Illinois-2019-SB2132-Senate Amendment 001

Sen. Cristina Castro

Filed: 2/28/2019

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1 AMENDMENT TO SENATE BILL 2132

2 AMENDMENT NO. ______. Amend Senate Bill 2132 by replacing

3 everything after the enacting clause with the following:

4 "Article 1.

5 Findings

6 Section 1-5. Findings.

7 (a) The growing clean energy economy in Illinois can be a

8 vehicle for expanding equitable access to public health,

9 safety, a cleaner environment, and quality jobs and economic

10 opportunities, including wealth building, especially since

11 economically disadvantaged communities and communities of

12 color have had to bear the disproportionate burden of dirty

13 fossil fuel pollution.

14 (b) Placing Illinois on a path to 100% renewable energy is

15 vital to a clean energy future. To bring this vision to

16 fruition, our energy policy must prioritize a just transition

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1 that incentivizes renewable development and other

2 carbon-reducing policies, such as energy efficiency, while

3 ensuring that the benefits and opportunities of a carbon-free

4 future are accessible in economically disadvantaged

5 communities, environmental justice communities, and

6 communities of color.

7 (c) In the wake of federal reversals on climate action, the

8 State of Illinois should pursue immediate action on policies

9 that will ensure a just and responsible phase out of fossil

10 fuels from the power sector to reduce harmful emissions from

11 Illinois power plants, support power plant communities and

12 workers, and allow the clean energy economy to continue growing

13 in every corner of Illinois.

14 (d) Energy efficiency should form the basis of any robust

15 clean energy policy. It is the cheapest clean energy resource,

16 and efficiency upgrades help customers manage their energy

17 bills directly by reducing the energy they need, and indirectly

18 by holding demand and prices down statewide.

19 (e) The transportation sector is now the leading source of

20 carbon pollution in Illinois, responsible for roughly

21 one-third of all carbon emissions. The State of Illinois should

22 set forth an ambitious goal to remove the equivalent of 1

23 million gasoline and diesel-powered vehicles from our roads by

24 quickly implementing new policies that expand access to

25 transit, promote walking and biking mobility, and increase

26 electric vehicle adoption. If managed appropriately, electric

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1 vehicle adoption will drastically reduce emissions from

2 transportation, and could save Illinois residents billions of

3 dollars.

4 (f) In addition to better air quality and safer climate,

5 Illinois residents that do not use electric vehicles also

6 benefit from greater adoption through lower electric bills

7 resulting from the greater utilization of the electric grid

8 during off-peak hours.

9 (g) Energy storage, such as batteries, can provide many

10 services to the electricity grid which benefit the grid,

11 including managing (or shaving) peak load, frequency

12 regulation, voltage support, reserve capacity, and black-start

13 capability. And, if that storage facilitates greater

14 utilization of renewables, it can allow for more clean energy

15 to be accessible, reduce pollution, and provide multiple

16 benefits.

17 (h) Illinois needs to adopt a broad-based policy approach

18 to decarbonize Illinois' electric sector (both how much we

19 produce and how much we consume) in a just and equitable way

20 that puts our State on track to phase out emitting power plants

21 by 2030.

22 (i) Illinois' policy approach must ensure the reduction of

23 co-pollutant emissions that cause serious, local health

24 impacts, prioritizing environmental justice communities near

25 power plants.

26 (j) As we decarbonize Illinois' electric sector, Illinois

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1 must create new investment to stimulate the economic and

2 environmental well-being of communities disproportionately

3 impacted by the historical operation of, and recent or expected

4 closures of, fossil fuel power plants.

5 Article 5.

6 Clean Jobs Workforce Hubs Act

7 Section 5-1. Short title. This Article may be cited as the

8 Clean Jobs Workforce Hubs Act. References in this Article to

9 "this Act" mean this Article.

10 Section 5-5. Legislative purpose. The General Assembly

11 finds that the State of Illinois should build upon the success

12 of the Future Energy Jobs Act and the Illinois Solar for All

13 Program by further expanding equitable access to quality jobs

14 and economic opportunities (especially for residents of

15 economically disadvantaged communities, environmental justice

16 communities, communities of color, returning citizens, foster

17 care communities, and other underserved communities who have

18 had to bear the disproportionate burden of dirty fossil fuel

19 pollution) across the entire clean energy sector in Illinois,

20 including solar, wind, energy efficiency, transportation

21 electrification, and other related clean energy industries.

22 Section 5-10. Definitions. As used in this Act:

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1 "Department" means the Department of Commerce and Economic

2 Opportunity.

3 "Director" means the Director of Commerce and Economic

4 Opportunity.

5 "Environmental justice communities" means the proposed

6 definition of that term based on existing methodologies and

7 findings used by the Illinois Power Agency and its

8 Administrator in its Illinois Solar for All Program.

9 "Program" means the Clean Jobs Workforce Hubs Program.

10 Section 5-15. Clean Jobs Workforce Hubs Program. The

11 Department must develop and administer the Clean Jobs Workforce

12 Hubs Program to create a network of frontline organizations

13 across the State that provide direct and sustained support for

14 members of economically disadvantaged communities,

15 environmental justice communities, communities of color,

16 returning citizens, foster care communities, and displaced

17 fossil fuel workers to enter and complete the pipeline for

18 clean energy jobs in solar energy, wind energy, energy

19 efficiency, electric vehicles and related industries. The

20 Clean Jobs Workforce Hubs Program must:

21 (1) leverage frontline organizations to ensure members

22 of disadvantaged communities across the State have

23 dedicated and sustained support to enter and complete the

24 career pipeline for clean energy jobs; and

25 (2) develop formal partnerships between frontline

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1 organizations and trades groups, labor unions, and clean

2 energy employers to ensure Clean Jobs Workforce Hubs

3 Program participants have priority access to

4 pre-apprenticeship, apprenticeship, and other employment

5 opportunities.

6 Section 5-20. Clean Jobs Workforce Hubs Network. The Clean

7 Jobs Workforce Hubs Network, made up of frontline organizations

8 across the State and administered by a Program Administrator,

9 is required to provide the following:

10 (1) community education and outreach about workforce

11 and training opportunities to ensure members of

12 economically disadvantaged communities, environmental

13 justice communities, communities of color, returning

14 citizens, foster care communities, and displaced fossil

15 fuel workers understand clean energy workforce and

16 training opportunities;

17 (2) training, apprenticeship, job readiness, and skill

18 development, including soft skills, math skills, technical

19 skills, and other development needed for members of

20 economically disadvantaged communities, environmental

21 justice communities, communities of color, returning

22 citizens, foster care communities, and displaced fossil

23 fuel workers to enter clean energy-related training and

24 apprenticeship programs and career paths;

25 (3) targeted outreach and recruitment to ensure people

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1 of color are invited, supported, and given preference in

2 applying for both community-based and labor-based training

3 opportunities, including apprenticeship and

4 pre-apprenticeship programs;

5 (4) the development of partnerships with labor

6 organizations to ensure Clean Jobs Workforce Hubs

7 participants are recruited, placed, and supported in

8 labor-based training programs, such as workforce

9 development programs and pre-apprenticeship and

10 apprenticeship programs;

11 (5) a stipend program for Clean Jobs Workforce Hubs

12 participants in clean energy-related training programs and

13 company apprenticeships, including providing funding to

14 assist with transportation, child care, and other needed

15 services and supplies during the length of programs; and

16 (6) direct assistance and counseling to participants

17 in training and apprenticeship programs to help connect

18 trainees to both union and non-union career options with

19 renewable energy companies, energy efficiency companies,

20 and other clean energy employers and to provide a direct

21 resource for industry to identify qualified workers to meet

22 program hiring or subcontracting requirements, including

23 the workforce equity building actions required under

24 Section 1-75 of the Illinois Power Agency Act and Section

25 16-128B of the Public Utilities Act. Placement activities

26 should include outreach to public agencies, utilities, and

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1 clean energy companies, creation of formal partnerships

2 with employers, job interview preparation, and on-the-job

3 support and counseling.

4 Section 5-25. Program Administrator. Within 60 days after

5 the effective date of this Act and after a comprehensive

6 stakeholder process that includes representatives from

7 frontline communities, the Department shall select a Program

8 Administrator, as an individual or an organization, to

9 coordinate the work of all or a portion of the work of the

10 Clean Jobs Workforce Hubs. The Program Administrator shall have

11 strong capabilities in program management, knowledge of

12 industry trends and activities, workforce development best

13 practices, and community development. The Program

14 Administrator shall coordinate the work of all or a portion of

15 the Clean Jobs Workforce Hubs network to ensure consistent

16 execution, performance, partnerships, marketing, and program

17 access across the State.

18 Section 5-30. Clean jobs curriculum.

19 (a) Within 60 days after the effective date of this Act,

20 the Department must convene a comprehensive stakeholder

21 process that includes representatives from the Illinois State

22 Board of Education, the Illinois Community College Board, the

23 Illinois Department of Labor, frontline organizations,

24 workforce development providers, labor unions, building

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1 trades, clean energy employers, including solar industry, wind

2 industry, energy efficiency, and transportation

3 electrification, and other needed participants to identify the

4 career pathways and training curriculum (such as the

5 Multi-Craft Core Curriculum) needed to prepare workers to enter

6 the clean energy field, including solar photovoltaic, solar

7 thermal, wind energy, energy efficiency, site assessment,

8 sales, and back office. Curriculum must also include broad

9 occupational training to provide career entry into the general

10 construction and building trades sector. Within 120 days after

11 the stakeholder process is convened, the Department must

12 publish a report that reflects the findings and core curriculum

13 recommendations developed by the stakeholder group.

14 (b) Organizations that receive funding to provide training

15 under the Clean Jobs Workforce Hubs Program, including

16 community-based and labor-based training providers, must use

17 the core curriculum that is developed under subsection (a).

18 Section 5-35. Administration; rules. The Department shall

19 administer this Act and shall adopt any rules necessary for

20 that purpose.

21 Article 10.

22 Expanding Clean Energy Entrepreneurship Act

23 Section 10-1. Short title. This Article may be cited as the

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1 Expanding Clean Energy Entrepreneurship Act. References in

2 this Article to "this Act" mean this Article.

3 Section 10-5. Legislative purpose. The General Assembly

4 finds that the State of Illinois should build upon the success

5 of the Future Energy Jobs Act and the Illinois Solar for All

6 Program by supporting small, disadvantaged clean energy

7 businesses and contractors having equitable access to economic

8 opportunities created by the growing clean energy sector in

9 Illinois.

10 Section 10-10. Definitions. As used in this Act:

11 "Department" means the Department of Commerce and Economic

12 Opportunity. "Director" means the Director of Commerce and

13 Economic Opportunity.

14 "Disadvantaged businesses and contractors" means an entity

15 defined under Section 2 of the Business Enterprise for

16 Minorities, Women, and Persons with Disabilities Act.

17 "Environmental justice communities" means the proposed

18 definition of that term based on existing methodologies and

19 findings used by the Illinois Power Agency and its

20 Administrator in its Illinois Solar for All Program.

21 "Program" means the Expanding Clean Energy

22 Entrepreneurship and Contractor Incubator Program.

23 Section 10-15. Expanding Clean Energy Entrepreneurship and

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1 Contractor Incubator Program. The Department must develop and

2 administer the Expanding Clean Energy Entrepreneurship and

3 Contractor Incubator Program to support the development of

4 disadvantaged businesses and contractors and provide the

5 needed resources for such businesses to be able to effectively

6 compete for, gain, and execute clean energy-related projects.

7 The Program must provide:

8 (1) Access to low-cost capital for small and

9 disadvantaged clean energy businesses and contractors to

10 be able to complete on a level playing field with more

11 established, capitalized businesses across the entire

12 clean energy sector in Illinois, including solar, wind,

13 energy efficiency, transportation electrification, and

14 other clean energy industries.

15 (2) Support for obtaining the necessary insurance,

16 bonding, back office services, permits, certifications,

17 and other financial assurance requirements needed to

18 effectively compete for clean energy-related projects,

19 incentive programs, and approved vendor and qualified

20 installer opportunities.

21 (3) Development and support needed for disadvantaged

22 clean energy contractors to build their business and

23 connect them to specific projects, Approved Vendor

24 subcontracting and qualified installer opportunities,

25 partnerships, networks, capital, and other resources

26 needed to compete for, gain, and execute clean

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1 energy-related project installation and subcontracts.

2 Section 10-20. Program Administrator. Within 60 days after

3 the effective date of this Act, the Department shall select a

4 Program Administrator, as an individual or an organization, to

5 coordinate the work of all or a portion of the work of the

6 Expanding Clean Energy Entrepreneurship and Contractor

7 Incubator Program. The Program Administrator shall have strong

8 capabilities in program management, knowledge of industry

9 trends and activities, disadvantaged business and contractor

10 development best practices, and related development support.

11 The Program Administrator shall coordinate the work of all or a

12 portion of the Program to ensure consistent execution,

13 performance, partnerships, marketing, and program access

14 across the State.

15 Section 10-25. Administration; rules. The Department shall

16 administer this Act and shall adopt any rules necessary for

17 that purpose.

18 Article 15.

19 Community Energy and Climate Planning Act

20 Section 15-1. Short title. This Article may be cited as the

21 Community Energy and Climate Planning Act. References in this

22 Article to "this Act" mean this Article.

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1 Section 15-5. Legislative purpose. The General Assembly

2 makes the following findings:

3 (1) The health, welfare, and prosperity of Illinois

4 citizens require that Illinois take all steps possible to

5 combat climate change, address harmful environmental

6 impacts deriving from the generation of electricity,

7 ensure affordable utility service, equitable and

8 affordable access to transportation, and clean, safe,

9 affordable housing.

10 (2) The achievement of these goals will depend on

11 strong community engagement to ensure that programs and

12 policy solutions meet the needs of disparate communities.

13 (3) Ensuring that these goals are met without adverse

14 impacts on utility bill affordability, housing

15 affordability, and other essential services will depend on

16 the coordination of policies and programs within local

17 communities.

18 Section 15-10. Definitions. As used in this Act:

19 "Alternative energy improvement" means the installation or

20 upgrade of electrical wiring, outlets, or charging stations to

21 charge a motor vehicle that is fully or partially powered by

22 electricity; photovoltaic, energy storage, or thermal

23 resource; or any combination thereof.

24 "Energy efficiency improvement" means equipment, devices,

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1 or materials intended to decrease energy consumption or promote

2 a more efficient use of electricity, natural gas, propane, or

3 other forms of energy on property, including, but not limited

4 to, all of the following:

5 (1) insulation in walls, roofs, floors, foundations,

6 or heating and cooling distribution systems;

7 (2) storm windows and doors, multi-glazed windows and

8 doors, heat-absorbing or heat-reflective glazed and coated

9 window and door systems, and additional glazing,

10 reductions in glass area, and other window and door system

11 modifications that reduce energy consumption;

12 (3) automated energy control systems;

13 (4) high efficiency heating, ventilating, or

14 air-conditioning and distribution system modifications or

15 replacements;

16 (5) caulking, weather-stripping, and air sealing;

17 (6) replacement or modification of lighting fixtures

18 to reduce the energy use of the lighting system;

19 (7) energy controls or recovery systems;

20 (8) day lighting systems;

21 (9) any energy efficiency project, as defined in

22 Section 825-65 of the Illinois Finance Authority Act; and

23 (10) any other installation or modification of

24 equipment, devices, or materials approved as a utility

25 cost-savings measure by the governing body.

26 "Energy project" means the installation or modification of

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1 an alternative energy improvement, energy efficiency

2 improvement, or water use improvement, or the acquisition,

3 installation, or improvement of a renewable energy system that

4 is affixed to a stabilized existing property (including new

5 construction).

6 "Environmental justice communities" means the proposed

7 definition of that term based on existing methodologies and

8 findings used by the Illinois Power Agency and its

9 Administrator in its Illinois Solar for All Program.

10 "Governing body" means the county board or board of county

11 commissioners of a county, the city council of a city, or the

12 board of trustees of a village.

13 "Local unit of government" means a county, city, or

14 village.

15 "Renewable energy resource" includes energy and its

16 associated renewable energy credit or renewable energy credits

17 from wind energy, solar thermal energy, geothermal energy,

18 photovoltaic cells and panels, biodiesel, anaerobic digestion,

19 and hydropower that does not involve new construction or

20 significant expansion of hydropower dams. For purposes of this

21 Act, landfill gas produced in the State is considered a

22 renewable energy resource. "Renewable energy resource" does

23 not include the incineration or burning of any solid material.

24 "Renewable energy system" means a fixture, product,

25 device, or interacting group of fixtures, products, or devices

26 on the customer's side of the meter that use one or more

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1 renewable energy resources to generate electricity, and

2 specifically includes any renewable energy project, as defined

3 in Section 825-65 of the Illinois Finance Authority Act.

4 "Water use improvement" means any fixture, product,

5 system, device, or interacting group thereof for or serving any

6 property that has the effect of conserving water resources

7 through improved water management, efficiency, or thermal

8 resource.

9 Section 15-15. Community Energy and Climate Plans;

10 creation.

11 (a) Pursuant to the procedures in Section 15-20, a local

12 unit of government may establish Community Energy and Climate

13 Plans and identify boundaries and areas covered by the Plans.

14 (b) Community Energy and Climate Plans are intended to aid

15 local governments develop a comprehensive approach to

16 combining different energy and climate programs and funding

17 resources to achieve complementary impact. An effective

18 planning process shall:

19 (1) help communities discover ways that their local

20 government, businesses, and residents can control their

21 energy use and bills;

22 (2) ensure a cost-effective transition away from

23 fossil fuels in the transportation sector;

24 (3) expand access to workforce development and job

25 training opportunities in the emerging clean energy

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1 economy;

2 (4) promote economic development through improvements

3 in community infrastructure, transit, and support for

4 local business;

5 (5) improve the health of Illinois communities by

6 reducing emissions, addressing existing brownfield areas,

7 and promoting the integration of distributed energy

8 resources;

9 (6) enable greater customer engagement, empowerment,

10 and options for energy services, and ultimately reduce

11 utility bills for Illinoisans;

12 (7) bring the benefits of grid modernization and the

13 deployment of distributed energy resources to economically

14 disadvantaged communities throughout Illinois; and

15 (8) support existing Illinois policy goals promoting

16 energy efficiency, demand response and investments in

17 renewable energy resources.

18 (c) A Community Energy and Climate Plan shall include

19 discussion of:

20 (1) the demographics of the community, including

21 information on the mix of residential and commercial areas

22 and populations, ages, languages, education and workforce

23 training. This includes an examination of the average

24 utility bills paid within the community by class and census

25 area, the percentage and locations of individuals

26 requiring energy assistance, participation of community

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1 members in other assistance programs. This also includes an

2 examination of the community's energy use, both for

3 electricity, natural gas, and transportation and other

4 fuels;

5 (2) the geography of the community, including the

6 amount of green space, brownfield sites, open space for

7 potential development, location of critical infrastructure

8 such as emergency response facilities, health care and

9 education facilities, and public transportation routes;

10 and

11 (3) information on economic development opportunities,

12 commercial usage, and employment opportunities.

13 (d) A Community Energy and Climate Plan shall address the

14 following areas:

15 (1) distributed energy resources, including energy

16 efficiency, demand response, dynamic pricing, energy

17 storage, solar (thermal, rooftop, and community);

18 (2) building codes (both commercial and residential);

19 (3) vehicle miles traveled; and

20 (4) transit options, including individual car

21 ownership, ride sharing, buses, trains, bicycles, and

22 pedestrian walkways.

23 (e) A Community Energy and Climate Plan will conclude with

24 proposals to:

25 (1) increase the use of electricity as a transportation

26 fuel at multi-unit dwellings;

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1 (2) maximize the system-wide benefits of

2 transportation electrification;

3 (3) test innovative load management programs or rate

4 structures associated with the use of electric vehicles by

5 residential customers to achieve customer fuel cost

6 savings relative to gasoline or diesel fuels and to

7 optimize grid efficiency;

8 (4) increase the integration of distributed energy

9 resources in the community;

10 (5) significantly expand the percentage of net-zero

11 housing and net-zero buildings in the community;

12 (6) improve utility bill affordability;

13 (7) increase mass transit ridership;

14 (8) decrease vehicle miles traveled; and

15 (9) reduce local emissions of greenhouse gases, NOx,

16 SOx, particulate matter, and other air pollutants.

17 (e) A Community Energy and Climate Plan may be administered

18 by one or more program administrators or the local unit of

19 government.

20 Section 15-20. Community Energy and Climate Planning

21 process.

22 (a) An effective planning process shall engage with a

23 diverse set of stakeholders in local communities, including:

24 environmental justice organizations; economic development

25 organizations; faith-based nonprofit organizations;

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1 educational institutions; interested residents; health care

2 institutions; tenant organizations; housing institutions,

3 developers, and owners; elected and appointed officials; and

4 representatives reflective of each local community.

5 (b) An effective planning process shall engage with

6 individual members of the community as much as possible to

7 ensure that the Plans receive input from as diverse set of

8 perspectives as possible.

9 (c) Plan materials and meetings related to the Plan shall

10 be translated into languages that reflect the makeup of the

11 local community.

12 (d) The planning process shall be conducted in an ethical,

13 transparent fashion, and will continually review its policies

14 and practices to determine how best to meet its objectives.

15 Section 15-25. Joint Community Energy and Climate Plans. A

16 local unit of government may join with any other local unit of

17 government, or with any public or private person, or with any

18 number or combination thereof, under the Intergovernmental

19 Cooperation Act, by contract or otherwise as may be permitted

20 by law, for the implementation of a Community Energy and

21 Climate Plan, in whole or in part.

22 Article 20.

23 Clean Energy Empowerment Zones Act

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1 Section 20-1. Short title. This Article may be cited as the

2 Clean Energy Empowerment Zones Act. References in this Article

3 to "this Act" mean this Article.

4 Section 20-5. Legislative findings. The General Assembly

5 finds that, as part of putting Illinois on path to 100%

6 renewable energy, the State of Illinois should ensure a just

7 transition to that goal, providing support for the transition

8 of Illinois' communities and workers impacted by closures or

9 reduced utilization of coal by allocating new State economic

10 development resources for new business tax incentives,

11 workforce training, site clean-up and reuse, and local tax

12 revenue replacement.

13 Section 20-10. Definitions. As used in this Act:

14 "Agency" means the Illinois Environmental Protection

15 Agency.

16 "Department" means the Department of Commerce and Economic

17 Opportunity.

18 "Director" means the Director of Commerce and Economic

19 Opportunity.

20 "Empowerment Zones" means Clean Energy Empowerment Zones

21 Program.

22 "Environmental justice communities" means the proposed

23 definition of that term based on existing methodologies and

24 findings used by the Illinois Power Agency and its

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1 Administrator in its Illinois Solar for All Program.

2 Section 20-15. Clean Energy Empowerment Zones. Within 180

3 days after the effective date of this Act, the Illinois

4 Department of Commerce and Economic Opportunity shall develop

5 and implement strategic planning initiatives to support

6 communities and workers who are economically impacted by the

7 decline of fossil-fuel generation and broader changes in the

8 electric sector. As part of this work, the Department shall:

9 (1) work with the Illinois Environmental Protection

10 Agency, Illinois Environmental Justice Commission, and the

11 Illinois Department of Labor to define "Economically

12 Impacted Communities and Workers" by the decline of

13 fossil-fuel use;

14 (2) establish funds to support impacted workers and

15 communities through workforce training programs, new

16 business tax incentives, and revitalization of sites

17 previously used for or by those units, including, but not

18 limited to, the generation sources, coal ash disposal

19 sites, and areas otherwise blighted by fossil-fuel use;

20 (3) convene, jointly with the Agency and at least one

21 community-based organization, quarterly stakeholder

22 engagement sessions beginning in the fourth quarter of 2019

23 and continuing for not less than 2 years to gather input

24 from impacted community members, businesses, elected

25 officials, environmental organizations, and other relevant

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1 individuals or organizations on issues faced by impacted

2 communities and potential economic development

3 opportunities for those communities; and

4 (4) provide coordination and guidance for communities

5 and prospective new businesses on available workforce

6 training programs, revitalization opportunities, new

7 business incentives, Community Energy and Climate Plans

8 under the Community Energy and Climate Planning Act,

9 beneficial electrification under Section 16-107.8 of the

10 Public Utilities Act, and other State and federal programs

11 such as Opportunity Zones (Internal Revenue Code 1400Z).

12 Article 90.

13 Amendatory Provisions

14 Section 90-5. The Electric Vehicle Act is amended by adding

15 Sections 30, 35, and 40 as follows:

16 (20 ILCS 627/30 new)

17 Sec. 30. Electric Vehicle Charging Infrastructure Rebate

18 and Incentive Program.

19 (a) The purpose of this Section is to provide rebates and

20 other incentives to residential and commercial customers to

21 increase the development of electric vehicle charging

22 infrastructure.

23 (b) In this Section:

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1 "Level 2 charging" means a charging method that allows an

2 electric vehicle to be connected to permanently wired EVSE with

3 a specialized connector (SAE J1772) with power levels rated at

4 less than or equal to 240 VAC/80 amps.

5 "Level 3 charging" means a charging method that allows an

6 electric vehicle to be connected to permanently wired EVSE with

7 direct current service with power levels rated at 480VAC and a

8 3-phase circuit.

9 (c) Within 120 days after the effective date of this

10 amendatory Act of the 101st General Assembly, the Department of

11 Commerce and Economic Opportunity shall establish a program to

12 provide rebates for residential customers who both install

13 electric vehicle charging infrastructure on their premises and

14 enroll in time-of-use, hourly rates, managed charging, or other

15 beneficial electrification programs as defined in Section

16 16-107.8 of the Public Utilities Act sufficient to offset no

17 less than 60% of the cost of installing that infrastructure (or

18 another reasonable amount sufficient to incentivize

19 development, as determined by the program administrator),

20 except as provided in this subsection.

21 Residential customers residing in environmental justice

22 communities, as defined in the Clean Energy Empowerment Zones

23 Act, or households at or below 80% of the area median income,

24 who install electric vehicle charging infrastructure and

25 enroll in time-of-use, hourly rates, managed charging, or other

26 beneficial electrification programs as defined in Section

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1 16-107.8 of the Public Utilities Act shall be eligible to

2 receive rebates of 90% of the cost of installing that

3 infrastructure (or another reasonable amount sufficient to

4 incentivize development, as determined by the program

5 administrator).

6 (d) Within 120 days after the effective date of this

7 amendatory Act of the 101st General Assembly, the Department of

8 Commerce and Economic Opportunity shall establish a program to

9 provide rebates for Level 2 charging and Level 3 charging for

10 government and commercial customers to purchase and install

11 electric vehicle charging infrastructure to support

12 medium-duty and heavy-duty electric fleet vehicles. Eligible

13 customers must both install electric vehicle charging

14 infrastructure for the purpose of charging medium-duty and

15 heavy-duty electric vehicles, as defined in this subsection,

16 and participate in beneficial electrification strategies as

17 defined in Section 16-107.8 of the Public Utilities Act, such

18 as enrolling in managed charging, installing distributed

19 generation which serves all or part of the energy supply needs

20 of the charging infrastructure, or other programs. The amount

21 of the rebate shall be sufficient to incentivize adoption of

22 electric medium-duty and heavy-duty fleet vehicles, but no less

23 than 50% of the cost of purchase and installation. For the

24 purposes of this Section, medium-duty and heavy-duty electric

25 vehicles include school buses, transit buses, freight trucks,

26 delivery vehicles, and other vehicles as defined by the program

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1 administrator.

2 (e) Within 120 days after the effective date of this

3 amendatory Act of the 101st General Assembly, the Department of

4 Commerce and Economic Opportunity shall establish a program to

5 provide rebates for commercial customers to purchase and

6 install charging infrastructure to support light-duty electric

7 vehicles, including personal vehicles used by employees, to

8 enable charging on premises. Eligible customers must both

9 install electric vehicle charging infrastructure for the

10 purpose of charging and participate in beneficial

11 electrification strategies as defined in Section 16-107.8 of

12 the Public Utilities Act, such as enrolling in Managed

13 Charging, installing distributed generation which serves all

14 or part of the energy supply needs of the charging

15 infrastructure, or other programs. The amount of the rebate

16 shall be sufficient to incentivize installation of light-duty

17 electric vehicle charging infrastructure, but no less than 50%

18 of the cost of purchase and installation.

19 (f) Within 120 days after the effective date of this

20 amendatory Act of the 101st General Assembly, the Department of

21 Commerce and Economic Opportunity shall establish a program to

22 provide rebates for Level 2 and Level 3 electric vehicle

23 charging infrastructure which serves multi-family (three or

24 more unit) residential premises. Owners of the multi-family

25 property on whose premises the infrastructure will be installed

26 or third parties are eligible to apply for the rebate. The

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1 amount of the rebate shall be sufficient to incentivize

2 installation of light-duty electric vehicle charging

3 infrastructure, but no less than 50% of the cost of purchase

4 and installation.

5 (g) Within 120 days after the effective date of this

6 amendatory Act of the 101st General Assembly, the Department of

7 Commerce and Economic Opportunity shall establish a program to

8 provide rebates for pilot programs which incentivize

9 installation of electric vehicle charging infrastructure on

10 the public way. Such programs shall include:

11 (1) local governments that develop publicly-available

12 electric vehicle charging using streetlights or other

13 city-owned infrastructure; and

14 (2) local governments and privately-owned third

15 parties that install publicly-available electric vehicle

16 charging infrastructure along State highways, interstates,

17 and other corridors.

18 (h) Within 120 days after the effective date of this

19 amendatory Act of the 101st General Assembly, the Department of

20 Commerce and Economic Opportunity shall establish and

21 implement an Electric Vehicle Access for All Program set forth

22 in Section 35.

23 (i) The Department of Commerce and Economic Opportunity

24 shall select, through a competitive bidding process, a program

25 administrator to oversee and administer the programs described

26 in this Section.

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1 (j) The Department shall report to the Governor and the

2 General Assembly regarding the effectiveness of the programs in

3 increasing electric vehicle charging infrastructure

4 development no later than July 1, 2021.

5 (20 ILCS 627/35 new)

6 Sec. 35. Electric Vehicle Access for All.

7 (a) The General Assembly finds that it is necessary to

8 provide access to electric vehicles to residents in communities

9 where and for individuals whom car ownership is not an option,

10 affordable, or a preference, particularly for environmental

11 justice communities and low-income communities.

12 (b) Within 120 days after the effective date of this

13 amendatory Act of the 101st General Assembly, the Department of

14 Commerce and Economic Opportunity shall establish and

15 implement an Electric Vehicle Access for All Program, designed

16 to maximize opportunities for carbon-free transportation

17 across the State, particularly targeting environmental justice

18 and low-income communities, which shall include the following

19 initiatives:

20 (1) Car sharing. The Department of Commerce and

21 Economic Opportunity shall develop and implement an

22 electric vehicle car sharing program that enables

23 residents opportunities to use electric vehicles owned by

24 local municipalities or other third parties for occasional

25 commutes.

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1 (2) Pilot programs. The Department shall dedicate

2 funding for local governments' eligible Community Energy

3 and Climate Plans that include Electric Vehicle Access for

4 All as priority initiatives.

5 (c) To the extent possible, the Department shall coordinate

6 the Electric Vehicle Access for All program with the other

7 programs established in this Act.

8 (20 ILCS 627/40 new)

9 Sec. 40. Carbon-Free Last Mile of Commutes Program.

10 (a) The purpose of this Section is to provide citizens

11 access to carbon-free commuting by creating pilot programs to

12 address the "last mile" of commutes, enabling a larger number

13 of citizens to access public transportation and reducing the

14 pollution impact of the entire commute.

15 (b) Within 120 days after the effective date of this

16 amendatory Act of the 101st General Assembly, and for a period

17 not less than 36 months thereafter, the Department of Commerce

18 and Economic Opportunity shall establish and implement a Last

19 Mile of Commutes Program, designed to maximize opportunities

20 for carbon-free transportation across the State, particularly

21 targeting environmental justice and low-income communities, to

22 provide grants to pilot programs with the purpose of bridging

23 public transportation gaps between residences and employment

24 locations. Eligible programs may include electric shuttles,

25 electric and non-electric bicycle and scooter sharing,

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1 electric vehicle sharing, and other carbon-free alternatives.

2 The Department of Commerce and Economic Opportunity shall

3 select, through a competitive bidding program, a program

4 administrator to oversee and administer the program.

5 (c) In conducting the program, the Department of Commerce

6 and Economic Opportunity shall partner with appropriate

7 transit agencies, employers, and other transportation services

8 to increase the number of employment locations reachable by

9 public transit. The Department of Commerce and Economic

10 Opportunity shall additionally partner with local governments

11 engaging in Community Energy and Climate Planning, as described

12 in the Community Energy and Climate Planning Act, to implement

13 Last Mile of Commutes Programs efficiently with needs

14 identified in Community Energy and Climate Plans.

15 (d) The Department of Commerce and Economic Opportunity

16 shall operate the Last Mile of Commutes Program in conjunction

17 with the Electric Vehicle Access for All Program, to

18 effectively coordinate the programs and maximize opportunities

19 for carbon-free transportation across the State, particularly

20 targeting environmental justice and low-income communities.

21 (e) The Department of Commerce and Economic Opportunity

22 shall report to the Governor and the General Assembly regarding

23 the effectiveness of the programs no later than July 1, 2021.

24 Section 90-10. The Illinois Power Agency Act is amended by

25 changing Sections 1-5, 1-20, 1-56, and 1-75 as follows:

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1 (20 ILCS 3855/1-5)

2 Sec. 1-5. Legislative declarations and findings. The

3 General Assembly finds and declares:

4 (1) The health, welfare, and prosperity of all Illinois

5 citizens require the provision of adequate, reliable,

6 affordable, efficient, and environmentally sustainable

7 electric service at the lowest total cost over time, taking

8 into account any benefits of price stability.

9 (1.5) To provide the highest quality of life for the

10 residents of Illinois, and to provide for a clean and

11 healthy environment, it is the policy of this State to

12 rapidly transition to 100% renewable energy.

13 (2) (Blank).

14 (3) (Blank).

15 (4) It is necessary to improve the process of procuring

16 electricity to serve Illinois residents, to promote

17 investment in energy efficiency and demand-response

18 measures, and to maintain and support development of clean

19 coal technologies, generation resources that operate at

20 all hours of the day and under all weather conditions, zero

21 emission facilities, and renewable resources.

