Bill Amendment: IL HB4236 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: UTILITIES-SOURCING AGREEMENTS
Status: 2019-01-08 - Session Sine Die [HB4236 Detail]
Download: Illinois-2017-HB4236-House_Amendment_002.html
Bill Title: UTILITIES-SOURCING AGREEMENTS
Status: 2019-01-08 - Session Sine Die [HB4236 Detail]
Download: Illinois-2017-HB4236-House_Amendment_002.html
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1 | AMENDMENT TO HOUSE BILL 4236
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2 | AMENDMENT NO. ______. Amend House Bill 4236, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Illinois Power Agency Act is amended by | ||||||
6 | changing Section 1-75 as follows:
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7 | (20 ILCS 3855/1-75) | ||||||
8 | Sec. 1-75. Planning and Procurement Bureau. The Planning | ||||||
9 | and Procurement Bureau has the following duties and | ||||||
10 | responsibilities: | ||||||
11 | (a) The Planning and Procurement Bureau shall each year, | ||||||
12 | beginning in 2008, develop procurement plans and conduct | ||||||
13 | competitive procurement processes in accordance with the | ||||||
14 | requirements of Section 16-111.5 of the Public Utilities Act | ||||||
15 | for the eligible retail customers of electric utilities that on | ||||||
16 | December 31, 2005 provided electric service to at least 100,000 |
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1 | customers in Illinois. Beginning with the delivery year | ||||||
2 | commencing on June 1, 2017, the Planning and Procurement Bureau | ||||||
3 | shall develop plans and processes for the procurement of zero | ||||||
4 | emission credits from zero emission facilities in accordance | ||||||
5 | with the requirements of subsection (d-5) of this Section. The | ||||||
6 | Planning and Procurement Bureau shall also develop procurement | ||||||
7 | plans and conduct competitive procurement processes in | ||||||
8 | accordance with the requirements of Section 16-111.5 of the | ||||||
9 | Public Utilities Act for the eligible retail customers of small | ||||||
10 | multi-jurisdictional electric utilities that (i) on December | ||||||
11 | 31, 2005 served less than 100,000 customers in Illinois and | ||||||
12 | (ii) request a procurement plan for their Illinois | ||||||
13 | jurisdictional load. This Section shall not apply to a small | ||||||
14 | multi-jurisdictional utility until such time as a small | ||||||
15 | multi-jurisdictional utility requests the Agency to prepare a | ||||||
16 | procurement plan for their Illinois jurisdictional load. For | ||||||
17 | the purposes of this Section, the term "eligible retail | ||||||
18 | customers" has the same definition as found in Section | ||||||
19 | 16-111.5(a) of the Public Utilities Act. | ||||||
20 | Beginning with the plan or plans to be implemented in the | ||||||
21 | 2017 delivery year, the Agency shall no longer include the | ||||||
22 | procurement of renewable energy resources in the annual | ||||||
23 | procurement plans required by this subsection (a), except as | ||||||
24 | provided in subsection (q) of Section 16-111.5 of the Public | ||||||
25 | Utilities Act, and shall instead develop a long-term renewable | ||||||
26 | resources procurement plan in accordance with subsection (c) of |
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1 | this Section and Section 16-111.5 of the Public Utilities Act. | ||||||
2 | (1) The Agency shall each year, beginning in 2008, as | ||||||
3 | needed, issue a request for qualifications for experts or | ||||||
4 | expert consulting firms to develop the procurement plans 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 assembling | ||||||
9 | large-scale power supply plans or portfolios for | ||||||
10 | end-use customers; | ||||||
11 | (B) an advanced degree in economics, mathematics, | ||||||
12 | engineering, risk management, or a related area of | ||||||
13 | study; | ||||||
14 | (C) 10 years of experience in the electricity | ||||||
15 | sector, including managing supply risk; | ||||||
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 protocols and familiarity | ||||||
21 | with contract protocols; | ||||||
22 | (F) adequate resources to perform and fulfill the | ||||||
23 | required functions and responsibilities; and | ||||||
24 | (G) the absence of a conflict of interest and | ||||||
25 | inappropriate bias for or against potential bidders or | ||||||
26 | the affected electric utilities. |
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1 | (2) The Agency shall each year, as needed, issue a | ||||||
2 | request for qualifications for a procurement administrator | ||||||
3 | to conduct the competitive procurement processes in | ||||||
4 | accordance with Section 16-111.5 of the Public Utilities | ||||||
5 | Act. In order to qualify an expert or expert consulting | ||||||
6 | firm must have: | ||||||
7 | (A) direct previous experience administering a | ||||||
8 | large-scale competitive procurement process; | ||||||
9 | (B) an advanced degree in economics, mathematics, | ||||||
10 | engineering, or a related area of study; | ||||||
11 | (C) 10 years of experience in the electricity | ||||||
12 | sector, including risk management experience; | ||||||
13 | (D) expertise in wholesale electricity market | ||||||
14 | rules, including those established by the Federal | ||||||
15 | Energy Regulatory Commission and regional transmission | ||||||
16 | organizations; | ||||||
17 | (E) expertise in credit and contract protocols; | ||||||
18 | (F) adequate resources to perform and fulfill the | ||||||
19 | required functions and responsibilities; and | ||||||
20 | (G) the absence of a conflict of interest and | ||||||
21 | inappropriate bias for or against potential bidders or | ||||||
22 | the affected electric utilities. | ||||||
23 | (3) The Agency shall provide affected utilities and | ||||||
24 | other interested parties with the lists of qualified | ||||||
25 | experts or expert consulting firms identified through the | ||||||
26 | request for qualifications processes that are under |
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1 | consideration to develop the procurement plans and to serve | ||||||
2 | as the procurement administrator. The Agency shall also | ||||||
3 | provide each qualified expert's or expert consulting | ||||||
4 | firm's response to the request for qualifications. All | ||||||
5 | information provided under this subparagraph shall also be | ||||||
6 | provided to the Commission. The Agency may provide by rule | ||||||
7 | for fees associated with supplying the information to | ||||||
8 | utilities and other interested parties. These parties | ||||||
9 | shall, within 5 business days, notify the Agency in writing | ||||||
10 | if they object to any experts or expert consulting firms on | ||||||
11 | the lists. Objections shall be based on: | ||||||
12 | (A) failure to satisfy qualification criteria; | ||||||
13 | (B) identification of a conflict of interest; or | ||||||
14 | (C) evidence of inappropriate bias for or against | ||||||
15 | potential bidders or the affected utilities. | ||||||
16 | The Agency shall remove experts or expert consulting | ||||||
17 | firms from the lists within 10 days if there is a | ||||||
18 | reasonable basis for an objection and provide the updated | ||||||
19 | lists to the affected utilities and other interested | ||||||
20 | parties. If the Agency fails to remove an expert or expert | ||||||
21 | consulting firm from a list, an objecting party may seek | ||||||
22 | review by the Commission within 5 days thereafter by filing | ||||||
23 | a petition, and the Commission shall render a ruling on the | ||||||
24 | petition within 10 days. There is no right of appeal of the | ||||||
25 | Commission's ruling. | ||||||
26 | (4) The Agency shall issue requests for proposals to |
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1 | the qualified experts or expert consulting firms to develop | ||||||
2 | a procurement plan for the affected utilities and to serve | ||||||
3 | as procurement administrator. | ||||||
4 | (5) The Agency shall select an expert or expert | ||||||
5 | consulting firm to develop procurement plans based on the | ||||||
6 | proposals submitted and shall award contracts of up to 5 | ||||||
7 | years to those selected. | ||||||
8 | (6) The Agency shall select an expert or expert | ||||||
9 | consulting firm, with approval of the Commission, to serve | ||||||
10 | as procurement administrator based on the proposals | ||||||
11 | submitted. If the Commission rejects, within 5 days, the | ||||||
12 | Agency's selection, the Agency shall submit another | ||||||
13 | recommendation within 3 days based on the proposals | ||||||
14 | submitted. The Agency shall award a 5-year contract to the | ||||||
15 | expert or expert consulting firm so selected with | ||||||
16 | Commission approval. | ||||||
17 | (b) The experts or expert consulting firms retained by the | ||||||
18 | Agency shall, as appropriate, prepare procurement plans, and | ||||||
19 | conduct a competitive procurement process as prescribed in | ||||||
20 | Section 16-111.5 of the Public Utilities Act, to ensure | ||||||
21 | adequate, reliable, affordable, efficient, and environmentally | ||||||
22 | sustainable electric service at the lowest total cost over | ||||||
23 | time, taking into account any benefits of price stability, for | ||||||
24 | eligible retail customers of electric utilities that on | ||||||
25 | December 31, 2005 provided electric service to at least 100,000 | ||||||
26 | customers in the State of Illinois, and for eligible Illinois |
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1 | retail customers of small multi-jurisdictional electric | ||||||
2 | utilities that (i) on December 31, 2005 served less than | ||||||
3 | 100,000 customers in Illinois and (ii) request a procurement | ||||||
4 | plan for their Illinois jurisdictional load. | ||||||
5 | (c) Renewable portfolio standard. | ||||||
6 | (1)(A) The Agency shall develop a long-term renewable | ||||||
7 | resources procurement plan that shall include procurement | ||||||
8 | programs and competitive procurement events necessary to | ||||||
9 | meet the goals set forth in this subsection (c). The | ||||||
10 | initial long-term renewable resources procurement plan | ||||||
11 | shall be released for comment no later than 160 days after | ||||||
12 | June 1, 2017 ( the effective date of Public Act 99-906) this | ||||||
13 | amendatory Act of the 99th General Assembly . The Agency | ||||||
14 | shall review, and may revise on an expedited basis, the | ||||||
15 | long-term renewable resources procurement plan at least | ||||||
16 | every 2 years, which shall be conducted in conjunction with | ||||||
17 | the procurement plan under Section 16-111.5 of the Public | ||||||
18 | Utilities Act to the extent practicable to minimize | ||||||
19 | administrative expense. The long-term renewable resources | ||||||
20 | procurement plans shall be subject to review and approval | ||||||
21 | by the Commission under Section 16-111.5 of the Public | ||||||
22 | Utilities Act. | ||||||
23 | (B) Subject to subparagraph (F) of this paragraph (1), | ||||||
24 | the long-term renewable resources procurement plan shall | ||||||
25 | include the goals for procurement of renewable energy | ||||||
26 | credits to meet at least the following overall percentages: |
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1 | 13% by the 2017 delivery year; increasing by at least 1.5% | ||||||
2 | each delivery year thereafter to at least 25% by the 2025 | ||||||
3 | delivery year; and continuing at no less than 25% for each | ||||||
4 | delivery year thereafter. In the event of a conflict | ||||||
5 | between these goals and the new wind and new photovoltaic | ||||||
6 | procurement requirements described in items (i) through | ||||||
7 | (iii) of subparagraph (C) of this paragraph (1), the | ||||||
8 | long-term plan shall prioritize compliance with the new | ||||||
9 | wind and new photovoltaic procurement requirements | ||||||
10 | described in items (i) through (iii) of subparagraph (C) of | ||||||
11 | this paragraph (1) over the annual percentage targets | ||||||
12 | described in this subparagraph (B). | ||||||
13 | For the delivery year beginning June 1, 2017, the | ||||||
14 | procurement plan shall include cost-effective renewable | ||||||
15 | energy resources equal to at least 13% of each utility's | ||||||
16 | load for eligible retail customers and 13% of the | ||||||
17 | applicable portion of each utility's load for retail | ||||||
18 | customers who are not eligible retail customers, which | ||||||
19 | applicable portion shall equal 50% of the utility's load | ||||||
20 | for retail customers who are not eligible retail customers | ||||||
21 | on February 28, 2017. | ||||||
22 | For the delivery year beginning June 1, 2018, the | ||||||
23 | procurement plan shall include cost-effective renewable | ||||||
24 | energy resources equal to at least 14.5% of each utility's | ||||||
25 | load for eligible retail customers and 14.5% of the | ||||||
26 | applicable portion of each utility's load for retail |
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1 | customers who are not eligible retail customers, which | ||||||
2 | applicable portion shall equal 75% of the utility's load | ||||||
3 | for retail customers who are not eligible retail customers | ||||||
4 | on February 28, 2017. | ||||||
5 | For the delivery year beginning June 1, 2019, and for | ||||||
6 | each year thereafter, the procurement plans shall include | ||||||
7 | cost-effective renewable energy resources equal to a | ||||||
8 | minimum percentage of each utility's load for all retail | ||||||
9 | customers as follows: 16% by June 1, 2019; increasing by | ||||||
10 | 1.5% each year thereafter to 25% by June 1, 2025; and 25% | ||||||
11 | by June 1, 2026 and each year thereafter. | ||||||
12 | For each delivery year, the Agency shall first | ||||||
13 | recognize each utility's obligations for that delivery | ||||||
14 | year under existing contracts. Any renewable energy | ||||||
15 | credits under existing contracts, including renewable | ||||||
16 | energy credits as part of renewable energy resources, shall | ||||||
17 | be used to meet the goals set forth in this subsection (c) | ||||||
18 | for the delivery year. | ||||||
19 | (C) Of the renewable energy credits procured under this | ||||||
20 | subsection (c), at least 75% shall come from wind and | ||||||
21 | photovoltaic projects. The long-term renewable resources | ||||||
22 | procurement plan described in subparagraph (A) of this | ||||||
23 | paragraph (1) shall include the procurement of renewable | ||||||
24 | energy credits in amounts equal to at least the following: | ||||||
25 | (i) By the end of the 2020 delivery year: | ||||||
26 | At least 2,000,000 renewable energy credits |
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1 | for each delivery year shall come from new wind | ||||||
2 | projects; and | ||||||
3 | At least 2,000,000 renewable energy credits | ||||||
4 | for each delivery year shall come from new | ||||||
5 | photovoltaic projects; of that amount, to the | ||||||
6 | extent possible, the Agency shall procure: at | ||||||
7 | least 50% from solar photovoltaic projects using | ||||||
8 | the program outlined in subparagraph (K) of this | ||||||
9 | paragraph (1) from distributed renewable energy | ||||||
10 | generation devices or community renewable | ||||||
11 | generation projects; at least 40% from | ||||||
12 | utility-scale solar projects; at least 2% from | ||||||
13 | brownfield site photovoltaic projects that are not | ||||||
14 | community renewable generation projects; and the | ||||||
15 | remainder shall be determined through the | ||||||
16 | long-term planning process described in | ||||||
17 | subparagraph (A) of this paragraph (1). | ||||||
18 | (ii) By the end of the 2025 delivery year: | ||||||
19 | At least 3,000,000 renewable energy credits | ||||||
20 | for each delivery year shall come from new wind | ||||||
21 | projects; and | ||||||
22 | At least 3,000,000 renewable energy credits | ||||||
