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HB1700 Enrolled LRB104 08228 SPS 18278 b
1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Enterprise Zone Act is amended by
5 changing Section 5.5 as follows:
6 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
7 Sec. 5.5. High Impact Business.
8 (a) In order to respond to unique opportunities to assist
9 in the encouragement, development, growth, and expansion of
10 the private sector through large-scale large scale investment
11 and development projects, the Department is authorized to
12 receive and approve applications for the designation of "High
13 Impact Businesses" in Illinois, for an initial term of 20
14 years with an option for renewal for a term not to exceed 20
15 years, subject to the following conditions:
16 (1) such applications may be submitted at any time
17 during the year;
18 (2) such business is not located, at the time of
19 designation, in an enterprise zone designated pursuant to
20 this Act, except for grocery stores, as defined in the
21 Grocery Initiative Act, and a new battery energy storage
22 solution facility, as defined by subparagraph (I) of
23 paragraph (3) of this subsection (a);
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1 (3) the business intends to do, commits to do, or is
2 one or more of the following:
3 (A) the business intends to make a minimum
4 investment of $12,000,000 which will be placed in
5 service in qualified property and intends to create
6 500 full-time equivalent jobs at a designated location
7 in Illinois or intends to make a minimum investment of
8 $30,000,000 which will be placed in service in
9 qualified property and intends to retain 1,500
10 full-time retained jobs at a designated location in
11 Illinois. The terms "placed in service" and "qualified
12 property" have the same meanings as described in
13 subsection (h) of Section 201 of the Illinois Income
14 Tax Act; or
15 (B) the business intends to establish a new
16 electric generating facility at a designated location
17 in Illinois. "New electric generating facility", for
18 purposes of this Section, means a newly constructed
19 electric generation plant or a newly constructed
20 generation capacity expansion at an existing electric
21 generation plant, including the transmission lines and
22 associated equipment that transfers electricity from
23 points of supply to points of delivery, and for which
24 such new foundation construction commenced not sooner
25 than July 1, 2001. Such facility shall be designed to
26 provide baseload electric generation and shall operate
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1 on a continuous basis throughout the year; and (i)
2 shall have an aggregate rated generating capacity of
3 at least 1,000 megawatts for all new units at one site
4 if it uses natural gas as its primary fuel and
5 foundation construction of the facility is commenced
6 on or before December 31, 2004, or shall have an
7 aggregate rated generating capacity of at least 400
8 megawatts for all new units at one site if it uses coal
9 or gases derived from coal as its primary fuel and
10 shall support the creation of at least 150 new
11 Illinois coal mining jobs, or (ii) shall be funded
12 through a federal Department of Energy grant before
13 December 31, 2010 and shall support the creation of
14 Illinois coal mining jobs, or (iii) shall use coal
15 gasification or integrated gasification-combined cycle
16 units that generate electricity or chemicals, or both,
17 and shall support the creation of Illinois coal mining
18 jobs. The term "placed in service" has the same
19 meaning as described in subsection (h) of Section 201
20 of the Illinois Income Tax Act; or
21 (B-5) the business intends to establish a new
22 gasification facility at a designated location in
23 Illinois. As used in this Section, "new gasification
24 facility" means a newly constructed coal gasification
25 facility that generates chemical feedstocks or
26 transportation fuels derived from coal (which may
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1 include, but are not limited to, methane, methanol,
2 and nitrogen fertilizer), that supports the creation
3 or retention of Illinois coal mining jobs, and that
4 qualifies for financial assistance from the Department
5 before December 31, 2010. A new gasification facility
6 does not include a pilot project located within
7 Jefferson County or within a county adjacent to
8 Jefferson County for synthetic natural gas from coal;
9 or
10 (C) the business intends to establish production
11 operations at a new coal mine, re-establish production
12 operations at a closed coal mine, or expand production
13 at an existing coal mine at a designated location in
14 Illinois not sooner than July 1, 2001; provided that
15 the production operations result in the creation of
16 150 new Illinois coal mining jobs as described in
17 subdivision (a)(3)(B) of this Section, and further
18 provided that the coal extracted from such mine is
19 utilized as the predominant source for a new electric
20 generating facility. The term "placed in service" has
21 the same meaning as described in subsection (h) of
22 Section 201 of the Illinois Income Tax Act; or
23 (D) the business intends to construct new
24 transmission facilities or upgrade existing
25 transmission facilities at designated locations in
26 Illinois, for which construction commenced not sooner
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1 than July 1, 2001. For the purposes of this Section,
2 "transmission facilities" means transmission lines
3 with a voltage rating of 115 kilovolts or above,
4 including associated equipment, that transfer
5 electricity from points of supply to points of
6 delivery and that transmit a majority of the
7 electricity generated by a new electric generating
8 facility designated as a High Impact Business in
9 accordance with this Section. The term "placed in
10 service" has the same meaning as described in
11 subsection (h) of Section 201 of the Illinois Income
12 Tax Act; or
13 (E) the business intends to establish a new wind
14 power facility that will be constructed under a
15 project labor agreement at a designated location in
16 Illinois. For purposes of this Section, "new wind
17 power facility" means a newly constructed electric
18 generation facility, a newly constructed expansion of
19 an existing electric generation facility, or the
20 replacement of an existing electric generation
21 facility, including the demolition and removal of an
22 electric generation facility irrespective of whether
23 it will be replaced, placed in service or replaced on
24 or after July 1, 2009, that generates electricity
25 using wind energy devices, and such facility shall be
26 deemed to include any permanent structures associated
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1 with the electric generation facility and all
2 associated transmission lines, substations, and other
3 equipment related to the generation of electricity
4 from wind energy devices. For purposes of this
5 Section, "wind energy device" means any device, with a
6 nameplate capacity of at least 0.5 megawatts, that is
7 used in the process of converting kinetic energy from
8 the wind to generate electricity; or
9 (E-5) the business intends to establish a new
10 utility-scale solar facility that will be constructed
11 under a project labor agreement at a designated
12 location in Illinois. For purposes of this Section,
13 "new utility-scale solar power facility" means a newly
14 constructed electric generation facility, or a newly
15 constructed expansion of an existing electric
16 generation facility, placed in service on or after
17 July 1, 2021, that (i) generates electricity using
18 photovoltaic cells and (ii) has a nameplate capacity
19 that is greater than 5,000 kilowatts, and such
20 facility shall be deemed to include all associated
21 transmission lines, substations, energy storage
22 facilities, and other equipment related to the
23 generation and storage of electricity from
24 photovoltaic cells; or
25 (F) the business commits to (i) make a minimum
26 investment of $500,000,000, which will be placed in
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1 service in a qualified property, (ii) create 125
2 full-time equivalent jobs at a designated location in
3 Illinois, (iii) establish a fertilizer plant at a
4 designated location in Illinois that complies with the
5 set-back standards as described in Table 1: Initial
6 Isolation and Protective Action Distances in the 2012
7 Emergency Response Guidebook published by the United
8 States Department of Transportation, (iv) pay a
9 prevailing wage for employees at that location who are
10 engaged in construction activities, and (v) secure an
11 appropriate level of general liability insurance to
12 protect against catastrophic failure of the fertilizer
13 plant or any of its constituent systems; in addition,
14 the business must agree to enter into a construction
15 project labor agreement including provisions
16 establishing wages, benefits, and other compensation
17 for employees performing work under the project labor
18 agreement at that location; for the purposes of this
19 Section, "fertilizer plant" means a newly constructed
20 or upgraded plant utilizing gas used in the production
21 of anhydrous ammonia and downstream nitrogen
22 fertilizer products for resale; for the purposes of
23 this Section, "prevailing wage" means the hourly cash
24 wages plus fringe benefits for training and
25 apprenticeship programs approved by the U.S.
26 Department of Labor, Bureau of Apprenticeship and
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1 Training, health and welfare, insurance, vacations and
2 pensions paid generally, in the locality in which the
3 work is being performed, to employees engaged in work
4 of a similar character on public works; this paragraph
5 (F) applies only to businesses that submit an
6 application to the Department within 60 days after
7 July 25, 2013 (the effective date of Public Act
8 98-109); or
9 (G) the business intends to establish a new
10 cultured cell material food production facility at a
11 designated location in Illinois. As used in this
12 paragraph (G):
13 "Cultured cell material food production facility"
14 means a facility (i) at which cultured animal cell
15 food is developed using animal cell culture
16 technology, (ii) at which production processes occur
17 that include the establishment of cell lines and cell
18 banks, manufacturing controls, and all components and
19 inputs, and (iii) that complies with all existing
20 registrations, inspections, licensing, and approvals
21 from all applicable and participating State and
22 federal food agencies, including the Department of
23 Agriculture, the Department of Public Health, and the
24 United States Food and Drug Administration, to ensure
25 that all food production is safe and lawful under
26 provisions of the Federal Food, Drug and Cosmetic Act
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1 related to the development, production, and storage of
2 cultured animal cell food.
3 "New cultured cell material food production
4 facility" means a newly constructed cultured cell
5 material food production facility that is placed in
6 service on or after June 7, 2023 (the effective date of
7 Public Act 103-9) or a newly constructed expansion of
8 an existing cultured cell material food production
9 facility, in a controlled environment, when the
10 improvements are placed in service on or after June 7,
11 2023 (the effective date of Public Act 103-9); or
12 (H) the business is an existing or planned grocery
13 store, as that term is defined in Section 5 of the
14 Grocery Initiative Act, and receives financial support
15 under that Act within the 10 years before submitting
16 its application under this Act; or
17 (I) the business intends to establish a new
18 battery energy storage solution facility that will be
19 constructed under a project labor agreement at a
20 designated location in Illinois. As used in this
21 paragraph (I):
22 "New battery energy storage solution facility"
23 means a newly constructed battery energy storage
24 facility, a newly constructed expansion of an existing
25 battery energy storage facility, or the replacement of
26 an existing battery energy storage facility that
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1 stores electricity using battery devices and other
2 means. "New battery energy storage solution facility"
3 includes any permanent structures associated with the
4 new battery energy storage facility and all associated
5 transmission lines, substations, and other equipment
6 that is related to the storage and transmission of
7 electric power and that has a capacity of not less than
8 20 megawatt and storage capability of not less than 40
9 megawatt hours of energy; or
10 (J) the business intends to construct a new high
11 voltage direct current converter station at a
12 designated location in Illinois. As used in this
13 paragraph, "high voltage direct current converter
14 station" has the same meaning given to that term in
15 Section 1-10 of the Illinois Power Agency Act; or
16 (K) the business intends to construct a new high
17 voltage direct current converter station facility at a
18 designated location in Illinois. As used in this
19 paragraph, "high voltage direct current converter
20 station" has the same meaning given to that term in
21 Section 1-10 of the Illinois Power Agency Act; and
22 (4) no later than 90 days after an application is
23 submitted, the Department shall notify the applicant of
24 the Department's determination of the qualification of the
25 proposed High Impact Business under this Section.
26 (a-5) For the purposes of businesses designated as High
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1 Impact Businesses pursuant to subparagraph (E), (E-5), or (I)
2 of paragraph (3) of subsection (a) of this Section, "project
3 labor agreement" means a pre-hire collective bargaining
4 agreement that covers all terms and conditions of employment
5 on a specific construction project. Project labor agreements
6 required under subparagraph (E), (E-5), or (I) of paragraph
7 (3) of subsection (a) of this Section must include, at a
8 minimum, the following:
9 (1) provisions establishing the minimum hourly wage
10 for each class of labor organization employee;
11 (2) provisions establishing the benefits and other
12 compensation for each class of labor organization
13 employee;
14 (3) provisions establishing that no strike or disputes
15 will be engaged in by the labor organization employees;
16 (4) provisions establishing that no lockout or
17 disputes will be engaged in by the general contractor
18 building the project; and
19 (5) provisions for minorities and women, as defined
20 under the Business Enterprise for Minorities, Women, and
21 Persons with Disabilities Act, setting forth goals for
22 apprenticeship hours to be performed by minorities and
23 women and setting forth goals for total hours to be
24 performed by underrepresented minorities and women.
25 A labor organization and the general contractor building
26 the project may include other terms and conditions in the
HB1700 Enrolled - 12 - LRB104 08228 SPS 18278 b
1 project labor agreement as they deem necessary.
2 (b) Businesses designated as High Impact Businesses
3 pursuant to subdivision (a)(3)(A) of this Section shall
4 qualify for the credits and exemptions described in the
5 following Acts: Section 9-222 and Section 9-222.1A of the
6 Public Utilities Act, subsection (h) of Section 201 of the
7 Illinois Income Tax Act, and Section 1d of the Retailers'
8 Occupation Tax Act; provided that these credits and exemptions
9 described in these Acts shall not be authorized until the
10 minimum investments set forth in subdivision (a)(3)(A) of this
11 Section have been placed in service in qualified properties
12 and, in the case of the exemptions described in the Public
13 Utilities Act and Section 1d of the Retailers' Occupation Tax
14 Act, the minimum full-time equivalent jobs or full-time
15 retained jobs set forth in subdivision (a)(3)(A) of this
16 Section have been created or retained. Businesses designated
17 as High Impact Businesses under this Section shall also
18 qualify for the exemption described in Section 5l of the
19 Retailers' Occupation Tax Act. The credit provided in
20 subsection (h) of Section 201 of the Illinois Income Tax Act
21 shall be applicable to investments in qualified property as
22 set forth in subdivision (a)(3)(A) of this Section.
23 (b-5) Businesses designated as High Impact Businesses
24 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
25 (a)(3)(D), (a)(3)(G), (a)(3)(H), and (a)(3)(K) of this Section
26 shall qualify for the credits and exemptions described in the
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1 following Acts: Section 51 of the Retailers' Occupation Tax
2 Act, Section 9-222 and Section 9-222.1A of the Public
3 Utilities Act, and subsection (h) of Section 201 of the
4 Illinois Income Tax Act; however, the credits and exemptions
5 authorized under Section 9-222 and Section 9-222.1A of the
6 Public Utilities Act, and subsection (h) of Section 201 of the
7 Illinois Income Tax Act shall not be authorized until the new
8 electric generating facility, the new gasification facility,
9 the new transmission facility, the new, expanded, or reopened
10 coal mine, the new cultured cell material food production
11 facility, or the existing or planned grocery store is
12 operational, except that a new electric generating facility
13 whose primary fuel source is natural gas is eligible only for
14 the exemption under Section 5l of the Retailers' Occupation
15 Tax Act.
16 (b-6) Businesses designated as High Impact Businesses
17 pursuant to subdivision (a)(3)(E), (a)(3)(E-5), (A)(3)(I), or
18 (a)(3)(J) of this Section shall qualify for the exemptions
19 described in Section 5l of the Retailers' Occupation Tax Act;
20 any business so designated as a High Impact Business being,
21 for purposes of this Section, a "Wind Energy Business".
22 (b-7) Beginning on January 1, 2021, businesses designated
23 as High Impact Businesses by the Department shall qualify for
24 the High Impact Business construction jobs credit under
25 subsection (h-5) of Section 201 of the Illinois Income Tax Act
26 if the business meets the criteria set forth in subsection (i)
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1 of this Section. The total aggregate amount of credits awarded
2 under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
3 shall not exceed $20,000,000 in any State fiscal year.
4 (c) High Impact Businesses located in federally designated
5 foreign trade zones or sub-zones are also eligible for
6 additional credits, exemptions and deductions as described in
7 the following Acts: Section 9-221 and Section 9-222.1 of the
8 Public Utilities Act; and subsection (g) of Section 201, and
9 Section 203 of the Illinois Income Tax Act.
10 (d) Except for businesses contemplated under subdivision
11 (a)(3)(E), (a)(3)(E-5), (a)(3)(G), (a)(3)(H), (A)(3)(I),
12 (a)(3)(J), or (a)(3)(K) of this Section, existing Illinois
13 businesses which apply for designation as a High Impact
14 Business must provide the Department with the prospective plan
15 for which 1,500 full-time retained jobs would be eliminated in
16 the event that the business is not designated.
17 (e) Except for new businesses contemplated under
18 subdivision (a)(3)(E), subdivision (a)(3)(G), subdivision
19 (a)(3)(H), or subdivision (a)(3)(J) of this Section, new
20 proposed facilities which apply for designation as High Impact
21 Business must provide the Department with proof of alternative
22 non-Illinois sites which would receive the proposed investment
23 and job creation in the event that the business is not
24 designated as a High Impact Business.
25 (f) Except for businesses contemplated under subdivision
26 (a)(3)(E), subdivision (a)(3)(G), subdivision (a)(3)(H),
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1 subdivision (a)(3)(J), or (a)(3)(K) of this Section, in the
2 event that a business is designated a High Impact Business and
3 it is later determined after reasonable notice and an
4 opportunity for a hearing as provided under the Illinois
5 Administrative Procedure Act, that the business would have
6 placed in service in qualified property the investments and
7 created or retained the requisite number of jobs without the
8 benefits of the High Impact Business designation, the
9 Department shall be required to immediately revoke the
10 designation and notify the Director of the Department of
11 Revenue who shall begin proceedings to recover all wrongfully
12 exempted State taxes with interest.
13 (g) The Department shall revoke a High Impact Business
14 designation if the participating business fails to comply with
15 the terms and conditions of the designation.
16 (h) Prior to designating a business, the Department shall
17 provide the members of the General Assembly and Commission on
18 Government Forecasting and Accountability with a report
19 setting forth the terms and conditions of the designation and
20 guarantees that have been received by the Department in
21 relation to the proposed business being designated.
22 (i) High Impact Business construction jobs credit.
23 Beginning on January 1, 2021, a High Impact Business may
24 receive a tax credit against the tax imposed under subsections
25 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
26 amount equal to 50% of the amount of the incremental income tax
HB1700 Enrolled - 16 - LRB104 08228 SPS 18278 b
1 attributable to High Impact Business construction jobs credit
2 employees employed in the course of completing a High Impact
3 Business construction jobs project. However, the High Impact
4 Business construction jobs credit may equal 75% of the amount
5 of the incremental income tax attributable to High Impact
6 Business construction jobs credit employees if the High Impact
7 Business construction jobs credit project is located in an
8 underserved area.
9 The Department shall certify to the Department of Revenue:
10 (1) the identity of taxpayers that are eligible for the High
11 Impact Business construction jobs credit; and (2) the amount
12 of High Impact Business construction jobs credits that are
13 claimed pursuant to subsection (h-5) of Section 201 of the
14 Illinois Income Tax Act in each taxable year.
15 As used in this subsection (i):
16 "High Impact Business construction jobs credit" means an
17 amount equal to 50% (or 75% if the High Impact Business
18 construction project is located in an underserved area) of the
19 incremental income tax attributable to High Impact Business
20 construction job employees. The total aggregate amount of
21 credits awarded under the Blue Collar Jobs Act (Article 20 of
22 Public Act 101-9) shall not exceed $20,000,000 in any State
23 fiscal year
24 "High Impact Business construction job employee" means a
25 laborer or worker who is employed by a contractor or
26 subcontractor in the actual construction work on the site of a
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1 High Impact Business construction job project.
2 "High Impact Business construction jobs project" means
3 building a structure or building or making improvements of any
4 kind to real property, undertaken and commissioned by a
5 business that was designated as a High Impact Business by the
6 Department. The term "High Impact Business construction jobs
7 project" does not include the routine operation, routine
8 repair, or routine maintenance of existing structures,
9 buildings, or real property.
10 "Incremental income tax" means the total amount withheld
11 during the taxable year from the compensation of High Impact
12 Business construction job employees.
13 "Underserved area" means a geographic area that meets one
14 or more of the following conditions:
15 (1) the area has a poverty rate of at least 20%
16 according to the latest American Community Survey;
17 (2) 35% or more of the families with children in the
18 area are living below 130% of the poverty line, according
19 to the latest American Community Survey;
20 (3) at least 20% of the households in the area receive
21 assistance under the Supplemental Nutrition Assistance
22 Program (SNAP); or
23 (4) the area has an average unemployment rate, as
24 determined by the Illinois Department of Employment
25 Security, that is more than 120% of the national
26 unemployment average, as determined by the U.S. Department
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1 of Labor, for a period of at least 2 consecutive calendar
2 years preceding the date of the application.
3 (j) (Blank).
4 (j-5) Annually, until construction is completed, a company
5 seeking High Impact Business Construction Job credits shall
6 submit a report that, at a minimum, describes the projected
7 project scope, timeline, and anticipated budget. Once the
8 project has commenced, the annual report shall include actual
9 data for the prior year as well as projections for each
10 additional year through completion of the project. The
11 Department shall issue detailed reporting guidelines
12 prescribing the requirements of construction-related reports.
13 In order to receive credit for construction expenses, the
14 company must provide the Department with evidence that a
15 certified third-party executed an Agreed-Upon Procedure (AUP)
16 verifying the construction expenses or accept the standard
17 construction wage expense estimated by the Department.
18 Upon review of the final project scope, timeline, budget,
19 and AUP, the Department shall issue a tax credit certificate
20 reflecting a percentage of the total construction job wages
21 paid throughout the completion of the project.
22 (k) Upon 7 business days' notice, each taxpayer shall make
23 available to each State agency and to federal, State, or local
24 law enforcement agencies and prosecutors for inspection and
25 copying at a location within this State during reasonable
26 hours, the report under subsection (j-5).
HB1700 Enrolled - 19 - LRB104 08228 SPS 18278 b
1 (l) The changes made to this Section by Public Act
2 102-1125, other than the changes in subsection (a), apply to
3 High Impact Businesses that submit applications on or after
4 February 3, 2023 (the effective date of Public Act 102-1125).
5 (Source: P.A. 103-9, eff. 6-7-23; 103-561, eff. 1-1-24;
6 103-595, eff. 6-26-24; 103-605, eff. 7-1-24; 103-1066, eff.
7 2-20-25; 104-6, eff. 6-16-25; revised 12-12-25.)
8 Section 10. The Energy Transition Act is amended by
9 changing Sections 5-20 and 5-40 as follows:
10 (20 ILCS 730/5-20)
11 (Section scheduled to be repealed on September 15, 2045)
12 Sec. 5-20. Clean Jobs Workforce Network Program.
13 (a) As used in this Section, "Program" means the Clean
14 Jobs Workforce Network Program.
15 (b) Subject to appropriation, the Department shall develop
16 and, through Regional Administrators, administer the Clean
17 Jobs Workforce Network Program to create a network of 14
18 Program delivery Hub Sites with program elements delivered by
19 community-based organizations and their subcontractors
20 geographically distributed across the State including at least
21 one Hub Site located in or near each of the following areas:
22 Chicago (South Side), Chicago (Southwest and West Sides),
23 Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign,
24 Danville, Decatur, Carbondale, East St. Louis, Kankakee, and
HB1700 Enrolled - 20 - LRB104 08228 SPS 18278 b
1 Alton.
2 (c) In admitting program participants, for each workforce
3 Hub Site, the Regional Administrators shall:
4 (1) in each Hub Site where the applicant pool allows:
5 (A) dedicate at least one-third of program
6 placements to applicants who reside in a geographic
7 area that is impacted by economic and environmental
8 challenges, defined as an area that is both (i) an R3
9 Area, as defined pursuant to Section 10-40 of the
10 Cannabis Regulation and Tax Act, and (ii) an
11 environmental justice community, as defined by the
12 Illinois Power Agency, excluding any racial or ethnic
13 indicators used by the agency unless and until the
14 constitutional basis for their inclusion in
15 determining program admissions is established. Among
16 applicants that satisfy these criteria, preference
17 shall be given to applicants who face barriers to
18 employment, such as low educational attainment, prior
19 involvement with the criminal legal system, and
20 language barriers; and applicants that are graduates
21 of or currently enrolled in the foster care system;
22 and
23 (B) dedicate at least two-thirds of program
24 placements to applicants that satisfy the criteria in
25 paragraph (1) or who reside in a geographic area that
26 is impacted by economic or environmental challenges,
HB1700 Enrolled - 21 - LRB104 08228 SPS 18278 b
1 defined as an area that is either (i) an R3 Area, as
2 defined pursuant to Section 10-40 of the Cannabis
3 Regulation and Tax Act, or (ii) an environmental
4 justice community, as defined by the Illinois Power
5 Agency, excluding any racial or ethnic indicators used
6 by the agency unless and until the constitutional
7 basis for their inclusion in determining program
8 admissions is established. Among applicants that
9 satisfy these criteria, preference shall be given to
10 applicants who face barriers to employment, such as
11 low educational attainment, prior involvement with the
12 criminal legal system, and language barriers; and
13 applicants that are graduates of or currently enrolled
14 in the foster care system; and
15 (2) prioritize the remaining program placements for:
16 applicants who are displaced energy workers as defined in
17 the Energy Community Reinvestment Act; persons who face
18 barriers to employment, including low educational
19 attainment, prior involvement with the criminal legal
20 system, and language barriers; and applicants who are
21 graduates of or currently enrolled in the foster care
22 system, regardless of the applicant's area of residence.
23 The Department and Regional Administrators shall protect
24 the confidentiality of any personal information provided by
25 program applicants regarding the applicant's status as a
26 formerly incarcerated person or foster care recipient;
HB1700 Enrolled - 22 - LRB104 08228 SPS 18278 b
1 however, the Department or Regional Administrators may publish
2 aggregated data on the number of participants that were
3 formerly incarcerated or foster care recipients so long as
4 that publication protects the identities of those persons.
5 Any person who applies to the program may elect not to
6 share with the Department or Regional Administrators whether
7 he or she is a graduate or currently enrolled in the foster
8 care system or was formerly convicted.
9 (d) Program elements for each Hub Site shall be provided
10 by a community-based organization. The Department shall
11 initially select a community-based organization in each Hub
12 Site and shall subsequently select a community-based
13 organization in each Hub Site every 3 years. Community-based
14 organizations delivering program elements outlined in
15 subsection (e) may provide all elements required or may
16 subcontract to other entities for provision of portions of
17 program elements, including, but not limited to,
18 administrative soft and hard skills for program participants,
19 delivery of specific training in the core curriculum, or
20 provision of other support functions for program delivery
21 compliance.
22 (e) The Clean Jobs Workforce Hubs Network shall:
23 (1) coordinate with Energy Transition Navigators: (i)
24 to increase participation in the Clean Jobs Workforce
25 Network Program and clean energy and related sector
26 workforce and training opportunities; (ii) coordinate
HB1700 Enrolled - 23 - LRB104 08228 SPS 18278 b
1 recruitment, communications, and ongoing engagement with
2 potential employers, including, but not limited to,
3 activities such as job matchmaking initiatives, hosting
4 events such as job fairs, and collaborating with other Hub
5 Sites to identify and implement best practices for
6 employer engagement; and (iii) leverage community-based
7 organizations, educational institutions, and
8 community-based and labor-based training providers to
9 ensure program-eligible individuals across the State have
10 dedicated and sustained support to enter and complete the
11 career pipeline for clean energy and related sector jobs;
12 (2) develop formal partnerships, including formal
13 sector partnerships between community-based organizations
14 and entities that provide clean energy jobs, including
15 businesses, nonprofit organizations, and worker-owned
16 cooperatives, to ensure that Program participants have
17 priority access to employment training and hiring
18 opportunities; and
19 (3) implement the Clean Jobs Curriculum to provide,
20 including, but not limited to, training, certification
21 preparation, job readiness, and skill development,
22 including soft skills, math skills, technical skills,
23 certification test preparation, and other development
24 needed, to Program participants.
25 (f) Funding for the Program is subject to appropriation
26 from the Energy Transition Assistance Fund.
HB1700 Enrolled - 24 - LRB104 08228 SPS 18278 b
1 (f-5) The Department and the Department of Corrections
2 shall jointly conduct activities to support the recruitment of
3 eligible candidates to the Program, consistent with Section
4 5-8A-4.2 of the Unified Code of Corrections. The activities
5 shall include providing information on the community-based
6 program provider serving the area in which the individual
7 preparing for release is expected to reside and making
8 available a process through which an individual may choose to
9 consent to be contacted by that provider.
10 (g) The Department shall require submission of quarterly
11 reports, including program performance metrics by each Hub
12 Site to the Regional Administrator of their Program Delivery
13 Area. Program performance metrics include, but are not limited
14 to:
15 (1) demographic data, including racial, gender,
16 residency in eligible communities, and geographic
17 distribution data, on Program trainees entering and
18 graduating the Program;
19 (2) demographic data, including racial, gender,
20 residency in eligible communities, and geographic
21 distribution data, on Program trainees who are placed in
22 employment, including the percentages of trainees by race,
23 gender, and geographic categories in each individual job
24 type or category and whether employment is union,
25 nonunion, or nonunion via temporary agency;
26 (3) trainee job acquisition and retention statistics,
HB1700 Enrolled - 25 - LRB104 08228 SPS 18278 b
1 including the duration of employment (start and end dates
2 of hires) by race, gender, and geography;
3 (4) hourly wages, including hourly overtime pay rate,
4 and benefits of trainees placed into employment by race,
5 gender, and geography;
6 (5) percentage of jobs by race, gender, and geography
7 held by Program trainees or graduates that are full-time
8 equivalent positions, meaning that the position held is
9 full-time, direct, and permanent based on 2,080 hours
10 worked per year (paid directly by the employer, whose
11 activities, schedule, and manner of work the employer
12 controls, and receives pay and benefits in the same manner
13 as permanent employees); and
14 (6) qualitative data consisting of open-ended
15 reporting on pertinent issues, including, but not limited
16 to, qualitative descriptions accompanying metrics or
17 identifying key successes and challenges.
18 (h) Within 3 years after the effective date of this Act,
19 the Department shall select an independent evaluator to review
20 and prepare a report on the performance of the Program and
21 Regional Administrators.
22 (Source: P.A. 102-662, eff. 9-15-21; 103-595, eff. 7-1-25.)
23 (20 ILCS 730/5-40)
24 (Text of Section before amendment by P.A. 104-458)
25 (Section scheduled to be repealed on September 15, 2045)
HB1700 Enrolled - 26 - LRB104 08228 SPS 18278 b
1 Sec. 5-40. Illinois Climate Works Preapprenticeship
2 Program.
3 (a) Subject to appropriation, the Department shall
4 develop, and through Regional Administrators administer, the
5 Illinois Climate Works Preapprenticeship Program. The goal of
6 the Illinois Climate Works Preapprenticeship Program is to
7 create a network of hubs throughout the State that will
8 recruit, prescreen, and provide preapprenticeship skills
9 training, for which participants may attend free of charge and
10 receive a stipend, to create a qualified, diverse pipeline of
11 workers who are prepared for careers in the construction and
12 building trades and clean energy jobs opportunities therein.
13 Upon completion of the Illinois Climate Works
14 Preapprenticeship Program, the candidates will be connected to
15 and prepared to successfully complete an apprenticeship
16 program.
17 (b) Each Climate Works Hub that receives funding from the
18 Energy Transition Assistance Fund shall provide an annual
19 report to the Illinois Works Review Panel by April 1 of each
20 calendar year. The annual report shall include the following
21 information:
22 (1) a description of the Climate Works Hub's
23 recruitment, screening, and training efforts, including a
24 description of training related to construction and
25 building trades opportunities in clean energy jobs;
26 (2) the number of individuals who apply to,
HB1700 Enrolled - 27 - LRB104 08228 SPS 18278 b
1 participate in, and complete the Climate Works Hub's
2 program, broken down by race, gender, age, and veteran
3 status;
4 (3) the number of the individuals referenced in
5 paragraph (2) of this subsection who are initially
6 accepted and placed into apprenticeship programs in the
7 construction and building trades; and
8 (4) the number of individuals referenced in paragraph
9 (2) of this subsection who remain in apprenticeship
10 programs in the construction and building trades or have
11 become journeymen one calendar year after their placement,
12 as referenced in paragraph (3) of this subsection.
13 (c) Subject to appropriation, the Department shall provide
14 funding to 3 Climate Works Hubs throughout the State,
15 including one to the Illinois Department of Transportation
16 Region 1, one to the Illinois Department of Transportation
17 Regions 2 and 3, and one to the Illinois Department of
18 Transportation Regions 4 and 5. An eligible organization may
19 serve as the designated Climate Works Hub for all 5 regions.
20 Climate Works Hubs shall be awarded grants in multi-year
21 increments not to exceed 36 months. Each grant shall come with
22 a one year initial term, with the Department renewing each
23 year for 2 additional years unless the grantee either declines
24 to continue or fails to meet reasonable performance measures
25 that consider apprenticeship programs timeframes. The
26 Department may take into account experience and performance as
HB1700 Enrolled - 28 - LRB104 08228 SPS 18278 b
1 a previous grantee of the Climate Works Hub as part of the
2 selection criteria for subsequent years.
3 (d) Each Climate Works Hub that receives funding from the
4 Energy Transition Assistance Fund shall:
5 (1) recruit, prescreen, and provide preapprenticeship
6 training to equity investment eligible persons;
7 (2) provide training information related to
8 opportunities and certifications relevant to clean energy
9 jobs in the construction and building trades; and
10 (3) provide preapprentices with stipends they receive
11 that may vary depending on the occupation the individual
12 is training for.
13 (d-5) Priority shall be given to Climate Works Hubs that
14 have an agreement with North American Building Trades Unions
15 (NABTU) to utilize the Multi-Craft Core Curriculum or
16 successor curriculums.
17 (e) Funding for the Program is subject to appropriation
18 from the Energy Transition Assistance Fund.
19 (f) The Department shall adopt any rules deemed necessary
20 to implement this Section.
21 (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22;
22 102-1123, eff. 1-27-23.)
23 (Text of Section after amendment by P.A. 104-458)
24 (Section scheduled to be repealed on September 15, 2045)
25 Sec. 5-40. Illinois Climate Works Preapprenticeship
HB1700 Enrolled - 29 - LRB104 08228 SPS 18278 b
1 Program.
2 (a) Subject to appropriation, the Department shall
3 develop, and through Regional Administrators administer, the
4 Illinois Climate Works Preapprenticeship Program. The goal of
5 the Illinois Climate Works Preapprenticeship Program is to
6 create a network of hubs throughout the State that will
7 recruit, prescreen, and provide preapprenticeship skills
8 training, for which participants may attend free of charge and
9 receive a stipend, to create a qualified, diverse pipeline of
10 workers who are prepared for careers in the construction and
11 building trades and clean energy jobs opportunities therein.
12 Upon completion of the Illinois Climate Works
13 Preapprenticeship Program, the candidates will be connected to
14 and prepared to successfully complete an apprenticeship
15 program.
16 (b) Each Climate Works Hub that receives funding from the
17 Energy Transition Assistance Fund shall provide an annual
18 report to the Illinois Works Review Panel by April 1 of each
19 calendar year. The annual report shall include the following
20 information:
21 (1) a description of the Climate Works Hub's
22 recruitment, screening, and training efforts, including a
23 description of training related to construction and
24 building trades opportunities in clean energy jobs;
25 (2) the number of individuals who apply to,
26 participate in, and complete the Climate Works Hub's
HB1700 Enrolled - 30 - LRB104 08228 SPS 18278 b
1 program, broken down by race, gender, age, and veteran
2 status;
3 (3) the number of the individuals referenced in
4 paragraph (2) of this subsection who are initially
5 accepted and placed into apprenticeship programs in the
6 construction and building trades; and
7 (4) the number of individuals referenced in paragraph
8 (2) of this subsection who remain in apprenticeship
9 programs in the construction and building trades or have
10 become journeymen one calendar year after their placement,
11 as referenced in paragraph (3) of this subsection.
12 (c) Subject to appropriation, the Department shall provide
13 funding to 3 Climate Works Hubs throughout the State,
14 including one to the Illinois Department of Transportation
15 Region 1, one to the Illinois Department of Transportation
16 Regions 2 and 3, and one to the Illinois Department of
17 Transportation Regions 4 and 5. An eligible organization may
18 serve as the designated Climate Works Hub for all 5 regions.
19 Climate Works Hubs shall be awarded grants in multi-year
20 increments not to exceed 36 months. Each grant shall come with
21 a one year initial term, with the Department renewing each
22 year for 2 additional years unless the grantee either declines
23 to continue or fails to meet reasonable performance measures
24 that consider apprenticeship programs timeframes. The
25 Department may take into account experience and performance as
26 a previous grantee of the Climate Works Hub as part of the
HB1700 Enrolled - 31 - LRB104 08228 SPS 18278 b
1 selection criteria for subsequent years.
2 (d) Each Climate Works Hub that receives funding from the
3 Energy Transition Assistance Fund shall recruit, prescreen,
4 and provide preapprenticeship training to program
5 participants. Each Climate Works Hub that receives funding
6 from the Energy Transition Assistance Fund shall:
7 (1) in each Hub Site where the applicant pool allows,
8 comply with the following:
9 (A) dedicate at least one-third of Program
10 placements to applicants who reside in a geographic
11 area that is impacted by economic and environmental
12 challenges, defined as an area that is both (i) an R3
13 Area, as defined pursuant to Section 10-40 of the
14 Cannabis Regulation and Tax Act, and (ii) an
15 environmental justice community, as defined by the
16 Illinois Power Agency under the Illinois Power Agency
17 Act, excluding any racial or ethnic indicators used by
18 the Agency unless and until the constitutional basis
19 for the inclusion of the factors in determining
20 Program admissions is established; among applicants
21 that satisfy these criteria, preference shall be given
22 to applicants who face barriers to employment,
23 including low educational attainment, prior
24 involvement with the criminal justice system, and
25 language barriers, and applicants that are graduates
26 of or currently enrolled in the foster care system;
HB1700 Enrolled - 32 - LRB104 08228 SPS 18278 b
1 and
2 (B) dedicate at least two-thirds of Program
3 placements to applicants who reside in a geographic
4 area that is impacted by economic or environmental
5 challenges, defined as an area that is either (i) an R3
6 Area, as defined pursuant to Section 10-40 of the
7 Cannabis Regulation and Tax Act, or (ii) an
8 environmental justice community, as defined by the
9 Illinois Power Agency in the Illinois Power Agency
10 Act, excluding any racial or ethnic indicators used by
11 the Agency unless and until the constitutional basis
12 for the inclusion of the factors in determining
13 Program admissions is established; among applicants
14 that satisfy these criteria, preference shall be given
15 to applicants who face barriers to employment,
16 including low educational attainment, prior
17 involvement with the criminal legal system, and
18 language barriers, and applicants that are graduates
19 of or currently enrolled in the foster care system;
20 and
21 (C) prioritize the remaining Program placements
22 for the following:
23 (i) applicants who are displaced energy
24 workers, as defined in the Energy Community
25 Reinvestment Act;
26 (ii) persons who face barriers to employment,
HB1700 Enrolled - 33 - LRB104 08228 SPS 18278 b
1 including low educational attainment, prior
2 involvement with the criminal justice system, and
3 language barriers; and
4 (iii) applicants who are graduates of or
5 currently enrolled in the foster care system,
6 regardless of the applicant's area of residence;
7 (2) provide training information related to
8 opportunities and certifications relevant to clean energy
9 jobs in the construction and building trades; and
10 (3) provide preapprentices with stipends they receive
11 that may vary depending on the occupation the individual
12 is training for.
13 (d-5) Priority shall be given to Climate Works Hubs that
14 have an agreement with North American Building Trades Unions
15 (NABTU) to utilize the Multi-Craft Core Curriculum or
16 successor curriculums.
17 (e) Funding for the Program is subject to appropriation
18 from the Energy Transition Assistance Fund.
19 (e-5) The Department and the Department of Corrections
20 shall jointly conduct activities to support the recruitment of
21 eligible candidates to the Program, consistent with Section
22 5-8A-4.2 of the Unified Code of Corrections. The activities
23 shall include providing information on the community-based
24 program provider serving the area in which the individual
25 preparing for release is expected to reside and making
26 available a process through which an individual may choose to
HB1700 Enrolled - 34 - LRB104 08228 SPS 18278 b
1 consent to be contacted by that provider.
2 (f) The Department shall adopt any rules deemed necessary
3 to implement this Section.
4 (Source: P.A. 104-458, eff. 6-1-26.)
5 Section 15. The Illinois Power Agency Act is amended by
6 changing Sections 1-56 and 1-75 as follows:
7 (20 ILCS 3855/1-56)
8 (Text of Section before amendment by P.A. 104-458)
9 Sec. 1-56. Illinois Power Agency Renewable Energy
10 Resources Fund; Illinois Solar for All Program.
11 (a) The Illinois Power Agency Renewable Energy Resources
12 Fund is created as a special fund in the State treasury.
13 (b) The Illinois Power Agency Renewable Energy Resources
14 Fund shall be administered by the Agency as described in this
15 subsection (b), provided that the changes to this subsection
16 (b) made by Public Act 99-906 shall not interfere with
17 existing contracts under this Section.
18 (1) The Illinois Power Agency Renewable Energy
19 Resources Fund shall be used to purchase renewable energy
20 credits according to any approved procurement plan
21 developed by the Agency prior to June 1, 2017.
22 (2) The Illinois Power Agency Renewable Energy
23 Resources Fund shall also be used to create the Illinois
24 Solar for All Program, which provides incentives for
HB1700 Enrolled - 35 - LRB104 08228 SPS 18278 b
1 low-income distributed generation and community solar
2 projects, and other associated approved expenditures. The
3 objectives of the Illinois Solar for All Program are to
4 bring photovoltaics to low-income communities in this
5 State in a manner that maximizes the development of new
6 photovoltaic generating facilities, to create a long-term,
7 low-income solar marketplace throughout this State, to
8 integrate, through interaction with stakeholders, with
9 existing energy efficiency initiatives, and to minimize
10 administrative costs. The Illinois Solar for All Program
11 shall be implemented in a manner that seeks to minimize
12 administrative costs, and maximize efficiencies and
13 synergies available through coordination with similar
14 initiatives, including the Adjustable Block program
15 described in subparagraphs (K) through (M) of paragraph
16 (1) of subsection (c) of Section 1-75, energy efficiency
17 programs, job training programs, and community action
18 agencies. The Agency shall strive to ensure that renewable
19 energy credits procured through the Illinois Solar for All
20 Program and each of its subprograms are purchased from
21 projects across the breadth of low-income and
22 environmental justice communities in Illinois, including
23 both urban and rural communities, are not concentrated in
24 a few communities, and do not exclude particular
25 low-income or environmental justice communities. The
26 Agency shall include a description of its proposed
HB1700 Enrolled - 36 - LRB104 08228 SPS 18278 b
1 approach to the design, administration, implementation and
2 evaluation of the Illinois Solar for All Program, as part
3 of the long-term renewable resources procurement plan
4 authorized by subsection (c) of Section 1-75 of this Act,
5 and the program shall be designed to grow the low-income
6 solar market. The Agency or utility, as applicable, shall
7 purchase renewable energy credits from the (i)
8 photovoltaic distributed renewable energy generation
9 projects and (ii) community solar projects that are
10 procured under procurement processes authorized by the
11 long-term renewable resources procurement plans approved
12 by the Commission.
13 The Illinois Solar for All Program shall include the
14 program offerings described in subparagraphs (A) through
15 (E) of this paragraph (2), which the Agency shall
16 implement through contracts with third-party providers
17 and, subject to appropriation, pay the approximate amounts
18 identified using monies available in the Illinois Power
19 Agency Renewable Energy Resources Fund. Each contract that
20 provides for the installation of solar facilities shall
21 provide that the solar facilities will produce energy and
22 economic benefits, at a level determined by the Agency to
23 be reasonable, for the participating low-income customers.
24 The monies available in the Illinois Power Agency
25 Renewable Energy Resources Fund and not otherwise
26 committed to contracts executed under subsection (i) of
HB1700 Enrolled - 37 - LRB104 08228 SPS 18278 b
1 this Section, as well as, in the case of the programs
2 described under subparagraphs (A) through (E) of this
3 paragraph (2), funding authorized pursuant to subparagraph
4 (O) of paragraph (1) of subsection (c) of Section 1-75 of
5 this Act, shall initially be allocated among the programs
6 described in this paragraph (2), as follows: 35% of these
7 funds shall be allocated to programs described in
8 subparagraphs (A) and (E) of this paragraph (2), 40% of
9 these funds shall be allocated to programs described in
10 subparagraph (B) of this paragraph (2), and 25% of these
11 funds shall be allocated to programs described in
12 subparagraph (C) of this paragraph (2). The allocation of
13 funds among subparagraphs (A), (B), (C), and (E) of this
14 paragraph (2) may be changed if the Agency, after
15 receiving input through a stakeholder process, determines
16 incentives in subparagraphs (A), (B), (C), or (E) of this
17 paragraph (2) have not been adequately subscribed to fully
18 utilize available Illinois Solar for All Program funds.
19 Contracts that will be paid with funds in the Illinois
20 Power Agency Renewable Energy Resources Fund shall be
21 executed by the Agency. Contracts that will be paid with
22 funds collected by an electric utility shall be executed
23 by the electric utility.
24 Contracts under the Illinois Solar for All Program
25 shall include an approach, as set forth in the long-term
26 renewable resources procurement plans, to ensure the
HB1700 Enrolled - 38 - LRB104 08228 SPS 18278 b
1 wholesale market value of the energy is credited to
2 participating low-income customers or organizations and to
3 ensure tangible economic benefits flow directly to program
4 participants, except in the case of low-income
5 multi-family housing where the low-income customer does
6 not directly pay for energy. Priority shall be given to
7 projects that demonstrate meaningful involvement of
8 low-income community members in designing the initial
9 proposals. Acceptable proposals to implement projects must
10 demonstrate the applicant's ability to conduct initial
11 community outreach, education, and recruitment of
12 low-income participants in the community. Projects must
13 include job training opportunities if available, with the
14 specific level of trainee usage to be determined through
15 the Agency's long-term renewable resources procurement
16 plan, and the Illinois Solar for All Program Administrator
17 shall coordinate with the job training programs described
18 in paragraph (1) of subsection (a) of Section 16-108.12 of
19 the Public Utilities Act and in the Energy Transition Act.
20 The Agency shall make every effort to ensure that
21 small and emerging businesses, particularly those located
22 in low-income and environmental justice communities, are
23 able to participate in the Illinois Solar for All Program.
24 These efforts may include, but shall not be limited to,
25 proactive support from the program administrator,
26 different or preferred access to subprograms and
HB1700 Enrolled - 39 - LRB104 08228 SPS 18278 b
1 administrator-identified customers or grassroots
2 education provider-identified customers, and different
3 incentive levels. The Agency shall report on progress and
4 barriers to participation of small and emerging businesses
5 in the Illinois Solar for All Program at least once a year.
6 The report shall be made available on the Agency's website
7 and, in years when the Agency is updating its long-term
8 renewable resources procurement plan, included in that
9 Plan.
10 (A) Low-income single-family and small multifamily
11 solar incentive. This program will provide incentives
12 to low-income customers, either directly or through
13 solar providers, to increase the participation of
14 low-income households in photovoltaic on-site
15 distributed generation at residential buildings
16 containing one to 4 units. Companies participating in
17 this program that install solar panels shall commit to
18 hiring job trainees for a portion of their low-income
19 installations, and an administrator shall facilitate
20 partnering the companies that install solar panels
21 with entities that provide solar panel installation
22 job training. It is a goal of this program that a
23 minimum of 25% of the incentives for this program be
24 allocated to projects located within environmental
25 justice communities. Contracts entered into under this
26 paragraph may be entered into with an entity that will
HB1700 Enrolled - 40 - LRB104 08228 SPS 18278 b
1 develop and administer the program and shall also
2 include contracts for renewable energy credits from
3 the photovoltaic distributed generation that is the
4 subject of the program, as set forth in the long-term
5 renewable resources procurement plan. Additionally:
6 (i) The Agency shall reserve a portion of this
7 program for projects that promote energy
8 sovereignty through ownership of projects by
9 low-income households, not-for-profit
10 organizations providing services to low-income
11 households, affordable housing owners, community
12 cooperatives, or community-based limited liability
13 companies providing services to low-income
14 households. Projects that feature energy ownership
15 should ensure that local people have control of
16 the project and reap benefits from the project
17 over and above energy bill savings. The Agency may
18 consider the inclusion of projects that promote
19 ownership over time or that involve partial
20 project ownership by communities, as promoting
21 energy sovereignty. Incentives for projects that
22 promote energy sovereignty may be higher than
23 incentives for equivalent projects that do not
24 promote energy sovereignty under this same
25 program.
26 (ii) Through its long-term renewable resources
HB1700 Enrolled - 41 - LRB104 08228 SPS 18278 b
1 procurement plan, the Agency shall consider
2 additional program and contract requirements to
3 ensure faithful compliance by applicants
4 benefiting from preferences for projects
5 designated to promote energy sovereignty. The
6 Agency shall make every effort to enable solar
7 providers already participating in the Adjustable
8 Block Program under subparagraph (K) of paragraph
9 (1) of subsection (c) of Section 1-75 of this Act,
10 and particularly solar providers developing
11 projects under item (i) of subparagraph (K) of
12 paragraph (1) of subsection (c) of Section 1-75 of
13 this Act to easily participate in the Low-Income
14 Distributed Generation Incentive program described
15 under this subparagraph (A), and vice versa. This
16 effort may include, but shall not be limited to,
17 utilizing similar or the same application systems
18 and processes, similar or the same forms and
19 formats of communication, and providing active
20 outreach to companies participating in one program
21 but not the other. The Agency shall report on
22 efforts made to encourage this cross-participation
23 in its long-term renewable resources procurement
24 plan.
25 (B) Low-Income Community Solar Project Initiative.
26 Incentives shall be offered to low-income customers,
HB1700 Enrolled - 42 - LRB104 08228 SPS 18278 b
1 either directly or through developers, to increase the
2 participation of low-income subscribers of community
3 solar projects. The developer of each project shall
4 identify its partnership with community stakeholders
5 regarding the location, development, and participation
6 in the project, provided that nothing shall preclude a
7 project from including an anchor tenant that does not
8 qualify as low-income. Companies participating in this
9 program that develop or install solar projects shall
10 commit to hiring job trainees for a portion of their
11 low-income installations, and an administrator shall
12 facilitate partnering the companies that install solar
13 projects with entities that provide solar installation
14 and related job training. It is a goal of this program
15 that a minimum of 25% of the incentives for this
16 program be allocated to community photovoltaic
17 projects in environmental justice communities. The
18 Agency shall reserve a portion of this program for
19 projects that promote energy sovereignty through
20 ownership of projects by low-income households,
21 not-for-profit organizations providing services to
22 low-income households, affordable housing owners, or
23 community-based limited liability companies providing
24 services to low-income households. Projects that
25 feature energy ownership should ensure that local
26 people have control of the project and reap benefits
HB1700 Enrolled - 43 - LRB104 08228 SPS 18278 b
1 from the project over and above energy bill savings.
2 The Agency may consider the inclusion of projects that
3 promote ownership over time or that involve partial
4 project ownership by communities, as promoting energy
5 sovereignty. Incentives for projects that promote
6 energy sovereignty may be higher than incentives for
7 equivalent projects that do not promote energy
8 sovereignty under this same program. Contracts entered
9 into under this paragraph may be entered into with
10 developers and shall also include contracts for
11 renewable energy credits related to the program.
12 (C) Incentives for non-profits and public
13 facilities. Under this program funds shall be used to
14 support on-site photovoltaic distributed renewable
15 energy generation devices to serve the load associated
16 with not-for-profit customers and to support
17 photovoltaic distributed renewable energy generation
18 that uses photovoltaic technology to serve the load
19 associated with public sector customers taking service
20 at public buildings. Companies participating in this
21 program that develop or install solar projects shall
22 commit to hiring job trainees for a portion of their
23 low-income installations, and an administrator shall
24 facilitate partnering the companies that install solar
25 projects with entities that provide solar installation
26 and related job training. Through its long-term
HB1700 Enrolled - 44 - LRB104 08228 SPS 18278 b
1 renewable resources procurement plan, the Agency shall
2 consider additional program and contract requirements
3 to ensure faithful compliance by applicants benefiting
4 from preferences for projects designated to promote
5 energy sovereignty. It is a goal of this program that
6 at least 25% of the incentives for this program be
7 allocated to projects located in environmental justice
8 communities. Contracts entered into under this
9 paragraph may be entered into with an entity that will
10 develop and administer the program or with developers
11 and shall also include contracts for renewable energy
12 credits related to the program.
13 (D) (Blank).
14 (E) Low-income large multifamily solar incentive.
15 This program shall provide incentives to low-income
16 customers, either directly or through solar providers,
17 to increase the participation of low-income households
18 in photovoltaic on-site distributed generation at
19 residential buildings with 5 or more units. Companies
20 participating in this program that develop or install
21 solar projects shall commit to hiring job trainees for
22 a portion of their low-income installations, and an
23 administrator shall facilitate partnering the
24 companies that install solar projects with entities
25 that provide solar installation and related job
26 training. It is a goal of this program that a minimum
HB1700 Enrolled - 45 - LRB104 08228 SPS 18278 b
1 of 25% of the incentives for this program be allocated
2 to projects located within environmental justice
3 communities. The Agency shall reserve a portion of
4 this program for projects that promote energy
5 sovereignty through ownership of projects by
6 low-income households, not-for-profit organizations
7 providing services to low-income households,
8 affordable housing owners, or community-based limited
9 liability companies providing services to low-income
10 households. Projects that feature energy ownership
11 should ensure that local people have control of the
12 project and reap benefits from the project over and
13 above energy bill savings. The Agency may consider the
14 inclusion of projects that promote ownership over time
15 or that involve partial project ownership by
16 communities, as promoting energy sovereignty.
17 Incentives for projects that promote energy
18 sovereignty may be higher than incentives for
19 equivalent projects that do not promote energy
20 sovereignty under this same program.
21 The requirement that a qualified person, as defined in
22 paragraph (1) of subsection (i) of this Section, install
23 photovoltaic devices does not apply to the Illinois Solar
24 for All Program described in this subsection (b).
25 In addition to the programs outlined in paragraphs (A)
26 through (E), the Agency and other parties may propose
HB1700 Enrolled - 46 - LRB104 08228 SPS 18278 b
1 additional programs through the Long-Term Renewable
2 Resources Procurement Plan developed and approved under
3 paragraph (5) of subsection (b) of Section 16-111.5 of the
4 Public Utilities Act. Additional programs may target
5 market segments not specified above and may also include
6 incentives targeted to increase the uptake of
7 nonphotovoltaic technologies by low-income customers,
8 including energy storage paired with photovoltaics, if the
9 Commission determines that the Illinois Solar for All
10 Program would provide greater benefits to the public
11 health and well-being of low-income residents through also
12 supporting that additional program versus supporting
13 programs already authorized.
14 (3) Costs associated with the Illinois Solar for All
15 Program and its components described in paragraph (2) of
16 this subsection (b), including, but not limited to, costs
17 associated with procuring experts, consultants, and the
18 program administrator referenced in this subsection (b)
19 and related incremental costs, costs related to income
20 verification and facilitating customer participation in
21 the program, and costs related to the evaluation of the
22 Illinois Solar for All Program, may be paid for using
23 monies in the Illinois Power Agency Renewable Energy
24 Resources Fund, and funds allocated pursuant to
25 subparagraph (O) of paragraph (1) of subsection (c) of
26 Section 1-75, but the Agency or program administrator
HB1700 Enrolled - 47 - LRB104 08228 SPS 18278 b
1 shall strive to minimize costs in the implementation of
2 the program. The Agency or contracting electric utility
3 shall purchase renewable energy credits from generation
4 that is the subject of a contract under subparagraphs (A)
5 through (E) of paragraph (2) of this subsection (b), and
6 may pay for such renewable energy credits through an
7 upfront payment per installed kilowatt of nameplate
8 capacity paid once the device is interconnected at the
9 distribution system level of the interconnecting utility
10 and verified as energized. Payments for renewable energy
11 credits shall be in exchange for all renewable energy
12 credits generated by the system during the first 15 years
13 of operation and shall be structured to overcome barriers
14 to participation in the solar market by the low-income
15 community. The incentives provided for in this Section may
16 be implemented through the pricing of renewable energy
17 credits where the prices paid for the credits are higher
18 than the prices from programs offered under subsection (c)
19 of Section 1-75 of this Act to account for the additional
20 capital necessary to successfully access targeted market
21 segments. The Agency or contracting electric utility shall
22 retire any renewable energy credits purchased under this
23 program and the credits shall count toward the obligation
24 under subsection (c) of Section 1-75 of this Act for the
25 electric utility to which the project is interconnected,
26 if applicable.
HB1700 Enrolled - 48 - LRB104 08228 SPS 18278 b
1 The Agency shall direct that up to 5% of the funds
2 available under the Illinois Solar for All Program to
3 community-based groups and other qualifying organizations
4 to assist in community-driven education efforts related to
5 the Illinois Solar for All Program, including general
6 energy education, job training program outreach efforts,
7 and other activities deemed to be qualified by the Agency.
8 Grassroots education funding shall not be used to support
9 the marketing by solar project development firms and
10 organizations, unless such education provides equal
11 opportunities for all applicable firms and organizations.
12 (4) The Agency shall, consistent with the requirements
13 of this subsection (b), propose the Illinois Solar for All
14 Program terms, conditions, and requirements, including the
15 prices to be paid for renewable energy credits, and which
16 prices may be determined through a formula, through the
17 development, review, and approval of the Agency's
18 long-term renewable resources procurement plan described
19 in subsection (c) of Section 1-75 of this Act and Section
20 16-111.5 of the Public Utilities Act. In the course of the
21 Commission proceeding initiated to review and approve the
22 plan, including the Illinois Solar for All Program
23 proposed by the Agency, a party may propose an additional
24 low-income solar or solar incentive program, or
25 modifications to the programs proposed by the Agency, and
26 the Commission may approve an additional program, or
HB1700 Enrolled - 49 - LRB104 08228 SPS 18278 b
1 modifications to the Agency's proposed program, if the
2 additional or modified program more effectively maximizes
3 the benefits to low-income customers after taking into
4 account all relevant factors, including, but not limited
5 to, the extent to which a competitive market for
6 low-income solar has developed. Following the Commission's
7 approval of the Illinois Solar for All Program, the Agency
8 or a party may propose adjustments to the program terms,
9 conditions, and requirements, including the price offered
10 to new systems, to ensure the long-term viability and
11 success of the program. The Commission shall review and
12 approve any modifications to the program through the plan
13 revision process described in Section 16-111.5 of the
14 Public Utilities Act.
15 (5) The Agency shall issue a request for
16 qualifications for a third-party program administrator or
17 administrators to administer all or a portion of the
18 Illinois Solar for All Program. The third-party program
19 administrator shall be chosen through a competitive bid
20 process based on selection criteria and requirements
21 developed by the Agency, including, but not limited to,
22 experience in administering low-income energy programs and
23 overseeing statewide clean energy or energy efficiency
24 services. If the Agency retains a program administrator or
25 administrators to implement all or a portion of the
26 Illinois Solar for All Program, each administrator shall
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1 periodically submit reports to the Agency and Commission
2 for each program that it administers, at appropriate
3 intervals to be identified by the Agency in its long-term
4 renewable resources procurement plan, provided that the
5 reporting interval is at least quarterly. The third-party
6 program administrator may be, but need not be, the same
7 administrator as for the Adjustable Block program
8 described in subparagraphs (K) through (M) of paragraph
9 (1) of subsection (c) of Section 1-75. The Agency, through
10 its long-term renewable resources procurement plan
11 approval process, shall also determine if individual
12 subprograms of the Illinois Solar for All Program are
13 better served by a different or separate Program
14 Administrator.
15 The third-party administrator's responsibilities
16 shall also include facilitating placement for graduates of
17 Illinois-based renewable energy-specific job training
18 programs, including the Clean Jobs Workforce Network
19 Program and the Illinois Climate Works Preapprenticeship
20 Program administered by the Department of Commerce and
21 Economic Opportunity and programs administered under
22 Section 16-108.12 of the Public Utilities Act. To increase
23 the uptake of trainees by participating firms, the
24 administrator shall also develop a web-based clearinghouse
25 for information available to both job training program
26 graduates and firms participating, directly or indirectly,
HB1700 Enrolled - 51 - LRB104 08228 SPS 18278 b
1 in Illinois solar incentive programs. The program
2 administrator shall also coordinate its activities with
3 entities implementing electric and natural gas
4 income-qualified energy efficiency programs, including
5 customer referrals to and from such programs, and connect
6 prospective low-income solar customers with any existing
7 deferred maintenance programs where applicable.
8 (6) The long-term renewable resources procurement plan
9 shall also provide for an independent evaluation of the
10 Illinois Solar for All Program. At least every 2 years,
11 the Agency shall select an independent evaluator to review
12 and report on the Illinois Solar for All Program and the
13 performance of the third-party program administrator of
14 the Illinois Solar for All Program. The evaluation shall
15 be based on objective criteria developed through a public
16 stakeholder process. The process shall include feedback
17 and participation from Illinois Solar for All Program
18 stakeholders, including participants and organizations in
19 environmental justice and historically underserved
20 communities. The report shall include a summary of the
21 evaluation of the Illinois Solar for All Program based on
22 the stakeholder developed objective criteria. The report
23 shall include the number of projects installed; the total
24 installed capacity in kilowatts; the average cost per
25 kilowatt of installed capacity to the extent reasonably
26 obtainable by the Agency; the number of jobs or job
HB1700 Enrolled - 52 - LRB104 08228 SPS 18278 b
1 opportunities created; economic, social, and environmental
2 benefits created; and the total administrative costs
3 expended by the Agency and program administrator to
4 implement and evaluate the program. The report shall be
5 delivered to the Commission and posted on the Agency's
6 website, and shall be used, as needed, to revise the
7 Illinois Solar for All Program. The Commission shall also
8 consider the results of the evaluation as part of its
9 review of the long-term renewable resources procurement
10 plan under subsection (c) of Section 1-75 of this Act.
11 (7) If additional funding for the programs described
12 in this subsection (b) is available under subsection (k)
13 of Section 16-108 of the Public Utilities Act, then the
14 Agency shall submit a procurement plan to the Commission
15 no later than September 1, 2018, that proposes how the
16 Agency will procure programs on behalf of the applicable
17 utility. After notice and hearing, the Commission shall
18 approve, or approve with modification, the plan no later
19 than November 1, 2018.
20 (8) As part of the development and update of the
21 long-term renewable resources procurement plan authorized
22 by subsection (c) of Section 1-75 of this Act, the Agency
23 shall plan for: (A) actions to refer customers from the
24 Illinois Solar for All Program to electric and natural gas
25 income-qualified energy efficiency programs, and vice
26 versa, with the goal of increasing participation in both
HB1700 Enrolled - 53 - LRB104 08228 SPS 18278 b
1 of these programs; (B) effective procedures for data
2 sharing, as needed, to effectuate referrals between the
3 Illinois Solar for All Program and both electric and
4 natural gas income-qualified energy efficiency programs,
5 including sharing customer information directly with the
6 utilities, as needed and appropriate; and (C) efforts to
7 identify any existing deferred maintenance programs for
8 which prospective Solar for All Program customers may be
9 eligible and connect prospective customers for whom
10 deferred maintenance is or may be a barrier to solar
11 installation to those programs.
12 As used in this subsection (b), "low-income households"
13 means persons and families whose income does not exceed 80% of
14 area median income, adjusted for family size and revised every
15 year.
16 For the purposes of this subsection (b), the Agency shall
17 define "environmental justice community" based on the
18 methodologies and findings established by the Agency and the
19 Administrator for the Illinois Solar for All Program in its
20 initial long-term renewable resources procurement plan and as
21 updated by the Agency and the Administrator for the Illinois
22 Solar for All Program as part of the long-term renewable
23 resources procurement plan update.
24 (b-5) After the receipt of all payments required by
25 Section 16-115D of the Public Utilities Act, no additional
26 funds shall be deposited into the Illinois Power Agency
HB1700 Enrolled - 54 - LRB104 08228 SPS 18278 b
1 Renewable Energy Resources Fund unless directed by order of
2 the Commission.
3 (b-10) After the receipt of all payments required by
4 Section 16-115D of the Public Utilities Act and payment in
5 full of all contracts executed by the Agency under subsections
6 (b) and (i) of this Section, if the balance of the Illinois
7 Power Agency Renewable Energy Resources Fund is under $5,000,
8 then the Fund shall be inoperative and any remaining funds and
9 any funds submitted to the Fund after that date, shall be
10 transferred to the Supplemental Low-Income Energy Assistance
11 Fund for use in the Low-Income Home Energy Assistance Program,
12 as authorized by the Energy Assistance Act.
13 (b-15) The prevailing wage requirements set forth in the
14 Prevailing Wage Act apply to each project that is undertaken
15 pursuant to one or more of the programs of incentives and
16 initiatives described in subsection (b) of this Section and
17 for which a project application is submitted to the program
18 after the effective date of this amendatory Act of the 103rd
19 General Assembly, except (i) projects that serve single-family
20 or multi-family residential buildings and (ii) projects with
21 an aggregate capacity of less than 100 kilowatts that serve
22 houses of worship. The Agency shall require verification that
23 all construction performed on a project by the renewable
24 energy credit delivery contract holder, its contractors, or
25 its subcontractors relating to the construction of the
26 facility is performed by workers receiving an amount for that
HB1700 Enrolled - 55 - LRB104 08228 SPS 18278 b
1 work that is greater than or equal to the general prevailing
2 rate of wages as that term is defined in the Prevailing Wage
3 Act, and the Agency may adjust renewable energy credit prices
4 to account for increased labor costs.
5 In this subsection (b-15), "house of worship" has the
6 meaning given in subparagraph (Q) of paragraph (1) of
7 subsection (c) of Section 1-75.
8 (c) (Blank).
9 (d) (Blank).
10 (e) All renewable energy credits procured using monies
11 from the Illinois Power Agency Renewable Energy Resources Fund
12 shall be permanently retired.
13 (f) The selection of one or more third-party program
14 managers or administrators, the selection of the independent
15 evaluator, and the procurement processes described in this
16 Section are exempt from the requirements of the Illinois
17 Procurement Code, under Section 20-10 of that Code.
18 (g) All disbursements from the Illinois Power Agency
19 Renewable Energy Resources Fund shall be made only upon
20 warrants of the Comptroller drawn upon the Treasurer as
21 custodian of the Fund upon vouchers signed by the Director or
22 by the person or persons designated by the Director for that
23 purpose. The Comptroller is authorized to draw the warrant
24 upon vouchers so signed. The Treasurer shall accept all
25 warrants so signed and shall be released from liability for
26 all payments made on those warrants.
HB1700 Enrolled - 56 - LRB104 08228 SPS 18278 b
1 (h) The Illinois Power Agency Renewable Energy Resources
2 Fund shall not be subject to sweeps, administrative charges,
3 or chargebacks, including, but not limited to, those
4 authorized under Section 8h of the State Finance Act, that
5 would in any way result in the transfer of any funds from this
6 Fund to any other fund of this State or in having any such
7 funds utilized for any purpose other than the express purposes
8 set forth in this Section.
9 (h-5) The Agency may assess fees to each bidder to recover
10 the costs incurred in connection with a procurement process
11 held under this Section. Fees collected from bidders shall be
12 deposited into the Renewable Energy Resources Fund.
13 (i) Supplemental procurement process.
14 (1) Within 90 days after June 30, 2014 (the effective
15 date of Public Act 98-672), the Agency shall develop a
16 one-time supplemental procurement plan limited to the
17 procurement of renewable energy credits, if available,
18 from new or existing photovoltaics, including, but not
19 limited to, distributed photovoltaic generation. Nothing
20 in this subsection (i) requires procurement of wind
21 generation through the supplemental procurement.
22 Renewable energy credits procured from new
23 photovoltaics, including, but not limited to, distributed
24 photovoltaic generation, under this subsection (i) must be
25 procured from devices installed by a qualified person. In
26 its supplemental procurement plan, the Agency shall
HB1700 Enrolled - 57 - LRB104 08228 SPS 18278 b
1 establish contractually enforceable mechanisms for
2 ensuring that the installation of new photovoltaics is
3 performed by a qualified person.
4 For the purposes of this paragraph (1), "qualified
5 person" means a person who performs installations of
6 photovoltaics, including, but not limited to, distributed
7 photovoltaic generation, and who: (A) has completed an
8 apprenticeship as a journeyman electrician from a United
9 States Department of Labor registered electrical
10 apprenticeship and training program and received a
11 certification of satisfactory completion; or (B) does not
12 currently meet the criteria under clause (A) of this
13 paragraph (1), but is enrolled in a United States
14 Department of Labor registered electrical apprenticeship
15 program, provided that the person is directly supervised
16 by a person who meets the criteria under clause (A) of this
17 paragraph (1); or (C) has obtained one of the following
18 credentials in addition to attesting to satisfactory
19 completion of at least 5 years or 8,000 hours of
20 documented hands-on electrical experience: (i) a North
21 American Board of Certified Energy Practitioners (NABCEP)
22 Installer Certificate for Solar PV; (ii) an Underwriters
23 Laboratories (UL) PV Systems Installer Certificate; (iii)
24 an Electronics Technicians Association, International
25 (ETAI) Level 3 PV Installer Certificate; or (iv) an
26 Associate in Applied Science degree from an Illinois
HB1700 Enrolled - 58 - LRB104 08228 SPS 18278 b
1 Community College Board approved community college program
2 in renewable energy or a distributed generation
3 technology.
4 For the purposes of this paragraph (1), "directly
5 supervised" means that there is a qualified person who
6 meets the qualifications under clause (A) of this
7 paragraph (1) and who is available for supervision and
8 consultation regarding the work performed by persons under
9 clause (B) of this paragraph (1), including a final
10 inspection of the installation work that has been directly
11 supervised to ensure safety and conformity with applicable
12 codes.
13 For the purposes of this paragraph (1), "install"
14 means the major activities and actions required to
15 connect, in accordance with applicable building and
16 electrical codes, the conductors, connectors, and all
17 associated fittings, devices, power outlets, or
18 apparatuses mounted at the premises that are directly
19 involved in delivering energy to the premises' electrical
20 wiring from the photovoltaics, including, but not limited
21 to, to distributed photovoltaic generation.
22 The renewable energy credits procured pursuant to the
23 supplemental procurement plan shall be procured using up
24 to $30,000,000 from the Illinois Power Agency Renewable
25 Energy Resources Fund. The Agency shall not plan to use
26 funds from the Illinois Power Agency Renewable Energy
HB1700 Enrolled - 59 - LRB104 08228 SPS 18278 b
1 Resources Fund in excess of the monies on deposit in such
2 fund or projected to be deposited into such fund. The
3 supplemental procurement plan shall ensure adequate,
4 reliable, affordable, efficient, and environmentally
5 sustainable renewable energy resources (including credits)
6 at the lowest total cost over time, taking into account
7 any benefits of price stability.
8 To the extent available, 50% of the renewable energy
9 credits procured from distributed renewable energy
10 generation shall come from devices of less than 25
11 kilowatts in nameplate capacity. Procurement of renewable
12 energy credits from distributed renewable energy
13 generation devices shall be done through multi-year
14 contracts of no less than 5 years. The Agency shall create
15 credit requirements for counterparties. In order to
16 minimize the administrative burden on contracting
17 entities, the Agency shall solicit the use of third
18 parties to aggregate distributed renewable energy. These
19 third parties shall enter into and administer contracts
20 with individual distributed renewable energy generation
21 device owners. An individual distributed renewable energy
22 generation device owner shall have the ability to measure
23 the output of his or her distributed renewable energy
24 generation device.
25 In developing the supplemental procurement plan, the
26 Agency shall hold at least one workshop open to the public
HB1700 Enrolled - 60 - LRB104 08228 SPS 18278 b
1 within 90 days after June 30, 2014 (the effective date of
2 Public Act 98-672) and shall consider any comments made by
3 stakeholders or the public. Upon development of the
4 supplemental procurement plan within this 90-day period,
5 copies of the supplemental procurement plan shall be
6 posted and made publicly available on the Agency's and
7 Commission's websites. All interested parties shall have
8 14 days following the date of posting to provide comment
9 to the Agency on the supplemental procurement plan. All
10 comments submitted to the Agency shall be specific,
11 supported by data or other detailed analyses, and, if
12 objecting to all or a portion of the supplemental
13 procurement plan, accompanied by specific alternative
14 wording or proposals. All comments shall be posted on the
15 Agency's and Commission's websites. Within 14 days
16 following the end of the 14-day review period, the Agency
17 shall revise the supplemental procurement plan as
18 necessary based on the comments received and file its
19 revised supplemental procurement plan with the Commission
20 for approval.
21 (2) Within 5 days after the filing of the supplemental
22 procurement plan at the Commission, any person objecting
23 to the supplemental procurement plan shall file an
24 objection with the Commission. Within 10 days after the
25 filing, the Commission shall determine whether a hearing
26 is necessary. The Commission shall enter its order
HB1700 Enrolled - 61 - LRB104 08228 SPS 18278 b
1 confirming or modifying the supplemental procurement plan
2 within 90 days after the filing of the supplemental
3 procurement plan by the Agency.
4 (3) The Commission shall approve the supplemental
5 procurement plan of renewable energy credits to be
6 procured from new or existing photovoltaics, including,
7 but not limited to, distributed photovoltaic generation,
8 if the Commission determines that it will ensure adequate,
9 reliable, affordable, efficient, and environmentally
10 sustainable electric service in the form of renewable
11 energy credits at the lowest total cost over time, taking
12 into account any benefits of price stability.
13 (4) The supplemental procurement process under this
14 subsection (i) shall include each of the following
15 components:
16 (A) Procurement administrator. The Agency may
17 retain a procurement administrator in the manner set
18 forth in item (2) of subsection (a) of Section 1-75 of
19 this Act to conduct the supplemental procurement or
20 may elect to use the same procurement administrator
21 administering the Agency's annual procurement under
22 Section 1-75.
23 (B) Procurement monitor. The procurement monitor
24 retained by the Commission pursuant to Section
25 16-111.5 of the Public Utilities Act shall:
26 (i) monitor interactions among the procurement
HB1700 Enrolled - 62 - LRB104 08228 SPS 18278 b
1 administrator and bidders and suppliers;
2 (ii) monitor and report to the Commission on
3 the progress of the supplemental procurement
4 process;
5 (iii) provide an independent confidential
6 report to the Commission regarding the results of
7 the procurement events;
8 (iv) assess compliance with the procurement
9 plan approved by the Commission for the
10 supplemental procurement process;
11 (v) preserve the confidentiality of supplier
12 and bidding information in a manner consistent
13 with all applicable laws, rules, regulations, and
14 tariffs;
15 (vi) provide expert advice to the Commission
16 and consult with the procurement administrator
17 regarding issues related to procurement process
18 design, rules, protocols, and policy-related
19 matters;
20 (vii) consult with the procurement
21 administrator regarding the development and use of
22 benchmark criteria, standard form contracts,
23 credit policies, and bid documents; and
24 (viii) perform, with respect to the
25 supplemental procurement process, any other
26 procurement monitor duties specifically delineated
HB1700 Enrolled - 63 - LRB104 08228 SPS 18278 b
1 within subsection (i) of this Section.
2 (C) Solicitation, prequalification, and
3 registration of bidders. The procurement administrator
4 shall disseminate information to potential bidders to
5 promote a procurement event, notify potential bidders
6 that the procurement administrator may enter into a
7 post-bid price negotiation with bidders that meet the
8 applicable benchmarks, provide supply requirements,
9 and otherwise explain the competitive procurement
10 process. In addition to such other publication as the
11 procurement administrator determines is appropriate,
12 this information shall be posted on the Agency's and
13 the Commission's websites. The procurement
14 administrator shall also administer the
15 prequalification process, including evaluation of
16 credit worthiness, compliance with procurement rules,
17 and agreement to the standard form contract developed
18 pursuant to item (D) of this paragraph (4). The
19 procurement administrator shall then identify and
20 register bidders to participate in the procurement
21 event.
22 (D) Standard contract forms and credit terms and
23 instruments. The procurement administrator, in
24 consultation with the Agency, the Commission, and
25 other interested parties and subject to Commission
26 oversight, shall develop and provide standard contract
HB1700 Enrolled - 64 - LRB104 08228 SPS 18278 b
1 forms for the supplier contracts that meet generally
2 accepted industry practices as well as include any
3 applicable State of Illinois terms and conditions that
4 are required for contracts entered into by an agency
5 of the State of Illinois. Standard credit terms and
6 instruments that meet generally accepted industry
7 practices shall be similarly developed. Contracts for
8 new photovoltaics shall include a provision attesting
9 that the supplier will use a qualified person for the
10 installation of the device pursuant to paragraph (1)
11 of subsection (i) of this Section. The procurement
12 administrator shall make available to the Commission
13 all written comments it receives on the contract
14 forms, credit terms, or instruments. If the
15 procurement administrator cannot reach agreement with
16 the parties as to the contract terms and conditions,
17 the procurement administrator must notify the
18 Commission of any disputed terms and the Commission
19 shall resolve the dispute. The terms of the contracts
20 shall not be subject to negotiation by winning
21 bidders, and the bidders must agree to the terms of the
22 contract in advance so that winning bids are selected
23 solely on the basis of price.
24 (E) Requests for proposals; competitive
25 procurement process. The procurement administrator
26 shall design and issue requests for proposals to
HB1700 Enrolled - 65 - LRB104 08228 SPS 18278 b
1 supply renewable energy credits in accordance with the
2 supplemental procurement plan, as approved by the
3 Commission. The requests for proposals shall set forth
4 a procedure for sealed, binding commitment bidding
5 with pay-as-bid settlement, and provision for
6 selection of bids on the basis of price, provided,
7 however, that no bid shall be accepted if it exceeds
8 the benchmark developed pursuant to item (F) of this
9 paragraph (4).
10 (F) Benchmarks. Benchmarks for each product to be
11 procured shall be developed by the procurement
12 administrator in consultation with Commission staff,
13 the Agency, and the procurement monitor for use in
14 this supplemental procurement.
15 (G) A plan for implementing contingencies in the
16 event of supplier default, Commission rejection of
17 results, or any other cause.
18 (5) Within 2 business days after opening the sealed
19 bids, the procurement administrator shall submit a
20 confidential report to the Commission. The report shall
21 contain the results of the bidding for each of the
22 products along with the procurement administrator's
23 recommendation for the acceptance and rejection of bids
24 based on the price benchmark criteria and other factors
25 observed in the process. The procurement monitor also
26 shall submit a confidential report to the Commission
HB1700 Enrolled - 66 - LRB104 08228 SPS 18278 b
1 within 2 business days after opening the sealed bids. The
2 report shall contain the procurement monitor's assessment
3 of bidder behavior in the process as well as an assessment
4 of the procurement administrator's compliance with the
5 procurement process and rules. The Commission shall review
6 the confidential reports submitted by the procurement
7 administrator and procurement monitor and shall accept or
8 reject the recommendations of the procurement
9 administrator within 2 business days after receipt of the
10 reports.
11 (6) Within 3 business days after the Commission
12 decision approving the results of a procurement event, the
13 Agency shall enter into binding contractual arrangements
14 with the winning suppliers using the standard form
15 contracts.
16 (7) The names of the successful bidders and the
17 average of the winning bid prices for each contract type
18 and for each contract term shall be made available to the
19 public within 2 days after the supplemental procurement
20 event. The Commission, the procurement monitor, the
21 procurement administrator, the Agency, and all
22 participants in the procurement process shall maintain the
23 confidentiality of all other supplier and bidding
24 information in a manner consistent with all applicable
25 laws, rules, regulations, and tariffs. Confidential
26 information, including the confidential reports submitted
HB1700 Enrolled - 67 - LRB104 08228 SPS 18278 b
1 by the procurement administrator and procurement monitor
2 pursuant to this Section, shall not be made publicly
3 available and shall not be discoverable by any party in
4 any proceeding, absent a compelling demonstration of need,
5 nor shall those reports be admissible in any proceeding
6 other than one for law enforcement purposes.
7 (8) The supplemental procurement provided in this
8 subsection (i) shall not be subject to the requirements
9 and limitations of subsections (c) and (d) of this
10 Section.
11 (9) Expenses incurred in connection with the
12 procurement process held pursuant to this Section,
13 including, but not limited to, the cost of developing the
14 supplemental procurement plan, the procurement
15 administrator, procurement monitor, and the cost of the
16 retirement of renewable energy credits purchased pursuant
17 to the supplemental procurement shall be paid for from the
18 Illinois Power Agency Renewable Energy Resources Fund. The
19 Agency shall enter into an interagency agreement with the
20 Commission to reimburse the Commission for its costs
21 associated with the procurement monitor for the
22 supplemental procurement process.
23 (Source: P.A. 102-662, eff. 9-15-21; 103-188, eff. 6-30-23;
24 103-605, eff. 7-1-24; 103-1066, eff. 2-20-25.)
25 (Text of Section after amendment by P.A. 104-458)
HB1700 Enrolled - 68 - LRB104 08228 SPS 18278 b
1 Sec. 1-56. Illinois Power Agency Renewable Energy
2 Resources Fund; Illinois Solar for All Program.
3 (a) The Illinois Power Agency Renewable Energy Resources
4 Fund is created as a special fund in the State treasury.
5 (b) The Illinois Power Agency Renewable Energy Resources
6 Fund shall be administered by the Agency as described in this
7 subsection (b), provided that the changes to this subsection
8 (b) made by Public Act 99-906 shall not interfere with
9 existing contracts under this Section.
10 (1) The Illinois Power Agency Renewable Energy
11 Resources Fund shall be used to purchase renewable energy
12 credits according to any approved procurement plan
13 developed by the Agency prior to June 1, 2017.
14 (2) The Illinois Power Agency Renewable Energy
15 Resources Fund shall also be used to create the Illinois
16 Solar for All Program, which provides incentives for
17 low-income distributed generation and community solar
18 projects, and other associated approved expenditures. The
19 objectives of the Illinois Solar for All Program are to
20 bring photovoltaics to low-income communities in this
21 State in a manner that maximizes the development of new
22 photovoltaic generating facilities, to create a long-term,
23 low-income solar marketplace throughout this State, to
24 integrate, through interaction with stakeholders, with
25 existing energy efficiency initiatives, and to minimize
26 administrative costs. The Illinois Solar for All Program
HB1700 Enrolled - 69 - LRB104 08228 SPS 18278 b
1 shall be implemented in a manner that seeks to minimize
2 administrative costs, and maximize efficiencies and
3 synergies available through coordination with similar
4 initiatives, including the Adjustable Block program
5 described in subparagraphs (K) through (M) of paragraph
6 (1) of subsection (c) of Section 1-75, energy efficiency
7 programs, job training programs, community action
8 agencies, and agencies that administer the Low-Income Home
9 Energy Assistance Program. The Agency shall strive to
10 ensure that renewable energy credits procured through the
11 Illinois Solar for All Program and each of its subprograms
12 are purchased from projects across the breadth of
13 low-income and environmental justice communities in
14 Illinois, including both urban and rural communities, are
15 not concentrated in a few communities, and do not exclude
16 particular low-income or environmental justice
17 communities. The Agency shall include a description of its
18 proposed approach to the design, administration,
19 implementation and evaluation of the Illinois Solar for
20 All Program, as part of the long-term renewable resources
21 procurement plan authorized by subsection (c) of Section
22 1-75 of this Act, and the program shall be designed to grow
23 the low-income solar market. The Agency or utility, as
24 applicable, shall purchase renewable energy credits from
25 the (i) photovoltaic distributed renewable energy
26 generation projects and (ii) community solar projects that
HB1700 Enrolled - 70 - LRB104 08228 SPS 18278 b
1 are procured under procurement processes authorized by the
2 long-term renewable resources procurement plans approved
3 by the Commission.
4 The Illinois Solar for All Program shall include the
5 program offerings described in subparagraphs (A) through
6 (E) of this paragraph (2), which the Agency shall
7 implement through contracts with third-party providers
8 and, subject to appropriation, pay the approximate amounts
9 identified using monies available in the Illinois Power
10 Agency Renewable Energy Resources Fund. Each contract that
11 provides for the installation of solar facilities shall
12 provide that the solar facilities will produce energy and
13 economic benefits, at a level determined by the Agency to
14 be reasonable, for the participating low-income customers.
15 The monies available in the Illinois Power Agency
16 Renewable Energy Resources Fund and not otherwise
17 committed to contracts executed under subsection (i) of
18 this Section, as well as, in the case of the programs
19 described under subparagraphs (A) through (E) of this
20 paragraph (2), funding authorized pursuant to subparagraph
21 (O) of paragraph (1) of subsection (c) of Section 1-75 of
22 this Act, shall initially be allocated among the programs
23 described in this paragraph (2), as follows: 35% of these
24 funds shall be allocated to programs described in
25 subparagraphs (A) and (E) of this paragraph (2), 40% of
26 these funds shall be allocated to programs described in
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1 subparagraph (B) of this paragraph (2), and 25% of these
2 funds shall be allocated to programs described in
3 subparagraph (C) of this paragraph (2). The allocation of
4 funds among subparagraphs (A), (B), (C), and (E) of this
5 paragraph (2) may be changed if the Agency, after
6 receiving input through a stakeholder process, determines
7 incentives in subparagraph (A), (B), (C), or (E) of this
8 paragraph (2) have not been adequately subscribed to fully
9 utilize available Illinois Solar for All Program funds.
10 Contracts that will be paid with funds in the Illinois
11 Power Agency Renewable Energy Resources Fund shall be
12 executed by the Agency. Contracts that will be paid with
13 funds collected by an electric utility shall be executed
14 by the electric utility.
15 Contracts under the Illinois Solar for All Program
16 shall include an approach, as set forth in the long-term
17 renewable resources procurement plans, to ensure the
18 wholesale market value of the energy is credited to
19 participating low-income customers or organizations and to
20 ensure tangible economic benefits flow directly to program
21 participants, except in the case of low-income
22 multi-family housing where the low-income customer does
23 not directly pay for energy. Priority shall be given to
24 projects that demonstrate meaningful involvement of
25 low-income community members in designing the initial
26 proposals. Acceptable proposals to implement projects must
HB1700 Enrolled - 72 - LRB104 08228 SPS 18278 b
1 demonstrate the applicant's ability to conduct initial
2 community outreach, education, and recruitment of
3 low-income participants in the community. Projects
4 submitted by approved vendors must either comply with the
5 minimum equity standard set forth in subsection (c-10) of
6 Section 1-75 of this Act or include job training
7 opportunities if available, with the specific level of
8 trainee usage to be determined through the Agency's
9 long-term renewable resources procurement plan, and the
10 Illinois Solar for All Program Administrator shall
11 coordinate with the job training programs described in
12 paragraph (1) of subsection (a) of Section 16-108.12 of
13 the Public Utilities Act and in the Energy Transition Act.
14 The Agency shall make every effort to ensure that
15 small and emerging businesses, particularly those located
16 in low-income and environmental justice communities, are
17 able to participate in the Illinois Solar for All Program.
18 These efforts may include, but shall not be limited to,
19 proactive support from the program administrator,
20 different or preferred access to subprograms and
21 administrator-identified customers or grassroots
22 education provider-identified customers, and different
23 incentive levels. The Agency shall report on progress and
24 barriers to participation of small and emerging businesses
25 in the Illinois Solar for All Program at least once a year.
26 The report shall be made available on the Agency's website
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1 and, in years when the Agency is updating its long-term
2 renewable resources procurement plan, included in that
3 Plan.
4 (A) Low-income single-family and small multifamily
5 solar incentive. This program will provide incentives
6 to low-income customers, either directly or through
7 solar providers, to increase the participation of
8 low-income households in photovoltaic on-site
9 distributed generation at residential buildings
10 containing one to 4 units. Companies participating in
11 this program that install solar panels shall commit to
12 meeting a minimum equity standard or hiring job
13 trainees for a portion of their low-income
14 installations, and an administrator shall facilitate
15 partnering the companies that install solar panels
16 with entities that provide solar panel installation
17 job training. It is a goal of this program that a
18 minimum of 25% of the incentives for this program be
19 allocated to projects located within environmental
20 justice communities. Contracts entered into under this
21 paragraph may be entered into with an entity that will
22 develop and administer the program and shall also
23 include contracts for renewable energy credits from
24 the photovoltaic distributed generation that is the
25 subject of the program, as set forth in the long-term
26 renewable resources procurement plan. Additionally:
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1 (i) The Agency shall reserve a portion of this
2 program for projects that promote energy
3 sovereignty through ownership of projects by
4 low-income households, not-for-profit
5 organizations providing services to low-income
6 households, affordable housing owners, community
7 cooperatives, or community-based limited liability
8 companies providing services to low-income
9 households. Projects that feature energy ownership
10 should ensure that local people have control of
11 the project and reap benefits from the project
12 over and above energy bill savings. The Agency may
13 consider the inclusion of projects that promote
14 ownership over time or that involve partial
15 project ownership by communities, as promoting
16 energy sovereignty. Incentives for projects that
17 promote energy sovereignty may be higher than
18 incentives for equivalent projects that do not
19 promote energy sovereignty under this same
20 program.
21 (ii) Through its long-term renewable resources
22 procurement plan, the Agency shall consider
23 additional program and contract requirements to
24 ensure faithful compliance by applicants
25 benefiting from preferences for projects
26 designated to promote energy sovereignty. The
HB1700 Enrolled - 75 - LRB104 08228 SPS 18278 b
1 Agency shall make every effort to enable solar
2 providers already participating in the Adjustable
3 Block program under subparagraph (K) of paragraph
4 (1) of subsection (c) of Section 1-75 of this Act,
5 and particularly solar providers developing
6 projects under item (i) of subparagraph (K) of
7 paragraph (1) of subsection (c) of Section 1-75 of
8 this Act to easily participate in the Low-Income
9 Distributed Generation Incentive program described
10 under this subparagraph (A), and vice versa. This
11 effort may include, but shall not be limited to,
12 utilizing similar or the same application systems
13 and processes, utilizing similar or the same forms
14 and formats of communication, and providing active
15 outreach to companies participating in one program
16 but not the other. The Agency shall report on
17 efforts made to encourage this cross-participation
18 in its long-term renewable resources procurement
19 plan.
20 (iii) To maximize equitable participation in
21 this program and overcome challenges facing the
22 development of residential solar projects, the
23 Agency may propose a payment structure for
24 contracts executed pursuant to this subparagraph
25 (A) under which applicant firms are advanced
26 capital that is disbursed after contract execution
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1 but before the contracted project's energization,
2 upon a demonstration of qualification or need
3 under criteria established by the Agency that are
4 focused on supporting the small and emerging
5 businesses and the businesses that most acutely
6 face barriers to capital access, which severely
7 limits the businesses' participation in the
8 program described in this subparagraph (A). The
9 amount or percentage of capital advanced before
10 project energization shall be designed to overcome
11 the barriers in access to capital that are faced
12 by an applicant. The amount or percentage of
13 advanced capital may vary under this subparagraph
14 (A) by an applicant's demonstration of need, with
15 such levels to be established through the
16 Long-Term Renewable Resources Procurement Plan and
17 any application requirements or evaluation
18 criteria developed under that Plan.
19 (B) Low-Income Community Solar Project Initiative.
20 Incentives shall be offered to low-income customers,
21 either directly or through developers, to increase the
22 participation of low-income subscribers of community
23 solar projects. The developer of each project shall
24 identify its partnership with community stakeholders
25 regarding the location, development, and participation
26 in the project, provided that nothing shall preclude a
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1 project from including an anchor tenant that does not
2 qualify as low-income. Companies participating in this
3 program that develop or install solar projects shall
4 commit to meeting a minimum equity standard or to
5 hiring job trainees for a portion of their low-income
6 installations, and an administrator shall facilitate
7 partnering the companies that install solar projects
8 with entities that provide solar installation and
9 related job training. It is a goal of this program that
10 a minimum of 25% of the incentives for this program be
11 allocated to community photovoltaic projects in
12 environmental justice communities. The Agency shall
13 reserve a portion of this program for projects that
14 promote energy sovereignty through ownership of
15 projects by low-income households, not-for-profit
16 organizations providing services to low-income
17 households, affordable housing owners, or
18 community-based limited liability companies providing
19 services to low-income households. Projects that
20 feature energy ownership should ensure that local
21 people have control of the project and reap benefits
22 from the project over and above energy bill savings.
23 The Agency may consider the inclusion of projects that
24 promote ownership over time or that involve partial
25 project ownership by communities, as promoting energy
26 sovereignty. Incentives for projects that promote
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1 energy sovereignty may be higher than incentives for
2 equivalent projects that do not promote energy
3 sovereignty under this same program. Contracts entered
4 into under this paragraph may be entered into with
5 developers and shall also include contracts for
6 renewable energy credits related to the program.
7 (C) Incentives for non-profits and public
8 facilities. Under this program funds shall be used to
9 support on-site photovoltaic distributed renewable
10 energy generation devices to serve the load associated
11 with not-for-profit customers and to support
12 photovoltaic distributed renewable energy generation
13 that uses photovoltaic technology to serve the load
14 associated with public sector customers taking service
15 at public buildings. Master-metered multifamily
16 buildings that primarily house income-eligible
17 residents may qualify under this subparagraph (C).
18 Nonprofits and public facilities that can demonstrate
19 that the nonprofit or public facility serves
20 income-qualified or environmental justice communities
21 may potentially qualify for the program, regardless of
22 physical location. Qualification may be determined
23 using the same procedures applied to critical service
24 provider requests for the purpose of establishing
25 project eligibility in areas that are not designated
26 as income-eligible or environmental justice
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1 communities. Companies participating in this program
2 that develop or install solar projects shall commit to
3 meeting a minimum equity standard or to hiring job
4 trainees for a portion of their low-income
5 installations, and an administrator shall facilitate
6 partnering the companies that install solar projects
7 with entities that provide solar installation and
8 related job training. Through its long-term renewable
9 resources procurement plan, the Agency shall consider
10 additional program and contract requirements to ensure
11 faithful compliance by applicants benefiting from
12 preferences for projects designated to promote energy
13 sovereignty. It is a goal of this program that at least
14 25% of the incentives for this program be allocated to
15 projects located in environmental justice communities.
16 Contracts entered into under this paragraph may be
17 entered into with an entity that will develop and
18 administer the program or with developers and shall
19 also include contracts for renewable energy credits
20 related to the program.
21 (D) (Blank).
22 (E) Low-income large multifamily solar incentive.
23 This program shall provide incentives to low-income
24 customers, either directly or through solar providers,
25 to increase the participation of low-income households
26 in photovoltaic on-site distributed generation at
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1 residential buildings with 5 or more units. Companies
2 participating in this program that develop or install
3 solar projects shall commit to meeting a minimum
4 equity standard or to hiring job trainees for a
5 portion of their low-income installations, and an
6 administrator shall facilitate partnering the
7 companies that install solar projects with entities
8 that provide solar installation and related job
9 training. It is a goal of this program that a minimum
10 of 25% of the incentives for this program be allocated
11 to projects located within environmental justice
12 communities. The Agency shall reserve a portion of
13 this program for projects that promote energy
14 sovereignty through ownership of projects by
15 low-income households, not-for-profit organizations
16 providing services to low-income households,
17 affordable housing owners, or community-based limited
18 liability companies providing services to low-income
19 households. Projects that feature energy ownership
20 should ensure that local people have control of the
21 project and reap benefits from the project over and
22 above energy bill savings. The Agency may consider the
23 inclusion of projects that promote ownership over time
24 or that involve partial project ownership by
25 communities, as promoting energy sovereignty.
26 Incentives for projects that promote energy
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1 sovereignty may be higher than incentives for
2 equivalent projects that do not promote energy
3 sovereignty under this same program.
4 The requirement that a qualified person, as defined in
5 paragraph (1) of subsection (i) of this Section, install
6 photovoltaic devices does not apply to the Illinois Solar
7 for All Program described in this subsection (b).
8 In addition to the programs outlined in paragraphs (A)
9 through (E), the Agency and other parties may propose
10 additional programs through the long-term renewable
11 resources procurement plan developed and approved under
12 paragraph (5) of subsection (b) of Section 16-111.5 of the
13 Public Utilities Act. Additional programs may target
14 market segments not specified above and may also include
15 incentives targeted to increase the uptake of
16 nonphotovoltaic technologies by low-income customers,
17 including energy storage paired with photovoltaics, if the
18 Commission determines that the Illinois Solar for All
19 Program would provide greater benefits to the public
20 health and well-being of low-income residents through also
21 supporting that additional program versus supporting
22 programs already authorized.
23 (3) Costs associated with the Illinois Solar for All
24 Program and its components described in paragraph (2) of
25 this subsection (b), including, but not limited to, costs
26 associated with procuring experts, consultants, and the
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1 program administrator referenced in this subsection (b)
2 and related incremental costs, costs related to income
3 verification and facilitating customer participation in
4 the program through referrals and other methods, costs
5 related to obtaining feedback on the program from parties
6 that do not have a financial interest, and costs related
7 to the evaluation of the Illinois Solar for All Program,
8 may be paid for using monies in the Illinois Power Agency
9 Renewable Energy Resources Fund, and funds allocated
10 pursuant to subparagraph (O) of paragraph (1) of
11 subsection (c) of Section 1-75, and, through the program
12 year concluding May 31, 2028, collections associated with
13 the purchase of renewable energy resources collected
14 pursuant to subsection (k) of Section 16-108 of the Public
15 Utilities Act up to an amount that shall not exceed
16 $10,000,000 for the program year commencing June 1, 2026
17 and that shall not exceed $5,000,000 for the program year
18 commencing June 1, 2027, but the Agency or program
19 administrator shall strive to minimize costs in the
20 implementation of the program. The Agency or contracting
21 electric utility shall purchase renewable energy credits
22 from generation that is the subject of a contract under
23 subparagraphs (A) through (E) of paragraph (2) of this
24 subsection (b), and may pay for such renewable energy
25 credits through an upfront payment per installed kilowatt
26 of nameplate capacity paid once the device is
HB1700 Enrolled - 83 - LRB104 08228 SPS 18278 b
1 interconnected at the distribution system level of the
2 interconnecting utility and verified as energized. Unless
3 otherwise provided in the Agency's long-term renewable
4 resources procurement plan, payments for renewable energy
5 credits shall be in exchange for all renewable energy
6 credits generated by the system during the first 15 years
7 of operation and shall be structured to overcome barriers
8 to participation in the solar market by the low-income
9 community. The incentives provided for in this Section may
10 be implemented through the pricing of renewable energy
11 credits where the prices paid for the credits are higher
12 than the prices from programs offered under subsection (c)
13 of Section 1-75 of this Act to account for the additional
14 capital necessary to successfully access targeted market
15 segments. The Agency or contracting electric utility shall
16 retire any renewable energy credits purchased under this
17 program and the credits shall count toward the obligation
18 under subsection (c) of Section 1-75 of this Act for the
19 electric utility to which the project is interconnected,
20 if applicable.
21 The Agency shall direct that up to 5% of the funds
22 available under the Illinois Solar for All Program to
23 community-based groups and other qualifying organizations
24 to assist in community-driven education efforts related to
25 the Illinois Solar for All Program, including general
26 energy education, job training program outreach efforts,
HB1700 Enrolled - 84 - LRB104 08228 SPS 18278 b
1 and other activities deemed to be qualified by the Agency.
2 Grassroots education funding shall not be used to support
3 the marketing by solar project development firms and
4 organizations, unless such education provides equal
5 opportunities for all applicable firms and organizations.
6 The Agency may direct up to 25% of the funds currently
7 allocated to subparagraphs (A), (C), and (E) of paragraph
8 (2) toward the Illinois Storage for All Program, which
9 provides incentives through grants, rebates, or other
10 incentives to encourage development of energy storage
11 colocated with photovoltaic distributed renewable energy
12 generation devices developed through the Illinois Solar
13 for All Program. Any unused Storage for All funds during a
14 program year may be reallocated to other Solar for All
15 Program projects that are waitlisted or otherwise not
16 selected due to funding limitation per the Agency's
17 defined process. The Illinois Storage for All Program
18 shall be available to current and future participants of
19 the low-income single-family and multifamily subprogram
20 described in subparagraphs (A) and (E) of paragraph (2),
21 and the subprogram for nonprofit and public facilities
22 described in subparagraph (C) of paragraph (2). If
23 developed, the Illinois Storage for All Program may be
24 designed to support community energy resilience, disaster
25 preparedness, and energy bill reductions, particularly for
26 residents of low-income and environmental justice
HB1700 Enrolled - 85 - LRB104 08228 SPS 18278 b
1 communities. The Agency may propose the funding amount,
2 structure, and details of the Illinois Storage for All
3 Program in the Agency's long-term renewable resources
4 procurement plan described in subsection (c) of Section
5 1-75 of this Act and Section 16-111.5 of the Public
6 Utilities Act, or through its energy storage resources
7 procurement plan described in subsection (d-20) of Section
8 1-75 of this Act. As part of the development of its initial
9 energy storage resources procurement plan, the Agency
10 shall engage stakeholders in the development of the
11 Illinois Storage for All Program, including, but not
12 limited to, members of the Illinois Commission on
13 Environmental Justice described in Section 10 of the
14 Environmental Justice Act, representatives of approved
15 vendors participating in the Illinois Solar for All
16 Program, representatives of community-based
17 organizations, and members of the Illinois Solar for All
18 Stakeholder Advisory Group. The stakeholder process shall
19 include, but not be limited to, an exploration of how to
20 ensure that the distributed storage will be accessible to
21 income-qualified households with zero upfront costs and in
22 coordination with job training programs, as well as how
23 the program may be supported by other programs or
24 initiatives to maximize storage benefits and limit
25 double-counting of incentives.
26 (4) The Agency shall, consistent with the requirements
HB1700 Enrolled - 86 - LRB104 08228 SPS 18278 b
1 of this subsection (b), propose the Illinois Solar for All
2 Program terms, conditions, and requirements, including the
3 prices to be paid for renewable energy credits, and which
4 prices may be determined through a formula, through the
5 development, review, and approval of the Agency's
6 long-term renewable resources procurement plan described
7 in subsection (c) of Section 1-75 of this Act and Section
8 16-111.5 of the Public Utilities Act. In the course of the
9 Commission proceeding initiated to review and approve the
10 plan, including the Illinois Solar for All Program
11 proposed by the Agency, a party may propose an additional
12 low-income solar or solar incentive program, or
13 modifications to the programs proposed by the Agency, and
14 the Commission may approve an additional program, or
15 modifications to the Agency's proposed program, if the
16 additional or modified program more effectively maximizes
17 the benefits to low-income customers after taking into
18 account all relevant factors, including, but not limited
19 to, the extent to which a competitive market for
20 low-income solar has developed. Following the Commission's
21 approval of the Illinois Solar for All Program, the Agency
22 or a party may propose adjustments to the program terms,
23 conditions, and requirements, including the price offered
24 to new systems, to ensure the long-term viability and
25 success of the program. The Commission shall review and
26 approve any modifications to the program through the plan
HB1700 Enrolled - 87 - LRB104 08228 SPS 18278 b
1 revision process described in Section 16-111.5 of the
2 Public Utilities Act.
3 (5) The Agency shall issue a request for
4 qualifications for a third-party program administrator or
5 administrators to administer all or a portion of the
6 Illinois Solar for All Program. The third-party program
7 administrator shall be chosen through a competitive bid
8 process based on selection criteria and requirements
9 developed by the Agency, including, but not limited to,
10 experience in administering low-income energy programs and
11 overseeing statewide clean energy or energy efficiency
12 services. If the Agency retains a program administrator or
13 administrators to implement all or a portion of the
14 Illinois Solar for All Program, each administrator shall
15 periodically submit reports to the Agency and Commission
16 for each program that it administers, at appropriate
17 intervals to be identified by the Agency in its long-term
18 renewable resources procurement plan, subject to
19 Commission approval, provided that the reporting interval
20 is at least an annual period. The third-party program
21 administrator may be, but need not be, the same
22 administrator as for the Adjustable Block program
23 described in subparagraphs (K) through (M) of paragraph
24 (1) of subsection (c) of Section 1-75. The Agency, through
25 its long-term renewable resources procurement plan
26 approval process, shall also determine if individual
HB1700 Enrolled - 88 - LRB104 08228 SPS 18278 b
1 subprograms of the Illinois Solar for All Program are
2 better served by a different or separate Program
3 Administrator.
4 The third-party administrator's responsibilities
5 shall also include facilitating placement for graduates of
6 Illinois-based renewable energy-specific job training
7 programs, including the Clean Jobs Workforce Network
8 Program and the Illinois Climate Works Preapprenticeship
9 Program administered by the Department of Commerce and
10 Economic Opportunity and programs administered under
11 Section 16-108.12 of the Public Utilities Act. To increase
12 the uptake of trainees by participating firms, the
13 administrator shall also develop a web-based clearinghouse
14 for information available to both job training program
15 graduates and firms participating, directly or indirectly,
16 in Illinois solar incentive programs. The program
17 administrator shall also coordinate its activities with
18 entities implementing electric and natural gas
19 income-qualified energy efficiency programs, including
20 customer referrals to and from such programs, and connect
21 prospective low-income solar customers with any existing
22 deferred maintenance programs where applicable.
23 (6) The long-term renewable resources procurement plan
24 shall also provide for an independent evaluation of the
25 Illinois Solar for All Program. At least every 5 years,
26 the Agency shall select an independent evaluator to review
HB1700 Enrolled - 89 - LRB104 08228 SPS 18278 b
1 and report on the Illinois Solar for All Program and the
2 performance of the third-party program administrator of
3 the Illinois Solar for All Program. The evaluation shall
4 be based on objective criteria developed through a public
5 stakeholder process. The process shall include feedback
6 and participation from Illinois Solar for All Program
7 stakeholders, including participants and organizations in
8 environmental justice and historically underserved
9 communities. The report shall include a summary of the
10 evaluation of the Illinois Solar for All Program based on
11 the stakeholder developed objective criteria. The report
12 shall include the number of projects installed; the total
13 installed capacity in kilowatts; the average cost per
14 kilowatt of installed capacity to the extent reasonably
15 obtainable by the Agency; the number of jobs or job
16 opportunities created; economic, social, and environmental
17 benefits created; and the total administrative costs
18 expended by the Agency and program administrator to
19 implement and evaluate the program. The report shall be
20 prepared at least every 2 years and shall be delivered to
21 the Commission and posted on the Agency's website, and
22 shall be used, as needed, to revise the Illinois Solar for
23 All Program. The Commission shall also consider the
24 results of the evaluation as part of its review of the
25 long-term renewable resources procurement plan under
26 subsection (c) of Section 1-75 of this Act.
HB1700 Enrolled - 90 - LRB104 08228 SPS 18278 b
1 (7) If additional funding for the programs described
2 in this subsection (b) is available under subsection (k)
3 of Section 16-108 of the Public Utilities Act, then the
4 Agency shall submit a procurement plan to the Commission
5 no later than September 1, 2018, that proposes how the
6 Agency will procure programs on behalf of the applicable
7 utility. After notice and hearing, the Commission shall
8 approve, or approve with modification, the plan no later
9 than November 1, 2018.
10 (8) As part of the development and update of the
11 long-term renewable resources procurement plan authorized
12 by subsection (c) of Section 1-75 of this Act, the Agency
13 shall plan for: (A) actions to refer customers from the
14 Illinois Solar for All Program to electric and natural gas
15 income-qualified energy efficiency programs, and vice
16 versa, with the goal of increasing participation in both
17 of these programs; (B) effective procedures for data
18 sharing, as needed, to effectuate referrals between the
19 Illinois Solar for All Program and both electric and
20 natural gas income-qualified energy efficiency programs,
21 including sharing customer information directly with the
22 utilities, as needed and appropriate; and (C) efforts to
23 identify any existing deferred maintenance programs for
24 which prospective Solar for All Program customers may be
25 eligible and connect prospective customers for whom
26 deferred maintenance is or may be a barrier to solar
HB1700 Enrolled - 91 - LRB104 08228 SPS 18278 b
1 installation to those programs.
2 Income verification for participation in the Illinois
3 Solar for All subprograms described in subparagraphs (A) and
4 (C) of paragraph (2) may include pathways for verification
5 that rely on self-attestation by the applicant if the
6 applicant's residence is located within a low-income or
7 environmental justice community as defined in this subsection
8 (b). The Agency shall proactively explore approaches that make
9 the income verification process less burdensome for residents
10 of low-income or environmental justice communities, as defined
11 in this subsection (b).
12 As used in this subsection (b), "low-income households"
13 means persons and families whose income does not exceed 80% of
14 area median income, adjusted for family size and revised every
15 year.
16 For the purposes of this subsection (b), the Agency shall
17 define "environmental justice community" based on the
18 methodologies and findings established by the Agency and the
19 Administrator for the Illinois Solar for All Program in its
20 initial long-term renewable resources procurement plan and as
21 updated by the Agency and the Administrator for the Illinois
22 Solar for All Program as part of the long-term renewable
23 resources procurement plan update.
24 (b-5) After the receipt of all payments required by
25 Section 16-115D of the Public Utilities Act, no additional
26 funds shall be deposited into the Illinois Power Agency
HB1700 Enrolled - 92 - LRB104 08228 SPS 18278 b
1 Renewable Energy Resources Fund unless directed by order of
2 the Commission.
3 (b-10) After the receipt of all payments required by
4 Section 16-115D of the Public Utilities Act and payment in
5 full of all contracts executed by the Agency under subsections
6 (b) and (i) of this Section, if the balance of the Illinois
7 Power Agency Renewable Energy Resources Fund is under $5,000,
8 then the Fund shall be inoperative and any remaining funds and
9 any funds submitted to the Fund after that date, shall be
10 transferred to the Supplemental Low-Income Energy Assistance
11 Fund for use in the Low-Income Home Energy Assistance Program,
12 as authorized by the Energy Assistance Act.
13 (b-15) The prevailing wage requirements set forth in the
14 Prevailing Wage Act apply to each project that is undertaken
15 pursuant to one or more of the programs of incentives and
16 initiatives described in subsection (b) of this Section and
17 for which a project application is submitted to the program
18 after June 30, 2023 (the effective date of Public Act
19 103-188), except (i) projects that serve single-family or
20 multi-family residential buildings and (ii) projects with an
21 aggregate capacity of less than 100 kilowatts that serve
22 houses of worship. The Agency shall require verification that
23 all construction performed on a project by the renewable
24 energy credit delivery contract holder, its contractors, or
25 its subcontractors relating to the construction of the
26 facility is performed by workers receiving an amount for that
HB1700 Enrolled - 93 - LRB104 08228 SPS 18278 b
1 work that is greater than or equal to the general prevailing
2 rate of wages as that term is defined in the Prevailing Wage
3 Act, and the Agency may adjust renewable energy credit prices
4 to account for increased labor costs.
5 In this subsection (b-15), "house of worship" has the
6 meaning given in subparagraph (Q) of paragraph (1) of
7 subsection (c) of Section 1-75.
8 (c) (Blank).
9 (d) (Blank).
10 (e) All renewable energy credits procured using monies
11 from the Illinois Power Agency Renewable Energy Resources Fund
12 shall be permanently retired.
13 (f) The selection of one or more third-party program
14 managers or administrators, the selection of the independent
15 evaluator, and the procurement processes described in this
16 Section are exempt from the requirements of the Illinois
17 Procurement Code, under Section 20-10 of that Code.
18 (g) All disbursements from the Illinois Power Agency
19 Renewable Energy Resources Fund shall be made only upon
20 warrants of the Comptroller drawn upon the Treasurer as
21 custodian of the Fund upon vouchers signed by the Director or
22 by the person or persons designated by the Director for that
23 purpose. The Comptroller is authorized to draw the warrant
24 upon vouchers so signed. The Treasurer shall accept all
25 warrants so signed and shall be released from liability for
26 all payments made on those warrants.
HB1700 Enrolled - 94 - LRB104 08228 SPS 18278 b
1 (h) The Illinois Power Agency Renewable Energy Resources
2 Fund shall not be subject to sweeps, administrative charges,
3 or chargebacks, including, but not limited to, those
4 authorized under Section 8h of the State Finance Act, that
5 would in any way result in the transfer of any funds from this
6 Fund to any other fund of this State or in having any such
7 funds utilized for any purpose other than the express purposes
8 set forth in this Section.
9 (h-5) The Agency may assess fees to each bidder to recover
10 the costs incurred in connection with a procurement process
11 held under this Section. Fees collected from bidders shall be
12 deposited into the Illinois Power Agency Renewable Energy
13 Resources Fund.
14 (i) Supplemental procurement process.
15 (1) Within 90 days after June 30, 2014 (the effective
16 date of Public Act 98-672), the Agency shall develop a
17 one-time supplemental procurement plan limited to the
18 procurement of renewable energy credits, if available,
19 from new or existing photovoltaics, including, but not
20 limited to, distributed photovoltaic generation. Nothing
21 in this subsection (i) requires procurement of wind
22 generation through the supplemental procurement.
23 Renewable energy credits procured from new
24 photovoltaics, including, but not limited to, distributed
25 photovoltaic generation, under this subsection (i) must be
26 procured from devices installed by a qualified person. In
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1 its supplemental procurement plan, the Agency shall
2 establish contractually enforceable mechanisms for
3 ensuring that the installation of new photovoltaics is
4 performed by a qualified person.
5 For the purposes of this paragraph (1), "qualified
6 person" means a person who performs installations of
7 photovoltaics, including, but not limited to, distributed
8 photovoltaic generation, and who: (A) has completed an
9 apprenticeship as a journeyman electrician from a United
10 States Department of Labor registered electrical
11 apprenticeship and training program and received a
12 certification of satisfactory completion; or (B) does not
13 currently meet the criteria under clause (A) of this
14 paragraph (1), but is enrolled in a United States
15 Department of Labor registered electrical apprenticeship
16 program, provided that the person is directly supervised
17 by a person who meets the criteria under clause (A) of this
18 paragraph (1); or (C) has obtained one of the following
19 credentials in addition to attesting to satisfactory
20 completion of at least 5 years or 8,000 hours of
21 documented hands-on electrical experience: (i) a North
22 American Board of Certified Energy Practitioners (NABCEP)
23 Installer Certificate for Solar PV; (ii) an Underwriters
24 Laboratories (UL) PV Systems Installer Certificate; (iii)
25 an Electronics Technicians Association, International
26 (ETAI) Level 3 PV Installer Certificate; or (iv) an
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1 Associate in Applied Science degree from an Illinois
2 Community College Board approved community college program
3 in renewable energy or a distributed generation
4 technology.
5 For the purposes of this paragraph (1), "directly
6 supervised" means that there is a qualified person who
7 meets the qualifications under clause (A) of this
8 paragraph (1) and who is available for supervision and
9 consultation regarding the work performed by persons under
10 clause (B) of this paragraph (1), including a final
11 inspection of the installation work that has been directly
12 supervised to ensure safety and conformity with applicable
13 codes.
14 For the purposes of this paragraph (1), "install"
15 means the major activities and actions required to
16 connect, in accordance with applicable building and
17 electrical codes, the conductors, connectors, and all
18 associated fittings, devices, power outlets, or
19 apparatuses mounted at the premises that are directly
20 involved in delivering energy to the premises' electrical
21 wiring from the photovoltaics, including, but not limited
22 to, to distributed photovoltaic generation.
23 The renewable energy credits procured pursuant to the
24 supplemental procurement plan shall be procured using up
25 to $30,000,000 from the Illinois Power Agency Renewable
26 Energy Resources Fund. The Agency shall not plan to use
HB1700 Enrolled - 97 - LRB104 08228 SPS 18278 b
1 funds from the Illinois Power Agency Renewable Energy
2 Resources Fund in excess of the monies on deposit in such
3 fund or projected to be deposited into such fund. The
4 supplemental procurement plan shall ensure adequate,
5 reliable, affordable, efficient, and environmentally
6 sustainable renewable energy resources (including credits)
7 at the lowest total cost over time, taking into account
8 any benefits of price stability.
9 To the extent available, 50% of the renewable energy
10 credits procured from distributed renewable energy
11 generation shall come from devices of less than 25
12 kilowatts in nameplate capacity. Procurement of renewable
13 energy credits from distributed renewable energy
14 generation devices shall be done through multi-year
15 contracts of no less than 5 years. The Agency shall create
16 credit requirements for counterparties. In order to
17 minimize the administrative burden on contracting
18 entities, the Agency shall solicit the use of third
19 parties to aggregate distributed renewable energy. These
20 third parties shall enter into and administer contracts
21 with individual distributed renewable energy generation
22 device owners. An individual distributed renewable energy
23 generation device owner shall have the ability to measure
24 the output of his or her distributed renewable energy
25 generation device.
26 In developing the supplemental procurement plan, the
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1 Agency shall hold at least one workshop open to the public
2 within 90 days after June 30, 2014 (the effective date of
3 Public Act 98-672) and shall consider any comments made by
4 stakeholders or the public. Upon development of the
5 supplemental procurement plan within this 90-day period,
6 copies of the supplemental procurement plan shall be
7 posted and made publicly available on the Agency's and
8 Commission's websites. All interested parties shall have
9 14 days following the date of posting to provide comment
10 to the Agency on the supplemental procurement plan. All
11 comments submitted to the Agency shall be specific,
12 supported by data or other detailed analyses, and, if
13 objecting to all or a portion of the supplemental
14 procurement plan, accompanied by specific alternative
15 wording or proposals. All comments shall be posted on the
16 Agency's and Commission's websites. Within 14 days
17 following the end of the 14-day review period, the Agency
18 shall revise the supplemental procurement plan as
19 necessary based on the comments received and file its
20 revised supplemental procurement plan with the Commission
21 for approval.
22 (2) Within 5 days after the filing of the supplemental
23 procurement plan at the Commission, any person objecting
24 to the supplemental procurement plan shall file an
25 objection with the Commission. Within 10 days after the
26 filing, the Commission shall determine whether a hearing
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1 is necessary. The Commission shall enter its order
2 confirming or modifying the supplemental procurement plan
3 within 90 days after the filing of the supplemental
4 procurement plan by the Agency.
5 (3) The Commission shall approve the supplemental
6 procurement plan of renewable energy credits to be
7 procured from new or existing photovoltaics, including,
8 but not limited to, distributed photovoltaic generation,
9 if the Commission determines that it will ensure adequate,
10 reliable, affordable, efficient, and environmentally
11 sustainable electric service in the form of renewable
12 energy credits at the lowest total cost over time, taking
13 into account any benefits of price stability.
14 (4) The supplemental procurement process under this
15 subsection (i) shall include each of the following
16 components:
17 (A) Procurement administrator. The Agency may
18 retain a procurement administrator in the manner set
19 forth in item (2) of subsection (a) of Section 1-75 of
20 this Act to conduct the supplemental procurement or
21 may elect to use the same procurement administrator
22 administering the Agency's annual procurement under
23 Section 1-75.
24 (B) Procurement monitor. The procurement monitor
25 retained by the Commission pursuant to Section
26 16-111.5 of the Public Utilities Act shall:
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1 (i) monitor interactions among the procurement
2 administrator and bidders and suppliers;
3 (ii) monitor and report to the Commission on
4 the progress of the supplemental procurement
5 process;
6 (iii) provide an independent confidential
7 report to the Commission regarding the results of
8 the procurement events;
9 (iv) assess compliance with the procurement
10 plan approved by the Commission for the
11 supplemental procurement process;
12 (v) preserve the confidentiality of supplier
13 and bidding information in a manner consistent
14 with all applicable laws, rules, regulations, and
15 tariffs;
16 (vi) provide expert advice to the Commission
17 and consult with the procurement administrator
18 regarding issues related to procurement process
19 design, rules, protocols, and policy-related
20 matters;
21 (vii) consult with the procurement
22 administrator regarding the development and use of
23 benchmark criteria, standard form contracts,
24 credit policies, and bid documents; and
25 (viii) perform, with respect to the
26 supplemental procurement process, any other
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1 procurement monitor duties specifically delineated
2 within subsection (i) of this Section.
3 (C) Solicitation, prequalification, and
4 registration of bidders. The procurement administrator
5 shall disseminate information to potential bidders to
6 promote a procurement event, notify potential bidders
7 that the procurement administrator may enter into a
8 post-bid price negotiation with bidders that meet the
9 applicable benchmarks, provide supply requirements,
10 and otherwise explain the competitive procurement
11 process. In addition to such other publication as the
12 procurement administrator determines is appropriate,
13 this information shall be posted on the Agency's and
14 the Commission's websites. The procurement
15 administrator shall also administer the
16 prequalification process, including evaluation of
17 credit worthiness, compliance with procurement rules,
18 and agreement to the standard form contract developed
19 pursuant to item (D) of this paragraph (4). The
20 procurement administrator shall then identify and
21 register bidders to participate in the procurement
22 event.
23 (D) Standard contract forms and credit terms and
24 instruments. The procurement administrator, in
25 consultation with the Agency, the Commission, and
26 other interested parties and subject to Commission
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1 oversight, shall develop and provide standard contract
2 forms for the supplier contracts that meet generally
3 accepted industry practices as well as include any
4 applicable State of Illinois terms and conditions that
5 are required for contracts entered into by an agency
6 of the State of Illinois. Standard credit terms and
7 instruments that meet generally accepted industry
8 practices shall be similarly developed. Contracts for
9 new photovoltaics shall include a provision attesting
10 that the supplier will use a qualified person for the
11 installation of the device pursuant to paragraph (1)
12 of subsection (i) of this Section. The procurement
13 administrator shall make available to the Commission
14 all written comments it receives on the contract
15 forms, credit terms, or instruments. If the
16 procurement administrator cannot reach agreement with
17 the parties as to the contract terms and conditions,
18 the procurement administrator must notify the
19 Commission of any disputed terms and the Commission
20 shall resolve the dispute. The terms of the contracts
21 shall not be subject to negotiation by winning
22 bidders, and the bidders must agree to the terms of the
23 contract in advance so that winning bids are selected
24 solely on the basis of price.
25 (E) Requests for proposals; competitive
26 procurement process. The procurement administrator
HB1700 Enrolled - 103 - LRB104 08228 SPS 18278 b
1 shall design and issue requests for proposals to
2 supply renewable energy credits in accordance with the
3 supplemental procurement plan, as approved by the
4 Commission. The requests for proposals shall set forth
5 a procedure for sealed, binding commitment bidding
6 with pay-as-bid settlement, and provision for
7 selection of bids on the basis of price, provided,
8 however, that no bid shall be accepted if it exceeds
9 the benchmark developed pursuant to item (F) of this
10 paragraph (4).
11 (F) Benchmarks. Benchmarks for each product to be
12 procured shall be developed by the procurement
13 administrator in consultation with Commission staff,
14 the Agency, and the procurement monitor for use in
15 this supplemental procurement.
16 (G) A plan for implementing contingencies in the
17 event of supplier default, Commission rejection of
18 results, or any other cause.
19 (5) Within 2 business days after opening the sealed
20 bids, the procurement administrator shall submit a
21 confidential report to the Commission. The report shall
22 contain the results of the bidding for each of the
23 products along with the procurement administrator's
24 recommendation for the acceptance and rejection of bids
25 based on the price benchmark criteria and other factors
26 observed in the process. The procurement monitor also
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1 shall submit a confidential report to the Commission
2 within 2 business days after opening the sealed bids. The
3 report shall contain the procurement monitor's assessment
4 of bidder behavior in the process as well as an assessment
5 of the procurement administrator's compliance with the
6 procurement process and rules. The Commission shall review
7 the confidential reports submitted by the procurement
8 administrator and procurement monitor and shall accept or
9 reject the recommendations of the procurement
10 administrator within 2 business days after receipt of the
11 reports.
12 (6) Within 3 business days after the Commission
13 decision approving the results of a procurement event, the
14 Agency shall enter into binding contractual arrangements
15 with the winning suppliers using the standard form
16 contracts.
17 (7) The names of the successful bidders and the
18 average of the winning bid prices for each contract type
19 and for each contract term shall be made available to the
20 public within 2 days after the supplemental procurement
21 event. The Commission, the procurement monitor, the
22 procurement administrator, the Agency, and all
23 participants in the procurement process shall maintain the
24 confidentiality of all other supplier and bidding
25 information in a manner consistent with all applicable
26 laws, rules, regulations, and tariffs. Confidential
HB1700 Enrolled - 105 - LRB104 08228 SPS 18278 b
1 information, including the confidential reports submitted
2 by the procurement administrator and procurement monitor
3 pursuant to this Section, shall not be made publicly
4 available and shall not be discoverable by any party in
5 any proceeding, absent a compelling demonstration of need,
6 nor shall those reports be admissible in any proceeding
7 other than one for law enforcement purposes.
8 (8) The supplemental procurement provided in this
9 subsection (i) shall not be subject to the requirements
10 and limitations of subsections (c) and (d) of this
11 Section.
12 (9) Expenses incurred in connection with the
13 procurement process held pursuant to this Section,
14 including, but not limited to, the cost of developing the
15 supplemental procurement plan, the procurement
16 administrator, procurement monitor, and the cost of the
17 retirement of renewable energy credits purchased pursuant
18 to the supplemental procurement shall be paid for from the
19 Illinois Power Agency Renewable Energy Resources Fund. The
20 Agency shall enter into an interagency agreement with the
21 Commission to reimburse the Commission for its costs
22 associated with the procurement monitor for the
23 supplemental procurement process.
24 (Source: P.A. 103-188, eff. 6-30-23; 103-605, eff. 7-1-24;
25 103-1066, eff. 2-20-25; 104-458, eff. 6-1-26.)
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1 (20 ILCS 3855/1-75)
2 (Text of Section before amendment by P.A. 104-458)
3 Sec. 1-75. Planning and Procurement Bureau. The Planning
4 and Procurement Bureau has the following duties and
5 responsibilities:
6 (a) The Planning and Procurement Bureau shall each year,
7 beginning in 2008, develop procurement plans and conduct
8 competitive procurement processes in accordance with the
9 requirements of Section 16-111.5 of the Public Utilities Act
10 for the eligible retail customers of electric utilities that
11 on December 31, 2005 provided electric service to at least
12 100,000 customers in Illinois. Beginning with the delivery
13 year commencing on June 1, 2017, the Planning and Procurement
14 Bureau shall develop plans and processes for the procurement
15 of zero emission credits from zero emission facilities in
16 accordance with the requirements of subsection (d-5) of this
17 Section. Beginning on the effective date of this amendatory
18 Act of the 102nd General Assembly, the Planning and
19 Procurement Bureau shall develop plans and processes for the
20 procurement of carbon mitigation credits from carbon-free
21 energy resources in accordance with the requirements of
22 subsection (d-10) of this Section. The Planning and
23 Procurement Bureau shall also develop procurement plans and
24 conduct competitive procurement processes in accordance with
25 the requirements of Section 16-111.5 of the Public Utilities
26 Act for the eligible retail customers of small
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1 multi-jurisdictional electric utilities that (i) on December
2 31, 2005 served less than 100,000 customers in Illinois and
3 (ii) request a procurement plan for their Illinois
4 jurisdictional load. This Section shall not apply to a small
5 multi-jurisdictional utility until such time as a small
6 multi-jurisdictional utility requests the Agency to prepare a
7 procurement plan for their Illinois jurisdictional load. For
8 the purposes of this Section, the term "eligible retail
9 customers" has the same definition as found in Section
10 16-111.5(a) of the Public Utilities Act.
11 Beginning with the plan or plans to be implemented in the
12 2017 delivery year, the Agency shall no longer include the
13 procurement of renewable energy resources in the annual
14 procurement plans required by this subsection (a), except as
15 provided in subsection (q) of Section 16-111.5 of the Public
16 Utilities Act, and shall instead develop a long-term renewable
17 resources procurement plan in accordance with subsection (c)
18 of this Section and Section 16-111.5 of the Public Utilities
19 Act.
20 In accordance with subsection (c-5) of this Section, the
21 Planning and Procurement Bureau shall oversee the procurement
22 by electric utilities that served more than 300,000 retail
23 customers in this State as of January 1, 2019 of renewable
24 energy credits from new utility-scale solar projects to be
25 installed, along with energy storage facilities, at or
26 adjacent to the sites of electric generating facilities that,
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1 as of January 1, 2016, burned coal as their primary fuel
2 source.
3 (1) The Agency shall each year, beginning in 2008, as
4 needed, issue a request for qualifications for experts or
5 expert consulting firms to develop the procurement plans
6 in accordance with Section 16-111.5 of the Public
7 Utilities Act. In order to qualify an expert or expert
8 consulting firm must have:
9 (A) direct previous experience assembling
10 large-scale power supply plans or portfolios for
11 end-use customers;
12 (B) an advanced degree in economics, mathematics,
13 engineering, risk management, or a related area of
14 study;
15 (C) 10 years of experience in the electricity
16 sector, including managing supply risk;
17 (D) expertise in wholesale electricity market
18 rules, including those established by the Federal
19 Energy Regulatory Commission and regional transmission
20 organizations;
21 (E) expertise in credit protocols and familiarity
22 with contract protocols;
23 (F) adequate resources to perform and fulfill the
24 required functions and responsibilities; and
25 (G) the absence of a conflict of interest and
26 inappropriate bias for or against potential bidders or
HB1700 Enrolled - 109 - LRB104 08228 SPS 18278 b
1 the affected electric utilities.
2 (2) The Agency shall each year, as needed, issue a
3 request for qualifications for a procurement administrator
4 to conduct the competitive procurement processes in
5 accordance with Section 16-111.5 of the Public Utilities
6 Act. In order to qualify an expert or expert consulting
7 firm must have:
8 (A) direct previous experience administering a
9 large-scale competitive procurement process;
10 (B) an advanced degree in economics, mathematics,
11 engineering, or a related area of study;
12 (C) 10 years of experience in the electricity
13 sector, including risk management experience;
14 (D) expertise in wholesale electricity market
15 rules, including those established by the Federal
16 Energy Regulatory Commission and regional transmission
17 organizations;
18 (E) expertise in credit and contract protocols;
19 (F) adequate resources to perform and fulfill the
20 required functions and responsibilities; and
21 (G) the absence of a conflict of interest and
22 inappropriate bias for or against potential bidders or
23 the affected electric utilities.
24 (3) The Agency shall provide affected utilities and
25 other interested parties with the lists of qualified
26 experts or expert consulting firms identified through the
HB1700 Enrolled - 110 - LRB104 08228 SPS 18278 b
1 request for qualifications processes that are under
2 consideration to develop the procurement plans and to
3 serve as the procurement administrator. The Agency shall
4 also provide each qualified expert's or expert consulting
5 firm's response to the request for qualifications. All
6 information provided under this subparagraph shall also be
7 provided to the Commission. The Agency may provide by rule
8 for fees associated with supplying the information to
9 utilities and other interested parties. These parties
10 shall, within 5 business days, notify the Agency in
11 writing if they object to any experts or expert consulting
12 firms on the lists. Objections shall be based on:
13 (A) failure to satisfy qualification criteria;
14 (B) identification of a conflict of interest; or
15 (C) evidence of inappropriate bias for or against
16 potential bidders or the affected utilities.
