block Program, subsection (c-5) | ||||||
12 | of this Section 1-75, and the Solar for All Program. | ||||||
13 | The Agency shall assist the Commission in determining | ||||||
14 | the current and future costs. The Agency must | ||||||
15 | determine the self-direct credit amount for new and | ||||||
16 | existing eligible self-direct customers and submit | ||||||
17 | this to the Commission in an annual compliance filing. | ||||||
18 | The Commission must approve the self-direct credit | ||||||
19 | amount by June 1, 2023 and June 1 of each delivery year | ||||||
20 | thereafter. | ||||||
21 | (5) Customers described in this subparagraph (R) | ||||||
22 | shall apply, on a form developed by the Agency, to the | ||||||
23 | Agency to be designated as a self-direct eligible | ||||||
24 | customer. Once the Agency determines that a | ||||||
25 | self-direct customer is eligible for participation in | ||||||
26 | the program, the self-direct customer will remain |
| |||||||
| |||||||
1 | eligible until the end of the term of the contract. | ||||||
2 | Thereafter, application may be made not less than 12 | ||||||
3 | months before the filing date of the long-term | ||||||
4 | renewable resources procurement plan described in this | ||||||
5 | Act. At a minimum, such application shall contain the | ||||||
6 | following: | ||||||
7 | (i) the customer's certification that, at the | ||||||
8 | time of the customer's application, the customer | ||||||
9 | qualifies to be a self-direct eligible customer, | ||||||
10 | including documents demonstrating that | ||||||
11 | qualification; | ||||||
12 | (ii) the customer's certification that the | ||||||
13 | customer has entered into or will enter into by | ||||||
14 | the beginning of the applicable procurement year, | ||||||
15 | one or more bilateral contracts for new wind | ||||||
16 | projects or new photovoltaic projects, including | ||||||
17 | supporting documentation; | ||||||
18 | (iii) certification that the contract or | ||||||
19 | contracts for new renewable energy resources are | ||||||
20 | long-term contracts with term lengths of at least | ||||||
21 | 10 years, including supporting documentation; | ||||||
22 | (iv) certification of the quantities of | ||||||
23 | renewable energy credits that the customer will | ||||||
24 | purchase each year under such contract or | ||||||
25 | contracts, including supporting documentation; | ||||||
26 | (v) proof that the contract is sufficient to |
| |||||||
| |||||||
1 | produce renewable energy credits to be equivalent | ||||||
2 | in volume to at least 40% of the large energy | ||||||
3 | customer's usage from the previous delivery year, | ||||||
4 | measured to the nearest megawatt-hour; and | ||||||
5 | (vi) certification that the customer intends | ||||||
6 | to maintain the contract for the duration of the | ||||||
7 | length of the contract. | ||||||
8 | (6) If a customer receives the self-direct credit | ||||||
9 | but fails to properly procure and retire renewable | ||||||
10 | energy credits as required under this subparagraph | ||||||
11 | (R), the Commission, on petition from the Agency and | ||||||
12 | after notice and hearing, may direct such customer's | ||||||
13 | utility to recover the cost of the wrongfully received | ||||||
14 | self-direct credits plus interest through an adder to | ||||||
15 | charges assessed pursuant to Section 16-108 of the | ||||||
16 | Public Utilities Act. Self-direct customers who | ||||||
17 | knowingly fail to properly procure and retire | ||||||
18 | renewable energy credits and do not notify the Agency | ||||||
19 | are ineligible for continued participation in the | ||||||
20 | self-direct renewable portfolio standard compliance | ||||||
21 | program. | ||||||
22 | (2) (Blank). | ||||||
23 | (3) (Blank). | ||||||
24 | (4) The electric utility shall retire all renewable | ||||||
25 | energy credits used to comply with the standard. | ||||||
26 | (5) Beginning with the 2010 delivery year and ending |
| |||||||
| |||||||
1 | June 1, 2017, an electric utility subject to this | ||||||
2 | subsection (c) shall apply the lesser of the maximum | ||||||
3 | alternative compliance payment rate or the most recent | ||||||
4 | estimated alternative compliance payment rate for its | ||||||
5 | service territory for the corresponding compliance period, | ||||||
6 | established pursuant to subsection (d) of Section 16-115D | ||||||
7 | of the Public Utilities Act to its retail customers that | ||||||
8 | take service pursuant to the electric utility's hourly | ||||||
9 | pricing tariff or tariffs. The electric utility shall | ||||||
10 | retain all amounts collected as a result of the | ||||||
11 | application of the alternative compliance payment rate or | ||||||
12 | rates to such customers, and, beginning in 2011, the | ||||||
13 | utility shall include in the information provided under | ||||||
14 | item (1) of subsection (d) of Section 16-111.5 of the | ||||||
15 | Public Utilities Act the amounts collected under the | ||||||
16 | alternative compliance payment rate or rates for the prior | ||||||
17 | year ending May 31. Notwithstanding any limitation on the | ||||||
18 | procurement of renewable energy resources imposed by item | ||||||
19 | (2) of this subsection (c), the Agency shall increase its | ||||||
20 | spending on the purchase of renewable energy resources to | ||||||
21 | be procured by the electric utility for the next plan year | ||||||
22 | by an amount equal to the amounts collected by the utility | ||||||
23 | under the alternative compliance payment rate or rates in | ||||||
24 | the prior year ending May 31. | ||||||
25 | (6) The electric utility shall be entitled to recover | ||||||
26 | all of its costs associated with the procurement of |
| |||||||
| |||||||
1 | renewable energy credits under plans approved under this | ||||||
2 | Section and Section 16-111.5 of the Public Utilities Act. | ||||||
3 | These costs shall include associated reasonable expenses | ||||||
4 | for implementing the procurement programs, including, but | ||||||
5 | not limited to, the costs of administering and evaluating | ||||||
6 | the Adjustable Block program, through an automatic | ||||||
7 | adjustment clause tariff in accordance with subsection (k) | ||||||
8 | of Section 16-108 of the Public Utilities Act. | ||||||
9 | (7) Renewable energy credits procured from new | ||||||
10 | photovoltaic projects or new distributed renewable energy | ||||||
11 | generation devices under this Section after June 1, 2017 | ||||||
12 | (the effective date of Public Act 99-906) must be procured | ||||||
13 | from devices installed by a qualified person in compliance | ||||||
14 | with the requirements of Section 16-128A of the Public | ||||||
15 | Utilities Act and any rules or regulations adopted | ||||||
16 | thereunder. | ||||||
17 | In meeting the renewable energy requirements of this | ||||||
18 | subsection (c), to the extent feasible and consistent with | ||||||
19 | State and federal law, the renewable energy credit | ||||||
20 | procurements, Adjustable Block solar program, and | ||||||
21 | community renewable generation program shall provide | ||||||
22 | employment opportunities for all segments of the | ||||||
23 | population and workforce, including minority-owned and | ||||||
24 | female-owned business enterprises, and shall not, | ||||||
25 | consistent with State and federal law, discriminate based | ||||||
26 | on race or socioeconomic status. |
| |||||||
| |||||||
1 | (c-5) Procurement of renewable energy credits from new | ||||||
2 | renewable energy facilities installed at or adjacent to the | ||||||
3 | sites of electric generating facilities that burn or burned | ||||||
4 | coal as their primary fuel source. | ||||||
5 | (1) In addition to the procurement of renewable energy | ||||||
6 | credits pursuant to long-term renewable resources | ||||||
7 | procurement plans in accordance with subsection (c) of | ||||||
8 | this Section and Section 16-111.5 of the Public Utilities | ||||||
9 | Act, the Agency shall conduct procurement events in | ||||||
10 | accordance with this subsection (c-5) for the procurement | ||||||
11 | by electric utilities that served more than 300,000 retail | ||||||
12 | customers in this State as of January 1, 2019 of renewable | ||||||
13 | energy credits from new renewable energy facilities to be | ||||||
14 | installed at or adjacent to the sites of electric | ||||||
15 | generating facilities that, as of January 1, 2016, burned | ||||||
16 | coal as their primary fuel source and meet the other | ||||||
17 | criteria specified in this subsection (c-5). For purposes | ||||||
18 | of this subsection (c-5), "new renewable energy facility" | ||||||
19 | means a new utility-scale solar project as defined in this | ||||||
20 | Section 1-75. The renewable energy credits procured | ||||||
21 | pursuant to this subsection (c-5) may be included or | ||||||
22 | counted for purposes of compliance with the amounts of | ||||||
23 | renewable energy credits required to be procured pursuant | ||||||
24 | to subsection (c) of this Section to the extent that there | ||||||
25 | are otherwise shortfalls in compliance with such | ||||||
26 | requirements. The procurement of renewable energy credits |
| |||||||
| |||||||
1 | by electric utilities pursuant to this subsection (c-5) | ||||||
2 | shall be funded solely by revenues collected from the Coal | ||||||
3 | to Solar and Energy Storage Initiative Charge provided for | ||||||
4 | in this subsection (c-5) and subsection (i-5) of Section | ||||||
5 | 16-108 of the Public Utilities Act, shall not be funded by | ||||||
6 | revenues collected through any of the other funding | ||||||
7 | mechanisms provided for in subsection (c) of this Section, | ||||||
8 | and shall not be subject to the limitation imposed by | ||||||
9 | subsection (c) on charges to retail customers for costs to | ||||||
10 | procure renewable energy resources pursuant to subsection | ||||||
11 | (c), and shall not be subject to any other requirements or | ||||||
12 | limitations of subsection (c). | ||||||
13 | (2) The Agency shall conduct 2 procurement events to | ||||||
14 | select owners of electric generating facilities meeting | ||||||
15 | the eligibility criteria specified in this subsection | ||||||
16 | (c-5) to enter into long-term contracts to sell renewable | ||||||
17 | energy credits to electric utilities serving more than | ||||||
18 | 300,000 retail customers in this State as of January 1, | ||||||
19 | 2019. The first procurement event shall be conducted no | ||||||
20 | later than March 31, 2022, unless the Agency elects to | ||||||
21 | delay it, until no later than May 1, 2022, due to its | ||||||
22 | overall volume of work, and shall be to select owners of | ||||||
23 | electric generating facilities located in this State and | ||||||
24 | south of federal Interstate Highway 80 that meet the | ||||||
25 | eligibility criteria specified in this subsection (c-5). | ||||||
26 | The second procurement event shall be conducted no sooner |
| |||||||
| |||||||
1 | than September 30, 2022 and no later than October 31, 2022 | ||||||
2 | and shall be to select owners of electric generating | ||||||
3 | facilities located anywhere in this State that meet the | ||||||
4 | eligibility criteria specified in this subsection (c-5). | ||||||
5 | The Agency shall establish and announce a time period, | ||||||
6 | which shall begin no later than 30 days prior to the | ||||||
7 | scheduled date for the procurement event, during which | ||||||
8 | applicants may submit applications to be selected as | ||||||
9 | suppliers of renewable energy credits pursuant to this | ||||||
10 | subsection (c-5). The eligibility criteria for selection | ||||||
11 | as a supplier of renewable energy credits pursuant to this | ||||||
12 | subsection (c-5) shall be as follows: | ||||||
13 | (A) The applicant owns an electric generating | ||||||
14 | facility located in this State that: (i) as of January | ||||||
15 | 1, 2016, burned coal as its primary fuel to generate | ||||||
16 | electricity; and (ii) has, or had prior to retirement, | ||||||
17 | an electric generating capacity of at least 150 | ||||||
18 | megawatts. The electric generating facility can be | ||||||
19 | either: (i) retired as of the date of the procurement | ||||||
20 | event; or (ii) still operating as of the date of the | ||||||
21 | procurement event. | ||||||
22 | (B) The applicant is not (i) an electric | ||||||
23 | cooperative as defined in Section 3-119 of the Public | ||||||
24 | Utilities Act, or (ii) an entity described in | ||||||
25 | subsection (b)(1) of Section 3-105 of the Public | ||||||
26 | Utilities Act, or an association or consortium of or |
| |||||||
| |||||||
1 | an entity owned by entities described in (i) or (ii); | ||||||
2 | and the coal-fueled electric generating facility was | ||||||
3 | at one time owned, in whole or in part, by a public | ||||||
4 | utility as defined in Section 3-105 of the Public | ||||||
5 | Utilities Act. | ||||||
6 | (C) If participating in the first procurement | ||||||
7 | event, the applicant proposes and commits to construct | ||||||
8 | and operate, at the site, and if necessary for | ||||||
9 | sufficient space on property adjacent to the existing | ||||||
10 | property, at which the electric generating facility | ||||||
11 | identified in paragraph (A) is located: (i) a new | ||||||
12 | renewable energy facility of at least 20 megawatts but | ||||||
13 | no more than 100 megawatts of electric generating | ||||||
14 | capacity, and (ii) an energy storage facility having a | ||||||
15 | storage capacity equal to at least 2 megawatts and at | ||||||
16 | most 10 megawatts. If participating in the second | ||||||
17 | procurement event, the applicant proposes and commits | ||||||
18 | to construct and operate, at the site, and if | ||||||
19 | necessary for sufficient space on property adjacent to | ||||||
20 | the existing property, at which the electric | ||||||
21 | generating facility identified in paragraph (A) is | ||||||
22 | located: (i) a new renewable energy facility of at | ||||||
23 | least 5 megawatts but no more than 20 megawatts of | ||||||
24 | electric generating capacity, and (ii) an energy | ||||||
25 | storage facility having a storage capacity equal to at | ||||||
26 | least 0.5 megawatts and at most one megawatt. |
| |||||||
| |||||||
1 | (D) The applicant agrees that the new renewable | ||||||
2 | energy facility and the energy storage facility will | ||||||
3 | be constructed or installed by a qualified entity or | ||||||
4 | entities in compliance with the requirements of | ||||||
5 | subsection (g) of Section 16-128A of the Public | ||||||
6 | Utilities Act and any rules adopted thereunder. | ||||||
7 | (E) The applicant agrees that personnel operating | ||||||
8 | the new renewable energy facility and the energy | ||||||
9 | storage facility will have the requisite skills, | ||||||
10 | knowledge, training, experience, and competence, which | ||||||
11 | may be demonstrated by completion or current | ||||||
12 | participation and ultimate completion by employees of | ||||||
13 | an accredited or otherwise recognized apprenticeship | ||||||
14 | program for the employee's particular craft, trade, or | ||||||
15 | skill, including through training and education | ||||||
16 | courses and opportunities offered by the owner to | ||||||
17 | employees of the coal-fueled electric generating | ||||||
18 | facility or by previous employment experience | ||||||
19 | performing the employee's particular work skill or | ||||||
20 | function. | ||||||
21 | (F) The applicant commits that not less than the | ||||||
22 | prevailing wage, as determined pursuant to the | ||||||
23 | Prevailing Wage Act, will be paid to the applicant's | ||||||
24 | employees engaged in construction activities | ||||||
25 | associated with the new renewable energy facility and | ||||||
26 | the new energy storage facility and to the employees |
| |||||||
| |||||||
1 | of applicant's contractors engaged in construction | ||||||
2 | activities associated with the new renewable energy | ||||||
3 | facility and the new energy storage facility, and | ||||||
4 | that, on or before the commercial operation date of | ||||||
5 | the new renewable energy facility, the applicant shall | ||||||
6 | file a report with the Agency certifying that the | ||||||
7 | requirements of this subparagraph (F) have been met. | ||||||
8 | (G) The applicant commits that if selected, it | ||||||
9 | will negotiate a project labor agreement for the | ||||||
10 | construction of the new renewable energy facility and | ||||||
11 | associated energy storage facility that includes | ||||||
12 | provisions requiring the parties to the agreement to | ||||||
13 | work together to establish diversity threshold | ||||||
14 | requirements and to ensure best efforts to meet | ||||||
15 | diversity targets, improve diversity at the applicable | ||||||
16 | job site, create diverse apprenticeship opportunities, | ||||||
17 | and create opportunities to employ former coal-fired | ||||||
18 | power plant workers. | ||||||
19 | (H) The applicant commits to enter into a contract | ||||||
20 | or contracts for the applicable duration to provide | ||||||
21 | specified numbers of renewable energy credits each | ||||||
22 | year from the new renewable energy facility to | ||||||
23 | electric utilities that served more than 300,000 | ||||||
24 | retail customers in this State as of January 1, 2019, | ||||||
25 | at a price of $30 per renewable energy credit. The | ||||||
26 | price per renewable energy credit shall be fixed at |
| |||||||
| |||||||
1 | $30 for the applicable duration and the renewable | ||||||
2 | energy credits shall not be indexed renewable energy | ||||||
3 | credits as provided for in item (v) of subparagraph | ||||||
4 | (G) of paragraph (1) of subsection (c) of Section 1-75 | ||||||
5 | of this Act. The applicable duration of each contract | ||||||
6 | shall be 20 years, unless the applicant is physically | ||||||
7 | interconnected to the PJM Interconnection, LLC | ||||||
8 | transmission grid and had a generating capacity of at | ||||||
9 | least 1,200 megawatts as of January 1, 2021, in which | ||||||
10 | case the applicable duration of the contract shall be | ||||||
11 | 15 years. | ||||||
12 | (I) The applicant's application is certified by an | ||||||
13 | officer of the applicant and by an officer of the | ||||||
14 | applicant's ultimate parent company, if any. | ||||||
15 | (3) An applicant may submit applications to contract | ||||||
16 | to supply renewable energy credits from more than one new | ||||||
17 | renewable energy facility to be constructed at or adjacent | ||||||
18 | to one or more qualifying electric generating facilities | ||||||
19 | owned by the applicant. The Agency may select new | ||||||
20 | renewable energy facilities to be located at or adjacent | ||||||
21 | to the sites of more than one qualifying electric | ||||||
22 | generation facility owned by an applicant to contract with | ||||||
23 | electric utilities to supply renewable energy credits from | ||||||
24 | such facilities. | ||||||
25 | (4) The Agency shall assess fees to each applicant to | ||||||
26 | recover the Agency's costs incurred in receiving and |
| |||||||
| |||||||
1 | evaluating applications, conducting the procurement event, | ||||||
2 | developing contracts for sale, delivery and purchase of | ||||||
3 | renewable energy credits, and monitoring the | ||||||
4 | administration of such contracts, as provided for in this | ||||||
5 | subsection (c-5), including fees paid to a procurement | ||||||
6 | administrator retained by the Agency for one or more of | ||||||
7 | these purposes. | ||||||
8 | (5) The Agency shall select the applicants and the new | ||||||
9 | renewable energy facilities to contract with electric | ||||||
10 | utilities to supply renewable energy credits in accordance | ||||||
11 | with this subsection (c-5). In the first procurement | ||||||
12 | event, the Agency shall select applicants and new | ||||||
13 | renewable energy facilities to supply renewable energy | ||||||
14 | credits, at a price of $30 per renewable energy credit, | ||||||
15 | aggregating to no less than 400,000 renewable energy | ||||||
16 | credits per year for the applicable duration, assuming | ||||||
17 | sufficient qualifying applications to supply, in the | ||||||
18 | aggregate, at least that amount of renewable energy | ||||||
19 | credits per year; and not more than 580,000 renewable | ||||||
20 | energy credits per year for the applicable duration. In | ||||||
21 | the second procurement event, the Agency shall select | ||||||
22 | applicants and new renewable energy facilities to supply | ||||||
23 | renewable energy credits, at a price of $30 per renewable | ||||||
24 | energy credit, aggregating to no more than 625,000 | ||||||
25 | renewable energy credits per year less the amount of | ||||||
26 | renewable energy credits each year contracted for as a |
| |||||||
| |||||||
1 | result of the first procurement event, for the applicable | ||||||
2 | durations. The number of renewable energy credits to be | ||||||
3 | procured as specified in this paragraph (5) shall not be | ||||||
4 | reduced based on renewable energy credits procured in the | ||||||
5 | self-direct renewable energy credit compliance program | ||||||
6 | established pursuant to subparagraph (R) of paragraph (1) | ||||||
7 | of subsection (c) of Section 1-75. | ||||||
8 | (6) The obligation to purchase renewable energy | ||||||
9 | credits from the applicants and their new renewable energy | ||||||
10 | facilities selected by the Agency shall be allocated to | ||||||
11 | the electric utilities based on their respective | ||||||
12 | percentages of kilowatthours delivered to delivery | ||||||
13 | services customers to the aggregate kilowatthour | ||||||
14 | deliveries by the electric utilities to delivery services | ||||||
15 | customers for the year ended December 31, 2021. In order | ||||||
16 | to achieve these allocation percentages between or among | ||||||
17 | the electric utilities, the Agency shall require each | ||||||
18 | applicant that is selected in the procurement event to | ||||||
19 | enter into a contract with each electric utility for the | ||||||
20 | sale and purchase of renewable energy credits from each | ||||||
21 | new renewable energy facility to be constructed and | ||||||
22 | operated by the applicant, with the sale and purchase | ||||||
23 | obligations under the contracts to aggregate to the total | ||||||
24 | number of renewable energy credits per year to be supplied | ||||||
25 | by the applicant from the new renewable energy facility. | ||||||
26 | (7) The Agency shall submit its proposed selection of |
| |||||||
| |||||||
1 | applicants, new renewable energy facilities to be | ||||||
2 | constructed, and renewable energy credit amounts for each | ||||||
3 | procurement event to the Commission for approval. The | ||||||
4 | Commission shall, within 2 business days after receipt of | ||||||
5 | the Agency's proposed selections, approve the proposed | ||||||
6 | selections if it determines that the applicants and the | ||||||
7 | new renewable energy facilities to be constructed meet the | ||||||
8 | selection criteria set forth in this subsection (c-5) and | ||||||
9 | that the Agency seeks approval for contracts of applicable | ||||||
10 | durations aggregating to no more than the maximum amount | ||||||
11 | of renewable energy credits per year authorized by this | ||||||
12 | subsection (c-5) for the procurement event, at a price of | ||||||
13 | $30 per renewable energy credit. | ||||||
14 | (8) The Agency, in conjunction with its procurement | ||||||
15 | administrator if one is retained, the electric utilities, | ||||||
16 | and potential applicants for contracts to produce and | ||||||
17 | supply renewable energy credits pursuant to this | ||||||
18 | subsection (c-5), shall develop a standard form contract | ||||||
19 | for the sale, delivery and purchase of renewable energy | ||||||
20 | credits pursuant to this subsection (c-5). Each contract | ||||||
21 | resulting from the first procurement event shall allow for | ||||||
22 | a commercial operation date for the new renewable energy | ||||||
23 | facility of either June 1, 2023 or June 1, 2024, with such | ||||||
24 | dates subject to adjustment as provided in this paragraph. | ||||||
25 | Each contract resulting from the second procurement event | ||||||
26 | shall provide for a commercial operation date on June 1 |
| |||||||
| |||||||
1 | next occurring up to 48 months after execution of the | ||||||
2 | contract. Each contract shall provide that the owner shall | ||||||
3 | receive payments for renewable energy credits for the | ||||||
4 | applicable durations beginning with the commercial | ||||||
5 | operation date of the new renewable energy facility. The | ||||||
6 | form contract shall provide for adjustments to the | ||||||
7 | commercial operation and payment start dates as needed due | ||||||
8 | to any delays in completing the procurement and | ||||||
9 | contracting processes, in finalizing interconnection | ||||||
10 | agreements and installing interconnection facilities, and | ||||||
11 | in obtaining other necessary governmental permits and | ||||||
12 | approvals. The form contract shall be, to the maximum | ||||||
13 | extent possible, consistent with standard electric | ||||||
14 | industry contracts for sale, delivery, and purchase of | ||||||
15 | renewable energy credits while taking into account the | ||||||
16 | specific requirements of this subsection (c-5). The form | ||||||
17 | contract shall provide for over-delivery and | ||||||
18 | under-delivery of renewable energy credits within | ||||||
19 | reasonable ranges during each 12-month period and penalty, | ||||||
20 | default, and enforcement provisions for failure of the | ||||||
21 | selling party to deliver renewable energy credits as | ||||||
22 | specified in the contract and to comply with the | ||||||
23 | requirements of this subsection (c-5). The standard form | ||||||
24 | contract shall specify that all renewable energy credits | ||||||
25 | delivered to the electric utility pursuant to the contract | ||||||
26 | shall be retired. The Agency shall make the proposed |
| |||||||
| |||||||
1 | contracts available for a reasonable period for comment by | ||||||
2 | potential applicants, and shall publish the final form | ||||||
3 | contract at least 30 days before the date of the first | ||||||
4 | procurement event. | ||||||
5 | (9) Coal to Solar and Energy Storage Initiative | ||||||
6 | Charge. | ||||||
7 | (A) By no later than July 1, 2022, each electric | ||||||
8 | utility that served more than 300,000 retail customers | ||||||
9 | in this State as of January 1, 2019 shall file a tariff | ||||||
10 | with the Commission for the billing and collection of | ||||||
11 | a Coal to Solar and Energy Storage Initiative Charge | ||||||
12 | in accordance with subsection (i-5) of Section 16-108 | ||||||
13 | of the Public Utilities Act, with such tariff to be | ||||||
14 | effective, following review and approval or | ||||||
15 | modification by the Commission, beginning January 1, | ||||||
16 | 2023. The tariff shall provide for the calculation and | ||||||
17 | setting of the electric utility's Coal to Solar and | ||||||
18 | Energy Storage Initiative Charge to collect revenues | ||||||
19 | estimated to be sufficient, in the aggregate, (i) to | ||||||
20 | enable the electric utility to pay for the renewable | ||||||
21 | energy credits it has contracted to purchase in the | ||||||
22 | delivery year beginning June 1, 2023 and each delivery | ||||||
23 | year thereafter from new renewable energy facilities | ||||||
24 | located at the sites of qualifying electric generating | ||||||
25 | facilities, and (ii) to fund the grant payments to be | ||||||
26 | made in each delivery year by the Department of |
| |||||||
| |||||||
1 | Commerce and Economic Opportunity, or any successor | ||||||
2 | department or agency, which shall be referred to in | ||||||
3 | this subsection (c-5) as the Department, pursuant to | ||||||
4 | paragraph (10) of this subsection (c-5). The electric | ||||||
5 | utility's tariff shall provide for the billing and | ||||||
6 | collection of the Coal to Solar and Energy Storage | ||||||
7 | Initiative Charge on each kilowatthour of electricity | ||||||
8 | delivered to its delivery services customers within | ||||||
9 | its service territory and shall provide for an annual | ||||||
10 | reconciliation of revenues collected with actual | ||||||
11 | costs, in accordance with subsection (i-5) of Section | ||||||
12 | 16-108 of the Public Utilities Act. | ||||||
13 | (B) Each electric utility shall remit on a monthly | ||||||
14 | basis to the State Treasurer, for deposit in the Coal | ||||||
15 | to Solar and Energy Storage Initiative Fund provided | ||||||
16 | for in this subsection (c-5), the electric utility's | ||||||
17 | collections of the Coal to Solar and Energy Storage | ||||||
18 | Initiative Charge in the amount estimated to be needed | ||||||
19 | by the Department for grant payments pursuant to grant | ||||||
20 | contracts entered into by the Department pursuant to | ||||||
21 | paragraph (10) of this subsection (c-5). | ||||||
22 | (10) Coal to Solar and Energy Storage Initiative Fund. | ||||||
23 | (A) The Coal to Solar and Energy Storage | ||||||
24 | Initiative Fund is established as a special fund in | ||||||
25 | the State treasury. The Coal to Solar and Energy | ||||||
26 | Storage Initiative Fund is authorized to receive, by |
| |||||||
| |||||||
1 | statutory deposit, that portion specified in item (B) | ||||||
2 | of paragraph (9) of this subsection (c-5) of moneys | ||||||
3 | collected by electric utilities through imposition of | ||||||
4 | the Coal to Solar and Energy Storage Initiative Charge | ||||||
5 | required by this subsection (c-5). The Coal to Solar | ||||||
6 | and Energy Storage Initiative Fund shall be | ||||||
7 | administered by the Department to provide grants to | ||||||
8 | support the installation and operation of energy | ||||||
9 | storage facilities at the sites of qualifying electric | ||||||
10 | generating facilities meeting the criteria specified | ||||||
11 | in this paragraph (10). | ||||||
12 | (B) The Coal to Solar and Energy Storage | ||||||
13 | Initiative Fund shall not be subject to sweeps, | ||||||
14 | administrative charges, or chargebacks, including, but | ||||||
15 | not limited to, those authorized under Section 8h of | ||||||
16 | the State Finance Act, that would in any way result in | ||||||
17 | the transfer of those funds from the Coal to Solar and | ||||||
18 | Energy Storage Initiative Fund to any other fund of | ||||||
19 | this State or in having any such funds utilized for any | ||||||
20 | purpose other than the express purposes set forth in | ||||||
21 | this paragraph (10). | ||||||
22 | (C) The Department shall utilize up to | ||||||
23 | $280,500,000 in the Coal to Solar and Energy Storage | ||||||
24 | Initiative Fund for grants, assuming sufficient | ||||||
25 | qualifying applicants, to support installation of | ||||||
26 | energy storage facilities at the sites of up to 3 |
| |||||||
| |||||||
1 | qualifying electric generating facilities located in | ||||||
2 | the Midcontinent Independent System Operator, Inc., | ||||||
3 | region in Illinois and the sites of up to 2 qualifying | ||||||
4 | electric generating facilities located in the PJM | ||||||
5 | Interconnection, LLC region in Illinois that meet the | ||||||
6 | criteria set forth in this subparagraph (C). The | ||||||
7 | criteria for receipt of a grant pursuant to this | ||||||
8 | subparagraph (C) are as follows: | ||||||
9 | (1) the electric generating facility at the | ||||||
10 | site has, or had prior to retirement, an electric | ||||||
11 | generating capacity of at least 150 megawatts; | ||||||
12 | (2) the electric generating facility burns (or | ||||||
13 | burned prior to retirement) coal as its primary | ||||||
14 | source of fuel; | ||||||
15 | (3) if the electric generating facility is | ||||||
16 | retired, it was retired subsequent to January 1, | ||||||
17 | 2016; | ||||||
18 | (4) the owner of the electric generating | ||||||
19 | facility has not been selected by the Agency | ||||||
20 | pursuant to this subsection (c-5) of this Section | ||||||
21 | to enter into a contract to sell renewable energy | ||||||
22 | credits to one or more electric utilities from a | ||||||
23 | new renewable energy facility located or to be | ||||||
24 | located at or adjacent to the site at which the | ||||||
25 | electric generating facility is located; | ||||||
26 | (5) the electric generating facility located |
| |||||||
| |||||||
1 | at the site was at one time owned, in whole or in | ||||||
2 | part, by a public utility as defined in Section | ||||||
3 | 3-105 of the Public Utilities Act; | ||||||
4 | (6) the electric generating facility at the | ||||||
5 | site is not owned by (i) an electric cooperative | ||||||
6 | as defined in Section 3-119 of the Public | ||||||
7 | Utilities Act, or (ii) an entity described in | ||||||
8 | subsection (b)(1) of Section 3-105 of the Public | ||||||
9 | Utilities Act, or an association or consortium of | ||||||
10 | or an entity owned by entities described in items | ||||||
11 | (i) or (ii); | ||||||
12 | (7) the proposed energy storage facility at | ||||||
13 | the site will have energy storage capacity of at | ||||||
14 | least 37 megawatts; | ||||||
15 | (8) the owner commits to place the energy | ||||||
16 | storage facility into commercial operation on | ||||||
17 | either June 1, 2023, June 1, 2024, or June 1, 2025, | ||||||
18 | with such date subject to adjustment as needed due | ||||||
19 | to any delays in completing the grant contracting | ||||||
20 | process, in finalizing interconnection agreements | ||||||
21 | and in installing interconnection facilities, and | ||||||
22 | in obtaining necessary governmental permits and | ||||||
23 | approvals; | ||||||
24 | (9) the owner agrees that the new energy | ||||||
25 | storage facility will be constructed or installed | ||||||
26 | by a qualified entity or entities consistent with |
| |||||||
| |||||||
1 | the requirements of subsection (g) of Section | ||||||
2 | 16-128A of the Public Utilities Act and any rules | ||||||
3 | adopted under that Section; | ||||||
4 | (10) the owner agrees that personnel operating | ||||||
5 | the energy storage facility will have the | ||||||
6 | requisite skills, knowledge, training, experience, | ||||||
7 | and competence, which may be demonstrated by | ||||||
8 | completion or current participation and ultimate | ||||||
9 | completion by employees of an accredited or | ||||||
10 | otherwise recognized apprenticeship program for | ||||||
11 | the employee's particular craft, trade, or skill, | ||||||
12 | including through training and education courses | ||||||
13 | and opportunities offered by the owner to | ||||||
14 | employees of the coal-fueled electric generating | ||||||
15 | facility or by previous employment experience | ||||||
16 | performing the employee's particular work skill or | ||||||
17 | function; | ||||||
18 | (11) the owner commits that not less than the | ||||||
19 | prevailing wage, as determined pursuant to the | ||||||
20 | Prevailing Wage Act, will be paid to the owner's | ||||||
21 | employees engaged in construction activities | ||||||
22 | associated with the new energy storage facility | ||||||
23 | and to the employees of the owner's contractors | ||||||
24 | engaged in construction activities associated with | ||||||
25 | the new energy storage facility, and that, on or | ||||||
26 | before the commercial operation date of the new |
| |||||||
| |||||||
1 | energy storage facility, the owner shall file a | ||||||
2 | report with the Department certifying that the | ||||||
3 | requirements of this subparagraph (11) have been | ||||||
4 | met; and | ||||||
5 | (12) the owner commits that if selected to | ||||||
6 | receive a grant, it will negotiate a project labor | ||||||
7 | agreement for the construction of the new energy | ||||||
8 | storage facility that includes provisions | ||||||
9 | requiring the parties to the agreement to work | ||||||
10 | together to establish diversity threshold | ||||||
11 | requirements and to ensure best efforts to meet | ||||||
12 | diversity targets, improve diversity at the | ||||||
13 | applicable job site, create diverse apprenticeship | ||||||
14 | opportunities, and create opportunities to employ | ||||||
15 | former coal-fired power plant workers. | ||||||
16 | The Department shall accept applications for this | ||||||
17 | grant program until March 31, 2022 and shall announce | ||||||
18 | the award of grants no later than June 1, 2022. The | ||||||
19 | Department shall make the grant payments to a | ||||||
20 | recipient in equal annual amounts for 10 years | ||||||
21 | following the date the energy storage facility is | ||||||
22 | placed into commercial operation. The annual grant | ||||||
23 | payments to a qualifying energy storage facility shall | ||||||
24 | be $110,000 per megawatt of energy storage capacity, | ||||||
25 | with total annual grant payments pursuant to this | ||||||
26 | subparagraph (C) for qualifying energy storage |
| |||||||
| |||||||
1 | facilities not to exceed $28,050,000 in any year. | ||||||
2 | (D) Grants of funding for energy storage | ||||||
3 | facilities pursuant to subparagraph (C) of this | ||||||
4 | paragraph (10), from the Coal to Solar and Energy | ||||||
5 | Storage Initiative Fund, shall be memorialized in | ||||||
6 | grant contracts between the Department and the | ||||||
7 | recipient. The grant contracts shall specify the date | ||||||
8 | or dates in each year on which the annual grant | ||||||
9 | payments shall be paid. | ||||||
10 | (E) All disbursements from the Coal to Solar and | ||||||
11 | Energy Storage Initiative Fund shall be made only upon | ||||||
12 | warrants of the Comptroller drawn upon the Treasurer | ||||||
13 | as custodian of the Fund upon vouchers signed by the | ||||||
14 | Director of the Department or by the person or persons | ||||||
15 | designated by the Director of the Department for that | ||||||
16 | purpose. The Comptroller is authorized to draw the | ||||||
17 | warrants upon vouchers so signed. The Treasurer shall | ||||||
18 | accept all written warrants so signed and shall be | ||||||
19 | released from liability for all payments made on those | ||||||
20 | warrants. | ||||||
21 | (11) Diversity, equity, and inclusion plans. | ||||||
22 | (A) Each applicant selected in a procurement event | ||||||
23 | to contract to supply renewable energy credits in | ||||||
24 | accordance with this subsection (c-5) and each owner | ||||||
25 | selected by the Department to receive a grant or | ||||||
26 | grants to support the construction and operation of a |
| |||||||
| |||||||
1 | new energy storage facility or facilities in | ||||||
2 | accordance with this subsection (c-5) shall, within 60 | ||||||
3 | days following the Commission's approval of the | ||||||
4 | applicant to contract to supply renewable energy | ||||||
5 | credits or within 60 days following execution of a | ||||||
6 | grant contract with the Department, as applicable, | ||||||
7 | submit to the Commission a diversity, equity, and | ||||||
8 | inclusion plan setting forth the applicant's or | ||||||
9 | owner's numeric goals for the diversity composition of | ||||||
10 | its supplier entities for the new renewable energy | ||||||
11 | facility or new energy storage facility, as | ||||||
12 | applicable, which shall be referred to for purposes of | ||||||
13 | this paragraph (11) as the project, and the | ||||||
14 | applicant's or owner's action plan and schedule for | ||||||
15 | achieving those goals. | ||||||
16 | (B) For purposes of this paragraph (11), diversity | ||||||
17 | composition shall be based on the percentage, which | ||||||
18 | shall be a minimum of 25%, of eligible expenditures | ||||||
19 | for contract awards for materials and services (which | ||||||
20 | shall be defined in the plan) to business enterprises | ||||||
21 | owned by minority persons, women, or persons with | ||||||
22 | disabilities as defined in Section 2 of the Business | ||||||
23 | Enterprise for Minorities, Women, and Persons with | ||||||
24 | Disabilities Act, to LGBTQ business enterprises, to | ||||||
25 | veteran-owned business enterprises, and to business | ||||||
26 | enterprises located in environmental justice |
| |||||||
| |||||||
1 | communities. The diversity composition goals of the | ||||||
2 | plan may include eligible expenditures in areas for | ||||||
3 | vendor or supplier opportunities in addition to | ||||||
4 | development and construction of the project, and may | ||||||
5 | exclude from eligible expenditures materials and | ||||||
6 | services with limited market availability, limited | ||||||
7 | production and availability from suppliers in the | ||||||
8 | United States, such as solar panels and storage | ||||||
9 | batteries, and material and services that are subject | ||||||
10 | to critical energy infrastructure or cybersecurity | ||||||
11 | requirements or restrictions. The plan may provide | ||||||
12 | that the diversity composition goals may be met | ||||||
13 | through Tier 1 Direct or Tier 2 subcontracting | ||||||
14 | expenditures or a combination thereof for the project. | ||||||
15 | (C) The plan shall provide for, but not be limited | ||||||
16 | to: (i) internal initiatives, including multi-tier | ||||||
17 | initiatives, by the applicant or owner, or by its | ||||||
18 | engineering, procurement and construction contractor | ||||||
19 | if one is used for the project, which for purposes of | ||||||
20 | this paragraph (11) shall be referred to as the EPC | ||||||
21 | contractor, to enable diverse businesses to be | ||||||
22 | considered fairly for selection to provide materials | ||||||
23 | and services; (ii) requirements for the applicant or | ||||||
24 | owner or its EPC contractor to proactively solicit and | ||||||
25 | utilize diverse businesses to provide materials and | ||||||
26 | services; and (iii) requirements for the applicant or |
| |||||||
| |||||||
1 | owner or its EPC contractor to hire a diverse | ||||||
2 | workforce for the project. The plan shall include a | ||||||
3 | description of the applicant's or owner's diversity | ||||||
4 | recruiting efforts both for the project and for other | ||||||
5 | areas of the applicant's or owner's business | ||||||
6 | operations. The plan shall provide for the imposition | ||||||
7 | of financial penalties on the applicant's or owner's | ||||||
8 | EPC contractor for failure to exercise best efforts to | ||||||
9 | comply with and execute the EPC contractor's diversity | ||||||
10 | obligations under the plan. The plan may provide for | ||||||
11 | the applicant or owner to set aside a portion of the | ||||||
12 | work on the project to serve as an incubation program | ||||||
13 | for qualified businesses, as specified in the plan, | ||||||
14 | owned by minority persons, women, persons with | ||||||
15 | disabilities, LGBTQ persons, and veterans, and | ||||||
16 | businesses located in environmental justice | ||||||
17 | communities, seeking to enter the renewable energy | ||||||
18 | industry. | ||||||
19 | (D) The applicant or owner may submit a revised or | ||||||
20 | updated plan to the Commission from time to time as | ||||||
21 | circumstances warrant. The applicant or owner shall | ||||||
22 | file annual reports with the Commission detailing the | ||||||
23 | applicant's or owner's progress in implementing its | ||||||
24 | plan and achieving its goals and any modifications the | ||||||
25 | applicant or owner has made to its plan to better | ||||||
26 | achieve its diversity, equity and inclusion goals. The |
| |||||||
| |||||||
1 | applicant or owner shall file a final report on the | ||||||
2 | fifth June 1 following the commercial operation date | ||||||
3 | of the new renewable energy resource or new energy | ||||||
4 | storage facility, but the applicant or owner shall | ||||||
5 | thereafter continue to be subject to applicable | ||||||
6 | reporting requirements of Section 5-117 of the Public | ||||||
7 | Utilities Act. | ||||||
8 | (c-10) Equity accountability system. It is the purpose of | ||||||
9 | this subsection (c-10) to create an equity accountability | ||||||
10 | system, which includes the minimum equity standards for all | ||||||
11 | renewable energy procurements, the equity category of the | ||||||
12 | Adjustable Block Program, and the equity prioritization for | ||||||
13 | noncompetitive procurements, that is successful in advancing | ||||||
14 | priority access to the clean energy economy for businesses and | ||||||
15 | workers from communities that have been excluded from economic | ||||||
16 | opportunities in the energy sector, have been subject to | ||||||
17 | disproportionate levels of pollution, and have | ||||||
18 | disproportionately experienced negative public health | ||||||
19 | outcomes. Further, it is the purpose of this subsection to | ||||||
20 | ensure that this equity accountability system is successful in | ||||||
21 | advancing equity across Illinois by providing access to the | ||||||
22 | clean energy economy for businesses and workers from | ||||||
23 | communities that have been historically excluded from economic | ||||||
24 | opportunities in the energy sector, have been subject to | ||||||
25 | disproportionate levels of pollution, and have | ||||||
26 | disproportionately experienced negative public health |
| |||||||
| |||||||
1 | outcomes. | ||||||
2 | (1) Minimum equity standards. The Agency shall create | ||||||
3 | programs with the purpose of increasing access to and | ||||||
4 | development of equity eligible contractors, who are prime | ||||||
5 | contractors and subcontractors, across all of the programs | ||||||
6 | it manages. All applications for renewable energy credit | ||||||
7 | procurements shall comply with specific minimum equity | ||||||
8 | commitments. Starting in the delivery year immediately | ||||||
9 | following the next long-term renewable resources | ||||||
10 | procurement plan, at least 10% of the project workforce | ||||||
11 | for each entity participating in a procurement program | ||||||
12 | outlined in this subsection (c-10) must be done by equity | ||||||
13 | eligible persons or equity eligible contractors. The | ||||||
14 | Agency shall increase the minimum percentage each delivery | ||||||
15 | year thereafter by increments that ensure a statewide | ||||||
16 | average of 30% of the project workforce for each entity | ||||||
17 | participating in a procurement program is done by equity | ||||||
18 | eligible persons or equity eligible contractors by 2030. | ||||||
19 | The Agency shall propose a schedule of percentage | ||||||
20 | increases to the minimum equity standards in its draft | ||||||
21 | revised renewable energy resources procurement plan | ||||||
22 | submitted to the Commission for approval pursuant to | ||||||
23 | paragraph (5) of subsection (b) of Section 16-111.5 of the | ||||||
24 | Public Utilities Act. In determining these annual | ||||||
25 | increases, the Agency shall have the discretion to | ||||||
26 | establish different minimum equity standards for different |
| |||||||
| |||||||
1 | types of procurements and different regions of the State | ||||||
2 | if the Agency finds that doing so will further the | ||||||
3 | purposes of this subsection (c-10). The proposed schedule | ||||||
4 | of annual increases shall be revisited and updated on an | ||||||
5 | annual basis. Revisions shall be developed with | ||||||
6 | stakeholder input, including from equity eligible persons, | ||||||
7 | equity eligible contractors, clean energy industry | ||||||
8 | representatives, and community-based organizations that | ||||||
9 | work with such persons and contractors. | ||||||
10 | (A) At the start of each delivery year, the Agency | ||||||
11 | shall require a compliance plan from each entity | ||||||
12 | participating in a procurement program of subsection | ||||||
13 | (c) of this Section that demonstrates how they will | ||||||
14 | achieve compliance with the minimum equity standard | ||||||
15 | percentage for work completed in that delivery year. | ||||||
16 | If an entity applies for its approved vendor or | ||||||
17 | designee status between delivery years, the Agency | ||||||
18 | shall require a compliance plan at the time of | ||||||
19 | application. | ||||||
20 | (B) Halfway through each delivery year, the Agency | ||||||
21 | shall require each entity participating in a | ||||||
22 | procurement program to confirm that it will achieve | ||||||
23 | compliance in that delivery year, when applicable. The | ||||||
24 | Agency may offer corrective action plans to entities | ||||||
25 | that are not on track to achieve compliance. | ||||||
26 | (C) At the end of each delivery year, each entity |
| |||||||
| |||||||
1 | participating and completing work in that delivery | ||||||
2 | year in a procurement program of subsection (c) shall | ||||||
3 | submit a report to the Agency that demonstrates how it | ||||||
4 | achieved compliance with the minimum equity standards | ||||||
5 | percentage for that delivery year. | ||||||
6 | (D) The Agency shall prohibit participation in | ||||||
7 | procurement programs by an approved vendor or | ||||||
8 | designee, as applicable, or entities with which an | ||||||
9 | approved vendor or designee, as applicable, shares a | ||||||
10 | common parent company if an approved vendor or | ||||||
11 | designee, as applicable, failed to meet the minimum | ||||||
12 | equity standards for the prior delivery year. Waivers | ||||||
13 | approved for lack of equity eligible persons or equity | ||||||
14 | eligible contractors in a geographic area of a project | ||||||
15 | shall not count against the approved vendor or | ||||||
16 | designee. The Agency shall offer a corrective action | ||||||
17 | plan for any such entities to assist them in obtaining | ||||||
18 | compliance and shall allow continued access to | ||||||
19 | procurement programs upon an approved vendor or | ||||||
20 | designee demonstrating compliance. | ||||||
21 | (E) The Agency shall pursue efficiencies achieved | ||||||
22 | by combining with other approved vendor or designee | ||||||
23 | reporting. | ||||||
24 | (2) Equity accountability system within the Adjustable | ||||||
25 | Block program. The equity category described in item (vi) | ||||||
26 | of subparagraph (K) of subsection (c) is only available to |
| |||||||
| |||||||
1 | applicants that are equity eligible contractors. | ||||||
2 | (3) Equity accountability system within competitive | ||||||
3 | procurements. Through its long-term renewable resources | ||||||
4 | procurement plan, the Agency shall develop requirements | ||||||
5 | for ensuring that competitive procurement processes, | ||||||
6 | including utility-scale solar, utility-scale wind, and | ||||||
7 | brownfield site photovoltaic projects, advance the equity | ||||||
8 | goals of this subsection (c-10). Subject to Commission | ||||||
9 | approval, the Agency shall develop bid application | ||||||
10 | requirements and a bid evaluation methodology for ensuring | ||||||
11 | that utilization of equity eligible contractors, whether | ||||||
12 | as bidders or as participants on project development, is | ||||||
13 | optimized, including requiring that winning or successful | ||||||
14 | applicants for utility-scale projects are or will partner | ||||||
15 | with equity eligible contractors and giving preference to | ||||||
16 | bids through which a higher portion of contract value | ||||||
17 | flows to equity eligible contractors. To the extent | ||||||
18 | practicable, entities participating in competitive | ||||||
19 | procurements shall also be required to meet all the equity | ||||||
20 | accountability requirements for approved vendors and their | ||||||
21 | designees under this subsection (c-10). In developing | ||||||
22 | these requirements, the Agency shall also consider whether | ||||||
23 | equity goals can be further advanced through additional | ||||||
24 | measures. | ||||||
25 | (4) In the first revision to the long-term renewable | ||||||
26 | energy resources procurement plan and each revision |
| |||||||
| |||||||
1 | thereafter, the Agency shall include the following: | ||||||
2 | (A) The current status and number of equity | ||||||
3 | eligible contractors listed in the Energy Workforce | ||||||