23 | for each delivery year shall come from new | ||||||
24 | photovoltaic projects; of that amount, to the | ||||||
25 | extent possible, the Agency shall procure: at | ||||||
26 | least 50% from solar photovoltaic projects using |
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1 | the program outlined in subparagraph (K) of this | ||||||
2 | paragraph (1) from distributed renewable energy | ||||||
3 | devices or community renewable generation | ||||||
4 | projects; at least 40% from utility-scale solar | ||||||
5 | projects; at least 2% from brownfield site | ||||||
6 | photovoltaic projects that are not community | ||||||
7 | renewable generation projects; and the remainder | ||||||
8 | shall be determined through the long-term planning | ||||||
9 | process described in subparagraph (A) of this | ||||||
10 | paragraph (1). | ||||||
11 | (iii) By the end of the 2030 delivery year: | ||||||
12 | At least 4,000,000 renewable energy credits | ||||||
13 | for each delivery year shall come from new wind | ||||||
14 | projects; and | ||||||
15 | At least 4,000,000 renewable energy credits | ||||||
16 | for each delivery year shall come from new | ||||||
17 | photovoltaic projects; of that amount, to the | ||||||
18 | extent possible, the Agency shall procure: at | ||||||
19 | least 50% from solar photovoltaic projects using | ||||||
20 | the program outlined in subparagraph (K) of this | ||||||
21 | paragraph (1) from distributed renewable energy | ||||||
22 | devices or community renewable generation | ||||||
23 | projects; at least 40% from utility-scale solar | ||||||
24 | projects; at least 2% from brownfield site | ||||||
25 | photovoltaic projects that are not community | ||||||
26 | renewable generation projects; and the remainder |
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1 | shall be determined through the long-term planning | ||||||
2 | process described in subparagraph (A) of this | ||||||
3 | paragraph (1). | ||||||
4 | For purposes of this Section: | ||||||
5 | "New wind projects" means wind renewable | ||||||
6 | energy facilities that are energized after June 1, | ||||||
7 | 2017 for the delivery year commencing June 1, 2017 | ||||||
8 | or within 3 years after the date the Commission | ||||||
9 | approves contracts for subsequent delivery years. | ||||||
10 | "New photovoltaic projects" means photovoltaic | ||||||
11 | renewable energy facilities that are energized | ||||||
12 | after June 1, 2017. Photovoltaic projects | ||||||
13 | developed under Section 1-56 of this Act shall not | ||||||
14 | apply towards the new photovoltaic project | ||||||
15 | requirements in this subparagraph (C). | ||||||
16 | (D) Renewable energy credits shall be cost effective. | ||||||
17 | For purposes of this subsection (c), "cost effective" means | ||||||
18 | that the costs of procuring renewable energy resources do | ||||||
19 | not cause the limit stated in subparagraph (E) of this | ||||||
20 | paragraph (1) to be exceeded and, for renewable energy | ||||||
21 | credits procured through a competitive procurement event, | ||||||
22 | do not exceed benchmarks based on market prices for like | ||||||
23 | products in the region. For purposes of this subsection | ||||||
24 | (c), "like products" means contracts for renewable energy | ||||||
25 | credits from the same or substantially similar technology, | ||||||
26 | same or substantially similar vintage (new or existing), |
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1 | the same or substantially similar quantity, and the same or | ||||||
2 | substantially similar contract length and structure. | ||||||
3 | Benchmarks shall be developed by the procurement | ||||||
4 | administrator, in consultation with the Commission staff, | ||||||
5 | Agency staff, and the procurement monitor and shall be | ||||||
6 | subject to Commission review and approval. If price | ||||||
7 | benchmarks for like products in the region are not | ||||||
8 | available, the procurement administrator shall establish | ||||||
9 | price benchmarks based on publicly available data on | ||||||
10 | regional technology costs and expected current and future | ||||||
11 | regional energy prices. The benchmarks in this Section | ||||||
12 | shall not be used to curtail or otherwise reduce | ||||||
13 | contractual obligations entered into by or through the | ||||||
14 | Agency prior to June 1, 2017 ( the effective date of Public | ||||||
15 | Act 99-906) this amendatory Act of the 99th General | ||||||
16 | Assembly . | ||||||
17 | (E) For purposes of this subsection (c), the required | ||||||
18 | procurement of cost-effective renewable energy resources | ||||||
19 | for a particular year commencing prior to June 1, 2017 | ||||||
20 | shall be measured as a percentage of the actual amount of | ||||||
21 | electricity (megawatt-hours) supplied by the electric | ||||||
22 | utility to eligible retail customers in the delivery year | ||||||
23 | ending immediately prior to the procurement, and, for | ||||||
24 | delivery years commencing on and after June 1, 2017, the | ||||||
25 | required procurement of cost-effective renewable energy | ||||||
26 | resources for a particular year shall be measured as a |
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1 | percentage of the actual amount of electricity | ||||||
2 | (megawatt-hours) delivered by the electric utility in the | ||||||
3 | delivery year ending immediately prior to the procurement, | ||||||
4 | to all retail customers in its service territory. For | ||||||
5 | purposes of this subsection (c), the amount paid per | ||||||
6 | kilowatthour means the total amount paid for electric | ||||||
7 | service expressed on a per kilowatthour basis. For purposes | ||||||
8 | of this subsection (c), the total amount paid for electric | ||||||
9 | service includes without limitation amounts paid for | ||||||
10 | supply, transmission, distribution, surcharges, and add-on | ||||||
11 | taxes. | ||||||
12 | Notwithstanding the requirements of this subsection | ||||||
13 | (c), the total of renewable energy resources procured under | ||||||
14 | the procurement plan for any single year shall be subject | ||||||
15 | to the limitations of this subparagraph (E). Such | ||||||
16 | procurement shall be reduced for all retail customers based | ||||||
17 | on the amount necessary to limit the annual estimated | ||||||
18 | average net increase due to the costs of these resources | ||||||
19 | included in the amounts paid by eligible retail customers | ||||||
20 | in connection with electric service to no more than the | ||||||
21 | greater of 2.015% of the amount paid per kilowatthour by | ||||||
22 | those customers during the year ending May 31, 2007 or the | ||||||
23 | incremental amount per kilowatthour paid for these | ||||||
24 | resources in 2011. To arrive at a maximum dollar amount of | ||||||
25 | renewable energy resources to be procured for the | ||||||
26 | particular delivery year, the resulting per kilowatthour |
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1 | amount shall be applied to the actual amount of | ||||||
2 | kilowatthours of electricity delivered, or applicable | ||||||
3 | portion of such amount as specified in paragraph (1) of | ||||||
4 | this subsection (c), as applicable, by the electric utility | ||||||
5 | in the delivery year immediately prior to the procurement | ||||||
6 | to all retail customers in its service territory. The | ||||||
7 | calculations required by this subparagraph (E) shall be | ||||||
8 | made only once for each delivery year at the time that the | ||||||
9 | renewable energy resources are procured. Once the | ||||||
10 | determination as to the amount of renewable energy | ||||||
11 | resources to procure is made based on the calculations set | ||||||
12 | forth in this subparagraph (E) and the contracts procuring | ||||||
13 | those amounts are executed, no subsequent rate impact | ||||||
14 | determinations shall be made and no adjustments to those | ||||||
15 | contract amounts shall be allowed. All costs incurred under | ||||||
16 | such contracts shall be fully recoverable by the electric | ||||||
17 | utility as provided in this Section. | ||||||
18 | (F) If the limitation on the amount of renewable energy | ||||||
19 | resources procured in subparagraph (E) of this paragraph | ||||||
20 | (1) prevents the Agency from meeting all of the goals in | ||||||
21 | this subsection (c), the Agency's long-term plan shall | ||||||
22 | prioritize compliance with the requirements of this | ||||||
23 | subsection (c) regarding renewable energy credits in the | ||||||
24 | following order: | ||||||
25 | (i) renewable energy credits under existing | ||||||
26 | contractual obligations; |
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1 | (i-5) funding for the Illinois Solar for All | ||||||
2 | Program, as described in subparagraph (O) of this | ||||||
3 | paragraph (1); | ||||||
4 | (ii) renewable energy credits necessary to comply | ||||||
5 | with the new wind and new photovoltaic procurement | ||||||
6 | requirements described in items (i) through (iii) of | ||||||
7 | subparagraph (C) of this paragraph (1); and | ||||||
8 | (iii) renewable energy credits necessary to meet | ||||||
9 | the remaining requirements of this subsection (c). | ||||||
10 | (G) The following provisions shall apply to the | ||||||
11 | Agency's procurement of renewable energy credits under | ||||||
12 | this subsection (c): | ||||||
13 | (i) Notwithstanding whether a long-term renewable | ||||||
14 | resources procurement plan has been approved, the | ||||||
15 | Agency shall conduct an initial forward procurement | ||||||
16 | for renewable energy credits from new utility-scale | ||||||
17 | wind projects within 160 days after June 1, 2017 ( the | ||||||
18 | effective date of Public Act 99-906) this amendatory | ||||||
19 | Act of the 99th General Assembly . For the purposes of | ||||||
20 | this initial forward procurement, the Agency shall | ||||||
21 | solicit 15-year contracts for delivery of 1,000,000 | ||||||
22 | renewable energy credits delivered annually from new | ||||||
23 | utility-scale wind projects to begin delivery on June | ||||||
24 | 1, 2019, if available, but not later than June 1, 2021. | ||||||
25 | Payments to suppliers of renewable energy credits | ||||||
26 | shall commence upon delivery. Renewable energy credits |
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1 | procured under this initial procurement shall be | ||||||
2 | included in the Agency's long-term plan and shall apply | ||||||
3 | to all renewable energy goals in this subsection (c). | ||||||
4 | (ii) Notwithstanding whether a long-term renewable | ||||||
5 | resources procurement plan has been approved, the | ||||||
6 | Agency shall conduct an initial forward procurement | ||||||
7 | for renewable energy credits from new utility-scale | ||||||
8 | solar projects and brownfield site photovoltaic | ||||||
9 | projects within one year after June 1, 2017 ( the | ||||||
10 | effective date of Public Act 99-906) this amendatory | ||||||
11 | Act of the 99th General Assembly . For the purposes of | ||||||
12 | this initial forward procurement, the Agency shall | ||||||
13 | solicit 15-year contracts for delivery of 1,000,000 | ||||||
14 | renewable energy credits delivered annually from new | ||||||
15 | utility-scale solar projects and brownfield site | ||||||
16 | photovoltaic projects to begin delivery on June 1, | ||||||
17 | 2019, if available, but not later than June 1, 2021. | ||||||
18 | The Agency may structure this initial procurement in | ||||||
19 | one or more discrete procurement events. 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 | (iii) Subsequent forward procurements for | ||||||
26 | utility-scale wind projects shall solicit at least |
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1 | 1,000,000 renewable energy credits delivered annually | ||||||
2 | per procurement event and shall be planned, scheduled, | ||||||
3 | and designed such that the cumulative amount of | ||||||
4 | renewable energy credits delivered from all new wind | ||||||
5 | projects in each delivery year shall not exceed the | ||||||
6 | Agency's projection of the cumulative amount of | ||||||
7 | renewable energy credits that will be delivered from | ||||||
8 | all new photovoltaic projects, including utility-scale | ||||||
9 | and distributed photovoltaic devices, in the same | ||||||
10 | delivery year at the time scheduled for wind contract | ||||||
11 | delivery. | ||||||
12 | (iv) If, at any time after the time set for | ||||||
13 | delivery of renewable energy credits pursuant to the | ||||||
14 | initial procurements in items (i) and (ii) of this | ||||||
15 | subparagraph (G), the cumulative amount of renewable | ||||||
16 | energy credits projected to be delivered from all new | ||||||
17 | wind projects in a given delivery year exceeds the | ||||||
18 | cumulative amount of renewable energy credits | ||||||
19 | projected to be delivered from all new photovoltaic | ||||||
20 | projects in that delivery year by 200,000 or more | ||||||
21 | renewable energy credits, then the Agency shall within | ||||||
22 | 60 days adjust the procurement programs in the | ||||||
23 | long-term renewable resources procurement plan to | ||||||
24 | ensure that the projected cumulative amount of | ||||||
25 | renewable energy credits to be delivered from all new | ||||||
26 | wind projects does not exceed the projected cumulative |
| |||||||
| |||||||
1 | amount of renewable energy credits to be delivered from | ||||||
2 | all new photovoltaic projects by 200,000 or more | ||||||
3 | renewable energy credits, provided that nothing in | ||||||
4 | this Section shall preclude the projected cumulative | ||||||
5 | amount of renewable energy credits to be delivered from | ||||||
6 | all new photovoltaic projects from exceeding the | ||||||
7 | projected cumulative amount of renewable energy | ||||||
8 | credits to be delivered from all new wind projects in | ||||||
9 | each delivery year and provided further that nothing in | ||||||
10 | this item (iv) shall require the curtailment of an | ||||||
11 | executed contract. The Agency shall update, on a | ||||||
12 | quarterly basis, its projection of the renewable | ||||||
13 | energy credits to be delivered from all projects in | ||||||
14 | each delivery year. Notwithstanding anything to the | ||||||
15 | contrary, the Agency may adjust the timing of | ||||||
16 | procurement events conducted under this subparagraph | ||||||
17 | (G). The long-term renewable resources procurement | ||||||
18 | plan shall set forth the process by which the | ||||||
19 | adjustments may be made. | ||||||
20 | (v) All procurements under this subparagraph (G) | ||||||
21 | shall comply with the geographic requirements in | ||||||
22 | subparagraph (I) of this paragraph (1) and shall follow | ||||||
23 | the procurement processes and procedures described in | ||||||
24 | this Section and Section 16-111.5 of the Public | ||||||
25 | Utilities Act to the extent practicable, and these | ||||||
26 | processes and procedures may be expedited to |
| |||||||
| |||||||
1 | accommodate the schedule established by this | ||||||
2 | subparagraph (G). | ||||||
3 | (H) The procurement of renewable energy resources for a | ||||||
4 | given delivery year shall be reduced as described in this | ||||||
5 | subparagraph (H) if an alternative alternate retail | ||||||
6 | electric supplier meets the requirements described in this | ||||||
7 | subparagraph (H). | ||||||
8 | (i) Within 45 days after June 1, 2017 ( the | ||||||
9 | effective date of Public Act 99-906) this amendatory | ||||||
10 | Act of the 99th General Assembly , an alternative retail | ||||||
11 | electric supplier or its successor shall submit an | ||||||
12 | informational filing to the Illinois Commerce | ||||||
13 | Commission certifying that, as of December 31, 2015, | ||||||
14 | the alternative retail electric supplier owned one or | ||||||
15 | more electric generating facilities that generates | ||||||
16 | renewable energy resources as defined in Section 1-10 | ||||||
17 | of this Act, provided that such facilities are not | ||||||
18 | powered by wind or photovoltaics, and the facilities | ||||||