22 (5) Procuring a diverse electricity supply portfolio

23 will ensure the lowest total cost over time for adequate,

24 reliable, efficient, and environmentally sustainable

25 electric service.

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1 (6) Including renewable resources and zero emission

2 credits from zero emission facilities in that portfolio

3 will reduce long-term direct and indirect costs to

4 consumers by decreasing environmental impacts and by

5 avoiding or delaying the need for new generation,

6 transmission, and distribution infrastructure. Developing

7 new renewable energy resources in Illinois, including

8 brownfield solar projects and community solar projects,

9 will help to diversify Illinois electricity supply, avoid

10 and reduce pollution, reduce peak demand, and enhance

11 public health and well-being of Illinois residents.

12 (7) Developing community solar projects in Illinois

13 will help to expand access to renewable energy resources to

14 more Illinois residents.

15 (8) Developing brownfield solar projects in Illinois

16 will help return blighted or contaminated land to

17 productive use while enhancing public health and the

18 well-being of Illinois residents.

19 (9) Energy efficiency, demand-response measures, zero

20 emission energy, and renewable energy are resources

21 currently underused in Illinois. These resources should be

22 used, when cost effective, to reduce costs to consumers,

23 improve reliability, and improve environmental quality and

24 public health.

25 (10) The State should encourage the use of advanced

26 clean coal technologies that capture and sequester carbon

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1 dioxide emissions to advance environmental protection

2 goals and to demonstrate the viability of coal and

3 coal-derived fuels in a carbon-constrained economy.

4 (11) The General Assembly enacted Public Act 96-0795 to

5 reform the State's purchasing processes, recognizing that

6 government procurement is susceptible to abuse if

7 structural and procedural safeguards are not in place to

8 ensure independence, insulation, oversight, and

9 transparency.

10 (12) The principles that underlie the procurement

11 reform legislation apply also in the context of power

12 purchasing.

13 (13) To ensure that the benefits of installing

14 renewable resources are available to all Illinois

15 residents and located across the State, subject to

16 appropriation, it is necessary for the Illinois Power

17 Agency to provide public information and educational

18 resources on how residents can benefit from the expansion

19 of renewable energy in Illinois and participate in the

20 Illinois Solar for All Program established in Section 1-56

21 of this Act, the Adjustable Block Program established in

22 Section 1-75 of this Act, the job training programs

23 established by paragraph (1) of subsection (a) of Section

24 16-108.12 of the Public Utilities Act, and the programs and

25 resources established by the Clean Jobs Workforce Hubs Act.

26 The General Assembly therefore finds that it is necessary

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1 to create the Illinois Power Agency and that the goals and

2 objectives of that Agency are to accomplish each of the

3 following:

4 (A) Develop electricity procurement plans to ensure

5 adequate, reliable, affordable, efficient, and

6 environmentally sustainable electric service at the lowest

7 total cost over time, taking into account any benefits of

8 price stability, for electric utilities that on December

9 31, 2005 provided electric service to at least 100,000

10 customers in Illinois and for small multi-jurisdictional

11 electric utilities that (i) on December 31, 2005 served

12 less than 100,000 customers in Illinois and (ii) request a

13 procurement plan for their Illinois jurisdictional load.

14 The procurement plan shall be updated on an annual basis

15 and shall include renewable energy resources and,

16 beginning with the delivery year commencing June 1, 2017,

17 zero emission credits from zero emission facilities

18 sufficient to achieve the standards specified in this Act.

19 (B) Conduct the competitive procurement processes

20 identified in this Act.

21 (C) Develop electric generation and co-generation

22 facilities that use indigenous coal or renewable

23 resources, or both, financed with bonds issued by the

24 Illinois Finance Authority.

25 (D) Supply electricity from the Agency's facilities at

26 cost to one or more of the following: municipal electric

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1 systems, governmental aggregators, or rural electric

2 cooperatives in Illinois.

3 (E) Ensure that the process of power procurement is

4 conducted in an ethical and transparent fashion, immune

5 from improper influence.

6 (F) Continue to review its policies and practices to

7 determine how best to meet its mission of providing the

8 lowest cost power to the greatest number of people, at any

9 given point in time, in accordance with applicable law.

10 (G) Operate in a structurally insulated, independent,

11 and transparent fashion so that nothing impedes the

12 Agency's mission to secure power at the best prices the

13 market will bear, provided that the Agency meets all

14 applicable legal requirements.

15 (H) Implement renewable energy procurement and

16 training programs throughout the State to diversify

17 Illinois electricity supply, improve reliability, avoid

18 and reduce pollution, reduce peak demand, and enhance

19 public health and well-being of Illinois residents,

20 including low-income residents.

21 (Source: P.A. 99-906, eff. 6-1-17.)

22 (20 ILCS 3855/1-20)

23 Sec. 1-20. General powers and duties of the Agency.

24 (a) The Agency is authorized to do each of the following:

25 (1) Develop electricity procurement plans to ensure

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1 adequate, reliable, affordable, efficient, and

2 environmentally sustainable electric service at the lowest

3 total cost over time, taking into account any benefits of

4 price stability, for electric utilities that on December

5 31, 2005 provided electric service to at least 100,000

6 customers in Illinois and for small multi-jurisdictional

7 electric utilities that (A) on December 31, 2005 served

8 less than 100,000 customers in Illinois and (B) request a

9 procurement plan for their Illinois jurisdictional load.

10 Except as provided in paragraph (1.5) of this subsection

11 (a), the electricity procurement plans shall be updated on

12 an annual basis and shall include electricity generated

13 from renewable resources sufficient to achieve the

14 standards specified in this Act. Beginning with the

15 delivery year commencing June 1, 2017, develop procurement

16 plans to include zero emission credits generated from zero

17 emission facilities sufficient to achieve the standards

18 specified in this Act. Beginning with the procurement for

19 the delivery year commencing June 1, 2021, the Agency shall

20 for each year develop a plan, as part of its procurement

21 plan, to conduct a procurement of capacity from qualified

22 resources needed to meet capacity requirements of the

23 retail customers of electric utilities that serve more than

24 3,000,000 retail customers and are located in the PJM

25 interconnection, subject to the open access tariff and

26 manuals of PJM Interconnection and approved by the Federal

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1 Energy Regulatory Commission. The capacity procurement

2 plan shall be updated annually and shall include

3 electricity generated from renewable resources sufficient

4 to achieve the renewable portfolio standards as specified

5 in this Act.

6 (1.5) Develop a long-term renewable resources

7 procurement plan in accordance with subsection (c) of

8 Section 1-75 of this Act for renewable energy credits in

9 amounts sufficient to achieve the standards specified in

10 this Act for delivery years commencing June 1, 2017 and for

11 the programs and renewable energy credits specified in

12 Section 1-56 of this Act. Electricity procurement plans for

13 delivery years commencing after May 31, 2017, shall not

14 include procurement of renewable energy resources.

15 (2) Conduct competitive procurement processes to

16 procure the supply resources identified in the electricity

17 procurement plan, pursuant to Section 16-111.5 of the

18 Public Utilities Act, and, for the delivery year commencing

19 June 1, 2017, conduct procurement processes to procure zero

20 emission credits from zero emission facilities, under

21 subsection (d-5) of Section 1-75 of this Act.

22 (2.5) Beginning with the procurement for the 2017

23 delivery year, conduct competitive procurement processes

24 and implement programs to procure renewable energy credits

25 identified in the long-term renewable resources

26 procurement plan developed and approved under subsection

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1 (c) of Section 1-75 of this Act and Section 16-111.5 of the

2 Public Utilities Act.

3 (3) Develop electric generation and co-generation

4 facilities that use indigenous coal or renewable

5 resources, or both, financed with bonds issued by the

6 Illinois Finance Authority.

7 (4) Supply electricity from the Agency's facilities at

8 cost to one or more of the following: municipal electric

9 systems, governmental aggregators, or rural electric

10 cooperatives in Illinois.

11 (b) Except as otherwise limited by this Act, the Agency has

12 all of the powers necessary or convenient to carry out the

13 purposes and provisions of this Act, including without

14 limitation, each of the following:

15 (1) To have a corporate seal, and to alter that seal at

16 pleasure, and to use it by causing it or a facsimile to be

17 affixed or impressed or reproduced in any other manner.

18 (2) To use the services of the Illinois Finance

19 Authority necessary to carry out the Agency's purposes.

20 (3) To negotiate and enter into loan agreements and

21 other agreements with the Illinois Finance Authority.

22 (4) To obtain and employ personnel and hire consultants

23 that are necessary to fulfill the Agency's purposes, and to

24 make expenditures for that purpose within the

25 appropriations for that purpose.

26 (5) To purchase, receive, take by grant, gift, devise,

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1 bequest, or otherwise, lease, or otherwise acquire, own,

2 hold, improve, employ, use, and otherwise deal in and with,

3 real or personal property whether tangible or intangible,

4 or any interest therein, within the State.

5 (6) To acquire real or personal property, whether

6 tangible or intangible, including without limitation

7 property rights, interests in property, franchises,

8 obligations, contracts, and debt and equity securities,

9 and to do so by the exercise of the power of eminent domain

10 in accordance with Section 1-21; except that any real

11 property acquired by the exercise of the power of eminent

12 domain must be located within the State.

13 (7) To sell, convey, lease, exchange, transfer,

14 abandon, or otherwise dispose of, or mortgage, pledge, or

15 create a security interest in, any of its assets,

16 properties, or any interest therein, wherever situated.

17 (8) To purchase, take, receive, subscribe for, or

18 otherwise acquire, hold, make a tender offer for, vote,

19 employ, sell, lend, lease, exchange, transfer, or

20 otherwise dispose of, mortgage, pledge, or grant a security

21 interest in, use, and otherwise deal in and with, bonds and

22 other obligations, shares, or other securities (or

23 interests therein) issued by others, whether engaged in a

24 similar or different business or activity.

25 (9) To make and execute agreements, contracts, and

26 other instruments necessary or convenient in the exercise

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1 of the powers and functions of the Agency under this Act,

2 including contracts with any person, including personal

3 service contracts, or with any local government, State

4 agency, or other entity; and all State agencies and all

5 local governments are authorized to enter into and do all

6 things necessary to perform any such agreement, contract,

7 or other instrument with the Agency. No such agreement,

8 contract, or other instrument shall exceed 40 years.

9 (10) To lend money, invest and reinvest its funds in

10 accordance with the Public Funds Investment Act, and take

11 and hold real and personal property as security for the

12 payment of funds loaned or invested.

13 (11) To borrow money at such rate or rates of interest

14 as the Agency may determine, issue its notes, bonds, or

15 other obligations to evidence that indebtedness, and

16 secure any of its obligations by mortgage or pledge of its

17 real or personal property, machinery, equipment,

18 structures, fixtures, inventories, revenues, grants, and

19 other funds as provided or any interest therein, wherever

20 situated.

21 (12) To enter into agreements with the Illinois Finance

22 Authority to issue bonds whether or not the income

23 therefrom is exempt from federal taxation.

24 (13) To procure insurance against any loss in

25 connection with its properties or operations in such amount

26 or amounts and from such insurers, including the federal

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1 government, as it may deem necessary or desirable, and to

2 pay any premiums therefor.

3 (14) To negotiate and enter into agreements with

4 trustees or receivers appointed by United States

5 bankruptcy courts or federal district courts or in other

6 proceedings involving adjustment of debts and authorize

7 proceedings involving adjustment of debts and authorize

8 legal counsel for the Agency to appear in any such

9 proceedings.

10 (15) To file a petition under Chapter 9 of Title 11 of

11 the United States Bankruptcy Code or take other similar

12 action for the adjustment of its debts.

13 (16) To enter into management agreements for the

14 operation of any of the property or facilities owned by the

15 Agency.

16 (17) To enter into an agreement to transfer and to

17 transfer any land, facilities, fixtures, or equipment of

18 the Agency to one or more municipal electric systems,

19 governmental aggregators, or rural electric agencies or

20 cooperatives, for such consideration and upon such terms as

21 the Agency may determine to be in the best interest of the

22 citizens of Illinois.

23 (18) To enter upon any lands and within any building

24 whenever in its judgment it may be necessary for the

25 purpose of making surveys and examinations to accomplish

26 any purpose authorized by this Act.

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1 (19) To maintain an office or offices at such place or

2 places in the State as it may determine.

3 (20) To request information, and to make any inquiry,

4 investigation, survey, or study that the Agency may deem

5 necessary to enable it effectively to carry out the

6 provisions of this Act.

7 (21) To accept and expend appropriations.

8 (22) To engage in any activity or operation that is

9 incidental to and in furtherance of efficient operation to

10 accomplish the Agency's purposes, including hiring

11 employees that the Director deems essential for the

12 operations of the Agency.

13 (23) To adopt, revise, amend, and repeal rules with

14 respect to its operations, properties, and facilities as

15 may be necessary or convenient to carry out the purposes of

16 this Act, subject to the provisions of the Illinois

17 Administrative Procedure Act and Sections 1-22 and 1-35 of

18 this Act.

19 (24) To establish and collect charges and fees as

20 described in this Act.

21 (25) To conduct competitive gasification feedstock

22 procurement processes to procure the feedstocks for the

23 clean coal SNG brownfield facility in accordance with the

24 requirements of Section 1-78 of this Act.

25 (26) To review, revise, and approve sourcing

26 agreements and mediate and resolve disputes between gas

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1 utilities and the clean coal SNG brownfield facility

2 pursuant to subsection (h-1) of Section 9-220 of the Public

3 Utilities Act.

4 (27) To request, review and accept proposals, execute

5 contracts, purchase renewable energy credits and otherwise

6 dedicate funds from the Illinois Power Agency Renewable

7 Energy Resources Fund to create and carry out the

8 objectives of the Illinois Solar for All program in

9 accordance with Section 1-56 of this Act.

10 (Source: P.A. 99-906, eff. 6-1-17.)

11 (20 ILCS 3855/1-56)

12 Sec. 1-56. Illinois Power Agency Renewable Energy

13 Resources Fund; Illinois Solar for All Program.

14 (a) The Illinois Power Agency Renewable Energy Resources

15 Fund is created as a special fund in the State treasury.

16 (b) The Illinois Power Agency Renewable Energy Resources

17 Fund shall be administered by the Agency as described in this

18 subsection (b), provided that the changes to this subsection

19 (b) made by this amendatory Act of the 99th General Assembly

20 shall not interfere with existing contracts under this Section.

21 (1) The Illinois Power Agency Renewable Energy

22 Resources Fund shall be used to purchase renewable energy

23 credits according to any approved procurement plan

24 developed by the Agency prior to June 1, 2017.

25 (2) The Illinois Power Agency Renewable Energy

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1 Resources Fund shall also be used to create the Illinois

2 Solar for All Program, which shall include incentives for

3 low-income distributed generation and community solar

4 projects, and other associated approved expenditures. The

5 objectives of the Illinois Solar for All Program are to

6 bring photovoltaics to low-income communities in this

7 State in a manner that maximizes the development of new

8 photovoltaic generating facilities, to create a long-term,

9 low-income solar marketplace throughout this State, to

10 integrate, through interaction with stakeholders, with

11 existing energy efficiency initiatives, and to minimize

12 administrative costs. The Agency shall include a

13 description of its proposed approach to the design,

14 administration, implementation and evaluation of the

15 Illinois Solar for All Program, as part of the long-term

16 renewable resources procurement plan authorized by

17 subsection (c) of Section 1-75 of this Act, and the program

18 shall be designed to grow the low-income solar market. The

19 Agency or utility, as applicable, shall purchase renewable

20 energy credits from the (i) photovoltaic distributed

21 renewable energy generation projects and (ii) community

22 solar projects that are procured under procurement

23 processes authorized by the long-term renewable resources

24 procurement plans approved by the Commission.

25 The Illinois Solar for All Program shall include the

26 program offerings described in subparagraphs (A) through

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1 (D) of this paragraph (2), which the Agency shall implement

2 through contracts with third-party providers and, subject

3 to appropriation, pay the approximate amounts identified

4 using monies available in the Illinois Power Agency

5 Renewable Energy Resources Fund. Each contract that

6 provides for the installation of solar facilities shall

7 provide that the solar facilities will produce energy and

8 economic benefits, at a level determined by the Agency to

9 be reasonable, for the participating low income customers.

10 The monies available in the Illinois Power Agency Renewable

11 Energy Resources Fund and not otherwise committed to

12 contracts executed under subsection (i) of this Section

13 shall be allocated among the programs described in this

14 paragraph (2), as follows: 22.5% of these funds shall be

15 allocated to programs described in subparagraph (A) of this

16 paragraph (2), 37.5% of these funds shall be allocated to

17 programs described in subparagraph (B) of this paragraph

18 (2), 15% of these funds shall be allocated to programs

19 described in subparagraph (C) of this paragraph (2), and

20 25% of these funds, but in no event more than $50,000,000,

21 shall be allocated to programs described in subparagraph

22 (D) of this paragraph (2). Beginning with the 2019 update

23 to the long-term renewable resource procurement plan

24 authorized by subsection (c) of Section 1-75 of this Act,

25 subject to appropriation and, following the 2021 delivery

26 year, subject to fund availability through the Commission

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1 process described in subparagraph (Q) of paragraph (1) of

2 subsection (c) of Section 1-75, funds shall be allocated to

3 programs described in subparagraphs (E) and (F) of this

4 paragraph (2). The allocation of funds among subparagraphs

5 (A), (B), or (C) of this paragraph (2) may be changed if

6 the Agency or administrator, through delegated authority,

7 determines incentives in subparagraphs (A), (B), or (C) of

8 this paragraph (2) have not been adequately subscribed to

9 fully utilize the Illinois Power Agency Renewable Energy

10 Resources Fund. The determination shall include input

11 through a stakeholder process. Additionally, if the

12 Commission process described in subparagraph (Q) of

13 paragraph (1) of subsection (c) of Section 1-75 results in

14 an increase in funds available to the Illinois Solar for

15 All program, the Agency shall reallocate the funds among

16 all the various subprograms of the Illinois Solar for All

17 Program to provide funding for the subprograms described in

18 subparagraphs (E) and (F) of this paragraph (2). This

19 reallocation shall involve input through a stakeholder

20 process. The program offerings described in subparagraphs

21 (A) through (D) of this paragraph (2) shall also be

22 implemented through contracts funded from such additional

23 amounts as are allocated to one or more of the programs in

24 the long-term renewable resources procurement plans as

25 specified in subsection (c) of Section 1-75 of this Act and

26 subparagraph (O) of paragraph (1) of such subsection (c).

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1 Contracts that will be paid with funds in the Illinois

2 Power Agency Renewable Energy Resources Fund shall be

3 executed by the Agency. Contracts that will be paid with

4 funds collected by an electric utility shall be executed by

5 the electric utility.

6 Contracts under the Illinois Solar for All Program

7 shall include an approach, as set forth in the long-term

8 renewable resources procurement plans, to ensure the

9 wholesale market value of the energy is credited to

10 participating low-income customers or organizations and to

11 ensure tangible economic benefits flow directly to program

12 participants, except in the case of low-income

13 multi-family housing where the low-income customer does

14 not directly pay for energy. Priority shall be given to

15 projects that demonstrate meaningful involvement of

16 low-income community members in designing the initial

17 proposals. Acceptable proposals to implement projects must

18 demonstrate the applicant's ability to conduct initial

19 community outreach, education, and recruitment of

20 low-income participants in the community. Projects must

21 include job training opportunities if available, and shall

22 endeavor to coordinate with the job training programs

23 described in paragraph (1) of subsection (a) of Section

24 16-108.12 of the Public Utilities Act.

25 (A) Low-income distributed generation incentive.

26 This program will provide incentives to low-income

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1 customers, either directly or through solar providers,

2 to increase the participation of low-income households

3 in photovoltaic on-site distributed generation.

4 Companies participating in this program that install

5 solar panels shall commit to hiring job trainees for a

6 portion of their low-income installations, and an

7 administrator shall facilitate partnering the

8 companies that install solar panels with entities that

9 provide solar panel installation job training. It is a

10 goal of this program that a minimum of 25% of the

11 incentives for this program be allocated to projects

12 located within environmental justice communities.

13 Contracts entered into under this paragraph may be

14 entered into with an entity that will develop and

15 administer the program and shall also include

16 contracts for renewable energy credits from the

17 photovoltaic distributed generation that is the

18 subject of the program, as set forth in the long-term

19 renewable resources procurement plan.

20 (B) Low-Income Community Solar Project Initiative.

21 Incentives shall be offered to low-income customers,

22 either directly or through developers, to increase the

23 participation of low-income subscribers of community

24 solar projects. The developer of each project shall

25 identify its partnership with community stakeholders

26 regarding the location, development, and participation

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1 in the project, provided that nothing shall preclude a

2 project from including an anchor tenant that does not

3 qualify as low-income. Incentives should also be

4 offered to community solar projects that are 100%

5 low-income subscriber owned, which includes low-income

6 households, not-for-profit organizations, and

7 affordable housing owners. It is a goal of this program

8 that a minimum of 25% of the incentives for this

9 program be allocated to community photovoltaic

10 projects in environmental justice communities.

11 Contracts entered into under this paragraph may be

12 entered into with developers and shall also include

13 contracts for renewable energy credits related to the

14 program.

15 (C) Incentives for non-profits and public

16 facilities. Under this program funds shall be used to

17 support on-site photovoltaic distributed renewable

18 energy generation devices to serve the load associated

19 with not-for-profit customers and to support

20 photovoltaic distributed renewable energy generation

21 that uses photovoltaic technology to serve the load

22 associated with public sector customers taking service

23 at public buildings. It is a goal of this program that

24 at least 25% of the incentives for this program be

25 allocated to projects located in environmental justice

26 communities. Contracts entered into under this

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1 paragraph may be entered into with an entity that will

2 develop and administer the program or with developers

3 and shall also include contracts for renewable energy

4 credits related to the program.

5 (D) Low-Income Community Solar Pilot Projects.

6 Under this program, persons, including, but not

7 limited to, electric utilities, shall propose pilot

8 community solar projects. Community solar projects

9 proposed under this subparagraph (D) may exceed 2,000

10 kilowatts in nameplate capacity, but the amount paid

11 per project under this program may not exceed

12 $20,000,000. Pilot projects must result in economic

13 benefits for the members of the community in which the

14 project will be located. The proposed pilot project

15 must include a partnership with at least one

16 community-based organization. Approved pilot projects

17 shall be competitively bid by the Agency, subject to

18 fair and equitable guidelines developed by the Agency.

19 Funding available under this subparagraph (D) may not

20 be distributed solely to a utility, and at least some

21 funds under this subparagraph (D) must include a

22 project partnership that includes community ownership

23 by the project subscribers. Contracts entered into

24 under this paragraph may be entered into with an entity

25 that will develop and administer the program or with

26 developers and shall also include contracts for

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1 renewable energy credits related to the program. A

2 project proposed by a utility that is implemented under

3 this subparagraph (D) shall not be included in the

4 utility's rate base ~~ratebase~~.

5 (E) Energy Sovereignty Distributed Generation

6 Incentive. Beginning with the 2019 update to the

7 long-term renewable resource procurement plan

8 authorized by subsection (c) of Section 1-75 of this

9 Act, subject to appropriation, the Illinois Power

10 Agency shall create a program that provides incentives

11 to low-income customers, either directly or through

12 solar providers, to increase the participation of

13 low-income households in photovoltaic on-site

14 distributed generation in projects that are 100%

15 low-income household owned, which includes low-income

16 households, low-income households in environmental

17 justice communities, not-for-profit organizations

18 providing services to low-income households,

19 affordable housing owners, and community-based limited

20 liability companies providing services to low-income

21 households. The program shall also provide incentives

22 for photovoltaic on-site distributed generation

23 projects that, by no later than 5 years after the

24 device is interconnected at the distribution system

25 level of the utility and energized, are a minimum of

26 49% low-income subscriber owned, which includes

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1 low-income households, low-income households in

2 environmental justice communities, not-for-profit

3 organizations providing services to low-income

4 households, affordable housing owners, and

5 community-based limited liability companies providing

6 services to low-income households. Companies

7 participating in this program that install solar

8 panels shall commit to hiring job trainees for a

9 portion of their low-income installations, and an

10 administrator shall facilitate partnering the

11 companies that install solar panels with entities that

12 provide solar panel installation job training. It is a

13 goal of this program that a minimum of 25% of the

14 incentives for this program be allocated to projects in

15 environmental justice communities. Contracts entered

16 into under this paragraph may be entered into with an

17 entity that will develop and administer the program and

18 shall also include contracts for renewable energy

19 credits from the photovoltaic distributed generation

20 that is the subject of the program, as set forth in the

21 long-term renewable resources procurement plan.

22 (F) Energy Sovereignty Community Solar Incentive.

23 Beginning with the 2019 update to the long-term

24 renewable resource procurement plan authorized by

25 subsection (c) of Section 1-75 of this Act, subject to

26 appropriation, the Illinois Power Agency shall create

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1 a program that shall provide incentives to low-income

2 customers, either directly or through developers, to

3 increase the participation of low-income subscribers

4 of community solar projects in projects that are 100%

5 low-income subscriber owned, which includes low-income

6 households, low-income households in environmental

7 justice communities, not-for-profit organizations

8 providing services to low-income households,

9 affordable housing owners, and community-based limited

10 liability companies providing services to low-income

11 households. The program shall also provide incentives

12 for community solar projects that, by no later than 5

13 years after the device is interconnected at the

14 distribution system level of the utility and

15 energized, are a minimum of 49% low-income subscriber

16 owned, which includes low-income households,

17 low-income households in environmental justice

18 communities, not-for-profit organizations providing

19 services to low-income households, affordable housing

20 owners, and community-based limited liability

21 companies providing services to low-income households.

22 The developer of each project shall identify its

23 partnership with community stakeholders regarding the

24 location, development and participation in the

25 project. Companies participating in this program that

26 install solar panels shall commit to hiring job

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1 trainees for a portion of their low-income

2 installations, and an administrator shall facilitate

3 partnering the companies that install solar panels

4 with entities that provide solar panel installation

5 job training. It is a goal of this program that a

6 minimum of 25% of the incentives for this program be

7 allocated to projects in environmental justice

8 communities. Contracts entered into under this

9 paragraph may be entered into with developers and shall

10 also include contracts for renewable energy credits

11 related to the program.

12 The requirement that a qualified person, as defined in

13 paragraph (1) of subsection (i) of this Section, install

14 photovoltaic devices does not apply to the Illinois Solar

15 for All Program described in this subsection (b).

16 (3) Costs associated with the Illinois Solar for All

17 Program and its components described in paragraph (2) of

18 this subsection (b), including, but not limited to, costs

19 associated with procuring experts, consultants, and the

20 program administrator referenced in this subsection (b)

21 and related incremental costs, and costs related to the

22 evaluation of the Illinois Solar for All Program, may be

23 paid for using monies in the Illinois Power Agency

24 Renewable Energy Resources Fund, but the Agency or program

25 administrator shall strive to minimize costs in the

26 implementation of the program. The Agency shall purchase

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1 renewable energy credits from generation that is the

2 subject of a contract under subparagraphs (A) through (D)

3 of this paragraph (2) of this subsection (b), and may pay

4 for such renewable energy credits through an upfront

5 payment per installed kilowatt of nameplate capacity paid

6 once the device is interconnected at the distribution

7 system level of the utility and is energized. The payment

8 shall be in exchange for an assignment of all renewable

9 energy credits generated by the system during the first 15

10 years of operation and shall be structured to overcome

11 barriers to participation in the solar market by the

12 low-income community. The incentives provided for in this

13 Section may be implemented through the pricing of renewable

14 energy credits where the prices paid for the credits are

15 higher than the prices from programs offered under

16 subsection (c) of Section 1-75 of this Act to account for

17 the incentives. The Agency shall ensure collaboration with

18 community agencies, and allocate up to 5% of the funds

19 available under the Illinois Solar for All Program to

20 community-based groups to assist in grassroots education

21 efforts related to the Illinois Solar for All Program. The

22 Agency shall retire any renewable energy credits purchased

23 from this program and the credits shall count towards the

24 obligation under subsection (c) of Section 1-75 of this Act

25 for the electric utility to which the project is

26 interconnected.

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1 (4) The Agency shall, consistent with the requirements

2 of this subsection (b), propose the Illinois Solar for All

3 Program terms, conditions, and requirements, including the

4 prices to be paid for renewable energy credits, and which

5 prices may be determined through a formula, through the

6 development, review, and approval of the Agency's

7 long-term renewable resources procurement plan described

8 in subsection (c) of Section 1-75 of this Act and Section

9 16-111.5 of the Public Utilities Act. In the course of the

10 Commission proceeding initiated to review and approve the

11 plan, including the Illinois Solar for All Program proposed

12 by the Agency, a party may propose an additional low-income

13 solar or solar incentive program, or modifications to the

14 programs proposed by the Agency, and the Commission may

15 approve an additional program, or modifications to the

16 Agency's proposed program, if the additional or modified

17 program more effectively maximizes the benefits to

18 low-income customers after taking into account all

19 relevant factors, including, but not limited to, the extent

20 to which a competitive market for low-income solar has

21 developed. Following the Commission's approval of the

22 Illinois Solar for All Program, the Agency or a party may

23 propose adjustments to the program terms, conditions, and

24 requirements, including the price offered to new systems,

25 to ensure the long-term viability and success of the

26 program. The Commission shall review and approve any

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1 modifications to the program through the plan revision

2 process described in Section 16-111.5 of the Public

3 Utilities Act.

4 (5) The Agency shall issue a request for qualifications

5 for a third-party program administrator or administrators

6 to administer all or a portion of the Illinois Solar for

7 All Program. The third-party program administrator shall

8 be chosen through a competitive bid process based on

9 selection criteria and requirements developed by the

10 Agency, including, but not limited to, experience in

11 administering low-income energy programs and overseeing

12 statewide clean energy or energy efficiency services. If

13 the Agency retains a program administrator or

14 administrators to implement all or a portion of the

15 Illinois Solar for All Program, each administrator shall

16 periodically submit reports to the Agency and Commission

17 for each program that it administers, at appropriate

18 intervals to be identified by the Agency in its long-term

19 renewable resources procurement plan, provided that the

20 reporting interval is at least quarterly.

21 (6) The long-term renewable resources procurement plan

22 shall also provide for an independent evaluation of the

23 Illinois Solar for All Program. At least every 2 years, the

24 Agency shall select an independent evaluator to review and

25 report on the Illinois Solar for All Program and the

26 performance of the third-party program administrator of

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1 the Illinois Solar for All Program. The evaluation shall be

2 based on objective criteria developed through a public

3 stakeholder process. The process shall include feedback

4 and participation from Illinois Solar for All Program

5 stakeholders, including participants and organizations in

6 environmental justice and historically underserved

7 communities. The report shall include a summary of the

8 evaluation of the Illinois Solar for All Program based on

9 the stakeholder developed objective criteria. The report

10 shall include the number of projects installed; the total

11 installed capacity in kilowatts; the average cost per

12 kilowatt of installed capacity to the extent reasonably

13 obtainable by the Agency; the number of jobs or job

14 opportunities created; economic, social, and environmental

15 benefits created; and the total administrative costs

16 expended by the Agency and program administrator to

17 implement and evaluate the program. The report shall be

18 delivered to the Commission and posted on the Agency's

19 website, and shall be used, as needed, to revise the

20 Illinois Solar for All Program. The Commission shall also

21 consider the results of the evaluation as part of its

22 review of the long-term renewable resources procurement

23 plan under subsection (c) of Section 1-75 of this Act.

24 (7) If additional funding for the programs described in

25 this subsection (b) is available under subsection (k) of

26 Section 16-108 of the Public Utilities Act, then the Agency

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1 shall submit a procurement plan to the Commission no later

2 than September 1, 2018, that proposes how the Agency will

3 procure programs on behalf of the applicable utility. After

4 notice and hearing, the Commission shall approve, or

5 approve with modification, the plan no later than November

6 1, 2018.

7 (8) Beginning with the 2019 update to the long-term

8 renewable resources procurement plan authorized by

9 subsection (c) of Section 1-75 of this Act, subject to

10 appropriation and, following the 2021 delivery year,

11 subject to fund availability through the Commission

12 process described in subparagraph (Q) of paragraph (1) of

13 subsection (c) of Section 1-75, the Illinois Power Agency

14 shall propose an expansion of the Illinois Solar for All

15 Program. The expansion shall have as a goal quadrupling the

16 annual installed capacity in kilowatts under subparagraphs

17 (A), (B), and (C) of paragraph (2) as well as quintupling

18 the grassroots education efforts under paragraph (3) of

19 this subsection.

20 As used in this subsection (b), "low-income households"

21 means persons and families whose income does not exceed 80% of

22 area median income, adjusted for family size and revised every

23 5 years.

24 For the purposes of this subsection (b), the Agency shall

25 define "environmental justice community" based on

26 methodologies and findings established by the Illinois Power

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1 Agency and its Administrator for the Illinois Solar for All

2 Program in its initial long-term renewable resources

3 procurement plan and updated by the Illinois Power Agency and

4 its Administrator for the Illinois Solar for All Program as

5 part of the long-term renewable resources procurement plan

6 update ~~as part of long-term renewable resources procurement~~

7 ~~plan development, to ensure, to the extent practicable,~~

8 ~~compatibility with other agencies' definitions and may, for~~

9 ~~guidance, look to the definitions used by federal, state, or~~

10 ~~local governments~~.

11 (b-5) After the receipt of all payments required by Section

12 16-115D of the Public Utilities Act, no additional funds shall

13 be deposited into the Illinois Power Agency Renewable Energy

14 Resources Fund unless directed by order of the Commission.

15 (b-10) After the receipt of all payments required by

16 Section 16-115D of the Public Utilities Act and payment in full

17 of all contracts executed by the Agency under subsections (b)

18 and (i) of this Section, if the balance of the Illinois Power

19 Agency Renewable Energy Resources Fund is under $5,000, then

20 the Fund shall be inoperative and any remaining funds and any

21 funds submitted to the Fund after that date, shall be

22 transferred to the Supplemental Low-Income Energy Assistance

23 Fund for use in the Low-Income Home Energy Assistance Program,

24 as authorized by the Energy Assistance Act.

25 (c) (Blank).

26 (d) (Blank).