17 The Agency shall remove experts or expert consulting
18 firms from the lists within 10 days if there is a
19 reasonable basis for an objection and provide the updated
20 lists to the affected utilities and other interested
21 parties. If the Agency fails to remove an expert or expert
22 consulting firm from a list, an objecting party may seek
23 review by the Commission within 5 days thereafter by
24 filing a petition, and the Commission shall render a
25 ruling on the petition within 10 days. There is no right of
26 appeal of the Commission's ruling.
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1 (4) The Agency shall issue requests for proposals to
2 the qualified experts or expert consulting firms to
3 develop a procurement plan for the affected utilities and
4 to serve as procurement administrator.
5 (5) The Agency shall select an expert or expert
6 consulting firm to develop procurement plans based on the
7 proposals submitted and shall award contracts of up to 5
8 years to those selected.
9 (6) The Agency shall select an expert or expert
10 consulting firm, with approval of the Commission, to serve
11 as procurement administrator based on the proposals
12 submitted. If the Commission rejects, within 5 days, the
13 Agency's selection, the Agency shall submit another
14 recommendation within 3 days based on the proposals
15 submitted. The Agency shall award a 5-year contract to the
16 expert or expert consulting firm so selected with
17 Commission approval.
18 (b) The experts or expert consulting firms retained by the
19 Agency shall, as appropriate, prepare procurement plans, and
20 conduct a competitive procurement process as prescribed in
21 Section 16-111.5 of the Public Utilities Act, to ensure
22 adequate, reliable, affordable, efficient, and environmentally
23 sustainable electric service at the lowest total cost over
24 time, taking into account any benefits of price stability, for
25 eligible retail customers of electric utilities that on
26 December 31, 2005 provided electric service to at least
HB1700 Enrolled - 112 - LRB104 08228 SPS 18278 b
1 100,000 customers in the State of Illinois, and for eligible
2 Illinois retail customers of small multi-jurisdictional
3 electric utilities that (i) on December 31, 2005 served less
4 than 100,000 customers in Illinois and (ii) request a
5 procurement plan for their Illinois jurisdictional load.
6 (c) Renewable portfolio standard.
7 (1)(A) The Agency shall develop a long-term renewable
8 resources procurement plan that shall include procurement
9 programs and competitive procurement events necessary to
10 meet the goals set forth in this subsection (c). The
11 initial long-term renewable resources procurement plan
12 shall be released for comment no later than 160 days after
13 June 1, 2017 (the effective date of Public Act 99-906).
14 The Agency shall review, and may revise on an expedited
15 basis, the long-term renewable resources procurement plan
16 at least every 2 years, which shall be conducted in
17 conjunction with the procurement plan under Section
18 16-111.5 of the Public Utilities Act to the extent
19 practicable to minimize administrative expense. No later
20 than 120 days after the effective date of this amendatory
21 Act of the 103rd General Assembly, the Agency shall
22 release for comment a revision to the long-term renewable
23 resources procurement plan, updating elements of the most
24 recently approved plan as needed to comply with this
25 amendatory Act of the 103rd General Assembly, and any
26 long-term renewable resources procurement plan update
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1 published by the Agency but not yet approved by the
2 Illinois Commerce Commission shall be withdrawn. The
3 long-term renewable resources procurement plans shall be
4 subject to review and approval by the Commission under
5 Section 16-111.5 of the Public Utilities Act.
6 (B) Subject to subparagraph (F) of this paragraph (1),
7 the long-term renewable resources procurement plan shall
8 attempt to meet the goals for procurement of renewable
9 energy credits at levels of at least the following overall
10 percentages: 13% by the 2017 delivery year; increasing by
11 at least 1.5% each delivery year thereafter to at least
12 25% by the 2025 delivery year; increasing by at least 3%
13 each delivery year thereafter to at least 40% by the 2030
14 delivery year, and continuing at no less than 40% for each
15 delivery year thereafter. The Agency shall attempt to
16 procure 50% by delivery year 2040. The Agency shall
17 determine the annual increase between delivery year 2030
18 and delivery year 2040, if any, taking into account energy
19 demand, other energy resources, and other public policy
20 goals. In the event of a conflict between these goals and
21 the new wind, new photovoltaic, and hydropower procurement
22 requirements described in items (i) through (iii) of
23 subparagraph (C) of this paragraph (1), the long-term plan
24 shall prioritize compliance with the new wind, new
25 photovoltaic, and hydropower procurement requirements
26 described in items (i) through (iii) of subparagraph (C)
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1 of this paragraph (1) over the annual percentage targets
2 described in this subparagraph (B). The Agency shall not
3 comply with the annual percentage targets described in
4 this subparagraph (B) by procuring renewable energy
5 credits that are unlikely to lead to the development of
6 new renewable resources or new, modernized, or retooled
7 hydropower facilities.
8 For the delivery year beginning June 1, 2017, the
9 procurement plan shall attempt to include, subject to the
10 prioritization outlined in this subparagraph (B),
11 cost-effective renewable energy resources equal to at
12 least 13% of each utility's load for eligible retail
13 customers and 13% of the applicable portion of each
14 utility's load for retail customers who are not eligible
15 retail customers, which applicable portion shall equal 50%
16 of the utility's load for retail customers who are not
17 eligible retail customers on February 28, 2017.
18 For the delivery year beginning June 1, 2018, the
19 procurement plan shall attempt to include, subject to the
20 prioritization outlined in this subparagraph (B),
21 cost-effective renewable energy resources equal to at
22 least 14.5% of each utility's load for eligible retail
23 customers and 14.5% of the applicable portion of each
24 utility's load for retail customers who are not eligible
25 retail customers, which applicable portion shall equal 75%
26 of the utility's load for retail customers who are not
HB1700 Enrolled - 115 - LRB104 08228 SPS 18278 b
1 eligible retail customers on February 28, 2017.
2 For the delivery year beginning June 1, 2019, and for
3 each year thereafter, the procurement plans shall attempt
4 to include, subject to the prioritization outlined in this
5 subparagraph (B), cost-effective renewable energy
6 resources equal to a minimum percentage of each utility's
7 load for all retail customers as follows: 16% by June 1,
8 2019; increasing by 1.5% each year thereafter to 25% by
9 June 1, 2025; and 25% by June 1, 2026; increasing by at
10 least 3% each delivery year thereafter to at least 40% by
11 the 2030 delivery year, and continuing at no less than 40%
12 for each delivery year thereafter. The Agency shall
13 attempt to procure 50% by delivery year 2040. The Agency
14 shall determine the annual increase between delivery year
15 2030 and delivery year 2040, if any, taking into account
16 energy demand, other energy resources, and other public
17 policy goals.
18 For each delivery year, the Agency shall first
19 recognize each utility's obligations for that delivery
20 year under existing contracts. Any renewable energy
21 credits under existing contracts, including renewable
22 energy credits as part of renewable energy resources,
23 shall be used to meet the goals set forth in this
24 subsection (c) for the delivery year.
25 (C) The long-term renewable resources procurement plan
26 described in subparagraph (A) of this paragraph (1) shall
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1 include the procurement of renewable energy credits from
2 new projects pursuant to the following terms:
3 (i) At least 10,000,000 renewable energy credits
4 delivered annually by the end of the 2021 delivery
5 year, and increasing ratably to reach 45,000,000
6 renewable energy credits delivered annually from new
7 wind and solar projects, from repowered wind projects,
8 or from retooled hydropower facilities by the end of
9 delivery year 2030 such that the goals in subparagraph
10 (B) of this paragraph (1) are met entirely by
11 procurements of renewable energy credits from new wind
12 and photovoltaic projects. Of that amount, to the
13 extent possible, the Agency shall endeavor to procure
14 45% from new and repowered wind and hydropower
15 projects and shall procure at least 55% from
16 photovoltaic projects. Of the amount to be procured
17 from photovoltaic projects, the Agency shall procure:
18 at least 50% from solar photovoltaic projects using
19 the program outlined in subparagraph (K) of this
20 paragraph (1) from distributed renewable energy
21 generation devices or community renewable generation
22 projects; at least 47% from utility-scale solar
23 projects; at least 3% from brownfield site
24 photovoltaic projects that are not community renewable
25 generation projects. The Agency may propose
26 adjustments to these percentages, including
HB1700 Enrolled - 117 - LRB104 08228 SPS 18278 b
1 establishing percentage-based goals for the
2 procurement of renewable energy credits from
3 modernized or retooled hydropower facilities and
4 repowered wind projects, through its long-term
5 renewable resources plan described in subparagraph (A)
6 of this paragraph (1) as necessary based on developer
7 interest, market conditions, budget considerations,
8 resource adequacy needs, or other factors.
9 In developing the long-term renewable resources
10 procurement plan, the Agency shall consider other
11 approaches, in addition to competitive procurements,
12 that can be used to procure renewable energy credits
13 from brownfield site photovoltaic projects and thereby
14 help return blighted or contaminated land to
15 productive use while enhancing public health and the
16 well-being of Illinois residents, including those in
17 environmental justice communities, as defined using
18 existing methodologies and findings used by the Agency
19 and its Administrator in its Illinois Solar for All
20 Program. The Agency shall also consider other
21 approaches, in addition to competitive procurements,
22 to procure renewable energy credits from new and
23 existing hydropower facilities to support the
24 development and maintenance of these facilities. The
25 Agency shall explore options to convert existing dams
26 but shall not consider approaches to develop new dams
HB1700 Enrolled - 118 - LRB104 08228 SPS 18278 b
1 where they do not already exist. To encourage the
2 continued operation of utility-scale wind projects,
3 the Agency shall consider and may propose other
4 approaches in addition to competitive procurements to
5 procure renewable energy credits from repowered wind
6 projects.
7 (ii) In any given delivery year, if forecasted
8 expenses are less than the maximum budget available
9 under subparagraph (E) of this paragraph (1), the
10 Agency shall continue to procure new renewable energy
11 credits until that budget is exhausted in the manner
12 outlined in item (i) of this subparagraph (C).
13 (iii) For purposes of this Section:
14 "New wind projects" means wind renewable energy
15 facilities that are energized after June 1, 2017 for
16 the delivery year commencing June 1, 2017.
17 "New photovoltaic projects" means photovoltaic
18 renewable energy facilities that are energized after
19 June 1, 2017. Photovoltaic projects developed under
20 Section 1-56 of this Act shall not apply towards the
21 new photovoltaic project requirements in this
22 subparagraph (C).
23 "Repowered wind projects" means utility-scale wind
24 projects featuring the removal, replacement, or
25 expansion of turbines at an existing project site, as
26 defined in the long-term renewable resources
HB1700 Enrolled - 119 - LRB104 08228 SPS 18278 b
1 procurement plan, after the effective date of this
2 amendatory Act of the 103rd General Assembly.
3 Renewable energy credit contract awards used to
4 support repowered wind projects shall only cover the
5 incremental increase in facility electricity
6 production resultant from repowering.
7 For purposes of calculating whether the Agency has
8 procured enough new wind and solar renewable energy
9 credits required by this subparagraph (C), renewable
10 energy facilities that have a multi-year renewable
11 energy credit delivery contract with the utility
12 through at least delivery year 2030 shall be
13 considered new, however no renewable energy credits
14 from contracts entered into before June 1, 2021 shall
15 be used to calculate whether the Agency has procured
16 the correct proportion of new wind and new solar
17 contracts described in this subparagraph (C) for
18 delivery year 2021 and thereafter.
19 (D) Renewable energy credits shall be cost effective.
20 For purposes of this subsection (c), "cost effective"
21 means that the costs of procuring renewable energy
22 resources do not cause the limit stated in subparagraph
23 (E) of this paragraph (1) to be exceeded and, for
24 renewable energy credits procured through a competitive
25 procurement event, do not exceed benchmarks based on
26 market prices for like products in the region. For
HB1700 Enrolled - 120 - LRB104 08228 SPS 18278 b
1 purposes of this subsection (c), "like products" means
2 contracts for renewable energy credits from the same or
3 substantially similar technology, same or substantially
4 similar vintage (new or existing), the same or
5 substantially similar quantity, and the same or
6 substantially similar contract length and structure.
7 Benchmarks shall reflect development, financing, or
8 related costs resulting from requirements imposed through
9 other provisions of State law, including, but not limited
10 to, requirements in subparagraphs (P) and (Q) of this
11 paragraph (1) and the Renewable Energy Facilities
12 Agricultural Impact Mitigation Act. Confidential
13 benchmarks shall be developed by the procurement
14 administrator, in consultation with the Commission staff,
15 Agency staff, and the procurement monitor and shall be
16 subject to Commission review and approval. If price
17 benchmarks for like products in the region are not
18 available, the procurement administrator shall establish
19 price benchmarks based on publicly available data on
20 regional technology costs and expected current and future
21 regional energy prices. The benchmarks in this Section
22 shall not be used to curtail or otherwise reduce
23 contractual obligations entered into by or through the
24 Agency prior to June 1, 2017 (the effective date of Public
25 Act 99-906).
26 (E) For purposes of this subsection (c), the required
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1 procurement of cost-effective renewable energy resources
2 for a particular year commencing prior to June 1, 2017
3 shall be measured as a percentage of the actual amount of
4 electricity (megawatt-hours) supplied by the electric
5 utility to eligible retail customers in the delivery year
6 ending immediately prior to the procurement, and, for
7 delivery years commencing on and after June 1, 2017, the
8 required procurement of cost-effective renewable energy
9 resources for a particular year shall be measured as a
10 percentage of the actual amount of electricity
11 (megawatt-hours) delivered by the electric utility in the
12 delivery year ending immediately prior to the procurement,
13 to all retail customers in its service territory. For
14 purposes of this subsection (c), the amount paid per
15 kilowatthour means the total amount paid for electric
16 service expressed on a per kilowatthour basis. For
17 purposes of this subsection (c), the total amount paid for
18 electric service includes without limitation amounts paid
19 for supply, transmission, capacity, distribution,
20 surcharges, and add-on taxes.
21 Notwithstanding the requirements of this subsection
22 (c), and except as provided in subparagraph (E-5) of
23 paragraph (1) of this subsection (c), the total of
24 renewable energy resources procured under the procurement
25 plan for any single year shall be subject to the
26 limitations of this subparagraph (E). Such procurement
HB1700 Enrolled - 122 - LRB104 08228 SPS 18278 b
1 shall be reduced for all retail customers based on the
2 amount necessary to limit the annual estimated average net
3 increase due to the costs of these resources included in
4 the amounts paid by eligible retail customers in
5 connection with electric service to no more than 4.25% of
6 the amount paid per kilowatthour by those customers during
7 the year ending May 31, 2009. To arrive at a maximum dollar
8 amount of renewable energy resources to be procured for
9 the particular delivery year, the resulting per
10 kilowatthour amount shall be applied to the actual amount
11 of kilowatthours of electricity delivered, or applicable
12 portion of such amount as specified in paragraph (1) of
13 this subsection (c), as applicable, by the electric
14 utility in the delivery year immediately prior to the
15 procurement to all retail customers in its service
16 territory. The calculations required by this subparagraph
17 (E) shall be made only once for each delivery year at the
18 time that the renewable energy resources are procured.
19 Once the determination as to the amount of renewable
20 energy resources to procure is made based on the
21 calculations set forth in this subparagraph (E) and the
22 contracts procuring those amounts are executed between the
23 seller and applicable electric utility, no subsequent rate
24 impact determinations shall be made and no adjustments to
25 those contract amounts shall be allowed. As provided in
26 subparagraph (E-5) of paragraph (1) of this subsection
HB1700 Enrolled - 123 - LRB104 08228 SPS 18278 b
1 (c), the seller shall be entitled to full, prompt, and
2 uninterrupted payment under the applicable contract
3 notwithstanding the application of this subparagraph (E),
4 and all costs incurred under such contracts shall be fully
5 recoverable by the electric utility as provided in this
6 Section.
7 (E-5) If, for a particular delivery year, the
8 limitation on the amount of renewable energy resources to
9 be procured, as calculated pursuant to subparagraph (E) of
10 paragraph (1) of this subsection (c), would result in an
11 insufficient collection of funds to fully pay amounts due
12 to a seller under existing contracts executed under this
13 Section or executed under Section 1-56 of this Act, then
14 the following provisions shall apply to ensure full and
15 uninterrupted payment is made to such seller or sellers:
16 (i) If the electric utility has retained unspent
17 funds in an interest-bearing account as prescribed in
18 subsection (k) of Section 16-108 of the Public
19 Utilities Act, then the utility shall use those funds
20 to remit full payment to the sellers to ensure prompt
21 and uninterrupted payment of existing contractual
22 obligation.
23 (ii) If the funds described in item (i) of this
24 subparagraph (E-5) are insufficient to satisfy all
25 existing contractual obligations, then the electric
26 utility shall, nonetheless, remit full payment to the
HB1700 Enrolled - 124 - LRB104 08228 SPS 18278 b
1 sellers to ensure prompt and uninterrupted payment of
2 existing contractual obligations, provided that the
3 full costs shall be recoverable by the utility in
4 accordance with part (ee) of item (iv) of this
5 subsection (E-5).
6 (iii) The Agency shall promptly notify the
7 Commission that existing contractual obligations are
8 reasonably expected to exceed the maximum collection
9 authorized under subparagraph (E) of paragraph (1) of
10 this subsection (c) for the applicable delivery year.
11 The Agency shall also explain and confirm how the
12 operation of items (i) and (ii) of this subparagraph
13 (E-5) ensures that the electric utility will continue
14 to make prompt and uninterrupted payment under
15 existing contractual obligations. The Agency shall
16 provide this information to the Commission through a
17 notice filed in the Commission docket approving the
18 Agency's operative Long-Term Renewable Resources
19 Procurement Plan that includes the applicable delivery
20 year.
21 (iv) The Agency shall suspend or reduce new
22 contract awards for the procurement of renewable
23 energy credits until an Agency determination is made
24 under subparagraph (E) that additional procurements
25 would not cause the rate impact limitation of
26 subparagraph (E) to be exceeded. At least once
HB1700 Enrolled - 125 - LRB104 08228 SPS 18278 b
1 annually after the notice provided for in item (iii)
2 of this subparagraph (E-5) is made, the Agency shall
3 analyze existing contract obligations, projected
4 prices for indexed renewable energy credit contracts
5 executed under item (v) of subparagraph (G) of
6 paragraph (1) of subsection (c) of Section 1-75 of
7 this Act, and expected collections authorized under
8 subparagraph (E) to determine whether and to what
9 extent the limitations of subparagraph (E) would be
10 exceeded by additional renewable energy credit
11 procurement contract awards.
12 (aa) If the Agency determines that additional
13 renewable energy credit procurement contract
14 awards could be made without exceeding the
15 limitations of subparagraph (E), then the
16 procurements shall be authorized at a scale
17 determined not to exceed the limitations of
18 subparagraph (E) in a manner consistent with the
19 priorities of this Section.
20 (bb) If the Agency determines that additional
21 renewable energy credit procurement contract
22 awards cannot be made without exceeding the
23 limitations of subparagraph (E), then the Agency
24 shall suspend any new contract awards for the
25 procurement of renewable energy credits until a
26 new rate impact determination is made under
HB1700 Enrolled - 126 - LRB104 08228 SPS 18278 b
1 subparagraph (E).
2 (cc) Agency determinations made under this
3 item (iv) shall be detailed and comprehensive and,
4 if not made through the Agency's Long-Term
5 Renewable Resources Procurement Plan, shall be
6 filed as a compliance filing in the most recent
7 docketed proceeding approving the Agency's
8 Long-Term Renewable Resources Procurement Plan.
9 (dd) With respect to the procurement of
10 renewable energy credits authorized through
11 programs administered under subsection (b) of
12 Section 1-56 and subparagraphs (K) through (M) of
13 paragraph (1) of subsection (k) of Section 1-75 of
14 this Act, the award of contracts for the
15 procurement of renewable energy credits shall be
16 suspended or reduced only at the conclusion of the
17 program year in which the notice provided for
18 under item (iii) of this subparagraph (E-5) is
19 made.
20 (ee) The contract shall provide that, so long
21 as at least one of: (i) the cost recovery
22 mechanisms referenced in subsection (k) of Section
23 16-108 and subsection (l) of Section 16-111.5 of
24 the Public Utilities Act remains in full force
25 without limitation or (ii) the utility is
26 otherwise authorized and or entitled to full,
HB1700 Enrolled - 127 - LRB104 08228 SPS 18278 b
1 prompt, and uninterrupted recovery of its costs
2 through any other mechanism, then such seller
3 shall be entitled to full, prompt, and
4 uninterrupted payment under the applicable
5 contract notwithstanding the application of this
6 subparagraph (E).
7 (F) If the limitation on the amount of renewable
8 energy resources procured in subparagraph (E) of this
9 paragraph (1) prevents the Agency from meeting all of the
10 goals in this subsection (c), the Agency's long-term plan
11 shall prioritize compliance with the requirements of this
12 subsection (c) regarding renewable energy credits in the
13 following order:
14 (i) renewable energy credits under existing
15 contractual obligations as of June 1, 2021;
16 (i-5) funding for the Illinois Solar for All
17 Program, as described in subparagraph (O) of this
18 paragraph (1);
19 (ii) renewable energy credits necessary to comply
20 with the new wind and new photovoltaic procurement
21 requirements described in items (i) through (iii) of
22 subparagraph (C) of this paragraph (1); and
23 (iii) renewable energy credits necessary to meet
24 the remaining requirements of this subsection (c).
25 (G) The following provisions shall apply to the
26 Agency's procurement of renewable energy credits under
HB1700 Enrolled - 128 - LRB104 08228 SPS 18278 b
1 this subsection (c):
2 (i) 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 wind projects within 160 days after June 1, 2017 (the
7 effective date of Public Act 99-906). For the purposes
8 of this initial forward procurement, the Agency shall
9 solicit 15-year contracts for delivery of 1,000,000
10 renewable energy credits delivered annually from new
11 utility-scale wind projects to begin delivery on June
12 1, 2019, if available, but not later than June 1, 2021,
13 unless the project has delays in the establishment of
14 an operating interconnection with the applicable
15 transmission or distribution system as a result of the
16 actions or inactions of the transmission or
17 distribution provider, or other causes for force
18 majeure as outlined in the procurement contract, in
19 which case, not later than June 1, 2022. Payments to
20 suppliers of renewable energy credits shall commence
21 upon delivery. Renewable energy credits procured under
22 this initial procurement shall be included in the
23 Agency's long-term plan and shall apply to all
24 renewable energy goals in this subsection (c).
25 (ii) Notwithstanding whether a long-term renewable
26 resources procurement plan has been approved, the
HB1700 Enrolled - 129 - LRB104 08228 SPS 18278 b
1 Agency shall conduct an initial forward procurement
2 for renewable energy credits from new utility-scale
3 solar projects and brownfield site photovoltaic
4 projects within one year after June 1, 2017 (the
5 effective date of Public Act 99-906). For the purposes
6 of this initial forward procurement, the Agency shall
7 solicit 15-year contracts for delivery of 1,000,000
8 renewable energy credits delivered annually from new
9 utility-scale solar projects and brownfield site
10 photovoltaic projects to begin delivery on June 1,
11 2019, if available, but not later than June 1, 2021,
12 unless the project has delays in the establishment of
13 an operating interconnection with the applicable
14 transmission or distribution system as a result of the
15 actions or inactions of the transmission or
16 distribution provider, or other causes for force
17 majeure as outlined in the procurement contract, in
18 which case, not later than June 1, 2022. The Agency may
19 structure this initial procurement in one or more
20 discrete procurement events. Payments to suppliers of
21 renewable energy credits shall commence upon delivery.
22 Renewable energy credits procured under this initial
23 procurement shall be included in the Agency's
24 long-term plan and shall apply to all renewable energy
25 goals in this subsection (c).
26 (iii) Notwithstanding whether the Commission has
HB1700 Enrolled - 130 - LRB104 08228 SPS 18278 b
1 approved the periodic long-term renewable resources
2 procurement plan revision described in Section
3 16-111.5 of the Public Utilities Act, the Agency shall
4 conduct at least one subsequent forward procurement
5 for renewable energy credits from new utility-scale
6 wind projects, new utility-scale solar projects, and
7 new brownfield site photovoltaic projects within 240
8 days after the effective date of this amendatory Act
9 of the 102nd General Assembly in quantities necessary
10 to meet the requirements of subparagraph (C) of this
11 paragraph (1) through the delivery year beginning June
12 1, 2021.
13 (iv) Notwithstanding whether the Commission has
14 approved the periodic long-term renewable resources
15 procurement plan revision described in Section
16 16-111.5 of the Public Utilities Act, the Agency shall
17 open capacity for each category in the Adjustable
18 Block program within 90 days after the effective date
19 of this amendatory Act of the 102nd General Assembly
20 manner:
21 (1) The Agency shall open the first block of
22 annual capacity for the category described in item
23 (i) of subparagraph (K) of this paragraph (1). The
24 first block of annual capacity for item (i) shall
25 be for at least 75 megawatts of total nameplate
26 capacity. The price of the renewable energy credit
HB1700 Enrolled - 131 - LRB104 08228 SPS 18278 b
1 for this block of capacity shall be 4% less than
2 the price of the last open block in this category.
3 Projects on a waitlist shall be awarded contracts
4 first in the order in which they appear on the
5 waitlist. Notwithstanding anything to the
6 contrary, for those renewable energy credits that
7 qualify and are procured under this subitem (1) of
8 this item (iv), the renewable energy credit
9 delivery contract value shall be paid in full,
10 based on the estimated generation during the first
11 15 years of operation, by the contracting
12 utilities at the time that the facility producing
13 the renewable energy credits is interconnected at
14 the distribution system level of the utility and
15 verified as energized and in compliance by the
16 Program Administrator. The electric utility shall
17 receive and retire all renewable energy credits
18 generated by the project for the first 15 years of
19 operation. Renewable energy credits generated by
20 the project thereafter shall not be transferred
21 under the renewable energy credit delivery
22 contract with the counterparty electric utility.
23 (2) The Agency shall open the first block of
24 annual capacity for the category described in item
25 (ii) of subparagraph (K) of this paragraph (1).
26 The first block of annual capacity for item (ii)
HB1700 Enrolled - 132 - LRB104 08228 SPS 18278 b
1 shall be for at least 75 megawatts of total
2 nameplate capacity.
3 (A) The price of the renewable energy
4 credit for any project on a waitlist for this
5 category before the opening of this block
6 shall be 4% less than the price of the last
7 open block in this category. Projects on the
8 waitlist shall be awarded contracts first in
9 the order in which they appear on the
10 waitlist. Any projects that are less than or
11 equal to 25 kilowatts in size on the waitlist
12 for this capacity shall be moved to the
13 waitlist for paragraph (1) of this item (iv).
14 Notwithstanding anything to the contrary,
15 projects that were on the waitlist prior to
16 opening of this block shall not be required to
17 be in compliance with the requirements of
18 subparagraph (Q) of this paragraph (1) of this
19 subsection (c). Notwithstanding anything to
20 the contrary, for those renewable energy
21 credits procured from projects that were on
22 the waitlist for this category before the
23 opening of this block 20% of the renewable
24 energy credit delivery contract value, based
25 on the estimated generation during the first
26 15 years of operation, shall be paid by the
HB1700 Enrolled - 133 - LRB104 08228 SPS 18278 b
1 contracting utilities at the time that the
2 facility producing the renewable energy
3 credits is interconnected at the distribution
4 system level of the utility and verified as
5 energized by the Program Administrator. The
6 remaining portion shall be paid ratably over
7 the subsequent 4-year period. The electric
8 utility shall receive and retire all renewable
9 energy credits generated by the project during
10 the first 15 years of operation. Renewable
11 energy credits generated by the project
12 thereafter shall not be transferred under the
13 renewable energy credit delivery contract with
14 the counterparty electric utility.
15 (B) The price of renewable energy credits
16 for any project not on the waitlist for this
17 category before the opening of the block shall
18 be determined and published by the Agency.
19 Projects not on a waitlist as of the opening
20 of this block shall be subject to the
21 requirements of subparagraph (Q) of this
22 paragraph (1), as applicable. Projects not on
23 a waitlist as of the opening of this block
24 shall be subject to the contract provisions
25 outlined in item (iii) of subparagraph (L) of
26 this paragraph (1). The Agency shall strive to
HB1700 Enrolled - 134 - LRB104 08228 SPS 18278 b
1 publish updated prices and an updated
2 renewable energy credit delivery contract as
3 quickly as possible.
4 (3) For opening the first 2 blocks of annual
5 capacity for projects participating in item (iii)
6 of subparagraph (K) of paragraph (1) of subsection
7 (c), projects shall be selected exclusively from
8 those projects on the ordinal waitlists of
9 community renewable generation projects
10 established by the Agency based on the status of
11 those ordinal waitlists as of December 31, 2020,
12 and only those projects previously determined to
13 be eligible for the Agency's April 2019 community
14 solar project selection process.
15 The first 2 blocks of annual capacity for item
16 (iii) shall be for 250 megawatts of total
17 nameplate capacity, with both blocks opening
18 simultaneously under the schedule outlined in the
19 paragraphs below. Projects shall be selected as
20 follows:
21 (A) The geographic balance of selected
22 projects shall follow the Group classification
23 found in the Agency's Revised Long-Term
24 Renewable Resources Procurement Plan, with 70%
25 of capacity allocated to projects on the Group
26 B waitlist and 30% of capacity allocated to
HB1700 Enrolled - 135 - LRB104 08228 SPS 18278 b
1 projects on the Group A waitlist.
2 (B) Contract awards for waitlisted
3 projects shall be allocated proportionate to
4 the total nameplate capacity amount across
5 both ordinal waitlists associated with that
6 applicant firm or its affiliates, subject to
7 the following conditions.
8 (i) Each applicant firm having a
9 waitlisted project eligible for selection
10 shall receive no less than 500 kilowatts
11 in awarded capacity across all groups, and
12 no approved vendor may receive more than
13 20% of each Group's waitlist allocation.
14 (ii) Each applicant firm, upon
15 receiving an award of program capacity
16 proportionate to its waitlisted capacity,
17 may then determine which waitlisted
18 projects it chooses to be selected for a
19 contract award up to that capacity amount.
20 (iii) Assuming all other program
21 requirements are met, applicant firms may
22 adjust the nameplate capacity of applicant
23 projects without losing waitlist
24 eligibility, so long as no project is
25 greater than 2,000 kilowatts in size.
26 (iv) Assuming all other program
HB1700 Enrolled - 136 - LRB104 08228 SPS 18278 b
1 requirements are met, applicant firms may
2 adjust the expected production associated
3 with applicant projects, subject to
4 verification by the Program Administrator.
5 (C) After a review of affiliate
6 information and the current ordinal waitlists,
7 the Agency shall announce the nameplate
8 capacity award amounts associated with
9 applicant firms no later than 90 days after
10 the effective date of this amendatory Act of
11 the 102nd General Assembly.
12 (D) Applicant firms shall submit their
13 portfolio of projects used to satisfy those
14 contract awards no less than 90 days after the
15 Agency's announcement. The total nameplate
16 capacity of all projects used to satisfy that
17 portfolio shall be no greater than the
18 Agency's nameplate capacity award amount
19 associated with that applicant firm. An
20 applicant firm may decline, in whole or in
21 part, its nameplate capacity award without
22 penalty, with such unmet capacity rolled over
23 to the next block opening for project
24 selection under item (iii) of subparagraph (K)
25 of this subsection (c). Any projects not
26 included in an applicant firm's portfolio may
HB1700 Enrolled - 137 - LRB104 08228 SPS 18278 b
1 reapply without prejudice upon the next block
2 reopening for project selection under item
3 (iii) of subparagraph (K) of this subsection
4 (c).
5 (E) The renewable energy credit delivery
6 contract shall be subject to the contract and
7 payment terms outlined in item (iv) of
8 subparagraph (L) of this subsection (c).
9 Contract instruments used for this
10 subparagraph shall contain the following
11 terms:
12 (i) Renewable energy credit prices
13 shall be fixed, without further adjustment
14 under any other provision of this Act or
15 for any other reason, at 10% lower than
16 prices applicable to the last open block
17 for this category, inclusive of any adders
18 available for achieving a minimum of 50%
19 of subscribers to the project's nameplate
20 capacity being residential or small
21 commercial customers with subscriptions of
22 below 25 kilowatts in size;
23 (ii) A requirement that a minimum of
24 50% of subscribers to the project's
25 nameplate capacity be residential or small
26 commercial customers with subscriptions of
HB1700 Enrolled - 138 - LRB104 08228 SPS 18278 b
1 below 25 kilowatts in size;
2 (iii) Permission for the ability of a
3 contract holder to substitute projects
4 with other waitlisted projects without
5 penalty should a project receive a
6 non-binding estimate of costs to construct
7 the interconnection facilities and any
8 required distribution upgrades associated
9 with that project of greater than 30 cents
10 per watt AC of that project's nameplate
11 capacity. In developing the applicable
12 contract instrument, the Agency may
13 consider whether other circumstances
14 outside of the control of the applicant
15 firm should also warrant project
16 substitution rights.
17 The Agency shall publish a finalized
18 updated renewable energy credit delivery
19 contract developed consistent with these terms
20 and conditions no less than 30 days before
21 applicant firms must submit their portfolio of
22 projects pursuant to item (D).
23 (F) To be eligible for an award, the
24 applicant firm shall certify that not less
25 than prevailing wage, as determined pursuant
26 to the Illinois Prevailing Wage Act, was or
HB1700 Enrolled - 139 - LRB104 08228 SPS 18278 b
1 will be paid to employees who are engaged in
2 construction activities associated with a
3 selected project.
4 (4) The Agency shall open the first block of
5 annual capacity for the category described in item
6 (iv) of subparagraph (K) of this paragraph (1).
7 The first block of annual capacity for item (iv)
8 shall be for at least 50 megawatts of total
9 nameplate capacity. Renewable energy credit prices
10 shall be fixed, without further adjustment under
11 any other provision of this Act or for any other
12 reason, at the price in the last open block in the
13 category described in item (ii) of subparagraph
14 (K) of this paragraph (1). Pricing for future
15 blocks of annual capacity for this category may be
16 adjusted in the Agency's second revision to its
17 Long-Term Renewable Resources Procurement Plan.
18 Projects in this category shall be subject to the
19 contract terms outlined in item (iv) of
20 subparagraph (L) of this paragraph (1).
21 (5) The Agency shall open the equivalent of 2
22 years of annual capacity for the category
23 described in item (v) of subparagraph (K) of this
24 paragraph (1). The first block of annual capacity
25 for item (v) shall be for at least 10 megawatts of
26 total nameplate capacity. Notwithstanding the
HB1700 Enrolled - 140 - LRB104 08228 SPS 18278 b
1 provisions of item (v) of subparagraph (K) of this
2 paragraph (1), for the purpose of this initial
3 block, the agency shall accept new project
4 applications intended to increase the diversity of
5 areas hosting community solar projects, the
6 business models of projects, and the size of
7 projects, as described by the Agency in its
8 long-term renewable resources procurement plan
9 that is approved as of the effective date of this
10 amendatory Act of the 102nd General Assembly.
11 Projects in this category shall be subject to the
12 contract terms outlined in item (iii) of
13 subsection (L) of this paragraph (1).
14 (6) The Agency shall open the first blocks of
15 annual capacity for the category described in item
16 (vi) of subparagraph (K) of this paragraph (1),
17 with allocations of capacity within the block
18 generally matching the historical share of block
19 capacity allocated between the category described
20 in items (i) and (ii) of subparagraph (K) of this
21 paragraph (1). The first two blocks of annual
22 capacity for item (vi) shall be for at least 75
23 megawatts of total nameplate capacity. The price
24 of renewable energy credits for the blocks of
25 capacity shall be 4% less than the price of the
26 last open blocks in the categories described in
HB1700 Enrolled - 141 - LRB104 08228 SPS 18278 b
1 items (i) and (ii) of subparagraph (K) of this
2 paragraph (1). Pricing for future blocks of annual
3 capacity for this category may be adjusted in the
4 Agency's second revision to its Long-Term
5 Renewable Resources Procurement Plan. Projects in
6 this category shall be subject to the applicable
7 contract terms outlined in items (ii) and (iii) of
8 subparagraph (L) of this paragraph (1).
9 (v) Upon the effective date of this amendatory Act
10 of the 102nd General Assembly, for all competitive
11 procurements and any procurements of renewable energy
12 credit from new utility-scale wind and new
13 utility-scale photovoltaic projects, the Agency shall
14 procure indexed renewable energy credits and direct
15 respondents to offer a strike price.
16 (1) The purchase price of the indexed
17 renewable energy credit payment shall be
18 calculated for each settlement period. That
19 payment, for any settlement period, shall be equal
20 to the difference resulting from subtracting the
21 strike price from the index price for that
22 settlement period. If this difference results in a
23 negative number, the indexed REC counterparty
24 shall owe the seller the absolute value multiplied
25 by the quantity of energy produced in the relevant
26 settlement period. If this difference results in a
HB1700 Enrolled - 142 - LRB104 08228 SPS 18278 b
1 positive number, the seller shall owe the indexed
2 REC counterparty this amount multiplied by the
3 quantity of energy produced in the relevant
4 settlement period.
5 (2) Parties shall cash settle every month,
6 summing up all settlements (both positive and
7 negative, if applicable) for the prior month.
8 (3) To ensure funding in the annual budget
9 established under subparagraph (E) for indexed
10 renewable energy credit procurements for each year
11 of the term of such contracts, which must have a
12 minimum tenure of 20 calendar years, the
13 procurement administrator, Agency, Commission
14 staff, and procurement monitor shall quantify the
15 annual cost of the contract by utilizing an
16 industry-standard, third-party forward price curve
17 for energy at the appropriate hub or load zone,
18 including the estimated magnitude and timing of
19 the price effects related to federal carbon
20 controls. Each forward price curve shall contain a
21 specific value of the forecasted market price of
22 electricity for each annual delivery year of the
23 contract. For procurement planning purposes, the
24 impact on the annual budget for the cost of
25 indexed renewable energy credits for each delivery
26 year shall be determined as the expected annual
HB1700 Enrolled - 143 - LRB104 08228 SPS 18278 b
1 contract expenditure for that year, equaling the
2 difference between (i) the sum across all relevant
3 contracts of the applicable strike price
4 multiplied by contract quantity and (ii) the sum
5 across all relevant contracts of the forward price
6 curve for the applicable load zone for that year
7 multiplied by contract quantity. The contracting
8 utility shall not assume an obligation in excess
9 of the estimated annual cost of the contracts for
10 indexed renewable energy credits. Forward curves
11 shall be revised on an annual basis as updated
12 forward price curves are released and filed with
13 the Commission in the proceeding approving the
14 Agency's most recent long-term renewable resources
15 procurement plan. If the expected contract spend
16 is higher or lower than the total quantity of
17 contracts multiplied by the forward price curve
18 value for that year, the forward price curve shall
19 be updated by the procurement administrator, in
20 consultation with the Agency, Commission staff,
21 and procurement monitors, using then-currently
22 available price forecast data and additional
23 budget dollars shall be obligated or reobligated
24 as appropriate.
25 (4) To ensure that indexed renewable energy
26 credit prices remain predictable and affordable,
HB1700 Enrolled - 144 - LRB104 08228 SPS 18278 b
1 the Agency may consider the institution of a price
2 collar on REC prices paid under indexed renewable
3 energy credit procurements establishing floor and
4 ceiling REC prices applicable to indexed REC
5 contract prices. Any price collars applicable to
6 indexed REC procurements shall be proposed by the
7 Agency through its long-term renewable resources
8 procurement plan.
9 (vi) All procurements under this subparagraph (G),
10 including the procurement of renewable energy credits
11 from hydropower facilities, shall comply with the
12 geographic requirements in subparagraph (I) of this
13 paragraph (1) and shall follow the procurement
14 processes and procedures described in this Section and
15 Section 16-111.5 of the Public Utilities Act to the
16 extent practicable, and these processes and procedures
17 may be expedited to accommodate the schedule
18 established by this subparagraph (G).
19 (vii) On and after the effective date of this
20 amendatory Act of the 103rd General Assembly, for all
21 procurements of renewable energy credits from
22 hydropower facilities, the Agency shall establish
23 contract terms designed to optimize existing
24 hydropower facilities through modernization or
25 retooling and establish new hydropower facilities at
26 existing dams. Procurements made under this item (vii)
HB1700 Enrolled - 145 - LRB104 08228 SPS 18278 b
1 shall prioritize projects located in designated
2 environmental justice communities, as defined in
3 subsection (b) of Section 1-56 of this Act, or in
4 projects located in units of local government with
5 median incomes that do not exceed 82% of the median
6 income of the State.
7 (H) The procurement of renewable energy resources for
8 a given delivery year shall be reduced as described in
9 this subparagraph (H) if an alternative retail electric
10 supplier meets the requirements described in this
11 subparagraph (H).
12 (i) Within 45 days after June 1, 2017 (the
13 effective date of Public Act 99-906), an alternative
14 retail electric supplier or its successor shall submit
15 an informational filing to the Illinois Commerce
16 Commission certifying that, as of December 31, 2015,
17 the alternative retail electric supplier owned one or
18 more electric generating facilities that generates
19 renewable energy resources as defined in Section 1-10
20 of this Act, provided that such facilities are not
21 powered by wind or photovoltaics, and the facilities
22 generate one renewable energy credit for each
23 megawatthour of energy produced from the facility.
24 The informational filing shall identify each
25 facility that was eligible to satisfy the alternative
26 retail electric supplier's obligations under Section
HB1700 Enrolled - 146 - LRB104 08228 SPS 18278 b
1 16-115D of the Public Utilities Act as described in
2 this item (i).
3 (ii) For a given delivery year, the alternative
4 retail electric supplier may elect to supply its
5 retail customers with renewable energy credits from
6 the facility or facilities described in item (i) of
7 this subparagraph (H) that continue to be owned by the
8 alternative retail electric supplier.
9 (iii) The alternative retail electric supplier
10 shall notify the Agency and the applicable utility, no
11 later than February 28 of the year preceding the
12 applicable delivery year or 15 days after June 1, 2017
13 (the effective date of Public Act 99-906), whichever
14 is later, of its election under item (ii) of this
15 subparagraph (H) to supply renewable energy credits to
16 retail customers of the utility. Such election shall
17 identify the amount of renewable energy credits to be
18 supplied by the alternative retail electric supplier
19 to the utility's retail customers and the source of
20 the renewable energy credits identified in the
21 informational filing as described in item (i) of this
22 subparagraph (H), subject to the following
23 limitations:
24 For the delivery year beginning June 1, 2018,
25 the maximum amount of renewable energy credits to
26 be supplied by an alternative retail electric
HB1700 Enrolled - 147 - LRB104 08228 SPS 18278 b
1 supplier under this subparagraph (H) shall be 68%
2 multiplied by 25% multiplied by 14.5% multiplied
3 by the amount of metered electricity
4 (megawatt-hours) delivered by the alternative
5 retail electric supplier to Illinois retail
6 customers during the delivery year ending May 31,
7 2016.
8 For delivery years beginning June 1, 2019 and
9 each year thereafter, the maximum amount of
10 renewable energy credits to be supplied by an
11 alternative retail electric supplier under this
12 subparagraph (H) shall be 68% multiplied by 50%
13 multiplied by 16% multiplied by the amount of
14 metered electricity (megawatt-hours) delivered by
15 the alternative retail electric supplier to
16 Illinois retail customers during the delivery year
17 ending May 31, 2016, provided that the 16% value
18 shall increase by 1.5% each delivery year
19 thereafter to 25% by the delivery year beginning
20 June 1, 2025, and thereafter the 25% value shall
21 apply to each delivery year.
22 For each delivery year, the total amount of
23 renewable energy credits supplied by all alternative
24 retail electric suppliers under this subparagraph (H)
25 shall not exceed 9% of the Illinois target renewable
26 energy credit quantity. The Illinois target renewable
HB1700 Enrolled - 148 - LRB104 08228 SPS 18278 b
1 energy credit quantity for the delivery year beginning
2 June 1, 2018 is 14.5% multiplied by the total amount of
3 metered electricity (megawatt-hours) delivered in the
4 delivery year immediately preceding that delivery
5 year, provided that the 14.5% shall increase by 1.5%
6 each delivery year thereafter to 25% by the delivery
7 year beginning June 1, 2025, and thereafter the 25%
8 value shall apply to each delivery year.
9 If the requirements set forth in items (i) through
10 (iii) of this subparagraph (H) are met, the charges
11 that would otherwise be applicable to the retail
12 customers of the alternative retail electric supplier
13 under paragraph (6) of this subsection (c) for the
14 applicable delivery year shall be reduced by the ratio
15 of the quantity of renewable energy credits supplied
16 by the alternative retail electric supplier compared
17 to that supplier's target renewable energy credit
18 quantity. The supplier's target renewable energy
19 credit quantity for the delivery year beginning June
20 1, 2018 is 14.5% multiplied by the total amount of
21 metered electricity (megawatt-hours) delivered by the
22 alternative retail supplier in that delivery year,
23 provided that the 14.5% shall increase by 1.5% each
24 delivery year thereafter to 25% by the delivery year
25 beginning June 1, 2025, and thereafter the 25% value
26 shall apply to each delivery year.
HB1700 Enrolled - 149 - LRB104 08228 SPS 18278 b
1 On or before April 1 of each year, the Agency shall
2 annually publish a report on its website that
3 identifies the aggregate amount of renewable energy
4 credits supplied by alternative retail electric
5 suppliers under this subparagraph (H).
6 (I) The Agency shall design its long-term renewable
7 energy procurement plan to maximize the State's interest
8 in the health, safety, and welfare of its residents,
9 including but not limited to minimizing sulfur dioxide,
10 nitrogen oxide, particulate matter and other pollution
11 that adversely affects public health in this State,
12 increasing fuel and resource diversity in this State,
13 enhancing the reliability and resiliency of the
14 electricity distribution system in this State, meeting
15 goals to limit carbon dioxide emissions under federal or
16 State law, and contributing to a cleaner and healthier
17 environment for the citizens of this State. In order to
18 further these legislative purposes, renewable energy
19 credits shall be eligible to be counted toward the
20 renewable energy requirements of this subsection (c) if
21 they are generated from facilities located in this State.
22 The Agency may qualify renewable energy credits from
23 facilities located in states adjacent to Illinois or
24 renewable energy credits associated with the electricity
25 generated by a utility-scale wind energy facility or
26 utility-scale photovoltaic facility and transmitted by a
HB1700 Enrolled - 150 - LRB104 08228 SPS 18278 b
1 qualifying direct current project described in subsection
2 (b-5) of Section 8-406 of the Public Utilities Act to a
3 delivery point on the electric transmission grid located
4 in this State or a state adjacent to Illinois, if the
5 generator demonstrates and the Agency determines that the
6 operation of such facility or facilities will help promote
7 the State's interest in the health, safety, and welfare of
8 its residents based on the public interest criteria
9 described above. For the purposes of this Section,
10 renewable resources that are delivered via a high voltage
11 direct current converter station located in Illinois shall
12 be deemed generated in Illinois at the time and location
13 the energy is converted to alternating current by the high
14 voltage direct current converter station if the high
15 voltage direct current transmission line: (i) after the
16 effective date of this amendatory Act of the 102nd General
17 Assembly, was constructed with a project labor agreement;
18 (ii) is capable of transmitting electricity at 525kv;
19 (iii) has an Illinois converter station located and
20 interconnected in the region of the PJM Interconnection,
21 LLC; (iv) does not operate as a public utility; and (v) if
22 the high voltage direct current transmission line was
23 energized after June 1, 2023. To ensure that the public
24 interest criteria are applied to the procurement and given
25 full effect, the Agency's long-term procurement plan shall
26 describe in detail how each public interest factor shall
HB1700 Enrolled - 151 - LRB104 08228 SPS 18278 b
1 be considered and weighted for facilities located in
2 states adjacent to Illinois.
3 (J) In order to promote the competitive development of
4 renewable energy resources in furtherance of the State's
5 interest in the health, safety, and welfare of its
6 residents, renewable energy credits shall not be eligible
7 to be counted toward the renewable energy requirements of
8 this subsection (c) if they are sourced from a generating
9 unit whose costs were being recovered through rates
10 regulated by this State or any other state or states on or
11 after January 1, 2017. Each contract executed to purchase
12 renewable energy credits under this subsection (c) shall
13 provide for the contract's termination if the costs of the
14 generating unit supplying the renewable energy credits
15 subsequently begin to be recovered through rates regulated
16 by this State or any other state or states; and each
17 contract shall further provide that, in that event, the
18 supplier of the credits must return 110% of all payments
19 received under the contract. Amounts returned under the
20 requirements of this subparagraph (J) shall be retained by
21 the utility and all of these amounts shall be used for the
22 procurement of additional renewable energy credits from
23 new wind or new photovoltaic resources as defined in this
24 subsection (c). The long-term plan shall provide that
25 these renewable energy credits shall be procured in the
26 next procurement event.
HB1700 Enrolled - 152 - LRB104 08228 SPS 18278 b
1 Notwithstanding the limitations of this subparagraph
2 (J), renewable energy credits sourced from generating
3 units that are constructed, purchased, owned, or leased by
4 an electric utility as part of an approved project,
5 program, or pilot under Section 1-56 of this Act shall be
6 eligible to be counted toward the renewable energy
7 requirements of this subsection (c), regardless of how the
8 costs of these units are recovered. As long as a
9 generating unit or an identifiable portion of a generating
10 unit has not had and does not have its costs recovered
11 through rates regulated by this State or any other state,
12 HVDC renewable energy credits associated with that
13 generating unit or identifiable portion thereof shall be
14 eligible to be counted toward the renewable energy
15 requirements of this subsection (c).
16 (K) The long-term renewable resources procurement plan
17 developed by the Agency in accordance with subparagraph
18 (A) of this paragraph (1) shall include an Adjustable
19 Block program for the procurement of renewable energy
20 credits from new photovoltaic projects that are
21 distributed renewable energy generation devices or new
22 photovoltaic community renewable generation projects. The
23 Adjustable Block program shall be generally designed to
24 provide for the steady, predictable, and sustainable
25 growth of new solar photovoltaic development in Illinois.
26 To this end, the Adjustable Block program shall provide a
HB1700 Enrolled - 153 - LRB104 08228 SPS 18278 b
1 transparent annual schedule of prices and quantities to
2 enable the photovoltaic market to scale up and for
3 renewable energy credit prices to adjust at a predictable
4 rate over time. The prices set by the Adjustable Block
5 program can be reflected as a set value or as the product
6 of a formula.
7 The Adjustable Block program shall include for each
8 category of eligible projects for each delivery year: a
9 single block of nameplate capacity, a price for renewable
10 energy credits within that block, and the terms and
11 conditions for securing a spot on a waitlist once the
12 block is fully committed or reserved. Except as outlined
13 below, the waitlist of projects in a given year will carry
14 over to apply to the subsequent year when another block is
15 opened. Only projects energized on or after June 1, 2017
16 shall be eligible for the Adjustable Block program. For
17 each category for each delivery year the Agency shall
18 determine the amount of generation capacity in each block,
19 and the purchase price for each block, provided that the
20 purchase price provided and the total amount of generation
21 in all blocks for all categories shall be sufficient to
22 meet the goals in this subsection (c). The Agency shall
23 strive to issue a single block sized to provide for
24 stability and market growth. The Agency shall establish
25 program eligibility requirements that ensure that projects
26 that enter the program are sufficiently mature to indicate
HB1700 Enrolled - 154 - LRB104 08228 SPS 18278 b
1 a demonstrable path to completion. The Agency may
2 periodically review its prior decisions establishing the
3 amount of generation capacity in each block, and the
4 purchase price for each block, and may propose, on an
5 expedited basis, changes to these previously set values,
6 including but not limited to redistributing these amounts
7 and the available funds as necessary and appropriate,
8 subject to Commission approval as part of the periodic
9 plan revision process described in Section 16-111.5 of the
10 Public Utilities Act. The Agency may define different
11 block sizes, purchase prices, or other distinct terms and
12 conditions for projects located in different utility
13 service territories if the Agency deems it necessary to
14 meet the goals in this subsection (c).
15 The Adjustable Block program shall include the
16 following categories in at least the following amounts:
17 (i) At least 20% from distributed renewable energy
18 generation devices with a nameplate capacity of no
19 more than 25 kilowatts.
20 (ii) At least 20% from distributed renewable
21 energy generation devices with a nameplate capacity of
22 more than 25 kilowatts and no more than 5,000
23 kilowatts. The Agency may create sub-categories within
24 this category to account for the differences between
25 projects for small commercial customers, large
26 commercial customers, and public or non-profit
HB1700 Enrolled - 155 - LRB104 08228 SPS 18278 b
1 customers.
2 (iii) At least 30% from photovoltaic community
3 renewable generation projects. Capacity for this
4 category for the first 2 delivery years after the
5 effective date of this amendatory Act of the 102nd
6 General Assembly shall be allocated to waitlist
7 projects as provided in paragraph (3) of item (iv) of
8 subparagraph (G). Starting in the third delivery year
9 after the effective date of this amendatory Act of the
10 102nd General Assembly or earlier if the Agency
11 determines there is additional capacity needed for to
12 meet previous delivery year requirements, the
13 following shall apply:
14 (1) the Agency shall select projects on a
15 first-come, first-serve basis, however the Agency
16 may suggest additional methods to prioritize
17 projects that are submitted at the same time;
18 (2) projects shall have subscriptions of 25 kW
19 or less for at least 50% of the facility's
20 nameplate capacity and the Agency shall price the
21 renewable energy credits with that as a factor;
22 (3) projects shall not be colocated with one
23 or more other community renewable generation
24 projects, as defined in the Agency's first revised
25 long-term renewable resources procurement plan
26 approved by the Commission on February 18, 2020,
HB1700 Enrolled - 156 - LRB104 08228 SPS 18278 b
1 such that the aggregate nameplate capacity exceeds
2 5,000 kilowatts; and
3 (4) projects greater than 2 MW may not apply
4 until after the approval of the Agency's revised
5 Long-Term Renewable Resources Procurement Plan
6 after the effective date of this amendatory Act of
7 the 102nd General Assembly.
8 (iv) At least 15% from distributed renewable
9 generation devices or photovoltaic community renewable
10 generation projects installed on public school land.
11 The Agency may create subcategories within this
12 category to account for the differences between
13 project size or location. Projects located within
14 environmental justice communities or within
15 Organizational Units that fall within Tier 1 or Tier 2
16 shall be given priority. Each of the Agency's periodic
17 updates to its long-term renewable resources
18 procurement plan to incorporate the procurement
19 described in this subparagraph (iv) shall also include
20 the proposed quantities or blocks, pricing, and
21 contract terms applicable to the procurement as
22 indicated herein. In each such update and procurement,
23 the Agency shall set the renewable energy credit price
24 and establish payment terms for the renewable energy
25 credits procured pursuant to this subparagraph (iv)
26 that make it feasible and affordable for public
HB1700 Enrolled - 157 - LRB104 08228 SPS 18278 b
1 schools to install photovoltaic distributed renewable
2 energy devices on their premises, including, but not
3 limited to, those public schools subject to the
4 prioritization provisions of this subparagraph. For
5 the purposes of this item (iv):
6 "Environmental Justice Community" shall have the
7 same meaning set forth in the Agency's long-term
8 renewable resources procurement plan;
9 "Organization Unit", "Tier 1" and "Tier 2" shall
10 have the meanings set for in Section 18-8.15 of the
11 School Code;
12 "Public schools" shall have the meaning set forth
13 in Section 1-3 of the School Code and includes public
14 institutions of higher education, as defined in the
15 Board of Higher Education Act.
16 (v) At least 5% from community-driven community
17 solar projects intended to provide more direct and
18 tangible connection and benefits to the communities
19 which they serve or in which they operate and,
20 additionally, to increase the variety of community
21 solar locations, models, and options in Illinois. As
22 part of its long-term renewable resources procurement
23 plan, the Agency shall develop selection criteria for
24 projects participating in this category. Nothing in
25 this Section shall preclude the Agency from creating a
26 selection process that maximizes community ownership
HB1700 Enrolled - 158 - LRB104 08228 SPS 18278 b
1 and community benefits in selecting projects to
2 receive renewable energy credits. Selection criteria
3 shall include:
4 (1) community ownership or community
5 wealth-building;
6 (2) additional direct and indirect community
7 benefit, beyond project participation as a
8 subscriber, including, but not limited to,
9 economic, environmental, social, cultural, and
10 physical benefits;
11 (3) meaningful involvement in project
12 organization and development by community members
13 or nonprofit organizations or public entities
14 located in or serving the community;
15 (4) engagement in project operations and
16 management by nonprofit organizations, public
17 entities, or community members; and
18 (5) whether a project is developed in response
19 to a site-specific RFP developed by community
20 members or a nonprofit organization or public
21 entity located in or serving the community.
22 Selection criteria may also prioritize projects
23 that:
24 (1) are developed in collaboration with or to
25 provide complementary opportunities for the Clean
26 Jobs Workforce Network Program, the Illinois
HB1700 Enrolled - 159 - LRB104 08228 SPS 18278 b
1 Climate Works Preapprenticeship Program, the
2 Returning Residents Clean Jobs Training Program,
3 the Clean Energy Contractor Incubator Program, or
4 the Clean Energy Primes Contractor Accelerator
5 Program;
6 (2) increase the diversity of locations of
7 community solar projects in Illinois, including by
8 locating in urban areas and population centers;
9 (3) are located in Equity Investment Eligible
10 Communities;
11 (4) are not greenfield projects;
12 (5) serve only local subscribers;
13 (6) have a nameplate capacity that does not
14 exceed 500 kW;
15 (7) are developed by an equity eligible
16 contractor; or
17 (8) otherwise meaningfully advance the goals
18 of providing more direct and tangible connection
19 and benefits to the communities which they serve
20 or in which they operate and increasing the
21 variety of community solar locations, models, and
22 options in Illinois.
23 For the purposes of this item (v):
24 "Community" means a social unit in which people
25 come together regularly to effect change; a social
26 unit in which participants are marked by a cooperative
HB1700 Enrolled - 160 - LRB104 08228 SPS 18278 b
1 spirit, a common purpose, or shared interests or
2 characteristics; or a space understood by its
3 residents to be delineated through geographic
4 boundaries or landmarks.
5 "Community benefit" means a range of services and
6 activities that provide affirmative, economic,
7 environmental, social, cultural, or physical value to
8 a community; or a mechanism that enables economic
9 development, high-quality employment, and education
10 opportunities for local workers and residents, or
11 formal monitoring and oversight structures such that
12 community members may ensure that those services and
13 activities respond to local knowledge and needs.
14 "Community ownership" means an arrangement in
15 which an electric generating facility is, or over time
16 will be, in significant part, owned collectively by
17 members of the community to which an electric
18 generating facility provides benefits; members of that
19 community participate in decisions regarding the
20 governance, operation, maintenance, and upgrades of
21 and to that facility; and members of that community
22 benefit from regular use of that facility.
23 Terms and guidance within these criteria that are
24 not defined in this item (v) shall be defined by the
25 Agency, with stakeholder input, during the development
26 of the Agency's long-term renewable resources
HB1700 Enrolled - 161 - LRB104 08228 SPS 18278 b
1 procurement plan. The Agency shall develop regular
2 opportunities for projects to submit applications for
3 projects under this category, and develop selection
4 criteria that gives preference to projects that better
5 meet individual criteria as well as projects that
6 address a higher number of criteria.
7 (vi) At least 10% from distributed renewable
8 energy generation devices, which includes distributed
9 renewable energy devices with a nameplate capacity
10 under 5,000 kilowatts or photovoltaic community
11 renewable generation projects, from applicants that
12 are equity eligible contractors. The Agency may create
13 subcategories within this category to account for the
14 differences between project size and type. The Agency
15 shall propose to increase the percentage in this item
16 (vi) over time to 40% based on factors, including, but
17 not limited to, the number of equity eligible
18 contractors and capacity used in this item (vi) in
19 previous delivery years.
20 The Agency shall propose a payment structure for
21 contracts executed pursuant to this paragraph under
22 which, upon a demonstration of qualification or need,
23 applicant firms are advanced capital disbursed after
24 contract execution but before the contracted project's
25 energization. The amount or percentage of capital
26 advanced prior to project energization shall be
HB1700 Enrolled - 162 - LRB104 08228 SPS 18278 b
1 sufficient to both cover any increase in development
2 costs resulting from prevailing wage requirements or
3 project-labor agreements, and designed to overcome
4 barriers in access to capital faced by equity eligible
5 contractors. The amount or percentage of advanced
6 capital may vary by subcategory within this category
7 and by an applicant's demonstration of need, with such
8 levels to be established through the Long-Term
9 Renewable Resources Procurement Plan authorized under
10 subparagraph (A) of paragraph (1) of subsection (c) of
11 this Section.
12 Contracts developed featuring capital advanced
13 prior to a project's energization shall feature
14 provisions to ensure both the successful development
15 of applicant projects and the delivery of the
16 renewable energy credits for the full term of the
17 contract, including ongoing collateral requirements
18 and other provisions deemed necessary by the Agency,
19 and may include energization timelines longer than for
20 comparable project types. The percentage or amount of
21 capital advanced prior to project energization shall
22 not operate to increase the overall contract value,
23 however contracts executed under this subparagraph may
24 feature renewable energy credit prices higher than
25 those offered to similar projects participating in
26 other categories. Capital advanced prior to
HB1700 Enrolled - 163 - LRB104 08228 SPS 18278 b
1 energization shall serve to reduce the ratable
2 payments made after energization under items (ii) and
3 (iii) of subparagraph (L) or payments made for each
4 renewable energy credit delivery under item (iv) of
5 subparagraph (L).
6 (vii) The remaining capacity shall be allocated by
7 the Agency in order to respond to market demand. The
8 Agency shall allocate any discretionary capacity prior
9 to the beginning of each delivery year.
10 To the extent there is uncontracted capacity from any
11 block in any of categories (i) through (vi) at the end of a
12 delivery year, the Agency shall redistribute that capacity
13 to one or more other categories giving priority to
14 categories with projects on a waitlist. The redistributed
15 capacity shall be added to the annual capacity in the
16 subsequent delivery year, and the price for renewable
17 energy credits shall be the price for the new delivery
18 year. Redistributed capacity shall not be considered
19 redistributed when determining whether the goals in this
20 subsection (K) have been met.
21 Notwithstanding anything to the contrary, as the
22 Agency increases the capacity in item (vi) to 40% over
23 time, the Agency may reduce the capacity of items (i)
24 through (v) proportionate to the capacity of the
25 categories of projects in item (vi), to achieve a balance
26 of project types.
HB1700 Enrolled - 164 - LRB104 08228 SPS 18278 b
1 The Adjustable Block program shall be designed to
2 ensure that renewable energy credits are procured from
3 projects in diverse locations and are not concentrated in
4 a few regional areas.
5 (L) Notwithstanding provisions for advancing capital
6 prior to project energization found in item (vi) of
7 subparagraph (K), the procurement of photovoltaic
8 renewable energy credits under items (i) through (vi) of
9 subparagraph (K) of this paragraph (1) shall otherwise be
10 subject to the following contract and payment terms:
11 (i) (Blank).
12 (ii) For those renewable energy credits that
13 qualify and are procured under item (i) of
14 subparagraph (K) of this paragraph (1), and any
15 similar category projects that are procured under item
16 (vi) of subparagraph (K) of this paragraph (1) that
17 qualify and are procured under item (vi), the contract
18 length shall be 15 years. The renewable energy credit
19 delivery contract value shall be paid in full, based
20 on the estimated generation during the first 15 years
21 of operation, by the contracting utilities at the time
22 that the facility producing the renewable energy
23 credits is interconnected at the distribution system
24 level of the utility and verified as energized and
25 compliant by the Program Administrator. The electric
26 utility shall receive and retire all renewable energy
HB1700 Enrolled - 165 - LRB104 08228 SPS 18278 b
1 credits generated by the project for the first 15
2 years of operation. Renewable energy credits generated
3 by the project thereafter shall not be transferred
4 under the renewable energy credit delivery contract
5 with the counterparty electric utility.
6 (iii) For those renewable energy credits that
7 qualify and are procured under item (ii) and (v) of
8 subparagraph (K) of this paragraph (1) and any like
9 projects similar category that qualify and are
10 procured under item (vi), the contract length shall be
11 15 years. 15% of the renewable energy credit delivery
12 contract value, based on the estimated generation
13 during the first 15 years of operation, shall be paid
14 by the contracting utilities at the time that the
15 facility producing the renewable energy credits is
16 interconnected at the distribution system level of the
17 utility and verified as energized and compliant by the
18 Program Administrator. The remaining portion shall be
19 paid ratably over the subsequent 6-year period. The
20 electric utility shall receive and retire all
21 renewable energy credits generated by the project for
22 the first 15 years of operation. Renewable energy
23 credits generated by the project thereafter shall not
24 be transferred under the renewable energy credit
25 delivery contract with the counterparty electric
26 utility.
HB1700 Enrolled - 166 - LRB104 08228 SPS 18278 b
1 (iv) For those renewable energy credits that
2 qualify and are procured under items (iii) and (iv) of
3 subparagraph (K) of this paragraph (1), and any like
4 projects that qualify and are procured under item
5 (vi), the renewable energy credit delivery contract
6 length shall be 20 years and shall be paid over the
7 delivery term, not to exceed during each delivery year
8 the contract price multiplied by the estimated annual
9 renewable energy credit generation amount. If
10 generation of renewable energy credits during a
11 delivery year exceeds the estimated annual generation
12 amount, the excess renewable energy credits shall be
13 carried forward to future delivery years and shall not
14 expire during the delivery term. If generation of
15 renewable energy credits during a delivery year,
16 including carried forward excess renewable energy
17 credits, if any, is less than the estimated annual
18 generation amount, payments during such delivery year
19 will not exceed the quantity generated plus the
20 quantity carried forward multiplied by the contract
21 price. The electric utility shall receive all
22 renewable energy credits generated by the project
23 during the first 20 years of operation and retire all
24 renewable energy credits paid for under this item (iv)
25 and return at the end of the delivery term all
26 renewable energy credits that were not paid for.
HB1700 Enrolled - 167 - LRB104 08228 SPS 18278 b
1 Renewable energy credits generated by the project
2 thereafter shall not be transferred under the
3 renewable energy credit delivery contract with the
4 counterparty electric utility. Notwithstanding the
5 preceding, for those projects participating under item
6 (iii) of subparagraph (K), the contract price for a
7 delivery year shall be based on subscription levels as
8 measured on the higher of the first business day of the
9 delivery year or the first business day 6 months after
10 the first business day of the delivery year.
11 Subscription of 90% of nameplate capacity or greater
12 shall be deemed to be fully subscribed for the
13 purposes of this item (iv). For projects receiving a
14 20-year delivery contract, REC prices shall be
15 adjusted downward for consistency with the incentive
16 levels previously determined to be necessary to
17 support projects under 15-year delivery contracts,
18 taking into consideration any additional new
19 requirements placed on the projects, including, but
20 not limited to, labor standards.
21 (v) Each contract shall include provisions to
22 ensure the delivery of the estimated quantity of
23 renewable energy credits and ongoing collateral
24 requirements and other provisions deemed appropriate
25 by the Agency.
26 (vi) The utility shall be the counterparty to the
HB1700 Enrolled - 168 - LRB104 08228 SPS 18278 b
1 contracts executed under this subparagraph (L) that
2 are approved by the Commission under the process
3 described in Section 16-111.5 of the Public Utilities
4 Act. No contract shall be executed for an amount that
5 is less than one renewable energy credit per year.
6 (vii) If, at any time, approved applications for
7 the Adjustable Block program exceed funds collected by
8 the electric utility or would cause the Agency to
9 exceed the limitation described in subparagraph (E) of
10 this paragraph (1) on the amount of renewable energy
11 resources that may be procured, then the Agency may
12 consider future uncommitted funds to be reserved for
13 these contracts on a first-come, first-served basis.
14 (viii) Nothing in this Section shall require the
15 utility to advance any payment or pay any amounts that
16 exceed the actual amount of revenues anticipated to be
17 collected by the utility under paragraph (6) of this
18 subsection (c) and subsection (k) of Section 16-108 of
19 the Public Utilities Act inclusive of eligible funds
20 collected in prior years and alternative compliance
21 payments for use by the utility.
22 (ix) Notwithstanding other requirements of this
23 subparagraph (L), no modification shall be required to
24 Adjustable Block program contracts if they were
25 already executed prior to the establishment, approval,
26 and implementation of new contract forms as a result
HB1700 Enrolled - 169 - LRB104 08228 SPS 18278 b
1 of this amendatory Act of the 102nd General Assembly.
2 (x) Contracts may be assignable, but only to
3 entities first deemed by the Agency to have met
4 program terms and requirements applicable to direct
5 program participation. In developing contracts for the
6 delivery of renewable energy credits, the Agency shall
7 be permitted to establish fees applicable to each
8 contract assignment.
9 (M) The Agency shall be authorized to retain one or
10 more experts or expert consulting firms to develop,
11 administer, implement, operate, and evaluate the
12 Adjustable Block program described in subparagraph (K) of
13 this paragraph (1), and the Agency shall retain the
14 consultant or consultants in the same manner, to the
15 extent practicable, as the Agency retains others to
16 administer provisions of this Act, including, but not
17 limited to, the procurement administrator. The selection
18 of experts and expert consulting firms and the procurement
19 process described in this subparagraph (M) are exempt from
20 the requirements of Section 20-10 of the Illinois
21 Procurement Code, under Section 20-10 of that Code. The
22 Agency shall strive to minimize administrative expenses in
23 the implementation of the Adjustable Block program.
24 The Program Administrator may charge application fees
25 to participating firms to cover the cost of program
26 administration. Any application fee amounts shall
HB1700 Enrolled - 170 - LRB104 08228 SPS 18278 b
1 initially be determined through the long-term renewable
2 resources procurement plan, and modifications to any
3 application fee that deviate more than 25% from the
4 Commission's approved value must be approved by the
5 Commission as a long-term plan revision under Section
6 16-111.5 of the Public Utilities Act. The Agency shall
7 consider stakeholder feedback when making adjustments to
8 application fees and shall notify stakeholders in advance
9 of any planned changes.
10 In addition to covering the costs of program
11 administration, the Agency, in conjunction with its
12 Program Administrator, may also use the proceeds of such
13 fees charged to participating firms to support public
14 education and ongoing regional and national coordination
15 with nonprofit organizations, public bodies, and others
16 engaged in the implementation of renewable energy
17 incentive programs or similar initiatives. This work may
18 include developing papers and reports, hosting regional
19 and national conferences, and other work deemed necessary
20 by the Agency to position the State of Illinois as a
21 national leader in renewable energy incentive program
22 development and administration.
23 The Agency and its consultant or consultants shall
24 monitor block activity, share program activity with
25 stakeholders and conduct quarterly meetings to discuss
26 program activity and market conditions. If necessary, the
HB1700 Enrolled - 171 - LRB104 08228 SPS 18278 b
1 Agency may make prospective administrative adjustments to
2 the Adjustable Block program design, such as making
3 adjustments to purchase prices as necessary to achieve the
4 goals of this subsection (c). Program modifications to any
5 block price that do not deviate from the Commission's
6 approved value by more than 10% shall take effect
7 immediately and are not subject to Commission review and
8 approval. Program modifications to any block price that
9 deviate more than 10% from the Commission's approved value
10 must be approved by the Commission as a long-term plan
11 amendment under Section 16-111.5 of the Public Utilities
12 Act. The Agency shall consider stakeholder feedback when
13 making adjustments to the Adjustable Block design and
14 shall notify stakeholders in advance of any planned
15 changes.
16 The Agency and its program administrators for both the
17 Adjustable Block program and the Illinois Solar for All
18 Program, consistent with the requirements of this
19 subsection (c) and subsection (b) of Section 1-56 of this
20 Act, shall propose the Adjustable Block program terms,
21 conditions, and requirements, including the prices to be
22 paid for renewable energy credits, where applicable, and
23 requirements applicable to participating entities and
24 project applications, through the development, review, and
25 approval of the Agency's long-term renewable resources
26 procurement plan described in this subsection (c) and
HB1700 Enrolled - 172 - LRB104 08228 SPS 18278 b
1 paragraph (5) of subsection (b) of Section 16-111.5 of the
2 Public Utilities Act. Terms, conditions, and requirements
3 for program participation shall include the following:
4 (i) The Agency shall establish a registration
5 process for entities seeking to qualify for
6 program-administered incentive funding and establish
7 baseline qualifications for vendor approval. The
8 Agency must maintain a list of approved entities on
9 each program's website, and may revoke a vendor's
10 ability to receive program-administered incentive
11 funding status upon a determination that the vendor
12 failed to comply with contract terms, the law, or
13 other program requirements.
14 (ii) The Agency shall establish program
15 requirements and minimum contract terms to ensure
16 projects are properly installed and produce their
17 expected amounts of energy. Program requirements may
18 include on-site inspections and photo documentation of
19 projects under construction. The Agency may require
20 repairs, alterations, or additions to remedy any
21 material deficiencies discovered. Vendors who have a
22 disproportionately high number of deficient systems
23 may lose their eligibility to continue to receive
24 State-administered incentive funding through Agency
25 programs and procurements.
26 (iii) To discourage deceptive marketing or other
HB1700 Enrolled - 173 - LRB104 08228 SPS 18278 b
1 bad faith business practices, the Agency may require
2 direct program participants, including agents
3 operating on their behalf, to provide standardized
4 disclosures to a customer prior to that customer's
5 execution of a contract for the development of a
6 distributed generation system or a subscription to a
7 community solar project.
8 (iv) The Agency shall establish one or multiple
9 Consumer Complaints Centers to accept complaints
10 regarding businesses that participate in, or otherwise
11 benefit from, State-administered incentive funding
12 through Agency-administered programs. The Agency shall
13 maintain a public database of complaints with any
14 confidential or particularly sensitive information
15 redacted from public entries.
16 (v) Through a filing in the proceeding for the
17 approval of its long-term renewable energy resources
18 procurement plan, the Agency shall provide an annual
19 written report to the Illinois Commerce Commission
20 documenting the frequency and nature of complaints and
21 any enforcement actions taken in response to those
22 complaints.
23 (vi) The Agency shall schedule regular meetings
24 with representatives of the Office of the Attorney
25 General, the Illinois Commerce Commission, consumer
26 protection groups, and other interested stakeholders
HB1700 Enrolled - 174 - LRB104 08228 SPS 18278 b
1 to share relevant information about consumer
2 protection, project compliance, and complaints
3 received.
4 (vii) To the extent that complaints received
5 implicate the jurisdiction of the Office of the
6 Attorney General, the Illinois Commerce Commission, or
7 local, State, or federal law enforcement, the Agency
8 shall also refer complaints to those entities as
9 appropriate.
10 (N) The Agency shall establish the terms, conditions,
11 and program requirements for photovoltaic community
12 renewable generation projects with a goal to expand access
13 to a broader group of energy consumers, to ensure robust
14 participation opportunities for residential and small
15 commercial customers and those who cannot install
16 renewable energy on their own properties. Subject to
17 reasonable limitations, any plan approved by the
18 Commission shall allow subscriptions to community
19 renewable generation projects to be portable and
20 transferable. For purposes of this subparagraph (N),
21 "portable" means that subscriptions may be retained by the
22 subscriber even if the subscriber relocates or changes its
23 address within the same utility service territory; and
24 "transferable" means that a subscriber may assign or sell
25 subscriptions to another person within the same utility
26 service territory.
HB1700 Enrolled - 175 - LRB104 08228 SPS 18278 b
1 Through the development of its long-term renewable
2 resources procurement plan, the Agency may consider
3 whether community renewable generation projects utilizing
4 technologies other than photovoltaics should be supported
5 through State-administered incentive funding, and may
6 issue requests for information to gauge market demand.
7 Electric utilities shall provide a monetary credit to
8 a subscriber's subsequent bill for service for the
9 proportional output of a community renewable generation
10 project attributable to that subscriber as specified in
11 Section 16-107.5 of the Public Utilities Act.
12 The Agency shall purchase renewable energy credits
13 from subscribed shares of photovoltaic community renewable
14 generation projects through the Adjustable Block program
15 described in subparagraph (K) of this paragraph (1) or
16 through the Illinois Solar for All Program described in
17 Section 1-56 of this Act. The electric utility shall
18 purchase any unsubscribed energy from community renewable
19 generation projects that are Qualifying Facilities ("QF")
20 under the electric utility's tariff for purchasing the
21 output from QFs under Public Utilities Regulatory Policies
22 Act of 1978.
23 The owners of and any subscribers to a community
24 renewable generation project shall not be considered
25 public utilities or alternative retail electricity
26 suppliers under the Public Utilities Act solely as a
HB1700 Enrolled - 176 - LRB104 08228 SPS 18278 b
1 result of their interest in or subscription to a community
2 renewable generation project and shall not be required to
3 become an alternative retail electric supplier by
4 participating in a community renewable generation project
5 with a public utility.
6 (O) For the delivery year beginning June 1, 2018, the
7 long-term renewable resources procurement plan required by
8 this subsection (c) shall provide for the Agency to
9 procure contracts to continue offering the Illinois Solar
10 for All Program described in subsection (b) of Section
11 1-56 of this Act, and the contracts approved by the
12 Commission shall be executed by the utilities that are
13 subject to this subsection (c). The long-term renewable
14 resources procurement plan shall allocate up to
15 $50,000,000 per delivery year to fund the programs, and
16 the plan shall determine the amount of funding to be
17 apportioned to the programs identified in subsection (b)
18 of Section 1-56 of this Act; provided that for the
19 delivery years beginning June 1, 2021, June 1, 2022, and
20 June 1, 2023, the long-term renewable resources
21 procurement plan may average the annual budgets over a
22 3-year period to account for program ramp-up. For the
23 delivery years beginning June 1, 2021, June 1, 2024, June
24 1, 2027, and June 1, 2030 and additional $10,000,000 shall
25 be provided to the Department of Commerce and Economic
26 Opportunity to implement the workforce development
HB1700 Enrolled - 177 - LRB104 08228 SPS 18278 b
1 programs and reporting as outlined in Section 16-108.12 of
2 the Public Utilities Act. In making the determinations
3 required under this subparagraph (O), the Commission shall
4 consider the experience and performance under the programs
5 and any evaluation reports. The Commission shall also
6 provide for an independent evaluation of those programs on
7 a periodic basis that are funded under this subparagraph
8 (O).
9 (P) All programs and procurements under this
10 subsection (c) shall be designed to encourage
11 participating projects to use a diverse and equitable
12 workforce and a diverse set of contractors, including
13 minority-owned businesses, disadvantaged businesses,
14 trade unions, graduates of any workforce training programs
15 administered under this Act, and small businesses.
16 The Agency shall develop a method to optimize
17 procurement of renewable energy credits from proposed
18 utility-scale projects that are located in communities
19 eligible to receive Energy Transition Community Grants
20 pursuant to Section 10-20 of the Energy Community
21 Reinvestment Act. If this requirement conflicts with other
22 provisions of law or the Agency determines that full
23 compliance with the requirements of this subparagraph (P)
24 would be unreasonably costly or administratively
25 impractical, the Agency is to propose alternative
26 approaches to achieve development of renewable energy
HB1700 Enrolled - 178 - LRB104 08228 SPS 18278 b
1 resources in communities eligible to receive Energy
2 Transition Community Grants pursuant to Section 10-20 of
3 the Energy Community Reinvestment Act or seek an exemption
4 from this requirement from the Commission.
5 (Q) Each facility listed in subitems (i) through (ix)
6 of item (1) of this subparagraph (Q) for which a renewable
7 energy credit delivery contract is signed after the
8 effective date of this amendatory Act of the 102nd General
9 Assembly is subject to the following requirements through
10 the Agency's long-term renewable resources procurement
11 plan:
12 (1) Each facility shall be subject to the
13 prevailing wage requirements included in the
14 Prevailing Wage Act. The Agency shall require
15 verification that all construction performed on the
16 facility by the renewable energy credit delivery
17 contract holder, its contractors, or its
18 subcontractors relating to construction of the
19 facility is performed by construction employees
20 receiving an amount for that work equal to or greater
21 than the general prevailing rate, as that term is
22 defined in Section 3 of the Prevailing Wage Act. For
23 purposes of this item (1), "house of worship" means
24 property that is both (1) used exclusively by a
25 religious society or body of persons as a place for
26 religious exercise or religious worship and (2)
HB1700 Enrolled - 179 - LRB104 08228 SPS 18278 b
1 recognized as exempt from taxation pursuant to Section
2 15-40 of the Property Tax Code. This item (1) shall
3 apply to any the following:
4 (i) all new utility-scale wind projects;
5 (ii) all new utility-scale photovoltaic
6 projects and repowered wind projects;
7 (iii) all new brownfield photovoltaic
8 projects;
9 (iv) all new photovoltaic community renewable
10 energy facilities that qualify for item (iii) of
11 subparagraph (K) of this paragraph (1);
12 (v) all new community driven community
13 photovoltaic projects that qualify for item (v) of
14 subparagraph (K) of this paragraph (1);
15 (vi) all new photovoltaic projects on public
16 school land that qualify for item (iv) of
17 subparagraph (K) of this paragraph (1);
18 (vii) all new photovoltaic distributed
19 renewable energy generation devices that (1)
20 qualify for item (i) of subparagraph (K) of this
21 paragraph (1); (2) are not projects that serve
22 single-family or multi-family residential
23 buildings; and (3) are not houses of worship where
24 the aggregate capacity including collocated
25 projects would not exceed 100 kilowatts;
26 (viii) all new photovoltaic distributed
HB1700 Enrolled - 180 - LRB104 08228 SPS 18278 b
1 renewable energy generation devices that (1)
2 qualify for item (ii) of subparagraph (K) of this
3 paragraph (1); (2) are not projects that serve
4 single-family or multi-family residential
5 buildings; and (3) are not houses of worship where
6 the aggregate capacity including collocated
7 projects would not exceed 100 kilowatts;
8 (ix) all new, modernized, or retooled
9 hydropower facilities.
10 (2) Renewable energy credits procured from new
11 utility-scale wind projects, new utility-scale solar
12 projects, new brownfield solar projects, repowered
13 wind projects, and retooled hydropower facilities
14 pursuant to Agency procurement events occurring after
15 the effective date of this amendatory Act of the 102nd
16 General Assembly must be from facilities built by
17 general contractors that must enter into a project
18 labor agreement, as defined by this Act, prior to
19 construction. The project labor agreement shall be
20 filed with the Director in accordance with procedures
21 established by the Agency through its long-term
22 renewable resources procurement plan. Any information
23 submitted to the Agency in this item (2) shall be
24 considered commercially sensitive information. At a
25 minimum, the project labor agreement must provide the
26 names, addresses, and occupations of the owner of the
HB1700 Enrolled - 181 - LRB104 08228 SPS 18278 b
1 plant and the individuals representing the labor
2 organization employees participating in the project
3 labor agreement consistent with the Project Labor
4 Agreements Act. The agreement must also specify the
5 terms and conditions as defined by this Act.
6 (3) It is the intent of this Section to ensure that
7 economic development occurs across Illinois
8 communities, that emerging businesses may grow, and
9 that there is improved access to the clean energy
10 economy by persons who have greater economic burdens
11 to success. The Agency shall take into consideration
12 the unique cost of compliance of this subparagraph (Q)
13 that might be borne by equity eligible contractors,
14 shall include such costs when determining the price of
15 renewable energy credits in the Adjustable Block
16 program, and shall take such costs into consideration
17 in a nondiscriminatory manner when comparing bids for
18 competitive procurements. The Agency shall consider
19 costs associated with compliance whether in the
20 development, financing, or construction of projects.
21 The Agency shall periodically review the assumptions
22 in these costs and may adjust prices, in compliance
23 with subparagraph (M) of this paragraph (1).
24 (R) In its long-term renewable resources procurement
25 plan, the Agency shall establish a self-direct renewable
26 portfolio standard compliance program for eligible
HB1700 Enrolled - 182 - LRB104 08228 SPS 18278 b
1 self-direct customers that purchase renewable energy
2 credits from utility-scale wind and solar projects through
3 long-term agreements for purchase of renewable energy
4 credits as described in this Section. Such long-term
5 agreements may include the purchase of energy or other
6 products on a physical or financial basis and may involve
7 an alternative retail electric supplier as defined in
8 Section 16-102 of the Public Utilities Act. This program
9 shall take effect in the delivery year commencing June 1,
10 2023.
11 (1) For the purposes of this subparagraph:
12 "Eligible self-direct customer" means any retail
13 customers of an electric utility that serves 3,000,000
14 or more retail customers in the State and whose total
15 highest 30-minute demand was more than 10,000
16 kilowatts, or any retail customers of an electric
17 utility that serves less than 3,000,000 retail
18 customers but more than 500,000 retail customers in
19 the State and whose total highest 15-minute demand was
20 more than 10,000 kilowatts.
21 "Retail customer" has the meaning set forth in
22 Section 16-102 of the Public Utilities Act and
23 multiple retail customer accounts under the same
24 corporate parent may aggregate their account demands
25 to meet the 10,000 kilowatt threshold. The criteria
26 for determining whether this subparagraph is
HB1700 Enrolled - 183 - LRB104 08228 SPS 18278 b
1 applicable to a retail customer shall be based on the
2 12 consecutive billing periods prior to the start of
3 the year in which the application is filed.
4 (2) For renewable energy credits to count toward
5 the self-direct renewable portfolio standard
6 compliance program, they must:
7 (i) qualify as renewable energy credits as
8 defined in Section 1-10 of this Act;
9 (ii) be sourced from one or more renewable
10 energy generating facilities that comply with the
11 geographic requirements as set forth in
12 subparagraph (I) of paragraph (1) of subsection
13 (c) as interpreted through the Agency's long-term
14 renewable resources procurement plan, or, where
15 applicable, the geographic requirements that
16 governed utility-scale renewable energy credits at
17 the time the eligible self-direct customer entered
18 into the applicable renewable energy credit
19 purchase agreement;
20 (iii) be procured through long-term contracts
21 with term lengths of at least 10 years either
22 directly with the renewable energy generating
23 facility or through a bundled power purchase
24 agreement, a virtual power purchase agreement, an
25 agreement between the renewable generating
26 facility, an alternative retail electric supplier,
HB1700 Enrolled - 184 - LRB104 08228 SPS 18278 b
1 and the customer, or such other structure as is
2 permissible under this subparagraph (R);
3 (iv) be equivalent in volume to at least 40%
4 of the eligible self-direct customer's usage,
5 determined annually by the eligible self-direct
6 customer's usage during the previous delivery
7 year, measured to the nearest megawatt-hour;
8 (v) be retired by or on behalf of the large
9 energy customer;
10 (vi) be sourced from new utility-scale wind
11 projects or new utility-scale solar projects; and
12 (vii) if the contracts for renewable energy
13 credits are entered into after the effective date
14 of this amendatory Act of the 102nd General
15 Assembly, the new utility-scale wind projects or
16 new utility-scale solar projects must comply with
17 the requirements established in subparagraphs (P)
18 and (Q) of paragraph (1) of this subsection (c)
19 and subsection (c-10).
20 (3) The self-direct renewable portfolio standard
21 compliance program shall be designed to allow eligible
22 self-direct customers to procure new renewable energy
23 credits from new utility-scale wind projects or new
24 utility-scale photovoltaic projects. The Agency shall
25 annually determine the amount of utility-scale
26 renewable energy credits it will include each year
HB1700 Enrolled - 185 - LRB104 08228 SPS 18278 b
1 from the self-direct renewable portfolio standard
2 compliance program, subject to receiving qualifying
3 applications. In making this determination, the Agency
4 shall evaluate publicly available analyses and studies
5 of the potential market size for utility-scale
6 renewable energy long-term purchase agreements by
7 commercial and industrial energy customers and make
8 that report publicly available. If demand for
9 participation in the self-direct renewable portfolio
10 standard compliance program exceeds availability, the
11 Agency shall ensure participation is evenly split
12 between commercial and industrial users to the extent
13 there is sufficient demand from both customer classes.
14 Each renewable energy credit procured pursuant to this
15 subparagraph (R) by a self-direct customer shall
16 reduce the total volume of renewable energy credits
17 the Agency is otherwise required to procure from new
18 utility-scale projects pursuant to subparagraph (C) of
19 paragraph (1) of this subsection (c) on behalf of
20 contracting utilities where the eligible self-direct
21 customer is located. The self-direct customer shall
22 file an annual compliance report with the Agency
23 pursuant to terms established by the Agency through
24 its long-term renewable resources procurement plan to
25 be eligible for participation in this program.
26 Customers must provide the Agency with their most
HB1700 Enrolled - 186 - LRB104 08228 SPS 18278 b
1 recent electricity billing statements or other
2 information deemed necessary by the Agency to
3 demonstrate they are an eligible self-direct customer.
4 (4) The Commission shall approve a reduction in
5 the volumetric charges collected pursuant to Section
6 16-108 of the Public Utilities Act for approved
7 eligible self-direct customers equivalent to the
8 anticipated cost of renewable energy credit deliveries
9 under contracts for new utility-scale wind and new
10 utility-scale solar entered for each delivery year
11 after the large energy customer begins retiring
12 eligible new utility scale renewable energy credits
13 for self-compliance. The self-direct credit amount
14 shall be determined annually and is equal to the
15 estimated portion of the cost authorized by
16 subparagraph (E) of paragraph (1) of this subsection
17 (c) that supported the annual procurement of
18 utility-scale renewable energy credits in the prior
19 delivery year using a methodology described in the
20 long-term renewable resources procurement plan,
21 expressed on a per kilowatthour basis, and does not
22 include (i) costs associated with any contracts
23 entered into before the delivery year in which the
24 customer files the initial compliance report to be
25 eligible for participation in the self-direct program,
26 and (ii) costs associated with procuring renewable
HB1700 Enrolled - 187 - LRB104 08228 SPS 18278 b
1 energy credits through existing and future contracts
2 through the Adjustable Block Program, subsection (c-5)
3 of this Section 1-75, and the Solar for All Program.
4 The Agency shall assist the Commission in determining
5 the current and future costs. The Agency must
6 determine the self-direct credit amount for new and
7 existing eligible self-direct customers and submit
8 this to the Commission in an annual compliance filing.
9 The Commission must approve the self-direct credit
10 amount by June 1, 2023 and June 1 of each delivery year
11 thereafter.
12 (5) Customers described in this subparagraph (R)
13 shall apply, on a form developed by the Agency, to the
14 Agency to be designated as a self-direct eligible
15 customer. Once the Agency determines that a
16 self-direct customer is eligible for participation in
17 the program, the self-direct customer will remain
18 eligible until the end of the term of the contract.
19 Thereafter, application may be made not less than 12
20 months before the filing date of the long-term
21 renewable resources procurement plan described in this
22 Act. At a minimum, such application shall contain the
23 following:
24 (i) the customer's certification that, at the
25 time of the customer's application, the customer
26 qualifies to be a self-direct eligible customer,
HB1700 Enrolled - 188 - LRB104 08228 SPS 18278 b
1 including documents demonstrating that
2 qualification;
3 (ii) the customer's certification that the
4 customer has entered into or will enter into by
5 the beginning of the applicable procurement year,
6 one or more bilateral contracts for new wind
7 projects or new photovoltaic projects, including
8 supporting documentation;
9 (iii) certification that the contract or
10 contracts for new renewable energy resources are
11 long-term contracts with term lengths of at least
12 10 years, including supporting documentation;
13 (iv) certification of the quantities of
14 renewable energy credits that the customer will
15 purchase each year under such contract or
16 contracts, including supporting documentation;
17 (v) proof that the contract is sufficient to
18 produce renewable energy credits to be equivalent
19 in volume to at least 40% of the large energy
20 customer's usage from the previous delivery year,
21 measured to the nearest megawatt-hour; and
22 (vi) certification that the customer intends
23 to maintain the contract for the duration of the
24 length of the contract.
25 (6) If a customer receives the self-direct credit
26 but fails to properly procure and retire renewable
HB1700 Enrolled - 189 - LRB104 08228 SPS 18278 b
1 energy credits as required under this subparagraph
2 (R), the Commission, on petition from the Agency and
3 after notice and hearing, may direct such customer's
4 utility to recover the cost of the wrongfully received
5 self-direct credits plus interest through an adder to
6 charges assessed pursuant to Section 16-108 of the
7 Public Utilities Act. Self-direct customers who
8 knowingly fail to properly procure and retire
9 renewable energy credits and do not notify the Agency
10 are ineligible for continued participation in the
11 self-direct renewable portfolio standard compliance
12 program.
13 (2) (Blank).
14 (3) (Blank).
15 (4) The electric utility shall retire all renewable
16 energy credits used to comply with the standard.
17 (5) Beginning with the 2010 delivery year and ending
18 June 1, 2017, an electric utility subject to this
19 subsection (c) shall apply the lesser of the maximum
20 alternative compliance payment rate or the most recent
21 estimated alternative compliance payment rate for its
22 service territory for the corresponding compliance period,
23 established pursuant to subsection (d) of Section 16-115D
24 of the Public Utilities Act to its retail customers that
25 take service pursuant to the electric utility's hourly
26 pricing tariff or tariffs. The electric utility shall
HB1700 Enrolled - 190 - LRB104 08228 SPS 18278 b
1 retain all amounts collected as a result of the
2 application of the alternative compliance payment rate or
3 rates to such customers, and, beginning in 2011, the
4 utility shall include in the information provided under
5 item (1) of subsection (d) of Section 16-111.5 of the
6 Public Utilities Act the amounts collected under the
7 alternative compliance payment rate or rates for the prior
8 year ending May 31. Notwithstanding any limitation on the
9 procurement of renewable energy resources imposed by item
10 (2) of this subsection (c), the Agency shall increase its
11 spending on the purchase of renewable energy resources to
12 be procured by the electric utility for the next plan year
13 by an amount equal to the amounts collected by the utility
14 under the alternative compliance payment rate or rates in
15 the prior year ending May 31.
16 (6) The electric utility shall be entitled to recover
17 all of its costs associated with the procurement of
18 renewable energy credits under plans approved under this
19 Section and Section 16-111.5 of the Public Utilities Act.
20 These costs shall include associated reasonable expenses
21 for implementing the procurement programs, including, but
22 not limited to, the costs of administering and evaluating
23 the Adjustable Block program, through an automatic
24 adjustment clause tariff in accordance with subsection (k)
25 of Section 16-108 of the Public Utilities Act.
26 (7) Renewable energy credits procured from new
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1 photovoltaic projects or new distributed renewable energy
2 generation devices under this Section after June 1, 2017
3 (the effective date of Public Act 99-906) must be procured
4 from devices installed by a qualified person in compliance
5 with the requirements of Section 16-128A of the Public
6 Utilities Act and any rules or regulations adopted
7 thereunder.
8 In meeting the renewable energy requirements of this
9 subsection (c), to the extent feasible and consistent with
10 State and federal law, the renewable energy credit
11 procurements, Adjustable Block solar program, and
12 community renewable generation program shall provide
13 employment opportunities for all segments of the
14 population and workforce, including minority-owned and
15 female-owned business enterprises, and shall not,
16 consistent with State and federal law, discriminate based
17 on race or socioeconomic status.
18 (c-5) Procurement of renewable energy credits from new
19 renewable energy facilities installed at or adjacent to the
20 sites of electric generating facilities that burn or burned
21 coal as their primary fuel source.
22 (1) In addition to the procurement of renewable energy
23 credits pursuant to long-term renewable resources
24 procurement plans in accordance with subsection (c) of
25 this Section and Section 16-111.5 of the Public Utilities
26 Act, the Agency shall conduct procurement events in
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1 accordance with this subsection (c-5) for the procurement
2 by electric utilities that served more than 300,000 retail
3 customers in this State as of January 1, 2019 of renewable
4 energy credits from new renewable energy facilities to be
5 installed at or adjacent to the sites of electric
6 generating facilities that, as of January 1, 2016, burned
7 coal as their primary fuel source and meet the other
8 criteria specified in this subsection (c-5). For purposes
9 of this subsection (c-5), "new renewable energy facility"
10 means a new utility-scale solar project as defined in this
11 Section 1-75. The renewable energy credits procured
12 pursuant to this subsection (c-5) may be included or
13 counted for purposes of compliance with the amounts of
14 renewable energy credits required to be procured pursuant
15 to subsection (c) of this Section to the extent that there
16 are otherwise shortfalls in compliance with such
17 requirements. The procurement of renewable energy credits
18 by electric utilities pursuant to this subsection (c-5)
19 shall be funded solely by revenues collected from the Coal
20 to Solar and Energy Storage Initiative Charge provided for
21 in this subsection (c-5) and subsection (i-5) of Section
22 16-108 of the Public Utilities Act, shall not be funded by
23 revenues collected through any of the other funding
24 mechanisms provided for in subsection (c) of this Section,
25 and shall not be subject to the limitation imposed by
26 subsection (c) on charges to retail customers for costs to
HB1700 Enrolled - 193 - LRB104 08228 SPS 18278 b
1 procure renewable energy resources pursuant to subsection
2 (c), and shall not be subject to any other requirements or
3 limitations of subsection (c).
4 (2) The Agency shall conduct 2 procurement events to
5 select owners of electric generating facilities meeting
6 the eligibility criteria specified in this subsection
7 (c-5) to enter into long-term contracts to sell renewable
8 energy credits to electric utilities serving more than
9 300,000 retail customers in this State as of January 1,
10 2019. The first procurement event shall be conducted no
11 later than March 31, 2022, unless the Agency elects to
12 delay it, until no later than May 1, 2022, due to its
13 overall volume of work, and shall be to select owners of
14 electric generating facilities located in this State and
15 south of federal Interstate Highway 80 that meet the
16 eligibility criteria specified in this subsection (c-5).
17 The second procurement event shall be conducted no sooner
18 than September 30, 2022 and no later than October 31, 2022
19 and shall be to select owners of electric generating
20 facilities located anywhere in this State that meet the
21 eligibility criteria specified in this subsection (c-5).
22 The Agency shall establish and announce a time period,
23 which shall begin no later than 30 days prior to the
24 scheduled date for the procurement event, during which
25 applicants may submit applications to be selected as
26 suppliers of renewable energy credits pursuant to this
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1 subsection (c-5). The eligibility criteria for selection
2 as a supplier of renewable energy credits pursuant to this
3 subsection (c-5) shall be as follows:
4 (A) The applicant owns an electric generating
5 facility located in this State that: (i) as of January
6 1, 2016, burned coal as its primary fuel to generate
7 electricity; and (ii) has, or had prior to retirement,
8 an electric generating capacity of at least 150
9 megawatts. The electric generating facility can be
10 either: (i) retired as of the date of the procurement
11 event; or (ii) still operating as of the date of the
12 procurement event.
13 (B) The applicant is not (i) an electric
14 cooperative as defined in Section 3-119 of the Public
15 Utilities Act, or (ii) an entity described in
16 subsection (b)(1) of Section 3-105 of the Public
17 Utilities Act, or an association or consortium of or
18 an entity owned by entities described in (i) or (ii);
19 and the coal-fueled electric generating facility was
20 at one time owned, in whole or in part, by a public
21 utility as defined in Section 3-105 of the Public
22 Utilities Act.
23 (C) If participating in the first procurement
24 event, the applicant proposes and commits to construct
25 and operate, at the site, and if necessary for
26 sufficient space on property adjacent to the existing
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1 property, at which the electric generating facility
2 identified in paragraph (A) is located: (i) a new
3 renewable energy facility of at least 20 megawatts but
4 no more than 100 megawatts of electric generating
5 capacity, and (ii) an energy storage facility having a
6 storage capacity equal to at least 2 megawatts and at
7 most 10 megawatts. If participating in the second
8 procurement event, the applicant proposes and commits
9 to construct and operate, at the site, and if
10 necessary for sufficient space on property adjacent to
11 the existing property, at which the electric
12 generating facility identified in paragraph (A) is
13 located: (i) a new renewable energy facility of at
14 least 5 megawatts but no more than 20 megawatts of
15 electric generating capacity, and (ii) an energy
16 storage facility having a storage capacity equal to at
17 least 0.5 megawatts and at most one megawatt.
18 (D) The applicant agrees that the new renewable
19 energy facility and the energy storage facility will
20 be constructed or installed by a qualified entity or
21 entities in compliance with the requirements of
22 subsection (g) of Section 16-128A of the Public
23 Utilities Act and any rules adopted thereunder.
24 (E) The applicant agrees that personnel operating
25 the new renewable energy facility and the energy
26 storage facility will have the requisite skills,
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1 knowledge, training, experience, and competence, which
2 may be demonstrated by completion or current
3 participation and ultimate completion by employees of
4 an accredited or otherwise recognized apprenticeship
5 program for the employee's particular craft, trade, or
6 skill, including through training and education
7 courses and opportunities offered by the owner to
8 employees of the coal-fueled electric generating
9 facility or by previous employment experience
10 performing the employee's particular work skill or
11 function.
12 (F) The applicant commits that not less than the
13 prevailing wage, as determined pursuant to the
14 Prevailing Wage Act, will be paid to the applicant's
15 employees engaged in construction activities
16 associated with the new renewable energy facility and
17 the new energy storage facility and to the employees
18 of applicant's contractors engaged in construction
19 activities associated with the new renewable energy
20 facility and the new energy storage facility, and
21 that, on or before the commercial operation date of
22 the new renewable energy facility, the applicant shall
23 file a report with the Agency certifying that the
24 requirements of this subparagraph (F) have been met.
25 (G) The applicant commits that if selected, it
26 will negotiate a project labor agreement for the
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1 construction of the new renewable energy facility and
2 associated energy storage facility that includes
3 provisions requiring the parties to the agreement to
4 work together to establish diversity threshold
5 requirements and to ensure best efforts to meet
6 diversity targets, improve diversity at the applicable
7 job site, create diverse apprenticeship opportunities,
8 and create opportunities to employ former coal-fired
9 power plant workers.
10 (H) The applicant commits to enter into a contract
11 or contracts for the applicable duration to provide
12 specified numbers of renewable energy credits each
13 year from the new renewable energy facility to
14 electric utilities that served more than 300,000
15 retail customers in this State as of January 1, 2019,
16 at a price of $30 per renewable energy credit. The
17 price per renewable energy credit shall be fixed at
18 $30 for the applicable duration and the renewable
19 energy credits shall not be indexed renewable energy
20 credits as provided for in item (v) of subparagraph
21 (G) of paragraph (1) of subsection (c) of Section 1-75
22 of this Act. The applicable duration of each contract
23 shall be 20 years, unless the applicant is physically
24 interconnected to the PJM Interconnection, LLC
25 transmission grid and had a generating capacity of at
26 least 1,200 megawatts as of January 1, 2021, in which
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1 case the applicable duration of the contract shall be
2 15 years.
3 (I) The applicant's application is certified by an
4 officer of the applicant and by an officer of the
5 applicant's ultimate parent company, if any.
6 (3) An applicant may submit applications to contract
7 to supply renewable energy credits from more than one new
8 renewable energy facility to be constructed at or adjacent
9 to one or more qualifying electric generating facilities
10 owned by the applicant. The Agency may select new
11 renewable energy facilities to be located at or adjacent
12 to the sites of more than one qualifying electric
13 generation facility owned by an applicant to contract with
14 electric utilities to supply renewable energy credits from
15 such facilities.
16 (4) The Agency shall assess fees to each applicant to
17 recover the Agency's costs incurred in receiving and
18 evaluating applications, conducting the procurement event,
19 developing contracts for sale, delivery and purchase of
20 renewable energy credits, and monitoring the
21 administration of such contracts, as provided for in this
22 subsection (c-5), including fees paid to a procurement
23 administrator retained by the Agency for one or more of
24 these purposes.
25 (5) The Agency shall select the applicants and the new
26 renewable energy facilities to contract with electric
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1 utilities to supply renewable energy credits in accordance
2 with this subsection (c-5). In the first procurement
3 event, the Agency shall select applicants and new
4 renewable energy facilities to supply renewable energy
5 credits, at a price of $30 per renewable energy credit,
6 aggregating to no less than 400,000 renewable energy
7 credits per year for the applicable duration, assuming
8 sufficient qualifying applications to supply, in the
9 aggregate, at least that amount of renewable energy
10 credits per year; and not more than 580,000 renewable
11 energy credits per year for the applicable duration. In
12 the second procurement event, the Agency shall select
13 applicants and new renewable energy facilities to supply
14 renewable energy credits, at a price of $30 per renewable
15 energy credit, aggregating to no more than 625,000
16 renewable energy credits per year less the amount of
17 renewable energy credits each year contracted for as a
18 result of the first procurement event, for the applicable
19 durations. The number of renewable energy credits to be
20 procured as specified in this paragraph (5) shall not be
21 reduced based on renewable energy credits procured in the
22 self-direct renewable energy credit compliance program
23 established pursuant to subparagraph (R) of paragraph (1)
24 of subsection (c) of Section 1-75.
25 (6) The obligation to purchase renewable energy
26 credits from the applicants and their new renewable energy
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1 facilities selected by the Agency shall be allocated to
2 the electric utilities based on their respective
3 percentages of kilowatthours delivered to delivery
4 services customers to the aggregate kilowatthour
5 deliveries by the electric utilities to delivery services
6 customers for the year ended December 31, 2021. In order
7 to achieve these allocation percentages between or among
8 the electric utilities, the Agency shall require each
9 applicant that is selected in the procurement event to
10 enter into a contract with each electric utility for the
11 sale and purchase of renewable energy credits from each
12 new renewable energy facility to be constructed and
13 operated by the applicant, with the sale and purchase
14 obligations under the contracts to aggregate to the total
15 number of renewable energy credits per year to be supplied
16 by the applicant from the new renewable energy facility.
17 (7) The Agency shall submit its proposed selection of
18 applicants, new renewable energy facilities to be
19 constructed, and renewable energy credit amounts for each
20 procurement event to the Commission for approval. The
21 Commission shall, within 2 business days after receipt of
22 the Agency's proposed selections, approve the proposed
23 selections if it determines that the applicants and the
24 new renewable energy facilities to be constructed meet the
25 selection criteria set forth in this subsection (c-5) and
26 that the Agency seeks approval for contracts of applicable
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1 durations aggregating to no more than the maximum amount
2 of renewable energy credits per year authorized by this
3 subsection (c-5) for the procurement event, at a price of
4 $30 per renewable energy credit.
5 (8) The Agency, in conjunction with its procurement
6 administrator if one is retained, the electric utilities,
7 and potential applicants for contracts to produce and
8 supply renewable energy credits pursuant to this
9 subsection (c-5), shall develop a standard form contract
10 for the sale, delivery and purchase of renewable energy
11 credits pursuant to this subsection (c-5). Each contract
12 resulting from the first procurement event shall allow for
13 a commercial operation date for the new renewable energy
14 facility of either June 1, 2023 or June 1, 2024, with such
15 dates subject to adjustment as provided in this paragraph.
16 Each contract resulting from the second procurement event
17 shall provide for a commercial operation date on June 1
18 next occurring up to 48 months after execution of the
19 contract. Each contract shall provide that the owner shall
20 receive payments for renewable energy credits for the
21 applicable durations beginning with the commercial
22 operation date of the new renewable energy facility. The
23 form contract shall provide for adjustments to the
24 commercial operation and payment start dates as needed due
25 to any delays in completing the procurement and
26 contracting processes, in finalizing interconnection
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1 agreements and installing interconnection facilities, and
2 in obtaining other necessary governmental permits and
3 approvals. The form contract shall be, to the maximum
4 extent possible, consistent with standard electric
5 industry contracts for sale, delivery, and purchase of
6 renewable energy credits while taking into account the
7 specific requirements of this subsection (c-5). The form
8 contract shall provide for over-delivery and
9 under-delivery of renewable energy credits within
10 reasonable ranges during each 12-month period and penalty,
11 default, and enforcement provisions for failure of the
12 selling party to deliver renewable energy credits as
13 specified in the contract and to comply with the
14 requirements of this subsection (c-5). The standard form
15 contract shall specify that all renewable energy credits
16 delivered to the electric utility pursuant to the contract
17 shall be retired. The Agency shall make the proposed
18 contracts available for a reasonable period for comment by
19 potential applicants, and shall publish the final form
20 contract at least 30 days before the date of the first
21 procurement event.
22 (9) Coal to Solar and Energy Storage Initiative
23 Charge.
24 (A) By no later than July 1, 2022, each electric
25 utility that served more than 300,000 retail customers
26 in this State as of January 1, 2019 shall file a tariff
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1 with the Commission for the billing and collection of
2 a Coal to Solar and Energy Storage Initiative Charge
3 in accordance with subsection (i-5) of Section 16-108
4 of the Public Utilities Act, with such tariff to be
5 effective, following review and approval or
6 modification by the Commission, beginning January 1,
7 2023. The tariff shall provide for the calculation and
8 setting of the electric utility's Coal to Solar and
9 Energy Storage Initiative Charge to collect revenues
10 estimated to be sufficient, in the aggregate, (i) to
11 enable the electric utility to pay for the renewable
12 energy credits it has contracted to purchase in the
13 delivery year beginning June 1, 2023 and each delivery
14 year thereafter from new renewable energy facilities
15 located at the sites of qualifying electric generating
16 facilities, and (ii) to fund the grant payments to be
17 made in each delivery year by the Department of
18 Commerce and Economic Opportunity, or any successor
19 department or agency, which shall be referred to in
20 this subsection (c-5) as the Department, pursuant to
21 paragraph (10) of this subsection (c-5). The electric
22 utility's tariff shall provide for the billing and
23 collection of the Coal to Solar and Energy Storage
24 Initiative Charge on each kilowatthour of electricity
25 delivered to its delivery services customers within
26 its service territory and shall provide for an annual
HB1700 Enrolled - 204 - LRB104 08228 SPS 18278 b
1 reconciliation of revenues collected with actual
2 costs, in accordance with subsection (i-5) of Section
3 16-108 of the Public Utilities Act.
4 (B) Each electric utility shall remit on a monthly
5 basis to the State Treasurer, for deposit in the Coal
6 to Solar and Energy Storage Initiative Fund provided
7 for in this subsection (c-5), the electric utility's
8 collections of the Coal to Solar and Energy Storage
9 Initiative Charge in the amount estimated to be needed
10 by the Department for grant payments pursuant to grant
11 contracts entered into by the Department pursuant to
12 paragraph (10) of this subsection (c-5).
13 (10) Coal to Solar and Energy Storage Initiative Fund.
14 (A) The Coal to Solar and Energy Storage
15 Initiative Fund is established as a special fund in
16 the State treasury. The Coal to Solar and Energy
17 Storage Initiative Fund is authorized to receive, by
18 statutory deposit, that portion specified in item (B)
19 of paragraph (9) of this subsection (c-5) of moneys
20 collected by electric utilities through imposition of
21 the Coal to Solar and Energy Storage Initiative Charge
22 required by this subsection (c-5). The Coal to Solar
23 and Energy Storage Initiative Fund shall be
24 administered by the Department to provide grants to
25 support the installation and operation of energy
26 storage facilities at the sites of qualifying electric
HB1700 Enrolled - 205 - LRB104 08228 SPS 18278 b
1 generating facilities meeting the criteria specified
2 in this paragraph (10).
3 (B) The Coal to Solar and Energy Storage
4 Initiative Fund shall not be subject to sweeps,
5 administrative charges, or chargebacks, including, but
6 not limited to, those authorized under Section 8h of
7 the State Finance Act, that would in any way result in
8 the transfer of those funds from the Coal to Solar and
9 Energy Storage Initiative Fund to any other fund of
10 this State or in having any such funds utilized for any
11 purpose other than the express purposes set forth in
12 this paragraph (10).
13 (C) The Department shall utilize up to
14 $280,500,000 in the Coal to Solar and Energy Storage
15 Initiative Fund for grants, assuming sufficient
16 qualifying applicants, to support installation of
17 energy storage facilities at the sites of up to 3
18 qualifying electric generating facilities located in
19 the Midcontinent Independent System Operator, Inc.,
20 region in Illinois and the sites of up to 2 qualifying
21 electric generating facilities located in the PJM
22 Interconnection, LLC region in Illinois that meet the
23 criteria set forth in this subparagraph (C). The
24 criteria for receipt of a grant pursuant to this
25 subparagraph (C) are as follows:
26 (1) the electric generating facility at the
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1 site has, or had prior to retirement, an electric
2 generating capacity of at least 150 megawatts;
3 (2) the electric generating facility burns (or
4 burned prior to retirement) coal as its primary
5 source of fuel;
6 (3) if the electric generating facility is
7 retired, it was retired subsequent to January 1,
8 2016;
9 (4) the owner of the electric generating
10 facility has not been selected by the Agency
11 pursuant to this subsection (c-5) of this Section
12 to enter into a contract to sell renewable energy
13 credits to one or more electric utilities from a
14 new renewable energy facility located or to be
15 located at or adjacent to the site at which the
16 electric generating facility is located;
17 (5) the electric generating facility located
18 at the site was at one time owned, in whole or in
19 part, by a public utility as defined in Section
20 3-105 of the Public Utilities Act;
21 (6) the electric generating facility at the
22 site is not owned by (i) an electric cooperative
23 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
HB1700 Enrolled - 207 - LRB104 08228 SPS 18278 b
1 or an entity owned by entities described in items
2 (i) or (ii);
3 (7) the proposed energy storage facility at
4 the site will have energy storage capacity of at
5 least 37 megawatts;
6 (8) the owner commits to place the energy
7 storage facility into commercial operation on
8 either June 1, 2023, June 1, 2024, or June 1, 2025,
9 with such date subject to adjustment as needed due
10 to any delays in completing the grant contracting
11 process, in finalizing interconnection agreements
12 and in installing interconnection facilities, and
13 in obtaining necessary governmental permits and
14 approvals;
15 (9) the owner agrees that the new energy
16 storage facility will be constructed or installed
17 by a qualified entity or entities consistent with
18 the requirements of subsection (g) of Section
19 16-128A of the Public Utilities Act and any rules
20 adopted under that Section;
21 (10) the owner agrees that personnel operating
22 the energy storage facility will have the
23 requisite skills, knowledge, training, experience,
24 and competence, which may be demonstrated by
25 completion or current participation and ultimate
26 completion by employees of an accredited or
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1 otherwise recognized apprenticeship program for
2 the employee's particular craft, trade, or skill,
3 including through training and education courses
4 and opportunities offered by the owner to
5 employees of the coal-fueled electric generating
6 facility or by previous employment experience
7 performing the employee's particular work skill or
8 function;
9 (11) the owner commits that not less than the
10 prevailing wage, as determined pursuant to the
11 Prevailing Wage Act, will be paid to the owner's
12 employees engaged in construction activities
13 associated with the new energy storage facility
14 and to the employees of the owner's contractors
15 engaged in construction activities associated with
16 the new energy storage facility, and that, on or
17 before the commercial operation date of the new
18 energy storage facility, the owner shall file a
19 report with the Department certifying that the
20 requirements of this subparagraph (11) have been
21 met; and
22 (12) the owner commits that if selected to
23 receive a grant, it will negotiate a project labor
24 agreement for the construction of the new energy
25 storage facility that includes provisions
26 requiring the parties to the agreement to work
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1 together to establish diversity threshold
2 requirements and to ensure best efforts to meet
3 diversity targets, improve diversity at the
4 applicable job site, create diverse apprenticeship
5 opportunities, and create opportunities to employ
6 former coal-fired power plant workers.
7 The Department shall accept applications for this
8 grant program until March 31, 2022 and shall announce
9 the award of grants no later than June 1, 2022. The
10 Department shall make the grant payments to a
11 recipient in equal annual amounts for 10 years
12 following the date the energy storage facility is
13 placed into commercial operation. The annual grant
14 payments to a qualifying energy storage facility shall
15 be $110,000 per megawatt of energy storage capacity,
16 with total annual grant payments pursuant to this
17 subparagraph (C) for qualifying energy storage
18 facilities not to exceed $28,050,000 in any year.
19 (D) Grants of funding for energy storage
20 facilities pursuant to subparagraph (C) of this
21 paragraph (10), from the Coal to Solar and Energy
22 Storage Initiative Fund, shall be memorialized in
23 grant contracts between the Department and the
24 recipient. The grant contracts shall specify the date
25 or dates in each year on which the annual grant
26 payments shall be paid.
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1 (E) All disbursements from the Coal to Solar and
2 Energy Storage Initiative Fund shall be made only upon
3 warrants of the Comptroller drawn upon the Treasurer
4 as custodian of the Fund upon vouchers signed by the
5 Director of the Department or by the person or persons
6 designated by the Director of the Department for that
7 purpose. The Comptroller is authorized to draw the
8 warrants upon vouchers so signed. The Treasurer shall
9 accept all written warrants so signed and shall be
10 released from liability for all payments made on those
11 warrants.
12 (11) Diversity, equity, and inclusion plans.
13 (A) Each applicant selected in a procurement event
14 to contract to supply renewable energy credits in
15 accordance with this subsection (c-5) and each owner
16 selected by the Department to receive a grant or
17 grants to support the construction and operation of a
18 new energy storage facility or facilities in
19 accordance with this subsection (c-5) shall, within 60
20 days following the Commission's approval of the
21 applicant to contract to supply renewable energy
22 credits or within 60 days following execution of a
23 grant contract with the Department, as applicable,
24 submit to the Commission a diversity, equity, and
25 inclusion plan setting forth the applicant's or
26 owner's numeric goals for the diversity composition of
HB1700 Enrolled - 211 - LRB104 08228 SPS 18278 b
1 its supplier entities for the new renewable energy
2 facility or new energy storage facility, as
3 applicable, which shall be referred to for purposes of
4 this paragraph (11) as the project, and the
5 applicant's or owner's action plan and schedule for
6 achieving those goals.
7 (B) For purposes of this paragraph (11), diversity
8 composition shall be based on the percentage, which
9 shall be a minimum of 25%, of eligible expenditures
10 for contract awards for materials and services (which
11 shall be defined in the plan) to business enterprises
12 owned by minority persons, women, or persons with
13 disabilities as defined in Section 2 of the Business
14 Enterprise for Minorities, Women, and Persons with
15 Disabilities Act, to LGBTQ business enterprises, to
16 veteran-owned business enterprises, and to business
17 enterprises located in environmental justice
18 communities. The diversity composition goals of the
19 plan may include eligible expenditures in areas for
20 vendor or supplier opportunities in addition to
21 development and construction of the project, and may
22 exclude from eligible expenditures materials and
23 services with limited market availability, limited
24 production and availability from suppliers in the
25 United States, such as solar panels and storage
26 batteries, and material and services that are subject
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1 to critical energy infrastructure or cybersecurity
2 requirements or restrictions. The plan may provide
3 that the diversity composition goals may be met
4 through Tier 1 Direct or Tier 2 subcontracting
5 expenditures or a combination thereof for the project.
6 (C) The plan shall provide for, but not be limited
7 to: (i) internal initiatives, including multi-tier
8 initiatives, by the applicant or owner, or by its
9 engineering, procurement and construction contractor
10 if one is used for the project, which for purposes of
11 this paragraph (11) shall be referred to as the EPC
12 contractor, to enable diverse businesses to be
13 considered fairly for selection to provide materials
14 and services; (ii) requirements for the applicant or
15 owner or its EPC contractor to proactively solicit and
16 utilize diverse businesses to provide materials and
17 services; and (iii) requirements for the applicant or
18 owner or its EPC contractor to hire a diverse
19 workforce for the project. The plan shall include a
20 description of the applicant's or owner's diversity
21 recruiting efforts both for the project and for other
22 areas of the applicant's or owner's business
23 operations. The plan shall provide for the imposition
24 of financial penalties on the applicant's or owner's
25 EPC contractor for failure to exercise best efforts to
26 comply with and execute the EPC contractor's diversity
HB1700 Enrolled - 213 - LRB104 08228 SPS 18278 b
1 obligations under the plan. The plan may provide for
2 the applicant or owner to set aside a portion of the
3 work on the project to serve as an incubation program
4 for qualified businesses, as specified in the plan,
5 owned by minority persons, women, persons with
6 disabilities, LGBTQ persons, and veterans, and
7 businesses located in environmental justice
8 communities, seeking to enter the renewable energy
9 industry.
10 (D) The applicant or owner may submit a revised or
11 updated plan to the Commission from time to time as
12 circumstances warrant. The applicant or owner shall
13 file annual reports with the Commission detailing the
14 applicant's or owner's progress in implementing its
15 plan and achieving its goals and any modifications the
16 applicant or owner has made to its plan to better
17 achieve its diversity, equity and inclusion goals. The
18 applicant or owner shall file a final report on the
19 fifth June 1 following the commercial operation date
20 of the new renewable energy resource or new energy
21 storage facility, but the applicant or owner shall
22 thereafter continue to be subject to applicable
23 reporting requirements of Section 5-117 of the Public
24 Utilities Act.
25 (c-10) Equity accountability system. It is the purpose of
26 this subsection (c-10) to create an equity accountability
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1 system, which includes the minimum equity standards for all
2 renewable energy procurements, the equity category of the
3 Adjustable Block Program, and the equity prioritization for
4 noncompetitive procurements, that is successful in advancing
5 priority access to the clean energy economy for businesses and
6 workers from communities that have been excluded from economic
7 opportunities in the energy sector, have been subject to
8 disproportionate levels of pollution, and have
9 disproportionately experienced negative public health
10 outcomes. Further, it is the purpose of this subsection to
11 ensure that this equity accountability system is successful in
12 advancing equity across Illinois by providing access to the
13 clean energy economy for businesses and workers from
14 communities that have been historically excluded from economic
15 opportunities in the energy sector, have been subject to
16 disproportionate levels of pollution, and have
17 disproportionately experienced negative public health
18 outcomes.
19 (1) Minimum equity standards. The Agency shall create
20 programs with the purpose of increasing access to and
21 development of equity eligible contractors, who are prime
22 contractors and subcontractors, across all of the programs
23 it manages. All applications for renewable energy credit
24 procurements shall comply with specific minimum equity
25 commitments. Starting in the delivery year immediately
26 following the next long-term renewable resources
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1 procurement plan, at least 10% of the project workforce
2 for each entity participating in a procurement program
3 outlined in this subsection (c-10) must be done by equity
4 eligible persons or equity eligible contractors. The
5 Agency shall increase the minimum percentage each delivery
6 year thereafter by increments that ensure a statewide
7 average of 30% of the project workforce for each entity
8 participating in a procurement program is done by equity
9 eligible persons or equity eligible contractors by 2030.
10 The Agency shall propose a schedule of percentage
11 increases to the minimum equity standards in its draft
12 revised renewable energy resources procurement plan
13 submitted to the Commission for approval pursuant to
14 paragraph (5) of subsection (b) of Section 16-111.5 of the
15 Public Utilities Act. In determining these annual
16 increases, the Agency shall have the discretion to
17 establish different minimum equity standards for different
18 types of procurements and different regions of the State
19 if the Agency finds that doing so will further the
20 purposes of this subsection (c-10). The proposed schedule
21 of annual increases shall be revisited and updated on an
22 annual basis. Revisions shall be developed with
23 stakeholder input, including from equity eligible persons,
24 equity eligible contractors, clean energy industry
25 representatives, and community-based organizations that
26 work with such persons and contractors.
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1 (A) At the start of each delivery year, the Agency
2 shall require a compliance plan from each entity
3 participating in a procurement program of subsection
4 (c) of this Section that demonstrates how they will
5 achieve compliance with the minimum equity standard
6 percentage for work completed in that delivery year.
7 If an entity applies for its approved vendor or
8 designee status between delivery years, the Agency
9 shall require a compliance plan at the time of
10 application.
11 (B) Halfway through each delivery year, the Agency
12 shall require each entity participating in a
13 procurement program to confirm that it will achieve
14 compliance in that delivery year, when applicable. The
15 Agency may offer corrective action plans to entities
16 that are not on track to achieve compliance.
17 (C) At the end of each delivery year, each entity
18 participating and completing work in that delivery
19 year in a procurement program of subsection (c) shall
20 submit a report to the Agency that demonstrates how it
21 achieved compliance with the minimum equity standards
22 percentage for that delivery year.
23 (D) The Agency shall prohibit participation in
24 procurement programs by an approved vendor or
25 designee, as applicable, or entities with which an
26 approved vendor or designee, as applicable, shares a
HB1700 Enrolled - 217 - LRB104 08228 SPS 18278 b
1 common parent company if an approved vendor or
2 designee, as applicable, failed to meet the minimum
3 equity standards for the prior delivery year. Waivers
4 approved for lack of equity eligible persons or equity
5 eligible contractors in a geographic area of a project
6 shall not count against the approved vendor or
7 designee. The Agency shall offer a corrective action
8 plan for any such entities to assist them in obtaining
9 compliance and shall allow continued access to
10 procurement programs upon an approved vendor or
11 designee demonstrating compliance.
12 (E) The Agency shall pursue efficiencies achieved
13 by combining with other approved vendor or designee
14 reporting.
15 (2) Equity accountability system within the Adjustable
16 Block program. The equity category described in item (vi)
17 of subparagraph (K) of subsection (c) is only available to
18 applicants that are equity eligible contractors.
19 (3) Equity accountability system within competitive
20 procurements. Through its long-term renewable resources
21 procurement plan, the Agency shall develop requirements
22 for ensuring that competitive procurement processes,
23 including utility-scale solar, utility-scale wind, and
24 brownfield site photovoltaic projects, advance the equity
25 goals of this subsection (c-10). Subject to Commission
26 approval, the Agency shall develop bid application
HB1700 Enrolled - 218 - LRB104 08228 SPS 18278 b
1 requirements and a bid evaluation methodology for ensuring
2 that utilization of equity eligible contractors, whether
3 as bidders or as participants on project development, is
4 optimized, including requiring that winning or successful
5 applicants for utility-scale projects are or will partner
6 with equity eligible contractors and giving preference to
7 bids through which a higher portion of contract value
8 flows to equity eligible contractors. To the extent
9 practicable, entities participating in competitive
10 procurements shall also be required to meet all the equity
11 accountability requirements for approved vendors and their
12 designees under this subsection (c-10). In developing
13 these requirements, the Agency shall also consider whether
14 equity goals can be further advanced through additional
15 measures.
16 (4) In the first revision to the long-term renewable
17 energy resources procurement plan and each revision
18 thereafter, the Agency shall include the following:
19 (A) The current status and number of equity
20 eligible contractors listed in the Energy Workforce
21 Equity Database designed in subsection (c-25),
22 including the number of equity eligible contractors
23 with current certifications as issued by the Agency.
24 (B) A mechanism for measuring, tracking, and
25 reporting project workforce at the approved vendor or
26 designee level, as applicable, which shall include a
HB1700 Enrolled - 219 - LRB104 08228 SPS 18278 b
1 measurement methodology and records to be made
2 available for audit by the Agency or the Program
3 Administrator.
4 (C) A program for approved vendors, designees,
5 eligible persons, and equity eligible contractors to
6 receive trainings, guidance, and other support from
7 the Agency or its designee regarding the equity
8 category outlined in item (vi) of subparagraph (K) of
9 paragraph (1) of subsection (c) and in meeting the
10 minimum equity standards of this subsection (c-10).
11 (D) A process for certifying equity eligible
12 contractors and equity eligible persons. The
13 certification process shall coordinate with the Energy
14 Workforce Equity Database set forth in subsection
15 (c-25).
16 (E) An application for waiver of the minimum
17 equity standards of this subsection, which the Agency
18 shall have the discretion to grant in rare
19 circumstances. The Agency may grant such a waiver
20 where the applicant provides evidence of significant
21 efforts toward meeting the minimum equity commitment,
22 including: use of the Energy Workforce Equity
23 Database; efforts to hire or contract with entities
24 that hire eligible persons; and efforts to establish
25 contracting relationships with eligible contractors.
26 The Agency shall support applicants in understanding
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1 the Energy Workforce Equity Database and other
2 resources for pursuing compliance of the minimum
3 equity standards. Waivers shall be project-specific,
4 unless the Agency deems it necessary to grant a waiver
5 across a portfolio of projects, and in effect for no
6 longer than one year. Any waiver extension or
7 subsequent waiver request from an applicant shall be
8 subject to the requirements of this Section and shall
9 specify efforts made to reach compliance. When
10 considering whether to grant a waiver, and to what
11 extent, the Agency shall consider the degree to which
12 similarly situated applicants have been able to meet
13 these minimum equity commitments. For repeated waiver
14 requests for specific lack of eligible persons or
15 eligible contractors available, the Agency shall make
16 recommendations to target recruitment to add such
17 eligible persons or eligible contractors to the
18 database.
19 (5) The Agency shall collect information about work on
20 projects or portfolios of projects subject to these
21 minimum equity standards to ensure compliance with this
22 subsection (c-10). Reporting in furtherance of this
23 requirement may be combined with other annual reporting
24 requirements. Such reporting shall include proof of
25 certification of each equity eligible contractor or equity
26 eligible person during the applicable time period.
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1 (6) The Agency shall keep confidential all information
2 and communication that provides private or personal
3 information.
4 (7) Modifications to the equity accountability system.
5 As part of the update of the long-term renewable resources
6 procurement plan to be initiated in 2023, or sooner if the
7 Agency deems necessary, the Agency shall determine the
8 extent to which the equity accountability system described
9 in this subsection (c-10) has advanced the goals of this
10 amendatory Act of the 102nd General Assembly, including
11 through the inclusion of equity eligible persons and
12 equity eligible contractors in renewable energy credit
13 projects. If the Agency finds that the equity
14 accountability system has failed to meet those goals to
15 its fullest potential, the Agency may revise the following
16 criteria for future Agency procurements: (A) the
17 percentage of project workforce, or other appropriate
18 workforce measure, certified as equity eligible persons or
19 equity eligible contractors; (B) definitions for equity
20 investment eligible persons and equity investment eligible
21 community; and (C) such other modifications necessary to
22 advance the goals of this amendatory Act of the 102nd
23 General Assembly effectively. Such revised criteria may
24 also establish distinct equity accountability systems for
25 different types of procurements or different regions of
26 the State if the Agency finds that doing so will further
HB1700 Enrolled - 222 - LRB104 08228 SPS 18278 b
1 the purposes of such programs. Revisions shall be
2 developed with stakeholder input, including from equity
3 eligible persons, equity eligible contractors, and
4 community-based organizations that work with such persons
5 and contractors.