19 | generate one renewable energy credit for each | ||||||
20 | megawatthour of energy produced from the facility. | ||||||
21 | The informational filing shall identify each | ||||||
22 | facility that was eligible to satisfy the alternative | ||||||
23 | retail electric supplier's obligations under Section | ||||||
24 | 16-115D of the Public Utilities Act as described in | ||||||
25 | this item (i). | ||||||
26 | (ii) For a given delivery year, the alternative |
| |||||||
| |||||||
1 | retail electric supplier may elect to supply its retail | ||||||
2 | customers with renewable energy credits from the | ||||||
3 | facility or facilities described in item (i) of this | ||||||
4 | subparagraph (H) that continue to be owned by the | ||||||
5 | alternative retail electric supplier. | ||||||
6 | (iii) The alternative retail electric supplier | ||||||
7 | shall notify the Agency and the applicable utility, no | ||||||
8 | later than February 28 of the year preceding the | ||||||
9 | applicable delivery year or 15 days after June 1, 2017 | ||||||
10 | ( the effective date of Public Act 99-906) this | ||||||
11 | amendatory Act of the 99th General Assembly , whichever | ||||||
12 | is later, of its election under item (ii) of this | ||||||
13 | subparagraph (H) to supply renewable energy credits to | ||||||
14 | retail customers of the utility. Such election shall | ||||||
15 | identify the amount of renewable energy credits to be | ||||||
16 | supplied by the alternative retail electric supplier | ||||||
17 | to the utility's retail customers and the source of the | ||||||
18 | renewable energy credits identified in the | ||||||
19 | informational filing as described in item (i) of this | ||||||
20 | subparagraph (H), subject to the following | ||||||
21 | limitations: | ||||||
22 | For the delivery year beginning June 1, 2018, | ||||||
23 | the maximum amount of renewable energy credits to | ||||||
24 | be supplied by an alternative retail electric | ||||||
25 | supplier under this subparagraph (H) shall be 68% | ||||||
26 | multiplied by 25% multiplied by 14.5% multiplied |
| |||||||
| |||||||
1 | by the amount of metered electricity | ||||||
2 | (megawatt-hours) delivered by the alternative | ||||||
3 | retail electric supplier to Illinois retail | ||||||
4 | customers during the delivery year ending May 31, | ||||||
5 | 2016. | ||||||
6 | For delivery years beginning June 1, 2019 and | ||||||
7 | each year thereafter, the maximum amount of | ||||||
8 | renewable energy credits to be supplied by an | ||||||
9 | alternative retail electric supplier under this | ||||||
10 | subparagraph (H) shall be 68% multiplied by 50% | ||||||
11 | multiplied by 16% multiplied by the amount of | ||||||
12 | metered electricity (megawatt-hours) delivered by | ||||||
13 | the alternative retail electric supplier to | ||||||
14 | Illinois retail customers during the delivery year | ||||||
15 | ending May 31, 2016, provided that the 16% value | ||||||
16 | shall increase by 1.5% each delivery year | ||||||
17 | thereafter to 25% by the delivery year beginning | ||||||
18 | June 1, 2025, and thereafter the 25% value shall | ||||||
19 | apply to each delivery year. | ||||||
20 | For each delivery year, the total amount of | ||||||
21 | renewable energy credits supplied by all alternative | ||||||
22 | retail electric suppliers under this subparagraph (H) | ||||||
23 | shall not exceed 9% of the Illinois target renewable | ||||||
24 | energy credit quantity. The Illinois target renewable | ||||||
25 | energy credit quantity for the delivery year beginning | ||||||
26 | June 1, 2018 is 14.5% multiplied by the total amount of |
| |||||||
| |||||||
1 | metered electricity (megawatt-hours) delivered in the | ||||||
2 | delivery year immediately preceding that delivery | ||||||
3 | year, provided that the 14.5% shall increase by 1.5% | ||||||
4 | each delivery year thereafter to 25% by the delivery | ||||||
5 | year beginning June 1, 2025, and thereafter the 25% | ||||||
6 | value shall apply to each delivery year. | ||||||
7 | If the requirements set forth in items (i) through | ||||||
8 | (iii) of this subparagraph (H) are met, the charges | ||||||
9 | that would otherwise be applicable to the retail | ||||||
10 | customers of the alternative retail electric supplier | ||||||
11 | under paragraph (6) of this subsection (c) for the | ||||||
12 | applicable delivery year shall be reduced by the ratio | ||||||
13 | of the quantity of renewable energy credits supplied by | ||||||
14 | the alternative retail electric supplier compared to | ||||||
15 | that supplier's target renewable energy credit | ||||||
16 | quantity. The supplier's target renewable energy | ||||||
17 | credit quantity for the delivery year beginning June 1, | ||||||
18 | 2018 is 14.5% multiplied by the total amount of metered | ||||||
19 | electricity (megawatt-hours) delivered by the | ||||||
20 | alternative retail supplier in that delivery year, | ||||||
21 | provided that the 14.5% shall increase by 1.5% each | ||||||
22 | delivery year thereafter to 25% by the delivery year | ||||||
23 | beginning June 1, 2025, and thereafter the 25% value | ||||||
24 | shall apply to each delivery year. | ||||||
25 | On or before April 1 of each year, the Agency shall | ||||||
26 | annually publish a report on its website that |
| |||||||
| |||||||
1 | identifies the aggregate amount of renewable energy | ||||||
2 | credits supplied by alternative retail electric | ||||||
3 | suppliers under this subparagraph (H). | ||||||
4 | (I) The Agency shall design its long-term renewable | ||||||
5 | energy procurement plan to maximize the State's interest in | ||||||
6 | the health, safety, and welfare of its residents, including | ||||||
7 | but not limited to minimizing sulfur dioxide, nitrogen | ||||||
8 | oxide, particulate matter and other pollution that | ||||||
9 | adversely affects public health in this State, increasing | ||||||
10 | fuel and resource diversity in this State, enhancing the | ||||||
11 | reliability and resiliency of the electricity distribution | ||||||
12 | system in this State, meeting goals to limit carbon dioxide | ||||||
13 | emissions under federal or State law, and contributing to a | ||||||
14 | cleaner and healthier environment for the citizens of this | ||||||
15 | State. In order to further these legislative purposes, | ||||||
16 | renewable energy credits shall be eligible to be counted | ||||||
17 | toward the renewable energy requirements of this | ||||||
18 | subsection (c) if they are generated from facilities | ||||||
19 | located in this State. The Agency may qualify renewable | ||||||
20 | energy credits from facilities located in states adjacent | ||||||
21 | to Illinois if the generator demonstrates and the Agency | ||||||
22 | determines that the operation of such facility or | ||||||
23 | facilities will help promote the State's interest in the | ||||||
24 | health, safety, and welfare of its residents based on the | ||||||
25 | public interest criteria described above. To ensure that | ||||||
26 | the public interest criteria are applied to the procurement |
| |||||||
| |||||||
1 | and given full effect, the Agency's long-term procurement | ||||||
2 | plan shall describe in detail how each public interest | ||||||
3 | factor shall be considered and weighted for facilities | ||||||
4 | located in states adjacent to Illinois. | ||||||
5 | (J) In order to promote the competitive development of | ||||||
6 | renewable energy resources in furtherance of the State's | ||||||
7 | interest in the health, safety, and welfare of its | ||||||
8 | residents, renewable energy credits shall not be eligible | ||||||
9 | to be counted toward the renewable energy requirements of | ||||||
10 | this subsection (c) if they are sourced from a generating | ||||||
11 | unit whose costs were being recovered through rates | ||||||
12 | regulated by this State or any other state or states on or | ||||||
13 | after January 1, 2017. Each contract executed to purchase | ||||||
14 | renewable energy credits under this subsection (c) shall | ||||||
15 | provide for the contract's termination if the costs of the | ||||||
16 | generating unit supplying the renewable energy credits | ||||||
17 | subsequently begin to be recovered through rates regulated | ||||||
18 | by this State or any other state or states; and each | ||||||
19 | contract shall further provide that, in that event, the | ||||||
20 | supplier of the credits must return 110% of all payments | ||||||
21 | received under the contract. Amounts returned under the | ||||||
22 | requirements of this subparagraph (J) shall be retained by | ||||||
23 | the utility and all of these amounts shall be used for the | ||||||
24 | procurement of additional renewable energy credits from | ||||||
25 | new wind or new photovoltaic resources as defined in this | ||||||
26 | subsection (c). The long-term plan shall provide that these |
| |||||||
| |||||||
1 | renewable energy credits shall be procured in the next | ||||||
2 | procurement event. | ||||||
3 | Notwithstanding the limitations of this subparagraph | ||||||
4 | (J), renewable energy credits sourced from generating | ||||||
5 | units that are constructed, purchased, owned, or leased by | ||||||
6 | an electric utility as part of an approved project, | ||||||
7 | program, or pilot under Section 1-56 of this Act shall be | ||||||
8 | eligible to be counted toward the renewable energy | ||||||
9 | requirements of this subsection (c), regardless of how the | ||||||
10 | costs of these units are recovered. | ||||||
11 | (K) The long-term renewable resources procurement plan | ||||||
12 | developed by the Agency in accordance with subparagraph (A) | ||||||
13 | of this paragraph (1) shall include an Adjustable Block | ||||||
14 | program for the procurement of renewable energy credits | ||||||
15 | from new photovoltaic projects that are distributed | ||||||
16 | renewable energy generation devices or new photovoltaic | ||||||
17 | community renewable generation projects. The Adjustable | ||||||
18 | Block program shall be designed to provide a transparent | ||||||
19 | schedule of prices and quantities to enable the | ||||||
20 | photovoltaic market to scale up and for renewable energy | ||||||
21 | credit prices to adjust at a predictable rate over time. | ||||||
22 | The prices set by the Adjustable Block program can be | ||||||
23 | reflected as a set value or as the product of a formula. | ||||||
24 | The Adjustable Block program shall include for each | ||||||
25 | category of eligible projects: a schedule of standard block | ||||||
26 | purchase prices to be offered; a series of steps, with |
| |||||||
| |||||||
1 | associated nameplate capacity and purchase prices that | ||||||
2 | adjust from step to step; and automatic opening of the next | ||||||
3 | step as soon as the nameplate capacity and available | ||||||
4 | purchase prices for an open step are fully committed or | ||||||
5 | reserved. Only projects energized on or after June 1, 2017 | ||||||
6 | shall be eligible for the Adjustable Block program. For | ||||||
7 | each block group the Agency shall determine the number of | ||||||
8 | blocks, the amount of generation capacity in each block, | ||||||
9 | and the purchase price for each block, provided that the | ||||||
10 | purchase price provided and the total amount of generation | ||||||
11 | in all blocks for all block groups shall be sufficient to | ||||||
12 | meet the goals in this subsection (c). The Agency may | ||||||
13 | periodically review its prior decisions establishing the | ||||||
14 | number of blocks, the amount of generation capacity in each | ||||||
15 | block, and the purchase price for each block, and may | ||||||
16 | propose, on an expedited basis, changes to these previously | ||||||
17 | set values, including but not limited to redistributing | ||||||
18 | these amounts and the available funds as necessary and | ||||||
19 | appropriate, subject to Commission approval as part of the | ||||||
20 | periodic plan revision process described in Section | ||||||
21 | 16-111.5 of the Public Utilities Act. The Agency may define | ||||||
22 | different block sizes, purchase prices, or other distinct | ||||||
23 | terms and conditions for projects located in different | ||||||
24 | utility service territories if the Agency deems it | ||||||
25 | necessary to meet the goals in this subsection (c). | ||||||
26 | The Adjustable Block program shall include at least the |
| |||||||
| |||||||
1 | following block groups in at least the following amounts, | ||||||
2 | which may be adjusted upon review by the Agency and | ||||||
3 | approval by the Commission as described in this | ||||||
4 | subparagraph (K): | ||||||
5 | (i) At least 25% from distributed renewable energy | ||||||
6 | generation devices with a nameplate capacity of no more | ||||||
7 | than 10 kilowatts. | ||||||
8 | (ii) At least 25% from distributed renewable | ||||||
9 | energy generation devices with a nameplate capacity of | ||||||
10 | more than 10 kilowatts and no more than 2,000 | ||||||
11 | kilowatts. The Agency may create sub-categories within | ||||||
12 | this category to account for the differences between | ||||||
13 | projects for small commercial customers, large | ||||||
14 | commercial customers, and public or non-profit | ||||||
15 | customers. | ||||||
16 | (iii) At least 25% from photovoltaic community | ||||||
17 | renewable generation projects. | ||||||
18 | (iv) The remaining 25% shall be allocated as | ||||||
19 | specified by the Agency in the long-term renewable | ||||||
20 | resources procurement plan. | ||||||
21 | The Adjustable Block program shall be designed to | ||||||
22 | ensure that renewable energy credits are procured from | ||||||
23 | photovoltaic distributed renewable energy generation | ||||||
24 | devices and new photovoltaic community renewable energy | ||||||
25 | generation projects in diverse locations and are not | ||||||
26 | concentrated in a few geographic areas. |
| |||||||
| |||||||
1 | (L) The procurement of photovoltaic renewable energy | ||||||
2 | credits under items (i) through (iv) of subparagraph (K) of | ||||||
3 | this paragraph (1) shall be subject to the following | ||||||
4 | contract and payment terms: | ||||||
5 | (i) The Agency shall procure contracts of at least | ||||||
6 | 15 years in length. | ||||||
7 | (ii) For those renewable energy credits that | ||||||
8 | qualify and are procured under item (i) of subparagraph | ||||||
9 | (K) of this paragraph (1), the renewable energy credit | ||||||
10 | purchase price shall be paid in full by the contracting | ||||||
11 | utilities at the time that the facility producing the | ||||||
12 | renewable energy credits is interconnected at the | ||||||
13 | distribution system level of the utility and | ||||||
14 | energized. The electric utility shall receive and | ||||||
15 | retire all renewable energy credits generated by the | ||||||
16 | project for the first 15 years of operation. | ||||||
17 | (iii) For those renewable energy credits that | ||||||
18 | qualify and are procured under item (ii) and (iii) of | ||||||
19 | subparagraph (K) of this paragraph (1) and any | ||||||
20 | additional categories of distributed generation | ||||||
21 | included in the long-term renewable resources | ||||||
22 | procurement plan and approved by the Commission, 20 | ||||||
23 | percent of the renewable energy credit purchase price | ||||||
24 | shall be paid by the contracting utilities at the time | ||||||
25 | that the facility producing the renewable energy | ||||||
26 | credits is interconnected at the distribution system |
| |||||||
| |||||||
1 | level of the utility and energized. The remaining | ||||||
2 | portion shall be paid ratably over the subsequent | ||||||
3 | 4-year period. The electric utility shall receive and | ||||||
4 | retire all renewable energy credits generated by the | ||||||
5 | project for the first 15 years of operation. | ||||||
6 | (iv) Each contract shall include provisions to | ||||||
7 | ensure the delivery of the renewable energy credits for | ||||||
8 | the full term of the contract. | ||||||
9 | (v) The utility shall be the counterparty to the | ||||||