4 | Equity Database designed in subsection (c-25), | ||||||
5 | including the number of equity eligible contractors | ||||||
6 | with current certifications as issued by the Agency. | ||||||
7 | (B) A mechanism for measuring, tracking, and | ||||||
8 | reporting project workforce at the approved vendor or | ||||||
9 | designee level, as applicable, which shall include a | ||||||
10 | measurement methodology and records to be made | ||||||
11 | available for audit by the Agency or the Program | ||||||
12 | Administrator. | ||||||
13 | (C) A program for approved vendors, designees, | ||||||
14 | eligible persons, and equity eligible contractors to | ||||||
15 | receive trainings, guidance, and other support from | ||||||
16 | the Agency or its designee regarding the equity | ||||||
17 | category outlined in item (vi) of subparagraph (K) of | ||||||
18 | paragraph (1) of subsection (c) and in meeting the | ||||||
19 | minimum equity standards of this subsection (c-10). | ||||||
20 | (D) A process for certifying equity eligible | ||||||
21 | contractors and equity eligible persons. The | ||||||
22 | certification process shall coordinate with the Energy | ||||||
23 | Workforce Equity Database set forth in subsection | ||||||
24 | (c-25). | ||||||
25 | (E) An application for waiver of the minimum | ||||||
26 | equity standards of this subsection, which the Agency |
| |||||||
| |||||||
1 | shall have the discretion to grant in rare | ||||||
2 | circumstances. The Agency may grant such a waiver | ||||||
3 | where the applicant provides evidence of significant | ||||||
4 | efforts toward meeting the minimum equity commitment, | ||||||
5 | including: use of the Energy Workforce Equity | ||||||
6 | Database; efforts to hire or contract with entities | ||||||
7 | that hire eligible persons; and efforts to establish | ||||||
8 | contracting relationships with eligible contractors. | ||||||
9 | The Agency shall support applicants in understanding | ||||||
10 | the Energy Workforce Equity Database and other | ||||||
11 | resources for pursuing compliance of the minimum | ||||||
12 | equity standards. Waivers shall be project-specific, | ||||||
13 | unless the Agency deems it necessary to grant a waiver | ||||||
14 | across a portfolio of projects, and in effect for no | ||||||
15 | longer than one year. Any waiver extension or | ||||||
16 | subsequent waiver request from an applicant shall be | ||||||
17 | subject to the requirements of this Section and shall | ||||||
18 | specify efforts made to reach compliance. When | ||||||
19 | considering whether to grant a waiver, and to what | ||||||
20 | extent, the Agency shall consider the degree to which | ||||||
21 | similarly situated applicants have been able to meet | ||||||
22 | these minimum equity commitments. For repeated waiver | ||||||
23 | requests for specific lack of eligible persons or | ||||||
24 | eligible contractors available, the Agency shall make | ||||||
25 | recommendations to target recruitment to add such | ||||||
26 | eligible persons or eligible contractors to the |
| |||||||
| |||||||
1 | database. | ||||||
2 | (5) The Agency shall collect information about work on | ||||||
3 | projects or portfolios of projects subject to these | ||||||
4 | minimum equity standards to ensure compliance with this | ||||||
5 | subsection (c-10). Reporting in furtherance of this | ||||||
6 | requirement may be combined with other annual reporting | ||||||
7 | requirements. Such reporting shall include proof of | ||||||
8 | certification of each equity eligible contractor or equity | ||||||
9 | eligible person during the applicable time period. | ||||||
10 | (6) The Agency shall keep confidential all information | ||||||
11 | and communication that provides private or personal | ||||||
12 | information. | ||||||
13 | (7) Modifications to the equity accountability system. | ||||||
14 | As part of the update of the long-term renewable resources | ||||||
15 | procurement plan to be initiated in 2023, or sooner if the | ||||||
16 | Agency deems necessary, the Agency shall determine the | ||||||
17 | extent to which the equity accountability system described | ||||||
18 | in this subsection (c-10) has advanced the goals of this | ||||||
19 | amendatory Act of the 102nd General Assembly, including | ||||||
20 | through the inclusion of equity eligible persons and | ||||||
21 | equity eligible contractors in renewable energy credit | ||||||
22 | projects. If the Agency finds that the equity | ||||||
23 | accountability system has failed to meet those goals to | ||||||
24 | its fullest potential, the Agency may revise the following | ||||||
25 | criteria for future Agency procurements: (A) the | ||||||
26 | percentage of project workforce, or other appropriate |
| |||||||
| |||||||
1 | workforce measure, certified as equity eligible persons or | ||||||
2 | equity eligible contractors; (B) definitions for equity | ||||||
3 | investment eligible persons and equity investment eligible | ||||||
4 | community; and (C) such other modifications necessary to | ||||||
5 | advance the goals of this amendatory Act of the 102nd | ||||||
6 | General Assembly effectively. Such revised criteria may | ||||||
7 | also establish distinct equity accountability systems for | ||||||
8 | different types of procurements or different regions of | ||||||
9 | the State if the Agency finds that doing so will further | ||||||
10 | the purposes of such programs. Revisions shall be | ||||||
11 | developed with stakeholder input, including from equity | ||||||
12 | eligible persons, equity eligible contractors, and | ||||||
13 | community-based organizations that work with such persons | ||||||
14 | and contractors. | ||||||
15 | (c-15) Racial discrimination elimination powers and | ||||||
16 | process. | ||||||
17 | (1) Purpose. It is the purpose of this subsection to | ||||||
18 | empower the Agency and other State actors to remedy racial | ||||||
19 | discrimination in Illinois' clean energy economy as | ||||||
20 | effectively and expediently as possible, including through | ||||||
21 | the use of race-conscious remedies, such as race-conscious | ||||||
22 | contracting and hiring goals, as consistent with State and | ||||||
23 | federal law. | ||||||
24 | (2) Racial disparity and discrimination review | ||||||
25 | process. | ||||||
26 | (A) Within one year after awarding contracts using |
| |||||||
| |||||||
1 | the equity actions processes established in this | ||||||
2 | Section, the Agency shall publish a report evaluating | ||||||
3 | the effectiveness of the equity actions point criteria | ||||||
4 | of this Section in increasing participation of equity | ||||||
5 | eligible persons and equity eligible contractors. The | ||||||
6 | report shall disaggregate participating workers and | ||||||
7 | contractors by race and ethnicity. The report shall be | ||||||
8 | forwarded to the Governor, the General Assembly, and | ||||||
9 | the Illinois Commerce Commission and be made available | ||||||
10 | to the public. | ||||||
11 | (B) As soon as is practicable thereafter, the | ||||||
12 | Agency, in consultation with the Department of | ||||||
13 | Commerce and Economic Opportunity, Department of | ||||||
14 | Labor, and other agencies that may be relevant, shall | ||||||
15 | commission and publish a disparity and availability | ||||||
16 | study that measures the presence and impact of | ||||||
17 | discrimination on minority businesses and workers in | ||||||
18 | Illinois' clean energy economy. The Agency may hire | ||||||
19 | consultants and experts to conduct the disparity and | ||||||
20 | availability study, with the retention of those | ||||||
21 | consultants and experts exempt from the requirements | ||||||
22 | of Section 20-10 of the Illinois Procurement Code. The | ||||||
23 | Illinois Power Agency shall forward a copy of its | ||||||
24 | findings and recommendations to the Governor, the | ||||||
25 | General Assembly, and the Illinois Commerce | ||||||
26 | Commission. If the disparity and availability study |
| |||||||
| |||||||
1 | establishes a strong basis in evidence that there is | ||||||
2 | discrimination in Illinois' clean energy economy, the | ||||||
3 | Agency, Department of Commerce and Economic | ||||||
4 | Opportunity, Department of Labor, Department of | ||||||
5 | Corrections, and other appropriate agencies shall take | ||||||
6 | appropriate remedial actions, including race-conscious | ||||||
7 | remedial actions as consistent with State and federal | ||||||
8 | law, to effectively remedy this discrimination. Such | ||||||
9 | remedies may include modification of the equity | ||||||
10 | accountability system as described in subsection | ||||||
11 | (c-10). | ||||||
12 | (c-20) Program data collection. | ||||||
13 | (1) Purpose. Data collection, data analysis, and | ||||||
14 | reporting are critical to ensure that the benefits of the | ||||||
15 | clean energy economy provided to Illinois residents and | ||||||
16 | businesses are equitably distributed across the State. The | ||||||
17 | Agency shall collect data from program applicants in order | ||||||
18 | to track and improve equitable distribution of benefits | ||||||
19 | across Illinois communities for all procurements the | ||||||
20 | Agency conducts. The Agency shall use this data to, among | ||||||
21 | other things, measure any potential impact of racial | ||||||
22 | discrimination on the distribution of benefits and provide | ||||||
23 | information necessary to correct any discrimination | ||||||
24 | through methods consistent with State and federal law. | ||||||
25 | (2) Agency collection of program data. The Agency | ||||||
26 | shall collect demographic and geographic data for each |
| |||||||
| |||||||
1 | entity awarded contracts under any Agency-administered | ||||||
2 | program. The Agency shall collect this data on an annual | ||||||
3 | basis for all systems energized during the applicable | ||||||
4 | annual period, but shall allow entities awarded contracts | ||||||
5 | under any Agency-administered program to elect to report | ||||||
6 | data exclusively on a project-by-project basis. | ||||||
7 | (3) Required information to be collected. The Agency | ||||||
8 | shall collect the following information from applicants | ||||||
9 | and program participants where applicable: | ||||||
10 | (A) demographic information, including racial or | ||||||
11 | ethnic identity for real persons employed, contracted, | ||||||
12 | or subcontracted through the program and owners of | ||||||
13 | businesses or entities that apply to receive renewable | ||||||
14 | energy credits from the Agency; | ||||||
15 | (B) geographic location of the residency of real | ||||||
16 | persons employed, contracted, or subcontracted through | ||||||
17 | the program and geographic location of the | ||||||
18 | headquarters of the business or entity that applies to | ||||||
19 | receive renewable energy credits from the Agency; and | ||||||
20 | (C) any other information the Agency determines is | ||||||
21 | necessary for the purpose of achieving the purpose of | ||||||
22 | this subsection. | ||||||
23 | (4) Publication of collected information. The Agency | ||||||
24 | shall publish, at least annually, information on the | ||||||
25 | demographics of program participants on an aggregate | ||||||
26 | basis. |
| |||||||
| |||||||
1 | (5) Nothing in this subsection shall be interpreted to | ||||||
2 | limit the authority of the Agency, or other agency or | ||||||
3 | department of the State, to require or collect demographic | ||||||
4 | information from applicants of other State programs. | ||||||
5 | (c-25) Energy Workforce Equity Database. | ||||||
6 | (1) The Agency, in consultation with the Department of | ||||||
7 | Commerce and Economic Opportunity, shall create an Energy | ||||||
8 | Workforce Equity Database, and may contract with a third | ||||||
9 | party to do so ("database program administrator"). If the | ||||||
10 | Department decides to contract with a third party, that | ||||||
11 | third party shall be exempt from the requirements of | ||||||
12 | Section 20-10 of the Illinois Procurement Code. The Energy | ||||||
13 | Workforce Equity Database shall be a searchable database | ||||||
14 | of suppliers, vendors, and subcontractors for clean energy | ||||||
15 | industries that is: | ||||||
16 | (A) publicly accessible; | ||||||
17 | (B) easy for people to find and use; | ||||||
18 | (C) organized by company specialty or field; | ||||||
19 | (D) region-specific; and | ||||||
20 | (E) populated with information including, but not | ||||||
21 | limited to, contacts for suppliers, vendors, or | ||||||
22 | subcontractors who are minority and women-owned | ||||||
23 | business enterprise certified or who participate or | ||||||
24 | have participated in any of the programs described in | ||||||
25 | this Act. | ||||||
26 | (2) The Agency shall create an easily accessible, |
| |||||||
| |||||||
1 | public facing online tool using the database information | ||||||
2 | that includes, at a minimum, the following: | ||||||
3 | (A) a map of environmental justice and equity | ||||||
4 | investment eligible communities; | ||||||
5 | (B) job postings and recruiting opportunities; | ||||||
6 | (C) a means by which recruiting clean energy | ||||||
7 | companies can find and interact with current or former | ||||||
8 | participants of clean energy workforce training | ||||||
9 | programs; | ||||||
10 | (D) information on workforce training service | ||||||
11 | providers and training opportunities available to | ||||||
12 | prospective workers; | ||||||
13 | (E) renewable energy company diversity reporting; | ||||||
14 | (F) a list of equity eligible contractors with | ||||||
15 | their contact information, types of work performed, | ||||||
16 | and locations worked in; | ||||||
17 | (G) reporting on outcomes of the programs | ||||||
18 | described in the workforce programs of the Energy | ||||||
19 | Transition Act, including information such as, but not | ||||||
20 | limited to, retention rate, graduation rate, and | ||||||
21 | placement rates of trainees; and | ||||||
22 | (H) information about the Jobs and Environmental | ||||||
23 | Justice Grant Program, the Clean Energy Jobs and | ||||||
24 | Justice Fund, and other sources of capital. | ||||||
25 | (3) The Agency shall ensure the database is regularly | ||||||
26 | updated to ensure information is current and shall |
| |||||||
| |||||||
1 | coordinate with the Department of Commerce and Economic | ||||||
2 | Opportunity to ensure that it includes information on | ||||||
3 | individuals and entities that are or have participated in | ||||||
4 | the Clean Jobs Workforce Network Program, Clean Energy | ||||||
5 | Contractor Incubator Program, Returning Residents Clean | ||||||
6 | Jobs Training Program, or Clean Energy Primes Contractor | ||||||
7 | Accelerator Program. | ||||||
8 | (c-30) Enforcement of minimum equity standards. All | ||||||
9 | entities seeking renewable energy credits must submit an | ||||||
10 | annual report to demonstrate compliance with each of the | ||||||
11 | equity commitments required under subsection (c-10). If the | ||||||
12 | Agency concludes the entity has not met or maintained its | ||||||
13 | minimum equity standards required under the applicable | ||||||
14 | subparagraphs under subsection (c-10), the Agency shall deny | ||||||
15 | the entity's ability to participate in procurement programs in | ||||||
16 | subsection (c), including by withholding approved vendor or | ||||||
17 | designee status. The Agency may require the entity to enter | ||||||
18 | into a corrective action plan. An entity that is not | ||||||
19 | recertified for failing to meet required equity actions in | ||||||
20 | subparagraph (c-10) may reapply once they have a corrective | ||||||
21 | action plan and achieve compliance with the minimum equity | ||||||
22 | standards. | ||||||
23 | (d) Clean coal portfolio standard. | ||||||
24 | (1) The procurement plans shall include electricity | ||||||
25 | generated using clean coal. Each utility shall enter into | ||||||
26 | one or more sourcing agreements with the initial clean |
| |||||||
| |||||||
1 | coal facility, as provided in paragraph (3) of this | ||||||
2 | subsection (d), covering electricity generated by the | ||||||
3 | initial clean coal facility representing at least 5% of | ||||||
4 | each utility's total supply to serve the load of eligible | ||||||
5 | retail customers in 2015 and each year thereafter, as | ||||||
6 | described in paragraph (3) of this subsection (d), subject | ||||||
7 | to the limits specified in paragraph (2) of this | ||||||
8 | subsection (d). It is the goal of the State that by January | ||||||
9 | 1, 2025, 25% of the electricity used in the State shall be | ||||||
10 | generated by cost-effective clean coal facilities. For | ||||||
11 | purposes of this subsection (d), "cost-effective" means | ||||||
12 | that the expenditures pursuant to such sourcing agreements | ||||||
13 | do not cause the limit stated in paragraph (2) of this | ||||||
14 | subsection (d) to be exceeded and do not exceed cost-based | ||||||
15 | benchmarks, which shall be developed to assess all | ||||||
16 | expenditures pursuant to such sourcing agreements covering | ||||||
17 | electricity generated by clean coal facilities, other than | ||||||
18 | the initial clean coal facility, by the procurement | ||||||
19 | administrator, in consultation with the Commission staff, | ||||||
20 | Agency staff, and the procurement monitor and shall be | ||||||
21 | subject to Commission review and approval. | ||||||
22 | A utility party to a sourcing agreement shall | ||||||
23 | immediately retire any emission credits that it receives | ||||||
24 | in connection with the electricity covered by such | ||||||
25 | agreement. | ||||||
26 | Utilities shall maintain adequate records documenting |
| |||||||
| |||||||
1 | the purchases under the sourcing agreement to comply with | ||||||
2 | this subsection (d) and shall file an accounting with the | ||||||
3 | load forecast that must be filed with the Agency by July 15 | ||||||
4 | of each year, in accordance with subsection (d) of Section | ||||||
5 | 16-111.5 of the Public Utilities Act. | ||||||
6 | A utility shall be deemed to have complied with the | ||||||
7 | clean coal portfolio standard specified in this subsection | ||||||
8 | (d) if the utility enters into a sourcing agreement as | ||||||
9 | required by this subsection (d). | ||||||
10 | (2) For purposes of this subsection (d), the required | ||||||
11 | execution of sourcing agreements with the initial clean | ||||||
12 | coal facility for a particular year shall be measured as a | ||||||
13 | percentage of the actual amount of electricity | ||||||
14 | (megawatt-hours) supplied by the electric utility to | ||||||
15 | eligible retail customers in the planning year ending | ||||||
16 | immediately prior to the agreement's execution. For | ||||||
17 | purposes of this subsection (d), the amount paid per | ||||||
18 | kilowatthour means the total amount paid for electric | ||||||
19 | service expressed on a per kilowatthour basis. For | ||||||
20 | purposes of this subsection (d), the total amount paid for | ||||||
21 | electric service includes without limitation amounts paid | ||||||
22 | for supply, transmission, distribution, surcharges and | ||||||
23 | add-on taxes. | ||||||
24 | Notwithstanding the requirements of this subsection | ||||||
25 | (d), the total amount paid under sourcing agreements with | ||||||
26 | clean coal facilities pursuant to the procurement plan for |
| |||||||
| |||||||
1 | any given year shall be reduced by an amount necessary to | ||||||
2 | limit the annual estimated average net increase due to the | ||||||
3 | costs of these resources included in the amounts paid by | ||||||
4 | eligible retail customers in connection with electric | ||||||
5 | service to: | ||||||
6 | (A) in 2010, no more than 0.5% of the amount paid | ||||||
7 | per kilowatthour by those customers during the year | ||||||
8 | ending May 31, 2009; | ||||||
9 | (B) in 2011, the greater of an additional 0.5% of | ||||||
10 | the amount paid per kilowatthour by those customers | ||||||
11 | during the year ending May 31, 2010 or 1% of the amount | ||||||
12 | paid per kilowatthour by those customers during the | ||||||
13 | year ending May 31, 2009; | ||||||
14 | (C) in 2012, the greater of an additional 0.5% of | ||||||
15 | the amount paid per kilowatthour by those customers | ||||||
16 | during the year ending May 31, 2011 or 1.5% of the | ||||||
17 | amount paid per kilowatthour by those customers during | ||||||
18 | the year ending May 31, 2009; | ||||||
19 | (D) in 2013, the greater of an additional 0.5% of | ||||||
20 | the amount paid per kilowatthour by those customers | ||||||
21 | during the year ending May 31, 2012 or 2% of the amount | ||||||
22 | paid per kilowatthour by those customers during the | ||||||
23 | year ending May 31, 2009; and | ||||||
24 | (E) thereafter, the total amount paid under | ||||||
25 | sourcing agreements with clean coal facilities | ||||||
26 | pursuant to the procurement plan for any single year |
| |||||||
| |||||||
1 | shall be reduced by an amount necessary to limit the | ||||||
2 | estimated average net increase due to the cost of | ||||||
3 | these resources included in the amounts paid by | ||||||
4 | eligible retail customers in connection with electric | ||||||
5 | service to no more than the greater of (i) 2.015% of | ||||||
6 | the amount paid per kilowatthour by those customers | ||||||
7 | during the year ending May 31, 2009 or (ii) the | ||||||
8 | incremental amount per kilowatthour paid for these | ||||||
9 | resources in 2013. These requirements may be altered | ||||||
10 | only as provided by statute. | ||||||
11 | No later than June 30, 2015, the Commission shall | ||||||
12 | review the limitation on the total amount paid under | ||||||
13 | sourcing agreements, if any, with clean coal facilities | ||||||
14 | pursuant to this subsection (d) and report to the General | ||||||
15 | Assembly its findings as to whether that limitation unduly | ||||||
16 | constrains the amount of electricity generated by | ||||||
17 | cost-effective clean coal facilities that is covered by | ||||||
18 | sourcing agreements. | ||||||
19 | (3) Initial clean coal facility. In order to promote | ||||||
20 | development of clean coal facilities in Illinois, each | ||||||
21 | electric utility subject to this Section shall execute a | ||||||
22 | sourcing agreement to source electricity from a proposed | ||||||
23 | clean coal facility in Illinois (the "initial clean coal | ||||||
24 | facility") that will have a nameplate capacity of at least | ||||||
25 | 500 MW when commercial operation commences, that has a | ||||||
26 | final Clean Air Act permit on June 1, 2009 (the effective |
| |||||||
| |||||||
1 | date of Public Act 95-1027), and that will meet the | ||||||
2 | definition of clean coal facility in Section 1-10 of this | ||||||
3 | Act when commercial operation commences. The sourcing | ||||||
4 | agreements with this initial clean coal facility shall be | ||||||
5 | subject to both approval of the initial clean coal | ||||||
6 | facility by the General Assembly and satisfaction of the | ||||||
7 | requirements of paragraph (4) of this subsection (d) and | ||||||
8 | shall be executed within 90 days after any such approval | ||||||
9 | by the General Assembly. The Agency and the Commission | ||||||
10 | shall have authority to inspect all books and records | ||||||
11 | associated with the initial clean coal facility during the | ||||||
12 | term of such a sourcing agreement. A utility's sourcing | ||||||
13 | agreement for electricity produced by the initial clean | ||||||
14 | coal facility shall include: | ||||||
15 | (A) a formula contractual price (the "contract | ||||||
16 | price") approved pursuant to paragraph (4) of this | ||||||
17 | subsection (d), which shall: | ||||||
18 | (i) be determined using a cost of service | ||||||
19 | methodology employing either a level or deferred | ||||||
20 | capital recovery component, based on a capital | ||||||
21 | structure consisting of 45% equity and 55% debt, | ||||||
22 | and a return on equity as may be approved by the | ||||||
23 | Federal Energy Regulatory Commission, which in any | ||||||
24 | case may not exceed the lower of 11.5% or the rate | ||||||
25 | of return approved by the General Assembly | ||||||
26 | pursuant to paragraph (4) of this subsection (d); |
| |||||||
| |||||||
1 | and | ||||||
2 | (ii) provide that all miscellaneous net | ||||||
3 | revenue, including but not limited to net revenue | ||||||
4 | from the sale of emission allowances, if any, | ||||||
5 | substitute natural gas, if any, grants or other | ||||||
6 | support provided by the State of Illinois or the | ||||||
7 | United States Government, firm transmission | ||||||
8 | rights, if any, by-products produced by the | ||||||
9 | facility, energy or capacity derived from the | ||||||
10 | facility and not covered by a sourcing agreement | ||||||
11 | pursuant to paragraph (3) of this subsection (d) | ||||||
12 | or item (5) of subsection (d) of Section 16-115 of | ||||||
13 | the Public Utilities Act, whether generated from | ||||||
14 | the synthesis gas derived from coal, from SNG, or | ||||||
15 | from natural gas, shall be credited against the | ||||||
16 | revenue requirement for this initial clean coal | ||||||
17 | facility; | ||||||
18 | (B) power purchase provisions, which shall: | ||||||
19 | (i) provide that the utility party to such | ||||||
20 | sourcing agreement shall pay the contract price | ||||||
21 | for electricity delivered under such sourcing | ||||||
22 | agreement; | ||||||
23 | (ii) require delivery of electricity to the | ||||||
24 | regional transmission organization market of the | ||||||
25 | utility that is party to such sourcing agreement; | ||||||
26 | (iii) require the utility party to such |
| |||||||
| |||||||
1 | sourcing agreement to buy from the initial clean | ||||||
2 | coal facility in each hour an amount of energy | ||||||
3 | equal to all clean coal energy made available from | ||||||
4 | the initial clean coal facility during such hour | ||||||
5 | times a fraction, the numerator of which is such | ||||||
6 | utility's retail market sales of electricity | ||||||
7 | (expressed in kilowatthours sold) in the State | ||||||
8 | during the prior calendar month and the | ||||||
9 | denominator of which is the total retail market | ||||||
10 | sales of electricity (expressed in kilowatthours | ||||||
11 | sold) in the State by utilities during such prior | ||||||
12 | month and the sales of electricity (expressed in | ||||||
13 | kilowatthours sold) in the State by alternative | ||||||
14 | retail electric suppliers during such prior month | ||||||
15 | that are subject to the requirements of this | ||||||
16 | subsection (d) and paragraph (5) of subsection (d) | ||||||
17 | of Section 16-115 of the Public Utilities Act, | ||||||
18 | provided that the amount purchased by the utility | ||||||
19 | in any year will be limited by paragraph (2) of | ||||||
20 | this subsection (d); and | ||||||
21 | (iv) be considered pre-existing contracts in | ||||||
22 | such utility's procurement plans for eligible | ||||||
23 | retail customers; | ||||||
24 | (C) contract for differences provisions, which | ||||||
25 | shall: | ||||||
26 | (i) require the utility party to such sourcing |
| |||||||
| |||||||
1 | agreement to contract with the initial clean coal | ||||||
2 | facility in each hour with respect to an amount of | ||||||
3 | energy equal to all clean coal energy made | ||||||
4 | available from the initial clean coal facility | ||||||
5 | during such hour times a fraction, the numerator | ||||||
6 | of which is such utility's retail market sales of | ||||||
7 | electricity (expressed in kilowatthours sold) in | ||||||
8 | the utility's service territory in the State | ||||||
9 | during the prior calendar month and the | ||||||
10 | denominator of which is the total retail market | ||||||
11 | sales of electricity (expressed in kilowatthours | ||||||
12 | sold) in the State by utilities during such prior | ||||||
13 | month and the sales of electricity (expressed in | ||||||
14 | kilowatthours sold) in the State by alternative | ||||||
15 | retail electric suppliers during such prior month | ||||||
16 | that are subject to the requirements of this | ||||||
17 | subsection (d) and paragraph (5) of subsection (d) | ||||||
18 | of Section 16-115 of the Public Utilities Act, | ||||||
19 | provided that the amount paid by the utility in | ||||||
20 | any year will be limited by paragraph (2) of this | ||||||
21 | subsection (d); | ||||||
22 | (ii) provide that the utility's payment | ||||||
23 | obligation in respect of the quantity of | ||||||
24 | electricity determined pursuant to the preceding | ||||||
25 | clause (i) shall be limited to an amount equal to | ||||||
26 | (1) the difference between the contract price |
| |||||||
| |||||||
1 | determined pursuant to subparagraph (A) of | ||||||
2 | paragraph (3) of this subsection (d) and the | ||||||
3 | day-ahead price for electricity delivered to the | ||||||
4 | regional transmission organization market of the | ||||||
5 | utility that is party to such sourcing agreement | ||||||
6 | (or any successor delivery point at which such | ||||||
7 | utility's supply obligations are financially | ||||||
8 | settled on an hourly basis) (the "reference | ||||||
9 | price") on the day preceding the day on which the | ||||||
10 | electricity is delivered to the initial clean coal | ||||||
11 | facility busbar, multiplied by (2) the quantity of | ||||||
12 | electricity determined pursuant to the preceding | ||||||
13 | clause (i); and | ||||||
14 | (iii) not require the utility to take physical | ||||||
15 | delivery of the electricity produced by the | ||||||
16 | facility; | ||||||
17 | (D) general provisions, which shall: | ||||||
18 | (i) specify a term of no more than 30 years, | ||||||
19 | commencing on the commercial operation date of the | ||||||
20 | facility; | ||||||
21 | (ii) provide that utilities shall maintain | ||||||
22 | adequate records documenting purchases under the | ||||||
23 | sourcing agreements entered into to comply with | ||||||
24 | this subsection (d) and shall file an accounting | ||||||
25 | with the load forecast that must be filed with the | ||||||
26 | Agency by July 15 of each year, in accordance with |
| |||||||
| |||||||
1 | subsection (d) of Section 16-111.5 of the Public | ||||||
2 | Utilities Act; | ||||||
3 | (iii) provide that all costs associated with | ||||||
4 | the initial clean coal facility will be | ||||||
5 | periodically reported to the Federal Energy | ||||||
6 | Regulatory Commission and to purchasers in | ||||||
7 | accordance with applicable laws governing | ||||||
8 | cost-based wholesale power contracts; | ||||||
9 | (iv) permit the Illinois Power Agency to | ||||||
10 | assume ownership of the initial clean coal | ||||||
11 | facility, without monetary consideration and | ||||||
12 | otherwise on reasonable terms acceptable to the | ||||||
13 | Agency, if the Agency so requests no less than 3 | ||||||
14 | years prior to the end of the stated contract | ||||||
15 | term; | ||||||
16 | (v) require the owner of the initial clean | ||||||
17 | coal facility to provide documentation to the | ||||||
18 | Commission each year, starting in the facility's | ||||||
19 | first year of commercial operation, accurately | ||||||
20 | reporting the quantity of carbon emissions from | ||||||
21 | the facility that have been captured and | ||||||
22 | sequestered and report any quantities of carbon | ||||||
23 | released from the site or sites at which carbon | ||||||
24 | emissions were sequestered in prior years, based | ||||||
25 | on continuous monitoring of such sites. If, in any | ||||||
26 | year after the first year of commercial operation, |
| |||||||
| |||||||
1 | the owner of the facility fails to demonstrate | ||||||
2 | that the initial clean coal facility captured and | ||||||
3 | sequestered at least 50% of the total carbon | ||||||
4 | emissions that the facility would otherwise emit | ||||||
5 | or that sequestration of emissions from prior | ||||||
6 | years has failed, resulting in the release of | ||||||
7 | carbon dioxide into the atmosphere, the owner of | ||||||
8 | the facility must offset excess emissions. Any | ||||||
9 | such carbon offsets must be permanent, additional, | ||||||
10 | verifiable, real, located within the State of | ||||||
11 | Illinois, and legally and practicably enforceable. | ||||||
12 | The cost of such offsets for the facility that are | ||||||
13 | not recoverable shall not exceed $15 million in | ||||||
14 | any given year. No costs of any such purchases of | ||||||
15 | carbon offsets may be recovered from a utility or | ||||||
16 | its customers. All carbon offsets purchased for | ||||||
17 | this purpose and any carbon emission credits | ||||||
18 | associated with sequestration of carbon from the | ||||||
19 | facility must be permanently retired. The initial | ||||||
20 | clean coal facility shall not forfeit its | ||||||
21 | designation as a clean coal facility if the | ||||||
22 | facility fails to fully comply with the applicable | ||||||
23 | carbon sequestration requirements in any given | ||||||
24 | year, provided the requisite offsets are | ||||||
25 | purchased. However, the Attorney General, on | ||||||
26 | behalf of the People of the State of Illinois, may |
| |||||||
| |||||||
1 | specifically enforce the facility's sequestration | ||||||
2 | requirement and the other terms of this contract | ||||||
3 | provision. Compliance with the sequestration | ||||||
4 | requirements and offset purchase requirements | ||||||
5 | specified in paragraph (3) of this subsection (d) | ||||||
6 | shall be reviewed annually by an independent | ||||||
7 | expert retained by the owner of the initial clean | ||||||
8 | coal facility, with the advance written approval | ||||||
9 | of the Attorney General. The Commission may, in | ||||||
10 | the course of the review specified in item (vii), | ||||||
11 | reduce the allowable return on equity for the | ||||||
12 | facility if the facility willfully fails to comply | ||||||
13 | with the carbon capture and sequestration | ||||||
14 | requirements set forth in this item (v); | ||||||
15 | (vi) include limits on, and accordingly | ||||||
16 | provide for modification of, the amount the | ||||||
17 | utility is required to source under the sourcing | ||||||
18 | agreement consistent with paragraph (2) of this | ||||||
19 | subsection (d); | ||||||
20 | (vii) require Commission review: (1) to | ||||||
21 | determine the justness, reasonableness, and | ||||||
22 | prudence of the inputs to the formula referenced | ||||||
23 | in subparagraphs (A)(i) through (A)(iii) of | ||||||
24 | paragraph (3) of this subsection (d), prior to an | ||||||
25 | adjustment in those inputs including, without | ||||||
26 | limitation, the capital structure and return on |
| |||||||
| |||||||
1 | equity, fuel costs, and other operations and | ||||||
2 | maintenance costs and (2) to approve the costs to | ||||||
3 | be passed through to customers under the sourcing | ||||||
4 | agreement by which the utility satisfies its | ||||||
5 | statutory obligations. Commission review shall | ||||||
6 | occur no less than every 3 years, regardless of | ||||||
7 | whether any adjustments have been proposed, and | ||||||
8 | shall be completed within 9 months; | ||||||
9 | (viii) limit the utility's obligation to such | ||||||
10 | amount as the utility is allowed to recover | ||||||
11 | through tariffs filed with the Commission, | ||||||
12 | provided that neither the clean coal facility nor | ||||||
13 | the utility waives any right to assert federal | ||||||
14 | pre-emption or any other argument in response to a | ||||||
15 | purported disallowance of recovery costs; | ||||||
16 | (ix) limit the utility's or alternative retail | ||||||
17 | electric supplier's obligation to incur any | ||||||
18 | liability until such time as the facility is in | ||||||
19 | commercial operation and generating power and | ||||||
20 | energy and such power and energy is being | ||||||
21 | delivered to the facility busbar; | ||||||
22 | (x) provide that the owner or owners of the | ||||||
23 | initial clean coal facility, which is the | ||||||
24 | counterparty to such sourcing agreement, shall | ||||||
25 | have the right from time to time to elect whether | ||||||
26 | the obligations of the utility party thereto shall |
| |||||||
| |||||||
1 | be governed by the power purchase provisions or | ||||||
2 | the contract for differences provisions; | ||||||
3 | (xi) append documentation showing that the | ||||||
4 | formula rate and contract, insofar as they relate | ||||||
5 | to the power purchase provisions, have been | ||||||
6 | approved by the Federal Energy Regulatory | ||||||
7 | Commission pursuant to Section 205 of the Federal | ||||||
8 | Power Act; | ||||||
9 | (xii) provide that any changes to the terms of | ||||||
10 | the contract, insofar as such changes relate to | ||||||
11 | the power purchase provisions, are subject to | ||||||
12 | review under the public interest standard applied | ||||||
13 | by the Federal Energy Regulatory Commission | ||||||
14 | pursuant to Sections 205 and 206 of the Federal | ||||||
15 | Power Act; and | ||||||
16 | (xiii) conform with customary lender | ||||||
17 | requirements in power purchase agreements used as | ||||||
18 | the basis for financing non-utility generators. | ||||||
19 | (4) Effective date of sourcing agreements with the | ||||||
20 | initial clean coal facility. Any proposed sourcing | ||||||
21 | agreement with the initial clean coal facility shall not | ||||||
22 | become effective unless the following reports are prepared | ||||||
23 | and submitted and authorizations and approvals obtained: | ||||||
24 | (i) Facility cost report. The owner of the initial | ||||||
25 | clean coal facility shall submit to the Commission, | ||||||
26 | the Agency, and the General Assembly a front-end |
| |||||||
| |||||||
1 | engineering and design study, a facility cost report, | ||||||
2 | method of financing (including but not limited to | ||||||
3 | structure and associated costs), and an operating and | ||||||
4 | maintenance cost quote for the facility (collectively | ||||||
5 | "facility cost report"), which shall be prepared in | ||||||
6 | accordance with the requirements of this paragraph (4) | ||||||
7 | of subsection (d) of this Section, and shall provide | ||||||
8 | the Commission and the Agency access to the work | ||||||
9 | papers, relied upon documents, and any other backup | ||||||
10 | documentation related to the facility cost report. | ||||||
11 | (ii) Commission report. Within 6 months following | ||||||
12 | receipt of the facility cost report, the Commission, | ||||||
13 | in consultation with the Agency, shall submit a report | ||||||
14 | to the General Assembly setting forth its analysis of | ||||||
15 | the facility cost report. Such report shall include, | ||||||
16 | but not be limited to, a comparison of the costs | ||||||
17 | associated with electricity generated by the initial | ||||||
18 | clean coal facility to the costs associated with | ||||||
19 | electricity generated by other types of generation | ||||||
20 | facilities, an analysis of the rate impacts on | ||||||
21 | residential and small business customers over the life | ||||||
22 | of the sourcing agreements, and an analysis of the | ||||||
23 | likelihood that the initial clean coal facility will | ||||||
24 | commence commercial operation by and be delivering | ||||||
25 | power to the facility's busbar by 2016. To assist in | ||||||
26 | the preparation of its report, the Commission, in |
| |||||||
| |||||||
1 | consultation with the Agency, may hire one or more | ||||||
2 | experts or consultants, the costs of which shall be | ||||||
3 | paid for by the owner of the initial clean coal | ||||||
4 | facility. The Commission and Agency may begin the | ||||||
5 | process of selecting such experts or consultants prior | ||||||
6 | to receipt of the facility cost report. | ||||||
7 | (iii) General Assembly approval. The proposed | ||||||
8 | sourcing agreements shall not take effect unless, | ||||||
9 | based on the facility cost report and the Commission's | ||||||
10 | report, the General Assembly enacts authorizing | ||||||
11 | legislation approving (A) the projected price, stated | ||||||
12 | in cents per kilowatthour, to be charged for | ||||||
13 | electricity generated by the initial clean coal | ||||||
14 | facility, (B) the projected impact on residential and | ||||||
15 | small business customers' bills over the life of the | ||||||
16 | sourcing agreements, and (C) the maximum allowable | ||||||
17 | return on equity for the project; and | ||||||
18 | (iv) Commission review. If the General Assembly | ||||||
19 | enacts authorizing legislation pursuant to | ||||||
20 | subparagraph (iii) approving a sourcing agreement, the | ||||||
21 | Commission shall, within 90 days of such enactment, | ||||||
22 | complete a review of such sourcing agreement. During | ||||||
23 | such time period, the Commission shall implement any | ||||||
24 | directive of the General Assembly, resolve any | ||||||
25 | disputes between the parties to the sourcing agreement | ||||||
26 | concerning the terms of such agreement, approve the |
| |||||||
| |||||||
1 | form of such agreement, and issue an order finding | ||||||
2 | that the sourcing agreement is prudent and reasonable. | ||||||
3 | The facility cost report shall be prepared as follows: | ||||||
4 | (A) The facility cost report shall be prepared by | ||||||
5 | duly licensed engineering and construction firms | ||||||
6 | detailing the estimated capital costs payable to one | ||||||
7 | or more contractors or suppliers for the engineering, | ||||||
8 | procurement and construction of the components | ||||||
9 | comprising the initial clean coal facility and the | ||||||
10 | estimated costs of operation and maintenance of the | ||||||
11 | facility. The facility cost report shall include: | ||||||
12 | (i) an estimate of the capital cost of the | ||||||
13 | core plant based on one or more front end | ||||||
14 | engineering and design studies for the | ||||||
15 | gasification island and related facilities. The | ||||||
16 | core plant shall include all civil, structural, | ||||||
17 | mechanical, electrical, control, and safety | ||||||
18 | systems. | ||||||
19 | (ii) an estimate of the capital cost of the | ||||||
20 | balance of the plant, including any capital costs | ||||||
21 | associated with sequestration of carbon dioxide | ||||||
22 | emissions and all interconnects and interfaces | ||||||
23 | required to operate the facility, such as | ||||||
24 | transmission of electricity, construction or | ||||||
25 | backfeed power supply, pipelines to transport | ||||||
26 | substitute natural gas or carbon dioxide, potable |
| |||||||
| |||||||
1 | water supply, natural gas supply, water supply, | ||||||
2 | water discharge, landfill, access roads, and coal | ||||||
3 | delivery. | ||||||
4 | The quoted construction costs shall be expressed | ||||||
5 | in nominal dollars as of the date that the quote is | ||||||
6 | prepared and shall include capitalized financing costs | ||||||
7 | during construction, taxes, insurance, and other | ||||||
8 | owner's costs, and an assumed escalation in materials | ||||||
9 | and labor beyond the date as of which the construction | ||||||
10 | cost quote is expressed. | ||||||
11 | (B) The front end engineering and design study for | ||||||
12 | the gasification island and the cost study for the | ||||||
13 | balance of plant shall include sufficient design work | ||||||
14 | to permit quantification of major categories of | ||||||
15 | materials, commodities and labor hours, and receipt of | ||||||
16 | quotes from vendors of major equipment required to | ||||||
17 | construct and operate the clean coal facility. | ||||||
18 | (C) The facility cost report shall also include an | ||||||
19 | operating and maintenance cost quote that will provide | ||||||
20 | the estimated cost of delivered fuel, personnel, | ||||||
21 | maintenance contracts, chemicals, catalysts, | ||||||
22 | consumables, spares, and other fixed and variable | ||||||
23 | operations and maintenance costs. The delivered fuel | ||||||
24 | cost estimate will be provided by a recognized third | ||||||
25 | party expert or experts in the fuel and transportation | ||||||
26 | industries. The balance of the operating and |
| |||||||
| |||||||
1 | maintenance cost quote, excluding delivered fuel | ||||||
2 | costs, will be developed based on the inputs provided | ||||||
3 | by duly licensed engineering and construction firms | ||||||
4 | performing the construction cost quote, potential | ||||||
5 | vendors under long-term service agreements and plant | ||||||
6 | operating agreements, or recognized third party plant | ||||||
7 | operator or operators. | ||||||
8 | The operating and maintenance cost quote | ||||||
9 | (including the cost of the front end engineering and | ||||||
10 | design study) shall be expressed in nominal dollars as | ||||||
11 | of the date that the quote is prepared and shall | ||||||
12 | include taxes, insurance, and other owner's costs, and | ||||||
13 | an assumed escalation in materials and labor beyond | ||||||
14 | the date as of which the operating and maintenance | ||||||
15 | cost quote is expressed. | ||||||
16 | (D) The facility cost report shall also include an | ||||||
17 | analysis of the initial clean coal facility's ability | ||||||
18 | to deliver power and energy into the applicable | ||||||
19 | regional transmission organization markets and an | ||||||
20 | analysis of the expected capacity factor for the | ||||||
21 | initial clean coal facility. | ||||||
22 | (E) Amounts paid to third parties unrelated to the | ||||||
23 | owner or owners of the initial clean coal facility to | ||||||
24 | prepare the core plant construction cost quote, | ||||||
25 | including the front end engineering and design study, | ||||||
26 | and the operating and maintenance cost quote will be |
| |||||||
| |||||||
1 | reimbursed through Coal Development Bonds. | ||||||
2 | (5) Re-powering and retrofitting coal-fired power | ||||||
3 | plants previously owned by Illinois utilities to qualify | ||||||
4 | as clean coal facilities. During the 2009 procurement | ||||||
5 | planning process and thereafter, the Agency and the | ||||||
6 | Commission shall consider sourcing agreements covering | ||||||
7 | electricity generated by power plants that were previously | ||||||
8 | owned by Illinois utilities and that have been or will be | ||||||
9 | converted into clean coal facilities, as defined by | ||||||
10 | Section 1-10 of this Act. Pursuant to such procurement | ||||||
11 | planning process, the owners of such facilities may | ||||||
12 | propose to the Agency sourcing agreements with utilities | ||||||
13 | and alternative retail electric suppliers required to | ||||||
14 | comply with subsection (d) of this Section and item (5) of | ||||||
15 | subsection (d) of Section 16-115 of the Public Utilities | ||||||
16 | Act, covering electricity generated by such facilities. In | ||||||
17 | the case of sourcing agreements that are power purchase | ||||||
18 | agreements, the contract price for electricity sales shall | ||||||
19 | be established on a cost of service basis. In the case of | ||||||
20 | sourcing agreements that are contracts for differences, | ||||||
21 | the contract price from which the reference price is | ||||||
22 | subtracted shall be established on a cost of service | ||||||
23 | basis. The Agency and the Commission may approve any such | ||||||
24 | utility sourcing agreements that do not exceed cost-based | ||||||
25 | benchmarks developed by the procurement administrator, in | ||||||
26 | consultation with the Commission staff, Agency staff and |
| |||||||
| |||||||
1 | the procurement monitor, subject to Commission review and | ||||||
2 | approval. The Commission shall have authority to inspect | ||||||
3 | all books and records associated with these clean coal | ||||||
4 | facilities during the term of any such contract. | ||||||
5 | (6) Costs incurred under this subsection (d) or | ||||||
6 | pursuant to a contract entered into under this subsection | ||||||
7 | (d) shall be deemed prudently incurred and reasonable in | ||||||
8 | amount and the electric utility shall be entitled to full | ||||||
9 | cost recovery pursuant to the tariffs filed with the | ||||||
10 | Commission. | ||||||
11 | (d-5) Zero emission standard. | ||||||
12 | (1) Beginning with the delivery year commencing on | ||||||
13 | June 1, 2017, the Agency shall, for electric utilities | ||||||
14 | that serve at least 100,000 retail customers in this | ||||||
15 | State, procure contracts with zero emission facilities | ||||||
16 | that are reasonably capable of generating cost-effective | ||||||
17 | zero emission credits in an amount approximately equal to | ||||||
18 | 16% of the actual amount of electricity delivered by each | ||||||
19 | electric utility to retail customers in the State during | ||||||
20 | calendar year 2014. For an electric utility serving fewer | ||||||
21 | than 100,000 retail customers in this State that | ||||||
22 | requested, under Section 16-111.5 of the Public Utilities | ||||||
23 | Act, that the Agency procure power and energy for all or a | ||||||
24 | portion of the utility's Illinois load for the delivery | ||||||
25 | year commencing June 1, 2016, the Agency shall procure | ||||||
26 | contracts with zero emission facilities that are |
| |||||||
| |||||||
1 | reasonably capable of generating cost-effective zero | ||||||
2 | emission credits in an amount approximately equal to 16% | ||||||
3 | of the portion of power and energy to be procured by the | ||||||
4 | Agency for the utility. The duration of the contracts | ||||||
5 | procured under this subsection (d-5) shall be for a term | ||||||
6 | of 10 years ending May 31, 2027. The quantity of zero | ||||||
7 | emission credits to be procured under the contracts shall | ||||||
8 | be all of the zero emission credits generated by the zero | ||||||
9 | emission facility in each delivery year; however, if the | ||||||
10 | zero emission facility is owned by more than one entity, | ||||||
11 | then the quantity of zero emission credits to be procured | ||||||
12 | under the contracts shall be the amount of zero emission | ||||||
13 | credits that are generated from the portion of the zero | ||||||
14 | emission facility that is owned by the winning supplier. | ||||||
15 | The 16% value identified in this paragraph (1) is the | ||||||
16 | average of the percentage targets in subparagraph (B) of | ||||||
17 | paragraph (1) of subsection (c) of this Section for the 5 | ||||||
18 | delivery years beginning June 1, 2017. | ||||||
19 | The procurement process shall be subject to the | ||||||
20 | following provisions: | ||||||
21 | (A) Those zero emission facilities that intend to | ||||||
22 | participate in the procurement shall submit to the | ||||||
23 | Agency the following eligibility information for each | ||||||
24 | zero emission facility on or before the date | ||||||
25 | established by the Agency: | ||||||
26 | (i) the in-service date and remaining useful |
| |||||||
| |||||||
1 | life of the zero emission facility; | ||||||
2 | (ii) the amount of power generated annually | ||||||
3 | for each of the years 2005 through 2015, and the | ||||||
4 | projected zero emission credits to be generated | ||||||
5 | over the remaining useful life of the zero | ||||||
6 | emission facility, which shall be used to | ||||||
7 | determine the capability of each facility; | ||||||
8 | (iii) the annual zero emission facility cost | ||||||
9 | projections, expressed on a per megawatt hour | ||||||
10 | megawatthour basis, over the next 6 delivery | ||||||
11 | years, which shall include the following: | ||||||
12 | operation and maintenance expenses; fully | ||||||
13 | allocated overhead costs, which shall be allocated | ||||||
14 | using the methodology developed by the Institute | ||||||
15 | for Nuclear Power Operations; fuel expenditures; | ||||||
16 | non-fuel capital expenditures; spent fuel | ||||||
17 | expenditures; a return on working capital; the | ||||||
18 | cost of operational and market risks that could be | ||||||
19 | avoided by ceasing operation; and any other costs | ||||||
20 | necessary for continued operations, provided that | ||||||
21 | "necessary" means, for purposes of this item | ||||||