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1 (e) All renewable energy credits procured using monies from

2 the Illinois Power Agency Renewable Energy Resources Fund shall

3 be permanently retired.

4 (f) The selection of one or more third-party program

5 managers or administrators, the selection of the independent

6 evaluator, and the procurement processes described in this

7 Section are exempt from the requirements of the Illinois

8 Procurement Code, under Section 20-10 of that Code.

9 (g) All disbursements from the Illinois Power Agency

10 Renewable Energy Resources Fund shall be made only upon

11 warrants of the Comptroller drawn upon the Treasurer as

12 custodian of the Fund upon vouchers signed by the Director or

13 by the person or persons designated by the Director for that

14 purpose. The Comptroller is authorized to draw the warrant upon

15 vouchers so signed. The Treasurer shall accept all warrants so

16 signed and shall be released from liability for all payments

17 made on those warrants.

18 (h) The Illinois Power Agency Renewable Energy Resources

19 Fund shall not be subject to sweeps, administrative charges, or

20 chargebacks, including, but not limited to, those authorized

21 under Section 8h of the State Finance Act, that would in any

22 way result in the transfer of any funds from this Fund to any

23 other fund of this State or in having any such funds utilized

24 for any purpose other than the express purposes set forth in

25 this Section.

26 (h-5) The Agency may assess fees to each bidder to recover

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1 the costs incurred in connection with a procurement process

2 held under this Section. Fees collected from bidders shall be

3 deposited into the Renewable Energy Resources Fund.

4 (i) Supplemental procurement process.

5 (1) Within 90 days after the effective date of this

6 amendatory Act of the 98th General Assembly, the Agency

7 shall develop a one-time supplemental procurement plan

8 limited to the procurement of renewable energy credits, if

9 available, from new or existing photovoltaics, including,

10 but not limited to, distributed photovoltaic generation.

11 Nothing in this subsection (i) requires procurement of wind

12 generation through the supplemental procurement.

13 Renewable energy credits procured from new

14 photovoltaics, including, but not limited to, distributed

15 photovoltaic generation, under this subsection (i) must be

16 procured from devices installed by a qualified person. In

17 its supplemental procurement plan, the Agency shall

18 establish contractually enforceable mechanisms for

19 ensuring that the installation of new photovoltaics is

20 performed by a qualified person.

21 For the purposes of this paragraph (1), "qualified

22 person" means a person who performs installations of

23 photovoltaics, including, but not limited to, distributed

24 photovoltaic generation, and who: (A) has completed an

25 apprenticeship as a journeyman electrician from a United

26 States Department of Labor registered electrical

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1 apprenticeship and training program and received a

2 certification of satisfactory completion; or (B) does not

3 currently meet the criteria under clause (A) of this

4 paragraph (1), but is enrolled in a United States

5 Department of Labor registered electrical apprenticeship

6 program, provided that the person is directly supervised by

7 a person who meets the criteria under clause (A) of this

8 paragraph (1); or (C) has obtained one of the following

9 credentials in addition to attesting to satisfactory

10 completion of at least 5 years or 8,000 hours of documented

11 hands-on electrical experience: (i) a North American Board

12 of Certified Energy Practitioners (NABCEP) Installer

13 Certificate for Solar PV; (ii) an Underwriters

14 Laboratories (UL) PV Systems Installer Certificate; (iii)

15 an Electronics Technicians Association, International

16 (ETAI) Level 3 PV Installer Certificate; or (iv) an

17 Associate in Applied Science degree from an Illinois

18 Community College Board approved community college program

19 in renewable energy or a distributed generation

20 technology.

21 For the purposes of this paragraph (1), "directly

22 supervised" means that there is a qualified person who

23 meets the qualifications under clause (A) of this paragraph

24 (1) and who is available for supervision and consultation

25 regarding the work performed by persons under clause (B) of

26 this paragraph (1), including a final inspection of the

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1 installation work that has been directly supervised to

2 ensure safety and conformity with applicable codes.

3 For the purposes of this paragraph (1), "install" means

4 the major activities and actions required to connect, in

5 accordance with applicable building and electrical codes,

6 the conductors, connectors, and all associated fittings,

7 devices, power outlets, or apparatuses mounted at the

8 premises that are directly involved in delivering energy to

9 the premises' electrical wiring from the photovoltaics,

10 including, but not limited to, to distributed photovoltaic

11 generation.

12 The renewable energy credits procured pursuant to the

13 supplemental procurement plan shall be procured using up to

14 $30,000,000 from the Illinois Power Agency Renewable

15 Energy Resources Fund. The Agency shall not plan to use

16 funds from the Illinois Power Agency Renewable Energy

17 Resources Fund in excess of the monies on deposit in such

18 fund or projected to be deposited into such fund. The

19 supplemental procurement plan shall ensure adequate,

20 reliable, affordable, efficient, and environmentally

21 sustainable renewable energy resources (including credits)

22 at the lowest total cost over time, taking into account any

23 benefits of price stability.

24 To the extent available, 50% of the renewable energy

25 credits procured from distributed renewable energy

26 generation shall come from devices of less than 25

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1 kilowatts in nameplate capacity. Procurement of renewable

2 energy credits from distributed renewable energy

3 generation devices shall be done through multi-year

4 contracts of no less than 5 years. The Agency shall create

5 credit requirements for counterparties. In order to

6 minimize the administrative burden on contracting

7 entities, the Agency shall solicit the use of third parties

8 to aggregate distributed renewable energy. These third

9 parties shall enter into and administer contracts with

10 individual distributed renewable energy generation device

11 owners. An individual distributed renewable energy

12 generation device owner shall have the ability to measure

13 the output of his or her distributed renewable energy

14 generation device.

15 In developing the supplemental procurement plan, the

16 Agency shall hold at least one workshop open to the public

17 within 90 days after the effective date of this amendatory

18 Act of the 98th General Assembly and shall consider any

19 comments made by stakeholders or the public. Upon

20 development of the supplemental procurement plan within

21 this 90-day period, copies of the supplemental procurement

22 plan shall be posted and made publicly available on the

23 Agency's and Commission's websites. All interested parties

24 shall have 14 days following the date of posting to provide

25 comment to the Agency on the supplemental procurement plan.

26 All comments submitted to the Agency shall be specific,

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1 supported by data or other detailed analyses, and, if

2 objecting to all or a portion of the supplemental

3 procurement plan, accompanied by specific alternative

4 wording or proposals. All comments shall be posted on the

5 Agency's and Commission's websites. Within 14 days

6 following the end of the 14-day review period, the Agency

7 shall revise the supplemental procurement plan as

8 necessary based on the comments received and file its

9 revised supplemental procurement plan with the Commission

10 for approval.

11 (2) Within 5 days after the filing of the supplemental

12 procurement plan at the Commission, any person objecting to

13 the supplemental procurement plan shall file an objection

14 with the Commission. Within 10 days after the filing, the

15 Commission shall determine whether a hearing is necessary.

16 The Commission shall enter its order confirming or

17 modifying the supplemental procurement plan within 90 days

18 after the filing of the supplemental procurement plan by

19 the Agency.

20 (3) The Commission shall approve the supplemental

21 procurement plan of renewable energy credits to be procured

22 from new or existing photovoltaics, including, but not

23 limited to, distributed photovoltaic generation, if the

24 Commission determines that it will ensure adequate,

25 reliable, affordable, efficient, and environmentally

26 sustainable electric service in the form of renewable

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1 energy credits at the lowest total cost over time, taking

2 into account any benefits of price stability.

3 (4) The supplemental procurement process under this

4 subsection (i) shall include each of the following

5 components:

6 (A) Procurement administrator. The Agency may

7 retain a procurement administrator in the manner set

8 forth in item (2) of subsection (a) of Section 1-75 of

9 this Act to conduct the supplemental procurement or may

10 elect to use the same procurement administrator

11 administering the Agency's annual procurement under

12 Section 1-75.

13 (B) Procurement monitor. The procurement monitor

14 retained by the Commission pursuant to Section

15 16-111.5 of the Public Utilities Act shall:

16 (i) monitor interactions among the procurement

17 administrator and bidders and suppliers;

18 (ii) monitor and report to the Commission on

19 the progress of the supplemental procurement

20 process;

21 (iii) provide an independent confidential

22 report to the Commission regarding the results of

23 the procurement events;

24 (iv) assess compliance with the procurement

25 plan approved by the Commission for the

26 supplemental procurement process;

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1 (v) preserve the confidentiality of supplier

2 and bidding information in a manner consistent

3 with all applicable laws, rules, regulations, and

4 tariffs;

5 (vi) provide expert advice to the Commission

6 and consult with the procurement administrator

7 regarding issues related to procurement process

8 design, rules, protocols, and policy-related

9 matters;

10 (vii) consult with the procurement

11 administrator regarding the development and use of

12 benchmark criteria, standard form contracts,

13 credit policies, and bid documents; and

14 (viii) perform, with respect to the

15 supplemental procurement process, any other

16 procurement monitor duties specifically delineated

17 within subsection (i) of this Section.

18 (C) Solicitation, pre-qualification, and

19 registration of bidders. The procurement administrator

20 shall disseminate information to potential bidders to

21 promote a procurement event, notify potential bidders

22 that the procurement administrator may enter into a

23 post-bid price negotiation with bidders that meet the

24 applicable benchmarks, provide supply requirements,

25 and otherwise explain the competitive procurement

26 process. In addition to such other publication as the

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1 procurement administrator determines is appropriate,

2 this information shall be posted on the Agency's and

3 the Commission's websites. The procurement

4 administrator shall also administer the

5 prequalification process, including evaluation of

6 credit worthiness, compliance with procurement rules,

7 and agreement to the standard form contract developed

8 pursuant to item (D) of this paragraph (4). The

9 procurement administrator shall then identify and

10 register bidders to participate in the procurement

11 event.

12 (D) Standard contract forms and credit terms and

13 instruments. The procurement administrator, in

14 consultation with the Agency, the Commission, and

15 other interested parties and subject to Commission

16 oversight, shall develop and provide standard contract

17 forms for the supplier contracts that meet generally

18 accepted industry practices as well as include any

19 applicable State of Illinois terms and conditions that

20 are required for contracts entered into by an agency of

21 the State of Illinois. Standard credit terms and

22 instruments that meet generally accepted industry

23 practices shall be similarly developed. Contracts for

24 new photovoltaics shall include a provision attesting

25 that the supplier will use a qualified person for the

26 installation of the device pursuant to paragraph (1) of

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1 subsection (i) of this Section. The procurement

2 administrator shall make available to the Commission

3 all written comments it receives on the contract forms,

4 credit terms, or instruments. If the procurement

5 administrator cannot reach agreement with the parties

6 as to the contract terms and conditions, the

7 procurement administrator must notify the Commission

8 of any disputed terms and the Commission shall resolve

9 the dispute. The terms of the contracts shall not be

10 subject to negotiation by winning bidders, and the

11 bidders must agree to the terms of the contract in

12 advance so that winning bids are selected solely on the

13 basis of price.

14 (E) Requests for proposals; competitive

15 procurement process. The procurement administrator

16 shall design and issue requests for proposals to supply

17 renewable energy credits in accordance with the

18 supplemental procurement plan, as approved by the

19 Commission. The requests for proposals shall set forth

20 a procedure for sealed, binding commitment bidding

21 with pay-as-bid settlement, and provision for

22 selection of bids on the basis of price, provided,

23 however, that no bid shall be accepted if it exceeds

24 the benchmark developed pursuant to item (F) of this

25 paragraph (4).

26 (F) Benchmarks. Benchmarks for each product to be

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1 procured shall be developed by the procurement

2 administrator in consultation with Commission staff,

3 the Agency, and the procurement monitor for use in this

4 supplemental procurement.

5 (G) A plan for implementing contingencies in the

6 event of supplier default, Commission rejection of

7 results, or any other cause.

8 (5) Within 2 business days after opening the sealed

9 bids, the procurement administrator shall submit a

10 confidential report to the Commission. The report shall

11 contain the results of the bidding for each of the products

12 along with the procurement administrator's recommendation

13 for the acceptance and rejection of bids based on the price

14 benchmark criteria and other factors observed in the

15 process. The procurement monitor also shall submit a

16 confidential report to the Commission within 2 business

17 days after opening the sealed bids. The report shall

18 contain the procurement monitor's assessment of bidder

19 behavior in the process as well as an assessment of the

20 procurement administrator's compliance with the

21 procurement process and rules. The Commission shall review

22 the confidential reports submitted by the procurement

23 administrator and procurement monitor and shall accept or

24 reject the recommendations of the procurement

25 administrator within 2 business days after receipt of the

26 reports.

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1 (6) Within 3 business days after the Commission

2 decision approving the results of a procurement event, the

3 Agency shall enter into binding contractual arrangements

4 with the winning suppliers using the standard form

5 contracts.

6 (7) The names of the successful bidders and the average

7 of the winning bid prices for each contract type and for

8 each contract term shall be made available to the public

9 within 2 days after the supplemental procurement event. The

10 Commission, the procurement monitor, the procurement

11 administrator, the Agency, and all participants in the

12 procurement process shall maintain the confidentiality of

13 all other supplier and bidding information in a manner

14 consistent with all applicable laws, rules, regulations,

15 and tariffs. Confidential information, including the

16 confidential reports submitted by the procurement

17 administrator and procurement monitor pursuant to this

18 Section, shall not be made publicly available and shall not

19 be discoverable by any party in any proceeding, absent a

20 compelling demonstration of need, nor shall those reports

21 be admissible in any proceeding other than one for law

22 enforcement purposes.

23 (8) The supplemental procurement provided in this

24 subsection (i) shall not be subject to the requirements and

25 limitations of subsections (c) and (d) of this Section.

26 (9) Expenses incurred in connection with the

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1 procurement process held pursuant to this Section,

2 including, but not limited to, the cost of developing the

3 supplemental procurement plan, the procurement

4 administrator, procurement monitor, and the cost of the

5 retirement of renewable energy credits purchased pursuant

6 to the supplemental procurement shall be paid for from the

7 Illinois Power Agency Renewable Energy Resources Fund. The

8 Agency shall enter into an interagency agreement with the

9 Commission to reimburse the Commission for its costs

10 associated with the procurement monitor for the

11 supplemental procurement process.

12 (Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17.)

13 (20 ILCS 3855/1-75)

14 Sec. 1-75. Planning and Procurement Bureau. The Planning

15 and Procurement Bureau has the following duties and

16 responsibilities:

17 (a) The Planning and Procurement Bureau shall each year,

18 beginning in 2008, develop procurement plans and conduct

19 competitive procurement processes in accordance with the

20 requirements of Section 16-111.5 of the Public Utilities Act

21 for the eligible retail customers of electric utilities that on

22 December 31, 2005 provided electric service to at least 100,000

23 customers in Illinois. Beginning with the delivery year

24 commencing on June 1, 2017, the Planning and Procurement Bureau

25 shall develop plans and processes for the procurement of zero

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1 emission credits from zero emission facilities in accordance

2 with the requirements of subsection (d-5) of this Section. The

3 Planning and Procurement Bureau shall also develop procurement

4 plans and conduct competitive procurement processes in

5 accordance with the requirements of Section 16-111.5 of the

6 Public Utilities Act for the eligible retail customers of small

7 multi-jurisdictional electric utilities that (i) on December

8 31, 2005 served less than 100,000 customers in Illinois and

9 (ii) request a procurement plan for their Illinois

10 jurisdictional load. This Section shall not apply to a small

11 multi-jurisdictional utility until such time as a small

12 multi-jurisdictional utility requests the Agency to prepare a

13 procurement plan for their Illinois jurisdictional load. For

14 the purposes of this Section, the term "eligible retail

15 customers" has the same definition as found in Section

16 16-111.5(a) of the Public Utilities Act.

17 Beginning with the plan or plans to be implemented in the

18 2017 delivery year, the Agency shall no longer include the

19 procurement of renewable energy resources in the annual

20 procurement plans required by this subsection (a), except as

21 provided in subsection (q) of Section 16-111.5 of the Public

22 Utilities Act and subsection (j) of this Section, and shall

23 instead develop a long-term renewable resources procurement

24 plan in accordance with subsection (c) of this Section and

25 Section 16-111.5 of the Public Utilities Act.

26 (1) The Agency shall each year, beginning in 2008, as

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1 needed, issue a request for qualifications for experts or

2 expert consulting firms to develop the procurement plans in

3 accordance with Section 16-111.5 of the Public Utilities

4 Act. In order to qualify an expert or expert consulting

5 firm must have:

6 (A) direct previous experience assembling

7 large-scale power supply plans or portfolios for

8 end-use customers;

9 (B) an advanced degree in economics, mathematics,

10 engineering, risk management, or a related area of

11 study;

12 (C) 10 years of experience in the electricity

13 sector, including managing supply risk;

14 (D) expertise in wholesale electricity market

15 rules, including those established by the Federal

16 Energy Regulatory Commission and regional transmission

17 organizations;

18 (E) expertise in credit protocols and familiarity

19 with contract protocols;

20 (F) adequate resources to perform and fulfill the

21 required functions and responsibilities; and

22 (G) the absence of a conflict of interest and

23 inappropriate bias for or against potential bidders or

24 the affected electric utilities.

25 (2) The Agency shall each year, as needed, issue a

26 request for qualifications for a procurement administrator

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1 to conduct the competitive procurement processes in

2 accordance with Section 16-111.5 of the Public Utilities

3 Act. In order to qualify an expert or expert consulting

4 firm must have:

5 (A) direct previous experience administering a

6 large-scale competitive procurement process;

7 (B) an advanced degree in economics, mathematics,

8 engineering, or a related area of study;

9 (C) 10 years of experience in the electricity

10 sector, including risk management experience;

11 (D) expertise in wholesale electricity market

12 rules, including those established by the Federal

13 Energy Regulatory Commission and regional transmission

14 organizations;

15 (E) expertise in credit and contract protocols;

16 (F) adequate resources to perform and fulfill the

17 required functions and responsibilities; and

18 (G) the absence of a conflict of interest and

19 inappropriate bias for or against potential bidders or

20 the affected electric utilities.

21 (3) The Agency shall provide affected utilities and

22 other interested parties with the lists of qualified

23 experts or expert consulting firms identified through the

24 request for qualifications processes that are under

25 consideration to develop the procurement plans and to serve

26 as the procurement administrator. The Agency shall also

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1 provide each qualified expert's or expert consulting

2 firm's response to the request for qualifications. All

3 information provided under this subparagraph shall also be

4 provided to the Commission. The Agency may provide by rule

5 for fees associated with supplying the information to

6 utilities and other interested parties. These parties

7 shall, within 5 business days, notify the Agency in writing

8 if they object to any experts or expert consulting firms on

9 the lists. Objections shall be based on:

10 (A) failure to satisfy qualification criteria;

11 (B) identification of a conflict of interest; or

12 (C) evidence of inappropriate bias for or against

13 potential bidders or the affected utilities.

14 The Agency shall remove experts or expert consulting

15 firms from the lists within 10 days if there is a

16 reasonable basis for an objection and provide the updated

17 lists to the affected utilities and other interested

18 parties. If the Agency fails to remove an expert or expert

19 consulting firm from a list, an objecting party may seek

20 review by the Commission within 5 days thereafter by filing

21 a petition, and the Commission shall render a ruling on the

22 petition within 10 days. There is no right of appeal of the

23 Commission's ruling.

24 (4) The Agency shall issue requests for proposals to

25 the qualified experts or expert consulting firms to develop

26 a procurement plan for the affected utilities and to serve

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1 as procurement administrator.

2 (5) The Agency shall select an expert or expert

3 consulting firm to develop procurement plans based on the

4 proposals submitted and shall award contracts of up to 5

5 years to those selected.

6 (6) The Agency shall select an expert or expert

7 consulting firm, with approval of the Commission, to serve

8 as procurement administrator based on the proposals

9 submitted. If the Commission rejects, within 5 days, the

10 Agency's selection, the Agency shall submit another

11 recommendation within 3 days based on the proposals

12 submitted. The Agency shall award a 5-year contract to the

13 expert or expert consulting firm so selected with

14 Commission approval.

15 (b) The experts or expert consulting firms retained by the

16 Agency shall, as appropriate, prepare procurement plans, and

17 conduct a competitive procurement process as prescribed in

18 Section 16-111.5 of the Public Utilities Act, to ensure

19 adequate, reliable, affordable, efficient, and environmentally

20 sustainable electric service at the lowest total cost over

21 time, taking into account any benefits of price stability, for

22 eligible retail customers of electric utilities that on

23 December 31, 2005 provided electric service to at least 100,000

24 customers in the State of Illinois, and for eligible Illinois

25 retail customers of small multi-jurisdictional electric

26 utilities that (i) on December 31, 2005 served less than

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1 100,000 customers in Illinois and (ii) request a procurement

2 plan for their Illinois jurisdictional load.

3 (c) Renewable portfolio standard.

4 (1)(A) The Agency shall develop a long-term renewable

5 resources procurement plan that shall include procurement

6 programs and competitive procurement events necessary to

7 meet the goals set forth in this subsection (c). The

8 initial long-term renewable resources procurement plan

9 shall be released for comment no later than 160 days after

10 June 1, 2017 (the effective date of Public Act 99-906). The

11 Agency shall review, and may revise on an expedited basis,

12 the long-term renewable resources procurement plan at

13 least every 2 years, which shall be conducted in

14 conjunction with the procurement plan under Section

15 16-111.5 of the Public Utilities Act to the extent

16 practicable to minimize administrative expense. The

17 long-term renewable resources procurement plans shall be

18 subject to review and approval by the Commission under

19 Section 16-111.5 of the Public Utilities Act.

20 (B) Subject to subparagraph (F) of this paragraph (1),

21 the long-term renewable resources procurement plan shall

22 include the goals for procurement of renewable energy

23 credits to meet at least the following overall percentages:

24 13% by the 2017 delivery year; increasing by at least 1.5%

25 each delivery year thereafter to at least 25% by the 2025

26 delivery year; increasing by at least 4% each delivery year

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1 after the 2025 delivery year to at least 45% by 2030;

2 increasing by at least 3% each delivery year after the 2030

3 delivery year to at least 60% by 2035, 75% by 2040, and 90%

4 by 2045; increasing by at least 2% each delivery year after

5 the 2045 delivery year to 100% by the 2050 delivery year

6 and continuing at 100% ~~no less than 25%~~ for each delivery

7 year thereafter. In the event of a conflict between these

8 goals and the new wind and new photovoltaic procurement

9 requirements described in items (i) through (iii) of

10 subparagraph (C) and items (i) and (ii) of subparagraph (P)

11 of this paragraph (1), the long-term plan shall prioritize

12 compliance with the new wind and new photovoltaic

13 procurement requirements described in items (i) through

14 (iii) of subparagraph (C) and items (i) and (ii) of

15 subparagraph (P) of this paragraph (1) over the annual

16 percentage targets described in this subparagraph (B). The

17 Agency shall not comply with the annual percentage targets

18 described in this subparagraph (B) by procuring renewable

19 energy credits on the spot market that are unlikely to lead

20 to the development of new renewable resources.

21 For the delivery year beginning June 1, 2017, the

22 procurement plan shall include cost-effective renewable

23 energy resources equal to at least 13% of each utility's

24 load for eligible retail customers and 13% of the

25 applicable portion of each utility's load for retail

26 customers who are not eligible retail customers, which

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1 applicable portion shall equal 50% of the utility's load

2 for retail customers who are not eligible retail customers

3 on February 28, 2017.

4 For the delivery year beginning June 1, 2018, the

5 procurement plan shall include cost-effective renewable

6 energy resources equal to at least 14.5% of each utility's

7 load for eligible retail customers and 14.5% of the

8 applicable portion of each utility's load for retail

9 customers who are not eligible retail customers, which

10 applicable portion shall equal 75% of the utility's load

11 for retail customers who are not eligible retail customers

12 on February 28, 2017.

13 For the delivery year beginning June 1, 2019, and for

14 each year thereafter, the procurement plans shall include

15 cost-effective renewable energy resources equal to a

16 minimum percentage of each utility's load for all retail

17 customers as follows: 16% by June 1, 2019; increasing by

18 1.5% each year thereafter to 25% by June 1, 2025;

19 increasing by at least 4% each year thereafter to at least

20 45% by June 1, 2030; increasing by at least 3% each year

21 thereafter to at least 90% by June 1, 2045; increasing by

22 at least 2% each year thereafter to at least 100% by June

23 1, 2050 ~~and 25% by June 1, 2026~~ and each year thereafter.

24 For each delivery year, the Agency shall first

25 recognize each utility's obligations for that delivery

26 year under existing contracts. Any renewable energy

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1 credits under existing contracts, including renewable

2 energy credits as part of renewable energy resources, shall

3 be used to meet the goals set forth in this subsection (c)

4 for the delivery year.

5 (C) Of the renewable energy credits procured under this

6 subsection (c), at least 75% shall come from wind and

7 photovoltaic projects. The long-term renewable resources

8 procurement plan described in subparagraph (A) of this

9 paragraph (1) shall include the procurement of renewable

10 energy credits in amounts equal to at least the following:

11 (i) By the end of the 2020 delivery year:

12 At least 2,000,000 renewable energy credits

13 for each delivery year shall come from new wind

14 projects; and

15 At least 2,000,000 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 generation devices or community renewable

23 generation projects; at least 40% from

24 utility-scale solar projects; at least 2% from

25 brownfield site photovoltaic projects that are not

26 community renewable generation projects; and the

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1 remainder shall be determined through the

2 long-term planning process described in

3 subparagraph (A) of this paragraph (1).

4 (ii) By the end of the 2025 delivery year:

5 At least 3,000,000 renewable energy credits

6 for each delivery year shall come from new wind

7 projects; and

8 At least 3,000,000 renewable energy credits

9 for each delivery year shall come from new

10 photovoltaic projects; of that amount, to the

11 extent possible, the Agency shall procure: at

12 least 50% from solar photovoltaic projects using

13 the program outlined in subparagraph (K) of this

14 paragraph (1) from distributed renewable energy

15 devices or community renewable generation

16 projects; at least 40% from utility-scale solar

17 projects; at least 2% from brownfield site

18 photovoltaic projects that are not community

19 renewable generation projects; and the remainder

20 shall be determined through the long-term planning

21 process described in subparagraph (A) of this

22 paragraph (1).

23 (iii) By the end of the 2030 delivery year:

24 At least 4,000,000 renewable energy credits

25 for each delivery year shall come from new wind

26 projects; and

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1 At least 4,000,000 renewable energy credits

2 for each delivery year shall come from new

3 photovoltaic projects; of that amount, to the

4 extent possible, the Agency shall procure: at

5 least 50% from solar photovoltaic projects using

6 the program outlined in subparagraph (K) of this

7 paragraph (1) from distributed renewable energy

8 devices or community renewable generation

9 projects; at least 40% from utility-scale solar

10 projects; at least 2% from brownfield site

11 photovoltaic projects that are not community

12 renewable generation projects; and the remainder

13 shall be determined through the long-term planning

14 process described in subparagraph (A) of this

15 paragraph (1).

16 For purposes of this Section:

17 "New wind projects" means wind renewable

18 energy facilities that are energized after June 1,

19 2017 for the delivery year commencing June 1, 2017

20 or within 3 years after the date the Commission

21 approves contracts for subsequent delivery years.

22 "New photovoltaic projects" means photovoltaic

23 renewable energy facilities that are energized

24 after June 1, 2017. Photovoltaic projects

25 developed under Section 1-56 of this Act shall not

26 apply towards the new photovoltaic project

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1 requirements in this subparagraph (C).

2 (D) Renewable energy credits shall be cost effective.

3 For purposes of this subsection (c), "cost effective" means

4 that the costs of procuring renewable energy resources do

5 not cause the limit stated in subparagraph (E) of this

6 paragraph (1) to be exceeded and, for renewable energy

7 credits procured through a competitive procurement event,

8 do not exceed benchmarks based on market prices for like

9 products in the region. For purposes of this subsection

10 (c), "like products" means contracts for renewable energy

11 credits from the same or substantially similar technology,

12 same or substantially similar vintage (new or existing),

13 the same or substantially similar quantity, and the same or

14 substantially similar contract length and structure.

15 Benchmarks shall be developed by the procurement

16 administrator, in consultation with the Commission staff,

17 Agency staff, and the procurement monitor and shall be

18 subject to Commission review and approval. If price

19 benchmarks for like products in the region are not

20 available, the procurement administrator shall establish

21 price benchmarks based on publicly available data on

22 regional technology costs and expected current and future

23 regional energy prices. The benchmarks in this Section

24 shall not be used to curtail or otherwise reduce

25 contractual obligations entered into by or through the

26 Agency prior to June 1, 2017 (the effective date of Public

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1 Act 99-906).

2 (E) For purposes of this subsection (c), the required

3 procurement of cost-effective renewable energy resources

4 for a particular year commencing prior to June 1, 2017

5 shall be measured as a percentage of the actual amount of

6 electricity (megawatt-hours) supplied by the electric

7 utility to eligible retail customers in the delivery year

8 ending immediately prior to the procurement, and, for

9 delivery years commencing on and after June 1, 2017, the

10 required procurement of cost-effective renewable energy

11 resources for a particular year shall be measured as a

12 percentage of the actual amount of electricity

13 (megawatt-hours) delivered by the electric utility in the

14 delivery year ending immediately prior to the procurement,

15 to all retail customers in its service territory. For

16 purposes of this subsection (c), the amount paid per

17 kilowatthour means the total amount paid for electric

18 service expressed on a per kilowatthour basis. For purposes

19 of this subsection (c), the total amount paid for electric

20 service includes without limitation amounts paid for

21 supply, transmission, distribution, surcharges, and add-on

22 taxes.

23 Notwithstanding the requirements of this subsection

24 (c), the total of renewable energy resources procured under

25 the procurement plan for any single year shall be subject

26 to the limitations of this subparagraph (E). Such

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1 procurement shall be reduced for all retail customers based

2 on the amount necessary to limit the annual estimated

3 average net increase due to the costs of these resources

4 included in the amounts paid by eligible retail customers

5 in connection with electric service to no more than the

6 greater of 2.015% of the amount paid per kilowatthour by

7 those customers during the year ending May 31, 2007 or the

8 incremental amount per kilowatthour paid for these

9 resources in 2011. To arrive at a maximum dollar amount of

10 renewable energy resources to be procured for the

11 particular delivery year, the resulting per kilowatthour

12 amount shall be applied to the actual amount of

13 kilowatthours of electricity delivered, or applicable

14 portion of such amount as specified in paragraph (1) of

15 this subsection (c), as applicable, by the electric utility

16 in the delivery year immediately prior to the procurement

17 to all retail customers in its service territory. The

18 calculations required by this subparagraph (E) shall be

19 made only once for each delivery year at the time that the

20 renewable energy resources are procured. Once the

21 determination as to the amount of renewable energy

22 resources to procure is made based on the calculations set

23 forth in this subparagraph (E) and the contracts procuring

24 those amounts are executed, no subsequent rate impact

25 determinations shall be made and no adjustments to those

26 contract amounts shall be allowed. All costs incurred under

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1 such contracts shall be fully recoverable by the electric

2 utility as provided in this Section.

3 (F) If the limitation on the amount of renewable energy

4 resources procured in subparagraph (E) of this paragraph

5 (1) prevents the Agency from meeting all of the goals in

6 this subsection (c), the Agency's long-term plan shall

7 prioritize compliance with the requirements of this

8 subsection (c) regarding renewable energy credits in the

9 following order:

10 (i) renewable energy credits under existing

11 contractual obligations;

12 (i-5) funding for the Illinois Solar for All

13 Program, as described in subparagraph (O) of this

14 paragraph (1);

15 (ii) renewable energy credits necessary to comply

16 with the new wind and new photovoltaic procurement

17 requirements described in items (i) through (iii) of

18 subparagraph (C) of this paragraph (1); ~~and~~

19 (ii-5) renewable energy credits necessary to

20 comply with the new wind and new photovoltaic

21 procurement requirements described in subparagraph (P)

22 of this paragraph (1); and

23 (iii) renewable energy credits necessary to meet

24 the remaining requirements of this subsection (c).

25 (G) The following provisions shall apply to the

26 Agency's procurement of renewable energy credits under

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1 this subsection (c):

2 (i) Notwithstanding whether a long-term renewable

3 resources procurement plan has been approved, the

4 Agency shall conduct an initial forward procurement

5 for renewable energy credits from new utility-scale

6 wind projects within 160 days after June 1, 2017 (the

7 effective date of Public Act 99-906). For the purposes

8 of this initial forward procurement, the Agency shall

9 solicit 15-year contracts for delivery of 1,000,000

10 renewable energy credits delivered annually from new

11 utility-scale wind projects to begin delivery on June

12 1, 2019, if available, but not later than June 1, 2021.

13 Payments to suppliers of renewable energy credits

14 shall commence upon delivery. Renewable energy credits

15 procured under this initial procurement shall be

16 included in the Agency's long-term plan and shall apply

17 to all renewable energy goals in this subsection (c).

18 (ii) Notwithstanding whether a long-term renewable

19 resources procurement plan has been approved, the

20 Agency shall conduct an initial forward procurement

21 for renewable energy credits from new utility-scale

22 solar projects and brownfield site photovoltaic

23 projects within one year after June 1, 2017 (the

24 effective date of Public Act 99-906). For the purposes

25 of this initial forward procurement, the Agency shall

26 solicit 15-year contracts for delivery of 1,000,000

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1 renewable energy credits delivered annually from new

2 utility-scale solar projects and brownfield site

3 photovoltaic projects to begin delivery on June 1,

4 2019, if available, but not later than June 1, 2021.

5 The Agency may structure this initial procurement in

6 one or more discrete procurement events. Payments to

7 suppliers of renewable energy credits shall commence

8 upon delivery. Renewable energy credits procured under

9 this initial procurement shall be included in the

10 Agency's long-term plan and shall apply to all

11 renewable energy goals in this subsection (c).

12 (iii) Subsequent forward procurements for

13 utility-scale wind projects shall solicit at least

14 1,000,000 renewable energy credits delivered annually

15 per procurement event and shall be planned, scheduled,

16 and designed such that the cumulative amount of

17 renewable energy credits delivered from all new wind

18 projects in each delivery year shall not exceed the

19 Agency's projection of the cumulative amount of

20 renewable energy credits that will be delivered from

21 all new photovoltaic projects, including utility-scale

22 and distributed photovoltaic devices, in the same

23 delivery year at the time scheduled for wind contract

24 delivery.