10 | contracts executed under this subparagraph (L) that | ||||||
11 | are approved by the Commission under the process | ||||||
12 | described in Section 16-111.5 of the Public Utilities | ||||||
13 | Act. No contract shall be executed for an amount that | ||||||
14 | is less than one renewable energy credit per year. | ||||||
15 | (vi) If, at any time, approved applications for the | ||||||
16 | Adjustable Block program exceed funds collected by the | ||||||
17 | electric utility or would cause the Agency to exceed | ||||||
18 | the limitation described in subparagraph (E) of this | ||||||
19 | paragraph (1) on the amount of renewable energy | ||||||
20 | resources that may be procured, then the Agency shall | ||||||
21 | consider future uncommitted funds to be reserved for | ||||||
22 | these contracts on a first-come, first-served basis, | ||||||
23 | with the delivery of renewable energy credits required | ||||||
24 | beginning at the time that the reserved funds become | ||||||
25 | available. | ||||||
26 | (vii) Nothing in this Section shall require the |
| |||||||
| |||||||
1 | utility to advance any payment or pay any amounts that | ||||||
2 | exceed the actual amount of revenues collected by the | ||||||
3 | utility under paragraph (6) of this subsection (c) and | ||||||
4 | subsection (k) of Section 16-108 of the Public | ||||||
5 | Utilities Act, and contracts executed under this | ||||||
6 | Section shall expressly incorporate this limitation. | ||||||
7 | (M) The Agency shall be authorized to retain one or | ||||||
8 | more experts or expert consulting firms to develop, | ||||||
9 | administer, implement, operate, and evaluate the | ||||||
10 | Adjustable Block program described in subparagraph (K) of | ||||||
11 | this paragraph (1), and the Agency shall retain the | ||||||
12 | consultant or consultants in the same manner, to the extent | ||||||
13 | practicable, as the Agency retains others to administer | ||||||
14 | provisions of this Act, including, but not limited to, the | ||||||
15 | procurement administrator. The selection of experts and | ||||||
16 | expert consulting firms and the procurement process | ||||||
17 | described in this subparagraph (M) are exempt from the | ||||||
18 | requirements of Section 20-10 of the Illinois Procurement | ||||||
19 | Code, under Section 20-10 of that Code. The Agency shall | ||||||
20 | strive to minimize administrative expenses in the | ||||||
21 | implementation of the Adjustable Block program. | ||||||
22 | The Agency and its consultant or consultants shall | ||||||
23 | monitor block activity, share program activity with | ||||||
24 | stakeholders and conduct regularly scheduled meetings to | ||||||
25 | discuss program activity and market conditions. If | ||||||
26 | necessary, the Agency may make prospective administrative |
| |||||||
| |||||||
1 | adjustments to the Adjustable Block program design, such as | ||||||
2 | redistributing available funds or making adjustments to | ||||||
3 | purchase prices as necessary to achieve the goals of this | ||||||
4 | subsection (c). Program modifications to any price, | ||||||
5 | capacity block, or other program element that do not | ||||||
6 | deviate from the Commission's approved value by more than | ||||||
7 | 25% shall take effect immediately and are not subject to | ||||||
8 | Commission review and approval. Program modifications to | ||||||
9 | any price, capacity block, or other program element that | ||||||
10 | deviate more than 25% from the Commission's approved value | ||||||
11 | must be approved by the Commission as a long-term plan | ||||||
12 | amendment under Section 16-111.5 of the Public Utilities | ||||||
13 | Act. The Agency shall consider stakeholder feedback when | ||||||
14 | making adjustments to the Adjustable Block design and shall | ||||||
15 | notify stakeholders in advance of any planned changes. | ||||||
16 | (N) The long-term renewable resources procurement plan | ||||||
17 | required by this subsection (c) shall include a community | ||||||
18 | renewable generation program. The Agency shall establish | ||||||
19 | the terms, conditions, and program requirements for | ||||||
20 | community renewable generation projects with a goal to | ||||||
21 | expand renewable energy generating facility access to a | ||||||
22 | broader group of energy consumers, to ensure robust | ||||||
23 | participation opportunities for residential and small | ||||||
24 | commercial customers and those who cannot install | ||||||
25 | renewable energy on their own properties. Any plan approved | ||||||
26 | by the Commission shall allow subscriptions to community |
| |||||||
| |||||||
1 | renewable generation projects to be portable and | ||||||
2 | transferable. For purposes of this subparagraph (N), | ||||||
3 | "portable" means that subscriptions may be retained by the | ||||||
4 | subscriber even if the subscriber relocates or changes its | ||||||
5 | address within the same utility service territory; and | ||||||
6 | "transferable" means that a subscriber may assign or sell | ||||||
7 | subscriptions to another person within the same utility | ||||||
8 | service territory. | ||||||
9 | Electric utilities shall provide a monetary credit to a | ||||||
10 | subscriber's subsequent bill for service for the | ||||||
11 | proportional output of a community renewable generation | ||||||
12 | project attributable to that subscriber as specified in | ||||||
13 | Section 16-107.5 of the Public Utilities Act. | ||||||
14 | The Agency shall purchase renewable energy credits | ||||||
15 | from subscribed shares of photovoltaic community renewable | ||||||
16 | generation projects through the Adjustable Block program | ||||||
17 | described in subparagraph (K) of this paragraph (1) or | ||||||
18 | through the Illinois Solar for All Program described in | ||||||
19 | Section 1-56 of this Act. The electric utility shall | ||||||
20 | purchase any unsubscribed energy from community renewable | ||||||
21 | generation projects that are Qualifying Facilities ("QF") | ||||||
22 | under the electric utility's tariff for purchasing the | ||||||
23 | output from QFs under Public Utilities Regulatory Policies | ||||||
24 | Act of 1978. | ||||||
25 | The owners of and any subscribers to a community | ||||||
26 | renewable generation project shall not be considered |
| |||||||
| |||||||
1 | public utilities or alternative retail electricity | ||||||
2 | suppliers under the Public Utilities Act solely as a result | ||||||
3 | of their interest in or subscription to a community | ||||||
4 | renewable generation project and shall not be required to | ||||||
5 | become an alternative retail electric supplier by | ||||||
6 | participating in a community renewable generation project | ||||||
7 | with a public utility. | ||||||
8 | (O) For the delivery year beginning June 1, 2018, the | ||||||
9 | long-term renewable resources procurement plan required by | ||||||
10 | this subsection (c) shall provide for the Agency to procure | ||||||
11 | contracts to continue offering the Illinois Solar for All | ||||||
12 | Program described in subsection (b) of Section 1-56 of this | ||||||
13 | Act, and the contracts approved by the Commission shall be | ||||||
14 | executed by the utilities that are subject to this | ||||||
15 | subsection (c). The long-term renewable resources | ||||||
16 | procurement plan shall allocate 5% of the funds available | ||||||
17 | under the plan for the applicable delivery year, or | ||||||
18 | $10,000,000 per delivery year, whichever is greater, to | ||||||
19 | fund the programs, and the plan shall determine the amount | ||||||
20 | of funding to be apportioned to the programs identified in | ||||||
21 | subsection (b) of Section 1-56 of this Act; provided that | ||||||
22 | for the delivery years beginning June 1, 2017, June 1, | ||||||
23 | 2021, and June 1, 2025, the long-term renewable resources | ||||||
24 | procurement plan shall allocate 10% of the funds available | ||||||
25 | under the plan for the applicable delivery year, or | ||||||
26 | $20,000,000 per delivery year, whichever is greater, and |
| |||||||
| |||||||
1 | $10,000,000 of such funds in such year shall be used by an | ||||||
2 | electric utility that serves more than 3,000,000 retail | ||||||
3 | customers in the State to implement a Commission-approved | ||||||
4 | plan under Section 16-108.12 of the Public Utilities Act. | ||||||
5 | In making the determinations required under this | ||||||
6 | subparagraph (O), the Commission shall consider the | ||||||
7 | experience and performance under the programs and any | ||||||
8 | evaluation reports. The Commission shall also provide for | ||||||
9 | an independent evaluation of those programs on a periodic | ||||||
10 | basis that are funded under this subparagraph (O). | ||||||
11 | (2) (Blank). | ||||||
12 | (3) (Blank). | ||||||
13 | (4) The electric utility shall retire all renewable | ||||||
14 | energy credits used to comply with the standard. | ||||||
15 | (5) Beginning with the 2010 delivery year and ending | ||||||
16 | June 1, 2017, an electric utility subject to this | ||||||
17 | subsection (c) shall apply the lesser of the maximum | ||||||
18 | alternative compliance payment rate or the most recent | ||||||
19 | estimated alternative compliance payment rate for its | ||||||
20 | service territory for the corresponding compliance period, | ||||||
21 | established pursuant to subsection (d) of Section 16-115D | ||||||
22 | of the Public Utilities Act to its retail customers that | ||||||
23 | take service pursuant to the electric utility's hourly | ||||||
24 | pricing tariff or tariffs. The electric utility shall | ||||||
25 | retain all amounts collected as a result of the application | ||||||
26 | of the alternative compliance payment rate or rates to such |
| |||||||
| |||||||
1 | customers, and, beginning in 2011, the utility shall | ||||||
2 | include in the information provided under item (1) of | ||||||
3 | subsection (d) of Section 16-111.5 of the Public Utilities | ||||||
4 | Act the amounts collected under the alternative compliance | ||||||
5 | payment rate or rates for the prior year ending May 31. | ||||||
6 | Notwithstanding any limitation on the procurement of | ||||||
7 | renewable energy resources imposed by item (2) of this | ||||||
8 | subsection (c), the Agency shall increase its spending on | ||||||
9 | the purchase of renewable energy resources to be procured | ||||||
10 | by the electric utility for the next plan year by an amount | ||||||
11 | equal to the amounts collected by the utility under the | ||||||
12 | alternative compliance payment rate or rates in the prior | ||||||
13 | year ending May 31. | ||||||
14 | (6) The electric utility shall be entitled to recover | ||||||
15 | all of its costs associated with the procurement of | ||||||
16 | renewable energy credits under plans approved under this | ||||||
17 | Section and Section 16-111.5 of the Public Utilities Act. | ||||||
18 | These costs shall include associated reasonable expenses | ||||||
19 | for implementing the procurement programs, including, but | ||||||
20 | not limited to, the costs of administering and evaluating | ||||||
21 | the Adjustable Block program, through an automatic | ||||||
22 | adjustment clause tariff in accordance with subsection (k) | ||||||
23 | of Section 16-108 of the Public Utilities Act. | ||||||
24 | (7) Renewable energy credits procured from new | ||||||
25 | photovoltaic projects or new distributed renewable energy | ||||||
26 | generation devices under this Section after June 1, 2017 |
| |||||||
| |||||||
1 | ( the effective date of Public Act 99-906) this amendatory | ||||||
2 | Act of the 99th General Assembly must be procured from | ||||||
3 | devices installed by a qualified person in compliance with | ||||||
4 | the requirements of Section 16-128A of the Public Utilities | ||||||
5 | Act and any rules or regulations adopted thereunder. | ||||||
6 | In meeting the renewable energy requirements of this | ||||||
7 | subsection (c), to the extent feasible and consistent with | ||||||
8 | State and federal law, the renewable energy credit | ||||||
9 | procurements, Adjustable Block solar program, and | ||||||
10 | community renewable generation program shall provide | ||||||
11 | employment opportunities for all segments of the | ||||||
12 | population and workforce, including minority-owned and | ||||||
13 | female-owned business enterprises, and shall not, | ||||||
14 | consistent with State and federal law, discriminate based | ||||||
15 | on race or socioeconomic status. | ||||||
16 | (d) Clean coal portfolio standard. | ||||||
17 | (1) The procurement plans shall include electricity | ||||||
18 | generated using clean coal. Each utility shall enter into | ||||||
19 | one or more sourcing agreements with the initial clean coal | ||||||
20 | facility, as provided in paragraph (3) of this subsection | ||||||
21 | (d), covering electricity generated by the initial clean | ||||||
22 | coal facility representing at least 5% of each utility's | ||||||
23 | total supply to serve the load of eligible retail customers | ||||||
24 | in 2015 and each year thereafter, as described in paragraph | ||||||
25 | (3) of this subsection (d), subject to the limits specified | ||||||
26 | in paragraph (2) of this subsection (d). It is the goal of |
| |||||||
| |||||||
1 | the State that by January 1, 2025, 25% of the electricity | ||||||
2 | used in the State shall be generated by cost-effective | ||||||
3 | clean coal facilities. For purposes of this subsection (d), | ||||||
4 | "cost-effective" means that the expenditures pursuant to | ||||||
5 | such sourcing agreements do not cause the limit stated in | ||||||
6 | paragraph (2) of this subsection (d) to be exceeded and do | ||||||
7 | not exceed cost-based benchmarks, which shall be developed | ||||||
8 | to assess all expenditures pursuant to such sourcing | ||||||
9 | agreements covering electricity generated by clean coal | ||||||
10 | facilities, other than the initial clean coal facility, by | ||||||
11 | the procurement administrator, in consultation with the | ||||||
12 | Commission staff, Agency staff, and the procurement | ||||||
13 | monitor and shall be subject to Commission review and | ||||||
14 | approval. | ||||||
15 | A utility party to a sourcing agreement shall | ||||||
16 | immediately retire any emission credits that it receives in | ||||||
17 | connection with the electricity covered by such agreement. | ||||||
18 | Utilities shall maintain adequate records documenting | ||||||
19 | the purchases under the sourcing agreement to comply with | ||||||
20 | this subsection (d) and shall file an accounting with the | ||||||
21 | load forecast that must be filed with the Agency by July 15 | ||||||
22 | of each year, in accordance with subsection (d) of Section | ||||||
23 | 16-111.5 of the Public Utilities Act. | ||||||
24 | A utility shall be deemed to have complied with the | ||||||
25 | clean coal portfolio standard specified in this subsection | ||||||
26 | (d) if the utility enters into a sourcing agreement as |
| |||||||
| |||||||
1 | required by this subsection (d). | ||||||
2 | (2) For purposes of this subsection (d), the required | ||||||
3 | execution of sourcing agreements with the initial clean | ||||||
4 | coal facility for a particular year shall be measured as a | ||||||
5 | percentage of the actual amount of electricity | ||||||
6 | (megawatt-hours) supplied by the electric utility to | ||||||
7 | eligible retail customers in the planning year ending | ||||||
8 | immediately prior to the agreement's execution. For | ||||||
9 | purposes of this subsection (d), the amount paid per | ||||||
10 | kilowatthour means the total amount paid for electric | ||||||
11 | service expressed on a per kilowatthour basis. For purposes | ||||||
12 | of this subsection (d), the total amount paid for electric | ||||||
13 | service includes without limitation amounts paid for | ||||||
14 | supply, transmission, distribution, surcharges and add-on | ||||||
15 | taxes. | ||||||
16 | Notwithstanding the requirements of this subsection | ||||||
17 | (d), the total amount paid under sourcing agreements with | ||||||