6 (c-15) Racial discrimination elimination powers and
7 process.
8 (1) Purpose. It is the purpose of this subsection to
9 empower the Agency and other State actors to remedy racial
10 discrimination in Illinois' clean energy economy as
11 effectively and expediently as possible, including through
12 the use of race-conscious remedies, such as race-conscious
13 contracting and hiring goals, as consistent with State and
14 federal law.
15 (2) Racial disparity and discrimination review
16 process.
17 (A) Within one year after awarding contracts using
18 the equity actions processes established in this
19 Section, the Agency shall publish a report evaluating
20 the effectiveness of the equity actions point criteria
21 of this Section in increasing participation of equity
22 eligible persons and equity eligible contractors. The
23 report shall disaggregate participating workers and
24 contractors by race and ethnicity. The report shall be
25 forwarded to the Governor, the General Assembly, and
26 the Illinois Commerce Commission and be made available
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1 to the public.
2 (B) As soon as is practicable thereafter, the
3 Agency, in consultation with the Department of
4 Commerce and Economic Opportunity, Department of
5 Labor, and other agencies that may be relevant, shall
6 commission and publish a disparity and availability
7 study that measures the presence and impact of
8 discrimination on minority businesses and workers in
9 Illinois' clean energy economy. The Agency may hire
10 consultants and experts to conduct the disparity and
11 availability study, with the retention of those
12 consultants and experts exempt from the requirements
13 of Section 20-10 of the Illinois Procurement Code. The
14 Illinois Power Agency shall forward a copy of its
15 findings and recommendations to the Governor, the
16 General Assembly, and the Illinois Commerce
17 Commission. If the disparity and availability study
18 establishes a strong basis in evidence that there is
19 discrimination in Illinois' clean energy economy, the
20 Agency, Department of Commerce and Economic
21 Opportunity, Department of Labor, Department of
22 Corrections, and other appropriate agencies shall take
23 appropriate remedial actions, including race-conscious
24 remedial actions as consistent with State and federal
25 law, to effectively remedy this discrimination. Such
26 remedies may include modification of the equity
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1 accountability system as described in subsection
2 (c-10).
3 (c-20) Program data collection.
4 (1) Purpose. Data collection, data analysis, and
5 reporting are critical to ensure that the benefits of the
6 clean energy economy provided to Illinois residents and
7 businesses are equitably distributed across the State. The
8 Agency shall collect data from program applicants in order
9 to track and improve equitable distribution of benefits
10 across Illinois communities for all procurements the
11 Agency conducts. The Agency shall use this data to, among
12 other things, measure any potential impact of racial
13 discrimination on the distribution of benefits and provide
14 information necessary to correct any discrimination
15 through methods consistent with State and federal law.
16 (2) Agency collection of program data. The Agency
17 shall collect demographic and geographic data for each
18 entity awarded contracts under any Agency-administered
19 program.
20 (3) Required information to be collected. The Agency
21 shall collect the following information from applicants
22 and program participants where applicable:
23 (A) demographic information, including racial or
24 ethnic identity for real persons employed, contracted,
25 or subcontracted through the program and owners of
26 businesses or entities that apply to receive renewable
HB1700 Enrolled - 225 - LRB104 08228 SPS 18278 b
1 energy credits from the Agency;
2 (B) geographic location of the residency of real
3 persons employed, contracted, or subcontracted through
4 the program and geographic location of the
5 headquarters of the business or entity that applies to
6 receive renewable energy credits from the Agency; and
7 (C) any other information the Agency determines is
8 necessary for the purpose of achieving the purpose of
9 this subsection.
10 (4) Publication of collected information. The Agency
11 shall publish, at least annually, information on the
12 demographics of program participants on an aggregate
13 basis.
14 (5) Nothing in this subsection shall be interpreted to
15 limit the authority of the Agency, or other agency or
16 department of the State, to require or collect demographic
17 information from applicants of other State programs.
18 (c-25) Energy Workforce Equity Database.
19 (1) The Agency, in consultation with the Department of
20 Commerce and Economic Opportunity, shall create an Energy
21 Workforce Equity Database, and may contract with a third
22 party to do so ("database program administrator"). If the
23 Department decides to contract with a third party, that
24 third party shall be exempt from the requirements of
25 Section 20-10 of the Illinois Procurement Code. The Energy
26 Workforce Equity Database shall be a searchable database
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1 of suppliers, vendors, and subcontractors for clean energy
2 industries that is:
3 (A) publicly accessible;
4 (B) easy for people to find and use;
5 (C) organized by company specialty or field;
6 (D) region-specific; and
7 (E) populated with information including, but not
8 limited to, contacts for suppliers, vendors, or
9 subcontractors who are minority and women-owned
10 business enterprise certified or who participate or
11 have participated in any of the programs described in
12 this Act.
13 (2) The Agency shall create an easily accessible,
14 public facing online tool using the database information
15 that includes, at a minimum, the following:
16 (A) a map of environmental justice and equity
17 investment eligible communities;
18 (B) job postings and recruiting opportunities;
19 (C) a means by which recruiting clean energy
20 companies can find and interact with current or former
21 participants of clean energy workforce training
22 programs;
23 (D) information on workforce training service
24 providers and training opportunities available to
25 prospective workers;
26 (E) renewable energy company diversity reporting;
HB1700 Enrolled - 227 - LRB104 08228 SPS 18278 b
1 (F) a list of equity eligible contractors with
2 their contact information, types of work performed,
3 and locations worked in;
4 (G) reporting on outcomes of the programs
5 described in the workforce programs of the Energy
6 Transition Act, including information such as, but not
7 limited to, retention rate, graduation rate, and
8 placement rates of trainees; and
9 (H) information about the Jobs and Environmental
10 Justice Grant Program, the Clean Energy Jobs and
11 Justice Fund, and other sources of capital.
12 (3) The Agency shall ensure the database is regularly
13 updated to ensure information is current and shall
14 coordinate with the Department of Commerce and Economic
15 Opportunity to ensure that it includes information on
16 individuals and entities that are or have participated in
17 the Clean Jobs Workforce Network Program, Clean Energy
18 Contractor Incubator Program, Returning Residents Clean
19 Jobs Training Program, or Clean Energy Primes Contractor
20 Accelerator Program.
21 (c-30) Enforcement of minimum equity standards. All
22 entities seeking renewable energy credits must submit an
23 annual report to demonstrate compliance with each of the
24 equity commitments required under subsection (c-10). If the
25 Agency concludes the entity has not met or maintained its
26 minimum equity standards required under the applicable
HB1700 Enrolled - 228 - LRB104 08228 SPS 18278 b
1 subparagraphs under subsection (c-10), the Agency shall deny
2 the entity's ability to participate in procurement programs in
3 subsection (c), including by withholding approved vendor or
4 designee status. The Agency may require the entity to enter
5 into a corrective action plan. An entity that is not
6 recertified for failing to meet required equity actions in
7 subparagraph (c-10) may reapply once they have a corrective
8 action plan and achieve compliance with the minimum equity
9 standards.
10 (d) Clean coal portfolio standard.
11 (1) The procurement plans shall include electricity
12 generated using clean coal. Each utility shall enter into
13 one or more sourcing agreements with the initial clean
14 coal facility, as provided in paragraph (3) of this
15 subsection (d), covering electricity generated by the
16 initial clean coal facility representing at least 5% of
17 each utility's total supply to serve the load of eligible
18 retail customers in 2015 and each year thereafter, as
19 described in paragraph (3) of this subsection (d), subject
20 to the limits specified in paragraph (2) of this
21 subsection (d). It is the goal of the State that by January
22 1, 2025, 25% of the electricity used in the State shall be
23 generated by cost-effective clean coal facilities. For
24 purposes of this subsection (d), "cost-effective" means
25 that the expenditures pursuant to such sourcing agreements
26 do not cause the limit stated in paragraph (2) of this
HB1700 Enrolled - 229 - LRB104 08228 SPS 18278 b
1 subsection (d) to be exceeded and do not exceed cost-based
2 benchmarks, which shall be developed to assess all
3 expenditures pursuant to such sourcing agreements covering
4 electricity generated by clean coal facilities, other than
5 the initial clean coal facility, by the procurement
6 administrator, in consultation with the Commission staff,
7 Agency staff, and the procurement monitor and shall be
8 subject to Commission review and approval.
9 A utility party to a sourcing agreement shall
10 immediately retire any emission credits that it receives
11 in connection with the electricity covered by such
12 agreement.
13 Utilities shall maintain adequate records documenting
14 the purchases under the sourcing agreement to comply with
15 this subsection (d) and shall file an accounting with the
16 load forecast that must be filed with the Agency by July 15
17 of each year, in accordance with subsection (d) of Section
18 16-111.5 of the Public Utilities Act.
19 A utility shall be deemed to have complied with the
20 clean coal portfolio standard specified in this subsection
21 (d) if the utility enters into a sourcing agreement as
22 required by this subsection (d).
23 (2) For purposes of this subsection (d), the required
24 execution of sourcing agreements with the initial clean
25 coal facility for a particular year shall be measured as a
26 percentage of the actual amount of electricity
HB1700 Enrolled - 230 - LRB104 08228 SPS 18278 b
1 (megawatt-hours) supplied by the electric utility to
2 eligible retail customers in the planning year ending
3 immediately prior to the agreement's execution. For
4 purposes of this subsection (d), the amount paid per
5 kilowatthour means the total amount paid for electric
6 service expressed on a per kilowatthour basis. For
7 purposes of this subsection (d), the total amount paid for
8 electric service includes without limitation amounts paid
9 for supply, transmission, distribution, surcharges and
10 add-on taxes.
11 Notwithstanding the requirements of this subsection
12 (d), the total amount paid under sourcing agreements with
13 clean coal facilities pursuant to the procurement plan for
14 any given year shall be reduced by an amount necessary to
15 limit the annual estimated average net increase due to the
16 costs of these resources included in the amounts paid by
17 eligible retail customers in connection with electric
18 service to:
19 (A) in 2010, no more than 0.5% of the amount paid
20 per kilowatthour by those customers during the year
21 ending May 31, 2009;
22 (B) in 2011, the greater of an additional 0.5% of
23 the amount paid per kilowatthour by those customers
24 during the year ending May 31, 2010 or 1% of the amount
25 paid per kilowatthour by those customers during the
26 year ending May 31, 2009;
HB1700 Enrolled - 231 - LRB104 08228 SPS 18278 b
1 (C) in 2012, the greater of an additional 0.5% of
2 the amount paid per kilowatthour by those customers
3 during the year ending May 31, 2011 or 1.5% of the
4 amount paid per kilowatthour by those customers during
5 the year ending May 31, 2009;
6 (D) in 2013, the greater of an additional 0.5% of
7 the amount paid per kilowatthour by those customers
8 during the year ending May 31, 2012 or 2% of the amount
9 paid per kilowatthour by those customers during the
10 year ending May 31, 2009; and
11 (E) thereafter, the total amount paid under
12 sourcing agreements with clean coal facilities
13 pursuant to the procurement plan for any single year
14 shall be reduced by an amount necessary to limit the
15 estimated average net increase due to the cost of
16 these resources included in the amounts paid by
17 eligible retail customers in connection with electric
18 service to no more than the greater of (i) 2.015% of
19 the amount paid per kilowatthour by those customers
20 during the year ending May 31, 2009 or (ii) the
21 incremental amount per kilowatthour paid for these
22 resources in 2013. These requirements may be altered
23 only as provided by statute.
24 No later than June 30, 2015, the Commission shall
25 review the limitation on the total amount paid under
26 sourcing agreements, if any, with clean coal facilities
HB1700 Enrolled - 232 - LRB104 08228 SPS 18278 b
1 pursuant to this subsection (d) and report to the General
2 Assembly its findings as to whether that limitation unduly
3 constrains the amount of electricity generated by
4 cost-effective clean coal facilities that is covered by
5 sourcing agreements.
6 (3) Initial clean coal facility. In order to promote
7 development of clean coal facilities in Illinois, each
8 electric utility subject to this Section shall execute a
9 sourcing agreement to source electricity from a proposed
10 clean coal facility in Illinois (the "initial clean coal
11 facility") that will have a nameplate capacity of at least
12 500 MW when commercial operation commences, that has a
13 final Clean Air Act permit on June 1, 2009 (the effective
14 date of Public Act 95-1027), and that will meet the
15 definition of clean coal facility in Section 1-10 of this
16 Act when commercial operation commences. The sourcing
17 agreements with this initial clean coal facility shall be
18 subject to both approval of the initial clean coal
19 facility by the General Assembly and satisfaction of the
20 requirements of paragraph (4) of this subsection (d) and
21 shall be executed within 90 days after any such approval
22 by the General Assembly. The Agency and the Commission
23 shall have authority to inspect all books and records
24 associated with the initial clean coal facility during the
25 term of such a sourcing agreement. A utility's sourcing
26 agreement for electricity produced by the initial clean
HB1700 Enrolled - 233 - LRB104 08228 SPS 18278 b
1 coal facility shall include:
2 (A) a formula contractual price (the "contract
3 price") approved pursuant to paragraph (4) of this
4 subsection (d), which shall:
5 (i) be determined using a cost of service
6 methodology employing either a level or deferred
7 capital recovery component, based on a capital
8 structure consisting of 45% equity and 55% debt,
9 and a return on equity as may be approved by the
10 Federal Energy Regulatory Commission, which in any
11 case may not exceed the lower of 11.5% or the rate
12 of return approved by the General Assembly
13 pursuant to paragraph (4) of this subsection (d);
14 and
15 (ii) provide that all miscellaneous net
16 revenue, including but not limited to net revenue
17 from the sale of emission allowances, if any,
18 substitute natural gas, if any, grants or other
19 support provided by the State of Illinois or the
20 United States Government, firm transmission
21 rights, if any, by-products produced by the
22 facility, energy or capacity derived from the
23 facility and not covered by a sourcing agreement
24 pursuant to paragraph (3) of this subsection (d)
25 or item (5) of subsection (d) of Section 16-115 of
26 the Public Utilities Act, whether generated from
HB1700 Enrolled - 234 - LRB104 08228 SPS 18278 b
1 the synthesis gas derived from coal, from SNG, or
2 from natural gas, shall be credited against the
3 revenue requirement for this initial clean coal
4 facility;
5 (B) power purchase provisions, which shall:
6 (i) provide that the utility party to such
7 sourcing agreement shall pay the contract price
8 for electricity delivered under such sourcing
9 agreement;
10 (ii) require delivery of electricity to the
11 regional transmission organization market of the
12 utility that is party to such sourcing agreement;
13 (iii) require the utility party to such
14 sourcing agreement to buy from the initial clean
15 coal facility in each hour an amount of energy
16 equal to all clean coal energy made available from
17 the initial clean coal facility during such hour
18 times a fraction, the numerator of which is such
19 utility's retail market sales of electricity
20 (expressed in kilowatthours sold) in the State
21 during the prior calendar month and the
22 denominator of which is the total retail market
23 sales of electricity (expressed in kilowatthours
24 sold) in the State by utilities during such prior
25 month and the sales of electricity (expressed in
26 kilowatthours sold) in the State by alternative
HB1700 Enrolled - 235 - LRB104 08228 SPS 18278 b
1 retail electric suppliers during such prior month
2 that are subject to the requirements of this
3 subsection (d) and paragraph (5) of subsection (d)
4 of Section 16-115 of the Public Utilities Act,
5 provided that the amount purchased by the utility
6 in any year will be limited by paragraph (2) of
7 this subsection (d); and
8 (iv) be considered pre-existing contracts in
9 such utility's procurement plans for eligible
10 retail customers;
11 (C) contract for differences provisions, which
12 shall:
13 (i) require the utility party to such sourcing
14 agreement to contract with the initial clean coal
15 facility in each hour with respect to an amount of
16 energy equal to all clean coal energy made
17 available from the initial clean coal facility
18 during such hour times a fraction, the numerator
19 of which is such utility's retail market sales of
20 electricity (expressed in kilowatthours sold) in
21 the utility's service territory in the State
22 during the prior calendar month and the
23 denominator of which is the total retail market
24 sales of electricity (expressed in kilowatthours
25 sold) in the State by utilities during such prior
26 month and the sales of electricity (expressed in
HB1700 Enrolled - 236 - LRB104 08228 SPS 18278 b
1 kilowatthours sold) in the State by alternative
2 retail electric suppliers during such prior month
3 that are subject to the requirements of this
4 subsection (d) and paragraph (5) of subsection (d)
5 of Section 16-115 of the Public Utilities Act,
6 provided that the amount paid by the utility in
7 any year will be limited by paragraph (2) of this
8 subsection (d);
9 (ii) provide that the utility's payment
10 obligation in respect of the quantity of
11 electricity determined pursuant to the preceding
12 clause (i) shall be limited to an amount equal to
13 (1) the difference between the contract price
14 determined pursuant to subparagraph (A) of
15 paragraph (3) of this subsection (d) and the
16 day-ahead price for electricity delivered to the
17 regional transmission organization market of the
18 utility that is party to such sourcing agreement
19 (or any successor delivery point at which such
20 utility's supply obligations are financially
21 settled on an hourly basis) (the "reference
22 price") on the day preceding the day on which the
23 electricity is delivered to the initial clean coal
24 facility busbar, multiplied by (2) the quantity of
25 electricity determined pursuant to the preceding
26 clause (i); and
HB1700 Enrolled - 237 - LRB104 08228 SPS 18278 b
1 (iii) not require the utility to take physical
2 delivery of the electricity produced by the
3 facility;
4 (D) general provisions, which shall:
5 (i) specify a term of no more than 30 years,
6 commencing on the commercial operation date of the
7 facility;
8 (ii) provide that utilities shall maintain
9 adequate records documenting purchases under the
10 sourcing agreements entered into to comply with
11 this subsection (d) and shall file an accounting
12 with the load forecast that must be filed with the
13 Agency by July 15 of each year, in accordance with
14 subsection (d) of Section 16-111.5 of the Public
15 Utilities Act;
16 (iii) provide that all costs associated with
17 the initial clean coal facility will be
18 periodically reported to the Federal Energy
19 Regulatory Commission and to purchasers in
20 accordance with applicable laws governing
21 cost-based wholesale power contracts;
22 (iv) permit the Illinois Power Agency to
23 assume ownership of the initial clean coal
24 facility, without monetary consideration and
25 otherwise on reasonable terms acceptable to the
26 Agency, if the Agency so requests no less than 3
HB1700 Enrolled - 238 - LRB104 08228 SPS 18278 b
1 years prior to the end of the stated contract
2 term;
3 (v) require the owner of the initial clean
4 coal facility to provide documentation to the
5 Commission each year, starting in the facility's
6 first year of commercial operation, accurately
7 reporting the quantity of carbon emissions from
8 the facility that have been captured and
9 sequestered and report any quantities of carbon
10 released from the site or sites at which carbon
11 emissions were sequestered in prior years, based
12 on continuous monitoring of such sites. If, in any
13 year after the first year of commercial operation,
14 the owner of the facility fails to demonstrate
15 that the initial clean coal facility captured and
16 sequestered at least 50% of the total carbon
17 emissions that the facility would otherwise emit
18 or that sequestration of emissions from prior
19 years has failed, resulting in the release of
20 carbon dioxide into the atmosphere, the owner of
21 the facility must offset excess emissions. Any
22 such carbon offsets must be permanent, additional,
23 verifiable, real, located within the State of
24 Illinois, and legally and practicably enforceable.
25 The cost of such offsets for the facility that are
26 not recoverable shall not exceed $15 million in
HB1700 Enrolled - 239 - LRB104 08228 SPS 18278 b
1 any given year. No costs of any such purchases of
2 carbon offsets may be recovered from a utility or
3 its customers. All carbon offsets purchased for
4 this purpose and any carbon emission credits
5 associated with sequestration of carbon from the
6 facility must be permanently retired. The initial
7 clean coal facility shall not forfeit its
8 designation as a clean coal facility if the
9 facility fails to fully comply with the applicable
10 carbon sequestration requirements in any given
11 year, provided the requisite offsets are
12 purchased. However, the Attorney General, on
13 behalf of the People of the State of Illinois, may
14 specifically enforce the facility's sequestration
15 requirement and the other terms of this contract
16 provision. Compliance with the sequestration
17 requirements and offset purchase requirements
18 specified in paragraph (3) of this subsection (d)
19 shall be reviewed annually by an independent
20 expert retained by the owner of the initial clean
21 coal facility, with the advance written approval
22 of the Attorney General. The Commission may, in
23 the course of the review specified in item (vii),
24 reduce the allowable return on equity for the
25 facility if the facility willfully fails to comply
26 with the carbon capture and sequestration
HB1700 Enrolled - 240 - LRB104 08228 SPS 18278 b
1 requirements set forth in this item (v);
2 (vi) include limits on, and accordingly
3 provide for modification of, the amount the
4 utility is required to source under the sourcing
5 agreement consistent with paragraph (2) of this
6 subsection (d);
7 (vii) require Commission review: (1) to
8 determine the justness, reasonableness, and
9 prudence of the inputs to the formula referenced
10 in subparagraphs (A)(i) through (A)(iii) of
11 paragraph (3) of this subsection (d), prior to an
12 adjustment in those inputs including, without
13 limitation, the capital structure and return on
14 equity, fuel costs, and other operations and
15 maintenance costs and (2) to approve the costs to
16 be passed through to customers under the sourcing
17 agreement by which the utility satisfies its
18 statutory obligations. Commission review shall
19 occur no less than every 3 years, regardless of
20 whether any adjustments have been proposed, and
21 shall be completed within 9 months;
22 (viii) limit the utility's obligation to such
23 amount as the utility is allowed to recover
24 through tariffs filed with the Commission,
25 provided that neither the clean coal facility nor
26 the utility waives any right to assert federal
HB1700 Enrolled - 241 - LRB104 08228 SPS 18278 b
1 pre-emption or any other argument in response to a
2 purported disallowance of recovery costs;
3 (ix) limit the utility's or alternative retail
4 electric supplier's obligation to incur any
5 liability until such time as the facility is in
6 commercial operation and generating power and
7 energy and such power and energy is being
8 delivered to the facility busbar;
9 (x) provide that the owner or owners of the
10 initial clean coal facility, which is the
11 counterparty to such sourcing agreement, shall
12 have the right from time to time to elect whether
13 the obligations of the utility party thereto shall
14 be governed by the power purchase provisions or
15 the contract for differences provisions;
16 (xi) append documentation showing that the
17 formula rate and contract, insofar as they relate
18 to the power purchase provisions, have been
19 approved by the Federal Energy Regulatory
20 Commission pursuant to Section 205 of the Federal
21 Power Act;
22 (xii) provide that any changes to the terms of
23 the contract, insofar as such changes relate to
24 the power purchase provisions, are subject to
25 review under the public interest standard applied
26 by the Federal Energy Regulatory Commission
HB1700 Enrolled - 242 - LRB104 08228 SPS 18278 b
1 pursuant to Sections 205 and 206 of the Federal
2 Power Act; and
3 (xiii) conform with customary lender
4 requirements in power purchase agreements used as
5 the basis for financing non-utility generators.
6 (4) Effective date of sourcing agreements with the
7 initial clean coal facility. Any proposed sourcing
8 agreement with the initial clean coal facility shall not
9 become effective unless the following reports are prepared
10 and submitted and authorizations and approvals obtained:
11 (i) Facility cost report. The owner of the initial
12 clean coal facility shall submit to the Commission,
13 the Agency, and the General Assembly a front-end
14 engineering and design study, a facility cost report,
15 method of financing (including but not limited to
16 structure and associated costs), and an operating and
17 maintenance cost quote for the facility (collectively
18 "facility cost report"), which shall be prepared in
19 accordance with the requirements of this paragraph (4)
20 of subsection (d) of this Section, and shall provide
21 the Commission and the Agency access to the work
22 papers, relied upon documents, and any other backup
23 documentation related to the facility cost report.
24 (ii) Commission report. Within 6 months following
25 receipt of the facility cost report, the Commission,
26 in consultation with the Agency, shall submit a report
HB1700 Enrolled - 243 - LRB104 08228 SPS 18278 b
1 to the General Assembly setting forth its analysis of
2 the facility cost report. Such report shall include,
3 but not be limited to, a comparison of the costs
4 associated with electricity generated by the initial
5 clean coal facility to the costs associated with
6 electricity generated by other types of generation
7 facilities, an analysis of the rate impacts on
8 residential and small business customers over the life
9 of the sourcing agreements, and an analysis of the
10 likelihood that the initial clean coal facility will
11 commence commercial operation by and be delivering
12 power to the facility's busbar by 2016. To assist in
13 the preparation of its report, the Commission, in
14 consultation with the Agency, may hire one or more
15 experts or consultants, the costs of which shall be
16 paid for by the owner of the initial clean coal
17 facility. The Commission and Agency may begin the
18 process of selecting such experts or consultants prior
19 to receipt of the facility cost report.
20 (iii) General Assembly approval. The proposed
21 sourcing agreements shall not take effect unless,
22 based on the facility cost report and the Commission's
23 report, the General Assembly enacts authorizing
24 legislation approving (A) the projected price, stated
25 in cents per kilowatthour, to be charged for
26 electricity generated by the initial clean coal
HB1700 Enrolled - 244 - LRB104 08228 SPS 18278 b
1 facility, (B) the projected impact on residential and
2 small business customers' bills over the life of the
3 sourcing agreements, and (C) the maximum allowable
4 return on equity for the project; and
5 (iv) Commission review. If the General Assembly
6 enacts authorizing legislation pursuant to
7 subparagraph (iii) approving a sourcing agreement, the
8 Commission shall, within 90 days of such enactment,
9 complete a review of such sourcing agreement. During
10 such time period, the Commission shall implement any
11 directive of the General Assembly, resolve any
12 disputes between the parties to the sourcing agreement
13 concerning the terms of such agreement, approve the
14 form of such agreement, and issue an order finding
15 that the sourcing agreement is prudent and reasonable.
16 The facility cost report shall be prepared as follows:
17 (A) The facility cost report shall be prepared by
18 duly licensed engineering and construction firms
19 detailing the estimated capital costs payable to one
20 or more contractors or suppliers for the engineering,
21 procurement and construction of the components
22 comprising the initial clean coal facility and the
23 estimated costs of operation and maintenance of the
24 facility. The facility cost report shall include:
25 (i) an estimate of the capital cost of the
26 core plant based on one or more front end
HB1700 Enrolled - 245 - LRB104 08228 SPS 18278 b
1 engineering and design studies for the
2 gasification island and related facilities. The
3 core plant shall include all civil, structural,
4 mechanical, electrical, control, and safety
5 systems.
6 (ii) an estimate of the capital cost of the
7 balance of the plant, including any capital costs
8 associated with sequestration of carbon dioxide
9 emissions and all interconnects and interfaces
10 required to operate the facility, such as
11 transmission of electricity, construction or
12 backfeed power supply, pipelines to transport
13 substitute natural gas or carbon dioxide, potable
14 water supply, natural gas supply, water supply,
15 water discharge, landfill, access roads, and coal
16 delivery.
17 The quoted construction costs shall be expressed
18 in nominal dollars as of the date that the quote is
19 prepared and shall include capitalized financing costs
20 during construction, taxes, insurance, and other
21 owner's costs, and an assumed escalation in materials
22 and labor beyond the date as of which the construction
23 cost quote is expressed.
24 (B) The front end engineering and design study for
25 the gasification island and the cost study for the
26 balance of plant shall include sufficient design work
HB1700 Enrolled - 246 - LRB104 08228 SPS 18278 b
1 to permit quantification of major categories of
2 materials, commodities and labor hours, and receipt of
3 quotes from vendors of major equipment required to
4 construct and operate the clean coal facility.
5 (C) The facility cost report shall also include an
6 operating and maintenance cost quote that will provide
7 the estimated cost of delivered fuel, personnel,
8 maintenance contracts, chemicals, catalysts,
9 consumables, spares, and other fixed and variable
10 operations and maintenance costs. The delivered fuel
11 cost estimate will be provided by a recognized third
12 party expert or experts in the fuel and transportation
13 industries. The balance of the operating and
14 maintenance cost quote, excluding delivered fuel
15 costs, will be developed based on the inputs provided
16 by duly licensed engineering and construction firms
17 performing the construction cost quote, potential
18 vendors under long-term service agreements and plant
19 operating agreements, or recognized third party plant
20 operator or operators.
21 The operating and maintenance cost quote
22 (including the cost of the front end engineering and
23 design study) shall be expressed in nominal dollars as
24 of the date that the quote is prepared and shall
25 include taxes, insurance, and other owner's costs, and
26 an assumed escalation in materials and labor beyond
HB1700 Enrolled - 247 - LRB104 08228 SPS 18278 b
1 the date as of which the operating and maintenance
2 cost quote is expressed.
3 (D) The facility cost report shall also include an
4 analysis of the initial clean coal facility's ability
5 to deliver power and energy into the applicable
6 regional transmission organization markets and an
7 analysis of the expected capacity factor for the
8 initial clean coal facility.
9 (E) Amounts paid to third parties unrelated to the
10 owner or owners of the initial clean coal facility to
11 prepare the core plant construction cost quote,
12 including the front end engineering and design study,
13 and the operating and maintenance cost quote will be
14 reimbursed through Coal Development Bonds.
15 (5) Re-powering and retrofitting coal-fired power
16 plants previously owned by Illinois utilities to qualify
17 as clean coal facilities. During the 2009 procurement
18 planning process and thereafter, the Agency and the
19 Commission shall consider sourcing agreements covering
20 electricity generated by power plants that were previously
21 owned by Illinois utilities and that have been or will be
22 converted into clean coal facilities, as defined by
23 Section 1-10 of this Act. Pursuant to such procurement
24 planning process, the owners of such facilities may
25 propose to the Agency sourcing agreements with utilities
26 and alternative retail electric suppliers required to
HB1700 Enrolled - 248 - LRB104 08228 SPS 18278 b
1 comply with subsection (d) of this Section and item (5) of
2 subsection (d) of Section 16-115 of the Public Utilities
3 Act, covering electricity generated by such facilities. In
4 the case of sourcing agreements that are power purchase
5 agreements, the contract price for electricity sales shall
6 be established on a cost of service basis. In the case of
7 sourcing agreements that are contracts for differences,
8 the contract price from which the reference price is
9 subtracted shall be established on a cost of service
10 basis. The Agency and the Commission may approve any such
11 utility sourcing agreements that do not exceed cost-based
12 benchmarks developed by the procurement administrator, in
13 consultation with the Commission staff, Agency staff and
14 the procurement monitor, subject to Commission review and
15 approval. The Commission shall have authority to inspect
16 all books and records associated with these clean coal
17 facilities during the term of any such contract.
18 (6) Costs incurred under this subsection (d) or
19 pursuant to a contract entered into under this subsection
20 (d) shall be deemed prudently incurred and reasonable in
21 amount and the electric utility shall be entitled to full
22 cost recovery pursuant to the tariffs filed with the
23 Commission.
24 (d-5) Zero emission standard.
25 (1) Beginning with the delivery year commencing on
26 June 1, 2017, the Agency shall, for electric utilities
HB1700 Enrolled - 249 - LRB104 08228 SPS 18278 b
1 that serve at least 100,000 retail customers in this
2 State, procure contracts with zero emission facilities
3 that are reasonably capable of generating cost-effective
4 zero emission credits in an amount approximately equal to
5 16% of the actual amount of electricity delivered by each
6 electric utility to retail customers in the State during
7 calendar year 2014. For an electric utility serving fewer
8 than 100,000 retail customers in this State that
9 requested, under Section 16-111.5 of the Public Utilities
10 Act, that the Agency procure power and energy for all or a
11 portion of the utility's Illinois load for the delivery
12 year commencing June 1, 2016, the Agency shall procure
13 contracts with zero emission facilities that are
14 reasonably capable of generating cost-effective zero
15 emission credits in an amount approximately equal to 16%
16 of the portion of power and energy to be procured by the
17 Agency for the utility. The duration of the contracts
18 procured under this subsection (d-5) shall be for a term
19 of 10 years ending May 31, 2027. The quantity of zero
20 emission credits to be procured under the contracts shall
21 be all of the zero emission credits generated by the zero
22 emission facility in each delivery year; however, if the
23 zero emission facility is owned by more than one entity,
24 then the quantity of zero emission credits to be procured
25 under the contracts shall be the amount of zero emission
26 credits that are generated from the portion of the zero
HB1700 Enrolled - 250 - LRB104 08228 SPS 18278 b
1 emission facility that is owned by the winning supplier.
2 The 16% value identified in this paragraph (1) is the
3 average of the percentage targets in subparagraph (B) of
4 paragraph (1) of subsection (c) of this Section for the 5
5 delivery years beginning June 1, 2017.
6 The procurement process shall be subject to the
7 following provisions:
8 (A) Those zero emission facilities that intend to
9 participate in the procurement shall submit to the
10 Agency the following eligibility information for each
11 zero emission facility on or before the date
12 established by the Agency:
13 (i) the in-service date and remaining useful
14 life of the zero emission facility;
15 (ii) the amount of power generated annually
16 for each of the years 2005 through 2015, and the
17 projected zero emission credits to be generated
18 over the remaining useful life of the zero
19 emission facility, which shall be used to
20 determine the capability of each facility;
21 (iii) the annual zero emission facility cost
22 projections, expressed on a per megawatthour
23 basis, over the next 6 delivery years, which shall
24 include the following: operation and maintenance
25 expenses; fully allocated overhead costs, which
26 shall be allocated using the methodology developed
HB1700 Enrolled - 251 - LRB104 08228 SPS 18278 b
1 by the Institute for Nuclear Power Operations;
2 fuel expenditures; non-fuel capital expenditures;
3 spent fuel expenditures; a return on working
4 capital; the cost of operational and market risks
5 that could be avoided by ceasing operation; and
6 any other costs necessary for continued
7 operations, provided that "necessary" means, for
8 purposes of this item (iii), that the costs could
9 reasonably be avoided only by ceasing operations
10 of the zero emission facility; and
11 (iv) a commitment to continue operating, for
12 the duration of the contract or contracts executed
13 under the procurement held under this subsection
14 (d-5), the zero emission facility that produces
15 the zero emission credits to be procured in the
16 procurement.
17 The information described in item (iii) of this
18 subparagraph (A) may be submitted on a confidential
19 basis and shall be treated and maintained by the
20 Agency, the procurement administrator, and the
21 Commission as confidential and proprietary and exempt
22 from disclosure under subparagraphs (a) and (g) of
23 paragraph (1) of Section 7 of the Freedom of
24 Information Act. The Office of Attorney General shall
25 have access to, and maintain the confidentiality of,
26 such information pursuant to Section 6.5 of the
HB1700 Enrolled - 252 - LRB104 08228 SPS 18278 b
1 Attorney General Act.
2 (B) The price for each zero emission credit
3 procured under this subsection (d-5) for each delivery
4 year shall be in an amount that equals the Social Cost
5 of Carbon, expressed on a price per megawatthour
6 basis. However, to ensure that the procurement remains
7 affordable to retail customers in this State if
8 electricity prices increase, the price in an
9 applicable delivery year shall be reduced below the
10 Social Cost of Carbon by the amount ("Price
11 Adjustment") by which the market price index for the
12 applicable delivery year exceeds the baseline market
13 price index for the consecutive 12-month period ending
14 May 31, 2016. If the Price Adjustment is greater than
15 or equal to the Social Cost of Carbon in an applicable
16 delivery year, then no payments shall be due in that
17 delivery year. The components of this calculation are
18 defined as follows:
19 (i) Social Cost of Carbon: The Social Cost of
20 Carbon is $16.50 per megawatthour, which is based
21 on the U.S. Interagency Working Group on Social
22 Cost of Carbon's price in the August 2016
23 Technical Update using a 3% discount rate,
24 adjusted for inflation for each year of the
25 program. Beginning with the delivery year
26 commencing June 1, 2023, the price per
HB1700 Enrolled - 253 - LRB104 08228 SPS 18278 b
1 megawatthour shall increase by $1 per
2 megawatthour, and continue to increase by an
3 additional $1 per megawatthour each delivery year
4 thereafter.
5 (ii) Baseline market price index: The baseline
6 market price index for the consecutive 12-month
7 period ending May 31, 2016 is $31.40 per
8 megawatthour, which is based on the sum of (aa)
9 the average day-ahead energy price across all
10 hours of such 12-month period at the PJM
11 Interconnection LLC Northern Illinois Hub, (bb)
12 50% multiplied by the Base Residual Auction, or
13 its successor, capacity price for the rest of the
14 RTO zone group determined by PJM Interconnection
15 LLC, divided by 24 hours per day, and (cc) 50%
16 multiplied by the Planning Resource Auction, or
17 its successor, capacity price for Zone 4
18 determined by the Midcontinent Independent System
19 Operator, Inc., divided by 24 hours per day.
20 (iii) Market price index: The market price
21 index for a delivery year shall be the sum of
22 projected energy prices and projected capacity
23 prices determined as follows:
24 (aa) Projected energy prices: the
25 projected energy prices for the applicable
26 delivery year shall be calculated once for the
HB1700 Enrolled - 254 - LRB104 08228 SPS 18278 b
1 year using the forward market price for the
2 PJM Interconnection, LLC Northern Illinois
3 Hub. The forward market price shall be
4 calculated as follows: the energy forward
5 prices for each month of the applicable
6 delivery year averaged for each trade date
7 during the calendar year immediately preceding
8 that delivery year to produce a single energy
9 forward price for the delivery year. The
10 forward market price calculation shall use
11 data published by the Intercontinental
12 Exchange, or its successor.
13 (bb) Projected capacity prices:
14 (I) For the delivery years commencing
15 June 1, 2017, June 1, 2018, and June 1,
16 2019, the projected capacity price shall
17 be equal to the sum of (1) 50% multiplied
18 by the Base Residual Auction, or its
19 successor, price for the rest of the RTO
20 zone group as determined by PJM
21 Interconnection LLC, divided by 24 hours
22 per day and, (2) 50% multiplied by the
23 resource auction price determined in the
24 resource auction administered by the
25 Midcontinent Independent System Operator,
26 Inc., in which the largest percentage of
HB1700 Enrolled - 255 - LRB104 08228 SPS 18278 b
1 load cleared for Local Resource Zone 4,
2 divided by 24 hours per day, and where
3 such price is determined by the
4 Midcontinent Independent System Operator,
5 Inc.
6 (II) For the delivery year commencing
7 June 1, 2020, and each year thereafter,
8 the projected capacity price shall be
9 equal to the sum of (1) 50% multiplied by
10 the Base Residual Auction, or its
11 successor, price for the ComEd zone as
12 determined by PJM Interconnection LLC,
13 divided by 24 hours per day, and (2) 50%
14 multiplied by the resource auction price
15 determined in the resource auction
16 administered by the Midcontinent
17 Independent System Operator, Inc., in
18 which the largest percentage of load
19 cleared for Local Resource Zone 4, divided
20 by 24 hours per day, and where such price
21 is determined by the Midcontinent
22 Independent System Operator, Inc.
23 For purposes of this subsection (d-5):
24 "Rest of the RTO" and "ComEd Zone" shall have
25 the meaning ascribed to them by PJM
26 Interconnection, LLC.
HB1700 Enrolled - 256 - LRB104 08228 SPS 18278 b
1 "RTO" means regional transmission
2 organization.
3 (C) No later than 45 days after June 1, 2017 (the
4 effective date of Public Act 99-906), the Agency shall
5 publish its proposed zero emission standard
6 procurement plan. The plan shall be consistent with
7 the provisions of this paragraph (1) and shall provide
8 that winning bids shall be selected based on public
9 interest criteria that include, but are not limited
10 to, minimizing carbon dioxide emissions that result
11 from electricity consumed in Illinois and minimizing
12 sulfur dioxide, nitrogen oxide, and particulate matter
13 emissions that adversely affect the citizens of this
14 State. In particular, the selection of winning bids
15 shall take into account the incremental environmental
16 benefits resulting from the procurement, such as any
17 existing environmental benefits that are preserved by
18 the procurements held under Public Act 99-906 and
19 would cease to exist if the procurements were not
20 held, including the preservation of zero emission
21 facilities. The plan shall also describe in detail how
22 each public interest factor shall be considered and
23 weighted in the bid selection process to ensure that
24 the public interest criteria are applied to the
25 procurement and given full effect.
26 For purposes of developing the plan, the Agency
HB1700 Enrolled - 257 - LRB104 08228 SPS 18278 b
1 shall consider any reports issued by a State agency,
2 board, or commission under House Resolution 1146 of
3 the 98th General Assembly and paragraph (4) of
4 subsection (d) of this Section, as well as publicly
5 available analyses and studies performed by or for
6 regional transmission organizations that serve the
7 State and their independent market monitors.
8 Upon publishing of the zero emission standard
9 procurement plan, copies of the plan shall be posted
10 and made publicly available on the Agency's website.
11 All interested parties shall have 10 days following
12 the date of posting to provide comment to the Agency on
13 the plan. All comments shall be posted to the Agency's
14 website. Following the end of the comment period, but
15 no more than 60 days later than June 1, 2017 (the
16 effective date of Public Act 99-906), the Agency shall
17 revise the plan as necessary based on the comments
18 received and file its zero emission standard
19 procurement plan with the Commission.
20 If the Commission determines that the plan will
21 result in the procurement of cost-effective zero
22 emission credits, then the Commission shall, after
23 notice and hearing, but no later than 45 days after the
24 Agency filed the plan, approve the plan or approve
25 with modification. For purposes of this subsection
26 (d-5), "cost effective" means the projected costs of
HB1700 Enrolled - 258 - LRB104 08228 SPS 18278 b
1 procuring zero emission credits from zero emission
2 facilities do not cause the limit stated in paragraph
3 (2) of this subsection to be exceeded.
4 (C-5) As part of the Commission's review and
5 acceptance or rejection of the procurement results,
6 the Commission shall, in its public notice of
7 successful bidders:
8 (i) identify how the winning bids satisfy the
9 public interest criteria described in subparagraph
10 (C) of this paragraph (1) of minimizing carbon
11 dioxide emissions that result from electricity
12 consumed in Illinois and minimizing sulfur
13 dioxide, nitrogen oxide, and particulate matter
14 emissions that adversely affect the citizens of
15 this State;
16 (ii) specifically address how the selection of
17 winning bids takes into account the incremental
18 environmental benefits resulting from the
19 procurement, including any existing environmental
20 benefits that are preserved by the procurements
21 held under Public Act 99-906 and would have ceased
22 to exist if the procurements had not been held,
23 such as the preservation of zero emission
24 facilities;
25 (iii) quantify the environmental benefit of
26 preserving the resources identified in item (ii)
HB1700 Enrolled - 259 - LRB104 08228 SPS 18278 b
1 of this subparagraph (C-5), including the
2 following:
3 (aa) the value of avoided greenhouse gas
4 emissions measured as the product of the zero
5 emission facilities' output over the contract
6 term multiplied by the U.S. Environmental
7 Protection Agency eGrid subregion carbon
8 dioxide emission rate and the U.S. Interagency
9 Working Group on Social Cost of Carbon's price
10 in the August 2016 Technical Update using a 3%
11 discount rate, adjusted for inflation for each
12 delivery year; and
13 (bb) the costs of replacement with other
14 zero carbon dioxide resources, including wind
15 and photovoltaic, based upon the simple
16 average of the following:
17 (I) the price, or if there is more
18 than one price, the average of the prices,
19 paid for renewable energy credits from new
20 utility-scale wind projects in the
21 procurement events specified in item (i)
22 of subparagraph (G) of paragraph (1) of
23 subsection (c) of this Section; and
24 (II) the price, or if there is more
25 than one price, the average of the prices,
26 paid for renewable energy credits from new
HB1700 Enrolled - 260 - LRB104 08228 SPS 18278 b
1 utility-scale solar projects and
2 brownfield site photovoltaic projects in
3 the procurement events specified in item
4 (ii) of subparagraph (G) of paragraph (1)
5 of subsection (c) of this Section and,
6 after January 1, 2015, renewable energy
7 credits from photovoltaic distributed
8 generation projects in procurement events
9 held under subsection (c) of this Section.
10 Each utility shall enter into binding contractual
11 arrangements with the winning suppliers.
12 The procurement described in this subsection
13 (d-5), including, but not limited to, the execution of
14 all contracts procured, shall be completed no later
15 than May 10, 2017. Based on the effective date of
16 Public Act 99-906, the Agency and Commission may, as
17 appropriate, modify the various dates and timelines
18 under this subparagraph and subparagraphs (C) and (D)
19 of this paragraph (1). The procurement and plan
20 approval processes required by this subsection (d-5)
21 shall be conducted in conjunction with the procurement
22 and plan approval processes required by subsection (c)
23 of this Section and Section 16-111.5 of the Public
24 Utilities Act, to the extent practicable.
25 Notwithstanding whether a procurement event is
26 conducted under Section 16-111.5 of the Public
HB1700 Enrolled - 261 - LRB104 08228 SPS 18278 b
1 Utilities Act, the Agency shall immediately initiate a
2 procurement process on June 1, 2017 (the effective
3 date of Public Act 99-906).
4 (D) Following the procurement event described in
5 this paragraph (1) and consistent with subparagraph
6 (B) of this paragraph (1), the Agency shall calculate
7 the payments to be made under each contract for the
8 next delivery year based on the market price index for
9 that delivery year. The Agency shall publish the
10 payment calculations no later than May 25, 2017 and
11 every May 25 thereafter.
12 (E) Notwithstanding the requirements of this
13 subsection (d-5), the contracts executed under this
14 subsection (d-5) shall provide that the zero emission
15 facility may, as applicable, suspend or terminate
16 performance under the contracts in the following
17 instances:
18 (i) A zero emission facility shall be excused
19 from its performance under the contract for any
20 cause beyond the control of the resource,
21 including, but not restricted to, acts of God,
22 flood, drought, earthquake, storm, fire,
23 lightning, epidemic, war, riot, civil disturbance
24 or disobedience, labor dispute, labor or material
25 shortage, sabotage, acts of public enemy,
26 explosions, orders, regulations or restrictions
HB1700 Enrolled - 262 - LRB104 08228 SPS 18278 b
1 imposed by governmental, military, or lawfully
2 established civilian authorities, which, in any of
3 the foregoing cases, by exercise of commercially
4 reasonable efforts the zero emission facility
5 could not reasonably have been expected to avoid,
6 and which, by the exercise of commercially
7 reasonable efforts, it has been unable to
8 overcome. In such event, the zero emission
9 facility shall be excused from performance for the
10 duration of the event, including, but not limited
11 to, delivery of zero emission credits, and no
12 payment shall be due to the zero emission facility
13 during the duration of the event.
14 (ii) A zero emission facility shall be
15 permitted to terminate the contract if legislation
16 is enacted into law by the General Assembly that
17 imposes or authorizes a new tax, special
18 assessment, or fee on the generation of
19 electricity, the ownership or leasehold of a
20 generating unit, or the privilege or occupation of
21 such generation, ownership, or leasehold of
22 generation units by a zero emission facility.
23 However, the provisions of this item (ii) do not
24 apply to any generally applicable tax, special
25 assessment or fee, or requirements imposed by
26 federal law.
HB1700 Enrolled - 263 - LRB104 08228 SPS 18278 b
1 (iii) A zero emission facility shall be
2 permitted to terminate the contract in the event
3 that the resource requires capital expenditures in
4 excess of $40,000,000 that were neither known nor
5 reasonably foreseeable at the time it executed the
6 contract and that a prudent owner or operator of
7 such resource would not undertake.
8 (iv) A zero emission facility shall be
9 permitted to terminate the contract in the event
10 the Nuclear Regulatory Commission terminates the
11 resource's license.
12 (F) If the zero emission facility elects to
13 terminate a contract under subparagraph (E) of this
14 paragraph (1), then the Commission shall reopen the
15 docket in which the Commission approved the zero
16 emission standard procurement plan under subparagraph
17 (C) of this paragraph (1) and, after notice and
18 hearing, enter an order acknowledging the contract
19 termination election if such termination is consistent
20 with the provisions of this subsection (d-5).
21 (2) For purposes of this subsection (d-5), the amount
22 paid per kilowatthour means the total amount paid for
23 electric service expressed on a per kilowatthour basis.
24 For purposes of this subsection (d-5), the total amount
25 paid for electric service includes, without limitation,
26 amounts paid for supply, transmission, distribution,
HB1700 Enrolled - 264 - LRB104 08228 SPS 18278 b
1 surcharges, and add-on taxes.
2 Notwithstanding the requirements of this subsection
3 (d-5), the contracts executed under this subsection (d-5)
4 shall provide that the total of zero emission credits
5 procured under a procurement plan shall be subject to the
6 limitations of this paragraph (2). For each delivery year,
7 the contractual volume receiving payments in such year
8 shall be reduced for all retail customers based on the
9 amount necessary to limit the net increase that delivery
10 year to the costs of those credits included in the amounts
11 paid by eligible retail customers in connection with
12 electric service to no more than 1.65% of the amount paid
13 per kilowatthour by eligible retail customers during the
14 year ending May 31, 2009. The result of this computation
15 shall apply to and reduce the procurement for all retail
16 customers, and all those customers shall pay the same
17 single, uniform cents per kilowatthour charge under
18 subsection (k) of Section 16-108 of the Public Utilities
19 Act. To arrive at a maximum dollar amount of zero emission
20 credits to be paid for the particular delivery year, the
21 resulting per kilowatthour amount shall be applied to the
22 actual amount of kilowatthours of electricity delivered by
23 the electric utility in the delivery year immediately
24 prior to the procurement, to all retail customers in its
25 service territory. Unpaid contractual volume for any
26 delivery year shall be paid in any subsequent delivery
HB1700 Enrolled - 265 - LRB104 08228 SPS 18278 b
1 year in which such payments can be made without exceeding
2 the amount specified in this paragraph (2). The
3 calculations required by this paragraph (2) shall be made
4 only once for each procurement plan year. Once the
5 determination as to the amount of zero emission credits to
6 be paid is made based on the calculations set forth in this
7 paragraph (2), no subsequent rate impact determinations
8 shall be made and no adjustments to those contract amounts
9 shall be allowed. All costs incurred under those contracts
10 and in implementing this subsection (d-5) shall be
11 recovered by the electric utility as provided in this
12 Section.
13 No later than June 30, 2019, the Commission shall
14 review the limitation on the amount of zero emission
15 credits procured under this subsection (d-5) and report to
16 the General Assembly its findings as to whether that
17 limitation unduly constrains the procurement of
18 cost-effective zero emission credits.
19 (3) Six years after the execution of a contract under
20 this subsection (d-5), the Agency shall determine whether
21 the actual zero emission credit payments received by the
22 supplier over the 6-year period exceed the Average ZEC
23 Payment. In addition, at the end of the term of a contract
24 executed under this subsection (d-5), or at the time, if
25 any, a zero emission facility's contract is terminated
26 under subparagraph (E) of paragraph (1) of this subsection
HB1700 Enrolled - 266 - LRB104 08228 SPS 18278 b
1 (d-5), then the Agency shall determine whether the actual
2 zero emission credit payments received by the supplier
3 over the term of the contract exceed the Average ZEC
4 Payment, after taking into account any amounts previously
5 credited back to the utility under this paragraph (3). If
6 the Agency determines that the actual zero emission credit
7 payments received by the supplier over the relevant period
8 exceed the Average ZEC Payment, then the supplier shall
9 credit the difference back to the utility. The amount of
10 the credit shall be remitted to the applicable electric
11 utility no later than 120 days after the Agency's
12 determination, which the utility shall reflect as a credit
13 on its retail customer bills as soon as practicable;
14 however, the credit remitted to the utility shall not
15 exceed the total amount of payments received by the
16 facility under its contract.
17 For purposes of this Section, the Average ZEC Payment
18 shall be calculated by multiplying the quantity of zero
19 emission credits delivered under the contract times the
20 average contract price. The average contract price shall
21 be determined by subtracting the amount calculated under
22 subparagraph (B) of this paragraph (3) from the amount
23 calculated under subparagraph (A) of this paragraph (3),
24 as follows:
25 (A) The average of the Social Cost of Carbon, as
26 defined in subparagraph (B) of paragraph (1) of this
HB1700 Enrolled - 267 - LRB104 08228 SPS 18278 b
1 subsection (d-5), during the term of the contract.
2 (B) The average of the market price indices, as
3 defined in subparagraph (B) of paragraph (1) of this
4 subsection (d-5), during the term of the contract,
5 minus the baseline market price index, as defined in
6 subparagraph (B) of paragraph (1) of this subsection
7 (d-5).
8 If the subtraction yields a negative number, then the
9 Average ZEC Payment shall be zero.
10 (4) Cost-effective zero emission credits procured from
11 zero emission facilities shall satisfy the applicable
12 definitions set forth in Section 1-10 of this Act.
13 (5) The electric utility shall retire all zero
14 emission credits used to comply with the requirements of
15 this subsection (d-5).
16 (6) Electric utilities shall be entitled to recover
17 all of the costs associated with the procurement of zero
18 emission credits through an automatic adjustment clause
19 tariff in accordance with subsection (k) and (m) of
20 Section 16-108 of the Public Utilities Act, and the
21 contracts executed under this subsection (d-5) shall
22 provide that the utilities' payment obligations under such
23 contracts shall be reduced if an adjustment is required
24 under subsection (m) of Section 16-108 of the Public
25 Utilities Act.
26 (7) This subsection (d-5) shall become inoperative on
HB1700 Enrolled - 268 - LRB104 08228 SPS 18278 b
1 January 1, 2028.
2 (d-10) Nuclear Plant Assistance; carbon mitigation
3 credits.
4 (1) The General Assembly finds:
5 (A) The health, welfare, and prosperity of all
6 Illinois citizens require that the State of Illinois act
7 to avoid and not increase carbon emissions from electric
8 generation sources while continuing to ensure affordable,
9 stable, and reliable electricity to all citizens.
10 (B) Absent immediate action by the State to preserve
11 existing carbon-free energy resources, those resources may
12 retire, and the electric generation needs of Illinois'
13 retail customers may be met instead by facilities that
14 emit significant amounts of carbon pollution and other
15 harmful air pollutants at a high social and economic cost
16 until Illinois is able to develop other forms of clean
17 energy.
18 (C) The General Assembly finds that nuclear power
19 generation is necessary for the State's transition to 100%
20 clean energy, and ensuring continued operation of nuclear
21 plants advances environmental and public health interests
22 through providing carbon-free electricity while reducing
23 the air pollution profile of the Illinois energy
24 generation fleet.
25 (D) The clean energy attributes of nuclear generation
26 facilities support the State in its efforts to achieve
HB1700 Enrolled - 269 - LRB104 08228 SPS 18278 b
1 100% clean energy.
2 (E) The State currently invests in various forms of
3 clean energy, including, but not limited to, renewable
4 energy, energy efficiency, and low-emission vehicles,
5 among others.
6 (F) The Environmental Protection Agency commissioned
7 an independent audit which provided a detailed assessment
8 of the financial condition of the Illinois nuclear fleet
9 to evaluate its financial viability and whether the
10 environmental benefits of such resources were at risk. The
11 report identified the risk of losing the environmental
12 benefits of several specific nuclear units. The report
13 also identified that the LaSalle County Generating Station
14 will continue to operate through 2026 and therefore is not
15 eligible to participate in the carbon mitigation credit
16 program.
17 (G) Nuclear plants provide carbon-free energy, which
18 helps to avoid many health-related negative impacts for
19 Illinois residents.
20 (H) The procurement of carbon mitigation credits
21 representing the environmental benefits of carbon-free
22 generation will further the State's efforts at achieving
23 100% clean energy and decarbonizing the electricity sector
24 in a safe, reliable, and affordable manner. Further, the
25 procurement of carbon emission credits will enhance the
26 health and welfare of Illinois residents through decreased
HB1700 Enrolled - 270 - LRB104 08228 SPS 18278 b
1 reliance on more highly polluting generation.
2 (I) The General Assembly therefore finds it necessary
3 to establish carbon mitigation credits to ensure decreased
4 reliance on more carbon-intensive energy resources, for
5 transitioning to a fully decarbonized electricity sector,
6 and to help ensure health and welfare of the State's
7 residents.
8 (2) As used in this subsection:
9 "Baseline costs" means costs used to establish a customer
10 protection cap that have been evaluated through an independent
11 audit of a carbon-free energy resource conducted by the
12 Environmental Protection Agency that evaluated projected
13 annual costs for operation and maintenance expenses; fully
14 allocated overhead costs, which shall be allocated using the
15 methodology developed by the Institute for Nuclear Power
16 Operations; fuel expenditures; nonfuel capital expenditures;
17 spent fuel expenditures; a return on working capital; the cost
18 of operational and market risks that could be avoided by
19 ceasing operation; and any other costs necessary for continued
20 operations, provided that "necessary" means, for purposes of
21 this definition, that the costs could reasonably be avoided
22 only by ceasing operations of the carbon-free energy resource.
23 "Carbon mitigation credit" means a tradable credit that
24 represents the carbon emission reduction attributes of one
25 megawatt-hour of energy produced from a carbon-free energy
26 resource.
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1 "Carbon-free energy resource" means a generation facility
2 that: (1) is fueled by nuclear power; and (2) is
3 interconnected to PJM Interconnection, LLC.
4 (3) Procurement.
5 (A) Beginning with the delivery year commencing on
6 June 1, 2022, the Agency shall, for electric utilities
7 serving at least 3,000,000 retail customers in the State,
8 seek to procure contracts for no more than approximately
9 54,500,000 cost-effective carbon mitigation credits from
10 carbon-free energy resources because such credits are
11 necessary to support current levels of carbon-free energy
12 generation and ensure the State meets its carbon dioxide
13 emissions reduction goals. The Agency shall not make a
14 partial award of a contract for carbon mitigation credits
15 covering a fractional amount of a carbon-free energy
16 resource's projected output.
17 (B) Each carbon-free energy resource that intends to
18 participate in a procurement shall be required to submit
19 to the Agency the following information for the resource
20 on or before the date established by the Agency:
21 (i) the in-service date and remaining useful life
22 of the carbon-free energy resource;
23 (ii) the amount of power generated annually for
24 each of the past 10 years, which shall be used to
25 determine the capability of each facility;
26 (iii) a commitment to be reflected in any contract
HB1700 Enrolled - 272 - LRB104 08228 SPS 18278 b
1 entered into pursuant to this subsection (d-10) to
2 continue operating the carbon-free energy resource at
3 a capacity factor of at least 88% annually on average
4 for the duration of the contract or contracts executed
5 under the procurement held under this subsection
6 (d-10), except in an instance described in
7 subparagraph (E) of paragraph (1) of subsection (d-5)
8 of this Section or made impracticable as a result of
9 compliance with law or regulation;
10 (iv) financial need and the risk of loss of the
11 environmental benefits of such resource, which shall
12 include the following information:
13 (I) the carbon-free energy resource's cost
14 projections, expressed on a per megawatt-hour
15 basis, over the next 5 delivery years, which shall
16 include the following: operation and maintenance
17 expenses; fully allocated overhead costs, which
18 shall be allocated using the methodology developed
19 by the Institute for Nuclear Power Operations;
20 fuel expenditures; nonfuel capital expenditures;
21 spent fuel expenditures; a return on working
22 capital; the cost of operational and market risks
23 that could be avoided by ceasing operation; and
24 any other costs necessary for continued
25 operations, provided that "necessary" means, for
26 purposes of this subitem (I), that the costs could
HB1700 Enrolled - 273 - LRB104 08228 SPS 18278 b
1 reasonably be avoided only by ceasing operations
2 of the carbon-free energy resource; and
3 (II) the carbon-free energy resource's revenue
4 projections, including energy, capacity, ancillary
5 services, any other direct State support, known or
6 anticipated federal attribute credits, known or
7 anticipated tax credits, and any other direct
8 federal support.
9 The information described in this subparagraph (B) may
10 be submitted on a confidential basis and shall be treated
11 and maintained by the Agency, the procurement
12 administrator, and the Commission as confidential and
13 proprietary and exempt from disclosure under subparagraphs
14 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
15 Information Act. The Office of the Attorney General shall
16 have access to, and maintain the confidentiality of, such
17 information pursuant to Section 6.5 of the Attorney
18 General Act.
19 (C) The Agency shall solicit bids for the contracts
20 described in this subsection (d-10) from carbon-free
21 energy resources that have satisfied the requirements of
22 subparagraph (B) of this paragraph (3). The contracts
23 procured pursuant to a procurement event shall reflect,
24 and be subject to, the following terms, requirements, and
25 limitations:
26 (i) Contracts are for delivery of carbon
HB1700 Enrolled - 274 - LRB104 08228 SPS 18278 b
1 mitigation credits, and are not energy or capacity
2 sales contracts requiring physical delivery. Pursuant
3 to item (iii), contract payments shall fully deduct
4 the value of any monetized federal production tax
5 credits, credits issued pursuant to a federal clean
6 energy standard, and other federal credits if
7 applicable.
8 (ii) Contracts for carbon mitigation credits shall
9 commence with the delivery year beginning on June 1,
10 2022 and shall be for a term of 5 delivery years
11 concluding on May 31, 2027.
12 (iii) The price per carbon mitigation credit to be
13 paid under a contract for a given delivery year shall
14 be equal to an accepted bid price less the sum of:
15 (I) one of the following energy price indices,
16 selected by the bidder at the time of the bid for
17 the term of the contract:
18 (aa) the weighted-average hourly day-ahead
19 price for the applicable delivery year at the
20 busbar of all resources procured pursuant to
21 this subsection (d-10), weighted by actual
22 production from the resources; or
23 (bb) the projected energy price for the
24 PJM Interconnection, LLC Northern Illinois Hub
25 for the applicable delivery year determined
26 according to subitem (aa) of item (iii) of
HB1700 Enrolled - 275 - LRB104 08228 SPS 18278 b
1 subparagraph (B) of paragraph (1) of
2 subsection (d-5).
3 (II) the Base Residual Auction Capacity Price
4 for the ComEd zone as determined by PJM
5 Interconnection, LLC, divided by 24 hours per day,
6 for the applicable delivery year for the first 3
7 delivery years, and then any subsequent delivery
8 years unless the PJM Interconnection, LLC applies
9 the Minimum Offer Price Rule to participating
10 carbon-free energy resources because they supply
11 carbon mitigation credits pursuant to this Section
12 at which time, upon notice by the carbon-free
13 energy resource to the Commission and subject to
14 the Commission's confirmation, the value under
15 this subitem shall be zero, as further described
16 in the carbon mitigation credit procurement plan;
17 and
18 (III) any value of monetized federal tax
19 credits, direct payments, or similar subsidy
20 provided to the carbon-free energy resource from
21 any unit of government that is not already
22 reflected in energy prices.
23 If the price-per-megawatt-hour calculation
24 performed under item (iii) of this subparagraph (C)
25 for a given delivery year results in a net positive
26 value, then the electric utility counterparty to the
HB1700 Enrolled - 276 - LRB104 08228 SPS 18278 b
1 contract shall multiply such net value by the
2 applicable contract quantity and remit the amount to
3 the supplier.
4 To protect retail customers from retail rate
5 impacts that may arise upon the initiation of carbon
6 policy changes, if the price-per-megawatt-hour
7 calculation performed under item (iii) of this
8 subparagraph (C) for a given delivery year results in
9 a net negative value, then the supplier counterparty
10 to the contract shall multiply such net value by the
11 applicable contract quantity and remit such amount to
12 the electric utility counterparty. The electric
13 utility shall reflect such amounts remitted by
14 suppliers as a credit on its retail customer bills as
15 soon as practicable.
16 (iv) To ensure that retail customers in Northern
17 Illinois do not pay more for carbon mitigation credits
18 than the value such credits provide, and
19 notwithstanding the provisions of this subsection
20 (d-10), the Agency shall not accept bids for contracts
21 that exceed a customer protection cap equal to the
22 baseline costs of carbon-free energy resources.
23 The baseline costs for the applicable year shall
24 be the following:
25 (I) For the delivery year beginning June 1,
26 2022, the baseline costs shall be an amount equal
HB1700 Enrolled - 277 - LRB104 08228 SPS 18278 b
1 to $30.30 per megawatt-hour.
2 (II) For the delivery year beginning June 1,
3 2023, the baseline costs shall be an amount equal
4 to $32.50 per megawatt-hour.
5 (III) For the delivery year beginning June 1,
6 2024, the baseline costs shall be an amount equal
7 to $33.43 per megawatt-hour.
8 (IV) For the delivery year beginning June 1,
9 2025, the baseline costs shall be an amount equal
10 to $33.50 per megawatt-hour.
11 (V) For the delivery year beginning June 1,
12 2026, the baseline costs shall be an amount equal
13 to $34.50 per megawatt-hour.
14 An Environmental Protection Agency consultant
15 forecast, included in a report issued April 14, 2021,
16 projects that a carbon-free energy resource has the
17 opportunity to earn on average approximately $30.28
18 per megawatt-hour, for the sale of energy and capacity
19 during the time period between 2022 and 2027.
20 Therefore, the sale of carbon mitigation credits
21 provides the opportunity to receive an additional
22 amount per megawatt-hour in addition to the projected
23 prices for energy and capacity.
24 Although actual energy and capacity prices may
25 vary from year-to-year, the General Assembly finds
26 that this customer protection cap will help ensure
HB1700 Enrolled - 278 - LRB104 08228 SPS 18278 b
1 that the cost of carbon mitigation credits will be
2 less than its value, based upon the social cost of
3 carbon identified in the Technical Support Document
4 issued in February 2021 by the U.S. Interagency
5 Working Group on Social Cost of Greenhouse Gases and
6 the PJM Interconnection, LLC carbon dioxide marginal
7 emission rate for 2020, and that a carbon-free energy
8 resource receiving payment for carbon mitigation
9 credits receives no more than necessary to keep those
10 units in operation.
11 (D) No later than 7 days after the effective date of
12 this amendatory Act of the 102nd General Assembly, the
13 Agency shall publish its proposed carbon mitigation credit
14 procurement plan. The Plan shall provide that winning bids
15 shall be selected by taking into consideration which
16 resources best match public interest criteria that
17 include, but are not limited to, minimizing carbon dioxide
18 emissions that result from electricity consumed in
19 Illinois and minimizing sulfur dioxide, nitrogen oxide,
20 and particulate matter emissions that adversely affect the
21 citizens of this State. The selection of winning bids
22 shall also take into account the incremental environmental
23 benefits resulting from the procurement or procurements,
24 such as any existing environmental benefits that are
25 preserved by a procurement held under this subsection
26 (d-10) and would cease to exist if the procurement were
HB1700 Enrolled - 279 - LRB104 08228 SPS 18278 b
1 not held, including the preservation of carbon-free energy
2 resources. For those bidders having the same public
3 interest criteria score, the relative ranking of such
4 bidders shall be determined by price. The Plan shall
5 describe in detail how each public interest factor shall
6 be considered and weighted in the bid selection process to
7 ensure that the public interest criteria are applied to
8 the procurement. The Plan shall, to the extent practical
9 and permissible by federal law, ensure that successful
10 bidders make commercially reasonable efforts to apply for
11 federal tax credits, direct payments, or similar subsidy
12 programs that support carbon-free generation and for which
13 the successful bidder is eligible. Upon publishing of the
14 carbon mitigation credit procurement plan, copies of the
15 plan shall be posted and made publicly available on the
16 Agency's website. All interested parties shall have 7 days
17 following the date of posting to provide comment to the
18 Agency on the plan. All comments shall be posted to the
19 Agency's website. Following the end of the comment period,
20 but no more than 19 days later than the effective date of
21 this amendatory Act of the 102nd General Assembly, the
22 Agency shall revise the plan as necessary based on the
23 comments received and file its carbon mitigation credit
24 procurement plan with the Commission.
25 (E) If the Commission determines that the plan is
26 likely to result in the procurement of cost-effective
HB1700 Enrolled - 280 - LRB104 08228 SPS 18278 b
1 carbon mitigation credits, then the Commission shall,
2 after notice and hearing and opportunity for comment, but
3 no later than 42 days after the Agency filed the plan,
4 approve the plan or approve it with modification. For
5 purposes of this subsection (d-10), "cost-effective" means
6 carbon mitigation credits that are procured from
7 carbon-free energy resources at prices that are within the
8 limits specified in this paragraph (3). As part of the
9 Commission's review and acceptance or rejection of the
10 procurement results, the Commission shall, in its public
11 notice of successful bidders:
12 (i) identify how the selected carbon-free energy
13 resources satisfy the public interest criteria
14 described in this paragraph (3) of minimizing carbon
15 dioxide emissions that result from electricity
16 consumed in Illinois and minimizing sulfur dioxide,
17 nitrogen oxide, and particulate matter emissions that
18 adversely affect the citizens of this State;
19 (ii) specifically address how the selection of
20 carbon-free energy resources takes into account the
21 incremental environmental benefits resulting from the
22 procurement, including any existing environmental
23 benefits that are preserved by the procurements held
24 under this amendatory Act of the 102nd General
25 Assembly and would have ceased to exist if the
26 procurements had not been held, such as the
HB1700 Enrolled - 281 - LRB104 08228 SPS 18278 b
1 preservation of carbon-free energy resources;
2 (iii) quantify the environmental benefit of
3 preserving the carbon-free energy resources procured
4 pursuant to this subsection (d-10), including the
5 following:
6 (I) an assessment value of avoided greenhouse
7 gas emissions measured as the product of the
8 carbon-free energy resources' output over the
9 contract term, using generally accepted
10 methodologies for the valuation of avoided
11 emissions; and
12 (II) an assessment of costs of replacement
13 with other carbon-free energy resources and
14 renewable energy resources, including wind and
15 photovoltaic generation, based upon an assessment
16 of the prices paid for renewable energy credits
17 through programs and procurements conducted
18 pursuant to subsection (c) of Section 1-75 of this
19 Act, and the additional storage necessary to
20 produce the same or similar capability of matching
21 customer usage patterns.
22 (F) The procurements described in this paragraph (3),
23 including, but not limited to, the execution of all
24 contracts procured, shall be completed no later than
25 December 3, 2021. The procurement and plan approval
26 processes required by this paragraph (3) shall be
HB1700 Enrolled - 282 - LRB104 08228 SPS 18278 b
1 conducted in conjunction with the procurement and plan
2 approval processes required by Section 16-111.5 of the
3 Public Utilities Act, to the extent practicable. However,
4 the Agency and Commission may, as appropriate, modify the
5 various dates and timelines under this subparagraph and
6 subparagraphs (D) and (E) of this paragraph (3) to meet
7 the December 3, 2021 contract execution deadline.
8 Following the completion of such procurements, and
9 consistent with this paragraph (3), the Agency shall
10 calculate the payments to be made under each contract in a
11 timely fashion.
12 (F-1) Costs incurred by the electric utility pursuant
13 to a contract authorized by this subsection (d-10) shall
14 be deemed prudently incurred and reasonable in amount, and
15 the electric utility shall be entitled to full cost
16 recovery pursuant to a tariff or tariffs filed with the
17 Commission.
18 (G) The counterparty electric utility shall retire all
19 carbon mitigation credits used to comply with the
20 requirements of this subsection (d-10).
21 (H) If a carbon-free energy resource is sold to
22 another owner, the rights, obligations, and commitments
23 under this subsection (d-10) shall continue to the
24 subsequent owner.
25 (I) This subsection (d-10) shall become inoperative on
26 January 1, 2028.
HB1700 Enrolled - 283 - LRB104 08228 SPS 18278 b
1 (e) The draft procurement plans are subject to public
2 comment, as required by Section 16-111.5 of the Public
3 Utilities Act.
4 (f) The Agency shall submit the final procurement plan to
5 the Commission. The Agency shall revise a procurement plan if
6 the Commission determines that it does not meet the standards
7 set forth in Section 16-111.5 of the Public Utilities Act.
8 (g) The Agency shall assess fees to each affected utility
9 to recover the costs incurred in preparation of the annual
10 procurement plan for the utility.
11 (h) The Agency shall assess fees to each bidder to recover
12 the costs incurred in connection with a competitive
13 procurement process.
14 (i) A renewable energy credit, carbon emission credit,
15 zero emission credit, or carbon mitigation credit can only be
16 used once to comply with a single portfolio or other standard
17 as set forth in subsection (c), subsection (d), or subsection
18 (d-5) of this Section, respectively. A renewable energy
19 credit, carbon emission credit, zero emission credit, or
20 carbon mitigation credit cannot be used to satisfy the
21 requirements of more than one standard. If more than one type
22 of credit is issued for the same megawatt hour of energy, only
23 one credit can be used to satisfy the requirements of a single
24 standard. After such use, the credit must be retired together
25 with any other credits issued for the same megawatt hour of
26 energy.
HB1700 Enrolled - 284 - LRB104 08228 SPS 18278 b
1 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
2 103-580, eff. 12-8-23; 103-1066, eff. 2-20-25.)
3 (Text of Section after amendment by P.A. 104-458)
4 Sec. 1-75. Planning and Procurement Bureau. The Planning
5 and Procurement Bureau has the following duties and
6 responsibilities:
7 (a) The Planning and Procurement Bureau shall each year,
8 beginning in 2008, develop procurement plans and conduct
9 competitive procurement processes in accordance with the
10 requirements of Section 16-111.5 of the Public Utilities Act
11 for the eligible retail customers of electric utilities that
12 on December 31, 2005 provided electric service to at least
13 100,000 customers in Illinois. Beginning with the delivery
14 year commencing on June 1, 2017, the Planning and Procurement
15 Bureau shall develop plans and processes for the procurement
16 of zero emission credits from zero emission facilities in
17 accordance with the requirements of subsection (d-5) of this
18 Section. Beginning on the effective date of this amendatory
19 Act of the 102nd General Assembly, the Planning and
20 Procurement Bureau shall develop plans and processes for the
21 procurement of carbon mitigation credits from carbon-free
22 energy resources in accordance with the requirements of
23 subsection (d-10) of this Section. The Planning and
24 Procurement Bureau shall also develop procurement plans and
25 conduct competitive procurement processes in accordance with
HB1700 Enrolled - 285 - LRB104 08228 SPS 18278 b
1 the requirements of Section 16-111.5 of the Public Utilities
2 Act for the eligible retail customers of small
3 multi-jurisdictional electric utilities that (i) on December
4 31, 2005 served less than 100,000 customers in Illinois and
5 (ii) request a procurement plan for their Illinois
6 jurisdictional load. This Section shall not apply to a small
7 multi-jurisdictional utility until such time as a small
8 multi-jurisdictional utility requests the Agency to prepare a
9 procurement plan for their Illinois jurisdictional load. For
10 the purposes of this Section, the term "eligible retail
11 customers" has the same definition as found in Section
12 16-111.5(a) of the Public Utilities Act.
13 Beginning with the plan or plans to be implemented in the
14 2017 delivery year, the Agency shall no longer include the
15 procurement of renewable energy resources in the annual
16 procurement plans required by this subsection (a), except as
17 provided in subsection (q) of Section 16-111.5 of the Public
18 Utilities Act, and shall instead develop a long-term renewable
19 resources procurement plan in accordance with subsection (c)
20 of this Section and Section 16-111.5 of the Public Utilities
21 Act.
22 In accordance with subsection (c-5) of this Section, the
23 Planning and Procurement Bureau shall oversee the procurement
24 by electric utilities that served more than 300,000 retail
25 customers in this State as of January 1, 2019 of renewable
26 energy credits from new utility-scale solar projects to be
HB1700 Enrolled - 286 - LRB104 08228 SPS 18278 b
1 installed, along with energy storage facilities, at or
2 adjacent to the sites of electric generating facilities that,
3 as of January 1, 2016, burned coal as their primary fuel
4 source.
5 (1) The Agency shall each year, beginning in 2008, as
6 needed, issue a request for qualifications for experts or
7 expert consulting firms to develop the procurement plans
8 in accordance with Section 16-111.5 of the Public
9 Utilities Act. In order to qualify an expert or expert
10 consulting firm must have:
11 (A) direct previous experience assembling
12 large-scale power supply plans or portfolios for
13 end-use customers;
14 (B) an advanced degree in economics, mathematics,
15 engineering, risk management, or a related area of
16 study;
17 (C) 10 years of experience in the electricity
18 sector, including managing supply risk;
19 (D) expertise in wholesale electricity market
20 rules, including those established by the Federal
21 Energy Regulatory Commission and regional transmission
22 organizations;
23 (E) expertise in credit protocols and familiarity
24 with contract protocols;
25 (F) adequate resources to perform and fulfill the
26 required functions and responsibilities; and
HB1700 Enrolled - 287 - LRB104 08228 SPS 18278 b
1 (G) the absence of a conflict of interest and
2 inappropriate bias for or against potential bidders or
3 the affected electric utilities.
4 (2) The Agency shall each year, as needed, issue a
5 request for qualifications for a procurement administrator
6 to conduct the competitive procurement processes in
7 accordance with Section 16-111.5 of the Public Utilities
8 Act. In order to qualify an expert or expert consulting
9 firm must have:
10 (A) direct previous experience administering a
11 large-scale competitive procurement process;
12 (B) an advanced degree in economics, mathematics,
13 engineering, or a related area of study;
14 (C) 10 years of experience in the electricity
15 sector, including risk management experience;
16 (D) expertise in wholesale electricity market
17 rules, including those established by the Federal
18 Energy Regulatory Commission and regional transmission
19 organizations;
20 (E) expertise in credit and contract protocols;
21 (F) adequate resources to perform and fulfill the
22 required functions and responsibilities; and
23 (G) the absence of a conflict of interest and
24 inappropriate bias for or against potential bidders or
25 the affected electric utilities.
26 (3) The Agency shall provide affected utilities and
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1 other interested parties with the lists of qualified
2 experts or expert consulting firms identified through the
3 request for qualifications processes that are under
4 consideration to develop the procurement plans and to
5 serve as the procurement administrator. The Agency shall
6 also provide each qualified expert's or expert consulting
7 firm's response to the request for qualifications. All
8 information provided under this subparagraph shall also be
9 provided to the Commission. The Agency may provide by rule
10 for fees associated with supplying the information to
11 utilities and other interested parties. These parties
12 shall, within 5 business days, notify the Agency in
13 writing if they object to any experts or expert consulting
14 firms on the lists. Objections shall be based on:
15 (A) failure to satisfy qualification criteria;
16 (B) identification of a conflict of interest; or
17 (C) evidence of inappropriate bias for or against
18 potential bidders or the affected utilities.
19 The Agency shall remove experts or expert consulting
20 firms from the lists within 10 days if there is a
21 reasonable basis for an objection and provide the updated
22 lists to the affected utilities and other interested
23 parties. If the Agency fails to remove an expert or expert
24 consulting firm from a list, an objecting party may seek
25 review by the Commission within 5 days thereafter by
26 filing a petition, and the Commission shall render a
HB1700 Enrolled - 289 - LRB104 08228 SPS 18278 b
1 ruling on the petition within 10 days. There is no right of
2 appeal of the Commission's ruling.
3 (4) The Agency shall issue requests for proposals to
4 the qualified experts or expert consulting firms to
5 develop a procurement plan for the affected utilities and
6 to serve as procurement administrator.
7 (5) The Agency shall select an expert or expert
8 consulting firm to develop procurement plans based on the
9 proposals submitted and shall award contracts of up to 5
10 years to those selected.
11 (6) The Agency shall select an expert or expert
12 consulting firm, with approval of the Commission, to serve
13 as procurement administrator based on the proposals
14 submitted. If the Commission rejects, within 5 days, the
15 Agency's selection, the Agency shall submit another
16 recommendation within 3 days based on the proposals
17 submitted. The Agency shall award a 5-year contract to the
18 expert or expert consulting firm so selected with
19 Commission approval.
20 (b) The experts or expert consulting firms retained by the
21 Agency shall, as appropriate, prepare procurement plans, and
22 conduct a competitive procurement process as prescribed in
23 Section 16-111.5 of the Public Utilities Act, to ensure
24 adequate, reliable, affordable, efficient, and environmentally
25 sustainable electric service at the lowest total cost over
26 time, taking into account any benefits of price stability, for
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1 eligible retail customers of electric utilities that on
2 December 31, 2005 provided electric service to at least
3 100,000 customers in the State of Illinois, and for eligible
4 Illinois retail customers of small multi-jurisdictional
5 electric utilities that (i) on December 31, 2005 served less
6 than 100,000 customers in Illinois and (ii) request a
7 procurement plan for their Illinois jurisdictional load.
8 (c) Renewable portfolio standard.
9 (1)(A) The Agency shall develop a long-term renewable
10 resources procurement plan that shall include procurement
11 programs and competitive procurement events necessary to
12 meet the goals set forth in this subsection (c). The
13 initial long-term renewable resources procurement plan
14 shall be released for comment no later than 160 days after
15 June 1, 2017 (the effective date of Public Act 99-906).
16 The Agency shall review, and may revise on an expedited
17 basis, the long-term renewable resources procurement plan
18 at least every 2 years, which shall be conducted in
19 conjunction with the procurement plan under Section
20 16-111.5 of the Public Utilities Act to the extent
21 practicable to minimize administrative expense. No later
22 than 120 days after the effective date of this amendatory
23 Act of the 103rd General Assembly, the Agency shall
24 release for comment a revision to the long-term renewable
25 resources procurement plan, updating elements of the most
26 recently approved plan as needed to comply with this
HB1700 Enrolled - 291 - LRB104 08228 SPS 18278 b
1 amendatory Act of the 103rd General Assembly, and any
2 long-term renewable resources procurement plan update
3 published by the Agency but not yet approved by the
4 Illinois Commerce Commission shall be withdrawn. The
5 long-term renewable resources procurement plans shall be
6 subject to review and approval by the Commission under
7 Section 16-111.5 of the Public Utilities Act.
8 (B) Subject to subparagraph (F) of this paragraph (1),
9 the long-term renewable resources procurement plan shall
10 attempt to meet the goals for procurement of renewable
11 energy credits at levels of at least the following overall
12 percentages: 13% by the 2017 delivery year; increasing by
13 at least 1.5% each delivery year thereafter to at least
14 25% by the 2025 delivery year; increasing by at least 3%
15 each delivery year thereafter to at least 40% by the 2030
16 delivery year, and continuing at no less than 40% for each
17 delivery year thereafter. The Agency shall attempt to
18 procure 50% by delivery year 2040. The Agency shall
19 determine the annual increase between delivery year 2030
20 and delivery year 2040, if any, taking into account energy
21 demand, other energy resources, and other public policy
22 goals. In the event of a conflict between these goals and
23 the new wind, new photovoltaic, new geothermal heating and
24 cooling, and hydropower procurement requirements described
25 in items (i) through (iii) of subparagraph (C) of this
26 paragraph (1), the long-term plan shall prioritize
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1 compliance with the new wind, new photovoltaic, new
2 geothermal heating and cooling, and hydropower procurement
3 requirements described in items (i) through (iii) of
4 subparagraph (C) of this paragraph (1) over the annual
5 percentage targets described in this subparagraph (B). The
6 Agency shall not comply with the annual percentage targets
7 described in this subparagraph (B) by procuring renewable
8 energy credits that are unlikely to lead to the
9 development of new renewable resources or new, modernized,
10 or retooled hydropower facilities.
11 For the delivery year beginning June 1, 2017, the
12 procurement plan shall attempt to include, subject to the
13 prioritization outlined in this subparagraph (B),
14 cost-effective renewable energy resources equal to at
15 least 13% of each utility's load for eligible retail
16 customers and 13% of the applicable portion of each
17 utility's load for retail customers who are not eligible
18 retail customers, which applicable portion shall equal 50%
19 of the utility's load for retail customers who are not
20 eligible retail customers on February 28, 2017.
21 For the delivery year beginning June 1, 2018, the
22 procurement plan shall attempt to include, subject to the
23 prioritization outlined in this subparagraph (B),
24 cost-effective renewable energy resources equal to at
25 least 14.5% of each utility's load for eligible retail
26 customers and 14.5% of the applicable portion of each
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1 utility's load for retail customers who are not eligible
2 retail customers, which applicable portion shall equal 75%
3 of the utility's load for retail customers who are not
4 eligible retail customers on February 28, 2017.
5 For the delivery year beginning June 1, 2019, and for
6 each year thereafter, the procurement plans shall attempt
7 to include, subject to the prioritization outlined in this
8 subparagraph (B), cost-effective renewable energy
9 resources equal to a minimum percentage of each utility's
10 load for all retail customers as follows: 16% by June 1,
11 2019; increasing by 1.5% each year thereafter to 25% by
12 June 1, 2025; and 25% by June 1, 2026; increasing by at
13 least 3% each delivery year thereafter to at least 40% by
14 the 2030 delivery year, and continuing at no less than 40%
15 for each delivery year thereafter. The Agency shall
16 attempt to procure 50% by delivery year 2040. The Agency
17 shall determine the annual increase between delivery year
18 2030 and delivery year 2040, if any, taking into account
19 energy demand, other energy resources, and other public
20 policy goals.
21 For each delivery year, the Agency shall first
22 recognize each utility's obligations for that delivery
23 year under existing contracts. Any renewable energy
24 credits under existing contracts, including renewable
25 energy credits as part of renewable energy resources,
26 shall be used to meet the goals set forth in this
HB1700 Enrolled - 294 - LRB104 08228 SPS 18278 b
1 subsection (c) for the delivery year.
2 (C) The long-term renewable resources procurement plan
3 described in subparagraph (A) of this paragraph (1) shall
4 include the procurement of renewable energy credits from
5 new projects pursuant to the following terms:
6 (i) At least 10,000,000 renewable energy credits
7 delivered annually by the end of the 2021 delivery
8 year, and increasing ratably to reach 45,000,000
9 renewable energy credits delivered annually from new
10 wind and solar projects, from repowered wind projects,
11 or from retooled hydropower facilities by the end of
12 delivery year 2030 such that the goals in subparagraph
13 (B) of this paragraph (1) are met entirely by
14 procurements of renewable energy credits from new wind
15 and photovoltaic projects. Of that amount, to the
16 extent possible, the Agency shall endeavor to procure
17 45% from new and repowered wind and hydropower
18 projects and shall procure at least 55% from
19 photovoltaic projects. Of the amount to be procured
20 from photovoltaic projects, the Agency shall procure:
21 at least 50% from solar photovoltaic projects using
22 the program outlined in subparagraph (K) of this
23 paragraph (1) from distributed renewable energy
24 generation devices or community renewable generation
25 projects; at least 47% from utility-scale solar
26 projects; at least 3% from brownfield site
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1 photovoltaic projects that are not community renewable
2 generation projects. The Agency may propose
3 adjustments to these percentages, including
4 establishing percentage-based goals for the
5 procurement of renewable energy credits from
6 modernized or retooled hydropower facilities and
7 repowered wind projects, through its long-term
8 renewable resources plan described in subparagraph (A)
9 of this paragraph (1) as necessary based on developer
10 interest, market conditions, budget considerations,
11 resource adequacy needs, or other factors.
12 Notwithstanding the percentage-based goals as
13 described in this Section, the Agency shall develop a
14 Geothermal Homes and Businesses Program for the
15 procurement of renewable energy credits from
16 geothermal heating and cooling systems.
17 In developing the long-term renewable resources
18 procurement plan, the Agency shall consider other
19 approaches, in addition to competitive procurements,
20 that can be used to procure renewable energy credits
21 from brownfield site photovoltaic projects and thereby
22 help return blighted or contaminated land to
23 productive use while enhancing public health and the
24 well-being of Illinois residents, including those in
25 environmental justice communities, as defined using
26 existing methodologies and findings used by the Agency
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1 and its Administrator in its Illinois Solar for All
2 Program. The Agency shall also consider other
3 approaches, in addition to competitive procurements,
4 to procure renewable energy credits from new and
5 existing hydropower facilities to support the
6 development and maintenance of these facilities. The
7 Agency shall explore options to convert existing dams
8 but shall not consider approaches to develop new dams
9 where they do not already exist. To encourage the
10 continued operation of utility-scale wind projects,
11 the Agency shall consider and may propose other
12 approaches in addition to competitive procurements to
13 procure renewable energy credits from repowered wind
14 projects.
15 (ii) In any given delivery year, if forecasted
16 expenses are less than the maximum budget available
17 under subparagraph (E) of this paragraph (1), the
18 Agency shall continue to procure new renewable energy
19 credits until that budget is exhausted in the manner
20 outlined in item (i) of this subparagraph (C).
21 (iii) For purposes of this Section:
22 "New wind projects" means wind renewable energy
23 facilities that are energized after June 1, 2017 for
24 the delivery year commencing June 1, 2017.
25 "New photovoltaic projects" means photovoltaic
26 renewable energy facilities that are energized after
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1 June 1, 2017. Photovoltaic projects developed under
2 Section 1-56 of this Act shall not apply towards the
3 new photovoltaic project requirements in this
4 subparagraph (C).
5 "Repowered wind projects" means utility-scale wind
6 projects featuring the removal, replacement, or
7 expansion of turbines at an existing project site, as
8 defined in the long-term renewable resources
9 procurement plan, after the effective date of this
10 amendatory Act of the 103rd General Assembly.
11 Renewable energy credit contract awards used to
12 support repowered wind projects shall only cover the
13 incremental increase in facility electricity
14 production resultant from repowering.
15 "Geothermal heating and cooling system" means a
16 system located in this State that meets all of the
17 following requirements:
18 (I) the system exchanges thermal energy from
19 groundwater or a shallow ground source to generate
20 thermal energy through an electric geothermal heat
21 pump or a system of electric geothermal heat pumps
22 interconnected with any geothermal extraction
23 facility that is (1) a closed loop or a series of
24 closed loop systems in which fluid is permanently
25 confined within a pipe or tubing and does not come
26 in contact with the outside environment or (2) an
HB1700 Enrolled - 298 - LRB104 08228 SPS 18278 b
1 open loop system in which ground or surface water
2 is circulated in an environmentally safe manner
3 directly into the facility and returned to the
4 same aquifer or surface water source;
5 (II) to the extent applicable and practicable,
6 the system meets or exceeds federal Energy Star
7 product specification standards for Geothermal
8 Heat Pumps established on January 1, 2012, as
9 clarified by the Environmental Protection Agency
10 guidance document released on February 28, 2012
11 entitled "Clarification to the Geothermal Heat
12 Pump Verification Testing Requirements and Basic
13 Model Group Definition", or any successor
14 standards that meet or exceed these standards;
15 (III) the system replaces or displaces less
16 efficient space or water heating systems,
17 regardless of fuel type;
18 (IV) the system replaces or displaces less
19 efficient space cooling systems, when applicable;
20 (V) the system does not feed electricity back
21 to the grid, as defined at the level of the
22 geothermal heat pump; and
23 (VI) the system became operational on or after
24 the effective date of this amendatory Act of the
25 104th General Assembly.
26 For purposes of calculating whether the Agency has
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1 procured enough new wind and solar renewable energy
2 credits required by this subparagraph (C), renewable
3 energy facilities that have a multi-year renewable
4 energy credit delivery contract with the utility
5 through at least delivery year 2030 shall be
6 considered new, however no renewable energy credits
7 from contracts entered into before June 1, 2021 shall
8 be used to calculate whether the Agency has procured
9 the correct proportion of new wind and new solar
10 contracts described in this subparagraph (C) for
11 delivery year 2021 and thereafter.
12 (iv) The Agency may implement additional measures,
13 including eligibility requirements, to ensure that new
14 wind projects and new photovoltaic projects supported
15 through renewable energy credit contract awards are a
16 result of a contract award and are otherwise developed
17 pursuant to the financial certainty provided through a
18 contract award.
19 (D) Renewable energy credits shall be cost effective.
20 For purposes of this subsection (c), "cost effective"
21 means that the costs of procuring renewable energy
22 resources do not cause the limit stated in subparagraph
23 (E) of this paragraph (1) to be exceeded and, for
24 renewable energy credits procured through a competitive
25 procurement event, do not exceed benchmarks based on
26 market prices for like products in the region. For
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1 purposes of this subsection (c), "like products" means
2 contracts for renewable energy credits from the same or
3 substantially similar technology, same or substantially
4 similar vintage (new or existing), the same or
5 substantially similar quantity, and the same or
6 substantially similar contract length and structure.
7 Benchmarks shall reflect development, financing, or
8 related costs resulting from requirements imposed through
9 other provisions of State law, including, but not limited
10 to, requirements in subparagraphs (P) and (Q) of this
11 paragraph (1) and the Renewable Energy Facilities
12 Agricultural Impact Mitigation Act. Confidential
13 benchmarks shall be developed by the procurement
14 administrator, in consultation with the Commission staff,
15 Agency staff, and the procurement monitor and shall be
16 subject to Commission review and approval. If price
17 benchmarks for like products in the region are not
18 available, the procurement administrator shall establish
19 price benchmarks based on publicly available data on
20 regional technology costs and expected current and future
21 regional energy prices. The benchmarks in this Section
22 shall not be used to curtail or otherwise reduce
23 contractual obligations entered into by or through the
24 Agency prior to June 1, 2017 (the effective date of Public
25 Act 99-906).
26 (E) For purposes of this subsection (c), the required
HB1700 Enrolled - 301 - LRB104 08228 SPS 18278 b
1 procurement of cost-effective renewable energy resources
2 for a particular year commencing prior to June 1, 2017
3 shall be measured as a percentage of the actual amount of
4 electricity (megawatt-hours) supplied by the electric
5 utility to eligible retail customers in the delivery year
6 ending immediately prior to the procurement, and, for
7 delivery years commencing on and after June 1, 2017, the
8 required procurement of cost-effective renewable energy
9 resources for a particular year shall be measured as a
10 percentage of the actual amount of electricity
11 (megawatt-hours) delivered by the electric utility in the
12 delivery year ending immediately prior to the procurement,
13 to all retail customers in its service territory. For
14 purposes of this subsection (c), the amount paid per
15 kilowatthour means the total amount paid for electric
16 service expressed on a per kilowatthour basis. For
17 purposes of this subsection (c), the total amount paid for
18 electric service includes without limitation amounts paid
19 for supply, transmission, capacity, distribution,
20 surcharges, and add-on taxes.
21 Notwithstanding the requirements of this subsection
22 (c), and except as provided in subparagraph (E-5) of
23 paragraph (1) of this subsection (c) or except as
24 otherwise authorized by the Commission in its approval of
25 the integrated resource plan under Section 16-202 of the
26 Public Utilities Act, the total of renewable energy
HB1700 Enrolled - 302 - LRB104 08228 SPS 18278 b
1 resources procured under the procurement plan for any
2 single year shall be subject to the limitations of this
3 subparagraph (E). Such procurement shall be reduced for
4 all retail customers based on the amount necessary to
5 limit the annual estimated average net increase due to the
6 costs of these resources included in the amounts paid by
7 eligible retail customers in connection with electric
8 service to no more than 4.25% of the amount paid per
9 kilowatthour by those customers during the year ending May
10 31, 2009, adjusted annually for inflation starting with
11 the first adjustment in the delivery year commencing June
12 1, 2026. For the purposes of this Section, the inflation
13 adjustment shall not be accrued or applied retroactively
14 prior to the effective date of this amendatory Act of the
15 104th General Assembly and shall apply prospectively
16 starting in 2025. The limitation shall be increased by an
17 additional 1.65 percentage points of the amount paid per
18 kilowatthour by eligible retail customers during the year
19 ending May 31, 2009 starting with the delivery year
20 commencing June 1, 2027. To arrive at a maximum dollar
21 amount of renewable energy resources to be procured for
22 the particular delivery year, the resulting per
23 kilowatthour amount shall be applied to the actual amount
24 of kilowatthours of electricity delivered, or applicable
25 portion of such amount as specified in paragraph (1) of
26 this subsection (c), as applicable, by the electric
HB1700 Enrolled - 303 - LRB104 08228 SPS 18278 b
1 utility in the delivery year immediately prior to the
2 procurement to all retail customers in its service
3 territory. The calculations required by this subparagraph
4 (E) shall be made only once for each delivery year at the
5 time that the renewable energy resources are procured.
6 Once the determination as to the amount of renewable
7 energy resources to procure is made based on the
8 calculations set forth in this subparagraph (E) and the
9 contracts procuring those amounts are executed between the
10 seller and applicable electric utility, no subsequent rate
11 impact determinations shall be made and no adjustments to
12 those contract amounts shall be allowed. As provided in
13 subparagraph (E-5) of paragraph (1) of this subsection
14 (c), the seller shall be entitled to full, prompt, and
15 uninterrupted payment under the applicable contract
16 notwithstanding the application of this subparagraph (E),
17 and all costs incurred under such contracts shall be fully
18 recoverable by the electric utility as provided in this
19 Section.
20 (E-5) If, for a particular delivery year, the
21 limitation on the amount of renewable energy resources to
22 be procured, as calculated pursuant to subparagraph (E) of
23 paragraph (1) of this subsection (c), would result in an
24 insufficient collection of funds to fully pay amounts due
25 to a seller under existing contracts executed under this
26 Section or executed under Section 1-56 of this Act, then
HB1700 Enrolled - 304 - LRB104 08228 SPS 18278 b
1 the following provisions shall apply to ensure full and
2 uninterrupted payment is made to such seller or sellers:
3 (i) If the electric utility has retained unspent
4 funds in an interest-bearing account as prescribed in
5 subsection (k) of Section 16-108 of the Public
6 Utilities Act, then the utility shall use those funds
7 to remit full payment to the sellers to ensure prompt
8 and uninterrupted payment of existing contractual
9 obligation.
10 (ii) If the funds described in item (i) of this
11 subparagraph (E-5) are insufficient to satisfy all
12 existing contractual obligations, then the electric
13 utility shall, nonetheless, remit full payment to the
14 sellers to ensure prompt and uninterrupted payment of
15 existing contractual obligations, provided that the
16 full costs shall be recoverable by the utility in
17 accordance with part (ee) of item (iv) of this
18 subsection (E-5).
19 (iii) The Agency shall promptly notify the
20 Commission that existing contractual obligations are
21 reasonably expected to exceed the maximum collection
22 authorized under subparagraph (E) of paragraph (1) of
23 this subsection (c) for the applicable delivery year.
24 The Agency shall also explain and confirm how the
25 operation of items (i) and (ii) of this subparagraph
26 (E-5) ensures that the electric utility will continue
HB1700 Enrolled - 305 - LRB104 08228 SPS 18278 b
1 to make prompt and uninterrupted payment under
2 existing contractual obligations. The Agency shall
3 provide this information to the Commission through a
4 notice filed in the Commission docket approving the
5 Agency's operative Long-Term Renewable Resources
6 Procurement Plan that includes the applicable delivery
7 year.
8 (iv) The Agency shall suspend or reduce new
9 contract awards for the procurement of renewable
10 energy credits until an Agency determination is made
11 under subparagraph (E) that additional procurements
12 would not cause the rate impact limitation of
13 subparagraph (E) to be exceeded. At least once
14 annually after the notice provided for in item (iii)
15 of this subparagraph (E-5) is made, the Agency shall
16 analyze existing contract obligations, projected
17 prices for indexed renewable energy credit contracts
18 executed under item (v) of subparagraph (G) of
19 paragraph (1) of subsection (c) of Section 1-75 of
20 this Act, and expected collections authorized under
21 subparagraph (E) to determine whether and to what
22 extent the limitations of subparagraph (E) would be
23 exceeded by additional renewable energy credit
24 procurement contract awards.
25 (aa) If the Agency determines that additional
26 renewable energy credit procurement contract
HB1700 Enrolled - 306 - LRB104 08228 SPS 18278 b
1 awards could be made without exceeding the
2 limitations of subparagraph (E), then the
3 procurements shall be authorized at a scale
4 determined not to exceed the limitations of
5 subparagraph (E) in a manner consistent with the
6 priorities of this Section.
7 (bb) If the Agency determines that additional
8 renewable energy credit procurement contract
9 awards cannot be made without exceeding the
10 limitations of subparagraph (E), then the Agency
11 shall suspend any new contract awards for the
12 procurement of renewable energy credits until a
13 new rate impact determination is made under
14 subparagraph (E).
15 (cc) Agency determinations made under this
16 item (iv) shall be detailed and comprehensive and,
17 if not made through the Agency's Long-Term
18 Renewable Resources Procurement Plan, shall be
19 filed as a compliance filing in the most recent
20 docketed proceeding approving the Agency's
21 Long-Term Renewable Resources Procurement Plan.
22 (dd) With respect to the procurement of
23 renewable energy credits authorized through
24 programs administered under subsection (b) of
25 Section 1-56 and subparagraphs (K) through (M) of
26 paragraph (1) of subsection (k) of Section 1-75 of
HB1700 Enrolled - 307 - LRB104 08228 SPS 18278 b
1 this Act, the award of contracts for the
2 procurement of renewable energy credits shall be
3 suspended or reduced only at the conclusion of the
4 program year in which the notice provided for
5 under item (iii) of this subparagraph (E-5) is
6 made.
7 (ee) The contract shall provide that, so long
8 as at least one of: (i) the cost recovery
9 mechanisms referenced in subsection (k) of Section
10 16-108 and subsection (l) of Section 16-111.5 of
11 the Public Utilities Act remains in full force
12 without limitation or (ii) the utility is
13 otherwise authorized and or entitled to full,
14 prompt, and uninterrupted recovery of its costs
15 through any other mechanism, then such seller
16 shall be entitled to full, prompt, and
17 uninterrupted payment under the applicable
18 contract notwithstanding the application of this
19 subparagraph (E).
20 (F) If the limitation on the amount of renewable
21 energy resources procured in subparagraph (E) of this
22 paragraph (1) prevents the Agency from meeting all of the
23 goals in this subsection (c), the Agency's long-term plan
24 shall prioritize compliance with the requirements of this
25 subsection (c) regarding renewable energy credits in the
26 following order:
HB1700 Enrolled - 308 - LRB104 08228 SPS 18278 b
1 (i) renewable energy credits under existing
2 contractual obligations as of June 1, 2021;
3 (i-5) funding for the Illinois Solar for All
4 Program, as described in subparagraph (O) of this
5 paragraph (1);
6 (ii) renewable energy credits necessary to comply
7 with the new wind and new photovoltaic procurement
8 requirements described in items (i) through (iii) of
9 subparagraph (C) of this paragraph (1); and
10 (iii) renewable energy credits necessary to meet
11 the remaining requirements of this subsection (c).
12 (G) The following provisions shall apply to the
13 Agency's procurement of renewable energy credits under
14 this subsection (c):
15 (i) Notwithstanding whether a long-term renewable
16 resources procurement plan has been approved, the
17 Agency shall conduct an initial forward procurement
18 for renewable energy credits from new utility-scale
19 wind projects within 160 days after June 1, 2017 (the
20 effective date of Public Act 99-906). For the purposes
21 of this initial forward procurement, the Agency shall
22 solicit 15-year contracts for delivery of 1,000,000
23 renewable energy credits delivered annually from new
24 utility-scale wind projects to begin delivery on June
25 1, 2019, if available, but not later than June 1, 2021,
26 unless the project has delays in the establishment of
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1 an operating interconnection with the applicable
2 transmission or distribution system as a result of the
3 actions or inactions of the transmission or
4 distribution provider, or other causes for force
5 majeure as outlined in the procurement contract, in
6 which case, not later than June 1, 2022. Payments to
7 suppliers of renewable energy credits shall commence
8 upon delivery. Renewable energy credits procured under
9 this initial procurement shall be included in the
10 Agency's long-term plan and shall apply to all
11 renewable energy goals in this subsection (c).
12 (ii) Notwithstanding whether a long-term renewable
13 resources procurement plan has been approved, the
14 Agency shall conduct an initial forward procurement
15 for renewable energy credits from new utility-scale
16 solar projects and brownfield site photovoltaic
17 projects within one year after June 1, 2017 (the
18 effective date of Public Act 99-906). For the purposes
19 of this initial forward procurement, the Agency shall
20 solicit 15-year contracts for delivery of 1,000,000
21 renewable energy credits delivered annually from new
22 utility-scale solar projects and brownfield site
23 photovoltaic projects to begin delivery on June 1,
24 2019, if available, but not later than June 1, 2021,
25 unless the project has delays in the establishment of
26 an operating interconnection with the applicable
HB1700 Enrolled - 310 - LRB104 08228 SPS 18278 b
1 transmission or distribution system as a result of the
2 actions or inactions of the transmission or
3 distribution provider, or other causes for force
4 majeure as outlined in the procurement contract, in
5 which case, not later than June 1, 2022. The Agency may
6 structure this initial procurement in one or more
7 discrete procurement events. Payments to suppliers of
8 renewable energy credits shall commence upon delivery.
9 Renewable energy credits procured under this initial
10 procurement shall be included in the Agency's
11 long-term plan and shall apply to all renewable energy
12 goals in this subsection (c).
13 (iii) Notwithstanding whether the Commission has
14 approved the periodic long-term renewable resources
15 procurement plan revision described in Section
16 16-111.5 of the Public Utilities Act, the Agency shall
17 conduct at least one subsequent forward procurement
18 for renewable energy credits from new utility-scale
19 wind projects, new utility-scale solar projects, and
20 new brownfield site photovoltaic projects within 240
21 days after the effective date of this amendatory Act
22 of the 102nd General Assembly in quantities necessary
23 to meet the requirements of subparagraph (C) of this
24 paragraph (1) through the delivery year beginning June
25 1, 2021.
26 (iv) Notwithstanding whether the Commission has
HB1700 Enrolled - 311 - LRB104 08228 SPS 18278 b
1 approved the periodic long-term renewable resources
2 procurement plan revision described in Section
3 16-111.5 of the Public Utilities Act, the Agency shall
4 open capacity for each category in the Adjustable
5 Block program within 90 days after the effective date
6 of this amendatory Act of the 102nd General Assembly
7 manner:
8 (1) The Agency shall open the first block of
9 annual capacity for the category described in item
10 (i) of subparagraph (K) of this paragraph (1). The
11 first block of annual capacity for item (i) shall
12 be for at least 75 megawatts of total nameplate
13 capacity. The price of the renewable energy credit
14 for this block of capacity shall be 4% less than
15 the price of the last open block in this category.
16 Projects on a waitlist shall be awarded contracts
17 first in the order in which they appear on the
18 waitlist. Notwithstanding anything to the
19 contrary, for those renewable energy credits that
20 qualify and are procured under this subitem (1) of
21 this item (iv), the renewable energy credit
22 delivery contract value shall be paid in full,
23 based on the estimated generation during the first
24 15 years of operation, by the contracting
25 utilities at the time that the facility producing
26 the renewable energy credits is interconnected at
HB1700 Enrolled - 312 - LRB104 08228 SPS 18278 b
1 the distribution system level of the utility and
2 verified as energized and in compliance by the
3 Program Administrator. The electric utility shall
4 receive and retire all renewable energy credits
5 generated by the project for the first 15 years of
6 operation. Renewable energy credits generated by
7 the project thereafter shall not be transferred
8 under the renewable energy credit delivery
9 contract with the counterparty electric utility.
10 (2) The Agency shall open the first block of
11 annual capacity for the category described in item
12 (ii) of subparagraph (K) of this paragraph (1).
13 The first block of annual capacity for item (ii)
14 shall be for at least 75 megawatts of total
15 nameplate capacity.
16 (A) The price of the renewable energy
17 credit for any project on a waitlist for this
18 category before the opening of this block
19 shall be 4% less than the price of the last
20 open block in this category. Projects on the
21 waitlist shall be awarded contracts first in
22 the order in which they appear on the
23 waitlist. Any projects that are less than or
24 equal to 25 kilowatts in size on the waitlist
25 for this capacity shall be moved to the
26 waitlist for paragraph (1) of this item (iv).
HB1700 Enrolled - 313 - LRB104 08228 SPS 18278 b
1 Notwithstanding anything to the contrary,
2 projects that were on the waitlist prior to
3 opening of this block shall not be required to
4 be in compliance with the requirements of
5 subparagraph (Q) of this paragraph (1) of this
6 subsection (c). Notwithstanding anything to
7 the contrary, for those renewable energy
8 credits procured from projects that were on
9 the waitlist for this category before the
10 opening of this block 20% of the renewable
11 energy credit delivery contract value, based
12 on the estimated generation during the first
13 15 years of operation, shall be paid by the
14 contracting utilities at the time that the
15 facility producing the renewable energy
16 credits is interconnected at the distribution
17 system level of the utility and verified as
18 energized by the Program Administrator. The
19 remaining portion shall be paid ratably over
20 the subsequent 4-year period. The electric
21 utility shall receive and retire all renewable
22 energy credits generated by the project during
23 the first 15 years of operation. Renewable
24 energy credits generated by the project
25 thereafter shall not be transferred under the
26 renewable energy credit delivery contract with
HB1700 Enrolled - 314 - LRB104 08228 SPS 18278 b
1 the counterparty electric utility.
2 (B) The price of renewable energy credits
3 for any project not on the waitlist for this
4 category before the opening of the block shall
5 be determined and published by the Agency.
6 Projects not on a waitlist as of the opening
7 of this block shall be subject to the
8 requirements of subparagraph (Q) of this
9 paragraph (1), as applicable. Projects not on
10 a waitlist as of the opening of this block
11 shall be subject to the contract provisions
12 outlined in item (iii) of subparagraph (L) of
13 this paragraph (1). The Agency shall strive to
14 publish updated prices and an updated
15 renewable energy credit delivery contract as
16 quickly as possible.
17 (3) For opening the first 2 blocks of annual
18 capacity for projects participating in item (iii)
19 of subparagraph (K) of paragraph (1) of subsection
20 (c), projects shall be selected exclusively from
21 those projects on the ordinal waitlists of
22 community renewable generation projects
23 established by the Agency based on the status of
24 those ordinal waitlists as of December 31, 2020,
25 and only those projects previously determined to
26 be eligible for the Agency's April 2019 community
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1 solar project selection process.
2 The first 2 blocks of annual capacity for item
3 (iii) shall be for 250 megawatts of total
4 nameplate capacity, with both blocks opening
5 simultaneously under the schedule outlined in the
6 paragraphs below. Projects shall be selected as
7 follows:
8 (A) The geographic balance of selected
9 projects shall follow the Group classification
10 found in the Agency's Revised Long-Term
11 Renewable Resources Procurement Plan, with 70%
12 of capacity allocated to projects on the Group
13 B waitlist and 30% of capacity allocated to
14 projects on the Group A waitlist.
15 (B) Contract awards for waitlisted
16 projects shall be allocated proportionate to
17 the total nameplate capacity amount across
18 both ordinal waitlists associated with that
19 applicant firm or its affiliates, subject to
20 the following conditions.
21 (i) Each applicant firm having a
22 waitlisted project eligible for selection
23 shall receive no less than 500 kilowatts
24 in awarded capacity across all groups, and
25 no approved vendor may receive more than
26 20% of each Group's waitlist allocation.
HB1700 Enrolled - 316 - LRB104 08228 SPS 18278 b
1 (ii) Each applicant firm, upon
2 receiving an award of program capacity
3 proportionate to its waitlisted capacity,
4 may then determine which waitlisted
5 projects it chooses to be selected for a
6 contract award up to that capacity amount.
7 (iii) Assuming all other program
8 requirements are met, applicant firms may
9 adjust the nameplate capacity of applicant
10 projects without losing waitlist
11 eligibility, so long as no project is
12 greater than 2,000 kilowatts in size.
13 (iv) Assuming all other program
14 requirements are met, applicant firms may
15 adjust the expected production associated
16 with applicant projects, subject to
17 verification by the Program Administrator.
18 (C) After a review of affiliate
19 information and the current ordinal waitlists,
20 the Agency shall announce the nameplate
21 capacity award amounts associated with
22 applicant firms no later than 90 days after
23 the effective date of this amendatory Act of
24 the 102nd General Assembly.
25 (D) Applicant firms shall submit their
26 portfolio of projects used to satisfy those
HB1700 Enrolled - 317 - LRB104 08228 SPS 18278 b
1 contract awards no less than 90 days after the
2 Agency's announcement. The total nameplate
3 capacity of all projects used to satisfy that
4 portfolio shall be no greater than the
5 Agency's nameplate capacity award amount
6 associated with that applicant firm. An
7 applicant firm may decline, in whole or in
8 part, its nameplate capacity award without
9 penalty, with such unmet capacity rolled over
10 to the next block opening for project
11 selection under item (iii) of subparagraph (K)
12 of this subsection (c). Any projects not
13 included in an applicant firm's portfolio may
14 reapply without prejudice upon the next block
15 reopening for project selection under item
16 (iii) of subparagraph (K) of this subsection
17 (c).
18 (E) The renewable energy credit delivery
19 contract shall be subject to the contract and
20 payment terms outlined in item (iv) of
21 subparagraph (L) of this subsection (c).
22 Contract instruments used for this
23 subparagraph shall contain the following
24 terms:
25 (i) Renewable energy credit prices
26 shall be fixed, without further adjustment
HB1700 Enrolled - 318 - LRB104 08228 SPS 18278 b
1 under any other provision of this Act or
2 for any other reason, at 10% lower than
3 prices applicable to the last open block
4 for this category, inclusive of any adders
5 available for achieving a minimum of 50%
6 of subscribers to the project's nameplate
7 capacity being residential or small
8 commercial customers with subscriptions of
9 below 25 kilowatts in size;
10
11 (ii) A requirement that a minimum of
12 50% of subscribers to the project's
13 nameplate capacity be residential or small
14 commercial customers with subscriptions of
15 below 25 kilowatts in size;
16
17 (iii) Permission for the ability of a
18 contract holder to substitute projects
19 with other waitlisted projects without
20 penalty should a project receive a
21 non-binding estimate of costs to construct
22 the interconnection facilities and any
23 required distribution upgrades associated
24 with that project of greater than 30 cents
25 per watt AC of that project's nameplate
26 capacity. In developing the applicable
contract instrument, the Agency may
consider whether other circumstances
HB1700 Enrolled - 319 - LRB104 08228 SPS 18278 b
1 outside of the control of the applicant
2 firm should also warrant project
3 substitution rights.
4 The Agency shall publish a finalized
5 updated renewable energy credit delivery
6 contract developed consistent with these terms
7 and conditions no less than 30 days before
8 applicant firms must submit their portfolio of
9 projects pursuant to item (D).
10 (F) To be eligible for an award, the
11 applicant firm shall certify that not less
12 than prevailing wage, as determined pursuant
13 to the Illinois Prevailing Wage Act, was or
14 will be paid to employees who are engaged in
15 construction activities associated with a
16 selected project.
17 (4) The Agency shall open the first block of
18 annual capacity for the category described in item
19 (iv) of subparagraph (K) of this paragraph (1).
20 The first block of annual capacity for item (iv)
21 shall be for at least 50 megawatts of total
22 nameplate capacity. Renewable energy credit prices
23 shall be fixed, without further adjustment under
24 any other provision of this Act or for any other
25 reason, at the price in the last open block in the
26 category described in item (ii) of subparagraph
HB1700 Enrolled - 320 - LRB104 08228 SPS 18278 b
1 (K) of this paragraph (1). Pricing for future
2 blocks of annual capacity for this category may be
3 adjusted in the Agency's second revision to its
4 Long-Term Renewable Resources Procurement Plan.
5 Projects in this category shall be subject to the
6 contract terms outlined in item (iv) of
7 subparagraph (L) of this paragraph (1).
8 (5) The Agency shall open the equivalent of 2
9 years of annual capacity for the category
10 described in item (v) of subparagraph (K) of this
11 paragraph (1). The first block of annual capacity
12 for item (v) shall be for at least 10 megawatts of
13 total nameplate capacity. Notwithstanding the
14 provisions of item (v) of subparagraph (K) of this
15 paragraph (1), for the purpose of this initial
16 block, the agency shall accept new project
17 applications intended to increase the diversity of
18 areas hosting community solar projects, the
19 business models of projects, and the size of
20 projects, as described by the Agency in its
21 long-term renewable resources procurement plan
22 that is approved as of the effective date of this
23 amendatory Act of the 102nd General Assembly.
24 Projects in this category shall be subject to the
25 contract terms outlined in item (iii) of
26 subsection (L) of this paragraph (1).
HB1700 Enrolled - 321 - LRB104 08228 SPS 18278 b
1 (6) The Agency shall open the first blocks of
2 annual capacity for the category described in item
3 (vi) of subparagraph (K) of this paragraph (1),
4 with allocations of capacity within the block
5 generally matching the historical share of block
6 capacity allocated between the category described
7 in items (i) and (ii) of subparagraph (K) of this
8 paragraph (1). The first two blocks of annual
9 capacity for item (vi) shall be for at least 75
10 megawatts of total nameplate capacity. The price
11 of renewable energy credits for the blocks of
12 capacity shall be 4% less than the price of the
13 last open blocks in the categories described in
14 items (i) and (ii) of subparagraph (K) of this
15 paragraph (1). Pricing for future blocks of annual
16 capacity for this category may be adjusted in the
17 Agency's second revision to its Long-Term
18 Renewable Resources Procurement Plan. Projects in
19 this category shall be subject to the applicable
20 contract terms outlined in items (ii) and (iii) of
21 subparagraph (L) of this paragraph (1).
22 (v) Upon the effective date of this amendatory Act
23 of the 102nd General Assembly, for all competitive
24 procurements and any procurements of renewable energy
25 credit from new utility-scale wind and new
26 utility-scale photovoltaic projects, the Agency shall
HB1700 Enrolled - 322 - LRB104 08228 SPS 18278 b
1 procure indexed renewable energy credits and direct
2 respondents to offer a strike price.
3 (1) The purchase price of the indexed
4 renewable energy credit payment shall be
5 calculated for each settlement period. That
6 payment, for any settlement period, shall be equal
7 to the difference resulting from subtracting the
8 strike price from the index price for that
9 settlement period. If this difference results in a
10 negative number, the indexed REC counterparty
11 shall owe the seller the absolute value multiplied
12 by the quantity of energy produced in the relevant
13 settlement period. If this difference results in a
14 positive number, the seller shall owe the indexed
15 REC counterparty this amount multiplied by the
16 quantity of energy produced in the relevant
17 settlement period.
18 (2) Parties shall cash settle every month,
19 summing up all settlements (both positive and
20 negative, if applicable) for the prior month.
21 (3) To ensure funding in the annual budget
22 established under subparagraph (E) for indexed
23 renewable energy credit procurements for each year
24 of the term of such contracts, which must have a
25 minimum tenure of 20 calendar years, the
26 procurement administrator, Agency, Commission
HB1700 Enrolled - 323 - LRB104 08228 SPS 18278 b
1 staff, and procurement monitor shall quantify the
2 annual cost of the contract by utilizing one or
3 more industry-standard, third-party forward price
4 curves for energy at the appropriate hub or load
5 zone, including the estimated magnitude and timing
6 of the price effects related to federal carbon
7 controls. Each forward price curve shall contain a
8 specific value of the forecasted market price of
9 electricity for each annual delivery year of the
10 contract. For procurement planning purposes, the
11 impact on the annual budget for the cost of
12 indexed renewable energy credits for each delivery
13 year shall be determined as the expected annual
14 contract expenditure for that year, equaling the
15 difference between (i) the sum across all relevant
16 contracts of the applicable strike price
17 multiplied by contract quantity and (ii) the sum
18 across all relevant contracts of the forward price
19 curve for the applicable load zone for that year
20 multiplied by contract quantity. The contracting
21 utility shall not assume an obligation in excess
22 of the estimated annual cost of the contracts for
23 indexed renewable energy credits. Forward curves
24 shall be revised on an annual basis as updated
25 forward price curves are released and filed with
26 the Commission in the proceeding approving the
HB1700 Enrolled - 324 - LRB104 08228 SPS 18278 b
1 Agency's most recent long-term renewable resources
2 procurement plan. If the expected contract spend
3 is higher or lower than the total quantity of
4 contracts multiplied by the forward price curve
5 value for that year, the forward price curve shall
6 be updated by the procurement administrator, in
7 consultation with the Agency, Commission staff,
8 and procurement monitors, using then-currently
9 available price forecast data and additional
10 budget dollars shall be obligated or reobligated
11 as appropriate.
12 (4) To ensure that indexed renewable energy
13 credit prices remain predictable and affordable,
14 the Agency may consider the institution of a price
15 collar on REC prices paid under indexed renewable
16 energy credit procurements establishing floor and
17 ceiling REC prices applicable to indexed REC
18 contract prices. Any price collars applicable to
19 indexed REC procurements shall be proposed by the
20 Agency through its long-term renewable resources
21 procurement plan.
22 (vi) All procurements under this subparagraph (G),
23 including the procurement of renewable energy credits
24 from hydropower facilities, shall comply with the
25 geographic requirements in subparagraph (I) of this
26 paragraph (1) and shall follow the procurement
HB1700 Enrolled - 325 - LRB104 08228 SPS 18278 b
1 processes and procedures described in this Section and
2 Section 16-111.5 of the Public Utilities Act to the
3 extent practicable, and these processes and procedures
4 may be expedited to accommodate the schedule
5 established by this subparagraph (G). To ensure the
6 successful development of new renewable energy
7 projects supported through competitive procurements,
8 for any procurements conducted under items (i), (ii),
9 (iii), and (v) of this subparagraph (G) and any other
10 procurement of new utility-scale wind or utility-scale
11 solar projects that were entered into prior to January
12 1, 2025, the Agency shall allow, upon a demonstration
13 of need to ensure the commercial viability of a
14 project, for a one-time, post-award renegotiation of
15 select contract terms prior to the project's
16 commercial operation date through bilateral
17 negotiation between the Agency, the buyer, and a
18 winning bidder. Contract terms subject to
19 renegotiation may include the project map, as defined
20 under the applicable competitive solicitation, the
21 real estate footprint or any limitations thereof, the
22 location of the generators, or a potential reduction
23 in the quantity of renewable energy credits to be
24 delivered. Provisions related to a renewable energy
25 credit delivery shortfall and the event of default may
26 be replaced with similar provisions approved by the
HB1700 Enrolled - 326 - LRB104 08228 SPS 18278 b
1 Agency in subsequent years or subsequent to a
2 successful bid. Post-award renegotiation of
3 competitively bid renewable energy credit contracts
4 entered into prior to January 1, 2025 shall not be
5 permitted to the extent such renegotiation would
6 result in (1) the point of interconnection being
7 within the service area of a different state, a
8 different regional transmission organization zone, or
9 a different regional transmission organization, (2)
10 the generator no longer meeting the definition of the
11 resource category for which the winning bidder was
12 originally awarded a contract, (3) the generator no
13 longer meeting the Agency's public interest criteria
14 as established in the long-term renewable resources
15 plan in effect at the time of the contract award, or
16 (4) a change to material terms of the renewable energy
17 credit contract unrelated to project land or footprint
18 or the number of renewable energy credits to be
19 delivered, including the applicable bid price or
20 strike price. If the Agency, the buyer, and the
21 winning bidder reach an agreement on amended terms,
22 then, upon petition by the winning bidder or current
23 seller, the Commission shall issue an order directing
24 the utility counterparty to execute an amendment
25 drafted by the Agency with the revised terms to the
26 renewable energy credit contract, the product order,
HB1700 Enrolled - 327 - LRB104 08228 SPS 18278 b
1 or both. The Agency shall provide the amendment to the
2 utility within 15 business days after the Commission's
3 order, and the utility shall execute the amendment no
4 more than 7 calendar days after delivery by the
5 Agency.
6 (vii) On and after the effective date of this
7 amendatory Act of the 103rd General Assembly, for all
8 procurements of renewable energy credits from
9 hydropower facilities, the Agency shall establish
10 contract terms designed to optimize existing
11 hydropower facilities through modernization or
12 retooling and establish new hydropower facilities at
13 existing dams. Procurements made under this item (vii)
14 shall prioritize projects located in designated
15 environmental justice communities, as defined in
16 subsection (b) of Section 1-56 of this Act, or in
17 projects located in units of local government with
18 median incomes that do not exceed 82% of the median
19 income of the State.
20 (H) The procurement of renewable energy resources for
21 a given delivery year shall be reduced as described in
22 this subparagraph (H) if an alternative retail electric
23 supplier meets the requirements described in this
24 subparagraph (H).
25 (i) Within 45 days after June 1, 2017 (the
26 effective date of Public Act 99-906), an alternative
HB1700 Enrolled - 328 - LRB104 08228 SPS 18278 b
1 retail electric supplier or its successor shall submit
2 an informational filing to the Illinois Commerce
3 Commission certifying that, as of December 31, 2015,
4 the alternative retail electric supplier owned one or
5 more electric generating facilities that generates
6 renewable energy resources as defined in Section 1-10
7 of this Act, provided that such facilities are not
8 powered by wind or photovoltaics, and the facilities
9 generate one renewable energy credit for each
10 megawatthour of energy produced from the facility.
11 The informational filing shall identify each
12 facility that was eligible to satisfy the alternative
13 retail electric supplier's obligations under Section
14 16-115D of the Public Utilities Act as described in
15 this item (i).
16 (ii) For a given delivery year, the alternative
17 retail electric supplier may elect to supply its
18 retail customers with renewable energy credits from
19 the facility or facilities described in item (i) of
20 this subparagraph (H) that continue to be owned by the
21 alternative retail electric supplier.
22 (iii) The alternative retail electric supplier
23 shall notify the Agency and the applicable utility, no
24 later than February 28 of the year preceding the
25 applicable delivery year or 15 days after June 1, 2017
26 (the effective date of Public Act 99-906), whichever
HB1700 Enrolled - 329 - LRB104 08228 SPS 18278 b
1 is later, of its election under item (ii) of this
2 subparagraph (H) to supply renewable energy credits to
3 retail customers of the utility. Such election shall
4 identify the amount of renewable energy credits to be
5 supplied by the alternative retail electric supplier
6 to the utility's retail customers and the source of
7 the renewable energy credits identified in the
8 informational filing as described in item (i) of this
9 subparagraph (H), subject to the following
10 limitations:
11 For the delivery year beginning June 1, 2018,
12 the maximum amount of renewable energy credits to
13 be supplied by an alternative retail electric
14 supplier under this subparagraph (H) shall be 68%
15 multiplied by 25% multiplied by 14.5% multiplied
16 by the amount of metered electricity
17 (megawatt-hours) delivered by the alternative
18 retail electric supplier to Illinois retail
19 customers during the delivery year ending May 31,
20 2016.
21 For delivery years beginning June 1, 2019 and
22 each year thereafter, the maximum amount of
23 renewable energy credits to be supplied by an
24 alternative retail electric supplier under this
25 subparagraph (H) shall be 68% multiplied by 50%
26 multiplied by 16% multiplied by the amount of
HB1700 Enrolled - 330 - LRB104 08228 SPS 18278 b
1 metered electricity (megawatt-hours) delivered by
2 the alternative retail electric supplier to
3 Illinois retail customers during the delivery year
4 ending May 31, 2016, provided that the 16% value
5 shall increase by 1.5% each delivery year
6 thereafter to 25% by the delivery year beginning
7 June 1, 2025, and thereafter the 25% value shall
8 apply to each delivery year.
9 For each delivery year, the total amount of
10 renewable energy credits supplied by all alternative
11 retail electric suppliers under this subparagraph (H)
12 shall not exceed 9% of the Illinois target renewable
13 energy credit quantity. The Illinois target renewable
14 energy credit quantity for the delivery year beginning
15 June 1, 2018 is 14.5% multiplied by the total amount of
16 metered electricity (megawatt-hours) delivered in the
17 delivery year immediately preceding that delivery
18 year, provided that the 14.5% shall increase by 1.5%
19 each delivery year thereafter to 25% by the delivery
20 year beginning June 1, 2025, and thereafter the 25%
21 value shall apply to each delivery year.
22 If the requirements set forth in items (i) through
23 (iii) of this subparagraph (H) are met, the charges
24 that would otherwise be applicable to the retail
25 customers of the alternative retail electric supplier
26 under paragraph (6) of this subsection (c) for the
HB1700 Enrolled - 331 - LRB104 08228 SPS 18278 b
1 applicable delivery year shall be reduced by the ratio
2 of the quantity of renewable energy credits supplied
3 by the alternative retail electric supplier compared
4 to that supplier's target renewable energy credit
5 quantity. The supplier's target renewable energy
6 credit quantity for the delivery year beginning June
7 1, 2018 is 14.5% multiplied by the total amount of
8 metered electricity (megawatt-hours) delivered by the
9 alternative retail supplier in that delivery year,
10 provided that the 14.5% shall increase by 1.5% each
11 delivery year thereafter to 25% by the delivery year
12 beginning June 1, 2025, and thereafter the 25% value
13 shall apply to each delivery year.
14 On or before April 1 of each year, the Agency shall
15 annually publish a report on its website that
16 identifies the aggregate amount of renewable energy
17 credits supplied by alternative retail electric
18 suppliers under this subparagraph (H).
19 (I) The Agency shall design its long-term renewable
20 energy procurement plan to maximize the State's interest
21 in the health, safety, and welfare of its residents,
22 including but not limited to minimizing sulfur dioxide,
23 nitrogen oxide, particulate matter and other pollution
24 that adversely affects public health in this State,
25 increasing fuel and resource diversity in this State,
26 enhancing the reliability and resiliency of the
HB1700 Enrolled - 332 - LRB104 08228 SPS 18278 b
1 electricity distribution system in this State, meeting
2 goals to limit carbon dioxide emissions under federal or
3 State law, and contributing to a cleaner and healthier
4 environment for the citizens of this State. In order to
5 further these legislative purposes, renewable energy
6 credits shall be eligible to be counted toward the
7 renewable energy requirements of this subsection (c) if
8 they are generated from facilities located in this State.