25 (iv) If, at any time after the time set for

26 delivery of renewable energy credits pursuant to the

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1 initial procurements in items (i) and (ii) of this

2 subparagraph (G), the cumulative amount of renewable

3 energy credits projected to be delivered from all new

4 wind projects in a given delivery year exceeds the

5 cumulative amount of renewable energy credits

6 projected to be delivered from all new photovoltaic

7 projects in that delivery year by 200,000 or more

8 renewable energy credits, then the Agency shall within

9 60 days adjust the procurement programs in the

10 long-term renewable resources procurement plan to

11 ensure that the projected cumulative amount of

12 renewable energy credits to be delivered from all new

13 wind projects does not exceed the projected cumulative

14 amount of renewable energy credits to be delivered from

15 all new photovoltaic projects by 200,000 or more

16 renewable energy credits, provided that nothing in

17 this Section shall preclude the projected cumulative

18 amount of renewable energy credits to be delivered from

19 all new photovoltaic projects from exceeding the

20 projected cumulative amount of renewable energy

21 credits to be delivered from all new wind projects in

22 each delivery year and provided further that nothing in

23 this item (iv) shall require the curtailment of an

24 executed contract. The Agency shall update, on a

25 quarterly basis, its projection of the renewable

26 energy credits to be delivered from all projects in

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1 each delivery year. Notwithstanding anything to the

2 contrary, the Agency may adjust the timing of

3 procurement events conducted under this subparagraph

4 (G). The long-term renewable resources procurement

5 plan shall set forth the process by which the

6 adjustments may be made.

7 (v) All procurements under this subparagraph (G)

8 shall comply with the geographic requirements in

9 subparagraph (I) of this paragraph (1) and shall follow

10 the procurement processes and procedures described in

11 this Section and Section 16-111.5 of the Public

12 Utilities Act to the extent practicable, and these

13 processes and procedures may be expedited to

14 accommodate the schedule established by this

15 subparagraph (G).

16 (H) The procurement of renewable energy resources for a

17 given delivery year shall be reduced as described in this

18 subparagraph (H) if an alternative retail electric

19 supplier meets the requirements described in this

20 subparagraph (H).

21 (i) Within 45 days after June 1, 2017 (the

22 effective date of Public Act 99-906), an alternative

23 retail electric supplier or its successor shall submit

24 an informational filing to the Illinois Commerce

25 Commission certifying that, as of December 31, 2015,

26 the alternative retail electric supplier owned one or

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1 more electric generating facilities that generates

2 renewable energy resources as defined in Section 1-10

3 of this Act, provided that such facilities are not

4 powered by wind or photovoltaics, and the facilities

5 generate one renewable energy credit for each

6 megawatthour of energy produced from the facility.

7 The informational filing shall identify each

8 facility that was eligible to satisfy the alternative

9 retail electric supplier's obligations under Section

10 16-115D of the Public Utilities Act as described in

11 this item (i).

12 (ii) For a given delivery year, the alternative

13 retail electric supplier may elect to supply its retail

14 customers with renewable energy credits from the

15 facility or facilities described in item (i) of this

16 subparagraph (H) that continue to be owned by the

17 alternative retail electric supplier.

18 (iii) The alternative retail electric supplier

19 shall notify the Agency and the applicable utility, no

20 later than February 28 of the year preceding the

21 applicable delivery year or 15 days after June 1, 2017

22 (the effective date of Public Act 99-906), whichever is

23 later, of its election under item (ii) of this

24 subparagraph (H) to supply renewable energy credits to

25 retail customers of the utility. Such election shall

26 identify the amount of renewable energy credits to be

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1 supplied by the alternative retail electric supplier

2 to the utility's retail customers and the source of the

3 renewable energy credits identified in the

4 informational filing as described in item (i) of this

5 subparagraph (H), subject to the following

6 limitations:

7 For the delivery year beginning June 1, 2018,

8 the maximum amount of renewable energy credits to

9 be supplied by an alternative retail electric

10 supplier under this subparagraph (H) shall be 68%

11 multiplied by 25% multiplied by 14.5% multiplied

12 by the amount of metered electricity

13 (megawatt-hours) delivered by the alternative

14 retail electric supplier to Illinois retail

15 customers during the delivery year ending May 31,

16 2016.

17 For delivery years beginning June 1, 2019 and

18 each year thereafter, the maximum amount of

19 renewable energy credits to be supplied by an

20 alternative retail electric supplier under this

21 subparagraph (H) shall be 68% multiplied by 50%

22 multiplied by 16% multiplied by the amount of

23 metered electricity (megawatt-hours) delivered by

24 the alternative retail electric supplier to

25 Illinois retail customers during the delivery year

26 ending May 31, 2016, provided that the 16% value

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1 shall increase by 1.5% each delivery year

2 thereafter to 25% by the delivery year beginning

3 June 1, 2025, and thereafter the 25% value shall

4 apply to each delivery year.

5 For each delivery year, the total amount of

6 renewable energy credits supplied by all alternative

7 retail electric suppliers under this subparagraph (H)

8 shall not exceed 9% of the Illinois target renewable

9 energy credit quantity. The Illinois target renewable

10 energy credit quantity for the delivery year beginning

11 June 1, 2018 is 14.5% multiplied by the total amount of

12 metered electricity (megawatt-hours) delivered in the

13 delivery year immediately preceding that delivery

14 year, provided that the 14.5% shall increase by 1.5%

15 each delivery year thereafter to 25% by the delivery

16 year beginning June 1, 2025, and thereafter the 25%

17 value shall apply to each delivery year.

18 If the requirements set forth in items (i) through

19 (iii) of this subparagraph (H) are met, the charges

20 that would otherwise be applicable to the retail

21 customers of the alternative retail electric supplier

22 under paragraph (6) of this subsection (c) for the

23 applicable delivery year shall be reduced by the ratio

24 of the quantity of renewable energy credits supplied by

25 the alternative retail electric supplier compared to

26 that supplier's target renewable energy credit

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1 quantity. The supplier's target renewable energy

2 credit quantity for the delivery year beginning June 1,

3 2018 is 14.5% multiplied by the total amount of metered

4 electricity (megawatt-hours) delivered by the

5 alternative retail supplier in that delivery year,

6 provided that the 14.5% shall increase by 1.5% each

7 delivery year thereafter to 25% by the delivery year

8 beginning June 1, 2025, and thereafter the 25% value

9 shall apply to each delivery year.

10 On or before April 1 of each year, the Agency shall

11 annually publish a report on its website that

12 identifies the aggregate amount of renewable energy

13 credits supplied by alternative retail electric

14 suppliers under this subparagraph (H).

15 (I) The Agency shall design its long-term renewable

16 energy procurement plan to maximize the State's interest in

17 the health, safety, and welfare of its residents, including

18 but not limited to minimizing sulfur dioxide, nitrogen

19 oxide, particulate matter and other pollution that

20 adversely affects public health in this State, increasing

21 fuel and resource diversity in this State, enhancing the

22 reliability and resiliency of the electricity distribution

23 system in this State, meeting goals to limit carbon dioxide

24 emissions under federal or State law, and contributing to a

25 cleaner and healthier environment for the citizens of this

26 State. In order to further these legislative purposes,

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1 renewable energy credits shall be eligible to be counted

2 toward the renewable energy requirements of this

3 subsection (c) if they are generated from facilities

4 located in this State. The Agency may qualify renewable

5 energy credits from facilities located in states adjacent

6 to Illinois if the generator demonstrates and the Agency

7 determines that the operation of such facility or

8 facilities will help promote the State's interest in the

9 health, safety, and welfare of its residents based on the

10 public interest criteria described above. To ensure that

11 the public interest criteria are applied to the procurement

12 and given full effect, the Agency's long-term procurement

13 plan shall describe in detail how each public interest

14 factor shall be considered and weighted for facilities

15 located in states adjacent to Illinois.

16 (J) In order to promote the competitive development of

17 renewable energy resources in furtherance of the State's

18 interest in the health, safety, and welfare of its

19 residents, renewable energy credits shall not be eligible

20 to be counted toward the renewable energy requirements of

21 this subsection (c) if they are sourced from a generating

22 unit whose costs were being recovered through rates

23 regulated by this State or any other state or states on or

24 after January 1, 2017. Each contract executed to purchase

25 renewable energy credits under this subsection (c) shall

26 provide for the contract's termination if the costs of the

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1 generating unit supplying the renewable energy credits

2 subsequently begin to be recovered through rates regulated

3 by this State or any other state or states; and each

4 contract shall further provide that, in that event, the

5 supplier of the credits must return 110% of all payments

6 received under the contract. Amounts returned under the

7 requirements of this subparagraph (J) shall be retained by

8 the utility and all of these amounts shall be used for the

9 procurement of additional renewable energy credits from

10 new wind or new photovoltaic resources as defined in this

11 subsection (c). The long-term plan shall provide that these

12 renewable energy credits shall be procured in the next

13 procurement event.

14 Notwithstanding the limitations of this subparagraph

15 (J), renewable energy credits sourced from generating

16 units that are constructed, purchased, owned, or leased by

17 an electric utility as part of an approved project,

18 program, or pilot under Section 1-56 of this Act shall be

19 eligible to be counted toward the renewable energy

20 requirements of this subsection (c), regardless of how the

21 costs of these units are recovered.

22 (K) The long-term renewable resources procurement plan

23 developed by the Agency in accordance with subparagraph (A)

24 of this paragraph (1) shall include an Adjustable Block

25 program for the procurement of renewable energy credits

26 from new photovoltaic projects that are distributed

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1 renewable energy generation devices or new photovoltaic

2 community renewable generation projects. The Adjustable

3 Block program shall be designed to provide a transparent

4 schedule of prices and quantities to enable the

5 photovoltaic market to scale up and for renewable energy

6 credit prices to adjust at a predictable rate over time.

7 The prices set by the Adjustable Block program can be

8 reflected as a set value or as the product of a formula.

9 The Adjustable Block program shall include for each

10 category of eligible projects: a schedule of standard block

11 purchase prices to be offered; a series of steps, with

12 associated nameplate capacity and purchase prices that

13 adjust from step to step; and automatic opening of the next

14 step as soon as the nameplate capacity and available

15 purchase prices for an open step are fully committed or

16 reserved. Only projects energized on or after June 1, 2017

17 shall be eligible for the Adjustable Block program. For

18 each block group the Agency shall determine the number of

19 blocks, the amount of generation capacity in each block,

20 and the purchase price for each block, provided that the

21 purchase price provided and the total amount of generation

22 in all blocks for all block groups shall be sufficient to

23 meet the goals in this subsection (c). The Agency may

24 periodically review its prior decisions establishing the

25 number of blocks, the amount of generation capacity in each

26 block, and the purchase price for each block, and may

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1 propose, on an expedited basis, changes to these previously

2 set values, including but not limited to redistributing

3 these amounts and the available funds as necessary and

4 appropriate, subject to Commission approval as part of the

5 periodic plan revision process described in Section

6 16-111.5 of the Public Utilities Act. The Agency may define

7 different block sizes, purchase prices, or other distinct

8 terms and conditions for projects located in different

9 utility service territories if the Agency deems it

10 necessary to meet the goals in this subsection (c).

11 The Adjustable Block program shall include at least the

12 following block groups in at least the following amounts,

13 which may be adjusted upon review by the Agency and

14 approval by the Commission as described in this

15 subparagraph (K):

16 (i) At least 25% from distributed renewable energy

17 generation devices with a nameplate capacity of no more

18 than 10 kilowatts.

19 (ii) At least 25% from distributed renewable

20 energy generation devices with a nameplate capacity of

21 more than 10 kilowatts and no more than 2,000

22 kilowatts. The Agency may create sub-categories within

23 this category to account for the differences between

24 projects for small commercial customers, large

25 commercial customers, and public or non-profit

26 customers.

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1 (iii) At least 25% from photovoltaic community

2 renewable generation projects.

3 (iv) The remaining 25% shall be allocated as

4 specified by the Agency in the long-term renewable

5 resources procurement plan.

6 The Adjustable Block program shall be designed to

7 ensure that renewable energy credits are procured from

8 photovoltaic distributed renewable energy generation

9 devices and new photovoltaic community renewable energy

10 generation projects in diverse locations, including urban

11 and rural areas, and are not concentrated in a few

12 geographic areas or excluding particular geographic areas.

13 The Adjustable Block Program shall be designed to

14 prioritize the procurement of renewable energy credits

15 from new photovoltaic community renewable energy projects

16 that are organized by local communities, sited in the

17 communities they serve, or are also brownfield site

18 photovoltaic projects, as defined in Section 1-10 of this

19 Act, for a portion of the overall renewable energy credits

20 to be procured from new photovoltaic community renewable

21 energy projects.

22 (L) The procurement of photovoltaic renewable energy

23 credits under items (i) through (iv) of subparagraph (K) of

24 this paragraph (1) shall be subject to the following

25 contract and payment terms:

26 (i) The Agency shall procure contracts of at least

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1 15 years in length.

2 (ii) For those renewable energy credits that

3 qualify and are procured under item (i) of subparagraph

4 (K) of this paragraph (1), the renewable energy credit

5 purchase price shall be paid in full by the contracting

6 utilities at the time that the facility producing the

7 renewable energy credits is interconnected at the

8 distribution system level of the utility and

9 energized. The electric utility shall receive and

10 retire all renewable energy credits generated by the

11 project for the first 15 years of operation.

12 (iii) For those renewable energy credits that

13 qualify and are procured under item (ii) and (iii) of

14 subparagraph (K) of this paragraph (1) and any

15 additional categories of distributed generation

16 included in the long-term renewable resources

17 procurement plan and approved by the Commission, 20

18 percent of the renewable energy credit purchase price

19 shall be paid by the contracting utilities at the time

20 that the facility producing the renewable energy

21 credits is interconnected at the distribution system

22 level of the utility and energized. The remaining

23 portion shall be paid ratably over the subsequent

24 4-year period. The electric utility shall receive and

25 retire all renewable energy credits generated by the

26 project for the first 15 years of operation.

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1 (iv) Each contract shall include provisions to

2 ensure the delivery of the renewable energy credits for

3 the full term of the contract.

4 (v) The utility shall be the counterparty to the

5 contracts executed under this subparagraph (L) that

6 are approved by the Commission under the process

7 described in Section 16-111.5 of the Public Utilities

8 Act. No contract shall be executed for an amount that

9 is less than one renewable energy credit per year.

10 (vi) If, at any time, approved applications for the

11 Adjustable Block program exceed funds collected by the

12 electric utility or would cause the Agency to exceed

13 the limitation described in subparagraph (E) of this

14 paragraph (1) on the amount of renewable energy

15 resources that may be procured, then the Agency shall

16 consider future uncommitted funds to be reserved for

17 these contracts on a first-come, first-served basis,

18 with the delivery of renewable energy credits required

19 beginning at the time that the reserved funds become

20 available.

21 (vii) Nothing in this Section shall require the

22 utility to advance any payment or pay any amounts that

23 exceed the actual amount of revenues collected by the

24 utility under paragraph (6) of this subsection (c) and

25 subsection (k) of Section 16-108 of the Public

26 Utilities Act, and contracts executed under this

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1 Section shall expressly incorporate this limitation.

2 (M) The Agency shall be authorized to retain one or

3 more experts or expert consulting firms to develop,

4 administer, implement, operate, and evaluate the

5 Adjustable Block program described in subparagraph (K) of

6 this paragraph (1), and the Agency shall retain the

7 consultant or consultants in the same manner, to the extent

8 practicable, as the Agency retains others to administer

9 provisions of this Act, including, but not limited to, the

10 procurement administrator. The selection of experts and

11 expert consulting firms and the procurement process

12 described in this subparagraph (M) are exempt from the

13 requirements of Section 20-10 of the Illinois Procurement

14 Code, under Section 20-10 of that Code. The Agency shall

15 strive to minimize administrative expenses in the

16 implementation of the Adjustable Block program.

17 The Agency and its consultant or consultants shall

18 monitor block activity, share program activity with

19 stakeholders and conduct regularly scheduled meetings to

20 discuss program activity and market conditions. If

21 necessary, the Agency may make prospective administrative

22 adjustments to the Adjustable Block program design, such as

23 redistributing available funds or making adjustments to

24 purchase prices as necessary to achieve the goals of this

25 subsection (c). Program modifications to any price,

26 capacity block, or other program element that do not

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1 deviate from the Commission's approved value by more than

2 25% shall take effect immediately and are not subject to

3 Commission review and approval. Program modifications to

4 any price, capacity block, or other program element that

5 deviate more than 25% from the Commission's approved value

6 must be approved by the Commission as a long-term plan

7 amendment under Section 16-111.5 of the Public Utilities

8 Act. The Agency shall consider stakeholder feedback when

9 making adjustments to the Adjustable Block design and shall

10 notify stakeholders in advance of any planned changes.

11 (N) The long-term renewable resources procurement plan

12 required by this subsection (c) shall include a community

13 renewable generation program. The Agency shall establish

14 the terms, conditions, and program requirements for

15 community renewable generation projects with a goal to

16 expand renewable energy generating facility access to a

17 broader group of energy consumers, to ensure robust

18 participation opportunities for residential and small

19 commercial customers and those who cannot install

20 renewable energy on their own properties. Any plan approved

21 by the Commission shall allow subscriptions to community

22 renewable generation projects to be portable and

23 transferable. For purposes of this subparagraph (N),

24 "portable" means that subscriptions may be retained by the

25 subscriber even if the subscriber relocates or changes its

26 address within the same utility service territory; and

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1 "transferable" means that a subscriber may assign or sell

2 subscriptions to another person within the same utility

3 service territory.

4 Electric utilities shall provide a monetary credit to a

5 subscriber's subsequent bill for service for the

6 proportional output of a community renewable generation

7 project attributable to that subscriber as specified in

8 Section 16-107.5 of the Public Utilities Act.

9 The Agency shall purchase renewable energy credits

10 from subscribed shares of photovoltaic community renewable

11 generation projects through the Adjustable Block program

12 described in subparagraph (K) of this paragraph (1) or

13 through the Illinois Solar for All Program described in

14 Section 1-56 of this Act. The electric utility shall

15 purchase any unsubscribed energy from community renewable

16 generation projects that are Qualifying Facilities ("QF")

17 under the electric utility's tariff for purchasing the

18 output from QFs under Public Utilities Regulatory Policies

19 Act of 1978.

20 The owners of and any subscribers to a community

21 renewable generation project shall not be considered

22 public utilities or alternative retail electricity

23 suppliers under the Public Utilities Act solely as a result

24 of their interest in or subscription to a community

25 renewable generation project and shall not be required to

26 become an alternative retail electric supplier by

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1 participating in a community renewable generation project

2 with a public utility.

3 (O) For the delivery year beginning June 1, 2018, the

4 long-term renewable resources procurement plan required by

5 this subsection (c) shall provide for the Agency to procure

6 contracts to continue offering the Illinois Solar for All

7 Program described in subsection (b) of Section 1-56 of this

8 Act, and the contracts approved by the Commission shall be

9 executed by the utilities that are subject to this

10 subsection (c). The long-term renewable resources

11 procurement plan shall allocate 5% of the funds available

12 under the plan for the applicable delivery year, or

13 $10,000,000 per delivery year, whichever is greater, to

14 fund the programs, and the plan shall determine the amount

15 of funding to be apportioned to the programs identified in

16 subsection (b) of Section 1-56 of this Act; provided that

17 for the delivery years beginning June 1, 2017, June 1,

18 2021, and June 1, 2025, the long-term renewable resources

19 procurement plan shall allocate 10% of the funds available

20 under the plan for the applicable delivery year, or

21 $20,000,000 per delivery year, whichever is greater, and

22 $10,000,000 of such funds in such year shall be used by an

23 electric utility that serves more than 3,000,000 retail

24 customers in the State to implement a Commission-approved

25 plan under Section 16-108.12 of the Public Utilities Act.

26 In making the determinations required under this

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1 subparagraph (O), the Commission shall consider the

2 experience and performance under the programs and any

3 evaluation reports. The Commission shall also provide for

4 an independent evaluation of those programs on a periodic

5 basis that are funded under this subparagraph (O).

6 (P) For the delivery year beginning June 1, 2021, the

7 long-term renewable resources procurement plan required by

8 this subsection (c) shall also include and account for the

9 annual procurement of new long-term contracts, including

10 bundled contracts, as described in subsection (j) of this

11 Section, from new wind projects and new photovoltaic

12 projects such that, by the end of the 2030 delivery year:

13 (i) at least 25,000,000 renewable energy credits

14 for each delivery year shall come from new wind

15 projects; and

16 (ii) at least 25,000,000 renewable energy credits

17 for each delivery year shall come from new photovoltaic

18 projects.

19 The gradual increase in renewable resource procurement

20 discussed in this subparagraph (P) shall involve annual

21 procurements of new wind and new photovoltaic projects and,

22 in the case of the Adjustable Block Program created by

23 subparagraph (K) of this subsection (c), the annual release

24 of new blocks of capacity each year with the goal of

25 encouraging stability and steady growth in the solar market

26 and avoiding boom-bust cycles.

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1 In developing the long-term renewable resources

2 procurement plan, the Agency shall develop bidding

3 criteria to account for the ability of new photovoltaic and

4 wind projects to deliver additional benefits for Illinois

5 such as agriculture and pollinator-friendly projects,

6 brownfield redevelopment, water-pollution buffers, and

7 other land-use or environmental benefits.

8 In this Section:

9 "New wind projects" means wind renewable energy

10 facilities that are energized after June 1, 2017 for the

11 delivery year commencing June 1, 2017 or within 3 years

12 after the date the Commission approves contracts for

13 subsequent delivery years.

14 "New photovoltaic projects" means photovoltaic

15 renewable energy facilities that are energized after June

16 1, 2017.

17 (Q) Beginning with the 2019 update to the long-term

18 renewable resources procurement plan required by this

19 subsection (c), the Agency shall evaluate the budget

20 necessary to fund:

21 (i) purchases of renewable energy credits under

22 existing contractual obligations;

23 (ii) the Illinois Solar for All Program, related

24 grassroots education and expansion goals under Section

25 1-56(b)(2-8) of the Illinois Power Agency Act;

26 (iii) purchases of renewable energy credits

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1 necessary to comply with the new wind and new

2 photovoltaic project requirements described in items

3 (i) through (iii) of subparagraph (C) of this paragraph

4 (1); and

5 (iv) purchases of renewable energy credits

6 necessary to comply with the new wind project and new

7 photovoltaic project procurement requirements

8 described in subparagraph (P) of this paragraph (1).

9 Following the delivery year 2021, the Agency shall

10 review the budget necessary to fund items (i) through (iv)

11 of this subparagraph (Q) to determine if that budget

12 exceeds the limitation on the amount of renewable energy

13 resources procured in subparagraph (E) of this paragraph

14 (1) when combined with savings achieved by the carbon-free

15 resources procured in subsection (k) of this Section. If

16 so, the Agency shall propose an alternative limitation

17 which the Commission shall review and approve if the

18 Commission finds an alternative limitation is necessary to

19 achieve the requirements of items (i) through (iv) of this

20 subparagraph (Q). The Commission shall find an alternative

21 limitation necessary only if it determines it is a

22 cost-effective way to achieve the goals of subsection (c)

23 and paragraphs (2) through (8) of subsection (b) and as

24 part of the review of the Agency's procurement plan for the

25 delivery year following the year in which the Agency

26 concludes an alternative limitation is necessary as

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1 described by the procurement process contained in Section

2 16-111.5 of the Public Utilities Act.

3 (1.5) No later than May 31, 2021, all Illinois electric

4 cooperatives and municipal utilities shall develop a plan

5 to ensure that their members and customers have access to

6 renewable energy on a reasonably equivalent basis to all

7 other residents in the State, including the overall

8 percentage goals listed in subparagraph (A) of paragraph

9 (1) of this Section and the carbon-free resources goals of

10 subsection (k) of this Section 1-75. These plans shall be

11 developed through a public process involving municipal

12 utility and cooperative members, customers, and other

13 members of the public, and shall be filed with the Illinois

14 Commerce Commission at least every 2 years.

15 (2) (Blank).

16 (3) (Blank).

17 (4) The electric utility shall retire all renewable

18 energy credits used to comply with the standard.

19 (5) Beginning with the 2010 delivery year and ending

20 June 1, 2017, an electric utility subject to this

21 subsection (c) shall apply the lesser of the maximum

22 alternative compliance payment rate or the most recent

23 estimated alternative compliance payment rate for its

24 service territory for the corresponding compliance period,

25 established pursuant to subsection (d) of Section 16-115D

26 of the Public Utilities Act to its retail customers that

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1 take service pursuant to the electric utility's hourly

2 pricing tariff or tariffs. The electric utility shall

3 retain all amounts collected as a result of the application

4 of the alternative compliance payment rate or rates to such

5 customers, and, beginning in 2011, the utility shall

6 include in the information provided under item (1) of

7 subsection (d) of Section 16-111.5 of the Public Utilities

8 Act the amounts collected under the alternative compliance

9 payment rate or rates for the prior year ending May 31.

10 Notwithstanding any limitation on the procurement of

11 renewable energy resources imposed by item (2) of this

12 subsection (c), the Agency shall increase its spending on

13 the purchase of renewable energy resources to be procured

14 by the electric utility for the next plan year by an amount

15 equal to the amounts collected by the utility under the

16 alternative compliance payment rate or rates in the prior

17 year ending May 31.

18 (6) The electric utility shall be entitled to recover

19 all of its costs associated with the procurement of

20 renewable energy credits under plans approved under this

21 Section and Section 16-111.5 of the Public Utilities Act.

22 These costs shall include associated reasonable expenses

23 for implementing the procurement programs, including, but

24 not limited to, the costs of administering and evaluating

25 the Adjustable Block program, through an automatic

26 adjustment clause tariff in accordance with subsection (k)

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1 of Section 16-108 of the Public Utilities Act.

2 (7) Renewable energy credits procured from new

3 photovoltaic projects or new distributed renewable energy

4 generation devices under this Section after June 1, 2017

5 (the effective date of Public Act 99-906) must be procured

6 from devices installed by a qualified person in compliance

7 with the requirements of Section 16-128A of the Public

8 Utilities Act and any rules or regulations adopted

9 thereunder.

10 In meeting the renewable energy requirements of this

11 subsection (c), to the extent feasible and consistent with

12 State and federal law, the renewable energy credit

13 procurements, Adjustable Block solar program, and

14 community renewable generation program shall provide

15 employment opportunities for all segments of the

16 population and workforce, including minority-owned and

17 female-owned business enterprises, and shall not,

18 consistent with State and federal law, discriminate based

19 on race or socioeconomic status. Specifically, as the

20 Agency conducts competitive procurement processes and

21 implements programs to procure renewable energy credits

22 identified in the long-term renewable resources

23 procurement plan, the Agency must preference the

24 procurement of renewable energy credits from those

25 Approved Vendors and companies that meet multiple Equity

26 Actions, including, but not limited to, the following:

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1 (A) Hiring Equity Action: 30% of the company's

2 workforce (measured by FTEs) are people of color

3 (members of a racial or ethnic minority group) and

4 receive at or above the prevailing wage.

5 (B) Clean Jobs Workforce Hubs Action: 30% of the

6 workers associated with the project are graduates or

7 trainees from the Clean Jobs Workforce Hubs programs,

8 or equivalent certification, and paid at or above the

9 prevailing wage.

10 (C) Disadvantaged Business Enterprise Action:

11 being an entity defined under Section 2 of the Business

12 Enterprise for Minorities, Women, and Persons with

13 Disabilities Act.

14 (D) Contracting Equity Action: 51% of the

15 company's subcontractors or vendors are entities

16 defined under Section 2 of the Business Enterprise for

17 Minorities, Women, and Persons with Disabilities Act

18 or 30% of the workers associated with the project,

19 including from all subcontractors and vendors, are

20 people of color (members of a racial or ethnic minority

21 group).

22 (E) Community Benefits Action: (i) for projects

23 100kW in size or larger, project has an executed

24 Community Benefits Agreement that could include, but

25 is not limited to, a commitment to hire local workers,

26 union workers, displaced fossil fuel workers

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1 transitioning to clean energy work, or Clean Jobs

2 Workforce Hubs graduates, a commitment to pay workers

3 at or above the prevailing wage, and a commitment to

4 give communities ownership opportunities in clean

5 energy projects; and (ii) for projects under 100kW in

6 size, companies pay their workforce at or above the

7 prevailing wage.

8 (F) Small Business Action: company's workforce is

9 comprised of 3 or fewer full-time employees.

10 (d) Clean coal portfolio standard.

11 (1) The procurement plans shall include electricity

12 generated using clean coal. Each utility shall enter into

13 one or more sourcing agreements with the initial clean coal

14 facility, as provided in paragraph (3) of this subsection

15 (d), covering electricity generated by the initial clean

16 coal facility representing at least 5% of each utility's

17 total supply to serve the load of eligible retail customers

18 in 2015 and each year thereafter, as described in paragraph

19 (3) of this subsection (d), subject to the limits specified

20 in paragraph (2) of this subsection (d). It is the goal of

21 the State that by January 1, 2025, 25% of the electricity

22 used in the State shall be generated by cost-effective

23 clean coal facilities. For purposes of this subsection (d),

24 "cost-effective" means that the expenditures pursuant to

25 such sourcing agreements do not cause the limit stated in

26 paragraph (2) of this subsection (d) to be exceeded and do

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1 not exceed cost-based benchmarks, which shall be developed

2 to assess all expenditures pursuant to such sourcing

3 agreements covering electricity generated by clean coal

4 facilities, other than the initial clean coal facility, by

5 the procurement administrator, in consultation with the

6 Commission staff, Agency staff, and the procurement

7 monitor and shall be subject to Commission review and

8 approval.

9 A utility party to a sourcing agreement shall

10 immediately retire any emission credits that it receives in

11 connection with the electricity covered by such agreement.

12 Utilities shall maintain adequate records documenting

13 the purchases under the sourcing agreement to comply with

14 this subsection (d) and shall file an accounting with the

15 load forecast that must be filed with the Agency by July 15

16 of each year, in accordance with subsection (d) of Section

17 16-111.5 of the Public Utilities Act.

18 A utility shall be deemed to have complied with the

19 clean coal portfolio standard specified in this subsection

20 (d) if the utility enters into a sourcing agreement as

21 required by this subsection (d).

22 (2) For purposes of this subsection (d), the required

23 execution of sourcing agreements with the initial clean

24 coal facility for a particular year shall be measured as a

25 percentage of the actual amount of electricity

26 (megawatt-hours) supplied by the electric utility to

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1 eligible retail customers in the planning year ending

2 immediately prior to the agreement's execution. For

3 purposes of this subsection (d), the amount paid per

4 kilowatthour means the total amount paid for electric

5 service expressed on a per kilowatthour basis. For purposes

6 of this subsection (d), the total amount paid for electric

7 service includes without limitation amounts paid for

8 supply, transmission, distribution, surcharges and add-on

9 taxes.

10 Notwithstanding the requirements of this subsection

11 (d), the total amount paid under sourcing agreements with

12 clean coal facilities pursuant to the procurement plan for

13 any given year shall be reduced by an amount necessary to

14 limit the annual estimated average net increase due to the

15 costs of these resources included in the amounts paid by

16 eligible retail customers in connection with electric

17 service to:

18 (A) in 2010, no more than 0.5% of the amount paid

19 per kilowatthour by those customers during the year

20 ending May 31, 2009;

21 (B) in 2011, the greater of an additional 0.5% of

22 the amount paid per kilowatthour by those customers

23 during the year ending May 31, 2010 or 1% of the amount

24 paid per kilowatthour by those customers during the

25 year ending May 31, 2009;

26 (C) in 2012, the greater of an additional 0.5% of

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1 the amount paid per kilowatthour by those customers

2 during the year ending May 31, 2011 or 1.5% of the

3 amount paid per kilowatthour by those customers during

4 the year ending May 31, 2009;

5 (D) in 2013, the greater of an additional 0.5% of

6 the amount paid per kilowatthour by those customers

7 during the year ending May 31, 2012 or 2% of the amount

8 paid per kilowatthour by those customers during the

9 year ending May 31, 2009; and

10 (E) thereafter, the total amount paid under

11 sourcing agreements with clean coal facilities

12 pursuant to the procurement plan for any single year

13 shall be reduced by an amount necessary to limit the

14 estimated average net increase due to the cost of these

15 resources included in the amounts paid by eligible

16 retail customers in connection with electric service

17 to no more than the greater of (i) 2.015% of the amount

18 paid per kilowatthour by those customers during the

19 year ending May 31, 2009 or (ii) the incremental amount

20 per kilowatthour paid for these resources in 2013.

21 These requirements may be altered only as provided by

22 statute.

23 No later than June 30, 2015, the Commission shall

24 review the limitation on the total amount paid under

25 sourcing agreements, if any, with clean coal facilities

26 pursuant to this subsection (d) and report to the General

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1 Assembly its findings as to whether that limitation unduly

2 constrains the amount of electricity generated by

3 cost-effective clean coal facilities that is covered by

4 sourcing agreements.