22 | (iii), that the costs could reasonably be avoided | ||||||
23 | only by ceasing operations of the zero emission | ||||||
24 | facility; and | ||||||
25 | (iv) a commitment to continue operating, for | ||||||
26 | the duration of the contract or contracts executed |
| |||||||
| |||||||
1 | under the procurement held under this subsection | ||||||
2 | (d-5), the zero emission facility that produces | ||||||
3 | the zero emission credits to be procured in the | ||||||
4 | procurement. | ||||||
5 | The information described in item (iii) of this | ||||||
6 | subparagraph (A) may be submitted on a confidential | ||||||
7 | basis and shall be treated and maintained by the | ||||||
8 | Agency, the procurement administrator, and the | ||||||
9 | Commission as confidential and proprietary and exempt | ||||||
10 | from disclosure under subparagraphs (a) and (g) of | ||||||
11 | paragraph (1) of Section 7 of the Freedom of | ||||||
12 | Information Act. The Office of Attorney General shall | ||||||
13 | have access to, and maintain the confidentiality of, | ||||||
14 | such information pursuant to Section 6.5 of the | ||||||
15 | Attorney General Act. | ||||||
16 | (B) The price for each zero emission credit | ||||||
17 | procured under this subsection (d-5) for each delivery | ||||||
18 | year shall be in an amount that equals the Social Cost | ||||||
19 | of Carbon, expressed on a price per megawatt hour | ||||||
20 | megawatthour basis. However, to ensure that the | ||||||
21 | procurement remains affordable to retail customers in | ||||||
22 | this State if electricity prices increase, the price | ||||||
23 | in an applicable delivery year shall be reduced below | ||||||
24 | the Social Cost of Carbon by the amount ("Price | ||||||
25 | Adjustment") by which the market price index for the | ||||||
26 | applicable delivery year exceeds the baseline market |
| |||||||
| |||||||
1 | price index for the consecutive 12-month period ending | ||||||
2 | May 31, 2016. If the Price Adjustment is greater than | ||||||
3 | or equal to the Social Cost of Carbon in an applicable | ||||||
4 | delivery year, then no payments shall be due in that | ||||||
5 | delivery year. The components of this calculation are | ||||||
6 | defined as follows: | ||||||
7 | (i) Social Cost of Carbon: The Social Cost of | ||||||
8 | Carbon is $16.50 per megawatt hour megawatthour , | ||||||
9 | which is based on the U.S. Interagency Working | ||||||
10 | Group on Social Cost of Carbon's price in the | ||||||
11 | August 2016 Technical Update using a 3% discount | ||||||
12 | rate, adjusted for inflation for each year of the | ||||||
13 | program. Beginning with the delivery year | ||||||
14 | commencing June 1, 2023, the price per megawatt | ||||||
15 | hour megawatthour shall increase by $1 per | ||||||
16 | megawatt hour megawatthour , and continue to | ||||||
17 | increase by an additional $1 per megawatt hour | ||||||
18 | megawatthour each delivery year thereafter. | ||||||
19 | (ii) Baseline market price index: The baseline | ||||||
20 | market price index for the consecutive 12-month | ||||||
21 | period ending May 31, 2016 is $31.40 per megawatt | ||||||
22 | hour megawatthour , which is based on the sum of | ||||||
23 | (aa) the average day-ahead energy price across all | ||||||
24 | hours of such 12-month period at the PJM | ||||||
25 | Interconnection LLC Northern Illinois Hub, (bb) | ||||||
26 | 50% multiplied by the Base Residual Auction, or |
| |||||||
| |||||||
1 | its successor, capacity price for the rest of the | ||||||
2 | RTO zone group determined by PJM Interconnection | ||||||
3 | LLC, divided by 24 hours per day, and (cc) 50% | ||||||
4 | multiplied by the Planning Resource Auction, or | ||||||
5 | its successor, capacity price for Zone 4 | ||||||
6 | determined by the Midcontinent Independent System | ||||||
7 | Operator, Inc., divided by 24 hours per day. | ||||||
8 | (iii) Market price index: The market price | ||||||
9 | index for a delivery year shall be the sum of | ||||||
10 | projected energy prices and projected capacity | ||||||
11 | prices determined as follows: | ||||||
12 | (aa) Projected energy prices: the | ||||||
13 | projected energy prices for the applicable | ||||||
14 | delivery year shall be calculated once for the | ||||||
15 | year using the forward market price for the | ||||||
16 | PJM Interconnection, LLC Northern Illinois | ||||||
17 | Hub. The forward market price shall be | ||||||
18 | calculated as follows: the energy forward | ||||||
19 | prices for each month of the applicable | ||||||
20 | delivery year averaged for each trade date | ||||||
21 | during the calendar year immediately preceding | ||||||
22 | that delivery year to produce a single energy | ||||||
23 | forward price for the delivery year. The | ||||||
24 | forward market price calculation shall use | ||||||
25 | data published by the Intercontinental | ||||||
26 | Exchange, or its successor. |
| |||||||
| |||||||
1 | (bb) Projected capacity prices: | ||||||
2 | (I) For the delivery years commencing | ||||||
3 | June 1, 2017, June 1, 2018, and June 1, | ||||||
4 | 2019, the projected capacity price shall | ||||||
5 | be equal to the sum of (1) 50% multiplied | ||||||
6 | by the Base Residual Auction, or its | ||||||
7 | successor, price for the rest of the RTO | ||||||
8 | zone group as determined by PJM | ||||||
9 | Interconnection LLC, divided by 24 hours | ||||||
10 | per day and, (2) 50% multiplied by the | ||||||
11 | resource auction price determined in the | ||||||
12 | resource auction administered by the | ||||||
13 | Midcontinent Independent System Operator, | ||||||
14 | Inc., in which the largest percentage of | ||||||
15 | load cleared for Local Resource Zone 4, | ||||||
16 | divided by 24 hours per day, and where | ||||||
17 | such price is determined by the | ||||||
18 | Midcontinent Independent System Operator, | ||||||
19 | Inc. | ||||||
20 | (II) For the delivery year commencing | ||||||
21 | June 1, 2020, and each year thereafter, | ||||||
22 | the projected capacity price shall be | ||||||
23 | equal to the sum of (1) 50% multiplied by | ||||||
24 | the Base Residual Auction, or its | ||||||
25 | successor, price for the ComEd zone as | ||||||
26 | determined by PJM Interconnection LLC, |
| |||||||
| |||||||
1 | divided by 24 hours per day, and (2) 50% | ||||||
2 | multiplied by the resource auction price | ||||||
3 | determined in the resource auction | ||||||
4 | administered by the Midcontinent | ||||||
5 | Independent System Operator, Inc., in | ||||||
6 | which the largest percentage of load | ||||||
7 | cleared for Local Resource Zone 4, divided | ||||||
8 | by 24 hours per day, and where such price | ||||||
9 | is determined by the Midcontinent | ||||||
10 | Independent System Operator, Inc. | ||||||
11 | For purposes of this subsection (d-5): | ||||||
12 | "Rest of the RTO" and "ComEd Zone" shall have | ||||||
13 | the meaning ascribed to them by PJM | ||||||
14 | Interconnection, LLC. | ||||||
15 | "RTO" means regional transmission | ||||||
16 | organization. | ||||||
17 | (C) No later than 45 days after June 1, 2017 (the | ||||||
18 | effective date of Public Act 99-906), the Agency shall | ||||||
19 | publish its proposed zero emission standard | ||||||
20 | procurement plan. The plan shall be consistent with | ||||||
21 | the provisions of this paragraph (1) and shall provide | ||||||
22 | that winning bids shall be selected based on public | ||||||
23 | interest criteria that include, but are not limited | ||||||
24 | to, minimizing carbon dioxide emissions that result | ||||||
25 | from electricity consumed in Illinois and minimizing | ||||||
26 | sulfur dioxide, nitrogen oxide, and particulate matter |
| |||||||
| |||||||
1 | emissions that adversely affect the citizens of this | ||||||
2 | State. In particular, the selection of winning bids | ||||||
3 | shall take into account the incremental environmental | ||||||
4 | benefits resulting from the procurement, such as any | ||||||
5 | existing environmental benefits that are preserved by | ||||||
6 | the procurements held under Public Act 99-906 and | ||||||
7 | would cease to exist if the procurements were not | ||||||
8 | held, including the preservation of zero emission | ||||||
9 | facilities. The plan shall also describe in detail how | ||||||
10 | each public interest factor shall be considered and | ||||||
11 | weighted in the bid selection process to ensure that | ||||||
12 | the public interest criteria are applied to the | ||||||
13 | procurement and given full effect. | ||||||
14 | For purposes of developing the plan, the Agency | ||||||
15 | shall consider any reports issued by a State agency, | ||||||
16 | board, or commission under House Resolution 1146 of | ||||||
17 | the 98th General Assembly and paragraph (4) of | ||||||
18 | subsection (d) of this Section, as well as publicly | ||||||
19 | available analyses and studies performed by or for | ||||||
20 | regional transmission organizations that serve the | ||||||
21 | State and their independent market monitors. | ||||||
22 | Upon publishing of the zero emission standard | ||||||
23 | procurement plan, copies of the plan shall be posted | ||||||
24 | and made publicly available on the Agency's website. | ||||||
25 | All interested parties shall have 10 days following | ||||||
26 | the date of posting to provide comment to the Agency on |
| |||||||
| |||||||
1 | the plan. All comments shall be posted to the Agency's | ||||||
2 | website. Following the end of the comment period, but | ||||||
3 | no more than 60 days later than June 1, 2017 (the | ||||||
4 | effective date of Public Act 99-906), the Agency shall | ||||||
5 | revise the plan as necessary based on the comments | ||||||
6 | received and file its zero emission standard | ||||||
7 | procurement plan with the Commission. | ||||||
8 | If the Commission determines that the plan will | ||||||
9 | result in the procurement of cost-effective zero | ||||||
10 | emission credits, then the Commission shall, after | ||||||
11 | notice and hearing, but no later than 45 days after the | ||||||
12 | Agency filed the plan, approve the plan or approve | ||||||
13 | with modification. For purposes of this subsection | ||||||
14 | (d-5), "cost effective" means the projected costs of | ||||||
15 | procuring zero emission credits from zero emission | ||||||
16 | facilities do not cause the limit stated in paragraph | ||||||
17 | (2) of this subsection to be exceeded. | ||||||
18 | (C-5) As part of the Commission's review and | ||||||
19 | acceptance or rejection of the procurement results, | ||||||
20 | the Commission shall, in its public notice of | ||||||
21 | successful bidders: | ||||||
22 | (i) identify how the winning bids satisfy the | ||||||
23 | public interest criteria described in subparagraph | ||||||
24 | (C) of this paragraph (1) of minimizing carbon | ||||||
25 | dioxide emissions that result from electricity | ||||||
26 | consumed in Illinois and minimizing sulfur |
| |||||||
| |||||||
1 | dioxide, nitrogen oxide, and particulate matter | ||||||
2 | emissions that adversely affect the citizens of | ||||||
3 | this State; | ||||||
4 | (ii) specifically address how the selection of | ||||||
5 | winning bids takes into account the incremental | ||||||
6 | environmental benefits resulting from the | ||||||
7 | procurement, including any existing environmental | ||||||
8 | benefits that are preserved by the procurements | ||||||
9 | held under Public Act 99-906 and would have ceased | ||||||
10 | to exist if the procurements had not been held, | ||||||
11 | such as the preservation of zero emission | ||||||
12 | facilities; | ||||||
13 | (iii) quantify the environmental benefit of | ||||||
14 | preserving the resources identified in item (ii) | ||||||
15 | of this subparagraph (C-5), including the | ||||||
16 | following: | ||||||
17 | (aa) the value of avoided greenhouse gas | ||||||
18 | emissions measured as the product of the zero | ||||||
19 | emission facilities' output over the contract | ||||||
20 | term multiplied by the U.S. Environmental | ||||||
21 | Protection Agency eGrid subregion carbon | ||||||
22 | dioxide emission rate and the U.S. Interagency | ||||||
23 | Working Group on Social Cost of Carbon's price | ||||||
24 | in the August 2016 Technical Update using a 3% | ||||||
25 | discount rate, adjusted for inflation for each | ||||||
26 | delivery year; and |
| |||||||
| |||||||
1 | (bb) the costs of replacement with other | ||||||
2 | zero carbon dioxide resources, including wind | ||||||
3 | and photovoltaic, based upon the simple | ||||||
4 | average of the following: | ||||||
5 | (I) the price, or if there is more | ||||||
6 | than one price, the average of the prices, | ||||||
7 | paid for renewable energy credits from new | ||||||
8 | utility-scale wind projects in the | ||||||
9 | procurement events specified in item (i) | ||||||
10 | of subparagraph (G) of paragraph (1) of | ||||||
11 | subsection (c) of this Section; and | ||||||
12 | (II) the price, or if there is more | ||||||
13 | than one price, the average of the prices, | ||||||
14 | paid for renewable energy credits from new | ||||||
15 | utility-scale solar projects and | ||||||
16 | brownfield site photovoltaic projects in | ||||||
17 | the procurement events specified in item | ||||||
18 | (ii) of subparagraph (G) of paragraph (1) | ||||||
19 | of subsection (c) of this Section and, | ||||||
20 | after January 1, 2015, renewable energy | ||||||
21 | credits from photovoltaic distributed | ||||||
22 | generation projects in procurement events | ||||||
23 | held under subsection (c) of this Section. | ||||||
24 | Each utility shall enter into binding contractual | ||||||
25 | arrangements with the winning suppliers. | ||||||
26 | The procurement described in this subsection |
| |||||||
| |||||||
1 | (d-5), including, but not limited to, the execution of | ||||||
2 | all contracts procured, shall be completed no later | ||||||
3 | than May 10, 2017. Based on the effective date of | ||||||
4 | Public Act 99-906, the Agency and Commission may, as | ||||||
5 | appropriate, modify the various dates and timelines | ||||||
6 | under this subparagraph and subparagraphs (C) and (D) | ||||||
7 | of this paragraph (1). The procurement and plan | ||||||
8 | approval processes required by this subsection (d-5) | ||||||
9 | shall be conducted in conjunction with the procurement | ||||||
10 | and plan approval processes required by subsection (c) | ||||||
11 | of this Section and Section 16-111.5 of the Public | ||||||
12 | Utilities Act, to the extent practicable. | ||||||
13 | Notwithstanding whether a procurement event is | ||||||
14 | conducted under Section 16-111.5 of the Public | ||||||
15 | Utilities Act, the Agency shall immediately initiate a | ||||||
16 | procurement process on June 1, 2017 (the effective | ||||||
17 | date of Public Act 99-906). | ||||||
18 | (D) Following the procurement event described in | ||||||
19 | this paragraph (1) and consistent with subparagraph | ||||||
20 | (B) of this paragraph (1), the Agency shall calculate | ||||||
21 | the payments to be made under each contract for the | ||||||
22 | next delivery year based on the market price index for | ||||||
23 | that delivery year. The Agency shall publish the | ||||||
24 | payment calculations no later than May 25, 2017 and | ||||||
25 | every May 25 thereafter. | ||||||
26 | (E) Notwithstanding the requirements of this |
| |||||||
| |||||||
1 | subsection (d-5), the contracts executed under this | ||||||
2 | subsection (d-5) shall provide that the zero emission | ||||||
3 | facility may, as applicable, suspend or terminate | ||||||
4 | performance under the contracts in the following | ||||||
5 | instances: | ||||||
6 | (i) A zero emission facility shall be excused | ||||||
7 | from its performance under the contract for any | ||||||
8 | cause beyond the control of the resource, | ||||||
9 | including, but not restricted to, acts of God, | ||||||
10 | flood, drought, earthquake, storm, fire, | ||||||
11 | lightning, epidemic, war, riot, civil disturbance | ||||||
12 | or disobedience, labor dispute, labor or material | ||||||
13 | shortage, sabotage, acts of public enemy, | ||||||
14 | explosions, orders, regulations or restrictions | ||||||
15 | imposed by governmental, military, or lawfully | ||||||
16 | established civilian authorities, which, in any of | ||||||
17 | the foregoing cases, by exercise of commercially | ||||||
18 | reasonable efforts the zero emission facility | ||||||
19 | could not reasonably have been expected to avoid, | ||||||
20 | and which, by the exercise of commercially | ||||||
21 | reasonable efforts, it has been unable to | ||||||
22 | overcome. In such event, the zero emission | ||||||
23 | facility shall be excused from performance for the | ||||||
24 | duration of the event, including, but not limited | ||||||
25 | to, delivery of zero emission credits, and no | ||||||
26 | payment shall be due to the zero emission facility |
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1 | during the duration of the event. | ||||||
2 | (ii) A zero emission facility shall be | ||||||
3 | permitted to terminate the contract if legislation | ||||||
4 | is enacted into law by the General Assembly that | ||||||
5 | imposes or authorizes a new tax, special | ||||||
6 | assessment, or fee on the generation of | ||||||
7 | electricity, the ownership or leasehold of a | ||||||
8 | generating unit, or the privilege or occupation of | ||||||
9 | such generation, ownership, or leasehold of | ||||||
10 | generation units by a zero emission facility. | ||||||
11 | However, the provisions of this item (ii) do not | ||||||
12 | apply to any generally applicable tax, special | ||||||
13 | assessment or fee, or requirements imposed by | ||||||
14 | federal law. | ||||||
15 | (iii) A zero emission facility shall be | ||||||
16 | permitted to terminate the contract in the event | ||||||
17 | that the resource requires capital expenditures in | ||||||
18 | excess of $40,000,000 that were neither known nor | ||||||
19 | reasonably foreseeable at the time it executed the | ||||||
20 | contract and that a prudent owner or operator of | ||||||
21 | such resource would not undertake. | ||||||
22 | (iv) A zero emission facility shall be | ||||||
23 | permitted to terminate the contract in the event | ||||||
24 | the Nuclear Regulatory Commission terminates the | ||||||
25 | resource's license. | ||||||
26 | (F) If the zero emission facility elects to |
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1 | terminate a contract under subparagraph (E) of this | ||||||
2 | paragraph (1), then the Commission shall reopen the | ||||||
3 | docket in which the Commission approved the zero | ||||||
4 | emission standard procurement plan under subparagraph | ||||||
5 | (C) of this paragraph (1) and, after notice and | ||||||
6 | hearing, enter an order acknowledging the contract | ||||||
7 | termination election if such termination is consistent | ||||||
8 | with the provisions of this subsection (d-5). | ||||||
9 | (2) For purposes of this subsection (d-5), the amount | ||||||
10 | paid per kilowatthour means the total amount paid for | ||||||
11 | electric service expressed on a per kilowatthour basis. | ||||||
12 | For purposes of this subsection (d-5), the total amount | ||||||
13 | paid for electric service includes, without limitation, | ||||||
14 | amounts paid for supply, transmission, distribution, | ||||||
15 | surcharges, and add-on taxes. | ||||||
16 | Notwithstanding the requirements of this subsection | ||||||
17 | (d-5), the contracts executed under this subsection (d-5) | ||||||
18 | shall provide that the total of zero emission credits | ||||||
19 | procured under a procurement plan shall be subject to the | ||||||
20 | limitations of this paragraph (2). For each delivery year, | ||||||
21 | the contractual volume receiving payments in such year | ||||||
22 | shall be reduced for all retail customers based on the | ||||||
23 | amount necessary to limit the net increase that delivery | ||||||
24 | year to the costs of those credits included in the amounts | ||||||
25 | paid by eligible retail customers in connection with | ||||||
26 | electric service to no more than 1.65% of the amount paid |
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1 | per kilowatthour by eligible retail customers during the | ||||||
2 | year ending May 31, 2009. The result of this computation | ||||||
3 | shall apply to and reduce the procurement for all retail | ||||||
4 | customers, and all those customers shall pay the same | ||||||
5 | single, uniform cents per kilowatthour charge under | ||||||
6 | subsection (k) of Section 16-108 of the Public Utilities | ||||||
7 | Act. To arrive at a maximum dollar amount of zero emission | ||||||
8 | credits to be paid for the particular delivery year, the | ||||||
9 | resulting per kilowatthour amount shall be applied to the | ||||||
10 | actual amount of kilowatthours of electricity delivered by | ||||||
11 | the electric utility in the delivery year immediately | ||||||
12 | prior to the procurement, to all retail customers in its | ||||||
13 | service territory. Unpaid contractual volume for any | ||||||
14 | delivery year shall be paid in any subsequent delivery | ||||||
15 | year in which such payments can be made without exceeding | ||||||
16 | the amount specified in this paragraph (2). The | ||||||
17 | calculations required by this paragraph (2) shall be made | ||||||
18 | only once for each procurement plan year. Once the | ||||||
19 | determination as to the amount of zero emission credits to | ||||||
20 | be paid is made based on the calculations set forth in this | ||||||
21 | paragraph (2), no subsequent rate impact determinations | ||||||
22 | shall be made and no adjustments to those contract amounts | ||||||
23 | shall be allowed. All costs incurred under those contracts | ||||||
24 | and in implementing this subsection (d-5) shall be | ||||||
25 | recovered by the electric utility as provided in this | ||||||
26 | Section. |
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1 | No later than June 30, 2019, the Commission shall | ||||||
2 | review the limitation on the amount of zero emission | ||||||
3 | credits procured under this subsection (d-5) and report to | ||||||
4 | the General Assembly its findings as to whether that | ||||||
5 | limitation unduly constrains the procurement of | ||||||
6 | cost-effective zero emission credits. | ||||||
7 | (3) Six years after the execution of a contract under | ||||||
8 | this subsection (d-5), the Agency shall determine whether | ||||||
9 | the actual zero emission credit payments received by the | ||||||
10 | supplier over the 6-year period exceed the Average ZEC | ||||||
11 | Payment. In addition, at the end of the term of a contract | ||||||
12 | executed under this subsection (d-5), or at the time, if | ||||||
13 | any, a zero emission facility's contract is terminated | ||||||
14 | under subparagraph (E) of paragraph (1) of this subsection | ||||||
15 | (d-5), then the Agency shall determine whether the actual | ||||||
16 | zero emission credit payments received by the supplier | ||||||
17 | over the term of the contract exceed the Average ZEC | ||||||
18 | Payment, after taking into account any amounts previously | ||||||
19 | credited back to the utility under this paragraph (3). If | ||||||
20 | the Agency determines that the actual zero emission credit | ||||||
21 | payments received by the supplier over the relevant period | ||||||
22 | exceed the Average ZEC Payment, then the supplier shall | ||||||
23 | credit the difference back to the utility. The amount of | ||||||
24 | the credit shall be remitted to the applicable electric | ||||||
25 | utility no later than 120 days after the Agency's | ||||||
26 | determination, which the utility shall reflect as a credit |
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| |||||||
1 | on its retail customer bills as soon as practicable; | ||||||
2 | however, the credit remitted to the utility shall not | ||||||
3 | exceed the total amount of payments received by the | ||||||
4 | facility under its contract. | ||||||
5 | For purposes of this Section, the Average ZEC Payment | ||||||
6 | shall be calculated by multiplying the quantity of zero | ||||||
7 | emission credits delivered under the contract times the | ||||||
8 | average contract price. The average contract price shall | ||||||
9 | be determined by subtracting the amount calculated under | ||||||
10 | subparagraph (B) of this paragraph (3) from the amount | ||||||
11 | calculated under subparagraph (A) of this paragraph (3), | ||||||
12 | as follows: | ||||||
13 | (A) The average of the Social Cost of Carbon, as | ||||||
14 | defined in subparagraph (B) of paragraph (1) of this | ||||||
15 | subsection (d-5), during the term of the contract. | ||||||
16 | (B) The average of the market price indices, as | ||||||
17 | defined in subparagraph (B) of paragraph (1) of this | ||||||
18 | subsection (d-5), during the term of the contract, | ||||||
19 | minus the baseline market price index, as defined in | ||||||
20 | subparagraph (B) of paragraph (1) of this subsection | ||||||
21 | (d-5). | ||||||
22 | If the subtraction yields a negative number, then the | ||||||
23 | Average ZEC Payment shall be zero. | ||||||
24 | (4) Cost-effective zero emission credits procured from | ||||||
25 | zero emission facilities shall satisfy the applicable | ||||||
26 | definitions set forth in Section 1-10 of this Act. |
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| |||||||
1 | (5) The electric utility shall retire all zero | ||||||
2 | emission credits used to comply with the requirements of | ||||||
3 | this subsection (d-5). | ||||||
4 | (6) Electric utilities shall be entitled to recover | ||||||
5 | all of the costs associated with the procurement of zero | ||||||
6 | emission credits through an automatic adjustment clause | ||||||
7 | tariff in accordance with subsection (k) and (m) of | ||||||
8 | Section 16-108 of the Public Utilities Act, and the | ||||||
9 | contracts executed under this subsection (d-5) shall | ||||||
10 | provide that the utilities' payment obligations under such | ||||||
11 | contracts shall be reduced if an adjustment is required | ||||||
12 | under subsection (m) of Section 16-108 of the Public | ||||||
13 | Utilities Act. | ||||||
14 | (7) This subsection (d-5) shall become inoperative on | ||||||
15 | January 1, 2028. | ||||||
16 | (d-10) Nuclear Plant Assistance; carbon mitigation | ||||||
17 | credits. | ||||||
18 | (1) The General Assembly finds: | ||||||
19 | (A) The health, welfare, and prosperity of all | ||||||
20 | Illinois citizens require that the State of Illinois act | ||||||
21 | to avoid and not increase carbon emissions from electric | ||||||
22 | generation sources while continuing to ensure affordable, | ||||||
23 | stable, and reliable electricity to all citizens. | ||||||
24 | (B) Absent immediate action by the State to preserve | ||||||
25 | existing carbon-free energy resources, those resources may | ||||||
26 | retire, and the electric generation needs of Illinois' |
| |||||||
| |||||||
1 | retail customers may be met instead by facilities that | ||||||
2 | emit significant amounts of carbon pollution and other | ||||||
3 | harmful air pollutants at a high social and economic cost | ||||||
4 | until Illinois is able to develop other forms of clean | ||||||
5 | energy. | ||||||
6 | (C) The General Assembly finds that nuclear power | ||||||
7 | generation is necessary for the State's transition to 100% | ||||||
8 | clean energy, and ensuring continued operation of nuclear | ||||||
9 | plants advances environmental and public health interests | ||||||
10 | through providing carbon-free electricity while reducing | ||||||
11 | the air pollution profile of the Illinois energy | ||||||
12 | generation fleet. | ||||||
13 | (D) The clean energy attributes of nuclear generation | ||||||
14 | facilities support the State in its efforts to achieve | ||||||
15 | 100% clean energy. | ||||||
16 | (E) The State currently invests in various forms of | ||||||
17 | clean energy, including, but not limited to, renewable | ||||||
18 | energy, energy efficiency, and low-emission vehicles, | ||||||
19 | among others. | ||||||
20 | (F) The Environmental Protection Agency commissioned | ||||||
21 | an independent audit which provided a detailed assessment | ||||||
22 | of the financial condition of the Illinois nuclear fleet | ||||||
23 | to evaluate its financial viability and whether the | ||||||
24 | environmental benefits of such resources were at risk. The | ||||||
25 | report identified the risk of losing the environmental | ||||||
26 | benefits of several specific nuclear units. The report |
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1 | also identified that the LaSalle County Generating Station | ||||||
2 | will continue to operate through 2026 and therefore is not | ||||||
3 | eligible to participate in the carbon mitigation credit | ||||||
4 | program. | ||||||
5 | (G) Nuclear plants provide carbon-free energy, which | ||||||
6 | helps to avoid many health-related negative impacts for | ||||||
7 | Illinois residents. | ||||||
8 | (H) The procurement of carbon mitigation credits | ||||||
9 | representing the environmental benefits of carbon-free | ||||||
10 | generation will further the State's efforts at achieving | ||||||
11 | 100% clean energy and decarbonizing the electricity sector | ||||||
12 | in a safe, reliable, and affordable manner. Further, the | ||||||
13 | procurement of carbon emission credits will enhance the | ||||||
14 | health and welfare of Illinois residents through decreased | ||||||
15 | reliance on more highly polluting generation. | ||||||
16 | (I) The General Assembly therefore finds it necessary | ||||||
17 | to establish carbon mitigation credits to ensure decreased | ||||||
18 | reliance on more carbon-intensive energy resources, for | ||||||
19 | transitioning to a fully decarbonized electricity sector, | ||||||
20 | and to help ensure health and welfare of the State's | ||||||
21 | residents. | ||||||
22 | (2) As used in this subsection: | ||||||
23 | "Baseline costs" means costs used to establish a customer | ||||||
24 | protection cap that have been evaluated through an independent | ||||||
25 | audit of a carbon-free energy resource conducted by the | ||||||
26 | Environmental Protection Agency that evaluated projected |
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| |||||||
1 | annual costs for operation and maintenance expenses; fully | ||||||
2 | allocated overhead costs, which shall be allocated using the | ||||||
3 | methodology developed by the Institute for Nuclear Power | ||||||
4 | Operations; fuel expenditures; nonfuel capital expenditures; | ||||||
5 | spent fuel expenditures; a return on working capital; the cost | ||||||
6 | of operational and market risks that could be avoided by | ||||||
7 | ceasing operation; and any other costs necessary for continued | ||||||
8 | operations, provided that "necessary" means, for purposes of | ||||||
9 | this definition, that the costs could reasonably be avoided | ||||||
10 | only by ceasing operations of the carbon-free energy resource. | ||||||
11 | "Carbon mitigation credit" means a tradable credit that | ||||||
12 | represents the carbon emission reduction attributes of one | ||||||
13 | megawatt-hour of energy produced from a carbon-free energy | ||||||
14 | resource. | ||||||
15 | "Carbon-free energy resource" means a generation facility | ||||||
16 | that: (1) is fueled by nuclear power; and (2) is | ||||||
17 | interconnected to PJM Interconnection, LLC. | ||||||
18 | (3) Procurement. | ||||||
19 | (A) Beginning with the delivery year commencing on | ||||||
20 | June 1, 2022, the Agency shall, for electric utilities | ||||||
21 | serving at least 3,000,000 retail customers in the State, | ||||||
22 | seek to procure contracts for no more than approximately | ||||||
23 | 54,500,000 cost-effective carbon mitigation credits from | ||||||
24 | carbon-free energy resources because such credits are | ||||||
25 | necessary to support current levels of carbon-free energy | ||||||
26 | generation and ensure the State meets its carbon dioxide |
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1 | emissions reduction goals. The Agency shall not make a | ||||||
2 | partial award of a contract for carbon mitigation credits | ||||||
3 | covering a fractional amount of a carbon-free energy | ||||||
4 | resource's projected output. | ||||||
5 | (B) Each carbon-free energy resource that intends to | ||||||
6 | participate in a procurement shall be required to submit | ||||||
7 | to the Agency the following information for the resource | ||||||
8 | on or before the date established by the Agency: | ||||||
9 | (i) the in-service date and remaining useful life | ||||||
10 | of the carbon-free energy resource; | ||||||
11 | (ii) the amount of power generated annually for | ||||||
12 | each of the past 10 years, which shall be used to | ||||||
13 | determine the capability of each facility; | ||||||
14 | (iii) a commitment to be reflected in any contract | ||||||
15 | entered into pursuant to this subsection (d-10) to | ||||||
16 | continue operating the carbon-free energy resource at | ||||||
17 | a capacity factor of at least 88% annually on average | ||||||
18 | for the duration of the contract or contracts executed | ||||||
19 | under the procurement held under this subsection | ||||||
20 | (d-10), except in an instance described in | ||||||
21 | subparagraph (E) of paragraph (1) of subsection (d-5) | ||||||
22 | of this Section or made impracticable as a result of | ||||||
23 | compliance with law or regulation; | ||||||
24 | (iv) financial need and the risk of loss of the | ||||||
25 | environmental benefits of such resource, which shall | ||||||
26 | include the following information: |
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| |||||||
1 | (I) the carbon-free energy resource's cost | ||||||
2 | projections, expressed on a per megawatt-hour | ||||||
3 | basis, over the next 5 delivery years, which shall | ||||||
4 | include the following: operation and maintenance | ||||||
5 | expenses; fully allocated overhead costs, which | ||||||
6 | shall be allocated using the methodology developed | ||||||
7 | by the Institute for Nuclear Power Operations; | ||||||
8 | fuel expenditures; nonfuel capital expenditures; | ||||||
9 | spent fuel expenditures; a return on working | ||||||
10 | capital; the cost of operational and market risks | ||||||
11 | that could be avoided by ceasing operation; and | ||||||
12 | any other costs necessary for continued | ||||||
13 | operations, provided that "necessary" means, for | ||||||
14 | purposes of this subitem (I), that the costs could | ||||||
15 | reasonably be avoided only by ceasing operations | ||||||
16 | of the carbon-free energy resource; and | ||||||
17 | (II) the carbon-free energy resource's revenue | ||||||
18 | projections, including energy, capacity, ancillary | ||||||
19 | services, any other direct State support, known or | ||||||
20 | anticipated federal attribute credits, known or | ||||||
21 | anticipated tax credits, and any other direct | ||||||
22 | federal support. | ||||||
23 | The information described in this subparagraph (B) may | ||||||
24 | be submitted on a confidential basis and shall be treated | ||||||
25 | and maintained by the Agency, the procurement | ||||||
26 | administrator, and the Commission as confidential and |
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| |||||||
1 | proprietary and exempt from disclosure under subparagraphs | ||||||
2 | (a) and (g) of paragraph (1) of Section 7 of the Freedom of | ||||||
3 | Information Act. The Office of the Attorney General shall | ||||||
4 | have access to, and maintain the confidentiality of, such | ||||||
5 | information pursuant to Section 6.5 of the Attorney | ||||||
6 | General Act. | ||||||
7 | (C) The Agency shall solicit bids for the contracts | ||||||
8 | described in this subsection (d-10) from carbon-free | ||||||
9 | energy resources that have satisfied the requirements of | ||||||
10 | subparagraph (B) of this paragraph (3). The contracts | ||||||
11 | procured pursuant to a procurement event shall reflect, | ||||||
12 | and be subject to, the following terms, requirements, and | ||||||
13 | limitations: | ||||||
14 | (i) Contracts are for delivery of carbon | ||||||
15 | mitigation credits, and are not energy or capacity | ||||||
16 | sales contracts requiring physical delivery. Pursuant | ||||||
17 | to item (iii), contract payments shall fully deduct | ||||||
18 | the value of any monetized federal production tax | ||||||
19 | credits, credits issued pursuant to a federal clean | ||||||
20 | energy standard, and other federal credits if | ||||||
21 | applicable. | ||||||
22 | (ii) Contracts for carbon mitigation credits shall | ||||||
23 | commence with the delivery year beginning on June 1, | ||||||
24 | 2022 and shall be for a term of 5 delivery years | ||||||
25 | concluding on May 31, 2027. | ||||||
26 | (iii) The price per carbon mitigation credit to be |
| |||||||
| |||||||
1 | paid under a contract for a given delivery year shall | ||||||
2 | be equal to an accepted bid price less the sum of: | ||||||
3 | (I) one of the following energy price indices, | ||||||
4 | selected by the bidder at the time of the bid for | ||||||
5 | the term of the contract: | ||||||
6 | (aa) the weighted-average hourly day-ahead | ||||||
7 | price for the applicable delivery year at the | ||||||
8 | busbar of all resources procured pursuant to | ||||||
9 | this subsection (d-10), weighted by actual | ||||||
10 | production from the resources; or | ||||||
11 | (bb) the projected energy price for the | ||||||
12 | PJM Interconnection, LLC Northern Illinois Hub | ||||||
13 | for the applicable delivery year determined | ||||||
14 | according to subitem (aa) of item (iii) of | ||||||
15 | subparagraph (B) of paragraph (1) of | ||||||
16 | subsection (d-5). | ||||||
17 | (II) the Base Residual Auction Capacity Price | ||||||
18 | for the ComEd zone as determined by PJM | ||||||
19 | Interconnection, LLC, divided by 24 hours per day, | ||||||
20 | for the applicable delivery year for the first 3 | ||||||
21 | delivery years, and then any subsequent delivery | ||||||
22 | years unless the PJM Interconnection, LLC applies | ||||||
23 | the Minimum Offer Price Rule to participating | ||||||
24 | carbon-free energy resources because they supply | ||||||
25 | carbon mitigation credits pursuant to this Section | ||||||
26 | at which time, upon notice by the carbon-free |
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| |||||||
1 | energy resource to the Commission and subject to | ||||||
2 | the Commission's confirmation, the value under | ||||||
3 | this subitem shall be zero, as further described | ||||||
4 | in the carbon mitigation credit procurement plan; | ||||||
5 | and | ||||||
6 | (III) any value of monetized federal tax | ||||||
7 | credits, direct payments, or similar subsidy | ||||||
8 | provided to the carbon-free energy resource from | ||||||
9 | any unit of government that is not already | ||||||
10 | reflected in energy prices. | ||||||
11 | If the price-per-megawatt-hour calculation | ||||||
12 | performed under item (iii) of this subparagraph (C) | ||||||
13 | for a given delivery year results in a net positive | ||||||
14 | value, then the electric utility counterparty to the | ||||||
15 | contract shall multiply such net value by the | ||||||
16 | applicable contract quantity and remit the amount to | ||||||
17 | the supplier. | ||||||
18 | To protect retail customers from retail rate | ||||||
19 | impacts that may arise upon the initiation of carbon | ||||||
20 | policy changes, if the price-per-megawatt-hour | ||||||
21 | calculation performed under item (iii) of this | ||||||
22 | subparagraph (C) for a given delivery year results in | ||||||
23 | a net negative value, then the supplier counterparty | ||||||
24 | to the contract shall multiply such net value by the | ||||||
25 | applicable contract quantity and remit such amount to | ||||||
26 | the electric utility counterparty. The electric |
| |||||||
| |||||||
1 | utility shall reflect such amounts remitted by | ||||||
2 | suppliers as a credit on its retail customer bills as | ||||||
3 | soon as practicable. | ||||||
4 | (iv) To ensure that retail customers in Northern | ||||||
5 | Illinois do not pay more for carbon mitigation credits | ||||||
6 | than the value such credits provide, and | ||||||
7 | notwithstanding the provisions of this subsection | ||||||
8 | (d-10), the Agency shall not accept bids for contracts | ||||||
9 | that exceed a customer protection cap equal to the | ||||||
10 | baseline costs of carbon-free energy resources. | ||||||
11 | The baseline costs for the applicable year shall | ||||||
12 | be the following: | ||||||
13 | (I) For the delivery year beginning June 1, | ||||||
14 | 2022, the baseline costs shall be an amount equal | ||||||
15 | to $30.30 per megawatt-hour. | ||||||
16 | (II) For the delivery year beginning June 1, | ||||||
17 | 2023, the baseline costs shall be an amount equal | ||||||
18 | to $32.50 per megawatt-hour. | ||||||
19 | (III) For the delivery year beginning June 1, | ||||||
20 | 2024, the baseline costs shall be an amount equal | ||||||
21 | to $33.43 per megawatt-hour. | ||||||
22 | (IV) For the delivery year beginning June 1, | ||||||
23 | 2025, the baseline costs shall be an amount equal | ||||||
24 | to $33.50 per megawatt-hour. | ||||||
25 | (V) For the delivery year beginning June 1, | ||||||
26 | 2026, the baseline costs shall be an amount equal |
| |||||||
| |||||||
1 | to $34.50 per megawatt-hour. | ||||||
2 | An Environmental Protection Agency consultant | ||||||
3 | forecast, included in a report issued April 14, 2021, | ||||||
4 | projects that a carbon-free energy resource has the | ||||||
5 | opportunity to earn on average approximately $30.28 | ||||||
6 | per megawatt-hour, for the sale of energy and capacity | ||||||
7 | during the time period between 2022 and 2027. | ||||||
8 | Therefore, the sale of carbon mitigation credits | ||||||
9 | provides the opportunity to receive an additional | ||||||
10 | amount per megawatt-hour in addition to the projected | ||||||
11 | prices for energy and capacity. | ||||||
12 | Although actual energy and capacity prices may | ||||||
13 | vary from year-to-year, the General Assembly finds | ||||||
14 | that this customer protection cap will help ensure | ||||||
15 | that the cost of carbon mitigation credits will be | ||||||
16 | less than its value, based upon the social cost of | ||||||
17 | carbon identified in the Technical Support Document | ||||||
18 | issued in February 2021 by the U.S. Interagency | ||||||
19 | Working Group on Social Cost of Greenhouse Gases and | ||||||
20 | the PJM Interconnection, LLC carbon dioxide marginal | ||||||
21 | emission rate for 2020, and that a carbon-free energy | ||||||
22 | resource receiving payment for carbon mitigation | ||||||
23 | credits receives no more than necessary to keep those | ||||||
24 | units in operation. | ||||||
25 | (D) No later than 7 days after the effective date of | ||||||
26 | this amendatory Act of the 102nd General Assembly, the |
| |||||||
| |||||||
1 | Agency shall publish its proposed carbon mitigation credit | ||||||
2 | procurement plan. The Plan shall provide that winning bids | ||||||
3 | shall be selected by taking into consideration which | ||||||
4 | resources best match public interest criteria that | ||||||
5 | include, but are not limited to, minimizing carbon dioxide | ||||||
6 | emissions that result from electricity consumed in | ||||||
7 | Illinois and minimizing sulfur dioxide, nitrogen oxide, | ||||||
8 | and particulate matter emissions that adversely affect the | ||||||
9 | citizens of this State. The selection of winning bids | ||||||
10 | shall also take into account the incremental environmental | ||||||
11 | benefits resulting from the procurement or procurements, | ||||||
12 | such as any existing environmental benefits that are | ||||||
13 | preserved by a procurement held under this subsection | ||||||
14 | (d-10) and would cease to exist if the procurement were | ||||||
15 | not held, including the preservation of carbon-free energy | ||||||
16 | resources. For those bidders having the same public | ||||||
17 | interest criteria score, the relative ranking of such | ||||||
18 | bidders shall be determined by price. The Plan shall | ||||||
19 | describe in detail how each public interest factor shall | ||||||
20 | be considered and weighted in the bid selection process to | ||||||
21 | ensure that the public interest criteria are applied to | ||||||
22 | the procurement. The Plan shall, to the extent practical | ||||||
23 | and permissible by federal law, ensure that successful | ||||||
24 | bidders make commercially reasonable efforts to apply for | ||||||
25 | federal tax credits, direct payments, or similar subsidy | ||||||
26 | programs that support carbon-free generation and for which |
| |||||||
| |||||||
1 | the successful bidder is eligible. Upon publishing of the | ||||||
2 | carbon mitigation credit procurement plan, copies of the | ||||||
3 | plan shall be posted and made publicly available on the | ||||||
4 | Agency's website. All interested parties shall have 7 days | ||||||
5 | following the date of posting to provide comment to the | ||||||
6 | Agency on the plan. All comments shall be posted to the | ||||||
7 | Agency's website. Following the end of the comment period, | ||||||
8 | but no more than 19 days later than the effective date of | ||||||
9 | this amendatory Act of the 102nd General Assembly, the | ||||||
10 | Agency shall revise the plan as necessary based on the | ||||||
11 | comments received and file its carbon mitigation credit | ||||||
12 | procurement plan with the Commission. | ||||||
13 | (E) If the Commission determines that the plan is | ||||||
14 | likely to result in the procurement of cost-effective | ||||||
15 | carbon mitigation credits, then the Commission shall, | ||||||
16 | after notice and hearing and opportunity for comment, but | ||||||
17 | no later than 42 days after the Agency filed the plan, | ||||||
18 | approve the plan or approve it with modification. For | ||||||
19 | purposes of this subsection (d-10), "cost-effective" means | ||||||
20 | carbon mitigation credits that are procured from | ||||||
21 | carbon-free energy resources at prices that are within the | ||||||
22 | limits specified in this paragraph (3). As part of the | ||||||
23 | Commission's review and acceptance or rejection of the | ||||||
24 | procurement results, the Commission shall, in its public | ||||||
25 | notice of successful bidders: | ||||||
26 | (i) identify how the selected carbon-free energy |
| |||||||
| |||||||
1 | resources satisfy the public interest criteria | ||||||
2 | described in this paragraph (3) of minimizing carbon | ||||||
3 | dioxide emissions that result from electricity | ||||||
4 | consumed in Illinois and minimizing sulfur dioxide, | ||||||
5 | nitrogen oxide, and particulate matter emissions that | ||||||
6 | adversely affect the citizens of this State; | ||||||
7 | (ii) specifically address how the selection of | ||||||
8 | carbon-free energy resources takes into account the | ||||||
9 | incremental environmental benefits resulting from the | ||||||
10 | procurement, including any existing environmental | ||||||
11 | benefits that are preserved by the procurements held | ||||||
12 | under this amendatory Act of the 102nd General | ||||||
13 | Assembly and would have ceased to exist if the | ||||||
14 | procurements had not been held, such as the | ||||||
15 | preservation of carbon-free energy resources; | ||||||
16 | (iii) quantify the environmental benefit of | ||||||
17 | preserving the carbon-free energy resources procured | ||||||
18 | pursuant to this subsection (d-10), including the | ||||||
19 | following: | ||||||
20 | (I) an assessment value of avoided greenhouse | ||||||
21 | gas emissions measured as the product of the | ||||||
22 | carbon-free energy resources' output over the | ||||||
23 | contract term, using generally accepted | ||||||
24 | methodologies for the valuation of avoided | ||||||
25 | emissions; and | ||||||
26 | (II) an assessment of costs of replacement |
| |||||||
| |||||||
1 | with other carbon-free energy resources and | ||||||
2 | renewable energy resources, including wind and | ||||||
3 | photovoltaic generation, based upon an assessment | ||||||
4 | of the prices paid for renewable energy credits | ||||||
5 | through programs and procurements conducted | ||||||
6 | pursuant to subsection (c) of Section 1-75 of this | ||||||
7 | Act, and the additional storage necessary to | ||||||
8 | produce the same or similar capability of matching | ||||||
9 | customer usage patterns. | ||||||
10 | (F) The procurements described in this paragraph (3), | ||||||
11 | including, but not limited to, the execution of all | ||||||
12 | contracts procured, shall be completed no later than | ||||||
13 | December 3, 2021. The procurement and plan approval | ||||||
14 | processes required by this paragraph (3) shall be | ||||||
15 | conducted in conjunction with the procurement and plan | ||||||
16 | approval processes required by Section 16-111.5 of the | ||||||
17 | Public Utilities Act, to the extent practicable. However, | ||||||
18 | the Agency and Commission may, as appropriate, modify the | ||||||
19 | various dates and timelines under this subparagraph and | ||||||
20 | subparagraphs (D) and (E) of this paragraph (3) to meet | ||||||
21 | the December 3, 2021 contract execution deadline. | ||||||
22 | Following the completion of such procurements, and | ||||||
23 | consistent with this paragraph (3), the Agency shall | ||||||
24 | calculate the payments to be made under each contract in a | ||||||
25 | timely fashion. | ||||||
26 | (F-1) Costs incurred by the electric utility pursuant |
| |||||||
| |||||||
1 | to a contract authorized by this subsection (d-10) shall | ||||||
2 | be deemed prudently incurred and reasonable in amount, and | ||||||
3 | the electric utility shall be entitled to full cost | ||||||
4 | recovery pursuant to a tariff or tariffs filed with the | ||||||
5 | Commission. | ||||||
6 | (G) The counterparty electric utility shall retire all | ||||||
7 | carbon mitigation credits used to comply with the | ||||||
8 | requirements of this subsection (d-10). | ||||||
9 | (H) If a carbon-free energy resource is sold to | ||||||
10 | another owner, the rights, obligations, and commitments | ||||||
11 | under this subsection (d-10) shall continue to the | ||||||
12 | subsequent owner. | ||||||
13 | (I) This subsection (d-10) shall become inoperative on | ||||||
14 | January 1, 2028. | ||||||
15 | (e) The draft procurement plans are subject to public | ||||||
16 | comment, as required by Section 16-111.5 of the Public | ||||||
17 | Utilities Act. | ||||||
18 | (f) The Agency shall submit the final procurement plan to | ||||||
19 | the Commission. The Agency shall revise a procurement plan if | ||||||
20 | the Commission determines that it does not meet the standards | ||||||
21 | set forth in Section 16-111.5 of the Public Utilities Act. | ||||||
22 | (g) The Agency shall assess fees to each affected utility | ||||||
23 | to recover the costs incurred in preparation of the annual | ||||||
24 | procurement plan for the utility. | ||||||
25 | (h) The Agency shall assess fees to each bidder to recover | ||||||
26 | the costs incurred in connection with a competitive |
| |||||||
| |||||||
1 | procurement process. | ||||||
2 | (i) A renewable energy credit, carbon emission credit, | ||||||
3 | zero emission credit, or carbon mitigation credit can only be | ||||||
4 | used once to comply with a single portfolio or other standard | ||||||
5 | as set forth in subsection (c), subsection (d), or subsection | ||||||
6 | (d-5) of this Section, respectively. A renewable energy | ||||||
7 | credit, carbon emission credit, zero emission credit, or | ||||||
8 | carbon mitigation credit cannot be used to satisfy the | ||||||
9 | requirements of more than one standard. If more than one type | ||||||
10 | of credit is issued for the same megawatt hour of energy, only | ||||||
11 | one credit can be used to satisfy the requirements of a single | ||||||
12 | standard. After such use, the credit must be retired together | ||||||
13 | with any other credits issued for the same megawatt hour of | ||||||
14 | energy. | ||||||
15 | (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24; | ||||||
16 | 103-580, eff. 12-8-23.)