9 The Agency may qualify renewable energy credits from
10 facilities located in states adjacent to Illinois or
11 renewable energy credits associated with the electricity
12 generated by a utility-scale wind energy facility or
13 utility-scale photovoltaic facility and transmitted by a
14 qualifying direct current project described in subsection
15 (b-5) of Section 8-406 of the Public Utilities Act to a
16 delivery point on the electric transmission grid located
17 in this State or a state adjacent to Illinois, if the
18 generator demonstrates and the Agency determines that the
19 operation of such facility or facilities will help promote
20 the State's interest in the health, safety, and welfare of
21 its residents based on the public interest criteria
22 described above. For the purposes of this Section,
23 renewable resources that are delivered via a high voltage
24 direct current converter station located in Illinois shall
25 be deemed generated in Illinois at the time and location
26 the energy is converted to alternating current by the high
HB1700 Enrolled - 333 - LRB104 08228 SPS 18278 b
1 voltage direct current converter station if the high
2 voltage direct current transmission line: (i) after the
3 effective date of this amendatory Act of the 102nd General
4 Assembly, was constructed with a project labor agreement;
5 (ii) is capable of transmitting electricity at 525kv;
6 (iii) has an Illinois converter station located and
7 interconnected in the region of the PJM Interconnection,
8 LLC; (iv) does not operate as a public utility; and (v) if
9 the high voltage direct current transmission line was
10 energized after June 1, 2023. To ensure that the public
11 interest criteria are applied to the procurement and given
12 full effect, the Agency's long-term procurement plan shall
13 describe in detail how each public interest factor shall
14 be considered and weighted for facilities located in
15 states adjacent to Illinois.
16 (J) In order to promote the competitive development of
17 renewable energy resources in furtherance of the State's
18 interest in the health, safety, and welfare of its
19 residents, renewable energy credits shall not be eligible
20 to be counted toward the renewable energy requirements of
21 this subsection (c) if they are sourced from a generating
22 unit whose costs were being recovered through rates
23 regulated by this State or any other state or states on or
24 after January 1, 2017. Each contract executed to purchase
25 renewable energy credits under this subsection (c) shall
26 provide for the contract's termination if the costs of the
HB1700 Enrolled - 334 - LRB104 08228 SPS 18278 b
1 generating unit supplying the renewable energy credits
2 subsequently begin to be recovered through rates regulated
3 by this State or any other state or states; and each
4 contract shall further provide that, in that event, the
5 supplier of the credits must return 110% of all payments
6 received under the contract. Amounts returned under the
7 requirements of this subparagraph (J) shall be retained by
8 the utility and all of these amounts shall be used for the
9 procurement of additional renewable energy credits from
10 new wind or new photovoltaic resources as defined in this
11 subsection (c). The long-term plan shall provide that
12 these renewable energy credits shall be procured in the
13 next procurement event.
14 Notwithstanding the limitations of this subparagraph
15 (J), renewable energy credits sourced from generating
16 units that are constructed, purchased, owned, or leased by
17 an electric utility as part of an approved project,
18 program, or pilot under Section 1-56 of this Act shall be
19 eligible to be counted toward the renewable energy
20 requirements of this subsection (c), regardless of how the
21 costs of these units are recovered. As long as a
22 generating unit or an identifiable portion of a generating
23 unit has not had and does not have its costs recovered
24 through rates regulated by this State or any other state,
25 HVDC renewable energy credits associated with that
26 generating unit or identifiable portion thereof shall be
HB1700 Enrolled - 335 - LRB104 08228 SPS 18278 b
1 eligible to be counted toward the renewable energy
2 requirements of this subsection (c).
3 (K) The long-term renewable resources procurement plan
4 developed by the Agency in accordance with subparagraph
5 (A) of this paragraph (1) shall include an Adjustable
6 Block program for the procurement of renewable energy
7 credits from new photovoltaic projects that are
8 distributed renewable energy generation devices or new
9 photovoltaic community renewable generation projects. The
10 Adjustable Block program shall be generally designed to
11 provide for the steady, predictable, and sustainable
12 growth of new solar photovoltaic development in Illinois.
13 To this end, the Adjustable Block program shall provide a
14 transparent annual schedule of prices and quantities to
15 enable the photovoltaic market to scale up and for
16 renewable energy credit prices to adjust at a predictable
17 rate over time. The prices set by the Adjustable Block
18 program can be reflected as a set value or as the product
19 of a formula.
20 The Adjustable Block program shall include for each
21 category of eligible projects for each delivery year: a
22 single block of nameplate capacity, a price for renewable
23 energy credits within that block, and the terms and
24 conditions for securing a spot on a waitlist once the
25 block is fully committed or reserved. Except as outlined
26 below, the waitlist of projects in a given year will carry
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1 over to apply to the subsequent year when another block is
2 opened. Only projects energized on or after June 1, 2017
3 shall be eligible for the Adjustable Block program. For
4 each category for each delivery year the Agency shall
5 determine the amount of generation capacity in each block,
6 and the purchase price for each block, provided that the
7 purchase price provided and the total amount of generation
8 in all blocks for all categories shall be sufficient to
9 meet the goals in this subsection (c). The Agency shall
10 strive to issue a single block sized to provide for
11 stability and market growth. The Agency shall establish
12 program eligibility requirements that ensure that projects
13 that enter the program are sufficiently mature to indicate
14 a demonstrable path to completion. The Agency may
15 periodically review its prior decisions establishing the
16 amount of generation capacity in each block, and the
17 purchase price for each block, and may propose, on an
18 expedited basis, changes to these previously set values,
19 including but not limited to redistributing these amounts
20 and the available funds as necessary and appropriate,
21 subject to Commission approval as part of the periodic
22 plan revision process described in Section 16-111.5 of the
23 Public Utilities Act. The Agency may define different
24 block sizes, purchase prices, or other distinct terms and
25 conditions for projects located in different utility
26 service territories if the Agency deems it necessary to
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1 meet the goals in this subsection (c).
2 The Adjustable Block program shall include the
3 following categories in at least the following amounts:
4 (i) At least 20% from distributed renewable energy
5 generation devices with a nameplate capacity of no
6 more than 25 kilowatts.
7 (ii) At least 20% from distributed renewable
8 energy generation devices with a nameplate capacity of
9 more than 25 kilowatts and no more than 5,000
10 kilowatts. The Agency may create sub-categories within
11 this category to account for the differences between
12 projects for small commercial customers, large
13 commercial customers, and public or non-profit
14 customers. A project shall not be colocated with one
15 or more other distributed renewable energy generation
16 projects if the aggregate nameplate capacity of the
17 projects exceeds 5,000 kilowatts AC. Notwithstanding
18 any other provision of this Section, if 2 or more
19 projects are developed, owned, or controlled by or
20 originate from the same developer or an affiliated
21 developer and the projects serve affiliated loads, the
22 projects shall be colocated if the projects are
23 located on adjacent parcels. If 2 or more projects are
24 developed, owned, or controlled by or originate from
25 the same developer and the projects serve unaffiliated
26 loads, the projects may be colocated if documentation
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1 indicates affiliated management and ownership in the
2 pre-development, development, construction, and
3 management of the projects and the projects are
4 located on a single or adjacent parcels.
5 Notwithstanding any subsequent transfer, assignment,
6 or conveyance of ownership or development rights to
7 separate legal entities, the Agency shall consider, in
8 its determination of whether projects are affiliated,
9 evidence that the projects were pre-developed by the
10 same legal entity or an affiliated entity. If the
11 Agency determines the projects are affiliated, the
12 projects shall be treated as colocated for purposes of
13 aggregate nameplate capacity limitations and renewable
14 energy credit pricing adjustments. The Agency shall
15 make exceptions on a case-by-case basis if it is
16 demonstrated that projects on one parcel or projects
17 on adjacent parcels are unaffiliated. For purposes of
18 determining colocation, an approved vendor who submits
19 an application for a distributed renewable energy
20 generation project shall be required to submit an
21 affidavit attesting that the project is not affiliated
22 with any other distributed renewable energy generation
23 project such that, if the 2 projects were deemed
24 colocated, the projects would exceed the 5,000
25 kilowatts nameplate capacity limitation. The receipt
26 of an affidavit shall not restrict the Agency's
HB1700 Enrolled - 339 - LRB104 08228 SPS 18278 b
1 ability to investigate and determine whether the
2 project is, in fact, colocated.
3 For purposes of this item (ii):
4 "Affiliate" has the meaning given to that term in
5 subitem (3) of item (iii) of this subparagraph (K).
6 "Colocated" means 2 or more distributed renewable
7 energy generation projects that are located on a
8 single parcel, except for projects where the owner of
9 the applicable retail electric account is confirmed to
10 be unaffiliated and the projects serve distinct
11 electrical loads.
12 "Control" has the meaning given to that term in
13 subitem (3) of item (iii) of this subparagraph (K).
14 (iii) At least 30% from photovoltaic community
15 renewable generation projects. Capacity for this
16 category for the first 2 delivery years after the
17 effective date of this amendatory Act of the 102nd
18 General Assembly shall be allocated to waitlist
19 projects as provided in paragraph (3) of item (iv) of
20 subparagraph (G). Starting in the third delivery year
21 after the effective date of this amendatory Act of the
22 102nd General Assembly or earlier if the Agency
23 determines there is additional capacity needed for to
24 meet previous delivery year requirements, the
25 following shall apply:
26 (1) the Agency shall select projects on a
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1 first-come, first-serve basis, however the Agency
2 may suggest additional methods to prioritize
3 projects that are submitted at the same time;
4 (2) projects shall have subscriptions of 25 kW
5 or less for at least 50% of the facility's
6 nameplate capacity and the Agency shall price the
7 renewable energy credits with that as a factor;
8 (3) projects shall not be colocated with one
9 or more other photovoltaic community renewable
10 generation projects such that the aggregate
11 nameplate capacity exceeds 10,000 kilowatts. The
12 total nameplate capacity of colocated projects
13 shall be the sum of the nameplate capacities of
14 the individual projects. For purposes of this
15 subitem (3), separate legal formation of approved
16 vendors, owners, or developers shall not preclude
17 a finding of affiliation by the Agency. Evidence
18 of affiliation may include, but is not limited to,
19 shared personnel, common contractual or financing
20 arrangements, a shared interconnection agreement,
21 distinct interconnection agreements obtained by
22 the same pre-development entity that are
23 subsequently sold to distinct legal entities,
24 familial relationships, or any demonstrable
25 pattern of coordinated action in the
26 pre-development, development, construction, or
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1 management of photovoltaic community renewable
2 generation projects.
3 The Agency shall determine affiliation based
4 on evidence that projects either (i) share a
5 common origin on a parcel that has been subdivided
6 in the 5 years before the date of application or
7 (ii) were pre-developed before the beginning of
8 construction by the same legal entity or an
9 affiliated legal entity. The determination shall
10 be made notwithstanding any subsequent transfer,
11 assignment, or conveyance of ownership or
12 development rights to separate legal entities. If
13 the Agency determines the projects are affiliated,
14 the projects shall be treated as colocated for the
15 purposes of aggregate nameplate capacity
16 limitations and renewable energy credit pricing
17 adjustments. The Agency shall make exceptions to
18 this subitem (3) on a case-by-case basis if it is
19 demonstrated that projects on one parcel or
20 projects on adjacent parcels are unaffiliated.
21 A parcel shall not be divided into multiple
22 parcels within the 5 years before the submission
23 of a project application. If a parcel is divided
24 within the preceding 5 years, a colocation
25 determination shall be made based on the
26 boundaries of the previous undivided parcel.
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1 For purposes of determining colocation, an
2 approved vendor who submits an application for a
3 photovoltaic community renewable generation
4 project shall be required to submit an affidavit
5 attesting that (i) the parcel on which the project
6 is sited has not been subdivided within the 5
7 years preceding the project application and (ii)
8 the project is not affiliated with any other
9 photovoltaic community renewable generation energy
10 project in a manner that would cause the 2
11 projects, if deemed colocated, to exceed the
12 10,000 kilowatt nameplate capacity limitation. The
13 receipt of an affidavit shall not restrict the
14 Agency's ability to investigate and determine
15 whether the project is colocated.
16 Multiple photovoltaic community renewable
17 generation community solar projects sited on
18 distinct structures located on a single parcel
19 shall be considered colocated and must demonstrate
20 that the projects are unaffiliated in order to not
21 be considered colocated. Each colocated project
22 shall receive the renewable energy credit price
23 corresponding to the total, aggregated nameplate
24 capacity of the colocated systems, as determined
25 at the time the second project's application is
26 submitted to the Agency. If the second colocated
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1 project has been constructed and placed in service
2 prior to application, and was placed in service
3 more than 2 years after Commission approval of the
4 original project, the colocation pricing
5 adjustment shall not apply, and each project shall
6 receive the standalone renewable energy credit
7 price for its individual capacity.
8 For purposes of this subitem (3):
9 "Affiliate" means any other entity that,
10 directly or indirectly through one or more
11 intermediaries, is controlled by or is under
12 common control of the primary entity or a third
13 entity. "Affiliate" includes family members for
14 the purposes of colocation between projects.
15 "Affiliate" does not include entities that have
16 shared sales or revenue-sharing arrangements or
17 common debt and equity financing arrangements.
18 "Colocated" means 2 or more photovoltaic
19 community renewable generation projects located on
20 a single parcel or adjacent parcels, unless it is
21 demonstrated that the projects are developed by
22 unaffiliated entities.
23 "Control" means the possession, directly or
24 indirectly, of the power to direct the management
25 and policies of an entity; and
26 (4) projects greater than 2 MW may not apply
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1 until after the approval of the Agency's revised
2 Long-Term Renewable Resources Procurement Plan
3 after the effective date of this amendatory Act of
4 the 102nd General Assembly.
5 (iv) At least 15% from distributed renewable
6 generation devices or photovoltaic community renewable
7 generation projects installed on public school land.
8 The Agency may create subcategories within this
9 category to account for the differences between
10 project size or location. Projects located within
11 environmental justice communities or within
12 Organizational Units that fall within Tier 1 or Tier 2
13 shall be given priority. Each of the Agency's periodic
14 updates to its long-term renewable resources
15 procurement plan to incorporate the procurement
16 described in this subparagraph (iv) shall also include
17 the proposed quantities or blocks, pricing, and
18 contract terms applicable to the procurement as
19 indicated herein. In each such update and procurement,
20 the Agency shall set the renewable energy credit price
21 and establish payment terms for the renewable energy
22 credits procured pursuant to this subparagraph (iv)
23 that make it feasible and affordable for public
24 schools to install photovoltaic distributed renewable
25 energy devices on their premises, including, but not
26 limited to, those public schools subject to the
HB1700 Enrolled - 345 - LRB104 08228 SPS 18278 b
1 prioritization provisions of this subparagraph. For
2 the purposes of this item (iv):
3 "Environmental Justice Community" shall have the
4 same meaning set forth in the Agency's long-term
5 renewable resources procurement plan;
6 "Organization Unit", "Tier 1" and "Tier 2" shall
7 have the meanings set for in Section 18-8.15 of the
8 School Code;
9 "Public schools" shall have the meaning set forth
10 in Section 1-3 of the School Code and includes public
11 institutions of higher education, as defined in the
12 Board of Higher Education Act.
13 (v) At least 5% from community-driven community
14 solar projects intended to provide more direct and
15 tangible connection and benefits to the communities
16 which they serve or in which they operate and,
17 additionally, to increase the variety of community
18 solar locations, models, and options in Illinois. As
19 part of its long-term renewable resources procurement
20 plan, the Agency shall develop selection criteria for
21 projects participating in this category. Nothing in
22 this Section shall preclude the Agency from creating a
23 selection process that maximizes community ownership
24 and community benefits in selecting projects to
25 receive renewable energy credits. Selection criteria
26 shall include:
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1 (1) community ownership or community
2 wealth-building;
3 (2) additional direct and indirect community
4 benefit, beyond project participation as a
5 subscriber, including, but not limited to,
6 economic, environmental, social, cultural, and
7 physical benefits;
8 (3) meaningful involvement in project
9 organization and development by community members
10 or nonprofit organizations or public entities
11 located in or serving the community;
12 (4) engagement in project operations and
13 management by nonprofit organizations, public
14 entities, or community members; and
15 (5) whether a project is developed in response
16 to a site-specific RFP developed by community
17 members or a nonprofit organization or public
18 entity located in or serving the community.
19 Selection criteria may also prioritize projects
20 that:
21 (1) are developed in collaboration with or to
22 provide complementary opportunities for the Clean
23 Jobs Workforce Network Program, the Illinois
24 Climate Works Preapprenticeship Program, the
25 Returning Residents Clean Jobs Training Program,
26 the Clean Energy Contractor Incubator Program, or
HB1700 Enrolled - 347 - LRB104 08228 SPS 18278 b
1 the Clean Energy Primes Contractor Accelerator
2 Program;
3 (2) increase the diversity of locations of
4 community solar projects in Illinois, including by
5 locating in urban areas and population centers;
6 (3) are located in Equity Investment Eligible
7 Communities;
8 (4) are not greenfield projects;
9 (5) serve only local subscribers;
10 (6) have a nameplate capacity that does not
11 exceed 500 kW;
12 (7) are developed by an equity eligible
13 contractor; or
14 (8) otherwise meaningfully advance the goals
15 of providing more direct and tangible connection
16 and benefits to the communities which they serve
17 or in which they operate and increasing the
18 variety of community solar locations, models, and
19 options in Illinois.
20 For the purposes of this item (v):
21 "Community" means a social unit in which people
22 come together regularly to effect change; a social
23 unit in which participants are marked by a cooperative
24 spirit, a common purpose, or shared interests or
25 characteristics; or a space understood by its
26 residents to be delineated through geographic
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1 boundaries or landmarks.
2 "Community benefit" means a range of services and
3 activities that provide affirmative, economic,
4 environmental, social, cultural, or physical value to
5 a community; or a mechanism that enables economic
6 development, high-quality employment, and education
7 opportunities for local workers and residents, or
8 formal monitoring and oversight structures such that
9 community members may ensure that those services and
10 activities respond to local knowledge and needs.
11 "Community ownership" means an arrangement in
12 which an electric generating facility is, or over time
13 will be, in significant part, owned collectively by
14 members of the community to which an electric
15 generating facility provides benefits; members of that
16 community participate in decisions regarding the
17 governance, operation, maintenance, and upgrades of
18 and to that facility; and members of that community
19 benefit from regular use of that facility.
20 Terms and guidance within these criteria that are
21 not defined in this item (v) shall be defined by the
22 Agency, with stakeholder input, during the development
23 of the Agency's long-term renewable resources
24 procurement plan. The Agency shall develop regular
25 opportunities for projects to submit applications for
26 projects under this category, and develop selection
HB1700 Enrolled - 349 - LRB104 08228 SPS 18278 b
1 criteria that gives preference to projects that better
2 meet individual criteria as well as projects that
3 address a higher number of criteria.
4 (vi) At least 10% from distributed renewable
5 energy generation devices, which includes distributed
6 renewable energy devices with a nameplate capacity
7 under 5,000 kilowatts or photovoltaic community
8 renewable generation projects, from applicants that
9 are equity eligible contractors. The Agency may create
10 subcategories within this category to account for the
11 differences between project size and type. The Agency
12 shall propose to increase the percentage in this item
13 (vi) over time to 40% based on factors, including, but
14 not limited to, the number of equity eligible
15 contractors and capacity used in this item (vi) in
16 previous delivery years.
17 The Agency shall propose a payment structure for
18 contracts executed pursuant to this paragraph under
19 which, upon a demonstration of qualification or need
20 under criteria established by the Agency that is
21 focused on supporting small and emerging businesses
22 and businesses that most acutely face barriers to the
23 access of capital, applicant firms are advanced
24 capital disbursed after contract execution but before
25 the contracted project's energization. The amount or
26 percentage of capital advanced prior to project
HB1700 Enrolled - 350 - LRB104 08228 SPS 18278 b
1 energization shall be sufficient to both cover any
2 increase in development costs resulting from
3 prevailing wage requirements or project-labor
4 agreements, and designed to overcome barriers in
5 access to capital faced by equity eligible
6 contractors. The amount or percentage of advanced
7 capital may vary by subcategory within this category
8 and by an applicant's demonstration of need, with such
9 levels to be established through the Long-Term
10 Renewable Resources Procurement Plan authorized under
11 subparagraph (A) of paragraph (1) of subsection (c) of
12 this Section and any application requirements or
13 evaluation criteria developed pursuant to the Plan.
14 Contracts developed featuring capital advanced
15 prior to a project's energization shall feature
16 provisions to ensure both the successful development
17 of applicant projects and the delivery of the
18 renewable energy credits for the full term of the
19 contract, including ongoing collateral requirements
20 and other provisions deemed necessary by the Agency,
21 and may include energization timelines longer than for
22 comparable project types. The percentage or amount of
23 capital advanced prior to project energization shall
24 not operate to increase the overall contract value,
25 however contracts executed under this subparagraph may
26 feature renewable energy credit prices higher than
HB1700 Enrolled - 351 - LRB104 08228 SPS 18278 b
1 those offered to similar projects participating in
2 other categories. Capital advanced prior to
3 energization shall serve to reduce the ratable
4 payments made after energization under items (ii) and
5 (iii) of subparagraph (L) or payments made for each
6 renewable energy credit delivery under item (iv) of
7 subparagraph (L).
8 For projects developed under this item (vi), the
9 Agency shall take steps to encourage higher portions
10 of contract value to be provided to equity eligible
11 contractors and to support equity eligible persons who
12 participate in this Program and who exercise control
13 and actively manage their businesses and their
14 businesses' contractual projects. These steps may
15 include, but are not limited to, differentiated REC
16 prices, exceptions or exemptions, and other mechanisms
17 and requirements for nonnominal contract value to be
18 provided to equity eligible contractors and equity
19 eligible persons as a prerequisite to Program
20 participation. Any steps taken shall aim to encourage
21 and grow the meaningful participation of equity
22 eligible contractors in this State's clean energy
23 economy. All entities participating under this item
24 (vi) shall comply with the minimum equity standard set
25 forth under Section 1-75.
26 (vii) The remaining capacity shall be allocated by
HB1700 Enrolled - 352 - LRB104 08228 SPS 18278 b
1 the Agency in order to respond to market demand. The
2 Agency shall allocate any discretionary capacity prior
3 to the beginning of each delivery year.
4 (viii) The Agency, through its long-term renewable
5 resources procurement plan, may implement solutions to
6 maintain stable and consistent REC offerings allocated
7 to systems described in item (i) of this subparagraph
8 (K) to avoid gaps in availability during a delivery
9 year, including, but not limited to, creating a
10 floating block of REC capacity in a given delivery
11 year.
12 To the extent there is uncontracted capacity from any
13 block in any of categories (i) through (vi) at the end of a
14 delivery year, the Agency shall redistribute that capacity
15 to one or more other categories giving priority to
16 categories with projects on a waitlist. The redistributed
17 capacity shall be added to the annual capacity in the
18 subsequent delivery year, and the price for renewable
19 energy credits shall be the price for the new delivery
20 year. Redistributed capacity shall not be considered
21 redistributed when determining whether the goals in this
22 subsection (K) have been met.
23 Notwithstanding anything to the contrary, as the
24 Agency increases the capacity in item (vi) to 40% over
25 time, the Agency may reduce the capacity of items (i)
26 through (v) proportionate to the capacity of the
HB1700 Enrolled - 353 - LRB104 08228 SPS 18278 b
1 categories of projects in item (vi), to achieve a balance
2 of project types.
3 The Adjustable Block program shall be designed to
4 ensure that renewable energy credits are procured from
5 projects in diverse locations and are not concentrated in
6 a few regional areas.
7 (L) Notwithstanding provisions for advancing capital
8 prior to project energization found in item (vi) of
9 subparagraph (K), the procurement of photovoltaic
10 renewable energy credits under items (i) through (vi) of
11 subparagraph (K) of this paragraph (1) shall otherwise be
12 subject to the following contract and payment terms:
13 (i) (Blank).
14 (ii) Unless otherwise provided for in the Agency's
15 approved long-term plan, for those renewable energy
16 credits that qualify and are procured under item (i)
17 of subparagraph (K) of this paragraph (1), and any
18 similar category projects that are procured under item
19 (vi) of subparagraph (K) of this paragraph (1) that
20 qualify and are procured under item (vi), the contract
21 length shall be 15 years. Beginning on the effective
22 date of this amendatory Act of the 104th General
23 Assembly, and including the remainder of program year
24 2026-2027, 50% of the renewable energy credit delivery
25 contract value, based on the estimated generation
26 during the first 15 years of operation, shall be paid
HB1700 Enrolled - 354 - LRB104 08228 SPS 18278 b
1 by the contracting utilities at the time that the
2 facility producing the renewable energy credits is
3 interconnected at the distribution system level of the
4 utility and verified as energized and compliant by the
5 Program Administrator. The remaining portion of the
6 renewable energy credit delivery contract value shall
7 be paid ratably over the subsequent 6-year period.
8 Relative to a contract structure under which the full
9 renewable energy credit delivery contract value shall
10 be paid in full at the time of interconnection and
11 verification of energization, the Agency shall
12 consider the impact of deferred payments across the
13 subsequent payment period when establishing renewable
14 energy credit prices. The electric utility shall
15 receive and retire all renewable energy credits
16 generated by the project for the first 15 years of
17 operation. Renewable energy credits generated by the
18 project thereafter shall not be transferred under the
19 renewable energy credit delivery contract with the
20 counterparty electric utility.
21 (iii) Unless otherwise provided for in the
22 Agency's approved long-term plan, for those renewable
23 energy credits that qualify and are procured under
24 item (ii) and (v) of subparagraph (K) of this
25 paragraph (1) and any like projects that qualify and
26 are procured under items (iv) and (vi), the contract
HB1700 Enrolled - 355 - LRB104 08228 SPS 18278 b
1 length shall be 15 years. 15% of the renewable energy
2 credit delivery contract value, based on the estimated
3 generation during the first 15 years of operation,
4 shall be paid by the contracting utilities at the time
5 that the facility producing the renewable energy
6 credits is interconnected at the distribution system
7 level of the utility and verified as energized and
8 compliant by the Program Administrator. The remaining
9 portion shall be paid ratably over the subsequent
10 6-year period. The electric utility shall receive and
11 retire all renewable energy credits generated by the
12 project for the first 15 years of operation. Renewable
13 energy credits generated by the project thereafter
14 shall not be transferred under the renewable energy
15 credit delivery contract with the counterparty
16 electric utility.
17 (iv) Unless otherwise provided for in the Agency's
18 approved long-term plan, for those renewable energy
19 credits that qualify and are procured under item (iii)
20 of subparagraph (K) of this paragraph (1), and any
21 like projects that qualify and are procured under
22 items (iv) and (vi), the renewable energy credit
23 delivery contract length shall be 20 years and shall
24 be paid over the delivery term, not to exceed during
25 each delivery year the contract price multiplied by
26 the estimated annual renewable energy credit
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1 generation amount. If generation of renewable energy
2 credits during a delivery year exceeds the estimated
3 annual generation amount, the excess renewable energy
4 credits shall be carried forward to future delivery
5 years and shall not expire during the delivery term.
6 If generation of renewable energy credits during a
7 delivery year, including carried forward excess
8 renewable energy credits, if any, is less than the
9 estimated annual generation amount, payments during
10 such delivery year will not exceed the quantity
11 generated plus the quantity carried forward multiplied
12 by the contract price. The electric utility shall
13 receive all renewable energy credits generated by the
14 project during the first 20 years of operation and
15 retire all renewable energy credits paid for under
16 this item (iv) and return at the end of the delivery
17 term all renewable energy credits that were not paid
18 for. Renewable energy credits generated by the project
19 thereafter shall not be transferred under the
20 renewable energy credit delivery contract with the
21 counterparty electric utility. Notwithstanding the
22 preceding, for those projects participating under item
23 (iii) of subparagraph (K), the contract price for a
24 delivery year shall be based on subscription levels as
25 measured on the higher of the first business day of the
26 delivery year or the first business day 6 months after
HB1700 Enrolled - 357 - LRB104 08228 SPS 18278 b
1 the first business day of the delivery year.
2 Subscription of 90% of nameplate capacity or greater
3 shall be deemed to be fully subscribed for the
4 purposes of this item (iv). For projects receiving a
5 20-year delivery contract, REC prices shall be
6 adjusted downward for consistency with the incentive
7 levels previously determined to be necessary to
8 support projects under 15-year delivery contracts,
9 taking into consideration any additional new
10 requirements placed on the projects, including, but
11 not limited to, labor standards.
12 (v) Each contract shall include provisions to
13 ensure the delivery of the estimated quantity of
14 renewable energy credits and ongoing collateral
15 requirements and other provisions deemed appropriate
16 by the Agency.
17 (vi) The utility shall be the counterparty to the
18 contracts executed under this subparagraph (L) that
19 are approved by the Commission under the process
20 described in Section 16-111.5 of the Public Utilities
21 Act. No contract shall be executed for an amount that
22 is less than one renewable energy credit per year.
23 (vii) If, at any time, approved applications for
24 the Adjustable Block program exceed funds collected by
25 the electric utility or would cause the Agency to
26 exceed the limitation described in subparagraph (E) of
HB1700 Enrolled - 358 - LRB104 08228 SPS 18278 b
1 this paragraph (1) on the amount of renewable energy
2 resources that may be procured, then the Agency may
3 consider future uncommitted funds to be reserved for
4 these contracts on a first-come, first-served basis.
5 (viii) Nothing in this Section shall require the
6 utility to advance any payment or pay any amounts that
7 exceed the actual amount of revenues anticipated to be
8 collected by the utility under paragraph (6) of this
9 subsection (c) and subsection (k) of Section 16-108 of
10 the Public Utilities Act inclusive of eligible funds
11 collected in prior years and alternative compliance
12 payments for use by the utility.
13 (ix) Notwithstanding other requirements of this
14 subparagraph (L), no modification shall be required to
15 Adjustable Block program contracts if they were
16 already executed prior to the establishment, approval,
17 and implementation of new contract forms as a result
18 of this amendatory Act of the 102nd General Assembly.
19 (x) Contracts may be assignable, but only to
20 entities first deemed by the Agency to have met
21 program terms and requirements applicable to direct
22 program participation. In developing contracts for the
23 delivery of renewable energy credits, the Agency shall
24 be permitted to establish fees applicable to each
25 contract assignment.
26 (M) The Agency shall be authorized to retain one or
HB1700 Enrolled - 359 - LRB104 08228 SPS 18278 b
1 more experts or expert consulting firms to develop,
2 administer, implement, operate, and evaluate the
3 Adjustable Block program described in subparagraph (K) of
4 this paragraph (1), as well as the Geothermal Homes and
5 Businesses Program described in subparagraph (S) of this
6 paragraph (1), and the Agency shall retain the consultant
7 or consultants in the same manner, to the extent
8 practicable, as the Agency retains others to administer
9 provisions of this Act, including, but not limited to, the
10 procurement administrator. The selection of experts and
11 expert consulting firms and the procurement process
12 described in this subparagraph (M) are exempt from the
13 requirements of Section 20-10 of the Illinois Procurement
14 Code, under Section 20-10 of that Code. The Agency shall
15 strive to minimize administrative expenses in the
16 implementation of the Adjustable Block program.
17 The Program Administrator may charge application fees
18 to participating firms to cover the cost of program
19 administration. Any application fee amounts shall
20 initially be determined through the long-term renewable
21 resources procurement plan, and modifications to any
22 application fee that deviate more than 25% from the
23 Commission's approved value must be approved by the
24 Commission as a long-term plan revision under Section
25 16-111.5 of the Public Utilities Act. The Agency shall
26 consider stakeholder feedback when making adjustments to
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1 application fees and shall notify stakeholders in advance
2 of any planned changes.
3 In addition to covering the costs of program
4 administration, the Agency, in conjunction with its
5 Program Administrator, may also use the proceeds of such
6 fees charged to participating firms to support public
7 education and ongoing regional and national coordination
8 with nonprofit organizations, public bodies, and others
9 engaged in the implementation of renewable energy
10 incentive programs or similar initiatives. This work may
11 include developing papers and reports, hosting regional
12 and national conferences, and other work deemed necessary
13 by the Agency to position the State of Illinois as a
14 national leader in renewable energy incentive program
15 development and administration.
16 The Agency and its consultant or consultants shall
17 monitor block activity, share program activity with
18 stakeholders and conduct quarterly meetings to discuss
19 program activity and market conditions. If necessary, the
20 Agency may make prospective administrative adjustments to
21 the Adjustable Block program and the Geothermal Homes and
22 Businesses Program design, such as making adjustments to
23 purchase prices as necessary to achieve the goals of this
24 subsection (c). Program modifications to any block price
25 that do not deviate from the Commission's approved value
26 by more than 10% shall take effect immediately and are not
HB1700 Enrolled - 361 - LRB104 08228 SPS 18278 b
1 subject to Commission review and approval. Program
2 modifications to any block price that deviate more than
3 10% from the Commission's approved value must be approved
4 by the Commission as a long-term plan amendment under
5 Section 16-111.5 of the Public Utilities Act. The Agency
6 shall consider stakeholder feedback when making
7 adjustments to the Adjustable Block and the Geothermal
8 Homes and Businesses Program design and shall notify
9 stakeholders in advance of any planned changes.
10 The Agency and its program administrators for the
11 Adjustable Block program, the Illinois Solar for All
12 Program, and the Geothermal Homes and Businesses Program
13 consistent with the requirements of this subsection (c)
14 and subsection (b) of Section 1-56 of this Act, shall
15 propose the Adjustable Block program terms, conditions,
16 and requirements, including the prices to be paid for
17 renewable energy credits, where applicable, and
18 requirements applicable to participating entities and
19 project applications, through the development, review, and
20 approval of the Agency's long-term renewable resources
21 procurement plan described in this subsection (c) and
22 paragraph (5) of subsection (b) of Section 16-111.5 of the
23 Public Utilities Act. Terms, conditions, and requirements
24 for program participation shall include the following:
25 (i) The Agency shall establish a registration
26 process for entities seeking to qualify for
HB1700 Enrolled - 362 - LRB104 08228 SPS 18278 b
1 program-administered incentive funding and establish
2 baseline qualifications for vendor approval. The
3 Agency shall also establish program requirements and
4 minimum contract terms for vendors and others involved
5 in the marketing, sale, installation, and financing of
6 distributed generation systems and community solar
7 subscriptions to prevent misleading marketing and
8 abusive practices and to otherwise protect customers.
9 The Agency must maintain a list of approved entities
10 on each program's website, and may revoke a vendor's
11 ability to receive program-administered incentive
12 funding status upon a determination that the vendor
13 failed to comply with contract terms, the law, or
14 other program requirements.
15 (ii) The Agency shall establish program
16 requirements and minimum contract terms to ensure
17 projects are properly installed and produce their
18 expected amounts of energy. Program requirements may
19 include on-site inspections and photo documentation of
20 projects under construction. The Agency may require
21 repairs, alterations, or additions to remedy any
22 material deficiencies discovered. Vendors who have a
23 disproportionately high number of deficient systems
24 may lose their eligibility to continue to receive
25 State-administered incentive funding through Agency
26 programs and procurements.
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1 (iii) To discourage deceptive marketing or other
2 bad faith business practices, the Agency may require
3 direct program participants, including agents
4 operating on their behalf, to provide standardized
5 disclosures to a customer prior to that customer's
6 execution of a contract for the development of a
7 distributed generation system, a subscription to a
8 community solar project, or the development of a
9 geothermal heating and cooling system.
10 (iv) The Agency shall establish one or multiple
11 Consumer Complaints Centers to accept complaints
12 regarding businesses that participate in, or otherwise
13 benefit from, State-administered incentive funding
14 through Agency-administered programs. The Agency shall
15 maintain a public database of complaints with any
16 confidential or particularly sensitive information
17 redacted from public entries.
18 (v) Through a filing in the proceeding for the
19 approval of its long-term renewable energy resources
20 procurement plan, the Agency shall provide an annual
21 written report to the Illinois Commerce Commission
22 documenting the frequency and nature of complaints and
23 any enforcement actions taken in response to those
24 complaints.
25 (vi) The Agency shall schedule regular meetings
26 with representatives of the Office of the Attorney
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1 General, the Illinois Commerce Commission, consumer
2 protection groups, and other interested stakeholders
3 to share relevant information about consumer
4 protection, project compliance, and complaints
5 received.
6 (vii) To the extent that complaints received
7 implicate the jurisdiction of the Office of the
8 Attorney General, the Illinois Commerce Commission, or
9 local, State, or federal law enforcement, the Agency
10 shall also refer complaints to those entities as
11 appropriate.
12 (viii) The Agency may, at its discretion,
13 establish a registration process for entities, or a
14 subset of entities, that provide financing for
15 consumers for the purchase of distributed renewable
16 generation devices. The Agency may establish baseline
17 qualifications for financing entity approval,
18 including defining the circumstances under which
19 financing entities may be subject to registration. The
20 Agency may also establish program requirements for
21 entities that provide financing for the purchase of
22 distributed renewable generation devices, which may
23 include marketing and disclosure requirements, other
24 requirements as further defined by the Agency through
25 its long-term plan, and any consumer protection
26 requirements developed or modified thereto. If the
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1 Agency establishes a registration process for
2 financing entities, the Agency may revoke a financing
3 entity's approval in a program upon a determination
4 that the financing entity failed to comply with
5 contract terms, the law, or other program
6 requirements. The Agency may also establish program
7 requirements that prohibit distributed renewable
8 generation devices intending to apply for
9 program-administered incentive funding from receiving
10 program funding if the consumer's purchase of the
11 device was financed by an entity whose approval status
12 in the program has been revoked. These registration
13 requirements may apply to entities that finance
14 projects intended to apply for program-administered
15 incentive funding even if those entities do not
16 receive any portion of the program-administered
17 incentive funding.
18 (ix) The Agency, at its discretion, may require
19 that vendors, as part of the application and annual
20 recertification process, present the Agency or its
21 designee with a security bond equal to an amount
22 determined to be reasonable by the Agency. The bond
23 shall be for the benefit of customers harmed by the
24 vendor's violation of Agency requirements or other
25 applicable laws or regulations. The Agency may
26 determine that it is reasonable to have no bond
HB1700 Enrolled - 366 - LRB104 08228 SPS 18278 b
1 requirement for some categories of vendors or enhanced
2 bond requirements for vendors that the Agency has
3 deemed to pose more acute risks.
4 (x) For distributed renewable generation devices,
5 the Agency may, in its discretion, establish
6 provisions that restrict, prohibit, or create
7 additional requirements for distributed renewable
8 generation device sales or financing offers through
9 which the customer is promised the pass-through of a
10 portion or all of the payments received by the
11 approved vendor for the delivery of renewable energy
12 credits only after the receipt of such payment by the
13 approved vendor. The requirements may include the use
14 of an escrow process developed by the Agency through
15 which renewable energy credit payments are made to an
16 escrow agent who then disburses the promised amount to
17 the customer and the remainder to the vendor. The
18 requirements in this item (x) shall in no way prohibit
19 the upfront discounting of the purchase price, lease
20 payment, or power purchase agreement rate based on the
21 anticipated receipt of renewable energy credit
22 contract payments by the approved vendor.
23 (xi) To the extent that distributed renewable
24 generation device sales or financing offers through
25 which the customer is promised the pass-through of a
26 portion or all of the payments received by the vendor
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1 for the delivery of renewable energy credits after the
2 receipt of such payment by the vendor are permitted,
3 the following requirements may be implemented, at the
4 Agency's discretion, in a time and manner determined
5 by the Agency:
6 (I) the vendor shall submit proof of customer
7 payments to the Agency as the Agency deems
8 necessary; and
9 (II) the vendor shall represent and warrant on
10 a form developed by the Agency that the vendor is
11 not insolvent, has not voluntarily filed for
12 bankruptcy, and has not been subject to or
13 threatened with involuntary insolvency.
14 (xii) To ensure that customers receive full and
15 uninterrupted benefits and services promised by
16 vendors, the Agency may propose additional solutions
17 through its long-term renewable resources procurement
18 plan described in this subsection (c) and paragraph
19 (5) of subsection (b) of Section 16-111.5 of the
20 Public Utilities Act. The solutions may allow for
21 collections made pursuant to subsection (k) of Section
22 16-108 of the Public Utilities Act to support the
23 programs and procurements outlined in paragraph (1) of
24 subsection (c) of this Section to be leveraged to (1)
25 ensure that a vendor's promised payments are received
26 by customers, (2) incentivize vendors to establish
HB1700 Enrolled - 368 - LRB104 08228 SPS 18278 b
1 service agreements with customers whose original
2 vendor has become nonresponsive, (3) ensure that
3 customers receive restitution for financial harm
4 proven to be caused by a program vendor or its
5 designee, or (4) otherwise ensure that customers do
6 not suffer loss or harm through activities supported
7 by the Adjustable Block program and the Illinois Solar
8 for All Program.
9 (N) The Agency shall establish the terms, conditions,
10 and program requirements for photovoltaic community
11 renewable generation projects with a goal to expand access
12 to a broader group of energy consumers, to ensure robust
13 participation opportunities for residential and small
14 commercial customers and those who cannot install
15 renewable energy on their own properties. Subject to
16 reasonable limitations, any plan approved by the
17 Commission shall allow subscriptions to community
18 renewable generation projects to be portable and
19 transferable. For purposes of this subparagraph (N),
20 "portable" means that subscriptions may be retained by the
21 subscriber even if the subscriber relocates or changes its
22 address within the same utility service territory; and
23 "transferable" means that a subscriber may assign or sell
24 subscriptions to another person within the same utility
25 service territory.
26 Through the development of its long-term renewable
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1 resources procurement plan, the Agency may consider
2 whether community renewable generation projects utilizing
3 technologies other than photovoltaics should be supported
4 through State-administered incentive funding, and may
5 issue requests for information to gauge market demand.
6 Electric utilities shall provide a monetary credit to
7 a subscriber's subsequent bill for service for the
8 proportional output of a community renewable generation
9 project attributable to that subscriber as specified in
10 Section 16-107.5 of the Public Utilities Act.
11 The Agency shall purchase renewable energy credits
12 from subscribed shares of photovoltaic community renewable
13 generation projects through the Adjustable Block program
14 described in subparagraph (K) of this paragraph (1) or
15 through the Illinois Solar for All Program described in
16 Section 1-56 of this Act. The electric utility shall
17 purchase any unsubscribed energy from community renewable
18 generation projects that are Qualifying Facilities ("QF")
19 under the electric utility's tariff for purchasing the
20 output from QFs under Public Utilities Regulatory Policies
21 Act of 1978.
22 The owners of and any subscribers to a community
23 renewable generation project shall not be considered
24 public utilities or alternative retail electricity
25 suppliers under the Public Utilities Act solely as a
26 result of their interest in or subscription to a community
HB1700 Enrolled - 370 - LRB104 08228 SPS 18278 b
1 renewable generation project and shall not be required to
2 become an alternative retail electric supplier by
3 participating in a community renewable generation project
4 with a public utility.
5 (O) For the delivery year beginning June 1, 2018, the
6 long-term renewable resources procurement plan required by
7 this subsection (c) shall provide for the Agency to
8 procure contracts to continue offering the Illinois Solar
9 for All Program described in subsection (b) of Section
10 1-56 of this Act, and the contracts approved by the
11 Commission shall be executed by the utilities that are
12 subject to this subsection (c). The long-term renewable
13 resources procurement plan shall allocate up to
14 $50,000,000 per delivery year to fund the programs, and
15 the plan shall determine the amount of funding to be
16 apportioned to the programs identified in subsection (b)
17 of Section 1-56 of this Act; provided that for the
18 delivery years beginning June 1, 2021, June 1, 2022, and
19 June 1, 2023, the long-term renewable resources
20 procurement plan may average the annual budgets over a
21 3-year period to account for program ramp-up. For the
22 delivery years beginning June 1, 2021, June 1, 2024, June
23 1, 2027, and June 1, 2030 and additional $10,000,000 shall
24 be provided to the Department of Commerce and Economic
25 Opportunity to implement the workforce development
26 programs and reporting as outlined in Section 16-108.12 of
HB1700 Enrolled - 371 - LRB104 08228 SPS 18278 b
1 the Public Utilities Act. In making the determinations
2 required under this subparagraph (O), the Commission shall
3 consider the experience and performance under the programs
4 and any evaluation reports. The Commission shall also
5 provide for an independent evaluation of those programs on
6 a periodic basis that are funded under this subparagraph
7 (O).
8 (P) All programs and procurements under this
9 subsection (c) shall be designed to encourage
10 participating projects to use a diverse and equitable
11 workforce and a diverse set of contractors, including
12 minority-owned businesses, disadvantaged businesses,
13 trade unions, graduates of any workforce training programs
14 administered under this Act, and small businesses.
15 The Agency shall develop a method to optimize
16 procurement of renewable energy credits from proposed
17 utility-scale projects that are located in communities
18 eligible to receive Energy Transition Community Grants
19 pursuant to Section 10-20 of the Energy Community
20 Reinvestment Act. If this requirement conflicts with other
21 provisions of law or the Agency determines that full
22 compliance with the requirements of this subparagraph (P)
23 would be unreasonably costly or administratively
24 impractical, the Agency is to propose alternative
25 approaches to achieve development of renewable energy
26 resources in communities eligible to receive Energy
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1 Transition Community Grants pursuant to Section 10-20 of
2 the Energy Community Reinvestment Act or seek an exemption
3 from this requirement from the Commission.
4 (Q) Each facility listed in subitems (i) through (x)
5 (ix) of item (1) of this subparagraph (Q) for which a
6 renewable energy credit delivery contract is signed after
7 the effective date of this amendatory Act of the 102nd
8 General Assembly is subject to the following requirements
9 through the Agency's long-term renewable resources
10 procurement plan:
11 (1) Each facility shall be subject to the
12 prevailing wage requirements included in the
13 Prevailing Wage Act. The Agency shall require
14 verification that all construction performed on the
15 facility by the renewable energy credit delivery
16 contract holder, its contractors, or its
17 subcontractors relating to construction of the
18 facility is performed by construction employees
19 receiving an amount for that work equal to or greater
20 than the general prevailing rate, as that term is
21 defined in Section 2 of the Prevailing Wage Act. For
22 purposes of this item (1), "house of worship" means
23 property that is both (1) used exclusively by a
24 religious society or body of persons as a place for
25 religious exercise or religious worship and (2)
26 recognized as exempt from taxation pursuant to Section
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1 15-40 of the Property Tax Code. This item (1) shall
2 apply to any of the following:
3 (i) all new utility-scale wind projects;
4 (ii) all new utility-scale photovoltaic
5 projects and repowered wind projects;
6 (iii) all new brownfield photovoltaic
7 projects;
8 (iv) all new photovoltaic community renewable
9 energy facilities that qualify for item (iii) of
10 subparagraph (K) of this paragraph (1);
11 (v) all new community driven community
12 photovoltaic projects that qualify for item (v) of
13 subparagraph (K) of this paragraph (1);
14 (vi) all new photovoltaic projects on public
15 school land that qualify for item (iv) of
16 subparagraph (K) of this paragraph (1);
17 (vii) all new photovoltaic distributed
18 renewable energy generation devices that (1)
19 qualify for item (i) of subparagraph (K) of this
20 paragraph (1); (2) are not projects that serve
21 single-family or multi-family residential
22 buildings; and (3) are not houses of worship where
23 the aggregate capacity including colocated
24 projects would not exceed 100 kilowatts;
25 (viii) all new photovoltaic distributed
26 renewable energy generation devices that (1)
HB1700 Enrolled - 374 - LRB104 08228 SPS 18278 b
1 qualify for item (ii) of subparagraph (K) of this
2 paragraph (1); (2) are not projects that serve
3 single-family or multi-family residential
4 buildings; and (3) are not houses of worship where
5 the aggregate capacity including colocated
6 projects would not exceed 100 kilowatts;
7 (ix) all new, modernized, or retooled
8 hydropower facilities;
9 (x) all new geothermal heating and cooling
10 systems awarded through the Geothermal Homes and
11 Businesses Program under subparagraph (S) of this
12 paragraph (1) that do not serve (1) single-family
13 residential buildings, (2) multi-family
14 residential buildings with aggregate geothermal
15 system tonnage, including colocated projects, of
16 no more than 14 29 tons, or (3) houses of worship
17 with aggregate geothermal system tonnage,
18 including colocated projects, of no more than 29
19 tons.
20 (2) Renewable energy credits procured from new
21 utility-scale wind projects, new utility-scale solar
22 projects, new brownfield solar projects, repowered
23 wind projects, and retooled hydropower facilities
24 pursuant to Agency procurement events occurring after
25 the effective date of this amendatory Act of the 102nd
26 General Assembly and community-driven community solar
HB1700 Enrolled - 375 - LRB104 08228 SPS 18278 b
1 projects or photovoltaic community renewable
2 generation projects where the aggregate capacity,
3 including colocated projects, exceeds 3,000 kilowatts
4 pursuant to a renewable energy credit delivery
5 contract approved by the Illinois Commerce Commission
6 under the Adjustable Block Program after the effective
7 date of this amendatory Act of the 104th General
8 Assembly must be from facilities built by general
9 contractors that must enter into a project labor
10 agreement, as defined by this Act, prior to
11 construction. Community-driven community solar
12 projects and photovoltaic Photovoltaic community
13 renewable generation projects on a program waitlist as
14 of the effective date of this amendatory Act of the
15 104th General Assembly awarded capacity for the
16 program year commencing June 1, 2026 or any program
17 year thereafter shall not be exempt from the project
18 labor agreement requirements of this item (2). The
19 project labor agreement shall be filed with the
20 Director in accordance with procedures established by
21 the Agency through its long-term renewable resources
22 procurement plan. Any information submitted to the
23 Agency in this item (2) shall be considered
24 commercially sensitive information. At a minimum, the
25 project labor agreement must provide the names,
26 addresses, and occupations of the owner of the plant
HB1700 Enrolled - 376 - LRB104 08228 SPS 18278 b
1 and the individuals representing the labor
2 organization employees participating in the project
3 labor agreement consistent with the Project Labor
4 Agreements Act. The agreement must also specify the
5 terms and conditions as defined by this Act.
6 (2.5) Energy storage credits procured from battery
7 storage projects pursuant to Agency procurement events
8 and additional energy storage resources procured in
9 accordance with subparagraph (B) of paragraph (3) of
10 subsection (d-20) of this Section pursuant to Agency
11 procurement events occurring after the effective date
12 of this amendatory Act of the 104th General Assembly
13 must be from facilities built by general contractors
14 that must enter into a project labor agreement prior
15 to construction. The project labor agreement shall be
16 filed with the Director in accordance with procedures
17 established by the Agency through its long-term
18 renewable resources procurement plan. Any information
19 submitted to the Agency pursuant to this item (2.5)
20 shall be considered commercially sensitive
21 information. At a minimum, the project labor agreement
22 must provide the names, addresses, and occupations of
23 the owner of the plant and the individuals
24 representing the labor organization employees
25 participating in the project labor agreement
26 consistent with the Project Labor Agreements Act. The
HB1700 Enrolled - 377 - LRB104 08228 SPS 18278 b
1 agreement must also specify the terms and conditions,
2 as defined by this Act.
3 (3) It is the intent of this Section to ensure that
4 economic development occurs across Illinois
5 communities, that emerging businesses may grow, and
6 that there is improved access to the clean energy
7 economy by persons who have greater economic burdens
8 to success. The Agency shall take into consideration
9 the unique cost of compliance of this subparagraph (Q)
10 that might be borne by equity eligible contractors,
11 shall include such costs when determining the price of
12 renewable energy credits in the Adjustable Block
13 program and the Geothermal Homes and Businesses
14 Program, and shall take such costs into consideration
15 in a nondiscriminatory manner when comparing bids for
16 competitive procurements. The Agency shall consider
17 costs associated with compliance whether in the
18 development, financing, or construction of projects.
19 The Agency shall periodically review the assumptions
20 in these costs and may adjust prices, in compliance
21 with subparagraph (M) of this paragraph (1).
22 (R) In its long-term renewable resources procurement
23 plan, the Agency shall establish a self-direct renewable
24 portfolio standard compliance program for eligible
25 self-direct customers that purchase renewable energy
26 credits from utility-scale wind and solar projects through
HB1700 Enrolled - 378 - LRB104 08228 SPS 18278 b
1 long-term agreements for purchase of renewable energy
2 credits as described in this Section. Such long-term
3 agreements may include the purchase of energy or other
4 products on a physical or financial basis and may involve
5 an alternative retail electric supplier as defined in
6 Section 16-102 of the Public Utilities Act. This program
7 shall take effect in the delivery year commencing June 1,
8 2023.
9 (1) For the purposes of this subparagraph:
10 "Eligible self-direct customer" means any retail
11 customers of an electric utility that serves 3,000,000
12 or more retail customers in the State and whose total
13 highest 30-minute demand was more than 10,000
14 kilowatts, or any retail customers of an electric
15 utility that serves less than 3,000,000 retail
16 customers but more than 500,000 retail customers in
17 the State and whose total highest 15-minute demand was
18 more than 10,000 kilowatts.
19 "Retail customer" has the meaning set forth in
20 Section 16-102 of the Public Utilities Act and
21 multiple retail customer accounts under the same
22 corporate parent may aggregate their account demands
23 to meet the 10,000 kilowatt threshold. The criteria
24 for determining whether this subparagraph is
25 applicable to a retail customer shall be based on the
26 12 consecutive billing periods prior to the start of
HB1700 Enrolled - 379 - LRB104 08228 SPS 18278 b
1 the year in which the application is filed.
2 (2) For renewable energy credits to count toward
3 the self-direct renewable portfolio standard
4 compliance program, they must:
5 (i) qualify as renewable energy credits as
6 defined in Section 1-10 of this Act;
7 (ii) be sourced from one or more renewable
8 energy generating facilities that comply with the
9 geographic requirements as set forth in
10 subparagraph (I) of paragraph (1) of subsection
11 (c) as interpreted through the Agency's long-term
12 renewable resources procurement plan, or, where
13 applicable, the geographic requirements that
14 governed utility-scale renewable energy credits at
15 the time the eligible self-direct customer entered
16 into the applicable renewable energy credit
17 purchase agreement;
18 (iii) be procured through long-term contracts
19 with term lengths of at least 10 years either
20 directly with the renewable energy generating
21 facility or through a bundled power purchase
22 agreement, a virtual power purchase agreement, an
23 agreement between the renewable generating
24 facility, an alternative retail electric supplier,
25 and the customer, or such other structure as is
26 permissible under this subparagraph (R);
HB1700 Enrolled - 380 - LRB104 08228 SPS 18278 b
1 (iv) be equivalent in volume to at least 40%
2 of the eligible self-direct customer's usage,
3 determined annually by the eligible self-direct
4 customer's usage during the previous delivery
5 year, measured to the nearest megawatt-hour;
6 (v) be retired by or on behalf of the large
7 energy customer;
8 (vi) be sourced from new utility-scale wind
9 projects or new utility-scale solar projects; and
10 (vii) if the contracts for renewable energy
11 credits are entered into after the effective date
12 of this amendatory Act of the 102nd General
13 Assembly, the new utility-scale wind projects or
14 new utility-scale solar projects must comply with
15 the requirements established in subparagraphs (P)
16 and (Q) of paragraph (1) of this subsection (c)
17 and subsection (c-10).
18 (3) The self-direct renewable portfolio standard
19 compliance program shall be designed to allow eligible
20 self-direct customers to procure new renewable energy
21 credits from new utility-scale wind projects or new
22 utility-scale photovoltaic projects. The Agency shall
23 annually determine the amount of utility-scale
24 renewable energy credits it will include each year
25 from the self-direct renewable portfolio standard
26 compliance program, subject to receiving qualifying
HB1700 Enrolled - 381 - LRB104 08228 SPS 18278 b
1 applications. In making this determination, the Agency
2 shall evaluate publicly available analyses and studies
3 of the potential market size for utility-scale
4 renewable energy long-term purchase agreements by
5 commercial and industrial energy customers and make
6 that report publicly available. If demand for
7 participation in the self-direct renewable portfolio
8 standard compliance program exceeds availability, the
9 Agency shall ensure participation is evenly split
10 between commercial and industrial users to the extent
11 there is sufficient demand from both customer classes.
12 Each renewable energy credit procured pursuant to this
13 subparagraph (R) by a self-direct customer shall
14 reduce the total volume of renewable energy credits
15 the Agency is otherwise required to procure from new
16 utility-scale projects pursuant to subparagraph (C) of
17 paragraph (1) of this subsection (c) on behalf of
18 contracting utilities where the eligible self-direct
19 customer is located. The self-direct customer shall
20 file an annual compliance report with the Agency
21 pursuant to terms established by the Agency through
22 its long-term renewable resources procurement plan to
23 be eligible for participation in this program.
24 Customers must provide the Agency with their most
25 recent electricity billing statements or other
26 information deemed necessary by the Agency to
HB1700 Enrolled - 382 - LRB104 08228 SPS 18278 b
1 demonstrate they are an eligible self-direct customer.
2 (4) The Commission shall approve a reduction in
3 the volumetric charges collected pursuant to Section
4 16-108 of the Public Utilities Act for approved
5 eligible self-direct customers equivalent to the
6 anticipated cost of renewable energy credit deliveries
7 under contracts for new utility-scale wind and new
8 utility-scale solar entered for each delivery year
9 after the large energy customer begins retiring
10 eligible new utility-scale renewable energy credits
11 for self-compliance. The self-direct credit amount
12 shall be determined annually and is equal to the
13 estimated portion of the cost authorized by
14 subparagraph (E) of paragraph (1) of this subsection
15 (c) that supported the annual procurement of
16 utility-scale renewable energy credits in the prior
17 delivery year using a methodology described in the
18 long-term renewable resources procurement plan,
19 expressed on a per kilowatthour basis, and does not
20 include (i) costs associated with any contracts
21 entered into before the delivery year in which the
22 customer files the initial compliance report to be
23 eligible for participation in the self-direct program,
24 and (ii) costs associated with procuring renewable
25 energy credits through existing and future contracts
26 through the Adjustable Block Program, subsection (c-5)
HB1700 Enrolled - 383 - LRB104 08228 SPS 18278 b
1 of this Section 1-75, and the Solar for All Program.
2 The Agency shall assist the Commission in determining
3 the current and future costs. The Agency must
4 determine the self-direct credit amount for new and
5 existing eligible self-direct customers and submit
6 this to the Commission in an annual compliance filing.
7 The Commission must approve the self-direct credit
8 amount by June 1, 2023 and June 1 of each delivery year
9 thereafter.
10 (5) Customers described in this subparagraph (R)
11 shall apply, on a form developed by the Agency, to the
12 Agency to be designated as a self-direct eligible
13 customer. Once the Agency determines that a
14 self-direct customer is eligible for participation in
15 the program, the self-direct customer will remain
16 eligible until the end of the term of the contract.
17 Thereafter, application may be made not less than 12
18 months before the filing date of the long-term
19 renewable resources procurement plan described in this
20 Act. At a minimum, such application shall contain the
21 following:
22 (i) the customer's certification that, at the
23 time of the customer's application, the customer
24 qualifies to be a self-direct eligible customer,
25 including documents demonstrating that
26 qualification;
HB1700 Enrolled - 384 - LRB104 08228 SPS 18278 b
1 (ii) the customer's certification that the
2 customer has entered into or will enter into by
3 the beginning of the applicable procurement year,
4 one or more bilateral contracts for new wind
5 projects or new photovoltaic projects, including
6 supporting documentation;
7 (iii) certification that the contract or
8 contracts for new renewable energy resources are
9 long-term contracts with term lengths of at least
10 10 years, including supporting documentation;
11 (iv) certification of the quantities of
12 renewable energy credits that the customer will
13 purchase each year under such contract or
14 contracts, including supporting documentation;
15 (v) proof that the contract is sufficient to
16 produce renewable energy credits to be equivalent
17 in volume to at least 40% of the large energy
18 customer's usage from the previous delivery year,
19 measured to the nearest megawatt-hour; and
20 (vi) certification that the customer intends
21 to maintain the contract for the duration of the
22 length of the contract.
23 (6) If a customer receives the self-direct credit
24 but fails to properly procure and retire renewable
25 energy credits as required under this subparagraph
26 (R), the Commission, on petition from the Agency and
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1 after notice and hearing, may direct such customer's
2 utility to recover the cost of the wrongfully received
3 self-direct credits plus interest through an adder to
4 charges assessed pursuant to Section 16-108 of the
5 Public Utilities Act. Self-direct customers who
6 knowingly fail to properly procure and retire
7 renewable energy credits and do not notify the Agency
8 are ineligible for continued participation in the
9 self-direct renewable portfolio standard compliance
10 program.
11 (S) Beginning with the long-term renewable resources
12 procurement plan covering program and procurement activity
13 for the delivery year beginning on June 1, 2028, any
14 long-term renewable resources procurement plan developed
15 by the Agency in accordance with subparagraph (A) of this
16 paragraph (1) shall include a Geothermal Homes and
17 Businesses Program for the procurement of geothermal
18 renewable energy credits from new geothermal heating and
19 cooling systems. The long-term renewable resources
20 procurement plan shall allocate up to $10,000,000 per
21 delivery year to fund the Program as described in this
22 subparagraph (S). The Program shall be designed to
23 stimulate the steady, predictable, and sustainable growth
24 of new geothermal heating and cooling system deployment in
25 this State and meet gaps in the marketplace. To this end,
26 the Geothermal Homes and Businesses Program shall provide
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1 a transparent annual schedule of prices and quantities to
2 enable the geothermal heating and cooling market to scale
3 up and renewable energy credit prices to adjust at a
4 predictable rate over time. The prices set by the
5 Geothermal Homes and Businesses Program may be reflected
6 as a set value or as the product of a formula.
7 (i) The Geothermal Homes and Businesses Program
8 shall allocate blocks of renewable energy credits as
9 follows:
10 (1) The Agency may create categories for the
11 Program based on structure features and use cases,
12 including categories based on the nature and size
13 of the Program's projects, customers, communities
14 in which a project is located, and other
15 attributes, defined at the discretion of the
16 Agency through its long-term plan.
17 (2) The Agency shall propose an initial single
18 annual block for each Program delivery year for
19 each category it creates through the delivery year
20 beginning on June 1, 2035. The Program shall
21 include the following for eligible projects for
22 each delivery year: (I) a block of geothermal
23 renewable energy credit volumes; (II) a price for
24 renewable energy credits from geothermal heating
25 and cooling systems within the identified block;
26 and (III) the terms and conditions for securing a
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1 spot on a waitlist once the block is fully
2 committed or reserved. The Agency may periodically
3 review its prior decisions establishing the amount
4 of geothermal renewable energy credit volumes in
5 each annual block and the purchase price for each
6 block and may propose, on an expedited basis,
7 changes to the previously set values, including,
8 but not limited to, redistributing the amounts and
9 the available funds as necessary and appropriate,
10 subject to Commission approval. The Agency may
11 define different block sizes, purchase prices, or
12 other distinct terms and conditions for projects
13 located in different utility service territories
14 if the Agency deems it necessary.
15 (3) The Agency may develop an intra-year and
16 year-to-year waitlist and block reservation policy
17 that balances market certainty, program
18 availability, and expedient project deployment.
19 (4) For the program year beginning on June 1,
20 2028, at least 33% of each annual block shall be
21 available to be reserved for systems that are
22 residential, as defined by the Agency. The Agency
23 shall endeavor to ensure at least 40% of each
24 annual block is available to be reserved by
25 systems located in Equity Investment Eligible
26 Communities. At least 10% of all annual blocks
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1 shall be available to be reserved by systems from
2 applicants that are equity eligible contractors,
3 and the Agency shall propose to increase the
4 percentage of systems from applicants that are
5 equity eligible contractors over time to 40% based
6 on factors that include, but are not limited to,
7 the number of equity eligible contractors and the
8 volume used under this clause (4) in previous
9 delivery years. For long-term renewable resources
10 procurement plans developed thereafter, the Agency
11 may propose adjustments to the minimum percentages
12 based on developer interest, market interest and
13 availability, and other factors.
14 (5) The Agency shall establish Program
15 eligibility requirements that ensure that systems
16 that enter the Program are sufficiently mature
17 enough to indicate a demonstrable path to
18 completion and other terms, conditions, and
19 requirements for the program, including vendor
20 registration and approval, sales and marketing
21 requirements, and other consumer protection
22 requirements as the Agency deems necessary.
23 (6) The Program shall be designed to ensure
24 that geothermal renewable energy credits are
25 procured from projects in diverse locations and
26 are not procured from projects that are
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1 concentrated in a few regional areas.
2 (7) The Agency, through its long-term
3 renewable resources procurement plan, may
4 implement solutions to maintain stable and
5 consistent REC offerings to avoid gaps in
6 availability during a delivery year, including,
7 but not limited to, creating a floating block of
8 REC capacity in a given delivery year.
9 (ii) Energy derived from a geothermal heating and
10 cooling system shall be eligible for inclusion in
11 meeting the requirements of the Program. Geothermal
12 renewable energy credits shall be expressed in
13 megawatt-hour units. To make this calculation, the
14 Agency (1) shall identify an appropriate formula
15 supported by a geothermal industry trade organization,
16 a national laboratory, or another data-backed and
17 verifiable methodology, (2) may propose adjustments to
18 any formulas for its proposed renewable energy credit
19 calculation methodology, and (3) may reflect
20 calculation methodologies already in use for other
21 State renewable portfolio standards, if applicable and
22 appropriate. The Agency shall determine the form and
23 manner in which the renewable energy credits are
24 verified and retired, in accordance with national best
25 practices.
26 Geothermal renewable energy credits retired by
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1 obligated utilities for compliance with the Program
2 are only valid for compliance if those geothermal
3 renewable energy credits have not been previously
4 retired by another entity that is not the obligated
5 utility on any tracking system, carbon registry, or
6 other accounting mechanism at any time. Additionally,
7 geothermal renewable energy credits retired by
8 obligated utilities for compliance with the Program
9 shall only be valid for compliance if those geothermal
10 renewable energy credits have not been used to
11 substantiate a public emissions or energy usage claim
12 by any other another entity that is not the obligated
13 utility, of any type and at any time, whether or not
14 the geothermal renewable energy credits were actually
15 retired on a tracking system, registry, or other
16 accounting mechanism at the time of the public
17 emissions-based claim. Geothermal renewable energy
18 credits generated for compliance with the Program
19 shall be valid only if retired once, and claimed once,
20 by the obligated utility.
21 In order to promote the competitive development of
22 geothermal heating and cooling systems in furtherance
23 of this State's interest in the health, safety, and
24 welfare of its residents, renewable energy credits
25 from geothermal heating and cooling systems shall not
26 be eligible for purchase and retirement under this Act
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1 if the credits are sourced from a geothermal heating
2 and cooling system for which costs are being recovered
3 on or after the effective date of this amendatory Act
4 of the 104th General Assembly through rates regulated
5 by this State or any other state.
6 (iii) The Agency shall establish Program
7 requirements and minimum contract terms to ensure that
8 projects are properly installed and that projects
9 operate to the level of expected benefits. The
10 contract terms shall include, but are not limited to,
11 the following:
12 (1) The capital that is not advanced shall be
13 disbursed upon a schedule determined by the
14 Agency, based on the total contracted fulfillment
15 over the delivery term, not to exceed, during each
16 delivery year, the contract price multiplied by
17 the estimated annual renewable energy credit
18 generation amount. Payment structures shall
19 include provisions that provide portions of the
20 renewable energy credit delivery contract value
21 upon energization, including no less than 40% of
22 the contract value for residential projects, based
23 on the estimated renewable energy credit
24 production during the contract term.
25 (2) For renewable energy credits that qualify
26 and are procured under the Program, the delivery
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1 contract length shall be 15 years.
2 (3) For contracts that are paid upon the
3 delivery of renewable energy credits, if
4 generation of renewable energy credits from
5 geothermal heating and cooling systems during a
6 delivery year exceeds the estimated annual
7 generation amount, the excess of such renewable
8 energy credits shall be carried forward to future
9 delivery years and shall not expire during the
10 delivery term. If the renewable energy credit
11 generation during a delivery year, including any
12 carried forward excess renewable energy credits,
13 is less than the estimated annual generation
14 amount, payments during the delivery year shall
15 not exceed the quantity generated plus the
16 quantity carried forward multiplied by the
17 contract price. The electric utility shall receive
18 all renewable energy credits generated by the
19 project during the first 15 years of operation,
20 and retire all renewable energy credits paid for
21 under this clause (3) and return at the end of the
22 delivery term all geothermal renewable energy
23 credits that were not paid for. Renewable energy
24 credits generated by the project thereafter shall
25 not be transferred under the renewable energy
26 credit delivery contract with the counterparty
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1 electric utility.
2 (4) For renewable energy contracts for any
3 type of community, shared, or similar geothermal
4 heating and cooling system that operates using a
5 subscription model and for which subscriptions are
6 a basis for contractual payments, subscription of
7 90% of total renewable energy credit volumes or
8 greater shall be deemed to be fully subscribed.
9 (5) Beginning with the long-term renewable
10 resources procurement plan covering the delivery
11 year beginning on June 1, 2030, the Agency may
12 propose a payment structure for Program contracts
13 upon a demonstration of qualification or need
14 under criteria established by the Agency that is
15 focused on supporting the small and emerging
16 businesses and the businesses that most acutely
17 face barriers to capital access. Successful
18 applicant firms shall have advanced capital
19 disbursed before renewable energy credits are
20 first generated. The maximum amount or percentage
21 of capital advanced shall be included in the
22 long-term renewable resources procurement plan,
23 and any amount actually advanced shall be designed
24 to overcome the barriers in access to capital that
25 are faced by an applicant through that applicant's
26 demonstration of need. The amount or percentage of
HB1700 Enrolled - 394 - LRB104 08228 SPS 18278 b
1 advanced capital may vary by year, or inter-year,
2 by structure category, block, and other factors as
3 deemed applicable by the Agency and by an
4 applicant's demonstration of need. Contracts
5 featuring capital advanced prior to system
6 operation shall feature provisions to ensure both
7 the successful development of applicant projects
8 and the delivery of renewable energy credits for
9 the full term of the contract, including ongoing
10 collateral requirements and other provisions
11 deemed necessary by the Agency. The percentage or
12 amount of capital advanced prior to system
13 operation shall not increase the overall contract
14 value.
15 (6) Each contract shall include provisions to
16 ensure the delivery of the estimated quantity of
17 geothermal renewable energy credits, including a
18 requirement of performance assurance in an amount
19 deemed appropriate by the Agency.
20 (7) An obligated utility shall be the
21 counterparty to the contracts executed under this
22 subparagraph (S) that are approved by the
23 Commission. No contract shall be executed for an
24 amount that is less than one geothermal renewable
25 energy credit per year.
26 (8) Nothing in this subparagraph (S) shall
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1 require the utility to advance any payment or pay
2 any amounts that exceed the actual amount of
3 revenues anticipated to be collected by the
4 utility inclusive of eligible funds collected in
5 prior years and alternative compliance payments
6 for use by the utility.
7 (9) Contracts may be assignable, but only to
8 entities first deemed by the Agency to have met
9 Program terms and requirements applicable to
10 direct Program participation. In developing
11 contracts for the delivery of renewable energy
12 credits from geothermal heating and cooling
13 systems, the Agency may establish fees applicable
14 to each contract assignment.
15 (10) If, at any time, approved applications
16 for the Program exceed funds collected by the
17 electric utility or would cause the Agency to
18 exceed the limitation on the amount of renewable
19 energy resources that may be procured, then the
20 Agency may consider future uncommitted funds to be
21 reserved for these contracts on a first-come,
22 first-served basis.
23 (iv) In order to advance priority access to the
24 clean energy economy for businesses and workers from
25 communities that have been excluded from economic
26 opportunities in the energy sector, been subject to
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1 disproportionate levels of pollution, and
2 disproportionately experienced negative public health
3 outcomes, the Agency shall apply its equity
4 accountability system and minimum equity standards
5 established under subsections (c-10), (c-15), (c-20),
6 (c-25), and (c-30) to geothermal heating and cooling
7 system renewable energy credit procurement and
8 programs and may include any proposed modifications to
9 the equity accountability system and minimum equity
10 standards that may be warranted with respect to
11 geothermal heating and cooling systems in its plan
12 submission to the Commission under Section 16-111.5 of
13 the Public Utilities Act.
14 (v) Projects shall be developed in compliance with
15 the prevailing wage and project labor agreement
16 requirements, as applicable, for renewable energy
17 projects in subparagraph (Q) of paragraph (1) of
18 subsection (c). Projects approved under this Program
19 are subject to the prevailing wage requirements
20 outlined in subitem (x) of item (1) of subparagraph
21 (Q) of paragraph (1) of this subsection (c). Renewable
22 energy credits for any single geothermal heating and
23 cooling project that is 142 tons or larger and is
24 procured under this Program after the effective date
25 of this amendatory Act of the 104th General Assembly
26 shall only be eligible if the associated project was
HB1700 Enrolled - 397 - LRB104 08228 SPS 18278 b
1 built by general contractors who entered into a
2 project labor agreement prior to construction. The
3 project labor agreement shall be filed with the
4 Director in accordance with procedures established by
5 the Agency through its long-term renewable resources
6 procurement plan. The project labor agreement shall
7 provide the names, addresses, and occupations of the
8 owner of the plant and the individuals representing
9 the labor organization employees that participate in
10 the project labor agreement. The project labor
11 agreement shall also specify terms and conditions as
12 provided in this Act.
13 (vi) The Agency shall strive to minimize
14 administrative expenses in the implementation of the
15 Program. The Agency may use any existing program
16 administrator and any applicable subcontractors to
17 develop, administer, implement, operate, and evaluate
18 the Program.
19 (T) Renewable energy credits procured under Agency
20 procurements or programs for community solar projects with
21 more than 3 megawatts in nameplate capacity must be
22 procured from facilities built by general contractors
23 that, prior to construction, enter into a project labor
24 agreement, as defined by this Act, subject to the
25 following requirements and limitations:
26 (i) The project labor agreement shall be filed
HB1700 Enrolled - 398 - LRB104 08228 SPS 18278 b
1 with the Director in accordance with procedures
2 established by the Agency through its long-term
3 renewable resources procurement plan. Any information
4 submitted to the Agency under this item (i) shall be
5 considered commercially sensitive information.
6 (ii) At a minimum, the project labor agreement
7 must provide the names, addresses, and occupations of
8 the owner of the project and any individuals
9 representing the labor organization of the employees
10 participating in the project labor agreement
11 consistent with the Project Labor Agreements Act. The
12 project labor agreement must also meet the terms and
13 conditions, as set forth in this Act.
14 (iii) It is the intent of this Section to ensure
15 that economic development occurs across communities in
16 this State, that emerging businesses may grow, and
17 that there is improved access to the clean energy
18 economy by persons who have greater economic burdens
19 to success. The Agency shall take into consideration
20 the unique cost of compliance of this subparagraph (T)
21 that may be borne by equity eligible contractors and
22 shall include those costs when determining the price
23 of renewable energy credits in the Adjustable Block
24 program. The Agency shall consider costs associated
25 with compliance, including in the development,
26 financing, or construction of projects. The Agency
HB1700 Enrolled - 399 - LRB104 08228 SPS 18278 b
1 shall periodically review the assumptions in these
2 costs and may adjust prices in compliance with
3 subparagraph (M) of this paragraph (1).
4 (2) (Blank).
5 (3) (Blank).
6 (4) The electric utility shall retire all renewable
7 energy credits used to comply with the standard.
8 (5) Beginning with the 2010 delivery year and ending
9 June 1, 2017, an electric utility subject to this
10 subsection (c) shall apply the lesser of the maximum
11 alternative compliance payment rate or the most recent
12 estimated alternative compliance payment rate for its
13 service territory for the corresponding compliance period,
14 established pursuant to subsection (d) of Section 16-115D
15 of the Public Utilities Act to its retail customers that
16 take service pursuant to the electric utility's hourly
17 pricing tariff or tariffs. The electric utility shall
18 retain all amounts collected as a result of the
19 application of the alternative compliance payment rate or
20 rates to such customers, and, beginning in 2011, the
21 utility shall include in the information provided under
22 item (1) of subsection (d) of Section 16-111.5 of the
23 Public Utilities Act the amounts collected under the
24 alternative compliance payment rate or rates for the prior
25 year ending May 31. Notwithstanding any limitation on the
26 procurement of renewable energy resources imposed by item
HB1700 Enrolled - 400 - LRB104 08228 SPS 18278 b
1 (2) of this subsection (c), the Agency shall increase its
2 spending on the purchase of renewable energy resources to
3 be procured by the electric utility for the next plan year
4 by an amount equal to the amounts collected by the utility
5 under the alternative compliance payment rate or rates in
6 the prior year ending May 31.
7 (6) The electric utility shall be entitled to recover
8 all of its costs associated with the procurement of
9 renewable energy credits under plans approved under this
10 Section and Section 16-111.5 of the Public Utilities Act.
11 These costs shall include associated reasonable expenses
12 for implementing the procurement programs, including, but
13 not limited to, the costs of administering and evaluating
14 the Adjustable Block program and the Geothermal Homes and
15 Businesses Program, through an automatic adjustment clause
16 tariff in accordance with subsection (k) of Section 16-108
17 of the Public Utilities Act.
18 (7) Renewable energy credits procured from new
19 photovoltaic projects or new distributed renewable energy
20 generation devices under this Section after June 1, 2017
21 (the effective date of Public Act 99-906) must be procured
22 from devices installed by a qualified person in compliance
23 with the requirements of Section 16-128A of the Public
24 Utilities Act and any rules or regulations adopted
25 thereunder.
26 In meeting the renewable energy requirements of this
HB1700 Enrolled - 401 - LRB104 08228 SPS 18278 b
1 subsection (c), to the extent feasible and consistent with
2 State and federal law, the renewable energy credit
3 procurements, Adjustable Block solar program, and
4 community renewable generation program shall provide
5 employment opportunities for all segments of the
6 population and workforce, including minority-owned and
7 female-owned business enterprises, and shall not,
8 consistent with State and federal law, discriminate based
9 on race or socioeconomic status.
10 (c-5) Procurement of renewable energy credits from new
11 renewable energy facilities installed at or adjacent to the
12 sites of electric generating facilities that burn or burned
13 coal as their primary fuel source.
14 (1) In addition to the procurement of renewable energy
15 credits pursuant to long-term renewable resources
16 procurement plans in accordance with subsection (c) of
17 this Section and Section 16-111.5 of the Public Utilities
18 Act, the Agency shall conduct procurement events in
19 accordance with this subsection (c-5) for the procurement
20 by electric utilities that served more than 300,000 retail
21 customers in this State as of January 1, 2019 of renewable
22 energy credits from new renewable energy facilities to be
23 installed at or adjacent to the sites of electric
24 generating facilities that, as of January 1, 2016, burned
25 coal as their primary fuel source and meet the other
26 criteria specified in this subsection (c-5). For purposes
HB1700 Enrolled - 402 - LRB104 08228 SPS 18278 b
1 of this subsection (c-5), "new renewable energy facility"
2 means a new utility-scale solar project as defined in this
3 Section 1-75. The renewable energy credits procured
4 pursuant to this subsection (c-5) may be included or
5 counted for purposes of compliance with the amounts of
6 renewable energy credits required to be procured pursuant
7 to subsection (c) of this Section to the extent that there
8 are otherwise shortfalls in compliance with such
9 requirements. The procurement of renewable energy credits
10 by electric utilities pursuant to this subsection (c-5)
11 shall be funded solely by revenues collected from the Coal
12 to Solar and Energy Storage Initiative Charge provided for
13 in this subsection (c-5) and subsection (i-5) of Section
14 16-108 of the Public Utilities Act, shall not be funded by
15 revenues collected through any of the other funding
16 mechanisms provided for in subsection (c) of this Section,
17 and shall not be subject to the limitation imposed by
18 subsection (c) on charges to retail customers for costs to
19 procure renewable energy resources pursuant to subsection
20 (c), and shall not be subject to any other requirements or
21 limitations of subsection (c).
22 (2) The Agency shall conduct 2 procurement events to
23 select owners of electric generating facilities meeting
24 the eligibility criteria specified in this subsection
25 (c-5) to enter into long-term contracts to sell renewable
26 energy credits to electric utilities serving more than
HB1700 Enrolled - 403 - LRB104 08228 SPS 18278 b
1 300,000 retail customers in this State as of January 1,
2 2019. The first procurement event shall be conducted no
3 later than March 31, 2022, unless the Agency elects to
4 delay it, until no later than May 1, 2022, due to its
5 overall volume of work, and shall be to select owners of
6 electric generating facilities located in this State and
7 south of federal Interstate Highway 80 that meet the
8 eligibility criteria specified in this subsection (c-5).
9 The second procurement event shall be conducted no sooner
10 than September 30, 2022 and no later than October 31, 2022
11 and shall be to select owners of electric generating
12 facilities located anywhere in this State that meet the
13 eligibility criteria specified in this subsection (c-5).
14 The Agency shall establish and announce a time period,
15 which shall begin no later than 30 days prior to the
16 scheduled date for the procurement event, during which
17 applicants may submit applications to be selected as
18 suppliers of renewable energy credits pursuant to this
19 subsection (c-5). The eligibility criteria for selection
20 as a supplier of renewable energy credits pursuant to this
21 subsection (c-5) shall be as follows:
22 (A) The applicant owns an electric generating
23 facility located in this State that: (i) as of January
24 1, 2016, burned coal as its primary fuel to generate
25 electricity; and (ii) has, or had prior to retirement,
26 an electric generating capacity of at least 150
HB1700 Enrolled - 404 - LRB104 08228 SPS 18278 b
1 megawatts. The electric generating facility can be
2 either: (i) retired as of the date of the procurement
3 event; or (ii) still operating as of the date of the
4 procurement event.
5 (B) The applicant is not (i) an electric
6 cooperative 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 or
10 an entity owned by entities described in (i) or (ii);
11 and the coal-fueled electric generating facility was
12 at one time owned, in whole or in part, by a public
13 utility as defined in Section 3-105 of the Public
14 Utilities Act.
15 (C) If participating in the first procurement
16 event, the applicant proposes and commits to construct
17 and operate, at the site, and if necessary for
18 sufficient space on property adjacent to the existing
19 property, at which the electric generating facility
20 identified in paragraph (A) is located: (i) a new
21 renewable energy facility of at least 20 megawatts but
22 no more than 100 megawatts of electric generating
23 capacity, and (ii) an energy storage facility having a
24 storage capacity equal to at least 2 megawatts and at
25 most 10 megawatts. If participating in the second
26 procurement event, the applicant proposes and commits
HB1700 Enrolled - 405 - LRB104 08228 SPS 18278 b
1 to construct and operate, at the site, and if
2 necessary for sufficient space on property adjacent to
3 the existing property, at which the electric
4 generating facility identified in paragraph (A) is
5 located: (i) a new renewable energy facility of at
6 least 5 megawatts but no more than 20 megawatts of
7 electric generating capacity, and (ii) an energy
8 storage facility having a storage capacity equal to at
9 least 0.5 megawatts and at most one megawatt.
10 (D) The applicant agrees that the new renewable
11 energy facility and the energy storage facility will
12 be constructed or installed by a qualified entity or
13 entities in compliance with the requirements of
14 subsection (g) of Section 16-128A of the Public
15 Utilities Act and any rules adopted thereunder.
16 (E) The applicant agrees that personnel operating
17 the new renewable energy facility and the energy
18 storage facility will have the requisite skills,
19 knowledge, training, experience, and competence, which
20 may be demonstrated by completion or current
21 participation and ultimate completion by employees of
22 an accredited or otherwise recognized apprenticeship
23 program for the employee's particular craft, trade, or
24 skill, including through training and education
25 courses and opportunities offered by the owner to
26 employees of the coal-fueled electric generating
HB1700 Enrolled - 406 - LRB104 08228 SPS 18278 b
1 facility or by previous employment experience
2 performing the employee's particular work skill or
3 function.
4 (F) The applicant commits that not less than the
5 prevailing wage, as determined pursuant to the
6 Prevailing Wage Act, will be paid to the applicant's
7 employees engaged in construction activities
8 associated with the new renewable energy facility and
9 the new energy storage facility and to the employees
10 of applicant's contractors engaged in construction
11 activities associated with the new renewable energy
12 facility and the new energy storage facility, and
13 that, on or before the commercial operation date of
14 the new renewable energy facility, the applicant shall
15 file a report with the Agency certifying that the
16 requirements of this subparagraph (F) have been met.
17 (G) The applicant commits that if selected, it
18 will negotiate a project labor agreement for the
19 construction of the new renewable energy facility and
20 associated energy storage facility that includes
21 provisions requiring the parties to the agreement to
22 work together to establish diversity threshold
23 requirements and to ensure best efforts to meet
24 diversity targets, improve diversity at the applicable
25 job site, create diverse apprenticeship opportunities,
26 and create opportunities to employ former coal-fired
HB1700 Enrolled - 407 - LRB104 08228 SPS 18278 b
1 power plant workers.
2 (H) The applicant commits to enter into a contract
3 or contracts for the applicable duration to provide
4 specified numbers of renewable energy credits each
5 year from the new renewable energy facility to
6 electric utilities that served more than 300,000
7 retail customers in this State as of January 1, 2019,
8 at a price of $30 per renewable energy credit. The
9 price per renewable energy credit shall be fixed at
10 $30 for the applicable duration and the renewable
11 energy credits shall not be indexed renewable energy
12 credits as provided for in item (v) of subparagraph
13 (G) of paragraph (1) of subsection (c) of Section 1-75
14 of this Act. The applicable duration of each contract
15 shall be 20 years, unless the applicant is physically
16 interconnected to the PJM Interconnection, LLC
17 transmission grid and had a generating capacity of at
18 least 1,200 megawatts as of January 1, 2021, in which
19 case the applicable duration of the contract shall be
20 15 years.
21 (I) The applicant's application is certified by an
22 officer of the applicant and by an officer of the
23 applicant's ultimate parent company, if any.
24 (3) An applicant may submit applications to contract
25 to supply renewable energy credits from more than one new
26 renewable energy facility to be constructed at or adjacent
HB1700 Enrolled - 408 - LRB104 08228 SPS 18278 b
1 to one or more qualifying electric generating facilities
2 owned by the applicant. The Agency may select new
3 renewable energy facilities to be located at or adjacent
4 to the sites of more than one qualifying electric
5 generation facility owned by an applicant to contract with
6 electric utilities to supply renewable energy credits from
7 such facilities.
8 (4) The Agency shall assess fees to each applicant to
9 recover the Agency's costs incurred in receiving and
10 evaluating applications, conducting the procurement event,
11 developing contracts for sale, delivery and purchase of
12 renewable energy credits, and monitoring the
13 administration of such contracts, as provided for in this
14 subsection (c-5), including fees paid to a procurement
15 administrator retained by the Agency for one or more of
16 these purposes.
17 (5) The Agency shall select the applicants and the new
18 renewable energy facilities to contract with electric
19 utilities to supply renewable energy credits in accordance
20 with this subsection (c-5). In the first procurement
21 event, the Agency shall select applicants and new
22 renewable energy facilities to supply renewable energy
23 credits, at a price of $30 per renewable energy credit,
24 aggregating to no less than 400,000 renewable energy
25 credits per year for the applicable duration, assuming
26 sufficient qualifying applications to supply, in the
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1 aggregate, at least that amount of renewable energy
2 credits per year; and not more than 580,000 renewable
3 energy credits per year for the applicable duration. In
4 the second procurement event, the Agency shall select
5 applicants and new renewable energy facilities to supply
6 renewable energy credits, at a price of $30 per renewable
7 energy credit, aggregating to no more than 625,000
8 renewable energy credits per year less the amount of
9 renewable energy credits each year contracted for as a
10 result of the first procurement event, for the applicable
11 durations. The number of renewable energy credits to be
12 procured as specified in this paragraph (5) shall not be
13 reduced based on renewable energy credits procured in the
14 self-direct renewable energy credit compliance program
15 established pursuant to subparagraph (R) of paragraph (1)
16 of subsection (c) of Section 1-75.
17 (6) The obligation to purchase renewable energy
18 credits from the applicants and their new renewable energy
19 facilities selected by the Agency shall be allocated to
20 the electric utilities based on their respective
21 percentages of kilowatthours delivered to delivery
22 services customers to the aggregate kilowatthour
23 deliveries by the electric utilities to delivery services
24 customers for the year ended December 31, 2021. In order
25 to achieve these allocation percentages between or among
26 the electric utilities, the Agency shall require each
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1 applicant that is selected in the procurement event to
2 enter into a contract with each electric utility for the
3 sale and purchase of renewable energy credits from each
4 new renewable energy facility to be constructed and
5 operated by the applicant, with the sale and purchase
6 obligations under the contracts to aggregate to the total
7 number of renewable energy credits per year to be supplied
8 by the applicant from the new renewable energy facility.
9 (7) The Agency shall submit its proposed selection of
10 applicants, new renewable energy facilities to be
11 constructed, and renewable energy credit amounts for each
12 procurement event to the Commission for approval. The
13 Commission shall, within 2 business days after receipt of
14 the Agency's proposed selections, approve the proposed
15 selections if it determines that the applicants and the
16 new renewable energy facilities to be constructed meet the
17 selection criteria set forth in this subsection (c-5) and
18 that the Agency seeks approval for contracts of applicable
19 durations aggregating to no more than the maximum amount
20 of renewable energy credits per year authorized by this
21 subsection (c-5) for the procurement event, at a price of
22 $30 per renewable energy credit.
23 (8) The Agency, in conjunction with its procurement
24 administrator if one is retained, the electric utilities,
25 and potential applicants for contracts to produce and
26 supply renewable energy credits pursuant to this
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1 subsection (c-5), shall develop a standard form contract
2 for the sale, delivery and purchase of renewable energy
3 credits pursuant to this subsection (c-5). Each contract
4 resulting from the first procurement event shall allow for
5 a commercial operation date for the new renewable energy
6 facility of either June 1, 2023 or June 1, 2024, with such
7 dates subject to adjustment as provided in this paragraph.
8 Each contract resulting from the second procurement event
9 shall provide for a commercial operation date on June 1
10 next occurring up to 48 months after execution of the
11 contract. Each contract shall provide that the owner shall
12 receive payments for renewable energy credits for the
13 applicable durations beginning with the commercial
14 operation date of the new renewable energy facility. The
15 form contract shall provide for adjustments to the
16 commercial operation and payment start dates as needed due
17 to any delays in completing the procurement and
18 contracting processes, in finalizing interconnection
19 agreements and installing interconnection facilities, and
20 in obtaining other necessary governmental permits and
21 approvals. The form contract shall be, to the maximum
22 extent possible, consistent with standard electric
23 industry contracts for sale, delivery, and purchase of
24 renewable energy credits while taking into account the
25 specific requirements of this subsection (c-5). The form
26 contract shall provide for over-delivery and
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1 under-delivery of renewable energy credits within
2 reasonable ranges during each 12-month period and penalty,
3 default, and enforcement provisions for failure of the
4 selling party to deliver renewable energy credits as
5 specified in the contract and to comply with the
6 requirements of this subsection (c-5). The standard form
7 contract shall specify that all renewable energy credits
8 delivered to the electric utility pursuant to the contract
9 shall be retired. The Agency shall make the proposed
10 contracts available for a reasonable period for comment by
11 potential applicants, and shall publish the final form
12 contract at least 30 days before the date of the first
13 procurement event.
14 (9) Coal to Solar and Energy Storage Initiative
15 Charge.
16 (A) By no later than July 1, 2022, each electric
17 utility that served more than 300,000 retail customers
18 in this State as of January 1, 2019 shall file a tariff
19 with the Commission for the billing and collection of
20 a Coal to Solar and Energy Storage Initiative Charge
21 in accordance with subsection (i-5) of Section 16-108
22 of the Public Utilities Act, with such tariff to be
23 effective, following review and approval or
24 modification by the Commission, beginning January 1,
25 2023. The tariff shall provide for the calculation and
26 setting of the electric utility's Coal to Solar and
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1 Energy Storage Initiative Charge to collect revenues
2 estimated to be sufficient, in the aggregate, (i) to
3 enable the electric utility to pay for the renewable
4 energy credits it has contracted to purchase in the
5 delivery year beginning June 1, 2023 and each delivery
6 year thereafter from new renewable energy facilities
7 located at the sites of qualifying electric generating
8 facilities, and (ii) to fund the grant payments to be
9 made in each delivery year by the Department of
10 Commerce and Economic Opportunity, or any successor
11 department or agency, which shall be referred to in
12 this subsection (c-5) as the Department, pursuant to
13 paragraph (10) of this subsection (c-5). The electric
14 utility's tariff shall provide for the billing and
15 collection of the Coal to Solar and Energy Storage
16 Initiative Charge on each kilowatthour of electricity
17 delivered to its delivery services customers within
18 its service territory and shall provide for an annual
19 reconciliation of revenues collected with actual
20 costs, in accordance with subsection (i-5) of Section
21 16-108 of the Public Utilities Act.
22 (B) Each electric utility shall remit on a monthly
23 basis to the State Treasurer, for deposit in the Coal
24 to Solar and Energy Storage Initiative Fund provided
25 for in this subsection (c-5), the electric utility's
26 collections of the Coal to Solar and Energy Storage
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1 Initiative Charge in the amount estimated to be needed
2 by the Department for grant payments pursuant to grant
3 contracts entered into by the Department pursuant to
4 paragraph (10) of this subsection (c-5).
5 (10) Coal to Solar and Energy Storage Initiative Fund.
6 (A) The Coal to Solar and Energy Storage
7 Initiative Fund is established as a special fund in
8 the State treasury. The Coal to Solar and Energy
9 Storage Initiative Fund is authorized to receive, by
10 statutory deposit, that portion specified in item (B)
11 of paragraph (9) of this subsection (c-5) of moneys
12 collected by electric utilities through imposition of
13 the Coal to Solar and Energy Storage Initiative Charge
14 required by this subsection (c-5). The Coal to Solar
15 and Energy Storage Initiative Fund shall be
16 administered by the Department to provide grants to
17 support the installation and operation of energy
18 storage facilities at the sites of qualifying electric
19 generating facilities meeting the criteria specified
20 in this paragraph (10).
21 (B) The Coal to Solar and Energy Storage
22 Initiative Fund shall not be subject to sweeps,
23 administrative charges, or chargebacks, including, but
24 not limited to, those authorized under Section 8h of
25 the State Finance Act, that would in any way result in
26 the transfer of those funds from the Coal to Solar and
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1 Energy Storage Initiative Fund to any other fund of
2 this State or in having any such funds utilized for any
3 purpose other than the express purposes set forth in
4 this paragraph (10).
5 (C) The Department shall utilize up to
6 $280,500,000 in the Coal to Solar and Energy Storage
7 Initiative Fund for grants, assuming sufficient
8 qualifying applicants, to support installation of
9 energy storage facilities at the sites of up to 3
10 qualifying electric generating facilities located in
11 the Midcontinent Independent System Operator, Inc.,
12 region in Illinois and the sites of up to 2 qualifying
13 electric generating facilities located in the PJM
14 Interconnection, LLC region in Illinois that meet the
15 criteria set forth in this subparagraph (C). The
16 criteria for receipt of a grant pursuant to this
17 subparagraph (C) are as follows:
18 (1) the electric generating facility at the
19 site has, or had prior to retirement, an electric
20 generating capacity of at least 150 megawatts;
21 (2) the electric generating facility burns (or
22 burned prior to retirement) coal as its primary
23 source of fuel;
24 (3) if the electric generating facility is
25 retired, it was retired subsequent to January 1,
26 2016;
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1 (4) the owner of the electric generating
2 facility has not been selected by the Agency
3 pursuant to this subsection (c-5) of this Section
4 to enter into a contract to sell renewable energy
5 credits to one or more electric utilities from a
6 new renewable energy facility located or to be
7 located at or adjacent to the site at which the
8 electric generating facility is located;
9 (5) the electric generating facility located
10 at the site was at one time owned, in whole or in
11 part, by a public utility as defined in Section
12 3-105 of the Public Utilities Act;
13 (6) the electric generating facility at the
14 site is not owned by (i) an electric cooperative
15 as defined in Section 3-119 of the Public
16 Utilities Act, or (ii) an entity described in
17 subsection (b)(1) of Section 3-105 of the Public
18 Utilities Act, or an association or consortium of
19 or an entity owned by entities described in items
20 (i) or (ii);
21 (7) the proposed energy storage facility at
22 the site will have energy storage capacity of at
23 least 37 megawatts;
24 (8) the owner commits to place the energy
25 storage facility into commercial operation on
26 either June 1, 2023, June 1, 2024, or June 1, 2025,
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1 with such date subject to adjustment as needed due
2 to any delays in completing the grant contracting
3 process, in finalizing interconnection agreements
4 and in installing interconnection facilities, and
5 in obtaining necessary governmental permits and
6 approvals;
7 (9) the owner agrees that the new energy
8 storage facility will be constructed or installed
9 by a qualified entity or entities consistent with
10 the requirements of subsection (g) of Section
11 16-128A of the Public Utilities Act and any rules
12 adopted under that Section;
13 (10) the owner agrees that personnel operating
14 the energy storage facility will have the
15 requisite skills, knowledge, training, experience,
16 and competence, which may be demonstrated by
17 completion or current participation and ultimate
18 completion by employees of an accredited or
19 otherwise recognized apprenticeship program for
20 the employee's particular craft, trade, or skill,
21 including through training and education courses
22 and opportunities offered by the owner to
23 employees of the coal-fueled electric generating
24 facility or by previous employment experience
25 performing the employee's particular work skill or
26 function;
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1 (11) the owner commits that not less than the
2 prevailing wage, as determined pursuant to the
3 Prevailing Wage Act, will be paid to the owner's
4 employees engaged in construction activities
5 associated with the new energy storage facility
6 and to the employees of the owner's contractors
7 engaged in construction activities associated with
8 the new energy storage facility, and that, on or
9 before the commercial operation date of the new
10 energy storage facility, the owner shall file a
11 report with the Department certifying that the
12 requirements of this subparagraph (11) have been
13 met; and
14 (12) the owner commits that if selected to
15 receive a grant, it will negotiate a project labor
16 agreement for the construction of the new energy
17 storage facility that includes provisions
18 requiring the parties to the agreement to work
19 together to establish diversity threshold
20 requirements and to ensure best efforts to meet
21 diversity targets, improve diversity at the
22 applicable job site, create diverse apprenticeship
23 opportunities, and create opportunities to employ
24 former coal-fired power plant workers.
25 The Department shall accept applications for this
26 grant program until March 31, 2022 and shall announce
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1 the award of grants no later than June 1, 2022. The
2 Department shall make the grant payments to a
3 recipient in equal annual amounts for 10 years
4 following the date the energy storage facility is
5 placed into commercial operation. The annual grant
6 payments to a qualifying energy storage facility shall
7 be $110,000 per megawatt of energy storage capacity,
8 with total annual grant payments pursuant to this
9 subparagraph (C) for qualifying energy storage
10 facilities not to exceed $28,050,000 in any year.
11 (D) Grants of funding for energy storage
12 facilities pursuant to subparagraph (C) of this
13 paragraph (10), from the Coal to Solar and Energy
14 Storage Initiative Fund, shall be memorialized in
15 grant contracts between the Department and the
16 recipient. The grant contracts shall specify the date
17 or dates in each year on which the annual grant
18 payments shall be paid.
19 (E) All disbursements from the Coal to Solar and
20 Energy Storage Initiative Fund shall be made only upon
21 warrants of the Comptroller drawn upon the Treasurer
22 as custodian of the Fund upon vouchers signed by the
23 Director of the Department or by the person or persons
24 designated by the Director of the Department for that
25 purpose. The Comptroller is authorized to draw the
26 warrants upon vouchers so signed. The Treasurer shall
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1 accept all written warrants so signed and shall be
2 released from liability for all payments made on those
3 warrants.
4 (11) Diversity, equity, and inclusion plans.
5 (A) Each applicant selected in a procurement event
6 to contract to supply renewable energy credits in
7 accordance with this subsection (c-5) and each owner
8 selected by the Department to receive a grant or
9 grants to support the construction and operation of a
10 new energy storage facility or facilities in
11 accordance with this subsection (c-5) shall, within 60
12 days following the Commission's approval of the
13 applicant to contract to supply renewable energy
14 credits or within 60 days following execution of a
15 grant contract with the Department, as applicable,
16 submit to the Commission a diversity, equity, and
17 inclusion plan setting forth the applicant's or
18 owner's numeric goals for the diversity composition of
19 its supplier entities for the new renewable energy
20 facility or new energy storage facility, as
21 applicable, which shall be referred to for purposes of
22 this paragraph (11) as the project, and the
23 applicant's or owner's action plan and schedule for
24 achieving those goals.
25 (B) For purposes of this paragraph (11), diversity
26 composition shall be based on the percentage, which
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1 shall be a minimum of 25%, of eligible expenditures
2 for contract awards for materials and services (which
3 shall be defined in the plan) to business enterprises
4 owned by minority persons, women, or persons with
5 disabilities as defined in Section 2 of the Business
6 Enterprise for Minorities, Women, and Persons with
7 Disabilities Act, to LGBTQ business enterprises, to
8 veteran-owned business enterprises, and to business
9 enterprises located in environmental justice
10 communities. The diversity composition goals of the
11 plan may include eligible expenditures in areas for
12 vendor or supplier opportunities in addition to
13 development and construction of the project, and may
14 exclude from eligible expenditures materials and
15 services with limited market availability, limited
16 production and availability from suppliers in the
17 United States, such as solar panels and storage
18 batteries, and material and services that are subject
19 to critical energy infrastructure or cybersecurity
20 requirements or restrictions. The plan may provide
21 that the diversity composition goals may be met
22 through Tier 1 Direct or Tier 2 subcontracting
23 expenditures or a combination thereof for the project.
24 (C) The plan shall provide for, but not be limited
25 to: (i) internal initiatives, including multi-tier
26 initiatives, by the applicant or owner, or by its
HB1700 Enrolled - 422 - LRB104 08228 SPS 18278 b
1 engineering, procurement and construction contractor
2 if one is used for the project, which for purposes of
3 this paragraph (11) shall be referred to as the EPC
4 contractor, to enable diverse businesses to be
5 considered fairly for selection to provide materials
6 and services; (ii) requirements for the applicant or
7 owner or its EPC contractor to proactively solicit and
8 utilize diverse businesses to provide materials and
9 services; and (iii) requirements for the applicant or
10 owner or its EPC contractor to hire a diverse
11 workforce for the project. The plan shall include a
12 description of the applicant's or owner's diversity
13 recruiting efforts both for the project and for other
14 areas of the applicant's or owner's business
15 operations. The plan shall provide for the imposition
16 of financial penalties on the applicant's or owner's
17 EPC contractor for failure to exercise best efforts to
18 comply with and execute the EPC contractor's diversity
19 obligations under the plan. The plan may provide for
20 the applicant or owner to set aside a portion of the
21 work on the project to serve as an incubation program
22 for qualified businesses, as specified in the plan,
23 owned by minority persons, women, persons with
24 disabilities, LGBTQ persons, and veterans, and
25 businesses located in environmental justice
26 communities, seeking to enter the renewable energy
HB1700 Enrolled - 423 - LRB104 08228 SPS 18278 b
1 industry.
2 (D) The applicant or owner may submit a revised or
3 updated plan to the Commission from time to time as
4 circumstances warrant. The applicant or owner shall
5 file annual reports with the Commission detailing the
6 applicant's or owner's progress in implementing its
7 plan and achieving its goals and any modifications the
8 applicant or owner has made to its plan to better
9 achieve its diversity, equity and inclusion goals. The
10 applicant or owner shall file a final report on the
11 fifth June 1 following the commercial operation date
12 of the new renewable energy resource or new energy
13 storage facility, but the applicant or owner shall
14 thereafter continue to be subject to applicable
15 reporting requirements of Section 5-117 of the Public
16 Utilities Act.
17 (c-10) Equity accountability system. It is the purpose of
18 this subsection (c-10) to create an equity accountability
19 system, which includes the minimum equity standards for all
20 renewable energy procurements, the equity category of the
21 Adjustable Block Program, and the equity prioritization for
22 noncompetitive procurements, that is successful in advancing
23 priority access to the clean energy economy for businesses and
24 workers from communities that have been excluded from economic
25 opportunities in the energy sector, have been subject to
26 disproportionate levels of pollution, and have
HB1700 Enrolled - 424 - LRB104 08228 SPS 18278 b
1 disproportionately experienced negative public health
2 outcomes. Further, it is the purpose of this subsection to
3 ensure that this equity accountability system is successful in
4 advancing equity across Illinois by providing access to the
5 clean energy economy for businesses and workers from
6 communities that have been historically excluded from economic
7 opportunities in the energy sector, have been subject to
8 disproportionate levels of pollution, and have
9 disproportionately experienced negative public health
10 outcomes.
11 (1) Minimum equity standards. The Agency shall create
12 programs with the purpose of increasing access to and
13 development of equity eligible contractors, who are prime
14 contractors and subcontractors, across all of the programs
15 it manages. All applications for renewable energy credit
16 procurements shall comply with specific minimum equity
17 commitments. Starting in the delivery year immediately
18 following the next long-term renewable resources
19 procurement plan, at least 10% of the project workforce
20 for each entity participating in a procurement program
21 outlined in this subsection (c-10) must be done by equity
22 eligible persons or equity eligible contractors. The
23 Agency shall increase the minimum percentage each delivery
24 year thereafter by increments that ensure a statewide
25 average of 30% of the project workforce for each entity
26 participating in a procurement program is done by equity
HB1700 Enrolled - 425 - LRB104 08228 SPS 18278 b
1 eligible persons or equity eligible contractors by 2030.
2 The Agency shall propose a schedule of percentage
3 increases to the minimum equity standards in its draft
4 revised renewable energy resources procurement plan
5 submitted to the Commission for approval pursuant to
6 paragraph (5) of subsection (b) of Section 16-111.5 of the
7 Public Utilities Act. In determining these annual
8 increases, the Agency shall have the discretion to
9 establish different minimum equity standards for different
10 types of procurements and different regions of the State
11 if the Agency finds that doing so will further the
12 purposes of this subsection (c-10). The proposed schedule
13 of annual increases shall be revisited and updated on an
14 annual basis. Revisions shall be developed with
15 stakeholder input, including from equity eligible persons,
16 equity eligible contractors, clean energy industry
17 representatives, and community-based organizations that
18 work with such persons and contractors.
19 (A) At the start of each delivery year, the Agency
20 shall require a compliance plan from each entity
21 participating in a procurement program of subsection
22 (c) of this Section, and entities opting to comply
23 with the minimum equity standard through the Illinois
24 Solar for All Program under Section 1-56 of this Act,
25 that demonstrates how they will achieve compliance
26 with the minimum equity standard percentage for work
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1 completed in that delivery year. If an entity applies
2 for its approved vendor or designee status between
3 delivery years, the Agency shall require a compliance
4 plan at the time of application.
5 (B) Halfway through each delivery year, the Agency
6 shall require each entity participating in a
7 procurement program to confirm that it will achieve
8 compliance in that delivery year, when applicable. The
9 Agency may offer corrective action plans to entities
10 that are not on track to achieve compliance.
11 (C) At the end of each delivery year, each entity
12 participating and completing work in that delivery
13 year in a procurement program of subsection (c) shall
14 submit a report to the Agency that demonstrates how it
15 achieved compliance with the minimum equity standards
16 percentage for that delivery year.
17 (D) The Agency shall prohibit participation in
18 procurement programs by an approved vendor or
19 designee, as applicable, or entities with which an
20 approved vendor or designee, as applicable, shares a
21 common parent company if an approved vendor or
22 designee, as applicable, failed to meet the minimum
23 equity standards for the prior delivery year. Waivers
24 approved for lack of equity eligible persons or equity
25 eligible contractors in a geographic area of a project
26 shall not count against the approved vendor or
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1 designee. The Agency shall offer a corrective action
2 plan for any such entities to assist them in obtaining
3 compliance and shall allow continued access to
4 procurement programs upon an approved vendor or
5 designee demonstrating compliance.
6 (E) The Agency shall pursue efficiencies achieved
7 by combining with other approved vendor or designee
8 reporting.
9 (2) Equity accountability system within the Adjustable
10 Block program. The equity category described in item (vi)
11 of subparagraph (K) of subsection (c) is only available to
12 applicants that are equity eligible contractors.
13 (3) Equity accountability system within competitive
14 procurements. Through its long-term renewable resources
15 procurement plan, the Agency shall develop requirements
16 for ensuring that competitive procurement processes,
17 including utility-scale solar, utility-scale wind, and
18 brownfield site photovoltaic projects, advance the equity
19 goals of this subsection (c-10). Subject to Commission
20 approval, the Agency shall develop bid application
21 requirements and a bid evaluation methodology for ensuring
22 that utilization of equity eligible contractors, whether
23 as bidders or as participants on project development, is
24 optimized, including requiring that winning or successful
25 applicants for utility-scale projects are or will partner
26 with equity eligible contractors and giving preference to
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1 bids through which a higher portion of contract value
2 flows to equity eligible contractors. To the extent
3 practicable, entities participating in competitive
4 procurements shall also be required to meet all the equity
5 accountability requirements for approved vendors and their
6 designees under this subsection (c-10). In developing
7 these requirements, the Agency shall also consider whether
8 equity goals can be further advanced through additional
9 measures.
10 (4) In the first revision to the long-term renewable
11 energy resources procurement plan and each revision
12 thereafter, the Agency shall include the following:
13 (A) The current status and number of equity
14 eligible contractors listed in the Energy Workforce
15 Equity Database designed in subsection (c-25),
16 including the number of equity eligible contractors
17 with current certifications as issued by the Agency.
18 (B) A mechanism for measuring, tracking, and
19 reporting project workforce at the approved vendor or
20 designee level, as applicable, which shall include a
21 measurement methodology and records to be made
22 available for audit by the Agency or the Program
23 Administrator.
24 (C) A program for approved vendors, designees,
25 eligible persons, and equity eligible contractors to
26 receive trainings, guidance, and other support from
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1 the Agency or its designee regarding the equity
2 category outlined in item (vi) of subparagraph (K) of
3 paragraph (1) of subsection (c) and in meeting the
4 minimum equity standards of this subsection (c-10).
5 (D) A process for certifying equity eligible
6 contractors and equity eligible persons. The
7 certification process shall coordinate with the Energy
8 Workforce Equity Database set forth in subsection
9 (c-25).
10 (E) An application for waiver of the minimum
11 equity standards of this subsection, which the Agency
12 shall have the discretion to grant in rare
13 circumstances. The Agency may grant such a waiver
14 where the applicant provides evidence of significant
15 efforts toward meeting the minimum equity commitment,
16 including: use of the Energy Workforce Equity
17 Database; efforts to hire or contract with entities
18 that hire eligible persons; and efforts to establish
19 contracting relationships with eligible contractors.
20 The Agency shall support applicants in understanding
21 the Energy Workforce Equity Database and other
22 resources for pursuing compliance of the minimum
23 equity standards. Waivers shall be project-specific,
24 unless the Agency deems it necessary to grant a waiver
25 across a portfolio of projects, and in effect for no
26 longer than one year. Any waiver extension or
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1 subsequent waiver request from an applicant shall be
2 subject to the requirements of this Section and shall
3 specify efforts made to reach compliance. When
4 considering whether to grant a waiver, and to what
5 extent, the Agency shall consider the degree to which
6 similarly situated applicants have been able to meet
7 these minimum equity commitments. For repeated waiver
8 requests for specific lack of eligible persons or
9 eligible contractors available, the Agency shall make
10 recommendations to target recruitment to add such
11 eligible persons or eligible contractors to the
12 database.
13 (5) The Agency shall collect information about work on
14 projects or portfolios of projects subject to these
15 minimum equity standards to ensure compliance with this
16 subsection (c-10). Reporting in furtherance of this
17 requirement may be combined with other annual reporting
18 requirements. Such reporting shall include proof of
19 certification of each equity eligible contractor or equity
20 eligible person during the applicable time period.
21 As part of the reporting requirement under this
22 subparagraph (5), the Agency shall collect and report
23 information about the use of equity eligible contractors
24 and equity eligible persons, as well as Minimum Equity
25 Standard compliance and waiver usage on the Adjustable
26 Block program and utility-scale projects subject to
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1 project labor agreements. The Agency shall note any
2 instances of the projects being unable to meet or
3 requiring a waiver to meet Minimum Equity Standard
4 requirements and the location of those projects.
5 On an annual basis, the Agency shall submit a written
6 summary of its findings on an annual basis to the General
7 Assembly and the Governor and shall make the report and
8 summary available on the Agency's website.
9 (6) The Agency shall keep confidential all information
10 and communication that provides private or personal
11 information.
12 (7) Modifications to the equity accountability system.
13 As part of the update of the long-term renewable resources
14 procurement plan to be initiated in 2023, or sooner if the
15 Agency deems necessary, the Agency shall determine the
16 extent to which the equity accountability system described
17 in this subsection (c-10) has advanced the goals of this
18 amendatory Act of the 102nd General Assembly, including
19 through the inclusion of equity eligible persons and
20 equity eligible contractors in renewable energy credit
21 projects. If the Agency finds that the equity
22 accountability system has failed to meet those goals to
23 its fullest potential, the Agency may revise the following
24 criteria for future Agency procurements: (A) the
25 percentage of project workforce, or other appropriate
26 workforce measure, certified as equity eligible persons or
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1 equity eligible contractors; (B) definitions for equity
2 investment eligible persons and equity investment eligible
3 community; and (C) such other modifications necessary to
4 advance the goals of this amendatory Act of the 102nd
5 General Assembly effectively. Such revised criteria may
6 also establish distinct equity accountability systems for
7 different types of procurements or different regions of
8 the State if the Agency finds that doing so will further
9 the purposes of such programs. Revisions shall be
10 developed with stakeholder input, including from equity
11 eligible persons, equity eligible contractors, and
12 community-based organizations that work with such persons
13 and contractors.
14 (c-15) Racial discrimination elimination powers and
15 process.
16 (1) Purpose. It is the purpose of this subsection to
17 empower the Agency and other State actors to remedy racial
18 discrimination in Illinois' clean energy economy as
19 effectively and expediently as possible, including through
20 the use of race-conscious remedies, such as race-conscious
21 contracting and hiring goals, as consistent with State and
22 federal law.
23 (2) Racial disparity and discrimination review
24 process.
25 (A) Within one year after awarding contracts using
26 the equity actions processes established in this
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1 Section, the Agency shall publish a report evaluating
2 the effectiveness of the equity actions point criteria
3 of this Section in increasing participation of equity
4 eligible persons and equity eligible contractors. The
5 report shall disaggregate participating workers and
6 contractors by race and ethnicity. The report shall be
7 forwarded to the Governor, the General Assembly, and
8 the Illinois Commerce Commission and be made available
9 to the public.
10 (B) As soon as is practicable thereafter, the
11 Agency, in consultation with the Department of
12 Commerce and Economic Opportunity, Department of
13 Labor, and other agencies that may be relevant, shall
14 commission and publish a disparity and availability
15 study that measures the presence and impact of
16 discrimination on minority businesses and workers in
17 Illinois' clean energy economy. The Agency may hire
18 consultants and experts to conduct the disparity and
19 availability study, with the retention of those
20 consultants and experts exempt from the requirements
21 of Section 20-10 of the Illinois Procurement Code. The
22 Illinois Power Agency shall forward a copy of its
23 findings and recommendations to the Governor, the
24 General Assembly, and the Illinois Commerce
25 Commission. If the disparity and availability study
26 establishes a strong basis in evidence that there is
HB1700 Enrolled - 434 - LRB104 08228 SPS 18278 b
1 discrimination in Illinois' clean energy economy, the
2 Agency, Department of Commerce and Economic
3 Opportunity, Department of Labor, Department of
4 Corrections, and other appropriate agencies shall take
5 appropriate remedial actions, including race-conscious
6 remedial actions as consistent with State and federal
7 law, to effectively remedy this discrimination. Such
8 remedies may include modification of the equity
9 accountability system as described in subsection
10 (c-10).
11 (c-20) Program data collection.
12 (1) Purpose. Data collection, data analysis, and
13 reporting are critical to ensure that the benefits of the
14 clean energy economy provided to Illinois residents and
15 businesses are equitably distributed across the State. The
16 Agency shall collect data from program applicants in order
17 to track and improve equitable distribution of benefits
18 across Illinois communities for all procurements the
19 Agency conducts. The Agency shall use this data to, among
20 other things, measure any potential impact of racial
21 discrimination on the distribution of benefits and provide
22 information necessary to correct any discrimination
23 through methods consistent with State and federal law.
24 (2) Agency collection of program data. The Agency
25 shall collect demographic and geographic data for each
26 entity awarded contracts under any Agency-administered
HB1700 Enrolled - 435 - LRB104 08228 SPS 18278 b
1 program.
2 (3) Required information to be collected. The Agency
3 shall collect the following information from applicants
4 and program participants where applicable:
5 (A) demographic information, including racial or
6 ethnic identity for real persons employed, contracted,
7 or subcontracted through the program and owners of
8 businesses or entities that apply to receive renewable
9 energy credits from the Agency;
10 (B) geographic location of the residency of real
11 persons employed, contracted, or subcontracted through
12 the program and geographic location of the
13 headquarters of the business or entity that applies to
14 receive renewable energy credits from the Agency; and
15 (C) any other information the Agency determines is
16 necessary for the purpose of achieving the purpose of
17 this subsection.
18 (4) Publication of collected information. The Agency
19 shall publish, at least annually, information on the
20 demographics of program participants on an aggregate
21 basis.
22 (5) Nothing in this subsection shall be interpreted to
23 limit the authority of the Agency, or other agency or
24 department of the State, to require or collect demographic
25 information from applicants of other State programs.
26 (c-25) Energy Workforce Equity Database.
HB1700 Enrolled - 436 - LRB104 08228 SPS 18278 b
1 (1) The Agency, in consultation with the Department of
2 Commerce and Economic Opportunity, shall create an Energy
3 Workforce Equity Database, and may contract with a third
4 party to do so ("database program administrator"). If the
5 Department decides to contract with a third party, that
6 third party shall be exempt from the requirements of
7 Section 20-10 of the Illinois Procurement Code. The Energy
8 Workforce Equity Database shall be a searchable database
9 of suppliers, vendors, and subcontractors for clean energy
10 industries that is:
11 (A) publicly accessible;
12 (B) easy for people to find and use;
13 (C) organized by company specialty or field;
14 (D) region-specific; and
15 (E) populated with information including, but not
16 limited to, contacts for suppliers, vendors, or
17 subcontractors who are minority and women-owned
18 business enterprise certified or who participate or
19 have participated in any of the programs described in
20 this Act.
21 (2) The Agency shall create an easily accessible,
22 public facing online tool using the database information
23 that includes, at a minimum, the following:
24 (A) a map of environmental justice and equity
25 investment eligible communities;
26 (B) job postings and recruiting opportunities;
HB1700 Enrolled - 437 - LRB104 08228 SPS 18278 b
1 (C) a means by which recruiting clean energy
2 companies can find and interact with current or former
3 participants of clean energy workforce training
4 programs;
5 (D) information on workforce training service
6 providers and training opportunities available to
7 prospective workers;
8 (E) renewable energy company diversity reporting;
9 (F) a list of equity eligible contractors with
10 their contact information, types of work performed,
11 and locations worked in;
12 (G) reporting on outcomes of the programs
13 described in the workforce programs of the Energy
14 Transition Act, including information such as, but not
15 limited to, retention rate, graduation rate, and
16 placement rates of trainees; and
17 (H) information about the Jobs and Environmental
18 Justice Grant Program, the Clean Energy Jobs and
19 Justice Fund, and other sources of capital.
20 (3) The Agency shall ensure the database is regularly
21 updated to ensure information is current and shall
22 coordinate with the Department of Commerce and Economic
23 Opportunity to ensure that it includes information on
24 individuals and entities that are or have participated in
25 the Clean Jobs Workforce Network Program, Clean Energy
26 Contractor Incubator Program, Returning Residents Clean
HB1700 Enrolled - 438 - LRB104 08228 SPS 18278 b
1 Jobs Training Program, or Clean Energy Primes Contractor
2 Accelerator Program.
3 (c-30) Enforcement of minimum equity standards. All
4 entities seeking renewable energy credits must submit an
5 annual report to demonstrate compliance with each of the
6 equity commitments required under subsection (c-10). If the
7 Agency concludes the entity has not met or maintained its
8 minimum equity standards required under the applicable
9 subparagraphs under subsection (c-10), the Agency shall deny
10 the entity's ability to participate in procurement programs in
11 subsection (c), including by withholding approved vendor or
12 designee status. The Agency may require the entity to enter
13 into a corrective action plan. An entity that is not
14 recertified for failing to meet required equity actions in
15 subparagraph (c-10) may reapply once they have a corrective
16 action plan and achieve compliance with the minimum equity
17 standards.
18 (d) Clean coal portfolio standard.
19 (1) The procurement plans shall include electricity
20 generated using clean coal. Each utility shall enter into
21 one or more sourcing agreements with the initial clean
22 coal facility, as provided in paragraph (3) of this
23 subsection (d), covering electricity generated by the
24 initial clean coal facility representing at least 5% of
25 each utility's total supply to serve the load of eligible
26 retail customers in 2015 and each year thereafter, as
HB1700 Enrolled - 439 - LRB104 08228 SPS 18278 b
1 described in paragraph (3) of this subsection (d), subject
2 to the limits specified in paragraph (2) of this
3 subsection (d). It is the goal of the State that by January
4 1, 2025, 25% of the electricity used in the State shall be
5 generated by cost-effective clean coal facilities. For
6 purposes of this subsection (d), "cost-effective" means
7 that the expenditures pursuant to such sourcing agreements
8 do not cause the limit stated in paragraph (2) of this
9 subsection (d) to be exceeded and do not exceed cost-based
10 benchmarks, which shall be developed to assess all
11 expenditures pursuant to such sourcing agreements covering
12 electricity generated by clean coal facilities, other than
13 the initial clean coal facility, by the procurement
14 administrator, in consultation with the Commission staff,
15 Agency staff, and the procurement monitor and shall be
16 subject to Commission review and approval.
17 A utility party to a sourcing agreement shall
18 immediately retire any emission credits that it receives
19 in connection with the electricity covered by such
20 agreement.
21 Utilities shall maintain adequate records documenting
22 the purchases under the sourcing agreement to comply with
23 this subsection (d) and shall file an accounting with the
24 load forecast that must be filed with the Agency by July 15
25 of each year, in accordance with subsection (d) of Section
26 16-111.5 of the Public Utilities Act.
HB1700 Enrolled - 440 - LRB104 08228 SPS 18278 b
1 A utility shall be deemed to have complied with the
2 clean coal portfolio standard specified in this subsection
3 (d) if the utility enters into a sourcing agreement as
4 required by this subsection (d).
5 (2) For purposes of this subsection (d), the required
6 execution of sourcing agreements with the initial clean
7 coal facility for a particular year shall be measured as a
8 percentage of the actual amount of electricity
9 (megawatt-hours) supplied by the electric utility to
10 eligible retail customers in the planning year ending
11 immediately prior to the agreement's execution. For
12 purposes of this subsection (d), the amount paid per
13 kilowatthour means the total amount paid for electric
14 service expressed on a per kilowatthour basis. For
15 purposes of this subsection (d), the total amount paid for
16 electric service includes without limitation amounts paid
17 for supply, transmission, distribution, surcharges and
18 add-on taxes.
19 Notwithstanding the requirements of this subsection
20 (d), the total amount paid under sourcing agreements with
21 clean coal facilities pursuant to the procurement plan for
22 any given year shall be reduced by an amount necessary to
23 limit the annual estimated average net increase due to the
24 costs of these resources included in the amounts paid by
25 eligible retail customers in connection with electric
26 service to:
HB1700 Enrolled - 441 - LRB104 08228 SPS 18278 b
1 (A) in 2010, no more than 0.5% of the amount paid
2 per kilowatthour by those customers during the year
3 ending May 31, 2009;
4 (B) in 2011, the greater of an additional 0.5% of
5 the amount paid per kilowatthour by those customers
6 during the year ending May 31, 2010 or 1% of the amount
7 paid per kilowatthour by those customers during the
8 year ending May 31, 2009;
9 (C) in 2012, the greater of an additional 0.5% of
10 the amount paid per kilowatthour by those customers
11 during the year ending May 31, 2011 or 1.5% of the
12 amount paid per kilowatthour by those customers during
13 the year ending May 31, 2009;
14 (D) in 2013, the greater of an additional 0.5% of
15 the amount paid per kilowatthour by those customers
16 during the year ending May 31, 2012 or 2% of the amount
17 paid per kilowatthour by those customers during the
18 year ending May 31, 2009; and
19 (E) thereafter, the total amount paid under
20 sourcing agreements with clean coal facilities
21 pursuant to the procurement plan for any single year
22 shall be reduced by an amount necessary to limit the
23 estimated average net increase due to the cost of
24 these resources included in the amounts paid by
25 eligible retail customers in connection with electric
26 service to no more than the greater of (i) 2.015% of
HB1700 Enrolled - 442 - LRB104 08228 SPS 18278 b
1 the amount paid per kilowatthour by those customers
2 during the year ending May 31, 2009 or (ii) the
3 incremental amount per kilowatthour paid for these
4 resources in 2013. These requirements may be altered
5 only as provided by statute.
6 No later than June 30, 2015, the Commission shall
7 review the limitation on the total amount paid under
8 sourcing agreements, if any, with clean coal facilities
9 pursuant to this subsection (d) and report to the General
10 Assembly its findings as to whether that limitation unduly
11 constrains the amount of electricity generated by
12 cost-effective clean coal facilities that is covered by
13 sourcing agreements.