5 (3) Initial clean coal facility. In order to promote

6 development of clean coal facilities in Illinois, each

7 electric utility subject to this Section shall execute a

8 sourcing agreement to source electricity from a proposed

9 clean coal facility in Illinois (the "initial clean coal

10 facility") that will have a nameplate capacity of at least

11 500 MW when commercial operation commences, that has a

12 final Clean Air Act permit on June 1, 2009 (the effective

13 date of Public Act 95-1027), and that will meet the

14 definition of clean coal facility in Section 1-10 of this

15 Act when commercial operation commences. The sourcing

16 agreements with this initial clean coal facility shall be

17 subject to both approval of the initial clean coal facility

18 by the General Assembly and satisfaction of the

19 requirements of paragraph (4) of this subsection (d) and

20 shall be executed within 90 days after any such approval by

21 the General Assembly. The Agency and the Commission shall

22 have authority to inspect all books and records associated

23 with the initial clean coal facility during the term of

24 such a sourcing agreement. A utility's sourcing agreement

25 for electricity produced by the initial clean coal facility

26 shall include:

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1 (A) a formula contractual price (the "contract

2 price") approved pursuant to paragraph (4) of this

3 subsection (d), which shall:

4 (i) be determined using a cost of service

5 methodology employing either a level or deferred

6 capital recovery component, based on a capital

7 structure consisting of 45% equity and 55% debt,

8 and a return on equity as may be approved by the

9 Federal Energy Regulatory Commission, which in any

10 case may not exceed the lower of 11.5% or the rate

11 of return approved by the General Assembly

12 pursuant to paragraph (4) of this subsection (d);

13 and

14 (ii) provide that all miscellaneous net

15 revenue, including but not limited to net revenue

16 from the sale of emission allowances, if any,

17 substitute natural gas, if any, grants or other

18 support provided by the State of Illinois or the

19 United States Government, firm transmission

20 rights, if any, by-products produced by the

21 facility, energy or capacity derived from the

22 facility and not covered by a sourcing agreement

23 pursuant to paragraph (3) of this subsection (d) or

24 item (5) of subsection (d) of Section 16-115 of the

25 Public Utilities Act, whether generated from the

26 synthesis gas derived from coal, from SNG, or from

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1 natural gas, shall be credited against the revenue

2 requirement for this initial clean coal facility;

3 (B) power purchase provisions, which shall:

4 (i) provide that the utility party to such

5 sourcing agreement shall pay the contract price

6 for electricity delivered under such sourcing

7 agreement;

8 (ii) require delivery of electricity to the

9 regional transmission organization market of the

10 utility that is party to such sourcing agreement;

11 (iii) require the utility party to such

12 sourcing agreement to buy from the initial clean

13 coal facility in each hour an amount of energy

14 equal to all clean coal energy made available from

15 the initial clean coal facility during such hour

16 times a fraction, the numerator of which is such

17 utility's retail market sales of electricity

18 (expressed in kilowatthours sold) in the State

19 during the prior calendar month and the

20 denominator of which is the total retail market

21 sales of electricity (expressed in kilowatthours

22 sold) in the State by utilities during such prior

23 month and the sales of electricity (expressed in

24 kilowatthours sold) in the State by alternative

25 retail electric suppliers during such prior month

26 that are subject to the requirements of this

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1 subsection (d) and paragraph (5) of subsection (d)

2 of Section 16-115 of the Public Utilities Act,

3 provided that the amount purchased by the utility

4 in any year will be limited by paragraph (2) of

5 this subsection (d); and

6 (iv) be considered pre-existing contracts in

7 such utility's procurement plans for eligible

8 retail customers;

9 (C) contract for differences provisions, which

10 shall:

11 (i) require the utility party to such sourcing

12 agreement to contract with the initial clean coal

13 facility in each hour with respect to an amount of

14 energy equal to all clean coal energy made

15 available from the initial clean coal facility

16 during such hour times a fraction, the numerator of

17 which is such utility's retail market sales of

18 electricity (expressed in kilowatthours sold) in

19 the utility's service territory in the State

20 during the prior calendar month and the

21 denominator of which is the total retail market

22 sales of electricity (expressed in kilowatthours

23 sold) in the State by utilities during such prior

24 month and the sales of electricity (expressed in

25 kilowatthours sold) in the State by alternative

26 retail electric suppliers during such prior month

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1 that are subject to the requirements of this

2 subsection (d) and paragraph (5) of subsection (d)

3 of Section 16-115 of the Public Utilities Act,

4 provided that the amount paid by the utility in any

5 year will be limited by paragraph (2) of this

6 subsection (d);

7 (ii) provide that the utility's payment

8 obligation in respect of the quantity of

9 electricity determined pursuant to the preceding

10 clause (i) shall be limited to an amount equal to

11 (1) the difference between the contract price

12 determined pursuant to subparagraph (A) of

13 paragraph (3) of this subsection (d) and the

14 day-ahead price for electricity delivered to the

15 regional transmission organization market of the

16 utility that is party to such sourcing agreement

17 (or any successor delivery point at which such

18 utility's supply obligations are financially

19 settled on an hourly basis) (the "reference

20 price") on the day preceding the day on which the

21 electricity is delivered to the initial clean coal

22 facility busbar, multiplied by (2) the quantity of

23 electricity determined pursuant to the preceding

24 clause (i); and

25 (iii) not require the utility to take physical

26 delivery of the electricity produced by the

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1 facility;

2 (D) general provisions, which shall:

3 (i) specify a term of no more than 30 years,

4 commencing on the commercial operation date of the

5 facility;

6 (ii) provide that utilities shall maintain

7 adequate records documenting purchases under the

8 sourcing agreements entered into to comply with

9 this subsection (d) and shall file an accounting

10 with the load forecast that must be filed with the

11 Agency by July 15 of each year, in accordance with

12 subsection (d) of Section 16-111.5 of the Public

13 Utilities Act;

14 (iii) provide that all costs associated with

15 the initial clean coal facility will be

16 periodically reported to the Federal Energy

17 Regulatory Commission and to purchasers in

18 accordance with applicable laws governing

19 cost-based wholesale power contracts;

20 (iv) permit the Illinois Power Agency to

21 assume ownership of the initial clean coal

22 facility, without monetary consideration and

23 otherwise on reasonable terms acceptable to the

24 Agency, if the Agency so requests no less than 3

25 years prior to the end of the stated contract term;

26 (v) require the owner of the initial clean coal

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1 facility to provide documentation to the

2 Commission each year, starting in the facility's

3 first year of commercial operation, accurately

4 reporting the quantity of carbon emissions from

5 the facility that have been captured and

6 sequestered and report any quantities of carbon

7 released from the site or sites at which carbon

8 emissions were sequestered in prior years, based

9 on continuous monitoring of such sites. If, in any

10 year after the first year of commercial operation,

11 the owner of the facility fails to demonstrate that

12 the initial clean coal facility captured and

13 sequestered at least 50% of the total carbon

14 emissions that the facility would otherwise emit

15 or that sequestration of emissions from prior

16 years has failed, resulting in the release of

17 carbon dioxide into the atmosphere, the owner of

18 the facility must offset excess emissions. Any

19 such carbon offsets must be permanent, additional,

20 verifiable, real, located within the State of

21 Illinois, and legally and practicably enforceable.

22 The cost of such offsets for the facility that are

23 not recoverable shall not exceed $15 million in any

24 given year. No costs of any such purchases of

25 carbon offsets may be recovered from a utility or

26 its customers. All carbon offsets purchased for

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1 this purpose and any carbon emission credits

2 associated with sequestration of carbon from the

3 facility must be permanently retired. The initial

4 clean coal facility shall not forfeit its

5 designation as a clean coal facility if the

6 facility fails to fully comply with the applicable

7 carbon sequestration requirements in any given

8 year, provided the requisite offsets are

9 purchased. However, the Attorney General, on

10 behalf of the People of the State of Illinois, may

11 specifically enforce the facility's sequestration

12 requirement and the other terms of this contract

13 provision. Compliance with the sequestration

14 requirements and offset purchase requirements

15 specified in paragraph (3) of this subsection (d)

16 shall be reviewed annually by an independent

17 expert retained by the owner of the initial clean

18 coal facility, with the advance written approval

19 of the Attorney General. The Commission may, in the

20 course of the review specified in item (vii),

21 reduce the allowable return on equity for the

22 facility if the facility willfully fails to comply

23 with the carbon capture and sequestration

24 requirements set forth in this item (v);

25 (vi) include limits on, and accordingly

26 provide for modification of, the amount the

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1 utility is required to source under the sourcing

2 agreement consistent with paragraph (2) of this

3 subsection (d);

4 (vii) require Commission review: (1) to

5 determine the justness, reasonableness, and

6 prudence of the inputs to the formula referenced in

7 subparagraphs (A)(i) through (A)(iii) of paragraph

8 (3) of this subsection (d), prior to an adjustment

9 in those inputs including, without limitation, the

10 capital structure and return on equity, fuel

11 costs, and other operations and maintenance costs

12 and (2) to approve the costs to be passed through

13 to customers under the sourcing agreement by which

14 the utility satisfies its statutory obligations.

15 Commission review shall occur no less than every 3

16 years, regardless of whether any adjustments have

17 been proposed, and shall be completed within 9

18 months;

19 (viii) limit the utility's obligation to such

20 amount as the utility is allowed to recover through

21 tariffs filed with the Commission, provided that

22 neither the clean coal facility nor the utility

23 waives any right to assert federal pre-emption or

24 any other argument in response to a purported

25 disallowance of recovery costs;

26 (ix) limit the utility's or alternative retail

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1 electric supplier's obligation to incur any

2 liability until such time as the facility is in

3 commercial operation and generating power and

4 energy and such power and energy is being delivered

5 to the facility busbar;

6 (x) provide that the owner or owners of the

7 initial clean coal facility, which is the

8 counterparty to such sourcing agreement, shall

9 have the right from time to time to elect whether

10 the obligations of the utility party thereto shall

11 be governed by the power purchase provisions or the

12 contract for differences provisions;

13 (xi) append documentation showing that the

14 formula rate and contract, insofar as they relate

15 to the power purchase provisions, have been

16 approved by the Federal Energy Regulatory

17 Commission pursuant to Section 205 of the Federal

18 Power Act;

19 (xii) provide that any changes to the terms of

20 the contract, insofar as such changes relate to the

21 power purchase provisions, are subject to review

22 under the public interest standard applied by the

23 Federal Energy Regulatory Commission pursuant to

24 Sections 205 and 206 of the Federal Power Act; and

25 (xiii) conform with customary lender

26 requirements in power purchase agreements used as

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1 the basis for financing non-utility generators.

2 (4) Effective date of sourcing agreements with the

3 initial clean coal facility. Any proposed sourcing

4 agreement with the initial clean coal facility shall not

5 become effective unless the following reports are prepared

6 and submitted and authorizations and approvals obtained:

7 (i) Facility cost report. The owner of the initial

8 clean coal facility shall submit to the Commission, the

9 Agency, and the General Assembly a front-end

10 engineering and design study, a facility cost report,

11 method of financing (including but not limited to

12 structure and associated costs), and an operating and

13 maintenance cost quote for the facility (collectively

14 "facility cost report"), which shall be prepared in

15 accordance with the requirements of this paragraph (4)

16 of subsection (d) of this Section, and shall provide

17 the Commission and the Agency access to the work

18 papers, relied upon documents, and any other backup

19 documentation related to the facility cost report.

20 (ii) Commission report. Within 6 months following

21 receipt of the facility cost report, the Commission, in

22 consultation with the Agency, shall submit a report to

23 the General Assembly setting forth its analysis of the

24 facility cost report. Such report shall include, but

25 not be limited to, a comparison of the costs associated

26 with electricity generated by the initial clean coal

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1 facility to the costs associated with electricity

2 generated by other types of generation facilities, an

3 analysis of the rate impacts on residential and small

4 business customers over the life of the sourcing

5 agreements, and an analysis of the likelihood that the

6 initial clean coal facility will commence commercial

7 operation by and be delivering power to the facility's

8 busbar by 2016. To assist in the preparation of its

9 report, the Commission, in consultation with the

10 Agency, may hire one or more experts or consultants,

11 the costs of which shall be paid for by the owner of

12 the initial clean coal facility. The Commission and

13 Agency may begin the process of selecting such experts

14 or consultants prior to receipt of the facility cost

15 report.

16 (iii) General Assembly approval. The proposed

17 sourcing agreements shall not take effect unless,

18 based on the facility cost report and the Commission's

19 report, the General Assembly enacts authorizing

20 legislation approving (A) the projected price, stated

21 in cents per kilowatthour, to be charged for

22 electricity generated by the initial clean coal

23 facility, (B) the projected impact on residential and

24 small business customers' bills over the life of the

25 sourcing agreements, and (C) the maximum allowable

26 return on equity for the project; and

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1 (iv) Commission review. If the General Assembly

2 enacts authorizing legislation pursuant to

3 subparagraph (iii) approving a sourcing agreement, the

4 Commission shall, within 90 days of such enactment,

5 complete a review of such sourcing agreement. During

6 such time period, the Commission shall implement any

7 directive of the General Assembly, resolve any

8 disputes between the parties to the sourcing agreement

9 concerning the terms of such agreement, approve the

10 form of such agreement, and issue an order finding that

11 the sourcing agreement is prudent and reasonable.

12 The facility cost report shall be prepared as follows:

13 (A) The facility cost report shall be prepared by

14 duly licensed engineering and construction firms

15 detailing the estimated capital costs payable to one or

16 more contractors or suppliers for the engineering,

17 procurement and construction of the components

18 comprising the initial clean coal facility and the

19 estimated costs of operation and maintenance of the

20 facility. The facility cost report shall include:

21 (i) an estimate of the capital cost of the core

22 plant based on one or more front end engineering

23 and design studies for the gasification island and

24 related facilities. The core plant shall include

25 all civil, structural, mechanical, electrical,

26 control, and safety systems.

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1 (ii) an estimate of the capital cost of the

2 balance of the plant, including any capital costs

3 associated with sequestration of carbon dioxide

4 emissions and all interconnects and interfaces

5 required to operate the facility, such as

6 transmission of electricity, construction or

7 backfeed power supply, pipelines to transport

8 substitute natural gas or carbon dioxide, potable

9 water supply, natural gas supply, water supply,

10 water discharge, landfill, access roads, and coal

11 delivery.

12 The quoted construction costs shall be expressed

13 in nominal dollars as of the date that the quote is

14 prepared and shall include capitalized financing costs

15 during construction, taxes, insurance, and other

16 owner's costs, and an assumed escalation in materials

17 and labor beyond the date as of which the construction

18 cost quote is expressed.

19 (B) The front end engineering and design study for

20 the gasification island and the cost study for the

21 balance of plant shall include sufficient design work

22 to permit quantification of major categories of

23 materials, commodities and labor hours, and receipt of

24 quotes from vendors of major equipment required to

25 construct and operate the clean coal facility.

26 (C) The facility cost report shall also include an

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1 operating and maintenance cost quote that will provide

2 the estimated cost of delivered fuel, personnel,

3 maintenance contracts, chemicals, catalysts,

4 consumables, spares, and other fixed and variable

5 operations and maintenance costs. The delivered fuel

6 cost estimate will be provided by a recognized third

7 party expert or experts in the fuel and transportation

8 industries. The balance of the operating and

9 maintenance cost quote, excluding delivered fuel

10 costs, will be developed based on the inputs provided

11 by duly licensed engineering and construction firms

12 performing the construction cost quote, potential

13 vendors under long-term service agreements and plant

14 operating agreements, or recognized third party plant

15 operator or operators.

16 The operating and maintenance cost quote

17 (including the cost of the front end engineering and

18 design study) shall be expressed in nominal dollars as

19 of the date that the quote is prepared and shall

20 include taxes, insurance, and other owner's costs, and

21 an assumed escalation in materials and labor beyond the

22 date as of which the operating and maintenance cost

23 quote is expressed.

24 (D) The facility cost report shall also include an

25 analysis of the initial clean coal facility's ability

26 to deliver power and energy into the applicable

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1 regional transmission organization markets and an

2 analysis of the expected capacity factor for the

3 initial clean coal facility.

4 (E) Amounts paid to third parties unrelated to the

5 owner or owners of the initial clean coal facility to

6 prepare the core plant construction cost quote,

7 including the front end engineering and design study,

8 and the operating and maintenance cost quote will be

9 reimbursed through Coal Development Bonds.

10 (5) Re-powering and retrofitting coal-fired power

11 plants previously owned by Illinois utilities to qualify as

12 clean coal facilities. During the 2009 procurement

13 planning process and thereafter, the Agency and the

14 Commission shall consider sourcing agreements covering

15 electricity generated by power plants that were previously

16 owned by Illinois utilities and that have been or will be

17 converted into clean coal facilities, as defined by Section

18 1-10 of this Act. Pursuant to such procurement planning

19 process, the owners of such facilities may propose to the

20 Agency sourcing agreements with utilities and alternative

21 retail electric suppliers required to comply with

22 subsection (d) of this Section and item (5) of subsection

23 (d) of Section 16-115 of the Public Utilities Act, covering

24 electricity generated by such facilities. In the case of

25 sourcing agreements that are power purchase agreements,

26 the contract price for electricity sales shall be

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1 established on a cost of service basis. In the case of

2 sourcing agreements that are contracts for differences,

3 the contract price from which the reference price is

4 subtracted shall be established on a cost of service basis.

5 The Agency and the Commission may approve any such utility

6 sourcing agreements that do not exceed cost-based

7 benchmarks developed by the procurement administrator, in

8 consultation with the Commission staff, Agency staff and

9 the procurement monitor, subject to Commission review and

10 approval. The Commission shall have authority to inspect

11 all books and records associated with these clean coal

12 facilities during the term of any such contract.

13 (6) Costs incurred under this subsection (d) or

14 pursuant to a contract entered into under this subsection

15 (d) shall be deemed prudently incurred and reasonable in

16 amount and the electric utility shall be entitled to full

17 cost recovery pursuant to the tariffs filed with the

18 Commission.

19 (d-5) Zero emission standard.

20 (1) Beginning with the delivery year commencing on June

21 1, 2017, the Agency shall, for electric utilities that

22 serve at least 100,000 retail customers in this State,

23 procure contracts with zero emission facilities that are

24 reasonably capable of generating cost-effective zero

25 emission credits in an amount approximately equal to 16% of

26 the actual amount of electricity delivered by each electric

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1 utility to retail customers in the State during calendar

2 year 2014. For an electric utility serving fewer than

3 100,000 retail customers in this State that requested,

4 under Section 16-111.5 of the Public Utilities Act, that

5 the Agency procure power and energy for all or a portion of

6 the utility's Illinois load for the delivery year

7 commencing June 1, 2016, the Agency shall procure contracts

8 with zero emission facilities that are reasonably capable

9 of generating cost-effective zero emission credits in an

10 amount approximately equal to 16% of the portion of power

11 and energy to be procured by the Agency for the utility.

12 The duration of the contracts procured under this

13 subsection (d-5) shall be for a term of 10 years ending May

14 31, 2027. The quantity of zero emission credits to be

15 procured under the contracts shall be all of the zero

16 emission credits generated by the zero emission facility in

17 each delivery year; however, if the zero emission facility

18 is owned by more than one entity, then the quantity of zero

19 emission credits to be procured under the contracts shall

20 be the amount of zero emission credits that are generated

21 from the portion of the zero emission facility that is

22 owned by the winning supplier.

23 The 16% value identified in this paragraph (1) is the

24 average of the percentage targets in subparagraph (B) of

25 paragraph (1) of subsection (c) of this Section ~~1-75 of~~

26 ~~this Act~~ for the 5 delivery years beginning June 1, 2017.

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1 The procurement process shall be subject to the

2 following provisions:

3 (A) Those zero emission facilities that intend to

4 participate in the procurement shall submit to the

5 Agency the following eligibility information for each

6 zero emission facility on or before the date

7 established by the Agency:

8 (i) the in-service date and remaining useful

9 life of the zero emission facility;

10 (ii) the amount of power generated annually

11 for each of the years 2005 through 2015, and the

12 projected zero emission credits to be generated

13 over the remaining useful life of the zero emission

14 facility, which shall be used to determine the

15 capability of each facility;

16 (iii) the annual zero emission facility cost

17 projections, expressed on a per megawatthour

18 basis, over the next 6 delivery years, which shall

19 include the following: operation and maintenance

20 expenses; fully allocated overhead costs, which

21 shall be allocated using the methodology developed

22 by the Institute for Nuclear Power Operations;

23 fuel expenditures; non-fuel capital expenditures;

24 spent fuel expenditures; a return on working

25 capital; the cost of operational and market risks

26 that could be avoided by ceasing operation; and any

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1 other costs necessary for continued operations,

2 provided that "necessary" means, for purposes of

3 this item (iii), that the costs could reasonably be

4 avoided only by ceasing operations of the zero

5 emission facility; and

6 (iv) a commitment to continue operating, for

7 the duration of the contract or contracts executed

8 under the procurement held under this subsection

9 (d-5), the zero emission facility that produces

10 the zero emission credits to be procured in the

11 procurement.

12 The information described in item (iii) of this

13 subparagraph (A) may be submitted on a confidential

14 basis and shall be treated and maintained by the

15 Agency, the procurement administrator, and the

16 Commission as confidential and proprietary and exempt

17 from disclosure under subparagraphs (a) and (g) of

18 paragraph (1) of Section 7 of the Freedom of

19 Information Act. The Office of Attorney General shall

20 have access to, and maintain the confidentiality of,

21 such information pursuant to Section 6.5 of the

22 Attorney General Act.

23 (B) The price for each zero emission credit

24 procured under this subsection (d-5) for each delivery

25 year shall be in an amount that equals the Social Cost

26 of Carbon, expressed on a price per megawatthour basis.

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1 However, to ensure that the procurement remains

2 affordable to retail customers in this State if

3 electricity prices increase, the price in an

4 applicable delivery year shall be reduced below the

5 Social Cost of Carbon by the amount ("Price

6 Adjustment") by which the market price index for the

7 applicable delivery year exceeds the baseline market

8 price index for the consecutive 12-month period ending

9 May 31, 2016. If the Price Adjustment is greater than

10 or equal to the Social Cost of Carbon in an applicable

11 delivery year, then no payments shall be due in that

12 delivery year. The components of this calculation are

13 defined as follows:

14 (i) Social Cost of Carbon: The Social Cost of

15 Carbon is $16.50 per megawatthour, which is based

16 on the U.S. Interagency Working Group on Social

17 Cost of Carbon's price in the August 2016 Technical

18 Update using a 3% discount rate, adjusted for

19 inflation for each year of the program. Beginning

20 with the delivery year commencing June 1, 2023, the

21 price per megawatthour shall increase by $1 per

22 megawatthour, and continue to increase by an

23 additional $1 per megawatthour each delivery year

24 thereafter.

25 (ii) Baseline market price index: The baseline

26 market price index for the consecutive 12-month

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1 period ending May 31, 2016 is $31.40 per

2 megawatthour, which is based on the sum of (aa) the

3 average day-ahead energy price across all hours of

4 such 12-month period at the PJM Interconnection

5 LLC Northern Illinois Hub, (bb) 50% multiplied by

6 the Base Residual Auction, or its successor,

7 capacity price for the rest of the RTO zone group

8 determined by PJM Interconnection LLC, divided by

9 24 hours per day, and (cc) 50% multiplied by the

10 Planning Resource Auction, or its successor,

11 capacity price for Zone 4 determined by the

12 Midcontinent Independent System Operator, Inc.,

13 divided by 24 hours per day.

14 (iii) Market price index: The market price

15 index for a delivery year shall be the sum of

16 projected energy prices and projected capacity

17 prices determined as follows:

18 (aa) Projected energy prices: the

19 projected energy prices for the applicable

20 delivery year shall be calculated once for the

21 year using the forward market price for the PJM

22 Interconnection, LLC Northern Illinois Hub.

23 The forward market price shall be calculated as

24 follows: the energy forward prices for each

25 month of the applicable delivery year averaged

26 for each trade date during the calendar year

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1 immediately preceding that delivery year to

2 produce a single energy forward price for the

3 delivery year. The forward market price

4 calculation shall use data published by the

5 Intercontinental Exchange, or its successor.

6 (bb) Projected capacity prices:

7 (I) For the delivery years commencing

8 June 1, 2017, June 1, 2018, and June 1,

9 2019, the projected capacity price shall

10 be equal to the sum of (1) 50% multiplied

11 by the Base Residual Auction, or its

12 successor, price for the rest of the RTO

13 zone group as determined by PJM

14 Interconnection LLC, divided by 24 hours

15 per day and, (2) 50% multiplied by the

16 resource auction price determined in the

17 resource auction administered by the

18 Midcontinent Independent System Operator,

19 Inc., in which the largest percentage of

20 load cleared for Local Resource Zone 4,

21 divided by 24 hours per day, and where such

22 price is determined by the Midcontinent

23 Independent System Operator, Inc.

24 (II) For the delivery year commencing

25 June 1, 2020, and each year thereafter, the

26 projected capacity price shall be equal to

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1 the sum of (1) 50% multiplied by the Base

2 Residual Auction, or its successor, price

3 for the ComEd zone as determined by PJM

4 Interconnection LLC, divided by 24 hours

5 per day, and (2) 50% multiplied by the

6 resource auction price determined in the

7 resource auction administered by the

8 Midcontinent Independent System Operator,

9 Inc., in which the largest percentage of

10 load cleared for Local Resource Zone 4,

11 divided by 24 hours per day, and where such

12 price is determined by the Midcontinent

13 Independent System Operator, Inc.

14 For purposes of this subsection (d-5):

15 "Rest of the RTO" and "ComEd Zone" shall have

16 the meaning ascribed to them by PJM

17 Interconnection, LLC.

18 "RTO" means regional transmission

19 organization.

20 (C) No later than 45 days after June 1, 2017 (the

21 effective date of Public Act 99-906), the Agency shall

22 publish its proposed zero emission standard

23 procurement plan. The plan shall be consistent with the

24 provisions of this paragraph (1) and shall provide that

25 winning bids shall be selected based on public interest

26 criteria that include, but are not limited to,

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1 minimizing carbon dioxide emissions that result from

2 electricity consumed in Illinois and minimizing sulfur

3 dioxide, nitrogen oxide, and particulate matter

4 emissions that adversely affect the citizens of this

5 State. In particular, the selection of winning bids

6 shall take into account the incremental environmental

7 benefits resulting from the procurement, such as any

8 existing environmental benefits that are preserved by

9 the procurements held under Public Act 99-906 and would

10 cease to exist if the procurements were not held,

11 including the preservation of zero emission

12 facilities. The plan shall also describe in detail how

13 each public interest factor shall be considered and

14 weighted in the bid selection process to ensure that

15 the public interest criteria are applied to the

16 procurement and given full effect.

17 For purposes of developing the plan, the Agency

18 shall consider any reports issued by a State agency,

19 board, or commission under House Resolution 1146 of the

20 98th General Assembly and paragraph (4) of subsection

21 (d) of this Section ~~1-75 of this Act~~, as well as

22 publicly available analyses and studies performed by

23 or for regional transmission organizations that serve

24 the State and their independent market monitors.

25 Upon publishing of the zero emission standard

26 procurement plan, copies of the plan shall be posted

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1 and made publicly available on the Agency's website.

2 All interested parties shall have 10 days following the

3 date of posting to provide comment to the Agency on the

4 plan. All comments shall be posted to the Agency's

5 website. Following the end of the comment period, but

6 no more than 60 days later than June 1, 2017 (the

7 effective date of Public Act 99-906), the Agency shall

8 revise the plan as necessary based on the comments

9 received and file its zero emission standard

10 procurement plan with the Commission.

11 If the Commission determines that the plan will

12 result in the procurement of cost-effective zero

13 emission credits, then the Commission shall, after

14 notice and hearing, but no later than 45 days after the

15 Agency filed the plan, approve the plan or approve with

16 modification. For purposes of this subsection (d-5),

17 "cost effective" means the projected costs of

18 procuring zero emission credits from zero emission

19 facilities do not cause the limit stated in paragraph

20 (2) of this subsection to be exceeded.

21 (C-5) As part of the Commission's review and

22 acceptance or rejection of the procurement results,

23 the Commission shall, in its public notice of

24 successful bidders:

25 (i) identify how the winning bids satisfy the

26 public interest criteria described in subparagraph

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1 (C) of this paragraph (1) of minimizing carbon

2 dioxide emissions that result from electricity

3 consumed in Illinois and minimizing sulfur

4 dioxide, nitrogen oxide, and particulate matter

5 emissions that adversely affect the citizens of

6 this State;

7 (ii) specifically address how the selection of

8 winning bids takes into account the incremental

9 environmental benefits resulting from the

10 procurement, including any existing environmental

11 benefits that are preserved by the procurements

12 held under Public Act 99-906 and would have ceased

13 to exist if the procurements had not been held,

14 such as the preservation of zero emission

15 facilities;

16 (iii) quantify the environmental benefit of

17 preserving the resources identified in item (ii)

18 of this subparagraph (C-5), including the

19 following:

20 (aa) the value of avoided greenhouse gas

21 emissions measured as the product of the zero

22 emission facilities' output over the contract

23 term multiplied by the U.S. Environmental

24 Protection Agency eGrid subregion carbon

25 dioxide emission rate and the U.S. Interagency

26 Working Group on Social Cost of Carbon's price

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1 in the August 2016 Technical Update using a 3%

2 discount rate, adjusted for inflation for each

3 delivery year; and

4 (bb) the costs of replacement with other

5 zero carbon dioxide resources, including wind

6 and photovoltaic, based upon the simple

7 average of the following:

8 (I) the price, or if there is more than

9 one price, the average of the prices, paid

10 for renewable energy credits from new

11 utility-scale wind projects in the

12 procurement events specified in item (i)

13 of subparagraph (G) of paragraph (1) of

14 subsection (c) of this Section ~~1-75 of this~~

15 ~~Act~~; and

16 (II) the price, or if there is more

17 than one price, the average of the prices,

18 paid for renewable energy credits from new

19 utility-scale solar projects and

20 brownfield site photovoltaic projects in

21 the procurement events specified in item

22 (ii) of subparagraph (G) of paragraph (1)

23 of subsection (c) of this Section ~~1-75 of~~

24 ~~this Act~~ and, after January 1, 2015,

25 renewable energy credits from photovoltaic

26 distributed generation projects in

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1 procurement events held under subsection

2 (c) of this Section ~~1-75 of this Act~~.

3 Each utility shall enter into binding contractual

4 arrangements with the winning suppliers.

5 The procurement described in this subsection

6 (d-5), including, but not limited to, the execution of

7 all contracts procured, shall be completed no later

8 than May 10, 2017. Based on the effective date of

9 Public Act 99-906, the Agency and Commission may, as

10 appropriate, modify the various dates and timelines

11 under this subparagraph and subparagraphs (C) and (D)

12 of this paragraph (1). The procurement and plan

13 approval processes required by this subsection (d-5)

14 shall be conducted in conjunction with the procurement

15 and plan approval processes required by subsection (c)

16 of this Section and Section 16-111.5 of the Public

17 Utilities Act, to the extent practicable.

18 Notwithstanding whether a procurement event is

19 conducted under Section 16-111.5 of the Public

20 Utilities Act, the Agency shall immediately initiate a

21 procurement process on June 1, 2017 (the effective date

22 of Public Act 99-906).

23 (D) Following the procurement event described in

24 this paragraph (1) and consistent with subparagraph

25 (B) of this paragraph (1), the Agency shall calculate

26 the payments to be made under each contract for the

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1 next delivery year based on the market price index for

2 that delivery year. The Agency shall publish the

3 payment calculations no later than May 25, 2017 and

4 every May 25 thereafter.

5 (E) Notwithstanding the requirements of this

6 subsection (d-5), the contracts executed under this

7 subsection (d-5) shall provide that the zero emission

8 facility may, as applicable, suspend or terminate

9 performance under the contracts in the following

10 instances:

11 (i) A zero emission facility shall be excused

12 from its performance under the contract for any

13 cause beyond the control of the resource,

14 including, but not restricted to, acts of God,

15 flood, drought, earthquake, storm, fire,

16 lightning, epidemic, war, riot, civil disturbance

17 or disobedience, labor dispute, labor or material

18 shortage, sabotage, acts of public enemy,

19 explosions, orders, regulations or restrictions

20 imposed by governmental, military, or lawfully

21 established civilian authorities, which, in any of

22 the foregoing cases, by exercise of commercially

23 reasonable efforts the zero emission facility

24 could not reasonably have been expected to avoid,

25 and which, by the exercise of commercially

26 reasonable efforts, it has been unable to

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1 overcome. In such event, the zero emission

2 facility shall be excused from performance for the

3 duration of the event, including, but not limited

4 to, delivery of zero emission credits, and no

5 payment shall be due to the zero emission facility

6 during the duration of the event.

7 (ii) A zero emission facility shall be

8 permitted to terminate the contract if legislation

9 is enacted into law by the General Assembly that

10 imposes or authorizes a new tax, special

11 assessment, or fee on the generation of

12 electricity, the ownership or leasehold of a

13 generating unit, or the privilege or occupation of

14 such generation, ownership, or leasehold of

15 generation units by a zero emission facility.

16 However, the provisions of this item (ii) do not

17 apply to any generally applicable tax, special

18 assessment or fee, or requirements imposed by

19 federal law.

20 (iii) A zero emission facility shall be

21 permitted to terminate the contract in the event

22 that the resource requires capital expenditures in

23 excess of $40,000,000 that were neither known nor

24 reasonably foreseeable at the time it executed the

25 contract and that a prudent owner or operator of

26 such resource would not undertake.

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1 (iv) A zero emission facility shall be

2 permitted to terminate the contract in the event

3 the Nuclear Regulatory Commission terminates the

4 resource's license.

5 (F) If the zero emission facility elects to

6 terminate a contract under ~~this~~ subparagraph (E) ~~,~~ of

7 this paragraph (1), then the Commission shall reopen

8 the docket in which the Commission approved the zero

9 emission standard procurement plan under subparagraph

10 (C) of this paragraph (1) and, after notice and

11 hearing, enter an order acknowledging the contract

12 termination election if such termination is consistent

13 with the provisions of this subsection (d-5).

14 (2) For purposes of this subsection (d-5), the amount

15 paid per kilowatthour means the total amount paid for

16 electric service expressed on a per kilowatthour basis. For

17 purposes of this subsection (d-5), the total amount paid

18 for electric service includes, without limitation, amounts

19 paid for supply, transmission, distribution, surcharges,

20 and add-on taxes.

21 Notwithstanding the requirements of this subsection

22 (d-5), the contracts executed under this subsection (d-5)

23 shall provide that the total of zero emission credits

24 procured under a procurement plan shall be subject to the

25 limitations of this paragraph (2). For each delivery year,

26 the contractual volume receiving payments in such year

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1 shall be reduced for all retail customers based on the

2 amount necessary to limit the net increase that delivery

3 year to the costs of those credits included in the amounts

4 paid by eligible retail customers in connection with

5 electric service to no more than 1.65% of the amount paid

6 per kilowatthour by eligible retail customers during the

7 year ending May 31, 2009. The result of this computation

8 shall apply to and reduce the procurement for all retail

9 customers, and all those customers shall pay the same

10 single, uniform cents per kilowatthour charge under

11 subsection (k) of Section 16-108 of the Public Utilities

12 Act. To arrive at a maximum dollar amount of zero emission

13 credits to be paid for the particular delivery year, the

14 resulting per kilowatthour amount shall be applied to the

15 actual amount of kilowatthours of electricity delivered by

16 the electric utility in the delivery year immediately prior

17 to the procurement, to all retail customers in its service

18 territory. Unpaid contractual volume for any delivery year

19 shall be paid in any subsequent delivery year in which such

20 payments can be made without exceeding the amount specified

21 in this paragraph (2). The calculations required by this

22 paragraph (2) shall be made only once for each procurement

23 plan year. Once the determination as to the amount of zero

24 emission credits to be paid is made based on the

25 calculations set forth in this paragraph (2), no subsequent

26 rate impact determinations shall be made and no adjustments

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1 to those contract amounts shall be allowed. All costs

2 incurred under those contracts and in implementing this

3 subsection (d-5) shall be recovered by the electric utility

4 as provided in this Section.