18 | clean coal facilities pursuant to the procurement plan for | ||||||
19 | any given year shall be reduced by an amount necessary to | ||||||
20 | limit the annual estimated average net increase due to the | ||||||
21 | costs of these resources included in the amounts paid by | ||||||
22 | eligible retail customers in connection with electric | ||||||
23 | service to: | ||||||
24 | (A) in 2010, no more than 0.5% of the amount paid | ||||||
25 | per kilowatthour by those customers during the year | ||||||
26 | ending May 31, 2009; |
| |||||||
| |||||||
1 | (B) in 2011, the greater of an additional 0.5% of | ||||||
2 | the amount paid per kilowatthour by those customers | ||||||
3 | during the year ending May 31, 2010 or 1% of the amount | ||||||
4 | paid per kilowatthour by those customers during the | ||||||
5 | year ending May 31, 2009; | ||||||
6 | (C) in 2012, the greater of an additional 0.5% of | ||||||
7 | the amount paid per kilowatthour by those customers | ||||||
8 | during the year ending May 31, 2011 or 1.5% of the | ||||||
9 | amount paid per kilowatthour by those customers during | ||||||
10 | the year ending May 31, 2009; | ||||||
11 | (D) in 2013, the greater of an additional 0.5% of | ||||||
12 | the amount paid per kilowatthour by those customers | ||||||
13 | during the year ending May 31, 2012 or 2% of the amount | ||||||
14 | paid per kilowatthour by those customers during the | ||||||
15 | year ending May 31, 2009; and | ||||||
16 | (E) thereafter, the total amount paid under | ||||||
17 | sourcing agreements with clean coal facilities | ||||||
18 | pursuant to the procurement plan for any single year | ||||||
19 | shall be reduced by an amount necessary to limit the | ||||||
20 | estimated average net increase due to the cost of these | ||||||
21 | resources included in the amounts paid by eligible | ||||||
22 | retail customers in connection with electric service | ||||||
23 | to no more than the greater of (i) 2.015% of the amount | ||||||
24 | paid per kilowatthour by those customers during the | ||||||
25 | year ending May 31, 2009 or (ii) the incremental amount | ||||||
26 | per kilowatthour paid for these resources in 2013. |
| |||||||
| |||||||
1 | These requirements may be altered only as provided by | ||||||
2 | statute. | ||||||
3 | No later than June 30, 2015, the Commission shall | ||||||
4 | review the limitation on the total amount paid under | ||||||
5 | sourcing agreements, if any, with clean coal facilities | ||||||
6 | pursuant to this subsection (d) and report to the General | ||||||
7 | Assembly its findings as to whether that limitation unduly | ||||||
8 | constrains the amount of electricity generated by | ||||||
9 | cost-effective clean coal facilities that is covered by | ||||||
10 | sourcing agreements. | ||||||
11 | (3) Initial clean coal facility. In order to promote | ||||||
12 | development of clean coal facilities in Illinois, each | ||||||
13 | electric utility subject to this Section shall execute a | ||||||
14 | sourcing agreement to source electricity from a proposed | ||||||
15 | clean coal facility in Illinois (the "initial clean coal | ||||||
16 | facility") that will have a nameplate capacity of at least | ||||||
17 | 500 MW when commercial operation commences, that has a | ||||||
18 | final Clean Air Act permit on June 1, 2009 ( the effective | ||||||
19 | date of Public Act 95-1027) this amendatory Act of the 95th | ||||||
20 | General Assembly , and that will meet the definition of | ||||||
21 | clean coal facility in Section 1-10 of this Act when | ||||||
22 | commercial operation commences. The sourcing agreements | ||||||
23 | with this initial clean coal facility shall be subject to | ||||||
24 | both approval of the initial clean coal facility by the | ||||||
25 | General Assembly and satisfaction of the requirements of | ||||||
26 | paragraph (4) of this subsection (d) and shall be executed |
| |||||||
| |||||||
1 | within 90 days after any such approval by the General | ||||||
2 | Assembly. The Agency and the Commission shall have | ||||||
3 | authority to inspect all books and records associated with | ||||||
4 | the initial clean coal facility during the term of such a | ||||||
5 | sourcing agreement. A utility's sourcing agreement for | ||||||
6 | electricity produced by the initial clean coal facility | ||||||
7 | shall include: | ||||||
8 | (A) a formula contractual price (the "contract | ||||||
9 | price") approved pursuant to paragraph (4) of this | ||||||
10 | subsection (d), which shall: | ||||||
11 | (i) be determined using a cost of service | ||||||
12 | methodology employing either a level or deferred | ||||||
13 | capital recovery component, based on a capital | ||||||
14 | structure consisting of 45% equity and 55% debt, | ||||||
15 | and a return on equity as may be approved by the | ||||||
16 | Federal Energy Regulatory Commission, which in any | ||||||
17 | case may not exceed the lower of 11.5% or the rate | ||||||
18 | of return approved by the General Assembly | ||||||
19 | pursuant to paragraph (4) of this subsection (d); | ||||||
20 | and | ||||||
21 | (ii) provide that all miscellaneous net | ||||||
22 | revenue, including but not limited to net revenue | ||||||
23 | from the sale of emission allowances, if any, | ||||||
24 | substitute natural gas, if any, grants or other | ||||||
25 | support provided by the State of Illinois or the | ||||||
26 | United States Government, firm transmission |
| |||||||
| |||||||
1 | rights, if any, by-products produced by the | ||||||
2 | facility, energy or capacity derived from the | ||||||
3 | facility and not covered by a sourcing agreement | ||||||
4 | pursuant to paragraph (3) of this subsection (d) or | ||||||
5 | item (5) of subsection (d) of Section 16-115 of the | ||||||
6 | Public Utilities Act, whether generated from the | ||||||
7 | synthesis gas derived from coal, from SNG, or from | ||||||
8 | natural gas, shall be credited against the revenue | ||||||
9 | requirement for this initial clean coal facility; | ||||||
10 | (B) power purchase provisions, which shall: | ||||||
11 | (i) provide that the utility party to such | ||||||
12 | sourcing agreement shall pay the contract price | ||||||
13 | for electricity delivered under such sourcing | ||||||
14 | agreement; | ||||||
15 | (ii) require delivery of electricity to the | ||||||
16 | regional transmission organization market of the | ||||||
17 | utility that is party to such sourcing agreement; | ||||||
18 | (iii) require the utility party to such | ||||||
19 | sourcing agreement to buy from the initial clean | ||||||
20 | coal facility in each hour an amount of energy | ||||||
21 | equal to all clean coal energy made available from | ||||||
22 | the initial clean coal facility during such hour | ||||||
23 | times a fraction, the numerator of which is such | ||||||
24 | utility's retail market sales of electricity | ||||||
25 | (expressed in kilowatthours sold) in the State | ||||||
26 | during the prior calendar month and the |
| |||||||
| |||||||
1 | denominator of which is the total retail market | ||||||
2 | sales of electricity (expressed in kilowatthours | ||||||
3 | sold) in the State by utilities during such prior | ||||||
4 | month and the sales of electricity (expressed in | ||||||
5 | kilowatthours sold) in the State by alternative | ||||||
6 | retail electric suppliers during such prior month | ||||||
7 | that are subject to the requirements of this | ||||||
8 | subsection (d) and paragraph (5) of subsection (d) | ||||||
9 | of Section 16-115 of the Public Utilities Act, | ||||||
10 | provided that the amount purchased by the utility | ||||||
11 | in any year will be limited by paragraph (2) of | ||||||
12 | this subsection (d); and | ||||||
13 | (iv) be considered pre-existing contracts in | ||||||
14 | such utility's procurement plans for eligible | ||||||
15 | retail customers; | ||||||
16 | (C) contract for differences provisions, which | ||||||
17 | shall: | ||||||
18 | (i) require the utility party to such sourcing | ||||||
19 | agreement to contract with the initial clean coal | ||||||
20 | facility in each hour with respect to an amount of | ||||||
21 | energy equal to all clean coal energy made | ||||||
22 | available from the initial clean coal facility | ||||||
23 | during such hour times a fraction, the numerator of | ||||||
24 | which is such utility's retail market sales of | ||||||
25 | electricity (expressed in kilowatthours sold) in | ||||||
26 | the utility's service territory in the State |
| |||||||
| |||||||
1 | during the prior calendar month and the | ||||||
2 | denominator of which is the total retail market | ||||||
3 | sales of electricity (expressed in kilowatthours | ||||||
4 | sold) in the State by utilities during such prior | ||||||
5 | month and the sales of electricity (expressed in | ||||||
6 | kilowatthours sold) in the State by alternative | ||||||
7 | retail electric suppliers during such prior month | ||||||
8 | that are subject to the requirements of this | ||||||
9 | subsection (d) and paragraph (5) of subsection (d) | ||||||
10 | of Section 16-115 of the Public Utilities Act, | ||||||
11 | provided that the amount paid by the utility in any | ||||||
12 | year will be limited by paragraph (2) of this | ||||||
13 | subsection (d); | ||||||
14 | (ii) provide that the utility's payment | ||||||
15 | obligation in respect of the quantity of | ||||||
16 | electricity determined pursuant to the preceding | ||||||
17 | clause (i) shall be limited to an amount equal to | ||||||
18 | (1) the difference between the contract price | ||||||
19 | determined pursuant to subparagraph (A) of | ||||||
20 | paragraph (3) of this subsection (d) and the | ||||||
21 | day-ahead price for electricity delivered to the | ||||||
22 | regional transmission organization market of the | ||||||
23 | utility that is party to such sourcing agreement | ||||||
24 | (or any successor delivery point at which such | ||||||
25 | utility's supply obligations are financially | ||||||
26 | settled on an hourly basis) (the "reference |
| |||||||
| |||||||
1 | price") on the day preceding the day on which the | ||||||
2 | electricity is delivered to the initial clean coal | ||||||
3 | facility busbar, multiplied by (2) the quantity of | ||||||
4 | electricity determined pursuant to the preceding | ||||||
5 | clause (i); and | ||||||
6 | (iii) not require the utility to take physical | ||||||
7 | delivery of the electricity produced by the | ||||||
8 | facility; | ||||||
9 | (D) general provisions, which shall: | ||||||
10 | (i) specify a term of no more than 30 years, | ||||||
11 | commencing on the commercial operation date of the | ||||||
12 | facility; | ||||||
13 | (ii) provide that utilities shall maintain | ||||||
14 | adequate records documenting purchases under the | ||||||
15 | sourcing agreements entered into to comply with | ||||||
16 | this subsection (d) and shall file an accounting | ||||||
17 | with the load forecast that must be filed with the | ||||||
18 | Agency by July 15 of each year, in accordance with | ||||||
19 | subsection (d) of Section 16-111.5 of the Public | ||||||
20 | Utilities Act; | ||||||
21 | (iii) provide that all costs associated with | ||||||
22 | the initial clean coal facility will be | ||||||
23 | periodically reported to the Federal Energy | ||||||
24 | Regulatory Commission and to purchasers in | ||||||
25 | accordance with applicable laws governing | ||||||
26 | cost-based wholesale power contracts; |
| |||||||
| |||||||
1 | (iv) permit the Illinois Power Agency to | ||||||
2 | assume ownership of the initial clean coal | ||||||
3 | facility, without monetary consideration and | ||||||
4 | otherwise on reasonable terms acceptable to the | ||||||
5 | Agency, if the Agency so requests no less than 3 | ||||||
6 | years prior to the end of the stated contract term; | ||||||
7 | (v) require the owner of the initial clean coal | ||||||
8 | facility to provide documentation to the | ||||||
9 | Commission each year, starting in the facility's | ||||||
10 | first year of commercial operation, accurately | ||||||
11 | reporting the quantity of carbon emissions from | ||||||
12 | the facility that have been captured and | ||||||
13 | sequestered and report any quantities of carbon | ||||||
14 | released from the site or sites at which carbon | ||||||
15 | emissions were sequestered in prior years, based | ||||||
16 | on continuous monitoring of such sites. If, in any | ||||||
17 | year after the first year of commercial operation, | ||||||
18 | the owner of the facility fails to demonstrate that | ||||||
19 | the initial clean coal facility captured and | ||||||
20 | sequestered at least 50% of the total carbon | ||||||
21 | emissions that the facility would otherwise emit | ||||||
22 | or that sequestration of emissions from prior | ||||||
23 | years has failed, resulting in the release of | ||||||
24 | carbon dioxide into the atmosphere, the owner of | ||||||
25 | the facility must offset excess emissions. Any | ||||||
26 | such carbon offsets must be permanent, additional, |
| |||||||
| |||||||
1 | verifiable, real, located within the State of | ||||||
2 | Illinois, and legally and practicably enforceable. | ||||||
3 | The cost of such offsets for the facility that are | ||||||
4 | not recoverable shall not exceed $15 million in any | ||||||
5 | given year. No costs of any such purchases of | ||||||
6 | carbon offsets may be recovered from a utility or | ||||||
7 | its customers. All carbon offsets purchased for | ||||||
8 | this purpose and any carbon emission credits | ||||||
9 | associated with sequestration of carbon from the | ||||||
10 | facility must be permanently retired. The initial | ||||||
11 | clean coal facility shall not forfeit its | ||||||
12 | designation as a clean coal facility if the | ||||||
13 | facility fails to fully comply with the applicable | ||||||
14 | carbon sequestration requirements in any given | ||||||
15 | year, provided the requisite offsets are | ||||||
16 | purchased. However, the Attorney General, on | ||||||
17 | behalf of the People of the State of Illinois, may | ||||||
18 | specifically enforce the facility's sequestration | ||||||
19 | requirement and the other terms of this contract | ||||||
20 | provision. Compliance with the sequestration | ||||||
21 | requirements and offset purchase requirements | ||||||
22 | specified in paragraph (3) of this subsection (d) | ||||||
23 | shall be reviewed annually by an independent | ||||||
24 | expert retained by the owner of the initial clean | ||||||
25 | coal facility, with the advance written approval | ||||||
26 | of the Attorney General. The Commission may, in the |
| |||||||
| |||||||
1 | course of the review specified in item (vii), | ||||||
2 | reduce the allowable return on equity for the | ||||||
3 | facility if the facility willfully wilfully fails | ||||||
4 | to comply with the carbon capture and | ||||||
5 | sequestration requirements set forth in this item | ||||||
6 | (v); | ||||||
7 | (vi) include limits on, and accordingly | ||||||
8 | provide for modification of, the amount the | ||||||
9 | utility is required to source under the sourcing | ||||||
10 | agreement consistent with paragraph (2) of this | ||||||
11 | subsection (d); | ||||||
12 | (vii) require Commission review: (1) to | ||||||
13 | determine the justness, reasonableness, and | ||||||
14 | prudence of the inputs to the formula referenced in | ||||||
15 | subparagraphs (A)(i) through (A)(iii) of paragraph | ||||||
16 | (3) of this subsection (d), prior to an adjustment | ||||||
17 | in those inputs including, without limitation, the | ||||||
18 | capital structure and return on equity, fuel | ||||||
19 | costs, and other operations and maintenance costs | ||||||
20 | and (2) to approve the costs to be passed through | ||||||
21 | to customers under the sourcing agreement by which | ||||||
22 | the utility satisfies its statutory obligations. | ||||||
23 | Commission review shall occur no less than every 3 | ||||||
24 | years, regardless of whether any adjustments have | ||||||
25 | been proposed, and shall be completed within 9 | ||||||
26 | months; |
| |||||||
| |||||||
1 | (viii) limit the utility's obligation to such | ||||||