14 (3) Initial clean coal facility. In order to promote
15 development of clean coal facilities in Illinois, each
16 electric utility subject to this Section shall execute a
17 sourcing agreement to source electricity from a proposed
18 clean coal facility in Illinois (the "initial clean coal
19 facility") that will have a nameplate capacity of at least
20 500 MW when commercial operation commences, that has a
21 final Clean Air Act permit on June 1, 2009 (the effective
22 date of Public Act 95-1027), and that will meet the
23 definition of clean coal facility in Section 1-10 of this
24 Act when commercial operation commences. The sourcing
25 agreements with this initial clean coal facility shall be
26 subject to both approval of the initial clean coal
HB1700 Enrolled - 443 - LRB104 08228 SPS 18278 b
1 facility by the General Assembly and satisfaction of the
2 requirements of paragraph (4) of this subsection (d) and
3 shall be executed within 90 days after any such approval
4 by the General Assembly. The Agency and the Commission
5 shall have authority to inspect all books and records
6 associated with the initial clean coal facility during the
7 term of such a sourcing agreement. A utility's sourcing
8 agreement for electricity produced by the initial clean
9 coal facility shall include:
10 (A) a formula contractual price (the "contract
11 price") approved pursuant to paragraph (4) of this
12 subsection (d), which shall:
13 (i) be determined using a cost of service
14 methodology employing either a level or deferred
15 capital recovery component, based on a capital
16 structure consisting of 45% equity and 55% debt,
17 and a return on equity as may be approved by the
18 Federal Energy Regulatory Commission, which in any
19 case may not exceed the lower of 11.5% or the rate
20 of return approved by the General Assembly
21 pursuant to paragraph (4) of this subsection (d);
22 and
23 (ii) provide that all miscellaneous net
24 revenue, including but not limited to net revenue
25 from the sale of emission allowances, if any,
26 substitute natural gas, if any, grants or other
HB1700 Enrolled - 444 - LRB104 08228 SPS 18278 b
1 support provided by the State of Illinois or the
2 United States Government, firm transmission
3 rights, if any, by-products produced by the
4 facility, energy or capacity derived from the
5 facility and not covered by a sourcing agreement
6 pursuant to paragraph (3) of this subsection (d)
7 or item (5) of subsection (d) of Section 16-115 of
8 the Public Utilities Act, whether generated from
9 the synthesis gas derived from coal, from SNG, or
10 from natural gas, shall be credited against the
11 revenue requirement for this initial clean coal
12 facility;
13 (B) power purchase provisions, which shall:
14 (i) provide that the utility party to such
15 sourcing agreement shall pay the contract price
16 for electricity delivered under such sourcing
17 agreement;
18 (ii) require delivery of electricity to the
19 regional transmission organization market of the
20 utility that is party to such sourcing agreement;
21 (iii) require the utility party to such
22 sourcing agreement to buy from the initial clean
23 coal facility in each hour an amount of energy
24 equal to all clean coal energy made available from
25 the initial clean coal facility during such hour
26 times a fraction, the numerator of which is such
HB1700 Enrolled - 445 - LRB104 08228 SPS 18278 b
1 utility's retail market sales of electricity
2 (expressed in kilowatthours sold) in the State
3 during the prior calendar month and the
4 denominator of which is the total retail market
5 sales of electricity (expressed in kilowatthours
6 sold) in the State by utilities during such prior
7 month and the sales of electricity (expressed in
8 kilowatthours sold) in the State by alternative
9 retail electric suppliers during such prior month
10 that are subject to the requirements of this
11 subsection (d) and paragraph (5) of subsection (d)
12 of Section 16-115 of the Public Utilities Act,
13 provided that the amount purchased by the utility
14 in any year will be limited by paragraph (2) of
15 this subsection (d); and
16 (iv) be considered pre-existing contracts in
17 such utility's procurement plans for eligible
18 retail customers;
19 (C) contract for differences provisions, which
20 shall:
21 (i) require the utility party to such sourcing
22 agreement to contract with the initial clean coal
23 facility in each hour with respect to an amount of
24 energy equal to all clean coal energy made
25 available from the initial clean coal facility
26 during such hour times a fraction, the numerator
HB1700 Enrolled - 446 - LRB104 08228 SPS 18278 b
1 of which is such utility's retail market sales of
2 electricity (expressed in kilowatthours sold) in
3 the utility's service territory in the State
4 during the prior calendar month and the
5 denominator of which is the total retail market
6 sales of electricity (expressed in kilowatthours
7 sold) in the State by utilities during such prior
8 month and the sales of electricity (expressed in
9 kilowatthours sold) in the State by alternative
10 retail electric suppliers during such prior month
11 that are subject to the requirements of this
12 subsection (d) and paragraph (5) of subsection (d)
13 of Section 16-115 of the Public Utilities Act,
14 provided that the amount paid by the utility in
15 any year will be limited by paragraph (2) of this
16 subsection (d);
17 (ii) provide that the utility's payment
18 obligation in respect of the quantity of
19 electricity determined pursuant to the preceding
20 clause (i) shall be limited to an amount equal to
21 (1) the difference between the contract price
22 determined pursuant to subparagraph (A) of
23 paragraph (3) of this subsection (d) and the
24 day-ahead price for electricity delivered to the
25 regional transmission organization market of the
26 utility that is party to such sourcing agreement
HB1700 Enrolled - 447 - LRB104 08228 SPS 18278 b
1 (or any successor delivery point at which such
2 utility's supply obligations are financially
3 settled on an hourly basis) (the "reference
4 price") on the day preceding the day on which the
5 electricity is delivered to the initial clean coal
6 facility busbar, multiplied by (2) the quantity of
7 electricity determined pursuant to the preceding
8 clause (i); and
9 (iii) not require the utility to take physical
10 delivery of the electricity produced by the
11 facility;
12 (D) general provisions, which shall:
13 (i) specify a term of no more than 30 years,
14 commencing on the commercial operation date of the
15 facility;
16 (ii) provide that utilities shall maintain
17 adequate records documenting purchases under the
18 sourcing agreements entered into to comply with
19 this subsection (d) and shall file an accounting
20 with the load forecast that must be filed with the
21 Agency by July 15 of each year, in accordance with
22 subsection (d) of Section 16-111.5 of the Public
23 Utilities Act;
24 (iii) provide that all costs associated with
25 the initial clean coal facility will be
26 periodically reported to the Federal Energy
HB1700 Enrolled - 448 - LRB104 08228 SPS 18278 b
1 Regulatory Commission and to purchasers in
2 accordance with applicable laws governing
3 cost-based wholesale power contracts;
4 (iv) permit the Illinois Power Agency to
5 assume ownership of the initial clean coal
6 facility, without monetary consideration and
7 otherwise on reasonable terms acceptable to the
8 Agency, if the Agency so requests no less than 3
9 years prior to the end of the stated contract
10 term;
11 (v) require the owner of the initial clean
12 coal facility to provide documentation to the
13 Commission each year, starting in the facility's
14 first year of commercial operation, accurately
15 reporting the quantity of carbon emissions from
16 the facility that have been captured and
17 sequestered and report any quantities of carbon
18 released from the site or sites at which carbon
19 emissions were sequestered in prior years, based
20 on continuous monitoring of such sites. If, in any
21 year after the first year of commercial operation,
22 the owner of the facility fails to demonstrate
23 that the initial clean coal facility captured and
24 sequestered at least 50% of the total carbon
25 emissions that the facility would otherwise emit
26 or that sequestration of emissions from prior
HB1700 Enrolled - 449 - LRB104 08228 SPS 18278 b
1 years has failed, resulting in the release of
2 carbon dioxide into the atmosphere, the owner of
3 the facility must offset excess emissions. Any
4 such carbon offsets must be permanent, additional,
5 verifiable, real, located within the State of
6 Illinois, and legally and practicably enforceable.
7 The cost of such offsets for the facility that are
8 not recoverable shall not exceed $15 million in
9 any given year. No costs of any such purchases of
10 carbon offsets may be recovered from a utility or
11 its customers. All carbon offsets purchased for
12 this purpose and any carbon emission credits
13 associated with sequestration of carbon from the
14 facility must be permanently retired. The initial
15 clean coal facility shall not forfeit its
16 designation as a clean coal facility if the
17 facility fails to fully comply with the applicable
18 carbon sequestration requirements in any given
19 year, provided the requisite offsets are
20 purchased. However, the Attorney General, on
21 behalf of the People of the State of Illinois, may
22 specifically enforce the facility's sequestration
23 requirement and the other terms of this contract
24 provision. Compliance with the sequestration
25 requirements and offset purchase requirements
26 specified in paragraph (3) of this subsection (d)
HB1700 Enrolled - 450 - LRB104 08228 SPS 18278 b
1 shall be reviewed annually by an independent
2 expert retained by the owner of the initial clean
3 coal facility, with the advance written approval
4 of the Attorney General. The Commission may, in
5 the course of the review specified in item (vii),
6 reduce the allowable return on equity for the
7 facility if the facility willfully fails to comply
8 with the carbon capture and sequestration
9 requirements set forth in this item (v);
10 (vi) include limits on, and accordingly
11 provide for modification of, the amount the
12 utility is required to source under the sourcing
13 agreement consistent with paragraph (2) of this
14 subsection (d);
15 (vii) require Commission review: (1) to
16 determine the justness, reasonableness, and
17 prudence of the inputs to the formula referenced
18 in subparagraphs (A)(i) through (A)(iii) of
19 paragraph (3) of this subsection (d), prior to an
20 adjustment in those inputs including, without
21 limitation, the capital structure and return on
22 equity, fuel costs, and other operations and
23 maintenance costs and (2) to approve the costs to
24 be passed through to customers under the sourcing
25 agreement by which the utility satisfies its
26 statutory obligations. Commission review shall
HB1700 Enrolled - 451 - LRB104 08228 SPS 18278 b
1 occur no less than every 3 years, regardless of
2 whether any adjustments have been proposed, and
3 shall be completed within 9 months;
4 (viii) limit the utility's obligation to such
5 amount as the utility is allowed to recover
6 through tariffs filed with the Commission,
7 provided that neither the clean coal facility nor
8 the utility waives any right to assert federal
9 pre-emption or any other argument in response to a
10 purported disallowance of recovery costs;
11 (ix) limit the utility's or alternative retail
12 electric supplier's obligation to incur any
13 liability until such time as the facility is in
14 commercial operation and generating power and
15 energy and such power and energy is being
16 delivered to the facility busbar;
17 (x) provide that the owner or owners of the
18 initial clean coal facility, which is the
19 counterparty to such sourcing agreement, shall
20 have the right from time to time to elect whether
21 the obligations of the utility party thereto shall
22 be governed by the power purchase provisions or
23 the contract for differences provisions;
24 (xi) append documentation showing that the
25 formula rate and contract, insofar as they relate
26 to the power purchase provisions, have been
HB1700 Enrolled - 452 - LRB104 08228 SPS 18278 b
1 approved by the Federal Energy Regulatory
2 Commission pursuant to Section 205 of the Federal
3 Power Act;
4 (xii) provide that any changes to the terms of
5 the contract, insofar as such changes relate to
6 the power purchase provisions, are subject to
7 review under the public interest standard applied
8 by the Federal Energy Regulatory Commission
9 pursuant to Sections 205 and 206 of the Federal
10 Power Act; and
11 (xiii) conform with customary lender
12 requirements in power purchase agreements used as
13 the basis for financing non-utility generators.
14 (4) Effective date of sourcing agreements with the
15 initial clean coal facility. Any proposed sourcing
16 agreement with the initial clean coal facility shall not
17 become effective unless the following reports are prepared
18 and submitted and authorizations and approvals obtained:
19 (i) Facility cost report. The owner of the initial
20 clean coal facility shall submit to the Commission,
21 the Agency, and the General Assembly a front-end
22 engineering and design study, a facility cost report,
23 method of financing (including but not limited to
24 structure and associated costs), and an operating and
25 maintenance cost quote for the facility (collectively
26 "facility cost report"), which shall be prepared in
HB1700 Enrolled - 453 - LRB104 08228 SPS 18278 b
1 accordance with the requirements of this paragraph (4)
2 of subsection (d) of this Section, and shall provide
3 the Commission and the Agency access to the work
4 papers, relied upon documents, and any other backup
5 documentation related to the facility cost report.
6 (ii) Commission report. Within 6 months following
7 receipt of the facility cost report, the Commission,
8 in consultation with the Agency, shall submit a report
9 to the General Assembly setting forth its analysis of
10 the facility cost report. Such report shall include,
11 but not be limited to, a comparison of the costs
12 associated with electricity generated by the initial
13 clean coal facility to the costs associated with
14 electricity generated by other types of generation
15 facilities, an analysis of the rate impacts on
16 residential and small business customers over the life
17 of the sourcing agreements, and an analysis of the
18 likelihood that the initial clean coal facility will
19 commence commercial operation by and be delivering
20 power to the facility's busbar by 2016. To assist in
21 the preparation of its report, the Commission, in
22 consultation with the Agency, may hire one or more
23 experts or consultants, the costs of which shall be
24 paid for by the owner of the initial clean coal
25 facility. The Commission and Agency may begin the
26 process of selecting such experts or consultants prior
HB1700 Enrolled - 454 - LRB104 08228 SPS 18278 b
1 to receipt of the facility cost report.
2 (iii) General Assembly approval. The proposed
3 sourcing agreements shall not take effect unless,
4 based on the facility cost report and the Commission's
5 report, the General Assembly enacts authorizing
6 legislation approving (A) the projected price, stated
7 in cents per kilowatthour, to be charged for
8 electricity generated by the initial clean coal
9 facility, (B) the projected impact on residential and
10 small business customers' bills over the life of the
11 sourcing agreements, and (C) the maximum allowable
12 return on equity for the project; and
13 (iv) Commission review. If the General Assembly
14 enacts authorizing legislation pursuant to
15 subparagraph (iii) approving a sourcing agreement, the
16 Commission shall, within 90 days of such enactment,
17 complete a review of such sourcing agreement. During
18 such time period, the Commission shall implement any
19 directive of the General Assembly, resolve any
20 disputes between the parties to the sourcing agreement
21 concerning the terms of such agreement, approve the
22 form of such agreement, and issue an order finding
23 that the sourcing agreement is prudent and reasonable.
24 The facility cost report shall be prepared as follows:
25 (A) The facility cost report shall be prepared by
26 duly licensed engineering and construction firms
HB1700 Enrolled - 455 - LRB104 08228 SPS 18278 b
1 detailing the estimated capital costs payable to one
2 or more contractors or suppliers for the engineering,
3 procurement and construction of the components
4 comprising the initial clean coal facility and the
5 estimated costs of operation and maintenance of the
6 facility. The facility cost report shall include:
7 (i) an estimate of the capital cost of the
8 core plant based on one or more front end
9 engineering and design studies for the
10 gasification island and related facilities. The
11 core plant shall include all civil, structural,
12 mechanical, electrical, control, and safety
13 systems.
14 (ii) an estimate of the capital cost of the
15 balance of the plant, including any capital costs
16 associated with sequestration of carbon dioxide
17 emissions and all interconnects and interfaces
18 required to operate the facility, such as
19 transmission of electricity, construction or
20 backfeed power supply, pipelines to transport
21 substitute natural gas or carbon dioxide, potable
22 water supply, natural gas supply, water supply,
23 water discharge, landfill, access roads, and coal
24 delivery.
25 The quoted construction costs shall be expressed
26 in nominal dollars as of the date that the quote is
HB1700 Enrolled - 456 - LRB104 08228 SPS 18278 b
1 prepared and shall include capitalized financing costs
2 during construction, taxes, insurance, and other
3 owner's costs, and an assumed escalation in materials
4 and labor beyond the date as of which the construction
5 cost quote is expressed.
6 (B) The front end engineering and design study for
7 the gasification island and the cost study for the
8 balance of plant shall include sufficient design work
9 to permit quantification of major categories of
10 materials, commodities and labor hours, and receipt of
11 quotes from vendors of major equipment required to
12 construct and operate the clean coal facility.
13 (C) The facility cost report shall also include an
14 operating and maintenance cost quote that will provide
15 the estimated cost of delivered fuel, personnel,
16 maintenance contracts, chemicals, catalysts,
17 consumables, spares, and other fixed and variable
18 operations and maintenance costs. The delivered fuel
19 cost estimate will be provided by a recognized third
20 party expert or experts in the fuel and transportation
21 industries. The balance of the operating and
22 maintenance cost quote, excluding delivered fuel
23 costs, will be developed based on the inputs provided
24 by duly licensed engineering and construction firms
25 performing the construction cost quote, potential
26 vendors under long-term service agreements and plant
HB1700 Enrolled - 457 - LRB104 08228 SPS 18278 b
1 operating agreements, or recognized third party plant
2 operator or operators.
3 The operating and maintenance cost quote
4 (including the cost of the front end engineering and
5 design study) shall be expressed in nominal dollars as
6 of the date that the quote is prepared and shall
7 include taxes, insurance, and other owner's costs, and
8 an assumed escalation in materials and labor beyond
9 the date as of which the operating and maintenance
10 cost quote is expressed.
11 (D) The facility cost report shall also include an
12 analysis of the initial clean coal facility's ability
13 to deliver power and energy into the applicable
14 regional transmission organization markets and an
15 analysis of the expected capacity factor for the
16 initial clean coal facility.
17 (E) Amounts paid to third parties unrelated to the
18 owner or owners of the initial clean coal facility to
19 prepare the core plant construction cost quote,
20 including the front end engineering and design study,
21 and the operating and maintenance cost quote will be
22 reimbursed through Coal Development Bonds.
23 (5) Re-powering and retrofitting coal-fired power
24 plants previously owned by Illinois utilities to qualify
25 as clean coal facilities. During the 2009 procurement
26 planning process and thereafter, the Agency and the
HB1700 Enrolled - 458 - LRB104 08228 SPS 18278 b
1 Commission shall consider sourcing agreements covering
2 electricity generated by power plants that were previously
3 owned by Illinois utilities and that have been or will be
4 converted into clean coal facilities, as defined by
5 Section 1-10 of this Act. Pursuant to such procurement
6 planning process, the owners of such facilities may
7 propose to the Agency sourcing agreements with utilities
8 and alternative retail electric suppliers required to
9 comply with subsection (d) of this Section and item (5) of
10 subsection (d) of Section 16-115 of the Public Utilities
11 Act, covering electricity generated by such facilities. In
12 the case of sourcing agreements that are power purchase
13 agreements, the contract price for electricity sales shall
14 be established on a cost of service basis. In the case of
15 sourcing agreements that are contracts for differences,
16 the contract price from which the reference price is
17 subtracted shall be established on a cost of service
18 basis. The Agency and the Commission may approve any such
19 utility sourcing agreements that do not exceed cost-based
20 benchmarks developed by the procurement administrator, in
21 consultation with the Commission staff, Agency staff and
22 the procurement monitor, subject to Commission review and
23 approval. The Commission shall have authority to inspect
24 all books and records associated with these clean coal
25 facilities during the term of any such contract.
26 (6) Costs incurred under this subsection (d) or
HB1700 Enrolled - 459 - LRB104 08228 SPS 18278 b
1 pursuant to a contract entered into under this subsection
2 (d) shall be deemed prudently incurred and reasonable in
3 amount and the electric utility shall be entitled to full
4 cost recovery pursuant to the tariffs filed with the
5 Commission.
6 (d-5) Zero emission standard.
7 (1) Beginning with the delivery year commencing on
8 June 1, 2017, the Agency shall, for electric utilities
9 that serve at least 100,000 retail customers in this
10 State, procure contracts with zero emission facilities
11 that are reasonably capable of generating cost-effective
12 zero emission credits in an amount approximately equal to
13 16% of the actual amount of electricity delivered by each
14 electric utility to retail customers in the State during
15 calendar year 2014. For an electric utility serving fewer
16 than 100,000 retail customers in this State that
17 requested, under Section 16-111.5 of the Public Utilities
18 Act, that the Agency procure power and energy for all or a
19 portion of the utility's Illinois load for the delivery
20 year commencing June 1, 2016, the Agency shall procure
21 contracts with zero emission facilities that are
22 reasonably capable of generating cost-effective zero
23 emission credits in an amount approximately equal to 16%
24 of the portion of power and energy to be procured by the
25 Agency for the utility. The duration of the contracts
26 procured under this subsection (d-5) shall be for a term
HB1700 Enrolled - 460 - LRB104 08228 SPS 18278 b
1 of 10 years ending May 31, 2027. The quantity of zero
2 emission credits to be procured under the contracts shall
3 be all of the zero emission credits generated by the zero
4 emission facility in each delivery year; however, if the
5 zero emission facility is owned by more than one entity,
6 then the quantity of zero emission credits to be procured
7 under the contracts shall be the amount of zero emission
8 credits that are generated from the portion of the zero
9 emission facility that is owned by the winning supplier.
10 The 16% value identified in this paragraph (1) is the
11 average of the percentage targets in subparagraph (B) of
12 paragraph (1) of subsection (c) of this Section for the 5
13 delivery years beginning June 1, 2017.
14 The procurement process shall be subject to the
15 following provisions:
16 (A) Those zero emission facilities that intend to
17 participate in the procurement shall submit to the
18 Agency the following eligibility information for each
19 zero emission facility on or before the date
20 established by the Agency:
21 (i) the in-service date and remaining useful
22 life of the zero emission facility;
23 (ii) the amount of power generated annually
24 for each of the years 2005 through 2015, and the
25 projected zero emission credits to be generated
26 over the remaining useful life of the zero
HB1700 Enrolled - 461 - LRB104 08228 SPS 18278 b
1 emission facility, which shall be used to
2 determine the capability of each facility;
3 (iii) the annual zero emission facility cost
4 projections, expressed on a per megawatthour
5 basis, over the next 6 delivery years, which shall
6 include the following: operation and maintenance
7 expenses; fully allocated overhead costs, which
8 shall be allocated using the methodology developed
9 by the Institute for Nuclear Power Operations;
10 fuel expenditures; non-fuel capital expenditures;
11 spent fuel expenditures; a return on working
12 capital; the cost of operational and market risks
13 that could be avoided by ceasing operation; and
14 any other costs necessary for continued
15 operations, provided that "necessary" means, for
16 purposes of this item (iii), that the costs could
17 reasonably be avoided only by ceasing operations
18 of the zero emission facility; and
19 (iv) a commitment to continue operating, for
20 the duration of the contract or contracts executed
21 under the procurement held under this subsection
22 (d-5), the zero emission facility that produces
23 the zero emission credits to be procured in the
24 procurement.
25 The information described in item (iii) of this
26 subparagraph (A) may be submitted on a confidential
HB1700 Enrolled - 462 - LRB104 08228 SPS 18278 b
1 basis and shall be treated and maintained by the
2 Agency, the procurement administrator, and the
3 Commission as confidential and proprietary and exempt
4 from disclosure under subparagraphs (a) and (g) of
5 paragraph (1) of Section 7 of the Freedom of
6 Information Act. The Office of Attorney General shall
7 have access to, and maintain the confidentiality of,
8 such information pursuant to Section 6.5 of the
9 Attorney General Act.
10 (B) The price for each zero emission credit
11 procured under this subsection (d-5) for each delivery
12 year shall be in an amount that equals the Social Cost
13 of Carbon, expressed on a price per megawatthour
14 basis. However, to ensure that the procurement remains
15 affordable to retail customers in this State if
16 electricity prices increase, the price in an
17 applicable delivery year shall be reduced below the
18 Social Cost of Carbon by the amount ("Price
19 Adjustment") by which the market price index for the
20 applicable delivery year exceeds the baseline market
21 price index for the consecutive 12-month period ending
22 May 31, 2016. If the Price Adjustment is greater than
23 or equal to the Social Cost of Carbon in an applicable
24 delivery year, then no payments shall be due in that
25 delivery year. The components of this calculation are
26 defined as follows:
HB1700 Enrolled - 463 - LRB104 08228 SPS 18278 b
1 (i) Social Cost of Carbon: The Social Cost of
2 Carbon is $16.50 per megawatthour, which is based
3 on the U.S. Interagency Working Group on Social
4 Cost of Carbon's price in the August 2016
5 Technical Update using a 3% discount rate,
6 adjusted for inflation for each year of the
7 program. Beginning with the delivery year
8 commencing June 1, 2023, the price per
9 megawatthour shall increase by $1 per
10 megawatthour, and continue to increase by an
11 additional $1 per megawatthour each delivery year
12 thereafter.
13 (ii) Baseline market price index: The baseline
14 market price index for the consecutive 12-month
15 period ending May 31, 2016 is $31.40 per
16 megawatthour, which is based on the sum of (aa)
17 the average day-ahead energy price across all
18 hours of such 12-month period at the PJM
19 Interconnection LLC Northern Illinois Hub, (bb)
20 50% multiplied by the Base Residual Auction, or
21 its successor, capacity price for the rest of the
22 RTO zone group determined by PJM Interconnection
23 LLC, divided by 24 hours per day, and (cc) 50%
24 multiplied by the Planning Resource Auction, or
25 its successor, capacity price for Zone 4
26 determined by the Midcontinent Independent System
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1 Operator, Inc., divided by 24 hours per day.
2 (iii) Market price index: The market price
3 index for a delivery year shall be the sum of
4 projected energy prices and projected capacity
5 prices determined as follows:
6 (aa) Projected energy prices: the
7 projected energy prices for the applicable
8 delivery year shall be calculated once for the
9 year using the forward market price for the
10 PJM Interconnection, LLC Northern Illinois
11 Hub. The forward market price shall be
12 calculated as follows: the energy forward
13 prices for each month of the applicable
14 delivery year averaged for each trade date
15 during the calendar year immediately preceding
16 that delivery year to produce a single energy
17 forward price for the delivery year. The
18 forward market price calculation shall use
19 data published by the Intercontinental
20 Exchange, or its successor.
21 (bb) Projected capacity prices:
22 (I) For the delivery years commencing
23 June 1, 2017, June 1, 2018, and June 1,
24 2019, the projected capacity price shall
25 be equal to the sum of (1) 50% multiplied
26 by the Base Residual Auction, or its
HB1700 Enrolled - 465 - LRB104 08228 SPS 18278 b
1 successor, price for the rest of the RTO
2 zone group as determined by PJM
3 Interconnection LLC, divided by 24 hours
4 per day and, (2) 50% multiplied by the
5 resource auction price determined in the
6 resource auction administered by the
7 Midcontinent Independent System Operator,
8 Inc., in which the largest percentage of
9 load cleared for Local Resource Zone 4,
10 divided by 24 hours per day, and where
11 such price is determined by the
12 Midcontinent Independent System Operator,
13 Inc.
14
15 (II) For the delivery year commencing
16 June 1, 2020, and each year thereafter,
17 the projected capacity price shall be
18 equal to the sum of (1) 50% multiplied by
19 the Base Residual Auction, or its
20 successor, price for the ComEd zone as
21 determined by PJM Interconnection LLC,
22 divided by 24 hours per day, and (2) 50%
23 multiplied by the resource auction price
24 determined in the resource auction
25 administered by the Midcontinent
26 Independent System Operator, Inc., in
which the largest percentage of load
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1 cleared for Local Resource Zone 4, divided
2 by 24 hours per day, and where such price
3 is determined by the Midcontinent
4 Independent System Operator, Inc.
5 For purposes of this subsection (d-5):
6 "Rest of the RTO" and "ComEd Zone" shall have
7 the meaning ascribed to them by PJM
8 Interconnection, LLC.
9 "RTO" means regional transmission
10 organization.
11 (C) No later than 45 days after June 1, 2017 (the
12 effective date of Public Act 99-906), the Agency shall
13 publish its proposed zero emission standard
14 procurement plan. The plan shall be consistent with
15 the provisions of this paragraph (1) and shall provide
16 that winning bids shall be selected based on public
17 interest criteria that include, but are not limited
18 to, minimizing carbon dioxide emissions that result
19 from electricity consumed in Illinois and minimizing
20 sulfur dioxide, nitrogen oxide, and particulate matter
21 emissions that adversely affect the citizens of this
22 State. In particular, the selection of winning bids
23 shall take into account the incremental environmental
24 benefits resulting from the procurement, such as any
25 existing environmental benefits that are preserved by
26 the procurements held under Public Act 99-906 and
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1 would cease to exist if the procurements were not
2 held, including the preservation of zero emission
3 facilities. The plan shall also describe in detail how
4 each public interest factor shall be considered and
5 weighted in the bid selection process to ensure that
6 the public interest criteria are applied to the
7 procurement and given full effect.
8 For purposes of developing the plan, the Agency
9 shall consider any reports issued by a State agency,
10 board, or commission under House Resolution 1146 of
11 the 98th General Assembly and paragraph (4) of
12 subsection (d) of this Section, as well as publicly
13 available analyses and studies performed by or for
14 regional transmission organizations that serve the
15 State and their independent market monitors.
16 Upon publishing of the zero emission standard
17 procurement plan, copies of the plan shall be posted
18 and made publicly available on the Agency's website.
19 All interested parties shall have 10 days following
20 the date of posting to provide comment to the Agency on
21 the plan. All comments shall be posted to the Agency's
22 website. Following the end of the comment period, but
23 no more than 60 days later than June 1, 2017 (the
24 effective date of Public Act 99-906), the Agency shall
25 revise the plan as necessary based on the comments
26 received and file its zero emission standard
HB1700 Enrolled - 468 - LRB104 08228 SPS 18278 b
1 procurement plan with the Commission.
2 If the Commission determines that the plan will
3 result in the procurement of cost-effective zero
4 emission credits, then the Commission shall, after
5 notice and hearing, but no later than 45 days after the
6 Agency filed the plan, approve the plan or approve
7 with modification. For purposes of this subsection
8 (d-5), "cost effective" means the projected costs of
9 procuring zero emission credits from zero emission
10 facilities do not cause the limit stated in paragraph
11 (2) of this subsection to be exceeded.
12 (C-5) As part of the Commission's review and
13 acceptance or rejection of the procurement results,
14 the Commission shall, in its public notice of
15 successful bidders:
16 (i) identify how the winning bids satisfy the
17 public interest criteria described in subparagraph
18 (C) of this paragraph (1) of minimizing carbon
19 dioxide emissions that result from electricity
20 consumed in Illinois and minimizing sulfur
21 dioxide, nitrogen oxide, and particulate matter
22 emissions that adversely affect the citizens of
23 this State;
24 (ii) specifically address how the selection of
25 winning bids takes into account the incremental
26 environmental benefits resulting from the
HB1700 Enrolled - 469 - LRB104 08228 SPS 18278 b
1 procurement, including any existing environmental
2 benefits that are preserved by the procurements
3 held under Public Act 99-906 and would have ceased
4 to exist if the procurements had not been held,
5 such as the preservation of zero emission
6 facilities;
7 (iii) quantify the environmental benefit of
8 preserving the resources identified in item (ii)
9 of this subparagraph (C-5), including the
10 following:
11 (aa) the value of avoided greenhouse gas
12 emissions measured as the product of the zero
13 emission facilities' output over the contract
14 term multiplied by the U.S. Environmental
15 Protection Agency eGrid subregion carbon
16 dioxide emission rate and the U.S. Interagency
17 Working Group on Social Cost of Carbon's price
18 in the August 2016 Technical Update using a 3%
19 discount rate, adjusted for inflation for each
20 delivery year; and
21 (bb) the costs of replacement with other
22 zero carbon dioxide resources, including wind
23 and photovoltaic, based upon the simple
24 average of the following:
25 (I) the price, or if there is more
26 than one price, the average of the prices,
HB1700 Enrolled - 470 - LRB104 08228 SPS 18278 b
1 paid for renewable energy credits from new
2 utility-scale wind projects in the
3 procurement events specified in item (i)
4 of subparagraph (G) of paragraph (1) of
5 subsection (c) of this Section; and
6 (II) the price, or if there is more
7 than one price, the average of the prices,
8 paid for renewable energy credits from new
9 utility-scale solar projects and
10 brownfield site photovoltaic projects in
11 the procurement events specified in item
12 (ii) of subparagraph (G) of paragraph (1)
13 of subsection (c) of this Section and,
14 after January 1, 2015, renewable energy
15 credits from photovoltaic distributed
16 generation projects in procurement events
17 held under subsection (c) of this Section.
18 Each utility shall enter into binding contractual
19 arrangements with the winning suppliers.
20 The procurement described in this subsection
21 (d-5), including, but not limited to, the execution of
22 all contracts procured, shall be completed no later
23 than May 10, 2017. Based on the effective date of
24 Public Act 99-906, the Agency and Commission may, as
25 appropriate, modify the various dates and timelines
26 under this subparagraph and subparagraphs (C) and (D)
HB1700 Enrolled - 471 - LRB104 08228 SPS 18278 b
1 of this paragraph (1). The procurement and plan
2 approval processes required by this subsection (d-5)
3 shall be conducted in conjunction with the procurement
4 and plan approval processes required by subsection (c)
5 of this Section and Section 16-111.5 of the Public
6 Utilities Act, to the extent practicable.
7 Notwithstanding whether a procurement event is
8 conducted under Section 16-111.5 of the Public
9 Utilities Act, the Agency shall immediately initiate a
10 procurement process on June 1, 2017 (the effective
11 date of Public Act 99-906).
12 (D) Following the procurement event described in
13 this paragraph (1) and consistent with subparagraph
14 (B) of this paragraph (1), the Agency shall calculate
15 the payments to be made under each contract for the
16 next delivery year based on the market price index for
17 that delivery year. The Agency shall publish the
18 payment calculations no later than May 25, 2017 and
19 every May 25 thereafter.
20 (E) Notwithstanding the requirements of this
21 subsection (d-5), the contracts executed under this
22 subsection (d-5) shall provide that the zero emission
23 facility may, as applicable, suspend or terminate
24 performance under the contracts in the following
25 instances:
26 (i) A zero emission facility shall be excused
HB1700 Enrolled - 472 - LRB104 08228 SPS 18278 b
1 from its performance under the contract for any
2 cause beyond the control of the resource,
3 including, but not restricted to, acts of God,
4 flood, drought, earthquake, storm, fire,
5 lightning, epidemic, war, riot, civil disturbance
6 or disobedience, labor dispute, labor or material
7 shortage, sabotage, acts of public enemy,
8 explosions, orders, regulations or restrictions
9 imposed by governmental, military, or lawfully
10 established civilian authorities, which, in any of
11 the foregoing cases, by exercise of commercially
12 reasonable efforts the zero emission facility
13 could not reasonably have been expected to avoid,
14 and which, by the exercise of commercially
15 reasonable efforts, it has been unable to
16 overcome. In such event, the zero emission
17 facility shall be excused from performance for the
18 duration of the event, including, but not limited
19 to, delivery of zero emission credits, and no
20 payment shall be due to the zero emission facility
21 during the duration of the event.
22 (ii) A zero emission facility shall be
23 permitted to terminate the contract if legislation
24 is enacted into law by the General Assembly that
25 imposes or authorizes a new tax, special
26 assessment, or fee on the generation of
HB1700 Enrolled - 473 - LRB104 08228 SPS 18278 b
1 electricity, the ownership or leasehold of a
2 generating unit, or the privilege or occupation of
3 such generation, ownership, or leasehold of
4 generation units by a zero emission facility.
5 However, the provisions of this item (ii) do not
6 apply to any generally applicable tax, special
7 assessment or fee, or requirements imposed by
8 federal law.
9 (iii) A zero emission facility shall be
10 permitted to terminate the contract in the event
11 that the resource requires capital expenditures in
12 excess of $40,000,000 that were neither known nor
13 reasonably foreseeable at the time it executed the
14 contract and that a prudent owner or operator of
15 such resource would not undertake.
16 (iv) A zero emission facility shall be
17 permitted to terminate the contract in the event
18 the Nuclear Regulatory Commission terminates the
19 resource's license.
20 (F) If the zero emission facility elects to
21 terminate a contract under subparagraph (E) of this
22 paragraph (1), then the Commission shall reopen the
23 docket in which the Commission approved the zero
24 emission standard procurement plan under subparagraph
25 (C) of this paragraph (1) and, after notice and
26 hearing, enter an order acknowledging the contract
HB1700 Enrolled - 474 - LRB104 08228 SPS 18278 b
1 termination election if such termination is consistent
2 with the provisions of this subsection (d-5).
3 (2) For purposes of this subsection (d-5), the amount
4 paid per kilowatthour means the total amount paid for
5 electric service expressed on a per kilowatthour basis.
6 For purposes of this subsection (d-5), the total amount
7 paid for electric service includes, without limitation,
8 amounts paid for supply, transmission, distribution,
9 surcharges, and add-on taxes.
10 Notwithstanding the requirements of this subsection
11 (d-5), the contracts executed under this subsection (d-5)
12 shall provide that the total of zero emission credits
13 procured under a procurement plan shall be subject to the
14 limitations of this paragraph (2). For each delivery year,
15 the contractual volume receiving payments in such year
16 shall be reduced for all retail customers based on the
17 amount necessary to limit the net increase that delivery
18 year to the costs of those credits included in the amounts
19 paid by eligible retail customers in connection with
20 electric service to no more than 1.65% of the amount paid
21 per kilowatthour by eligible retail customers during the
22 year ending May 31, 2009. The result of this computation
23 shall apply to and reduce the procurement for all retail
24 customers, and all those customers shall pay the same
25 single, uniform cents per kilowatthour charge under
26 subsection (k) of Section 16-108 of the Public Utilities
HB1700 Enrolled - 475 - LRB104 08228 SPS 18278 b
1 Act. To arrive at a maximum dollar amount of zero emission
2 credits to be paid for the particular delivery year, the
3 resulting per kilowatthour amount shall be applied to the
4 actual amount of kilowatthours of electricity delivered by
5 the electric utility in the delivery year immediately
6 prior to the procurement, to all retail customers in its
7 service territory. Unpaid contractual volume for any
8 delivery year shall be paid in any subsequent delivery
9 year in which such payments can be made without exceeding
10 the amount specified in this paragraph (2). The
11 calculations required by this paragraph (2) shall be made
12 only once for each procurement plan year. Once the
13 determination as to the amount of zero emission credits to
14 be paid is made based on the calculations set forth in this
15 paragraph (2), no subsequent rate impact determinations
16 shall be made and no adjustments to those contract amounts
17 shall be allowed. All costs incurred under those contracts
18 and in implementing this subsection (d-5) shall be
19 recovered by the electric utility as provided in this
20 Section.
21 No later than June 30, 2019, the Commission shall
22 review the limitation on the amount of zero emission
23 credits procured under this subsection (d-5) and report to
24 the General Assembly its findings as to whether that
25 limitation unduly constrains the procurement of
26 cost-effective zero emission credits.
HB1700 Enrolled - 476 - LRB104 08228 SPS 18278 b
1 (3) Six years after the execution of a contract under
2 this subsection (d-5), the Agency shall determine whether
3 the actual zero emission credit payments received by the
4 supplier over the 6-year period exceed the Average ZEC
5 Payment. In addition, at the end of the term of a contract
6 executed under this subsection (d-5), or at the time, if
7 any, a zero emission facility's contract is terminated
8 under subparagraph (E) of paragraph (1) of this subsection
9 (d-5), then the Agency shall determine whether the actual
10 zero emission credit payments received by the supplier
11 over the term of the contract exceed the Average ZEC
12 Payment, after taking into account any amounts previously
13 credited back to the utility under this paragraph (3). If
14 the Agency determines that the actual zero emission credit
15 payments received by the supplier over the relevant period
16 exceed the Average ZEC Payment, then the supplier shall
17 credit the difference back to the utility. The amount of
18 the credit shall be remitted to the applicable electric
19 utility no later than 120 days after the Agency's
20 determination, which the utility shall reflect as a credit
21 on its retail customer bills as soon as practicable;
22 however, the credit remitted to the utility shall not
23 exceed the total amount of payments received by the
24 facility under its contract.
25 For purposes of this Section, the Average ZEC Payment
26 shall be calculated by multiplying the quantity of zero
HB1700 Enrolled - 477 - LRB104 08228 SPS 18278 b
1 emission credits delivered under the contract times the
2 average contract price. The average contract price shall
3 be determined by subtracting the amount calculated under
4 subparagraph (B) of this paragraph (3) from the amount
5 calculated under subparagraph (A) of this paragraph (3),
6 as follows:
7 (A) The average of the Social Cost of Carbon, as
8 defined in subparagraph (B) of paragraph (1) of this
9 subsection (d-5), during the term of the contract.
10 (B) The average of the market price indices, as
11 defined in subparagraph (B) of paragraph (1) of this
12 subsection (d-5), during the term of the contract,
13 minus the baseline market price index, as defined in
14 subparagraph (B) of paragraph (1) of this subsection
15 (d-5).
16 If the subtraction yields a negative number, then the
17 Average ZEC Payment shall be zero.
18 (4) Cost-effective zero emission credits procured from
19 zero emission facilities shall satisfy the applicable
20 definitions set forth in Section 1-10 of this Act.
21 (5) The electric utility shall retire all zero
22 emission credits used to comply with the requirements of
23 this subsection (d-5).
24 (6) Electric utilities shall be entitled to recover
25 all of the costs associated with the procurement of zero
26 emission credits through an automatic adjustment clause
HB1700 Enrolled - 478 - LRB104 08228 SPS 18278 b
1 tariff in accordance with subsection (k) and (m) of
2 Section 16-108 of the Public Utilities Act, and the
3 contracts executed under this subsection (d-5) shall
4 provide that the utilities' payment obligations under such
5 contracts shall be reduced if an adjustment is required
6 under subsection (m) of Section 16-108 of the Public
7 Utilities Act.
8 (7) This subsection (d-5) shall become inoperative on
9 January 1, 2028.
10 (d-10) Nuclear Plant Assistance; carbon mitigation
11 credits.
12 (1) The General Assembly finds:
13 (A) The health, welfare, and prosperity of all
14 Illinois citizens require that the State of Illinois act
15 to avoid and not increase carbon emissions from electric
16 generation sources while continuing to ensure affordable,
17 stable, and reliable electricity to all citizens.
18 (B) Absent immediate action by the State to preserve
19 existing carbon-free energy resources, those resources may
20 retire, and the electric generation needs of Illinois'
21 retail customers may be met instead by facilities that
22 emit significant amounts of carbon pollution and other
23 harmful air pollutants at a high social and economic cost
24 until Illinois is able to develop other forms of clean
25 energy.
26 (C) The General Assembly finds that nuclear power
HB1700 Enrolled - 479 - LRB104 08228 SPS 18278 b
1 generation is necessary for the State's transition to 100%
2 clean energy, and ensuring continued operation of nuclear
3 plants advances environmental and public health interests
4 through providing carbon-free electricity while reducing
5 the air pollution profile of the Illinois energy
6 generation fleet.
7 (D) The clean energy attributes of nuclear generation
8 facilities support the State in its efforts to achieve
9 100% clean energy.
10 (E) The State currently invests in various forms of
11 clean energy, including, but not limited to, renewable
12 energy, energy efficiency, and low-emission vehicles,
13 among others.
14 (F) The Environmental Protection Agency commissioned
15 an independent audit which provided a detailed assessment
16 of the financial condition of the Illinois nuclear fleet
17 to evaluate its financial viability and whether the
18 environmental benefits of such resources were at risk. The
19 report identified the risk of losing the environmental
20 benefits of several specific nuclear units. The report
21 also identified that the LaSalle County Generating Station
22 will continue to operate through 2026 and therefore is not
23 eligible to participate in the carbon mitigation credit
24 program.
25 (G) Nuclear plants provide carbon-free energy, which
26 helps to avoid many health-related negative impacts for
HB1700 Enrolled - 480 - LRB104 08228 SPS 18278 b
1 Illinois residents.
2 (H) The procurement of carbon mitigation credits
3 representing the environmental benefits of carbon-free
4 generation will further the State's efforts at achieving
5 100% clean energy and decarbonizing the electricity sector
6 in a safe, reliable, and affordable manner. Further, the
7 procurement of carbon emission credits will enhance the
8 health and welfare of Illinois residents through decreased
9 reliance on more highly polluting generation.
10 (I) The General Assembly therefore finds it necessary
11 to establish carbon mitigation credits to ensure decreased
12 reliance on more carbon-intensive energy resources, for
13 transitioning to a fully decarbonized electricity sector,
14 and to help ensure health and welfare of the State's
15 residents.
16 (2) As used in this subsection:
17 "Baseline costs" means costs used to establish a customer
18 protection cap that have been evaluated through an independent
19 audit of a carbon-free energy resource conducted by the
20 Environmental Protection Agency that evaluated projected
21 annual costs for operation and maintenance expenses; fully
22 allocated overhead costs, which shall be allocated using the
23 methodology developed by the Institute for Nuclear Power
24 Operations; fuel expenditures; nonfuel capital expenditures;
25 spent fuel expenditures; a return on working capital; the cost
26 of operational and market risks that could be avoided by
HB1700 Enrolled - 481 - LRB104 08228 SPS 18278 b
1 ceasing operation; and any other costs necessary for continued
2 operations, provided that "necessary" means, for purposes of
3 this definition, that the costs could reasonably be avoided
4 only by ceasing operations of the carbon-free energy resource.
5 "Carbon mitigation credit" means a tradable credit that
6 represents the carbon emission reduction attributes of one
7 megawatt-hour of energy produced from a carbon-free energy
8 resource.
9 "Carbon-free energy resource" means a generation facility
10 that: (1) is fueled by nuclear power; and (2) is
11 interconnected to PJM Interconnection, LLC.
12 (3) Procurement.
13 (A) Beginning with the delivery year commencing on
14 June 1, 2022, the Agency shall, for electric utilities
15 serving at least 3,000,000 retail customers in the State,
16 seek to procure contracts for no more than approximately
17 54,500,000 cost-effective carbon mitigation credits from
18 carbon-free energy resources because such credits are
19 necessary to support current levels of carbon-free energy
20 generation and ensure the State meets its carbon dioxide
21 emissions reduction goals. The Agency shall not make a
22 partial award of a contract for carbon mitigation credits
23 covering a fractional amount of a carbon-free energy
24 resource's projected output.
25 (B) Each carbon-free energy resource that intends to
26 participate in a procurement shall be required to submit
HB1700 Enrolled - 482 - LRB104 08228 SPS 18278 b
1 to the Agency the following information for the resource
2 on or before the date established by the Agency:
3 (i) the in-service date and remaining useful life
4 of the carbon-free energy resource;
5 (ii) the amount of power generated annually for
6 each of the past 10 years, which shall be used to
7 determine the capability of each facility;
8 (iii) a commitment to be reflected in any contract
9 entered into pursuant to this subsection (d-10) to
10 continue operating the carbon-free energy resource at
11 a capacity factor of at least 88% annually on average
12 for the duration of the contract or contracts executed
13 under the procurement held under this subsection
14 (d-10), except in an instance described in
15 subparagraph (E) of paragraph (1) of subsection (d-5)
16 of this Section or made impracticable as a result of
17 compliance with law or regulation;
18 (iv) financial need and the risk of loss of the
19 environmental benefits of such resource, which shall
20 include the following information:
21 (I) the carbon-free energy resource's cost
22 projections, expressed on a per megawatt-hour
23 basis, over the next 5 delivery years, which shall
24 include the following: operation and maintenance
25 expenses; fully allocated overhead costs, which
26 shall be allocated using the methodology developed
HB1700 Enrolled - 483 - LRB104 08228 SPS 18278 b
1 by the Institute for Nuclear Power Operations;
2 fuel expenditures; nonfuel capital expenditures;
3 spent fuel expenditures; a return on working
4 capital; the cost of operational and market risks
5 that could be avoided by ceasing operation; and
6 any other costs necessary for continued
7 operations, provided that "necessary" means, for
8 purposes of this subitem (I), that the costs could
9 reasonably be avoided only by ceasing operations
10 of the carbon-free energy resource; and
11 (II) the carbon-free energy resource's revenue
12 projections, including energy, capacity, ancillary
13 services, any other direct State support, known or
14 anticipated federal attribute credits, known or
15 anticipated tax credits, and any other direct
16 federal support.
17 The information described in this subparagraph (B) may
18 be submitted on a confidential basis and shall be treated
19 and maintained by the Agency, the procurement
20 administrator, and the Commission as confidential and
21 proprietary and exempt from disclosure under subparagraphs
22 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
23 Information Act. The Office of the Attorney General shall
24 have access to, and maintain the confidentiality of, such
25 information pursuant to Section 6.5 of the Attorney
26 General Act.
HB1700 Enrolled - 484 - LRB104 08228 SPS 18278 b
1 (C) The Agency shall solicit bids for the contracts
2 described in this subsection (d-10) from carbon-free
3 energy resources that have satisfied the requirements of
4 subparagraph (B) of this paragraph (3). The contracts
5 procured pursuant to a procurement event shall reflect,
6 and be subject to, the following terms, requirements, and
7 limitations:
8 (i) Contracts are for delivery of carbon
9 mitigation credits, and are not energy or capacity
10 sales contracts requiring physical delivery. Pursuant
11 to item (iii), contract payments shall fully deduct
12 the value of any monetized federal production tax
13 credits, credits issued pursuant to a federal clean
14 energy standard, and other federal credits if
15 applicable.
16 (ii) Contracts for carbon mitigation credits shall
17 commence with the delivery year beginning on June 1,
18 2022 and shall be for a term of 5 delivery years
19 concluding on May 31, 2027.
20 (iii) The price per carbon mitigation credit to be
21 paid under a contract for a given delivery year shall
22 be equal to an accepted bid price less the sum of:
23 (I) one of the following energy price indices,
24 selected by the bidder at the time of the bid for
25 the term of the contract:
26 (aa) the weighted-average hourly day-ahead
HB1700 Enrolled - 485 - LRB104 08228 SPS 18278 b
1 price for the applicable delivery year at the
2 busbar of all resources procured pursuant to
3 this subsection (d-10), weighted by actual
4 production from the resources; or
5 (bb) the projected energy price for the
6 PJM Interconnection, LLC Northern Illinois Hub
7 for the applicable delivery year determined
8 according to subitem (aa) of item (iii) of
9 subparagraph (B) of paragraph (1) of
10 subsection (d-5).
11 (II) the Base Residual Auction Capacity Price
12 for the ComEd zone as determined by PJM
13 Interconnection, LLC, divided by 24 hours per day,
14 for the applicable delivery year for the first 3
15 delivery years, and then any subsequent delivery
16 years unless the PJM Interconnection, LLC applies
17 the Minimum Offer Price Rule to participating
18 carbon-free energy resources because they supply
19 carbon mitigation credits pursuant to this Section
20 at which time, upon notice by the carbon-free
21 energy resource to the Commission and subject to
22 the Commission's confirmation, the value under
23 this subitem shall be zero, as further described
24 in the carbon mitigation credit procurement plan;
25 and
26 (III) any value of monetized federal tax
HB1700 Enrolled - 486 - LRB104 08228 SPS 18278 b
1 credits, direct payments, or similar subsidy
2 provided to the carbon-free energy resource from
3 any unit of government that is not already
4 reflected in energy prices.
5 If the price-per-megawatt-hour calculation
6 performed under item (iii) of this subparagraph (C)
7 for a given delivery year results in a net positive
8 value, then the electric utility counterparty to the
9 contract shall multiply such net value by the
10 applicable contract quantity and remit the amount to
11 the supplier.
12 To protect retail customers from retail rate
13 impacts that may arise upon the initiation of carbon
14 policy changes, if the price-per-megawatt-hour
15 calculation performed under item (iii) of this
16 subparagraph (C) for a given delivery year results in
17 a net negative value, then the supplier counterparty
18 to the contract shall multiply such net value by the
19 applicable contract quantity and remit such amount to
20 the electric utility counterparty. The electric
21 utility shall reflect such amounts remitted by
22 suppliers as a credit on its retail customer bills as
23 soon as practicable.
24 (iv) To ensure that retail customers in Northern
25 Illinois do not pay more for carbon mitigation credits
26 than the value such credits provide, and
HB1700 Enrolled - 487 - LRB104 08228 SPS 18278 b
1 notwithstanding the provisions of this subsection
2 (d-10), the Agency shall not accept bids for contracts
3 that exceed a customer protection cap equal to the
4 baseline costs of carbon-free energy resources.
5 The baseline costs for the applicable year shall
6 be the following:
7 (I) For the delivery year beginning June 1,
8 2022, the baseline costs shall be an amount equal
9 to $30.30 per megawatt-hour.
10 (II) For the delivery year beginning June 1,
11 2023, the baseline costs shall be an amount equal
12 to $32.50 per megawatt-hour.
13 (III) For the delivery year beginning June 1,
14 2024, the baseline costs shall be an amount equal
15 to $33.43 per megawatt-hour.
16 (IV) For the delivery year beginning June 1,
17 2025, the baseline costs shall be an amount equal
18 to $33.50 per megawatt-hour.
19 (V) For the delivery year beginning June 1,
20 2026, the baseline costs shall be an amount equal
21 to $34.50 per megawatt-hour.
22 An Environmental Protection Agency consultant
23 forecast, included in a report issued April 14, 2021,
24 projects that a carbon-free energy resource has the
25 opportunity to earn on average approximately $30.28
26 per megawatt-hour, for the sale of energy and capacity
HB1700 Enrolled - 488 - LRB104 08228 SPS 18278 b
1 during the time period between 2022 and 2027.
2 Therefore, the sale of carbon mitigation credits
3 provides the opportunity to receive an additional
4 amount per megawatt-hour in addition to the projected
5 prices for energy and capacity.
6 Although actual energy and capacity prices may
7 vary from year-to-year, the General Assembly finds
8 that this customer protection cap will help ensure
9 that the cost of carbon mitigation credits will be
10 less than its value, based upon the social cost of
11 carbon identified in the Technical Support Document
12 issued in February 2021 by the U.S. Interagency
13 Working Group on Social Cost of Greenhouse Gases and
14 the PJM Interconnection, LLC carbon dioxide marginal
15 emission rate for 2020, and that a carbon-free energy
16 resource receiving payment for carbon mitigation
17 credits receives no more than necessary to keep those
18 units in operation.
19 (D) No later than 7 days after the effective date of
20 this amendatory Act of the 102nd General Assembly, the
21 Agency shall publish its proposed carbon mitigation credit
22 procurement plan. The Plan shall provide that winning bids
23 shall be selected by taking into consideration which
24 resources best match public interest criteria that
25 include, but are not limited to, minimizing carbon dioxide
26 emissions that result from electricity consumed in
HB1700 Enrolled - 489 - LRB104 08228 SPS 18278 b
1 Illinois and minimizing sulfur dioxide, nitrogen oxide,
2 and particulate matter emissions that adversely affect the
3 citizens of this State. The selection of winning bids
4 shall also take into account the incremental environmental
5 benefits resulting from the procurement or procurements,
6 such as any existing environmental benefits that are
7 preserved by a procurement held under this subsection
8 (d-10) and would cease to exist if the procurement were
9 not held, including the preservation of carbon-free energy
10 resources. For those bidders having the same public
11 interest criteria score, the relative ranking of such
12 bidders shall be determined by price. The Plan shall
13 describe in detail how each public interest factor shall
14 be considered and weighted in the bid selection process to
15 ensure that the public interest criteria are applied to
16 the procurement. The Plan shall, to the extent practical
17 and permissible by federal law, ensure that successful
18 bidders make commercially reasonable efforts to apply for
19 federal tax credits, direct payments, or similar subsidy
20 programs that support carbon-free generation and for which
21 the successful bidder is eligible. Upon publishing of the
22 carbon mitigation credit procurement plan, copies of the
23 plan shall be posted and made publicly available on the
24 Agency's website. All interested parties shall have 7 days
25 following the date of posting to provide comment to the
26 Agency on the plan. All comments shall be posted to the
HB1700 Enrolled - 490 - LRB104 08228 SPS 18278 b
1 Agency's website. Following the end of the comment period,
2 but no more than 19 days later than the effective date of
3 this amendatory Act of the 102nd General Assembly, the
4 Agency shall revise the plan as necessary based on the
5 comments received and file its carbon mitigation credit
6 procurement plan with the Commission.
7 (E) If the Commission determines that the plan is
8 likely to result in the procurement of cost-effective
9 carbon mitigation credits, then the Commission shall,
10 after notice and hearing and opportunity for comment, but
11 no later than 42 days after the Agency filed the plan,
12 approve the plan or approve it with modification. For
13 purposes of this subsection (d-10), "cost-effective" means
14 carbon mitigation credits that are procured from
15 carbon-free energy resources at prices that are within the
16 limits specified in this paragraph (3). As part of the
17 Commission's review and acceptance or rejection of the
18 procurement results, the Commission shall, in its public
19 notice of successful bidders:
20 (i) identify how the selected carbon-free energy
21 resources satisfy the public interest criteria
22 described in this paragraph (3) of minimizing carbon
23 dioxide emissions that result from electricity
24 consumed in Illinois and minimizing sulfur dioxide,
25 nitrogen oxide, and particulate matter emissions that
26 adversely affect the citizens of this State;
HB1700 Enrolled - 491 - LRB104 08228 SPS 18278 b
1 (ii) specifically address how the selection of
2 carbon-free energy resources takes into account the
3 incremental environmental benefits resulting from the
4 procurement, including any existing environmental
5 benefits that are preserved by the procurements held
6 under this amendatory Act of the 102nd General
7 Assembly and would have ceased to exist if the
8 procurements had not been held, such as the
9 preservation of carbon-free energy resources;
10 (iii) quantify the environmental benefit of
11 preserving the carbon-free energy resources procured
12 pursuant to this subsection (d-10), including the
13 following:
14 (I) an assessment value of avoided greenhouse
15 gas emissions measured as the product of the
16 carbon-free energy resources' output over the
17 contract term, using generally accepted
18 methodologies for the valuation of avoided
19 emissions; and
20 (II) an assessment of costs of replacement
21 with other carbon-free energy resources and
22 renewable energy resources, including wind and
23 photovoltaic generation, based upon an assessment
24 of the prices paid for renewable energy credits
25 through programs and procurements conducted
26 pursuant to subsection (c) of Section 1-75 of this
HB1700 Enrolled - 492 - LRB104 08228 SPS 18278 b
1 Act, and the additional storage necessary to
2 produce the same or similar capability of matching
3 customer usage patterns.
4 (F) The procurements described in this paragraph (3),
5 including, but not limited to, the execution of all
6 contracts procured, shall be completed no later than
7 December 3, 2021. The procurement and plan approval
8 processes required by this paragraph (3) shall be
9 conducted in conjunction with the procurement and plan
10 approval processes required by Section 16-111.5 of the
11 Public Utilities Act, to the extent practicable. However,
12 the Agency and Commission may, as appropriate, modify the
13 various dates and timelines under this subparagraph and
14 subparagraphs (D) and (E) of this paragraph (3) to meet
15 the December 3, 2021 contract execution deadline.
16 Following the completion of such procurements, and
17 consistent with this paragraph (3), the Agency shall
18 calculate the payments to be made under each contract in a
19 timely fashion.
20 (F-1) Costs incurred by the electric utility pursuant
21 to a contract authorized by this subsection (d-10) shall
22 be deemed prudently incurred and reasonable in amount, and
23 the electric utility shall be entitled to full cost
24 recovery pursuant to a tariff or tariffs filed with the
25 Commission.
26 (G) The counterparty electric utility shall retire all
HB1700 Enrolled - 493 - LRB104 08228 SPS 18278 b
1 carbon mitigation credits used to comply with the
2 requirements of this subsection (d-10).
3 (H) If a carbon-free energy resource is sold to
4 another owner, the rights, obligations, and commitments
5 under this subsection (d-10) shall continue to the
6 subsequent owner.
7 (I) This subsection (d-10) shall become inoperative on
8 January 1, 2028.
9 (d-20) Energy storage system portfolio standard.
10 (1) The General Assembly finds that the deployment of
11 energy storage systems is necessary to successfully
12 integrate high levels of renewable energy, to avoid the
13 creation and increase of carbon emissions from electric
14 generation sources, and to ensure affordable, stable,
15 clean, reliable, and resilient electricity.
16 (2) The Agency shall develop an energy storage system
17 resources procurement plan that includes the competitive
18 procurement events, procurement programs, or both, as
19 necessary (i) to meet the goals set forth in this
20 subsection (d-20), (ii) to meet the planning requirements
21 established under Sections 16-201 and 16-202 of the Public
22 Utilities Act, (iii) to meet the clean energy policy
23 established by Public Act 102-662, and (iv) to cause
24 electric utilities serving more than 300,000 customers in
25 the State as of January 1, 2019 to contract for energy
26 storage resources. The energy storage system resources
HB1700 Enrolled - 494 - LRB104 08228 SPS 18278 b
1 procurement plan approval processes shall be conducted
2 consistent with the processes outlined in paragraph (6) of
3 subsection (b) of Section 16-111.5 of the Public Utilities
4 Act, with the initial energy storage system resources
5 procurement plan released for comment in calendar year
6 2027. The Agency shall review and may revise the energy
7 storage system resources procurement plan at least every 2
8 years. The Agency shall establish, and the Commission
9 shall approve or approve as modified, an energy storage
10 system resources procurement plan that includes:
11 (A) storage targets in addition to the initial
12 procurements specified in paragraph (3) of this
13 subsection (d-20) at levels identified through the
14 integrated resource planning process outlined in
15 Section 16-202 of the Public Utilities Act;
16 (B) a bid selection process that is based on the
17 bid price, when compared with an equal energy storage
18 duration and interconnected to the same independent
19 system operator (ISO) or regional transmission
20 organization (RTO), and that may provide for
21 consideration of the following:
22 (i) the project's viability and ability to
23 meet or exceed operational date targets;
24 (ii) the developer's experience;
25 (iii) requirements for demonstration of
26 binding site control that are sufficient for
HB1700 Enrolled - 495 - LRB104 08228 SPS 18278 b
1 proposed energy storage facilities;
2 (iv) the availability or dependence on any
3 transmission expansion or upgrades needed; and
4 (v) other resource adequacy and reliability
5 considerations;
6 (C) consideration of the need to ensure adequate,
7 reliable, affordable, efficient, and environmentally
8 sustainable electric service at the lowest total cost
9 over time;
10 (D) proposals for the financial support of energy
11 storage systems using contract models, which may
12 include, but are not limited to, the following:
13 (i) an indexed storage credit procurement,
14 including payments to energy storage system owners
15 or operators with any offsets and refunds for
16 potential energy and capacity revenues;
17 (ii) support for energy storage system
18 resources through contract structures that do not
19 create contractual obligations on utilities that
20 are not contingent on full and timely cost
21 recovery, that avoid negative financial impacts on
22 the utilities, and that are agreed upon by the
23 utilities; and
24 (iii) other approaches as deemed suitable by
25 the Agency and the Commission; and
26 (E) consideration that the Agency may include a
HB1700 Enrolled - 496 - LRB104 08228 SPS 18278 b
1 methodology that could prioritize procurement of
2 energy storage resources that are located in
3 communities eligible to receive Energy Transition
4 Community Grants pursuant to Section 10-20 of the
5 Energy Community Reinvestment Act.
6 In developing its procurement plan and conducting the
7 storage procurements outlined in this paragraph (2) and in
8 paragraph (3), the Agency may use the services of expert
9 consulting firms identified in paragraphs (1) and (2) of
10 subsection (a) of this Section.
11 (3) Notwithstanding whether an energy storage system
12 resources procurement plan has been approved, the
13 following provisions shall apply to the Agency's initial
14 procurement of energy storage system resources under this
15 subsection (d-20):
16 (A) The Agency shall conduct an initial energy
17 storage procurement on or before August 26, 2026 or 90
18 days after the effective date of this amendatory Act
19 of the 104th General Assembly, whichever is earlier.
20 For the purposes of this initial energy storage
21 procurement, the Agency shall conduct a procurement
22 that results in electric utilities that served more
23 than 300,000 customers in the State as of January 1,
24 2019 contracting for at least 1,038 megawatts of
25 cost-effective stand-alone energy storage systems that
26 can achieve commercial operation on or before December
HB1700 Enrolled - 497 - LRB104 08228 SPS 18278 b
1 31, 2029 or an alternative date proposed by the Agency
2 that is no later than December 31, 2030. The
3 procurement target shall be separated for projects
4 interconnected within Midcontinent Independent System
5 Operator Local Resource Zone 4 (MISO Zone 4) and for
6 projects interconnected within the PJM
7 Interconnection, LLC ComEd Locational Deliverability
8 Area (PJM ComEd Area) as follows:
9 (i) 450 megawatts in MISO Zone 4; and
10 (ii) 588 megawatts in the PJM ComEd Area.
11 For purposes of this subsection (d-20),
12 "stand-alone" means systems that are (i) separately
13 metered by a revenue-quality meter that satisfies the
14 requirements of the RTO; (ii) operate independently
15 without constraints or hindrances from other
16 generation units; and (iii) demonstrate the ability to
17 charge and discharge independent of any generation
18 unit output.
19 (B) The Agency shall conduct a series of
20 additional energy storage procurements that result in
21 electric utilities contracting for energy storage
22 resources in an amount of 3,000 megawatts of
23 cumulative energy storage capacity for projects
24 committed to reaching commercial operation on or
25 before December 31, 2030, or an alternative date
26 proposed by the Agency, subject to extension for a
HB1700 Enrolled - 498 - LRB104 08228 SPS 18278 b
1 delay due to interconnection of the energy storage
2 system, a delay in obtaining permits necessary to
3 build or operate the energy storage system, or other
4 circumstances at the discretion of the Agency.
5 The additional energy storage resources
6 procurements shall be conducted in calendar years 2027
7 and 2028 in a manner that ensures the quantities
8 listed in this subparagraph (B), and as updated in the
9 integrated resource plan approved by the Commission
10 pursuant to Section 16-201 of the Public Utilities
11 Act, are met in the specified timeframe. To the extent
12 the integrated resource planning process outlined in
13 Section 16-202 of the Public Utilities Act authorizes
14 energy storage system procurement amounts above the
15 amount identified in this subparagraph (B), the Agency
16 shall conduct additional energy storage procurements
17 in 2028, 2029, 2030, and thereafter that result in
18 electric utilities contracting for energy storage
19 resources at those additional identified levels. The
20 procurements shall be conducted in a manner that
21 maximizes projects available in the MISO and PJM
22 queues, ensures the likelihood of project development
23 through the development of project maturity
24 requirements, enables sufficient competition for price
25 competitiveness, and aligns to the extent practicable
26 with regional transmission organization study phases.
HB1700 Enrolled - 499 - LRB104 08228 SPS 18278 b
1 The procurements shall select projects interconnected
2 to MISO Zone 4 and the PJM ComEd Area and shall follow
3 either (i) a similar geographic split to the ratio of
4 quantities established in subparagraph (A) of this
5 paragraph (3), (ii) an alternative geographic split
6 proposed by the Agency based on project availability
7 in advanced stages of the MISO and PJM queues, or (iii)
8 that is informed by MISO and PJM planning activities,
9 auctions, or reports that indicate capacity resource
10 shortages or impending shortages and that reflect the
11 assessments made through the processes outlined in
12 subparagraph (A) of paragraph (2). The additional
13 energy storage capacity procurements may be adjusted
14 upward if determined necessary through the planning
15 process outlined in Section 16-201 of the Public
16 Utilities Act at times determined by the Commission.
17 (C) The initial energy storage resources
18 procurement under subparagraph (A) of this paragraph
19 (3) shall adopt a standard indexed storage credit
20 contract modeled after the contract and follow a
21 process modeled after the process included in the
22 staff report submitted to the Governor, General
23 Assembly, and Commission pursuant to subsection (g) of
24 Section 16-135 of the Public Utilities Act on May 1,
25 2025. In developing the procurement rules and
26 procurement process for the initial procurement, the
HB1700 Enrolled - 500 - LRB104 08228 SPS 18278 b
1 Agency shall provide an opportunity for comment on the
2 indexed storage credit contract included in the May 1,
3 2025 staff report and shall adopt modifications to the
4 contract consistent with the process outlined in
5 paragraph (2) of subsection (e) of Section 16-111.5 of
6 the Public Utilities Act.
7 (D) For the additional energy storage resources
8 procurements conducted in accordance with subparagraph
9 (B) of this paragraph (3), the Agency may, among other
10 considerations, consider other contract structures if
11 such contract structures and agreements do not create
12 contractual obligations on utilities that are not
13 contingent on full and timely cost recovery, avoid
14 negative financial impacts on the utilities, and are
15 agreed upon by the participating utility.
16 (E) The initial and additional energy storage
17 resources procurements under this paragraph (3) shall
18 solicit 20-year contracts.
19 (F) The Agency shall submit its proposed selection
20 of successful bids for each procurement event pursuant
21 to paragraphs (2) and (3) to the Commission for
22 approval consistent with the processes outlined in
23 Section 16-111.5 of the Public Utilities Act to the
24 extent practicable.
25 (4) The energy storage system resources procurement
26 plans developed by the Agency may consider alternatives to
HB1700 Enrolled - 501 - LRB104 08228 SPS 18278 b
1 the initial and additional procurement terms described in
2 paragraph (3) of this subsection (d-20), including, but
3 not limited to:
4 (A) alternatives to the standard indexed storage
5 credit contract used in the initial terms described in
6 subparagraph (C) of paragraph (3) of this subsection
7 (d-20);
8 (B) energy storage systems that are not
9 stand-alone;
10 (C) proportionate allocations between MISO Zone 4
11 and the PJM ComEd Area that are not based upon load
12 share, including allocations reflecting the
13 assessments made through the processes outlined in
14 subparagraph (A) of paragraph (2);
15 (D) contract lengths other than 20 years;
16 (E) energy storage system durations other than 4
17 hours; and
18 (F) energy storage systems connected to the
19 distribution systems of the electric utilities.
20 The Agency may propose specific timelines for energy
21 storage system resources procurements, which may differ
22 across RTO zones, that are based in part upon a
23 consideration of (i) the timing of the release of
24 interconnection cost information through both MISO and PJM
25 interconnection queue processes, (ii) factors that
26 maximize the likelihood of successful project development,
HB1700 Enrolled - 502 - LRB104 08228 SPS 18278 b
1 (iii) enabling sufficient competition for price
2 competitiveness, and (iv) aligning to the extent
3 practicable with RTO study phases.
4 (5) The Agency shall procure cost-effective energy
5 storage credits or other contract instruments intended to
6 facilitate the successful development of energy storage
7 projects. The procurement administrator shall establish
8 confidential price benchmarks based on publicly available
9 data on regional technology costs. Confidential price
10 benchmarks shall be developed by the procurement
11 administrator, in consultation with Commission staff,
12 Agency staff, and the procurement monitor, and shall be
13 subject to Commission review and approval. Price
14 benchmarks shall reflect development costs, financing
15 costs, and related costs resulting from requirements
16 imposed through other provisions of State law. As used in
17 this paragraph (5), "cost-effective" means a bidder's bid
18 price that does not exceed confidential price benchmarks.
19 (6) All procurements under this subsection (d-20)
20 shall comply with the geographic requirements in
21 subparagraph (I) of paragraph (1) of subsection (c) of
22 Section 1-75 and shall follow the procurement processes
23 and procedures described in this Section and Section
24 16-111.5 of the Public Utilities Act, to the extent
25 practicable. The processes and procedures may be expedited
26 to accommodate the schedule established by this Section.
HB1700 Enrolled - 503 - LRB104 08228 SPS 18278 b
1 The Agency shall require all bidders to pay to the Agency a
2 nonrefundable deposit determined by the Agency and no less
3 than $10,000 per bid as practical. The Agency may also
4 assess bidder and supplier fees to cover the cost of
5 procurement events and develop collateral requirements to
6 maximize the likelihood of successful project development.
7 Bidders in the initial and additional procurements
8 described in paragraph (3) of this subsection (d-20) shall
9 also demonstrate experience in developing to commercial
10 readiness. As used in this paragraph (6), "developing to
11 commercial readiness" means having notice to proceed in
12 owning or operating energy facilities with a combined
13 nameplate capacity of at least 100 megawatts.
14 (7) In order to advance priority access to the clean
15 energy economy for businesses and workers from communities
16 that have been excluded from economic opportunities in the
17 energy sector, have been subject to disproportionate
18 levels of pollution, and have disproportionately
19 experienced negative public health outcomes, the Agency
20 shall apply its equity accountability system and minimum
21 equity standards established under subsections (c-10),
22 (c-15), (c-20), (c-25), and (c-30) of this Section to
23 energy storage procurement and programs and may include
24 any proposed modifications to the equity accountability
25 system and minimum equity standards that may be warranted
26 with respect to energy storage resources in its plan
HB1700 Enrolled - 504 - LRB104 08228 SPS 18278 b
1 submission to the Commission under Section 16-111.5 of the
2 Public Utilities Act.
3 (8) Projects shall be developed in compliance with the
4 prevailing wage and project labor agreement requirements
5 for renewable energy projects in subparagraph (Q) of
6 paragraph (1) of subsection (c) of Section 1-75.
7 (9) An entity operating an energy storage facility
8 shall demonstrate that it has entered into a labor peace
9 agreement with a bona fide labor organization that is
10 actively engaged in representing its employees. The labor
11 peace agreement shall apply to the employees necessary for
12 the ongoing maintenance and operation of the energy
13 storage facility. The existence of a labor peace agreement
14 shall be an ongoing material condition of an entity's
15 authorization to maintain and operate the energy storage
16 facility.
17 (10) In order to promote the competitive development
18 of energy storage systems in furtherance of the State's
19 interest in the health, safety, and welfare of its
20 residents, storage credits shall not be eligible to be
21 selected under this subsection (d-20) if the energy
22 storage resources are sourced from an energy storage
23 system whose costs were being recovered through rates
24 regulated by the State or any other state or states on or
25 after January 1, 2017. No entity shall be permitted to bid
26 unless it certifies to the Agency that it is not an
HB1700 Enrolled - 505 - LRB104 08228 SPS 18278 b
1 electric utility, as defined in Section 16-102 of the
2 Public Utilities Act, serving more than 10,000 customers
3 in the State.
4 (11) The Agency shall require, 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
8 energy storage system is connected to the transmission or
9 distribution system.
10 (12) Contracts shall provide that, if the cost
11 recovery mechanism referenced in subsection (k) of Section
12 16-108 of the Public Utilities Act remains in full force
13 without amendment or the utility is otherwise authorized
14 or entitled to full, prompt, and uninterrupted recovery of
15 its costs through any other mechanism, then such seller
16 shall be entitled to full, prompt, and uninterrupted
17 payment under the applicable contract notwithstanding the
18 application of this paragraph (12).
19 (e) The draft procurement plans are subject to public
20 comment, as required by Section 16-111.5 of the Public
21 Utilities Act.
22 (f) The Agency shall submit the final procurement plan to
23 the Commission. The Agency shall revise a procurement plan if
24 the Commission determines that it does not meet the standards
25 set forth in Section 16-111.5 of the Public Utilities Act.
26 (g) The Agency shall assess fees to each affected utility
HB1700 Enrolled - 506 - LRB104 08228 SPS 18278 b
1 to recover the costs incurred in preparation of procurement
2 plans and in the operation of programs.
3 (h) The Agency shall assess fees to each bidder to recover
4 the costs incurred in connection with a competitive
5 procurement process.
6 (i) A renewable energy credit, carbon emission credit,
7 zero emission credit, or carbon mitigation credit can only be
8 used once to comply with a single portfolio or other standard
9 as set forth in subsection (c), subsection (d), or subsection
10 (d-5) of this Section, respectively. A renewable energy
11 credit, carbon emission credit, zero emission credit, or
12 carbon mitigation credit cannot be used to satisfy the
13 requirements of more than one standard. If more than one type
14 of credit is issued for the same megawatt hour of energy, only
15 one credit can be used to satisfy the requirements of a single
16 standard. After such use, the credit must be retired together
17 with any other credits issued for the same megawatt hour of
18 energy.
19 (Source: P.A. 103-380, eff. 1-1-24; 103-580, eff. 12-8-23;
20 103-1066, eff. 2-20-25; 104-458, eff. 6-1-26.)
21 Section 20. The Public Utilities Act is amended by
22 changing Sections 8-103B, 8-104, 16-107.5, 16-107.6, 16-107.9,
23 16-202, 20-140, and 23-115 as follows:
24 (220 ILCS 5/8-103B)
HB1700 Enrolled - 507 - LRB104 08228 SPS 18278 b
1 (Text of Section before amendment by P.A. 104-458)
2 Sec. 8-103B. Energy efficiency and demand-response
3 measures.
4 (a) It is the policy of the State that electric utilities
5 are required to use cost-effective energy efficiency and
6 demand-response measures to reduce delivery load. Requiring
7 investment in cost-effective energy efficiency and
8 demand-response measures will reduce direct and indirect costs
9 to consumers by decreasing environmental impacts and by
10 avoiding or delaying the need for new generation,
11 transmission, and distribution infrastructure. It serves the
12 public interest to allow electric utilities to recover costs
13 for reasonably and prudently incurred expenditures for energy
14 efficiency and demand-response measures. As used in this
15 Section, "cost-effective" means that the measures satisfy the
16 total resource cost test. The low-income measures described in
17 subsection (c) of this Section shall not be required to meet
18 the total resource cost test. For purposes of this Section,
19 the terms "energy-efficiency", "demand-response", "electric
20 utility", and "total resource cost test" have the meanings set
21 forth in the Illinois Power Agency Act. "Black, indigenous,
22 and people of color" and "BIPOC" means people who are members
23 of the groups described in subparagraphs (a) through (e) of
24 paragraph (A) of subsection (1) of Section 2 of the Business
25 Enterprise for Minorities, Women, and Persons with
26 Disabilities Act.
HB1700 Enrolled - 508 - LRB104 08228 SPS 18278 b
1 (a-5) This Section applies to electric utilities serving
2 more than 500,000 retail customers in the State for those
3 multi-year plans commencing after December 31, 2017.
4 (b) For purposes of this Section, electric utilities
5 subject to this Section that serve more than 3,000,000 retail
6 customers in the State shall be deemed to have achieved a
7 cumulative persisting annual savings of 6.6% from energy
8 efficiency measures and programs implemented during the period
9 beginning January 1, 2012 and ending December 31, 2017, which
10 percent is based on the deemed average weather normalized
11 sales of electric power and energy during calendar years 2014,
12 2015, and 2016 of 88,000,000 MWhs. For the purposes of this
13 subsection (b) and subsection (b-5), the 88,000,000 MWhs of
14 deemed electric power and energy sales shall be reduced by the
15 number of MWhs equal to the sum of the annual consumption of
16 customers that have opted out of subsections (a) through (j)
17 of this Section under paragraph (1) of subsection (l) of this
18 Section, as averaged across the calendar years 2014, 2015, and
19 2016. After 2017, the deemed value of cumulative persisting
20 annual savings from energy efficiency measures and programs
21 implemented during the period beginning January 1, 2012 and
22 ending December 31, 2017, shall be reduced each year, as
23 follows, and the applicable value shall be applied to and
24 count toward the utility's achievement of the cumulative
25 persisting annual savings goals set forth in subsection (b-5):
26 (1) 5.8% deemed cumulative persisting annual savings
HB1700 Enrolled - 509 - LRB104 08228 SPS 18278 b
1 for the year ending December 31, 2018;
2 (2) 5.2% deemed cumulative persisting annual savings
3 for the year ending December 31, 2019;
4 (3) 4.5% deemed cumulative persisting annual savings
5 for the year ending December 31, 2020;
6 (4) 4.0% deemed cumulative persisting annual savings
7 for the year ending December 31, 2021;
8 (5) 3.5% deemed cumulative persisting annual savings
9 for the year ending December 31, 2022;
10 (6) 3.1% deemed cumulative persisting annual savings
11 for the year ending December 31, 2023;
12 (7) 2.8% deemed cumulative persisting annual savings
13 for the year ending December 31, 2024;
14 (8) 2.5% deemed cumulative persisting annual savings
15 for the year ending December 31, 2025;
16 (9) 2.3% deemed cumulative persisting annual savings
17 for the year ending December 31, 2026;
18 (10) 2.1% deemed cumulative persisting annual savings
19 for the year ending December 31, 2027;
20 (11) 1.8% deemed cumulative persisting annual savings
21 for the year ending December 31, 2028;
22 (12) 1.7% deemed cumulative persisting annual savings
23 for the year ending December 31, 2029;
24 (13) 1.5% deemed cumulative persisting annual savings
25 for the year ending December 31, 2030;
26 (14) 1.3% deemed cumulative persisting annual savings
HB1700 Enrolled - 510 - LRB104 08228 SPS 18278 b
1 for the year ending December 31, 2031;
2 (15) 1.1% deemed cumulative persisting annual savings
3 for the year ending December 31, 2032;
4 (16) 0.9% deemed cumulative persisting annual savings
5 for the year ending December 31, 2033;
6 (17) 0.7% deemed cumulative persisting annual savings
7 for the year ending December 31, 2034;
8 (18) 0.5% deemed cumulative persisting annual savings
9 for the year ending December 31, 2035;
10 (19) 0.4% deemed cumulative persisting annual savings
11 for the year ending December 31, 2036;
12 (20) 0.3% deemed cumulative persisting annual savings
13 for the year ending December 31, 2037;
14 (21) 0.2% deemed cumulative persisting annual savings
15 for the year ending December 31, 2038;
16 (22) 0.1% deemed cumulative persisting annual savings
17 for the year ending December 31, 2039; and
18 (23) 0.0% deemed cumulative persisting annual savings
19 for the year ending December 31, 2040 and all subsequent
20 years.
21 For purposes of this Section, "cumulative persisting
22 annual savings" means the total electric energy savings in a
23 given year from measures installed in that year or in previous
24 years, but no earlier than January 1, 2012, that are still
25 operational and providing savings in that year because the
26 measures have not yet reached the end of their useful lives.
HB1700 Enrolled - 511 - LRB104 08228 SPS 18278 b
1 (b-5) Beginning in 2018, electric utilities subject to
2 this Section that serve more than 3,000,000 retail customers
3 in the State shall achieve the following cumulative persisting
4 annual savings goals, as modified by subsection (f) of this
5 Section and as compared to the deemed baseline of 88,000,000
6 MWhs of electric power and energy sales set forth in
7 subsection (b), as reduced by the number of MWhs equal to the
8 sum of the annual consumption of customers that have opted out
9 of subsections (a) through (j) of this Section under paragraph
10 (1) of subsection (l) of this Section as averaged across the
11 calendar years 2014, 2015, and 2016, through the
12 implementation of energy efficiency measures during the
13 applicable year and in prior years, but no earlier than
14 January 1, 2012:
15 (1) 7.8% cumulative persisting annual savings for the
16 year ending December 31, 2018;
17 (2) 9.1% cumulative persisting annual savings for the
18 year ending December 31, 2019;
19 (3) 10.4% cumulative persisting annual savings for the
20 year ending December 31, 2020;
21 (4) 11.8% cumulative persisting annual savings for the
22 year ending December 31, 2021;
23 (5) 13.1% cumulative persisting annual savings for the
24 year ending December 31, 2022;
25 (6) 14.4% cumulative persisting annual savings for the
26 year ending December 31, 2023;
HB1700 Enrolled - 512 - LRB104 08228 SPS 18278 b
1 (7) 15.7% cumulative persisting annual savings for the
2 year ending December 31, 2024;
3 (8) 17% cumulative persisting annual savings for the
4 year ending December 31, 2025;
5 (9) 17.9% cumulative persisting annual savings for the
6 year ending December 31, 2026;
7 (10) 18.8% cumulative persisting annual savings for
8 the year ending December 31, 2027;
9 (11) 19.7% cumulative persisting annual savings for
10 the year ending December 31, 2028;
11 (12) 20.6% cumulative persisting annual savings for
12 the year ending December 31, 2029; and
13 (13) 21.5% cumulative persisting annual savings for
14 the year ending December 31, 2030.
15 No later than December 31, 2021, the Illinois Commerce
16 Commission shall establish additional cumulative persisting
17 annual savings goals for the years 2031 through 2035. No later
18 than December 31, 2024, the Illinois Commerce Commission shall
19 establish additional cumulative persisting annual savings
20 goals for the years 2036 through 2040. The Commission shall
21 also establish additional cumulative persisting annual savings
22 goals every 5 years thereafter to ensure that utilities always
23 have goals that extend at least 11 years into the future. The
24 cumulative persisting annual savings goals beyond the year
25 2030 shall increase by 0.9 percentage points per year, absent
26 a Commission decision to initiate a proceeding to consider
HB1700 Enrolled - 513 - LRB104 08228 SPS 18278 b
1 establishing goals that increase by more or less than that
2 amount. Such a proceeding must be conducted in accordance with
3 the procedures described in subsection (f) of this Section. If
4 such a proceeding is initiated, the cumulative persisting
5 annual savings goals established by the Commission through
6 that proceeding shall reflect the Commission's best estimate
7 of the maximum amount of additional savings that are forecast
8 to be cost-effectively achievable unless such best estimates
9 would result in goals that represent less than 0.5 percentage
10 point annual increases in total cumulative persisting annual
11 savings. The Commission may only establish goals that
12 represent less than 0.5 percentage point annual increases in
13 cumulative persisting annual savings if it can demonstrate,
14 based on clear and convincing evidence and through independent
15 analysis, that 0.5 percentage point increases are not
16 cost-effectively achievable. The Commission shall inform its
17 decision based on an energy efficiency potential study that
18 conforms to the requirements of this Section.
19 (b-10) For purposes of this Section, electric utilities
20 subject to this Section that serve less than 3,000,000 retail
21 customers but more than 500,000 retail customers in the State
22 shall be deemed to have achieved a cumulative persisting
23 annual savings of 6.6% from energy efficiency measures and
24 programs implemented during the period beginning January 1,
25 2012 and ending December 31, 2017, which is based on the deemed
26 average weather normalized sales of electric power and energy
HB1700 Enrolled - 514 - LRB104 08228 SPS 18278 b
1 during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs.
2 For the purposes of this subsection (b-10) and subsection
3 (b-15), the 36,900,000 MWhs of deemed electric power and
4 energy sales shall be reduced by the number of MWhs equal to
5 the sum of the annual consumption of customers that have opted
6 out of subsections (a) through (j) of this Section under
7 paragraph (1) of subsection (l) of this Section, as averaged
8 across the calendar years 2014, 2015, and 2016. After 2017,
9 the deemed value of cumulative persisting annual savings from
10 energy efficiency measures and programs implemented during the
11 period beginning January 1, 2012 and ending December 31, 2017,
12 shall be reduced each year, as follows, and the applicable
13 value shall be applied to and count toward the utility's
14 achievement of the cumulative persisting annual savings goals
15 set forth in subsection (b-15):
16 (1) 5.8% deemed cumulative persisting annual savings
17 for the year ending December 31, 2018;
18 (2) 5.2% deemed cumulative persisting annual savings
19 for the year ending December 31, 2019;
20 (3) 4.5% deemed cumulative persisting annual savings
21 for the year ending December 31, 2020;
22 (4) 4.0% deemed cumulative persisting annual savings
23 for the year ending December 31, 2021;
24 (5) 3.5% deemed cumulative persisting annual savings
25 for the year ending December 31, 2022;
26 (6) 3.1% deemed cumulative persisting annual savings
HB1700 Enrolled - 515 - LRB104 08228 SPS 18278 b
1 for the year ending December 31, 2023;
2 (7) 2.8% deemed cumulative persisting annual savings
3 for the year ending December 31, 2024;
4 (8) 2.5% deemed cumulative persisting annual savings
5 for the year ending December 31, 2025;
6 (9) 2.3% deemed cumulative persisting annual savings
7 for the year ending December 31, 2026;
8 (10) 2.1% deemed cumulative persisting annual savings
9 for the year ending December 31, 2027;
10 (11) 1.8% deemed cumulative persisting annual savings
11 for the year ending December 31, 2028;
12 (12) 1.7% deemed cumulative persisting annual savings
13 for the year ending December 31, 2029;
14 (13) 1.5% deemed cumulative persisting annual savings
15 for the year ending December 31, 2030;
16 (14) 1.3% deemed cumulative persisting annual savings
17 for the year ending December 31, 2031;
18 (15) 1.1% deemed cumulative persisting annual savings
19 for the year ending December 31, 2032;
20 (16) 0.9% deemed cumulative persisting annual savings
21 for the year ending December 31, 2033;
22 (17) 0.7% deemed cumulative persisting annual savings
23 for the year ending December 31, 2034;
24 (18) 0.5% deemed cumulative persisting annual savings
25 for the year ending December 31, 2035;
26 (19) 0.4% deemed cumulative persisting annual savings
HB1700 Enrolled - 516 - LRB104 08228 SPS 18278 b
1 for the year ending December 31, 2036;
2 (20) 0.3% deemed cumulative persisting annual savings
3 for the year ending December 31, 2037;
4 (21) 0.2% deemed cumulative persisting annual savings
5 for the year ending December 31, 2038;
6 (22) 0.1% deemed cumulative persisting annual savings
7 for the year ending December 31, 2039; and
8 (23) 0.0% deemed cumulative persisting annual savings
9 for the year ending December 31, 2040 and all subsequent
10 years.
11 (b-15) Beginning in 2018, electric utilities subject to
12 this Section that serve less than 3,000,000 retail customers
13 but more than 500,000 retail customers in the State shall
14 achieve the following cumulative persisting annual savings
15 goals, as modified by subsection (b-20) and subsection (f) of
16 this Section and as compared to the deemed baseline as reduced
17 by the number of MWhs equal to the sum of the annual
18 consumption of customers that have opted out of subsections
19 (a) through (j) of this Section under paragraph (1) of
20 subsection (l) of this Section as averaged across the calendar
21 years 2014, 2015, and 2016, through the implementation of
22 energy efficiency measures during the applicable year and in
23 prior years, but no earlier than January 1, 2012:
24 (1) 7.4% cumulative persisting annual savings for the
25 year ending December 31, 2018;
26 (2) 8.2% cumulative persisting annual savings for the
HB1700 Enrolled - 517 - LRB104 08228 SPS 18278 b
1 year ending December 31, 2019;
2 (3) 9.0% cumulative persisting annual savings for the
3 year ending December 31, 2020;
4 (4) 9.8% cumulative persisting annual savings for the
5 year ending December 31, 2021;
6 (5) 10.6% cumulative persisting annual savings for the
7 year ending December 31, 2022;
8 (6) 11.4% cumulative persisting annual savings for the
9 year ending December 31, 2023;
10 (7) 12.2% cumulative persisting annual savings for the
11 year ending December 31, 2024;
12 (8) 13% cumulative persisting annual savings for the
13 year ending December 31, 2025;
14 (9) 13.6% cumulative persisting annual savings for the
15 year ending December 31, 2026;
16 (10) 14.2% cumulative persisting annual savings for
17 the year ending December 31, 2027;
18 (11) 14.8% cumulative persisting annual savings for
19 the year ending December 31, 2028;
20 (12) 15.4% cumulative persisting annual savings for
21 the year ending December 31, 2029; and
22 (13) 16% cumulative persisting annual savings for the
23 year ending December 31, 2030.
24 No later than December 31, 2021, the Illinois Commerce
25 Commission shall establish additional cumulative persisting
26 annual savings goals for the years 2031 through 2035. No later
HB1700 Enrolled - 518 - LRB104 08228 SPS 18278 b
1 than December 31, 2024, the Illinois Commerce Commission shall
2 establish additional cumulative persisting annual savings
3 goals for the years 2036 through 2040. The Commission shall
4 also establish additional cumulative persisting annual savings
5 goals every 5 years thereafter to ensure that utilities always
6 have goals that extend at least 11 years into the future. The
7 cumulative persisting annual savings goals beyond the year
8 2030 shall increase by 0.6 percentage points per year, absent
9 a Commission decision to initiate a proceeding to consider
10 establishing goals that increase by more or less than that
11 amount. Such a proceeding must be conducted in accordance with
12 the procedures described in subsection (f) of this Section. If
13 such a proceeding is initiated, the cumulative persisting
14 annual savings goals established by the Commission through
15 that proceeding shall reflect the Commission's best estimate
16 of the maximum amount of additional savings that are forecast
17 to be cost-effectively achievable unless such best estimates
18 would result in goals that represent less than 0.4 percentage
19 point annual increases in total cumulative persisting annual
20 savings. The Commission may only establish goals that
21 represent less than 0.4 percentage point annual increases in
22 cumulative persisting annual savings if it can demonstrate,
23 based on clear and convincing evidence and through independent
24 analysis, that 0.4 percentage point increases are not
25 cost-effectively achievable. The Commission shall inform its
26 decision based on an energy efficiency potential study that
HB1700 Enrolled - 519 - LRB104 08228 SPS 18278 b
1 conforms to the requirements of this Section.
2 (b-20) Each electric utility subject to this Section may
3 include cost-effective voltage optimization measures in its
4 plans submitted under subsections (f) and (g) of this Section,
5 and the costs incurred by a utility to implement the measures
6 under a Commission-approved plan shall be recovered under the
7 provisions of Article IX or Section 16-108.5 of this Act. For
8 purposes of this Section, the measure life of voltage
9 optimization measures shall be 15 years. The measure life
10 period is independent of the depreciation rate of the voltage
11 optimization assets deployed. Utilities may claim savings from
12 voltage optimization on circuits for more than 15 years if
13 they can demonstrate that they have made additional
14 investments necessary to enable voltage optimization savings
15 to continue beyond 15 years. Such demonstrations must be
16 subject to the review of independent evaluation.
17 Within 270 days after June 1, 2017 (the effective date of
18 Public Act 99-906), an electric utility that serves less than
19 3,000,000 retail customers but more than 500,000 retail
20 customers in the State shall file a plan with the Commission
21 that identifies the cost-effective voltage optimization
22 investment the electric utility plans to undertake through
23 December 31, 2024. The Commission, after notice and hearing,
24 shall approve or approve with modification the plan within 120
25 days after the plan's filing and, in the order approving or
26 approving with modification the plan, the Commission shall
HB1700 Enrolled - 520 - LRB104 08228 SPS 18278 b
1 adjust the applicable cumulative persisting annual savings
2 goals set forth in subsection (b-15) to reflect any amount of
3 cost-effective energy savings approved by the Commission that
4 is greater than or less than the following cumulative
5 persisting annual savings values attributable to voltage
6 optimization for the applicable year:
7 (1) 0.0% of cumulative persisting annual savings for
8 the year ending December 31, 2018;
9 (2) 0.17% of cumulative persisting annual savings for
10 the year ending December 31, 2019;
11 (3) 0.17% of cumulative persisting annual savings for
12 the year ending December 31, 2020;
13 (4) 0.33% of cumulative persisting annual savings for
14 the year ending December 31, 2021;
15 (5) 0.5% of cumulative persisting annual savings for
16 the year ending December 31, 2022;
17 (6) 0.67% of cumulative persisting annual savings for
18 the year ending December 31, 2023;
19 (7) 0.83% of cumulative persisting annual savings for
20 the year ending December 31, 2024; and
21 (8) 1.0% of cumulative persisting annual savings for
22 the year ending December 31, 2025 and all subsequent
23 years.
24 (b-25) In the event an electric utility jointly offers an
25 energy efficiency measure or program with a gas utility under
26 plans approved under this Section and Section 8-104 of this
HB1700 Enrolled - 521 - LRB104 08228 SPS 18278 b
1 Act, the electric utility may continue offering the program,
2 including the gas energy efficiency measures, in the event the
3 gas utility discontinues funding the program. In that event,
4 the energy savings value associated with such other fuels
5 shall be converted to electric energy savings on an equivalent
6 Btu basis for the premises. However, the electric utility
7 shall prioritize programs for low-income residential customers
8 to the extent practicable. An electric utility may recover the
9 costs of offering the gas energy efficiency measures under
10 this subsection (b-25).
11 For those energy efficiency measures or programs that save
12 both electricity and other fuels but are not jointly offered
13 with a gas utility under plans approved under this Section and
14 Section 8-104 or not offered with an affiliated gas utility
15 under paragraph (6) of subsection (f) of Section 8-104 of this
16 Act, the electric utility may count savings of fuels other
17 than electricity toward the achievement of its annual savings
18 goal, and the energy savings value associated with such other
19 fuels shall be converted to electric energy savings on an
20 equivalent Btu basis at the premises.
21 In no event shall more than 10% of each year's applicable
22 annual total savings requirement as defined in paragraph (7.5)
23 of subsection (g) of this Section be met through savings of
24 fuels other than electricity.
25 (b-27) Beginning in 2022, an electric utility may offer
26 and promote measures that electrify space heating, water
HB1700 Enrolled - 522 - LRB104 08228 SPS 18278 b
1 heating, cooling, drying, cooking, industrial processes, and
2 other building and industrial end uses that would otherwise be
3 served by combustion of fossil fuel at the premises, provided
4 that the electrification measures reduce total energy
5 consumption at the premises. The electric utility may count
6 the reduction in energy consumption at the premises toward
7 achievement of its annual savings goals. The reduction in
8 energy consumption at the premises shall be calculated as the
9 difference between: (A) the reduction in Btu consumption of
10 fossil fuels as a result of electrification, converted to
11 kilowatt-hour equivalents by dividing by 3,412 Btus per
12 kilowatt hour; and (B) the increase in kilowatt hours of
13 electricity consumption resulting from the displacement of
14 fossil fuel consumption as a result of electrification. An
15 electric utility may recover the costs of offering and
16 promoting electrification measures under this subsection
17 (b-27).
18 In no event shall electrification savings counted toward
19 each year's applicable annual total savings requirement, as
20 defined in paragraph (7.5) of subsection (g) of this Section,
21 be greater than:
22 (1) 5% per year for each year from 2022 through 2025;
23 (2) 10% per year for each year from 2026 through 2029;
24 and
25 (3) 15% per year for 2030 and all subsequent years.
26 In addition, a minimum of 25% of all electrification savings
HB1700 Enrolled - 523 - LRB104 08228 SPS 18278 b
1 counted toward a utility's applicable annual total savings
2 requirement must be from electrification of end uses in
3 low-income housing. The limitations on electrification savings
4 that may be counted toward a utility's annual savings goals
5 are separate from and in addition to the subsection (b-25)
6 limitations governing the counting of the other fuel savings
7 resulting from efficiency measures and programs.
8 As part of the annual informational filing to the
9 Commission that is required under paragraph (9) of subsection
10 (g) of this Section, each utility shall identify the specific
11 electrification measures offered under this subsection (b-27);
12 the quantity of each electrification measure that was
13 installed by its customers; the average total cost, average
14 utility cost, average reduction in fossil fuel consumption,
15 and average increase in electricity consumption associated
16 with each electrification measure; the portion of
17 installations of each electrification measure that were in
18 low-income single-family housing, low-income multifamily
19 housing, non-low-income single-family housing, non-low-income
20 multifamily housing, commercial buildings, and industrial
21 facilities; and the quantity of savings associated with each
22 measure category in each customer category that are being
23 counted toward the utility's applicable annual total savings
24 requirement. Prior to installing an electrification measure,
25 the utility shall provide a customer with an estimate of the
26 impact of the new measure on the customer's average monthly
HB1700 Enrolled - 524 - LRB104 08228 SPS 18278 b
1 electric bill and total annual energy expenses.
2 (c) Electric utilities shall be responsible for overseeing
3 the design, development, and filing of energy efficiency plans
4 with the Commission and may, as part of that implementation,
5 outsource various aspects of program development and
6 implementation. A minimum of 10%, for electric utilities that
7 serve more than 3,000,000 retail customers in the State, and a
8 minimum of 7%, for electric utilities that serve less than
9 3,000,000 retail customers but more than 500,000 retail
10 customers in the State, of the utility's entire portfolio
11 funding level for a given year shall be used to procure
12 cost-effective energy efficiency measures from units of local
13 government, municipal corporations, school districts, public
14 housing, public institutions of higher education, and
15 community college districts, provided that a minimum
16 percentage of available funds shall be used to procure energy
17 efficiency from public housing, which percentage shall be
18 equal to public housing's share of public building energy
19 consumption.
20 The utilities shall also implement energy efficiency
21 measures targeted at low-income households, which, for
22 purposes of this Section, shall be defined as households at or
23 below 80% of area median income, and expenditures to implement
24 the measures shall be no less than $40,000,000 per year for
25 electric utilities that serve more than 3,000,000 retail
26 customers in the State and no less than $13,000,000 per year
HB1700 Enrolled - 525 - LRB104 08228 SPS 18278 b
1 for electric utilities that serve less than 3,000,000 retail
2 customers but more than 500,000 retail customers in the State.
3 The ratio of spending on efficiency programs targeted at
4 low-income multifamily buildings to spending on efficiency
5 programs targeted at low-income single-family buildings shall
6 be designed to achieve levels of savings from each building
7 type that are approximately proportional to the magnitude of
8 cost-effective lifetime savings potential in each building
9 type. Investment in low-income whole-building weatherization
10 programs shall constitute a minimum of 80% of a utility's
11 total budget specifically dedicated to serving low-income
12 customers.
13 The utilities shall work to bundle low-income energy
14 efficiency offerings with other programs that serve low-income
15 households to maximize the benefits going to these households.
16 The utilities shall market and implement low-income energy
17 efficiency programs in coordination with low-income assistance
18 programs, the Illinois Solar for All Program, and
19 weatherization whenever practicable. The program implementer
20 shall walk the customer through the enrollment process for any
21 programs for which the customer is eligible. The utilities
22 shall also pilot targeting customers with high arrearages,
23 high energy intensity (ratio of energy usage divided by home
24 or unit square footage), or energy assistance programs with
25 energy efficiency offerings, and then track reduction in
26 arrearages as a result of the targeting. This targeting and
HB1700 Enrolled - 526 - LRB104 08228 SPS 18278 b
1 bundling of low-income energy programs shall be offered to
2 both low-income single-family and multifamily customers
3 (owners and residents).
4 The utilities shall invest in health and safety measures
5 appropriate and necessary for comprehensively weatherizing a
6 home or multifamily building, and shall implement a health and
7 safety fund of at least 15% of the total income-qualified
8 weatherization budget that shall be used for the purpose of
9 making grants for technical assistance, construction,
10 reconstruction, improvement, or repair of buildings to
11 facilitate their participation in the energy efficiency
12 programs targeted at low-income single-family and multifamily
13 households. These funds may also be used for the purpose of
14 making grants for technical assistance, construction,
15 reconstruction, improvement, or repair of the following
16 buildings to facilitate their participation in the energy
17 efficiency programs created by this Section: (1) buildings
18 that are owned or operated by registered 501(c)(3) public
19 charities; and (2) day care centers, day care homes, or group
20 day care homes, as defined under 89 Ill. Adm. Code Part 406,
21 407, or 408, respectively.
22 Each electric utility shall assess opportunities to
23 implement cost-effective energy efficiency measures and
24 programs through a public housing authority or authorities
25 located in its service territory. If such opportunities are
26 identified, the utility shall propose such measures and
HB1700 Enrolled - 527 - LRB104 08228 SPS 18278 b
1 programs to address the opportunities. Expenditures to address
2 such opportunities shall be credited toward the minimum
3 procurement and expenditure requirements set forth in this
4 subsection (c).
5 Implementation of energy efficiency measures and programs
6 targeted at low-income households should be contracted, when
7 it is practicable, to independent third parties that have
8 demonstrated capabilities to serve such households, with a
9 preference for not-for-profit entities and government agencies
10 that have existing relationships with or experience serving
11 low-income communities in the State.
12 Each electric utility shall develop and implement
13 reporting procedures that address and assist in determining
14 the amount of energy savings that can be applied to the
15 low-income procurement and expenditure requirements set forth
16 in this subsection (c). Each electric utility shall also track
17 the types and quantities or volumes of insulation and air
18 sealing materials, and their associated energy saving
19 benefits, installed in energy efficiency programs targeted at
20 low-income single-family and multifamily households.
21 The electric utilities shall participate in a low-income
22 energy efficiency accountability committee ("the committee"),
23 which will directly inform the design, implementation, and
24 evaluation of the low-income and public-housing energy
25 efficiency programs. The committee shall be comprised of the
26 electric utilities subject to the requirements of this
HB1700 Enrolled - 528 - LRB104 08228 SPS 18278 b
1 Section, the gas utilities subject to the requirements of
2 Section 8-104 of this Act, the utilities' low-income energy
3 efficiency implementation contractors, nonprofit
4 organizations, community action agencies, advocacy groups,
5 State and local governmental agencies, public-housing
6 organizations, and representatives of community-based
7 organizations, especially those living in or working with
8 environmental justice communities and BIPOC communities. The
9 committee shall be composed of 2 geographically differentiated
10 subcommittees: one for stakeholders in northern Illinois and
11 one for stakeholders in central and southern Illinois. The
12 subcommittees shall meet together at least twice per year.
13 There shall be one statewide leadership committee led by
14 and composed of community-based organizations that are
15 representative of BIPOC and environmental justice communities
16 and that includes equitable representation from BIPOC
17 communities. The leadership committee shall be composed of an
18 equal number of representatives from the 2 subcommittees. The
19 subcommittees shall address specific programs and issues, with
20 the leadership committee convening targeted workgroups as
21 needed. The leadership committee may elect to work with an
22 independent facilitator to solicit and organize feedback,
23 recommendations and meeting participation from a wide variety
24 of community-based stakeholders. If a facilitator is used,
25 they shall be fair and responsive to the needs of all
26 stakeholders involved in the committee.
HB1700 Enrolled - 529 - LRB104 08228 SPS 18278 b
1 All committee meetings must be accessible, with rotating
2 locations if meetings are held in-person, virtual
3 participation options, and materials and agendas circulated in
4 advance.
5 There shall also be opportunities for direct input by
6 committee members outside of committee meetings, such as via
7 individual meetings, surveys, emails and calls, to ensure
8 robust participation by stakeholders with limited capacity and
9 ability to attend committee meetings. Committee meetings shall
10 emphasize opportunities to bundle and coordinate delivery of
11 low-income energy efficiency with other programs that serve
12 low-income communities, such as the Illinois Solar for All
13 Program and bill payment assistance programs. Meetings shall
14 include educational opportunities for stakeholders to learn
15 more about these additional offerings, and the committee shall
16 assist in figuring out the best methods for coordinated
17 delivery and implementation of offerings when serving
18 low-income communities. The committee shall directly and
19 equitably influence and inform utility low-income and
20 public-housing energy efficiency programs and priorities.
21 Participating utilities shall implement recommendations from
22 the committee whenever possible.
23 Participating utilities shall track and report how input
24 from the committee has led to new approaches and changes in
25 their energy efficiency portfolios. This reporting shall occur
26 at committee meetings and in quarterly energy efficiency
HB1700 Enrolled - 530 - LRB104 08228 SPS 18278 b
1 reports to the Stakeholder Advisory Group and Illinois
2 Commerce Commission, and other relevant reporting mechanisms.
3 Participating utilities shall also report on relevant equity
4 data and metrics requested by the committee, such as energy
5 burden data, geographic, racial, and other relevant
6 demographic data on where programs are being delivered and
7 what populations programs are serving.
8 The Illinois Commerce Commission shall oversee and have
9 relevant staff participate in the committee. The committee
10 shall have a budget of 0.25% of each utility's entire
11 efficiency portfolio funding for a given year. The budget
12 shall be overseen by the Commission. The budget shall be used
13 to provide grants for community-based organizations serving on
14 the leadership committee, stipends for community-based
15 organizations participating in the committee, grants for
16 community-based organizations to do energy efficiency outreach
17 and education, and relevant meeting needs as determined by the
18 leadership committee. The education and outreach shall
19 include, but is not limited to, basic energy efficiency
20 education, information about low-income energy efficiency
21 programs, and information on the committee's purpose,
22 structure, and activities.
23 (d) Notwithstanding any other provision of law to the
24 contrary, a utility providing approved energy efficiency
25 measures and, if applicable, demand-response measures in the
26 State shall be permitted to recover all reasonable and
HB1700 Enrolled - 531 - LRB104 08228 SPS 18278 b
1 prudently incurred costs of those measures from all retail
2 customers, except as provided in subsection (l) of this
3 Section, as follows, provided that nothing in this subsection
4 (d) permits the double recovery of such costs from customers:
5 (1) The utility may recover its costs through an
6 automatic adjustment clause tariff filed with and approved
7 by the Commission. The tariff shall be established outside
8 the context of a general rate case. Each year the
9 Commission shall initiate a review to reconcile any
10 amounts collected with the actual costs and to determine
11 the required adjustment to the annual tariff factor to
12 match annual expenditures. To enable the financing of the
13 incremental capital expenditures, including regulatory
14 assets, for electric utilities that serve less than
15 3,000,000 retail customers but more than 500,000 retail
16 customers in the State, the utility's actual year-end
17 capital structure that includes a common equity ratio,
18 excluding goodwill, of up to and including 50% of the
19 total capital structure shall be deemed reasonable and
20 used to set rates.
21 (2) A utility may recover its costs through an energy
22 efficiency formula rate approved by the Commission under a
23 filing under subsections (f) and (g) of this Section,
24 which shall specify the cost components that form the
25 basis of the rate charged to customers with sufficient
26 specificity to operate in a standardized manner and be
HB1700 Enrolled - 532 - LRB104 08228 SPS 18278 b
1 updated annually with transparent information that
2 reflects the utility's actual costs to be recovered during
3 the applicable rate year, which is the period beginning
4 with the first billing day of January and extending
5 through the last billing day of the following December.
6 The energy efficiency formula rate shall be implemented
7 through a tariff filed with the Commission under
8 subsections (f) and (g) of this Section that is consistent
9 with the provisions of this paragraph (2) and that shall
10 be applicable to all delivery services customers. The
11 Commission shall conduct an investigation of the tariff in
12 a manner consistent with the provisions of this paragraph
13 (2), subsections (f) and (g) of this Section, and the
14 provisions of Article IX of this Act to the extent they do
15 not conflict with this paragraph (2). The energy
16 efficiency formula rate approved by the Commission shall
17 remain in effect at the discretion of the utility and
18 shall do the following:
19 (A) Provide for the recovery of the utility's
20 actual costs incurred under this Section that are
21 prudently incurred and reasonable in amount consistent
22 with Commission practice and law. The sole fact that a
23 cost differs from that incurred in a prior calendar
24 year or that an investment is different from that made
25 in a prior calendar year shall not imply the
26 imprudence or unreasonableness of that cost or
HB1700 Enrolled - 533 - LRB104 08228 SPS 18278 b
1 investment.
2 (B) Reflect the utility's actual year-end capital
3 structure for the applicable calendar year, excluding
4 goodwill, subject to a determination of prudence and
5 reasonableness consistent with Commission practice and
6 law. To enable the financing of the incremental
7 capital expenditures, including regulatory assets, for
8 electric utilities that serve less than 3,000,000
9 retail customers but more than 500,000 retail
10 customers in the State, a participating electric
11 utility's actual year-end capital structure that
12 includes a common equity ratio, excluding goodwill, of
13 up to and including 50% of the total capital structure
14 shall be deemed reasonable and used to set rates.
15 (C) Include a cost of equity, which shall be
16 calculated as the sum of the following:
17 (i) the average for the applicable calendar
18 year of the monthly average yields of 30-year U.S.
19 Treasury bonds published by the Board of Governors
20 of the Federal Reserve System in its weekly H.15
21 Statistical Release or successor publication; and
22 (ii) 580 basis points.
23 At such time as the Board of Governors of the
24 Federal Reserve System ceases to include the monthly
25 average yields of 30-year U.S. Treasury bonds in its
26 weekly H.15 Statistical Release or successor
HB1700 Enrolled - 534 - LRB104 08228 SPS 18278 b
1 publication, the monthly average yields of the U.S.
2 Treasury bonds then having the longest duration
3 published by the Board of Governors in its weekly H.15
4 Statistical Release or successor publication shall
5 instead be used for purposes of this paragraph (2).
6 (D) Permit and set forth protocols, subject to a
7 determination of prudence and reasonableness
8 consistent with Commission practice and law, for the
9 following:
10 (i) recovery of incentive compensation expense
11 that is based on the achievement of operational
12 metrics, including metrics related to budget
13 controls, outage duration and frequency, safety,
14 customer service, efficiency and productivity, and
15 environmental compliance; however, this protocol
16 shall not apply if such expense related to costs
17 incurred under this Section is recovered under
18 Article IX or Section 16-108.5 of this Act;
19 incentive compensation expense that is based on
20 net income or an affiliate's earnings per share
21 shall not be recoverable under the energy
22 efficiency formula rate;
23 (ii) recovery of pension and other
24 post-employment benefits expense, provided that
25 such costs are supported by an actuarial study;
26 however, this protocol shall not apply if such
HB1700 Enrolled - 535 - LRB104 08228 SPS 18278 b
1 expense related to costs incurred under this
2 Section is recovered under Article IX or Section
3 16-108.5 of this Act;
4 (iii) recovery of existing regulatory assets
5 over the periods previously authorized by the
6 Commission;
7 (iv) as described in subsection (e),
8 amortization of costs incurred under this Section;
9 and
10 (v) projected, weather normalized billing
11 determinants for the applicable rate year.
12 (E) Provide for an annual reconciliation, as
13 described in paragraph (3) of this subsection (d),
14 less any deferred taxes related to the reconciliation,
15 with interest at an annual rate of return equal to the
16 utility's weighted average cost of capital, including
17 a revenue conversion factor calculated to recover or
18 refund all additional income taxes that may be payable
19 or receivable as a result of that return, of the energy
20 efficiency revenue requirement reflected in rates for
21 each calendar year, beginning with the calendar year
22 in which the utility files its energy efficiency
23 formula rate tariff under this paragraph (2), with
24 what the revenue requirement would have been had the
25 actual cost information for the applicable calendar
26 year been available at the filing date.
HB1700 Enrolled - 536 - LRB104 08228 SPS 18278 b
1 The utility shall file, together with its tariff, the
2 projected costs to be incurred by the utility during the
3 rate year under the utility's multi-year plan approved
4 under subsections (f) and (g) of this Section, including,
5 but not limited to, the projected capital investment costs
6 and projected regulatory asset balances with
7 correspondingly updated depreciation and amortization
8 reserves and expense, that shall populate the energy
9 efficiency formula rate and set the initial rates under
10 the formula.
11 The Commission shall review the proposed tariff in
12 conjunction with its review of a proposed multi-year plan,
13 as specified in paragraph (5) of subsection (g) of this
14 Section. The review shall be based on the same evidentiary
15 standards, including, but not limited to, those concerning
16 the prudence and reasonableness of the costs incurred by
17 the utility, the Commission applies in a hearing to review
18 a filing for a general increase in rates under Article IX
19 of this Act. The initial rates shall take effect beginning
20 with the January monthly billing period following the
21 Commission's approval.
22 The tariff's rate design and cost allocation across
23 customer classes shall be consistent with the utility's
24 automatic adjustment clause tariff in effect on June 1,
25 2017 (the effective date of Public Act 99-906); however,
26 the Commission may revise the tariff's rate design and
HB1700 Enrolled - 537 - LRB104 08228 SPS 18278 b
1 cost allocation in subsequent proceedings under paragraph
2 (3) of this subsection (d).
3 If the energy efficiency formula rate is terminated,
4 the then current rates shall remain in effect until such
5 time as the energy efficiency costs are incorporated into
6 new rates that are set under this subsection (d) or
7 Article IX of this Act, subject to retroactive rate
8 adjustment, with interest, to reconcile rates charged with
9 actual costs.
10 (3) The provisions of this paragraph (3) shall only
11 apply to an electric utility that has elected to file an
12 energy efficiency formula rate under paragraph (2) of this
13 subsection (d). Subsequent to the Commission's issuance of
14 an order approving the utility's energy efficiency formula
15 rate structure and protocols, and initial rates under
16 paragraph (2) of this subsection (d), the utility shall
17 file, on or before June 1 of each year, with the Chief
18 Clerk of the Commission its updated cost inputs to the
19 energy efficiency formula rate for the applicable rate
20 year and the corresponding new charges, as well as the
21 information described in paragraph (9) of subsection (g)
22 of this Section. Each such filing shall conform to the
23 following requirements and include the following
24 information:
25 (A) The inputs to the energy efficiency formula
26 rate for the applicable rate year shall be based on the
HB1700 Enrolled - 538 - LRB104 08228 SPS 18278 b
1 projected costs to be incurred by the utility during
2 the rate year under the utility's multi-year plan
3 approved under subsections (f) and (g) of this
4 Section, including, but not limited to, projected
5 capital investment costs and projected regulatory
6 asset balances with correspondingly updated
7 depreciation and amortization reserves and expense.
8 The filing shall also include a reconciliation of the
9 energy efficiency revenue requirement that was in
10 effect for the prior rate year (as set by the cost
11 inputs for the prior rate year) with the actual
12 revenue requirement for the prior rate year
13 (determined using a year-end rate base) that uses
14 amounts reflected in the applicable FERC Form 1 that
15 reports the actual costs for the prior rate year. Any
16 over-collection or under-collection indicated by such
17 reconciliation shall be reflected as a credit against,
18 or recovered as an additional charge to, respectively,
19 with interest calculated at a rate equal to the
20 utility's weighted average cost of capital approved by
21 the Commission for the prior rate year, the charges
22 for the applicable rate year. Such over-collection or
23 under-collection shall be adjusted to remove any
24 deferred taxes related to the reconciliation, for
25 purposes of calculating interest at an annual rate of
26 return equal to the utility's weighted average cost of
HB1700 Enrolled - 539 - LRB104 08228 SPS 18278 b
1 capital approved by the Commission for the prior rate
2 year, including a revenue conversion factor calculated
3 to recover or refund all additional income taxes that
4 may be payable or receivable as a result of that
5 return. Each reconciliation shall be certified by the
6 participating utility in the same manner that FERC
7 Form 1 is certified. The filing shall also include the
8 charge or credit, if any, resulting from the
9 calculation required by subparagraph (E) of paragraph
10 (2) of this subsection (d).
11 Notwithstanding any other provision of law to the
12 contrary, the intent of the reconciliation is to
13 ultimately reconcile both the revenue requirement
14 reflected in rates for each calendar year, beginning
15 with the calendar year in which the utility files its
16 energy efficiency formula rate tariff under paragraph
17 (2) of this subsection (d), with what the revenue
18 requirement determined using a year-end rate base for
19 the applicable calendar year would have been had the
20 actual cost information for the applicable calendar
21 year been available at the filing date.
22 For purposes of this Section, "FERC Form 1" means
23 the Annual Report of Major Electric Utilities,
24 Licensees and Others that electric utilities are
25 required to file with the Federal Energy Regulatory
26 Commission under the Federal Power Act, Sections 3,
HB1700 Enrolled - 540 - LRB104 08228 SPS 18278 b
1 4(a), 304 and 209, modified as necessary to be
2 consistent with 83 Ill. Adm. Code Part 415 as of May 1,
3 2011. Nothing in this Section is intended to allow
4 costs that are not otherwise recoverable to be
5 recoverable by virtue of inclusion in FERC Form 1.
6 (B) The new charges shall take effect beginning on
7 the first billing day of the following January billing
8 period and remain in effect through the last billing
9 day of the next December billing period regardless of
10 whether the Commission enters upon a hearing under
11 this paragraph (3).
12 (C) The filing shall include relevant and
13 necessary data and documentation for the applicable
14 rate year. Normalization adjustments shall not be
15 required.
16 Within 45 days after the utility files its annual
17 update of cost inputs to the energy efficiency formula
18 rate, the Commission shall with reasonable notice,
19 initiate a proceeding concerning whether the projected
20 costs to be incurred by the utility and recovered during
21 the applicable rate year, and that are reflected in the
22 inputs to the energy efficiency formula rate, are
23 consistent with the utility's approved multi-year plan
24 under subsections (f) and (g) of this Section and whether
25 the costs incurred by the utility during the prior rate
26 year were prudent and reasonable. The Commission shall
HB1700 Enrolled - 541 - LRB104 08228 SPS 18278 b
1 also have the authority to investigate the information and
2 data described in paragraph (9) of subsection (g) of this
3 Section, including the proposed adjustment to the
4 utility's return on equity component of its weighted
5 average cost of capital. During the course of the
6 proceeding, each objection shall be stated with
7 particularity and evidence provided in support thereof,
8 after which the utility shall have the opportunity to
9 rebut the evidence. Discovery shall be allowed consistent
10 with the Commission's Rules of Practice, which Rules of
11 Practice shall be enforced by the Commission or the
12 assigned administrative law judge. The Commission shall
13 apply the same evidentiary standards, including, but not
14 limited to, those concerning the prudence and
15 reasonableness of the costs incurred by the utility,
16 during the proceeding as it would apply in a proceeding to
17 review a filing for a general increase in rates under
18 Article IX of this Act. The Commission shall not, however,
19 have the authority in a proceeding under this paragraph
20 (3) to consider or order any changes to the structure or
21 protocols of the energy efficiency formula rate approved
22 under paragraph (2) of this subsection (d). In a
23 proceeding under this paragraph (3), the Commission shall
24 enter its order no later than the earlier of 195 days after
25 the utility's filing of its annual update of cost inputs
26 to the energy efficiency formula rate or December 15. The
HB1700 Enrolled - 542 - LRB104 08228 SPS 18278 b
1 utility's proposed return on equity calculation, as
2 described in paragraphs (7) through (9) of subsection (g)
3 of this Section, shall be deemed the final, approved
4 calculation on December 15 of the year in which it is filed
5 unless the Commission enters an order on or before
6 December 15, after notice and hearing, that modifies such
7 calculation consistent with this Section. The Commission's
8 determinations of the prudence and reasonableness of the
9 costs incurred, and determination of such return on equity
10 calculation, for the applicable calendar year shall be
11 final upon entry of the Commission's order and shall not
12 be subject to reopening, reexamination, or collateral
13 attack in any other Commission proceeding, case, docket,
14 order, rule, or regulation; however, nothing in this
15 paragraph (3) shall prohibit a party from petitioning the
16 Commission to rehear or appeal to the courts the order
17 under the provisions of this Act.
18 (e) Beginning on June 1, 2017 (the effective date of
19 Public Act 99-906), a utility subject to the requirements of
20 this Section may elect to defer, as a regulatory asset, up to
21 the full amount of its expenditures incurred under this
22 Section for each annual period, including, but not limited to,
23 any expenditures incurred above the funding level set by
24 subsection (f) of this Section for a given year. The total
25 expenditures deferred as a regulatory asset in a given year
26 shall be amortized and recovered over a period that is equal to
HB1700 Enrolled - 543 - LRB104 08228 SPS 18278 b
1 the weighted average of the energy efficiency measure lives
2 implemented for that year that are reflected in the regulatory
3 asset. The unamortized balance shall be recognized as of
4 December 31 for a given year. The utility shall also earn a
5 return on the total of the unamortized balances of all of the
6 energy efficiency regulatory assets, less any deferred taxes
7 related to those unamortized balances, at an annual rate equal
8 to the utility's weighted average cost of capital that
9 includes, based on a year-end capital structure, the utility's
10 actual cost of debt for the applicable calendar year and a cost
11 of equity, which shall be calculated as the sum of the (i) the
12 average for the applicable calendar year of the monthly
13 average yields of 30-year U.S. Treasury bonds published by the
14 Board of Governors of the Federal Reserve System in its weekly
15 H.15 Statistical Release or successor publication; and (ii)
16 580 basis points, including a revenue conversion factor
17 calculated to recover or refund all additional income taxes
18 that may be payable or receivable as a result of that return.
19 Capital investment costs shall be depreciated and recovered
20 over their useful lives consistent with generally accepted
21 accounting principles. The weighted average cost of capital
22 shall be applied to the capital investment cost balance, less
23 any accumulated depreciation and accumulated deferred income
24 taxes, as of December 31 for a given year.
25 When an electric utility creates a regulatory asset under
26 the provisions of this Section, the costs are recovered over a
HB1700 Enrolled - 544 - LRB104 08228 SPS 18278 b
1 period during which customers also receive a benefit which is
2 in the public interest. Accordingly, it is the intent of the
3 General Assembly that an electric utility that elects to
4 create a regulatory asset under the provisions of this Section
5 shall recover all of the associated costs as set forth in this
6 Section. After the Commission has approved the prudence and
7 reasonableness of the costs that comprise the regulatory
8 asset, the electric utility shall be permitted to recover all
9 such costs, and the value and recoverability through rates of
10 the associated regulatory asset shall not be limited, altered,
11 impaired, or reduced.
12 (f) Beginning in 2017, each electric utility shall file an
13 energy efficiency plan with the Commission to meet the energy
14 efficiency standards for the next applicable multi-year period
15 beginning January 1 of the year following the filing,
16 according to the schedule set forth in paragraphs (1) through
17 (3) of this subsection (f). If a utility does not file such a
18 plan on or before the applicable filing deadline for the plan,
19 it shall face a penalty of $100,000 per day until the plan is
20 filed.
21 (1) No later than 30 days after June 1, 2017 (the
22 effective date of Public Act 99-906), each electric
23 utility shall file a 4-year energy efficiency plan
24 commencing on January 1, 2018 that is designed to achieve
25 the cumulative persisting annual savings goals specified
26 in paragraphs (1) through (4) of subsection (b-5) of this
HB1700 Enrolled - 545 - LRB104 08228 SPS 18278 b
1 Section or in paragraphs (1) through (4) of subsection
2 (b-15) of this Section, as applicable, through
3 implementation of energy efficiency measures; however, the
4 goals may be reduced if the utility's expenditures are
5 limited pursuant to subsection (m) of this Section or, for
6 a utility that serves less than 3,000,000 retail
7 customers, if each of the following conditions are met:
8 (A) the plan's analysis and forecasts of the utility's
9 ability to acquire energy savings demonstrate that
10 achievement of such goals is not cost effective; and (B)
11 the amount of energy savings achieved by the utility as
12 determined by the independent evaluator for the most
13 recent year for which savings have been evaluated
14 preceding the plan filing was less than the average annual
15 amount of savings required to achieve the goals for the
16 applicable 4-year plan period. Except as provided in
17 subsection (m) of this Section, annual increases in
18 cumulative persisting annual savings goals during the
19 applicable 4-year plan period shall not be reduced to
20 amounts that are less than the maximum amount of
21 cumulative persisting annual savings that is forecast to
22 be cost-effectively achievable during the 4-year plan
23 period. The Commission shall review any proposed goal
24 reduction as part of its review and approval of the
25 utility's proposed plan.
26 (2) No later than March 1, 2021, each electric utility
HB1700 Enrolled - 546 - LRB104 08228 SPS 18278 b
1 shall file a 4-year energy efficiency plan commencing on
2 January 1, 2022 that is designed to achieve the cumulative
3 persisting annual savings goals specified in paragraphs
4 (5) through (8) of subsection (b-5) of this Section or in
5 paragraphs (5) through (8) of subsection (b-15) of this
6 Section, as applicable, through implementation of energy
7 efficiency measures; however, the goals may be reduced if
8 either (1) clear and convincing evidence demonstrates,
9 through independent analysis, that the expenditure limits
10 in subsection (m) of this Section preclude full
11 achievement of the goals or (2) each of the following
12 conditions are met: (A) the plan's analysis and forecasts
13 of the utility's ability to acquire energy savings
14 demonstrate by clear and convincing evidence and through
15 independent analysis that achievement of such goals is not
16 cost effective; and (B) the amount of energy savings
17 achieved by the utility as determined by the independent
18 evaluator for the most recent year for which savings have
19 been evaluated preceding the plan filing was less than the
20 average annual amount of savings required to achieve the
21 goals for the applicable 4-year plan period. If there is
22 not clear and convincing evidence that achieving the
23 savings goals specified in paragraph (b-5) or (b-15) of
24 this Section is possible both cost-effectively and within
25 the expenditure limits in subsection (m), such savings
26 goals shall not be reduced. Except as provided in
HB1700 Enrolled - 547 - LRB104 08228 SPS 18278 b
1 subsection (m) of this Section, annual increases in
2 cumulative persisting annual savings goals during the
3 applicable 4-year plan period shall not be reduced to
4 amounts that are less than the maximum amount of
5 cumulative persisting annual savings that is forecast to
6 be cost-effectively achievable during the 4-year plan
7 period. The Commission shall review any proposed goal
8 reduction as part of its review and approval of the
9 utility's proposed plan.
10 (3) No later than March 1, 2025, each electric utility
11 shall file a 4-year energy efficiency plan commencing on
12 January 1, 2026 that is designed to achieve the cumulative
13 persisting annual savings goals specified in paragraphs
14 (9) through (12) of subsection (b-5) of this Section or in
15 paragraphs (9) through (12) of subsection (b-15) of this
16 Section, as applicable, through implementation of energy
17 efficiency measures; however, the goals may be reduced if
18 either (1) clear and convincing evidence demonstrates,
19 through independent analysis, that the expenditure limits
20 in subsection (m) of this Section preclude full
21 achievement of the goals or (2) each of the following
22 conditions are met: (A) the plan's analysis and forecasts
23 of the utility's ability to acquire energy savings
24 demonstrate by clear and convincing evidence and through
25 independent analysis that achievement of such goals is not
26 cost effective; and (B) the amount of energy savings
HB1700 Enrolled - 548 - LRB104 08228 SPS 18278 b
1 achieved by the utility as determined by the independent
2 evaluator for the most recent year for which savings have
3 been evaluated preceding the plan filing was less than the
4 average annual amount of savings required to achieve the
5 goals for the applicable 4-year plan period. If there is
6 not clear and convincing evidence that achieving the
7 savings goals specified in paragraphs (b-5) or (b-15) of
8 this Section is possible both cost-effectively and within
9 the expenditure limits in subsection (m), such savings
10 goals shall not be reduced. Except as provided in
11 subsection (m) of this Section, annual increases in
12 cumulative persisting annual savings goals during the
13 applicable 4-year plan period shall not be reduced to
14 amounts that are less than the maximum amount of
15 cumulative persisting annual savings that is forecast to
16 be cost-effectively achievable during the 4-year plan
17 period. The Commission shall review any proposed goal
18 reduction as part of its review and approval of the
19 utility's proposed plan.
20 (4) No later than March 1, 2029, and every 4 years
21 thereafter, each electric utility shall file a 4-year
22 energy efficiency plan commencing on January 1, 2030, and
23 every 4 years thereafter, respectively, that is designed
24 to achieve the cumulative persisting annual savings goals
25 established by the Illinois Commerce Commission pursuant
26 to direction of subsections (b-5) and (b-15) of this
HB1700 Enrolled - 549 - LRB104 08228 SPS 18278 b
1 Section, as applicable, through implementation of energy
2 efficiency measures; however, the goals may be reduced if
3 either (1) clear and convincing evidence and independent
4 analysis demonstrates that the expenditure limits in
5 subsection (m) of this Section preclude full achievement
6 of the goals or (2) each of the following conditions are
7 met: (A) the plan's analysis and forecasts of the
8 utility's ability to acquire energy savings demonstrate by
9 clear and convincing evidence and through independent
10 analysis that achievement of such goals is not
11 cost-effective; and (B) the amount of energy savings
12 achieved by the utility as determined by the independent
13 evaluator for the most recent year for which savings have
14 been evaluated preceding the plan filing was less than the
15 average annual amount of savings required to achieve the
16 goals for the applicable 4-year plan period. If there is
17 not clear and convincing evidence that achieving the
18 savings goals specified in paragraphs (b-5) or (b-15) of
19 this Section is possible both cost-effectively and within
20 the expenditure limits in subsection (m), such savings
21 goals shall not be reduced. Except as provided in
22 subsection (m) of this Section, annual increases in
23 cumulative persisting annual savings goals during the
24 applicable 4-year plan period shall not be reduced to
25 amounts that are less than the maximum amount of
26 cumulative persisting annual savings that is forecast to
HB1700 Enrolled - 550 - LRB104 08228 SPS 18278 b
1 be cost-effectively achievable during the 4-year plan
2 period. The Commission shall review any proposed goal
3 reduction as part of its review and approval of the
4 utility's proposed plan.
5 Each utility's plan shall set forth the utility's
6 proposals to meet the energy efficiency standards identified
7 in subsection (b-5) or (b-15), as applicable and as such
8 standards may have been modified under this subsection (f),
9 taking into account the unique circumstances of the utility's
10 service territory. For those plans commencing on January 1,
11 2018, the Commission shall seek public comment on the
12 utility's plan and shall issue an order approving or
13 disapproving each plan no later than 105 days after June 1,
14 2017 (the effective date of Public Act 99-906). For those
15 plans commencing after December 31, 2021, the Commission shall
16 seek public comment on the utility's plan and shall issue an
17 order approving or disapproving each plan within 6 months
18 after its submission. If the Commission disapproves a plan,
19 the Commission shall, within 30 days, describe in detail the
20 reasons for the disapproval and describe a path by which the
21 utility may file a revised draft of the plan to address the
22 Commission's concerns satisfactorily. If the utility does not
23 refile with the Commission within 60 days, the utility shall
24 be subject to penalties at a rate of $100,000 per day until the
25 plan is filed. This process shall continue, and penalties
26 shall accrue, until the utility has successfully filed a
HB1700 Enrolled - 551 - LRB104 08228 SPS 18278 b
1 portfolio of energy efficiency and demand-response measures.
2 Penalties shall be deposited into the Energy Efficiency Trust
3 Fund.
4 (g) In submitting proposed plans and funding levels under
5 subsection (f) of this Section to meet the savings goals
6 identified in subsection (b-5) or (b-15) of this Section, as
7 applicable, the utility shall:
8 (1) Demonstrate that its proposed energy efficiency
9 measures will achieve the applicable requirements that are
10 identified in subsection (b-5) or (b-15) of this Section,
11 as modified by subsection (f) of this Section.
12 (2) (Blank).
13 (2.5) Demonstrate consideration of program options for
14 (A) advancing new building codes, appliance standards, and
15 municipal regulations governing existing and new building
16 efficiency improvements and (B) supporting efforts to
17 improve compliance with new building codes, appliance
18 standards and municipal regulations, as potentially
19 cost-effective means of acquiring energy savings to count
20 toward savings goals.
21 (3) Demonstrate that its overall portfolio of
22 measures, not including low-income programs described in
23 subsection (c) of this Section, is cost-effective using
24 the total resource cost test or complies with paragraphs
25 (1) through (3) of subsection (f) of this Section and
26 represents a diverse cross-section of opportunities for
HB1700 Enrolled - 552 - LRB104 08228 SPS 18278 b
1 customers of all rate classes, other than those customers
2 described in subsection (l) of this Section, to
3 participate in the programs. Individual measures need not
4 be cost effective.
5 (3.5) Demonstrate that the utility's plan integrates
6 the delivery of energy efficiency programs with natural
7 gas efficiency programs, programs promoting distributed
8 solar, programs promoting demand response and other
9 efforts to address bill payment issues, including, but not
10 limited to, LIHEAP and the Percentage of Income Payment
11 Plan, to the extent such integration is practical and has
12 the potential to enhance customer engagement, minimize
13 market confusion, or reduce administrative costs.