5 No later than June 30, 2019, the Commission shall

6 review the limitation on the amount of zero emission

7 credits procured under this subsection (d-5) and report to

8 the General Assembly its findings as to whether that

9 limitation unduly constrains the procurement of

10 cost-effective zero emission credits.

11 (3) Six years after the execution of a contract under

12 this subsection (d-5), the Agency shall determine whether

13 the actual zero emission credit payments received by the

14 supplier over the 6-year period exceed the Average ZEC

15 Payment. In addition, at the end of the term of a contract

16 executed under this subsection (d-5), or at the time, if

17 any, a zero emission facility's contract is terminated

18 under subparagraph (E) of paragraph (1) of this subsection

19 (d-5), then the Agency shall determine whether the actual

20 zero emission credit payments received by the supplier over

21 the term of the contract exceed the Average ZEC Payment,

22 after taking into account any amounts previously credited

23 back to the utility under this paragraph (3). If the Agency

24 determines that the actual zero emission credit payments

25 received by the supplier over the relevant period exceed

26 the Average ZEC Payment, then the supplier shall credit the

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1 difference back to the utility. The amount of the credit

2 shall be remitted to the applicable electric utility no

3 later than 120 days after the Agency's determination, which

4 the utility shall reflect as a credit on its retail

5 customer bills as soon as practicable; however, the credit

6 remitted to the utility shall not exceed the total amount

7 of payments received by the facility under its contract.

8 For purposes of this Section, the Average ZEC Payment

9 shall be calculated by multiplying the quantity of zero

10 emission credits delivered under the contract times the

11 average contract price. The average contract price shall be

12 determined by subtracting the amount calculated under

13 subparagraph (B) of this paragraph (3) from the amount

14 calculated under subparagraph (A) of this paragraph (3), as

15 follows:

16 (A) The average of the Social Cost of Carbon, as

17 defined in subparagraph (B) of paragraph (1) of this

18 subsection (d-5), during the term of the contract.

19 (B) The average of the market price indices, as

20 defined in subparagraph (B) of paragraph (1) of this

21 subsection (d-5), during the term of the contract,

22 minus the baseline market price index, as defined in

23 subparagraph (B) of paragraph (1) of this subsection

24 (d-5).

25 If the subtraction yields a negative number, then the

26 Average ZEC Payment shall be zero.

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1 (4) Cost-effective zero emission credits procured from

2 zero emission facilities shall satisfy the applicable

3 definitions set forth in Section 1-10 of this Act.

4 (5) The electric utility shall retire all zero emission

5 credits used to comply with the requirements of this

6 subsection (d-5).

7 (6) Electric utilities shall be entitled to recover all

8 of the costs associated with the procurement of zero

9 emission credits through an automatic adjustment clause

10 tariff in accordance with subsection (k) and (m) of Section

11 16-108 of the Public Utilities Act, and the contracts

12 executed under this subsection (d-5) shall provide that the

13 utilities' payment obligations under such contracts shall

14 be reduced if an adjustment is required under subsection

15 (m) of Section 16-108 of the Public Utilities Act.

16 (7) This subsection (d-5) shall become inoperative on

17 January 1, 2028.

18 (e) The draft procurement plans are subject to public

19 comment, as required by Section 16-111.5 of the Public

20 Utilities Act.

21 (f) The Agency shall submit the final procurement plan to

22 the Commission. The Agency shall revise a procurement plan if

23 the Commission determines that it does not meet the standards

24 set forth in Section 16-111.5 of the Public Utilities Act.

25 (g) The Agency shall assess fees to each affected utility

26 to recover the costs incurred in preparation of the annual

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1 procurement plan for the utility.

2 (h) The Agency shall assess fees to each bidder to recover

3 the costs incurred in connection with a competitive procurement

4 process.

5 (i) A renewable energy credit, carbon emission credit, or

6 zero emission credit can only be used once to comply with a

7 single portfolio or other standard as set forth in subsection

8 (c), subsection (d), or subsection (d-5) of this Section,

9 respectively. A renewable energy credit, carbon emission

10 credit, or zero emission credit cannot be used to satisfy the

11 requirements of more than one standard. If more than one type

12 of credit is issued for the same megawatt hour of energy, only

13 one credit can be used to satisfy the requirements of a single

14 standard. After such use, the credit must be retired together

15 with any other credits issued for the same megawatt hour of

16 energy.

17 (j) Bundled procurement.

18 (1) Beginning with the energy, capacity and renewable

19 energy credits to be delivered in the delivery year

20 commencing on June 1, 2021, the Agency shall procure

21 cost-effective, long-term bundled contracts for energy

22 supply, renewable energy credits from new renewable energy

23 projects as defined in subparagraph (P) of subsection (c)

24 of this Section, and, subject to the requirements of

25 subsection (k) of this Section, capacity, in accordance

26 with the requirements of Section 16-111.5 of the Public

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1 Utilities Act for the eligible retail customers of electric

2 utilities that on December 31, 2005 provided electric

3 service to at least 100,000 customers in Illinois. At a

4 minimum, energy supply procured by the Agency through new

5 long-term bundled contracts shall be:

6 (A) 3,000,000 megawatt-hours and associated

7 renewable energy credits and, subject to the

8 requirements of subsection (k) of this Section,

9 capacity from new wind and solar projects for the

10 delivery year beginning June 1, 2021.

11 (B) 6,000,000 megawatt-hours and associated

12 renewable energy credits and, subject to the

13 requirements of subsection (k) of this Section,

14 capacity from new wind and solar projects for the

15 delivery year beginning June 1, 2022.

16 (C) 9,000,000 megawatt-hours and associated

17 renewable energy credits and, subject to the

18 requirements of subsection (k) of this Section,

19 capacity from new wind and solar projects for the

20 delivery year beginning June 1, 2023.

21 (D) 12,000,000 megawatt-hours and associated

22 renewable energy credits and, subject to the

23 requirements of subsection (k) of this Section,

24 capacity from new wind and solar projects for the

25 delivery year beginning June 1, 2024.

26 (E) 15,000,000 megawatt-hours and associated

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1 renewable energy credits and, subject to the

2 requirements of subsection (k) of this Section,

3 capacity from new wind and solar projects for the

4 delivery year beginning June 1, 2025.

5 (F) 18,000,000 megawatt-hours and associated

6 renewable energy credits and, subject to the

7 requirements of subsection (k) of this Section,

8 capacity from new wind and solar projects for the

9 delivery year beginning June 1, 2026.

10 (G) 21,000,000 megawatt-hours and associated

11 renewable energy credits and, subject to the

12 requirements of subsection (k) of this Section,

13 capacity from new wind and solar projects for the

14 delivery year beginning June 1, 2027.

15 (H) 24,000,000 megawatt-hours and associated

16 renewable energy credits and, subject to the

17 requirements of subsection (k) of this Section,

18 capacity from new wind and solar projects for the

19 delivery year beginning June 1, 2028 and thereafter.

20 (2) Long-term bundled contracts as described in this

21 subsection shall refer to contracts that contain no less

22 than a 15-year period.

23 (3) Long-term bundled contracts shall only be awarded

24 for new renewable energy projects as defined in

25 subparagraphs (C) and (P) of subsection (c) of this

26 Section. Nothing in this Section is intended to preclude

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1 distributed generation from participating.

2 (4) Long-term bundled contracts as described in this

3 subsection may include procurements that include energy

4 supply plus renewable energy credits, procurements that

5 include capacity, subject to the requirements of

6 subsection (k) of this Section, plus renewable energy

7 credits, or procurements that include energy supply plus

8 capacity plus renewable energy credits.

9 (5) Long-term bundled contracts as described in this

10 subsection shall be procured in a procurement event prior

11 to the scheduled Reliability Pricing Model Auctions of the

12 PJM Interconnection LLC and the Planning Resource Actions

13 of the Midcontinent Independent System Operator.

14 (k) Carbon-free resources.

15 (1) Carbon-free capacity. Beginning with the

16 procurement for the delivery year commencing June 1, 2022,

17 if possible, but no later than for the delivery year

18 commencing June 1, 2023, the Agency shall develop a plan

19 and conduct a procurement of capacity from qualified

20 resources as part of its procurement plan described in

21 Section 16-111.5 of the Public Utilities Act with the goals

22 of reducing pollution from the power sector, lowering

23 consumer costs, and creating investment opportunities for

24 new renewable resources. For the purposes of this

25 subsection, "qualified resources" means (A) energy

26 efficiency measures that are implemented pursuant to plans

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1 approved by the Commission under Sections 8-103, 8-103B,

2 and 8-104 of the Public Utilities Act; (B) renewable energy

3 resources; (C) zero emission facilities; and (D) resources

4 as part of a clean peak program under subsection (l) of

5 this Section, subject to the requirements in the open

6 access tariff and manuals of PJM Interconnection and

7 approved by the Federal Energy Regulatory Commission. The

8 capacity portion of qualified resources shall be counted

9 toward fulfillment of capacity obligations within the

10 local delivery area of an electric utility serving more

11 than 3,000,000 retail customers that is a member of PJM

12 Interconnection LLC, as defined in the open access tariff

13 and manuals of PJM Interconnection and approved by the

14 Federal Energy Regulatory Commission, as applicable. The

15 Agency shall calculate the eligible capacity contribution

16 of qualified resources procured, and match it to an

17 equivalent megawatt quantity or portion of capacity

18 obligation of load within the local delivery zone. The

19 resulting capacity and load obligation shall be reported in

20 accordance with the applicable provisions of the Open

21 Access Transmission Tariff and manuals of PJM

22 Interconnection LLC.

23 (2) Carbon-free supply. Beginning with the delivery

24 year commencing June 1, 2021, the Agency shall ensure its

25 procurement of energy supply, in accordance with the

26 requirements of Section 16-111.5 of the Public Utilities

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1 Act for the eligible retail customers of electric utilities

2 that on December 31, 2005 provided electric service to at

3 least 100,000 customers in Illinois, achieves a

4 progressive annual ramp down to an emission rate of zero

5 pounds of carbon dioxide emissions per megawatt-hour by May

6 31, 2030. At a minimum, energy supply procured by the

7 Agency through new long-term bundled contracts shall be:

8 (A) 1,000 pounds per megawatt-hour of carbon

9 dioxide emissions per megawatt-hour for the delivery

10 year beginning June 1, 2021.

11 (B) 500 pounds per megawatt-hour of carbon dioxide

12 emissions per megawatt-hour for the delivery year

13 beginning June 1, 2026.

14 (C) zero pounds per megawatt-hour of carbon

15 dioxide emissions per megawatt-hour for the delivery

16 year beginning June 1, 2030 and thereafter.

17 (l) Clean Peak Program.

18 (1) In this subsection:

19 "Energy storage response threshold level" means a

20 level, in megawatts, for the designated locational

21 delivery area system-wide demand at which energy storage

22 resources must begin providing demand reduction at its

23 committed level. The energy storage response threshold

24 level shall be set by the Agency to coincide with the top

25 100 hours of demand in the designated zone, accounting for

26 seasonal variability in capacity needs and any capacity

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1 performance requirements included in the Open Access

2 Transmission Tariff and manuals of PJM Interconnection,

3 LLC.

4 "Demand response threshold level" means a level, in

5 megawatts, of the locational delivery area system-wide

6 demand at which demand response resources must begin

7 providing demand reduction at its committed demand

8 response threshold level. The demand response threshold

9 level shall be set by the Agency to coincide with the top

10 100 hours of demand in the designated zone, accounting for

11 seasonal variability in capacity needs and any capacity

12 performance requirements included in the Open Access

13 Transmission Tariff and manuals of PJM Interconnection

14 LLC.

15 (2) The Agency shall develop a Clean Peak Program plan

16 that shall include programs and competitive procurement

17 events necessary to meet the goals set forth in this

18 subsection (l). Within 90 days after the effective date of

19 this amendatory Act of the 101st General Assembly, the

20 Agency shall release for comment an initial Clean Peak

21 Program plan. The Clean Peak Program plan shall be subject

22 to review and approval by the Commission under Section

23 16-111.5 of the Public Utilities Act. The Agency shall

24 review and update on an annual basis a Clean Peak Program

25 plan which shall be reviewed and approved by the Commission

26 in conjunction with the procurement plan under Section

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1 16-111.5 of the Public Utilities Act to the extent

2 practicable to minimize administrative expense.

3 (3) The Clean Peak Program shall include progressive

4 annual goals and efforts to achieve a 15% reduction in the

5 Capacity and Network Service Peak Load Contributions in the

6 Commission zone, as determined by PJM Interconnection LLC

7 in its Open Access Transmission Tariff, by the beginning of

8 the delivery year commencing June 1, 2023, and each year

9 thereafter, based on the measured Capacity and Network

10 Service Peak Load Contribution of the designated zone for

11 the delivery year commencing June 1, 2017.

12 (4) The Clean Peak Program shall consist of the

13 following elements:

14 (A) Energy storage resources that commit to

15 achieve a reduction in electricity demand in the

16 designated zone, in megawatts based on seasonal

17 capability, when the electricity demand of the

18 designated zone reaches an energy storage response

19 threshold level, in megawatts.

20 (B) Energy storage resources, co-located with and

21 that are energized primarily from wind and solar

22 projects, that commit to achieve a reduction in

23 electricity demand in the designated zone, in

24 megawatts based on seasonal capability, when the

25 electricity demand of the designated zone reaches an

26 energy storage response threshold level, in megawatts.

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1 (C) Demand response resources, not including

2 generators powered by diesel fuel or natural gas, that

3 commit to achieve a reduction in electricity demand in

4 the designated zone, in megawatts based on seasonal

5 capability, when the electricity demand of the

6 designated zone reaches a demand response threshold

7 level, in megawatts.

8 (D) Utility-run demand-response programs,

9 price-responsive demand programs, time-of-use, and

10 hourly rate programs, beneficial electrification

11 programs as described in Section 16-107.8 of the Public

12 Utilities Act, any capacity value developed by the

13 Illinois Commerce Commission as part of the

14 distributed generation rebate described in Section

15 16-106.7 of the Public Utilities Act, or as otherwise

16 provided for by the Commission.

17 (E) Demand response and energy efficiency

18 resources as defined by the Open Access Transmission

19 Tariff and manuals of PJM Interconnection LLC.

20 (5) To the extent practical, the Agency shall procure

21 resources identified in subparagraphs (A) through (C) in

22 paragraph (4) as part of the Carbon-Free Capacity

23 Procurement described in paragraph (1) of subsection (k).

24 (6) The Agency shall calculate the eligible capacity

25 contribution of the items in paragraph (4) of this

26 subsection (l) as part of any resource-specific carve-out

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1 in the Open Access Transmission Tariff and manuals of PJM

2 Interconnection LLC.

3 (7) As part of its annual plan, the Agency shall

4 solicit comment on new ways and methods for achieving

5 cost-effective demand reductions to meet the goals of this

6 subsection and, upon review, include new program proposals

7 in its annual plan for review and approval by the

8 Commission.

9 (Source: P.A. 99-536, eff. 7-8-16; 99-906, eff. 6-1-17;

10 100-863, eff. 8-14-18; revised 10-18-18.)

11 Section 90-15. The School Code is amended by adding Section

12 2-3.176 as follows:

13 (105 ILCS 5/2-3.176 new)

14 Sec. 2-3.176. Clean jobs curriculum.

15 (a) The General Assembly recognizes that clean energy is a

16 growing and important sector of the State's economy and that

17 significant job opportunity exists in the sector. Consistent

18 with Section 5-30 of the Clean Jobs Workforce Hubs Act, the

19 Board shall participate in the development of the clean jobs

20 curriculum convened by the Department of Commerce and Economic

21 Opportunity. The Board shall identify and collaboratively with

22 stakeholders identified by the Board develop curriculum based

23 on anticipated clean energy job availability and growth. Clean

24 energy jobs considered shall include, but are not limited to,

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1 solar photovoltaic, solar thermal, wind energy, energy

2 efficiency, site assessment, sales, and back office.

3 (b) In the development of the clean jobs curriculum, the

4 Board shall consider broad occupational training applicable to

5 the general construction sector as well as sector-specific

6 skills.

7 (c) Consideration should be given to skills applicable to

8 trainees for whom secondary and higher education has not been

9 available.

10 Section 90-20. The Public Utilities Act is amended by

11 changing Sections 8-103B, 9-220.3, 16-107, 16-107.5, 16-107.6,

12 16-111.5, and 16-128B and by adding Sections 8-104.1, 16-107.7,

13 16-107.8, 16-108.9, 16-108.13, 16-108.17, and 16-115E as

14 follows:

15 (220 ILCS 5/8-103B)

16 Sec. 8-103B. Energy efficiency and demand-response

17 measures.

18 (a) It is the policy of the State that electric utilities

19 are required to use cost-effective energy efficiency and

20 demand-response measures to reduce delivery load. Requiring

21 investment in cost-effective energy efficiency and

22 demand-response measures will reduce direct and indirect costs

23 to consumers by decreasing environmental impacts and by

24 avoiding or delaying the need for new generation, transmission,

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1 and distribution infrastructure. It serves the public interest

2 to allow electric utilities to recover costs for reasonably and

3 prudently incurred expenditures for energy efficiency and

4 demand-response measures. As used in this Section,

5 "cost-effective" means that the measures satisfy the total

6 resource cost test. The low-income measures described in

7 subsection (c) of this Section shall not be required to meet

8 the total resource cost test. For purposes of this Section, the

9 terms "energy-efficiency", "demand-response", "electric

10 utility", and "total resource cost test" have the meanings set

11 forth in the Illinois Power Agency Act.

12 (a-5) This Section applies to electric utilities serving

13 more than 500,000 retail customers in the State for those

14 multi-year plans commencing after December 31, 2017.

15 (b) For purposes of this Section, electric utilities

16 subject to this Section that serve more than 3,000,000 retail

17 customers in the State shall be deemed to have achieved a

18 cumulative persisting annual savings of 6.6% from energy

19 efficiency measures and programs implemented during the period

20 beginning January 1, 2012 and ending December 31, 2017, which

21 percent is based on the deemed average weather normalized sales

22 of electric power and energy during calendar years 2014, 2015,

23 and 2016 of 88,000,000 MWhs. ~~For the purposes of this~~

24 ~~subsection (b) and subsection (b-5), the 88,000,000 MWhs of~~

25 ~~deemed electric power and energy sales shall be reduced by the~~

26 ~~number of MWhs equal to the sum of the annual consumption of~~

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1 ~~customers that are exempt from subsections (a) through (j) of~~

2 ~~this Section under subsection (l) of this Section, as averaged~~

3 ~~across the calendar years 2014, 2015, and 2016.~~ After 2017, the

4 deemed value of cumulative persisting annual savings from

5 energy efficiency measures and programs implemented during the

6 period beginning January 1, 2012 and ending December 31, 2017,

7 shall be reduced each year, as follows, and the applicable

8 value shall be applied to and count toward the utility's

9 achievement of the cumulative persisting annual savings goals

10 set forth in subsection (b-5):

11 (1) 5.8% deemed cumulative persisting annual savings

12 for the year ending December 31, 2018;

13 (2) 5.2% deemed cumulative persisting annual savings

14 for the year ending December 31, 2019;

15 (3) 4.5% deemed cumulative persisting annual savings

16 for the year ending December 31, 2020;

17 (4) 4.0% deemed cumulative persisting annual savings

18 for the year ending December 31, 2021;

19 (5) 3.5% deemed cumulative persisting annual savings

20 for the year ending December 31, 2022;

21 (6) 3.1% deemed cumulative persisting annual savings

22 for the year ending December 31, 2023;

23 (7) 2.8% deemed cumulative persisting annual savings

24 for the year ending December 31, 2024;

25 (8) 2.5% deemed cumulative persisting annual savings

26 for the year ending December 31, 2025;

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1 (9) 2.3% deemed cumulative persisting annual savings

2 for the year ending December 31, 2026;

3 (10) 2.1% deemed cumulative persisting annual savings

4 for the year ending December 31, 2027;

5 (11) 1.8% deemed cumulative persisting annual savings

6 for the year ending December 31, 2028;

7 (12) 1.7% deemed cumulative persisting annual savings

8 for the year ending December 31, 2029; ~~and~~

9 (13) 1.5% deemed cumulative persisting annual savings

10 for the year ending December 31, 2030; ~~.~~

11 (14) 1.3% deemed cumulative persisting annual savings

12 for the year ending December 31, 2031;

13 (15) 1.1% deemed cumulative persisting annual savings

14 for the year ending December 31, 2032;

15 (16) 0.9% deemed cumulative persisting annual savings

16 for the year ending December 31, 2033;

17 (17) 0.7% deemed cumulative persisting annual savings

18 for the year ending December 31, 2034;

19 (18) 0.5% deemed cumulative persisting annual savings

20 for the year ending December 31, 2035;

21 (19) 0.4% deemed cumulative persisting annual savings

22 for the year ending December 31, 2036;

23 (20) 0.3% deemed cumulative persisting annual savings

24 for the year ending December 31, 2037;

25 (21) 0.2% deemed cumulative persisting annual savings

26 for the year ending December 31, 2038;

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1 (22) 0.1% deemed cumulative persisting annual savings

2 for the year ending December 31, 2039; and

3 (23) 0.0% deemed cumulative persisting annual savings

4 for the year ending December 31, 2040 and all subsequent

5 years.

6 For purposes of this Section, "cumulative persisting

7 annual savings" means the total electric energy savings in a

8 given year from measures installed in that year or in previous

9 years, but no earlier than January 1, 2012, that are still

10 operational and providing savings in that year because the

11 measures have not yet reached the end of their useful lives.

12 (b-5) Beginning in 2018, electric utilities subject to this

13 Section that serve more than 3,000,000 retail customers in the

14 State shall achieve the following cumulative persisting annual

15 savings goals, as modified by subsection (f) of this Section

16 and as compared to the deemed baseline of 88,000,000 MWhs of

17 electric power and energy sales set forth in subsection (b), ~~as~~

18 ~~reduced by the number of MWhs equal to the sum of the annual~~

19 ~~consumption of customers that are exempt from subsections (a)~~

20 ~~through (j) of this Section under subsection (l) of this~~

21 ~~Section as averaged across the calendar years 2014, 2015, and~~

22 ~~2016,~~ through the implementation of energy efficiency measures

23 during the applicable year and in prior years, but no earlier

24 than January 1, 2012:

25 (1) 7.8% cumulative persisting annual savings for the

26 year ending December 31, 2018;

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1 (2) 9.1% cumulative persisting annual savings for the

2 year ending December 31, 2019;

3 (3) 10.4% cumulative persisting annual savings for the

4 year ending December 31, 2020;

5 (4) 11.8% cumulative persisting annual savings for the

6 year ending December 31, 2021;

7 (5) 13.1% cumulative persisting annual savings for the

8 year ending December 31, 2022;

9 (6) 14.4% cumulative persisting annual savings for the

10 year ending December 31, 2023;

11 (7) 15.7% cumulative persisting annual savings for the

12 year ending December 31, 2024;

13 (8) 17% cumulative persisting annual savings for the

14 year ending December 31, 2025;

15 (9) 17.9% cumulative persisting annual savings for the

16 year ending December 31, 2026;

17 (10) 18.8% cumulative persisting annual savings for

18 the year ending December 31, 2027;

19 (11) 19.7% cumulative persisting annual savings for

20 the year ending December 31, 2028;

21 (12) 20.6% cumulative persisting annual savings for

22 the year ending December 31, 2029; and

23 (13) 21.5% cumulative persisting annual savings for

24 the year ending December 31, 2030.

25 No later than December 31, 2020, the Illinois Commerce

26 Commission shall establish additional cumulative persisting

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1 annual savings goals for the years 2031 through 2035. The

2 Commission shall also establish additional cumulative

3 persisting annual savings goals every 5 years thereafter to

4 ensure utilities always have goals that extend at least 11

5 years into the future. The cumulative persisting annual savings

6 goals beyond the year 2030 shall increase by 0.9 percentage

7 points per year, absent a Commission decision to initiate a

8 proceeding to consider establishing goals that increase by more

9 or less than that amount. Such a proceeding must be conducted

10 in accordance with the procedures described in subsection (f)

11 of this Section. If such a proceeding is initiated, the

12 cumulative persisting annual savings goals established by the

13 Commission through that proceeding shall reflect the

14 Commission's best estimate of the maximum amount of additional

15 savings that are forecast to be cost-effectively achievable

16 unless such best estimates would result in goals that represent

17 less than 0.5 percentage point annual increases in total

18 cumulative persisting annual savings. The Commission may only

19 establish goals that represent less than 0.5 percentage point

20 annual increases in cumulative persisting annual savings if it

21 can demonstrate, based on clear and convincing evidence, that

22 0.5 percentage point increases are not cost-effectively

23 achievable. The Commission shall inform its decision based on

24 an energy efficiency potential study which conforms to the

25 requirements of subsection (f-5) of this Section.

26 (b-10) For purposes of this Section, electric utilities

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1 subject to this Section that serve less than 3,000,000 retail

2 customers but more than 500,000 retail customers in the State

3 shall be deemed to have achieved a cumulative persisting annual

4 savings of 6.6% from energy efficiency measures and programs

5 implemented during the period beginning January 1, 2012 and

6 ending December 31, 2017, which is based on the deemed average

7 weather normalized sales of electric power and energy during

8 calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. ~~For the~~

9 ~~purposes of this subsection (b-10) and subsection (b-15), the~~

10 ~~36,900,000 MWhs of deemed electric power and energy sales shall~~

11 ~~be reduced by the number of MWhs equal to the sum of the annual~~

12 ~~consumption of customers that are exempt from subsections (a)~~

13 ~~through (j) of this Section under subsection (l) of this~~

14 ~~Section, as averaged across the calendar years 2014, 2015, and~~

15 ~~2016.~~ After 2017, the deemed value of cumulative persisting

16 annual savings from energy efficiency measures and programs

17 implemented during the period beginning January 1, 2012 and

18 ending December 31, 2017, shall be reduced each year, as

19 follows, and the applicable value shall be applied to and count

20 toward the utility's achievement of the cumulative persisting

21 annual savings goals set forth in subsection (b-15):

22 (1) 5.8% deemed cumulative persisting annual savings

23 for the year ending December 31, 2018;

24 (2) 5.2% deemed cumulative persisting annual savings

25 for the year ending December 31, 2019;

26 (3) 4.5% deemed cumulative persisting annual savings

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1 for the year ending December 31, 2020;

2 (4) 4.0% deemed cumulative persisting annual savings

3 for the year ending December 31, 2021;

4 (5) 3.5% deemed cumulative persisting annual savings

5 for the year ending December 31, 2022;

6 (6) 3.1% deemed cumulative persisting annual savings

7 for the year ending December 31, 2023;

8 (7) 2.8% deemed cumulative persisting annual savings

9 for the year ending December 31, 2024;

10 (8) 2.5% deemed cumulative persisting annual savings

11 for the year ending December 31, 2025;

12 (9) 2.3% deemed cumulative persisting annual savings

13 for the year ending December 31, 2026;

14 (10) 2.1% deemed cumulative persisting annual savings

15 for the year ending December 31, 2027;

16 (11) 1.8% deemed cumulative persisting annual savings

17 for the year ending December 31, 2028;

18 (12) 1.7% deemed cumulative persisting annual savings

19 for the year ending December 31, 2029; ~~and~~

20 (13) 1.5% deemed cumulative persisting annual savings

21 for the year ending December 31, 2030; ~~.~~

22 (14) 1.3% deemed cumulative persisting annual savings

23 for the year ending December 31, 2031;

24 (15) 1.1% deemed cumulative persisting annual savings

25 for the year ending December 31, 2032;

26 (16) 0.9% deemed cumulative persisting annual savings

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1 for the year ending December 31, 2033;

2 (17) 0.7% deemed cumulative persisting annual savings

3 for the year ending December 31, 2034;

4 (18) 0.5% deemed cumulative persisting annual savings

5 for the year ending December 31, 2035;

6 (19) 0.4% deemed cumulative persisting annual savings

7 for the year ending December 31, 2036;

8 (20) 0.3% deemed cumulative persisting annual savings

9 for the year ending December 31, 2037;

10 (21) 0.2% deemed cumulative persisting annual savings

11 for the year ending December 31, 2038;

12 (22) 0.1% deemed cumulative persisting annual savings

13 for the year ending December 31, 2039; and

14 (23) 0.0% deemed cumulative persisting annual savings

15 for the year ending December 31, 2040 and all subsequent

16 years.

17 (b-15) Beginning in 2018, electric utilities subject to

18 this Section that serve less than 3,000,000 retail customers

19 but more than 500,000 retail customers in the State shall

20 achieve the following cumulative persisting annual savings

21 goals~~, as modified by subsection (b-20) and subsection (f) of~~

22 ~~this Section and as compared to the deemed baseline as reduced~~

23 ~~by the number of MWhs equal to the sum of the annual~~

24 ~~consumption of customers that are exempt from subsections (a)~~

25 ~~through (j) of this Section under subsection (l) of this~~

26 ~~Section as averaged across the calendar years 2014, 2015, and~~

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1 ~~2016,~~ through the implementation of energy efficiency measures

2 during the applicable year and in prior years, but no earlier

3 than January 1, 2012:

4 (1) 7.4% cumulative persisting annual savings for the

5 year ending December 31, 2018;

6 (2) 8.2% cumulative persisting annual savings for the

7 year ending December 31, 2019;

8 (3) 9.0% cumulative persisting annual savings for the

9 year ending December 31, 2020;

10 (4) 9.8% cumulative persisting annual savings for the

11 year ending December 31, 2021;

12 (5) 10.6% cumulative persisting annual savings for the

13 year ending December 31, 2022;

14 (6) 11.4% cumulative persisting annual savings for the

15 year ending December 31, 2023;

16 (7) 12.2% cumulative persisting annual savings for the

17 year ending December 31, 2024;

18 (8) 13% cumulative persisting annual savings for the

19 year ending December 31, 2025;

20 (9) 13.6% cumulative persisting annual savings for the

21 year ending December 31, 2026;

22 (10) 14.2% cumulative persisting annual savings for

23 the year ending December 31, 2027;

24 (11) 14.8% cumulative persisting annual savings for

25 the year ending December 31, 2028;

26 (12) 15.4% cumulative persisting annual savings for

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1 the year ending December 31, 2029; and

2 (13) 16% cumulative persisting annual savings for the

3 year ending December 31, 2030.

4 No later than December 31, 2020, the Illinois Commerce

5 Commission shall establish additional cumulative persisting

6 annual savings goals for the years 2031 through 2035. The

7 Commission shall also establish additional cumulative

8 persisting annual savings goals every 5 years thereafter to

9 ensure utilities always have goals that extend at least 11

10 years into the future. The cumulative persisting annual savings

11 goals beyond the year 2030 shall increase by 0.6 percentage

12 points per year, absent a Commission decision to initiate a

13 proceeding to consider establishing goals that increase by more

14 or less than that amount. Such a proceeding must be conducted

15 in accordance with the procedures described in subsection (f)of

16 this Section. If such a proceeding is initiated, the cumulative

17 persisting annual savings goals established by the Commission

18 through that proceeding shall reflect the Commission's best

19 estimate of the maximum amount of additional savings that are

20 forecast to be cost-effectively achievable unless such best

21 estimates would result in goals that represent less than 0.4

22 percentage point annual increases in total cumulative

23 persisting annual savings. The Commission may only establish

24 goals that represent less than 0.4 percentage point annual

25 increases in cumulative persisting annual savings if it can

26 demonstrate, based on clear and convincing evidence, that 0.4

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1 percentage point increases are not cost-effectively

2 achievable. The Commission shall inform its decision based on

3 an energy efficiency potential study which conforms to the

4 requirements of subsection (f-5) of this Section.

5 ~~The difference between the cumulative persisting annual~~

6 ~~savings goal for the applicable calendar year and the~~

7 ~~cumulative persisting annual savings goal for the immediately~~

8 ~~preceding calendar year is 0.8% for the period of January 1,~~

9 ~~2018 through December 31, 2025 and 0.6% for the period of~~

10 ~~January 1, 2026 through December 31, 2030.~~

11 (b-20) Each electric utility subject to this Section may

12 include cost-effective voltage optimization measures in its

13 plans submitted under subsections (f) and (g) of this Section,

14 and the costs incurred by a utility to implement the measures

15 under a Commission-approved plan shall be recovered under the

16 provisions of Article IX or Section 16-108.5 of this Act. For

17 purposes of this Section, the measure life of voltage

18 optimization measures shall be 15 years. The measure life

19 period is independent of the depreciation rate of the voltage

20 optimization assets deployed. Utilities may claim savings from

21 voltage optimization on circuits for more than 15 years if they

22 can demonstrate that they have made additional investments

23 necessary to enable voltage optimization savings to continue

24 beyond 15 years. Such demonstrations must be subject to the

25 review of independent evaluation.