| ||||||
17 | (20 ILCS 3855/1-93 new) | ||||||
18 | Sec. 1-93. Energy storage credit targets. | ||||||
19 | (a) The Agency shall develop a storage procurement plan | ||||||
20 | that results in electric utilities contracting for energy | ||||||
21 | storage credits from contracted energy storage systems in the | ||||||
22 | following amounts: | ||||||
23 | (1) at least 1,000 megawatts of cumulative energy | ||||||
24 | storage capacity by the end of delivery year 2024, of | ||||||
25 | which 200 megawatts are to be procured using indexed |
| |||||||
| |||||||
1 | credits, 200 megawatts are to be procured using tolling | ||||||
2 | agreements, and 600 megawatts are to be procured using | ||||||
3 | either indexed credits or tolling agreements in the | ||||||
4 | discretion of the Agency; | ||||||
5 | (2) at least 3,000 megawatts of cumulative energy | ||||||
6 | storage capacity by delivery year 2026, with the | ||||||
7 | additional 2,000 megawatts split as follows: 400 megawatts | ||||||
8 | are to be procured using indexed credits, 400 megawatts | ||||||
9 | are to be procured using tolling agreements, and 1,200 | ||||||
10 | megawatts are to be procured using either indexed credits | ||||||
11 | or tolling agreements as approved in the long-term | ||||||
12 | procurement plan; | ||||||
13 | (3) at least 5,000 megawatts of cumulative energy | ||||||
14 | storage capacity by delivery year 2028 with the additional | ||||||
15 | 2,000 megawatts split as follows: 400 megawatts are to be | ||||||
16 | procured using indexed credits, 400 megawatts are to be | ||||||
17 | procured using tolling agreements, and 1,200 megawatts are | ||||||
18 | to be procured using either indexed credits or tolling | ||||||
19 | agreements as approved in the long-term procurement plan; | ||||||
20 | and | ||||||
21 | (4) at least 7,500 megawatts of cumulative energy | ||||||
22 | storage capacity by delivery year 2030 with the additional | ||||||
23 | 2,500 megawatts split as follows: 500 megawatts are to be | ||||||
24 | procured using indexed credits, 500 megawatts are to be | ||||||
25 | procured using tolling agreements, and 1,200 megawatts are | ||||||
26 | to be procured using either indexed credits or tolling |
| |||||||
| |||||||
1 | agreements as approved in the long-term procurement plan. | ||||||
2 | (b) Within 180 days after the effective date of this | ||||||
3 | amendatory Act of the 103rd General Assembly, the Agency shall | ||||||
4 | develop an energy storage procurement plan in accordance with | ||||||
5 | this Section and Section 16-111.5 of the Public Utilities Act. | ||||||
6 | (c) For procurements of energy storage credits, the Agency | ||||||
7 | shall procure energy storage credits using methodologies | ||||||
8 | including, but not limited to, tolling agreements and indexed | ||||||
9 | energy storage credits. The Agency shall select bids based on | ||||||
10 | the bid price when compared with equal energy storage duration | ||||||
11 | and interconnected to the same independent system operator or | ||||||
12 | regional transmission organization, and may give consideration | ||||||
13 | to project viability and developer experience. The | ||||||
14 | procurements of energy storage credits under this subsection | ||||||
15 | shall be made as follows: | ||||||
16 | (1) For indexed energy storage credit procurements, | ||||||
17 | the purchase price of the indexed energy storage credit | ||||||
18 | payment shall be calculated for each day. The payment per | ||||||
19 | energy storage credit shall be equal to the difference | ||||||
20 | resulting from subtracting from the energy storage strike | ||||||
21 | price the sum of the daily energy volatility index and the | ||||||
22 | reference capacity price for that day. If this difference | ||||||
23 | results in a positive number, the electric utility shall | ||||||
24 | owe the seller this amount multiplied by the number of | ||||||
25 | indexed energy storage credits produced on the relevant | ||||||
26 | day. If this difference results in a negative number, the |
| |||||||
| |||||||
1 | settlement shall be zero. The parties shall cash settle | ||||||
2 | every month, summing up all settlements for the prior | ||||||
3 | month. | ||||||
4 | (2) For tolling agreements, the purchase price shall | ||||||
5 | be the tolling rate as bid by the winning bidder. | ||||||
6 | (3) For pricing structures that are neither indexed | ||||||
7 | credits nor tolling agreements, the Agency, after | ||||||
8 | consideration of feedback from potential bidders and in | ||||||
9 | consideration of financiability, shall develop | ||||||
10 | methodologies for pricing structure and bidding | ||||||
11 | procedures. | ||||||
12 | For the purposes of this subsection: | ||||||
13 | "Developer experience" means the experience of a bidder or | ||||||
14 | its affiliates assessed by the Agency, including based on | ||||||
15 | quantity of energy projects brought to commercial operation, | ||||||
16 | quantity of energy projects under ownership, and awards of | ||||||
17 | incentive contracts. | ||||||
18 | "Project viability" means an assessment by the Agency, for | ||||||
19 | the purposes of bid evaluation, of the project's potential to | ||||||
20 | reach commercial operation as assessed by standards developed | ||||||
21 | by the Agency regarding permitting milestones, interconnection | ||||||
22 | milestones, and site control milestones. | ||||||
23 | (d) All procurements under this Section shall comply with | ||||||
24 | the geographic requirements in subparagraph (I) of paragraph | ||||||
25 | (1) of subsection (c) of Section 1-75 and shall follow the | ||||||
26 | procurement processes and procedures described in this Section |
| |||||||
| |||||||
1 | and Section 16-111.5 of the Public Utilities Act, to the | ||||||
2 | extent practicable, and these processes and procedures may be | ||||||
3 | expedited to accommodate the schedule established by this | ||||||
4 | Section. The Agency shall require all bidders to pay to the | ||||||
5 | Agency a nonrefundable deposit of $10,000 per bid. Bidders | ||||||
6 | shall also demonstrate experience developing commercial | ||||||
7 | readiness. The winning bidders shall comply with the | ||||||
8 | prevailing wage requirements in subparagraph (Q) of paragraph | ||||||
9 | (1) of subsection (c) of Section 1-75 and the equity | ||||||
10 | accountability system requirements in subsection (c-10) of | ||||||
11 | Section 1-75. As used in this subsection (d), "developing to | ||||||
12 | commercial readiness" means having notice to proceed, owning, | ||||||
13 | or operating energy facilities with a combined nameplate | ||||||
14 | capacity of at least 100 megawatts. | ||||||
15 | (e) No later than December 31, 2026, and every 2 years | ||||||
16 | thereafter, the Agency shall conduct an analysis to determine | ||||||
17 | whether the contracted quantity of energy storage in energy | ||||||
18 | storage capacity and energy storage duration is sufficient to | ||||||
19 | support the State's renewable energy standards and carbon | ||||||
20 | emission standards. To conduct the analysis, the Agency shall | ||||||
21 | retain an independent consultant with experience in wholesale | ||||||
22 | electric system modeling in PJM and MISO and may seek the | ||||||
23 | support of the United States Department of Energy and National | ||||||
24 | Labs to conduct its analysis. The independent consultant shall | ||||||
25 | use a production cost model, capacity expansion model, or | ||||||
26 | similar comprehensive analysis of the electricity systems and |
| |||||||
| |||||||
1 | shall provide opportunities for stakeholders to provide | ||||||
2 | feedback on the scope, inputs, and assumptions used in the | ||||||
3 | analysis. The Agency is authorized to collect costs for | ||||||
4 | conducting the analysis from electric utilities. The electric | ||||||
5 | utilities are authorized to recover the cost of the analysis | ||||||
6 | as part of the recovery of the cost of energy storage credits, | ||||||
7 | as authorized in this Section and Section 16-108 of the Public | ||||||
8 | Utilities Act. If the Agency determines that the need for | ||||||
9 | energy storage capacity or energy storage duration is greater | ||||||
10 | than the energy storage credit target in this Section, the | ||||||
11 | Agency shall establish, and the Commission shall approve, new | ||||||
12 | energy storage credit targets to meet the identified need. If | ||||||
13 | the Agency determines that deployment of energy storage beyond | ||||||
14 | 2030 will not be achieved through wholesale market prices and | ||||||
15 | other energy storage programs established by the State, the | ||||||
16 | Agency shall establish additional targets for years beyond | ||||||
17 | 2030. | ||||||
18 | (f) The Agency shall include in the long-term procurement | ||||||
19 | plan the energy storage duration of energy storage systems | ||||||
20 | from which the Agency shall procure energy storage credits. | ||||||
21 | Informed by the analysis described in subsection (e), when | ||||||
22 | available, the Agency shall designate the energy storage | ||||||
23 | duration or durations and the amount of energy storage | ||||||
24 | capacity at each duration from which the Agency intends to | ||||||
25 | procure energy storage credits. The long-term procurement plan | ||||||
26 | shall further propose allocation of procurements between |
| |||||||
| |||||||
1 | indexed credits and tolling agreements, taking into | ||||||
2 | consideration factors including timely commercial operation of | ||||||
3 | storage resources. | ||||||
4 | (g) The Agency shall identify in the long-term procurement | ||||||
5 | plan the regional transmission organization or independent | ||||||
6 | system operator to which energy storage systems shall be | ||||||
7 | interconnected in order to be eligible to offer a strike price | ||||||
8 | for energy storage credits. For all solicitations prior to the | ||||||
9 | delivery year 2028, the Agency shall strive to procure at | ||||||
10 | least 70% of energy storage credits from energy storage | ||||||
11 | systems interconnected to MISO, and at least 10% of energy | ||||||
12 | storage credits from energy storage systems located within a | ||||||
13 | city with population of more than 1,000,000 people and | ||||||
14 | interconnected to PJM Interconnection, LLC. For solicitations | ||||||
15 | in the delivery year 2028 and thereafter, and informed by the | ||||||
16 | analysis described in subsection (e), the Agency shall | ||||||
17 | designate the regional transmission organization or | ||||||
18 | independent system operator to which energy storage systems | ||||||
19 | shall be interconnected in order to be eligible to offer a | ||||||
20 | strike price for energy storage credits. Following | ||||||
21 | solicitation and receipt of feedback from stakeholders | ||||||
22 | including potential bidders, the Agency shall propose in the | ||||||
23 | long-term procurement plan key terms and conditions of the | ||||||
24 | standard contracts for indexed credit and tolling agreements. | ||||||
25 | The key terms shall be designed to ensure the agreements are | ||||||
26 | financeable and to incentivize development. |
| |||||||
| |||||||
1 | (h) The Agency shall procure cost-effective energy storage | ||||||
2 | credits in at least the amounts identified in subsection (a). | ||||||
3 | The procurement administrator shall establish confidential | ||||||
4 | price benchmarks based on publicly available data on regional | ||||||
5 | technology costs. Confidential benchmarks shall be developed | ||||||
6 | by the procurement administrator, in consultation with | ||||||
7 | Commission staff, Agency staff, and the procurement monitor, | ||||||
8 | and shall be subject to Commission review and approval. | ||||||
9 | Benchmarks shall reflect development, financing, and related | ||||||
10 | costs resulting from requirements imposed through other | ||||||
11 | provisions of State law. As used in this subsection (h), "cost | ||||||
12 | effective" means that the energy storage credit strike price | ||||||
13 | does not exceed confidential benchmarks. | ||||||
14 | (i) When developing each storage procurement plan, upon | ||||||
15 | solicitation from stakeholders, the Agency shall consider | ||||||
16 | additional procurement approaches that would result in the | ||||||
17 | electric utilities contracting for energy storage to achieve | ||||||
18 | the requirements in subsection (a). | ||||||
19 | (j) Storage energy credits procured under this Section | ||||||
20 | must be from energy storage systems built by general | ||||||
21 | contractors that enter into a project labor agreement prior to | ||||||
22 | construction. The project labor agreement shall be filed with | ||||||
23 | the Director in accordance with procedures established by the | ||||||
24 | Agency through its storage procurement plan. Any information | ||||||
25 | submitted to the Agency under this subsection shall be | ||||||
26 | considered commercially sensitive information. At a minimum, |
| |||||||
| |||||||
1 | the project labor agreement must provide the names, addresses, | ||||||
2 | and occupations of the owner of the plant and the individuals | ||||||
3 | representing the labor organization employees participating in | ||||||
4 | the project labor agreement in accordance with the Project | ||||||
5 | Labor Agreements Act. The agreement must also specify the | ||||||
6 | terms and conditions as described in this Act. | ||||||
7 | (k) In order to promote the competitive development of | ||||||
8 | energy storage system in furtherance of the State's interest | ||||||
9 | in the health, safety, and welfare of its residents, storage | ||||||
10 | credits shall not be eligible to be selected under this | ||||||
11 | Section if they are sourced from an energy storage system | ||||||
12 | whose costs were being recovered through rates regulated by | ||||||
13 | this State or any other state or states on or after January 1, | ||||||
14 | 2017. Each contract executed to purchase storage credits under | ||||||
15 | this Section shall provide for the contract's termination if | ||||||
16 | the costs of the energy storage system supplying the storage | ||||||
17 | credits subsequently begin to be recovered through rates | ||||||
18 | regulated by this State or any other state or states. Each | ||||||
19 | contract shall provide that, in the event the costs of the | ||||||
20 | energy storage system supplying the storage credits | ||||||
21 | subsequently begin to be recovered through rates regulated by | ||||||
22 | this State or any other state or states, the supplier of the | ||||||
23 | credits must return 110% of all payments received under the | ||||||
24 | contract. Amounts returned under the requirements of this | ||||||
25 | subsection shall be refunded to ratepayers. No entity shall be | ||||||
26 | permitted to bid unless it certifies to the Agency that it is |
| |||||||
| |||||||
1 | not an electric utility, as defined in Section 16-102 of the | ||||||
2 | Public Utilities Act, serving more than 10,000 customers in | ||||||
3 | the State. | ||||||
4 | (l) The Agency shall require that as a prerequisite to | ||||||
5 | payment for any storage credits that the winning bidder | ||||||
6 | provide the Agency or its designee a copy of the | ||||||
7 | interconnection agreement under which the applicable energy | ||||||
8 | storage system is connected to the transmission or | ||||||
9 | distribution system. | ||||||
10 | (m) To ensure the successful development of new energy | ||||||
11 | storage systems for procurements under this Section, a winning | ||||||
12 | bidder or the current seller under contract countersigned by | ||||||
13 | an electric utility counterparty may petition the Commission | ||||||
14 | to revise the terms in the contract. Prior to such petition, | ||||||
15 | upon request by the winning bidder or seller, the Agency shall | ||||||
16 | negotiate directly with the winning bidder or seller. If | ||||||
17 | following the direct negotiations, the Agency and the winning | ||||||
18 | bidder reach an agreement on amended terms or a strike price | ||||||
19 | and the Agency finds that the amended terms or strike price | ||||||
20 | reflect a change in circumstances since the date of the bid | ||||||
21 | based on circumstances unforeseeable at the time of the bid, | ||||||
22 | upon petition by the winning bidder or current seller, then | ||||||
23 | the Commission shall issue an order directing the utility | ||||||
24 | counterparty to execute a form amendment drafted by the Agency | ||||||
25 | with the revised terms or the strike price. The Agency shall | ||||||
26 | provide the amendment to the utility within 15 business days |
| |||||||
| |||||||
1 | after the Commission's order and the utility buyer shall | ||||||
2 | execute the amendment not more than 7 calendar days after | ||||||
3 | delivery by the Agency. The Agency shall develop the form | ||||||
4 | amendment following comment by interested parties.
| ||||||
5 | (20 ILCS 3855/1-94 new) | ||||||
6 | Sec. 1-94. Firm energy resource procurement plan. The | ||||||
7 | Agency is authorized to develop and implement a firm energy | ||||||
8 | resource procurement plan for new resources, including | ||||||
9 | initiating proceedings and conducting competitive | ||||||
10 | solicitations to deploy new long-duration and multi-day energy | ||||||
11 | storage. The procurement plan shall ensure regular procurement | ||||||
12 | opportunities to deploy new long-duration and multi-day energy | ||||||
13 | storage resources by 2030 and shall ensure stable, competitive | ||||||
14 | resource development at a pace needed to ensure grid | ||||||
15 | reliability and resilience during atypical or extreme grid | ||||||
16 | conditions that may occur at least once in 20 years while | ||||||
17 | meeting the emissions requirements of Section 9.15 of the | ||||||
18 | Environmental Protection Act. The Agency's plan shall ensure | ||||||
19 | that a minimum of 4 new long-duration or multi-day energy | ||||||
20 | storage resources, each with a rated capacity greater than 20 | ||||||
21 | megawatts, shall be deployed or contracted by the end of | ||||||
22 | delivery year 2026. Within one year after the effective date | ||||||
23 | of this amendatory Act of the 103rd General Assembly, the | ||||||
24 | Agency shall develop a firm energy resource procurement plan | ||||||
25 | in accordance with this Section and Section 16-111.5 of the |
| |||||||
| |||||||
1 | Public Utilities Act.
| ||||||
2 | Section 10. The Public Utilities Act is amended by | ||||||
3 | changing Sections 16-107.5, 16-107.6, 16-108, and 16-111.5 and | ||||||
4 | by adding Sections 8-513, 16-107.9, 16-107.10, and 16-107.11 | ||||||
5 | and Article XXIII as follows:
| ||||||
6 | (220 ILCS 5/8-513 new) | ||||||
7 | Sec. 8-513. Staffing adequacy. | ||||||
8 | (a) The General Assembly finds and declares that devotion | ||||||
9 | of adequate resources, including human resources and technical | ||||||
10 | resources, to interconnection of electric generation to the | ||||||
11 | electric distribution grid and transmission grid are necessary | ||||||
12 | to meeting the State's renewable energy goals, including the | ||||||
13 | goals set out in Section 1-75 of the Illinois Power Agency Act. | ||||||
14 | The General Assembly further finds that insufficient human | ||||||
15 | resources or inadequate systems, recordkeeping, or technical | ||||||
16 | ability to interconnection by electric utilities risks delays, | ||||||
17 | mistakes, and disputes under applicable interconnection | ||||||
18 | procedures. | ||||||
19 | (b) Each electric utility, as defined in Section 16-102, | ||||||
20 | shall demonstrate sufficient resources devoted to | ||||||
21 | interconnection. | ||||||
22 | (c) The Commission shall review in a contested proceeding | ||||||
23 | the compliance of each electric utility with the electric | ||||||
24 | utility's individual compliance with obligations under |
| |||||||
| |||||||
1 | subsection (b). If the Commission, after notice and hearing, | ||||||
2 | finds that an electric utility did not meet its obligations | ||||||
3 | under subsection (b), or is at risk of not meeting such | ||||||
4 | obligations in the future, the Commission may require the | ||||||
5 | electric utility to submit a compliance plan to meet such | ||||||
6 | obligations. The Commission shall approve or approve with | ||||||
7 | modifications a compliance plan if the Commission finds that | ||||||
8 | the compliance plan is likely to ensure compliance with the | ||||||
9 | electric utility's obligations under subsection (b), or likely | ||||||
10 | with modifications to ensure compliance. | ||||||
11 | (d) As used in this Section: | ||||||
12 | "Interconnection" means the steps to interconnect | ||||||
13 | electric generation fueled by renewable resources, energy | ||||||
14 | storage, or a combination of generation fueled by | ||||||
15 | renewable resources and storage under procedures set out | ||||||
16 | in this Act, rules adopted by the Commission, PJM | ||||||
17 | Interconnection, Inc. or its successor, or Midcontinent | ||||||
18 | Independent System Operator or its successor. | ||||||
19 | "Resources" means the combination of employees, | ||||||
20 | independent contractors, vendors, and systems and software | ||||||
21 | that directly support interconnection but shall not | ||||||
22 | include the transformers, reclosers, line, and similar | ||||||
23 | physical assets used to connect or upgrade the | ||||||
24 | distribution or transmission grids.
| ||||||
25 | (220 ILCS 5/16-107.5) |
| |||||||
| |||||||
1 | Sec. 16-107.5. Net electricity metering. | ||||||
2 | (a) The General Assembly finds and declares that a program | ||||||
3 | to provide net electricity metering, as defined in this | ||||||
4 | Section, for eligible customers can encourage private | ||||||
5 | investment in renewable energy resources, stimulate economic | ||||||
6 | growth, enhance the continued diversification of Illinois' | ||||||
7 | energy resource mix, and protect the Illinois environment. | ||||||
8 | Further, to achieve the goals of this Act that robust options | ||||||
9 | for customer-site distributed generation continue to thrive in | ||||||
10 | Illinois, the General Assembly finds that a predictable | ||||||
11 | transition must be ensured for customers between full net | ||||||
12 | metering at the retail electricity rate to the distribution | ||||||
13 | generation rebate described in Section 16-107.6. | ||||||
14 | (b) As used in this Section, (i) "community renewable | ||||||
15 | generation project" shall have the meaning set forth in | ||||||
16 | Section 1-10 of the Illinois Power Agency Act; (ii) "eligible | ||||||
17 | customer" means a retail customer that owns, hosts, or | ||||||
18 | operates, including any third-party owned systems, a solar, | ||||||
19 | wind, or other eligible renewable electrical generating | ||||||
20 | facility that is located on the customer's premises or | ||||||
21 | customer's side of the billing meter and is intended primarily | ||||||
22 | to offset the customer's own current or future electrical | ||||||
23 | requirements; (iii) "electricity provider" means an electric | ||||||
24 | utility or alternative retail electric supplier; (iv) | ||||||
25 | "eligible renewable electrical generating facility" means a | ||||||
26 | generator, which may include the co-location of an energy |
| |||||||
| |||||||
1 | storage system, that is interconnected under rules adopted by | ||||||
2 | the Commission and is powered by solar electric energy, wind, | ||||||
3 | dedicated crops grown for electricity generation, agricultural | ||||||
4 | residues, untreated and unadulterated wood waste, livestock | ||||||
5 | manure, anaerobic digestion of livestock or food processing | ||||||
6 | waste, fuel cells or microturbines powered by renewable fuels, | ||||||
7 | or hydroelectric energy; (v) "net electricity metering" (or | ||||||
8 | "net metering") means the measurement, during the billing | ||||||
9 | period applicable to an eligible customer, of the net amount | ||||||
10 | of electricity supplied by an electricity provider to the | ||||||
11 | customer or provided to the electricity provider by the | ||||||
12 | customer or subscriber; (vi) "subscriber" shall have the | ||||||
13 | meaning as set forth in Section 1-10 of the Illinois Power | ||||||
14 | Agency Act; (vii) "subscription" shall have the meaning set | ||||||
15 | forth in Section 1-10 of the Illinois Power Agency Act; (viii) | ||||||
16 | "energy storage system" means commercially available | ||||||
17 | technology that is capable of absorbing energy and storing it | ||||||
18 | for a period of time for use at a later time, including, but | ||||||
19 | not limited to, electrochemical, thermal, and | ||||||
20 | electromechanical technologies, and may be interconnected | ||||||
21 | behind the customer's meter or interconnected behind its own | ||||||
22 | meter; and (ix) "future electrical requirements" means modeled | ||||||
23 | electrical requirements upon occupation of a new or vacant | ||||||
24 | property, and other reasonable expectations of future | ||||||
25 | electrical use, as well as, for occupied properties, a | ||||||
26 | reasonable approximation of the annual load of 2 electric |
| |||||||
| |||||||
1 | vehicles and, for non-electric heating customers, a reasonable | ||||||
2 | approximation of the incremental electric load associated with | ||||||
3 | fuel switching. The approximations shall be applied to the | ||||||
4 | appropriate net metering tariff and do not need to be unique to | ||||||
5 | each individual eligible customer. The utility shall submit | ||||||
6 | these approximations to the Commission for review, | ||||||
7 | modification, and approval. | ||||||
8 | (c) A net metering facility shall be equipped with | ||||||
9 | metering equipment that can measure the flow of electricity in | ||||||
10 | both directions at the same rate. | ||||||
11 | (1) For eligible customers whose electric service has | ||||||
12 | not been declared competitive pursuant to Section 16-113 | ||||||
13 | of this Act as of July 1, 2011 and whose electric delivery | ||||||
14 | service is provided and measured on a kilowatt-hour basis | ||||||
15 | and electric supply service is not provided based on | ||||||
16 | hourly pricing, this shall typically be accomplished | ||||||
17 | through use of a single, bi-directional meter. If the | ||||||
18 | eligible customer's existing electric revenue meter does | ||||||
19 | not meet this requirement, the electricity provider shall | ||||||
20 | arrange for the local electric utility or a meter service | ||||||
21 | provider to install and maintain a new revenue meter at | ||||||
22 | the electricity provider's expense, which may be the smart | ||||||
23 | meter described by subsection (b) of Section 16-108.5 of | ||||||
24 | this Act. | ||||||
25 | (2) For eligible customers whose electric service has | ||||||
26 | not been declared competitive pursuant to Section 16-113 |
| |||||||
| |||||||
1 | of this Act as of July 1, 2011 and whose electric delivery | ||||||
2 | service is provided and measured on a kilowatt demand | ||||||
3 | basis and electric supply service is not provided based on | ||||||
4 | hourly pricing, this shall typically be accomplished | ||||||
5 | through use of a dual channel meter capable of measuring | ||||||
6 | the flow of electricity both into and out of the | ||||||
7 | customer's facility at the same rate and ratio. If such | ||||||
8 | customer's existing electric revenue meter does not meet | ||||||
9 | this requirement, then the electricity provider shall | ||||||
10 | arrange for the local electric utility or a meter service | ||||||
11 | provider to install and maintain a new revenue meter at | ||||||
12 | the electricity provider's expense, which may be the smart | ||||||
13 | meter described by subsection (b) of Section 16-108.5 of | ||||||
14 | this Act. | ||||||
15 | (3) For all other eligible customers, until such time | ||||||
16 | as the local electric utility installs a smart meter, as | ||||||
17 | described by subsection (b) of Section 16-108.5 of this | ||||||
18 | Act, the electricity provider may arrange for the local | ||||||
19 | electric utility or a meter service provider to install | ||||||
20 | and maintain metering equipment capable of measuring the | ||||||
21 | flow of electricity both into and out of the customer's | ||||||
22 | facility at the same rate and ratio, typically through the | ||||||
23 | use of a dual channel meter. If the eligible customer's | ||||||
24 | existing electric revenue meter does not meet this | ||||||
25 | requirement, then the costs of installing such equipment | ||||||
26 | shall be paid for by the customer. |
| |||||||
| |||||||
1 | (d) An electricity provider shall measure and charge or | ||||||
2 | credit for the net electricity supplied to eligible customers | ||||||
3 | or provided by eligible customers whose electric service has | ||||||
4 | not been declared competitive pursuant to Section 16-113 of | ||||||
5 | this Act as of July 1, 2011 and whose electric delivery service | ||||||
6 | is provided and measured on a kilowatt-hour basis and electric | ||||||
7 | supply service is not provided based on hourly pricing in the | ||||||
8 | following manner: | ||||||
9 | (1) If the amount of electricity used by the customer | ||||||
10 | during the billing period exceeds the amount of | ||||||
11 | electricity produced by the customer, the electricity | ||||||
12 | provider shall charge the customer for the net electricity | ||||||
13 | supplied to and used by the customer as provided in | ||||||
14 | subsection (e-5) of this Section. | ||||||
15 | (2) If the amount of electricity produced by a | ||||||
16 | customer during the billing period exceeds the amount of | ||||||
17 | electricity used by the customer during that billing | ||||||
18 | period, the electricity provider supplying that customer | ||||||
19 | shall apply a 1:1 kilowatt-hour credit to a subsequent | ||||||
20 | bill for service to the customer for the net electricity | ||||||
21 | supplied to the electricity provider. The electricity | ||||||
22 | provider shall continue to carry over any excess | ||||||
23 | kilowatt-hour credits earned and apply those credits to | ||||||
24 | subsequent billing periods to offset any | ||||||
25 | customer-generator consumption in those billing periods | ||||||
26 | until all credits are used or until the end of the |
| |||||||
| |||||||
1 | annualized period. | ||||||
2 | (3) At the end of the year or annualized over the | ||||||
3 | period that service is supplied by means of net metering, | ||||||
4 | or in the event that the retail customer terminates | ||||||
5 | service with the electricity provider prior to the end of | ||||||
6 | the year or the annualized period, any remaining credits | ||||||
7 | in the customer's account shall expire. | ||||||
8 | (d-5) An electricity provider shall measure and charge or | ||||||
9 | credit for the net electricity supplied to eligible customers | ||||||
10 | or provided by eligible customers whose electric service has | ||||||
11 | not been declared competitive pursuant to Section 16-113 of | ||||||
12 | this Act as of July 1, 2011 and whose electric delivery service | ||||||
13 | is provided and measured on a kilowatt-hour basis and electric | ||||||
14 | supply service is provided based on hourly pricing or | ||||||
15 | time-of-use rates in the following manner: | ||||||
16 | (1) If the amount of electricity used by the customer | ||||||
17 | during any hourly period or time-of-use period exceeds the | ||||||
18 | amount of electricity produced by the customer, the | ||||||
19 | electricity provider shall charge the customer for the net | ||||||
20 | electricity supplied to and used by the customer according | ||||||
21 | to the terms of the contract or tariff to which the same | ||||||
22 | customer would be assigned to or be eligible for if the | ||||||
23 | customer was not a net metering customer. | ||||||
24 | (2) If the amount of electricity produced by a | ||||||
25 | customer during any hourly period or time-of-use period | ||||||
26 | exceeds the amount of electricity used by the customer |
| |||||||
| |||||||
1 | during that hourly period or time-of-use period, the | ||||||
2 | energy provider shall apply a credit for the net | ||||||
3 | kilowatt-hours produced in such period. The credit shall | ||||||
4 | consist of an energy credit and a delivery service credit. | ||||||
5 | The energy credit shall be valued at the same price per | ||||||
6 | kilowatt-hour as the electric service provider would | ||||||
7 | charge for kilowatt-hour energy sales during that same | ||||||
8 | hourly period or time-of-use period. The delivery credit | ||||||
9 | shall be equal to the net kilowatt-hours produced in such | ||||||
10 | hourly period or time-of-use period times a credit that | ||||||
11 | reflects all kilowatt-hour based charges in the customer's | ||||||
12 | electric service rate, excluding energy charges. | ||||||
13 | (e) An electricity provider shall measure and charge or | ||||||
14 | credit for the net electricity supplied to eligible customers | ||||||
15 | whose electric service has not been declared competitive | ||||||
16 | pursuant to Section 16-113 of this Act as of July 1, 2011 and | ||||||
17 | whose electric delivery service is provided and measured on a | ||||||
18 | kilowatt demand basis and electric supply service is not | ||||||
19 | provided based on hourly pricing in the following manner: | ||||||
20 | (1) If the amount of electricity used by the customer | ||||||
21 | during the billing period exceeds the amount of | ||||||
22 | electricity produced by the customer, then the electricity | ||||||
23 | provider shall charge the customer for the net electricity | ||||||
24 | supplied to and used by the customer as provided in | ||||||
25 | subsection (e-5) of this Section. The customer shall | ||||||
26 | remain responsible for all taxes, fees, and utility |
| |||||||
| |||||||
1 | delivery charges that would otherwise be applicable to the | ||||||
2 | net amount of electricity used by the customer. | ||||||
3 | (2) If the amount of electricity produced by a | ||||||
4 | customer during the billing period exceeds the amount of | ||||||
5 | electricity used by the customer during that billing | ||||||
6 | period, then the electricity provider supplying that | ||||||
7 | customer shall apply a 1:1 kilowatt-hour credit that | ||||||
8 | reflects the kilowatt-hour based charges in the customer's | ||||||
9 | electric service rate to a subsequent bill for service to | ||||||
10 | the customer for the net electricity supplied to the | ||||||
11 | electricity provider. The electricity provider shall | ||||||
12 | continue to carry over any excess kilowatt-hour credits | ||||||
13 | earned and apply those credits to subsequent billing | ||||||
14 | periods to offset any customer-generator consumption in | ||||||
15 | those billing periods until all credits are used or until | ||||||
16 | the end of the annualized period. | ||||||
17 | (3) At the end of the year or annualized over the | ||||||
18 | period that service is supplied by means of net metering, | ||||||
19 | or in the event that the retail customer terminates | ||||||
20 | service with the electricity provider prior to the end of | ||||||
21 | the year or the annualized period, any remaining credits | ||||||
22 | in the customer's account shall expire. | ||||||
23 | (e-5) An electricity provider shall provide electric | ||||||
24 | service to eligible customers who utilize net metering at | ||||||
25 | non-discriminatory rates that are identical, with respect to | ||||||
26 | rate structure, retail rate components, and any monthly |
| |||||||
| |||||||
1 | charges, to the rates that the customer would be charged if not | ||||||
2 | a net metering customer. An electricity provider shall not | ||||||
3 | charge net metering customers any fee or charge or require | ||||||
4 | additional equipment, insurance, or any other requirements not | ||||||
5 | specifically authorized by interconnection standards | ||||||
6 | authorized by the Commission, unless the fee, charge, or other | ||||||
7 | requirement would apply to other similarly situated customers | ||||||
8 | who are not net metering customers. The customer will remain | ||||||
9 | responsible for all taxes, fees, and utility delivery charges | ||||||
10 | that would otherwise be applicable to the net amount of | ||||||
11 | electricity used by the customer. Subsections (c) through (e) | ||||||
12 | of this Section shall not be construed to prevent an | ||||||
13 | arms-length agreement between an electricity provider and an | ||||||
14 | eligible customer that sets forth different prices, terms, and | ||||||
15 | conditions for the provision of net metering service, | ||||||
16 | including, but not limited to, the provision of the | ||||||
17 | appropriate metering equipment for non-residential customers. | ||||||
18 | (f) Notwithstanding the requirements of subsections (c) | ||||||
19 | through (e-5) of this Section, an electricity provider must | ||||||
20 | require dual-channel metering for customers operating eligible | ||||||
21 | renewable electrical generating facilities to whom the | ||||||
22 | provisions of neither subsection (d), (d-5), nor (e) of this | ||||||
23 | Section apply. In such cases, electricity charges and credits | ||||||
24 | shall be determined as follows: | ||||||
25 | (1) The electricity provider shall assess and the | ||||||
26 | customer remains responsible for all taxes, fees, and |
| |||||||
| |||||||
1 | utility delivery charges that would otherwise be | ||||||
2 | applicable to the gross amount of kilowatt-hours supplied | ||||||
3 | to the eligible customer by the electricity provider. | ||||||
4 | (2) Each month that service is supplied by means of | ||||||
5 | dual-channel metering, the electricity provider shall | ||||||
6 | compensate the eligible customer for any excess | ||||||
7 | kilowatt-hour credits at the electricity provider's | ||||||
8 | avoided cost of electricity supply over the monthly period | ||||||
9 | or as otherwise specified by the terms of a power-purchase | ||||||
10 | agreement negotiated between the customer and electricity | ||||||
11 | provider. | ||||||
12 | (3) For all eligible net metering customers taking | ||||||
13 | service from an electricity provider under contracts or | ||||||
14 | tariffs employing hourly or time-of-use rates, any monthly | ||||||
15 | consumption of electricity shall be calculated according | ||||||
16 | to the terms of the contract or tariff to which the same | ||||||
17 | customer would be assigned to or be eligible for if the | ||||||
18 | customer was not a net metering customer. When those same | ||||||
19 | customer-generators are net generators during any discrete | ||||||
20 | hourly or time-of-use period, the net kilowatt-hours | ||||||
21 | produced shall be valued at the same price per | ||||||
22 | kilowatt-hour as the electric service provider would | ||||||
23 | charge for retail kilowatt-hour sales during that same | ||||||
24 | time-of-use period. | ||||||
25 | (g) For purposes of federal and State laws providing | ||||||
26 | renewable energy credits or greenhouse gas credits, the |
| |||||||
| |||||||
1 | eligible customer shall be treated as owning and having title | ||||||
2 | to the renewable energy attributes, renewable energy credits, | ||||||
3 | and greenhouse gas emission credits related to any electricity | ||||||
4 | produced by the qualified generating unit. The electricity | ||||||
5 | provider may not condition participation in a net metering | ||||||
6 | program on the signing over of a customer's renewable energy | ||||||
7 | credits; provided, however, this subsection (g) shall not be | ||||||
8 | construed to prevent an arms-length agreement between an | ||||||
9 | electricity provider and an eligible customer that sets forth | ||||||
10 | the ownership or title of the credits. | ||||||
11 | (h) Within 120 days after the effective date of this | ||||||
12 | amendatory Act of the 95th General Assembly, the Commission | ||||||
13 | shall establish standards for net metering and, if the | ||||||
14 | Commission has not already acted on its own initiative, | ||||||
15 | standards for the interconnection of eligible renewable | ||||||
16 | generating equipment to the utility system. The | ||||||
17 | interconnection standards shall address any procedural | ||||||
18 | barriers, delays, and administrative costs associated with the | ||||||
19 | interconnection of customer-generation while ensuring the | ||||||
20 | safety and reliability of the units and the electric utility | ||||||
21 | system. The Commission shall consider the Institute of | ||||||
22 | Electrical and Electronics Engineers (IEEE) Standard 1547 and | ||||||
23 | the issues of (i) reasonable and fair fees and costs, (ii) | ||||||
24 | clear timelines for major milestones in the interconnection | ||||||
25 | process, (iii) nondiscriminatory terms of agreement, and (iv) | ||||||
26 | any best practices for interconnection of distributed |
| |||||||
| |||||||
1 | generation. | ||||||
2 | (h-5) Within 90 days after the effective date of this | ||||||
3 | amendatory Act of the 103rd General Assembly amendatory Act of | ||||||
4 | the 102nd General Assembly , the Commission shall: | ||||||
5 | (1) establish an Interconnection Working Group. The | ||||||
6 | working group shall include representatives from electric | ||||||
7 | utilities, developers of renewable electric generating | ||||||
8 | facilities, other industries that regularly apply for | ||||||
9 | interconnection with the electric utilities, | ||||||
10 | representatives of distributed generation customers, the | ||||||
11 | Commission Staff, and such other stakeholders with a | ||||||
12 | substantial interest in the topics addressed by the | ||||||
13 | Interconnection Working Group. The Interconnection Working | ||||||
14 | Group shall address at least the following issues: | ||||||
15 | (A) cost and best available technology for | ||||||
16 | interconnection and metering, including the | ||||||
17 | standardization and publication of standard costs; | ||||||
18 | (B) transparency, accuracy and use of the | ||||||
19 | distribution interconnection queue and hosting | ||||||
20 | capacity maps; | ||||||
21 | (C) distribution system upgrade cost avoidance | ||||||
22 | through use of advanced inverter functions; | ||||||
23 | (D) predictability of the queue management process | ||||||
24 | and enforcement of timelines; | ||||||
25 | (E) benefits and challenges associated with group | ||||||
26 | studies and cost sharing; |
| |||||||
| |||||||
1 | (F) minimum requirements for application to the | ||||||
2 | interconnection process and throughout the | ||||||
3 | interconnection process to avoid queue clogging | ||||||
4 | behavior; | ||||||
5 | (G) process and customer service for | ||||||
6 | interconnecting customers adopting distributed energy | ||||||
7 | resources, including energy storage; | ||||||
8 | (H) options for metering distributed energy | ||||||
9 | resources, including energy storage; | ||||||
10 | (I) interconnection of new technologies, including | ||||||
11 | smart inverters and energy storage; | ||||||
12 | (J) collect, share, and examine data on Level 1 | ||||||
13 | interconnection costs, including cost and type of | ||||||
14 | upgrades required for interconnection, and use this | ||||||
15 | data to inform the final standardized cost of Level 1 | ||||||
16 | interconnection; and | ||||||
17 | (K) such other technical, policy, and tariff | ||||||
18 | issues related to and affecting interconnection | ||||||
19 | performance and customer service as determined by the | ||||||
20 | Interconnection Working Group. | ||||||
21 | The Commission may create subcommittees of the | ||||||
22 | Interconnection Working Group to focus on specific issues | ||||||
23 | of importance, as appropriate. The Ombudsman, on behalf of | ||||||
24 | the Interconnection Working Group , shall report to the | ||||||
25 | Commission on recommended improvements to interconnection | ||||||
26 | rules and tariffs and policies as determined by the |
| |||||||
| |||||||
1 | Interconnection Working Group at least every 6 months. | ||||||
2 | Such reports shall include consensus recommendations of | ||||||
3 | the Interconnection Working Group and, if applicable, | ||||||
4 | additional recommendations for which consensus was not | ||||||
5 | reached. The Commission shall use the report from the | ||||||
6 | Interconnection Working Group to determine whether | ||||||
7 | processes should be commenced to formally codify or | ||||||
8 | implement the recommendations; | ||||||
9 | (2) designate the Ombudsperson described in Section | ||||||
10 | 23-110, or his or her designee within the Office of | ||||||
11 | Interconnection and Renewable Development, to act as the | ||||||
12 | facilitator for the Interconnection Working Group for the | ||||||
13 | purpose of resolving create or contract for an Ombudsman | ||||||
14 | to resolve interconnection disputes through mediation or | ||||||
15 | non-binding arbitration , to the extent mediation or | ||||||
16 | non-binding arbitration is available under rules adopted | ||||||
17 | by the Commission. As the facilitator for the | ||||||
18 | Interconnection Working Group, the Ombudsperson shall | ||||||
19 | convene stakeholders to set agendas for discussions, lead | ||||||
20 | meetings, ensure notes are distributed to members, and | ||||||
21 | perform other tasks necessary to support the good-faith | ||||||
22 | advancement of discussions . The Ombudsperson Ombudsman may | ||||||
23 | be paid in full or in part through fees levied on the | ||||||
24 | initiators of the dispute; and | ||||||
25 | (3) determine a single standardized cost for Level 1 | ||||||
26 | interconnections, which shall not exceed $200 ; . |
| |||||||
| |||||||
1 | (4) require all electric utilities to perform a system | ||||||
2 | impact and facilities study to provide a detailed | ||||||
3 | breakdown of the non-binding costs of operation and an | ||||||
4 | estimate that individually itemizes operational costs, | ||||||
5 | including equipment by type or model, labor, operation and | ||||||
6 | maintenance, engineering and design, permitting, easements | ||||||
7 | and rights-of-way, direct overhead, and indirect overhead; | ||||||
8 | (5) prohibit electric utilities from recovering from | ||||||
9 | an interconnection customer more than 125% of the | ||||||
10 | non-binding cost estimate in the system impact and | ||||||
11 | facilities study described in paragraph (4). An electric | ||||||
12 | utility with a Multi-Year Rate Plan may recover prudent | ||||||
13 | and reasonable costs of interconnection that are not | ||||||
14 | recoverable from the interconnection customer under this | ||||||