2 | amount as the utility is allowed to recover through | ||||||
3 | tariffs filed with the Commission, provided that | ||||||
4 | neither the clean coal facility nor the utility | ||||||
5 | waives any right to assert federal pre-emption or | ||||||
6 | any other argument in response to a purported | ||||||
7 | disallowance of recovery costs; | ||||||
8 | (ix) limit the utility's or alternative retail | ||||||
9 | electric supplier's obligation to incur any | ||||||
10 | liability until such time as the facility is in | ||||||
11 | commercial operation and generating power and | ||||||
12 | energy and such power and energy is being delivered | ||||||
13 | to the facility busbar; | ||||||
14 | (x) provide that the owner or owners of the | ||||||
15 | initial clean coal facility, which is the | ||||||
16 | counterparty to such sourcing agreement, shall | ||||||
17 | have the right from time to time to elect whether | ||||||
18 | the obligations of the utility party thereto shall | ||||||
19 | be governed by the power purchase provisions or the | ||||||
20 | contract for differences provisions; | ||||||
21 | (xi) append documentation showing that the | ||||||
22 | formula rate and contract, insofar as they relate | ||||||
23 | to the power purchase provisions, have been | ||||||
24 | approved by the Federal Energy Regulatory | ||||||
25 | Commission pursuant to Section 205 of the Federal | ||||||
26 | Power Act; |
| |||||||
| |||||||
1 | (xii) provide that any changes to the terms of | ||||||
2 | the contract, insofar as such changes relate to the | ||||||
3 | power purchase provisions, are subject to review | ||||||
4 | under the public interest standard applied by the | ||||||
5 | Federal Energy Regulatory Commission pursuant to | ||||||
6 | Sections 205 and 206 of the Federal Power Act; and | ||||||
7 | (xiii) conform with customary lender | ||||||
8 | requirements in power purchase agreements used as | ||||||
9 | the basis for financing non-utility generators. | ||||||
10 | (4) Effective date of sourcing agreements with the | ||||||
11 | initial clean coal facility. | ||||||
12 | Any proposed sourcing agreement with the initial clean | ||||||
13 | coal facility shall not become effective unless the | ||||||
14 | following reports are prepared and submitted and | ||||||
15 | authorizations and approvals obtained: | ||||||
16 | (i) Facility cost report. The owner of the initial | ||||||
17 | clean coal facility shall submit to the Commission, the | ||||||
18 | Agency, and the General Assembly a front-end | ||||||
19 | engineering and design study, a facility cost report, | ||||||
20 | method of financing (including but not limited to | ||||||
21 | structure and associated costs), and an operating and | ||||||
22 | maintenance cost quote for the facility (collectively | ||||||
23 | "facility cost report"), which shall be prepared in | ||||||
24 | accordance with the requirements of this paragraph (4) | ||||||
25 | of subsection (d) of this Section, and shall provide | ||||||
26 | the Commission and the Agency access to the work |
| |||||||
| |||||||
1 | papers, relied upon documents, and any other backup | ||||||
2 | documentation related to the facility cost report. | ||||||
3 | (ii) Commission report. Within 6 months following | ||||||
4 | receipt of the facility cost report, the Commission, in | ||||||
5 | consultation with the Agency, shall submit a report to | ||||||
6 | the General Assembly setting forth its analysis of the | ||||||
7 | facility cost report. Such report shall include, but | ||||||
8 | not be limited to, a comparison of the costs associated | ||||||
9 | with electricity generated by the initial clean coal | ||||||
10 | facility to the costs associated with electricity | ||||||
11 | generated by other types of generation facilities, an | ||||||
12 | analysis of the rate impacts on residential and small | ||||||
13 | business customers over the life of the sourcing | ||||||
14 | agreements, and an analysis of the likelihood that the | ||||||
15 | initial clean coal facility will commence commercial | ||||||
16 | operation by and be delivering power to the facility's | ||||||
17 | busbar by 2016. To assist in the preparation of its | ||||||
18 | report, the Commission, in consultation with the | ||||||
19 | Agency, may hire one or more experts or consultants, | ||||||
20 | the costs of which shall be paid for by the owner of | ||||||
21 | the initial clean coal facility. The Commission and | ||||||
22 | Agency may begin the process of selecting such experts | ||||||
23 | or consultants prior to receipt of the facility cost | ||||||
24 | report. | ||||||
25 | (iii) General Assembly approval. The proposed | ||||||
26 | sourcing agreements shall not take effect unless, |
| |||||||
| |||||||
1 | based on the facility cost report and the Commission's | ||||||
2 | report, the General Assembly enacts authorizing | ||||||
3 | legislation approving (A) the projected price, stated | ||||||
4 | in cents per kilowatthour, to be charged for | ||||||
5 | electricity generated by the initial clean coal | ||||||
6 | facility, (B) the projected impact on residential and | ||||||
7 | small business customers' bills over the life of the | ||||||
8 | sourcing agreements, and (C) the maximum allowable | ||||||
9 | return on equity for the project; and | ||||||
10 | (iv) Commission review. If the General Assembly | ||||||
11 | enacts authorizing legislation pursuant to | ||||||
12 | subparagraph (iii) approving a sourcing agreement, the | ||||||
13 | Commission shall, within 90 days of such enactment, | ||||||
14 | complete a review of such sourcing agreement. During | ||||||
15 | such time period, the Commission shall implement any | ||||||
16 | directive of the General Assembly, resolve any | ||||||
17 | disputes between the parties to the sourcing agreement | ||||||
18 | concerning the terms of such agreement, approve the | ||||||
19 | form of such agreement, and issue an order finding that | ||||||
20 | the sourcing agreement is prudent and reasonable. | ||||||
21 | The facility cost report shall be prepared as follows: | ||||||
22 | (A) The facility cost report shall be prepared by | ||||||
23 | duly licensed engineering and construction firms | ||||||
24 | detailing the estimated capital costs payable to one or | ||||||
25 | more contractors or suppliers for the engineering, | ||||||
26 | procurement and construction of the components |
| |||||||
| |||||||
1 | comprising the initial clean coal facility and the | ||||||
2 | estimated costs of operation and maintenance of the | ||||||
3 | facility. The facility cost report shall include: | ||||||
4 | (i) an estimate of the capital cost of the core | ||||||
5 | plant based on one or more front end engineering | ||||||
6 | and design studies for the gasification island and | ||||||
7 | related facilities. The core plant shall include | ||||||
8 | all civil, structural, mechanical, electrical, | ||||||
9 | control, and safety systems. | ||||||
10 | (ii) an estimate of the capital cost of the | ||||||
11 | balance of the plant, including any capital costs | ||||||
12 | associated with sequestration of carbon dioxide | ||||||
13 | emissions and all interconnects and interfaces | ||||||
14 | required to operate the facility, such as | ||||||
15 | transmission of electricity, construction or | ||||||
16 | backfeed power supply, pipelines to transport | ||||||
17 | substitute natural gas or carbon dioxide, potable | ||||||
18 | water supply, natural gas supply, water supply, | ||||||
19 | water discharge, landfill, access roads, and coal | ||||||
20 | delivery. | ||||||
21 | The quoted construction costs shall be expressed | ||||||
22 | in nominal dollars as of the date that the quote is | ||||||
23 | prepared and shall include capitalized financing costs | ||||||
24 | during construction,
taxes, insurance, and other | ||||||
25 | owner's costs, and an assumed escalation in materials | ||||||
26 | and labor beyond the date as of which the construction |
| |||||||
| |||||||
1 | cost quote is expressed. | ||||||
2 | (B) The front end engineering and design study for | ||||||
3 | the gasification island and the cost study for the | ||||||
4 | balance of plant shall include sufficient design work | ||||||
5 | to permit quantification of major categories of | ||||||
6 | materials, commodities and labor hours, and receipt of | ||||||
7 | quotes from vendors of major equipment required to | ||||||
8 | construct and operate the clean coal facility. | ||||||
9 | (C) The facility cost report shall also include an | ||||||
10 | operating and maintenance cost quote that will provide | ||||||
11 | the estimated cost of delivered fuel, personnel, | ||||||
12 | maintenance contracts, chemicals, catalysts, | ||||||
13 | consumables, spares, and other fixed and variable | ||||||
14 | operations and maintenance costs. The delivered fuel | ||||||
15 | cost estimate will be provided by a recognized third | ||||||
16 | party expert or experts in the fuel and transportation | ||||||
17 | industries. The balance of the operating and | ||||||
18 | maintenance cost quote, excluding delivered fuel | ||||||
19 | costs, will be developed based on the inputs provided | ||||||
20 | by duly licensed engineering and construction firms | ||||||
21 | performing the construction cost quote, potential | ||||||
22 | vendors under long-term service agreements and plant | ||||||
23 | operating agreements, or recognized third party plant | ||||||
24 | operator or operators. | ||||||
25 | The operating and maintenance cost quote | ||||||
26 | (including the cost of the front end engineering and |
| |||||||
| |||||||
1 | design study) shall be expressed in nominal dollars as | ||||||
2 | of the date that the quote is prepared and shall | ||||||
3 | include taxes, insurance, and other owner's costs, and | ||||||
4 | an assumed escalation in materials and labor beyond the | ||||||
5 | date as of which the operating and maintenance cost | ||||||
6 | quote is expressed. | ||||||
7 | (D) The facility cost report shall also include an | ||||||
8 | analysis of the initial clean coal facility's ability | ||||||
9 | to deliver power and energy into the applicable | ||||||
10 | regional transmission organization markets and an | ||||||
11 | analysis of the expected capacity factor for the | ||||||
12 | initial clean coal facility. | ||||||
13 | (E) Amounts paid to third parties unrelated to the | ||||||
14 | owner or owners of the initial clean coal facility to | ||||||
15 | prepare the core plant construction cost quote, | ||||||
16 | including the front end engineering and design study, | ||||||
17 | and the operating and maintenance cost quote will be | ||||||
18 | reimbursed through Coal Development Bonds. | ||||||
19 | (5) Re-powering and retrofitting coal-fired power | ||||||
20 | plants previously owned by Illinois utilities to qualify as | ||||||
21 | clean coal facilities. During the 2009 procurement | ||||||
22 | planning process and thereafter, the Agency and the | ||||||
23 | Commission shall consider sourcing agreements covering | ||||||
24 | electricity generated by power plants that were previously | ||||||
25 | owned by Illinois utilities and that have been or will be | ||||||
26 | converted into clean coal facilities, as defined by Section |
| |||||||
| |||||||
1 | 1-10 of this Act. Pursuant to such procurement planning | ||||||
2 | process, the owners of such facilities may propose to the | ||||||
3 | Agency sourcing agreements with utilities and alternative | ||||||
4 | retail electric suppliers required to comply with | ||||||
5 | subsection (d) of this Section and item (5) of subsection | ||||||
6 | (d) of Section 16-115 of the Public Utilities Act, covering | ||||||
7 | electricity generated by such facilities. In the case of | ||||||
8 | sourcing agreements that are power purchase agreements, | ||||||
9 | the contract price for electricity sales shall be | ||||||
10 | established on a cost of service basis. In the case of | ||||||
11 | sourcing agreements that are contracts for differences, | ||||||
12 | the contract price from which the reference price is | ||||||
13 | subtracted shall be established on a cost of service basis. | ||||||
14 | The Agency and the Commission may approve any such utility | ||||||
15 | sourcing agreements that do not exceed cost-based | ||||||
16 | benchmarks developed by the procurement administrator, in | ||||||
17 | consultation with the Commission staff, Agency staff and | ||||||
18 | the procurement monitor, subject to Commission review and | ||||||
19 | approval. The Commission shall have authority to inspect | ||||||
20 | all books and records associated with these clean coal | ||||||
21 | facilities during the term of any such contract. | ||||||
22 | (5.5) In order to promote the development of clean coal | ||||||
23 | power generation, and in furtherance of the State's goal of | ||||||
24 | having at least 25% of the State's electricity generated by | ||||||
25 | cost-effective clean coal facilities by January 1, 2025 as | ||||||
26 | provided in paragraph (1) of this subsection (d), the |
| |||||||
| |||||||
1 | Agency and Commission shall include sourcing agreements | ||||||
2 | covering power produced by clean coal facilities, as | ||||||
3 | defined in Section 1-10, in each annual power procurement | ||||||
4 | plan. | ||||||
5 | The Agency and Commission shall require electric | ||||||
6 | utilities to enter into such sourcing agreements as part of | ||||||
7 | the annual power procurement process. The electric | ||||||
8 | utilities shall assess a non-bypassable charge to | ||||||
9 | alternative retail electric suppliers for the recovery of | ||||||
10 | sourcing agreement costs, with such costs commensurate | ||||||
11 | with the share of retail customer load served by individual | ||||||
12 | alternative retail electric suppliers. | ||||||
13 | The Agency and Commission shall establish a | ||||||
14 | competitive procedure to solicit and receive proposed | ||||||
15 | sourcing terms from producers of clean coal power | ||||||
16 | interested in selection for sourcing agreements. The | ||||||
17 | competitive procedure shall include a method of selection | ||||||
18 | for inclusion in those agreements. | ||||||
19 | Electric utilities shall enter into sourcing | ||||||
20 | agreements with clean coal facilities in an amount | ||||||
21 | sufficient to cover all of the output of such facilities, | ||||||
22 | subject to the limitations of paragraph (2) of this | ||||||
23 | subsection (d). Electric utilities may file tariffs for the | ||||||
24 | recovery of those costs from their eligible retail | ||||||
25 | customers and hourly pricing customers, with such costs | ||||||
26 | commensurate with the share of retail customer load |
| |||||||
| |||||||
1 | represented by those customers. | ||||||
2 | These sourcing agreements shall be subject to the | ||||||
3 | limits contained in items (A) through (E) of paragraph (2) | ||||||
4 | of this subsection (d) and the benchmarks as set forth by | ||||||
5 | paragraph (1) of this subsection (d). | ||||||
6 | The Commission shall have authority to inspect all | ||||||
7 | books and records associated with these clean coal | ||||||
8 | facilities during the term of any such contract. | ||||||
9 | As part of the annual procurement planning process, the | ||||||
10 | owners of clean coal facilities may offer proposals to the | ||||||
11 | Agency for sourcing agreements with electric utilities | ||||||
12 | required to comply with this subsection (d) covering | ||||||
13 | electricity generated by such facilities. In the case of | ||||||
14 | sourcing agreements that are power purchase agreements, | ||||||
15 | the contract price for electricity sales shall be | ||||||
16 | established on a cost-of-service basis. In the case of | ||||||
17 | sourcing agreements that are contracts for differences, | ||||||
18 | the contract price from which the reference price is | ||||||
19 | subtracted shall be established on a cost-of-service | ||||||
20 | basis. The sourcing agreements shall be included under and | ||||||
21 | governed by provisions of the Public Utilities Act. | ||||||
22 | (6) Costs incurred under this subsection (d) or | ||||||