26 Within 270 days after June 1, 2017 (the effective date of

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1 Public Act 99-906) ~~this amendatory Act of the 99th General~~

2 ~~Assembly~~, an electric utility that serves less than 3,000,000

3 retail customers but more than 500,000 retail customers in the

4 State shall file a plan with the Commission that identifies the

5 cost-effective voltage optimization investment the electric

6 utility plans to undertake through December 31, 2024. The

7 Commission, after notice and hearing, shall approve or approve

8 with modification the plan within 120 days after the plan's

9 filing and, in the order approving or approving with

10 modification the plan, the Commission shall adjust the

11 applicable cumulative persisting annual savings goals set

12 forth in subsection (b-15) to reflect any amount of

13 cost-effective energy savings approved by the Commission that

14 is greater than or less than the following cumulative

15 persisting annual savings values attributable to voltage

16 optimization for the applicable year:

17 (1) 0.0% of cumulative persisting annual savings for

18 the year ending December 31, 2018;

19 (2) 0.17% of cumulative persisting annual savings for

20 the year ending December 31, 2019;

21 (3) 0.17% of cumulative persisting annual savings for

22 the year ending December 31, 2020;

23 (4) 0.33% of cumulative persisting annual savings for

24 the year ending December 31, 2021;

25 (5) 0.5% of cumulative persisting annual savings for

26 the year ending December 31, 2022;

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1 (6) 0.67% of cumulative persisting annual savings for

2 the year ending December 31, 2023;

3 (7) 0.83% of cumulative persisting annual savings for

4 the year ending December 31, 2024; and

5 (8) 1.0% of cumulative persisting annual savings for

6 the year ending December 31, 2025 and all subsequent years.

7 (b-25) In the event an electric utility jointly offers an

8 energy efficiency measure or program with a gas utility under

9 plans approved under this Section and Section 8-104 of this

10 Act, the electric utility may continue offering the program,

11 including the gas energy efficiency measures, in the event the

12 gas utility discontinues funding the program. In that event,

13 the energy savings value associated with such other fuels shall

14 be converted to electric energy savings on an equivalent Btu

15 basis for the premises. However, the electric utility shall

16 prioritize programs for low-income residential customers to

17 the extent practicable. An electric utility may recover the

18 costs of offering the gas energy efficiency measures under this

19 subsection (b-25).

20 For those energy efficiency measures or programs that save

21 both electricity and other fuels but are not jointly offered

22 with a gas utility under plans approved under this Section and

23 Section 8-104 or not offered with an affiliated gas utility

24 under paragraph (6) of subsection (f) of Section 8-104 of this

25 Act, the electric utility may count savings of fuels other than

26 electricity toward the achievement of its annual savings goal,

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1 and the energy savings value associated with such other fuels

2 shall be converted to electric energy savings on an equivalent

3 Btu basis at the premises.

4 In no event shall more than 10% of each year's applicable

5 annual total savings requirement ~~incremental goal~~ as defined in

6 paragraph (7) of subsection (g) of this Section be met through

7 savings of fuels other than electricity.

8 (c) Electric utilities shall be responsible for overseeing

9 the design, development, and filing of energy efficiency plans

10 with the Commission and may, as part of that implementation,

11 outsource various aspects of program development and

12 implementation. A minimum of 10%, for electric utilities that

13 serve more than 3,000,000 retail customers in the State, and a

14 minimum of 7%, for electric utilities that serve less than

15 3,000,000 retail customers but more than 500,000 retail

16 customers in the State, of the utility's entire portfolio

17 funding level for a given year shall be used to procure

18 cost-effective energy efficiency measures from units of local

19 government, municipal corporations, school districts, public

20 housing, ~~and~~ community college districts, and buildings owned

21 by nonprofit organizations,, provided that a minimum

22 percentage of available funds shall be used to procure energy

23 efficiency from public housing, which percentage shall be equal

24 to public housing's share of public building energy

25 consumption.

26 The utilities shall also implement energy efficiency

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1 measures targeted at low-income households, which, for

2 purposes of this Section, shall be defined as households at or

3 below 80% of area median income, and expenditures to implement

4 the measures shall be no less than $35,000,000 ~~$25,000,000~~ per

5 year for electric utilities that serve more than 3,000,000

6 retail customers in the State and no less than $11,000,000

7 ~~$8,350,000~~ per year for electric utilities that serve less than

8 3,000,000 retail customers but more than 500,000 retail

9 customers in the State. Spending on efficiency programs

10 targeted at low-income households shall be approximately

11 proportional to the magnitude of cost-effective energy

12 efficiency opportunities in low-income single-family and

13 multi-family buildings.

14 The utilities shall work to bundle low-income energy

15 efficiency offerings with other programs that serve low-income

16 households to maximize the benefits going to these households.

17 The utilities shall market and implement low-income energy

18 efficiency programs in coordination with low-income assistance

19 programs, Solar for All, and weatherization whenever

20 practicable. The program implementer shall walk the customer

21 through the enrollment process for any programs for which the

22 customer is eligible. The utilities shall also pilot targeting

23 customers with high arrearages, high energy intensity (ratio of

24 energy usage divided by home or unit square footage), or energy

25 assistance programs with energy efficiency offerings, and then

26 track reduction in arrearages as a result of the targeting.

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1 This targeting and bundling of low-income energy programs shall

2 be offered to both low-income single-family and multi-family

3 customers (owners and residents).

4 The utilities shall also implement a health and safety fund

5 of a minimum of 0.5%, for electric utilities that serve more

6 than 3,000,000 retail customers in the State, and a minimum of

7 0.5%, for electric utilities that serve less than 3,000,000

8 retail customers but more than 500,000 retail customers in the

9 State, of the utility's entire portfolio funding level for a

10 given year, that shall be used for the purpose of making grants

11 for technical assistance, construction, reconstruction,

12 improvement, or repair of buildings to facilitate their

13 participation in the energy efficiency programs targeted at

14 low-income single-family and multi-family households. These

15 funds may also be used for the purpose of making grants for

16 technical assistance, construction, reconstruction,

17 improvement, or repair of the following buildings to facilitate

18 their participation in the energy efficiency programs created

19 by this Section: (1) buildings that are owned or operated by

20 registered 501(c)(3) public charities; and (2) day care

21 centers, day care homes, or group day care homes, as defined

22 under 89 Ill. Adm. Code Part 406, 407, or 408, respectively.

23 Each electric utility shall assess opportunities to

24 implement cost-effective energy efficiency measures and

25 programs through a public housing authority or authorities

26 located in its service territory. If such opportunities are

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1 identified, the utility shall propose such measures and

2 programs to address the opportunities. Expenditures to address

3 such opportunities shall be credited toward the minimum

4 procurement and expenditure requirements set forth in this

5 subsection (c).

6 Implementation of energy efficiency measures and programs

7 targeted at low-income households should be contracted, when it

8 is practicable, to independent third parties that have

9 demonstrated capabilities to serve such households, with a

10 preference for not-for-profit entities and government agencies

11 that have existing relationships with or experience serving

12 low-income communities in the State.

13 Each electric utility shall develop and implement

14 reporting procedures that address and assist in determining the

15 amount of energy savings that can be applied to the low-income

16 procurement and expenditure requirements set forth in this

17 subsection (c).

18 The electric utilities participate in ~~shall also convene~~ a

19 low-income energy efficiency advisory committee to allow a

20 variety of stakeholders, especially those living or working in

21 low-communities, to assist in the design and evaluation of the

22 low-income energy efficiency programs. The committee shall be

23 comprised of the electric utilities subject to the requirements

24 of this Section, the gas utilities subject to the requirements

25 of Section 8-104.1 ~~8-104~~ of this Act, the utilities' low-income

26 energy efficiency implementation contractors, nonprofit

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1 organizations, community action agencies, advocacy groups,

2 State and local governmental agencies, and representatives of

3 community-based organizations. The committee shall be convened

4 by an independent third-party facilitator and a

5 community-based organization in a low-income community. There

6 shall be a leadership committee comprised of a variety of

7 stakeholders, with at least one community-based organization

8 involved. Meetings shall include concrete opportunities for

9 groups to provide meaningful input into plan design, mid-cycle

10 changes, and evaluation throughout the year to help reduce

11 litigation in future plan filings. All meetings must be

12 accessible, with rotating locations, call-in options, and

13 materials and agendas circulated well in advance. There shall

14 also be opportunities for input outside of meetings from those

15 with limited capacity and ability to attend, via one-on-one

16 meetings, surveys, and calls. Meetings shall also include

17 opportunities to bundle and coordinate low-income energy

18 efficiency with Solar for All and energy assistance programs.

19 Meetings shall include educational opportunities for

20 stakeholders to learn more about these additional offerings,

21 and the committee shall assist in the figuring out the best

22 methods for coordinated delivery and implementation of

23 offerings when serving low-income communities.

24 (d) Notwithstanding any other provision of law to the

25 contrary, a utility providing approved energy efficiency

26 measures and, if applicable, demand-response measures in the

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1 State shall be permitted to recover all reasonable and

2 prudently incurred costs of those measures from all retail

3 customers, except as provided in subsection (l) of this

4 Section, as follows, provided that nothing in this subsection

5 (d) permits the double recovery of such costs from customers:

6 (1) The utility may recover its costs through an

7 automatic adjustment clause tariff filed with and approved

8 by the Commission. The tariff shall be established outside

9 the context of a general rate case. Each year the

10 Commission shall initiate a review to reconcile any amounts

11 collected with the actual costs and to determine the

12 required adjustment to the annual tariff factor to match

13 annual expenditures. To enable the financing of the

14 incremental capital expenditures, including regulatory

15 assets, for electric utilities that serve less than

16 3,000,000 retail customers but more than 500,000 retail

17 customers in the State, the utility's actual year-end

18 capital structure that includes a common equity ratio,

19 excluding goodwill, of up to and including 50% of the total

20 capital structure shall be deemed reasonable and used to

21 set rates.

22 (2) A utility may recover its costs through an energy

23 efficiency formula rate approved by the Commission under a

24 filing under subsections (f) and (g) of this Section, which

25 shall specify the cost components that form the basis of

26 the rate charged to customers with sufficient specificity

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1 to operate in a standardized manner and be updated annually

2 with transparent information that reflects the utility's

3 actual costs to be recovered during the applicable rate

4 year, which is the period beginning with the first billing

5 day of January and extending through the last billing day

6 of the following December. The energy efficiency formula

7 rate shall be implemented through a tariff filed with the

8 Commission under subsections (f) and (g) of this Section

9 that is consistent with the provisions of this paragraph

10 (2) and that shall be applicable to all delivery services

11 customers. The Commission shall conduct an investigation

12 of the tariff in a manner consistent with the provisions of

13 this paragraph (2), subsections (f) and (g) of this

14 Section, and the provisions of Article IX of this Act to

15 the extent they do not conflict with this paragraph (2).

16 The energy efficiency formula rate approved by the

17 Commission shall remain in effect at the discretion of the

18 utility and shall do the following:

19 (A) Provide for the recovery of the utility's

20 actual costs incurred under this Section that are

21 prudently incurred and reasonable in amount consistent

22 with Commission practice and law. The sole fact that a

23 cost differs from that incurred in a prior calendar

24 year or that an investment is different from that made

25 in a prior calendar year shall not imply the imprudence

26 or unreasonableness of that cost or investment.

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1 (B) Reflect the utility's actual year-end capital

2 structure for the applicable calendar year, excluding

3 goodwill, subject to a determination of prudence and

4 reasonableness consistent with Commission practice and

5 law. To enable the financing of the incremental capital

6 expenditures, including regulatory assets, for

7 electric utilities that serve less than 3,000,000

8 retail customers but more than 500,000 retail

9 customers in the State, a participating electric

10 utility's actual year-end capital structure that

11 includes a common equity ratio, excluding goodwill, of

12 up to and including 50% of the total capital structure

13 shall be deemed reasonable and used to set rates.

14 (C) Include a cost of equity, which shall be

15 calculated as the sum of the following:

16 (i) the average for the applicable calendar

17 year of the monthly average yields of 30-year U.S.

18 Treasury bonds published by the Board of Governors

19 of the Federal Reserve System in its weekly H.15

20 Statistical Release or successor publication; and

21 (ii) 580 basis points.

22 At such time as the Board of Governors of the

23 Federal Reserve System ceases to include the monthly

24 average yields of 30-year U.S. Treasury bonds in its

25 weekly H.15 Statistical Release or successor

26 publication, the monthly average yields of the U.S.

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1 Treasury bonds then having the longest duration

2 published by the Board of Governors in its weekly H.15

3 Statistical Release or successor publication shall

4 instead be used for purposes of this paragraph (2).

5 (D) Permit and set forth protocols, subject to a

6 determination of prudence and reasonableness

7 consistent with Commission practice and law, for the

8 following:

9 (i) recovery of incentive compensation expense

10 that is based on the achievement of operational

11 metrics, including metrics related to budget

12 controls, outage duration and frequency, safety,

13 customer service, efficiency and productivity, and

14 environmental compliance; however, this protocol

15 shall not apply if such expense related to costs

16 incurred under this Section is recovered under

17 Article IX or Section 16-108.5 of this Act;

18 incentive compensation expense that is based on

19 net income or an affiliate's earnings per share

20 shall not be recoverable under the energy

21 efficiency formula rate;

22 (ii) recovery of pension and other

23 post-employment benefits expense, provided that

24 such costs are supported by an actuarial study;

25 however, this protocol shall not apply if such

26 expense related to costs incurred under this

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1 Section is recovered under Article IX or Section

2 16-108.5 of this Act;

3 (iii) recovery of existing regulatory assets

4 over the periods previously authorized by the

5 Commission;

6 (iv) as described in subsection (e),

7 amortization of costs incurred under this Section;

8 and

9 (v) projected, weather normalized billing

10 determinants for the applicable rate year.

11 (E) Provide for an annual reconciliation, as

12 described in paragraph (3) of this subsection (d), less

13 any deferred taxes related to the reconciliation, with

14 interest at an annual rate of return equal to the

15 utility's weighted average cost of capital, including

16 a revenue conversion factor calculated to recover or

17 refund all additional income taxes that may be payable

18 or receivable as a result of that return, of the energy

19 efficiency revenue requirement reflected in rates for

20 each calendar year, beginning with the calendar year in

21 which the utility files its energy efficiency formula

22 rate tariff under this paragraph (2), with what the

23 revenue requirement would have been had the actual cost

24 information for the applicable calendar year been

25 available at the filing date.

26 The utility shall file, together with its tariff, the

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1 projected costs to be incurred by the utility during the

2 rate year under the utility's multi-year plan approved

3 under subsections (f) and (g) of this Section, including,

4 but not limited to, the projected capital investment costs

5 and projected regulatory asset balances with

6 correspondingly updated depreciation and amortization

7 reserves and expense, that shall populate the energy

8 efficiency formula rate and set the initial rates under the

9 formula.

10 The Commission shall review the proposed tariff in

11 conjunction with its review of a proposed multi-year plan,

12 as specified in paragraph (5) of subsection (g) of this

13 Section. The review shall be based on the same evidentiary

14 standards, including, but not limited to, those concerning

15 the prudence and reasonableness of the costs incurred by

16 the utility, the Commission applies in a hearing to review

17 a filing for a general increase in rates under Article IX

18 of this Act. The initial rates shall take effect beginning

19 with the January monthly billing period following the

20 Commission's approval.

21 The tariff's rate design and cost allocation across

22 customer classes shall be consistent with the utility's

23 automatic adjustment clause tariff in effect on June 1,

24 2017 (the effective date of Public Act 99-906) ~~this~~

25 ~~amendatory Act of the 99th General Assembly~~; however, the

26 Commission may revise the tariff's rate design and cost

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1 allocation in subsequent proceedings under paragraph (3)

2 of this subsection (d).

3 If the energy efficiency formula rate is terminated,

4 the then current rates shall remain in effect until such

5 time as the energy efficiency costs are incorporated into

6 new rates that are set under this subsection (d) or Article

7 IX of this Act, subject to retroactive rate adjustment,

8 with interest, to reconcile rates charged with actual

9 costs.

10 (3) The provisions of this paragraph (3) shall only

11 apply to an electric utility that has elected to file an

12 energy efficiency formula rate under paragraph (2) of this

13 subsection (d). Subsequent to the Commission's issuance of

14 an order approving the utility's energy efficiency formula

15 rate structure and protocols, and initial rates under

16 paragraph (2) of this subsection (d), the utility shall

17 file, on or before June 1 of each year, with the Chief

18 Clerk of the Commission its updated cost inputs to the

19 energy efficiency formula rate for the applicable rate year

20 and the corresponding new charges, as well as the

21 information described in paragraph (9) of subsection (g) of

22 this Section. Each such filing shall conform to the

23 following requirements and include the following

24 information:

25 (A) The inputs to the energy efficiency formula

26 rate for the applicable rate year shall be based on the

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1 projected costs to be incurred by the utility during

2 the rate year under the utility's multi-year plan

3 approved under subsections (f) and (g) of this Section,

4 including, but not limited to, projected capital

5 investment costs and projected regulatory asset

6 balances with correspondingly updated depreciation and

7 amortization reserves and expense. The filing shall

8 also include a reconciliation of the energy efficiency

9 revenue requirement that was in effect for the prior

10 rate year (as set by the cost inputs for the prior rate

11 year) with the actual revenue requirement for the prior

12 rate year (determined using a year-end rate base) that

13 uses amounts reflected in the applicable FERC Form 1

14 that reports the actual costs for the prior rate year.

15 Any over-collection or under-collection indicated by

16 such reconciliation shall be reflected as a credit

17 against, or recovered as an additional charge to,

18 respectively, with interest calculated at a rate equal

19 to the utility's weighted average cost of capital

20 approved by the Commission for the prior rate year, the

21 charges for the applicable rate year. Such

22 over-collection or under-collection shall be adjusted

23 to remove any deferred taxes related to the

24 reconciliation, for purposes of calculating interest

25 at an annual rate of return equal to the utility's

26 weighted average cost of capital approved by the

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1 Commission for the prior rate year, including a revenue

2 conversion factor calculated to recover or refund all

3 additional income taxes that may be payable or

4 receivable as a result of that return. Each

5 reconciliation shall be certified by the participating

6 utility in the same manner that FERC Form 1 is

7 certified. The filing shall also include the charge or

8 credit, if any, resulting from the calculation

9 required by subparagraph (E) of paragraph (2) of this

10 subsection (d).

11 Notwithstanding any other provision of law to the

12 contrary, the intent of the reconciliation is to

13 ultimately reconcile both the revenue requirement

14 reflected in rates for each calendar year, beginning

15 with the calendar year in which the utility files its

16 energy efficiency formula rate tariff under paragraph

17 (2) of this subsection (d), with what the revenue

18 requirement determined using a year-end rate base for

19 the applicable calendar year would have been had the

20 actual cost information for the applicable calendar

21 year been available at the filing date.

22 For purposes of this Section, "FERC Form 1" means

23 the Annual Report of Major Electric Utilities,

24 Licensees and Others that electric utilities are

25 required to file with the Federal Energy Regulatory

26 Commission under the Federal Power Act, Sections 3,

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1 4(a), 304 and 209, modified as necessary to be

2 consistent with 83 Ill. Admin. Code Part 415 as of May

3 1, 2011. Nothing in this Section is intended to allow

4 costs that are not otherwise recoverable to be

5 recoverable by virtue of inclusion in FERC Form 1.

6 (B) The new charges shall take effect beginning on

7 the first billing day of the following January billing

8 period and remain in effect through the last billing

9 day of the next December billing period regardless of

10 whether the Commission enters upon a hearing under this

11 paragraph (3).

12 (C) The filing shall include relevant and

13 necessary data and documentation for the applicable

14 rate year. Normalization adjustments shall not be

15 required.

16 Within 45 days after the utility files its annual

17 update of cost inputs to the energy efficiency formula

18 rate, the Commission shall with reasonable notice,

19 initiate a proceeding concerning whether the projected

20 costs to be incurred by the utility and recovered during

21 the applicable rate year, and that are reflected in the

22 inputs to the energy efficiency formula rate, are

23 consistent with the utility's approved multi-year plan

24 under subsections (f) and (g) of this Section and whether

25 the costs incurred by the utility during the prior rate

26 year were prudent and reasonable. The Commission shall also

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1 have the authority to investigate the information and data

2 described in paragraph (9) of subsection (g) of this

3 Section, including the proposed adjustment to the

4 utility's return on equity component of its weighted

5 average cost of capital. During the course of the

6 proceeding, each objection shall be stated with

7 particularity and evidence provided in support thereof,

8 after which the utility shall have the opportunity to rebut

9 the evidence. Discovery shall be allowed consistent with

10 the Commission's Rules of Practice, which Rules of Practice

11 shall be enforced by the Commission or the assigned

12 administrative law judge. The Commission shall apply the

13 same evidentiary standards, including, but not limited to,

14 those concerning the prudence and reasonableness of the

15 costs incurred by the utility, during the proceeding as it

16 would apply in a proceeding to review a filing for a

17 general increase in rates under Article IX of this Act. The

18 Commission shall not, however, have the authority in a

19 proceeding under this paragraph (3) to consider or order

20 any changes to the structure or protocols of the energy

21 efficiency formula rate approved under paragraph (2) of

22 this subsection (d). In a proceeding under this paragraph

23 (3), the Commission shall enter its order no later than the

24 earlier of 195 days after the utility's filing of its

25 annual update of cost inputs to the energy efficiency

26 formula rate or December 15. The utility's proposed return

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1 on equity calculation, as described in paragraphs (7)

2 through (9) of subsection (g) of this Section, shall be

3 deemed the final, approved calculation on December 15 of

4 the year in which it is filed unless the Commission enters

5 an order on or before December 15, after notice and

6 hearing, that modifies such calculation consistent with

7 this Section. The Commission's determinations of the

8 prudence and reasonableness of the costs incurred, and

9 determination of such return on equity calculation, for the

10 applicable calendar year shall be final upon entry of the

11 Commission's order and shall not be subject to reopening,

12 reexamination, or collateral attack in any other

13 Commission proceeding, case, docket, order, rule, or

14 regulation; however, nothing in this paragraph (3) shall

15 prohibit a party from petitioning the Commission to rehear

16 or appeal to the courts the order under the provisions of

17 this Act.

18 (e) Beginning onJune 1, 2017 (the effective date of Public

19 Act 99-906) ~~this amendatory Act of the 99th General Assembly~~, a

20 utility subject to the requirements of this Section may elect

21 to defer, as a regulatory asset, up to the full amount of its

22 expenditures incurred under this Section for each annual

23 period, including, but not limited to, any expenditures

24 incurred above the funding level set by subsection (f) of this

25 Section for a given year. The total expenditures deferred as a

26 regulatory asset in a given year shall be amortized and

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1 recovered over a period that is equal to the weighted average

2 of the energy efficiency measure lives implemented for that

3 year that are reflected in the regulatory asset. The

4 unamortized balance shall be recognized as of December 31 for a

5 given year. The utility shall also earn a return on the total

6 of the unamortized balances of all of the energy efficiency

7 regulatory assets, less any deferred taxes related to those

8 unamortized balances, at an annual rate equal to the utility's

9 weighted average cost of capital that includes, based on a

10 year-end capital structure, the utility's actual cost of debt

11 for the applicable calendar year and a cost of equity, which

12 shall be calculated as the sum of the (i) the average for the

13 applicable calendar year of the monthly average yields of

14 30-year U.S. Treasury bonds published by the Board of Governors

15 of the Federal Reserve System in its weekly H.15 Statistical

16 Release or successor publication; and (ii) 580 basis points,

17 including a revenue conversion factor calculated to recover or

18 refund all additional income taxes that may be payable or

19 receivable as a result of that return. Capital investment costs

20 shall be depreciated and recovered over their useful lives

21 consistent with generally accepted accounting principles. The

22 weighted average cost of capital shall be applied to the

23 capital investment cost balance, less any accumulated

24 depreciation and accumulated deferred income taxes, as of

25 December 31 for a given year.

26 When an electric utility creates a regulatory asset under

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1 the provisions of this Section, the costs are recovered over a

2 period during which customers also receive a benefit which is

3 in the public interest. Accordingly, it is the intent of the

4 General Assembly that an electric utility that elects to create

5 a regulatory asset under the provisions of this Section shall

6 recover all of the associated costs as set forth in this

7 Section. After the Commission has approved the prudence and

8 reasonableness of the costs that comprise the regulatory asset,

9 the electric utility shall be permitted to recover all such

10 costs, and the value and recoverability through rates of the

11 associated regulatory asset shall not be limited, altered,

12 impaired, or reduced.

13 (f) Beginning in 2017, each electric utility shall file an

14 energy efficiency plan with the Commission to meet the energy

15 efficiency standards for the next applicable multi-year period

16 beginning January 1 of the year following the filing, according

17 to the schedule set forth in paragraphs (1) through (3) of this

18 subsection (f). If a utility does not file such a plan on or

19 before the applicable filing deadline for the plan, it shall

20 face a penalty of $100,000 per day until the plan is filed.

21 (1) No later than 30 days after June 1, 2017 (the

22 effective date of Public Act 99-906) ~~this amendatory Act of~~

23 ~~the 99th General Assembly or May 1, 2017, whichever is~~

24 ~~later~~, each electric utility shall file a 4-year energy

25 efficiency plan commencing on January 1, 2018 that is

26 designed to achieve the cumulative persisting annual

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1 savings goals specified in paragraphs (1) through (4) of

2 subsection (b-5) of this Section or in paragraphs (1)

3 through (4) of subsection (b-15) of this Section, as

4 applicable, through implementation of energy efficiency

5 measures; however, the goals may be reduced if the

6 utility's expenditures are limited pursuant to subsection

7 (m) of this Section or, for a utility that serves less than

8 3,000,000 retail customers, if each of the following

9 conditions are met: (A) the plan's analysis and forecasts

10 of the utility's ability to acquire energy savings

11 demonstrate that achievement of such goals is not cost

12 effective; and (B) the amount of energy savings achieved by

13 the utility as determined by the independent evaluator for

14 the most recent year for which savings have been evaluated

15 preceding the plan filing was less than the average annual

16 amount of savings required to achieve the goals for the

17 applicable 4-year plan period. Except as provided in

18 subsection (m) of this Section, annual increases in

19 cumulative persisting annual savings goals during the

20 applicable 4-year plan period shall not be reduced to

21 amounts that are less than the maximum amount of cumulative

22 persisting annual savings that is forecast to be

23 cost-effectively achievable during the 4-year plan period.

24 The Commission shall review any proposed goal reduction as

25 part of its review and approval of the utility's proposed

26 plan.

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1 (2) No later than March 1, 2021, each electric utility

2 shall file a 4-year energy efficiency plan commencing on

3 January 1, 2022 that is designed to achieve the cumulative

4 persisting annual savings goals specified in paragraphs

5 (5) through (8) of subsection (b-5) of this Section or in

6 paragraphs (5) through (8) of subsection (b-15) of this

7 Section, as applicable, through implementation of energy

8 efficiency measures; however, the goals may be reduced if

9 the utility's expenditures are limited pursuant to

10 subsection (m) of this Section or, each of the following

11 conditions are met: (A) the plan's analysis and forecasts

12 of the utility's ability to acquire energy savings

13 demonstrate by clear and convincing evidence that

14 achievement of such goals is not cost effective; and (B)

15 the amount of energy savings achieved by the utility as

16 determined by the independent evaluator for the most recent

17 year for which savings have been evaluated preceding the

18 plan filing was less than the average annual amount of

19 savings required to achieve the goals for the applicable

20 4-year plan period. Except as provided in subsection (m) of

21 this Section, annual increases in cumulative persisting

22 annual savings goals during the applicable 4-year plan

23 period shall not be reduced to amounts that are less than

24 the maximum amount of cumulative persisting annual savings

25 that is forecast to be cost-effectively achievable during

26 the 4-year plan period. The Commission shall review any

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1 proposed goal reduction as part of its review and approval

2 of the utility's proposed plan, taking into account the

3 results of the potential study required by subsection

4 (f-5)of this Section.

5 (3) No later than March 1, 2025, each electric utility

6 shall file a 4-year ~~5-year~~ energy efficiency plan

7 commencing on January 1, 2026 that is designed to achieve

8 the cumulative persisting annual savings goals specified

9 in paragraphs (9) through (12) ~~(13)~~ of subsection (b-5) of

10 this Section or in paragraphs (9) through (12) ~~(13)~~ of

11 subsection (b-15) of this Section, as applicable, through

12 implementation of energy efficiency measures; however, the

13 goals may be reduced if the utility's expenditures are

14 limited pursuant to subsection (m) of this Section or, each

15 of the following conditions are met: (A) the plan's

16 analysis and forecasts of the utility's ability to acquire

17 energy savings demonstrate by clear and convincing

18 evidence that achievement of such goals is not cost

19 effective; and (B) the amount of energy savings achieved by

20 the utility as determined by the independent evaluator for

21 the most recent year for which savings have been evaluated

22 preceding the plan filing was less than the average annual

23 amount of savings required to achieve the goals for the

24 applicable 4-year ~~5-year~~ plan period. Except as provided in

25 subsection (m) of this Section, annual increases in

26 cumulative persisting annual savings goals during the

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1 applicable 4-year ~~5-year~~ plan period shall not be reduced

2 to amounts that are less than the maximum amount of

3 cumulative persisting annual savings that is forecast to be

4 cost-effectively achievable during the 4-year ~~5-year~~ plan

5 period. The Commission shall review any proposed goal

6 reduction as part of its review and approval of the

7 utility's proposed plan, taking into account the results of

8 the potential study required by subsection (f-5)of this

9 Section.

10 (4) No later than March 1, 2029, and every 4 years

11 thereafter, each electric utility shall file a 4-year

12 energy efficiency plan commencing on January 1, 2030, and

13 every 4 years thereafter, respectively, that is designed to

14 achieve the cumulative persisting annual savings goals

15 established by the Illinois Commerce Commission pursuant

16 to direction of subsections (b-5) and (b-15) of this

17 Section, as applicable, through implementation of energy

18 efficiency measures; however, the goals may be reduced if

19 the utility's expenditures are limited pursuant to

20 subsection (m) of this Section or, each of the following

21 conditions are met: (A) the plan's analysis and forecasts

22 of the utility's ability to acquire energy savings

23 demonstrate by clear and convincing evidence that

24 achievement of such goals is not cost effective; and (B)

25 the amount of energy savings achieved by the utility as

26 determined by the independent evaluator for the most recent

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1 year for which savings have been evaluated preceding the

2 plan filing was less than the average annual amount of

3 savings required to achieve the goals for the applicable

4 4-year plan period. Except as provided in subsection (m) of

5 this Section, annual increases in cumulative persisting

6 annual savings goals during the applicable 4-year plan

7 period shall not be reduced to amounts that are less than

8 the maximum amount of cumulative persisting annual savings

9 that is forecast to be cost-effectively achievable during

10 the 4-year plan period. The Commission shall review any

11 proposed goal reduction as part of its review and approval

12 of the utility's proposed plan.

13 Each utility's plan shall set forth the utility's proposals

14 to meet the energy efficiency standards identified in

15 subsection (b-5) or (b-15), as applicable and as such standards

16 may have been modified under this subsection (f), taking into

17 account the unique circumstances of the utility's service

18 territory and results of an energy efficiency potential study

19 as described in subsection (f-5) of this Section. For those

20 plans commencing on January 1, 2018, the Commission shall seek

21 public comment on the utility's plan and shall issue an order

22 approving or disapproving each plan no later than ~~August 31,~~

23 ~~2017, or~~ 105 days after June 1, 2017 (the effective date of

24 Public Act 99-906) ~~this amendatory Act of the 99th General~~

25 ~~Assembly, whichever is later~~. For those plans commencing after

26 December 31, 2021, the Commission shall seek public comment on

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1 the utility's plan and shall issue an order approving or

2 disapproving each plan within 6 months after its submission. If

3 the Commission disapproves a plan, the Commission shall, within

4 30 days, describe in detail the reasons for the disapproval and

5 describe a path by which the utility may file a revised draft

6 of the plan to address the Commission's concerns

7 satisfactorily. If the utility does not refile with the

8 Commission within 60 days, the utility shall be subject to

9 penalties at a rate of $100,000 per day until the plan is

10 filed. This process shall continue, and penalties shall accrue,

11 until the utility has successfully filed a portfolio of energy

12 efficiency and demand-response measures. Penalties shall be

13 deposited into the Energy Efficiency Trust Fund.

14 (f-5) Energy efficiency potential study. An energy

15 efficiency potential study shall be commissioned and overseen

16 by the Illinois Commerce Commission. The potential study shall

17 be reviewed as part of the approval of a utility's plan filed

18 pursuant to subsection (f) of this Section. The potential study

19 shall be designed and conducted with input from a Potential

20 Study Stakeholder Committee established by the Commission.

21 This Committee shall be comprised of representatives from each

22 electric utility, the Illinois Attorney General's office, at

23 least 2 environmental stakeholders, at least one community

24 based organization, and additional parties representing

25 consumers. The Committee shall provide input, at a minimum,

26 into the scope of work for the studies, the selection of

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1 vendors to perform the studies in accordance with appropriate

2 confidentiality and conflict of interest provisions, and draft

3 work products. The Committee shall make best efforts to achieve

4 consensus on the key elements of the potential study,

5 including:

6 (i) savings potential from efficiency measures and

7 program concepts that are known at the time of the study;

8 (ii) likely emergence of new technology or new program

9 concepts that could emerge;

10 (iii) likely savings potential from efficiency

11 measures that may be unique to individual industries or

12 individual facilities; and

13 (iv) the experience of other similar utilities, areas

14 and jurisdictions in maximizing achievement of

15 cost-effective savings.

16 When the Committee is not able to reach consensus, the

17 Commission shall make the final decision.

18 (g) In submitting proposed plans and funding levels under

19 subsection (f) of this Section to meet the savings goals

20 identified in subsection (b-5) or (b-15) of this Section, as

21 applicable, the utility shall:

22 (1) Demonstrate that its proposed energy efficiency

23 measures will achieve the applicable requirements that are

24 identified in subsection (b-5) or (b-15) of this Section,

25 as modified by subsection (f) of this Section.

26 (2) Present specific proposals to implement new

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1 building and appliance standards that have been placed into

2 effect.

3 (3) Demonstrate that its overall portfolio of

4 measures, not including low-income programs described in

5 subsection (c) of this Section, is cost-effective using the

6 total resource cost test or complies with paragraphs (1)

7 through (3) of subsection (f) of this Section and

8 represents a diverse cross-section of opportunities for

9 customers of all rate classes, other than those customers

10 described in subsection (l) of this Section, to participate

11 in the programs. Individual measures need not be cost

12 effective.

13 (3.5) Demonstrate that the utility's plan integrates

14 the delivery of energy efficiency programs with natural gas

15 efficiency programs, programs promoting distributed solar,

16 programs promoting demand response and other efforts to

17 address bill payment issues, including, but not limited to,

18 LIHEAP and the Percent Income Payment Plan, to the extent

19 such integration is practical and has the potential to

20 enhance customer engagement, minimize market confusion, or

21 reduce administrative costs.