15 | paragraph from all customers through its Multi-Year Rate | ||||||
16 | Plan; | ||||||
17 | (6) open a proceeding, not to exceed 240 days in | ||||||
18 | duration, to create a uniform standard for cost-sharing of | ||||||
19 | interconnections. As used in this paragraph, "cost-sharing | ||||||
20 | of interconnections" means a system under which an | ||||||
21 | electric utility assigns the costs of upgrades to a | ||||||
22 | distribution-voltage substation that exceeds $5,000,000 | ||||||
23 | between the interconnection customer that initially causes | ||||||
24 | the upgrade and interconnection customers subsequent in | ||||||
25 | the interconnection queue, not to exceed 10 customers, | ||||||
26 | that directly benefit from the increased hosting capacity |
| |||||||
| |||||||
1 | from the upgrade, including applicants that subsequently | ||||||
2 | enter the queue; | ||||||
3 | (7) adopt rules, in addition to dispute resolution | ||||||
4 | provisions under the Commission's rules authorized by | ||||||
5 | subsection (h), as long as, upon complaint by an electric | ||||||
6 | utility, an interconnection customer, or an | ||||||
7 | interconnection applicant, the Ombudsperson, or his or her | ||||||
8 | designee, provides a recommended resolution of any dispute | ||||||
9 | within 5 business days after receiving the complaint. The | ||||||
10 | electric utility, the interconnection customer, the | ||||||
11 | interconnection applicant, or any other party authorized | ||||||
12 | to initiate dispute resolution under the Commission's | ||||||
13 | rules authorized by subsection (h) may include the | ||||||
14 | Ombudsperson's recommendation in any dispute resolution. | ||||||
15 | Nothing in this paragraph prohibits the Ombudsperson from | ||||||
16 | taking part in a dispute as required by this Section or the | ||||||
17 | Commission's rules; | ||||||
18 | (8) require each electric utility to offer flexible | ||||||
19 | interconnection. An interconnection applicant may propose | ||||||
20 | flexible interconnection options and an electric utility | ||||||
21 | shall not unreasonably deny the proposal. If curtailment | ||||||
22 | is expected under the flexible interconnection option, the | ||||||
23 | electric utility shall provide an analysis of the expected | ||||||
24 | rate of curtailment, inclusive of calculations, as well as | ||||||
25 | load, generation, contingency, and system limit | ||||||
26 | assumptions used. Each study of interconnection costs with |
| |||||||
| |||||||
1 | a cost exceeding $0.30 per watt shall include an | ||||||
2 | evaluation of flexible interconnection options. As used in | ||||||
3 | this paragraph, "flexible interconnection" means active or | ||||||
4 | passive hardware, software, or other controls allowing | ||||||
5 | curtailment of distributed energy resources during grid | ||||||
6 | conditions that might otherwise impact safety or | ||||||
7 | reliability of the distribution system; | ||||||
8 | (9) prohibit any electric utility from requiring a | ||||||
9 | deposit for construction of interconnection facilities or | ||||||
10 | distribution upgrades of greater than $1,000,000 and | ||||||
11 | making a payment of more than 25% of the amount before 20 | ||||||
12 | business days before the engineering, procurement, and | ||||||
13 | construction of the interconnection facilities or | ||||||
14 | distribution upgrades; | ||||||
15 | (10) require all electric utilities, in studying | ||||||
16 | potential interconnection of distributed energy resources, | ||||||
17 | to present a proposed scope of upgrades and non-binding | ||||||
18 | cost estimate for the native feeder as well as the | ||||||
19 | non-binding cost estimate and scope of upgrades for any | ||||||
20 | other feeders proposed by the utility if different. The | ||||||
21 | interconnection customer shall be entitled to choose | ||||||
22 | between the 2 or more options presented by the electric | ||||||
23 | utility. In addition, the electric utility shall present a | ||||||
24 | separate proposed scope and non-binding cost estimate for | ||||||
25 | exceeding any distributed energy resource capacity limits | ||||||
26 | imposed by the electric utility; |
| |||||||
| |||||||
1 | (11) prohibit the electric utility from conditioning | ||||||
2 | study of an interconnection application on study, deposit, | ||||||
3 | or approval of any other distributed energy resource ahead | ||||||
4 | in queue, however nothing prohibits an electric utility | ||||||
5 | from identifying contingent upgrades for applicants lower | ||||||
6 | in queue. In such case, the electric utility shall | ||||||
7 | identify the projects ahead of the applicant in the queue | ||||||
8 | to the applicant or interconnection customer; | ||||||
9 | (12) require facilities study, as defined under the | ||||||
10 | Commission's rules adopted pursuant to subsection (h), to | ||||||
11 | include analysis of required easements, including the pin | ||||||
12 | number of each parcel on which customer-acquired easements | ||||||
13 | are needed. The electric utility shall allow use of the | ||||||
14 | electric utility's easements for interconnection | ||||||
15 | facilities and distribution upgrades, including | ||||||
16 | interconnection facilities and distribution upgrades | ||||||
17 | constructed by the applicant, interconnection customer, or | ||||||
18 | a third party on their behalf; | ||||||
19 | (13) require each electric utility to provide guidance | ||||||
20 | to applicants lower in queue on how contingent upgrade | ||||||
21 | costs will flow through the interconnection queue, | ||||||
22 | inclusive of the order of projects on which those upgrades | ||||||
23 | will fall, the allowable timelines for the electric | ||||||
24 | distribution utilities to notify the next project | ||||||
25 | following the withdrawal of the responsible project, and | ||||||
26 | establishing timelines for projects on which these |
| |||||||
| |||||||
1 | contingent upgrades fall to either pay the additional | ||||||
2 | deposit amount or withdraw their project; | ||||||
3 | (14) require each utility to maintain a public queue | ||||||
4 | with project-specific information including nameplate | ||||||
5 | capacity, energy storage nameplate capacity, if any, | ||||||
6 | contingent upgrades, if any, and estimated non-binding | ||||||
7 | interconnection cost provided by the electric utility to | ||||||
8 | the applicant or interconnection customer. The Commission | ||||||
9 | may require additional information be provided under this | ||||||
10 | paragraph; and | ||||||
11 | (15) require each electric utility serving more than | ||||||
12 | 100,000 customers on January 1, 2023, to the extent not | ||||||
13 | provided in its multi-year grid plan, to submit to the | ||||||
14 | Commission a plan to implement public dynamic hosting | ||||||
15 | capacity maps not later than January 1, 2026. For the | ||||||
16 | purposes of this paragraph, "dynamic hosting capacity | ||||||
17 | maps" means publicly-facing hosting capacity maps that are | ||||||
18 | updated in real time or not less frequently than daily, | ||||||
19 | based on information received or provided by the electric | ||||||
20 | utility. | ||||||
21 | (i) All electricity providers shall begin to offer net | ||||||
22 | metering no later than April 1, 2008. | ||||||
23 | (j) An electricity provider shall provide net metering to | ||||||
24 | eligible customers according to subsections (d), (d-5), and | ||||||
25 | (e). Eligible renewable electrical generating facilities for | ||||||
26 | which eligible customers registered for net metering before |
| |||||||
| |||||||
1 | January 1, 2025 shall continue to receive net metering | ||||||
2 | services according to subsections (d), (d-5), and (e) of this | ||||||
3 | Section for the lifetime of the system, regardless of whether | ||||||
4 | those retail customers change electricity providers or whether | ||||||
5 | the retail customer benefiting from the system changes. On and | ||||||
6 | after January 1, 2025, any eligible customer that applies for | ||||||
7 | net metering and previously would have qualified under | ||||||
8 | subsections (d), (d-5), or (e) shall only be eligible for net | ||||||
9 | metering as described in subsection (n). | ||||||
10 | (k) Each electricity provider shall maintain records and | ||||||
11 | report annually to the Commission the total number of net | ||||||
12 | metering customers served by the provider, as well as the | ||||||
13 | type, capacity, and energy sources of the generating systems | ||||||
14 | used by the net metering customers. Nothing in this Section | ||||||
15 | shall limit the ability of an electricity provider to request | ||||||
16 | the redaction of information deemed by the Commission to be | ||||||
17 | confidential business information. | ||||||
18 | (l)(1) Notwithstanding the definition of "eligible | ||||||
19 | customer" in item (ii) of subsection (b) of this Section, each | ||||||
20 | electricity provider shall allow net metering as set forth in | ||||||
21 | this subsection (l) and for the following projects, provided | ||||||
22 | that only electric utilities serving more than 200,000 | ||||||
23 | customers as of January 1, 2021 shall provide net metering for | ||||||
24 | projects that are eligible for subparagraph (C) of this | ||||||
25 | paragraph (1) and have energized after the effective date of | ||||||
26 | this amendatory Act of the 102nd General Assembly: |
| |||||||
| |||||||
1 | (A) properties owned or leased by multiple customers | ||||||
2 | that contribute to the operation of an eligible renewable | ||||||
3 | electrical generating facility through an ownership or | ||||||
4 | leasehold interest of at least 200 watts in such facility, | ||||||
5 | such as a community-owned wind project, a community-owned | ||||||
6 | biomass project, a community-owned solar project, or a | ||||||
7 | community methane digester processing livestock waste from | ||||||
8 | multiple sources, provided that the facility is also | ||||||
9 | located within the utility's service territory; | ||||||
10 | (B) individual units, apartments, or properties | ||||||
11 | located in a single building that are owned or leased by | ||||||
12 | multiple customers and collectively served by a common | ||||||
13 | eligible renewable electrical generating facility, such as | ||||||
14 | an office or apartment building, a shopping center or | ||||||
15 | strip mall served by photovoltaic panels on the roof; and | ||||||
16 | (C) subscriptions to community renewable generation | ||||||
17 | projects, including community renewable generation | ||||||
18 | projects on the customer's side of the billing meter of a | ||||||
19 | host facility and partially used for the customer's own | ||||||
20 | load. | ||||||
21 | In addition, the nameplate capacity of the eligible | ||||||
22 | renewable electric generating facility that serves the demand | ||||||
23 | of the properties, units, or apartments identified in | ||||||
24 | paragraphs (1) and (2) of this subsection (l) shall not exceed | ||||||
25 | 5,000 kilowatts in nameplate capacity in total. Any eligible | ||||||
26 | renewable electrical generating facility or community |
| |||||||
| |||||||
1 | renewable generation project that is powered by photovoltaic | ||||||
2 | electric energy and installed after the effective date of this | ||||||
3 | amendatory Act of the 99th General Assembly must be installed | ||||||
4 | by a qualified person in compliance with the requirements of | ||||||
5 | Section 16-128A of the Public Utilities Act and any rules or | ||||||
6 | regulations adopted thereunder. | ||||||
7 | (2) Notwithstanding anything to the contrary, an | ||||||
8 | electricity provider shall provide credits for the electricity | ||||||
9 | produced by the projects described in paragraph (1) of this | ||||||
10 | subsection (l). The electricity provider shall provide credits | ||||||
11 | that include at least energy supply, capacity, transmission, | ||||||
12 | and, if applicable, the purchased energy adjustment on the | ||||||
13 | subscriber's monthly bill equal to the subscriber's share of | ||||||
14 | the production of electricity from the project, as determined | ||||||
15 | by paragraph (3) of this subsection (l). For customers with | ||||||
16 | transmission or capacity charges not charged on a | ||||||
17 | kilowatt-hour basis, the electricity provider shall prepare a | ||||||
18 | reasonable approximation of the kilowatt-hour equivalent value | ||||||
19 | and provide that value as a monetary credit. The electricity | ||||||
20 | provider shall submit these approximation methodologies to the | ||||||
21 | Commission for review, modification, and approval. | ||||||
22 | Notwithstanding anything to the contrary, customers on payment | ||||||
23 | plans or participating in budget billing programs shall have | ||||||
24 | credits applied on a monthly basis. | ||||||
25 | (3) Notwithstanding anything to the contrary and | ||||||
26 | regardless of whether a subscriber to an eligible community |
| |||||||
| |||||||
1 | renewable generation project receives power and energy service | ||||||
2 | from the electric utility or an alternative retail electric | ||||||
3 | supplier, for projects eligible under paragraph (C) of | ||||||
4 | subparagraph (1) of this subsection (l), electric utilities | ||||||
5 | serving more than 200,000 customers as of January 1, 2021 | ||||||
6 | shall provide the monetary credits to a subscriber's | ||||||
7 | subsequent bill for the electricity produced by community | ||||||
8 | renewable generation projects. The electric utility shall | ||||||
9 | provide monetary credits to a subscriber's subsequent bill at | ||||||
10 | the utility's total price to compare equal to the subscriber's | ||||||
11 | share of the production of electricity from the project, as | ||||||
12 | determined by paragraph (5) of this subsection (l). For the | ||||||
13 | purposes of this subsection, "total price to compare" means | ||||||
14 | the rate or rates published by the Illinois Commerce | ||||||
15 | Commission for energy supply for eligible customers receiving | ||||||
16 | supply service from the electric utility, and shall include | ||||||
17 | energy, capacity, transmission, and the purchased energy | ||||||
18 | adjustment. Notwithstanding anything to the contrary, | ||||||
19 | customers on payment plans or participating in budget billing | ||||||
20 | programs shall have credits applied on a monthly basis. Any | ||||||
21 | applicable credit or reduction in load obligation from the | ||||||
22 | production of the community renewable generating projects | ||||||
23 | receiving a credit under this subsection shall be credited to | ||||||
24 | the electric utility to offset the cost of providing the | ||||||
25 | credit. To the extent that the credit or load obligation | ||||||
26 | reduction does not completely offset the cost of providing the |
| |||||||
| |||||||
1 | credit to subscribers of community renewable generation | ||||||
2 | projects as described in this subsection, the electric utility | ||||||
3 | may recover the remaining costs through its Multi-Year Rate | ||||||
4 | Plan. All electric utilities serving 200,000 or fewer | ||||||
5 | customers as of January 1, 2021 shall only provide the | ||||||
6 | monetary credits to a subscriber's subsequent bill for the | ||||||
7 | electricity produced by community renewable generation | ||||||
8 | projects if the subscriber receives power and energy service | ||||||
9 | from the electric utility. Alternative retail electric | ||||||
10 | suppliers providing power and energy service to a subscriber | ||||||
11 | located within the service territory of an electric utility | ||||||
12 | not subject to Sections 16-108.18 and 16-118 shall provide the | ||||||
13 | monetary credits to the subscriber's subsequent bill for the | ||||||
14 | electricity produced by community renewable generation | ||||||
15 | projects. | ||||||
16 | (4) If requested by the owner or operator of a community | ||||||
17 | renewable generating project, an electric utility serving more | ||||||
18 | than 200,000 customers as of January 1, 2021 shall enter into a | ||||||
19 | net crediting agreement with the owner or operator to include | ||||||
20 | a subscriber's subscription fee on the subscriber's monthly | ||||||
21 | electric bill and provide the subscriber with a net credit | ||||||
22 | equivalent to the total bill credit value for that generation | ||||||
23 | period minus the subscription fee, provided the subscription | ||||||
24 | fee is structured as a fixed percentage of bill credit value. | ||||||
25 | The net crediting agreement shall set forth payment terms from | ||||||
26 | the electric utility to the owner or operator of the community |
| |||||||
| |||||||
1 | renewable generating project, and the electric utility may | ||||||
2 | charge a net crediting fee to the owner or operator of a | ||||||
3 | community renewable generating project that may not exceed 1% | ||||||
4 | 2% of the subscription fee bill credit value . Notwithstanding | ||||||
5 | anything to the contrary, an electric utility serving 200,000 | ||||||
6 | customers or fewer as of January 1, 2021 shall not be obligated | ||||||
7 | to enter into a net crediting agreement with the owner or | ||||||
8 | operator of a community renewable generating project. For the | ||||||
9 | purposes of this paragraph (4), "net crediting" means a | ||||||
10 | program offered by an electric utility under which the | ||||||
11 | electric utility, upon authorization by or on behalf of a | ||||||
12 | subscriber, remits the cash value of the subscription fee to | ||||||
13 | the owner or operator of the community renewable generation | ||||||
14 | facility, without regard to whether or not the subscriber has | ||||||
15 | paid the subscriber's monthly electric bill, and places the | ||||||
16 | cash value of the remaining bill credit on the subscriber's | ||||||
17 | bill. The utility shall use the same net crediting format for | ||||||
18 | subscribers on payment plans or participating in budget | ||||||
19 | billing programs. | ||||||
20 | (5) For the purposes of facilitating net metering, the | ||||||
21 | owner or operator of the eligible renewable electrical | ||||||
22 | generating facility or community renewable generation project | ||||||
23 | shall be responsible for determining the amount of the credit | ||||||
24 | that each customer or subscriber participating in a project | ||||||
25 | under this subsection (l) is to receive in the following | ||||||
26 | manner: |
| |||||||
| |||||||
1 | (A) The owner or operator shall, on a monthly basis, | ||||||
2 | provide to the electric utility the kilowatthours of | ||||||
3 | generation attributable to each of the utility's retail | ||||||
4 | customers and subscribers participating in projects under | ||||||
5 | this subsection (l) in accordance with the customer's or | ||||||
6 | subscriber's share of the eligible renewable electric | ||||||
7 | generating facility's or community renewable generation | ||||||
8 | project's output of power and energy for such month. The | ||||||
9 | owner or operator shall electronically transmit such | ||||||
10 | calculations and associated documentation to the electric | ||||||
11 | utility, in a format or method set forth in the applicable | ||||||
12 | tariff, on a monthly basis so that the electric utility | ||||||
13 | can reflect the monetary credits on customers' and | ||||||
14 | subscribers' electric utility bills. The electric utility | ||||||
15 | shall be permitted to revise its tariffs to implement the | ||||||
16 | provisions of this amendatory Act of the 102nd General | ||||||
17 | Assembly. The owner or operator shall separately provide | ||||||
18 | the electric utility with the documentation detailing the | ||||||
19 | calculations supporting the credit in the manner set forth | ||||||
20 | in the applicable tariff. | ||||||
21 | (B) For those participating customers and subscribers | ||||||
22 | who receive their energy supply from an alternative retail | ||||||
23 | electric supplier, the electric utility shall remit to the | ||||||
24 | applicable alternative retail electric supplier the | ||||||
25 | information provided under subparagraph (A) of this | ||||||
26 | paragraph (3) for such customers and subscribers in a |
| |||||||
| |||||||
1 | manner set forth in such alternative retail electric | ||||||
2 | supplier's net metering program, or as otherwise agreed | ||||||
3 | between the utility and the alternative retail electric | ||||||
4 | supplier. The alternative retail electric supplier shall | ||||||
5 | then submit to the utility the amount of the charges for | ||||||
6 | power and energy to be applied to such customers and | ||||||
7 | subscribers, including the amount of the credit associated | ||||||
8 | with net metering. | ||||||
9 | (C) A participating customer or subscriber may provide | ||||||
10 | authorization as required by applicable law that directs | ||||||
11 | the electric utility to submit information to the owner or | ||||||
12 | operator of the eligible renewable electrical generating | ||||||
13 | facility or community renewable generation project to | ||||||
14 | which the customer or subscriber has an ownership or | ||||||
15 | leasehold interest or a subscription. Such information | ||||||
16 | shall be limited to the components of the net metering | ||||||
17 | credit calculated under this subsection (l), including the | ||||||
18 | bill credit rate, total kilowatthours, and total monetary | ||||||
19 | credit value applied to the customer's or subscriber's | ||||||
20 | bill for the monthly billing period. | ||||||
21 | (l-5) Within 90 days after the effective date of this | ||||||
22 | amendatory Act of the 102nd General Assembly, each electric | ||||||
23 | utility subject to this Section shall file a tariff or tariffs | ||||||
24 | to implement the provisions of subsection (l) of this Section, | ||||||
25 | which shall, consistent with the provisions of subsection (l), | ||||||
26 | describe the terms and conditions under which owners or |
| |||||||
| |||||||
1 | operators of qualifying properties, units, or apartments may | ||||||
2 | participate in net metering. The Commission shall approve, or | ||||||
3 | approve with modification, the tariff within 120 days after | ||||||
4 | the effective date of this amendatory Act of the 102nd General | ||||||
5 | Assembly. | ||||||
6 | (m) Nothing in this Section shall affect the right of an | ||||||
7 | electricity provider to continue to provide, or the right of a | ||||||
8 | retail customer to continue to receive service pursuant to a | ||||||
9 | contract for electric service between the electricity provider | ||||||
10 | and the retail customer in accordance with the prices, terms, | ||||||
11 | and conditions provided for in that contract. Either the | ||||||
12 | electricity provider or the customer may require compliance | ||||||
13 | with the prices, terms, and conditions of the contract. | ||||||
14 | (n) On and after January 1, 2025, the net metering | ||||||
15 | services described in subsections (d), (d-5), and (e) of this | ||||||
16 | Section shall no longer be offered, except as to those | ||||||
17 | eligible renewable electrical generating facilities for which | ||||||
18 | retail customers are receiving net metering service under | ||||||
19 | these subsections at the time the net metering services under | ||||||
20 | those subsections are no longer offered; those systems shall | ||||||
21 | continue to receive net metering services described in | ||||||
22 | subsections (d), (d-5), and (e) of this Section for the | ||||||
23 | lifetime of the system, regardless of if those retail | ||||||
24 | customers change electricity providers or whether the retail | ||||||
25 | customer benefiting from the system changes. The electric | ||||||
26 | utility serving more than 200,000 customers as of January 1, |
| |||||||
| |||||||
1 | 2021 is responsible for ensuring the billing credits continue | ||||||
2 | without lapse for the lifetime of systems, as required in | ||||||
3 | subsection (o). Those retail customers that begin taking net | ||||||
4 | metering service after the date that net metering services are | ||||||
5 | no longer offered under such subsections shall be subject to | ||||||
6 | the provisions set forth in the following paragraphs (1) | ||||||
7 | through (3) of this subsection (n): | ||||||
8 | (1) An electricity provider shall charge or credit for | ||||||
9 | the net electricity supplied to eligible customers or | ||||||
10 | provided by eligible customers whose electric supply | ||||||
11 | service is not provided based on hourly pricing in the | ||||||
12 | following manner: | ||||||
13 | (A) If the amount of electricity used by the | ||||||
14 | customer during the monthly billing period exceeds the | ||||||
15 | amount of electricity produced by the customer, then | ||||||
16 | the electricity provider shall charge the customer for | ||||||
17 | the net kilowatt-hour based electricity charges | ||||||
18 | reflected in the customer's electric service rate | ||||||
19 | supplied to and used by the customer as provided in | ||||||
20 | paragraph (3) of this subsection (n). | ||||||
21 | (B) If the amount of electricity produced by a | ||||||
22 | customer during the monthly billing period exceeds the | ||||||
23 | amount of electricity used by the customer during that | ||||||
24 | billing period, then the electricity provider | ||||||
25 | supplying that customer shall apply a 1:1 | ||||||
26 | kilowatt-hour energy or monetary credit kilowatt-hour |
| |||||||
| |||||||
1 | supply charges to the customer's subsequent bill. The | ||||||
2 | customer shall choose between 1:1 kilowatt-hour or | ||||||
3 | monetary credit at the time of application. For the | ||||||
4 | purposes of this subsection, "kilowatt-hour supply | ||||||
5 | charges" means the kilowatt-hour equivalent values for | ||||||
6 | energy, capacity, transmission, and the purchased | ||||||
7 | energy adjustment, if applicable. Notwithstanding | ||||||
8 | anything to the contrary, customers on payment plans | ||||||
9 | or participating in budget billing programs shall have | ||||||
10 | credits applied on a monthly basis. The electricity | ||||||
11 | provider shall continue to carry over any excess | ||||||
12 | kilowatt-hour or monetary energy credits earned and | ||||||
13 | apply those credits to subsequent billing periods. For | ||||||
14 | customers with transmission or capacity charges not | ||||||
15 | charged on a kilowatt-hour basis, the electricity | ||||||
16 | provider shall prepare a reasonable approximation of | ||||||
17 | the kilowatt-hour equivalent value and provide that | ||||||
18 | value as a monetary credit. The electricity provider | ||||||
19 | shall submit these approximation methodologies to the | ||||||
20 | Commission for review, modification, and approval. | ||||||
21 | (C) (Blank). | ||||||
22 | (2) An electricity provider shall charge or credit for | ||||||
23 | the net electricity supplied to eligible customers or | ||||||
24 | provided by eligible customers whose electric supply | ||||||
25 | service is provided based on hourly pricing in the | ||||||
26 | following manner: |
| |||||||
| |||||||
1 | (A) If the amount of electricity used by the | ||||||
2 | customer during any hourly period exceeds the amount | ||||||
3 | of electricity produced by the customer, then the | ||||||
4 | electricity provider shall charge the customer for the | ||||||
5 | net electricity supplied to and used by the customer | ||||||
6 | as provided in paragraph (3) of this subsection (n). | ||||||
7 | (B) If the amount of electricity produced by a | ||||||
8 | customer during any hourly period exceeds the amount | ||||||
9 | of electricity used by the customer during that hourly | ||||||
10 | period, the energy provider shall calculate an energy | ||||||
11 | credit for the net kilowatt-hours produced in such | ||||||
12 | period, and shall apply that credit as a monetary | ||||||
13 | credit to the customer's subsequent bill. The value of | ||||||
14 | the energy credit shall be calculated using the same | ||||||
15 | price per kilowatt-hour as the electric service | ||||||
16 | provider would charge for kilowatt-hour energy sales | ||||||
17 | during that same hourly period and shall also include | ||||||
18 | values for capacity and transmission. For customers | ||||||
19 | with transmission or capacity charges not charged on a | ||||||
20 | kilowatt-hour basis, the electricity provider shall | ||||||
21 | prepare a reasonable approximation of the | ||||||
22 | kilowatt-hour equivalent value and provide that value | ||||||
23 | as a monetary credit. The electricity provider shall | ||||||
24 | submit these approximation methodologies to the | ||||||
25 | Commission for review, modification, and approval. | ||||||
26 | Notwithstanding anything to the contrary, customers on |
| |||||||
| |||||||
1 | payment plans or participating in budget billing | ||||||
2 | programs shall have credits applied on a monthly | ||||||
3 | basis. | ||||||
4 | (3) An electricity provider shall provide electric | ||||||
5 | service to eligible customers who utilize net metering at | ||||||
6 | non-discriminatory rates that are identical, with respect | ||||||
7 | to rate structure, retail rate components, and any monthly | ||||||
8 | charges, to the rates that the customer would be charged | ||||||
9 | if not a net metering customer. An electricity provider | ||||||
10 | shall charge the customer for the net electricity supplied | ||||||
11 | to and used by the customer according to the terms of the | ||||||
12 | contract or tariff to which the same customer would be | ||||||
13 | assigned or be eligible for if the customer was not a net | ||||||
14 | metering customer. An electricity provider shall not | ||||||
15 | charge net metering customers any fee or charge or require | ||||||
16 | additional equipment, insurance, or any other requirements | ||||||
17 | not specifically authorized by interconnection standards | ||||||
18 | authorized by the Commission, unless the fee, charge, or | ||||||
19 | other requirement would apply to other similarly situated | ||||||
20 | customers who are not net metering customers. The customer | ||||||
21 | remains responsible for the gross amount of delivery | ||||||
22 | services charges, supply-related charges that are kilowatt | ||||||
23 | based, and all taxes and fees related to such charges. The | ||||||
24 | customer also remains responsible for all taxes and fees | ||||||
25 | that would otherwise be applicable to the net amount of | ||||||
26 | electricity used by the customer. Paragraphs (1) and (2) |
| |||||||
| |||||||
1 | of this subsection (n) shall not be construed to prevent | ||||||
2 | an arms-length agreement between an electricity provider | ||||||
3 | and an eligible customer that sets forth different prices, | ||||||
4 | terms, and conditions for the provision of net metering | ||||||
5 | service, including, but not limited to, the provision of | ||||||
6 | the appropriate metering equipment for non-residential | ||||||
7 | customers. Nothing in this paragraph (3) shall be | ||||||
8 | interpreted to mandate that a utility that is only | ||||||
9 | required to provide delivery services to a given customer | ||||||
10 | must also sell electricity to such customer. | ||||||
11 | (o) Within 90 days after the effective date of this | ||||||
12 | amendatory Act of the 102nd General Assembly, each electric | ||||||
13 | utility subject to this Section shall file a tariff, which | ||||||
14 | shall, consistent with the provisions of this Section, propose | ||||||
15 | the terms and conditions under which a customer may | ||||||
16 | participate in net metering. The tariff for electric utilities | ||||||
17 | serving more than 200,000 customers as of January 1, 2021 | ||||||
18 | shall also provide a streamlined and transparent bill | ||||||
19 | crediting system for net metering to be managed by the | ||||||
20 | electric utilities. The terms and conditions shall include, | ||||||
21 | but are not limited to, that an electric utility shall manage | ||||||
22 | and maintain billing of net metering credits and charges | ||||||
23 | regardless of if the eligible customer takes net metering | ||||||
24 | under an electric utility or alternative retail electric | ||||||
25 | supplier. The electric utility serving more than 200,000 | ||||||
26 | customers as of January 1, 2021 shall process and approve all |
| |||||||
| |||||||
1 | net metering applications, even if an eligible customer is | ||||||
2 | served by an alternative retail electric supplier; and the | ||||||
3 | utility shall forward application approval to the appropriate | ||||||
4 | alternative retail electric supplier. Eligibility for net | ||||||
5 | metering shall remain with the owner of the utility billing | ||||||
6 | address such that, if an eligible renewable electrical | ||||||
7 | generating facility changes ownership, the net metering | ||||||
8 | eligibility transfers to the new owner. The electric utility | ||||||
9 | serving more than 200,000 customers as of January 1, 2021 | ||||||
10 | shall manage net metering billing for eligible customers to | ||||||
11 | ensure full crediting occurs on electricity bills, including, | ||||||
12 | but not limited to, ensuring net metering crediting begins | ||||||
13 | upon commercial operation date, net metering billing transfers | ||||||
14 | immediately if an eligible customer switches from an electric | ||||||
15 | utility to alternative retail electric supplier or vice versa, | ||||||
16 | and net metering billing transfers between ownership of a | ||||||
17 | valid billing address. All transfers referenced in the | ||||||
18 | preceding sentence shall include transfer of all banked | ||||||
19 | credits. All electric utilities serving 200,000 or fewer | ||||||
20 | customers as of January 1, 2021 shall manage net metering | ||||||
21 | billing for eligible customers receiving power and energy | ||||||
22 | service from the electric utility to ensure full crediting | ||||||
23 | occurs on electricity bills, ensuring net metering crediting | ||||||
24 | begins upon commercial operation date, net metering billing | ||||||
25 | transfers immediately if an eligible customer switches from an | ||||||
26 | electric utility to alternative retail electric supplier or |
| |||||||
| |||||||
1 | vice versa, and net metering billing transfers between | ||||||
2 | ownership of a valid billing address. Alternative retail | ||||||
3 | electric suppliers providing power and energy service to | ||||||
4 | eligible customers located within the service territory of an | ||||||
5 | electric utility serving 200,000 or fewer customers as of | ||||||
6 | January 1, 2021 shall manage net metering billing for eligible | ||||||
7 | customers to ensure full crediting occurs on electricity | ||||||
8 | bills, including, but not limited to, ensuring net metering | ||||||
9 | crediting begins upon commercial operation date, net metering | ||||||
10 | billing transfers immediately if an eligible customer switches | ||||||
11 | from an electric utility to alternative retail electric | ||||||
12 | supplier or vice versa, and net metering billing transfers | ||||||
13 | between ownership of a valid billing address. | ||||||
14 | (Source: P.A. 102-662, eff. 9-15-21.)
| ||||||
15 | (220 ILCS 5/16-107.6) | ||||||
16 | Sec. 16-107.6. Distributed generation rebate. | ||||||
17 | (a) In this Section: | ||||||
18 | "Additive services" means the services that distributed | ||||||
19 | energy resources provide to the energy system and society that | ||||||
20 | are not (1) already included in the base rebates for | ||||||
21 | system-wide grid services; or (2) otherwise already | ||||||
22 | compensated. Additive services may reflect, but shall not be | ||||||
23 | limited to, any geographic, time-based, performance-based, and | ||||||
24 | other benefits of distributed energy resources, as well as the | ||||||
25 | present and future technological capabilities of distributed |
| |||||||
| |||||||
1 | energy resources and present and future grid needs. | ||||||
2 | "Distributed energy resource" means a wide range of | ||||||
3 | technologies that are located on the customer side of the | ||||||
4 | customer's electric meter, including, but not limited to, | ||||||
5 | distributed generation, energy storage, electric vehicles, and | ||||||
6 | demand response technologies. | ||||||
7 | "Energy storage system" means commercially available | ||||||
8 | technology that is capable of absorbing energy and storing it | ||||||
9 | for a period of time for use at a later time, including, but | ||||||
10 | not limited to, electrochemical, thermal, and | ||||||
11 | electromechanical technologies, and may be interconnected | ||||||
12 | behind the customer's meter or interconnected behind its own | ||||||
13 | meter. | ||||||
14 | "Smart inverter" means a device that converts direct | ||||||
15 | current into alternating current and meets the IEEE 1547-2018 | ||||||
16 | equipment standards. Until devices that meet the IEEE | ||||||
17 | 1547-2018 standard are available, devices that meet the UL | ||||||
18 | 1741 SA standard are acceptable. | ||||||
19 | "Subscriber" has the meaning set forth in Section 1-10 of | ||||||
20 | the Illinois Power Agency Act. | ||||||
21 | "Subscription" has the meaning set forth in Section 1-10 | ||||||
22 | of the Illinois Power Agency Act. | ||||||
23 | "System-wide grid services" means the benefits that a | ||||||
24 | distributed energy resource provides to the distribution grid | ||||||
25 | for a period of no less than 25 years. System-wide grid | ||||||
26 | services do not vary by location, time, or the performance |
| |||||||
| |||||||
1 | characteristics of the distributed energy resource. | ||||||
2 | System-wide grid services include, but are not limited to, | ||||||
3 | avoided or deferred distribution capacity costs, resilience | ||||||
4 | and reliability benefits, avoided or deferred distribution | ||||||
5 | operation and maintenance costs, distribution voltage and | ||||||
6 | power quality benefits, and line loss reductions. | ||||||
7 | "Threshold date" means December 31, 2024 or the date on | ||||||
8 | which the utility's tariff or tariffs setting the new | ||||||
9 | compensation values established under subsection (e) take | ||||||
10 | effect, whichever is later. | ||||||
11 | (b) An electric utility that serves more than 200,000 | ||||||
12 | customers in the State shall file a petition with the | ||||||
13 | Commission requesting approval of the utility's tariff to | ||||||
14 | provide a rebate to the owner or operator of distributed | ||||||
15 | generation, including third-party owned systems, that meets | ||||||
16 | the following criteria: | ||||||
17 | (1) has a nameplate generating capacity no greater | ||||||
18 | than 5,000 kilowatts and is primarily used to offset a | ||||||
19 | customer's electricity load; | ||||||
20 | (2) is located on the customer's side of the billing | ||||||
21 | meter and for the customer's own use; | ||||||
22 | (3) is interconnected to electric distribution | ||||||
23 | facilities owned by the electric utility under rules | ||||||
24 | adopted by the Commission by means of the inverter or | ||||||
25 | smart inverter required by this Section, as applicable. | ||||||
26 | For purposes of this Section, "distributed generation" |
| |||||||
| |||||||
1 | shall satisfy the definition of distributed renewable energy | ||||||
2 | generation device set forth in Section 1-10 of the Illinois | ||||||
3 | Power Agency Act to the extent such definition is consistent | ||||||
4 | with the requirements of this Section. | ||||||
5 | In addition, any new photovoltaic distributed generation | ||||||
6 | that is installed after June 1, 2017 (the effective date of | ||||||
7 | Public Act 99-906) must be installed by a qualified person, as | ||||||
8 | defined by subsection (i) of Section 1-56 of the Illinois | ||||||
9 | Power Agency Act. | ||||||
10 | The tariff shall include a base rebate that compensates | ||||||
11 | distributed generation for the system-wide grid services | ||||||
12 | associated with distributed generation and, after the | ||||||
13 | proceeding described in subsection (e) of this Section, an | ||||||
14 | additional payment or payments for the additive services. The | ||||||
15 | tariff shall provide that the smart inverter associated with | ||||||
16 | the distributed generation shall provide autonomous response | ||||||
17 | to grid conditions through its default settings as approved by | ||||||
18 | the Commission. Default settings may not be changed after the | ||||||
19 | execution of the interconnection agreement except by mutual | ||||||
20 | agreement between the utility and the owner or operator of the | ||||||
21 | distributed generation. Nothing in this Section shall negate | ||||||
22 | or supersede Institute of Electrical and Electronics Engineers | ||||||
23 | equipment standards or other similar standards or | ||||||
24 | requirements. The tariff shall not limit the ability of the | ||||||
25 | smart inverter or other distributed energy resource to provide | ||||||
26 | wholesale market products such as regulation, demand response, |
| |||||||
| |||||||
1 | or other services, or limit the ability of the owner of the | ||||||
2 | smart inverter or the other distributed energy resource to | ||||||
3 | receive compensation for providing those wholesale market | ||||||
4 | products or services. | ||||||
5 | (b-5) Within 30 days after the effective date of this | ||||||
6 | amendatory Act of the 102nd General Assembly, each electric | ||||||
7 | public utility with 3,000,000 or more retail customers shall | ||||||
8 | file a tariff with the Commission that further compensates any | ||||||
9 | retail customer that installs or has installed photovoltaic | ||||||
10 | facilities paired with energy storage facilities on or | ||||||
11 | adjacent to its premises for the benefits the facilities | ||||||
12 | provide to the distribution grid. The tariff shall provide | ||||||
13 | that, in addition to the other rebates identified in this | ||||||
14 | Section, the electric utility shall rebate to such retail | ||||||
15 | customer (i) the previously incurred and future costs of | ||||||
16 | installing interconnection facilities and related | ||||||
17 | infrastructure to enable full participation in the PJM | ||||||
18 | Interconnection, LLC or its successor organization frequency | ||||||
19 | regulation market; and (ii) all wholesale demand charges | ||||||
20 | incurred after the effective date of this amendatory Act of | ||||||
21 | the 102nd General Assembly. The Commission shall approve, or | ||||||
22 | approve with modification, the tariff within 120 days after | ||||||
23 | the utility's filing. | ||||||
24 | (c) The proposed tariff authorized by subsection (b) of | ||||||
25 | this Section shall include the following participation terms | ||||||
26 | for rebates to be applied under this Section for distributed |
| |||||||
| |||||||
1 | generation that satisfies the criteria set forth in subsection | ||||||
2 | (b) of this Section: | ||||||
3 | (1) The owner or operator of distributed generation | ||||||
4 | that services customers not eligible for net metering | ||||||
5 | under subsection (d), (d-5), or (e) of Section 16-107.5 of | ||||||
6 | this Act may apply for a rebate as provided for in this | ||||||
7 | Section. Until the threshold date, the value of the rebate | ||||||
8 | shall be $250 per kilowatt of nameplate generating | ||||||
9 | capacity, measured as nominal DC power output, of that | ||||||
10 | customer's distributed generation. To the extent the | ||||||
11 | distributed generation also has an associated energy | ||||||
12 | storage, then the energy storage system shall be | ||||||
13 | separately compensated with a base rebate of $250 per | ||||||
14 | kilowatt-hour of nameplate capacity. Any distributed | ||||||
15 | generation device that is compensated for storage in this | ||||||
16 | subsection (1) before the threshold date shall participate | ||||||
17 | in one or more programs determined through the Multi-Year | ||||||
18 | Integrated Grid Planning process that are designed to meet | ||||||
19 | peak reduction and flexibility , the virtual power plant | ||||||
20 | program described in Section 16-107.9, or the peak | ||||||
21 | remediation program described in Section 16-107.10 . After | ||||||
22 | the threshold date, the value of the base rebate and | ||||||
23 | additional compensation for any additive services shall be | ||||||
24 | as determined by the Commission in the proceeding | ||||||
25 | described in subsection (e) of this Section, provided that | ||||||
26 | the value of the base rebate for system-wide grid services |
| |||||||
| |||||||
1 | shall not be lower than $250 per kilowatt of nameplate | ||||||
2 | generating capacity of distributed generation or community | ||||||
3 | renewable generation project. | ||||||
4 | (2) The owner or operator of distributed generation | ||||||
5 | that, before the threshold date, would have been eligible | ||||||
6 | for net metering under subsection (d), (d-5), or (e) of | ||||||
7 | Section 16-107.5 of this Act and that has not previously | ||||||
8 | received a distributed generation rebate, may apply for a | ||||||
9 | rebate as provided for in this Section. Until the | ||||||
10 | threshold date, the value of the base rebate shall be $300 | ||||||
11 | per kilowatt of nameplate generating capacity, measured as | ||||||
12 | nominal DC power output, of the distributed generation. | ||||||
13 | The owner or operator of distributed generation that, | ||||||
14 | before the threshold date, is eligible for net metering | ||||||
15 | under subsection (d), (d-5), or (e) of Section 16-107.5 of | ||||||
16 | this Act may apply for a base rebate for an energy storage | ||||||
17 | device that uses the same smart inverter as the | ||||||
18 | distributed generation, regardless of whether the | ||||||
19 | distributed generation applies for a rebate for the | ||||||
20 | distributed generation device. The energy storage system | ||||||
21 | shall be separately compensated at a base payment of $300 | ||||||
22 | per kilowatt-hour of nameplate capacity. Any distributed | ||||||
23 | generation device that is compensated for storage in this | ||||||
24 | subsection (2) before the threshold date shall participate | ||||||
25 | in the virtual power plant program described in Section | ||||||
26 | 16-107.9, or at least one demand response a peak time |
| |||||||
| |||||||
1 | rebate program, hourly pricing program, or time-of-use | ||||||
2 | rate program that is offered by the applicable electric | ||||||
3 | utility , an alternative retail electric supplier, or an | ||||||
4 | entity qualified to offer demand response that is not an | ||||||
5 | alternative retail electric supplier . After the threshold | ||||||