23 | pursuant to a contract entered into under this subsection | ||||||
24 | (d) shall be deemed prudently incurred and reasonable in | ||||||
25 | amount and the electric utility shall be entitled to full | ||||||
26 | cost recovery pursuant to the tariffs filed with the |
| |||||||
| |||||||
1 | Commission. | ||||||
2 | (d-5) Zero emission standard. | ||||||
3 | (1) Beginning with the delivery year commencing on June | ||||||
4 | 1, 2017, the Agency shall, for electric utilities that | ||||||
5 | serve at least 100,000 retail customers in this State, | ||||||
6 | procure contracts with zero emission facilities that are | ||||||
7 | reasonably capable of generating cost-effective zero | ||||||
8 | emission credits in an amount approximately equal to 16% of | ||||||
9 | the actual amount of electricity delivered by each electric | ||||||
10 | utility to retail customers in the State during calendar | ||||||
11 | year 2014. For an electric utility serving fewer than | ||||||
12 | 100,000 retail customers in this State that requested, | ||||||
13 | under Section 16-111.5 of the Public Utilities Act, that | ||||||
14 | the Agency procure power and energy for all or a portion of | ||||||
15 | the utility's Illinois load for the delivery year | ||||||
16 | commencing June 1, 2016, the Agency shall procure contracts | ||||||
17 | with zero emission facilities that are reasonably capable | ||||||
18 | of generating cost-effective zero emission credits in an | ||||||
19 | amount approximately equal to 16% of the portion of power | ||||||
20 | and energy to be procured by the Agency for the utility. | ||||||
21 | The duration of the contracts procured under this | ||||||
22 | subsection (d-5) shall be for a term of 10 years ending May | ||||||
23 | 31, 2027. The quantity of zero emission credits to be | ||||||
24 | procured under the contracts shall be all of the zero | ||||||
25 | emission credits generated by the zero emission facility in | ||||||
26 | each delivery year; however, if the zero emission facility |
| |||||||
| |||||||
1 | is owned by more than one entity, then the quantity of zero | ||||||
2 | emission credits to be procured under the contracts shall | ||||||
3 | be the amount of zero emission credits that are generated | ||||||
4 | from the portion of the zero emission facility that is | ||||||
5 | owned by the winning supplier. | ||||||
6 | The 16% value identified in this paragraph (1) is the | ||||||
7 | average of the percentage targets in subparagraph (B) of | ||||||
8 | paragraph (1) of subsection (c) of Section 1-75 of this Act | ||||||
9 | for the 5 delivery years beginning June 1, 2017. | ||||||
10 | The procurement process shall be subject to the | ||||||
11 | following provisions: | ||||||
12 | (A) Those zero emission facilities that intend to | ||||||
13 | participate in the procurement shall submit to the | ||||||
14 | Agency the following eligibility information for each | ||||||
15 | zero emission facility on or before the date | ||||||
16 | established by the Agency: | ||||||
17 | (i) the in-service date and remaining useful | ||||||
18 | life of the zero emission facility; | ||||||
19 | (ii) the amount of power generated annually | ||||||
20 | for each of the years 2005 through 2015, and the | ||||||
21 | projected zero emission credits to be generated | ||||||
22 | over the remaining useful life of the zero emission | ||||||
23 | facility, which shall be used to determine the | ||||||
24 | capability of each facility; | ||||||
25 | (iii) the annual zero emission facility cost | ||||||
26 | projections, expressed on a per megawatthour |
| |||||||
| |||||||
1 | basis, over the next 6 delivery years, which shall | ||||||
2 | include the following: operation and maintenance | ||||||
3 | expenses; fully allocated overhead costs, which | ||||||
4 | shall be allocated using the methodology developed | ||||||
5 | by the Institute for Nuclear Power Operations; | ||||||
6 | fuel expenditures; non-fuel capital expenditures; | ||||||
7 | spent fuel expenditures; a return on working | ||||||
8 | capital; the cost of operational and market risks | ||||||
9 | that could be avoided by ceasing operation; and any | ||||||
10 | other costs necessary for continued operations, | ||||||
11 | provided that "necessary" means, for purposes of | ||||||
12 | this item (iii), that the costs could reasonably be | ||||||
13 | avoided only by ceasing operations of the zero | ||||||
14 | emission facility; and | ||||||
15 | (iv) a commitment to continue operating, for | ||||||
16 | the duration of the contract or contracts executed | ||||||
17 | under the procurement held under this subsection | ||||||
18 | (d-5), the zero emission facility that produces | ||||||
19 | the zero emission credits to be procured in the | ||||||
20 | procurement. | ||||||
21 | The information described in item (iii) of this | ||||||
22 | subparagraph (A) may be submitted on a confidential basis | ||||||
23 | and shall be treated and maintained by the Agency, the | ||||||
24 | procurement administrator, and the Commission as | ||||||
25 | confidential and proprietary and exempt from disclosure | ||||||
26 | under subparagraphs (a) and (g) of paragraph (1) of Section |
| |||||||
| |||||||
1 | 7 of the Freedom of Information Act. The Office of Attorney | ||||||
2 | General shall have access to, and maintain the | ||||||
3 | confidentiality of, such information pursuant to Section | ||||||
4 | 6.5 of the Attorney General Act. | ||||||
5 | (B) The price for each zero emission credit | ||||||
6 | procured under this subsection (d-5) for each delivery | ||||||
7 | year shall be in an amount that equals the Social Cost | ||||||
8 | of Carbon, expressed on a price per megawatthour basis. | ||||||
9 | However, to ensure that the procurement remains | ||||||
10 | affordable to retail customers in this State if | ||||||
11 | electricity prices increase, the price in an | ||||||
12 | applicable delivery year shall be reduced below the | ||||||
13 | Social Cost of Carbon by the amount ("Price | ||||||
14 | Adjustment") by which the market price index for the | ||||||
15 | applicable delivery year exceeds the baseline market | ||||||
16 | price index for the consecutive 12-month period ending | ||||||
17 | May 31, 2016. If the Price Adjustment is greater than | ||||||
18 | or equal to the Social Cost of Carbon in an applicable | ||||||
19 | delivery year, then no payments shall be due in that | ||||||
20 | delivery year. The components of this calculation are | ||||||
21 | defined as follows: | ||||||
22 | (i) Social Cost of Carbon: The Social Cost of | ||||||
23 | Carbon is $16.50 per megawatthour, which is based | ||||||
24 | on the U.S. Interagency Working Group on Social | ||||||
25 | Cost of Carbon's price in the August 2016 Technical | ||||||
26 | Update using a 3% discount rate, adjusted for |
| |||||||
| |||||||
1 | inflation for each year of the program. Beginning | ||||||
2 | with the delivery year commencing June 1, 2023, the | ||||||
3 | price per megawatthour shall increase by $1 per | ||||||
4 | megawatthour, and continue to increase by an | ||||||
5 | additional $1 per megawatthour each delivery year | ||||||
6 | thereafter. | ||||||
7 | (ii) Baseline market price index: The baseline | ||||||
8 | market price index for the consecutive 12-month | ||||||
9 | period ending May 31, 2016 is $31.40 per | ||||||
10 | megawatthour, which is based on the sum of (aa) the | ||||||
11 | average day-ahead energy price across all hours of | ||||||
12 | such 12-month period at the PJM Interconnection | ||||||
13 | LLC Northern Illinois Hub, (bb) 50% multiplied by | ||||||
14 | the Base Residual Auction, or its successor, | ||||||
15 | capacity price for the rest of the RTO zone group | ||||||
16 | determined by PJM Interconnection LLC, divided by | ||||||
17 | 24 hours per day, and (cc) 50% multiplied by the | ||||||
18 | Planning Resource Auction, or its successor, | ||||||
19 | capacity price for Zone 4 determined by the | ||||||
20 | Midcontinent Independent System Operator, Inc., | ||||||
21 | divided by 24 hours per day. | ||||||
22 | (iii) Market price index: The market price | ||||||
23 | index for a delivery year shall be the sum of | ||||||
24 | projected energy prices and projected capacity | ||||||
25 | prices determined as follows: | ||||||
26 | (aa) Projected energy prices: the |
| |||||||
| |||||||
1 | projected energy prices for the applicable | ||||||
2 | delivery year shall be calculated once for the | ||||||
3 | year using the forward market price for the PJM | ||||||
4 | Interconnection, LLC Northern Illinois Hub. | ||||||
5 | The forward market price shall be calculated as | ||||||
6 | follows: the energy forward prices for each | ||||||
7 | month of the applicable delivery year averaged | ||||||
8 | for each trade date during the calendar year | ||||||
9 | immediately preceding that delivery year to | ||||||
10 | produce a single energy forward price for the | ||||||
11 | delivery year. The forward market price | ||||||
12 | calculation shall use data published by the | ||||||
13 | Intercontinental Exchange, or its successor. | ||||||
14 | (bb) Projected capacity prices: | ||||||
15 | (I) For the delivery years commencing | ||||||
16 | June 1, 2017, June 1, 2018, and June 1, | ||||||
17 | 2019, the projected capacity price shall | ||||||
18 | be equal to the sum of (1) 50% multiplied | ||||||
19 | by the Base Residual Auction, or its | ||||||
20 | successor, price for the rest of the RTO | ||||||
21 | zone group as determined by PJM | ||||||
22 | Interconnection LLC, divided by 24 hours | ||||||
23 | per day and, (2) 50% multiplied by the | ||||||
24 | resource auction price determined in the | ||||||
25 | resource auction administered by the | ||||||
26 | Midcontinent Independent System Operator, |
| |||||||
| |||||||
1 | Inc., in which the largest percentage of | ||||||
2 | load cleared for Local Resource Zone 4, | ||||||
3 | divided by 24 hours per day, and where such | ||||||
4 | price is determined by the Midcontinent | ||||||
5 | Independent System Operator, Inc. | ||||||
6 | (II) For the delivery year commencing | ||||||
7 | June 1, 2020, and each year thereafter, the | ||||||
8 | projected capacity price shall be equal to | ||||||
9 | the sum of (1) 50% multiplied by the Base | ||||||
10 | Residual Auction, or its successor, price | ||||||
11 | for the ComEd zone as determined by PJM | ||||||
12 | Interconnection LLC, divided by 24 hours | ||||||
13 | per day, and (2) 50% multiplied by the | ||||||
14 | resource auction price determined in the | ||||||
15 | resource auction administered by the | ||||||
16 | Midcontinent Independent System Operator, | ||||||
17 | Inc., in which the largest percentage of | ||||||
18 | load cleared for Local Resource Zone 4, | ||||||
19 | divided by 24 hours per day, and where such | ||||||
20 | price is determined by the Midcontinent | ||||||
21 | Independent System Operator, Inc. | ||||||
22 | For purposes of this subsection (d-5): | ||||||
23 | "Rest of the RTO" and "ComEd Zone" shall have | ||||||
24 | the meaning ascribed to them by PJM | ||||||
25 | Interconnection, LLC. | ||||||
26 | "RTO" means regional transmission |
| |||||||
| |||||||
1 | organization. | ||||||
2 | (C) No later than 45 days after June 1, 2017 ( the | ||||||
3 | effective date of Public Act 99-906) this amendatory | ||||||
4 | Act of the 99th General Assembly , the Agency shall | ||||||
5 | publish its proposed zero emission standard | ||||||
6 | procurement plan. The plan shall be consistent with the | ||||||
7 | provisions of this paragraph (1) and shall provide that | ||||||
8 | winning bids shall be selected based on public interest | ||||||
9 | criteria that include, but are not limited to, | ||||||
10 | minimizing carbon dioxide emissions that result from | ||||||
11 | electricity consumed in Illinois and minimizing sulfur | ||||||
12 | 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 this | ||||||
19 | amendatory Act of the 99th General Assembly and would | ||||||
20 | cease to exist if the procurements were not held, | ||||||
21 | including the preservation of zero emission | ||||||
22 | facilities. The plan shall also describe in detail how | ||||||
23 | each public interest factor shall be considered and | ||||||
24 | weighted in the bid selection process to ensure that | ||||||
25 | the public interest criteria are applied to the | ||||||
26 | procurement and given full effect. |
| |||||||
| |||||||
1 | For purposes of developing the plan, the Agency | ||||||
2 | shall consider any reports issued by a State agency, | ||||||
3 | board, or commission under House Resolution 1146 of the | ||||||
4 | 98th General Assembly and paragraph (4) of subsection | ||||||
5 | (d) of Section 1-75 of this Act, as well as publicly | ||||||
6 | available analyses and studies performed by or for | ||||||
7 | regional transmission organizations that serve the | ||||||
8 | State and their independent market monitors. | ||||||
9 | Upon publishing of the zero emission standard | ||||||
10 | procurement plan, copies of the plan shall be posted | ||||||
11 | and made publicly available on the Agency's website. | ||||||
12 | All interested parties shall have 10 days following the | ||||||
13 | date of posting to provide comment to the Agency on the | ||||||
14 | plan. All comments shall be posted to the Agency's | ||||||
15 | website. Following the end of the comment period, but | ||||||
16 | no more than 60 days later than June 1, 2017 ( the | ||||||
17 | effective date of Public Act 99-906) this amendatory | ||||||
18 | Act of the 99th General Assembly , the Agency shall | ||||||
19 | revise the plan as necessary based on the comments | ||||||
20 | received and file its zero emission standard | ||||||
21 | procurement plan with the Commission. | ||||||
22 | If the Commission determines that the plan will | ||||||
23 | result in the procurement of cost-effective zero | ||||||
24 | emission credits, then the Commission shall, after | ||||||
25 | notice and hearing, but no later than 45 days after the | ||||||
26 | Agency filed the plan, approve the plan or approve with |
| |||||||
| |||||||
1 | modification. For purposes of this subsection (d-5), | ||||||
2 | "cost effective" means the projected costs of | ||||||
3 | procuring zero emission credits from zero emission | ||||||
4 | facilities do not cause the limit stated in paragraph | ||||||
5 | (2) of this subsection to be exceeded. | ||||||
6 | (C-5) As part of the Commission's review and | ||||||
7 | acceptance or rejection of the procurement results, | ||||||
8 | the Commission shall, in its public notice of | ||||||
9 | successful bidders: | ||||||
10 | (i) identify how the winning bids satisfy the | ||||||
11 | public interest criteria described in subparagraph | ||||||
12 | (C) of this paragraph (1) of minimizing carbon | ||||||
13 | dioxide emissions that result from electricity | ||||||
14 | consumed in Illinois and minimizing sulfur | ||||||
15 | dioxide, nitrogen oxide, and particulate matter | ||||||
16 | emissions that adversely affect the citizens of | ||||||
17 | this State; | ||||||
18 | (ii) specifically address how the selection of | ||||||
19 | winning bids takes into account the incremental | ||||||
20 | environmental benefits resulting from the | ||||||
21 | procurement, including any existing environmental | ||||||
22 | benefits that are preserved by the procurements | ||||||
23 | held under Public Act 99-906 this amendatory Act of | ||||||
24 | the 99th General Assembly and would have ceased to | ||||||
25 | exist if the procurements had not been held, such | ||||||
26 | as the preservation of zero emission facilities; |
| |||||||
| |||||||
1 | (iii) quantify the environmental benefit of | ||||||
2 | preserving the resources identified in item (ii) | ||||||
3 | of this subparagraph (C-5), including the | ||||||
4 | following: | ||||||
5 | (aa) the value of avoided greenhouse gas | ||||||
6 | emissions measured as the product of the zero | ||||||
7 | emission facilities' output over the contract | ||||||
8 | term multiplied by the U.S. Environmental | ||||||
9 | Protection Agency eGrid subregion carbon | ||||||
10 | dioxide emission rate and the U.S. Interagency | ||||||