14 (4) Present a third-party energy efficiency
15 implementation program subject to the following
16 requirements:
17 (A) beginning with the year commencing January 1,
18 2019, electric utilities that serve more than
19 3,000,000 retail customers in the State shall fund
20 third-party energy efficiency programs in an amount
21 that is no less than $25,000,000 per year, and
22 electric utilities that serve less than 3,000,000
23 retail customers but more than 500,000 retail
24 customers in the State shall fund third-party energy
25 efficiency programs in an amount that is no less than
26 $8,350,000 per year;
HB1700 Enrolled - 553 - LRB104 08228 SPS 18278 b
1 (B) during 2018, the utility shall conduct a
2 solicitation process for purposes of requesting
3 proposals from third-party vendors for those
4 third-party energy efficiency programs to be offered
5 during one or more of the years commencing January 1,
6 2019, January 1, 2020, and January 1, 2021; for those
7 multi-year plans commencing on January 1, 2022 and
8 January 1, 2026, the utility shall conduct a
9 solicitation process during 2021 and 2025,
10 respectively, for purposes of requesting proposals
11 from third-party vendors for those third-party energy
12 efficiency programs to be offered during one or more
13 years of the respective multi-year plan period; for
14 each solicitation process, the utility shall identify
15 the sector, technology, or geographical area for which
16 it is seeking requests for proposals; the solicitation
17 process must be either for programs that fill gaps in
18 the utility's program portfolio and for programs that
19 target low-income customers, business sectors,
20 building types, geographies, or other specific parts
21 of its customer base with initiatives that would be
22 more effective at reaching these customer segments
23 than the utilities' programs filed in its energy
24 efficiency plans;
25 (C) the utility shall propose the bidder
26 qualifications, performance measurement process, and
HB1700 Enrolled - 554 - LRB104 08228 SPS 18278 b
1 contract structure, which must include a performance
2 payment mechanism and general terms and conditions;
3 the proposed qualifications, process, and structure
4 shall be subject to Commission approval; and
5 (D) the utility shall retain an independent third
6 party to score the proposals received through the
7 solicitation process described in this paragraph (4),
8 rank them according to their cost per lifetime
9 kilowatt-hours saved, and assemble the portfolio of
10 third-party programs.
11 The electric utility shall recover all costs
12 associated with Commission-approved, third-party
13 administered programs regardless of the success of those
14 programs.
15 (4.5) Implement cost-effective demand-response
16 measures to reduce peak demand by 0.1% over the prior year
17 for eligible retail customers, as defined in Section
18 16-111.5 of this Act, and for customers that elect hourly
19 service from the utility pursuant to Section 16-107 of
20 this Act, provided those customers have not been declared
21 competitive. This requirement continues until December 31,
22 2026.
23 (5) Include a proposed or revised cost-recovery tariff
24 mechanism, as provided for under subsection (d) of this
25 Section, to fund the proposed energy efficiency and
26 demand-response measures and to ensure the recovery of the
HB1700 Enrolled - 555 - LRB104 08228 SPS 18278 b
1 prudently and reasonably incurred costs of
2 Commission-approved programs.
3 (6) Provide for an annual independent evaluation of
4 the performance of the cost-effectiveness of the utility's
5 portfolio of measures, as well as a full review of the
6 multi-year plan results of the broader net program impacts
7 and, to the extent practical, for adjustment of the
8 measures on a going-forward basis as a result of the
9 evaluations. The resources dedicated to evaluation shall
10 not exceed 3% of portfolio resources in any given year.
11 (7) For electric utilities that serve more than
12 3,000,000 retail customers in the State:
13 (A) Through December 31, 2025, provide for an
14 adjustment to the return on equity component of the
15 utility's weighted average cost of capital calculated
16 under subsection (d) of this Section:
17 (i) If the independent evaluator determines
18 that the utility achieved a cumulative persisting
19 annual savings that is less than the applicable
20 annual incremental goal, then the return on equity
21 component shall be reduced by a maximum of 200
22 basis points in the event that the utility
23 achieved no more than 75% of such goal. If the
24 utility achieved more than 75% of the applicable
25 annual incremental goal but less than 100% of such
26 goal, then the return on equity component shall be
HB1700 Enrolled - 556 - LRB104 08228 SPS 18278 b
1 reduced by 8 basis points for each percent by
2 which the utility failed to achieve the goal.
3 (ii) If the independent evaluator determines
4 that the utility achieved a cumulative persisting
5 annual savings that is more than the applicable
6 annual incremental goal, then the return on equity
7 component shall be increased by a maximum of 200
8 basis points in the event that the utility
9 achieved at least 125% of such goal. If the
10 utility achieved more than 100% of the applicable
11 annual incremental goal but less than 125% of such
12 goal, then the return on equity component shall be
13 increased by 8 basis points for each percent by
14 which the utility achieved above the goal. If the
15 applicable annual incremental goal was reduced
16 under paragraph (1) or (2) of subsection (f) of
17 this Section, then the following adjustments shall
18 be made to the calculations described in this item
19 (ii):
20 (aa) the calculation for determining
21 achievement that is at least 125% of the
22 applicable annual incremental goal shall use
23 the unreduced applicable annual incremental
24 goal to set the value; and
25 (bb) the calculation for determining
26 achievement that is less than 125% but more
HB1700 Enrolled - 557 - LRB104 08228 SPS 18278 b
1 than 100% of the applicable annual incremental
2 goal shall use the reduced applicable annual
3 incremental goal to set the value for 100%
4 achievement of the goal and shall use the
5 unreduced goal to set the value for 125%
6 achievement. The 8 basis point value shall
7 also be modified, as necessary, so that the
8 200 basis points are evenly apportioned among
9 each percentage point value between 100% and
10 125% achievement.
11 (B) For the period January 1, 2026 through
12 December 31, 2029 and in all subsequent 4-year
13 periods, provide for an adjustment to the return on
14 equity component of the utility's weighted average
15 cost of capital calculated under subsection (d) of
16 this Section:
17 (i) If the independent evaluator determines
18 that the utility achieved a cumulative persisting
19 annual savings that is less than the applicable
20 annual incremental goal, then the return on equity
21 component shall be reduced by a maximum of 200
22 basis points in the event that the utility
23 achieved no more than 66% of such goal. If the
24 utility achieved more than 66% of the applicable
25 annual incremental goal but less than 100% of such
26 goal, then the return on equity component shall be
HB1700 Enrolled - 558 - LRB104 08228 SPS 18278 b
1 reduced by 6 basis points for each percent by
2 which the utility failed to achieve the goal.
3 (ii) If the independent evaluator determines
4 that the utility achieved a cumulative persisting
5 annual savings that is more than the applicable
6 annual incremental goal, then the return on equity
7 component shall be increased by a maximum of 200
8 basis points in the event that the utility
9 achieved at least 134% of such goal. If the
10 utility achieved more than 100% of the applicable
11 annual incremental goal but less than 134% of such
12 goal, then the return on equity component shall be
13 increased by 6 basis points for each percent by
14 which the utility achieved above the goal. If the
15 applicable annual incremental goal was reduced
16 under paragraph (3) of subsection (f) of this
17 Section, then the following adjustments shall be
18 made to the calculations described in this item
19 (ii):
20 (aa) the calculation for determining
21 achievement that is at least 134% of the
22 applicable annual incremental goal shall use
23 the unreduced applicable annual incremental
24 goal to set the value; and
25 (bb) the calculation for determining
26 achievement that is less than 134% but more
HB1700 Enrolled - 559 - LRB104 08228 SPS 18278 b
1 than 100% of the applicable annual incremental
2 goal shall use the reduced applicable annual
3 incremental goal to set the value for 100%
4 achievement of the goal and shall use the
5 unreduced goal to set the value for 134%
6 achievement. The 6 basis point value shall
7 also be modified, as necessary, so that the
8 200 basis points are evenly apportioned among
9 each percentage point value between 100% and
10 134% achievement.
11 (C) Notwithstanding the provisions of
12 subparagraphs (A) and (B) of this paragraph (7), if
13 the applicable annual incremental goal for an electric
14 utility is ever less than 0.6% of deemed average
15 weather normalized sales of electric power and energy
16 during calendar years 2014, 2015, and 2016, an
17 adjustment to the return on equity component of the
18 utility's weighted average cost of capital calculated
19 under subsection (d) of this Section shall be made as
20 follows:
21 (i) If the independent evaluator determines
22 that the utility achieved a cumulative persisting
23 annual savings that is less than would have been
24 achieved had the applicable annual incremental
25 goal been achieved, then the return on equity
26 component shall be reduced by a maximum of 200
HB1700 Enrolled - 560 - LRB104 08228 SPS 18278 b
1 basis points if the utility achieved no more than
2 75% of its applicable annual total savings
3 requirement as defined in paragraph (7.5) of this
4 subsection. If the utility achieved more than 75%
5 of the applicable annual total savings requirement
6 but less than 100% of such goal, then the return on
7 equity component shall be reduced by 8 basis
8 points for each percent by which the utility
9 failed to achieve the goal.
10 (ii) If the independent evaluator determines
11 that the utility achieved a cumulative persisting
12 annual savings that is more than would have been
13 achieved had the applicable annual incremental
14 goal been achieved, then the return on equity
15 component shall be increased by a maximum of 200
16 basis points if the utility achieved at least 125%
17 of its applicable annual total savings
18 requirement. If the utility achieved more than
19 100% of the applicable annual total savings
20 requirement but less than 125% of such goal, then
21 the return on equity component shall be increased
22 by 8 basis points for each percent by which the
23 utility achieved above the applicable annual total
24 savings requirement. If the applicable annual
25 incremental goal was reduced under paragraph (1)
26 or (2) of subsection (f) of this Section, then the
HB1700 Enrolled - 561 - LRB104 08228 SPS 18278 b
1 following adjustments shall be made to the
2 calculations described in this item (ii):
3 (aa) the calculation for determining
4 achievement that is at least 125% of the
5 applicable annual total savings requirement
6 shall use the unreduced applicable annual
7 incremental goal to set the value; and
8 (bb) the calculation for determining
9 achievement that is less than 125% but more
10 than 100% of the applicable annual total
11 savings requirement shall use the reduced
12 applicable annual incremental goal to set the
13 value for 100% achievement of the goal and
14 shall use the unreduced goal to set the value
15 for 125% achievement. The 8 basis point value
16 shall also be modified, as necessary, so that
17 the 200 basis points are evenly apportioned
18 among each percentage point value between 100%
19 and 125% achievement.
20 (7.5) For purposes of this Section, the term
21 "applicable annual incremental goal" means the difference
22 between the cumulative persisting annual savings goal for
23 the calendar year that is the subject of the independent
24 evaluator's determination and the cumulative persisting
25 annual savings goal for the immediately preceding calendar
26 year, as such goals are defined in subsections (b-5) and
HB1700 Enrolled - 562 - LRB104 08228 SPS 18278 b
1 (b-15) of this Section and as these goals may have been
2 modified as provided for under subsection (b-20) and
3 paragraphs (1) through (3) of subsection (f) of this
4 Section. Under subsections (b), (b-5), (b-10), and (b-15)
5 of this Section, a utility must first replace energy
6 savings from measures that have expired before any
7 progress towards achievement of its applicable annual
8 incremental goal may be counted. Savings may expire
9 because measures installed in previous years have reached
10 the end of their lives, because measures installed in
11 previous years are producing lower savings in the current
12 year than in the previous year, or for other reasons
13 identified by independent evaluators. Notwithstanding
14 anything else set forth in this Section, the difference
15 between the actual annual incremental savings achieved in
16 any given year, including the replacement of energy
17 savings that have expired, and the applicable annual
18 incremental goal shall not affect adjustments to the
19 return on equity for subsequent calendar years under this
20 subsection (g).
21 In this Section, "applicable annual total savings
22 requirement" means the total amount of new annual savings
23 that the utility must achieve in any given year to achieve
24 the applicable annual incremental goal. This is equal to
25 the applicable annual incremental goal plus the total new
26 annual savings that are required to replace savings that
HB1700 Enrolled - 563 - LRB104 08228 SPS 18278 b
1 expired in or at the end of the previous year.
2 (8) For electric utilities that serve less than
3 3,000,000 retail customers but more than 500,000 retail
4 customers in the State:
5 (A) Through December 31, 2025, the applicable
6 annual incremental goal shall be compared to the
7 annual incremental savings as determined by the
8 independent evaluator.
9 (i) The return on equity component shall be
10 reduced by 8 basis points for each percent by
11 which the utility did not achieve 84.4% of the
12 applicable annual incremental goal.
13 (ii) The return on equity component shall be
14 increased by 8 basis points for each percent by
15 which the utility exceeded 100% of the applicable
16 annual incremental goal.
17 (iii) The return on equity component shall not
18 be increased or decreased if the annual
19 incremental savings as determined by the
20 independent evaluator is greater than 84.4% of the
21 applicable annual incremental goal and less than
22 100% of the applicable annual incremental goal.
23 (iv) The return on equity component shall not
24 be increased or decreased by an amount greater
25 than 200 basis points pursuant to this
26 subparagraph (A).
HB1700 Enrolled - 564 - LRB104 08228 SPS 18278 b
1 (B) For the period of January 1, 2026 through
2 December 31, 2029 and in all subsequent 4-year
3 periods, the applicable annual incremental goal shall
4 be compared to the annual incremental savings as
5 determined by the independent evaluator.
6 (i) The return on equity component shall be
7 reduced by 6 basis points for each percent by
8 which the utility did not achieve 100% of the
9 applicable annual incremental goal.
10 (ii) The return on equity component shall be
11 increased by 6 basis points for each percent by
12 which the utility exceeded 100% of the applicable
13 annual incremental goal.
14 (iii) The return on equity component shall not
15 be increased or decreased by an amount greater
16 than 200 basis points pursuant to this
17 subparagraph (B).
18 (C) Notwithstanding provisions in subparagraphs
19 (A) and (B) of paragraph (7) of this subsection, if the
20 applicable annual incremental goal for an electric
21 utility is ever less than 0.6% of deemed average
22 weather normalized sales of electric power and energy
23 during calendar years 2014, 2015 and 2016, an
24 adjustment to the return on equity component of the
25 utility's weighted average cost of capital calculated
26 under subsection (d) of this Section shall be made as
HB1700 Enrolled - 565 - LRB104 08228 SPS 18278 b
1 follows:
2 (i) The return on equity component shall be
3 reduced by 8 basis points for each percent by
4 which the utility did not achieve 100% of the
5 applicable annual total savings requirement.
6 (ii) The return on equity component shall be
7 increased by 8 basis points for each percent by
8 which the utility exceeded 100% of the applicable
9 annual total savings requirement.
10 (iii) The return on equity component shall not
11 be increased or decreased by an amount greater
12 than 200 basis points pursuant to this
13 subparagraph (C).
14 (D) If the applicable annual incremental goal was
15 reduced under paragraph (1), (2), (3), or (4) of
16 subsection (f) of this Section, then the following
17 adjustments shall be made to the calculations
18 described in subparagraphs (A), (B), and (C) of this
19 paragraph (8):
20 (i) The calculation for determining
21 achievement that is at least 125% or 134%, as
22 applicable, of the applicable annual incremental
23 goal or the applicable annual total savings
24 requirement, as applicable, shall use the
25 unreduced applicable annual incremental goal to
26 set the value.
HB1700 Enrolled - 566 - LRB104 08228 SPS 18278 b
1 (ii) For the period through December 31, 2025,
2 the calculation for determining achievement that
3 is less than 125% but more than 100% of the
4 applicable annual incremental goal or the
5 applicable annual total savings requirement, as
6 applicable, shall use the reduced applicable
7 annual incremental goal to set the value for 100%
8 achievement of the goal and shall use the
9 unreduced goal to set the value for 125%
10 achievement. The 8 basis point value shall also be
11 modified, as necessary, so that the 200 basis
12 points are evenly apportioned among each
13 percentage point value between 100% and 125%
14 achievement.
15 (iii) For the period of January 1, 2026
16 through December 31, 2029 and all subsequent
17 4-year periods, the calculation for determining
18 achievement that is less than 125% or 134%, as
19 applicable, but more than 100% of the applicable
20 annual incremental goal or the applicable annual
21 total savings requirement, as applicable, shall
22 use the reduced applicable annual incremental goal
23 to set the value for 100% achievement of the goal
24 and shall use the unreduced goal to set the value
25 for 125% achievement. The 6 basis-point value or 8
26 basis-point value, as applicable, shall also be
HB1700 Enrolled - 567 - LRB104 08228 SPS 18278 b
1 modified, as necessary, so that the 200 basis
2 points are evenly apportioned among each
3 percentage point value between 100% and 125% or
4 between 100% and 134% achievement, as applicable.
5 (9) The utility shall submit the energy savings data
6 to the independent evaluator no later than 30 days after
7 the close of the plan year. The independent evaluator
8 shall determine the cumulative persisting annual savings
9 for a given plan year, as well as an estimate of job
10 impacts and other macroeconomic impacts of the efficiency
11 programs for that year, no later than 120 days after the
12 close of the plan year. The utility shall submit an
13 informational filing to the Commission no later than 160
14 days after the close of the plan year that attaches the
15 independent evaluator's final report identifying the
16 cumulative persisting annual savings for the year and
17 calculates, under paragraph (7) or (8) of this subsection
18 (g), as applicable, any resulting change to the utility's
19 return on equity component of the weighted average cost of
20 capital applicable to the next plan year beginning with
21 the January monthly billing period and extending through
22 the December monthly billing period. However, if the
23 utility recovers the costs incurred under this Section
24 under paragraphs (2) and (3) of subsection (d) of this
25 Section, then the utility shall not be required to submit
26 such informational filing, and shall instead submit the
HB1700 Enrolled - 568 - LRB104 08228 SPS 18278 b
1 information that would otherwise be included in the
2 informational filing as part of its filing under paragraph
3 (3) of such subsection (d) that is due on or before June 1
4 of each year.
5 For those utilities that must submit the informational
6 filing, the Commission may, on its own motion or by
7 petition, initiate an investigation of such filing,
8 provided, however, that the utility's proposed return on
9 equity calculation shall be deemed the final, approved
10 calculation on December 15 of the year in which it is filed
11 unless the Commission enters an order on or before
12 December 15, after notice and hearing, that modifies such
13 calculation consistent with this Section.
14 The adjustments to the return on equity component
15 described in paragraphs (7) and (8) of this subsection (g)
16 shall be applied as described in such paragraphs through a
17 separate tariff mechanism, which shall be filed by the
18 utility under subsections (f) and (g) of this Section.
19 (9.5) The utility must demonstrate how it will ensure
20 that program implementation contractors and energy
21 efficiency installation vendors will promote workforce
22 equity and quality jobs.
23 (9.6) Utilities shall collect data necessary to ensure
24 compliance with paragraph (9.5) no less than quarterly and
25 shall communicate progress toward compliance with
26 paragraph (9.5) to program implementation contractors and
HB1700 Enrolled - 569 - LRB104 08228 SPS 18278 b
1 energy efficiency installation vendors no less than
2 quarterly. Utilities shall work with relevant vendors,
3 providing education, training, and other resources needed
4 to ensure compliance and, where necessary, adjusting or
5 terminating work with vendors that cannot assist with
6 compliance.
7 (10) Utilities required to implement efficiency
8 programs under subsections (b-5) and (b-10) shall report
9 annually to the Illinois Commerce Commission and the
10 General Assembly on how hiring, contracting, job training,
11 and other practices related to its energy efficiency
12 programs enhance the diversity of vendors working on such
13 programs. These reports must include data on vendor and
14 employee diversity, including data on the implementation
15 of paragraphs (9.5) and (9.6). If the utility is not
16 meeting the requirements of paragraphs (9.5) and (9.6),
17 the utility shall submit a plan to adjust their activities
18 so that they meet the requirements of paragraphs (9.5) and
19 (9.6) within the following year.
20 (h) No more than 4% of energy efficiency and
21 demand-response program revenue may be allocated for research,
22 development, or pilot deployment of new equipment or measures.
23 Electric utilities shall work with interested stakeholders to
24 formulate a plan for how these funds should be spent,
25 incorporate statewide approaches for these allocations, and
26 file a 4-year plan that demonstrates that collaboration. If a
HB1700 Enrolled - 570 - LRB104 08228 SPS 18278 b
1 utility files a request for modified annual energy savings
2 goals with the Commission, then a utility shall forgo spending
3 portfolio dollars on research and development proposals.
4 (i) When practicable, electric utilities shall incorporate
5 advanced metering infrastructure data into the planning,
6 implementation, and evaluation of energy efficiency measures
7 and programs, subject to the data privacy and confidentiality
8 protections of applicable law.
9 (j) The independent evaluator shall follow the guidelines
10 and use the savings set forth in Commission-approved energy
11 efficiency policy manuals and technical reference manuals, as
12 each may be updated from time to time. Until such time as
13 measure life values for energy efficiency measures implemented
14 for low-income households under subsection (c) of this Section
15 are incorporated into such Commission-approved manuals, the
16 low-income measures shall have the same measure life values
17 that are established for same measures implemented in
18 households that are not low-income households.
19 (k) Notwithstanding any provision of law to the contrary,
20 an electric utility subject to the requirements of this
21 Section may file a tariff cancelling an automatic adjustment
22 clause tariff in effect under this Section or Section 8-103,
23 which shall take effect no later than one business day after
24 the date such tariff is filed. Thereafter, the utility shall
25 be authorized to defer and recover its expenditures incurred
26 under this Section through a new tariff authorized under
HB1700 Enrolled - 571 - LRB104 08228 SPS 18278 b
1 subsection (d) of this Section or in the utility's next rate
2 case under Article IX or Section 16-108.5 of this Act, with
3 interest at an annual rate equal to the utility's weighted
4 average cost of capital as approved by the Commission in such
5 case. If the utility elects to file a new tariff under
6 subsection (d) of this Section, the utility may file the
7 tariff within 10 days after June 1, 2017 (the effective date of
8 Public Act 99-906), and the cost inputs to such tariff shall be
9 based on the projected costs to be incurred by the utility
10 during the calendar year in which the new tariff is filed and
11 that were not recovered under the tariff that was cancelled as
12 provided for in this subsection. Such costs shall include
13 those incurred or to be incurred by the utility under its
14 multi-year plan approved under subsections (f) and (g) of this
15 Section, including, but not limited to, projected capital
16 investment costs and projected regulatory asset balances with
17 correspondingly updated depreciation and amortization reserves
18 and expense. The Commission shall, after notice and hearing,
19 approve, or approve with modification, such tariff and cost
20 inputs no later than 75 days after the utility filed the
21 tariff, provided that such approval, or approval with
22 modification, shall be consistent with the provisions of this
23 Section to the extent they do not conflict with this
24 subsection (k). The tariff approved by the Commission shall
25 take effect no later than 5 days after the Commission enters
26 its order approving the tariff.
HB1700 Enrolled - 572 - LRB104 08228 SPS 18278 b
1 No later than 60 days after the effective date of the
2 tariff cancelling the utility's automatic adjustment clause
3 tariff, the utility shall file a reconciliation that
4 reconciles the moneys collected under its automatic adjustment
5 clause tariff with the costs incurred during the period
6 beginning June 1, 2016 and ending on the date that the electric
7 utility's automatic adjustment clause tariff was cancelled. In
8 the event the reconciliation reflects an under-collection, the
9 utility shall recover the costs as specified in this
10 subsection (k). If the reconciliation reflects an
11 over-collection, the utility shall apply the amount of such
12 over-collection as a one-time credit to retail customers'
13 bills.
14 (l) For the calendar years covered by a multi-year plan
15 commencing after December 31, 2017, subsections (a) through
16 (j) of this Section do not apply to eligible large private
17 energy customers that have chosen to opt out of multi-year
18 plans consistent with this subsection (1).
19 (1) For purposes of this subsection (l), "eligible
20 large private energy customer" means any retail customers,
21 except for federal, State, municipal, and other public
22 customers, of an electric utility that serves more than
23 3,000,000 retail customers, except for federal, State,
24 municipal and other public customers, in the State and
25 whose total highest 30 minute demand was more than 10,000
26 kilowatts, or any retail customers of an electric utility
HB1700 Enrolled - 573 - LRB104 08228 SPS 18278 b
1 that serves less than 3,000,000 retail customers but more
2 than 500,000 retail customers in the State and whose total
3 highest 15 minute demand was more than 10,000 kilowatts.
4 For purposes of this subsection (l), "retail customer" has
5 the meaning set forth in Section 16-102 of this Act.
6 However, for a business entity with multiple sites located
7 in the State, where at least one of those sites qualifies
8 as an eligible large private energy customer, then any of
9 that business entity's sites, properly identified on a
10 form for notice, shall be considered eligible large
11 private energy customers for the purposes of this
12 subsection (l). A determination of whether this subsection
13 is applicable to a customer shall be made for each
14 multi-year plan beginning after December 31, 2017. The
15 criteria for determining whether this subsection (l) is
16 applicable to a retail customer shall be based on the 12
17 consecutive billing periods prior to the start of the
18 first year of each such multi-year plan.
19 (2) Within 45 days after September 15, 2021 (the
20 effective date of Public Act 102-662), the Commission
21 shall prescribe the form for notice required for opting
22 out of energy efficiency programs. The notice must be
23 submitted to the retail electric utility 12 months before
24 the next energy efficiency planning cycle. However, within
25 120 days after the Commission's initial issuance of the
26 form for notice, eligible large private energy customers
HB1700 Enrolled - 574 - LRB104 08228 SPS 18278 b
1 may submit a form for notice to an electric utility. The
2 form for notice for opting out of energy efficiency
3 programs shall include all of the following:
4 (A) a statement indicating that the customer has
5 elected to opt out;
6 (B) the account numbers for the customer accounts
7 to which the opt out shall apply;
8 (C) the mailing address associated with the
9 customer accounts identified under subparagraph (B);
10 (D) an American Society of Heating, Refrigerating,
11 and Air-Conditioning Engineers (ASHRAE) level 2 or
12 higher audit report conducted by an independent
13 third-party expert identifying cost-effective energy
14 efficiency project opportunities that could be
15 invested in over the next 10 years. A retail customer
16 with specialized processes may utilize a self-audit
17 process in lieu of the ASHRAE audit;
18 (E) a description of the customer's plans to
19 reallocate the funds toward internal energy efficiency
20 efforts identified in the subparagraph (D) report,
21 including, but not limited to: (i) strategic energy
22 management or other programs, including descriptions
23 of targeted buildings, equipment and operations; (ii)
24 eligible energy efficiency measures; and (iii)
25 expected energy savings, itemized by technology. If
26 the subparagraph (D) audit report identifies that the
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1 customer currently utilizes the best available energy
2 efficient technology, equipment, programs, and
3 operations, the customer may provide a statement that
4 more efficient technology, equipment, programs, and
5 operations are not reasonably available as a means of
6 satisfying this subparagraph (E); and
7 (F) the effective date of the opt out, which will
8 be the next January 1 following notice of the opt out.
9 (3) Upon receipt of a properly and timely noticed
10 request for opt out submitted by an eligible large private
11 energy customer, the retail electric utility shall grant
12 the request, file the request with the Commission and,
13 beginning January 1 of the following year, the opted out
14 customer shall no longer be assessed the costs of the plan
15 and shall be prohibited from participating in that 4-year
16 plan cycle to give the retail utility the certainty to
17 design program plan proposals.
18 (4) Upon a customer's election to opt out under
19 paragraphs (1) and (2) of this subsection (l) and
20 commencing on the effective date of said opt out, the
21 account properly identified in the customer's notice under
22 paragraph (2) shall not be subject to any cost recovery
23 and shall not be eligible to participate in, or directly
24 benefit from, compliance with energy efficiency cumulative
25 persisting savings requirements under subsections (a)
26 through (j).
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1 (5) A utility's cumulative persisting annual savings
2 targets will exclude any opted out load.
3 (6) The request to opt out is only valid for the
4 requested plan cycle. An eligible large private energy
5 customer must also request to opt out for future energy
6 plan cycles, otherwise the customer will be included in
7 the future energy plan cycle.
8 (m) Notwithstanding the requirements of this Section, as
9 part of a proceeding to approve a multi-year plan under
10 subsections (f) and (g) of this Section if the multi-year plan
11 has been designed to maximize savings, but does not meet the
12 cost cap limitations of this Section, the Commission shall
13 reduce the amount of energy efficiency measures implemented
14 for any single year, and whose costs are recovered under
15 subsection (d) of this Section, by an amount necessary to
16 limit the estimated average net increase due to the cost of the
17 measures to no more than
18 (1) 3.5% for each of the 4 years beginning January 1,
19 2018,
20 (2) (blank),
21 (3) 4% for each of the 4 years beginning January 1,
22 2022,
23 (4) 4.25% for the 4 years beginning January 1, 2026,
24 and
25 (5) 4.25% plus an increase sufficient to account for
26 the rate of inflation between January 1, 2026 and January
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1 1 of the first year of each subsequent 4-year plan cycle,
2 of the average amount paid per kilowatthour by residential
3 eligible retail customers during calendar year 2015. An
4 electric utility may plan to spend up to 10% more in any year
5 during an applicable multi-year plan period to
6 cost-effectively achieve additional savings so long as the
7 average over the applicable multi-year plan period does not
8 exceed the percentages defined in items (1) through (5). To
9 determine the total amount that may be spent by an electric
10 utility in any single year, the applicable percentage of the
11 average amount paid per kilowatthour shall be multiplied by
12 the total amount of energy delivered by such electric utility
13 in the calendar year 2015, adjusted to reflect the proportion
14 of the utility's load attributable to customers that have
15 opted out of subsections (a) through (j) of this Section under
16 subsection (l) of this Section. For purposes of this
17 subsection (m), the amount paid per kilowatthour includes,
18 without limitation, estimated amounts paid for supply,
19 transmission, distribution, surcharges, and add-on taxes. For
20 purposes of this Section, "eligible retail customers" shall
21 have the meaning set forth in Section 16-111.5 of this Act.
22 Once the Commission has approved a plan under subsections (f)
23 and (g) of this Section, no subsequent rate impact
24 determinations shall be made.
25 (n) A utility shall take advantage of the efficiencies
26 available through existing Illinois Home Weatherization
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1 Assistance Program infrastructure and services, such as
2 enrollment, marketing, quality assurance and implementation,
3 which can reduce the need for similar services at a lower cost
4 than utility-only programs, subject to capacity constraints at
5 community action agencies, for both single-family and
6 multifamily weatherization services, to the extent Illinois
7 Home Weatherization Assistance Program community action
8 agencies provide multifamily services. A utility's plan shall
9 demonstrate that in formulating annual weatherization budgets,
10 it has sought input and coordination with community action
11 agencies regarding agencies' capacity to expand and maximize
12 Illinois Home Weatherization Assistance Program delivery using
13 the ratepayer dollars collected under this Section.
14 (Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-30-23;
15 103-613, eff. 7-1-24.)
16 (Text of Section after amendment by P.A. 104-458)
17 Sec. 8-103B. Energy efficiency and demand-response
18 measures.
19 (a) It is the policy of the State that electric utilities
20 are required to use cost-effective energy efficiency and
21 demand-response measures to reduce delivery load. Requiring
22 investment in cost-effective energy efficiency and
23 demand-response measures will reduce direct and indirect costs
24 to consumers by decreasing environmental impacts and by
25 avoiding or delaying the need for new generation,
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1 transmission, and distribution infrastructure. It serves the
2 public interest to allow electric utilities to recover costs
3 for reasonably and prudently incurred expenditures for energy
4 efficiency and demand-response measures. As used in this
5 Section, "cost-effective" means that the measures satisfy the
6 total resource cost test. The low-income measures described in
7 subsection (c) of this Section shall not be required to meet
8 the total resource cost test. For purposes of this Section,
9 the terms "energy-efficiency", "demand-response", "electric
10 utility", and "total resource cost test" have the meanings set
11 forth in the Illinois Power Agency Act. "Black, indigenous,
12 and people of color" and "BIPOC" means people who are members
13 of the groups described in subparagraphs (a) through (e) of
14 paragraph (A) of subsection (1) of Section 2 of the Business
15 Enterprise for Minorities, Women, and Persons with
16 Disabilities Act.
17 (a-5) This Section applies to electric utilities serving
18 more than 500,000 retail customers in the State for those
19 multi-year plans commencing after December 31, 2017.
20 (b) For purposes of this Section, through calendar year
21 2026, electric utilities subject to this Section that serve
22 more than 3,000,000 retail customers in the State shall be
23 deemed to have achieved a cumulative persisting annual savings
24 of 6.6% from energy efficiency measures and programs
25 implemented during the period beginning January 1, 2012 and
26 ending December 31, 2017, which percent is based on the deemed
HB1700 Enrolled - 580 - LRB104 08228 SPS 18278 b
1 average weather normalized sales of electric power and energy
2 during calendar years 2014, 2015, and 2016 of 88,000,000 MWhs.
3 For the purposes of this subsection (b) and subsection (b-5),
4 the 88,000,000 MWhs of deemed electric power and energy sales
5 shall be reduced by the number of MWhs equal to the sum of the
6 annual consumption of customers that have opted out of
7 subsections (a) through (j) of this Section under paragraph
8 (1) of subsection (l) of this Section, as averaged across the
9 calendar years 2014, 2015, and 2016. After 2017, the deemed
10 value of cumulative persisting annual savings from energy
11 efficiency measures and programs implemented during the period
12 beginning January 1, 2012 and ending December 31, 2017, shall
13 be reduced each year, as follows, and the applicable value
14 shall be applied to and count toward the utility's achievement
15 of the cumulative persisting annual savings goals set forth in
16 subsection (b-5):
17 (1) 5.8% deemed cumulative persisting annual savings
18 for the year ending December 31, 2018;
19 (2) 5.2% deemed cumulative persisting annual savings
20 for the year ending December 31, 2019;
21 (3) 4.5% deemed cumulative persisting annual savings
22 for the year ending December 31, 2020;
23 (4) 4.0% deemed cumulative persisting annual savings
24 for the year ending December 31, 2021;
25 (5) 3.5% deemed cumulative persisting annual savings
26 for the year ending December 31, 2022;
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1 (6) 3.1% deemed cumulative persisting annual savings
2 for the year ending December 31, 2023;
3 (7) 2.8% deemed cumulative persisting annual savings
4 for the year ending December 31, 2024;
5 (8) 2.5% deemed cumulative persisting annual savings
6 for the year ending December 31, 2025; and
7 (9) 2.3% deemed cumulative persisting annual savings
8 for the year ending December 31, 2026.
9 For purposes of this Section, "cumulative persisting
10 annual savings" means the total electric energy savings in a
11 given year from measures installed in that year or in previous
12 years, but no earlier than January 1, 2012, that are still
13 operational and providing savings in that year because the
14 measures have not yet reached the end of their useful lives.
15 (b-5) Beginning in 2018 and through calendar year 2026,
16 electric utilities subject to this Section that serve more
17 than 3,000,000 retail customers in the State shall achieve the
18 following cumulative persisting annual savings goals, as
19 modified by subsection (f) of this Section and as compared to
20 the deemed baseline of 88,000,000 MWhs of electric power and
21 energy sales set forth in subsection (b), as reduced by the
22 number of MWhs equal to the sum of the annual consumption of
23 customers that have opted out of subsections (a) through (j)
24 of this Section under paragraph (1) of subsection (l) of this
25 Section as averaged across the calendar years 2014, 2015, and
26 2016, through the implementation of energy efficiency measures
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1 during the applicable year and in prior years, but no earlier
2 than January 1, 2012:
3 (1) 7.8% cumulative persisting annual savings for the
4 year ending December 31, 2018;
5 (2) 9.1% cumulative persisting annual savings for the
6 year ending December 31, 2019;
7 (3) 10.4% cumulative persisting annual savings for the
8 year ending December 31, 2020;
9 (4) 11.8% cumulative persisting annual savings for the
10 year ending December 31, 2021;
11 (5) 13.1% cumulative persisting annual savings for the
12 year ending December 31, 2022;
13 (6) 14.4% cumulative persisting annual savings for the
14 year ending December 31, 2023;
15 (7) 15.7% cumulative persisting annual savings for the
16 year ending December 31, 2024;
17 (8) 17% cumulative persisting annual savings for the
18 year ending December 31, 2025; and
19 (9) 17.9% cumulative persisting annual savings for the
20 year ending December 31, 2026.
21 (b-10) For purposes of this Section, through calendar year
22 2026, electric utilities subject to this Section that serve
23 less than 3,000,000 retail customers but more than 500,000
24 retail customers in the State shall be deemed to have achieved
25 a cumulative persisting annual savings of 6.6% from energy
26 efficiency measures and programs implemented during the period
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1 beginning January 1, 2012 and ending December 31, 2017, which
2 is based on the deemed average weather normalized sales of
3 electric power and energy during calendar years 2014, 2015,
4 and 2016 of 36,900,000 MWhs. For the purposes of this
5 subsection (b-10) and subsection (b-15), the 36,900,000 MWhs
6 of deemed electric power and energy sales shall be reduced by
7 the number of MWhs equal to the sum of the annual consumption
8 of customers that have opted out of subsections (a) through
9 (j) of this Section under paragraph (1) of subsection (l) of
10 this Section, as averaged across the calendar years 2014,
11 2015, and 2016. After 2017, the deemed value of cumulative
12 persisting annual savings from energy efficiency measures and
13 programs implemented during the period beginning January 1,
14 2012 and ending December 31, 2017, shall be reduced each year,
15 as follows, and the applicable value shall be applied to and
16 count toward the utility's achievement of the cumulative
17 persisting annual savings goals set forth in subsection
18 (b-15):
19 (1) 5.8% deemed cumulative persisting annual savings
20 for the year ending December 31, 2018;
21 (2) 5.2% deemed cumulative persisting annual savings
22 for the year ending December 31, 2019;
23 (3) 4.5% deemed cumulative persisting annual savings
24 for the year ending December 31, 2020;
25 (4) 4.0% deemed cumulative persisting annual savings
26 for the year ending December 31, 2021;
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1 (5) 3.5% deemed cumulative persisting annual savings
2 for the year ending December 31, 2022;
3 (6) 3.1% deemed cumulative persisting annual savings
4 for the year ending December 31, 2023;
5 (7) 2.8% deemed cumulative persisting annual savings
6 for the year ending December 31, 2024;
7 (8) 2.5% deemed cumulative persisting annual savings
8 for the year ending December 31, 2025; and
9 (9) 2.3% deemed cumulative persisting annual savings
10 for the year ending December 31, 2026.
11 (b-15) Beginning in 2018 and through calendar year 2026,
12 electric utilities subject to this Section that serve less
13 than 3,000,000 retail customers but more than 500,000 retail
14 customers in the State shall achieve the following cumulative
15 persisting annual savings goals, as modified by subsection
16 (b-20) and subsection (f) of this Section and as compared to
17 the deemed baseline as reduced by the number of MWhs equal to
18 the sum of the annual consumption of customers that have opted
19 out of subsections (a) through (j) of this Section under
20 paragraph (1) of subsection (l) of this Section as averaged
21 across the calendar years 2014, 2015, and 2016, through the
22 implementation of energy efficiency measures during the
23 applicable year and in prior years, but no earlier than
24 January 1, 2012:
25 (1) 7.4% cumulative persisting annual savings for the
26 year ending December 31, 2018;
HB1700 Enrolled - 585 - LRB104 08228 SPS 18278 b
1 (2) 8.2% cumulative persisting annual savings for the
2 year ending December 31, 2019;
3 (3) 9.0% cumulative persisting annual savings for the
4 year ending December 31, 2020;
5 (4) 9.8% cumulative persisting annual savings for the
6 year ending December 31, 2021;
7 (5) 10.6% cumulative persisting annual savings for the
8 year ending December 31, 2022;
9 (6) 11.4% cumulative persisting annual savings for the
10 year ending December 31, 2023;
11 (7) 12.2% cumulative persisting annual savings for the
12 year ending December 31, 2024;
13 (8) 13% cumulative persisting annual savings for the
14 year ending December 31, 2025; and
15 (9) 13.6% cumulative persisting annual savings for the
16 year ending December 31, 2026.
17 (b-16) In 2027 and each year thereafter, each electric
18 utility subject to this Section shall achieve the following
19 savings goals:
20 (1) A utility that serves more than 3,000,000 retail
21 customers in the State must achieve incremental annual
22 energy savings for customers in an amount that is equal to
23 2% of the utility's average annual electricity sales from
24 2021 through 2023 to customers as reduced by the number of
25 MWhs equal to the sum of the annual consumption of
26 customers that have opted out of subsections (a) through
HB1700 Enrolled - 586 - LRB104 08228 SPS 18278 b
1 (j) of this Section under paragraph (1) of subsection (l)
2 of this Section. A utility that serves less than 3,000,000
3 retail customers but more than 500,000 retail customers in
4 the State must achieve incremental annual energy savings
5 for customers in an amount that is equal to 1.4% in 2027,
6 1.7% in 2028, and 2% in 2029 and every year thereafter of
7 the utility's average annual electricity sales from 2021
8 through 2023 to customers as reduced by the number of MWhs
9 equal to the sum of the annual consumption of customers
10 that have opted out of subsections (a) through (j) of this
11 Section under paragraph (1) of subsection (l) of this
12 Section. The incremental annual energy savings
13 requirements set forth in this paragraph (1) may be
14 reduced by 0.025 percentage points for every percentage
15 point increase, above the 25% minimum to be targeted at
16 low-income households as specified in paragraph (c) of
17 this Section, in the portion of total efficiency program
18 spending that is on low-income or moderate-income
19 efficiency programs. The incremental annual energy savings
20 requirement shall not be reduced to a level less than 0.25
21 percentage points less than the energy savings requirement
22 applicable to the calendar year, even if the sum of
23 low-income spending and moderate-income spending is
24 greater than 35% of total spending.
25 (2) A utility that serves less than 3,000,000 retail
26 customers but more than 500,000 retail customers in the
HB1700 Enrolled - 587 - LRB104 08228 SPS 18278 b
1 State must achieve an incremental annual coincident peak
2 demand savings goal from energy efficiency measures
3 installed as a result of the utility's programs by
4 customers in an amount that is equal to the energy savings
5 goal from paragraph (1) of this Section divided by the
6 actual average ratio of kilowatt-hour savings to
7 coincident peak demand reduction achieved by the utility
8 through its energy efficiency programs in 2023. If the
9 season in which coincident peak demands are experienced,
10 the hours of the day that peak demands are experienced,
11 and the methods by which peak demand impacts from
12 efficiency measures are estimated are different in the
13 future than when 2023 peak demand impacts were originally
14 estimated, the 2023 peak demand impacts shall be
15 recomputed using such updated peak definitions and
16 estimation methods for the purpose of establishing future
17 coincident peak demand savings goals. To the extent that a
18 utility counts either improvements to the efficiency of
19 the use of gas and other fuels or the electrification of
20 gas and other fuels toward its energy savings goal, as
21 permitted under paragraphs (b-25) and (b-27) of this
22 Section, it must estimate the actual impacts on coincident
23 peak demand from such measures and count them, whether
24 positive or negative, toward its coincident peak demand
25 savings goal. Only coincident peak demand savings from
26 efficiency measures shall count toward this goal. To the
HB1700 Enrolled - 588 - LRB104 08228 SPS 18278 b
1 extent that some efficiency measures enable demand
2 response, only the peak demand savings from the energy
3 efficiency upgrade shall count toward the goal. Nothing in
4 this Section shall limit the ability of peak demand
5 savings from such enabled demand-response initiatives to
6 count for other, non-energy efficiency performance
7 standard performance metrics established for the utility.
8 (3) Each utility's incremental annual energy savings,
9 and coincident peak demand savings if a utility serves
10 less than 3,000,000 retail customers but more than 500,000
11 retail customers in the State, must be achieved with an
12 average savings life of at least 12 years. In no event can
13 more than one-fifth of the incremental annual energy
14 savings or the coincident peak demand savings counted
15 toward a utility's annual savings goal in any given year
16 be derived from efficiency measures with average savings
17 lives of less than 5 years. Average savings lives may be
18 shorter than the average operational lives of measures
19 installed if the measures do not produce savings in every
20 year in which the measures operate or if the savings that
21 measures produce decline during the measures' operational
22 lives.
23 For the purposes of this Section, "incremental annual
24 energy savings" means the total electric energy savings
25 from all measures installed in a calendar year that will
26 be realized within 12 months of each measure's
HB1700 Enrolled - 589 - LRB104 08228 SPS 18278 b
1 installation; "moderate-income" means: (i) for an electric
2 utility that serves less than 3,000,000 retail customers
3 but more than 500,000 retail customers in the State,
4 income between 80% of area median income and 300% of the
5 federal poverty limit; and (ii) for an electric utility
6 that serves more than 3,000,000 retail customers in the
7 State, income between 80% of area median income and 100%
8 of area median income; "incremental annual coincident peak
9 demand savings" means the total coincident peak reduction
10 from all energy efficiency measures installed in a
11 calendar year that will be realized within 12 months of
12 each measure's installation; "average savings life" means
13 the lifetime energy or coincident peak demand savings that
14 would be realized as a result of a utility's efficiency
15 programs divided by the incremental annual energy or
16 coincident peak demand savings such programs produce.
17 (b-20) Each electric utility subject to this Section may
18 include cost-effective voltage optimization measures in its
19 plans submitted under subsections (f) and (g) of this Section,
20 and the costs incurred by a utility to implement the measures
21 under a Commission-approved plan shall be recovered under the
22 provisions of Article IX or Section 16-108.5 of this Act. For
23 purposes of this Section, the measure life of voltage
24 optimization measures shall be 15 years. The measure life
25 period is independent of the depreciation rate of the voltage
26 optimization assets deployed. Utilities may claim savings from
HB1700 Enrolled - 590 - LRB104 08228 SPS 18278 b
1 voltage optimization on circuits for more than 15 years if
2 they can demonstrate that they have made additional
3 investments necessary to enable voltage optimization savings
4 to continue beyond 15 years. Such demonstrations must be
5 subject to the review of independent evaluation.
6 Within 270 days after June 1, 2017 (the effective date of
7 Public Act 99-906), an electric utility that serves less than
8 3,000,000 retail customers but more than 500,000 retail
9 customers in the State shall file a plan with the Commission
10 that identifies the cost-effective voltage optimization
11 investment the electric utility plans to undertake through
12 December 31, 2024. The Commission, after notice and hearing,
13 shall approve or approve with modification the plan within 120
14 days after the plan's filing and, in the order approving or
15 approving with modification the plan, the Commission shall
16 adjust the applicable cumulative persisting annual savings
17 goals set forth in subsection (b-15) to reflect any amount of
18 cost-effective energy savings approved by the Commission that
19 is greater than or less than the following cumulative
20 persisting annual savings values attributable to voltage
21 optimization for the applicable year:
22 (1) 0.0% of cumulative persisting annual savings for
23 the year ending December 31, 2018;
24 (2) 0.17% of cumulative persisting annual savings for
25 the year ending December 31, 2019;
26 (3) 0.17% of cumulative persisting annual savings for
HB1700 Enrolled - 591 - LRB104 08228 SPS 18278 b
1 the year ending December 31, 2020;
2 (4) 0.33% of cumulative persisting annual savings for
3 the year ending December 31, 2021;
4 (5) 0.5% of cumulative persisting annual savings for
5 the year ending December 31, 2022;
6 (6) 0.67% of cumulative persisting annual savings for
7 the year ending December 31, 2023;
8 (7) 0.83% of cumulative persisting annual savings for
9 the year ending December 31, 2024; and
10 (8) 1.0% of cumulative persisting annual savings for
11 the year ending December 31, 2025 and all subsequent
12 years.
13 (b-25) In the event an electric utility jointly offers an
14 energy efficiency measure or program with a gas utility under
15 plans approved under this Section and Section 8-104 of this
16 Act, the electric utility may continue offering the program,
17 including the gas energy efficiency measures, in the event the
18 gas utility discontinues funding the program. In that event,
19 the energy savings value associated with such other fuels
20 shall be converted to electric energy savings on an equivalent
21 Btu basis for the premises. However, the electric utility
22 shall prioritize programs for low-income residential customers
23 to the extent practicable. An electric utility may recover the
24 costs of offering the gas energy efficiency measures under
25 this subsection (b-25).
26 For those energy efficiency measures or programs that save
HB1700 Enrolled - 592 - LRB104 08228 SPS 18278 b
1 both electricity and other fuels but are not jointly offered
2 with a gas utility under plans approved under this Section and
3 Section 8-104 or not offered with an affiliated gas utility
4 under paragraph (6) of subsection (f) of Section 8-104 of this
5 Act, the electric utility may count savings of fuels other
6 than electricity toward the achievement of its annual savings
7 goal, and the energy savings value associated with such other
8 fuels shall be converted to electric energy savings on an
9 equivalent Btu basis at the premises.
10 For an electric utility that serves more than 3,000,000
11 retail customers in the State, on and after January 1, 2027,
12 the electric utility may only count savings of other fuels
13 under this subsection (b-25) toward the achievement of its
14 annual electric energy savings goal when such other fuel
15 savings are from weatherization measures that reduce heat loss
16 through the building envelope, insulating mechanical systems,
17 or the heating distribution system, including, but not limited
18 to, air sealing and building shell measures. This limitation
19 on counting other fuel savings from efficiency measures toward
20 a utility's energy savings goal shall not affect the utility's
21 ability to claim savings from electrification measures
22 installed pursuant to the requirements in subsection (b-27).
23 In no event shall more than 10% of each year's applicable
24 annual total savings requirement, as defined in paragraph
25 (7.5) of subsection (g) of this Section be met through savings
26 of fuels other than electricity. For an electric utility that
HB1700 Enrolled - 593 - LRB104 08228 SPS 18278 b
1 serves more than 3,000,000 retail customers in the State, in
2 no event shall more than 30% of each year's incremental annual
3 energy savings requirement, as defined in subsection (b-16) of
4 this Section, be met through savings of fuels other than
5 electricity. For an electric utility that serves less than
6 3,000,000 retail customers but more than 500,000 retail
7 customers in the State, in no event shall more than 20% of each
8 year's incremental annual energy savings requirement, as
9 defined in subsection (b-16) of this Section, be met through
10 savings of fuels other than electricity.
11 (b-27) Beginning in 2022, an electric utility may offer
12 and promote measures that electrify space heating, water
13 heating, cooling, drying, cooking, industrial processes, and
14 other building and industrial end uses that would otherwise be
15 served by combustion of fossil fuel at the premises, provided
16 that the electrification measures reduce total energy
17 consumption at the premises. The electric utility may count
18 the reduction in energy consumption at the premises toward
19 achievement of its annual savings goals. The reduction in
20 energy consumption at the premises shall be calculated as the
21 difference between: (A) the reduction in Btu consumption of
22 fossil fuels as a result of electrification, converted to
23 kilowatt-hour equivalents by dividing by 3,412 Btus per
24 kilowatt hour; and (B) the increase in kilowatt hours of
25 electricity consumption resulting from the displacement of
26 fossil fuel consumption as a result of electrification. An
HB1700 Enrolled - 594 - LRB104 08228 SPS 18278 b
1 electric utility may recover the costs of offering and
2 promoting electrification measures under this subsection
3 (b-27).
4 At least 33% of all costs of offering and promoting
5 electrification measures under this subsection (b-27) must be
6 for supporting installation of electrification measures
7 through programs exclusively targeted to low-income
8 households. The percentage requirement may be reduced if the
9 utility can demonstrate that it is not possible to achieve the
10 level of low-income electrification spending, while supporting
11 programs for non-low-income residential and business
12 electrification, because of limitations regarding the number
13 of low-income households in its service territory that would
14 be able to meet program eligibility requirements set forth in
15 the multi-year energy efficiency plan. If the 33% low-income
16 electrification spending requirement is reduced, the utility
17 must prioritize support of low-income electrification in
18 housing that meets program eligibility requirements over
19 electrification spending on non-low-income residential or
20 business customers.
21 The ratio of spending on electrification measures targeted
22 to low-income, multifamily buildings to spending on
23 electrification measures targeted to low-income, single-family
24 buildings shall be designed to achieve levels of
25 electrification savings from each building type that are
26 approximately proportional to the magnitude of cost-effective
HB1700 Enrolled - 595 - LRB104 08228 SPS 18278 b
1 electrification savings potential in each building type.
2 In no event shall electrification savings counted toward
3 each year's applicable annual total savings requirement, as
4 defined in paragraph (7.5) of subsection (g) of this Section,
5 or counted toward each year's incremental annual energy
6 savings, as defined in paragraph (b-16) of this Section, be
7 greater than:
8 (1) 5% per year for each year from 2022 through 2025;
9 (2) 20% per year for 2026 and all subsequent years;
10 and
11 (3) (blank).
12 The limitations on electrification savings that may be counted
13 toward a utility's annual savings goals are separate from and
14 in addition to the subsection (b-25) limitations governing the
15 counting of the other fuel savings resulting from efficiency
16 measures and programs.
17 As part of the annual informational filing to the
18 Commission that is required under paragraph (9) of subsection
19 (g) of this Section, each utility shall identify the specific
20 electrification measures offered under this subsection (b-27);
21 the quantity of each electrification measure that was
22 installed by its customers; the average total cost, average
23 utility cost, average reduction in fossil fuel consumption,
24 and average increase in electricity consumption associated
25 with each electrification measure; the portion of
26 installations of each electrification measure that were in
HB1700 Enrolled - 596 - LRB104 08228 SPS 18278 b
1 low-income single-family housing, low-income multifamily
2 housing, non-low-income single-family housing, non-low-income
3 multifamily housing, commercial buildings, and industrial
4 facilities; and the quantity of savings associated with each
5 measure category in each customer category that are being
6 counted toward the utility's applicable annual total savings
7 requirement or counted toward each year's incremental annual
8 energy savings, as defined in paragraph (b-16) of this
9 Section. Prior to installing or promoting electrification
10 measures, the utility shall provide customers with estimates
11 of the impact of the new measures on the customer's average
12 monthly electric bill and total annual energy expenses.
13 (c) Electric utilities shall be responsible for overseeing
14 the design, development, and filing of energy efficiency plans
15 with the Commission and may, as part of that implementation,
16 outsource various aspects of program development and
17 implementation. A minimum of 10%, for electric utilities that
18 serve more than 3,000,000 retail customers in the State, and a
19 minimum of 7%, for electric utilities that serve less than
20 3,000,000 retail customers but more than 500,000 retail
21 customers in the State, of the utility's entire portfolio
22 funding level for a given year shall be used to procure
23 cost-effective energy efficiency measures from units of local
24 government, municipal corporations, school districts, public
25 housing, public institutions of higher education, and
26 community college districts, provided that a minimum
HB1700 Enrolled - 597 - LRB104 08228 SPS 18278 b
1 percentage of available funds shall be used to procure energy
2 efficiency from public housing, which percentage shall be
3 equal to public housing's share of public building energy
4 consumption.
5 The utilities shall also implement energy efficiency
6 measures targeted at low-income households, which, for
7 purposes of this Section, shall be defined as households at or
8 below 80% of area median income, and expenditures to implement
9 the measures shall be no less than 25% of total energy
10 efficiency program spending approved by the Commission
11 pursuant to review of plans filed under subsection (f) of this
12 Section The ratio of spending on efficiency programs targeted
13 at low-income multifamily buildings to spending on efficiency
14 programs targeted at low-income single-family buildings shall
15 be designed to achieve levels of savings from each building
16 type that are approximately proportional to the magnitude of
17 cost-effective lifetime savings potential in each building
18 type. Investment in low-income whole-building weatherization
19 programs shall constitute a minimum of 80% of a utility's
20 total budget specifically dedicated to serving low-income
21 customers.
22 The utilities shall work to bundle low-income energy
23 efficiency offerings with other programs that serve low-income
24 households to maximize the benefits going to these households.
25 The utilities shall market and implement low-income energy
26 efficiency programs in coordination with low-income assistance
HB1700 Enrolled - 598 - LRB104 08228 SPS 18278 b
1 programs, the Illinois Solar for All Program, and
2 weatherization whenever practicable. The program implementer
3 shall walk the customer through the enrollment process for any
4 programs for which the customer is eligible. The utilities
5 shall also pilot targeting customers with high arrearages,
6 high energy intensity (ratio of energy usage divided by home
7 or unit square footage), or energy assistance programs with
8 energy efficiency offerings, and then track reduction in
9 arrearages as a result of the targeting. This targeting and
10 bundling of low-income energy programs shall be offered to
11 both low-income single-family and multifamily customers
12 (owners and residents).
13 The utilities shall invest in health and safety measures
14 appropriate and necessary for comprehensively weatherizing a
15 home or multifamily building, and shall implement a health and
16 safety fund of at least 15% of the total income-qualified
17 weatherization budget that shall be used for the purpose of
18 making grants for technical assistance, construction,
19 reconstruction, improvement, or repair of buildings to
20 facilitate their participation in the energy efficiency
21 programs targeted at low-income single-family and multifamily
22 households. These funds may also be used for the purpose of
23 making grants for technical assistance, construction,
24 reconstruction, improvement, or repair of the following
25 buildings to facilitate their participation in the energy
26 efficiency programs created by this Section: (1) buildings
HB1700 Enrolled - 599 - LRB104 08228 SPS 18278 b
1 that are owned or operated by registered 501(c)(3) public
2 charities; and (2) day care centers, day care homes, or group
3 day care homes, as defined under 89 Ill. Adm. Code Part 406,
4 407, or 408, respectively.
5 Each electric utility shall assess opportunities to
6 implement cost-effective energy efficiency measures and
7 programs through a public housing authority or authorities
8 located in its service territory. If such opportunities are
9 identified, the utility shall propose such measures and
10 programs to address the opportunities. Expenditures to address
11 such opportunities shall be credited toward the minimum
12 procurement and expenditure requirements set forth in this
13 subsection (c).
14 Implementation of energy efficiency measures and programs
15 targeted at low-income households should be contracted, when
16 it is practicable, to independent third parties that have
17 demonstrated capabilities to serve such households, with a
18 preference for not-for-profit entities and government agencies
19 that have existing relationships with or experience serving
20 low-income communities in the State.
21 Each electric utility shall develop and implement
22 reporting procedures that address and assist in determining
23 the amount of energy savings that can be applied to the
24 low-income procurement and expenditure requirements set forth
25 in this subsection (c). Each electric utility shall also track
26 the types and quantities or volumes of insulation and air
HB1700 Enrolled - 600 - LRB104 08228 SPS 18278 b
1 sealing materials, and their associated energy saving
2 benefits, installed in energy efficiency programs targeted at
3 low-income single-family and multifamily households.
4 The electric utilities shall participate in a low-income
5 energy efficiency accountability committee ("the committee"),
6 which will directly inform the design, implementation, and
7 evaluation of the low-income and public-housing energy
8 efficiency programs. The committee shall be comprised of the
9 electric utilities subject to the requirements of this
10 Section, the gas utilities subject to the requirements of
11 Section 8-104 of this Act, the utilities' low-income energy
12 efficiency implementation contractors, nonprofit
13 organizations, community action agencies, advocacy groups,
14 State and local governmental agencies, public-housing
15 organizations, and representatives of community-based
16 organizations, especially those living in or working with
17 environmental justice communities and BIPOC communities. The
18 committee shall be composed of 2 geographically differentiated
19 subcommittees: one for stakeholders in northern Illinois and
20 one for stakeholders in central and southern Illinois. The
21 subcommittees shall meet together at least twice per year.
22 There shall be one statewide leadership committee led by
23 and composed of community-based organizations that are
24 representative of BIPOC and environmental justice communities
25 and that includes equitable representation from BIPOC
26 communities. The leadership committee shall be composed of an
HB1700 Enrolled - 601 - LRB104 08228 SPS 18278 b
1 equal number of representatives from the 2 subcommittees. The
2 subcommittees shall address specific programs and issues, with
3 the leadership committee convening targeted workgroups as
4 needed. The leadership committee may elect to work with an
5 independent facilitator to solicit and organize feedback,
6 recommendations and meeting participation from a wide variety
7 of community-based stakeholders. If a facilitator is used,
8 they shall be fair and responsive to the needs of all
9 stakeholders involved in the committee. For a utility that
10 serves more than 3,000,000 retail customers in the State, if a
11 facilitator is used, they shall be retained by Commission
12 staff.
13 All committee meetings must be accessible, with rotating
14 locations if meetings are held in-person, virtual
15 participation options, and materials and agendas circulated in
16 advance.
17 There shall also be opportunities for direct input by
18 committee members outside of committee meetings, such as via
19 individual meetings, surveys, emails and calls, to ensure
20 robust participation by stakeholders with limited capacity and
21 ability to attend committee meetings. Committee meetings shall
22 emphasize opportunities to bundle and coordinate delivery of
23 low-income energy efficiency with other programs that serve
24 low-income communities, such as the Illinois Solar for All
25 Program and bill payment assistance programs. Meetings shall
26 include educational opportunities for stakeholders to learn
HB1700 Enrolled - 602 - LRB104 08228 SPS 18278 b
1 more about these additional offerings, and the committee shall
2 assist in figuring out the best methods for coordinated
3 delivery and implementation of offerings when serving
4 low-income communities. The committee shall directly and
5 equitably influence and inform utility low-income and
6 public-housing energy efficiency programs and priorities.
7 Participating utilities shall implement recommendations from
8 the committee whenever possible.
9 Participating utilities shall track and report how input
10 from the committee has led to new approaches and changes in
11 their energy efficiency portfolios. This reporting shall occur
12 at committee meetings and in quarterly energy efficiency
13 reports to the Stakeholder Advisory Group and Illinois
14 Commerce Commission, and other relevant reporting mechanisms.
15 Participating utilities shall also report on relevant equity
16 data and metrics requested by the committee, such as energy
17 burden data, geographic, racial, and other relevant
18 demographic data on where programs are being delivered and
19 what populations programs are serving.
20 The Illinois Commerce Commission shall oversee and have
21 relevant staff participate in the committee. The committee
22 shall have a budget of 0.25% of each utility's entire
23 efficiency portfolio funding for a given year. The budget
24 shall be overseen by the Commission. The budget shall be used
25 to provide grants for community-based organizations serving on
26 the leadership committee, stipends for community-based
HB1700 Enrolled - 603 - LRB104 08228 SPS 18278 b
1 organizations participating in the committee, grants for
2 community-based organizations to do energy efficiency outreach
3 and education, and relevant meeting needs as determined by the
4 leadership committee. The education and outreach shall
5 include, but is not limited to, basic energy efficiency
6 education, information about low-income energy efficiency
7 programs, and information on the committee's purpose,
8 structure, and activities.
9 (d) Notwithstanding any other provision of law to the
10 contrary, a utility providing approved energy efficiency
11 measures and, if applicable, demand-response measures in the
12 State shall be permitted to recover all reasonable and
13 prudently incurred costs of those measures from all retail
14 customers, except as provided in subsection (l) of this
15 Section, as follows, provided that nothing in this subsection
16 (d) permits the double recovery of such costs from customers:
17 (1) The utility may recover its costs through an
18 automatic adjustment clause tariff filed with and approved
19 by the Commission. The tariff shall be established outside
20 the context of a general rate case. Each year the
21 Commission shall initiate a review to reconcile any
22 amounts collected with the actual costs and to determine
23 the required adjustment to the annual tariff factor to
24 match annual expenditures. To enable the financing of the
25 incremental capital expenditures, including regulatory
26 assets, for electric utilities that serve less than
HB1700 Enrolled - 604 - LRB104 08228 SPS 18278 b
1 3,000,000 retail customers but more than 500,000 retail
2 customers in the State, the utility's actual year-end
3 capital structure that includes a common equity ratio,
4 excluding goodwill, of up to and including 50% of the
5 total capital structure shall be deemed reasonable and
6 used to set rates.
7 (2) A utility may recover its costs through an energy
8 efficiency formula rate approved by the Commission under a
9 filing under subsections (f) and (g) of this Section,
10 which shall specify the cost components that form the
11 basis of the rate charged to customers with sufficient
12 specificity to operate in a standardized manner and be
13 updated annually with transparent information that
14 reflects the utility's actual costs to be recovered during
15 the applicable rate year, which is the period beginning
16 with the first billing day of January and extending
17 through the last billing day of the following December.
18 The energy efficiency formula rate shall be implemented
19 through a tariff filed with the Commission under
20 subsections (f) and (g) of this Section that is consistent
21 with the provisions of this paragraph (2) and that shall
22 be applicable to all delivery services customers. The
23 Commission shall conduct an investigation of the tariff in
24 a manner consistent with the provisions of this paragraph
25 (2), subsections (f) and (g) of this Section, and the
26 provisions of Article IX of this Act to the extent they do
HB1700 Enrolled - 605 - LRB104 08228 SPS 18278 b
1 not conflict with this paragraph (2). The energy
2 efficiency formula rate approved by the Commission shall
3 remain in effect at the discretion of the utility and
4 shall do the following:
5 (A) Provide for the recovery of the utility's
6 actual costs incurred under this Section that are
7 prudently incurred and reasonable in amount consistent
8 with Commission practice and law. The sole fact that a
9 cost differs from that incurred in a prior calendar
10 year or that an investment is different from that made
11 in a prior calendar year shall not imply the
12 imprudence or unreasonableness of that cost or
13 investment.
14 (B) Reflect the utility's actual year-end capital
15 structure for the applicable calendar year, excluding
16 goodwill, subject to a determination of prudence and
17 reasonableness consistent with Commission practice and
18 law. To enable the financing of the incremental
19 capital expenditures, including regulatory assets, for
20 electric utilities that serve less than 3,000,000
21 retail customers but more than 500,000 retail
22 customers in the State, a participating electric
23 utility's actual year-end capital structure that
24 includes a common equity ratio, excluding goodwill, of
25 up to and including 50% of the total capital structure
26 shall be deemed reasonable and used to set rates.
HB1700 Enrolled - 606 - LRB104 08228 SPS 18278 b
1 (C) Include a cost of equity that shall be equal to
2 the baseline cost of equity approved by the Commission
3 for the utility's electric distribution rates
4 effective during the applicable year, whether those
5 rates are set pursuant to Section 9-201, subparagraph
6 (B) of paragraph (3) of subsection (d) of Section
7 16-108.18, or any successor electric distribution
8 ratemaking paradigm.
9 (D) Permit and set forth protocols, subject to a
10 determination of prudence and reasonableness
11 consistent with Commission practice and law, for the
12 following:
13 (i) recovery of incentive compensation expense
14 that is based on the achievement of operational
15 metrics, including metrics related to budget
16 controls, outage duration and frequency, safety,
17 customer service, efficiency and productivity, and
18 environmental compliance; however, this protocol
19 shall not apply if such expense related to costs
20 incurred under this Section is recovered under
21 Article IX or Section 16-108.5 of this Act;
22 incentive compensation expense that is based on
23 net income or an affiliate's earnings per share
24 shall not be recoverable under the energy
25 efficiency formula rate;
26 (ii) recovery of pension and other
HB1700 Enrolled - 607 - LRB104 08228 SPS 18278 b
1 post-employment benefits expense, provided that
2 such costs are supported by an actuarial study;
3 however, this protocol shall not apply if such
4 expense related to costs incurred under this
5 Section is recovered under Article IX or Section
6 16-108.5 of this Act;
7 (iii) recovery of existing regulatory assets
8 over the periods previously authorized by the
9 Commission;
10 (iv) as described in subsection (e),
11 amortization of costs incurred under this Section;
12 and
13 (v) projected, weather normalized billing
14 determinants for the applicable rate year.
15 (E) Provide for an annual reconciliation, as
16 described in paragraph (3) of this subsection (d),
17 less any deferred taxes related to the reconciliation,
18 with interest at an annual rate of return equal to the
19 utility's weighted average cost of capital, including
20 a revenue conversion factor calculated to recover or
21 refund all additional income taxes that may be payable
22 or receivable as a result of that return, of the energy
23 efficiency revenue requirement reflected in rates for
24 each calendar year, beginning with the calendar year
25 in which the utility files its energy efficiency
26 formula rate tariff under this paragraph (2), with
HB1700 Enrolled - 608 - LRB104 08228 SPS 18278 b
1 what the revenue requirement would have been had the
2 actual cost information for the applicable calendar
3 year been available at the filing date.
4 The utility shall file, together with its tariff, the
5 projected costs to be incurred by the utility during the
6 rate year under the utility's multi-year plan approved
7 under subsections (f) and (g) of this Section, including,
8 but not limited to, the projected capital investment costs
9 and projected regulatory asset balances with
10 correspondingly updated depreciation and amortization
11 reserves and expense, that shall populate the energy
12 efficiency formula rate and set the initial rates under
13 the formula.
14 The Commission shall review the proposed tariff in
15 conjunction with its review of a proposed multi-year plan,
16 as specified in paragraph (5) of subsection (g) of this
17 Section. The review shall be based on the same evidentiary
18 standards, including, but not limited to, those concerning
19 the prudence and reasonableness of the costs incurred by
20 the utility, the Commission applies in a hearing to review
21 a filing for a general increase in rates under Article IX
22 of this Act. The initial rates shall take effect beginning
23 with the January monthly billing period following the
24 Commission's approval.
25 The tariff's rate design and cost allocation across
26 customer classes shall be consistent with the utility's
HB1700 Enrolled - 609 - LRB104 08228 SPS 18278 b
1 automatic adjustment clause tariff in effect on June 1,
2 2017 (the effective date of Public Act 99-906); however,
3 the Commission may revise the tariff's rate design and
4 cost allocation in subsequent proceedings under paragraph
5 (3) of this subsection (d).
6 If the energy efficiency formula rate is terminated,
7 the then current rates shall remain in effect until such
8 time as the energy efficiency costs are incorporated into
9 new rates that are set under this subsection (d) or
10 Article IX of this Act, subject to retroactive rate
11 adjustment, with interest, to reconcile rates charged with
12 actual costs.
13 (3) The provisions of this paragraph (3) shall only
14 apply to an electric utility that has elected to file an
15 energy efficiency formula rate under paragraph (2) of this
16 subsection (d). Subsequent to the Commission's issuance of
17 an order approving the utility's energy efficiency formula
18 rate structure and protocols, and initial rates under
19 paragraph (2) of this subsection (d), the utility shall
20 file, on or before June 1 of each year, with the Chief
21 Clerk of the Commission its updated cost inputs to the
22 energy efficiency formula rate for the applicable rate
23 year and the corresponding new charges, as well as the
24 information described in paragraph (9) of subsection (g)
25 of this Section. Each such filing shall conform to the
26 following requirements and include the following
HB1700 Enrolled - 610 - LRB104 08228 SPS 18278 b
1 information:
2 (A) The inputs to the energy efficiency formula
3 rate for the applicable rate year shall be based on the
4 projected costs to be incurred by the utility during
5 the rate year under the utility's multi-year plan
6 approved under subsections (f) and (g) of this
7 Section, including, but not limited to, projected
8 capital investment costs and projected regulatory
9 asset balances with correspondingly updated
10 depreciation and amortization reserves and expense.
11 The filing shall also include a reconciliation of the
12 energy efficiency revenue requirement that was in
13 effect for the prior rate year (as set by the cost
14 inputs for the prior rate year) with the actual
15 revenue requirement for the prior rate year
16 (determined using a year-end rate base) that uses
17 amounts reflected in the applicable FERC Form 1 that
18 reports the actual costs for the prior rate year. Any
19 over-collection or under-collection indicated by such
20 reconciliation shall be reflected as a credit against,
21 or recovered as an additional charge to, respectively,
22 with interest calculated at a rate equal to the
23 utility's weighted average cost of capital approved by
24 the Commission for the prior rate year, the charges
25 for the applicable rate year. Such over-collection or
26 under-collection shall be adjusted to remove any
HB1700 Enrolled - 611 - LRB104 08228 SPS 18278 b
1 deferred taxes related to the reconciliation, for
2 purposes of calculating interest at an annual rate of
3 return equal to the utility's weighted average cost of
4 capital approved by the Commission for the prior rate
5 year, including a revenue conversion factor calculated
6 to recover or refund all additional income taxes that
7 may be payable or receivable as a result of that
8 return. Each reconciliation shall be certified by the
9 participating utility in the same manner that FERC
10 Form 1 is certified. The filing shall also include the
11 charge or credit, if any, resulting from the
12 calculation required by subparagraph (E) of paragraph
13 (2) of this subsection (d).
14 Notwithstanding any other provision of law to the
15 contrary, the intent of the reconciliation is to
16 ultimately reconcile both the revenue requirement
17 reflected in rates for each calendar year, beginning
18 with the calendar year in which the utility files its
19 energy efficiency formula rate tariff under paragraph
20 (2) of this subsection (d), with what the revenue
21 requirement determined using a year-end rate base for
22 the applicable calendar year would have been had the
23 actual cost information for the applicable calendar
24 year been available at the filing date.
25 For purposes of this Section, "FERC Form 1" means
26 the Annual Report of Major Electric Utilities,
HB1700 Enrolled - 612 - LRB104 08228 SPS 18278 b
1 Licensees and Others that electric utilities are
2 required to file with the Federal Energy Regulatory
3 Commission under the Federal Power Act, Sections 3,
4 4(a), 304 and 209, modified as necessary to be
5 consistent with 83 Ill. Adm. Code Part 415 as of May 1,
6 2011. Nothing in this Section is intended to allow
7 costs that are not otherwise recoverable to be
8 recoverable by virtue of inclusion in FERC Form 1.
9 (B) The new charges shall take effect beginning on
10 the first billing day of the following January billing
11 period and remain in effect through the last billing
12 day of the next December billing period regardless of
13 whether the Commission enters upon a hearing under
14 this paragraph (3).
15 (C) The filing shall include relevant and
16 necessary data and documentation for the applicable
17 rate year. Normalization adjustments shall not be
18 required.
19 Within 45 days after the utility files its annual
20 update of cost inputs to the energy efficiency formula
21 rate, the Commission shall with reasonable notice,
22 initiate a proceeding concerning whether the projected
23 costs to be incurred by the utility and recovered during
24 the applicable rate year, and that are reflected in the
25 inputs to the energy efficiency formula rate, are
26 consistent with the utility's approved multi-year plan
HB1700 Enrolled - 613 - LRB104 08228 SPS 18278 b
1 under subsections (f) and (g) of this Section and whether
2 the costs incurred by the utility during the prior rate
3 year were prudent and reasonable. The Commission shall
4 also have the authority to investigate the information and
5 data described in paragraph (9) of subsection (g) of this
6 Section, including the proposed adjustment to the
7 utility's return on equity component of its weighted
8 average cost of capital. During the course of the
9 proceeding, each objection shall be stated with
10 particularity and evidence provided in support thereof,
11 after which the utility shall have the opportunity to
12 rebut the evidence. Discovery shall be allowed consistent
13 with the Commission's Rules of Practice, which Rules of
14 Practice shall be enforced by the Commission or the
15 assigned administrative law judge. The Commission shall
16 apply the same evidentiary standards, including, but not
17 limited to, those concerning the prudence and
18 reasonableness of the costs incurred by the utility,
19 during the proceeding as it would apply in a proceeding to
20 review a filing for a general increase in rates under
21 Article IX of this Act. The Commission shall not, however,
22 have the authority in a proceeding under this paragraph
23 (3) to consider or order any changes to the structure or
24 protocols of the energy efficiency formula rate approved
25 under paragraph (2) of this subsection (d). In a
26 proceeding under this paragraph (3), the Commission shall
HB1700 Enrolled - 614 - LRB104 08228 SPS 18278 b
1 enter its order no later than the earlier of 195 days after
2 the utility's filing of its annual update of cost inputs
3 to the energy efficiency formula rate or December 15. The
4 utility's proposed return on equity calculation, as
5 described in paragraphs (7) through (9) of subsection (g)
6 of this Section, shall be deemed the final, approved
7 calculation on December 15 of the year in which it is filed
8 unless the Commission enters an order on or before
9 December 15, after notice and hearing, that modifies such
10 calculation consistent with this Section. The Commission's
11 determinations of the prudence and reasonableness of the
12 costs incurred, and determination of such return on equity
13 calculation, for the applicable calendar year shall be
14 final upon entry of the Commission's order and shall not
15 be subject to reopening, reexamination, or collateral
16 attack in any other Commission proceeding, case, docket,
17 order, rule, or regulation; however, nothing in this
18 paragraph (3) shall prohibit a party from petitioning the
19 Commission to rehear or appeal to the courts the order
20 under the provisions of this Act.
21 (e) Beginning on June 1, 2017 (the effective date of
22 Public Act 99-906), a utility subject to the requirements of
23 this Section may elect to defer, as a regulatory asset, up to
24 the full amount of its expenditures incurred under this
25 Section for each annual period, including, but not limited to,
26 any expenditures incurred above the funding level set by
HB1700 Enrolled - 615 - LRB104 08228 SPS 18278 b
1 subsection (f) of this Section for a given year. The total
2 expenditures deferred as a regulatory asset in a given year
3 shall be amortized and recovered over a period that is equal to
4 the weighted average of the energy efficiency measure lives
5 implemented for that year that are reflected in the regulatory
6 asset. The unamortized balance shall be recognized as of
7 December 31 for a given year. The utility shall also earn a
8 return on the total of the unamortized balances of all of the
9 energy efficiency regulatory assets, less any deferred taxes
10 related to those unamortized balances, at an annual rate equal
11 to the utility's weighted average cost of capital that
12 includes, based on a year-end capital structure, the utility's
13 actual cost of debt for the applicable calendar year and a cost
14 of equity, which shall be determined as set forth in
15 subparagraph (C) of paragraph (2) of subsection of this
16 Section, including a revenue conversion factor calculated to
17 recover or refund all additional income taxes that may be
18 payable or receivable as a result of that return. Capital
19 investment costs shall be depreciated and recovered over their
20 useful lives consistent with generally accepted accounting
21 principles. The weighted average cost of capital shall be
22 applied to the capital investment cost balance, less any
23 accumulated depreciation and accumulated deferred income
24 taxes, as of December 31 for a given year.
25 When an electric utility creates a regulatory asset under
26 the provisions of this Section, the costs are recovered over a
HB1700 Enrolled - 616 - LRB104 08228 SPS 18278 b
1 period during which customers also receive a benefit which is
2 in the public interest. Accordingly, it is the intent of the
3 General Assembly that an electric utility that elects to
4 create a regulatory asset under the provisions of this Section
5 shall recover all of the associated costs as set forth in this
6 Section. After the Commission has approved the prudence and
7 reasonableness of the costs that comprise the regulatory
8 asset, the electric utility shall be permitted to recover all
9 such costs, and the value and recoverability through rates of
10 the associated regulatory asset shall not be limited, altered,
11 impaired, or reduced.
12 (f) Beginning in 2017, each electric utility shall file an
13 energy efficiency plan with the Commission to meet the energy
14 efficiency standards for the next applicable multi-year period
15 beginning January 1 of the year following the filing,
16 according to the schedule set forth in paragraphs (1) through
17 (3) of this subsection (f). If a utility does not file such a
18 plan on or before the applicable filing deadline for the plan,
19 it shall face a penalty of $100,000 per day until the plan is
20 filed.
21 (1) No later than 30 days after June 1, 2017 (the
22 effective date of Public Act 99-906), each electric
23 utility shall file a 4-year energy efficiency plan
24 commencing on January 1, 2018 that is designed to achieve
25 the cumulative persisting annual savings goals specified
26 in paragraphs (1) through (4) of subsection (b-5) of this
HB1700 Enrolled - 617 - LRB104 08228 SPS 18278 b
1 Section or in paragraphs (1) through (4) of subsection
2 (b-15) of this Section, as applicable, through
3 implementation of energy efficiency measures; however, the
4 goals may be reduced if the utility's expenditures are
5 limited pursuant to subsection (m) of this Section or, for
6 a utility that serves less than 3,000,000 retail
7 customers, if each of the following conditions are met:
8 (A) the plan's analysis and forecasts of the utility's
9 ability to acquire energy savings demonstrate that
10 achievement of such goals is not cost effective; and (B)
11 the amount of energy savings achieved by the utility as
12 determined by the independent evaluator for the most
13 recent year for which savings have been evaluated
14 preceding the plan filing was less than the average annual
15 amount of savings required to achieve the goals for the
16 applicable 4-year plan period. Except as provided in
17 subsection (m) of this Section, annual increases in
18 cumulative persisting annual savings goals during the
19 applicable 4-year plan period shall not be reduced to
20 amounts that are less than the maximum amount of
21 cumulative persisting annual savings that is forecast to
22 be cost-effectively achievable during the 4-year plan
23 period. The Commission shall review any proposed goal
24 reduction as part of its review and approval of the
25 utility's proposed plan.
26 (2) No later than March 1, 2021, each electric utility
HB1700 Enrolled - 618 - LRB104 08228 SPS 18278 b
1 shall file a 4-year energy efficiency plan commencing on
2 January 1, 2022 that is designed to achieve the cumulative
3 persisting annual savings goals specified in paragraphs
4 (5) through (8) of subsection (b-5) of this Section or in
5 paragraphs (5) through (8) of subsection (b-15) of this
6 Section, as applicable, through implementation of energy
7 efficiency measures; however, the goals may be reduced if
8 either (1) clear and convincing evidence demonstrates,
9 through independent analysis, that the expenditure limits
10 in subsection (m) of this Section preclude full
11 achievement of the goals or (2) each of the following
12 conditions are met: (A) the plan's analysis and forecasts
13 of the utility's ability to acquire energy savings
14 demonstrate by clear and convincing evidence and through
15 independent analysis that achievement of such goals is not
16 cost effective; and (B) the amount of energy savings
17 achieved by the utility as determined by the independent
18 evaluator for the most recent year for which savings have
19 been evaluated preceding the plan filing was less than the
20 average annual amount of savings required to achieve the
21 goals for the applicable 4-year plan period. If there is
22 not clear and convincing evidence that achieving the
23 savings goals specified in paragraph (b-5) or (b-15) of
24 this Section is possible both cost-effectively and within
25 the expenditure limits in subsection (m), such savings
26 goals shall not be reduced. Except as provided in
HB1700 Enrolled - 619 - LRB104 08228 SPS 18278 b
1 subsection (m) of this Section, annual increases in
2 cumulative persisting annual savings goals during the
3 applicable 4-year plan period shall not be reduced to
4 amounts that are less than the maximum amount of
5 cumulative persisting annual savings that is forecast to
6 be cost-effectively achievable during the 4-year plan
7 period. The Commission shall review any proposed goal
8 reduction as part of its review and approval of the
9 utility's proposed plan.
10 (2.5) Provisions of the multi-year plans for calendar
11 years 2026 through 2029 that relate to calendar year 2026
12 and that were filed by the electric utilities on February
13 28, 2025 shall remain in effect through calendar year
14 2026. Provisions of the plans for calendar years 2027
15 through 2029 shall be modified and resubmitted to the
16 Commission by the electric utilities pursuant to paragraph
17 (3) of this subsection (f).
18 (3) No later than the effective date of this
19 amendatory Act of the 104th General Assembly, each
20 electric utility shall file a 3-year energy efficiency
21 plan commencing on January 1, 2027 that is designed to
22 achieve, through implementation of energy efficiency
23 measures, lifetime energy savings equal to the product of
24 the incremental annual energy savings goals defined by
25 paragraph (1) of subsection (b-16) and the minimum average
26 savings life defined by paragraph (3) of subsection
HB1700 Enrolled - 620 - LRB104 08228 SPS 18278 b
1 (b-16). The 3-year energy efficiency plan of a utility
2 that serves less than 3,000,000 retail customers but more
3 than 500,000 retail customers in the State must also be
4 designed to achieve lifetime peak demand savings equal to
5 the product of the incremental annual peak demand savings
6 goals defined by paragraph (2) of subsection (b-16) and
7 the minimum average savings life defined by paragraph (3)
8 of subsection (b-16) through implementation of energy
9 efficiency measures. The savings goals may be reduced if:
10 (i) clear and convincing evidence and independent analysis
11 demonstrates that the expenditure limits in subsection (m)
12 of this Section preclude full achievement of the goals,
13 (ii) each of the following conditions are met: (A) the
14 plan's analysis and forecasts of the utility's ability to
15 acquire energy savings demonstrate by clear and convincing
16 evidence and through independent analysis that achievement
17 of such goals is not cost-effective; and (B) the amount of
18 energy savings achieved by the utility, as determined by
19 the independent evaluator, for the most recent year for
20 which savings have been evaluated preceding the plan
21 filing was less than the average annual amount of savings
22 required to achieve the goals for the applicable
23 multi-year plan period, or (iii) changes in federal law,
24 programs, or tariffs have a significant and demonstrable
25 impact on the cost of delivering measures and programs. If
26 there is not clear and convincing evidence that achieving
HB1700 Enrolled - 621 - LRB104 08228 SPS 18278 b
1 the savings goals specified in subsection (b-16) is not
2 possible both cost-effectively and within the expenditure
3 limits in subsection (m), such savings goals shall not be
4 reduced. Except as provided in subsection (m), annual
5 savings goals during the applicable multi-year plan period
6 shall not be reduced to amounts that are less than the
7 maximum amount of annual savings that is forecasted to be
8 cost-effectively achievable during the applicable
9 multi-year plan period. The Commission shall review any
10 proposed goal reduction as part of its review and approval
11 of the utility's proposed plan.
12 (4) No later than March 1, 2029, and every 4 years
13 thereafter, each electric utility shall file a 4-year
14 energy efficiency plan commencing on January 1, 2030, and
15 every 4 years thereafter, respectively, that is designed
16 to achieve, through implementation of energy efficiency
17 measures, lifetime energy savings equal to the product of
18 the incremental annual energy savings goals defined by
19 paragraph (1) of subsection (b-16) and the minimum average
20 savings life described in paragraph (3) (C) of subsection
21 (b-16) of this Section. The multi-year energy efficiency
22 plan of a utility that serves less than 3,000,000 retail
23 customers but more than 500,000 retail customers in the
24 State must also be designed to achieve lifetime peak
25 demand savings equal to the product of the incremental
26 annual peak demand savings goals defined by paragraph (2)
HB1700 Enrolled - 622 - LRB104 08228 SPS 18278 b
1 of subsection (b-16) and the minimum average savings life
2 defined by paragraph (3) of subsection (b-16) through
3 implementation of energy efficiency measures. However, the
4 goals may be reduced if: (1) clear and convincing evidence
5 and independent analysis demonstrates that the expenditure
6 limits in subsection (m) of this Section preclude full
7 achievement of the goals; (2) each of the following
8 conditions are met: (A) the plan's analysis and forecasts
9 of the utility's ability to acquire energy savings
10 demonstrate by clear and convincing evidence and through
11 independent analysis that achievement of such goals is not
12 cost-effective; and (B) the amount of energy savings
13 achieved by the utility as determined by the independent
14 evaluator for the most recent year for which savings have
15 been evaluated preceding the plan filing was less than the
16 average annual amount of savings required to achieve the
17 goals for the applicable multi-year plan period; or (3)
18 changes in federal law, programs, or tariffs have a
19 significant and demonstrable impact on the cost of
20 delivering measures and programs. If there is not clear
21 and convincing evidence that achieving the savings goals
22 specified in subsection paragraph (b-16) of this Section
23 is possible both cost-effectively and within the
24 expenditure limits in subsection (m), such savings goals
25 shall not be reduced. Except as provided in subsection (m)
26 of this Section, annual savings goals during the
HB1700 Enrolled - 623 - LRB104 08228 SPS 18278 b
1 applicable multi-year plan period shall not be reduced to
2 amounts that are less than the maximum amount of annual
3 savings that is forecast to be cost-effectively achievable
4 during the applicable multi-year plan period. The
5 Commission shall review any proposed goal reduction as
6 part of its review and approval of the utility's proposed
7 plan.
8 Each utility's plan shall set forth the utility's
9 proposals to meet the energy efficiency standards identified
10 in subsection (b-5), (b-15), or (b-16), as applicable and as
11 such standards may have been modified under this subsection
12 (f), taking into account the unique circumstances of the
13 utility's service territory. For those plans commencing on
14 January 1, 2018, the Commission shall seek public comment on
15 the utility's plan and shall issue an order approving or
16 disapproving each plan no later than 105 days after June 1,
17 2017 (the effective date of Public Act 99-906). For those
18 plans commencing after December 31, 2021, the Commission shall
19 seek public comment on the utility's plan and shall issue an
20 order approving or disapproving each plan within 6 months
21 after its submission. If the Commission disapproves a plan,
22 the Commission shall, within 30 days, describe in detail the
23 reasons for the disapproval and describe a path by which the
24 utility may file a revised draft of the plan to address the
25 Commission's concerns satisfactorily. If the utility does not
26 refile with the Commission within 60 days, the utility shall
HB1700 Enrolled - 624 - LRB104 08228 SPS 18278 b
1 be subject to penalties at a rate of $100,000 per day until the
2 plan is filed. This process shall continue, and penalties
3 shall accrue, until the utility has successfully filed a
4 portfolio of energy efficiency and demand-response measures.
5 Penalties shall be deposited into the Energy Efficiency Trust
6 Fund.
7 (g) In submitting proposed plans and funding levels under
8 subsection (f) of this Section to meet the savings goals
9 identified in subsection (b-5), (b-15), or (b-16) of this
10 Section, as applicable, the utility shall:
11 (1) Demonstrate that its proposed energy efficiency
12 measures will achieve the applicable requirements that are
13 identified in subsection (b-5), (b-15), or (b-16) of this
14 Section, as modified by subsection (f) of this Section.
15 (2) (Blank).
16 (2.5) Demonstrate consideration of program options for
17 (A) advancing new building codes, appliance standards, and
18 municipal regulations governing existing and new building
19 efficiency improvements and (B) supporting efforts to
20 improve compliance with new building codes, appliance
21 standards and municipal regulations, as potentially
22 cost-effective means of acquiring energy savings to count
23 toward savings goals.
24 (3) Demonstrate that its overall portfolio of
25 measures, not including low-income programs described in
26 subsection (c) of this Section, is cost-effective using
HB1700 Enrolled - 625 - LRB104 08228 SPS 18278 b
1 the total resource cost test or complies with paragraphs
2 (1) through (3) of subsection (f) of this Section and
3 represents a diverse cross-section of opportunities for
4 customers of all rate classes, other than those customers
5 described in subsection (l) of this Section, to
6 participate in the programs. Individual measures need not
7 be cost effective.
8 (3.5) Demonstrate that the utility's plan integrates
9 the delivery of energy efficiency programs with natural
10 gas efficiency programs, programs promoting distributed
11 solar, programs promoting demand response and other
12 efforts to address bill payment issues, including, but not
13 limited to, LIHEAP and the Percentage of Income Payment
14 Plan, to the extent such integration is practical and has
15 the potential to enhance customer engagement, minimize
16 market confusion, or reduce administrative costs.
17 (4) If the utility chooses, present a third-party
18 energy efficiency implementation program subject to the
19 following requirements:
20 (A) (blank);
21 (B) during 2018, the utility shall conduct a
22 solicitation process for purposes of requesting
23 proposals from third-party vendors for those
24 third-party energy efficiency programs to be offered
25 during one or more of the years commencing January 1,
26 2019, January 1, 2020, and January 1, 2021; for those
HB1700 Enrolled - 626 - LRB104 08228 SPS 18278 b
1 multi-year plans commencing on January 1, 2022 and
2 January 1, 2026, the utility shall conduct a
3 solicitation process during 2021 and 2025,
4 respectively, for purposes of requesting proposals
5 from third-party vendors for those third-party energy
6 efficiency programs to be offered during one or more
7 years of the respective multi-year plan period; for
8 each solicitation process, the utility shall identify
9 the sector, technology, or geographical area for which
10 it is seeking requests for proposals; the solicitation
11 process must be either for programs that fill gaps in
12 the utility's program portfolio and for programs that
13 target low-income customers, business sectors,
14 building types, geographies, or other specific parts
15 of its customer base with initiatives that would be
16 more effective at reaching these customer segments
17 than the utilities' programs filed in its energy
18 efficiency plans;
19 (C) the utility shall propose the bidder
20 qualifications, performance measurement process, and
21 contract structure, which must include a performance
22 payment mechanism and general terms and conditions;
23 the proposed qualifications, process, and structure
24 shall be subject to Commission approval; and
25 (D) the utility shall retain an independent third
26 party to score the proposals received through the
HB1700 Enrolled - 627 - LRB104 08228 SPS 18278 b
1 solicitation process described in this paragraph (4),
2 rank them according to their cost per lifetime
3 kilowatt-hours saved, and assemble the portfolio of
4 third-party programs.
5 The electric utility shall recover all costs
6 associated with Commission-approved, third-party
7 administered programs regardless of the success of those
8 programs.
9 (4.5) Implement cost-effective demand-response
10 measures to reduce peak demand by 0.1% over the prior year
11 for eligible retail customers, as defined in Section
12 16-111.5 of this Act, and for customers that elect hourly
13 service from the utility pursuant to Section 16-107 of
14 this Act, provided those customers have not been declared
15 competitive. This requirement continues until December 31,
16 2026.
17 (5) Include a proposed or revised cost-recovery tariff
18 mechanism, as provided for under subsection (d) of this
19 Section, to fund the proposed energy efficiency and
20 demand-response measures and to ensure the recovery of the
21 prudently and reasonably incurred costs of
22 Commission-approved programs.
23 (6) Provide for an annual independent evaluation of
24 the performance of the cost-effectiveness of the utility's
25 portfolio of measures, as well as a full review of the
26 multi-year plan results of the broader net program impacts
HB1700 Enrolled - 628 - LRB104 08228 SPS 18278 b
1 and, to the extent practical, for adjustment of the
2 measures on a going-forward basis as a result of the
3 evaluations. The resources dedicated to evaluation shall
4 not exceed 3% of portfolio resources in any given year.
5 (7) For electric utilities that serve more than
6 3,000,000 retail customers in the State:
7 (A) Through December 31, 2026, provide for an
8 adjustment to the return on equity component of the
9 utility's weighted average cost of capital calculated
10 under subsection (d) of this Section:
11 (i) If the independent evaluator determines
12 that the utility achieved a cumulative persisting
13 annual savings that is less than the applicable
14 annual incremental goal, then the return on equity
15 component shall be reduced by a maximum of 200
16 basis points in the event that the utility
17 achieved no more than 75% of such goal. If the
18 utility achieved more than 75% of the applicable
19 annual incremental goal but less than 100% of such
20 goal, then the return on equity component shall be
21 reduced by 8 basis points for each percent by
22 which the utility failed to achieve the goal.
23 (ii) If the independent evaluator determines
24 that the utility achieved a cumulative persisting
25 annual savings that is more than the applicable
26 annual incremental goal, then the return on equity
HB1700 Enrolled - 629 - LRB104 08228 SPS 18278 b
1 component shall be increased by a maximum of 200
2 basis points in the event that the utility
3 achieved at least 125% of such goal. If the
4 utility achieved more than 100% of the applicable
5 annual incremental goal but less than 125% of such
6 goal, then the return on equity component shall be
7 increased by 8 basis points for each percent by
8 which the utility achieved above the goal. If the
9 applicable annual incremental goal was reduced
10 under paragraph (1) or (2) of subsection (f) of
11 this Section, then the following adjustments shall
12 be made to the calculations described in this item
13 (ii):
14 (aa) the calculation for determining
15 achievement that is at least 125% of the
16 applicable annual incremental goal shall use
17 the unreduced applicable annual incremental
18 goal to set the value; and
19 (bb) the calculation for determining
20 achievement that is less than 125% but more
21 than 100% of the applicable annual incremental
22 goal shall use the reduced applicable annual
23 incremental goal to set the value for 100%
24 achievement of the goal and shall use the
25 unreduced goal to set the value for 125%
26 achievement. The 8 basis point value shall
HB1700 Enrolled - 630 - LRB104 08228 SPS 18278 b
1 also be modified, as necessary, so that the
2 200 basis points are evenly apportioned among
3 each percentage point value between 100% and
4 125% achievement.
5 (B) (Blank).
6 (C) (Blank).
7 (7.5) For purposes of this Section, the term
8 "applicable annual incremental goal" means the difference
9 between the cumulative persisting annual savings goal for
10 the calendar year that is the subject of the independent
11 evaluator's determination and the cumulative persisting
12 annual savings goal for the immediately preceding calendar
13 year, as such goals are defined in subsections (b-5) and
14 (b-15) of this Section and as these goals may have been
15 modified as provided for under subsection (b-20) and
16 paragraphs (1) and (2) of subsection (f) of this Section.
17 Under subsections (b), (b-5), (b-10), and (b-15) of this
18 Section, a utility must first replace energy savings from
19 measures that have expired before any progress towards
20 achievement of its applicable annual incremental goal may
21 be counted. Savings may expire because measures installed
22 in previous years have reached the end of their lives,
23 because measures installed in previous years are producing
24 lower savings in the current year than in the previous
25 year, or for other reasons identified by independent
26 evaluators. Notwithstanding anything else set forth in
HB1700 Enrolled - 631 - LRB104 08228 SPS 18278 b
1 this Section, the difference between the actual annual
2 incremental savings achieved in any given year, including
3 the replacement of energy savings that have expired, and
4 the applicable annual incremental goal shall not affect
5 adjustments to the return on equity for subsequent
6 calendar years under this subsection (g).
7 In this Section, "applicable annual total savings
8 requirement" means the total amount of new annual savings
9 that the utility must achieve in any given year to achieve
10 the applicable annual incremental goal. This is equal to
11 the applicable annual incremental goal plus the total new
12 annual savings that are required to replace savings that
13 expired in or at the end of the previous year.
14 (8) For electric utilities that serve less than
15 3,000,000 retail customers but more than 500,000 retail
16 customers in the State:
17 (A) Through December 31, 2026, the applicable
18 annual incremental goal shall be compared to the
19 annual incremental savings as determined by the
20 independent evaluator.
21 (i) The return on equity component shall be
22 reduced by 8 basis points for each percent by
23 which the utility did not achieve 84.4% of the
24 applicable annual incremental goal.
25 (ii) The return on equity component shall be
26 increased by 8 basis points for each percent by
HB1700 Enrolled - 632 - LRB104 08228 SPS 18278 b
1 which the utility exceeded 100% of the applicable
2 annual incremental goal.
3 (iii) The return on equity component shall not
4 be increased or decreased if the annual
5 incremental savings as determined by the
6 independent evaluator is greater than 84.4% of the
7 applicable annual incremental goal and less than
8 100% of the applicable annual incremental goal.
9 (iv) The return on equity component shall not
10 be increased or decreased by an amount greater
11 than 200 basis points pursuant to this
12 subparagraph (A).
13 (B) (Blank).
14 (C) (Blank).
15 (D) (Blank).
16 (8.5) Beginning January 1, 2027, a utility that serves
17 greater than 500,000 retail customers in the State shall
18 have the utility's return on equity modified for
19 performance on the utility's energy savings and peak
20 demand savings goals as follows:
21 (A) The return on equity for a utility that serves
22 more than 3,000,000 retail customers in the State may
23 be adjusted up or down by a maximum of 200 basis points
24 for its performance relative to the product of its
25 incremental annual energy savings goal and average
26 energy savings life. The return on equity for a
HB1700 Enrolled - 633 - LRB104 08228 SPS 18278 b
1 utility that serves less than 3,000,000 retail
2 customers but more than 500,000 retail customers in
3 the State may be adjusted up or down by a maximum of
4 100 basis points for its performance relative to the
5 product of its incremental annual energy savings goal
6 and average energy savings life and a maximum of 100
7 basis points for its performance relative to the
8 product of its incremental annual coincident peak
9 demand savings goal and average peak demand savings
10 life.
11 (B) A utility's performance on its savings goals
12 shall be established by comparing the actual lifetime
13 energy savings, and the actual lifetime coincident
14 peak demand savings if a utility serves less than
15 3,000,000 retail customers but more than 500,000
16 retail customers in the State, achieved from
17 efficiency measures installed in a given year to the
18 product of the incremental annual goals established in
19 paragraphs (1) and (2) of subsection (b-16) and the
20 minimum average savings lives established in paragraph
21 (3) of subsection (b-16), as modified, if applicable,
22 by the Commission under paragraph (4) of subsection
23 (f) of this Section. For the purposes of this
24 paragraph (8.5), "lifetime energy savings" means the
25 total incremental savings that installed efficiency
26 measures are projected to produce, relative to what
HB1700 Enrolled - 634 - LRB104 08228 SPS 18278 b
1 would have occurred absent to the utility's efficiency
2 programs, over the useful lives of the measures.
3 Performance on the energy savings goal, and coincident
4 peak demand savings if a utility serves less than
5 3,000,000 retail customers but more than 500,000
6 retail customers in the State, shall be assessed
7 separately, such that it is possible to earn penalties
8 on both, earn bonuses on both, or earn a bonus for
9 performance on one goal and a penalty on the other.
10 (C) No bonus shall be earned if a utility does not
11 achieve greater than 100% of an approved goal. The
12 maximum bonus for a goal shall be earned if the utility
13 achieves 125% of the unmodified goal. For a utility
14 that serves less than 3,000,000 retail customers but
15 more than 500,000 retail customers in the State, the
16 bonus earned for achieving more than 100% of an
17 approved goal but less than 125% of the unmodified
18 goal shall be linearly interpolated. For a utility
19 with more than 3,000,000 retail customers, the maximum
20 bonus for a goal shall be earned if the utility
21 achieves 125% of the unmodified goal. For a utility
22 with more than 3,000,000 retail customers, the bonus
23 earned for achieving more than 100% of an approved
24 goal but less than 125% of the unmodified goal shall be
25 linearly interpolated.
26 (D) For utilities with greater than 3,000,000
HB1700 Enrolled - 635 - LRB104 08228 SPS 18278 b
1 retail customers, the return on equity shall be
2 unmodified due to performance on an individual goal
3 only if the utility achieves exactly 100% of the goal.
4 For utilities with more than 500,000 but fewer than
5 3,000,000 retail customers, the return on equity shall
6 be unmodified for achieving between 85% and 100% of
7 the goal.
8 (E) Penalties may be earned for falling short of
9 goals, with the magnitude of any penalty being a
10 function of both the size of the utility and whether
11 goals established in subsection (b-16) are modified by
12 the Commission under paragraph (4) of subsection (f)
13 of this Section, as follows:
14 (i) If the savings goals specified in
15 subsection (b-16) of this Section are unmodified,
16 a utility with more than 3,000,000 retail
17 customers shall earn the maximum penalty allocated
18 to a goal for achieving 75% or less of the goal.
19 The penalty for achieving greater than 75% but
20 less than 100% of the goal shall be linearly
21 interpolated.
22 (ii) If the savings goals specified in
23 subsection (b-16) of this Section are unmodified,
24 a utility with more than 500,000 but fewer than
25 3,000,000 retail customers shall earn the maximum
26 penalty allocated to a goal for achieving at least
HB1700 Enrolled - 636 - LRB104 08228 SPS 18278 b
1 33.3 percentage points less than the bottom end of
2 the deadband specified in subparagraph (D) of this
3 paragraph (8.5). The penalty for achieving less
4 than the bottom end of the deadband and greater
5 than 33.3 percentage points less than the bottom
6 end of the deadband shall be linearly
7 interpolated.
8 (iii) If either the energy or peak demand
9 savings goals specified in subsection (b-16) are
10 reduced under paragraph (3) or (4) of subsection
11 (f) of this Section, the maximum penalty allocated
12 to a goal shall be earned if the utility achieves
13 80% or less of the modified goal. The penalty for
14 achieving more than 80% but less than 100% of a
15 modified goal shall be linearly interpolated.
16 (9) The utility shall submit the energy savings data
17 to the independent evaluator no later than 30 days after
18 the close of the plan year. The independent evaluator
19 shall determine the cumulative persisting annual savings
20 and annual incremental savings for a given plan year, as
21 well as an estimate of job impacts and other macroeconomic
22 impacts of the efficiency programs for that year, no later
23 than 120 days after the close of the plan year. The utility
24 shall submit an informational filing to the Commission no
25 later than 160 days after the close of the plan year that
26 attaches the independent evaluator's final report
HB1700 Enrolled - 637 - LRB104 08228 SPS 18278 b
1 identifying the cumulative persisting annual savings for
2 the year and calculates, under paragraph (7) or (8) of
3 this subsection (g), as applicable, any resulting change
4 to the utility's return on equity component of the
5 weighted average cost of capital applicable to the next
6 plan year beginning with the January monthly billing
7 period and extending through the December monthly billing
8 period. However, if the utility recovers the costs
9 incurred under this Section under paragraphs (2) and (3)
10 of subsection (d) of this Section, then the utility shall
11 not be required to submit such informational filing, and
12 shall instead submit the information that would otherwise
13 be included in the informational filing as part of its
14 filing under paragraph (3) of such subsection (d) that is
15 due on or before June 1 of each year.
16 For those utilities that must submit the informational
17 filing, the Commission may, on its own motion or by
18 petition, initiate an investigation of such filing,
19 provided, however, that the utility's proposed return on
20 equity calculation shall be deemed the final, approved
21 calculation on December 15 of the year in which it is filed
22 unless the Commission enters an order on or before
23 December 15, after notice and hearing, that modifies such
24 calculation consistent with this Section.
25 The adjustments to the return on equity component
26 described in paragraphs (7) and (8) of this subsection (g)
HB1700 Enrolled - 638 - LRB104 08228 SPS 18278 b
1 shall be applied as described in such paragraphs through a
2 separate tariff mechanism, which shall be filed by the
3 utility under subsections (f) and (g) of this Section.
4 (9.5) The utility must demonstrate how it will ensure
5 that program implementation contractors and energy
6 efficiency installation vendors will promote workforce
7 equity and quality jobs. For all construction,
8 installation, or other related services procured under
9 this Section, an electric utility must:
10 (A) award a bid preference of 2% to a contractor if
11 the contractor certifies under oath that the
12 contractor's primary place of business is located
13 within the utility's service area; and
14 (B) award a bid preference of 2% to a contractor if
15 the contractor certifies under oath that at least 85%
16 of the workforce to be utilized for such construction,
17 installation, or other related services reside in the
18 utility's service area.
19 (9.6) Utilities shall collect data necessary to ensure
20 compliance with paragraph (9.5) no less than quarterly and
21 shall communicate progress toward compliance with
22 paragraph (9.5) to program implementation contractors and
23 energy efficiency installation vendors no less than
24 quarterly. Utilities shall work with relevant vendors,
25 providing education, training, and other resources needed
26 to ensure compliance and, where necessary, adjusting or
HB1700 Enrolled - 639 - LRB104 08228 SPS 18278 b
1 terminating work with vendors that cannot assist with
2 compliance.
3 (10) Utilities required to implement efficiency
4 programs under subsections (b-5), (b-10), and (b-16) shall
5 report annually to the Illinois Commerce Commission and
6 the General Assembly on how hiring, contracting, job
7 training, and other practices related to its energy
8 efficiency programs enhance the diversity of vendors
9 working on such programs. These reports must include data
10 on vendor and employee diversity, including data on the
11 implementation of paragraphs (9.5) and (9.6) and the
12 proportion of total program dollars awarded to firms that
13 meet the criteria of subparagraphs (A) and (B) of
14 paragraph (9.5). If the utility is not meeting the
15 requirements of paragraphs (9.5) and (9.6), the utility
16 shall submit a plan to adjust their activities so that
17 they meet the requirements of paragraphs (9.5) and (9.6)
18 within the following year.
19 (h) No more than 4% of energy efficiency and
20 demand-response program revenue may be allocated for research,
21 development, or pilot deployment of new equipment or measures.
22 Electric utilities shall work with interested stakeholders to
23 formulate a plan for how these funds should be spent,
24 incorporate statewide approaches for these allocations, and
25 file a 4-year plan that demonstrates that collaboration. If a
26 utility files a request for modified annual energy savings
HB1700 Enrolled - 640 - LRB104 08228 SPS 18278 b
1 goals with the Commission, then a utility shall forgo spending
2 portfolio dollars on research and development proposals.
3 (i) When practicable, electric utilities shall incorporate
4 advanced metering infrastructure data into the planning,
5 implementation, and evaluation of energy efficiency measures
6 and programs, subject to the data privacy and confidentiality
7 protections of applicable law.
8 (j) The independent evaluator shall follow the guidelines
9 and use the savings set forth in Commission-approved energy
10 efficiency policy manuals and technical reference manuals, as
11 each may be updated from time to time. Until such time as
12 measure life values for energy efficiency measures implemented
13 for low-income households under subsection (c) of this Section
14 are incorporated into such Commission-approved manuals, the
15 low-income measures shall have the same measure life values
16 that are established for same measures implemented in
17 households that are not low-income households.
18 (k) Notwithstanding any provision of law to the contrary,
19 an electric utility subject to the requirements of this
20 Section may file a tariff cancelling an automatic adjustment
21 clause tariff in effect under this Section or Section 8-103,
22 which shall take effect no later than one business day after
23 the date such tariff is filed. Thereafter, the utility shall
24 be authorized to defer and recover its expenditures incurred
25 under this Section through a new tariff authorized under
26 subsection (d) of this Section or in the utility's next rate
HB1700 Enrolled - 641 - LRB104 08228 SPS 18278 b
1 case under Article IX or Section 16-108.5 of this Act, with
2 interest at an annual rate equal to the utility's weighted
3 average cost of capital as approved by the Commission in such
4 case. If the utility elects to file a new tariff under
5 subsection (d) of this Section, the utility may file the
6 tariff within 10 days after June 1, 2017 (the effective date of
7 Public Act 99-906), and the cost inputs to such tariff shall be
8 based on the projected costs to be incurred by the utility
9 during the calendar year in which the new tariff is filed and
10 that were not recovered under the tariff that was cancelled as
11 provided for in this subsection. Such costs shall include
12 those incurred or to be incurred by the utility under its
13 multi-year plan approved under subsections (f) and (g) of this
14 Section, including, but not limited to, projected capital
15 investment costs and projected regulatory asset balances with
16 correspondingly updated depreciation and amortization reserves
17 and expense. The Commission shall, after notice and hearing,
18 approve, or approve with modification, such tariff and cost
19 inputs no later than 75 days after the utility filed the
20 tariff, provided that such approval, or approval with
21 modification, shall be consistent with the provisions of this
22 Section to the extent they do not conflict with this
23 subsection (k). The tariff approved by the Commission shall
24 take effect no later than 5 days after the Commission enters
25 its order approving the tariff.
26 No later than 60 days after the effective date of the
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1 tariff cancelling the utility's automatic adjustment clause
2 tariff, the utility shall file a reconciliation that
3 reconciles the moneys collected under its automatic adjustment
4 clause tariff with the costs incurred during the period
5 beginning June 1, 2016 and ending on the date that the electric
6 utility's automatic adjustment clause tariff was cancelled. In
7 the event the reconciliation reflects an under-collection, the
8 utility shall recover the costs as specified in this
9 subsection (k). If the reconciliation reflects an
10 over-collection, the utility shall apply the amount of such
11 over-collection as a one-time credit to retail customers'
12 bills.
13 (l) For the calendar years covered by a multi-year plan
14 commencing after December 31, 2017, subsections (a) through
15 (j) of this Section do not apply to eligible large private
16 energy customers that have chosen to opt out of multi-year
17 plans consistent with this subsection (1).
18 (1) For purposes of this subsection (l), "eligible
19 large private energy customer" means any retail customers,
20 except for federal, State, municipal, and other public
21 customers, of an electric utility that serves more than
22 3,000,000 retail customers, except for federal, State,
23 municipal and other public customers, in the State and
24 whose total highest 30 minute demand was more than 10,000
25 kilowatts, or any retail customers of an electric utility
26 that serves less than 3,000,000 retail customers but more
HB1700 Enrolled - 643 - LRB104 08228 SPS 18278 b
1 than 500,000 retail customers in the State and whose total
2 highest 15 minute demand was more than 10,000 kilowatts.
3 For purposes of this subsection (l), "retail customer" has
4 the meaning set forth in Section 16-102 of this Act.
5 However, for a business entity with multiple sites located
6 in the State, where at least one of those sites qualifies
7 as an eligible large private energy customer, then any of
8 that business entity's sites, properly identified on a
9 form for notice, shall be considered eligible large
10 private energy customers for the purposes of this
11 subsection (l). A determination of whether this subsection
12 is applicable to a customer shall be made for each
13 multi-year plan beginning after December 31, 2017. The
14 criteria for determining whether this subsection (l) is
15 applicable to a retail customer shall be based on the 12
16 consecutive billing periods prior to the start of the
17 first year of each such multi-year plan.
18 (2) Within 45 days after September 15, 2021 (the
19 effective date of Public Act 102-662), the Commission
20 shall prescribe the form for notice required for opting
21 out of energy efficiency programs. The notice must be
22 submitted to the retail electric utility 12 months before
23 the next energy efficiency planning cycle. However, within
24 120 days after the Commission's initial issuance of the
25 form for notice, eligible large private energy customers
26 may submit a form for notice to an electric utility. The
HB1700 Enrolled - 644 - LRB104 08228 SPS 18278 b
1 form for notice for opting out of energy efficiency
2 programs shall include all of the following:
3 (A) a statement indicating that the customer has
4 elected to opt out;
5 (B) the account numbers for the customer accounts
6 to which the opt out shall apply;
7 (C) the mailing address associated with the
8 customer accounts identified under subparagraph (B);
9 (D) an American Society of Heating, Refrigerating,
10 and Air-Conditioning Engineers (ASHRAE) level 2 or
11 higher audit report conducted by an independent
12 third-party expert identifying cost-effective energy
13 efficiency project opportunities that could be
14 invested in over the next 10 years. A retail customer
15 with specialized processes may utilize a self-audit
16 process in lieu of the ASHRAE audit;
17 (E) a description of the customer's plans to
18 reallocate the funds toward internal energy efficiency
19 efforts identified in the subparagraph (D) report,
20 including, but not limited to: (i) strategic energy
21 management or other programs, including descriptions
22 of targeted buildings, equipment and operations; (ii)
23 eligible energy efficiency measures; and (iii)
24 expected energy savings, itemized by technology. If
25 the subparagraph (D) audit report identifies that the
26 customer currently utilizes the best available energy
HB1700 Enrolled - 645 - LRB104 08228 SPS 18278 b
1 efficient technology, equipment, programs, and
2 operations, the customer may provide a statement that
3 more efficient technology, equipment, programs, and
4 operations are not reasonably available as a means of
5 satisfying this subparagraph (E); and
6 (F) the effective date of the opt out, which will
7 be the next January 1 following notice of the opt out.
8 (3) Upon receipt of a properly and timely noticed
9 request for opt out submitted by an eligible large private
10 energy customer, the retail electric utility shall grant
11 the request, file the request with the Commission and,
12 beginning January 1 of the following year, the opted out
13 customer shall no longer be assessed the costs of the plan
14 and shall be prohibited from participating in that 4-year
15 plan cycle to give the retail utility the certainty to
16 design program plan proposals.
17 (4) Upon a customer's election to opt out under
18 paragraphs (1) and (2) of this subsection (l) and
19 commencing on the effective date of said opt out, the
20 account properly identified in the customer's notice under
21 paragraph (2) shall not be subject to any cost recovery
22 and shall not be eligible to participate in, or directly
23 benefit from, compliance with energy efficiency cumulative
24 persisting savings requirements under subsections (a)
25 through (j).
26 (5) A utility's cumulative persisting annual savings
HB1700 Enrolled - 646 - LRB104 08228 SPS 18278 b
1 targets will exclude any opted out load.
2 (6) The request to opt out is only valid for the
3 requested plan cycle. An eligible large private energy
4 customer must also request to opt out for future energy
5 plan cycles, otherwise the customer will be included in
6 the future energy plan cycle.
7 (m) Notwithstanding the requirements of this Section, as
8 part of a proceeding to approve a multi-year plan under
9 subsections (f) and (g) of this Section if the multi-year plan
10 has been designed to maximize savings, but does not meet the
11 cost cap limitations of this Section, the Commission shall
12 reduce the amount of energy efficiency measures implemented
13 for any single year, and whose costs are recovered under
14 subsection (d) of this Section, by an amount necessary to
15 limit the estimated average net increase due to the cost of the
16 measures to no more than
17 (1) 3.5% for each of the 4 years beginning January 1,
18 2018,
19 (2) (blank),
20 (3) 4% for each of the 4 years beginning January 1,
21 2022,
22 (3.5) 4.25% for 2026,
23 (4) 4.25% for electric utilities that serve more than
24 3,000,000 retail customers in the State, and 4.21% for
25 2027, 5.25% for 2028, and 6.06% for 2029 for electric
26 utilities with less than 3,000,000 retail customers but
HB1700 Enrolled - 647 - LRB104 08228 SPS 18278 b
1 more than 500,000 retail customers in the State, for the 3
2 years beginning January 1, 2027, and
3 (5) the percentage specified in paragraph (4)
4 applicable to 2029 plus an increase sufficient to account
5 for the rate of inflation between January 1, 2027 and
6 January 1 of the first year of each subsequent 4-year plan
7 cycle,
8 of the average amount paid per kilowatthour by residential
9 eligible retail customers during calendar year 2015 for plans
10 in effect through 2026 and during calendar year 2023 for plans
11 commencing in 2027 and thereafter. An electric utility may
12 plan to spend up to 10% more in any year during an applicable
13 multi-year plan period, including any transition period
14 authorized under paragraph (2.5) of subsection (f), to
15 cost-effectively achieve additional savings so long as the
16 average over the applicable multi-year plan period, which
17 shall include any transition period, does not exceed the
18 percentages defined in items (1) through (5). To determine the
19 total amount that may be spent by an electric utility in any
20 single year, the applicable percentage of the average amount
21 paid per kilowatthour shall be multiplied by (i) the total
22 amount of energy delivered by such electric utility in the
23 calendar year 2015 for plans in effect through 2026, (ii) for
24 an electric utility that serves more than 3,000,000 retail
25 customers in the State, the average amount of energy delivered
26 by such electric utility in calendar years 2021 through 2023
HB1700 Enrolled - 648 - LRB104 08228 SPS 18278 b
1 for plans commencing in 2027 and thereafter, and (iii) for an
2 electric utility that serves less than 3,000,000 retail
3 customers but more than 500,000 retail customers in the State,
4 the total amount of energy delivered by such electric utility
5 in the calendar year 2023 and during calendar year 2023 for
6 plans commencing in 2027 and thereafter, adjusted to reflect
7 the proportion of the utility's load attributable to customers
8 that have opted out of subsections (a) through (j) of this
9 Section under subsection (l) of this Section. For purposes of
10 this subsection (m), the amount paid per kilowatthour
11 includes, without limitation, estimated amounts paid for
12 supply, transmission, distribution, surcharges, and add-on
13 taxes. For purposes of this Section, "eligible retail
14 customers" shall have the meaning set forth in Section
15 16-111.5 of this Act. Once the Commission has approved a plan
16 under subsections (f) and (g) of this Section, no subsequent
17 rate impact determinations shall be made.
18 (n) A utility shall take advantage of the efficiencies
19 available through existing Illinois Home Weatherization
20 Assistance Program infrastructure and services, such as
21 enrollment, marketing, quality assurance and implementation,
22 which can reduce the need for similar services at a lower cost
23 than utility-only programs, subject to capacity constraints at
24 community action agencies, for both single-family and
25 multifamily weatherization services, to the extent Illinois
26 Home Weatherization Assistance Program community action
HB1700 Enrolled - 649 - LRB104 08228 SPS 18278 b
1 agencies provide multifamily services. A utility's plan shall
2 demonstrate that in formulating annual weatherization budgets,
3 it has sought input and coordination with community action
4 agencies regarding agencies' capacity to expand and maximize
5 Illinois Home Weatherization Assistance Program delivery using
6 the ratepayer dollars collected under this Section.
7 (Source: P.A. 103-154, eff. 6-30-23; 103-613, eff. 7-1-24;
8 104-458, eff. 6-1-26.)
9 (220 ILCS 5/8-104)
10 (Text of Section before amendment by P.A. 104-458)
11 Sec. 8-104. Natural gas energy efficiency programs.
12 (a) It is the policy of the State that natural gas
13 utilities and the Department of Commerce and Economic
14 Opportunity are required to use cost-effective energy
15 efficiency to reduce direct and indirect costs to consumers.
16 It serves the public interest to allow natural gas utilities
17 to recover costs for reasonably and prudently incurred
18 expenses for cost-effective energy efficiency measures.
19 (b) For purposes of this Section, "energy efficiency"
20 means measures that reduce the amount of energy required to
21 achieve a given end use. "Energy efficiency" also includes
22 measures that reduce the total Btus of electricity and natural
23 gas needed to meet the end use or uses. "Cost-effective" means
24 that the measures satisfy the total resource cost test which,
25 for purposes of this Section, means a standard that is met if,
HB1700 Enrolled - 650 - LRB104 08228 SPS 18278 b
1 for an investment in energy efficiency, the benefit-cost ratio
2 is greater than one. The benefit-cost ratio is the ratio of the
3 net present value of the total benefits of the measures to the
4 net present value of the total costs as calculated over the
5 lifetime of the measures. The total resource cost test
6 compares the sum of avoided natural gas utility costs,
7 representing the benefits that accrue to the system and the
8 participant in the delivery of those efficiency measures, as
9 well as other quantifiable societal benefits, including
10 avoided electric utility costs, to the sum of all incremental
11 costs of end use measures (including both utility and
12 participant contributions), plus costs to administer, deliver,
13 and evaluate each demand-side measure, to quantify the net
14 savings obtained by substituting demand-side measures for
15 supply resources. In calculating avoided costs, reasonable
16 estimates shall be included for financial costs likely to be
17 imposed by future regulation of emissions of greenhouse gases.
18 The low-income programs described in item (4) of subsection
19 (f) of this Section shall not be required to meet the total
20 resource cost test.
21 (c) Natural gas utilities shall implement cost-effective
22 energy efficiency measures to meet at least the following
23 natural gas savings requirements, which shall be based upon
24 the total amount of gas delivered to retail customers, other
25 than the customers described in subsection (m) of this
26 Section, during calendar year 2009 multiplied by the
HB1700 Enrolled - 651 - LRB104 08228 SPS 18278 b
1 applicable percentage. Natural gas utilities may comply with
2 this Section by meeting the annual incremental savings goal in
3 the applicable year or by showing that total cumulative annual
4 savings within a multi-year planning period associated with
5 measures implemented after May 31, 2011 were equal to the sum
6 of each annual incremental savings requirement from the first
7 day of the multi-year planning period through the last day of
8 the multi-year planning period:
9 (1) 0.2% by May 31, 2012;
10 (2) an additional 0.4% by May 31, 2013, increasing
11 total savings to .6%;
12 (3) an additional 0.6% by May 31, 2014, increasing
13 total savings to 1.2%;
14 (4) an additional 0.8% by May 31, 2015, increasing
15 total savings to 2.0%;
16 (5) an additional 1% by May 31, 2016, increasing total
17 savings to 3.0%;
18 (6) an additional 1.2% by May 31, 2017, increasing
19 total savings to 4.2%;
20 (7) an additional 1.4% in the year commencing January
21 1, 2018;
22 (8) an additional 1.5% in the year commencing January
23 1, 2019; and
24 (9) an additional 1.5% in each 12-month period
25 thereafter.
26 (d) Notwithstanding the requirements of subsection (c) of
HB1700 Enrolled - 652 - LRB104 08228 SPS 18278 b
1 this Section, a natural gas utility shall limit the amount of
2 energy efficiency implemented in any multi-year reporting
3 period established by subsection (f) of Section 8-104 of this
4 Act, by an amount necessary to limit the estimated average
5 increase in the amounts paid by retail customers in connection
6 with natural gas service to no more than 2% in the applicable
7 multi-year reporting period. The energy savings requirements
8 in subsection (c) of this Section may be reduced by the
9 Commission for the subject plan, if the utility demonstrates
10 by substantial evidence that it is highly unlikely that the
11 requirements could be achieved without exceeding the
12 applicable spending limits in any multi-year reporting period.
13 No later than September 1, 2013, the Commission shall review
14 the limitation on the amount of energy efficiency measures
15 implemented pursuant to this Section and report to the General
16 Assembly, in the report required by subsection (k) of this
17 Section, its findings as to whether that limitation unduly
18 constrains the procurement of energy efficiency measures.
19 (e) The provisions of this subsection (e) apply to those
20 multi-year plans that commence prior to January 1, 2018. The
21 utility shall utilize 75% of the available funding associated
22 with energy efficiency programs approved by the Commission,
23 and may outsource various aspects of program development and
24 implementation. The remaining 25% of available funding shall
25 be used by the Department of Commerce and Economic Opportunity
26 to implement energy efficiency measures that achieve no less
HB1700 Enrolled - 653 - LRB104 08228 SPS 18278 b
1 than 20% of the requirements of subsection (c) of this
2 Section. Such measures shall be designed in conjunction with
3 the utility and approved by the Commission. The Department may
4 outsource development and implementation of energy efficiency
5 measures. A minimum of 10% of the entire portfolio of
6 cost-effective energy efficiency measures shall be procured
7 from local government, municipal corporations, school
8 districts, public institutions of higher education, and
9 community college districts. Five percent of the entire
10 portfolio of cost-effective energy efficiency measures may be
11 granted to local government and municipal corporations for
12 market transformation initiatives. The Department shall
13 coordinate the implementation of these measures and shall
14 integrate delivery of natural gas efficiency programs with
15 electric efficiency programs delivered pursuant to Section
16 8-103 of this Act, unless the Department can show that
17 integration is not feasible.
18 The apportionment of the dollars to cover the costs to
19 implement the Department's share of the portfolio of energy
20 efficiency measures shall be made to the Department once the
21 Department has executed rebate agreements, grants, or
22 contracts for energy efficiency measures and provided
23 supporting documentation for those rebate agreements, grants,
24 and contracts to the utility. The Department is authorized to
25 adopt any rules necessary and prescribe procedures in order to
26 ensure compliance by applicants in carrying out the purposes
HB1700 Enrolled - 654 - LRB104 08228 SPS 18278 b
1 of rebate agreements for energy efficiency measures
2 implemented by the Department made under this Section.
3 The details of the measures implemented by the Department
4 shall be submitted by the Department to the Commission in
5 connection with the utility's filing regarding the energy
6 efficiency measures that the utility implements.
7 The portfolio of measures, administered by both the
8 utilities and the Department, shall, in combination, be
9 designed to achieve the annual energy savings requirements set
10 forth in subsection (c) of this Section, as modified by
11 subsection (d) of this Section.
12 The utility and the Department shall agree upon a
13 reasonable portfolio of measures and determine the measurable
14 corresponding percentage of the savings goals associated with
15 measures implemented by the Department.
16 No utility shall be assessed a penalty under subsection
17 (f) of this Section for failure to make a timely filing if that
18 failure is the result of a lack of agreement with the
19 Department with respect to the allocation of responsibilities
20 or related costs or target assignments. In that case, the
21 Department and the utility shall file their respective plans
22 with the Commission and the Commission shall determine an
23 appropriate division of measures and programs that meets the
24 requirements of this Section.
25 (e-5) The provisions of this subsection (e-5) shall be
26 applicable to those multi-year plans that commence after
HB1700 Enrolled - 655 - LRB104 08228 SPS 18278 b
1 December 31, 2017. Natural gas utilities shall be responsible
2 for overseeing the design, development, and filing of their
3 efficiency plans with the Commission and may outsource
4 development and implementation of energy efficiency measures.
5 A minimum of 10% of the entire portfolio of cost-effective
6 energy efficiency measures shall be procured from local
7 government, municipal corporations, school districts, public
8 institutions of higher education, and community college
9 districts. Five percent of the entire portfolio of
10 cost-effective energy efficiency measures may be granted to
11 local government and municipal corporations for market
12 transformation initiatives.
13 The utilities shall also present a portfolio of energy
14 efficiency measures proportionate to the share of total annual
15 utility revenues in Illinois from households at or below 150%
16 of the poverty level. Such programs shall be targeted to
17 households with incomes at or below 80% of area median income.
18 (e-10) A utility providing approved energy efficiency
19 measures in this State shall be permitted to recover costs of
20 those measures through an automatic adjustment clause tariff
21 filed with and approved by the Commission. The tariff shall be
22 established outside the context of a general rate case and
23 shall be applicable to the utility's customers other than the
24 customers described in subsection (m) of this Section. Each
25 year the Commission shall initiate a review to reconcile any
26 amounts collected with the actual costs and to determine the
HB1700 Enrolled - 656 - LRB104 08228 SPS 18278 b
1 required adjustment to the annual tariff factor to match
2 annual expenditures.
3 (e-15) For those multi-year plans that commence prior to
4 January 1, 2018, each utility shall include, in its recovery
5 of costs, the costs estimated for both the utility's and the
6 Department's implementation of energy efficiency measures.
7 Costs collected by the utility for measures implemented by the
8 Department shall be submitted to the Department pursuant to
9 Section 605-323 of the Civil Administrative Code of Illinois,
10 shall be deposited into the Energy Efficiency Portfolio
11 Standards Fund, and shall be used by the Department solely for
12 the purpose of implementing these measures. A utility shall
13 not be required to advance any moneys to the Department but
14 only to forward such funds as it has collected. The Department
15 shall report to the Commission on an annual basis regarding
16 the costs actually incurred by the Department in the
17 implementation of the measures. Any changes to the costs of
18 energy efficiency measures as a result of plan modifications
19 shall be appropriately reflected in amounts recovered by the
20 utility and turned over to the Department.
21 (f) No later than October 1, 2010, each gas utility shall
22 file an energy efficiency plan with the Commission to meet the
23 energy efficiency standards through May 31, 2014. No later
24 than October 1, 2013, each gas utility shall file an energy
25 efficiency plan with the Commission to meet the energy
26 efficiency standards through May 31, 2017. Beginning in 2017
HB1700 Enrolled - 657 - LRB104 08228 SPS 18278 b
1 and every 4 years thereafter, each utility shall file an
2 energy efficiency plan with the Commission to meet the energy
3 efficiency standards for the next applicable 4-year period
4 beginning January 1 of the year following the filing. For
5 those multi-year plans commencing on January 1, 2018, each
6 utility shall file its proposed energy efficiency plan no
7 later than 30 days after the effective date of this amendatory
8 Act of the 99th General Assembly or May 1, 2017, whichever is
9 later. Beginning in 2021 and every 4 years thereafter, each
10 utility shall file its energy efficiency plan no later than
11 March 1. If a utility does not file such a plan on or before
12 the applicable filing deadline for the plan, then it shall
13 face a penalty of $100,000 per day until the plan is filed.