6 | date, the value of the base rebate and additional | ||||||
7 | compensation for any additive services shall be as | ||||||
8 | determined by the Commission in the proceeding described | ||||||
9 | in subsection (e) of this Section, provided that, prior to | ||||||
10 | December 31, 2029, the value of the base rebate for | ||||||
11 | system-wide services shall not be lower than $300 per | ||||||
12 | kilowatt of nameplate generating capacity of distributed | ||||||
13 | generation, after which it shall not be lower than $250 | ||||||
14 | per kilowatt of nameplate capacity. | ||||||
15 | (3) Upon approval of a rebate application submitted | ||||||
16 | under this subsection (c), the retail customer shall no | ||||||
17 | longer be entitled to receive any delivery service credits | ||||||
18 | for the excess electricity generated by its facility and | ||||||
19 | shall be subject to the provisions of subsection (n) of | ||||||
20 | Section 16-107.5 of this Act unless the owner or operator | ||||||
21 | receives a rebate only for an energy storage device and | ||||||
22 | not for the distributed generation device. | ||||||
23 | (4) To be eligible for a rebate described in this | ||||||
24 | subsection (c), the owner or operator of the distributed | ||||||
25 | generation must have a smart inverter installed and in | ||||||
26 | operation on the distributed generation. |
| |||||||
| |||||||
1 | (d) The Commission shall review the proposed tariff | ||||||
2 | authorized by subsection (b) of this Section and may make | ||||||
3 | changes to the tariff that are consistent with this Section | ||||||
4 | and with the Commission's authority under Article IX of this | ||||||
5 | Act, subject to notice and hearing. Following notice and | ||||||
6 | hearing, the Commission shall issue an order approving, or | ||||||
7 | approving with modification, such tariff no later than 240 | ||||||
8 | days after the utility files its tariff. Upon the effective | ||||||
9 | date of this amendatory Act of the 102nd General Assembly, an | ||||||
10 | electric utility shall file a petition with the Commission to | ||||||
11 | amend and update any existing tariffs to comply with | ||||||
12 | subsections (b) and (c). | ||||||
13 | (e) By no later than June 30, 2023, the Commission shall | ||||||
14 | open an independent, statewide investigation into the value | ||||||
15 | of, and compensation for, distributed energy resources. The | ||||||
16 | Commission shall conduct the investigation, but may arrange | ||||||
17 | for experts or consultants independent of the utilities and | ||||||
18 | selected by the Commission to assist with the investigation. | ||||||
19 | The cost of the investigation shall be shared by the utilities | ||||||
20 | filing tariffs under subsection (b) of this Section but may be | ||||||
21 | recovered as an expense through normal ratemaking procedures. | ||||||
22 | (1) The Commission shall ensure that the investigation | ||||||
23 | includes, at minimum, diverse sets of stakeholders; a | ||||||
24 | review of best practices in calculating the value of | ||||||
25 | distributed energy resource benefits; a review of the full | ||||||
26 | value of the distributed energy resources and the manner |
| |||||||
| |||||||
1 | in which each component of that value is or is not | ||||||
2 | otherwise compensated; and assessments of how the value of | ||||||
3 | distributed energy resources may evolve based on the | ||||||
4 | present and future technological capabilities of | ||||||
5 | distributed energy resources and based on present and | ||||||
6 | future grid needs. | ||||||
7 | (2) The Commission's final order concluding this | ||||||
8 | investigation shall establish an annual process and | ||||||
9 | formula for the compensation of distributed generation and | ||||||
10 | energy storage systems, and an initial set of inputs for | ||||||
11 | that formula. The Commission's final order concluding this | ||||||
12 | investigation shall establish base rebates that compensate | ||||||
13 | distributed generation, community renewable generation | ||||||
14 | projects and energy storage systems for the system-wide | ||||||
15 | grid services that they provide. Those base rebate values | ||||||
16 | shall be consistent across the state, and shall not vary | ||||||
17 | by customer, customer class, customer location, or any | ||||||
18 | other variable. With respect to rebates for distributed | ||||||
19 | generation or community renewable generation projects, | ||||||
20 | that rebate shall not be lower than $250 per kilowatt of | ||||||
21 | nameplate generating capacity of the distributed | ||||||
22 | generation or community renewable generation project. The | ||||||
23 | Commission's final order concluding this proceeding shall | ||||||
24 | also direct the utilities to update the formula, on an | ||||||
25 | annual basis, with inputs derived from their integrated | ||||||
26 | grid plans developed pursuant to Section 16-105.17. The |
| |||||||
| |||||||
1 | base rebate shall be updated annually based on the annual | ||||||
2 | updates to the formula inputs, but, with respect to | ||||||
3 | rebates for distributed generation or community renewable | ||||||
4 | generation projects, shall be no lower than $250 per | ||||||
5 | kilowatt of nameplate generating capacity of the | ||||||
6 | distributed generation or community renewable generation | ||||||
7 | project. | ||||||
8 | (3) The Commission shall also determine, as a part of | ||||||
9 | its investigation under this subsection, whether | ||||||
10 | distributed energy resources can provide any additive | ||||||
11 | services. Those additive services may include services | ||||||
12 | that are provided through utility-controlled responses to | ||||||
13 | grid conditions. If the Commission determines that | ||||||
14 | distributed energy resources can provide additive grid | ||||||
15 | services, the Commission shall determine the terms and | ||||||
16 | conditions for the operation and compensation of those | ||||||
17 | services. That compensation shall be above and beyond the | ||||||
18 | base rebate that the distributed energy generation, | ||||||
19 | community renewable generation project and energy storage | ||||||
20 | system receives. Compensation for additive services may | ||||||
21 | vary by location, time, performance characteristics, | ||||||
22 | technology types, or other variables. | ||||||
23 | (4) The Commission shall ensure that compensation for | ||||||
24 | distributed energy resources, including base rebates and | ||||||
25 | any payments for additive services, shall reflect all | ||||||
26 | reasonably known and measurable values of the distributed |
| |||||||
| |||||||
1 | generation over its full expected useful life. | ||||||
2 | Compensation for additive services shall reflect, but | ||||||
3 | shall not be limited to, any geographic, time-based, | ||||||
4 | performance-based, and other benefits of distributed | ||||||
5 | generation, as well as the present and future | ||||||
6 | technological capabilities of distributed energy resources | ||||||
7 | and present and future grid needs. | ||||||
8 | (5) The Commission shall consider the electric | ||||||
9 | utility's integrated grid plan developed pursuant to | ||||||
10 | Section 16-105.17 of this Act to help identify the value | ||||||
11 | of distributed energy resources for the purpose of | ||||||
12 | calculating the compensation described in this subsection. | ||||||
13 | (6) The Commission shall determine additional | ||||||
14 | compensation for distributed energy resources that creates | ||||||
15 | savings and value on the distribution system by being | ||||||
16 | co-located or in close proximity to electric vehicle | ||||||
17 | charging infrastructure in use by medium-duty and | ||||||
18 | heavy-duty vehicles, primarily serving environmental | ||||||
19 | justice communities, as outlined in the utility integrated | ||||||
20 | grid planning process under Section 16-105.17 of this Act. | ||||||
21 | No later than 60 days after the Commission enters its | ||||||
22 | final order under this subsection (e), each utility shall file | ||||||
23 | its updated tariff or tariffs in compliance with the order, | ||||||
24 | including new tariffs for the recovery of costs incurred under | ||||||
25 | this subsection (e) that shall provide for volumetric-based | ||||||
26 | cost recovery, and the Commission shall approve, or approve |
| |||||||
| |||||||
1 | with modification, the tariff or tariffs within 240 days after | ||||||
2 | the utility's filing. | ||||||
3 | (f) Notwithstanding any provision of this Act to the | ||||||
4 | contrary, the owner or operator of a community renewable | ||||||
5 | generation project as defined in Section 1-10 of the Illinois | ||||||
6 | Power Agency Act shall also be eligible to apply for the rebate | ||||||
7 | described in this Section. The owner or operator of the | ||||||
8 | community renewable generation project may apply for a rebate | ||||||
9 | only if the owner or operator, or previous owner or operator, | ||||||
10 | of the community renewable generation project has not already | ||||||
11 | submitted an application, and, regardless of whether the | ||||||
12 | subscriber is a residential or non-residential customer, may | ||||||
13 | be allowed the amount identified in paragraph (1) of | ||||||
14 | subsection (c) applicable on the date that the application is | ||||||
15 | submitted. | ||||||
16 | (g) The owner of the distributed generation or community | ||||||
17 | renewable generation project may apply for the rebate or | ||||||
18 | rebates approved under this Section at the time of execution | ||||||
19 | of an interconnection agreement with the distribution utility | ||||||
20 | and shall receive the value available at that time of | ||||||
21 | execution of the interconnection agreement, provided the | ||||||
22 | project reaches mechanical completion within 24 months after | ||||||
23 | execution of the interconnection agreement. If the project has | ||||||
24 | not reached mechanical completion within 24 months after | ||||||
25 | execution, the owner may reapply for the rebate or rebates | ||||||
26 | approved under this Section available at the time of |
| |||||||
| |||||||
1 | application and shall receive the value available at the time | ||||||
2 | of application. The utility shall issue the rebate no later | ||||||
3 | than 60 days after the project is energized. In the event the | ||||||
4 | application is incomplete or the utility is otherwise unable | ||||||
5 | to calculate the payment based on the information provided by | ||||||
6 | the owner, the utility shall issue the payment no later than 60 | ||||||
7 | days after the application is complete or all requested | ||||||
8 | information is received. | ||||||
9 | (h) An electric utility shall recover from its retail | ||||||
10 | customers all of the costs of the rebates made under a tariff | ||||||
11 | or tariffs approved under subsection (d) of this Section, | ||||||
12 | including, but not limited to, the value of the rebates and all | ||||||
13 | costs incurred by the utility to comply with and implement | ||||||
14 | subsections (b) and (c) of this Section, but not including | ||||||
15 | costs incurred by the utility to comply with and implement | ||||||
16 | subsection (e) of this Section, consistent with the following | ||||||
17 | provisions: | ||||||
18 | (1) The utility shall defer the full amount of its | ||||||
19 | costs as a regulatory asset. The total costs deferred as a | ||||||
20 | regulatory asset shall be amortized over a 15-year period. | ||||||
21 | The unamortized balance shall be recognized as of December | ||||||
22 | 31 for a given year. The utility shall also earn a return | ||||||
23 | on the total of the unamortized balance of the regulatory | ||||||
24 | assets, less any deferred taxes related to the unamortized | ||||||
25 | balance, at an annual rate equal to the utility's weighted | ||||||
26 | average cost of capital that includes, based on a year-end |
| |||||||
| |||||||
1 | capital structure, the utility's actual cost of debt for | ||||||
2 | the applicable calendar year and a cost of equity, which | ||||||
3 | shall be calculated as the sum of (i) the average for the | ||||||
4 | applicable calendar year of the monthly average yields of | ||||||
5 | 30-year U.S. Treasury bonds published by the Board of | ||||||
6 | Governors of the Federal Reserve System in its weekly H.15 | ||||||
7 | Statistical Release or successor publication; and (ii) 580 | ||||||
8 | basis points, including a revenue conversion factor | ||||||
9 | calculated to recover or refund all additional income | ||||||
10 | taxes that may be payable or receivable as a result of that | ||||||
11 | return. | ||||||
12 | When an electric utility creates a regulatory asset | ||||||
13 | under the provisions of this paragraph (1) of subsection | ||||||
14 | (h), the costs are recovered over a period during which | ||||||
15 | customers also receive a benefit, which is in the public | ||||||
16 | interest. Accordingly, it is the intent of the General | ||||||
17 | Assembly that an electric utility that elects to create a | ||||||
18 | regulatory asset under the provisions of this paragraph | ||||||
19 | (1) shall recover all of the associated costs, including, | ||||||
20 | but not limited to, its cost of capital as set forth in | ||||||
21 | this paragraph (1). After the Commission has approved the | ||||||
22 | prudence and reasonableness of the costs that comprise the | ||||||
23 | regulatory asset, the electric utility shall be permitted | ||||||
24 | to recover all such costs, and the value and | ||||||
25 | recoverability through rates of the associated regulatory | ||||||
26 | asset shall not be limited, altered, impaired, or reduced. |
| |||||||
| |||||||
1 | To enable the financing of the incremental capital | ||||||
2 | expenditures, including regulatory assets, for electric | ||||||
3 | utilities that serve less than 3,000,000 retail customers | ||||||
4 | but more than 500,000 retail customers in the State, the | ||||||
5 | utility's actual year-end capital structure that includes | ||||||
6 | a common equity ratio, excluding goodwill, of up to and | ||||||
7 | including 50% of the total capital structure shall be | ||||||
8 | deemed reasonable and used to set rates. | ||||||
9 | (2) The utility, at its election, may recover all of | ||||||
10 | the costs as part of a filing for a general increase in | ||||||
11 | rates under Article IX of this Act, as part of an annual | ||||||
12 | filing to update a performance-based formula rate under | ||||||
13 | subsection (d) of Section 16-108.5 of this Act, or through | ||||||
14 | an automatic adjustment clause tariff, provided that | ||||||
15 | nothing in this paragraph (2) permits the double recovery | ||||||
16 | of such costs from customers. If the utility elects to | ||||||
17 | recover the costs it incurs under subsections (b) and (c) | ||||||
18 | through an automatic adjustment clause tariff, the utility | ||||||
19 | may file its proposed tariff together with the tariff it | ||||||
20 | files under subsection (b) of this Section or at a later | ||||||
21 | time. The proposed tariff shall provide for an annual | ||||||
22 | reconciliation, less any deferred taxes related to the | ||||||
23 | reconciliation, with interest at an annual rate of return | ||||||
24 | equal to the utility's weighted average cost of capital as | ||||||
25 | calculated under paragraph (1) of this subsection (h), | ||||||
26 | including a revenue conversion factor calculated to |
| |||||||
| |||||||
1 | recover or refund all additional income taxes that may be | ||||||
2 | payable or receivable as a result of that return, of the | ||||||
3 | revenue requirement reflected in rates for each calendar | ||||||
4 | year, beginning with the calendar year in which the | ||||||
5 | utility files its automatic adjustment clause tariff under | ||||||
6 | this subsection (h), with what the revenue requirement | ||||||
7 | would have been had the actual cost information for the | ||||||
8 | applicable calendar year been available at the filing | ||||||
9 | date. The Commission shall review the proposed tariff and | ||||||
10 | may make changes to the tariff that are consistent with | ||||||
11 | this Section and with the Commission's authority under | ||||||
12 | Article IX of this Act, subject to notice and hearing. | ||||||
13 | Following notice and hearing, the Commission shall issue | ||||||
14 | an order approving, or approving with modification, such | ||||||
15 | tariff no later than 240 days after the utility files its | ||||||
16 | tariff. | ||||||
17 | (i) An electric utility shall recover from its retail | ||||||
18 | customers, on a volumetric basis, all of the costs of the | ||||||
19 | rebates made under a tariff or tariffs placed into effect | ||||||
20 | under subsection (e) of this Section, including, but not | ||||||
21 | limited to, the value of the rebates and all costs incurred by | ||||||
22 | the utility to comply with and implement subsection (e) of | ||||||
23 | this Section, consistent with the following provisions: | ||||||
24 | (1) The utility may defer a portion of its costs as a | ||||||
25 | regulatory asset. The Commission shall determine the | ||||||
26 | portion that may be appropriately deferred as a regulatory |
| |||||||
| |||||||
1 | asset. Factors that the Commission shall consider in | ||||||
2 | determining the portion of costs that shall be deferred as | ||||||
3 | a regulatory asset include, but are not limited to: (i) | ||||||
4 | whether and the extent to which a cost effectively | ||||||
5 | deferred or avoided other distribution system operating | ||||||
6 | costs or capital expenditures; (ii) the extent to which a | ||||||
7 | cost provides environmental benefits; (iii) the extent to | ||||||
8 | which a cost improves system reliability or resilience; | ||||||
9 | (iv) the electric utility's distribution system plan | ||||||
10 | developed pursuant to Section 16-105.17 of this Act; (v) | ||||||
11 | the extent to which a cost advances equity principles; and | ||||||
12 | (vi) such other factors as the Commission deems | ||||||
13 | appropriate. The remainder of costs shall be deemed an | ||||||
14 | operating expense and shall be recoverable if found | ||||||
15 | prudent and reasonable by the Commission. | ||||||
16 | The total costs deferred as a regulatory asset shall | ||||||
17 | be amortized over a 15-year period. The unamortized | ||||||
18 | balance shall be recognized as of December 31 for a given | ||||||
19 | year. The utility shall also earn a return on the total of | ||||||
20 | the unamortized balance of the regulatory assets, less any | ||||||
21 | deferred taxes related to the unamortized balance, at an | ||||||
22 | annual rate equal to the utility's weighted average cost | ||||||
23 | of capital that includes, based on a year-end capital | ||||||
24 | structure, the utility's actual cost of debt for the | ||||||
25 | applicable calendar year and a cost of equity, which shall | ||||||
26 | be calculated as the sum of: (I) the average for the |
| |||||||
| |||||||
1 | applicable calendar year of the monthly average yields of | ||||||
2 | 30-year U.S. Treasury bonds published by the Board of | ||||||
3 | Governors of the Federal Reserve System in its weekly H.15 | ||||||
4 | Statistical Release or successor publication; and (II) 580 | ||||||
5 | basis points, including a revenue conversion factor | ||||||
6 | calculated to recover or refund all additional income | ||||||
7 | taxes that may be payable or receivable as a result of that | ||||||
8 | return. | ||||||
9 | (2) The utility may recover all of the costs through | ||||||
10 | an automatic adjustment clause tariff, on a volumetric | ||||||
11 | basis. The utility may file its proposed cost-recovery | ||||||
12 | tariff together with the tariff it files under subsection | ||||||
13 | (e) of this Section or at a later time. The proposed tariff | ||||||
14 | shall provide for an annual reconciliation, less any | ||||||
15 | deferred taxes related to the reconciliation, with | ||||||
16 | interest at an annual rate of return equal to the | ||||||
17 | utility's weighted average cost of capital as calculated | ||||||
18 | under paragraph (1) of this subsection (i), including a | ||||||
19 | revenue conversion factor calculated to recover or refund | ||||||
20 | all additional income taxes that may be payable or | ||||||
21 | receivable as a result of that return, of the revenue | ||||||
22 | requirement reflected in rates for each calendar year, | ||||||
23 | beginning with the calendar year in which the utility | ||||||
24 | files its automatic adjustment clause tariff under this | ||||||
25 | subsection (i), with what the revenue requirement would | ||||||
26 | have been had the actual cost information for the |
| |||||||
| |||||||
1 | applicable calendar year been available at the filing | ||||||
2 | date. The Commission shall review the proposed tariff and | ||||||
3 | may make changes to the tariff that are consistent with | ||||||
4 | this Section and with the Commission's authority under | ||||||
5 | Article IX of this Act, subject to notice and hearing. | ||||||
6 | Following notice and hearing, the Commission shall issue | ||||||
7 | an order approving, or approving with modification, such | ||||||
8 | tariff no later than 240 days after the utility files its | ||||||
9 | tariff. | ||||||
10 | (j) No later than 90 days after the Commission enters an | ||||||
11 | order, or order on rehearing, whichever is later, approving an | ||||||
12 | electric utility's proposed tariff under this Section, the | ||||||
13 | electric utility shall provide notice of the availability of | ||||||
14 | rebates under this Section. | ||||||
15 | (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
| ||||||
16 | (220 ILCS 5/16-107.9 new) | ||||||
17 | Sec. 16-107.9. Virtual power plant program. | ||||||
18 | (a) In this Section: | ||||||
19 | "Aggregator" means a party, other than the electric | ||||||
20 | utility or its affiliate, that (i) represents and aggregates | ||||||
21 | the load of participating customers who collectively have the | ||||||
22 | ability to deploy 100 kilowatts or more of deployment of | ||||||
23 | eligible devices and (ii) is responsible for performance of | ||||||
24 | the aggregation in the program. | ||||||
25 | "Distributed energy resources management system" or |
| |||||||
| |||||||
1 | "DERMS" means a platform that may be used by distribution | ||||||
2 | system operators or utilities to integrate grid resources such | ||||||
3 | as distributed energy resources into system operations. | ||||||
4 | "Distributed renewable energy generation device" has the | ||||||
5 | meaning set forth in Section 1-10 of the Illinois Power Agency | ||||||
6 | Act. | ||||||
7 | "Eligible devices" means a distributed renewable energy | ||||||
8 | device paired with one or more energy storage systems. | ||||||
9 | "Energy storage system" has the meaning set forth in | ||||||
10 | subsection (a) of Section 16-107.6. | ||||||
11 | "Participating customer" means a retail customer as | ||||||
12 | defined in Section 16-102 with one or more eligible devices, | ||||||
13 | including a community renewable generation project. | ||||||
14 | "Smart inverter" has the meaning set forth in subsection | ||||||
15 | (a) of Section 16-107.6. | ||||||
16 | (b) The General Assembly finds that when eligible devices | ||||||
17 | commit to deployment at times of stress on the grid and in | ||||||
18 | wholesale energy markets, the actual deployment benefits all | ||||||
19 | customers of the utility with enhanced reliability and | ||||||
20 | protection from wholesale price increases and that those | ||||||
21 | socialized goods should be encouraged and compensated. | ||||||
22 | (c) Within 60 days after the effective date of this | ||||||
23 | amendatory Act of the 103rd General Assembly, each electric | ||||||
24 | utility serving more than 300,000 customers as of January 1, | ||||||
25 | 2023, shall propose an initial tariff. The initial tariff | ||||||
26 | shall be consistent with the following: |
| |||||||
| |||||||
1 | (1) Each request by the utility for an aggregator or | ||||||
2 | participating customer to deploy eligible devices to the | ||||||
3 | level identified in advance by the aggregator or | ||||||
4 | participating customer shall be an event. | ||||||
5 | (2) In exchange for an aggregator facilitating the | ||||||
6 | dispatch of eligible systems during hours identified by | ||||||
7 | the utility under this tariff or a participating customer | ||||||
8 | not using an aggregator dispatching, with each time period | ||||||
9 | being an event, not to exceed 60 hours in a calendar year | ||||||
10 | and not to exceed 2 consecutive hours, the utility shall, | ||||||
11 | at the end of each delivery year during which an | ||||||
12 | aggregator participates, compensate the aggregator in an | ||||||
13 | amount per kilowatt multiplied by the average number of | ||||||
14 | kilowatts discharged during events in a delivery year by | ||||||
15 | those eligible systems enrolled with the aggregator, with | ||||||
16 | the amount per kilowatt to be determined by the | ||||||
17 | Commission. Discharge shall be measured by the total power | ||||||
18 | and energy measured by the inverter of the eligible device | ||||||
19 | and shall not distinguish between power and energy from | ||||||
20 | the distributed renewable energy generation device or the | ||||||
21 | energy storage system. In determining the value of the | ||||||
22 | performance payment, the Commission shall, at minimum, | ||||||
23 | consider the benefits to the utility and ratepayers of | ||||||
24 | peak remediation, reduced capacity and transmission | ||||||
25 | allocations to the applicable regional transmission | ||||||
26 | organization zone, and a reasonable estimation of the |
| |||||||
| |||||||
1 | value of reduced transmission investment and other grid | ||||||
2 | services not compensated by tariffs authorized under | ||||||
3 | Section 16-107.6. The value shall be set to encourage | ||||||
4 | robust participation and shall be for a term of no less | ||||||
5 | than 5 years. At no time shall the compensation per | ||||||
6 | average kilowatt of demand reduction delivered be less | ||||||
7 | than $250. | ||||||
8 | (3) An aggregator or participating customer applying | ||||||
9 | individually must represent that it has identified for | ||||||
10 | participation one or more eligible devices with an | ||||||
11 | aggregate export capacity of at least 100 kilowatts or any | ||||||
12 | greater amount. Nothing in the tariff shall require a | ||||||
13 | particular participating customer using an aggregator | ||||||
14 | deploy at any particular time. | ||||||
15 | (4) The utility shall not send or receive signals | ||||||
16 | directly to or from any participating customer represented | ||||||
17 | by an aggregator for an event under the virtual power | ||||||
18 | plant program described in this Section. | ||||||
19 | (5) The aggregator may have capabilities to receive | ||||||
20 | dispatch signals from utilities or utility-contracted | ||||||
21 | DERMS providers through communication protocols, such as | ||||||
22 | IEEE 2030.5 or OpenADR, or through other protocol as the | ||||||
23 | Commission may approve. To facilitate adoption and | ||||||
24 | participation, the utility must also provide dispatch | ||||||
25 | signals in the form of an email or mutually agreeable | ||||||
26 | implementation. |
| |||||||
| |||||||
1 | (6) Notwithstanding anything to the contrary, nothing | ||||||
2 | prohibits a participating customer from simultaneously | ||||||
3 | being a participating customer and taking service under | ||||||
4 | tariffs authorized by Section 16-107.5 or 16-107.6. | ||||||
5 | (7) A participating customer may enroll in the virtual | ||||||
6 | power plant program directly if eligible or through an | ||||||
7 | aggregator for one or more years, and the electric utility | ||||||
8 | shall not set a minimum or maximum length of participation | ||||||
9 | for an eligible system represented by an aggregator. The | ||||||
10 | utility shall not limit the number of participating | ||||||
11 | customers nor shall any customer be prohibited from | ||||||
12 | participating due to its rate class. | ||||||
13 | (8) The electric utility may include reasonable | ||||||
14 | requirements for participation consistent with this | ||||||
15 | subsection except that the utility may not require | ||||||
16 | collateral from a participating customer or an aggregator | ||||||
17 | and neither the utility nor entities with which the | ||||||
18 | utility shares a common parent may be an aggregator. In no | ||||||
19 | event may the electric utility call an event with less | ||||||
20 | than 24 hours' prior notice and in no event may one or more | ||||||
21 | events on a single calendar day total more than 2 hours. | ||||||
22 | The electric utility shall not penalize a participating | ||||||
23 | customer or aggregator for a participating customer | ||||||
24 | exporting during an event, and the electric utility shall | ||||||
25 | not require preapproval for customer export during an | ||||||
26 | event. |
| |||||||
| |||||||
1 | (9) The utility shall recover the costs of the virtual | ||||||
2 | power plant program through delivery rates, including | ||||||
3 | delivery rates authorized by the Multi-Year Rate Plan. | ||||||
4 | (d) The Commission shall approve or approve with | ||||||
5 | modifications the tariff filed by each utility pursuant to | ||||||
6 | subsection (c) within 240 days after its filing by the | ||||||
7 | utility. At any time, the utility may propose revisions to the | ||||||
8 | initial tariff or any revisions to those revisions, and the | ||||||
9 | Commission shall approve such revisions if, in addition to | ||||||
10 | requirements under Article IX, such revisions are consistent | ||||||
11 | with the requirements of this Section. | ||||||
12 | (e) Not more than 6 months after 2 full delivery years of | ||||||
13 | operation of the tariffs authorized in this Section, the | ||||||
14 | Commission shall issue a report to the General Assembly | ||||||
15 | assessing the value and efficacy of the virtual power plant | ||||||
16 | program, including proposals for expansions or modifications. | ||||||
17 | (f) Nothing in the virtual power plant program shall | ||||||
18 | either prevent the participating customer from participating, | ||||||
19 | directly or through a third-party aggregator, in any other | ||||||
20 | program, including any program required or authorized by | ||||||
21 | Section 16-107.5 or 16-107.6, or impair the entitlement of any | ||||||
22 | participating customer to benefits authorized to the | ||||||
23 | participating customer by Section 16-107.5. | ||||||
24 | (g) The Commission may consider providing compensation to | ||||||
25 | aggregators or participating customers not using an aggregator | ||||||
26 | to the extent that the aggregators' participating customers or |
| |||||||
| |||||||
1 | participating customers not using an aggregator are located in | ||||||
2 | equity investment eligible communities, as that term is | ||||||
3 | defined in Section 1-10 of the Illinois Power Agency Act. | ||||||
4 | (h) The tariffs approved by the Commission shall not | ||||||
5 | reflect any additional charges, fees, or insurance | ||||||
6 | requirements imposed on those owning or operating distributed | ||||||
7 | renewable energy generation devices, distributed energy | ||||||
8 | resources, or energy storage systems beyond those imposed on | ||||||
9 | similarly situated customers that do not own or operate these | ||||||
10 | resources. | ||||||
11 | (i) If a utility issuing a tariff under this Section | ||||||
12 | conducts measurement and verification prescribed by the | ||||||
13 | Commission, notwithstanding anything to the contrary all | ||||||
14 | discharge from distributed renewable generation devices taking | ||||||
15 | service under the tariff shall be counted towards the | ||||||
16 | utility's peak load reduction performance metric authorized by | ||||||
17 | item (ii) of subparagraph (A) of paragraph (2) of subsection | ||||||
18 | (e) of Section 16-108.18. The Commission shall not require an | ||||||
19 | eligible system to participate in any capacity or demand | ||||||
20 | response markets or programs as a condition of the load | ||||||
21 | reduction attributable to participating systems to count | ||||||
22 | toward the utility's peak load reduction performance metric.
| ||||||
23 | (220 ILCS 5/16-107.10 new) | ||||||
24 | Sec. 16-107.10. Peak remediation program. | ||||||
25 | (a) In this Section: |
| |||||||
| |||||||
1 | "Community renewable generation project" has the meaning | ||||||
2 | set forth in Section 1-10 of the Illinois Power Agency Act. | ||||||
3 | "Defined discharge hours" means the defined hours in the | ||||||
4 | initial tariff or subsequent tariffs that an eligible device | ||||||
5 | is eligible to receive a peak discharge payment per | ||||||
6 | kilowatt-hour of energy discharged. | ||||||
7 | "Eligible device" means a community renewable generation | ||||||
8 | project paired with one or more energy storage systems. | ||||||
9 | "Energy storage system" has the meaning set forth in | ||||||
10 | subsection (a) of Section 16-107.6. | ||||||
11 | "Nameplate capacity" has the meaning set forth in Section | ||||||
12 | 1-10 of the Illinois Power Agency Act. | ||||||
13 | "Peak discharge payment" means a price per kilowatt hour | ||||||
14 | paid for energy discharged from an eligible device during the | ||||||
15 | defined discharge hours. | ||||||
16 | "Threshold date" has the meaning set forth in subsection | ||||||
17 | (a) of Section 16-107.6. | ||||||
18 | (b) The General Assembly finds that the electric grid sees | ||||||
19 | high demand for electricity but fewer renewable resources | ||||||
20 | available to meet that high demand. The General Assembly | ||||||
21 | further finds that all ratepayers benefit from deployment of | ||||||
22 | energy storage in a way that alleviates stress on the grid and | ||||||
23 | reduces the costs for ratepayers frequently allocated during | ||||||
24 | those peak hours. | ||||||
25 | (c) Within 90 days after the effective date of this | ||||||
26 | amendatory Act of the 103rd General Assembly, each electric |
| |||||||
| |||||||
1 | utility serving more than 300,000 retail customers as of | ||||||
2 | January 1, 2023 shall propose an initial tariff. The initial | ||||||
3 | tariff shall be consistent with the following: | ||||||
4 | (1) The utility shall compensate eligible devices with | ||||||
5 | a nameplate capacity of at least 100 kilowatts but no more | ||||||
6 | than 5,000 kilowatts for discharging into the grid during | ||||||
7 | defined discharge hours. | ||||||
8 | (2) The defined discharge hours shall be the hours of | ||||||
9 | 4 p.m. through 8 p.m. on days during the months of June, | ||||||
10 | July, August, and September. | ||||||
11 | (3) In exchange for generating and providing through | ||||||
12 | its meter to the utility's distribution system at least 50 | ||||||
13 | kilowatts during defined discharge hours, the utility | ||||||
14 | shall compensate the owner or operator of the eligible | ||||||
15 | device or a third party designated by the owner or | ||||||
16 | operator of the eligible device a peak discharge payment | ||||||
17 | in an amount to be determined by the Commission in | ||||||
18 | proportion to the average discharge during the hours | ||||||
19 | according to a pre-defined per kilowatt average discharge | ||||||
20 | payment. Discharge shall be measured by the total power | ||||||
21 | and energy measured by the inverter of the eligible device | ||||||
22 | and shall not distinguish between power and energy from | ||||||
23 | the distributed renewable energy generation device or the | ||||||
24 | energy storage system. | ||||||
25 | (4) In determining the value of the peak discharge | ||||||
26 | payment for each participating utility, the Commission |
| |||||||
| |||||||
1 | shall, at minimum, consider the benefits to the utility | ||||||
2 | and ratepayers of peak remediation, reduced capacity, and | ||||||
3 | transmission allocations to the applicable regional | ||||||
4 | transmission organization zone, and a reasonable | ||||||
5 | estimation of the value of reduced transmission investment | ||||||
6 | and other grid services not compensated by tariffs | ||||||
7 | authorized under Section 16-107.6. The value shall be set | ||||||
8 | to encourage robust participation and shall be for a term | ||||||
9 | of no less than 15 years. The utility shall not limit the | ||||||
10 | number or capacity of participating devices. | ||||||
11 | (5) The electric utility may include reasonable | ||||||
12 | requirements for participation consistent with this | ||||||
13 | subsection except that the utility may not require | ||||||
14 | collateral from the owner or operator of a participating | ||||||
15 | eligible device. | ||||||
16 | (6) Nothing in the tariff or this Section shall | ||||||
17 | separately or independently authorize the utility to | ||||||
18 | control deployment of the storage device. | ||||||
19 | (7) The utility shall recover the costs incurred under | ||||||
20 | the tariff through delivery rates, including delivery | ||||||
21 | rates authorized by the Multi-Year Rate Plan. | ||||||
22 | (d) The Commission shall approve or approve with | ||||||
23 | modifications the initial tariff filed by each utility | ||||||
24 | pursuant to subsection (c) within 240 days after filing by the | ||||||
25 | utility. At any time, the utility may propose revisions to the | ||||||
26 | initial tariff or any revisions to those revisions, and the |
| |||||||
| |||||||
1 | Commission shall approve such revisions if, in addition to | ||||||
2 | requirements under Article IX, such revisions are consistent | ||||||
3 | with the requirements of this Section. | ||||||
4 | (e) After the threshold date, the utility shall file an | ||||||
5 | annual petition to update the initial tariff for eligible | ||||||
6 | systems that begin to take service under the tariff during the | ||||||
7 | annual period. The utility shall be allowed to update the peak | ||||||
8 | discharge payment and defined discharge hours, which shall not | ||||||
9 | begin earlier than 4 p.m., but must otherwise meet all the | ||||||
10 | requirements under subsection (c). The Commission shall | ||||||
11 | approve the petition to update the initial tariff within 90 | ||||||
12 | days after the petition is filed. | ||||||
13 | (f) Nothing in this Section, including any rule, | ||||||
14 | regulation, or tariff authorized by this Section, shall | ||||||
15 | prevent the eligible device or any component of the eligible | ||||||
16 | device from participating in any program required or | ||||||
17 | authorized by Section 16-107.6, nor shall it impair the | ||||||
18 | entitlement of any participating customer to benefits | ||||||
19 | authorized by Section 16-107.5. | ||||||
20 | (g) The tariffs approved by the Commission shall not | ||||||
21 | reflect any additional charges, fees, or insurance | ||||||
22 | requirements imposed on those owning or operating distributed | ||||||
23 | renewable energy generation device, distributed energy | ||||||
24 | resources, or energy storage system beyond those imposed on | ||||||
25 | similarly situated customers that do not own or operate these | ||||||
26 | resources. |
| |||||||
| |||||||
1 | (h) If a utility issuing a tariff under this Section | ||||||
2 | conducts measurement and verification prescribed by the | ||||||
3 | Commission, notwithstanding anything to the contrary, all | ||||||
4 | discharge from community renewable generation projects taking | ||||||
5 | service under the tariff shall be counted toward the utility's | ||||||
6 | peak load reduction performance metric authorized by item (ii) | ||||||
7 | of subparagraph (A) of paragraph (2) of subsection (e) of | ||||||
8 | Section 16-108.18. The Commission shall not require an | ||||||
9 | eligible system to participate in any capacity or demand | ||||||
10 | response markets or programs as a condition of the load | ||||||
11 | reduction attributable to participating systems to count | ||||||
12 | toward the utility's peak load reduction performance metric.
| ||||||
13 | (220 ILCS 5/16-107.11 new) | ||||||
14 | Sec. 16-107.11. Stand-alone energy storage distribution | ||||||
15 | deployment program. | ||||||
16 | (a) In this Section: | ||||||
17 | "Eligible device" means a stand-alone energy storage | ||||||
18 | system. | ||||||
19 | "Paired" means an energy storage system is charged with | ||||||
20 | electricity generated by a distribution generation device or | ||||||
21 | community renewable generation project. | ||||||
22 | "Program" means the stand-alone energy storage | ||||||
23 | distribution deployment program. | ||||||
24 | "Stand-alone energy storage system" means an energy | ||||||
25 | storage system that is not paired with a distributed |
| |||||||
| |||||||
1 | generation device or a community renewable generation project | ||||||
2 | and may be interconnected on the customer's side or the | ||||||
3 | utility's side of a customer's meter, but shall be | ||||||
4 | interconnected under subsection (h) of Section 16-107.5. | ||||||
5 | (b) The General Assembly finds that energy storage devices | ||||||
6 | interconnected to the distribution grid, including behind | ||||||
7 | customer meters, can provide unique values and benefits to | ||||||
8 | electric ratepayers in Illinois. Energy storage does not need | ||||||
9 | to be paired with a renewable generation device to provide | ||||||
10 | values and benefits. Vulnerable urban areas may be less able | ||||||
11 | to support renewable generation deployments due to land, roof, | ||||||
12 | or other constraints. A well-designed stand-alone energy | ||||||
13 | storage deployment program can benefit electric customers by | ||||||
14 | alleviating stress on distribution grid infrastructure, | ||||||
15 | deferring or avoiding costly distribution grid investments, | ||||||
16 | increasing the resilience and reliability of the electric | ||||||
17 | distribution grid, reducing outages, avoiding health and | ||||||
18 | welfare risks to vulnerable populations, and providing energy | ||||||
19 | and capacity during times of high demand, resulting in lower | ||||||
20 | costs overall. | ||||||
21 | (c) Within 60 days after the effective date of this | ||||||
22 | amendatory Act of the 103rd General Assembly, the Commission | ||||||
23 | shall establish a working group with relevant stakeholders to | ||||||
24 | develop a stand-alone energy storage distribution deployment | ||||||
25 | program. The program shall be designed to compensate | ||||||
26 | front-of-meter and back-of-meter energy storage devices |
| |||||||
| |||||||
1 | deployed on the distribution grid for the value the storage | ||||||
2 | devices provide for Illinois ratepayers. | ||||||
3 | (d) Each utility serving more than 100,000 retail | ||||||
4 | customers on January 1, 2023 shall file with the Commission, | ||||||
5 | no more than 210 days after the effective date of this | ||||||
6 | amendatory Act of the 103rd General Assembly, a tariff | ||||||
7 | implementing the requirements of this subsection. The | ||||||
8 | Commission shall consider the final report of the working | ||||||
9 | group and modify the tariffs so that they comply with this | ||||||
10 | Section and the working group's report. A tariff for | ||||||
11 | compensation of stand-alone energy storage systems shall be | ||||||
12 | made available for no less than 20 years and shall allow for | ||||||
13 | stacked revenues to reflect the spectrum of values provided by | ||||||
14 | participating devices. The resulting revenue model shall be | ||||||
15 | financeable and provide for robust deployment in locations | ||||||
16 | that improve reliability in vulnerable urban, suburban, and | ||||||
17 | rural communities throughout the State. The compensation | ||||||
18 | structure for deploying stand-alone energy storage systems | ||||||
19 | shall include, but shall not be limited to, capacity and | ||||||
20 | transmission value, energy value, system-wide resilience and | ||||||
21 | reliability benefits, and distribution value, including the | ||||||
22 | value equivalent to the location's marginal cost of | ||||||
23 | distribution service, that shall include avoided future | ||||||
24 | distribution grid capital investments and operation and | ||||||
25 | maintenance costs and shall be updated at least annually. The | ||||||
26 | compensation structure shall consider additional benefits to |
| |||||||
| |||||||
1 | the distribution grid in specific locations where the grid and | ||||||
2 | communities are particularly vulnerable to disruptions, | ||||||
3 | including location-specific reliability and resilience | ||||||
4 | benefits, distribution voltage, and power quality benefits. | ||||||
5 | The values shall be examined on a substation and feeder level. | ||||||
6 | For purposes of this subsection, "vulnerable communities" | ||||||
7 | means communities that suffer from lower-than-average electric | ||||||
8 | reliability indicators, including, but not limited to, SAFI, | ||||||
9 | CADI, CEMI, as identified by the Commission, in consultation | ||||||
10 | with the utilities. | ||||||
11 | (e) Each tariff applies to stand-alone energy storage | ||||||
12 | systems interconnected to the distribution grid and purchasing | ||||||
13 | certain services from the utility. | ||||||
14 | (f) The tariffs shall account for operational parameters | ||||||
15 | of participating systems and advantage off-peak charging | ||||||
16 | through dynamic pricing. Distribution rates shall be | ||||||
17 | non-discriminatory and designed to recoup the distribution | ||||||
18 | company's net costs in a manner similar to how they are | ||||||
19 | incurred by the distribution company, in consideration of | ||||||
20 | project sponsor-funded interconnection upgrades and without | ||||||
21 | unduly impeding the participation of energy storage systems. | ||||||
22 | (g) To the extent required, each utility filing a tariff | ||||||
23 | under this Section shall provide the Commission with notice of | ||||||
24 | its intent to promptly file with the Federal Energy Regulatory | ||||||
25 | Commission a wholesale distribution service rate schedule to | ||||||
26 | apply to standalone energy storage systems that are |
| |||||||
| |||||||
1 | interconnected to their distribution network but are | ||||||
2 | transacting in PJM or MISO's wholesale electricity markets, as | ||||||
3 | applicable. | ||||||
4 | (h) Participation in the program shall not prohibit an | ||||||
5 | energy storage system from selling non-duplicative products | ||||||
6 | and services in a wholesale market.