11 | Working Group on Social Cost of Carbon's price | ||||||
12 | in the August 2016 Technical Update using a 3% | ||||||
13 | discount rate, adjusted for inflation for each | ||||||
14 | delivery year; and | ||||||
15 | (bb) the costs of replacement with other | ||||||
16 | zero carbon dioxide resources, including wind | ||||||
17 | and photovoltaic, based upon the simple | ||||||
18 | average of the following: | ||||||
19 | (I) the price, or if there is more than | ||||||
20 | one price, the average of the prices, paid | ||||||
21 | for renewable energy credits from new | ||||||
22 | utility-scale wind projects in the | ||||||
23 | procurement events specified in item (i) | ||||||
24 | of subparagraph (G) of paragraph (1) of | ||||||
25 | subsection (c) of Section 1-75 of this Act; | ||||||
26 | and |
| |||||||
| |||||||
1 | (II) the price, or if there is more | ||||||
2 | than one price, the average of the prices, | ||||||
3 | paid for renewable energy credits from new | ||||||
4 | utility-scale solar projects and | ||||||
5 | brownfield site photovoltaic projects in | ||||||
6 | the procurement events specified in item | ||||||
7 | (ii) of subparagraph (G) of paragraph (1) | ||||||
8 | of subsection (c) of Section 1-75 of this | ||||||
9 | Act and, after January 1, 2015, renewable | ||||||
10 | energy credits from photovoltaic | ||||||
11 | distributed generation projects in | ||||||
12 | procurement events held under subsection | ||||||
13 | (c) of Section 1-75 of this Act. | ||||||
14 | Each utility shall enter into binding contractual | ||||||
15 | arrangements with the winning suppliers. | ||||||
16 | The procurement described in this subsection | ||||||
17 | (d-5), including, but not limited to, the execution of | ||||||
18 | all contracts procured, shall be completed no later | ||||||
19 | than May 10, 2017. Based on the effective date of | ||||||
20 | Public Act 99-906 this amendatory Act of the 99th | ||||||
21 | General Assembly , the Agency and Commission may, as | ||||||
22 | appropriate, modify the various dates and timelines | ||||||
23 | under this subparagraph and subparagraphs (C) and (D) | ||||||
24 | of this paragraph (1). The procurement and plan | ||||||
25 | approval processes required by this subsection (d-5) | ||||||
26 | shall be conducted in conjunction with the procurement |
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| |||||||
1 | and plan approval processes required by subsection (c) | ||||||
2 | of this Section and Section 16-111.5 of the Public | ||||||
3 | Utilities Act, to the extent practicable. | ||||||
4 | Notwithstanding whether a procurement event is | ||||||
5 | conducted under Section 16-111.5 of the Public | ||||||
6 | Utilities Act, the Agency shall immediately initiate a | ||||||
7 | procurement process on June 1, 2017 ( the effective date | ||||||
8 | of Public Act 99-906) this amendatory Act of the 99th | ||||||
9 | General Assembly . | ||||||
10 | (D) Following the procurement event described in | ||||||
11 | this paragraph (1) and consistent with subparagraph | ||||||
12 | (B) of this paragraph (1), the Agency shall calculate | ||||||
13 | the payments to be made under each contract for the | ||||||
14 | next delivery year based on the market price index for | ||||||
15 | that delivery year. The Agency shall publish the | ||||||
16 | payment calculations no later than May 25, 2017 and | ||||||
17 | every May 25 thereafter. | ||||||
18 | (E) Notwithstanding the requirements of this | ||||||
19 | subsection (d-5), the contracts executed under this | ||||||
20 | subsection (d-5) shall provide that the zero emission | ||||||
21 | facility may, as applicable, suspend or terminate | ||||||
22 | performance under the contracts in the following | ||||||
23 | instances: | ||||||
24 | (i) A zero emission facility shall be excused | ||||||
25 | from its performance under the contract for any | ||||||
26 | cause beyond the control of the resource, |
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| |||||||
1 | including, but not restricted to, acts of God, | ||||||
2 | flood, drought, earthquake, storm, fire, | ||||||
3 | lightning, epidemic, war, riot, civil disturbance | ||||||
4 | or disobedience, labor dispute, labor or material | ||||||
5 | shortage, sabotage, acts of public enemy, | ||||||
6 | explosions, orders, regulations or restrictions | ||||||
7 | imposed by governmental, military, or lawfully | ||||||
8 | established civilian authorities, which, in any of | ||||||
9 | the foregoing cases, by exercise of commercially | ||||||
10 | reasonable efforts the zero emission facility | ||||||
11 | could not reasonably have been expected to avoid, | ||||||
12 | and which, by the exercise of commercially | ||||||
13 | reasonable efforts, it has been unable to | ||||||
14 | overcome. In such event, the zero emission | ||||||
15 | facility shall be excused from performance for the | ||||||
16 | duration of the event, including, but not limited | ||||||
17 | to, delivery of zero emission credits, and no | ||||||
18 | payment shall be due to the zero emission facility | ||||||
19 | during the duration of the event. | ||||||
20 | (ii) A zero emission facility shall be | ||||||
21 | permitted to terminate the contract if legislation | ||||||
22 | is enacted into law by the General Assembly that | ||||||
23 | imposes or authorizes a new tax, special | ||||||
24 | assessment, or fee on the generation of | ||||||
25 | electricity, the ownership or leasehold of a | ||||||
26 | generating unit, or the privilege or occupation of |
| |||||||
| |||||||
1 | such generation, ownership, or leasehold of | ||||||
2 | generation units by a zero emission facility. | ||||||
3 | However, the provisions of this item (ii) do not | ||||||
4 | apply to any generally applicable tax, special | ||||||
5 | assessment or fee, or requirements imposed by | ||||||
6 | federal law. | ||||||
7 | (iii) A zero emission facility shall be | ||||||
8 | permitted to terminate the contract in the event | ||||||
9 | that the resource requires capital expenditures in | ||||||
10 | excess of $40,000,000 that were neither known nor | ||||||
11 | reasonably foreseeable at the time it executed the | ||||||
12 | contract and that a prudent owner or operator of | ||||||
13 | such resource would not undertake. | ||||||
14 | (iv) A zero emission facility shall be | ||||||
15 | permitted to terminate the contract in the event | ||||||
16 | the Nuclear Regulatory Commission terminates the | ||||||
17 | resource's license. | ||||||
18 | (F) If the zero emission facility elects to | ||||||
19 | terminate a contract under this subparagraph (E, of | ||||||
20 | this paragraph (1), then the Commission shall reopen | ||||||
21 | the docket in which the Commission approved the zero | ||||||
22 | emission standard procurement plan under subparagraph | ||||||
23 | (C) of this paragraph (1) and, after notice and | ||||||
24 | hearing, enter an order acknowledging the contract | ||||||
25 | termination election if such termination is consistent | ||||||
26 | with the provisions of this subsection (d-5). |
| |||||||
| |||||||
1 | (2) For purposes of this subsection (d-5), the amount | ||||||
2 | paid per kilowatthour means the total amount paid for | ||||||
3 | electric service expressed on a per kilowatthour basis. For | ||||||
4 | purposes of this subsection (d-5), the total amount paid | ||||||
5 | for electric service includes, without limitation, amounts | ||||||
6 | paid for supply, transmission, distribution, surcharges, | ||||||
7 | and add-on taxes. | ||||||
8 | Notwithstanding the requirements of this subsection | ||||||
9 | (d-5), the contracts executed under this subsection (d-5) | ||||||
10 | shall provide that the total of zero emission credits | ||||||
11 | procured under a procurement plan shall be subject to the | ||||||
12 | limitations of this paragraph (2). For each delivery year, | ||||||
13 | the contractual volume receiving payments in such year | ||||||
14 | shall be reduced for all retail customers based on the | ||||||
15 | amount necessary to limit the net increase that delivery | ||||||
16 | year to the costs of those credits included in the amounts | ||||||
17 | paid by eligible retail customers in connection with | ||||||
18 | electric service to no more than 1.65% of the amount paid | ||||||
19 | per kilowatthour by eligible retail customers during the | ||||||
20 | year ending May 31, 2009. The result of this computation | ||||||
21 | shall apply to and reduce the procurement for all retail | ||||||
22 | customers, and all those customers shall pay the same | ||||||
23 | single, uniform cents per kilowatthour charge under | ||||||
24 | subsection (k) of Section 16-108 of the Public Utilities | ||||||
25 | Act. To arrive at a maximum dollar amount of zero emission | ||||||
26 | credits to be paid for the particular delivery year, the |
| |||||||
| |||||||
1 | resulting per kilowatthour amount shall be applied to the | ||||||
2 | actual amount of kilowatthours of electricity delivered by | ||||||
3 | the electric utility in the delivery year immediately prior | ||||||
4 | to the procurement, to all retail customers in its service | ||||||
5 | territory. Unpaid contractual volume for any delivery year | ||||||
6 | shall be paid in any subsequent delivery year in which such | ||||||
7 | payments can be made without exceeding the amount specified | ||||||
8 | in this paragraph (2). The calculations required by this | ||||||
9 | paragraph (2) shall be made only once for each procurement | ||||||
10 | plan year. Once the determination as to the amount of zero | ||||||
11 | emission credits to be paid is made based on the | ||||||
12 | calculations set forth in this paragraph (2), no subsequent | ||||||
13 | rate impact determinations shall be made and no adjustments | ||||||
14 | to those contract amounts shall be allowed. All costs | ||||||
15 | incurred under those contracts and in implementing this | ||||||
16 | subsection (d-5) shall be recovered by the electric utility | ||||||
17 | as provided in this Section. | ||||||
18 | No later than June 30, 2019, the Commission shall | ||||||
19 | review the limitation on the amount of zero emission | ||||||
20 | credits procured under this subsection (d-5) and report to | ||||||
21 | the General Assembly its findings as to whether that | ||||||
22 | limitation unduly constrains the procurement of | ||||||
23 | cost-effective zero emission credits. | ||||||
24 | (3) Six years after the execution of a contract under | ||||||
25 | this subsection (d-5), the Agency shall determine whether | ||||||
26 | the actual zero emission credit payments received by the |
| |||||||
| |||||||
1 | supplier over the 6-year period exceed the Average ZEC | ||||||
2 | Payment. In addition, at the end of the term of a contract | ||||||
3 | executed under this subsection (d-5), or at the time, if | ||||||
4 | any, a zero emission facility's contract is terminated | ||||||
5 | under subparagraph (E) of paragraph (1) of this subsection | ||||||
6 | (d-5), then the Agency shall determine whether the actual | ||||||
7 | zero emission credit payments received by the supplier over | ||||||
8 | the term of the contract exceed the Average ZEC Payment, | ||||||
9 | after taking into account any amounts previously credited | ||||||
10 | back to the utility under this paragraph (3). If the Agency | ||||||
11 | determines that the actual zero emission credit payments | ||||||
12 | received by the supplier over the relevant period exceed | ||||||
13 | the Average ZEC Payment, then the supplier shall credit the | ||||||
14 | difference back to the utility. The amount of the credit | ||||||
15 | shall be remitted to the applicable electric utility no | ||||||
16 | later than 120 days after the Agency's determination, which | ||||||
17 | the utility shall reflect as a credit on its retail | ||||||
18 | customer bills as soon as practicable; however, the credit | ||||||
19 | remitted to the utility shall not exceed the total amount | ||||||
20 | of payments received by the facility under its contract. | ||||||
21 | For purposes of this Section, the Average ZEC Payment | ||||||
22 | shall be calculated by multiplying the quantity of zero | ||||||
23 | emission credits delivered under the contract times the | ||||||
24 | average contract price. The average contract price shall be | ||||||
25 | determined by subtracting the amount calculated under | ||||||
26 | subparagraph (B) of this paragraph (3) from the amount |
| |||||||
| |||||||
1 | calculated under subparagraph (A) of this paragraph (3), as | ||||||
2 | follows: | ||||||
3 | (A) The average of the Social Cost of Carbon, as | ||||||
4 | defined in subparagraph (B) of paragraph (1) of this | ||||||
5 | subsection (d-5), during the term of the contract. | ||||||
6 | (B) The average of the market price indices, as | ||||||
7 | defined in subparagraph (B) of paragraph (1) of this | ||||||
8 | subsection (d-5), during the term of the contract, | ||||||
9 | minus the baseline market price index, as defined in | ||||||
10 | subparagraph (B) of paragraph (1) of this subsection | ||||||
11 | (d-5). | ||||||
12 | If the subtraction yields a negative number, then the | ||||||
13 | Average ZEC Payment shall be zero. | ||||||
14 | (4) Cost-effective zero emission credits procured from | ||||||
15 | zero emission facilities shall satisfy the applicable | ||||||
16 | definitions set forth in Section 1-10 of this Act. | ||||||
17 | (5) The electric utility shall retire all zero emission | ||||||
18 | credits used to comply with the requirements of this | ||||||
19 | subsection (d-5). | ||||||
20 | (6) Electric utilities shall be entitled to recover all | ||||||
21 | of the costs associated with the procurement of zero | ||||||
22 | emission credits through an automatic adjustment clause | ||||||
23 | tariff in accordance with subsection (k) and (m) of Section | ||||||
24 | 16-108 of the Public Utilities Act, and the contracts | ||||||
25 | executed under this subsection (d-5) shall provide that the | ||||||
26 | utilities' payment obligations under such contracts shall |
| |||||||
| |||||||
1 | be reduced if an adjustment is required under subsection | ||||||
2 | (m) of Section 16-108 of the Public Utilities Act. | ||||||
3 | (7) This subsection (d-5) shall become inoperative on | ||||||
4 | January 1, 2028. | ||||||
5 | (e) The draft procurement plans are subject to public | ||||||
6 | comment, as required by Section 16-111.5 of the Public | ||||||
7 | Utilities Act. | ||||||
8 | (f) The Agency shall submit the final procurement plan to | ||||||
9 | the Commission. The Agency shall revise a procurement plan if | ||||||
10 | the Commission determines that it does not meet the standards | ||||||
11 | set forth in Section 16-111.5 of the Public Utilities Act. | ||||||
12 | (g) The Agency shall assess fees to each affected utility | ||||||
13 | to recover the costs incurred in preparation of the annual | ||||||
14 | procurement plan for the utility. | ||||||
15 | (h) The Agency shall assess fees to each bidder to recover | ||||||
16 | the costs incurred in connection with a competitive procurement | ||||||
17 | process.
| ||||||
18 | (i) A renewable energy credit, carbon emission credit, or | ||||||
19 | zero emission credit can only be used once to comply with a | ||||||
20 | single portfolio or other standard as set forth in subsection | ||||||
21 | (c), subsection (d), or subsection (d-5) of this Section, | ||||||
22 | respectively. A renewable energy credit, carbon emission | ||||||
23 | credit, or zero emission credit cannot be used to satisfy the | ||||||
24 | requirements of more than one standard. If more than one type | ||||||
25 | of credit is issued for the same megawatt hour of energy, only | ||||||
26 | one credit can be used to satisfy the requirements of a single |
| |||||||
| |||||||
1 | standard. After such use, the credit must be retired together | ||||||
2 | with any other credits issued for the same megawatt hour of | ||||||
3 | energy. | ||||||
4 | (Source: P.A. 98-463, eff. 8-16-13; 99-536, eff. 7-8-16; | ||||||
5 | 99-906, eff. 6-1-17; revised 1-22-18.)
| ||||||
6 | Section 99. Effective date. This Act takes effect June 1, | ||||||
7 | 2018.".
|