14 Each utility's plan shall set forth the utility's
15 proposals to meet the utility's portion of the energy
16 efficiency standards identified in subsection (c) of this
17 Section, as modified by subsection (d) of this Section, taking
18 into account the unique circumstances of the utility's service
19 territory. For those plans commencing after December 31, 2021,
20 the Commission shall seek public comment on the utility's plan
21 and shall issue an order approving or disapproving each plan
22 within 6 months after its submission. For those plans
23 commencing on January 1, 2018, the Commission shall seek
24 public comment on the utility's plan and shall issue an order
25 approving or disapproving each plan no later than August 31,
26 2017, or 105 days after the effective date of this amendatory
HB1700 Enrolled - 658 - LRB104 08228 SPS 18278 b
1 Act of the 99th General Assembly, whichever is later. If the
2 Commission disapproves a plan, the Commission shall, within 30
3 days, describe in detail the reasons for the disapproval and
4 describe a path by which the utility may file a revised draft
5 of the plan to address the Commission's concerns
6 satisfactorily. If the utility does not refile with the
7 Commission within 60 days after the disapproval, the utility
8 shall be subject to penalties at a rate of $100,000 per day
9 until the plan is filed. This process shall continue, and
10 penalties shall accrue, until the utility has successfully
11 filed a portfolio of energy efficiency measures. Penalties
12 shall be deposited into the Energy Efficiency Trust Fund and
13 the cost of any such penalties may not be recovered from
14 ratepayers. In submitting proposed energy efficiency plans and
15 funding levels to meet the savings goals adopted by this Act
16 the utility shall:
17 (1) Demonstrate that its proposed energy efficiency
18 measures will achieve the requirements that are identified
19 in subsection (c) of this Section, as modified by
20 subsection (d) of this Section.
21 (2) Present specific proposals to implement new
22 building and appliance standards that have been placed
23 into effect.
24 (3) Present estimates of the total amount paid for gas
25 service expressed on a per therm basis associated with the
26 proposed portfolio of measures designed to meet the
HB1700 Enrolled - 659 - LRB104 08228 SPS 18278 b
1 requirements that are identified in subsection (c) of this
2 Section, as modified by subsection (d) of this Section.
3 (4) For those multi-year plans that commence prior to
4 January 1, 2018, coordinate with the Department to present
5 a portfolio of energy efficiency measures proportionate to
6 the share of total annual utility revenues in Illinois
7 from households at or below 150% of the poverty level.
8 Such programs shall be targeted to households with incomes
9 at or below 80% of area median income.
10 (5) Demonstrate that its overall portfolio of energy
11 efficiency measures, not including low-income programs
12 described in item (4) of this subsection (f) and
13 subsection (e-5) of this Section, are cost-effective using
14 the total resource cost test and represent a diverse cross
15 section of opportunities for customers of all rate classes
16 to participate in the programs.
17 (6) Demonstrate that a gas utility affiliated with an
18 electric utility that is required to comply with Section
19 8-103 or 8-103B of this Act has integrated gas and
20 electric efficiency measures into a single program that
21 reduces program or participant costs and appropriately
22 allocates costs to gas and electric ratepayers. For those
23 multi-year plans that commence prior to January 1, 2018,
24 the Department shall integrate all gas and electric
25 programs it delivers in any such utilities' service
26 territories, unless the Department can show that
HB1700 Enrolled - 660 - LRB104 08228 SPS 18278 b
1 integration is not feasible or appropriate.
2 (7) Include a proposed cost recovery tariff mechanism
3 to fund the proposed energy efficiency measures and to
4 ensure the recovery of the prudently and reasonably
5 incurred costs of Commission-approved programs.
6 (8) Provide for quarterly status reports tracking
7 implementation of and expenditures for the utility's
8 portfolio of measures and, if applicable, the Department's
9 portfolio of measures, an annual independent review, and a
10 full independent evaluation of the multi-year results of
11 the performance and the cost-effectiveness of the
12 utility's and, if applicable, Department's portfolios of
13 measures and broader net program impacts and, to the
14 extent practical, for adjustment of the measures on a
15 going forward basis as a result of the evaluations. The
16 resources dedicated to evaluation shall not exceed 3% of
17 portfolio resources in any given multi-year period.
18 (g) No more than 3% of expenditures on energy efficiency
19 measures may be allocated for demonstration of breakthrough
20 equipment and devices.
21 (h) Illinois natural gas utilities that are affiliated by
22 virtue of a common parent company may, at the utilities'
23 request, be considered a single natural gas utility for
24 purposes of complying with this Section.
25 (i) If, after 3 years, a gas utility fails to meet the
26 efficiency standard specified in subsection (c) of this
HB1700 Enrolled - 661 - LRB104 08228 SPS 18278 b
1 Section as modified by subsection (d), then it shall make a
2 contribution to the Low-Income Home Energy Assistance Program.
3 The total liability for failure to meet the goal shall be
4 assessed as follows:
5 (1) a large gas utility shall pay $600,000;
6 (2) a medium gas utility shall pay $400,000; and
7 (3) a small gas utility shall pay $200,000.
8 For purposes of this Section, (i) a "large gas utility" is
9 a gas utility that on December 31, 2008, served more than
10 1,500,000 gas customers in Illinois; (ii) a "medium gas
11 utility" is a gas utility that on December 31, 2008, served
12 fewer than 1,500,000, but more than 500,000 gas customers in
13 Illinois; and (iii) a "small gas utility" is a gas utility that
14 on December 31, 2008, served fewer than 500,000 and more than
15 100,000 gas customers in Illinois. The costs of this
16 contribution may not be recovered from ratepayers.
17 If a gas utility fails to meet the efficiency standard
18 specified in subsection (c) of this Section, as modified by
19 subsection (d) of this Section, in any 2 consecutive
20 multi-year planning periods, then the responsibility for
21 implementing the utility's energy efficiency measures shall be
22 transferred to an independent program administrator selected
23 by the Commission. Reasonable and prudent costs incurred by
24 the independent program administrator to meet the efficiency
25 standard specified in subsection (c) of this Section, as
26 modified by subsection (d) of this Section, may be recovered
HB1700 Enrolled - 662 - LRB104 08228 SPS 18278 b
1 from the customers of the affected gas utilities, other than
2 customers described in subsection (m) of this Section. The
3 utility shall provide the independent program administrator
4 with all information and assistance necessary to perform the
5 program administrator's duties including but not limited to
6 customer, account, and energy usage data, and shall allow the
7 program administrator to include inserts in customer bills.
8 The utility may recover reasonable costs associated with any
9 such assistance.
10 (j) No utility shall be deemed to have failed to meet the
11 energy efficiency standards to the extent any such failure is
12 due to a failure of the Department.
13 (k) Not later than January 1, 2012, the Commission shall
14 develop and solicit public comment on a plan to foster
15 statewide coordination and consistency between statutorily
16 mandated natural gas and electric energy efficiency programs
17 to reduce program or participant costs or to improve program
18 performance. Not later than September 1, 2013, the Commission
19 shall issue a report to the General Assembly containing its
20 findings and recommendations.
21 (l) This Section does not apply to a gas utility that on
22 January 1, 2009, provided gas service to fewer than 100,000
23 customers in Illinois.
24 (m) Subsections (a) through (k) of this Section do not
25 apply to customers of a natural gas utility that have a North
26 American Industry Classification System code number that is
HB1700 Enrolled - 663 - LRB104 08228 SPS 18278 b
1 22111 or any such code number beginning with the digits 31, 32,
2 or 33 and (i) annual usage in the aggregate of 4 million therms
3 or more within the service territory of the affected gas
4 utility or with aggregate usage of 8 million therms or more in
5 this State and complying with the provisions of item (l) of
6 this subsection (m); or (ii) using natural gas as feedstock
7 and meeting the usage requirements described in item (i) of
8 this subsection (m), to the extent such annual feedstock usage
9 is greater than 60% of the customer's total annual usage of
10 natural gas.
11 (1) Customers described in this subsection (m) of this
12 Section shall apply, on a form approved on or before
13 October 1, 2009 by the Department, to the Department to be
14 designated as a self-directing customer ("SDC") or as an
15 exempt customer using natural gas as a feedstock from
16 which other products are made, including, but not limited
17 to, feedstock for a hydrogen plant, on or before the 1st
18 day of February, 2010. Thereafter, application may be made
19 not less than 6 months before the filing date of the gas
20 utility energy efficiency plan described in subsection (f)
21 of this Section; however, a new customer that commences
22 taking service from a natural gas utility after February
23 1, 2010 may apply to become a SDC or exempt customer up to
24 30 days after beginning service. Customers described in
25 this subsection (m) that have not already been approved by
26 the Department may apply to be designated a self-directing
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1 customer or exempt customer, on a form approved by the
2 Department, between September 1, 2013 and September 30,
3 2013. Customer applications that are approved by the
4 Department under this amendatory Act of the 98th General
5 Assembly shall be considered to be a self-directing
6 customer or exempt customer, as applicable, for the
7 current 3-year planning period effective December 1, 2013.
8 Such application shall contain the following:
9 (A) the customer's certification that, at the time
10 of its application, it qualifies to be a SDC or exempt
11 customer described in this subsection (m) of this
12 Section;
13 (B) in the case of a SDC, the customer's
14 certification that it has established or will
15 establish by the beginning of the utility's multi-year
16 planning period commencing subsequent to the
17 application, and will maintain for accounting
18 purposes, an energy efficiency reserve account and
19 that the customer will accrue funds in said account to
20 be held for the purpose of funding, in whole or in
21 part, energy efficiency measures of the customer's
22 choosing, which may include, but are not limited to,
23 projects involving combined heat and power systems
24 that use the same energy source both for the
25 generation of electrical or mechanical power and the
26 production of steam or another form of useful thermal
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1 energy or the use of combustible gas produced from
2 biomass, or both;
3 (C) in the case of a SDC, the customer's
4 certification that annual funding levels for the
5 energy efficiency reserve account will be equal to 2%
6 of the customer's cost of natural gas, composed of the
7 customer's commodity cost and the delivery service
8 charges paid to the gas utility, or $150,000,
9 whichever is less;
10 (D) in the case of a SDC, the customer's
11 certification that the required reserve account
12 balance will be capped at 3 years' worth of accruals
13 and that the customer may, at its option, make further
14 deposits to the account to the extent such deposit
15 would increase the reserve account balance above the
16 designated cap level;
17 (E) in the case of a SDC, the customer's
18 certification that by October 1 of each year,
19 beginning no sooner than October 1, 2012, the customer
20 will report to the Department information, for the
21 12-month period ending May 31 of the same year, on all
22 deposits and reductions, if any, to the reserve
23 account during the reporting year, and to the extent
24 deposits to the reserve account in any year are in an
25 amount less than $150,000, the basis for such reduced
26 deposits; reserve account balances by month; a
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1 description of energy efficiency measures undertaken
2 by the customer and paid for in whole or in part with
3 funds from the reserve account; an estimate of the
4 energy saved, or to be saved, by the measure; and that
5 the report shall include a verification by an officer
6 or plant manager of the customer or by a registered
7 professional engineer or certified energy efficiency
8 trade professional that the funds withdrawn from the
9 reserve account were used for the energy efficiency
10 measures;
11 (F) in the case of an exempt customer, the
12 customer's certification of the level of gas usage as
13 feedstock in the customer's operation in a typical
14 year and that it will provide information establishing
15 this level, upon request of the Department;
16 (G) in the case of either an exempt customer or a
17 SDC, the customer's certification that it has provided
18 the gas utility or utilities serving the customer with
19 a copy of the application as filed with the
20 Department;
21 (H) in the case of either an exempt customer or a
22 SDC, certification of the natural gas utility or
23 utilities serving the customer in Illinois including
24 the natural gas utility accounts that are the subject
25 of the application; and
26 (I) in the case of either an exempt customer or a
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1 SDC, a verification signed by a plant manager or an
2 authorized corporate officer attesting to the
3 truthfulness and accuracy of the information contained
4 in the application.
5 (2) The Department shall review the application to
6 determine that it contains the information described in
7 provisions (A) through (I) of item (1) of this subsection
8 (m), as applicable. The review shall be completed within
9 30 days after the date the application is filed with the
10 Department. Absent a determination by the Department
11 within the 30-day period, the applicant shall be
12 considered to be a SDC or exempt customer, as applicable,
13 for all subsequent multi-year planning periods, as of the
14 date of filing the application described in this
15 subsection (m). If the Department determines that the
16 application does not contain the applicable information
17 described in provisions (A) through (I) of item (1) of
18 this subsection (m), it shall notify the customer, in
19 writing, of its determination that the application does
20 not contain the required information and identify the
21 information that is missing, and the customer shall
22 provide the missing information within 15 working days
23 after the date of receipt of the Department's
24 notification.
25 (3) The Department shall have the right to audit the
26 information provided in the customer's application and
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1 annual reports to ensure continued compliance with the
2 requirements of this subsection. Based on the audit, if
3 the Department determines the customer is no longer in
4 compliance with the requirements of items (A) through (I)
5 of item (1) of this subsection (m), as applicable, the
6 Department shall notify the customer in writing of the
7 noncompliance. The customer shall have 30 days to
8 establish its compliance, and failing to do so, may have
9 its status as a SDC or exempt customer revoked by the
10 Department. The Department shall treat all information
11 provided by any customer seeking SDC status or exemption
12 from the provisions of this Section as strictly
13 confidential.
14 (4) Upon request, or on its own motion, the Commission
15 may open an investigation, no more than once every 3 years
16 and not before October 1, 2014, to evaluate the
17 effectiveness of the self-directing program described in
18 this subsection (m).
19 Customers described in this subsection (m) that applied to
20 the Department on January 3, 2013, were approved by the
21 Department on February 13, 2013 to be a self-directing
22 customer or exempt customer, and receive natural gas from a
23 utility that provides gas service to at least 500,000 retail
24 customers in Illinois and electric service to at least
25 1,000,000 retail customers in Illinois shall be considered to
26 be a self-directing customer or exempt customer, as
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1 applicable, for the current 3-year planning period effective
2 December 1, 2013.
3 (n) The applicability of this Section to customers
4 described in subsection (m) of this Section is conditioned on
5 the existence of the SDC program. In no event will any
6 provision of this Section apply to such customers after
7 January 1, 2020.
8 (o) Utilities' 3-year energy efficiency plans approved by
9 the Commission on or before the effective date of this
10 amendatory Act of the 99th General Assembly for the period
11 June 1, 2014 through May 31, 2017 shall continue to be in force
12 and effect through December 31, 2017 so that the energy
13 efficiency programs set forth in those plans continue to be
14 offered during the period June 1, 2017 through December 31,
15 2017. Each utility is authorized to increase, on a pro rata
16 basis, the energy savings goals and budgets approved in its
17 plan to reflect the additional 7 months of the plan's
18 operation.
19 (Source: P.A. 103-613, eff. 7-1-24.)
20 (Text of Section after amendment by P.A. 104-458)
21 Sec. 8-104. Natural gas energy efficiency programs.
22 (a) It is the policy of the State that natural gas
23 utilities and the Department of Commerce and Economic
24 Opportunity are required to use cost-effective energy
25 efficiency to reduce direct and indirect costs to consumers.
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1 It serves the public interest to allow natural gas utilities
2 to recover costs for reasonably and prudently incurred
3 expenses for cost-effective energy efficiency measures.
4 (b) For purposes of this Section, "energy efficiency"
5 means measures that reduce the amount of energy required to
6 achieve a given end use. "Energy efficiency" also includes
7 measures that reduce the total Btus of electricity and natural
8 gas needed to meet the end use or uses. "Cost-effective" means
9 that the measures satisfy the total resource cost test which,
10 for purposes of this Section, means a standard that is met if,
11 for an investment in energy efficiency, the benefit-cost ratio
12 is greater than one. The benefit-cost ratio is the ratio of the
13 net present value of the total benefits of the measures to the
14 net present value of the total costs as calculated over the
15 lifetime of the measures. The total resource cost test
16 compares the sum of avoided natural gas utility costs,
17 representing the benefits that accrue to the system and the
18 participant in the delivery of those efficiency measures, as
19 well as other quantifiable societal benefits, including
20 avoided electric utility costs, to the sum of all incremental
21 costs of end use measures (including both utility and
22 participant contributions), plus costs to administer, deliver,
23 and evaluate each demand-side measure, to quantify the net
24 savings obtained by substituting demand-side measures for
25 supply resources. In calculating avoided costs, reasonable
26 estimates shall be included for financial costs likely to be
HB1700 Enrolled - 671 - LRB104 08228 SPS 18278 b
1 imposed by future regulation of emissions of greenhouse gases.
2 The low-income programs described in item (4) of subsection
3 (f) of this Section shall not be required to meet the total
4 resource cost test.
5 (c) Natural gas utilities shall implement cost-effective
6 energy efficiency measures to meet at least the following
7 natural gas savings requirements, which shall be based upon
8 the total amount of gas delivered to retail customers, other
9 than the customers described in subsection (m) of this
10 Section, during calendar year 2009 multiplied by the
11 applicable percentage. Natural gas utilities may comply with
12 this Section by meeting the annual incremental savings goal in
13 the applicable year or by showing that total cumulative annual
14 savings within a multi-year planning period associated with
15 measures implemented after May 31, 2011 were equal to the sum
16 of each annual incremental savings requirement from the first
17 day of the multi-year planning period through the last day of
18 the multi-year planning period:
19 (1) 0.2% by May 31, 2012;
20 (2) an additional 0.4% by May 31, 2013, increasing
21 total savings to .6%;
22 (3) an additional 0.6% by May 31, 2014, increasing
23 total savings to 1.2%;
24 (4) an additional 0.8% by May 31, 2015, increasing
25 total savings to 2.0%;
26 (5) an additional 1% by May 31, 2016, increasing total
HB1700 Enrolled - 672 - LRB104 08228 SPS 18278 b
1 savings to 3.0%;
2 (6) an additional 1.2% by May 31, 2017, increasing
3 total savings to 4.2%;
4 (7) an additional 1.4% in the year commencing January
5 1, 2018;
6 (8) an additional 1.5% in the year commencing January
7 1, 2019; and
8 (9) an additional 1.5% in each 12-month period
9 thereafter.
10 (d) Notwithstanding the requirements of subsection (c) of
11 this Section, a natural gas utility shall limit the amount of
12 energy efficiency implemented in any multi-year reporting
13 period established by subsection (f) of Section 8-104 of this
14 Act, by an amount necessary to limit the estimated average
15 increase in the amounts paid by retail customers in connection
16 with natural gas service to no more than 2% in the applicable
17 multi-year reporting period. The energy savings requirements
18 in subsection (c) of this Section may be reduced by the
19 Commission for the subject plan, if the utility demonstrates
20 by substantial evidence that it is highly unlikely that the
21 requirements could be achieved without exceeding the
22 applicable spending limits in any multi-year reporting period.
23 No later than September 1, 2013, the Commission shall review
24 the limitation on the amount of energy efficiency measures
25 implemented pursuant to this Section and report to the General
26 Assembly, in the report required by subsection (k) of this
HB1700 Enrolled - 673 - LRB104 08228 SPS 18278 b
1 Section, its findings as to whether that limitation unduly
2 constrains the procurement of energy efficiency measures.
3 (e) The provisions of this subsection (e) apply to those
4 multi-year plans that commence prior to January 1, 2018. The
5 utility shall utilize 75% of the available funding associated
6 with energy efficiency programs approved by the Commission,
7 and may outsource various aspects of program development and
8 implementation. The remaining 25% of available funding shall
9 be used by the Department of Commerce and Economic Opportunity
10 to implement energy efficiency measures that achieve no less
11 than 20% of the requirements of subsection (c) of this
12 Section. Such measures shall be designed in conjunction with
13 the utility and approved by the Commission. The Department may
14 outsource development and implementation of energy efficiency
15 measures. A minimum of 10% of the entire portfolio of
16 cost-effective energy efficiency measures shall be procured
17 from local government, municipal corporations, school
18 districts, public institutions of higher education, and
19 community college districts. Five percent of the entire
20 portfolio of cost-effective energy efficiency measures may be
21 granted to local government and municipal corporations for
22 market transformation initiatives. The Department shall
23 coordinate the implementation of these measures and shall
24 integrate delivery of natural gas efficiency programs with
25 electric efficiency programs delivered pursuant to Section
26 8-103 of this Act, unless the Department can show that
HB1700 Enrolled - 674 - LRB104 08228 SPS 18278 b
1 integration is not feasible.
2 The apportionment of the dollars to cover the costs to
3 implement the Department's share of the portfolio of energy
4 efficiency measures shall be made to the Department once the
5 Department has executed rebate agreements, grants, or
6 contracts for energy efficiency measures and provided
7 supporting documentation for those rebate agreements, grants,
8 and contracts to the utility. The Department is authorized to
9 adopt any rules necessary and prescribe procedures in order to
10 ensure compliance by applicants in carrying out the purposes
11 of rebate agreements for energy efficiency measures
12 implemented by the Department made under this Section.
13 The details of the measures implemented by the Department
14 shall be submitted by the Department to the Commission in
15 connection with the utility's filing regarding the energy
16 efficiency measures that the utility implements.
17 The portfolio of measures, administered by both the
18 utilities and the Department, shall, in combination, be
19 designed to achieve the annual energy savings requirements set
20 forth in subsection (c) of this Section, as modified by
21 subsection (d) of this Section.
22 The utility and the Department shall agree upon a
23 reasonable portfolio of measures and determine the measurable
24 corresponding percentage of the savings goals associated with
25 measures implemented by the Department.
26 No utility shall be assessed a penalty under subsection
HB1700 Enrolled - 675 - LRB104 08228 SPS 18278 b
1 (f) of this Section for failure to make a timely filing if that
2 failure is the result of a lack of agreement with the
3 Department with respect to the allocation of responsibilities
4 or related costs or target assignments. In that case, the
5 Department and the utility shall file their respective plans
6 with the Commission and the Commission shall determine an
7 appropriate division of measures and programs that meets the
8 requirements of this Section.
9 (e-5) The provisions of this subsection (e-5) shall be
10 applicable to those multi-year plans that commence after
11 December 31, 2017. Natural gas utilities shall be responsible
12 for overseeing the design, development, and filing of their
13 efficiency plans with the Commission and may outsource
14 development and implementation of energy efficiency measures.
15 A minimum of 10% of the entire portfolio of cost-effective
16 energy efficiency measures shall be procured from local
17 government, municipal corporations, school districts, public
18 institutions of higher education, and community college
19 districts; unless a utility files a plan or amended plan under
20 the provisions of subsection (e-20), in which case the minimum
21 spend for measures from such public customers shall be equal
22 to at least 30% of non-residential spending. Five percent of
23 the entire portfolio of cost-effective energy efficiency
24 measures may be granted to local government and municipal
25 corporations for market transformation initiatives.
26 Through calendar year 2026, the utilities shall also
HB1700 Enrolled - 676 - LRB104 08228 SPS 18278 b
1 present a portfolio of energy efficiency measures
2 proportionate to the share of total annual utility revenues in
3 Illinois from households at or below 150% of the poverty
4 level. Such programs shall be targeted to households with
5 incomes at or below 80% of area median income.
6 (e-7) Beginning January 1, 2027, the following
7 requirements shall be in effect for efficiency programs
8 targeted to low-income households. For the purposes of this
9 Section, "low-income households" means households with incomes
10 at or below 80% of the area median income. Utilities shall
11 leverage existing State and federal low-income weatherization
12 programs and delivery capacity to the extent practicable.
13 Utilities shall also prioritize contracting with
14 organizations, government agencies, and businesses with a
15 track record of delivering weatherization services in
16 low-income communities in this State to deliver any low-income
17 programs that are not integrated with State and federal
18 low-income weatherization programs.
19 (e-8) Beginning January 1, 2027, the following
20 requirements shall be in effect for efficiency programs
21 targeted to low-income households, except for single-fuel gas
22 utilities with less than 1,000,000 customers:
23 (1) The portion of the entire budget for efficiency
24 programs that is spent on efficiency programs for
25 low-income households shall be no less than the greater
26 of: (A) 25% or (B) five percentage points more than the
HB1700 Enrolled - 677 - LRB104 08228 SPS 18278 b
1 proportion of total annual gas sales to non-opt-out retail
2 customers that are consumed by low-income households.
3 (2) The portion of spending on efficiency measures
4 that are targeted to low-income households that is
5 delivered through whole building weatherization programs
6 that comprehensively address building envelope efficiency
7 upgrade opportunities as well as other efficiency measures
8 shall be at least 80%.
9 (3) Utilities shall invest in health and safety
10 measures that are appropriate and necessary for
11 comprehensively weatherizing the single-family and
12 multi-family buildings of low-income households, with up
13 to 15% of income-qualified program spending made available
14 for such purposes.
15 (e-10) A utility providing approved energy efficiency
16 measures in this State shall be permitted to recover costs of
17 those measures through an automatic adjustment clause tariff
18 filed with and approved by the Commission. The tariff shall be
19 established outside the context of a general rate case and
20 shall be applicable to the utility's customers other than the
21 customers described in subsection (m) of this Section. Each
22 year the Commission shall initiate a review to reconcile any
23 amounts collected with the actual costs and to determine the
24 required adjustment to the annual tariff factor to match
25 annual expenditures.
26 (e-15) For those multi-year plans that commence prior to
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1 January 1, 2018, each utility shall include, in its recovery
2 of costs, the costs estimated for both the utility's and the
3 Department's implementation of energy efficiency measures.
4 Costs collected by the utility for measures implemented by the
5 Department shall be submitted to the Department pursuant to
6 Section 605-323 of the Civil Administrative Code of Illinois,
7 shall be deposited into the Energy Efficiency Portfolio
8 Standards Fund, and shall be used by the Department solely for
9 the purpose of implementing these measures. A utility shall
10 not be required to advance any moneys to the Department but
11 only to forward such funds as it has collected. The Department
12 shall report to the Commission on an annual basis regarding
13 the costs actually incurred by the Department in the
14 implementation of the measures. Any changes to the costs of
15 energy efficiency measures as a result of plan modifications
16 shall be appropriately reflected in amounts recovered by the
17 utility and turned over to the Department.
18 (e-20) The provisions of this Section shall be applicable
19 to multi-year plans that commence after the effective date of
20 this amendatory Act of the 104th General Assembly and are
21 submitted by single fuel service utilities on or before the
22 effective date of this amendatory Act of the 104th General
23 Assembly. A natural gas utility may propose, as part of its
24 submission of a multi-year plan, to increase the amount of
25 energy efficiency implemented in any multi-year planning
26 period above the level that can be achieved under the spending
HB1700 Enrolled - 679 - LRB104 08228 SPS 18278 b
1 cap set forth in subsection (d) of this Section. The first plan
2 to increase energy efficiency may be submitted as an amendment
3 to the utility's plan for calendar years 2027 through 2029,
4 but any amended plans must be filed with the Commission by
5 March 1, 2026 or the effective date of this amendatory Act of
6 the 104th General Assembly, whichever is later. In addition to
7 the policy goals established in subsection (f), the Commission
8 shall consider, in determining the appropriateness of a
9 proposal, whether the multi-year plan at a minimum:
10 (1) identifies a cost-effective portfolio of measures
11 and specifies the natural gas savings that are reasonably
12 likely to be achieved by the utility;
13 (2) demonstrates that the plan or modified plan, at a
14 minimum, will result in a portfolio of energy efficiency
15 measures that will provide more natural gas savings than
16 would have been achieved in a plan subject to subsection
17 (c);
18 (3) demonstrates that the plan reflects efforts to
19 coordinate delivery of electric utility efficiency
20 programs where such coordination can reduce costs,
21 increase effectiveness of outreach to customers, and
22 increase savings. A gas utility may count electricity
23 savings toward its gas efficiency savings goals subject to
24 the following limitations:
25 (A) only electricity savings produced as a result
26 of the installation of a gas efficiency measure, such
HB1700 Enrolled - 680 - LRB104 08228 SPS 18278 b
1 as reductions in electricity consumption by gas
2 furnace fans and electric air conditioners that
3 results from the installation of insulation measures
4 that reduce gas used for space heating, may be
5 counted;
6 (B) such electricity savings may only be counted
7 when they are generated in service territories not
8 served by electric utilities subject to Section
9 8-103B;
10 (C) no more than 5% of the total savings claimed
11 toward a gas utility's savings goal may be from such
12 electricity savings. For the purposes of this Section,
13 a kilowatt-hour of savings is equal to 0.03412 gas
14 therms;
15 (4) demonstrates whether an increase in funding is
16 necessary to meet the proposed increase in the amount of
17 energy efficiency;
18 (5) prioritizes income-qualified measures and
19 weatherization measures; and
20 (6) demonstrates that the multi-year plan strikes a
21 reasonable balance between the goals of the following:
22 (A) increasing cost-effective efficiency savings
23 and related greenhouse gas emission reductions;
24 (B) reducing overall gas system costs, recognizing
25 that efficiency investments reduce usage and, in turn,
26 the potential need for system investments over the
HB1700 Enrolled - 681 - LRB104 08228 SPS 18278 b
1 long-term;
2 (C) increasing energy affordability, especially
3 for low-income customers;
4 (D) within the residential sector, prioritizing
5 investment in weatherization and other measures that
6 reduce heating loads over gas equipment measures; and
7 (E) providing a diverse cross-section of
8 opportunities for customers of all rate classes to
9 participate in efficiency programs.
10 For single-fuel gas utilities with less than 1,000,000
11 customers, the following requirements shall be in effect for
12 efficiency programs targeted to low-income households:
13 (1) For gas utilities with greater than 300,000
14 customers, the portion of the entire budget for efficiency
15 programs that is spent on efficiency programs for
16 low-income households shall be no less than the greater of
17 (A) 25% or (B) five percentage points more than the
18 proportion of total annual gas sales to non-opt-out retail
19 customers that are consumed by low-income households. For
20 gas utilities with 300,000 or fewer customers, the portion
21 of the entire budget for efficiency programs that is spent
22 on efficiency programs for low-income households shall be
23 no less than the greater of (A) 15% or (B) five percentage
24 points more than the proportion of total annual gas sales
25 to non-opt-out retail customers that are consumed by
26 low-income households.
HB1700 Enrolled - 682 - LRB104 08228 SPS 18278 b
1 (2) The portion of spending on efficiency measures
2 targeted to low-income households that shall be delivered
3 through whole building weatherization programs that
4 comprehensively address building envelope efficiency
5 upgrade opportunities as well as other efficiency measures
6 shall be at least 80%.
7 (3) Utilities shall invest in health and safety
8 measures appropriate and necessary for comprehensively
9 weatherizing the single-family and multi-family buildings
10 of low-income households, with up to 15% of
11 income-qualified program spending made available for such
12 purposes.
13 As part of its order approving the plan or modified plan,
14 the Commission is authorized to:
15 (1) adjust the limitation on the amount of energy
16 efficiency measures implemented pursuant to subsection (d)
17 to the extent necessary to meet the increase in the amount
18 of energy efficiency approved by the Commission pursuant
19 to this subsection (e-20);
20 (2) adjust the public sector spending requirements
21 pursuant to subsection (e-5);
22 (3) adopt an incentive mechanism for the utility to
23 meet or exceed the goals associated with its proposed
24 multi-year plan if the utility meets or exceeds the
25 following minimum requirements:
26 (A) the utility proposes a plan budget over the
HB1700 Enrolled - 683 - LRB104 08228 SPS 18278 b
1 applicable multi-year period that is equal to or
2 greater than 5% of the amounts paid by non-opt-out
3 retail customers in connection with natural gas
4 service in the applicable multi-year period;
5 (B) for efficiency program years 2027 through
6 2029, the utility achieves average incremental annual
7 savings of at least 0.7% of total average annual gas
8 sales to non-opt-out retail customers over the years
9 2023 through 2025. For multi-year efficiency program
10 plans beginning after 2029, achieving average
11 incremental annual savings of at least 0.8% of total
12 average annual gas sales to non-opt-out retail
13 customers during the 3-year period ending 2 years
14 prior to the first year of the plan. In all multi-year
15 periods, the minimum incremental annual savings
16 requirement shall be reduced by 0.01 percentage points
17 for every 1 percentage point increase in low-income or
18 moderate-income spending above the minimum levels
19 required by subsection (e-5). In no event shall the
20 minimum incremental annual savings requirement be
21 reduced by more than 0.10 percentage points even if
22 low-income or moderate-income spending is increased by
23 more than 10 percentage points above the minimum
24 levels required by subsection (e-5). The Commission
25 may reduce the magnitude of the minimum savings
26 requirements under this subparagraph (B) if the
HB1700 Enrolled - 684 - LRB104 08228 SPS 18278 b
1 utility can demonstrate that it is not possible to
2 achieve them with a budget equal to 5% of revenues from
3 eligible customers while meeting other minimum
4 requirements. If a utility attempts to demonstrate
5 that it cannot meet the minimum savings requirements
6 in this paragraph with a budget equal to 5% of revenues
7 from eligible customers, and the Commission finds that
8 the utility has not made a sufficiently compelling
9 demonstration, the utility may withdraw its plan and
10 file a revised plan;
11 (C) the utility achieves an average savings life
12 of at least 12 years. Average savings lives may be
13 shorter than the average operational lives of measures
14 if the measures do not produce savings in every year in
15 which they operate or if the savings that measures
16 produce decline during their operational lives; and
17 (D) the utility spends at least 67% of all
18 financial incentive dollars on efficiency measures
19 that (1) reduce the space heating loads of buildings
20 through improvements such as to building envelopes,
21 ventilation systems, space heating distribution
22 systems, and space heating system controls; (2) reduce
23 the water heating loads of buildings such as through
24 insulation of hot water pipes, recovery and reuse of
25 heat from waste water and reductions in the amount of
26 hot water required to meet customer needs; or (3)
HB1700 Enrolled - 685 - LRB104 08228 SPS 18278 b
1 reduce the process heat loads of industrial
2 facilities. Any spending on health and safety measures
3 shall count toward this requirement. No financial
4 incentive spending on furnaces, boilers, water
5 heaters, and other gas-consuming equipment may be
6 counted toward this requirement; and
7 (4) for modified plans, require a compliance filing
8 from the utility to adjust budgets and natural gas savings
9 targets, if necessary, to reflect the final level of
10 customers opting out under subsection (m-1).
11 For the purposes of this subsection (e-20):
12 "Average savings life" means (i) the savings that will be
13 realized as a result of a utility's efficiency programs over
14 the lives of all efficiency measures divided by (ii) the
15 savings that will be produced in the first year after such
16 measures are installed.
17 "Moderate-income" means: (i) for dual fuel service
18 utilities, income between 80% of area median income and 300%
19 of the federal poverty limit; and (ii) for single fuel service
20 gas utilities, income between 80% of area median income and
21 100% of area median income.
22 (f) No later than October 1, 2010, each gas utility shall
23 file an energy efficiency plan with the Commission to meet the
24 energy efficiency standards through May 31, 2014. No later
25 than October 1, 2013, each gas utility shall file an energy
26 efficiency plan with the Commission to meet the energy
HB1700 Enrolled - 686 - LRB104 08228 SPS 18278 b
1 efficiency standards through May 31, 2017. Beginning in 2017
2 and every 4 years thereafter, each utility shall file an
3 energy efficiency plan with the Commission to meet the energy
4 efficiency standards for the next applicable 4-year period
5 beginning January 1 of the year following the filing. For
6 those multi-year plans commencing on January 1, 2018, each
7 utility shall file its proposed energy efficiency plan no
8 later than 30 days after the effective date of this amendatory
9 Act of the 99th General Assembly or May 1, 2017, whichever is
10 later. Beginning in 2021 and every 4 years thereafter, each
11 utility shall file its energy efficiency plan no later than
12 March 1. If a utility does not file such a plan on or before
13 the applicable filing deadline for the plan, then it shall
14 face a penalty of $100,000 per day until the plan is filed.
15 Each utility's plan shall set forth the utility's
16 proposals to meet the utility's portion of the energy
17 efficiency standards identified in subsection (c) of this
18 Section, as modified by subsection (d) of this Section, taking
19 into account the unique circumstances of the utility's service
20 territory. For those plans commencing after December 31, 2021,
21 the Commission shall seek public comment on the utility's plan
22 and shall issue an order approving or disapproving each plan
23 within 6 months after its submission. For those plans
24 commencing on January 1, 2018, the Commission shall seek
25 public comment on the utility's plan and shall issue an order
26 approving or disapproving each plan no later than August 31,
HB1700 Enrolled - 687 - LRB104 08228 SPS 18278 b
1 2017, or 105 days after the effective date of this amendatory
2 Act of the 99th General Assembly, whichever is later. If the
3 Commission disapproves a plan, the Commission shall, within 30
4 days, describe in detail the reasons for the disapproval and
5 describe a path by which the utility may file a revised draft
6 of the plan to address the Commission's concerns
7 satisfactorily. If the utility does not refile with the
8 Commission within 60 days after the disapproval, the utility
9 shall be subject to penalties at a rate of $100,000 per day
10 until the plan is filed. This process shall continue, and
11 penalties shall accrue, until the utility has successfully
12 filed a portfolio of energy efficiency measures. Penalties
13 shall be deposited into the Energy Efficiency Trust Fund and
14 the cost of any such penalties may not be recovered from
15 ratepayers. In submitting proposed energy efficiency plans and
16 funding levels to meet the savings goals adopted by this Act
17 the utility shall:
18 (1) Demonstrate that its proposed energy efficiency
19 measures will achieve the requirements that are identified
20 in subsection (c) of this Section, as modified by
21 subsection (d) of this Section.
22 (2) Present specific proposals to implement new
23 building and appliance standards that have been placed
24 into effect.
25 (3) Present estimates of the total amount paid for gas
26 service expressed on a per therm basis associated with the
HB1700 Enrolled - 688 - LRB104 08228 SPS 18278 b
1 proposed portfolio of measures designed to meet the
2 requirements that are identified in subsection (c) of this
3 Section, as modified by subsection (d) of this Section.
4 (4) For those multi-year plans that commence prior to
5 January 1, 2018, coordinate with the Department to present
6 a portfolio of energy efficiency measures proportionate to
7 the share of total annual utility revenues in Illinois
8 from households at or below 150% of the poverty level.
9 Such programs shall be targeted to households with incomes
10 at or below 80% of area median income.
11 (5) Demonstrate that its overall portfolio of energy
12 efficiency measures, not including low-income programs
13 described in item (4) of this subsection (f) and
14 subsection (e-5) of this Section, are cost-effective using
15 the total resource cost test and represent a diverse cross
16 section of opportunities for customers of all rate classes
17 to participate in the programs.
18 (6) Demonstrate that a gas utility affiliated with an
19 electric utility that is required to comply with Section
20 8-103 or 8-103B of this Act has integrated gas and
21 electric efficiency measures into a single program that
22 reduces program or participant costs and appropriately
23 allocates costs to gas and electric ratepayers. For those
24 multi-year plans that commence prior to January 1, 2018,
25 the Department shall integrate all gas and electric
26 programs it delivers in any such utilities' service
HB1700 Enrolled - 689 - LRB104 08228 SPS 18278 b
1 territories, unless the Department can show that
2 integration is not feasible or appropriate.
3 (7) Include a proposed cost recovery tariff mechanism
4 to fund the proposed energy efficiency measures and to
5 ensure the recovery of the prudently and reasonably
6 incurred costs of Commission-approved programs.
7 (8) Provide for quarterly status reports tracking
8 implementation of and expenditures for the utility's
9 portfolio of measures and, if applicable, the Department's
10 portfolio of measures, an annual independent review, and a
11 full independent evaluation of the multi-year results of
12 the performance and the cost-effectiveness of the
13 utility's and, if applicable, Department's portfolios of
14 measures and broader net program impacts and, to the
15 extent practical, for adjustment of the measures on a
16 going forward basis as a result of the evaluations. The
17 resources dedicated to evaluation shall not exceed 3% of
18 portfolio resources in any given multi-year period.
19 (g) No more than 3% of expenditures on energy efficiency
20 measures may be allocated for demonstration of breakthrough
21 equipment and devices.
22 (h) Illinois natural gas utilities that are affiliated by
23 virtue of a common parent company may, at the utilities'
24 request, be considered a single natural gas utility for
25 purposes of complying with this Section.
26 (i) If, after 3 years, a gas utility fails to meet the
HB1700 Enrolled - 690 - LRB104 08228 SPS 18278 b
1 efficiency standard specified in subsection (c) of this
2 Section as modified by subsection (d), then it shall make a
3 contribution to the Low-Income Home Energy Assistance Program.
4 The total liability for failure to meet the goal shall be
5 assessed as follows:
6 (1) a large gas utility shall pay $600,000;
7 (2) a medium gas utility shall pay $400,000; and
8 (3) a small gas utility shall pay $200,000.
9 For purposes of this Section, (i) a "large gas utility" is
10 a gas utility that on December 31, 2008, served more than
11 1,500,000 gas customers in Illinois; (ii) a "medium gas
12 utility" is a gas utility that on December 31, 2008, served
13 fewer than 1,500,000, but more than 500,000 gas customers in
14 Illinois; and (iii) a "small gas utility" is a gas utility that
15 on December 31, 2008, served fewer than 500,000 and more than
16 100,000 gas customers in Illinois. The costs of this
17 contribution may not be recovered from ratepayers.
18 If a gas utility fails to meet the efficiency standard
19 specified in subsection (c) of this Section, as modified by
20 subsection (d) of this Section, in any 2 consecutive
21 multi-year planning periods, then the responsibility for
22 implementing the utility's energy efficiency measures shall be
23 transferred to an independent program administrator selected
24 by the Commission. Reasonable and prudent costs incurred by
25 the independent program administrator to meet the efficiency
26 standard specified in subsection (c) of this Section, as
HB1700 Enrolled - 691 - LRB104 08228 SPS 18278 b
1 modified by subsection (d) of this Section, may be recovered
2 from the customers of the affected gas utilities, other than
3 customers described in subsection (m) of this Section. The
4 utility shall provide the independent program administrator
5 with all information and assistance necessary to perform the
6 program administrator's duties including but not limited to
7 customer, account, and energy usage data, and shall allow the
8 program administrator to include inserts in customer bills.
9 The utility may recover reasonable costs associated with any
10 such assistance.
11 (j) No utility shall be deemed to have failed to meet the
12 energy efficiency standards to the extent any such failure is
13 due to a failure of the Department.
14 (k) Not later than January 1, 2012, the Commission shall
15 develop and solicit public comment on a plan to foster
16 statewide coordination and consistency between statutorily
17 mandated natural gas and electric energy efficiency programs
18 to reduce program or participant costs or to improve program
19 performance. Not later than September 1, 2013, the Commission
20 shall issue a report to the General Assembly containing its
21 findings and recommendations.
22 (l) This Section does not apply to a gas utility that on
23 January 1, 2009, provided gas service to fewer than 100,000
24 customers in Illinois.
25 (m) Subsections (a) through (k) of this Section do not
26 apply to customers of a natural gas utility that have a North
HB1700 Enrolled - 692 - LRB104 08228 SPS 18278 b
1 American Industry Classification System code number that is
2 22111 or any such code number beginning with the digits 31, 32,
3 or 33 and (i) annual usage in the aggregate of 4 million therms
4 or more within the service territory of the affected gas
5 utility or with aggregate usage of 8 million therms or more in
6 this State and complying with the provisions of item (l) of
7 this subsection (m); or (ii) using natural gas as feedstock
8 and meeting the usage requirements described in item (i) of
9 this subsection (m), to the extent such annual feedstock usage
10 is greater than 60% of the customer's total annual usage of
11 natural gas.
12 (1) Customers described in this subsection (m) of this
13 Section shall apply, on a form approved on or before
14 October 1, 2009 by the Department, to the Department to be
15 designated as a self-directing customer ("SDC") or as an
16 exempt customer using natural gas as a feedstock from
17 which other products are made, including, but not limited
18 to, feedstock for a hydrogen plant, on or before the 1st
19 day of February, 2010. Thereafter, application may be made
20 not less than 6 months before the filing date of the gas
21 utility energy efficiency plan described in subsection (f)
22 of this Section; however, a new customer that commences
23 taking service from a natural gas utility after February
24 1, 2010 may apply to become a SDC or exempt customer up to
25 30 days after beginning service. Customers described in
26 this subsection (m) that have not already been approved by
HB1700 Enrolled - 693 - LRB104 08228 SPS 18278 b
1 the Department may apply to be designated a self-directing
2 customer or exempt customer, on a form approved by the
3 Department, between September 1, 2013 and September 30,
4 2013. Customer applications that are approved by the
5 Department under this amendatory Act of the 98th General
6 Assembly shall be considered to be a self-directing
7 customer or exempt customer, as applicable, for the
8 current 3-year planning period effective December 1, 2013.
9 Such application shall contain the following:
10 (A) the customer's certification that, at the time
11 of its application, it qualifies to be a SDC or exempt
12 customer described in this subsection (m) of this
13 Section;
14 (B) in the case of a SDC, the customer's
15 certification that it has established or will
16 establish by the beginning of the utility's multi-year
17 planning period commencing subsequent to the
18 application, and will maintain for accounting
19 purposes, an energy efficiency reserve account and
20 that the customer will accrue funds in said account to
21 be held for the purpose of funding, in whole or in
22 part, energy efficiency measures of the customer's
23 choosing, which may include, but are not limited to,
24 projects involving combined heat and power systems
25 that use the same energy source both for the
26 generation of electrical or mechanical power and the
HB1700 Enrolled - 694 - LRB104 08228 SPS 18278 b
1 production of steam or another form of useful thermal
2 energy or the use of combustible gas produced from
3 biomass, or both;
4 (C) in the case of a SDC, the customer's
5 certification that annual funding levels for the
6 energy efficiency reserve account will be equal to 2%
7 of the customer's cost of natural gas, composed of the
8 customer's commodity cost and the delivery service
9 charges paid to the gas utility, or $150,000,
10 whichever is less;
11 (D) in the case of a SDC, the customer's
12 certification that the required reserve account
13 balance will be capped at 3 years' worth of accruals
14 and that the customer may, at its option, make further
15 deposits to the account to the extent such deposit
16 would increase the reserve account balance above the
17 designated cap level;
18 (E) in the case of a SDC, the customer's
19 certification that by October 1 of each year,
20 beginning no sooner than October 1, 2012, the customer
21 will report to the Department information, for the
22 12-month period ending May 31 of the same year, on all
23 deposits and reductions, if any, to the reserve
24 account during the reporting year, and to the extent
25 deposits to the reserve account in any year are in an
26 amount less than $150,000, the basis for such reduced
HB1700 Enrolled - 695 - LRB104 08228 SPS 18278 b
1 deposits; reserve account balances by month; a
2 description of energy efficiency measures undertaken
3 by the customer and paid for in whole or in part with
4 funds from the reserve account; an estimate of the
5 energy saved, or to be saved, by the measure; and that
6 the report shall include a verification by an officer
7 or plant manager of the customer or by a registered
8 professional engineer or certified energy efficiency
9 trade professional that the funds withdrawn from the
10 reserve account were used for the energy efficiency
11 measures;
12 (F) in the case of an exempt customer, the
13 customer's certification of the level of gas usage as
14 feedstock in the customer's operation in a typical
15 year and that it will provide information establishing
16 this level, upon request of the Department;
17 (G) in the case of either an exempt customer or a
18 SDC, the customer's certification that it has provided
19 the gas utility or utilities serving the customer with
20 a copy of the application as filed with the
21 Department;
22 (H) in the case of either an exempt customer or a
23 SDC, certification of the natural gas utility or
24 utilities serving the customer in Illinois including
25 the natural gas utility accounts that are the subject
26 of the application; and
HB1700 Enrolled - 696 - LRB104 08228 SPS 18278 b
1 (I) in the case of either an exempt customer or a
2 SDC, a verification signed by a plant manager or an
3 authorized corporate officer attesting to the
4 truthfulness and accuracy of the information contained
5 in the application.
6 (2) The Department shall review the application to
7 determine that it contains the information described in
8 provisions (A) through (I) of item (1) of this subsection
9 (m), as applicable. The review shall be completed within
10 30 days after the date the application is filed with the
11 Department. Absent a determination by the Department
12 within the 30-day period, the applicant shall be
13 considered to be a SDC or exempt customer, as applicable,
14 for all subsequent multi-year planning periods, as of the
15 date of filing the application described in this
16 subsection (m). If the Department determines that the
17 application does not contain the applicable information
18 described in provisions (A) through (I) of item (1) of
19 this subsection (m), it shall notify the customer, in
20 writing, of its determination that the application does
21 not contain the required information and identify the
22 information that is missing, and the customer shall
23 provide the missing information within 15 working days
24 after the date of receipt of the Department's
25 notification.
26 (3) The Department shall have the right to audit the
HB1700 Enrolled - 697 - LRB104 08228 SPS 18278 b
1 information provided in the customer's application and
2 annual reports to ensure continued compliance with the
3 requirements of this subsection. Based on the audit, if
4 the Department determines the customer is no longer in
5 compliance with the requirements of items (A) through (I)
6 of item (1) of this subsection (m), as applicable, the
7 Department shall notify the customer in writing of the
8 noncompliance. The customer shall have 30 days to
9 establish its compliance, and failing to do so, may have
10 its status as a SDC or exempt customer revoked by the
11 Department. The Department shall treat all information
12 provided by any customer seeking SDC status or exemption
13 from the provisions of this Section as strictly
14 confidential.
15 (4) Upon request, or on its own motion, the Commission
16 may open an investigation, no more than once every 3 years
17 and not before October 1, 2014, to evaluate the
18 effectiveness of the self-directing program described in
19 this subsection (m).
20 Customers described in this subsection (m) that applied to
21 the Department on January 3, 2013, were approved by the
22 Department on February 13, 2013 to be a self-directing
23 customer or exempt customer, and receive natural gas from a
24 utility that provides gas service to at least 500,000 retail
25 customers in Illinois and electric service to at least
26 1,000,000 retail customers in Illinois shall be considered to
HB1700 Enrolled - 698 - LRB104 08228 SPS 18278 b
1 be a self-directing customer or exempt customer, as
2 applicable, for the current 3-year planning period effective
3 December 1, 2013.
4 (m-1) For utilities that file an amended plan for the
5 period covering calendar years 2027 through 2029, and for all
6 utilities for all calendar years covered by a multi-year plan
7 commencing on or after January 1, 2030, subsections (a)
8 through (k) of this Section do not apply to eligible customers
9 of a natural gas utility that have chosen to opt out of
10 multi-year plans.
11 (1) For purposes of this subsection (m-1), "eligible
12 customer" means any retail customer of a natural gas
13 utility, except for federal, State, municipal and other
14 public customers, with a North American Industry
15 Classification System code number that is 22111 or any
16 such code number beginning with the digits 31, 32, or 33
17 and (i) annual usage in the aggregate of 4,000,000 therms
18 or more within the service territory of the affected gas
19 utility or with aggregate usage of 8,000,000 therms or
20 more in this State; or (ii) using natural gas as feedstock
21 and meeting the usage requirements described in item (i)
22 of this paragraph (1), to the extent such annual feedstock
23 usage is greater than 60% of the customer's total annual
24 usage of natural gas. A determination of whether this
25 subsection is applicable to a customer shall be made for
26 each multi-year plan beginning after January 1, 2026. The
HB1700 Enrolled - 699 - LRB104 08228 SPS 18278 b
1 criteria for determining whether this subsection is
2 applicable shall be the 12 consecutive billing periods
3 prior to the start of the first year of each such
4 multi-year plan.
5 (2) Within 45 days after the effective date of this
6 amendatory Act of the 104th General Assembly, the
7 Commission shall prescribe the form for notice required
8 for opting out of energy efficiency programs. Within 120
9 days after the Commission's initial issuance of the form
10 for notice, customers described in paragraph (1) of this
11 subsection (m-1) may submit completed forms to the natural
12 gas utility. Thereafter, forms must be submitted to the
13 natural gas utility not less than 6 months before the
14 filing date of the gas utility energy efficiency plan
15 described in subsection (f) of this Section; however, a
16 new customer that commences taking service from a natural
17 gas utility after January 1, 2026 may submit a form up to
18 30 days after beginning service. The form for notice for
19 opting out of natural gas energy efficiency programs shall
20 contain the following:
21 (A) a statement indicating that the customer has
22 elected to opt-out;
23 (B) the account numbers for the customer accounts
24 to which the opt out shall apply;
25 (C) the mailing address associated with each
26 customer account identified under subparagraph (B);
HB1700 Enrolled - 700 - LRB104 08228 SPS 18278 b
1 (D) the customer's certification that, at the time
2 its form was submitted, it qualifies as an eligible
3 customer, as described in paragraph (1) of this
4 subsection (m-1);
5 (E) an American Society of Heating, Refrigerating,
6 and Air Conditioning Engineers (ASHRAE) level 2 or
7 higher audit report conducted by an independent
8 third-party expert identifying cost-effective energy
9 efficiency project opportunities that could be
10 invested in over the next 10 years. A customer with a
11 specialized process may use a self-audit process in
12 lieu of an ASHRAE audit;
13 (F) a description of the customer's plans to
14 reallocate funds toward internal energy efficiency
15 efforts identified in the subparagraph (E) report,
16 including, but not limited to: (i) strategic energy
17 management or other programs, including descriptions
18 of targeted buildings, equipment and operations; (ii)
19 eligible energy efficiency measures; and (iii)
20 expected energy savings, itemized by technology. If
21 the subparagraph (E) audit report identifies that the
22 customer currently utilizes the best available energy
23 efficient technology, equipment, programs, and
24 operations, the customer may provide a statement that
25 more efficient technology, equipment, programs, and
26 operations are not reasonably available as a means of
HB1700 Enrolled - 701 - LRB104 08228 SPS 18278 b
1 satisfying this subparagraph (F); and
2 (G) a verification signed by a plant manager or an
3 authorized corporate officer attesting to the
4 truthfulness and accuracy of the information contained
5 in the application.
6 (3) Upon receipt of a properly and timely noticed
7 request for opt out submitted by an eligible large private
8 energy customer, the natural gas utility shall grant the
9 request and file the request with the Commission, and,
10 beginning January 1 of the first year of the next
11 multi-year energy efficiency plan cycle, the opted out
12 customer shall no longer be assessed the costs of the plan
13 and shall be prohibited from participating in that
14 multi-year plan cycle to give the natural gas utility the
15 certainty to design program plan proposals.
16 (4) The request to opt out is only valid for the
17 requested plan cycle. An eligible large private energy
18 customer must also request to opt out for future energy
19 efficiency plan cycles, otherwise the customer will be
20 included in the future energy efficiency plan cycle.
21 (n) The applicability of this Section to customers
22 described in subsection (m) of this Section is conditioned on
23 the existence of the SDC program. In no event will any
24 provision of this Section apply to such customers after
25 January 1, 2020.
26 (o) Utilities' 3-year energy efficiency plans approved by
HB1700 Enrolled - 702 - LRB104 08228 SPS 18278 b
1 the Commission on or before the effective date of this
2 amendatory Act of the 99th General Assembly for the period
3 June 1, 2014 through May 31, 2017 shall continue to be in force
4 and effect through December 31, 2017 so that the energy
5 efficiency programs set forth in those plans continue to be
6 offered during the period June 1, 2017 through December 31,
7 2017. Each utility is authorized to increase, on a pro rata
8 basis, the energy savings goals and budgets approved in its
9 plan to reflect the additional 7 months of the plan's
10 operation.
11 (Source: P.A. 103-613, eff. 7-1-24; 104-458, eff. 6-1-26.)
12 (220 ILCS 5/16-107.5)
13 (Text of Section before amendment by P.A. 104-458)
14 Sec. 16-107.5. Net electricity metering.
15 (a) The General Assembly finds and declares that a program
16 to provide net electricity metering, as defined in this
17 Section, for eligible customers can encourage private
18 investment in renewable energy resources, stimulate economic
19 growth, enhance the continued diversification of Illinois'
20 energy resource mix, and protect the Illinois environment.
21 Further, to achieve the goals of this Act that robust options
22 for customer-site distributed generation continue to thrive in
23 Illinois, the General Assembly finds that a predictable
24 transition must be ensured for customers between full net
25 metering at the retail electricity rate to the distribution
HB1700 Enrolled - 703 - LRB104 08228 SPS 18278 b
1 generation rebate described in Section 16-107.6.
2 (b) As used in this Section, (i) "community renewable
3 generation project" shall have the meaning set forth in
4 Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
5 customer" means a retail customer that owns, hosts, or
6 operates, including any third-party owned systems, a solar,
7 wind, or other eligible renewable electrical generating
8 facility that is located on the customer's premises or
9 customer's side of the billing meter and is intended primarily
10 to offset the customer's own current or future electrical
11 requirements; (iii) "electricity provider" means an electric
12 utility or alternative retail electric supplier; (iv)
13 "eligible renewable electrical generating facility" means a
14 generator, which may include the co-location of an energy
15 storage system, that is interconnected under rules adopted by
16 the Commission and is powered by solar electric energy, wind,
17 dedicated crops grown for electricity generation, agricultural
18 residues, untreated and unadulterated wood waste, livestock
19 manure, anaerobic digestion of livestock or food processing
20 waste, fuel cells or microturbines powered by renewable fuels,
21 or hydroelectric energy; (v) "net electricity metering" (or
22 "net metering") means the measurement, during the billing
23 period applicable to an eligible customer, of the net amount
24 of electricity supplied by an electricity provider to the
25 customer or provided to the electricity provider by the
26 customer or subscriber; (vi) "subscriber" shall have the
HB1700 Enrolled - 704 - LRB104 08228 SPS 18278 b
1 meaning as set forth in Section 1-10 of the Illinois Power
2 Agency Act; (vii) "subscription" shall have the meaning set
3 forth in Section 1-10 of the Illinois Power Agency Act; (viii)
4 "energy storage system" means commercially available
5 technology that is capable of absorbing energy and storing it
6 for a period of time for use at a later time, including, but
7 not limited to, electrochemical, thermal, and
8 electromechanical technologies, and may be interconnected
9 behind the customer's meter or interconnected behind its own
10 meter; and (ix) "future electrical requirements" means modeled
11 electrical requirements upon occupation of a new or vacant
12 property, and other reasonable expectations of future
13 electrical use, as well as, for occupied properties, a
14 reasonable approximation of the annual load of 2 electric
15 vehicles and, for non-electric heating customers, a reasonable
16 approximation of the incremental electric load associated with
17 fuel switching. The approximations shall be applied to the
18 appropriate net metering tariff and do not need to be unique to
19 each individual eligible customer. The utility shall submit
20 these approximations to the Commission for review,
21 modification, and approval.
22 (c) A net metering facility shall be equipped with
23 metering equipment that can measure the flow of electricity in
24 both directions at the same rate.
25 (1) For eligible customers whose electric service has
26 not been declared competitive pursuant to Section 16-113
HB1700 Enrolled - 705 - LRB104 08228 SPS 18278 b
1 of this Act as of July 1, 2011 and whose electric delivery
2 service is provided and measured on a kilowatt-hour basis
3 and electric supply service is not provided based on
4 hourly pricing, this shall typically be accomplished
5 through use of a single, bi-directional meter. If the
6 eligible customer's existing electric revenue meter does
7 not meet this requirement, the electricity provider shall
8 arrange for the local electric utility or a meter service
9 provider to install and maintain a new revenue meter at
10 the electricity provider's expense, which may be the smart
11 meter described by subsection (b) of Section 16-108.5 of
12 this Act.
13 (2) For eligible customers whose electric service has
14 not been declared competitive pursuant to Section 16-113
15 of this Act as of July 1, 2011 and whose electric delivery
16 service is provided and measured on a kilowatt demand
17 basis and electric supply service is not provided based on
18 hourly pricing, this shall typically be accomplished
19 through use of a dual channel meter capable of measuring
20 the flow of electricity both into and out of the
21 customer's facility at the same rate and ratio. If such
22 customer's existing electric revenue meter does not meet
23 this requirement, then the electricity provider shall
24 arrange for the local electric utility or a meter service
25 provider to install and maintain a new revenue meter at
26 the electricity provider's expense, which may be the smart
HB1700 Enrolled - 706 - LRB104 08228 SPS 18278 b
1 meter described by subsection (b) of Section 16-108.5 of
2 this Act.
3 (3) For all other eligible customers, until such time
4 as the local electric utility installs a smart meter, as
5 described by subsection (b) of Section 16-108.5 of this
6 Act, the electricity provider may arrange for the local
7 electric utility or a meter service provider to install
8 and maintain metering equipment capable of measuring the
9 flow of electricity both into and out of the customer's
10 facility at the same rate and ratio, typically through the
11 use of a dual channel meter. If the eligible customer's
12 existing electric revenue meter does not meet this
13 requirement, then the costs of installing such equipment
14 shall be paid for by the customer.
15 (d) An electricity provider shall measure and charge or
16 credit for the net electricity supplied to eligible customers
17 or provided by eligible customers whose electric service has
18 not been declared competitive pursuant to Section 16-113 of
19 this Act as of July 1, 2011 and whose electric delivery service
20 is provided and measured on a kilowatt-hour basis and electric
21 supply service is not provided based on hourly pricing in the
22 following manner:
23 (1) If the amount of electricity used by the customer
24 during the billing period exceeds the amount of
25 electricity produced by the customer, the electricity
26 provider shall charge the customer for the net electricity
HB1700 Enrolled - 707 - LRB104 08228 SPS 18278 b
1 supplied to and used by the customer as provided in
2 subsection (e-5) of this Section.
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, the electricity provider supplying that customer
7 shall apply a 1:1 kilowatt-hour credit to a subsequent
8 bill for service to the customer for the net electricity
9 supplied to the electricity provider. The electricity
10 provider shall continue to carry over any excess
11 kilowatt-hour credits earned and apply those credits to
12 subsequent billing periods to offset any
13 customer-generator consumption in those billing periods
14 until all credits are used or until the end of the
15 annualized period.
16 (3) At the end of the year or annualized over the
17 period that service is supplied by means of net metering,
18 or in the event that the retail customer terminates
19 service with the electricity provider prior to the end of
20 the year or the annualized period, any remaining credits
21 in the customer's account shall expire.
22 (d-5) An electricity provider shall measure and charge or
23 credit for the net electricity supplied to eligible customers
24 or provided by eligible customers whose electric service has
25 not been declared competitive pursuant to Section 16-113 of
26 this Act as of July 1, 2011 and whose electric delivery service
HB1700 Enrolled - 708 - LRB104 08228 SPS 18278 b
1 is provided and measured on a kilowatt-hour basis and electric
2 supply service is provided based on hourly pricing or
3 time-of-use rates in the following manner:
4 (1) If the amount of electricity used by the customer
5 during any hourly period or time-of-use period exceeds the
6 amount of electricity produced by the customer, the
7 electricity provider shall charge the customer for the net
8 electricity supplied to and used by the customer according
9 to the terms of the contract or tariff to which the same
10 customer would be assigned to or be eligible for if the
11 customer was not a net metering customer.
12 (2) If the amount of electricity produced by a
13 customer during any hourly period or time-of-use period
14 exceeds the amount of electricity used by the customer
15 during that hourly period or time-of-use period, the
16 energy provider shall apply a credit for the net
17 kilowatt-hours produced in such period. The credit shall
18 consist of an energy credit and a delivery service credit.
19 The energy credit shall be valued at the same price per
20 kilowatt-hour as the electric service provider would
21 charge for kilowatt-hour energy sales during that same
22 hourly period or time-of-use period. The delivery credit
23 shall be equal to the net kilowatt-hours produced in such
24 hourly period or time-of-use period times a credit that
25 reflects all kilowatt-hour based charges in the customer's
26 electric service rate, excluding energy charges.
HB1700 Enrolled - 709 - LRB104 08228 SPS 18278 b
1 (e) An electricity provider shall measure and charge or
2 credit for the net electricity supplied to eligible customers
3 whose electric service has not been declared competitive
4 pursuant to Section 16-113 of this Act as of July 1, 2011 and
5 whose electric delivery service is provided and measured on a
6 kilowatt demand basis and electric supply service is not
7 provided based on hourly pricing in the following manner:
8 (1) If the amount of electricity used by the customer
9 during the billing period exceeds the amount of
10 electricity produced by the customer, then the electricity
11 provider shall charge the customer for the net electricity
12 supplied to and used by the customer as provided in
13 subsection (e-5) of this Section. The customer shall
14 remain responsible for all taxes, fees, and utility
15 delivery charges that would otherwise be applicable to the
16 net amount of electricity used by the customer.
17 (2) If the amount of electricity produced by a
18 customer during the billing period exceeds the amount of
19 electricity used by the customer during that billing
20 period, then the electricity provider supplying that
21 customer shall apply a 1:1 kilowatt-hour credit that
22 reflects the kilowatt-hour based charges in the customer's
23 electric service rate to a subsequent bill for service to
24 the customer for the net electricity supplied to the
25 electricity provider. The electricity provider shall
26 continue to carry over any excess kilowatt-hour credits
HB1700 Enrolled - 710 - LRB104 08228 SPS 18278 b
1 earned and apply those credits to subsequent billing
2 periods to offset any customer-generator consumption in
3 those billing periods until all credits are used or until
4 the end of the annualized period.
5 (3) At the end of the year or annualized over the
6 period that service is supplied by means of net metering,
7 or in the event that the retail customer terminates
8 service with the electricity provider prior to the end of
9 the year or the annualized period, any remaining credits
10 in the customer's account shall expire.
11 (e-5) An electricity provider shall provide electric
12 service to eligible customers who utilize net metering at
13 non-discriminatory rates that are identical, with respect to
14 rate structure, retail rate components, and any monthly
15 charges, to the rates that the customer would be charged if not
16 a net metering customer. An electricity provider shall not
17 charge net metering customers any fee or charge or require
18 additional equipment, insurance, or any other requirements not
19 specifically authorized by interconnection standards
20 authorized by the Commission, unless the fee, charge, or other
21 requirement would apply to other similarly situated customers
22 who are not net metering customers. The customer will remain
23 responsible for all taxes, fees, and utility delivery charges
24 that would otherwise be applicable to the net amount of
25 electricity used by the customer. Subsections (c) through (e)
26 of this Section shall not be construed to prevent an
HB1700 Enrolled - 711 - LRB104 08228 SPS 18278 b
1 arms-length agreement between an electricity provider and an
2 eligible customer that sets forth different prices, terms, and
3 conditions for the provision of net metering service,
4 including, but not limited to, the provision of the
5 appropriate metering equipment for non-residential customers.
6 (f) Notwithstanding the requirements of subsections (c)
7 through (e-5) of this Section, an electricity provider must
8 require dual-channel metering for customers operating eligible
9 renewable electrical generating facilities to whom the
10 provisions of neither subsection (d), (d-5), nor (e) of this
11 Section apply. In such cases, electricity charges and credits
12 shall be determined as follows:
13 (1) The electricity provider shall assess and the
14 customer remains responsible for all taxes, fees, and
15 utility delivery charges that would otherwise be
16 applicable to the gross amount of kilowatt-hours supplied
17 to the eligible customer by the electricity provider.
18 (2) Each month that service is supplied by means of
19 dual-channel metering, the electricity provider shall
20 compensate the eligible customer for any excess
21 kilowatt-hour credits at the electricity provider's
22 avoided cost of electricity supply over the monthly period
23 or as otherwise specified by the terms of a power-purchase
24 agreement negotiated between the customer and electricity
25 provider.
26 (3) For all eligible net metering customers taking
HB1700 Enrolled - 712 - LRB104 08228 SPS 18278 b
1 service from an electricity provider under contracts or
2 tariffs employing hourly or time-of-use rates, any monthly
3 consumption of electricity shall be calculated according
4 to the terms of the contract or tariff to which the same
5 customer would be assigned to or be eligible for if the
6 customer was not a net metering customer. When those same
7 customer-generators are net generators during any discrete
8 hourly or time-of-use period, the net kilowatt-hours
9 produced shall be valued at the same price per
10 kilowatt-hour as the electric service provider would
11 charge for retail kilowatt-hour sales during that same
12 time-of-use period.
13 (g) For purposes of federal and State laws providing
14 renewable energy credits or greenhouse gas credits, the
15 eligible customer shall be treated as owning and having title
16 to the renewable energy attributes, renewable energy credits,
17 and greenhouse gas emission credits related to any electricity
18 produced by the qualified generating unit. The electricity
19 provider may not condition participation in a net metering
20 program on the signing over of a customer's renewable energy
21 credits; provided, however, this subsection (g) shall not be
22 construed to prevent an arms-length agreement between an
23 electricity provider and an eligible customer that sets forth
24 the ownership or title of the credits.
25 (h) Within 120 days after the effective date of this
26 amendatory Act of the 95th General Assembly, the Commission
HB1700 Enrolled - 713 - LRB104 08228 SPS 18278 b
1 shall establish standards for net metering and, if the
2 Commission has not already acted on its own initiative,
3 standards for the interconnection of eligible renewable
4 generating equipment to the utility system. The
5 interconnection standards shall address any procedural
6 barriers, delays, and administrative costs associated with the
7 interconnection of customer-generation while ensuring the
8 safety and reliability of the units and the electric utility
9 system. The Commission shall consider the Institute of
10 Electrical and Electronics Engineers (IEEE) Standard 1547 and
11 the issues of (i) reasonable and fair fees and costs, (ii)
12 clear timelines for major milestones in the interconnection
13 process, (iii) nondiscriminatory terms of agreement, and (iv)
14 any best practices for interconnection of distributed
15 generation.
16 (h-5) Within 90 days after the effective date of this
17 amendatory Act of the 102nd General Assembly, the Commission
18 shall:
19 (1) establish an Interconnection Working Group. The
20 working group shall include representatives from electric
21 utilities, developers of renewable electric generating
22 facilities, other industries that regularly apply for
23 interconnection with the electric utilities,
24 representatives of distributed generation customers, the
25 Commission Staff, and such other stakeholders with a
26 substantial interest in the topics addressed by the
HB1700 Enrolled - 714 - LRB104 08228 SPS 18278 b
1 Interconnection Working Group. The Interconnection Working
2 Group shall address at least the following issues:
3 (A) cost and best available technology for
4 interconnection and metering, including the
5 standardization and publication of standard costs;
6 (B) transparency, accuracy and use of the
7 distribution interconnection queue and hosting
8 capacity maps;
9 (C) distribution system upgrade cost avoidance
10 through use of advanced inverter functions;
11 (D) predictability of the queue management process
12 and enforcement of timelines;
13 (E) benefits and challenges associated with group
14 studies and cost sharing;
15 (F) minimum requirements for application to the
16 interconnection process and throughout the
17 interconnection process to avoid queue clogging
18 behavior;
19 (G) process and customer service for
20 interconnecting customers adopting distributed energy
21 resources, including energy storage;
22 (H) options for metering distributed energy
23 resources, including energy storage;
24 (I) interconnection of new technologies, including
25 smart inverters and energy storage;
26 (J) collect, share, and examine data on Level 1
HB1700 Enrolled - 715 - LRB104 08228 SPS 18278 b
1 interconnection costs, including cost and type of
2 upgrades required for interconnection, and use this
3 data to inform the final standardized cost of Level 1
4 interconnection; and
5 (K) such other technical, policy, and tariff
6 issues related to and affecting interconnection
7 performance and customer service as determined by the
8 Interconnection Working Group.
9 The Commission may create subcommittees of the
10 Interconnection Working Group to focus on specific issues
11 of importance, as appropriate. The Interconnection Working
12 Group shall report to the Commission on recommended
13 improvements to interconnection rules and tariffs and
14 policies as determined by the Interconnection Working
15 Group at least every 6 months. Such reports shall include
16 consensus recommendations of the Interconnection Working
17 Group and, if applicable, additional recommendations for
18 which consensus was not reached. The Commission shall use
19 the report from the Interconnection Working Group to
20 determine whether processes should be commenced to
21 formally codify or implement the recommendations;
22 (2) create or contract for an Ombudsman to resolve
23 interconnection disputes through non-binding arbitration.
24 The Ombudsman may be paid in full or in part through fees
25 levied on the initiators of the dispute; and
26 (3) determine a single standardized cost for Level 1
HB1700 Enrolled - 716 - LRB104 08228 SPS 18278 b
1 interconnections, which shall not exceed $200.
2 (i) All electricity providers shall begin to offer net
3 metering no later than April 1, 2008.
4 (j) An electricity provider shall provide net metering to
5 eligible customers according to subsections (d), (d-5), and
6 (e). Eligible renewable electrical generating facilities for
7 which eligible customers registered for net metering before
8 January 1, 2025 shall continue to receive net metering
9 services according to subsections (d), (d-5), and (e) of this
10 Section for the lifetime of the system, regardless of whether
11 those retail customers change electricity providers or whether
12 the retail customer benefiting from the system changes. On and
13 after January 1, 2025, any eligible customer that applies for
14 net metering and previously would have qualified under
15 subsections (d), (d-5), or (e) shall only be eligible for net
16 metering as described in subsection (n).
17 (k) Each electricity provider shall maintain records and
18 report annually to the Commission the total number of net
19 metering customers served by the provider, as well as the
20 type, capacity, and energy sources of the generating systems
21 used by the net metering customers. Nothing in this Section
22 shall limit the ability of an electricity provider to request
23 the redaction of information deemed by the Commission to be
24 confidential business information.
25 (l)(1) Notwithstanding the definition of "eligible
26 customer" in item (ii) of subsection (b) of this Section, each
HB1700 Enrolled - 717 - LRB104 08228 SPS 18278 b
1 electricity provider shall allow net metering as set forth in
2 this subsection (l) and for the following projects, provided
3 that only electric utilities serving more than 200,000
4 customers as of January 1, 2021 shall provide net metering for
5 projects that are eligible for subparagraph (C) of this
6 paragraph (1) and have energized after the effective date of
7 this amendatory Act of the 102nd General Assembly:
8 (A) properties owned or leased by multiple customers
9 that contribute to the operation of an eligible renewable
10 electrical generating facility through an ownership or
11 leasehold interest of at least 200 watts in such facility,
12 such as a community-owned wind project, a community-owned
13 biomass project, a community-owned solar project, or a
14 community methane digester processing livestock waste from
15 multiple sources, provided that the facility is also
16 located within the utility's service territory;
17 (B) individual units, apartments, or properties
18 located in a single building that are owned or leased by
19 multiple customers and collectively served by a common
20 eligible renewable electrical generating facility, such as
21 an office or apartment building, a shopping center or
22 strip mall served by photovoltaic panels on the roof; and
23 (C) subscriptions to community renewable generation
24 projects, including community renewable generation
25 projects on the customer's side of the billing meter of a
26 host facility and partially used for the customer's own
HB1700 Enrolled - 718 - LRB104 08228 SPS 18278 b
1 load.
2 In addition, the nameplate capacity of the eligible
3 renewable electric generating facility that serves the demand
4 of the properties, units, or apartments identified in
5 paragraphs (1) and (2) of this subsection (l) shall not exceed
6 5,000 kilowatts in nameplate capacity in total. Any eligible
7 renewable electrical generating facility or community
8 renewable generation project that is powered by photovoltaic
9 electric energy and installed after the effective date of this
10 amendatory Act of the 99th General Assembly must be installed
11 by a qualified person in compliance with the requirements of
12 Section 16-128A of the Public Utilities Act and any rules or
13 regulations adopted thereunder.
14 (2) Notwithstanding anything to the contrary, an
15 electricity provider shall provide credits for the electricity
16 produced by the projects described in paragraph (1) of this
17 subsection (l). The electricity provider shall provide credits
18 that include at least energy supply, capacity, transmission,
19 and, if applicable, the purchased energy adjustment on the
20 subscriber's monthly bill equal to the subscriber's share of
21 the production of electricity from the project, as determined
22 by paragraph (3) of this subsection (l). For customers with
23 transmission or capacity charges not charged on a
24 kilowatt-hour basis, the electricity provider shall prepare a
25 reasonable approximation of the kilowatt-hour equivalent value
26 and provide that value as a monetary credit. The electricity
HB1700 Enrolled - 719 - LRB104 08228 SPS 18278 b
1 provider shall submit these approximation methodologies to the
2 Commission for review, modification, and approval.
3 Notwithstanding anything to the contrary, customers on payment
4 plans or participating in budget billing programs shall have
5 credits applied on a monthly basis.
6 (3) Notwithstanding anything to the contrary and
7 regardless of whether a subscriber to an eligible community
8 renewable generation project receives power and energy service
9 from the electric utility or an alternative retail electric
10 supplier, for projects eligible under paragraph (C) of
11 subparagraph (1) of this subsection (l), electric utilities
12 serving more than 200,000 customers as of January 1, 2021
13 shall provide the monetary credits to a subscriber's
14 subsequent bill for the electricity produced by community
15 renewable generation projects. The electric utility shall
16 provide monetary credits to a subscriber's subsequent bill at
17 the utility's total price to compare equal to the subscriber's
18 share of the production of electricity from the project, as
19 determined by paragraph (5) of this subsection (l). For the
20 purposes of this subsection, "total price to compare" means
21 the rate or rates published by the Illinois Commerce
22 Commission for energy supply for eligible customers receiving
23 supply service from the electric utility, and shall include
24 energy, capacity, transmission, and the purchased energy
25 adjustment. Notwithstanding anything to the contrary,
26 customers on payment plans or participating in budget billing
HB1700 Enrolled - 720 - LRB104 08228 SPS 18278 b
1 programs shall have credits applied on a monthly basis. Any
2 applicable credit or reduction in load obligation from the
3 production of the community renewable generating projects
4 receiving a credit under this subsection shall be credited to
5 the electric utility to offset the cost of providing the
6 credit. To the extent that the credit or load obligation
7 reduction does not completely offset the cost of providing the
8 credit to subscribers of community renewable generation
9 projects as described in this subsection, the electric utility
10 may recover the remaining costs through its Multi-Year Rate
11 Plan. All electric utilities serving 200,000 or fewer
12 customers as of January 1, 2021 shall only provide the
13 monetary credits to a subscriber's subsequent bill for the
14 electricity produced by community renewable generation
15 projects if the subscriber receives power and energy service
16 from the electric utility. Alternative retail electric
17 suppliers providing power and energy service to a subscriber
18 located within the service territory of an electric utility
19 not subject to Sections 16-108.18 and 16-118 shall provide the
20 monetary credits to the subscriber's subsequent bill for the
21 electricity produced by community renewable generation
22 projects.
23 (4) If requested by the owner or operator of a community
24 renewable generating project, an electric utility serving more
25 than 200,000 customers as of January 1, 2021 shall enter into a
26 net crediting agreement with the owner or operator to include
HB1700 Enrolled - 721 - LRB104 08228 SPS 18278 b
1 a subscriber's subscription fee on the subscriber's monthly
2 electric bill and provide the subscriber with a net credit
3 equivalent to the total bill credit value for that generation
4 period minus the subscription fee, provided the subscription
5 fee is structured as a fixed percentage of bill credit value.
6 The net crediting agreement shall set forth payment terms from
7 the electric utility to the owner or operator of the community
8 renewable generating project, and the electric utility may
9 charge a net crediting fee to the owner or operator of a
10 community renewable generating project that may not exceed 2%
11 of the bill credit value. Notwithstanding anything to the
12 contrary, an electric utility serving 200,000 customers or
13 fewer as of January 1, 2021 shall not be obligated to enter
14 into a net crediting agreement with the owner or operator of a
15 community renewable generating project.
16 (5) For the purposes of facilitating net metering, the
17 owner or operator of the eligible renewable electrical
18 generating facility or community renewable generation project
19 shall be responsible for determining the amount of the credit
20 that each customer or subscriber participating in a project
21 under this subsection (l) is to receive in the following
22 manner:
23 (A) The owner or operator shall, on a monthly basis,
24 provide to the electric utility the kilowatthours of
25 generation attributable to each of the utility's retail
26 customers and subscribers participating in projects under
HB1700 Enrolled - 722 - LRB104 08228 SPS 18278 b
1 this subsection (l) in accordance with the customer's or
2 subscriber's share of the eligible renewable electric
3 generating facility's or community renewable generation
4 project's output of power and energy for such month. The
5 owner or operator shall electronically transmit such
6 calculations and associated documentation to the electric
7 utility, in a format or method set forth in the applicable
8 tariff, on a monthly basis so that the electric utility
9 can reflect the monetary credits on customers' and
10 subscribers' electric utility bills. The electric utility
11 shall be permitted to revise its tariffs to implement the
12 provisions of this amendatory Act of the 102nd General
13 Assembly. The owner or operator shall separately provide
14 the electric utility with the documentation detailing the
15 calculations supporting the credit in the manner set forth
16 in the applicable tariff.
17 (B) For those participating customers and subscribers
18 who receive their energy supply from an alternative retail
19 electric supplier, the electric utility shall remit to the
20 applicable alternative retail electric supplier the
21 information provided under subparagraph (A) of this
22 paragraph (3) for such customers and subscribers in a
23 manner set forth in such alternative retail electric
24 supplier's net metering program, or as otherwise agreed
25 between the utility and the alternative retail electric
26 supplier. The alternative retail electric supplier shall
HB1700 Enrolled - 723 - LRB104 08228 SPS 18278 b
1 then submit to the utility the amount of the charges for
2 power and energy to be applied to such customers and
3 subscribers, including the amount of the credit associated
4 with net metering.
5 (C) A participating customer or subscriber may provide
6 authorization as required by applicable law that directs
7 the electric utility to submit information to the owner or
8 operator of the eligible renewable electrical generating
9 facility or community renewable generation project to
10 which the customer or subscriber has an ownership or
11 leasehold interest or a subscription. Such information
12 shall be limited to the components of the net metering
13 credit calculated under this subsection (l), including the
14 bill credit rate, total kilowatthours, and total monetary
15 credit value applied to the customer's or subscriber's
16 bill for the monthly billing period.
17 (l-5) Within 90 days after the effective date of this
18 amendatory Act of the 102nd General Assembly, each electric
19 utility subject to this Section shall file a tariff or tariffs
20 to implement the provisions of subsection (l) of this Section,
21 which shall, consistent with the provisions of subsection (l),
22 describe the terms and conditions under which owners or
23 operators of qualifying properties, units, or apartments may
24 participate in net metering. The Commission shall approve, or
25 approve with modification, the tariff within 120 days after
26 the effective date of this amendatory Act of the 102nd General
HB1700 Enrolled - 724 - LRB104 08228 SPS 18278 b
1 Assembly.
2 (m) Nothing in this Section shall affect the right of an
3 electricity provider to continue to provide, or the right of a
4 retail customer to continue to receive service pursuant to a
5 contract for electric service between the electricity provider
6 and the retail customer in accordance with the prices, terms,
7 and conditions provided for in that contract. Either the
8 electricity provider or the customer may require compliance
9 with the prices, terms, and conditions of the contract.
10 (n) On and after January 1, 2025, the net metering
11 services described in subsections (d), (d-5), and (e) of this
12 Section shall no longer be offered, except as to those
13 eligible renewable electrical generating facilities for which
14 retail customers are receiving net metering service under
15 these subsections at the time the net metering services under
16 those subsections are no longer offered; those systems shall
17 continue to receive net metering services described in
18 subsections (d), (d-5), and (e) of this Section for the
19 lifetime of the system, regardless of if those retail
20 customers change electricity providers or whether the retail
21 customer benefiting from the system changes. The electric
22 utility serving more than 200,000 customers as of January 1,
23 2021 is responsible for ensuring the billing credits continue
24 without lapse for the lifetime of systems, as required in
25 subsection (o). Those retail customers that begin taking net
26 metering service after the date that net metering services are
HB1700 Enrolled - 725 - LRB104 08228 SPS 18278 b
1 no longer offered under such subsections shall be subject to
2 the provisions set forth in the following paragraphs (1)
3 through (3) of this subsection (n):
4 (1) An electricity provider shall charge or credit for
5 the net electricity supplied to eligible customers or
6 provided by eligible customers whose electric supply
7 service is not provided based on hourly pricing in the
8 following manner:
9 (A) If the amount of electricity used by the
10 customer during the monthly billing period exceeds the
11 amount of electricity produced by the customer, then
12 the electricity provider shall charge the customer for
13 the net kilowatt-hour based electricity charges
14 reflected in the customer's electric service rate
15 supplied to and used by the customer as provided in
16 paragraph (3) of this subsection (n).
17 (B) If the amount of electricity produced by a
18 customer during the monthly billing period exceeds the
19 amount of electricity used by the customer during that
20 billing period, then the electricity provider
21 supplying that customer shall apply a 1:1
22 kilowatt-hour energy or monetary credit kilowatt-hour
23 supply charges to the customer's subsequent bill. The
24 customer shall choose between 1:1 kilowatt-hour or
25 monetary credit at the time of application. For the
26 purposes of this subsection, "kilowatt-hour supply
HB1700 Enrolled - 726 - LRB104 08228 SPS 18278 b
1 charges" means the kilowatt-hour equivalent values for
2 energy, capacity, transmission, and the purchased
3 energy adjustment, if applicable. Notwithstanding
4 anything to the contrary, customers on payment plans
5 or participating in budget billing programs shall have
6 credits applied on a monthly basis. The electricity
7 provider shall continue to carry over any excess
8 kilowatt-hour or monetary energy credits earned and
9 apply those credits to subsequent billing periods. For
10 customers with transmission or capacity charges not
11 charged on a kilowatt-hour basis, the electricity
12 provider shall prepare a reasonable approximation of
13 the kilowatt-hour equivalent value and provide that
14 value as a monetary credit. The electricity provider
15 shall submit these approximation methodologies to the
16 Commission for review, modification, and approval.
17 (C) (Blank).
18 (2) An electricity provider shall charge or credit for
19 the net electricity supplied to eligible customers or
20 provided by eligible customers whose electric supply
21 service is provided based on hourly pricing in the
22 following manner:
23 (A) If the amount of electricity used by the
24 customer during any hourly period exceeds the amount
25 of electricity produced by the customer, then the
26 electricity provider shall charge the customer for the
HB1700 Enrolled - 727 - LRB104 08228 SPS 18278 b
1 net electricity supplied to and used by the customer
2 as provided in paragraph (3) of this subsection (n).
3 (B) If the amount of electricity produced by a
4 customer during any hourly period exceeds the amount
5 of electricity used by the customer during that hourly
6 period, the energy provider shall calculate an energy
7 credit for the net kilowatt-hours produced in such
8 period, and shall apply that credit as a monetary
9 credit to the customer's subsequent bill. The value of
10 the energy credit shall be calculated using the same
11 price per kilowatt-hour as the electric service
12 provider would charge for kilowatt-hour energy sales
13 during that same hourly period and shall also include
14 values for capacity and transmission. For customers
15 with transmission or capacity charges not charged on a
16 kilowatt-hour basis, the electricity provider shall
17 prepare a reasonable approximation of the
18 kilowatt-hour equivalent value and provide that value
19 as a monetary credit. The electricity provider shall
20 submit these approximation methodologies to the
21 Commission for review, modification, and approval.
22 Notwithstanding anything to the contrary, customers on
23 payment plans or participating in budget billing
24 programs shall have credits applied on a monthly
25 basis.
26 (3) An electricity provider shall provide electric
HB1700 Enrolled - 728 - LRB104 08228 SPS 18278 b
1 service to eligible customers who utilize net metering at
2 non-discriminatory rates that are identical, with respect
3 to rate structure, retail rate components, and any monthly
4 charges, to the rates that the customer would be charged
5 if not a net metering customer. An electricity provider
6 shall charge the customer for the net electricity supplied
7 to and used by the customer according to the terms of the
8 contract or tariff to which the same customer would be
9 assigned or be eligible for if the customer was not a net
10 metering customer. An electricity provider shall not
11 charge net metering customers any fee or charge or require
12 additional equipment, insurance, or any other requirements
13 not specifically authorized by interconnection standards
14 authorized by the Commission, unless the fee, charge, or
15 other requirement would apply to other similarly situated
16 customers who are not net metering customers. The customer
17 remains responsible for the gross amount of delivery
18 services charges, supply-related charges that are kilowatt
19 based, and all taxes and fees related to such charges. The
20 customer also remains responsible for all taxes and fees
21 that would otherwise be applicable to the net amount of
22 electricity used by the customer. Paragraphs (1) and (2)
23 of this subsection (n) shall not be construed to prevent
24 an arms-length agreement between an electricity provider
25 and an eligible customer that sets forth different prices,
26 terms, and conditions for the provision of net metering
HB1700 Enrolled - 729 - LRB104 08228 SPS 18278 b
1 service, including, but not limited to, the provision of
2 the appropriate metering equipment for non-residential
3 customers. Nothing in this paragraph (3) shall be
4 interpreted to mandate that a utility that is only
5 required to provide delivery services to a given customer
6 must also sell electricity to such customer.
7 (o) Within 90 days after the effective date of this
8 amendatory Act of the 102nd General Assembly, each electric
9 utility subject to this Section shall file a tariff, which
10 shall, consistent with the provisions of this Section, propose
11 the terms and conditions under which a customer may
12 participate in net metering. The tariff for electric utilities
13 serving more than 200,000 customers as of January 1, 2021
14 shall also provide a streamlined and transparent bill
15 crediting system for net metering to be managed by the
16 electric utilities. The terms and conditions shall include,
17 but are not limited to, that an electric utility shall manage
18 and maintain billing of net metering credits and charges
19 regardless of if the eligible customer takes net metering
20 under an electric utility or alternative retail electric
21 supplier. The electric utility serving more than 200,000
22 customers as of January 1, 2021 shall process and approve all
23 net metering applications, even if an eligible customer is
24 served by an alternative retail electric supplier; and the
25 utility shall forward application approval to the appropriate
26 alternative retail electric supplier. Eligibility for net
HB1700 Enrolled - 730 - LRB104 08228 SPS 18278 b
1 metering shall remain with the owner of the utility billing
2 address such that, if an eligible renewable electrical
3 generating facility changes ownership, the net metering
4 eligibility transfers to the new owner. The electric utility
5 serving more than 200,000 customers as of January 1, 2021
6 shall manage net metering billing for eligible customers to
7 ensure full crediting occurs on electricity bills, including,
8 but not limited to, ensuring net metering crediting begins
9 upon commercial operation date, net metering billing transfers
10 immediately if an eligible customer switches from an electric
11 utility to alternative retail electric supplier or vice versa,
12 and net metering billing transfers between ownership of a
13 valid billing address. All transfers referenced in the
14 preceding sentence shall include transfer of all banked
15 credits. All electric utilities serving 200,000 or fewer
16 customers as of January 1, 2021 shall manage net metering
17 billing for eligible customers receiving power and energy
18 service from the electric utility to ensure full crediting
19 occurs on electricity bills, ensuring net metering crediting
20 begins upon commercial operation date, net metering billing
21 transfers immediately if an eligible customer switches from an
22 electric utility to alternative retail electric supplier or
23 vice versa, and net metering billing transfers between
24 ownership of a valid billing address. Alternative retail
25 electric suppliers providing power and energy service to
26 eligible customers located within the service territory of an
HB1700 Enrolled - 731 - LRB104 08228 SPS 18278 b
1 electric utility serving 200,000 or fewer customers as of
2 January 1, 2021 shall manage net metering billing for eligible
3 customers to ensure full crediting occurs on electricity
4 bills, including, but not limited to, ensuring net metering
5 crediting begins upon commercial operation date, net metering
6 billing transfers immediately if an eligible customer switches
7 from an electric utility to alternative retail electric
8 supplier or vice versa, and net metering billing transfers
9 between ownership of a valid billing address.
10 (Source: P.A. 102-662, eff. 9-15-21.)
11 (Text of Section after amendment by P.A. 104-458)
12 Sec. 16-107.5. Net electricity metering.
13 (a) The General Assembly finds and declares that a program
14 to provide net electricity metering, as defined in this
15 Section, for eligible customers can encourage private
16 investment in renewable energy resources, stimulate economic
17 growth, enhance the continued diversification of Illinois'
18 energy resource mix, and protect the Illinois environment.
19 Further, to achieve the goals of this Act that robust options
20 for customer-site distributed generation and storage continue
21 to thrive in Illinois, the General Assembly finds that a
22 predictable transition must be ensured for customers between
23 full net metering at the retail electricity rate to the
24 distribution generation rebate described in Section 16-107.6.
25 (b) As used in this Section:
HB1700 Enrolled - 732 - LRB104 08228 SPS 18278 b
1 (i) "Community renewable generation project" shall
2 have the meaning set forth in Section 1-10 of the Illinois
3 Power Agency Act.
4 (ii) "Eligible customer" means a retail customer that
5 owns, hosts, or operates, including any third-party owned
6 systems, a solar, wind, or other eligible renewable
7 electrical generating facility or an eligible storage
8 device that is located on the customer's premises or
9 customer's side of the billing meter and is intended
10 primarily to offset the customer's own current or future
11 electrical requirements.
12 (iii) "Electricity provider" means an electric utility
13 or alternative retail electric supplier.
14 (iv) "Eligible renewable electrical generating
15 facility" means a generator, which may include the
16 colocation of an energy storage system, that is
17 interconnected under rules adopted by the Commission and
18 is powered by solar electric energy, wind, dedicated crops
19 grown for electricity generation, agricultural residues,
20 untreated and unadulterated wood waste, livestock manure,
21 anaerobic digestion of livestock or food processing waste,
22 fuel cells or microturbines powered by renewable fuels, or
23 hydroelectric energy.
24 (v) "Net electricity metering" (or "net metering")
25 means the measurement, during the billing period
26 applicable to an eligible customer, of the net amount of
HB1700 Enrolled - 733 - LRB104 08228 SPS 18278 b
1 electricity supplied by an electricity provider to the
2 customer or provided to the electricity provider by the
3 customer or subscriber.
4 (vi) "Subscriber" shall have the meaning as set forth
5 in Section 1-10 of the Illinois Power Agency Act.
6 (vii) "Subscription" shall have the meaning set forth
7 in Section 1-10 of the Illinois Power Agency Act.
8 (viii) "Energy storage system" means commercially
9 available technology that is capable of absorbing energy
10 and storing it for a period of time for use at a later
11 time, including, but not limited to, electrochemical,
12 thermal, and electromechanical technologies, and may be
13 interconnected behind the customer's meter or
14 interconnected behind its own meter.
15 (ix) "Future electrical requirements" means modeled
16 electrical requirements upon occupation of a new or vacant
17 property, and other reasonable expectations of future
18 electrical use, as well as, for occupied properties, a
19 reasonable approximation of the annual load of 2 electric
20 vehicles and, for non-electric heating customers, a
21 reasonable approximation of the incremental electric load
22 associated with fuel switching. The approximations shall
23 be applied to the appropriate net metering tariff and do
24 not need to be unique to each individual eligible
25 customer. The utility shall submit these approximations to
26 the Commission for review, modification, and approval.
HB1700 Enrolled - 734 - LRB104 08228 SPS 18278 b
1 (x) "Vehicle storage system" means a vehicle that when
2 connected to an electric utility's distribution system is
3 capable of being an energy storage system, as defined in
4 Section 16-107.6.
5 (c) A net metering facility shall be equipped with
6 metering equipment that can measure the flow of electricity in
7 both directions at the same rate.
8 (1) For eligible customers whose electric service has
9 not been declared competitive pursuant to Section 16-113
10 of this Act as of July 1, 2011 and whose electric delivery
11 service is provided and measured on a kilowatt-hour basis
12 and electric supply service is not provided based on
13 hourly pricing, this shall typically be accomplished
14 through use of a single, bi-directional meter. If the
15 eligible customer's existing electric revenue meter does
16 not meet this requirement, the electricity provider shall
17 arrange for the local electric utility or a meter service
18 provider to install and maintain a new revenue meter at
19 the electricity provider's expense, which may be the smart
20 meter described by subsection (b) of Section 16-108.5 of
21 this Act.
22 (2) For eligible customers whose electric service has
23 not been declared competitive pursuant to Section 16-113
24 of this Act as of July 1, 2011 and whose electric delivery
25 service is provided and measured on a kilowatt demand
26 basis and electric supply service is not provided based on
HB1700 Enrolled - 735 - LRB104 08228 SPS 18278 b
1 hourly pricing, this shall typically be accomplished
2 through use of a dual channel meter capable of measuring
3 the flow of electricity both into and out of the
4 customer's facility at the same rate and ratio. If such
5 customer's existing electric revenue meter does not meet
6 this requirement, then the electricity provider shall
7 arrange for the local electric utility or a meter service
8 provider to install and maintain a new revenue meter at
9 the electricity provider's expense, which may be the smart
10 meter described by subsection (b) of Section 16-108.5 of
11 this Act.
12 (3) For all other eligible customers, until such time
13 as the local electric utility installs a smart meter, as
14 described by subsection (b) of Section 16-108.5 of this
15 Act, the electricity provider may arrange for the local
16 electric utility or a meter service provider to install
17 and maintain metering equipment capable of measuring the
18 flow of electricity both into and out of the customer's
19 facility at the same rate and ratio, typically through the
20 use of a dual channel meter. If the eligible customer's
21 existing electric revenue meter does not meet this
22 requirement, then the costs of installing such equipment
23 shall be paid for by the customer.
24 (d) An electricity provider shall measure and charge or
25 credit for the net electricity supplied to eligible customers
26 or provided by eligible customers whose electric service has
HB1700 Enrolled - 736 - LRB104 08228 SPS 18278 b
1 not been declared competitive pursuant to Section 16-113 of
2 this Act as of July 1, 2011 and whose electric delivery service
3 is provided and measured on a kilowatt-hour basis and electric
4 supply service is not provided based on hourly pricing in the
5 following manner:
6 (1) If the amount of electricity used by the customer
7 during the billing period exceeds the amount of
8 electricity produced by the customer, the electricity
9 provider shall charge the customer for the net electricity
10 supplied to and used by the customer as provided in
11 subsection (e-5) of this Section.
12 (2) If the amount of electricity produced by a
13 customer during the billing period exceeds the amount of
14 electricity used by the customer during that billing
15 period, the electricity provider supplying that customer
16 shall apply a 1:1 kilowatt-hour credit to a subsequent
17 bill for service to the customer for the net electricity
18 supplied to the electricity provider. The electricity
19 provider shall continue to carry over any excess
20 kilowatt-hour credits earned and apply those credits to
21 subsequent billing periods to offset any
22 customer-generator consumption in those billing periods
23 until all credits are used or until the end of the
24 annualized period.
25 (3) At the end of the year or annualized over the
26 period that service is supplied by means of net metering,
HB1700 Enrolled - 737 - LRB104 08228 SPS 18278 b
1 or in the event that the retail customer terminates
2 service with the electricity provider prior to the end of
3 the year or the annualized period, any remaining credits
4 in the customer's account shall expire.
5 (d-5) An electricity provider shall measure and charge or
6 credit for the net electricity supplied to eligible customers
7 or provided by eligible customers whose electric service has
8 not been declared competitive pursuant to Section 16-113 of
9 this Act as of July 1, 2011 and whose electric delivery service
10 is provided and measured on a kilowatt-hour basis and electric
11 supply service is provided based on hourly pricing or
12 time-of-use rates in the following manner:
13 (1) If the amount of electricity used by the customer
14 during any hourly period or time-of-use period exceeds the
15 amount of electricity produced by the customer, the
16 electricity provider shall charge the customer for the net
17 electricity supplied to and used by the customer according
18 to the terms of the contract or tariff to which the same
19 customer would be assigned to or be eligible for if the
20 customer was not a net metering customer.
21 (2) If the amount of electricity produced by a
22 customer during any hourly period or time-of-use period
23 exceeds the amount of electricity used by the customer
24 during that hourly period or time-of-use period, the
25 energy provider shall apply a credit for the net
26 kilowatt-hours produced in such period. The credit shall
HB1700 Enrolled - 738 - LRB104 08228 SPS 18278 b
1 consist of an energy credit and a delivery service credit.
2 The energy credit shall be valued at the same price per
3 kilowatt-hour as the electric service provider would
4 charge for kilowatt-hour energy sales during that same
5 hourly period or time-of-use period. The delivery credit
6 shall be equal to the net kilowatt-hours produced in such
7 hourly period or time-of-use period times a credit that
8 reflects all kilowatt-hour based charges in the customer's
9 electric service rate, excluding energy charges.
10 (e) An electricity provider shall measure and charge or
11 credit for the net electricity supplied to eligible customers
12 whose electric service has not been declared competitive
13 pursuant to Section 16-113 of this Act as of July 1, 2011 and
14 whose electric delivery service is provided and measured on a
15 kilowatt demand basis and electric supply service is not
16 provided based on hourly pricing in the following manner:
17 (1) If the amount of electricity used by the customer
18 during the billing period exceeds the amount of
19 electricity produced by the customer, then the electricity
20 provider shall charge the customer for the net electricity
21 supplied to and used by the customer as provided in
22 subsection (e-5) of this Section. The customer shall
23 remain responsible for all taxes, fees, and utility
24 delivery charges that would otherwise be applicable to the
25 net amount of electricity used by the customer.
26 (2) If the amount of electricity produced by a
HB1700 Enrolled - 739 - LRB104 08228 SPS 18278 b
1 customer during the billing period exceeds the amount of
2 electricity used by the customer during that billing
3 period, then the electricity provider supplying that
4 customer shall apply a 1:1 kilowatt-hour credit that
5 reflects the kilowatt-hour based charges in the customer's
6 electric service rate to a subsequent bill for service to
7 the customer for the net electricity supplied to the
8 electricity provider. The electricity provider shall
9 continue to carry over any excess kilowatt-hour credits
10 earned and apply those credits to subsequent billing
11 periods to offset any customer-generator consumption in
12 those billing periods until all credits are used or until
13 the end of the annualized period.
14 (3) At the end of the year or annualized over the
15 period that service is supplied by means of net metering,
16 or in the event that the retail customer terminates
17 service with the electricity provider prior to the end of
18 the year or the annualized period, any remaining credits
19 in the customer's account shall expire.
20 (e-5) An electricity provider shall provide electric
21 service to eligible customers who utilize net metering at
22 non-discriminatory rates that are identical, with respect to
23 rate structure, retail rate components, and any monthly
24 charges, to the rates that the customer would be charged if not
25 a net metering customer. An electricity provider shall not
26 charge net metering customers any fee or charge or require
HB1700 Enrolled - 740 - LRB104 08228 SPS 18278 b
1 additional equipment, insurance, or any other requirements not
2 specifically authorized by interconnection standards
3 authorized by the Commission, unless the fee, charge, or other
4 requirement would apply to other similarly situated customers
5 who are not net metering customers. The customer will remain
6 responsible for all taxes, fees, and utility delivery charges
7 that would otherwise be applicable to the net amount of
8 electricity used by the customer. Subsections (c) through (e)
9 of this Section shall not be construed to prevent an
10 arms-length agreement between an electricity provider and an
11 eligible customer that sets forth different prices, terms, and
12 conditions for the provision of net metering service,
13 including, but not limited to, the provision of the
14 appropriate metering equipment for non-residential customers.
15 (f) Notwithstanding the requirements of subsections (c)
16 through (e-5) of this Section, an electricity provider must
17 require dual-channel metering for customers operating eligible
18 renewable electrical generating facilities to whom the
19 provisions of neither subsection (d), (d-5), nor (e) of this
20 Section apply. In such cases, electricity charges and credits
21 shall be determined as follows:
22 (1) The electricity provider shall assess and the
23 customer remains responsible for all taxes, fees, and
24 utility delivery charges that would otherwise be
25 applicable to the gross amount of kilowatt-hours supplied
26 to the eligible customer by the electricity provider.
HB1700 Enrolled - 741 - LRB104 08228 SPS 18278 b
1 (2) Each month that service is supplied by means of
2 dual-channel metering, the electricity provider shall
3 compensate the eligible customer for any excess
4 kilowatt-hour credits at the electricity provider's
5 avoided cost of electricity supply over the monthly period
6 or as otherwise specified by the terms of a power-purchase
7 agreement negotiated between the customer and electricity
8 provider.
9 (3) For all eligible net metering customers taking
10 service from an electricity provider under contracts or
11 tariffs employing hourly or time-of-use rates, any monthly
12 consumption of electricity shall be calculated according
13 to the terms of the contract or tariff to which the same
14 customer would be assigned to or be eligible for if the
15 customer was not a net metering customer. When those same
16 customer-generators are net generators during any discrete
17 hourly or time-of-use period, the net kilowatt-hours
18 produced shall be valued at the same price per
19 kilowatt-hour as the electric service provider would
20 charge for retail kilowatt-hour sales during that same
21 time-of-use period.
22 (g) For purposes of federal and State laws providing
23 renewable energy credits or greenhouse gas credits, the
24 eligible customer shall be treated as owning and having title
25 to the renewable energy attributes, renewable energy credits,
26 and greenhouse gas emission credits related to any electricity
HB1700 Enrolled - 742 - LRB104 08228 SPS 18278 b
1 produced by the qualified generating unit. The electricity
2 provider may not condition participation in a net metering
3 program on the signing over of a customer's renewable energy
4 credits; provided, however, this subsection (g) shall not be
5 construed to prevent an arms-length agreement between an
6 electricity provider and an eligible customer that sets forth
7 the ownership or title of the credits.
8 (h) Within 120 days after the effective date of this
9 amendatory Act of the 95th General Assembly, the Commission
10 shall establish standards for net metering and, if the
11 Commission has not already acted on its own initiative,
12 standards for the interconnection of eligible renewable
13 generating equipment to the utility system. The
14 interconnection standards shall address any procedural
15 barriers, delays, and administrative costs associated with the
16 interconnection of customer-generation while ensuring the
17 safety and reliability of the units and the electric utility
18 system. The Commission shall consider the Institute of
19 Electrical and Electronics Engineers (IEEE) Standard 1547 and
20 the issues of (i) reasonable and fair fees and costs, (ii)
21 clear timelines for major milestones in the interconnection
22 process, (iii) nondiscriminatory terms of agreement, and (iv)
23 any best practices for interconnection of distributed
24 generation.
25 (i) All electricity providers shall begin to offer net
26 metering no later than April 1, 2008.
HB1700 Enrolled - 743 - LRB104 08228 SPS 18278 b
1 (j) An electricity provider shall provide net metering to
2 eligible customers according to subsections (d), (d-5), and
3 (e). Eligible renewable electrical generating facilities for
4 which eligible customers registered for net metering before
5 January 1, 2025 shall continue to receive net metering
6 services according to subsections (d), (d-5), and (e) of this
7 Section for the lifetime of the system, regardless of whether
8 those retail customers change electricity providers or whether
9 the retail customer benefiting from the system changes. On and
10 after January 1, 2025, any eligible customer that applies for
11 net metering and previously would have qualified under
12 subsections (d), (d-5), or (e) shall only be eligible for net
13 metering as described in subsection (n).
14 (k) Each electricity provider shall maintain records and
15 report annually to the Commission the total number of net
16 metering customers served by the provider, as well as the
17 type, capacity, and energy sources of the generating systems
18 used by the net metering customers. Nothing in this Section
19 shall limit the ability of an electricity provider to request
20 the redaction of information deemed by the Commission to be
21 confidential business information.
22 (l)(1) Notwithstanding the definition of "eligible
23 customer" in item (ii) of subsection (b) of this Section, each
24 electricity provider shall allow net metering as set forth in
25 this subsection (l) and for the following projects, provided
26 that only electric utilities serving more than 200,000
HB1700 Enrolled - 744 - LRB104 08228 SPS 18278 b
1 customers as of January 1, 2021 shall provide net metering for
2 projects that are eligible for subparagraph (C) of this
3 paragraph (1) and have energized after the effective date of
4 this amendatory Act of the 102nd General Assembly:
5 (A) properties owned or leased by multiple customers
6 that contribute to the operation of an eligible renewable
7 electrical generating facility through an ownership or
8 leasehold interest of at least 200 watts in such facility,
9 such as a community-owned wind project, a community-owned
10 biomass project, a community-owned solar project, or a
11 community methane digester processing livestock waste from
12 multiple sources, provided that the facility is also
13 located within the utility's service territory;
14 (B) individual units, apartments, or properties
15 located in a single building that are owned or leased by
16 multiple customers and collectively served by a common
17 eligible renewable electrical generating facility, such as
18 an office or apartment building, a shopping center or
19 strip mall served by photovoltaic panels on the roof; and
20 (C) subscriptions to community renewable generation
21 projects, including community renewable generation
22 projects on the customer's side of the billing meter of a
23 host facility and partially used for the customer's own
24 load.
25 In addition, the nameplate capacity of the eligible
26 renewable electric generating facility that serves the demand
HB1700 Enrolled - 745 - LRB104 08228 SPS 18278 b
1 of the properties, units, or apartments identified in
2 paragraphs (1) and (2) of this subsection (l) shall not exceed
3 5,000 kilowatts in nameplate capacity in total. Any eligible
4 renewable electrical generating facility or community
5 renewable generation project that is powered by photovoltaic
6 electric energy and installed after the effective date of this
7 amendatory Act of the 99th General Assembly must be installed
8 by a qualified person in compliance with the requirements of
9 Section 16-128A of the Public Utilities Act and any rules or
10 regulations adopted thereunder.
11 (2) Notwithstanding anything to the contrary, an
12 electricity provider shall provide credits for the electricity
13 produced by the projects described in paragraph (1) of this
14 subsection (l). The electricity provider shall provide credits
15 that include at least energy supply, capacity, transmission,
16 and, if applicable, the purchased energy adjustment on the
17 subscriber's monthly bill equal to the subscriber's share of
18 the production of electricity from the project, as determined
19 by paragraph (3) of this subsection (l). For customers with
20 transmission or capacity charges not charged on a
21 kilowatt-hour basis, the electricity provider shall prepare a
22 reasonable approximation of the kilowatt-hour equivalent value
23 and provide that value as a monetary credit. The electricity
24 provider shall submit these approximation methodologies to the
25 Commission for review, modification, and approval.
26 Notwithstanding anything to the contrary, customers on payment
HB1700 Enrolled - 746 - LRB104 08228 SPS 18278 b
1 plans or participating in budget billing programs shall have
2 credits applied on a monthly basis.
3 (3) Notwithstanding anything to the contrary and
4 regardless of whether a subscriber to an eligible community
5 renewable generation project receives power and energy service
6 from the electric utility or an alternative retail electric
7 supplier, for projects eligible under paragraph (C) of
8 subparagraph (1) of this subsection (l), electric utilities
9 serving more than 200,000 customers as of January 1, 2021
10 shall provide the monetary credits to a subscriber's
11 subsequent bill for the electricity produced by community
12 renewable generation projects. The electric utility shall
13 provide monetary credits to a subscriber's subsequent bill at
14 the utility's total price to compare equal to the subscriber's
15 share of the production of electricity from the project, as
16 determined by paragraph (5) of this subsection (l). For the
17 purposes of this subsection, "total price to compare" means
18 the rate or rates published by the Illinois Commerce
19 Commission for energy supply for eligible customers receiving
20 supply service from the electric utility, and shall include
21 energy, capacity, transmission, and the purchased energy
22 adjustment. Notwithstanding anything to the contrary,
23 customers on payment plans or participating in budget billing
24 programs shall have credits applied on a monthly basis. Any
25 applicable credit or reduction in load obligation from the
26 production of the community renewable generating projects
HB1700 Enrolled - 747 - LRB104 08228 SPS 18278 b
1 receiving a credit under this subsection shall be credited to
2 the electric utility to offset the cost of providing the
3 credit. To the extent that the credit or load obligation
4 reduction does not completely offset the cost of providing the
5 credit to subscribers of community renewable generation
6 projects as described in this subsection, the electric utility
7 may recover the remaining costs through its Multi-Year Rate
8 Plan. All electric utilities serving 200,000 or fewer
9 customers as of January 1, 2021 shall only provide the
10 monetary credits to a subscriber's subsequent bill for the
11 electricity produced by community renewable generation
12 projects if the subscriber receives power and energy service
13 from the electric utility. Alternative retail electric
14 suppliers providing power and energy service to a subscriber
15 located within the service territory of an electric utility
16 not subject to Sections 16-108.18 and 16-118 shall provide the
17 monetary credits to the subscriber's subsequent bill for the
18 electricity produced by community renewable generation
19 projects.
20 (4) If requested by the owner or operator of a community
21 renewable generating project, an electric utility serving more
22 than 200,000 customers as of January 1, 2021 shall enter into a
23 net crediting agreement with the owner or operator to include
24 a subscriber's subscription fee on the subscriber's monthly
25 electric bill and provide the subscriber with a net credit
26 equivalent to the total bill credit value for that generation
HB1700 Enrolled - 748 - LRB104 08228 SPS 18278 b
1 period minus the subscription fee, provided the subscription
2 fee is structured as a fixed percentage of bill credit value.
3 The net crediting agreement shall set forth payment terms from
4 the electric utility to the owner or operator of the community
5 renewable generating project, and the electric utility may
6 charge a net crediting fee to the owner or operator of a
7 community renewable generating project that may not exceed 1%
8 of the subscription fee. Notwithstanding anything to the
9 contrary, an electric utility serving 200,000 customers or
10 fewer as of January 1, 2021 shall not be obligated to enter
11 into a net crediting agreement with the owner or operator of a
12 community renewable generating project. An electric utility
13 shall use the same net crediting format for subscribers on
14 payment plans and subscribers participating in budget billing
15 programs. For the purposes of this paragraph (4), "net
16 crediting" means a program offered by an electric utility
17 under which the electric utility, upon authorization by or on
18 behalf of a subscriber, remits the cash value of the
19 subscription fee to the owner or operator of the community
20 renewable generation facility without regard to whether the
21 subscriber has paid the subscriber's monthly electric bill and
22 places the cash value of the remaining bill credit on the
23 subscriber's bill.
24 (5) For the purposes of facilitating net metering, the
25 owner or operator of the eligible renewable electrical
26 generating facility or community renewable generation project
HB1700 Enrolled - 749 - LRB104 08228 SPS 18278 b
1 shall be responsible for determining the amount of the credit
2 that each customer or subscriber participating in a project
3 under this subsection (l) is to receive in the following
4 manner:
5 (A) The owner or operator shall, on a monthly basis,
6 provide to the electric utility the kilowatthours of
7 generation attributable to each of the utility's retail
8 customers and subscribers participating in projects under
9 this subsection (l) in accordance with the customer's or
10 subscriber's share of the eligible renewable electric
11 generating facility's or community renewable generation
12 project's output of power and energy for such month. The
13 owner or operator shall electronically transmit such
14 calculations and associated documentation to the electric
15 utility, in a format or method set forth in the applicable
16 tariff, on a monthly basis so that the electric utility
17 can reflect the monetary credits on customers' and
18 subscribers' electric utility bills. The electric utility
19 shall be permitted to revise its tariffs to implement the
20 provisions of this amendatory Act of the 102nd General
21 Assembly. The owner or operator shall separately provide
22 the electric utility with the documentation detailing the
23 calculations supporting the credit in the manner set forth
24 in the applicable tariff.
25 (B) For those participating customers and subscribers
26 who receive their energy supply from an alternative retail
HB1700 Enrolled - 750 - LRB104 08228 SPS 18278 b
1 electric supplier, the electric utility shall remit to the
2 applicable alternative retail electric supplier the
3 information provided under subparagraph (A) of this
4 paragraph (3) for such customers and subscribers in a
5 manner set forth in such alternative retail electric
6 supplier's net metering program, or as otherwise agreed
7 between the utility and the alternative retail electric
8 supplier. The alternative retail electric supplier shall
9 then submit to the utility the amount of the charges for
10 power and energy to be applied to such customers and
11 subscribers, including the amount of the credit associated
12 with net metering.
13 (C) A participating customer or subscriber may provide
14 authorization as required by applicable law that directs
15 the electric utility to submit information to the owner or
16 operator of the eligible renewable electrical generating
17 facility or community renewable generation project to
18 which the customer or subscriber has an ownership or
19 leasehold interest or a subscription. Such information
20 shall be limited to the components of the net metering
21 credit calculated under this subsection (l), including the
22 bill credit rate, total kilowatthours, and total monetary
23 credit value applied to the customer's or subscriber's
24 bill for the monthly billing period.
25 (l-5) Within 90 days after the effective date of this
26 amendatory Act of the 102nd General Assembly, each electric
HB1700 Enrolled - 751 - LRB104 08228 SPS 18278 b
1 utility subject to this Section shall file a tariff or tariffs
2 to implement the provisions of subsection (l) of this Section,
3 which shall, consistent with the provisions of subsection (l),
4 describe the terms and conditions under which owners or
5 operators of qualifying properties, units, or apartments may
6 participate in net metering. The Commission shall approve, or
7 approve with modification, the tariff within 120 days after
8 the effective date of this amendatory Act of the 102nd General
9 Assembly.
10 (l-10) Within 30 days after the effective date of this
11 amendatory Act of the 104th General Assembly, each electricity
12 provider shall modify its tariffs to allow net metering as set
13 forth in this subsection for an energy storage system or
14 vehicle storage system energized after the effective date of
15 this amendatory Act of the 104th General Assembly with a
16 nameplate capacity of not more than 5,000 kilowatts. If the
17 Commission chooses to suspend the modified tariffs, the
18 Commission shall issue a final order approving, or approving
19 with modification, the modified tariffs no later than 90 days
20 after the Commission initiates the docket.
21 An energy storage system or vehicle storage system
22 eligible for net metering under this subsection may be
23 interconnected behind the meter of a retail customer or at the
24 distribution system level of an electric utility as follows:
25 (A) if the energy storage system or vehicle storage
26 system is interconnected behind the meter of a retail
HB1700 Enrolled - 752 - LRB104 08228 SPS 18278 b
1 customer, in order to receive net metering under this
2 subsection, the eligible customer behind whose meter the
3 energy storage system is interconnected must receive
4 service from an electricity provider under an hourly
5 supply tariff, a time-of-use supply tariff, or a
6 time-of-use contract with an alternative retail electric
7 supplier; or
8 (B) if the energy storage system or vehicle storage
9 system is interconnected at the distribution system level
10 of an electric utility and not behind the meter of a retail
11 customer, the energy storage system or vehicle storage
12 system must receive service from an electricity provider
13 as a retail customer under an hourly supply tariff
14 authorized by Section 16-107, a supply tariff or contract
15 on substantially similar terms and conditions with an
16 alternative retail electric supplier, a time-of-use supply
17 tariff, or a time-of-use supply contract with an
18 alternative retail electric supplier.
19 If the energy storage system or vehicle storage system is
20 interconnected behind the meter of an eligible customer, the
21 eligible customer shall receive net metering based on hourly
22 or time-of-use rates in accordance with the terms of
23 subsection (d-5) or (f) or paragraph (2) of subsection (n) of
24 this Section, as applicable to the eligible customer. If the
25 energy storage system or vehicle storage system is
26 interconnected at the distribution system level of an electric
HB1700 Enrolled - 753 - LRB104 08228 SPS 18278 b
1 utility and not behind the meter of a retail customer, then the
2 energy storage system or vehicle storage system shall receive
3 net metering pursuant to the terms of subsection (f) of this
4 Section.
5 (m) Nothing in this Section shall affect the right of an
6 electricity provider to continue to provide, or the right of a
7 retail customer to continue to receive service pursuant to a
8 contract for electric service between the electricity provider
9 and the retail customer in accordance with the prices, terms,
10 and conditions provided for in that contract. Either the
11 electricity provider or the customer may require compliance
12 with the prices, terms, and conditions of the contract.
13 (n) On and after January 1, 2025, the net metering
14 services described in subsections (d), (d-5), and (e) of this
15 Section shall no longer be offered, except as to those
16 eligible renewable electrical generating facilities for which
17 retail customers are receiving net metering service under
18 these subsections at the time the net metering services under
19 those subsections are no longer offered; those systems shall
20 continue to receive net metering services described in
21 subsections (d), (d-5), and (e) of this Section for the
22 lifetime of the system, regardless of if those retail
23 customers change electricity providers or whether the retail
24 customer benefiting from the system changes. The electric
25 utility serving more than 200,000 customers as of January 1,
26 2021 is responsible for ensuring the billing credits continue
HB1700 Enrolled - 754 - LRB104 08228 SPS 18278 b
1 without lapse for the lifetime of systems, as required in
2 subsection (o). Those retail customers that begin taking net
3 metering service after the date that net metering services are
4 no longer offered under such subsections shall be subject to
5 the provisions set forth in the following paragraphs (1)
6 through (3) of this subsection (n):
7 (1) An electricity provider shall charge or credit for
8 the net electricity supplied to eligible customers or
9 provided by eligible customers whose electric supply
10 service is not provided based on hourly pricing in the
11 following manner:
12 (A) If the amount of electricity used by the
13 customer during the monthly billing period exceeds the
14 amount of electricity produced by the customer, then
15 the electricity provider shall charge the customer for
16 the net kilowatt-hour based electricity charges
17 reflected in the customer's electric service rate
18 supplied to and used by the customer as provided in
19 paragraph (3) of this subsection (n).
20 (B) If the amount of electricity produced by a
21 customer during the monthly billing period exceeds the
22 amount of electricity used by the customer during that
23 billing period, then the electricity provider
24 supplying that customer shall apply a 1:1
25 kilowatt-hour energy or monetary credit kilowatt-hour
26 supply charges to the customer's subsequent bill. The
HB1700 Enrolled - 755 - LRB104 08228 SPS 18278 b
1 customer shall choose between 1:1 kilowatt-hour or
2 monetary credit at the time of application. For the
3 purposes of this subsection, "kilowatt-hour supply
4 charges" means the kilowatt-hour equivalent values for
5 energy, capacity, transmission, and the purchased
6 energy adjustment, if applicable. Notwithstanding
7 anything to the contrary, customers on payment plans
8 or participating in budget billing programs shall have
9 credits applied on a monthly basis. The electricity
10 provider shall continue to carry over any excess
11 kilowatt-hour or monetary energy credits earned and
12 apply those credits to subsequent billing periods. For
13 customers with transmission or capacity charges not
14 charged on a kilowatt-hour basis, the electricity
15 provider shall prepare a reasonable approximation of
16 the kilowatt-hour equivalent value and provide that
17 value as a monetary credit. The electricity provider
18 shall submit these approximation methodologies to the
19 Commission for review, modification, and approval.
20 (C) (Blank).
21 (2) An electricity provider shall charge or credit for
22 the net electricity supplied to eligible customers or
23 provided by eligible customers whose electric supply
24 service is provided based on hourly or time-of-use pricing
25 in the following manner:
26 (A) If the amount of electricity used by the
HB1700 Enrolled - 756 - LRB104 08228 SPS 18278 b
1 customer during any hourly period exceeds the amount
2 of electricity produced by the customer, then the
3 electricity provider shall charge the customer for the
4 net electricity supplied to and used by the customer
5 as provided in paragraph (3) of this subsection (n).
6 (B) If the amount of electricity produced by a
7 customer during any hourly period exceeds the amount
8 of electricity used by the customer during that hourly
9 period, the energy provider shall calculate an energy
10 credit for the net kilowatt-hours produced in such
11 period, and shall apply that credit as a monetary
12 credit to the customer's subsequent bill. The value of
13 the energy credit shall be calculated using the same
14 price per kilowatt-hour as the electric service
15 provider would charge for kilowatt-hour energy sales
16 during that same hourly period and shall also include
17 values for capacity and transmission. For customers
18 with transmission or capacity charges not charged on a
19 kilowatt-hour basis, the electricity provider shall
20 prepare a reasonable approximation of the
21 kilowatt-hour equivalent value and provide that value
22 as a monetary credit. The electricity provider shall
23 submit these approximation methodologies to the
24 Commission for review, modification, and approval.
25 Notwithstanding anything to the contrary, customers on
26 payment plans or participating in budget billing
HB1700 Enrolled - 757 - LRB104 08228 SPS 18278 b
1 programs shall have credits applied on a monthly
2 basis.
3 (3) An electricity provider shall provide electric
4 service to eligible customers who utilize net metering at
5 non-discriminatory rates that are identical, with respect
6 to rate structure, retail rate components, and any monthly
7 charges, to the rates that the customer would be charged
8 if not a net metering customer. An electricity provider
9 shall charge the customer for the net electricity supplied
10 to and used by the customer according to the terms of the
11 contract or tariff to which the same customer would be
12 assigned or be eligible for if the customer was not a net
13 metering customer. An electricity provider shall not
14 charge net metering customers any fee or charge or require
15 additional equipment, insurance, or any other requirements
16 not specifically authorized by interconnection standards
17 authorized by the Commission, unless the fee, charge, or
18 other requirement would apply to other similarly situated
19 customers who are not net metering customers. The customer
20 remains responsible for the gross amount of delivery
21 services charges, supply-related charges that are kilowatt
22 based, and all taxes and fees related to such charges. The
23 customer also remains responsible for all taxes and fees
24 that would otherwise be applicable to the net amount of
25 electricity used by the customer. Paragraphs (1) and (2)
26 of this subsection (n) shall not be construed to prevent
HB1700 Enrolled - 758 - LRB104 08228 SPS 18278 b
1 an arms-length agreement between an electricity provider
2 and an eligible customer that sets forth different prices,
3 terms, and conditions for the provision of net metering
4 service, including, but not limited to, the provision of
5 the appropriate metering equipment for non-residential
6 customers. Nothing in this paragraph (3) shall be
7 interpreted to mandate that a utility that is only
8 required to provide delivery services to a given customer
9 must also sell electricity to such customer.
10 (o) Within 90 days after the effective date of this
11 amendatory Act of the 102nd General Assembly, each electric
12 utility subject to this Section shall file a tariff, which
13 shall, consistent with the provisions of this Section, propose
14 the terms and conditions under which a customer may
15 participate in net metering. The tariff for electric utilities
16 serving more than 200,000 customers as of January 1, 2021
17 shall also provide a streamlined and transparent bill
18 crediting system for net metering to be managed by the
19 electric utilities. The terms and conditions shall include,
20 but are not limited to, that an electric utility shall manage
21 and maintain billing of net metering credits and charges
22 regardless of if the eligible customer takes net metering
23 under an electric utility or alternative retail electric
24 supplier. The electric utility serving more than 200,000
25 customers as of January 1, 2021 shall process and approve all
26 net metering applications, even if an eligible customer is
HB1700 Enrolled - 759 - LRB104 08228 SPS 18278 b
1 served by an alternative retail electric supplier; and the
2 utility shall forward application approval to the appropriate
3 alternative retail electric supplier. Eligibility for net
4 metering shall remain with the owner of the utility billing
5 address such that, if an eligible renewable electrical
6 generating facility changes ownership, the net metering
7 eligibility transfers to the new owner. The electric utility
8 serving more than 200,000 customers as of January 1, 2021
9 shall manage net metering billing for eligible customers to
10 ensure full crediting occurs on electricity bills, including,
11 but not limited to, ensuring net metering crediting begins
12 upon commercial operation date, net metering billing transfers
13 immediately if an eligible customer switches from an electric
14 utility to alternative retail electric supplier or vice versa,
15 and net metering billing transfers between ownership of a
16 valid billing address. All transfers referenced in the
17 preceding sentence shall include transfer of all banked
18 credits. All electric utilities serving 200,000 or fewer
19 customers as of January 1, 2021 shall manage net metering
20 billing for eligible customers receiving power and energy
21 service from the electric utility to ensure full crediting
22 occurs on electricity bills, ensuring net metering crediting
23 begins upon commercial operation date, net metering billing
24 transfers immediately if an eligible customer switches from an
25 electric utility to alternative retail electric supplier or
26 vice versa, and net metering billing transfers between
HB1700 Enrolled - 760 - LRB104 08228 SPS 18278 b
1 ownership of a valid billing address. Alternative retail
2 electric suppliers providing power and energy service to
3 eligible customers located within the service territory of an
4 electric utility serving 200,000 or fewer customers as of
5 January 1, 2021 shall manage net metering billing for eligible
6 customers to ensure full crediting occurs on electricity
7 bills, including, but not limited to, ensuring net metering
8 crediting begins upon commercial operation date, net metering
9 billing transfers immediately if an eligible customer switches
10 from an electric utility to alternative retail electric
11 supplier or vice versa, and net metering billing transfers
12 between ownership of a valid billing address.
13 (Source: P.A. 104-458, eff. 6-1-26.)
14 (220 ILCS 5/16-107.6)
15 (Text of Section before amendment by P.A. 104-458)
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
HB1700 Enrolled - 761 - LRB104 08228 SPS 18278 b
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
HB1700 Enrolled - 762 - LRB104 08228 SPS 18278 b
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 one or more
25 inverters or smart inverters required by this Section, as
26 applicable.
HB1700 Enrolled - 763 - LRB104 08228 SPS 18278 b
1 For purposes of this Section, "distributed generation"
2 shall satisfy the definition of distributed renewable energy
3 generation device set forth in Section 1-10 of the Illinois
4 Power Agency Act to the extent such definition is consistent
5 with the requirements of this Section.
6 In addition, any new photovoltaic distributed generation
7 that is installed after June 1, 2017 (the effective date of
8 Public Act 99-906) must be installed by a qualified person, as
9 defined by subsection (i) of Section 1-56 of the Illinois
10 Power Agency Act.
11 The tariff shall include a base rebate that compensates
12 distributed generation for the system-wide grid services
13 associated with distributed generation and, after the
14 proceeding described in subsection (e) of this Section, an
15 additional payment or payments for the additive services. The
16 tariff shall provide that the smart inverter or smart
17 inverters associated with the distributed generation shall
18 provide autonomous response to grid conditions through its
19 default settings as approved by the Commission. Default
20 settings may not be changed after the execution of the
21 interconnection agreement except by mutual agreement between
22 the utility and the owner or operator of the distributed
23 generation. Nothing in this Section shall negate or supersede
24 Institute of Electrical and Electronics Engineers equipment
25 standards or other similar standards or requirements. The
26 tariff shall not limit the ability of the smart inverter or
HB1700 Enrolled - 764 - LRB104 08228 SPS 18278 b
1 smart inverters or other distributed energy resource to
2 provide wholesale market products such as regulation, demand
3 response, or other services, or limit the ability of the owner
4 of the smart inverter or the other distributed energy resource
5 to receive compensation for providing those wholesale market
6 products or services.
7 (b-5) Within 30 days after the effective date of this
8 amendatory Act of the 102nd General Assembly, each electric
9 public utility with 3,000,000 or more retail customers shall
10 file a tariff with the Commission that further compensates any
11 retail customer that installs or has installed photovoltaic
12 facilities paired with energy storage facilities on or
13 adjacent to its premises for the benefits the facilities
14 provide to the distribution grid. The tariff shall provide
15 that, in addition to the other rebates identified in this
16 Section, the electric utility shall rebate to such retail
17 customer (i) the previously incurred and future costs of
18 installing interconnection facilities and related
19 infrastructure to enable full participation in the PJM
20 Interconnection, LLC or its successor organization frequency
21 regulation market; and (ii) all wholesale demand charges
22 incurred after the effective date of this amendatory Act of
23 the 102nd General Assembly. The Commission shall approve, or
24 approve with modification, the tariff within 120 days after
25 the utility's filing.