22 (4) Present a third-party energy efficiency

23 implementation program subject to the following

24 requirements:

25 (A) beginning with the year commencing January 1,

26 2019, electric utilities that serve more than

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1 3,000,000 retail customers in the State shall fund

2 third-party energy efficiency programs in an amount

3 that is no less than $25,000,000 per year, and electric

4 utilities that serve less than 3,000,000 retail

5 customers but more than 500,000 retail customers in the

6 State shall fund third-party energy efficiency

7 programs in an amount that is no less than $8,350,000

8 per year;

9 (B) during 2018, the utility shall conduct a

10 solicitation process for purposes of requesting

11 proposals from third-party vendors for those

12 third-party energy efficiency programs to be offered

13 during one or more of the years commencing January 1,

14 2019, January 1, 2020, and January 1, 2021; for those

15 multi-year plans commencing on January 1, 2022 and

16 January 1, 2026, the utility shall conduct a

17 solicitation process during 2021 and 2025,

18 respectively, for purposes of requesting proposals

19 from third-party vendors for those third-party energy

20 efficiency programs to be offered during one or more

21 years of the respective multi-year plan period; for

22 each solicitation process, the utility shall identify

23 the sector, technology, or geographical area for which

24 it is seeking requests for proposals; the solicitation

25 process must be either for programs that fill gaps in

26 the utility's program portfolio or for programs that

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1 target business sectors, building types, geographies,

2 or other specific parts of its customer base with

3 initiatives that would be more effective at reaching

4 these customer segments than the utilities' programs

5 filed in its energy efficiency plans.

6 (C) the utility shall propose the bidder

7 qualifications, performance measurement process, and

8 contract structure, which must include a performance

9 payment mechanism and general terms and conditions;

10 the proposed qualifications, process, and structure

11 shall be subject to Commission approval; and

12 (D) the utility shall retain an independent third

13 party to score the proposals received through the

14 solicitation process described in this paragraph (4),

15 rank them according to their cost per lifetime

16 kilowatt-hours saved, and assemble the portfolio of

17 third-party programs.

18 The electric utility shall recover all costs

19 associated with Commission-approved, third-party

20 administered programs regardless of the success of those

21 programs.

22 (4.5) Implement cost-effective demand-response

23 measures to reduce peak demand by 0.1% over the prior year

24 for eligible retail customers, as defined in Section

25 16-111.5 of this Act, and for customers that elect hourly

26 service from the utility pursuant to Section 16-107 of this

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1 Act, provided those customers have not been declared

2 competitive. This requirement continues until December 31,

3 2026.

4 (5) Include a proposed or revised cost-recovery tariff

5 mechanism, as provided for under subsection (d) of this

6 Section, to fund the proposed energy efficiency and

7 demand-response measures and to ensure the recovery of the

8 prudently and reasonably incurred costs of

9 Commission-approved programs.

10 (6) Provide for an annual independent evaluation of the

11 performance of the cost-effectiveness of the utility's

12 portfolio of measures, as well as a full review of the

13 multi-year plan results of the broader net program impacts

14 and, to the extent practical, for adjustment of the

15 measures on a going-forward basis as a result of the

16 evaluations. The resources dedicated to evaluation shall

17 not exceed 3% of portfolio resources in any given year.

18 (7) For electric utilities that serve more than

19 3,000,000 retail customers in the State:

20 (A) Through December 31, 2025, provide for an

21 adjustment to the return on equity component of the

22 utility's weighted average cost of capital calculated

23 under subsection (d) of this Section:

24 (i) If the independent evaluator determines

25 that the utility achieved a cumulative persisting

26 annual savings that is less than the applicable

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1 annual incremental goal, then the return on equity

2 component shall be reduced by a maximum of 200

3 basis points in the event that the utility achieved

4 no more than 75% of such goal. If the utility

5 achieved more than 75% of the applicable annual

6 incremental goal but less than 100% of such goal,

7 then the return on equity component shall be

8 reduced by 8 basis points for each percent by which

9 the utility failed to achieve the goal.

10 (ii) If the independent evaluator determines

11 that the utility achieved a cumulative persisting

12 annual savings that is more than the applicable

13 annual incremental goal, then the return on equity

14 component shall be increased by a maximum of 200

15 basis points in the event that the utility achieved

16 at least 125% of such goal. If the utility achieved

17 more than 100% of the applicable annual

18 incremental goal but less than 125% of such goal,

19 then the return on equity component shall be

20 increased by 8 basis points for each percent by

21 which the utility achieved above the goal. If the

22 applicable annual incremental goal was reduced

23 under paragraphs (1) or (2) of subsection (f) of

24 this Section, then the following adjustments shall

25 be made to the calculations described in this item

26 (ii):

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1 (aa) the calculation for determining

2 achievement that is at least 125% of the

3 applicable annual incremental goal shall use

4 the unreduced applicable annual incremental

5 goal to set the value; and

6 (bb) the calculation for determining

7 achievement that is less than 125% but more

8 than 100% of the applicable annual incremental

9 goal shall use the reduced applicable annual

10 incremental goal to set the value for 100%

11 achievement of the goal and shall use the

12 unreduced goal to set the value for 125%

13 achievement. The 8 basis point value shall also

14 be modified, as necessary, so that the 200

15 basis points are evenly apportioned among each

16 percentage point value between 100% and 125%

17 achievement.

18 (B) For the period January 1, 2026 through December

19 31, 2029 and in all subsequent 4-year periods ~~2030~~,

20 provide for an adjustment to the return on equity

21 component of the utility's weighted average cost of

22 capital calculated under subsection (d) of this

23 Section:

24 (i) If the independent evaluator determines

25 that the utility achieved a cumulative persisting

26 annual savings that is less than the applicable

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1 annual incremental goal, then the return on equity

2 component shall be reduced by a maximum of 200

3 basis points in the event that the utility achieved

4 no more than 66% of such goal. If the utility

5 achieved more than 66% of the applicable annual

6 incremental goal but less than 100% of such goal,

7 then the return on equity component shall be

8 reduced by 6 basis points for each percent by which

9 the utility failed to achieve the goal.

10 (ii) If the independent evaluator determines

11 that the utility achieved a cumulative persisting

12 annual savings that is more than the applicable

13 annual incremental goal, then the return on equity

14 component shall be increased by a maximum of 200

15 basis points in the event that the utility achieved

16 at least 134% of such goal. If the utility achieved

17 more than 100% of the applicable annual

18 incremental goal but less than 134% of such goal,

19 then the return on equity component shall be

20 increased by 6 basis points for each percent by

21 which the utility achieved above the goal. If the

22 applicable annual incremental goal was reduced

23 under paragraph (3) of subsection (f) of this

24 Section, then the following adjustments shall be

25 made to the calculations described in this item

26 (ii):

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1 (aa) the calculation for determining

2 achievement that is at least 134% of the

3 applicable annual incremental goal shall use

4 the unreduced applicable annual incremental

5 goal to set the value; and

6 (bb) the calculation for determining

7 achievement that is less than 134% but more

8 than 100% of the applicable annual incremental

9 goal shall use the reduced applicable annual

10 incremental goal to set the value for 100%

11 achievement of the goal and shall use the

12 unreduced goal to set the value for 134%

13 achievement. The 6 basis point value shall also

14 be modified, as necessary, so that the 200

15 basis points are evenly apportioned among each

16 percentage point value between 100% and 134%

17 achievement.

18 (C) Notwithstanding the provisions of

19 subparagraphs (A) and (B) of this paragraph (7), if the

20 applicable annual incremental goal for an electric

21 utility is ever less than 0.6% of deemed average

22 weather normalized sales of electric power and energy

23 during calendar years 2014, 2015, and 2016, an

24 adjustment to the return on equity component of the

25 utility's weighted average cost of capital calculated

26 under subsection (d) of this Section shall be made as

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1 follows:

2 (i) If the independent evaluator determines

3 that the utility achieved a cumulative persisting

4 annual savings that is less than would have been

5 achieved had the applicable annual incremental

6 goal been achieved, then the return on equity

7 component shall be reduced by a maximum of 200

8 basis points if the utility achieved no more than

9 75% of its applicable annual total savings

10 requirement as defined in paragraph (7.5) of this

11 subsection. If the utility achieved more than 75%

12 of the applicable annual total savings requirement

13 but less than 100% of such goal, then the return on

14 equity component shall be reduced by 8 basis points

15 for each percent by which the utility failed to

16 achieve the goal.

17 (ii) If the independent evaluator determines

18 that the utility achieved a cumulative persisting

19 annual savings that is more than would have been

20 achieved had the applicable annual incremental

21 goal been achieved, then the return on equity

22 component shall be increased by a maximum of 200

23 basis points if the utility achieved at least 125%

24 of its applicable annual total savings

25 requirement. If the utility achieved more than

26 100% of the applicable annual total savings

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1 requirement but less than 125% of such goal, then

2 the return on equity component shall be increased

3 by 8 basis points for each percent by which the

4 utility achieved above the applicable annual total

5 savings requirement. If the applicable annual

6 incremental goal was reduced under paragraphs (1)

7 or (2) of subsection (f) of this Section, then the

8 following adjustments shall be made to the

9 calculations described in this item (ii):

10 (aa) the calculation for determining

11 achievement that is at least 125% of the

12 applicable annual total savings requirement

13 shall use the unreduced applicable annual

14 incremental goal to set the value; and

15 (bb) the calculation for determining

16 achievement that is less than 125% but more

17 than 100% of the Applicable Annual Total

18 Savings Requirement shall use the reduced

19 applicable annual incremental goal to set the

20 value for 100% achievement of the goal and

21 shall use the unreduced goal to set the value

22 for 125% achievement. The 8 basis point value

23 shall also be modified, as necessary, so that

24 the 200 basis points are evenly apportioned

25 among each percentage point value between 100%

26 and 125% achievement.

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1 (7.5) For purposes of this Section, the term

2 "applicable annual incremental goal" means the difference

3 between the cumulative persisting annual savings goal for

4 the calendar year that is the subject of the independent

5 evaluator's determination and the cumulative persisting

6 annual savings goal for the immediately preceding calendar

7 year, as such goals are defined in subsections (b-5) and

8 (b-15) of this Section and as these goals may have been

9 modified as provided for under subsection (b-20) and

10 paragraphs (1) through (3) of subsection (f) of this

11 Section. Under subsections (b), (b-5), (b-10), and (b-15)

12 of this Section, a utility must first replace energy

13 savings from measures that have reached the end of their

14 measure lives and would otherwise have to be replaced to

15 meet the applicable savings goals identified in subsection

16 (b-5) or (b-15) of this Section before any progress towards

17 achievement of its applicable annual incremental goal may

18 be counted. Notwithstanding anything else set forth in this

19 Section, the difference between the actual annual

20 incremental savings achieved in any given year, including

21 the replacement of energy savings from measures that have

22 expired, and the applicable annual incremental goal shall

23 not affect adjustments to the return on equity for

24 subsequent calendar years under this subsection (g).

25 As used in this Section, "applicable annual total

26 savings requirement" means the sum of (i) the applicable

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1 annual savings goal; plus (ii) the amount of new annual

2 savings required to replace savings from efficiency

3 measures that provided cumulative persisting annual

4 savings in the previous year, including savings from

5 programs in 2012 through 2017 for which savings are deemed

6 in subsections (b) and (b-10), but which reached the end of

7 their measure lives by the end of the previous year.

8 (8) For electric utilities that serve less than

9 3,000,000 retail customers but more than 500,000 retail

10 customers in the State:

11 (A) Through December 31, 2025, the applicable

12 annual incremental goal shall be compared to the annual

13 incremental savings as determined by the independent

14 evaluator.

15 (i) The return on equity component shall be

16 reduced by 8 basis points for each percent by which

17 the utility did not achieve 84.4% of the applicable

18 annual incremental goal.

19 (ii) The return on equity component shall be

20 increased by 8 basis points for each percent by

21 which the utility exceeded 100% of the applicable

22 annual incremental goal.

23 (iii) The return on equity component shall not

24 be increased or decreased if the annual

25 incremental savings as determined by the

26 independent evaluator is greater than 84.4% of the

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1 applicable annual incremental goal and less than

2 100% of the applicable annual incremental goal.

3 (iv) The return on equity component shall not

4 be increased or decreased by an amount greater than

5 200 basis points pursuant to this subparagraph

6 (A).

7 (B) For the period of January 1, 2026 through

8 December 31, 2029 and in all subsequent 4-year periods

9 ~~2030~~, the applicable annual incremental goal shall be

10 compared to the annual incremental savings as

11 determined by the independent evaluator.

12 (i) The return on equity component shall be

13 reduced by 6 basis points for each percent by which

14 the utility did not achieve 100% of the applicable

15 annual incremental goal.

16 (ii) The return on equity component shall be

17 increased by 6 basis points for each percent by

18 which the utility exceeded 100% of the applicable

19 annual incremental goal.

20 (iii) The return on equity component shall not

21 be increased or decreased by an amount greater than

22 200 basis points pursuant to this subparagraph

23 (B).

24 (C) Notwithstanding provisions in subparagraphs

25 (A) and (B) of paragraph (7) of this subsection, if the

26 applicable annual incremental goal for an electric

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1 utility is ever less than 0.6% of deemed average

2 weather normalized sales of electric power and energy

3 during calendar years 2014, 2015 and 2016, an

4 adjustment to the return on equity component of the

5 utility's weighted average cost of capital calculated

6 under subsection (d) of this Section shall be made as

7 follows:

8 (i) The return on equity component shall be

9 reduced by 8 basis points for each percent by which

10 the utility did not achieve 100% of the applicable

11 annual total savings requirement.

12 (ii) The return on equity component shall be

13 increased by 8 basis points for each percent by

14 which the utility exceeded 100% of the applicable

15 annual total savings requirement.

16 (iii) The return on equity component shall not

17 be increased or decreased by an amount greater than

18 200 basis points pursuant to this subparagraph

19 (C).

20 (D) ~~(C)~~ If the applicable annual incremental goal

21 was reduced under paragraphs (1), (2), ~~or~~ (3), or (4)

22 of subsection (f) of this Section, then the following

23 adjustments shall be made to the calculations

24 described in subparagraphs (A), ~~and~~ (B), and (C) of

25 this paragraph (8):

26 (i) The calculation for determining

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1 achievement that is at least 125% or 134%, as

2 applicable, of the applicable annual incremental

3 goal or the applicable annual total savings

4 requirement, as applicable, shall use the

5 unreduced applicable annual incremental goal to

6 set the value.

7 (ii) For the period through December 31, 2025,

8 the calculation for determining achievement that

9 is less than 125% but more than 100% of the

10 applicable annual incremental goal or the

11 applicable annual total savings requirement, as

12 applicable, shall use the reduced applicable

13 annual incremental goal to set the value for 100%

14 achievement of the goal and shall use the unreduced

15 goal to set the value for 125% achievement. The 8

16 basis point value shall also be modified, as

17 necessary, so that the 200 basis points are evenly

18 apportioned among each percentage point value

19 between 100% and 125% achievement.

20 (iii) For the period of January 1, 2026 through

21 December 31, 2029 and all subsequent 4-year

22 periods, the calculation for determining

23 achievement that is less than 125% or 134%, as

24 applicable, but more than 100% of the applicable

25 annual incremental goal or the applicable annual

26 total savings requirement, as applicable, shall

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1 use the reduced applicable annual incremental goal

2 to set the value for 100% achievement of the goal

3 and shall use the unreduced goal to set the value

4 for 125% achievement. The 6 or 8 basis point

5 values, as applicable, shall also be modified, as

6 necessary, so that the 200 basis points are evenly

7 apportioned among each percentage point value

8 between 100% and 125% or between 100% and 134%

9 achievement, as applicable. ~~2030, the calculation~~

10 ~~for determining achievement that is less than 134%~~

11 ~~but more than 100% of the applicable annual~~

12 ~~incremental goal shall use the reduced applicable~~

13 ~~annual incremental goal to set the value for 100%~~

14 ~~achievement of the goal and shall use the unreduced~~

15 ~~goal to set the value for 125% achievement. The 6~~

16 ~~basis point value shall also be modified, as~~

17 ~~necessary, so that the 200 basis points are evenly~~

18 ~~apportioned among each percentage point value~~

19 ~~between 100% and 134% achievement.~~

20 (9) The utility shall submit the energy savings data to

21 the independent evaluator no later than 30 days after the

22 close of the plan year. The independent evaluator shall

23 determine the cumulative persisting annual savings for a

24 given plan year, as well as an estimate of job impacts and

25 other macroeconomic impacts of the efficiency programs for

26 that year, no later than 120 days after the close of the

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1 plan year. The utility shall submit an informational filing

2 to the Commission no later than 160 days after the close of

3 the plan year that attaches the independent evaluator's

4 final report identifying the cumulative persisting annual

5 savings for the year and calculates, under paragraph (7) or

6 (8) of this subsection (g), as applicable, any resulting

7 change to the utility's return on equity component of the

8 weighted average cost of capital applicable to the next

9 plan year beginning with the January monthly billing period

10 and extending through the December monthly billing period.

11 However, if the utility recovers the costs incurred under

12 this Section under paragraphs (2) and (3) of subsection (d)

13 of this Section, then the utility shall not be required to

14 submit such informational filing, and shall instead submit

15 the information that would otherwise be included in the

16 informational filing as part of its filing under paragraph

17 (3) of such subsection (d) that is due on or before June 1

18 of each year.

19 For those utilities that must submit the informational

20 filing, the Commission may, on its own motion or by

21 petition, initiate an investigation of such filing,

22 provided, however, that the utility's proposed return on

23 equity calculation shall be deemed the final, approved

24 calculation on December 15 of the year in which it is filed

25 unless the Commission enters an order on or before December

26 15, after notice and hearing, that modifies such

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1 calculation consistent with this Section.

2 The adjustments to the return on equity component

3 described in paragraphs (7) and (8) of this subsection (g)

4 shall be applied as described in such paragraphs through a

5 separate tariff mechanism, which shall be filed by the

6 utility under subsections (f) and (g) of this Section.

7 (10) Electric utilities required to implement

8 efficiency programs under subsections (b-5) and (b-15)

9 shall report annually to the Illinois Commerce Commission

10 and the General Assembly on how hiring, contracting, job

11 training, and other practices related to its energy

12 efficiency programs enhance the diversity of vendors

13 working on such programs. These reports must include data

14 on vendor and employee diversity.

15 (h) No more than 6% of energy efficiency and

16 demand-response program revenue may be allocated for research,

17 development, or pilot deployment of new equipment or measures.

18 (i) When practicable, electric utilities shall incorporate

19 advanced metering infrastructure data into the planning,

20 implementation, and evaluation of energy efficiency measures

21 and programs, subject to the data privacy and confidentiality

22 protections of applicable law.

23 (j) The independent evaluator shall follow the guidelines

24 and use the savings set forth in Commission-approved energy

25 efficiency policy manuals and technical reference manuals, as

26 each may be updated from time to time. Until such time as

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1 measure life values for energy efficiency measures implemented

2 for low-income households under subsection (c) of this Section

3 are incorporated into such Commission-approved manuals, the

4 low-income measures shall have the same measure life values

5 that are established for same measures implemented in

6 households that are not low-income households.

7 (k) Notwithstanding any provision of law to the contrary,

8 an electric utility subject to the requirements of this Section

9 may file a tariff cancelling an automatic adjustment clause

10 tariff in effect under this Section or Section 8-103, which

11 shall take effect no later than one business day after the date

12 such tariff is filed. Thereafter, the utility shall be

13 authorized to defer and recover its expenditures incurred under

14 this Section through a new tariff authorized under subsection

15 (d) of this Section or in the utility's next rate case under

16 Article IX or Section 16-108.5 of this Act, with interest at an

17 annual rate equal to the utility's weighted average cost of

18 capital as approved by the Commission in such case. If the

19 utility elects to file a new tariff under subsection (d) of

20 this Section, the utility may file the tariff within 10 days

21 after June 1, 2017 (the effective date of Public Act 99-906)

22 ~~this amendatory Act of the 99th General Assembly~~, and the cost

23 inputs to such tariff shall be based on the projected costs to

24 be incurred by the utility during the calendar year in which

25 the new tariff is filed and that were not recovered under the

26 tariff that was cancelled as provided for in this subsection.

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1 Such costs shall include those incurred or to be incurred by

2 the utility under its multi-year plan approved under

3 subsections (f) and (g) of this Section, including, but not

4 limited to, projected capital investment costs and projected

5 regulatory asset balances with correspondingly updated

6 depreciation and amortization reserves and expense. The

7 Commission shall, after notice and hearing, approve, or approve

8 with modification, such tariff and cost inputs no later than 75

9 days after the utility filed the tariff, provided that such

10 approval, or approval with modification, shall be consistent

11 with the provisions of this Section to the extent they do not

12 conflict with this subsection (k). The tariff approved by the

13 Commission shall take effect no later than 5 days after the

14 Commission enters its order approving the tariff.

15 No later than 60 days after the effective date of the

16 tariff cancelling the utility's automatic adjustment clause

17 tariff, the utility shall file a reconciliation that reconciles

18 the moneys collected under its automatic adjustment clause

19 tariff with the costs incurred during the period beginning June

20 1, 2016 and ending on the date that the electric utility's

21 automatic adjustment clause tariff was cancelled. In the event

22 the reconciliation reflects an under-collection, the utility

23 shall recover the costs as specified in this subsection (k). If

24 the reconciliation reflects an over-collection, the utility

25 shall apply the amount of such over-collection as a one-time

26 credit to retail customers' bills.

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1 (l) (Blank). ~~For the calendar years covered by a multi-year~~

2 ~~plan commencing after December 31, 2017, subsections (a)~~

3 ~~through (j) of this Section do not apply to any retail~~

4 ~~customers of an electric utility that serves more than~~

5 ~~3,000,000 retail customers in the State and whose total highest~~

6 ~~30 minute demand was more than 10,000 kilowatts, or any retail~~

7 ~~customers of an electric utility that serves less than~~

8 ~~3,000,000 retail customers but more than 500,000 retail~~

9 ~~customers in the State and whose total highest 15 minute demand~~

10 ~~was more than 10,000 kilowatts. For purposes of this subsection~~

11 ~~(l), "retail customer" has the meaning set forth in Section~~

12 ~~16-102 of this Act. A determination of whether this subsection~~

13 ~~is applicable to a customer shall be made for each multi-year~~

14 ~~plan beginning after December 31, 2017. The criteria for~~

15 ~~determining whether this subsection (l) is applicable to a~~

16 ~~retail customer shall be based on the 12 consecutive billing~~

17 ~~periods prior to the start of the first year of each such~~

18 ~~multi-year plan.~~

19 (m) Notwithstanding the requirements of this Section, as

20 part of a proceeding to approve a multi-year plan under

21 subsections (f) and (g) of this Section if the multi-year plan

22 has been designed to maximize savings, but does not meet the

23 cost cap limitations of this subsection, the Commission shall

24 reduce the amount of energy efficiency measures implemented for

25 any single year, and whose costs are recovered under subsection

26 (d) of this Section, by an amount necessary to limit the

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1 estimated average net increase due to the cost of the measures

2 to no more than

3 (1) 3.5% for the each of the 4 years beginning January

4 1, 2018,

5 (2) 3.75% for each of the 4 years beginning January 1,

6 2022, ~~and~~

7 (3) 4% for each of the 5 years beginning January 1,

8 2026,

9 (4) 4.25% for the 5 years beginning January 1, 2031,

10 and

11 (5) 4.25% plus a 0.25% increase for every subsequent

12 5-year period,

13 of the average amount paid per kilowatthour by residential

14 eligible retail customers during calendar year 2015. An

15 electric utility may spend up to 10% more in any year during an

16 applicable multi-year plan period to cost-effectively achieve

17 additional savings so long as the average over the applicable

18 multi-year plan period does not exceed the percentages defined

19 in items (1) through (5). To determine the total amount that

20 may be spent by an electric utility in any single year, the

21 applicable percentage of the average amount paid per

22 kilowatthour shall be multiplied by the total amount of energy

23 delivered by such electric utility in the calendar year 2015,

24 ~~adjusted to reflect the proportion of the utility's load~~

25 ~~attributable to customers who are exempt from subsections (a)~~

26 ~~through (j) of this Section under subsection (l) of this~~

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1 ~~Section~~. For purposes of this subsection (m), the amount paid

2 per kilowatthour includes, without limitation, estimated

3 amounts paid for supply, transmission, distribution,

4 surcharges, and add-on taxes. For purposes of this Section,

5 "eligible retail customers" shall have the meaning set forth in

6 Section 16-111.5 of this Act. Once the Commission has approved

7 a plan under subsections (f) and (g) of this Section, no

8 subsequent rate impact determinations shall be made.

9 (Source: P.A. 99-906, eff. 6-1-17; 100-840, eff. 8-13-18;

10 revised 10-19-18.)

11 (220 ILCS 5/8-104.1 new)

12 Sec. 8-104.1. Gas utilities; annual savings goals.

13 (a) It is the policy of the State that gas utilities are

14 required to use cost-effective energy efficiency to reduce

15 delivery load. Requiring investment in cost-effective energy

16 efficiency will reduce direct and indirect costs to consumers

17 by decreasing environmental impacts and by reducing the amount

18 of natural gas that needs to be purchased and avoiding or

19 delaying the need for new transmission, distribution, storage

20 and other related infrastructure. It serves the public interest

21 to allow gas utilities to recover costs for reasonably and

22 prudently incurred expenditures for energy efficiency

23 measures.

24 (b) In this Section:

25 "Energy efficiency" means measures that reduce the amount

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1 of energy required to achieve a given end use. "Energy

2 efficiency" also includes measures that reduce the total Btus

3 of electricity and natural gas needed to meet the end use or

4 uses.

5 "Cost-effective" means that the measures satisfy the total

6 resource cost test which, for purposes of this Section, means a

7 standard that is met if, for an investment in energy

8 efficiency, the benefit-cost ratio is greater than one. The

9 benefit-cost ratio is the ratio of the net present value of the

10 total benefits of the measures to the net present value of the

11 total costs as calculated over the lifetime of the measures.

12 The total resource cost test compares the sum of avoided

13 natural gas utility costs, representing the benefits that

14 accrue to the natural gas system and the participant in the

15 delivery of those efficiency measures and including avoided

16 costs associated with the use of electricity or other fuels,

17 avoided cost associated with reduced water consumption, and

18 avoided costs associated with reduced operation and

19 maintenance costs, as well as other quantifiable societal

20 benefits, to the sum of all incremental costs of end use

21 measures (including both utility and participant

22 contributions), plus costs to administer, deliver, and

23 evaluate each demand-side measure, to quantify the net savings

24 obtained by substituting demand-side measures for supply

25 resources. In calculating avoided costs, reasonable estimates

26 shall be included for financial costs likely to be imposed by

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1 future regulation of emissions of greenhouse gases. In

2 discounting future societal costs and benefits for the purpose

3 of calculating net present values, a societal discount rate

4 based on actual, long-term Treasury bond yields shall be used.

5 The low-income measures described in subsection (f) of this

6 Section shall not be required to meet the total resource cost

7 test.

8 "Cumulative persisting annual savings" means the total gas

9 energy savings in a given year from measures installed in that

10 year or in previous years, but no earlier than January 1, 2020,

11 that are still operational and providing savings in that year

12 because the measures have not yet reached the end of their

13 useful lives.

14 (c) This Section applies to all gas distribution utilities

15 in the State for those multi-year plans that include energy

16 efficiency programs commencing after December 31, 2019.

17 (d) Beginning in 2020, gas utilities subject to this

18 Section shall achieve the following cumulative persisting

19 annual savings goals, as compared to a deemed baseline

20 equivalent to the utility's average annual therm sales in 2016

21 through 2018 through the implementation of energy efficiency

22 measures during the applicable year and in prior years, but no

23 earlier than January 1, 2020:

24 (1) 1.2% cumulative persisting annual savings for the

25 year ending December 31, 2020;

26 (2) 2.1% cumulative persisting annual savings for the

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1 year ending December 31, 2021;

2 (3) 3.0% cumulative persisting annual savings for the

3 year ending December 31, 2022;

4 (4) 3.9% cumulative persisting annual savings for the

5 year ending December 31, 2023;

6 (5) 4.8% cumulative persisting annual savings for the

7 year ending December 31, 2024;

8 (6) 5.7% cumulative persisting annual savings for the

9 year ending December 31, 2025;

10 (7) 6.6% cumulative persisting annual savings for the

11 year ending December 31, 2026;

12 (8) 7.4% cumulative persisting annual savings for the

13 year ending December 31, 2027;

14 (9) 8.2% cumulative persisting annual savings for the

15 year ending December 31, 2028;

16 (10) 9.0% cumulative persisting annual savings for the

17 year ending December 31, 2029;

18 (11) 9.8% cumulative persisting annual savings for the

19 year ending December 31, 2030;

20 (12) 10.6% cumulative persisting annual savings for

21 the year ending December 31, 2031;

22 (13) 11.4% cumulative persisting annual savings for

23 the year ending December 31, 2032;

24 (14) 12.1% cumulative persisting annual savings for

25 the year ending December 31, 2033;

26 (15) 12.8% cumulative persisting annual savings for

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1 the year ending December 31, 2034; and

2 (16) 13.5% cumulative persisting annual savings for

3 the year ending December 31, 2035.

4 No later than December 31, 2025, the Illinois Commerce

5 Commission shall establish additional cumulative persisting

6 annual savings goals for the years 2036 through 2040. The

7 Commission shall also establish additional cumulative

8 persisting annual savings goals every 5 years thereafter to

9 ensure utilities always have goals that extend at least 11

10 years into the future. The cumulative persisting annual savings

11 goals beyond the year 2035 shall increase by 0.6 percentage

12 points per year absent a Commission decision to initiate a

13 proceeding to consider establishing goals that increase by more

14 or less than that amount. Such a proceeding must be conducted

15 in accordance with the procedures described in subsection (f)

16 of this Section. If such a proceeding is initiated, the

17 cumulative persisting annual savings goals established by the

18 Commission through that proceeding shall reflect the

19 Commission's best estimate of the maximum amount of additional

20 gas savings that are forecast to be cost-effectively achievable

21 unless such best estimates would result in goals that represent

22 less than 0.4 percentage point annual increases in total

23 cumulative persisting annual savings. The Commission may only

24 establish goals that represent less than 0.4 percentage point

25 annual increases in cumulative persisting annual savings if it

26 can demonstrate, based on clear and convincing evidence, that

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1 0.4 percentage point increases are not cost-effectively

2 achievable. The Commission shall inform its decision based on

3 an energy efficiency potential study which conforms to the

4 requirements of subsection (j-5) of this Section.

5 (e) If a gas utility jointly offers an energy efficiency

6 measure or program with an electric utility under plans

7 approved under this Section and Section 8-103B of this Act, the

8 gas utility may continue offering the program, including the

9 electric energy efficiency measures, if the electric utility

10 discontinues funding the program. In that event, the energy

11 savings value associated with such other fuels shall be

12 converted to gas energy savings on an equivalent Btu basis for

13 the premises. However, the gas utility shall prioritize

14 programs for low-income residential customers to the extent

15 practicable. A gas utility may recover the costs of offering

16 the gas energy efficiency measures under this subsection (e).

17 For those energy efficiency measures or programs that save

18 both gas and other fuels but are not jointly offered with an

19 electric utility under plans approved under this Section and

20 Section 8-103B, the gas utility may count savings of fuels

21 other than gas toward the achievement of its annual savings

22 goal, and the energy savings value associated with such other

23 fuels shall be converted to gas energy savings on an equivalent

24 Btu basis at the premises.

25 In no event shall more than 10% of each year's applicable

26 annual total savings requirement as defined in paragraph (8) of

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1 subsection (j) of this Section be met through savings of fuels

2 other than gas.

3 (f) Gas utilities are responsible for overseeing the

4 design, development, and filing of energy efficiency plans with

5 the Commission and may, as part of that implementation,

6 outsource various aspects of program development and

7 implementation. A minimum of 10% of the utility's entire

8 portfolio funding level for a given year shall be used to

9 procure cost-effective energy efficiency measures from units

10 of local government, municipal corporations, school districts,

11 public housing, community college districts, and

12 nonprofit-owned buildings provided that a minimum percentage

13 of available funds shall be used to procure energy efficiency

14 from public housing, which percentage shall be equal to public

15 housing's share of public building energy consumption.

16 The utilities shall also implement energy efficiency

17 measures targeted at low-income single-family and multi-family

18 households, which, for purposes of this Section, shall be

19 defined as households at or below 80% of area median income,

20 and expenditures to implement the measures shall be no less

21 than 20% of the utility's total efficiency portfolio budget.

22 At least 70% of spending on measures in programs targeted

23 at low-income households shall go toward measures that reduce

24 space heating needs through improvements to the building

25 envelope or heating distribution systems. Programs targeted at

26 low-income households, which address single-family and

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1 multi-family buildings shall be treated such that savings

2 opportunities in each building type are approximately in

3 proportional to the magnitude of cost-effective energy

4 efficiency opportunities in these respective building types.

5 Each gas utility shall assess opportunities to implement

6 cost-effective energy efficiency measures and programs through

7 a public housing authority or authorities located in its

8 service territory. If such opportunities are identified, the

9 utility shall propose such measures and programs to address the

10 opportunities. Expenditures to address such opportunities

11 shall be credited toward the minimum procurement and

12 expenditure requirements set forth in this subsection (f).

13 Implementation of energy efficiency measures and programs

14 targeted at low-income households shall be contracted, when it

15 is practical, to independent third parties that have

16 demonstrated capabilities to serve such households, with a

17 preference for not-for-profit entities and government agencies

18 that have existing relationships with or experience serving

19 low-income communities in the State.

20 Each gas utility shall develop and implement reporting

21 procedures that address and assist in determining the amount of

22 energy savings that can be applied to the low-income

23 procurement and expenditure requirements set forth in this

24 subsection (f).

25 The gas utilities shall participate in a low-income energy

26 efficiency advisory committee designed to allow a variety of

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1 stakeholders, especially those living or working in low-income

2 communities, to assist in the design and evaluation of the

3 low-income energy efficiency programs. The committee shall be

4 comprised of the electric utilities subject to the requirements

5 of Section 8-103B of this Act, the gas utilities subject to the

6 requirements of this Section, the utilities' low-income energy

7 efficiency implementation contractors, nonprofit