| ||||||
7 | (220 ILCS 5/16-108) | ||||||
8 | Sec. 16-108. Recovery of costs associated with the | ||||||
9 | provision of delivery and other services. | ||||||
10 | (a) An electric utility shall file a delivery services | ||||||
11 | tariff with the Commission at least 210 days prior to the date | ||||||
12 | that it is required to begin offering such services pursuant | ||||||
13 | to this Act. An electric utility shall provide the components | ||||||
14 | of delivery services that are subject to the jurisdiction of | ||||||
15 | the Federal Energy Regulatory Commission at the same prices, | ||||||
16 | terms and conditions set forth in its applicable tariff as | ||||||
17 | approved or allowed into effect by that Commission. The | ||||||
18 | Commission shall otherwise have the authority pursuant to | ||||||
19 | Article IX to review, approve, and modify the prices, terms | ||||||
20 | and conditions of those components of delivery services not | ||||||
21 | subject to the jurisdiction of the Federal Energy Regulatory | ||||||
22 | Commission, including the authority to determine the extent to | ||||||
23 | which such delivery services should be offered on an unbundled | ||||||
24 | basis. In making any such determination the Commission shall | ||||||
25 | consider, at a minimum, the effect of additional unbundling on |
| |||||||
| |||||||
1 | (i) the objective of just and reasonable rates, (ii) electric | ||||||
2 | utility employees, and (iii) the development of competitive | ||||||
3 | markets for electric energy services in Illinois. | ||||||
4 | (b) The Commission shall enter an order approving, or | ||||||
5 | approving as modified, the delivery services tariff no later | ||||||
6 | than 30 days prior to the date on which the electric utility | ||||||
7 | must commence offering such services. The Commission may | ||||||
8 | subsequently modify such tariff pursuant to this Act. | ||||||
9 | (c) The electric utility's tariffs shall define the | ||||||
10 | classes of its customers for purposes of delivery services | ||||||
11 | charges. Delivery services shall be priced and made available | ||||||
12 | to all retail customers electing delivery services in each | ||||||
13 | such class on a nondiscriminatory basis regardless of whether | ||||||
14 | the retail customer chooses the electric utility, an affiliate | ||||||
15 | of the electric utility, or another entity as its supplier of | ||||||
16 | electric power and energy. Charges for delivery services shall | ||||||
17 | be cost based, and shall allow the electric utility to recover | ||||||
18 | the costs of providing delivery services through its charges | ||||||
19 | to its delivery service customers that use the facilities and | ||||||
20 | services associated with such costs. Such costs shall include | ||||||
21 | the costs of owning, operating and maintaining transmission | ||||||
22 | and distribution facilities. The Commission shall also be | ||||||
23 | authorized to consider whether, and if so to what extent, the | ||||||
24 | following costs are appropriately included in the electric | ||||||
25 | utility's delivery services rates: (i) the costs of that | ||||||
26 | portion of generation facilities used for the production and |
| |||||||
| |||||||
1 | absorption of reactive power in order that retail customers | ||||||
2 | located in the electric utility's service area can receive | ||||||
3 | electric power and energy from suppliers other than the | ||||||
4 | electric utility, and (ii) the costs associated with the use | ||||||
5 | and redispatch of generation facilities to mitigate | ||||||
6 | constraints on the transmission or distribution system in | ||||||
7 | order that retail customers located in the electric utility's | ||||||
8 | service area can receive electric power and energy from | ||||||
9 | suppliers other than the electric utility. Nothing in this | ||||||
10 | subsection shall be construed as directing the Commission to | ||||||
11 | allocate any of the costs described in (i) or (ii) that are | ||||||
12 | found to be appropriately included in the electric utility's | ||||||
13 | delivery services rates to any particular customer group or | ||||||
14 | geographic area in setting delivery services rates. | ||||||
15 | (d) The Commission shall establish charges, terms and | ||||||
16 | conditions for delivery services that are just and reasonable | ||||||
17 | and shall take into account customer impacts when establishing | ||||||
18 | such charges. In establishing charges, terms and conditions | ||||||
19 | for delivery services, the Commission shall take into account | ||||||
20 | voltage level differences. A retail customer shall have the | ||||||
21 | option to request to purchase electric service at any delivery | ||||||
22 | service voltage reasonably and technically feasible from the | ||||||
23 | electric facilities serving that customer's premises provided | ||||||
24 | that there are no significant adverse impacts upon system | ||||||
25 | reliability or system efficiency. A retail customer shall also | ||||||
26 | have the option to request to purchase electric service at any |
| |||||||
| |||||||
1 | point of delivery that is reasonably and technically feasible | ||||||
2 | provided that there are no significant adverse impacts on | ||||||
3 | system reliability or efficiency. Such requests shall not be | ||||||
4 | unreasonably denied. | ||||||
5 | (e) Electric utilities shall recover the costs of | ||||||
6 | installing, operating or maintaining facilities for the | ||||||
7 | particular benefit of one or more delivery services customers, | ||||||
8 | including without limitation any costs incurred in complying | ||||||
9 | with a customer's request to be served at a different voltage | ||||||
10 | level, directly from the retail customer or customers for | ||||||
11 | whose benefit the costs were incurred, to the extent such | ||||||
12 | costs are not recovered through the charges referred to in | ||||||
13 | subsections (c) and (d) of this Section. | ||||||
14 | (f) An electric utility shall be entitled but not required | ||||||
15 | to implement transition charges in conjunction with the | ||||||
16 | offering of delivery services pursuant to Section 16-104. If | ||||||
17 | an electric utility implements transition charges, it shall | ||||||
18 | implement such charges for all delivery services customers and | ||||||
19 | for all customers described in subsection (h), but shall not | ||||||
20 | implement transition charges for power and energy that a | ||||||
21 | retail customer takes from cogeneration or self-generation | ||||||
22 | facilities located on that retail customer's premises, if such | ||||||
23 | facilities meet the following criteria: | ||||||
24 | (i) the cogeneration or self-generation facilities | ||||||
25 | serve a single retail customer and are located on that | ||||||
26 | retail customer's premises (for purposes of this |
| |||||||
| |||||||
1 | subparagraph and subparagraph (ii), an industrial or | ||||||
2 | manufacturing retail customer and a third party contractor | ||||||
3 | that is served by such industrial or manufacturing | ||||||
4 | customer through such retail customer's own electrical | ||||||
5 | distribution facilities under the circumstances described | ||||||
6 | in subsection (vi) of the definition of "alternative | ||||||
7 | retail electric supplier" set forth in Section 16-102, | ||||||
8 | shall be considered a single retail customer); | ||||||
9 | (ii) the cogeneration or self-generation facilities | ||||||
10 | either (A) are sized pursuant to generally accepted | ||||||
11 | engineering standards for the retail customer's electrical | ||||||
12 | load at that premises (taking into account standby or | ||||||
13 | other reliability considerations related to that retail | ||||||
14 | customer's operations at that site) or (B) if the facility | ||||||
15 | is a cogeneration facility located on the retail | ||||||
16 | customer's premises, the retail customer is the thermal | ||||||
17 | host for that facility and the facility has been designed | ||||||
18 | to meet that retail customer's thermal energy requirements | ||||||
19 | resulting in electrical output beyond that retail | ||||||
20 | customer's electrical demand at that premises, comply with | ||||||
21 | the operating and efficiency standards applicable to | ||||||
22 | "qualifying facilities" specified in title 18 Code of | ||||||
23 | Federal Regulations Section 292.205 as in effect on the | ||||||
24 | effective date of this amendatory Act of 1999; | ||||||
25 | (iii) the retail customer on whose premises the | ||||||
26 | facilities are located either has an exclusive right to |
| |||||||
| |||||||
1 | receive, and corresponding obligation to pay for, all of | ||||||
2 | the electrical capacity of the facility, or in the case of | ||||||
3 | a cogeneration facility that has been designed to meet the | ||||||
4 | retail customer's thermal energy requirements at that | ||||||
5 | premises, an identified amount of the electrical capacity | ||||||
6 | of the facility, over a minimum 5-year period; and | ||||||
7 | (iv) if the cogeneration facility is sized for the | ||||||
8 | retail customer's thermal load at that premises but | ||||||
9 | exceeds the electrical load, any sales of excess power or | ||||||
10 | energy are made only at wholesale, are subject to the | ||||||
11 | jurisdiction of the Federal Energy Regulatory Commission, | ||||||
12 | and are not for the purpose of circumventing the | ||||||
13 | provisions of this subsection (f). | ||||||
14 | If a generation facility located at a retail customer's | ||||||
15 | premises does not meet the above criteria, an electric utility | ||||||
16 | implementing transition charges shall implement a transition | ||||||
17 | charge until December 31, 2006 for any power and energy taken | ||||||
18 | by such retail customer from such facility as if such power and | ||||||
19 | energy had been delivered by the electric utility. Provided, | ||||||
20 | however, that an industrial retail customer that is taking | ||||||
21 | power from a generation facility that does not meet the above | ||||||
22 | criteria but that is located on such customer's premises will | ||||||
23 | not be subject to a transition charge for the power and energy | ||||||
24 | taken by such retail customer from such generation facility if | ||||||
25 | the facility does not serve any other retail customer and | ||||||
26 | either was installed on behalf of the customer and for its own |
| |||||||
| |||||||
1 | use prior to January 1, 1997, or is both predominantly fueled | ||||||
2 | by byproducts of such customer's manufacturing process at such | ||||||
3 | premises and sells or offers an average of 300 megawatts or | ||||||
4 | more of electricity produced from such generation facility | ||||||
5 | into the wholesale market. Such charges shall be calculated as | ||||||
6 | provided in Section 16-102, and shall be collected on each | ||||||
7 | kilowatt-hour delivered under a delivery services tariff to a | ||||||
8 | retail customer from the date the customer first takes | ||||||
9 | delivery services until December 31, 2006 except as provided | ||||||
10 | in subsection (h) of this Section. Provided, however, that an | ||||||
11 | electric utility, other than an electric utility providing | ||||||
12 | service to at least 1,000,000 customers in this State on | ||||||
13 | January 1, 1999, shall be entitled to petition for entry of an | ||||||
14 | order by the Commission authorizing the electric utility to | ||||||
15 | implement transition charges for an additional period ending | ||||||
16 | no later than December 31, 2008. The electric utility shall | ||||||
17 | file its petition with supporting evidence no earlier than 16 | ||||||
18 | months, and no later than 12 months, prior to December 31, | ||||||
19 | 2006. The Commission shall hold a hearing on the electric | ||||||
20 | utility's petition and shall enter its order no later than 8 | ||||||
21 | months after the petition is filed. The Commission shall | ||||||
22 | determine whether and to what extent the electric utility | ||||||
23 | shall be authorized to implement transition charges for an | ||||||
24 | additional period. The Commission may authorize the electric | ||||||
25 | utility to implement transition charges for some or all of the | ||||||
26 | additional period, and shall determine the mitigation factors |
| |||||||
| |||||||
1 | to be used in implementing such transition charges; provided, | ||||||
2 | that the Commission shall not authorize mitigation factors | ||||||
3 | less than 110% of those in effect during the 12 months ended | ||||||
4 | December 31, 2006. In making its determination, the Commission | ||||||
5 | shall consider the following factors: the necessity to | ||||||
6 | implement transition charges for an additional period in order | ||||||
7 | to maintain the financial integrity of the electric utility; | ||||||
8 | the prudence of the electric utility's actions in reducing its | ||||||
9 | costs since the effective date of this amendatory Act of 1997; | ||||||
10 | the ability of the electric utility to provide safe, adequate | ||||||
11 | and reliable service to retail customers in its service area; | ||||||
12 | and the impact on competition of allowing the electric utility | ||||||
13 | to implement transition charges for the additional period. | ||||||
14 | (g) The electric utility shall file tariffs that establish | ||||||
15 | the transition charges to be paid by each class of customers to | ||||||
16 | the electric utility in conjunction with the provision of | ||||||
17 | delivery services. The electric utility's tariffs shall define | ||||||
18 | the classes of its customers for purposes of calculating | ||||||
19 | transition charges. The electric utility's tariffs shall | ||||||
20 | provide for the calculation of transition charges on a | ||||||
21 | customer-specific basis for any retail customer whose average | ||||||
22 | monthly maximum electrical demand on the electric utility's | ||||||
23 | system during the 6 months with the customer's highest monthly | ||||||
24 | maximum electrical demands equals or exceeds 3.0 megawatts for | ||||||
25 | electric utilities having more than 1,000,000 customers, and | ||||||
26 | for other electric utilities for any customer that has an |
| |||||||
| |||||||
1 | average monthly maximum electrical demand on the electric | ||||||
2 | utility's system of one megawatt or more, and (A) for which | ||||||
3 | there exists data on the customer's usage during the 3 years | ||||||
4 | preceding the date that the customer became eligible to take | ||||||
5 | delivery services, or (B) for which there does not exist data | ||||||
6 | on the customer's usage during the 3 years preceding the date | ||||||
7 | that the customer became eligible to take delivery services, | ||||||
8 | if in the electric utility's reasonable judgment there exists | ||||||
9 | comparable usage information or a sufficient basis to develop | ||||||
10 | such information, and further provided that the electric | ||||||
11 | utility can require customers for which an individual | ||||||
12 | calculation is made to sign contracts that set forth the | ||||||
13 | transition charges to be paid by the customer to the electric | ||||||
14 | utility pursuant to the tariff. | ||||||
15 | (h) An electric utility shall also be entitled to file | ||||||
16 | tariffs that allow it to collect transition charges from | ||||||
17 | retail customers in the electric utility's service area that | ||||||
18 | do not take delivery services but that take electric power or | ||||||
19 | energy from an alternative retail electric supplier or from an | ||||||
20 | electric utility other than the electric utility in whose | ||||||
21 | service area the customer is located. Such charges shall be | ||||||
22 | calculated, in accordance with the definition of transition | ||||||
23 | charges in Section 16-102, for the period of time that the | ||||||
24 | customer would be obligated to pay transition charges if it | ||||||
25 | were taking delivery services, except that no deduction for | ||||||
26 | delivery services revenues shall be made in such calculation, |
| |||||||
| |||||||
1 | and usage data from the customer's class shall be used where | ||||||
2 | historical usage data is not available for the individual | ||||||
3 | customer. The customer shall be obligated to pay such charges | ||||||
4 | on a lump sum basis on or before the date on which the customer | ||||||
5 | commences to take service from the alternative retail electric | ||||||
6 | supplier or other electric utility, provided, that the | ||||||
7 | electric utility in whose service area the customer is located | ||||||
8 | shall offer the customer the option of signing a contract | ||||||
9 | pursuant to which the customer pays such charges ratably over | ||||||
10 | the period in which the charges would otherwise have applied. | ||||||
11 | (i) An electric utility shall be entitled to add to the | ||||||
12 | bills of delivery services customers charges pursuant to | ||||||
13 | Sections 9-221, 9-222 (except as provided in Section 9-222.1), | ||||||
14 | and Section 16-114 of this Act, Section 5-5 of the Electricity | ||||||
15 | Infrastructure Maintenance Fee Law, Section 6-5 of the | ||||||
16 | Renewable Energy, Energy Efficiency, and Coal Resources | ||||||
17 | Development Law of 1997, and Section 13 of the Energy | ||||||
18 | Assistance Act. | ||||||
19 | (i-5) An electric utility required to impose the Coal to | ||||||
20 | Solar and Energy Storage Initiative Charge provided for in | ||||||
21 | subsection (c-5) of Section 1-75 of the Illinois Power Agency | ||||||
22 | Act shall add such charge to the bills of its delivery services | ||||||
23 | customers pursuant to the terms of a tariff conforming to the | ||||||
24 | requirements of subsection (c-5) of Section 1-75 of the | ||||||
25 | Illinois Power Agency Act and this subsection (i-5) and filed | ||||||
26 | with and approved by the Commission. The electric utility |
| |||||||
| |||||||
1 | shall file its proposed tariff with the Commission on or | ||||||
2 | before July 1, 2022 to be effective, after review and approval | ||||||
3 | or modification by the Commission, beginning January 1, 2023. | ||||||
4 | On or before December 1, 2022, the Commission shall review the | ||||||
5 | electric utility's proposed tariff, including by conducting a | ||||||
6 | docketed proceeding if deemed necessary by the Commission, and | ||||||
7 | shall approve the proposed tariff or direct the electric | ||||||
8 | utility to make modifications the Commission finds necessary | ||||||
9 | for the tariff to conform to the requirements of subsection | ||||||
10 | (c-5) of Section 1-75 of the Illinois Power Agency Act and this | ||||||
11 | subsection (i-5). The electric utility's tariff shall provide | ||||||
12 | for imposition of the Coal to Solar and Energy Storage | ||||||
13 | Initiative Charge on a per-kilowatthour basis to all | ||||||
14 | kilowatthours delivered by the electric utility to its | ||||||
15 | delivery services customers. The tariff shall provide for the | ||||||
16 | calculation of the Coal to Solar and Energy Storage Initiative | ||||||
17 | Charge to be in effect for the year beginning January 1, 2023 | ||||||
18 | and each year beginning January 1 thereafter, sufficient to | ||||||
19 | collect the electric utility's estimated payment obligations | ||||||
20 | for the delivery year beginning the following June 1 under | ||||||
21 | contracts for purchase of renewable energy credits entered | ||||||
22 | into pursuant to subsection (c-5) of Section 1-75 of the | ||||||
23 | Illinois Power Agency Act and the obligations of the | ||||||
24 | Department of Commerce and Economic Opportunity, or any | ||||||
25 | successor department or agency, which for purposes of this | ||||||
26 | subsection (i-5) shall be referred to as the Department, to |
| |||||||
| |||||||
1 | make grant payments during such delivery year from the Coal to | ||||||
2 | Solar and Energy Storage Initiative Fund pursuant to grant | ||||||
3 | contracts entered into pursuant to subsection (c-5) of Section | ||||||
4 | 1-75 of the Illinois Power Agency Act, and using the electric | ||||||
5 | utility's kilowatthour deliveries to its delivery services | ||||||
6 | customers during the delivery year ended May 31 of the | ||||||
7 | preceding calendar year. On or before November 1 of each year | ||||||
8 | beginning November 1, 2022, the Department shall notify the | ||||||
9 | electric utilities of the amount of the Department's estimated | ||||||
10 | obligations for grant payments during the delivery year | ||||||
11 | beginning the following June 1 pursuant to grant contracts | ||||||
12 | entered into pursuant to subsection (c-5) of Section 1-75 of | ||||||
13 | the Illinois Power Agency Act; and each electric utility shall | ||||||
14 | incorporate in the calculation of its Coal to Solar and Energy | ||||||
15 | Storage Initiative Charge the fractional portion of the | ||||||
16 | Department's estimated obligations equal to the electric | ||||||
17 | utility's kilowatthour deliveries to its delivery services | ||||||
18 | customers in the delivery year ended the preceding May 31 | ||||||
19 | divided by the aggregate deliveries of both electric utilities | ||||||
20 | to delivery services customers in such delivery year. The | ||||||
21 | electric utility shall remit on a monthly basis to the State | ||||||
22 | Treasurer, for deposit in the Coal to Solar and Energy Storage | ||||||
23 | Initiative Fund provided for in subsection (c-5) of Section | ||||||
24 | 1-75 of the Illinois Power Agency Act, the electric utility's | ||||||
25 | collections of the Coal to Solar and Energy Storage Initiative | ||||||
26 | Charge estimated to be needed by the Department for grant |
| |||||||
| |||||||
1 | payments pursuant to grant contracts entered into pursuant to | ||||||
2 | subsection (c-5) of Section 1-75 of the Illinois Power Agency | ||||||
3 | Act. The initial charge under the electric utility's tariff | ||||||
4 | shall be effective for kilowatthours delivered beginning | ||||||
5 | January 1, 2023, and thereafter shall be revised to be | ||||||
6 | effective January 1, 2024 and each January 1 thereafter, based | ||||||
7 | on the payment obligations for the delivery year beginning the | ||||||
8 | following June 1. The tariff shall provide for the electric | ||||||
9 | utility to make an annual filing with the Commission on or | ||||||
10 | before November 15 of each year, beginning in 2023, setting | ||||||
11 | forth the Coal to Solar and Energy Storage Initiative Charge | ||||||
12 | to be in effect for the year beginning the following January 1. | ||||||
13 | The electric utility's tariff shall also provide that the | ||||||
14 | electric utility shall make a filing with the Commission on or | ||||||
15 | before August 1 of each year beginning in 2024 setting forth a | ||||||
16 | reconciliation, for the delivery year ended the preceding May | ||||||
17 | 31, of the electric utility's collections of the Coal to Solar | ||||||
18 | and Energy Storage Initiative Charge against actual payments | ||||||
19 | for renewable energy credits pursuant to contracts entered | ||||||
20 | into, and the actual grant payments by the Department pursuant | ||||||
21 | to grant contracts entered into, pursuant to subsection (c-5) | ||||||
22 | of Section 1-75 of the Illinois Power Agency Act. The tariff | ||||||
23 | shall provide that any excess or shortfall of collections to | ||||||
24 | payments shall be deducted from or added to, on a | ||||||
25 | per-kilowatthour basis, the Coal to Solar and Energy Storage | ||||||
26 | Initiative Charge, over the 6-month period beginning October 1 |
| |||||||
| |||||||
1 | of that calendar year. | ||||||
2 | (j) If a retail customer that obtains electric power and | ||||||
3 | energy from cogeneration or self-generation facilities | ||||||
4 | installed for its own use on or before January 1, 1997, | ||||||
5 | subsequently takes service from an alternative retail electric | ||||||
6 | supplier or an electric utility other than the electric | ||||||
7 | utility in whose service area the customer is located for any | ||||||
8 | portion of the customer's electric power and energy | ||||||
9 | requirements formerly obtained from those facilities | ||||||
10 | (including that amount purchased from the utility in lieu of | ||||||
11 | such generation and not as standby power purchases, under a | ||||||
12 | cogeneration displacement tariff in effect as of the effective | ||||||
13 | date of this amendatory Act of 1997), the transition charges | ||||||
14 | otherwise applicable pursuant to subsections (f), (g), or (h) | ||||||
15 | of this Section shall not be applicable in any year to that | ||||||
16 | portion of the customer's electric power and energy | ||||||
17 | requirements formerly obtained from those facilities, | ||||||
18 | provided, that for purposes of this subsection (j), such | ||||||
19 | portion shall not exceed the average number of kilowatt-hours | ||||||
20 | per year obtained from the cogeneration or self-generation | ||||||
21 | facilities during the 3 years prior to the date on which the | ||||||
22 | customer became eligible for delivery services, except as | ||||||
23 | provided in subsection (f) of Section 16-110. | ||||||
24 | (k) The electric utility shall be entitled to recover | ||||||
25 | through tariffed charges all of the costs associated with the | ||||||
26 | purchase of zero emission credits from zero emission |
| |||||||
| |||||||
1 | facilities to meet the requirements of subsection (d-5) of | ||||||
2 | Section 1-75 of the Illinois Power Agency Act and all of the | ||||||
3 | costs associated with the purchase of carbon mitigation | ||||||
4 | credits from carbon-free energy resources to meet the | ||||||
5 | requirements of subsection (d-10) of Section 1-75 of the | ||||||
6 | Illinois Power Agency Act. Such costs shall include the costs | ||||||
7 | of procuring the zero emission credits and carbon mitigation | ||||||
8 | credits from carbon-free energy resources, as well as the | ||||||
9 | reasonable costs that the utility incurs as part of the | ||||||
10 | procurement processes and to implement and comply with plans | ||||||
11 | and processes approved by the Commission under subsections | ||||||
12 | (d-5) and (d-10). The costs shall be allocated across all | ||||||
13 | retail customers through a single, uniform cents per | ||||||
14 | kilowatt-hour charge applicable to all retail customers, which | ||||||
15 | shall appear as a separate line item on each customer's bill. | ||||||
16 | Beginning June 1, 2017, the electric utility shall be entitled | ||||||
17 | to recover through tariffed charges all of the costs | ||||||
18 | associated with the purchase of renewable energy resources to | ||||||
19 | meet the renewable energy resource standards of subsection (c) | ||||||
20 | of Section 1-75 of the Illinois Power Agency Act, under | ||||||
21 | procurement plans as approved in accordance with that Section | ||||||
22 | and Section 16-111.5 of this Act. Such costs shall include the | ||||||
23 | costs of procuring the renewable energy resources, as well as | ||||||
24 | the reasonable costs that the utility incurs as part of the | ||||||
25 | procurement processes and to implement and comply with plans | ||||||
26 | and processes approved by the Commission under such Sections. |
| |||||||
| |||||||
1 | The costs associated with the purchase of renewable energy | ||||||
2 | resources shall be allocated across all retail customers in | ||||||
3 | proportion to the amount of renewable energy resources the | ||||||
4 | utility procures for such customers through a single, uniform | ||||||
5 | cents per kilowatt-hour charge applicable to such retail | ||||||
6 | customers, which shall appear as a separate line item on each | ||||||
7 | such customer's bill. The credits, costs, and penalties | ||||||
8 | associated with the self-direct renewable portfolio standard | ||||||
9 | compliance program described in subparagraph (R) of paragraph | ||||||
10 | (1) of subsection (c) of Section 1-75 of the Illinois Power | ||||||
11 | Agency Act shall be allocated to approved eligible self-direct | ||||||
12 | customers by the utility in a cents per kilowatt-hour credit, | ||||||
13 | cost, or penalty, which shall appear as a separate line item on | ||||||
14 | each such customer's bill. | ||||||
15 | Beginning on June 1, 2024, the electric utility shall be | ||||||
16 | entitled to recover through tariffed charges all of the costs | ||||||
17 | associated with the purchase of energy storage credits to meet | ||||||
18 | the energy storage standards of Section 1-93 of the Illinois | ||||||
19 | Power Agency Act under procurement plans approved in | ||||||
20 | accordance with that Section and Section 16-111.5. The costs | ||||||
21 | shall include the costs of procuring the energy storage | ||||||
22 | credits and the reasonable costs that the utility incurs as | ||||||
23 | part of the procurement processes and implementing and | ||||||
24 | complying with plans and processes approved by the Commission. | ||||||
25 | The costs associated with the purchase of energy storage | ||||||
26 | credits shall be allocated across all retail customers in |
| |||||||
| |||||||
1 | proportion to the amount of energy storage credits the | ||||||
2 | electric utility procures for the customers through a single, | ||||||
3 | uniform cents per kilowatt-hour charge applicable to the | ||||||
4 | retail customers, that shall appear as a separate line item on | ||||||
5 | each customer's bill. | ||||||
6 | Notwithstanding whether the Commission has approved the | ||||||
7 | initial long-term renewable resources procurement plan as of | ||||||
8 | June 1, 2017, an electric utility shall place new tariffed | ||||||
9 | charges into effect beginning with the June 2017 monthly | ||||||
10 | billing period, to the extent practicable, to begin recovering | ||||||
11 | the costs of procuring renewable energy resources, as those | ||||||
12 | charges are calculated under the limitations described in | ||||||
13 | subparagraph (E) of paragraph (1) of subsection (c) of Section | ||||||
14 | 1-75 of the Illinois Power Agency Act. Notwithstanding the | ||||||
15 | date on which the utility places such new tariffed charges | ||||||
16 | into effect, the utility shall be permitted to collect the | ||||||
17 | charges under such tariff as if the tariff had been in effect | ||||||
18 | beginning with the first day of the June 2017 monthly billing | ||||||
19 | period. For the delivery years commencing June 1, 2017, June | ||||||
20 | 1, 2018, June 1, 2019, and each delivery year thereafter, the | ||||||
21 | electric utility shall deposit into a separate interest | ||||||
22 | bearing account of a financial institution the monies | ||||||
23 | collected under the tariffed charges. Money collected from | ||||||
24 | customers for the procurement of renewable energy resources in | ||||||
25 | a given delivery year may be spent by the utility for the | ||||||
26 | procurement of renewable resources over any of the following 5 |
| |||||||
| |||||||
1 | delivery years, after which unspent money shall be credited | ||||||
2 | back to retail customers. The electric utility shall spend all | ||||||
3 | money collected in earlier delivery years that has not yet | ||||||
4 | been returned to customers, first, before spending money | ||||||
5 | collected in later delivery years. Any interest earned shall | ||||||
6 | be credited back to retail customers under the reconciliation | ||||||
7 | proceeding provided for in this subsection (k), provided that | ||||||
8 | the electric utility shall first be reimbursed from the | ||||||
9 | interest for the administrative costs that it incurs to | ||||||
10 | administer and manage the account. Any taxes due on the funds | ||||||
11 | in the account, or interest earned on it, will be paid from the | ||||||
12 | account or, if insufficient monies are available in the | ||||||
13 | account, from the monies collected under the tariffed charges | ||||||
14 | to recover the costs of procuring renewable energy resources. | ||||||
15 | Monies deposited in the account shall be subject to the | ||||||
16 | review, reconciliation, and true-up process described in this | ||||||
17 | subsection (k) that is applicable to the funds collected and | ||||||
18 | costs incurred for the procurement of renewable energy | ||||||
19 | resources. | ||||||
20 | The electric utility shall be entitled to recover all of | ||||||
21 | the costs identified in this subsection (k) through automatic | ||||||
22 | adjustment clause tariffs applicable to all of the utility's | ||||||
23 | retail customers that allow the electric utility to adjust its | ||||||
24 | tariffed charges consistent with this subsection (k). The | ||||||
25 | determination as to whether any excess funds were collected | ||||||
26 | during a given delivery year for the purchase of renewable |
| |||||||
| |||||||
1 | energy resources, and the crediting of any excess funds back | ||||||
2 | to retail customers, shall not be made until after the close of | ||||||
3 | the delivery year, which will ensure that the maximum amount | ||||||
4 | of funds is available to implement the approved long-term | ||||||
5 | renewable resources procurement plan during a given delivery | ||||||
6 | year. The amount of excess funds eligible to be credited back | ||||||
7 | to retail customers shall be reduced by an amount equal to the | ||||||
8 | payment obligations required by any contracts entered into by | ||||||
9 | an electric utility under contracts described in subsection | ||||||
10 | (b) of Section 1-56 and subsection (c) of Section 1-75 of the | ||||||
11 | Illinois Power Agency Act, even if such payments have not yet | ||||||
12 | been made and regardless of the delivery year in which those | ||||||
13 | payment obligations were incurred. Notwithstanding anything to | ||||||
14 | the contrary, including in tariffs authorized by this | ||||||
15 | subsection (k) in effect before the effective date of this | ||||||
16 | amendatory Act of the 102nd General Assembly, all unspent | ||||||
17 | funds as of May 31, 2021, excluding any funds credited to | ||||||
18 | customers during any utility billing cycle that commences | ||||||
19 | prior to the effective date of this amendatory Act of the 102nd | ||||||
20 | General Assembly, shall remain in the utility account and | ||||||
21 | shall on a first in, first out basis be used toward utility | ||||||
22 | payment obligations under contracts described in subsection | ||||||
23 | (b) of Section 1-56 and subsection (c) of Section 1-75 of the | ||||||
24 | Illinois Power Agency Act. The electric utility's collections | ||||||
25 | under such automatic adjustment clause tariffs to recover the | ||||||
26 | costs of renewable energy resources, zero emission credits |
| |||||||
| |||||||
1 | from zero emission facilities, and carbon mitigation credits | ||||||
2 | from carbon-free energy resources shall be subject to separate | ||||||
3 | annual review, reconciliation, and true-up against actual | ||||||
4 | costs by the Commission under a procedure that shall be | ||||||
5 | specified in the electric utility's automatic adjustment | ||||||
6 | clause tariffs and that shall be approved by the Commission in | ||||||
7 | connection with its approval of such tariffs. The procedure | ||||||
8 | shall provide that any difference between the electric | ||||||
9 | utility's collections for zero emission credits and carbon | ||||||
10 | mitigation credits under the automatic adjustment charges for | ||||||
11 | an annual period and the electric utility's actual costs of | ||||||
12 | zero emission credits from zero emission facilities and carbon | ||||||
13 | mitigation credits from carbon-free energy resources for that | ||||||
14 | same annual period shall be refunded to or collected from, as | ||||||
15 | applicable, the electric utility's retail customers in | ||||||
16 | subsequent periods. | ||||||
17 | Nothing in this subsection (k) is intended to affect, | ||||||
18 | limit, or change the right of the electric utility to recover | ||||||
19 | the costs associated with the procurement of renewable energy | ||||||
20 | resources for periods commencing before, on, or after June 1, | ||||||
21 | 2017, as otherwise provided in the Illinois Power Agency Act. | ||||||
22 | The funding available under this subsection (k), if any, | ||||||
23 | for the programs described under subsection (b) of Section | ||||||
24 | 1-56 of the Illinois Power Agency Act shall not reduce the | ||||||
25 | amount of funding for the programs described in subparagraph | ||||||
26 | (O) of paragraph (1) of subsection (c) of Section 1-75 of the |
| |||||||
| |||||||
1 | Illinois Power Agency Act. If funding is available under this | ||||||
2 | subsection (k) for programs described under subsection (b) of | ||||||
3 | Section 1-56 of the Illinois Power Agency Act, then the | ||||||
4 | long-term renewable resources plan shall provide for the | ||||||
5 | Agency to procure contracts in an amount that does not exceed | ||||||
6 | the funding, and the contracts approved by the Commission | ||||||
7 | shall be executed by the applicable utility or utilities. | ||||||
8 | (l) A utility that has terminated any contract executed | ||||||
9 | under subsection (d-5) or (d-10) of Section 1-75 of the | ||||||
10 | Illinois Power Agency Act shall be entitled to recover any | ||||||
11 | remaining balance associated with the purchase of zero | ||||||
12 | emission credits prior to such termination, and such utility | ||||||
13 | shall also apply a credit to its retail customer bills in the | ||||||
14 | event of any over-collection. | ||||||
15 | (m)(1) An electric utility that recovers its costs of | ||||||
16 | procuring zero emission credits from zero emission facilities | ||||||
17 | through a cents-per-kilowatthour charge under subsection (k) | ||||||
18 | of this Section shall be subject to the requirements of this | ||||||
19 | subsection (m). Notwithstanding anything to the contrary, such | ||||||
20 | electric utility shall, beginning on April 30, 2018, and each | ||||||
21 | April 30 thereafter until April 30, 2026, calculate whether | ||||||
22 | any reduction must be applied to such cents-per-kilowatthour | ||||||
23 | charge that is paid by retail customers of the electric | ||||||
24 | utility that have opted out of subsections (a) through (j) of | ||||||
25 | Section 8-103B of this Act under subsection (l) of Section | ||||||
26 | 8-103B. Such charge shall be reduced for such customers for |
| |||||||
| |||||||
1 | the next delivery year commencing on June 1 based on the amount | ||||||
2 | necessary, if any, to limit the annual estimated average net | ||||||
3 | increase for the prior calendar year due to the future energy | ||||||
4 | investment costs to no more than 1.3% of 5.98 cents per | ||||||
5 | kilowatt-hour, which is the average amount paid per | ||||||
6 | kilowatthour for electric service during the year ending | ||||||
7 | December 31, 2015 by Illinois industrial retail customers, as | ||||||
8 | reported to the Edison Electric Institute. | ||||||
9 | The calculations required by this subsection (m) shall be | ||||||
10 | made only once for each year, and no subsequent rate impact | ||||||
11 | determinations shall be made. | ||||||
12 | (2) For purposes of this Section, "future energy | ||||||
13 | investment costs" shall be calculated by subtracting the | ||||||
14 | cents-per-kilowatthour charge identified in subparagraph (A) | ||||||
15 | of this paragraph (2) from the sum of the | ||||||
16 | cents-per-kilowatthour charges identified in subparagraph (B) | ||||||
17 | of this paragraph (2): | ||||||
18 | (A) The cents-per-kilowatthour charge identified in | ||||||
19 | the electric utility's tariff placed into effect under | ||||||
20 | Section 8-103 of the Public Utilities Act that, on | ||||||
21 | December 1, 2016, was applicable to those retail customers | ||||||
22 | that have opted out of subsections (a) through (j) of | ||||||
23 | Section 8-103B of this Act under subsection (l) of Section | ||||||
24 | 8-103B. | ||||||
25 | (B) The sum of the following cents-per-kilowatthour | ||||||
26 | charges applicable to those retail customers that have |
| |||||||
| |||||||
1 | opted out of subsections (a) through (j) of Section 8-103B | ||||||
2 | of this Act under subsection (l) of Section 8-103B, | ||||||
3 | provided that if one or more of the following charges has | ||||||
4 | been in effect and applied to such customers for more than | ||||||
5 | one calendar year, then each charge shall be equal to the | ||||||
6 | average of the charges applied over a period that | ||||||
7 | commences with the calendar year ending December 31, 2017 | ||||||
8 | and ends with the most recently completed calendar year | ||||||
9 | prior to the calculation required by this subsection (m): | ||||||
10 | (i) the cents-per-kilowatthour charge to recover | ||||||
11 | the costs incurred by the utility under subsection | ||||||
12 | (d-5) of Section 1-75 of the Illinois Power Agency | ||||||
13 | Act, adjusted for any reductions required under this | ||||||
14 | subsection (m); and | ||||||
15 | (ii) the cents-per-kilowatthour charge to recover | ||||||
16 | the costs incurred by the utility under Section | ||||||
17 | 16-107.6 of the Public Utilities Act. | ||||||
18 | If no charge was applied for a given calendar year | ||||||
19 | under item (i) or (ii) of this subparagraph (B), then the | ||||||
20 | value of the charge for that year shall be zero. | ||||||
21 | (3) If a reduction is required by the calculation | ||||||
22 | performed under this subsection (m), then the amount of the | ||||||
23 | reduction shall be multiplied by the number of years reflected | ||||||
24 | in the averages calculated under subparagraph (B) of paragraph | ||||||
25 | (2) of this subsection (m). Such reduction shall be applied to | ||||||
26 | the cents-per-kilowatthour charge that is applicable to those |
| |||||||
| |||||||
1 | retail customers that have opted out of subsections (a) | ||||||
2 | through (j) of Section 8-103B of this Act under subsection (l) | ||||||
3 | of Section 8-103B beginning with the next delivery year | ||||||
4 | commencing after the date of the calculation required by this | ||||||
5 | subsection (m). | ||||||
6 | (4) The electric utility shall file a notice with the | ||||||
7 | Commission on May 1 of 2018 and each May 1 thereafter until May | ||||||
8 | 1, 2026 containing the reduction, if any, which must be | ||||||
9 | applied for the delivery year which begins in the year of the | ||||||
10 | filing. The notice shall contain the calculations made | ||||||
11 | pursuant to this Section. By October 1 of each year beginning | ||||||
12 | in 2018, each electric utility shall notify the Commission if | ||||||
13 | it appears, based on an estimate of the calculation required | ||||||
14 | in this subsection (m), that a reduction will be required in | ||||||
15 | the next year. | ||||||
16 | (Source: P.A. 102-662, eff. 9-15-21.)
| ||||||
17 | (220 ILCS 5/16-111.5) | ||||||
18 | Sec. 16-111.5. Provisions relating to procurement. | ||||||
19 | (a) An electric utility that on December 31, 2005 served | ||||||
20 | at least 100,000 customers in Illinois shall procure power and | ||||||
21 | energy for its eligible retail customers in accordance with | ||||||
22 | the applicable provisions set forth in Section 1-75 of the | ||||||
23 | Illinois Power Agency Act and this Section. Beginning with the | ||||||
24 | delivery year commencing on June 1, 2024, an electric utility | ||||||
25 | serving over 100,000 customers in Illinois shall also procure |
| |||||||
| |||||||
1 | energy storage credits in accordance with the applicable | ||||||
2 | provisions of Sections 1-75 and 1-93 of the Illinois Power | ||||||
3 | Agency Act and this Section. Beginning with the delivery year | ||||||
4 | commencing on June 1, 2017, such electric utility shall also | ||||||
5 | procure zero emission credits from zero emission facilities in | ||||||
6 | accordance with the applicable provisions set forth in Section | ||||||
7 | 1-75 of the Illinois Power Agency Act, and, for years | ||||||
8 | beginning on or after June 1, 2017, the utility shall procure | ||||||
9 | renewable energy resources in accordance with the applicable | ||||||
10 | provisions set forth in Section 1-75 of the Illinois Power | ||||||
11 | Agency Act and this Section. Beginning with the delivery year | ||||||
12 | commencing on June 1, 2022, an electric utility serving over | ||||||
13 | 3,000,000 customers shall also procure carbon mitigation | ||||||
14 | credits from carbon-free energy resources in accordance with | ||||||
15 | the applicable provisions set forth in Section 1-75 of the | ||||||
16 | Illinois Power Agency Act and this Section. A small | ||||||
17 | multi-jurisdictional electric utility that on December 31, | ||||||
18 | 2005 served less than 100,000 customers in Illinois may elect | ||||||
19 | to procure power and energy for all or a portion of its | ||||||
20 | eligible Illinois retail customers in accordance with the | ||||||
21 | applicable provisions set forth in this Section and Section | ||||||
22 | 1-75 of the Illinois Power Agency Act. This Section shall not | ||||||
23 | apply to a small multi-jurisdictional utility until such time | ||||||
24 | as a small multi-jurisdictional utility requests the Illinois | ||||||
25 | Power Agency to prepare a procurement plan for its eligible | ||||||
26 | retail customers. "Eligible retail customers" for the purposes |
| |||||||
| |||||||
1 | of this Section means those retail customers that purchase | ||||||
2 | power and energy from the electric utility under fixed-price | ||||||
3 | bundled service tariffs, other than those retail customers | ||||||
4 | whose service is declared or deemed competitive under Section | ||||||
5 | 16-113 and those other customer groups specified in this | ||||||
6 | Section, including self-generating customers, customers | ||||||
7 | electing hourly pricing, or those customers who are otherwise | ||||||
8 | ineligible for fixed-price bundled tariff service. For those | ||||||
9 | customers that are excluded from the procurement plan's | ||||||
10 | electric supply service requirements, and the utility shall | ||||||
11 | procure any supply requirements, including capacity, ancillary | ||||||
12 | services, and hourly priced energy, in the applicable markets | ||||||
13 | as needed to serve those customers, provided that the utility | ||||||
14 | may include in its procurement plan load requirements for the | ||||||
15 | load that is associated with those retail customers whose | ||||||
16 | service has been declared or deemed competitive pursuant to | ||||||
17 | Section 16-113 of this Act to the extent that those customers | ||||||
18 | are purchasing power and energy during one of the transition | ||||||
19 | periods identified in subsection (b) of Section 16-113 of this | ||||||
20 | Act. | ||||||
21 | (b) A procurement plan shall be prepared for each electric | ||||||
22 | utility consistent with the applicable requirements of the | ||||||
23 | Illinois Power Agency Act and this Section. For purposes of | ||||||
24 | this Section, Illinois electric utilities that are affiliated | ||||||
25 | by virtue of a common parent company are considered to be a | ||||||
26 | single electric utility. Small multi-jurisdictional utilities |
| |||||||
| |||||||
1 | may request a procurement plan for a portion of or all of its | ||||||
2 | Illinois load. Each procurement plan shall analyze the | ||||||
3 | projected balance of supply and demand for those retail | ||||||
4 | customers to be included in the plan's electric supply service | ||||||
5 | requirements over a 5-year period, with the first planning | ||||||
6 | year beginning on June 1 of the year following the year in | ||||||
7 | which the plan is filed. The plan shall specifically identify | ||||||
8 | the wholesale products to be procured following plan approval, | ||||||
9 | and shall follow all the requirements set forth in the Public | ||||||
10 | Utilities Act and all applicable State and federal laws, | ||||||
11 | statutes, rules, or regulations, as well as Commission orders. | ||||||
12 | Nothing in this Section precludes consideration of contracts | ||||||
13 | longer than 5 years and related forecast data. Unless | ||||||
14 | specified otherwise in this Section, in the procurement plan | ||||||
15 | or in the implementing tariff, any procurement occurring in | ||||||
16 | accordance with this plan shall be competitively bid through a | ||||||
17 | request for proposals process. Approval and implementation of | ||||||
18 | the procurement plan shall be subject to review and approval | ||||||
19 | by the Commission according to the provisions set forth in | ||||||
20 | this Section. A procurement plan shall include each of the | ||||||
21 | following components: | ||||||
22 | (1) Hourly load analysis. This analysis shall include: | ||||||
23 | (i) multi-year historical analysis of hourly | ||||||
24 | loads; | ||||||
25 | (ii) switching trends and competitive retail | ||||||
26 | market analysis; |
| |||||||
| |||||||
1 | (iii) known or projected changes to future loads; | ||||||
2 | and | ||||||
3 | (iv) growth forecasts by customer class ; and . | ||||||
4 | (v) the impact of load reduction and peak load | ||||||
5 | reduction through programs authorized by Sections | ||||||
6 | 16-107.9, 16-107.10, and 16-107.11. | ||||||
7 | (2) Analysis of the impact of any demand side and | ||||||
8 | renewable energy initiatives. This analysis shall include: | ||||||
9 | (i) the impact of demand response programs and | ||||||
10 | energy efficiency programs, both current and | ||||||
11 | projected; for small multi-jurisdictional utilities, | ||||||
12 | the impact of demand response and energy efficiency | ||||||
13 | programs approved pursuant to Section 8-408 of this | ||||||
14 | Act, both current and projected; and | ||||||
15 | (ii) supply side needs that are projected to be | ||||||
16 | offset by purchases of renewable energy resources, if | ||||||
17 | any. | ||||||
18 | (3) A plan for meeting the expected load requirements | ||||||
19 | that will not be met through preexisting contracts. This | ||||||
20 | plan shall include: | ||||||
21 | (i) definitions of the different Illinois retail | ||||||
22 | customer classes for which supply is being purchased; | ||||||
23 | (ii) the proposed mix of demand-response products | ||||||
24 | for which contracts will be executed during the next | ||||||
25 | year. For small multi-jurisdictional electric | ||||||
26 | utilities that on December 31, 2005 served fewer than |
| |||||||
| |||||||
1 | 100,000 customers in Illinois, these shall be defined | ||||||
2 | as demand-response products offered in an energy | ||||||
3 | efficiency plan approved pursuant to Section 8-408 of | ||||||
4 | this Act. The cost-effective demand-response measures | ||||||
5 | shall be procured whenever the cost is lower than | ||||||
6 | procuring comparable capacity products, provided that | ||||||
7 | such products shall: | ||||||
8 | (A) be procured by a demand-response provider | ||||||
9 | from those retail customers included in the plan's | ||||||
10 | electric supply service requirements; | ||||||
11 | (B) at least satisfy the demand-response | ||||||
12 | requirements of the regional transmission | ||||||
13 | organization market in which the utility's service | ||||||
14 | territory is located, including, but not limited | ||||||
15 | to, any applicable capacity or dispatch | ||||||
16 | requirements; | ||||||
17 | (C) provide for customers' participation in | ||||||
18 | the stream of benefits produced by the | ||||||
19 | demand-response products; | ||||||
20 | (D) provide for reimbursement by the | ||||||
21 | demand-response provider of the utility for any | ||||||
22 | costs incurred as a result of the failure of the | ||||||
23 | supplier of such products to perform its | ||||||
24 | obligations thereunder; and | ||||||
25 | (E) meet the same credit requirements as apply | ||||||
26 | to suppliers of capacity, in the applicable |
| |||||||
| |||||||
1 | regional transmission organization market; | ||||||
2 | (iii) monthly forecasted system supply | ||||||
3 | requirements, including expected minimum, maximum, and | ||||||
4 | average values for the planning period; | ||||||
5 | (iv) the proposed mix and selection of standard | ||||||
6 | wholesale products for which contracts will be | ||||||
7 | executed during the next year, separately or in | ||||||
8 | combination, to meet that portion of its load | ||||||
9 | requirements not met through pre-existing contracts, | ||||||
10 | including but not limited to monthly 5 x 16 peak period | ||||||
11 | block energy, monthly off-peak wrap energy, monthly 7 | ||||||
12 | x 24 energy, annual 5 x 16 energy, other standardized | ||||||
13 | energy or capacity products designed to provide | ||||||
14 | eligible retail customer benefits from commercially | ||||||
15 | deployed advanced technologies including but not | ||||||
16 | limited to high voltage direct current converter | ||||||
17 | stations, as such term is defined in Section 1-10 of | ||||||
18 | the Illinois Power Agency Act, whether or not such | ||||||
19 | product is currently available in wholesale markets, | ||||||
20 | annual off-peak wrap energy, annual 7 x 24 energy, | ||||||
21 | monthly capacity, annual capacity, peak load capacity | ||||||
22 | obligations, capacity purchase plan, and ancillary | ||||||
23 | services; | ||||||
24 | (v) proposed term structures for each wholesale | ||||||
25 | product type included in the proposed procurement plan | ||||||
26 | portfolio of products; and |
| |||||||
| |||||||
1 | (vi) an assessment of the price risk, load | ||||||
2 | uncertainty, and other factors that are associated | ||||||
3 | with the proposed procurement plan; this assessment, | ||||||
4 | to the extent possible, shall include an analysis of | ||||||
5 | the following factors: contract terms, time frames for | ||||||
6 | securing products or services, fuel costs, weather | ||||||
7 | patterns, transmission costs, market conditions, and | ||||||
8 | the governmental regulatory environment; the proposed | ||||||
9 | procurement plan shall also identify alternatives for | ||||||
10 | those portfolio measures that are identified as having | ||||||
11 | significant price risk and mitigation in the form of | ||||||
12 | additional retail customer and ratepayer price, | ||||||
13 | reliability, and environmental benefits from | ||||||
14 | standardized energy products delivered from | ||||||
15 | commercially deployed advanced technologies, | ||||||
16 | including, but not limited to, high voltage direct | ||||||
17 | current converter stations, as such term is defined in | ||||||
18 | Section 1-10 of the Illinois Power Agency Act, whether | ||||||
19 | or not such product is currently available in | ||||||
20 | wholesale markets. | ||||||
21 | (4) Proposed procedures for balancing loads. The | ||||||
22 | procurement plan shall include, for load requirements | ||||||
23 | included in the procurement plan, the process for (i) | ||||||
24 | hourly balancing of supply and demand and (ii) the | ||||||
25 | criteria for portfolio re-balancing in the event of | ||||||
26 | significant shifts in load. |
| |||||||
| |||||||
1 | (5) Long-Term Renewable Resources Procurement Plan. | ||||||
2 | The Agency shall prepare a long-term renewable resources | ||||||
3 | procurement plan for the procurement of renewable energy | ||||||
4 | credits under Sections 1-56 and 1-75 of the Illinois Power | ||||||
5 | Agency Act for delivery beginning in the 2017 delivery | ||||||
6 | year. | ||||||
7 | (i) The initial long-term renewable resources | ||||||
8 | procurement plan and all subsequent revisions shall be | ||||||
9 | subject to review and approval by the Commission. For | ||||||
10 | the purposes of this Section, "delivery year" has the | ||||||
11 | same meaning as in Section 1-10 of the Illinois Power | ||||||
12 | Agency Act. For purposes of this Section, "Agency" | ||||||
13 | shall mean the Illinois Power Agency. | ||||||
14 | (ii) The long-term renewable resources planning | ||||||
15 | process shall be conducted as follows: | ||||||
16 | (A) Electric utilities shall provide a range | ||||||
17 | of load forecasts to the Illinois Power Agency | ||||||
18 | within 45 days of the Agency's request for | ||||||
19 | forecasts, which request shall specify the length | ||||||
20 | and conditions for the forecasts including, but | ||||||
21 | not limited to, the quantity of distributed | ||||||
22 | generation expected to be interconnected for each | ||||||
23 | year. | ||||||
24 | (B) The Agency shall publish for comment the | ||||||
25 | initial long-term renewable resources procurement | ||||||
26 | plan no later than 120 days after the effective |
| |||||||
| |||||||
1 | date of this amendatory Act of the 99th General | ||||||
2 | Assembly and shall review, and may revise, the | ||||||
3 | plan at least every 2 years thereafter. To the | ||||||
4 | extent practicable, the Agency shall review and | ||||||
5 | propose any revisions to the long-term renewable | ||||||
6 | energy resources procurement plan in conjunction | ||||||
7 | with the Agency's other planning and approval | ||||||
8 | processes conducted under this Section. The | ||||||
9 | initial long-term renewable resources procurement | ||||||
10 | plan shall: | ||||||
11 | (aa) Identify the procurement programs and | ||||||
12 | competitive procurement events consistent with | ||||||
13 | the applicable requirements of the Illinois | ||||||
14 | Power Agency Act and shall be designed to | ||||||
15 | achieve the goals set forth in subsection (c) | ||||||
16 | of Section 1-75 of that Act. | ||||||
17 | (bb) Include a schedule for procurements | ||||||
18 | for renewable energy credits from | ||||||
19 | utility-scale wind projects, utility-scale | ||||||
20 | solar projects, and brownfield site | ||||||
21 | photovoltaic projects consistent with | ||||||
22 | subparagraph (G) of paragraph (1) of | ||||||
23 | subsection (c) of Section 1-75 of the Illinois | ||||||
24 | Power Agency Act. | ||||||
25 | (cc) Identify the process whereby the | ||||||
26 | Agency will submit to the Commission for |
| |||||||
| |||||||
1 | review and approval the proposed contracts to | ||||||
2 | implement the programs required by such plan. | ||||||
3 | Copies of the initial long-term renewable | ||||||
4 | resources procurement plan and all subsequent | ||||||
5 | revisions shall be posted and made publicly | ||||||
6 | available on the Agency's and Commission's | ||||||
7 | websites, and copies shall also be provided to | ||||||
8 | each affected electric utility. An affected | ||||||
9 | utility and other interested parties shall have 45 | ||||||