26 (c) The proposed tariff authorized by subsection (b) of
HB1700 Enrolled - 765 - LRB104 08228 SPS 18278 b
1 this Section shall include the following participation terms
2 for rebates to be applied under this Section for distributed
3 generation that satisfies the criteria set forth in subsection
4 (b) of this Section:
5 (1) The owner or operator of distributed generation
6 that services customers not eligible for net metering
7 under subsection (d), (d-5), or (e) of Section 16-107.5 of
8 this Act may apply for a rebate as provided for in this
9 Section. Until the threshold date, the value of the rebate
10 shall be $250 per kilowatt of nameplate generating
11 capacity, measured as nominal DC power output, of that
12 customer's distributed generation. To the extent the
13 distributed generation also has an associated energy
14 storage, then the energy storage system shall be
15 separately compensated with a base rebate of $250 per
16 kilowatt-hour of nameplate capacity. Any distributed
17 generation device that is compensated for storage in this
18 subsection (1) before the threshold date shall participate
19 in one or more programs determined through the Multi-Year
20 Integrated Grid Planning process that are designed to meet
21 peak reduction and flexibility. After the threshold date,
22 the value of the base rebate and additional compensation
23 for any additive services shall be as determined by the
24 Commission in the proceeding described in subsection (e)
25 of this Section, provided that the value of the base
26 rebate for system-wide grid services shall not be lower
HB1700 Enrolled - 766 - LRB104 08228 SPS 18278 b
1 than $250 per kilowatt of nameplate generating capacity of
2 distributed generation or community renewable generation
3 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 associated
17 energy storage device behind the same retail customer
18 meter as the distributed generation, regardless of whether
19 the 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 a peak time rebate program, hourly pricing program, or
26 time-of-use rate program offered by the applicable
HB1700 Enrolled - 767 - LRB104 08228 SPS 18278 b
1 electric utility. After the threshold date, the value of
2 the base rebate and additional compensation for any
3 additive services shall be as determined by the Commission
4 in the proceeding described in subsection (e) of this
5 Section, provided that, prior to December 31, 2029, the
6 value of the base rebate for system-wide services shall
7 not be lower than $300 per kilowatt of nameplate
8 generating capacity of distributed generation, after which
9 it shall not be lower than $250 per kilowatt of nameplate
10 capacity. The eligibility of energy storage devices that
11 are interconnected behind the same retail customer meter
12 as the distributed generation shall not be limited to
13 energy storage devices interconnected after the effective
14 date of this amendatory Act of the 103rd General Assembly.
15 To the extent that an electric utility's tariffs are
16 inconsistent with the requirements of this paragraph (2)
17 as modified by this amendatory Act of the 103rd General
18 Assembly, such electric utility shall, within 30 days,
19 file modified tariffs consistent with the requirements of
20 this paragraph (2).
21 (3) Upon approval of a rebate application submitted
22 under this subsection (c), the retail customer shall no
23 longer be entitled to receive any delivery service credits
24 for the excess electricity generated by its facility and
25 shall be subject to the provisions of subsection (n) of
26 Section 16-107.5 of this Act unless the owner or operator
HB1700 Enrolled - 768 - LRB104 08228 SPS 18278 b
1 receives a rebate only for an energy storage device and
2 not for the distributed generation device.
3 (4) To be eligible for a rebate described in this
4 subsection (c), the owner or operator of the distributed
5 generation must have a smart inverter installed and in
6 operation on the distributed generation.
7 (d) The Commission shall review the proposed tariff
8 authorized by subsection (b) of this Section and may make
9 changes to the tariff that are consistent with this Section
10 and with the Commission's authority under Article IX of this
11 Act, subject to notice and hearing. Following notice and
12 hearing, the Commission shall issue an order approving, or
13 approving with modification, such tariff no later than 240
14 days after the utility files its tariff. Upon the effective
15 date of this amendatory Act of the 102nd General Assembly, an
16 electric utility shall file a petition with the Commission to
17 amend and update any existing tariffs to comply with
18 subsections (b) and (c).
19 (e) By no later than June 30, 2023, the Commission shall
20 open an independent, statewide investigation into the value
21 of, and compensation for, distributed energy resources. The
22 Commission shall conduct the investigation, but may arrange
23 for experts or consultants independent of the utilities and
24 selected by the Commission to assist with the investigation.
25 The cost of the investigation shall be shared by the utilities
26 filing tariffs under subsection (b) of this Section but may be
HB1700 Enrolled - 769 - LRB104 08228 SPS 18278 b
1 recovered as an expense through normal ratemaking procedures.
2 (1) The Commission shall ensure that the investigation
3 includes, at minimum, diverse sets of stakeholders; a
4 review of best practices in calculating the value of
5 distributed energy resource benefits; a review of the full
6 value of the distributed energy resources and the manner
7 in which each component of that value is or is not
8 otherwise compensated; and assessments of how the value of
9 distributed energy resources may evolve based on the
10 present and future technological capabilities of
11 distributed energy resources and based on present and
12 future grid needs.
13 (2) The Commission's final order concluding this
14 investigation shall establish an annual process and
15 formula for the compensation of distributed generation and
16 energy storage systems, and an initial set of inputs for
17 that formula. The Commission's final order concluding this
18 investigation shall establish base rebates that compensate
19 distributed generation, community renewable generation
20 projects and energy storage systems for the system-wide
21 grid services that they provide. Those base rebate values
22 shall be consistent across the state, and shall not vary
23 by customer, customer class, customer location, or any
24 other variable. With respect to rebates for distributed
25 generation or community renewable generation projects,
26 that rebate shall not be lower than $250 per kilowatt of
HB1700 Enrolled - 770 - LRB104 08228 SPS 18278 b
1 nameplate generating capacity of the distributed
2 generation or community renewable generation project. The
3 Commission's final order concluding this proceeding shall
4 also direct the utilities to update the formula, on an
5 annual basis, with inputs derived from their integrated
6 grid plans developed pursuant to Section 16-105.17. The
7 base rebate shall be updated annually based on the annual
8 updates to the formula inputs, but, with respect to
9 rebates for distributed generation or community renewable
10 generation projects, shall be no lower than $250 per
11 kilowatt of nameplate generating capacity of the
12 distributed generation or community renewable generation
13 project.
14 (3) The Commission shall also determine, as a part of
15 its investigation under this subsection, whether
16 distributed energy resources can provide any additive
17 services. Those additive services may include services
18 that are provided through utility-controlled responses to
19 grid conditions. If the Commission determines that
20 distributed energy resources can provide additive grid
21 services, the Commission shall determine the terms and
22 conditions for the operation and compensation of those
23 services. That compensation shall be above and beyond the
24 base rebate that the distributed energy generation,
25 community renewable generation project and energy storage
26 system receives. Compensation for additive services may
HB1700 Enrolled - 771 - LRB104 08228 SPS 18278 b
1 vary by location, time, performance characteristics,
2 technology types, or other variables.
3 (4) The Commission shall ensure that compensation for
4 distributed energy resources, including base rebates and
5 any payments for additive services, shall reflect all
6 reasonably known and measurable values of the distributed
7 generation over its full expected useful life.
8 Compensation for additive services shall reflect, but
9 shall not be limited to, any geographic, time-based,
10 performance-based, and other benefits of distributed
11 generation, as well as the present and future
12 technological capabilities of distributed energy resources
13 and present and future grid needs.
14 (5) The Commission shall consider the electric
15 utility's integrated grid plan developed pursuant to
16 Section 16-105.17 of this Act to help identify the value
17 of distributed energy resources for the purpose of
18 calculating the compensation described in this subsection.
19 (6) The Commission shall determine additional
20 compensation for distributed energy resources that creates
21 savings and value on the distribution system by being
22 co-located or in close proximity to electric vehicle
23 charging infrastructure in use by medium-duty and
24 heavy-duty vehicles, primarily serving environmental
25 justice communities, as outlined in the utility integrated
26 grid planning process under Section 16-105.17 of this Act.
HB1700 Enrolled - 772 - LRB104 08228 SPS 18278 b
1 No later than 60 days after the Commission enters its
2 final order under this subsection (e), each utility shall file
3 its updated tariff or tariffs in compliance with the order,
4 including new tariffs for the recovery of costs incurred under
5 this subsection (e) that shall provide for volumetric-based
6 cost recovery, and the Commission shall approve, or approve
7 with modification, the tariff or tariffs within 240 days after
8 the utility's filing.
9 (f) Notwithstanding any provision of this Act to the
10 contrary, the owner or operator of a community renewable
11 generation project as defined in Section 1-10 of the Illinois
12 Power Agency Act shall also be eligible to apply for the rebate
13 described in this Section. The owner or operator of the
14 community renewable generation project may apply for a rebate
15 only if the owner or operator, or previous owner or operator,
16 of the community renewable generation project has not already
17 submitted an application, and, regardless of whether the
18 subscriber is a residential or non-residential customer, may
19 be allowed the amount identified in paragraph (1) of
20 subsection (c) applicable on the date that the application is
21 submitted.
22 (g) The owner of the distributed generation or community
23 renewable generation project may apply for the rebate or
24 rebates approved under this Section at the time of execution
25 of an interconnection agreement with the distribution utility
26 and shall receive the value available at that time of
HB1700 Enrolled - 773 - LRB104 08228 SPS 18278 b
1 execution of the interconnection agreement, provided the
2 project reaches mechanical completion within 24 months after
3 execution of the interconnection agreement. If the project has
4 not reached mechanical completion within 24 months after
5 execution, the owner may reapply for the rebate or rebates
6 approved under this Section available at the time of
7 application and shall receive the value available at the time
8 of application. The utility shall issue the rebate no later
9 than 60 days after the project is energized. In the event the
10 application is incomplete or the utility is otherwise unable
11 to calculate the payment based on the information provided by
12 the owner, the utility shall issue the payment no later than 60
13 days after the application is complete or all requested
14 information is received.
15 (h) An electric utility shall recover from its retail
16 customers all of the costs of the rebates made under a tariff
17 or tariffs approved under subsection (d) of this Section,
18 including, but not limited to, the value of the rebates and all
19 costs incurred by the utility to comply with and implement
20 subsections (b) and (c) of this Section, but not including
21 costs incurred by the utility to comply with and implement
22 subsection (e) of this Section, consistent with the following
23 provisions:
24 (1) The utility shall defer the full amount of its
25 costs as a regulatory asset. The total costs deferred as a
26 regulatory asset shall be amortized over a 15-year period.
HB1700 Enrolled - 774 - LRB104 08228 SPS 18278 b
1 The unamortized balance shall be recognized as of December
2 31 for a given year. The utility shall also earn a return
3 on the total of the unamortized balance of the regulatory
4 assets, less any deferred taxes related to the unamortized
5 balance, at an annual rate equal to the utility's weighted
6 average cost of capital that includes, based on a year-end
7 capital structure, the utility's actual cost of debt for
8 the applicable calendar year and a cost of equity, which
9 shall be calculated as the sum of (i) the average for the
10 applicable calendar year of the monthly average yields of
11 30-year U.S. Treasury bonds published by the Board of
12 Governors of the Federal Reserve System in its weekly H.15
13 Statistical Release or successor publication; and (ii) 580
14 basis points, including a revenue conversion factor
15 calculated to recover or refund all additional income
16 taxes that may be payable or receivable as a result of that
17 return.
18 When an electric utility creates a regulatory asset
19 under the provisions of this paragraph (1) of subsection
20 (h), the costs are recovered over a period during which
21 customers also receive a benefit, which is in the public
22 interest. Accordingly, it is the intent of the General
23 Assembly that an electric utility that elects to create a
24 regulatory asset under the provisions of this paragraph
25 (1) shall recover all of the associated costs, including,
26 but not limited to, its cost of capital as set forth in
HB1700 Enrolled - 775 - LRB104 08228 SPS 18278 b
1 this paragraph (1). After the Commission has approved the
2 prudence and reasonableness of the costs that comprise the
3 regulatory asset, the electric utility shall be permitted
4 to recover all such costs, and the value and
5 recoverability through rates of the associated regulatory
6 asset shall not be limited, altered, impaired, or reduced.
7 To enable the financing of the incremental capital
8 expenditures, including regulatory assets, for electric
9 utilities that serve less than 3,000,000 retail customers
10 but more than 500,000 retail customers in the State, the
11 utility's actual year-end capital structure that includes
12 a common equity ratio, excluding goodwill, of up to and
13 including 50% of the total capital structure shall be
14 deemed reasonable and used to set rates.
15 (2) The utility, at its election, may recover all of
16 the costs as part of a filing for a general increase in
17 rates under Article IX of this Act, as part of an annual
18 filing to update a performance-based formula rate under
19 subsection (d) of Section 16-108.5 of this Act, or through
20 an automatic adjustment clause tariff, provided that
21 nothing in this paragraph (2) permits the double recovery
22 of such costs from customers. If the utility elects to
23 recover the costs it incurs under subsections (b) and (c)
24 through an automatic adjustment clause tariff, the utility
25 may file its proposed tariff together with the tariff it
26 files under subsection (b) of this Section or at a later
HB1700 Enrolled - 776 - LRB104 08228 SPS 18278 b
1 time. The proposed tariff shall provide for an annual
2 reconciliation, less any deferred taxes related to the
3 reconciliation, with interest at an annual rate of return
4 equal to the utility's weighted average cost of capital as
5 calculated under paragraph (1) of this subsection (h),
6 including a revenue conversion factor calculated to
7 recover or refund all additional income taxes that may be
8 payable or receivable as a result of that return, of the
9 revenue requirement reflected in rates for each calendar
10 year, beginning with the calendar year in which the
11 utility files its automatic adjustment clause tariff under
12 this subsection (h), with what the revenue requirement
13 would have been had the actual cost information for the
14 applicable calendar year been available at the filing
15 date. The Commission shall review the proposed tariff and
16 may make changes to the tariff that are consistent with
17 this Section and with the Commission's authority under
18 Article IX of this Act, subject to notice and hearing.
19 Following notice and hearing, the Commission shall issue
20 an order approving, or approving with modification, such
21 tariff no later than 240 days after the utility files its
22 tariff.
23 (i) An electric utility shall recover from its retail
24 customers, on a volumetric basis, all of the costs of the
25 rebates made under a tariff or tariffs placed into effect
26 under subsection (e) of this Section, including, but not
HB1700 Enrolled - 777 - LRB104 08228 SPS 18278 b
1 limited to, the value of the rebates and all costs incurred by
2 the utility to comply with and implement subsection (e) of
3 this Section, consistent with the following provisions:
4 (1) The utility may defer a portion of its costs as a
5 regulatory asset. The Commission shall determine the
6 portion that may be appropriately deferred as a regulatory
7 asset. Factors that the Commission shall consider in
8 determining the portion of costs that shall be deferred as
9 a regulatory asset include, but are not limited to: (i)
10 whether and the extent to which a cost effectively
11 deferred or avoided other distribution system operating
12 costs or capital expenditures; (ii) the extent to which a
13 cost provides environmental benefits; (iii) the extent to
14 which a cost improves system reliability or resilience;
15 (iv) the electric utility's distribution system plan
16 developed pursuant to Section 16-105.17 of this Act; (v)
17 the extent to which a cost advances equity principles; and
18 (vi) such other factors as the Commission deems
19 appropriate. The remainder of costs shall be deemed an
20 operating expense and shall be recoverable if found
21 prudent and reasonable by the Commission.
22 The total costs deferred as a regulatory asset shall
23 be amortized over a 15-year period. The unamortized
24 balance shall be recognized as of December 31 for a given
25 year. The utility shall also earn a return on the total of
26 the unamortized balance of the regulatory assets, less any
HB1700 Enrolled - 778 - LRB104 08228 SPS 18278 b
1 deferred taxes related to the unamortized balance, at an
2 annual rate equal to the utility's weighted average cost
3 of capital that includes, based on a year-end capital
4 structure, the utility's actual cost of debt for the
5 applicable calendar year and a cost of equity, which shall
6 be calculated as the sum of: (I) the average for the
7 applicable calendar year of the monthly average yields of
8 30-year U.S. Treasury bonds published by the Board of
9 Governors of the Federal Reserve System in its weekly H.15
10 Statistical Release or successor publication; and (II) 580
11 basis points, including a revenue conversion factor
12 calculated to recover or refund all additional income
13 taxes that may be payable or receivable as a result of that
14 return.
15 (2) The utility may recover all of the costs through
16 an automatic adjustment clause tariff, on a volumetric
17 basis. The utility may file its proposed cost-recovery
18 tariff together with the tariff it files under subsection
19 (e) of this Section or at a later time. The proposed tariff
20 shall provide for an annual reconciliation, less any
21 deferred taxes related to the reconciliation, with
22 interest at an annual rate of return equal to the
23 utility's weighted average cost of capital as calculated
24 under paragraph (1) of this subsection (i), including a
25 revenue conversion factor calculated to recover or refund
26 all additional income taxes that may be payable or
HB1700 Enrolled - 779 - LRB104 08228 SPS 18278 b
1 receivable as a result of that return, of the revenue
2 requirement reflected in rates for each calendar year,
3 beginning with the calendar year in which the utility
4 files its automatic adjustment clause tariff under this
5 subsection (i), with what the revenue requirement would
6 have been had the actual cost information for the
7 applicable calendar year been available at the filing
8 date. The Commission shall review the proposed tariff and
9 may make changes to the tariff that are consistent with
10 this Section and with the Commission's authority under
11 Article IX of this Act, subject to notice and hearing.
12 Following notice and hearing, the Commission shall issue
13 an order approving, or approving with modification, such
14 tariff no later than 240 days after the utility files its
15 tariff.
16 (j) No later than 90 days after the Commission enters an
17 order, or order on rehearing, whichever is later, approving an
18 electric utility's proposed tariff under this Section, the
19 electric utility shall provide notice of the availability of
20 rebates under this Section.
21 (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22;
22 103-1066, eff. 2-20-25.)
23 (Text of Section after amendment by P.A. 104-458)
24 Sec. 16-107.6. Distributed generation and storage rebate.
25 (a) In this Section:
HB1700 Enrolled - 780 - LRB104 08228 SPS 18278 b
1 "Additive services" means the services that distributed
2 energy resources provide to the energy system and society that
3 are described in Section 16-107.9.
4 "Distributed energy resource" means a wide range of
5 technologies that are located on the customer side of the
6 customer's electric meter, including, but not limited to,
7 distributed generation, energy storage, electric vehicles, and
8 demand response technologies.
9 "Distributed storage" means energy storage systems that
10 are interconnected behind the customer's meter to the
11 distribution system or interconnected behind the storage
12 system's own meter to the distribution system and that are
13 permanently fixed to the distribution grid and capable of
14 discharging to the distribution grid. "Distributed storage"
15 does not include vehicle storage systems.
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, that and may be interconnected
21 behind the customer's meter or interconnected behind its own
22 meter, and that is permanently fixed to the distribution grid
23 and capable of discharging to the distribution grid.
24 "Smart inverter" means a device that converts direct
25 current into alternating current and meets the IEEE 1547-2018
26 equipment standards. Until devices that meet the IEEE
HB1700 Enrolled - 781 - LRB104 08228 SPS 18278 b
1 1547-2018 standard are available, devices that meet the UL
2 1741 SA standard are acceptable.
3 "Stand-alone energy storage system" means distributed
4 storage that is not paired with distributed generation.
5 "Subscriber" has the meaning set forth in Section 1-10 of
6 the Illinois Power Agency Act.
7 "Subscription" has the meaning set forth in Section 1-10
8 of the Illinois Power Agency Act.
9 "System-wide grid services" means the benefits that a
10 distributed energy resource provides to the distribution grid
11 for a period of no less than 25 years. System-wide grid
12 services do not vary by location, time, or the performance
13 characteristics of the distributed energy resource.
14 System-wide grid services include, but are not limited to,
15 avoided or deferred distribution capacity costs, resilience
16 and reliability benefits, avoided or deferred distribution
17 operation and maintenance costs, distribution voltage and
18 power quality benefits, and line loss reductions.
19 "Threshold date" means the date 2 years after the
20 effective date of this amendatory Act of the 104th General
21 Assembly or the date on which the utility's tariff or tariffs
22 authorized by Section 16-107.9 take effect, whichever is
23 later.
24 (b) An electric utility that serves more than 200,000
25 customers in the State shall file a petition with the
26 Commission requesting approval of the utility's tariff to
HB1700 Enrolled - 782 - LRB104 08228 SPS 18278 b
1 provide a rebate to the owner or operator of distributed
2 generation or distributed storage, including third-party owned
3 systems, that meets the following criteria:
4 (1) has a nameplate generating capacity no greater
5 than 5,000 kilowatts alternating current (AC) and is
6 primarily used to offset a customer's electricity load, or
7 as otherwise as defined for community renewable generation
8 projects in Section 1-10 of the Illinois Power Agency Act;
9 (2) is located on the customer's side of the billing
10 meter and for the customer's own use;
11 (3) is interconnected to electric distribution
12 facilities owned by the electric utility under rules
13 adopted by the Commission by means of one or more
14 inverters or smart inverters required by this Section, as
15 applicable.
16 For purposes of this Section, "distributed generation"
17 shall satisfy the definition of distributed renewable energy
18 generation device set forth in Section 1-10 of the Illinois
19 Power Agency Act to the extent such definition is consistent
20 with the requirements of this Section.
21 In addition, any new photovoltaic distributed generation
22 that is installed after June 1, 2017 (the effective date of
23 Public Act 99-906) must be installed by a qualified person, as
24 defined by subsection (i) of Section 1-56 of the Illinois
25 Power Agency Act.
26 The tariff shall include a base rebate that compensates
HB1700 Enrolled - 783 - LRB104 08228 SPS 18278 b
1 distributed generation and distributed storage for the
2 system-wide grid services associated with distributed
3 generation and distributed storage and an additional payment
4 or payments for any additive services identified by the
5 Commission under Section 16-107.9. The distributed generation
6 and distributed storage tariff shall provide that the smart
7 inverter or smart inverters associated with the distributed
8 generation and distributed storage shall provide autonomous
9 response to grid conditions through its default settings as
10 approved by the Commission. Default settings may not be
11 changed after the execution of the interconnection agreement
12 except by mutual agreement between the utility and the owner
13 or operator of the distributed generation and distributed
14 storage. Nothing in this Section shall negate or supersede
15 Institute of Electrical and Electronics Engineers equipment
16 standards or other similar standards or requirements. The
17 tariff shall not limit the ability of the smart inverter or
18 smart inverters or other distributed energy resource to
19 provide wholesale market products such as regulation, demand
20 response, or other services, or limit the ability of the owner
21 of the smart inverter or the other distributed energy resource
22 to receive compensation for providing those wholesale market
23 products or services.
24 (b-5) Within 30 days after the effective date of this
25 amendatory Act of the 102nd General Assembly, each electric
26 public utility with 3,000,000 or more retail customers shall
HB1700 Enrolled - 784 - LRB104 08228 SPS 18278 b
1 file a tariff with the Commission that further compensates any
2 retail customer that installs or has installed photovoltaic
3 facilities paired with energy storage facilities on or
4 adjacent to its premises for the benefits the facilities
5 provide to the distribution grid. The tariff shall provide
6 that, in addition to the other rebates identified in this
7 Section, the electric utility shall rebate to such retail
8 customer (i) the previously incurred and future costs of
9 installing interconnection facilities and related
10 infrastructure to enable full participation in the PJM
11 Interconnection, LLC or its successor organization frequency
12 regulation market; and (ii) all wholesale demand charges
13 incurred after the effective date of this amendatory Act of
14 the 102nd General Assembly. The Commission shall approve, or
15 approve with modification, the tariff within 120 days after
16 the utility's filing.
17 To be eligible for a rebate described in this subsection
18 (b-5), the owner or operator of the distributed generation
19 shall provide proof of participation in the frequency
20 regulation market. Upon providing proof of participation, the
21 retail customer shall be entitled to a rebate equal to the cost
22 of the interconnection facilities paid to ComEd, regardless of
23 whether the retail customer would have incurred the
24 interconnection costs in the absence of participating in the
25 frequency regulation market, plus the cost of software,
26 telecommunications hardware, and telemetry paid to enable
HB1700 Enrolled - 785 - LRB104 08228 SPS 18278 b
1 communication with PJM for purposes of participating in the
2 frequency regulation market. A utility providing rebates
3 described in this subsection (b-5) shall be entitled to
4 recover the costs of the rebates as provided for in subsection
5 (h) of this Section. To the extent the electric utility's
6 tariff is modified to comply with this subsection (b-5), it
7 shall file a revised tariff with the Commission within 120
8 days after the effective date of this amendatory Act of the
9 104th General Assembly, and the Commission shall approve, or
10 approve with modification, the tariff within 240 days after
11 the Commission initiates the docket.
12 (c) The proposed tariff authorized by subsection (b) of
13 this Section shall include the following participation terms
14 for rebates to be applied under this Section for distributed
15 generation and distributed storage that satisfies the criteria
16 set forth in subsection (b) of this Section:
17 (1) The owner or operator of distributed generation or
18 distributed storage that services customers not eligible
19 for net metering under subsection (d), (d-5), or (e) of
20 Section 16-107.5 of this Act may apply for a rebate as
21 provided for in this Section. The value of the rebate
22 shall be $250 per kilowatt of nameplate generating
23 capacity, measured as nominal DC power output, of that
24 customer's distributed generation. To the extent the
25 distributed generation also has an associated energy
26 storage, then until the threshold date for systems other
HB1700 Enrolled - 786 - LRB104 08228 SPS 18278 b
1 than community renewable generation projects paired with
2 an energy storage system, the energy storage system shall
3 be separately compensated with a rebate of $250 per
4 kilowatt-hour of nameplate capacity. To the extent that a
5 community renewable generation project is paired with an
6 energy storage system or an energy storage system that is
7 paired with distributed generation, the energy storage
8 system shall be separately compensated with a rebate of
9 $250 per kilowatt-hour of nameplate capacity. A
10 stand-alone energy storage system shall be compensated
11 with a rebate of $250 per kilowatt-hour of nameplate
12 capacity. Any distributed generation device that is
13 compensated for storage in this paragraph subsection (1)
14 after the effective date of this amendatory Act of the
15 104th General Assembly shall participate in one or more
16 programs authorized by paragraph (1) of subsection (e).
17 Compensation for any additive services shall be as
18 determined by the Commission in the proceeding described
19 in Section 16-107.9. Except for distributed storage
20 projects that have obtained a signed interconnection
21 agreement on or before June 1, 2026, the compensation
22 provided for distributed storage under this paragraph (1)
23 shall be limited to payment for no more than 25,000
24 kilowatt-hours of nameplate energy capacity and no more
25 than 5 kilowatt-hours of nameplate energy capacity for
26 every one kilowatt of participating power capacity, or an
HB1700 Enrolled - 787 - LRB104 08228 SPS 18278 b
1 alternative nameplate energy capacity to participating
2 power capacity ratio determined by the Commission to
3 enable participation in an approved scheduled dispatch
4 program under paragraph (1) of subsection (e) or any
5 additive services or other programs as determined by the
6 Commission in a proceeding described under Section
7 16-107.9. Notwithstanding any limitation on compensation
8 for distributed storage under this paragraph (1), for
9 distributed storage projects with more than 25,000
10 kilowatt-hours of nameplate energy capacity that
11 demonstrate that the project's interconnection application
12 under 83 Ill. Adm. Code 466 or 83 Ill. Adm. Code 467 was
13 submitted and application fees were paid before June 1,
14 2026, the compensation provided for distributed storage
15 under this paragraph (1) shall be limited to payment for
16 no more than 150,000 kilowatt-hours of nameplate energy
17 capacity and no more than 5 kilowatt-hours of nameplate
18 energy capacity for every one kilowatt of participating
19 power capacity for any single meter, but for no more than 2
20 meters per entity. Commitments to dispatch by such storage
21 systems in an approved scheduled dispatch program under
22 subsection (e) shall be mandatory. To the extent that an
23 electric utility's tariffs are inconsistent with the
24 requirements of this paragraph (1) as modified by this
25 amendatory Act of the 104th General Assembly, the electric
26 utility shall, within 60 days after the effective date of
HB1700 Enrolled - 788 - LRB104 08228 SPS 18278 b
1 this amendatory Act of the 104th General Assembly, file
2 modified tariffs consistent with the requirements of this
3 paragraph (1). If the Commission chooses to suspend the
4 modified tariffs following notice and hearing, the
5 Commission shall issue an order approving, or approving
6 with modification, the modified tariffs no later than 90
7 days after the Commission initiates the docket.
8 (2) The owner or operator of distributed generation
9 that, before January 1, 2025 the threshold date, would
10 have been eligible for net metering under subsection (d),
11 (d-5), or (e) of Section 16-107.5 of this Act and that has
12 not previously received a distributed generation rebate,
13 may apply for a rebate as provided for in this Section.
14 Until December 31, 2029, the value of the base rebate
15 shall be $300 per kilowatt of nameplate generating
16 capacity, measured as nominal DC power output, of the
17 distributed generation. On or after January 1, 2030, the
18 value of the base rebate shall be $250 per kilowatt of
19 nameplate generating capacity, measured as nominal DC
20 power output, of the distributed generation. The owner or
21 operator of distributed generation that, before January 1,
22 2025 the threshold date, is eligible for net metering
23 under subsection (d), (d-5), or (e) of Section 16-107.5 of
24 this Act may apply for a base rebate for an associated
25 energy storage device behind the same retail customer
26 meter as the distributed generation, regardless of whether
HB1700 Enrolled - 789 - LRB104 08228 SPS 18278 b
1 the distributed generation applies for a rebate for the
2 distributed generation device. Distributed storage An
3 energy storage system, whether or not paired with
4 distributed generation, shall be separately compensated at
5 a base payment of $300 per kilowatt-hour of nameplate
6 capacity until December 31, 2029 the threshold date. After
7 December 31, 2029 the threshold date, a stand-alone energy
8 storage system shall be compensated with a rebate of $250
9 per kilowatt-hour of nameplate capacity. Any distributed
10 generation device that is compensated for storage in this
11 subsection (2) has the option to participate in either an
12 hourly pricing program or time-of-use rate program and any
13 distributed generation device that is compensated for
14 storage in this subsection (2) after the effective date of
15 this amendatory Act of the 104th General Assembly shall
16 participate in a scheduled dispatch program set forth in
17 paragraph (1) of subsection (e) when it becomes available.
18 Compensation for any additive services or other programs
19 shall be as determined by the Commission in the proceeding
20 described in Section 16-107.9. Except for distributed
21 storage projects that have obtained a signed
22 interconnection agreement on or before June 1, 2026, the
23 compensation provided for distributed storage under this
24 paragraph (2) shall be limited to payment for no more than
25 25,000 kilowatt-hours of nameplate energy capacity and no
26 more than 5 kilowatt-hours of nameplate energy capacity
HB1700 Enrolled - 790 - LRB104 08228 SPS 18278 b
1 for every one kilowatt of participating power capacity, or
2 an alternative nameplate energy capacity to participating
3 power capacity ratio determined by the Commission to
4 enable participation in an approved scheduled dispatch
5 program under paragraph (1) of subsection (e) or any
6 additive services or other programs as determined by the
7 Commission in a proceeding described under Section
8 16-107.9. Notwithstanding any limitation on compensation
9 for distributed storage under this paragraph (2), for
10 distributed storage projects with more than 25,000
11 kilowatt-hours of nameplate energy capacity that
12 demonstrate that the project's interconnection application
13 under 83 Ill. Adm. Code 466 or 83 Ill. Adm. Code 467 was
14 submitted and application fees were paid before June 1,
15 2026, the compensation provided for distributed storage
16 under this paragraph (2) shall be limited to payment for
17 no more than 150,000 kilowatt-hours of nameplate energy
18 capacity and no more than 5 kilowatt-hours of nameplate
19 energy capacity for every one kilowatt of participating
20 power capacity for any single meter, but for no more than 2
21 meters per entity. Commitments to dispatch by such storage
22 systems in an approved scheduled dispatch program under
23 subsection (e) shall be mandatory. To the extent that an
24 electric utility's tariffs are inconsistent with the
25 requirements of this paragraph (2) as modified by this
26 amendatory Act of the 104th General Assembly, such
HB1700 Enrolled - 791 - LRB104 08228 SPS 18278 b
1 electric utility shall, within 60 days, file modified
2 tariffs consistent with the requirements of this paragraph
3 (2).
4 (3) Upon approval of a rebate application submitted
5 under this subsection (c), the retail customer shall no
6 longer be entitled to receive any delivery service credits
7 for the excess electricity generated by its facility and
8 shall be subject to the provisions of subsection (n) of
9 Section 16-107.5 of this Act unless the owner or operator
10 receives a rebate only for an energy storage device and
11 not for the distributed generation device.
12 (4) To be eligible for a rebate described in this
13 subsection (c), the owner or operator of the distributed
14 generation must have a smart inverter installed and in
15 operation on the distributed generation.
16 (5) The owner or operator of any distributed
17 generation or distributed storage system whose electric
18 service has not been declared competitive under Section
19 16-113 as of July 1, 2011 or the owner or operator of a
20 community renewable generation project participating in
21 the Adjustable Block Program as a community-driven
22 community solar project as defined in item (v) of
23 subparagraph (K) of paragraph (1) of subsection (c) of
24 Section 1-75 of the Illinois Power Agency Act and that has
25 an interconnection agreement dated after the effective
26 date of this amendatory Act of the 104th General Assembly
HB1700 Enrolled - 792 - LRB104 08228 SPS 18278 b
1 shall be eligible for an additional payment or payments to
2 the applicable rebate under paragraphs (1) or (2) of this
3 subsection (c) in an amount set by tariff and approved by
4 the Commission if located in an equity investment eligible
5 community, as defined in Section 1-10 of the Illinois
6 Power Agency Act, at the time the interconnection
7 agreement is signed.
8 (d) The Commission shall review the proposed tariff
9 authorized by subsection (b) of this Section and may make
10 changes to the tariff that are consistent with this Section
11 and with the Commission's authority under Article IX of this
12 Act, subject to notice and hearing. Following notice and
13 hearing, the Commission shall issue an order approving, or
14 approving with modification, such tariff no later than 240
15 days after the utility files its tariff. Upon the effective
16 date of this amendatory Act of the 102nd General Assembly, an
17 electric utility shall file a petition with the Commission to
18 amend and update any existing tariffs to comply with
19 subsections (b) and (c).
20 (e) By no later than June 30, 2026, the Commission shall
21 establish a scheduled dispatch virtual power plant program in
22 which customers that own or operate an energy storage system
23 for which that receive a rebate for the distributed storage
24 portion was provided under paragraphs (1) and (2) of
25 subsection (c) are required to participate.
26 (1) The scheduled dispatch virtual power plant program
HB1700 Enrolled - 793 - LRB104 08228 SPS 18278 b
1 shall require an enrollment period of 5 years and require
2 each participating system to commit to dispatch each
3 weekday during the months of June, July, August, and
4 September from 4 p.m. to 6 p.m. for systems interconnected
5 behind the meter of a retail customer and from 4 p.m. to 7
6 p.m. for systems interconnected on the distribution system
7 of an electric utility and not behind the meter of a retail
8 customer. For stand-alone storage that is not paired with
9 distributed generation or any electric load beyond the
10 electric load that is used by the energy storage system
11 itself, commitments to dispatch shall be voluntary. Upon
12 petition by the applicable electric utility or on its own
13 motion, the Commission may approve different dispatch
14 schedules provided that dispatch events do not exceed 80
15 days and shall not exceed 2 hours for systems
16 interconnected behind the meter of a retail customer or 3
17 hours for systems interconnected on the distribution
18 system of an electric utility and not behind the meter of a
19 retail customer.
20 (2) The scheduled dispatch virtual power plant program
21 shall be open to all customer classes with eligible
22 distributed storage energy resources and shall measure
23 performance based on combined export of paired resources
24 if the eligible device is inverter-based renewables paired
25 with storage through at least December 31, 2030 and until
26 the Commission approves and the utility implements a
HB1700 Enrolled - 794 - LRB104 08228 SPS 18278 b
1 tariff under subsection (d) of Section 16-107.9 of this
2 Act, at which time such customers shall be transitioned to
3 that tariff in a manner prescribed in the tariff. The
4 scheduled dispatch virtual power plant program shall be
5 required for all community renewable generation projects
6 paired with distributed storage energy resources without
7 regard to the threshold date. For the purposes of this
8 subsection (e), "dispatch" includes any offsets of
9 customer usage and any exports to the utility's
10 distribution system.
11 (3) Compensation shall be set by the Commission but
12 shall not be less than $10 per kilowatt of average
13 dispatch during identified hours, paid to enrolled
14 customers or project owners at end of program year. For
15 distributed storage generation interconnected to an
16 electric utility's distribution system and not behind the
17 meter of a retail customer, dispatch to determine
18 compensation shall be measured at point of
19 interconnection. For distributed generation and storage
20 interconnected behind the meter of a retail customer,
21 dispatch to determine compensation shall be measured at
22 the inverter connected to the storage device.
23 (4) No later than June 1, 2026, each public utility
24 shall file an initial scheduled dispatch virtual power
25 plant tariff. The Commission shall approve, or approve
26 with modifications, the initial scheduled dispatch virtual
HB1700 Enrolled - 795 - LRB104 08228 SPS 18278 b
1 power plant tariff for each utility not later than June
2 30, 2026.
3 (5) The Commission, by its own motion or by petition
4 by an electric utility, may establish other additive
5 services programs in addition to the virtual power plant
6 program under Section 16-107.9. Nothing in this Section is
7 intended to preempt or delay the implementation of other
8 utility programs for devices that are not a part of the
9 scheduled dispatch virtual power plant program that the
10 Commission or utility may propose or require.
11 (6) No later than December 31, 2028, the utilities
12 shall file with the Commission a report that includes
13 information on the following: (A) the number of
14 participants in the scheduled dispatch program; (B)
15 impacts to energy supply prices and wholesale market
16 activities; (C) impacts on distribution system investments
17 and planning; and (D) any potential pathways by which the
18 virtual power plan program described in Section 16-107.9
19 may be designed to capture wholesale market value through
20 participation in the wholesale market and apply that
21 wholesale market revenue to reduce utility distribution or
22 electric supply rates for customers.
23 (f) Notwithstanding any provision of this Act to the
24 contrary, the owner or operator of a community renewable
25 generation project as defined in Section 1-10 of the Illinois
26 Power Agency Act whether or not a paired energy storage system
HB1700 Enrolled - 796 - LRB104 08228 SPS 18278 b
1 or the owner or operator of an energy storage system that is
2 eligible for net metering under subsection (l-10) of Section
3 16-107.5 shall also be eligible to apply for the rebate
4 described in this Section. The owner or operator of the
5 community renewable generation project whether or not a paired
6 energy storage system or the owner or operator of an energy
7 storage system that is eligible for net metering under
8 subsection (l-10) of Section 16-107.5 may apply for a rebate
9 only if the owner or operator, or previous owner or operator,
10 of the community renewable generation project whether or not a
11 paired energy storage system or the owner or operator of an
12 energy storage system that is eligible for net metering under
13 subsection (l-10) of Section 16-107.5 has not already
14 submitted an application, and, regardless of whether the
15 subscriber is a residential or non-residential customer, may
16 be allowed the amount identified in paragraph (1) of
17 subsection (c) applicable on the date that the application is
18 submitted.
19 (g) The owner of a distributed storage system, whether or
20 not paired with distributed generation, may apply for the
21 rebate or rebates approved under this Section at the time of
22 execution of an interconnection agreement with the
23 distribution utility and shall receive the value available at
24 that time of execution of the interconnection agreement. The
25 utility shall issue the rebate no later than 60 days after the
26 project is energized. In the event the application is
HB1700 Enrolled - 797 - LRB104 08228 SPS 18278 b
1 incomplete or the utility is otherwise unable to calculate the
2 payment based on the information provided by the owner, the
3 utility shall issue the payment no later than 60 days after the
4 application is complete or all requested information is
5 received.
6 (h) An electric utility shall recover from its retail
7 customers all of the costs of the rebates made under a tariff
8 or tariffs approved under this Section, including, but not
9 limited to, the value of the rebates and all costs incurred by
10 the utility to comply with and implement subsections (b),
11 (b-5), (c), and (e) of this Section, consistent with the
12 following provisions:
13 (1) The utility shall defer the full amount of its
14 costs as a regulatory asset. The total costs deferred as a
15 regulatory asset shall be amortized over a 15-year period.
16 The unamortized balance shall be recognized as of December
17 31 for a given year. The utility shall also earn a return
18 on the total of the unamortized balance of the regulatory
19 assets, less any deferred taxes related to the unamortized
20 balance, at an annual rate equal to the utility's weighted
21 average cost of capital that includes, based on a year-end
22 capital structure, the utility's actual cost of debt for
23 the applicable calendar year and a cost of equity, which
24 shall be equal to the baseline cost of equity approved by
25 the Commission for the utility's electric distribution
26 rates case effective during the applicable year, whether
HB1700 Enrolled - 798 - LRB104 08228 SPS 18278 b
1 those rates are set pursuant to Section 9-201,
2 subparagraph (B) of paragraph (3) of subsection (d) of
3 Section 16-108.18, or any successor electric distribution
4 ratemaking paradigm.
5 When an electric utility creates a regulatory asset
6 under the provisions of this paragraph (1) of subsection
7 (h), the costs are recovered over a period during which
8 customers also receive a benefit, which is in the public
9 interest. Accordingly, it is the intent of the General
10 Assembly that an electric utility that elects to create a
11 regulatory asset under the provisions of this paragraph
12 (1) shall recover all of the associated costs, including,
13 but not limited to, its cost of capital as set forth in
14 this paragraph (1). After the Commission has approved the
15 prudence and reasonableness of the costs that comprise the
16 regulatory asset, the electric utility shall be permitted
17 to recover all such costs, and the value and
18 recoverability through rates of the associated regulatory
19 asset shall not be limited, altered, impaired, or reduced.
20 To enable the financing of the incremental capital
21 expenditures, including regulatory assets, for electric
22 utilities that serve less than 3,000,000 retail customers
23 but more than 500,000 retail customers in the State, the
24 utility's actual year-end capital structure that includes
25 a common equity ratio, excluding goodwill, of up to and
26 including 50% of the total capital structure shall be
HB1700 Enrolled - 799 - LRB104 08228 SPS 18278 b
1 deemed reasonable and used to set rates.
2 (2) The utility, at its election, may recover all of
3 the costs as part of a filing for a general increase in
4 rates under Article IX of this Act, as part of an annual
5 filing to update a performance-based rate under Section
6 16-108.18, or through an automatic adjustment clause
7 tariff, provided that nothing in this paragraph (2)
8 permits the double recovery of such costs from customers.
9 If the utility elects to recover the costs it incurs under
10 subsections (b), (b-5), (c), and (e) through an automatic
11 adjustment clause tariff, the utility may file its
12 proposed tariff together with the tariff it files under
13 subsection (b) of this Section or at a later time. The
14 proposed tariff shall provide for an annual
15 reconciliation, less any deferred taxes related to the
16 reconciliation, with interest at an annual rate of return
17 equal to the utility's weighted average cost of capital as
18 calculated under paragraph (1) of this subsection (h),
19 including a revenue conversion factor calculated to
20 recover or refund all additional income taxes that may be
21 payable or receivable as a result of that return, of the
22 revenue requirement reflected in rates for each calendar
23 year, beginning with the calendar year in which the
24 utility files its automatic adjustment clause tariff under
25 this subsection (h), with what the revenue requirement
26 would have been had the actual cost information for the
HB1700 Enrolled - 800 - LRB104 08228 SPS 18278 b
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 (i) (Blank).
11 (j) No later than 90 days after the Commission enters an
12 order, or order on rehearing, whichever is later, approving an
13 electric utility's proposed tariff under this Section, the
14 electric utility shall provide notice of the availability of
15 rebates under this Section.
16 (k) No later than January 1, 2030, the utilities shall
17 file with the Commission a report that includes:
18 (1) the number and geographic distribution of
19 participants receiving rebates pursuant to this Section;
20 (2) impacts to energy supply prices and wholesale
21 market activities;
22 (3) impacts on distribution system investments and
23 planning; and
24 (4) any other values deemed relevant by the
25 Commission.
26 (l) Upon petition by the applicable electric utility or on
HB1700 Enrolled - 801 - LRB104 08228 SPS 18278 b
1 its own motion, the Commission may adjust rebate levels for
2 new customers and make other appropriate changes to the rebate
3 program in a manner that is consistent with the State's clean
4 energy goals and the public interest.
5 (m) A vehicle storage system, as defined in Section
6 16-107.5, is not eligible for a rebate under this Section.
7 (Source: P.A. 103-1066, eff. 2-20-25; 104-458, eff. 6-1-26.)
8 (220 ILCS 5/16-107.9)
9 (This Section may contain text from a Public Act with a
10 delayed effective date)
11 Sec. 16-107.9. Virtual power plant program.
12 (a) As used in this Section:
13 "Aggregator" means a third-party entity that participates
14 in the program, other than the electric utility or its
15 affiliate, that (i) represents and aggregates the load of
16 participating customers who collectively have the ability to
17 deploy 100 kilowatts or more of deployment of eligible devices
18 and (ii) is responsible for performance of the aggregation in
19 the program.
20 "Battery" means a behind-the-meter energy storage device
21 and associated equipment that operate together to fulfill
22 program requirements.
23 "Commission" means the Illinois Commerce Commission.
24 "Customer" means an active electric service account holder
25 of a utility.
HB1700 Enrolled - 802 - LRB104 08228 SPS 18278 b
1 "Direct participant" means a customer that enrolls in the
2 program directly with the utility, rather than participating
3 in the program through an aggregator.
4 "Distributed energy resource" has the meaning set forth in
5 Section 16-107.6.
6 "Distributed energy resources management system" means a
7 platform that may be used by distribution system operators or
8 utilities to integrate grid resources, such as distributed
9 energy resources, into system operations.
10 "Eligible device" means a customer or third party-owned
11 distributed energy resource that satisfies the requirements
12 for participation in the program as specified in the relevant
13 program rider. "Eligible device" also means any device that
14 can be controlled to respond to pricing, provide services,
15 including decrease peak electricity demand or shift demand
16 from peak to off-peak periods, or inject power to the grid.
17 "Eligible device" includes, but is not limited to,
18 behind-the-meter energy storage systems, smart thermostats,
19 electric vehicle batteries, including fleets, and distributed
20 renewable energy devices paired with one or more energy
21 storage systems.
22 "Emergency event" means an event called by the utility
23 with fewer than 24 hours notice.
24 "Energy storage system" has the meaning set forth in
25 subsection (a) of Section 16-107.6.
26 "Enrolled customer" means a customer that participates in
HB1700 Enrolled - 803 - LRB104 08228 SPS 18278 b
1 the program through either an aggregator or as a direct
2 participant.
3 "Enrolled device" means an enrolled customer's eligible
4 device, as specified in the relevant tariff.
5 "Enterprise distributed energy resources management
6 system" means a platform operated by the electric utility that
7 interfaces with a grid-edge distributed energy resources
8 management system to integrate distributed energy resources
9 into utility electric system operations.
10 "Grid-edge distributed energy resources management system"
11 means a platform owned by a party other than the electric
12 utility that may be used to integrate distributed energy
13 resources.
14 "Grid event" means a grid condition for which the utility
15 schedules or remotely dispatches enrolled devices to respond
16 to, as specified in the grid service opportunities for each
17 tariff.
18 "Grid service" means a capacity, energy, or ancillary
19 service that supports grid operations.
20 "Participating customer" means an aggregator or a direct
21 retail customer, as defined in Section 16-102, with one or
22 more eligible devices.
23 "Performance payment" means a payment made to the
24 participant based on the performance of an enrolled device
25 providing a grid service during a grid event.
26 "Performance payment rate" means the compensation rate
HB1700 Enrolled - 804 - LRB104 08228 SPS 18278 b
1 paid to participants for providing a particular grid service
2 during a grid event.
3 "Smart inverter" has the meaning set forth in subsection
4 (a) of Section 16-107.6.
5 "Upfront payment" means a one-time payment made at the
6 time of enrollment.
7 "Virtual power plant" means an aggregation of
8 behind-the-meter distributed energy resources operated in
9 coordination to provide one or more grid services.
10 (b) The General Assembly finds that:
11 (1) virtual power plants are dynamic load management
12 and energy supply resources that can support grid
13 operations, reduce ratepayer costs, and achieve other
14 important public policy goals;
15 (2) virtual power plants can reduce demand for grid
16 supplied electricity during peak periods, shift
17 electricity consumption out of peak periods, make
18 renewable energy generated during off-peak periods
19 available for use during peak periods, supply energy to
20 the grid at desired times, provide frequency regulation,
21 voltage support, and other ancillary services, reduce
22 strain on the distribution system, manage localized peaks,
23 improve system resiliency and reliability, and provide
24 other grid services;
25 (3) virtual power plants can facilitate and optimize
26 the utilization of electrical generation from wind and
HB1700 Enrolled - 805 - LRB104 08228 SPS 18278 b
1 solar energy to help utilities increase hosting capacity
2 and integrate more renewable energy resources;
3 (4) virtual power plants can reduce costs to
4 ratepayers by utilizing customer-sited resources to
5 provide grid services, avoiding or reducing reliance on
6 fossil-fuel fired peaker plants, avoiding or deferring the
7 need to construct new and more costly grid scale
8 resources, optimizing the use of existing assets, and
9 avoiding or deferring distribution and transmission system
10 upgrades and other grid investments;
11 (5) virtual power plants can promote equity by
12 reducing costs for all ratepayers, expanding access to
13 distributed energy resources among low-income and
14 moderate-income customers through improved distributed
15 energy resource finance ability, and providing other
16 important co-benefits, including reduction in emissions of
17 greenhouse gases and other pollutants, especially in
18 environmental justice and other disadvantaged communities
19 that host fossil fuel generation plants;
20 (6) the United States Department of Energy estimates
21 that the United States could deploy 80 to 160 gigawatts of
22 virtual power plants by 2030, a tripling of current
23 levels, to support the rapid electrification of vehicles
24 and homes and provide on the order of $10,000,000,000 in
25 ratepayer savings annually. The deployment of virtual
26 power plants can provide energy cost savings and other
HB1700 Enrolled - 806 - LRB104 08228 SPS 18278 b
1 benefits to the people of Illinois;
2 (7) there are significant barriers to deployment and
3 operation of virtual power plants, including the need for
4 statutory and regulatory guidance and support, greater
5 consistency in virtual power plant programs across
6 regulatory jurisdictions, and for utility commitments to
7 incorporate the use of virtual power plants into system
8 operations and long-term resource planning;
9 (8) it is in the public interest to advance customer
10 choice and leverage the expertise of private, non-utility
11 entities to advance innovation and implement
12 cost-effective clean energy solutions; and
13 (9) the policy of Illinois shall be to maximize the
14 use of virtual power plants comprised of customer-owned
15 and third party-owned distributed energy resources to
16 deliver system services and other benefits through utility
17 administered virtual power plant programs in accordance
18 with the provisions of this amendatory Act of the 104th
19 General Assembly.
20 (c) No later than December 31, 2028, the Commission shall
21 approve at least one virtual power plant tariff for each
22 electric utility serving more than 300,000 customers in the
23 State as of January 1, 2023. Each utility shall file a tariff
24 or tariffs for approval no later than December 31, 2027 to
25 allow retail customers in the electric utility's service areas
26 to participate in a virtual power plant program proposal
HB1700 Enrolled - 807 - LRB104 08228 SPS 18278 b
1 consistent with the provisions of this Section. The Commission
2 shall provide opportunities for stakeholders to provide input
3 on the virtual power plant programs proposed for
4 implementation by each utility, which the Commission shall
5 take into consideration in its review of each utility's
6 filing. No later than one year after the utility's filing, the
7 Commission shall approve or modify and approve each utility's
8 virtual power plant program proposal for immediate
9 implementation by the utility.
10 (d) The virtual power plant program filed under subsection
11 (c) shall be developed for implementation through a tariff
12 offering with standard terms and conditions for participation.
13 The virtual power plant program tariff shall allow for
14 customers with battery storage, non-battery storage and
15 electric vehicle technologies to enroll the devices in the
16 program through aggregators or directly with the utility. The
17 virtual power plant program tariff shall:
18 (1) provide a mechanism to incorporate existing
19 programs, such as smart thermostat demand-response or
20 electric vehicle charging programs currently offered by
21 the utility, under the virtual power plant program
22 framework;
23 (2) provide grid services opportunities for each
24 eligible technology that customers and aggregators may
25 provide, which shall include, at minimum, reducing the
26 utility's applicable capacity and transmission obligations
HB1700 Enrolled - 808 - LRB104 08228 SPS 18278 b
1 and capturing daily wholesale energy arbitrage
2 opportunities through provision of grid services;
3 (3) provide additional functions and grid service
4 opportunities that the Commission determines are
5 supportive of efficient planning and operation of the
6 electrical grid, including:
7 (A) minimizing the use of fossil fuels at peak
8 times;
9 (B) local peak demand reductions;
10 (C) locational value;
11 (D) the avoidance or deferral of local
12 transmission or distribution upgrades or capacity
13 expansion;
14 (E) voltage support and other ancillary services;
15 and
16 (F) emergency grid services;
17 (4) provide operational parameters, which shall
18 include, at a minimum:
19 (A) minimum and maximum numbers of grid events for
20 which the utility may require dispatch from the
21 enrolled distributed energy resources;
22 (B) months of the year that grid events may occur;
23 (C) days of the week that grid events may occur;
24 (D) times of day that grid events may occur;
25 (E) maximum duration of grid events; and
26 (F) minimum day-ahead advance notification
HB1700 Enrolled - 809 - LRB104 08228 SPS 18278 b
1 requirement of grid events, except for emergency
2 events, as applicable;
3 (5) include provisions for aggregators to participate
4 in the virtual power plant program, participate in the
5 utility's distributed energy resource management system as
6 available, automatically enroll and manage their
7 customers' participation, receive dispatch signals and
8 other communications from the utility, deliver performance
9 measurement and verification data to the utility, and
10 receive virtual power plant program payments directly from
11 the utility;
12 (6) include provisions that provide a standardized
13 process for any eligible aggregator to enroll in the
14 program and authorize the eligible aggregators to manage
15 individual customer device participation without
16 additional authorizations from the utility;
17 (7) include provisions that allow a participating
18 customer with multiple eligible devices to enroll the
19 technologies either directly without an aggregator or
20 through one or more aggregators in applicable programs
21 under the tariff approved under this Section, provided
22 that no particular device is accounted for more than once;
23 (8) include provisions for direct participant
24 customers to participate with the utility's distributed
25 energy resource management system as available, receive
26 dispatch signals and other communications from the
HB1700 Enrolled - 810 - LRB104 08228 SPS 18278 b
1 utility, deliver performance measurement and verification
2 data to the utility, and receive virtual power plant
3 program payments directly from the utility. Any provisions
4 implementing this subpart that necessitate the
5 installation of equipment to enable direct participation
6 via the utility shall apply to customers who elect to
7 participate as a direct participant and shall not be
8 required of customers who participate via an aggregator or
9 to customers who do not participate in the virtual power
10 plant program;
11 (9) provide for measurement and verification of
12 battery non-battery, and electric vehicle technologies
13 performance directly at the device without the requirement
14 for the installation of an additional meter;
15 (10) include upfront payment or performance payment
16 compensation mechanisms for the peak reduction service, as
17 well as for non-battery and electric vehicle technologies
18 as the Commission deems appropriate. The performance
19 payment shall be based on the average capacity provided
20 during grid events. The Commission shall approve
21 additional compensation mechanisms as it determines
22 appropriate for other grid services provided under the
23 battery, non-battery and electric vehicle riders. The
24 virtual power plant program shall not assess penalties for
25 non-performance; provided, however, that the Commission
26 may approve reasonable mechanisms to disenroll customers
HB1700 Enrolled - 811 - LRB104 08228 SPS 18278 b
1 for continued non-performance;
2 (11) enable low-to-moderate income customers,
3 community-driven community solar projects, and customers
4 whose electric service has not been declared competitive
5 pursuant to Section 16-113 as of July 1, 2011 located in
6 equity investment eligible investment communities to
7 receive a higher upfront enrollment payment. The
8 Commission shall coordinate with State energy officials
9 and departments to make funding from federal programs and
10 such other sources as may be available for use in
11 providing higher upfront payments to customers classes as
12 may be approved by the Commission in accordance with this
13 subsection;
14 (12) provide that the performance payment rate
15 applicable at the time of enrollment shall be for 5 years,
16 after which time the participant may reenroll at the then
17 applicable performance payment rate for an additional
18 5-year term;
19 (13) provide for a transition of customers from the
20 scheduled dispatch program described in Section 16-107.6
21 to the virtual power plant program; and
22 (14) allow enrolled customers to participate in other
23 applicable interconnection tariffs and grid service
24 programs outside the virtual power plant program, so long
25 as it does not result in double-counting of benefits for
26 the same grid services.
HB1700 Enrolled - 812 - LRB104 08228 SPS 18278 b
1 (e) The Commission may adopt other reasonable requirements
2 for participation consistent with this subsection, provided
3 that collateral from an aggregator shall not be required for
4 participation.
5 (f) The utility may contract with a third party-owned
6 distributed energy resource management system provider to
7 assist with program implementation; however, implementation
8 shall not be delayed due to the lack of utility-owned
9 distributed energy resource management system capabilities or
10 third party-owned distributed energy resource management
11 system capabilities.
12 (g) The utility shall not send or receive dispatch signals
13 directly to or from any participating customer represented by
14 an aggregator for an event under the virtual power plant
15 program described in this Section.
16 (h) Participating aggregators shall have capabilities to
17 receive event signals from utilities or utility-contracted
18 distributed energy resources management system providers. To
19 facilitate the adoption of and participation in the virtual
20 power plant program, the utility shall allow and enable
21 participating customers to expeditiously share their customer
22 information with aggregators in order to serve any contracted
23 customers and comply with any reporting requirements.
24 (i) Utilities shall recover reasonably and prudently
25 incurred costs to facilitate the virtual power plant program
26 approved under subsection (c), including, but not limited to,
HB1700 Enrolled - 813 - LRB104 08228 SPS 18278 b
1 distributed energy resource management systems provider and
2 other service contract costs, operations and maintenance
3 expenses, information technology costs, and other costs,
4 expenses, and investments that the Commission finds necessary
5 and prudent for the development and implementation of the
6 program. The utility shall recover the cost of virtual power
7 plant program upfront payments and performance payments and
8 such other payments made to participants through the tariff
9 filed pursuant to subsection (h) of Section 16-107.6.
10 (j) No later than January 31 of each year, each utility
11 shall file an annual report that includes, but is not limited
12 to:
13 (1) the total capacity enrolled in each program rider
14 developed in accordance with the requirements of Section,
15 broken down by technology type, customer class, and
16 aggregator and direct participant status for each grid
17 service opportunity offered in the prior calendar year;
18 (2) recommendations to increase participation in the
19 virtual power plant program; and
20 (3) any other information that the Commission may
21 require.
22 (k) Each utility shall amend existing tariffs and
23 procedures that limit the ability of customers to participate
24 in providing grid services under the program, such as
25 limitations on charging energy storage devices with grid
26 energy or exporting energy to the grid from battery discharge.
HB1700 Enrolled - 814 - LRB104 08228 SPS 18278 b
1 (l) The tariffs approved by the Commission shall not
2 reflect any additional charges, fees, or insurance
3 requirements imposed on those owning or operating
4 demand-response technologies beyond those imposed on similarly
5 situated customers that do not own or operate demand-response
6 technologies.
7 (m) As a condition of participating in the programs
8 described in this Section, prior to enrollment of a customer
9 by an aggregator, the aggregator shall disclose the following:
10 (1) the payments, expressed as an amount or a formula,
11 to be provided to the customer;
12 (2) between the aggregator and customer, who is
13 responsible for paying penalties or fees; and
14 (3) between the aggregator and customer, who is
15 responsible for posting collateral, if required.
16 Any tariff authorized by this Section shall incorporate
17 the requirements under this subsection and shall require the
18 electric utility to establish a complaint and Commission
19 notification process and, on order of the Commission, suspend
20 any aggregator repeatedly or egregiously violating such
21 requirements.
22 (Source: P.A. 104-458, eff. 6-1-26.)
23 (220 ILCS 5/16-202)
24 (This Section may contain text from a Public Act with a
25 delayed effective date)
HB1700 Enrolled - 815 - LRB104 08228 SPS 18278 b
1 Sec. 16-202. Integrated resource plan review and approval.
2 (a) The Commission shall enter its order approving or
3 approving with modifications an integrated resource plan
4 within 180 days after the agencies filing the plan and any
5 companion reports or other information. The Commission may
6 extend the period of review of the plan for no more than an
7 additional 180 days.
8 (b) The Commission may approve a plan or a modified plan
9 and authorize its implementation only if, after notice and
10 hearing, including the conduct of discovery and taking of
11 evidence, it finds that the plan:
12 (1) addresses any resource adequacy challenges in the
13 5 years immediately following approval of the plan, while
14 also taking into account the 10 years following the plan;
15 (2) prepares the State to best address issues of
16 resource adequacy at the least amount of CO2e and
17 copollutant emissions;
18 (3) considers the emissions' impacts on environmental
19 justice communities while taking into account all
20 applicable labor and equity standards;
21 (4) supports the provisioning of adequate, reliable,
22 affordable, efficient, and environmentally sustainable
23 electric service at the lowest total cost over time; and
24 (5) utilizes the expansion of renewable energy, energy
25 storage, virtual power plants and distributed energy
26 storage, energy efficiency, demand response, time-of-use
HB1700 Enrolled - 816 - LRB104 08228 SPS 18278 b
1 rates or other mechanisms designed to manage peak load,
2 transmission development, carbon mitigation credits or any
3 other clean energy strategies to the maximum extent
4 practicable to resolve any identified resource adequacy
5 shortfall or reliability violation in a cost-effective,
6 affordable, timely, and clean manner.
7 (c) The Commission may, as a part of its decision to
8 approve a plan or modified plan and to the extent consistent
9 with the uniform allocation of costs required under subsection
10 (k) of Section 16-108, order changes to existing plans or
11 programs, direct specific actions within existing plans or
12 programs, including the authorization to support the expansion
13 of an existing plan or program, including, but not limited to:
14 (1) any of the following plans or programs designed to
15 increase the amount of generation and capacity available:
16 (i) the Long-Term Renewable Resources Procurement
17 Plan, including programs and procurements authorized
18 through that Plan, and to increase the limitations
19 placed on the procurement of renewable energy
20 resources established pursuant to subparagraph (E) of
21 paragraph (1) of subsection (c) of Section 1-75 of the
22 Illinois Power Agency Act in order to increase,
23 direct, or adjust procurements of renewable energy
24 resources to support new renewable energy projects;
25 (ii) the Energy Storage Resources Procurement
26 Plan, including programs and procurements authorized
HB1700 Enrolled - 817 - LRB104 08228 SPS 18278 b
1 through that Plan, and to increase the procurement of
2 energy storage established pursuant to subsection
3 (d-20) of Section 1-75 of the Illinois Power Agency
4 Act in order to increase or adjust procurements for
5 new energy storage;
6 (iii) the carbon mitigation credit procurement
7 plans established pursuant to subsection (d-10) of
8 Section 1-75 of the Illinois Power Agency Act in order
9 to preserve existing carbon-free energy resources,
10 including extending or expanding carbon mitigation
11 credit contract awards in accordance with a new
12 schedule of baseline costs;
13 (iv) the Illinois Power Agency's annual
14 electricity procurement plans established pursuant to
15 paragraph (2) of subsection (d) of Section 16-111.5,
16 including modification of the products to be procured
17 and allowing for costs associated with the purchase of
18 new or additional products to be socialized across all
19 retail customers or all load-serving entities, as
20 applicable; and
21 (v) any plan to reduce or delay CO2e and
22 copollutant emissions reductions requirements that is
23 submitted by the Illinois Power Agency and
24 Environmental Protection Agency and approved by the
25 Commission under subsection (o) of Section 9.15 of the
26 Environmental Protection Act; and
HB1700 Enrolled - 818 - LRB104 08228 SPS 18278 b
1 (vi) (v) any additional plans or programs designed
2 to procure appropriate sources of new clean energy and
3 capacity resources, including any associated clean
4 attribute credits; and
5 (2) any of the following designed to manage energy
6 demand, including, but not limited to:
7 (i) extending or expanding the energy efficiency
8 programs implemented by electric utilities and the
9 limitation on the amount of energy efficiency and
10 demand-response measures implemented pursuant to
11 Section 8-103B in order to gain increased load
12 reductions; and
13 (ii) the Multi-Year Integrated Grid Plans
14 implemented by electric utilities pursuant to Section
15 16-105.17 in order to extend or expand programs
16 related to peak load management and reduction,
17 including, but not limited to, virtual power plants,
18 front of the meter distributed storage, demand
19 response, and time-of-use rates.
20 (d) If all of the changes made to the plans or programs
21 pursuant to this Section would reasonably be insufficient to
22 balance supply and demand and avoid a resource adequacy
23 shortfall, then the Commission may delay, in whole or in part,
24 the CO2e and copollutant emissions reductions requirements
25 found in Section 9.15 of the Environmental Protection Act but
26 only to the minimum extent and duration necessary to address
HB1700 Enrolled - 819 - LRB104 08228 SPS 18278 b
1 the resource adequacy shortfall needs of the State. If the
2 Commission finds that reducing or delaying the emissions
3 reductions requirements is necessary, despite any or all of
4 the changes made pursuant to this Section, then it shall also
5 include in its final order recommendations to the General
6 Assembly on what additional policies may be adopted that could
7 avoid future modifications to the emissions reductions.
8 (e) Unless otherwise specified by the Commission, the
9 order approving the plan or modified plan shall become
10 effective January 1 of the calendar year immediately following
11 the issuance of the order. The agencies, electric utilities,
12 and any other impacted entities shall comply with any of the
13 Commission's orders, and when required seek approval from the
14 Commission and make any required modifications to their plans,
15 programs, or related initiatives in a manner consistent with
16 the process and timing for those changes as outlined in the
17 approved plans or, if none is specified, as soon as
18 practicable. If the integrated resource plan approved by the
19 Commission contains recommendations that are outside the
20 Commission's authority, the Commission shall communicate any
21 such recommendations to the Governor and the General Assembly.
22 (f) Given the critical and rapid actions required under
23 this Section, the Commission may procure the services of any
24 facilitator, expert, or consultant, including the procurement
25 monitor retained by the Commission pursuant to paragraph (2)
26 of subsection (c) of Section 16-111.5. Such procurement is
HB1700 Enrolled - 820 - LRB104 08228 SPS 18278 b
1 exempt from the requirements of the Illinois Procurement Code,
2 pursuant to Section 20-10 of that Code.
3 (g) Costs that are prudently and reasonably incurred by
4 electric utilities to comply with the requirements of this
5 Section shall be recovered and shall be excluded from the
6 calculation performed under paragraph (6) of subsection (f) of
7 Section 16-108.18. Nothing in the Commission's order directing
8 changes to a prior approved plan as enumerated in this Section
9 shall be the sole basis for a finding of imprudence or
10 unreasonableness or the lack of use or usefulness of any
11 investment or expenditure.
12 (h) If the Commission's final order under this Section
13 includes the approval of rate increases through the expansion
14 of existing plans or programs, the creation of new plans or
15 programs, or the increase of limitations placed on
16 procurements as described under paragraphs (1) and (2) of
17 subsection (c), the Commission shall submit notice to the
18 General Assembly of the increases included in the final order,
19 including the estimated monthly cost impact on customers and
20 the expected costs savings or benefits of such actions. After
21 receipt of a notice, any member of the General Assembly may
22 introduce in the General Assembly a joint resolution stating
23 that the General Assembly desires to suspend the rate
24 increases, or suspend a portion of the rate increases,
25 identified in the final order and specifying the rationale for
26 the General Assembly's determination.
HB1700 Enrolled - 821 - LRB104 08228 SPS 18278 b
1 (1) If the General Assembly passes a joint resolution
2 under this subsection (h) that takes effect prior to the
3 effective date of the Commission's final order, the
4 General Assembly shall send notice to the Commission of
5 the resolution, and the Commission shall suspend its final
6 order. Within 30 days of receipt of the General Assembly's
7 notice, the Commission shall reopen the docket approving
8 the plan or modified plan in order to take into account the
9 General Assembly's reduction or elimination of the rate
10 increases. The Commission shall approve the modified plan
11 within 120 days of reopening the docket, including the
12 conduct of discovery and the taking of evidence, and send
13 notice to the General Assembly of its modified plan. The
14 General Assembly may rescind its desire to suspend the
15 rate increases, or suspend a portion of the rate
16 increases, by adoption of a subsequent joint resolution by
17 each chamber of the General Assembly within 30 days of
18 receipt of the Commission's notice that would put into
19 effect the Commission's original final order.
20 (2) If the General Assembly fails to pass a joint
21 resolution under this subsection (h) prior to the
22 effective date of the Commission's final order, the
23 associated rate increases shall go into effect pursuant to
24 the schedule specified in the Commission's final order
25 approving the plan or modified plan.
26 (i) The Commission may adopt rules to implement the
HB1700 Enrolled - 822 - LRB104 08228 SPS 18278 b
1 requirements of this Section.
2 (Source: P.A. 104-458, eff. 6-1-26.)
3 (220 ILCS 5/20-140)
4 (This Section may contain text from a Public Act with a
5 delayed effective date)
6 Sec. 20-140. Interconnection Working Group.
7 (a) The Commission shall establish an Interconnection
8 Working Group. The Working Group shall include representatives
9 from electric utilities, developers of renewable electric
10 generating facilities, representatives of new large loads
11 seeking grid interconnection, other industries that regularly
12 apply for interconnection with the electric utilities as
13 appropriate, representatives of distributed generation
14 customers, the Commission staff, and other stakeholders with a
15 substantial interest in the topics addressed by the
16 Interconnection Working Group.
17 (b) The Interconnection Working Group shall address at
18 least the following issues in relation to new generation and
19 new large loads:
20 (1) the cost of and the best available technology for
21 interconnection and metering, including the
22 standardization and publication of standard costs;
23 (2) transparency, accuracy, and use of the
24 distribution interconnection queue and hosting capacity
25 maps;
HB1700 Enrolled - 823 - LRB104 08228 SPS 18278 b
1 (3) distribution system upgrade cost avoidance through
2 use of advanced inverter functions, energy storage, and
3 load management;
4 (4) predictability of the queue management process and
5 enforcement of timelines;
6 (5) benefits and challenges associated with group
7 studies and cost sharing;
8 (6) minimum requirements for application to the
9 interconnection process and throughout the interconnection
10 process to avoid queue clogging behavior;
11 (7) the process and customer service for
12 interconnecting customers adopting distributed energy
13 resources, including energy storage;
14 (8) options for metering distributed energy resources,
15 including energy storage;
16 (9) interconnection of new technologies, including
17 smart inverters and energy storage;
18 (10) collection, examination, and sharing of data on
19 Level 1 interconnection costs, including cost and type of
20 upgrades required for interconnection, and the use of this
21 data to inform the final standardized cost of Level 1
22 interconnection;
23 (11) determination of a single standardized cost for
24 Level 1 interconnections, which shall not exceed $200; and
25 (12) such other technical, policy, and tariff issues
26 related to and affecting interconnection performance and
HB1700 Enrolled - 824 - LRB104 08228 SPS 18278 b
1 customer service as determined by the Interconnection
2 Working Group.
3 (c) The Commission may create subcommittees of the
4 Interconnection Working Group to focus on specific issues of
5 importance, as appropriate.
6 (d) The Interconnection Working Group shall report to the
7 Commission on recommended improvements to interconnection
8 rules, tariffs, and policies as determined by the
9 Interconnection Working Group at least every year. A report
10 shall include consensus recommendations of the Interconnection
11 Working Group and, if applicable, additional recommendations
12 for which consensus was not reached. Non-consensus shall not
13 be a basis for excluding recommendations that are majority or
14 minority recommendations. The Commission shall use the report
15 from the Interconnection Working Group to determine whether
16 processes should be commenced to formally codify or implement
17 the recommendations. The Interconnection Working Group shall
18 provide the reports under this subsection (d) to the
19 Commission on at least the following topics in the order
20 listed below within a reasonable time, but no later than 12
21 months, after the effective date of this amendatory Act of the
22 104th General Assembly: (A) a mechanism for good cause
23 extensions to construction timelines as long as the
24 interconnection customer reasonably demonstrates progress; (B)
25 a mechanism for all electric utilities to accept cash, letters
26 of credit, or bonds for any deposits required under the
HB1700 Enrolled - 825 - LRB104 08228 SPS 18278 b
1 interconnection agreement; (C) cost sharing for distribution
2 system upgrades and interconnection facilities for multiple
3 interconnection customers attempting to interconnect on the
4 same feeder or substation; (D) requirements that utilities
5 initiate the interconnection study process interconnection
6 studies process without delay based on queue position or
7 status of applications ahead in the queue, and associated
8 requirements for disclosure of contingent upgrades; (E)
9 provisions allowing for queue reservation for the
10 interconnection of projects installed on public school land to
11 accommodate timing constraints of school board approval and
12 budgeting; and (F) if feasible within the time allotted for
13 the initial report, parameters for utility interconnection
14 studies of energy storage systems not paired with distributed
15 generation that are based on the proposed operational profile
16 of the energy storage systems.
17 (d-5) Within 12 months after the report directed by
18 subsection (d) has been submitted, the Working Group shall
19 report to the Commission on the following: (A) mandatory
20 disclosures on the hosting capacity map and studies for
21 contingent upgrades including timelines for notice of
22 responsibility and payment; (B) a framework for concurrent
23 study on multiple feeders for a distributed energy resource;
24 and (C) if not provided in the initial report required under
25 subsection (d), parameters for utility interconnection studies
26 of energy storage systems not paired with distributed
HB1700 Enrolled - 826 - LRB104 08228 SPS 18278 b
1 generation that are based on the proposed operational profile
2 of the energy storage systems.
3 (d-10) Within 12 months after the report directed by
4 subsection (d-5) has been submitted, the Working Group shall
5 report to the Commission on the following: (A) dynamic hosting
6 capacity maps; (B) standards for public queue and hosting
7 capacity map information regarding individual projects in
8 queue, including (i) distributed generation nameplate
9 capacity, (ii) paired or stand-alone energy storage system
10 nameplate capacity, (iii) detailed estimated upgrade costs,
11 and (iv) systems that have completed upgrades and withdrawn
12 projects; and (C) timelines for refund of deposits if the
13 interconnection agreement is terminated. Within the same time
14 period, utilities shall publish all final interconnection
15 agreements, facilities studies, and system impact studies.
16 (d-15) Within 12 months after the report directed by
17 subsection (d-10) has been submitted, the Working Group shall
18 report to the Commission on the following: (A) level of detail
19 of costs in system impact and facilities studies and level 2
20 studies; and (B) a cap on charges to the interconnection
21 customer based on a percentage of the non-binding cost
22 estimate in the facilities study, system impact study, or
23 level 2 study.
24 (e) In collaboration with the General Counsel of the
25 Commission, the Office of Retail Market Development shall
26 develop policies and procedures to facilitate employees of the
HB1700 Enrolled - 827 - LRB104 08228 SPS 18278 b
1 Office in leading the Interconnection Working Group without
2 interference with docketed proceedings. The policies and
3 procedures developed under this subsection (e) shall be
4 designed to allow the Interconnection Working Group to work
5 without interruption.
6 (Source: P.A. 104-458, eff. 6-1-26.)
7 (220 ILCS 5/23-115)
8 (This Section may contain text from a Public Act with a
9 delayed effective date)
10 Sec. 23-115. Resolution of disputes between facility
11 owners and units of local government related to the siting of
12 qualified energy facilities.
13 (a) The expedited procedures in this Section shall be used
14 to enforce the provisions of the applicable State siting law.
15 (b) No petition may be filed under this Section until the
16 facility owner that intends to file the petition has first
17 notified the respondent of the alleged violation of the
18 applicable State siting law and offered the respondent 7 days
19 to correct or take substantial steps to begin and diligently
20 pursue curing the alleged violation. Provision of notice and
21 the opportunity to correct the situation creates a rebuttable
22 presumption of knowledge under this Section. After the filing
23 of a petition under this Section, the parties may agree to
24 follow the mediation process under Section 10-101.1 of this
25 Act. The time periods specified in subdivision (c)(7) of this
HB1700 Enrolled - 828 - LRB104 08228 SPS 18278 b
1 Section shall be tolled during the time spent in mediation
2 under Section 10-101.1.
3 (c) A facility owner may file a petition with the
4 Commission alleging a violation of the applicable State siting
5 law in accordance with this subsection. The following
6 procedures shall govern the dispute resolution process:
7 (1) The petition shall be filed with the Chief Clerk
8 of the Commission and shall be served in hand upon the
9 respondent, the executive director, and the general
10 counsel of the Commission at the time of the filing.
11 (2) A petition filed under this subsection shall
12 include a statement that the requirements of subsection
13 (b) have been fulfilled and that the respondent did not
14 correct the situation as requested.
15 (3) Reasonable discovery specific to the issue of the
16 petition may commence upon filing of the petition.
17 (4) An answer and any other responsive pleading to the
18 petition shall be filed with the Commission and served at
19 the same time upon the complainant, the executive
20 director, and the general counsel of the Commission within
21 7 days after the date on which the petition is filed.
22 (5) If the answer or responsive pleading raises the
23 issue that the petition violates subsection (f) of this
24 Section, the complainant may file a reply to such
25 allegation within 3 days after actual service of such
26 answer or responsive pleading. Within 4 days after the
HB1700 Enrolled - 829 - LRB104 08228 SPS 18278 b
1 time for filing a reply has expired, the administrative
2 law judge shall either issue a written decision dismissing
3 the petition as frivolous in violation of subsection (f)
4 of this Section including the reasons for such disposition
5 or shall issue an order directing that the petition shall
6 proceed.
7 (6) A pre-hearing conference shall be held within 14
8 days after the date on which the petition is filed.
9 (7) The hearing shall commence within 45 days of the
10 date on which the petition is filed and shall be conducted
11 by an administrative law judge. Parties and the Commission
12 staff shall be entitled to present evidence and legal
13 argument in oral or written form as deemed appropriate by
14 the administrative law judge. The administrative law judge
15 shall issue a proposed order within 90 days after the date
16 on which the petition is filed. The proposed order shall
17 include reasons for the disposition of the petition and,
18 if a violation of the applicable State siting law is
19 found, directions and a deadline for correction of the
20 violation.
21 (8) Any party may file a petition requesting the
22 Commission to review the proposed order of the
23 administrative law judge or arbitrator within 5 days after
24 the proposed order is issued and file exceptions to the
25 proposed order. Any party may file a response to a
26 petition for review within 3 business days after actual
HB1700 Enrolled - 830 - LRB104 08228 SPS 18278 b
1 service of the petition. After the time for filing of the
2 petition for review, but no later than 60 days after the
3 proposed order of the administrative law judge, the
4 Commission shall decide to adopt the proposed order of the
5 administrative law judge or shall issue its own final
6 order.
7 (d) In resolving disputes filed under this Section, the
8 administrative law judge and the Commission shall make
9 determinations based on the requirements and intent of the
10 applicable State siting law.
11 (e) In resolving disputes under this Section, the
12 Commission shall have authority to issue a siting certificate
13 for a qualified energy facility if the Commission determines
14 that the qualified energy facility is in compliance with the
15 applicable State siting law for a qualified energy facility
16 and that the respondent:
17 (1) has the respondent denied the qualified energy
18 facility a siting certificate; and
19 (2) has failed or declined to issue the qualified
20 energy facility a siting certificate in accordance with
21 the specified timeline in the applicable State siting law;
22 or the qualified energy facility is in compliance with the
23 applicable State siting laws for a qualified energy
24 facility.
25 (3) has failed to adopt a siting or zoning ordinance
26 in compliance with the applicable State siting law as of
HB1700 Enrolled - 831 - LRB104 08228 SPS 18278 b
1 the date the petition was filed, as long as the petitioner
2 provided written notice of the respondent's noncompliance
3 to the respondent at least 60 business days before the
4 date the petition was filed.
5 For the purposes of this Section, a commercial wind energy
6 facility and commercial solar energy facility shall be in
7 compliance with Section 5-12020 of the Counties Code and an
8 energy storage system shall be in compliance with Section
9 5-12024 of the Counties Code. If the Commission determines
10 that there is substantial harm to the facility owner, the
11 Commission may, notwithstanding any other provision of this
12 Act, seek temporary, preliminary, or permanent injunctive
13 relief from a court of competent jurisdiction either before or
14 after the hearing.
15 (f) A party shall not bring or defend a proceeding brought
16 under this Section or assert or controvert an issue in a
17 proceeding brought under this Section, unless there is a
18 non-frivolous basis for doing so. By presenting a pleading,
19 written motion, or other paper in petition or defense of the
20 actions or inaction of a party under this Section, a party is
21 certifying to the Commission that to the best of that party's
22 knowledge, information, and belief, formed after a reasonable
23 inquiry of the subject matter of the petition or defense, that
24 the petition or defense is well grounded in law and fact, and
25 under the circumstances:
26 (1) it is not being presented to harass the other
HB1700 Enrolled - 832 - LRB104 08228 SPS 18278 b
1 party, cause unnecessary delay, or create needless
2 increases in the cost of litigation; and
3 (2) the allegations and other factual contentions have
4 evidentiary support or, if specifically so identified, are
5 likely to have evidentiary support after reasonable
6 opportunity for further investigation or discovery as
7 defined herein.
8 (g) If, after notice and a reasonable opportunity to
9 respond, the Commission determines that subsection (f) has
10 been violated, the Commission shall impose appropriate
11 sanctions upon the party or parties that have violated
12 subsection (f) (i) or are responsible for the violation.
13 (h) An appeal of a Commission order made pursuant to this
14 Section shall not effectuate a stay of the order unless a court
15 of competent jurisdiction specifically finds that the party
16 seeking the stay will likely succeed on the merits, that the
17 party will suffer irreparable harm without the stay, and that
18 the stay is in the public interest.
19 (i) The Commission shall assess the parties under this
20 subsection for all of the Commission's costs of investigation
21 and conduct of the proceedings brought under this Section
22 including, but not limited to, the prorated salaries of staff,
23 attorneys, administrative law judges, and support personnel
24 and including any travel and per diem, directly attributable
25 to the petition brought pursuant to this Section, but
26 excluding those costs provided for in subsection (g), dividing
HB1700 Enrolled - 833 - LRB104 08228 SPS 18278 b
1 the costs according to the resolution of the petition brought
2 under this Section. All assessments made under this subsection
3 shall be paid into the Public Utility Fund within 60 days after
4 receiving notice of the assessments from the Commission.
5 Interest at the statutory rate shall accrue after the
6 expiration of the 60-day period. The Commission is authorized
7 to apply to a court of competent jurisdiction for an order
8 requiring payment.
9 (Source: P.A. 104-458, eff. 6-1-26.)
10 Section 25. The Utility Data Access Act is amended by
11 changing Sections 5-10 and 5-15 as follows:
12 (220 ILCS 33/5-10)
13 (This Section may contain text from a Public Act with a
14 delayed effective date)
15 Sec. 5-10. Definitions. As used in this Act:
16 "Account holder" or "customer" means the person or entity
17 authorized to access or modify utility account details.
18 "Aggregated usage data" means an aggregation of covered
19 usage data, where all data associated with a qualified
20 building or qualified property, including, but not limited to,
21 data from tenant meters and from owner meters, are combined
22 into one collective data point per utility data type, per time
23 period, and where any unique identifiers or other personal
24 information are removed or dissociated from individual meter
HB1700 Enrolled - 834 - LRB104 08228 SPS 18278 b
1 data.
2 "Aggregation threshold" means 3 or more unique
3 nonresidential qualified accounts or any combination of 5 or
4 more residential and nonresidential unique qualified accounts
5 of a property or building during the period for which data is
6 requested.
7 "Benchmarking tool" means the ENERGY STAR Portfolio
8 Manager web-based tool or any prudent and cost-effective
9 alternative system or tool approved by the Commission should
10 ENERGY STAR Portfolio Manager become inoperative or no longer
11 useful to achieving the policy goals of the State of Illinois
12 that (i) enables the periodic entry of a building's energy use
13 data and other descriptive information about a building and
14 (ii) rates a building's energy efficiency against that of
15 comparable buildings nationwide.
16 "Commission" means the Illinois Commerce Commission.
17 "Covered usage data" means electric or gas data collected
18 from one or more utility meters that reflects the quantity and
19 period of utility usage in the building, property, or portion
20 thereof.
21 "Data recipient" means:
22 (1) an owner of the property or building;
23 (2) an owner of a portion of a property with regard to
24 covered usage data only for the utility consumption the
25 owner or the owner's tenants, if any, pay for and consume
26 in the owned portion;
HB1700 Enrolled - 835 - LRB104 08228 SPS 18278 b
1 (3) a tenant with regard to covered usage data only
2 for the utility consumption the tenant or the tenant's
3 subtenants, if any, pay for and consume in the space
4 leased by the tenant;
5 (4) the board, in the case of a condominium or
6 cooperative ownership of the property or building; or
7 (5) an agent authorized to receive the covered usage
8 data by anyone in paragraphs (1) through (4).
9 "Property" means:
10 (1) a single tax parcel;
11 (2) 2 or more tax parcels held in the cooperative or
12 condominium form of ownership and governed by a single
13 board of managers; or
14 (3) 2 or more colocated tax parcels owned or
15 controlled by the same entity.
16 "Qualified account" means a utility account that serves
17 some or all of a building or property for which covered usage
18 data is requested and that, as affirmed by the data recipient,
19 was not controlled by the data recipient or its subsidiary
20 during the time period for which covered usage data is
21 requested.
22 "Qualified building" means a building that meets the
23 aggregation threshold.
24 "Qualified data recipient" means a data recipient with
25 respect to a qualified property or qualified building.
26 "Qualified property" means a property that meets the
HB1700 Enrolled - 836 - LRB104 08228 SPS 18278 b
1 aggregation threshold.
2 "Utility" means an entity that is an electric or gas
3 utility with over 100,000 500,000 customers in this State and
4 that is a public utility, as defined in Section 3-105 of the
5 Public Utilities Act.
6 "Utility data type" means electric or gas.
7 (Source: P.A. 104-458, eff. 6-1-26.)
8 (220 ILCS 33/5-15)
9 (This Section may contain text from a Public Act with a
10 delayed effective date)
11 Sec. 5-15. Utility data access.
12 (a) Within 90 days after the effective date of this Act,
13 the Commission shall open a proceeding to establish by rule,
14 consistent with the Illinois Administrative Procedure Act and
15 the requirements of subsection (c), procedures to implement
16 the requirements of this Section. The Commission shall
17 consider industry best practices along with Illinois law,
18 rules, and Commission orders in developing the implementing
19 rules. The governing authority of a public utility district,
20 municipally owned utility, or cooperative utility may adopt a
21 rule adopted by the Commission.
22 (b) No later than 2 years after the effective date of this
23 Act, the Commission shall adopt procedures through the
24 rulemaking proceeding identified in subsection (a) whereby:
25 (1) a utility shall retain usage data in the
HB1700 Enrolled - 837 - LRB104 08228 SPS 18278 b
1 possession of the utility on the effective date of this
2 Act or that is subsequently generated by the utility, for
3 a period 5 years or however long the utility retains usage
4 data in its active billing system, whichever is longer;
5 (2) a utility shall honor an account holder's
6 authorized request to transmit the account holder's
7 covered usage data held by the utility to any entity
8 designated by the account holder;
9 (3) a qualified data recipient with respect to a
10 qualified building or qualified property may request that
11 a utility provide aggregated usage data for the qualified
12 building or qualified property. Aggregated usage data
13 shall include identifiers of all meters associated with
14 the aggregate data and any other information needed for
15 data quality assurance;
16 (4) a utility shall establish a tool or process, or
17 use an existing tool or process, to enable qualified data
18 recipients to request data under this subsection. The tool
19 or process shall meet specifications established by the
20 Commission;
21 (5) the account holder request process and utility
22 delivery of requested data shall be convenient, secure,
23 and at the Commission's direction requests to the utility
24 may be submitted exclusively through an online portal; and
25 (6) a utility shall provide updates or corrections to
26 any previously provided usage information on the schedule
HB1700 Enrolled - 838 - LRB104 08228 SPS 18278 b
1 established in paragraph (5) of subsection (d). Data
2 recipients may request and receive timely revisions
3 correcting any previously provided usage information. A
4 utility shall also provide usage information on the
5 schedule established in paragraph (5) of subsection (d).
6 Notwithstanding any other law, anonymized, aggregated
7 usage data from multiple customer accounts shall not be deemed
8 customer utility usage information, personally identifiable
9 information, or confidential information and shall not be
10 subject to protections for customer utility usage information,
11 personally identifiable information, or confidential
12 information.
13 (c) Any covered usage data that a utility provides to a
14 data recipient under this Section must meet the following
15 requirements:
16 (1) The covered usage data must be available to be
17 requested online. A utility's validation of the
18 requester's identity shall be consistent with, and no more
19 onerous than, the utility's then-current practices.
20 (2) The covered usage data must be provided to the
21 data recipient in a timeframe, frequency, and format and
22 be delivered by a method as may be determined by the
23 Commission.
24 (d) Any covered usage data that a utility provides to a
25 data recipient under this Section must:
26 (1) be provided to the data recipient within 30 days
HB1700 Enrolled - 839 - LRB104 08228 SPS 18278 b
1 after receiving the data recipient's valid request if the
2 request is received after the effective date of the
3 rulemaking identified in subsection (a) of this Section;
4 (2) for any initial upload of data to a data recipient
5 and subject to subsection (j) of this Section, a data
6 recipient must include all the data for the time period
7 required in paragraph (1) of subsection (b), regardless of
8 whether the data recipient had a business relationship
9 with the building or property during that period;
10 (3) include all necessary data and available usage
11 data points for data recipients to comply with reporting
12 requirements to which they are subject, including any such
13 usage data that the utility possesses;
14 (4) be directly uploaded to the benchmarking tool
15 account, or delivered in another format approved by the
16 Commission, depending on utility size under subsection
17 (e);
18 (5) be provided to the data recipient according to a
19 schedule set by the Commission, but no less than monthly;
20 (6) be provided until the data recipient revokes the
21 request for usage data or is no longer a data recipient or
22 is no longer a qualified data recipient with respect to
23 aggregated usage data;
24 (7) be accompanied by a list of all meters associated
25 with the covered usage data, including, but not limited
26 to, aggregated usage data, and shall be accompanied by any
HB1700 Enrolled - 840 - LRB104 08228 SPS 18278 b
1 other information the Commission deems necessary including
2 for data quality assurance; and
3 (8) be provided at no cost to the data recipient.
4 (e) The Commission shall direct that covered usage data
5 shall be delivered to the data recipient in a standard format
6 consistent with the benchmarking tool at the data recipient's
7 request. The Commission shall direct electric utilities that
8 serve at least 100,000 500,000 customers in the State to
9 provide requested data by direct upload to the benchmarking
10 tool and associate the data with the data recipient's
11 benchmarking tool account.
12 (f) To ensure the validity and usefulness of covered usage
13 data, the utility shall provide the best available consumption
14 and other information, consistent with the utility's records
15 as presented to account holders on the utility's customer
16 portal and captured at the meter level.
17 (g) Once covered usage data has been made available to a
18 duly authorized data recipient, such data may not be deleted
19 or altered by a utility system, except as is necessary to
20 correct errors or reflect rebills or is affected as part of the
21 utility's billing data retention policy. If previously
22 provided covered usage data is changed to correct errors,
23 notification must be provided to the data recipient.
24 (h) Within 180 days after the effective date of this Act,
25 the Commission shall adopt a standard form for a utility
26 account holder to authorize the sharing of the utility account
HB1700 Enrolled - 841 - LRB104 08228 SPS 18278 b
1 holder's covered usage data.
2 (i) For properties that do not meet the aggregation
3 threshold and therefore require account holder authorization,
4 the utility shall provide covered usage data to data
5 recipients upon account holder authorization, which:
6 (1) may be provided in Commission-approved form;
7 (2) may be provided in a lease agreement provision;
8 and
9 (3) remains valid until the account holder revokes it,
10 regardless of how the authorization is provided.
11 (j) Access to covered usage data under this Section shall
12 be subject to any rules the Commission has adopted or may
13 choose to adopt, if the rules do not conflict with this
14 Section.
15 (k) Except in cases where the utility has not followed
16 processes established by this Act or the utility is grossly
17 negligent, the utility shall be held harmless for third-party
18 misuse of data shared under this Act and no cause of action may
19 be initiated against the utility for such subsequent misuse.
20 (l) A utility may file for cost recovery of the reasonable
21 and prudently incurred costs of providing covered usage data,
22 including establishing, operating, and maintaining data
23 aggregation and data access services, for the Commission to
24 evaluate. A utility shall make good faith efforts to secure
25 federal, State, or other relevant funding for such investments
26 in the future. Any such funding the utility receives shall be
HB1700 Enrolled - 842 - LRB104 08228 SPS 18278 b
1 deducted from future revenue requirements.
2 (m) The Commission may hire consultants and experts to
3 execute their responsibilities under this Act, with the
4 retention of those consultants and experts exempt from the
5 requirements of Section 20-10 of the Illinois Procurement
6 Code.
7 (Source: P.A. 104-458, eff. 6-1-26.)
8 Section 30. The Environmental Protection Act is amended by
9 changing Section 9.15 as follows:
10 (415 ILCS 5/9.15)
11 (Text of Section before amendment by P.A. 104-458)
12 Sec. 9.15. Greenhouse gases.
13 (a) An air pollution construction permit shall not be
14 required due to emissions of greenhouse gases if the
15 equipment, site, or source is not subject to regulation, as
16 defined by 40 CFR 52.21, as now or hereafter amended, for
17 greenhouse gases or is otherwise not addressed in this Section
18 or by the Board in regulations for greenhouse gases. These
19 exemptions do not relieve an owner or operator from the
20 obligation to comply with other applicable rules or
21 regulations.
22 (b) An air pollution operating permit shall not be
23 required due to emissions of greenhouse gases if the
24 equipment, site, or source is not subject to regulation, as
HB1700 Enrolled - 843 - LRB104 08228 SPS 18278 b
1 defined by Section 39.5 of this Act, for greenhouse gases or is
2 otherwise not addressed in this Section or by the Board in
3 regulations for greenhouse gases. These exemptions do not
4 relieve an owner or operator from the obligation to comply
5 with other applicable rules or regulations.
6 (c) (Blank).
7 (d) (Blank).
8 (e) (Blank).
9 (f) As used in this Section:
10 "Carbon dioxide emission" means the plant annual CO2 total
11 output emission as measured by the United States Environmental
12 Protection Agency in its Emissions & Generation Resource
13 Integrated Database (eGrid), or its successor.
14 "Carbon dioxide equivalent emissions" or "CO2e" means the
15 sum total of the mass amount of emissions in tons per year,
16 calculated by multiplying the mass amount of each of the 6
17 greenhouse gases specified in Section 3.207, in tons per year,
18 by its associated global warming potential as set forth in 40
19 CFR 98, subpart A, table A-1 or its successor, and then adding
20 them all together.
21 "Cogeneration" or "combined heat and power" refers to any
22 system that, either simultaneously or sequentially, produces
23 electricity and useful thermal energy from a single fuel
24 source.
25 "Copollutants" refers to the 6 criteria pollutants that
26 have been identified by the United States Environmental
HB1700 Enrolled - 844 - LRB104 08228 SPS 18278 b
1 Protection Agency pursuant to the Clean Air Act.
2 "Electric generating unit" or "EGU" means a fossil
3 fuel-fired stationary boiler, combustion turbine, or combined
4 cycle system that serves a generator that has a nameplate
5 capacity greater than 25 MWe and produces electricity for
6 sale.
7 "Environmental justice community" means the definition of
8 that term based on existing methodologies and findings, used
9 and as may be updated by the Illinois Power Agency and its
10 program administrator in the Illinois Solar for All Program.
11 "Equity investment eligible community" or "eligible
12 community" means the geographic areas throughout Illinois that
13 would most benefit from equitable investments by the State
14 designed to combat discrimination and foster sustainable
15 economic growth. Specifically, eligible community means the
16 following areas:
17 (1) areas where residents have been historically
18 excluded from economic opportunities, including
19 opportunities in the energy sector, as defined as R3 areas
20 pursuant to Section 10-40 of the Cannabis Regulation and
21 Tax Act; and
22 (2) areas where residents have been historically
23 subject to disproportionate burdens of pollution,
24 including pollution from the energy sector, as established
25 by environmental justice communities as defined by the
26 Illinois Power Agency pursuant to the Illinois Power
HB1700 Enrolled - 845 - LRB104 08228 SPS 18278 b
1 Agency Act, excluding any racial or ethnic indicators.
2 "Equity investment eligible person" or "eligible person"
3 means the persons who would most benefit from equitable
4 investments by the State designed to combat discrimination and
5 foster sustainable economic growth. Specifically, eligible
6 person means the following people:
7 (1) persons whose primary residence is in an equity
8 investment eligible community;
9 (2) persons whose primary residence is in a
10 municipality, or a county with a population under 100,000,
11 where the closure of an electric generating unit or mine
12 has been publicly announced or the electric generating
13 unit or mine is in the process of closing or closed within
14 the last 5 years;
15 (3) persons who are graduates of or currently enrolled
16 in the foster care system; or
17 (4) persons who were formerly incarcerated.
18 "Existing emissions" means:
19 (1) for CO2e, the total average tons-per-year of CO2e
20 emitted by the EGU or large GHG-emitting unit either in
21 the years 2018 through 2020 or, if the unit was not yet in
22 operation by January 1, 2018, in the first 3 full years of
23 that unit's operation; and
24 (2) for any copollutant, the total average
25 tons-per-year of that copollutant emitted by the EGU or
26 large GHG-emitting unit either in the years 2018 through
HB1700 Enrolled - 846 - LRB104 08228 SPS 18278 b
1 2020 or, if the unit was not yet in operation by January 1,
2 2018, in the first 3 full years of that unit's operation.
3 "Green hydrogen" means a power plant technology in which
4 an EGU creates electric power exclusively from electrolytic
5 hydrogen, in a manner that produces zero carbon and
6 copollutant emissions, using hydrogen fuel that is
7 electrolyzed using a 100% renewable zero carbon emission
8 energy source.
9 "Large greenhouse gas-emitting unit" or "large
10 GHG-emitting unit" means a unit that is an electric generating
11 unit or other fossil fuel-fired unit that itself has a
12 nameplate capacity or serves a generator that has a nameplate
13 capacity greater than 25 MWe and that produces electricity,
14 including, but not limited to, coal-fired, coal-derived,
15 oil-fired, natural gas-fired, and cogeneration units.
16 "NOx emission rate" means the plant annual NOx total output
17 emission rate as measured by the United States Environmental
18 Protection Agency in its Emissions & Generation Resource
19 Integrated Database (eGrid), or its successor, in the most
20 recent year for which data is available.
21 "Public greenhouse gas-emitting units" or "public
22 GHG-emitting unit" means large greenhouse gas-emitting units,
23 including EGUs, that are wholly owned, directly or indirectly,
24 by one or more municipalities, municipal corporations, joint
25 municipal electric power agencies, electric cooperatives, or
26 other governmental or nonprofit entities, whether organized
HB1700 Enrolled - 847 - LRB104 08228 SPS 18278 b
1 and created under the laws of Illinois or another state.
2 "SO2 emission rate" means the "plant annual SO2 total
3 output emission rate" as measured by the United States
4 Environmental Protection Agency in its Emissions & Generation
5 Resource Integrated Database (eGrid), or its successor, in the
6 most recent year for which data is available.
7 (g) All EGUs and large greenhouse gas-emitting units that
8 use coal or oil as a fuel and are not public GHG-emitting units
9 shall permanently reduce all CO2e and copollutant emissions to
10 zero no later than January 1, 2030.
11 (h) All EGUs and large greenhouse gas-emitting units that
12 use coal as a fuel and are public GHG-emitting units shall
13 permanently reduce CO2e emissions to zero no later than
14 December 31, 2045. Any source or plant with such units must
15 also reduce their CO2e emissions by 45% from existing
16 emissions by no later than January 1, 2035. If the emissions
17 reduction requirement is not achieved by December 31, 2035,
18 the plant shall retire one or more units or otherwise reduce
19 its CO2e emissions by 45% from existing emissions by June 30,
20 2038.
21 (i) All EGUs and large greenhouse gas-emitting units that
22 use gas as a fuel and are not public GHG-emitting units shall
23 permanently reduce all CO2e and copollutant emissions to zero,
24 including through unit retirement or the use of 100% green
25 hydrogen or other similar technology that is commercially
26 proven to achieve zero carbon emissions, according to the
HB1700 Enrolled - 848 - LRB104 08228 SPS 18278 b
1 following:
2 (1) No later than January 1, 2030: all EGUs and large
3 greenhouse gas-emitting units that have a NOx emissions
4 rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
5 greater than 0.006 lb/MWh, and are located in or within 3
6 miles of an environmental justice community designated as
7 of January 1, 2021 or an equity investment eligible
8 community.
9 (2) No later than January 1, 2040: all EGUs and large
10 greenhouse gas-emitting units that have a NOx emission
11 rate of greater than 0.12 lbs/MWh or a SO2 emission rate
12 greater than 0.006 lb/MWh, and are not located in or
13 within 3 miles of an environmental justice community
14 designated as of January 1, 2021 or an equity investment
15 eligible community. After January 1, 2035, each such EGU
16 and large greenhouse gas-emitting unit shall reduce its
17 CO2e emissions by at least 50% from its existing emissions
18 for CO2e, and shall be limited in operation to, on average,
19 6 hours or less per day, measured over a calendar year, and
20 shall not run for more than 24 consecutive hours except in
21 emergency conditions, as designated by a Regional
22 Transmission Organization or Independent System Operator.
23 (3) No later than January 1, 2035: all EGUs and large
24 greenhouse gas-emitting units that began operation prior
25 to the effective date of this amendatory Act of the 102nd
26 General Assembly and have a NOx emission rate of less than
HB1700 Enrolled - 849 - LRB104 08228 SPS 18278 b
1 or equal to 0.12 lb/MWh and a SO2 emission rate less than
2 or equal to 0.006 lb/MWh, and are located in or within 3
3 miles of an environmental justice community designated as
4 of January 1, 2021 or an equity investment eligible
5 community. Each such EGU and large greenhouse gas-emitting
6 unit shall reduce its CO2e emissions by at least 50% from
7 its existing emissions for CO2e no later than January 1,
8 2030.
9 (4) No later than January 1, 2040: All remaining EGUs
10 and large greenhouse gas-emitting units that have a heat
11 rate greater than or equal to 7000 BTU/kWh. Each such EGU
12 and Large greenhouse gas-emitting unit shall reduce its
13 CO2e emissions by at least 50% from its existing emissions
14 for CO2e no later than January 1, 2035.
15 (5) No later than January 1, 2045: all remaining EGUs
16 and large greenhouse gas-emitting units.
17 (j) All EGUs and large greenhouse gas-emitting units that
18 use gas as a fuel and are public GHG-emitting units shall
19 permanently reduce all CO2e and copollutant emissions to zero,
20 including through unit retirement or the use of 100% green
21 hydrogen or other similar technology that is commercially
22 proven to achieve zero carbon emissions by January 1, 2045.
23 (k) All EGUs and large greenhouse gas-emitting units that
24 utilize combined heat and power or cogeneration technology
25 shall permanently reduce all CO2e and copollutant emissions to
26 zero, including through unit retirement or the use of 100%
HB1700 Enrolled - 850 - LRB104 08228 SPS 18278 b
1 green hydrogen or other similar technology that is
2 commercially proven to achieve zero carbon emissions by
3 January 1, 2045.
4 (k-5) No EGU or large greenhouse gas-emitting unit that
5 uses gas as a fuel and is not a public GHG-emitting unit may
6 emit, in any 12-month period, CO2e or copollutants in excess of
7 that unit's existing emissions for those pollutants.
8 (l) Notwithstanding subsections (g) through (k-5), large
9 GHG-emitting units including EGUs may temporarily continue
10 emitting CO2e and copollutants after any applicable deadline
11 specified in any of subsections (g) through (k-5) if it has
12 been determined, as described in paragraphs (1) and (2) of
13 this subsection, that ongoing operation of the EGU is
14 necessary to maintain power grid supply and reliability or
15 ongoing operation of large GHG-emitting unit that is not an
16 EGU is necessary to serve as an emergency backup to
17 operations. Up to and including the occurrence of an emission
18 reduction deadline under subsection (i), all EGUs and large
19 GHG-emitting units must comply with the following terms:
20 (1) if an EGU or large GHG-emitting unit that is a
21 participant in a regional transmission organization
22 intends to retire, it must submit documentation to the
23 appropriate regional transmission organization by the
24 appropriate deadline that meets all applicable regulatory
25 requirements necessary to obtain approval to permanently
26 cease operating the large GHG-emitting unit;
HB1700 Enrolled - 851 - LRB104 08228 SPS 18278 b
1 (2) if any EGU or large GHG-emitting unit that is a
2 participant in a regional transmission organization
3 receives notice that the regional transmission
4 organization has determined that continued operation of
5 the unit is required, the unit may continue operating
6 until the issue identified by the regional transmission
7 organization is resolved. The owner or operator of the
8 unit must cooperate with the regional transmission
9 organization in resolving the issue and must reduce its
10 emissions to zero, consistent with the requirements under
11 subsection (g), (h), (i), (j), (k), or (k-5), as
12 applicable, as soon as practicable when the issue
13 identified by the regional transmission organization is
14 resolved; and
15 (3) any large GHG-emitting unit that is not a
16 participant in a regional transmission organization shall
17 be allowed to continue emitting CO2e and copollutants
18 after the zero-emission date specified in subsection (g),
19 (h), (i), (j), (k), or (k-5), as applicable, in the
20 capacity of an emergency backup unit if approved by the
21 Illinois Commerce Commission.
22 (m) No variance, adjusted standard, or other regulatory
23 relief otherwise available in this Act may be granted to the
24 emissions reduction and elimination obligations in this
25 Section.
26 (n) By June 30 of each year, beginning in 2025, the Agency
HB1700 Enrolled - 852 - LRB104 08228 SPS 18278 b
1 shall prepare and publish on its website a report setting
2 forth the actual greenhouse gas emissions from individual
3 units and the aggregate statewide emissions from all units for
4 the prior year.
5 (o) Every 5 years beginning in 2025, the Environmental
6 Protection Agency, Illinois Power Agency, and Illinois
7 Commerce Commission shall jointly prepare, and release
8 publicly, a report to the General Assembly that examines the
9 State's current progress toward its renewable energy resource
10 development goals, the status of CO2e and copollutant
11 emissions reductions, the current status and progress toward
12 developing and implementing green hydrogen technologies, the
13 current and projected status of electric resource adequacy and
14 reliability throughout the State for the period beginning 5
15 years ahead, and proposed solutions for any findings. The
16 Environmental Protection Agency, Illinois Power Agency, and
17 Illinois Commerce Commission shall consult PJM
18 Interconnection, LLC and Midcontinent Independent System
19 Operator, Inc., or their respective successor organizations
20 regarding forecasted resource adequacy and reliability needs,
21 anticipated new generation interconnection, new transmission
22 development or upgrades, and any announced large GHG-emitting
23 unit closure dates and include this information in the report.
24 The report shall be released publicly by no later than
25 December 15 of the year it is prepared. If the Environmental
26 Protection Agency, Illinois Power Agency, and Illinois
HB1700 Enrolled - 853 - LRB104 08228 SPS 18278 b
1 Commerce Commission jointly conclude in the report that the
2 data from the regional grid operators, the pace of renewable
3 energy development, the pace of development of energy storage
4 and demand response utilization, transmission capacity, and
5 the CO2e and copollutant emissions reductions required by
6 subsection (i) or (k-5) reasonably demonstrate that a resource
7 adequacy shortfall will occur, including whether there will be
8 sufficient in-state capacity to meet the zonal requirements of
9 MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
10 regional transmission organizations, or that the regional
11 transmission operators determine that a reliability violation
12 will occur during the time frame the study is evaluating, then
13 the Illinois Power Agency, in conjunction with the
14 Environmental Protection Agency shall develop a plan to reduce
15 or delay CO2e and copollutant emissions reductions
16 requirements only to the extent and for the duration necessary
17 to meet the resource adequacy and reliability needs of the
18 State, including allowing any plants whose emission reduction
19 deadline has been identified in the plan as creating a
20 reliability concern to continue operating, including operating
21 with reduced emissions or as emergency backup where
22 appropriate. The plan shall also consider the use of renewable
23 energy, energy storage, demand response, transmission
24 development, or other strategies to resolve the identified
25 resource adequacy shortfall or reliability violation.
26 (1) In developing the plan, the Environmental
HB1700 Enrolled - 854 - LRB104 08228 SPS 18278 b
1 Protection Agency and the Illinois Power Agency shall hold
2 at least one workshop open to, and accessible at a time and
3 place convenient to, the public and shall consider any
4 comments made by stakeholders or the public. Upon
5 development of the plan, copies of the plan shall be
6 posted and made publicly available on the Environmental
7 Protection Agency's, the Illinois Power Agency's, and the
8 Illinois Commerce Commission's websites. All interested
9 parties shall have 60 days following the date of posting
10 to provide comment to the Environmental Protection Agency
11 and the Illinois Power Agency on the plan. All comments
12 submitted to the Environmental Protection Agency and the
13 Illinois Power Agency shall be encouraged to be specific,
14 supported by data or other detailed analyses, and, if
15 objecting to all or a portion of the plan, accompanied by
16 specific alternative wording or proposals. All comments
17 shall be posted on the Environmental Protection Agency's,
18 the Illinois Power Agency's, and the Illinois Commerce
19 Commission's websites. Within 30 days following the end of
20 the 60-day review period, the Environmental Protection
21 Agency and the Illinois Power Agency shall revise the plan
22 as necessary based on the comments received and file its
23 revised plan with the Illinois Commerce Commission for
24 approval.
25 (2) Within 60 days after the filing of the revised
26 plan at the Illinois Commerce Commission, any person
HB1700 Enrolled - 855 - LRB104 08228 SPS 18278 b
1 objecting to the plan shall file an objection with the
2 Illinois Commerce Commission. Within 30 days after the
3 expiration of the comment period, the Illinois Commerce
4 Commission shall determine whether an evidentiary hearing
5 is necessary. The Illinois Commerce Commission shall also
6 host 3 public hearings within 90 days after the plan is
7 filed. Following the evidentiary and public hearings, the
8 Illinois Commerce Commission shall enter its order
9 approving or approving with modifications the reliability
10 mitigation plan within 180 days.
11 (3) The Illinois Commerce Commission shall only
12 approve the plan if the Illinois Commerce Commission
13 determines that it will resolve the resource adequacy or
14 reliability deficiency identified in the reliability
15 mitigation plan at the least amount of CO2e and copollutant
16 emissions, taking into consideration the emissions impacts
17 on environmental justice communities, and that it will
18 ensure adequate, reliable, affordable, efficient, and
19 environmentally sustainable electric service at the lowest
20 total cost over time, taking into account the impact of
21 increases in emissions.
22 (4) If the resource adequacy or reliability deficiency
23 identified in the reliability mitigation plan is resolved
24 or reduced, the Environmental Protection Agency and the
25 Illinois Power Agency may file an amended plan adjusting
26 the reduction or delay in CO2e and copollutant emission
HB1700 Enrolled - 856 - LRB104 08228 SPS 18278 b
1 reduction requirements identified in the plan.
2 (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
3 (Text of Section after amendment by P.A. 104-458)
4 Sec. 9.15. Greenhouse gases.
5 (a) An air pollution construction permit shall not be
6 required due to emissions of greenhouse gases if the
7 equipment, site, or source is not subject to regulation, as
8 defined by 40 CFR 52.21, as now or hereafter amended, for
9 greenhouse gases or is otherwise not addressed in this Section
10 or by the Board in regulations for greenhouse gases. These
11 exemptions do not relieve an owner or operator from the
12 obligation to comply with other applicable rules or
13 regulations.
14 (b) An air pollution operating permit shall not be
15 required due to emissions of greenhouse gases if the
16 equipment, site, or source is not subject to regulation, as
17 defined by Section 39.5 of this Act, for greenhouse gases or is
18 otherwise not addressed in this Section or by the Board in
19 regulations for greenhouse gases. These exemptions do not
20 relieve an owner or operator from the obligation to comply
21 with other applicable rules or regulations.
22 (c) (Blank).
23 (d) (Blank).
24 (e) (Blank).
25 (f) As used in this Section:
HB1700 Enrolled - 857 - LRB104 08228 SPS 18278 b
1 "Carbon dioxide emission" means the plant annual CO2 total
2 output emission as measured by the United States Environmental
3 Protection Agency in its Emissions & Generation Resource
4 Integrated Database (eGrid), or its successor.
5 "Carbon dioxide equivalent emissions" or "CO2e" means the
6 sum total of the mass amount of emissions in tons per year,
7 calculated by multiplying the mass amount of each of the 6
8 greenhouse gases specified in Section 3.207, in tons per year,
9 by its associated global warming potential as set forth in 40
10 CFR 98, subpart A, table A-1 or its successor, and then adding
11 them all together.
12 "Cogeneration" or "combined heat and power" refers to any
13 system that, either simultaneously or sequentially, produces
14 electricity and useful thermal energy from a single fuel
15 source.
16 "Copollutants" refers to the 6 criteria pollutants that
17 have been identified by the United States Environmental
18 Protection Agency pursuant to the Clean Air Act.
19 "Electric generating unit" or "EGU" means a fossil
20 fuel-fired stationary boiler, combustion turbine, or combined
21 cycle system that serves a generator that has a nameplate
22 capacity greater than 25 MWe and produces electricity for
23 sale.
24 "Environmental justice community" means the definition of
25 that term based on existing methodologies and findings, used
26 and as may be updated by the Illinois Power Agency and its
HB1700 Enrolled - 858 - LRB104 08228 SPS 18278 b
1 program administrator in the Illinois Solar for All Program.
2 "Equity investment eligible community" or "eligible
3 community" means the geographic areas throughout Illinois that
4 would most benefit from equitable investments by the State
5 designed to combat discrimination and foster sustainable
6 economic growth. Specifically, eligible community means the
7 following areas:
8 (1) areas where residents have been historically
9 excluded from economic opportunities, including
10 opportunities in the energy sector, as defined as R3 areas
11 pursuant to Section 10-40 of the Cannabis Regulation and
12 Tax Act; and
13 (2) areas where residents have been historically
14 subject to disproportionate burdens of pollution,
15 including pollution from the energy sector, as established
16 by environmental justice communities as defined by the
17 Illinois Power Agency pursuant to the Illinois Power
18 Agency Act, excluding any racial or ethnic indicators.
19 "Equity investment eligible person" or "eligible person"
20 means the persons who would most benefit from equitable
21 investments by the State designed to combat discrimination and
22 foster sustainable economic growth. Specifically, eligible
23 person means the following people:
24 (1) persons whose primary residence is in an equity
25 investment eligible community;
26 (2) persons whose primary residence is in a
HB1700 Enrolled - 859 - LRB104 08228 SPS 18278 b
1 municipality, or a county with a population under 100,000,
2 where the closure of an electric generating unit or mine
3 has been publicly announced or the electric generating
4 unit or mine is in the process of closing or closed within
5 the last 5 years;
6 (3) persons who are graduates of or currently enrolled
7 in the foster care system; or
8 (4) persons who were formerly incarcerated.
9 "Existing emissions" means:
10 (1) for CO2e, the total average tons-per-year of CO2e
11 emitted by the EGU or large GHG-emitting unit either in
12 the years 2018 through 2020 or, if the unit was not yet in
13 operation by January 1, 2018, in the first 3 full years of
14 that unit's operation; and
15 (2) for any copollutant, the total average
16 tons-per-year of that copollutant emitted by the EGU or
17 large GHG-emitting unit either in the years 2018 through
18 2020 or, if the unit was not yet in operation by January 1,
19 2018, in the first 3 full years of that unit's operation.
20 "Green hydrogen" means a power plant technology in which
21 an EGU creates electric power exclusively from electrolytic
22 hydrogen, in a manner that produces zero carbon and
23 copollutant emissions, using hydrogen fuel that is
24 electrolyzed using a 100% renewable zero carbon emission
25 energy source.
26 "Large greenhouse gas-emitting unit" or "large
HB1700 Enrolled - 860 - LRB104 08228 SPS 18278 b
1 GHG-emitting unit" means a unit that is an electric generating
2 unit or other fossil fuel-fired unit that itself has a
3 nameplate capacity or serves a generator that has a nameplate
4 capacity greater than 25 MWe and that produces electricity,
5 including, but not limited to, coal-fired, coal-derived,
6 oil-fired, natural gas-fired, and cogeneration units.
7 "NOx emission rate" means the plant annual NOx total output
8 emission rate as measured by the United States Environmental
9 Protection Agency in its Emissions & Generation Resource
10 Integrated Database (eGrid), or its successor, in the most
11 recent year for which data is available.
12 "Public greenhouse gas-emitting units" or "public
13 GHG-emitting unit" means large greenhouse gas-emitting units,
14 including EGUs, that are wholly owned, directly or indirectly,
15 by one or more municipalities, municipal corporations, joint
16 municipal electric power agencies, electric cooperatives, or
17 other governmental or nonprofit entities, whether organized
18 and created under the laws of Illinois or another state.
19 "SO2 emission rate" means the "plant annual SO2 total
20 output emission rate" as measured by the United States
21 Environmental Protection Agency in its Emissions & Generation
22 Resource Integrated Database (eGrid), or its successor, in the
23 most recent year for which data is available.
24 (g) All EGUs and large greenhouse gas-emitting units that
25 use coal or oil as a fuel and are not public GHG-emitting units
26 shall permanently reduce all CO2e and copollutant emissions to
HB1700 Enrolled - 861 - LRB104 08228 SPS 18278 b
1 zero no later than January 1, 2030.
2 (h) All EGUs and large greenhouse gas-emitting units that
3 use coal as a fuel and are public GHG-emitting units shall
4 permanently reduce CO2e emissions to zero no later than
5 December 31, 2045. Any source or plant with such units must
6 also reduce their CO2e emissions by 45% from existing
7 emissions by no later than January 1, 2035. If the emissions
8 reduction requirement is not achieved by December 31, 2035,
9 the plant shall retire one or more units or otherwise reduce
10 its CO2e emissions by 45% from existing emissions by June 30,
11 2038.
12 (i) All EGUs and large greenhouse gas-emitting units that
13 use gas as a fuel and are not public GHG-emitting units shall
14 permanently reduce all CO2e and copollutant emissions to zero,
15 including through unit retirement or the use of 100% green
16 hydrogen or other similar technology that is commercially
17 proven to achieve zero carbon emissions, according to the
18 following:
19 (1) No later than January 1, 2030: all EGUs and large
20 greenhouse gas-emitting units that have a NOx emissions
21 rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
22 greater than 0.006 lb/MWh, and are located in or within 3
23 miles of an environmental justice community designated as
24 of January 1, 2021 or an equity investment eligible
25 community.
26 (2) No later than January 1, 2040: all EGUs and large
HB1700 Enrolled - 862 - LRB104 08228 SPS 18278 b
1 greenhouse gas-emitting units that have a NOx emission
2 rate of greater than 0.12 lbs/MWh or a SO2 emission rate
3 greater than 0.006 lb/MWh, and are not located in or
4 within 3 miles of an environmental justice community
5 designated as of January 1, 2021 or an equity investment
6 eligible community. After January 1, 2035, each such EGU
7 and large greenhouse gas-emitting unit shall reduce its
8 CO2e emissions by at least 50% from its existing emissions
9 for CO2e, and shall be limited in operation to, on average,
10 6 hours or less per day, measured over a calendar year, and
11 shall not run for more than 24 consecutive hours except in
12 emergency conditions, as designated by a Regional
13 Transmission Organization or Independent System Operator.
14 (3) No later than January 1, 2035: all EGUs and large
15 greenhouse gas-emitting units that began operation prior
16 to the effective date of this amendatory Act of the 102nd
17 General Assembly and have a NOx emission rate of less than
18 or equal to 0.12 lb/MWh and a SO2 emission rate less than
19 or equal to 0.006 lb/MWh, and are located in or within 3
20 miles of an environmental justice community designated as
21 of January 1, 2021 or an equity investment eligible
22 community. Each such EGU and large greenhouse gas-emitting
23 unit shall reduce its CO2e emissions by at least 50% from
24 its existing emissions for CO2e no later than January 1,
25 2030.
26 (4) No later than January 1, 2040: All remaining EGUs
HB1700 Enrolled - 863 - LRB104 08228 SPS 18278 b
1 and large greenhouse gas-emitting units that have a heat
2 rate greater than or equal to 7000 BTU/kWh. Each such EGU
3 and Large greenhouse gas-emitting unit shall reduce its
4 CO2e emissions by at least 50% from its existing emissions
5 for CO2e no later than January 1, 2035.
6 (5) No later than January 1, 2045: all remaining EGUs
7 and large greenhouse gas-emitting units.
8 (j) All EGUs and large greenhouse gas-emitting units that
9 use gas as a fuel and are public GHG-emitting units shall
10 permanently reduce all CO2e and copollutant emissions to zero,
11 including through unit retirement or the use of 100% green
12 hydrogen or other similar technology that is commercially
13 proven to achieve zero carbon emissions by January 1, 2045.
14 (k) All EGUs and large greenhouse gas-emitting units that
15 utilize combined heat and power or cogeneration technology
16 shall permanently reduce all CO2e and copollutant emissions to
17 zero, including through unit retirement or the use of 100%
18 green hydrogen or other similar technology that is
19 commercially proven to achieve zero carbon emissions by
20 January 1, 2045.
21 (k-5) No EGU or large greenhouse gas-emitting unit that
22 uses gas as a fuel and is not a public GHG-emitting unit may
23 emit, in any 12-month period, CO2e or copollutants in excess of
24 that unit's existing emissions for those pollutants.
25 (l) Notwithstanding subsections (g) through (k-5), large
26 GHG-emitting units including EGUs may temporarily continue
HB1700 Enrolled - 864 - LRB104 08228 SPS 18278 b
1 emitting CO2e and copollutants after any applicable deadline
2 specified in any of subsections (g) through (k-5) if it has
3 been determined, as described in paragraphs (1) and (2) of
4 this subsection, that ongoing operation of the EGU is
5 necessary to maintain power grid supply and reliability or
6 ongoing operation of large GHG-emitting unit that is not an
7 EGU is necessary to serve as an emergency backup to
8 operations. Up to and including the occurrence of an emission
9 reduction deadline under subsection (i), all EGUs and large
10 GHG-emitting units must comply with the following terms:
11 (1) if an EGU or large GHG-emitting unit that is a
12 participant in a regional transmission organization
13 intends to retire, it must submit documentation to the
14 appropriate regional transmission organization by the
15 appropriate deadline that meets all applicable regulatory
16 requirements necessary to obtain approval to permanently
17 cease operating the large GHG-emitting unit;
18 (2) if any EGU or large GHG-emitting unit that is a
19 participant in a regional transmission organization
20 receives notice that the regional transmission
21 organization has determined that continued operation of
22 the unit is required, the unit may continue operating
23 until the issue identified by the regional transmission
24 organization is resolved. The owner or operator of the
25 unit must cooperate with the regional transmission
26 organization in resolving the issue and must reduce its
HB1700 Enrolled - 865 - LRB104 08228 SPS 18278 b
1 emissions to zero, consistent with the requirements under
2 subsection (g), (h), (i), (j), (k), or (k-5), as
3 applicable, as soon as practicable when the issue
4 identified by the regional transmission organization is
5 resolved; and
6 (3) any large GHG-emitting unit that is not a
7 participant in a regional transmission organization shall
8 be allowed to continue emitting CO2e and copollutants
9 after the zero-emission date specified in subsection (g),
10 (h), (i), (j), (k), or (k-5), as applicable, in the
11 capacity of an emergency backup unit if approved by the
12 Illinois Commerce Commission.
13 (m) No variance, adjusted standard, or other regulatory
14 relief otherwise available in this Act may be granted to the
15 emissions reduction and elimination obligations in this
16 Section.
17 (n) By June 30 of each year, beginning in 2025, the Agency
18 shall prepare and publish on its website a report setting
19 forth the actual greenhouse gas emissions from individual
20 units and the aggregate statewide emissions from all units for
21 the prior year.
22 (o) The Environmental Protection Agency, Illinois Power
23 Agency, and Illinois Commerce Commission shall jointly
24 prepare, and release publicly, a report to the General
25 Assembly that examines the State's current progress toward its
26 renewable energy resource development goals, the status of
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1 CO2e and copollutant emissions reductions, the current status
2 and progress toward developing and implementing green hydrogen
3 technologies, the current and projected status of electric
4 resource adequacy and reliability throughout the State for the
5 period beginning 5 years ahead, and proposed solutions for any
6 findings. The Environmental Protection Agency, Illinois Power
7 Agency, and Illinois Commerce Commission shall consult PJM
8 Interconnection, LLC and Midcontinent Independent System
9 Operator, Inc., or their respective successor organizations
10 regarding forecasted resource adequacy and reliability needs,
11 anticipated new generation interconnection, new transmission
12 development or upgrades, and any announced large GHG-emitting
13 unit closure dates and include this information in the report.
14 The report shall be released publicly by no later than
15 December 15 of the year it is prepared. If the Environmental
16 Protection Agency, Illinois Power Agency, and Illinois
17 Commerce Commission jointly conclude in the report that the
18 data from the regional grid operators, the pace of renewable
19 energy development, the pace of development of energy storage
20 and demand response utilization, transmission capacity, and
21 the CO2e and copollutant emissions reductions required by
22 subsection (i) or (k-5) reasonably demonstrate that a resource
23 adequacy shortfall will occur, including whether there will be
24 sufficient in-state capacity to meet the zonal requirements of
25 MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
26 regional transmission organizations, or that the regional
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1 transmission operators determine that a reliability violation
2 will occur during the time frame the study is evaluating, then
3 the Illinois Power Agency, in conjunction with the
4 Environmental Protection Agency shall develop a plan to reduce
5 or delay CO2e and copollutant emissions reductions
6 requirements only to the extent and for the duration necessary
7 to meet the resource adequacy and reliability needs of the
8 State, including allowing any plants whose emission reduction
9 deadline has been identified in the plan as creating a
10 reliability concern to continue operating, including operating
11 with reduced emissions or as emergency backup where
12 appropriate. The plan shall also consider the use of renewable
13 energy, energy storage, demand response, transmission
14 development, or other strategies to resolve the identified
15 resource adequacy shortfall or reliability violation.
16 (1) In developing the plan, the Environmental
17 Protection Agency and the Illinois Power Agency shall hold
18 at least one workshop open to, and accessible at a time and
19 place convenient to, the public and shall consider any
20 comments made by stakeholders or the public. Upon
21 development of the plan, copies of the plan shall be
22 posted and made publicly available on the Environmental
23 Protection Agency's, the Illinois Power Agency's, and the
24 Illinois Commerce Commission's websites. All interested
25 parties shall have 60 days following the date of posting
26 to provide comment to the Environmental Protection Agency
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1 and the Illinois Power Agency on the plan. All comments
2 submitted to the Environmental Protection Agency and the
3 Illinois Power Agency shall be encouraged to be specific,
4 supported by data or other detailed analyses, and, if
5 objecting to all or a portion of the plan, accompanied by
6 specific alternative wording or proposals. All comments
7 shall be posted on the Environmental Protection Agency's,
8 the Illinois Power Agency's, and the Illinois Commerce
9 Commission's websites. Within 30 days following the end of
10 the 60-day review period, the Environmental Protection
11 Agency and the Illinois Power Agency shall revise the plan
12 as necessary based on the comments received and file its
13 revised plan with the Illinois Commerce Commission for
14 approval.
15 (2) Within 60 days after the filing of the revised
16 plan at the Illinois Commerce Commission, any person
17 objecting to the plan shall file an objection with the
18 Illinois Commerce Commission. Within 30 days after the
19 expiration of the comment period, the Illinois Commerce
20 Commission shall determine whether an evidentiary hearing
21 is necessary. The Illinois Commerce Commission shall also
22 host 3 public hearings within 90 days after the plan is
23 filed. Following the evidentiary and public hearings, the
24 Illinois Commerce Commission shall enter its order
25 approving or approving with modifications the reliability
26 mitigation plan within 180 days. The Illinois Commerce
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1 Commission may extend the period of review of the revised
2 plan for no more than an additional 180 days.
3 (3) The Illinois Commerce Commission shall only
4 approve the plan if the Illinois Commerce Commission
5 determines that it will resolve the resource adequacy or
6 reliability deficiency identified in the reliability
7 mitigation plan at the least amount of CO2e and copollutant
8 emissions, taking into consideration the emissions impacts
9 on environmental justice communities, and that it will
10 ensure adequate, reliable, affordable, efficient, and
11 environmentally sustainable electric service at the lowest
12 total cost over time, taking into account the impact of
13 increases in emissions.
14 (4) If the resource adequacy or reliability deficiency
15 identified in the reliability mitigation plan is resolved
16 or reduced, the Environmental Protection Agency and the
17 Illinois Power Agency may file an amended plan adjusting
18 the reduction or delay in CO2e and copollutant emission
19 reduction requirements identified in the plan.
20 (Source: P.A. 104-458, eff. 6-1-26.)
21 Section 95. No acceleration or delay. Where this Act makes
22 changes in a statute that is represented in this Act by text
23 that is not yet or no longer in effect (for example, a Section
24 represented by multiple versions), the use of that text does
25 not accelerate or delay the taking effect of (i) the changes
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1 made by this Act or (ii) provisions derived from any other
2 Public Act.
3 Section 99. Effective date. This Act takes effect June 1,
4 2026.Every fact on this page links to its source, starting with the official bill record.