10 | days following the date of posting to provide | ||||||
11 | comment to the Agency on the initial long-term | ||||||
12 | renewable resources procurement plan and all | ||||||
13 | subsequent revisions. All comments submitted to | ||||||
14 | the Agency shall be specific, supported by data or | ||||||
15 | other detailed analyses, and, if objecting to all | ||||||
16 | or a portion of the procurement plan, accompanied | ||||||
17 | by specific alternative wording or proposals. All | ||||||
18 | comments shall be posted on the Agency's and | ||||||
19 | Commission's websites. During this 45-day comment | ||||||
20 | period, the Agency shall hold at least one public | ||||||
21 | hearing within each utility's service area that is | ||||||
22 | subject to the requirements of this paragraph (5) | ||||||
23 | for the purpose of receiving public comment. | ||||||
24 | Within 21 days following the end of the 45-day | ||||||
25 | review period, the Agency may revise the long-term | ||||||
26 | renewable resources procurement plan based on the |
| |||||||
| |||||||
1 | comments received and shall file the plan with the | ||||||
2 | Commission for review and approval. | ||||||
3 | (C) Within 14 days after the filing of the | ||||||
4 | initial long-term renewable resources procurement | ||||||
5 | plan or any subsequent revisions, any person | ||||||
6 | objecting to the plan may file an objection with | ||||||
7 | the Commission. Within 21 days after the filing of | ||||||
8 | the plan, the Commission shall determine whether a | ||||||
9 | hearing is necessary. The Commission shall enter | ||||||
10 | its order confirming or modifying the initial | ||||||
11 | long-term renewable resources procurement plan or | ||||||
12 | any subsequent revisions within 120 days after the | ||||||
13 | filing of the plan by the Illinois Power Agency. | ||||||
14 | (D) The Commission shall approve the initial | ||||||
15 | long-term renewable resources procurement plan and | ||||||
16 | any subsequent revisions, including expressly the | ||||||
17 | forecast used in the plan and taking into account | ||||||
18 | that funding will be limited to the amount of | ||||||
19 | revenues actually collected by the utilities, if | ||||||
20 | the Commission determines that the plan will | ||||||
21 | reasonably and prudently accomplish the | ||||||
22 | requirements of Section 1-56 and subsection (c) of | ||||||
23 | Section 1-75 of the Illinois Power Agency Act. The | ||||||
24 | Commission shall also approve the process for the | ||||||
25 | submission, review, and approval of the proposed | ||||||
26 | contracts to procure renewable energy credits or |
| |||||||
| |||||||
1 | implement the programs authorized by the | ||||||
2 | Commission pursuant to a long-term renewable | ||||||
3 | resources procurement plan approved under this | ||||||
4 | Section. | ||||||
5 | In approving any long-term renewable resources | ||||||
6 | procurement plan after the effective date of this | ||||||
7 | amendatory Act of the 102nd General Assembly, the | ||||||
8 | Commission shall approve or modify the Agency's | ||||||
9 | proposal for minimum equity standards pursuant to | ||||||
10 | subsection (c-10) of Section 1-75 of the Illinois | ||||||
11 | Power Agency Act. The Commission shall consider | ||||||
12 | any analysis performed by the Agency in developing | ||||||
13 | its proposal, including past performance, | ||||||
14 | availability of equity eligible contractors, and | ||||||
15 | availability of equity eligible persons at the | ||||||
16 | time the long-term renewable resources procurement | ||||||
17 | plan is approved. | ||||||
18 | (iii) The Agency or third parties contracted by | ||||||
19 | the Agency shall implement all programs authorized by | ||||||
20 | the Commission in an approved long-term renewable | ||||||
21 | resources procurement plan without further review and | ||||||
22 | approval by the Commission. Third parties shall not | ||||||
23 | begin implementing any programs or receive any payment | ||||||
24 | under this Section until the Commission has approved | ||||||
25 | the contract or contracts under the process authorized | ||||||
26 | by the Commission in item (D) of subparagraph (ii) of |
| |||||||
| |||||||
1 | paragraph (5) of this subsection (b) and the third | ||||||
2 | party and the Agency or utility, as applicable, have | ||||||
3 | executed the contract. For those renewable energy | ||||||
4 | credits subject to procurement through a competitive | ||||||
5 | bid process under the plan or under the initial | ||||||
6 | forward procurements for wind and solar resources | ||||||
7 | described in subparagraph (G) of paragraph (1) of | ||||||
8 | subsection (c) of Section 1-75 of the Illinois Power | ||||||
9 | Agency Act, the Agency shall follow the procurement | ||||||
10 | process specified in the provisions relating to | ||||||
11 | electricity procurement in subsections (e) through (i) | ||||||
12 | of this Section. | ||||||
13 | (iv) An electric utility shall recover its costs | ||||||
14 | associated with the procurement of renewable energy | ||||||
15 | credits under this Section and pursuant to subsection | ||||||
16 | (c-5) of Section 1-75 of the Illinois Power Agency Act | ||||||
17 | through an automatic adjustment clause tariff under | ||||||
18 | subsection (k) or a tariff pursuant to subsection | ||||||
19 | (i-5), as applicable, of Section 16-108 of this Act. A | ||||||
20 | utility shall not be required to advance any payment | ||||||
21 | or pay any amounts under this Section that exceed the | ||||||
22 | actual amount of revenues collected by the utility | ||||||
23 | under paragraph (6) of subsection (c) of Section 1-75 | ||||||
24 | of the Illinois Power Agency Act, subsection (c-5) of | ||||||
25 | Section 1-75 of the Illinois Power Agency Act, and | ||||||
26 | subsection (k) or subsection (i-5), as applicable, of |
| |||||||
| |||||||
1 | Section 16-108 of this Act, and contracts executed | ||||||
2 | under this Section shall expressly incorporate this | ||||||
3 | limitation. | ||||||
4 | (v) For the public interest, safety, and welfare, | ||||||
5 | the Agency and the Commission may adopt rules to carry | ||||||
6 | out the provisions of this Section on an emergency | ||||||
7 | basis immediately following the effective date of this | ||||||
8 | amendatory Act of the 99th General Assembly. | ||||||
9 | (vi) On or before July 1 of each year, the | ||||||
10 | Commission shall hold an informal hearing for the | ||||||
11 | purpose of receiving comments on the prior year's | ||||||
12 | procurement process and any recommendations for | ||||||
13 | change. | ||||||
14 | (6) Long-term energy storage resources procurement | ||||||
15 | plan. The Agency shall prepare an energy storage resources | ||||||
16 | procurement plan for the procurement of energy storage | ||||||
17 | credits in compliance with this Section and Section 1-93 | ||||||
18 | of the Illinois Power Agency Act. | ||||||
19 | (i) The initial energy storage resources | ||||||
20 | procurement plan and all subsequent revisions shall be | ||||||
21 | subject to review and approval by the Commission. For | ||||||
22 | purposes of this Section, "delivery year" has the same | ||||||
23 | meaning as used in Section 1-10 of the Illinois Power | ||||||
24 | Agency Act. In this paragraph, "Agency" means the | ||||||
25 | Illinois Power Agency. | ||||||
26 | (ii) The energy storage resources planning process |
| |||||||
| |||||||
1 | shall be conducted as follows: | ||||||
2 | (A) The Agency shall publish for comment the | ||||||
3 | initial energy storage resources procurement plan | ||||||
4 | no later than 180 days after the effective date of | ||||||
5 | this amendatory Act of the 103rd General Assembly | ||||||
6 | and shall review and may revise the plan at least | ||||||
7 | every 2 years thereafter. To the extent | ||||||
8 | practicable, the Agency shall review and propose | ||||||
9 | any revisions to the energy storage resources | ||||||
10 | procurement plan in conjunction with the Agency's | ||||||
11 | other planning and approval processes conducted | ||||||
12 | under this Section. The initial energy storage | ||||||
13 | resources procurement plan shall: | ||||||
14 | (aa) include a schedule for procurements | ||||||
15 | for energy storage credits from qualified | ||||||
16 | energy storage systems consistent with Section | ||||||
17 | 1-93 of the Illinois Power Agency Act, | ||||||
18 | including proposals for allocation between | ||||||
19 | indexed credits and tolling agreements; | ||||||
20 | (bb) identify the process whereby the | ||||||
21 | Agency will submit to the Commission for | ||||||
22 | review and approval the proposed contracts to | ||||||
23 | implement the programs required by the plan. | ||||||
24 | Copies of the initial energy storage resources | ||||||
25 | procurement plan and all subsequent revisions | ||||||
26 | shall be posted and made publicly available on |
| |||||||
| |||||||
1 | the Agency's and Commission's websites, and | ||||||
2 | copies shall also be provided to each affected | ||||||
3 | electric utility. An affected utility and | ||||||
4 | other interested parties shall have 45 days | ||||||
5 | following the date of posting to provide | ||||||
6 | comment to the Agency on the initial energy | ||||||
7 | storage resources procurement plan and all | ||||||
8 | subsequent revisions. All comments shall be | ||||||
9 | posted on the Agency's and Commission's | ||||||
10 | websites; and | ||||||
11 | (cc) upon solicitation from stakeholders, | ||||||
12 | consider additional procurement approaches | ||||||
13 | that would result in the electric utilities | ||||||
14 | contracting for energy storage to achieve the | ||||||
15 | requirements described in subsection (a); and | ||||||
16 | (B) The Commission shall approve the initial | ||||||
17 | energy storage resources procurement plan and any | ||||||
18 | subsequent revisions if the Commission determines | ||||||
19 | that the plan will reasonably and prudently | ||||||
20 | accomplish the requirements of Section 1-93 of the | ||||||
21 | Illinois Power Agency Act. The Commission shall | ||||||
22 | also approve the process for the submission, | ||||||
23 | review, and approval of the proposed contracts to | ||||||
24 | procure energy storage credits or implement the | ||||||
25 | programs authorized by the Commission pursuant to | ||||||
26 | a long-term energy storage resources procurement |
| |||||||
| |||||||
1 | plan approved under this Section. | ||||||
2 | In approving any long-term energy storage | ||||||
3 | procurement plan after the effective date of this | ||||||
4 | amendatory Act of the 103rd General Assembly, the | ||||||
5 | Commission shall approve or modify the Agency's | ||||||
6 | proposal for minimum equity standards under | ||||||
7 | subsection (c-10) of Section 1-75 of the Illinois | ||||||
8 | Power Agency Act. The Commission shall consider | ||||||
9 | any analysis performed by the Agency in developing | ||||||
10 | its proposal, including past performance, | ||||||
11 | availability of equity eligible contractors, and | ||||||
12 | availability of equity eligible persons at the | ||||||
13 | time the long-term renewable resources procurement | ||||||
14 | plan is approved. | ||||||
15 | (iii) The Agency or third parties contracted by | ||||||
16 | the Agency shall implement all programs authorized by | ||||||
17 | the Commission in an approved long-term energy storage | ||||||
18 | procurement plan without further review and approval | ||||||
19 | by the Commission. Third parties shall not begin | ||||||
20 | implementing any programs or receive any payment under | ||||||
21 | this Section until the Commission has approved the | ||||||
22 | long-term storage contract. | ||||||
23 | (iv) An electric utility shall recover its costs | ||||||
24 | associated with the procurement of energy storage | ||||||
25 | credits under this Section and pursuant to Section | ||||||
26 | 1-93 of the Illinois Power Agency Act through an |
| |||||||
| |||||||
1 | automatic adjustment clause tariff under subsection | ||||||
2 | (k) or a tariff under subsection (i-5), as applicable, | ||||||
3 | of Section 16-108. | ||||||
4 | (b-5) An electric utility that as of January 1, 2019 | ||||||
5 | served more than 300,000 retail customers in this State shall | ||||||
6 | purchase renewable energy credits from new renewable energy | ||||||
7 | facilities constructed at or adjacent to the sites of | ||||||
8 | coal-fueled electric generating facilities in this State in | ||||||
9 | accordance with subsection (c-5) of Section 1-75 of the | ||||||
10 | Illinois Power Agency Act. Except as expressly provided in | ||||||
11 | this Section, the plans and procedures for such procurements | ||||||
12 | shall not be included in the procurement plans provided for in | ||||||
13 | this Section, but rather shall be conducted and implemented | ||||||
14 | solely in accordance with subsection (c-5) of Section 1-75 of | ||||||
15 | the Illinois Power Agency Act. | ||||||
16 | (c) The provisions of this subsection (c) shall not apply | ||||||
17 | to procurements conducted pursuant to subsection (c-5) of | ||||||
18 | Section 1-75 of the Illinois Power Agency Act. However, the | ||||||
19 | Agency may retain a procurement administrator to assist the | ||||||
20 | Agency in planning and carrying out the procurement events and | ||||||
21 | implementing the other requirements specified in such | ||||||
22 | subsection (c-5) of Section 1-75 of the Illinois Power Agency | ||||||
23 | Act, with the costs incurred by the Agency for the procurement | ||||||
24 | administrator to be recovered through fees charged to | ||||||
25 | applicants for selection to sell and deliver renewable energy | ||||||
26 | credits to electric utilities pursuant to subsection (c-5) of |
| |||||||
| |||||||
1 | Section 1-75 of the Illinois Power Agency Act. The procurement | ||||||
2 | process set forth in Section 1-75 of the Illinois Power Agency | ||||||
3 | Act and subsection (e) of this Section shall be administered | ||||||
4 | by a procurement administrator and monitored by a procurement | ||||||
5 | monitor. | ||||||
6 | (1) The procurement administrator shall: | ||||||
7 | (i) design the final procurement process in | ||||||
8 | accordance with Section 1-75 of the Illinois Power | ||||||
9 | Agency Act and subsection (e) of this Section | ||||||
10 | following Commission approval of the procurement plan; | ||||||
11 | (ii) develop benchmarks in accordance with | ||||||
12 | subsection (e)(3) to be used to evaluate bids; these | ||||||
13 | benchmarks shall be submitted to the Commission for | ||||||
14 | review and approval on a confidential basis prior to | ||||||
15 | the procurement event; | ||||||
16 | (iii) serve as the interface between the electric | ||||||
17 | utility and suppliers; | ||||||
18 | (iv) manage the bidder pre-qualification and | ||||||
19 | registration process; | ||||||
20 | (v) obtain the electric utilities' agreement to | ||||||
21 | the final form of all supply contracts and credit | ||||||
22 | collateral agreements; | ||||||
23 | (vi) administer the request for proposals process; | ||||||
24 | (vii) have the discretion to negotiate to | ||||||
25 | determine whether bidders are willing to lower the | ||||||
26 | price of bids that meet the benchmarks approved by the |
| |||||||
| |||||||
1 | Commission; any post-bid negotiations with bidders | ||||||
2 | shall be limited to price only and shall be completed | ||||||
3 | within 24 hours after opening the sealed bids and | ||||||
4 | shall be conducted in a fair and unbiased manner; in | ||||||
5 | conducting the negotiations, there shall be no | ||||||
6 | disclosure of any information derived from proposals | ||||||
7 | submitted by competing bidders; if information is | ||||||
8 | disclosed to any bidder, it shall be provided to all | ||||||
9 | competing bidders; | ||||||
10 | (viii) maintain confidentiality of supplier and | ||||||
11 | bidding information in a manner consistent with all | ||||||
12 | applicable laws, rules, regulations, and tariffs; | ||||||
13 | (ix) submit a confidential report to the | ||||||
14 | Commission recommending acceptance or rejection of | ||||||
15 | bids; | ||||||
16 | (x) notify the utility of contract counterparties | ||||||
17 | and contract specifics; and | ||||||
18 | (xi) administer related contingency procurement | ||||||
19 | events. | ||||||
20 | (2) The procurement monitor, who shall be retained by | ||||||
21 | the Commission, shall: | ||||||
22 | (i) monitor interactions among the procurement | ||||||
23 | administrator, suppliers, and utility; | ||||||
24 | (ii) monitor and report to the Commission on the | ||||||
25 | progress of the procurement process; | ||||||
26 | (iii) provide an independent confidential report |
| |||||||
| |||||||
1 | to the Commission regarding the results of the | ||||||
2 | procurement event; | ||||||
3 | (iv) assess compliance with the procurement plans | ||||||
4 | approved by the Commission for each utility that on | ||||||
5 | December 31, 2005 provided electric service to at | ||||||
6 | least 100,000 customers in Illinois and for each small | ||||||
7 | multi-jurisdictional utility that on December 31, 2005 | ||||||
8 | served less than 100,000 customers in Illinois; | ||||||
9 | (v) preserve the confidentiality of supplier and | ||||||
10 | bidding information in a manner consistent with all | ||||||
11 | applicable laws, rules, regulations, and tariffs; | ||||||
12 | (vi) provide expert advice to the Commission and | ||||||
13 | consult with the procurement administrator regarding | ||||||
14 | issues related to procurement process design, rules, | ||||||
15 | protocols, and policy-related matters; and | ||||||
16 | (vii) consult with the procurement administrator | ||||||
17 | regarding the development and use of benchmark | ||||||
18 | criteria, standard form contracts, credit policies, | ||||||
19 | and bid documents. | ||||||
20 | (d) Except as provided in subsection (j), the planning | ||||||
21 | process shall be conducted as follows: | ||||||
22 | (1) Beginning in 2008, each Illinois utility procuring | ||||||
23 | power pursuant to this Section shall annually provide a | ||||||
24 | range of load forecasts to the Illinois Power Agency by | ||||||
25 | July 15 of each year, or such other date as may be required | ||||||
26 | by the Commission or Agency. The load forecasts shall |
| |||||||
| |||||||
1 | cover the 5-year procurement planning period for the next | ||||||
2 | procurement plan and shall include hourly data | ||||||
3 | representing a high-load, low-load, and expected-load | ||||||
4 | scenario for the load of those retail customers included | ||||||
5 | in the plan's electric supply service requirements. The | ||||||
6 | utility shall provide supporting data and assumptions for | ||||||
7 | each of the scenarios. | ||||||
8 | (2) Beginning in 2008, the Illinois Power Agency shall | ||||||
9 | prepare a procurement plan by August 15th of each year, or | ||||||
10 | such other date as may be required by the Commission. The | ||||||
11 | procurement plan shall identify the portfolio of | ||||||
12 | demand-response and power and energy products to be | ||||||
13 | procured. Cost-effective demand-response measures shall be | ||||||
14 | procured as set forth in item (iii) of subsection (b) of | ||||||
15 | this Section. Copies of the procurement plan shall be | ||||||
16 | posted and made publicly available on the Agency's and | ||||||
17 | Commission's websites, and copies shall also be provided | ||||||
18 | to each affected electric utility. An affected utility | ||||||
19 | shall have 30 days following the date of posting to | ||||||
20 | provide comment to the Agency on the procurement plan. | ||||||
21 | Other interested entities also may comment on the | ||||||
22 | procurement plan. All comments submitted to the Agency | ||||||
23 | shall be specific, supported by data or other detailed | ||||||
24 | analyses, and, if objecting to all or a portion of the | ||||||
25 | procurement plan, accompanied by specific alternative | ||||||
26 | wording or proposals. All comments shall be posted on the |
| |||||||
| |||||||
1 | Agency's and Commission's websites. During this 30-day | ||||||
2 | comment period, the Agency shall hold at least one public | ||||||
3 | hearing within each utility's service area for the purpose | ||||||
4 | of receiving public comment on the procurement plan. | ||||||
5 | Within 14 days following the end of the 30-day review | ||||||
6 | period, the Agency shall revise the procurement plan as | ||||||
7 | necessary based on the comments received and file the | ||||||
8 | procurement plan with the Commission and post the | ||||||
9 | procurement plan on the websites. | ||||||
10 | (3) Within 5 days after the filing of the procurement | ||||||
11 | plan, any person objecting to the procurement plan shall | ||||||
12 | file an objection with the Commission. Within 10 days | ||||||
13 | after the filing, the Commission shall determine whether a | ||||||
14 | hearing is necessary. The Commission shall enter its order | ||||||
15 | confirming or modifying the procurement plan within 90 | ||||||
16 | days after the filing of the procurement plan by the | ||||||
17 | Illinois Power Agency. | ||||||
18 | (4) The Commission shall approve the procurement plan, | ||||||
19 | including expressly the forecast used in the procurement | ||||||
20 | plan, if the Commission determines that it will ensure | ||||||
21 | adequate, reliable, affordable, efficient, and | ||||||
22 | environmentally sustainable electric service at the lowest | ||||||
23 | total cost over time, taking into account any benefits of | ||||||
24 | price stability. | ||||||
25 | (4.5) The Commission shall review the Agency's | ||||||
26 | recommendations for the selection of applicants to enter |
| |||||||
| |||||||
1 | into long-term contracts for the sale and delivery of | ||||||
2 | renewable energy credits from new renewable energy | ||||||
3 | facilities to be constructed at or adjacent to the sites | ||||||
4 | of coal-fueled electric generating facilities in this | ||||||
5 | State in accordance with the provisions of subsection | ||||||
6 | (c-5) of Section 1-75 of the Illinois Power Agency Act, | ||||||
7 | and shall approve the Agency's recommendations if the | ||||||
8 | Commission determines that the applicants recommended by | ||||||
9 | the Agency for selection, the proposed new renewable | ||||||
10 | energy facilities to be constructed, the amounts of | ||||||
11 | renewable energy credits to be delivered pursuant to the | ||||||
12 | contracts, and the other terms of the contracts, are | ||||||
13 | consistent with the requirements of subsection (c-5) of | ||||||
14 | Section 1-75 of the Illinois Power Agency Act. | ||||||
15 | (e) The procurement process shall include each of the | ||||||
16 | following components: | ||||||
17 | (1) Solicitation, pre-qualification, and registration | ||||||
18 | of bidders. The procurement administrator shall | ||||||
19 | disseminate information to potential bidders to promote a | ||||||
20 | procurement event, notify potential bidders that the | ||||||
21 | procurement administrator may enter into a post-bid price | ||||||
22 | negotiation with bidders that meet the applicable | ||||||
23 | benchmarks, provide supply requirements, and otherwise | ||||||
24 | explain the competitive procurement process. In addition | ||||||
25 | to such other publication as the procurement administrator | ||||||
26 | determines is appropriate, this information shall be |
| |||||||
| |||||||
1 | posted on the Illinois Power Agency's and the Commission's | ||||||
2 | websites. The procurement administrator shall also | ||||||
3 | administer the prequalification process, including | ||||||
4 | evaluation of credit worthiness, compliance with | ||||||
5 | procurement rules, and agreement to the standard form | ||||||
6 | contract developed pursuant to paragraph (2) of this | ||||||
7 | subsection (e). The procurement administrator shall then | ||||||
8 | identify and register bidders to participate in the | ||||||
9 | procurement event. | ||||||
10 | (2) Standard contract forms and credit terms and | ||||||
11 | instruments. The procurement administrator, in | ||||||
12 | consultation with the utilities, the Commission, and other | ||||||
13 | interested parties and subject to Commission oversight, | ||||||
14 | shall develop and provide standard contract forms for the | ||||||
15 | supplier contracts that meet generally accepted industry | ||||||
16 | practices. Standard credit terms and instruments that meet | ||||||
17 | generally accepted industry practices shall be similarly | ||||||
18 | developed. The procurement administrator shall make | ||||||
19 | available to the Commission all written comments it | ||||||
20 | receives on the contract forms, credit terms, or | ||||||
21 | instruments. If the procurement administrator cannot reach | ||||||
22 | agreement with the applicable electric utility as to the | ||||||
23 | contract terms and conditions, the procurement | ||||||
24 | administrator must notify the Commission of any disputed | ||||||
25 | terms and the Commission shall resolve the dispute. Except | ||||||
26 | as provided under item (vi) of subparagraph (G) of |
| |||||||
| |||||||
1 | paragraph (1) of subsection (c) of Section 1-75 of the | ||||||
2 | Illinois Power Agency Act, the The terms of the contracts | ||||||
3 | shall not be subject to negotiation by winning bidders, | ||||||
4 | and the bidders must agree to the terms of the contract in | ||||||
5 | advance so that winning bids are selected solely on the | ||||||
6 | basis of price. | ||||||
7 | (3) Establishment of a market-based price benchmark. | ||||||
8 | As part of the development of the procurement process, the | ||||||
9 | procurement administrator, in consultation with the | ||||||
10 | Commission staff, Agency staff, and the procurement | ||||||
11 | monitor, shall establish benchmarks for evaluating the | ||||||
12 | final prices in the contracts for each of the products | ||||||
13 | that will be procured through the procurement process. The | ||||||
14 | benchmarks shall be based on price data for similar | ||||||
15 | products for the same delivery period and same delivery | ||||||
16 | hub, or other delivery hubs after adjusting for that | ||||||
17 | difference. The price benchmarks may also be adjusted to | ||||||
18 | take into account differences between the information | ||||||
19 | reflected in the underlying data sources and the specific | ||||||
20 | products and procurement process being used to procure | ||||||
21 | power for the Illinois utilities. The benchmarks shall be | ||||||
22 | confidential but shall be provided to, and will be subject | ||||||
23 | to Commission review and approval, prior to a procurement | ||||||
24 | event. | ||||||
25 | (4) Request for proposals competitive procurement | ||||||
26 | process. The procurement administrator shall design and |
| |||||||
| |||||||
1 | issue a request for proposals to supply electricity in | ||||||
2 | accordance with each utility's procurement plan, as | ||||||
3 | approved by the Commission. The request for proposals | ||||||
4 | shall set forth a procedure for sealed, binding commitment | ||||||
5 | bidding with pay-as-bid settlement, and provision for | ||||||
6 | selection of bids on the basis of price. | ||||||
7 | (5) A plan for implementing contingencies in the event | ||||||
8 | of supplier default or failure of the procurement process | ||||||
9 | to fully meet the expected load requirement due to | ||||||
10 | insufficient supplier participation, Commission rejection | ||||||
11 | of results, or any other cause. | ||||||
12 | (i) Event of supplier default: In the event of | ||||||
13 | supplier default, the utility shall review the | ||||||
14 | contract of the defaulting supplier to determine if | ||||||
15 | the amount of supply is 200 megawatts or greater, and | ||||||
16 | if there are more than 60 days remaining of the | ||||||
17 | contract term. If both of these conditions are met, | ||||||
18 | and the default results in termination of the | ||||||
19 | contract, the utility shall immediately notify the | ||||||
20 | Illinois Power Agency that a request for proposals | ||||||
21 | must be issued to procure replacement power, and the | ||||||
22 | procurement administrator shall run an additional | ||||||
23 | procurement event. If the contracted supply of the | ||||||
24 | defaulting supplier is less than 200 megawatts or | ||||||
25 | there are less than 60 days remaining of the contract | ||||||
26 | term, the utility shall procure power and energy from |
| |||||||
| |||||||
1 | the applicable regional transmission organization | ||||||
2 | market, including ancillary services, capacity, and | ||||||
3 | day-ahead or real time energy, or both, for the | ||||||
4 | duration of the contract term to replace the | ||||||
5 | contracted supply; provided, however, that if a needed | ||||||
6 | product is not available through the regional | ||||||
7 | transmission organization market it shall be purchased | ||||||
8 | from the wholesale market. | ||||||
9 | (ii) Failure of the procurement process to fully | ||||||
10 | meet the expected load requirement: If the procurement | ||||||
11 | process fails to fully meet the expected load | ||||||
12 | requirement due to insufficient supplier participation | ||||||
13 | or due to a Commission rejection of the procurement | ||||||
14 | results, the procurement administrator, the | ||||||
15 | procurement monitor, and the Commission staff shall | ||||||
16 | meet within 10 days to analyze potential causes of low | ||||||
17 | supplier interest or causes for the Commission | ||||||
18 | decision. If changes are identified that would likely | ||||||
19 | result in increased supplier participation, or that | ||||||
20 | would address concerns causing the Commission to | ||||||
21 | reject the results of the prior procurement event, the | ||||||
22 | procurement administrator may implement those changes | ||||||
23 | and rerun the request for proposals process according | ||||||
24 | to a schedule determined by those parties and | ||||||
25 | consistent with Section 1-75 of the Illinois Power | ||||||
26 | Agency Act and this subsection. In any event, a new |
| |||||||
| |||||||
1 | request for proposals process shall be implemented by | ||||||
2 | the procurement administrator within 90 days after the | ||||||
3 | determination that the procurement process has failed | ||||||
4 | to fully meet the expected load requirement. | ||||||
5 | (iii) In all cases where there is insufficient | ||||||
6 | supply provided under contracts awarded through the | ||||||
7 | procurement process to fully meet the electric | ||||||
8 | utility's load requirement, the utility shall meet the | ||||||
9 | load requirement by procuring power and energy from | ||||||
10 | the applicable regional transmission organization | ||||||
11 | market, including ancillary services, capacity, and | ||||||
12 | day-ahead or real time energy, or both; provided, | ||||||
13 | however, that if a needed product is not available | ||||||
14 | through the regional transmission organization market | ||||||
15 | it shall be purchased from the wholesale market. | ||||||
16 | (6) The procurement processes described in this | ||||||
17 | subsection and in subsection (c-5) of Section 1-75 of the | ||||||
18 | Illinois Power Agency Act are exempt from the requirements | ||||||
19 | of the Illinois Procurement Code, pursuant to Section | ||||||
20 | 20-10 of that Code. | ||||||
21 | (f) Within 2 business days after opening the sealed bids, | ||||||
22 | the procurement administrator shall submit a confidential | ||||||
23 | report to the Commission. The report shall contain the results | ||||||
24 | of the bidding for each of the products along with the | ||||||
25 | procurement administrator's recommendation for the acceptance | ||||||
26 | and rejection of bids based on the price benchmark criteria |
| |||||||
| |||||||
1 | and other factors observed in the process. The procurement | ||||||
2 | monitor also shall submit a confidential report to the | ||||||
3 | Commission within 2 business days after opening the sealed | ||||||
4 | bids. The report shall contain the procurement monitor's | ||||||
5 | assessment of bidder behavior in the process as well as an | ||||||
6 | assessment of the procurement administrator's compliance with | ||||||
7 | the procurement process and rules. The Commission shall review | ||||||
8 | the confidential reports submitted by the procurement | ||||||
9 | administrator and procurement monitor, and shall accept or | ||||||
10 | reject the recommendations of the procurement administrator | ||||||
11 | within 2 business days after receipt of the reports. | ||||||
12 | (g) Within 3 business days after the Commission decision | ||||||
13 | approving the results of a procurement event, the utility | ||||||
14 | shall enter into binding contractual arrangements with the | ||||||
15 | winning suppliers using the standard form contracts; except | ||||||
16 | that the utility shall not be required either directly or | ||||||
17 | indirectly to execute the contracts if a tariff that is | ||||||
18 | consistent with subsection (l) of this Section has not been | ||||||
19 | approved and placed into effect for that utility. | ||||||
20 | (h) For the procurement of standard wholesale products, | ||||||
21 | the names of the successful bidders and the load weighted | ||||||
22 | average of the winning bid prices for each contract type and | ||||||
23 | for each contract term shall be made available to the public at | ||||||
24 | the time of Commission approval of a procurement event. For | ||||||
25 | procurements conducted to meet the requirements of subsection | ||||||
26 | (b) of Section 1-56 or subsection (c) of Section 1-75 of the |
| |||||||
| |||||||
1 | Illinois Power Agency Act governed by the provisions of this | ||||||
2 | Section, the address and nameplate capacity of the new | ||||||
3 | renewable energy generating facility proposed by a winning | ||||||
4 | bidder shall also be made available to the public at the time | ||||||
5 | of Commission approval of a procurement event, along with the | ||||||
6 | business address and contact information for any winning | ||||||
7 | bidder. An estimate or approximation of the nameplate capacity | ||||||
8 | of the new renewable energy generating facility may be | ||||||
9 | disclosed if necessary to protect the confidentiality of | ||||||
10 | individual bid prices. | ||||||
11 | The Commission, the procurement monitor, the procurement | ||||||
12 | administrator, the Illinois Power Agency, and all participants | ||||||
13 | in the procurement process shall maintain the confidentiality | ||||||
14 | of all other supplier and bidding information in a manner | ||||||
15 | consistent with all applicable laws, rules, regulations, and | ||||||
16 | tariffs. Confidential information, including the confidential | ||||||
17 | reports submitted by the procurement administrator and | ||||||
18 | procurement monitor pursuant to subsection (f) of this | ||||||
19 | Section, shall not be made publicly available and shall not be | ||||||
20 | discoverable by any party in any proceeding, absent a | ||||||
21 | compelling demonstration of need, nor shall those reports be | ||||||
22 | admissible in any proceeding other than one for law | ||||||
23 | enforcement purposes. | ||||||
24 | (h-5) For procurements conducted to meet the requirements | ||||||
25 | of subsection (b) of Section 1-56 or subsection (c) of Section | ||||||
26 | 1-75 of the Illinois Power Agency Act, the Illinois Power |
| |||||||
| |||||||
1 | Agency shall release aggregated information related to | ||||||
2 | participation levels across product types and the basis of | ||||||
3 | rejection for non-accepted bids if the Commission, the | ||||||
4 | procurement monitor, the procurement administrator, and the | ||||||
5 | Illinois Power Agency determine that the release of this | ||||||
6 | information would not result in the disclosure of confidential | ||||||
7 | bid information or negatively impact the competitiveness of | ||||||
8 | future renewable energy credit procurements. | ||||||
9 | (i) Within 2 business days after a Commission decision | ||||||
10 | approving the results of a procurement event or such other | ||||||
11 | date as may be required by the Commission from time to time, | ||||||
12 | the utility shall file for informational purposes with the | ||||||
13 | Commission its actual or estimated retail supply charges, as | ||||||
14 | applicable, by customer supply group reflecting the costs | ||||||
15 | associated with the procurement and computed in accordance | ||||||
16 | with the tariffs filed pursuant to subsection (l) of this | ||||||
17 | Section and approved by the Commission. | ||||||
18 | (j) Within 60 days following August 28, 2007 (the | ||||||
19 | effective date of Public Act 95-481), each electric utility | ||||||
20 | that on December 31, 2005 provided electric service to at | ||||||
21 | least 100,000 customers in Illinois shall prepare and file | ||||||
22 | with the Commission an initial procurement plan, which shall | ||||||
23 | conform in all material respects to the requirements of the | ||||||
24 | procurement plan set forth in subsection (b); provided, | ||||||
25 | however, that the Illinois Power Agency Act shall not apply to | ||||||
26 | the initial procurement plan prepared pursuant to this |
| |||||||
| |||||||
1 | subsection. The initial procurement plan shall identify the | ||||||
2 | portfolio of power and energy products to be procured and | ||||||
3 | delivered for the period June 2008 through May 2009, and shall | ||||||
4 | identify the proposed procurement administrator, who shall | ||||||
5 | have the same experience and expertise as is required of a | ||||||
6 | procurement administrator hired pursuant to Section 1-75 of | ||||||
7 | the Illinois Power Agency Act. Copies of the procurement plan | ||||||
8 | shall be posted and made publicly available on the | ||||||
9 | Commission's website. The initial procurement plan may include | ||||||
10 | contracts for renewable resources that extend beyond May 2009. | ||||||
11 | (i) Within 14 days following filing of the initial | ||||||
12 | procurement plan, any person may file a detailed objection | ||||||
13 | with the Commission contesting the procurement plan | ||||||
14 | submitted by the electric utility. All objections to the | ||||||
15 | electric utility's plan shall be specific, supported by | ||||||
16 | data or other detailed analyses. The electric utility may | ||||||
17 | file a response to any objections to its procurement plan | ||||||
18 | within 7 days after the date objections are due to be | ||||||
19 | filed. Within 7 days after the date the utility's response | ||||||
20 | is due, the Commission shall determine whether a hearing | ||||||
21 | is necessary. If it determines that a hearing is | ||||||
22 | necessary, it shall require the hearing to be completed | ||||||
23 | and issue an order on the procurement plan within 60 days | ||||||
24 | after the filing of the procurement plan by the electric | ||||||
25 | utility. | ||||||
26 | (ii) The order shall approve or modify the procurement |
| |||||||
| |||||||
1 | plan, approve an independent procurement administrator, | ||||||
2 | and approve or modify the electric utility's tariffs that | ||||||
3 | are proposed with the initial procurement plan. The | ||||||
4 | Commission shall approve the procurement plan if the | ||||||
5 | Commission determines that it will ensure adequate, | ||||||
6 | reliable, affordable, efficient, and environmentally | ||||||
7 | sustainable electric service at the lowest total cost over | ||||||
8 | time, taking into account any benefits of price stability. | ||||||
9 | (k) (Blank). | ||||||
10 | (k-5) (Blank). | ||||||
11 | (l) An electric utility shall recover its costs incurred | ||||||
12 | under this Section and subsection (c-5) of Section 1-75 of the | ||||||
13 | Illinois Power Agency Act, including, but not limited to, the | ||||||
14 | costs of procuring power and energy demand-response resources | ||||||
15 | under this Section and its costs for purchasing renewable | ||||||
16 | energy credits pursuant to subsection (c-5) of Section 1-75 of | ||||||
17 | the Illinois Power Agency Act. The utility shall file with the | ||||||
18 | initial procurement plan its proposed tariffs through which | ||||||
19 | its costs of procuring power that are incurred pursuant to a | ||||||
20 | Commission-approved procurement plan and those other costs | ||||||
21 | identified in this subsection (l), will be recovered. The | ||||||
22 | tariffs shall include a formula rate or charge designed to | ||||||
23 | pass through both the costs incurred by the utility in | ||||||
24 | procuring a supply of electric power and energy for the | ||||||
25 | applicable customer classes with no mark-up or return on the | ||||||
26 | price paid by the utility for that supply, plus any just and |
| |||||||
| |||||||
1 | reasonable costs that the utility incurs in arranging and | ||||||
2 | providing for the supply of electric power and energy. The | ||||||
3 | formula rate or charge shall also contain provisions that | ||||||
4 | ensure that its application does not result in over or under | ||||||
5 | recovery due to changes in customer usage and demand patterns, | ||||||
6 | and that provide for the correction, on at least an annual | ||||||
7 | basis, of any accounting errors that may occur. A utility | ||||||
8 | shall recover through the tariff all reasonable costs incurred | ||||||
9 | to implement or comply with any procurement plan that is | ||||||
10 | developed and put into effect pursuant to Section 1-75 of the | ||||||
11 | Illinois Power Agency Act and this Section, and for the | ||||||
12 | procurement of renewable energy credits pursuant to subsection | ||||||
13 | (c-5) of Section 1-75 of the Illinois Power Agency Act, | ||||||
14 | including any fees assessed by the Illinois Power Agency, | ||||||
15 | costs associated with load balancing, and contingency plan | ||||||
16 | costs. The electric utility shall also recover its full costs | ||||||
17 | of procuring electric supply for which it contracted before | ||||||
18 | the effective date of this Section in conjunction with the | ||||||
19 | provision of full requirements service under fixed-price | ||||||
20 | bundled service tariffs subsequent to December 31, 2006. All | ||||||
21 | such costs shall be deemed to have been prudently incurred. | ||||||
22 | The pass-through tariffs that are filed and approved pursuant | ||||||
23 | to this Section shall not be subject to review under, or in any | ||||||
24 | way limited by, Section 16-111(i) of this Act. All of the costs | ||||||
25 | incurred by the electric utility associated with the purchase | ||||||
26 | of zero emission credits in accordance with subsection (d-5) |
| |||||||
| |||||||
1 | of Section 1-75 of the Illinois Power Agency Act, all costs | ||||||
2 | incurred by the electric utility associated with the purchase | ||||||
3 | of carbon mitigation credits in accordance with subsection | ||||||
4 | (d-10) of Section 1-75 of the Illinois Power Agency Act, and, | ||||||
5 | beginning June 1, 2017, all of the costs incurred by the | ||||||
6 | electric utility associated with the purchase of renewable | ||||||
7 | energy resources in accordance with Sections 1-56 and 1-75 of | ||||||
8 | the Illinois Power Agency Act, and all of the costs incurred by | ||||||
9 | the electric utility in purchasing renewable energy credits in | ||||||
10 | accordance with subsection (c-5) of Section 1-75 of the | ||||||
11 | Illinois Power Agency Act, and all costs incurred by the | ||||||
12 | electric utility in purchasing energy storage credits in | ||||||
13 | accordance with Section 1-93 of the Illinois Power Agency Act | ||||||
14 | shall be recovered through the electric utility's tariffed | ||||||
15 | charges applicable to all of its retail customers, as | ||||||
16 | specified in subsection (k) or subsection (i-5), as | ||||||
17 | applicable, of Section 16-108 of this Act, and shall not be | ||||||
18 | recovered through the electric utility's tariffed charges for | ||||||
19 | electric power and energy supply to its eligible retail | ||||||
20 | customers. | ||||||
21 | (m) The Commission has the authority to adopt rules to | ||||||
22 | carry out the provisions of this Section. For the public | ||||||
23 | interest, safety, and welfare, the Commission also has | ||||||
24 | authority to adopt rules to carry out the provisions of this | ||||||
25 | Section on an emergency basis immediately following August 28, | ||||||
26 | 2007 (the effective date of Public Act 95-481). |
| |||||||
| |||||||
1 | (n) Notwithstanding any other provision of this Act, any | ||||||
2 | affiliated electric utilities that submit a single procurement | ||||||
3 | plan covering their combined needs may procure for those | ||||||
4 | combined needs in conjunction with that plan, and may enter | ||||||
5 | jointly into power supply contracts, purchases, and other | ||||||
6 | procurement arrangements, and allocate capacity and energy and | ||||||
7 | cost responsibility therefor among themselves in proportion to | ||||||
8 | their requirements. | ||||||
9 | (o) On or before June 1 of each year, the Commission shall | ||||||
10 | hold an informal hearing for the purpose of receiving comments | ||||||
11 | on the prior year's procurement process and any | ||||||
12 | recommendations for change. | ||||||
13 | (p) An electric utility subject to this Section may | ||||||
14 | propose to invest, lease, own, or operate an electric | ||||||
15 | generation facility as part of its procurement plan, provided | ||||||
16 | the utility demonstrates that such facility is the least-cost | ||||||
17 | option to provide electric service to those retail customers | ||||||
18 | included in the plan's electric supply service requirements. | ||||||
19 | If the facility is shown to be the least-cost option and is | ||||||
20 | included in a procurement plan prepared in accordance with | ||||||
21 | Section 1-75 of the Illinois Power Agency Act and this | ||||||
22 | Section, then the electric utility shall make a filing | ||||||
23 | pursuant to Section 8-406 of this Act, and may request of the | ||||||
24 | Commission any statutory relief required thereunder. If the | ||||||
25 | Commission grants all of the necessary approvals for the | ||||||
26 | proposed facility, such supply shall thereafter be considered |
| |||||||
| |||||||
1 | as a pre-existing contract under subsection (b) of this | ||||||
2 | Section. The Commission shall in any order approving a | ||||||
3 | proposal under this subsection specify how the utility will | ||||||
4 | recover the prudently incurred costs of investing in, leasing, | ||||||
5 | owning, or operating such generation facility through just and | ||||||
6 | reasonable rates charged to those retail customers included in | ||||||
7 | the plan's electric supply service requirements. Cost recovery | ||||||
8 | for facilities included in the utility's procurement plan | ||||||
9 | pursuant to this subsection shall not be subject to review | ||||||
10 | under or in any way limited by the provisions of Section | ||||||
11 | 16-111(i) of this Act. Nothing in this Section is intended to | ||||||
12 | prohibit a utility from filing for a fuel adjustment clause as | ||||||
13 | is otherwise permitted under Section 9-220 of this Act. | ||||||
14 | (q) If the Illinois Power Agency filed with the | ||||||
15 | Commission, under Section 16-111.5 of this Act, its proposed | ||||||
16 | procurement plan for the period commencing June 1, 2017, and | ||||||
17 | the Commission has not yet entered its final order approving | ||||||
18 | the plan on or before the effective date of this amendatory Act | ||||||
19 | of the 99th General Assembly, then the Illinois Power Agency | ||||||
20 | shall file a notice of withdrawal with the Commission, after | ||||||
21 | the effective date of this amendatory Act of the 99th General | ||||||
22 | Assembly, to withdraw the proposed procurement of renewable | ||||||
23 | energy resources to be approved under the plan, other than the | ||||||
24 | procurement of renewable energy credits from distributed | ||||||
25 | renewable energy generation devices using funds previously | ||||||
26 | collected from electric utilities' retail customers that take |
| |||||||
| |||||||
1 | service pursuant to electric utilities' hourly pricing tariff | ||||||
2 | or tariffs and, for an electric utility that serves less than | ||||||
3 | 100,000 retail customers in the State, other than the | ||||||
4 | procurement of renewable energy credits from distributed | ||||||
5 | renewable energy generation devices. Upon receipt of the | ||||||
6 | notice, the Commission shall enter an order that approves the | ||||||
7 | withdrawal of the proposed procurement of renewable energy | ||||||
8 | resources from the plan. The initially proposed procurement of | ||||||
9 | renewable energy resources shall not be approved or be the | ||||||
10 | subject of any further hearing, investigation, proceeding, or | ||||||
11 | order of any kind. | ||||||
12 | This amendatory Act of the 99th General Assembly preempts | ||||||
13 | and supersedes any order entered by the Commission that | ||||||
14 | approved the Illinois Power Agency's procurement plan for the | ||||||
15 | period commencing June 1, 2017, to the extent it is | ||||||
16 | inconsistent with the provisions of this amendatory Act of the | ||||||
17 | 99th General Assembly. To the extent any previously entered | ||||||
18 | order approved the procurement of renewable energy resources, | ||||||
19 | the portion of that order approving the procurement shall be | ||||||
20 | void, other than the procurement of renewable energy credits | ||||||
21 | from distributed renewable energy generation devices using | ||||||
22 | funds previously collected from electric utilities' retail | ||||||
23 | customers that take service under electric utilities' hourly | ||||||
24 | pricing tariff or tariffs and, for an electric utility that | ||||||
25 | serves less than 100,000 retail customers in the State, other | ||||||
26 | than the procurement of renewable energy credits for |
| |||||||
| |||||||
1 | distributed renewable energy generation devices. | ||||||
2 | (Source: P.A. 102-662, eff. 9-15-21.)
| ||||||
3 | (220 ILCS 5/Art. XXIII heading new) | ||||||
4 | ARTICLE XXIII. OFFICE OF INTERCONNECTION AND RENEWABLE | ||||||
5 | DEVELOPMENT | ||||||
6 | (220 ILCS 5/23-101 new) | ||||||
7 | Sec. 23-101. Findings and intent. The General Assembly | ||||||
8 | finds and declares: | ||||||
9 | (1) The ability of the Commission and the Illinois | ||||||
10 | Power Agency to ensure long-term benefits from community | ||||||
11 | renewable generation projects and distributed renewable | ||||||
12 | energy generation devices is limited. For Illinois | ||||||
13 | consumers to continue to receive the substantial financial | ||||||
14 | and environmental benefits of deployment of distributed | ||||||
15 | renewable generation resources, including devices paired | ||||||
16 | with energy storage, the Commission must gather additional | ||||||
17 | data and proactively identify barriers. | ||||||
18 | (2) To date, as a result of the Future Energy Jobs Act | ||||||
19 | and the Climate and Equitable Jobs Act, tens of thousands | ||||||
20 | of Illinois retail customers of all sizes have experienced | ||||||
21 | the benefits of new renewable generation. | ||||||
22 | (3) However, as renewable generation deployment | ||||||
23 | increases, but remains short of the goals set by the | ||||||
24 | Climate and Equitable Jobs Act, it is critical that the |
| |||||||
| |||||||
1 | Commission proactively identify and address barriers to | ||||||
2 | achieving those goals. | ||||||
3 | (4) The Commission should promote the efficient | ||||||
4 | deployment of distributed renewable generation resources.
| ||||||
5 | (220 ILCS 5/23-105 new) | ||||||
6 | Sec. 23-105. Definitions. In this Article: | ||||||
7 | "Director" means the Director of the Office of | ||||||
8 | Interconnection and Renewable Development. | ||||||
9 | "Distributed renewable energy resources" means a community | ||||||
10 | renewable generation device or a distributed renewable energy | ||||||
11 | generation device as those terms are defined in Section 1-10 | ||||||
12 | of the Illinois Power Agency Act. "Distributed renewable | ||||||
13 | energy resource" includes storage paired with a community | ||||||
14 | renewable generation device or a distributed renewable energy | ||||||
15 | generation device. | ||||||
16 | "Energy storage system" has the meaning given to that term | ||||||
17 | in Section 1-10 of the Illinois Power Agency Act. | ||||||
18 | "Office" means the Office of Interconnection and Renewable | ||||||
19 | Development. | ||||||
20 | "Utility-scale solar project" and "utility-scale wind | ||||||
21 | project" have the meanings given to those terms in Section | ||||||
22 | 1-10 of the Illinois Power Agency Act.
| ||||||
23 | (220 ILCS 5/23-110 new) | ||||||
24 | Sec. 23-110. Office of Interconnection and Renewable |
| |||||||
| |||||||
1 | Development. | ||||||
2 | (a) Within 90 days after the effective date of this | ||||||
3 | amendatory Act of the 103rd General Assembly, subject to | ||||||
4 | appropriation, the Commission shall establish an Office of | ||||||
5 | Interconnection and Renewable Development and employ a | ||||||
6 | Director of Interconnection and Renewable Development to | ||||||
7 | oversee the Office. The Director shall have authority to | ||||||
8 | employ or otherwise retain at least 3 professionals dedicated | ||||||
9 | to the task of actively seeking out ways to identify barriers | ||||||
10 | to deployment of distributed renewable energy resources. | ||||||
11 | (b) The Office shall actively seek input from all | ||||||
12 | interested parties and shall develop a thorough understanding | ||||||
13 | and critical analyses of the tools and techniques used to | ||||||
14 | promote development and remove barriers to development of the | ||||||
15 | projects and devices. The Office shall take these steps for | ||||||
16 | interconnections involving distributed renewable energy | ||||||
17 | resources, energy storage systems, utility-scale wind | ||||||
18 | projects, and utility-scale solar projects, including | ||||||
19 | interconnections to a distribution system or a transmission | ||||||
20 | system. | ||||||
21 | (c) The Office shall monitor interconnection between | ||||||
22 | electric utilities and applicants for interconnection and | ||||||
23 | interconnection customers. The Office shall request, and | ||||||
24 | electric utilities shall promptly provide, information and | ||||||
25 | records related to pending, successful, and terminated | ||||||
26 | interconnections. The Office shall include at least one |
| |||||||
| |||||||
1 | employee with a background in engineering of distribution | ||||||
2 | interconnections. The Office shall take these steps for | ||||||
3 | interconnections involving distributed renewable energy | ||||||
4 | resources, energy storage systems, utility-scale wind | ||||||
5 | projects, and utility-scale solar projects, including | ||||||
6 | interconnections to a distribution system or a transmission | ||||||
7 | system. | ||||||
8 | (d) The Office shall employ an Ombudsperson who, in | ||||||
9 | addition to the roles described in paragraph (2) of subsection | ||||||
10 | (h-5) of Section 16-107.5, is responsible for oversight of all | ||||||
11 | utility's compliance with the rules adopted under subsection | ||||||
12 | (h) of Section 16-107.5 and any utility interconnection | ||||||
13 | policies or procedures. The Ombudsperson may request, and each | ||||||
14 | electric utility shall timely provide, records and information | ||||||
15 | as the Ombudsperson may request from time to time to carry out | ||||||
16 | his or her duties under this subsection or subsection (m) of | ||||||
17 | Section 1-93 of the Illinois Power Agency Act. At any time, the | ||||||
18 | Ombudsperson may issue a report to the Commission detailing | ||||||
19 | any suspected violations of this Act or rules adopted by the | ||||||
20 | Commission under this Act concerning interconnection processes | ||||||
21 | or a particular interconnection.
| ||||||
22 | (220 ILCS 5/23-115 new) | ||||||
23 | Sec. 23-115. Annual report. The Office shall collect and | ||||||
24 | annually report to the Commission information about net | ||||||
25 | metering under Section 16-107.5. The Office shall quantify the |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | totality of retail customer benefits from net metering, | |||||||||||||||||||||||||
2 | including an assessment of customer value from net metering | |||||||||||||||||||||||||
3 | and net metering offered under subsection (l) of Section | |||||||||||||||||||||||||
4 | 16-107.5. The Office shall include information about | |||||||||||||||||||||||||
5 | distributed renewable energy resources outside of Illinois | |||||||||||||||||||||||||
6 | Power Agency programs and procurements identified in Sections | |||||||||||||||||||||||||
7 | 1-56 and 1-75 of the Illinois Power Agency Act.
| |||||||||||||||||||||||||
8 | (220 ILCS 5/23-120 new) | |||||||||||||||||||||||||
9 | Sec. 23-120. Interconnection Working Group. | |||||||||||||||||||||||||
10 | (a) The Ombudsperson shall provide to the Commission with | |||||||||||||||||||||||||
11 | a biennial update on consensus and non-consensus items | |||||||||||||||||||||||||
12 | addressed in the Interconnection Working Group. The | |||||||||||||||||||||||||
13 | Ombudsperson shall provide recommendation for Commission | |||||||||||||||||||||||||
14 | actions and the proposed timing of the actions based on the | |||||||||||||||||||||||||
15 | findings of the Interconnection Working Group. | |||||||||||||||||||||||||
16 | (b) In collaboration with the Ethics Officer of the | |||||||||||||||||||||||||
17 | Commission, the Office shall develop policies and procedures | |||||||||||||||||||||||||
18 | to facilitate employees of the Office in leading the | |||||||||||||||||||||||||
19 | Interconnection Working Group described in subsection (h-5) of | |||||||||||||||||||||||||
20 | Section 16-107.5 without interference with docketed | |||||||||||||||||||||||||
21 | proceedings. The policies and procedures developed under this | |||||||||||||||||||||||||
22 | subsection shall be designed to allow the Interconnection | |||||||||||||||||||||||||
23 | Working Group to work without interruption.
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24 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||
25 | becoming law. | |||||||||||||||||||||||||
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